UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
November 21, 2018
Commission File Number 001-15244
CREDIT SUISSE GROUP AG
(Translation of registrant’s name into English)
Paradeplatz 8, CH 8001 Zurich, Switzerland
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or
Form 40-F.
   Form 20-F      Form 40-F   
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 the registrant by furnishing the information contained in this Form 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-.





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 AG
 (Registrant)
 
 
Date: November 21, 2018
By:
/s/ Joachim Oechslin
Joachim Oechslin
Chief Risk Officer
By:
/s/ David R. Mathers
David R. Mathers
Chief Financial Officer










For purposes of this report, unless the context otherwise requires, the terms “Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group AG and its consolidated subsidiaries. The business of Credit Suisse AG, the direct bank subsidiary of the Group, is substantially similar to the Group, and we use these terms to refer to both when the subject is the same or substantially similar. We use the term “the Bank” when we are only referring to Credit Suisse AG and its consolidated subsidiaries.
Abbreviations are explained in the List of abbreviations in the back of this report.
Publications referenced in this report, whether via website links or otherwise, are not incorporated into this report.
In various tables, use of “–” indicates not meaningful or not applicable.
Rounding differences may occur within the tables.





Pillar 3 and regulatory disclosures 3Q18
Credit Suisse Group AG

Introduction
Risk-weighted assets
Reconciliation requirements
Additional regulatory disclosures
List of abbreviations
Cautionary statement regarding forward-looking information





Introduction
General
This report as of September 30, 2018 for the Group is based on the Circular 2016/1 “Disclosure – banks” (FINMA circular) issued by the Swiss Financial Market Supervisory Authority FINMA (FINMA). The FINMA circular includes the implementation of the Pillar 3 disclosure requirements issued by the Basel Committee on Banking Supervision (BCBS) in January 2015. This document should be read in conjunction with the Pillar 3 and regulatory disclosures – Credit Suisse Group AG 4Q17, the Pillar 3 and regulatory disclosures – Credit Suisse Group AG 2Q18, the Credit Suisse Annual Report 2017 and the Credit Suisse Financial Report 3Q18, which includes important information on regulatory capital and risk management (specific references have been made herein to these documents) and regulatory developments and proposals.
The highest consolidated entity in the Group to which the FINMA circular applies is Credit Suisse Group.
This report is produced and published quarterly, in accordance with FINMA requirements. The reporting frequency for each disclosure requirement is either annual, semi-annual or quarterly.
These disclosures were verified and approved internally in line with our board-approved policy on disclosure controls and procedures. The level of internal control processes for these disclosures is similar to those applied to the Group’s quarterly and annual financial reports. This report has not been audited by the Group’s external auditors.
> Refer to “Pillar 3 and regulatory disclosures – Credit Suisse Group AG 4Q17” under credit-suisse.com/regulatorydisclosures for the annual qualitative disclosures required by the FINMA circular.
For certain prescribed table formats where line items have zero balances, such line items have not been presented.
Other regulatory disclosures
In connection with the implementation of Basel III, certain regulatory disclosures for the Group and certain of its subsidiaries are required. The Group’s Pillar 3 disclosure, regulatory disclosures, additional information on capital instruments, including the main features and terms and conditions of regulatory capital instruments that form part of the eligible capital base, G-SIB financial indicators, reconciliation requirements, leverage ratios and certain liquidity disclosures as well as regulatory disclosures for subsidiaries can be found on our website.
> Refer to credit-suisse.com/regulatorydisclosures for additional information.
Regulatory developments
On July 16, 2018, FINMA issued a revised Circular 2016/1 “Disclosure – banks” (revised FINMA circular), which included the implementation of the revised Pillar 3 disclosure requirements issued by the BCBS in March 2017. The revised FINMA circular requires banks to gradually implement the new requirements from December 31, 2018 onwards.
On October 31, 2018, FINMA informed the Group on updated rebates for resolvability of 1.424% relating to the capital ratio, resulting in a gone concern requirement of 7.476%, and 0.48% relating to the leverage ratio, resulting in a gone concern leverage requirement of 2.52%, applicable retrospectively as of July 1, 2018.
2
Risk-weighted assets
Overview
The following table provides an overview of total risk-weighted assets (RWA) forming the denominator of the risk-based capital requirements.
OV1 – Overview of risk-weighted assets and capital requirements 
     
Risk-weighted assets		 Capital
requirement		 1
end of 3Q18 2Q18 4Q17 3Q18
CHF million   
Credit risk (excluding counterparty credit risk) 132,355 130,261 121,706 10,589
   of which standardized approach (SA)  13,519 12,878 10,511 1,082
   of which internal rating-based (IRB) approach  118,836 117,383 111,195 9,507
Counterparty credit risk 23,502 24,512 24,664 1,880
   of which standardized approach for counterparty credit risk (SA-CCR) 2 5,126 5,161 5,492 410
   of which internal model method (IMM) 3 18,376 19,351 19,172 1,470
      of which derivatives and SFTs  14,323 14,951 14,983 1,146
Equity positions in the banking book 7,567 7,817 8,218 605
Settlement risk 241 417 150 19
Securitization exposures in the banking book 11,951 10,775 10,731 4 956
   of which securitization internal ratings-based approach (SEC-IRBA)  6,664 5,704 – 533
   of which securitization external ratings-based approach (SEC-ERBA), including internal assessment approach (IAA)  1,752 1,725 – 140
   of which securitization standardized approach (SEC-SA)  3,535 3,346 – 283
Amounts below the thresholds for deduction (subject to 250% risk weight) 11,101 11,216 11,043 888
Total credit risk  186,717 184,998 176,512 14,937
Total market risk  17,878 19,565 21,290 1,431
   of which standardized approach (SA)  2,345 2,490 3,765 188
   of which internal model approach (IMA)  15,533 17,075 17,525 1,243
Total operational risk  72,012 72,562 75,013 5,761
   of which advanced measurement approach (AMA)  72,012 72,562 75,013 5,761
Floor adjustment 5 0 0 0 0
Total  276,607 277,125 272,815 22,129
1
Calculated as 8% of risk-weighted assets based on BIS total capital minimum requirements excluding capital conservation buffer and G-SIB buffer requirements.
2
Calculated under the current exposure method.
3
Includes RWA relating to advanced credit valuation adjustment and central counterparties of CHF 6,582 million, CHF 6,972 million and CHF 7,177 million as of the end of 3Q18, 2Q18 and 4Q17, respectively.
4
In January 2018, a new securitization framework was implemented and will be phased in over 2018. The 4Q17 number was calculated in accordance with the previous methodology.
5
Credit Suisse is not subject to a floor adjustment because current capital requirements and deductions exceed 80% of those under Basel I.
RWA movements in 3Q18
RWA of CHF 276.6 billion as of the end of 3Q18 were stable compared to the end of 2Q18, reflecting a negative foreign exchange impact, decreases resulting from movements in risk levels in market risk and operational risk, as well as model and parameter updates in market risk. These decreases were offset by increases mainly resulting from movements in risk levels and methodology and policy changes, both in credit risk.
RWA flow statements for credit risk, counterparty credit risk (CCR) and market risk are presented below.
> Refer to “Risk-weighted assets” (pages 61 to 62) in II – Treasury, risk, balance sheet and off-balance sheet – Capital Management in the Credit Suisse Financial Report 3Q18 for further information on movements in risk-weighted assets in 3Q18.
3
Risk-weighted assets flow statements
Credit risk and counterparty credit risk
The following table presents the definitions of the RWA flow statements components for credit risk and CCR.
Definition of risk-weighted assets movement components related to credit risk and CCR
Description Definition
Asset size  Represents changes arising in the ordinary course of business (including new businesses)
Asset quality/Credit quality of counterparties  Represents changes in average risk weighting across credit risk classes
Model and parameter updates   Represents movements arising from updates to models and recalibrations of parameters and
internal changes impacting how exposures are treated
Methodology and policy changes   Represents movements due to methodology changes in calculations driven by regulatory policy
changes, including both revisions to existing regulations and new regulations
Acquisitions and disposals  Represents changes in book sizes due to acquisitions and disposals of entities
Foreign exchange impact  Represents changes in exchange rates of the transaction currencies compared to the Swiss franc
Other  Represents changes that cannot be attributed to any other category
Credit risk RWA movements in 3Q18
The following table presents the 3Q18 flow statement explaining the variations in the credit risk RWA determined under an IRB approach.
CR8 – Risk-weighted assets flow statements of credit risk exposures under IRB
3Q18 RWA
CHF million   
Risk-weighted assets at beginning of period  117,383
Asset size 996
Asset quality (33)
Model and parameter updates 774
Methodology and policy changes 1,507
Foreign exchange impact (1,791)
Risk-weighted assets at end of period  118,836
Credit risk RWA under IRB increased CHF 1.5 billion to CHF 118.8 billion as of the end of 3Q18 compared to CHF 117.4 billion as of the end of 2Q18, primarily driven by increases resulting from methodology and policy changes and increases related to asset size, partially offset by a foreign exchange impact.
The increase in methodology and policy changes primarily reflected an additional phase-in of the multiplier on income producing real estate (IPRE) and non-IPRE exposures, an additional phase-in for the implementation of Basel III revised rules for banking book securitizations and an additional phase-in of a multiplier on certain investment banking corporate exposures. The increase related to asset size was mainly due to increases in lending exposures.
Counterparty credit risk RWA movements in 3Q18
The following table presents the 3Q18 flow statement explaining changes in CCR RWA determined under the Internal Model Method (IMM) for CCR (derivatives and SFTs).
CCR7 – Risk-weighted assets flow statements of CCR exposures under IMM
3Q18 RWA
CHF million   
Risk-weighted assets at beginning of period  14,951
Asset size 398
Credit quality of counterparties (9)
Model and parameter updates (827)
Methodology and policy changes 58
Foreign exchange impact (248)
Risk-weighted assets at end of period  14,323
CCR RWA under IMM of CHF 14.3 billion decreased 4% compared to the end of 2Q18, primarily due to decreases related to model updates mainly reflecting a change in the EEPE calculation.
4
Market risk
The following table presents the definitions of the RWA flow statements components for market risk.
Definitions of risk-weighted assets movement components related to market risk
Description Definition
RWA as of the end of the previous and current reporting periods  Represents RWA at quarter-end
Regulatory adjustment  Indicates the difference between RWA and RWA (end of day) at beginning and end of period
RWA as of the previous and current quarters end (end of day)    For a given component (e.g. VaR) it refers to the RWA that would be computed if the snapshot
quarter end figure of the component determines the quarter end RWA, as opposed to a 60-day
average for regulatory
Movement in risk levels  Represents movements due to position changes
Model and parameter updates   Represents movements arising from updates to models and recalibrations of parameters and
internal changes impacting how exposures are treated
Methodology and policy changes   Represents movements due to methodology changes in calculations driven by regulatory policy
changes, including both revisions to existing regulations and new regulations
Acquisitions and disposals  Represents changes in book sizes due to acquisitions and disposals of entities
Foreign exchange impact  Represents changes in exchange rates of the transaction currencies compared to the Swiss franc
Other  Represents changes that cannot be attributed to any other category
Market risk RWA movements in 3Q18
The following table presents the 3Q18 flow statement explaining variations in the market risk RWA determined under an internal model approach (IMA).
MR2 – Risk-weighted assets flow statements of market risk exposures under an IMA

3Q18		 Regulatory
VaR		 Stressed
VaR
IRC
Other		 1
Total RWA
CHF million   
Risk-weighted assets at beginning of period  2,628 5,033 1,989 7,425 17,075
Regulatory adjustment 477 1,350 (628) (262) 937
Risk-weighted assets at beginning of period (end of day)  3,105 6,383 1,361 7,163 18,012
Movement in risk levels (987) 116 (560) (409) (1,840)
Model and parameter updates 119 30 5 (608) (454)
Foreign exchange impact (63) (125) (28) (184) (400)
Risk-weighted assets at end of period (end of day)  2,174 6,404 778 5,962 15,318
Regulatory adjustment (233) (1,642) 1,615 475 215
Risk-weighted assets at end of period  1,941 4,762 2,393 6,437 15,533
1
Risks not in VaR.
Market risk RWA under an IMA of CHF 15.5 billion decreased 9% compared to the end of 2Q18, primarily due to the reduction in regulatory value-at-risk (VaR) and Risks not in VaR, driven by movements in risk levels.
5
Reconciliation requirements
Balance sheet
The following table shows the balance sheet as published in the consolidated financial statements of the Group and the balance sheet under the regulatory scope of consolidation. The reference indicates how such assets and liabilities are considered in the composition of regulatory capital.
> Refer to “Principles of consolidation” (page 8) in Linkages between financial statements and regulatory disclosures – Differences between accounting and regulatory scopes of consolidation in the Pillar 3 and regulatory disclosures – Credit Suisse Group AG 4Q17 for information on key differences between the accounting and the regulatory scope of consolidation.
> Refer to “Note 3 – Business developments and subsequent events” (page 99) in the Credit Suisse Financial Report 3Q18 for information on changes in the scope of consolidation.
> Refer to “Note 39 – Significant subsidiaries and equity method investments” (pages 383 to 385) in the Credit Suisse Annual Report 2017 for a list of significant subsidiaries and associated entities.
Balance sheet
   Balance sheet

end of 3Q18
Financial
statements		 Regulatory
scope of
consolidation		 Reference to
composition
of capital
Assets (CHF million)   
Cash and due from banks 94,945 94,714
Interest-bearing deposits with banks 1,236 1,592
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions 117,010 113,827
Securities received as collateral, at fair value 47,010 47,010
Trading assets, at fair value 127,182 121,812
Investment securities 2,837 2,406
Other investments 5,011 4,983
Net loans 284,511 285,235
Premises and equipment 4,825 4,891
Goodwill 4,736 4,741 a
Other intangible assets 214 214
   of which other intangible assets (excluding mortgage servicing rights)  58 58 b
Brokerage receivables 48,282 48,282
Other assets 30,745 29,895
   of which deferred tax assets related to net operating losses  1,809 1,809 c
   of which deferred tax assets from temporary differences  3,306 2,847 d
   of which defined-benefit pension fund net assets  2,605 2,605 e
Total assets  768,544 759,602
6
Balance sheet (continued)
   Balance sheet

end of 3Q18
Financial
statements		 Regulatory
scope of
consolidation		 Reference to
composition
of capital
Liabilities and equity (CHF million)   
Due to banks 16,725 17,382
Customer deposits 349,818 349,999
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions 18,442 18,444
Obligation to return securities received as collateral, at fair value 47,010 47,010
Trading liabilities, at fair value 43,328 43,373
Short-term borrowings 17,488 14,528
Long-term debt 164,087 163,043
Brokerage payables 39,904 39,904
Other liabilities 28,808 22,994
Total liabilities  725,610 716,677
   of which additional tier 1 instruments, fully eligible  10,311 10,311 g
   of which additional tier 1 instruments subject to phase-out  1,953 1,953 h
   of which tier 2 instruments, fully eligible  3,954 3,954 i
   of which tier 2 instruments subject to phase-out  2,388 2,388 j
Common shares 102 102
Additional paid-in capital 34,785 34,785
Retained earnings 26,714 26,682
Treasury shares, at cost (59) (57)
Accumulated other comprehensive income/(loss) (18,808) (18,779)
Total shareholders' equity 1 42,734 42,733
Noncontrolling interests 2 200 192
Total equity  42,934 42,925
Total liabilities and equity  768,544 759,602
1
Eligible as CET1 capital, prior to regulatory adjustments.
2
The difference between the accounting and regulatory scope of consolidation primarily represents private equity and other fund type vehicles, which FINMA does not require to consolidate for capital adequacy reporting.
7
Composition of BIS regulatory capital
The following tables provide details on the composition of Bank for International Settlements (BIS) regulatory capital and details on common equity tier 1 (CET1) capital adjustments subject to phase-in as well as details on additional tier 1 capital and tier 2 capital.
Composition of BIS regulatory capital
end of 3Q18
Eligible capital (CHF million)         
Total shareholders' equity (US GAAP)  42,734
Regulatory adjustments (450) 1
Adjustments subject to phase-in (6,727) 2
CET1 capital  35,557
Additional tier 1 instruments 9,910 3
Additional tier 1 instruments subject to phase-out 1,953 4
Additional tier 1 capital  11,863
Tier 1 capital  47,420
Tier 2 instruments 3,464 5
Tier 2 instruments subject to phase-out 779
Tier 2 capital  4,243
Total eligible capital  51,663
1
Includes regulatory adjustments not subject to phase-in, including a cumulative dividend accrual.
2
Reflects 100% phase-in deductions, including goodwill, other intangible assets and certain deferred tax assets.
3
Consists of high-trigger and low-trigger capital instruments. Of this amount, CHF 5.5 billion consists of capital instruments with a capital ratio write-down trigger of 7% and CHF 4.4 billion consists of capital instruments with a capital ratio write-down trigger of 5.125%.
4
Includes hybrid capital instruments that are subject to phase-out.
5
Consists of low-trigger capital instruments with a capital ratio write-down trigger of 5%.
8
The following tables provide details on CET1 capital adjustments subject to phase-in and details on additional tier 1 capital and tier 2 capital. The column “Transition amount” represents the amounts that have been recognized in eligible capital as of September 30, 2018.
Details on CET1 capital adjustments subject to phase-in

end of 3Q18
Balance
sheet		 Reference
to balance
sheet		 1
Regulatory
adjustments

Total
Transition
amount		 2
CET1 capital adjustments subject to phase-in (CHF million)   
Goodwill 4,741 a (7) 3 4,734 (4,734)
Other intangible assets (excluding mortgage-servicing rights) 58 b (5) 4 53 (53)
Deferred tax assets that rely on future profitability (excluding temporary differences) 1,809 c – 1,809 (1,809)
Shortfall of provisions to expected losses – 415 415 (415)
(Gains)/losses due to changes in own credit on fair-valued liabilities – (2,236) (2,236) 2,236
Defined-benefit pension assets 2,605 e (589) 4 2,016 (2,016)
Investments in own shares – – – (41)
Other adjustments 5 – – – 105
Amounts above 10% threshold 2,847 (2,847) 0 0
   of which deferred tax assets from temporary differences  2,847 d (2,847) 6 0 0
Adjustments subject to phase-in to CET1 capital  (6,727)
Rounding differences may occur.
1
Refer to the balance sheet under regulatory scope of consolidation in the table "Balance sheet". Only material items are referenced to the balance sheet.
2
Reflects 100% phase-in deductions, including goodwill, other intangible assets and certain deferred tax assets.
3
Represents related deferred tax liability and goodwill on equity method investments.
4
Represents related deferred tax liability.
5
Includes cash flow hedge reserve.
6
Includes threshold adjustments of CHF (3,520) million and an aggregate of CHF 673 million related to the add-back of deferred tax liabilities on goodwill, other intangible assets, mortgage servicing rights and pension assets that are netted against deferred tax assets under US GAAP.
Details on additional tier 1 capital and tier 2 capital

end of 3Q18
Balance
sheet		 Reference
to balance
sheet		 1
Regulatory
adjustments

Total
Transition
amount
Additional tier 1 capital (CHF million)   
Additional tier 1 instruments 2 10,311 g (401) 3 9,910 9,910
Additional tier 1 instruments subject to phase-out 2 1,953 h – 1,953 1,953
Total additional tier 1 instruments  11,863
Tier 2 capital (CHF million)   
Tier 2 instruments 3,954 i (490) 3,464 3,464
Tier 2 instruments subject to phase-out 2,388 j (1,609) 4 779 779
Tier 2 capital  4,243
1
Refer to the balance sheet under regulatory scope of consolidation in the table "Balance sheet". Only material items are referenced to the balance sheet.
2
Classified as liabilities under US GAAP.
3
Includes the reversal of (gains)/losses due to changes in own credit spreads on fair valued capital instruments.
4
Primarily includes the impact of the prescribed amortization requirements as instruments move closer to their maturity.
9
Additional information
end of 3Q18
Amounts below the thresholds for deduction (before risk weighting) (CHF million)      
Non-significant investments in BFI entities  3,176 
   Significant investments in BFI entities  790
   Mortgage servicing rights  131 1
   Deferred tax assets arising from temporary differences  3,520 1
Applicable caps on the inclusion of provisions in tier 2 (CHF million)      
Cap on inclusion of provisions in tier 2 under standardized approach 96
Cap for inclusion of provisions in tier 2 under internal ratings-based approach 845
1
Net of related deferred tax liability.
10
Additional regulatory disclosures
Swiss capital requirements
The FINMA circular requires certain additional disclosures for systemically relevant financial institutions and stand-alone banks. The following tables show the capital requirements based on capital ratios and leverage ratio.
> Refer to “Swiss requirements” (pages 56 to 58) in II – Treasury, risk, balance sheet and off-balance sheet in the Credit Suisse Financial Report 3Q18 for further information on Swiss capital requirements.
Swiss capital requirements and metrics
   Phase-in Look-through

end of 3Q18
CHF million		 in %
of RWA
CHF million		 in %
of RWA
Swiss risk-weighted assets                           
Swiss risk-weighted assets 277,196 – 277,196 –
Risk-based capital requirements (going-concern) based on Swiss capital ratios                           
Total 36,318 13.102 40,310 14.542
   of which CET1: minimum  14,969 5.4 12,474 4.5
   of which CET1: buffer  11,254 4.06 15,246 5.5
   of which CET1: countercyclical buffers  671 0.242 671 0.242
   of which additional tier 1: minimum  7,207 2.6 9,702 3.5
   of which additional tier 1: buffer  2,218 0.8 2,218 0.8
Swiss eligible capital (going-concern)                           
Swiss CET1 capital and additional tier 1 capital 1 48,828 17.6 45,364 16.4
   of which CET1 capital 2 35,454 12.8 35,454 12.8
   of which additional tier 1 high-trigger capital instruments  5,467 2.0 5,467 2.0
   of which additional tier 1 low-trigger capital instruments 3 4,443 1.6 4,443 1.6
   of which tier 2 low-trigger capital instruments 4 3,464 1.2 0 0.0
Risk-based requirement for additional total loss-absorbing capacity (gone-concern) based on Swiss capital ratios                           
Total 20,723 5 7.476 5 31,565 11.387
Eligible additional total loss-absorbing capacity (gone-concern)                           
Total 37,746 6 13.6 37,762 13.6
   of which bail-in instruments  33,803 12.2 33,803 12.2
Rounding differences may occur.
1
Excludes tier 1 capital which is used to fulfill gone-concern requirements.
2
Excludes CET1 capital which is used to fulfill gone-concern requirements.
3
If issued before July 1, 2016, such capital instruments qualify as additional tier 1 high-trigger capital instruments until their first call date according to the transitional Swiss "Too Big to Fail" rules.
4
If issued before July 1, 2016, such capital instruments qualify as additional tier 1 high-trigger capital instruments no later than December 31, 2019 according to the transitional Swiss "Too Big to Fail" rules.
5
The total loss-absorbing capacity (gone concern) requirement of 8.9% was reduced by 1.424%, or CHF 3,947 million, reflecting a rebate for resolvability in accordance with article 133 of the CAO.
6
Includes CHF 3,943 million of capital instruments (additional tier 1 instruments subject to phase-out, tier 2 instruments subject to phase-out, tier 2 amortization component and certain deductions) which, under the phase-in rules, continue to count as gone concern capital.
11
Swiss leverage requirements and metrics
   Phase-in Look-through

end of 3Q18
CHF million		 in %
of LRD
CHF million		 in %
of LRD
Leverage exposure                           
Leverage ratio denominator 884,952 – 884,952 –
Unweighted capital requirements (going-concern) based on Swiss leverage ratio                           
Total 35,398 4.0 44,248 5.0
   of which CET1: minimum  16,814 1.9 13,274 1.5
   of which CET1: buffer  8,850 1.0 17,699 2.0
   of which additional tier 1: minimum  9,734 1.1 13,274 1.5
Swiss eligible capital (going-concern)                           
Swiss CET1 capital and additional tier 1 capital 1 48,828 5.5 45,364 5.1
   of which CET1 capital 2 35,454 4.0 35,454 4.0
   of which additional tier 1 high-trigger capital instruments  5,467 0.6 5,467 0.6
   of which additional tier 1 low-trigger capital instruments 3 4,443 0.5 4,443 0.5
   of which tier 2 low-trigger capital instruments 4 3,464 0.4 0 0.0
Unweighted requirements for additional total loss-absorbing capacity (gone-concern) based on Swiss leverage ratio                           
Total 22,301 5 2.52 5 35,436 4.004
Eligible additional total loss-absorbing capacity (gone-concern)                           
Total 37,746 6 4.3 37,762 4.3
   of which bail-in instruments  33,803 3.8 33,803 3.8
Rounding differences may occur.
1
Excludes tier 1 capital which is used to fulfill gone-concern requirements.
2
Excludes CET1 capital which is used to fulfill gone-concern requirements.
3
If issued before July 1, 2016, such capital instruments qualify as additional tier 1 high-trigger capital instruments until their first call date according to the transitional Swiss "Too Big to Fail" rules.
4
If issued before July 1, 2016, such capital instruments qualify as additional tier 1 high-trigger capital instruments no later than December 31, 2019 according to the transitional Swiss "Too Big to Fail" rules.
5
The total loss-absorbing capacity (gone concern) requirement of 3.0% was reduced by 0.48%, or CHF 4,248 million, reflecting a rebate for resolvability in accordance with article 133 of the CAO.
6
Includes CHF 3,943 million of capital instruments (additional tier 1 instruments subject to phase-out, tier 2 instruments subject to phase-out, tier 2 amortization component and certain deductions) which, under the phase-in rules, continue to count as gone concern capital.
12
Leverage metrics
Beginning in 1Q15, Credit Suisse adopted the BIS leverage ratio framework, as issued by the BCBS and implemented in Switzerland by FINMA.
> Refer to “Leverage metrics” (page 131) in III – Treasury, Risk, Balance sheet and Off-balance sheet – Capital management in the Credit Suisse Annual Report 2017 and “Leverage metrics” (page 63) in II – Treasury, risk, balance sheet and off-balance sheet in the Credit Suisse Financial Report 3Q18 for further information on leverage metrics.
Reconciliation of consolidated assets to leverage exposure – Phase-in
end of 3Q18
Reconciliation of consolidated assets to leverage exposure (CHF million)   
Total consolidated assets as per published financial statements 768,544
Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for accounting purposes but outside the scope of regulatory consolidation   1 (13,567)
Adjustments for derivatives financial instruments 83,323
Adjustments for SFTs (i.e. repos and similar secured lending) (38,007)
Adjustments for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet exposures) 84,659
Total leverage exposure  884,952
1
Includes adjustments for investments in banking, financial, insurance or commercial entities that are consolidated for accounting purposes but outside the scope of regulatory consolidation and tier 1 capital deductions related to balance sheet assets.
BIS leverage ratio common disclosure template – Phase-in
end of 3Q18
Reconciliation of consolidated assets to leverage exposure (CHF million)   
On-balance sheet items (excluding derivatives and SFTs, but including collateral) 563,377
Asset amounts deducted from Basel III tier 1 capital (9,195)
Total on-balance sheet exposures  554,182
Reconciliation of consolidated assets to leverage exposure (CHF million)   
Replacement cost associated with all derivatives transactions (i.e. net of eligible cash variation margin) 25,975
Add-on amounts for PFE associated with all derivatives transactions 87,918
Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to the operative accounting framework 19,436
Deductions of receivables assets for cash variation margin provided in derivatives transactions (18,045)
Exempted CCP leg of client-cleared trade exposures (20,928)
Adjusted effective notional amount of all written credit derivatives 200,972
Adjusted effective notional offsets and add-on deductions for written credit derivatives (193,793)
Derivative Exposures  101,535
Securities financing transaction exposures (CHF million)   
Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions 171,124
Netted amounts of cash payables and cash receivables of gross SFT assets (35,552)
Counterparty credit risk exposure for SFT assets 11,766
Agent transaction exposures (2,762)
Securities financing transaction exposures  144,576
Other off-balance sheet exposures (CHF million)   
Off-balance sheet exposure at gross notional amount 261,282
Adjustments for conversion to credit equivalent amounts (176,623)
Other off-balance sheet exposures  84,659
Tier 1 capital (CHF million)   
Tier 1 capital  47,420
Leverage exposure (CHF million)   
Total leverage exposure  884,952
Leverage ratio (%)   
Basel III leverage ratio  5.4
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Liquidity coverage ratio
Our calculation methodology for the liquidity coverage ratio (LCR) is prescribed by FINMA. For disclosure purposes our LCR is calculated using a three-month average which, beginning in 1Q17, is measured using daily calculations during the quarter rather than the month-end metrics used before. This change in the LCR averaging methodology resulted from updated FINMA requirements that became effective January 1, 2017.
> Refer to “Liquidity metrics” (pages 112 to 113) in III – Treasury, Risk, Balance sheet and Off-balance sheet – Liquidity and funding management in the Credit Suisse Annual Report 2017 and “Liquidity metrics” (pages 51 to 52) in II – Treasury, risk, balance sheet and off-balance sheet in the Credit Suisse Financial Report 3Q18 for further information on the Group’s liquidity management including high quality liquid assets, liquidity pool and liquidity coverage ratio.
Liquidity coverage ratio

end of 3Q18		 Unweighted
value		 1 Weighted
value		 2
High Quality Liquid Assets (CHF million)
High quality liquid assets  – 174,477
Cash outflows (CHF million)
Retail deposits and deposits from small business customers 159,240 20,709
   of which less stable deposits  159,240 20,709
Unsecured wholesale funding 214,328 84,238
   of which operational deposits (all counterparties) and deposits in networks of cooperative banks  38,899 9,725
   of which non-operational deposits (all counterparties)  99,854 57,014
   of which unsecured debt  15,976 15,976
Secured wholesale funding – 60,189
Additional requirements 168,747 37,784
   of which outflows related to derivative exposures and other collateral requirements  61,215 16,369
   of which outflows related to loss of funding on debt products  1,779 1,779
   of which credit and liquidity facilities  105,753 19,636
Other contractual funding obligations 61,706 61,706
Other contingent funding obligations 217,742 5,841
Total cash outflows  – 270,467
Cash inflows (CHF million)
Secured lending 139,093 89,208
Inflows from fully performing exposures 67,154 31,745
Other cash inflows 63,148 63,148
Total cash inflows  269,395 184,101
Liquidity cover ratio
High quality liquid assets (CHF million) – 174,477
Net cash outflows (CHF million) – 86,366
Liquidity coverage ratio (%)  – 202
Calculated using a three-month average, which is calculated on a daily basis.
1
Calculated as outstanding balances maturing or callable within 30 days.
2
Calculated after the application of haircuts for high quality liquid assets or inflow and outflow rates.
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Minimum disclosures for large banks
The following table shows the Group’s minimum disclosure requirements for large banks prepared in accordance with Swiss CAO for non-systemically relevant financial institutions.
Key metrics for non-systemically relevant financial institutions
end of 3Q18 Phase-in
CHF million, except where indicated         
Minimum required capital (8% of risk-weighted assets) 22,176
Swiss total eligible capital 51,560
   of which Swiss CET1 capital  35,454
   of which Swiss tier 1 capital  47,318
Swiss risk-weighted assets 277,196
Swiss CET1 ratio (%) 12.8
Swiss tier 1 ratio (%) 17.1
Swiss total capital ratio (%) 18.6
Countercyclical buffers (%) 0.242
Swiss CET1 ratio requirement (%) 1 8.442
Swiss tier 1 ratio requirement (%) 1 10.442
Swiss total capital ratio requirement (%) 1 13.042
Swiss leverage ratio based on tier 1 capital (%) 5.3
Leverage exposure 884,952
Liquidity coverage ratio (%) 2 202
Numerator: total high quality liquid assets 174,477
Denominator: net cash outflows 86,366
Reflects the view as if the Group was not a Swiss SIFI. Refer to "Swiss capital requirements and metrics" and "Swiss leverage requirements and metrics" tables for the Swiss SIFI view.
1
The capital requirements are in accordance with Appendix 8 of the CAO, plus the countercyclical buffer.
2
Calculated using a three-month average, which is calculated on a daily basis.
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List of abbreviations
A      
AMA Advanced Measurement Approach
B      
BCBS Basel Committee on Banking Supervision
BFI Banking, financial and insurance
BIS Bank for International Settlements
C      
CAO Capital Adequacy Ordinance
CCP Central counterparties
CCR Counterparty credit risk
CET1 Common equity tier 1
E      
EEPE Effective Expected Positive Exposure
F      
FINMA Swiss Financial Market Supervisory Authority FINMA
G      
G-SIB Global systemically important banks
I      
IAA Internal Assessment Approach
IMA Internal Models Approach
IMM Internal Models Method
IPRE Income producing real estate
IRB Internal Ratings-Based Approach
IRC Incremental Risk Charge
L      
LRD Leverage ratio denominator
P      
PFE Potential future exposure
R      
RNIV Risks not in value-at-risk
RWA Risk-weighted assets
S      
SA Standardized Approach
SA-CCR Standardized Approach - counterparty credit risk
SEC-ERBA Securitization External Ratings-Based Approach
SEC-IRBA Securitization Internal Ratings-Based Approach
SEC-SA Securitization Standardized Approach
SFT Securities Financing Transactions
SIFI Systemically Important Financial Institution
U      
US GAAP Accounting principles generally accepted in the US
V      
VaR Value-at-Risk
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Cautionary statement regarding forward-looking information
This document 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 the following:
– our plans, objectives, ambitions, targets 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.
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, ambitions, targets, expectations, estimates and intentions expressed in such forward-looking statements. These factors include:
– the ability to maintain sufficient liquidity and access capital markets;
– market volatility and interest rate fluctuations and developments affecting interest rate levels;
– the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations, in particular the risk of continued slow economic recovery or downturn in the US or other developed countries or in emerging markets in 2018 and beyond;
– the direct and indirect impacts of deterioration or slow recovery in residential and commercial real estate markets;
– adverse rating actions by credit rating agencies in respect of us, sovereign issuers, structured credit products or other credit-related exposures;
– the ability to achieve our strategic goals, including those related to cost efficiency, income/(loss) before taxes, capital ratios and return on regulatory capital, leverage exposure threshold, risk-weighted assets threshold, return on tangible equity and other targets, objectives and ambitions;
– the ability of counterparties to meet their obligations to us;
– the effects of, and changes in, fiscal, monetary, exchange rate, trade and tax policies, as well as currency fluctuations;
– political and social developments, including war, civil unrest or terrorist activity;
– the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations;
– operational factors such as systems failure, human error, or the failure to implement procedures properly;
– the risk of cyber attacks on our business or operations;
– actions taken by regulators with respect to our business and practices and possible resulting changes to our business organization, practices and policies in countries in which we conduct our operations;
– the effects of changes in laws, regulations or accounting or tax standards, policies or practices in countries in which we conduct our operations;
– the potential effects of proposed changes in our legal entity structure;
– competition or changes in our competitive position in geographic and business areas in which we conduct our operations;
– the ability to retain and recruit qualified personnel;
– the ability to maintain our reputation and promote our brand;
– the ability to increase market share and control expenses;
– technological changes;
– the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users;
– acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets;
– the adverse resolution of litigation, regulatory proceedings and other contingencies; and
– other unforeseen or unexpected events and our success at managing these and 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, including the information set forth in “Risk factors” in I – Information on the company in our Annual Report 2017.
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