Beleaguered Swiss banking giant Credit Suisse on Thursday revealed that wealthy clients pulled 92.7 billion francs ($101 billion) out of the bank in the fourth quarter.
Credit Suisse said two-thirds of the net asset outflows were in October, at a time of intense social-media speculation around its ability to survive. Credit Suisse has since announced a sweeping restructuring plan.
Other Swiss banks saw big inflows — UBS
UBS,
for instance, reported $10.8 billion in net new money during the fourth quarter, and Julius Baer
BAER,
recorded inflows of 9 billion francs ($9.8 billion).
Credit Suisse posted the inflow data alongside its fourth-quarter results, in which it recorded a loss for the fifth straight quarter.
Credit Suisse posted a loss of 1.39 billion francs on revenue of 3.06 billion francs, slightly worse than the company-compiled consensus for a 1.34 billion francs loss on revenue of 3.15 billion francs.
The Swiss lender also announced it was buying Michael Klein’s boutique Klein & Co. for $175 million, which it plans to fold into its investment-banking unit CS First Boston, which Klein will lead. The bank said it’s on track to close the previously announced sale of its securitized products group to Apollo Global Management during the first half of the year.
Credit Suisse shares slumped 6% in early Zurich trade, and have dropped 62% over the last 52 weeks.
Source: https://www.marketwatch.com/story/wealthy-clients-pulled-more-than-100-billion-from-credit-suisse-in-the-fourth-quarter-11675934028?siteid=yhoof2&yptr=yahoo