Credit Suisse posts Q3 loss of CHF 1.26 billion
23 October 2008
ZURICH – Credit Suisse became the first major European bank to unveil its third-quarter earnings Thursday, warning that the banking business faced continuing tough conditions after the giant Swiss bank confirmed a CHF 1.26 billion quarterly loss.
Unveiling the third quarter results, the chief of Switzerland’s second biggest bank, Brady Dougan said: "We expect the market environment to remain very challenging and we are cautious with regard to the outlook for the fourth quarter."
Dougan went on to say that the third-quarter result was "clearly disappointing" but "understandable" considering the turmoil that has engulfed financial markets in recent weeks.
It was Credit Suisse’s second quarterly loss this year with the bank reporting a third-quarter profit of CHF 1.3 billion in 2007. The release of the results triggered a more than 3 percent fall in Credit Suisse’s shares.
Credit Suisse’s latest results also came one week after the bank announced it was seeking an additional CHF 10 billion from its key investors.
Hard hit by the global financial upheaval unleashed by the US subprime mortgage meltdown, Credit Suisse confirmed it ran up CHF 2.4 billion writedowns in the third quarter but said it had cut its exposure to the toxic assets at the heart of the crisis.
But while the bank said its private banking unit had drawn in CHF 14.5 billion in net new assets during the latest quarter, its asset management operations recorded outflows totalling CHF 16.5 billion as clients withdrew assets.
[dpa / Expatica]