Credit Suisse clients pull $120 billion amid fifth straight loss

Credit Suisse clients pull $120 billion amid fifth straight loss

Dubai: Credit Suisse Group AG clients pulled a record amount of funds in the fourth quarter amid deteriorating confidence in the Swiss lender, as a fifth-straight quarterly loss capped its worst year since the financial crisis. The worse-than-expected net loss of 1.39 billion Swiss francs ($1.5 billion) in the three months through December was driven by losses at both the key wealth division and the investment bank, Credit Suisse said Thursday. Following a surge in client asset withdrawals in early October, outflows for the quarter totaled 110.5 billion francs. The bank said it expects a “substantial” pre-tax loss this year. Following a strategy revamp in October, Credit Suisse is carving out parts of its investment bank and refocusing on its core wealth-management business, after years of scandals and losses shattered confidence in the brand. Executives pulled off a $4 billion capital raise late last year, and are shedding as many as 9,000 jobs with the aim of regaining profitability by 2024. In a November profit warning, executives had disclosed clients had pulled 84 billion Swiss francs of their money in the first two weeks of October amid concerns about the bank’s stability and ability to restructure. Credit Suisse said approximately