Credit Suisse reported 61.2 billion Swiss francs ($69 billion) of outflows in the first quarter that ended its 167-year history as Switzerland's second largest lender and forced a shotgun wedding with rival UBS.
In its regulatory filing on Monday, Credit Suisse said it had net asset outflows of 47.1 billion francs ($52 billion) at its wealth management division in the three-month period to the end of March, which was driven by outflows across all regions.
Deposit outflows represented 57 per cent of its wealth management unit and Swiss Bank net asset outflows in the first quarter of this year. The bank also registered a 1.32 billion franc impairment charge in its wealth management unit in the quarter.
The outflows “have moderated but have not yet reversed” as of April 24, 2023, it said.
Credit Suisse, which had already lost about 110bn francs of assets in the fourth quarter of last year, said net income attributable to shareholders was 12.43 billion francs in the first quarter, compared to a 273 million net loss in the same period a year earlier and a net loss of 1.39 billion francs in the last three months of 2022.
“In light of the merger announcement, the adverse revenue impact from the previously disclosed exit from non-core businesses and exposures, restructuring charges and funding costs, Credit Suisse would also expect the investment bank and the group to report a substantial loss before taxes in the second quarter of 2023 and 2023,” it said.
Credit Suisse said actual results would depend on a number of factors. These include the performance of its investment banking and wealth management divisions; deposit or net asset flows; the continued exit of non-core positions; goodwill, software and other impairments.
Other elements that may affect overall results in the next quarter and year include litigation; regulatory actions; credit spreads and related funding costs; the usage and availability of the Swiss National Bank liquidity facilities; the impact of continued voluntary and involuntary employee attrition and the outcome of certain other items, including potential real estate sales.
Last month, Swiss regulators jumped in to ring-fence Credit Suisse by paving the way for it be absorbed by UBS for $3.2 billion, amid a crisis of confidence in banking, following the collapse of several lenders in the US.
The Swiss National Bank agreed to lend UBS up to 100 billion Swiss francs to help it take over Credit Suisse, while Swiss regulator Finma erased $17 billion worth of Credit Suisse’s bonds and scrapped the need for shareholders to vote on the agreement.
Under the terms of the March 19 merger agreement, all shareholders of Credit Suisse will receive one share in UBS for 22.48 shares in Credit Suisse.
UBS estimates that the combined invested assets will total $5 trillion, with the merged lender being twice the size of Switzerland’s economy.
In its statement on Monday, Credit Suisse said it and Michael Klein had mutually agreed to terminate the $175 million acquisition of The Klein Group, the investment banking business of Michael Klein, by Credit Suisse in light of the merger with UBS.
Credit Suisse said the Swiss Federal Council instructed the Swiss Federal Department of Finance to cancel or reduce the outstanding variable remuneration for the top three levels of management at Credit Suisse on April 5.
The bank said as of March 31, 2023, it had net borrowings of 108 billion francs provided by Switzerland's central bank after repayments of 60 billion francs in the quarter, with further repayments of 10 billion as of April 24, 2023.
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
ALRAWABI%20SCHOOL%20FOR%20GIRLS
%3Cp%3ECreator%3A%20Tima%20Shomali%3C%2Fp%3E%0A%3Cp%3EStarring%3A%C2%A0Tara%20Abboud%2C%C2%A0Kira%20Yaghnam%2C%20Tara%20Atalla%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
Profile Box
Company/date started: 2015
Founder/CEO: Mohammed Toraif
Based: Manama, Bahrain
Sector: Sales, Technology, Conservation
Size: (employees/revenue) 4/ 5,000 downloads
Stage: 1 ($100,000)
Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)
Mohammed bin Zayed Majlis
Essentials
The flights: You can fly from the UAE to Iceland with one stop in Europe with a variety of airlines. Return flights with Emirates from Dubai to Stockholm, then Icelandair to Reykjavik, cost from Dh4,153 return. The whole trip takes 11 hours. British Airways flies from Abu Dhabi and Dubai to Reykjavik, via London, with return flights taking 12 hours and costing from Dh2,490 return, including taxes.
The activities: A half-day Silfra snorkelling trip costs 14,990 Icelandic kronur (Dh544) with Dive.is. Inside the Volcano also takes half a day and costs 42,000 kronur (Dh1,524). The Jokulsarlon small-boat cruise lasts about an hour and costs 9,800 kronur (Dh356). Into the Glacier costs 19,500 kronur (Dh708). It lasts three to four hours.
The tours: It’s often better to book a tailor-made trip through a specialist operator. UK-based Discover the World offers seven nights, self-driving, across the island from £892 (Dh4,505) per person. This includes three nights’ accommodation at Hotel Husafell near Into the Glacier, two nights at Hotel Ranga and two nights at the Icelandair Hotel Klaustur. It includes car rental, plus an iPad with itinerary and tourist information pre-loaded onto it, while activities can be booked as optional extras. More information inspiredbyiceland.com
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
How to report a beggar
Abu Dhabi – Call 999 or 8002626 (Aman Service)
Dubai – Call 800243
Sharjah – Call 065632222
Ras Al Khaimah - Call 072053372
Ajman – Call 067401616
Umm Al Quwain – Call 999
Fujairah - Call 092051100 or 092224411
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The Penguin
Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
What is dialysis?
Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.
It gets rid of your body's wastes, extra salt and water, and helps to control your blood pressure. The main cause of kidney failure is diabetes and hypertension.
There are two kinds of dialysis — haemodialysis and peritoneal.
In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.
In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.
It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
