Luckin Collapse Adds to Credit Suisse’s Asian Loan Losses
- Swiss bank on the hook for $100 million in soured loans
- Mark-to-market credit losses offset gain in markets businesses
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Credit Suisse Group AG was stung by the collapse of Luckin Coffee Inc. in China following an accounting scandal, which led to a five-fold increase in Asian loan-loss provisions.
The Swiss bank set aside 97 million Swiss francs ($100 million) for soured loans, primarily related to three cases, the largest of which was Luckin Coffee, according to a person familiar with the matter. The bank only referred to a “Chinese food and beverage company” in its earnings statement Thursday.