On Wednesday, it expected the company to record a loss of 1.5 billion Swiss francs ($ 1.6 billion) in the fourth quarter as it makes massive strategic revisions.

last month, he announced a series of measures to address the investment bank’s continued underperformance and a series of risks and compliance failures that have led to increasingly high litigation costs.

“These critical actions are expected to result in a radical restructuring of the investment bank, a rapid cost shift and capital strengthening and redistribution, all of which are proceeding at a rapid pace,” the bank said in a market update on Wednesday.

Credit Suisse revealed that it continued to experience a net asset outflow and said this inflow was around 6% of assets under management at the end of the third quarter. The Zurich-based bank noted last month that this trend continued in the first two weeks of October, after reports cast doubt on its liquidity position and CDS rose. A credit default swap is a type of financial derivative that provides the buyer with protection against default.

“In asset management, this outflow has declined significantly from the high levels in the first two weeks of October 2022, although they have not yet decreased,” Credit Suisse said on Wednesday.

The group expects to post a loss of CHF 75 million related to the sale of its stake in UK wealth platform Allfunds Group, while lower deposits and less assets under management are expected to result in lower net interest income, commissions and recurring fees, which the bank said is likely to result in a loss for the asset management division in the fourth quarter.

In addition to the negative impact on revenue from previously announced exits from non-core operations and exposures, and as previously announced on October 27, 2022, Credit Suisse expects the investment bank and group to report a significant pre-tax loss in the fourth quarter of 2020. 2022 to 1.5 billion Swiss francs for the group.”

The group’s actual results will depend on a number of factors, including the investment bank’s performance for the remainder of the quarter, continued exits from non-core positions, any goodwill impairments and the results of certain other actions, including potential property sales.

Credit Suisse has confirmed that it has started working towards a target of 15%, or CHF 2.5 billion, to reduce its cost base by 2025 with a target reduction of CHF 1.2 billion in 2023. In addition to the layoffs of 5% of the bank’s workforce, there are also laid-off cuts in “costs”, other than fees.

The bank announced last week that it would accelerate the restructuring of its investment bank by selling a significant portion of its securitised products Group (SPG) to Apollo Global Management, reducing SPG’s assets from $ 75 billion to approximately $ 20 billion by mid-2023.

“These and other measures to reduce indebtedness, including but not limited to, in non-core businesses, are expected to improve liquidity ratios and reduce the group’s financing needs,” it said Wednesday.

Credit Suisse is holding an extraordinary meeting on Wednesday, where shareholders will vote on proposals to increase the group’s capital.

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