Credit Suisse said that its performance for the reported period was impacted by the planned merger with UBS, along with significant deposit and net asset outflows, and assured that it will work together with UBS to close the transaction in a timely manner
Credit Suisse headquarters in Zurich, Switzerland. (Credit: Ank Kumar/Wikipedia)
Credit Suisse has reported a net income of CHF12.43m ($14.02bn) for the quarter ended 31 March 2023, compared to a loss of CHF273m ($308m) for the same period of the previous year.
The Swiss investment bank reported net revenues of CHF18.46bn for the first quarter (Q1) of 2023, a 319% rise compared to CHF4.41bn for the respective quarter in 2022.
The company reported total operating expenses of CHF5.62bn for Q1 2023, a 14% rise compared to CHF4.95bn for the same quarter of the previous year.
Its pre-tax income for the reported period was CHF12.76bn, compared to a loss of CHF428m for the corresponding quarter in 2022.
Credit Suisse said that its performance for the reported period was impacted by its planned merger with UBS, along with significant deposit and net asset outflows.
Credit Suisse stated: “Credit Suisse experienced significant net asset outflows, in particular in the second half of March 2023. These outflows have moderated but have not yet reversed as of April 24, 2023. For 1Q23, Credit Suisse reported net asset outflows of CHF61.2bn.
“Deposit outflows represented 57% of Wealth Management (WM) and Swiss Bank (SB) net asset outflows in 1Q23. As of the end of 1Q23, assets under management (AuM) of CHF1.3 trillion decreased by CHF 41bn compared to the end of 4Q22.”
The investment bank’s Wealth Management business reported net revenues of CHF893m for Q1 2023, a 33% decline compared to CHF1.342bn for the same quarter in 2022.
Its Swiss Bank unit reported net revenues of CHF973m, a 15% decrease compared to CHF1.14bn for the respective period of the previous year.
The company’s Asset Management arm reported net revenues of CHF187m for Q1 2023, a 45% decline compared to CHF339m for the same quarter of 2022.
Its Investment Bank reported net revenues of CHF1.01bn for Q1 2023, a 37% decrease compared to CHF1.60bn for the corresponding quarter of the previous year.
The company’s Capital Release Unit reported net revenues of CHF345m for Q1 2023, an 81% rise compared to CHF191m for the same period in 2022.