- Credit Suisse, which was taken over by UBS a good five weeks ago, lost a further CHF 61.2 billion in client funds in the first quarter.
- Thanks to the AT1 write-downs, the big bank’s quarterly profit amounted to CHF 12.4 billion.
- It is probably the last time that CS will independently present its figures before the takeover by UBS.
The financial results of the second largest Swiss bank for the first three months of the year are strongly influenced by the forthcoming merger with UBS.
CS reports pre-tax profit of CHF 12.8 billion. Adjusted for the first three months, however, the ailing big bank posted a pre-tax loss of CHF 1.3 billion. The bottom line is that the net profit for the first quarter was CHF 12.4 billion.
Client assets further shrunk
With the money withdrawals in the first quarter, the customer assets of the big bank continued to shrink. At the end of March 2023, assets under management had fallen to CHF 1.253 trillion, from CHF 1.294 trillion at the end of 2022.
Because of the massive withdrawals of customer funds in March, the Swiss authorities ordered the takeover of CS by rival UBS a month ago.
Credit Suisse will work closely with UBS to ensure the transaction is completed in a timely manner, the statement said communication. UBS plans to publish its quarterly results on Tuesday.
Significant pre-tax loss for full year 2023
For the current full year 2023, Credit Suisse is expecting a significant pre-tax loss. This is in light of the announced takeover by UBS and the previously announced exit from non-core businesses, as well as restructuring and financing costs.
Actual results would depend on a number of factors including IB and Wealth Management (WM) Division results and deposit or net cash flows. The effects of the ongoing “voluntary and involuntary fluctuation” of employees and potential real estate sales would also affect future business.