Credit Suisse Peeps up on Q1 Outflows - InvestingChannel

Credit Suisse Peeps up on Q1 Outflows

Credit Suisse (NYSE:CS) watched its shares clear breakeven on Monday, after it revealed that it suffered net asset outflows of 61.2 billion Swiss francs ($68.6 billion) during the first-quarter collapse that culminated in its emergency rescue by domestic rival UBS (NYSE:UBS).

The stricken Swiss lender posted a one-off 12.43 billion Swiss franc profit for the first quarter of 2023, due to the controversial write-off of 15 billion Swiss francs of AT1 bonds by the Swiss regulator as part of the deal.

The adjusted pre-tax loss for the quarter came in at 1.3 billion Swiss francs.

Swiss authorities brokered the controversial three-billion Swiss franc rescue over the course of a weekend in late March, following a collapse in Credit Suisse’s deposits and share price amid fears of a global banking crisis triggered by the fall of U.S. lender Silicon Valley Bank.

In Monday’s earnings report, which could be the last in its 167-year history, Credit Suisse said it experienced significant net asset outflows, particularly in the second half of March 2023, which have “moderated but have not yet reversed as of April 24, 2023.”

First-quarter net outflows totaled 61.2 billion, 5% of the group’s assets under management as of the end of 2022. Deposit outflows represented 57% of the net asset outflows from Credit Suisse’s wealth management unit and Swiss bank for the quarter.

CS inched upward 0.02 cents, or 2.1%, to 91 cents, while UBS climbed 35 cents, or 1.7%, to $20.64.

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