Although the Credit Suisse share price has recovered somewhat over the past few days, in some cases the price losses have been dramatic. The stock is now under pressure again, falling below three francs on Tuesday morning. CS President Axel Lehmann (63) tries to reassure investors on the “Eco-Talk” program broadcast on SRF television: “Theoretically, the share cannot fall below CHF 2.52.”
Existing CS shareholders can buy new Credit Suisse shares at this price. These titles will be traded for the first time next Thursday. The reason for the theoretical lower limit: If very few old shareholders are interested in new CS shares, the bank syndicate that accompanies the capital increase will buy the shares at that price.
Not only is the price drop, but the fund outflow is also dramatic. Many customers have lost their trust in the bank. To date, CHF 85 billion has been paid in the third quarter. “The output has stabilized and even some funds have flowed back,” said Lehmann, avoiding the question of whether the sum of the outflows could exceed 100 billion francs. Funds came back, especially in Switzerland. Only a few customers would close their accounts completely and leave the bank.
2024 more positive numbers
The cash outflow was triggered by a social media storm that brought the bank to the brink of bankruptcy. “In a storm like this, people no longer have access to nearly rational arguments,” says Lehmannn. It is tragic that the fundamentals of the business are now slightly lower due to the outflow of funds.
For Lehmann, 2023 and 2024 are years of transformation and change. As a result, the bank will also make a loss next year. “From 2024 we should write more positive numbers again.” When asked if Kaspar Villiger (81) would waive his bonus, as he did at UBS, Lehmann referred to the annual report due in February. (co)