MARKET INSIDER
Stocks making the biggest moves premarket: Credit Suisse, Lennar, PacWest & more
PUBLISHED WED, MAR 15 20238:09 AM EDTUPDATED 3 MIN AGO
Pia Singh
@PIA_SINGH_
Axel Lehmann, chairman at Credit Suisse Group AG, speaks during the Institute of International Finance (IIF) annual membership meeting in Washington, DC, on Friday, Oct. 14, 2022.
Axel Lehmann, chairman at Credit Suisse Group AG, speaks during the Institute of International Finance (IIF) annual membership meeting in Washington, DC, on Friday, Oct. 14, 2022.
Ting Shen | Bloomberg | Getty Images
Check out the companies making headlines before the bell.
Credit Suisse
— Shares of Credit Suisse were down 21.5% after the firm’s biggest backer, Saudi National Bank, said it won’t provide it with further financial help. Credit Suisse and several other European banks, including Societe Generale , Italy’s Monte dei Paschi and UniCredit, were halted from trading as prices plummeted.
Bank of America, Morgan Stanley, Wells Fargo
— Shares of larger financials were in lower early Wednesday as the Credit Suisse tumble sent ripples across the global banking sector. Bank of America lost 2.9%, Morgan Stanley dropped 3.2% and Wells Fargo declined by nearly 4.2%.
Lennar
— Shares of the homebuilder rose more than 1% in premarket trading after Lennar beat estimates on the top and bottom lines for its fiscal first quarter. Lennar reported $2.06 in earnings per share on $6.49 billion of revenue. Analysts surveyed by Refinitiv expected $1.55 in earnings per share on $5.93 billion of revenue. Home deliveries increase 9% year over year, but gross margin and new orders decreased.
PacWest Bancorp, Comerica, KeyCorp
— Several regional banks led Wednesday’s fall after rallying on Tuesday. PacWest and Comerica lost 7.7% and 3.4%, respectively. KeyCorp’s stock price dropped 1.4%, Regions Financial
was down 4.2% and Zions Bancorp lost 5.5%. Shares of San Francisco-based First Republic bucked the trend, gaining 3.8%.
Royal Caribbean
— Shares of the cruise line were down 2.8%. The company recently refunded guests after mistakenly offering a non-existent ‘Premier Pass’ on its website. The company also announced it would be expanding its sales team. Rival cruise operators were also down.
— CNBC’s Hakyung Kim and Jesse Pound contributed reporting.
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BANKS
Credit Suisse shares tank after Saudi backer rules out further assistance
PUBLISHED WED, MAR 15 2023 6:29 AM EDT ... UPDATED 8:15 AM EDT
Written by: Elliot Smith @ELLIOTSMITHCNBC, Hannah Ward-Glenton @HANNAHSWG and Sam Meredith @SMEREDITH19
KEY POINTS
- Shares of embattled bank Credit Suisse hit another all-time low for a second consecutive day.
- Credit Suisse’s biggest backer, Saudi National Bank, has said it won’t provide further financial help for the bank.
- Speaking to CNBC’s Hadley Gamble during a panel session in Riyadh on Wednesday morning, Credit Suisse Chairman Axel Lehmann declined to comment on whether his firm would need any sort of government assistance in the future.
Commuters cycle past a Credit Suisse Group AG bank branch in Basel, Switzerland, on Tuesday, Oct. 25, 2022. Credit Suisse will present its third quarter earnings and strategy review on Oct. 27.
Commuters cycle past a Credit Suisse Group AG bank branch in Basel, Switzerland, on Tuesday, Oct. 25, 2022. Credit Suisse will present its third quarter earnings and strategy review on Oct. 27.
Stefan Wermuth | Bloomberg | Getty Images
Shares of Credit Suisse on Wednesday hit another all-time low for a second consecutive day, dropping by more than 24% at one point during the session.
Trading in the bank’s plummeting shares was halted several times throughout the morning. The stock recovered slightly by around midday London time but was still down over 20% for the session.
Several Italian banks were also subject to automatic trading stoppages after sharp declines on Wednesday, including UniCredit
, Finecobank and Monte Dei Paschi
.
Credit Suisse’s largest investor, Saudi National Bank, said it could not provide the Swiss bank with any further financial assistance, according to a Reuters report, sparking the latest leg lower.
“We cannot because we would go above 10%. It’s a regulatory issue,” Saudi National Bank Chairman Ammar Al Khudairy told Reuters Wednesday. However, he added that the SNB is happy with Credit Suisse’s transformation plan and suggested the bank was unlikely to need extra money.
The Saudi National Bank took a 9.9% stake in Credit Suisse last year as part of the Swiss bank’s $4.2 billion capital raise to fund a massive strategic overhaul aimed at improving investment banking performance and addressing a litany of risk and compliance failures.
Meanwhile, speaking to CNBC’s Hadley Gamble during a panel session in Riyadh on Wednesday morning, Credit Suisse Chairman Axel Lehmann declined to comment on whether his firm would need any sort of government assistance in the future.
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When asked if he would rule out some kind of assistance, Lehmann answered, “That’s not the topic.”
“We are regulated, we have strong capital ratios, very strong balance sheet. We are all hands on deck. So that’s not the topic whatsoever.”
‘Material weaknesses’
Investors are also continuing to assess the impact of the bank’s Tuesday announcement that it had found “material weaknesses” in its financial reporting processes for 2022 and 2021.
The embattled Swiss lender disclosed the observation in its annual report, which was initially scheduled for last Thursday but was delayed by a late call from the U.S. Securities and Exchange Commission.
The SEC conversation related to a “technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019, as well as related controls.”
In late 2022 the bank disclosed that it was seeing “significantly higher withdrawals of cash deposits, non-renewal of maturing time deposits and net asset outflows at levels that substantially exceeded the rates incurred in the third quarter of 2022.”
Credit Suisse saw customer withdrawals of more than 110 billion Swiss francs in the fourth quarter, as a string of scandals, legacy risk and compliance failures continued to plague it.
Government assistance is 'not a topic' for us, Credit Suisse chairman says
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VIDEO01:21
Government assistance is ‘not a topic’ for us, Credit Suisse chairman says
Correction: This story has been updated with the correct figure for Credit Suisse’s capital raise.
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