Client withdrawals were a major factor in the Credit Suisse Group's worst yearly loss since the global financial crisis of 2008, and the company issued a warning that this year would bring another "substantial" loss.
Despite claiming that things have been improving, the scandal-plagued Swiss bank experienced a sharp acceleration in withdrawals in the fourth quarter, with outflows of more than 110 billion Swiss francs ($120 billion).
It predicted that the investment banking division and wealth management division will both likely post losses in the first quarter of 2023.
In accordance with expectations, the second-largest bank in Switzerland reported a net loss of 1.39 billion francs during the fourth quarter.
The outcome contrasts to a loss of 2 billion Swiss francs in the same quarter a year prior, bringing Credit Suisse's overall net loss for 2022 to 7.29 billion francs, marking its second consecutive year of losses.
Credit Suisse's flagship wealth management sector announced outflows of 92.7 billion francs, significantly more than the 61.9 billion ,experts had predicted, bringing the division's assets under control to a new level of 540.5 billion.
With the announcement that it had paid $175 million for the advisory boutique of former board member Michael Klein, the bank announced progress in its efforts to spin off its investment banking division. It did not provide information on potential additional investors for the unit.
The Zurich-based bank has stated that it is looking for investors to contribute $500 million to CSFB, and CEO Koerner stated in October that the bank already had a $500 million commitment from an investor without naming them.
At the end of December, the bank's capital ratio increased to 14.1% from 12.6% at the end of September. A jump to 13.8% was what analysts anticipated.
Credit Suisse has been particularly severely affected by a number of scandals in recent years, including its $5.5 billion loss on American investment firm Archegos and the freezing of $10 billion in supply chain finance funds connected to bankrupt British financier Greensill.
In November, the bank's rating was downgraded by Standard & Poor's to just one step above junk.