(Bloomberg) -- Credit Suisse Group AG’s outlook flagging a fourth-quarter loss, and the ongoing outflows in its wealth management business are “concerning,” say analysts at JPMorgan Chase & Co.

The Swiss bank warned it will book a loss of up to 1.5 billion Swiss francs ($1.6 billion) this quarter, and reported further outflows of wealth management funds amid a slump in client confidence, sending its shares 5% lower towards fresh lows.

The bank “is not out of the woods yet in terms of stabilizing the franchise,” write analysts led by Kian Abouhossein. He said he was “perplexed” by the material losses in its investment banking division. JPMorgan has a neutral rating on the stock. 

Credit Suisse is undergoing a sweeping overhaul that will see its investment bank carved up and greater focus placed on private banking, after years of scandals and management missteps. 

Echoing JPMorgan’s view, Vontobel’s analyst Andreas Venditti says “the massive net outflows in wealth management, CS’s core business alongside the Swiss bank, are deeply concerning -- even more so as they have not yet reversed.”

The lender said that as of Nov. 11, net asset outflows were about 6% of the assets under management at the end of the third quarter. That’s equivalent to approximately 84 billion Swiss francs in outflows across wealth and asset management. 

--With assistance from Thyagaraju Adinarayan.

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