Credit Suisse New CEO May Do CHF4b Capital Increase, KBW Says
2015-06-23 06:50:27.309 GMT
By Chris Malpass
(Bloomberg) -- Credit Suisse’s new CEO Tidjane Thiam may
make changes including a CHF4b capital increase in 3Q that will
boost CET1 ratio by more than 200bps to 12%, Keefe, Bruyette &
Woods says in note.
* Capital increase would immediately reassure investors,
clients; would also provide “fire power” for any asset
management M&A
* Says CS needs a multi-year revamp plan to de-risk IB, boost
ROE to 11.3%
* New rules could see ROE drop to 9.9%
* Says revamp should focus on IB fixed-income products and on
shedding CHF44b in gross RWAs, CHF171b in leveraged assets
* IB businesses that need deleveraging are macro,
securitization, credit and prime services
* Says changes should take place over 4 years
* Reiterates outperform, raisees PT to CHF30 vs CHF28
* 11 buys, 20 holds, 7 sells: Bloomberg data
* EARLIER: Credit Suisse sets sights on UBS in battle over
private banking
* NOTE: Stock up 6.2% YTD vs UBS up 20%, SX7P up 17%
* NOTE: Barclays says capital gap priced in at CS, not at BNP,
SocGen
* NOTE: RBC prefers Credit Suisse, Nordea most SocGen least
For Related News and Information:
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--With assistance from Jeffrey Vögeli in Zurich.
To contact the reporter on this story:
Chris Malpass in Berlin at +49-30-70010-6234 or
cmalpass@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
2015-06-23 06:50:27.309 GMT
By Chris Malpass
(Bloomberg) -- Credit Suisse’s new CEO Tidjane Thiam may
make changes including a CHF4b capital increase in 3Q that will
boost CET1 ratio by more than 200bps to 12%, Keefe, Bruyette &
Woods says in note.
* Capital increase would immediately reassure investors,
clients; would also provide “fire power” for any asset
management M&A
* Says CS needs a multi-year revamp plan to de-risk IB, boost
ROE to 11.3%
* New rules could see ROE drop to 9.9%
* Says revamp should focus on IB fixed-income products and on
shedding CHF44b in gross RWAs, CHF171b in leveraged assets
* IB businesses that need deleveraging are macro,
securitization, credit and prime services
* Says changes should take place over 4 years
* Reiterates outperform, raisees PT to CHF30 vs CHF28
* 11 buys, 20 holds, 7 sells: Bloomberg data
* EARLIER: Credit Suisse sets sights on UBS in battle over
private banking
* NOTE: Stock up 6.2% YTD vs UBS up 20%, SX7P up 17%
* NOTE: Barclays says capital gap priced in at CS, not at BNP,
SocGen
* NOTE: RBC prefers Credit Suisse, Nordea most SocGen least
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Jeffrey Vögeli in Zurich.
To contact the reporter on this story:
Chris Malpass in Berlin at +49-30-70010-6234 or
cmalpass@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net