Credit Suisse plans $15.6-bn capital boost

Swiss banking major Credit Suisse Group AG plans to increase its capital reserves by 15.3 billion Swiss francs ($15.6 billion) in order to allay the concerns raised by the country's central bank in its financial stability report last month.

The Swiss National Bank (SNB) had warned that the Credit Suisse needs to significantly expand its loss-absorbing capital during the current year.

While announcing the second quarter results yesterday, Switzerland's second-largest bank Credit Suisse said it would take decisive measures to improve efficiency and to strengthen its capital position in preparation for Basel III regulatory requirements.

Credit Suisse chairman Urs Rohner commented, ''Unquestioned capital strength is of paramount importance to the Group. Given the current environment, we decided to accelerate the implementation of our capital plans.''

''Today's actions should remove any doubts raised by the Swiss National Bank (SNB) report,'' Rohner said.

The Zurich-based bank reported a net income of 788 million francs for the second quarter, up 2.6 per cent from 768 million last year. Revenue for the quarter dropped 8.7 per cent to 6.3 billion francs, from 6.9 billion francs for the same period.