<a href="https://www.thenationalnews.com/business/banking/2023/03/20/how-credit-suisses-166-year-history-ended/">Credit Suisse</a> reported 61.2 billion Swiss francs ($69 billion) of outflows in the first quarter that ended its 167-year history as Switzerland's second largest lender and forced a shotgun wedding with rival <a href="https://www.thenationalnews.com/business/banking/2023/03/29/ubs-brings-back-sergio-ermotti-as-ceo-after-credit-suisse-takeover/" target="_blank">UBS</a>. In its regulatory <a href="https://www.credit-suisse.com/media/assets/corporate/docs/about-us/media/media-release/2023/04/q1-23-press-release-en.pdf" target="_blank">filing</a> on Monday, Credit Suisse said it had net asset outflows of 47.1 billion francs ($52 billion) at its wealth management division in the three-month period to the end of March, which was driven by outflows across all regions. Deposit outflows represented 57 per cent of its wealth management unit and Swiss Bank net asset outflows in the first quarter of this year. The bank also registered a 1.32 billion franc impairment charge in its wealth management unit in the quarter. The outflows “have moderated but have not yet reversed” as of April 24, 2023, it said. Credit Suisse, which had already lost about 110bn francs of assets in the fourth quarter of last year, said net income attributable to shareholders was 12.43 billion francs in the first quarter, compared to a 273 million net loss in the same period a year earlier and a net loss of 1.39 billion francs in the last three months of 2022. “In light of the <a href="https://www.thenationalnews.com/business/banking/2023/03/19/ubs-acquires-credit-suisse-for-323-billion/" target="_blank">merger</a> announcement, the adverse revenue impact from the previously disclosed exit from non-core businesses and exposures, restructuring charges and funding costs, Credit Suisse would also expect the investment bank and the group to report a substantial loss before taxes in the second quarter of 2023 and 2023,” it said. Credit Suisse said <a href="https://www.credit-suisse.com/media/assets/corporate/docs/about-us/media/media-release/2023/04/q1-23-press-release-en.pdf" target="_blank">actual results</a> would depend on a number of factors. These include the performance of its investment banking and wealth management divisions; deposit or net asset flows; the continued exit of non-core positions; goodwill, software and other impairments. Other elements that may affect overall results in the next quarter and year include litigation; regulatory actions; credit spreads and related funding costs; the usage and availability of the Swiss National Bank liquidity facilities; the impact of continued voluntary and involuntary employee attrition and the outcome of certain other items, including potential real estate sales. Last month, Swiss regulators jumped in to ring-fence Credit Suisse by paving the way for it be absorbed by UBS for $3.2 billion, amid a crisis of confidence in banking, following the <a href="https://www.thenationalnews.com/business/banking/2023/03/13/silicon-valley-bank-depositors-funds/" target="_blank">collapse of several lenders in the US</a>. The Swiss National Bank agreed to lend UBS up to 100 billion Swiss francs to help it take over Credit Suisse, while Swiss regulator Finma erased $17 billion worth of Credit Suisse’s bonds and scrapped the need for shareholders to vote on the agreement. Under the terms of the March 19 merger agreement, all shareholders of Credit Suisse will receive one share in UBS for 22.48 shares in Credit Suisse. UBS estimates that the <a href="https://www.ubs.com/global/en/media/display-page-ndp/en-20230319-tree.html">combined invested assets</a> will total $5 trillion, with the merged lender being twice the size of Switzerland’s economy. In its statement on Monday, Credit Suisse said it and <a href="https://www.credit-suisse.com/about-us-news/en/articles/media-releases/acquisition-klein-group-llc-appointment-michael-klein-csfb-202302.html" target="_blank">Michael Klein</a> had mutually agreed to terminate the $175 million acquisition of The Klein Group, the investment banking business of Michael Klein, by Credit Suisse in light of the merger with UBS. Credit Suisse said the Swiss Federal Council instructed the Swiss Federal Department of Finance to cancel or reduce the outstanding variable remuneration for the top three levels of management at Credit Suisse on April 5. The bank said as of March 31, 2023, it had net borrowings of 108 billion francs provided by Switzerland's central bank after repayments of 60 billion francs in the quarter, with further repayments of 10 billion as of April 24, 2023.