Credit Suisse, now a subsidiary of UBS, has reported a staggering loss of 3.5 billion Swiss francs (approximately $4.0 billion) for the second quarter of 2023.

The report was published in the Sonntagszeitung, which cited insiders at the bank. Spokespersons for UBS and Credit Suisse declined to comment to the press.

Credit Suisse had already forecast a significant pre-tax loss for the second quarter and full year 2023 in April, given its move to exit from non-core businesses and due to restructuring and financing costs. UBS will present its quarterly results on Aug. 31.

This development has sent shockwaves through the financial sector. The full impact of this loss on Credit Suisse and its parent company UBS, remains to be seen.