ZURICH (Reuters) – Credit Suisse (SIX:) said it was raising capital on Thursday by issuing notes convertible into 203 million shares.
“Our capital position remained solid with a CET1 ratio of 12.2% and a CET1 leverage ratio of 3.8% as per the end of 1Q21,” the bank said in a statement. “However, with the Offering, we expect to further strengthen our capital position in line with our intention to achieve a CET1 ratio of approximately 13% and a minimum CET1 leverage ratio of 4%.”
Credit Suisse has emerged as the bank hardest-hit from exposure to U.S. investment firm Archegos, which collapsed when it could not meet margin calls. Analysts at JPMorgan (NYSE:) said Credit Suisse may face another loss of around $400 million this quarter from unwinding Archegos-linked stocks – an estimate which Credit Suisse has declined to comment on.
That, plus the demise of another client, Greensill Capital, has triggered internal and external probes and the ousting of a swathe of executives.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Need Your Help Today. Your $1 can change life.