Credit Suisse sold off over 20% in ‘jittery market,’ says Citi

Credit Suisse (CS) shares sold off by over 20% today in a "jittery market" following the failure of SVB Financial (SIVB), Citi analyst Andrew Coombs tells investors in a research note. The analyst says the Chairman of Saudi National Bank confirming the bank had no plans to put further money into Credit Suisse due to regulatory restrictions "appears insufficient to explain the magnitude of the market move." Citi notes that at the end of 2022, Credit Suisse had CHF 234B in deposits, almost all of which have contractual maturity less than year. The proportion of deposit balances that are not covered by national deposit guarantee schemes is not disclosed, it points out. One would expect this to be higher than most European banks due to Credit Suisse’s focus on high- and ultra-high net worth customers, Citi says. The firm keeps a Neutral rating on Credit Suisse shares.