Sunday, March 26, 2023

Slump in Credit Suisse's shares hits European bank stocks

PUNJAB NEWS LINE | March 15, 2023 05:29 PM

London:Shares in Switzerland's Credit Suisse have hit a record low on Wednesday morning, after its biggest shareholder said it cannot put up more money to support the bank, the media reported.

Trading in Credit Suisse's shares was halted a number of times by the stock exchange operator on Wednesday, as volumes soared and the stock plummeted 20 per cent, The Guardian reported.

Credit Suisse's shares fell below 2 Swiss francs for the first time ever on Wednesday morning, as anxiety over the banking sector drove European stock markets deeper into the red.

Saudi National Bank's chairman, Ammar Al Khudairy, said this morning that his bank would not be able to inject further funds into Credit Suisse if there was another call for additional liquidity.

Saudi National Bank is currently Credit Suisse's largest investor, with 9.9 per cent of its shares, having taken part in its capital raising last year.

On Tuesday, Credit Suisse published its annual report for 2022 which showed it had identified "material weaknesses" in its internal controls over financial reporting.

Last month, Credit Suisse reported its biggest annual loss since the 2008 global financial crisis after clients pulled billions from the bank.

The UK's FTSE 100 stock index has hit its lowest level since last December, as the slump in Credit Suisse's shares hammers confidence in the City, The Guardian reported.

The FTSE 100 has dropped by 193 points, or 2.5 per cent, to 7,443 points, meaning it has lost all its gains for 2023 (it hit record highs over 8,000 points last month).

European banking shares are under fresh pressure on Wednesday with Swiss bank UBS are down 6.2 per cent, Germany's Deutsche Bank has lost 6.4 per cent, and France's Societe Generale has fallen by 9.5 per cent.

In London, Barclays has dropped by 6.5 per cent while Standard Chartered has shed 5.5 per cent and NatWest has lost 4.4 per cent, The Guardian reported.


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