Credit Suisse Group AG said it has launched a large-scale campaign to win back customers’ deposits, but the outflows have continued this month.
The bank saw an unprecedented outflow of client money in early October last year and has yet to reverse the trend as of this month, according to its annual report released Wednesday. However, outflows have stabilized at a fairly low level. It also admitted that it had drawn down its liquidity buffer following the outflow of funds.
A spate of scandals has challenged the bank’s ability to manage risk and has struggled to win the trust of clients, investors and regulators.
Bloomberg reported earlier this month that the bank offers deposit rates well above those of its competitors. In Asia, the three-month interest rate has been raised to as high as 6.5% on new deposits of $5 million or more, according to people familiar with the matter.
Credit Suisse Desperate to Restore Client Assets
CEO Ulrich Kellner said at an investor conference hosted by Morgan Stanley on the 14th, “I want to regain everything I lost.” expand,” he said.
He also said in an interview with Bloomberg Television that customer money flowed in on Monday when the market was in turmoil.
The bank had about CHF 84 billion (about ¥12.36 trillion) in client funds in its core wealth management business last November.announced to have leaked. Earlier in December, chairman Axel Lehmann said the outflow had “basically” stopped, but in October-December it totaled CHF110.5 billion.
Mammoth Outflows
Credit Suisse sees historic levels of clients pulling their money
Source: Bloomberg Intelligence and company financial statements.
Original title:Credit Suisse Client Outflows Continue, But at Lower Levels (1)Credit Suisse CEO Says Firm Saw Client Inflows on Monday (excerpt)
