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CSAM hit by €2bn loss of two large accounts

SWITZERLAND – Credit Swiss Asset Management lost CHF3.2bn (€2bn) in assets under management in the fourth quarter – due to the loss of two large accounts.

It said the outflows at CSAM – “primarily due to the loss of two large accounts” - were partly offset by a total inflow of CHF3.0bn into the private client services and alternatives arms of Wealth & Asset Management.

Parent Credit Suisse did not disclose the names of the accounts lost and a spokesman was not immediately able to comment.

Assets under management at CSAM were CHF386.7bn at the end of 2004 – up one percent from the end of 2003.

Wealth & Asset Management – comprising CSAM, private clients and alternatives - posted a net income of CHF63m in the fourth quarter, compared to CHF26m a year before. Net revenues at the division rose eight percent to CHF1.0bn.

CSAM’s fourth-quarter revenues were up two percent at CHF473m.

Credit Suisse’s Life & Pensions arm posted fourth quarter net income of CHF152m, a fall of CHF12m from the third quarter.

Overall, the Credit Suisse Group reported net income in the fourth quarter of CHF1.0bn, up from CHF784m a year before.

"We delivered a good 2004 result as our businesses responded well to the changing market environment but the fourth quarter was impacted by provisions relating to the sale of Winterthur International, a loss on the disposal of a minority holding and severance costs at CSFB,” said Oswald Grübel, chief executive of Credit Suisse Group.

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