The largest annuals damage since 2008 shown in 2022 o Swiss giant Credit Suisse under the weight of successive scandals, as well as a fourth-quarter run on capital that reached 110 billion Swiss francs ($120 billion) due to a shake-up in the confidence of its clients. The net loss in the period October-December reached 1.39 billion francs ($1.5 billion) and was above forecasts, for the whole of 2022 it amounted to 7.29 billion francs, while in 2021 Credit Suisse had a similar well. However, its financial losses don’t stop there, as its management predicted that its wealth management and investment banking divisions would likely suffer losses in the first quarter of 2023. The outflow of the asset management division was 92.7 billion francs in the fourth quarter of 2022. , which is much higher than analysts expected – 61.9 billion francs – while its assets under management are 540.5 billion francs. The whole situation is hindering the efforts of its CEO, Ulrich Koerner, to get it back on a profitable path by 2024, as he promised. Yesterday, Credit Suisse’s share price fell 12% in Zurich after the company posted a fifth consecutive quarter of losses at the end of 2022. francs in the aggregate continues to surprise investors.

The bank’s management had forecast that its wealth management and investment banking divisions would likely record losses in the first quarter of 2023.

Andreas Venditti, an analyst at Vontobel, called 2022 “clearly one of the worst in Credit Suisse’s 167-year history,” adding that the future leaves no room for complacency. Among a series of scandals, Credit Suisse was hit hard by the collapse of U.S. investment funds Archegos in 2021, as well as the “freeze” of billions of supply chain finance funds linked to British financial services group Greensill. The bank has also been prosecuted at its headquarters in Switzerland for laundering money on behalf of a criminal organization.

Chairman Ulrich Kerner’s promise to halt the decline of Switzerland’s second-biggest bank hinges on a massive program to attract defectors as well as new ones, while isolating volatile investment banks and cutting spending. Yesterday, Credit Suisse reported progress on the steps needed to implement its restructuring plan, including the purchase of consulting firm Michael Klein, but signs of a recovery in client confidence are weak. “I think by 2024 we should be profitable,” Ulrich Kerner said in an interview with Bloomberg TV. “2023 will be a year of transformation, and then we will get better and better,” he said. Finally, it is reported that the total assets under management of Credit Suisse amounted to 1.3 trillion. Swiss francs at the end of 2022, almost 20% less than the previous year.