Credit Suisse shareholders approve 4 billion Swiss franc capital raise

Logo of Swiss bank Credit Suisse is seen in Bern

(Corrects date in dateline to Nov 23)

ZURICH (Reuters) – Credit Suisse shareholders approved on Wednesday a 4 billion Swiss franc ($4.20 billion) share capital hike intended to fund the embattled Swiss bank’s turnaround.

Some 92% and 98% of shareholders at an extraordinary general meeting supported the two share capital increases which were first proposed last month under the scandal prone bank’s restructuring plan.

“Today’s vote by shareholders marks a further important step in our journey to build the new Credit Suisse” chairman Axel Lehmann said after Wednesday’s result.

“This vote confirms confidence in the strategy, as we presented it in October, and we are fully focused on delivering our strategic priorities to lay the foundation for future profitable growth,” he added

The approval comes after Credit Suisse on Wednesday also announced it expects to make a pre tax loss of up to 1.5 billion Swiss francs ($1.58 billion) during its fourth quarter, saying the “challenging” economic and market environment had had an adverse effect on client activity across its business

To fund an overhaul which will see the Swiss bank cut thousands of jobs and scale back its investment bank, Credit Suisse had drawn up a plan that would give new and existing shareholders the chance to buy new shares.

($1 = 0.9520 Swiss francs)

(Reporting by Noele Illien; editing by John Revill)