Credit Suisse posts massive annual loss as ‘radical’ restructure gets underway

Credit Suisse On Thursday Reports a net loss of 1.4 million in the fourth quarter Swiss It continues to implement its enormous strategic overhaul, which has cost it 1.51 billion francs

The Analyst projections for a net loss of 1.32 billion attributable shareholders were wrong, and the quarterly result was worse. Swiss The embattled were given francs Swiss Lender’s loss for the full year to 7.3 billion Swiss francs.

Under Investors are under pressure Credit Suisse In October Announced a plan to simplify its business and transform it in an effort return to stability profitability after chronic underperformance at its investment bank. Litany of compliance and risk issues.

CEO Ulrich Koerner According to 2022, “crucial year for Credit Suisse” And it was. “executing at pace” Its strategic plan to create an environment that is supportive of entrepreneurship “simpler, more focused bank.”

“We successfully raised CHF ~4 billion in equity capital, accelerated the delivery of our ambitious cost targets, and are making strong progress on the radical restructuring of our Investment Bank,” Koerner Statement.

“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.”

In November?, Bank projects 1.5 billion Swiss franc loss For the fourth quarter, amid large-scale restructuring expenses Credit Suisse Shareholders approve a capital raise of $4.2 billion The funds will be used to finance the renovation.

The Capital raise included the sale at 9.9% Credit Suisse Send shares to Saudi National BankIt was the bank’s largest shareholder. The Qatar Investment Authority became the second-largest shareholder In Credit Suisse It doubled its stake in the company late last year.

Reports Led by liquidity concerns Credit Suisse In late 2022, there will be significant outflows of assets under administration. Koerner CNBC, the World Economic Forum In January That the bank had seen a dramatic reduction in outflows meant that that money was now flowing back into certain areas of business.

Despite Net outflows reached 110.5 billion. Swiss Francs in the fourth Quarter, taking the annual outflows of assets for 2022 to 123.2 Billion Swiss Francs are compared to 30.9 million inflows for 2021.

The The bank’s wealth management unit saw net asset outflows in excess of 95.7 billion in 2022. This was mainly concentrated in the fourth quarter.

Credit Suisse It was revealed that approximately two-thirds of the larger net asset outflows during the quarter were in this region. OctoberAnd “reduced substantially for the rest of the quarter.”

The According to bank, its results were “significantly affected by the challenging macro and geopolitical environment with market uncertainty and client risk aversion.”

“This environment has had an adverse impact on client activity across all our divisions. While we would expect these market conditions to continue in the coming months, we have taken comprehensive measures to further increase our client engagement, regain deposits as well as AuM and improve cost efficiencies,” According to the bank.

Other Highlights Thursday’s earnings:

  • CET 1 (common equity tier one capital) ratio, a measure of bank solvency, reached 14.1% from 14.4% a year ago.
  • Fourth-quarter net revenues stood at 3.06 billion Swiss Francs starting at 4.58 billion Swiss A year earlier, francs
  • Total fourth-quarter operating expenses were 4.33 billion Swiss francs, as compared to 6.27 billion a Year Ago.

Credit Suisse’s The bank will sell a part of its securitized products group to the U.S. investment houses PIMCO, and Apollo Global ManagementCS will be rebranded to reflect the downsizing of its investment bank, and the spin-off of its capital markets advisory unit. First Boston.

Credit Suisse Shares have increased by nearly 17% since the beginning of this year.

The To form CS with U.S. headquarters, a planned carve out of the investment bank was made First Boston In the fourth quarter, we moved ahead Credit Suisse On Thursday Announced that it had purchased The Klein Group $175 million

The The appointment was also confirmed by the bank Michael Klein As CEO of banks and the AmericasCS CEO Designate First Boston.

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