(Bloomberg) — Credit Suisse Group AG fell to a new record low as investors weighed the impact of the massive withdrawals the bank reported this week and news that market rivals Asia’s key growth markets are benefiting from the Swiss firm’s troubles.
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The lender’s shares fell as much as 5% in Zurich on Friday after Vontobel cut its price target and said the company “urgently” needed to stem the outflow in its wealth management business. its core. The stock has fallen for nine straight days, its longest losing streak since 2014.
Credit Suisse announced on Wednesday that customers withdrew about 84 billion francs ($89 billion) in the first six weeks of the fourth quarter with no reversal in sight. Cash outflows are especially pronounced in the asset management unit, where they account for up to 10% of assets under management.
Rivals including UBS Group AG and Morgan Stanley are among the beneficiaries of that customer exodus, Bloomberg reported on Thursday, with both companies having significant new business in the US. Asia, a major growth market for wealth management. According to the Asian Private Banker’s 2021 rankings, UBS operates the largest private bank in Asia by assets, excluding mainland China, while Credit Suisse is the second largest.
Read more: Credit Suisse customers turn to UBS in Asia as more weight options are available
Andreas Venditti, an analyst at Vontobel, said he was “stunned” by the outflow and predicts Credit Suisse will lose again next year amid soaring funding costs. He lowered his share price target to 3.5 francs from 4 francs.
Shares fell 4.5% to 3.39 francs at 3:04 pm in Zurich.
(Updates share motion throughout.)
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