Speculation that incoming Credit Suisse AG [fortune-stock symbol=”CSGKF”] chief executive Tidjane Thiam could raise cash to boost the bank’s balance sheet overshadowed a forecast-beating increase in first-quarter net profit on Tuesday.
Tough new rules on risk and a surging Swiss franc weakened Credit Suisse’s cushion against future losses in the first quarter. With regulators still working on capital requirements for banks’ trading operations, there are potential headwinds to come.
“The risk is that the debate around the incoming CEO shifts from the potential for strategic change to the risk of capital raising,” said Omar Fall, an analyst at Jefferies.
Credit Suisse’s shares were the second-biggest faller in the European banking index, down 3% against the index’s 0.75% rise by mid-morning.
Thiam, chief executive of British insurer Prudential Plc, takes over from Credit Suisse veteran Brady Dougan at the end of June.
Until now the expectation has been that he will…