Reuters reported last month that Credit Suisse was considering a share sale rather than an initial public offering (IPO) of its Swiss banking division and was set to make a decision in April. Scrapping the IPO means Credit Suisse will not have to sacrifice some of the profits from one of its most lucrative divisions and will avoid the operational complexities of having a separate listed entity within a global bank. "I'm glad they're not selling the Swiss bank as that would have weakened the overall business and raising equity is simpler and cleaner," said David Hussey, fund manager at top 60 Credit Suisse investor Manulife Asset Management. Credit Suisse has lost 5.65 billion francs since 2015 as Thiam focuses on expanding its wealth management business while shrinking its investment bank, a shift the Swiss bank expects will lead to more than 10,000 job losses. The bank's management is also fighting an investor protest over high executive pay that is set to come to a head at its annual meeting on Friday while the Netherlands is leading an investigation into alleged tax evasion and money laundering involving the bank. Still, clarity on its plans for raising capital, as well as better than expected first-quarter numbers, pushed shares in Credit Suisse up as much as 3.7 percent to their highest since March 3. The shares were trading 1.9 percent higher at 1135 GMT. "This set of numbers and, much more importantly, the removal of capital uncertainty make the shares ready for a relief rally," wrote Kepler Cheuvreux analyst Peter Casanova, who rates Credit Suisse's stock "buy". The bank reported net profit of 596 million francs for the first three months of 2017, its highest quarterly profit since Thiam launched his sweeping restructuring and ahead of even the highest estimate in a Reuters poll of analysts. "Wealth management as well as investment banking trends give us reason to be optimistic," said Andreas Brun, banking analyst at Mirabaud Securities LLP.
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