Credit Suisse Group AG has reported a significant decrease in revenue from its investment banking and wealth management divisions and its domestic bank for the first quarter. However, the financial institution posted a large net profit due to writing off $17 billion in bonds. According to recent reports, customers withdrew around $75 billion in deposits during this time.
The bank claims that since the announcement of their deal with UBS on March 19th, the situation has improved. In fact, clients had withdrawn nearly $69 billion during Q1 alone as they faced escalating troubles which eventually led them to sell assets to rival firm UBS.
In an official statement from Credit Suisse, they revealed losses of 1.3 billion Swiss francs within the first three months of this year and experienced "significant net asset outflows," particularly towards late March. Investors grew increasingly concerned about the wellbeing of the historic lender amid these troubles - resulting in plummeting stock prices and forcing them into borrowing billions from Switzerland's central bank.
"During those challenging times we witnessed an unprecedented level of withdrawals," explained Thomas Gottstein, CEO at Credit Suisse Group AG. "We are working diligently on restoring trust among our clients."
As fears surrounding their financial stability continued mounting throughout March, it was ultimately decided by Swiss authorities that selling themselves to UBS for $3.2 billion would be one of few options available for calming turbulent markets.
This drastic measure came as a result of Silicon Valley Bank collapsing earlier this year - sparking widespread chaos across global finance sectors throughout mid-March.
Despite navigating through such treacherous waters recently though; many now believe that with support from both governmental bodies and newfound partnerships alike – there remains hope yet still for Credit Suisse moving forward into future quarters too.