Credit Suisse shares tumbled to a new record low on Monday after Silicon Valley Bank and Signature Bank collapsed.
The Swiss bank fell as much as 15% after taking losses for five straight quarters.
Market Watch reported:
Credit Suisse shares on Monday reached a new record low, falling as much as 15% as investors continued to hammer away at the stock of the Swiss banking giant after the collapse of banks in the U.S.
While SVB Financial and Signature Bank collapsed in the wake of the downturn in the technology and crypto sectors as interest rates rise, Credit Suisse’s difficulties have been of its own making.
Credit Suisse CSGN, -8.73% CS, -4.70% has lost money for five straight quarters and says it’s expecting to post a loss before tax this year. It’s undergoing a big transformation after losing billions lending to the Archegos family office and having to freeze $10 billion worth of funds tied to Greensil Capital. Wealthy clients pulled out about $100 billion from Credit Suisse in the fourth quarter.
According to FactSet, Credit Suisse shares trade at 0.2 estimated 2023 tangible book value. Rival UBS UBS, -4.03% trades at 1.2 times estimated 2023 tangible book value.
Credit Suisse was not the only European bank to see its shares slide: Commerzbank CBK, -12.31% and Banco de Sabadell SAB, -11.12% also slumped, as the broader European bank stock index SX7E, -6.05% fell.
Charles Schwab and dozens of other banks halted trading on Monday.
— Kevin Malone (@Malone_Wealth) March 13, 2023