Credit Suisse’s investment bank reported a large loss in the first quarter as its leveraged loan portfolio hit profits and Covid-19 weighed heavily on client activity.

The bank said unrealised mark-to-market losses of 142m Swiss francs ($146.1m) in its leveraged loan portfolio had pushed its investment banking and capital markets unit to a year-on-year loss of CHF378m in the three months to the end of March — much steeper than the CHF117m loss predicted by analysts.