FORM 6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C.
20549
Report of Foreign Private Issuer
Dated August 4, 2004
Pursuant
to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the
month of August 4, 2004
Commission File Number 001-15244
CREDIT
SUISSE GROUP
(Translation of registrant's
name into English)
Paradeplatz
8, P.O. Box 1, CH-8070 Zurich, Switzerland
(Address of principal
executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F 
Form
40-F 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
 |
Media Relations |
 |
|
Credit Suisse Financial Services:
Achieves Net Income of CHF 2.2 Billion for the Credit Suisse First Boston: Delivers
Net Income of CHF 1.2 Billion for the
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| Financial Highlights | ||||||||||
| in CHF million | 2Q2004 | 1Q2004 | 2Q2003 | Change in % | Change in % | |||||
| from 1Q2004 | from 2Q2003 | |||||||||
| Net revenues | 13,510 | 16,563 | 12,136 | (18 | ) | 11 | ||||
| Total operating expenses | 6,260 | 6,314 | 7,584 | (1 | ) | (17 | ) | |||
| Net income | 1,457 | 1,861 | (556 | ) | (22 | ) | — | |||
| Return on equity | 16.6% | 21.3% | (6.5% | ) | — | — | ||||
| Basic earnings per share (in CHF) | 1.26 | 1.56 | (0.48 | ) | — | — | ||||
| BIS tier 1 ratio | 11.6% | 11.5% | n/ a | — | — | |||||
| n/ a: not applicable | ||||||||||
Zurich, August 4, 2004 – Credit Suisse Group today reported net income of CHF 3,318 million for the first half of 2004, compared to the loss reported under US GAAP in the first half of 2003. The Group’s net income for the second quarter of 2004 amounted to CHF 1,457 million, compared to CHF 1,861 million in the strong first quarter of 2004. Credit Suisse Financial Services contributed CHF 1,070 million to the Group’s second quarter 2004 result, driven primarily by strong revenue generation. Private Banking achieved solid net revenues and attracted CHF 7.9 billion in net new assets. Corporate & Retail Banking delivered a strong quarterly performance, based on good underlying results and benefiting from gains on interest rate derivatives. Both insurance segments recorded a good operating performance as well as solid investment income. Credit Suisse First Boston contributed CHF 430 million to the Group’s second quarter 2004 result and achieved a return on average allocated capital of 14.5%. Credit Suisse Group’s return on equity was 16.6% in the second quarter of 2004.
Page 1 of 11
Oswald J. Grübel, CEO of Credit Suisse Group, stated, “We are pleased with our results in the first half of 2004, with healthy revenue growth at Private Banking and Corporate & Retail Banking accompanied by a continued good operating performance and solid investment income at Winterthur. Following a strong first quarter, Credit Suisse First Boston achieved satisfactory second quarter results given the challenging environment.”
He continued, “Our second quarter results not only underscore the Group’s fundamental strengths but also pinpoint the areas we must build on. We have defined a series of key growth measures: in Private Banking, we will continue to concentrate on growth markets worldwide, as well as targeting profitable growth in key European markets. In Corporate & Retail Banking in Switzerland, the emphasis will be on increasing market share in the lending business and in retail investment products, as well as on expanding business with investment-grade corporates. At Credit Suisse First Boston, our main goal is to drive revenue growth by building on our successful businesses such as high-yield and private equity and by increasing the scale of existing businesses such as large cap banking and prime brokerage, as well as entering new areas with promising growth potential. In insurance, we remain firmly committed to enhancing business momentum and to positioning Winterthur as one of the leading retail insurers in key European and other selected markets, while exploring options to capture value for stakeholders.”
He concluded, “We have a strong team of dedicated professionals in place to drive profitable growth. Together, we will implement our strategy of providing the Group’s full expertise to our clients and delivering operational excellence, while remaining committed to fostering a diverse, team-oriented culture and increasing accountability. With the more powerful, integrated Group structure announced at the end of June, I firmly believe that our company is ideally positioned to leverage its strong franchises and underpin its competitive position as a leader in our industry.”
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Net New Assets
| Net New Assets and Assets under Management (AuM) for 2Q2004 | ||||||
| in CHF billion | Net New Assets | Total AuM | Change in AuM | |||
| % from 31.03.04 | ||||||
| Private Banking | 7.9 | 537.2 | (0.6 | ) | ||
| Corporate & Retail Banking | (0.3 | ) | 53.3 | (2.0 | ) | |
| Life & Pensions | 0.1 | 117.4 | (1.0 | ) | ||
| Non-Life | n/ a | 25.3 | (1.9 | ) | ||
| Credit Suisse Financial Services | 7.7 | 733.2 | (0.8 | ) | ||
| Institutional Securities | (0.6 | ) | 16.3 | (7.4 | ) | |
| Wealth & Asset Management | 2.0 | 477.8 | (1.3 | ) | ||
| Credit Suisse First Boston | 1.4 | 494.1 | (1.6 | ) | ||
| Credit Suisse Group | 9.1 | 1,227.3 | (1.1 | ) | ||
Credit Suisse Group reported CHF 9.1 billion in net new assets in the second quarter of 2004. Private Banking contributed net new assets of CHF 7.9 billion, corresponding to an annualized growth rate of 5.8% and thus exceeding its mid-term target for the second quarter in succession. A net new asset inflow of CHF 2.0 billion was reported at Wealth & Asset Management. The Group’s total assets under management amounted to CHF 1,227.3 billion as of June 30, 2004, a marginal decrease of 1.1% from March 31, 2004, due to market valuations and foreign exchange impacts.
Credit Suisse Financial Services
| CSFS Business Unit Results | ||||||||||
| in CHF million | 2Q2004 | 1Q2004 | 2Q2003 | Change in % | Change in % | |||||
| from 1Q2004 | from 2Q2003 | |||||||||
| Net revenues | 9,039 | 11,880 | 8,370 | (24 | ) | 8 | ||||
| Total operating expenses | 2,906 | 2,751 | 4,189 | 6 | (31 | ) | ||||
| Net income | 1,070 | 1,112 | (646 | ) | (4 | ) | — | |||
Credit Suisse Financial Services reported net income of CHF 2,182 million for the first half of 2004, compared to a loss for the first half of 2003. In the second quarter of 2004, the business unit recorded net income of CHF 1,070 million, compared to net income of CHF 1,112 million in the first quarter of 2004.
| CSFS Net Income by Segment | ||||||||||
| in CHF million | 2Q2004 | 1Q2004 | 2Q2003 | Change in % | Change in % | |||||
| from 1Q2004 | from 2Q2003 | |||||||||
| Private Banking | 665 | 681 | 401 | (2 | ) | 66 | ||||
| Corporate & Retail Banking | 256 | 189 | 163 | 35 | 57 | |||||
| Life & Pensions | 67 | 139 | (1,301 | ) | (52 | ) | — | |||
| Non-Life | 82 | 103 | 91 | (20 | ) | (10 | ) | |||
Page 3 of 11
Private Banking reported net income of CHF 665 million in the second quarter, practically unchanged compared to the strong first quarter of 2004. Net revenues decreased 4% compared to the first quarter of 2004, driven mainly by lower brokerage income, offset by the positive change in the fair value of interest rate derivatives. Total operating expenses were virtually unchanged compared to the first quarter of 2004. The cost/income ratio stood at 57.9%, up 2.6 percentage points compared to the first quarter of 2004. Private Banking’s gross margin remained high at 139.1 basis points, down 7.2 basis points compared to the first quarter of 2004 but up 14.5 basis points compared to the second quarter of 2003.
Corporate & Retail Banking posted strong net income of CHF 256 million in the second quarter of 2004, up 35% versus the prior quarter. Net revenues rose 21% compared to the first quarter of 2004, mainly reflecting the positive change in the fair value of interest rate derivatives. Total operating expenses rose 12% compared to the first quarter of 2004, as efficiency improvements were more than offset by higher incentive-related compensation accruals in line with the improved result. Credit provisions remained moderate in the second quarter given the ongoing favorable risk profile of the lending portfolio. The segment further improved its cost/income ratio to 58.2%, down 4.6 percentage points compared to the first quarter of 2004. The return on average allocated capital increased to 20.4% in the second quarter, compared to 15.1% in the first quarter of 2004.
Life & Pensions reported net income of CHF 206 million in the first half of 2004, compared to a net loss of CHF 1,818 million in the first half of 2003. This year-on-year improvement was due primarily to a goodwill impairment of CHF 1,510 million and a cumulative effect of a change in accounting for provisions for policyholders and annuities, both of which were recognized in the first half of 2003. The total business volume, which includes deposits from policyholders and gross premiums written on traditional business, increased 1% compared to the first half of 2003. Administration expenses declined 13% compared to the first half of 2003 due to efficiency gains. Net investment income rose 12% to CHF 2,403 million compared to the first half of 2003 and the net investment return was 5.1%. The return on average allocated capital amounted to 7.9% in the first half of 2004.
Page 4 of 11
Non-Life reported net income of CHF 185 million in the first half of 2004, up 1% compared to the first half of 2003, as an improved operating performance and higher investment income were partially offset by provisions relating to discontinued businesses in the UK and France as well as by restructuring charges related primarily to the streamlining of its Spanish operations. Net premiums earned rose 9% in the first half of 2004 compared to the first half of 2003, and the combined ratio improved 1.6 percentage points to 99.0%. The claims ratio stood at 74.0%, essentially unchanged versus the first half of 2003, and the expense ratio fell 1.8 percentage points, as the increase in expenses was contained to 1% compared to net premium growth of 9%. The segment reported net investment income of CHF 599 million, up from CHF 420 million in the first half of 2003, and the net investment return was 4.8% compared to 3.9% in the same period of last year. The return on average allocated capital was 17.9% in the first half of 2004.
Winterthur also announced today that effective September 1, 2004, its Chief Financial Officer, John Dacey, will take on a new role within the Winterthur Executive Board, examining all the strategic options for Winterthur. The Board of Directors of Winterthur has appointed Hans Ulrich Lienau as his successor. Mr Lienau has extensive experience in the financial services sector and his previous positions include the role of Chief Financial Officer of GE Frankona Re Group, where he was also a Member of the Group Executive Board. Additionally, the Board of Directors of Winterthur has appointed Heinrich Linz to the newly created post of Head of Corporate Center, also effective September 1, 2004. Mr Linz was previously responsible for Special Projects at Allianz Group.
Credit Suisse First Boston
| CSFB Business Unit Results | ||||||||||
| in CHF million | 2Q2004 | 1Q2004 | 2Q2003 | Change in % | Change in % | |||||
| from 1Q2004 | from 2Q2003 | |||||||||
| Net revenues | 4,633 | 4,863 | 3,960 | (5 | ) | 17 | ||||
| Total operating expenses | 3,494 | 3,722 | 3,460 | (6 | ) | 1 | ||||
| Net income | 430 | 759 | 202 | (43 | ) | 113 | ||||
Page 5 of 11
Credit Suisse First Boston reported net income of CHF 1,189 million for the first half of 2004, compared to net income of CHF 800 million in the first half of 2003. For the second quarter of 2004, Credit Suisse First Boston recorded net income of CHF 430 million, down 43% on lower trading results compared to the first quarter but up 113% compared to the second quarter of 2003. Net revenues were down 5% compared to the first quarter and total operating expenses were down 6%. The return on average allocated capital decreased by 13.6 percentage points to 14.5% compared with the first quarter of 2004.
| CSFB Net Income by Segment | ||||||||||
| in CHF million | 2Q2004 | 1Q2004 | 2Q2003 | Change in % | Change in % | |||||
| from 1Q2004 | from 2Q2003 | |||||||||
| Institutional Securities | 129 | 623 | 155 | (79 | ) | (17 | ) | |||
| Wealth & Asset Management | 301 | 136 | 47 | 121 | — | |||||
Institutional Securities reported a 79% decrease in net income in the second quarter of 2004 from the strong prior quarter. Compared to the second quarter of 2003, net income was down 17%. The segment’s net revenues declined 22% compared to the first quarter of 2004, or 24% on a US dollar basis. Total trading revenues were down 38% compared to the first quarter of 2004, primarily reflecting significantly lower fixed income trading results due to lower proprietary trading results, reduced client activity and losses on derivatives used for risk management purposes, which do not qualify for hedge accounting. Equity trading revenues declined as convertible results were negatively impacted by lower liquidity and reduced volumes. Investment Banking revenues remained solid, with strong advisory fees and debt underwriting offset by lower equity underwriting compared with the first quarter of 2004. The segment's 2004 revenues were favorably impacted by gains on legacy assets. In aggregate, second quarter 2004 non-compensation expenses were up 11% from the first quarter of 2004, or 8% on a US dollar basis, primarily reflecting increased business activity. Compensation and benefits expenses declined 15%, or 18% on a US dollar basis, compared to the first quarter of 2004 and decreased 3% versus the second quarter of 2003, with a decline in incentive compensation in line with lower revenues.
Page 6 of 11
At Wealth & Asset Management, net income rose by 121% versus the prior quarter and was up more than 500% compared to the second quarter of 2003, due principally to increased private equity investment gains, asset management and administrative fees, and other revenues. Second quarter 2004 net revenues were up 73% compared to the first quarter of 2004, largely due to the consolidation of certain private equity funds required under a new US GAAP pronouncement, for which offsetting minority interests were recorded, as well as gains on private equity investments. Excluding the consolidation impact, net revenues increased 30% compared to the first quarter of 2004. Total operating expenses increased 2% compared to the first quarter of 2004, reflecting volume-related commission expenses.
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Outlook
With progress in a number of its core businesses and a solid pipeline of mandates and products, Credit Suisse Group is confident that it can achieve further improvements in its results. However, the Group’s
results are dependent on economic and market conditions and their impact on client activity and transaction volumes. Additionally, the Group is subject to continued cost pressure, particularly in its investment banking business. Going forward,
Credit Suisse Group is committed to achieving continued progress in its performance relative to its peers.
| Enquiries | |
| Credit Suisse Group, Media Relations | Telephone +41 1 333 88 44 |
| Credit Suisse Group, Investor Relations | Telephone +41 1 333 31 69 |
For additional information on Credit Suisse Group’s results for the second quarter and first half of 2004, we refer you to the Group’s Quarterly Report Q2 2004, as well as the Group’s slide presentation for analysts and the press, posted on the Internet at: www.credit-suisse.com/results.
Page 8 of 11
Credit Suisse Group
Credit Suisse Group is a leading global financial services company headquartered in Zurich. It provides private clients and small and medium-sized companies with private banking and financial advisory services, and
pension and insurance solutions from Winterthur. In the area of investment banking, it serves global institutional, corporate, government and individual clients in its role as a financial intermediary. Credit Suisse Group's registered shares (CSGN)
are listed in Switzerland and in the form of American Depositary Shares (CSR) in New York. The Group employs around 60,000 staff worldwide. As of June 30, 2004, it reported assets under management of CHF 1,227.3 billion.
Cautionary Statement Regarding Forward-Looking Information
This press release contains statements that constitute forward-looking statements. 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 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 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 (i) market and interest rate fluctuations; (ii) 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; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies,
and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we
conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators
with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in
which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological
changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses;
(xviii) the adverse resolution of litigation and other contingencies; and (xix) 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 risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and
Exchange Commission.
Page 9 of 11
Today’s Presentation of the Results
| Analysts’ Presentation, Zurich (English) | ||
| • | August 4, 2004, 9.00 a.m. CET / 8.00 a.m. BST / 3.00 a.m. EST at the Credit Suisse Forum St. Peter, Zurich | |
| • | Internet | |
| - | Live broadcast at www.credit-suisse.com/results | |
| - | Video playback available approximately 3 hours after the event | |
| • | Telephone | |
| - | Live audio dial-in on +41 91 610 5600 (Europe), +44 207 107 0611 (UK), or +1 866 291 4166 (USA), ask for “Credit Suisse Group quarterly results”; please dial in 10 minutes before the start of the presentation | |
| - | Telephone replay available approximately 1 hour after the event on +41 91 612 4330 (Europe), +44 207 866 4300 (UK) or +1 412 858 1440 (USA), conference ID 156# | |
| Speakers | ||
| • | Oswald J. Grübel, CEO of Credit Suisse Group | |
| • | Philip K. Ryan, Chief Financial Officer of Credit Suisse Group | |
| Media Conference, Zurich (English/German) | ||
| • | August 4, 2004, 11.00 a.m. CET / 10.00 a.m. BST / 5.00 a.m. EST at the Credit Suisse Forum St. Peter, Zurich | |
| • | Simultaneous interpreting: German – English, English – German | |
| • | Internet | |
| - | Live broadcast at www.credit-suisse.com/results | |
| - | Video playback available approximately 3 hours after the event | |
| • | Telephone | |
| - | Live audio dial-in on +41 91 610 5600 (Europe), +44 207 107 0611 (UK), or +1 866 291 4166 (USA), ask for “Credit Suisse Group quarterly results”; please dial in 10 minutes before the start of the presentation | |
| - | Telephone replay available approximately 1 hour after the event on +41 91 612 4330 (Europe), +44 207 866 43 00 (UK) or +1 412 858 1440 (USA), conference ID 025# (English) or 087# (German) | |
| Speakers | ||
| • | Oswald J. Grübel, CEO of Credit Suisse Group | |
| • | Philip K. Ryan, Chief Financial Officer of Credit Suisse Group | |
Page 10 of 11
| Segment reporting | ||||||||||||||||
| Net revenues | ||||||||||||||||
| 6 months | ||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | |||||||||||
| Private Banking | 1,869 | 1,940 | 1,478 | 3,809 | 2,965 | |||||||||||
| Corporate & Retail Banking | 950 | 787 | 789 | 1,737 | 1,563 | |||||||||||
| Life & Pensions | 3,225 | 6,028 | 3,342 | 9,253 | 9,381 | |||||||||||
| Non-Life | 2,995 | 3,125 | 2,761 | 6,120 | 5,433 | |||||||||||
| Institutional Securities 1) | 3,134 | 3,997 | 3,312 | 7,131 | 6,866 | |||||||||||
| Wealth & Asset Management 2) | 1,499 | 866 | 648 | 2,365 | 1,323 | |||||||||||
| Corporate Center | (162) | (180) | (194) | (342) | (707) | |||||||||||
| Credit Suisse Group | 13,510 | 16,563 | 12,136 | 30,073 | 26,824 | |||||||||||
| 1) Including CHF 53 million, CHF 40 million and CHF 93 million in 2Q2004, 1Q2004 and 6 months 2004, respectively, from minority interest revenues relating to the FIN 46R consolidation. | ||||||||||||||||
| 2) Including CHF 462 million, CHF 68 million and CHF 530 million in 2Q2004, 1Q2004 and 6 months 2004, respectively, from minority interest revenues relating to the FIN 46R consolidation. | ||||||||||||||||
| Net income | ||||||||||||||||
| 6 months | ||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | |||||||||||
| Private Banking | 665 | 681 | 401 | 1,346 | 797 | |||||||||||
| Corporate & Retail Banking | 256 | 189 | 163 | 445 | 318 | |||||||||||
| Life & Pensions | 67 | 139 | (1,301) | 206 | (1,818) | |||||||||||
| Non-Life | 82 | 103 | 91 | 185 | 183 | |||||||||||
| Institutional Securities | 129 | 623 | 155 | 752 | 666 | |||||||||||
| Wealth & Asset Management | 301 | 136 | 47 | 437 | 134 | |||||||||||
| Corporate Center | (43) | (10) | (112) | (53) | (557) | |||||||||||
| Credit Suisse Group | 1,457 | 1,861 | (556) | 3,318 | (277) | |||||||||||
| Consolidated statements of income (unaudited) | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Interest and dividend income | 7,896 | 7,742 | 7,504 | 2 | 5 | 15,638 | 14,031 | 11 | |||||||||
| Interest expense | (4,536) | (4,663) | (4,484) | (3) | 1 | (9,199) | (8,516) | 8 | |||||||||
| Net interest income | 3,360 | 3,079 | 3,020 | 9 | 11 | 6,439 | 5,515 | 17 | |||||||||
| Commissions and fees | 3,418 | 3,563 | 3,171 | (4) | 8 | 6,981 | 6,192 | 13 | |||||||||
| Trading revenues | 712 | 1,516 | 1,214 | (53) | (41) | 2,228 | 2,501 | (11) | |||||||||
| Realized gains/(losses) from investment securities, net | 198 | 528 | 589 | (63) | (66) | 726 | 670 | 8 | |||||||||
| Insurance net premiums earned | 4,708 | 7,417 | 4,618 | (37) | 2 | 12,125 | 12,076 | 0 | |||||||||
| Other revenues | 1,114 | 460 | (476) | 142 | – | 1,574 | (130) | – | |||||||||
| Total noninterest revenues | 10,150 | 13,484 | 9,116 | (25) | 11 | 23,634 | 21,309 | 11 | |||||||||
| Net revenues | 13,510 | 16,563 | 12,136 | (18) | 11 | 30,073 | 26,824 | 12 | |||||||||
| Policyholder benefits, claims and dividends | 4,623 | 7,594 | 4,645 | (39) | 0 | 12,217 | 12,012 | 2 | |||||||||
| Provision for credit losses | 133 | 34 | 114 | 291 | 17 | 167 | 311 | (46) | |||||||||
| Total benefits, claims and credit losses | 4,756 | 7,628 | 4,759 | (38) | 0 | 12,384 | 12,323 | 0 | |||||||||
| Insurance underwriting, acquisition and administration expenses | 1,117 | 1,059 | 1,046 | 5 | 7 | 2,176 | 2,191 | (1) | |||||||||
| Banking compensation and benefits | 3,087 | 3,428 | 3,092 | (10) | 0 | 6,515 | 6,034 | 8 | |||||||||
| Other expenses | 1,996 | 1,823 | 1,901 | 9 | 5 | 3,819 | 3,825 | 0 | |||||||||
| Goodwill impairment | 0 | 0 | 1,510 | – | – | 0 | 1,510 | – | |||||||||
| Restructuring charges | 60 | 4 | 35 | – | 71 | 64 | 60 | 7 | |||||||||
| Total operating expenses | 6,260 | 6,314 | 7,584 | (1) | (17) | 12,574 | 13,620 | (8) | |||||||||
| Income/(loss) from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes | 2,494 | 2,621 | (207) | (5) | – | 5,115 | 881 | 481 | |||||||||
| Income tax expense/(benefit) | 442 | 570 | 357 | (22) | 24 | 1,012 | 677 | 49 | |||||||||
| Dividends on preferred securities for consolidated entities | 0 | 0 | 33 | – | – | 0 | 65 | – | |||||||||
| Minority interests, net of tax | 548 | 119 | 8 | 361 | – | 667 | 7 | – | |||||||||
| Income/(loss) from continuing operations before extraordinary items and cumulative effect of accounting changes | 1,504 | 1,932 | (605) | (22) | – | 3,436 | 132 | – | |||||||||
| Income/(loss) from discontinued operations, net of tax | (47) | (65) | 60 | (28) | – | (112) | 127 | – | |||||||||
| Extraordinary items, net of tax | 0 | 0 | 1 | – | – | 0 | 5 | – | |||||||||
| Cumulative effect of accounting changes, net of tax | 0 | (6) | (12) | – | – | (6) | (541) | (99) | |||||||||
| Net income/(loss) | 1,457 | 1,861 | (556) | (22) | – | 3,318 | (277) | – | |||||||||
| Return on equity | 16.6% | 21.3% | (6.5%) | – | – | 19.0% | (1.6%) | – | |||||||||
| Earnings per share in CHF | |||||||||||||||||
| Basic earnings per share | 1.26 | 1.56 | (0.48) | – | – | 2.82 | (0.24) | – | |||||||||
| Diluted earnings per share | 1.18 | 1.48 | (0.48) | – | – | 2.67 | (0.24) | – | |||||||||
| Key figures | |||||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| in CHF m, except where indicated | 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | ||||||
| Total assets | 1,131,684 | 1,138,196 | 1,004,308 | (1) | 13 | ||||||
| Shareholders' equity | 35,284 | 35,338 | 33,991 | 0 | 4 | ||||||
| Assets under management in CHF bn | 1,227.3 | 1,241.3 | 1,181.1 | (1) | 4 | ||||||
| Market price per registered share in CHF | 44.50 | 43.90 | 45.25 | 1 | (2) | ||||||
| Market capitalization | 49,238 | 49,124 | 51,149 | 0 | (4) | ||||||
| Book value per share in CHF | 31.89 | 31.58 | 30.07 | 1 | 6 | ||||||
| BIS tier 1 ratio | 11.6% | 11.5% | 11.7% | – | – | ||||||
| BIS total capital ratio | 16.2% | 16.4% | 17.4% | – | – | ||||||
| Credit Suisse Group financial highlights | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m, except where indicated | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Consolidated income statement | |||||||||||||||||
| Net revenues | 13,510 | 16,563 | 12,136 | (18) | 11 | 30,073 | 26,824 | 12 | |||||||||
| Income/(loss) from continuing operations before extraordinary items and cumulative effect of accounting changes | 1,504 | 1,932 | (605) | (22) | – | 3,436 | 132 | – | |||||||||
| Net income/(loss) | 1,457 | 1,861 | (556) | (22) | – | 3,318 | (277) | – | |||||||||
| Return on equity | 16.6% | 21.3% | (6.5%) | – | – | 19.0% | (1.6%) | – | |||||||||
| Earnings per share | |||||||||||||||||
| Basic earnings per share in CHF | 1.26 | 1.56 | (0.48) | – | – | 2.82 | (0.24) | – | |||||||||
| Diluted earnings per share in CHF | 1.18 | 1.48 | (0.48) | – | – | 2.67 | (0.24) | – | |||||||||
| Net new assets in CHF bn | 9.1 | 15.6 | 0.4 | – | – | 24.7 | (1.1) | – | |||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| in CHF m, except where indicated | 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | ||||||
| Assets under management in CHF bn | 1,227.3 | 1,241.3 | 1,181.1 | (1) | 4 | ||||||
| Consolidated balance sheet | |||||||||||
| Total assets | 1,131,684 | 1,138,196 | 1,004,308 | (1) | 13 | ||||||
| Shareholders' equity | 35,284 | 35,338 | 33,991 | 0 | 4 | ||||||
| Consolidated BIS capital data 1) | |||||||||||
| Risk-weighted assets | 202,589 | 201,161 | 190,761 | – | – | ||||||
| Tier 1 ratio | 11.6% | 11.5% | 11.7% | – | – | ||||||
| Total capital ratio | 16.2% | 16.4% | 17.4% | – | – | ||||||
| Number of employees | |||||||||||
| Switzerland – banking segments | 19,089 | 19,084 | 19,301 | 0 | (1) | ||||||
| Switzerland – insurance segments | 6,336 | 6,154 | 6,426 | 3 | (1) | ||||||
| Outside Switzerland – banking segments | 20,775 | 20,422 | 20,310 | 2 | 2 | ||||||
| Outside Switzerland – insurance segments | 13,372 | 14,328 | 14,440 | (7) | (7) | ||||||
| Number of employees (full-time equivalents) | 59,572 | 59,988 | 60,477 | (1) | (1) | ||||||
| Stock market data | |||||||||||
| Market price per registered share in CHF | 44.50 | 43.90 | 45.25 | 1 | (2) | ||||||
| Market price per American Depositary Share in USD | 35.81 | 34.80 | 36.33 | 3 | (1) | ||||||
| Market capitalization | 49,238 | 49,124 | 51,149 | 0 | (4) | ||||||
| Market capitalization in USD m | 39,623 | 38,941 | 41,066 | 2 | (4) | ||||||
| Book value per share in CHF | 31.89 | 31.58 | 30.07 | 1 | 6 | ||||||
| Shares outstanding | 1,106,464,994 | 1,118,998,681 | 1,130,362,948 | (1) | (2) | ||||||
| 1) All calculations through December 31, 2003, are on the basis of Swiss GAAP. For further details see page 5. | |||||||||||
| Overview of segment results | |||||||||||||||||
| Corporate & | Wealth & | Credit | |||||||||||||||
| Private | Retail | Life & | Institutional | Asset | Corporate | Suisse | |||||||||||
| 2Q2004, in CHF m | Banking | Banking | Pensions | Non-Life | Securities | Management | Center | Group | |||||||||
| Net revenues | 1,869 | 950 | 3,225 | 2,995 | 3,134 | 1,499 | (162) | 13,510 | |||||||||
| Policyholder benefits, claims and dividends | – | – | 2,591 | 2,032 | – | – | – | 4,623 | |||||||||
| Provision for credit losses | (8) | 60 | 2 | (1) | 80 | 0 | 0 | 133 | |||||||||
| Total benefits, claims and credit losses | (8) | 60 | 2,593 | 2,031 | 80 | 0 | 0 | 4,756 | |||||||||
| Insurance underwriting, acquisition and administration expenses | – | – | 411 | 708 | – | – | (2) | 1,117 | |||||||||
| Banking compensation and benefits | 564 | 300 | – | – | 1,916 | 276 | 31 | 3,087 | |||||||||
| Other expenses | 519 | 253 | 67 | 24 | 942 | 360 | (169) | 1,996 | |||||||||
| Restructuring charges | 0 | 0 | 3 | 57 | 0 | 0 | 0 | 60 | |||||||||
| Total operating expenses | 1,083 | 553 | 481 | 789 | 2,858 | 636 | (140) | 6,260 | |||||||||
| Income from continuing operations before taxes and minority interests | 794 | 337 | 151 | 175 | 196 | 863 | (22) | 2,494 | |||||||||
| Income tax expense | 124 | 80 | 71 | 34 | 14 | 100 | 19 | 442 | |||||||||
| Minority interests, net of tax | 5 | 1 | 6 | 19 | 53 | 462 | 2 | 548 | |||||||||
| Income from continuing operations | 665 | 256 | 74 | 122 | 129 | 301 | (43) | 1,504 | |||||||||
| Income/(loss) from discontinued operations, net of tax | 0 | 0 | (7) | (40) | 0 | 0 | 0 | (47) | |||||||||
| Net income | 665 | 256 | 67 | 82 | 129 | 301 | (43) | 1,457 | |||||||||
| BIS capital data | |||||||||||||
| Credit Suisse | Credit Suisse First Boston | Credit Suisse Group | |||||||||||
| in CHF m, except where indicated | 30.06.04 | 31.12.03 | 30.06.04 | 31.12.03 | 30.06.04 | 31.12.03 | |||||||
| Risk-weighted positions | 91,083 | 85,158 | 82,185 | 80,622 | 185,632 | 176,911 | |||||||
| Market risk equivalents | 5,279 | 4,675 | 10,716 | 8,185 | 16,957 | 13,850 | |||||||
| Risk-weighted assets | 96,362 | 89,833 | 92,901 | 88,807 | 202,589 | 190,761 | |||||||
| Tier 1 capital | 7,689 | 7,362 | 11,488 | 12,062 | 23,485 | 22,287 | |||||||
| of which non-cumulative perpetual preferred securities | 0 | 0 | 1,033 | 1,025 | 2,170 | 2,167 | |||||||
| Tier 1 ratio | 8.0% | 8.2% | 12.4% | 13.6% | 11.6% | 11.7% | |||||||
| Total capital | 10,895 | 10,630 | 20,331 | 20,968 | 32,738 | 33,207 | |||||||
| Total capital ratio | 11.3% | 11.8% | 21.9% | 23.6% | 16.2% | 17.4% | |||||||
| As of January 1, 2004, Credit Suisse Group bases its capital adequacy calculations on US GAAP, which is in accordance with the Swiss Federal Banking Commission (SFBC) newsletter 32 (dated December 18, 2003). The SFBC has advised Credit Suisse Group that it may continue to include as Tier 1 capital CHF 2.2 billion of equity from special purpose entities, which are deconsolidated under FIN 46R, and that Credit Suisse First Boston may include CHF 6.3 billion of such equity as Tier 1 capital. All calculations through December 31, 2003, are on the basis of Swiss GAAP. | |||||||||||||
| Assets under management/client assets | |||||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| in CHF bn | 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | ||||||
| Private Banking 1) | |||||||||||
| Assets under management | 537.2 | 540.6 | 511.3 | (0.6) | 5.1 | ||||||
| Client assets | 571.5 | 572.6 | 541.0 | (0.2) | 5.6 | ||||||
| Corporate & Retail Banking 1) | |||||||||||
| Assets under management | 53.3 | 54.4 | 53.6 | (2.0) | (0.6) | ||||||
| Client assets | 98.1 | 97.0 | 95.2 | 1.1 | 3.0 | ||||||
| Life & Pensions | |||||||||||
| Assets under management | 117.4 | 118.6 | 113.8 | (1.0) | 3.2 | ||||||
| Client assets | 117.4 | 118.6 | 113.8 | (1.0) | 3.2 | ||||||
| Non-Life | |||||||||||
| Assets under management | 25.3 | 25.8 | 25.4 | (1.9) | (0.4) | ||||||
| Client assets | 25.3 | 25.8 | 25.4 | (1.9) | (0.4) | ||||||
| Institutional Securities 2) | |||||||||||
| Assets under management | 16.3 | 17.6 | 12.9 | (7.4) | 26.4 | ||||||
| Client assets | 94.8 | 97.9 | 84.6 | (3.2) | 12.1 | ||||||
| Wealth & Asset Management 2) | |||||||||||
| Assets under management 3) | 477.8 | 484.3 | 464.1 | (1.3) | 3.0 | ||||||
| Client assets | 496.1 | 502.2 | 482.1 | (1.2) | 2.9 | ||||||
| Credit Suisse Group | |||||||||||
| Discretionary assets under management | 608.4 | 618.9 | 585.9 | (1.7) | 3.8 | ||||||
| Advisory assets under management | 618.9 | 622.4 | 595.2 | (0.6) | 4.0 | ||||||
| Total assets under management | 1,227.3 | 1,241.3 | 1,181.1 | (1.1) | 3.9 | ||||||
| Total client assets | 1,403.2 | 1,414.1 | 1,342.1 | (0.8) | 4.6 | ||||||
| Net new assets | |||||||||||
| 6 months | |||||||||||
| in CHF bn | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Private Banking 1) | 7.9 | 10.8 | 3.7 | 18.7 | 5.2 | ||||||
| Corporate & Retail Banking 1) | (0.3) | 0.9 | 0.0 | 0.6 | 0.2 | ||||||
| Life & Pensions | 0.1 | 2.1 | 0.4 | 2.2 | 2.6 | ||||||
| Institutional Securities 2) | (0.6) | 1.8 | 1.4 | 1.2 | 1.1 | ||||||
| Wealth & Asset Management 2) 3) | 2.0 | 0.0 | (5.1) | 2.0 | (10.2) | ||||||
| Credit Suisse Group | 9.1 | 15.6 | 0.4 | 24.7 | (1.1) | ||||||
| 1) Effective January 1, 2004, corporate client assets in the Corporate & Retail Banking and Private Banking segments have been excluded from Assets under management and Net new assets. There is a minimal advisory role for such clients and the asset flows are often driven more by liquidity requirements than by pure investment reasons. Corporate client assets remain included in the broader metric Client assets. Prior period balances have been adjusted. | |||||||||||
| 2) Certain adjustments have been made to conform to the current presentation. | |||||||||||
| 3) Excluding assets managed on behalf of other entities within Credit Suisse Group. | |||||||||||
| Key Position Risk Trends | |||||||||
| Change Analysis: Brief Summary | |||||||||
| Change in % from | |||||||||
| in CHF m | 30.06.04 | 31.03.04 | 30.06.03 | 30.06.04 vs 31.03.04 | |||||
| Interest Rate, Credit Spread ERC & | |||||||||
| Foreign Exchange ERC | 4,365 | (8%) | (9%) | Decrease at Winterthur due to lower foreign exchange and interest rate risks, partially offset by higher interest rate exposures at Credit Suisse First Boston and Credit Suisse Financial Services banking segments. | |||||
| Equity Investment ERC | 3,114 | (14%) | 9% | Lower equity trading risks at Credit Suisse First Boston and Credit Suisse Financial Services banking segments, partially offset by higher private equity positions at Winterthur. | |||||
| Swiss & Retail Lending ERC | 1,742 | (4%) | (11%) | Lower lending risks at Credit Suisse Financial Services banking segments due to a reduction of legacy impaired assets. | |||||
| International Lending ERC & | |||||||||
| Counterparty ERC | 2,672 | 10% | (8%) | Activity in the strong leveraged and bank finance markets. | |||||
| Emerging Markets ERC | 2,008 | 9% | 15% | Increases in emerging market risk at Credit Suisse First Boston due to increases in Brazil and Turkey, partially offset by lower emerging market positions at Winterthur. | |||||
| Real Estate ERC & | |||||||||
| Structured Asset ERC 1) | 3,447 | 5% | (9%) | Higher commercial and residential real estate exposures at Credit Suisse First Boston. | |||||
| Insurance Underwriting ERC | 669 | (1%) | (36%) | No material change. | |||||
| Simple sum across risk categories | 18,017 | (2%) | (6%) | ||||||
| Diversification benefit | (5,240) | (14%) | (20%) | ||||||
| Total Position Risk ERC | 12,777 | 3% | 2% | ||||||
| 1-year, 99% position risk ERC, excluding foreign exchange translation risk. For an assessment of the total risk profile, operational risk ERC and business risk ERC have to be considered. For a more detailed description of the Group’s ERC model, please refer to Credit Suisse Group's Annual Report 2003, which is available on the website: www.credit-suisse.com/annualreport2003. Prior period balances have been restated for methodology changes in order to maintain consistency over time. | |||||||||
| 1) This category comprises the real estate investments of Winterthur, Credit Suisse First Boston’s commercial real estate exposures, Credit Suisse First Boston’s residential real estate exposures, Credit Suisse First Boston’s asset-backed securities exposure as well as the real estate acquired at auction and real estate for own use in Switzerland. | |||||||||
| Market risk in the Credit Suisse Group trading portfolios (99%, 1-day VaR) 1) | |||||||||||||||||
| 2Q2004 | 1Q2004 | ||||||||||||||||
| in CHF m | Minimum | Maximum | Average | 30.06.04 | Minimum | Maximum | Average | 31.03.04 | |||||||||
| Credit Suisse Financial Services | |||||||||||||||||
| Interest rate & credit spread | 2.7 | 4.2 | 3.3 | 2.8 | 3.0 | 5.4 | 3.8 | 3.5 | |||||||||
| Foreign exchange rate | 1.9 | 3.9 | 2.7 | 3.1 | 1.7 | 6.9 | 2.9 | 4.6 | |||||||||
| Equity | 5.8 | 15.3 | 9.9 | 8.9 | 7.8 | 30.4 | 12.2 | 12.4 | |||||||||
| Commodity | 0.6 | 1.7 | 1.1 | 1.1 | 0.4 | 1.6 | 0.7 | 1.4 | |||||||||
| Diversification benefit | – | 2) | – | 2) | (5.4) | (4.6) | – | 2) | – | 2) | (5.4) | (7.5) | |||||
| Total | 7.2 | 17.2 | 11.6 | 11.3 | 9.6 | 32.8 | 14.2 | 14.4 | |||||||||
| Credit Suisse First Boston | |||||||||||||||||
| Interest rate & credit spread | 38.1 | 77.0 | 54.4 | 73.3 | 36.6 | 80.8 | 57.6 | 39.5 | |||||||||
| Foreign exchange rate | 12.0 | 31.1 | 19.6 | 15.3 | 12.1 | 30.1 | 20.2 | 19.7 | |||||||||
| Equity | 34.8 | 53.1 | 40.9 | 41.6 | 21.5 | 48.1 | 32.4 | 43.9 | |||||||||
| Commodity | 0.2 | 0.8 | 0.4 | 0.2 | 0.0 | 1.0 | 0.6 | 0.5 | |||||||||
| Diversification benefit | – | 2) | – | 2) | (47.6) | (63.8) | – | 2) | – | 2) | (44.5) | (39.9) | |||||
| Total | 49.1 | 104.5 | 67.7 | 66.6 | 46.5 | 90.0 | 66.3 | 63.7 | |||||||||
| Credit Suisse Group 3) | |||||||||||||||||
| Interest rate & credit spread | 41.0 | 73.2 | 56.5 | 73.2 | 39.8 | 73.9 | 59.0 | 39.8 | |||||||||
| Foreign exchange rate | 13.5 | 15.9 | 14.7 | 19.7 | 12.7 | 20.6 | 17.6 | 19.7 | |||||||||
| Equity | 39.8 | 44.7 | 43.0 | 47.7 | 31.1 | 47.7 | 40.8 | 47.7 | |||||||||
| Commodity | 0.6 | 1.0 | 0.8 | 1.3 | 0.6 | 1.3 | 0.8 | 1.3 | |||||||||
| Diversification benefit | – | 2) | – | 2) | (45.2) | (73.2) | – | 2) | – | 2) | (39.4) | (42.6) | |||||
| Total | 66.3 | 74.4 | 69.8 | 68.7 | 65.9 | 91.1 | 78.8 | 65.9 | |||||||||
| 1) Represents 10-day VaR scaled to a 1-day holding period. | |||||||||||||||||
| 2) As the minimum and maximum occur on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit. | |||||||||||||||||
| 3) The VaR estimates for Credit Suisse Group are performed on a monthly basis and the VaR statistics for Credit Suisse Group therefore refer to monthly numbers. The consolidated VaR estimates for Credit Suisse Group are net of diversification benefits between Credit Suisse First Boston and Credit Suisse Financial Services. | |||||||||||||||||
|
CSFB backtesting  CSFB trading revenue distribution, 2nd quarter of 2004  |
| Loans outstanding | |||||||||||||||||||
| Credit Suisse | Credit Suisse | Credit Suisse | |||||||||||||||||
| Financial Services | First Boston | Group | |||||||||||||||||
| in CHF m | 30.06.04 | 31.03.04 | 31.12.03 | 30.06.04 | 31.03.04 | 31.12.03 | 30.06.04 | 31.03.04 | 31.12.03 | ||||||||||
| Consumer loans: | |||||||||||||||||||
| Mortgages | 71,721 | 70,505 | 68,083 | 0 | 0 | 0 | 71,721 | 70,505 | 68,083 | ||||||||||
| Loans collateralized by securities | 14,991 | 13,563 | 14,379 | 0 | 0 | 0 | 14,991 | 13,563 | 14,379 | ||||||||||
| Other | 2,377 | 3,261 | 2,339 | 452 | 992 | 1,172 | 2,829 | 4,253 | 3,511 | ||||||||||
| Consumer loans | 89,089 | 87,329 | 84,801 | 452 | 992 | 1,172 | 89,541 | 88,321 | 85,973 | ||||||||||
| Corporate loans: | |||||||||||||||||||
| Real estate | 30,033 | 30,480 | 30,174 | 452 | 318 | 188 | 30,485 | 30,798 | 30,362 | ||||||||||
| Commercial & industrial loans | 35,212 | 35,579 | 34,097 | 14,199 | 14,105 | 13,859 | 49,411 | 49,684 | 47,956 | ||||||||||
| Loans to financial institutions | 9,637 | 9,272 | 8,374 | 3,467 | 4,562 | 4,473 | 13,104 | 13,834 | 12,847 | ||||||||||
| Governments and public institutions | 4,004 | 3,444 | 3,429 | 511 | 1,172 | 1,152 | 4,515 | 4,616 | 4,581 | ||||||||||
| Corporate loans | 78,886 | 78,775 | 76,074 | 18,629 | 20,157 | 19,672 | 97,515 | 98,932 | 95,746 | ||||||||||
| Loans, gross | 167,975 | 166,104 | 160,875 | 19,081 | 21,149 | 20,844 | 187,056 | 187,253 | 181,719 | ||||||||||
| (Unearned income)/deferred expenses, net | 130 | 129 | 131 | (41) | (38) | (25) | 89 | 91 | 106 | ||||||||||
| Allowance for loan losses | (2,733) | (2,990) | (3,263) | (1,057) | (1,199) | (1,383) | (3,790) | (4,189) | (4,646) | ||||||||||
| Total loans, net | 165,372 | 163,243 | 157,743 | 17,983 | 19,912 | 19,436 | 183,355 | 183,155 | 177,179 | ||||||||||
| This disclosure presents the lending exposure of the Group from a risk management perspective. This presentation differs from other disclosures in this document. | |||||||||||||||||||
| Total loan portfolio exposure and allowance for loan losses | |||||||||||||||||||
| Credit Suisse | Credit Suisse | Credit Suisse | |||||||||||||||||
| Financial Services | First Boston | Group | |||||||||||||||||
| in CHF m | 30.06.04 | 31.03.04 | 31.12.03 | 30.06.04 | 31.03.04 | 31.12.03 | 30.06.04 | 31.03.04 | 31.12.03 | ||||||||||
| Non-performing loans | 1,602 | 1,667 | 1,981 | 938 | 970 | 996 | 2,540 | 2,637 | 2,977 | ||||||||||
| Non-interest earning loans | 1,382 | 1,506 | 1,523 | 13 | 70 | 246 | 1,394 | 1,575 | 1,769 | ||||||||||
| Total non-performing loans | 2,984 | 3,173 | 3,504 | 951 | 1,040 | 1,242 | 3,934 | 4,212 | 4,746 | ||||||||||
| Restructured loans | 57 | 14 | 27 | 6 | 239 | 256 | 64 | 253 | 283 | ||||||||||
| Potential problem loans | 1,425 | 1,611 | 1,817 | 322 | 354 | 361 | 1,747 | 1,965 | 2,178 | ||||||||||
| Total other impaired loans | 1,482 | 1,625 | 1,844 | 328 | 593 | 617 | 1,811 | 2,218 | 2,461 | ||||||||||
| Total impaired loans | 4,466 | 4,798 | 5,348 | 1,279 | 1,633 | 1,859 | 5,745 | 6,430 | 7,207 | ||||||||||
| Loans, gross | 167,975 | 166,104 | 160,875 | 19,081 | 21,149 | 20,844 | 187,056 | 187,253 | 181,719 | ||||||||||
| (Unearned income)/deferred expenses, net | 130 | 129 | 131 | (41) | (38) | (25) | 89 | 91 | 106 | ||||||||||
| Allowance for loan losses | (2,733) | (2,990) | (3,263) | (1,057) | (1,199) | (1,383) | (3,790) | (4,189) | (4,646) | ||||||||||
| Total loans, net | 165,372 | 163,243 | 157,743 | 17,983 | 19,912 | 19,436 | 183,355 | 183,155 | 177,179 | ||||||||||
| Valuation allowances as % of | |||||||||||||||||||
| Total non-performing loans | 91.6% | 94.2% | 93.1% | 111.1% | 115.3% | 111.4% | 96.3% | 99.5% | 97.9% | ||||||||||
| Total impaired loans | 61.2% | 62.3% | 61.0% | 82.6% | 73.4% | 74.4% | 66.0% | 65.1% | 64.5% | ||||||||||
| Allowance for loan losses | |||||||||||||||||||
| Credit Suisse | Credit Suisse | Credit Suisse | |||||||||||||||||
| Financial Services | First Boston | Group | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2Q2004 | 1Q2004 | 2Q2003 | 2Q2004 | 1Q2004 | 2Q2003 | ||||||||||
| Balance beginning of period | 2,990 | 3,263 | 3,892 | 1,199 | 1,383 | 2,983 | 4,189 | 4,646 | 6,875 | ||||||||||
| New provisions | 146 | 127 | 134 | 174 | 38 | 127 | 319 | 165 | 261 | ||||||||||
| Releases of provisions | (93) | (64) | (82) | (89) | (67) | (64) | (181) | (131) | (147) | ||||||||||
| Net additions charged to income statement | 53 | 63 | 52 | 85 | (29) | 63 | 138 | 34 | 114 | ||||||||||
| Gross write-offs | (309) | (380) | (428) | (247) | (210) | (193) | (556) | (590) | (621) | ||||||||||
| Recoveries | 7 | 6 | 6 | 12 | 5 | 6 | 20 | 11 | 12 | ||||||||||
| Net write-offs | (302) | (374) | (422) | (235) | (205) | (187) | (536) | (579) | (609) | ||||||||||
| Allowances acquired | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 1 | ||||||||||
| Provisions for interest | 2 | 10 | 12 | 11 | 13 | 13 | 11 | 24 | 25 | ||||||||||
| Foreign currency translation impact and other adjustments, net | (10) | 28 | 26 | (3) | 37 | (2) | (12) | 64 | 25 | ||||||||||
| Balance end of period | 2,733 | 2,990 | 3,561 | 1,057 | 1,199 | 2,870 | 3,790 | 4,189 | 6,431 | ||||||||||
| Provision for credit losses disclosed in the income statement also includes provisions for lending related exposure. | |||||||||||||||||||
| Credit Suisse Financial Services | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m, except where indicated | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net revenues | 9,039 | 11,880 | 8,370 | (24) | 8 | 20,919 | 19,342 | 8 | |||||||||
| Total benefits, claims and credit losses | 4,676 | 7,647 | 4,692 | (39) | 0 | 12,323 | 12,117 | 2 | |||||||||
| Total operating expenses | 2,906 | 2,751 | 4,189 | 6 | (31) | 5,657 | 6,902 | (18) | |||||||||
| Net income/(loss) | 1,070 | 1,112 | (646) | (4) | – | 2,182 | (520) | – | |||||||||
| Cost/income ratio banking segments | 58.0% | 57.5% | 65.4% | – | – | 57.8% | 65.3% | – | |||||||||
| Return on average allocated capital | 27.0% | 28.4% | (13.8%) | – | – | 27.6% | (5.6%) | – | |||||||||
| Average allocated capital | 16,316 | 15,804 | 18,477 | 3 | (12) | 16,144 | 18,444 | (12) | |||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | |||||||
| Assets under management in CHF bn | 733.2 | 739.4 | 704.1 | (1) | 4 | ||||||
| Number of employees (full-time equivalents) | 39,857 | 40,531 | 41,195 | (2) | (3) | ||||||
| Private Banking income statement | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net interest income | 648 | 411 | 399 | 58 | 62 | 1,059 | 744 | 42 | |||||||||
| Commissions and fees | 1,178 | 1,292 | 1,069 | (9) | 10 | 2,470 | 2,065 | 20 | |||||||||
| Trading revenues including realized gains/(losses) from investment securities, net | 9 | 181 | (1) | (95) | – | 190 | 126 | 51 | |||||||||
| Other revenues | 34 | 56 | 11 | (39) | 209 | 90 | 30 | 200 | |||||||||
| Total noninterest revenues | 1,221 | 1,529 | 1,079 | (20) | 13 | 2,750 | 2,221 | 24 | |||||||||
| Net revenues | 1,869 | 1,940 | 1,478 | (4) | 26 | 3,809 | 2,965 | 28 | |||||||||
| Provision for credit losses | (8) | 6 | 5 | – | – | (2) | 16 | – | |||||||||
| Compensation and benefits | 564 | 582 | 509 | (3) | 11 | 1,146 | 1,004 | 14 | |||||||||
| Other expenses | 519 | 493 | 438 | 5 | 18 | 1,012 | 897 | 13 | |||||||||
| Restructuring charges | 0 | (2) | 1 | – | – | (2) | 1 | – | |||||||||
| Total operating expenses | 1,083 | 1,073 | 948 | 1 | 14 | 2,156 | 1,902 | 13 | |||||||||
| Income from continuing operations before taxes, minority interests and extraordinary items | 794 | 861 | 525 | (8) | 51 | 1,655 | 1,047 | 58 | |||||||||
| Income tax expense | 124 | 175 | 121 | (29) | 2 | 299 | 247 | 21 | |||||||||
| Minority interests, net of tax | 5 | 5 | 4 | 0 | 25 | 10 | 7 | 43 | |||||||||
| Income from continuing operations before extraordinary items | 665 | 681 | 400 | (2) | 66 | 1,346 | 793 | 70 | |||||||||
| Income/(loss) from discontinued operations, net of tax | 0 | 0 | 0 | – | – | 0 | (1) | – | |||||||||
| Extraordinary items, net of tax | 0 | 0 | 1 | – | – | 0 | 5 | – | |||||||||
| Net income | 665 | 681 | 401 | (2) | 66 | 1,346 | 797 | 69 | |||||||||
| Private Banking key information | |||||||||||
| 6 months | |||||||||||
| 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | |||||||
| Cost/income ratio | 57.9% | 55.3% | 64.1% | 56.6% | 64.1% | ||||||
| Gross margin | 139.1 bp | 146.3 bp | 124.6 bp | 142.7 bp | 126.9 bp | ||||||
| of which asset-driven 1) | 80.9 bp | 81.7 bp | 77.4 bp | 81.3 bp | 78.6 bp | ||||||
| of which transaction-driven 1) | 47.7 bp | 56.8 bp | 46.8 bp | 52.2 bp | 43.9 bp | ||||||
| of which other 1) | 10.5 bp | 7.8 bp | 0.4 bp | 9.2 bp | 4.4 bp | ||||||
| Net margin | 49.9 bp | 51.8 bp | 34.1 bp | 50.8 bp | 34.4 bp | ||||||
| Net new assets in CHF bn | 7.9 | 10.8 | 3.7 | 18.7 | 5.2 | ||||||
| Average allocated capital in CHF m | 3,414 | 3,228 | 2,955 | 3,317 | 2,850 | ||||||
| 1) Prior periods have been reclassified to conform to the current presentation. | |||||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | |||||||
| Assets under management in CHF bn | 537.2 | 540.6 | 511.3 | (1) | 5 | ||||||
| Total assets in CHF bn | 194.2 | 197.8 | 174.9 | (2) | 11 | ||||||
| Number of employees (full-time equivalents) | 11,989 | 11,784 | 11,850 | 2 | 1 | ||||||
| Corporate & Retail Banking income statement | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net interest income | 523 | 536 | 585 | (2) | (11) | 1,059 | 1,135 | (7) | |||||||||
| Commissions and fees | 208 | 208 | 170 | 0 | 22 | 416 | 343 | 21 | |||||||||
| Trading revenues including realized gains/(losses) from investment securities, net | 197 | 23 | (1) | – | – | 220 | 26 | – | |||||||||
| Other revenues | 22 | 20 | 35 | 10 | (37) | 42 | 59 | (29) | |||||||||
| Total noninterest revenues | 427 | 251 | 204 | 70 | 109 | 678 | 428 | 58 | |||||||||
| Net revenues | 950 | 787 | 789 | 21 | 20 | 1,737 | 1,563 | 11 | |||||||||
| Provision for credit losses | 60 | 48 | 39 | 25 | 54 | 108 | 89 | 21 | |||||||||
| Compensation and benefits | 300 | 275 | 281 | 9 | 7 | 575 | 562 | 2 | |||||||||
| Other expenses | 253 | 219 | 253 | 16 | 0 | 472 | 492 | (4) | |||||||||
| Total operating expenses | 553 | 494 | 534 | 12 | 4 | 1,047 | 1,054 | (1) | |||||||||
| Income from continuing operations before taxes and minority interests | 337 | 245 | 216 | 38 | 56 | 582 | 420 | 39 | |||||||||
| Income tax expense | 80 | 56 | 52 | 43 | 54 | 136 | 101 | 35 | |||||||||
| Minority interests, net of tax | 1 | 0 | 1 | – | 0 | 1 | 1 | 0 | |||||||||
| Net income | 256 | 189 | 163 | 35 | 57 | 445 | 318 | 40 | |||||||||
| Corporate & Retail Banking key information | |||||||||||
| 6 months | |||||||||||
| 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | |||||||
| Cost/income ratio | 58.2% | 62.8% | 67.7% | 60.3% | 67.4% | ||||||
| Net new assets in CHF bn | (0.3) | 0.9 | 0.0 | 0.6 | 0.2 | ||||||
| Return on average allocated capital | 20.4% | 15.1% | 12.9% | 17.7% | 12.7% | ||||||
| Average allocated capital in CHF m | 5,050 | 5,001 | 5,084 | 5,035 | 5,043 | ||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | |||||||
| Assets under management in CHF bn | 53.3 | 54.4 | 53.6 | (2) | (1) | ||||||
| Total assets in CHF bn | 101.9 | 101.5 | 98.5 | 0 | 3 | ||||||
| Mortgages in CHF bn | 61.5 | 60.8 | 59.8 | 1 | 3 | ||||||
| Other loans in CHF bn | 25.8 | 25.9 | 25.1 | 0 | 3 | ||||||
| Number of branches | 214 | 214 | 214 | – | – | ||||||
| Number of employees (full-time equivalents) | 8,160 | 8,265 | 8,479 | (1) | (4) | ||||||
| Life & Pensions income statement | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Gross premiums written | 2,042 | 4,641 | 2,103 | (56) | (3) | 6,683 | 7,085 | (6) | |||||||||
| Net premiums earned | 2,030 | 4,612 | 2,091 | (56) | (3) | 6,642 | 7,041 | (6) | |||||||||
| Net investment income | 1,092 | 1,311 | 1,136 | (17) | (4) | 2,403 | 2,137 | 12 | |||||||||
| Other revenues including fees, net revenues from deposit business general and separate account 1) | 103 | 105 | 115 | (2) | (10) | 208 | 203 | 2 | |||||||||
| Net revenues | 3,225 | 6,028 | 3,342 | (46) | (4) | 9,253 | 9,381 | (1) | |||||||||
| Policyholder benefits incurred | 2,334 | 4,959 | 2,479 | (53) | (6) | 7,293 | 7,922 | (8) | |||||||||
| Dividends to policyholders incurred | 257 | 421 | 229 | (39) | 12 | 678 | 252 | 169 | |||||||||
| Provision for credit losses | 2 | (1) | 4 | – | (50) | 1 | 0 | – | |||||||||
| Total benefits, dividends and credit losses | 2,593 | 5,379 | 2,712 | (52) | (4) | 7,972 | 8,174 | (2) | |||||||||
| Insurance underwriting and acquisition expenses | 153 | 164 | 119 | (7) | 29 | 317 | 278 | 14 | |||||||||
| Administration expenses | 258 | 237 | 266 | 9 | (3) | 495 | 568 | (13) | |||||||||
| Other expenses 1) | 67 | 49 | 17 | 37 | 294 | 116 | 59 | 97 | |||||||||
| Goodwill impairment | 0 | 0 | 1,510 | – | – | 0 | 1,510 | – | |||||||||
| Restructuring charges | 3 | 2 | 10 | 50 | (70) | 5 | 23 | (78) | |||||||||
| Total operating expenses | 481 | 452 | 1,922 | 6 | (75) | 933 | 2,438 | (62) | |||||||||
| Income/(loss) from continuing operations before taxes, minority interests and cumulative effect of accounting changes | 151 | 197 | (1,292) | (23) | – | 348 | (1,231) | – | |||||||||
| Income tax expense 1) | 71 | 51 | 19 | 39 | 274 | 122 | 107 | 14 | |||||||||
| Minority interests, net of tax | 6 | 7 | 1 | (14) | 500 | 13 | (3) | – | |||||||||
| Income/(loss) from continuing operations before cumulative effect of accounting changes | 74 | 139 | (1,312) | (47) | – | 213 | (1,335) | – | |||||||||
| Income/(loss) from discontinued operations, net of tax 1) | (7) | (1) | 11 | – | – | (8) | 46 | – | |||||||||
| Cumulative effect of accounting changes, net of tax | 0 | 1 | 0 | – | – | 1 | (529) | – | |||||||||
| Net income/(loss) | 67 | 139 | (1,301) | (52) | – | 206 | (1,818) | – | |||||||||
| 1) Prior periods have been adjusted for discontinued operations. | |||||||||||||||||
| Life & Pensions key information | |||||||||||
| 6 months | |||||||||||
| in CHF m, except where indicated | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Total business volume 1) | 3,460 | 6,067 | 3,259 | 9,527 | 9,452 | ||||||
| Expense ratio 2) | 11.9% | 6.6% | 11.8% | 8.5% | 9.0% | ||||||
| Return on average allocated capital | 5.2% | 10.9% | (72.8%) | 7.9% | (52.6%) | ||||||
| Average allocated capital in CHF m | 5,565 | 5,365 | 7,147 | 5,523 | 6,918 | ||||||
| 1) Includes gross premiums written and policyholder deposits. | |||||||||||
| 2) Insurance underwriting, acquisition and administration expenses as a percentage of total business volume. | |||||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | |||||||
| Assets under management (discretionary) in CHF bn 1) | 117.4 | 118.6 | 113.8 | (1) | 3 | ||||||
| Technical provisions in CHF bn | 108.8 | 110.0 | 104.7 | (1) | 4 | ||||||
| Number of employees (full-time equivalents) | 6,478 | 7,038 | 7,193 | (8) | (10) | ||||||
| 1) Based on savings-related provisions for policyholders plus off-balance sheet assets. | |||||||||||
| Life & Pensions investment income | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net current investment income | 1,046 | 1,002 | 995 | 4 | 5 | 2,048 | 1,947 | 5 | |||||||||
| of which backing traditional life policies | 984 | 934 | 935 | 5 | 5 | 1,918 | 1,850 | 4 | |||||||||
| of which backing unit-linked liabilities general account | 62 | 68 | 60 | (9) | 3 | 130 | 97 | 34 | |||||||||
| Realized gains/(losses), net | 287 | 579 | 838 | (50) | (66) | 866 | 807 | 7 | |||||||||
| of which backing traditional life policies | 148 | 447 | 252 | (67) | (41) | 595 | 372 | 60 | |||||||||
| of which backing unit-linked liabilities general account | 139 | 132 | 586 | 5 | (76) | 271 | 435 | (38) | |||||||||
| Net investment income before credited investment income to deposit business general account | 1,333 | 1,581 | 1,833 | (16) | (27) | 2,914 | 2,754 | 6 | |||||||||
| Credited investment income to deposit business general account | (241) | (270) | (697) | (11) | (65) | (511) | (617) | (17) | |||||||||
| Net investment income | 1,092 | 1,311 | 1,136 | (17) | (4) | 2,403 | 2,137 | 12 | |||||||||
| Investment income separate account | (56) | 9 | 232 | – | – | (47) | 161 | – | |||||||||
| Life & Pensions investment return | |||||||||||
| 6 months | |||||||||||
| in %, except where indicated | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Net current investment return backing traditional life policies | 4.0% | 3.8% | 3.9% | 3.9% | 3.9% | ||||||
| Realized gains/(losses) backing traditional life policies | 0.6% | 1.8% | 1.1% | 1.2% | 0.8% | ||||||
| Net investment return backing traditional life policies | 4.6% | 5.6% | 5.0% | 5.1% | 4.7% | ||||||
| Average assets backing traditional life policies in CHF bn | 98.0 | 98.7 | 95.2 | 97.8 | 93.9 | ||||||
| Non-Life income statement | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Gross premiums written | 2,099 | 5,471 | 2,095 | (62) | 0 | 7,570 | 7,062 | 7 | |||||||||
| Reinsurance ceded | (17) | (251) | (56) | (93) | (70) | (268) | (340) | (21) | |||||||||
| Change in provisions for unearned premiums | 597 | (2,415) | 489 | – | 22 | (1,818) | (1,687) | 8 | |||||||||
| Net premiums earned | 2,679 | 2,805 | 2,528 | (4) | 6 | 5,484 | 5,035 | 9 | |||||||||
| Net investment income | 281 | 318 | 228 | (12) | 23 | 599 | 420 | 43 | |||||||||
| Other revenues including fees | 35 | 2 | 5 | – | – | 37 | (22) | – | |||||||||
| Net revenues | 2,995 | 3,125 | 2,761 | (4) | 8 | 6,120 | 5,433 | 13 | |||||||||
| Claims and annuities incurred | 1,904 | 2,155 | 1,863 | (12) | 2 | 4,059 | 3,717 | 9 | |||||||||
| Dividends to policyholders incurred | 128 | 59 | 74 | 117 | 73 | 187 | 122 | 53 | |||||||||
| Provision for credit losses | (1) | 0 | (1) | – | 0 | (1) | (1) | 0 | |||||||||
| Total claims, dividends and credit losses | 2,031 | 2,214 | 1,936 | (8) | 5 | 4,245 | 3,838 | 11 | |||||||||
| Insurance underwriting and acquisition expenses | 388 | 366 | 370 | 6 | 5 | 754 | 741 | 2 | |||||||||
| Administration expenses | 320 | 295 | 294 | 8 | 9 | 615 | 609 | 1 | |||||||||
| Other expenses | 24 | 67 | 96 | (64) | (75) | 91 | 122 | (25) | |||||||||
| Restructuring charges | 57 | 4 | 25 | – | 128 | 61 | 36 | 69 | |||||||||
| Total operating expenses | 789 | 732 | 785 | 8 | 1 | 1,521 | 1,508 | 1 | |||||||||
| Income/(loss) from continuing operations before taxes and minority interests | 175 | 179 | 40 | (2) | 338 | 354 | 87 | 307 | |||||||||
| Income tax expense/(benefit) | 34 | 14 | (3) | 143 | – | 48 | (36) | – | |||||||||
| Minority interests, net of tax | 19 | (1) | 3 | – | – | 18 | 2 | – | |||||||||
| Income from continuing operations | 122 | 166 | 40 | (27) | 205 | 288 | 121 | 138 | |||||||||
| Income/(loss) from discontinued operations, net of tax | (40) | (63) | 51 | (37) | – | (103) | 62 | – | |||||||||
| Net income | 82 | 103 | 91 | (20) | (10) | 185 | 183 | 1 | |||||||||
| Non-Life key information | |||||||||||
| 6 months | |||||||||||
| in %, except where indicated | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Combined ratio | 97.5% | 100.4% | 100.0% | 99.0% | 100.6% | ||||||
| Expense ratio 1) | 26.4% | 23.6% | 26.3% | 25.0% | 26.8% | ||||||
| Claims ratio 2) | 71.1% | 76.8% | 73.7% | 74.0% | 73.8% | ||||||
| Return on average allocated capital | 17.7% | 18.5% | 9.8% | 17.9% | 9.3% | ||||||
| Average allocated capital in CHF m | 2,287 | 2,211 | 3,822 | 2,270 | 3,986 | ||||||
| 1) Insurance underwriting, acquisition and administration expenses as a percentage of net premiums earned. | |||||||||||
| 2) Claims and annuities incurred as a percentage of net premiums earned. | |||||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | |||||||
| Assets under management (discretionary) in CHF bn | 25.3 | 25.8 | 25.4 | (2) | 0 | ||||||
| Technical provisions in CHF bn | 26.2 | 27.0 | 24.1 | (3) | 9 | ||||||
| Number of employees (full-time equivalents) | 13,230 | 13,444 | 13,673 | (2) | (3) | ||||||
| Non-Life investment income | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net current investment income | 224 | 215 | 206 | 4 | 9 | 439 | 406 | 8 | |||||||||
| Realized gains/(losses), net | 57 | 103 | 22 | (45) | 159 | 160 | 14 | – | |||||||||
| Net investment income | 281 | 318 | 228 | (12) | 23 | 599 | 420 | 43 | |||||||||
| Non-Life investment return | |||||||||||
| 6 months | |||||||||||
| in %, except where indicated | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Net current investment return | 3.6% | 3.5% | 3.8% | 3.5% | 3.8% | ||||||
| Realized gains/(losses), net | 0.9% | 1.6% | 0.4% | 1.3% | 0.1% | ||||||
| Net investment return | 4.5% | 5.1% | 4.2% | 4.8% | 3.9% | ||||||
| Average assets in CHF bn | 24.9 | 24.9 | 21.7 | 24.8 | 21.4 | ||||||
| Investment portfolio (Life & Pensions and Non-Life) | |||||||||||
| Gross | Gross | ||||||||||
| Amortized | unrealized | unrealized | |||||||||
| in CHF m, as of June 30, 2004 | Book value | cost | gains | losses | Fair value | ||||||
| Held-to-maturity debt securities | 10,142 | 10,142 | 0 | 304 | 9,838 | ||||||
| Available-for-sale debt securities | 70,719 | 70,054 | 2,020 | 1,355 | 70,719 | ||||||
| Available-for-sale equity securities | 5,217 | 4,834 | 550 | 167 | 5,217 | ||||||
| Trading debt securities | 1,107 | 1,107 | |||||||||
| Trading equity securities | 10,027 | 10,027 | |||||||||
| Mortgage loans | 11,091 | 11,091 | |||||||||
| Loans | 4,842 | 4,842 | |||||||||
| Real estate | 8,231 | 8,555 | |||||||||
| Other investments | 3,466 | 3,466 | |||||||||
| Investments, general account | 124,842 | 124,862 | |||||||||
| Investments, separate account | 4,052 | 4,052 | |||||||||
| Total investments | 128,894 | 128,914 | |||||||||
| of which Life & Pensions | 107,202 | 107,000 | |||||||||
| of which Non-Life | 21,692 | 21,914 | |||||||||
| in CHF m, as of December 31, 2003 | |||||||||||
| Held-to-maturity debt securities | 10,186 | 10,186 | 0 | 165 | 10,021 | ||||||
| Available-for-sale debt securities | 71,324 | 69,546 | 2,671 | 893 | 71,324 | ||||||
| Available-for-sale equity securities | 5,122 | 4,622 | 553 | 53 | 5,122 | ||||||
| Trading debt securities | 1,071 | 1,071 | |||||||||
| Trading equity securities | 8,591 | 8,591 | |||||||||
| Mortgage loans | 11,054 | 11,054 | |||||||||
| Loans | 4,523 | 4,523 | |||||||||
| Real estate | 8,388 | 8,682 | |||||||||
| Other investments | 3,733 | 3,733 | |||||||||
| Investments, general account | 123,992 | 124,121 | |||||||||
| Investments, separate account | 3,991 | 3,991 | |||||||||
| Total investments | 127,983 | 128,112 | |||||||||
| of which Life & Pensions | 105,018 | 104,923 | |||||||||
| of which Non-Life | 22,965 | 23,189 | |||||||||
| Trading securities include CHF 10,954 m (December 31, 2003: CHF 9,337 m) held to back unit-linked liabilities in the general account. | |||||||||||
| Credit Suisse First Boston | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m, except where indicated | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net revenues | 4,633 | 4,863 | 3,960 | (5) | 17 | 9,496 | 8,189 | 16 | |||||||||
| Net revenues (excluding minority interest revenues) 1) | 4,118 | 4,755 | 3,960 | (13) | 4 | 8,873 | 8,189 | 8 | |||||||||
| Total operating expenses | 3,494 | 3,722 | 3,460 | (6) | 1 | 7,216 | 6,868 | 5 | |||||||||
| Net income | 430 | 759 | 202 | (43) | 113 | 1,189 | 800 | 49 | |||||||||
| Cost/income ratio | 75.4% | 76.5% | 87.4% | – | – | 76.0% | 83.9% | – | |||||||||
| Cost/income ratio (excluding minority interest revenues) 1) | 84.8% | 78.3% | 87.4% | – | – | 81.3% | 83.9% | – | |||||||||
| Compensation/revenue ratio | 47.3% | 52.0% | 56.0% | – | – | 49.7% | 52.8% | – | |||||||||
| Compensation/revenue ratio (excluding minority interest revenues) 1) | 53.2% | 53.2% | 56.0% | – | – | 53.2% | 52.8% | – | |||||||||
| Pre-tax margin | 22.9% | 23.9% | 11.4% | – | – | 23.4% | 13.6% | – | |||||||||
| Pre-tax margin (excluding minority interest revenues) 1) | 13.2% | 22.2% | 11.4% | – | – | 18.0% | 13.6% | – | |||||||||
| Return on average allocated capital | 14.5% | 28.1% | 6.6% | – | – | 21.0% | 12.8% | – | |||||||||
| Average allocated capital | 11,824 | 10,806 | 12,212 | 9 | (3) | 11,298 | 12,524 | (10) | |||||||||
| 1) Excluding CHF 515 million, CHF 108 million and CHF 623 million in 2Q2004, 1Q2004 and 6 months 2004, respectively, in minority interest revenues relating to the FIN 46R consolidation. | |||||||||||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | |||||||
| Assets under management in CHF bn | 494.1 | 501.9 | 477.0 | (2) | 4 | ||||||
| Number of employees (full-time equivalents) | 18,718 | 18,453 | 18,341 | 1 | 2 | ||||||
| Institutional Securities income statement | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net interest income | 1,065 | 1,042 | 937 | 2 | 14 | 2,107 | 1,766 | 19 | |||||||||
| Investment banking | 902 | 840 | 873 | 7 | 3 | 1,742 | 1,686 | 3 | |||||||||
| Commissions and fees | 617 | 763 | 624 | (19) | (1) | 1,380 | 1,236 | 12 | |||||||||
| Trading revenues including realized gains/(losses) from investment securities, net | 199 | 1,248 | 759 | (84) | (74) | 1,447 | 2,080 | (30) | |||||||||
| Other revenues | 351 | 104 | 119 | 238 | 195 | 455 | 98 | 364 | |||||||||
| Total noninterest revenues | 2,069 | 2,955 | 2,375 | (30) | (13) | 5,024 | 5,100 | (1) | |||||||||
| Net revenues | 3,134 | 3,997 | 3,312 | (22) | (5) | 7,131 | 6,866 | 4 | |||||||||
| Provision for credit losses | 80 | (21) | 50 | – | 60 | 59 | 204 | (71) | |||||||||
| Compensation and benefits | 1,916 | 2,251 | 1,966 | (15) | (3) | 4,167 | 3,805 | 10 | |||||||||
| Other expenses | 942 | 847 | 901 | 11 | 5 | 1,789 | 1,864 | (4) | |||||||||
| Total operating expenses | 2,858 | 3,098 | 2,867 | (8) | 0 | 5,956 | 5,669 | 5 | |||||||||
| Income from continuing operations before taxes, minority interests and cumulative effect of accounting changes | 196 | 920 | 395 | (79) | (50) | 1,116 | 993 | 12 | |||||||||
| Income tax expense | 14 | 257 | 228 | (95) | (94) | 271 | 315 | (14) | |||||||||
| Minority interests, net of tax | 53 | 40 | 0 | 33 | – | 93 | 0 | – | |||||||||
| Income from continuing operations before cumulative effect of accounting changes | 129 | 623 | 167 | (79) | (23) | 752 | 678 | 11 | |||||||||
| Cumulative effect of accounting changes, net of tax | 0 | 0 | (12) | – | – | 0 | (12) | – | |||||||||
| Net income | 129 | 623 | 155 | (79) | (17) | 752 | 666 | 13 | |||||||||
| Institutional Securities revenue disclosure | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Debt underwriting | 472 | 397 | 484 | 19 | (2) | 869 | 825 | 5 | |||||||||
| Equity underwriting | 189 | 243 | 173 | (22) | 9 | 432 | 286 | 51 | |||||||||
| Underwriting | 661 | 640 | 657 | 3 | 1 | 1,301 | 1,111 | 17 | |||||||||
| Advisory and other fees | 241 | 200 | 217 | 21 | 11 | 441 | 576 | (23) | |||||||||
| Total investment banking | 902 | 840 | 874 | 7 | 3 | 1,742 | 1,687 | 3 | |||||||||
| Fixed income | 1,012 | 1,869 | 1,622 | (46) | (38) | 2,881 | 3,558 | (19) | |||||||||
| Equity | 843 | 1,105 | 978 | (24) | (14) | 1,948 | 1,703 | 14 | |||||||||
| Total trading | 1,855 | 2,974 | 2,600 | (38) | (29) | 4,829 | 5,261 | (8) | |||||||||
| Other (including loan portfolio) | 377 | 183 | (162) | 106 | – | 560 | (82) | – | |||||||||
| Net revenues | 3,134 | 3,997 | 3,312 | (22) | (5) | 7,131 | 6,866 | 4 | |||||||||
| Commissions, fees and other | 686 | 751 | 605 | (9) | 13 | 1,437 | 1,187 | 21 | |||||||||
| Trading revenues (principal transactions) | 332 | 1,233 | 1,115 | (73) | (70) | 1,565 | 2,422 | (35) | |||||||||
| Net interest income | 837 | 990 | 880 | (15) | (5) | 1,827 | 1,652 | 11 | |||||||||
| Total trading | 1,855 | 2,974 | 2,600 | (38) | (29) | 4,829 | 5,261 | (8) | |||||||||
| Institutional Securities key information | |||||||||||
| 6 months | |||||||||||
| 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | |||||||
| Cost/income ratio | 91.2% | 77.5% | 86.6% | 83.5% | 82.6% | ||||||
| Cost/income ratio (excluding minority interest revenues) 1) | 92.8% | 78.3% | 86.6% | 84.6% | 82.6% | ||||||
| Compensation/revenue ratio | 61.1% | 56.3% | 59.4% | 58.4% | 55.4% | ||||||
| Compensation/revenue ratio (excluding minority interest revenues) 1) | 62.2% | 56.9% | 59.4% | 59.2% | 55.4% | ||||||
| Pre-tax margin | 6.3% | 23.0% | 11.9% | 15.6% | 14.5% | ||||||
| Pre-tax margin (excluding minority interest revenues) 1) | 4.6% | 22.2% | 11.9% | 14.5% | 14.5% | ||||||
| Return on average allocated capital | 4.9% | 25.6% | 5.6% | 14.8% | 11.9% | ||||||
| Average allocated capital in CHF m | 10,583 | 9,726 | 11,037 | 10,139 | 11,171 | ||||||
| 1) Excluding CHF 53 million, CHF 40 million and CHF 93 million in 2Q2004, 1Q2004 and 6 months 2004, respectively, in minority interest revenues relating to the FIN 46R consolidation. | |||||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | |||||||
| Total assets in CHF bn | 755.3 | 762.9 | 644.4 | (1) | 17 | ||||||
| Number of employees (full-time equivalents) | 15,801 | 15,505 | 1) | 15,374 | 1) | 2 | 3 | ||||
| 1) Prior periods have been adjusted to conform to the current presentation. | |||||||||||
| Wealth & Asset Management income statement | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net interest income | 42 | 19 | 11 | 121 | 282 | 61 | 13 | 369 | |||||||||
| Asset management and administrative fees | 632 | 634 | 569 | 0 | 11 | 1,266 | 1,131 | 12 | |||||||||
| Trading revenues including realized gains/(losses) from investment securities, net | 53 | 43 | 70 | 23 | (24) | 96 | 123 | (22) | |||||||||
| Other revenues | 772 | 170 | (2) | 354 | – | 942 | 56 | – | |||||||||
| Total noninterest revenues | 1,457 | 847 | 637 | 72 | 129 | 2,304 | 1,310 | 76 | |||||||||
| Net revenues | 1,499 | 866 | 648 | 73 | 131 | 2,365 | 1,323 | 79 | |||||||||
| Compensation and benefits | 276 | 277 | 251 | 0 | 10 | 553 | 519 | 7 | |||||||||
| Other expenses | 360 | 347 | 342 | 4 | 5 | 707 | 680 | 4 | |||||||||
| of which commission and distribution expenses | 218 | 223 | 193 | (2) | 13 | 441 | 373 | 18 | |||||||||
| Total operating expenses | 636 | 624 | 593 | 2 | 7 | 1,260 | 1,199 | 5 | |||||||||
| Income from continuing operations before taxes and minority interests | 863 | 242 | 55 | 257 | – | 1,105 | 124 | – | |||||||||
| Income tax expense | 100 | 38 | 7 | 163 | – | 138 | 10 | – | |||||||||
| Minority interests, net of tax | 462 | 68 | 0 | – | – | 530 | 0 | – | |||||||||
| Income from continuing operations | 301 | 136 | 48 | 121 | – | 437 | 114 | 283 | |||||||||
| Income/(loss) from discontinued operations, net of tax | 0 | 0 | (1) | – | – | 0 | 20 | – | |||||||||
| Net income | 301 | 136 | 47 | 121 | – | 437 | 134 | 226 | |||||||||
| Wealth & Asset Management revenue disclosure | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Credit Suisse Asset Management | 588 | 600 | 495 | (2) | 19 | 1,188 | 1,030 | 15 | |||||||||
| of which Alternative Capital | 106 | 117 | 121 | (9) | (12) | 223 | 197 | 13 | |||||||||
| Private Client Services | 69 | 72 | 69 | (4) | 0 | 141 | 138 | 2 | |||||||||
| Other | 0 | (1) | 0 | – | – | (1) | 2 | – | |||||||||
| Total before investment related gains | 657 | 671 | 564 | (2) | 16 | 1,328 | 1,170 | 14 | |||||||||
| Investment related gains 1) | 380 | 127 | 84 | 199 | 352 | 507 | 153 | 231 | |||||||||
| Net revenues before minority interests | 1,037 | 798 | 648 | 30 | 60 | 1,835 | 1,323 | 39 | |||||||||
| Minority interest revenues 2) | 462 | 68 | 0 | – | – | 530 | 0 | – | |||||||||
| Net revenues | 1,499 | 866 | 648 | 73 | 131 | 2,365 | 1,323 | 79 | |||||||||
| 1) Includes realized and unrealized gains/losses from investments as well as net interest income, trading and other revenues associated with the Alternative Capital division and Other. | |||||||||||||||||
| 2) Reflects minority interest revenues relating to the FIN 46R consolidation. | |||||||||||||||||
| Wealth & Asset Management key information | |||||||||||
| 6 months | |||||||||||
| 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | |||||||
| Cost/income ratio | 42.4% | 72.1% | 91.5% | 53.3% | 90.6% | ||||||
| Cost/income ratio (excluding minority interest revenues) 1) | 61.3% | 78.2% | 91.5% | 68.7% | 90.6% | ||||||
| Compensation/revenue ratio | 18.4% | 32.0% | 38.7% | 23.4% | 39.2% | ||||||
| Compensation/revenue ratio (excluding minority interest revenues) 1) | 26.6% | 34.7% | 38.7% | 30.1% | 39.2% | ||||||
| Pre-tax margin | 57.6% | 27.9% | 8.5% | 46.7% | 9.4% | ||||||
| Pre-tax margin (excluding minority interest revenues) 1) | 38.7% | 21.8% | 8.5% | 31.3% | 9.4% | ||||||
| Return on average allocated capital | 96.6% | 48.8% | 15.8% | 73.8% | 19.6% | ||||||
| Average allocated capital in CHF m | 1,246 | 1,115 | 1,189 | 1,184 | 1,365 | ||||||
| Net new assets in CHF bn | |||||||||||
| Credit Suisse Asset Management 2) | 1.3 | 0.2 | (1.9) | 1.5 | (6.6) | ||||||
| of which Alternative Capital | 0.3 | 0.7 | (0.4) | 1.0 | (0.7) | ||||||
| Private Client Services | 1.4 | 0.4 | (1.8) | 1.8 | (0.6) | ||||||
| Total net new assets | 2.7 | 0.6 | (3.7) | 3.3 | (7.2) | ||||||
| 1) Excluding CHF 462 million, CHF 68 million and CHF 530 million in 2Q2004, 1Q2004 and 6 months 2004, respectively, in minority interest revenues relating to the FIN 46R consolidation. | |||||||||||
| 2) Credit Suisse Asset Management balances for Assets under management and Net new assets include assets managed on behalf of other entities within Credit Suisse Group. This differs from the presentation in the overview of Credit Suisse Group, where such assets are eliminated. | |||||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| in CHF bn | 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | ||||||
| Assets under management | |||||||||||
| Credit Suisse Asset Management 1) | 424.7 | 430.9 | 412.7 | (1) | 3 | ||||||
| of which Alternative Capital | 39.1 | 34.0 | 31.1 | 15 | 26 | ||||||
| Private Client Services | 64.6 | 64.4 | 61.8 | 0 | 5 | ||||||
| Total assets under management | 489.3 | 495.3 | 474.5 | (1) | 3 | ||||||
| of which advisory | 166.3 | 163.8 | 158.3 | 2 | 5 | ||||||
| of which discretionary | 323.0 | 331.5 | 316.2 | (3) | 2 | ||||||
| Active private equity investments | 1.2 | 1.4 | 1.3 | (14) | (8) | ||||||
| Number of employees (full-time equivalents) | 2,917 | 2,948 | 2) | 2,967 | 2) | (1) | (2) | ||||
| 1) Credit Suisse Asset Management balances for Assets under management and Net new assets include assets managed on behalf of other entities within Credit Suisse Group. This differs from the presentation in the overview of Credit Suisse Group, where such assets are eliminated. | |||||||||||
| 2) Prior periods have been adjusted to conform to the current presentation. | |||||||||||
| Credit Suisse First Boston | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in USD m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net revenues | 3,587 | 3,891 | 2,980 | (8) | 20 | 7,478 | 6,067 | 23 | |||||||||
| Total operating expenses | 2,703 | 2,979 | 2,601 | (9) | 4 | 5,682 | 5,088 | 12 | |||||||||
| Net income | 329 | 607 | 156 | (46) | 111 | 936 | 592 | 58 | |||||||||
| Institutional Securities income statement | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in USD m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net interest income | 825 | 834 | 703 | (1) | 17 | 1,659 | 1,308 | 27 | |||||||||
| Investment banking | 700 | 672 | 656 | 4 | 7 | 1,372 | 1,249 | 10 | |||||||||
| Commissions and fees | 476 | 610 | 469 | (22) | 1 | 1,086 | 916 | 19 | |||||||||
| Trading revenues including realized gains/(losses) from investment securities, net | 141 | 999 | 577 | (86) | (76) | 1,140 | 1,541 | (26) | |||||||||
| Other revenues | 275 | 83 | 87 | 231 | 216 | 358 | 72 | 397 | |||||||||
| Total noninterest revenues | 1,592 | 2,364 | 1,789 | (33) | (11) | 3,956 | 3,778 | 5 | |||||||||
| Net revenues | 2,417 | 3,198 | 2,492 | (24) | (3) | 5,615 | 5,086 | 10 | |||||||||
| Provision for credit losses | 64 | (17) | 39 | – | 64 | 47 | 151 | (69) | |||||||||
| Compensation and benefits | 1,480 | 1,801 | 1,476 | (18) | 0 | 3,281 | 2,818 | 16 | |||||||||
| Other expenses | 731 | 678 | 678 | 8 | 8 | 1,409 | 1,381 | 2 | |||||||||
| Total operating expenses | 2,211 | 2,479 | 2,154 | (11) | 3 | 4,690 | 4,199 | 12 | |||||||||
| Income from continuing operations before taxes, minority interests and cumulative effect of accounting changes | 142 | 736 | 299 | (81) | (53) | 878 | 736 | 19 | |||||||||
| Income tax expense | 7 | 206 | 169 | (97) | (96) | 213 | 233 | (9) | |||||||||
| Minority interests, net of tax | 41 | 32 | 0 | 28 | – | 73 | 0 | – | |||||||||
| Income from continuing operations before cumulative effect of accounting changes | 94 | 498 | 130 | (81) | (28) | 592 | 503 | 18 | |||||||||
| Cumulative effect of accounting changes, net of tax | 0 | 0 | (10) | – | – | 0 | (10) | – | |||||||||
| Net income | 94 | 498 | 120 | (81) | (22) | 592 | 493 | 20 | |||||||||
| Institutional Securities revenue disclosure | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in USD m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Debt underwriting | 366 | 318 | 363 | 15 | 1 | 684 | 612 | 12 | |||||||||
| Equity underwriting | 146 | 194 | 129 | (25) | 13 | 340 | 211 | 61 | |||||||||
| Underwriting | 512 | 512 | 492 | 0 | 4 | 1,024 | 823 | 24 | |||||||||
| Advisory and other fees | 188 | 160 | 164 | 18 | 15 | 348 | 426 | (18) | |||||||||
| Total investment banking | 700 | 672 | 656 | 4 | 7 | 1,372 | 1,249 | 10 | |||||||||
| Fixed income | 773 | 1,495 | 1,222 | (48) | (37) | 2,268 | 2,635 | (14) | |||||||||
| Equity | 650 | 884 | 732 | (26) | (11) | 1,534 | 1,261 | 22 | |||||||||
| Total trading | 1,423 | 2,379 | 1,954 | (40) | (27) | 3,802 | 3,896 | (2) | |||||||||
| Other (including loan portfolio) | 294 | 147 | (118) | 100 | – | 441 | (59) | – | |||||||||
| Net revenues | 2,417 | 3,198 | 2,492 | (24) | (3) | 5,615 | 5,086 | 10 | |||||||||
| Commissions, fees and other | 530 | 601 | 454 | (12) | 17 | 1,131 | 878 | 29 | |||||||||
| Trading revenues (principal transactions) | 246 | 986 | 840 | (75) | (71) | 1,232 | 1,794 | (31) | |||||||||
| Net interest income | 647 | 792 | 660 | (18) | (2) | 1,439 | 1,224 | 18 | |||||||||
| Total trading | 1,423 | 2,379 | 1,954 | (40) | (27) | 3,802 | 3,896 | (2) | |||||||||
| Wealth & Asset Management income statement | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in USD m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Net interest income | 33 | 16 | 8 | 106 | 313 | 49 | 10 | 390 | |||||||||
| Asset management and administrative fees | 490 | 507 | 428 | (3) | 14 | 997 | 838 | 19 | |||||||||
| Trading revenues including realized gains/(losses) from investment securities, net | 41 | 35 | 54 | 17 | (24) | 76 | 92 | (17) | |||||||||
| Other revenues | 606 | 135 | (2) | 349 | – | 741 | 41 | – | |||||||||
| Total noninterest revenues | 1,137 | 677 | 480 | 68 | 137 | 1,814 | 971 | 87 | |||||||||
| Net revenues | 1,170 | 693 | 488 | 69 | 140 | 1,863 | 981 | 90 | |||||||||
| Compensation and benefits | 213 | 222 | 190 | (4) | 12 | 435 | 385 | 13 | |||||||||
| Other expenses | 279 | 278 | 257 | 0 | 9 | 557 | 504 | 11 | |||||||||
| of which commission and distribution expenses | 169 | 178 | 144 | (5) | 17 | 347 | 276 | 26 | |||||||||
| Total operating expenses | 492 | 500 | 447 | (2) | 10 | 992 | 889 | 12 | |||||||||
| Income from continuing operations before taxes and minority interests | 678 | 193 | 41 | 251 | – | 871 | 92 | – | |||||||||
| Income tax expense | 79 | 30 | 5 | 163 | – | 109 | 8 | – | |||||||||
| Minority interests, net of tax | 364 | 54 | 0 | – | – | 418 | 0 | – | |||||||||
| Income from continuing operations | 235 | 109 | 36 | 116 | – | 344 | 84 | 310 | |||||||||
| Income/(loss) from discontinued operations, net of tax | 0 | 0 | 0 | – | – | 0 | 15 | – | |||||||||
| Net income | 235 | 109 | 36 | 116 | – | 344 | 99 | 247 | |||||||||
| Wealth & Asset Management revenue disclosure | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in USD m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Credit Suisse Asset Management | 456 | 480 | 373 | (5) | 22 | 936 | 763 | 23 | |||||||||
| of which Alternative Capital | 81 | 94 | 91 | (14) | (11) | 175 | 146 | 20 | |||||||||
| Private Client Services | 53 | 58 | 52 | (9) | 2 | 111 | 102 | 9 | |||||||||
| Other | 0 | (1) | 0 | – | – | (1) | 2 | – | |||||||||
| Total before investment related gains | 509 | 537 | 425 | (5) | 20 | 1,046 | 867 | 21 | |||||||||
| Investment related gains 1) | 298 | 101 | 63 | 195 | 373 | 399 | 114 | 250 | |||||||||
| Net revenues before minority interests | 807 | 638 | 488 | 26 | 65 | 1,445 | 981 | 47 | |||||||||
| Minority interest revenues 2) | 363 | 55 | 0 | – | – | 418 | 0 | – | |||||||||
| Net revenues | 1,170 | 693 | 488 | 69 | 140 | 1,863 | 981 | 90 | |||||||||
| 1) Includes realized and unrealized gains/losses from investments as well as net interest income, trading and other revenues associated with the Alternative Capital division and Other. | |||||||||||||||||
| 2) Reflects minority interest revenues relating to the FIN 46R consolidation. | |||||||||||||||||
| Wealth & Asset Management key information | |||||||||||
| 6 months | |||||||||||
| in USD bn | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Net new assets | |||||||||||
| Credit Suisse Asset Management 1) | 1.0 | 0.2 | (1.5) | 1.2 | (4.9) | ||||||
| of which Alternative Capital | 0.2 | 0.6 | (0.2) | 0.8 | (0.5) | ||||||
| Private Client Services | 1.1 | 0.3 | (1.3) | 1.4 | (0.5) | ||||||
| Total net new assets | 2.1 | 0.5 | (2.8) | 2.6 | (5.4) | ||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| in USD bn | 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | ||||||
| Assets under management | |||||||||||
| Credit Suisse Asset Management 1) | 335.6 | 338.1 | 334.0 | (1) | 0 | ||||||
| of which Alternative Capital | 30.8 | 26.6 | 25.1 | 16 | 23 | ||||||
| Private Client Services | 51.1 | 50.6 | 50.0 | 1 | 2 | ||||||
| Total assets under management | 386.7 | 388.7 | 384.0 | (1) | 1 | ||||||
| of which advisory | 131.4 | 128.6 | 128.3 | 2 | 2 | ||||||
| of which discretionary | 255.3 | 260.1 | 255.7 | (2) | 0 | ||||||
| Active private equity investments | 0.9 | 1.1 | 1.0 | (18) | (10) | ||||||
| 1) Credit Suisse Asset Management balances for Assets under management and Net new assets include assets managed on behalf of other entities within Credit Suisse Group. This differs from the presentation in the overview of Credit Suisse Group, where such assets are eliminated. | |||||||||||
|
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | CREDIT SUISSE GROUP |
| Consolidated statements of income (unaudited) | |||||||||||||||||
| Change | Change | Change | |||||||||||||||
| in % from | in % from | in % from | |||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 1Q2004 | 2Q2003 | 2004 | 2003 | 2003 | |||||||||
| Interest and dividend income | 7,896 | 7,742 | 7,504 | 2 | 5 | 15,638 | 14,031 | 11 | |||||||||
| Interest expense | (4,536) | (4,663) | (4,484) | (3) | 1 | (9,199) | (8,516) | 8 | |||||||||
| Net interest income | 3,360 | 3,079 | 3,020 | 9 | 11 | 6,439 | 5,515 | 17 | |||||||||
| Commissions and fees | 3,418 | 3,563 | 3,171 | (4) | 8 | 6,981 | 6,192 | 13 | |||||||||
| Trading revenues | 712 | 1,516 | 1,214 | (53) | (41) | 2,228 | 2,501 | (11) | |||||||||
| Realized gains/(losses) from investment securities, net | 198 | 528 | 589 | (63) | (66) | 726 | 670 | 8 | |||||||||
| Insurance net premiums earned | 4,708 | 7,417 | 4,618 | (37) | 2 | 12,125 | 12,076 | 0 | |||||||||
| Other revenues | 1,114 | 460 | (476) | 142 | – | 1,574 | (130) | – | |||||||||
| Total noninterest revenues | 10,150 | 13,484 | 9,116 | (25) | 11 | 23,634 | 21,309 | 11 | |||||||||
| Net revenues | 13,510 | 16,563 | 12,136 | (18) | 11 | 30,073 | 26,824 | 12 | |||||||||
| Policyholder benefits, claims and dividends | 4,623 | 7,594 | 4,645 | (39) | 0 | 12,217 | 12,012 | 2 | |||||||||
| Provision for credit losses | 133 | 34 | 114 | 291 | 17 | 167 | 311 | (46) | |||||||||
| Total benefits, claims and credit losses | 4,756 | 7,628 | 4,759 | (38) | 0 | 12,384 | 12,323 | 0 | |||||||||
| Insurance underwriting, acquisition and administration expenses | 1,117 | 1,059 | 1,046 | 5 | 7 | 2,176 | 2,191 | (1) | |||||||||
| Banking compensation and benefits | 3,087 | 3,428 | 3,092 | (10) | 0 | 6,515 | 6,034 | 8 | |||||||||
| Other expenses | 1,996 | 1,823 | 1,901 | 9 | 5 | 3,819 | 3,825 | 0 | |||||||||
| Goodwill impairment | 0 | 0 | 1,510 | – | – | 0 | 1,510 | – | |||||||||
| Restructuring charges | 60 | 4 | 35 | – | 71 | 64 | 60 | 7 | |||||||||
| Total operating expenses | 6,260 | 6,314 | 7,584 | (1) | (17) | 12,574 | 13,620 | (8) | |||||||||
| Income/(loss) from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes | 2,494 | 2,621 | (207) | (5) | – | 5,115 | 881 | 481 | |||||||||
| Income tax expense/(benefit) | 442 | 570 | 357 | (22) | 24 | 1,012 | 677 | 49 | |||||||||
| Dividends on preferred securities for consolidated entities | 0 | 0 | 33 | – | – | 0 | 65 | – | |||||||||
| Minority interests, net of tax | 548 | 119 | 8 | 361 | – | 667 | 7 | – | |||||||||
| Income/(loss) from continuing operations before extraordinary items and cumulative effect of accounting changes | 1,504 | 1,932 | (605) | (22) | – | 3,436 | 132 | – | |||||||||
| Income/(loss) from discontinued operations, net of tax | (47) | (65) | 60 | (28) | – | (112) | 127 | – | |||||||||
| Extraordinary items, net of tax | 0 | 0 | 1 | – | – | 0 | 5 | – | |||||||||
| Cumulative effect of accounting changes, net of tax | 0 | (6) | (12) | – | – | (6) | (541) | (99) | |||||||||
| Net income/(loss) | 1,457 | 1,861 | (556) | (22) | – | 3,318 | (277) | – | |||||||||
| Basic earnings per share, in CHF | |||||||||||||||||
| Income/(loss) from continuing operations before extraordinary items and cumulative effect of accounting changes | 1.30 | 1.63 | (0.52) | 2.93 | 0.12 | ||||||||||||
| Income/(loss) from discontinued operations, net of tax | (0.04) | (0.06) | 0.05 | (0.10) | 0.11 | ||||||||||||
| Extraordinary items, net of tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
| Cumulative effect of accounting changes, net of tax | 0.00 | (0.01) | (0.01) | (0.01) | (0.47) | ||||||||||||
| Net income/(loss) available for common shares | 1.26 | 1.56 | (0.48) | 2.82 | (0.24) | ||||||||||||
| Diluted earnings per share, in CHF | |||||||||||||||||
| Income/(loss) from continuing operations before extraordinary items and cumulative effect of accounting changes | 1.22 | 1.53 | (0.52) | 2.76 | 0.12 | ||||||||||||
| Income/(loss) from discontinued operations, net of tax | (0.04) | (0.05) | 0.05 | (0.09) | 0.11 | ||||||||||||
| Extraordinary items, net of tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
| Cumulative effect of accounting changes, net of tax | 0.00 | 0.00 | (0.01) | 0.00 | (0.47) | ||||||||||||
| Net income/(loss) available for common shares | 1.18 | 1.48 | (0.48) | 2.67 | (0.24) | ||||||||||||
The accompanying notes to the unaudited condensed consolidated financial statements are an integral part of these statements.
| Consolidated balance sheets (unaudited) | |||||||||||
| Change | Change | ||||||||||
| in % from | in % from | ||||||||||
| in CHF m | 30.06.04 | 31.03.04 | 31.12.03 | 31.03.04 | 31.12.03 | ||||||
| Assets | |||||||||||
| Cash and due from banks | 31,017 | 30,030 | 24,799 | 3 | 25 | ||||||
| Interest-bearing deposits with banks | 5,394 | 3,838 | 2,992 | 41 | 80 | ||||||
| Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions | 300,027 | 283,986 | 257,083 | 6 | 17 | ||||||
| Securities received as collateral | 21,887 | 27,511 | 15,151 | (20) | 44 | ||||||
| Trading assets (of which CHF 103,062 m, CHF 130,879 m and CHF 103,286 m encumbered) 1) | 342,881 | 365,420 | 297,778 | (6) | 15 | ||||||
| Investment securities (of which CHF 863 m, CHF 891 m and CHF 857 m encumbered) 2) | 102,404 | 105,497 | 105,807 | (3) | (3) | ||||||
| Other investments | 12,874 | 10,361 | 7,894 | 24 | 63 | ||||||
| Real estate held for investment | 9,005 | 9,292 | 9,148 | (3) | (2) | ||||||
| Loans, net of allowance for loan losses of CHF 3,790 m, CHF 4,189 m and CHF 4,646 m | 183,355 | 183,155 | 177,179 | 0 | 3 | ||||||
| Premises and equipment | 7,457 | 7,647 | 7,819 | (2) | (5) | ||||||
| Goodwill | 12,542 | 12,627 | 12,325 | (1) | 2 | ||||||
| Intangible assets | 4,077 | 4,067 | 4,056 | 0 | 1 | ||||||
| Assets held for separate accounts 1) | 4,052 | 4,081 | 3,991 | (1) | 2 | ||||||
| Other assets (of which CHF 3,926 m, CHF 4,263 m and CHF 2,644 m encumbered) | 94,608 | 90,595 | 78,286 | 4 | 21 | ||||||
| Discontinued operations – assets | 104 | 89 | 0 | 17 | – | ||||||
| Total assets | 1,131,684 | 1,138,196 | 1,004,308 | (1) | 13 | ||||||
| Liabilities and shareholders' equity | |||||||||||
| Deposits | 303,864 | 305,791 | 261,989 | (1) | 16 | ||||||
| Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions | 248,897 | 258,330 | 236,847 | (4) | 5 | ||||||
| Obligation to return securities received as collateral | 21,887 | 27,511 | 15,151 | (20) | 44 | ||||||
| Trading liabilities | 182,765 | 179,777 | 156,331 | 2 | 17 | ||||||
| Short-term borrowings | 13,806 | 22,323 | 11,497 | (38) | 20 | ||||||
| Provisions from the insurance business 1) | 136,694 | 138,713 | 130,537 | (1) | 5 | ||||||
| Long-term debt | 102,263 | 96,387 | 89,697 | 6 | 14 | ||||||
| Liabilities held for separate accounts 1) | 4,049 | 4,081 | 3,987 | (1) | 2 | ||||||
| Other liabilities | 76,030 | 67,534 | 61,300 | 13 | 24 | ||||||
| Discontinued operations – liabilities | 109 | 153 | 24 | (29) | 354 | ||||||
| Preferred securities | 0 | 0 | 2,214 | – | – | ||||||
| Minority interests | 6,036 | 2,258 | 743 | 167 | – | ||||||
| Total liabilities | 1,096,400 | 1,102,858 | 970,317 | (1) | 13 | ||||||
| Common shares | 1,197 | 1,196 | 1,195 | 0 | 0 | ||||||
| Additional paid-in capital | 22,954 | 22,871 | 23,586 | 0 | (3) | ||||||
| Retained earnings | 18,191 | 16,734 | 14,873 | 9 | 22 | ||||||
| Treasury shares, at cost | (4,045) | (3,526) | (3,144) | 15 | 29 | ||||||
| Accumulated other comprehensive income/(loss) | (3,013) | (1,937) | (2,519) | 56 | 20 | ||||||
| Total shareholders' equity | 35,284 | 35,338 | 33,991 | 0 | 4 | ||||||
| Total liabilities and shareholders' equity | 1,131,684 | 1,138,196 | 1,004,308 | (1) | 13 | ||||||
| 1) Certain reclassifications have been made to conform to the current presentation. | |||||||||||
| 2) Encumbered investment securities adjusted. | |||||||||||
The accompanying notes to the unaudited condensed consolidated financial statements are an integral part of these statements.
| Consolidated changes in shareholders' equity (unaudited) | |||||||||||||||
| Accumulated | |||||||||||||||
| Common | other | ||||||||||||||
| Additional | shares in | comprehen- | |||||||||||||
| Common shares | Common | paid in | Retained | treasury | sive income/ | ||||||||||
| 6 months, in CHF m, except common shares outstanding | outstanding | 1) | shares | capital | earnings | at cost | 2) | (loss) | Total | ||||||
| Balance December 31, 2002 | 1,116,058,305 | 1,190 | 24,417 | 14,214 | (4,387) | (1,256) | 34,178 | ||||||||
| Net income | (277) | (277) | |||||||||||||
| Other comprehensive income/(loss), net of tax | 500 | 500 | |||||||||||||
| Issuance of common shares | 88,432 | 2 | 2 | ||||||||||||
| Issuance of treasury shares | 81,389,940 | 25 | 3,022 | 3,047 | |||||||||||
| Repurchase of treasury shares | (89,593,287) | (2,966) | (2,966) | ||||||||||||
| Share-based compensation | 14,915,049 | (762) | 1,043 | 281 | |||||||||||
| Net premium/discount on treasury shares and own share derivative activitiy | 27 | 27 | |||||||||||||
| Cash dividends paid | (111) | (111) | |||||||||||||
| Balance June 30, 2003 | 1,122,858,439 | 1,190 | 23,709 | 13,826 | (3,288) | (756) | 34,681 | ||||||||
| Balance December 31, 2003 | 1,130,362,948 | 1,195 | 23,586 | 14,873 | (3,144) | (2,519) | 33,991 | ||||||||
| Net income | 3,318 | 3,318 | |||||||||||||
| Other comprehensive income/(loss), net of tax | (494) | (494) | |||||||||||||
| Issuance of common shares | 1,899,701 | 2 | 22 | 24 | |||||||||||
| Issuance of treasury shares | 194,805,072 | (32) | 8,910 | 8,878 | |||||||||||
| Repurchase of treasury shares | (238,351,475) | (10,933) | (10,933) | ||||||||||||
| Share-based compensation | 17,748,748 | (652) | 1,122 | 470 | |||||||||||
| Other | 30 | 30 | |||||||||||||
| Balance June 30, 2004 | 1,106,464,994 | 1,197 | 22,954 | 18,191 | (4,045) | (3,013) | 35,284 | ||||||||
| 1) At par value CHF 1.00 each, fully paid, net of treasury shares. | |||||||||||||||
| 2) Comprising 90,440,621, 64,642,966 and 67,121,713 treasury shares at June 30, 2004, December 31, 2003 and June 30, 2003, respectively. In addition to the treasury shares, a maximum of 270,773,682, 272,718,007 and 278,863,688 unissued shares (conditional and authorized capital) at June 30, 2004, December 31, 2003 and June 30, 2003, respectively, were available for issuance without further approval of the shareholders. | |||||||||||||||
| Comprehensive income (unaudited) | |||||||||||
| 6 months | |||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Net income/(loss) | 1,457 | 1,861 | (556) | 3,318 | (277) | ||||||
| Other comprehensive income/(loss) | (1,076) | 582 | 899 | (494) | 500 | ||||||
| Comprehensive income | 381 | 2,443 | 343 | 2,824 | 223 | ||||||
The accompanying notes to the unaudited condensed consolidated financial statements are an integral part of these statements.
| Consolidated statement of cash flows (unaudited) | |||||
| 6 months | |||||
| in CHF m | 2004 | 2003 | |||
| Operating activities of continuing operations | |||||
| Net income/(loss) | 3,318 | (277) | |||
| Income/(loss) from discontinued operations, net of tax | 112 | (127) | |||
| Income/(loss) from continuing operations | 3,430 | (404) | |||
| Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities of continuing operations | |||||
| Impairment, depreciation and amortization | 1,229 | 2,992 | |||
| Provision for credit losses | 167 | 311 | |||
| Deferred tax provision | (18) | (460) | |||
| Restructuring charges | 64 | 60 | |||
| Change in technical provisions from the insurance business | 6,609 | 6,251 | |||
| (Gain)/loss from investment securities | (364) | (942) | |||
| Share of net income from equity method investments | (139) | 4 | |||
| Cumulative effect of accounting changes, net of tax | 6 | 541 | |||
| Receivables from the insurance business | (882) | 193 | |||
| Payables from the insurance business | (2,313) | (1,940) | |||
| Trading assets and liabilities | 14,967 | 35,278 | |||
| Deferred policy acquisition costs | (419) | (228) | |||
| (Increase)/decrease in accrued interest, fees receivable and other assets | (51,281) | (53,024) | |||
| Increase/(decrease) in accrued expenses and other liabilities | 18,696 | 16,148 | |||
| Other, net | 924 | 3,950 | |||
| Total adjustments | (12,754) | 9,134 | |||
| Net cash provided by/(used in) operating activities of continuing operations | (9,324) | 8,730 | |||
| Investing activities of continuing operations | |||||
| (Increase)/decrease in interest-bearing deposits with banks | (1,946) | (3,887) | |||
| (Increase)/decrease in central bank funds sold, securities purchased under resale agreements and securities borrowing transactions | (45,524) | 4,941 | |||
| Purchase of investment securities | (27,714) | (59,160) | |||
| Proceeds from sale of investment securities | 18,308 | 36,891 | |||
| Maturities of investment securities | 10,950 | 10,193 | |||
| Investments in subsidiaries and other investments | (3,165) | (3,290) | |||
| Proceeds from sale of other investments | 2,112 | 1,607 | |||
| (Increase)/decrease in loans | (9,781) | (952) | |||
| Proceeds from sales of loans | 2,705 | 2,372 | |||
| Capital expenditures for premises and equipment and intangible assets | (427) | (463) | |||
| Proceeds from sale of premises and equipment and intangible assets | 41 | 74 | |||
| Other, net | 128 | 15 | |||
| Net cash provided by/(used in) investing activities of continuing operations | (54,313) | (11,659) | |||
| Financing activities of continuing operations | |||||
| Increase/(decrease) in deposits | 42,619 | 34,530 | |||
| Increase/(decrease) in short-term borrowings | 2,126 | (7,702) | |||
| Increase/(decrease) in central bank funds purchased, securities sold under repurchase agreements and securities lending transactions | 14,327 | (25,798) | |||
| Issuances of long-term debt | 23,386 | 9,561 | |||
| Repayments of long-term debt | (8,634) | (12,557) | |||
| Issuances of common shares | 24 | 2 | |||
| Issuances of treasury shares | 8,878 | 3,047 | |||
| Repurchase of treasury shares | (10,933) | (2,966) | |||
| Dividends paid/capital repayments (including minority interest and trust preferred securities) | (16) | (218) | |||
| Other, net | (1,900) | 393 | |||
| Net cash provided by/(used in) financing activities of continuing operations | 69,877 | (1,708) | |||
| Effect of exchange rate changes on cash and due from banks | 96 | (184) | |||
| Discontinued operations | |||||
| Net cash provided by discontinued operations | (125) | 1,350 | |||
| Proceeds from sale of stock by subsidiaries | 7 | 2,509 | |||
| Net increase/(decrease) in cash and due from banks | 6,218 | (962) | |||
| Cash and due from banks at beginning of period | 24,799 | 28,461 | |||
| Cash and due from banks at end of period | 31,017 | 27,499 | |||
| Supplemental disclosures of cash flow information (unaudited) | |||||
| 6 months | |||||
| in CHF m | 2004 | 2003 | |||
| Cash paid during the year for income taxes | 856 | 446 | |||
| Cash paid during the year for interest | 8,862 | 8,574 | |||
| Assets acquired and liabilities assumed in business acquisitions | |||||
| Fair value of assets acquired | 3 | 523 | |||
| Fair value of liabilities assumed | 0 | (460) | |||
| Cash paid related to business acquisitions | 3 | 63 | |||
| Assets and liabilities sold in business divestitures | |||||
| Fair value of assets sold | (711) | (17,707) | |||
| Fair value of liabilities sold | 690 | 15,031 | |||
| Cash received related to business divestitures | (21) | (2,676) | |||
| Share based compensation – pro forma information | |||||||||||||||||
| 6 months | |||||||||||||||||
| in CHF m, except the per share amounts | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||||||||
| Net income/(loss) – as reported | 1,457 | 1,861 | (556) | 3,318 | (277) | ||||||||||||
| Add: Share-based compensation expense included in reported net income, net of related tax effects | 170 | 186 | 295 | 356 | 637 | ||||||||||||
| Deduct: Total share-based compensation expense determined under the fair value method for all awards vested during the year, net of related tax effects | (170) | (190) | (343) | (360) | (736) | ||||||||||||
| Net income/(loss) – pro forma | 1,457 | 1,857 | (604) | 3,314 | (376) | ||||||||||||
| Net income/(loss) available for common shares for basic EPS – pro forma 1) | 1,426 | 1,794 | (604) | 3,220 | (376) | ||||||||||||
| Net income/(loss) available for common shares for diluted EPS – pro forma 2) | 1,485 | 1,880 | (604) | 3,365 | (376) | ||||||||||||
| Basic earnings per share – as reported | 1.26 | 1.56 | (0.48) | 2.82 | (0.24) | ||||||||||||
| Basic earnings per share – pro forma | 1.26 | 1.55 | (0.52) | 2.82 | (0.32) | ||||||||||||
| Diluted earnings per share – as reported | 1.18 | 1.48 | (0.48) | 2.67 | (0.24) | ||||||||||||
| Diluted earnings per share – pro forma | 1.18 | 1.48 | (0.52) | 2.67 | (0.32) | ||||||||||||
| 1) In accordance with EITF 03-6, the basic earnings per share calculation considers the effect of participating securities. Specifically, the allocation of undistributed income related to the mandatory convertible securities is a reduction to the net income available to common shareholders for the purposes of the calculation. The mandatory convertible securities holders are not contractually obligated to participate in the losses of Credit Suisse Group, thus the calculation is not affected in a loss period. | |||||||||||||||||
| 2) Under the if converted method for calculating diluted EPS, the interest on the mandatory convertible securities is included, when the effect is dilutive. | |||||||||||||||||
| Segment reporting | ||||||||||||||||
| Net revenues | ||||||||||||||||
| 6 months | ||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | |||||||||||
| Private Banking | 1,869 | 1,940 | 1,478 | 3,809 | 2,965 | |||||||||||
| Corporate & Retail Banking | 950 | 787 | 789 | 1,737 | 1,563 | |||||||||||
| Life & Pensions | 3,225 | 6,028 | 3,342 | 9,253 | 9,381 | |||||||||||
| Non-Life | 2,995 | 3,125 | 2,761 | 6,120 | 5,433 | |||||||||||
| Institutional Securities 1) | 3,134 | 3,997 | 3,312 | 7,131 | 6,866 | |||||||||||
| Wealth & Asset Management 2) | 1,499 | 866 | 648 | 2,365 | 1,323 | |||||||||||
| Corporate Center | (162) | (180) | (194) | (342) | (707) | |||||||||||
| Credit Suisse Group | 13,510 | 16,563 | 12,136 | 30,073 | 26,824 | |||||||||||
| 1) Including CHF 53 million, CHF 40 million and CHF 93 million in 2Q2004, 1Q2004 and 6 months 2004, respectively, from minority interest revenues relating to the FIN 46R consolidation. | ||||||||||||||||
| 2) Including CHF 462 million, CHF 68 million and CHF 530 million in 2Q2004, 1Q2004 and 6 months 2004, respectively, from minority interest revenues relating to the FIN 46R consolidation. | ||||||||||||||||
| Net income | ||||||||||||||||
| 6 months | ||||||||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | |||||||||||
| Private Banking | 665 | 681 | 401 | 1,346 | 797 | |||||||||||
| Corporate & Retail Banking | 256 | 189 | 163 | 445 | 318 | |||||||||||
| Life & Pensions | 67 | 139 | (1,301) | 206 | (1,818) | |||||||||||
| Non-Life | 82 | 103 | 91 | 185 | 183 | |||||||||||
| Institutional Securities | 129 | 623 | 155 | 752 | 666 | |||||||||||
| Wealth & Asset Management | 301 | 136 | 47 | 437 | 134 | |||||||||||
| Corporate Center | (43) | (10) | (112) | (53) | (557) | |||||||||||
| Credit Suisse Group | 1,457 | 1,861 | (556) | 3,318 | (277) | |||||||||||
| Total assets | |||||||
| in CHF m | 30.06.04 | 31.12.03 | |||||
| Private Banking | 194,150 | 174,934 | |||||
| Corporate & Retail Banking | 101,850 | 98,468 | |||||
| Life & Pensions and Non-Life | 164,413 | 163,028 | |||||
| Institutional Securities 1) | 755,317 | 644,375 | |||||
| Wealth & Asset Management 2) | 11,655 | 7,418 | |||||
| Corporate Center | (95,701) | (83,915) | |||||
| Credit Suisse Group | 1,131,684 | 1,004,308 | |||||
| 1) Including CHF 735 million as of June 30, 2004, from minority interest assets relating to the FIN 46R consolidation. | |||||||
| 2) Including CHF 4,816 million as of June 30, 2004, from minority interest assets relating to the FIN 46R consolidation. | |||||||
| Interest and dividend income and interest expense | |||||||||||
| 6 months | |||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Interest income on loans | 1,561 | 1,554 | 1,716 | 3,115 | 3,391 | ||||||
| Interest income on investment securities | 978 | 980 | 944 | 1,958 | 1,856 | ||||||
| Dividend income from investment securities | 65 | 43 | 119 | 108 | 159 | ||||||
| Interest and dividend income on trading assets | 3,412 | 3,435 | 2,967 | 6,847 | 4,997 | ||||||
| Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions | 1,458 | 1,418 | 1,427 | 2,876 | 2,760 | ||||||
| Other | 422 | 312 | 331 | 734 | 868 | ||||||
| Total interest and dividend income | 7,896 | 7,742 | 7,504 | 15,638 | 14,031 | ||||||
| Deposits | (888) | (799) | (1,081) | (1,687) | (1,932) | ||||||
| Short-term borrowings | (36) | (91) | 82 | (127) | (9) | ||||||
| Interest expense on trading liabilities | (1,433) | (1,763) | (1,356) | (3,196) | (2,289) | ||||||
| Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions | (1,238) | (1,216) | (1,203) | (2,454) | (2,469) | ||||||
| Long-term debt | (795) | (655) | (664) | (1,450) | (1,417) | ||||||
| Other | (146) | (139) | (262) | (285) | (400) | ||||||
| Total interest expense | (4,536) | (4,663) | (4,484) | (9,199) | (8,516) | ||||||
| Net interest income | 3,360 | 3,079 | 3,020 | 6,439 | 5,515 | ||||||
| Trading activities | |||||||||||
| Trading-related revenues | |||||||||||
| 6 months | |||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Interest rate products | 24 | 606 | (118) | 630 | 802 | ||||||
| Equity/index-related products | 470 | 583 | 1,158 | 1,053 | 1,123 | ||||||
| Foreign exchange products | 277 | 381 | 281 | 658 | 561 | ||||||
| Other | (59) | (54) | (107) | (113) | 15 | ||||||
| Trading revenues | 712 | 1,516 | 1,214 | 2,228 | 2,501 | ||||||
| Interest and dividend income on trading assets | 3,412 | 3,435 | 2,967 | 6,847 | 4,997 | ||||||
| Interest expense on trading liabilities | (1,433) | (1,763) | (1,356) | (3,196) | (2,289) | ||||||
| Trading interest income, net | 1,979 | 1,672 | 1,611 | 3,651 | 2,708 | ||||||
| Total trading-related revenues | 2,691 | 3,188 | 2,825 | 5,879 | 5,209 | ||||||
| Trading-related assets and liabilities | |||||
| in CHF m | 30.06.04 | 31.12.03 | |||
| Trading assets | |||||
| Debt securities | 200,978 | 163,391 | 1) | ||
| Equity securities | 77,098 | 67,004 | 1) | ||
| Positive replacement values of derivative trading positions | 46,633 | 51,842 | |||
| Other | 18,172 | 15,541 | |||
| Total trading assets | 342,881 | 297,778 | 1) | ||
| Trading liabilities | |||||
| Short positions | 132,580 | 98,424 | |||
| Negative replacement values of derivative trading positions | 50,185 | 57,907 | |||
| Total trading liabilities | 182,765 | 156,331 | |||
| 1) Certain reclassifications have been made to conform to the current presentation. | |||||
| Commissions and fees | |||||||||||
| 6 months | |||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Commissions from lending business | 300 | 210 | 240 | 510 | 441 | ||||||
| Investment and portfolio management fees | 1,178 | 1,141 | 939 | 2,319 | 1,915 | ||||||
| Commissions for other securities business | 43 | 40 | 46 | 83 | 96 | ||||||
| Commissions and fees from fiduciary activities | 1,221 | 1,181 | 985 | 2,402 | 2,011 | ||||||
| Underwriting fees | 624 | 767 | 652 | 1,391 | 1,185 | ||||||
| Brokerage fees | 743 | 972 | 791 | 1,715 | 1,539 | ||||||
| Commissions, brokerage securities underwriting and other securities activities | 1,367 | 1,739 | 1,443 | 3,106 | 2,724 | ||||||
| Fees for other customer services | 530 | 433 | 503 | 963 | 1,016 | ||||||
| Commissions and fees | 3,418 | 3,563 | 3,171 | 6,981 | 6,192 | ||||||
| Loans | |||||
| in CHF m | 30.06.04 | 31.12.03 | |||
| Banks | 1,396 | 1,254 | |||
| Commercial | 44,303 | 42,811 | |||
| Consumer | 74,008 | 70,932 | |||
| Public authorities | 3,776 | 3,419 | |||
| Lease financings | 3,735 | 3,481 | |||
| Switzerland | 127,218 | 121,897 | |||
| Banks | 7,510 | 7,876 | |||
| Commercial | 31,004 | 31,264 | |||
| Consumer | 20,562 | 19,741 | |||
| Public authorities | 615 | 797 | |||
| Lease financings | 147 | 144 | |||
| Foreign | 59,838 | 59,822 | |||
| Loans, gross | 187,056 | 181,719 | |||
| Deferred expenses, net | 89 | 106 | |||
| Allowance for loan losses | (3,790) | (4,646) | |||
| Total loans, net | 183,355 | 177,179 | |||
| Allowance for loan losses | |||||||||||
| 6 months | |||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Balance beginning of period | 4,189 | 4,646 | 6,875 | 4,646 | 7,427 | ||||||
| New provisions | 319 | 165 | 261 | 484 | 574 | ||||||
| Releases of provisions | (181) | (131) | (147) | (312) | (263) | ||||||
| Net additions charged to income statement | 138 | 34 | 114 | 172 | 311 | ||||||
| Gross write-offs | (556) | (590) | (621) | (1,146) | (1,324) | ||||||
| Recoveries | 20 | 11 | 12 | 31 | 19 | ||||||
| Net write-offs | (536) | (579) | (609) | (1,115) | (1,305) | ||||||
| Allowances acquired | 0 | 0 | 1 | 0 | 0 | ||||||
| Provisions for interest | 11 | 24 | 25 | 35 | 67 | ||||||
| Foreign currency translation impact and other adjustments, net | (12) | 64 | 25 | 52 | (69) | ||||||
| Balance end of period | 3,790 | 4,189 | 6,431 | 3,790 | 6,431 | ||||||
| Provision for credit losses disclosed in the income statement also includes provisions for lending related exposure. | |||||||||||
| Impaired loans | |||||
| in CHF m | 30.06.04 | 31.12.03 | |||
| With a specific allowance | 4,905 | 6,459 | |||
| Without a specific allowance | 840 | 748 | |||
| Total impaired loans, gross | 5,745 | 7,207 | |||
| Restructuring liabilities | |||||||||||||
| 2004 | 2003 | ||||||||||||
| in CHF m | Personnel | Other | Total | Personnel | Other | Total | |||||||
| Balance January 1 | 65 | 27 | 92 | 75 | 51 | 126 | |||||||
| Net additions charged to income statement | 55 | 9 | 64 | 46 | 14 | 60 | |||||||
| Write-offs/recoveries, net | (36) | (10) | (46) | (49) | (26) | (75) | |||||||
| Transfers, foreign exchange | (4) | (1) | (5) | (9) | (9) | (18) | |||||||
| Balance June 30 | 80 | 25 | 105 | 63 | 30 | 93 | |||||||
| Earnings per share | |||||||||||
| 6 months | |||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Income/(loss) from continuing operations before extraordinary items and cumulative effect of accounting changes | 1,504 | 1,932 | (605) | 3,436 | 132 | ||||||
| Income/(loss) from discontinued operations, net of tax | (47) | (65) | 60 | (112) | 127 | ||||||
| Extraordinary items, net of tax | 0 | 0 | 1 | 0 | 5 | ||||||
| Cumulative effect of accounting changes, net of tax | 0 | (6) | (12) | (6) | (541) | ||||||
| Net income/(loss) – as reported | 1,457 | 1,861 | (556) | 3,318 | (277) | ||||||
| Net income/(loss) available for common shares for basic EPS 1) | 1,426 | 1,798 | (556) | 3,224 | (277) | ||||||
| Net income/(loss) available for common shares for diluted EPS 2) | 1,485 | 1,884 | (556) | 3,369 | (277) | ||||||
| Weighted-average common shares outstanding for basic EPS | 1,133,355,373 | 1,154,367,766 | 1,161,109,384 | 1,143,885,745 | 1,156,485,457 | ||||||
| Potential dilutive common shares | |||||||||||
| Contingent issuable shares | 72,061,770 | 65,403,497 | – | 3) | 67,335,818 | – | 3) | ||||
| Incremental shares from assumed conversions | |||||||||||
| Convertible securities | 40,413,838 | 40,413,838 | – | 3) | 40,413,838 | – | 3) | ||||
| Share options | 8,535,264 | 9,730,720 | – | 3) | 9,172,564 | – | 3) | ||||
| Adjusted weighted-average common shares for diluted EPS | 1,254,366,245 | 1,269,915,821 | 1,161,109,384 | 1,260,807,965 | 1,156,485,457 | ||||||
| Basic earnings per share | |||||||||||
| Income/(loss) from continuing operations before extraordinary items and cumulative effect of accounting changes | 1.30 | 1.63 | (0.52) | 2.93 | 0.12 | ||||||
| Income/(loss) from discontinued operations, net of tax | (0.04) | (0.06) | 0.05 | (0.10) | 0.11 | ||||||
| Extraordinary items, net of tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Cumulative effect of accounting changes, net of tax | 0.00 | (0.01) | (0.01) | (0.01) | (0.47) | ||||||
| Net income/(loss) available for common shares | 1.26 | 1.56 | (0.48) | 2.82 | (0.24) | ||||||
| Diluted earnings per share | |||||||||||
| Income/(loss) from continuing operations before extraordinary items and cumulative effect of accounting changes | 1.22 | 1.53 | (0.52) | 2.76 | 0.12 | ||||||
| Income/(loss) from discontinued operations, net of tax | (0.04) | (0.05) | 0.05 | (0.09) | 0.11 | ||||||
| Extraordinary items, net of tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Cumulative effect of accounting changes, net of tax | 0.00 | 0.00 | (0.01) | 0.00 | (0.47) | ||||||
| Net income/(loss) available for common shares | 1.18 | 1.48 | (0.48) | 2.67 | (0.24) | ||||||
| 1) In accordance with EITF 03-6, the basic earnings per share calculation considers the effect of participating securities. Specifically, the allocation of undistributed income related to the mandatory convertible securities is a reduction to the net income available to common shareholders for the purposes of the calculation. The mandatory convertible securities holders are not contractually obligated to participate in the losses of Credit Suisse Group, thus the calculation is not affected in a loss period. | |||||||||||
| 2) Under the if converted method for calculating diluted EPS, the interest on the mandatory convertible securities is included, when the effect is dilutive. | |||||||||||
| 3) For 2Q2003 and 6 months 2003 the computation of the diluted earnings per share excludes the effect of the contingent issuable shares, the potential exchange of convertible securities and the potential exercise of share options, as the effect would be antidilutive. | |||||||||||
| Pension and post-retirement benefits 1) | |||||||||||
| 6 months | |||||||||||
| in CHF m | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| Service costs on benefit obligation | 106 | 119 | 104 | 225 | 209 | ||||||
| Interest costs on benefit obligation | 180 | 181 | 168 | 361 | 337 | ||||||
| Expected return on plan assets | (236) | (235) | (238) | (471) | (477) | ||||||
| Amortisation of | |||||||||||
| Unrecognized transition obligation/(asset) | (1) | (1) | 17 | (2) | 34 | ||||||
| Prior service cost | 9 | 9 | 10 | 18 | 19 | ||||||
| Unrecognized (gains)/losses | 11 | 10 | 9 | 21 | 18 | ||||||
| Net periodic pension costs | 69 | 83 | 70 | 152 | 140 | ||||||
| Settlement (gains)/losses | 2 | 0 | 0 | 2 | (1) | ||||||
| Curtailment (gains)/losses | 1 | 5 | 0 | 6 | 0 | ||||||
| Disposals | 0 | 0 | 0 | 0 | 4 | ||||||
| Termination losses | 2 | 5 | 15 | 7 | 27 | ||||||
| Total pension costs | 74 | 93 | 85 | 167 | 170 | ||||||
| 1) Credit Suisse Group previously disclosed in its financial statements for the year ended December 31, 2003, that it expected to contribute CHF 807 million to the pension plans in 2004. As of June 30, 2004, CHF 603 million of contributions have been made. Credit Suisse Group presently anticipates contributing an additional CHF 197 million to fund its pension plan in 2004 for a total of CHF 800 million. | |||||||||||
| Derivative instruments | |||||||||||||
| Trading | Hedging | ||||||||||||
| Positive | Negative | Positive | Negative | ||||||||||
| Notional | replacement | replacement | Notional | replacement | replacement | ||||||||
| As of June 30, 2004, in CHF bn | amount | value | value | amount | value | value | |||||||
| Interest rate products | 13,967.7 | 146.1 | 141.9 | 60.1 | 2.0 | 0.4 | |||||||
| Foreign exchange products | 1,816.8 | 32.1 | 31.6 | 23.6 | 1.8 | 0.1 | |||||||
| Precious metals products | 13.9 | 0.8 | 2.9 | 0.0 | 0.0 | 0.0 | |||||||
| Equity/index-related products | 530.6 | 16.9 | 21.1 | 0.0 | 0.0 | 0.0 | |||||||
| Other products | 395.6 | 5.4 | 7.4 | 0.2 | 0.0 | 0.0 | |||||||
| Total derivative instruments | 16,724.6 | 201.3 | 204.9 | 83.9 | 3.8 | 0.5 | |||||||
| 30.06.04 | 31.12.03 | ||||||||
| Positive | Negative | Positive | Negative | ||||||
| replacement | replacement | replacement | replacement | ||||||
| in CHF bn | value | value | value | value | |||||
| Replacement values (trading and hedging) before netting | 205.1 | 205.4 | 226.7 | 229.2 | |||||
| Replacement values (trading and hedging) after netting | 50.4 | 50.7 | 56.6 | 59.1 | |||||
| Currency translation rates | |||||||||||||
| Average rate year-to-date | Closing rate | ||||||||||||
| in CHF | 2Q2004 | 1Q2004 | 2Q2003 | 30.06.04 | 31.03.04 | 31.12.03 | |||||||
| 1 USD | 1.27 | 1.25 | 1.35 | 1.2654 | 1.2745 | 1.2357 | |||||||
| 1 EUR | 1.55 | 1.57 | 1.49 | 1.5290 | 1.5590 | 1.5590 | |||||||
| 1 GBP | 2.31 | 2.31 | 2.18 | 2.2852 | 2.3360 | 2.2023 | |||||||
| 100 JPY | 1.17 | 1.17 | 1.14 | 1.1653 | 1.2210 | 1.1556 | |||||||
Financial instruments with off-balance sheet risk
Guarantees
The following table sets forth details of contingent liabilities associated with guarantees:
| Total gross amount | Total net amount 1) | ||||||||
| in CHF m | 30.06.04 | 31.12.03 | 30.06.04 | 31.12.03 | |||||
| Credit guarantees and similar instruments | 10,176 | 10,147 | 8,284 | 8,194 | |||||
| Performance guarantees and similar instruments | 6,285 | 5,540 | 5,432 | 4,841 | |||||
| Securities lending indemnifications | 22,696 | 21,888 | 22,696 | 21,888 | |||||
| Market value guarantees | 313,492 | 216,738 | 313,492 | 216,738 | |||||
| Other guarantees 2) | 4,322 | 2,701 | 4,322 | 2,701 | |||||
| Total guarantees | 356,971 | 257,014 | 354,226 | 254,362 | |||||
| 1) Total net amount relates to gross amount less any participations. | |||||||||
| 2) Contingent considerations in business combinations, loans sold with recourse, residual value guarantees and other indemnifications. | |||||||||
The following table sets forth details of collateral in respect of guarantees:
| Mortgage | Other | Without | Total | ||||||
| As of June 30, 2004, in CHF m | collateral | collateral | collateral | 2004 | |||||
| Credit guarantees and similar instruments | 188 | 2,789 | 5,307 | 8,284 | |||||
| Performance guarantees and similar instruments | 770 | 2,580 | 2,082 | 5,432 | |||||
| Securities lending indemnifications | 0 | 22,696 | 0 | 22,696 | |||||
| Market value guarantees | 0 | 169 | 313,323 | 313,492 | |||||
| Other guarantees | 96 | 2,851 | 1,375 | 4,322 | |||||
| Total guarantees | 1,054 | 31,085 | 322,087 | 354,226 | |||||
| Total gross amount | Total net amount 1) | ||||||||
| in CHF m | 30.06.04 | 31.12.03 | 30.06.04 | 31.12.03 | |||||
| Irrevocable commitments under documentary credits | 3,931 | 3,481 | 3,567 | 3,212 | |||||
| Undrawn irrevocable credit facilities | 75,529 | 70,541 | 75,529 | 70,541 | |||||
| Forward reverse repurchase agreements | 8,939 | 12,537 | 8,939 | 12,537 | |||||
| Other commitments | 2,501 | 2,284 | 2,501 | 2,283 | |||||
| Total other off-balance sheet commitments | 90,900 | 88,843 | 90,536 | 88,573 | |||||
| 1) Total net amount relates to gross amount less any participations. | |||||||||
The following table sets forth details of collateral in respect of other off-balance sheet commitments:
| Mortgage | Other | Without | Total | ||||||
| As of June 30, 2004, in CHF m | collateral | collateral | collateral | 2004 | |||||
| Irrevocable commitments under documentary credits | 5 | 1,292 | 2,270 | 3,567 | |||||
| Undrawn irrevocable credit facilities | 377 | 40,587 | 34,565 | 75,529 | |||||
| Forward reverse repurchase agreements | 0 | 8,939 | 0 | 8,939 | |||||
| Other commitments | 0 | 427 | 2,074 | 2,501 | |||||
| Total other off-balance sheet commitments | 382 | 51,245 | 38,909 | 90,536 | |||||
| in CHF m | 30.06.04 | ||
| Collateralized debt obligations | 53,052 | ||
| Commercial paper conduits | 6,390 | ||
| Financial intermediation | 97,359 | ||
| Total | 156,801 | ||
| The following table summarizes the total assets, by category, related to VIEs consolidated as a result of the Group being the primary beneficiary: |
| in CHF m | 30.06.04 | ||
| Collateralized debt obligations | 1,935 | ||
| Commercial paper conduits | 157 | ||
| Financial intermediation | 6,646 | ||
| Total assets consolidated pursuant to FIN 46R | 8,738 | ||
| Excludes assets and liabilities within VIEs that are wholly-owned within the Group and for which no external interests exist. | |||
| Information for investors | |||||||
| Ticker Symbols / Stock exchange listings | |||||||
| Bloomberg | Reuters | Telekurs | |||||
| SWX Swiss Exchange/virt-x | CSGN VX | CSGN.VX | CSGN,380 | ||||
| New York Stock Exchange (ADS) 1) | CSR US | CSR.N | CSR,065 | ||||
| CSG share | ADS | ||||||
| Swiss security number | 1213853 | 570660 | |||||
| ISIN number | CH0012138530 | US2254011081 | |||||
| CUSIP number | 225 401 108 | ||||||
| 1) 1 ADS represents 1 registered share. | |||||||
| Share data | |||||||
| 30.06.04 | 31.03.04 | 31.12.03 | |||||
| Shares issued | 1,196,905,615 | 1,196,116,998 | 1,195,005,914 | ||||
| Treasury shares | (90,440,621) | (77,118,317) | (64,642,966) | ||||
| Shares outstanding | 1,106,464,994 | 1,118,998,681 | 1,130,362,948 | ||||
| Share price | |||||||||||
| 6 months | |||||||||||
| in CHF | 2Q2004 | 1Q2004 | 2Q2003 | 2004 | 2003 | ||||||
| High (closing price) | 46.40 | 49.50 | 39.30 | 49.50 | 39.30 | ||||||
| Low (closing price) | 42.55 | 42.95 | 23.25 | 42.55 | 20.70 | ||||||
| Ratings | |||||||
| Standard | |||||||
| Moody's | & Poor's | Fitch Ratings | |||||
| Credit Suisse Group | |||||||
| Short term | – | A-1 | F1+ | ||||
| Long term | Aa3 | A | AA- | ||||
| Outlook | Stable | Stable | Negative | ||||
| Credit Suisse | |||||||
| Short term | P-1 | A-1 | F1+ | ||||
| Long term | Aa3 | A+ | AA- | ||||
| Outlook | Stable | Stable | Negative | ||||
| Credit Suisse First Boston | |||||||
| Short term | P-1 | A-1 | F1+ | ||||
| Long term | Aa3 | A+ | AA- | ||||
| Outlook | Stable | Stable | Negative | ||||
| Winterthur | |||||||
| Insurer financial strength | A1 | A | A+ | ||||
| Outlook | Stable | Negative | Stable | ||||
| Financial calendar | |||
| Third quarter results 2004 | Thursday, November 4, 2004 | ||
| Fourth quarter/full-year results 2004 | Thursday, February 17, 2005 | ||
| Annual General Meeting | Friday, April 29, 2005 | ||
|
Enquiries Credit Suisse Group Investor Relations Marc Buchheister Tel. +41 1 333 3169 Fax +41 1 333 2587 Credit Suisse Group Media Relations Karin Rhomberg Hug, Claudia Kraaz Tel. +41 1 333 8844 Fax +41 1 333 8877  In this year’s corporate reports we have chosen to feature a number of individuals whose achievements reflect particular values of the Credit Suisse Group. This report features Neil Washington – CEO of a blue-chip insurance company located in Boston, USA – whose focus and determination have brought outstanding results. Credit Suisse Group Paradeplatz 8 P.O. Box 1 8070 Zurich Switzerland Tel. + 4 1 1 212 1616 Fax + 4 1 1 333 2587 www.credit-suisse.com 5520134 English |
QUARTERLY RESULTS 2004 Q2
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 "Risk Factors" 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 |
| RESULTS OVERVIEW | (1/3) |
 vs |
vs |
|||||||||
| in CHF m | 6M04 | 6M03 | 2Q04 | 2Q03 | ||||||
| Net income | ||||||||||
| Credit Suisse Financial Services | 2,182 | – | 1,070 | – | ||||||
| Credit Suisse First Boston | 1,189 | 49 | % | 430 | 113 | % | ||||
| Corporate Center | (53 | ) | (90 | %) | (43 | ) | (62 | %) | ||
| Credit Suisse Group | 3,318 | – | 1,457 | – | ||||||
| Basic earnings per share (in CHF) | 2.82 | 1.26 | ||||||||
| Return on equity | 19.0 | % | 16.6 | % | ||||||
 |
The best half-year result since 2000 |
|
Good revenue generation across most businesses |
|
Improvement in economic conditions versus prior year |
|
Slide 2 |
| RESULTS OVERVIEW | (2/3) |
| vs |
vs |
|||||||||
| Net income in CHF m | 6M04 | 6M03 | 2Q04 | 2Q03 | ||||||
| Private Banking | 1,346 | 69% | 665 | 66% | ||||||
| Corporate & Retail Banking | 445 | 40% | 256 | 57% | ||||||
| Life & Pensions | 206 | – | 67 | – | ||||||
| Non-Life | 185 | 1% | 82 | (10% | ) | |||||
| Credit Suisse Financial Services | 2,182 | – | 1,070 | – | ||||||
|
Continued solid revenue generation and good growth in net new assets at Private Banking |
|
Strong quarterly result from Corporate & Retail Banking, based on good operational performance and benefiting from gains on interest rate derivatives |
|
Life & Pensions achieved a high level of investment income and lower administration expenses |
|
Non-Life reported improved underwriting result and solid investment income |
|
Slide 3 |
| RESULTS OVERVIEW | (3/3) |
| vs |
vs |
|||||||||
| Net income in CHF m | 6M04 | 6M03 | 2Q04 | 2Q03 | ||||||
| Institutional Securities | 752 | 13% | 129 | (17% | ) | |||||
| Wealth & Asset Management | 437 | 226% | 301 | 540% | ||||||
| Credit Suisse First Boston | 1,189 | 49% | 430 | 113% | ||||||
|
Weaker results in Institutional Securities with lower revenues in a challenging trading environment |
|
Strong results in Wealth & Asset Management on private equity gains and steady asset management fees |
|
Slide 4 |
CREDIT SUISSE GROUP
OVERALL STRATEGIC OBJECTIVES
|
“One Group” | |
 |
Clear management structure | |
|
Strengthen Corporate Center | |
|
Increase cooperation between banking units | |
|
Explore options for Winterthur | |
|
Further increase client focus and accountability | |
|
Capitalize on the Group’s great franchises | |
|
Focus on organic growth – selected acquisitions possible | |
|
Build on turnaround at CSFB | |
|
Slide 5 |
CREDIT SUISSE FIRST BOSTON
STATUS QUO AND STRATEGIC FOCUS
|
Brady Dougan appointed CEO | ||
|
Senior management team in place | ||
|
Very strong core franchise | ||
|
Leading businesses include leveraged finance, mortgages / asset-backed products, private equity, mid-cap M&A | ||
|
Strong teams in energy and technology banking, equity derivatives | ||
|
Creation of Alternative Capital Division | ||
|
Committed management team to address performance gaps versus our peers | ||
|
Strategic focus on generating revenue growth that outpaces market growth | ||
| |
Leverage existing franchises | ||
|
Close gaps in core business areas | ||
|
Enter new areas | ||
|
Evaluate businesses and costs for ways to improve profitability | ||
|
Slide 6 |
CREDIT SUISSE GROUP
OUTLOOK
|
Group is confident that it can achieve further improvements in its results | |
|
Progress in a number of its core businesses | |
|
Solid pipeline of mandates and products | |
|
However, the Group’s results are dependent on economic and market conditions and their impact on client activity and transaction volumes | |
|
Additionally, the Group is subject to continued cost pressure, particularly in its investment banking business | |
|
Going forward, Credit Suisse Group is committed to achieving continued progress in its performance relative to peers | |
|
Investor Day to be scheduled for December 2004 | |
|
Slide 7 |
FINANCIAL REVIEW 2004 Q2
|
Slide 8 |
REVENUES
| Private Banking and | Credit Suisse | Life & Pensions and | ||
| Corporate & Retail Banking | First Boston | Non-Life | ||
 |
 |
 |
| * | Excluding minority interest revenues relating to the FIN 46R consolidation amounting to CHF 515 m and CHF 108 m in 2Q04 and 1Q04, respectively |
|
Slide 9 |
OPERATING EXPENSES
| in CHF bn | Consolidated total operating expenses |
| 81% | 75% | 79% | 70% | 74% | Cost/income ratio 1) |
 |
Other expenses 2) Insurance underwriting, acquisition and administration expenses Banking compensation and benefits |
| 1) | Excluding results from Life & Pensions and Non-Life and excluding minority interest revenues relating to the FIN 46R consolidation amounting to CHF 515 m and CHF 108 m in 2Q04 and 1Q04, respectively |
| 2) | Including restructuring charges |
|
Slide 10 |
CONTINUED FAVORABLE CREDIT TRENDS
| in CHF m | Provision for credit losses |
 |
||||
 |
Credit Suisse Financial Services | |||
 |
Credit Suisse First Boston | |||
 |
Corporate Center | |||
|
Slide 11 |
IMPROVING LOAN BOOK
| in CHF bn | Impaired loans | in % | Coverage ratio | |
 |
 |
|||
 |
Credit Suisse First Boston |
 |
Credit Suisse Financial Services |
|
||
|
Slide 12 |
CAPITAL RATIOS
| in CHF bn | Risk-weighted assets 1) | in % | BIS tier 1 ratio 1) | |
 |
 |
|||
|
Credit Suisse First Boston |
|
Credit Suisse |
|
||
| 1) Information prior to 2004 prepared on the basis of Swiss GAAP |
|
Slide 13 |
PRIVATE BANKING
MAINTAINED NET REVENUES ON A HIGH LEVEL
| in CHF m | Revenues & expenses | in % | Cost/income ratio | |
 |
 |
|||
 |
All other revenues |
 |
Operating expenses |
|
|||
 |
Commissions and fees | ||||||
|
Slide 14 |
PRIVATE BANKING
HIGH GROSS MARGIN, LOWER BROKERAGE ACTIVITY
| in bp | Gross margin 1) | Key driver | ||
 |
|
Higher gains from interest rate derivatives | ||
|
High volume of issued products | |||
|
Lower level of brokerage activity | |||
|
Continued favorable product mix | |||
 |
Asset-driven
|
 |
Transaction-driven |
 |
Other |
|
|||||
| 1) Prior periods adjusted to conform with current presentation | |||||||||||
|
Slide 15 |
PRIVATE BANKING
GOOD GROWTH IN NET NEW ASSETS
| in CHF bn | Net new assets | in CHF bn | Assets under management | |
| Annua- | ||||||||||
| lized | 3.2 | 6.8 | 3.4 | 8.4 | 5.8 | |||||
| in % |
 |
 |
|
Slide 16 |
CORPORATE & RETAIL BANKING
HIGH REVENUES
| in CHF m | Revenues & expenses | in % | Cost/income ratio | |
| Market gains/(losses) from interest rate derivatives: | ||||||
| 3 | (31) | 136 | ||||
 |
 |
 |
Revenues |
 |
Operating expenses |
|
||
|
Slide 17 |
LIFE & PENSIONS
GOOD OPERATING PERFORMANCE
| in CHF m | Total business volume | in CHF m | Underwriting, acquisition and administration expenses | |
 |
 |
|
Slide 18 |
LIFE & PENSIONS
HIGHER INVESTMENT INCOME
| Net investment income | Dividends to | |||
| traditional life policies | Net investment return | policyholders incurred | ||
 |
 |
 |
 |
Net current income |
 |
Realized gains/(losses) |
|
||
|
Slide 19 |
NON-LIFE
TARIFF-DRIVEN GROWTH AND
LOWER COMBINED
RATIO
| Underwriting, acquisition and | ||||
| Net premiums earned | Combined ratio | administration expenses | ||
 |
 |
 |
|
Slide 20 |
NON-LIFE
HIGHER INVESTMENT INCOME
| in CHF m | Net investment income | in % | Net investment return | |
 |
 |
|||
 |
Net current investment income |  |
Realized gains/(losses) | ||||
|
Slide 21 |
CREDIT SUISSE FIRST BOSTON
STRONG ASSET MANAGEMENT RESULTS
| vs |
vs |
|||||||
| in CHF m | 2Q04 | 1Q04 | 2Q03 | |||||
| Net revenues 1) | 4,118 | (13) | % | 4 | % | |||
| Total operating expenses | 3,494 | (6) | % | 1 | % | |||
| Net income | 430 | (43) | % | 113 | % | |||
| of which Institutional Securities | 129 | (79) | % | (17) | % | |||
| of which Wealth & Asset Management | 301 | 121 | % | 540 | % | |||
| |
Strong private equity investment gains and steady asset management fees in Wealth & Asset Management |
| |
Weaker results in Institutional Securities with lower revenues in more challenging trading environment |
| |
Expenses below 1Q04 with lower compensation costs in line with underlying revenues offset by higher commission and activity-related costs |
| 1) | Excluding minority interest revenues relating to the FIN 46R consolidation amounting to CHF 515 m and CHF 108 m in 2Q04 and 1Q04, respectively |
|
Slide 22 |
CREDIT SUISSE FIRST BOSTON
WEAKER REVENUES AFFECT PROFITABILITY
| in % | Pre-tax margin 1) | in % | Return on average allocated capital | |
 |
 |
|||
| 1) | Excluding minority interest revenues relating to the FIN 46R consolidation amounting to CHF 515 m and CHF 108 m in 2Q04 and 1Q04, respectively |
|
Slide 23 |
CONSOLIDATION OF CERTAIN PRIVATE
EQUITY
AND OTHER FUNDS UNDER FIN 46R1)
|
Under FIN 46R1), CSFB is required to consolidate certain private equity and other funds as of January 1, 2004 | |
| |
Consolidation does not impact net income as the increase in revenues is offset by an equivalent amount in minority interests | |
| |
CHF 515 m and CHF 108 m of revenues and minority interests reported in 2Q04 and 1Q04, respectively | |
|
Effect is unique to CSFB | |
|
Needs to be excluded when calculating key operating ratios | |
|
Private equity is core to CSFB | |
|
Leading position | |
|
Over the investment cycle, provides significant revenues in the form of investment related gains | |
| 1) | Financial Accounting Standard Board Interpretation No. 46 Revised | |
|
Slide 24 |
INSTITUTIONAL SECURITIES
MORE CHALLENGING TRADING ENVIRONMENT
| in CHF m | Fixed Income trading revenues | in CHF m | Equity trading revenues | |
 |
 |
|||
|
Slide
25 |
INSTITUTIONAL SECURITIES
CLIENT ACTIVITY DRIVING INVESTMENT BANKING RESULTS
| in CHF m | Investment Banking revenues |
 |
Equity underwriting
Debt underwriting
Advisory
|
|
Slide
26 |
WEALTH & ASSET MANAGEMENT
STRONG GAINS ON PRIVATE EQUITY INVESTMENTS
| in CHF m | Revenues by division 1) |
 |
Investment related gains & Other
Private Client Services
Credit Suisse Asset Management
|
| 1) | Excluding minority interest revenues relating to the FIN 46R consolidation amounting to CHF 462 m and CHF 68 m in 2Q04 and 1Q04, respectively |
| 2) | Excludes CHF 134 m related to gain on sale of CSFBdirect Japan joint venture reported in Other |
|
Slide 27 |
WEALTH & ASSET MANAGEMENT
IMPROVED NET NEW ASSETS
| in CHF bn | Net new assets | in CHF bn | Assets under management | |
 |
 |
|||
 |
Credit Suisse Asset Management Traditional |
 |
Alternative Capital Division |  |
Private Client
|
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Slide 28 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CREDIT SUISSE GROUP (Registrant) |
|||
| Date August 4, 2004 | By: | /s/ David Frick | |
| (Signature)* | |||
| *Print the name and title of the signing officer under his signature | Head of Group Legal & Compliance | ||
| /s/ Karin Rhomberg Hug | |||
| Head of Group Communications |