Swiss financial regulator Finma is reviewing remarks made by Credit Suisse Group Chairman Axel Lehmann that outflows from the creditor stabilized in early December, two people with knowledge of the matter told Archyde.com.
Finma is seeking to establish the extent to which Lehmann, and other Credit Suisse representatives, were aware that clients were continuing to withdraw funds when he said in media interviews that the outflows had ceased, the sources said. two people, who asked to remain anonymous because the case was not public.
Lehmann told the Financial Times in an online interview Dec. 1 that following strong outflows in October, these had “completely flattened out” and “partially reversed.”
The following day, he told Bloomberg Television that outflows had “basically stopped”.
Credit Suisse shares rose 9.3% on Dec. 2.
The regulator is reviewing whether Lehmann’s statements were potentially misleading, the people said, with one adding that Lehmann may not have been properly briefed before making the comments.
A Finma spokesperson declined to comment. A Credit Suisse spokesperson said the bank “does not comment on speculation.” Lehmann did not respond to an email seeking comment.
When releasing its annual results on Feb. 9, Credit Suisse said customers had withdrawn 110.5 billion Swiss francs ($119.65 billion) from Switzerland’s second-largest bank over the past three months. month of 2022.
The outflows reported by the bank exceeded market expectations and capped a series of weak results that sent the stock down regarding 15% on the day.
In response to a question regarding the distribution of outflows over the period, Chief Executive Ulrich Koerner told analysts that day that more than 85% of outflows in the last quarter were in October and November. , according to a transcript of the call.
This led Citigroup analysts to conclude in a note to clients that management did indicate that 15% of cash outflows occurred in December. Finma’s review adds to the challenges facing Credit Suisse, which has been rocked by scandals in recent years. The creditor has embarked on a major overhaul to restore profitability by ditching some investment banking business and focusing on managing the money of the wealthy. In early October, a social media storm sparked by an unsubstantiated report on the bank’s financial health prompted wealthy customers to transfer their deposits elsewhere. The bank said at the time that it was continuing its restructuring and staying close to its customers.
Responding to a request for comment from Archyde.com on the Feb. 9 results, Finma said in a statement that while Credit Suisse’s liquidity buffers have had a stabilizing effect, the regulator “watches banks very closely in such situations. “, referring to cash outflows, which “were indeed significant” in the fourth quarter. He gave no further details.
($1 = 0.9235 Swiss francs)
