Geneva, Feb 9 (AFP/APP): Credit Suisse on Thursday posted its biggest annual loss since the 2008 financial crisis and the scandal-plagued Swiss banking giant expects to fall deeper into the red in 2023.
Switzerland’s second-biggest bank, which unveiled a dramatic restructuring plan in October aimed at stopping the rot, reported a net loss of 7.3 billion Swiss francs ($7.9 billion) for 2022.
The Zurich-based lender had waved goodbye to more than eight billion Swiss francs during the global financial crisis 15 years ago.
Citing the impact from restructuring charges and its exit from non-core businesses, Credit Suisse said in a statement that it “would also expect the group to report a substantial loss before taxes in 2023”.
Those restructuring costs are estimated at around 1.6 billion Swiss francs this year and around one billion francs in 2024.
In the last quarter, its net loss attributable to shareholders amounted to nearly 1.4 billion Swiss francs, which is slightly better than had been feared.
In November, the bank issued a profit warning on restructuring charges, lower activity in the capital markets and large client withdrawals, saying it expected a loss of up to 1.5 billion Swiss francs.
Credit Suisse recorded net asset outflows of 110.5 billion Swiss francs in the fourth quarter of last year alone.
“We’ve seen a reversal in January,” chief financial officer Dixit Joshi told reporters, explaining that capital outflows were mainly concentrated in October but slowed in December.
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