Credit Suisse Private Banking update UBS Swiss Equities ... · PDF fileCredit Suisse Private...
Transcript of Credit Suisse Private Banking update UBS Swiss Equities ... · PDF fileCredit Suisse Private...
Credit Suisse
Private Banking update
UBS Swiss Equities Conference
Walter Berchtold, CEO Private BankingZurich, January 17th, 2008
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 2
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 third quarter report 2007.
Cautionary statement
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 3
Credit Suisse and Private Banking at 3Q07
Strategy for Private Banking
International Growth
Client Value
The Integrated Bank
Financial Targets
Topics for today
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 4
4'498
601
4'109
Investment Banking Private Banking Asset Management
9M06 9M07
Pre-tax income in CHF
+43%+19%
(2)%
Pre-tax income margin in %25.1 27.7 39.7 40.9 19.7 27.0
1) Excluding credits received from insurance settlements for litigation costs of CHF 474 m2) Excluding business realignment costs of CHF 192 m
1)
2)
Record nine-month results in Private Banking andInvestment Banking
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 5
1) Of which ~630,000 Wealth Management
! 2.45 million clients1)
! 22,800 employees
! CHF 992 bn AuM
! CHF 173 bn net loans
! More than 160 Wealth Management locations worldwide
! 216 Corporate and Retail Banking branches in Switzerland
Private Banking: Facts and Figures as of Sept 30th, 2007
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 6
Continued strength in Wealth Management in 9M07
38.8 37.339.6 40.7
2004 2005 2006 9M072004 2005 2006 9M07
31
38
CHF bn
Net new assets (NNA)
Assets under management (AuM)
Net new asset growth on AuM in %6% 8% 7% 6.5%
835
568
693
784
43
51
Pre-tax income margin in %
+55%
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 7
Current markets: Where do we stand ?
! Long-term growth prospects for wealth managers remain intact ...
� Rise of emerging markets� Generational transfers of wealth� Private investment banking
! ... and Credit Suisse well positioned to face challenges and to outperform its competitors
� Global presence� Strong balance sheet� Unique One Bank approach
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 8
We have been following a consistent strategy over the last years
Market share gains in
SwitzerlandBest people
Premier global private bank
Premier bank in Switzerland
Client value proposition
International growth
Integrating the banking businesses
Productivity and financial performance
Credit Suisse is well positioned to excel in the current market conditions
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 9
We target continued strong growth in mature markets ...
! Western Europe: Accelerated growth
! USA: Turnaround started
! Japan: Preparing onshore presence
! Australia: Launched onshore
USA Western Europe
Japan
Australia
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 10
... as well as further increased presence in key emerging markets
! Brazil: Expanded presence (Hedging Griffo)
! Mexico: Preparing onshore presence
! Russia: Continued investment
! Gulf: Leverage One Bank locally
! India: Implementing onshore operations
! China: Established onshore presence
China
Brazil
Russia
India
GulfMexico
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 11
PB EMEA: Key figures and achievements
Key Achievements 2007Key Figures
! AuM (CHF bn) 297
! NNA growth1) 8%
! Net revenues growth2) 21%
! Relationship managers 1,163
! Net new RMs 9%
! Gross margin (bps)1) 125
9M 2007
! Focus on further development of core markets: Germany, Italy, Spain, France and UK! Continued investment into Moscow platform! Implementation of onshore operations in India ! Further develop the Gulf region in a One Bank approach! Broaden financing offering in Western Europe
! Opened Rep Offices in Ukraine and Kazakhstan; investment advisory in Israel; onshore operations in Austria
! Strengthened corporate advisory and mid cap services
! Segment initiatives for top executives ! Improved UHNWI coverage! Increased gross margin
Way Forward
1) Annualized2) 9M 2007 vs. 9M 2006
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 12
PB Americas: Key figures and achievements
! AuM (CHF bn) 116
! NNA growth1) 6%
! Net revenues growth2) 14%
! Relationship managers 422
! Net new RMs 2%
! Gross margin (bps)1) 61
Key Figures 9M 2007
! Started turnaround of US business- Expanded product suite: loans, hedge funds,
private equity, structured products- Opened offices in Greenwich (CT),
Philadelphia (PA) and Northbrook, IL! Expanded presence in LatAm
- Acquisition of Hedging Griffo- Opening of Panama office
! Build comprehensive wealth management in the US- Further build product platform- Roll-out advisory process, reporting and workplace tools in 2008
! Further grow Latin America - Enter growing onshore markets of Mexico and Brazil - Exploit synergies between PB and IB
Key Achievements 2007
Way Forward
1) Annualized2) 9M 2007 vs. 9M 2006
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 13
PB Asia-Pacific: Key figures and achievements
! Strengthened management team! Opened branch in Shanghai! Established onshore presence in Australia! Continued product innovation
! AuM (CHF bn) 64
! NNA growth1) 9%
! Net revenues growth2) 41%
! Relationship managers 303
! Net new RMs 32%
! Gross margin (bps)1) 108
Key Figures 9M 2007
! Further invest in Singapore and Hong Kong hubs, e.g. product and solution capabilities, operations platform
! Realize value from newly established onshore presences (Australia, Indonesia, China)! Establish onshore presence in Japan (in 2008)! Leverage One Bank approach
Key Achievements 2007
Way Forward
1) Annualized2) 9M 2007 vs. 9M 2006
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 14
Key for growth in all regions: Hiring top relationship managersNumber of relationship managers in Wealth Management
+300~330 p.a.
~4'100
3'1002'799
2006 2007 E 2010 Target
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 15
! Clear business case for each hired RM (NNA, revenues)
! Average break-even for RMs 18-24 months
! Focus on pay forperformance; limited upfront bonus
Prudent economics
! Entrepreneurial spirit
! Share our view on how we serve clients
! Broad solution and product expertise
Cultural fit
Our hiring philosophy
+
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 16
Client Value: We have successfully implemented structured advisory ...
! One process globally; roll-out to be completed by year-end 2008
! Continued investment since 2000! Full picture: clients' assets, liabilities and needs! State-of-the-art tool support! Leveraging know-how of the integrated bank
! Higher client satisfaction! Increased sales and gross margins! Changing mind-sets and the way we work! Systematic client segmentation
Key features
Benefits
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 17
... and we are rolling out detailed client profitability analysis ...
Revenue Economic profit
Profitable Not profitable PFull transparency of economic profit at client level
PShifts perception of client portfolio
PEnables relationship managers to take entrepreneurial decisions
Clie
nt 1
Clie
nt 2
Clie
nt 3
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 18
AuM
Source of wealth
Life
-cyc
le p
hase
Behaviortype
Needs clusteringClient segments(Examples)
+
! Entrepreneurs! Executives! Family Offices! Inheritors! Buyers-and-
Holders! ...
With market-specific adaptations
... thus providing a sound basis for systematic client segmentation
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 19
! Broad risk diversification
! Large variety of innovative solutions
! Professional investment management
! Tax optimization
! Broad range of components for tailor made solutions
! More time for advice and relationship building
! Improved efficiency
! Reduced revenue volatility
! Higher margins through higher value added
! Increased revenues for IB and AM
Client
Relationship Manager
Bank
Managed Assets as key initiative
Benefits for...
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 20
Solution Specialists
Client
! Investment funds! Discretionary mandates! Alternative investment
products ! Private equity! Private label funds
! IPO! M&A advisory! Derivatives! Structured finance! Trading
Investment Banking! Investment consulting! Trusts! Insurance! Inher. & tax consulting! Margin lending! Mortgages
Asset ManagementPrivate Banking
Relationship Manager
Shared Services
UHNWI: Unique value proposition through integrated coverage and solution delivery ...
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 21
... significantly enhances UHNWI revenues and margins
Total revenues with UHNWI clients1), indexed, 2007
Revenues in WM
Additional revenues in IB and AM
Key drivers:
PEquity derivativesPReal estate financingPEquity capital marketsPMergers & acquisitionsPPrivate placements
1) AuM > CHF 25m
~30 ~30~30
100
37
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 22
Overall, significantly increased One Bank revenues for other segments ...
2006 2007
RevenuesCHF 620m
RevenuesCHF 590m
Asset Management
Investment Banking
RevenuesCHF 1,000m
RevenuesCHF 600m
Asset Management
Investment Banking
CHF 1.2bn CHF 1.6bn (+33%)
Private Banking
Private Banking
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 23
16 19
115112
... which strengthen overall gross margins
2006 9M 20071)
Booked in Wealth Management
Referred to IB/AM
128 134
Gross margin with Wealth Management clients (in bps)
1) Annualized
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 24
Our targets: Delivering strong results, while investing continuously and significantly for growth
! International platforms! Top relationship managers
Growth investments of CHF 300m+ p.a. ...
Pre-tax income margin > 40%
Net new assets growth > 6% (WM only)
Medium term-targets
! Innovative client value proposition! Managed Assets
... supported by revenue growth initiatives ...
! Centers of Excellence! Operational Excellence
... and stringent cost management in existing business
UBS Swiss Equities ConferenceJanuary 17th, 2008, Page 25
Questions & Answers