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Zurich (pte025/25.02.2003/11:51) - The Credit Suisse Group (CSG) has closed the fiscal year 2002 with record losses. Switzerland's second largest bank was forced to report a total loss of 2.25 billion euros (SF 3.3 billion), after earning a profit of 1.09 billion euros in the previous year.
The group announced today it would cut 1,250 jobs to compensate for the poor results.
The bank's losses have been attributed to the poor performance of Credit Suisse's investment bank subsidiary First Boston (CSFB) http://www.csfb.com and its struggling insurance firm Winterthur http://www.winterthur.com . According to analysts, the weak financial markets have also played a role.
CSG's greatest loss up to now was 1.66 billion euros in 1996. In the fourth quarter of 2002 alone the group recorded a pure loss of 648.8m euros.
The majority of the ensuing job cuts will affect the banking section of Credit Suisse Financial Services (CSFS), where 900 employees are to be released. The remaining cuts are to take place at Winterthur, which is to undergo broad restructuring.
Credit Suisse hopes these measures will help it reduce costs by 204.9m euros a year and return to profits in 2003.
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