Clients have pulled out $68 billion in assets from Credit Suisse in the first quarter and outflows were continuing, underscoring the challenge faced by UBS Group in rescuing its rival
Customer deposits declined by 67 billion francs in the quarter and the bank noted many matured time deposits had not been renewed.
Shares in both UBS and Credit Suisse were up roughly 2% in morning trade, with some analysts noting the outflows were not as bad as feared.Credit Suisse's ability to generate revenue appeared to be so damaged that "the deal could well remain a drag on UBS operating results unless a deeper restructuring plan is announced," London-based analyst Thomas Hallett at KBW said in a note to clients.
In the rescue package rushed together by Swiss authorities, UBS agreed to take over Credit Suisse for 3 billion francs in stock and assume up to 5 billion francs in losses. The deal also includes 200 billion francs in state financial guarantees.A view shows the logo of Credit Suisse on a building near the Hallenstadion in Zurich, Switzerland, April 4, 2023.
UBS, which has flagged that it expects the deal to bring $8 billion in cost reductions by 2027, reports first-quarter earnings on Tuesday. On Monday, it said that Christian Bluhm - whose departure had been previously announced -Other key facts from Credit Suisse's filing on Monday include:
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