Swiss banking group Credit Suisse has secured the go-ahead from its board to buy back up to CHF1.5bn of its shares next year. A Credit Suisse buyback is also planned for 2020, subject to board approval.
Besides, it intends to distribute around half of its net income to shareholders for the coming two years.
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Plans are also on to raise the ordinary dividend by at least 5% annually from next year.
The announcement comes as the bank nears the completion of a three-year restructuring under CEO Tidjane Thiam.
“The actions taken during the restructuring mean the bank is now more resilient in the face of market turbulence. Those actions included dealing with legacy issues, reallocating capital towards our more stable, capital efficient and profitable wealth management businesses, and away from our more volatile markets activities,” Thiam said.
Meanwhile, Credit Suisse expects pre-tax income of CHF3.2-3.4bn this year, which is a significant increase from last year.
The bank also expects its adjusted operating cost base to be CHF16.9bn, which is CHF100m below its target.
However, it warned that revenue from its Asia-Pacific markets unit may be down by 8-10% compared to the previous year.
“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,” Thiam noted.
