Credit Suisse stock falls sharply, on the Zurich stock exchange it leaves 7% on the ground after the profit warning launched by the Swiss banking giant.
This morning the bank warned that the geopolitical situation, inflamed with the war in Ukraine, the expectations of a restrictive monetary policy (with more aggressive rate hikes) by central banks in response to the jump in inflation, and the withdrawal of measures stimulus launched to stem Covid have caused “a continuous increase in market volatility, weak customer flows and continuous deleveraging, especially in the APAC (Asia-Pacific) region”.
Credit Suisse added that while the trading division’s turnover benefits from increased volatility, the consequences of the above factors, coupled with “continuing low capital market issuance” and widening credit spreads have “depressed the financial performance” of its investment bank division in April and May. Which means that “probably both this division and the whole group could suffer a loss in the second quarter of 2022”.
The Swiss bank added that “our earnings will also be affected by the continued volatility of the market value of our 8.6% investment in Allfunds Group”.
In fact, notes an article by CNBC, the Spanish wealthtech platform Allfunds Group – to be precise, the only B2B platform for the management of funds, information and research services – has witnessed a fall in prices equal to -52% since beginning of the year.