Collapsed banking platform, Credit Suisse, announced that 61.2 billion Swiss francs ($68.6 billion) left the bank in the first three months of 2023. This revelation offers a glimpse into the bank run that led to the 167-year-old lender’s failure and its state-backed rescue.
The announcement coincided with what is expected to be the bank’s last-ever financial results, following its forced sale to Swiss rival, UBS, which is expected to be completed soon.
Credit Suisse’s flagship wealth management division saw a significant drop in managed assets, which fell to 502.5 billion francs at the end of March, almost 29% lower than the same period last year. In a statement, the bank said that while these outflows had moderated, they had not yet reversed as of April 24, 2023.
Credit Suisse clients began withdrawing their funds after the bank was caught up in the market turmoil following the collapses of Silicon Valley Bank and Signature Bank in the US in March. Swiss authorities put together a rescue package for Credit Suisse, including more than 200 billion francs of financial guarantees, and saw UBS agree to take over the beleaguered bank.