Credit Suisse CEO reassures over financial strength, shares slide
Credit Suisse Group
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07:46 20/03/24
Credit Suisse tumbled on Monday after executives reportedly spent the weekend reassuring clients and staff over the bank’s financial health.
At 0910 BST, the shares were down 7.7% at CHF3.67.
According to reports, chief executive Ulrich Körner told staff in a memo on Friday that there were "many factually inaccurate statements being made" in the media about the crisis at the bank.
"I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank," Körner said. "We are in the process of reshaping Credit Suisse for a long-term, sustainable future – with significant potential for value creation.
"Given the deep franchise we have, with a longstanding focus on serving some of the world’s most successful entrepreneurs, I am confident we have what it takes to succeed."
According to the Financial Times, executives at the bank hit the phones after spreads on Credit Suisse’s credit default swaps rose sharply, indicating investor worries over its financial health.
The FT quote a Credit Suisse executive involved in the discussions as saying: "The teams are actively engaging with our top clients and counterparties this weekend.
"We are also getting incoming calls from our top investors with messages of support."
The executive denied recent press articles that the bank had formally approached investors about potentially raising more capital, insisting the bank was trying to avoid such a move with its share price at record lows and higher borrowing costs due to rating downgrades.