The collapse of SVB only makes the troubled bank's situation worse.
The Swiss
banking giant, Credit Suisse, has confirmed a yearly loss of CHF 7.3 billion in
a delayed report lodged in the United States. The filing was initially due to
appear last week, but its publication was postponed following the US Securities
and Exchange Commission (SEC) call regarding cash flow statements dating back
three years.
Credit Suisse Publishes
Delayed Financial Report
In its
latest regulatory filing, the Swiss lender highlights the "material weaknesses"
it has identified in its control and reporting processes over the past two
years, responding to questions from the US regulator from last week that led to
the delay in publication.
The
Zurich-based bank said on Tuesday that it intends to take steps to improve the
ineffective controls it currently has in place. However, the lender
acknowledged that the 2021 and 2022 statements fairly reflected information
about its financial health.
In addition, Credit
Suisse referred to the dynamic capital outflows seen in 2022, when assets
under management shrank by 20%. According to the institution, the dynamics of
the negative flows have been mitigated but "not yet reversed."
FINMA Monitors Credit
Suisse after SVB Collapse
The timing
of the US-based Silicon Valley Bank (SVB) collapse is arguably one of the worse
for Swiss Credit Suisse. The institution is struggling with its own problems,
and the panic caused by the bankruptcy of SVB has caused the Swiss bank's shares
to slide to new historic lows. To make matters worse, the cost of insuring the
giant's debt reached historic highs.
FINMA, the
local financial markets regulator, is keeping a close eye on the fortunes of
Credit Suisse as it is concerned about the potential risk of contagion to domestic
banks and insurers after the collapse of SVB as well as Signature Bank in recent
days.
In early
February, Credit Suisse reported a net loss of CHF 7.3 billion in 2022,
compared to analysts' CHF 6.53 billion forecasts. The results were confirmed in
a delayed report filed with the SEC on Tuesday.
The fourth
quarter results fell short of projections and were a nail in the lender's
coffin. The net loss amounted to CHF 1.4 billion, CHF 800 million higher than
was forecasted. The problems faced by the lender resulted in a total of CHF
110.5 billion of capital outflow in 2022. Total assets under management
amounted to CHF 1.3 trillion at the end of the year, falling 20% from a year
earlier.
Credit Suisse Under
Restructuration
Credit Suisse's
problems began to make headlines back in 2022 when its results for the third quarter
showed a net loss of CHF 3.8 billion. At the time, the bank cited the need for
a "radical restructuring" in which it planned to lay off up to 9,000
employees, raise $4 billion in fresh capital and establish CS First Boston as an
independent investment entity in the US.
The first job cuts started in January and affected positions in European investment banking.
Further reductions in this sector, but in the Japanese market, were reported last week.
"From
today, we are taking a series of decisive actions to re-focus Credit Suisse
around the needs of our clients and stakeholders," Körner promised in
October.
While
Credit Suisse's plans are ambitious, the market conditions are becoming less
favorable each week. As the banking giant tries to steer clear of regulatory
controversy, FINMA is wrapping up an investigation in the $10 billion 'Greensill' case. The latest banking sector problems triggered by
SVB's collapse certainly make additional restructuring difficult, and some experts
wonder whether the Swiss bank will find itself on the brink of insolvency soon.
The Swiss
banking giant, Credit Suisse, has confirmed a yearly loss of CHF 7.3 billion in
a delayed report lodged in the United States. The filing was initially due to
appear last week, but its publication was postponed following the US Securities
and Exchange Commission (SEC) call regarding cash flow statements dating back
three years.
Credit Suisse Publishes
Delayed Financial Report
In its
latest regulatory filing, the Swiss lender highlights the "material weaknesses"
it has identified in its control and reporting processes over the past two
years, responding to questions from the US regulator from last week that led to
the delay in publication.
The
Zurich-based bank said on Tuesday that it intends to take steps to improve the
ineffective controls it currently has in place. However, the lender
acknowledged that the 2021 and 2022 statements fairly reflected information
about its financial health.
In addition, Credit
Suisse referred to the dynamic capital outflows seen in 2022, when assets
under management shrank by 20%. According to the institution, the dynamics of
the negative flows have been mitigated but "not yet reversed."
FINMA Monitors Credit
Suisse after SVB Collapse
The timing
of the US-based Silicon Valley Bank (SVB) collapse is arguably one of the worse
for Swiss Credit Suisse. The institution is struggling with its own problems,
and the panic caused by the bankruptcy of SVB has caused the Swiss bank's shares
to slide to new historic lows. To make matters worse, the cost of insuring the
giant's debt reached historic highs.
FINMA, the
local financial markets regulator, is keeping a close eye on the fortunes of
Credit Suisse as it is concerned about the potential risk of contagion to domestic
banks and insurers after the collapse of SVB as well as Signature Bank in recent
days.
In early
February, Credit Suisse reported a net loss of CHF 7.3 billion in 2022,
compared to analysts' CHF 6.53 billion forecasts. The results were confirmed in
a delayed report filed with the SEC on Tuesday.
The fourth
quarter results fell short of projections and were a nail in the lender's
coffin. The net loss amounted to CHF 1.4 billion, CHF 800 million higher than
was forecasted. The problems faced by the lender resulted in a total of CHF
110.5 billion of capital outflow in 2022. Total assets under management
amounted to CHF 1.3 trillion at the end of the year, falling 20% from a year
earlier.
Credit Suisse Under
Restructuration
Credit Suisse's
problems began to make headlines back in 2022 when its results for the third quarter
showed a net loss of CHF 3.8 billion. At the time, the bank cited the need for
a "radical restructuring" in which it planned to lay off up to 9,000
employees, raise $4 billion in fresh capital and establish CS First Boston as an
independent investment entity in the US.
The first job cuts started in January and affected positions in European investment banking.
Further reductions in this sector, but in the Japanese market, were reported last week.
"From
today, we are taking a series of decisive actions to re-focus Credit Suisse
around the needs of our clients and stakeholders," Körner promised in
October.
While
Credit Suisse's plans are ambitious, the market conditions are becoming less
favorable each week. As the banking giant tries to steer clear of regulatory
controversy, FINMA is wrapping up an investigation in the $10 billion 'Greensill' case. The latest banking sector problems triggered by
SVB's collapse certainly make additional restructuring difficult, and some experts
wonder whether the Swiss bank will find itself on the brink of insolvency soon.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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