Credit Suisse Asset Management reported today a net operating profit for the third quarter of CHF 34 million ($20.6 million), down 58% from the previous quarter.
The drop was due to a reduction in assets as well as the reversal of a tax benefit realized in the first half of the year, the company said. During the first three quarters of 2001, assets under management for CSAM have fallen to CHF 434.4 million ($263.4 million), down 10.8%.
Overall, Credit Suisse Group reported an incredible drop in net operating profit of CHF 21 million ($12.7 million) in the third quarter, compared to CHF 1.6 billion ($970 million) in the previous quarter and CHF 1.7 billion ($1.03 billion) in the third quarter of 2000.
"Credit Suisse Group faced major challenges in the third quarter, as did our entire industry," said Lukas Muhlemann, CEO of Credit Suisse. "As we expected, our results reflect the demanding market conditions. We have implemented comprehensive programs to adapt our business to the current environment, including significant cost reductions across all business units."
By implementing the extensive cost cutting plan, the firm expects to reduce operating costs by $1 billion by the end of 2002, according to the company.
The firm does not anticipate any sort of rebound in the fourth quarter, according to Muhlemann.
"Credit Suisse Group remains cautious in its outlook for the current quarter," he said. "Transaction volumes are expected to stay at relatively low levels, and markets will continue to be challenging. Operating results for Credit Suisse First Boston are not expected to improve compared with the third quarter results."