ZURICH, Switzerland, Feb. 25, 2003 (PRIMEZONE) --
Reports Progress in Implementation of Key Measures to
Restore Profitability in 2003
Credit Suisse Group (NYSE:CSR) today announced a net loss of CHF 950 million for the fourth quarter and a net loss of CHF 3.3 billion for the full-year 2002, in line with the Group's preliminary outlook announced on January 21, 2003. Fourth quarter 2002 results were influenced by the continuing financial market weakness, a number of exceptional items and a change in accounting principles to allow for the recognition of deferred tax assets. Winterthur's results recovered in the fourth quarter 2002. Private Banking reported CHF 18.7 billion in net new assets for the full-year 2002. Credit Suisse First Boston continued to achieve significant cost reductions, while maintaining strong market positions in its key businesses. Credit Suisse Group is entering 2003 with a stronger balance sheet and an improved capital base. The Group's Board of Directors will propose a dividend of CHF 0.10 per share to the Annual General Meeting on April 25, 2003.
Oswald J. Grubel, Co-CEO of Credit Suisse Group and Chief Executive Officer of Credit Suisse Financial Services, stated: "We have made significant progress in implementing key measures announced in the third quarter to restore the Group's core earnings strength. At Credit Suisse Financial Services, we continued to realign the European initiative to focus on private banking clients, thus generating considerable savings in terms of infrastructure, IT and personnel expenses. At Winterthur, results recovered due to a satisfactory operating performance and the positive impact of a change in accounting principles, and we are actively pursuing initiatives to reduce costs and withdraw from markets and businesses with unsatisfactory results in order to position us for a return to profitability in 2003."
John J. Mack, Co-CEO of Credit Suisse Group and Chief Executive Officer of Credit Suisse First Boston, said: "At Credit Suisse First Boston, we continued progress on cost reduction efforts in the fourth quarter, achieving a 14% decrease in operating expenses compared to the previous quarter and, at the same time, improved our global market rankings for 2002 in key businesses. In the fourth quarter, we also initiated a further cost reduction program to reduce annual operating expenses by an additional USD 500 million and accelerated the disposal of legacy asset portfolios that were hindering our financial performance and flexibility. In addition, we made substantial progress in resolving key regulatory issues facing Credit Suisse First Boston. As we move forward in 2003, we remain intensively focused on returning to profitability."
Fourth Quarter 2002 Group Results
Credit Suisse Group's results for the fourth quarter of 2002 were influenced by the continuing financial market weakness, a number of exceptional items and a change in accounting principles to allow for the recognition of deferred tax assets. For the quarter, the Group reported a net loss of CHF 950 million, compared with a net loss of CHF 2.1 billion in the third quarter 2002 and a net loss of CHF 830 million in the fourth quarter of 2001. The Group's operating income stood at CHF 6.4 billion in the fourth quarter 2002, up 13% on the previous quarter but down 22% on the fourth quarter of 2001. Including restructuring charges presented as exceptional items at the business units, the Group's operating expenses decreased 5% versus the third quarter to CHF 5.1 billion, and were down 26% on the fourth quarter 2001.
Full-year 2002 Group Results
For the full-year 2002, the Group reported a net loss of CHF 3.3 billion, compared with a net profit of CHF 1.6 billion for the previous year. The Group's operating income stood at CHF 28.0 billion for 2002, down 28% on the previous year. The Group's full-year operating expenses declined 22% versus 2001 to CHF 23.5 billion, primarily as a result of job reductions, a significant decrease in bonuses and the sale of non-core businesses. Earnings per share for 2002 amounted to a loss of CHF 2.78 versus a profit of CHF 1.33 for 2001, and the Group's return on equity was -10.0%, versus 4.1% in 2001.
The full report including tables can be downloaded from the following link: http://reports.huginonline.com/893080/114024.pdf