Credit Suisse to Launch Up to $1.5 Billion Share Buyback in 2020, Returns to Rise
December 11 2019 - 2:19AM
Dow Jones News
By Pietro Lombardi
Credit Suisse Group AG (CSGN.EB) will launch a buyback of up to
1.5 billion Swiss francs ($1.52 billion) next year, when it expects
to deliver growing profitability and dividends.
The Swiss bank targets a return on tangible equity, a key
measure of profitability, of roughly 10% next year, up from the
more than 8% it expects to achieve this year. Should markets
support revenue growth, the bank's RoTE may reach roughly 11%, the
Swiss bank said Wednesday ahead of its investor day. In the medium
term, RoTE is expected to rise above 12%.
The bank said it would distribute at least 50% of its 2020 net
income to shareholders, via a mix of dividends and buyback. A share
buyback of up to CHF1.5 billion for 2020 has been approved,
depending on market conditions, with at least CHF1 billion expected
to take place.
Dividends are expected to grow by at least 5% per year.
The bank also gave an update on its performance for the last
quarter of the year, which it said has improved compared with the
same period last year.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
December 11, 2019 02:04 ET (07:04 GMT)
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