Credit Suisse Lost $68 Billion in Assets Last Quarter, and Outflows Continue

• Credit Suisse said on Monday (April 24, 2023) that 61 billion Swiss francs ($68 billion) in assets left the bank in the first quarter and that outflows were continuing, underscoring the challenge faced by UBS Group in rescuing its rival.
• Customer deposits declined by 67 billion francs in the quarter and the bank noted many matured time deposits had not been renewed. "These outflows have moderated but have not yet reversed as of April 24, 2023," Credit Suisse said, adding that most of the money leaving the bank was from its wealth management division and occurred across all regions. The net asset outflow followed 110.5 billion francs pulled by clients from the bank in the fourth quarter.
• The 167-year-old bank reported results for what is likely to be the last time, as its state-engineered marriage with UBS is expected to be completed soon. Much of Switzerland's reputation as a trusted global financial centre - particularly for the ultra-wealthy - will rest on whether the two globally important systemic banks can be successfully integrated.
• Credit Suisse's ability to generate revenue appeared to be so damaged that "the deal could well remain a drag on UBS operating results unless a deeper restructuring plan is announced," London-based analyst Thomas Hallett at KBW said in a note to clients.

(Source: Reuters)