New money flows at Credit Suisse likely to slow - report
Lower investment banking referrals, particularly in relation to a lack of initial public offerings, could undermine new money flows into Credit Suisse’s wealth unit, according to analysts at Keefe, Bruyette & Woods in London.
KBW has forecast inflows of SFr6bn in the first quarter, around half the previous year’s level.
Nevertheless, this would be around SFr4bn more than achieved in the last quarter of 2008, when inflows were hurt by clients moving rapidly to deleverage after the collapse of Lehman Brothers.
The numbers are also considerable better than what KBW forecasts for UBS, where outflows are predicted to reach SFr6bn from the bank’s Swiss and international wealth units in the first quarter of 2009.
New money flows for the whole of last year at Credit Suisse’s wealth unit were SFr42.3bn, compared with an outflow of around SFr100bn at UBS.
Earlier this week, Credit Suisse said it would seek shareholders’ approval at its annual general meeting on April 24 to issue up to 100 million shares of equity capital, or 10% of its capital, "for the purpose of financing the acquisition of companies”.
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