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Credit Suisse says it will buy back up to 8 billion Swiss francs in shares

Credit Suisse says it will buy back up to 8 billion Swiss francs in shares

ZURICH, Switzerland (AP) _ Credit Suisse Group said Monday it will buy back up to 8 billion Swiss francs (US$6.4 billion; euro4.9 billion) in shares over three years.
The bank, Switzerland's second largest, said it will spend the proceeds of a recent unit sale on the share buyback as well as on a dividend hike and business expansion.
The share buyback will replace a 6 billion franc (US$4.8 billion; euro3.7 billion) program, which Credit Suisse said will be completed in the second quarter.
Credit Suisse also will raise its dividend to 2.24 francs (US$1.79; euro1.38) and propose a par value reduction of 0.46 francs (US$0.37; euro0.29) a share. A reduction in par value has certain tax advantages for Swiss taxpayers.
The company said it also will continue to invest in what is sees as high-growth regions, primarily through organic growth but also through smaller deals and partnerships.
"We are pleased that we have the requisite resources to grow our business, while, at the same time, returning capital to our shareholders," Chief Executive Oswald Gruebel said in a statement, referring to the proceeds from the disposal of insurer Winterthur Group to AXA SA last year.
AXA acquired Winterthur from Credit Suisse for 12.3 billion Swiss francs in June.
Credit Suisse shares rose 1.5 percent to 87.35 francs (US$69.98; euro54.01) on the Zurich exchange.


Updated : 2021-10-17 03:27 GMT+08:00