Credit Suisse Logs Worst Annual Loss Since Global Financial Crisis

Reuters2023-02-09

ZURICH, Feb 9 (Reuters) - Credit Suisse Group on Thursday reported its worst annual loss since the 2008 global financial crisis, battered by scandals and heavy losses that led to unprecedented customer withdrawals.

Switzerland's second biggest bank posted a net loss in the fourth quarter of 1.39 billion Swiss francs ($1.51 billion), in line with an analyst consensus estimate of 1.34 billion francs compiled by the lender.

The bank had flagged in November a hefty quarterly loss.

The result compares with a 2 billion franc loss in the same quarter a year earlier, and brings Credit Suisse's total net loss in 2022 to 7.29 billion francs, marking its second straight year in the red.

Net asset outflows for the last three months of the year totalled 110.5 billion Swiss francs, the bank said.

The haemorrhaging of funds last year led to it breach some liquidity requirements.

The bank, however, completed a 4 billion Swiss franc fundraising in December and said liquidity levels had been boosted, while Koerner said last month that Credit Suisse was "seeing money now coming back in different parts of the firm."

Among a slew of scandals in recent years, Credit Suisse has been particularly hard hit by its $5.5 billion loss on U.S. investment firm Archegos and the freezing of $10 billion worth of supply chain finance funds linked to insolvent British financier Greensill.

($1 = 0.9195 Swiss francs)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Cedric77
    2023-02-10
    Cedric77
    Credit Suisse Group warned it expects a substantial loss this year after clients pulled a record amount of funds in the final three months of 2022, capping the bank’s worst annual performance since the financial crisis. The worse-than-expected net loss of 1.39 billion Swiss francs (S$2 billion) in the three months through December was driven by losses at both the key wealth division and the investment bank, Credit Suisse said on Thursday (Feb 9). What is the outlook for Credit Suisse in Yr2023? Credit Suisse Investment Outlook 2023: Fixed income assets provide investment opportunities in a new world order. Global economic growth will generally stay low in 2023. Yet with monetary policy tightening likely to slow or end in 2023, Credit Suisse believes fixed income assets will become more att
Leave a comment