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Credit Suisse announces 1-1.5 billion Swiss franc share buyback

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By Reuters
Credit Suisse announces 1-1.5 billion Swiss franc share buyback
FILE PHOTO: A logo of Credit Suisse is pictured on a building in Geneva, Switzerland, November 8, 2017. REUTERS/Denis Balibouse/File Photo   -   Copyright  Denis Balibouse(Reuters)

ZURICH (Reuters) – Credit Suisse <CSGN.S> on Wednesday announced a share buyback of up to 1.5 billion Swiss francs (1.2 billion pounds) in 2019 and plans to increase its dividend by at least 5 percent from 2019 onward, confirming its strategy as it wraps up a three-year revamp under Chief Executive Tidjane Thiam.

“The actions taken during the restructuring mean the bank is now more resilient in the face of market turbulence,” Thiam said in a statement ahead of the bank’s investor day.

“As a result of known actions that are under our control, we expect to achieve at least a 10 percent return on tangible equity in 2019.”

Switzerland’s second-biggest bank last year announced new 2019 and 2020 yield targets and a plan to distribute half of net profit to shareholders primarily through share buybacks or special dividends, saying it had made strong progress in its ambitions to become a leading wealth manager with strong investment banking capabilities.

(Reporting by Brenna Hughes Neghaiwi; Editing by Maria Sheahan)