Credit Suisse (CS:NYE) Loses $68 Billion in Q1

CS:CA Ratings by Stock Target Advisor

Credit Suisse loses $68 Billion in Quarter

Credit Suisse, one of Switzerland’s largest banks, has said its 61 billion Swiss francs ($68 billion) in assets left the bank in the first quarter, with outflows continuing, indicating the challenge faced by its rival UBS Group in rescuing the bank. Customer deposits declined by 67 billion francs in the quarter, and the bank noted that many matured time deposits had not been renewed. The majority of the money leaving the bank was from its wealth management division and occurred across all regions. Credit Suisse’s ability to generate revenue appeared to be so damaged that the deal could remain a drag on UBS’s operating results unless a deeper restructuring plan is announced, according to an analyst. Assets managed by the flagship wealth management division plunged 29% to 502.5 billion francs at the end of March from the same period last year. In the rescue package rushed together by Swiss authorities, UBS agreed to take over Credit Suisse for 3 billion francs in stock and assume up to 5 billion francs in losses. The deal also includes 200 billion francs in state financial guarantees. Credit Suisse said that at the end of the first quarter, it had 108 billion Swiss francs of net borrowings from the central bank after paying back 60 billion. Since then, it has paid back another 10 billion. The bank reported a pre-tax profit of 12.8 billion francs, largely due to the controversial write-down to zero of AT1 bonds and a gain from the sale of a big portion of its Securitized Products Group to Apollo Global Management.

CS Stock Forecast & Analysis

According to eight analysts, the average target price for Credit Suisse Group’s stock over the next 12 months is $3.50. The average analyst rating for the stock is “Hold,” while Stock Target Advisor’s own analysis is “Bearish” based on 10 negative and two positive signals. Credit Suisse Group’s stock price at the last close was $0.89, which represents a -7.29% change over the past week, a +2.30% change over the past month, and a -87.60% change over the last year.

 

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