Milano – New leaks coming for the Swiss credit, the Swiss credit giant overwhelmed by the crisis and a series of scandals. The institute headed by Ulrich Korner yesterday has launched a profit alert, the quarter of 2022, announcing that the last quarter of the year will also close in the red. The expected new loss is estimated at 1.5 billion francsa figure that adds up to the 5.9 billion losses accumulated from January to September.
A negative result, which required a change at the top with the arrival of Korner last August, a new industrial plan and a capital increase of 4 billion to complete it. Extreme measures which are also the consequence of the massive capital outflows of the bank’s wealthy customers, worried about the stability of the institution, which is engaged in a difficult restructuring.
Since the beginning of October, 10% of the assets entrusted to the wealth management division of the Swiss giant, whose reputation has been severely tested by repeated scandals, have been withdrawn. Also since October, Credit Suisse has recorded net outflows of deposits and assets equal to approximately 6% of the assets it held at the end of September.
In less than a month and a half, according to the Financial Times, customers of the Swiss bank would have withdrawn 86 billion francs from the institution. A mass of outflows defined as “worrying” by analysts of Jp Morgan, and comparable to that recorded by UBS during the last financial crisis, only that in the case of Credit Suisse they have evaporated within five weeks. The announcement of 1.5 billion of new losses, to which the investment banking division also contributed, caused shares on the Zurich Stock Exchange to fall by 6.1%.
The bank’s stock hit new lows at 3.62 francs, equal to a capitalization of 9.5 billion francs, four times that of Monte dei Paschi di Siena (which yesterday was worth 2.3 billion euros). Credit Suisse explained that the outflows accentuated in the first weeks of October, when uncertainty grew around the new restructuring plan which envisages 9,000 redundancies.
Rebuilding confidence in the Swiss giant – which has also announced the spin-off of its investment banking division – will be Korner’s biggest challenge. Meanwhile, again yesterday, the new management received the go-ahead from the shareholders’ meeting for a capital increase of 4 billion francs, including that of Saudi National Bank. The Saudi bank – which has said it is willing to follow the recapitalization – is a candidate to become the first shareholder of Credit Suisse with 9.9% of the capital. «The strategic plan that we have prepared is clear – he declared President Alex Lehmann – we want to rebuild Credit Suisse as a strong and efficient bank, with foundations as solid as the rock of our mountains».
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