Benzinga -
- On Monday, Credit Suisse Group Inc (NYSE: CS) reported Q1 FY23 earnings, probably the final of its 167-year history.
- The longtime second-largest bank posted a profit of CHF 12.43 billion for Q1 of 2023.
- The profit resulted from the write-off of the AT1 bonds worth CHF 15 billion as part of its deal with UBS Group AG (NYSE: UBS).
- The Swiss bank saw CHF 61.2 billion withdrawn in the first quarter alone, 5% of the group's assets under management as of the end of Q1 2023.
- In the second half of March 2023, Credit Suisse experienced significant withdrawals of cash deposits as well as non-renewal of maturing time deposits.
- Also Read: UBS Executives Say Surprise Credit Suisse Acquisition Is a 'Major Challenge'
- Customer deposits declined by CHF 67 billion in 1Q23. These outflows, which were most acute in the days immediately preceding and following the announcement of the merger, stabilized at much lower levels but had not yet reversed as of April 24, 2023, the bank said.
- Deposit outflows represented 57% of the net asset outflows from Credit Suisse's wealth management unit and Swiss bank for the quarter.
- Credit Suisse's flagship wealth management division saw the Assets under management drop to CHF 502.5 billion at the end of March, almost 29% lower Y/Y.
- Price Action: CS shares are up 2.64% at $0.91 during the premarket session on the last check Monday.