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Actionable news in CS: CREDIT SUISSE GROUP,

Credit Suisse prepares substantial capital-raising

Tidjane Thiam, Credit Suisse's new chief executive, is preparing to launch a substantial capital-raising when he unveils his strategic plan for the bank in two weeks' time, according to people briefed on the plan.

While not specifying an amount, they pointed to a poll published last week by analysts at Goldman Sachs concluding that 91 per cent of investors expect the Swiss bank to raise more than 5 billion Swiss francs in new equity.

The capital is likely to be used to absorb losses triggered by a faster restructuring of the Swiss group, the people said. But Credit Suisse will also need higher capital ratios to comply with toughening demands from regulators.

The Swiss authorities are expected to announce an increase of minimum capital ratios over the coming months, which could prove more challenging for the bank than its better capitalized local rival, UBS. Credit Suisse's common equity tier one capital ratio of 10.3 per cent compares with UBS's 13.5 per cent.

Mr Thiam, who took over in the summer, recently brought forward the announcement of his new strategy...


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