Credit Suisse has reported its biggest annual loss since the 2008 financial crisis, capping a period of turmoil and revealing the scale of the Swiss banking restructuring challenge.
Lenders on Thursday reported losses of SFr1.4 billion ($1.5 billion) in the fourth quarter, but could be as high as SFr1.5 billion after October’s upheaval when clients withdrew 10% of the bank’s wealth management assets. had previously hinted at that. The bruised quarter took the bank’s annual loss to 7.3 billion francs.
Customers withdrew CHF107 billion from the group in the quarter, two-thirds of which was withdrawn in October, the bank added on Thursday.
credit suisse In order to draw a line in the series of crises and turn to the black, the company embarked on drastic restructuring.
Under this plan, the group will Eliminate 9,000 of 52,000 employeesspins off an investment bank, revives the First Boston name, and strengthens its wealth management business.
The bank warned on Thursday that it expects further “significant losses” in 2023 as it absorbs restructuring costs.
In addition to its quarterly results, the bank also announced the completion of its acquisition of M Klein & Co., an advisory boutique owned by Michael Klein, former director of the Credit Suisse spin-off investment bank. Did.
Credit Suisse paid $175 million to the business in the form of convertible notes. Mr. Klein has been appointed CEO of Credit Suisse’s banking division and head of the Americas region. He participates on the Executive Board and reports to Group CEO Ulrich Körner.
Mr. Corner said the acquisition was “another milestone in the carve-out of CS First Boston as a leading independent capital markets and advisory business,” adding that “this transaction will strengthen CS First Boston’s advisory and capital markets capabilities.” should be strengthened further,” he added.
Credit Suisse also announced the completion of the first phase of the transaction to sell its securitized products business to Apollo. The new business will be called Atlas SP Partners.
In the last three months of last year, Credit Suisse reported a 33% decline in revenue, mainly due to a 74% decline in investment banking fees. Wealth Management revenues were down 17% and Asset Management revenues were down 28%.
The results revealed a bruising mid-quarter outflow, but the bank’s chairman and chief executive insisted the outflow was contained and customers were starting to return.