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Outflows of CHF 61 billion – Credit Suisse clients withdraw their money

Outflows of CHF 61 billion – Credit Suisse clients withdraw their money


These are probably the last quarterly numbers the SNB will provide before the UBS takeover.

(Photo: dpa)

Zurich Credit Suisse clients continue to withdraw assets from the troubled bank on a massive scale. From January to March, net money outflows amounted to $61.2 billion, the institute announced Monday. The equivalent of 62.39 billion euros.

The cash flow was particularly high in the days immediately leading up to the emergency state-ordered takeover by rival UBS on March 19. They continued at a lower level,” the trend reversal was not observed until April 24,” the bank continued in its statement.

In mid-March, Credit Suisse had to get a boost from the Swiss National Bank (SNB) with massive liquidity assistance. At the end of March, outstanding loans amounted to 108 billion Swiss francs. Credit Suisse has already paid another 70 billion in liquidity aid.

The final result after three months was a net profit of 12.4 million Swiss francs. However, this particular profit is due solely to the depreciation of the secondary interest-bearing securities, called AT-1 bonds. Without this measure ordered by the financial regulator Finma, a loss of CHF 1.3 billion would have been incurred.

Assets under management melted to 1.253 trillion Swiss francs from 1.294 trillion Swiss francs at the end of 2022. The core business, wealth management in particular, is suffering from a loss of customer confidence. Within three months, clients have withdrawn nine percent of assets under management at the end of 2022.

The core business is eroding

This also obscures the future prospects of the company, which will be merged into UBS in the future. Commissions and recurring fees, one of the most important metrics in wealth management, fell 17 percent. Against this background, Credit Suisse wrote off the division’s intangible business reputation of CHF 1.3 billion.

The investment bank managed to limit its losses somewhat compared to the same quarters a year earlier, but continued to burn more than 300 million francs in the first three months of the year. Only Swiss International Bank had a positive pre-tax result of CHF 313 million. The division is by far the most crisis-resistant area of ​​\u200b\u200bbusiness and has always brought stable income, despite the long-term crisis.

For the second quarter and for the year as a whole, the bank reported a significant pretax loss. UBS plans to release its quarterly results on Tuesday.

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