Shares of Credit Suisse (NYSE: CS) continued on their downward trajectory in morning trading on Wednesday as the beleaguered investment bank gave a business update. The bank stated that in Q4, it expects a substantial loss before taxes of up to approximately CHF 1.5 billion.
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CS added that this loss is a result of significant asset outflows and costs incurred due to its restructuring. As of November 11, net asset outflows were around 6% of CS’s assets under management (AUM) at the end of Q3.
The bank stated that it was also making headway in reducing its costs by 15%, or CHF 2.5 billion, in 2025. As a part of this restructuring, CS expects to incur restructuring charges, software, and real estate impairments of CHF 250 million in Q4.
In addition, Credit Suisse’s shareholders also approved a plan to issue more than 2.23 billion new shares to raise around CHF 4 billion to fund its restructuring.
As indicated by the above graphic, CS shares have more than halved in value this year.
