AGL 5.40 Decreased By ▼ -0.10 (-1.82%)
ANL 8.50 Increased By ▲ 0.01 (0.12%)
AVN 75.51 Decreased By ▼ -0.29 (-0.38%)
BOP 5.20 Decreased By ▼ -0.04 (-0.76%)
CNERGY 4.39 Decreased By ▼ -0.03 (-0.68%)
EFERT 81.58 Decreased By ▼ -0.05 (-0.06%)
EPCL 49.40 Decreased By ▼ -0.30 (-0.6%)
FCCL 12.70 Decreased By ▼ -0.09 (-0.7%)
FFL 5.51 Increased By ▲ 0.01 (0.18%)
FLYNG 6.81 Increased By ▲ 0.08 (1.19%)
FNEL 4.60 Decreased By ▼ -0.10 (-2.13%)
GGGL 8.46 Increased By ▲ 0.04 (0.48%)
GGL 13.86 Decreased By ▼ -0.09 (-0.65%)
HUMNL 6.04 Decreased By ▼ -0.04 (-0.66%)
KEL 2.56 No Change ▼ 0.00 (0%)
LOTCHEM 27.66 Increased By ▲ 0.01 (0.04%)
MLCF 23.54 Decreased By ▼ -0.25 (-1.05%)
OGDC 71.35 Increased By ▲ 0.25 (0.35%)
PAEL 15.10 Increased By ▲ 0.07 (0.47%)
PIBTL 4.86 Decreased By ▼ -0.04 (-0.82%)
PRL 15.80 Decreased By ▼ -0.18 (-1.13%)
SILK 1.09 Decreased By ▼ -0.01 (-0.91%)
TELE 8.85 Increased By ▲ 0.03 (0.34%)
TPL 7.11 Increased By ▲ 0.03 (0.42%)
TPLP 19.24 Decreased By ▼ -0.02 (-0.1%)
TREET 20.73 Decreased By ▼ -0.12 (-0.58%)
TRG 135.42 Decreased By ▼ -1.18 (-0.86%)
UNITY 16.24 Decreased By ▼ -0.31 (-1.87%)
WAVES 9.30 Increased By ▲ 0.05 (0.54%)
WTL 1.40 Increased By ▲ 0.05 (3.7%)
BR100 4,151 Decreased By -7.2 (-0.17%)
BR30 15,288 Decreased By -51.1 (-0.33%)
KSE100 41,591 Decreased By -60.6 (-0.15%)
KSE30 15,356 Decreased By -23.7 (-0.15%)
Follow us

ZURICH: Credit Suisse shares slid by as much as 10% in early trading on Monday, reflecting market concerns ahead of a restructuring plan due to come with third-quarter results at the end of October.

Swiss regulator FINMA and the Bank of England in London, where the lender has a major hub, were monitoring the situation and working closely together, a source familiar with the situation said.

Credit Suisse’s recent problems were well known and there had been no major recent developments, the source added.

The Bank of England declined to comment. Chief Executive Ulrich Koerner last week told staff that Credit Suisse has solid capital and liquidity.

And bank executives spent the weekend reassuring large clients, counterparties and investors about its liquidity and capital, the Financial Times reported on Sunday.

A Credit Suisse spokesman declined to comment on the FT report, which said the weekend calls followed a sharp rise in spreads on the bank’s credit default swaps (CDS), which offer protection against a company defaulting on its debt.

Credit Suisse’s euro-denominated bonds dropped to record lows, with the Swiss bank’s longer-dated bonds suffering the sharpest declines.

In July, Credit Suisse announced its second strategy review in a year and replaced its CEO, bringing in restructuring expert Koerner to scale back investment banking and cut more than $1 billion in costs.

It has said it was considering measures to strengthen its flagship wealth management franchise, scale back its investment bank into a “capital-light, advisory-led” business, and evaluate strategic options for the Securitized Products business.

Credit Suisse considers splitting investment bank in three

Citing people familiar with the situation, Reuters reported last month that Credit Suisse was sounding out investors for fresh cash as it attempts its overhaul.

JP Morgan analysts said in a research note that, based on its financials at the end of the second quarter, they view Credit Suisse’s capital and liquidity as “healthy”.

Given the bank has indicated a near-term intention to keep its CET1 capital ratio at 13-14%, the second-quarter end ratio is well within that range and the liquidity coverage ratio is well above requirements, the analysts added.

Credit Suisse had total assets of 727 billion Swiss francs ($735.68 billion) at the end of the second quarter, of which 159 billion francs was cash and due from banks, while 101 billion was trading assets, it noted.

While Credit Suisse’s CDS spreads have widened, this should be seen in the context of widening credit spreads across the sector, which was expected in an environment of rising interest rates with ongoing macroeconomic uncertainty, the analysts said.

Over the past three quarters alone, Credit Suisse’s losses have added up to nearly 4 billion Swiss francs.

Given the uncertainties, the bank’s financing costs have surged.

Deutsche Bank analysts in August estimated a capital shortfall of at least 4 billion francs.

Credit Suisse shares, which have fallen by more than half this year, came off lows and were down about 8.5% by mid-morning.

Comments

Comments are closed.

Credit Suisse shares slip despite moves to soothe investor concerns

Forex reserves fall to $6.7bn on repayments

CARs: ADB lists barriers to trade flows

FX reserves may rise in H2FY23: All debt repayments on track, says SBP governor

Saudi Arabia, China sign strategic deals

‘Country of Particular Concern’: Pakistan conveys its concerns to US

765kV DC transmission lines: FD asks PD to take action on award of contract

Cabinet approves restoration of 11 revoked POL exploration licences

Amendments to power plants’ documents,transition from USD Libor benchmark to SOFR: MoF urges PD to nominate body as focal point

Consignments of imported soybean feed: FTO may issue release order today

Pharma supplies: KTBA urges FBR to revisit clarification about ‘further tax’