UBS Global Financial Services Conference
Paul Calello, CEO, Investment Bank
New YorkMay 12, 2009
Slide 1
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 2
Credit Suisse Overview
Investment Bank: Execution of client-focused, capital-efficient strategy
Summary
Slide 3
Strong 1Q09 results
Strategy and disciplined capital and risk approach delivers strong absolute results with solid return to shareholders
! Net income of CHF 2.0 bn and return on equity of 22.6% in continuing challenging markets
! CHF 11.4 bn net new assets in Private Banking with strong inflows in international and ourSwiss business
! Disciplined capital management and reduced risk profile
! Further strengthening of tier 1 capital ratio to 14.1%
Strong position with clear and differentiated strategic direction
! Private Banking: Strong and resilient Swiss franchise and continued international expansion
! Investment Banking: Substantial progress executing the client-focused and capital-efficient
strategy
! Asset Management: Considerable progress towards focused and aligned business strategy
! Positioned well for difficult markets, but also to benefit from improvement in the environment
Slide 4
860 830
699650 646
4
1)1)
389
5462)
Wealth Management with resilient results in challenging markets
Pre-tax incomeCHF m
1Q08 2Q08 3Q08
Pre-tax income margin in %37.2 36.4 32.7 31.7 28.4
4Q08 1Q09
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
2)
Net new assets (NNA)CHF bn
10.6
12.612.6
9.0
Annualized NNA growth on AuM in %7.5 7.3 6.4 5.0 5.6
2006 2007 1Q092008
10.7
2005Quarterly average
Slide 5
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 & performancefees and carried interest
! Stabilization of asset base in MACS and AI in 1Q09
! Average asset base reducedby 27% YoY
Other
Based on asset management fees for MACS, AI and JVs
517
412 406169
110 98
! Asset management fees down by 19% YoY
! Market performance-related revenue items at historic lows
! Stable recurring gross margin
AI = alternative investment strategiesMACS = multi asset class solutions
387351
314
1Q08 4Q08 1Q09
32 59(2)
Slide 6
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 10.210.4
13.314.1
= foreign exchange impacts and methodology changes
301 302 308257 261
324
235
Slide 7
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
5927
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 ofCHF 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 bnmortgages and CDO 1)
Commercial mortgages 7.0 bn
Exposure at end of 1Q09
CHF 8.0 bn
Slide 8
Maintained strong funding structure
1,156 1,156
Assets1Q09
Capital & liabilities1Q09
Reverse 289repo
Trading 364assets
Loans 229
Other 186
Repo 284
Trading liab.161
Short-term1) 76Long-term 157debt
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 6 bn of unsecured debt � one of a handful of non-government guaranteed placements
Cash 1) 88
1) Includes due from/to banks
Slide 9
Credit Suisse Overview
Investment Bank: Execution of client-focused, capital-efficient strategy
Summary
Slide 10
Repositioned businesses Exit businesses
! Emerging Markets � maintain leading business but with more limited risk/credit provision
! US Leveraged Finance �maintain 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
Equ
ities
Fixe
d In
com
eA
dvis
ory
Develop existing strongmarket 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
Slide 11
Grow client andflow-based businesses
! Revenues from key client businesses increased to CHF 6.3 bn fromCHF 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 bn1)
! 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 comparedto a loss of CHF 2.3 bn in 4Q08
1) Excluding methodology changes
Slide 12
Significant revenues from ongoing businesses
Investment Banking 1Q09 revenuesCHF 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 1)
Ongoing
0.7 0.6
Slide 13
Improved margins and market share across many products
ProductCredit Suisse
Revenue impactCredit Suisse
Market Share (%)Industry
Volume ($) Industry
Margin (%)
Fixe
d in
com
eIn
vest
men
tB
anki
ng
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
Equ
ity
High grade trading
Slide 14
Banks
! Increased focus from regulators, investors
" Top 3 position in prime brokerage
! Emphasis on liquidity and risk-weighting
! Significant account base turnover
! Distressed residential assets sold or restructured " Insight about trading flows and trends via market-leading flow-trading platforms
" Coverage continuity and focus � no distractions
" Strong market share position in Rates, Mortgages, Credit
" Prime Services� suite of consultative services, including with One Bank coordination with Private Banking
! Intense demand for capital, balance sheet
! Focus on absolute performance
" Strong multi-asset coverage and macro idea generation
Strong market share growth with key clients
Hedge Funds
Market Trends Affecting Clients Credit Suisse�s Ability to Deliver
! Reduction of staffing and operating expense
" Coordinated cross-Securities client management and resource provision to key clients
! Performance pressures
! Managing market volatility, execution costs
! Merging funds, managing asset mix shift
" Top-rated idea generation (Eq. Research, Economics, HOLT)
" Market-leading execution expertise: AES, high-touch
" Top 3 position with many of largest fund managers
Fund Managers
" Lead or co-prime relationship with over two-thirds of top hedge funds
! Desire for capital introduction and AuM
" Size and scale to deliver resources! Industry consolidation and reorganization
Slide 15
Dislocated assets
Executing capital-efficient strategy for Investment BankDirectional credit trading
4Q07
(88)%
2Q08 4Q08 1Q09
(31)% (39)%
(86)%
Basis risksSelected 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 16
Priorities Full-year 2009 objectives
Grow client andflow-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 17
Credit Suisse Overview
Investment Bank: Execution of client-focused, capital-efficient strategy
Summary
Slide 18
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 19
Questions & Answers
Slide 20
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