Credit score Suisse expects a pre-tax loss of about 1.5 billion Swiss francs in the fourth quarter

ZURICH, Nov 23 (Reuters) – Credit rating Suisse (CSGN.S) said on Wednesday it expects a pre-tax reduction of as a lot as 1.5 billion Swiss francs ($1.58 billion) in the fourth quarter as it prepares to look for shareholder acceptance to increase new equity.

“In its outlook statement dated Oct 27, 2022, the financial institution highlighted that the hard financial and marketplace ecosystem had an adverse impression on customer activity throughout its divisions,” Switzerland’s next-major financial institution said.

“In certain, the investment financial institution was impacted by a sharp slowdown in cash markets and lessened gross sales and buying and selling business enterprise activity, exacerbating ordinary seasonal declines, and the group’s relative underperformance,” the bank additional.

Customer action in the prosperity management and Swiss banking sectors remained subdued, and the bank expects these industry disorders to persist in the coming months.

In addition, the bank mentioned money outflows accelerated early in the fourth quarter.

At the team amount, internet asset outflows were about 6% of property under management at the conclusion of the third quarter as of Nov. 11.

In prosperity administration, outflows have declined “considerably” from highs attained in the initially two months of October, but have not but reversed, and had been at about 10% of property underneath administration by the close of the 3rd quarter of 2022.

Credit rating Suisse is owing to keep an amazing standard meeting afterwards on Wednesday, when it will seek out approval for a 4 billion Swiss franc capital maximize to fund its overhaul.

($1 = CHF .9507)

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Reporting by John Revell Modifying by Paul Carrel and Maria Sheahan

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