Credit Suisse chair Axel Lehmann, painted a cautiously optimistic picture at a conference in London. In the meantime, analysts are lowering price targets.
Credit Suisse's client outflows have partially reversed and very few clients have left entirely, its chairman Axel Lehmann (pictured below) said at the Financial Times banking summit in London, according to «Reuters». He also said that few customers had left the bank entirely.
«It was a storm in the retail and partially in the wealth management segment, in particular in Asia, where we had really massive outflows for two to three weeks,» Lehmann is quoted as saying.
Record Low
The chair expects a part of the funds to return and according to him, the price decline is no surprise, considering the ongoing capital raise.
Last week, the ailing big bank reported outflows of around 6 percent of assets under management from October to mid-November, totaling approximately 84 billion Swiss francs ($90 billion).
The bank's shares have been falling since mid-November, marking a record low at 2,667 francs on Thursday.
(Image: Credit Suisse)
Separately, JP. Morgan analysts led by Kian Abouhossein lowered their twelve-month price target to 3.80 francs from 5.50 francs previously.
The analysts say the capital increase would be considered successful if the share price does not fall below the 2.52 franc mark by the end of subscription rights trading on December 6.
Spin-off
This is the price the consortium of 19 banks agreed to take over unsubscribed new shares.
The analyst expects outflows of around 80 billion francs in the current quarter, which if continued, could lead to a merger or spin-off of the Swiss unit, the analyst report said.
