Credit Suisse (CSGN.S) got a positive market reaction on Friday after the embattled bank successfully completed the final part of its 4 billion Swiss franc ($4.28 billion) fund raising and said its liquidity levels had been boosted.
Its shares opened 2.5% higher after Switzerland’s second biggest bank said cost cuts were well under way, while its liquidity ratios had improved – a concern after outflows of client funds in recent weeks.
Chief Executive Ulrich Koerner hailed the “important strides” made since the bank outlined its turnaround plan on Oct. 27.
“The successful completion of the capital increase is a key milestone for the new Credit Suisse,” Koerner said in a statement on Thursday.
“It will allow us to further support our strategic priorities from a position of capital strength and create a simpler, more stable and more focused bank built around client needs, and generating value for shareholders,” he added.
Shareholders exercised 98.2% of their subscription rights, giving a boost to managers tasked with getting the bank back on track after the biggest crisis in its 166-year history.
Gross proceeds of rights offering, the second part of Credit Suisse’s fund raising, were 2.24 billion francs.
This report’s information was first seen on REUTERS; to read more, click this link.
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