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January 4, 2021

Credit Suisse completes 2020 share buyback programme

By Hannah Wright

Credit Suisse Group AG has announced the completion of its 2020 share buyback on 30 December 2020 for a total of CHF324,993,871 ($369m). Commencing on 6 January 2020, the firm repurchased 28,446,000 of its shares for an average price per share of CHF11.43.

The registered CSG shares were available for acquisition on a second trading line on the SIX Swiss Exchange, in order to repurchase the shares for the purpose of a capital reduction. Only CSG were able to purchase shares on the second trading line, via the bank mandated to execute the programme.

Sales of CSG shares on the second trading line were subject to Swiss federal withholding tax at a rate of 35 % on half of the difference between the repurchase price of the CSG shares and their nominal value. This was subsequently deducted from the repurchase price.

Ordinary trading in CSG shares remained unaffected by the second trading line. Any shareholder hoping to sell CSG shares was thus able to choose between the ordinary trading line or to CSG for subsequent capital reduction on the trading line.

Initially anticipating a share buyback total of CHF1bn, Credit Suisse suspended the programme in March 2020 due to COVID-19.

The bank shelved its buyback plans following calls from financial regulators to pause dividends and buyback programmes this year. Such efforts helped to preserve capital for use as a buffer from the pandemic-related shocks.

The repurchased shares were approved for cancellation by means of capital reduction at the firm’s AGM in 2020 and cancelled in July 2020. The remaining registered shares are expected to be cancelled at a future AGM of shareholders.

Based on the closing price of the CSG shares on SIX Swiss Exchange on 27 December 2019 of CHF 12.155, Credit Suisse were able to repurchase a maximum of 114m CSG shares. This figure represents up to 4.46% of the current share capital and voting rights of CSG.

As of 26 December 2019 CSG directly and indirectly held 124,632,322 CSG shares, corresponding to 4.88 % of the share capital and voting rights.

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