Credit Suisse Group AG (CSGN), Switzerland’s second-biggest bank, said it plans to boost capital by 15.3 billion Swiss francs ($15.6 billion) by the end of the year after the Swiss central bank last month urged a “marked increase.” The shares rose as much as 6 percent.
The company will also cut an additional 1 billion francs in costs at the investment bank and private bank by the end of 2013, the Zurich-based bank said in an e-mailed statement today. Net income in the second quarter rose to 788 million francs from 768 million a year earlier, it said.
Credit Suisse Chief Executive Officer Brady Dougan said the capital measures, which include the sale of 3.8 billion-franc mandatory convertible notes, will almost double the bank’s capital ratio from the level at the end of the first quarter, which the Swiss National Bank said was below international peers. The bank is cutting more costs after announcing last year plans to cut 3,500 jobs and slash 2 billion francs in expenses.
“Concerns in the market about Credit Suisse’s capital position should take the backseat thanks to the measures announced today,” Andreas Venditti, an analyst at Zuercher Kantonalbank AG, wrote in a note to clients. “It’s positive in our view.”
Credit Suisse was up 5.5 percent to 18.08 francs by 9:37 a.m. in Zurich trading, after falling 22 percent this year through yesterday.
Bloomberg
