International Wealth Management presenting at the Deutsche Bank Global Financial ... ·...

International Wealth Management presenting at the Deutsche Bank Global Financial Services Conference

Iqbal Khan

CEO International Wealth Management

May 29, 2018 New York

2 May 29, 2018 Iqbal Khan, CEO International Wealth Management

Disclaimer

This material does not purport to contain all of the information that you may wish to consider. This material is not to be relied upon as such or used in substitution for the exercise of independent judgment.

Cautionary statement regarding forward-looking statements

This presentation contains forward-looking statements that 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, 2017 and in the “Cautionary statement regarding forward-looking information" in our 1Q18 Financial Report, published on May 3, 2018 and 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.

In particular, the terms “Estimate”, “Illustrative”, “Ambition”, “Objective”, “Outlook” and “Goal” are not intended to be viewed as targets or projections, nor are they considered to be Key Performance Indicators. All such estimates, illustrations, ambitions, objectives, outlooks and goals are subject to a large number of inherent risks, assumptions and uncertainties, many of which are completely outside of our control. These risks, assumptions and uncertainties include, but are not limited to, general market conditions, market volatility, interest rate volatility and levels, global and regional economic conditions, political uncertainty, changes in tax policies, regulatory changes, changes in levels of client activity as a result of any of the foregoing and other factors. Accordingly, this information should not be relied on for any purpose. We do not intend to update these estimates, illustrations, ambitions, objectives, outlooks or goals.

We may not achieve the benefits of our strategic initiatives

We may not achieve all of the expected benefits of our strategic initiatives. Factors beyond our control, including but not l imited to the market and economic conditions, changes in laws, rules or regulations and other challenges discussed in our public filings, could limit our ability to achieve some or all of the expected benefits of these initiatives.

Estimates and assumptions

In preparing this presentation, management has made estimates and assumptions that affect the numbers presented. Actual results may differ. Annualized numbers do not take account of variations in operating results, seasonality and other factors and may not be indicative of actual, full-year results. Figures throughout this presentation may also be subject to rounding adjustments. All opinions and views constitute judgments as of the date of writing without regard to the date on which the reader may receive or access the information. This information is subject to change at any time without notice and we do not intend to update this information.

Statement regarding non-GAAP financial measures

This presentation also contains non-GAAP financial measures, including adjusted results. Information needed to reconcile such non-GAAP financial measures to the most directly comparable measures under US GAAP can be found in this presentation in the Appendix, which is available on our website at www.credit-suisse.com.

Statement regarding capital, liquidity and leverage

As of January 1, 2013, Basel III was implemented in Switzerland along with the Swiss “Too Big to Fail” legislation and regulations thereunder (in each case, subject to certain phase-in periods). As of January 1, 2015, the Bank for International Settlements (BIS) leverage ratio framework, as issued by the Basel Committee on Banking Supervision (BCBS), was implemented in Switzerland by FINMA. Our related disclosures are in accordance with our interpretation of such requirements, including relevant assumptions. Changes in the interpretation of these requirements in Switzerland or in any of our assumptions or estimates could result in different numbers from those shown in this presentation.

Unless otherwise noted, leverage exposure is based on the BIS leverage ratio framework and consists of period-end balance sheet assets and prescribed regulatory adjustments. The look-through tier 1 leverage ratio and CET1 leverage ratio are calculated as look-through BIS tier 1 capital and CET1 capital, respectively, divided by period-end leverage exposure. Swiss leverage ratios are measured on the same period-end basis as the leverage exposure for the BIS leverage ratio.

Sources

Certain material in this presentation has been prepared by Credit Suisse on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. Credit Suisse has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness or reliability of such information.


Appendix

Successfully Executing our Strategy 2

An Attractive Business with a Strong Market Position 1

Agenda International Wealth Management


IWM is a major contributor to Credit Suisse's growth strategy with low consumption of resources & risks

Note: Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in the Appendix 1 Group Results excluding Strategic Resolution Unit

24%

21.8 bn

Adjusted

revenues

5.1 bn 38 bn

238 bn

Risk-

weighted

assets

16%

1.5 bn

32%

4.6 bn

Adjusted

pre-tax

income

99 bn

12%

857 bn

Leverage

exposure

Swiss

Universal

Bank

Credit Suisse

IWM Contribution to Credit Suisse Core Results in 20171

International

Wealth Management

Private Banking

Asset Management

International

Wealth

Management

Other

Divisions

Legend:

Asia

Pacific

Global

Markets

Investment

Banking &

Capital

Markets

Corporate Center

Strategic Resolution

Unit

in CHF


IWM with significant international PB franchise and a global AM footprint

Private Banking Asset Management

1

Swiss Fund

Market Provider5

Global Alternative

Asset manager6

PB

ranking

Emerging

markets2 Europe

CHF ~219 bn AuM

(~70% from strategic and other UHNW clients)

CHF ~148 bn AuM4

(~45% from strategic and other UHNW clients)

Traditional investments:

CHF ~217 bn AuM

Alternative investments:

CHF ~122 bn AuM

AM

ranking

~85% from Institutional & 3rd Party clients ~15% from Credit Suisse Private Banking clients

~7% CAGR regional wealth

growth to 20253

~4% CAGR regional wealth

growth to 20253

2 7

Note: AuM data as of end 2017 1 Euromoney 2018 Survey for 'Best Private Banking Services Overall‘, tied first rank based on average ranking in Europe, Central & Eastern Europe, Middle East & Africa, Latin America and Caribbean 2 Middle East & Africa, Emerging Europe and Latin America 3 Credit Suisse and McKinsey Wealth Pools 2017 4 Including International Private Clients business 5 Swiss Funds & Asset Management Association media release March 2017 6 Willis Towers Watson Global Alternatives Survey 2017, company filings

Across

our regions1


Appendix

Successfully Executing our Strategy 2

An Attractive Business with a Strong Market Position 1

Agenda International Wealth Management


268 308 327 474

2015 2016 2017 2018

in CHF mn IWM adjusted pre-tax income

Delivering a step change in profitability and on track to 2018 PTI target

Note: Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in the Appendix † See Appendix

+47%

1,016 1,109

1,497

1.8 bn target

Adjusted return on regulatory capital†

22% 23% 29% 35% in 1Q

+45% 1Q

2Q to 4Q


Successful execution of the priorities presented at our Investor Day 2016…

Grow PTI by around

CHF 150 mn in

Europe

Grow leading

franchises in Middle

East & Africa and

Emerging Europe

Balance transition

with growth ambition

in Latin America

Note: Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in the Appendix Revenues and PTI growth: 2017 vs. 2016, NNA annualized growth during 2017 1 Shown as absolute as the business turned to profitability and percentage change is therefore not meaningful

Grow adjusted PTI by

over CHF 200 mn in

Asset Management

11% Net revenues growth



22% Management fees growth

8% NNA growth rate

8% NNA growth rate

(2)% NNA growth rate

6% NNA growth rate

Clear

progress

Clear

progress

Clear

progress

Clear

progress

33% Pre-tax income growth

34% Pre-tax income growth

32% Adj. pre-tax income growth

>130 mn Pre-tax income growth1

How we executed in 2017 against our end 2018 goals:


…while consistently delivering our client focused strategy

Leverage our Investment Engine

Capitalize on AM’s product expertise

Enhance lending capabilities

Grow Strategic Clients franchise

Strategic RM hiring

Develop footprint

Develop digital service model

Efficiency & automation

Strengthen compliance & risk

Deliver

Client

Value

Enhance

Client

Proximity

Increase

Client

Time

CHF 15 bn mandates sales; 3-year outperformance1

PB channel drives ~40% of AM NNA2

CHF 2.8 bn net loan growth at 9 bps higher loan margin3

Strategic clients revenues up 30%; ~55% of PB NNA4

Double digit growth in RM productivity

Built-out capabilities in UK & Lux. hubs, Mexico onshore

Launched digital client collaboration tools & e-onboarding

Streamlined account opening; accelerated time-to-market

Further enhanced compliance & risk oversight

2017 achievement (examples)

1 Asset Risk Consultants PCI Report 1Q18 2 Excluding NNA from Investments & Partnerships 3 Loan margin 2017 vs 2016 4 Revenues growth 2017 vs. 2016; share of IWM PB NNA in 2017

Objectives


Successful house view performance rewarded by strong mandate inflows

Investment performance relative to peers 3-year period from end 1Q15 through end 1Q181

Mandates penetration at 31%3; aim to increase to >40%

2016 2017

Mandates net sales momentum in CHF bn

Advisory2

Discretionary

15.3

1.7

0%

1%

2%

3%

4%

5%

6%

7%

Yield Balanced Growth Equities

CHF EUR USD

One market view across the firm

House View outlook

Single and bank-wide House

View, combining PB and GM economic & market analysis capabilities

Consolidating our research and

strategy teams even further

Continued roll out of GM equity research into our

global WM franchise

1 Asset Risk Consultants PCI Report 1Q18 2 Credit Suisse Invest 3 As of end 2017

Capitalizing on our Asset Management product expertise

3.5

15.9

2016 2017

1 Excluding NNA from Investments & Partnerships

~40% of NNA

through Private Banking channel

Private

Banking

Institutional

and 3rd parties

Strong client demand is expected to drive a

further increase in PB/AM collaboration

~15%

Aim to grow through close partnership with GM and strong direct

coverage of top

institutions and 3rd-party placement agents

Asset Management AuM breakdown by sales channel Asset Management net new assets (NNA)1

in CHF bn end 2017

May 29, 2018 Iqbal Khan, CEO International Wealth Management 11

186

287

381

2015 2016 2017

Investments &

Partnerships

Management fees

Performance & placement fees

Operating

businesses1 1,037

1,095

1,304

291 232 232

2015 2016 2017

Successfully transitioned AM business mix towards wholly-owned operating businesses, while growing management fees and PTI

86 75 78 32 31 32

Note: Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in the Appendix 1 All of AM business excluding Investments & Partnerships

Asset Management adjusted pre-tax income Asset Management adjusted revenue contribution by type/business in CHF mn in CHF mn

Adjusted cost / income ratio in %

Fee-based gross margin in basis points

May 29, 2018 Iqbal Khan, CEO International Wealth Management 12

+26% +105%


Loan growth at increasing margins and strong credit risk history

160

169

2016 2017

+9

1 2016 restated from prior disclosure to reflect transfer of exposures from APAC to IWM 2 Client rate net of reference rate over average loan volume 3 From 2003 through 2017 for mortgages, from 2006 through 2017 for aviation finance, from 2001 through 2017 for export finance and from 2002 through 2017 for ship finance and lombard lending

48.4

51.1

2016 2017

+6%

~10 4.1 2.8

Gross loan revenue margin2

in basis points

Credit volume1

in CHF bn

Net new lending in CHF bn

Average annual loss rate through the cycle3

in basis points


Addressing financing needs of our wealth management clients

Entrepreneurial growth down 4%-points

Investment & asset allocation up 5%-points

Life-Style down 1%-point

Lombard lending2 Real Estate

Aviation/Yacht

finance

Ship

finance

Export finance

(ECA2 backed)

Client

needs

54% 57%

10% 12% 7% 6%

23% 20%

6% 5% Credit

volume

share1

End 2016 End 2017

1 2016 restated from prior disclosure to reflect transfer of exposures from APAC to IWM 2 Including structured lending of 1.2% and 1.8% at end 2016 and end 2017, respectively 3 Export Credit Agency

2.91

3.19

2016 2017

284

325

2016 2017

AuM per RM Adjusted net revenues

per RM

Targeted rebalancing and upgrading of talent base… …drives strong RM productivity improvements

520 470

Net: (50)

+30

(80)

+14% +10%

Note: Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in the Appendix 1 Including International Private Clients business area, which services lower wealth band clients, predominantly from Europe 2 Including RM not allocated to regional business areas


Quality hiring in targeted growth markets, leading to higher productivity

Europe1

Emerging

markets2

2016 Hires Leavers 2017

620 660

Net: +40

+160

(120)

in CHF mn Number of RM

Year-on-year revenue growth per RM

~70% of RMs with positive revenue growth

RMs by revenue growth

More systematic advice via advisory mandates and support of investment specialists

Continued implementation of House View

to optimize client portfolios’ risk/return profile for a large part of advisory relationships

Streamline processes front to back to

free up advisor time

Leverage cross-divisional capabilities to meet untapped client demand

Simplified

Amplify Activate

Re-energize

& consolidate


Continue to broaden individual producer contribution

2017 vs. 2016


Leveraging GM capabilities to meet untapped client demand

Currently low AuM penetration and supportive market environment

FX exposure an embedded, but

insufficiently addressed investment risk in many of our client's wealth structures

Clients seeking investment diversification

and yield-enhancement

Referrals of PB's entrepreneurial client

base into GM/ITS

Significant client demand capacity Successful ITS business model ITS capabilities

Note: ITS refers to International Trading Solutions

Structured

Solution

Foreign

Exchange

Financing

Solution

Bespoke

Transactions

CIO-led House View

Sophisticated client demand

Bespoke structured solutions

Global distribution channel

Syndicated risk offset in wholesale market

Win-win solutions for clients and the franchise,

generating high-quality fee income


Utilizing lending to transform local concentration into global diversification

Client profile and needs

UHNWIs in the region typically

have a majority of their net worth

invested locally

Low-return of local investments

fosters client to seek:

yield enhancement via…

asset diversification with…

global investment opportunities

...without divesting local holdings

Primary banker for Clients in the Region …

…providing bespoke solutions and delivery

Consolidation of local holdings with Credit Suisse

Monetization with our Structured Lending capabilities

Loan proceeds reinvested with Credit Suisse into global portfolio of diversified, best-in-class solutions (e.g. AM,

Structured Solutions)

Client subsequently transferred additional financial

investments from other institutions to Credit Suisse

One-stop destination offering both Local and International

Capabilities catering to Lending and Investment needs


Offering holistic bespoke solutions to UHNW clients

Yield enhancement

as lender against

single stock position

Discretionary and Advisory

Mandates, Opportunistic

Investment Solutions,

Family Governance,

Succession Planning

Debt capital market

support as bond issuance coordinator

Equity capital

market support as co-leading IPO

arranger

As Private Individual As Entrepreneur

Asset / Equity

side

Liability side

Holistic bespoke solutions

Client profile and needs

European based UHNW

client with several billion

of wealth

Entrepreneurial

activities in different

industries

One-stop-shop offering

360° integrated solutions

in wealth

management,

structuring, financing

and capital raising

360°

services


House View and ITS capabilities delivering value-add solutions for clients

An exclusive solution…

Protected Note on a

financial credit fund

Full capital protection

Full upside participation

Exclusively available for Credit Suisse clients

Research conviction call

(House View)

Financials offering the best

risk/return reward in credit market

ITS structuring capabilities

Distinctive fund-linked solution

made available to PB clients

through dedicated one-stop

organization

RM & IC engagement

Promoting and explaining the

solution in a House-View-linked

portfolio context

USD 490 mn AuM

(capped)

Allocated within 1 week

(over-subscribed)

More than 100 clients

Distributed in

8 EU locations

…delivered via

front-to-back collaboration… …generating significant impact

Note: ITS refers to International Trading Solutions RM refers to Relationship Manager IC refers to Investment Consultant


Appendix


International Wealth Management Strong profit progression and NNA growth

PB

1Q18 4Q17 1Q17 Δ 4Q17 Δ 1Q17

Adj. net margin in bps 42 30 32 12 10

Net new assets 5.5 2.7 4.7

Number of RM 1,130 1,130 1,120 0% 1%

Net loans 51 50 46 2% 12%

Net new assets AM 9.0 1.4 15.0

Risk-weighted assets 38 38 36 (2)% 5%

Leverage exposure 94 99 94 (5)% 0%

Key metrics in CHF bn

Key messages Adjusted key financials in CHF mn

1Q18 4Q17 1Q17 Δ 4Q17 Δ 1Q17

Net revenues 1,367 1,392 1,221 (2)% 12%

o/w Private Banking 1,006 923 883 9% 14%

o/w Asset Management 361 469 338 (23)% 7%

Provision for credit losses (1) 14 2

Total operating expenses 894 968 892 (8)% 0%

Pre-tax income 474 410 327 16% 45%

o/w Private Banking 382 275 262 39% 46%

o/w Asset Management 92 135 65 (32)% 42%

Cost/income ratio 65% 70% 73%

Return on regulatory capital† 35% 31% 26%

Significant progress in providing institutional-like solutions to higher net worth clients

Continued strict cost control resulting in flat expenses

PTI of CHF 474 mn with continued momentum towards 2018 target

RoRC† of 35% and cost/income ratio of 65%

Private Banking

PTI up 46% vs. 1Q17 and up 39% vs. 4Q17

14% higher revenues with increases across all major revenue categories, including notably higher client activity also reflecting proactive client advice in a more volatile environment

Successful house view implementation reflected by CHF 4.8 bn net mandate sales

NNA of CHF 5.5 bn at an annualized growth rate of 6% with strong inflows across emerging markets and Europe

Asset Management

PTI up 42% vs. 1Q17 and down from seasonally higher 4Q17

Continued growth in management fees (up 10%) at resilient recurring margins (down 1 bp)

NNA of CHF 9.0 bn, 2/3 from traditional and alternative investments

Note: All financial numbers presented and discussed are adjusted, unless otherwise stated. Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in this

presentation. All percentage changes and comparative descriptions refer to year on year measurements unless otherwise indicated † See Notes


International Wealth Management Private Banking and Asset Management

Private Banking Adjusted key financials in CHF mn Asset Management Adjusted key financials in CHF mn

Key metrics in CHF bn Key metrics in CHF bn

1Q18 4Q17 1Q17 Δ 4Q17 Δ 1Q17

Net interest income 388 380 342 2% 13%

Recurring commissions & fees 307 308 290 0% 6%

Transaction- and perf.-based 311 235 250 32% 24%

Other revenues 0 0 1

Net revenues 1,006 923 883 9% 14%

Provision for credit losses (1) 14 2

Total operating expenses 625 634 619 (1)% 1%

Pre-tax income 382 275 262 39% 46%


1Q18 4Q17 1Q17 Δ 4Q17 Δ 1Q17



Assets under management 370 367 336 1% 10%

Mandates penetration 31% 31% 29%

Net loans 51 50 46 2% 12%

Number of RM 1,130 1,130 1,120 0% 1%

1Q18 4Q17 1Q17 Δ 4Q17 Δ 1Q17

Management fees 267 263 243 2% 10%

Performance & placement rev. 27 159 40 (83)% (33)%

Investment & partnership inc. 67 47 55 43% 22%

Net revenues 361 469 338 (23)% 7%

Total operating expenses 269 334 273 (19)% (1)%

Pre-tax income 92 135 65 (32)% 42%


1Q18 4Q17 1Q17 Δ 4Q17 Δ 1Q17


Assets under management 391 386 367 1% 7%

Note: Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in this presentation

PB

4Q17 3Q17 4Q16 2017 2016


Net new assets 2.7 3.6 0.4 15.6 15.6

Number of RM 1,130 1,130 1,140 1,130 1,140

Net loans 50 48 45 50 45

Net new assets AM 1.4 1.1 (4.4) 20.3 5.6

Risk-weighted assets 38 37 35 38 35

Leverage exposure 99 93 94 99 94

Key metrics in CHF bn

Key messages Adjusted key financials in CHF mn

4Q17 3Q17 4Q16 2017 2016

Net revenues 1,392 1,262 1,245 5,139 4,644

o/w Private Banking 923 870 864 3,603 3,317

o/w Asset Management 469 392 381 1,536 1,327

Provision for credit losses 14 3 6 27 20

Total operating expenses 968 877 939 3,615 3,515

Pre-tax income 410 382 300 1,497 1,109

o/w Private Banking 275 272 192 1,116 822

o/w Asset Management 135 110 108 381 287

Cost/income ratio 70% 69% 75% 70% 76%

Return on regulatory capital† 31% 29% 24% 29% 23%

2017 PTI of CHF 1.5 bn vs. CHF 1.1 bn in 2016

Sustained strong PB NNA of CHF 15.6 bn, a growth rate of 5%; AM NNA increased to CHF 20.3 bn at a 6% growth rate

PB net margin improved to 32 bps in 2017

Private Banking

2017 PTI up 36% and 4Q17 PTI up 43% vs. 4Q16

Delivered operating leverage in 2017 on 9% higher revenues and stable expenses; cost increase vs. 3Q17 due to IT investments and higher regulatory and marketing costs

4Q17 and 2017 with increase across all major revenue lines, including significantly higher client activity

Successful house view performance reflected by CHF 15.3 bn net mandate sales in 2017; penetration up 3 percentage points to 31%

Asset Management

PTI up 33% vs. 2016 and up 25% vs. 4Q16

Continued double digit growth in management fees at resilient recurring margins

Strong investment performance during the year resulted in 105% higher performance fees vs. 4Q16 (up 66% vs. 2016); also resulted in higher performance-related compensation expenses

Note: All financial numbers presented and discussed are adjusted, unless otherwise stated. Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in this

presentation. All percentage changes and comparative descriptions refer to year on year measurements unless otherwise indicated † See Notes


International Wealth Management Strong finish to a successful year

Private Banking Adjusted key financials in CHF mn Asset Management Adjusted key financials in CHF mn

Key metrics in CHF bn Key metrics in CHF bn

4Q17 3Q17 4Q16 2017 2016

Net interest income 380 367 353 1,449 1,308

Recurring commissions & fees 308 300 277 1,200 1,093

Transaction- and perf.-based 235 203 235 953 922

Other revenues 0 0 (1) 1 (6)

Net revenues 923 870 864 3,603 3,317

Provision for credit losses 14 3 6 27 20


Pre-tax income 275 272 192 1,116 822


4Q17 3Q17 4Q16 2017 2016


Net new assets 2.7 3.6 0.4 15.6 15.6

Assets under management 367 355 323 367 323

Mandates penetration 31% 30% 28% 31% 28%

Net loans 50 48 45 50 45

Number of RM 1,130 1,130 1,140 1,130 1,140

4Q17 3Q17 4Q16 2017 2016

Management fees 283 278 228 1,084 891

Performance & placement rev. 173 63 108 310 208

Investment & partnership inc. 13 51 45 142 228

Net revenues 469 392 381 1,536 1,327


Pre-tax income 135 110 108 381 287


4Q17 3Q17 4Q16 2017 2016

Net new assets 1.4 1.1 (4.4) 20.3 5.6

Assets under management 386 376 322 386 322

Note: Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in this presentation


International Wealth Management Private Banking and Asset Management

Adjusted results are non-GAAP financial measures that exclude goodwill impairment and certain other revenues and expenses included in our

reported results. Management believes that adjusted results provide a useful presentation of our operating results for purposes of assessing our Group and divisional performance consistently over time, on a basis that excludes items that management does not consider representative of our

underlying performance. Provided below is a reconciliation of our adjusted results to the most directly comparable US GAAP measures.

IWM in CHF mn

1Q18 4Q17 3Q17 1Q17 4Q16 2017 2016 2015

Net revenues reported 1,403 1,364 1,262 1,221 1,299 5,111 4,698 4,552

Real estate gains - - - - (54) - (54) -

(Gains)/losses on business sales (36) 28 - - - 28 - (11)

Net revenues adjusted 1,367 1,392 1,262 1,221 1,245 5,139 4,644 4,541

Provision for credit losses (1) 14 3 2 6 27 20 5

Total operating expenses reported 920 1,010 904 928 962 3,733 3,557 3,824

Restructuring expenses (26) (11) (16) (36) (16) (70) (54) (36)

Major litigation provisions - (31) (11) - (7) (48) 12 (268)

Total operating expenses adjusted 894 968 877 892 939 3,615 3,515 3,520

Pre-tax income/(loss) reported 484 340 355 291 331 1,351 1,121 723

Total adjustments (10) 70 27 36 (31) 146 (12) 293

Pre-tax income/(loss) adjusted 474 410 382 327 300 1,497 1,109 1,016

in CHF mn Core

2017

Net revenues reported 21,786

Real estate gains -

(Gains)/losses on business sales 51

Net revenues adjusted 21,837

Provision for credit losses 178

Total operating expenses reported 17,680

Restructuring expenses (398)

Major litigation provisions (224)

Expenses related to business sales (8)

Total operating expenses adjusted 17,050

Pre-tax income/(loss) reported 3,928

Total adjustments 681

Pre-tax income/(loss) adjusted 4,609

IWM PB in CHF mn IWM AM in CHF mn

1Q18 4Q17 3Q17 1Q17 4Q16 2017 2016 1Q18 4Q17 3Q17 1Q17 4Q16 2017 2016 2015

Net revenues reported 1,043 923 870 883 918 3,603 3,371 360 441 392 338 381 1,508 1,327 1,328

Real estate gains - - - - (54) - (54) - - - - - - - -

(Gains)/losses on business sales (37) - - - - - - 1 28 - - - 28 - -

Net revenues adjusted 1,006 923 870 883 864 3,603 3,317 361 469 392 338 381 1,536 1,327 1,328

Provision for credit losses (1) 14 3 2 6 27 20 - - - - - - - -

Total operating expenses reported 643 673 615 642 684 2,552 2,510 277 337 289 286 278 1,181 1,047 1,146

Restructuring expenses (18) (8) (9) (23) (11) (44) (47) (8) (3) (7) (13) (5) (26) (7) (4)

Major litigation provisions - (31) (11) - (7) (48) 12 - - - - - - - -

Total operating expenses adjusted 625 634 595 619 666 2,460 2,475 269 334 282 273 273 1,155 1,040 1,142

Pre-tax income/(loss) reported 401 236 252 239 228 1,024 841 83 104 103 52 103 327 280 182

Total adjustments (19) 39 20 23 (36) 92 (19) 9 31 7 13 5 54 7 4

Pre-tax income/(loss) adjusted 382 275 272 262 192 1,116 822 92 135 110 65 108 381 287 186


Reconciliation of adjustment items

Throughout the presentation rounding differences may occur

Unless otherwise noted, all CET1 ratio, Tier-1 leverage ratio, risk-weighted assets and leverage exposure figures shown in this presentation are as

of the end of the respective period and on a “look-through” basis

Gross and net margins are shown in basis points

Gross margin = adj. net revenues annualized / average AuM; net margin = adj. pre-tax income annualized / average AuM

Mandates penetration reflects advisory and discretionary mandates as percentage of total AuM

General notes

† Regulatory capital is calculated as the worst of 10% of RWA and 3.5% of leverage exposure. Return on regulatory capital is calculated using (adjusted)

income / (loss) after tax and assumes a tax rate of 30% and capital allocated based on the worst of 10% of average RWA and 3.5% of average leverage

exposure. Adjusted return on regulatory capital is calculated using adjusted results, applying the same methodology to calculate return on regulatory capital.

Specific notes

Adj. = Adjusted; AM = Asset Management; AuM = Assets under Management; bps = basis points; CAGR = Compound Annual Growth Rate;

FINMA = Swiss Financial Market Supervisory Authority; FX = Foreign Exchange; IWM = International Wealth Management; NNA = Net new assets;

PB = Private Banking; PTI = Pre-tax income; RM = Relationship Manager(s); RWA = Risk-weighted assets; UHNWI = Ultra High Net Worth

Individuals; WM = Wealth Management

Abbreviations


Notes

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