CSG - SEC Report

 

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

Dated March 31, 2004

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of March 31, 2004

Commission File Number 001-15244

CREDIT SUISSE GROUP
(Translation of registrant's name into English)

Paradeplatz 8, P.O. Box 1, CH-8070 Zurich, Switzerland
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F        Form 40-F  

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):       

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):       

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes        No  

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-       

 


 

 

CORRECTED Q4








AND FULL-YEAR 2003








FINANCIAL REPORT


CORRECTED
AND FULL-YEAR
FINANCIAL REPORT
CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q4/2003
CREDIT SUISSE GROUP
RISK MANAGEMENT
CREDIT SUISSE FINANCIAL SERVICES
CREDIT SUISSE FIRST BOSTON
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
CONSOLIDATED RESULTS | CREDIT SUISSE GROUP
INFORMATION FOR INVESTORS


Cautionary statement regarding forward-looking information

This 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 Report contains 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.

Credit Suisse Group is correcting its fourth quarter and full-year 2003 net profit reported under Swiss GAAP from CHF 1.2 billion to CHF 1.0 billion, and from CHF 5.2 billion to CHF 5.0 billion, respectively. The correction is a result of an error in the input data used for the fourth quarter 2003 accounts of DBV-Winterthur in Germany.

In connection with the preparation for its first quarter 2004 closing, DBV-Winterthur – a German subsidiary of Winterthur Group which forms part of Credit Suisse Financial Services – identified, through its internal processes, an error in the input data used for the fourth quarter 2003 accounts in its life and health businesses. The error occurred when DBV-Winterthur, in the fourth quarter of 2003, adopted a refinement in the methodology for calculating future dividends to policyholders (the ‘deferred bonus reserve’ component) and inadvertently included an item in the input data which should not have been considered under the refined method. The error does not affect DBV-Winterthur’s local statutory results nor its current or future obligations to policyholders.

As a result of correcting the error, the segment profit before minority interests for the Life & Pensions and Insurance segments was reduced from CHF 369 million to CHF 124 million and from CHF 153 million to CHF 105 million, respectively, for the fourth quarter of 2003. For the full year 2003, the segment profit before minority interests for the Life & Pensions and Insurance segments was reduced from CHF 723 million to CHF 478 million, and from CHF 1,338 million to CHF 1,290 million, respectively.

Credit Suisse Group’s net profit reported under Swiss GAAP for the fourth quarter and the full year 2003 was reduced from CHF 1,166 million to CHF 956 million, and from CHF 5,209 million to CHF 4,999 million, respectively.

This Report amends and replaces Credit Suisse Group’s Quarterly Report Q4 2003, which was published on February 12, 2004, and the financial statements and other financial information contained herein supersede the financial statements and other financial information contained in that Quarterly Report, which are being withdrawn. For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q4/2003


 Consolidated income statement          
    ChangeChange  Change
    in % fromin % from  in % from
     12 months 
in CHF m4Q20033Q20034Q20023Q20034Q2002200320022002
Operating income5,2186,5316,395(20)(18)26,32228,038(6)
Gross operating profit7952,1441,284(63)(38)7,4214,50965
Net profit/(loss)9562,045(950)(53)–4,999(3,309)–


 Return on equity          
    ChangeChange  Change
    in % fromin % from  in % from
     12 months 
in %4Q20033Q20034Q20023Q20034Q2002200320022002
Return on equity12.026.3(13.0)(54)–16.6(10.0)–


 Consolidated balance sheet       
    ChangeChange
    in % fromin % from
in CHF m31.12.0330.09.0331.12.0230.09.0331.12.02
Total assets962,164994,555955,656(3)1
Shareholders' equity34,69234,87331,394(1)11
Minority interests in shareholders' equity2,9562,9712,878(1)3


 Capital data       
    ChangeChange
    in % fromin % from
in CHF m31.12.0330.09.0331.12.0230.09.0331.12.02
BIS risk-weighted assets 190,761197,412196,486(3)(3)
BIS tier 1 capital22,28721,90117,613227
   of which non-cumulative perpetual preferred securities 2,1692,1842,162(1)0
BIS total capital33,20732,01028,311417


 Capital ratios     
in % 31.12.0330.09.0331.12.02
BIS tier 1 ratioCredit Suisse 8.27.67.4
 Credit Suisse First Boston 1)13.612.210.3
 Credit Suisse Group 2)11.711.19.0
BIS total capital ratio Credit Suisse Group17.416.214.4


 Assets under management/client assets       
    ChangeChange
    in % fromin % from
in CHF bn31.12.0330.09.0331.12.0230.09.0331.12.02
Advisory assets under management609.6615.1577.9(1)5
Discretionary assets under management589.8584.1582.111
Total assets under management1,199.41,199.21,160.003
Client assets 1,343.31,299.41,757.93(24)


 Net new assets          
    ChangeChange  Change
    in % fromin % from  in % from
     12 months 
in CHF bn4Q20033Q20034Q20023Q20034Q2002200320022002
Net new assets2.94.0(6.3)(28)–4.8(1.4)–
1) Ratio is based on a tier 1 capital of CHF 12.1 bn (30.09.03: CHF 12.1 bn; 31.12.02: CHF 10.6 bn), of which non-cumulative perpetual preferred securities is CHF 1.0 bn (30.09.03: CHF 1.0 bn; 31.12.02: CHF 1.0 bn).
2) Ratio is based on a tier 1 capital of CHF 22.3 bn (30.09.03: CHF 21.9 bn; 31.12.02: CHF 17.6 bn), of which non-cumulative perpetual preferred securities is CHF 2.2 bn (30.09.03: CHF 2.2 bn; 31.12.02: CHF 2.2 bn).

For complete consolidated financial statements and notes please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


 Number of employees (full-time equivalents)       
      ChangeChange
      in % fromin % from
  31.12.0330.09.0331.12.0230.09.0331.12.02
Switzerlandbanking19,66120,04221,270(2)(8)
 insurance6,4266,6497,063(3)(9)
Outside Switzerlandbanking20,31020,17825,0571(19)
 insurance14,44014,46325,0670(42)
Total employees Credit Suisse Group60,83761,33278,457(1)(22)


 Share data      
    ChangeChange
    in % fromin % from
 31.12.0330.09.0331.12.0230.09.0331.12.02
Shares issued 1,195,005,9141,194,682,3301,189,891,72000
To be issued upon conversion of MCS 1)40,413,83840,413,83840,413,83800
Own shares, net 2)(21,220,018)––––
Shares outstanding 1,214,199,7341,235,096,1681,230,305,558(2)(1)
Share price in CHF 45.2542.2530.00751
Market capitalization in CHF m54,94352,18336,909549
Book value per share in CHF26.1425.8323.18113
1) Maximum number of shares related to Mandatory Convertible Securities (MCS) issued by Credit Suisse Group Finance (Guernsey) Ltd. in December 2002.
2) Reflects applied mandatory changes in Swiss Federal Banking Commission guidelines.


 Share price          
    ChangeChange  Change
    in % fromin % from  in % from
     12 months 
in CHF 4Q20033Q20034Q20023Q20034Q2002200320022002
High (closing price)48.7048.6535.7003648.7073.60(34)
Low (closing price)42.1034.7520.602110420.7020.600


 Calculation of earnings per share (EPS)          
    ChangeChange  Change
    in % fromin % from  in % from
     12 months 
 4Q20033Q20034Q20023Q20034Q2002200320022002
Net profit/(loss) in CHF m9562,045(950)(53)–4,999(3,309)–
Diluted net profit/(loss) in CHF m9562,045(950)(53)–4,999(3,309)–
Weighted average shares outstanding1,235,316,2851,230,710,9751,193,153,538041,209,297,2902)1,190,206,2071)2
Dilutive impact 24,736,57219,673,44903)26–31,562,9452)03)–
Weighted average shares, diluted1,260,052,8571,250,384,4241,193,153,538161,240,860,2352)1,190,206,2074
Basic earnings per share in CHF0.771.66(0.80)(54)–4.13(2.78)–
Diluted earnings per share in CHF0.761.64(0.80)(54)–4.03(2.78)–
1) Adjusted for weighted average shares repurchased.
2) Reflects in 4Q2003 applied mandatory changes in Swiss Federal Banking Commission guidelines.
3) The calculation for the diluted loss per share 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.





For complete consolidated financial statements and notes please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


CREDIT SUISSE GROUP


 Overview of Credit Suisse Group 1)            
Credit Suisse Financial ServicesCredit Suisse First BostonCorporate CenterCredit Suisse Group
in CHF m4Q20033Q20034Q20024Q20033Q20034Q20024Q20033Q20034Q20024Q20033Q20034Q2002
Operating income2,3243,3873,6282,9533,1133,082(59)31(315)5,2186,5316,395
Personnel expenses1,2021,3851,4471,7851,6811,9335559843,0423,1253,464
Other operating expenses775732933612594858(6)(64)(144)1,3811,2621,647
Operating expenses1,9772,1172,3802,3972,2752,79149(5)(60)4,4234,3875,111
Gross operating profit3471,2701,248556838291(108)36(255)7952,1441,284
Depreciation of non-current assets 2)2772793351621251558267144521471634
Amortization of acquired intangible assets and goodwill252592472211308(3)23494238403
Valuation adjustments, provisions and losses232104190481111,977202572822152,424
Profit/(loss) before extraordinary items, cumulative effect of change in accounting principle and taxes (187)862631(126)391(2,149)(189)(33)(659)(502)1,220(2,177)
Extraordinary income/(expenses), net 831,164(38)16622204321872921,168369
Cumulative effect of change in accounting principle1026631802540003190520
Taxes 3)846(256)(290)(49)(65)467634141860(317)318
Net profit/(loss) before minority interests 7431,770569309328(1,208)(83)(27)(331)9692,071(970)
Minority interests24851(19)(20)(19)(18)(14)(12)(13)(26)20
Net profit/(loss)7671,778620290308(1,227)(101)(41)(343)9562,045(950)
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”. In 4Q2003 Credit Suisse Group applied mandatory changes in Swiss Federal Banking Commission guidelines. Prior periods are not required to be adjusted.
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 4Q2002 for Credit Suisse Financial Services of CHF –607 m, for Credit Suisse First Boston of CHF 269 m, and for Credit Suisse Group of CHF –197 m.

In the “Overview of Credit Suisse Group”, the business unit results are presented in accordance with Swiss GAAP. Elsewhere in these corrected financial statements, 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”.


 Impact on income statement from mandatory Swiss GAAP changes     
 CreditCredit  
 SuisseSuisseCor- 
 FinancialFirstporateTotal
4Q2003, in CHF mServicesBostonCenterchanges
Operating income6(199)(106)(299)
Personnel expenses0088
Valuation adjustments, provisions and losses01970197
Cumulative effect of change in accounting principle13180319
Taxes(2)(7)5(4)
Net profit/(loss)5(85)(109)(189)

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


 Assets under management/client assets  1)     
    ChangeChange
    in % fromin % from
in CHF bn31.12.0330.09.0331.12.0230.09.0331.12.02
Credit Suisse Financial Services    
   Private Banking     
   Assets under management 511.7505.1465.71.39.9
      of which discretionary 133.0129.2121.52.99.5
   Client assets 540.7532.3494.81.69.3
   Corporate & Retail Banking     
   Assets under management 70.069.470.30.9(0.4)
   Client assets 95.290.386.95.49.6
   Life & Pensions     
   Assets under management (discretionary) 113.3112.3110.80.92.3
   Client assets 113.3112.3110.80.92.3
   Insurance     
   Assets under management (discretionary) 25.827.130.7(4.8)(16.0)
   Client assets 25.827.130.7(4.8)(16.0)
Credit Suisse Financial Services
Assets under management720.8713.9677.51.06.4
  of which discretionary 273.3269.8264.21.33.4
Client assets775.0762.0723.21.77.2
Credit Suisse First Boston
   Institutional Securities     
   Assets under management 29.829.131.32.4(4.8)

      of which Private Equity on behalf of clients (discretionary)

19.519.720.9(1.0)(6.7)
   Client assets 101.573.383.338.521.8
   CSFB Financial Services 2)     
   Assets under management 448.8456.2451.2(1.6)(0.5)
      of which discretionary 290.4288.9289.60.50.3
   Client assets 466.8464.1951.40.6(50.9)
Credit Suisse First Boston
Assets under management478.6485.3482.5(1.4)(0.8)
   of which discretionary 316.5314.3317.90.7(0.4)
Client assets568.3537.41,034.75.7(45.1)
Credit Suisse Group
Assets under management1,199.41,199.21,160.00.03.4
   of which discretionary 589.8584.1582.11.01.3
Client assets1,343.31,299.41,757.93.4(23.6)
1) In 4Q2003 Credit Suisse Group applied mandatory changes in Swiss Federal Banking Commission guidelines. Prior periods are not required to be adjusted.
2) Excluding assets managed on behalf of other entities within Credit Suisse Group.


 Net new assets 1)        
    ChangeChange  Change
    in % fromin % from  in % from
  12 months 
in CHF bn4Q20033Q20034Q20023Q20034Q2002200320022002
Credit Suisse Financial Services       
   Private Banking 4.28.40.9(50.0)366.717.919.1(6.3)
   Corporate & Retail Banking (0.3)1.8(0.2)–50.0(1.4)(3.6)(61.1)
   Life & Pensions (2.0)(0.7)(1.3)185.753.80.03.4(100.0)
Credit Suisse Financial Services1.99.5(0.6)(80.0)–16.518.9(12.7)
Credit Suisse First Boston      
   Institutional Securities 1.30.1–––2.31.921.1
   CSFB Financial Services 2) (0.3)(5.6)(5.7)(94.6)(94.7)(14.0)(22.2)(36.9)
Credit Suisse First Boston1.0(5.5)(5.7)––(11.7)(20.3)(42.4)
Credit Suisse Group2.94.0(6.3)(27.5)–4.8(1.4)–
1) In 4Q2003 Credit Suisse Group applied mandatory changes in Swiss Federal Banking Commission guidelines. Prior periods are not required to be adjusted.
2) Excluding assets managed on behalf of other entities within Credit Suisse Group.

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


RISK MANAGEMENT


 Key position risk trends     
    Change Analysis: Brief Summary
 Change in % from 
in CHF m4Q20033Q20034Q20024Q2003 vs 3Q2003
Real Estate ERC &    
   Structured Asset ERC 1) 3,445 (14%) (20%) Lower exposures at Winterthur (revaluation of investments in Switzerland and sales) and CSFB (loans sold via securitization and lower risk in CDO portfolio)
Developed Market Fixed Income &    
   Foreign Exchange ERC 3,222 (11%) 3% Lower interest rate and foreign exchange exposures at Winterthur
Equity Investment ERC2,631(10%)(32%)Lower positions in CHF terms at CSFB due to the impact of the lower USD plus lower exposure at Winterthur (sales and hedges)
International Lending ERC2,662(2%)(31%)Lower positions in CHF terms at CSFB due to the impact of the lower USD (2% increase in USD terms)
Swiss & Retail Lending ERC1,831(4%)(13%)Write-offs of old impaired exposures at Corporate & Retail Banking
Emerging Markets ERC1,6998%(11%)Higher CSFB exposures in South Africa and Brazil
Insurance Underwriting ERC 2)6501%(31%)No material change
Simple sum across risk categories16,140(7%)(20%) 
Diversification benefit(5,405)(10%)(24%) 
Total position risk ERC10,735(6%)(18%) 

1-year, 99% 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. For a more detailed description of the Group’s ERC model, please refer to Credit Suisse Group's Annual Report 2003, which is available on the website: www.credit-suisse.com/annualreport2003. Note that comparatives have been restated for methodology changes in order to maintain consistency over time.
 
 
 
 
 
 
 
 
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.
2) Excludes ERC for discontinued businesses.


 Trading exposures (1-day, 99% VaR) 1)      
Credit SuisseCredit Suisse
Financial ServicesFirst Boston2)Credit Suisse Group3)
in CHF m4Q20033Q20034Q20033Q20034Q20033Q2003
Total VaR     
Period end13.519.158.350.456.155.1
Average12.515.051.369.352.556.3
Maximum18.719.763.1152.556.158.7
Minimum10.111.338.535.145.555.1
       
in CHF m31.12.0330.09.0331.12.0330.09.0331.12.0330.09.03
VaR by risk type     
Interest rate4.77.058.243.758.947.9
Foreign exchange2.02.215.918.316.818.6
Equity12.715.523.628.124.927.2
Commodity0.50.50.91.50.81.3
Subtotal19.925.298.691.6101.495.0
Diversification benefit(6.4)(6.1)(40.3)(41.2)(45.3)(39.9)
Total13.519.158.350.456.155.1
1) Represents 10-day VaR scaled to a 1-day holding period.
2) The CSFB VaR is calculated using the USD as the base currency. For the purpose of this disclosure, the CSFB VaR estimates are translated into CHF using the respective currency translation rates. Specifically, the average, maximum and minimum daily VaR estimates in CHF are calculated using the respective month end closing rates; the period end VaR and the risk type breakdown at period end are calculated using the CSG closing rate at quarter end.
3) 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 are based on 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.

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.




 Total credit risk exposure 1)         
Credit Suisse Financial ServicesCredit Suisse First BostonCredit Suisse Group
in CHF m31.12.0330.09.0331.12.0231.12.0330.09.0331.12.0231.12.0330.09.0331.12.02
Due from banks 2)39,28742,51233,30653,58866,78543,46247,18558,51139,469
Due from customers and mortgages 2)139,425138,060132,35350,17170,17582,395188,259206,794213,206
Total due from banks and customers, gross 2)178,712180,572165,659103,759136,960125,857235,444265,305252,675
Contingent liabilities12,08111,74312,34933,46838,14727,86240,83640,98139,104
Irrevocable commitments 3)3,9003,3412,26368,55277,67681,88472,75981,37085,333
Total banking products194,693195,656180,271205,779252,783235,603349,039387,656377,112
Loans held for sale 4)00–15,39017,028–15,39017,028–
Derivative instruments 5)4,5714,4015,01852,14054,28351,60055,82656,87754,757
Securities lending – banks 6)1,6520058,1540058,39000
Securities lending – customers 6)5,7720025,1051,7826430,8781,78264
Reverse repurchase agreements – banks 6)3,3365,2326,28385,041168,498154,53187,269169,427156,397
Reverse repurchase agreements – customers 6)1,5967,74514,52837,14741,09456,98738,67648,76771,384
Forward reverse repurchase agreements00012,53710,1157,61712,53710,1157,617
Total traded products16,92717,378 25,829270,124275,772 270,799283,576286,968 290,219
Total credit risk exposure, gross211,620213,034206,100491,293545,583506,402648,005691,652667,331
Loan valuation allowances and provisions(3,159)(3,098)(4,092)(1,494)(2,831)(3,817)(4,655)(5,932)(7,911)
Total credit risk exposure, net208,461209,936202,008489,799542,752502,585643,350685,720659,420
1) 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.
4) Effective 1Q2003, loans held for sale are presented net of the related loan valuation allowances.
5) Positive replacement values considering netting agreements.
6) In 4Q2003 Credit Suisse Group applied mandatory changes in Swiss Federal Banking Commission guidelines. Prior periods are not required to be adjusted.

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


 Total loan portfolio exposure and allowances and provisions for credit risk 1)         
Credit Suisse Financial ServicesCredit Suisse First BostonCredit Suisse Group
in CHF m31.12.0330.09.0331.12.0231.12.0330.09.0331.12.0231.12.0330.09.0331.12.02
Non-performing loans 1,9172,2913,0049961,6793,3512,9133,9706,355
Non-interest earning loans1,5171,5772,1082464372171,7632,0152,325
Total non-performing loans3,4343,8685,1121,2422,1163,5684,6765,9858,680
Restructured loans242252256327229280349281
Potential problem loans1,6411,4481,7233617301,6852,0012,1783,408
Total other impaired loans1,6651,4701,7756171,0571,9142,2812,5273,689
Total impaired loans5,0995,3386,8871,8593,1735,4826,9578,51212,369
Total due from banks and customers, gross178,712180,572165,659103,759136,960125,857235,444265,305252,675
Valuation allowance3,1233,0614,0531,3912,7273,6474,5165,7907,703
   of which on principal 2,5562,4543,2011,1842,4663,4163,7424,9216,617
   of which on interest 5676078522072612317748691,086
Total due from banks and customers, net175,589177,511161,606102,368134,233122,210230,928259,515244,972
Provisions for contingent liabilities and irrevocable commitments363739103104170139142208
Total valuation allowances and provisions3,1593,0984,0921,4942,8313,8174,6555,9327,911
Ratios         
Valuation allowances as % of total non-performing loans90.9%79.1%79.3%112.0%128.9%102.2%96.6%96.7%88.7%
Valuation allowances as % of total impaired loans61.2%57.3%58.9%74.8%85.9%66.5%64.9%68.0%62.3%


 Roll forward of loan valuation allowance 1)         
Credit Suisse Financial ServicesCredit Suisse First BostonCredit Suisse Group
in CHF m4Q20033Q20034Q20024Q20033Q20034Q20024Q20033Q20034Q2002
At beginning of period3,0613,4464,0012,7272,9283,3765,7906,3737,377
Additions4262134753711418258053531,323
Releases(202)(133)(106)(407)(105)(44)(613)(238)(151)
Net additions charged to income statement22480369(36)367811921151,172
Gross write-offs(194)(438)(313)(1,207)(239)(334)(1,400)(676)(647)
Recoveries88101122192131
Net write-offs(186)(430)(303)(1,206)(227)(313)(1,391)(655)(616)
Balances acquired/(sold)200(5)00(3)00
Provisions for interest511753319583126
Foreign currency translation impact and other 17(36)(31)(142)(41)(206)(130)(74)(256)
At end of period3,1233,0614,0531,3912,7273,6474,5165,7907,703


 Net credit-related valuation allowances and provisions 1)         
Credit Suisse Financial ServicesCredit Suisse First BostonCredit Suisse Group
in CHF m4Q20033Q20034Q20024Q20033Q20034Q20024Q20033Q20034Q2002
Net additions to loan valuation allowances22480369(36)367811921151,172
Net additions to provisions for contingent liabilities and irrevocable commitments 2)(4)6246(26)2210(19)244
Total net credit-related valuation allowances and provisions charged to income statement22086393(30)101,002192961,416
1) Credit Suisse Financial Services/Credit Suisse First Boston reflect business unit amounts. Total consolidated Credit Suisse Group amounts include adjustments and Corporate Center.
2) For 2003, net additions for valuation allowances against debt securities are no longer included in net additions to provisions for contingent liabilities and irrevocable commitments.

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


CREDIT SUISSE FINANCIAL SERVICES


 Credit Suisse Financial Services business unit income statement – operating 1)        
    ChangeChange  Change
    in % fromin % from  in % from
     12 months 
in CHF m4Q20033Q20034Q20023Q20034Q2002200320022002
Operating income 2)2,2984,5483,566(49)(36)13,89212,15214
Personnel expenses1,2021,3851,444(13)(17)5,4345,944(9)
Other operating expenses7757329346(17)3,0673,625(15)
Operating expenses1,9772,1172,378(7)(17)8,5019,569(11)
Gross operating profit3212,4311,188(87)(73)5,3912,583109
Depreciation of non-current assets169177257(5)(34)672739(9)
Amortization of Present Value of Future Profits (PVFP)1081026267430026712
Valuation adjustments, provisions and losses11390105268374390(4)
Net operating profit/(loss) before extraordinary and exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and taxes(69)2,062764––4,0451,187241
Extraordinary income/(expenses), net 109324–35412748165
Taxes 3) 4)817(260)(325)––75(1,517)–
Net operating profit/(loss) before exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and minority interests8571,805463(53)854,247(282)–
Amortization of acquired intangible assets and goodwill(25)(25)(37)0(32)(102)(139)(27)
Exceptional items00(73)–(100)0(192)(100)
Cumulative effect of change in accounting principle10266–(100)1266(100)
Tax impact0114(100)(100)216(88)
Business unit result before minority interests8331,781633(53)324,148(331)–
Minority interests24851200(53)14151(91)
Business unit result 5)8571,789684(52)254,162(180)–
Increased/(decreased) credit-related valuation adjustments, net of tax 6)901164–416291(32)
Net profit/(loss)7671,778 620(57)244,100(271)–
       
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, exceptional items and cumulative effect of change in accounting principle, 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”. In 4Q2003 Credit Suisse Group applied mandatory changes in Swiss Federal Banking Commission guidelines. Prior periods are not required to be adjusted. The impact on the results of Credit Suisse Financial Services was not considered material.
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. Gains or losses related to 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) 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 4Q2002 of CHF –642 m.
4) Excluding tax impact on amortization of acquired intangible assets and goodwill as well as exceptional items.
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 119 m, CHF 14 m, CHF 85 m, CHF 82 m and CHF 120 m for 4Q2003, 3Q2003, 4Q2002, 12 months 2003 and 12 months 2002, respectively.

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


 Reconciliation to net operating profit/(loss)       
    ChangeChange  Change
    in % fromin % from  in % from
     12 months 
in CHF m4Q20033Q20034Q20023Q20034Q2002200320022002
Business unit result8571,789684(52)254,162(180)–
Amortization of acquired intangible assets and goodwill, net of tax2524364(31)1001161)(14)
Exceptional items, net of tax0060–(100)0179(100)
Cumulative effect of change in accounting principle, net of tax(1)0(266)–(100)(1)(266)(100)
Net operating profit/(loss)8811,813514(51)714,261(151)–
1) Excluding a CHF 20 m write-off relating to a participation.


 Credit Suisse Financial Services business unit key information        
   12 months
 4Q20033Q20034Q200220032002
Cost/income ratio 1)97.0%70.7%74.8%73.9%87.2%
Cost/income ratio – operating 2) 3)93.4%50.4%73.9%66.0%84.8%
Cost/income ratio – operating, banking 2)64.9%58.2%73.1%62.4%66.5%
Return on average allocated capital 1)19.9%48.1%4)17.7%29.2%(3.4%)
Return on average allocated capital – operating 2)23.0%49.0%4)14.4%30.3%(2.4%)
Average allocated capital in CHF m14,90614,7204)12,87413,99912,519
Growth in assets under management1.0%0.5%(1.3%)6.4%(9.5%)
   of which net new assets 0.3%1.3%(0.1%)2.4%2.5%
   of which market movement and structural effects 0.7%1.1%(1.3%)6.0%(11.8%)
   of which acquisitions/(divestitures) –(1.9%)0.1%(2.1%)(0.2%)
   of which discretionary 0.5%(1.3%)(0.7%)1.3%(2.0%)
      
  31.12.0330.09.0331.12.02
Assets under management in CHF bn 720.8713.9677.5
Number of employees (full-time equivalents) 41,19541,83454,378
1) Based on the business unit results on a Swiss GAAP basis.
2) Based on the operating basis business unit results, which exclude certain acquisition-related costs, exceptional items and cumulative effect of change in accounting principle not allocated to the segments and reflect certain reclassifications discussed in the “Reconciliation of operating results to Swiss GAAP”.
3) Excluding amortization of PVFP from the insurance business within Credit Suisse Financial Services.
4) Adjusted.

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


 Overview of business unit Credit Suisse Financial Services – operating 1)     
     Credit
  Corporate  Suisse
 Private& RetailLife & Financial
4Q2003, in CHF mBankingBankingPensionsInsuranceServices
Operating income 2)1,432785(283)3642,298
Personnel expenses5123031672201,202
Other operating expenses310213125127775
Operating expenses8225162923471,977
Gross operating profit610269(575)17321
Depreciation of non-current assets68323534169
Amortization of Present Value of Future Profits (PVFP)––1062108
Valuation adjustments, provisions and losses2192––113
Net operating profit/(loss) before extraordinary items, acquisition-related costs, cumulative effect of change in accounting principle and taxes521145(716)(19)(69)
Extraordinary income/(expenses), net 108100109
Taxes 3)(121)(26)840124817
Net operating profit before acquisition-related costs, cumulative effect of change in accounting principle and minority interests508120124105857
Amortization of acquired intangible assets and goodwill    (25)
Cumulative effect of change in accounting principle    1
Tax impact    0
Business unit result before minority interests    833
Minority interests    24
Business unit result 4)    857
     
Other data:    
Average allocated capital 5)3,0934,9656,848  14,906
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, and cumulative effect of change in accounting principle 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”. In 4Q2003 Credit Suisse Group applied mandatory changes in Swiss Federal Banking Commission guidelines. Prior periods are not required to be adjusted. The impact on the results of Credit Suisse Financial Services was not considered material.
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 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.

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


 Private Banking income statement 1)        
    ChangeChange  Change
    in % fromin % from  in % from
     12 months 
in CHF m4Q20033Q20034Q20023Q20034Q2002200320022002
Net interest income326334335(2)(3)1,3511,374(2)
Net commission and service fee income 9151,038918(12)(0)3,8474,121(7)
Net trading income16718899(11)6967051530
Other ordinary income 241114118715361(13)
Operating income1,4321,5711,366(9)55,9216,071(2)
Personnel expenses512560531(9)(4)2,1932,261(3)
Other operating expenses31025935120(12)1,1301,332(15)
Operating expenses8228198820(7)3,3233,593(8)
Gross operating profit610752484(19)262,5982,4785
Depreciation of non-current assets6847584517218240(9)
Valuation adjustments, provisions and losses 2)212527(16)(22)6978(12)
Net operating profit before extraordinary and excep- tional items, acquisition-related costs, cumulative effect of change in accounting principle and taxes521680399(23)312,3112,1607
Extraordinary income/(expenses), net 108323–37012544184
Taxes 3)(121)(164)(108)(26)12(522)(508)3
Net operating profit before exceptional items, acquisition- related costs, cumulative effect of change in accounting principle and minority interests (segment result)508519314(2)621,9141,69613
Other data:      
Increased/(decreased) credit-related valuation adjustments 2)(20)(10)(9)100122(37)1–
1) Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill, exceptional items and cumulative effect of change in accounting principle 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 4Q2002 of CHF –110 m.


 Private Banking balance sheet information      
    ChangeChange
    in % fromin % from
in CHF m31.12.0330.09.0331.12.0230.09.0331.12.02
Total assets178,533183,698171,126(3)4
Due from customers32,77932,54836,1641(9)
Mortgages26,31825,69522,935215

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


 Private Banking key information      
   12 months
 4Q20033Q20034Q200220032002
Cost/income ratio 1)62.2%55.1%68.8%59.8%63.1%
Average allocated capital in CHF m3,0933,1162)2,5152,9312,507
Pre-tax margin 1)43.9%43.5%30.9%41.1%36.3%
Fee income/operating income 63.9%66.1%67.2%65.0%67.9%
Net new assets in CHF bn4.28.40.917.919.1
Growth in assets under management1.3%2.3%(1.3%)9.9%(10.5%)
   of which net new assets 0.8%1.7%0.2%3.8%3.7%
   of which market movement and structural effects 0.5%0.6%(1.6%)6.0%(14.2%)
   of which acquisitions/(divestitures) ––0.1%–0.1%
Gross margin 3)111.5 bp124.8 bp114.6 bp121.3 bp121.5 bp
   of which asset-driven 74.4 bp78.6 bp81.1 bp78.7 bp81.8 bp
   of which transaction-driven 32.7 bp42.2 bp28.6 bp38.4 bp35.0 bp
   of which other 4.4 bp4.0 bp4.9 bp4.2 bp4.7 bp
Net margin 4)39.6 bp41.2 bp26.4 bp39.2 bp34.0 bp
      
   31.12.0330.09.0331.12.02
Assets under management in CHF bn  511.7505.1465.7
Number of employees (full-time equivalents)  11,85012,03212,967
1) Based on the segment results, which exclude certain acquisition-related costs, exceptional items and cumulative effect of change in accounting principle not allocated to the segment.
2) Adjusted.
3) Operating income/average assets under management.
4) Net operating profit before exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and minority interests (segment result)/average assets under management.

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


 Corporate & Retail Banking income statement 1)        
    ChangeChange  Change
    in % fromin % from  in % from
     12 months 
in CHF m4Q20033Q20034Q20023Q20034Q2002200320022002
Net interest income514530527(3)(2)2,0702,142(3)
Net commission and service fee income 176165146721661693(5)
Net trading income817361113330527312
Other ordinary income 14211(33)–9539144
Operating income785789735(1)73,1313,147(1)
Personnel expenses3033023070(1)1,2421,250(1)
Other operating expenses21318125918(18)755943(20)
Operating expenses5164835667(9)1,9972,193(9)
Gross operating profit269306169(12)591,13495419
Depreciation of non-current assets322530287106108(2)
Valuation adjustments, provisions and losses 2)9265784218305312(2)
Net operating profit before extraordinary items, acquisition-related costs, cumulative effect of change in accounting principle and taxes14521661(33)13872353435
Extraordinary income/(expenses), net 101–024(50)
Taxes 3)(26)(47)(12)(45)117(160)(124)29
Net operating profit before acquisition-related costs, cumulative effect of change in accounting principle and minority interests (segment result)12016950(29)14056541436
Other data:      
Increased/(decreased) credit-related valuation adjustments 2)1392494479481191190
1) Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill, and cumulative effect of change in accounting principle 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 not have had an impact on the taxes reported for 4Q2002.


 Corporate & Retail Banking balance sheet information      
    ChangeChange
    in % fromin % from
in CHF m31.12.0330.09.0331.12.0230.09.0331.12.02
Total assets96,25296,42594,75702
Due from customers24,39625,31828,048(4)(13)
Mortgages59,68859,46757,16504
Due to customers in savings and investment deposits28,59028,08027,08126
Due to customers, other28,03428,72827,611(2)2

For a detailed discussion of the full-year 2003 results please refer to the Credit Suisse Group Annual Report 2003, which is posted on the Internet at www.credit-suisse.com/annualreport2003.


 Corporate & Retail Banking key information      
   12 months
 4Q20033Q20034Q200220032002
Cost/income ratio 1)69.8%64.4%81.1%67.2%73.1%
Return on average allocated capital 1)9.7%13.6%2)4.1%11.6%8.2%
Average allocated capital in CHF m4,9654,9542)4,8774,8805,036
Pre-tax margin 1)18.6%27.4%8.4%23.2%17.1%
Personnel expenses/operating income38.6%38.3%41.8%39.7%