HONG KONG, March 2 (Reuters) – Credit score Suisse (CSGN.S) is providing larger deposit charges than its rivals to draw new funds from rich shoppers in Asia, individuals with data of the matter stated, because the embattled non-public financial institution seeks to stem outflows and cease its bankers leaving.
The Swiss financial institution is providing a 6.5% annual charge on new three-month deposits of $5 million or above, stated three sources with data of the matter, who declined to be named as they weren’t authorised to talk to the media.
Bloomberg on Thursday first reported the 6.5% deposit charge provided by the financial institution.
Credit score Suisse can be providing a charge as excessive as 7% for one-year deposits, the sources advised Reuters.
“The banking sector has been responding to international charge hikes with larger charges and Credit score Suisse is totally targeted on offering our shoppers with differentiated recommendation and aggressive options,” a Credit score Suisse spokesperson stated.
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The gives are roughly 100 to 200 foundation factors larger than these of main rivals within the area similar to JPMorgan (JPM.N), UBS (UBSG.S) and Citi Group (C.N), two of the sources and a senior wealth supervisor stated.
Citi and UBS declined to remark. JPMorgan didn’t instantly reply to requests for remark.
The brand new deposit charges are larger than Credit score Suisse’s lending charges in Asia, one of many two sources stated, including that it raises issues about how the enterprise can maintain such a funding hole.
The third supply stated the gives are legitimate till the top of this quarter and solely apply to new money deposits, to not present portfolios.
Complete belongings at Credit score Suisse’s wealth division, which was hit by worse-than-expected 92.7 billion franc outflows within the fourth quarter, fell to 540.5 billion Swiss francs ($575 billion) by the top of final yr from 742.6 billion francs a yr earlier.
Reporting by Selena Li; Modifying by Sumeet Chatterjee, Kirsten Donovan and Edmund Klamann
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