Tens of billions were withdrawn from Credit Suisse in the first three months of 2023, the bank’s earnings report showed Monday, providing clues to the towering challenges ahead as UBS prepares an emergency takeover.
Switzerland’s long-time second largest bank saw 61.2 billion Swiss francs withdrawn in the first quarter alone, it said Monday in what is likely its final quarterly report before it is swallowed by its larger domestic rival, UBS.
“These outflows have moderated but have not yet reversed as of April 24, 2023,” the bank said in its earnings statement. Venditti pointed out that over the past six months, Credit Suisse’s wealth management division alone had seen 140 billion francs in net new money outflows. The order by the Swiss Financial Market Supervisory Authority infuriated bondholders, and a number of them have begun launching legal action against the regulator.
The bank, which last October launched a vast restructuring plan including carving out its investment arm, said that unit had suffered an adjusted pre-tax loss of 337 million in the first quarter.And it warned that it expected to see “substantial” pre-tax losses in its investment bank unit and overall in the second quarter and full year of 2023.
Credit Suisse suffered a string of scandals over the past several years, and after the collapse of three US regional banks unleashed market panic, it was left looking like the weakest link in the chain.
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