Credit Suisse Loses $68 Billion In Assets

The troubles affecting the global banking sector may have faded into the background, but that does not mean the effects of recent disruptions are no longer evident. Credit Suisse said on Monday that $68 billion in assets have left the bank in the first quarter of 2023. Withdrawals are continuing, in a stark warning to new Credit Suisse owner UBS Group AG.

Customer deposits also declined by $75 billion during the quarter, and there has been a marked reluctance by clients to renew deposits with a set maturity date. The largest outflows originated from the firm’s embattled Wealth Management division, and this has held true across several geographical locations.

Credit Suisse, the 167-year-old bank, will cease to exist in the coming months when its government-engineered purchase by rival UBS is expected to be finalized. Shares of Credit Suisse were holding steady in early trading, even though many analysts contend that the brand is so damaged it could only be turned around in a deep restructuring strategy by UBS.

Clients started rapidly abandoning scandal-dogged Credit Suisse after it was caught up in market turmoil unleashed by the collapse of US lenders Silicon Valley Bank and Signature Bank.

Credit Suisse has suffered heavy client losses since trouble first began, and now many jobs will be cut, with UBS executives pledging to deliver $8 billion in cost reductions by 2027. Of this total, $6 billion would come from cutting the number of full-time employees across Credit Suisse’s operations.