Credit Suisse boosts capital by 930m Swiss francs

 
City A.M. Reporter
Credit Suisse said today it had increased common equity by more than expected after completing two of several previously announced measures to boost its capital base in response to criticism from the Swiss National Bank (SNB).

The bank said it generated some 930m Swiss francs (£607m), ahead of an 800m Swiss franc target, by swapping deferred payments in an employee incentive plan into shares, and through security repurchases.

In July, Credit Suisse announced steps including issuing convertible bonds and bringing forward an exchange of hybrid capital notes that would boost capital by 8.7bn Swiss fransc immediately. Other actions, such as asset sales, paying bonuses in shares and earnings-related impacts, were expected to add a further 6.6bn by the end of the year.

The SNB sent Credit Suisse shares tumbling 10 per cent on 14 June when it said the bank should boost its loss-absorbing capital base this year by cutting risk, suspending dividends or issuing shares.

The bank disagreed with the "style and substance" of the SNB's report, but realised it would be prudent to act more decisively to bolster capital, Credit Suisse chief executive Brady Dougan said.