Credit Suisse Group Strengthens Winterthur's Capital Base and Comments on Expected Third Quarter Results


ZURICH, Switzerland, Oct. 2, 2002 (PRIMEZONE) -- Credit Suisse Group (NYSE:CSR) (Other OTC:CSGKF) today announced that it has further strengthened the capital base of its insurance units with CHF 2.0 billion, as part of its capital plan for Winterthur communicated in the second quarter earnings release on August 14, 2002. This capital contribution will reinforce Winterthur's solvency capital to support the growth of its businesses in this challenging environment. The Group also announced that in the third quarter of 2002, its results will be impacted by a significant net loss in the insurance business, as well as by a modest overall negative effect from the Group's other businesses.

In its second quarter earnings release of August 14, 2002, Credit Suisse Group announced that it plans to implement further measures to strengthen the capital base of its insurance units in the second half of the year. As part of this capital plan, Credit Suisse Group has now increased the equity capital of Winterthur Insurance by CHF 0.6 billion and completed a direct capital injection of CHF 1.4 billion into Winterthur Life. These transactions were financed with excess liquidity from the Credit Suisse Group parent company and therefore do not impact banking capital ratios.

Winterthur has substantially reduced the equity exposure of its investment portfolio to mitigate the impact of international equity market volatility on its solvency capital as far as possible. However, related hedging costs and further realized losses again impacted Winterthur's capital base in the third quarter of 2002. In addition, Winterthur's solvency capital was reduced by growth in premium volumes, particularly from rate increases. With the CHF 2.0 billion capital injection, Winterthur's capital base has now been reinforced. Further measures to improve Winterthur's solvency capital are planned in line with market developments. Credit Suisse Group remains adequately capitalized.

Oswald J. Grubel, Chief Executive Officer of Credit Suisse Financial Services and Co-CEO of Credit Suisse Group as of January 1, 2003, said: "By reinforcing the solvency capital of our insurance units, we will enable Winterthur to take advantage of opportunities to grow and to improve its operating results through the realignment of its investment strategy, continued repricing and selective underwriting in light of new market conditions, as well as the accelerated realization of cost reductions."

Third Quarter Results Outlook

In the third quarter of 2002, Credit Suisse Group's consolidated results will be impacted by a significant net loss in the insurance business due to further realized losses and the income statement recognition of lower equity valuations, as well as by a modest overall negative effect from the Group's other businesses.

Credit Suisse First Boston will report an operating loss in the third quarter, mainly as a result of lower revenues and further provisioning, reflecting the current environment. Private Banking will report a net profit below the result achieved in the second quarter, due mainly to market conditions and a one-time restructuring charge in its European Financial Services Initiative. Swiss Corporate and Retail Banking will continue to post good results. Detailed third quarter results will be announced on November 14, 2002.

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, Frankfurt and Tokyo, and in the form of American Depositary Shares (CSR) in New York. The Group employs around 80,000 staff worldwide. As of June 30, 2002, it reported assets under management of CHF 1,293.2 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 forwardlooking 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 forwardlooking 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; and (xviii) 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 Form 20F and reports on Form 6K filed with the U.S. Securities and Exchange Commission.



            

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