Credit Suisse, Switzerland's second-biggest bank, has reported a net loss for 2022 of 7.3 billion Swiss francs ($7.94 billion) - its worst annual loss since the 2008 financial crisis.
Among the reasons cited for their financial performance are heavy losses, scandals, and unprecedented customer withdrawals.
Credit Suisse's CEO, Ulrich Körner, has cancelled annual bonuses for top executives, and the bank has cut its total 2022 bonus pool by 50%.
Reports suggest that executives and about 500 senior managers are in line to share a 350 million Swiss franc payout if the bank's restructuring programme proves successful.
Credit Suisse's loss for the fourth quarter of 2022 came in at over 1.3 billion Swiss francs, and the bank has warned of another substantial loss this year.
The bank has faced setbacks in recent years, including losses tied to the housing market and trading disasters, and criminal charges related to fraud-laden loans.
In response, Credit Suisse has laid off thousands of employees and announced a sweeping plan to refocus their business on managing the fortunes of wealthy clients.
The Zurich-based bank also announced the $175 million purchase of the investment banking business of U.S.-based M. Klein & Co. and plans to roll those operations into the revived CS First Boston investment bank.
However, unless Credit Suisse wins back the confidence of wealthy clients, it may be time to start thinking about alternatives to their current turnaround strategy.
While CEO Ulrich Körner is committed to his plan to cut costs and refocus the bank on its more stable units, some sources suggest that the plan may not be enough to save Credit Suisse.
Unless they can regain the confidence of wealthy clients, it may be time to explore alternative options.
Credit Suisse has been hit hard by a string of scandals, management upheaval, and losses in five of the past eight years.
While some reports suggest CEO Körner is doing what he promised, more recent losses and continued customer withdrawals may threaten the bank's chances for a full recovery.
Despite a 50% reduction in their 2022 bonus pool, some executives and senior managers are reportedly still in line for a 350 million Swiss franc payout if the bank's restructuring is successful.