Credit Suisse bank intends to raise capital worth four billion Swiss francs ($4 billion) through the issuance of new shares to qualified investors, including Saudi National Bank (SNB), which has committed to invest up to 1.5 billion Swiss francs ($1.5 billion) to achieve a shareholding of up to 9.9 percent.
“Over 166 years, Credit Suisse has built a powerful and respected franchise but we recognize that in recent years we have become unfocused,” chairman Axel Lehmann said in a statement.
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He said the reassessment of the bank’s future direction included “a radical strategy and a clear execution plan to create a stronger, more resilient and more efficient bank with a firm foundation, focused on our clients and their needs.”
Lehmann said the bank will also work on further improving risk management and control processes across the entire bank, after a series of investments turned sour.
“I am convinced that this is the blueprint for success, helping rebuild trust and pride in the new Credit Suisse.”
Credit Suisse also said it expects to run the bank with approximately 43,000 staff by the end of 2025 compared to 52,000 at the end of September, “reflecting natural attrition and targeted headcount reductions.”
The announcement came as the bank unveiled a third quarter net loss of $4.034 billion Swiss francs.
“This is a historic moment for Credit Suisse. We are radically restructuring the investment bank to help create a new bank that is simpler, more stable and with a more focused business model built around client needs,” new chief executive Ulrich Koerner said in a statement.
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