Credit Suisse has registered net loss attributable to shareholders of CHF1.39bn ($1.5bn) in Q4 2022 as it continues to struggle with the reputational hit from a series of scandals.
It marks the bank’s fifth straight quarterly loss, compared with a loss of CHF2.09bn in Q4 2021.
This takes the bank’s full-year loss in 2022 to CHF7.3bn, which is said to its biggest annual loss since the 2008 financial meltdown.
The Zurich-based lender posted a loss of CHF1.65bn in 2021.
Credit Suisse is warning of another “substantial” full-year loss in 2023 before swinging back to profit in 2024.
Adjusted pre-tax loss was CHF1.02bn in the three months to December 2022, versus a profit of CHF328m a year ago, while reported pre-tax loss narrowed to CHF1.32bn from CHF1.66 bn.
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Net revenues plummeted 33% to CHF3.06bn from CHF4.58bn a year ago, while operating expenses dropped to CHF4.33bn from CHF6.27bn.
Assets under Management were CHF1.29tn at the end of last year, as against CHF1.61tn in the prior year.
Net outflows were CHF110.5bn in the October-December quarter, compared with CHF1.6bn in the same period a year earlier.
Annual outflows in 2022 reached CHF123.2bn, versus inflows of CHF30.9bn in 2021.
The Wealth Management unit of Credit Suisse saw pre-tax loss of CHF199m in Q4 2022 compared with CHF157m in the same quarter of 2021. Net revenues dipped 17% to CHF1.14bn.
In Investment Banking, pre-tax loss in Q4 was CHF1.46bn as against a loss of CHF1,99bn in the prior year. Net revenues slumped 73% year-on-year to CHF454m.
The bank is currently revamping its investment banking business, which includes spin-off of the capital markets and advisory unit under the CS First Boston brand.
Towards this end, Credit Suisse reached a $175m deal for the purchase of The Klein Group, the investment banking business of M. Klein & Co.
Michael Klein has been named CEO of Banking and CEO of the Americas, and designated CEO of CS First Boston.
Körner said: “2022 was a crucial year for Credit Suisse. We announced our strategic plan to create a simpler, more focused bank, built around client needs and since October we have been executing at pace. We successfully raised CHF ~4 billion in equity capital, accelerated the delivery of our ambitious cost targets, and are making strong progress on the radical restructuring of our Investment Bank.”