Credit Suisse bank lost 68.3 billion euros in deposits during the first quarter of 2023

FThe Credit Suisse bank lost 68.3 billion euros in deposits during the first quarter of 2023. (REUTERS / Arnd Wiegmann)

The Swiss bank Credit Suisse, acquired by its rival UBS, reported Monday that in the first quarter of 2023 it suffered a massive reduction in deposits worth 67,000 million francs (68,300 million euros) due to significant withdrawals during its crisis, which almost bankrupts him.

In its quarterly report published earlier this week, the bank admitted that the liquidity squeeze “was particularly acute in the days immediately before and after the merger announcement” (with UBS).

“They stabilized at much lower levels, but to this day the situation has not yet been reversed,” admitted the Zurich entity, which in 2022 had already suffered a liquidity outflow of 123,200 million francs (125,000 million euros). which contributed to a huge crisis of confidence that led to the sale to UBS.

Credit Suisse, which still operates as an independent entity until its merger is complete, earned 12.432 million Swiss francs (12.600 million euros) in the first quarter, compared to a loss of 7.293 million Swiss francs (7.400 million euros) registered in 2022.

Credit Suisse said it is continuing to work with UBS to ensure the merger “is completed on time.” (REUTERS/Denis Balibouse)

The benefit, despite the serious crisis it is facing, is explained by the cancellation of the AT1 bonds associated with the bank that the Swiss authorities ordered on the day of the merger, which reduced to zero obligations that totaled, according to the report, 15,000 million francs (15,300 million euros), reported the entity.

This order has led numerous bondholders to file complaints against the Swiss authorities for the losses suffered, or to announce their intention to do so, both inside and outside the Swiss country.

Another extraordinary income linked to the strong profits reported, according to the report, was the sale of a significant part of Credit Suisse’s securitized products to the New York firm Apollo, as part of the restructuring process that the entity attempted to get out of its crisis.

Credit Suisse reflected in its quarterly report revenue of 18,467 million Swiss francs or 18,800 million euros (four times more than in the same period of 2022), compared to operating expenses of only 5,620 million Swiss francs (5,300 million euros ).

Credit Suisse presented its first quarterly report after the crisis that led to the sale. (REUTERS/Denis Balibouse)

Excluding certain extraordinary operations, the bank had adjusted losses of 1,316 million francs (1,340 million euros) in the first quarter of 2023.

The bank’s total assets, according to the report, fell in the January-March period to 540,291 million francs (551,000 million euros), 27% less than a year ago.

Credit Suisse indicated in this report that it continues to work with UBS to ensure that the merger “is completed on time”, although it stressed that this is subject to certain business closing operations that both entities have previously indicated could take months.

(With information from EFE)

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