Manis, I mean, these numbers just broke 15 minutes ago.
Quick digestion for you in a quick move outside their Credit Suisse.
What do you mean takeaways? I mean, the drive by, which happened in
the middle of March in terms of the exodus of funds.
It could have been a lot worse. This was a drive by 61 billion Swiss
francs dead walk out the door. They did top up the SNB for liquidity of
over 100 billion Swiss francs. So there's undoubted pressure.
What they have told us is the market had expected over a hundred billion.
That was the sort of this sort of the fluttering number in the world in the
went to put it in context for you, in the fourth quarter of 2020 to 110
billion walked out the door. Here we are, 61 billion has gone out the
door. That's certainly not as bad as that
fourth quarter. They are taking a goodwill impairment
charge in the wealth management business of one point three billion.
There's a couple of things just to put your head around.
Danny, when you look at these numbers, you need to step back and pause.
Money walking out a door of a massive institution, systemically important bank
like Credit Suisse deposits can fly out the door like that.
That's a chap's payment. That's that's done in a matter of
minutes in the swift system were complicated.
Evolution of this story comes is when clients decide to exit the bank, go with
their wealth manager. Those are much more difficult moneys to
move right now. What should give you a little bit of
cheer here and to UBS is that if there was going to be a massive gusher of an
exodus, it hasn't shown up in these numbers thus far.
As I say, differentiate between deposits, which are at the stroke of a
button on a swift payment and those much more complicated, deep rooted client
wealth management relationships for nigh.
This could have been a lot worse on first tape, but that is a whopping
outflow and a goodwill impairment of one point three billion.
Danny, good morning. Good morning.
Madness. Yeah, and the outflows as they put in
their earnings have not yet reverse. Even though maybe it's moderated, it's
still an issue. What do you make of Credit Suisse
announcing that they've terminated the acquisition of Klein Group?
That this is something we had expected perhaps when it comes to the integration
with UBS? Part of the great turnaround plan
announced by actor lay man and a runner was this idea that they would not
outsource but step back from investment banking.
Push off to the Klein entity that slightly riskier business of investment
management and investment banking excuse me, Colin Callahan has made it
abundantly clear he is the chairman at UBS, abundantly clear that the agenda is
to downsize the investment bank, its relevance as its importance and to put
it, as it were, as a feeder, very natural feeder into the wealth
management that would be downsized to 25 percent of its bulk and weight within
the Credit Suisse High. So to me, that's not necessarily huge,
hugely new. This is about realigning what we are,
who we are and what we do for Switzerland.
You will find that that will be much more nuanced from a multi tomorrow when
we catch up with him. The managed outflow, the managed
situation, although as the assets at the start of trade, what did you pay, three
point three billion, twenty three point three billion for you paid for the one
point three trillion dollars in assets that this institution has dissipation of
the assets has a knock on effect to the massive growth splurge that UBS Credit
Suisse expected to have. This is not as bad as said he expected
the expected 200 billion hundred ten billion to walk out the door.
Wealth management is 524 billion. And you have a smaller portion in the
Swiss Universal Bank of 526. This could have been a lot worse as my
very first take on this. But of course, Danny, from better
experience, when you go to try and move really wealthy clients from an
institution. Let me tell you this.
The road to hell is paved with good intentions.
They promised me a lot and an awful lot of them still owe me an awful lot.
They never move their money. It's damned hard to do.