Credit Suisse to Face New Challenges in 2023
By Garvit Vyas , 07 April, 2023
The bank crisis has officially found its way across the Atlantic after the collapse of Silicon Valley Bank. After a hasty deal by the regulators, the largest bank in Switzerland, UBS, agreed to buy its long-time rival Credit Suisse for USD 3.2 billion on Sunday.
The deal, with a staggering 60 percent below Credit Suisse's market capitalization, marked the end of this 166-year-old institution and UBS's status as one of the largest financial institutions in Europe. Credit Suisse also falls victim to the banking system loss, if not directly linked to the Silicon Valley Bank and Signature Bank. This made the bank’s latest annual report a giant red flag for their investors and clients.
According to the research reports, the Zurich-based bank group acknowledged "material weakness" in its financial status but posted a $7.9 billion loss for 2022. It also confirmed substantial outflows of deposits and other assets under the management. The bank's stock price was tumbling due to the U.S. banking crisis, where shareholders and clients suffered equally. As the reports reveal, the situation was down by another 25 percent after having 70 percent in 2022.
The reports project Credit Suisse has gone through a downward trajectory and its market capitalization fell from $45 billion in 2017 to $12 billion by the end of 2022.
Latest News
Globally, nations are finding ways to reduce environmental emissions to achieve the goals of clean energy transitions. The transition goals are set to be completed by the end of 2050. Therefore, economies are taking necessary steps to integrate…
Artificial intelligence plays a pivotal role in the tech industry. There is continuous demand for artificial intelligence (AI) in the tech sectors to improve their work. In 2024, the tech industries expect reliable power supply in the tech sector for…
Analyst