Credit Suisse hit a new low as investors weigh the damage from the influx

(Bloomberg) — Credit Suisse Group AG fell to a new record high as investors weighed the impact of massive outflows the bank reported this week and news that competitors in Asia’s key growth market are profiting from the Swiss company’s troubles.

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Shares of the bank fell as much as 5% in Zurich on Friday after Vontobel cut its price target and said the company needed to “urgently” halt outflows in its core wealth management business. The stock has fallen for nine straight days, its longest losing streak since 2014.

Credit Suisse announced Wednesday that customers withdrew about 84 billion francs ($89 billion) in the first six weeks of the fourth quarter, with no reversal in sight. Outflows were particularly evident in the Wealth Management unit, amounting to 10% of assets under management.

Bloomberg reported Thursday that competitors including UBS Group AG and Morgan Stanley are among the beneficiaries of this customer migration, as both companies see significant new business in Asia, a key growth market for wealth management. UBS operates the largest private bank in Asia by assets, excluding Inner China, according to a 2021 ranking by Asian Private Banker, while Credit Suisse is the second largest.

Read more: Credit Suisse customers flee to UBS in Asia as rich weight options

Andreas Vendetti, an analyst at Vontobel, said he was “stunned” by the outflows and predicted another loss for Credit Suisse next year amid rising funding costs. He cut the target price for the shares to 3.5 francs from 4 francs.

Shares were down 4.5% at 3.39 francs by 3:04 pm in Zurich.

(Updates are in motion all the time.)

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