GENEVA (AFP) – Credit Suisse yesterday posted its biggest annual loss since the 2008 financial crisis and the scandal-plagued Swiss banking giant expects to fall deeper into the red in 2023.
Switzerland’s second-biggest bank, which unveiled a dramatic restructuring plan in October aimed at stopping the rot, reported a net loss of CHF7.3 billion (USD7.9 billion) for 2022.
The Zurich-based lender waved goodbye to over CHF8 billion during the global financial crisis 15 years ago.
Citing the impact from restructuring charges and its exit from non-core businesses, Credit Suisse said in a statement it “would also expect the group to report a substantial loss before taxes in 2023”.
Those restructuring costs are estimated at around CHF1.6 billion this year and around one billion francs in 2024.
In the last quarter, its net loss attributable to shareholders amounted to nearly CHF1.4 billion, which is slightly better than had been feared.
In November, the bank issued a profit warning on restructuring charges, lower activity in the capital markets and large client withdrawals, saying it expected a loss of up to CHF1.5 billion.
Credit Suisse recorded net asset outflows of CHF110.5 billion in the fourth quarter of last year alone.