Credit Suisse Group, Switzerland's second-largest bank, will merge its Credit Suisse First Boston securities with its banking unit.

 

The organizational change is expected to slash costs and boost earnings that have been disappointing of late.

 

The merger of the two units will open ``the way for increased revenues and considerable cost savings,'' according to a Credit Suisse statement. Savings will be caused by reduction in ``less-productive front office staffing'' and ``shifting infrastructure to lower-cost locations.''

 

Mark Hoge, an analyst at Lehman Brothers Holdings Inc. in London, thinks that Credit Suisse First Boston ``is an underperforming business.'' He added that the unit ``needs to get on the growth path and the profitability path soon.''

 

The proclaimed goal is to bring CSFB net income to at least 3 billion Swiss francs ($2.6 billion) by 2007.