2. EDITORIAL
Good performance in a challenging market environment
management rose 0.5% compared
Dear shareholders, clients and
fellow employees with year-end 2000.
Our expectations relating to the
Dear readers acquisition of DLJ have already been
largely fulfilled. The integration pro-
Credit Suisse Group performed well gressed rapidly and smoothly, and we
during the first three months of the have succeeded in retaining a high
year against a backdrop of very chal- number of key individuals. The full im-
lenging market conditions. At the same pact of the merger should be felt from
time, it succeeded in strengthening its the second half of the year onwards.
position as one of the leading global Moreover, the sale of Winterthur’s large
financial services providers in its core multinational corporates insurance
areas of business – asset management business represented a further step
and investment banking. forward in our efforts to focus on our
Lukas Mühlemann
The first quarter of 2001 contrasted core retail insurance activities in our
Chairman and Chief Executive Officer
sharply with that of the previous year, non-life business. Good progress has
which was characterised by very high also been made in the implementation
transaction volumes in positive equity of our Personal Financial Services
markets. However, the first quarter of Europe strategy, and launches in
2001 saw a correction in global equity Germany and Spain are set to go
markets, growing signs of a marked ahead on schedule later this year.
economic slowdown, a reduction in The Credit Suisse Group share
information technology investments and price rose 5% in the first four months
a downward revision of profit expecta- of 2001, performing well in comparison
tions. While these factors have impact- with the market and competitors.
ed parts of our asset gathering and We are well positioned to exploit
capital markets business, our life and the favourable prospects for profitable
non-life insurance business continued growth in the Group’s key areas of
to report strong results. business. We expect difficult market
In this difficult first quarter, Credit conditions to persist during 2001 but
Suisse Group increased its operating remain confident that, even in this chal-
income by 21% over the first quarter of lenging environment, we will make fur-
2000, and by 4% over the previous ther progress towards achieving our
quarter. Donaldson, Lufkin & Jenrette targets.
(DLJ) is included in the results from
3 November 2000. The Group’s net
operating profit stood at CHF 1.7 bil-
lion, corresponding to an operating
profit of CHF 5.74 per share. The net Lukas Mühlemann
inflow of new assets remained strong, Chairman and Chief Executive Officer
totalling CHF 19.9 billion. Assets under May 2001
www.credit-suisse.com 1
3. CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q1/2001
Change
Share data 31 March 2001 31 Dec. 2000 in %
Number of shares issued 300,747,196 300,437,990 0
Shares ranking for dividend 300,747,196 300,437,990 0
Market capitalisation in CHF m 91,878 92,535 (1)
Book value per share in CHF 138.25 136.30 1
31 March 2001 31 Dec. 2000 Change
in CHF in CHF in %
Share price (as of 30.4.2001: CHF 323.50)
at end of reporting period 305.5 308.0 (1)
quarter/year high 348.0 388.5 (10)
quarter/year low 279.0 293.0 (5)
Change vs.
Q1/2000
Q1/2001 Q4/2000 Q1/2000 in %
Average numbers of shares 300,474,593 290,534,130 272,710,385 10
Earnings per share in CHF 4.75 2.03 7.02 (32)
Operating earnings per share in CHF 1) 5.74 6.47 7.19 (20)
Earnings per share – diluted, in CHF 4.74 2.03 6.98 (32)
Operating earnings per share – diluted, in CHF 1) 5.73 6.45 7.15 (20)
1)
Excl. amortisation of acquired intangible assets and goodwill, as well as for Q4/2000 excl. restructuring provision.
Share performance Market capitalisation
Swiss Market Index Credit Suisse Group as of end of reporting period (in CHF bn)
100
400
90
350
300 80
250
70
200
60
150 50
40
100
30
20
10
0
1998
1996 1999 2000 2001
1997 91 92 93 94 95 96 97 98 99 00 Q1/01
Financial calendar
Annual General Meeting Friday, 1 June 2001
Distribution of par value reduction Wednesday, 15 August 2001
Second quarter results 2001/half-year results 2001 Wednesday, 29 August 2001
Third quarter results 2001 Tuesday, 20 November 2001
Fourth quarter/full-year results 2001 Tuesday, 12 March 2002
2
4. Change vs. Veränderung seit
Q1/2001 Q4/2000 Q1/2000 Q1/2000 Q1/2000
Consolidated income statement in CHF m in CHF m in CHF m in % in %
Operating income 11,091 10,631 9,177 21 34
Gross operating profit 3,107 3,169 3,253 (4) 2
Net operating profit 1) 1,726 1,880 1,961 (12) 5
Net profit 1,428 590 1,915 (25)
Cash flow 2,535 3,308 2,595 (2)
Change vs.
Q1/2001 Q4/2000 Q1/2000 Q1/2000
Return on equity (ROE) in % in % in % in %
Credit Suisse Group: – Reported ROE 13.9 6.1 24.9 (44)
Operating ROE 1)
– 16.7 19.0 25.5 (35) 16
Banking business: – Reported ROE 13.2 2.5 29.3 (55)( 17
Operating ROE 1)
– 16.6 18.7 30.0 (45) 3
Insurance business: – Reported ROE 16.7 19.9 13.2 27 47
Operating ROE 1)
– 17.2 20.4 13.6 26 50
– Return on invested capital (ROIC) 21.6 30.6 24.4 (11)
31 Dec. 2000 Change
31 March 2001
Consolidated balance sheet in CHF m in %
in CHF m
Total assets 987,433 8
1,065,543
Shareholders’ equity 43,522 1
44,099
Minority interests in shareholders’ equity 2,571 (2)
2,521
31 Dec. 2000 Change
31 March 2001
BIS data in CHF m in %
in CHF m
BIS risk-weighted assets 239,465 5
250,392
BIS tier 1 capital 27,111 (5)
25,699
– of which non-cumulative perpetual preferred securities 1,102 1
1,118
BIS total capital 43,565 (5)
41,599
Veränderung seit
BIS ratios 31.12.2000
in %
in %
in %
BIS tier 1 ratio
26.2
Credit Suisse 7.1
6.7
11.4
Credit Suisse First Boston 2) 13.6
13.0
Credit Suisse Group 3) 11.3
10.3
BIS total capital ratio Credit Suisse Group 18.2
16.6
19.3
27.2
31 Dec. 2000 Change
31 March 2001
Assets under management/client assets in CHF bn in %
in CHF bn
Veränderung seit
Advisory assets under management 710.0 0
711.1 31.12.2000
in
Discretionary assets under management 649.5 1
654.6
Total assets under management 1,359.5 0
1,365.7
Client assets 2,019.5 3
2,088.7
Q1/2000 Change vs.
Q1/2001 Q4/2000
in CHF bn Q1/2000 in %
in CHF bn in CHF bn
Net new assets 21.5 (7)
19.9 16.9
Change
Number of employees 31 Dec. 2000 in %
31 March 2001
Switzerland 28,235 1
28,418
Outside Switzerland 52,303 3
53,730
Total employees Credit Suisse Group 80,538 2
82,148
1)
Excl. amortisation of acquired intangible assets and goodwill (Q1/2001: CHF 298 m; Q4/2000: CHF 216 m; Q1/2000: CHF 46 m), as well as excl. for Q4/2000
restructuring provision of CHF 1,074 m, all net of tax.
2)
Ratio is based on a tier 1 capital of CHF 18.4 bn (31 Dec. 2000: CHF 17.6 bn), of which non-cumulative perpetual preferred securities is CHF 1.1 bn (both periods).
3)
Ratio is based on a tier 1 capital of CHF 25.7 bn (31 Dec. 2000: CHF 27.1 bn), of which non-cumulative perpetual preferred securities is CHF 1.1 bn (both periods).
www.credit-suisse.com 3
5. AN OVERVIEW OF CREDIT SUISSE GROUP
Credit Suisse Group posted a net operating profit of CHF 1.7
billion in the first quarter of 2001, representing a 12% decrease
over a very strong first quarter of 2000 and an 8% decrease
over the fourth quarter of 2000. The net inflow of new assets
remained strong, totalling CHF 19.9 billion.
Overview of business unit results
Credit Credit Credit Credit Adjustments
Suisse Suisse Suisse Suisse including Credit
Q1/2001 Financial Private Asset First Corporate Suisse
in CHF m Services Banking Management Boston Center Group
Operating income 2,462 1,579 377 6,860 (187) 11,091 11 091
Operating expenses 1,628 673 288 5,650 (255) 7,984) 7 984
Gross operating profit 834 906 89 1,210 68 3,107 3 107
1) 5)
Depreciation and write-offs on non-current assets 131 11 7 213 121 483 238
Valuation adjustments, provisions and losses 2) 86 42 0 150 (40) 238) 2 386
Profit before extraordinary items, taxes 1) 617 853 82 847 (13) 2,386
5)
Extraordinary expenses/(income), net (1) (1) 1 1 (22) (22) (22
65 5)
Taxes 168 202 13 187 635 635
Net operating profit before minority interests 1) 450 652 68 659 (56) 1,773) 1 773
Amortisation of acquired intangible assets, ) 298
net of tax, and goodwill 14 3 19 263 (1) 298
Net profit before minority interests 436 649 49 396 (55) 1,475) 1 475
Minority interests (22) (7) 0 0 (18) (47) (47
Net profit 414 642 49 396 (73) 1,428) 1 428
1,726) 1 72
Net operating profit 1) 428 645 68 659 (74)
Value added 3) 232 585 34 244 (257) 838
10,823 4)
Average allocated equity capital 3,275 1,331 16,836
16.1% 4)
Return on average equity capital n/a n/a 9.4%
Return on average equity capital (operating) 1) 16.6% 4) n/a n/a 15.7%
Allocated equity capital as of 1 April 2001 13,764 3,513 1,366 17,325
1)
Excl. amortisation of acquired intangible assets and goodwill.
2)
Additional/(lower) credit-related valuation adjustments at Group level
resulting from the difference between the statistical and actual credit
(33) 1 – 24
provisions.
3)
Value Added is a measure of value creation in the period under review. It is derived from Credit Suisse Group’s Value Based Analysis (VBA) and complements the per-
formance metrics which are currently used, but does not replace them. The measure is aimed at enhancing the management’s awareness of value creation. For this
purpose, accounting figures are adjusted by adding back accounting distortions such as selected non-cash charges (e.g. amortisation of goodwill), and cost of equity is
charged to the business unit as well as the consolidated accounts.
4)
For Winterthur Group within Credit Suisse Financial Services, average invested capital is used for the calculation of return on invested capital (ROIC).
5)
Including a previously announced restructuring charge of CHF 57 million after tax for the Luxembourg-based pan-European online brokerage platform.
4
6. Overview of assets under management/client assets
31 March 2001 31 Dec. 2000 Change
Assets under management in CHF bn in CHF bn in %
Credit Suisse Financial Services
276.4 273.8 0.9 0.9
Assets under management
Credit Suisse Group has adjusted its
145.3 142.6 1.9
– of which discretionary
definition of assets under manage-
291.7 289.6 0.7 1.9
Client assets
ment and, for the first time, has dis-
closed a broader category, client as- 0.7
Credit Suisse Private Banking
463.6 456.4 1.6
Assets under management
sets, to reflect the emerging industry
110.7 108.7 1.8 1.5
– of which discretionary
definition of both asset categories.
502.2 495.6 1.3 –
Client assets
Assets under management in-
clude assets which are placed with 1.1
Credit Suisse Asset Management
485.4 487.2 (0.4) (0.4
Assets under management
Credit Suisse Group entities for in-
356.7 360.1 (0.9) (0.9
– of which discretionary
vestment purposes or which – in
485.4 487.2 (0.4) (0.4
Client assets
the case of insurance business –
underlie insurance contracts. Client Credit Suisse First Boston
140.3 142.1 (1.3) (1.3
Assets under management
assets is a broader metric and also
41.9 38.1 10.0
– of which discretionary
includes transactional accounts and
35.7 31.5 13.3
– of which Private Equity
custody, e.g. corporate liquidity
809.4 747.1 8.3
Client assets
funds, wholesale custody and
Credit Suisse Group (consolidated)
broking assets. Deposits from
1,365.7 1,359.5 0.5
Assets under management
banks and brokers are usually ex-
654.6 649.5 0.8
– of which discretionary
cluded from assets under manage-
2,088.7 2,019.5 3.4
Client assets
ment and client assets. Net new
assets exclude interest and
dividends. Previously reported fig-
Change vs.
ures have been adjusted. Net new assets Q1/2001 Q4/2000 Q1/2000 Q1/2000
in CHF bn in CHF bn in CHF bn in %
4.6 3.4 5.2 (12)
Credit Suisse Financial Services
8.4 4.7 5.6 50
Credit Suisse Private Banking
Credit Suisse Asset Management 1) 6.8 9.3 10.3 (34)
0.1 (0.5) 0.4 (75)
Credit Suisse First Boston
19.9 16.9 21.5 (7)
Credit Suisse Group
1)
Net new discretionary assets.
under management increased by 0.5%
The first quarter of 2001 was charac-
terised by a challenging market envi- compared with year-end 2000.
ronment but reinforced Credit Suisse Operating earnings per share for
Group’s strategy of being a broad- the first quarter of 2001 were CHF
based leader in its core businesses of 5.74, which included the new shares
asset gathering and investment bank- created in association with the DLJ
ing. Net operating profit for the first acquisition. This compared to CHF
quarter was CHF 1.7 billion, a de- 7.19 per share for the first quarter and
crease of 12% over an extraordinarily CHF 6.47 per share for the fourth
strong first quarter 2000 result of CHF quarter of 2000.
2.0 billion. Compared with the result Operating income amounted to
for the fourth quarter of 2000 of CHF CHF 11.1 billion for the first quarter of
1.9 billion (excluding the DLJ restruc- 2001, corresponding to an increase
turing charge), net operating profit was of 21% over the first quarter and of
down modestly, by 8%. The results for 4% over the fourth quarter of 2000.
the fourth quarter of 2000 include two Operating expenses were up 35% over
months of the DLJ acquisition. Assets the first quarter and 7% over the fourth
www.credit-suisse.com 5
7. AN OVERVIEW OF CREDIT SUISSE GROUP
quarter of 2000, to CHF 8.0 billion. sulting from improved market
Operating income composition
Both reflect the acquisition of DLJ on conditions and the first stages of
14% 14% 3 November 2000. Reported net profit the implementation of a new strate-
for the first quarter of 2001 was CHF gic plan. Fixed Income revenues
1.4 billion, compared to CHF 1.9 billion were up 100% over the first
for the first quarter and CHF 0.6 billion quarter and 118% over the fourth
28%
(including the DLJ restructuring charge) quarter of 2000.
for the fourth quarter of 2000. The dif-
44%
ference between reported net profit and • Winterthur Life & Pensions had a
net operating profit is the exclusion of very strong first quarter with growth
acquisition-related non-cash items such in premiums earned at 19%,
Balance sheet business
as amortisation of goodwill and intangi- demonstrating its resilience in diffi-
Commission and service fees
ble assets. These items net of tax to- cult capital markets. Net operating
Trading
talled CHF 298 million (CHF 0.99 per profit for Winterthur Life &
Insurance
share) for the first quarter of 2001, Pensions was up 23% on the first
compared to CHF 46 million (CHF quarter of last year.
0.17 per share) for the first quarter and
CHF 216 million (CHF 0.74 per share) • As a result of the divesture of its
for the fourth quarter of 2000. The first insurance business for large multi-
Operating income contribution by
quarter also included a previously national companies, Winterthur
business unit
announced restructuring charge of CHF Insurance is now one of the very
57 million after tax for the Luxembourg- few solely retail non-life insurers.
22%
based pan-European online brokerage Net operating profit at Winterthur
platform. Excluding the restructuring Insurance was up 6% over the first
61%
charge, net operating profit was down quarter of 2000.
9% on the first quarter and down 5%
on the fourth quarter of 2000.
14% Outlook 2001
Credit Suisse Group's operating re-
3%
turn on equity was 16.7% for the first Credit Suisse Group continues to
CSFS quarter of 2001, compared with 25.5% believe that the long-term prospects for
CSPB for the first quarter and 19.0% for the the financial services industry will
CSAM fourth quarter of 2000, reflecting the provide a fundamentally attractive oper-
CSFB change in market conditions. The Group ating environment for its core activities.
repurchased 1.9 million shares up to The Group is pleased with its perform-
1 May 2001 for cancellation at the ance in a very difficult first quarter and
Annual General Meeting on 1 June with the progress made with the DLJ
2001, in line with its previously acquisition, where it is ahead of its
announced share repurchase pro- goals in most measures. The difficult
gramme. capital markets environment is continu-
Net operating profit contribution by
business unit ing in the second quarter, affecting
both the asset gathering and the
Highlights in the first quarter of 2001
24%
investment banking units. While the
36%
• The net inflow of new assets was Group is confident about future busi-
strong across all business units. ness prospects, it expects 2001 will
Credit Suisse Private Banking con- continue to be a very challenging year.
tributed CHF 8.4 billion, Credit
4%
Suisse Asset Management CHF
36%
6.8 billion and Credit Suisse
Financial Services CHF 4.6 billion
CSFS to the Group’s net new assets,
CSPB which totalled CHF 19.9 billion.
CSAM
CSFB • The Fixed Income division at Credit
Suisse First Boston reported a
dramatic return to profitability, re-
6
8. REVIEW OF BUSINESS UNITS
New developments in the first quarter of 2001
Credit Suisse Group announced in March that it planned a par value
reduction of CHF 8 per share in lieu of a dividend, and a 4-for-1 share
split resulting in a new par value of CHF 3 per share. If approved by
the Annual General Meeting on 1 June, the capital reduction of CHF 8
will be paid out on 15 August 2001. The split brings the share price
more in line with that of the Group’s international peers, and is part of
the preparation for a listing of Credit Suisse Group’s ADR (American
Depositary Receipt) in the US this year.
Swiss Prime Site, the real estate investment company managed by
Credit Suisse Asset Management, announced in April it was in merger
talks with Feldschloesschen-Huerlimann Holding. If approved, the deal
would create Switzerland’s largest real estate company, managing a
property portfolio worth CHF 2.6 billion (USD 1.5 billion).
Credit Suisse First Boston continued to add market share across
key businesses. In Europe, it topped Institutional Investor’s February
equity research rankings, adding to its number one pro-forma ranking
in the US. Credit Suisse First Boston also ranked number one in
European primary equity issuance in the first quarter of 2001. In terms
of US mergers and acquisitions, it ranked number three in the first
quarter, and in fixed income was ranked third globally in debt primary
issuance and second in high yield.
Credit Suisse Private Banking introduced the Protected Investment
Note (PIN), which offers high returns regardless of equity market per-
formance – targeting around 13% p.a. based on a 10-year investment
period – and provides capital protection. These two features make PIN
highly attractive in the current environment of stock market uncertainty
and low interest rates.
Credit Suisse Life launched the first ever unit-linked insurance
product in Japan. Combining the advantages of life insurance and a
unit trust, this product looks set to grow rapidly in Japan, where there
is increasing concern about the capacity of the public pension system.
www.credit-suisse.com 7
9. REVIEW OF BUSINESS UNITS
Credit Suisse Financial Services
profit for non-life up 6% and for life up
financial services business. Net new
23%) demonstrate the stable source of
assets amounted to CHF 4.6 billion.
earnings and growth in difficult capital
Credit Suisse Financial Services markets. Credit Suisse Personal Finance
achieved a good start to the year despite is rapidly expanding its multi-channel of-
highly challenging market conditions. fering in key European markets. As
Excluding Credit Suisse Personal previously announced, this move will
Thomas Wellauer
Finance, which is still investing in pan- lead to significantly higher expenditure
Chief Executive Officer
European expansion, net operating profit than in the previous year. The launch of
for the first quarter amounted to CHF Personal Finance in Spain and Germany
Credit Suisse Financial Services report-
519 million, up 9.3% on the correspon- is planned for the second half of the
ed a net operating profit of CHF 428
ding period of the previous year but year. The pan-European online broker-
million for the first quarter of 2001. This
5.4% lower than in the fourth quarter of age platform is, however, to be discontin-
5.1% decrease on the first quarter of
2000. The annualised return on average ued.
2000 (+5.9% compared to the fourth
equity capital was 16.1%. Strong results As of 1 January 2001, results will
quarter) was attributable to increased
from insurance operations (net operating be reported for the business units
investments in the European personal
Overview of business area Credit Suisse Financial Services Credit Credit
Winterthur Credit Suisse Suisse
Q1/2001 Winterthur Life & Suisse Personal Financial
in CHF m Insurance Pensions Banking Finance Services
815 1) 648 1)
Operating income 983 16 2,462
575 1) 319 1)
Operating expenses 615 119 1,628
240 1) 329 1)
Gross operating profit 368 (103) 834
Depreciation and write-offs on non-current assets 2) 30 62 33 6 131
Valuation adjustments, provisions and losses 3) 0 0 86 0 86
Profit before extraordinary items, taxes 2) 210 267 249 (109) 617)
Extraordinary expenses/(income), net 0 0 (2) 1 (1)
Taxes 60 63 64 (19) 168
Net operating profit before minority interests 2) 150 204 187 (91) 450
Amortisation of acquired intangible assets and goodwill 5 5 3 1 14
Net profit before minority interests 145 199 184 (92) 436
Minority interests (17) (5) 0 0 (22)
Net profit 128 194 184 (92) 414
Net operating profit 2) 133 199 187 (91) 428
6,363 4) 10,823 4)
Average allocated equity capital 4,428 32
21.6% 4) 16.1% 4)
Return on average equity capital 16.6% n/a
Return on average equity capital (operating) 2) 22.3% 4) 16.6% 4)
16.9% n/a
9,479 4)
Allocated equity capital as of 1 April 2001 4,250 35 13,764
Assets under management in CHF bn 5) 32.7 107.1 130.8 5.8 276.4
– of which discretionary 32.7 107.1 2.6 2.9 145.3
Net new assets n/a 2.1 2.1 0.4 4.6
Client assets 32.7 107.1 146.1 5.8 291.7
1)
Defined as premiums earned (net), less claims incurred and expenses for processing claims as well as actuarial provisions, less commissions (net), plus investment in-
come from insurance business; expenses from the handling of both claims and investments are allocated to revenue; personnel expenses Winterthur Insurance: CHF
103 m, Winterthur Life & Pensions: CHF 28 m; operating expenses Winterthur Insurance: CHF 51 m, Winterthur Life & Pensions: CHF 30 m.
2)
Excl. amortisation of acquired intangible assets and goodwill.
3)
Additional/(lower) credit-related valuation adjustments at Group level resulting from
– – (33) – (33)
the difference between the statistical and actual credit provisions.
4)
For Winterthur Group, average invested capital is used for calculation of return on invested capital (ROIC).
5)
According to the definition of assets under management on page 5.
8
10. Winterthur Insurance income statement
Veränderung
(non-life business) Change vs. seit
Q1/2001 Q4/2000 Q1/2000 Q1/2000 Q1/2000
in CHF m in CHF m in CHF m in % in %
6,774 3,715 4,902 38 38
Gross premiums written
(601) (422) (557) 8 8
Reinsurance ceded
6,173 3,293 4,345 42 42
Net premiums written
Change in provision for unearned premiums and in
(2,556) 251 (1,260) 103 103
provision for future policy benefits (health)
3,617 3,544 3,085 17 17
Net premiums earned
(2,799) (2,741) (2,401) 17
Claims and annuities incurred, net
(112) (94) (94) 19
Dividends to policyholders incurred, net
(1,049) (1,033) (955) 10
Operating expenses, net (incl. commissions paid)
(343) (324) (365) (6)
Underwriting result, net
529 658 532 (1)
Net investment income
7 27 23 (70)
Interest received on deposits and bank accounts
(26) (34) (34) (24)
Interest paid
Other income/(expenses) (incl. exchange rate differences) 1) 2) 43 (22) 27 59 59
1) 210 305 183 15 15
Profit before extraordinary items, taxes
0 0 0 – –
Extraordinary expenses/(income), net
(60) (73) (47) 28
Taxes
Net operating profit before minority interests 1) 150 232 136 10 10
(5) (4) (4) 25
Amortisation of goodwill
145 228 132 10
Net profit before minority interests
10
(17) (28) (10) 70
Minority interests
5) 70
128 200 122
Net profit
5
6 2 319 757 -
1) 133 204 126
Net operating profit
12
1)
Excl. amortisation of goodwill.
2)
For Q1/2001, incl. a partial recognition of CHF 43 million before tax related to the sale of Winterthur International.
Winterthur Insurance key information
(non-life business)
Q1/2001 Q4/2000 Q1/2000
106.4% 106.5% 108.8%
Combined ratio (excl. dividends to policyholders)
77.4% 77.2% 77.8%
Claims ratio
29.0% 29.3% 31.0%
Expense ratio
31 March 2001 31 Dec. 2000
32.7 32.5
Assets under management in CHF bn
30,122 26,653
Technical provisions in CHF m
22,244 21,796
Number of employees
www.credit-suisse.com 9
11. REVIEW OF BUSINESS UNITS
Winterthur Life & Pensions income statement 1999
1999
(life business) Change vs. in Mio USD
Q1/2001 Q4/2000 Q1/2000 Q1/2000 1999
in CHF m in CHF m in CHF m in % in Mio USD
6,189 4,225 5,221 19
Gross premiums written
(51) (77) (95) (46)
Reinsurance ceded
6,138 4,148 5,126 20
Net premiums written
(14) (1) 0 –
Change in provision for unearned premiums
6,124 4,147 5,126 19
Net premiums earned
(3,686) (2,675) (2,350) 57
Death and other benefits incurred
(2,094) (1,597) (3,080) (32)
Change in provision for future policyholder benefits
(403) (229) (711) (43)
Dividends to policyholders incurred
(372) (470) (393) (5)
Operating expenses, net (incl. commissions paid)
793 1,329 1,772 (55)
Net investment income
13 22 22 (41)
Interest received on deposits and bank accounts
(32) (29) (29) 10
Interest on bonuses credited to policyholders
(37) (61) (59) (37)
Other interest paid
Other income/(expenses) (incl. exchange rate differences) 1) (39) (180) (92) (58)
Profit before extraordinary items, taxes 1) 267 257 206 30
0 0 0 –
Extraordinary expenses/(income), net
(63) (31) (30) 110
Taxes
Net operating profit before minority interests 1) 204 226 176 16
(5) (4) (3) 67
Amortisation of goodwill
199 222 173 15
Net profit before minority interests
(5) (14) (14) (64)
Minority interests
194 208 159 22
Net profit
Net operating profit 1) 199 212 162 23 241
9 753
1)
Excl. amortisation of goodwill.
5 368
Winterthur Life & Pensions key information
(life business)
Q1/2001 Q4/2000 Q1/2000
Expense ratio 1) 6.1% 11.3% 7.7%
2)
19 bp 21 bp 20 bp
Net return on average technical provisions
3)
2.1 0.8 1.4
Net new assets in CHF bn
31 March 2001 31 Dec. 2000
Assets under management in CHF bn 4) 107.1 104.7
107,380 105,522
Technical provisions in CHF m
7,095 6,562
Number of employees
1)
Operating expenses/earned premiums.
2)
Net profit after tax before minorities/average technical provisions.
3)
Based on change in technical provisions for traditional business, adjusted for technical interests; net cash flow unit-linked business; and change in off-balance sheet
business such as funds.
4)
Based on savings-related provisions for policyholders plus off-balance sheet assets.
10
12. Winterthur Insurance, Winterthur Life & life insurance business in Switzerland operating profit for life business was
Pensions, Credit Suisse Banking as and Spain. Adjusted for the acquisition CHF 199 million, up 23% on the first
well as Credit Suisse Personal of Colonial Life UK and the largest quarter of 2000.
Finance. Technology and Services as Czech pension fund VOPF (Vojensky The unit-linked products grew
well as Credit Suisse e-Business Otevreny Penzijni Fond), premium in- 30% in the first quarter (5% excluding
supply core services to the other Credit come was up 13.3%. Applying the acquisitions). Although weak equity
Suisse Financial Services business new definition, net new assets grew by markets slowed their growth, these
units, and the corresponding revenues 2% (versus 1.6% in the first quarter of continue to be a priority for Winterthur
and expenses are included in the 2000). As a result of its acquisition of Life & Pensions as part of its strategy
business units served. e-brokerage VOPF, Winterthur Life & Pensions of achieving a balanced portfolio of
activities are included under Credit is now number one in the Czech unit-linked and traditional life products.
Suisse Personal Finance. Republic’s flourishing pension fund The coming months are likely to
business and has a market share of bring slower premium growth due to
more than 25%. Despite a reduction of seasonal factors.
Winterthur Insurance
Winterthur Insurance posted a 17% the investment return to 6.3%, the net
rise in premiums earned versus the first
quarter of 2000, or a rise of 2% com-
pared to the fourth quarter. Adjusted
following the acquisition of the UK-
based company NIG, the premium in-
crease was 7% on the same period of
the previous year. At 77.4%, the
claims ratio was slightly below that of
the first quarter of 2000, with both
figures reflecting normal weather-
related first quarter losses. Continued
management focus on expense con-
trol, coupled with strong growth, result-
ed in a two-percentage-point decrease
in the expense ratio year-on-year to
29.0%. With weaker financial market
conditions, Winterthur Insurance’s
investment return declined to 6.3%
from 6.7% a year ago. Results were
particularly strong in the UK through
the direct business Churchill. The ability
to increase prices in the UK and other
European markets contributed to im-
proved results. Winterthur Insurance
achieved a net operating profit for the
first quarter of 2001 of CHF 133 mil-
lion, which was up 6% over the first
quarter of 2000 and, in the context of
anticipated seasonal factors, down
35% on the previous quarter.
Winterthur Life & Pensions
Winterthur Life & Pensions grew its
premiums by 19% compared with the
first quarter of 2000, to CHF 6.1 bil-
lion, and saw very positive develop-
ments in premium volumes from group
www.credit-suisse.com 11
13. REVIEW OF BUSINESS UNITS
Credit Suisse Banking income statement
Change vs.
Q1/2001 Q4/2000 Q1/2000 Q1/2000
in CHF m in CHF m in CHF m in %
614 611 584 5
Net interest income
281 285 320 (12)
Net commission and service fee income
84 85 92 (9)
Net trading income
4 8 11 (64)
Other ordinary income
983 989 1,007 (2)
Operating income
403 390 356 13
Personnel expenses
212 257 249 (15)
Other operating expenses
615 647 605 2
Operating expenses
368 342 402 (8)
Gross operating profit
Depreciation and write-offs on non-current assets 1) 33 45 10 230
Valuation adjustments, provisions and losses 2) 86 114 167 (49)
Profit before extraordinary items, taxes 1) 249 183 225 11
(2) 2 (21) (90)
Extraordinary expenses/(income), net
64 47 58 10
Taxes
Net operating profit before minority interests 1) 187 134 188 (1)
3 3 3 0
Amortisation of goodwill
184 131 185 (1)
Net profit before minority interests
0 0 (1) –
Minority interests
184 131 184 0
Net profit
Net operating profit 1) 187 134 187 0
1)
Excl. amortisation of goodwill.
2)
Additional/(lower) credit-related valuation adjustments at Group level resulting from the difference
(33) (59) (48)
between the statistical and actual credit provisions.
Credit Suisse Banking
Credit Suisse Banking, the business Net new assets amounted to CHF 2.1
unit serving private and corporate billion. Overall, assets under manage-
clients in Switzerland, reported a net ment remained stable at CHF 130.8
operating profit of CHF 187 million in billion despite market conditions. In
the first quarter of 2001, the same as corporate client business, Credit Suisse
the first quarter last year, and up 40% Banking posted significant growth in
on the previous quarter. It succeeded in the volume of trade finance, while also
maintaining last year’s strong first quar- achieving a substantial increase in rev-
ter performance, despite deteriorating enues from foreign exchange business.
conditions in the interest business and Since end-2000, the number of Direct
in securities. A 43% drop in income Net customers has risen 10% to
from securities commissions, including 288,590. Although the volume of elec-
lower sales of mutual funds, led to a tronic payment orders continued to rise
cost/income ratio of 66.2%, slightly sharply, the number of securities trans-
higher than in 2000. Return on equity actions executed stood at 58,000 –
rose marginally to 16.6%. Private client well below the previous year’s average
business recorded an annualised of 72,000.
increase of 5% in mortgage volumes.
12
14. Credit Suisse Banking balance sheet information
31 March 2001 31 Dec. 2000
in CHF m in CHF m
102,621 100,653
Total assets
30,641 28,940
Due from customers
64,904 64,616
Mortgages
32,657 33,322
Due to customers in savings and investment deposits
35,063 31,287
Due to customers, other
Credit Suisse Banking key information
Q1/2001 Q4/2000 Q1/2000
Cost/income ratio 66.2% 70.3% 61.4%
Cost/income ratio (operating) 1) 65.9% 70.0% 61.1%
Return on average equity capital (reported) 16.6% 12.2% 16.3%
Return on average equity capital (operating) 1) 16.9% 12.5% 16.6%
Average allocated equity capital in CHF m 4,428 4,290 4,540
Pre-tax margin (reported) 25.2% 18.0% 24.1%
Pre-tax margin (operating) 1) 25.5% 18.3% 24.4%
Personnel expenses/operating income 41.0% 39.4% 35.4%
Net interest margin 242 bp 242 bp 237 bp
Loan growth 2.2% 1.0% 1.4%
Net new assets in CHF bn 2.1 2.1 3.0
31 March 2001 31 Dec. 2000
Deposit/loan ratio 70.9% 69.1%
Assets under management in CHF bn 130.8 130.8
Number of branches 234 235
Number of employees 11,576 11,438
Allocated equity capital as of 1 April/1 January 2001 in CHF m 4,250 4,605
2)
BIS tier 1 ratio 6.7% 7.1%
1)
Excl. amortisation of goodwill.
2)
Legal entity Credit Suisse.
www.credit-suisse.com 13
15. REVIEW OF BUSINESS UNITS
Credit Suisse Personal Finance income statement
Change vs.
Q1/2001 Q4/2000 Q1/2000 Q1/2000
in CHF m in CHF m in CHF m in %
3 1 2 50 (27
Net interest income
11 6 9 22 77
Net commission and service fee income
2 0 2 0 78
Net trading income
0 1 0 – –
Other ordinary income
16 8 13 23 40
Operating income
49 47 17 188 50
Personnel expenses
70 143 26 169 34
Other operating expenses
119 190 43 177 46
Operating expenses
(103) (182) (30) 243 24
Gross operating profit
1) 6 7 1 500 74
Depreciation and write-offs on non-current assets
0 1 0 – (32
Valuation adjustments, provisions and losses
Profit before extraordinary items, taxes 1) (109) (190) (31) 252 33
1 0 0 – 29
Extraordinary expenses/(income), net
(19) (45) (7) 171
Taxes 34
Net operating profit before minority interests 1) (91) (145) (24) 279
1 1 1 0
Amortisation of goodwill 285
(92) (146) (25) 268
Net profit before minority interests 25
0 0 0 –)
Minority interests 200
(92) (146) (25) 268
Net profit 25
Net operating profit 1) (91) (145) (24) 279 34 58
59
1)
Excl. amortisation of goodwill.
n/a
6.756
27,267, and the volume of transactions
Credit Suisse Personal Finance
Credit Suisse Personal Finance plans to executed was only marginally below the
establish a presence in the German and previous year’s average. youtrade as-
Spanish markets in 2001, and prepara- sets under management declined 5.9%
tions for its launch in the second half of as a result of market conditions, while
the year are well on schedule in both net new assets amounted to CHF 103
countries. With the acquisition of broker million.
and asset manager General de Valores The results for the fourth quarter of
y Cambios, announced in April, 2000 included expensing of previously
Credit Suisse Personal Finance has se- capitalised assets and continued invest-
cured a good starting position in Spain. ment in the business, hence the de-
In the Italian market, Credit Suisse crease in operating expenses recorded
(Italy) continued to perform well, in the first quarter of 2001. Given its
with net new assets amounting to CHF continuing high level of investment
350 million in the first quarter. Swiss activity, Credit Suisse Personal Finance
online broker youtrade recorded a cus- reported a first quarter operating loss of
tomer number increase of 8% to CHF 91 million.
14
16. Credit Suisse Personal Finance key information
Q1/2001 Q4/2000 Q1/2000
Personal Finance
Growth in assets under management 1.4% 1.5% 25.9%
– of which net new assets 7.2% 8.4% 18.7%
– of which market movement and structural effects (5.8%) (6.9%) 7.2%
youtrade
Number of transactions (in ’000s) 108 95 133
Credit Suisse Personal Finance
Average allocated equity capital in CHF m 32 n/a n/a
31 March 2001 31 Dec. 2000
Personal Finance
Assets under management in CHF bn 4.9 4.8
Number of clients 19,381 17,898
Number of advisors 337 331
youtrade
Assets under management in CHF bn 0.9 0.9
Number of clients 27,267 25,228
Credit Suisse Personal Finance
Number of employees 900 764
Allocated equity capital as of 1 April/1 January 2001 in CHF m 35 29
www.credit-suisse.com 15
