Credit Suisse posts worst annual loss since global financial crisis

The bank had flagged in November a hefty quarterly loss

ZURICH (Reuters) - Credit Suisse Group (CSGN.S) on Thursday reported its worst annual loss since the 2008 global financial crisis, battered by scandals and heavy losses that led to unprecedented customer withdrawals.

Switzerland's second biggest bank posted a net loss in the fourth quarter of 1.39 billion Swiss francs ($1.51 billion), in line with an analyst consensus estimate compiled by the lender.

The bank had flagged in November a hefty quarterly loss.

The result compares with a 2 billion franc loss in the same quarter a year earlier, and brings Credit Suisse's total net loss in 2022 to 7.29 billion francs, marking its second straight year in the red.

The group's net asset outflows for the last three months of the year totalled 110.5 billion Swiss francs, the bank said.

In its flagship wealth management division, Credit Suisse reported outflows of 92.7 billion francs, much higher than the 61.9 billion analysts had expected, and putting the new total for the division's assets under management at 540.5 billion.

The haemorrhaging of funds last year led to it breach some liquidity requirements.

The bank, however, completed a 4 billion Swiss franc fundraising in December and said liquidity levels had been boosted, while Chief Executive Ulrich Koerner said last month that Credit Suisse was "seeing money now coming back in different parts of the firm."

"We have a clear plan to create a new Credit Suisse and intend to continue to deliver on our three-year strategic transformation by reshaping our portfolio, reallocating capital, right-sizing our cost base, and building on our leading franchises," Koerner said in a statement on Thursday.

The bank's CET1 capital ratio rose to 14.1% at the end of December from 12.6% at the end of September. Analysts had expected a rise to 13.8%.

Among a slew of scandals in recent years, Credit Suisse has been particularly hard hit by its $5.5 billion loss on U.S. investment firm Archegos and the freezing of $10 billion worth of supply chain finance funds linked to insolvent British financier Greensill.

The bank also announced it has bought former board member Michael Klein's advisory boutique for $175 million.

The plan is for it to be merged with Credit Suisse's investment banking arm CS First Boston, which will operate as an independent capital markets and advisory bank headquartered in New York.