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
By  Bloomberg
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.

Latest News

Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says
Married retirees could be in for an $18,100 Social Security cut by 2032, CRFB says

A new analysis finds long-running fiscal woes coupled with impacts from the One Big Beautiful Bill Act stand to erode the major pillar for retirement income planning.

SEC bars New Jersey advisor after $9.9M fraud against Gold Star families
SEC bars New Jersey advisor after $9.9M fraud against Gold Star families

Caz Craffy, whom the Department of Justice hit with a 12-year prison term last year for defrauding grieving military families, has been officially exiled from the securities agency.

Navigating the great wealth transfer: Are advisors ready for both waves?
Navigating the great wealth transfer: Are advisors ready for both waves?

After years or decades spent building deep relationships with clients, experienced advisors' attention and intention must turn toward their spouses, children, and future generations.

UBS Financial loses another investor lawsuit involving Tesla stock
UBS Financial loses another investor lawsuit involving Tesla stock

The customer’s UBS financial advisor allegedly mishandled an options strategy called a collar, according to the client’s attorney.

Trump's one big beautiful bill reshapes charitable giving for donors and advisors
Trump's one big beautiful bill reshapes charitable giving for donors and advisors

An expansion to a 2017 TCJA provision, a permanent increase to the standard deduction, and additional incentives for non-itemizers add new twists to the donate-or-wait decision.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.