Discussion about a capital increase at Credit Suisse: The Credit Suisse Group is said to be considering a capital increase of possibly more than $1 billion at an “early stage” However, Credit Suisse itself denies that such considerations are ongoing. The bank most recently reported a Common Equity Tier 1 (CET 1) ratio of 13.8 percent, close to the formulated target of 14 percent. Just a year ago, in the wake of the Archegos scandal, Credit Suisse received almost CHF 1.8 billion in fresh equity from shareholders.

The shareholders have given the Credit Suisse leadership a lesson because of the scandals. At the general meeting on April 29, they did not grant discharge to the board of directors and management for the 2020 financial year. However, a special audit on the collapse of the greensill funds was rejected. The corresponding motion submitted by the Ethos Foundation and the Norwegian sovereign wealth fund, on the other hand, was rejected at the General Assembly with a majority of 88.6 percent. The bank had argued that such a move could make it harder to recover outstanding investor funds.

The ailing big bank is still in restructuring mode. On Wednesday, April 27th, as expected, she presented bad results. Once again, CS has to post a significant pre-tax loss, this time of CHF 428 million. Operating income came in at a disappointing 4.4 billion Swiss francs. Operating expenses rose 26 percent to 5.0 billion Swiss francs. An important reason for the increase was provisions for legal risks of 703 million francs.