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Credit Suisse has no plans to raise capital - source

Published 04/27/2022, 06:18 AM
Updated 04/27/2022, 06:21 AM
© Reuters. FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at an office building in Zurich May 9, 2014. REUTERS/Arnd Wiegmann
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ZURICH (Reuters) - Credit Suisse (SIX:CSGN) has no plans for a capital increase, a source familiar with the matter told Reuters on Wednesday, after the Swiss bank reported a dip in capitalisation.

As the bank reported a 273 million Swiss franc ($283.6 million) first-quarter loss on Wednesday, executives said capital could remain constrained over the next six months as the bank continues to make significant outlays towards compliance and risk.

© Reuters. FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at an office building in Zurich May 9, 2014. REUTERS/Arnd Wiegmann

Its core capital metric, or common equity tier 1 ratio, dipped to 13.8% from 14.4% at end-2021. As part of its 2024 strategic plan, it is aiming for a CET1 ratio above 14%.

Maintaining strong capital as the bank undergoes transition would be important, the source said. However, the bank has no plans for a capital raise, said the person, adding its capital ratio remained higher than many U.S. peers and in line with European competitors.

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