Credit Suisse lost $68 billion in assets in the third quarter, and its losses continue.

ZURICH, 24 APRIL (Reuters) – Credit Suisse (CSGN.S) stated on Monday that 61 billion Swiss francs ($68 billion) in wealth left the bank in the initial quarter and that withdrawals were continuing, emphasizing the difficulty that UBS Group (UBSG.S) faces in rescuing its rival.

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 in the third quarter customer deposits dropped by 67 billion francs, and many matured time deposits were not extended, the bank highlighted

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“These withdrawals have decreased but still haven’t reversed as of April 24, 2023,” Credit Suisse stated, adding that the majority of the money leaving the bank came from the firm’s wealth management sector and happened across all regions. Clients withdrew 110.5 billion francs from the bank in the fourth quarter, resulting in the net asset outflow.

Since its state-engineered merger with UBS is set to be completed soon the 167-year-old bank declared earnings for the last time. Much of Switzerland’s image as a trustworthy worldwide financial center, particularly among the ultra-wealthy, will hinge on the seamless integration of two internationally significant systemic institutions.

UBS and Credit Suisse shares were up around 2% in morning trade, with several analysts noting that the withdrawals were not as significant as expected.

Others, though, felt the total amount was frightening.

Credit Suisse’s ability to generate revenue seems to have been hurt to such an extent that “the deal could well continue to be a drag on UBS operating results unless a deeper reorganization plan is announced,” according to the report according to London-based KBW analyst Thomas Hallett in a client note.

Assets handled by the main wealth management sector fell 29% year on year to 502.5 billion francs at the end of March.

Clients quickly began withdrawing funds from the scandal-plagued Credit Suisse after it became entangled in the market upheaval caused by the failures of US lenders Signature Bank and Silicon Valley Bank.

In the rapidly put-together rescue deal, UBS promised to take over Credit Suisse for 3 billion francs in stock and pay up to 5 billion francs in damages. The agreement also includes governmental financial guarantees of 200 billion francs.

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