UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT
TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the
month of November, 2005
Commission File Number 001-15244
CREDIT
SUISSE GROUP
(Translation of registrant's
name into English)
Paradeplatz
8, P.O. Box 1, CH-8070 Zurich, Switzerland
(Address of principal
executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
Media Relations CREDIT SUISSE GROUP P.O. Box 1 CH-8070 Zurich www.credit-suisse.com Telephone +41 844 33 88 44 Telefax +41 44 333 88 77 media.relations@credit-suisse.com |
||
Credit Suisse
Group reports a 42% increase in third-quarter 2005 net income to CHF
1.9 billion Zurich, November 2, 2005 Credit Suisse Group today reported net income of CHF 1,918 million for the third quarter of 2005, compared to CHF 1,351 million in the third quarter of 2004 and CHF 919 million in the second quarter of 2005. 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. Net new assets for the Group amounted to CHF 19.0 billion. |
Financial Highlights | ||||||||||
in CHF million | 3Q2005 | 2Q2005 | 3Q2004 | Change in % | Change in % | |||||
vs 2Q2005 | vs 3Q2004 | |||||||||
Net revenues | 15,510 | 14,101 | 11,935 | 10 | 30 | |||||
Total operating expenses | 6,996 | 7,178 | 5,933 | (3 | ) | 18 | ||||
Net income | 1,918 | 919 | 1,351 | 109 | 42 | |||||
Group return on equity | 20.1 | % | 9.8 | % | 15.3 | % | - | - | ||
Basic earnings per share (in CHF) | 1.67 | 0.82 | 1.16 | - | - | |||||
BIS tier 1 ratio | 11.1 | % | 10.9 | % | - | - | - | |||
Oswald J. Gruebel, CEO of Credit Suisse Group, said, "The third-quarter result was satisfactory, as our Group benefited from increased levels of client activity and the active market environment. This was demonstrated by the substantial increase in our net income versus the third quarter of last year."
He added, "By building a global integrated bank that capitalizes on our strengths and expertise in investment banking, private banking and asset management, I am convinced that we will realize our ambition to achieve sustainable growth."
Page 1 of 7
Banking Segments | |||||||||||
Credit Suisse Group Banking Segment Results | |||||||||||
in CHF million | 3Q2005 | 2Q2005 | 3Q2004 | Change in % | Change in % | ||||||
vs 2Q2005 | vs 3Q2004 | ||||||||||
Private Banking | Net revenues | 2,021 | 1,810 | 1,644 | 12 | 23 | |||||
Total op. expenses | 1,125 | 1,084 | 994 | 4 | 13 | ||||||
Net income | 728 | 581 | 511 | 25 | 42 | ||||||
Corporate & | Net revenues | 879 | 858 | 808 | 2 | 9 | |||||
Retail Banking | Total op. expenses | 551 | 548 | 527 | 1 | 5 | |||||
Net income | 264 | 277 | 199 | (5 | ) | 33 | |||||
Institutional | Net revenues | 4,303 | 3,335 | 3,083 | 29 | 40 | |||||
Securities | Total op. expenses | 3,399 | 3,891 | 2,780 | (13 | ) | 22 | ||||
Net income | 612 | (408 | ) | 292 | - | 110 | |||||
Wealth & Asset | Net revenues | 1,250 | 1,570 | 809 | (20 | ) | 55 | ||||
Management | Total op. expenses | 686 | 623 | 604 | 10 | 14 | |||||
Net income | 101 | 245 | 30 | (59 | ) | 237 | |||||
Private Banking reported net income of CHF 728 million in the third quarter of 2005, an increase of 42% over the same period of 2004 and of 25% versus the second quarter of 2005. This result was driven primarily by strong asset-based and transaction-based revenues, which more than offset an increase in total operating expenses due to increased compensation and benefits - resulting mainly from higher performance-related compensation accruals - as well as strategic investments in international growth markets. The cost/income ratio improved to 55.7% in the third quarter of 2005 and the gross margin was 130.9 basis points, up 9.2 basis points from the third quarter of 2004 and up 5.3 basis points from the prior quarter.
Corporate & Retail Banking generated net income of CHF 264 million in the third quarter of 2005. 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. This corresponds to a 33% increase over the third quarter of 2004 and a decline of 5% versus the record result in the second quarter of 2005. The segment's return on average allocated capital was 19.8% for the third quarter of 2005 and the cost/income ratio was 62.7%, an improvement of 2.5 percentage points versus the same period of 2004 and of 1.2 percentage points versus the prior quarter.
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. This result compares to a net loss of CHF 408 million in the second quarter of 2005, which included a CHF 624 million after-tax charge to increase the reserve for certain private litigation matters.
Page 2 of 7
Excluding this litigation charge, net income would have risen by 183% quarter-on-quarter. The segments pre-tax margin (excluding minority interests) improved to 20.4% in the third quarter of 2005 from 7.7% in the same period of last year and the return on average allocated capital was 18.0%.
Wealth & Asset Management generated net income of CHF 101 million in the third quarter of 2005, an increase of 237% versus the third quarter of 2004 due primarily to higher revenues in key areas. The segment reported an increase in total operating expenses versus the same period of 2004, reflecting higher compensation and benefits expenses and higher other expenses. Compared to the second quarter of 2005, which included a particularly high level of private equity gains in Alternative Capital, net income declined by 59%. For the first nine months of 2005, net income increased 3% to CHF 481 million compared to the same period of 2004, despite somewhat lower year-to-date private equity gains which have varied from quarter to quarter.
Insurance Segments | |||||||||||
Credit Suisse Group Insurance Segment Results | |||||||||||
in CHF million | 3Q2005 | 2Q2005 | 3Q2004 | Change in % | Change in % | ||||||
vs 2Q2005 | vs 3Q2004 | ||||||||||
Life & Pensions | Net revenues | 4,246 | 3,714 | 2,915 | 14 | 46 | |||||
Total op. expenses | 616 | 428 | 433 | 44 | 42 | ||||||
Net income | 96 | 116 | 164 | (17 | ) | (41 | ) | ||||
Non-Life | Net revenues | 3,029 | 2,979 | 2,853 | 2 | 6 | |||||
Total op. expenses | 754 | 713 | 706 | 6 | 7 | ||||||
Net income | 190 | 137 | 198 | 39 | (4 | ) | |||||
Life & Pensions reported net income of CHF 96 million in the third quarter of 2005, reflecting solid technical results and business volumes. This result includes an adverse net impact after tax and policyholder participations of CHF 61 million related to the changes in actuarial assumptions and models. This was partly 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 third-quarter 2005 net income declined by CHF 68 million from CHF 164 million in the third quarter of 2004. This decline was also attributable to a 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 to CHF 338 million was attributable to these factors. In the third quarter of 2005, total business volume grew by 13% versus the same period of 2004 and gross premiums written increased by 10%. Insurance underwriting and acquisition expenses rose by 164%, driven by the above-mentioned changes in actuarial assumptions and models, and administration expenses were up by 4%. The net investment return backing traditional life policies totaled 4.9% in the third quarter of 2005 and the net current investment return was 3.6%.
Page 3 of 7
Non-Life reported net income of CHF 190 million in the third quarter of 2005, down 4% versus the third quarter of 2004. This result was negatively affected by losses relating to unusually heavy rainfall and flooding in Switzerland, which had a negative impact of CHF 72 million after 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. Year-to-date, net income totaled CHF 452 million, an increase of 18% versus the same period of 2004, reflecting the ongoing focus on selective and controlled underwriting. In the third quarter of 2005, net premiums earned rose 6% versus the third quarter of 2004 and the combined ratio increased by 0.5 percentage points to 101.8%. Administration expenses fell by 1% compared to the third quarter of 2004, while insurance underwriting and acquisition expenses rose 9%. The expense ratio decreased by 0.4 percentage points versus the third quarter of 2004. Non-Lifes net investment return improved to 4.4% in the third quarter of 2005 and the net current investment return decreased slightly to 3.4%.
Net New Assets | ||||||
Net New Assets and Assets under Management (AuM) | ||||||
in CHF billion | Net New Assets | Total AuM | Change in AuM | |||
3Q2005 | 30.09.05 | % vs 30.06.05 | ||||
Private Banking | 14.3 | 637.2 | 5.8 | |||
Corporate & Retail Banking | 0.4 | 56.3 | 2.6 | |||
Institutional Securities | 0.0 | 14.4 | 1.4 | |||
Wealth & Asset Management 1) | 4.0 | 543.8 | 4.6 | |||
Life & Pensions | 0.3 | 125.1 | 2.1 | |||
Non-Life | n/a | 27.8 | 1.5 | |||
Credit Suisse Group | 19.0 | 1,404.6 | 4.7 | |||
1) Excluding assets managed on behalf of other entities within Credit Suisse Group | ||||||
n/a: not applicable |
Private Banking reported net new assets of CHF 14.3 billion in the third quarter of 2005, with healthy inflows from strategic key markets in Asia and the European onshore business. With an annualized year-to-date growth rate of 8.4%, Private Banking exceeded its mid-term target of 5%. Wealth & Asset Management reported 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. Overall, Credit Suisse Group reported CHF 19.0 billion of net new assets in the third quarter. The Groups total assets under management stood at CHF 1,404.6 billion as of September 30, 2005, up by 4.7% from June 30, 2005.
Page 4 of 7
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.
Enquiries | ||
Credit Suisse Group, Media Relations | Telephone | +41 844 33 88 44 |
Credit Suisse Group, Investor Relations | Telephone | +41 44 333 31 69 |
For additional information on Credit Suisse Groups results for the third quarter of 2005, please refer to the Groups Quarterly Report Q3 2005, as well as the Groups 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 Groups 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
Letter to Shareholders 2005 Q3 |
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 | |||||||
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.
|
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 |
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. |
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. |
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 | |||||||
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 | |||||||
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 | |||||||
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 |