Print

Mail

wiki links

Credit Suisse Group reports writedown

Credit Suisse Group on Tuesday reported a 2.07 billion Swiss franc (US$1.88 billion) writedown for subprime-related assets, but still posted a fourth-quarter net profit of SF1.33 billion.

The bank, Switzerland's second-largest, said its net subprime exposure is SF1.6 billion, down sharply from SF3.9 billion at the end of September, showing the bank continues to weather the subprime crisis better than some, such as its crosstown rival UBS AG.

Nonetheless, Credit Suisse said net profit in the three months ending Dec. 31 was 72 percent below the SF4.67 billion recorded in the year-earlier period, when earnings were bolstered by investment banking and the sale of insurer Winterthur.

But rival UBS AG, the largest Swiss bank, has been hit much harder. It is expected to report a quarterly and yearly loss today.

Credit Suisse said in the US that it has received subpoenas and requests for information about subprime mortgages from regulators.

The company said it also faces a class-action lawsuit related to its role in underwriting mortgage pass-through certificates for a Countrywide Financial Corp unit.

A filing on Tuesday with the Securities and Exchange Commission said Credit Suisse is cooperating with the subpoenas and requests for information. Regulators requested information regarding Credit Suisse's "origination, purchase, securitization and servicing of subprime and non-subprime residential mortgages and related issues," according to the filing.

Goldman Sachs Group Inc, Bear Stearns Cos and Morgan Stanley previously have received requests for information related to subprime mortgages.

Credit Suisse said market turmoil still poses stiff challenges, but that it was confident of achieving a "superior performance" over various market cycles.

Analysts praised Credit Suisse for its thorough disclosure compared with rivals, but analyst Derek De Vries of Merrill Lynch said its large exposure may translate to further markdowns.
This story has been viewed 1274 times.