The figures give a fuller picture of the drama that ended Credit Suisse’s 167-year run as one of the most storied European banks and a sense of the work ahead for UBS. Ironically, in what may be its final quarter as a standalone company, Credit Suisse had a record 12.4 billion-franc profit, but only because of a gain tied to the controversial regulatory decision to wipe out many of its bondholders in the deal. Without that, it would have posted another loss.
Credit Suisse Group AG reported 61.2 billion francs (US$69 billion or $91.64 billion) of outflows in the first quarter and took a large writedown at its wealth management unit, underscoring the challenge for UBS Group AG in retaining key clients and assets after the emergency takeover of its biggest rival.
The Swiss bank lost more than 200 billion francs of customer deposits over a six-month period, culminating in several frantic days in March before the government-orchestrated sale. First-quarter results on Monday showed that its key units continued to lose money and shed clients, and the firm borrowed far more from a central bank liquidity backstop than previously known.
