HONG KONG (Reuters) – Credit Suisse Group AG CSGN.S The Asia-Pacific operations have the highest level of credit provisions for potential loan losses in each of the bank’s major divisions, according to its second quarter accounts.

The Switzerland-based bank made 81 million Swiss francs ($ 88.66 million) in provisions for credit losses in the Asia-Pacific region in the second quarter, its results showed on Thursday, down 16% from 97 million francs in the first quarter.

Provisions in the second quarter referred to four potential individual cases of bad loans in the region, up from 3 in the first quarter, according to the financial statements.

At 81 million francs, Asia-Pacific accounted for the bulk of Credit Suisse’s loan loss provisions in the second quarter, ahead of 77 million francs for global markets and 67 million francs for banking activities. investment and capital market.

Credit Suisse has not identified any individual cases, but a source with direct knowledge of the matter said it was putting money aside to cover credit losses related to China-based coffee chain Luckin Coffee.

A spokeswoman for Credit Suisse in Hong Kong declined to comment.

Luckin’s fortune in mainland China, which had been compared to American Starbucks coffee SBUX.O, have plunged since an investigation into annual false sales of around $ 300 million was disclosed in April, with the Nasdaq halting trading in its shares in June.

Credit Suisse was a leading bank when Luckin Coffee raised $ 561 million when it went public in the United States last year. He was also part of a union that loaned former Luckin chairman Charles Zhengyao Lu $ 518 million.

Credit Suisse said Thursday it was consolidating its global markets and investment banking divisions into a single unit, as chief executive Thomas Gottstein affixes his first major strategic seal to the bank.

Reporting by Scott Murdoch in Hong Kong; Editing by Sumeet Chatterjee