Credit Suisse will raise around $4 billion from its shareholders to try to close the gap in financial strength with rivals. David Pollard reports on their results and some of their rivals.
It's been a while - but are Europe's banks finally moving forward? From Credit Suisse: its highest quarterly profit since a sweeping restructuring. And - to bolster its capital base - a four billion dollar share offer. It comes as bank shares fall back into favour. (SOUNDBITE) (English) CMC MARKETS ANALYST, MICHAEL HEWSON, SAYING: "The banks have been under an awful lot of pressure over the last 12 months. We've already seen capital raisings this year from Deutsche Bank and Unicredit. And I think it's a much more risk-on environment for the banking sector. We've seen some significant gains in banks since the beginning of the year." Santander shares rebounding 40 per cent over the last 12 months. They got another boost today on a 1.9 billion euro quarterly profit - thanks in large part to strong demand in Brazil. While Standard Chartered saw its shares rise four per cent on profits almost doubling to one billion euros. (SOUNDBITE) (English) CMC MARKETS ANALYST, MICHAEL HEWSON, SAYING: "The markets seem to like what they see. Ultimately, I think banks need to shore up their capital base because of a significant, much stricter regulatory environment which is due to come in over the course of the next two years." But despite the challenges, the sector as a whole could still be cheap. Especially if Emmanuel Macron wins the French presidency. (SOUNDBITE) CITY INDEX, SENIOR MARKETS ANALYST, KATHLEEN BROOKS, SAYING: "Whenever there is excess trading activity or chances of volatility then we are tending to see bank shares start to rise. I think the other reason is that he (Macron) is considered market friendly and the banks are the clear way to express that." And Credit Suisse shares also rose. Though together with an investigation over alleged tax evasion and money laundering, it's also in the middle of a shareholder storm - over executive pay and bonuses. Some banks still, it seems, fighting to deal with an image problem.