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
April 23, 2009
Commission File Number 001-15244
CREDIT SUISSE GROUP AG
(Translation of registrant’s name into English)
Paradeplatz 8, P.O. Box 1, CH-8070 Zurich, Switzerland
(Address of principal executive office)
Commission File Number 001-33434
CREDIT SUISSE
(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 AG | |
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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 2.0 billion in the first
quarter of 2009
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Strong return on equity of 22.6%, low risk profile and further strengthened capital position – tier 1 ratio of 14.1% as of quarter-end. |
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Private Banking pre-tax income of CHF 1.0 billion; net new assets of CHF 11.4 billion with strong inflows from both the international and Swiss businesses. |
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Wealth Management business is positioned well for success in a changing industry landscape. |
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Investment Banking returned to significant profitability with pre-tax income of CHF 2.4 billion; strong revenue growth and market share gains in key client businesses, leading to good returns on capital and lower risk usage. |
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Consistent, disciplined fair value accounting approach, including net writedowns of CHF 1.4 billion in commercial mortgage-backed securities (CMBS). |
• Asset Management pre-tax loss of CHF 0.5 billion primarily reflects unrealized private equity losses in line with the decline in public markets; continued progress made on strategy to focus on asset allocation, the Swiss businesses and alternative investments and more closely align them with the integrated bank.
Zurich, April 23, 2009 Credit Suisse Group reported net income attributable to shareholders of CHF 2,006 million in the first quarter of 2009 compared with a net loss of CHF 2,148 million in the prior-year period. Core net revenues were CHF 9,557 million in the first quarter of 2009 compared with CHF 2,926 million in the prior-year period. The return on equity attributable to shareholders was 22.6% and diluted earnings per share were CHF 1.60.
Brady W. Dougan, Chief Executive Officer, said: “We are pleased with Credit Suisse’s performance in the first quarter of 2009. We believe that these results, in particular our strong return on equity, show that our differentiated strategy and our robust, integrated and capital-efficient business model with a low risk profile can be a powerful generator of earnings. The results also show the benefit of the measures we took last year across the bank, including cost reductions and the further strengthening of our capital position.”
Commenting on the strategic measures taken across the bank, Mr. Dougan said: “Wealth Management and our Swiss Corporate & Retail Banking businesses proved their resilience, with strong profitability and total net new assets of CHF 11.4 billion. We are reaping the rewards from the steps we have taken over recent years to expand our international footprint and build a more efficient platform. Wealth Management
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Media Release |
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April 23, 2009 Page 2/7 |
is positioned well for success in a changing industry landscape. We will continue to judiciously invest in growth, both globally and in our Swiss businesses.”
“Investment Banking returned to significant profitability, reflecting the progress that has been made in reducing risk and executing on its client-focused, capital-efficient strategy. We believe that our realigned platform is capable of delivering sustainable profitability and good returns on capital, with reduced earnings volatility. During the quarter, we saw our key client businesses generate strong revenue growth and gain market share. At the same time, we made substantial progress in repositioning a number of previously loss-making businesses, returning these areas to profit this quarter through changed operating models and revised risk limits.”
“Credit Suisse’s strengths are increasingly recognized by existing and potential clients and this provides us with a distinct competitive advantage. Our combination of a differentiated strategy, a strong capital position, an absence of government ownership, strong funding and liquidity, well-positioned businesses, a capital-efficient business model and a significantly lower risk profile makes Credit Suisse a trusted partner for clients.”
Mr. Dougan concluded: “We remain optimistic about the prospects for Credit Suisse, particularly in the context of the overall industry. Our prudent approach in the new market environment has served us well in the first quarter and we will continue to manage our business in this manner. While we may still be affected by continued volatility and market disruptions if difficult conditions persist, we believe that we are in a position to weather the storms and perform well when market opportunities arise.”
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Financial Highlights |
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in CHF million |
1Q09 |
4Q08 |
1Q08 |
Change in % |
Change in % |
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vs. 4Q08 |
vs. 1Q08 |
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Net income/(loss) attributable to shareholders |
2,006 |
(6,024) |
(2,148) |
- |
- |
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Diluted earnings/(loss) per share (CHF) |
1.60 |
(5.00) |
(1.97) |
- |
- |
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Return on equity attributable to shareholders (annualized) |
22.6% |
(62.0)% |
(20.8)% |
- |
- |
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Tier 1 ratio (end of period) |
14.1% |
13.3% |
9.8% |
- |
- |
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Core results 1) |
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Net revenues |
9,557 |
(1,830) |
2,926 |
- |
227 |
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Provision for credit losses |
183 |
486 |
151 |
(62) |
21 |
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Total operating expenses |
6,320 |
6,344 |
5,356 |
0 |
18 |
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Income/(loss) from continuing operations before taxes |
3,054 |
(8,660) |
(2,581) |
- |
- |
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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 in which we do not have a significant economic interest. | |||||
Segment Results
Private Banking
Private Banking, which comprises the Wealth Management and Corporate & Retail Banking businesses, reported income before taxes of CHF 992 million in the first quarter of 2009, down 25% from the prior-year period, reflecting the impact of the challenging operating environment. Net revenues were solid at CHF 2,878 million, down 14%.
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Media Release |
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April 23, 2009 Page 3/7 |
The Wealth Management business reported income before taxes of CHF 646 million in the first quarter of 2009, down 25% from the prior-year period, primarily reflecting lower revenues, which were impacted by a decline in average assets under management, and cautious client behavior. Net revenues in the first quarter of 2009 were CHF 1,925 million, down 17% from the prior-year period, reflecting a decrease in both recurring and transaction-based revenues. Total operating expenses were 12% lower, mainly due to recoveries on non-credit-related provisions in the first quarter of 2009 and lower commission expenses. The pre-tax income margin was 33.6% in the first quarter of 2009 compared with 37.2% in the prior-year period. The gross margin on average assets under management in the first quarter of 2009 was 116 basis points, slightly below the prior-year period.
The Corporate & Retail Banking business reported income before taxes of CHF 346 million in the first quarter of 2009, down 25% from the prior-year period. Net revenues were CHF 953 million, down 9%. Provision for credit losses was CHF 45 million in the first quarter of 2009 compared with net releases of CHF 9 million in the prior-year period. Total operating expenses were down 4%. The pre-tax income margin was 36.3% in the first quarter of 2009 compared with 44.5% in the prior-year period.
Investment Banking
Investment Banking reported income before taxes of CHF 2,414 million in the first quarter of 2009, compared with a loss before taxes of CHF 3,423 million in the prior-year period. Net revenues increased significantly to CHF 6,442 million from negative CHF 503 million in the prior-year period, reflecting the substantial progress that has been made on the realignment of Investment Banking towards a client-focused, capital-efficient strategy. Investment Banking achieved a significant increase in market share in key client businesses, increasing revenues in these areas to CHF 6.3 billion, reflecting strong results in areas including global rates and foreign exchange, US residential mortgage-backed securities secondary trading, cash equities, prime services, and flow and corporate derivatives.
Furthermore, Investment Banking achieved a significant improvement in the performance of the business areas targeted for repositioning. Businesses such as emerging markets trading, US leveraged financed, equity trading strategies and convertibles returned to profitability, achieving total revenues of CHF 1.4 billion in the first quarter of 2009. This reflected the benefit of changed operating models and a revised approach to risk usage.
Investment Banking recorded negative revenues of CHF 1.7 billion in the businesses it is exiting, primarily driven by net writedowns in CMBS of CHF 1.4 billion. However, Investment Banking continued to reduce its legacy positions, cutting holdings of dislocated assets by a further 31% since the end of the fourth quarter of 2008 and a cumulative 92% since the end of the third quarter of 2007.
Of Investment Banking’s total net revenues, Credit Suisse estimates that approximately CHF 1.3 billion was due to more normalized market conditions, including the narrowing of credit spreads, the reduction in the differential between cash and synthetic instruments, the reduction in market volatility and the stabilization of the convertible bond market since the fourth quarter of 2008. Revenues in Investment Banking also benefited from fair value gains on Credit Suisse’s own debt of CHF 365 million.
Investment Banking’s results also benefited from lower non-compensation costs. These fell by 19% in US dollar terms compared with the first quarter of 2008 due to a combination of lower fixed non-compensation costs (including reduced travel and entertainment costs and professional fees) and reduced
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Media Release |
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April 23, 2009 Page 4/7 |
brokerage & commission expenses. Compensation expense of CHF 2.9 billion included the vesting of prior-year compensation awards (including from the Partner Asset Facility plan) and a performance-related compensation accrual for 2009 that reflected the improved risk-adjusted profitability of Investment Banking.
Overall risk capital usage was reduced further during the first quarter of 2009, in line with Investment Banking’s strategic objectives. Excluding the impact of methodology changes, underlying risk-weighted assets in US dollar terms declined 11% from the end of the fourth quarter of 2008, while average one-day Value-at-Risk fell 14% in the same period.
Net valuation adjustments and exposures in Investment Banking
Credit Suisse took a consistent and disciplined approach to fair value accounting throughout the first quarter of 2009. This led to CHF 1.4 billion of net writedowns in CMBS. In the first quarter of 2009, Credit Suisse did not early adopt the new accounting guidance concerning fair value issued in April 2009 by the Financial Accounting Standards Board. Credit Suisse is obliged to and will adopt these new standards in the second quarter of 2009 but does not expect a significant impact on fair values as a result of this guidance.
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Net valuation adjustments | |||
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in CHF million |
1Q09 |
4Q08 |
1Q08 |
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Leveraged finance |
50 |
(889) |
(1'681) |
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CMBS |
(1'401) |
(989) |
(848) |
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RMBS and subprime CDO |
413 |
(1'314) |
(2'752) |
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Total |
(938) |
(3'192) |
(5'281) |
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Selected risk exposures |
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in CHF billion |
1Q09 |
4Q08 |
1Q08 |
Change in % |
Change in % |
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vs. 4Q08 |
vs. 1Q08 |
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Leveraged finance |
0.7 |
0.9 |
20.8 |
(22) |
(97) |
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Commercial mortgages |
7.0 |
8.8 |
19.3 |
(20) |
(64) |
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Residential mortgages and subprime CDO |
2.7 |
5.1 |
7.4 |
(47) |
(64) |
Asset Management
Asset Management reported a loss before taxes of CHF 490 million in the first quarter of 2009, compared with a loss of CHF 544 million in the prior-year period. The result included mostly unrealized investment-related losses of CHF 387 million, mainly in private equity positions, compared with losses of CHF 9 million in the prior-year period, as well as losses on securities purchased from Credit Suisse’s money market funds of CHF 21 million, compared with losses of CHF 566 million in the prior-year period. Net revenues were CHF 6 million in the first quarter of 2009, up CHF 52 million from the prior-year period. Excluding securities purchased from Credit Suisse’s money market funds and investment-related gains/losses, net revenues decreased CHF 115 million to CHF 414 million. Total operating expenses were stable.
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Media Release |
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April 23, 2009 Page 5/7 |
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Segment Results |
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in CHF million |
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1Q09 |
4Q08 |
1Q08 |
Change in % |
Change in % |
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vs. 4Q08 |
vs. 1Q08 |
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Private |
Net revenues |
2,878 |
3,139 |
3,355 |
(8) |
(14) |
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Banking |
Provision for credit losses |
47 |
130 |
(5) |
(64) |
- |
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Total operating expenses |
1,839 |
2,492 |
2,036 |
(26) |
(10) |
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Income before taxes |
992 |
517 |
1,324 |
92 |
(25) |
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Investment |
Net revenues |
6,442 |
(4,618) |
(503) |
- |
- |
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Banking |
Provision for credit losses |
136 |
355 |
155 |
(62) |
(12) |
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Total operating expenses |
3,892 |
2,487 |
2,765 |
56 |
41 |
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Income/(loss) before taxes |
2,414 |
(7,460) |
(3,423) |
- |
- |
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Asset |
Net revenues |
6 |
(356) |
(46) |
- |
- |
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Management |
Provision for credit losses |
0 |
0 |
0 |
- |
- |
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Total operating expenses |
496 |
300 |
498 |
65 |
0 |
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Income/(loss) before taxes |
(490) |
(656) |
(544) |
(25) |
(10) |
Net New Assets
Of the CHF 11.4 billion net new assets in Private Banking in the first quarter of 2009, Wealth Management generated CHF 9.0 billion, which represents a rolling four-quarter average growth rate of 5.0%, with strong inflows from Europe, Middle East and Africa (EMEA), Asia Pacific and Switzerland. The CHF 2.4 billion net new assets generated in Corporate & Retail Banking were mainly from institutional clients but also reflected healthy inflows from private clients. Asset Management reported net asset outflows of CHF 3.5 billion in the first quarter of 2009. The alternative investment strategies business within Asset Management reported net inflows of CHF 1.0 billion, confirming its strength. The Group’s total assets under management from continuing operations were CHF 1,121.7 billion as of the end of the first quarter of 2009, up 1.4% from the end of the fourth quarter of 2008, primarily reflecting positive net new assets in Private Banking and favorable exchange-related movements, partly offset by adverse market movements and net asset outflows in Asset Management.
Benefits of the integrated bank
Credit Suisse generated CHF 1.0 billion in revenues from cross-divisional activities in the first quarter of 2009, compared with revenues of CHF 1.2 billion in the prior-year period.
Capital and liquidity management
Credit Suisse’s capital position remains very strong. The tier 1 ratio was 14.1% as of the end of the first quarter of 2009, compared with 13.3% as of the end of the fourth quarter of 2008. Credit Suisse continues to have a strong liquidity position and therefore intends to redeem its two Upper Tier 2 issues callable in July 2009 (the Credit Suisse, Guernsey Branch EUR 125 million bonds and the Credit Suisse, London Branch GBP 150 million bonds).
Management changes
Credit Suisse today announced that Tobias Guldimann, currently Chief Risk Officer of Credit Suisse Group and a member of the Executive Board, will assume sole responsibility for risk management on the Executive Board with effect from June 1, 2009. At this time, D. Wilson Ervin, Chief Risk Officer of Credit Suisse, will step down from the Executive Board and take up a new role as a Senior Advisor, reporting to Brady W. Dougan. Mr. Ervin and Mr. Guldimann have worked closely together over the last 10 years on the development of Credit Suisse’s risk management strategy and more recently in planning the transition.
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Media Release |
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April 23, 2009 Page 6/7 |
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
As one of the world’s leading banks, Credit Suisse provides its clients with private banking, investment 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 46,700 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 information and non-GAAP information
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. 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 the risk of a continued US or global economic downturn in 2009 and beyond; |
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the direct and indirect impacts of continuing deterioration of subprime and other real estate markets; |
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further adverse rating actions by credit rating agencies in respect of structured credit products or other credit-related exposures or of monoline insurers; |
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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; |
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the ability to achieve our cost efficiency goals and other cost targets; 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 the Credit Suisse Financial Report 1Q09.
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Media Release |
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April 23, 2009 Page 7/7 |
Presentation of Credit Suisse Group’s first-quarter 2009 results via audio webcast and telephone conference
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Date |
Thursday, April 23, 2009 |
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Time |
10:00 Zurich / 09:00 London / 04:00 New York |
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Speakers |
Brady W. Dougan, Chief Executive Officer Renato Fassbind, Chief Financial Officer Paul Calello, CEO Investment Banking The presentations will be held in English |
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Audio webcast |
www.credit-suisse.com/results |
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Telephone |
Switzerland: |
+41 44 580 40 01 |
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Europe: |
+44 1452 565 510 |
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US: |
+1 866 389 9771 |
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Reference: Credit Suisse Group quarterly results |
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Q&A session |
You will have the opportunity to ask questions during the telephone conference following the presentations. | |||
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Playbacks |
Playback available approximately 2 hours after the event at www.credit-suisse.com/results or on the telephone numbers below: | |||
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Telephone replay available approximately 2 hours after the event: | |||
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Switzerland: |
+41 44 580 34 56 |
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Europe: |
+44 1452 55 00 00 |
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US: |
+1 866 247 4222 |
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Conference ID: 90914151# |
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First Quarter Results 2009
Zurich
April 23, 2009
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, 2008 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 first quarter report 2009.
Slide 1
First quarter 2009 results detail
Renato Fassbind, Chief Financial Officer
First quarter 2009 results – Investment Banking detail
Paul Calello, Chief Executive Officer Investment Bank
Introduction
Brady W. Dougan, Chief Executive Officer
Summary
Brady W. Dougan, Chief Executive Officer
Slide 2
Strong 1Q09 results
Strong position with clear and
differentiated
strategic direction
CHF 11.4 bn net new assets in
Private Banking with strong inflows in
international and our Swiss business
Net income of CHF 2.0 bn and
return on equity of 22.6 % in continuing
challenging markets
Further strengthening of
tier 1 capital ratio to 14.1%
Disciplined capital management and
reduced risk profile
Strong and resilient Swiss franchise and
continued
international expansion in
Private Banking
Considerable progress towards focused
and aligned
business strategy in Asset
Management
Substantial progress executing the client-
focused
and capital-efficient strategy in
Investment Banking
Positioned well for difficult markets, but
also to benefit from improvement in the
environment
Strategy and disciplined capital and risk approach delivers
strong absolute results with solid return to shareholders
Slide 3
First quarter 2009 results detail
Renato Fassbind, Chief Financial Officer
First quarter 2009 results – Investment Banking detail
Paul Calello, Chief Executive Officer Investment Bank
Introduction
Brady W. Dougan, Chief Executive Officer
Summary
Brady W. Dougan, Chief Executive Officer
Slide 4
Results overview
EPS = earnings per share
1) Equals basic EPS due to net loss in the quarter
of which
1)
Slide 5
Core results in CHF m, except where indicated
1Q09
1Q08
Net revenues
9,557
2,926
Pre-tax income
3,054
(2,581)
Private Banking
992
1,324
Investment Banking
2,414
(3,423)
Asset Management
(490)
(544)
Corporate Center
138
62
Net income attributable to shareholders
2,006
(2,148)
Diluted EPS attributable to shareholders in CHF
1.60
(1.97)
Return on equity
22.6%
(20.8%)
Cost/income ratio
66.1%
183.0%
Wealth Management with resilient results in challenging markets
Pre-tax income
CHF m
1Q08
2Q08
3Q08
860
4Q08
1Q09
830
699
650
646
4
1)
1)
1)
1)
1)Excluding net provisions relating to ARS of CHF 310 m and CHF 456 m in 3Q08 and
4Q08, and a charge of CHF 190 m relating to the close-out of a client’s account in 4Q08
2) Excluding proceeds from captive insurance settlements of CHF 100 m
389
546
2)
2)
Slide 6
Resilient revenues and strong net new assets
evidence the strength of our franchise
contributing to an increased asset base
However, the environment was characterized
by continued cautious client behavior with low
client activity and defensive investment
decisions
Relationship managers reduced by 120,
or 3%, to create space for talent upgrades,
as announced in December 08
We continue to strategically hire senior
advisors and maintain disciplined investments
into our global expansion
Pre-tax income margin in %
37.2
36.4
32.7
31.7
28.4
Wealth Management with stable gross margin
Net revenues and gross margin on average assets under management
CHF m
2,313
2,048
1Q08
1Q09
117
117
32
30
85
87
Basis points
Transaction-based
Recurring
1Q08
4Q08
4Q08
1,925
1Q09
116
30
86
629
536
495
1,684
1,512
1,430
Slide 7
Lower recurring commissions & fees,
mainly due to a reduction in managed
investment products, were offset by an
increase in recurring net interest income
Reduction in transaction-based revenues
driven by lower product issuing and
brokerage fees as well as lower foreign
exchange transactions income
Gross margin remained stable at 116 bp
Strong net new asset inflows in Wealth Management despite the
lack of global wealth creation
Net new assets (NNA)
CHF bn
10.6
12.6
12.6
9.0
Broad inflows, predominantly from
EMEA, Asia Pacific and Switzerland
Predominantly reflect market share
gains given
lack of wealth creation
Deleveraging, as observed in 4Q08,
was minimal
in 1Q09
Annualized growth in 1Q09 increased
to 5.6%
2006
2007
1Q09
2008
10.7
2005
Quarterly average
Slide 8
Annualized NNA growth on AuM in %
7.5
7.3
6.4
5.0
5.6
Wealth Management assets are up in the quarter – the mix
reflects cautious client behavior
Assets under management
CHF bn
End of
4Q08
Currency
646
Market
movements
Net new
assets
+25
(13)
667
End of
1Q09
9
Our asset mix and revenues
already reflect cautious client
behavior over last few quarters
shift from securities accounts to
on-balance sheet deposits
significant reduction in managed
investment products within
securities accounts
for example, structured
derivatives balance of
CHF
15 bn has now stabilized at
half of peak levels
+3.3%
Average
4Q08
Average
1Q09
699
661
(5.4)%
Slide 9
Credit Suisse has anticipated wealth management market evolution
Our strategy over the last few years anticipated the changes in
the industry landscape and positions us well
Slowdown in
global wealth
creation, lower
asset base and
changes in
client demand
Recently announced (December 08) cost reduction measures
in addition to
long-term continuous cost management initiatives
(Operational Excellence, Centers of Excellence)
Adapted product offering to meet client need for more transparent, liquid and
efficient solutions
Revised pricing to become less dependent on transaction volumes
More selective hiring
Increased
focus on cross-
border banking
services
Successfully expanded international platforms in key geographies
Expertise, client solutions and product offering enables us to thrive
in a level
playing field with Switzerland as a leading wealth management center
Developed industry leading stringent framework which allows for continued
compliant offering of cross-border banking services in line with client demand
Slide 10
Multi-domiciled clients ("multi-shore business")
Client confidentiality
Why wealth management clients will continue to book
cross-border to global wealth management centers
Enhanced product and service offering
Geographical risk diversification
Slide 11
Corporate & Retail Banking holding up well
Strong net new assets of CHF 2.4 bn,
reflecting client confidence in our business
Loan volumes up CHF 5.2 bn, or 5%, since
end 1Q08
Provision for credit losses was CHF 45 m
Reduction in pre-tax income compared to
1Q08 and 4Q08 driven by
significantly lower
gains on loan portfolio hedges
Good initial reaction to affluent client initiative
Pre-tax income
CHF m
1Q08
2Q08
3Q08
464
4Q08
1Q09
390
400
513
346
Slide 12
Pre-tax income margin in %
44.5
39.5
39.6
47.0
36.3
Investment banking returns to profitability with continued
reduction in risk
1) CMBS, leveraged finance, US subprime residential mortgages and subprime CDOs
2) Excluding methodology changes of USD 9 bn
1)
2)
Slide 13
Performance highlights
1Q09
4Q08
1Q08
Revenues (CHF m)
6,442
(4,618)
(503)
Income/(loss) before taxes (CHF m)
2,414
(7,460)
(3,423)
Dislocated assets (USD bn)
7
11
42
Risk weighted assets (USD bn)
145
163
230
Average 1-day VaR (USD m)
121
140
174
Total assets (USD bn)
836
921
1,008
Significant revenues from ongoing businesses
Investment Banking 1Q09 revenues
CHF bn
Key client
businesses
Repositioned
businesses
Exit
businesses
Gains on
own debt
1Q09
Strong results in key client
businesses
including global rates
and FX, US RMBS trading, cash
equities, prime services and flow
and corporate derivatives
Repositioned businesses returned
to profit, particularly emerging
markets, equity trading strategies,
US leveraged
finance and
convertibles
Losses in exit businesses,
including CMBS writedown of
CHF 1.4 bn
Market rebound revenues of
approximately CHF 1.3 bn
Fair value gain on own debt of
CHF 365 m
6.4
6.3
1.4
(1.7)
0.4
1) Estimated market rebound revenues resulting from normalized market conditions, including the narrowing of credit spreads, the
reduction in the differential
between cash and synthetic instruments, the reduction in market volatility and the stabilization of the convertible bond market from 4Q08.
= Market
rebound
revenues
Ongoing
0.7
0.6
Slide 14
1)
Asset Management affected by unrealized private equity losses
Further downturn in global markets
resulted in unrealized losses
of
CHF 387 m, mainly in private equity
positions
Stabilization of net new assets with
overall outflow of CHF
3.5 bn, but
continued net inflows of CHF 1.0 bn in
higher margin alternative investments
Pre-tax income
CHF m
1Q09
pre-tax
loss
Investment-
related
losses
Money
market
lift-outs
(490)
+387
+21
Adjusted
1Q09 pre-
tax result
(82)
Slide 15
Asset management with stabilized asset base and resilient margin
Gross margin
on AuM (bps)
39 41 40
Fee revenues
and carried
interest
(CHF m)
Assets under
management
(CHF bn)
201
160
165
147
142
143
MACS
AI
Asset management
fees
Placement &
performance
fees and carried
interest
Stabilization of asset base in
MACS and AI in 1Q09
Average asset base reduced
by 27% YoY
Other
Based on asset
management fees for
MACS, AI and JVs
517
412
406
169
110
98
Asset management fees down
by 19% YoY
Market performance-related
revenue items at historic lows
Stable recurring gross margin
AI = alternative investment strategies
MACS = multi asset class solutions
387
351
314
1Q08
4Q08
1Q09
32
59
(2)
Slide 16
Progress on strategic agenda in Asset Management
Business focused around core competencies in alternative
investments and
asset allocation (MACS)
Sold sub-scale traditional businesses to Aberdeen –
on track to close
transaction in 3Q09
Hired new Global head of distribution
Completed hiring of 25 heads focusing on global institutional clients
Significantly reducing general and administrative expenses
Focus
Build out
distribution
Improve
profitability
Investment
performance
Intensified focus on investment performance
75% of classic mandates in MACS outperformed their benchmark since
beginning of 2009
74% of our core real estate assets outperformed their benchmark over the
1 year period; 91% over the 5 year time band
70% of high yield assets and 90% of USD CDO accounts performed above
benchmarks in 1 and 5 year time bands
MACS = multi asset class solutions
Slide 17
Maintained strong funding structure
1,156
1,156
Assets
1Q09
Capital & liabilities
1Q09
Reverse 289
repo
Trading 364
assets
Loans 229
Other 186
Repo 284
Trading liab.161
Short-term 76
Long-term 157
debt
Deposits 275
Capital 203
& Other
120%
coverage
Asset and liabilities by category (period-end in CHF bn)
Strong balance sheet structure maintained in 1Q09
Total assets were reduced by CHF 14 bn
business related decreases of CHF 74 bn (6%)
offset by FX movement of CHF 60 bn
Short-term liabilities were down 24%, compensated by
increases in deposits and long-term debt
Stable and low cost deposit base a key funding
advantage
We intend to redeem two upper tier 2 issues callable in
July (EUR 125 m and GBP 150 m)
Issued CHF 3 bn of unsecured debt – one of a handful of
non-government guaranteed placements
Cash
1) Includes due from/to banks
Slide 18
1)
1)
88
21
(15)
19
(23)
50
Investment Bank credit position
Developed Market Lending
Since January 1, 2008, corporate loan book net loss of CHF 0.4 bn includes
3.0 bn of FV writedowns
(offset by CHF 2.6 bn gains on hedges)
Corporate loan portfolio is around 80% investment grade, mostly accounted
for on a
fair value basis. Fair value is a forward looking view, and includes
(inter alia) market expectations of future default risk
Fair value method means these loans are held at more conservative levels –
pro forma accrual credit provisions for same would have been CHF 0.7 bn
Developed market loans are carried at an average mark of approx. 95%
(net of fair value discounts and credit provisions)
Developed Markets
Emerging Markets
Unfunded
commitments
Loans
(Hedges)
1) Excludes repo and other collateralized securities financing;
exposure based on risk management view
2) Includes revenues as well as general and specific provisions
Loans
(Hedges)
CHF bn
CHF bn
Risk significantly reduced by fair value discount already
recognized, as well as significant hedges
Emerging Market Lending
Net exposure of CHF 6 bn, accounted for using a mix of fair value and
accrual basis
Well diversified by region and name, evenly spread between EMEA,
Americas and Asia
Emerging market loans are carried at an average mark of approx. 90%
(net of fair value discounts and credit provisions)
Slide 19
2)
2)
1)
Private Banking lending
Primary accrual loan book: CHF 177 bn
Primarily focused on Switzerland (CHF 150 bn)
85% collateralized (mortgages & marketable securities)
Strong credit quality: over 90% investment grade
Wealth Management: CHF 71 bn
Lombard (securities-backed) lending and mortgage backed lending,
with conservative haircuts
Corporate and Retail Banking: CHF 106 bn
Corporate loans & commercial mortgages: CHF 53 bn
Good credit quality with low concentrations
Retail banking: CHF 53 bn (of which 49 bn is residential mortgages)
Switzerland avoided real estate ‘bubble’ seen in other markets
Underwriting is based on strict income and LTV requirements (average LTV is 65%)
Consumer loans and credit card exposure CHF 3.5 bn
Credit Suisse does not make unsecured consumer loans outside of Switzerland
AAA to A
6% BB+ to BB
2 % BB- and below
BBB
63%
29%
Portfolio ratings
composition, by CRM
transaction rating
Private Banking loan book
LTV = Loan to value
Slide 20
Current risk issues in market
Monolines
We do not rely on monolines in our hedging
Inventory positions of monoline-wrapped paper are modest and offset by CDS and
other forms of protection
US auto
industry
Net credit exposure to US auto manufacturers and suppliers is less than CHF 0.2 bn
Private equity
Total exposure CHF 2.5 bn, written down by 25% over last 6 months
Well diversified; exposure mainly to mid-market companies with moderate leverage
Auction rate
securities
Market value of CHF 0.4 bn (among smallest of the settlement banks)
Average price of below 60%
Level 3
assets
Expect gross Level 3 assets to decline by 18%, to USD 74 bn
roughly 50% of the decline was from sales, with the remainder from price
fluctuations and net changes in market visibility
USD 13 bn of level 3 assets are in the form of private equity, USD 9 bn of which is
consolidated 3rd party minority interests in funds that do not represent an economic
risk to Credit Suisse
1) Final numbers to be disclosed when the 1Q09 financial statements are filed with the SEC on or about May 7, 2009
Slide 21
1)
Continued strengthening of industry leading capital position
1Q08
2Q08
3Q08
4Q08
1Q09
Basel 2 risk-weighted assets (in CHF bn) and capital ratios (in %)
Underlying RWA decreased CHF 22 bn,
or 9%, offset by combined CHF 26 bn
foreign exchange translation impacts and
methodology changes
4Q07
Basel 2 Tier 1 ratio increased further to
14.1%
Core tier 1 ratio increased to 9.3%
FINMA leverage ratio improved to 3.8%
Ratios include deduction for significant
but prudent dividend accrual for 2009
10.0
9.8
10.2
10.4
13.3
14.1
= foreign exchange impacts and methodology changes
301
302
308
257
261
324
235
Slide 22
First quarter 2009 results detail
Renato Fassbind, Chief Financial Officer
First quarter 2009 results – Investment Banking detail
Paul Calello, Chief Executive Officer Investment Bank
Introduction
Brady W. Dougan, Chief Executive Officer
Summary
Brady W. Dougan, Chief Executive Officer
Slide 23
Repositioned businesses
Exit businesses
Emerging Markets – maintain
leading business but with more
limited risk/credit provision
US Leveraged Finance – main-
tain leading business but focus
on smaller/quicker to market
deals
Corporate Lending – improved
alignment of lending with
business and ability to hedge
Cash equities
Electronic trading
Prime services
Equity derivatives – focus on
flow and corporate trades
December 2008: Realignment of the Investment Bank
Equity Trading – focus on
quantitative and liquid
strategies
Convertibles – focus on client
flow
Highly structured derivatives
Illiquid principal trading
Develop existing strong
market positions
Maintain competitive advantage
but reduce risk and volatility
Release capital and resources;
reduce volatility
Global Rates
Currencies (FX)
High Grade Credit / DCM
US RMBS secondary trading
Commodities trading (joint
venture)
Strategic advisory (M&A)
and capital markets
origination
Mortgage origination and CDO
Non-US leveraged finance
trading
Non-US RMBS
Highly structured derivatives
Power & emission trading
Origination of slow to market,
capital-intensive financing
transactions
Key client businesses
Equi-
ties
Fixed
In-
come
Advi-
sory
Slide 24
Grow client and
flow-based businesses
Revenues from key client businesses increased to CHF
6.3 bn from
CHF 3.0 bn in 4Q08
Combination of improved market share and favorable trading conditions
Priorities
1Q09 achievements
Continued focus on exiting
identified businesses
Reduced dislocated assets by 31% from 4Q08
Disciplined valuation approach and
consistent accounting treatment,
with net writedowns of CHF 0.9 bn
Reduce costs
Headcount declined by 1,700, or 8%, from 1Q08
Non-compensation expenses down 19%, in USD, from 1Q08
Strong results and substantial progress on executing client
focused, capital-efficient strategy
Reduce risk
Reduced RWA by 11% from end of 4Q08 to USD 145 bn
Reduced average 1-day VaR by 14% from 4Q08 to USD 121 m
Improve profitability from
repositioned businesses
CHF 1.4 bn of revenues
from repositioned businesses compared
to a loss of CHF 2.3 bn in 4Q08
1) Excluding methodology changes
Slide 25
1)
Fixed income revenues
Key client businesses
Repositioned businesses
Exit businesses
1Q08
(CHF bn)
4Q08
Record revenues in global rates
and foreign exchange and high
grade trading
Strong results in US RMBS
secondary trading
Higher revenues from investment
grade debt issuance
New operating models lead to
improved revenues
Significant improvement in
emerging markets and US
leveraged finance
Valuation gains of CHF 0.4 bn in
corporate lending compared with
valuation reductions in 2008
Significantly lower writedowns due
to substantial reduction in
dislocated assets
CMBS portfolio marked at 59%,
down from 72% as of 4Q08
1Q09
4.4
2.7
1.8
1Q08
4Q08
1Q09
1.0
(1.8)
(0.3)
1Q08
4Q08
1Q09
(1.6)
(5.5)
(4.2)
Slide 26
Equity revenues
Strong revenues in cash
equities and prime services
Solid performance in
flow derivatives
Underwriting revenues adversely
affected by a decrease in equity
issuances
Strong results in equity trading
strategies and convertibles
Ongoing business to focus on quanti-
tative and liquid trading strategies
Convertibles business to focus on
client flow; sell-down of trading book
mostly complete (86% reduction
from year-end 2007)
Risk reduction largely complete
in highly illiquid trading activities
Significant reduction in losses
from structured derivatives
1.9
0.3
2.0
0.5
(0.9)
0.1
0.0
(1.6)
(0.7)
Key client businesses
Repositioned businesses
Exit businesses
1Q08
(CHF bn)
4Q08
1Q09
1Q08
4Q08
1Q09
1Q08
4Q08
1Q09
Slide 27
23
30
72
89
53
41
Continued reduction in risk-weighted assets and VaR in the quarter
Investment Banking RWAs (period end in USD bn)
2007
1Q08
2Q08
3Q08
4Q08
174
186
159
140
Excluding methodology changes, RWA declined
11%
to USD 145 bn, while reported RWA
declined 6%
Cumulative reduction in RWA, excluding
methodology changes, of
39% from end of 2007
Year-end 2009 target of USD 135 bn
as positions
in exit businesses are sold
Continued risk reduction
1Q09
121
96
Investment Banking average 1-Day VaR (USD m)
Positioning (underlying)
Dataset / methodology changes
1) Indexed to ‘pre crisis’ (June 2007) levels
1Q08
2Q08
3Q08
4Q08
1Q09
End 1Q09
1-day Value-at-Risk (VaR) declined
14% vs. 4Q08 average
(quarter-on-quarter)
30% vs. 1Q08 average
(year-on-year)
Stable revenues – no backtesting exceptions
in 1Q09
163
154
193
214
230
236
Methodology
changes
145
Slide 28
1)
1) excluding US prime, US Alt-A and European/Asian residential mortgage exposures of CHF 2.4 bn
Sustained and consistent risk exposure reduction
3Q07
4Q07
(92)%
1Q08
2Q08
3Q08
4Q08
99
12
4
36
59
27
31
43
67
1Q09
Further reduction in dislocated assets
CMBS reduced by 20% to CHF 7.0 bn
Writedown of CHF 1.4 bn
Average price is 59%, down from 72% at end
of 4Q08
Loan-to-value on a mark-to-market basis remains
83%, as property and loan prices fell by a similar
amount in 1Q09
Combined net valuation gains of
CHF 463 m in RMBS,
subprime CDO and
leveraged finance
Consistent approach to valuation and no
reclassifications
to hold or accrual books
8
Dislocated asset balances in Investment Banking
CHF bn
Leveraged finance 0.7 bn
Subprime residential 0.3 bn
mortgages and CDO
Commercial mortgages 7.0 bn
Exposure at end of 1Q09
CHF 8.0 bn
Slide 29
1)
Compensation and non-compensation expenses
Compensation expenses (CHF m)
Non-compensation expenses (NCE) (CHF m)
1Q08
3Q08
1Q09
1Q09 includes vesting of PAF awards, expensing of prior-
year deferred compensation awards and a variable
compensation accrual which reflects improved economic
profitability
Reflects both the risk-adjusted profitability of each business
line, the risk-adjusted profitability of the Investment Bank
and the industry environment
Compensation/revenue ratio of 45% is a result, not a
driver, of this accrual
2,907
1,470
1,674
1Q08
4Q08
1Q09
1,350
1,091
349
742
350
1,000
272
713
985
2)
1) 48% excluding fair value gains on own debt
2) Excludes litigation reserve releases of CHF 333 m and CHF 73 m in 4Q08 and 3Q08
respectively and a net credit of CHF 134 m pertaining to litigation in 2Q08
G&A expenses
Commission expenses
4Q08
2Q08
2,412
1,450
2Q08
1,073
296
777
3Q08
1,162
347
815
2)
2)
Reduction in commission expenses primarily due to lower
transaction volumes; commissions also benefited from
lower brokerage rates and bank charges negotiated with
intermediaries
G&A expenses declined due to lower travel and
entertainment expenses and reduced legal and
professional fees
Non-compensation expenses were down 19% in USD
and 10% in CHF from 1Q08
Slide 30
1)
Of which NCE related to exit businesses in CHF m
147
148
143
206
97
Improved margins and market share across many products
Product
Credit Suisse
Revenue impact
Credit Suisse
Market Share (%)
Industry
Volume ($)
Industry
Margin (%)
Trends vs. 4Q08
x
x
=
Foreign exchange
US RMBS trading
Global rates
M&A
Investment grade debt underwriting
High yield underwriting
Equity underwriting
Cash equities
Electronic trading
Prime services
High grade trading
Slide 31
Fixed
in-
come
Equ-
ity
In-
vest-
ment
Bank-
ing
Priorities
Full-year 2009 objectives
Grow client and
flow-based businesses
Grow market share through opportunities from market consolidation,
our recognized strong capital position and the integrated
bank model
Continue to exploit favorable market conditions
Continued focus on exiting
identified businesses
Dedicated wind-down teams to substantially complete
the sale of legacy
positions through 2009
Reduce costs
Continued discipline in non-compensation expenses
Ongoing headcount reduction, as previously announced; consequent
benefit to compensation and non-compensation expense
Aligned variable compensation accrual with risk-adjusted
profitability and industry environment
Reduce risk
Target RWA usage of USD 135 bn by year-end 2009, as capital is
released from the sale of positions in exit businesses
Improve profitability from
repositioned businesses
Continue to implement revised operating models with
disciplined
allocation of risk and capital usage across the Investment Bank
Continued execution of client-focused, capital-efficient strategy
Slide 32
Questions &
Answers
Slide 33
First quarter 2009 results detail
Renato Fassbind, Chief Financial Officer
First quarter 2009 results – Investment Banking detail
Paul Calello, Chief Executive Officer Investment Bank
Introduction
Brady W. Dougan, Chief Executive Officer
Summary
Brady W. Dougan, Chief Executive Officer
Slide 34
Summary
We have a robust business model that is
a powerful generator of earnings
Differentiated strategy
Client-focused and integrated
Capital-efficient with lower risk profile
Considerable progress towards
focused and aligned
business strategy
in Asset Management
Substantial progress executing the
client-focused
and capital-efficient
strategy in Investment Banking
Positioned well for difficult markets,
but also to benefit from improvement
in the environment
Strong and resilient Swiss franchise
and continued
international expansion
in Private Banking
Slide 35
Appendix
Slide 36
Market rebound backdrop
Slide 37
Troubled assets detail
Slides 38 to 41
Risk reduction in Investment Banking
Slide 42
-100
0
100
200
300
400
500
Basis risk / hedge relationships
Cash to CDS spread
Rebound revenues due to partial market normalization in 1Q09
Equity volatility and credit spreads still extremely
high in historic terms, although reduced from
multi-year highs seen in 4Q09
Rebound primarily drive by normalization of basis
risk levels (bottom chart), as hedging
relationships were re-established by partial return
of liquidity
Market rebound revenues estimated at
approximately CHF 1.1 bn in fixed income and
CHF 0.2 bn in equities
Fixed income businesses benefiting in
corporate lending, RMBS and investment grade
trading
Equities businesses benefiting in flow and
corporate derivatives and convertibles
Dec 07
Dec 08
Dec 06
Credit spreads
Leveraged Loans
Emerging Markets
Slide 37
Option volatility (VIX)
Equity volatility
Further exposure reduction but additional
writedowns due to deteriorating credit markets
Business area (in CHF bn)
Change
Exposures
1) Exposure shown gross of index hedges of CHF 4.5 bn (CHF 8.2 bn in 4Q08) held in focus areas. These hedges include non-investment grade, crossover and non-residential
mortgage
indices only. Excludes other indices (e.g. investment grade) and single name hedges. Residential hedges embedded in US Subprime residential mortgage & CDO trading
are included in the net exposures shown above and not included in
the total for Index hedges.
1Q09
Origination-
based
(exposures
shown gross)
Trading-
based
(exposures
shown net)
4Q08
Net
(writedowns/writeups)
1Q09
4Q08
Slide 38
1)
Leveraged finance
0.7
0.9
(22%)
0.1
(0.9)
Commercial mortgages
7.0
8.8
(20%)
(1.4)
(1.0)
Residential mortgages and
CDO Trading
2.7
5.1
(47%)
0.4
(1.3)
of which US subprime
0.3
1.9
(84%)
Total
(0.9)
(3.2)
7
Commercial mortgage (CMBS) exposure reduction
1) Includes both loans in the warehouse as well as securities in syndication; excludes
non-recourse term financing of CHF 0.4 bn to support certain sales transactions
2) This price represents
the average mark on the loans and bonds combined
36
26
(81)%
19
15
13
9
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1)
1Q09
Commercial mortgages (CHF bn)
Exposure by region
Exposure reduced by CHF 2bn, from sales
and writedowns (with some offset from FX)
Average price moved from 72% to 59% ,
leading to writedowns of CHF 1.4 bn in 1Q09
Positions are fair valued; no reclassifications to
accrual book
Portfolio is well-diversified with good original
LTV ratios: 69% average
LTV on a MTM basis remains 83%, as
property and loan prices fell by a similar
amount in 1Q09
Other
8%
Asia
11%
Germany
35%
US
23%
UK
2%
Other
Continental
Europe
29%
Office
41%
Retail
20%
Hotel
17%
Multi-family
14%
Exposure by loan type
Slide 39
2)
Commercial mortgage (CMBS) exposures
Gross exposure reduced 20% to CHF 7.0 bn
Average mark is 59%
Average original loan-to-value (LTV) is 69%
(4Q08 70%)
Development loans are less than 5% of portfolio
Positions are fair valued; No reclassifications to
accrual book
Loan-to-value on a mark-to-market basis remains
83%, as property and loan prices fell by a similar
amount in 1Q09
(CHF bn)
1Q09
4Q08
Roll-forward of exposure (CHF bn)
1) Includes both loans in the warehouse as well as securities in syndication; excludes term financing CHF 0.4 bn to support certain sales transactions
(CHF bn)
1Q09
4Q08
Slide 40
1)
Warehouse exposure
7.0
8.8
Exposure 4Q08
8.8
New loan originations
0.0
Sales, writedowns
and FX
(1.8)
Exposure 1Q09
7.0
Net writedowns
(1.4)
(1.0)
Residential mortgages and subprime CDO trading
47% decrease in exposures during 1Q09
Long subprime exposure reduced from
CHF 3.1 bn to CHF 1.6 bn, or 48%, during
1Q09
Exposure reduced by a combination of sales
and hedging
CHF 0.4 bn of write-backs during 1Q09
Exposures are fair valued using market levels
1Q09
4Q08
Net exposure (CHF bn)
1Q09
4Q08
1) All non-agency business, including higher quality segments and CDO subprime only
(CHF bn)
Slide 41
1)
Net writedowns/writebacks
0.4
(1.3)
US subprime
0.3
1.9
US Alt-A
0.3
0.6
US prime
0.3
0.6
Europe
0.8
0.8
Asia
1.0
1.2
Total net exposure
2.7
5.1
Dislocated asset
Executing capital-light strategy for Investment Bank
Directional credit trading
4Q07
(88)%
2Q08
4Q08
1Q09
(31)%
(39)%
(86)%
Basis risks
Selected trading areas: Convertibles,
equity relative value, subprime CDO
Leveraged finance, commercial
mortgages, US subprime residential
mortgages and sub-prime CDOs
30
6.2
145
Selected trading areas: traded loans,
emerging market bonds, preferred &
hybrid securities
Key
trading
book
trends
(80)%
Overall
risk
measures
IB Average 1-Day VaR (USD m)
IB Position risk ERC (USD bn)
IB Risk-weighted assets (USD bn)
(Excluding 1Q09 methodology changes)
(Constant June 2007 dataset/methodology)
(Excluding 1Q09 methodology changes)
(66)%
4Q07
2Q08
4Q08
1Q09
4Q07
2Q08
4Q08
1Q09
4Q07
2Q08
4Q08
1Q09
4Q07
2Q08
4Q08
1Q09
4Q07
2Q08
4Q08
1Q09
Slide 42
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 AG and CREDIT SUISSE |
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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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Credit Suisse Group AG and Credit Suisse |
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Date: April 23, 2009 |
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/s/ Charles Naylor |
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Head of Corporate Communications |
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*Print the name and title under the signature of the signing officer. |
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Credit Suisse Group AG and Credit Suisse |