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Credit Suisse prepares Swiss business sales to raise capital - FT

Published 10/15/2022, 06:24 AM
Updated 10/15/2022, 06:25 AM
© Reuters. FILE PHOTO: A clock is seen near the logo of Swiss bank Credit Suisse at the Paradeplatz square in Zurich, Switzerland October 5, 2022. REUTERS/Arnd Wiegmann/File Photo
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(Reuters) - Credit Suisse is preparing to sell parts of its Swiss domestic bank as it attempts to close a capital hole of around 4.5 billion Swiss francs ($4.48 billion), the Financial Times reported on Saturday, citing people familiar with the matter.

The parts that are being considered for sale include a stake in the SIX Group, which runs the Zurich stock exchange, an 8.6% holding in Madrid-based tech company Allfunds, two specialist Swiss banks, Pfandbriefbank and Bank-Now and Swisscard, a joint venture with American Express (NYSE:AXP), the newspaper added.

"We will update on progress on our comprehensive strategy review when we announce our third-quarter earnings," Credit Suisse told Reuters in an emailed statement.

Last month FT reported that the bank had drawn up plans to split its investment bank in three, as it attempts to emerge from three years of relentless scandals.

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

The bank is also looking to sell its famed Savoy Hotel, located on Paradeplatz in the centre of Zurich's financial district. The hotel could be worth 400 million Swiss francs, as reported by finance blog Inside Paradeplatz early this month.

Credit Suisse is considering cutting around 5,000 jobs across the group, as part of a cost reduction drive, a source with direct knowledge of the matter told Reuters in September.

© Reuters. FILE PHOTO: A clock is seen near the logo of Swiss bank Credit Suisse at the Paradeplatz square in Zurich, Switzerland October 5, 2022. REUTERS/Arnd Wiegmann/File Photo

The bank is due to present its new business strategy on Oct. 27, when it announces third-quarter results.

($1 = 1.0051 Swiss francs)

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