Credit Suisse had 848 million francs ($914m) of credit exposure to Russia at close of last year, it said in an update today (10 March), while also stating that its 125 Moscow-based staff including wealth management advisers would continue to work there.
As part of its annual report disclosures, Credit Suisse said it had an office in Moscow with approximately 125 colleagues working across wealth management and the investment bank, in both front office and corporate function roles.
"Their ongoing safety and security is a top priority; we monitor the situation daily and have planned for a number of potential scenarios" it said, without going into any further detail.
The Zurich-based banking giant is the latest of many across the international financial services and wider business industry to explain their exposure to Russia.
A few days earlier UBS said it had around $200m exposure to Russian assets that were used as collateral in loans to clients at its wealth unit.
UBS also identified "a small number" of wealth management clients who have been sanctioned in response to Russia's invasion of Ukraine, it said in its annual report on 7 March. Those clients had less than $10m in total loans outstanding as of 3 March.
Thomas Gottstein, CEO of Credit Suisse Group, said: "I speak for the whole Executive Board of Credit Suisse when saying we are deeply saddened by the Russian invasion of Ukraine. We condemn this invasion and the serious breaches of international law.
"The instability that these events are creating for societies and countries across the globe will have far-reaching consequences, and our thoughts go out to all those impacted.
"While we do not have a physical presence in Ukraine, we are committed to providing support to our colleagues and their families within the region.
"In addition, we have launched a bank-wide appeal in aid of select Red Cross organizations in which Credit Suisse will match the charitable contributions that our employees are making on a one-for-one basis."
"In purely financial terms, we have reviewed our positions and believe that the bank's exposure in relation to Russia is well-managed, with appropriate systems in place to address associated risks. The current environment means making difficult decisions and managing through challenging situations, but always with a clear sense of perspective and the desire to do the right thing.
"As a matter of principle and policy, Credit Suisse applies all sanctions, in particular those issued by the EU, the United States and by Switzerland."
Russia net credit exposure was CHF 848m as of December 31, 2021, which includes derivatives and financing exposures in the Investment Bank, trade finance exposures in the Swiss Universal Bank and Lombard and other loans in International Wealth Management. These net exposures have been reduced since the end of 2021.
Net assets held in its Russian subsidiaries, JSC "Bank Credit Suisse (Moscow)" and LLC "Credit Suisse Securities (Moscow)", totaled CHF 195m as of December 31, 2021.
Country credit risk exposures to Ukraine or to Belarus were not material as of December 31, 2021.
As of March 7, 2022, it further said it had minimal total credit exposures towards specifically sanctioned individuals managed by our Wealth Management division.
"Our market risk exposure to Russia as of March 9, 2022 is not significant. Credit Suisse is monitoring settlement risks related to certain open transactions with Russian banks and non-bank counterparties or Russian underlyings as market closures, the imposition of exchange controls, sanctions or other factors may limit our ability to settle existing transactions or realize collateral which may result in changes in our exposure.
"It is premature to estimate the potential impact of the war in Ukraine on the global economy and markets and on our clients' risk appetite. However, in the short term, the resultant increase in trading and hedging business activity is expected to be offset by a reduction in capital market issuances due to the rise in volatility as well as by higher credit provisions."
