Credit Suisse reported further client outflows in the fourth quarter and a massive loss for the year. It also cut its already meager dividend.
Credit Suisse posted a net loss attributable to shareholders of 7.29 billion Swiss francs ($7.92 billion) in 2022, according to annual results released Thursday, down from a 1.65 billion franc loss in the previous year.
The bank was also unable to stem outflows, with clients pulling substantial funds from the troubled lender in October and beyond. Credit Suisse reported net outflows of 110.5 billion francs in the fourth quarter and 123.2 billion for the year.
Outflows in wealth management made up the bulk of the decline, with 95.7 billion francs attributable to the unit, including 92.7 billion francs in the fourth quarter.
Assets Under Management
Combined with outflows and a negative market environment, assets under management (AUM) fell 19.9 percent last year to 1.29 billion francs from 1.61 billion francs in 2021.
AUM within wealth management fell nearly 30 percent to 540.5 billion francs last year from 742.6 billion francs in 2021.
Restructuring Plans
Credit Suisse said the execution of its restructuring is ahead of schedule and laid out its plans for 2023 and 2024. The priorities include the transformation of Credit Suisse into a firm centered around wealth management and its Swiss bank, complemented by asset management and markets.
It will continue to work towards carving out CS First Boston as an independent unit and accelerate its de-risking in its non-c0re unit. Simplifying the bank is another goal along with exiting non-core businesses to become more efficient and continue to cut costs.
As previously reported, Credit Suisse seeks to reduce its cost base by around 15 percent, or about 2.5 billion Swiss francs, by 2025 and cut around 9,000 jobs in the process.
Dividend Cut
The bank also cut its dividend to five centimes from ten, subject to approval at its annual general meeting.
Common equity tier 1 ratio (CET1) decreased to 14.1 percent from 14.4 percent in 2021.
