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Credit Suisse shares choppy as traders gauge outlook for embattled lender

Published 17/03/2023, 08:12 pm
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By Scott Kanowsky 

Investing.com -- Shares in Credit Suisse Group AG (SIX:CSGN) oscillated between gains and losses on Friday, as investors eyed its future after the Swiss National Bank offered a liquidity lifeline.

Following a comment from Credit Suisse's top shareholder that it would not be injecting further capital earlier this week, the Zurich-based bank's stock shed nearly a fourth of its value. But sentiment around the lender has improved since Swiss authorities subsequently said they would make a financial backstop worth more than $50 billion available to Credit Suisse.

In an interview late on Thursday, Andre Helfenstein, chief executive officer of Credit Suisse's Swiss bank, told broadcaster SRF that the funding is "precautionary liquidity" that will allow the company to continue carrying out its restructuring plans and "work well in this turbulent situation."

Helfenstein added that Credit Suisse is working to stem customer outflows, but noted that the fix is "not something that happens overnight."

In a separate development, Credit Suisse and larger rival UBS Group AG (SIX:UBSG) are opposed to a potential forced merger, according to a Bloomberg report citing people familiar with the matter. In particular, the report said UBS is more focused on its wealth management and not keen to assume risks related to Credit Suisse.

Neither bank responded to a request for comment from Reuters.

UBS shares were trading in the green on Friday morning.

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