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Credit Suisse, together with its new parent company UBS, presented its figures for the second quarter of 2023 at the end of August. CS’s definitive semi-annual report will be published this Friday. The adjusted loss before tax for January-June was 3.5 billion francs, following a loss of 301 million in the previous year. In the second quarter alone, adjusted losses amounted to 2.1 billion francs.
At the UBS media conference at the end of August, it was said that fund outflow had now “largely stabilized”. Although there were more asset outflows from the Asset Management segment, these continued to slow down.
In addition, CS made a total net provision of 1.5 billion for legal disputes during the reporting period. Additionally, there was a goodwill impairment of 2.3 billion francs, mainly in the areas of asset management and asset management.
More losses expected
UBS wants to sell non-core areas of former Credit Suisse. This will burn huge holes in the new mother’s coffers in the third quarter of 2023. Management decided to divest itself of certain loan portfolios in the third quarter.
This emerges from Credit Suisse’s annual report for the first half of 2023, published on Friday. The loan portfolios are held in the newly created “bad bank” called “Non-Core and Legacy” (NCL). Subsequent reclassification of those loans would likely result in a loss of about $1.6 billion in the third quarter, according to the annual report.
It was also decided to terminate “certain management agreements”. This would result in a loss of up to $0.6 billion in the third quarter, the bank wrote. (SDA/kae)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
