Credit Suisse Group (CSGN.S) reported its worst annual loss since the 2008 global financial crisis after rattled clients fled in droves, and warned that a further "substantial" loss would come this year.
Battered by one scandal after another, the bank saw a sharp acceleration in withdrawals in the fourth quarter with outflows of more than 110 billion Swiss francs ($120 billion), although it said the picture has been improving.
The wealth management division and investment banking unit will also probably log losses in the first quarter of 2023, it said on Thursday.
Credit Suisse's "operational performance was even worse than feared and the level of outflows quite staggering," Thomas Hallett, an analyst with Keefe, Bruyette & Woods, said in a note to clients.
"With heavy losses to continue in 2023, we expect to see another wave of downgrades and see no reason to own the shares."
For the fourth quarter, Switzerland's second-biggest bank posted a net loss of 1.39 billion francs. That brought its total net loss in 2022 to 7.29 billion francs, marking its second straight year in the red.
Among a slew of scandals in recent years, Credit Suisse has been particularly hard hit by a $5.5 billion loss on U.S. investment firm Archegos in 2021 as well as the freezing of $10 billion worth of supply chain finance funds linked to insolvent British financier Greensill.
