laws. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing. We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.

Cautionary statement regarding non-GAAP financial information

This press release may contain non-GAAP financial information. A reconciliation of such non-GAAP financial information to the most directly comparable measures under generally accepted accounting principles, is posted on our website at http://www.credit-suisse.com/sec.html.

Page 14 of 12

Presentation of Credit Suisse Group’s Third Quarter Results 2003 via Webcast and Telephone Conference

 

Date	Tuesday, November 4, 2003
Time	15.00 CET / 14.00 GMT / 09.00 EST
Speakers	Philip K. Ryan, CFO of Credit Suisse Group
	Ulrich Koerner, CFO of Credit Suisse Financial Services
	Barbara Yastine, CFO of Credit Suisse First Boston
	All presentations will be held in English.
Webcast	www.credit-suisse.com/results
Telephone	Europe:   +41 91 610 5600
	UK:       +44 207 107 0611
	USA:      +1 866 291 4166
	Reference: “Credit Suisse Group quarterly results”
Q&A	You will have the opportunity to ask the speakers questions via telephone conference following the presentations.
	Video on demand – available approximately three hours after the event at www.credit-suisse.com/results
Playback	Telephone – available approximately one hour after the event; please dial:
	Europe:   +41 91 612 4330
	UK:       +44 207 866 4300
	USA:      +1 412 858 1440
	Conference ID: 332#
Note	We recommend that you dial in approximately ten minutes before the start of the presentation for the webcast and telephone conference. Further instructions and technical test functions are now available on our website.

 

Page 15 of 12

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QUARTERLY REPORT 2003 Q3

Credit Suisse Group is a leading global financial services company headquartered in Zurich. The business unit Credit Suisse Financial Services provides private clients and small and medium-sized companies with private banking and financial advisory services, banking products, and pension and insurance solutions from Winterthur. The business unit Credit Suisse First Boston, an investment bank, serves global institutional, corporate, government and individual clients in its role as a financial intermediary. Credit Suisse Group’s registered shares (CSGN) are listed in Switzerland and Frankfurt, and in the form of American Depositary Shares (CSR) in New York. The Group employs around 61,300 staff worldwide.

QUARTERLY REPORT 2003    EDITORIAL    CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q3/2003    AN OVERVIEW OF CREDIT SUISSE GROUP       Equity capital       Net new assets       Operating income and expenses       Valuation adjustments, provisions and losses       Business transfers       Swiss GAAP accounting changes       Outlook    RISK MANAGEMENT       Overall Risk Trends       Trading risks       Credit risk exposure    REVIEW OF BUSINESS UNITS | CREDIT SUISSE FINANCIAL SERVICES       Private Banking       Corporate & Retail Banking       Life & Pensions       Insurance    REVIEW OF BUSINESS UNITS | CREDIT SUISSE FIRST BOSTON       Institutional Securities       CSFB Financial Services    RECONCILIATION OF OPERATING RESULTS TO SWISS GAAP       Introduction       Credit Suisse Financial Services business unit       Credit Suisse First Boston business unit    CONSOLIDATED RESULTS | CREDIT SUISSE GROUP    LOANS    INFORMATION FOR INVESTORS

This symbol is used to indicate topics on which further information is available on our website. Go to www.credit-suisse.com/results/bookmarks.html to find links to the relevant information. The additional information -indicated is openly accessible and does not form part of the Quarterly Report. Some areas of Credit Suisse Group’s websites are only available in English.

Cautionary statement regarding forward-looking information

This Quarterly Report contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements.

Words such as "believes," "anticipates," "expects," "intends" and "plans" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing.

We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.

Cautionary statement regarding non-GAAP financial information

This Quarterly Report may contain non-GAAP financial information. A reconciliation of such non-GAAP financial information to the most directly comparable measures under generally accepted accounting principles is contained in this report and is posted on our website at www.credit-suisse.com/sec.html.

EDITORIAL

Oswald J. Grübel
Co-CEO Credit Suisse Group
Chief Executive Officer
Credit Suisse Financial Services


John J. Mack
Co-CEO Credit Suisse Group
Chief Executive Officer
Credit Suisse First Boston

Dear shareholders

Credit Suisse Group’s net profit in the third quarter of 2003 was CHF 2.0 billion. The third quarter net profit includes an after-tax gain of CHF 1.3 billion net of related provisions from divestitures at Winterthur. Additionally, the Group’s third quarter of 2003 net profit includes the strengthening by CHF 383 million after tax of certain provisions related to Winterthur’s current and former international business portfolio.

The Group made considerable progress during the third quarter of 2003. Most notably, Private Banking generated strong revenues, despite the typical third quarter seasonality. Private Banking’s operating income, combined with efficiency gains, resulted in a 79% increase in segment profit compared with the third quarter of 2002. Corporate & Retail Banking also benefited from increased efficiency and low credit provisions. In addition to making good progress in building capital and strengthening its balance sheet, Winterthur made additional improvements in expense reductions and pricing in the first nine months of 2003. Credit Suisse First Boston’s conservative risk positioning in light of US interest rate volatility reduced fixed income trading results but resulted in lower Value-at-Risk. The Equity and Investment Banking divisions of Credit Suisse First Boston continued to see modest improvements in client flows and business activity.

At Credit Suisse Financial Services, the focus on cost management remained a priority and the banking segments reported a reduction in operating expenses in the third quarter, while the insurance segments reported a reduction in administration costs in the first nine months of 2003. At Credit Suisse First Boston, expenses declined, reflecting lower incentive bonus accruals and the change in the vesting period of stock awards. Having reduced the guaranteed portion of incentive-based compensation, Credit Suisse First Boston has delivered on its pledge to create a more flexible cost base. All banking segment results benefited from lower credit provisions as a result of the continued improvement in the credit markets.

Going forward, we are concentrating on producing sound profitability and will continue to focus on cost management, efficiency and building our client franchise.

Oswald J. Grübel John J. Mack
November 2003

CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q3/2003

Consolidated income statement
									Change		Change						Change
									in % from		in % from						in % from
													9 months
in CHF m			3Q2003		2Q2003		3Q2002		2Q2003		3Q2002		2003		2002		2002
Operating income			6,531		7,549		5,666		(13)		15		21,104		21,643		(2)
Gross operating profit			2,144		2,478		314		(13)		–		6,626		3,225		105
Net profit/(loss)			2,045		1,346		(2,148)		52		–		4,043		(2,359)		–

Return on equity

Change

Change

Change

in % from

in % from

in % from

9 months

in %

3Q2003

2Q2003

3Q2002

2Q2003

3Q2002

2003

2002

2002

Return on equity

26.3

18.5

(26.9)

42

–

18.2

(9.2)

–

Consolidated balance sheet
									Change		Change
									in % from		in % from
in CHF m			30.09.03		30.06.03		31.12.02		30.06.03		31.12.02
Total assets			994,555		1,016,645		955,656		(2)		4
Shareholders' equity			34,873		33,428		31,394		4		11
Minority interests in shareholders' equity			2,971		2,940		2,878		1		3

Capital data 1)
									Change		Change
									in % from		in % from
in CHF m			30.09.03		30.06.03		31.12.02		30.06.03		31.12.02
BIS risk-weighted assets			197,412		199,108		196,486		(1)		0
BIS tier 1 capital			21,901		20,487		17,613		7		24
of which non-cumulative perpetual preferred    securities			2,184		2,167		2,162		1		1
BIS total capital			32,010		31,238		28,311		2		13

Capital ratios 1)
in %			30.09.03		30.06.03		31.12.02
BIS tier 1 ratio	Credit Suisse		7.6		7.5		7.4
	Credit Suisse First Boston 2)		12.2		11.0		10.3
	Credit Suisse Group 3)		11.1		10.3		9.0
BIS total capital ratio	Credit Suisse Group		16.2		15.7		14.4

Assets under management/client assets
									Change		Change
									in % from		in % from
in CHF bn			30.09.03		30.06.03		31.12.02		30.06.03		31.12.02
Advisory assets under management			615.1		598.7		577.9		3		6
Discretionary assets under management			584.1		596.9		582.1		(2)		0
Total assets under management			1,199.2		1,195.6		1,160.0		0		3
Client assets			1,299.4		1,285.9		1,757.9		1		(26)

Net new assets

Change

Change

Change

in % from

in % from

in % from

9 months

in CHF bn

3Q2003

2Q2003

3Q2002

2Q2003

3Q2002

2003

2002

2002

Net new assets

4.0

1.9

(13.6)

110.5

–

1.9

4.9

(61)

1) In cooperation with the Swiss Federal Banking Commission, the capital treatment of the Group’s investment in Winterthur has been revised. Previously published comparative figures have been restated to reflect the new methodology. The Group’s previously published figures under the old methodology were 11.1% as of 30.06.03 and 9.7% as of 31.12.02 for the consolidated BIS tier 1 ratio, and 18.0% as of 30.06.03 and 16.5% as of 31.12.02 for the Group’s BIS total capital ratio.

2) Ratio is based on a tier 1 capital of CHF 12.1 bn (30.06.03: CHF 11.3 bn; 31.12.02: CHF 10.6 bn), of which non-cumulative perpetual preferred securities is CHF 1.0 bn (30.06.03: CHF 1.0 bn; 31.12.02: CHF 1.0 bn).

3) Ratio is based on a tier 1 capital of CHF 21.9 bn (30.06.03: CHF 20.5 bn; 31.12.02: CHF 17.6 bn), of which non-cumulative perpetual preferred securities is CHF 2.2 bn (30.06.03: CHF 2.2 bn; 31.12.02: CHF 2.2 bn).

Number of employees (full-time equivalents)
										Change		Change
										in % from		in % from
				30.09.03		30.06.03		31.12.02		30.06.03		31.12.02
Switzerland	banking			20,042		20,541		21,270		(2)		(6)
	insurance			6,649		6,797		7,063		(2)		(6)
Outside Switzerland	banking			20,178		20,108		25,057		0		(19)
	insurance			14,463		25,055		25,067		(42)		(42)
Total employees Credit Suisse Group				61,332		72,501		78,457		(15)		(22)

Share data
								Change		Change
								in % from		in % from
		30.09.03		30.06.03		31.12.02		30.06.03		31.12.02
Shares issued		1,194,682,330		1,189,980,152		1,189,891,720		0		0
To be issued upon conversion of MCS 1)		40,413,838		40,413,838		40,413,838		0		0
Shares outstanding		1,235,096,168		1,230,393,990		1,230,305,558		0		0
Share price in CHF		42.25		35.65		30.00		19		41
Market capitalization in CHF m		52,183		43,864		36,909		19		41
Book value per share in CHF		25.83		24.78		23.18		4		11
1) Maximum number of shares related to Mandatory Convertible Securities (MCS) issued by Credit Suisse Group Finance (Guernsey) Ltd. in December 2002.

Share price
								Change		Change						Change
								in % from		in % from						in % from
												9 months
in CHF		3Q2003		2Q2003		3Q2002		2Q2003		3Q2002		2003		2002		2002
High (closing price)		48.65		39.30		48.85		24		0		48.65		73.60		(34)
Low (closing price)		34.75		23.25		26.80		49		30		20.70		26.80		(23)

Calculation of earnings per share (EPS)
								Change		Change						Change
								in % from		in % from						in % from
												9 months
		3Q2003		2Q2003		3Q2002		2Q2003		3Q2002		2003		2002		2002
Net profit/(loss) in CHF m		2,045		1,346		(2,148)		52		–		4,043		(2,359)		–
Diluted net profit/(loss) in CHF m		2,045		1,346		(2,148)		52		–		4,043		(2,359)		–
Weighted average shares outstanding		1,230,710,975		1,230,330,673		1,189,341,056	1)	0		3		1,230,450,554		1,189,212,967	1)	3
Dilutive impact  2)		19,673,449		4,922,814		0		300		–		9,814,553		0		–
Weighted average shares, diluted		1,250,384,424		1,235,253,487		1,189,341,056		1		5		1,240,265,107		1,189,212,967		4
Basic earnings per share in CHF		1.66		1.09		(1.81)		52		–		3.29		(1.98)		–
Diluted earnings per share in CHF		1.64		1.09		(1.81)		50		–		3.26		(1.98)		–
1) Adjusted for weighted average shares repurchased.
2) The calculation for the diluted loss per share in 3Q2002 and for the 9 months 2002 excludes the effect of the potential exchange of convertible bonds and the potential exercise of options to purchase shares, as the effect would be anti-dilutive.

AN OVERVIEW OF CREDIT SUISSE GROUP

Credit Suisse Group reported a net profit of CHF 2.0 billion in the third quarter of 2003 compared to CHF 1.3 billion in the previous quarter. The third quarter result includes an after-tax gain of CHF 1.3 billion net of related provisions from divestitures at Winterthur. Additionally, the Group’s third quarter result includes the strengthening by CHF 383 million after tax of certain provisions related to Winterthur’s current and former international business portfolio. Credit Suisse Financial Services substantially increased its third quarter net profit compared with the previous quarter, with strong results in the banking segments and continued improvements in the insurance segments in the course of the year. Credit Suisse First Boston reported a decrease in its third quarter results compared with the second quarter of 2003.

The Group reported a net profit of CHF 2.0 billion in the third quarter of 2003, a substantial increase from the previous quarter’s net profit of CHF 1.3 billion. The net profit of CHF 2.0 billion in the third quarter 2003 includes a gross after-tax gain of CHF 1.6 billion, or CHF 1.3 billion net of related provisions, from the divestitures of Winterthur’s Republic operations in the US, its Churchill operations in the UK and Winterthur Italy . Additionally, the Group’s net profit in the third quarter of 2003 includes the strengthening by CHF 383 million after tax of certain provisions related to Winterthur’s current and former international business portfolio. The Group’s third quarter performance was impacted by weaker trading income at Credit Suisse First Boston, which was partially compensated by improved results within the Credit Suisse Financial Services banking segments.

Net profit for the first nine months of 2003 was CHF 4.0 billion, compared to a net loss of CHF 2.4 billion in the same period of 2002. Earnings per share for the third quarter of 2003 were CHF 1.66, compared to CHF 1.09 for the second quarter of 2003. The Group’s return on equity was 26.3% in the third quarter of 2003, compared to 18.5% in the second quarter of 2003.

The Group’s third quarter result represents continued progress towards achieving sound profitability and restoring the capital base. It also reflects the realization of measures taken to reduce costs, increase the flexibility of the cost base, return Winterthur to profitability, reduce the impact of legacy assets at Credit Suisse First Boston and restructure European onshore Private Banking.

Credit Suisse Financial Services posted a net profit of CHF 1.8 billion in the third quarter of 2003, including the gain from the Winterthur divestitures and the additional provisions described above. This result compares with a net profit of CHF 851 million in the second quarter of 2003 and a net loss of CHF 1.2 billion in the third quarter of 2002. Although the third quarter has often proven to be a seasonally weak quarter, the banking segments in particular had a strong quarter, reflecting continued good margins and improvements in net new asset growth, thus demonstrating efficiency and the strength of the private banking franchise. Winterthur’s results reflected the divestitures, as well as lower administration costs and good investment income, which together improved its capital base and strengthened its balance sheet.

Credit Suisse First Boston reported a net profit of CHF 308 million for the third quarter of 2003, which was below the previous quarter’s net profit of CHF 373 million, but significantly improved compared to a net loss of CHF 668 million reported in the third quarter of 2002. Credit Suisse First Boston continues to reduce expenses and focus on its client franchise. Its third quarter result, however, reflects a lower fixed income trading result, which was impacted by conservative risk positioning in light of US interest rate volatility, thus resulting in reduced Value-at-Risk. While both the Equity and Investment Banking divisions continued to see steady improvements in client flows and M&A activity, operating income in both divisions declined compared with the second quarter of 2003. CSFB Financial Services’ operating income increased slightly compared with the previous quarter, with modest improvements in both Credit Suisse Asset Management and Private Client Services. Credit Suisse Asset Management launched an alternative investment initiative in the third quarter of 2003.

Equity capital

The Group’s consolidated BIS tier 1 ratio was 11.1% as of September 30, 2003, up from 10.3% as of June 30, 2003. These ratios reflect the new methodology for the BIS capital calculations as revised in cooperation with the Swiss Federal Banking Commission.

Winterthur’s capital base was strengthened during the third quarter of 2003 as a result of earnings generation and the sale of Winterthur’s Republic operations in the US, its Churchill operations in the UK and Winterthur Italy. In isolation, these divestitures increased Winterthur’s EU Group solvency surplus capital by approximately CHF 3.5 billion, due to the combination of lowered required capital and higher available capital.

Net new assets

Credit Suisse Group’s net new asset inflow in the third quarter of 2003 was dominated by an inflow from Private Banking of CHF 8.4 billion. Corporate & Retail Banking recorded an inflow of CHF 1.8 billion, whereas Life & Pensions had an outflow of CHF 0.7 billion. CSFB Financial Services recorded an outflow of CHF 5.6 billion, only slightly compensated by a net asset inflow of CHF 0.1 billion from the Institutional Securities segment. For Credit Suisse Group, a net new asset inflow of CHF 4.0 billion resulted in the third quarter of 2003, more than twice the net new asset inflow in the previous quarter. As of September 30, 2003, the Group’s total assets under management amounted to CHF 1,199.2 billion, practically unchanged compared to June 30, 2003.

Operating income and expenses

The Group’s operating income was CHF 6.5 billion in the third quarter of 2003, a decline of 13% from the previous quarter, but up 15% from the third quarter of 2002. The decrease compared with the second quarter of 2003 was mainly due to a decline in trading income, partially offset by increases in net interest and commission and service fee income.

The Group’s operating expenses in the third quarter of 2003 decreased 13% from the previous quarter and 18% from the third quarter of 2002 to CHF 4.4 billion, reflecting continued progress on cost management. Personnel expenses declined 18% overall compared with the previous quarter. This decrease reflects lower incentive compensation accruals at Credit Suisse First Boston, in line with lower operating income, and the impact of reversing the first six months of 2003 accrual for stock compensation in the third quarter of 2003 due to the previously announced change in vesting of stock awards. At Credit Suisse Financial Services, the continued focus on cost reduction resulted in a decrease in operating expenses in the banking segments in the third quarter of 2003 and in a decline in administration costs in the insurance segments in the first nine months of 2003.

Valuation adjustments, provisions and losses

The Group’s total valuation adjustments, provisions and losses were CHF 215 million in the third quarter of 2003, compared to CHF 131 million in the second quarter of 2003. In the third quarter of 2003, net credit-related valuation allowances and provisions decreased slightly to CHF 96 million from the already low level of CHF 99 million in the second quarter of 2003. Compared with the third quarter of 2002, valuation adjustments, provisions and losses decreased CHF 758 million, or 78%, primarily due to lower credit valuation allowances and provisions reflecting an improved credit environment, loan repayments and loan sales.

Business transfers

In the third quarter of 2003, the transfer of the securities and treasury execution platform in Switzerland from Credit Suisse First Boston to Credit Suisse Financial Services and the transfer of Credit Suisse First Boston’s Private Client Services UK business from CSFB Financial Services to Private Banking were completed. All comparative figures have been restated to reflect these business transfers. The consolidated financial statements were not affected. Since September 1, 2003, Credit Suisse Financial Services has been executing securities and treasury transactions in Switzerland for its private banking, retail and corporate clients under its own name. Credit Suisse First Boston’s investment banking and Swiss institutional coverage businesses in Switzerland remain unaffected by these changes.

Swiss GAAP accounting changes

Reported earnings in the fourth quarter will be affected by mandatory changes in Swiss GAAP for banks that are required to be applied at the end of the year. The changes of significance for Credit Suisse Group relate to the accounting for own shares and for derivatives. If these changes in accounting principles were to be applied in the current reporting period, the estimated impact on net profit (including the cumulative effect) for the first nine months of 2003 would be a decrease of approximately CHF 110 million, and the estimated impact on reported shareholders’ equity would be a decrease of CHF 0.6 billion. These changes have no impact on the Group’s regulatory capital adequacy ratios.

Outlook

Credit Suisse Group is benefiting from the measures taken in 2002 and 2003. Going forward, the Group will continue to concentrate on enhancing efficiency and building its client franchise and remains focused on producing sound profitability.

In the “Overview of Credit Suisse Group”, the business unit results are presented in accordance with Swiss GAAP. Elsewhere in this Quarterly Report, business unit results are presented on an operating basis.

For a reconciliation of operating basis business unit results (reflecting the results of the separate segments comprising the business units) to the Swiss GAAP basis, a discussion of the material reconciling items and a discussion of the purpose of the operating basis results and the reasons why management believes they provide useful information for investors, please refer to “Reconciliation of operating results to Swiss GAAP” on pages 32 – 36.

Overview of Credit Suisse Group 1)
		Credit Suisse Financial Services						Credit Suisse First Boston						Corporate Center						Credit Suisse Group
in CHF m		3Q2003		2Q2003		3Q2002		3Q2003		2Q2003		3Q2002		3Q2003		2Q2003		3Q2002		3Q2003		2Q2003		3Q2002
Operating income		3,387		3,544		2,497		3,113		3,886		3,408		31		119		(239)		6,531		7,549		5,666
Personnel expenses		1,385		1,434		1,533		1,681		2,306		2,231		59		84		29		3,125		3,824		3,793
Other operating expenses		732		744		923		594		615		723		(64)		(112)		(87)		1,262		1,247		1,559
Operating expenses		2,117		2,178		2,456		2,275		2,921		2,954		(5)		(28)		(58)		4,387		5,071		5,352
Gross operating profit		1,270		1,366		41		838		965		454		36		147		(181)		2,144		2,478		314
Depreciation of non-current assets 2)		279		194		291		125		136		207		67		145		94		471		475		592
Amortization of acquired intangible assets and goodwill		25		27		31		211		201		308		2		(5)		(2)		238		223		337
Valuation adjustments, provisions and losses		104		63		122		111		63		867		0		5		(16)		215		131		973
Profit/(loss) before extraordinary items and taxes		862		1,082		(403)		391		565		(928)		(33)		2		(257)		1,220		1,649		(1,588)
Extraordinary income/(expenses), net		1,164		8		(127)		2		0		(1)		2		53		(3)		1,168		61		(131)
Taxes 3)		(256)		(229)		(681)		(65)		(173)		280		4		83		(9)		(317)		(319)		(410)
Net profit/(loss) before minority interests		1,770		861		(1,211)		328		392		(649)		(27)		138		(269)		2,071		1,391		(2,129)
Minority interests		8		(10)		17		(20)		(19)		(19)		(14)		(16)		(17)		(26)		(45)		(19)
Net profit/(loss)		1,778		851		(1,194)		308		373		(668)		(41)		122		(286)		2,045		1,346		(2,148)
1) Business unit results in accordance with Swiss GAAP. For a reconciliation of operating basis business unit results (reflecting the results of the separate segments comprising the business units) to Swiss GAAP basis, please refer to “Reconciliation of operating results to Swiss GAAP”.
2) Includes amortization of Present Value of Future Profits (PVFP) from the insurance business within Credit Suisse Financial Services.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. The retroactive application of this change in accounting principle would have resulted in taxes for 3Q2002 for Credit Suisse Financial Services of CHF –582 m, for Credit Suisse First Boston of CHF 286 m, and for Credit Suisse Group of CHF –306 m.

Assets under management/client assets  1)
								Change		Change
								in % from		in % from
in CHF bn		30.09.03		30.06.03		31.12.02		30.06.03		31.12.02
Credit Suisse Financial Services
Private Banking
Assets under management		505.1		493.8		465.7		2.3		8.5
of which discretionary		129.2		128.3		121.5		0.7		6.3
Client assets		532.3		522.3		494.8		1.9		7.6
Corporate & Retail Banking
Assets under management		69.4		66.8		70.3		3.9		(1.3)
Client assets		90.3		85.7		86.9		5.4		3.9
Life & Pensions
Assets under management (discretionary)		112.3		117.0		110.8		(4.0)		1.4
Client assets		112.3		117.0		110.8		(4.0)		1.4
Insurance
Assets under management (discretionary)		27.1		32.6		30.7		(16.9)		(11.7)
Client assets		27.1		32.6		30.7		(16.9)		(11.7)
Credit Suisse Financial Services
Assets under management		713.9		710.2		677.5		0.5		5.4
of which discretionary		269.8		279.1		264.2		(3.3)		2.1
Client assets		762.0		757.6		723.2		0.6		5.4
Credit Suisse First Boston
Institutional Securities
Assets under management		29.1		31.0		31.3		(6.1)		(7.0)
of which Private Equity on behalf of clients       (discretionary)		19.7		20.6		20.9		(4.4)		(5.7)
Client assets		73.3		73.9		83.3		(0.8)		(12.0)
CSFB Financial Services 2)
Assets under management		456.2		454.4		451.2		0.4		1.1
of which discretionary		288.9		291.1		289.6		(0.8)		(0.2)
Client assets		464.1		454.4		951.4		2.1		(51.2)
Credit Suisse First Boston
Assets under management		485.3		485.4		482.5		0.0		0.6
of which discretionary		314.3		317.8		317.9		(1.1)		(1.1)
Client assets		537.4		528.3		1,034.7		1.7		(48.1)
Credit Suisse Group
Assets under management		1,199.2		1,195.6		1,160.0		0.3		3.4
of which discretionary		584.1		596.9		582.1		(2.1)		0.3
Client assets		1,299.4		1,285.9		1,757.9		1.0		(26.1)
1) Comparative figures have been restated to reflect the transfer of the securities and treasury execution platform transactions of Credit Suisse First Boston in Switzerland to Credit Suisse Financial Services and the transfer of Credit Suisse First Boston's Private Client Services UK business from CSFB Financial Services to Private Banking.
2) Excluding assets managed on behalf of other entities within Credit Suisse Group.

Net new assets 1)
								Change		Change						Change
								in % from		in % from						in % from
												9 months
in CHF bn		3Q2003		2Q2003		3Q2002		2Q2003		3Q2002		2003		2002		2002
Credit Suisse Financial Services
Private Banking		8.4		3.8		3.4		121.1		147.1		13.7		18.2		(24.7)
Corporate & Retail Banking		1.8		0.5		(2.3)		260.0		–		(1.1)		(3.4)		(67.6)
Life & Pensions		(0.7)		0.5		0.4		–		–		2.0		4.7		(57.4)
Credit Suisse Financial Services		9.5		4.8		1.5		97.9		–		14.6		19.5		(25.1)
Credit Suisse First Boston
Institutional Securities		0.1		1.0		(3.0)		(90.0)		–		1.0		1.9		(47.4)
CSFB Financial Services 2)		(5.6)		(3.9)		(12.1)		43.6		(53.7)		(13.7)		(16.5)		(17.0)
Credit Suisse First Boston		(5.5)		(2.9)		(15.1)		89.7		(63.6)		(12.7)		(14.6)		(13.0)
Credit Suisse Group		4.0		1.9		(13.6)		110.5		–		1.9		4.9		(61.2)
1) Comparative figures have been restated to reflect the transfer of the securities and treasury execution platform transactions of Credit Suisse First Boston in Switzerland to Credit Suisse Financial Services and the transfer of Credit Suisse First Boston's Private Client Services UK business from CSFB Financial Services to Private Banking.
2) Excluding assets managed on behalf of other entities within Credit Suisse Group.

RISK MANAGEMENT

Credit Suisse Group’s overall position risk measured on the basis of Economic Risk Capital (ERC) decreased by 4% in the third quarter of 2003 compared with the previous quarter, due mainly to lower foreign exchange, fixed income positions and insurance underwriting risks as well as lower international lending exposures. The more narrowly defined average Value-at-Risk (VaR) for the trading book of Credit Suisse First Boston decreased 20% in the third quarter of 2003, due mainly to lower interest rate positions and the introduction of a refined risk methodology for mortgages. The Group’s credit-related balance sheet exposure decreased 3% as of September 30, 2003, compared to June 30, 2003.

Overall Risk Trends

Credit Suisse Group’s 1-year, 99% position risk ERC decreased by 4% in the third quarter of 2003 compared with the previous quarter. The reduction was mainly due to lower foreign exchange exposures and lower insurance underwriting risks at Winterthur following the divestitures completed during the third quarter of 2003 as well as lower credit spread positions and lower international lending and counterparty exposures at Credit Suisse First Boston. At the end of the third quarter of 2003, 52% of the Group’s position risk ERC was with Credit Suisse First Boston, 44% with Credit Suisse Financial Services (of which 66% was with the insurance units and 34% with the banking units) and 4% with the Corporate Center.

Trading risks

The table below shows the trading-related market risk exposure for Credit Suisse First Boston, Credit Suisse Financial Services and Credit Suisse Group on a consolidated basis, as measured by 1-day, 99% VaR. At Credit Suisse First Boston, the average 1-day, 99% VaR in the third quarter of 2003 was CHF 69.3 million compared to CHF 87.0 million during the second quarter of 2003. This decrease was mainly due to lower interest rate positions and the introduction of a refined risk methodology for mortgages. The Credit Suisse First Boston VaR at the end of the third quarter of 2003 was 38% below the VaR at the end of the second quarter of 2003 adjusted for the methodology change. As shown on the backtesting chart, Credit Suisse First Boston had no backtesting exceptions over the last 12 months (on average, an accurate 1-day, 99% VaR model would have no more than 2.5 exceptions per annum). At Credit Suisse Financial Services, the average 1-day, 99% VaR in the third quarter of 2003 was CHF 15.0 million compared to CHF 15.7 million during the previous quarter. The decrease was mainly due to lower inventory positions in structured investment products, partially offset by the impact of the transfer of the securities and treasury execution platform in Switzerland from Credit Suisse First Boston to Credit Suisse Financial Services.

Credit risk exposure

Credit Suisse Group’s total credit-related exposure was 3% lower at September 30, 2003, compared to June 30, 2003. Exposure at Credit Suisse Financial Services increased 4%, while exposure at Credit Suisse First Boston was largely unchanged. The reduction on a consolidated basis was primarily a result of increased intercompany exposure that appears in the business unit figures but is eliminated in the Credit Suisse Group consolidation.

Compared to June 30, 2003, non-performing and total impaired loans for Credit Suisse Group declined as of the end of the third quarter 2003, with reductions reported in both business units. Compared with the previous quarter, total non-performing loans declined 10% at both business units and on a consolidated basis. The reduction in total impaired loans during the third quarter of 2003 was 11% at Credit Suisse Financial Services and 10% at Credit Suisse First Boston. The decline in impaired assets is attributable to repayments, improved credit situations, loan sales and write-offs.

The net credit-related valuation allowances and provisions charged to the income statement for the third quarter of 2003 was CHF 96 million, a slight decrease from the second quarter of 2003, but significantly below that recorded for the third quarter of 2002, particularly at Credit Suisse First Boston. Presented on page 11 are the additions, releases and recoveries included in calculating the net credit-related valuation allowances and provisions.

Coverage of non-performing loans and impaired loans by the valuation allowances improved for both Credit Suisse Group and Credit Suisse First Boston, while coverage declined slightly for Credit Suisse Financial Services. The quality of the credit exposure for Credit Suisse Group, as measured by counterparty rating, was largely unchanged from the second quarter of 2003.

Key Position Risk Trends
								Change Analysis: Brief Summary
				Change in % from
in CHF m		3Q2003		2Q2003		3Q2002		3Q2003 vs 2Q2003
Real Estate ERC &
Structured Asset ERC 1)		3,992		(4%)		(11%)		Further reduction in legacy commercial real estate exposures at CSFB, partially offset by higher residential real estate exposures
Developed Market Fixed Income &
Foreign Exchange ERC		3,602		(11%)		(5%)		Lower foreign exchange exposures at Winterthur and lower credit spread exposures at CSFB
Equity Investment ERC		3,177		(2%)		(27%)		Lower equity positions at Winterthur, partially offset by higher equity trading exposures at CSFB and the CSFS banking segments
International Lending ERC		2,797		(10%)		(29%)		Loan sales to third parties and counterparty exposure reductions at CSFB
Swiss & Retail Lending ERC		1,898		(3%)		(9%)		Lower exposures with respect to Swiss corporates at Corporate & Retail Banking and lower mortgage exposures at Winterthur
Emerging Markets ERC		1,576		2%		(30%)		Higher Brazil, Turkey and Indonesia exposure, partially offset by lower Russia exposure
Insurance Underwriting ERC		647		(38%)		(22%)		Divestiture of Republic operations, Churchill and Winterthur Italy
Simple sum across risk categories		17,689
Diversification benefit		(6,096)
Total position risk ERC		11,593		(4%)		(19%)
99%, 1-year position risk ERC, excluding foreign exchange translation risk. For an assessment of the total risk profile, operational risk ERC and business risk ERC have to be considered as well. Note that prior period risk data have been restated for methodology changes in order to maintain consistency over time. For a more detailed description of the Group’s ERC model, please refer to Credit Suisse Group's Annual Report 2002, which is available on the website: www.credit-suisse.com.
1) This category comprises the real estate investments of Winterthur, Credit Suisse First Boston’s commercial real estate exposures, Credit Suisse First Boston’s residential real estate exposures, Credit Suisse First Boston’s asset-backed securities exposures as well as the real estate acquired at auction and real estate for own use in Switzerland.

Trading exposures (1-day, 99% VaR)
		Credit Suisse				Credit Suisse
		Financial Services				First Boston			1)	Credit Suisse Group			2)
in CHF m		3Q2003		2Q2003		3Q2003		2Q2003		3Q2003		2Q2003
Total VaR
Period end		19.1		16.5		50.4		102.2		55.1		99.9
Average		15.0		15.7		69.3		87.0		56.3		82.7
Maximum		19.7		20.8		152.5		146.0		58.7		99.9
Minimum		11.3		13.9		35.1		64.2		55.1		69.0
in CHF m		30.09.03		30.06.03		30.09.03		30.06.03		30.09.03		30.06.03
VaR by risk type
Interest rate		7.0		2.7		43.7		118.0		47.9		119.5
Foreign exchange		2.2		2.1		18.3		14.8		18.6		14.3
Equity		15.5		15.4		28.1		25.7		27.2		25.5
Commodity		0.5		0.1		1.5		0.8		1.3		0.7
Subtotal		25.2		20.3		91.6		159.3		95.0		160.0
Diversification benefit		(6.1)		(3.8)		(41.2)		(57.1)		(39.9)		(60.1)
Total		19.1		16.5		50.4		102.2		55.1		99.9
1) The CSFB VaR is calculated using the US dollar as the base currency. For the purpose of this disclosure, the CSFB VaR numbers are translated using the respective CSG currency translation closing rate.
2) As Credit Suisse Group does not manage its trading portfolios on a consolidated level, consolidated VaR calculations are performed on a monthly basis only. The average, maximum and minimum values therefore refer to the three month-ends during the quarter. The consolidated VaR calculations for Credit Suisse Group are net of diversification benefits between Credit Suisse First Boston and Credit Suisse Financial Services.

Total credit risk exposure 1)
		Credit Suisse Financial Services						Credit Suisse First Boston						Credit Suisse Group
in CHF m		30.09.03		30.06.03		31.12.02		30.09.03		30.06.03		31.12.02		30.09.03		30.06.03		31.12.02
Due from banks 2)		42,512		34,595		33,306		66,785		65,924		43,462		58,511		68,939		39,469
Due from customers and mortgages 2)		138,060		136,180		132,353		70,175		83,880		82,395		206,794		219,270		213,206
Total due from banks and customers, gross 2)		180,572		170,775		165,659		136,960		149,804		125,857		265,305		288,209		252,675
Contingent liabilities		11,743		12,330		12,349		38,147		29,586		27,862		40,981		41,056		39,104
Irrevocable commitments 3)		3,341		3,670		2,263		77,676		80,773		81,884		81,370		85,036		85,333
Total banking products		195,656		186,775		180,271		252,783		260,163		235,603		387,656		414,301		377,112
Loans held for sale 4)		0		0		–		17,028		16,338		–		17,028		16,338		–
Derivative instruments 5)		4,401		4,452		5,018		54,283		56,416		51,600		56,877		59,618		54,757
Securities lending – banks		0		0		0		0		0		0		0		0		0
Securities lending – customers		0		0		0		1,782		69		64		1,782		69		64
Reverse repurchase agreements – banks		5,232		6,717		6,283		168,498		144,214		154,531		169,427		146,443		156,397
Reverse repurchase agreements – customers		7,745		8,094		14,528		41,094		52,724		56,987		48,767		60,536		71,384
Forward reverse repurchase agreements		0		0		0		10,115		13,855		7,617		10,115		13,855		7,617
Total traded products		17,378		19,263		25,829		275,772		267,278		270,799		286,968		280,521		290,219
Total credit risk exposure, gross		213,034		206,038		206,100		545,583		543,779		506,402		691,652		711,160		667,331
Loan valuation allowances and provisions		(3,098)		(3,480)		(4,092)		(2,831)		(3,053)		(3,817)		(5,932)		(6,532)		(7,911)
Total credit risk exposure, net		209,936		202,558		202,008		542,752		540,726		502,585		685,720		704,628		659,420
1) Comparative figures have been restated to reflect the transfer of the securities and treasury execution platform transactions of Credit Suisse First Boston in Switzerland to Credit Suisse Financial Services. Credit Suisse Financial Services/Credit Suisse First Boston reflect business unit amounts. Total consolidated Credit Suisse Group amounts include adjustments and Corporate Center.
2) Excluding loans held for sale, securities lending and reverse repurchase transactions.
3) Excluding forward reverse repurchase agreements. Prior periods restated.
4) Effective 1Q2003, loans held for sale are presented net of the related loan valuation allowances.
5) Positive replacement values considering netting agreements.

Total loan portfolio exposure and allowances and provisions for credit risk 1)
		Credit Suisse Financial Services						Credit Suisse First Boston						Credit Suisse Group
in CHF m		30.09.03		30.06.03		31.12.02		30.09.03		30.06.03		31.12.02		30.09.03		30.06.03		31.12.02
Non-performing loans		2,291		2,600		3,004		1,679		1,926		3,351		3,970		4,526		6,355
Non-interest earning loans		1,577		1,706		2,108		437		437		217		2,015		2,143		2,325
Total non-performing loans		3,868		4,306		5,112		2,116		2,363		3,568		5,985		6,669		8,680
Restructured loans		22		63		52		327		198		229		349		261		281
Potential problem loans		1,448		1,599		1,723		730		965		1,685		2,178		2,565		3,408
Total other impaired loans		1,470		1,662		1,775		1,057		1,163		1,914		2,527		2,826		3,689
Total impaired loans		5,338		5,968		6,887		3,173		3,526		5,482		8,512		9,495		12,369
Total due from banks and customers, gross		180,572		170,775		165,659		136,960		149,804		125,857		265,305		288,209		252,675
Valuation allowances		3,061		3,446		4,053		2,727		2,928		3,647		5,790		6,373		7,703
of which on principal		2,454		2,749		3,201		2,466		2,692		3,416		4,921		5,441		6,617
of which on interest		607		697		852		261		236		231		869		932		1,086
Total due from banks and customers, net		177,511		167,329		161,606		134,233		146,876		122,210		259,515		281,836		244,972
Provisions for contingent liabilities and irrevocable commitments		37		34		39		104		125		170		142		159		208
Total valuation allowances and provisions		3,098		3,480		4,092		2,831		3,053		3,817		5,932		6,532		7,911
Ratios
Valuation allowances as % of total non-performing loans		79.1%		80.0%		79.3%		128.9%		123.9%		102.2%		96.7%		95.6%		88.7%
Valuation allowances as % of total impaired loans		57.3%		57.7%		58.9%		85.9%		83.0%		66.5%		68.0%		67.1%		62.3%
1) Comparative figures have been restated to reflect the transfer of the securities and treasury execution platform transactions of Credit Suisse First Boston in Switzerland to Credit Suisse Financial Services. Credit Suisse Financial Services/Credit Suisse First Boston reflect business unit amounts. Total consolidated Credit Suisse Group amounts include adjustments and Corporate Center.

Roll forward of loan valuation allowance 1)
		Credit Suisse Financial Services						Credit Suisse First Boston						Credit Suisse Group
in CHF m		3Q2003		2Q2003		3Q2002		3Q2003		2Q2003		3Q2002		3Q2003		2Q2003		3Q2002
At beginning of period		3,446		3,776		4,618		2,928		3,115		3,244		6,373		6,891		7,862
Additions		213		129		212		141		139		611		353		268		821
Releases		(133)		(80)		(107)		(105)		(70)		(49)		(238)		(150)		(156)
Net additions charged to income statement		80		49		105		36		69		562		115		118		665
Gross write-offs		(438)		(408)		(747)		(239)		(373)		(362)		(676)		(778)		(1,110)
Recoveries		8		6		7		12		6		5		21		12		11
Net write-offs		(430)		(402)		(740)		(227)		(367)		(357)		(655)		(766)		(1,099)
Provisions for interest		1		13		21		31		13		30		31		27		52
Foreign currency translation impact and other		(36)		10		(3)		(41)		98		(103)		(74)		103		(102)
At end of period		3,061		3,446		4,001		2,727		2,928		3,376		5,790		6,373		7,378
1) Credit Suisse Financial Services/Credit Suisse First Boston reflect business unit amounts. Total consolidated Credit Suisse Group amounts include adjustments and Corporate Center.

Net credit-related valuation allowances and provisions 1)
		Credit Suisse Financial Services						Credit Suisse First Boston						Credit Suisse Group
in CHF m		3Q2003		2Q2003		3Q2002		3Q2003		2Q2003		3Q2002		3Q2003		2Q2003		3Q2002
Net additions to loan valuation allowance		80		49		105		36		69		562		115		118		665
Net additions to provisions for contingent liabilities and irrevocable commitments		6		(5)		1		(26)		(16)		172		(19)		(19)		153
Total net credit-related valuation allowances and provisions charged to income statement		86		44		106		10		53		734		96		99		818
1) Credit Suisse Financial Services/Credit Suisse First Boston reflect business unit amounts. Total consolidated Credit Suisse Group amounts include adjustments and Corporate Center.

REVIEW OF BUSINESS UNITS | CREDIT SUISSE FINANCIAL SERVICES

Credit Suisse Financial Services recorded a net profit of CHF 1.8 billion in the third quarter of 2003. This result includes an after-tax gain resulting from divestitures of Winterthur of CHF 1.3 billion, net of related provisions. Additionally, Credit Suisse Financial Services’ third quarter result includes the strengthening by CHF 383 million after tax of certain provisions related to its current and former international business portfolio. The banking segments improved their results for the third consecutive quarter, due mainly to slightly higher operating income and lower operating expenses. Assets under management remained stable at CHF 713.9 billion at the end of the third quarter of 2003, despite a negative impact from the Winterthur divestitures. Net new assets almost doubled to CHF 9.5 billion versus the previous quarter.

In the third quarter of 2003, Credit Suisse Financial Services reported a net profit of CHF 1.8 billion versus a net loss of CHF 1.2 billion in the corresponding period of the previous year. The third quarter 2003 result includes an after-tax gain of CHF 1.3 billion, net of related provisions, from the divestitures of Winterthur’s Republic operations in the US, its Churchill operations in the UK and Winterthur Italy . Additionally, Credit Suisse Financial Services’ third quarter result includes the strengthening by CHF 383 million after tax of certain provisions related to its current and former international business portfolio. In the first nine months of 2003, Credit Suisse Financial Services recorded a net profit of CHF 3.3 billion versus a net loss of CHF 891 million in the corresponding period of the previous year. The business unit’s result in the third quarter of 2003 was also affected by the business transfers discussed in “An overview of Credit Suisse Group – Business transfers” on page 7.

Winterthur’s capital base was strengthened during the third quarter of 2003 as a result of earnings generation and the above-mentioned divestitures. In isolation, these divestitures increased Winterthur’s EU Group solvency surplus capital by approximately CHF 3.5 billion, due to the combination of lowered required capital and higher available capital.

Assets under management for Credit Suisse Financial Services remained stable versus the end of the previous quarter and amounted to CHF 713.9 billion at the end of the third quarter of 2003, despite the CHF 13.7 billion negative impact of the Winterthur divestitures. Net new assets almost doubled in the third quarter of 2003 versus the previous quarter, amounting to CHF 9.5 billion for Credit Suisse Financial Services, with an especially strong contribution from Private Banking of CHF 8.4 billion.

As noted on page 5, the results of the Credit Suisse Financial Services business unit and its segments are discussed on an operating basis. For a reconciliation of operating basis business unit results to Swiss GAAP and a discussion of the material reconciling items, the purpose of the operating basis results and the reasons why management believes they provide useful information for investors, please refer to the “Reconciliation of operating results to Swiss GAAP” on pages 32 – 36.

Private Banking

In the third quarter of 2003, Private Banking reported a segment profit of CHF 519 million, an increase of 5% versus the previous quarter and 79% compared with the corresponding period of the previous year. Though the third quarter usually shows seasonal weakness, operating income increased 3%, to CHF 1.6 billion, versus the previous quarter. Compared with the third quarter of 2002, operating income rose 17%. Main drivers for this significant improvement since 2002 were higher commission and service fee income as a result of the higher average asset base and increased client activity.

Operating expenses in the third quarter of 2003 decreased by CHF 33 million, or 4%, to CHF 819 million quarter-on-quarter, and were down CHF 41 million, or 5%, compared with the corresponding period of 2002, in line with headcount development. In the third quarter of 2003, the cost/income ratio improved for the sixth consecutive quarter, decreasing 4.0 percentage points to 55.1%. The gross margin decreased to 125 bp in the third quarter of 2003, compared to 128 bp in the previous quarter, and increased 13 bp compared to 112 bp in the third quarter of 2002. The decrease in the third quarter of 2003 versus the previous quarter was mainly due to the higher average underlying asset base.

Net new assets more than doubled in the third quarter of 2003 to CHF 8.4 billion, compared to net inflows of CHF 3.8 billion in the second quarter of 2003. Assets under management were CHF 505.1 billion as of September 30, 2003, which reflects an increase of CHF 11.3 billion, or 2.3%, from June 30, 2003, and of CHF 39.4 billion, or 8.5%, versus December 31, 2002. Asian and European Private Banking again achieved good net new asset growth.

Corporate & Retail Banking

Corporate & Retail Banking reported a segment profit of CHF 169 million in the third quarter of 2003. The segment profit increased 8% versus the previous quarter and 54% compared with the corresponding period of the previous year. Operating income decreased slightly quarter-on-quarter, down 2% to CHF 789 million. This decrease is mainly due to lower other ordinary income that in the second quarter of 2003 contained realized gains from the recovery portfolio. Compared with the third quarter of 2002, Corporate & Retail Banking reported almost flat operating income. The net interest margin was 215 bp in the third quarter of 2003, corresponding to an increase of 3 bp from 212 bp in the previous quarter.

Operating expenses decreased CHF 20 million, or 4%, to CHF 483 million in the third quarter of 2003 versus the previous quarter, due mainly to lower personnel expenses in line with headcount development. Compared with the corresponding period of the previous year, operating expenses decreased CHF 56 million, or 10%, due to a reduction of both other operating expenses and personnel expenses.

In the third quarter of 2003, the cost/income ratio improved further to 64.4%, compared to 65.8% in the previous quarter and 72.8% in the third quarter of 2002. In the third quarter of 2003, the actual credit-related provisions recorded were CHF 24 million above the statistical valuation adjustments, but were CHF 20 million below the statistical valuation adjustments for the first nine months of 2003. The actual net credit-related valuation allowances and provisions in the third quarter of 2003 amounted to CHF 84 million and CHF 173 million for the first nine months of 2003. Impaired loans were further reduced by CHF 0.6 billion to CHF 5.0 billion in the third quarter of 2003 compared to June 30, 2003. The return on average allocated capital increased from 12.9% in the second quarter to 13.6% in the third quarter of 2003.

Net new assets of CHF 1.8 billion were recorded in the third quarter of 2003, compared to a net asset inflow of CHF 0.5 billion in the previous quarter. Assets under management were CHF 69.4 billion as of September 30, 2003, which reflects an increase of CHF 2.6 billion, or 3.9%, from June 30, 2003, and a decrease of 0.9 billion, or 1.3%, versus December 31, 2002.

Life & Pensions

In the first nine months of 2003, Life & Pensions reported a segment profit of CHF 354 million, representing a significant improvement from the loss of CHF 1.5 billion in the corresponding period of the previous year. In the third quarter of 2003, the segment profit amounted to CHF 126 million, including an after-tax gain of CHF 57 million from the divestiture of the Italian operations.

Life & Pensions reported a reduction in gross premiums written of 10%, or CHF 1.5 billion, to CHF 13.3 billion in the first nine months of 2003, compared with the same period of 2002. Adjusted for acquisitions, divestitures and exchange rate impacts, gross premiums written decreased 5%. The decline in reported gross premiums written in the first nine months of 2003 was primarily due to Life & Pensions’ ongoing selective underwriting policy and strong reported single premium growth during the first nine months of the previous year. Included in the gross premiums written for the first nine months of 2003 are premiums of the divested Winterthur Italy of CHF 692 million. Net new assets in the first nine months of 2003 amounted to CHF 2.0 billion.

In the first nine months of 2003, administration costs decreased 18%, or CHF 192 million, to CHF 862 million, compared with the corresponding period of the previous year. The expense ratio decreased 0.3 percentage points in the first nine months of 2003 to 10.6%, compared to 10.9% in the corresponding period of the previous year. Total expenses in the third quarter of 2003 were affected by additional amortization and write-downs of deferred acquisition costs of CHF 201 million, with a net impact of CHF 75 million on the segment result, recognized due to the lowered expectations for long-term investment returns.

Investment performance improved CHF 2.7 billion to CHF 3.8 billion in the first nine months of 2003, compared with the corresponding period of the previous year, primarily due to a significant decrease in equity impairments and realized losses. Reflecting the improved investment performance in the first nine months of 2003, the total return on invested assets amounted to 5.0%, compared to 1.5% in the corresponding period of 2002. Current income was 4.0% and realized gains/losses and other income/expenses were 1.0% in the first nine months of 2003.

Insurance

In the first nine months of 2003, Insurance reported a segment profit of CHF 1.2 billion compared to a segment loss of CHF 1.0 billion in the corresponding period of the previous year. The strong recovery of the Insurance segment in the first nine months of 2003 was mainly driven by divestiture-related gains and a significant improvement in investment performance, as well as an improvement in its underwriting result, due mainly to the implementation of tariff increases and a continued strict underwriting policy.

In the third quarter of 2003, the segment profit amounted to CHF 991 million, including an after-tax gain of CHF 1.3 billion, net of related provisions, from the divestiture of its US subsidiary Republic Financial Services, Churchill Insurance Group in the UK and Winterthur Italy. In addition, certain provisions of CHF 383 million after tax related to the current and former international business portfolio were recorded in the third quarter.

In the first nine months of 2003, Insurance’s net premiums earned increased CHF 205 million, or 2%, to CHF 11.9 billion compared with the corresponding period of the previous year. Adjusted for acquisitions, divestitures and exchange rate impacts, net premiums earned increased 8%, primarily due to tariff increases across all major markets. Included in the net premiums earned in the first nine months of 2003 are premiums of the three divested Winterthur operations of CHF 4.5 billion.

Insurance improved its net underwriting result before dividends to policyholders by CHF 218 million in the first nine months of 2003, reflecting a combined ratio improvement of 1.9 percentage points to 101.6% in the first nine months of 2003, compared to 103.5% in the first nine months of the previous year. This improvement resulted from a decrease in the claims ratio of 1.5 percentage points to 73.2% in the first nine months of 2003 versus the corresponding period of the previous year, mainly reflecting benefits from improved pricing and continued streamlining of the business portfolio. The reported combined ratio of 103.6% in the third quarter of 2003 includes CHF 117 million of certain provisions related to the current and former international business portfolio, which corresponds to 3.1 percentage points in the combined ratio.

Administration costs decreased 8%, or CHF 123 million, to CHF 1.4 billion in the first nine months of 2003 compared with the corresponding period of the previous year, despite premium growth, reflecting continued progress in ongoing efficiency initiatives. Compared with the corresponding period of the previous year, the expense ratio improved 0.4% to 28.4% in the first nine months of 2003, with a reduction in administration costs offset by higher policy acquisition costs.

In the first nine months of 2003, Insurance reported net investment income of CHF 952 million versus a net investment loss of CHF 69 million in the corresponding period of the previous year, primarily due to a significant decrease in equity impairments and realized losses. Reflecting the improved investment performance in the first nine months of 2003, the total return on invested assets amounted to 3.8%, compared to –0.3% in the corresponding period of 2002. Current income was 3.9% and realized gains/losses and other income/expenses were –0.1% in the first nine months of 2003.

Credit Suisse Financial Services business unit income statement – operating 1)
								Change		Change						Change
								in % from		in % from						in % from
												9 months
in CHF m		3Q2003		2Q2003		3Q2002		2Q2003		3Q2002		2003		2002		2002
Operating income 2)		4,548		3,544		2,364		28		92		11,594		8,586		35
Personnel expenses		1,385		1,434		1,486		(3)		(7)		4,232		4,500		(6)
Other operating expenses		732		744		884		(2)		(17)		2,292		2,691		(15)
Operating expenses		2,117		2,178		2,370		(3)		(11)		6,524		7,191		(9)
Gross operating profit		2,431		1,366		(6)		78		–		5,070		1,395		263
Depreciation of non-current assets		177		156		143		13		24		503		482		4
Amortization of Present Value of Future Profits (PVFP)		102		38		119		168		(14)		192		205		(6)
Valuation adjustments, provisions and losses		90		90		91		0		(1)		261		285		(8)
Net operating profit/(loss) before extraordinary items, acquisition-related costs, exceptional items and taxes		2,062		1,082		(359)		91		–		4,114		423		–
Extraordinary income/(expenses), net		3		8		6		(63)		(50)		18		24		(25)
Taxes 3) 4)		(260)		(223)		(689)		17		(62)		(742)		(1,192)		(38)
Net operating profit/(loss) before acquisition-related costs, exceptional items and minority interests		1,805		867		(1,042)		108		–		3,390		(745)		–
Amortization of acquired intangible assets and goodwill		(25)		(27)		(27)		(7)		(7)		(77)		(102)		(25)
Exceptional items		0		0		(119)		–		(100)		0		(119)		(100)
Tax impact		1		0		1		–		0		2		2		0
Business unit result before minority interests		1,781		840		(1,187)		112		–		3,315		(964)		–
Minority interests		8		(10)		17		–		(53)		(10)		100		–
Business unit result 5)		1,789		830		(1,170)		116		–		3,305		(864)		–
Increased/(decreased) credit-related valuation adjustments, net of tax 6)		11		(21)		24		–		(54)		(28)		27		–
Net profit/(loss)		1,778		851		(1,194)		109		–		3,333		(891)		–
Reconciliation to net operating profit/(loss)
Business unit result		1,789		830		(1,170)		116		–		3,305		(864)		–
Amortization of acquired intangible assets and goodwill, net of tax		24		27		26		(11)		(8)		75		80	7)	(6)
Exceptional items, net of tax		0		0		119		–		(100)		0		119		(100)
Net operating profit/(loss)		1,813		857		(1,025)		112		–		3,380		(665)		–
1) Comparative figures have been restated to reflect the transfer of the securities and treasury execution platform transactions of Credit Suisse First Boston in Switzerland to Credit Suisse Financial Services and the transfer of Credit Suisse First Boston's Private Client Services UK business from CSFB Financial Services to Private Banking. The operating basis business unit results reflect the results of the separate segments comprising the business unit. Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill, and exceptional items, not allocated to the segments are included in the business unit results. Certain other items, including credit-related valuation adjustments resulting from the difference between the statistical and actual credit provisions and gains/losses from sales of investments within the insurance business are presented in the operating basis business unit results based on the Group’s segment reporting principles. For a reconciliation and a discussion of the material reconciling items, please refer to “Reconciliation of operating results to Swiss GAAP”.
2) For the purpose of the consolidated financial statements, operating income for the insurance business is defined as net premiums earned, less claims incurred and change in technical provisions and expenses for processing claims, less commissions, plus net investment income from the insurance business.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. The retroactive application of this change in accounting principle would have resulted in taxes for 3Q2002 and for the 9 months 2002 of CHF –590 m and CHF –875 m, respectively.
4) Excluding tax impact on amortization of acquired intangible assets and goodwill.
5) Represents net profit/(loss) excluding credit-related valuation adjustments resulting from the difference between the statistical and actual credit provisions, net of tax.
6) Increased/(decreased) credit-related valuation adjustments before tax of CHF 14 m, CHF –27 m, CHF 31 m, CHF –37 m and CHF 35 m for 3Q2003, 2Q2003, 3Q2002, 9 months 2003 and 9 months 2002, respectively.
7) Excluding a CHF 20 m write-off relating to a participation.

Credit Suisse Financial Services business unit key information 1)
								9 months
		3Q2003		2Q2003		3Q2002		2003		2002
Cost/income ratio 2)		70.7%		66.9%		110.0%		68.8%		92.3%
Cost/income ratio – operating 3) 4)		50.4%		65.9%		106.3%		60.6%		89.4%
Cost/income ratio – operating, banking 3)		58.2%		61.4%		70.9%		61.5%		64.6%
Return on average allocated capital 2)		49.2%		25.8%		(39.4%)		32.9%		(10.6%)
Return on average allocated capital – operating 3)		50.2%		26.0%		(33.9%)		33.3%		(8.2%)
Average allocated capital in CHF m		14,392		13,326		12,286		13,566		12,432
Growth in assets under management		0.5%		7.0%		(3.8%)		5.4%		(8.3%)
of which net new assets		1.3%		0.7%		0.2%		2.2%		2.6%
of which market movement and structural effects		1.1%		6.3%		(4.1%)		5.3%		(10.6%)
of which acquisitions/(divestitures)		(1.9%)		(0.1%)		0.1%		(2.1%)		(0.3%)
of which discretionary		(1.3%)		2.6%		(0.6%)		0.8%		(1.3%)
						30.09.03		30.06.03		31.12.02
Assets under management in CHF bn						713.9		710.2		677.5
Number of employees (full-time equivalents)						41,834		53,069		54,378
1) Comparative figures have been restated to reflect the transfer of the securities and treasury execution platform transactions of Credit Suisse First Boston in Switzerland to Credit Suisse Financial Services and the transfer of Credit Suisse First Boston's Private Client Services UK business from CSFB Financial Services to Private Banking.
2) Based on the business unit results on a Swiss GAAP basis.
3) Based on the operating basis business unit results, which exclude certain acquisition-related costs and exceptional items not allocated to the segments and reflect certain reclassifications discussed in the “Reconciliation of operating results to Swiss GAAP”.
4) Excluding amortization of PVFP from the insurance business within Credit Suisse Financial Services.

Overview of business unit Credit Suisse Financial Services – operating 1)
										Credit
				Corporate						Suisse
		Private		& Retail		Life &				Financial
3Q2003, in CHF m		Banking		Banking		Pensions		Insurance		Services
Operating income 2)		1,571		789		599		1,589		4,548
Personnel expenses		560		302		182		341		1,385
Other operating expenses		259		181		106		186		732
Operating expenses		819		483		288		527		2,117
Gross operating profit		752		306		311		1,062		2,431
Depreciation of non-current assets		47		25		60		45		177
Amortization of Present Value of Future Profits (PVFP)		–		–		101		1		102
Valuation adjustments, provisions and losses		25		65		–		–		90
Net operating profit before extraordinary items, acquisition-related costs and taxes		680		216		150		1,016		2,062
Extraordinary income/(expenses), net		3		0		0		0		3
Taxes 3)		(164)		(47)		(24)		(25)		(260)
Net operating profit before acquisition-related costs and minority interests		519		169		126		991		1,805
Amortization of acquired intangible assets and goodwill										(25)
Tax impact										1
Business unit result before minority interests										1,781
Minority interests										8
Business unit result 4)										1,789
Other data:
Average allocated capital 5)		2,769		4,975		6,649				14,392
1) The operating basis business unit results reflect the results of the separate segments comprising the business unit. Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill, not allocated to the segments are included in the business unit results. Certain other items, including credit-related valuation adjustments resulting from the difference between the statistical and actual credit provisions and gains/losses from sales of investments within the insurance business are presented in the operating basis business unit results based on the Group’s segment reporting principles. For a reconciliation and a discussion of the material reconciling items, please refer to “Reconciliation of operating results to Swiss GAAP”.
2) Operating income for the insurance business is defined as net premiums earned, less claims incurred and change in technical provisions and expenses for processing claims, less commissions, plus net investment income from the insurance business. Gains or losses related to divestitures and sales of investments within the insurance business are recorded as operating income at the business unit level and reclassified to extraordinary income/(expenses) in the consolidated financial statements in accordance with Swiss GAAP.
3) Excluding tax impact on amortization of acquired intangible assets and goodwill.
4) Represents net profit excluding credit-related valuation adjustments resulting from the difference between the statistical and actual credit provisions.
5) Amount relating to Life & Pensions and Insurance segments represents the average shareholders' equity of “Winterthur” Swiss Insurance Company.

Private Banking income statement 1)
								Change		Change						Change
								in % from		in % from						in % from
												9 months
in CHF m		3Q2003		2Q2003		3Q2002		2Q2003		3Q2002		2003		2002		2002
Net interest income		334		365		326		(8)		2		1,025		1,039		(1)
Net commission and service fee income		1,038		986		934		5		11		2,932		3,203		(8)
Net trading income		188		159		72		18		161		503		416		21
Other ordinary income		11		9		14		22		(21)		29		47		(38)
Operating income		1,571		1,519		1,346		3		17		4,489		4,705		(5)
Personnel expenses		560		577		543		(3)		3		1,681		1,730		(3)
Other operating expenses		259		275		317		(6)		(18)		820		981		(16)
Operating expenses		819		852		860		(4)		(5)		2,501		2,711		(8)
Gross operating profit		752		667		486		13		55		1,988		1,994		(0)
Depreciation of non-current assets		47		46		79		2		(41)		150		182		(18)
Valuation adjustments, provisions and losses 2)		25		19		17		32		47		48		51		(6)
Net operating profit before extraordinary items, exceptional items and taxes		680		602		390		13		74		1,790		1,761		2
Extraordinary income/(expenses), net		3		7		2		(57)		50		17		21		(19)
Taxes 3)		(164)		(117)		(102)		40		61		(401)		(400)		0
Net operating profit before exceptional items and minority interests (segment result)		519		492		290		5		79		1,406		1,382		2
Other data:
Increased/(decreased) credit-related valuation adjustments 2)		(10)		(7)		17		43		–		(17)		10		–
1) Comparative figures have been restated to reflect the transfer of the securities and treasury execution platform transactions of Credit Suisse First Boston in Switzerland to Credit Suisse Financial Services and the transfer of Credit Suisse First Boston's Private Client Services UK business from CSFB Financial Services to Private Banking. Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill, and exceptional items not allocated to the segments are included in the business unit results.
2) Increased/(decreased) credit-related valuation adjustments resulting from the difference between the statistical and actual credit provisions.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. The retroactive application of this change in accounting principle would have resulted in taxes for 3Q2002 and for the 9 months 2002 of CHF –123 m and CHF –398 m, respectively.

Private Banking balance sheet information 1)
								Change		Change
								in % from		in % from
in CHF m		30.09.03		30.06.03		31.12.02		30.06.03		31.12.02
Total assets		183,698		175,451		171,126		5		7
Due from customers		32,548		31,958		36,164		2		(10)
Mortgages		25,695		24,527		22,935		5		12
1) Comparative figures have been restated to reflect the transfer of the securities and treasury execution platform transactions of Credit Suisse First Boston in Switzerland to Credit Suisse Financial Services and the transfer of Credit Suisse First Boston's Private Client Services UK business from CSFB Financial Services to Private Banking.

Private Banking key information 1)
								9 months
		3Q2003		2Q2003		3Q2002		2003		2002
Cost/income ratio 2)		55.1%		59.1%		69.8%		59.1%		61.5%
Average allocated capital in CHF m		2,769		2,671		2,536		2,657		2,507
Pre-tax margin 2)		43.5%		40.1%		29.1%		40.3%		37.9%
Fee income/operating income		66.1%		64.9%		69.4%		65.3%		68.1%
Net new assets in CHF bn		8.4		3.8		3.4		13.7		18.2
Growth in assets under management		2.3%		8.1%		(4.4%)		8.5%		(9.3%)
of which net new assets		1.7%		0.8%		0.7%		2.9%		3.5%
of which market movement and structural effects		0.6%		7.2%		(5.1%)		5.5%		(12.8%)
Gross margin 3)		124.8 bp		127.9 bp		111.8 bp		124.8 bp		123.7 bp
of which asset-driven		78.6 bp		81.5 bp		79.7 bp		80.2 bp		82.0 bp
of which transaction-driven		42.2 bp		42.3 bp		27.5 bp		40.5 bp		37.0 bp
of which other		4.0 bp		4.1 bp		4.6 bp		4.1 bp		4.7 bp
Net margin 4)		41.2 bp		41.4 bp		24.1 bp		39.1 bp		36.3 bp
						30.09.03		30.06.03		31.12.02
Assets under management in CHF bn						505.1		493.8		465.7
Number of employees (full-time equivalents)						12,032		12,318		12,967
1) Comparative figures have been restated to reflect the transfer of the securities and treasury execution platform transactions of Credit Suisse First Boston in Switzerland to Credit Suisse Financial Services and the transfer of Credit Suisse First Boston's Private Client Services UK business from CSFB Financial Services to Private Banking.
2) Based on the segment results, which exclude certain acquisition-related costs and exceptional items not allocated to the segment.
3) Operating income/average assets under management.
4) Net operating profit before exceptional items and minority interests (segment result)/average assets under management.

Corporate & Retail Banking income statement 1)
								Change		Change						Change
								in % from		in % from						in % from
												9 months
in CHF m		3Q2003		2Q2003		3Q2002		2Q2003		3Q2002		2003		2002		2002
Net interest income		530		519		538		2		(1)		1,556		1,615		(4)
Net commission and service fee income		165		158		177		4		(7)		485		547		(11)
Net trading income		73		80		69		(9)		6		224		212		6
Other ordinary income		21		46		0		(54)		–		81		38		113
Operating income		789		803		784