GLOBAL - Credit Suisse Group saw operating profits take a 45% stoop in 2001, stressing that revenues looked likely to slide during 2002 and job losses set to rise.
The figures did not provide any major shocks for the City, being broadly in line with preliminary projections released in January.
But the Group still conceded a net operating profit of CHF4bn; net profit fared worse down 73% at CHF1.6bn, versus CHF5.8bn in 2000. The firm warned that in 2002 revenues for units Credit Suisse Financial Services and Credit Suisse First Boston were unlikely to exceed those of 2001.
Operating income increased 5% to stand at CHF39.2bn in 2001, attributed to increased business volume resulting from the acquisition of DLJ.
Lukas Mühlemann, chairman and chief executive officer of Credit Suisse Group, described a “challenging” year for the Group, but insisted that the firm would maintain strong positions in its core businesses. He also cautioned that CSG would move “aggressively to bring down costs in all our operations.”
One highlight in the mire was the Group's asset gathering businesses, registering new assets of CHF66.4bn. Credit Suisse Asset Management contributed CHF9.2bn, but recorded a 5% decline in net operating profit to CHF322m. Discretionary assets under management stood at CHF364.2bn and total assets under management increased by 4.4% to CHF508.8bn.
But a question still hangs over investment banking arm CSFB, which posted a net operating profit of CHF571m in 2001, a decrease of 78% compared with 2000. For full year 2001, the unit - which is also embroiled in clearing its name over the Enron scandal - reported a net loss of CHF1.6bn bn versus a net profit of CHF2.4bn in the previous year. CSFB’s revenues are also expected to be lower than in 2001.
Credit Suisse Financial Services posted a total net operating profit at CHF1.4bn, down 24% versus 2000. Total assets under management increased slightly to CHF274.2bn in 2001. Winterthur Insurance recorded a 12% increase in its gross premium volume but net operating profit was down 28% to CHF536m versus the previous year. Winterthur Life & Pensions' gross premiums amounted to CHF17.4bn in 2001, up 13%. But net operating profit was again down for 2001 at 5% to CHF 578m. Net new assets for 2001 totalled CHF3.9bn, versus CHF2.7bn in 2000.
CSG streamlined its structure into two business units at the beginning of the year – Credit Suisse Financial Services and Credit Suisse First Boston. The reporting structure of Credit Suisse Financial Services comprises the areas private banking, corporate and retail banking, life and pensions and insurance. Credit Suisse First Boston now also includes the Group's asset management business, which will continue to be reported separately.
The current figures are based on Credit Suisse’s old structure.
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