Credit Suisse faced $69B in Q1 outflows, more than UBS market cap

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Credit Suisse faced a staggering $69 billion of outflows in the first quarter, an amount that eclipses UBS's market cap

for $3.25 billion in an emergency rescue deal brokered by the Swiss government as the latter faced a crisis of confidence after its biggest investor, the Saudi National Bank, said it wouldn't be extending additional funding support.

The Swiss bank said it experienced significant net asset outflows during the second half of March. And while the outflows have moderated, they haven't reversed entirely, according to theCredit Suisse's highly regarded wealth-management arm saw $53 billion of net outflows during the January-March period, and that will likely lead to a"substantial loss" for the division in the current quarter, the bank said.

"Deposit outflows represented 57% of Wealth Management and Swiss Bank net asset outflows in 1Q23," per the release. "In the second half of March 2023, Credit Suisse experienced significant withdrawals of cash deposits as well as non-renewal of maturing time deposits. Customer deposits declined by CHF 67 bn in 1Q23. These outflows, which were most acute in the days immediately preceding and following the announcement of the merger, stabilized to much lower levels, but had not yet reversed as of April 24, 2023," the bank added.

 

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