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Credit Suisse headquarters on Zurich's Paradeplatz: It suffered from wild speculation about the future
Photo: Michael Buholzer / KEYSTONE / dpa
In 2022, Credit Suisse had its worst result since the financial crisis.
Write-downs in connection with the ongoing restructuring of the group and the drop in earnings at the investment bank meant a loss of CHF 7.29 billion for the crisis-ridden major Swiss bank, as the institute announced.
The last time Credit Suisse lost more money was at the height of the international financial crisis: in 2008, losses totaled CHF 8.2 billion.
In view of the doubts about the financial condition of the bank in the fall, customers had withdrawn CHF 110.5 billion net in the final quarter.
At the end of the year, the bank was only managing assets of around CHF 1.29 trillion.
The bank continues to take measures to win back customer funds, Credit Suisse was combative.
But the lower customer deposits and assets under management are expected to result in a decline in net interest income and recurring commissions and fees.
This should result in a loss for the core millionaires and billionaires business in the first quarter of 2023.
Credit Suisse also warned that the negative earnings impact of the announced exit from parts of the investment banking business and restructuring costs could result in a significant pre-tax loss for the bank in 2023.
For the second largest Swiss bank, it is now the fifth quarter in a row in the red.
The background is a series of scandals and mistakes in risk management.
For example, there was wild speculation about the future of the bank on social networks in October.
In the meantime, the situation has calmed down somewhat, but the default insurance for Credit Suisse bonds still includes a substantial risk premium and makes financing the institute more expensive.
The sluggish business and negative reports also scared off the customers.
Focus on wealth management for the super rich
The investment bank division in particular had also suffered large losses in recent years.
Here alone, the minus totaled 2.8 billion francs in 2022.
Accordingly, the new boss Ulrich Körner is also starting with reforms here.
By the end of October, the bank had finally said goodbye to its goal of playing at the forefront in investment banking.
Former McKinsey consultant Körner announced a radical cure including an exit from large parts of this business and the reduction of a total of 9000 jobs.
Large parts of the business with takeover advice and the placement of bonds are to be outsourced to the subsidiary Credit Suisse First Boston (CSFB) and, according to insiders, going public as an independent company in 2024 or 2025.
Wall Street veteran and former Credit Suisse board member Michael Klein is scheduled to head CSFB.
Credit Suisse now wants to buy his consulting boutique M. Klein & Co for $175 million and bring it into CSFB.
As a core element of Körner's restructuring - the third since 2015 - wealth management for the rich and super-rich is to be given even greater importance.
But this business is also ailing, with a loss of CHF 155 million in the fourth quarter.
Apr/Reuters