By Ed Frankl
Credit Suisse Group AG notched up its fifth-straight quarterly loss in the last three months of 2022 after clients pulled billions in deposits from its wealth-management business, and flagged a further full-year loss in 2023.
Switzerland’s second-largest lender on Thursday reported a fourth-quarter net loss of 1.39 billion Swiss francs ($1.51 billion) compared with a loss of CHF2.09 billion in the same period of 2021, as revenue dropped 33% on year to CHF3.06 billion.
A company-compiled consensus forecast had expected a net loss of CHF1.34 billion on revenue of CHF3.15 billion.
The lender already in November flagged expectations of a CHF1.5 billion pretax loss, after lower deposits and assets under management led to reduced net interest income and recurring commissions and fees, dragging its wealth-management business into a loss. In the end, the pretax loss came to CHF1.32 billion.
It came after the Zurich-based company experienced deposit and net-asset outflows in October as social-media reports and a spike in credit-default swaps caused a frenzy over the bank’s financial position.
Assets under management fell 8% compared with the previous quarter, mostly at its wealth-management division, to CHF1.294 trillion, due to the outflows as well as adverse foreign-exchange impacts, partly offset by favorable market movements, the bank said.
The company declared a dividend of CHF0.05 a share for 2022.
The company said it anticipates a significant loss before taxes in 2023, due to restructuring charges and exits from businesses, adding that it expects its investment bank to report a loss in the year.
Write to Ed Frankl at edward.frankl@dowjones.com
Corrections & Amplifications
This story was corrected at 0645 GMT. The original version misstated Credit Suisse’s net loss in the fourth quarter of 2021 as CHF2.09 billion. The loss was CHF2.9 billion.
Credit Suisse’s net loss in the fourth quarter of 2021 was CHF2.09 billion. “Credit Suisse Posted Fifth-Straight Loss in 4Q,” at 0617 GMT, incorrectly said it was CHF2.9 billion.