Credit Suisse shares decline 26%, chairman rules out govt assistance amid contagion fears

Swiss lender Credit Suisse Group AG's shares further declined on Wednesday and were trading 26% lower. The Zurich-based lender's chairman Axel Lehmann said state assistance "isn't a topic" for the bank as it seeks to recover from a string of scandals that have undermined the confidence of investors and clients, a report said on Wednesday.

While speaking at the Financial Sector Conference in Saudi Arabia, Lehmann said it would not be accurate to compare Credit Suisse's problems with the recent collapse of Silicon Valley Bank, particularly because the banks are regulated differently, the Bloomberg report added.

Lehmann's comments come as Credit Suisse's largest shareholder, Saudi National Bank, said it would not buy more shares in the Swiss bank on regulatory grounds.

Trading in the Swiss bank's shares was halted late morning as they fell by a fifth to fresh record lows, having been pummelled earlier in the week in market fallout from the collapse of Silicon Valley Bank.

European bank stocks fell sharply on Wednesday, with embattled Credit Suisse tumbling to a new low, on renewed investor concerns about stresses within the sector triggered by Silicon Valley Bank's sudden collapse.

Regulators and financial executives around the world have sought to assuage contagion fears after tech-focused lender SVB and another U.S. bank failed last week, but worries persist.

A more than 20% drop in Credit Suisse shares led a 6% plus fall in the European banking index, while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, highlighting increasing investor concerns.

The Swiss National Bank declined to comment on Switzerland's second-largest bank.

In the United States, regional and large banks fell in the premarket. First Republic Bank was flat, with peers Western Alliance Bancorp and PacWest Bancorp down 2% and 12%, respectively.

Big banks including JP Morgan Chase, Citigroup and Bank of America were all hit, by between 2% and 4%.

With inputs from Reuters