Credit Suisse continues to suffer even after UBS has promised to buy out the company.
UBS and Credit Suisse agreed in late March to buy each other for $3.2 billion after Swiss government intervention. Credit Suisse's latest results show that this wasn't enough time for the company to have a last quarter of misery.
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Credit Suisse said Monday that between January and March, assets worth a total of 61.2 billion Swiss Francs ($68.3 billion) had left the bank. This is likely to be one of its last quarter results. Credit Suisse reported "significant" withdrawals in the second half March of its cash deposits, amounting to $75 billion.
Credit Suisse noted in a press release that "these outflows were at their highest levels immediately before and after the announcement of the merger. They have since stabilized, but they still had not reversed by April 24, 2023."
UBS is in trouble as outflows are continuing. Thomas Hallett of KBW, cited by Reuters, said that Credit Suisse's revenue generation may be severely damaged. "The deal could remain a drag on UBS results unless a more comprehensive restructuring plan is announced."
564 billion dollars: The assets managed by Credit Suisse’s flagship wealth division in the first three months of 2023, down from $794 billion one year ago
Credit Suisse's net borrowings at the end of March, after $67 billion of repayments. Credit Suisse made additional repayments of 11.2 billion dollars between March 31 and 24.
UBS pays Credit Suisse $3.2 billion. The transaction is expected to be completed before the end of this year.
UBS estimates that the cost savings from this deal will be $8 billion by 2027. Most of the $6 billion will likely be generated by reducing headcount in both firms' operations. UBS and Credit Suisse each had approximately 74,000 employees at the time of merger. There have not been any job cuts announced.
Christian Bluhm was to pass the reins over to Damien Vogel as the chief risk officer of the UBS Group on May 1, 2018. The switch has not taken place as planned. UBS announced today (April 24, 2014) that Bluhm had agreed to stay in his position "for a foreseeable future". Bluhm is the UBS Group's point person for the Credit Suisse group, which represents a large ocean of risks.
March 2021 - Greensill Capital fails. This British financial services firm focuses on supply chain financing and accounts receivable finance. Credit Suisse clients lose around $3 billion.
Credit Suisse will be hit by a loss of $4.7 billion in April 2021 due to the collapse of US hedge fund Archegos Capital. Credit Suisse provided brokerage services for Archegos Capital. In the aftermath, at least seven Swiss executives are fired by the bank.
Antonio Horta Osorio is forced to step down as chairman of Credit Suisse in January 2022 after violating the covid-19 quarantine regulations twice.
Credit Suisse faces charges in February 2022 for failing to stop a Bulgarian criminal ring from laundering cocaine-related money. Four months later, the Swiss court found the company guilty of the crime and ordered it to pay the $22 million fine in the first criminal trial against one of the country's major banks.
Leaked data from 18,000 Credit Suisse accounts that held more than $110 billion in assets reveals some dubious accountholders, including people who are involved in human and drug trafficking as well as torture.
In March 2022, US lawmakers begin investigating Credit Suisse for compliance with sanctions against Russian Oligarchs after Russia's invasion in Ukraine.
Credit Suisse reports its biggest loss since 15 years in February 2023. $7,9 billion in 2022 compared to the $8.9 in 2008 during the financial crisis. This poor performance follows on the heels of record withdrawals.
March 2023: After the collapse of Silicon Valley Bank and Signature Bank in the US, all eyes turn to scandal-ridden Credit Suisse. It sees an increase in panic withdrawals. Credit Suisse announces a major overhaul but its biggest investor, Saudi Natural Bank is unwilling to invest any more money. Swiss authorities announce that UBS will buy Credit Suisse at the halfway point of this month. Credit Suisse confirms that UBS will survive the closing of the merger.
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