Following the bank’s Thursday disclosure of its most recent significant losses and the Swiss regulator’s statement that it was “monitoring the issue very closely,” Credit Suisse shares appeared poised to continue declining on Friday.
The Swiss Market Index’s premarket activity on Friday showed that the bank’s shares were down 1.1%.
Following results that one shareholder deemed “catastrophic,” Credit Suisse’s stock dropped 14.7% on Thursday to 2.77 Swiss francs, valuing the institution at 11.1 billion francs.
On Thursday, Switzerland’s second-largest bank issued another warning, predicting a further “significant” loss this year after customers withdrew billions from the institution, which has been rocked by a string of missteps and scandals.
Although Credit Suisse’s liquidity buffers stabilised the bank and are being rebuilt, the Swiss regulator Finma said in a statement on Thursday that it “monitors banks extremely closely during such situations.”
On Friday, a number of banks lowered their ratings for the shares of Credit Suisse. The decrease in target prices by Morgan Stanley (NYSE: MS), Barclays (LON: BARC), and RBS (LON: NWG) all contributed to the unfavourable perception of Credit Suisse.