Credit Suisse share price inches up as boss Tidjane Thiam says bank will decide on capital raise as soon as possible

 
Caitlin Morrison
Follow Caitlin
SWITZERLAND-BANKING-CREDITSUISSE
Credit Suisse boss Tidjane Thiam spoke to investors today (Source: Getty)

Credit Suisse will make a decision about its capital raising plans "as soon as possible", the bank's chief executive said today.

The bank previously said it wants to raise up to 4bn Swiss francs (£3.2bn) through an IPO of a minority stake in its Swiss banking division, although it has also considered an accelerated bookbuilding as an alternative to pursuing the separate listing.

Credit Suisse made a loss of SFr 2.7bn in 2016, cutting its common equity tier 1 ratio, a measure of balance-sheet strength, and therefore increasing the pressure to raise capital.

At an investor event in Hong Kong, chief exec Tidjane Thiam said a decision on the capital raising would be made "as soon as possible", Reuters reported.

"We understand that the market needs clarity on that and we are very keen to give it," he said. "We are working diligently but as you can imagine it's a complex decision, we also wanted to take our time to make sure that we give a considered answer."

Thiam took over at Credit Suisse in 2015, after heading up insurer Prudential for six years. At the Pru, Thiam pursued an agenda of aggressive growth in the Asian market and similarly at Credit Suisse, he is leading the charge on expanding in China.

"We are bullish on China, always have been, always will be, medium to long term," he said. "That doesn't mean that China is immune to cycles to the world economy or commodity cycles, but we think the fundamentals are extremely positive."

Shares in Credit Suisse went up 0.8 per cent in early trading.

Related articles