Wednesday, July 18, 2012

Credit Suisse to raise capital, sees profits grow

FILE - In this April 3, 2012 file picture the logo of Swiss bank Credit Suisse is photographed at a building in Zurich, Switzerland. Credit Suisse Group says it is raising 8.7 billion Swiss francs (US $8.9 billion) to bolster its capital reserves. The Swiss bank says 3.8 billion francs come from the placement of so-called contingent convertible bonds underwritten by investors from Qatar, Saudi Arabia and Singapore. The Zurich-based bank's announced WednesdayJuly 18, 2012 that its second-quarter earnings attributable to shareholders increased 2.6 percent to 788 million francs. (AP Photo/Keystone/Alessandro Della Bella,File)

FILE - In this April 3, 2012 file picture the logo of Swiss bank Credit Suisse is photographed at a building in Zurich, Switzerland. Credit Suisse Group says it is raising 8.7 billion Swiss francs (US $8.9 billion) to bolster its capital reserves. The Swiss bank says 3.8 billion francs come from the placement of so-called contingent convertible bonds underwritten by investors from Qatar, Saudi Arabia and Singapore. The Zurich-based bank's announced WednesdayJuly 18, 2012 that its second-quarter earnings attributable to shareholders increased 2.6 percent to 788 million francs. (AP Photo/Keystone/Alessandro Della Bella,File)

FILE - In this March 12, 2012 file picture the logo of Swiss bank Credit Suisse is photographed on a building in Zurich, Switzerland. Credit Suisse Group says it is raising 8.7 billion Swiss francs (US $8.9 billion) to bolster its capital reserves. The Swiss bank says 3.8 billion francs come from the placement of so-called contingent convertible bonds underwritten by investors from Qatar, Saudi Arabia and Singapore. The Zurich-based bank's announced WednesdayJuly 18, 2012 that its second-quarter earnings attributable to shareholders increased 2.6 percent to 788 million francs. (AP Photo/Keystone/Alessandro Della Bella, File)

(AP) ? Credit Suisse Group, Switzerland's second-largest bank, has reported a 2.6 percent rise in second-quarter profits and announced it will try to raise 8.7 billion Swiss francs ($8.9 billion) from investors to boost its capital buffers.

The Zurich-based bank said Wednesday that its second-quarter earnings attributable to shareholders had increased to 788 million francs ($806 million) from 768 million francs in the same quarter of 2011.

Traders cheered the news, pushing shares on the Zurich exchange up by more than 6 percent, to 18.20 francs ($18.62) by mid-morning. Until Wednesday, the bank's shares had fallen 22 percent this year.

Credit Suisse said 3.8 billion francs of the capital it seeks to raise would come from the placement of so-called contingent convertible bonds underwritten by investors from Qatar, Saudi Arabia and Singapore. A month ago, the Swiss central bank noted that Credit Suisse's capital reserves were below international norms.

Chief Executive Brady Dougan said the measures "should completely put any capital questions to rest" by almost doubling the bank's capital ratio compared with the first quarter.

Credit Suisse also said it plans to save 1 billion francs by the end of 2013, after cutting 2 billion francs in costs by mid-year 2012 and announcing plans last year to shed 3,500 jobs.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-07-18-EU-Switzerland-Credit-Suisse/id-c887fda984c841eda255b25b7c9fdb68

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