Credit Suisse said on Monday that customers had withdrawn nearly $69 billion in the first quarter, underscoring mounting problems at the ailing Swiss bank, which forced a fire sale to its arch-rival UBS in March.
In its final financial report as an independent company, Credit Suisse, which lost 1.3 billion Swiss francs or $1.46 billion in the first three months of the year, said it suffered “significant net asset outflows,” particularly in the second half of the year have march.
These came as investors feared for the health of the struggling 167-year-old lender, its shares plummeted and forced the bank to borrow billions from Switzerland’s central bank to boost confidence in its finances. Shareholders have been jittery about Credit Suisse for months, concerned about its ability to survive amid losses and a spate of scandals and financial missteps.
But the Swiss government eventually forced the company to sell itself to UBS for $3.2 billion. The deal — the most sensational bank deal since the 2008 financial crisis — was one of the most drastic efforts to calm markets amid the turmoil sparked by the collapse of Silicon Valley Bank in mid-March.
While client withdrawals at Credit Suisse have since slowed, they have yet to reverse, suggesting UBS is busy preparing to take over its struggling competitor. Meanwhile, Credit Suisse still owes 108 billion Swiss francs to the Swiss National Bank, despite repaying 60 billion in the quarter.
In Monday’s announcement, Credit Suisse also said it had completed a $175 million deal to buy the boutique investment bank of Michael Klein, a longtime dealmaker and former board member. This acquisition was part of a complicated financial turnaround plan that involved merging Credit Suisse’s investment bank with Mr. Klein’s, eventually spinning off the combined business.