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