Credit Suisse has reported net asset outflows of $68 billion in the first quarter, with customers continuing to withdraw their funds even after the bank's state-engineered rescue by rival Swiss bank UBS. Although outflows have moderated, they have not yet reversed as of April 24, 2023. The bank has also experienced significant withdrawals of cash deposits and non-renewal of maturing time deposits, resulting in a decline of customer deposits by 67 billion Swiss francs. Credit Suisse's flagship wealth management division's assets also dropped to 502.5 billion francs at the end of March.
The bank's market turmoil was unleashed by the collapse of US lenders Silicon Valley Bank and Signature Bank, leading to a Swiss authorities rescue package, which saw UBS agreeing to take over Credit Suisse for 3 billion Swiss francs in stock and assume up to 5 billion francs in losses, including 200 billion francs in state financial guarantees. The termination of the planned $175 million acquisition of Michael Klein's investment banking business has also been agreed.
UBS's takeover of Credit Suisse is expected to be completed soon, and UBS plans to scale back Credit Suisse's investment bank. Credit Suisse's first-quarter losses were unexpected, and the bank has warned of further losses to come.
