“The outflows basically have stopped. What we saw is two or three weeks in October, voom, and since then a flattening out. They have started gradually coming back, particularly in Switzerland.”
That’s Axel Lehmann, the chairman of Credit Suisse, talking to Bloomberg Television, in an interview that aired Friday. The company’s stock price has continued to plumb new record lows as it raises 4 billion francs and sets off on a new strategic plan.
shares on Friday rose 4% in Zurich, but the stock has lost two-thirds of its value this year, and skidded 39% in just the last three months.
He said share-price volatility will continue until the bank completes the capital increase.
Lehmann pointed out the price-to-book ratio is about 0.2, whereas its peers are trading around book. “There’s no reason that we cannot catch up and go back to that level. I cannot predict when that is happening but the upside potential is there.”
Lehmann maintained that has actually lost very few clients entirely. “They might have withdrawn some money from us,” he said. “When we do well, they’ll come back, at least to a significant part.”