Credit Suisse CEO says outflows have reduced 'very significantly' as overhaul progresses

Credit Suisse CEO says outflows have reduced ‘very significantly’ as overhaul progresses

Switzerland’s second largest bank Credit Suisse is seen here next to a Swiss flag in downtown Geneva.

Fabrice Coffrini | AFP | Getty Images

Swiss credit is seeing a sharp reduction in client outflows, as the embattled Swiss lender progresses with its major strategic overhaul, new CEO Ulrich Koerner told CNBC on Wednesday.

The bank in November projected a $1.6 billion fourth-quarter loss after announcing a raft of measures to address persistent underperformance in its investment bank and a series of risk and compliance failures. It also revealed at the time that it had continued to experience substantial net asset outflows.

“The outflows, as we said, have reduced very significantly, and we are seeing now money coming back in different parts of the firm,” Koerner said on the sidelines of the World Economic Forum in Davos, Switzerland.

As part of the overhaul, Credit Suisse shareholders in November greenlit a $4.2 billion capital raiseincluding a new private share offering that will see the Saudi National Bank become the largest interest holder, with a 9.9% stake.

Koerner said the transformation towards a “new Credit Suisse” was going well.

“We laid out a very clear plan, and we talked to all different stakeholder groups in the last three months, as you would expect,” he said.

“I think the plan, the strategy resonates very much. We are in full execution swing, so I think we are making really good progress.”

Credit Suisse has also reached out to tens of thousands of clients in Switzerland and around the world for feedback, Koerner said.

“That has generated very positive momentum, and I think this is momentum that travels with us through 2023,” he added.

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