C Suisse to raise $6bn as new CEO rings changes

Tidjane Thiam

Credit Suisse, Switzerland's second biggest bank, is to raise a total of 6.05 billion Swiss francs ($6.2 billion) in fresh capital through a rights issue and private placement, as its new chief executive tries to address investors' concerns.

The Zurich-based bank also reported slightly disappointing net income for the three months to September 30 of 779 billion Swiss francs, and core pre-tax profit of 861 million Swiss francs. The bank warned that both wealth management and the investment bank had been impacted by low client activity and adverse market conditions.

Tidjane Thiam, brought in as chief executive in July from insurer Prudential, announced plans to scale back the investment banking business in favor of wealth management, as many in the market had expected.

The bank said in a statement it would "significantly" reduce the use of capital at its investment bank.

Thiam said in a statement: "We are also taking decisive action to strengthen our balance sheet and capital position to the point where it will not be any more a source of concern for our clients, our investors or our regulators."

Thiam had hinted at the possibility of a capital raising in an interview with CNBC shortly after he was appointed.

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