Credit Suisse, a leading financial services company, has hinted that profitability could be hit in the fourth quarter by a drop in asset management fees.
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The Swiss bank in its financial report released late on Wednesday, made this known.
The bank warned that there would be reduced profitability as a result of decreased fee revenue for the group due to lower assets values because of adverse market movements in client portfolios in the third quarter
Along with its restructuring plan, Credit Suisse last month revealed that social media rumors had led to client asset outflows in the first two weeks of October that substantially exceeded third-quarter rates.
The bank said these outflows had since reduced, but not yet reversed, contributing to the decrease in assets under management.
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Credit Suisse had already warned of a likely net loss in the fourth quarter, partly owing to costs associated with its planned strategic transformation including withdrawals from non-core businesses.
