Suisse Group AG fell after a Swiss newspaper reported that Chief Executive Officer Tidjane Thiam may raise capital as he overhauls the business.
Thiam will present a strategy in October that includes plans to sell the U.S. private bank and scale back the lender’s prime brokerage and fixed-income businesses, Schweiz am Sonntag reported on Sunday. Those measures may be accompanied by a capital increase, the newspaper said, without identifying its sources. A spokesman at Credit Suisse in Zurich declined to comment.
The stock fell as much as 1.3 percent Monday and was trading 1.1 percent lower at 25.70 Swiss francs at 1:11 p.m. in Zurich. The shares have gained 5.4 percent this year.
Thiam, who joined in July from Prudential Plc, told staff in a memo on his first day on the job that he would be “ruthlessly selective” about where the bank allocates its resources. The prime brokerage business, which is part of the investment bank, provides services for clients such as hedge funds.
The U.S. wealth management business is worth between 400 million Swiss francs ($412 million) and 600 million francs, Morgan Stanley analysts led by Huw van Steenis said in a note Monday, reiterating their overweight rating on the Zurich-based bank. They estimate the unit has $115 billion in assets under management and about 370 advisors.