Arnd Wiegmann
In an effort to attract deposits following an outflow from fleeing Credit Suisse customers, UBS (NYSE:UBS) is offering above-market-rate interest at the bank it acquired in June, according to a media report.
Credit Suisse will pay 1.8% on CHF 50,000 ($54,000) or more held for three months, Reuters reported, citing a person familiar with the bank’s activities. By comparison, Zuercher Kantonalbank offers a 1.34% rate on deposits of at least CHF 100K and Raiffeisen offers 1.2%, Reuters said.
Recall that UBS (UBS) agreed in March to acquire its Swiss rival, at the urging of the Swiss government, as Credit Suisse stood on the verge of collapse when customers continued to pull deposits out of the bank.
Credit Suisse had suffered outflows for months as customers worried about the company’s liquidity amid its attempts to craft a turnaround plan. The deposit outflows accelerated after two U.S. banks, Silicon Valley Bank and Signature Bank, collapsed in March 2023.
During Q2, UBS (UBS) said asset outflows from Credit Suisse’s Wealth Management division continued, but at a slower pace than previous quarters and turned positive in June. Credit Suisse Wealth Management and Swiss Bank, combined, had net inflows of US$18B in Q2, it said.
