Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Credit Suisse reports largest annual loss since 2008

Credit Suisse Group (CSGN) on Thursday reported the largest annual loss since the 2008 financial crisis, as it saw unprecedented client withdrawals.

The lender’s net loss stood at CHF 1.39 billion in the fourth quarter, compared with a loss of CHF 2 billion in the year-ago period.

For the full year, Switzerland’s second-largest bank posted a total net loss of CHF 7.29 billion, while recording a second consecutive year of losses.

The bank saw total net asset outflows of CHF 110.5 billion in the fourth quarter. Asset outflows in the financial group’s wealth management division amounted to CHF 92.7 billion, far exceeding a consensus of analyst estimates of CHF 61.9 billion.

The massive fund outflows in 2022 led to the breach of some liquidity requirements, but still, the bank said liquidity had been bolstered as it completed a CHF 4 billion fundraising.

“We have a clear plan to create a new Credit Suisse and intend to continue to deliver on our three-year strategic transformation by reshaping our portfolio, reallocating capital, right-sizing our cost base, and building on our leading franchises,” the bank’s Chief Executive Officer Ulrich Koerner said in a statement, cited by Reuters.

Credit Suisse’s CET1 capital ratio improved to 14.1% at the end of the fourth quarter from 12.6% at the end of Q3. Market consensus had pointed to an improvement to 13.8%.

The shares of Credit Suisse Group AG were last losing 3.41% (CHF 0.11) on the day to trade at CHF 3.14 in Zurich. The financial group’s total market cap now stands at CHF 12.41 billion.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News