On Wednesday, Credit Suisse Group AG (ADR) (NYSE: CS), which is the Switzerland’s second-largest bank, said that it planned to raise $4 billion by issuing new shares in the coming weeks to restructure and ease capital concerns.
This plan followed the announcement in October 2015 by Tidjane Thiam, who is the CEO of Credit Suisse and joined the company in 2015. At that time, he announced to raise $6.3 billion in capital and to reduce the banks costs by the end of 2018. The company said it may need to raise around $11.1 billion to restructure.
Mr. Thiam hopes to shift the company’s business model away from the capital-intensive trading and banking, which bears more risks. The company said that it would reach an agreement with shareholders about the capital plans at a meeting on May 18.
“Nobody is more eager than me to get to 2018, to then see in 2019 what the bank can deliver,” Mr Thiam said.
The company announced its financial results for the first quarter on Wednesday. According to the company, net revenues were up 19% to CHF 5.5 billion compared to the same period last year. Net income increased from a net loss of CHF 302 million to CHF 596 million in the first quarter.