Banking giant Credit Suisse has reported a 74% fall in net profit for the first three months of the financial year compared to the same period in 2001.

The results, which were worse than analysts' expectations, were knocked down by weak stock markets which hit Credit Suisse's insurance business.

Net profit was 368m Swiss francs (�157.25m), compared to a 1.4bn francs profit last year.

The results were much worse than those of rival UBS, which on Tuesday reported a 14% fall in net profit to 1.36bn francs.

"Credit Suisse Group's core businesses look strong over the long term, and we intend to continue focussing on cost-control efforts and on achieving growth in our key markets," said Credit Suisse Chief Executive Lukas Muehlemann.

The company said the results were a big turnaround from the heavy losses reported in the final quarter of 2001, which were mainly due to a 1.59bn francs loss by the group's investment arm, Credit Suisse First Boston (CSFB).

In January, CSFB agreed to pay stock market regulators in the United States a settlement of $100m, one of the largest ever imposed against a broker, after an inquiry into the way it allocated shares to investors during the dot.com boom.

CSFB's loss during the quarter was 30.7m francs.