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Credit Suisse to raise $4 bln in rights issue, ditches Swiss unit IPO
April 26, 2017 / 5:25 AM / 5 months ago

Credit Suisse to raise $4 bln in rights issue, ditches Swiss unit IPO

ZURICH, April 26 (Reuters) - Credit Suisse will raise around 4 billion Swiss francs ($4 billion) through a rights offering to catch up to European rivals on capital, ditching plans to float a minority stake in its Swiss banking unit.

“We expect the capital increase will strengthen our pro forma look-through CET1 ratio to approximately 13.4 percent and our pro forma look-through tier 1 leverage ratio to approximately 5.1 percent, based on our end-1Q17 risk-weighted assets and leverage exposures,” Zurich-based Credit Suisse said in a statement on Wednesday.

Switzerland’s second-biggest bank also reported net profit of 596 million francs for the first three months of 2017, its highest quarterly profit since a sweeping restructuring by Chief Executive Tidjane Thiam and beating the average estimate in a Reuters poll of analysts.

($1 = 0.9919 Swiss francs)

Reporting by Joshua Franklin; Editing by Michael Shields

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