ZURICH: Credit Suisse is in the early stages of weighing options to bolster its capital after a string of losses have eroded its financial buffers, two people with knowledge of the matter told Reuters.
The size of the increase would be likely to exceed 1 billion Swiss francs ($1.04 billion), but this has not yet been determined, said one of the people, who declined to be named because the deliberations are still internal.
The cash injection would help Switzerland's second-biggest bank to recover from billions of losses in 2021 and a series of costly legal headaches.
Selling shares to some of its major existing investors is the preferred option, but Credit Suisse has not ruled out tapping all shareholders, this person said.
Credit Suisse sees $600mn hit from Bermuda court case
A sale of a business, such as Credit Suisse's asset management division, is also a possibility, the other person said. The bank had not yet decided on any potential action, they said.
Any transaction was envisaged for the second half of this year. “Credit Suisse is currently not considering raising additional equity capital," the bank said in a statement.
"The Group is robustly capitalised with a CET1 ratio of 13.8% and a CET1 leverage ratio of 4.3%.
Asset Management is an essential part of our group strategy presented last November, with four core divisions.”
Comments
Comments are closed.