Credit Suisse plans US$1.02bil share buy-backs by year-end

The Star Malaysia - StarBiz - - Foreign News -

ROME: Credit Suisse Group AG ex­pects to buy back shares worth at least one bil­lion Swiss francs (US$1.02bil) by the end of this year as chief ex­ec­u­tive of­fi­cer Tid­jane Thiam (pic) re­wards in­vestors for stick­ing with him through a three-year re­vamp.

The bank’s board has au­tho­rized pur­chases of as much as 1.5 bil­lion francs this year “sub­ject to mar­ket and eco­nomic con­di­tions,” Credit Suisse said in a state­ment. The pro­gram will be­gin on Jan 14.

Credit Suisse in De­cem­ber an­nounced a plan to re­pur­chase stock of as much as three bil­lion francs over this year and the next.

How­ever, the buy­back plan and an in­crease to the div­i­dend were seen as slightly dis­ap­point­ing and un­am­bi­tious by many in­vestors, and the shares stayed flat fol­low­ing the De­cem­ber an­nounce­ment.

The lender’s shares fell 38% in Zurich trad­ing last year, com­pared with a de­cline of 28% on the Bloomberg Europe 500 Banks and Fi­nan­cial Ser­vices In­dex.

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