Credit Suisse Group reported net income of 2.7 billion Swiss francs for the first quarter of 2007.

Income from continuing operations grew 17% in the first quarter of 2007 compared to the first quarter of 2006. The return on equity improved to 25.2% in the first quarter of 2007, from 24.4% in the same period of 2006.

“Our results for the first quarter of 2007 demonstrate the continued progress of our integrated business model,” stated Oswald Grübel, CEO of Credit Suisse. “We have achieved a great deal over recent years and I am convinced that under the leadership of Brady Dougan, the new CEO, Credit Suisse will continue to grow and strengthen its profitability.”

Starting in the first quarter of 2007, Credit Suisse Group is also presenting its results on a core results basis. Core results include the results of the investment banking, private banking and asset management segments and the corporate centre. However, they exclude revenue and expenses in respect of minority interests in which Credit Suisse does not have a significant economic interest in such revenue and expenses.

In the first quarter of 2007, Credit Suisse reported income from continuing operations before taxes on a core results basis of CHF 3.6 billion, up 16% compared to the first quarter of 2006. Net revenue grew 11% to CHF 10.7 billion compared to the first quarter of 2006. Total operating expenses increased 6% to CHF 7 billion compared to the first quarter of 2006.

The investment nanking segment reported income from continuing operations before taxes of CHF 2.0 billion for the first quarter of 2007, up 27% compared to the first quarter of 2006. Net revenue increased 14% in the first quarter of 2007, mainly reflecting record revenue in debt underwriting, equity and fixed-income trading. Provisions for credit losses increased compared to the first quarter of 2006, but remained low in the generally stable credit environment.

The private nanking segment, which comprises the wealth management and corporate and retail banking businesses, reported income from continuing operations before taxes of CHF 1.4 billion for the first quarter of 2007, up 10% compared to the first quarter of 2006.

The asset management segment reported income from continuing operations before taxes of CHF 257 million for the first quarter of 2007, a rise of 10% compared to the first quarter of 2006. Net revenues increased 3% to CHF 776 million compared to the first quarter of 2006, which was positively impacted by a CHF 85 million gain arising from the sale of assets in an emerging market investment fund.

Credit Suisse says that its business pipeline remains robust and it is optimistic about its long-term growth prospects in investment banking, private banking and asset management in view of the healthy macroeconomic environment. Credit Suisse believes that market corrections cannot be excluded in the coming months and expects an increase in market volatility.