Bear Stearns, the US investment bank, has highlighted the importance of cost-cutting by reporting a sharp rise in profits in fiscal 2002 - despite its failure to increase revenues.

The bank recorded profits of $759m (€759m) for the year ended November 30 - a rise of 23%. Revenue remained flat at $4.9bn. Fourth quarter profits also rose 23% to $191m. Return on equity for the year was just under 16%.