Credit Suisse intends to raise CHF4bn ($4.1bn) by selling shares to investors, including the Saudi National Bank, in a bid to fund its sweeping business restructuring.
The Swiss lender disclosed plans to spin off its capital markets and consulting business over the next three years under a revitalised CS First Boston name, as well as an agreement to sell its securitised products operation to US asset management giants Pimco and Apollo.
The company overhaul coincided with a significant quarterly loss for Credit Suisse's investment bank as well as a rampant exodus of its wealthy clients.
"This is a historic moment for Credit Suisse," said CEO Ulrich Körner.
"We are radically restructuring the investment bank to help create a new bank that is simpler, more stable and with a more focused business model built around client needs."
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According to the bank, the restructuring will cost around CHF2.9bn until 2024 and result in a net loss of CHF4.03bn, which includes a CHF3.7bn impairment of deferred tax assets related to the revamp.
Körner told Bloomberg that "the new Credit Suisse will definitely be profitable from 2024 onwards", adding that the bank does not "want to over promise and under deliver".
He said: "We want to do it the other way around."
The company announced that it will begin cutting 2,700 positions from its headcount in the fourth quarter and that it expects to reduce its personnel from 52,000 to roughly 43,000 by 2025. By then, the bank wants to cut the group's cost base by 15%.
The news comes after several turbulent few years for the Zurich-based bank, which has been embroidered in several scandals. Credit Suisse has seen its share price halve in the past year. Year-to-date, the company's share price is down 45.38%, according to data from Morningstar.
