Credit Suisse Group reported net income of 5.85 billion Swiss francs ($5.16 billion) for the full year 2005, compared to net income of CHF5.6 billion for 2004.

Net income for 2005 includes a non-cash charge in the fourth quarter of CHF 421 million after tax for certain share-based compensation awards as well as a CHF 624 million after-tax charge in Institutional Securities in the second quarter to increase the reserve for certain private litigation.

Fourth-quarter 2005 net income totalled CHF 1.1 billion, compared to net income of CHF 959 million in the fourth quarter of 2004 and CHF 1.9 billion in the previous quarter. The group recorded a return on equity of 15.4% for the year.

Oswald Grübel, CEO of Credit Suisse Group, stated, “2005 was a decisive year for Credit Suisse Group, as we merged our banking entities while simultaneously growing our business and delivering improved profitability. In particular, our businesses capitalized on increased client activity to produce stronger revenues.”

He added, “Our 2005 results show that we are making good progress in transforming the underlying profitability of our business. Our new integrated structure will help us to further enhance our growth and returns for our shareholders.”

For the full year 2005, Private Banking posted record net income of CHF 2.6 billion. This 7% increase versus 2004 was mainly attributable to strong revenues related to the increase in assets under management, higher trading revenues and an increase in brokerage volumes.

Corporate & Retail Banking recorded net income for the full year 2005 of CHF 1.1 billion – a record result. This represents a 19% improvement versus the full year 2004, driven primarily by net releases of provisions for credit losses of CHF 96 million in 2005 compared to net provisions of CHF 122 million in 2004, reflecting the ongoing favorable credit environment.

Institutional Securities reported net income of CHF 1.1 billion, a decrease of 18% compared to 2004. Excluding the CHF 624 million after-tax charge in the second quarter of 2005 to increase the reserve for certain private litigation matters, net income increased 30% versus the prior year to CHF 1,704 million in 2005.

Wealth & Asset Management’s net income for the full year 2005 increased 25% to CHF 663 million compared to 2004, mainly reflecting a higher level of investment-related gains in Alternative Capital.

Credit Suisse Group’s current outlook for global economic growth and the capital markets is positive. It believes that growth will continue to be robust and that inflation will remain under control, resulting in only moderate rises in interest rates. Provided there are no major adverse geopolitical developments or external events, the Group expects the equity markets to outperform the bond markets, with the US dollar remaining well supported. While oil prices may reach new highs in the early part of 2006, it anticipates that they may trend lower later in the year.