Credit Suisse Sees $68 Billion Outflow in Q1 2023
On Monday, Credit Suisse reported that 61 billion Swiss francs ($68 billion) worth of assets left the bank in Q1 2023, with outflows continuing.
The bank stated that customer deposits had declined by 61 billion francs in the quarter, with matured time deposits not being renewed.
Credit Suisse added that these outflows had moderated but not yet reversed as of April 24, 2023.
Most of the money left the bank came from its wealth management division across all regions. The bank reported results for the last time as it is expected to merge with UBS Group.
Credit Suisse’s revenue generation capacity has been negatively impacted, and unless a comprehensive overhaul plan is announced, it could continue to hamper UBS’s operating performance.
In the last quarter, the bank declared a pre-tax profit of 12.8 billion francs, mainly due to the contentious write-down of AT1 bonds and the sale of a portion of its Securitized Products Group.
Still, after adjusting for these factors, it recorded a loss of 1.3 billion francs.
The group is projected to incur a loss for the year as both the wealth management and investment banking divisions are anticipated to operate at a loss during the second quarter.