Jakarta –
Swiss credit big loss in the last three months of the year. This is because wealthy clients have started turning away from the Swiss banking giant.
Credit Suisse estimates a loss of USD 1.58 billion or IDR 24.65 trillion (exchange rate of IDR 15,600) in Q4 2022. Wealthy clients made massive withdrawals which caused a huge drop in liquidity.
Credit Suisse chairman Axel Lehmann said shareholders had accepted the plan to raise 4 billion Swiss francs. This is a positive step in building a new Credit Suisse.
“We are fully focused on implementing our strategic priorities,” said Lehmann Reuters, Thursday (11/24/2022). He promised that Credit Suisse’s future would be even brighter and more profitable.
Swiss credit it said there had been a 6% asset outflow at the end of the third quarter of 2022. The Wealth Management division, which serves wealthy clients, said outflows have improved, but have not reversed.
Vontobel analysts estimate the size of the recall at around 84 billion Swiss francs. As a result, banks are forced to reserve liquidity buffers, slipping below certain minimum regulatory requirements.
“Wealth Management’s massive net outflow is very worrying, especially since it has not yet reversed,” said Andreas Venditti of Vontobel.
Venditti said the bank’s liquidity adequacy ratio (LCR) as a financial metric fell massively towards 100%. Swiss credit said the average daily LCR for Q4-2022 was 140%.
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