Credit Suisse reported significant outflows of about $69bn during its first quarter results following its collapse and subsequent emergency rescue by UBS. The outflows were about 5% of the group’s AUM as of end-2022, where deposit outflows were 57% of the net outflows from its wealth management and banking units. The group reported a one-off $14bn profit during the quarter vs. a $15bn loss in the prior quarter. The surge in profits were due to a net revenue reconciliation gains from the write-off of its AT1 notes. The write-off naturally saw its CET1 ratio surge to 20.4% vs. 14.1% at the end of the previous quarter. The earnings results could be the last in its 167-year history. There were no new updates regarding the treatment of its AT1s or the litigation challenges filed by bondholders in Swiss courts.
Credit Suisse’s 6.5% Tier 2s due in August 2023 are trading at 96.1, yielding 21.1%.
