Credit Suisse will no longer get out of control this year – on the contrary: hours before its extraordinary general meeting, the big bank announced how bad the bank had been and expected another billion in losses in the last quarter. This will be the fifth consecutive quarter loss.
Specifically, it can go up to minus 1.5 billion francs before tax. The reason is the difficult market conditions and the ongoing losses in the investment bank. What the bank has to worry about: Customers keep avoiding CS.
Greater outflow of client funds
Although not as much as in the first two weeks of October, capital outflows in asset management have not stopped yet. Overall, group-level capital outflows amounted to approximately 6 percent of assets under management as of November 11, according to the CS statement. Only in the Swiss bank the situation has almost stabilized, the loss of client funds was one percent.
The group will continue its strategic transformation plan that it started in October. In the fourth quarter, more restructuring costs of about 250 million francs are now expected. Against this background, it becomes clear once again how urgently the bank is dependent on the four billion francs from the capital increase. Bank shareholders will take decisions at the extraordinary general meeting starting at 10:30 today.