.credit-suisse Annual Report Part 1 Financial highlights 2000 Editorial
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Transcript of .credit-suisse Annual Report Part 1 Financial highlights 2000 Editorial
CREDIT SUISSE GROUP ANNUAL REPORT 2000/2001
PART I
2 Financial highlights 2000
4 To our shareholders
PART II
6 An overview of Credit Suisse Group6 Organisation8 Financial review
11 Strategic review
PART III
13 Review of business units 16 Credit Suisse Financial Services23 Credit Suisse Private Banking25 Credit Suisse Asset Management 27 Credit Suisse First Boston
PART IV
30 Credit Suisse Group Risk Management
PART V
50 Consolidated financial statements
PART VI
107 Parent company financial statements
118 Five-year summary of selected financial data
120 Management
126 Main offices
127 Information for investors
Important note
Within the framework of the Swiss Accounting and Reporting Recommendations,Credit Suisse Group changed its accounting policies in the year 2000 in order toincrease the transparency for its insurance business and to align with a more interna-tionally-recognised standard. The Group’s financial statements as of 31 December1999 have also been restated to conform with the current year’s presentation. In thetables of this publication, 1999 results will be shown in “previously reported” as well asin “new basis” columns. In text sections, comparisons to 1999 results are based on thepreviously reported figures.
This symbol is used to indicate topics on which further information is available on our web-site. Go to www.credit-suisse.com/annualreport2000/bookmarks.html to find links to therelevant information. The additional information indicated is openly accessible and does notform part of the Annual Report. Some areas of the Credit Suisse Group’s websites are onlyavailable in English.
Share dataNumber of shares issuedShares ranking for dividendAverageShares ranking for dividend as of 31.3.2001/2000Market capitalisation (in CHF m)
Share priceat year-endfor inclusion in Swiss tax returnsyear highyear low
Repayment of capital 1)/dividend
1) Proposal of the Board of Directors to the Annual General Meeting on 1.6.2001.
Earnings per shareOperating earnings per share 1)
Earnings per share – dilutedOperating earnings per share – diluted 1)
Book value per share
1) Excl. amortisation of acquired intangible assets and goodwill, as well as excl. restructuring provision.
Change in %
10102
10 7
Change in %
(33
233814
Previouslyreported
1999in CHF
19.2419.6519.1119.48
119.84
)
Change to previously
reportedin %
8329
#D3314
31 Dec. 2000
300,437,990300,437,990277,775,022300,747,196
92,535
2000in CHF
308312
388.5293
8
2000in CHF
20.8325.9820.7525.89
136.30
31 Dec. 2000
300,437,990300,437,990
92,535
2000in CHF
308312
388,5293
1) 8
2000in CHF
31 Dec. 1999
272,206,488272,206,488271,310,760273,842,638
86,153
1999in CHF
316.5302
316.5212
7
New basis1999
in CHF
15.6616.0715.5415.95
108.48
CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS 2000
Financial calendar
Annual General Meeting 2001
Distribution of par value reduction
First quarter results
Second quarter results
Third quarter results
Friday, 1 June 2001
Wednesday, 15 August 2001
Monday, 21 May 2001
Wednesday, 29 August 2001
Tuesday, 20 November 2001
Share performanceSwiss Market Index Credit Suisse Group
Market capitalisationas of 31 December (in CHF bn)
90
100
80
70
50
30
20
60
40
10
0
91 92 93 94 95 96 97 98 99 00
400
350
300
250
200
150
100
19971996 1998 1999 2000 2001
2
Consolidated income statementOperating incomeGross operating profitNet operating profit 1)
Net profitCash flow
Return on equity (ROE)Credit Suisse Group: – Reported ROE
– Operating ROE 1)
Banking business: – Reported ROE– Operating ROE 1)
Insurance business: – Reported ROE– Operating ROE 1)
– Return on invested capital (ROIC)
Consolidated balance sheetTotal assetsShareholders' equityMinority interests in shareholders' equity
BIS dataBIS risk-weighted assets BIS tier 1 capital– of which non-cumulative perpetual preferred securitiesBIS total capital
BIS ratiosBIS tier 1 ratio
Credit Suisse Credit Suisse First Boston 2)
Credit Suisse Group 3)
BIS total capital ratio Credit Suisse Group
Assets under managementAdvisory assets under managementDiscretionary assets under managementTotal assets under managementNet new assets
Number of employeesSwitzerlandOutside SwitzerlandTotal employees Credit Suisse Group
1) Excl. amortisation of acquired intangible assets and goodwill (2000: CHF 359 m; 1999: CHF 110 m), as well as excl. restructuring provision of CHF 1,074 m, all after tax.2) Ratio is based on a total tier 1 capital of CHF 17.6 bn, of which non-cumulative perpetual preferred securities are CHF 1.1 bn.3) Ratio is based on a total tier 1 capital of CHF 27.1 bn, of which non-cumulative perpetual preferred securities are CHF 1.1 bn.
Change to previously
reported in %
3432351134
Change to previously
reported in %
(316
(173
475046
Change to previously
reported in %
372747
Change to previously
reported in %
12(4
4517
Changein %
26.211.419.327.2
Changein %
34326
)
)
)
Previouslyreported
1999in CHF m
27,8709,1325,3305,2217,983
Previouslyreported
1999in %
18.218.522.122.411.011.118.0
Previouslyreported
31 Dec. 1999in CHF m
722,74634,3681,747
Previouslyreported
31 Dec. 1999in CHF m
213,29828,261
20040,843
in %
6.89.9
13.219.1
31 Dec. 1999in CHF bn
631.9556.2
1,188.141.9
31 Dec. 1999
27,45436,50963,963
2000in CHF m
37,23112,0837,2185,785
10,734
2000in %
17.721.518.223.116.216.626.3
31 Dec. 2000in CHF m
987,43343,5222,571
31 Dec. 2000in CHF m
239,46527,1111,102
43,565
in %
7.113.611.318.2
New basis 1999
in CHF m
26,6447,8634,3604,2507,008
New basis 1999in %
15.616.022.122.41.51.6n/a
New basis31 Dec. 1999
in CHF m
729,02230,6831,154
New basis 31 Dec. 1999
in CHF m
209,87024,833
20037,414
in %
6.89.9
11.817.8
31 Dec. 2000in CHF bn
797.4619.6
1,417.053.3
31 Dec. 2000
28,23552,30380,538
www.credit-suisse.com 3
Credit Suisse Group in very good shape
TO OUR SHAREHOLDERS
Lukas MühlemannChairman and Chief Executive Officer
4
Dear shareholders
Credit Suisse Group had another suc-cessful year. Even in the challengingsecond half of 2000, the Groupsucceeded in sustaining its strong per-formance of the first six months, andnet operating profit for the year rose bya total of 35% to CHF 7.2 billion.Instead of a dividend, the Group’sBoard of Directors will propose a parvalue reduction of CHF 8 per share tothe Annual General Meeting on1 June 2001. This distribution com-pares to a dividend of CHF 7 for 1999and CHF 5 for 1998.
The Group further strengthened itsposition as one of the world’s leadingfinancial services companies throughthe implementation of a number ofstrategic initiatives in 2000. The yearsaw the launch of a host of new ser-vices and innovative products, under-lining the Group’s dynamism and its ef-forts to provide professional, high-quality services in response to all of itsclients’ financial needs. The use of newtechnologies, including the Internet,continues to be of high importance.
2000 was a turbulent year on the financial markets. Against thisbackdrop, Credit Suisse Group stock
put in a varied performance and, afterclimbing to an all-time high in August,closed at end-2000 just below its clos-ing price for the previous year. Over afive-year horizon, however, the shareprice rose by 22% per annum.
Between 1996 – prior to its com-plete restructuring – and 2000, CreditSuisse Group achieved sustainedgrowth and demonstrated high earn-ings strength. Revenue rose by an av-erage of 22% per annum and assetsunder management grew annually by22% during this period. Operatingearnings per share increased by 33%per annum and operating return on eq-uity advanced from 9.8% to 21.5%.We are confident that we will be able tomaintain strong momentum in the future.
While organic growth is the key torealising this objective, we also aim toclose strategic gaps via targeted acqui-sitions.
The acquisition of US investmentbank Donaldson, Lufkin & Jenrette(DLJ) last autumn is the largest andmost challenging move by the Groupsince its 1997 merger with Winterthur.The integration of DLJ will significantlystrengthen Credit Suisse Group’s posi-tion in its two strategic core areas of
“The year saw the launch of a host of new services andinnovative products, underlining the Group’s dynamism andits efforts to provide professional, high-quality services inresponse to all of its clients’ financial needs.”
business, investment banking andasset management. In addition, theGroup made a number of smalleracquisitions to strengthen its assetgathering and asset management busi-nesses.
During 2000, the Group introducedValue Based Analysis (VBA), an ac-cepted measure of value creation. VBAsubtracts the cost of capital used in thebusiness from cash flow in order tomeasure value created in a givenperiod. We will use VBA in both perfor-mance measurement of our businessunits and in management compensa-tion. We have also introduced EconomicRisk Capital (ERC), which is a consis-tent measurement of the capital need-ed to cover all identifiable risks underextreme conditions. ERC will form anintegral part of our capital allocationprocess.
Future prospects look very attrac-tive for financial services companiessuch as Credit Suisse Group. However,financial services providers also faceever-greater challenges: in addition tovying for good staff, they are confront-ed by increasingly fierce competitionbetween the most powerful companiesin the fields of banking and insurance,as well as from new rivals outside the
industry. Credit Suisse Group is verywell positioned to meet these chal-lenges.
On behalf of the Board of Directorsof Credit Suisse Group, I wish to thankour shareholders and our clients for thetrust that they place in our institution.We also owe sincere thanks to our80,000 employees for their commit-ment to client service all over the globe.
Lukas MühlemannChairman and Chief Executive Officer
April 2001
www.credit-suisse.com 5