GLOBAL - Sustained momentum in the private banking, retail, insurance, and asset management units of Swiss giant Credit Suisse Group, were not enough to stave off slumping performance in the firm's investment banking unit.
Credit Suisse First Boston dragged down overall 2001 results for the group. Both deteriorating capital markets and provisioning efforts against exposure to Enron and Argentina, as well as restructuring charges within CSFB, were cited as reasons behind the slump.
Based on preliminary results, the Swiss financial giant said that it expects to report a net operating profit of around CHF 4bn for 2001, (CHF 0.6bn for Q4, 2001). The group expects a net profit of around CHF 1.6bn for 2001, and a net loss of approximately CHF 0.8bn for the fourth quarter. CSFB expects to report a net operating profit of approximately US$338m (CHF 570m) for full year 2001, and a fourth quarter net operating loss of approximately US$196m (CHF328m); the division expects a net loss of around US$ 961m (CHF 1.6bn) for full year 2001 and a net loss of approximately US$1bn (CHF 1.7bn) for the fourth quarter.
Anticipated net operating profits for CSG’s other business units for 2001 include:
- Credit Suisse Financial Services at approximately CHF 1.4bn;- Credit Suisse Private Banking at around CHF 2.3bn, and;- Credit Suisse Asset Management at approximately CHF 0.3bn
The asset gathering businesses maintained strong performance in 2001 with net new assets for the group totalling approximately CHF66.5bn, of which Credit Suisse Private Banking contributed almost CHF 33.1bn.
Ratings agency Standard & Poor's today said that the announcement by CSG will not affect the ratings on the group.
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