“When you have a capital raising with a large dilution effect, it creates a lot of uncertainty and leads to high volatility,” Lehmann says. “But I believe the situation has calmed. The business is definitely stable.” — Reuters
ZURICH: Credit Suisse is “definitely stable,” chairman Axel Lehmann says.
Speaking to Swiss broadcaster SRF on Monday, he added that the embattled bank had seen a stabilisation in the outflows of client funds.
The bank, which was founded in 1856, has reported sharp outflows as wealthy clients move assets elsewhere, while the bank battles to recover from a string of scandals by focusing more on its flagship wealth management franchise and pruning back investment banking.
“Thankfully, the outflows have stabilised,” Lehman told SRF in an interview.
Funds were also starting to return to the bank, he said, particularly in its home market of Switzerland.
Credit Suisse, whose shares recently plunged to record lows, is in the midst of an overhaul which has included raising four billion Swiss francs (US$4.23bil or RM18.5bil) to bolster its finances.
“When you have a capital raising with a large dilution effect, it creates a lot of uncertainty and leads to high volatility,” Lehmann explained in an interview.
“But I believe the situation has calmed. The business is definitely stable,” he said.
Still, he expected 2023 and 2024 to be years of transformation for the bank as it sought to stabilise after years of mishaps.
“It’s true, the whole group will not be profitable next year,” Lehmann said. “What is important is the progress we make.
“What is the earning power of the Swiss business, wealth management, asset management, and the portion of the investment bank that we retain, and then produce positive numbers beginning in 2024?” — Reuters
