Credit Suisse to Launch $6.3 Billion Capital Increase

ZURICH—Credit Suisse Group AG revealed details of a planned overhaul under its new chief executive on Wednesday including raising roughly 6 billion Swiss francs ($6.3 billion) in new capital, as the Swiss bank delivered a set of disappointing third-quarter results.

Incoming CEO Tidjane Thiam took over at Zurich-based Credit Suisse in July, and has been widely expected to implement changes at the lender including a downsizing of its relatively expensive, and relatively high-risk, investment bank unit. Credit Suisse said on Wednesday it plans to "significantly" reduce the use of capital at its investment bank.

Credit Suisse said it would raise fresh capital through both a rights offering and private placement.

Separately, Credit Suisse posted third-quarter results that included a pretax loss for its investment bank, and a 31% decline in pretax profit at its private banking and wealth management unit.

Mr. Thiam, the former CEO of U.K. insurer Prudential PLC, has no experience running a bank. Some analysts and experts have seen that as a potential positive, as he faces a series of difficult decisions about scaling back operations. Credit Suisse is one of a number of global lenders now in flux, as they respond to stricter capital rules, difficult market conditions, and disappointed shareholders.

Write to John Letzing at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

October 21, 2015 01:15 ET (05:15 GMT)

Copyright (c) 2015 Dow Jones & Company, Inc.