Credit Suisse's APAC business reports highest level of credit provisions

The lender is bracing for losses linked to Luckin Coffee.

Credit Suisse Group AG’s APAC business recorded the highest level of credit provisions for potential loan losses across each of the bank’s major divisions, reports Reuters, based on the lender’s Q2 results.

The Swiss-based lender made $88.66m in provisions for credit losses in APAC for Q2, down 16% from around $105.96m in Q1.

The lender named four individual potential bad-loan cases in the region, up from three in the Q1.

APAC accounted for most of Credit Suisse’s loan loss provisions in Q2, ahead of the $84.12m for global markets and around $73.21m 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 Luckin Coffee.

Here’s more from Reuters.