Management Change

Credit Suisse Group also announced today that Richard E. Thornburgh will be proposed for election to the Board of Directors of Credit Suisse Group at the Annual General Meeting in April 2006. He will step down from his current positions as a Member of the Executive Boards of Credit Suisse Group and Credit Suisse First Boston and as Executive Vice Chairman of Credit Suisse First Boston at the end of the year, after 30 years of loyal and distinguished service with Credit Suisse Group.

Outlook

Credit Suisse Group expects to see higher interest rates and increased market volatility in the fourth quarter of 2005. The Group anticipates that the global economy will remain robust as growth in Asia and Europe helps offset the pressure from higher energy costs and interest rates facing US consumers. Credit Suisse Group expects that oil and other commodities will continue to experience a correction within their longer-term uptrend.

For additional information on Credit Suisse Group’s results for the third quarter of 2005, please refer to the Group’s Quarterly Report Q3 2005, as well as the Group’s slide presentation for analysts and the press, which are available on the Internet at: www.credit-suisse.com/results

Credit Suisse Group
Credit Suisse Group is a leading global financial services company headquartered in Zurich. It provides private clients and small and medium-sized companies with private banking and financial advisory services, and pension and insurance solutions from Winterthur. In the area of investment banking, it 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 in the form of American Depositary Shares (CSR) in New York. The Group employs around 62,000 staff worldwide. As of September 30, 2005, it reported assets under management of CHF 1,404.6 billion.

Page 5 of 7

Cautionary Statement Regarding Forward-Looking Information
This press release 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.

Page 6 of 7

Presentation of Credit Suisse Group’s Third Quarter 2005 Results via Webcast and Telephone Conference

Date	Wednesday, November 2, 2005
Time	10.00 CET / 09.00 GMT / 04.00 EST
Speaker	Renato Fassbind, Chief Financial Officer of Credit Suisse Group
	The presentation 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 questions during the telephone
	conference following the presentation.
Playback	Audio recording – available approximately three hours after the
	event at: www.credit-suisse.com/results
	Telephone – available approximately three hours after the event; please dial:
	Europe:	+41 91 612 4330
	UK:	+44 207 108 6233
	USA:	+1 866 416 2558
	Conference ID: 209#
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 7 of 7

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Letter to Shareholders 2005 Q3

Dear shareholders Credit Suisse Group reported net income of CHF 1,918 million in the third quarter of 2005, as our businesses benefited from increased levels of client activity and the active market environment. Our third-quarter result is a substantial improvement compared to the same period of last year, when we produced net income of CHF 1,351 million. We are confident that we can build on this performance and deliver higher returns in the future. The Group’s return on equity for the third quarter of 2005 was 20.1%, with a return on equity of 22.7% for the banking business and 11.9% for the insurance business. Basic earnings per share were CHF 1.67. Third-quarter segment results We would like to briefly present our third-quarter results in the individual banking and insurance segments in more detail. Private Banking provides high-net-worth individuals in Switzerland and in numerous other markets around the world with wealth management products and services. Private Banking reported net income of CHF 728 million in the third quarter of 2005, reflecting strong asset-based and transaction-based revenues as well as an increase in total operating expenses related partly to strategic investments in international growth markets. Net income increased by CHF 217 million, or 42%, compared to the third quarter of 2004 and by CHF 147 million, or 25%, compared to the previous quarter, supported by a favorable market environment and healthy levels of client activity. Our third-quarter result in Private Banking highlights the progress we have made in the expansion of our international business. The segment generated total net new assets of CHF 14.3 billion, with healthy asset inflows from key markets in Asia and the European onshore business. Together with the 12% increase in net revenues versus the second quarter of 2005, this development reflects Private Banking’s favorable position in launching new products, building on its excellent service and advice capabilities. Corporate & Retail Banking offers banking products and services to corporate and retail clients in Switzerland. Corporate & Retail Banking reported net income of CHF 264 million for the third quarter of 2005, representing an increase of CHF 65 million, or 33%, compared to the same period of the previous year. This result reflects strong net revenues driven by higher commissions and fees and higher trading revenues, as well as the positive impact of the ongoing favorable credit environment. The Corporate & Retail Banking segment represents a significant part of our Swiss operations. As we become a fully integrated global bank, our Swiss home market will continue to make a major contribution to our results. Institutional Securities provides securities and investment banking services to institutional, corporate and government clients worldwide. Institutional Securities improved its pre-tax margin (excluding minority interests) to 20.4% in the third quarter of 2005 and increased its net income to CHF 612 million, compared to CHF 292 million in the third quarter of 2004. This improvement reflects an increased focus on high-margin products and the generally favorable market environment. In investment banking, our advisory business has made significant progress with improved market share and rankings from 2004. Advisory fees, which include fees from mergers and acquisitions, increased significantly versus the previous quarter. Strong revenues in debt underwriting primarily reflected higher results in investment grade capital markets and leveraged finance. Leveraged finance, which combines high yield bonds and syndicated lending, continues to be a strong contributor to results and we were well positioned to benefit from a shift in issuer activity from the high yield market to the syndicated loan market. In investment grade debt, we have increased profitability, as we focused our resources on the most attractive opportunities. In equity capital markets, IPOs continue to be a high priority. They offer significant revenue synergies with other areas in investment banking, as well as creating cross-selling opportunities with Private Banking. Our expertise in this area is underscored by our leading league table ranking for global IPOs and has resulted in strong revenue growth. Key transactions for the third quarter of 2005 reflected the geographic and industry breadth of the equity franchise and included initial public offerings for RHM plc (UK food producer), Cyrela Brazil Realty S.A. (Brazilian real estate developer) and Panalpina World Transport (Holding) Ltd (Swiss provider of forwarding and logistics services) and a follow-on common stock offering for Google Inc. (US internet company). These examples demonstrate that we are successfully deploying our resources in the businesses in which we can achieve the best returns. Our equity business had a strong quarter with improved trading results, higher customer flows and continued growth in prime services. In fixed income, we experienced a satisfactory quarter with growth in leveraged finance and residential mortgage revenues. Wealth & Asset Management offers international asset management services – including a broad range of investment funds – to institutional and private investors. In addition, it provides financial advisory services to wealthy individuals and corporate clients. Wealth & Asset Management reported net income of CHF 101 million for the third quarter of 2005, an increase of 237% compared to the third quarter of 2004. This improved result reflects higher revenues across key areas. Net income decreased by 59% compared to the second quarter of 2005, which included a particularly high level of private equity gains in Alternative Capital. While our quarter-on-quarter results can be somewhat volatile due to the level of private equity gains, the trend is smoother over time. For the first nine months of 2005, net income increased 3% to CHF 481 million compared to the same period of 2004. This leads us to our insurance segments. Winterthur , Credit Suisse Group’s insurance unit, comprises two business lines. The Life & Pensions business line is a leading provider of life insurance and pension solutions for private and corporate clients. The Non-Life business line provides insurance products for private clients and small and medium-sized corporate clients. The Life & Pensions business recorded net income of CHF 96 million for the quarter, down from CHF 164 million in the third quarter of 2004. This decrease was primarily due to a change in actuarial assumptions and models. Life & Pensions achieved improvements in its technical results and investment income compared to the third quarter of 2004. The Non-Life business recorded net income of CHF 190 million in the third quarter of 2005, down slightly from net income of CHF 198 million in the same period of last year, reflecting losses relating to the unusually heavy rainfall and flooding in Switzerland. We are continuing to manage Winterthur as a financial investment and are pleased with its operating performance. Overall, the Group’s results for the third quarter demonstrate that we are making good progress against the strategic plans we have defined for our businesses. We are convinced that by creating an integrated and more focused banking business Credit Suisse Group will continue to increase its profitability and realize its full potential across the banking and insurance businesses. Our strategy to integrate the banking businesses While the business plans of our banking and insurance businesses display encouraging results in terms of future revenue growth, we are implementing a strategy that will allow us to focus even more intensively on our core strengths in investment banking, private banking and asset management. Let us briefly summarize the aim of our strategy. The integration of our banking businesses will enable us to respond effectively to the changes that our industry will face in the future. With globalization and new technologies, our clients’ requirements are growing more complex and the way we operate as a bank is changing fundamentally. We are building an integrated global bank that will allow us to benefit from these changes, to capture new opportunities in our markets and to generate sustained and profitable growth. We expect the integration of our banking businesses to create synergies for revenue growth, improve efficiency and ultimately increase shareholder value. A particular focus of our growth strategy is the expansion of our global business in order to seize growth opportunities in key international markets. In investment banking, our recent transactions in M&A and IPOs show the geographic breadth of our revenue streams, with highlights in growth regions such as Asia and Latin America. The leveraged finance business benefited from the expansion of the franchise in Europe and Asia. We have further developed our strong position in China and have gained a leadership position in M&A and IPOs in this dynamic market. We have also gained leading positions in other emerging markets such as Brazil, where our investment banking business ranks first in debt and equity issuance. In Private Banking, we are also targeting Asia, where we anticipate that wealth will increase in line with the region’s rapidly expanding economy. In the Middle East and in Eastern Europe – especially in Russia – we expect to see significant levels of wealth creation. Latin America also remains a key region for Private Banking. Its market for wealth management is expected to experience rapid growth over the coming years. We also see significant growth potential in Europe. In addition, we are building our onshore presence through the creation of hubs in key regional centers such as Dubai, as well as with the opening of local representative offices in locations such as Bangkok (Thailand), Guangzhou (China) and St. Petersburg (Russia) in 2005. We have the potential to do even better Overall, in the third quarter of 2005, Credit Suisse Group made good progress in the implementation of its strategy and we demonstrated our ability to capitalize on increased client momentum and active market conditions. While we reported satisfactory results this quarter, we know that we have the potential to do even better. We are convinced that our integration strategy will create an organization that will enable us to capture opportunities for sustainable growth. Outlook We expect to see higher interest rates and increased market volatility in the fourth quarter of 2005. We anticipate that the global economy will remain robust as growth in Asia and Europe helps offset the pressure from higher energy costs and interest rates facing US consumers. Moreover, we expect that oil and other commodities will continue to experience a correction within their longer-term uptrend. Yours sincerely Walter B. Kielholz Oswald J. Grübel Chairman of the Board of Directors Chief Executive Officer November 2005

For a detailed presentation of Credit Suisse Group’s third quarter 2005 results please refer to the quarterly report.

Segment Reporting
Net income/(loss)
									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Private Banking			728		581		511		1,994		1,857
Corporate & Retail Banking			264		277		199		815		644
Institutional Securities			612		(408)		292		744		1,044
Wealth & Asset Management			101		245		30		481		467
Life & Pensions			96		116		164		338		370
Non-Life			190		137		198		452		383
Corporate Center			(73)		(29)		(43)		(77)		(96)
Credit Suisse Group			1,918		919		1,351		4,747		4,669

Consolidated statements of income (unaudited)
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Interest and dividend income			10,445		10,123		7,621		3		37		29,382		23,257		26
Interest expense			(7,624)		(6,821)		(4,849)		12		57		(20,204)		(14,047)		44
Net interest income			2,821		3,302		2,772		(15)		2		9,178		9,210		0
Commissions and fees			3,797		3,483		3,307		9		15		10,519		10,288		2
Trading revenues			2,953		915		931		223		217		5,696		3,159		80
Realized gains/(losses) from investment securities, net			373		441		128		(15)		191		1,240		854		45
Insurance net premiums earned			4,522		4,373		4,187		3		8		16,644		16,277		2
Other revenues			1,044		1,587		610		(34)		71		3,396		2,694		26
Total noninterest revenues			12,689		10,799		9,163		18		38		37,495		33,272		13
Net revenues			15,510		14,101		11,935		10		30		46,673		42,482		10
Policyholder benefits, claims and dividends			5,681		5,111		4,308		11		32		18,897		17,017		11
Provision for credit losses			(48)		(29)		38		66		–		(113)		205		–
Total benefits, claims and credit losses			5,633		5,082		4,346		11		30		18,784		17,222		9
Insurance underwriting, acquisition and administration expenses			1,292		1,038		1,043		24		24		3,389		3,207		6
Banking compensation and benefits			3,595		3,098		2,802		16		28		9,989		9,317		7
Other expenses			2,109		3,041		2,075		(31)		2		6,941		5,894		18
Restructuring charges			0		1		13		(100)		(100)		1		77		(99)
Total operating expenses			6,996		7,178		5,933		(3)		18		20,320		18,495		10
Income from continuing operations before taxes, minority interests and cumulative effect of accounting changes			2,881		1,841		1,656		56		74		7,569		6,765		12
Income tax expense			437		213		112		105		290		1,280		1,123		14
Minority interests, net of tax			510		708		205		(28)		149		1,519		872		74
Income from continuing operations before cumulative effect of accounting changes			1,934		920		1,339		110		44		4,770		4,770		0
Income/(loss) from discontinued operations, net of tax			(16)		(1)		12		–		–		(37)		(95)		(61)
Cumulative effect of accounting changes, net of tax			0		0		0		–		–		14		(6)		–
Net income			1,918		919		1,351		109		42		4,747		4,669		2

Return on equity - Group			20.1%		9.8%		15.3%		–		–		16.9%		17.7%		–
Earnings per share in CHF
Basic earnings per share			1.67		0.82		1.16		–		–		4.16		3.98		–
Diluted earnings per share			1.63		0.79		1.15		–		–		4.05		3.91		–

Key figures
in CHF m, except where indicated			30.09.05		30.06.05		31.12.04		Change in % from 30.06.05		Change in % from 31.12.04
Assets under management in CHF bn			1,404.6		1,341.2		1,220.7		4.7		15.1
Total assets			1,326,755		1,287,169		1,089,485		3		22
Shareholders' equity			38,634		38,154		36,273		1		7
BIS tier 1 ratio			11.1%		10.9%		12.3%		–		–
BIS total capital ratio			13.9%		14.0%		16.6%		–		–
Market price per registered share in CHF			57.30		50.55		47.80		13		20
Market capitalization			62,181		55,443		53,097		12		17
Book value per share in CHF			35.60		34.79		32.65		2		9

Additional information Additional information on the Credit Suisse Group’s third quarter 2005 results can be obtained in the Quarterly Report 3/05 and the analysts’ presentation, which are available on our website at: www.credit-suisse.com/results. The Quarterly Report (English only) can be ordered at Credit Suisse, ULLM 23, Uetlibergstrasse 231, 8070 Zurich, fax: +41 44 332 7294.

Cautionary Statement Regarding Forward-Looking Information This document 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.

Credit Suisse Group Paradeplatz 8, P.O. Box 1, 8070 Zurich, Switzerland Tel. +41 44 212 1616, Fax +41 44 333 2587, www.credit-suisse.com

English 5520194

Quarterly Report 2005 Q3

Credit Suisse Group financial highlights
													9 months
in CHF m, except where indicated			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Consolidated income statement
Net revenues			15,510		14,101		11,935		10		30		46,673		42,482		10
Income from continuing operations before cumulative effect of accounting changes			1,934		920		1,339		110		44		4,770		4,770		–
Net income			1,918		919		1,351		109		42		4,747		4,669		2
Return on equity
Return on equity - Group			20.1%		9.8%		15.3%		–		–		16.9%		17.7%		–
Return on equity - Banking			22.7%		9.1%		14.2%		–		–		18.1%		19.1%		–
Return on equity - Winterthur			11.9%		11.3%		18.4%		–		–		11.7%		12.8%		–
Earnings per share
Basic earnings per share in CHF			1.67		0.82		1.16		–		–		4.16		3.98		–
Diluted earnings per share in CHF			1.63		0.79		1.15		–		–		4.05		3.91		–
Net new assets in CHF bn			19.0		16.2		4.7		–		–		50.6		29.4		–

in CHF m, except where indicated			30.09.05		30.06.05		31.12.04		Change in % from 30.06.05		Change in % from 31.12.04
Assets under management in CHF bn			1,404.6		1,341.2		1,220.7		4.7		15.1
Consolidated balance sheet
Total assets			1,326,755		1,287,169		1,089,485		3		22
Shareholders' equity			38,634		38,154		36,273		1		7
Consolidated BIS capital data
Risk-weighted assets			239,604		238,181		199,249		1		20
Tier 1 ratio			11.1%		10.9%		12.3%		–		–
Total capital ratio			13.9%		14.0%		16.6%		–		–
Number of employees
Switzerland - banking segments			20,030		19,773		19,558		1		2
Switzerland - insurance segments			5,983		5,953		6,147		1		(3)
Outside Switzerland - banking segments			23,313		22,358		21,606		4		8
Outside Switzerland - insurance segments			13,460		13,497		13,221		0		2
Number of employees (full-time equivalents)			62,786		61,581		60,532		2		4
Stock market data
Market price per registered share in CHF			57.30		50.55		47.80		13		20
Market price per American Depositary Share in USD			44.48		39.14		42.19		14		5
Market capitalization			62,181		55,443		53,097		12		17
Market capitalization in USD m			48,269		42,929		46,865		12		3
Book value per share in CHF			35.60		34.79		32.65		2		9
Shares outstanding			1,085,178,424		1,096,802,759		1,110,819,481		(1)		(2)

Cover photo: Radames Mely III , HR Analyst, and Ken Wallace, Vice President IT Applications, both at Credit Suisse Asset Management based in New York.

Quarterly Report 2005 Q3 Message from the Chief Executive Officer Dear shareholders, clients and colleagues Credit Suisse Group Factors affecting results of operations Summary of segment results Credit Suisse Group consolidated results Credit Suisse Group structure Risk Management Private Banking Corporate & Retail Banking Institutional Securities Wealth & Asset Management Life & Pensions Non-Life Investments for Life & Pensions and Non-Life Condensed consolidated financial statements – Credit Suisse Group Consolidated balance sheets (unaudited) Consolidated statements of changes in shareholders’ equity (unaudited) Comprehensive income (unaudited) Consolidated statements of cash flows (unaudited) Consolidated statements of cash flows – continued (unaudited) Summary of significant accounting policies Basis of presentation Share-based compensation NEW ACCOUNTING PRONOUNCEMENTS STANDARDS TO BE ADOPTED IN FUTURE PERIODS Segment Reporting Interest and dividend income and interest expense Trading activities Commissions and fees Loans Restructuring liabilities Accumulated other comprehensive income Earnings per share Pension Guarantees and commitments Guarantees Other commitments Variable interest entities Collateralized debt obligations Commercial paper conduits Financial intermediation Litigation Foreign currency translation rates Information for investors Enquiries

Cover photograph The renowned Swiss photographic artist Beat Streuli (born 1957) captured images of Credit Suisse Group employees at various international locations during January and February 2005. The Group’s financial publications for 2005 are illustrated with the work that resulted from this project.

Message from the Chief Executive Officer

Oswald J. Grübel Chief Executive Officer Credit Suisse Group

Dear shareholders, clients and colleagues Credit Suisse Group reported net income of CHF 1.9 billion in the third quarter of 2005, as our businesses benefited from increased levels of client activity and the active market environment. This performance reflects the progress we are making in refocusing our business. Our third-quarter result is a substantial improvement compared to the same period of last year, when we achieved net income of CHF 1.4 billion. I am confident that we can build on this performance and deliver higher returns in the future. Our work to implement our strategy and to position our company for future growth has only just begun. We will focus on our core strengths in investment banking, private banking and asset management going forward. We are building an integrated global bank to capture new opportunities in our markets and to achieve sustainable growth. We will do this by combining the strengths of our businesses and the knowledge and expertise of our people and by exploiting synergies to advance our position in the global markets. We made good progress in the third quarter. The new organization will take effect from January 1, 2006. Our third-quarter result in Private Banking highlights the progress we have made in the expansion of our international business. Private Banking generated total net new assets of CHF 14.3 billion, with healthy inflows from key markets in Asia and the European onshore business. Private Banking’s net income of CHF 728 million in the third quarter reflects strong asset-based and transaction-based revenues and an increase in total operating expenses related partly to strategic investments in international growth markets. This compares to net income of CHF 511 million in the same quarter of 2004 and to net income of CHF 581 million in the second quarter of 2005 and confirms that our Private Banking business is achieving increased growth and profitability. As we become a fully integrated global bank, our Swiss home market will continue to make a major contribution to our results. In the third quarter of this year, Corporate & Retail Banking recorded net income of CHF 264 million, an increase of 33% over the same period of last year. Strong net revenues and the ongoing favorable credit environment were the main drivers of this good performance. Institutional Securities increased its net income to CHF 612 million, compared to CHF 292 million in the third quarter of 2004. The pre-tax margin (excluding minority interests) continued to improve and stood at 20.4%. I am encouraged by these results and I am convinced that by delivering a more focused franchise, we will continue to advance this business and realize our full potential. In investment banking, our advisory business has made significant progress with improved market share and rankings from 2004. Leveraged finance continues to be a strong contributor to results and we were well positioned to benefit from a shift in issuer activity from the high yield market to the syndicated loan market. In investment grade debt, we have increased profitability, as we focused our resources on the most attractive opportunities. In equity capital markets, IPOs continue to be a high priority. They offer significant revenue synergies with other areas in investment banking, as well as creating cross-selling opportunities with Private Banking. Our expertise in this area is underscored by our leading league table ranking for global IPOs and has resulted in strong revenue growth. Our equity business had a strong quarter with improved trading results, higher customer flows and continued growth in prime services. In fixed income, we experienced a satisfactory quarter with growth in leveraged finance and residential mortgage revenues. Wealth & Asset Management recorded net income of CHF 101 million in the third quarter, compared to net income of CHF 30 million in the same quarter of 2004. This improved result reflects higher revenues across all key areas. Winterthur, our insurance business, reported a good performance in the third quarter of 2005. The Life & Pensions business reported net income of CHF 96 million for the quarter, down from CHF 164 million in the third quarter of 2004. This decrease was primarily due to a change in actuarial assumptions and models. Life & Pensions achieved improvements in its technical results and investment income compared to the third quarter of 2004. The Non-Life business recorded net income of CHF 190 million in the third quarter of 2005, down slightly from net income of CHF 198 million in the same period of last year, as the result was impacted by losses relating to the unusually heavy rainfall and flooding in Switzerland. We are continuing to manage Winterthur as a financial investment and are pleased with its operating performance. In the third quarter of 2005, Credit Suisse Group demonstrated its ability to capitalize on increased client momentum and active market conditions. While we reported satisfactory results this quarter, we know that we have the potential to do even better. I am convinced that our integration strategy will create an organization that will enable us to capture opportunities for sustainable growth. Outlook We expect to see higher interest rates and increased market volatility in the fourth quarter of 2005. We anticipate that the global economy will remain robust as growth in Asia and Europe helps offset the pressure from higher energy costs and interest rates facing US consumers. Moreover, we expect that oil and other commodities will continue to experience a correction within their longer-term uptrend. Yours sincerely Oswald J. Grübel November 2005

Credit Suisse Group Credit Suisse Group recorded net income of CHF 1,918 million in the third quarter of 2005, an increase of CHF 567 million, or 42%, from its net income of CHF 1,351 million in the third quarter of 2004. The Group’s third-quarter results reflect increased net income across all its banking segments and lower net income in the insurance segments compared to the third quarter of 2004. Factors affecting results of operations The banking segments generally benefited from favorable market conditions in the third quarter of 2005, as the usual seasonal slowdown failed to materialize. The insurance segments continued to be challenged by the sustained low interest rate environment. In the US, strong corporate earnings were partially overshadowed by increasing energy costs, rising short-term interest rates and uncertainty over the impact of the hurricanes on the US economy. As a result, the US equity markets posted modest increases during the third quarter, with lower equity trading volumes and higher volatilities. Major markets in the rest of the world appeared less impacted by the rising energy prices, with many indices showing strong increases. In Europe, both the Swiss Market Index and the Frankfurt DAX rose by approximately 10%, with higher volatility in the Swiss equity markets compared to the low levels experienced at the end of the previous quarter. The main Asian equity markets closed higher during the quarter with the most significant increases in Japan, South Korea and India. Compared to the third quarter of 2004, the Nikkei 225 market index recorded the most significant increase on indications that Japan was emerging from its economic slump. The European Central Bank and Bank of Japan continued to hold their benchmark rates steady, while the Bank of England reduced its benchmark rate. The US Federal Reserve continued to increase short-term interest rates at a measured pace, with a target rate of 3.75% at the end of the third quarter, while the yield curve continued to flatten. Credit spreads tightened during the quarter, driving renewed favorable sentiment and higher levels of capital market activity. The Swiss franc closed largely flat against the US dollar although significant volatility was seen during the quarter. The global credit environment remained favorable, with a corresponding positive impact on the Group’s provision for credit losses. The volume of mergers and acquisitions in Europe outpaced activity in the US by a wide margin in the third quarter, with unusually strong levels of activity in September as the highest deal values of the year were recorded. Seven of the ten largest announced deals were in Europe. However, US merger and acquisitions activity remained robust leading to an increase in volumes in the US. Despite concerns over economic growth and rising interest rates, global debt and equity underwriting volumes rose during the third quarter compared to the third quarter of 2004. Summary of segment results Private Banking reported net income of CHF 728 million in the third quarter of 2005, an increase of CHF 217 million, or 42%, compared to the third quarter of 2004. Strong asset-based and transaction-based revenues, driven by a favorable market environment, contributed to this result. In addition, Private Banking again reported strong net new assets of CHF 14.3 billion in the third quarter of 2005. Corporate & Retail Banking reported net income of CHF 264 million in the third quarter of 2005, an increase of CHF 65 million, or 33%, compared to the third quarter of 2004. Strong net revenues, strict cost management and an ongoing favorable credit environment were the main contributors to this result. Institutional Securities reported net income of CHF 612 million in the third quarter of 2005, an increase of CHF 320 million, or 110%, compared to the third quarter of 2004, primarily reflecting higher revenues in the trading and investment banking businesses. Wealth & Asset Management reported net income of CHF 101 million in the third quarter of 2005, an increase of CHF 71 million, or 237%, compared to the third quarter of 2004, with increased revenues in key business areas. Both Institutional Securities and Wealth & Asset Management maintained a disciplined approach to compensation expenses, with a compensation to revenue ratio for the combined segments (excluding minority interest revenues) of 51.9% in the third quarter of 2005, compared to 53.2% in the third quarter of 2004, and unchanged compared to the second quarter of 2005. Life & Pensions reported net income of CHF 96 million in the third quarter of 2005, a decrease of CHF 68 million, or 41%, compared to the third quarter of 2004, with solid technical results and business growth. Total business volume grew 13% with good contributions from traditional and unit-linked business. Net income was negatively impacted by a change in actuarial assumptions and models of CHF 61 million after tax and policyholder participations. However, this decrease was partially offset by an increase in the valuation of deferred tax assets (by decreasing the related valuation allowance) in relation to tax loss carry-forwards created in prior years. Non-Life reported net income of CHF 190 million in the third quarter of 2005, a decrease of CHF 8 million, or 4%, compared to the third quarter of 2004, with an ongoing emphasis on selective and controlled underwriting. Solid results and an increase in the valuation of deferred tax assets (by decreasing the related valuation allowance) primarily in relation to tax loss carry-forwards created in prior years, offset the negative effects of the unusually heavy rainfall and flooding in Switzerland during August 2005. Credit Suisse Group consolidated results Net revenues The Group reported net revenues of CHF 15,510 million in the third quarter of 2005, an increase of CHF 3,575 million, or 30%, compared to the third quarter of 2004. Net interest income, which includes dividend income, of CHF 2,821 million was reported in the third quarter of 2005, an increase of CHF 49 million, or 2%, compared to the third quarter of 2004. Net interest income for the insurance segments improved by CHF 65 million due to lower interest expense and increased dividend receipts as corporations declared generally higher dividends in line with economic improvements. The result was also impacted by a decrease of CHF 73 million in Institutional Securities due largely to higher short-term borrowing costs. In comparison to the second quarter of 2005, net interest income declined by CHF 481 million, or 15%, due mainly to higher dividends received by Institutional Securities and Private Banking during the second quarter of 2005. Commissions and fees rose by CHF 490 million, or 15%, to CHF 3,797 million compared to the third quarter of 2004. Institutional Securities reported an increase of CHF 266 million primarily in equity underwriting and advisory fees, due primarily to increased industry-wide activity. Private Banking’s commissions and fees increased by CHF 193 million, related mainly to higher asset-based commissions and increased brokerage volumes. Trading revenues of CHF 2,953 million increased by CHF 2,022 million, or 217%, compared to the third quarter of 2004 and by CHF 2,038 million, or 223%, compared to the second quarter of 2005. As a result of the more favorable market environment for fixed income and equity trading, Institutional Securities recorded an increase in trading revenues of CHF 1,014 million compared to the third quarter of 2004, and of CHF 1,174 million compared to the second quarter of 2005. In addition, Private Banking benefited from strong trading execution as a result of higher levels of client activity. Life & Pensions recorded an increase of CHF 825 million compared to the third quarter of 2004, reflecting primarily the market appreciation of the underlying assets backing unit-linked products which is credited to policyholder account balances. Net realized gains/(losses) from investment securities increased by CHF 245 million, or 191%, to CHF 373 million in the third quarter of 2005, due mainly to an increase in Life & Pensions. This was driven primarily by higher realizations on equity securities backing traditional life policies. Insurance net premiums earned increased by CHF 335 million, or 8%, to CHF 4,522 million, compared to the third quarter of 2004. This increase was driven primarily by a positive sales performance in Life & Pensions in the Netherlands, Spain and Japan, as well as in the Swiss group life business. Other revenues of CHF 1,044 million were reported in the third quarter of 2005, compared to CHF 610 million in the third quarter of 2004, representing an increase of CHF 434 million, or 71%. This increase was due partly to an increase in other revenues in Wealth & Asset Management, primarily from higher investment-related gains and revenues from consolidation of certain private equity funds attributable to minority interests as discussed under Minority interests below. Total benefits, claims and credit losses The Group reported a net release of provisions for credit losses of CHF 48 million in the third quarter of 2005, compared to a net expense of CHF 38 million in the third quarter of 2004, largely reflecting the ongoing favorable credit environment. Compared to the third quarter of 2004, policyholder benefits, claims and dividends increased by CHF 1,373 million, or 32%, to CHF 5,681 million. This largely reflects an increase of CHF 918 million in additional investment income credited to policyholder account balances in Life & Pensions, as discussed under trading revenues above. In addition, Life & Pensions reported an increase of CHF 86 million in policyholder benefits, which was largely in line with the development in insurance net premiums earned. Non-Life reported an increase in policyholder benefits and claims expense of CHF 136 million, reflecting a charge of CHF 92 million relating to the impact of the heavy rainfall and flooding in Switzerland. Total operating expenses The Group reported total operating expenses of CHF 6,996 million in the third quarter of 2005, an increase of CHF 1,063 million, or 18%, compared to the third quarter of 2004. This increase was driven primarily by higher banking compensation and benefits as well as an increase in insurance underwriting, acquisition and administration expenses in Life & Pensions. Compared to the second quarter of 2005, total operating expenses decreased by CHF 182 million, or 3%, with an increase in banking compensation and benefits and insurance underwriting, acquisition and administration expenses, offset by a decrease in other expenses. The decrease in other expenses reflects a charge of CHF 960 million in the second quarter of 2005 in Institutional Securities to increase the reserve for certain private litigation. Insurance underwriting, acquisition and administration expenses of CHF 1,292 million increased CHF 249 million, or 24%, compared to the third quarter of 2004 and CHF 254 million, or 24%, compared to the second quarter of 2005. The main drivers of these increases were changes in actuarial assumptions and models in Life & Pensions. Banking compensation and benefits increased by CHF 793 million, or 28%, to CHF 3,595 million in the third quarter of 2005. This reflects higher performance-related compensation in the banking segments, in line with the improved results. In addition, this increase was partly driven by a rise in headcount in both Private Banking and Institutional Securities. Other expenses amounted to CHF 2,109 million, which remained at the same level as the equivalent quarter in 2004, and decreased by CHF 932 million, or 31%, in comparison to the second quarter of 2005. This resulted primarily from a charge of CHF 960 million in the second quarter of 2005 in Institutional Securities to increase the reserve for certain private litigation. Income tax expense The Group recorded income tax expense of CHF 437 million compared to CHF 112 million in the third quarter of 2004, an increase of CHF 325 million. Institutional Securities recorded an income tax expense of CHF 248 million in the third quarter of 2005 compared to an income tax benefit of CHF 57 million in the third quarter of 2004, reflecting a CHF 126 million release of tax contingency accruals following the favorable resolution of matters with local tax authorities in the third quarter of 2004. Income tax expense in the third quarter of 2005 was positively impacted by the release of valuation allowances on deferred tax assets in both insurance segments, totaling CHF 163 million. The Group tax expense is not impacted by investments that are required to be consolidated under the relevant accounting rules, primarily FIN 46R - Financial Accounting Standards Board Interpretation No. 46 Revised. The amount of income relating to these investments varies from one period to the next and in the third quarter of 2005 amounted to CHF 518 million. Due mainly to this effect, and the release of valuation allowances on deferred tax assets in the Insurance segments, the Group’s effective tax rate in the third quarter of 2005 was 15% compared to the Swiss statutory rate of 22%. Minority interests Credit Suisse Group’s net revenues and operating expenses include the consolidation of certain entities and private equity funds primarily under FIN 46R. The consolidation of these entities does not impact net income as the amounts recorded in net revenues and expenses are offset by equivalent amounts recorded in minority interests. Minority interests of CHF 510 million were reported in the third quarter of 2005, an increase of CHF 305 million, or 149%, compared to the third quarter of 2004, due to increased investment-related gains in the current quarter. The investment-related gains reported in the third quarter of 2005 were not as high as those reported in the second quarter of 2005, resulting in a decrease in minority interests of CHF 198 million, or 28%. Financing During the third quarter of 2005, the Group issued EUR 850 million 3.125 per cent Guaranteed Notes, due in 2012, and EUR 900 million 3.625 per cent Step-up Callable Subordinated Guaranteed Notes, due in 2020. These notes are quoted on the Swiss Exchange (SWX) and the proceeds were used to repay or repurchase other outstanding notes and bonds. Equity capital Credit Suisse Group’s consolidated BIS tier 1 ratio was 11.1% as of September 30, 2005, up from 10.9% as of June 30, 2005. The Group continued the share buyback program approved by the Annual General Meeting earlier in 2005, repurchasing CHF 1.2 billion of own shares since the initiation of the program. Risk-weighted assets remained stable compared to the second quarter of 2005, while tier 1 capital increased CHF 585 million as share repurchases under the buyback program partially offset the prior quarter’s net income. The Group’s shareholders’ equity as of September 30, 2005 increased to CHF 38.6 billion from CHF 38.2 billion as of June 30, 2005. Winterthur continued to improve its capital position, reporting shareholders’ equity of CHF 9.7 billion at September 30, 2005, compared to CHF 9.4 billion at June 30, 2005, an increase of CHF 0.3 billion. Net new assets The Group reported net new assets of CHF 19.0 billion in the third quarter of 2005, an increase of CHF 2.8 billion compared to the second quarter of 2005. Private Banking reported strong net new asset inflows of CHF 14.3 billion in the third quarter of 2005, with healthy contributions from strategic key markets in Asia and the European onshore business. Wealth & Asset Management recorded net new assets of CHF 4.0 billion, mainly reflecting new client accounts in Private Client Services and inflows in Credit Suisse Asset Management, driven primarily by solid business growth in Europe. As of September 30, 2005, the Group’s total assets under management amounted to CHF 1,404.6 billion, an increase of 4.7% compared to June 30, 2005, due to strong asset inflows, higher market valuations and foreign currency exchange rate movements.

Credit Suisse Group structure Credit Suisse Group comprises three divisions with six reporting segments: Credit Suisse, including the segments Private Banking and Corporate & Retail Banking; Credit Suisse First Boston, including the segments Institutional Securities and Wealth & Asset Management; and Winterthur, including the segments Life & Pensions and Non-Life. The organizational chart presented below reflects the legal entity, division and segment structure that have been operational since May 16, 2005. The Bank is comprised of former Credit Suisse First Boston and former Credit Suisse, which were merged on May 13, 2005. The merger of these Swiss legal entities constitutes the first step towards the creation of an integrated organization. It is planned that the merged bank will combine the Credit Suisse and Credit Suisse First Boston divisions in 2006 in order to better address client needs in a rapidly changing market environment. The objective of the new integrated bank is to operate more efficiently and provide enhanced advisory services and products with a sharper focus on client needs. The new integrated bank will be structured along three lines of business. Private Banking will include international and Swiss wealth management as well as services for private clients and corporate clients including pension funds in Switzerland. Investment Banking will include the products and services provided to corporate and investment banking clients. Asset Management will include asset management products and services.

The following table sets forth an overview of segment results:
3Q2005, in CHF m			Private Banking		Corporate & Retail Banking		Institutional Securities		Wealth & Asset Management		Life & Pensions		Non-Life		Corporate Center		Credit Suisse Group
Net revenues			2,021		879		4,303		1,250		4,246		3,029		(218)		15,510
Policyholder benefits, claims and dividends			–		–		–		–		3,531		2,111		39		5,681
Provision for credit losses			4		(10)		(41)		0		(3)		1		1		(48)
Total benefits, claims and credit losses			4		(10)		(41)		0		3,528		2,112		40		5,633
Insurance underwriting, acquisition and administration expenses			–		–		–		–		586		705		1		1,292
Banking compensation and benefits			601		295		2,278		333		–		–		88		3,595
Other expenses			524		256		1,121		353		30		49		(224)		2,109
Total operating expenses			1,125		551		3,399		686		616		754		(135)		6,996
Income from continuing operations before taxes and minority interests			892		338		945		564		102		163		(123)		2,881
Income tax expense/(benefit)			152		74		248		30		0		(57)		(10)		437
Minority interests, net of tax			12		0		85		433		6		15		(41)		510
Income from continuing operations			728		264		612		101		96		205		(72)		1,934
Income/(loss) from discontinued operations, net of tax			0		0		0		0		0		(15)		(1)		(16)
Net income			728		264		612		101		96		190		(73)		1,918

The following table sets forth details of BIS data (risk-weighted assets, capital and ratios):
			Credit Suisse Group
in CHF m, except where indicated			30.09.05		30.06.05		31.12.04
Risk-weighted positions			225,946		224,770		187,775
Market risk equivalents			13,658		13,411		11,474
Risk-weighted assets			239,604		238,181		199,249
Tier 1 capital			26,519		25,934		24,596
	of which non-cumulative perpetual preferred securities		2,175		2,186		2,118
Tier 1 ratio			11.1%		10.9%		12.3%
Total capital			33,213		33,270		33,121
Total capital ratio			13.9%		14.0%		16.6%
As of January 1, 2004, Credit Suisse Group bases its capital adequacy calculations on US GAAP, which is in accordance with the Swiss Federal Banking Commission (SFBC) newsletter 32 (dated December 18, 2003). The SFBC has advised Credit Suisse Group that it may continue to include as Tier 1 capital CHF 2.2 billion as at September 30, 2005 (June 30, 2005: CHF 2.2 billion and December 31, 2004: CHF 2.1 billion) of equity from special purpose entities, which are deconsolidated under FIN 46R.

The following table sets forth details of assets under management and client assets:
in CHF bn			30.09.05		30.06.05		31.12.04		Change in % from 30.06.05		Change in % from 31.12.04
Private Banking
Assets under management			637.2		602.3		539.1		5.8		18.2
Client assets			674.5		637.1		569.4		5.9		18.5
Corporate & Retail Banking
Assets under management			56.3		54.9		53.9		2.6		4.5
Client assets			116.6		112.8		102.1		3.4		14.2
Institutional Securities
Assets under management			14.4		14.2		15.2		1.4		(5.3)
Client assets			108.3		112.6		95.1		(3.8)		13.9
Wealth & Asset Management
Assets under management 1)			543.8		519.9		472.9		4.6		15.0
Client assets			561.3		536.7		488.9		4.6		14.8
Life & Pensions
Assets under management			125.1		122.5		115.5		2.1		8.3
Client assets			125.1		122.5		115.5		2.1		8.3
Non-Life
Assets under management			27.8		27.4		24.1		1.5		15.4
Client assets			27.8		27.4		24.1		1.5		15.4
Credit Suisse Group
Discretionary assets under management			684.9		662.4		595.8		3.4		15.0
Advisory assets under management			719.7		678.8		624.9		6.0		15.2
Total assets under management			1,404.6		1,341.2		1,220.7		4.7		15.1
Total client assets			1,613.6		1,549.1		1,395.1		4.2		15.7

The following table sets forth details of net new assets:
									9 months
in CHF bn			3Q2005		2Q2005		3Q2004		2005		2004
Private Banking			14.3		12.8		3.8		34.1		22.5
Corporate & Retail Banking			0.4		0.4		0.2		1.8		0.8
Institutional Securities			0.0		(1.5)		0.2		(2.0)		1.4
Wealth & Asset Management 1)			4.0		4.2		0.1		13.3		2.1
Life & Pensions			0.3		0.3		0.4		3.4		2.6
Credit Suisse Group			19.0		16.2		4.7		50.6		29.4
1) Excluding assets managed on behalf of other entities within Credit Suisse Group. This differs from the presentation of the Wealth & Asset Management segment results, in which such assets are included.

Risk Management Credit Suisse Group’s overall position risk, measured on the basis of Economic Risk Capital (ERC), remained essentially unchanged over the course of the third quarter of 2005, with higher equity and international lending risks being offset by lower interest rate, emerging market, Swiss and retail lending and real estate risks. The average Value-at-Risk (VaR) for the Group’s trading books remained unchanged in CHF terms and decreased by 5% in USD terms during the third quarter of 2005, mainly due to a reduction in the VaR for mortgage exposures following a reduction in the market volatility in the rolling two-year data set used to compute VaR. The loan portfolios across the Group continued to benefit from a favorable credit environment, resulting in a net release of credit provisions of CHF 48 million for the third quarter of 2005. Economic Risk Capital trends The Group assesses risk and economic capital adequacy using its Economic Risk Capital (ERC) model. ERC is designed to measure all quantifiable risks associated with the Group’s activities on a consistent and comprehensive basis. The Group assigns ERC for position risk, operational risk and expense risk. Position risk measures the potential annual economic loss associated with market, credit and insurance exposures that is exceeded with a given, small probability (1% for risk management purposes; 0.03% for capital management purposes). It is not a measure of the potential impact on reported earnings, since non-trading activities generally are not marked to market through earnings. Over the course of the third quarter of 2005, the Group’s 1-year, 99% position risk ERC increased by 1% compared to the second quarter of 2005, with higher equity and international lending risks largely being offset by lower interest rate, emerging market and real estate risks. Over the course of the third quarter of 2005, Credit Suisse First Boston’s contribution to the Group’s ERC further increased to 55% compared to 52% at the end of the second quarter of 2005. The contribution of the other divisions fell accordingly to 45%, with Winterthur contributing 30% (compared to 33% at the end of the previous quarter) and Credit Suisse and the Corporate Center contributing 13% and 2%, respectively (unchanged from the previous quarter). Trading risks Credit Suisse Group assumes trading risks through the trading activities of the Institutional Securities segment and – to a lesser extent – the trading activities of the Private Banking and Corporate & Retail Banking segments. The other segments do not engage in trading activities. Trading risks are measured using Value-at-Risk (VaR) as one of a range of risk measurement tools. VaR is the potential loss in fair value of trading positions due to adverse market movements over a defined time horizon and for a specified confidence level. The table below shows the Group’s trading-related market risk on a consolidated basis, as measured by a 10-day VaR scaled to a 1-day holding period and based on a 99% confidence level. This means that there is a one in 100 chance of incurring a daily mark-to-market trading loss that is at least as large as the reported VaR. Credit Suisse Group’s average 1-day, 99% VaR in the third quarter of 2005 was CHF 64.2 million, compared to CHF 64.8 million during the second quarter of 2005. In US dollar terms, Credit Suisse Group’s average 1-day, 99% VaR was USD 50.4 million during the third quarter 2005, compared to USD 52.9 million during the second quarter of 2005. The decrease in average VaR was mainly due to a reduction in the VaR for mortgage exposures following a reduction in the market volatility in the rolling two-year data set used to compute VaR. The segments with trading portfolios use backtesting to assess the accuracy of the VaR model. Daily backtesting profit and loss is compared to VaR with a one-day holding period. Backtesting profit and loss is a subset of actual trading revenue and includes only the profit and loss effects due to movements in financial market variables such as interest rates, equity prices and foreign exchange rates on the previous night’s positions. It is appropriate to compare this measure with VaR for backtesting purposes, since VaR assesses only the potential change in position value due to overnight movements in financial market variables. On average, an accurate 1-day, 99% VaR model should have no more than four backtesting exceptions per year. A backtesting exception occurs when the daily loss exceeds the daily VaR estimate. Credit Suisse Group had no backtesting exceptions during the third quarter of 2005 (and no backtesting exceptions in the last twelve months). The histogram entitled “Credit Suisse Group trading revenue” compares the distribution of daily backtesting profit and loss during the third quarter of 2005 with the distribution of actual trading revenues, which includes fees, commissions, provisions and the profit and loss effects associated with any trading subsequent to the previous night’s positions. Loan exposure The Group’s total loan exposure grew 2% as of September 30, 2005 compared to June 30, 2005, with increases at Credit Suisse and Credit Suisse First Boston. Compared to June 30, 2005, the Group’s total non-performing loans declined 12% and total impaired loans declined 11% as of September 30, 2005. All divisions reported reductions in total non-performing loans and total impaired loans during the third quarter, reflecting the continued favorable credit cycle. During the third quarter of 2005, the Group recorded a net release of provisions for credit losses amounting to CHF 48 million, compared to a net release of CHF 29 million recorded in the second quarter. Presented in the accompanying tables are the additions, releases and recoveries included in determining the allowance for loan losses. Coverage of total impaired loans by valuation allowances at the Group was virtually unchanged at the end of the third quarter of 2005 compared to the end of the second quarter, as coverage improved at Credit Suisse but decreased at Credit Suisse First Boston. Coverage of total non-performing loans improved across the Group.

The following table sets forth the Group's risk profile, using ERC as the common risk denominator:
					Change in % from				Change Analysis: Brief Summary
in CHF m			30.09.05		30.06.05		31.12.04		30.09.05 vs 30.06.05
Interest Rate ERC, Credit Spread ERC & Foreign Exchange Rate ERC			4,438		(5)		5		Lower interest rate mismatch risk between assets and liabilities at Winterthur, partially offset by higher credit spread risk at Credit Suisse First Boston
Equity Investment ERC			4,017		4		37		Higher equity exposures at Winterthur
Swiss & Retail Lending ERC			1,623		(3)		(3)		Lower impaired assets at Credit Suisse
International Lending ERC & Counterparty ERC			2,956		9		35		Higher lending exposure at Credit Suisse First Boston due to syndications
Emerging Markets ERC			2,064		(6)		2		Lower Brazil, Turkey and Russia exposure at Credit Suisse First Boston
Real Estate ERC & Structured Asset ERC  1)			3,682		(2)		26		Decrease in Credit Suisse First Boston's commercial real estate exposure, mainly due to loan sales
Insurance Underwriting ERC			847		2		6		Increase due to consideration of incurred but not reported claims in closed portfolios and parameter update
Simple sum across risk categories			19,627		–		17
Diversification benefit			(6,084)		(2)		15
Total Position Risk ERC			13,543		1		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. For a more detailed description of the Group’s ERC model, please refer to Credit Suisse Group's Annual Report 2004, which is available on the website: www.credit-suisse.com/annualreport2004. Prior period balances 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 exposure as well as the real estate acquired at auction and real estate for own use in Switzerland.

The following table sets forth the trading-related market risk exposure for Credit Suisse Group on a consolidated basis, as measured by scaled 1-day, 99% VaR:
			3Q2005								2Q2005
in CHF m			Minimum		Maximum		Average		30.09.05		Minimum		Maximum		Average		30.06.05
Credit Suisse Group 1)
Interest rate & credit spread			47.0		73.4		60.4		53.8		44.2		73.5		61.6		44.2
Foreign exchange rate			6.0		16.8		9.4		11.1		8.0		21.3		13.0		8.0
Equity			33.4		54.6		42.7		40.1		31.4		46.7		37.6		45.3
Commodity			6.8		15.5		11.2		14.9		1.3		9.5		3.2		9.5
Diversification benefit			–	2)	–	2)	(59.5)		(57.9)		–	2)	–	2)	(50.6)		(51.0)
Total			48.6		76.9		64.2		62.0		52.0		77.1		64.8		56.0
1) Disclosure covers all trading books of Credit Suisse Group. Numbers represent daily 10-day VaR scaled to a 1-day holding period.
2) As the minimum and maximum occur on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit.

The following table sets forth the gross loan exposure of the three divisions and Credit Suisse Group:
			Credit Suisse						Credit Suisse First Boston						Winterthur						Credit Suisse Group
in CHF m			30.09.05		30.06.05		31.12.04		30.09.05		30.06.05		31.12.04		30.09.05		30.06.05		31.12.04		30.09.05		30.06.05		31.12.04
Consumer loans:
Mortgages			71,348		69,828		67,119		0		0		0		8,131		8,098		8,485		77,302		77,926		75,604
Loans collateralized by securities			16,583		16,195		15,018		0		0		0		4		4		4		16,587		16,199		15,022
Other			2,434		2,596		2,319		883		828		540		0		0		0		3,317		3,424		2,859
Consumer loans			90,365		88,619		84,456		883		828		540		8,135		8,102		8,489		97,206		97,549		93,485
Corporate loans:
Real estate			26,443		26,282		26,135		533		585		613		1,376		1,372		1,376		28,352		28,239		28,124
Commercial & industrial loans			39,522		37,449		33,126		16,593		14,155		13,501		1,469		1,452		958		57,476		53,056		47,585
Loans to financial institutions			7,565		8,291		6,279		7,675		6,647		5,351		2,071		2,102		2,096		17,311		17,031		13,726
Governments and public institutions			1,638		1,646		1,898		250		252		402		2,187		2,174		2,101		4,075		4,072		4,401
Corporate loans			75,168		73,668		67,438		25,051		21,639		19,867		7,103		7,100		6,531		107,214		102,398		93,836
Loans, gross			165,533		162,287		151,894		25,934		22,467		20,407		15,238		15,202		15,020		204,420		199,947		187,321
(Unearned income)/deferred expenses, net			125		130		142		(35)		(35)		(32)		7		9		5		97		104		116
Allowance for loan losses			(1,982)		(2,115)		(2,438)		(412)		(558)		(533)		(51)		(59)		(66)		(2,445)		(2,733)		(3,038)
Total loans, net			163,676		160,302		149,598		25,487		21,874		19,842		15,194		15,152		14,959		202,072		197,318		184,399
This disclosure presents the lending exposure of the Group from a risk management perspective. This presentation differs from other disclosures in this document.

The following table sets forth the impaired loan portfolio of the three divisions and Credit Suisse Group:
			Credit Suisse						Credit Suisse First Boston						Winterthur						Credit Suisse Group
in CHF m			30.09.05		30.06.05		31.12.04		30.09.05		30.06.05		31.12.04		30.09.05		30.06.05		31.12.04		30.09.05		30.06.05		31.12.04
Non-performing loans			1,206		1,347		1,481		197		311		268		32		36		22		1,435		1,693		1,771
Non-interest earning loans			1,011		1,101		1,259		31		11		9		4		13		14		1,045		1,126		1,281
Total non-performing loans			2,217		2,448		2,740		228		322		277		36		49		36		2,480		2,819		3,052
Restructured loans			22		9		95		61		82		17		0		1		5		84		91		117
Potential problem loans			786		813		1,077		295		353		355		55		65		71		1,135		1,232		1,503
Total other impaired loans			808		822		1,172		356		435		372		55		66		76		1,219		1,323		1,620
Total impaired loans, gross			3,025		3,270		3,912		584		757		649		91		115		112		3,699		4,142		4,672
Valuation allowances as % of
	Total non-performing loans		89.4%		86.4%		89.0%		180.7%		173.3%		192.4%		141.7%		120.4%		183.3%		98.6%		96.9%		99.5%
	Total impaired loans		65.5%		64.7%		62.3%		70.5%		73.7%		82.1%		56.0%		51.3%		58.9%		66.1%		66.0%		65.0%

The following table sets forth the movements in the allowance for loan losses of the three divisions and Credit Suisse Group:
			Credit Suisse						Credit Suisse First Boston						Winterthur						Credit Suisse Group
in CHF m			3Q2005		2Q2005		3Q2004		3Q2005		2Q2005		3Q2004		3Q2005		2Q2005		3Q2004		3Q2005		2Q2005		3Q2004
Balance beginning of period			2,115		2,245		2,657		558		543		1,057		59		64		76		2,733		2,851		3,790
New provisions			63		102		83		24		65		107		2		6		3		90		173		194
Releases of provisions			(70)		(134)		(69)		(76)		(60)		(79)		(4)		(4)		(5)		(150)		(198)		(154)
Net additions/(releases) charged to income statement			(7)		(32)		14		(52)		5		28		(2)		2		(2)		(60)		(25)		40
Gross write-offs			(132)		(119)		(174)		(119)		(56)		(329)		(4)		(7)		0		(255)		(182)		(502)
Recoveries			8		11		6		2		6		10		0		0		0		10		17		16
Net write-offs			(124)		(108)		(168)		(117)		(50)		(319)		(4)		(7)		0		(245)		(165)		(486)
Provisions for interest			(2)		2		6		17		23		17		0		0		0		16		25		24
Foreign currency translation impact and other adjustments, net			0		8		6		6		37		(9)		(2)		0		(2)		1		47		(7)
Balance end of period			1,982		2,115		2,515		412		558		774		51		59		72		2,445		2,733		3,361
Provision for credit losses disclosed in the Credit Suisse Group consolidated statements of income also includes provisions for lending-related exposure of CHF 12 million, CHF -4 million and CHF -2 million for 3Q2005, 2Q2005 and 3Q2004, respectively.

Private Banking Private Banking provides high-net-worth individuals in Switzerland and in numerous other markets around the world with wealth management products and services. Private Banking reported net income of CHF 728 million in the third quarter of 2005, driven by strong asset-based and transaction-based revenues. Net income increased by CHF 217 million, or 42%, compared to the third quarter of 2004 and by CHF 147 million, or 25%, compared to the previous quarter, reflecting a favorable market environment and healthy levels of client activity. During the third quarter of 2005, Private Banking achieved strong net new assets of CHF 14.3 billion. Total net new assets for the first nine months of 2005 amounted to CHF 34.1 billion, representing an annualized growth rate of 8.4%, which is well above the mid-term target of 5.0%. Strategic key markets in Asia and the European onshore business generated healthy asset inflows in the first nine months of 2005, resulting in double-digit growth rates in these markets. Together with the 12% increase in net revenues versus the second quarter of 2005, this development reflects Private Banking’s favorable position in launching new products building on its excellent service and advice capabilities. Net revenues of CHF 2,021 million were recorded in the third quarter of 2005, up CHF 377 million, or 23%, versus the third quarter of 2004. Compared to the previous quarter, net revenues rose by CHF 211 million, or 12%. Higher commissions and fees, as well as higher trading revenues, drove this substantial increase. The decline in net interest income in the third quarter of 2005 versus the previous quarter was related to higher dividends received on Private Banking’s trading portfolio during the second quarter of 2005 with an offsetting effect in trading revenues. Commissions and fees of CHF 1,306 million in the third quarter of 2005 were up CHF 193 million, or 17%, versus the same period of 2004 and up CHF 126 million, or 11%, versus the previous quarter. This increase was driven by higher asset-based commissions and fees, as well as increased brokerage volumes. Increased commissions and fees were further driven by strong product issuance. Trading revenues of CHF 252 million in the third quarter of 2005 were CHF 181 million, or 255%, higher than in the third quarter of 2004 and CHF 167 million, or 196%, higher than in the second quarter of 2005. Trading revenues benefited from strong trading execution, related to higher client flow from securities transactions. Total operating expenses amounted to CHF 1,125 million in the third quarter of 2005, an increase of CHF 131 million, or 13%, versus the same period of last year and CHF 41 million, or 4%, versus the previous quarter. Increased compensation and benefits resulted primarily from higher performance-related compensation accruals, in line with improved results, as well as from Private Banking’s ongoing strategic recruitment efforts in international growth markets in Asia, the Middle East and Eastern Europe. The moderate increase in other expenses was driven mainly by higher commission expenses, reflecting increased transaction volume and fees. The cost/income ratio was 55.7% in the third quarter of 2005, an improvement of 4.8 percentage points versus the same period of last year and of 4.2 percentage points versus the previous quarter. This reflected the increase in net revenues in the third quarter of 2005, which more than offset a rise in operating expenses. The gross margin for the first nine months of 2005 was 131.3 basis points. In the third quarter of 2005, the gross margin was 130.9 basis points, representing an increase of 9.2 basis points versus the same period of 2004 and of 5.3 basis points versus the previous quarter. Assets under management stood at CHF 637.2 billion at the end of the third quarter of 2005, an increase of CHF 34.9 billion, or 5.8%, compared to the end of the previous quarter and of CHF 98.1 billion, or 18.2%, compared to the end of 2004. Strong asset inflows and higher equity markets were the main drivers of this growth. In addition, the strengthening of the US dollar throughout 2005 contributed to this increase as approximately 35% of Private Banking’s assets under management at the end of the third quarter of 2005 were held in US dollar-based assets.

The following table presents the results of the Private Banking segment:
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Net interest income			449		513		437		(12)		3		1,476		1,496		(1)
Commissions and fees			1,306		1,180		1,113		11		17		3,695		3,583		3
Trading revenues including realized gains/(losses) from investment securities, net			252		85		71		196		255		506		261		94
Other revenues			14		32		23		(56)		(39)		66		113		(42)
Total noninterest revenues			1,572		1,297		1,207		21		30		4,267		3,957		8
Net revenues			2,021		1,810		1,644		12		23		5,743		5,453		5
Provision for credit losses			4		16		(2)		(75)		–		23		(4)		–
Compensation and benefits			601		580		503		4		19		1,781		1,649		8
Other expenses			524		504		492		4		7		1,488		1,504		(1)
Restructuring charges			0		0		(1)		–		(100)		0		(3)		(100)
Total operating expenses			1,125		1,084		994		4		13		3,269		3,150		4
Income from continuing operations before taxes and minority interests			892		710		652		26		37		2,451		2,307		6
Income tax expense			152		123		137		24		11		431		436		(1)
Minority interests, net of tax			12		6		4		100		200		26		14		86
Net income			728		581		511		25		42		1,994		1,857		7

The following table presents key information of the Private Banking segment:

9 months

3Q2005

2Q2005

3Q2004

2005

2004

Cost/income ratio

55.7%

59.9%

60.5%

56.9%

57.8%

Gross margin

130.9 bp

125.6 bp

121.7 bp

131.3 bp

135.6 bp

of which asset-driven

78.4 bp

79.0 bp

80.8 bp

80.0 bp

81.1 bp

of which transaction-driven

48.3 bp

44.1 bp

36.5 bp

47.2 bp

46.9 bp

of which other

4.2 bp

2.5 bp

4.4 bp

4.1 bp

7.6 bp

Net margin

47.9 bp

40.7 bp

38.1 bp

46.2 bp

46.5 bp

Net new assets in CHF bn

14.3

12.8

3.8

34.1

22.5

Average allocated capital in CHF m

3,957

3,841

3,362

3,774

3,295

The following table outlines selected balance sheet and other data of the Private Banking segment:
			30.09.05		30.06.05		31.12.04		Change in % from 30.06.05		Change in % from 31.12.04
Assets under management in CHF bn			637.2		602.3		539.1		5.8		18.2
Total assets in CHF bn			222.0		223.4		188.7		(0.6)		17.6
Number of employees (full-time equivalents)			12,976		12,722		12,342		2		5

Corporate & Retail Banking Corporate & Retail Banking offers banking products and services to corporate and retail clients in Switzerland. Corporate & Retail Banking reported net income of CHF 264 million in the third quarter of 2005, representing an increase of CHF 65 million, or 33%, compared to the same period of 2004. This improvement was driven by strong net revenues and the ongoing favorable credit environment. Net revenues totaled CHF 879 million in the third quarter of 2005, up CHF 71 million, or 9%, compared to the same period of 2004 and up CHF 21 million, or 2%, compared to the previous quarter. These increases in net revenues were driven by higher commissions and fees, as well as higher trading revenues. Commissions and fees rose CHF 30 million, or 15%, compared to the third quarter of 2004 and CHF 10 million, or 5%, compared to the previous quarter, mainly reflecting higher brokerage income and product sales, due to the favorable market environment and strong client activity. The increase in trading revenues of CHF 36 million, or 54%, versus the same period of 2004 and of CHF 20 million, or 24%, compared to the second quarter of 2005 was mainly attributable to the positive impact of changes in the fair value of interest rate derivatives used for risk management purposes that did not qualify for hedge accounting. Corporate & Retail Banking recorded a net release of provision for credit losses in the amount of CHF 10 million in the third quarter of 2005, compared to net new provisions of CHF 20 million in the same period of last year and a net release of CHF 44 million in the previous quarter. The releases of provisions and the low level of new provisions in the third quarter of 2005 reflected the ongoing favorable credit environment. Total impaired loans declined from CHF 3.0 billion at June 30, 2005, to CHF 2.8 billion at September 30, 2005. Total operating expenses amounted to CHF 551 million in the third quarter of 2005. The increase of CHF 24 million, or 5%, compared to the third quarter of 2004 was due primarily to higher performance-related compensation accruals, in line with improved results. Corporate & Retail Banking achieved a strong return on average allocated capital of 21.2% during the first nine months of 2005, an improvement of 4.2 percentage points compared to the same period of 2004. The return on average allocated capital was thus well above Corporate & Retail Banking’s mid-term target of 15.0%. In the third quarter of 2005, return on average allocated capital was 19.8%. Corporate & Retail Banking’s cost/income ratio was 62.7% in the third quarter of 2005, representing an improvement of 2.5 percentage points compared to the same period of 2004. Compared to the previous quarter, the cost/income ratio improved by 1.2 percentage points. Corporate & Retail Banking intensified its marketing efforts and activities during the third quarter of 2005 with the aim of further expanding its Swiss residential mortgage business. In the third quarter of 2005, Corporate & Retail Banking recorded continued strong growth in private mortgage volumes of approximately 10% (on an annualized basis).

The following table presents the results of the Corporate & Retail Banking segment:
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Net interest income			526		521		513		1		3		1,554		1,572		(1)
Commissions and fees			227		217		197		5		15		668		613		9
Trading revenues including realized gains/(losses) from investment securities, net			103		83		67		24		54		287		287		0
Other revenues			23		37		31		(38)		(26)		88		73		21
Total noninterest revenues			353		337		295		5		20		1,043		973		7
Net revenues			879		858		808		2		9		2,597		2,545		2
Provision for credit losses			(10)		(44)		20		(77)		–		(73)		128		–
Compensation and benefits			295		291		266		1		11		894		841		6
Other expenses			256		257		261		0		(2)		734		733		0
Total operating expenses			551		548		527		1		5		1,628		1,574		3
Income from continuing operations before taxes and minority interests			338		354		261		(5)		30		1,042		843		24
Income tax expense			74		77		62		(4)		19		226		198		14
Minority interests, net of tax			0		0		0		–		–		1		1		0
Net income			264		277		199		(5)		33		815		644		27

The following table presents key information of the Corporate & Retail Banking segment:
									9 months
			3Q2005		2Q2005		3Q2004		2005		2004
Cost/income ratio			62.7%		63.9%		65.2%		62.7%		61.8%
Net new assets in CHF bn			0.4		0.4		0.2		1.8		0.8
Return on average allocated capital			19.8%		21.4%		15.6%		21.2%		17.0%
Average allocated capital in CHF m			5,330		5,185		5,098		5,122		5,049

The following table outlines selected balance sheet and other data of the Corporate & Retail Banking segment:
			30.09.05		30.06.05		31.12.04		Change in % from 30.06.05		Change in % from 31.12.04
Assets under management in CHF bn			56.3		54.9		53.9		2.6		4.5
Total assets in CHF bn			111.4		106.7		99.5		4.3		11.9
Mortgages in CHF bn			65.6		64.5		63.0		1.7		4.1
Other loans in CHF bn			28.2		26.3		23.7		7.2		19.0
Number of branches			215		214		214		–		–
Number of employees (full-time equivalents)			8,404		8,328		8,314		1		1

Institutional Securities Institutional Securities provides financial advisory, lending and capital raising services, as well as sales and trading for global users and suppliers. Institutional Securities reported net income of CHF 612 million in the third quarter of 2005, an increase of 110% compared to the third quarter of 2004. This improvement reflects an increased focus on high-margin products and the generally favorable market environment. Pre-tax margin (excluding minority interest-related revenues and expenses) increased to 20.4% in the third quarter of 2005, compared to 7.7% in the third quarter of 2004, demonstrating clear progress against its performance targets. Net revenues totaled CHF 4,303 million in the third quarter of 2005, up 40% compared to the third quarter of 2004, reflecting higher trading and investment banking revenues. Excluding minority interest revenues, net revenues increased by 39%. Institutional Securities reported net income of CHF 612 million in the third quarter of 2005 compared to a net loss of CHF 408 million in the second quarter of 2005. This was due to higher net revenues and lower other expenses, driven by a CHF 624 million after-tax charge to increase the reserve for certain private litigation matters in the second quarter of 2005. Excluding the impact of this litigation charge, Institutional Securities’ third quarter net income increased by CHF 396 million, or 183%, compared to the second quarter of 2005. Provision for credit losses amounted to a net release of CHF 41 million in the third quarter of 2005, reflecting the continued favorable credit environment. This compares to credit provisions of CHF 24 million in the third quarter of 2004. Compared to June 30, 2005, total impaired loans decreased by CHF 173 million to CHF 584 million, and valuation allowances as a percentage of total impaired loans decreased by 3.2 percentage points to 70.5% as of September 30, 2005. Total operating expenses of CHF 3,399 million were reported in the third quarter of 2005, up CHF 619 million, or 22%, from the third quarter of 2004. Compensation and benefits increased by CHF 616 million, reflecting higher performance-related compensation costs due to increased net revenues in the third quarter of 2005 and higher salaries and employee benefits primarily due to increased headcount. Compared to the second quarter of 2005, total operating expenses declined by CHF 492 million primarily due to lower other expenses as the second quarter of 2005 included a CHF 960 million charge to increase the reserve for certain private litigation matters. Excluding the litigation charge, total operating expenses increased by 16% versus the second quarter of 2005, primarily reflecting an increase in compensation and benefits due to higher performance-related compensation costs and higher costs related to deferred compensation plans. Excluding the litigation charge, other expenses increased by CHF 87 million from the second quarter of 2005, due in part to higher professional fees and a premises charge. Total investment banking revenues include debt underwriting, equity underwriting and advisory and other fees. In the third quarter of 2005, investment banking revenues totaled CHF 1,126 million, up 30% versus the third quarter of 2004, primarily due to increases in equity underwriting and advisory fees. Debt underwriting revenues of CHF 482 million were up 8% compared to the third quarter of 2004, primarily reflecting higher results in investment grade capital markets and leveraged finance, partly offset by lower results in structured products. Investment grade capital markets revenues rose significantly from the third quarter of 2004, reflecting a greater focus on profitable activity rather than on league table rankings, a direct result of the strategy to focus on high-margin strategic products. In line with this shift in focus, Institutional Securities ranked eleventh in global investment grade new issuance volumes through the third quarter of 2005, down from third for the full year 2004, but with a marked improvement in profitability. The leveraged finance business remains strong overall. There has been a pronounced shift in the industry in issuer activity from the high yield securities market to the syndicated loan market. Despite flat high yield new issuance volumes in the industry during the third quarter of 2005, total leveraged finance revenues increased versus the third quarter of 2004 due to higher revenues in the syndicated loan business, partly offset by lower revenues from high yield underwriting. The leveraged finance business also benefited from the expansion of the franchise in Europe and Asia, where 2005 year-to-date revenues more than doubled from the same period in 2004. Through the third quarter of 2005, Institutional Securities ranked fifth in global high yield new issuance volumes in an increasingly competitive market, in which the top five competitors are separated by narrow amounts. Equity underwriting revenues totaled CHF 263 million in the third quarter of 2005, more than double the volume recorded in the third quarter of 2004 and up 42% compared to the second quarter of 2005. These strong results are in line with the increase in the volume of industry-wide new equity issuance versus the previous quarter and the third quarter of 2004. In accordance with its strategy of focusing increasingly on high-margin products, Institutional Securities ranked first in global initial public offering market share through the third quarter of 2005, up from third through the second quarter of 2005 and for the full year 2004. Institutional Securities ranked first in initial public offering market share in the Americas and in Europe through the third quarter of 2005. Key transactions during this period reflected the geographic and industry breadth of the equity franchise and included initial public offerings for RHM plc (a UK food producer), Cyrela Brazil Realty S.A. (a Brazilian real estate developer), Panalpina World Transport (Holding) Ltd. (a Swiss provider of forwarding and logistics services) and a follow-on common stock offering for Google Inc. (a US internet company). Advisory and other fees of CHF 381 million in the third quarter of 2005 were up 25% compared to the third quarter of 2004. This increase was due primarily to higher industry-wide activity, as well as to Institutional Securities’ increased market share in both global announced and completed mergers and acquisitions. Advisory and other fees grew 28% compared to the second quarter of 2005, reflecting higher industry-wide completed mergers and acquisitions volumes. Through the third quarter of 2005, Institutional Securities ranked ninth in global announced mergers and acquisitions (up from eleventh for the full year 2004) and sixth in global completed mergers and acquisitions (up from ninth for the full year 2004). Notable transactions announced in the third quarter of 2005 included the Teva Pharmaceutical Industries Ltd. acquisition of IVAX Corporation, the Intelsat Limited acquisition of PanAmSat Holding Corp. and the Raffles Holding Ltd. sale of its hotel business to Colony Capital LLC. Total trading revenues include results from fixed income and equity sales and trading. Total trading revenues for the third quarter of 2005 amounted to CHF 3,009 million, up 47% compared to the third quarter of 2004. This increase reflected the generally favorable market environment for fixed income and equity trading. Total trading revenues increased by 48% compared to the second quarter of 2005. These increases were achieved with virtually no change in theaverage daily VaR compared to the previous quarter. Institutional Securities’ average daily VaR in the third quarter of 2005 was CHF 63 million, down from CHF 66 million in the third quarter of 2004. Average allocated capital increased by CHF 2.7 billion from the third quarter of 2004 and CHF 1.7 billion from the second quarter of 2005, in line with the strategy to extend incremental capital to support high growth trading businesses. Fixed income trading generated revenues of CHF 1,770 million in the third quarter of 2005, an increase of 31% compared to the third quarter of 2004. This growth in revenues primarily reflects improved results in interest rate products, leveraged finance and residential structured products, partially offset by weaker results in global foreign exchange positioning. During the third quarter of 2005, the interest rate markets remained challenging as the yield curve continued to flatten. Despite this, the interest rate products business increased revenues globally due partly to a renewed focus on the business including several key new hires. During the third quarter of 2005, Institutional Securities changed its estimate of fair value of its retained interests in residential mortgage-backed securities. Specifically, the valuation was enhanced to reflect improved observable secondary market transaction data and to improve the modeling of the expected prepayment and default assumptions that are used to generate the expected future cash flows from these securities. This change in estimate resulted in a CHF 216 million adjustment to the valuation of these positions, which increased revenues in the third quarter of 2005. Compared to the second quarter of 2005, fixed income trading revenues improved by CHF 576 million, or 48%, reflecting higher revenues in interest rate products, the US high grade business and the above-mentioned increase in retained interest fair values, partially offset by weaker results in commercial structured products. Credit markets improved from the second quarter of 2005 resulting in a tightening of credit spreads, and the structured products business environment was mixed with more favorable conditions in the residential mortgage business. During the third quarter of 2005, in line with strategic efforts to grow the residential mortgage business, Institutional Securities announced the acquisition of Select Portfolio Servicing, Inc., a leading nonprime residential mortgage loan servicer. This acquisition closed in October 2005. Equity trading revenues increased by 78% to CHF 1,239 million in the third quarter of 2005 versus the third quarter of 2004. Higher revenues were visible across all major product areas. Revenues in the cash business increased due to stronger secondary and capital markets activity. Market conditions in the convertibles business improved, especially in Europe and Asia, with an increase in volatility and improved conditions in the convertible arbitrage business. The equity derivatives market rebounded in the third quarter of 2005, resulting in higher levels of client activity and strong revenues. Revenues from equity risk taking and positioning rose significantly compared to the third quarter of 2004, reflecting better market conditions and an increased focus on the business in line with the strategy. The prime services business achieved a strong quarter, with significant revenue growth over the third quarter of 2004 due to increases in client balances and higher short-term interest rates. Institutional Securities remained a leader in prime services and ranked second in Global Prime Brokerage in the Institutional Investor inaugural hedge fund service provider survey. Alternative execution services continued to experience strong growth, and the platform was recognized as “best algorithmic trading system” by Financial News in its annual IT Excellence Awards for 2005. Equity trading revenues increased by CHF 405 million, or 49%, compared to the second quarter of 2005, primarily due to stronger revenues in risk taking and positioning, equity derivatives, convertibles and the global cash business, partly offset by declines in the prime services business from the strong second quarter of 2005. Other (including loan portfolio) revenues of CHF 168 million in the third quarter of 2005 were flat compared to the third quarter of 2004, with lower gains on private equity-related investments not managed as part of Alternative Capital, and higher minority interest-related revenues. Compared to the second quarter of 2005, revenues decreased by 53% reflecting lower gains on such private equity-related investments.

The following table presents the results of the Institutional Securities segment:
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Net interest income			713		1,109		786		(36)		(9)		2,731		2,893		(6)
Investment banking			1,126		948		868		19		30		2,701		2,610		3
Commissions and fees			681		583		673		17		1		1,943		2,053		(5)
Trading revenues including realized gains/(losses) from investment securities, net			1,617		433		607		273		166		3,395		2,054		65
Other revenues			166		262		149		(37)		11		710		604		18
Total noninterest revenues			3,590		2,226		2,297		61		56		8,749		7,321		20
Net revenues			4,303		3,335		3,083		29		40		11,480		10,214		12
Provision for credit losses			(41)		(1)		24		–		–		(61)		83		–
Compensation and benefits			2,278		1,897		1,662		20		37		6,245		5,829		7
Other expenses			1,121		1,994		1,118		(44)		0		4,051		2,907		39
Total operating expenses			3,399		3,891		2,780		(13)		22		10,296		8,736		18
Income/(loss) from continuing operations before taxes, minority interests and cumulative effect of accounting changes			945		(555)		279		–		239		1,245		1,395		(11)
Income tax expense/(benefit)			248		(239)		(57)		–		–		225		214		5
Minority interests, net of tax			85		92		44		(8)		93		288		137		110
Income/(loss) from continuing operations before cumulative effect of accounting changes			612		(408)		292		–		110		732		1,044		(30)
Cumulative effect of accounting changes, net of tax			0		0		0		–		–		12		0		–
Net income/(loss)			612		(408)		292		–		110		744		1,044		(29)

The following table presents the revenue details of the Institutional Securities segment:
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Debt underwriting			482		465		448		4		8		1,253		1,317		(5)
Equity underwriting			263		185		114		42		131		586		546		7
Underwriting			745		650		562		15		33		1,839		1,863		(1)
Advisory and other fees			381		298		306		28		25		862		747		15
Total investment banking			1,126		948		868		19		30		2,701		2,610		3
Fixed income			1,770		1,194		1,348		48		31		4,890		4,229		16
Equity			1,239		834		696		49		78		2,999		2,644		13
Total trading			3,009		2,028		2,044		48		47		7,889		6,873		15
Other (including loan portfolio)			168		359		171		(53)		(2)		890		731		22
Net revenues			4,303		3,335		3,083		29		40		11,480		10,214		12

The following table presents key information of the Institutional Securities segment:
									9 months
			3Q2005		2Q2005		3Q2004		2005		2004
Cost/income ratio			79.0%		116.7%		90.2%		89.7%		85.5%
Compensation/revenue ratio			52.9%		56.9%		53.9%		54.4%		57.1%
Pre-tax margin			22.0%		(16.6%)		9.0%		10.8%		13.7%
Return on average allocated capital			18.0%		(13.7%)		10.7%		8.2%		13.5%
Average allocated capital in CHF m			13,568		11,873		10,894		12,043		10,277
Other data excluding minority interests
Cost/income ratio  1) 2)			80.6%		120.0%		91.5%		92.0%		86.7%
Compensation/revenue ratio  1)			54.0%		58.6%		54.8%		55.8%		57.9%
Pre-tax margin 1) 2)			20.4%		(20.0%)		7.7%		8.6%		12.5%
1) Excluding CHF 85 million, CHF 97 million, CHF 48 million, CHF 293 million and CHF 141 million in 3Q2005, 2Q2005, 3Q2004, 9 months 2005 and 9 months 2004, respectively, in minority interest revenues relating primarily to the FIN 46R consolidation.
2) Excluding CHF 0 million, CHF 5 million, CHF 4 million, CHF 5 million and CHF 4 million in 3Q2005, 2Q2005 and 3Q2004, 9 months 2005 and 9 months 2004, respectively, in minority interest expenses relating primarily to the FIN 46R consolidation.

The following table outlines selected balance sheet and other data of the Institutional Securities segment:
			30.09.05		30.06.05		31.12.04		Change in % from 30.06.05		Change in % from 31.12.04
Total assets in CHF bn			898.1		872.3		707.9		3.0		26.9
Number of employees (full-time equivalents)			17,787		16,942		16,498		5		8

Wealth & Asset Management Wealth & Asset Management offers international asset management services to institutional, mutual fund and private investors, provides advisory services for, and invests in, alternative investment vehicles including private equity funds, and provides financial advisory services to high-net-worth individuals and corporate investors. Wealth & Asset Management comprises Credit Suisse Asset Management, Alternative Capital, Private Client Services and Other. Wealth & Asset Management reported net income of CHF 101 million in the third quarter of 2005, an increase of 237% compared to the third quarter of 2004, primarily due to higher revenues in all key business areas. Compared to the second quarter of 2005, which benefited from a particularly high level of private equity gains in Alternative Capital, net income decreased by 59%. For the nine months ended September 30, 2005, net income of CHF 481 million increased by 3% versus the comparable period in 2004, despite somewhat lower year-to-date private equity gains which have varied from quarter to quarter. Wealth & Asset Management third quarter 2005 net revenues totaled CHF 1,250 million, up 55%, compared to the third quarter of 2004. Net revenues (excluding minority interest revenues) rose 28% due to higher revenues in key business areas, including a higher level of investment-related gains in Alternative Capital. Revenues before investment-related gains of CHF 673 million in the third quarter of 2005 were up 17% compared to the third quarter of 2004, due primarily to higher placement fees in the private funds business of Alternative Capital and higher management fees in Credit Suisse Asset Management, reflecting an increase in assets under management. In the third quarter of 2005, investment-related gains more than doubled to CHF 139 million versus the third quarter of 2004. This increase was driven by a higher level of realized and unrealized private equity gains. Compared to the strong second quarter of 2005, investment-related gains decreased by 51%. In the third quarter of 2005, investment-related gains included gains resulting from the sale of private equity investments in Medicine Bow Energy Corp., and Pacific Shores Center and the valuation impact relating to the pending sale of Mueller Water Products, Inc. During the third quarter of 2005, private equity funds managed by Alternative Capital invested or committed over USD 674 million, bringing the year-to-date total to USD 2.2 billion. In the third quarter of 2005, minority interest revenues arising from the consolidation of certain private equity funds primarily under FIN 46R, increased by CHF 264 million to CHF 438 million compared to the third quarter of 2004 and decreased by CHF 187 million compared to the second quarter of 2005. Compared to the third quarter of 2004, total operating expenses rose CHF 82 million, or 14%, to CHF 686 million. This increase was driven by higher compensation and benefits expenses and higher other expenses, reflecting an increase in commissions and professional fees. Compared to the second quarter of 2005, total operating expenses rose 10% due to higher performance-related compensation costs. Wealth & Asset Management reported net new assets of CHF 4.1 billion during the third quarter of 2005. Inflows of CHF 2.5 billion in Private Client Services, due primarily to large new client accounts, and of CHF 1.8 billion in Credit Suisse Asset Management, due primarily to solid business growth in Europe, were the main drivers of this result. These inflows were partly offset by an outflow in Alternative Capital of CHF 0.2 billion. Assets under management as of September 30, 2005, totaled CHF 552.9 billion, up 4.5% compared to June 30, 2005, due to market performance, net new asset inflows and foreign currency exchange rate movements.

The following table presents the results of the Wealth & Asset Management segment:
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Net interest income			11		3		(20)		267		–		32		41		(22)
Asset management and administrative fees			628		599		541		5		16		1,847		1,807		2
Trading revenues including realized gains/(losses) from investment securities, net			37		53		49		(30)		(24)		139		145		(4)
Other revenues			574		915		239		(37)		140		1,738		1,181		47
Total noninterest revenues			1,239		1,567		829		(21)		49		3,724		3,133		19
Net revenues			1,250		1,570		809		(20)		55		3,756		3,174		18
Compensation and benefits			333		275		291		21		14		875		844		4
Other expenses			353		348		313		1		13		1,032		1,020		1
	of which commission and distribution expenses		189		183		164		3		15		558		605		(8)
Total operating expenses			686		623		604		10		14		1,907		1,864		2
Income from continuing operations before taxes and minority interests			564		947		205		(40)		175		1,849		1,310		41
Income tax expense			30		81		8		(63)		275		153		146		5
Minority interests, net of tax			433		621		167		(30)		159		1,215		697		74
Net income			101		245		30		(59)		237		481		467		3

The following table presents the revenue details of the Wealth & Asset Management segment:
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Credit Suisse Asset Management			482		470		403		3		20		1,423		1,368		4
Alternative Capital			121		132		113		(8)		7		385		336		15
Private Client Services			70		61		57		15		23		195		198		(2)
Other			0		0		0		–		–		0		(1)		(100)
Total before investment- related gains			673		663		573		2		17		2,003		1,901		5
Investment-related gains 1)			139		282		62		(51)		124		526		569		(8)
Net revenues before minority interests			812		945		635		(14)		28		2,529		2,470		2
Minority interest revenues 2)			438		625		174		(30)		152		1,227		704		74
Net revenues			1,250		1,570		809		(20)		55		3,756		3,174		18
1) Includes realized and unrealized gains/losses from investments as well as net interest income, trading and other revenues associated with Alternative Capital and Other.
2) Reflects minority interest revenues relating primarily to the FIN 46R consolidation.

The following table presents key information for the Wealth & Asset Management segment:
									9 months
			3Q2005		2Q2005		3Q2004		2005		2004
Cost/income ratio			54.9%		39.7%		74.7%		50.8%		58.7%
Compensation/revenue ratio			26.6%		17.5%		36.0%		23.3%		26.6%
Pre-tax margin			45.1%		60.3%		25.3%		49.2%		41.3%
Return on average allocated capital			25.8%		67.9%		10.3%		46.0%		53.4%
Average allocated capital in CHF m			1,568		1,443		1,160		1,395		1,166
Net new assets in CHF bn
Credit Suisse Asset Management 1)			1.8		(0.2)		0.4		3.2		0.9
Alternative Capital			(0.2)		2.8		1.2		3.2		2.2
Private Client Services			2.5		0.2		(2.1)		5.9		(0.3)
Total net new assets			4.1		2.8		(0.5)		12.3		2.8
Other data excluding minority interests
Cost/income ratio  2) 3)			83.9%		65.5%		94.0%		74.9%		75.2%
Compensation/revenue ratio 2)			41.0%		29.1%		45.8%		34.6%		34.2%
Pre-tax margin  2) 3)			16.1%		34.5%		6.0%		25.1%		24.8%
1) Credit Suisse Asset Management balances for net new assets include assets managed on behalf of other entities within Credit Suisse Group. This differs from the presentation in the overview of Credit Suisse Group, where such assets are eliminated.
2) Excluding CHF 438 million, CHF 625 million, CHF 174 million, CHF 1,227 million and CHF 704 million in 3Q2005, 2Q2005, 3Q2004, 9 months 2005 and 9 months 2004, respectively, in minority interest revenues relating primarily to the FIN 46R consolidation.
3) Excluding CHF 5 million, CHF 4 million, CHF 7 million, CHF 12 million and CHF 7 million in 3Q2005, 2Q2005, 3Q2004, 9 months 2005 and 9 months 2004, respectively, in minority interest expenses relating primarily to the FIN 46R consolidation.

The following table outlines selected balance sheet and other data of the Wealth & Asset Management segment:
in CHF bn			30.09.05		30.06.05		31.12.04		Change in % from 30.06.05		Change in % from 31.12.04
Assets under management
Credit Suisse Asset Management 1)			434.9		419.8		386.7		3.6		12.5
Alternative Capital			45.1		44.2		36.6		2.0		23.2
Private Client Services			72.9		65.3		59.1		11.6		23.4
Total assets under management			552.9		529.3		482.4		4.5		14.6
	of which advisory		198.8		182.7		169.2		8.8		17.5
	of which discretionary		354.1		346.6		313.2		2.2		13.1
Active private equity investments			1.4		1.4		1.1		0.0		27.3
Number of employees (full-time equivalents)			3,007		2,983		2,981		1		1
1) Credit Suisse Asset Management balances for assets under management include assets managed on behalf of other entities within Credit Suisse Group. This differs from the presentation in the overview of Credit Suisse Group, where such assets are eliminated.

Life & Pensions Life & Pensions is a leading provider of life insurance and pension solutions to private and corporate clients. It serves its home market Switzerland and a focused portfolio of international markets in Europe and Asia through multiple distribution channels. In the third quarter of 2005, Life & Pensions reported net income of CHF 96 million, reflecting solid technical results and business volumes. The result included an adverse net impact after tax and policyholder participations of CHF 61 million related to changes in actuarial assumptions and models. These changes included a reduction in the long-term earned rate as a result of the sustained low interest rate environment and an adjustment of the mortality tables to reflect the increased life expectancy in some countries. This adverse impact was partially offset by a CHF 31 million increase in the valuation of deferred tax assets in relation to tax loss carry-forwards created in prior years. As a result, reported net income declined by CHF 68 million from CHF 164 million in the third quarter of 2004. This decline was also attributable to CHF 72 million release of valuation allowances on deferred tax assets in the third quarter of 2004, which was higher than in the third quarter of 2005. The CHF 32 million reduction in year-to-date net income from CHF 370 million in 2004 to CHF 338 million in 2005 was attributable to these factors. Total business volume, which includes deposits from investment-type products as well as gross premiums written from traditional business, grew by 13% in the third quarter 2005 versus the third quarter of 2004 and by 7% in the first nine months of 2005 versus the first nine months of 2004. Overall, total business volume growth reflects a satisfactory sales performance with good contributions from traditional and unit-linked businesses. The significant growth in unit-linked products continued in international markets, such as the UK and Central and Eastern Europe, where volumes grew by more than 20% in the first nine months of 2005 compared to the first nine months of 2004. Gross premiums written in the third quarter of 2005 increased by 10% to CHF 1,843 million compared to the same quarter of 2004. Year-to-date gross premiums written grew by 4% to CHF 8,665 million in the first nine months of 2005, mainly driven by a positive sales performance in the Netherlands, Spain and Japan, as well as in the Swiss group life business. Total net investment income rose by CHF 1,190 million. Net investment income backing traditional life policies increased by CHF 278 million in the third quarter of 2005 compared to the third quarter of 2004. The remaining increase of CHF 912 million primarily reflects the market appreciation of the underlying assets backing unit-linked business which is credited to policyholder account balances. The net investment return backing traditional life policies was 4.9% compared to 4.0% in the corresponding quarter of the previous year. Net current investment return backing traditional life policies declined slightly to 3.6% for the third quarter of 2005 compared to 3.9% in the third quarter of 2004. Net realized gains backing traditional life policies increased by 1.2 percentage points to 1.3% compared to the third quarter of 2004, driven mainly by higher net realizations in equity securities and other investments. Compared to the third quarter of 2004, insurance underwriting and acquisition expenses increased by CHF 205 million, or 164%, resulting primarily from the change in actuarial assumptions and models mentioned above. This resulted in a reduction of intangible assets on the balance sheet triggering lower expected future amortization expenses. Administration expenses increased by 4% to CHF 256 million in the third quarter of 2005 compared to CHF 246 million in the third quarter of 2004. Income tax expense included the increase of CHF 31 million in the valuation of deferred tax assets in relation to tax loss carry-forwards mentioned above, due to the higher expected future taxable earnings. As part of its strategy to strengthen its position in Central and Eastern Europe, Life & Pensions announced the acquisition of the Polish pension fund Dom for a total consideration of approximately CHF 53 million, subject to final regulatory approval.

The following table presents the results of the Life & Pensions segment:
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Gross premiums written			1,843		1,854		1,671		(1)		10		8,665		8,354		4
Net premiums earned			1,840		1,838		1,657		0		11		8,616		8,299		4
Net investment income			2,291		1,747		1,101		31		108		5,580		4,015		39
Other revenues, including fees, and net revenues from deposit business			115		129		157		(11)		(27)		374		365		2
Net revenues			4,246		3,714		2,915		14		46		14,570		12,679		15
Policyholder benefits incurred			2,364		2,021		2,278		17		4		9,667		9,571		1
Investment income credited to policyholder account balances			1,116		661		198		69		464		2,101		709		196
Dividends to policyholders incurred			51		429		(122)		(88)		–		854		556		54
Provision for credit losses			(3)		0		(5)		–		(40)		(4)		(4)		0
Total benefits, dividends and credit losses			3,528		3,111		2,349		13		50		12,618		10,832		16
Insurance underwriting and acquisition expenses			330		145		125		128		164		620		442		40
Administration expenses			256		238		246		8		4		753		741		2
Other expenses			30		45		59		(33)		(49)		98		175		(44)
Restructuring charges			0		0		3		–		(100)		0		8		(100)
Total operating expenses			616		428		433		44		42		1,471		1,366		8
Income from continuing operations before taxes, minority interests and cumulative effect of accounting changes			102		175		133		(42)		(23)		481		481		0
Income tax expense/(benefit)			0		59		(38)		(100)		(100)		127		84		51
Minority interests, net of tax			6		0		5		–		20		16		18		(11)
Income from continuing operations before cumulative effect of accounting changes			96		116		166		(17)		(42)		338		379		(11)
Income/(loss) from discontinued operations, net of tax			0		0		(2)		–		(100)		0		(10)		(100)
Cumulative effect of accounting changes, net of tax			0		0		0		–		–		0		1		(100)
Net income			96		116		164		(17)		(41)		338		370		(9)

The following table presents key information of the Life & Pensions segment:
									9 months
			3Q2005		2Q2005		3Q2004		2005		2004
Total business volume in CHF m 1)			3,728		3,515		3,292		13,706		12,819
Expense ratio 2)			15.7%		10.9%		11.3%		10.0%		9.2%
Return on average allocated capital			7.3%		8.3%		12.0%		8.9%		9.4%
Average allocated capital in CHF m			5,596		5,566		5,653		5,314		5,509
1) Includes gross premiums written and policyholder deposits.
2) Insurance underwriting, acquisition and administration expenses as a percentage of total business volume.

The following table outlines selected balance sheet and other data of the Life & Pensions segment:
			30.09.05		30.06.05		31.12.04		Change in % from 30.06.05		Change in % from 31.12.04
Assets under management (discretionary) in CHF bn 1)			125.1		122.5		115.5		2.1		8.3
Technical provisions in CHF bn			119.0		117.0		110.5		1.7		7.7
Number of employees (full-time equivalents)			6,987		7,025		6,524		(1)		7
1) Based on savings-related provisions for policyholders plus off-balance sheet assets.

The following table presents the investment income of the Life & Pensions segment:
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Net current investment income			1,000		1,017		1,010		(2)		(1)		3,008		3,058		(2)
	of which backing traditional life policies		911		942		943		(3)		(3)		2,761		2,861		(3)
	of which backing unit-linked liabilities general account		89		75		67		19		33		247		197		25
Realized gains/(losses), net			1,291		730		91		77		–		2,572		957		169
	of which backing traditional life policies		332		227		22		46		–		937		617		52
	of which backing unit-linked liabilities general account		959		503		69		91		–		1,635		340		381
Net investment income			2,291		1,747		1,101		31		108		5,580		4,015		39
Investment income separate account			274		120		86		128		219		531		39		–

The following table presents the investment return of the Life & Pensions segment:
									9 months
			3Q2005		2Q2005		3Q2004		2005		2004
Net current investment return backing traditional life policies			3.6%		3.8%		3.9%		3.7%		3.9%
Realized gains/(losses) backing traditional life policies			1.3%		0.9%		0.1%		1.3%		0.8%
Net investment return backing traditional life policies			4.9%		4.7%		4.0%		5.0%		4.7%
Average assets backing traditional life policies in CHF bn			102.3		99.0		96.8		99.4		97.8

Non-Life Non-Life provides insurance products to private clients and small and medium-sized corporate clients. It is the leading provider in the Swiss market and is established in key markets in North America and Europe. The insurance industry experienced significant losses in the third quarter of 2005 as a result of a series of natural catastrophes. Non-Life reported net income of CHF 190 million in the third quarter of 2005 compared to CHF 198 million in the third quarter of 2004. The current period result was negatively affected by losses relating to the unusually heavy rainfall and flooding in Switzerland in August, which had a negative impact of CHF 72 million after tax, net of reinsurance (CHF 92 million before tax). Net income benefited from a release of CHF 132 million of the valuation allowance on deferred tax assets primarily in relation to tax loss carry-forwards created in prior years, which was higher than the CHF 59 million recorded in the third quarter of 2004. The impact of the hurricanes in the United States on Non-Life results was minimal due to the decision to exit certain risk exposures in recent years. Net income increased from CHF 383 million in the first nine months of 2004 to CHF 452 million in the first nine months of 2005 reflecting the business’ ongoing focus on profitable underwriting. Net premiums earned in the third quarter of 2005 grew by CHF 153 million, or 6%, to CHF 2,683 million compared to the same period of 2004. In the first nine months of 2005, net premiums earned remained stable at CHF 8,029 million compared to the previous year. The benefits of tariff increases effective in 2005 in Switzerland and Spain were partly offset by market pressure in Germany, where the business is implementing measures to address the increased competition. Net investment return in the third quarter of 2005 was 4.4%, compared to 4.3% in the same period of 2004. Net current investment return decreased slightly from 3.7% in the second quarter of 2005 to 3.4% in the third quarter of 2005. Net realized gains improved by 0.4 percentage points to 1.0% compared to the third quarter of 2004 due mainly to higher realizations in equity securities. The combined ratio in the third quarter of 2005 was 0.5 percentage points higher at 101.8% compared to the same quarter of 2004; the increase was more than accounted for by the 3.4 percentage points directly attributable to the floods in Switzerland. In the first nine months of 2005, the combined ratio was 98.8%, an improvement of 1.0 percentage point versus the same period of the previous year. The expense ratio decreased by 0.4 percentage points to 26.3% in the third quarter of 2005 from the third quarter of 2004, and by 0.5 percentage points to 25.0% in the first nine months of 2005. Continued strict cost management also led to a 1% decrease in administration expenses to CHF 300 million versus the third quarter of 2004. Insurance underwriting and acquisition expenses increased by 9% to CHF 405 million versus the third quarter of 2004, due primarily to the overall increase in net premiums earned, as well as commercial initiatives. The income tax benefit of CHF 57 million recorded in the third quarter of 2005 included the release of the valuation allowance on deferred tax assets in the amount of CHF 132 million primarily in relation to tax loss carry-forwards created in prior years due to the higher expected future taxable earnings.

The following table presents the results of the Non-Life segment:
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Gross premiums written			1,807		2,013		1,809		(10)		0		9,199		9,333		(1)
Reinsurance ceded			(45)		(59)		(109)		(24)		(59)		(291)		(377)		(23)
Change in provisions for unearned premiums			921		689		830		34		11		(879)		(978)		(10)
Net premiums earned			2,683		2,643		2,530		2		6		8,029		7,978		1
Net investment income			295		270		263		9		12		864		860		0
Other revenues including fees			51		66		60		(23)		(15)		164		98		67
Net revenues			3,029		2,979		2,853		2		6		9,057		8,936		1
Claims and annuities incurred			2,024		1,862		1,888		9		7		5,921		5,928		0
Dividends to policyholders incurred			87		123		66		(29)		32		300		253		19
Provision for credit losses			1		0		1		–		0		1		0		–
Total claims, dividends and credit losses			2,112		1,985		1,955		6		8		6,222		6,181		1
Insurance underwriting and acquisition expenses			405		379		372		7		9		1,158		1,116		4
Administration expenses			300		273		304		10		(1)		851		917		(7)
Other expenses			49		60		19		(18)		158		155		110		41
Restructuring charges			0		1		11		(100)		(100)		1		72		(99)
Total operating expenses			754		713		706		6		7		2,165		2,215		(2)
Income from continuing operations before taxes and minority interests			163		281		192		(42)		(15)		670		540		24
Income tax expense/(benefit)			(57)		125		(2)		–		–		136		45		202
Minority interests, net of tax			15		17		8		(12)		88		46		26		77
Income from continuing operations			205		139		186		47		10		488		469		4
Income/(loss) from discontinued operations, net of tax			(15)		(2)		12		–		–		(36)		(86)		(58)
Net income			190		137		198		39		(4)		452		383		18

The following table presents key information of the Non-Life segment:
									9 months
			3Q2005		2Q2005		3Q2004		2005		2004
Combined ratio			101.8%		95.1%		101.3%		98.8%		99.8%
Expense ratio 1)			26.3%		24.7%		26.7%		25.0%		25.5%
Claims ratio 2)			75.5%		70.4%		74.6%		73.8%		74.3%
Return on average allocated capital			42.2%		31.8%		36.8%		33.9%		24.5%
Average allocated capital in CHF m			1,943		1,940		2,241		1,958		2,226
1) Insurance underwriting, acquisition and administration expenses as a percentage of net premiums earned.
2) Claims and annuities incurred as a percentage of net premiums earned.

The following table outlines selected balance sheet and other data of the Non-Life segment:
			30.09.05		30.06.05		31.12.04		Change in % from 30.06.05		Change in % from 31.12.04
Assets under management (discretionary) in CHF bn			27.8		27.4		24.1		1.5		15.4
Technical provisions in CHF bn			27.4		28.2		25.0		(2.8)		9.7
Number of employees (full-time equivalents)			12,456		12,425		12,844		0		(3)

The following table presents the investment income of the Non-Life segment:
													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Net current investment income			226		238		226		(5)		0		677		664		2
Realized gains/(losses), net			69		32		37		116		86		187		196		(5)
Net investment income			295		270		263		9		12		864		860		0

The following table presents the investment return of the Non-Life segment:
									9 months
			3Q2005		2Q2005		3Q2004		2005		2004
Net current investment return			3.4%		3.7%		3.7%		3.5%		3.6%
Realized gains/(losses), net			1.0%		0.5%		0.6%		1.0%		1.1%
Net investment return			4.4%		4.2%		4.3%		4.5%		4.7%
Average assets in CHF bn			26.8		25.7		24.4		25.4		24.6

Investments for Life & Pensions and Non-Life Winterthur’s investment portfolios are managed according to a defined process and set of guidelines in order to meet the diversification, credit quality, yield and liquidity requirements of policy liabilities. Investments include debt instruments such as government and corporate bonds, loans, and mortgage loans, real estate, equities and alternative assets.

The following table illustrates the investment portfolio of Life & Pensions and Non-Life by investment type:
			30.09.05				31.12.04
in CHF m			Book value		Fair value		Book value		Fair value
Debt securities - held-to-maturity			10,074		10,661		10,141		10,336
Debt securities - available-for-sale			79,656		79,656		70,937		70,937
Equity securities - available-for-sale			10,177		10,177		5,950		5,950
Debt securities - trading			1,805		1,805		1,771		1,771
Equity securities - trading			14,477		14,477		10,818		10,818
Mortgage loans			9,985		9,985		10,028		10,028
Loans			5,266		5,266		5,063		5,063
Real estate			8,569		8,810		8,417		8,825
Other investments			4,269		4,269		3,562		3,562
Investments, general account			144,278		145,106		126,687		127,290
Investments, separate account			5,596		5,596		4,490		4,490
Total investments			149,874		150,702		131,177		131,780
	of which Life & Pensions		123,601		124,233		109,857		110,224
	of which Non-Life		26,273		26,469		21,320		21,556
Debt and equity securities - trading and loans include CHF 15,774 million (December 31, 2004: CHF 12,358 million) held to back unit-linked liabilities in the general account.

The following table illustrates held-to-maturity and available-for-sale securities of Life & Pensions and Non-Life:
			30.09.05								31.12.04
in CHF m			Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Debt securities - held-to-maturity			10,074		587		–		10,661		10,141		198		3		10,336
Debt securities - available-for-sale			75,436		4,458		238		79,656		67,914		4,035		1,012		70,937
Equity securities - available-for-sale			9,067		1,178		68		10,177		5,330		686		66		5,950
Securities - available-for-sale			84,503		5,636		306		89,833		73,244		4,721		1,078		76,887

Condensed consolidated financial statements – Credit Suisse Group

Consolidated statements of income (unaudited)

													9 months
in CHF m			3Q2005		2Q2005		3Q2004		Change in % from 2Q2005		Change in % from 3Q2004		2005		2004		Change in % from 2004
Interest and dividend income			10,445		10,123		7,621		3		37		29,382		23,257		26
Interest expense			(7,624)		(6,821)		(4,849)		12		57		(20,204)		(14,047)		44
Net interest income			2,821		3,302		2,772		(15)		2		9,178		9,210		0
Commissions and fees			3,797		3,483		3,307		9		15		10,519		10,288		2
Trading revenues			2,953		915		931		223		217		5,696		3,159		80
Realized gains/(losses) from investment securities, net			373		441		128		(15)		191		1,240		854		45
Insurance net premiums earned			4,522		4,373		4,187		3		8		16,644		16,277		2
Other revenues			1,044		1,587		610		(34)		71		3,396		2,694		26
Total noninterest revenues			12,689		10,799		9,163		18		38		37,495		33,272		13
Net revenues			15,510		14,101		11,935		10		30		46,673		42,482		10
Policyholder benefits, claims and dividends			5,681		5,111		4,308		11		32		18,897		17,017		11
Provision for credit losses			(48)		(29)		38		66		–		(113)		205		–
Total benefits, claims and credit losses			5,633		5,082		4,346		11		30		18,784		17,222		9
Insurance underwriting, acquisition and administration expenses			1,292		1,038		1,043		24		24		3,389		3,207		6
Banking compensation and benefits			3,595		3,098		2,802		16		28		9,989		9,317		7
Other expenses			2,109		3,041		2,075		(31)		2		6,941		5,894		18
Restructuring charges			0		1		13		(100)		(100)		1		77		(99)
Total operating expenses			6,996		7,178		5,933		(3)		18		20,320		18,495		10
Income from continuing operations before taxes, minority interests and cumulative effect of accounting changes			2,881		1,841		1,656		56		74		7,569		6,765		12
Income tax expense			437		213		112		105		290		1,280		1,123		14
Minority interests, net of tax			510		708		205		(28)		149		1,519		872		74
Income from continuing operations before cumulative effect of accounting changes			1,934		920		1,339		110		44		4,770		4,770		0
Income/(loss) from discontinued operations, net of tax			(16)		(1)		12		–		–		(37)		(95)		(61)
Cumulative effect of accounting changes, net of tax			0		0		0		–		–		14		(6)		–
Net income			1,918		919		1,351		109		42		4,747		4,669		2

Consolidated statements of income – continued (unaudited)

									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Basic earnings per share, in CHF
Income from continuing operations before cumulative effect of accounting changes			1.68		0.82		1.15		4.18		4.07
Income/(loss) from discontinued operations, net of tax			(0.01)		0.00		0.01		(0.03)		(0.08)
Cumulative effect of accounting changes, net of tax			0.00		0.00		0.00		0.01		(0.01)
Net income available for common shares			1.67		0.82		1.16		4.16		3.98
Diluted earnings per share, in CHF
Income from continuing operations before cumulative effect of accounting changes			1.64		0.79		1.14		4.07		3.99
Income/(loss) from discontinued operations, net of tax			(0.01)		0.00		0.01		(0.03)		(0.08)
Cumulative effect of accounting changes, net of tax			0.00		0.00		0.00		0.01		0.00
Net income available for common shares			1.63		0.79		1.15		4.05		3.91

Consolidated balance sheets (unaudited)

in CHF m			30.09.05		30.06.05		31.12.04		Change in % from 30.06.05		Change in % from 31.12.04
Assets
Cash and due from banks			27,127		31,364		25,648		(14)		6
Interest-bearing deposits with banks			5,806		5,311		4,947		9		17
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions			336,658		320,414		267,169		5		26
Securities received as collateral			24,183		24,674		20,289		(2)		19
Trading assets (of which CHF 142,883 m, CHF 156,073 m and CHF 110,047 m encumbered)			433,617		423,678		346,469		2		25
Investment securities (of which CHF 2,434 m, CHF 2,499 m and CHF 2,346 m encumbered)			121,009		112,496		100,365		8		21
Other investments			13,961		12,905		13,288		8		5
Real estate held for investment			9,111		9,163		8,970		(1)		2
Loans, net of allowance for loan losses of CHF 2,445 m, CHF 2,733 m and CHF 3,038 m			202,072		197,318		184,399		2		10
Premises and equipment			7,314		7,359		7,231		(1)		1
Goodwill			12,720		12,662		11,564		0		10
Intangible assets			3,320		3,549		3,689		(6)		(10)
Assets held for separate accounts			10,114		7,019		4,490		44		125
Other assets (of which CHF 6,984 m, CHF 6,302 m and CHF 4,785 m encumbered)			119,209		119,254		90,966		0		31
Discontinued operations - assets			534		3		1		–		–
Total assets			1,326,755		1,287,169		1,089,485		3		22
Liabilities and shareholders' equity
Deposits			360,892		358,005		299,341		1		21
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions			303,222		290,287		239,724		4		26
Obligation to return securities received as collateral			24,183		24,674		20,289		(2)		19
Trading liabilities			201,663		192,154		150,130		5		34
Short-term borrowings			15,590		14,594		15,343		7		2
Provisions from the insurance business			149,259		147,847		137,161		1		9
Long-term debt			131,090		121,095		106,261		8		23
Liabilities held for separate accounts			10,114		7,019		4,489		44		125
Other liabilities			83,907		85,713		74,295		(2)		13
Discontinued operations - liabilities			685		11		1		–		–
Minority interests			7,516		7,616		6,178		(1)		22
Total liabilities			1,288,121		1,249,015		1,053,212		3		22
Common shares			607		607		607		0		0
Additional paid-in capital			22,590		23,175		23,435		(3)		(4)
Retained earnings			23,481		21,563		20,501		9		15
Treasury shares, at cost			(6,063)		(5,065)		(4,547)		20		33
Accumulated other comprehensive income/(loss)			(1,981)		(2,126)		(3,723)		(7)		(47)
Total shareholders' equity			38,634		38,154		36,273		1		7
Total liabilities and shareholders' equity			1,326,755		1,287,169		1,089,485		3		22

Consolidated statements of changes in shareholders’ equity (unaudited)

9 months, in CHF m, except common shares outstanding			Common shares outstanding		Common shares		Additional paid-in capital		Retained earnings		Common shares in treasury at cost		Accumulated other comprehen- sive income (loss)		Total
Balance January 1, 2004			1,130,362,948		1,195		23,586		14,873		(3,144)		(2,519)		33,991
Net income									4,669						4,669
Other comprehensive income, net of tax													(260)		(260)
Issuance of common shares			16,264,412		10		16								26
Issuance of treasury shares			269,992,222				(34)				11,971				11,937
Repurchase of treasury shares			(327,941,656)								(14,571)				(14,571)
Share-based compensation			20,714,342				(395)				1,264				869
Repayment out of share capital 1)					(599)		8								(591)
Other							30								30
Balance September 30, 2004			1,109,392,268		606		23,211		19,542		(4,480)		(2,779)		36,100
Balance January 1, 2005			1,110,819,481	2)	607		23,435		20,501		(4,547)		(3,723)		36,273
Net income									4,747						4,747
Other comprehensive income, net of tax													1,742		1,742
Issuance of common shares			171,374				4								4
Issuance of treasury shares			167,096,611				10				8,614				8,624
Repurchase of treasury shares			(226,838,313)	3)							(11,730)				(11,730)
Share-based compensation			33,929,271				(859)				1,600				741
Cash dividends paid									(1,767)						(1,767)
Balance September 30, 2005			1,085,178,424	4)	607		22,590		23,481		(6,063)		(1,981)		38,634
1) On April 30, 2004, the shareholders of Credit Suisse Group approved a par value reduction of CHF 0.50 per share, in lieu of a dividend, which was paid out on July 12, 2004.
2) At par value CHF 0.50 each, fully paid, net of 103,086,736 treasury shares. In addition to the treasury shares, a maximum of 253,744,616 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders.
3) Includes 23,552,200 shares repurchased in connection with Credit Suisse Group's share buy back program.
4) At par value CHF 0.50 each, fully paid, net of 128,899,167 treasury shares. In addition to the treasury shares, a maximum of 252,196,042 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders.

Comprehensive income (unaudited)

									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Net income			1,918		919		1,351		4,747		4,669
Other comprehensive income/(loss)			145		1,089		234		1,742		(260)
Comprehensive income			2,063		2,008		1,585		6,489		4,409

Consolidated statements of cash flows (unaudited)

			9 months
in CHF m			2005		2004
Operating activities of continuing operations
Net income			4,747		4,669
(Income)/loss from discontinued operations, net of tax			37		95
Income from continuing operations			4,784		4,764
Adjustments to reconcile net income to net cash provided by/(used in) operating activities of continuing operations
Impairment, depreciation and amortization			1,165		1,262
Provision for credit losses			(113)		205
Deferred tax provision			22		(136)
Restructuring charges			1		77
Change in technical provisions from the insurance business			9,840		7,276
(Gain)/loss from investment securities			(1,240)		(854)
Share of net income from equity method investments			(243)		(176)
Cumulative effect of accounting changes, net of tax			(14)		6
Receivables from the insurance business			325		1,024
Payables from the insurance business			(1,962)		(3,491)
Trading assets and liabilities			(11,206)		(23,745)
Deferred policy acquisition costs			(239)		(416)
(Increase)/decrease in accrued interest, fees receivable and other assets			(32,190)		(17,779)
Increase/(decrease) in accrued expenses and other liabilities			10,255		8,708
Other, net			(1,799)		(566)
Total adjustments			(27,398)		(28,605)
Net cash provided by/(used in) operating activities of continuing operations			(22,614)		(23,841)
Investing activities of continuing operations
(Increase)/decrease in interest-bearing deposits with banks			(135)		(2,890)
(Increase)/decrease in central bank funds sold, securities purchased under resale agreements and securities borrowing transactions			(33,922)		(26,243)
Purchase of investment securities			(58,199)		(42,467)
Proceeds from sale of investment securities			35,699		27,915
Maturities of investment securities			11,497		17,504
Investments in subsidiaries and other investments			(2,434)		(4,159)
Proceeds from sale of other investments			1,695		3,531
(Increase)/decrease in loans			(15,177)		(11,950)
Proceeds from sales of loans			2,868		535
Capital expenditures for premises and equipment and intangible assets			(717)		(674)
Proceeds from sale of premises and equipment and intangible assets			53		66
Other, net			33		301
Net cash provided by/(used in) investing activities of continuing operations			(58,739)		(38,531)

Consolidated statements of cash flows – continued (unaudited)

			9 months
in CHF m			2005		2004
Financing activities of continuing operations
Increase/(decrease) in deposits			41,665		41,006
Increase/(decrease) in short-term borrowings			(292)		2,432
Increase/(decrease) in central bank funds purchased, securities sold under repurchase agreements and securities lending transactions			32,705		7,559
Issuances of long-term debt			33,600		27,451
Repayments of long-term debt			(22,182)		(8,813)
Issuances of common shares			4		26
Issuances of treasury shares			8,624		11,937
Repurchase of treasury shares			(11,730)		(14,571)
Dividends paid/capital repayments (including minority interest and trust preferred securities)			(1,794)		(609)
Other, net			178		(1,627)
Net cash provided by/(used in) financing activities of continuing operations			80,778		64,791
Effect of exchange rate changes on cash and due from banks			2,054		384
Discontinued operations
Net cash provided by discontinued operations			0		(12)
Proceeds from sale of stock by subsidiaries			0		38
Net increase/(decrease) in cash and due from banks			1,479		2,829
Cash and due from banks at beginning of period			25,648		24,799
Cash and due from banks at end of period			27,127		27,628

Supplemental disclosures of cash flow information (unaudited)
			9 months
in CHF m			2005		2004
Cash paid during the year for income taxes			1,678		1,254
Cash paid during the year for interest			19,295		13,802
Assets acquired and liabilities assumed in business acquisitions
Fair value of assets acquired			68		11
Fair value of liabilities assumed			37		1
Assets and liabilities sold in business divestitures
Assets sold			0		865
Liabilities sold			0		813

Summary of significant accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements of Credit Suisse Group (the Group) are prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) and are stated in Swiss francs (CHF). For a description of the Group’s significant accounting policies, see note 1 of the consolidated US GAAP financial statements for the year ended December 31, 2004, included in Credit Suisse Group’s Annual Report 2004. Certain financial information that is normally included in annual financial statements prepared in accordance with US GAAP but not required for interim reporting purposes has been condensed or omitted. Certain reclassifications have been made to the prior period’s financial statements to conform to the current period’s presentation. These condensed consolidated financial statements reflect, in the opinion of management, all adjustments that are necessary for a fair presentation of the condensed consolidated financial statements for the interim periods presented. The results of operations for interim periods are not necessarily indicative of results for the entire year. These condensed consolidated financial statements should be read in conjunction with the consolidated US GAAP financial statements and notes thereto for the year ended December 31, 2004. In preparing these condensed consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Share-based compensation Through December 31, 2002, the Group accounted for its employee share-based compensation program under the intrinsic value method in accordance with Accounting Principles Board (APB) Opinion No. 25, “Accounting for Stock Issued to Employees” (APB 25). Under APB 25, no compensation expense was generally recognized for share options, as they were granted at an exercise price equal to the market price of the Group’s shares on the grant date. Effective January 1, 2003, the Group adopted, using the prospective method, the fair value recognition provisions of Statement of Financial Accounting Standards (SFAS) No. 123, “Accounting for Stock-Based Compensation” (SFAS 123), as amended by SFAS No. 148, “Accounting for Stock-Based Compensation - Transition and Disclosure” (SFAS 148). Under the prospective method, all new equity-based compensation awards granted to employees and existing awards modified on or after January 1, 2003, are accounted for at fair value. Compensation expense is measured at the grant or modification date based on the fair value of the award and is recognized in the statement of income over the required service period on a straight-line basis. Refer to “New Accounting Pronouncements” below for a discussion of the Group’s adoption of the new share-based payment accounting standard effective January 1, 2005.

The following table presents net income and basic and diluted earnings per share as reported, and as if all outstanding awards were accounted for at fair value under SFAS 123 for the periods prior to January 1, 2005.
in CHF m, except the per share amounts			3Q2004		9 months 2004
Net income - as reported			1,351		4,669
Add: Share-based compensation expense included in reported net income, net of related tax effects			188		544
Deduct: Total share-based compensation expense determined under the fair value method for all awards vested during the year, net of related tax effects			(187)		(547)
Net income - pro forma			1,352		4,666
Net income available for common shares for basic EPS - pro forma			1,305		4,525
Net income available for common shares for diluted EPS - pro forma			1,381		4,746
Basic earnings per share - as reported			1.16		3.98
Basic earnings per share - pro forma			1.16		3.98
Diluted earnings per share - as reported			1.15		3.91
Diluted earnings per share - pro forma			1.16		3.91

NEW ACCOUNTING PRONOUNCEMENTS In December 2004, the Financial Accounting Standards Board (FASB) issued SFAS No. 123 (Revised 2004), “Share-Based Payment” (SFAS 123R). SFAS 123R is effective for annual reporting periods beginning after June 15, 2005. The Group had previously adopted the recognition provisions of SFAS 123, as discussed above. Under SFAS 123R, a company that has previously adopted the recognition provisions of SFAS 123 must adopt the revised standard using the modified prospective method and may also choose to apply the modified retrospective method to previous reporting periods. The Group early adopted the new standard as of January 1, 2005, applying the modified prospective method. The most significant accounting implications of the adoption of SFAS 123R for the Group were as follows: (i) inclusion of forfeitures in the estimate of compensation expense determined at the grant date rather than as they occur. The Group recorded a cumulative adjustment of approximately CHF 14 million during the first quarter of 2005 to reverse the expense previously recognized on all outstanding unvested awards expected to be forfeited. For new grants after January 1, 2005, forfeitures will be included in the initial estimation of the compensation expense at the grant date; (ii) recognition of compensation cost for all outstanding unvested awards as of January 1, 2005, that were previously accounted for under APB 25 and for which no expense was previously recognized, based on the original grant-date fair value of each award over the remaining requisite service period of the respective award. The recognition of this expense was not material; and (iii) adoption of changes to the presentation of the statement of cash flows in accordance with the revised standard. In December 2003, the American Institute of Certified Public Accountants (AICPA) issued Statement of Position (SOP) 03-3, “Accounting for Certain Loans or Debt Securities Acquired in a Transfer” (SOP 03-3). SOP 03-3 provides guidance on the accounting for differences between contractual and expected cash flows from the purchaser’s initial investment in loans or debt securities acquired in a transfer, if those differences are attributable, at least in part, to credit quality. Among other things, SOP 03-3: (i) prohibits the recognition of the excess of contractual cash flows as an adjustment of yield, loss accrual or valuation allowance at the time of purchase; (ii) requires that subsequent increases in expected cash flows be recognized prospectively through an adjustment of yield; and (iii) requires that subsequent decreases in expected cash flows be recognized as an impairment. In addition, SOP 03-3 prohibits the creation or carrying over of a valuation allowance in the initial accounting of all loans and debt securities within its scope that are acquired in a transfer. SOP 03-3 became effective for loans or debt securities acquired in fiscal years beginning after December 15, 2004. The adoption of SOP 03-3 did not have a material impact on the Group’s financial position, results of operations or cash flows. STANDARDS TO BE ADOPTED IN FUTURE PERIODS In May 2005, the FASB issued SFAS No. 154, “Accounting Changes and Error Corrections, a replacement of APB Opinion No. 20, ‘Accounting Changes’ (APB 20) and FASB Statement No. 3, ‘Reporting Accounting Changes in Interim Financial Statements (an Amendment of APB Opinion No. 28, ‘Interim Financial Reporting’)’” (SFAS 154). SFAS 154 requires retrospective application, unless impracticable, to prior periods’ financial statements for voluntary changes in accounting principles and changes required by an accounting pronouncement in the unusual circumstances in which the pronouncement does not include specific transition provisions. The statement also requires that a change in depreciation, amortization, or depletion method for long-lived, non-financial assets should be accounted for as a change in accounting estimate effected by a change in accounting principle. The guidance for reporting the correction of an error in previously issued financial statements and the change of an accounting estimate will not change from APB 20. SFAS 154 is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005. There will be no immediate impact on the Group’s financial condition, results of operations or cash flows upon adoption of SFAS 154. In June 2005, the FASB ratified Emerging Issues Task Force (EITF) Issue No. 04-5, “Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights” (EITF 04-5). EITF 04-5 provides a framework for evaluating whether a general partner or a group of general partners controls a limited partnership and therefore should consolidate it. EITF 04-5 states that the presumption of general partner control would be overcome only when the limited partners have substantive “kick-out rights” or “participating rights.” These rights would allow the limited partners to dissolve or liquidate the partnership or otherwise remove the general partner “without cause” and to effectively participate in significant decisions made in the ordinary course of the partnership business. EITF 04-5 is effective immediately for all newly formed limited partnerships and for existing limited partnership agreements that are modified. The guidance will be effective for existing unmodified partnership agreements no later than the beginning of the first reporting period in fiscal years beginning after December 15, 2005. The implementation of EITF 04-5 has not materially impacted the Group with respect to new partnerships formed or partnership agreements modified since June 2005. The Group is still evaluating the impact of EITF 04-5 with respect to unmodified partnerships which existed prior to June 2005. As a result of the ratification of EITF 04-5, EITF Issue No. 96-16, “Investor’s Accounting for an Investee When the Investor Has a Majority of the Voting Interest but the Minority Shareholder or Shareholders Have Certain Approval or Veto Rights” (EITF 96-16) was updated and FASB Staff Position (FSP) SOP No. 78-9-1, “Interaction of AICPA Statement of Position 78-9 and EITF Issue No. 04-5” (FSP SOP 78-9-1) was issued. FSP SOP 78-9-1 is effective for all new partnerships formed and for existing partnership agreements modified after June 29, 2005. Additionally, FSP SOP 78-9-1 will be effective for existing unmodified partnership agreements no later than the beginning of the first reporting period in fiscal years beginning after December 15, 2005. The Group is currently evaluating the impact of FSP SOP 78-9-1 and the impact of the changes to EITF 96-16. In September 2005, the AICPA issued SOP 05-1, “Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts” (SOP 05-1). SOP 05-1 provides guidance on accounting by insurance enterprises for deferred acquisition costs on internal replacements of insurance and investment contracts other than those specifically described in SFAS No. 97, “Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments” (SFAS 97). SOP 05-1 defines an internal replacement as a modification in product benefits, features, rights, or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract. Modifications that result from the election by the contract holder that were within the original contract are not internal replacements subject to this SOP. SOP 05-1 is effective for internal replacements occurring in fiscal years beginning after December 15, 2006. The Group is currently evaluating the impact of adopting SOP 05-1. In August 2005, the FASB issued three exposure drafts that address accounting for transfers of financial instruments. These proposals would, among other things, amend SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities, a replacement of FASB Statement No. 125". The proposed guidance from the FASB or future guidance from either the FASB or other standard setters may change the current interpretation of the criteria for what is considered a qualifying special-purpose entity ("QSPE") and require companies to account for transactions as secured financings that currently are accounted for as sales. The proposals have effective dates potentially as early as January 1, 2006. The requirements of the proposed amendments will be re-deliberated by the FASB and, therefore, are subject to change. We cannot predict what the final amendments will provide. Segment Reporting

Net revenues
									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Private Banking			2,021		1,810		1,644		5,743		5,453
Corporate & Retail Banking			879		858		808		2,597		2,545
Institutional Securities 1)			4,303		3,335		3,083		11,480		10,214
Wealth & Asset Management 2)			1,250		1,570		809		3,756		3,174
Life & Pensions			4,246		3,714		2,915		14,570		12,679
Non-Life			3,029		2,979		2,853		9,057		8,936
Corporate Center			(218)		(165)		(177)		(530)		(519)
Credit Suisse Group			15,510		14,101		11,935		46,673		42,482
1) Including CHF 85 million, CHF 97 million, CHF 48 million, CHF 293 million and CHF 141 million in 3Q2005, 2Q2005, 3Q2004, 9 months 2005 and 9 months 2004, respectively, in minority interest revenues relating primarily to the FIN 46R consolidation.
2) Including CHF 438 million, CHF 625 million, CHF 174 million, CHF 1,227 million and CHF 704 million in 3Q2005, 2Q2005 and 3Q2004, 9 months 2005 and 9 months 2004, respectively, in minority interest revenues relating primarily to the FIN 46R consolidation.

Income/(loss) from continuing operations before taxes, minority interests and cumulative effect of accounting changes
									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Private Banking			892		710		652		2,451		2,307
Corporate & Retail Banking			338		354		261		1,042		843
Institutional Securities 1)			945		(555)		279		1,245		1,395
Wealth & Asset Management 2)			564		947		205		1,849		1,310
Life & Pensions			102		175		133		481		481
Non-Life			163		281		192		670		540
Corporate Center			(123)		(71)		(66)		(169)		(111)
Credit Suisse Group			2,881		1,841		1,656		7,569		6,765
1) Including CHF 85 million, CHF 92 million, CHF 44 million, CHF 288 million and CHF 137 million in 3Q2005, 2Q2005, 3Q2004, 9 months 2005 and 9 months 2004, respectively, in minority interest revenues/expenses relating primarily to the FIN 46R consolidation.
2) Including CHF 433 million, CHF 621 million, CHF 167 million, CHF 1,215 million and CHF 697 million in 3Q2005, 2Q2005, 3Q2004, 9 months 2005 and 9 months 2004, respectively, in minority interest revenues/expenses relating primarily to the FIN 46R consolidation.

Net income/(loss)
									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Private Banking			728		581		511		1,994		1,857
Corporate & Retail Banking			264		277		199		815		644
Institutional Securities			612		(408)		292		744		1,044
Wealth & Asset Management			101		245		30		481		467
Life & Pensions			96		116		164		338		370
Non-Life			190		137		198		452		383
Corporate Center			(73)		(29)		(43)		(77)		(96)
Credit Suisse Group			1,918		919		1,351		4,747		4,669

Total assets
in CHF m			30.09.05		31.12.04
Private Banking			221,986		188,697
Corporate & Retail Banking			111,351		99,469
Institutional Securities			898,134		707,918
Wealth & Asset Management			14,734		12,664
Life & Pensions and Non-Life			178,150		165,275
Corporate Center			(97,600)		(84,538)
Credit Suisse Group			1,326,755		1,089,485

Interest and dividend income and interest expense

The following table sets forth the details of interest and dividend income and interest expense:
									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Interest income on loans			1,696		1,654		1,482		4,918		4,597
Interest income on investment securities			965		957		906		2,849		2,863
Dividend income from investment securities			44		95		26		183		134
Interest and dividend income on trading assets			3,459		3,711		2,893		10,431		9,740
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions			3,367		2,916		1,843		8,731		4,719
Other			914		790		471		2,270		1,204
Total interest and dividend income			10,445		10,123		7,621		29,382		23,257
Interest expense on deposits			(2,003)		(1,728)		(1,108)		(5,106)		(2,795)
Interest expense on short-term borrowings			(77)		(59)		(53)		(251)		(180)
Interest expense on trading liabilities			(1,164)		(1,270)		(1,177)		(3,577)		(4,373)
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions			(3,072)		(2,673)		(1,555)		(7,864)		(4,009)
Interest expense on long-term debt			(1,053)		(908)		(794)		(2,802)		(2,244)
Other			(255)		(183)		(162)		(604)		(446)
Total interest expense			(7,624)		(6,821)		(4,849)		(20,204)		(14,047)
Net interest income			2,821		3,302		2,772		9,178		9,210

Trading activities

The following table sets forth the details of trading-related revenues:
									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Interest rate products			472		(134)		56		1,222		612
Equity/index-related products			2,040		814		575		3,486		1,703
Foreign exchange products			460		256		240		1,078		898
Other			(19)		(21)		60		(90)		(54)
Trading revenues			2,953		915		931		5,696		3,159
Interest and dividend income on trading assets			3,459		3,711		2,893		10,431		9,740
Interest expense on trading liabilities			(1,164)		(1,270)		(1,177)		(3,577)		(4,373)
Trading interest income, net			2,295		2,441		1,716		6,854		5,367
Total trading-related revenues			5,248		3,356		2,647		12,550		8,526

The following table summarizes the details of trading assets and liabilities:
in CHF m			30.09.05		31.12.04
Trading assets
Debt securities			215,400		176,493
Equity securities			137,423		99,388
Positive replacement values of derivative trading positions			56,096		52,447
Other			24,698		18,141
Total trading assets			433,617		346,469
Trading liabilities
Short positions			136,494		92,401
Negative replacement values of derivative trading positions			65,169		57,729
Total trading liabilities			201,663		150,130

Commissions and fees

The following table sets forth the details of commissions and fees:
									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Commissions from lending business			326		365		266		878		776
Investment and portfolio management fees			1,164		1,079		1,071		3,367		3,390
Commissions for other securities business			42		70		41		155		124
Commissions and fees from fiduciary activities			1,206		1,149		1,112		3,522		3,514
Underwriting fees			674		550		570		1,741		1,961
Brokerage fees			919		807		822		2,630		2,537
Commissions, brokerage securities underwriting and other securities activities			1,593		1,357		1,392		4,371		4,498
Fees for other customer services			672		612		537		1,748		1,500
Commissions and fees			3,797		3,483		3,307		10,519		10,288

Loans

The following table sets forth details of the domestic (Switzerland) and foreign loan portfolio:
in CHF m			30.09.05		31.12.04
Banks			1,752		1,558
Commercial			45,471		43,000
Consumer			80,400		76,010
Public authorities			3,463		3,894
Lease financings			2,989		2,696
Switzerland			134,075		127,158
Banks			7,819		7,233
Commercial			43,315		33,873
Consumer			18,618		18,248
Public authorities			485		679
Lease financings			108		130
Foreign			70,345		60,163
Loans, gross			204,420		187,321
Deferred expenses, net			97		116
Allowance for loan losses			(2,445)		(3,038)
Total loans, net			202,072		184,399

The following table sets forth the movements in the allowance for loan losses:
									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Balance beginning of period			2,733		2,851		3,790		3,038		4,646
New provisions			90		173		194		348		678
Releases of provisions			(150)		(198)		(154)		(473)		(466)
Net additions/(release) charged to income statement			(60)		(25)		40		(125)		212
Gross write-offs			(255)		(182)		(502)		(660)		(1,648)
Recoveries			10		17		16		50		47
Net write-offs			(245)		(165)		(486)		(610)		(1,601)
Provisions for interest			16		25		24		58		59
Foreign currency translation impact and other adjustments, net			1		47		(7)		84		45
Balance end of period			2,445		2,733		3,361		2,445		3,361
Provision for credit losses disclosed in the income statement also includes provisions for lending-related exposure.

The following table sets forth details of impaired loans, with or without a specific allowance. Loans are considered impaired when it is considered probable that the Group will not collect all amounts due under the loan terms.
in CHF m			30.09.05		31.12.04
With a specific allowance			2,994		3,910
Without a specific allowance			705		762
Total impaired loans, gross			3,699		4,672
Specific allowance for impaired loans 1)			2,106		2,659
1) Included in the allowances for loan losses.

Restructuring liabilities

The following table sets forth the movements of restructuring liabilities:
			2005						2004
in CHF m			Personnel		Other		Total		Personnel		Other		Total
Balance January 1			27		22		49		65		27		92
Net additions charged to income statement			0		1		1		65		12		77
Write-offs/recoveries, net 1)			(14)		(17)		(31)		(93)		(15)		(108)
Transfers, foreign exchange			(3)		4		1		(2)		0		(2)
Balance September 30			10		10		20		35		24		59
1) Includes cash paid or otherwise settled.

Accumulated other comprehensive income

The following table sets forth the movements of accumulated other comprehensive income, net of tax:
in CHF m			Gains/(losses) cash flow hedge		Cumulative translation adjustment		Unrealized gains/ (losses) on securities	1)	Minimum pension liability adjustment		Accumulated other com- prehensive income/(loss)
Balance January 1, 2004			3		(3,086)		1,141		(577)		(2,519)
Increase/(decrease)			24		190		(302)		(86)		(174)
Reclassification adjustments, included in net profit			6		0		(92)		0		(86)
Balance September 30, 2004			33		(2,896)		747		(663)		(2,779)
Balance January 1, 2005			27		(3,998)		1,068		(820)		(3,723)
Increase/(decrease)			24		1,310		485		0		1,819
Reclassification adjustments, included in net profit			22		(12)		(87)		0		(77)
Balance September 30, 2005			73		(2,700)		1,466		(820)		(1,981)
1) Presented net of shadow adjustments.

Earnings per share

The following table sets forth details of the calculation of earnings per share:
									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Income from continuing operations before cumulative effect of accounting changes			1,934		920		1,339		4,770		4,770
Income/(loss) from discontinued operations, net of tax			(16)		(1)		12		(37)		(95)
Cumulative effect of accounting changes, net of tax			0		0		0		14		(6)
Net income – as reported			1,918		919		1,351		4,747		4,669
Net income available for common shares for basic EPS 1)			1,850		919		1,304		4,670		4,528
Net income available for common shares for diluted EPS 2)			1,936		945		1,380		4,830		4,749
Weighted-average common shares outstanding for basic EPS (in m)			1,107.0		1,127.6		1,125.5		1,121.6		1,137.7
Effect of dilutive securities
	Convertible securities		40.4		40.4		40.4		40.4		40.4
	Share options and warrants		10.5		8.9		6.6		9.2		8.3
	Share awards		27.0		21.6		23.2		21.0		27.6
Adjusted weighted-average common shares for diluted EPS 3)			1,184.9		1,198.5		1,195.7		1,192.2		1,214.1
Basic earnings per share, in CHF
Income from continuing operations before cumulative effect of accounting changes			1.68		0.82		1.15		4.18		4.07
Income/(loss) from discontinued operations, net of tax			(0.01)		0.00		0.01		(0.03)		(0.08)
Cumulative effect of accounting changes, net of tax			0.00		0.00		0.00		0.01		(0.01)
Net income available for common shares			1.67		0.82		1.16		4.16		3.98
Diluted earnings per share, in CHF
Income from continuing operations before cumulative effect of accounting changes			1.64		0.79		1.14		4.07		3.99
Income/(loss) from discontinued operations, net of tax			(0.01)		0.00		0.01		(0.03)		(0.08)
Cumulative effect of accounting changes, net of tax			0.00		0.00		0.00		0.01		0.00
Net income available for common shares			1.63		0.79		1.15		4.05		3.91
1) In accordance with EITF 03-6, the basic earnings per share calculation considers the effect of participating securities. Specifically, the allocation of undistributed income related to the mandatory convertible securities is a reduction to the net income available to common shareholders for the purposes of the calculation. Undistributed earnings are not allocated to the mandatorily convertible security holders if the distributions made to shareholders during the period exceed the net income for the period.
2) Under the if-converted method for calculating diluted EPS, the interest on the mandatory convertible securities is included when the effect is dilutive.
3) Weighted-average potential common shares relating to instruments that were not dilutive for the respective periods (and therefore not included in the EPS-calculation above), but could potentially dilute earnings per share in the future were 61.4 million, 58.0 million, 40.6 million, 57.6 million and 39.6 million for 3Q2005, 2Q2005, 3Q2004, 9 months 2005 and 9 months 2004, respectively.

Pension

The following table sets forth details of the net periodic pension cost for the Swiss and international defined benefit pension and other post-retirement defined benefit plans:
									9 months
in CHF m			3Q2005		2Q2005		3Q2004		2005		2004
Service costs on benefit obligation			92		102		102		294		327
Interest costs on benefit obligation			189		186		180		559		541
Expected return on plan assets			(226)		(226)		(235)		(676)		(706)
Amortization of
	Unrecognized transition obligation/(asset)		(1)		(1)		(2)		(2)		(4)
	Prior service cost		10		9		10		29		28
	Unrecognized (gains)/losses		20		13		10		46		31
Net periodic pension costs			84		83		65		250		217
Settlement (gains)/losses			0		0		(2)		0		0
Curtailment (gains)/losses			0		0		0		(1)		6
Termination losses			0		3		5		9		12
Total pension costs			84		86		68		258		235

Credit Suisse Group previously disclosed in its financial statements for the year ended December 31, 2004, that it expected to contribute CHF 618 million to the pension plans in 2005. As of September 30, 2005, CHF 432 million of contributions have been made. Credit Suisse Group presently anticipates contributing an additional CHF 113 million to fund its pension plan in 2005 for a total of CHF 545 million. The calculation of the expected contributions for 2005 was subsequently revised to reflect the current funding status, resulting in a decrease in anticipated contributions. Guarantees and commitments Guarantees

The following tables set forth details of contingent liabilities associated with guarantees:
As of September 30, 2005, in CHF m			Total gross amount		Total net amount	1)	Carrying value		Collateral received
Credit guarantees and similar instruments			9,087		7,139		11		4,029
Performance guarantees and similar instruments			7,543		6,642		197		3,765
Securities lending indemnifications			35,863		35,863		0		35,863
Derivatives			424,716		424,716		3,789		1,103
Other guarantees 2)			3,329		3,329		25		1,612
Total guarantees			480,538		477,689		4,022		46,372

As of December 31, 2004, in CHF m			Total gross amount		Total net amount	1)	Carrying value		Collateral received
Credit guarantees and similar instruments			10,425		8,907		12		3,992
Performance guarantees and similar instruments			6,386		5,694		112		3,552
Securities lending indemnifications			24,808		24,808		0		24,808
Derivatives			247,454		247,454		2,482		186
Other guarantees 2)			3,112		3,112		25		1,348
Total guarantees			292,185		289,975		2,631		33,886
1) Total net amount relates to gross amount less any participations.
2) Contingent considerations in business combinations, residual value guarantees and other indemnifications.

Guarantees provided by the Group are broadly classified as follows: Credit guarantees and similar instruments, Performance guarantees and similar instruments, Securities lending indemnifications, Derivatives and Other guarantees. Readers are referred to note 37 “Guarantees and commitments” in the Credit Suisse Group Annual Report 2004 for a further description of Guarantees. In accordance with the terms of the Sale and Purchase Agreement (SPA) between XL Insurance (Bermuda) Limited (XL or the purchaser) and Winterthur Swiss Insurance (Winterthur) for Winterthur International, Winterthur is required to participate with the purchaser in a review for any adverse development of loss and unearned premium reserves during a three-year post-completion seasoning period, which expired on June 30, 2004. This seasoning process will result in a balancing payment being due to the purchaser. The provision recorded by Winterthur at September 30, 2005 for this sale-related contingency, net of pre-payments to and risks retained by XL amounted to CHF 709 million (USD 550 million). The provision, which reflects the adverse development of CHF 839 million (USD 651 million) included in Winterthur’s submitted Seasoned Net Reserves Amount (SNRA), is based on an extensive analysis of data provided by XL. Winterthur utilized leading third-party claims, actuarial and legal specialists to assist in estimating the reserves required for this liability. On the basis of facts known, Credit Suisse Group believes that the currently recorded provision is adequate to cover the contingencies related to this transaction. The amount payable to XL for the SNRA is ultimately subject to an assessment by the Independent Actuary designated in the SPA, who will determine which of the estimates submitted by the two parties is closest to the amount which the Independent Actuary believes to be the correct amount, and that estimate will be conclusively deemed to be the relevant SNRA. This process is ongoing and, consequently, the ultimate resolution of this matter could result in a further significant increase in the required provision for the Winterthur International sale-related contingencies. Winterthur and XL submitted in February 2005 their respective determinations of the SNRA to the Independent Actuary, who was officially engaged on April 13, 2005. The difference between the two positions under review by the Independent Actuary was reduced in the third quarter to CHF 1,133 million (USD 879 million) after XL adjusted its SNRA (with Winterthur’s consent) by USD 30m. In addition to the SPA, Winterthur has other agreements, including retrocession agreements with XL, which could result in payments to XL. Furthermore, XL submitted in the fourth quarter of 2004, and the second and third quarters of 2005, the details of its claims relating to alleged breach of warranties in connection with the 2001 sale. With the assistance of outside counsel, Winterthur continues to evaluate these claims and on the basis of facts known, believes that the currently recorded provisions are adequate to cover the contingencies related to this litigation and any other agreements with XL. The Group provides indemnifications to certain counterparties in connection with its normal operating activities. The Group has determined that it is not possible to estimate the maximum amount it could be obligated to pay. As a normal part of issuing its own securities, the Group typically agrees to reimburse holders for additional tax withholding charges or assessments resulting from changes in applicable tax laws or the interpretation of those laws. Securities that include these agreements to pay additional amounts generally also include a related redemption or call provision if the obligation to pay the additional amounts results from a change in law or its interpretation and the obligation cannot be avoided by the issuer taking reasonable steps to avoid the payment of additional amounts. Since such potential obligations are dependent on future changes in tax laws, the related liabilities the Group may incur as a result of such changes cannot be reasonably estimated. In light of the related call provisions typically included, the Group does not expect any potential liabilities in respect of tax gross-ups to be material. The Group is a member of numerous securities exchanges and clearing houses, and may, as a result of its membership arrangements, be required to perform if another member defaults. The Group has determined that it is not possible to estimate the maximum amount of these obligations and believes that any potential requirement to make payments under these arrangements is remote. Other commitments

The following table sets forth details of other commitments:
As of September 30, 2005, in CHF m			Total gross amount		Total net amount		Collateral received
Irrevocable commitments under documentary credits			5,089		4,762		2,313
Loan commitments			174,957		174,774		102,907
Forward reverse repurchase agreements			14,142		14,142		14,142
Other			4,099		4,099		560
Total other commitments			198,287		197,777		119,922

As of December 31, 2004, in CHF m			Total gross amount		Total net amount		Collateral received
Irrevocable commitments under documentary credits			4,390		4,076		1,577
Loan commitments			149,607		149,607		83,209
Forward reverse repurchase agreements			15,326		15,326		15,326
Other			2,625		2,625		567
Total other commitments			171,948		171,634		100,679

Other commitments of the Group are broadly classified as follows: Irrevocable commitments under documentary credits, Loan commitments, Forward reverse repurchase agreements and Other. Readers are referred to note 37 “Guarantees and commitments” of the Credit Suisse Group Annual Report 2004 for a further description of Other off-balance sheet commitments. Variable interest entities FIN 46R “Consolidation of Variable Interest Entities – An Interpretation of ARB No. 51”, requires the Group to consolidate all variable interest entities (VIEs) for which it is the primary beneficiary, defined as the entity that will absorb a majority of expected losses, receive a majority of the expected residual returns, or both. The Group consolidates all VIEs for which it is the primary beneficiary. As a normal part of its business, the Group engages in transactions with entities that are considered VIEs. These transactions include selling or purchasing assets, acting as a counterparty in derivatives transactions and providing liquidity, credit or other support. Transactions with VIEs are generally executed to facilitate securitization activities or to meet specific client needs, such as providing liquidity or investment opportunities, and as part of these activities, the Group may retain interests in VIEs. In general, investors in consolidated VIEs do not have recourse to the Group in the event of a default, except where a guarantee was provided to the investors or where the Group is the counterparty to a derivative transaction involving VIEs. The Group’s involvement with VIEs may be broadly grouped into three primary categories: Collateralized debt obligations (CDOs), Commercial paper conduits and Financial intermediation. Further details are available in notes 1, 2 and 39 of Credit Suisse Group’s Annual Report 2004 regarding Group’s policy on consolidation of VIEs and the nature of the Group’s involvement with these entities.

The following table summarizes the estimated total assets by category related to non-consolidated VIEs:
			Carrying value of VIEs' total assets
in CHF m			30.09.05		31.12.04
Collateralized debt obligations			18,870		57,517
Commercial paper conduits			6,023		4,456
Financial intermediation			64,476		67,326
Total			89,369		129,299

The following table summarizes the total assets, by category, related to VIEs consolidated as a result of the Group being the primary beneficiary:
			VIEs' total assets
in CHF m			30.09.05		31.12.04
Collateralized debt obligations			2,140		1,398
Commercial paper conduits			2		3
Financial intermediation			13,619		11,119
Total assets consolidated pursuant to FIN 46R			15,761		12,520

Collateralized debt obligations As part of its structured finance business, the Group purchases loans and other debt obligations from and on behalf of clients for the purpose of securitization. The Group has consolidated all CDO VIEs for which it is the primary beneficiary resulting in the inclusion by the Group of approximately CHF 2.1 billion of assets and liabilities of these VIEs. The beneficial interests issued by these VIEs are payable solely from the cash flows of the related collateral, and the creditors of these VIEs do not have recourse to the Group in the event of default. The Group also retains certain debt and equity interests in open CDO VIEs that are not consolidated because the Group is not the primary beneficiary. The Group’s exposure in these CDO transactions typically consists of the interests retained in connection with its underwriting or market-making activities. The Group’s maximum loss exposure is equal to the carrying value of these retained interests, which are reported as trading assets and carried at fair value and totaled CHF 0.9 billion as of September 30, 2005. Commercial paper conduits The Group continues to act as the administrator and provider of liquidity and credit enhancement facilities for several commercial paper conduit vehicles (CP conduits). The Group does not sell assets to the CP conduits and does not have any ownership interest in the CP conduits. The Group’s commitments to CP conduits consist of obligations under liquidity and credit enhancement agreements. As of September 30, 2005, the Group’s maximum loss exposure to non-consolidated CP conduits was CHF 11.4 billion, which consisted of CHF 6.0 billion of funded assets and the CP conduits’ commitments to purchase CHF 5.4 billion of additional assets. The Group believes that the likelihood of incurring a loss equal to this maximum exposure is remote because the assets held by the CP conduits, after giving effect to related asset-specific credit enhancements primarily provided by the clients, must be classified as investment grade when acquired by the CP conduits. Financial intermediation The Group has significant involvement with VIEs in its role as a financial intermediary on behalf of clients. The investors typically retain the risk of loss on such transactions but the Group may provide principal protection on the securities to limit the investors’ exposure to downside risk. As a financial intermediary, the Group may administer or sponsor the VIE, transfer assets to the VIE, provide collateralized financing, act as a derivatives counterparty, advise on the transaction, act as investment advisor or investment manager, act as underwriter or placement agent or provide credit enhancement, liquidity or other support to the VIE. The Group also owns securities issued by the VIEs structured to provide clients with investment opportunities, for market-making purposes and as investments. The Group’s maximum loss exposure to VIEs related to financial intermediation activities is estimated to be CHF 10.9 billion as of September 30, 2005, which represents the notional amount of any guarantees and the fair value of all other interests held. Further, the Group considers the likelihood of incurring a loss equal to the maximum exposure to be remote because of the Group’s risk mitigation efforts, including hedging strategies and the risk of loss that is retained by investors. Litigation In accordance with SFAS No. 5, “Accounting for Contingencies”, the Group recorded in the second quarter of 2005 a CHF 960 million (USD 750 million) charge before tax CHF 624 million after tax, in Institutional Securities, to increase the reserve for private litigation involving Enron, certain IPO allocation practices, research analyst independence and other related litigation. The charge was in addition to the reserve for these private litigation matters of CHF 702 million (USD 450 million) before tax originally established in 2002 and brings the total reserve for these private litigation matters to CHF 1.4 billion (USD 1.1 billion) after deductions for settlements that have since taken place. It is inherently difficult to predict the outcome of many of these matters. In presenting the condensed consolidated financial statements, management makes estimates regarding the outcome of these matters and records a reserve and takes a charge to income when losses with respect to such matters are probable and can be reasonably estimated. Estimates, by their nature, are based on judgment and currently available information and involve a variety of factors, including, but not limited to, the type and nature of the litigation, claim or proceeding, the progress of the matter, the advice of legal counsel, the Group’s defenses and its experience in similar cases or proceedings as well as its assessment of matters, including settlements, involving other defendants in similar or related cases or proceedings. Further charges or releases of litigation reserves may be necessary in the future as developments in such cases or proceedings warrant. The Group is involved in a number of other judicial, regulatory and arbitration proceedings concerning the matters arising in connection with the conduct of its businesses. These actions have been brought on behalf of various classes of claimants and, unless specified, seek damages of material and/or indeterminate amounts. The Group believes, based on currently available information and advice of counsel, that the results of such proceedings, in the aggregate, are not likely to have a material adverse effect on its financial condition but might be material to operating results for any particular period, depending, in part, upon the operating results for such period. Foreign currency translation rates

The following table shows principal Swiss franc foreign exchange rates:
			Average rate						Closing rate
in CHF			3Q2005		2Q2005		3Q2004		30.09.05		30.06.05		31.12.04
1 USD			1.28		1.23		1.27		1.2893		1.2803		1.1320
1 EUR			1.55		1.54		1.54		1.5544		1.5483		1.5439
1 GBP			2.28		2.28		2.29		2.2808		2.3148		2.1834
100 JPY			1.14		1.14		1.15		1.1375		1.1600		1.1023

Information for investors

Ticker symbols / Stock exchange listings
			Bloomberg		Reuters		Telekurs
SWX Swiss Exchange/virt-x			CSGN VX		CSGN.VX		CSGN,380
New York Stock Exchange (ADS) 1)			CSR US		CSR.N		CSR,065
			CSG share		ADS
Swiss security number			1213853		570660
ISIN number			CH0012138530		US2254011081
CUSIP number					225 401 108
1) 1 ADS represents 1 registered share.

Ratings
			Moody's		Standard & Poor's		Fitch Ratings
Credit Suisse Group
Short term			–		A-1		F1+
Long term			Aa3		A		AA-
Outlook			Stable		Stable		Stable
Credit Suisse 1)
Short term			P-1		A-1		F1+
Long term			Aa3		A+		AA-
Outlook			Stable		Stable		Stable
Winterthur
Insurer financial strength			A1		A-		A+
Outlook			Negative		Stable		Rating Watch Negative
1) The ratings refer to the merged bank.

Share data
			30.09.05		30.06.05		31.12.04
Shares issued			1,214,077,591		1,214,077,591		1,213,906,217
Treasury shares			(128,899,167)		(117,274,832)		(103,086,736)
Shares outstanding			1,085,178,424		1,096,802,759		1,110,819,481

Share price
									9 months
in CHF			3Q2005		2Q2005		3Q2004		2005		2004
High (closing price)			58.40		52.95		43.99		58.40		48.93
Low (closing price)			50.10		47.85		37.35		46.85		37.35

Financial calendar
Fourth quarter / full year results 2005			Wednesday, February 15, 2006
Annual General Meeting			Friday, April 28, 2006
First quarter results 2006			Wednesday, May 3, 2006

Enquiries Credit Suisse Group Investor Relations Ian Roundell, Tel. +41 44 333 1748 Marc Buchheister, Tel. +41 44 333 3169 Manuela Luzio, Tel. +41 44 332 6098 Fax +41 44 333 2587 Credit Suisse Group Media Relations Charles Naylor, Andrés Luther Tel. +41 44 333 8844 Fax +41 44 333 8877

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.

Credit Suisse Group Paradeplatz 8 P.O. Box 1 8070 Zurich Switzerland Tel. +41 44 212 16 16 Fax +41 44 333 25 87 www.credit-suisse.com

5520144 English

QUARTERLY RESULTS 2005   Q3

 

DISCLAIMER

Cautionary statement regarding forward-looking information

This presentation contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve inherent risks and uncertainties, and
we might not be able to achieve the predictions, forecasts, projections and
other outcomes we describe or imply in forward-looking statements.

A number of important factors could cause results to differ materially from
the plans, objectives, expectations, estimates and intentions we express in
these forward-looking statements, including those we identify in
"Risk Factors" in our Annual Report on Form 20-F for the fiscal year
ended December 31, 2004 filed with the US Securities and Exchange
Commission, and in other public filings and press releases.

We do not intend to update these forward-looking statements except as
may be required by applicable laws.

 

RESULTS OVERVIEW THIRD QUARTER 2005

in CHF m, except where indicated

3Q05

  vs
3Q04

  vs
2Q05

  vs 2Q05
adjusted¹⁾

1) Excluding a litigation charge of CHF 960 m before tax and CHF 624 m after tax

Net revenues

15,510

10%

10%

30%

Total operating expenses

6,996

(3%)

13%

18%

Net income

1,918

109%

24%

42%

Return on equity

20.1%

Basic EPS (in CHF)

1.67

104%

22%

44%

 

Net income in CHF m

PRIVATE BANKING
STRONG RESULT DRIVEN BY ASSET-BASED
AND TRANSACTION-BASED REVENUES

511

616

685

25%

4Q04

3Q04

1Q05

2Q05

3Q05

42%

581

728

 

Total operating expenses in CHF m

Revenues in CHF m

PRIVATE BANKING
HIGH REVENUES BENEFITING FROM
IMPROVED COMMISSIONS AND FEES

4Q04

3Q04

1Q05

2Q05

3Q05

994

993

1,060

4Q04

3Q04

1Q05

2Q05

3Q05

1,644

1,717

1,912

Cost/income ratio in %

55.4

60.5

57.8

491

547

460

503

446

600

Other expenses ¹⁾

Compensation and benefits

1,810

59.9

1,084

504

580

Commissions and fees

All other revenues

1,113

1,149

1,209

1,180

531

568

703

630

1) Including restructuring charges of CHF (1) m and CHF 1 m in 3Q04 and 4Q04, respectively

2,021

1,306

715

55.7

1,125

524

601

23%

13%

 

Assets under management in CHF bn

Net new assets in CHF bn

7.0

564

3.8

3.9

539

544

4Q04

3Q04

1Q05

2Q05

3Q05

4Q04

3Q04

1Q05

2Q05

3Q05

6%

12.8

602

Annualized
growth rate:

2004:  5.2%

9M05: 8.4%

14.3

637

PRIVATE BANKING
STRONG ASSET INFLOWS SUPPORTED BY
GROWTH IN ASIAN AND EUROPEAN MARKETS

18%

34.1

 

Net margin in bp

Gross margin in bp

PRIVATE BANKING
GROSS MARGIN BENEFITED FROM
HIGH LEVEL OF NET REVENUES

122

81

37

4

128

84

5

39

4Q04

3Q04

1Q05

2Q05

3Q05

138

83

6

49

126

79

3

44

9M05: 131

FY2004: 134

131

79

4

48

38

46

4Q04

3Q04

1Q05

2Q05

3Q05

50

41

9M05: 46

FY2004: 47

48

Asset-driven

Transaction-driven

Other

 

Net income in CHF m

CORPORATE & RETAIL BANKING
GOOD RESULT MAINTAINED DUE TO STRONG NET
REVENUES AND FAVORABLE CREDIT ENVIRONMENT

199

257

274

(5%)

33%

4Q04

3Q04

1Q05

2Q05

3Q05

277

264

 

Total operating expenses in CHF m

Revenues in CHF m

CORPORATE & RETAIL BANKING
CONTINUED STRONG REVENUE CONTRIBUTION
AND TIGHTLY MANAGED COSTS

4Q04

3Q04

1Q05

2Q05

3Q05

527

477

529

4Q04

3Q04

1Q05

2Q05

3Q05

808

803

860

Cost/income ratio in %

61.5

65.2

59.4

2%

9%

266

206

308

261

271

221

Other expenses

Compensation and benefits

858

548

63.9

291

257

879

62.7

551

295

256

5%

 

Net income in CHF m

INSTITUTIONAL SECURITIES
IMPROVED RESULT DUE TO FOCUS ON HIGH-
MARGIN PRODUCTS AND ACTIVE MARKETS

4Q04

3Q04

1Q05

2Q05

3Q05

292 ¹⁾

269

540

(408)

216 ²⁾

1) Including the release of tax contingency accruals of CHF 126 m

2) Excluding the litigation charge of CHF 624 m after tax

612

 

Investment banking revenues in CHF m

868

718

627

4Q04

3Q04

1Q05

2Q05

3Q05

Equity
underwriting

Advisory and

other fees

Debt
underwriting

4%

42%

25%

8%

131%

30%

  vs
3Q04

Total

948

185

465

298

138

306

183

199

303

216

114

448

306

28%

1,126

263

482

381

19%

INSTITUTIONAL SECURITIES
SIGNIFICANT PROGRESS IN INVESTMENT BANKING

 

Fixed income trading revenues in CHF m

1,348

1,278

1,926

4Q04

3Q04

1Q05

2Q05

3Q05

INSTITUTIONAL SECURITIES
TRADING RESULT BENEFITED FROM
PRODUCT FOCUS AND FAVORABLE MARKETS

Equity trading revenues in CHF m

696

828

926

4Q04

3Q04

1Q05

2Q05

3Q05

31%

48%

49%

78%

1,194

834

1,770

1,239

 

Pre-tax margin ²⁾ in %

Total operating expenses in CHF bn

INSTITUTIONAL SECURITIES
FURTHER PROGRESS IN
IMPROVING THE PRE-TAX MARGIN

4Q04

3Q04

1Q05

2Q05

3Q05

1)   Including a litigation charge of CHF 960 m before tax

2) Excluding minority interest results primarily relating to the FIN 46R consolidation

3) Excluding the litigation charge of CHF 960 m before tax

2.6

7.7

4Q04

3Q04

1Q05

2Q05

3Q05

13.7

Compensation and benefits

Other expenses

2.8

3.0

19.9

0%

37%

3.9 ¹⁾

3.4

(20.0)

20.4

9.7 ³⁾

 

Net income in CHF m

WEALTH & ASSET MANAGEMENT
GOOD RESULT COMPARED TO 3Q04
BUT LOWER THAN STRONG 2Q05

30

63

135

4Q04

3Q04

1Q05

2Q05

3Q05

(59%)

237%

245

101

 

Net revenues by division ¹⁾ in CHF m

635

772

772

WEALTH & ASSET MANAGEMENT
KEY BUSINESS AREAS CONTRIBUTED
TO REVENUE PERFORMANCE

4Q04

3Q04

1Q05

2Q05

3Q05

Credit Suisse
Asset Management

Alternative Capital

(8%)

3%

1)   Excluding minority interest revenues primarily relating to the FIN 46R consolidation

Private Client Services

Total ¹⁾

403

473

471

113

213

132

57

66

64

15%

62

20

105

Investment-related
gains & Other

23%

7%

20%

124%

  vs
3Q04

945

470

132

61

282

(51%)

812

482

121

70

139

 

Net new assets ¹⁾ in CHF bn

4Q04

3Q04

1Q05

2Q05

3Q05

4Q04

3Q04

1Q05

2Q05

3Q05

Private Client
Services

Credit Suisse
Asset Management

Alternative Capital

5.4

502

482

488

(0.5)

(0.2)

1)   Includes assets managed on behalf of other entities within Credit Suisse Group

Assets under management ¹⁾ in CHF bn

2.8

529

WEALTH & ASSET MANAGEMENT
HIGHER ASSET INFLOWS IN PRIVATE
CLIENT SERVICES AND CSAM

4.1

553

 

Net income in CHF m

LIFE & PENSIONS
RESULT IMPACTED BY TAX EFFECTS AND CHANGE IN
ACTUARIAL ASSUMPTIONS AND MODELS

164

3Q04

3Q05

9M04

9M05

338

96

Comments

Adverse net impact of CHF 61 m in
3Q05 in respect of changes in actuarial
assumptions and models

Increase in valuation of deferred tax assets
of CHF 31 m and CHF 72 m in 3Q05 and
3Q04, respectively

9M05 pre-tax income remains unchanged at
CHF 481 m despite a charge for actuarial adjustments

Increase in valuation of deferred tax assets
reflects improved expected future taxable
earnings

370

(41%)

(9%)

 

Total business volume in CHF m
for the quarter

LIFE & PENSIONS
POLICYHOLDER DEPOSITS DRIVE
BUSINESS VOLUME INCREASE

3,292

3,728

3Q04

3Q05

Policyholder
deposits

Gross
premiums
written

16%

10%

13%

12,819

13,706

9M04

9M05

Policyholder
deposits

Gross
premiums
written

13%

4%

7%

Total business volume in CHF m
year-to-date

 

Net income in CHF m

198

3Q04

3Q05

9M04

9M05

452

190

Comments

Negative impact of CHF 72 m after tax and net of
reinsurance in 3Q05 due to Swiss floods

No significant impact from hurricanes in the US,
following decision to exit certain risk exposures

Increase in valuation of deferred tax assets of
CHF 132 m and CHF 59 m in 3Q05 and 3Q04,
respectively

Increase in valuation of deferred tax assets
reflects improved expected future taxable
earnings

NON-LIFE
RESULT IMPACTED BY POSITIVE TAX EFFECTS AND
CHF 72 MILLION FOR FLOODS IN SWITZERLAND

383

(4%)

18%

 

NON-LIFE
PREMIUM GROWTH THROUGH TARIFF INCREASES
DESPITE COMPETITIVE MARKET ENVIRONMENT

Net premiums earned in CHF m

for the quarter

2,530

2,683

3Q04

3Q05

6%

Net premiums earned in CHF m

year-to-date

7,978

8,029

9M04

9M05

1%

 

NON-LIFE
YTD COMBINED RATIO LOWER THAN LAST YEAR
DESPITE FLOODS IN SWITZERLAND

Combined ratio in %

for the quarter

101.8

3Q04

3Q05

101.3

0.5ppts

26.3

26.7

75.5

74.6

Combined ratio in %

year-to-date

98.8

9M04

9M05

99.8

-1ppt

25.0

25.5

73.8

74.3

Expense
ratio

Claims
ratio

Expense
ratio

Claims
ratio

 

Credit Suisse Group

CAPITAL POSITION STRENGTHENED

4Q04

3Q04

1Q05

2Q05

3Q05

204

199

215

Comments

Winterthur shareholders’ equity of
CHF 9.7 bn as of September 30,
2005; improvement of CHF 0.3 bn
compared to June 30, 2005

11.8

12.3

12.1

BIS tier 1 ratio in %

Risk-weighted assets in CHF bn

10.9

238

Repurchased 26 million shares
worth CHF 1.4 bn¹⁾ since the
initiation of the program

Risk-weighted assets were held at
CHF 240 bn during the quarter

Tier 1 capital improved as net income
was only partially offset by share
repurchases of CHF 0.7 bn in 3Q05

11.1

240

1)   As at end of October 2005

 

PERFORMANCE GOALS OVERVIEW

Medium-term
goals

9M05

all goals on full-year basis

1) Excl. minority interest results primarily relating to the FIN 46R consolidation                                3) Excluding the litigation charge of CHF 624 m after tax in 2Q 05

2) Excluding the litigation charge of CHF 960 m before tax in 2Q 05                                                 4) For Moody’s, Standard & Poor’s and FitchRatings

Credit Suisse
First Boston

Credit Suisse

Winterthur

Credit Suisse
Group

Consolidated

Return on equity

16.9 % / 19.0 %³⁾

15 % to 20 %

Tier 1 target

11.1 %

> 10 %

Private Banking

Gross margin

131 bp

130 bp

Cost/income ratio

56.9 %

< 55 %

Net new asset growth (annualized)

8.4 %

> 5 %

Corporate &

Revenue growth (annualized)

3.4 %

> 5 %

Retail Banking

Cost/income ratio

62.7 %

< 60 %

Return on allocated capital

21.2 %

> 15 %

Division

Pre-tax margin ¹⁾

11.6 % / 18.6 %²⁾

> 20 %

Return on allocated capital

12.2 % / 18.3 %³⁾

> 20 %

Division

IFS rating

A1 / A- / A+⁴⁾

Single A

Return on equity

11.7 %

> 12 %

Non-Life

Combined ratio

98.8 %

< 98 %

Life & Pensions

Expense ratio

10.0 %

< 8 %

 

OUTLOOK

Higher interest rates and increased market volatility expected

Oil and other commodities to continue their correction within a
longer-term upward trend

Global economy assumed to remain robust as growth in Asia
and Europe helps offset the pressure from higher energy costs and
interest rates facing US consumers

 

Investor Relations contacts

Ian Roundell

+41 44 333 1748

ian.roundell@credit-suisse.com

Marc Buchheister

+41 44 333 3169

marc.buchheister@credit-suisse.com

Manuela Luzio

+41 44 332 6098

manuela.luzio@credit-suisse.com

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CREDIT SUISSE GROUP (Registrant)
Date November 2, 2005	By:	/s/ Urs Rohner
		General Counsel
*Print the name and title under the signature of the signing officer.
		/s/ Charles Naylor
		Head of Group Communications

 

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