Credit Suisse Group reported a net loss of 2.1 billion Swiss francs for the first quarter of 2008, after net writedowns of CHF 5.3 billion ($5.32 billion) in leveraged finance and structured products.

The loss followed net income of CHF 2.7 billion in the first quarter of 2007. Net revenues on a core results basis were CHF 3 billion in the first quarter of 2008, down 72% from the first quarter of 2007.

“Our first-quarter results are clearly unsatisfactory,” declared Brady Dougan, chief executive officer of the firm. “However, during the quarter, we substantially reduced our exposures to affected areas and we will continue to do so in a disciplined fashion.”

“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. This demonstrates the benefit of our diversified global platform,” Dougan added. “Our global wealth management and Swiss corporate & retail banking businesses sustained their strong growth momentum, with steady inflows, and in investment banking we had solid results in most of our businesses other than leveraged finance and structured products.”

Private Banking, which comprises the Wealth Management and Corporate & Retail Banking businesses, reported income before taxes of CHF 1.3 billion in the first quarter of 2008, a decrease of 8% from the first quarter of 2007.

In Investment Banking, the loss before taxes was CHF 3.5 billion in the first quarter of 2008, compared with income of CHF 1.990 billion in the first quarter of 2007. Net revenues were negative CHF 489 million in the first quarter of 2008, compared with CHF 6.6 billion in the first quarter of 2007. This decline was due in large part to the impact of the mortgage and credit market dislocations on the fixed income businesses. Results in the first quarter of 2008 were also negatively impacted by significantly lower fixed income trading revenues compared with the first quarter of 2007, reflecting net writedowns in the leveraged finance and structured products businesses.

In Asset Management, the loss before taxes was CHF 468 million in the first quarter of 2008, compared with income of CHF 257 million in the first quarter of 2007. This decrease was due primarily to net writedowns of CHF 566 million from securities purchased from its money market funds and significantly lower private equity and other investment-related gains.

Looking ahead, Dougan concluded, “Credit Suisse remains well positioned in an extremely challenging environment: our capital position is strong and we will continue to manage our liquidity conservatively and control our expenses effectively. I am confident that we will continue to serve as a safe haven for clients in uncertain and volatile markets, and to seize the opportunities that arise in times of market dislocation to create long-term value.”