Lost your password?
Don't have an account? Sign Up

Credit Suisse Warns of $1.6 Billion Loss!

Credit Suisse Group AG warned it would lose around $1.6 billion in the fourth quarter

As many customers have already  pulled their investments and deposits over concerns about the bank’s financial health. The reduction of customer assets means, Credit Suisse has less money to manage and earns less in fees.

Tweet on the latest from Credit Suisse

FactSet Chart on the Credit Suisse stock

Credit Suisse Stock Falls as Outflows Prompt Warning of $1.6 Billion Loss

$88.3 BILLION That’s how much clients pulled from Credit Suisse between Sept. 30 and Nov. 11. That prompted the Swiss bank, which is midway through a sweeping restructuring, to warn Wednesday that it was headed for a roughly $1.6 billion quarterly loss.

The shares had fallen more sharply in early trading, but pared losses after the bank won shareholder approval Wednesday to raise more than $4 billion in new stock.

Credit Suisse in late October said that a social-media frenzy around its finances was causing large outflows. The bank typically attracts at least $30 billion in net new assets in a year and hasn’t posted an annual net outflow since 2008, according to its filings.

Analysts at JPMorgan said the outflows and the anticipated loss were much worse than they expected. The bank “is not out of the woods yet in terms of stabilizing the franchise,” they said.

Credit Suisse’s stock fell 6.1% Wednesday to end at 3.62 Swiss francs, a record closing low. The shares are down 59% this year, according to FactSet.

Image:Credit Suisse