Saturday, 23 Sep, 2023


£55bn withdrawn from Credit Suisse before collapse

Business Desk |
Update: 2023-04-24 12:19:44
£55bn withdrawn from Credit Suisse before collapse [photo collected]

Collapsed banking giant Credit Suisse says 61.2bn Swiss francs (£55.2bn; $68.6bn) left the bank in the first three months of the year.

The announcement gives an insight into the scale of the bank run that caused the 167-year-old lender to fail and triggered its state-backed rescue.

It came as the bank reported what are expected to be its last ever financial results.

Its forced sale to rival Swiss bank UBS is expected to be completed soon.

Credit Suisse's flagship wealth management division saw the amount of assets it managed drop to 502.5bn francs at the end of March, almost 29% lower than the same period last year, Credit Suisse said in a statement.

"These outflows have moderated but have not yet reversed as of April 24, 2023," it added.

Credit Suisse clients started pulling money out of the bank after it was caught up in the market turmoil that followed the collapses of Silicon Valley Bank and Signature Bank in the US in March.

In Switzerland, authorities put together a rescue package for Credit Suisse. It included more than 200bn francs of financial guarantees and saw UBS agree to take over Credit Suisse.

Credit Suisse had been loss-making and had faced a string of problems in recent years, including money laundering charges.

It reported a loss of 7.3bn Swiss francs in 2022 - its worst year since the financial crisis of 2008 - and had warned it did not expect to be profitable until 2024.

Source: BBC

BDST: 1219 HRS, APR 24, 2023

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