Credit Suisse’s Asian business has highest level of credit provisions

By Scott Murdoch
HONG KONG (Reuters) – Credit Suisse Group AG’s Asia-Pacific business has the highest level of credit provisions for potential loan losses across each of the bank’s major divisions, according to its second-quarter accounts.
The Swiss-based bank made 81 million Swiss francs ($88.66 million) in provisions for credit losses in the Asia-Pacific in the second quarter, its results showed on Thursday, down 16% from 97 francs million in the first quarter.
Provisions in the second quarter referred to four individual potential bad-loan cases in the region, up from 3 in the first quarter, the financial statements showed.
With 81 million francs the Asia Pacific accounted for most of Credit Suisse’s loan loss provisions in the second quarter, ahead of 77 million francs for global markets and 67 million francs in investment banking and capital market business.
Credit Suisse did not identify any individual cases but a source with direct knowledge of the matter said it was setting aside cash to cover the credit losses linked to China-based coffee chain
Luckin Coffee
A Credit Suisse spokeswoman in Hong Kong declined to comment.
The fortunes of mainland China’s Luckin, which had been compared to U.S. coffeehouse
, have nosedived since an investigation into fake annual sales of about $300 million was disclosed in April, with the
suspending trading in its share