Credit Suisse to sell some securitized assets, raise up to $4.06B via new shares

0
14

Credit Suisse Group AG outlined its latest strategic plan on Thursday, its latest attempt to rehabilitate its reputation after a series of scandals and multiple quarters of losses.

The Swiss bank CS, -1.03% CSGN, -0.52% said it will sell a large portion of its securitized products group business to an investor group led by Apollo Global Management Inc., APO, -0.31% and intends to raise up to 4 billion Swiss francs ($4.06 billion) through issuing new shares.

Saudi National Bank has committed to invest up to CHF1.5 billion to reach a shareholding of 9.9%, Credit Suisse said.

The Zurich-based bank said it aimed to reduce the group’s cost base by 15%, or around CHF2.5 billion, to around CHF14.5 billion in 2025.

It said it would target strengthening its capital ratios, with a common equity Tier 1 ratio of 13.5% by 2025.

It will also resurrect the First Boston brand as an independent capital markets and advisory bank, it said.

The bank estimates restructuring charges, software and real-estate impairments in connection with the transformation of CHF2.9 billion over a period from the fourth quarter to 2024, funded through divestments, exits, and existing resources.

The lender will hold an extraordinary shareholder meeting on Nov. 23.

The update comes as Credit Suisse posted a net loss of more than CHF4 billion in its third-quarter results.

Write to Ed Frankl at edward.frankl@dowjones.com

This article was originally published by Marketwatch.com. Read the original article here.

Previous articleGerman health minister releases adult use cannabis proposal
Next articleDow Jones Newswires: STMicroelectronics net profit more than doubles on strong chip demand

LEAVE A REPLY

Please enter your comment!
Please enter your name here