Credit Suisse says £55bn left banks to be bailed out by UBScredit suisse
Credit Suisse said clients withdrew CHF 61 billion (£55 billion) worth of assets from the bank earlier this year, revealing the scale of the panic that led to the bank’s collapse. Emergency takeover by rival UBS last month.
A Swiss lender said “high withdrawals” were partly responsible for its weak first quarter, with its adjusted pre-tax loss ballooning to CHF 1.3 billion in the first three months of the year. . This can be compared to his profit of CHF 300 million in the same period in 2022.
The figures were detailed in what is likely to be the last series of independent financial results for the 167-year-old bank as it prepares to be incorporated into UBS in the coming months. .
“Late March 2023, credit suisse There have been substantial withdrawals,” the bank said. “These spills were most severe in the days immediately before and after the merger announcement, but stabilized at much lower levels, but had not yet reversed as of April 24.”
Customers in the bank’s flagship wealth management division, which manages funds on behalf of wealthy customers, withdrew 9% of their assets in the first quarter alone. This accelerated months of withdrawals by clients, with the division reporting assets under management of CHF 502.5 billion at the end of March, compared with CHF 707 billion a year earlier.
Credit Suisse says an overall decline in assets and deposits in the first quarter hit revenues and fees, likely resulting in a ‘significant pre-tax loss’ for the group in the second quarter and overall 2023. This could pose a problem for Credit Suisse staff, who are at risk of job cuts as UBS considers the future shape of its business after the acquisition.
After the sudden collapse of Silicon Valley Bank, a California-based technology and venture capital lender last month, customers began pouring money out of Credit Suisse amid growing concerns about the health of global banking markets. rice field.
Credit Suisse has been plagued by scandals for years, but its future has come under fire after its largest shareholder, the Saudi National Bank, ruled out additional funding for Swiss lenders despite growing turmoil. Panic increased.
The crisis of confidence forced the Swiss authorities to first: provide emergency loansUBS bought the lender at a markdown of CHF 3 billion, before finally arranging the Shotgun acquisition by Switzerland’s largest bank UBS.
The bank said on Monday it had borrowed around CHF 168 billion from the Swiss National Bank as of the end of March as part of an emergency loan facility aimed at supporting the bank’s operations amid heightened uncertainty. I made it To date, it has repaid about 70 billion Swiss francs of the total amount.
Credit Suisse did not hold a call with media or analysts after its first-quarter earnings release, but said it would “work closely with UBS to ensure a timely closing of the transaction.”
Summarize this content to 100 words Credit Suisse said clients withdrew CHF 61 billion (£55 billion) worth of assets from the bank earlier this year, revealing the scale of the panic that led to the bank’s collapse. Emergency takeover by rival UBS last month.A Swiss lender said “high withdrawals” were partly responsible for its weak first quarter, with its adjusted pre-tax loss ballooning to CHF 1.3 billion in the first three months of the year. . This can be compared to his profit of CHF 300 million in the same period in 2022.The figures were detailed in what is likely to be the last series of independent financial results for the 167-year-old bank as it prepares to be incorporated into UBS in the coming months. .“Late March 2023, credit suisse There have been substantial withdrawals,” the bank said. “These spills were most severe in the days immediately before and after the merger announcement, but stabilized at much lower levels, but had not yet reversed as of April 24.”Customers in the bank’s flagship wealth management division, which manages funds on behalf of wealthy customers, withdrew 9% of their assets in the first quarter alone. This accelerated months of withdrawals by clients, with the division reporting assets under management of CHF 502.5 billion at the end of March, compared with CHF 707 billion a year earlier.Credit Suisse says an overall decline in assets and deposits in the first quarter hit revenues and fees, likely resulting in a ‘significant pre-tax loss’ for the group in the second quarter and overall 2023. This could pose a problem for Credit Suisse staff, who are at risk of job cuts as UBS considers the future shape of its business after the acquisition.After the sudden collapse of Silicon Valley Bank, a California-based technology and venture capital lender last month, customers began pouring money out of Credit Suisse amid growing concerns about the health of global banking markets. rice field.Credit Suisse has been plagued by scandals for years, but its future has come under fire after its largest shareholder, the Saudi National Bank, ruled out additional funding for Swiss lenders despite growing turmoil. Panic increased.The crisis of confidence forced the Swiss authorities to first: provide emergency loansUBS bought the lender at a markdown of CHF 3 billion, before finally arranging the Shotgun acquisition by Switzerland’s largest bank UBS.The bank said on Monday it had borrowed around CHF 168 billion from the Swiss National Bank as of the end of March as part of an emergency loan facility aimed at supporting the bank’s operations amid heightened uncertainty. I made it To date, it has repaid about 70 billion Swiss francs of the total amount.Credit Suisse did not hold a call with media or analysts after its first-quarter earnings release, but said it would “work closely with UBS to ensure a timely closing of the transaction.”
https://www.theguardian.com/business/2023/apr/24/credit-suisse-says-68bn-left-bank-in-lead-up-to-rescue-by-ubs Credit Suisse says £55bn left banks to be bailed out by UBScredit suisse