![]() |
Financial Highlights |
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Net income (CHF million) | ||||||||||||||||||||||||||
Income from continuing operations | 540 | 1,302 | 2,599 | (59) | (79) | 7,760 | 8,281 | (6) | ||||||||||||||||||
Net income | 540 | 1,302 | 4,673 | (59) | (88) | 7,760 | 11,327 | (31) | ||||||||||||||||||
Earnings per share (CHF) | ||||||||||||||||||||||||||
Basic earnings per share from continuing operations | 0.53 | 1.27 | 2.42 | (58) | (78) | 7.43 | 7.53 | (1) | ||||||||||||||||||
Basic earnings per share | 0.53 | 1.27 | 4.35 | (58) | (88) | 7.43 | 10.30 | (28) | ||||||||||||||||||
Diluted earnings per share from continuing operations | 0.49 | 1.18 | 2.29 | (58) | (79) | 6.96 | 7.19 | (3) | ||||||||||||||||||
Diluted earnings per share | 0.49 | 1.18 | 4.12 | (58) | (88) | 6.96 | 9.83 | (29) | ||||||||||||||||||
Return on equity (%) | ||||||||||||||||||||||||||
Return on equity | 5.1 | 12.4 | 44.1 | – | – | 18.0 | 27.5 | – | ||||||||||||||||||
Core Results (CHF million) | ||||||||||||||||||||||||||
Net revenues | 6,561 | 6,020 | 9,816 | 9 | (33) | 34,953 | 34,940 | 0 | ||||||||||||||||||
Provision for credit losses | 203 | 4 | (20) | – | – | 240 | (111) | – | ||||||||||||||||||
Total operating expenses | 6,155 | 4,733 | 6,449 | 30 | (5) | 25,565 | 24,311 | 5 | ||||||||||||||||||
Income from continuing operations before taxes | 203 | 1,283 | 3,387 | (84) | (94) | 9,148 | 10,740 | (15) | ||||||||||||||||||
Core Results statement of income metrics (%) | ||||||||||||||||||||||||||
Cost/income ratio | 93.8 | 78.6 | 65.7 | – | – | 73.1 | 69.6 | – | ||||||||||||||||||
Pre-tax income margin | 3.1 | 21.3 | 34.5 | – | – | 26.2 | 30.7 | – | ||||||||||||||||||
Tax rate | (198.5) | (2.5) | 23.8 | – | – | 13.7 | 22.2 | – | ||||||||||||||||||
Net income margin from continuing operations | 8.2 | 21.6 | 26.5 | – | – | 22.2 | 23.7 | – | ||||||||||||||||||
Net income margin | 8.2 | 21.6 | 47.6 | – | – | 22.2 | 32.4 | – | ||||||||||||||||||
Assets under management and net new assets (CHF billion) | ||||||||||||||||||||||||||
Assets under management | 1,554.7 | 1,571.3 | 1,485.1 | (1.1) | 4.7 | 1,554.7 | 1,485.1 | 4.7 | ||||||||||||||||||
Net new assets | (10.5) | (9.7) | 6.9 | – | – | 50.4 | 95.4 | – | ||||||||||||||||||
Balance sheet statistics (CHF million) | ||||||||||||||||||||||||||
Total assets | 1,360,680 | 1,376,442 | 1,255,956 | (1) | 8 | 1,360,680 | 1,255,956 | 8 | ||||||||||||||||||
Net loans | 240,534 | 226,959 | 208,127 | 6 | 16 | 240,534 | 208,127 | 16 | ||||||||||||||||||
Total shareholders' equity | 43,199 | 41,965 | 43,586 | 3 | (1) | 43,199 | 43,586 | (1) | ||||||||||||||||||
Book value per share (CHF) | ||||||||||||||||||||||||||
Total book value per share | 42.33 | 41.12 | 41.02 | 3 | 3 | 42.33 | 41.02 | 3 | ||||||||||||||||||
Tangible book value per share | 31.23 | 30.16 | 30.20 | 4 | 3 | 31.23 | 30.20 | 3 | ||||||||||||||||||
Shares outstanding (million) | ||||||||||||||||||||||||||
Common shares issued | 1,162.4 | 1,162.2 | 1,214.9 | 0 | (4) | 1,162.4 | 1,214.9 | (4) | ||||||||||||||||||
Treasury shares | (141.8) | (141.6) | (152.4) | 0 | (7) | (141.8) | (152.4) | (7) | ||||||||||||||||||
Shares outstanding | 1,020.6 | 1,020.6 | 1,062.5 | 0 | (4) | 1,020.6 | 1,062.5 | (4) | ||||||||||||||||||
Market capitalization | ||||||||||||||||||||||||||
Market capitalization (CHF million) | 76,024 | 86,576 | 99,949 | (12) | (24) | 76,024 | 99,949 | (24) | ||||||||||||||||||
Market capitalization (USD million) | 67,093 | 74,290 | 81,894 | (10) | (18) | 67,093 | 81,894 | (18) | ||||||||||||||||||
BIS statistics | ||||||||||||||||||||||||||
Risk-weighted assets (CHF million) | 312,068 | 298,688 | 253,676 | 4 | 23 | 312,068 | 253,676 | 23 | ||||||||||||||||||
Tier 1 ratio (%) | 11.1 | 12.0 | 13.9 | – | – | 11.1 | 13.9 | – | ||||||||||||||||||
Total capital ratio (%) | 14.5 | 15.3 | 18.4 | – | – | 14.5 | 18.4 | – | ||||||||||||||||||
Number of employees (full-time equivalents) | ||||||||||||||||||||||||||
Number of employees | 48,100 | 47,200 | 44,900 | 2 | 7 | 48,100 | 44,900 | 7 | ||||||||||||||||||
![]() |
To be read in conjunction with the Credit Suisse Financial Statements 4Q07 (revised). |
Explanation of revision
Credit Suisse Results
Credit Suisse
Core Results
Key Performance Indicators
Core Results
Investment Banking
Private Banking
Wealth Management
Corporate & Retail Banking
Asset Management
Overview of Results and Assets under Management
Results
Assets under Management
Balance Sheet, Capital and Risk
Balance Sheet
Capital Management
Risk Management
Investor Information
Investor Information
For purposes of this report, unless the context otherwise requires, the terms “Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group and its consolidated subsidiaries and the term “the Bank” means Credit Suisse, the Swiss bank subsidiary of the Group, and its consolidated subsidiaries. |
Explanation of revision |
As announced on February 19, 2008, in connection with ongoing internal control processes, we identified mismarks and pricing errors by a small number of traders in certain ABS positions in our CDO trading business in Investment Banking, and immediately undertook an internal review of this business. As a result of this internal review, which is now complete, we recorded total valuation reductions of CHF 2.86 billion (USD 2.65 billion) as a result of revaluing these positions. A significant portion of the reductions reflected adverse market developments in the first quarter of 2008. These valuation reductions include a CHF 1,177 million reduction in net revenues and a CHF 789 million reduction in net income from the amounts we previously reported for the fourth quarter and full-year 2007, and such reductions are reflected in the consolidated financial statements and related discussion of our financial condition, results of o perations and cash flows and other information included in this report. |
For further information, refer to section II – Operating and financial review – Credit Suisse - Revaluing of certain asset-backed securities in the Annual Report 2007. |
Credit Suisse Results |
Credit Suisse |
Core Results |
Key Performance Indicators |
Credit Suisse |
Results | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Statements of income (CHF million) | ||||||||||||||||||||||||||
Net interest income | 2,156 | 1,959 | 1,427 | 10 | 51 | 8,453 | 6,566 | 29 | ||||||||||||||||||
Commissions and fees | 4,879 | 4,231 | 5,069 | 15 | (4) | 19,329 | 17,647 | 10 | ||||||||||||||||||
Trading revenues | (720) | (158) | 2,956 | 356 | – | 6,148 | 9,428 | (35) | ||||||||||||||||||
Other revenues | 1,921 | 810 | 1,362 | 137 | 41 | 5,805 | 4,962 | 17 | ||||||||||||||||||
Net revenues | 8,236 | 6,842 | 10,814 | 20 | (24) | 39,735 | 38,603 | 3 | ||||||||||||||||||
Provision for credit losses | 203 | 4 | (20) | – | – | 240 | (111) | – | ||||||||||||||||||
Compensation and benefits | 3,468 | 2,392 | 4,100 | 45 | (15) | 16,219 | 15,697 | 3 | ||||||||||||||||||
General and administrative expenses | 2,022 | 1,743 | 1,815 | 16 | 11 | 6,916 | 6,445 | 7 | ||||||||||||||||||
Commission expenses | 694 | 667 | 605 | 4 | 15 | 2,612 | 2,272 | 15 | ||||||||||||||||||
Total other operating expenses | 2,716 | 2,410 | 2,420 | 13 | 12 | 9,528 | 8,717 | 9 | ||||||||||||||||||
Total operating expenses | 6,184 | 4,802 | 6,520 | 29 | (5) | 25,747 | 24,414 | 5 | ||||||||||||||||||
Income from continuing operations before taxes | 1,849 | 2,036 | 4,314 | (9) | (57) | 13,748 | 14,300 | (4) | ||||||||||||||||||
Income tax expense | (403) | (32) | 805 | – | – | 1,250 | 2,389 | (48) | ||||||||||||||||||
Minority interests | 1,712 | 766 | 910 | 123 | 88 | 4,738 | 3,630 | 31 | ||||||||||||||||||
Income from continuing operations | 540 | 1,302 | 2,599 | (59) | (79) | 7,760 | 8,281 | (6) | ||||||||||||||||||
Income from discontinued operations | 0 | 0 | 2,074 | – | (100) | 0 | 3,070 | (100) | ||||||||||||||||||
Extraordinary items | 0 | 0 | 0 | – | – | 0 | (24) | 100 | ||||||||||||||||||
Net income | 540 | 1,302 | 4,673 | (59) | (88) | 7,760 | 11,327 | (31) | ||||||||||||||||||
Earnings per share (CHF) | ||||||||||||||||||||||||||
Basic earnings per share from continuing operations | 0.53 | 1.27 | 2.42 | (58) | (78) | 7.43 | 7.53 | (1) | ||||||||||||||||||
Basic earnings per share | 0.53 | 1.27 | 4.35 | (58) | (88) | 7.43 | 10.30 | (28) | ||||||||||||||||||
Diluted earnings per share from continuing operations | 0.49 | 1.18 | 2.29 | (58) | (79) | 6.96 | 7.19 | (3) | ||||||||||||||||||
Diluted earnings per share | 0.49 | 1.18 | 4.12 | (58) | (88) | 6.96 | 9.83 | (29) | ||||||||||||||||||
Return on equity (%) | ||||||||||||||||||||||||||
Return on equity | 5.1 | 12.4 | 44.1 | – | – | 18.0 | 27.5 | – | ||||||||||||||||||
Return on tangible equity1 | 6.9 | 17.1 | 60.9 | – | – | 24.5 | 40.6 | – | ||||||||||||||||||
BIS statistics | ||||||||||||||||||||||||||
Risk-weighted assets (CHF million) | 312,068 | 298,688 | 253,676 | 4 | 23 | 312,068 | 253,676 | 23 | ||||||||||||||||||
Tier 1 capital (CHF million) | 34,737 | 35,888 | 35,147 | (3) | (1) | 34,737 | 35,147 | (1) | ||||||||||||||||||
Total capital (CHF million) | 45,102 | 45,682 | 46,764 | (1) | (4) | 45,102 | 46,764 | (4) | ||||||||||||||||||
Tier 1 ratio (%) | 11.1 | 12.0 | 13.9 | – | – | 11.1 | 13.9 | – | ||||||||||||||||||
Total capital ratio (%) | 14.5 | 15.3 | 18.4 | – | – | 14.5 | 18.4 | – | ||||||||||||||||||
Number of employees (full-time equivalents) | ||||||||||||||||||||||||||
Number of employees | 48,100 | 47,200 | 44,900 | 2 | 7 | 48,100 | 44,900 | 7 | ||||||||||||||||||
1 Based on tangible shareholders' equity, which is calculated by deducting goodwill and other intangible assets from total shareholders' equity. Management believes that the return on tangible shareholders' equity is meaningful as it allows consistent measurement of the performance of businesses without regard to whether the businesses were acquired. |
![]() |
Credit Suisse and Core Results | |||||||||||||||||||||||||||||
Core Results | Minority interests without SEI | Credit Suisse | |||||||||||||||||||||||||||
in the period | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | ||||||||||||||||||||
Statements of income (CHF million) | |||||||||||||||||||||||||||||
Net revenues | 6,561 | 6,020 | 9,816 | 1,675 | 822 | 998 | 8,236 | 6,842 | 10,814 | ||||||||||||||||||||
Provision for credit losses | 203 | 4 | (20) | 0 | 0 | 0 | 203 | 4 | (20) | ||||||||||||||||||||
Compensation and benefits | 3,457 | 2,354 | 4,047 | 11 | 38 | 53 | 3,468 | 2,392 | 4,100 | ||||||||||||||||||||
General and administrative expenses | 2,004 | 1,712 | 1,797 | 18 | 31 | 18 | 2,022 | 1,743 | 1,815 | ||||||||||||||||||||
Commission expenses | 694 | 667 | 605 | 0 | 0 | 0 | 694 | 667 | 605 | ||||||||||||||||||||
Total other operating expenses | 2,698 | 2,379 | 2,402 | 18 | 31 | 18 | 2,716 | 2,410 | 2,420 | ||||||||||||||||||||
Total operating expenses | 6,155 | 4,733 | 6,449 | 29 | 69 | 71 | 6,184 | 4,802 | 6,520 | ||||||||||||||||||||
Income from continuing operations before taxes | 203 | 1,283 | 3,387 | 1,646 | 753 | 927 | 1,849 | 2,036 | 4,314 | ||||||||||||||||||||
Income tax expense | (403) | (32) | 805 | 0 | 0 | 0 | (403) | (32) | 805 | ||||||||||||||||||||
Minority interests | 66 | 13 | (17) | 1,646 | 753 | 927 | 1,712 | 766 | 910 | ||||||||||||||||||||
Income from continuing operations | 540 | 1,302 | 2,599 | 0 | 0 | 0 | 540 | 1,302 | 2,599 | ||||||||||||||||||||
Income from discontinued operations | 0 | 0 | 2,074 | 0 | 0 | 0 | 0 | 0 | 2,074 | ||||||||||||||||||||
Net income | 540 | 1,302 | 4,673 | 0 | 0 | 0 | 540 | 1,302 | 4,673 | ||||||||||||||||||||
Statement of income metrics (%) | |||||||||||||||||||||||||||||
Compensation/revenue ratio | 52.7 | 39.1 | 41.2 | – | – | – | 42.1 | 35.0 | 37.9 | ||||||||||||||||||||
Non-compensation/revenue ratio | 41.1 | 39.5 | 24.5 | – | – | – | 33.0 | 35.2 | 22.4 | ||||||||||||||||||||
Cost/income ratio | 93.8 | 78.6 | 65.7 | – | – | – | 75.1 | 70.2 | 60.3 | ||||||||||||||||||||
Pre-tax income margin | 3.1 | 21.3 | 34.5 | – | – | – | 22.5 | 29.8 | 39.9 | ||||||||||||||||||||
Tax rate | (198.5) | (2.5) | 23.8 | – | – | – | (21.8) | (1.6) | 18.7 | ||||||||||||||||||||
Net income margin from continuing operations | 8.2 | 21.6 | 26.5 | – | – | – | 6.6 | 19.0 | 24.0 | ||||||||||||||||||||
Net income margin | 8.2 | 21.6 | 47.6 | – | – | – | 6.6 | 19.0 | 43.2 | ||||||||||||||||||||
Core Results |
Results | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Statements of income (CHF million) | ||||||||||||||||||||||||||
Net interest income | 2,130 | 1,901 | 1,387 | 12 | 54 | 8,314 | 6,408 | 30 | ||||||||||||||||||
Commissions and fees | 4,889 | 4,208 | 5,089 | 16 | (4) | 19,360 | 17,754 | 9 | ||||||||||||||||||
Trading revenues | (720) | (158) | 2,956 | 356 | – | 6,148 | 9,375 | (34) | ||||||||||||||||||
Other revenues | 262 | 69 | 384 | 280 | (32) | 1,131 | 1,403 | (19) | ||||||||||||||||||
Net revenues1, 2 | 6,561 | 6,020 | 9,816 | 9 | (33) | 34,953 | 34,940 | – | ||||||||||||||||||
Provision for credit losses | 203 | 4 | (20) | – | – | 240 | (111) | – | ||||||||||||||||||
Compensation and benefits | 3,457 | 2,354 | 4,047 | 47 | (15) | 16,103 | 15,644 | 3 | ||||||||||||||||||
General and administrative expenses | 2,004 | 1,712 | 1,797 | 17 | 12 | 6,850 | 6,395 | 3 | 7 | |||||||||||||||||
Commission expenses | 694 | 667 | 605 | 4 | 15 | 2,612 | 2,272 | 15 | ||||||||||||||||||
Total other operating expenses | 2,698 | 2,379 | 2,402 | 13 | 12 | 9,462 | 8,667 | 9 | ||||||||||||||||||
Total operating expenses | 6,155 | 4,733 | 6,449 | 30 | (5) | 25,565 | 24,311 | 5 | ||||||||||||||||||
Income from continuing operations before taxes | 203 | 1,283 | 3,387 | (84) | (94) | 9,148 | 10,740 | (15) | ||||||||||||||||||
Income tax expense | (403) | (32) | 805 | – | – | 1,250 | 2,389 | (48) | ||||||||||||||||||
Minority interests | 66 | 13 | (17) | 408 | – | 138 | 70 | 97 | ||||||||||||||||||
Income from continuing operations | 540 | 1,302 | 2,599 | (59) | (79) | 7,760 | 8,281 | (6) | ||||||||||||||||||
Income from discontinued operations | 0 | 0 | 2,074 | – | (100) | 0 | 3,070 | (100) | ||||||||||||||||||
Extraordinary items | 0 | 0 | 0 | – | – | 0 | (24) | 100 | ||||||||||||||||||
Net income | 540 | 1,302 | 4,673 | (59) | (88) | 7,760 | 11,327 | (31) | ||||||||||||||||||
Statement of income metrics (%) | ||||||||||||||||||||||||||
Compensation/revenue ratio | 52.7 | 39.1 | 41.2 | – | – | 46.1 | 44.8 | – | ||||||||||||||||||
Non-compensation/revenue ratio | 41.1 | 39.5 | 24.5 | – | – | 27.1 | 24.8 | – | ||||||||||||||||||
Cost/income ratio | 93.8 | 78.6 | 65.7 | – | – | 73.1 | 69.6 | – | ||||||||||||||||||
Pre-tax income margin | 3.1 | 21.3 | 34.5 | – | – | 26.2 | 30.7 | – | ||||||||||||||||||
Tax rate | (198.5) | (2.5) | 23.8 | – | – | 13.7 | 22.2 | – | ||||||||||||||||||
Net income margin from continuing operations | 8.2 | 21.6 | 26.5 | – | – | 22.2 | 23.7 | – | ||||||||||||||||||
Net income margin | 8.2 | 21.6 | 47.6 | – | – | 22.2 | 32.4 | – | ||||||||||||||||||
Number of employees (full-time equivalents) | ||||||||||||||||||||||||||
Number of employees | 48,100 | 47,200 | 44,900 | 2 | 7 | 48,100 | 44,900 | 7 | ||||||||||||||||||
1 Includes valuation reductions in Asset Management of CHF 774 million and CHF 920 million in 4Q07 and 2007, respectively, from securities purchased from our money market funds. 2 Includes valuation reductions in Investment Banking of CHF 2,436 million and CHF 3,187 million in 4Q07 and 2007, respectively, relating to leveraged finance and structured products. 3 Includes CHF 508 million of credits from insurance settlements for litigation and related costs in Investment Banking. |
Number of employees by segment | |||||||||||||||||
end of | % change | ||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | |||||||||||||
Number of employees by segment (full-time equivalents) | |||||||||||||||||
Investment Banking | 20,600 | 20,300 | 18,700 | 1 | 10 | ||||||||||||
Wealth Management | 14,300 | 13,900 | 13,400 | 3 | 7 | ||||||||||||
Corporate & Retail Banking | 8,900 | 8,900 | 8,800 | 0 | 1 | ||||||||||||
Private Banking | 23,200 | 22,800 | 22,200 | 2 | 5 | ||||||||||||
Asset Management | 3,600 | 3,400 | 3,400 | 6 | 6 | ||||||||||||
Corporate Center | 700 | 700 | 600 | 0 | 17 | ||||||||||||
Number of employees | 48,100 | 47,200 | 44,900 | 2 | 7 | ||||||||||||
Key Performance Indicators |
in / end of | |||||||||||||||||
4Q07 | 2007 | 2006 | 2005 | 2004 | |||||||||||||
Growth (%) | |||||||||||||||||
YoY diluted earnings per share growth from continuing operations | (78.6) | (3.2) | 84.4 | (7.8) | 53.8 | ||||||||||||
Net new asset growth (annualized) | (2.7) | 3.4 | 7.2 | 5.4 | 2.7 | ||||||||||||
Net new asset growth (rolling four-quarter average) | 3.4 | 3.4 | 7.2 | 5.4 | 2.7 | ||||||||||||
Efficiency (%) | |||||||||||||||||
Core Results cost/income ratio | 93.8 | 73.1 | 69.6 | 81.6 | 75.4 | ||||||||||||
Return (%) | |||||||||||||||||
Return on equity (annualized) | 5.1 | 18.0 | 27.5 | 15.4 | 15.9 | ||||||||||||
Total shareholder return (annualized) | – | 1 | (17.8) | 30.5 | 44.2 | 6.8 | |||||||||||
Capital strength (%) | |||||||||||||||||
Basel I BIS tier 1 ratio | 11.1 | 11.1 | 13.9 | 11.3 | 12.3 | ||||||||||||
1 Not applicable as total shareholder return is calculated on a year-to-date basis. |
Core Results |
Investment Banking |
Private Banking |
Wealth Management |
Corporate & Retail Banking |
Asset Management |
Investment Banking |
Results | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Statements of income (CHF million) | ||||||||||||||||||||||||||
Net revenues | 2,741 | 2,097 | 6,085 | 31 | (55) | 18,958 | 20,469 | (7) | ||||||||||||||||||
Provision for credit losses | 210 | 20 | 20 | – | – | 300 | (38) | – | ||||||||||||||||||
Compensation and benefits | 2,080 | 839 | 2,566 | 148 | (19) | 10,191 | 10,261 | (1) | ||||||||||||||||||
General and administrative expenses | 941 | 864 | 847 | 9 | 11 | 3,435 | 3,077 | 1 | 12 | |||||||||||||||||
Commission expenses | 359 | 368 | 310 | (2) | 16 | 1,383 | 1,218 | 14 | ||||||||||||||||||
Total other operating expenses | 1,300 | 1,232 | 1,157 | 6 | 12 | 4,818 | 4,295 | 12 | ||||||||||||||||||
Total operating expenses | 3,380 | 2,071 | 3,723 | 63 | (9) | 15,009 | 14,556 | 3 | ||||||||||||||||||
Income/(loss) from continuing operations before taxes | (849) | 6 | 2,342 | – | – | 3,649 | 5,951 | (39) | ||||||||||||||||||
Statement of income metrics (%) | ||||||||||||||||||||||||||
Compensation/revenue ratio | 75.9 | 40.0 | 42.2 | – | – | 53.8 | 50.1 | – | ||||||||||||||||||
Non-compensation/revenue ratio | 47.4 | 58.8 | 19.0 | – | – | 25.4 | 21.0 | – | ||||||||||||||||||
Cost/income ratio | 123.3 | 98.8 | 61.2 | – | – | 79.2 | 71.1 | – | ||||||||||||||||||
Pre-tax income margin | (31.0) | 0.3 | 38.5 | – | – | 19.2 | 29.1 | – | ||||||||||||||||||
Utilized economic capital and return | ||||||||||||||||||||||||||
Average utilized economic capital (CHF million) | 19,182 | 2 | 19,111 | 19,087 | 0 | 0 | 18,940 | 2 | 18,026 | 5 | ||||||||||||||||
Pre-tax return on average utilized economic capital (%)3 | (16.7) | 2 | 1.3 | 51.4 | – | – | 20.4 | 2 | 35.4 | – | ||||||||||||||||
Balance sheet statistics (CHF million) | ||||||||||||||||||||||||||
Total assets | 1,140,740 | 1,156,573 | 1,046,557 | (1) | 9 | 1,140,740 | 1,046,557 | 9 | ||||||||||||||||||
Net loans | 64,892 | 53,097 | 44,285 | 22 | 47 | 64,892 | 44,285 | 47 | ||||||||||||||||||
Goodwill | 7,465 | 7,551 | 7,809 | (1) | (4) | 7,465 | 7,809 | (4) | ||||||||||||||||||
Number of employees (full-time equivalents) | ||||||||||||||||||||||||||
Number of employees | 20,600 | 20,300 | 18,700 | 1 | 10 | 20,600 | 18,700 | 10 | ||||||||||||||||||
1 Includes CHF 508 million of credits from insurance settlements for litigation and related costs. 2 Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business, as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends. For further information, refer to Risk Management – Revaluation impact on risk metrics. 3 Calculated using a return excluding interest costs for allocated goodwill. |
Results (continued) | ||||||||||||||||||||||||||
in | % change | in | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Net revenue detail (CHF million) | ||||||||||||||||||||||||||
Debt underwriting | 341 | 1 | 85 | 686 | 301 | (50) | 1,864 | 1 | 2,206 | (16) | ||||||||||||||||
Equity underwriting | 393 | 327 | 484 | 20 | (19) | 1,444 | 1,270 | 14 | ||||||||||||||||||
Total underwriting | 734 | 412 | 1,170 | 78 | (37) | 3,308 | 3,476 | (5) | ||||||||||||||||||
Advisory and other fees | 670 | 440 | 785 | 52 | (15) | 2,253 | 1,900 | 19 | ||||||||||||||||||
Total underwriting and advisory | 1,404 | 852 | 1,955 | 65 | (28) | 5,561 | 5,376 | 3 | ||||||||||||||||||
Fixed income trading | (484) | 2 | 514 | 2,755 | – | – | 6,084 | 2 | 9,598 | (37) | ||||||||||||||||
Equity trading | 2,068 | 1,037 | 1,596 | 99 | 30 | 7,751 | 5,881 | 32 | ||||||||||||||||||
Total trading | 1,584 | 1,551 | 4,351 | 2 | (64) | 13,835 | 15,479 | (11) | ||||||||||||||||||
Other | (247) | 3 | (306) | (221) | (19) | 12 | (438) | 3 | (386) | 13 | ||||||||||||||||
Net revenues | 2,741 | 2,097 | 6,085 | 31 | (55) | 18,958 | 20,469 | (7) | ||||||||||||||||||
Average one-day, 99% Value-at-Risk (CHF million) | ||||||||||||||||||||||||||
Interest rate and credit spread | 103 | 72 | 48 | 43 | 115 | 72 | 56 | 29 | ||||||||||||||||||
Foreign exchange | 38 | 22 | 19 | 73 | 100 | 26 | 19 | 37 | ||||||||||||||||||
Commodity | 22 | 18 | 12 | 22 | 83 | 17 | 10 | 70 | ||||||||||||||||||
Equity | 90 | 71 | 57 | 27 | 58 | 80 | 59 | 36 | ||||||||||||||||||
Diversification benefit | (81) | (88) | (65) | (8) | 25 | (81) | (65) | 25 | ||||||||||||||||||
Average one-day, 99% Value-at-Risk | 172 | 4 | 95 | 71 | 81 | 142 | 114 | 4 | 79 | 44 | ||||||||||||||||
1 Includes CHF 16 million and CHF 380 million of net valuation reductions (including hedges) on ABS CDO origination assets and CHF 23 million and CHF 31 million of fee revenues from the leveraged finance business in 4Q07 and 2007, respectively. 2 Includes CHF 864 million and CHF 1,067 million of net valuation reductions (including fees, hedges and interest on funded positions) on CMBS and RMBS, CHF 54 million and CHF 311 million of net valuation reductions (including fees, hedges, interest on funded positions and recoveries) on leveraged finance loan commitments and CHF 1,325 million and CHF 905 million of net valuation reductions (including hedges) on ABS CDO warehouse and synthetic CDO assets in 4Q07 and 2007, respectively. 3 Includes CHF 200 million and CHF 555 million of net valuation reductions (including fees, hedges, interest on funded positions and recoveries) on bridge loan commitments in 4Q07 and 2007, respectively. 4 Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business, as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends. For further information, refer to Risk Management – Revaluation impact on risk metrics. |
Exposures | |||||
CHF billion | end of 2007 | ||||
Origination-related positions 1 | |||||
Unfunded commitments | 25.3 | ||||
Funded positions | 10.7 | ||||
Leveraged finance | 36.0 | ||||
Commercial mortgages | 25.9 | ||||
Trading-related book positions 2 | |||||
US subprime | 1.6 | ||||
US Alt-A | 2.8 | ||||
US prime | 1.4 | ||||
European/Asian | 2.9 | ||||
Residential mortgages | 8.7 | ||||
ABS and indices | 3.2 | ||||
Synthetic ABS CDO | (1.1) | ||||
Cash CDOs | (0.5) | ||||
CDO US subprime3 | 1.6 | ||||
1 Exposures shown gross. 2 Exposures shown net. 3 Reflects the valuation reductions on certain ABS positions. |
Net valuation reductions | |||||
in | |||||
CHF million | 4Q07 | 2007 | |||
Leveraged finance1 | 231 | 835 | |||
CMBS2 | 384 | 554 | |||
RMBS2 | 480 | 513 | |||
CDO3 | 1,341 | 1,285 | |||
Total | 2,436 | 3,187 | |||
1 Including fees, hedges, interest on funded positions and recoveries. 2 Including fees, hedges and interest on funded positions. 3 Including hedges. |
League table positions | ||||||||||||||
in / end of | ||||||||||||||
4Q07 | 2007 | 2006 | 2005 | |||||||||||
League table rank / market share (%) 1 | ||||||||||||||
Global fee pool2 | 8 / 5% | 7 / 5% | 4 / 6% | 7 / 5% | ||||||||||
High-yield3 | 2 / 14% | 2 / 11% | 3 / 12% | 3 / 11% | ||||||||||
Investment-grade3 | 8 / 4% | 13 / 3% | 13 / 3% | 10 / 4% | ||||||||||
Asset-backed3 | 12 / 2% | 10 / 5% | 8 / 5% | – / –% | ||||||||||
Mortgage-backed3 | 5 / 6% | 4 / 7% | 5 / 7% | – / –% | ||||||||||
Total debt underwriting3 | 12 / 4% | 11 / 4% | 8 / 5% | 6 / 5% | ||||||||||
IPO2 | 6 / 4% | 3 / 8% | 4 / 7% | 1 / 10% | ||||||||||
Follow-on2 | 8 / 3% | 7 / 6% | 7 / 6% | 10 / 3% | ||||||||||
Convertible2 | 7 / 4% | 9 / 5% | 11 / 4% | 10 / 4% | ||||||||||
Total equity underwriting2 | 8 / 4% | 7 / 6% | 7 / 6% | 8 / 5% | ||||||||||
Announced mergers and acquisitions3 | 7 / 29% | 6 / 20% | 6 / 19% | 10 / 11% | ||||||||||
Completed mergers and acquisitions3 | 8 / 20% | 8 / 18% | 8 / 15% | 8 / 14% | ||||||||||
1 Volume-based, except Global fee pool 2 Dealogic 3 Thomson Financial |
Private Banking |
Results | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Statements of income (CHF million) | ||||||||||||||||||||||||||
Net revenues | 3,478 | 3,325 | 2,973 | 5 | 17 | 13,522 | 11,678 | 16 | ||||||||||||||||||
Provision for credit losses | (6) | (17) | (41) | (65) | (85) | (59) | (73) | (19) | ||||||||||||||||||
Compensation and benefits | 1,098 | 1,152 | 1,037 | (5) | 6 | 4,529 | 4,038 | 12 | ||||||||||||||||||
General and administrative expenses | 768 | 673 | 636 | 14 | 21 | 2,670 | 2,382 | 12 | ||||||||||||||||||
Commission expenses | 241 | 228 | 198 | 6 | 22 | 896 | 735 | 22 | ||||||||||||||||||
Total other operating expenses | 1,009 | 901 | 834 | 12 | 21 | 3,566 | 3,117 | 14 | ||||||||||||||||||
Total operating expenses | 2,107 | 2,053 | 1,871 | 3 | 13 | 8,095 | 7,155 | 13 | ||||||||||||||||||
Income from continuing operations before taxes | 1,377 | 1,289 | 1,143 | 7 | 20 | 5,486 | 4,596 | 19 | ||||||||||||||||||
Statement of income metrics (%) | ||||||||||||||||||||||||||
Compensation/revenue ratio | 31.6 | 34.6 | 34.9 | – | – | 33.5 | 34.6 | – | ||||||||||||||||||
Non-compensation/revenue ratio | 29.0 | 27.1 | 28.1 | – | – | 26.4 | 26.7 | – | ||||||||||||||||||
Cost/income ratio | 60.6 | 61.7 | 62.9 | – | – | 59.9 | 61.3 | – | ||||||||||||||||||
Pre-tax income margin | 39.6 | 38.8 | 38.4 | – | – | 40.6 | 39.4 | – | ||||||||||||||||||
Utilized economic capital and return | ||||||||||||||||||||||||||
Average utilized economic capital (CHF million) | 4,785 | 4,694 | 4,865 | 2 | (2) | 4,668 | 5,172 | (10) | ||||||||||||||||||
Pre-tax return on average utilized economic capital (%)1 | 115.9 | 110.7 | 95.7 | – | – | 118.4 | 90.4 | – | ||||||||||||||||||
Net revenue detail (CHF million) | ||||||||||||||||||||||||||
Net interest income | 1,230 | 1,224 | 1,070 | 0 | 15 | 4,788 | 4,095 | 17 | ||||||||||||||||||
Total non-interest income | 2,248 | 2,101 | 1,903 | 7 | 18 | 8,734 | 7,583 | 15 | ||||||||||||||||||
Net revenues | 3,478 | 3,325 | 2,973 | 5 | 17 | 13,522 | 11,678 | 16 | ||||||||||||||||||
Balance sheet statistics (CHF million) | ||||||||||||||||||||||||||
Total assets | 376,800 | 370,724 | 340,741 | 2 | 11 | 376,800 | 340,741 | 11 | ||||||||||||||||||
Net loans | 175,506 | 173,349 | 163,670 | 1 | 7 | 175,506 | 163,670 | 7 | ||||||||||||||||||
Goodwill | 975 | 794 | 791 | 23 | 23 | 975 | 791 | 23 | ||||||||||||||||||
Number of employees (full-time equivalents) | ||||||||||||||||||||||||||
Number of employees | 23,200 | 22,800 | 22,200 | 2 | 5 | 23,200 | 22,200 | 5 | ||||||||||||||||||
1 Calculated using a return excluding interest costs for allocated goodwill. |
Wealth Management |
Results | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Statements of income (CHF million) | ||||||||||||||||||||||||||
Net revenues | 2,476 | 2,344 | 2,077 | 6 | 19 | 9,583 | 8,181 | 17 | ||||||||||||||||||
Provision for credit losses | 2 | (1) | (17) | – | – | 3 | (19) | – | ||||||||||||||||||
Compensation and benefits | 778 | 812 | 714 | (4) | 9 | 3,177 | 2,780 | 14 | ||||||||||||||||||
General and administrative expenses | 513 | 437 | 403 | 17 | 27 | 1,770 | 1,571 | 13 | ||||||||||||||||||
Commission expenses | 207 | 196 | 166 | 6 | 25 | 768 | 612 | 25 | ||||||||||||||||||
Total other operating expenses | 720 | 633 | 569 | 14 | 27 | 2,538 | 2,183 | 16 | ||||||||||||||||||
Total operating expenses | 1,498 | 1,445 | 1,283 | 4 | 17 | 5,715 | 4,963 | 15 | ||||||||||||||||||
Income from continuing operations before taxes | 976 | 900 | 811 | 8 | 20 | 3,865 | 3,237 | 19 | ||||||||||||||||||
Statement of income metrics (%) | ||||||||||||||||||||||||||
Compensation/revenue ratio | 31.4 | 34.6 | 34.4 | – | – | 33.2 | 34.0 | – | ||||||||||||||||||
Non-compensation/revenue ratio | 29.1 | 27.0 | 27.4 | – | – | 26.5 | 26.7 | – | ||||||||||||||||||
Cost/income ratio | 60.5 | 61.6 | 61.8 | – | – | 59.6 | 60.7 | – | ||||||||||||||||||
Pre-tax income margin | 39.4 | 38.4 | 39.0 | – | – | 40.3 | 39.6 | – | ||||||||||||||||||
Utilized economic capital and return | ||||||||||||||||||||||||||
Average utilized economic capital (CHF million) | 1,724 | 1,664 | 1,486 | 4 | 16 | 1,592 | 1,709 | (7) | ||||||||||||||||||
Pre-tax return on average utilized economic capital (%)1 | 228.6 | 218.8 | 223.6 | – | – | 245.2 | 193.9 | – | ||||||||||||||||||
Balance sheet statistics (CHF million) | ||||||||||||||||||||||||||
Total assets | 268,871 | 261,277 | 229,731 | 3 | 17 | 268,871 | 229,731 | 17 | ||||||||||||||||||
Net loans | 76,265 | 76,093 | 69,156 | 0 | 10 | 76,265 | 69,156 | 10 | ||||||||||||||||||
Goodwill | 794 | 613 | 610 | 30 | 30 | 794 | 610 | 30 | ||||||||||||||||||
Number of employees (full-time equivalents) | ||||||||||||||||||||||||||
Number of employees | 14,300 | 13,900 | 13,400 | 3 | 7 | 14,300 | 13,400 | 7 | ||||||||||||||||||
Number of relationship managers | ||||||||||||||||||||||||||
Number of relationship managers | 3,140 | 3,010 | 2,820 | 4 | 11 | 3,140 | 2,820 | 11 | ||||||||||||||||||
1 Calculated using a return excluding interest costs for allocated goodwill. |
Results (continued) | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Net revenue detail (CHF million) | ||||||||||||||||||||||||||
Net interest income | 643 | 637 | 488 | 1 | 32 | 2,446 | 1,916 | 28 | ||||||||||||||||||
Total non-interest income | 1,833 | 1,707 | 1,589 | 7 | 15 | 7,137 | 6,265 | 14 | ||||||||||||||||||
Net revenues | 2,476 | 2,344 | 2,077 | 6 | 19 | 9,583 | 8,181 | 17 | ||||||||||||||||||
Net revenue detail (CHF million) | ||||||||||||||||||||||||||
Recurring | 1,722 | 1,639 | 1,339 | 5 | 29 | 6,395 | 5,193 | 23 | ||||||||||||||||||
Transaction-based | 754 | 705 | 738 | 7 | 2 | 3,188 | 2,988 | 7 | ||||||||||||||||||
Net revenues | 2,476 | 2,344 | 2,077 | 6 | 19 | 9,583 | 8,181 | 17 | ||||||||||||||||||
Gross and net margin on assets under management (bp) | ||||||||||||||||||||||||||
Recurring | 81 | 78 | 70 | – | – | 77 | 71 | – | ||||||||||||||||||
Transaction-based | 36 | 34 | 39 | – | – | 38 | 41 | – | ||||||||||||||||||
Gross margin | 117 | 112 | 109 | – | – | 115 | 112 | – | ||||||||||||||||||
Net margin (pre-tax) | 46 | 43 | 42 | – | – | 47 | 44 | – | ||||||||||||||||||
Assets under management | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Assets under management (CHF billion) | ||||||||||||||||||||||||||
Assets under management | 838.6 | 834.7 | 784.2 | 0.0 | 6.9 | 838.6 | 784.2 | 6.9 | ||||||||||||||||||
of which discretionary assets | 182.7 | 189.6 | 177.6 | (3.6) | 2.9 | 182.7 | 177.6 | 2.9 | ||||||||||||||||||
of which advisory assets | 655.9 | 645.1 | 606.6 | 1.7 | 8.1 | 655.9 | 606.6 | 8.1 | ||||||||||||||||||
Growth in assets under management (CHF billion) | ||||||||||||||||||||||||||
Net new assets | 12.0 | 9.7 | 8.6 | – | – | 50.2 | 50.5 | – | ||||||||||||||||||
Acquisitions and divestitures | 14.1 | 0.0 | 0.0 | – | – | 14.1 | 0.0 | – | ||||||||||||||||||
Market movements and investment performance | (4.5) | 2.2 | 28.0 | – | – | 38.1 | 51.1 | – | ||||||||||||||||||
Currency | (15.5) | (16.1) | (5.2) | – | – | (23.1) | (9.5) | – | ||||||||||||||||||
Other | (2.2) | (21.6) | 1 | (0.4) | – | – | (24.9) | 1 | (1.2) | – | ||||||||||||||||
Total other effects | (8.1) | (35.5) | 22.4 | – | – | 4.2 | 40.4 | – | ||||||||||||||||||
Growth in assets under management | 3.9 | (25.8) | 31.0 | – | – | 54.4 | 90.9 | – | ||||||||||||||||||
Growth in assets under management (%) | ||||||||||||||||||||||||||
Net new assets | 5.7 | 4.5 | 4.6 | – | – | 6.4 | 7.3 | – | ||||||||||||||||||
Total other effects | (3.9) | (16.5) | 1 | 11.9 | – | – | 0.5 | 1 | 5.8 | – | ||||||||||||||||
Growth in assets under management | 1.8 | (12.0) | 16.5 | – | – | 6.9 | 13.1 | – | ||||||||||||||||||
Growth in assets under management (rolling four-quarter average) (%) | ||||||||||||||||||||||||||
Net new assets | 6.4 | 6.2 | 7.3 | – | – | – | – | – | ||||||||||||||||||
Total other effects | 0.5 | 4.6 | 1 | 5.8 | – | – | – | – | – | |||||||||||||||||
Growth in assets under management (rolling four-quarter average) | 6.9 | 10.8 | 13.1 | – | – | – | – | – | ||||||||||||||||||
1 The reduction in assets under management also reflects CHF 21.6 billion of corporate cash now reported only in client assets. |
Corporate & Retail Banking |
Results | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Statements of income (CHF million) | ||||||||||||||||||||||||||
Net revenues | 1,002 | 981 | 896 | 2 | 12 | 3,939 | 3,497 | 13 | ||||||||||||||||||
Provision for credit losses | (8) | (16) | (24) | (50) | (67) | (62) | (54) | 15 | ||||||||||||||||||
Compensation and benefits | 320 | 340 | 323 | (6) | (1) | 1,352 | 1,258 | 7 | ||||||||||||||||||
General and administrative expenses | 255 | 236 | 233 | 8 | 9 | 900 | 811 | 11 | ||||||||||||||||||
Commission expenses | 34 | 32 | 32 | 6 | 6 | 128 | 123 | 4 | ||||||||||||||||||
Total other operating expenses | 289 | 268 | 265 | 8 | 9 | 1,028 | 934 | 10 | ||||||||||||||||||
Total operating expenses | 609 | 608 | 588 | 0 | 4 | 2,380 | 2,192 | 9 | ||||||||||||||||||
Income from continuing operations before taxes | 401 | 389 | 332 | 3 | 21 | 1,621 | 1,359 | 19 | ||||||||||||||||||
Statement of income metrics (%) | ||||||||||||||||||||||||||
Compensation/revenue ratio | 31.9 | 34.7 | 36.0 | – | – | 34.3 | 36.0 | – | ||||||||||||||||||
Non-compensation/revenue ratio | 28.8 | 27.3 | 29.6 | – | – | 26.1 | 26.7 | – | ||||||||||||||||||
Cost/income ratio | 60.8 | 62.0 | 65.6 | – | – | 60.4 | 62.7 | – | ||||||||||||||||||
Pre-tax income margin | 40.0 | 39.7 | 37.1 | – | – | 41.2 | 38.9 | – | ||||||||||||||||||
Utilized economic capital and return | ||||||||||||||||||||||||||
Average utilized economic capital (CHF million) | 3,061 | 3,030 | 3,379 | 1 | (9) | 3,076 | 3,463 | (11) | ||||||||||||||||||
Pre-tax return on average utilized economic capital (%)1 | 52.5 | 51.3 | 39.4 | – | – | 52.8 | 39.4 | – | ||||||||||||||||||
Balance sheet statistics (CHF million) | ||||||||||||||||||||||||||
Total assets | 107,929 | 109,447 | 111,010 | (1) | (3) | 107,929 | 111,010 | (3) | ||||||||||||||||||
Net loans | 99,241 | 97,256 | 94,514 | 2 | 5 | 99,241 | 94,514 | 5 | ||||||||||||||||||
Goodwill | 181 | 181 | 181 | 0 | 0 | 181 | 181 | 0 | ||||||||||||||||||
Number of employees (full-time equivalents) | ||||||||||||||||||||||||||
Number of employees | 8,900 | 8,900 | 8,800 | 0 | 1 | 8,900 | 8,800 | 1 | ||||||||||||||||||
1 Calculated using a return excluding interest costs for allocated goodwill. |
Results (continued) | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Net revenue detail (CHF million) | ||||||||||||||||||||||||||
Net interest income | 587 | 587 | 582 | 0 | 1 | 2,342 | 2,179 | 7 | ||||||||||||||||||
Total non-interest income | 415 | 394 | 314 | 5 | 32 | 1,597 | 1,318 | 21 | ||||||||||||||||||
Net revenues | 1,002 | 981 | 896 | 2 | 12 | 3,939 | 3,497 | 13 | ||||||||||||||||||
Number of branches | ||||||||||||||||||||||||||
Number of branches | 216 | 216 | 215 | 0 | 0 | 216 | 215 | 0 | ||||||||||||||||||
Asset Management |
Results | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Statements of income (CHF million) | ||||||||||||||||||||||||||
Net revenues1 | 354 | 594 | 738 | (40) | (52) | 2,577 | 2,861 | (10) | ||||||||||||||||||
Provision for credit losses | (1) | 0 | 1 | – | – | (1) | 1 | – | ||||||||||||||||||
Compensation and benefits2 | 308 | 287 | 327 | 7 | (6) | 1,205 | 1,129 | 7 | ||||||||||||||||||
General and administrative expenses3 | 185 | 167 | 211 | 11 | (12) | 609 | 853 | (29) | ||||||||||||||||||
Commission expenses | 109 | 95 | 110 | 15 | (1) | 410 | 370 | 11 | ||||||||||||||||||
Total other operating expenses | 294 | 262 | 321 | 12 | (8) | 1,019 | 1,223 | (17) | ||||||||||||||||||
Total operating expenses | 602 | 549 | 648 | 10 | (7) | 2,224 | 2,352 | (5) | ||||||||||||||||||
Income from continuing operations before taxes | (247) | 45 | 89 | – | – | 354 | 508 | (30) | ||||||||||||||||||
Statement of income metrics (%) | ||||||||||||||||||||||||||
Compensation/revenue ratio | 87.0 | 48.3 | 44.3 | – | – | 46.8 | 39.5 | – | ||||||||||||||||||
Non-compensation/revenue ratio | 83.1 | 44.1 | 43.5 | – | – | 39.5 | 42.7 | – | ||||||||||||||||||
Cost/income ratio | 170.1 | 92.4 | 87.8 | – | – | 86.3 | 82.2 | – | ||||||||||||||||||
Pre-tax income margin | (69.8) | 7.6 | 12.1 | – | – | 13.7 | 17.8 | – | ||||||||||||||||||
Utilized economic capital and return | ||||||||||||||||||||||||||
Average utilized economic capital (CHF million) | 1,932 | 1,689 | 1,539 | 14 | 26 | 1,677 | 1,479 | 13 | ||||||||||||||||||
Pre-tax return on average utilized economic capital (%)4 | (48.6) | 13.9 | 30.2 | – | – | 24.3 | 41.8 | – | ||||||||||||||||||
Balance sheet statistics (CHF million) | ||||||||||||||||||||||||||
Total assets | 27,784 | 32,457 | 20,448 | (14) | 36 | 27,784 | 20,448 | 36 | ||||||||||||||||||
Goodwill | 2,442 | 2,332 | 2,423 | 5 | 1 | 2,442 | 2,423 | 1 | ||||||||||||||||||
Number of employees (full-time equivalents) | ||||||||||||||||||||||||||
Number of employees | 3,600 | 3,400 | 3,400 | 6 | 6 | 3,600 | 3,400 | 6 | ||||||||||||||||||
1 Includes valuation reductions of CHF 774 million, CHF 146 million and CHF 920 million in 4Q07, 3Q07 and 2007, respectively, from securities purchased from our money market funds. 2 Includes CHF 20 million and CHF 53 million in 4Q06 and 2006, respectively, of severance costs relating to the realignment. 3 Includes CHF 13 million and CHF 140 million in 4Q06 and 2006, respectively, of intangible asset impairments and CHF 32 million in 2006 of professional fees relating to the realignment. 4 Calculated using a return excluding interest costs for allocated goodwill. |
Results (continued) | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Net revenue detail (CHF million) | ||||||||||||||||||||||||||
Fixed income and money market | 79 | 103 | 75 | (23) | 5 | 373 | 321 | 16 | ||||||||||||||||||
Equity | 106 | 85 | 105 | 25 | 1 | 408 | 430 | (5) | ||||||||||||||||||
Balanced | 210 | 186 | 181 | 13 | 16 | 771 | 674 | 14 | ||||||||||||||||||
Private equity1 | 101 | 91 | 80 | 11 | 26 | 312 | 236 | 32 | ||||||||||||||||||
Diversified strategies2 | 119 | 89 | 76 | 34 | 57 | 380 | 273 | 39 | ||||||||||||||||||
Fund and alternative solutions3 | 99 | 87 | 92 | 14 | 8 | 353 | 341 | 4 | ||||||||||||||||||
Alternative investments | 319 | 267 | 248 | 19 | 29 | 1,045 | 850 | 23 | ||||||||||||||||||
Other | 109 | 40 | 37 | 173 | 195 | 219 | 84 | 161 | ||||||||||||||||||
Net revenues before private equity and other investment-related gains and securities purchased from our money market funds | 823 | 681 | 646 | 21 | 27 | 2,816 | 2,359 | 19 | ||||||||||||||||||
Private equity and other investment-related gains | 305 | 59 | 92 | 417 | 232 | 681 | 502 | 36 | ||||||||||||||||||
Net revenues before securities purchased from our money market funds | 1,128 | 740 | 738 | 52 | 53 | 3,497 | 2,861 | 22 | ||||||||||||||||||
Securities purchased from our money market funds | (774) | (146) | 0 | 430 | – | (920) | 0 | – | ||||||||||||||||||
Net revenues | 354 | 594 | 738 | (40) | (52) | 2,577 | 2,861 | (10) | ||||||||||||||||||
Gross and net margin on assets under management (bp) | ||||||||||||||||||||||||||
Gross margin before private equity and other investment-related gains and securities purchased from our money market funds | 47 | 37 | 39 | – | – | 39 | 37 | & ndash; | ||||||||||||||||||
Gross margin on private equity and other investment-related gains | 17 | 3 | 5 | – | – | 10 | 8 | – | ||||||||||||||||||
Gross margin before securities purchased from our money market funds | 64 | 40 | 44 | – | – | 49 | 45 | – | ||||||||||||||||||
Gross margin on securities purchased from our money market funds | (44) | (8) | 0 | – | – | (13) | 0 | – | ||||||||||||||||||
Gross margin | 20 | 32 | 44 | – | – | 36 | 45 | – | ||||||||||||||||||
Net margin (pre-tax) | (14) | 2 | 5 | – | – | 5 | 8 | – | ||||||||||||||||||
1 Includes private equity fees and commissions and alternative investment joint ventures. 2 Includes real estate, leveraged investments and Volaris. 3 Includes fund of hedge funds and quantitative strategies. |
Results before securities purchased from our money market funds | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Statements of income (CHF million) | ||||||||||||||||||||||||||
Net revenues | 1,128 | 740 | 738 | 52 | 53 | 3,497 | 2,861 | 22 | ||||||||||||||||||
Provision for credit losses | (1) | 0 | 1 | – | – | (1) | 1 | – | ||||||||||||||||||
Compensation and benefits | 308 | 287 | 327 | 7 | (6) | 1,205 | 1,129 | 7 | ||||||||||||||||||
Total other operating expenses | 294 | 262 | 321 | 12 | (8) | 1,019 | 1,223 | (17) | ||||||||||||||||||
Total operating expenses | 602 | 549 | 648 | 10 | (7) | 2,224 | 2,352 | (5) | ||||||||||||||||||
Income from continuing operations before taxes | 527 | 191 | 89 | 176 | 492 | 1,274 | 508 | 151 | ||||||||||||||||||
Statement of income metrics (%) | ||||||||||||||||||||||||||
Compensation/revenue ratio | 27.3 | 38.8 | 44.3 | – | – | 34.5 | 39.5 | – | ||||||||||||||||||
Non-compensation/revenue ratio | 26.1 | 35.4 | 43.5 | – | – | 29.1 | 42.7 | – | ||||||||||||||||||
Cost/income ratio | 53.4 | 74.2 | 87.8 | – | – | 63.6 | 82.2 | – | ||||||||||||||||||
Pre-tax income margin | 46.7 | 25.8 | 12.1 | – | – | 36.4 | 17.8 | – | ||||||||||||||||||
Gross and net margin on assets under management (bp) | ||||||||||||||||||||||||||
Gross margin | 64 | 40 | 44 | – | – | 49 | 45 | – | ||||||||||||||||||
Net margin (pre-tax) | 30 | 10 | 5 | – | – | 18 | 8 | – | ||||||||||||||||||
Securities purchased from our money market funds | |||||||||||||||||||||||
Purchased in 3Q07 | Gains/ (losses) in 3Q07 | Purchased in 4Q07 | Gains/ (losses) in 4Q07 | Sold | Matured/ restruc- tured | Fair value end of 4Q07 | |||||||||||||||||
Commercial paper, bonds and other securities issued by (CHF million) | |||||||||||||||||||||||
Structured investment vehicles | 5,233 | (82) | 57 | (379) | (104) | (2,244) | 2,481 | ||||||||||||||||
Asset-backed securities vehicles | 473 | (30) | 558 | (295) | (584) | 904 | 1 | 1,026 | |||||||||||||||
Corporates | 2,533 | (34) | 432 | (100) | (213) | (2,204) | 414 | ||||||||||||||||
Total | 8,239 | (146) | 1,047 | (774) | (901) | (3,544) | 3,921 | 2 | |||||||||||||||
1 Includes securities of CHF 1,001 million, at amortized cost, received in lieu of payment from a restructured asset-backed vehicle. The fair value of these securities as of the end of 4Q07 was CHF 576 million. 2 Includes US subprime-related of CHF 419 million. |
Revenue details on securities purchased from our money market funds | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Revenue details (CHF million) | ||||||||||||||||||||||||||
Realized gains/(losses) | (101) | (12) | 0 | – | – | (113) | 0 | – | ||||||||||||||||||
Unrealized gains/(losses) | (673) | (134) | 0 | 402 | – | (807) | 0 | – | ||||||||||||||||||
Securities purchased from our money market funds | (774) | (146) | 0 | 430 | – | (920) | 0 | – | ||||||||||||||||||
Assets under management | ||||||||||||||||||||||||||
in / end of | % change | in / end of | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Assets under management (CHF billion) | ||||||||||||||||||||||||||
Fixed income and money market | 178.7 | 210.9 | 208.3 | (15.3) | (14.2) | 178.7 | 208.3 | (14.2) | ||||||||||||||||||
Equity | 38.1 | 43.8 | 47.0 | (13.0) | (18.9) | 38.1 | 47.0 | (18.9) | ||||||||||||||||||
Balanced | 284.0 | 289.2 | 270.2 | (1.8) | 5.1 | 284.0 | 270.2 | 5.1 | ||||||||||||||||||
Private equity1 | 34.8 | 33.9 | 30.2 | 2.7 | 15.2 | 34.8 | 30.2 | 15.2 | ||||||||||||||||||
Diversified strategies2 | 66.2 | 62.7 | 46.4 | 5.6 | 42.7 | 66.2 | 46.4 | 42.7 | ||||||||||||||||||
Fund and alternative solutions3 | 64.4 | 64.5 | 60.7 | 0.0 | 6.1 | 64.4 | 60.7 | 6.1 | ||||||||||||||||||
Alternative investments | 165.4 | 161.1 | 137.3 | 2.7 | 20.5 | 165.4 | 137.3 | 20.5 | ||||||||||||||||||
Other | 25.1 | 9.1 | 7.1 | 175.8 | 253.5 | 25.1 | 7.1 | 253.5 | ||||||||||||||||||
Assets under management | 691.3 | 714.1 | 669.9 | (3.2) | 3.2 | 691.3 | 669.9 | 3.2 | ||||||||||||||||||
of which discretionary assets | 593.3 | 610.9 | 573.7 | (2.9) | 3.4 | 593.3 | 573.7 | 3.4 | ||||||||||||||||||
of which advisory assets | 98.0 | 103.2 | 96.2 | (5.0) | 1.9 | 98.0 | 96.2 | 1.9 | ||||||||||||||||||
Growth in assets under management (CHF billion) | ||||||||||||||||||||||||||
Net new assets | (24.9) | (20.9) | (2.9) | – | – | 3.6 | 50.8 | – | ||||||||||||||||||
Acquisitions and divestitures | 16.6 | 0.0 | 0.6 | – | – | 16.6 | 6.4 | – | ||||||||||||||||||
Market movements and investment performance | (2.3) | (7.0) | 14.9 | – | – | 14.9 | 30.6 | – | ||||||||||||||||||
Currency | (12.5) | (6.7) | (2.3) | – | – | (12.2) | (7.2) | – | ||||||||||||||||||
Other | 0.3 | (0.9) | 0.0 | – | – | (1.5) | 4 | (0.1) | – | |||||||||||||||||
Total other effects | 2.1 | (14.6) | 13.2 | – | – | 17.8 | 29.7 | – | ||||||||||||||||||
Growth in assets under management | (22.8) | (35.5) | 10.3 | &ndas h; | – | 21.4 | 80.5 | – | ||||||||||||||||||
Growth in assets under management (%) | ||||||||||||||||||||||||||
Net new assets | (13.9) | (11.2) | (1.8) | – | – | 0.5 | 8.6 | – | ||||||||||||||||||
Total other effects | 1.2 | (7.8) | 8.0 | – | – | 2.7 | 4 | 5.0 | – | |||||||||||||||||
Growth in assets under management | (12.7) | (19.0) | 6.2 | &ndash ; | – | 3.2 | 13.6 | – | ||||||||||||||||||
Growth in assets under management (rolling four-quarter average) (%) | ||||||||||||||||||||||||||
Net new assets | 0.5 | 3.9 | 8.6 | – | – | – | – | – | ||||||||||||||||||
Total other effects | 2.7 | 4.4 | 5.0 | – | – | – | – | – | ||||||||||||||||||
Growth in assets under management (rolling four-quarter average) | 3.2 | 8.3 | 13.6 | – | – | – | – | – | ||||||||||||||||||
Private equity investments (CHF billion) | ||||||||||||||||||||||||||
Private equity investments | 3.3 | 3.0 | 2.5 | 10.0 | 32.0 | 3.3 | 2.5 | 32.0 | ||||||||||||||||||
The classification of assets is based upon the classification of the fund manager. | ||||||||||||||||||||||||||
1 Includes alternative investment joint ventures. 2 Includes real estate, leveraged investments and Volaris. 3 Includes fund of hedge funds and quantitative strategies. 4 Includes outflows as a result of the sale of the insurance business. |
Overview of Results and Assets under Management |
Results |
Assets under Management |
Results |
Investment Banking | Private Banking | Asset Management | Corporate Center | Core Results | 1 | Cred it Suisse | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wealth Management | Corporate & Retail Banking | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in / end of period | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Statements of income (CHF million) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 2,741 | 2 | 2,097 | 6,085 | 2,476 | 2,344 | 2,077 | 1,002 | 981 | 896 | 3,478 | 3,325 | 2,973 | 354 | 3 | 594 | 738 | (12) | 4 | 20 | 6,561 | 6,020 | 9 ,816 | 8,236 | 6,842 | 10,814 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses | 210 | 20 | 20 | 2 | (1) | (17) | (8) | (16) | (24) | (6) | (17) | (41) | (1) | 0 | 1 | 0 | 1 | 0 | 203 | 4 | (20) | 203 | 4 | (20) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 2,080 | 839 | 2,566 | 778 | 812 | 714 | 320 | 340 | 323 | 1,098 | 1,152 | 1,037 | 308 | 287 | 327 | 4 | (29) | 76 | 117 | 3,457 | 2,354 | 4,047 | 3,468 | 2,392 | 4,100 | |||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 941 | 864 | 847 | 513 | 437 | 403 | 255 | 236 | 233 | 768 | 673 | 636 | 185 | 167 | 211 | 5 | 110 | 8 | 103 | 2,004 | 1,712 | 1,797 | 2,022 | 1,743 | 1,815 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commission expenses | 359 | 368 | 310 | 207 | 196 | 166 | 34 | 32 | 32 | 241 | 228 | 198 | 109 | 95 | 110 | (15) | (24) | (13) | 694 | 667 | 605 | 694 | 667 | 605 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total other operating expenses | 1,300 | 1,232 | 1,157 | 720 | 633 | 569 | 289 | 268 | 265 | 1,009 | 901 | 834 | 294 | 262 | 321 | 95 | (16) | 90 | 2,698 | 2,379 | 2,402 | 2,716 | 2,410 | 2,420 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 3,380 | 2,071 | 3,723 | 1,498 | 1,445 | 1,283 | 609 | 608 | 588 | 2,107 | 2,053 | 1,871 | 602 | 549 | 648 | 66 | 60 | 207 | 6,155 | 4,733 | 6,449 | 6,184 | 4,802 | 6,520 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income/(loss) from continuing operations before taxes | (849) | 6 | 2,342 | 976 | 900 | 811 | 401 | 389 | 332 | 1,377 | 1,289 | 1,143 | (247) | 45 | 89 | (78) | (57) | (187) | 203 | 1,283 | 3,387 | 1,849 | 2,036 | 4,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | (403) | (32) | 805 | (403) | (32) | 805 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Minority interests | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | 66 | 13 | (17) | 1,712 | 766 | 910 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | 540 | 1,302 | 2,599 | 540 | 1,302 | 2,599 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | 0 | 0 | 2,074 | 0 | 0 | 2,074 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | – | – | – | &nd ash; | – | – | – | – | – | – | – | – | – | – | – | – | – | – | 540 | 1,302 | 4,673 | 540 | 1,302 | 4,673 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Statement of income metrics (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation/revenue ratio | 75.9 | 40.0 | 42.2 | 31.4 | 34.6 | 34.4 | 31.9 | 34.7 | 36.0 | 31.6 | 34.6 | 34.9 | 87.0 | 48.3 | 44.3 | – | – | – | 52.7 | 39.1 | 41.2 | 42.1 | 35.0 | 37.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-compensation/revenue ratio | 47.4 | 58.8 | 19.0 | 29.1 | 27.0 | 27.4 | 28.8 | 27.3 | 29.6 | 29.0 | 27.1 | 28.1 | 83.1 | 44.1 | 43.5 | – | – | – | 41.1 | 39.5 | 24.5 | 33.0 | 35.2 | 22.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost/income ratio | 123.3 | 98.8 | 61.2 | 60.5 | 61.6 | 61.8 | 60.8 | 62.0 | 65.6 | 60.6 | 61.7 | 62.9 | 170.1 | 92.4 | 87.8 | – | – | – | 93.8 | 78.6 | 65.7 | 75.1 | 70.2 | 60.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax income margin | (31.0) | 0.3 | 38.5 | 39.4 | 38.4 | 39.0 | 40.0 | 39.7 | 37.1 | 39.6 | 38.8 | 38.4 | (69.8) | 7.6 | 12.1 | – | – | – | 3.1 | 21.3 | 34.5 | 22.5 | 29.8 | 39.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax rate | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | (198.5) | (2.5) | 23.8 | (21.8) | (1.6) | 18.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income margin from continuing operations | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | 8.2 | 21.6 | 26.5 | 6.6 | 19.0 | 24.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income margin | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | 8.2 | 21.6 | 47.6 | 6.6 | 19.0 | 43.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Utilized economic capital and return | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average utilized economic capital (CHF million) | 19,182 | 6 | 19,111 | 19,087 | 1,724 | 1,664 | 1,486 | 3,061 | 3,030 | 3,379 | 4,785 | 4,694 | 4,865 | 1,932 | 1,689 | 1,539 | 369 | 7 | 803 | 7 | 1,592 | 7 | 26,261 | 6 | 26,277 | 26,880 | 26,261 | 6 | 26,277 | 26,880 | ||||||||||||||||||||||||||||||||||||||||||||
Pre-tax return on average utilized economic capital (%)8 | (16.7) | 6 | 1.3 | 51.4 | 228.6 | 218.8 | 223.6 | 52.5 | 51.3 | 39.4 | 115.9 | 110.7 | 95.7 | (48.6) | 13.9 | 30.2 | – | – | – | 4.2 | 6 | 20.7 | 52.8 | 29.2 | 6 | 32.2 | 66.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Post-tax return on average utilized economic capital from continuing operations (%)8 | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | 9.1 | 20.8 | 40.5 | 9.1 | 20.8 | 40.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Post-tax return on average utilized economic capital (%)8 | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | – | 9.1 | 20.8 | 71.4 | 9.1 | 20.8 | 71.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance sheet statistics (CHF million) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | 1,140,740 | 1,156,573 | 1,046,557 | 268,871 | 261,277 | 229,731 | 107,929 | 109,447 | 111,010 | 376,800 | 370,724 | 340,741 | 27,784 | 32,457 | 20,448 | (201,947) | (198,677) | (167,794) | 1,343,377 | 1,361,077 | 1,239,952 | 1,360,680 | 1,376,442 | 1,255,956 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loans | 64,892 | 53,097 | 44,285 | 76,265 | 76,093 | 69,156 | 99,241 | 97,256 | 94,514 | 175,506 | 173,349 | 163,670 | – | – | – | 136 | 513 | 172 | 240,534 | 226,959 | 208,127 | 240,534 | 226,959 | 208,127 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 7,465 | 7,551 | 7,809 | 794 | 613 | 610 | 181 | 181 | 181 | 975 | 794 | 791 | 2,442 | 2,332 | 2,423 | – | – | – | 10,882 | 10,677 | 11,023 | 10,882 | 10,677 | 11,023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of employees (full-time equivalents) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of employees | 20,600 | 20,300 | 18,700 | 14,300 | 13,900 | 13,400 | 8,900 | 8,900 | 8,800 | 23,200 | 22,800 | 22,200 | 3,600 | 3,400 | 3,400 | 700 | 700 | 600 | 48,100 | 47,200 | 44,900 | 48,100 | 47,200 | 44,900 | ||||||||||||||||||||||||||||||||||||||||||||||||||
1 Core Results include the results of our integrated banking business, excluding revenues and expenses in respect of minority interests without significant economic interest. 2 Includes valuation reductions of CHF 2,436 million relating to leveraged finance and structured products. 3 Includes valuation reductions of CHF 774 million from securities purchased from our money market funds. 4 Includes CHF 20 million of severance costs relating to the realignment. 5 Includes CHF 13 million of intangible asset impairments relating to the realignment. 6 Does not reflect the valuation reductions from revaluing certain ABS posi tions in our CDO trading business, as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends. For further information, refer to Risk Management – Revaluation impact on risk metrics. 7 Includes diversification benefit. 8 Calculated using a return excluding interest costs for allocated goodwill. |
Assets under Management |
Assets under management and client assets | |||||||||||||||||
end of | % change | ||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | |||||||||||||
Assets under management (CHF billion) | |||||||||||||||||
Wealth Management | 838.6 | 834.7 | 784.2 | 0.0 | 6.9 | ||||||||||||
Corporate & Retail Banking | 156.8 | 157.0 | 156.1 | 0.0 | 0.0 | ||||||||||||
Private Banking | 995.4 | 991.7 | 940.3 | 0.0 | 5.9 | ||||||||||||
Asset Management | 691.3 | 714.1 | 669.9 | (3.2) | 3.2 | ||||||||||||
Assets managed on behalf of other segments | (132.0) | (134.5) | (125.1) | (1.9) | 5.5 | ||||||||||||
Assets under management | 1,554.7 | 1,571.3 | 1,485.1 | (1.1) | 4.7 | ||||||||||||
of which discretionary assets | 678.8 | 701.4 | 656.2 | (3.2) | 3.4 | ||||||||||||
of which advisory assets | 875.9 | 869.9 | 828.9 | 0.7 | 5.7 | ||||||||||||
Client assets (CHF billion) | |||||||||||||||||
Wealth Management | 928.8 | 920.0 | 848.0 | 1.0 | 9.5 | ||||||||||||
Corporate & Retail Banking | 230.6 | 234.1 | 221.7 | (1.5) | 4.0 | ||||||||||||
Private Banking | 1,159.4 | 1,154.1 | 1,069.7 | 0.0 | 8.4 | ||||||||||||
Asset Management | 721.7 | 749.3 | 676.4 | (3.7) | 6.7 | ||||||||||||
Assets managed on behalf of other segments | (132.0) | (134.5) | (125.1) | (1.9) | 5.5 | ||||||||||||
Client assets | 1,749.1 | 1,768.9 | 1,621.0 | (1.1) | 7.9 | ||||||||||||
Growth in assets under management | ||||||||||||||||||||||||||
in | % change | in | % change | |||||||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | 2007 | 2006 | YoY | |||||||||||||||||||
Growth in assets under management (CHF billion) | ||||||||||||||||||||||||||
Wealth Management | 12.0 | 9.7 | 8.6 | – | – | 50.2 | 50.5 | – | ||||||||||||||||||
Corporate & Retail Banking | 2.1 | 2.4 | 1.1 | – | – | 3.3 | 1.7 | – | ||||||||||||||||||
Private Banking | 14.1 | 12.1 | 9.7 | – | – | 53.5 | 52.2 | – | ||||||||||||||||||
Asset Management | (24.9) | (20.9) | (2.9) | – | – | 3.6 | 50.8 | – | ||||||||||||||||||
Assets managed on behalf of other segments | 0.3 | (0.9) | 0.1 | – | – | (6.7) | (7.6) | – | ||||||||||||||||||
Net new assets | (10.5) | (9.7) | 6.9 | – | – | 50.4 | 95.4 | – | ||||||||||||||||||
Wealth Management | (8.1) | (35.5) | 1 | 22.4 | – | – | 4.2 | 1 | 40.4 | – | ||||||||||||||||
Corporate & Retail Banking | (2.2) | (1.1) | 4.0 | – | – | (2.5) | 10.1 | – | ||||||||||||||||||
Private Banking | (10.3) | (36.6) | 26.4 | – | – | 1.7 | 50.5 | – | ||||||||||||||||||
Asset Management | 2.1 | (14.6) | 13.2 | – | – | 17.8 | 2 | 29.7 | – | |||||||||||||||||
Assets managed on behalf of other segments | 2.1 | 3.2 | (2.7) | – | – | (0.3) | (9.9) | – | ||||||||||||||||||
Other effects | (6.1) | (48.0) | 36.9 | – | – | 19.2 | 70.3 | – | ||||||||||||||||||
Wealth Management | 3.9 | (25.8) | 31.0 | – | – | 54.4 | 90.9 | – | ||||||||||||||||||
Corporate & Retail Banking | (0.1) | 1.3 | 5.1 | – | – | 0.8 | 11.8 | – | ||||||||||||||||||
Private Banking | 3.8 | (24.5) | 36.1 | – | – | 55.2 | 102.7 | – | ||||||||||||||||||
Asset Management | (22.8) | (35.5) | 10.3 | – | – | 21.4 | 80.5 | – | ||||||||||||||||||
Assets managed on behalf of other segments | 2.4 | 2.3 | (2.6) | – | – | (7.0) | (17.5) | – | ||||||||||||||||||
Growth in assets under management | (16.6) | (57.7) | 43.8 | &ndas h; | – | 69.6 | 165.7 | – | ||||||||||||||||||
Growth in assets under management (%) | ||||||||||||||||||||||||||
Wealth Management | 5.7 | 4.5 | 4.6 | – | – | 6.4 | 7.3 | – | ||||||||||||||||||
Corporate & Retail Banking | 5.3 | 6.0 | 2.9 | – | – | 2.1 | 1.2 | – | ||||||||||||||||||
Private Banking | 5.7 | 4.8 | 4.3 | – | – | 5.7 | 6.2 | – | ||||||||||||||||||
Asset Management | (13.9) | (11.2) | (1.8) | – | – | 0.5 | 8.6 | – | ||||||||||||||||||
Assets managed on behalf of other segments | (0.9) | 2.6 | (0.3) | – | – | 5.4 | 7.1 | – | ||||||||||||||||||
Net new assets | (2.7) | (2.4) | 1.9 | – | – | 3.4 | 7.2 | – | ||||||||||||||||||
Wealth Management | (3.9) | (16.5) | 1 | 11.9 | – | – | 0.5 | 1 | 5.8 | – | ||||||||||||||||
Corporate & Retail Banking | (5.6) | (2.8) | 10.6 | – | – | (1.6) | 7.0 | – | ||||||||||||||||||
Private Banking | (4.2) | (14.4) | 11.7 | – | – | 0.2 | 6.0 | – | ||||||||||||||||||
Asset Management | 1.2 | (7.8) | 8.0 | – | – | 2.7 | 2 | 5.0 | – | |||||||||||||||||
Assets managed on behalf of other segments | (6.2) | (9.2) | 8.8 | – | – | 0.2 | 9.2 | – | ||||||||||||||||||
Other effects | (1.5) | (11.8) | 10.2 | – | – | 1.3 | 5.3 | – | ||||||||||||||||||
Wealth Management | 1.8 | (12.0) | 16.5 | – | – | 6.9 | 13.1 | – | ||||||||||||||||||
Corporate & Retail Banking | (0.3) | 3.2 | 13.5 | – | – | 0.5 | 8.2 | – | ||||||||||||||||||
Private Banking | 1.5 | (9.6) | 16.0 | – | – | 5.9 | 12.2 | – | ||||||||||||||||||
Asset Management | (12.7) | (19.0) | 6.2 | – | – | 3.2 | 13.6 | – | ||||||||||||||||||
Assets managed on behalf of other segments | (7.1) | (6.6) | 8.5 | – | – | 5.6 | 16.3 | – | ||||||||||||||||||
Growth in assets under management | (4.2) | (14.2) | 12.1 | – | – | 4.7 | 12.5 | – | ||||||||||||||||||
1 The reduction in assets under management also reflects CHF 21.6 billion of corporate cash now reported only in client assets. 2 Includes outflows as a result of the sale of the insurance business. |
Growth in assets under management (continued) | |||||||||||||||||
in | % change | ||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | |||||||||||||
Growth in assets under management (rolling four-quarter average) (%) | |||||||||||||||||
Wealth Management | 6.4 | 6.2 | 7.3 | – | – | ||||||||||||
Corporate & Retail Banking | 2.1 | 1.5 | 1.2 | – | – | ||||||||||||
Private Banking | 5.7 | 5.4 | 6.2 | – | – | ||||||||||||
Asset Management | 0.5 | 3.9 | 8.6 | – | – | ||||||||||||
Assets managed on behalf of other segments | 5.4 | 5.6 | 7.1 | – | – | ||||||||||||
Net new assets | 3.4 | 4.7 | 7.2 | – | – | ||||||||||||
Assets under management by currency | |||||||||||||||||
end of period | USD | EUR | CHF | Other | Total | ||||||||||||
4Q07 (CHF billion) | |||||||||||||||||
Wealth Management | 333.8 | 244.3 | 156.1 | 104.4 | 838.6 | ||||||||||||
Asset Management | 206.4 | 105.9 | 297.9 | 81.1 | 691.3 | ||||||||||||
4Q07 (% of total) | |||||||||||||||||
Wealth Management | 39.8 | 29.1 | 18.6 | 12.5 | 100.0 | ||||||||||||
Asset Management | 29.9 | 15.3 | 43.1 | 11.7 | 100.0 | ||||||||||||
Balance Sheet, Capital and Risk |
Balance Sheet |
Capital Management |
Risk Management |
Balance Sheet |
Balance sheet summary | |||||||||||||||||
end of | % change | ||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | |||||||||||||
Assets (CHF million) | |||||||||||||||||
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions | 296,709 | 324,323 | 319,048 | (9) | (7) | ||||||||||||
Trading assets | 532,083 | 531,100 | 450,780 | 0 | 18 | ||||||||||||
Net loans | 240,534 | 226,959 | 208,127 | 6 | 16 | ||||||||||||
All other assets | 291,354 | 294,060 | 278,001 | (1) | 5 | ||||||||||||
Total assets | 1,360,680 | 1,376,442 | 1,255,956 | (1) | 8 | ||||||||||||
Liabilities and shareholders' equity (CHF million) | |||||||||||||||||
Due to banks | 90,864 | 101,294 | 97,514 | (10) | (7) | ||||||||||||
Customer deposits | 335,505 | 334,467 | 290,864 | 0 | 15 | ||||||||||||
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions | 300,381 | 302,638 | 288,444 | (1) | 4 | ||||||||||||
Trading liabilities | 201,809 | 224,412 | 198,422 | (10) | 2 | ||||||||||||
Long-term debt | 160,157 | 162,797 | 147,832 | (2) | 8 | ||||||||||||
All other liabilities | 228,765 | 208,869 | 189,294 | 10 | 21 | ||||||||||||
Total liabilities | 1,317,481 | 1,334,477 | 1,212,370 | (1) | 9 | ||||||||||||
Total shareholders' equity | 43,199 | 41,965 | 43,586 | 3 | (1) | ||||||||||||
Total liabilities and shareholders' equity | 1,360,680 | 1,376,442 | 1,255,956 | (1) | 8 | ||||||||||||
Capital Management |
Capital | |||||||||||||||||
end of | % change | ||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | |||||||||||||
Shares outstanding (million) | |||||||||||||||||
Common shares issued | 1,162.4 | 1,162.2 | 1,214.9 | 0 | (4) | ||||||||||||
Second trading line treasury shares1 | (46.1) | (42.2) | (42.4) | 9 | 9 | ||||||||||||
Other treasury shares | (95.7) | (99.4) | (110.0) | (4) | (13) | ||||||||||||
Treasury shares | (141.8) | (141.6) | (152.4) | 0 | (7) | ||||||||||||
Shares outstanding | 1,020.6 | 1,020.6 | 1,062.5 | 0 | (4) | ||||||||||||
Par value (CHF) | |||||||||||||||||
Par value2 | 0.04 | 0.04 | 0.50 | 0 | (92) | ||||||||||||
Shareholders' equity (CHF million) | |||||||||||||||||
Common shares | 46 | 46 | 607 | 0 | (92) | ||||||||||||
Additional paid-in capital | 24,553 | 24,010 | 24,817 | 2 | (1) | ||||||||||||
Retained earnings | 33,670 | 33,127 | 32,306 | 2 | 4 | ||||||||||||
Second trading line treasury shares, at cost | (3,918) | (3,641) | (3,077) | 8 | 27 | ||||||||||||
Other treasury shares, at cost | (5,460) | (5,726) | (6,034) | (5) | (10) | ||||||||||||
Treasury shares, at cost | (9,378) | (9,367) | (9,111) | 0 | 3 | ||||||||||||
Accumulated other comprehensive income | (5,692) | (5,851) | (5,033) | (3) | 13 | ||||||||||||
Total shareholders' equity | 43,199 | 41,965 | 43,586 | 3 | (1) | ||||||||||||
Goodwill | (10,882) | (10,677) | (11,023) | 2 | (1) | ||||||||||||
Other intangible assets | (444) | (507) | (476) | (12) | (7) | ||||||||||||
Tangible shareholders' equity3 | 31,873 | 30,781 | 32,087 | 4 | (1) | ||||||||||||
Book value per share (CHF) | |||||||||||||||||
Total book value per share | 42.33 | 41.12 | 41.02 | 3 | 3 | ||||||||||||
Goodwill per share | (10.66) | (10.46) | (10.37) | 2 | 3 | ||||||||||||
Other intangible assets per share | (0.44) | (0.50) | (0.45) | (12) | (3) | ||||||||||||
Tangible book value per share | 31.23 | 30.16 | 30.20 | 4 | 3 | ||||||||||||
1 These shares are repurchased in connection with our share buyback program and will be subsequently cancelled, subject to shareholder approval. 2 On May 4, 2007, the shareholders of Credit Suisse Group approved a par value reduction of CHF 0.46 per share which was paid out on July 18, 2007. 3 Tangible shareholders' equity is calculated by deducting goodwill and other intangible assets from total shareholders' equity. Management believes that the return on tangible shareholders' equity is meaningful as it allows for the consistent measurement of the performance of businesses without regard to whether the businesses were acquired. |
BIS statistics | |||||||||||||||||
end of | % change | ||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | |||||||||||||
Risk-weighted assets (CHF million) | |||||||||||||||||
Risk-weighted positions | 277,528 | 278,679 | 240,095 | 0 | 16 | ||||||||||||
Market risk equivalents | 34,540 | 1 | 20,009 | 13,581 | 73 | 154 | |||||||||||
Risk-weighted assets | 312,068 | 298,688 | 253,676 | 4 | 23 | ||||||||||||
Capital (CHF million) | |||||||||||||||||
Total shareholders' equity | 43,199 | 41,965 | 43,586 | 3 | (1) | ||||||||||||
Goodwill | (10,882) | (10,677) | (11,023) | 2 | (1) | ||||||||||||
Investments in insurance entities (50%) | (71) | (90) | (22) | (21) | 223 | ||||||||||||
Non-cumulative perpetual preferred securities and capital notes | 4,136 | 4,180 | 2,167 | (1) | 91 | ||||||||||||
Other adjustments | (1,645) | 510 | 439 | – | – | ||||||||||||
Tier 1 capital2 | 34,737 | 35,888 | 35,147 | (3) | (1) | ||||||||||||
Upper tier 2 | 2,860 | 2,906 | 4,733 | (2) | (40) | ||||||||||||
Lower tier 2 | 8,565 | 8,064 | 8,587 | 6 | 0 | ||||||||||||
Tier 2 capital | 11,425 | 10,970 | 13,320 | 4 | (14) | ||||||||||||
Investments in non-consolidated banking and finance participations and credit enhancements | (989) | (1,086) | (1,681) | (9) | (41) | ||||||||||||
Investments in insurance entities (50%) | (71) | (90) | (22) | (21) | 223 | ||||||||||||
Total capital | 45,102 | 45,682 | 46,764 | (1) | (4) | ||||||||||||
Capital ratios (%) | |||||||||||||||||
Tier 1 ratio | 11.1 | 12.0 | 13.9 | – | – | ||||||||||||
Total capital ratio | 14.5 | 15.3 | 18.4 | – | – | ||||||||||||
1 Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business, as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends. For further information, refer to Risk Management – Revaluation impact on risk metrics. 2 The Swiss Federal Banking Commission (EBK) has advised that Credit Suisse Group may continue to include as tier 1 capital CHF 1.8 billion, CHF 1.9 billion and CHF 2.2 billion in 4Q07, 3Q07 and 4Q06, respectively, of equity from special purpose entities which are deconsolidated under FIN 46(R). |
Economic capital | |||||||||||||||||
in / end of | % change | ||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | |||||||||||||
Economic capital resources (CHF million) | |||||||||||||||||
Tier 1 capital | 34,737 | 35,888 | 35,147 | (3) | (1) | ||||||||||||
Economic adjustments | 4,768 | 3,842 | 4,971 | 24 | (4) | ||||||||||||
Economic capital resources | 39,505 | 39,730 | 40,118 | (1) | (2) | ||||||||||||
Utilized economic capital (CHF million) | |||||||||||||||||
Position risk (99.97% confidence level) | 21,660 | 23,836 | 22,548 | (9) | (4) | ||||||||||||
Operational risk | 2,469 | 2,515 | 2,567 | (2) | (4) | ||||||||||||
Other risks1 | 1,040 | 1,002 | 1,648 | 4 | (37) | ||||||||||||
Utilized economic capital | 25,169 | 2 | 27,353 | 26,763 | (8) | (6) | |||||||||||
Economic capital coverage ratio (%) | |||||||||||||||||
Economic capital coverage ratio | 157.0 | 2 | 145.2 | 149.9 | &n dash; | – | |||||||||||
Utilized economic capital by segment (CHF million) | |||||||||||||||||
Investment Banking | 17,951 | 2 | 20,412 | 19,366 | (12) | (7) | |||||||||||
Wealth Management | 1,755 | 1,693 | 1,431 | 4 | 23 | ||||||||||||
Corporate & Retail Banking | 3,083 | 3,038 | 3,249 | 1 | (5) | ||||||||||||
Private Banking | 4,838 | 4,731 | 4,680 | 2 | 3 | ||||||||||||
Asset Management | 2,025 | 1,839 | 1,485 | 10 | 36 | ||||||||||||
Corporate Center | 358 | 381 | 1,297 | (6) | (72) | ||||||||||||
Utilized economic capital - Credit Suisse3 | 25,169 | 2 | 27,353 | 26,763 | (8) | (6) | |||||||||||
Average utilized economic capital by segment (CHF million) | |||||||||||||||||
Investment Banking | 19,182 | 2 | 19,111 | 19,087 | 0 | 0 | |||||||||||
Wealth Management | 1,724 | 1,664 | 1,486 | 4 | 16 | ||||||||||||
Corporate & Retail Banking | 3,061 | 3,030 | 3,379 | 1 | (9) | ||||||||||||
Private Banking | 4,785 | 4,694 | 4,865 | 2 | (2) | ||||||||||||
Asset Management | 1,932 | 1,689 | 1,539 | 14 | 26 | ||||||||||||
Corporate Center | 369 | 803 | 1,592 | (54) | (77) | ||||||||||||
Average utilized economic capital - Credit Suisse4 | 26,261 | 2 | 26,277 | 26,880 | 0 | (2) | |||||||||||
1 Includes owned real estate, expense risk and diversification benefit. 2 Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business, as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends. For further information, refer to Risk Management – Revaluation impact on risk metrics. 3 Includes a diversification benefit of CHF 3 million as of the end of 4Q07. 4 Includes a diversification benefit of CHF 7 million in 4Q07. |
Risk Management |
Position risk | |||||||||||||||||
end of | % change | ||||||||||||||||
4Q07 | 1 | 3Q07 | 4Q06 | QoQ | YoY | ||||||||||||
Position risk (CHF million) | |||||||||||||||||
Fixed income trading2 | 2,280 | 2,601 | 2,692 | (12) | (15) | ||||||||||||
Equity trading and investments | 2,911 | 2,696 | 2,522 | 8 | 15 | ||||||||||||
Private banking corporate and retail lending | 2,286 | 2,264 | 2,174 | 1 | 5 | ||||||||||||
International lending and counterparty exposures | 3,870 | 3,848 | 3,417 | 1 | 13 | ||||||||||||
Emerging markets | 2,040 | 1,822 | 1,775 | 12 | 15 | ||||||||||||
Real estate and structured assets3 | 3,252 | 4,759 | 4,738 | (32) | (31) | ||||||||||||
Simple sum across risk categories | 16,639 | 17,990 | 17,318 | (8) | (4) | ||||||||||||
Diversification benefit | (4,682) | (4,751) | (4,801) | (1) | (2) | ||||||||||||
Position risk (99% confidence level for risk management purposes) | 11,957 | 13,239 | 12,517 | (10) | (4) | ||||||||||||
Position risk (99.97% confidence level for capital management purposes) | 21,660 | 23,836 | 22,548 | (9) | (4) | ||||||||||||
Prior balances have been restated for methodology changes in order to show meaningful trends. | |||||||||||||||||
1 Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business, as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends. For further information, refer to Revaluation impact on risk metrics. 2 This category comprises fixed income trading, foreign exchange and commodity exposures. 3 This category comprises the real estate investments of the Group, commercial and residential real estate, asset-backed securities exposure and real estate acquired at auction. |
One-day, 99% VaR | ||||||||||||||||||||
in / end of period | Interest rate and credit spread | Foreign exchange | Commodity | Equity | Diversi- fication benefit | Total | ||||||||||||||
4Q07 (CHF million) | ||||||||||||||||||||
Average1 | 110 | 38 | 22 | 89 | (83) | 176 | ||||||||||||||
Minimum1 | 87 | 21 | 16 | 72 | – | 2 | 144 | |||||||||||||
Maximum1 | 131 | 58 | 36 | 122 | – | 2 | 216 | |||||||||||||
End of period1 | 124 | 48 | 31 | 91 | (78) | 216 | ||||||||||||||
3Q07 (CHF million) | ||||||||||||||||||||
Average | 73 | 22 | 18 | 71 | (89) | 95 | ||||||||||||||
Minimum | 47 | 8 | 13 | 51 | – | 2 | 74 | |||||||||||||
Maximum | 101 | 41 | 21 | 102 | – | 2 | 160 | |||||||||||||
End of period | 100 | 34 | 18 | 86 | (78) | 160 | ||||||||||||||
4Q06 (CHF million) | ||||||||||||||||||||
Average | 49 | 19 | 12 | 57 | (67) | 70 | ||||||||||||||
Minimum | 42 | 9 | 6 | 44 | – | 2 | 53 | |||||||||||||
Maximum | 63 | 28 | 16 | 69 | – | 2 | 99 | |||||||||||||
End of period | 62 | 24 | 15 | 57 | (69) | 89 | ||||||||||||||
1 Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business, as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends. For further information, refer to Revaluation impact on risk metrics. 2 As the maximum and minimum occur on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit. |
Revaluation impact on risk metrics |
In connection with ongoing control processes, we identified mismarks and pricing errors by a small number of traders in certain ABS positions in our CDO trading business in Investment Banking. We have not revised 2007 position risk or VaR for the CHF 1,177 million valuation reductions on these ABS positions, as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends. For further information, refer to the Explanation of revision at the beginning of this document and the Annual Report 2007. |
Loans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Banking | Private Banking | Other | 1 | Credit Suisse | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Wealth Management | Corporate & Retail Banking | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
end of | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | 4Q07 | 3Q07 | 4Q06 | ||||||||||||||||||||||||||||||||||||||
Loans (CHF million) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgages | 0 | 0 | 0 | 31,450 | 31,254 | 29,505 | 48,128 | 48,685 | 46,435 | 79,578 | 79,939 | 75,940 | 0 | 0 | 0 | 79,578 | 79,939 | 75,940 | ||||||||||||||||||||||||||||||||||||||
Loans collateralized by securities | 0 | 0 | 0 | 23,267 | 24,288 | 20,372 | 202 | 196 | 465 | 23,469 | 24,484 | 20,837 | 0 | 0 | 0 | 23,469 | 24,484 | 20,837 | ||||||||||||||||||||||||||||||||||||||
Other loans | 1,017 | 928 | 1,110 | 916 | 797 | 558 | 3,786 | 3,402 | 3,087 | 4,702 | 4,199 | 3,645 | 0 | 0 | 0 | 5,719 | 5,127 | 4,755 | ||||||||||||||||||||||||||||||||||||||
Consumer loans | 1,017 | 928 | 1,110 | 55,633 | 56,339 | 50,435 | 52,116 | 52,283 | 49,987 | 107,749 | 108,622 | 100,422 | 0 | 0 | 0 | 108,766 | 109,550 | 101,532 | ||||||||||||||||||||||||||||||||||||||
Real estate | 2,213 | 1,882 | 1,491 | 4,996 | 4,714 | 3,975 | 15,888 | 15,758 | 14,825 | 20,884 | 20,472 | 18,800 | 0 | 0 | 0 | 23,097 | 22,354 | 20,291 | ||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans | 34,661 | 28,550 | 22,616 | 10,661 | 9,104 | 7,986 | 27,910 | 26,328 | 27,123 | 38,571 | 35,432 | 35,109 | 11 | 0 | 172 | 73,243 | 63,982 | 57,897 | ||||||||||||||||||||||||||||||||||||||
Loans to financial institutions | 25,909 | 20,640 | 18,658 | 4,970 | 5,932 | 6,812 | 2,803 | 2,354 | 2,246 | 7,773 | 8,286 | 9,058 | 125 | 515 | 0 | 33,807 | 29,441 | 27,716 | ||||||||||||||||||||||||||||||||||||||
Governments and public institutions | 1,459 | 1,444 | 736 | 67 | 66 | 16 | 1,349 | 1,445 | 1,415 | 1,416 | 1,511 | 1,431 | 0 | 0 | 0 | 2,875 | 2,955 | 2,167 | ||||||||||||||||||||||||||||||||||||||
Corporate loans | 64,242 | 52,516 | 43,501 | 20,694 | 19,816 | 18,789 | 47,950 | 45,885 | 45,609 | 68,644 | 65,701 | 64,398 | 136 | 515 | 172 | 133,022 | 118,732 | 108,071 | ||||||||||||||||||||||||||||||||||||||
Gross loans | 65,259 | 53,444 | 44,611 | 76,32 7 | 76,155 | 69,224 | 100,066 | 98,168 | 95,596 | 176,393 | 174,323 | 164,820 | 136 | 515 | 172 | 241,788 | 228,282 | 209,603 | ||||||||||||||||||||||||||||||||||||||
Net (unearned income) / deferred expenses | (72) | (64) | (71) | 12 | 14 | 10 | 40 | 42 | 68 | 52 | 56 | 78 | 0 | 1 | 1 | (20) | (7) | 8 | ||||||||||||||||||||||||||||||||||||||
Allowance for loan losses2 | (295) | (283) | (255) | (74) | (76) | (78) | (865) | (954) | (1,150) | (939) | (1,030) | (1,228) | 0 | (3) | (1) | (1,234) | (1,316) | (1,484) | ||||||||||||||||||||||||||||||||||||||
Net loans3 | 64,892 | 53,097 | 44,285 | 76,265 | 76,093 | 69,156 | 99,241 | 97,256 | 94,514 | 175,506 | 173,349 | 163,670 | 136 | 513 | 172 | 240,534 | 226,959 | 208,127 | ||||||||||||||||||||||||||||||||||||||
Impaired loans (CHF million) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-performing loans | 234 | 20 | 152 | 101 | 115 | 147 | 638 | 670 | 748 | 739 | 785 | 895 | 0 | 0 | 0 | 973 | 805 | 1,047 | ||||||||||||||||||||||||||||||||||||||
Non-interest-earning loans | 0 | 0 | 2 | 31 | 30 | 19 | 346 | 410 | 524 | 377 | 440 | 543 | 0 | 0 | 0 | 377 | 440 | 545 | ||||||||||||||||||||||||||||||||||||||
Total non-performing loans | 234 | 20 | 154 | 132 | 145 | 166 | 984 | 1,080 | 1,272 | 1,116 | 1,225 | 1,438 | 0 | 0 | 0 | 1,350 | 1,245 | 1,592 | ||||||||||||||||||||||||||||||||||||||
Restructured loans | 42 | 33 | 0 | 0 | 0 | 0 | 7 | 0 | 22 | 7 | 0 | 22 | 0 | 0 | 0 | 49 | 33 | 22 | ||||||||||||||||||||||||||||||||||||||
Potential problem loans | 175 | 147 | 34 | 6 | 12 | 19 | 366 | 365 | 464 | 372 | 377 | 483 | 0 | 0 | 0 | 547 | 524 | 517 | ||||||||||||||||||||||||||||||||||||||
Total other impaired loans | 217 | 180 | 34 | 6 | 12 | 19 | 373 | 365 | 486 | 379 | 377 | 505 | 0 | 0 | 0 | 596 | 557 | 539 | ||||||||||||||||||||||||||||||||||||||
Gross impaired loans | 451 | 200 | 188 | 138 | 157 | 185 | 1,357 | 1,445 | 1,758 | 1,495 | 1,602 | 1,943 | 0 | 0 | 0 | 1,946 | 1,802 | 2,131 | ||||||||||||||||||||||||||||||||||||||
of which with a specific allowance | 244 | 200 | 188 | 137 | 152 | 177 | 1,182 | 1,228 | 1,437 | 1,319 | 1,380 | 1,614 | 0 | 0 | 0 | 1,563 | 1,580 | 1,802 | ||||||||||||||||||||||||||||||||||||||
of which without a specific allowance | 207 | 0 | 0 | 1 | 5 | 8 | 175 | 217 | 321 | 176 | 222 | 329 | 0 | 0 | 0 | 383 | 222 | 329 | ||||||||||||||||||||||||||||||||||||||
Allowance for loan losses (CHF million) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | 283 | 287 | 255 | 76 | 78 | 81 | 954 | 1,005 | 1,190 | 1,030 | 1,083 | 1,271 | 3 | 2 | 1 | 1,316 | 1,372 | 1,527 | ||||||||||||||||||||||||||||||||||||||
Change in accounting | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Net additions charged to statements of income | 11 | 8 | 16 | 1 | (1) | (18) | (7) | (15) | (24) | (6) | (16) | (42) | 0 | (1) | 1 | 5 | (9) | (25) | ||||||||||||||||||||||||||||||||||||||
Gross write-offs | (2) | (5) | (33) | (2) | (1) | (2) | (90) | (54) | (40) | (92) | (55) | (42) | 0 | 0 | (1) | (94) | (60) | (76) | ||||||||||||||||||||||||||||||||||||||
Recoveries | 11 | 4 | 19 | 0 | 0 | 17 | 9 | 25 | 32 | 9 | 25 | 49 | 0 | 0 | 0 | 20 | 29 | 68 | ||||||||||||||||||||||||||||||||||||||
Net write-offs | 9 | (1) | (14) | (2) | (1) | 15 | (81) | (29) | (8) | (83) | (30) | 7 | 0 | 0 | (1) | (74) | (31) | (8) | ||||||||||||||||||||||||||||||||||||||
Provisions for interest | 1 | 2 | 3 | 0 | 0 | 0 | 0 | (2) | (5) | 0 | (2) | (5) | 0 | 1 | 1 | 1 | 1 | (1) | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation impact and other adjustments, net | (9) | (13) | (5) | (1) | 0 | 0 | (1) | (5) | (3) | (2) | (5) | (3) | (3) | 1 | (1) | (14) | (17) | (9) | ||||||||||||||||||||||||||||||||||||||
Balance at end of period2 | 295 | 283 | 255 | 74 | 76 | 78 | 865 | 954 | 1,150 | 939 | 1,030 | 1,228 | 0 | 3 | 1 | 1,234 | 1,316 | 1,484 | ||||||||||||||||||||||||||||||||||||||
of which a specific allowance | 69 | 31 | 28 | 50 | 52 | 56 | 730 | 816 | 1,007 | 780 | 868 | 1,063 | 1 | 0 | 0 | 850 | 899 | 1,091 | ||||||||||||||||||||||||||||||||||||||
of which an inherent credit loss allowance | 226 | 252 | 227 | 24 | 24 | 22 | 135 | 138 | 143 | 159 | 162 | 165 | (1) | 3 | 1 | 384 | 417 | 393 | ||||||||||||||||||||||||||||||||||||||
Loan metrics (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total non-performing loans / gross loans | 0.4 | 0.0 | 0.3 | 0.2 | 0.2 | 0.2 | 1.0 | 1.1 | 1.3 | 0.6 | 0.7 | 0.9 | – | – | – | 0.6 | 0.5 | 0.8 | ||||||||||||||||||||||||||||||||||||||
Total other impaired loans / gross loans | 0.3 | 0.3 | 0.1 | 0.0 | 0.0 | 0.0 | 0.4 | 0.4 | 0.5 | 0.2 | 0.2 | 0.3 | – | – | – | 0.2 | 0.2 | 0.3 | ||||||||||||||||||||||||||||||||||||||
Gross impaired loans / gross loans | 0.7 | 0.4 | 0.4 | 0.2 | 0.2 | 0.3 | 1.4 | 1.5 | 1.8 | 0.8 | 0.9 | 1.2 | – | – | – | 0.8 | 0.8 | 1.0 | ||||||||||||||||||||||||||||||||||||||
Allowance for loan losses / total non-performing loans | 126.1 | – | 165.6 | 56.1 | 52.4 | 47.0 | 87.9 | 88.3 | 90.4 | 84.1 | 84.1 | 85.4 | – | – | – | 91.4 | 105.7 | 93.2 | ||||||||||||||||||||||||||||||||||||||
Allowance for loan losses / total other impaired loans | 135.9 | 157.2 | 750.0 | – | 633.3 | 410.5 | 231.9 | 261.4 | 236.6 | 247.8 | 273.2 | 243.2 | – | – | – | 207.0 | 236.3 | 275.3 | ||||||||||||||||||||||||||||||||||||||
Allowance for loan losses / gross impaired loans | 65.4 | 141.5 | 135.6 | 53.6 | 48.4 | 42.2 | 63.7 | 66.0 | 65.4 | 62.8 | 64.3 | 63.2 | – | – | – | 63.4 | 73.0 | 69.6 | ||||||||||||||||||||||||||||||||||||||
The disclosure presents our lending exposure from a risk management perspective. This presentation differs from loan disclosures in the Credit Suisse Financial Statements 4Q07. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 Includes Asset Management and Corporate Center. 2 Allowance for loan losses reflects allowances on loans which are not carried at fair value. 3 Loans carried at fair value amount to CHF 31,047 million and CHF 22,345 million in 4Q07 and 3Q07, respectively. |
Investor Information |
Investor Information |
Ticker symbols / stock exchange listings | ||||||||
Common shares | ADS | 1 | ||||||
Ticker symbols | ||||||||
Bloomberg | CSGN VX | CS US | ||||||
Reuters | CSGN.VX | CS.N | ||||||
Telekurs | CSGN,380 | CS,065 | ||||||
Stock exchange listings | ||||||||
Swiss security number | 1213853 | 570660 | ||||||
ISIN number | CH0012138530 | US2254011081 | ||||||
CUSIP number | – | 225 401 108 | ||||||
1 One American Depositary Share (ADS) represents one common share. |
Bond ratings | |||||||||||
Moody's | Standard & Poor's | Fitch Ratings | |||||||||
Credit Suisse Group ratings | |||||||||||
Short-term | – | A-1 | F1+ | ||||||||
Long-term | Aa2 | A+ | AA- | ||||||||
Outlook | Stable | Credit Watch: Negative | Stable | ||||||||
Credit Suisse (the Bank) ratings | |||||||||||
Short-term | P-1 | A-1+ | F1+ | ||||||||
Long-term | Aa1 | AA- | AA- | ||||||||
Outlook | Stable | Credit Watch: Negative | Stable | ||||||||
Share data | ||||||||||||||
in / end of | ||||||||||||||
2007 | 2006 | 2005 | 2004 | |||||||||||
Share price (common shares, CHF) | ||||||||||||||
Average | 83.02 | 73.13 | 54.19 | 43.90 | ||||||||||
Minimum | 61.90 | 62.70 | 46.85 | 37.35 | ||||||||||
Maximum | 95.45 | 85.35 | 68.50 | 49.50 | ||||||||||
End of period | 68.10 | 85.25 | 67.00 | 47.80 | ||||||||||
Share price (American Depository Shares, USD) | ||||||||||||||
Average | 68.97 | 58.46 | 43.40 | 30.04 | ||||||||||
Minimum | 55.93 | 50.07 | 38.75 | 35.44 | ||||||||||
Maximum | 79.03 | 70.00 | 52.91 | 42.50 | ||||||||||
End of period | 60.10 | 69.85 | 50.95 | 42.19 | ||||||||||
Market capitalization | ||||||||||||||
Market capitalization (CHF million) | 76,024 | 86,576 | 81,847 | 58,025 | ||||||||||
Market capitalization (USD million) | 67,093 | 74,290 | 62,241 | 51,215 | ||||||||||
Dividend per share (CHF) | ||||||||||||||
Dividend per share paid | 2.50 | 1 | 2.24 | 2.00 | 1.50 | |||||||||
Par value reduction | – | 0.46 | – | – | ||||||||||
1 Proposal of the Board of Directors to the Annual General Meeting on April 25, 2008. |
![]() |
Financial calendar and information sources |
Financial calendar | |||||
First quarter 2008 results | Thursday, April 24, 2008 | ||||
Annual General Meeting | Friday, April 25, 2008 | ||||
Investor relations | |||||
Phone | +41 44 333 71 49 | ||||
investor.relations@credit-suisse.com | |||||
Internet | www.credit-suisse.com/investors | ||||
Media relations | |||||
Phone | +41 844 33 88 44 | ||||
media.relations@credit-suisse.com | |||||
Internet | www.credit-suisse.com/news | ||||
Additional information | |||||
Results and financial information | www.credit-suisse.com/results | ||||
Printed copies | Credit Suisse | ||||
Procurement Non-IT Switzerland | |||||
RSCP 1 Publikationenversand | |||||
CH-8070 Zurich, Switzerland | |||||
US share register and transfer agent | |||||
ADS depositary institution | Deutsche Bank Trust Company Americas | ||||
Broker Service Desk | |||||
Address | Credit Suisse | ||||
c/o Mellon Investor Services | |||||
P.O. Box 3316 | |||||
So. Hackensack, NJ 07606 | |||||
United States | |||||
US and Canada phone (toll free) | +1 800 301 35 17 | ||||
Phone from outside US and Canada | +1 201 680 66 26 | ||||
shrrelations@mellon.com | |||||
Swiss share register and transfer agent | |||||
Address | Credit Suisse Group | ||||
Dept. GHBS | |||||
CH-8070 Zurich | |||||
Switzerland | |||||
Phone | +41 44 332 26 60 | ||||
Fax | +41 44 332 98 96 | ||||
Foreign currency translation rates | |||||||||||||||||||
in / end of | % change | ||||||||||||||||||
4Q07 | 3Q07 | 4Q06 | QoQ | YoY | |||||||||||||||
Average rate | |||||||||||||||||||
1 USD / 1 CHF | 1.15 | 1.20 | 1.23 | (4) | (7) | ||||||||||||||
1 EUR / 1 CHF | 1.66 | 1.65 | 1.59 | 1 | 4 | ||||||||||||||
1 GBP / 1 CHF | 2.34 | 2.43 | 2.37 | (4) | (1) | ||||||||||||||
100 JPY / 1 CHF | 1.01 | 1.02 | 1.05 | (1) | (4) | ||||||||||||||
Closing rate | |||||||||||||||||||
1 USD / 1 CHF | 1.13 | 1.17 | 1.22 | (3) | (7) | ||||||||||||||
1 EUR / 1 CHF | 1.66 | 1.66 | 1.61 | 0 | 3 | ||||||||||||||
1 GBP / 1 CHF | 2.25 | 2.38 | 2.40 | (5) | (6) | ||||||||||||||
100 JPY / 1 CHF | 1.00 | 1.02 | 1.03 | (2) | (3) | ||||||||||||||
Cautionary statement regarding forward-looking information |
This report contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to the following: |
– our plans, objectives or goals; |
– our future economic performance or prospects; |
– the potential effect on our future performance of certain contingencies; and |
– assumptions underlying any such statements. |
Words such as “believes,” “anticipates,” “expects,” “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable securities laws. |
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include: |
– the ability to maintain sufficient liquidity and access capital markets; |
– market and interest rate fluctuations; |
– the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; |
– the ability of counterparties to meet their obligations to us; |
– the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; |
– political and social developments, including war, civil unrest or terrorist activity; |
– the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; |
– operational factors such as systems failure, human error, or the failure to implement procedures properly; |
– actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; |
– the effects of changes in laws, regulations or accounting policies or practices; |
– competition in geographic and business areas in which we conduct our operations; |
– the ability to retain and recruit qualified personnel; |
– the ability to maintain our reputation and promote our brand; |
– the ability to increase market share and control expenses; |
– technological changes; |
– the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; |
– acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets; |
– the adverse resolution of litigation and other contingencies; and |
– our success at managing the risks involved in the foregoing. |
|
We caution you that the foregoing list of important factors is not exclusive. When evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the information set forth in our Form 20-F Item 3 – Key Information – Risk Factors. |
![]() |