The bank's chief executive officer, Lukas Muehlemann, said the current year had "begun well," with investment-banking unit Credit Suisse First Boston contributing to earnings, and a "very pleasing" performance by Credit Suisse's other four business segments: Swiss retail banking, global private banking, institutional asset management and insurance.

In 1999, Muehlemann noted, "the group anticipates a generally volatile and challenging operating environment in which it plans to achieve further substantial progress."

Last year's net profit was up from 397 million francs in 1997, a year in which Credit Suisse took special charges of around three billion francs to restructure banking operations and add to reserves so as to better position itself for future growth. In 1998, revenuerose 3.3 per cent to 21.7 billion francs from 21.01 billion francs.

In trading on the Swiss Exchange on Tuesday, Credit Suisse shares gained 3.8 per cent, or 9.50 francs, to 259 francs each.

Further Gains Expected "Credit Suisse's performance was above expectations," said Werner Huber, an analyst at Atag Asset Management. Susanne Borer, an analyst at Bank Vontobel, forecasts a further jump in net profit to 3.94 billion francs in 1999 as Credit Suisse benefits from continued strong growth in private banking, a turnaround at Credit Suisse First Boston and a return to profitability in Swiss retail operations.

Muehlemann said top priorities for the group included a buildup of asset management for private and institutional investors, through acquisitions where possible; full exploitation of alternative distribution channels for both banking and insurance products; and a reduction in Credit Suisse First Boston's risk profile.

In 1998, Credit Swiss First Boston posted a loss of 221 millionfrancs in the wake of the financial crisis in Russia. At the end of February, its exposure to Russia was around $1 billion. Muehlemann said sufficient reserves had been created to cover this exposure.

"We feel comfortable in Russia," he added, noting that $440 million of outstanding Russian debt had been repaid to the group. Credit Suisse's chief financial officer, Richard E. Thornburgh -- who will become Credit Suisse First Boston's executive board vice-chairman on April 1 -- said Credit Suisse doesn't expect a deterioration in Russia. He added that "going forward, our Russian exposure will not have an effect on the performance of the group."

Credit Suisse officials said the Credit Suisse First Boston fund for foreign holders of frozen Russian Treasury debt, which would invest in long-term projects, was a constructive way of trying to make use of Russia's enormous natural resources in stead of trying to extract money where there is none.

Most Units Prosper Credit Suisse First Boston was the only unitto report a loss in 1998. Earnings soared in the private-banking division, with net profit rising 27% to 1.67 billion francs from 1.31 billion francs. The institutional asset-management unit boosted net profit 58 per cent to 223 million francs from 141 million francs. Including investment portfolios managed by other units, the Credit Suisse group had 934 billion francs in assets under management at the end of 1998.

After a near decade of depressed performance in the Swiss retail market, which was hard hit by a sluggish economy and a real-estate crisis, the domestic operations of Credit Suisse recorded a net profit of 205 million francs in 1998, after a loss of 278 million the year before.

Restructuring in Switzerland is successfully completed, said Mr. Muehlemann. At Winterthur, Credit Suisse's insurance arm, net profit rose 31% to 884 million francs from 674 million francs in 1997. Mr. Muehlemann said Credit Suisse's strategy of growing in both banking and insurance is "a concept that is function ing."Credit Suisse will pay an unchanged dividend of five francs for 1998.