TEXT-Credit Suisse statement on capital hike, Q3

Oct 16 (Reuters) - Credit Suisse (CSGN.VX) said on Thursday it had increased its Tier 1 capital by about 10 billion francs from several major investors, including a subsidiary of the Qatar Investment Authority. [ID:nLG360081]

The Swiss bank also said it expected to post a third-quarter net loss of 1.3 billion Swiss francs ($1.15 billion) .

Here is an edited version of its statement.

SUMMARY

Credit Suisse has raised the capital through the sale of approximately 93 million Credit Suisse Group treasury shares for proceeds of approximately 3.2 billion Swiss francs of common equity.

It has also issued mandatory convertible bonds convertible into around 50 million new shares of common equity for proceeds of around 1.7 billion francs

The bank issued non-dilutive hybrid tier 1 capital for net proceeds of approximately 5.5 billion francs.

This takes the tier 1 ratio as of the end of September, on a pro-forma basis, to approximately 13.7 percent. As of the end of the third quarter, the tier 1 ratio was approximately 10.4 percent.

Credit Suisse now already exceeds the Swiss Federal Banking Commission's 2013 capital targets and minimum leverage requirements.

RESULTS

Credit Suisse also expects to post a third-quarter net loss of around 1.3 billion francs.

The group also expects a pre-tax loss of around 3.2 billion francs in investment banking, reflecting writedowns of approximately 2.4 billion francs in the leveraged finance and structured products businesses and "exceptionally adverse trading conditions in September".

But it expects strong operating results for the third quarter in private banking with strong net new asset inflows in both wealth management and in the Swiss corporate & retail banking business.

The bank had an inflow in private banking of net new assets amounting to approximately 14 billion francs, of which 11 billion francs was in wealth management and 3 billion francs in the Swiss corporate & retail banking business.