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
April 27, 2022
Commission File Number 001-15244
Credit Suisse Group AG
(Translation of registrant’s name into English)
Paradeplatz 8, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number 001-33434
Credit Suisse AG
(Translation of registrant’s name into English)
Paradeplatz 8, 8001 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.
Form 20-F 
Form 40-F 
Form 40-F Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
This report includes the media release and the slides for the presentation to investors in connection with the 1Q22 results.
 Media Release Zurich, April 27, 2022 |
Ad hoc announcement pursuant to article 53 LR
Credit Suisse reports net revenues of CHF 4.4 bn and pre-tax loss of CHF 428 mn along with a CET1 ratio of 13.8% in 1Q22
“The first quarter of 2022 has been marked by volatile market conditions and client risk aversion. These conditions, together with the impact from our reduction in risk appetite in 2021 as we took decisive actions to strengthen our overall risk and controls foundation, had an adverse impact on our net revenues. Our operating expenses were higher year on year, driven in particular by higher previously reported litigation expenses of CHF 703 mn for the quarter as we continued our proactive approach to resolving litigation matters. Against this backdrop, we reported a pre-tax loss for the quarter; however, on an adjusted* basis, we reported a pre-tax income of CHF 300 mn, including the adverse impact of CHF 206 mn of losses related to Russia’s invasion of Ukraine. 2022 is a transition year, and our clear focus remains on the disciplined execution of our new Group strategy as announced in November 2021: strengthening our core, simplifying our organization and investing for growth. We went live with our new structure in January; have reduced the allocated capital in the IB by USD 2.5 bn, 82% of our ambition of more than USD 3.0 bn; and have made significant progress on various other strategic priorities. I am confident that we are well positioned to build a stronger and client-centric bank that puts risk management at the core to deliver sustainable growth and value for investors, clients and colleagues.” Thomas Gottstein, Chief Executive Officer of Credit Suisse Group AG |
Credit Suisse Group results for 1Q22
Reported (CHF mn) | 1Q22 | 4Q21 | 1Q21 | Δ4Q21 | Δ1Q21 |
| Net revenues | 4,412 | 4,582 | 7,574 | (4)% | (42)% |
| Provision for credit losses | (110) | (20) | 4,394 | - | - |
| Total operating expenses | 4,950 | 6,266 | 3,937 | (21)% | 26% |
| Pre-tax income/(loss) | (428) | (1,664) | (757) | - | - |
| Effective tax rate | 35% | (25)% | 69% | - | - |
| Net income/(loss) attributable to shareholders | (273) | (2,085) | (252) | - | - |
| Return on tangible equity | (2.6)% | (20.9)% | (2.6)% | - | - |
| Cost/income ratio | 112% | 137% | 52% | - | - |
| Net New Assets (NNA) in CHF bn | 7.9 | 1.6 | 28.4 | - | (72)% |
| Assets under Management (AuM) in CHF bn | 1,555 | 1,614 | 1,596 | (4)% | (3)% |
Adjusted* (CHF mn) | 1Q22 | 4Q21 | 1Q21 | Δ1Q21 | |
| Net revenues | 4,582 | 4,384 | 7,430 | 4% | (38)% |
| Provision for credit losses | 45 | (15) | (36) | - | - |
| Total operating expenses | 4,237 | 4,071 | 3,870 | 4% | 9% |
| Pre-tax income/(loss) | 300 | 328 | 3,596 | (8)% | (92)% |
| o/w Russia-related | (206) |
Capital ratios for 1Q22
 |  |  |
| 13.8% | 4.3% | 6.1% |
| CET1 ratio vs. 12.2% in 1Q21 | CET1 leverage ratio vs. 3.8% in 1Q21 | Tier 1 leverage ratio vs. 5.4% in 1Q21 |
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Media Release Zurich, April 27, 2022 |
Summary of 1Q22 performance
For our first quarter of 2022 we saw net revenues decrease by 42% year on year, driven by a decline in Investment Bank (IB) net revenues, down 51%, on a USD basis; a decline in Wealth Management (WM) net revenues, down 44%; as well as a decline in Asset Management (AM) net revenues, down 10%. These were only slightly offset by a revenue increase in Swiss Bank (SB) for the quarter, up 8% year on year. Reported net revenues included real estate gains of CHF 164 mn, offset by a loss of CHF 353 mn related to our equity investment in Allfunds Group and CHF 148 mn from Russia-related impacts. We had adjusted* net revenues of CHF 4.6 bn, down 38% year on year. The economic environment and market conditions throughout the quarter placed challenges on a number of our business areas with changes in interest rate expectations, inflationary pressures as well as geopolitical tensions impacting wider market conditions and business activity. We recorded a net release of provision for credit losses of CHF 110 mn for 1Q22, including a CHF 155 mn release related to an assessment of the future recoverability of receivables related to Archegos, which was partly offset by CHF 58 mn of provision for credit losses related to Russia’s invasion of Ukraine. Reported operating expenses of CHF 5.0 bn were up 26% year on year primarily driven by litigation provisions of CHF 703 mn, of which major litigation provisions were CHF 653 mn, and increased cash accruals for compensation due to normalized deferral levels of CHF 214 mn. We had CHF 152 mn of select strategic investments such as the centralization of our procurement processes, investments in Group-wide infrastructure, as well as risk and compliance. Our adjusted* | operating expenses for 1Q22 of CHF 4.2 bn were up 9%, primarily driven by the increased cash accruals for compensation due to normalized deferral levels. We reported a pre-tax loss of CHF 428 mn compared to a pre-tax loss of CHF 757 mn in 1Q21. Our adjusted* pre-tax income for 1Q22 was CHF 300 mn, down 92% year on year, including Russia-related losses of CHF 206 mn, and compared to an exceptionally strong 1Q21, primarily reflecting reduced client activity and capital markets issuances in volatile market conditions, as well as reflecting the cumulative reduction in risk appetite throughout 2021, increased cash accruals for compensation due to normalized deferral levels and the impact of hedging volatility due to flattening yield curve on Treasury books. We reported a net loss attributable to shareholders of CHF 273 mn, compared to net loss attributable to shareholders of CHF 252 mn in 1Q21. We had Group NNA of CHF 7.9 bn in 1Q22, compared to CHF 28.4 bn in 1Q21. Our global wealth management NNA for 1Q22, which includes our Wealth Management (WM) division and Private Banking Switzerland, were CHF 4.6 bn; we recorded positive NNA across all regions in WM despite volatile markets. The contributions on a regional level from WM and Private Banking Switzerland were CHF 2.1 bn in Switzerland, CHF 0.6 bn in EMEA, CHF 1.8 bn in APAC and CHF 0.1 bn in Americas. Swiss Bank’s NNA of CHF 6.0 bn was largely driven by its institutional clients business. We maintained a resilient capital base with our CET1 capital ratio at 13.8%, our CET1 leverage ratio at 4.3% and our Tier 1 leverage ratio at 6.1% at the end of 1Q22. |
Net revenues for 1Q22 and 1Q21 by region
 | Switzerland EMEA Asia Pacific Americas |  | | Switzerland EMEA Asia Pacific Americas |  | |
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Media Release Zurich, April 27, 2022 |
| Outlook |
The combination of the current geopolitical situation following Russia’s invasion of Ukraine and the significant monetary tightening initiated by several of the major central banks in response to inflation concerns have resulted in heightened volatility and client risk aversion so far this year. While the Swiss Bank delivered a resilient performance and Equity Derivatives, M&A and Securitized Products had solid performances in 1Q22, overall, this market environment, in combination with the cumulative effect of our newly defined risk appetite as executed during 2021, has led to an adverse impact on client activity in our Wealth Management division as well as a reduction in the level of capital markets issuances within our Investment Bank. Furthermore, the Investment Bank has relatively limited exposure to business areas, such as interest rate trading, which have benefited from these developments. We would expect these market conditions to persist in the coming months. In our Wealth Management business, while revenues should benefit later in the year from the higher interest rate environment, client risk appetite may remain subdued. Within the Investment Bank, while our M&A advisory pipeline is up both sequentially and on a year on year basis, and our leveraged finance business remains active, our ability to complete this client business is dependent on market conditions. Although the risk profile of our business is improving, our revenues will be adversely impacted by the cumulative reduction in our risk appetite in 2021 and by the exit from the majority of our Prime Service business. With regard to expenses, while variable compensation is expected to be subdued given the market environment, we expect increased cash accruals for compensation due to normalized deferral levels. Furthermore, we expect to see continued significant remediation spend in Risk, Compliance and Infrastructure. We continue to execute our expense saving programs and our outsourcing of our procurement function should generate significant savings; however, the bulk of the benefits from this broader program are only expected to be achieved in 2023. As previously highlighted at our Investor Day on November 4, 2021, the year 2022 will be one of transition for Credit Suisse. The benefits from the strategic capital reallocation towards our core businesses and the structural cost savings from the reorganization measures that we are currently implementing should largely materialize from 2023 onwards. In this respect, we are focused on disciplined execution of our strategy with a clear focus on strengthening and simplifying our integrated model and investing in sustainable growth, while placing risk management at the very core of the bank. |
Select Group strategy execution measures and progress We are focused on refining and reinvigorating our franchise in order to drive forward our vision for Credit Suisse. This strategic vision builds on our considerable strength and is expected to support our path to long-term, sustainable growth. Our strategy has addressed fragmentation with the creation of an integrated Wealth Management and global Investment Bank division. We are making clear choices and plan to make significant investments in businesses and markets where we believe we have sustainable, competitive advantages. We plan to shift around CHF 3 bn of capital into Wealth Management over the next three years and invest in all our core businesses. Over the course of 1Q22 we have achieved the following relating to our Group strategy: ◾ Achieved 82%, or USD 2.5 bn, of our ambition to release more than USD 3 bn of capital allocated to IB to shift into our core businesses ◾ Launched an outsourcing agreement on April 1, 2022 with ChainIQ, and are on track to deliver centralized procurement | savings, as well as stepping up synergies from unified operating platforms and divisions. This puts us on our way toward meeting our ambition of CHF 1 bn to 1.5 bn in structural cost savings per annum by 2024 to invest in growth initiatives ◾ Reinforced our integrated model and driving an increase in collaboration across divisions by launching Private & Growth Markets in the IB, a joint venture with WM, and refocusing our efforts on our GTS platform to reinforce collaboration between IB and WM ◾ In global wealth management, which includes our WM division and Private Banking in Switzerland, we achieved a mandate penetration level near that of our medium-term ambition of between 33% and 35%; as of the end 1Q22, our mandate penetration stands at 33%, compared to 32% at the end of 4Q21 ◾ In the Investment Bank, we made considerable progress toward our ambition of exiting Prime Services1 by the end of 2022. We have reduced Prime balances by 84% since 1Q21 ◾ In our Swiss Bank, we are more than halfway toward our goal of 200,000 clients for our digital offering CSX by year-end 2022, which is currently used by approximately 125,000 clients; this reflects the ongoing strength in our home market |
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Media Release Zurich, April 27, 2022 |
Supply Chain Finance Funds Matter Update
Credit Suisse Asset Management (CSAM) continues to pursue all available avenues for recovery of the funds on behalf of our investors; this remains a priority. We continue to update stakeholders via publicly disclosed Q&As and portfolio details, the latest of which was published on April 13, 2022.
As of March 31, 2022, the focus areas account for approximately USD 2.18 bn. Regarding GFG Australia, the total cash amount returned via monthly payments, as well as the initial payment, since October 2021 is approximately AUD 204 mn (USD 148 mn)2. Discussions with GFG Alliance and Bluestone regarding refinancing and restructuring of other assets are ongoing. Furthermore, we have, as of March 31, 2022, filed 14 insurance claims through the filing process with Greensill Bank. These 14 claims have corresponding CSAM total underlying exposure of approximately USD 2.0 bn.
Impact of Russia’s invasion of Ukraine
We actively managed our exposure to Russia’s invasion of Ukraine across our businesses. We have substantially reduced our Russia net credit exposure3 to CHF 373 mn, a 56% reduction since the end of 2021. Our net credit exposure4 to Russian financial institutions is down 67% since the end of 2021 and we are continuing to reduce our exposures. Our corporate and individual clients are highly collateralized with non-Russian collateral and limited losses.
In 1Q22, we had losses of CHF 206 mn related to Russia’s invasion of Ukraine which negatively impacted our results. This includes CHF 148 mn from trading and fair value losses and CHF 58 mn in provision for credit losses, primarily reflecting non-specific provisions of CHF 44 mn for expected credit losses due to increased credit risk.
Additionally, the net asset value of our Russian subsidiaries is at CHF 0.2 bn, down CHF 16 mn compared to the end of 4Q21.
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Media Release Zurich, April 27, 2022 |
Divisional summaries
| Wealth Management (WM) | ||
 Adjusted* pre-tax income QoQ in CHF million | 1Q22 On an adjusted* basis, WM’s pre-tax income fell to CHF 212 mn, down 74% year on year, however up when compared to 4Q21. The reduction in reported pre-tax income reflects certain headwinds, including a loss on the equity investment in Allfunds Group of CHF 353 mn, litigation provisions of CHF 237 mn, an adverse Russia-related impact of approximately CHF 99 mn, including credit provisions of CHF 40 mn. The year on year decrease in adjusted* pre-tax income was driven by lower adjusted* net revenues, down 22%, mainly due to lower transaction activity, as well as higher adjusted* operating expenses, up 16%, reflecting the increased cash accruals for compensation due to normalized deferral levels, technology investments, higher Group-wide risk and compliance costs, and higher relationship manager headcount. In 1Q22, we made progress on laying the foundations for an integrated Wealth Management division by implementing the new organizational structure to execute on our long-term vision for the division. This included the launch of new strategic capabilities including the Financing & Products group, Investment Solutions and Sustainability as well as Client Segment Management. WM had reported net revenues of CHF 1.2 bn, down 44% year on year. The decline in reported net revenues was driven by weaker GTS revenues, lower brokerage and product issuance fees and the CHF 353 mn loss on the equity investment in Allfunds Group, partially offset by gains on real estate sales of CHF 25 mn. Results also included mark-to-market losses5 in APAC Financing of CHF 34 mn, as well as negative revenues in connection with the SCFF fee waiver program of CHF 26 mn. Adjusted* net revenues of CHF 1.5 bn, were down 22% driven by lower transaction- and performance-based revenues, down 38%, due to a strong comparable in 1Q21 and lower GTS revenues and lower brokerage and product issuance fees, including structured product revenues, due to challenging market conditions in 1Q22. We also saw lower net interest income, down 8%, and lower recurring commissions and fees, down 5%, primarily due to lower lending volumes. WM had NNA of CHF 4.8 bn for the quarter with inflows mainly in the Swiss ultra-high net worth business and Asia Pacific as well as our external asset manager business. WM recorded AuM of CHF 707 bn in 1Q22, this compares to CHF 757 bn in 1Q21 and CHF 743 bn in 4Q21, reflecting unfavorable markets movements and structural effects, including certain de-risking measures and CHF 10.4 bn related to sanctions imposed in connection with Russia’s invasion of Ukraine, partially offset by favorable foreign exchange-related movements and net new assets. Additionally, WM had client business volume of CHF 1.0 trn, down 9% year on year. |
Media Release Zurich, April 27, 2022 |
| Investment Bank (IB) | ||
 Adjusted* pre-tax income/loss QoQ in USD million | 1Q22 On an adjusted* basis the IB posted a pre-tax loss of USD 55 mn, down from pre-tax income of USD 2.4 bn in 1Q21, reflecting lower client activity, the impact of reduced capital usage as we de-risked our franchise, and Russia-related losses of USD 97 mn in GTS from trading and fair value losses. Reported pre-tax income included real estate gains of USD 57 mn and an Archegos impact of USD 174 mn6. Total reported operating expenses were up 6% and adjusted* operating expenses increased by 6% year on year primarily driven by increased cash accruals for compensation due to normalized deferral levels and higher Group-wide technology, risk and compliance expenses. The division’s reported net revenues were USD 2.1 bn for 1Q22, down 51% year on year due to a strong comparable in 1Q21, substantially reduced capital markets revenues, normalized fixed income activity, Russia-related losses as well as reduced capital usage. Capital markets revenues decreased 66% year on year, reflecting a significant slowdown in equity capital markets issuances, due to elevated volatility compared to more favorable markets in 1Q21, and a reduced risk appetite in our leveraged finance business. Despite this decline, we gained share of wallet quarter on quarter7. We saw a reduction in our Advisory revenues, down 14% year on year, due to reduced M&A fees. Revenues in our Fixed Income Sales & Trading business were down 50% year on year, primarily reflecting more normalized conditions within our Securitized Products business compared to a robust 1Q21, although results were significantly higher than historical levels. Equity Sales & Trading revenues declined by 47% year on year due to our announced exit8 from prime services, lower equity derivatives trading results, as well as lower Cash trading volumes. GTS revenues declined year on year compared to a record 1Q21, due to the Russia-related losses as well as our strategy to reduce risk in Emerging Markets. However, we continued to see a resilient performance in Equity Derivatives, even though lower year on year due to a comparably strong 1Q21, given increased volatility through the quarter. Risk Weighted Assets declined 21% year on year and leverage exposure declined 18% primarily due to reductions in Prime Services. We have reduced allocated capital by USD 2.5 bn since the end of 2020 and remain on track to achieve our ambition of more than USD 3 bn capital release by 2022. |
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Media Release Zurich, April 27, 2022 |
| Swiss Bank (SB) | ||
 Adjusted* pre-tax income QoQ in CHF million | 1Q22 Swiss Bank had resilient results in 1Q22 despite higher compensation expenses. SB had an adjusted* pre-tax income of CHF 385 mn, down 8% year on year, mainly due to higher adjusted* operating expenses, up 5%, from increased cash accruals for compensation due to normalized deferral levels, targeted investments in the business and higher Group-wide technology, risk and compliance costs. Provision for credit losses were up compared to 4Q21, with an impact of CHF 14 mn related to Russia. SB’s reported net revenues were CHF 1.1 bn, up 8% year on year; these included real estate sale gains of CHF 84 mn in 1Q22. The division’s adjusted* net revenues were stable. Recurring commissions and fees were up 7% year on year mainly driven by higher revenues from our investment in Swisscard and also reflected higher AuM levels. However, these were offset by lower net interest income, down 3%, and lower transaction-based revenues, down 4%, due to lower investment banking collaboration revenues. SB had NNA of CHF 6.0 bn entirely driven by our institutional clients business. The division’s AuM as of the end of 1Q22 was CHF 582 bn, up from CHF 571 bn at the end of 1Q21 and compared to CHF 598 bn at the end of 4Q21. SB had client business volume of CHF 871 bn in 1Q22, up 2% year on year. Net loans were down 1% compared to 1Q21, however, they were up 1% compared to 4Q21, driven by our corporate banking and institutional clients businesses. |
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Media Release Zurich, April 27, 2022 |
| Asset Management (AM) | ||
 Adjusted* pre-tax income QoQ in CHF million | 1Q22 AM had an adjusted* pre-tax income of CHF 51 mn for 1Q22, down 62% year on year, driven by a combination of lower adjusted* net revenue, down 10%, and, higher adjusted* operating expenses, up 15%. Adjusted* operating expenses were up primarily due to increased cash accruals for compensation due to normalized deferral levels, expenses related to the SCFF matter and higher Group-wide technology, risk and compliance costs. AM’s reported net revenues were down 10% year on year at CHF 361 mn while adjusted* net revenues were at CHF 359 mn, down 10%. The decrease in revenues was due to lower performance, transaction and placement revenues, down 52% year on year, driven by investment-related losses complemented by lower performance and transaction fees, as well as lower recurring management fees, down 3%, due to increased investor bias towards passive products and continued margin pressure. These declines were partly offset by higher investment and partnership income, up 48%, mainly due to higher investment-related gains. AM had net asset outflows of CHF 0.6 bn for the quarter, mainly driven by outflows from Fixed Income and Credit, partially offset by inflows into Index Solutions and an emerging markets joint venture. AM had AuM of CHF 462 bn at the end of 1Q22, down 3% compared to the previous quarter, primarily due to unfavorable market performance, but up 1% year on year. |
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Media Release Zurich, April 27, 2022 |
Progress on our sustainability ambitions and strategy
Credit Suisse continued to focus on its sustainability strategy, driving activity across divisions and functions in 1Q22. The bank continues to emphasize the importance of sustainability as a core element of its value proposition for its clients, shareholders, employees and society. Summary of recent sustainability-related activity: ◾ 1Q22 Sustainable AuM of CHF 144 bn9, up 22% year on year resulting in 9.3% Sustainable AuM penetration as of March 31, 202210 ◾ Credit Suisse Asset Management has joined the Net Zero Asset Manager’s initiative, on March 22, further supporting the Group’s commitment to achieve net zero across our supply chain, operations and finance activities by 2050 ◾ Won the 2022 Environmental Finance, ‘Award for innovation – bond structure (sustainability bond)’ and the ‘Sustainability bond of the year – sovereign’ award ◾ The announcement of enhanced sector policy restrictions to the financing of climate-sensitive sectors, including oil sands, deep-sea mining, Arctic oil and gas and palm oil. Details are available in our external summary of Credit Suisse’s Sector Policies and Guidelines | ◾ The publication of the Credit Suisse 2021 Sustainability Report which highlights the important sustainability progress achieved during the calendar year. This included enhanced TCFD disclosure and reporting against core WEF IBC Stakeholder Capitalism Metrics for the first time ◾ Furthermore, in support of our Group strategy, with a clear focus on investing for growth, Emma Crystal became Chief Sustainability Officer for the Group, on April 1, 2022. Reporting directly into the Group CEO, her mandate includes responsibility for our global sustainability strategy and partnering with the four global business divisions, the four geographic regions and our corporate functions, to deliver on our existing sustainability and ESG ambitions |
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Media Release Zurich, April 27, 2022 |
Kinner Lakhani, Investor Relations, Credit Suisse
Tel: +41 44 333 71 49
Email: investor.relations@credit-suisse.com
Dominik von Arx, Corporate Communications, Credit Suisse
Tel: +41 844 33 88 44
Email: media.relations@credit-suisse.com
The Financial Report and Presentation Slides for 1Q22
are available to download from 06:45 CEST today at:
www.credit-suisse.com/results
Presentation of 1Q22 results
Wednesday, April 27, 2022
| Event | Analyst Call | Media Call on 1Q22 Results |
| Time | 08:15 CEST (Zurich) 07:15 BST (London) 02:15 EDT (New York) | 10:30 CEST (Zurich) 09:30 BST (London) 04:30 EDT (New York) |
| Language | English | English |
| Access | Switzerland +41 44 580 48 67 UK +44 (0) 203 057 6528 USA +1 866 276 8933 Reference: Credit Suisse Analysts and Investors Call Conference ID: 8392879 Please dial in 10 minutes before the start of the call. When dialing in please enter the Passcode/Conference ID and leave your first, last name and company name after the tone. You will be joined automatically to the conference. Webcast link here. | Switzerland +41 44 580 48 67 UK +44 (0) 203 057 6528 USA +1 866 276 8933 Reference: Credit Suisse Media Call Conference ID: 9879055 Please dial in 10 minutes before the start of the call. When dialing in please enter the Passcode/Conference ID and leave your first, last name and company name after the tone. You will be joined automatically to the conference. Webcast link here. |
| Q&A Session | Following the presentation, you will have the opportunity to ask the speakers questions | Following the presentation, you will have the opportunity to ask the speakers questions |
| Playback | Replay available at the webcast link. | Replay available at the webcast link. |
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Media Release Zurich, April 27, 2022 |
Abbreviations AM – Asset Management; APAC – Asia Pacific; AUD – Australian dollar; AuM – assets under management; BCBS – Basel Committee on Banking Supervision; BIS – Bank for International Settlements; bn – billion; CECL - Current Expected Credit Loss; CET1 – common equity tier 1; CHF – Swiss francs; CSAM – Credit Suisse Asset Management; EMEA – Europe, Middle East and Africa; ESG – Environmental, Social and Governance; FINMA – Swiss Financial Market Supervisory Authority FINMA; GAAP – Generally accepted accounting principles; GTS – Global Trading Solutions; HRH – His Royal Highness; IB – Investment Bank; mn – million; M&A – Mergers & Acquisitions; NNA – net new assets; Q&A – Questions & Answers; RWA – risk weighted assets; SB – Swiss Bank; SCFF – Supply Chain Finance Funds; SEC – US Securities and Exchange Commission; TCFD - Task Force on Climate-Related Financial Disclosures; SCFF – Supply Chain Finance Funds; trn – trillion; (U)HNW – (Ultra) high-net-worth; UK – United Kingdom; US – United States; USD – US dollar; WEF IBC – World Economic Forum’s International Business Council; WM – Wealth Management. Important information This document contains select information from the full 1Q22 Earnings Release and 1Q22 Results Presentation slides that Credit Suisse believes is of particular interest to media professionals. The complete 1Q22 Earnings Release and 1Q22 Results Presentation slides, which have been distributed simultaneously, contain more comprehensive information about our results and operations for the reporting quarter, as well as important information about our reporting methodology and some of the terms used in these documents. The complete 1Q22Earnings Release and 1Q22 Results Presentation slides are not incorporated by reference into this document. Credit Suisse has not finalized its 1Q22 Financial Report and Credit Suisse’s independent registered public accounting firm has not completed its review of the condensed consolidated financial statements (unaudited) for the period. Accordingly, the financial information contained in this document is subject to completion of quarter-end procedures, which may result in changes to that information. Our ambition to release over USD 3 billion of capital from the Investment Bank over 2021-2022 and our ambition to invest approximately CHF 3 billion of capital in Wealth Management over 2021-2024 is based on an average of 13.5% risk-weighted assets and 4.25% leverage exposure. Our cost savings ambition is measured using adjusted operating expenses at constant 2021 FX rates, progressively increasing from 2022-2024, and does not include cost reductions from exited businesses. We may not achieve all of the expected benefits of our strategic initiatives. Factors beyond our control, including but not limited to the market and economic conditions (including macroeconomic and other challenges and uncertainties, for example, resulting from Russia’s invasion of Ukraine), 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. In particular, the terms “Estimate”, “Illustrative”, “Ambition”, “Objective”, “Outlook”, “Goal”, “Commitment” and “Aspiration” 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, goals, commitments and aspirations 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, increased inflation, interest rate volatility and levels, global and regional economic conditions, challenges and uncertainties resulting from Russia’s invasion of Ukraine, political uncertainty, changes in tax policies, scientific or technological developments, evolving sustainability strategies, changes in the nature or scope of our operations, changes in carbon markets, regulatory changes, changes in levels of client activity as a result of any of the foregoing and other factors. Accordingly, these statements, which speak only as of the date made, are not guarantees of future performance and should not be relied on for any purpose. We do not intend to update these estimates, illustrations, ambitions, objectives, outlooks, goals, commitments, aspirations or any other forward-looking statements. For these reasons, we caution you not to place undue reliance upon any forward-looking statements. In preparing this document, management has made estimates and assumptions that affect the numbers presented. Actual results may differ. Annualized number | do not take into account variations in operating results, seasonality and other factors and may not be indicative of actual, full-year results. Figures throughout this document may also be subject to rounding adjustments. All opinions and views constitute good faith 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. Return on tangible equity, a non-GAAP financial measure, is calculated as annualized net income attributable to shareholders divided by average tangible shareholders’ equity. Tangible shareholders’ equity, a non-GAAP financial measure, is calculated by deducting goodwill and other intangible assets from total shareholders’ equity as presented in our balance sheet. Management believes that return on tangible equity is meaningful as it is a measure used and relied upon by industry analysts and investors to assess valuations and capital adequacy. For end-1Q21, tangible shareholders’ equity excluded goodwill of CHF 4,644 million and other intangible assets of CHF 239 million from total shareholders’ equity of CHF 44,590 million as presented in our balance sheet. For end-4Q21, tangible shareholders’ equity excluded goodwill of CHF 2,917 million and other intangible assets of CHF 276 million from total shareholders’ equity of CHF 43,954 million as presented in our balance sheet. For end-1Q22, tangible shareholders’ equity excluded goodwill of CHF 2,931 million and other intangible assets of CHF 307 million from total shareholders’ equity of CHF 44,442 million as presented in our balance sheet. Regulatory capital is calculated as the average of 13.5% of RWA and 4.25% of leverage exposure and return on regulatory capital, a non-GAAP financial measure, is calculated using income/(loss) after tax and assumes a tax rate of 30% for periods prior to 2020 and 25% from 2020 onward. For the Investment Bank, return on regulatory capital is based on US dollar denominated numbers. Return on regulatory capital excluding certain items included in our reported results is calculated using results excluding such items, applying the same methodology. Adjusted return on regulatory capital excluding certain items included in our reported results is calculated using results excluding such items, applying the same methodology. Credit Suisse is subject to the Basel framework, as implemented in Switzerland, as well as Swiss legislation and regulations for systemically important banks, which include capital, liquidity, leverage and large exposure requirements and rules for emergency plans designed to maintain systemically relevant functions in the event of threatened insolvency. Credit Suisse has adopted the Bank for International Settlements (BIS) leverage ratio framework, as issued by the Basel Committee on Banking Supervision (BCBS) and implemented in Switzerland by the Swiss Financial Market Supervisory Authority FINMA (FINMA). Unless otherwise noted, all CET1 ratio, Tier-1 leverage ratio, risk-weighted assets and leverage exposure figures in this document are as of the end of the respective period and, for periods prior to 2019, on a “look-through” basis. 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 tier 1 leverage ratio and CET1 leverage ratio are calculated as BIS tier 1 capital and CET1 capital, respectively, divided by period end leverage exposure. Client business volume includes assets under management, custody assets (including assets under custody and commercial assets) and net loans. Investors and others should note that we announce important company information (including quarterly earnings releases and financial reports as well as our annual sustainability report) to the investing public using press releases, SEC and Swiss ad hoc filings, our website and public conference calls and webcasts. We also routinely use our Twitter account @creditsuisse (https://twitter.com/creditsuisse), our LinkedIn account (https://www.linkedin.com/company/credit-suisse/), our Instagram accounts (https://www.instagram.com/creditsuisse_careers/ and https://www.instagram.com/creditsuisse_ch/), our Facebook account (https://www.facebook.com/creditsuisse/) and other social media channels as additional means to disclose public information, including to excerpt key messages from our public disclosures. We may share or retweet such messages through certain of our regional accounts, including through Twitter at @csschweiz (https://twitter.com/csschweiz) and @csapac (https://twitter.com/csapac). Investors and others should take care to consider such abbreviated messages in the context of the disclosures from which they are |
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excerpted. The information we post on these social media accounts is not a part of this document. Information referenced in this document, whether via website links or otherwise, is not incorporated into this document. Certain material in this document 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, reasonableness or reliability of such information. In various tables, use of “–” indicates not meaningful or not applicable. The English language version of this document is the controlling version. |