FORM 6-K
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report
of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of May 4, 2006
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 office)
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-
 |
CREDIT SUISSE GROUP | |
| Paradeplatz 8 P.O. Box CH-8070 Zurich Switzerland |
Telephone +41 844 33 88
44 Fax +41 44 333 88 77 media.relations@credit-suisse.com |
| Media Release |
| Credit Suisse Group reports net income of CHF 2.6 billion for the first quarter of 2006 |
| Zurich, May 2, 2006 Credit Suisse Group today reported net income of CHF 2,604 million for the first quarter of 2006, an increase of 36% compared to net income of CHF 1,910 million in the first quarter of 2005. Net new assets totaled CHF 31.1 billion in the first quarter of 2006. The Group recorded a return on equity of 24.4%, with a return on equity of 27.4% in the banking business and 15.0% in the insurance business. |
Oswald J. Grübel, CEO of Credit Suisse Group, stated, "The first quarter of 2006 provided an excellent environment in which to start operating as an integrated global bank. Positive market sentiment translated into strong client activity across our Investment Banking, Private Banking and Asset Management divisions and we were well positioned to benefit from favorable trading conditions. I am very pleased with our performance in our first three months as an integrated bank."
| Financial highlights | |||||||||
| in CHF million | 1Q2006 | 4Q2005 | 1Q2005 | Change in % | Change in % | ||||
| vs 4Q2005 | vs 1Q2005 | ||||||||
| Net revenues | 21,779 | 14,138 | 16,897 | 54 | 29 | ||||
| Total operating | 7,686 | 7,693 | 6,116 | 0 | 26 | ||||
| Net income | 2,604 | 1,103 | 1,910 | 136 | 36 | ||||
| Return on equity - Group | 24.4% | 11.2% | 20.6% | - | - | ||||
| Return on equity - Banking | 27.4% | 10.8% | 22.9% | - | - | ||||
| Return on equity - Insurance | 15.0% | 11.4% | 12.0% | - | - | ||||
| Basic earnings per share (CHF) | 2.31 | 0.98 | 1.64 | - | - | ||||
| BIS tier 1 ratio (at quarter-end) | 10.8% | 11.3% | 12.1% | - | - | ||||
New reporting structure
Credit
Suisse Group realigned its reporting structure to reflect the launch of the
new integrated global
bank, effective January 1, 2006. Under the new structure, the Group has a
separate reporting segment for each of its three banking divisions − Investment Banking, Private Banking and Asset Management − and
a single reporting segment for the insurance business, Winterthur. The new
reporting structure applies with effect from the first quarter of 2006.
|
Media Release |
| May 2, 2006 Page 2/6 |
| Credit Suisse Group banking segment | ||||||||||
| in CHF million | 1Q2006 | 4Q2005 | 1Q2005 | Change in % | Change in % | |||||
| vs 4Q2005 | vs 1Q2005 | |||||||||
| Investment | Net revenues | 5,757 | 3,735 | 3,994 | 54 | 44 | ||||
| Banking | Total operating expenses | 4,248 | 3,462 | 3,081 | 23 | 38 | ||||
| Income from | ||||||||||
| operations before taxes | 1,564 | 286 | 932 | 447 | 68 | |||||
| Private | Net revenues | 3,110 | 2,716 | 2,539 | 15 | 22 | ||||
| Banking | Total operating expenses | 1,810 | 1,711 | 1,581 | 6 | 14 | ||||
| Income from | ||||||||||
| operations before taxes | 1,308 | 1,026 | 974 | 27 | 34 | |||||
| Asset | Net revenues | 756 | 757 | 614 | 0 | 23 | ||||
| Management | Total operating expenses | 520 | 516 | 406 | 1 | 28 | ||||
| Income from | ||||||||||
| operations before taxes | 234 | 241 | 208 | (3) | 13 | |||||
Investment Banking segment
The
Investment Banking segment reported record income from continuing operations
before taxes of CHF 1,564 million in the first quarter of 2006, an increase of 68% compared to the first quarter of 2005. Net revenues were also at a record level, growing 44% compared to the same period of 2005 due to substantially higher investment banking revenues and trading revenues, driven by increased client activity. The segment's total operating expenses rose 38% compared to the first quarter of 2005, primarily reflecting higher compensation accruals in line with improved results. The compensation/revenue ratio improved by 2.0 percentage points to 53.5% in the first quarter of 2006 from 55.5% for the full-year 2005. Compared to the fourth quarter
of 2005, income from continuing operations before taxes grew by CHF 1,278 million. This significant improvement was driven mainly by 54% growth in net revenues. Total operating expenses rose 23% from the previous quarter due primarily to higher compensation accruals in line with improved results, partly offset by lower other expenses. Investment Banking's pre-tax income margin was 27.2% for the first quarter of 2006, up 3.9 percentage points from the first quarter of 2005 and up 19.5 percentage points from the previous quarter. The pre-tax return on average economic risk capital was 42.0% in the first quarter of 2006, compared to 35.8% in the first quarter of 2005 and 10.3% in the previous quarter. Investment Banking recorded net releases of provisions for credit losses of CHF 55
million in the first quarter of 2006, reflecting the continued favorable credit environment for lenders. This compares to net releases of CHF 19
million in the first quarter of 2005 and of CHF 13 million in the previous quarter.
Private Banking segment
The
Private Banking segment recorded excellent income from continuing operations
before taxes of CHF 1,308
million in the first quarter of 2006, up 34% from the first quarter of 2005.
Net revenues grew 22% compared to the first quarter of 2005, primarily reflecting
a significant increase in commissions and fees as the segment proved its
ability to capitalize on the very strong client activity and market momentum.
Total operating expenses rose 14% from the first quarter of 2005, mainly
reflecting higher performance-related compensation accruals as well as personnel
expenses relating to strategic growth initiatives. Compared to the fourth
quarter of 2005, income from continuing operations before taxes rose 27%,
reflecting a 15% improvement in net revenues and a 6% rise in total operating
expenses. Private Banking recorded net releases of provisions
for credit losses of CHF 8 million in the first quarter of 2006. This compares
to net releases of CHF 16 million in the first quarter of 2005 and of
CHF 21 million in the previous quarter.
|
Media Release |
| May 2, 2006 Page 3/6 |
The Wealth Management business, which is part of Private Banking, reported income from continuing operations before taxes of CHF 963 million in the first quarter of 2006, up 50% from the first quarter of 2005 and up 37% from the previous quarter. The pre-tax income margin was 43.2% for the first quarter of 2006, corresponding to an increase of 5.5 percentage points versus the first quarter of 2005 and of 5.6 percentage points versus the previous quarter.
The Corporate & Retail Banking business, which is part of Private Banking, posted income from continuing operations before taxes of CHF 345 million in the first quarter of 2006, an increase of 4% from the first quarter of 2005 and of 7% from the previous quarter. The pre-tax income margin was 39.1%, down 0.5 percentage points from the first quarter of 2005 and up 1.1 percentage points from the previous quarter. Corporate & Retail Banking reported a pre-tax return on average economic risk capital of 48.4% in the first quarter of 2006. This represents an increase of 6.6 percentage points versus the first quarter of 2005 and an increase of 6.0 percentage points versus the previous quarter.
Asset Management segment
The
Asset Management segment posted income from continuing operations before
taxes of CHF 234 million in the firstquarter of 2006, an improvement of 13%
versus the first quarter of 2005. Net revenues
grew 23% compared to the corresponding period of 2005, primarily reflecting
stronger asset management revenues and higher private equity gains. Total
operating expenses rose 28% versus the first quarter of 2005 due to higher
performance-related compensation, higher commission expenses, costs associated
with the realignment of the Asset Management business and costs associated
with the branding implementation and related advertising costs. Compared
to the fourth quarter of 2005, income from continuing operations before taxes
declined 3%, reflecting stable net revenues and a marginal increase in total
operating expenses. Asset Management's pre-tax income margin was 31.0% for
the first quarter of 2006, down 2.9 percentage points from the first quarter
of 2005 and down 0.8 percentage points from the previous quarter. The
segment's cost/income ratio was up 2.7 percentage points versus the first
quarter of 2005 to 68.8% and up 0.6 percentage points from the previous quarter.
Net new assets
Wealth
Management business recorded CHF 14.5 billion of net new assets in the first
quarter of 2006, representing
an annualized growth rate of 8.4%. This strong asset generation was driven
by inflows from Switzerland, Europe and the Americas. Asset Management reported
CHF 17.0 billion of net new assets, driven mainly by money market products, fixed income, multi-asset class solution products and alternative investments which originated primarily from the US and Europe. Overall, Credit Suisse Group recorded CHF 31.1 billion of net new asset inflows in the first quarter of 2006. The Group’s total assets under management stood at CHF 1,553.6
billion as of March 31, 2006, an increase of 4.7% from December 31, 2005.
|
Media Release |
| May 2, 2006 Page 4/6 |
Winterthur
Commenting
on the insurance business, Oswald J. Grübel stated, "Winterthur
confirmed the strength of its business in the first quarter of 2006, further
improving its operating
performance and recording significant growth in total business volume, while
reducing its total operating expenses. Going forward, we remain committed
to enhancing efficiency and productivity in order to capture the full value
of this business."
| Winterthur segment results | ||||||||||
| in CHF million | 1Q2006 | 4Q2005 | 1Q2005 | Change in % | Change in % | |||||
| vs 4Q2005 | vs 1Q2005 | |||||||||
| Net revenues | 10,915 | 6,381 | 9,485 | 71 | 15 | |||||
| Total operating expenses | 1,051 | 1,099 | 1,085 | (4) | (3) | |||||
| Income from continuing operations | ||||||||||
| before taxes | 505 | 482 | 418 | 5 | 21 | |||||
Winterthur recorded income from continuing operations before taxes of CHF 505 million in the first quarter of 2006, an increase of 21% versus the first quarter of 2005, reflecting continued operational improvements. Gross premiums written totaled CHF 10,657 million in the first quarter of 2006, representing growth of 7% compared to the first quarter of 2005. Total business volume was CHF 12,737 million, an increase of 11%. This growth was driven by the Life & Pensions business, where total business volume rose 18% as a result of a 13% increase in traditional business, primarily in Switzerland, and 39% growth in investment-type products, primarily in the UK. Net investment return backing traditional life policies and non-life policies decreased 0.5 percentage points to 4.8% in the first quarter of 2006 compared to the first quarter of 2005, reflecting a lower level of realized gains. Winterthur's total operating expenses decreased 3% in the first quarter of 2006 compared to the same period of 2005, primarily reflecting a decline in insurance underwriting and acquisition expenses. The Life & Pensions business reported an expense ratio of 4.2%, an improvement of 1.6 percentage points compared to the first quarter of 2005, as the total business volume grew strongly and expenses decreased. The Non-Life business recorded a combined ratio of 93.5%, an improvement of 3.2 percentage points versus the same period of 2005, due to generally favorable claims development. Winterthur's income from discontinued operations, net of tax, was CHF 23 million, driven mainly by the gain on the sale of the Canadian subsidiary, Citadel General Assurance Company, in the first quarter of 2006. Net income for the first quarter of 2006 was CHF 357 million, an increase of 42% compared to the first quarter of 2005, representing a return on equity of 15.0%, up 3.0 percentage points.
Outlook
Global growth looks set to continue through 2007. Credit Suisse Group does not expect interest rates to increase substantially before the end of the year. It expects a stable US dollar against major currencies.
Information
Media Relations Credit Suisse, telephone
+41 844 33 88 44, media.relations@credit-suisse.com
Investor Relations Credit Suisse, telephone
+41 44 333 71 49, investor.relations@credit-suisse.com
For additional information on Credit Suisse Group’s first-quarter 2006 results, please refer to the Group’s Quarterly Report Q1 2006, 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
|
Media Release |
| May 2, 2006 Page 5/6 |
Credit Suisse Group
Credit
Suisse Group is a leading global financial services company headquartered
in Zurich. Credit Suisse – Credit Suisse Group's banking arm – provides
clients worldwide with investment banking, private banking and asset management
services. It provides companies, institutional clients and high-net-worth
private clients worldwide, as well as retail clients in Switzerland, with
specialist advisory services, comprehensive solutions, and innovative products.
Credit Suisse Group also includes Winterthur, a Swiss general insurer with a focus on international business activities. Credit Suisse Group is active in over 50 countries and employs approximately 63,000 people. Credit Suisse Group registered shares (CSGN) are listed in Switzerland and, in the form of American Depositary Shares (CSR), in New York. Further information about Credit Suisse Group and Credit Suisse can be found at www.credit-suisse.com. Further information about Winterthur can be found at www.winterthur.com.
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.
|
Media Release |
| May 2, 2006 Page 6/6 |
Presentation of Credit Suisse
Group’s First-Quarter 2006 Results
via Audio Webcast and Telephone Conference
| Date | Tuesday, May 2, 2006 | |||||
| Time | 10:00 CEST / 09:00 BST / 04:00 EST | |||||
| Speaker | Renato Fassbind, Chief Financial Officer of Credit Suisse Group | |||||
| The presentation will be held in English. | ||||||
| Audio Webcast | www.credit-suisse.com/results | |||||
| Telephone | Europe: | +41 91 610 5600 | ||||
| UK: | +44 207 107 0611 | |||||
| US: | +1 866 291 4166 | |||||
| Reference: ‘Credit Suisse Group quarterly results’ | ||||||
| Q&A session | You will have the opportunity to ask questions during the telephone conference following the presentation. | |||||
| Playbacks | Audio playback available approximately 3 hours after the event at: | |||||
| www.credit-suisse.com/results | ||||||
| Telephone replay available approximately 1 hour after the event on | ||||||
| Europe: | +41 91 612 4330 | |||||
| UK: | +44 207 108 6233 | |||||
| US: | +1 866 416 2558 | |||||
| Conference ID: 176# | ||||||
| Note | We recommend that you dial in approximately 10 minutes before the start of the presentation for the audio webcast and telephone conference. Further instructions and technical test functions are available on our website. | |||||
 |
|
Credit Suisse Group Letter to Shareholders 2006/Q1 |
 |
 |
| Oswald J. Grübel | Walter B. Kielholz |
| Chief Executive Officer | Chairman of the Board of Directors |
| Walter B. Kielholz | Oswald J. Grübel |
| Chairman of the Board of Directors | Chief Executive Officer |
| May 2006 |
| Key information | ||||||||
| in CHF m, except where indicated | 1Q2006 | 1Q2005 | Change in % from 1Q2005 | |||||
| Net revenues | 5,757 | 3,994 | 44 | |||||
| of which underwriting revenues | 705 | 410 | 72 | |||||
| of which advisory and other fees | 333 | 225 | 48 | |||||
| of which total trading revenues | 4,844 | 3,182 | 52 | |||||
| Provision for credit losses | (55) | (19) | 189 | |||||
| Total operating expenses | 4,248 | 3,081 | 38 | |||||
| Income from continuing operations before taxes | 1,564 | 932 | 68 | |||||
| Pre-tax income margin | 27.2% | 23.3% | – | |||||
| Pre-tax return on average economic risk capital | 42.0% | 35.8% | – | |||||
 |
 |
| Key information | ||||||||
| in CHF m, except where indicated | 1Q2006 | 1Q2005 | Change in % from 1Q2005 | |||||
| Net revenues | 3,110 | 2,539 | 22 | |||||
| Provision for credit losses | (8) | (16) | (50) | |||||
| Total operating expenses | 1,810 | 1,581 | 14 | |||||
| Income from continuing operations before taxes | 1,308 | 974 | 34 | |||||
| of which Wealth Management | 963 | 643 | 50 | |||||
| of which Corporate & Retail Banking | 345 | 331 | 4 | |||||
| Pre-tax income margin | 42.1% | 38.4% | – | |||||
| Net new assets, in CHF bn | 14.8 | 14.1 | – | |||||
| Assets under managment, in CHF bn | 882.7 | 837.6 | 1) | 5.4 | ||||
| 1) As of December 31, 2005. | ||||||||
 |
 |
| Key information | ||||||||
| in CHF m, except where indicated | 1Q2006 | 1Q2005 | Change in % from 1Q2005 | |||||
| Net revenues | 756 | 614 | 23 | |||||
| of which asset management revenues | 494 | 472 | 5 | |||||
| of which private equity commissions and fees | 56 | 57 | (2) | |||||
| of which private equity gains | 206 | 85 | 142 | |||||
| Total operating expenses | 520 | 406 | 28 | |||||
| Income from continuing operations before taxes | 234 | 208 | 13 | |||||
| Pre-tax income margin | 31.0% | 33.9% | – | |||||
| Net new assets, in CHF bn | 17.0 | 3.9 | – | |||||
| Assets under management, in CHF bn | 619.6 | 589.4 | 1) | 5.1 | ||||
| 1) As of December 31, 2005. | ||||||||
 |
 |
| Key information | ||||||||
| in CHF m, except where indicated | 1Q2006 | 1Q2005 | Change in % from 1Q2005 | |||||
| Total business volume | 12,737 | 11,450 | 11 | |||||
| Gross premiums written | 10,657 | 9,955 | 7 | |||||
| Total benefits, claims, dividends and credit losses | 9,359 | 7,982 | 17 | |||||
| Total operating expenses | 1,051 | 1,085 | (3) | |||||
| Income from continuing operations before taxes | 505 | 418 | 21 | |||||
| Net income | 357 | 251 | 42 | |||||
| Return on equity | 15.0% | 12.0% | – | |||||
| Life & Pensions – expense ratio | 4.2% | 5.8% | – | |||||
| Non-Life – combined ratio | 93.5% | 96.7% | – | |||||
|
Consolidated statements of income (unaudited) |
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Interest and dividend income | 12,555 | 11,560 | 8,808 | 9 | 43 | |||||||
| Interest expense | (9,685) | (9,132) | (5,760) | 6 | 68 | |||||||
| Net interest income | 2,870 | 2,428 | 3,048 | 18 | (6) | |||||||
| Commissions and fees | 4,271 | 4,096 | 3,237 | 4 | 32 | |||||||
| Trading revenues | 4,311 | 1,814 | 1,828 | 138 | 136 | |||||||
| Realized gains/(losses) from investment securities, net | 358 | 261 | 421 | 37 | (15) | |||||||
| Insurance net premiums earned | 8,204 | 4,478 | 7,596 | 83 | 8 | |||||||
| Other revenues | 1,765 | 1,061 | 767 | 66 | 130 | |||||||
| Total noninterest revenues | 18,909 | 11,710 | 13,849 | 61 | 37 | |||||||
| Net revenues | 21,779 | 14,138 | 16,897 | 54 | 29 | |||||||
| Policyholder benefits, claims and dividends | 9,372 | 4,786 | 7,984 | 96 | 17 | |||||||
| Provision for credit losses | (60) | (27) | (36) | 122 | 67 | |||||||
| Total benefits, claims and credit losses | 9,312 | 4,759 | 7,948 | 96 | 17 | |||||||
| Insurance underwriting, acquisition and administration expenses | 998 | 979 | 1,029 | 2 | (3) | |||||||
| Banking compensation and benefits | 4,472 | 3,982 | 3,296 | 12 | 36 | |||||||
| Other expenses | 2,211 | 2,729 | 1,791 | (19) | 23 | |||||||
| Restructuring charges | 5 | 3 | 0 | 67 | – | |||||||
| Total operating expenses | 7,686 | 7,693 | 6,116 | 0 | 26 | |||||||
| Income from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes | 4,781 | 1,686 | 2,833 | 184 | 69 | |||||||
| Income tax expense | 860 | 85 | 627 | – | 37 | |||||||
| Minority interests | 1,316 | 511 | 301 | 158 | 337 | |||||||
| Income from continuing operations before extraordinary items and cumulative effect of accounting changes | 2,605 | 1,090 | 1,905 | 139 | 37 | |||||||
| Income/(loss) from discontinued operations, net of tax | 23 | 13 | (9) | 77 | – | |||||||
| Extraordinary items, net of tax | (24) | 0 | 0 | – | – | |||||||
| Cumulative effect of accounting changes, net of tax | 0 | 0 | 14 | – | – | |||||||
| Net income | 2,604 | 1,103 | 1,910 | 136 | 36 | |||||||
| 1Q2006 | 4Q2005 | 1Q2005 | ||||||
| Basic earnings per share, in CHF | ||||||||
| Income from continuing operations before cumulative effect of accounting changes | 2.31 | 0.97 | 1.64 | |||||
| Income/(loss) from discontinued operations, net of tax | 0.02 | 0.01 | (0.01) | |||||
| Extraordinary items, net of tax | (0.02) | 0.00 | 0.00 | |||||
| Cumulative effect of accounting changes, net of tax | 0.00 | 0.00 | 0.01 | |||||
| Net income available for common shares | 2.31 | 0.98 | 1.64 | |||||
| Diluted earnings per share, in CHF | ||||||||
| Income from continuing operations before cumulative effect of accounting changes | 2.21 | 0.94 | 1.63 | |||||
| Income/(loss) from discontinued operations, net of tax | 0.02 | 0.01 | (0.01) | |||||
| Extraordinary items, net of tax | (0.02) | 0.00 | 0.00 | |||||
| Cumulative effect of accounting changes, net of tax | 0.00 | 0.00 | 0.01 | |||||
| Net income available for common shares | 2.21 | 0.95 | 1.63 | |||||
|
Consolidated balance sheets (unaudited) |
| in CHF m | 31.03.06 | 31.12.05 | Change in % from 31.12.05 | |||||
| Assets | ||||||||
| Cash and due from banks | 34,789 | 27,577 | 26 | |||||
| Interest-bearing deposits with banks | 6,722 | 6,143 | 9 | |||||
| Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions | 344,475 | 352,281 | (2) | |||||
| Securities received as collateral | 30,377 | 23,950 | 27 | |||||
| Trading assets (of which CHF 153,512 m and CHF 151,793 m encumbered) | 460,847 | 435,250 | 6 | |||||
| Investment securities (of which CHF 2,371 m and CHF 2,456 m encumbered) | 120,931 | 121,565 | (1) | |||||
| Other investments | 28,474 | 20,736 | 37 | |||||
| Loans, net of allowance for loan losses of CHF 2,054 m and CHF 2,241 m | 215,496 | 205,671 | 5 | |||||
| Premises and equipment | 7,430 | 7,427 | 0 | |||||
| Goodwill | 12,830 | 12,932 | (1) | |||||
| Other intangible assets | 3,419 | 3,091 | 11 | |||||
| Assets held for separate accounts | 13,544 | 11,875 | 14 | |||||
| Other assets (of which CHF 29,418 m and CHF 4,860 m encumbered) | 154,287 | 110,554 | 40 | |||||
| Total assets | 1,433,621 | 1,339,052 | 7 | |||||
| Liabilities and shareholders' equity | ||||||||
| Deposits | 383,361 | 364,238 | 5 | |||||
| Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions | 302,780 | 309,803 | (2) | |||||
| Obligation to return securities received as collateral | 30,377 | 23,950 | 27 | |||||
| Trading liabilities | 219,523 | 194,225 | 13 | |||||
| Short-term borrowings (of which CHF 2,078 m reported at fair value as of March 31, 2006) | 20,981 | 19,472 | 8 | |||||
| Provisions from the insurance business | 155,713 | 148,414 | 5 | |||||
| Long-term debt (of which CHF 40,461 m reported at fair value as of March 31, 2006) | 141,509 | 132,975 | 6 | |||||
| Liabilities held for separate accounts | 13,544 | 11,875 | 14 | |||||
| Other liabilities | 107,133 | 84,135 | 27 | |||||
| Minority interests | 16,070 | 7,847 | 105 | |||||
| Total liabilities | 1,390,991 | 1,296,934 | 7 | |||||
| Common shares | 624 | 624 | 0 | |||||
| Additional paid-in capital | 24,716 | 24,639 | 0 | |||||
| Retained earnings | 27,248 | 24,584 | 11 | |||||
| Treasury shares, at cost | (7,349) | (5,823) | 26 | |||||
| Accumulated other comprehensive income/(loss) | (2,609) | (1,906) | 37 | |||||
| Total shareholders' equity | 42,630 | 42,118 | 1 | |||||
| Total liabilities and shareholders' equity | 1,433,621 | 1,339,052 | 7 | |||||
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For further information, please refer to our Quarterly Report 2006/Q1, which is available at: www.credit-suisse.com/results
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CREDIT SUISSE GROUP Paradeplatz 8 CH-8070 Zürich Switzerland www.credit-suisse.com
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5520174 English
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Credit Suisse Group Quarterly Report 2006/Q1 |
 |
| Credit Suisse Group financial highlights | ||||||||||||
| in CHF m, except where indicated | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Consolidated statements of income | ||||||||||||
| Net revenues | 21,779 | 14,138 | 16,897 | 54 | 29 | |||||||
| Income from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes | 4,781 | 1,686 | 2,833 | 184 | 69 | |||||||
| Net income | 2,604 | 1,103 | 1,910 | 136 | 36 | |||||||
| Return on equity | ||||||||||||
| Return on equity – Group | 24.4% | 11.2% | 20.6% | – | – | |||||||
| Return on equity – Banking | 27.4% | 10.8% | 22.9% | – | – | |||||||
| Return on equity – Insurance | 15.0% | 11.4% | 12.0% | – | – | |||||||
| Earnings per share | ||||||||||||
| Basic earnings per share, in CHF | 2.31 | 0.98 | 1.64 | – | – | |||||||
| Diluted earnings per share, in CHF | 2.21 | 0.95 | 1.63 | – | – | |||||||
| Cost/income ratio – Banking | 68.4% | 78.9% | 70.9% | – | – | |||||||
| Net new assets, in CHF bn | 31.1 | 7.8 | 15.4 | – | – | |||||||
| in CHF m, except where indicated | 31.03.06 | 31.12.05 | Change in % from 31.12.05 | |||||
| Assets under management, in CHF bn | 1,553.6 | 1,484.3 | 4.7 | |||||
| Consolidated balance sheets | ||||||||
| Total assets | 1,433,621 | 1,339,052 | 7 | |||||
| Shareholders' equity | 42,630 | 42,118 | 1 | |||||
| Consolidated BIS capital data | ||||||||
| Risk-weighted assets | 248,116 | 232,891 | 7 | |||||
| Tier 1 ratio | 10.8% | 11.3% | – | |||||
| Total capital ratio | 13.5% | 13.7% | – | |||||
| Number of employees | ||||||||
| Switzerland – Banking | 20,026 | 20,194 | (1) | |||||
| Switzerland – Insurance | 5,878 | 5,928 | (1) | |||||
| Outside Switzerland – Banking | 23,621 | 24,370 | (3) | |||||
| Outside Switzerland – Insurance | 12,994 | 13,031 | 0 | |||||
| Number of employees (full-time equivalents) | 62,519 | 63,523 | (2) | |||||
| Stock market data | ||||||||
| Share price per registered share, in CHF | 73.15 | 67.00 | 9 | |||||
| High (closing price) year-to-date, in CHF | 78.45 | 68.50 | 15 | |||||
| Low (closing price) year-to-date, in CHF | 68.25 | 46.85 | 46 | |||||
| Share price per American Depositary Share, in USD | 55.86 | 50.95 | 10 | |||||
| Market capitalization, in CHF m | 80,900 | 75,399 | 7 | |||||
| Market capitalization, in USD m | 61,778 | 57,337 | 8 | |||||
| Book value per share, in CHF | 38.55 | 37.43 | 3 | |||||
| Share information | ||||||||
| Shares issued | 1,247,752,166 | 1,247,752,166 | 0 | |||||
| Treasury shares | (141,809,733) | (122,391,983) | 16 | |||||
| Shares outstanding | 1,105,942,433 | 1,125,360,183 | (2) | |||||
| Financial calendar | ||||
| Second quarter results 2006 | Wednesday, August 2, 2006 | |||
| Third quarter results 2006 | Thursday, November 2, 2006 | |||
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Cover:
Mauriz Lang and Andreas Nedoma, Advisory & Fulfillment, Private Banking, Zürich
Photographer:
John Wildgoose
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Oswald J. Grübel
Chief Executive Officer Credit Suisse Group |
| The following tables set forth an overview of segment results: | ||||||||||||||||
| 1Q2006, in CHF m | Investment Banking | Private Banking | Asset Management | Total Banking | Winterthur | Corporate Center | 1) | Credit Suisse Group | ||||||||
| Net revenues | 5,757 | 3,110 | 756 | 9,623 | 10,915 | 1,241 | 21,779 | |||||||||
| Policyholder benefits, claims and dividends | – | – | – | – | 9,358 | 14 | 9,372 | |||||||||
| Provision for credit losses | (55) | (8) | 2 | (61) | 1 | 0 | (60) | |||||||||
| Total benefits, claims and credit losses | (55) | (8) | 2 | (61) | 9,359 | 14 | 9,312 | |||||||||
| Insurance underwriting, acquisition and administration expenses | – | – | – | – | 998 | 0 | 998 | |||||||||
| Banking compensation and benefits | 3,080 | 1,071 | 261 | 4,412 | – | 60 | 4,472 | |||||||||
| Other expenses | 1,168 | 739 | 259 | 2,166 | 48 | (3) | 2,211 | |||||||||
| Restructuring charges | 0 | 0 | 0 | 0 | 5 | 0 | 5 | |||||||||
| Total operating expenses | 4,248 | 1,810 | 520 | 6,578 | 1,051 | 57 | 7,686 | |||||||||
| Income from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes | 1,564 | 1,308 | 234 | 3,106 | 505 | 1,170 | 2) | 4,781 | ||||||||
| 1Q2005, in CHF m | Investment Banking | Private Banking | Asset Management | Total Banking | Winterthur | Corporate Center | 1) | Credit Suisse Group | ||||||||
| Net revenues | 3,994 | 2,539 | 614 | 7,147 | 9,485 | 265 | 16,897 | |||||||||
| Policyholder benefits, claims and dividends | – | – | – | – | 7,984 | 0 | 7,984 | |||||||||
| Provision for credit losses | (19) | (16) | 0 | (35) | (2) | 1 | (36) | |||||||||
| Total benefits, claims and credit losses | (19) | (16) | 0 | (35) | 7,982 | 1 | 7,948 | |||||||||
| Insurance underwriting, acquisition and administration expenses | – | – | – | – | 1,026 | 3 | 1,029 | |||||||||
| Banking compensation and benefits | 2,135 | 906 | 225 | 3,266 | – | 30 | 3,296 | |||||||||
| Other expenses | 946 | 675 | 181 | 1,802 | 58 | (69) | 1,791 | |||||||||
| Restructuring charges | 0 | 0 | 0 | 0 | 1 | (1) | 0 | |||||||||
| Total operating expenses | 3,081 | 1,581 | 406 | 5,068 | 1,085 | (37) | 6,116 | |||||||||
| Income from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes | 932 | 974 | 208 | 2,114 | 418 | 301 | 3) | 2,833 | ||||||||
| 1) Includes consolidation eliminations, revenues and expenses from certain parent company investments and certain other revenues and expenses not allocated to the segments. | ||||||||||||||||
| 2) Includes minority interest income of CHF 1,275 million from the consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest in such income. | ||||||||||||||||
| 3) Includes minority interest income of CHF 272 million from the consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest in such income. | ||||||||||||||||
| The following table presents the Group's condensed consolidated statement of income: | ||||||||||||||
| Credit Suisse Group | ||||||||||||||
| in CHF m | 1Q2006 | 1Q2005 | Change in % from 1Q2005 | |||||||||||
| Net revenues | 21,779 | 16,897 | 29 | |||||||||||
| Policyholder benefits, claims and dividends | 9,372 | 7,984 | 17 | |||||||||||
| Provision for credit losses | (60) | (36) | 67 | |||||||||||
| Total benefits, claims and credit losses | 9,312 | 7,948 | 17 | |||||||||||
| Insurance underwriting, acquisition and administration expenses | 998 | 1,029 | (3) | |||||||||||
| Banking compensation and benefits | 4,472 | 3,296 | 36 | |||||||||||
| Other expenses | 2,211 | 1,791 | 23 | |||||||||||
| Restructuring charges | 5 | 0 | – | |||||||||||
| Total operating expenses | 7,686 | 6,116 | 26 | |||||||||||
| Income from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes | 4,781 | 2,833 | 69 | |||||||||||
| Income tax expense/(benefit) | 860 | 627 | 37 | |||||||||||
| Minority interests | 1,316 | 301 | 337 | |||||||||||
| Income from continuing operations | 2,605 | 1,905 | 37 | |||||||||||
| Income/(loss) from discontinued operations, net of tax | 23 | (9) | – | |||||||||||
| Extraordinary items, net of tax | (24) | 0 | – | |||||||||||
| Cumulative effect of accounting changes, net of tax | 0 | 14 | – | |||||||||||
| Net income | 2,604 | 1,910 | 36 | |||||||||||
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| The following table presents the results of the Investment Banking segment: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Net interest income | 748 | 421 | 1,016 | 78 | (26) | |||||||
| Commissions and fees | 1,942 | 1,984 | 1,327 | (2) | 46 | |||||||
| Trading revenues and realized gains/(losses) from investment securities, net | 2,943 | 1,203 | 1,484 | 145 | 98 | |||||||
| Other revenues | 124 | 127 | 167 | (2) | (26) | |||||||
| Total noninterest revenues | 5,009 | 3,314 | 2,978 | 51 | 68 | |||||||
| Net revenues | 5,757 | 3,735 | 3,994 | 54 | 44 | |||||||
| Provision for credit losses | (55) | (13) | (19) | 323 | 189 | |||||||
| Compensation and benefits | 3,080 | 2,136 | 2,135 | 44 | 44 | |||||||
| Other expenses | 1,168 | 1,326 | 946 | (12) | 23 | |||||||
| Total operating expenses | 4,248 | 3,462 | 3,081 | 23 | 38 | |||||||
| Income from continuing operations before taxes | 1,564 | 286 | 932 | 447 | 68 | |||||||
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Total investment banking revenues include debt underwriting, equity underwriting and advisory and other fees. In the first quarter of 2006, investment banking revenues totaled CHF 1,038 million, up CHF 403 million, or 63%, versus the first quarter of 2005, reflecting significant increases in both underwriting and advisory and other fees. In line with its strategy, Investment Banking continued to build on its industry-leading platform in the emerging markets. Among the many awards received in the quarter, Credit Suisse was named “Best Investment Bank in Latin America” by
Latin Finance
and was recognized for its leadership last year across investment banking products, particularly in the competitive equity underwriting market. This award provided further confirmation of Credit Suisse’s momentum in the region and commitment to providing best-in-class products throughout the emerging markets and globally.
Debt underwriting revenues in the first quarter of 2006 were CHF 456 million, up CHF 185 million, or 68%, compared to the first quarter of 2005. These results reflect higher revenues in leveraged finance, asset-backed securities and investment grade capital markets, with global industry-wide investment grade debt underwriting reaching record volumes and high-yield debt underwriting recovering from lower volumes in the three previous quarters, benefiting from strong global mergers and acquisitions activity. For the first quarter of 2006, Credit Suisse ranked third in global high-yield securities new issuance volumes. The high-yield market continued to be very competitive among the top firms. The overall leveraged finance franchise remained strong and corporate issuance continued the trend seen in 2005 with the shift from high-yield securities to the syndicated loan market. Investment Banking continued to focus on profitability rather than league table rankings in the investment grade capital markets business, consistent with its strategy to focus on high-margin products. Equity underwriting revenues in the first quarter of 2006 were CHF 249 million, up CHF 110 million, or 79%, compared to the first quarter of 2005, reflecting higher industry-wide equity issuance activity, including higher convertible securities activity, and improved market share. Equity underwriting revenues decreased 27% compared to the strong fourth quarter of 2005, due primarily to lower global industry-wide equity issuances. Credit Suisse ranked third for the first quarter of 2006 in global initial public offering market share. Credit Suisse participated in a number of key equity transactions in the quarter across a broad range of industries and geographies, including a convertible bond issue for Bayer AG and initial public offerings for QinetiQ Group plc (privatization of a UK provider of defense technology and security solutions) and Partners Group (one of the largest independent global alternative asset managers). In addition, Credit Suisse was the sole global coordinator for the privatization of Grupo Aeroportuario del Pacifico, S.A. de C.V. (a network of 12 national airport assets), Mexico’s largest initial public offering in fifteen years. |
| The following table presents the revenue details of the Investment Banking segment: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Debt underwriting | 456 | 394 | 271 | 16 | 68 | |||||||
| Equity underwriting | 249 | 343 | 139 | (27) | 79 | |||||||
| Underwriting | 705 | 737 | 410 | (4) | 72 | |||||||
| Advisory and other fees | 333 | 448 | 225 | (26) | 48 | |||||||
| Total investment banking | 1,038 | 1,185 | 635 | (12) | 63 | |||||||
| Fixed income | 2,767 | 1,566 | 2,116 | 77 | 31 | |||||||
| Equity | 2,077 | 1,021 | 1,066 | 103 | 95 | |||||||
| Total trading | 4,844 | 2,587 | 3,182 | 87 | 52 | |||||||
| Other (including loan portfolio) | (125) | (37) | 177 | 238 | – | |||||||
| Net revenues | 5,757 | 3,735 | 3,994 | 54 | 44 | |||||||
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Advisory and other fees of CHF 333 million in the first quarter of 2006 were up CHF 108 million, or 48%, compared to the first quarter of 2005, which was negatively impacted by lower announced transaction volumes in late 2004 and the timing of fees. Advisory and other fees declined 26% compared to the fourth quarter of 2005, due primarily to lower industry-wide completed mergers and acquisitions activity and lower market share. Credit Suisse ranked eleventh in global announced mergers and acquisitions and fourteenth in global completed mergers and acquisitions for the first quarter of 2006. Notable transactions announced in the first quarter of 2006 included Bayer AG’s acquisition of Schering AG, the sale of Pixar Animation Studios to the Walt Disney Company and the McClatchy Company’s acquisition of Knight-Ridder Inc.
Total trading revenues include results from fixed income and equity sales and trading. Total trading revenues for the first quarter of 2006 were CHF 4,844 million, up CHF 1,662 million, or 52%, versus the first quarter of 2005, due to strength in both fixed income and equity trading revenues and favorable market conditions. Total trading revenues increased 87% compared to the fourth quarter of 2005, reflecting improved results in both equity and fixed income trading. Investment Banking’s average daily VaR in the first quarter of 2006 was CHF 72 million, up from CHF 67 million in the first quarter of 2005 and up from CHF 71 million in the fourth quarter of 2005. Average ERC increased CHF 4.7 billion versus the first quarter of 2005 and CHF 0.8 billion versus the fourth quarter of 2005, in line with the strategy to extend incremental capital to support high-growth and high-margin activities with notable increases in the leveraged finance, structured products and proprietary trading businesses. Fixed income trading recorded revenues of CHF 2,767 million in the first quarter of 2006. These results were up CHF 651 million, or 31%, compared to the first quarter of 2005, reflecting strong results in leveraged finance, fixed income proprietary trading, Latin America trading and global foreign exchange positioning, partially offset by weaker results in other emerging markets trading, asset-backed securities and commercial mortgage-backed securities. Fixed income markets in the first quarter of 2006 were generally favorable, with narrowing credit spreads and a substantial increase in new issue activity. The results in the first quarter of 2005 reflected a CHF 125 million positive adjustment to the valuation of over-the-counter derivatives in connection with enhancements to bring Credit Suisse’s estimates of fair value closer to how the dealer market prices such derivatives. Compared to the fourth quarter of 2005, fixed income trading revenues increased by 77%, due primarily to higher revenues in leveraged finance, residential mortgage-backed securities, emerging markets trading, global foreign exchange positioning and fixed income proprietary trading, partially offset by weaker results in commercial mortgage-backed securities. Interest rate products performed well despite the flat yield curve. Consistent with the strategy to grow the commodities business, Credit Suisse announced during the quarter a strategic alliance with Glencore International to build a derivatives and structured products trading business in the oil and petroleum products market. Equity trading revenues increased CHF 1,011 million, or 95%, and CHF 1,056 million, or 103%, to CHF 2,077 million, compared to the first quarter of 2005 and the fourth quarter of 2005, respectively. These significant increases reflected higher revenues across all major business areas amid strong markets. The customer flow businesses in cash and convertibles performed well across all regions. Equity proprietary trading exhibited strong results across most regions and strategies and equity derivatives benefited from increased deal flow and good trading results. Prime services continued to perform well with higher revenues in the quarter. Credit Suisse solidified its position as a Best in Class prime broker in the top tier of the market, according to the 2006 Global Custodian Prime Brokerage survey. In line with furthering Credit Suisse’s leading global emerging markets franchise, Credit Suisse and Standard Bank in South Africa announced a new joint venture known as Credit Suisse Standard Securities to focus on equities research, sales, trading and capital markets transactions in South Africa. The combination of Credit Suisse’s global equity franchise with Standard Bank’s local expertise will provide institutional clients with analysis and access to the South African equity market, which is a significant component of many emerging market indices. Other (including loan portfolio) recorded a loss of CHF 125 million for the first quarter of 2006 compared to revenues of CHF 177 million in the first quarter of 2005, due primarily to lower gains from private equity-related investments not managed as part of Asset Management and credit default swap losses related to the loan portfolio. Investment Banking selectively hedges the loan book using credit default swaps, which recorded weaker performance as a result of tightening credit spreads. |
| The following tables present key information of the Investment Banking segment: | |||||||||||||
| 1Q2006 | 4Q2005 | 1Q2005 | |||||||||||
| Cost/income ratio | 73.8% | 92.7% | 77.1% | ||||||||||
| Pre-tax income margin | 27.2% | 7.7% | 23.3% | ||||||||||
| Compensation/revenue ratio | 53.5% | 57.2% | 53.5% | ||||||||||
| Average economic risk capital, in CHF m | 15,871 | 15,109 | 11,221 | ||||||||||
| Pre-tax return on average economic risk capital 1) | 42.0% | 10.3% | 35.8% | ||||||||||
| Average one-day, 99% VaR, in CHF m | 72 | 71 | 67 | ||||||||||
| 1) Calculated using a return excluding funding costs for allocated goodwill. | |||||||||||||
| 31.03.06 | 31.12.05 | Change in % from 31.12.05 | ||||||
| Total loans | 39,654 | 34,762 | 14 | |||||
| Non-performing loans/total loans | 0.7% | 0.4% | – | |||||
| Impaired loans/total loans | 1.5% | 1.5% | – | |||||
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| The following table presents the results of the Private Banking segment: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Net interest income | 966 | 924 | 922 | 5 | 5 | |||||||
| Commissions and fees | 1,807 | 1,535 | 1,403 | 18 | 29 | |||||||
| Trading revenues and realized gains/(losses) from investment securities, net | 303 | 236 | 167 | 28 | 81 | |||||||
| Other revenues | 34 | 21 | 47 | 62 | (28) | |||||||
| Total noninterest revenues | 2,144 | 1,792 | 1,617 | 20 | 33 | |||||||
| Net revenues | 3,110 | 2,716 | 2,539 | 15 | 22 | |||||||
| Provision for credit losses | (8) | (21) | (16) | (62) | (50) | |||||||
| Compensation and benefits | 1,071 | 888 | 906 | 21 | 18 | |||||||
| Other expenses | 739 | 823 | 675 | (10) | 9 | |||||||
| Total operating expenses | 1,810 | 1,711 | 1,581 | 6 | 14 | |||||||
| Income from continuing operations before taxes | 1,308 | 1,026 | 974 | 27 | 34 | |||||||
| The following tables present key information of the Private Banking segment: | |||||||||||||
| 1Q2006 | 4Q2005 | 1Q2005 | |||||||||||
| Cost/income ratio | 58.2% | 63.0% | 62.3% | ||||||||||
| Pre-tax income margin | 42.1% | 37.8% | 38.4% | ||||||||||
| Net new assets, in CHF bn | 14.8 | 8.9 | 14.1 | ||||||||||
| Average economic risk capital, in CHF m | 4,778 | 4,743 | 4,655 | ||||||||||
| Pre-tax return on average economic risk capital 1) | 111.1% | 88.2% | 84.8% | ||||||||||
| 1) Calculated using a return excluding funding costs for allocated goodwill. | |||||||||||||
| 31.03.06 | 31.12.05 | Change in % from 31.12.05 | ||||||
| Assets under management, in CHF bn | 882.7 | 837.6 | 5.4 | |||||
| The following table presents the results of the Wealth Management business: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Net interest income | 458 | 396 | 411 | 16 | 11 | |||||||
| Total noninterest revenues | 1,769 | 1,472 | 1,294 | 20 | 37 | |||||||
| Net revenues | 2,227 | 1,868 | 1,705 | 19 | 31 | |||||||
| Provision for credit losses | 0 | 2 | 3 | – | – | |||||||
| Compensation and benefits | 735 | 596 | 589 | 23 | 25 | |||||||
| Other expenses | 529 | 567 | 470 | (7) | 13 | |||||||
| Total operating expenses | 1,264 | 1,163 | 1,059 | 9 | 19 | |||||||
| Income from continuing operations before taxes | 963 | 703 | 643 | 37 | 50 | |||||||
| The following tables present key information of the Wealth Management business: | ||||||||
| 1Q2006 | 4Q2005 | 1Q2005 | ||||||
| Cost/income ratio | 56.8% | 62.3% | 62.1% | |||||
| Pre-tax income margin | 43.2% | 37.6% | 37.7% | |||||
| Net new assets, in CHF bn | 14.5 | 6.8 | 11.1 | |||||
| Net new asset growth (rolling four quarter average) | 7.8% | 7.5% | 5.3% | |||||
| Net new asset growth | 8.4% | 4.0% | 7.8% | |||||
| Gross margin on assets under management | 124.6 bp | 109.4 bp | 117.2 bp | |||||
| of which asset-based | 73.1 bp | 70.3 bp | 77.8 bp | |||||
| of which transaction-based | 51.5 bp | 39.1 bp | 39.4 bp | |||||
| Net margin (pre-tax) on assets under management | 53.9 bp | 41.2 bp | 44.2 bp | |||||
| 31.03.06 | 31.12.05 | Change in % from 31.12.05 | ||||||
| Assets under management, in CHF bn | 733.7 | 693.3 | 5.8 | |||||
| The following table presents the results of the Corporate & Retail Banking business: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Net interest income | 508 | 528 | 512 | (4) | (1) | |||||||
| Total noninterest revenues | 375 | 319 | 323 | 18 | 16 | |||||||
| Net revenues | 883 | 847 | 835 | 4 | 6 | |||||||
| Provision for credit losses | (8) | (23) | (19) | (65) | (58) | |||||||
| Compensation and benefits | 336 | 291 | 318 | 15 | 6 | |||||||
| Other expenses | 210 | 257 | 205 | (18) | 2 | |||||||
| Total operating expenses | 546 | 548 | 523 | 0 | 4 | |||||||
| Income from continuing operations before taxes | 345 | 322 | 331 | 7 | 4 | |||||||
| The following tables present key information of the Corporate & Retail Banking business: | |||||||||||||
| 1Q2006 | 4Q2005 | 1Q2005 | |||||||||||
| Cost/income ratio | 61.8% | 64.7% | 62.6% | ||||||||||
| Pre-tax income margin | 39.1% | 38.0% | 39.6% | ||||||||||
| Net new assets, in CHF bn | 0.3 | 2.1 | 3.0 | ||||||||||
| Average economic risk capital, in CHF m | 2,858 | 3,041 | 3,168 | ||||||||||
| Pre-tax return on average economic risk capital 1) | 48.4% | 42.4% | 41.8% | ||||||||||
| 1) Calculated using a return excluding funding costs for allocated goodwill. | |||||||||||||
| 31.03.06 | 31.12.05 | Change in % from 31.12.05 | ||||||
| Assets under management, in CHF bn | 149.0 | 144.3 | 3.3 | |||||
| Mortgage loans, in CHF bn | 67.2 | 66.3 | 1.4 | |||||
| Other loans, in CHF bn | 31.7 | 28.3 | 12.0 | |||||
| Non-performing loans/total loans | 1.6% | 1.9% | (15.8) | |||||
| Impaired loans/total loans | 2.2% | 2.6% | (15.4) | |||||
| Number of branches | 215 | 215 | 0.0 | |||||
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Wealth
Management
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Corporate & Retail
Banking
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| The following table presents the results of the Asset Management segment: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Net interest income | (19) | (22) | (13) | (14) | 46 | |||||||
| Commissions and fees | 561 | 539 | 524 | 4 | 7 | |||||||
| Trading revenues and realized gains/(losses) from investment securities, net | (11) | 10 | 7 | – | – | |||||||
| Other revenues | 225 | 230 | 96 | (2) | 134 | |||||||
| Total noninterest revenues | 775 | 779 | 627 | (1) | 24 | |||||||
| Net revenues | 756 | 757 | 614 | 0 | 23 | |||||||
| Provision for credit losses | 2 | 0 | 0 | – | – | |||||||
| Compensation and benefits | 261 | 252 | 225 | 4 | 16 | |||||||
| Other expenses | 259 | 264 | 181 | (2) | 43 | |||||||
| of which commission expenses | 84 | 86 | 63 | (2) | 33 | |||||||
| Total operating expenses | 520 | 516 | 406 | 1 | 28 | |||||||
| Income from continuing operations before taxes | 234 | 241 | 208 | (3) | 13 | |||||||
| The following table presents the revenue details of the Asset Management segment: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Asset management revenues | 494 | 502 | 472 | (2) | 5 | |||||||
| Private equity commissions and fees | 56 | 47 | 57 | 19 | (2) | |||||||
| Net revenues before private equity gains | 550 | 549 | 529 | 0 | 4 | |||||||
| Private equity gains | 206 | 208 | 85 | (1) | 142 | |||||||
| Net revenues | 756 | 757 | 614 | 0 | 23 | |||||||
| The following tables present key information of the Asset Management segment: | |||||||||||||
| 1Q2006 | 4Q2005 | 1Q2005 | |||||||||||
| Cost/income ratio | 68.8% | 68.2% | 66.1% | ||||||||||
| Pre-tax income margin | 31.0% | 31.8% | 33.9% | ||||||||||
| Net new assets | 17.0 | (0.8) | 3.9 | ||||||||||
| of which private equity | 2.4 | 1.3 | 0.1 | ||||||||||
| of which advisory assets | 1.0 | 3.2 | 1.1 | ||||||||||
| Gross margin on assets under management | 49.8 bp | 54.0 bp | 52.1 bp | ||||||||||
| Net margin (pre-tax) on assets under management | 15.4 bp | 17.2 bp | 17.6 bp | ||||||||||
| Average economic risk capital, in CHF m | 1,345 | 1,311 | 939 | ||||||||||
| Pre-tax return on average economic risk capital 1) | 77.7% | 82.1% | 97.1% | ||||||||||
| 1) Calculated using a return excluding funding costs for allocated goodwill. | |||||||||||||
| in CHF bn | 31.03.06 | 31.12.05 | Change in % from 31.12.05 | |||||
| Assets under management | 619.6 | 589.4 | 5.1 | |||||
| Private equity investments | 2.0 | 1.4 | 42.9 | |||||
|
Total operating expenses were CHF 520 million, an increase of CHF 114 million, or 28%, compared to the first quarter of 2005, reflecting higher performance-related compensation, higher commission expenses, costs associated with the realignment of the Asset Management business and costs associated with the branding implementation and related advertising costs.
Pre-tax income margin for the first quarter of 2006 was 31.0%, down 2.9 percentage points from the first quarter of 2005, with a 23% increase in net revenues offset by a 28% increase in total operating expenses. Compared to the fourth quarter of 2005, pre-tax income margin decreased 0.8 percentage points, reflecting stable net revenues and a slight increase in total operating expenses. Asset Management maintained its pre-tax income margin over the past year at a generally constant level, with the exception of the second quarter of 2005 which included exceptional private equity gains. Gross margin on assets under management amounted to 49.8 basis points in the first quarter of 2006, down 2.3 basis points from the first quarter of 2005, due to the inclusion of more than CHF 40 billion in low margin money market products in the fourth quarter of 2005 and the decrease in trading revenues. Pre-tax return on average economic risk capital was 77.7%, down 19.4 percentage points versus the first quarter of 2005. Average economic risk capital was higher in the first quarter of 2006, partly due to increased direct investments in alternative products. Asset Management has launched a number of initiatives to increase profitability. These initiatives will focus on improving client orientation, reducing the overall cost base and specifically targeting geographic regions with low profitability. |
| The following table presents total assets under management of the Asset Management segment by asset class: | |||||||||||||
| in CHF bn | 31.03.06 | 31.12.05 | Change in % from 31.12.05 | ||||||||||
| Money market | 71.4 | 64.1 | 11.4 | ||||||||||
| Fixed income | 116.5 | 110.0 | 5.9 | ||||||||||
| Balanced | 255.6 | 254.6 | 0.4 | ||||||||||
| Equities | 51.8 | 47.7 | 8.6 | ||||||||||
| Alternative 1) | 124.3 | 113.0 | 10.0 | ||||||||||
| of which private equity | 28.1 | 25.5 | 10.2 | ||||||||||
| Total assets under management | 619.6 | 589.4 | 5.1 | ||||||||||
| of which discretionary assets | 527.9 | 500.3 | 5.5 | ||||||||||
| of which advisory assets | 91.7 | 89.1 | 2.9 | ||||||||||
| 1) Alternative include private equity, funds of hedge funds, real estate and indexed products. | |||||||||||||
|
Assets under management increased from CHF 589.4 billion as of December 31, 2005, to CHF 619.6 billion as of March 31, 2006, reflecting market and foreign exchange-related movements of CHF 13.2 billion and net new assets of CHF 17.0 billion. Net asset inflows of CHF 18.3 billion were partly offset by outflows of CHF 1.3 billion related to movements in the German real estate market. Net inflows were mainly from money market products, fixed income, multi-asset class solution products and alternative investments and originated mainly in the US and Europe. Of the net new assets recorded in the first quarter, approximately a third related to the reinvestment in the US of money market outflows in the fourth quarter of 2005.
Asset Management expects to benefit significantly from the integration of the banking businesses through focused collaboration within Credit Suisse. As a result of this focused collaboration, Asset Management won mandates with the help of the Investment Banking and Private Banking segments. In addition, Asset Management launched initiatives together with Private Banking to increase penetration of the private client base with discretionary mandates, which is expected to provide additional high-margin returns for Credit Suisse. As part of its strategy to develop its presence in Asia, Credit Suisse announced an agreement to form a joint venture in South Korea with Woori Asset Management, in which Credit Suisse will acquire a 30% stake. The venture combines Woori Asset Management's strong onshore distribution network with Credit Suisse's expertise and knowledge of global markets. In addition to proprietary channels in the US, registered funds of hedge funds are now being sold through third party retail channels, representing a significant growth opportunity for this product. |
 |
 |
 |
| The following table presents the results of the Winterthur segment: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Gross premiums written | 10,657 | 3,657 | 9,955 | 191 | 7 | |||||||
| Net premiums earned | 8,204 | 4,478 | 7,489 | 83 | 10 | |||||||
| Net current investment income and net realized gains/(losses) | 2,540 | 1,723 | 1,852 | 47 | 37 | |||||||
| Other revenues, including fees | 171 | 180 | 144 | (5) | 19 | |||||||
| Net revenues | 10,915 | 6,381 | 9,485 | 71 | 15 | |||||||
| Policyholder benefits incurred | 7,702 | 4,113 | 7,196 | 87 | 7 | |||||||
| Investment income credited to policyholder account balances | 1,041 | 351 | 324 | 197 | 221 | |||||||
| Dividends to policyholders incurred | 615 | 328 | 464 | 88 | 33 | |||||||
| Provisions for credit losses | 1 | 8 | (2) | (88) | – | |||||||
| Total benefits, claims, dividends and credit losses | 9,359 | 4,800 | 7,982 | 95 | 17 | |||||||
| Insurance underwriting and acquisition expenses | 461 | 458 | 497 | 1 | (7) | |||||||
| Administration expenses | 537 | 519 | 529 | 3 | 2 | |||||||
| Other expenses | 48 | 118 | 58 | (59) | (17) | |||||||
| Restructuring charges | 5 | 4 | 1 | 25 | 400 | |||||||
| Total operating expenses | 1,051 | 1,099 | 1,085 | (4) | (3) | |||||||
| Income from continuing operations before taxes | 505 | 482 | 418 | 5 | 21 | |||||||
|
The growth in total business volume was driven by the Life & Pensions business, which increased 18% to CHF 8,179 million as a result of a CHF 681 million, or 13%, growth in traditional business and a CHF 578 million, or 39%, growth in investment-type products. A strong increase in traditional single premiums in the group life business in Switzerland resulted from new contracts, transfers of vested benefits and additional contributions from individuals. The growth in traditional business was further driven by premium growth in the German life and health business as well as by an increase in annual premiums in Japan. The strong growth in investment-type products was mainly driven by the UK, reflecting both strong new business performance and an increased investment inflow in anticipation of UK tax law changes that will impact treatment of pension contributions effective in the second quarter of 2006. In addition, the growth in investment-type products reflected increased contributions from Asia and Central and Eastern Europe.
Gross premiums written in the Non-Life business remained stable at CHF 4,544 million, while net premiums earned grew 2% to CHF 2,107 million, benefiting from the strengthening of the US dollar. Premium growth was mainly achieved in Switzerland due to tariff increases and in Spain due to volume increases in the non-motor business. This growth was offset by a decline in Germany, resulting from both selective re-underwriting in the non-motor business and market pressure in the motor business. Management continues to take measures to address this market pressure, including the introduction of a new competitively priced product line in October 2005 and other product initiatives. Net current investment income and net realized gains/(losses) in the first quarter of 2006 increased CHF 688 million, or 37%, compared to the first quarter of 2005, primarily reflecting the market appreciation on the underlying assets backing the unit-linked policies, which was credited to policyholders' accounts. Net investment return backing traditional life policies and non-life policies decreased 0.5 percentage points to 4.8% compared to the first quarter of 2005, reflecting a lower level of realized gains. In the first quarter of 2006, total benefits, claims, dividends and credit losses increased CHF 1,377 million, or 17%, to CHF 9,359 million, compared to the first quarter of 2005. The increase in investment income credited to policyholder account balances amounted to CHF 717 million, primarily reflecting market appreciation. The higher traditional life premium income resulted in an increase in the change in provisions for policyholders' benefits incurred by CHF 506 million, or 7%. The increase in dividends to policyholders of CHF 151 million, or 33%, was mainly driven by the improved results in the group life business in Switzerland. Total operating expenses in the first quarter of 2006 decreased CHF 34 million, or 3%, compared to the first quarter of 2005. Insurance underwriting and acquisition expenses decreased CHF 36 million, or 7%, reflecting lower amortization of deferred policy acquisition costs (DAC) and present value of future profits (PVFP). Administration expenses increased 2%, a lower rate than total business volume, reflecting sustained strict cost management, with efficiency improvements in mature markets offsetting increased expenses in growth markets. |
| The following table presents an overview of Winterthur's results by business: | |||||||||||||||||||||||||||||
| Winterthur | |||||||||||||||||||||||||||||
| 1Q2006 ,in CHF m | Life & Pensions | Non-Life | Other Activities | Corporate Center / Eliminations | 1) | 1Q2006 | 1Q2005 | Change in % from 1Q2005 | |||||||||||||||||||||
| Total business volume | 8,179 | 4,544 | 194 | (180) | 12,737 | 11,450 | 11 | ||||||||||||||||||||||
| Gross premiums written | 6,109 | 4,544 | 180 | (176) | 10,657 | 9,955 | 7 | ||||||||||||||||||||||
| Net premiums earned | 6,071 | 2,107 | 27 | (1) | 8,204 | 7,489 | 10 | ||||||||||||||||||||||
| Net revenues | 8,602 | 2,313 | 17 | (17) | 10,915 | 9,485 | 15 | ||||||||||||||||||||||
| Total benefits, claims, dividends and credit losses | 7,913 | 1,403 | 43 | 0 | 9,359 | 7,982 | 17 | ||||||||||||||||||||||
| Total operating expenses | 374 | 611 | 16 | 50 | 1,051 | 1,085 | (3) | ||||||||||||||||||||||
| Income from continuing operations before taxes and minority interests | 315 | 299 | (42) | (67) | 505 | 418 | 21 | ||||||||||||||||||||||
| Income tax expense | 145 | 132 | 10 | ||||||||||||||||||||||||||
| Minority interests | 26 | 25 | 4 | ||||||||||||||||||||||||||
| Income from continuing operations | 334 | 261 | 28 | ||||||||||||||||||||||||||
| Income/(loss) from discontinued operations, net of tax | 23 | (10) | – | ||||||||||||||||||||||||||
| Net income | 357 | 251 | 42 | ||||||||||||||||||||||||||
| 1) Includes Corporate Center expenses, certain financing costs and eliminations. | |||||||||||||||||||||||||||||
| The following tables present key information of the Winterthur segment: | ||||||||
| in CHF m, except where indicated | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Total business volume 1) | 12,737 | 5,683 | 11,450 | |||||
| Return on equity 2) | 15.0% | 11.4% | 12.0% | |||||
| 1) Gross premiums written from non-life and traditional life business and policyholder deposits on investment-type products. | ||||||||
| 2) Net income/(loss) divided by average shareholder's equity. | ||||||||
| in CHF bn, except where indicated | 31.03.06 | 31.12.05 | Change in % from 31.12.05 | |||||
| Assets under management 1) | 159.8 | 153.3 | 4.2 | |||||
| Technical provisions | 152.2 | 145.1 | 4.9 | |||||
| Shareholder's equity, in CHF m | 9,401 | 9,695 | (3) | |||||
| 1) Based upon savings-related provisions for policyholders plus off-balance sheet assets for life, pension and health businesses and investment assets for non-life business. | ||||||||
| The following table presents the results of the Life & Pensions business: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Gross premiums written | 6,109 | 2,333 | 5,428 | 162 | 13 | |||||||
| Net premiums earned | 6,071 | 2,333 | 5,391 | 160 | 13 | |||||||
| Net current investment income and net realized gains/(losses) | 2,363 | 1,568 | 1,666 | 51 | 42 | |||||||
| Other revenues, including fees | 168 | 144 | 138 | 17 | 22 | |||||||
| Net revenues | 8,602 | 4,045 | 7,195 | 113 | 20 | |||||||
| Total benefits, claims, dividends and credit losses | 7,913 | 3,410 | 6,494 | 132 | 22 | |||||||
| Insurance underwriting and acquisition expenses | 97 | 101 | 149 | (4) | (35) | |||||||
| Administration expenses | 249 | 275 | 255 | (9) | (2) | |||||||
| Other expenses | 28 | 44 | 22 | (36) | 27 | |||||||
| Total operating expenses | 374 | 420 | 426 | (11) | (12) | |||||||
| Income from continuing operations before taxes | 315 | 215 | 275 | 47 | 15 | |||||||
| The following tables present key information of the Life & Pensions business: | ||||||||
| in CHF m, except where indicated | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Total business volume 1) | 8,179 | 4,352 | 6,920 | |||||
| Expense ratio 2) | 4.2% | 8.6% | 5.8% | |||||
| 1) Gross premiums written from traditional business and policyholder deposits from investment-type products. | ||||||||
| 2) Insurance underwriting, acquisition and administration expenses as a percentage of total business volume. | ||||||||
| in CHF bn | 31.03.06 | 31.12.05 | Change in % from 31.12.05 | |||||
| Assets under management | 139.1 | 131.9 | 5.5 | |||||
| Technical provisions | 132.0 | 126.8 | 4.1 | |||||
| The following table presents the results of the Non-Life business: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Gross premiums written | 4,544 | 1,335 | 4,522 | 240 | 0 | |||||||
| Net premiums earned | 2,107 | 2,114 | 2,067 | 0 | 2 | |||||||
| Net current investment income and net realized gains/(losses) | 188 | 143 | 203 | 31 | (7) | |||||||
| Other revenues, including fees | 18 | 39 | 16 | (54) | 13 | |||||||
| Net revenues | 2,313 | 2,296 | 2,286 | 1 | 1 | |||||||
| Total benefits, claims, dividends and credit losses | 1,403 | 1,383 | 1,447 | 1 | (3) | |||||||
| Insurance underwriting and acquisition expenses | 362 | 337 | 348 | 7 | 4 | |||||||
| Administration expenses | 226 | 228 | 223 | (1) | 1 | |||||||
| Other expenses | 23 | 42 | (4) | (45) | – | |||||||
| Total operating expenses | 611 | 607 | 567 | 1 | 8 | |||||||
| Income from continuing operations before taxes | 299 | 306 | 272 | (2) | 10 | |||||||
| The following tables present key information of the Non-Life business: | ||||||||
| in % | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Combined ratio 1) | 93.5% | 90.5% | 96.7% | |||||
| Claims ratio 2) | 65.6% | 63.8% | 69.1% | |||||
| Expense ratio 3) | 27.9% | 26.7% | 27.6% | |||||
| 1) Claims and annuities incurred and 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. | ||||||||
| 3) Insurance underwriting, acquisition and administration expenses as a percentage of net premiums earned. | ||||||||
| 31.03.06 | 31.12.05 | Change in % from 31.12.05 | ||||||
| Technical provisions, in CHF bn | 19.4 | 17.5 | 10.9 | |||||
| The following table presents the results of the Other Activities business: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Gross premiums written | 180 | 1 | 192 | – | (6) | |||||||
| Net premiums earned | 27 | 29 | 31 | (7) | (13) | |||||||
| Net revenues | 17 | 49 | 32 | (65) | (47) | |||||||
| Total benefits, claims, dividends and credit losses | 43 | 6 | 42 | – | 2 | |||||||
| Total operating expenses | 16 | 64 | 49 | (75) | (67) | |||||||
| Income from continuing operations before taxes | (42) | (21) | (59) | 100 | (29) | |||||||
| The following table presents the investment income of the Winterthur segment: | ||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Net current investment income | 1,251 | 1,102 | 1,219 | 14 | 3 | |||||||
| of which backing traditional life policies and non-life policies | 1,165 | 1,075 | 1,136 | 8 | 3 | |||||||
| of which Life & Pensions | 1,005 | 935 | 995 | 7 | 1 | |||||||
| of which Non-Life | 157 | 136 | 139 | 15 | 13 | |||||||
| of which backing unit-linked liabilities general account | 86 | 27 | 83 | 219 | 4 | |||||||
| of which Life & Pensions | 86 | 27 | 83 | 219 | 4 | |||||||
| Realized gains/(losses), net | 1,289 | 620 | 633 | 108 | 104 | |||||||
| of which backing traditional life policies and non-life policies | 384 | 341 | 460 | 13 | (17) | |||||||
| of which Life & Pensions | 368 | 327 | 413 | 13 | (11) | |||||||
| of which Non-Life | 32 | 6 | 64 | 433 | (50) | |||||||
| of which backing unit-linked liabilities general account | 905 | 279 | 173 | 224 | 423 | |||||||
| of which Life & Pensions | 905 | 279 | 173 | 224 | 423 | |||||||
| Net current investment income and net realized gains/(losses) | 2,540 | 1,722 | 1,852 | 48 | 37 | |||||||
| of which backing traditional life policies and non-life policies | 1,549 | 1,416 | 1,596 | 9 | (3) | |||||||
| of which backing unit-linked liabilities general account | 991 | 306 | 256 | 224 | 287 | |||||||
| Investment income separate account | 311 | 149 | 137 | 109 | 127 | |||||||
| The following table presents the investment return of the Winterthur segment: | ||||||||||||
| 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | ||||||||
| Net current investment return backing traditional life policies and non-life policies | 3.6% | 3.4% | 3.8% | – | – | |||||||
| Realized gains/(losses) backing traditional life policies and non-life policies | 1.2% | 1.0% | 1.5% | – | – | |||||||
| Net investment return backing traditional life and non-life policies | 4.8% | 4.4% | 5.3% | – | – | |||||||
| of which Life & Pensions | 5.0% | 4.6% | 5.5% | – | – | |||||||
| of which Non-Life | 4.0% | 3.0% | 4.8% | – | – | |||||||
| The following table presents Winterthur's investment portfolio: | ||||||||||||||||||
| 31.03.06 | 31.12.05 | |||||||||||||||||
| in CHF m | Book value | Fair value | Book value | Fair value | ||||||||||||||
| Debt securities - held-to-maturity | 10,010 | 10,187 | 10,052 | 10,523 | ||||||||||||||
| Debt securities - available-for-sale | 77,679 | 77,679 | 78,431 | 78,431 | ||||||||||||||
| Equity securities - available-for-sale | 11,198 | 11,198 | 8,885 | 8,885 | ||||||||||||||
| Debt securities - trading | 1,589 | 1,589 | 1,670 | 1,670 | ||||||||||||||
| Equity securities - trading | 19,872 | 19,872 | 17,988 | 17,988 | ||||||||||||||
| Mortgage loans | 10,192 | 10,465 | 10,027 | 10,540 | ||||||||||||||
| Other loans | 5,570 | 5,798 | 5,320 | 5,775 | ||||||||||||||
| Real estate | 8,777 | 9,095 | 8,700 | 8,940 | ||||||||||||||
| Other investments | 993 | 993 | 1,421 | 1,421 | ||||||||||||||
| Investments, general account | 145,880 | 146,876 | 142,494 | 144,173 | ||||||||||||||
| Investments, separate account | 6,417 | 6,417 | 5,920 | 5,920 | ||||||||||||||
| Total investments | 152,297 | 153,293 | 148,414 | 150,093 | ||||||||||||||
| of which Life & Pensions | 133,050 | 133,768 | 129,298 | 130,597 | ||||||||||||||
| of which Non-Life | 18,357 | 18,651 | 18,307 | 18,759 | ||||||||||||||
| of which Other Activities | 890 | 874 | 809 | 737 | ||||||||||||||
| Debt and equity securities - trading and loans - include CHF 18,705 million (December 31, 2005: CHF 17,109 million) held backing unit-linked liabilities in the general account. | ||||||||||||||||||
| The following table presents detail of held-to-maturity and available-for-sale securities of the Winterthur investment portfolio: | ||||||||||||||||||
| 31.03.06 | 31.12.05 | |||||||||||||||||
| in CHF m | Amortized cost | 1) | Gross unrealized gains | Gross unrealized losses | Fair value | Amortized cost | 2) | Gross unrealized gains | Gross unrealized losses | Fair value | ||||||||
| Debt securities – held-to-maturity | 10,010 | 214 | 37 | 10,187 | 10,052 | 477 | 6 | 10,523 | ||||||||||
| Debt securities – available-for-sale | 76,755 | 1,969 | 1,045 | 77,679 | 75,274 | 3,521 | 364 | 78,431 | ||||||||||
| Equity securities – available-for-sale | 9,596 | 1,670 | 68 | 11,198 | 7,731 | 1,200 | 46 | 8,885 | ||||||||||
| Securities – available-for-sale | 86,351 | 3,639 | 1,113 | 88,877 | 83,005 | 4,721 | 410 | 87,316 | ||||||||||
| 1) Includes an increase of CHF 308 million to amortized cost due to hedge accounting basis adjustments. | ||||||||||||||||||
| 2) Includes an increase of CHF 262 million to amortized cost due to hedge accounting basis adjustments. | ||||||||||||||||||
|
|
| The following table sets forth information on assets under management: | ||||||||
| in CHF bn | 31.03.06 | 31.12.05 | Change in % from 31.12.05 | |||||
| Investment Banking | 14.3 | 14.5 | (1.4) | |||||
| Private Banking | 882.7 | 837.6 | 5.4 | |||||
| Asset Management | 619.6 | 589.4 | 5.1 | |||||
| Winterthur | 159.8 | 153.3 | 4.2 | |||||
| Less assets managed on behalf of other segments | (122.8) | (110.5) | 11.1 | |||||
| Credit Suisse Group | 1,553.6 | 1,484.3 | 4.7 | |||||
| of which discretionary | 772.9 | 742.5 | 4.1 | |||||
| of which advisory | 780.7 | 741.8 | 5.2 | |||||
| The following table sets forth information on net new assets: | ||||||||
| in CHF bn | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Investment Banking | 0.2 | 0.0 | (0.5) | |||||
| Private Banking | 14.8 | 8.9 | 14.1 | |||||
| Asset Management | 17.0 | (0.8) | 3.9 | |||||
| Winterthur | 3.7 | (0.2) | 2.8 | |||||
| Less net new assets managed on behalf of other segments | (4.6) | (0.1) | (4.9) | |||||
| Credit Suisse Group | 31.1 | 7.8 | 15.4 | |||||
| The following table sets forth information on client assets: | ||||||||
| in CHF bn | 31.03.06 | 31.12.05 | Change in % from 31.12.05 | |||||
| Investment Banking | 73.6 | 69.6 | 5.7 | |||||
| Private Banking | 1,000.4 | 951.9 | 5.1 | |||||
| Asset Management | 626.1 | 596.0 | 5.1 | |||||
| Winterthur | 159.8 | 153.3 | 4.2 | |||||
| Less client assets managed on behalf of other segments | (122.8) | (110.5) | 11.1 | |||||
| Credit Suisse Group | 1,737.1 | 1,660.3 | 4.6 | |||||
 |
| The following table sets forth details of BIS data (risk-weighted assets, capital and ratios): | |||||||||||||
| Credit Suisse Group | Credit Suisse | ||||||||||||
| in CHF m, except where indicated | 31.03.06 | 31.12.05 | 31.03.06 | 31.12.05 | |||||||||
| Risk-weighted positions | 233,649 | 218,899 | 217,215 | 200,904 | |||||||||
| Market risk equivalents | 14,467 | 13,992 | 13,287 | 12,499 | |||||||||
| Risk-weighted assets | 248,116 | 232,891 | 230,502 | 213,403 | |||||||||
| Total shareholders' equity | 42,630 | 42,118 | 25,638 | 25,788 | |||||||||
| Reconciliation to Tier 1 capital: | |||||||||||||
| Non-cumulative perpetual preferred securities | 2,179 | 2,170 | 1,049 | 1,044 | |||||||||
| Investment in insurance entities | (4,056) | (4,179) | (12) | (12) | |||||||||
| Adjustments for goodwill, minority interests, disallowed unrealized gains on fair value measurement, own shares and dividend accruals | (13,975) | (13,761) | (4,939) | (6,257) | |||||||||
| Tier 1 capital | 26,778 | 26,348 | 21,736 | 20,563 | |||||||||
| Tier 1 ratio | 10.8% | 11.3% | 9.4% | 9.6% | |||||||||
| Total capital | 33,609 | 31,918 | 32,041 | 29,815 | |||||||||
| Total capital ratio | 13.5% | 13.7% | 13.9% | 14.0% | |||||||||
| The Swiss Federal Banking Commission (EBK) has advised that Credit Suisse Group and Credit Suisse may continue to include as Tier 1 capital CHF 2.2 billion and CHF 6.5 billion, respectively, as of March 31, 2006 (December 31, 2005: CHF 2.2 billion and CHF 6.5 billion, respectively) of equity from special purpose entities that are deconsolidated under FIN 46R. | |||||||||||||
| The following table sets forth the Group's risk profile, using ERC as the common risk measure: | ||||||||
| Change in % from | Change analysis: brief summary | |||||||
| in CHF m | 31.03.06 | 31.12.05 | 31.03.06 vs 31.12.05 | |||||
| Interest Rate ERC, Credit Spread ERC & Foreign Exchange Rate ERC | 5,316 | 13% | Higher credit spread risk in Investment Banking and Winterthur. | |||||
| Equity Investment ERC | 4,435 | 25% | Higher equity exposures in Winterthur from portfolio changes and favorable market conditions. | |||||
| Swiss & Retail Lending ERC | 2,421 | (2%) | Lower exposures in Private Banking. | |||||
| International Lending ERC & Counterparty ERC | 3,314 | 12% | Increase in Investment Banking due to syndications. | |||||
| Emerging Markets ERC | 1,945 | 1% | Higher exposures in Investment Banking partially offset by lower Winterthur exposures from reduced FX exposure and higher country ratings. | |||||
| Real Estate ERC & Structured Asset ERC 1) | 4,055 | 4% | Increase due to increased commercial real estate risk in Investment Banking. | |||||
| Insurance Underwriting ERC | 1,143 | 3% | Higher due to life insurance exposure in Investment Banking. | |||||
| Simple sum across risk categories | 22,629 | 10% | ||||||
| Diversification benefit | (7,292) | 8% | ||||||
| Total Position Risk ERC | 15,337 | 10% | ||||||
| One-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 must be considered. For a more detailed description of the Group’s ERC model, please refer to Credit Suisse Group's Annual Report 2005, which is available on the website: www.credit-suisse.com/annualreport2005. Prior period balances have been restated for methodology changes in order to maintain consistency over time. | ||||||||
| 1) This category comprises the commercial and residential real estate and asset-backed securities exposure of the Investment Banking segment, real estate acquired at auction, real estate for own use in Switzerland and Winterthur's real estate investments. | ||||||||
| The following table sets forth the trading-related market risk exposure for Credit Suisse Group and Investment Banking, as measured by scaled one-day, 99% VaR: | |||||||||||||||||||||||||||||||||||||
| 1Q2006 | 4Q2005 | 1Q2005 | |||||||||||||||||||||||||||||||||||
| in CHF m | Minimum | Maximum | Average | 31.03.06 | Minimum | Maximum | Average | 31.12.05 | Minimum | Maximum | Average | 31.03.05 | |||||||||||||||||||||||||
| Credit Suisse Group 1) | |||||||||||||||||||||||||||||||||||||
| Interest rate & credit spread | 43.0 | 81.7 | 62.2 | 71.9 | 35.9 | 73.5 | 56.8 | 68.6 | 43.3 | 77.9 | 63.5 | 58.9 | |||||||||||||||||||||||||
| Foreign exchange rate | 11.3 | 25.9 | 16.2 | 15.9 | 6.1 | 19.4 | 11.3 | 11.3 | 10.5 | 30.0 | 20.3 | 12.2 | |||||||||||||||||||||||||
| Equity | 45.9 | 64.4 | 53.3 | 59.7 | 40.0 | 62.6 | 49.1 | 56.7 | 23.4 | 47.8 | 33.2 | 37.5 | |||||||||||||||||||||||||
| Commodity | 6.9 | 20.0 | 10.6 | 7.1 | 4.9 | 15.3 | 9.7 | 10.6 | 0.8 | 3.1 | 1.5 | 2.5 | |||||||||||||||||||||||||
| Diversification benefit | – | 2) | – | 2) | (68.9) | (62.4) | – | 2) | – | 2) | (57.6) | (59.7) | – | 2) | – | 2) | (51.8) | (42.1) | |||||||||||||||||||
| Total | 58.7 | 93.5 | 73.4 | 92.2 | 50.9 | 87.6 | 69.3 | 87.5 | 57.7 | 77.1 | 66.7 | 69.0 | |||||||||||||||||||||||||
| Investment Banking | |||||||||||||||||||||||||||||||||||||
| Interest rate & credit spread | 42.6 | 77.3 | 59.7 | 71.7 | 48.9 | 73.3 | 59.9 | 68.4 | 43.4 | 77.8 | 63.5 | 58.8 | |||||||||||||||||||||||||
| Foreign exchange rate | 11.3 | 26.2 | 16.3 | 16.8 | 6.2 | 19.7 | 11.4 | 11.4 | 10.4 | 29.7 | 20.1 | 12.3 | |||||||||||||||||||||||||
| Equity | 45.8 | 64.1 | 53.2 | 59.6 | 39.9 | 62.6 | 49.0 | 56.7 | 23.4 | 47.8 | 33.2 | 37.4 | |||||||||||||||||||||||||
| Commodity | 6.9 | 20.1 | 10.6 | 7.1 | 3.8 | 14.5 | 9.4 | 10.6 | 0.4 | 3.1 | 1.1 | 2.2 | |||||||||||||||||||||||||
| Diversification benefit | – | 2) | – | 2) | (68.2) | (63.2) | – | 2) | – | 2) | (58.3) | (59.7) | – | 2) | – | 2) | (51.1) | (41.2) | |||||||||||||||||||
| Total | 55.6 | 92.8 | 71.6 | 92.0 | 57.3 | 87.8 | 71.4 | 87.4 | 57.1 | 77.2 | 66.8 | 69.5 | |||||||||||||||||||||||||
| Represents 10-day VaR scaled to a one-day holding period. | |||||||||||||||||||||||||||||||||||||
| 1) The VaR estimates for Credit Suisse Group are performed on a monthly basis and the VaR statistics for Credit Suisse Group therefore refer to monthly numbers. | |||||||||||||||||||||||||||||||||||||
| 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 for the Group and its primary lending segments: | ||||||||||||||
| Investment Banking | Private Banking | Credit Suisse Group | ||||||||||||
| in CHF m | 31.03.06 | 31.12.05 | 31.03.06 | 31.12.05 | 31.03.06 | 31.12.05 | ||||||||
| Consumer loans: | ||||||||||||||
| Mortgages | 0 | 0 | 76,348 | 75,122 | 82,203 | 80,779 | ||||||||
| Loans collateralized by securities | 0 | 0 | 17,094 | 17,203 | 17,097 | 17,207 | ||||||||
| Other | 969 | 816 | 3,182 | 2,960 | 4,151 | 3,787 | ||||||||
| Consumer loans | 969 | 816 | 96,624 | 95,285 | 103,451 | 101,773 | ||||||||
| Corporate loans: | ||||||||||||||
| Real estate | 434 | 508 | 24,896 | 24,728 | 26,610 | 26,597 | ||||||||
| Commercial & industrial loans | 19,592 | 16,204 | 40,504 | 37,747 | 61,888 | 55,295 | ||||||||
| Loans to financial institutions | 18,344 | 16,979 | 543 | 615 | 21,189 | 19,794 | ||||||||
| Governments and public institutions | 826 | 784 | 1,375 | 1,380 | 4,368 | 4,389 | ||||||||
| Corporate loans | 39,196 | 34,475 | 67,318 | 64,470 | 114,055 | 106,075 | ||||||||
| Loans, gross | 40,165 | 35,291 | 163,942 | 159,755 | 217,506 | 207,848 | ||||||||
| (Unearned income)/deferred expenses, net | (69) | (64) | 104 | 118 | 44 | 64 | ||||||||
| Allowance for loan losses | (442) | (465) | (1,561) | (1,726) | (2,054) | (2,241) | ||||||||
| Total loans, net | 39,654 | 34,762 | 162,485 | 158,147 | 215,496 | 205,671 | ||||||||
| 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 for the Group and its primary lending segments: | ||||||||||||||
| Investment Banking | Private Banking | Credit Suisse Group | ||||||||||||
| in CHF m | 31.03.06 | 31.12.05 | 31.03.06 | 31.12.05 | 31.03.06 | 31.12.05 | ||||||||
| Non-performing loans | 279 | 143 | 1,007 | 1,157 | 1,296 | 1,323 | ||||||||
| Non-interest earning loans | 10 | 11 | 735 | 830 | 748 | 845 | ||||||||
| Total non-performing loans | 289 | 154 | 1,742 | 1,987 | 2,044 | 2,168 | ||||||||
| Restructured loans | 15 | 55 | 2 | 21 | 18 | 77 | ||||||||
| Potential problem loans | 277 | 303 | 689 | 726 | 1,004 | 1,074 | ||||||||
| Total other impaired loans | 292 | 358 | 691 | 747 | 1,022 | 1,151 | ||||||||
| Total impaired loans, gross | 581 | 512 | 2,433 | 2,734 | 3,066 | 3,319 | ||||||||
| Valuation allowances as % of | ||||||||||||||
| Total non-performing loans | 152.9% | 301.9% | 89.6% | 86.9% | 100.5% | 103.4% | ||||||||
| Total impaired loans | 76.1% | 90.8% | 64.2% | 63.1% | 67.0% | 67.5% | ||||||||
| The following table sets forth the movements in the allowance for loan losses for the Group and its primary lending segments: | ||||||||||||||||||||
| Investment Banking | Private Banking | Credit Suisse Group | ||||||||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | 1Q2006 | 4Q2005 | 1Q2005 | 1Q2006 | 4Q2005 | 1Q2005 | |||||||||||
| Balance beginning of period | 465 | 418 | 536 | 1,726 | 1,976 | 2,435 | 2,241 | 2,445 | 3,038 | |||||||||||
| New provisions | 53 | 116 | 19 | 93 | 73 | 65 | 155 | 205 | 85 | |||||||||||
| Releases of provisions | (100) | (111) | (41) | (98) | (93) | (81) | (204) | (214) | (125) | |||||||||||
| Net additions charged to income statement | (47) | 5 | (22) | (5) | (20) | (16) | (49) | (9) | (40) | |||||||||||
| Gross write-offs | (15) | (58) | (30) | (170) | (239) | (193) | (189) | (307) | (223) | |||||||||||
| Recoveries | 34 | 81 | 14 | 8 | 6 | 9 | 42 | 86 | 23 | |||||||||||
| Net write-offs | 19 | 23 | (16) | (162) | (233) | (184) | (147) | (221) | (200) | |||||||||||
| Allowances acquired/(deconsolidated) and provisions for interest | 9 | 13 | 19 | 2 | 0 | (2) | 11 | 9 | 17 | |||||||||||
| Foreign currency translation impact and other adjustments, net | (4) | 6 | 32 | 0 | 3 | 6 | (2) | 17 | 36 | |||||||||||
| Balance end of period | 442 | 465 | 549 | 1,561 | 1,726 | 2,239 | 2,054 | 2,241 | 2,851 | |||||||||||
| Provision for credit losses disclosed in the Credit Suisse Group unaudited condensed consolidated statements of income also includes provisions for lending-related exposure of CHF -11 million, CHF -18 million and CHF 4 million for 1Q2006, 4Q2005 and 1Q2005, respectively. | ||||||||||||||||||||
 |
 |
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | Change in % from 4Q2005 | Change in % from 1Q2005 | |||||||
| Interest and dividend income | 12,555 | 11,560 | 8,808 | 9 | 43 | |||||||
| Interest expense | (9,685) | (9,132) | (5,760) | 6 | 68 | |||||||
| Net interest income | 2,870 | 2,428 | 3,048 | 18 | (6) | |||||||
| Commissions and fees | 4,271 | 4,096 | 3,237 | 4 | 32 | |||||||
| Trading revenues | 4,311 | 1,814 | 1,828 | 138 | 136 | |||||||
| Realized gains/(losses) from investment securities, net | 358 | 261 | 421 | 37 | (15) | |||||||
| Insurance net premiums earned | 8,204 | 4,478 | 7,596 | 83 | 8 | |||||||
| Other revenues | 1,765 | 1,061 | 767 | 66 | 130 | |||||||
| Total noninterest revenues | 18,909 | 11,710 | 13,849 | 61 | 37 | |||||||
| Net revenues | 21,779 | 14,138 | 16,897 | 54 | 29 | |||||||
| Policyholder benefits, claims and dividends | 9,372 | 4,786 | 7,984 | 96 | 17 | |||||||
| Provision for credit losses | (60) | (27) | (36) | 122 | 67 | |||||||
| Total benefits, claims and credit losses | 9,312 | 4,759 | 7,948 | 96 | 17 | |||||||
| Insurance underwriting, acquisition and administration expenses | 998 | 979 | 1,029 | 2 | (3) | |||||||
| Banking compensation and benefits | 4,472 | 3,982 | 3,296 | 12 | 36 | |||||||
| Other expenses | 2,211 | 2,729 | 1,791 | (19) | 23 | |||||||
| Restructuring charges | 5 | 3 | 0 | 67 | – | |||||||
| Total operating expenses | 7,686 | 7,693 | 6,116 | 0 | 26 | |||||||
| Income from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes | 4,781 | 1,686 | 2,833 | 184 | 69 | |||||||
| Income tax expense | 860 | 85 | 627 | – | 37 | |||||||
| Minority interests | 1,316 | 511 | 301 | 158 | 337 | |||||||
| Income from continuing operations before extraordinary items and cumulative effect of accounting changes | 2,605 | 1,090 | 1,905 | 139 | 37 | |||||||
| Income/(loss) from discontinued operations, net of tax | 23 | 13 | (9) | 77 | – | |||||||
| Extraordinary items, net of tax | (24) | 0 | 0 | – | – | |||||||
| Cumulative effect of accounting changes, net of tax | 0 | 0 | 14 | – | – | |||||||
| Net income | 2,604 | 1,103 | 1,910 | 136 | 36 | |||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Basic earnings per share, in CHF | ||||||||
| Income from continuing operations before cumulative effect of accounting changes | 2.31 | 0.97 | 1.64 | |||||
| Income/(loss) from discontinued operations, net of tax | 0.02 | 0.01 | (0.01) | |||||
| Extraordinary items, net of tax | (0.02) | 0.00 | 0.00 | |||||
| Cumulative effect of accounting changes, net of tax | 0.00 | 0.00 | 0.01 | |||||
| Net income available for common shares | 2.31 | 0.98 | 1.64 | |||||
| Diluted earnings per share, in CHF | ||||||||
| Income from continuing operations before cumulative effect of accounting changes | 2.21 | 0.94 | 1.63 | |||||
| Income/(loss) from discontinued operations, net of tax | 0.02 | 0.01 | (0.01) | |||||
| Extraordinary items, net of tax | (0.02) | 0.00 | 0.00 | |||||
| Cumulative effect of accounting changes, net of tax | 0.00 | 0.00 | 0.01 | |||||
| Net income available for common shares | 2.21 | 0.95 | 1.63 | |||||
|
Consolidated balance sheets (unaudited) |
| in CHF m | 31.03.06 | 31.12.05 | Change in % from 31.12.05 | |||||
| Assets | ||||||||
| Cash and due from banks | 34,789 | 27,577 | 26 | |||||
| Interest-bearing deposits with banks | 6,722 | 6,143 | 9 | |||||
| Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions | 344,475 | 352,281 | (2) | |||||
| Securities received as collateral | 30,377 | 23,950 | 27 | |||||
| Trading assets (of which CHF 153,512 m and CHF 151,793 m encumbered) | 460,847 | 435,250 | 6 | |||||
| Investment securities (of which CHF 2,371 m and CHF 2,456 m encumbered) | 120,931 | 121,565 | (1) | |||||
| Other investments | 28,474 | 20,736 | 37 | |||||
| Loans, net of allowance for loan losses of CHF 2,054 m and CHF 2,241 m | 215,496 | 205,671 | 5 | |||||
| Premises and equipment | 7,430 | 7,427 | 0 | |||||
| Goodwill | 12,830 | 12,932 | (1) | |||||
| Other intangible assets | 3,419 | 3,091 | 11 | |||||
| Assets held for separate accounts | 13,544 | 11,875 | 14 | |||||
| Other assets (of which CHF 29,418 m and CHF 4,860 m encumbered) | 154,287 | 110,554 | 40 | |||||
| Total assets | 1,433,621 | 1,339,052 | 7 | |||||
| Liabilities and shareholders' equity | ||||||||
| Deposits | 383,361 | 364,238 | 5 | |||||
| Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions | 302,780 | 309,803 | (2) | |||||
| Obligation to return securities received as collateral | 30,377 | 23,950 | 27 | |||||
| Trading liabilities | 219,523 | 194,225 | 13 | |||||
| Short-term borrowings (of which CHF 2,078 m reported at fair value as of March 31, 2006) | 20,981 | 19,472 | 8 | |||||
| Provisions from the insurance business | 155,713 | 148,414 | 5 | |||||
| Long-term debt (of which CHF 40,461 m reported at fair value as of March 31, 2006) | 141,509 | 132,975 | 6 | |||||
| Liabilities held for separate accounts | 13,544 | 11,875 | 14 | |||||
| Other liabilities | 107,133 | 84,135 | 27 | |||||
| Minority interests | 16,070 | 7,847 | 105 | |||||
| Total liabilities | 1,390,991 | 1,296,934 | 7 | |||||
| Common shares | 624 | 624 | 0 | |||||
| Additional paid-in capital | 24,716 | 24,639 | 0 | |||||
| Retained earnings | 27,248 | 24,584 | 11 | |||||
| Treasury shares, at cost | (7,349) | (5,823) | 26 | |||||
| Accumulated other comprehensive income/(loss) | (2,609) | (1,906) | 37 | |||||
| Total shareholders' equity | 42,630 | 42,118 | 1 | |||||
| Total liabilities and shareholders' equity | 1,433,621 | 1,339,052 | 7 | |||||
|
Consolidated statements of changes in shareholders’ equity (unaudited) |
| 3 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 com- prehensive income/(loss) | Total | ||||||||||||||||||||||
| Balance January 1, 2005 | 1,110,819,481 | 607 | 23,435 | 20,501 | (4,547) | (3,723) | 36,273 | ||||||||||||||||||||||
| Net income | 1,910 | 1,910 | |||||||||||||||||||||||||||
| Other comprehensive income, net of tax | 508 | 508 | |||||||||||||||||||||||||||
| Issuance of common shares | 171,374 | 4 | 4 | ||||||||||||||||||||||||||
| Issuance of treasury shares | 70,434,306 | (9) | 3,524 | 3,515 | |||||||||||||||||||||||||
| Repurchase of treasury shares | (81,276,612) | (4,066) | (4,066) | ||||||||||||||||||||||||||
| Share-based compensation | 15,600,901 | (558) | 938 | 380 | |||||||||||||||||||||||||
| Balance March 31, 2005 | 1,115,749,450 | 607 | 22,872 | 22,411 | (4,151) | (3,215) | 38,524 | ||||||||||||||||||||||
| Balance January 1, 2006 | 1,125,360,183 | 1) | 624 | 24,639 | 24,584 | (5,823) | (1,906) | 42,118 | |||||||||||||||||||||
| Net income | 2,604 | 2,604 | |||||||||||||||||||||||||||
| Cumulative effect of accounting changes, net of tax | 60 | 60 | |||||||||||||||||||||||||||
| Other comprehensive income, net of tax | (703) | (703) | |||||||||||||||||||||||||||
| Issuance of treasury shares | 63,044,115 | (121) | 4,607 | 4,486 | |||||||||||||||||||||||||
| Repurchase of treasury shares | (88,338,500) | 2) | (6,395) | (6,395) | |||||||||||||||||||||||||
| Share-based compensation | 5,876,635 | 198 | 262 | 460 | |||||||||||||||||||||||||
| Balance March 31, 2006 | 1,105,942,433 | 3) | 624 | 24,716 | 27,248 | (7,349) | (2,609) | 42,630 | |||||||||||||||||||||
| 1) At par value CHF 0.50 each, fully paid, net of 122,391,983 treasury shares. In addition to the treasury shares, a maximum of 217,698,047 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders. | |||||||||||||||||||||||||||||
| 2) Includes 7,947,800 shares repurchased in connection with Credit Suisse Group's share buyback program. | |||||||||||||||||||||||||||||
| 3) At par value CHF 0.50 each, fully paid, net of 141,809,733 treasury shares. In addition to the treasury shares, a maximum of 200,171,663 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders. | |||||||||||||||||||||||||||||
|
Comprehensive income (unaudited) |
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Net income | 2,604 | 1,103 | 1,910 | |||||
| Other comprehensive income/(loss) | (703) | 75 | 508 | |||||
| Comprehensive income | 1,901 | 1,178 | 2,418 | |||||
|
Consolidated statements of cash flows (unaudited) |
| 3 months | ||||||
| in CHF m | 2006 | 2005 | ||||
| Operating activities of continuing operations | ||||||
| Net income | 2,604 | 1,910 | ||||
| (Income)/loss from discontinued operations, net of tax | (23) | 9 | ||||
| Income from continuing operations | 2,581 | 1,919 | ||||
| Adjustments to reconcile net income to net cash provided by/(used in) operating activities of continuing operations | ||||||
| Impairment, depreciation and amortization | 305 | 330 | ||||
| Provision for credit losses | (60) | (36) | ||||
| Deferred tax provision | 230 | 170 | ||||
| Restructuring charges | 5 | 0 | ||||
| Change in technical provisions from the insurance business | 7,390 | 6,316 | ||||
| (Gain)/loss from investment securities | (358) | (421) | ||||
| Share of net income from equity method investments | (44) | (125) | ||||
| Cumulative effect of accounting changes, net of tax | 0 | (14) | ||||
| Receivables from the insurance business | (208) | (1,630) | ||||
| Payables from the insurance business | (2,591) | (1,111) | ||||
| Trading assets and liabilities | 2,294 | 14,619 | ||||
| Deferred policy acquisition costs | (299) | (261) | ||||
| (Increase)/decrease in accrued interest, fees receivable and other assets | (27,514) | (19,956) | ||||
| Increase/(decrease) in accrued expenses and other liabilities | 6,177 | (3,473) | ||||
| Other, net | (972) | (483) | ||||
| Total adjustments | (15,645) | (6,075) | ||||
| Net cash provided by/(used in) operating activities of continuing operations | (13,064) | (4,156) | ||||
| Investing activities of continuing operations | ||||||
| (Increase)/decrease in interest-bearing deposits with banks | (689) | 175 | ||||
| (Increase)/decrease in central bank funds sold, securities purchased under resale agreements and securities borrowing transactions | 5,901 | 488 | ||||
| Purchase of investment securities | (15,042) | (17,456) | ||||
| Proceeds from sale of investment securities | 11,586 | 11,045 | ||||
| Maturities of investment securities | 3,066 | 5,645 | ||||
| Investments in subsidiaries and other investments | (31) | (261) | ||||
| Proceeds from sale of other investments | 756 | 241 | ||||
| (Increase)/decrease in loans | (10,910) | (8,051) | ||||
| Proceeds from sales of loans | 1,134 | 602 | ||||
| Capital expenditures for premises and equipment and other intangible assets | (545) | (175) | ||||
| Proceeds from sale of premises and equipment and other intangible assets | 1 | 265 | ||||
| Other, net | (19) | 431 | ||||
| Net cash provided by/(used in) investing activities of continuing operations | (4,792) | (7,051) | ||||
|
Consolidated statements of cash flows – continued (unaudited) |
| 3 months | ||||||
| in CHF m | 2006 | 2005 | ||||
| Financing activities of continuing operations | ||||||
| Increase/(decrease) in deposits | 19,591 | 13,224 | ||||
| Increase/(decrease) in short-term borrowings | 1,396 | (2,269) | ||||
| Increase/(decrease) in central bank funds purchased, securities sold under repurchase agreements and securities lending transactions | (5,599) | (685) | ||||
| Issuances of long-term debt | 27,976 | 9,749 | ||||
| Repayments of long-term debt | (17,487) | (7,525) | ||||
| Issuances of common shares | 0 | 4 | ||||
| Issuances of treasury shares | 4,486 | 3,515 | ||||
| Repurchase of treasury shares | (6,395) | (4,066) | ||||
| Dividends paid/capital repayments (including minority interests and trust preferred securities) | (16) | (15) | ||||
| Other, net | 772 | 28 | ||||
| Net cash provided by/(used in) financing activities of continuing operations | 24,724 | 11,960 | ||||
| Effect of exchange rate changes on cash and due from banks | (6) | 2,778 | ||||
| Discontinued operations | ||||||
| Net cash provided by/(used in) operating activities of discontinued operations | 0 | 1 | ||||
| Net cash provided by/(used in) investing activities of discontinued operations | 0 | 1 | ||||
| Net cash provided by/(used in) financing activities of discontinued operations | 0 | 2 | ||||
| Proceeds from sale of stock by subsidiaries | 350 | 0 | ||||
| Net increase/(decrease) in cash and due from banks | 7,212 | 3,535 | ||||
| Cash and due from banks at beginning of period | 27,577 | 25,648 | ||||
| Cash and due from banks at end of period | 34,789 | 29,183 | ||||
| Supplemental disclosures of cash flow information (unaudited) | ||||||
| 3 months | ||||||
| in CHF m | 2006 | 2005 | ||||
| Cash paid during the year for income taxes | 646 | 557 | ||||
| Cash paid during the year for interest | 9,498 | 5,500 | ||||
| Assets acquired and liabilities assumed in business acquisitions | ||||||
| Fair value of assets acquired | 0 | 7 | ||||
| Assets and liabilities sold in business divestitures | ||||||
| Assets sold | 864 | 0 | ||||
| Liabilities sold | 514 | 0 | ||||
| Net revenues | ||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Investment Banking | 5,757 | 3,735 | 3,994 | |||||
| Private Banking | 3,110 | 2,716 | 2,539 | |||||
| Asset Management | 756 | 757 | 614 | |||||
| Winterthur | 10,915 | 6,381 | 9,485 | |||||
| Corporate Center 1) | 1,241 | 549 | 265 | |||||
| Credit Suisse Group | 21,779 | 14,138 | 16,897 | |||||
| 1) Includes minority interest revenues of CHF 1,284 million, CHF 554 million and CHF 275 million in 1Q2006, 4Q2005 and 1Q2005, respectively, from the consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest in such revenues. | ||||||||
| Income from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes | ||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Investment Banking | 1,564 | 286 | 932 | |||||
| Private Banking | 1,308 | 1,026 | 974 | |||||
| Asset Management | 234 | 241 | 208 | |||||
| Winterthur | 505 | 482 | 418 | |||||
| Corporate Center 1) | 1,170 | (349) | 301 | |||||
| Credit Suisse Group | 4,781 | 1,686 | 2,833 | |||||
| 1) Includes minority interest income of CHF 1,275 million, CHF 539 million and CHF 272 million in 1Q2006, 4Q2005 and 1Q2005, respectively, from the consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest in such income. | ||||||||
| Total assets | ||||||
| in CHF m | 31.03.06 | 31.12.05 | ||||
| Investment Banking | 1,035,601 | 957,513 | ||||
| Private Banking | 313,463 | 298,117 | ||||
| Asset Management | 21,319 | 21,572 | ||||
| Winterthur | 182,955 | 178,722 | ||||
| Corporate Center | (119,717) | (116,872) | ||||
| Credit Suisse Group | 1,433,621 | 1,339,052 | ||||
|
Interest and dividend income and interest expense |
| The following table sets forth the details of interest and dividend income and interest expense: | ||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Interest income on loans | 1,889 | 1,836 | 1,568 | |||||
| Interest income on investment securities | 1,001 | 1,002 | 921 | |||||
| Dividend income from investment securities | 72 | 52 | 44 | |||||
| Interest and dividend income on trading assets | 4,150 | 3,713 | 3,261 | |||||
| Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions | 4,345 | 3,955 | 2,448 | |||||
| Other | 1,098 | 1,002 | 566 | |||||
| Total interest and dividend income | 12,555 | 11,560 | 8,808 | |||||
| Interest expense on deposits | (2,643) | (2,414) | (1,375) | |||||
| Interest expense on short-term borrowings | (120) | (104) | (115) | |||||
| Interest expense on trading liabilities | (1,424) | (1,268) | (1,143) | |||||
| Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions | (4,065) | (3,811) | (2,119) | |||||
| Interest expense on long-term debt | (1,104) | (1,194) | (841) | |||||
| Other | (329) | (341) | (167) | |||||
| Total interest expense | (9,685) | (9,132) | (5,760) | |||||
| Net interest income | 2,870 | 2,428 | 3,048 | |||||
|
Trading activities |
| The following table sets forth the details of trading-related revenues: | ||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Interest rate products | 1,036 | 578 | 884 | |||||
| Equity/index-related products | 2,459 | 848 | 632 | |||||
| Foreign exchange products | 618 | 347 | 362 | |||||
| Other | 198 | 41 | (50) | |||||
| Trading revenues | 4,311 | 1,814 | 1,828 | |||||
| Interest and dividend income on trading assets | 4,150 | 3,713 | 3,261 | |||||
| Interest expense on trading liabilities | (1,424) | (1,268) | (1,143) | |||||
| Trading interest income, net | 2,726 | 2,445 | 2,118 | |||||
| Total trading-related revenues | 7,037 | 4,259 | 3,946 | |||||
| The following table sets forth the details of trading assets and liabilities: | ||||||
| in CHF m | 31.03.06 | 31.12.05 | ||||
| Trading assets | ||||||
| Debt securities | 210,046 | 198,815 | ||||
| Equity securities 1) | 171,358 | 156,559 | ||||
| Derivative instruments | 54,628 | 55,192 | ||||
| Other | 24,815 | 24,684 | ||||
| Total trading assets | 460,847 | 435,250 | ||||
| Trading liabilities | ||||||
| Short positions | 157,891 | 137,618 | ||||
| Derivative instruments | 61,632 | 56,607 | ||||
| Total trading liabilities | 219,523 | 194,225 | ||||
| 1) Includes convertible bonds. | ||||||
|
Commissions and fees |
| The following table sets forth the details of commissions and fees: | ||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Commissions from lending business | 329 | 284 | 187 | |||||
| Investment and portfolio management fees | 1,261 | 1,212 | 1,124 | |||||
| Commissions for other securities business | 60 | 24 | 43 | |||||
| Commissions and fees from fiduciary activities | 1,321 | 1,236 | 1,167 | |||||
| Underwriting fees | 601 | 781 | 517 | |||||
| Brokerage fees | 1,432 | 1,004 | 904 | |||||
| Commissions, brokerage securities underwriting and other securities activities | 2,033 | 1,785 | 1,421 | |||||
| Fees for other customer services | 588 | 791 | 462 | |||||
| Commissions and fees | 4,271 | 4,096 | 3,237 | |||||
|
Loans |
| The following table sets forth details of the domestic (Switzerland) and foreign loan portfolio: | ||||||
| in CHF m | 31.03.06 | 31.12.05 | ||||
| Banks | 1,926 | 1,801 | ||||
| Commercial | 45,889 | 43,972 | ||||
| Consumer | 83,338 | 81,388 | ||||
| Public authorities | 3,610 | 3,481 | ||||
| Lease financings | 2,995 | 2,979 | ||||
| Switzerland | 137,758 | 133,621 | ||||
| Banks | 8,187 | 8,555 | ||||
| Commercial | 51,996 | 46,110 | ||||
| Consumer | 18,433 | 18,398 | ||||
| Public authorities | 997 | 1,026 | ||||
| Lease financings | 135 | 138 | ||||
| Foreign | 79,748 | 74,227 | ||||
| Loans, gross | 217,506 | 207,848 | ||||
| Deferred expenses, net | 44 | 64 | ||||
| Allowance for loan losses | (2,054) | (2,241) | ||||
| Total loans, net | 215,496 | 205,671 | ||||
|
As of March 31, 2006, the Group held CHF 21.1 billion in restricted loans, which represented collateral on secured borrowings. These loans are reported in
Other assets
and the related obligations are recorded in
Other liabilities
.
|
| The following table sets forth the movements in the allowance for loan losses: | ||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Balance beginning of period | 2,241 | 2,445 | 3,038 | |||||
| New provisions | 155 | 205 | 85 | |||||
| Releases of provisions | (204) | (214) | (125) | |||||
| Net additions charged to income statement | (49) | (9) | (40) | |||||
| Gross write-offs | (189) | (307) | (223) | |||||
| Recoveries | 42 | 86 | 23 | |||||
| Net write-offs | (147) | (221) | (200) | |||||
| Provisions for interest | 11 | 9 | 17 | |||||
| Foreign currency translation impact and other adjustments, net | (2) | 17 | 36 | |||||
| Balance end of period | 2,054 | 2,241 | 2,851 | |||||
| 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 | 31.03.06 | 31.12.05 | ||||||||
| With a specific allowance | 2,493 | 2,803 | ||||||||
| Without a specific allowance | 573 | 516 | ||||||||
| Total impaired loans, gross | 3,066 | 3,319 | ||||||||
| Specific allowance for impaired loans 1) | 1,669 | 1,847 | ||||||||
| 1) Included in the allowances for loan losses. | ||||||||||
|
Life settlement contracts |
| The following table sets forth the expected realization dates for life settlement contracts held by the Group as of March 31, 2006: | ||||||||||||||||
| within 1 year | within 1-2 years | within 2-3 years | within 3-4 years | within 4-5 years | Thereafter | Total | ||||||||||
| Contracts accounted for under the fair value method | ||||||||||||||||
| Number of contracts | 309 | 177 | 218 | 163 | 151 | 2,855 | 3,873 | |||||||||
| Carrying value, in CHF m | 15 | 8 | 12 | 8 | 10 | 245 | 298 | |||||||||
| Face value, in CHF m | 15 | 9 | 14 | 9 | 17 | 951 | 1,015 | |||||||||
| Contracts accounted for under the investment method | ||||||||||||||||
| Number of contracts | – | – | – | – | 1 | 129 | 130 | |||||||||
| Carrying value, in CHF m | – | – | – | – | 1 | 157 | 158 | |||||||||
| Face value, in CHF m | – | – | – | – | 6 | 1,232 | 1,238 | |||||||||
| The following table sets forth the life insurance premiums anticipated to be paid for those contracts accounted for under the investment method by the Group as of March 31, 2006, for each of the next five years: | ||||||||||||
| in CHF m | within 1 year | within 1-2 years | within 2-3 years | within 3-4 years | within 4-5 years | |||||||
| Anticipated life insurance premium payments | 12 | 63 | 63 | 63 | 63 | |||||||
| The following table sets forth the movements of restructuring liabilities: | ||||||||||||||
| 2006 | 2005 | |||||||||||||
| in CHF m | Personnel | Other | Total | Personnel | Other | Total | ||||||||
| Balance January 1 | 14 | 6 | 20 | 27 | 22 | 49 | ||||||||
| Net additions charged to income statement | 0 | 5 | 5 | 0 | 0 | 0 | ||||||||
| Write-offs/recoveries, net 1) | (5) | (5) | (10) | (11) | (7) | (18) | ||||||||
| Transfers, foreign exchange | 0 | 0 | 0 | 0 | 1 | 1 | ||||||||
| Balance March 31 | 9 | 6 | 15 | 16 | 16 | 32 | ||||||||
| 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, 2005 | 27 | (3,998) | 1,068 | (820) | (3,723) | ||||||||||||||||
| Increase/(decrease) | (7) | 640 | 22 | 0 | 655 | ||||||||||||||||
| Reclassification adjustments, included in net profit | (9) | 0 | (138) | 0 | (147) | ||||||||||||||||
| Balance March 31, 2005 | 11 | (3,358) | 952 | (820) | (3,215) | ||||||||||||||||
| Balance January 1, 2006 | 77 | (2,497) | 1,156 | (642) | (1,906) | ||||||||||||||||
| Increase/(decrease) | (109) | (15) | (529) | 0 | (653) | ||||||||||||||||
| Reclassification adjustments, included in net profit | 0 | (28) | (22) | 0 | (50) | ||||||||||||||||
| Balance March 31, 2006 | (32) | (2,540) | 605 | (642) | (2,609) | ||||||||||||||||
| 1) Presented net of shadow adjustments. | |||||||||||||||||||||
|
Earnings per share |
| The following table sets forth details of the calculation of earnings per share: | ||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | |||||
| Income from continuing operations before cumulative effect of accounting changes | 2,605 | 1,090 | 1,905 | |||||
| Income/(loss) from discontinued operations, net of tax | 23 | 13 | (9) | |||||
| Extraordinary items, net of tax | (24) | 0 | 0 | |||||
| Cumulative effect of accounting changes, net of tax | 0 | 0 | 14 | |||||
| Net income – as reported | 2,604 | 1,103 | 1,910 | |||||
| Net income available for common shares for basic EPS 1) | 2,604 | 1,073 | 1,864 | |||||
| Net income available for common shares for diluted EPS 2) | 2,604 | 1,120 | 1,948 | |||||
| Weighted-average common shares outstanding for basic EPS, in m | 1,128.0 | 1,090.2 | 1,134.9 | |||||
| Effect of dilutive securities | ||||||||
| Convertible securities | 0.0 | 30.7 | 40.4 | |||||
| Share options and warrants | 17.7 | 13.5 | 8.2 | |||||
| Share awards | 33.5 | 48.5 | 14.4 | |||||
| Adjusted weighted-average common shares for diluted EPS 3) | 1,179.2 | 1,182.9 | 1,197.9 | |||||
| Basic earnings per share, in CHF | ||||||||
| Income from continuing operations before cumulative effect of accounting changes | 2.31 | 0.97 | 1.64 | |||||
| Income/(loss) from discontinued operations, net of tax | 0.02 | 0.01 | (0.01) | |||||
| Extraordinary items, net of tax | (0.02) | 0.00 | 0.00 | |||||
| Cumulative effect of accounting changes, net of tax | 0.00 | 0.00 | 0.01 | |||||
| Net income available for common shares | 2.31 | 0.98 | 1.64 | |||||
| Diluted earnings per share, in CHF | ||||||||
| Income from continuing operations before cumulative effect of accounting changes | 2.21 | 0.94 | 1.63 | |||||
| Income/(loss) from discontinued operations, net of tax | 0.02 | 0.01 | (0.01) | |||||
| Extraordinary items, net of tax | (0.02) | 0.00 | 0.00 | |||||
| Cumulative effect of accounting changes, net of tax | 0.00 | 0.00 | 0.01 | |||||
| Net income available for common shares | 2.21 | 0.95 | 1.63 | |||||
| 1) 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 basic earnings per share calculation. | ||||||||
| 2) Under the if-converted method for calculating diluted earnings per share, 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 32.5 million, 51.3 million and 53.5 million for 1Q2006, 4Q2005 and 1Q2005, 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: | ||||||||||||||
| in CHF m | 1Q2006 | 4Q2005 | 1Q2005 | |||||||||||
| Service costs on benefit obligation | 107 | 104 | 100 | |||||||||||
| Interest costs on benefit obligation | 173 | 184 | 184 | |||||||||||
| Expected return on plan assets | (227) | (223) | (224) | |||||||||||
| Amortization of | ||||||||||||||
| Prior service cost | 9 | 9 | 10 | |||||||||||
| Unrecognized (gains)/losses | 36 | 17 | 13 | |||||||||||
| Net periodic pension costs | 98 | 91 | 83 | |||||||||||
| Curtailment (gains)/losses | (8) | 1 | (1) | |||||||||||
| Termination losses | 2 | 3 | 6 | |||||||||||
| Total pension costs | 92 | 95 | 88 | |||||||||||
| The following tables set forth details of contingent liabilities associated with guarantees: | ||||||||||
| As of March 31, 2006, in CHF m | Total gross amount | Total net amount | 1) | Carrying value | Collateral received | |||||
| Credit guarantees and similar instruments | 9,701 | 7,994 | 13 | 3,919 | ||||||
| Performance guarantees and similar instruments | 10,652 | 9,724 | 211 | 3,658 | ||||||
| Securities lending indemnifications | 37,720 | 37,720 | 0 | 37,720 | ||||||
| Derivatives | 492,295 | 492,295 | 3,090 | 1,590 | ||||||
| Other guarantees 2) | 3,999 | 3,999 | 23 | 1,518 | ||||||
| Total guarantees | 554,367 | 551,732 | 3,337 | 48,405 | ||||||
| As of December 31, 2005, in CHF m | Total gross amount | Total net amount | 1) | Carrying value | Collateral received | |||||
| Credit guarantees and similar instruments | 9,976 | 7,616 | 11 | 3,484 | ||||||
| Performance guarantees and similar instruments | 8,275 | 7,425 | 233 | 3,737 | ||||||
| Securities lending indemnifications | 35,456 | 35,456 | 0 | 35,456 | ||||||
| Derivatives | 437,399 | 437,399 | 4,238 | 1,612 | ||||||
| Other guarantees 2) | 3,552 | 3,552 | 25 | 1,691 | ||||||
| Total guarantees | 494,658 | 491,448 | 4,507 | 45,980 | ||||||
| 1) Total net amount equals gross amount less any participations. | ||||||||||
| 2) Contingent considerations in business combinations, residual value guarantees and other indemnifications. | ||||||||||
| The following table sets forth details of other commitments: | ||||||||
| As of March 31, 2006, in CHF m | Total gross amount | Total net amount | 1) | Collateral received | ||||
| Irrevocable commitments under documentary credits | 4,911 | 4,623 | 2,405 | |||||
| Loan commitments | 205,465 | 205,155 | 132,126 | |||||
| Forward reverse repurchase agreements | 21,929 | 21,929 | 21,929 | |||||
| Other | 5,533 | 5,533 | 576 | |||||
| Total other commitments | 237,838 | 237,240 | 157,036 | |||||
| As of December 31, 2005, in CHF m | Total gross amount | Total net amount | 1) | Collateral received | ||||
| Irrevocable commitments under documentary credits | 5,345 | 5,042 | 2,761 | |||||
| Loan commitments | 199,825 | 199,555 | 126,385 | |||||
| Forward reverse repurchase agreements | 15,472 | 15,472 | 15,472 | |||||
| Other | 4,360 | 4,360 | 582 | |||||
| Total other commitments | 225,002 | 224,429 | 145,200 | |||||
| 1) Total net amount equals gross amount less any participations. | ||||||||
| The following table sets forth the total assets by category related to non-consolidated VIEs: | ||||||||||
| Carrying value of VIEs' total assets | ||||||||||
| in CHF m | 31.03.06 | 31.12.05 | ||||||||
| Collateralized debt obligations | 20,549 | 20,515 | ||||||||
| Commercial paper conduits | 8,606 | 8,528 | ||||||||
| Financial intermediation | 98,806 | 78,909 | ||||||||
| Total | 127,961 | 107,952 | ||||||||
| The following table sets forth 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 | 31.03.06 | 31.12.05 | ||||||||
| Collateralized debt obligations | 3,911 | 3,365 | ||||||||
| Commercial paper conduits | 1 | 1 | ||||||||
| Financial intermediation | 15,864 | 14,032 | ||||||||
| Total assets consolidated pursuant to FIN 46R | 19,776 | 17,398 | ||||||||
|
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) One ADS represents one registered share. | ||||||||
|
Credit Suisse Group’s ordinary shares are registered shares with a par value of CHF 0.50 per share and are listed on the Swiss Exchange/virt-x. In addition, Credit Suisse Group has a sponsored level II American Depositary Shares (ADS) program listed on the New York Stock Exchange for which Deutsche Bank Trust Company Americas acts as depositary. Each ADS represents one registered share of the Group.
Further information about historic share prices and other share-related statistics can be found within the Credit Suisse Group financial highlights section of this document and at www.credit-suisse.com/investors. |
| Ratings | ||||||||||
| Moody's | Standard & Poor's | Fitch Ratings | ||||||||
| Credit Suisse Group | Short term | – | A-1 | F1+ | ||||||
| Long term | Aa3 | A | AA- | |||||||
| Outlook | Stable | Positive | Stable | |||||||
| Credit Suisse | Short term | P-1 | A-1 | F1+ | ||||||
| Long term | Aa3 | A+ | AA- | |||||||
| Outlook | Stable | Positive | Stable | |||||||
| Winterthur | Insurer financial strength | A1 | A- | A+ | ||||||
| Outlook | Negative | Stable | Stable | |||||||
|
Foreign currency translation rates |
| The following table sets forth principal Swiss franc foreign exchange rates: | ||||||||||||
| Average rate | Closing rate | |||||||||||
| in CHF | 1Q2006 | 4Q2005 | 1Q2005 | 31.03.06 | 31.12.05 | |||||||
| 1 USD | 1.30 | 1.30 | 1.17 | 1.3069 | 1.3137 | |||||||
| 1 EUR | 1.56 | 1.55 | 1.55 | 1.5815 | 1.5572 | |||||||
| 1 GBP | 2.28 | 2.28 | 2.23 | 2.2668 | 2.2692 | |||||||
| 100 JPY | 1.11 | 1.12 | 1.12 | 1.1076 | 1.1190 | |||||||
 |
 |
|
Credit Suisse Group
Paradeplatz 8 8070 Zurich Switzerland Tel. +41 44 212 16 16 Fax +41 44 333 25 87 www.credit-suisse.com |
|
5520124 English
|
Credit Suisse Group
Quarterly Results 2006/Q1
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, 2005 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.
Credit Suisse Group financial highlights
In CHF m, except where indicated
Return on equity - Group 24.4% 11.2% 20.6%
Return on equity - Banking 27.4%1 10.8% 22.9%
Return on equity - Insurance 15.0%1 11.4% 12.0%
Cost/income ratio - Banking 68.4% 78.9% 70.9%
Net new assets in CHF bn 31.1 7.8 15.4
1Q 06 1Q06 4Q05 1Q05
1) Excluding
minority interest income relating to consolidated entities in which the
Group does not have a
significant
economic interest in such income of CHF 1,275 m, CHF 272 m, CHF
539 m in 1Q06, 1Q05 and 4Q05, respectively
1Q06
Change
in % from
4Q05
Change
in % from
1Q05
Pre-tax income 1) 3,506 206% 37%
Net income 3,506 2,604 136% 36%
Basic earnings per share in CHF 2.311 136% 41%
Positive earning trends in all segments
Pre-tax income
1,564
932
1,308
974
234
208
505
418
CHF m
68%
34%
13%
21%
Investment Banking benefited from a high level of client
activity in a favorable market environment
Net revenues and pre-tax income at
record level, reflecting strong
performance in all key business areas
Continued progress in delivering a
focused franchise
Reduced compensation/revenue ratio in
line with commitment to reduce cost
ratios over time
Pre-tax income margin of 27.2% and
return on average ERC of 42.0%
Named “Best Investment Bank in
Latin America” by Latin Finance
Highlights first quarter 2006
Fixed income trading delivered record revenues
Fixed income trading revenues
CHF m
Comments on 1Q06
1Q05
2Q05
3Q05
4Q05
1Q06
2,116
1,353
1,969
1,566
2,767
Generally favorable markets, with
narrowing credit spreads and a
substantially higher new issue
activity
Strong results in leveraged finance,
Latin America and global foreign
exchange positioning
Offset in part by lower results in
other emerging markets, ABS and
CMBS
77%
31%
Equity trading reflected higher revenues across all
major business areas amid strong markets
Equity trading revenues
CHF m
Comments on 1Q06
1Q05
2Q05
3Q05
4Q05
1Q06
1,066
912
1,341
1,021
2,077
Customer flow businesses in cash
and convertibles performed well
across all regions
Derivatives benefited from
increased deal flow and good
trading results
Prime services continued to perform
well with increased revenues
Solidified its top tier position in
prime brokerage according to the
Global Custodian Prime
Brokerage survey
103%
95%
Advisory taking steps to improve market share and
revenues
Advisory and other fees
CHF m
Comments on 1Q06
1Q05
2Q05
3Q05
4Q05
1Q06
Improved revenues vs. 1Q05 but
revenues down vs. 4Q05 due to
lower industry-wide transactions
and lower market share
Strengthening business with critical
hires in key industries and regions
225
369
433
333
448
(26)%
48%
Significant increases in underwriting fees
Underwriting revenues in CHF m
Comments on 1Q06
1Q05
2Q05
3Q05
4Q05
1Q06
271
411
408
456
68%
394
139
186
263
249
79%
343
Debt underwriting
Equity underwriting
16%
Debt underwriting up due to strength in
leveraged finance, ABS and investment
grade capital markets
Strong leveraged finance franchise with
continued shift to syndicated loan market
Market share position #3 in high-yield as
market recovered from recent lows
Equity underwriting up vs. 1Q05 due to
higher industry-wide activity and
improved market share
Equity underwriting down vs. 4Q05 due
to lower global industry-wide issuances
Market share position #3 in global IPOs
(27)%
Reduced compensation/revenue ratio in line with
commitment to reduce costs ratios over time
Operating expenses
CHF m
1Q05
2Q05
3Q05
4Q05
1Q06
3,081
3,502
3,462
4,248
2005 1Q06
Compensation/revenue ratio in % 55.5 53.5
Cost/income ratio in % 90.2 / 84.0 1) 73.8
Pre-tax income margin in % 10.3 / 16.5 1) 27.2
Compensation increased with
higher revenues
Compensation/revenue ratio
two percentage points below
the full-year 2005 level
3,976
1) Excludes CHF 960 m charge in 2Q05 to increase
the reserve for certain private litigation matters
Compensation and benefits
Up 23% vs. 1Q05 reflecting
higher professional fees and
branding implementation costs
Down 12% vs. 4Q05 due to
lower professional fees and
expense provisions
Other expenses
Private Banking capitalized on strong client activity and
market momentum
Strong top-line growth driven
by commission revenues
Wealth Management registered higher
assets under management, net new
assets, brokerage and product issuing
volumes
Corporate & Retail Banking continued to
achieve strong pre-tax income
Highlights first quarter 2006
Private Banking with excellent results reflecting
significant growth in commissions and fees
Pre-tax income
CHF m
1Q05
2Q05
3Q05
4Q05
1Q06
974
929
1,037
1,026
1,308
Pre-tax income margin in %
38.4 36.8 38.2 37.8 42.1
1Q06 performance a result of strong
client activity in a favorable market
environment
Announced the merger of its
independent private banks* to create
a single independently-managed bank
named
Clariden Leu
Annual synergy target of around
CHF 100 m from 2008
Merger effective from January 2007
34%
27%
Comments
* Clariden Bank, BGP Banca di Gestione Patrimoniale,
Bank Hofmann, Bank Leu and Credit Suisse Fides
Wealth Management showed strong top-line growth
Revenues and gross margin
1Q05
2Q05
3Q05
4Q05
1Q06
2.2
Net revenues
in CHF bn
(left-hand scale)
Gross margin on
assets under
management in bp
(right-hand scale)
1.9
1.9
1.7
1.7
19%
31%
CHF bn
bp
2005 1Q06
Transaction-based margin 40 bp 52 bp
Asset-based margin 73 bp 73 bp
Wealth Management registered strong net new asset
inflows
Net new assets and growth
1Q05
2Q05
3Q05
4Q05
1Q06
Net new assets in CHF bn (left-hand scale)
Net new asset growth in % 1) (right-hand scale)
693.3
14.5
25.9
733.7
Assets under management
31.12.2005
Net new
assets
Market and
FX related
movements
31.03.2006
14.5
5.8%
CHF bn
%1)
6.8
11.1
8.1
16.8
1) Rolling 4 quarter average
CHF bn
Wealth Management expands pre-tax margin
CHF m
Operating expenses
Higher performance-related
compensation accruals in line
with strong quarterly results
Compensation and benefits
Investments in new
Credit Suisse brand
Higher commission expenses
Other expenses
1Q05
2Q05
3Q05
4Q05
1Q06
1,059
1,139
1,163
1,264
1,078
Pre-tax income margin in %
37.7 35.2 38.7 37.6 43.2
Overall expenses
Investments in international
expansion
Corporate & Retail Banking achieves continued strong
pre-tax income
Pre-tax income
CHF m
1Q05
2Q05
3Q05
4Q05
1Q06
331
336
316
322
345
Pre-tax income margin in %
39.6 40.2 37.1 38.0 39.1
Pre-tax return on average ERC in %
41.8 42.6 40.0 42.4 48.4
Strong revenue development of
6% while operating expenses
only increased by 4% compared
to first quarter 2005
Continued releases of provisions
for credit losses but at a lower
level
4%
7%
Comments on 1Q06
Asset Management shows good results while focusing
on further strengthening its business model
Growing commission and fee income
and strong private equity gains
Operating expenses increased due to
commission expenses, business
realignment and branding
implementation costs
Several initiatives launched to turn
around unprofitable businesses and
reduce overall cost base
Growth strategy in Asia continues
through Joint Venture with Woori
Asset Management in South Korea
Highlights first quarter 2006
Revenues have improved substantially and are well
above the 2005 quarterly average
1Q05
2Q05
3Q05
4Q05
1Q06
614
782
648
757
756
85
266
139
208
206
529
516
509
549
550
Sustained high contribution
from private equity gains
2005 levels considered to be
at the high-end of PE cycle
Private Equity (PE) gains
Net revenues before PE gains
Adversely impacted by
charges in relation to fair
value adjustment on interest
rate derivatives
CHF m
Revenues
2005 1Q06
Gross margin on
assets under management in bp 54.5 49.8
Gross margin affected by
inclusion of more than
CHF 40 bn in low margin
money market funds in 4Q05
Asset Management operating expenses increased due
to higher commissions and development costs
CHF m
Operating expenses
Increase vs. 1Q05 in line
with revenue growth
Slight increase vs. 4Q05
which showed comparable
revenues
Compensation and benefits
Up CHF 78 m vs. 1Q05 due to
commission expenses
development costs for the
realignment of the business
marketing costs
Other expenses
1Q05
2Q05
3Q05
4Q05
1Q06
406
448
516
520
425
Pre-tax income margin in %
33.9 45.7 30.9 31.8 31.0
Good net new asset inflows, benefited from reinvestment
of outflows recorded in the fourth quarter
Net new assets and growth
1Q05
2Q05
3Q05
4Q05
1Q06
Net new assets in CHF bn (left-hand scale)
Net new asset growth 1) in % (right-hand scale)
589.4
17.0
13.2
619.6 2)
Assets under management
CHF bn
5.1%
CHF bn
%1)
1) Rolling 4 quarter average
3.9
11.4
5.1
(0.8)
17.0
31.12.2005
Net new
assets
Market and
FX related
movements
31.03.2006
2) Including assets managed on behalf of other banking segments
Winterthur showed strong operating performance and