Credit Suisse set to launch large capital raising
(9 October 2015 – Switzerland) To help fund a restructuring, Credit Suisse plans to tap investors for a "substantial" capital raising, reports this week have said.
Since taking charge of Credit Suisse in July, new Chief Executive Tidjane Thiam has signalled a desire to focus on banking for the world's wealthy, particularly in Asia, amid talk of a need to raise cash to improve its capital position.
It has not been specified how much Thiam will try to raise when he unveils the plan on October 21, however investors expect the Swiss based bank to raise more than 5 billion Swiss francs (A$7.12 billion) in new equity.
Credit Suisse said in a statement the bank was still evaluating strategic options for the bank as well as its capital usage and requirements, and that it would present the results of the review later this month.
According to the Financial Times, the capital would not be used to fund a rumoured takeover of Swiss private bank Julius Baer, with Thiam saying he did not see the logic behind the move.
Thiam will look to trim costs through investment in technology as well as cut down on division bosses and install regional heads across business lines.
In addition focussing more on wealth management at the expense of investment banking, Thiam also wished to establish a substantial asset management operation within the bank, the reports said.
Thiam could also cut less profitable units like its U.S. broker-dealer unit.
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