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