Credit Suisse said on Monday that customers withdrew nearly $69 billion in the first quarter, underscoring the spiraling problems the Swiss bank has faced.
In its final financial report as an independent company, Credit Suisse — which lost 1.3 billion Swiss francs, or $1.46 billion, in the first three months of the year — said it suffered “Significant net asset outflows“Especially in the second half of March.
Its shares tumbled as investors feared for the health of the 167-year-old lender, forcing the bank to borrow billions from the Swiss central bank to boost confidence in its finances. Shareholders have been on edge about Credit Suisse for months, worried about its credibility amid losses and a series of scandals and financial missteps.
But the Swiss government eventually forced the company to sell to UBS for $3.2 billion. The transaction – the highest-profile banking deal since the 2008 financial crisis – was one of the most drastic attempts to calm markets amid turmoil caused by the collapse of a Silicon Valley bank in mid-March.
While client withdrawals have eased at Credit Suisse, they have yet to reverse, with UBS cutting jobs as it prepares to absorb its stricken rival. Credit Suisse, meanwhile, still has 108 billion Swiss francs worth of debt from the Swiss National Bank, although it repaid 60 billion in the quarter.
In Monday’s announcement, Credit Suisse also said it had closed a $175 million deal to buy the boutique investment bank of longtime deal maker and former board member Michael Klein. Credit Suisse’s investment bank Mr. The acquisition was part of a complex financial transformation plan that included merging with Cleanse and eventually spinning off the combined business.