London
CNN
—
Credit Suisse
(CS) reported its biggest annual loss since the 2008 financial crisis, highlighting the scale of the challenge facing the economy. scandal Swiss bank when it tries come back.
The lender on Thursday announced a loss of 1.4 billion Swiss francs ($1.5 billion) in the fourth quarter of 2022, extending the term loser starts in 2021 and lasts all year losses amounted to 7.3 billion Swiss francs ($7.9 billion). In 2008, Credit Suisse lost 8.2 billion Swiss francs ($8.9 billion).
The bank’s shares fell 5% in early trading. The stock is down 65% over the past 12 months but up 12% through 2023.
Credit Suisse said in a declare that fourth-quarter operating results were influenced by the “challenging economic and market environment, substantial net asset and deposit flows at the beginning of the quarter, and our implementation of strategic actions.” It added that it expected to generate another “significant loss” in 2023.
Customers withdrew 111 billion Swiss francs ($121 billion) in the last three months of 2022, when the bank was hacked social media speculation that it is on the verge of collapse.
The rumors triggered a sell-off in stocks, followed by a series of missteps and compliance failures that cost the bank dearly.
For example, the collapse of US hedge fund Archegos Capital Management, a client of Credit Suisse, in 2021 cost the bank $5.5 billion. An independent external investigation later found “a failure to manage risk effectively”.
Since then, Credit Suisse has embarked on a massive restructuring that will require cutting 9,000 full-time jobs, breaking away from investment banking and focusing on wealth management.
In a step towards this, the company announced on Thursday the acquisition of M. Klein & Company, an investment banking business.
Credit Suisse CEO Ulrich Körner said the deal “marks another important milestone in the process of transforming CS First Boston into a leading independent capital markets and advisory business.”
The bank also announced that it has completed the first phase of an agreement to sell its securitization product group to Apollo Global Management, which is expected to close in the first half of this year.
“We have a clear plan to create a new Credit Suisse and intend to continue our three-year strategic transformation by reshaping our portfolio, reallocating capital, adjusting scale the right cost base and build on our top franchises.” Körner said in the statement.
— Julia Horowitz contributed to this report.
