Credit Suisse, T. Rowe, FBR and more

Credit Suisse lost $2.1 billion for the first quarter, compared with a profit of $2.7 billion in same period in 2007.
APR 24, 2008
Credit Suisse Group posted a first-quarter earnings loss, with a clutch of other financial services companies reporting small gains or declines in profit. Owing in large part to $5.2 billion in write-downs,Credit Suisse lost $2.1 billion for the first quarter, compared with a profit of $2.7 billion in same period in 2007. The loss was worse than expected by Wall Street, where analysts polled by Thomson Financial of Stamford, Conn., had forecast a first-quarter decline of $663 million. The Zurich, Switzerland-based bank’s asset management division reported a $468 million pre-tax loss, compared with $257 million in income for the first three months of 2007. AllianceBernstein Holding LP reported an 8% drop in quarterly profit, which it attributed to the turbulent capital markets. The New York-based money manager’s first-quarter net income fell to $72.4 million, or 83 cents a unit, from $78.5 million, or 91 cents a unit, in the same period a year ago. The mortgage crisis also impacted AllianceBernstein’s assets under management, which as of March 31 totaled $735 billion, a 1% decrease from the comparable period a year ago. Friedman, Billings, Ramsey Group Inc. posted a first-quarter profit, helped by a 28% reduction in operating expenses. Net income at FBR Group for the first quarter was $45.1 million, or 30 cents per share, compared with losses of $185.9 million, or $1.08 per share, during the same period last year. However, the Arlington, Va.-based investment bank’s assets under management fell 25% to $2.1 billion, compared with $2.8 billion after the first quarter of 2007. First-quarter net income at Franklin Resources Inc. was down 29% to $366.1 million, or $1.54 per diluted share, compared with 518.3 million, or $2.12 per diluted share, in the same period a year ago. Assets under management at the San Mateo, Calif.-based mutual fund company were down 8% from the fourth quarter, with $643.7 billion reported as of March 31, compared with $591.1 billion at the end of 2007. Higher demand for products boosted first-quarter earnings at T. Rowe Price Group Inc. by 6%. The Baltimore-based money manager reported net income of $151.5 million, or 55 cents per share, compared with $142.9 million, or 51 cents per share, in the first quarter of 2007. T. Rowe Price’s assets under management at the end of the first quarter were $378.6 billion, down 5.4% from $400 billion at the end of the 2007. First-quarter earnings at Janus Capital Group Inc. were $39 million, or $0.24 per diluted share, up slightly from net income of $38 million, or $0.20 per diluted share, a year ago. The Denver-based mutual fund company’s assets under management were down 9% from the end of last year, with $187.6 billion reported through the end of March compared to $206.7 billion for the final three months of 2007. First-quarter net income at Allstate Corp. tumbled 77%, due in large part to heavier-than-normal tornado activity around the country, which resulted in a $407 million increase in catastrophic losses over the same period a year prior. The Northbrook, Ill.-based insurance company’s net income for the first three months of the year was $348 million, or 62 cents a share, down from $1.5 billion, or $2.41 a share, in the first quarter of 2007.

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