The Strategist

Credit Suisse posts record loss since 2008

02/10/2023 - 02:03

Swiss bank Credit Suisse released its 2022 results for the entire year and the fourth quarter. In contrast to 2021, Credit Suisse finished 2022 with a loss of 7.3 billion Swiss francs ($7.9 billion). Since the start of the global financial crisis in 2008, this was the largest annual loss.

Wally Gobetz
Wally Gobetz
The bank's annual income decreased 34% to 14.9 billion Swiss francs ($16.2 billion). The bank's revenue for the fourth quarter decreased by 33% to 3.1 billion Swiss francs ($3.4 billion). The quarterly net loss decreased to 1.4 billion francs ($1.5 billion) compared to the corresponding period in 2021. However, the results fell short of what analysts expected.

Ulrich Körner, CEO of Credit Suisse, referred to the losses as "absolutely unacceptable." He emphasized the importance for the bank's restructuring program, which was started last year. This entails reducing expenses, laying off 17% of the workforce, and dissolving the bank's investment banking branch, which has been implicated in numerous scandals and has recently posted enormous losses.

Last year, the division reported losses of $2.3 billion (2.1 billion francs). Thomas Gottstein, who led the bank through a string of scandals and a 40% decline in its share price, was replaced as CEO of Credit Suisse by Mr. Körner in July 2022.