The investment banking unit dragged Credit Suisse to a fourth consecutive quarterly loss. It intends to raise around 4 billion Swiss francs in capital and radically restructure the investment bank. 

Credit Suisse said on Thursday it intends to raise capital with gross proceeds of around 4 billion Swiss francs ($4.1 billion), subject to approval at a forthcoming Extraordinary General Meeting on November 23, according to a statement. Saudi National Bank has already committed to invest up to 1.5 billion francs to achieve a shareholding of up to 9.9 percent.

Additionally, Credit Suisse expects to incur restructuring charges, software, and real estate impairments of around 250 million francs in the fourth quarter as part of the cost of its strategic transformation. Together with the adverse revenue impact from the exit from its non-core businesses and exposures, it expects a group net loss in the fourth quarter.

Although Credit Suisse reported a fourth consecutive quarterly loss, the pre-tax third-quarter loss of 342 million Swiss francs was less than expected. The investment bank lost 640 million in the quarter. The loss attributable to shareholders was 4.03 billion francs in the third quarter which follows a loss of 1.6 billion in the second quarter. 

Wealth Management

Credit Suisse's wealth arm saw a net outflow of assets for the third quarter of 12.9 billion after a 7.7 billion outflow the previous quarter. Overall assets under management fell to 1.401 trillion from 1.454 trillion in the second quarter.

The bank said it intends to allocate nearly 80 percent of capital to wealth management, the Swiss Bank, and asset management and markets by 2025. 

Radical Restructuring

Accompanying the results was Credit Suisse's strategy update which included a «radical restructuring» of its investment bank with the revival of the First Boston brand under a separate firm. The bank also formed a new unit capital release unit (CRU) to house non-core businesses and the securitized products group (SPG), of which a significant portion will be offloaded to an investor group led by Apollo Global Management. 

«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,» said Credit Suisse chief executive Ulrich Koerner.

«The new Executive Board is focused on restoring trust through the relentless and accountable delivery of our new strategy.»