Shares pared losses by 1556 GMT to trade down 2.9 percent, a steeper drop than the European banking sector index <.SX7P.

Credit Suisse had pointed out to some analysts on Tuesday seasonally higher expenses in the quarter and continued outflows from external asset managers, while cautioning against a read-across from U.S. peers for its investment bank in Asia, the sources said. A Credit Suisse spokeswoman declined to comment.

Zurich-based Credit Suisse reports fourth-quarter results on Feb. 14.

(Reporting by Joshua Franklin, Oliver Hirt and Rupert Pretterklieber; Editing by Michael Shields)