Credit Suisse ready to sell Swiss business to raise capital – Financial Times

Oct 15 (Reuters) – Credit Suisse is preparing to sell some of its stake in its domestic Swiss bank in an attempt to cover a capital shortfall of about 4.5 billion Swiss francs ($4.48 billion), the Financial Times reported on Saturday, citing people familiar with the matter.

The parts being considered for sale include a stake in SIX Group, which runs the Zurich Stock Exchange, an 8.6 percent stake in Madrid technology company Allfunds, two specialist Swiss banks Pfandbriefbank and Bank-Now, and Swisscard, a joint venture with American Express, the newspaper added. Cooperation.

“We will update on the progress of our comprehensive strategic review when we announce third-quarter earnings,” Credit Suisse told Reuters in an emailed statement.

Sign up now for free unlimited access to

Last month, the Financial Times reported that the bank had drawn up plans to split its investment bank in three as it tried to escape three years of relentless scandal.

It lost more than $5 billion last year in the collapse of investment firm Archegos, when it also had to suspend client funds linked to defunct financier Greensill Capital.

The bank also intends to sell its famous Savoy hotel on Parade Square in the heart of Zurich’s financial district. The hotel could be worth 400 million Swiss francs, financial blog Inside Paradeplatz reported earlier this month.

A source with direct knowledge of the matter told Reuters in September that Credit Suisse was considering cutting about 5,000 jobs across the group as part of reducing costs.

The bank will unveil its new business strategy in October. 27 announced the third quarter results.

(1 USD = 1.0051 CHF)

Sign up now for free unlimited access to

Reporting by Rhea Binoy in Bengaluru; Additional reporting by Mrinmay Dey; Editing by Clelia Ozier

Our Standard: The Thomson Reuters Trust Principles.

Source link