MADRID, 24 Abr. (EUROPA PRESS) –
Credit Suisse, an entity that had to be rescued on March 19 through its acquisition by its rival UBS in an urgent merger orchestrated together with the Swiss authorities, has reported on Monday that in the first quarter of the year it registered the departure of 67,000 million Swiss francs (68.3 billion euros) in deposits.
In fact, the entity has recognized that the ‘hemorrhage’ of deposits was significant during the second half of March, with the outflow of money from the bank becoming more intense “in the days immediately before and after the announcement of the merger”, stabilizing at “much lower” levels, although they had not yet reversed as of April 24, 2023.
In the whole of the first three months of 2023, Credit Suisse has indicated that it “experienced significant withdrawals of cash deposits, as well as the non-renewal of matured term deposits”, estimating the decrease in customer deposits at 67,000 million Swiss francs.
In this way, the Swiss entity has revealed significant net outflows of assets, particularly in the second half of March 2023, adding that “these outflows moderated but have not yet been reversed” and estimating the total net outflow of assets in 61,200 million francs (62,387 million euros).
At the end of the first quarter of 2023, Credit Suisse’s assets under management decreased by 41,000 million Swiss francs (41,795 million euros) compared to the last quarter of 2022, down to 1.3 trillion francs (1.32 trillion of euros).
However, despite the situation that led to its rescue, the Credit Suisse accounts for the first quarter of 2023 closed with an attributable net profit of 12,432 million Swiss francs (12,673 million euros), compared to the ‘red numbers’ ‘ of 273 million francs (278 million euros) accounted for between January and March 2022.
This result mainly reflects the effect of the redemption of 15,007 million Swiss francs (15,298 million euros) in additional capital AT1 bonds, as ordered by the Swiss Financial Market Supervisory Authority (FINMA) under the plan to the merger of the entity with UBS.
Credit Suisse’s pre-tax result also recorded an extraordinary positive effect related to a gain of 700 million Swiss francs (713 million euros) from the sale of a significant part of the securitized products group (SPG) to managed entities and funds by affiliates of Apollo Global Management.
Likewise, the Group’s Common Equity Tier 1 (CET1) ratio increased to 20.3% at the end of the first quarter, compared to 14.1% in the previous quarter, after the redemption of the AT1 capital notes ordered by END.
“Credit Suisse will work closely with UBS to ensure that the transaction is completed in a timely manner. The consummation of the merger remains subject to customary closing conditions,” the entity said in presentation of its accounts.
