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
December 04, 2008
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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Accelerated implementation of
strategic plan
Zurich
December 4, 2008
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, 2007 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 2008.
Slide 2
Accelerated implementation of strategic plan
Positions Credit Suisse strongly with reduced risk,
lower costs and strong capital to enable us to weather the continuing market
challenges, capture opportunities, and prosper when markets improve
CHF 2 billion cost reduction, including a headcount reduction
of 5,300, or 11%, and an additional reduction of 1,400 contractors
Accelerated repositioning of the Investment Banking business
portfolio with a reduction in risk, volatility and costs
Continued commitment to integrated business model;
growth of Private Banking globally and Swiss businesses
Slide 3
Continue to invest in the growth of Private Banking globally
Continue to invest judiciously in the growth of Private Banking business globally
and the Swiss businesses
Build on progress made to date
Strengthened international presence by hiring 370 relationship managers in
Wealth Management as of the end-November; exceeding the target of 330 for
the year
Opened 18 new locations and entered 4 new markets since January 2007
Bank-wide efficiency measures also targeted at improving efficiency in
Private Banking, positioning the business for further growth in 2009
Slide 4
Repositioning the Investment Bank
Weaker macroeconomic trends leading to
volatile markets
More conservative behavior from market
participants leading to lower financial leverage
and reduced demand for complex products
Reduce volatility and improve capital
efficiency
Focus on client and flow-based businesses
(e.g. building on strength in algorithmic
trading, cash equities, prime services, rates,
FX and high grade credit)
Cuts in origination cost base and risk limits
for complex credit and structured products
Reduction in risk capital usage, including exit
from certain proprietary and principal trading
activities and aligning lending with customer
franchises
Investment Banking will remain a valuable
contributor to the integrated bank with lower
volatility and attractive risk returns
Challenging market environment…
Credit Suisse strategic response
Investor preference for strong counterparties
Increased demand for exchange-based
products – structural growth in electronic
trading across products
Positive outlook for Rates and FX given fiscal
and macro trends
Fewer competitors and better pricing
…but some positive trends for Credit Suisse
Slide 5
2.0
3.7
2.0
0.5
16.4
0.4
9.4
11.5
14.4
10.9
15.7
12.4
Repositioning the Investment Bank:
Robust earnings and returns over the cycle with lower volatility
Investment Banking revenue (USD bn)
2005
2006
2007
YTD Nov
2008
Investment Banking pre-tax income (USD bn)
Proforma analysis of repositioned
Investment Bank demonstrates robust
revenues and earnings, and lower volatility
of this business model over the last
four years
Average margins and returns should be
higher through the cycle
Significantly lower risk capital usage in
Investment Bank resulting in a more
balanced capital allocation across
Credit Suisse
Proforma
As reported
2005
2006
2007
YTD Nov
2008
Proforma
Slide 6
Proforma risk-weighted assets (USD bn)
99
129
161
135
89
72
52
35
78
63
236
230
214
193
170
135
Risk reduction in Investment Banking
On a consistent methodology basis, risk-
weighted assets (RWAs) expected to decline to
USD 170 bn at year-end 2008, and
USD 135 bn by year-end 2009
Underlying 1-day Value-at-Risk (VaR) declined
33% vs. 3Q08 average
(quarter-on-quarter)
55% vs. 2007 average
(year-on-year)
Investment Banking RWAs (period end in USD bn)
2007
1Q08
2Q08
3Q08
2009E
Continued risk reduction
2008E
Investment Banking average 1-Day VaR
2006
2007
1Q08
2Q08
3Q08
Nov 30
96
174
186
158
124
1) VaR on November 30, 2008
1)
Positioning
Dataset /
methodology effect
(Period end in USD m)
(43%)
(12%)
(21%)
Slide 7
Adjusting capacity
Reduction in headcount by 5,300, or 11%
plus an additional reduction of 1,400
contractors
CHF 2 billion cost reduction, representing 9%
of the bank’s 9M08 annualized cost base, most
of which is to be implemented by mid-2009
Includes additional reductions in compensation
and non-compensation expenses
Approx. 2/3 of total headcount reduction relates
to Investment Banking, including Shared
Services personnel
Year-end 2009 headcount target of 17,500 for
Investment Banking
Headcount Credit Suisse (period end)
Headcount Investment Banking (period end)
Efficiency improvements
2005
2006
3Q08
2009E
2005
2006
2007
3Q08
Nearly 50% of
headcount reduction
by year-end, with
remainder sche-
duled during 1H09
2007
17,300
18,700
21,300
17,500
20,600
44,600
44,900
50,300
48,100
Slide 8
4Q08 results update
Net loss of approximately CHF 3 bn as of end-November, reflecting the impact
of adverse market conditions in the quarter and costs associated with the risk
reduction program
Modest net profit for Credit Suisse in November
Good operating performance and solid asset inflows in Private Banking
Deposit base and funding remains strong
Strong capital position with tier 1 ratio around 13% expected at year-end 2008
Costs associated with the strategic measures of approx. CHF 900 m will be
taken in 4Q08 and are not reflected in the end-November net loss
Slide 9
Accelerated implementation of strategic plan
Positions Credit Suisse strongly with reduced risk,
lower costs and strong capital to enable us to weather the continuing market
challenges, capture opportunities, and prosper when markets improve
CHF 2 billion cost reduction, including a headcount reduction
of 5,300, or 11%, and an additional reduction of 1,400 contractors
Accelerated repositioning of the Investment Banking business
portfolio with a reduction in risk, volatility and costs
Continued commitment to integrated business model;
growth of Private Banking globally and Swiss businesses
Slide 10
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.
|
| CREDIT SUISSE GROUP AG and CREDIT SUISSE |
|
| (Registrant) |
|
|
|
| By: | /s/ Urs Rohner |
|
| (Signature)* |
|
| General Counsel |
|
| Credit Suisse Group AG and Credit Suisse |
Date: December 04, 2008 |
|
|
|
| /s/ Charles Naylor |
|
| Head of Corporate Communications |
*Print the name and title under the signature of the signing officer. |
| Credit Suisse Group AG and Credit Suisse |