Axel Lehmann, chairman of Swiss bank Credit Suisse Group AG, said the large outflows of client assets have all but stopped. Outflow concerns drove the bank’s share price to an all-time low.
Lehmann also said the bank’s liquidity is improving. Share prices, which had fallen for the longest 13 business days in history to the day before, suddenly rebounded, temporarily rising 10.2% on the Zurich market on the 2nd.
Stability speculation has sprung up around Credit Suisse, with outflows of about 84 billion francs (about 12 trillion yen) since the start of the fourth quarter (October-December), the bank said last month. But Lehmann said in an interview with Bloomberg Television on Wednesday that the leak had “basically stopped.” Most happened in October and some client assets have since moved back to Switzerland, he said.
Axel Lehmann, President of Credit Suisse
Source: Bloomberg
“I’ve talked to customers and I understand there will be an influx in the future,” he said. “Some of it is already happening. So we expect to continue reaching customers. It may take some time.” , but customer resources returned and we are back to normal.”
of Credit Suisseoutflow of goodsshocked investors, with its core business, asset management, accounting for around 10% of total assets under management. The bank urged investors to participate in the capital increase, but the long-term decline brought the share price closer to the offer price for the subscription of the capital increase.
Credit Suisse shares continue to fall, approaching the offer price for subscription by shareholders
Lehmann said he has regular dialogue with investors. At this level of titles, it’s going to be a tough debate.”
The market appreciated this interview. Credit Suisse shares were trading 9.9% higher at CHF 2.96 on Wednesday at 14:08 Zurich time, narrowing the year-to-date decline to 65%. In its capital increase plan announced in October, the bank granted preemptive rights to existing shareholders and set the exercise price at CHF 2.52 per share.
“While the market is trying to drive the share price down, the shareholders are willing to fully underwrite the capital raise and it will be successful,” he said.
Original title:Credit Suisse chairman Lehmann says outflows mostly stalled (3)(extract)
Credit Suisse stock expected to end losing streak after outflow stops (1)(extract)
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