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Credit Suisse expects Q4 pre-tax loss to top $1.6 billion (NYSE:CS)


Credit Suisse entrance.  bank building.

Michael Derrer Fuchs

As Credit Suisse (NYSE:CS) implements the Investment Bank restructuring plan and cuts costs, the bank’s pre-tax loss in Q4 could reach ~1.5 billion CHF ($1.6 billion), due to costs incurred when implementing plans and assets cash outflow in recent weeks, the company speak Wednesday.

“The Group’s actual results will depend on a number of factors including the performance of the Investment Bank for the remainder of the quarter, continued exit from non-core positions, any deterioration in and the results of a number of other actions, including the potential sale of real estate,” it said.

The Swiss lender had previously revealed that it began experiencing deposit and net asset outflows in the first two weeks of October at a rate “significantly in excess of the rate incurred in the third quarter of 2018. 2022.” As of November 11, 2022, net asset outflows were ~6% of assets under management at the end of Q3 2022.

Investment Banking has been hit by an industry-wide slowdown in capital markets, reduced activity in the sales and trading businesses, exacerbation of the usual seasonal decline and underperformance. relative to the Group. Meanwhile, “client activity remains subdued in the Swiss Banking and Wealth Management divisions, and the bank expects these market conditions to continue in the coming months,” it said. more.

Credit Suisse (CS) tell its major restructuring plan on October 27, including cutting its cost base by 15%, reducing headcount by 5%, selling the bulk of its Securities Products Group to Apollo Global Management, splitting Investment Banking into three units, and raised new capital worth CHF 4 billion.

The company’s US depository shares slip 3.2% in a U.S. premarket transaction.

Before that, Credit Suisse (CS) shareholders approved the bank’s report on the issuance 2.23 billion new shares in capital raise

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