ZURICH (Reuters) - Credit Suisse (CSGN.S) will say as soon as possible whether it will go ahead with plans to float a minority stake of its Swiss bank, Chief Executive Tidjane Thiam told Swiss paper Finanz und Wirtschaft, adding the bank still needs more capital.
“We’re still analyzing,” Thiam said in the interview published late on Tuesday. “We have a broad palette of options after our settlement with the U.S. Department of Justice. We will communicate further details as soon as possible.”
Reuters reported on Friday that the bank’s board of directors was set to decide in April whether to go ahead with the IPO, citing two people familiar with the matter.
A new rights issue or accelerated bookbuild have been cited as possible alternatives to the IPO.
Zurich-based Credit Suisse announced plans to sell 20-30 percent of its highly profitable Swiss business back in October 2015, partly in an effort to raise up to 4 billion Swiss francs ($4 billion) and bolster the group’s capital position.
The chief executive said the bank’s decision over whether to go ahead with the IPO had always been linked to its settlement with U.S. authorities over claims it misled investors in residential mortgage-backed securities it sold in the run-up to the 2008 financial crisis, which was finalised when the bank formally agreed to pay $5.3 billion in January.
While Credit Suisse still needs capital, its required bandwidth is now narrower than the 2 billion to 4 billion Swiss francs previously targeted, Thiam said, without providing a new figure.
Management expects the negative effect of legacy issues that cost the bank two straight years of losses to be significantly reduced by end-2018, said Thiam, who joined the bank in mid-2015.
Reporting by Brenna Hughes Neghaiwi Editing by Ruth Pitchford