2. DISCLAIMER
Cautionary Statement regarding forward-looking information
This presentation contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve inherent risks and uncertainties, and
we might not be able to achieve the predictions, forecasts, projections and
other outcomes we describe or imply in forward-looking statements.
A number of important factors could cause results to differ materially from
the plans, objectives, expectations, estimates and intentions we express in
these forward-looking statements, including those we identify in
quot;Risk Factorsquot; in our Annual Report on Form 20-F for the fiscal year
ended December 31, 2003 filed with the US Securities and Exchange
Commission, and in other public filings and press releases.
We do not intend to update these forward-looking statements except as
may be required by applicable laws.
Slide 1
3. RESULTS OVERVIEW
∆ vs ∆ vs ∆ vs
9M04 9M03 3Q04 2Q04 3Q03
in CHF m
Net revenues 41,817 8% 11,753 (13)% 0%
Total operating expenses (18,508) (7)% (5,939) (5)% (4)%
Net income 4,669 – 1,351 (7%) 414%
Basic earnings per share (in CHF) 3.98 1.16
Return on equity 17.7% 15.3%
S Private Banking achieved a lower result in view of the seasonal weakness in the
third quarter and a challenging market environment
S Corporate & Retail Banking recorded a good quarterly result
S Rebound of fixed income trading and solid advisory business at Institutional
Securities but lower investment-related gains at Wealth & Asset Management
S Further strengthening of underlying earnings power at Winterthur
S Third quarter 2004 net income at Credit Suisse First Boston and Winterthur
included favorable tax impacts totaling CHF 257 m
Slide 2
4. CREDIT SUISSE GROUP
REVENUES AFFECTED BY REDUCED CLIENT ACTIVITY
Private Banking and Institutional Securities and Life & Pensions and
Corporate & Retail Banking Wealth & Asset Management Non-Life
in CHF bn
21.0
20.6
4.1*
3.7 *
3.3
2.8
2.6 2.5
+2%
-11%*
-13%
+10%*
-6%
3Q04 3Q04 9M04
3Q03 2Q04 3Q03 2Q04 9M03
* Excluding minority interest revenues relating to the FIN 46R consolidation amounting to CHF 222 m and CHF 515 m in
3Q04 and 2Q04, respectively
Slide 3
5. CREDIT SUISSE GROUP
IMPROVED YEAR-TO-DATE COST/INCOME RATIO
Year-to-date cost/income ratio 1)
74%
79% 79% 70% 72%
Consolidated total operating expenses
in CHF bn
-5%
6.3 6.3 6.3
6.2 5.9
+2%
Other expenses 2)
Insurance underwriting, acquisition
-6%
and administration expenses
-9% Banking compensation
and benefits
3Q04
3Q03 4Q03 1Q04 2Q04
1) Excluding results from Life & Pensions and Non-Life and excluding minority interest revenues relating to the FIN 46R
consolidation amounting to CHF 222 m, CHF 515 m and CHF 108 m in 3Q04, 2Q04 and 1Q04, respectively
2) Including restructuring charges
Slide 4
6. CREDIT SUISSE GROUP
CONTINUED FAVORABLE CREDIT TRENDS
Provision for credit losses
in CHF m
113 191 34 133 38
Credit Suisse
Credit Suisse
218 First Boston
80
10 Winterthur and
Corporate Center
80
24
52
54
18
(21)
(47)
3Q04
3Q03 4Q03 1Q04 2Q04
Slide 5
7. CREDIT SUISSE GROUP
IMPROVING LOAN BOOK
Impaired loans Coverage ratio
in CHF bn in %
8.8
-41% 90 Credit Suisse
First Boston
7.2
6.4
80 80.0%
5.7
5.2
70
Credit Suisse
61.2%
60
50
3Q04 3Q03 4Q03 1Q04 2Q04 3Q04
3Q03 4Q03 1Q04 2Q04
Credit Suisse Credit Suisse
First Boston Winterthur
Slide 6
8. CREDIT SUISSE GROUP
CAPITAL RATIOS REMAIN AT A HIGH LEVEL
Risk-weighted assets 1) BIS tier 1 ratio 1)
in CHF bn in %
16
15
197.4 190.1 201.2 202.6 203.6 Credit Suisse
14 First Boston
13
12.1%
12
11.8%
11 Credit Suisse
10 Group
9 Credit Suisse
8.5%
8
7
6
3Q03 4Q03 1Q04 2Q04 3Q04 3Q03 4Q03 1Q04 2Q04 3Q04
Credit Suisse Credit Suisse
1) All calculations through December 31, 2003,
First Boston Other
are on the basis of Swiss GAAP
Slide 7
9. PRIVATE BANKING
LOWER RESULTS AFFECTED BY SEASONALITY
AND CHALLENGING MARKET ENVIRONMENT
Net income
in CHF m
1,857
681 665
629
1,307
511
510
-23%
+42%
9M04 3Q04
9M03 3Q03 4Q03 1Q04 2Q04
Slide 8
10. PRIVATE BANKING
REDUCED MARKET VOLUMES RESULTING IN LOW
TRANSACTION-RELATED REVENUES
Revenues & expenses Cost/income ratio
in CHF m in %
1,869 -12% 72.2
1,716 1,644
60.5
61.6
57.8
1,083 -8%
994
1,021
3Q04 9M04 3Q04
3Q03 2Q04 FY FY
2002 2003
All other revenues Operating
expenses
Commissions and fees
Slide 9
11. PRIVATE BANKING
STABLE ASSET-DRIVEN MARGIN BUT REDUCED
CLIENT ACTIVITY
Gross margin Key drivers in 3Q04
in bp
146
142 139
136 137 7
130
122
10
20
8 13
7
4
S Seasonality and challenging
47 57 48
45 47 47 37 market environment leading
to reduced transaction-
related revenues
S Stable asset-driven margin
78 81 77 75 82 81 81
9M03 9M04 3Q03 4Q03 1Q04 2Q04 3Q04
Asset-driven Transaction-driven Other
Slide 10
12. PRIVATE BANKING
STRONG YEAR-TO-DATE NET ASSET INFLOWS
DESPITE RECENT SLOWDOWN
Net new assets Assets under management
in CHF bn in CHF bn
Year-to-date
5.9
3.8
annualized
544
537
541
in %
511
505
10.8
8.4
7.9
4.3
3.8
3Q04 3Q04
3Q03 4Q03 1Q04 2Q04 3Q03 4Q03 1Q04 2Q04
2003 & 9M04 quarterly average
Slide 11
13. CORPORATE & RETAIL BANKING
SOLID RESULTS DESPITE LOWER TRADING
REVENUES
Net income
in CHF m
644
536
256
218
199
189
+20%
-22%
50
9M04 3Q04
9M03 3Q03 4Q03 1Q04 2Q04
Slide 12
14. CORPORATE & RETAIL BANKING
SOLID UNDERLYING REVENUES
Revenues & expenses Cost/income ratio
in CHF m in %
Changes in fair value of interest rate derivatives
used for risk management purposes that do not
qualify for hedge accounting:
+6
+134 +136
91.6
950
-15%
904
808 65.2
65.4 61.8
-5%
553
546 527
9M04 3Q04
3Q04 2002 2003
3Q03 2Q04
Net revenues Operating expenses
Slide 13
16. INSTITUTIONAL SECURITIES
RECOVERY IN FIXED INCOME TRADING REVENUES
AND TAX RELEASE DRIVE RESULTS IMPROVEMENT
Net income
in CHF m
1,044 *
623
796
+31% 292 *
129 *
130 96
+126%
9M04 3Q04
9M03 3Q03 4Q03 1Q04 2Q04
* Including the release of tax contingency accruals of CHF 126 m and CHF 27 m in 3Q04 and 2Q04, respectively
Slide 15
17. INSTITUTIONAL SECURITIES
FIXED INCOME TRADING REBOUND;
CHALLENGING EQUITY MARKETS CONTINUE
Fixed Income trading revenues Equity trading revenues
in CHF m in CHF m
1,869
1,348
1,105
1,012
884 843
841
696
668 659
+33%
-17%
+102% -17%
3Q04 3Q04
3Q03 4Q03 1Q04 2Q04 3Q03 4Q03 1Q04 2Q04
Slide 16
19. INSTITUTIONAL SECURITIES
OPERATING EXPENSES
Pre-tax margin 1)
Total operating expenses
in CHF bn in %
Other operating expenses
22.2
Compensation and benefits
3.1
2.9 2.8
2.5
2.4
+19%
10.9
9.7
7.7
4.6
-13%
3Q04 3Q04
3Q03 4Q03 1Q04 2Q04 3Q03 4Q03 1Q04 2Q04
1) Excluding minority interest revenues relating to the FIN 46R consolidation amounting to CHF 48 m, CHF 53 m and CHF
40 m in 3Q04, 2Q04 and 1Q04, respectively, and minority interest expense relating to the FIN 46R consolidation
amounting to CHF 4 m in 3Q04
Slide 18
20. WEALTH & ASSET MANAGEMENT
NET INCOME PRIMARILY DRIVEN BY
INVESTMENT-RELATED GAINS
Net income
in CHF m
467
301
207
136
73
+126%
-90% 30
26
9M04 3Q04
9M03 3Q03 4Q03 1Q04 2Q04
Slide 19
21. WEALTH & ASSET MANAGEMENT
VOLATILE INVESTMENT-RELATED GAINS;
LOWER ASSET MANAGEMENT FEES
Revenues by division 1)
in CHF m
-39%
1,037
956
798
-84% Investment related gains &
711 635 Other
-17%
Credit Suisse
Asset Management
-16% Private Client Services
Alternative Capital Division
+7%
3Q04
3Q03 4Q03 1Q04 2Q04
1) Excluding CHF 174 m, CHF 462 m, and CHF 68 m, in 3Q04, 2Q04 and 1Q04, respectively, in minority interest
revenues relating to the FIN 46R consolidation
Slide 20
22. WEALTH & ASSET MANAGEMENT
NET NEW ASSETS IMPROVED IN ACD
Net new assets 1) Assets under management 1)
in CHF bn in CHF bn
(0.5) 488
(6.7) 1.2 0.6 2.7 498 475 495 489
3Q04 3Q04
3Q03 4Q03 1Q04 2Q04 3Q03 4Q03 1Q04 2Q04
Credit Suisse Alternative Capital Private Client
Asset Management Division (“ACD”) Services
1) Includes assets managed on behalf of other entities within Credit Suisse Group
Slide 21
23. LIFE & PENSIONS
FURTHER STRENGTHENING OF UNDERLYING
EARNINGS POWER
Net income
in CHF m
370 * 164 *
139
67
+145%
(41)
(176)
(1,859)
9M04 3Q04
9M03 3Q03 4Q03 1Q04 2Q04
* Including an increase in the valuation of deferred tax assets on net operating losses created in prior years in the amount
of CHF 72 m
Slide 22
24. LIFE & PENSIONS
STRONG GROWTH IN UNIT-LINKED BUSINESS AND
CONTINUED COST REDUCTION
Underwriting, acquisition and
Total business volume in CHF m administration expenses
in CHF m
+2%
12,585 12,819 -4%
Policyholder 1,235
+26% 1,183
deposits
Underwriting and
+3%
acquisition
expenses
Gross
-8%
premiums
Administration -8%
written
expenses
9M04 9M04
9M03 9M03
Slide 23
25. LIFE & PENSIONS
HIGHER INVESTMENT INCOME DRIVEN BY LOWER
REALIZED LOSSES
Net investment return Realized gains / (losses)
in CHF bn
4.7%
4.6%
0.8%
0.7%
2.25
1.45
3.9% 3.9%
(0.83)
(1.73)
9M04 9M04
9M03 9M03
Realized gains / (losses) Realized gains
Net current income Realized losses
Slide 24
26. NON-LIFE
FURTHER STRENGTHENING OF UNDERLYING
EARNINGS POWER
Net income
in CHF m
383 * 198 *
103
82
55
+141%
(429)
(612)
9M04 3Q04
9M03 3Q03 4Q03 1Q04 2Q04
* Including an increase in the valuation of deferred tax assets on net operating losses created in prior years in the amount
of CHF 59 m
Slide 25
27. NON-LIFE
IMPROVED UNDERWRITING RESULT AND
TARIFF-DRIVEN GROWTH
Underwriting, acquisition and
Combined ratio Net premiums earned administration expenses
in % in CHF m in CHF m
8,020
7,637
-2.8ppts
2,045
2,068
99.7
102.5 Underwriting
and acquisition
Expense 27.1 0%
25.5 expenses
ratio +5%
Claims Administration
75.4 74.2
ratio -3%
expenses
9M04 9M04 9M04
9M03 9M03 9M03
Slide 26
28. NON-LIFE
HIGHER INVESTMENT INCOME DRIVEN BY LOWER
REALIZED LOSSES
Net investment return Realized gains / (losses)
in CHF bn
4.7%
4.0% 1.1%
0.3%
0.40 0.38
3.7% 3.6%
(0.18)
(0.35)
9M04 9M04
9M03 9M03
Realized gains / (losses) Realized gains
Net current income Realized losses
Slide 27
29. OUTLOOK
S Our businesses are well-positioned to seize growth opportunities
S We have the people, the capital strength and the know-how to improve our
platform, as well as the determination to realize our full potential
S We aim to close remaining gaps while continuing to offer our clients outstanding
products and services that create value in a less predictable market environment
S We are confident to achieve a good result for the full year 2004, but financial
services markets are not anticipated to grow significantly over the next few
quarters
S Earnings growth is expected to be achieved primarily through tight cost
management and increased market shares
S The Group’s new integrated management structure will further enhance
cooperation throughout the company and allow clients to be served across
multiple business lines
S This should pave the way for the more efficient allocation of capital and other
resources, which will be deployed with a view to expanding key businesses
Slide 28
