Credit Suisse Group reported record income from continuing operations of 8.5 billion Swiss francs ($7.72 billion) for 2007, up 3% from the prior year.

Net revenues also increased 3%. However, net income of CHF 8.5 billion, was down from CHF 11.3 billion in 2006, which included income from discontinued operations of CHF 3.1 billion. The return on equity was 19.8% in 2007 and 12.4% in the fourth quarter of 2007.

Commenting on the results, Brady Dougan, chief executive officer of the firm, said, “I am pleased to announce record results for 2007, which we achieved in an extremely challenging environment. Our integrated business model, global reach, strong risk management capabilities and capital position proved important competitive advantages, as we delivered year-on-year growth and sustained profitability.”

“The resilience of our business model and our disciplined approach were clearly reflected in our fourth-quarter results,” Dougan added. “Private Banking delivered strong growth, benefiting from both the expansion of our international platform in Wealth Management and improved profitability from Corporate & Retail Banking. We contained the impact of the credit market dislocation in Investment Banking and increased revenues from the previous quarter, with strong performances in several major business areas. Our Asset Management division reported a loss in the quarter, reflecting valuation reductions from securities purchased from our money market funds. However, before these valuation reductions, Asset Management continued to perform well, particularly in alternative investments.”

Dougan noted that the firm’s performance in 2007 provides a strong foundation for 2008. “Our earnings base is well diversified by business and geography and we have good growth prospects across our businesses,” he said. “Our risk management capabilities are strong and we are benefiting from increasing bank-wide efficiencies. We are well capitalized and conservatively funded. Most importantly, our integrated model sets us apart from many of our peers and gives us attractive opportunities for sustainable growth and value creation even in the face of difficult markets. These strengths make me confident in our ability to deliver a superior performance over market cycles.”

(1 Swiss franc = 91.87¢)