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Credit Suisse outflows neared $69B in Q1

Credit Suisse on Monday announced its earnings report for the first quarter of 2023, stating it suffered an outflow of nearly $69 billion. Photo by Michael Buholzer/EPA-EFE
Credit Suisse on Monday announced its earnings report for the first quarter of 2023, stating it suffered an outflow of nearly $69 billion. Photo by Michael Buholzer/EPA-EFE

April 24 (UPI) -- A bank run that forced Credit Suisse to be sold to domestic rival UBS last month saw nearly $69 billion in assets flee its vaults during the first three months of the year, it said.

The troubled Swiss lender announced the outflow Monday in its Q1 earnings report that showed it sported a pre-tax profit of $14.3 billion, which was due to the write-off of $16.8 billion of Additional Tier 1 capital notes as ordered by the Swiss Financial Market Supervisory Authority, known as FINMA, to facilitate its merger with UBS.

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Its pre-tax loss for the quarter was $1.3 billion.

The company experienced a bank run for months that forced the government and the central bank to make the controversial decision to sell Credit Suisse to rival UBS for $3.2 billion on March 19.

The extent of the run during the first three months of the year was $68.7 billion, it said, adding that the most extensive outflow occurred during the second half of March when it experienced "significant withdrawals of cash deposits as well as non-renewal of maturing time deposits."

Customer deposits also declined by $75 billion during that time frame.

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"These outflows, which were most acute in the days immediately preceding and following the announcement of the merger, stabilized to much lower levels, but had not yet reversed as of April 24, 2023," it said.

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