Credit Suisse posts biggest loss since 2008 amid ongoing 21,000 job cuts

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Credit Suisse Group reported its fifth-straight quarterly loss on February 9, which totaled as Swiss moneylender’s biggest annual loss since the financial crisis of 2008. The lender on Thursday posted a loss of 1.4 billion Swiss francs ($1.5 billion) taking its full-year loss to 7.3 billion Swiss francs ($7.9 billion). In 2008, Credit Suisse made a loss of 8.2 billion Swiss francs ($8.9 billion).

The bank’s shares fell 5 per cent in early trade. The stock has declined 65 per cent over the past 12 months.

Credit Suisse said in a statement that the fourth-quarter performance was impacted by “the challenging economic and market environment, significant deposit and net asset outflows at the beginning of the quarter, and the execution of our strategic actions.” The company said that it expects to make another “substantial loss” in 2023.

Customers withdrew 111 billion Swiss francs ($121 billion) in the final three months of 2022 when the bank was hit by social media speculation that it was on the brink of collapse.

Since 2021, Credit Suisse has headed off a major restructuring plan that includes cutting 9,000 full-time jobs. The company, in its bid to align its focus from investment banking to wealth announced on Thursday the acquisition of M. Klein & Company, an investment banking business.

Credit Suisse CEO Ulrich Körner said the deal “marks another milestone in the carve-out of CS First Boston as a leading independent capital markets and advisory business.”

“We have a clear plan to create a new Credit Suisse and intend to continue to deliver on our three-year strategic transformation by reshaping our portfolio, reallocating capital, right-sizing our cost base, and building on our leading franchises,” Körner said in the statement.

(With inputs from agencies)

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