Credit Suisse Group AG shares tumbled in Wednesday morning trading after the bank said asset outflows at its wealth-management business would lead to a fifth consecutive quarterly loss.



at 0830 GMT were down 4.9% to CHF3.66.

The Swiss lender said it expects to post a loss before taxes of around 1.5 billion Swiss francs ($1.58 billion) in the fourth quarter, after lower deposits and assets under management led to reduced commissions and fees.

The bank, Switzerland’s second-largest by assets, said that it net-asset outflows in the quarter to Nov. 11 were around 6%, or $88.3 billion of its total $1.47 trillion assets under management.

At the bank’s wealth-management arm, its key business serving the world’s rich, customers removed $66.7 billion.

It came after the Zurich-based company experienced deposit and net-asset outflows in the first two weeks of October, it said, after social-media reports and a spike in credit-default swaps caused a frenzy over the bank’s financial position.

The bank said the outflows led its liquidity to fall below some local-level legal requirements, but it maintained its required group-level liquidity and funding ratios at all times.

Write to Ed Frankl at [email protected]

Source link

You May Also Like

Today in History: October 9, Obama wins Nobel Peace Prize

Today in History Today is Sunday, Oct. 9, the 282nd day of…

The Webb Telescope’s New ‘Pillars of Creation’ Picture Is Absolutely Dazzling

Few people were paying much attention to the doings at the Space…

Katie Hobbs projected to beat Kari Lake for Ariz. governor, in Trump’s latest midterm loss

PHOENIX — Democrat Katie Hobbs is projected to win her race against…

Ukrainian military praises women fighters: “Victory’s name is female”

Ukraine’s defense ministry praised women fighters on Saturday who have helped defeat…

VP Harris to visit, support Philippine island amid sea feud

MANILA, Philippines — Vice President Kamala Harris would underscore America’s commitment to…

What to know about drinking at the World Cup

There’s always a palpable buzz for the World Cup. The quadrennial tournament…