(RTTNews) – Swiss lender Credit Suisse Group (CS) said on Tuesday it now expects pre-tax earnings to be close to breakeven for the fourth quarter of 2021.

Reported earnings for the fourth quarter of 2021 are negatively impacted by litigation provisions of approximately 500 million Swiss francs. These are partially offset by gains from real estate sales of CHF 225 million.

Before deducting the previously announced goodwill impairment of around 1.6 billion Swiss francs, of which around 1.5 billion Swiss francs in the Investment Bank division and around 0.1 billion Swiss francs in the Asia Pacific division, the company sees breakeven.

In terms of underlying business results, the company stated that there is a decline in transaction-based revenues in the investment banking and wealth management businesses.

The company sees a loss in its investment banking division for the fourth quarter before the goodwill impairment.

In the wealth management business, net new money will be slightly negative in the fourth quarter. The company noted that transaction activity has slowed significantly in its International Wealth Management and Asia Pacific divisions.

The Group’s year-end 2021 CET1 ratio is expected to exceed its target of 14 percent, while its Tier 1 leverage ratio is expected to exceed 6 percent at year-end 2021.

The company plans to provide a full update on its fourth quarter financial performance on February 10th.

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