Credit Suisse has updated its Q4 2022 outlook with further expected losses of pre-tax of SFr1.5bn ($1.6bn).
In a note published today (23 November) the bank said its outlook has been dampened by a "substantial industry-wide slowdown" in capital markets, which had contributed to net asset outflows of 6% in Q3.
The bank also said its wealth management sector was now expected to post a loss after net interest income took a knock from lower deposits and fees.
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It said the wealth management outflows have "reduced substantially" from the elevated levels of the first two weeks of October 2022, which had exceeded the rates incurred in Q3. But, these outflows have not yet reversed and were approximately 10% of assets under management at the end of the third quarter of 2022.
Credit Suisse is undergoing a major restructuring in an attempt to repair its business and reputation from a timeline of scandals that have populated headlines about the stock.
The company is due to hold an Extraordinary General Meeting (EGM) today to seek approval for a $4bn capital raising plan.
Credit Suisse said that any "strategic actions" taken to "significantly reduce" its risk profile would be reflected in the near-term financial results.
It added the final Q4 results will depend on several factors, including the Investment Bank's performance for the remainder of the quarter, the continued exit of non-core positions, any goodwill impairments, and the outcome of certain other actions, including potential real estate sales.
