Credit Suisse posts first-quarter net loss of $2 billion
Thursday April 24, 4:28 am ET
Credit Suisse reports Q1 loss of $2 billion; cites reduction of subprime risk exposure
ZURICH, Switzerland (AP) -- Credit Suisse Group on Thursday posted a $2.1 billion net loss for the first quarter as the global effects of the U.S. subprime mortgage crisis continued to spread.
Switzerland's second-largest bank said it also had net writedowns of $5.3 billion for big buyout loans and mortgage securities.
ADVERTISEMENT
"Our first-quarter results are clearly unsatisfactory," Credit Suisse Chief Executive Brady Dougan said, but he said other operations of the bank did well.
Credit Suisse, which has suffered less than its crosstown rival UBS AG from bad investments in U.S. mortgage securities, said it has continued to reduce exposure to risk in the market and that other areas of its operations performed well.
Credit Suisse shares, which have slid 43 percent in the last 12 months, closed at 52.55 francs Wednesday, giving the bank a market capitalization of $61.1 billion.
"Other than the areas affected directly by the credit crisis, most of our businesses performed well, with revenues near, or in some cases above, those in the first quarter of 2007," said Dougan.
He said the bank "remains well positioned in an extremely challenging environment." |
