UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2, 2007
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 of Form 20-F or Form 40-F.
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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.
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Yes |
No |
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-.
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CREDIT SUISSE GROUP | |
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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
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Media Release
Credit Suisse Group reports net income of CHF 3.2 billion
for the second quarter of 2007
Current share buyback program of CHF 8 billion expected to be completed during 2008, ahead of plan.
In the second quarter of 2007, diluted earnings per share improved to CHF 2.82 from CHF 1.86 in the same period a year earlier, and the return on equity was 29.7% compared to 21.6%.
For the first half of 2007, net income was CHF 5.9 billion. Diluted earnings per share improved to CHF 5.24 from CHF 4.07 in the same period a year earlier, and the return on equity was 27.4% compared to 23.1%.
Net new assets in the second quarter of 2007 were CHF 13.3 billion in Wealth Management and CHF 20.4 billion in Asset Management.
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Financial Highlights |
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(in CHF million, except where indicated) |
2Q07 |
1Q07 |
2Q06 |
% change |
% change |
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|
vs 1Q07 |
vs 2Q06 |
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Income from continuing operations |
3,189 |
2,729 |
1,872 |
17 |
70 |
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Net income |
3,189 |
2,729 |
2,158 |
17 |
48 |
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Diluted earnings per share |
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|
|
|
|
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from continuing operations (CHF) |
2.82 |
2.42 |
1.61 |
17 |
75 |
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Diluted earnings per share (CHF) |
2.82 |
2.42 |
1.86 |
17 |
52 |
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Return on equity |
29.7% |
25.2% |
21.6% |
- |
- |
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BIS tier 1 ratio (end of period) |
13.0% |
13.2% |
10.6% |
- |
- |
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Core results ¹ |
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Net revenues |
11,703 |
10,669 |
8,047 |
10 |
45 |
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Provision for credit losses |
(20) |
53 |
10 |
- |
- |
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Total operating expenses |
7,637 |
7,040 |
5,587 |
8 |
37 |
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Income from continuing operations |
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before taxes |
4,086 |
3,576 |
2,450 |
14 |
67 |
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¹ Core results include the results of the three segments and the Corporate Center, excluding revenues and expenses in respect of minority interests without significant economic interest. | |||||
Zurich, August 2, 2007 Credit Suisse Group today announced net income of CHF 3,189 million for the second quarter of 2007. Income from continuing operations increased 70% from the same period a year earlier. Diluted earnings per share were CHF 2.82, up from CHF 1.86 in the same period a year earlier.
Commenting on the quarter, Brady W. Dougan, Chief Executive Officer of Credit Suisse Group, said:
“The record operating results for the second quarter continue to build on the strong earnings momentum we have established over the past year. Revenues rose from both the previous quarter and a year earlier
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Media Release |
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August 2, 2007 Page 2/5 |
and benefited from our client-focused business model. Our focus on efficiency led to improved operating leverage, even as we continue to invest in the growth of our business.”
He added: “I am particularly pleased with our performance given the fact that we had more challenging conditions in some markets, which we expect to continue. However, I am very optimistic about the long-term growth prospects for Credit Suisse, and I believe that our client-focused, integrated business model and disciplined risk-taking will enable us to deliver superior value to shareholders through market cycles.”
Segment Results
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(in CHF million) |
2Q07 |
1Q07 |
2Q06 |
% change |
% change | |
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vs 1Q07 |
vs 2Q06 |
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Investment |
Net revenues |
7,538 |
6'582 |
4'436 |
15 |
70 |
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Banking |
Provision for credit losses |
9 |
61 |
16 |
(85) |
(44) |
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Total operating expenses |
5,027 |
4'531 |
3'133 |
11 |
60 |
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Income from continuing |
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operations before taxes |
2,502 |
1,990 |
1,287 |
26 |
94 |
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Private |
Net revenues |
3,353 |
3,366 |
2,913 |
0 |
15 |
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Banking |
Provision for credit losses |
(29) |
(7) |
(5) |
- |
- |
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Total operating expenses |
2,001 |
1,934 |
1,795 |
3 |
11 |
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Income from continuing |
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operations before taxes |
1,381 |
1,439 |
1'123 |
(4) |
23 |
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Asset |
Net revenues |
853 |
776 |
675 |
10 |
26 |
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Management |
Provision for credit losses |
0 |
0 |
(1) |
- |
100 |
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Total operating expenses |
554 |
519 |
649 |
7 |
(15) |
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Income from continuing operations before taxes |
299 |
257 |
27 |
16 |
- |
Investment Banking
The Investment Banking segment reported record income from continuing operations before taxes of CHF 2,502 million for the second quarter of 2007, up 94% compared to the second quarter of 2006. Net revenues increased 70% to record levels, with substantial increases in all major business areas. Provisions for credit losses decreased compared to the second quarter of 2006. Total operating expenses increased 60%. Excluding the impact in the second quarter of 2006 of credits from insurance settlements for litigation and related costs, total operating expenses rose 39% in the second quarter of 2007 compared to the same period in 2006, due primarily to higher compensation expenses, reflecting higher revenues, and higher other operating expenses. Investment Banking continued to reduce its non-compensation costs. General and administrative expenses were down 14% in the second quarter of 2007 compared to the second quarter of 2006, excluding the impact of the credits from insurance settlements. This decline reflected a lower fixed cost run-rate despite increased business activity. The compensation/revenue ratio was 51.5% in the second quarter of 2007 compared to 53.5% in the second quarter of 2006. The pre-tax income margin rose to 33.2% in the quarter from 29.0% in the second quarter of 2006.
Private Banking
The Private Banking segment, which is comprised of the Wealth Management and Corporate & Retail Banking businesses, reported income from continuing operations before taxes of CHF 1,381 million for the second quarter of 2007, up 23% compared to the second quarter of 2006.
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Media Release |
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August 2, 2007 Page 3/5 |
The Wealth Management business reported record income from continuing operations before taxes of CHF 1,001 million for the second quarter of 2007, up 28% compared to the second quarter of 2006. Net revenues rose 17%, driven by strong improvements in recurring revenues, mainly due to higher asset-based commissions and fees, particularly from managed assets, as well as an increase in transaction-based revenues. The 10% increase in total operating expenses during the quarter was primarily attributable to higher compensation and benefits related to the ongoing strategic investment in the global franchise and higher performance-related compensation in line with improved results. The pre-tax income margin was 42.0% in the second quarter of 2007, compared to 38.3% in the second quarter of 2006.
The Corporate & Retail Banking business reported a 10% rise in income from continuing operations before taxes to CHF 380 million for the second quarter of 2007 compared to the second quarter of 2006. Net revenues rose 10%. The 14% increase in total operating expenses compared to the second quarter of 2006 reflected an increase in compensation and benefits as well as higher other operating expenses. Provisions for credit losses reflected net releases of CHF 28 million, mainly due to the resolution of a single exposure. The pre-tax income margin was 39.2% in the second quarter of 2007, compared to 39.1% in the second quarter of 2006.
Asset Management
The Asset Management segment reported income from continuing operations before taxes of CHF 299 million for the second quarter of 2007, an increase of CHF 272 million compared to the second quarter of 2006. Net revenues increased 26% compared to the second quarter of 2006, driven by asset management and administrative revenues as well as by increased private equity and other investment-related gains. Total operating expenses were down 15% from the second quarter of 2006. The second quarter of 2006 included costs of CHF 152 million associated with the realignment of the Asset Management business, particularly in the US. The pre-tax income margin was 35.1% in the second quarter of 2007. As of June 30, 2007, assets under management totaled CHF 749.6 billion, an increase of 5.8% from March 31, 2007.
Net New Assets
The Wealth Management business generated net new assets of CHF 13.3 billion in the second quarter of 2007, representing an annualized quarterly growth rate of 6.5%. This was driven by particularly strong inflows from Europe and the Americas. The Asset Management business reported strong net new assets of CHF 20.4 billion in the second quarter of 2007, mainly reflecting inflows from money market assets, alternative investments and balanced assets. Credit Suisse’s total assets under management were CHF 1,629.0 billion as of June 30, 2007, an increase of 5.0% from March 31, 2007.
First-half 2007 results
Credit Suisse Group posted net income of CHF 5,918 million in the first half of 2007. Income from continuing operations increased 40% from the same period a year earlier. Diluted earnings per share improved to CHF 5.24 in the first half of 2007 from CHF 4.07 in the same period of 2006, and the return on equity amounted to 27.4% in the first half of 2007, up from 23.1% in the first half of 2006.
Acceleration of current share buyback program
As part of its current share buyback program of up to CHF 8 billion, which was launched on May 9, 2007, Credit Suisse Group bought back CHF 2.5 billion by the end of July. It plans to repurchase a further CHF
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Media Release |
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August 2, 2007 Page 4/5 |
2.5 billion by the end of 2007 and expects to complete the program during 2008, well ahead of the 2010 target.
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
Credit Suisse Group
As one of the world’s leading banks, Credit Suisse provides its clients with investment banking, private banking and asset management services worldwide. Credit Suisse offers advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as retail clients in Switzerland. Credit Suisse is active in over 50 countries and employs approximately 45,000 people. Credit Suisse’s parent company, Credit Suisse Group, is a leading global financial services company headquartered in Zurich. Credit Suisse Group’s registered shares (CSGN) are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.
Cautionary Statement Regarding Forward-Looking and Non-GAAP Information
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 the following:
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Our plans, objectives or goals; |
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Our future economic performance or prospects; |
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The potential effect on our future performance of certain contingencies; and |
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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 securities 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:
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The ability to maintain sufficient liquidity and access capital markets; |
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Market and interest rate fluctuations; |
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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;
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The ability of counterparties to meet their obligations to us; |
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The effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; |
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Political and social developments, including war, civil unrest or terrorist activity; |
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The possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; |
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Operational factors such as systems failure, human error, or the failure to implement procedures properly; |
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Actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; |
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The effects of changes in laws, regulations or accounting policies or practices; |
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Competition in geographic and business areas in which we conduct our operations; |
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The ability to retain and recruit qualified personnel; |
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The ability to maintain our reputation and promote our brand; |
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The ability to increase market share and control expenses; |
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Technological changes; |
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The timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; |
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Acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets; |
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The adverse resolution of litigation and other contingencies; and |
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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 information set forth in our Form 20-F Item 3 - Key Information - Risk factors.
This press release contains non-GAAP financial information. Information needed to reconcile such non-GAAP financial information to the most directly comparable measures under GAAP can be found in Credit Suisse Group’s Financial Review 2Q07 and Credit Suisse Group’s Financial Statements 2Q07.
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Media Release |
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August 2, 2007 Page 5/5 |
Presentation of Credit Suisse Group’s Second-Quarter 2007 Results
Analyst and Media Conference
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Thursday, August 2, 2007 |
10:00 CEST / 09:00 BST / 04:00 EST
Credit Suisse Auditorium Uetlihof, Zurich
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Simultaneous interpreting: German – English, English – German |
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Speakers |
Brady W. Dougan, Chief Executive Officer of Credit Suisse Group
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Renato Fassbind, Chief Financial Officer of Credit Suisse Group |
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Internet |
Live broadcast at: www.credit-suisse.com/results
Video playback available approximately 3 hours after the event
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Telephone |
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Live audio dial-in on +41 91 610 5600 (Europe), +44 207 107 0611 (UK) and |
+1 866 291 4166 (US); ask for “Credit Suisse Group quarterly results”.
Please dial in 10-15 minutes before the start of the presentation
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Telephone replay available approximately 1 hour after the event on +41 91 612 4330 (Europe), |
+44 207 108 6233 (UK) and +1 866 416 2558 (US); conference ID English – 375#, conference
ID German – 369#
Second Quarter
Results 2007
Zurich
August 2, 2007
Brady W. Dougan, CEO
Renato Fassbind, CFO
Cautionary statement
Cautionary statement regarding forward-looking and non-GAAP 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, 2006 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.
This presentation contains non-GAAP financial information. Information needed to
reconcile such non-GAAP financial information to the most directly comparable measures
under GAAP can be found
in Credit Suisse Group's second quarter report 2007.
Second Quarter Results 2007
Slide 2
Building on strong momentum
vs. 1Q07
vs. 2Q06
2Q07
Change in %
CHF m, except where indicated
1) for Core Results, i.e. excluding results from minority interests without significant economic interest
1Q07
2Q06
2Q07
in
Second Quarter Results 2007
Slide 3
1)
1)
1)
1)
Net revenues
11,703
45%
10%
Total operating expenses
7,637
37%
8%
Income from continuing operations before taxes
4,086
67%
14%
Net income
3,189
48%
17%
Diluted earnings per share in CHF
2.82
52%
17%
Cost/income ratio
65.3%
69.4%
66.0%
Return on equity
29.7%
21.6%
25.2%
Net new assets in CHF bn
27.6
30.2
43.0
Strong first half performace
Change in %
vs. 6M06
6M07
CHF m, except where indicated
1) for Core Results, i.e. excluding results from minority interests without significant economic interest
6M06
6M07
in
Second Quarter Results 2007
Slide 4
1)
1)
1)
1)
Net revenues
22,372
26%
Total operating expenses
14,677
20%
Income from continuing operations before taxes
7,662
39%
Net income
5,918
24%
Diluted earnings per share in CHF
5.24
29%
Cost/income ratio
65.6%
69.1%
Return on equity
27.4%
23.1%
Net new assets in CHF bn
70.6
57.4
4,492
2,820
556
Investment Banking
Private Banking
Asset Management
6M06
6M07
Record half-year results with solid pre-tax income margin levels
Pre-tax income
CHF m
+16%
+35%
Pre-tax income margin in %
23.3 31.8 40.4 42.0 28.9 34.1
1) Excluding credits received from insurance settlements for litigation costs of CHF 474 m
2) Excluding business realignment costs of CHF 152 m
2)
1)
2)
Second Quarter Results 2007
Slide 5
+89%
77
60
71
71
68
59
66
66
76
71
66
Improved efficiency in the first half of 2007
Cost/income ratio
%, based on Core Results
6M07
2005
1) Excluding charge to increase the reserve for private litigation of CHF 960 m and charge of CHF 630 m for change in accounting for share-based compensation
2) 6M06 excluding credits received from insurance settlements for litigations costs of CHF 474 m
3) 6M06 excluding business realignment costs of CHF 152 m
IB
PB
AM
Core Results
6M06
6M07
6M06
1)
2) 3)
2)
3)
Second Quarter Results 2007
Slide 6
Continued asset gathering momentum
Wealth Management
Asset Management
Assets under management in CHF bn
Net new asset growth on AuM
in 2Q06 (annualized) 6.5%
rolling four quarters 6.7%
Assets under management in CHF bn
1Q07
2Q07
Other
effects
Net new
assets
814.8
860.5
32.4
13.3
1Q07
2Q07
Other
effects
Net new
assets
708.6
749.6
20.6
20.4
Net new asset growth on AuM
in 2Q06 (annualized) 11.5%
rolling four quarters 11.0%
Second Quarter Results 2007
Slide 7
71
74
71
69
75
72
41
42
32
39
43
41
70
42
Gross margin development
Wealth Management gross margin
Asset Management gross margin
2Q
3Q
4Q
1Q
2Q
118
109
101
113
116
6M07
2006
2006
2007
6M07
2006
Recurring revenues
Transaction-based
Basis points
Basis points
112
113
2Q
3Q
4Q
1Q
2Q
2006
2007
45
44
45
44
46
45
47
Before private equity and
other investment-related gains
Private equity and other
investment-related gains
Second Quarter Results 2007
Slide 8
37
37
37
38
37
36
8
9
7
7
5
8
39
11
233
254
271
296
13.0
13.2
13.9
11.3
Capital management
Risk-weighted assets in CHF bn
BIS Tier 1 ratio in %
Repurchased 27.4 m shares worth
CHF 2.5 bn by July 31 1)
31% of current CHF 8 bn program
plans for further repurchases of
CHF 2.5 bn by year-end 2007
expect early completion of current
program in 2008
Risk-weighted assets increase due to
business growth and an increase in
market risk equivalents
Issued USD 2 bn of hybrid capital
2006
1Q07
2Q07
2005
Comments
Tier 1 capital in CHF bn
26.3 35.1 35.8 38.6
1) 14.7 m shares worth CHF 1.3 bn by quarter-end 2Q07
+17%
+9%
Second Quarter Results 2007
Slide 9
Investment Banking with record results
Record revenues and pre-tax
income
Strong results amid higher market
volatility in certain areas and a
more challenging fixed income
trading environment
Continued progress in cost
management despite increase in
business activity
Highlights second quarter 2007
Second Quarter Results 2007
Slide 10
Improved profitability in Investment Banking
Strong pre-tax income growth
benefiting from diversified business mix
Noticeable improvement in pre-tax
income margin, but opportunities
remain
Continued focus on disciplined risk
management
Investment Banking pre-tax income
Comments on 2Q07
CHF m
2Q06
1Q07
2Q07
6M06
6M07
+208%
+26%
1,287
1,990
2,502
2,851
4,492
1)
Pre-tax income margin in %
28.0 31.8 29.0 30.2 33.2
1) Excluding CHF 474 m of credits received from
insurance settlements for litigation and related costs
+89%
1)
Second Quarter Results 2007
Slide 11
Record fixed income trading revenues in a more
challenging environment
Fixed income trading revenues
Comments on 2Q07
Despite challenges, the market
offered good opportunities across
various businesses
Higher revenues in:
leveraged finance
structured products (incl. CMBS)
emerging markets
currency trading
Lower revenues in RMBS, with lower
volumes and valuations
Proprietary trading improved from a
weak 2Q06
CHF m
2Q06
1Q07
2Q07
6M06
6M07
+69%
+18%
1,939
2,772
3,282
+29%
4,706
6,054
Second Quarter Results 2007
Slide 12
Record equity trading revenues amid favorable markets
Equity trading revenues
Comments on 2Q07
Increased trading volumes and higher
volatility
Cash business with increased deal
activity and client flows
Proprietary trading generated strong
results across strategies and regions
Derivatives performed well
Prime services revenues increased
with growth in balances and new
client mandates
CHF m
2Q06
1Q07
2Q07
6M06
6M07
+116%
+14%
1,146
2,171
2,475
+44%
3,223
4,646
Second Quarter Results 2007
Slide 13
Underwriting and advisory continue upward trend
Underwriting and advisory fees
Comments on 2Q07
Debt underwriting with strong
performance in leveraged finance,
reflecting active markets and the
strength of our franchise
Equity underwriting revenues
increased reflecting higher levels of
industry-wide equity issuance and
higher market share
Advisory fees improved reflecting
higher M&A activity and higher market
shares over the past several quarters
CHF m
Debt underwriting
Equity underwriting
Advisory and other fees
2Q06
1Q07
2Q07
6M06
6M07
+56%
1,331
1,547
1,758
2,369
3,305
+32%
+16%
+29%
+35%
+55%
+40%
+32%
Second Quarter Results 2007
Slide 14
859
934
875
881
803
827
55.5
53.5
53.5
42.2
51.5
51.5
Continued progress on cost management initiatives
2Q06
3Q06
4Q06
1Q07
2Q07
2005
Compensation/revenue ratio in %
G&A expenses in CHF m
Compensation and benefits expense
maintained at 51.5% ratio
Reflects disciplined approach to
compensation accrual
Continued reduction in G&A expenses
despite significant increase in volumes
and activity
Comments on 2Q07
2Q06
3Q06
4Q06
1Q07
2Q07
2005
1)
1) Quarterly average and excluding charge to increase the reserve for certain private litigation of CHF 960 m
2) Excluding credits received from insurance settlements for litigations and related costs of CHF 474 m and CHF 34 m in 2Q06 and 4Q06, respectively
2)
2)
(14)%
Second Quarter Results 2007
Slide 15
Private Banking with continued profitable growth
Overall favorable operating
environment
Assets under management
exceeded CHF 1 trillion
for the first time
New offices in the US, Kazakhstan
and Ukraine
Strengthening teams in key markets
Highlights second quarter 2007
Second Quarter Results 2007
Slide 16
Wealth Management pre-tax income a record CHF 1 bn
Profitable growth while making
investments to expand global franchise
Investment product sales were higher
compared to 2Q06 and at the same
high level achieved in 1Q07
Quarter and half-year pre-tax income
margins exceeded 40% mid-term
target
Wealth Management pre-tax income
Comments on 2Q07
CHF m
2Q06
1Q07
2Q07
6M06
6M07
+28%
+1%
779
988
1,001
+14%
1,742
1,989
Pre-tax income margin in %
40.9 41.8 38.3 41.5 42.0
Second Quarter Results 2007
Slide 17
12%
10%
Revenue
growth
Expense
growth
Increased operating leverage in Wealth Management
Growth 6M07 vs. 6M06
Expanding international growth platform
Added 100 RMs in 6M07 1)
Higher front- and back-office infra-
structure, sales & marketing costs
Continuously drive productivity
Enhancing the client value proposition
by leveraging the integrated bank
14% increase in pre-tax income
1) 60 in 1Q07 and 40 in 2Q07
Second Quarter Results 2007
Slide 18
Transaction-based
Recurring
Wealth Management growing recurring revenues
Net revenues
Recurring revenues increased 19%
higher asset-based commissions
and fees, particularly from managed
assets
higher interest income, mainly from
lower funding costs
Transaction-based revenue increased
15% reflecting higher brokerage and
product issuing fees
Comments on 2Q07 vs. 2Q06
2Q06
1Q07
2Q07
6M06
6M07
+19%
2,034
2,379
2,384
+17%
4,261
4,763
Recurring revenues as % of net revenues
60.7 63.7 62.9 63.8 63.6
CHF m
+3%
+15%
Second Quarter Results 2007
Slide 19
Corporate & Retail Banking with good results, benefiting
from a positive operating environment
Sound economic fundamentals and
growth
Interest income benefited mainly from
higher liability volumes and margins,
partially offset by asset margin
pressures
Positive impact from net credit
provision releases of CHF 28 m
Net asset outflow of CHF 4.4 bn
resulting from one client in the
institutional pension business
Comments on 2Q07 vs. 2Q06
1) Including a non-credit provision release of CHF 37 m
Pre-tax income
CHF m
2Q06
1Q07
2Q07
6M06
6M07
+10%
(16)%
344
451
380
+21%
689
831
Pre-tax income margin in %
39.1 42.5 39.1 45.7 39.2
1)
1)
Second Quarter Results 2007
Slide 20
Asset Management continues positive momentum
Continued profitability improvement
and strong net new asset growth
Steady growth in commission and
fee-based revenues
Launched Nikko Credit Suisse
Infrastructure Fund, reaching assets
of CHF 1 bn in just three weeks
Continue to see momentum in
attracting new talent
Highlights second quarter 2007
Second Quarter Results 2007
Slide 21
Restoring profitability in Asset Management
Continue to see benefit from measures
taken in 2006 realignment
Volumes and revenues developed
favorably
Compensation levels in line with
better results; contained other
expenses
Reflects combination of growth in asset
base and stable gross margins
Asset Management pre-tax income
Comments
CHF m
2Q06
1Q07
2Q07
6M06
6M07
27
257
299
556
1791)
1)
Pre-tax income margin in %
18.2 34.1 4.0 33.1 35.1
1) Excluding CHF 152 m in business realignment costs
+16%
261
4131)
+67%
+35%
Second Quarter Results 2007
Slide 22
560
603
646
648
664
Increased recurring revenues and
strong private equity gains
2Q06
3Q06
4Q06
1Q07
2Q07
Asset management
revenues 1)
Private equity and
other investment-
related gains
Asset Management net revenues
CHF m
+19%
+2%
1) Fixed income and money market, equity, balanced and alternative investments and other
115
89
92
128
189
Second Quarter Results 2007
Slide 23
75
76
71
66
3
5
10
7
15
28
27
16
238
5
46
84
Progress against Group key performance indicators
Diluted EPS growth in %
(from continued operations as reported in period)
Return on equity in %
(based on after-tax reported net income)
2004
2005
2006
6M07
2004
2005
2006
6M07
2004
2005
2006
6M07
2004
2005
2006
6M07
Net new asset growth in %
(annualized on assets under management)
Cost / income ratio in % 1)
(based on Core Results)
1) Results for 2005 exclude charge to increase the reserve for certain private litigation of CHF 960 m and charge of CHF 630 m in relation to the change in
accounting for share-based compensation.
2006 results exclude credits received from insurance settlements for litigation and related costs of CHF 508 m.
Second Quarter Results 2007
Slide 24
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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CREDIT SUISSE GROUP |
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(Registrant) |
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By: |
/s/ Urs Rohner |
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(Signature)* |
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General Counsel |
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Date: August 2, 2007 |
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/s/ Charles Naylor |
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*Print the name and title under the signature of the signing officer. |
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Head of Corporate Communications |