Credit Suisse to restart buybacks next year

Reuters I New York

The Daily Tribune - www.newsofbahrain.com

Credit Suisse Group AG will restart buying back its own shares next year and plans to pay a higher dividend for this year.

The Swiss bank said Thursday that it will launch a 1.5 billion-Swiss franc ($1.65 billion) buyback next year, and at least two-thirds of it is expected to be completed within the year.

It also said that it has continued to accrue money to pay a dividend for this year 5% higher than the one for 2019. The board has recommended shareholders to approve in November the second part of the dividend for last year.

The move comes as net profit for the period fell 38% on year to CHF546 million. The results were hit by CHF107 million in restructuring expenses and CHF152 million in litigation provisions, while a weak U.S. dollar also weighed on the results.

Revenue fell 2% to CHF5.20 billion.

The results compare with expectations of a net profit of CHF562 million on revenue of CHF5.29 billion, according to a consensus forecast provided by the bank.

In the third quarter, the bank set aside CHF94 million in provisions against potential losses from borrowers. This is slightly higher than last year's level but well below the money, it stowed away in the second quarter. Analysts had forecast provisions of CHF233 million.