ZURICH, Switzerland, April 25, 2003 (PRIMEZONE) -- Credit Suisse Group (NYSE:CSR) (Other OTC:CSGKF) today announced that it expects to report a net profit of approximately CHF 650 million for the first quarter of 2003, with a return to profitability by Credit Suisse First Boston and improved profitability at Winterthur. Credit Suisse Group announced these preliminary first quarter results in connection with today's Annual General Meeting. Detailed first quarter results will be announced on May 6, 2003. Credit Suisse First Boston expects a net profit of approximately USD 160 million (CHF 220 million) and a net operating profit, excluding the amortization of acquired intangible assets and goodwill, of approximately USD 290 million (CHF 400 million) for the first quarter of 2003. Its Institutional Securities segment significantly improved its performance quarter-on-quarter, benefiting particularly from strong results in Fixed Income and lower credit provisions. Credit Suisse Financial Services expects a net profit of approximately CHF 660 million and a net operating profit, excluding the amortization of acquired intangible assets and goodwill, of approximately CHF 690 million for the first quarter. Both Private Banking and Corporate & Retail Banking increased their segment profits quarter-on-quarter. Net new assets in Private Banking increased versus the prior quarter. Insurance and Life & Pensions, which both returned to profitability in the fourth quarter of 2002, improved their operational performance, due mainly to higher investment income and tariff increases. The Group's first quarter 2003 performance was negatively impacted by further writedowns on its investments in Swiss International Airlines and Swiss Life, held at the Corporate Center.
Oswald J. Grubel, Co-CEO of Credit Suisse Group and CEO of Credit Suisse Financial Services, said: "Our efforts to reposition Credit Suisse Financial Services since last summer, especially at Winterthur, are beginning to bear fruit. Given the progress in both business units, we are optimistic about the further development of our company." John J. Mack, Co-CEO of Credit Suisse Group and CEO of Credit Suisse First Boston, said: "We are very pleased that Credit Suisse First Boston has returned to profitability in the first quarter. In this challenging market environment, our whole management team remains intensely focused on the Group's bottom-line performance."
Update of Winterthur's Consolidated EU Solvency Ratio
On the basis of the final local statutory accounts of Winterthur's operating entities for 2002, which were completed in April 2003, Credit Suisse Group has updated Winterthur's consolidated EU solvency ratio effective December 31, 2002, to 142%. Local solvency ratios of Winterthur's operating entities worldwide continued to exceed regulatory requirements: for the ten largest entities, the average local coverage was above 200%, and the lowest ratio was 135% at year-end. The consolidated EU solvency ratio is a supplementary financial disclosure for Winterthur and has no impact on published financial statements and note disclosures, regulatory insurance filings, or the Group's internal Economic Risk Capital models. This update does not change the Group's view regarding the capitalization of Winterthur.
Realignment of Client Segmentation within Credit Suisse Financial Services
As previously announced, a new service model for private clients in Switzerland was introduced within the banking segments of Credit Suisse Financial Services as of January 1, 2003. As a general rule, investable assets of CHF 250,000 or mortgages of CHF 1 million now mark the boundary between the client segments handled by Corporate & Retail Banking and Private Banking, respectively. This change will be reflected in the financial reporting of the Private Banking and Corporate & Retail Banking segments as of the first quarter of 2003. To ensure comparability, the respective historic financial information according to the new format is provided in the attachment.
Enquiries
Credit Suisse Group, Media Relations Telephone +41 1 333 8844 Credit Suisse Group, Investor Relations Telephone +41 1 333 4570 Internet www.credit-suisse.com
The full press release including tables can be downloaded from the following link:
http://reports.huginonline.com/900443/116377.pdf
Credit Suisse Group
Credit Suisse Group is a leading global financial services company headquartered in Zurich. The business unit Credit Suisse Financial Services provides private clients and small and medium-sized companies with private banking and financial advisory services, banking products, and pension and insurance solutions from Winterthur. The business unit Credit Suisse First Boston, an investment bank, serves global institutional, corporate, government and individual clients in its role as a financial intermediary. Credit Suisse Group's registered shares (CSGN) are listed in Switzerland and Frankfurt, and in the form of American Depositary Shares (CSR) in New York. The Group employs around 78,000 staff worldwide. As of December 31, 2002, it reported assets under management of CHF 1,195.3 billion.
Cautionary statement regarding forward-looking information
This press release contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements. Words such as "believes," "anticipates," "expects," "intends" and "plans" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing. We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.
Cautionary statement regarding non-GAAP financial information
This press release may contain non-GAAP financial information. Additional financial information, including a reconciliation of certain non-GAAP financial information to the most directly comparable measures under generally accepted accounting principles, is posted on our website at www.credit-suisse.com/en/csgn/sec_filings.html.