Credit Suisse will raise around four billion Swiss francs ($4 billion) from its shareholders, the embattled bank said, trying to close the gap in financial strength with rivals.

The bank said the decision, which saw management ditch an alternative plan to publicly list part of its Swiss business, should remove any concerns over the group’s capital strength.

“This was an option which – we got very clear views from our shareholders – was seen as the best option,” the bank’s finance chief David Mathers told journalists, as it unveiled a rebound in quarterly profit but struck a cautious tone about the future.

The move follows capital raising by German rival Deutsche Bank earlier this year, and should benefit from a rally in bank stocks after French centrist Emmanuel Macron took a step towards leading his country.

But while the decision may resolve one of the uncertainties over the bank, which made billions of francs of losses last year, others remain.

The bank’s management is fighting investor protest over high executive pay and the Netherlands is leading an investigation of alleged tax evasion and money laundering involving the group.

Credit Suisse’s announcement that it would raise fresh capital through a rights issue prompted a mixed response from analysts.

“How can a bank as big as CS be so volatile in terms of its earnings and unpredictable as to how much capital it needs? They are being forced to adjust quarter by quarter,” said Chirantan Barua, an analyst with Bernstein. (Reuters)