By Ed Frankl
Credit Suisse Group AG notched up its fifth-straight quarterly loss within the final three months of 2022 after shoppers pulled billions in deposits from its wealth-management enterprise, and flagged an additional full-year loss in 2023.
Switzerland’s second-largest lender on Thursday reported a fourth-quarter internet lack of 1.39 billion Swiss francs ($1.51 billion) in contrast with a lack of CHF2.09 billion in the identical interval of 2021, as income dropped 33% on yr to CHF3.06 billion.
An organization-compiled consensus forecast had anticipated a internet lack of CHF1.34 billion on income of CHF3.15 billion.
The lender already in November flagged expectations of a CHF1.5 billion pretax loss, after decrease deposits and property below administration led to decreased internet curiosity earnings and recurring commissions and costs, dragging its wealth-management enterprise right into a loss. In the tip, the pretax loss got here to CHF1.32 billion.
It got here after the Zurich-based firm skilled deposit and net-asset outflows in October as social-media experiences and a spike in credit-default swaps precipitated a frenzy over the financial institution’s monetary place.
Assets below administration fell 8% in contrast with the earlier quarter, largely at its wealth-management division, to CHF1.294 trillion, because of the outflows in addition to adversarial foreign-exchange impacts, partly offset by favorable market actions, the financial institution stated.
The firm declared a dividend of CHF0.05 a share for 2022.
The firm stated it anticipates a big loss earlier than taxes in 2023, as a result of restructuring prices and exits from companies, including that it expects its funding financial institution to report a loss within the yr.
Write to Ed Frankl at firstname.lastname@example.org
Corrections & Amplifications
This story was corrected at 0645 GMT. The authentic model misstated Credit Suisse’s internet loss within the fourth quarter of 2021 as CHF2.09 billion. The loss was CHF2.9 billion.
Credit Suisse’s internet loss within the fourth quarter of 2021 was CHF2.09 billion. “Credit Suisse Posted Fifth-Straight Loss in 4Q,” at 0617 GMT, incorrectly stated it was CHF2.9 billion.
Source web site: www.marketwatch.com