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Credit Suisse announces 1-1.5 billion share buyback

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Reuters ZURICH
Last Updated : Dec 12 2018 | 12:05 PM IST

ZURICH (Reuters) - Credit Suisse on Wednesday announced a share buyback of up to 1.5 billion Swiss francs ($1.51 billion) in 2019 and plans to increase its dividend by at least 5 percent from 2019 onward, confirming its strategy as it wraps up a three-year revamp under Chief Executive Tidjane Thiam.

"The actions taken during the restructuring mean the bank is now more resilient in the face of market turbulence," Thiam said in a statement ahead of the bank's investor day.

"As a result of known actions that are under our control, we expect to achieve at least a 10 percent return on tangible equity in 2019."

Switzerland's second-biggest bank last year announced new 2019 and 2020 yield targets and a plan to distribute half of net profit to shareholders primarily through share buybacks or special dividends, saying it had made strong progress in its ambitions to become a leading wealth manager with strong investment banking capabilities.

($1 = 0.9903 Swiss francs)

(Reporting by Brenna Hughes Neghaiwi; Editing by Maria Sheahan)

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First Published: Dec 12 2018 | 12:01 PM IST

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