Frankfurt - Credit Suisse investors face a long wait for the bank to get back on after a string of scandals wiped billions off its market value and piled pressure on management.

Switzerland's second-largest bank claimed that it can create value by serving its wealthy clients with "care and entrepreneurial spirit". This did not convince the market, seeing a plunge in its share price to nearly a third in a year, taking out some 10 billion Swiss francs ($11 billion) off its valuation.

Other big European banks, held up by the prospect of rising interest rates, gained almost 50% in stock market value over the same period. Even Credit Suisse’s own cross-town Zurich rival UBS has left the bank for dust.

Stefan Sauerschell, a bond investor with Union Investment, said the bank has a long list of scandals and problems. The bank which was founded in 1856, has 48,770 employees and 3,510 relationship managers around the world.

Credit Suisse reported a worse-than-expected $2.2 billion quarterly loss and warned of dreary prospects for 2022. The bank also said earnings would be hit by restructuring costs and pay.

The bank racked up a 1.6 billion franc loss as a result of the collapse of $10 billion in supply chain finance funds linked to insolvent British finance firm Greensill and a $5.5 billion hit from the implosion of investment fund Archegos.

Proxy adviser Ethos was critical of Credit Suisse's decision not to publish its investigation into the Greensill affair.

"The bank should restore confidence with its shareholders and stakeholders by providing transparency on the roots and causes of the problems," Ethos's Vincent Kaufman said in an emailed response to Reuters.

Thomas Gottstein, who became Credit Suisse chief executive in 2020, said after the results this week that he was confident it was well positioned to grow and that risk management was at "the very core of its DNA".
-Reuters