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					                                 CREDIT SUISSE
                                  (Incorporated in Switzerland)
                                     __________________

                                     Registration Document


This Registration Document comprises the attached Information Addendum (pages 2-9) and the
following, which are incorporated herein by reference and have been filed with the Irish Stock
Exchange:

    •   the 2008 First Quarter Financial Report on Form 6-K of Credit Suisse (the “First Quarter
        Form 6-K”), including the Financial Report 1Q08 exhibited thereto insofar as it is
        incorporated by reference into the First Quarter Form 6-K, as indicated in the Information
        Addendum under the heading “Information incorporated by reference” (pages 4-7);

    •   the 2007 Annual Report on Form 20-F of Credit Suisse (the “Annual Report 2007”), as
        indicated in the Information Addendum under the heading “Information incorporated by
        reference” (pages 4-7) and subject to the exclusions contained in the Information
        Addendum under the heading “Excluded information for Credit Suisse Registration
        Document” (pages 7-9); and

    •   the 2006 Annual Report of Credit Suisse.


This Registration Document has been prepared pursuant to Prospectus (Directive 2003/71/EC)
Regulations 2005. The information in this Registration Document has been prepared pursuant to
Article 14 of Commission Regulation (EC) No. 809/2004 of April 29, 2004. Application has been
made to the Irish Financial Services Regulatory Authority, as competent authority under Directive
2003/71/EC, for the Registration Document to be approved. This Registration Document replaces
in its entirety the Registration Document approved by the Irish Financial Services Regulatory
Authority dated April 9, 2008.


The appointed Irish Listing Agent is J&E Davy, Davy House, 49 Dawson Street, Dublin 2, Ireland.


Prospective investors should read the entire document and, in particular, the Risk Factors
set out in pages 375-380 of the Annual Report 2007, when considering an investment in
Credit Suisse debt securities.

                                     __________________


                          Registration Document dated May 14, 2008




                                                    1
                                  Information Addendum

For purposes of this Information Addendum, unless the context otherwise requires, the terms
‘‘Credit Suisse’’, ‘‘the Bank’’, ‘‘we’’, ‘‘us’’ and ‘‘our’’ mean Credit Suisse, the Swiss bank subsidiary
of the Group, and its consolidated subsidiaries, and the term ‘‘the Group’’ means Credit Suisse
Group and its consolidated subsidiaries.



General Information

1. Credit Suisse

Credit Suisse was established on July 5, 1856 and registered in the Commercial Register
(registration no. CH-020.3.923.549-1) of the Canton of Zurich on April 27, 1883 for an unlimited
duration under the name Schweizerische Kreditanstalt. Credit Suisse’s name was changed to
Credit Suisse First Boston on December 11, 1996. On May 13, 2005, the Swiss banks Credit
Suisse First Boston and Credit Suisse were merged. Credit Suisse First Boston was the surviving
legal entity, and its name was changed to Credit Suisse (by entry in the commercial register).

Credit Suisse, a Swiss bank and joint stock corporation established under Swiss law, is a wholly
owned subsidiary of Credit Suisse Group. Credit Suisse’s registered head office is in Zurich, and
it has additional executive offices and principal branches located in London, New York, Hong
Kong, Singapore and Tokyo.

Credit Suisse’s registered head office is located at Paradeplatz 8, CH-8001, Zurich, Switzerland,
and its telephone number is 41-44-333-1111.

2. Risk Factors

See pages 375-380 of the Annual Report 2007.

3. Credit Suisse’s Auditors

Credit Suisse’s statutory and bank law auditor is KPMG Klynveld Peat Marwick Goerdeler SA,
Badenerstrasse 172, 8004 Zurich, Switzerland (KPMG). KPMG is a member of the Swiss Institute
of Certified Accountants and Tax Consultants.

Credit Suisse’s special auditor is BDO Visura, Fabrikstrasse 50, 8031 Zurich, Switzerland.

4. Documents on Display

For the life of this registration document, of which this Information Addendum forms a part, the
following documents (or copies thereof) may be physically inspected at the registered head office
of Credit Suisse at Paradeplatz 8, CH-8001, Zurich, Switzerland:

        i.    the Articles of Association of Credit Suisse; and

        ii.   historical financial information of Credit Suisse and its subsidiary undertakings for the
              financial years ended December 31, 2007 and 2006.

This information is also available on the Credit Suisse Group website, www.credit-suisse.com.




                                                        2
5. Change

Save as disclosed in the First Quarter Form 6-K, there has been no material adverse change in
the prospects of Credit Suisse and its consolidated subsidiaries since December 31, 2007. There
has been no significant change in the financial position of Credit Suisse and its consolidated
subsidiaries since March 31, 2008.

6. Regulatory Update

The Banking (Special Provisions) Act 2008 (the “Act”), enacted on February 21, 2008, grants HM
Treasury wide powers to make certain orders in respect of UK authorised deposit-taking
institutions in order to maintain the stability of the UK financial system and/or protect the public
interest where financial assistance has been provided by HM Treasury to the deposit-taking
institution. Such orders may include, inter alia, the transfer of securities issued by the relevant
entities, the transfers of property, rights and liabilities of the relevant entities and the dissolution of
any relevant entities. The principal subsidiary of Credit Suisse that is a UK authorised deposit-
taking institution is Credit Suisse International.

7. Address of Directors and Executives

The business address of the members of the Board of Directors and the members of the
Executive Board is Paradeplatz 8, CH-8001, Zurich, Switzerland.

8. Market Activity

Credit Suisse may update its expectations on market activity, and any such update will be
included in its quarterly or annual reports.

9. Conflicts

There are no conflicts of interest of the members of the Board of Directors and the members of
the Executive Board between their duties to the Bank and their private interests and/or other
duties.

10. Responsibility Statements

Credit Suisse takes responsibility for the information contained in this registration document, of
which this Information Addendum forms a part, having taken all reasonable care to ensure that
such is the case, and is satisfied that the information contained in this registration document, of
which this Information Addendum forms a part, is, to the best knowledge and belief of Credit
Suisse, in accordance with the facts and contains no omission likely to affect its import.

11. Legal and Arbitration Proceedings

Except as disclosed in the section ‘‘Additional Information – Legal proceedings’’ in the Annual
Report 2007 and “Key Information – Legal Proceedings” in the First Quarter Form 6-K, there are
no, and have not been during the period of 12 months ending on the date of this Registration
Document, any governmental, legal or arbitration proceedings which may have, or have had in
the past, significant effects on the Bank’s financial position or profitability, and Credit Suisse is not
aware of any such proceedings being either pending or threatened.

12. Interim Financial Information

The First Quarter Form 6-K provides interim financial information for Credit Suisse. This
information has not been audited.


                                                         3
    Information incorporated by reference

    The table below lists the specific items of the First Quarter Form 6-K, the Annual Report 2007 and
    the Annual Report 2006 that are hereby incorporated by reference. This table is subject to the
    exclusions contained in the table under the heading “Excluded information for Credit Suisse
    Registration Document”.

Section      Section heading                      Sub –heading                               Page(s)

                                        First Quarter Form 6-K
N/A          Form 6-K                             Cover page                                 1
                                                  Introduction                               2
                                                  Forward-looking statements                 2
                                                  Key Information – Selected financial       3-4
                                                  data
                                                  Key Information – Operating and            4-5
                                                  financial review and prospects
                                                  Key Information – Legal proceedings        5
                                                  Key Information – Treasury and Risk        5
                                                  Management
                                                  Exhibits                                   6

                        Exhibit to First Quarter Form 6-K (Financial Report 1Q08)
I            Credit Suisse Results                Operating environment                      6-8
                                                  Credit Suisse – Capital trends             10
                                                  Credit Suisse – Management changes         10
                                                  Credit Suisse – Remediation                11
                                                  developments on certain internal control
                                                  matters
                                                  Core Results – Risk trends                 13
                                                  Core Results – Fair valuations             13
                                                  Core Results – Operating expenses –        16
                                                  Compensation and benefits
                                                  Key performance indicators                 18
II           Results by division                  Private Banking                            20-29
                                                  Investment Banking                         30-37
                                                  Asset Management                           38-44
III          Overview of Results and Assets       Results                                    46-47
             under Management
                                                  Assets under Management                    48-50
IV           Treasury and Risk management         Treasury management                        52-57
                                                  Risk management                            58-64


                                                        4
Section   Section heading                     Sub –heading                              Page(s)
V         Condensed consolidated financial    Notes to the condensed consolidated       100-103
          statements – unaudited              financial statements – unaudited – Note
                                              22 – Subsidiary guarantee information
                                              Notes to the condensed consolidated       104
                                              financial statements – unaudited – Note
                                              23 – Litigation

                                       Annual Report 2007
N/A       Form 20-F                                                                     N/A
I         Information on the Company          Credit Suisse at a glance                 10-11
                                              Global reach of Credit Suisse             12-13
                                              The year at Credit Suisse                 14
                                              Vision, mission and principles            15
                                              Corporate citizenship                     15
                                              Strategy                                  16-18
                                              Our business                              19-27
                                              Organisational Structure                  27-28
                                              Regulation and supervision                28-32
II        Operating and financial review      Operating environment                     34-36
                                              Credit Suisse                             37-42
                                              Key performance indicators                47
                                              Private Banking                           48-56
                                              Investment Banking                        57-62
                                              Asset Management                          63-68
                                              Results Summary                           70-71
                                              Assets under Management                   72-74
                                              Critical accounting estimates             75-80
III       Balance sheet, Off-balance sheet,   Balance sheet, off-balance sheet and      82-91
          Treasury and Risk                   other contractual obligations
                                              Treasury management                       92-103
                                              Risk management                           104-120
IV        Corporate governance                Overview                                  122-124
                                              Board of Directors                        128-138
                                              Executive Board                           139-143
                                              Compensation                              144-158
                                              Additional information                    159-160
VII       Consolidated financial statements   Report of the Group Auditors              281-282


                                                    5
Section   Section heading                      Sub –heading                             Page(s)
          – Credit Suisse (Bank)               Consolidated statements of income        283
                                               Consolidated balance sheets              284-285
                                               Statements of changes in shareholder’s   286
                                               equity
                                               Comprehensive income                     287
                                               Consolidated statements of cash flows    288-289
                                               Notes to the consolidated accounts       290-333
                                               Controls and procedures                  334-335
                                               Report of the Group Auditors             336
VIII      Parent company financial             Report of the Statutory Auditors         339
          statements – Credit Suisse
                                               Financial review                         340
          (Bank)
                                               Statements of income                     341
                                               Balance sheets                           342
                                               Off-balance sheet business               343
                                               Notes to the financial statements        344-350
                                               Proposed appropriation of retained       350
                                               earnings
IX        Additional information               Statistical information                  352-369
                                               Legal proceedings                        370-374
                                               Risk factors                             375-380
                                               Other information                        381-386
                                               Foreign currency translation rates       386
X         Investor information                 Investor information                     388-390

                                        Annual Report 2006
N/A       Credit Suisse financial highlights                                            N/A
N/A       Organization and description of      Overview                                 2
          business
                                               Global Banking Divisions                 2
                                               The year at the Bank                     2
                                               Board of Directors and Executive Board   3-4
N/A       Operating and financial review       The Bank                                 5-9
N/A       Risk management                      Overview                                 10-12
                                               Economic Risk Capital                    13-14
                                               Market risk                              14-19
                                               Credit risk                              19-23



                                                     6
Section      Section heading                     Sub –heading                              Page(s)
                                                 Liquidity and funding risk                23-26
                                                 Operational risk                          26-27
                                                 Legal risk                                27
                                                 Reputational risk                         28
N/A          Consolidated financial statements   Consolidated financial statements         29
                                                 Consolidated statements of income         30
                                                 Consolidated balance sheets               31
                                                 Statements of changes in shareholder’s    32
                                                 equity
                                                 Comprehensive income                      32
                                                 Consolidated statements of cash flows     33-34
N/A          Notes to the consolidated                                                     35-105
             financial statements
N/A          Report of the independent                                                     106
             registered public accounting firm
N/A          Parent company                                                                107-120



    Excluded information for Credit Suisse Registration Document

    The table below contains references to specific sections of the Annual Report 2007 that are
    hereby excluded from this Registration document. All other information exclusively about the
    Group that is contained elsewhere in the Annual Report is also excluded from this Registration
    Document. The non-incorporated parts are either not relevant for the investor or covered
    elsewhere in the Registration Document.

Section      Section heading         Sub –heading(s) and/or specific section(s)           Page(s)
number
N/A          Form 20-F               Item 19. Exhibits.                                   12 of the
                                                                                          Form 20-F
I            Information on the      The year at Credit Suisse insofar as it discusses    14
             company                 Clariden Leu and Bank-now
II           Operating and           Credit Suisse – except for:                          37-41
             financial review
                                     • Revaluing of certain asset-backed securities
                                       positions on page 38;
                                     • Credit Suisse Reporting Structure on page 38;
                                     • Allocations and funding on page 40;
                                     • Differences between Group and Bank on page
                                       41 insofar as it relates to the Bank;
                                     • Differences between Group and Bank
                                       businesses on page 41; and


                                                          7
Section   Section heading       Sub –heading(s) and/or specific section(s)          Page(s)
number
                                • Comparison of consolidated statements of
                                  income insofar as it relates to the Bank
II        Operating and         Comparison of consolidated balance sheets –         42
          financial review      columns under the heading “Group”
II        Operating and         Capitalization – columns under the heading          42
          financial review      “Group”
II        Operating and         Capital adequacy – columns under the heading        42
          financial review      “Group”
II        Operating and         Results summary – columns under the following       70-71
          financial review      headings:
                                • “Corporate Center”;
                                • “Core Results”; and
                                • “Credit Suisse”
II        Operating and         Critical accounting estimates – section under the   79-80
          financial review      heading “Pension plans – The Group”
III       Balance sheet, Off-   Balance sheet, off-balance sheet and other          82-91
          balance sheet,        contractual obligations – the tables under the
          Treasury and Risk     following headings:
                                • “Trading and hedging of derivative instruments
                                  – Group” on page 87;
                                • “Exposure with respect to OTC derivative
                                  receivables by maturity” – columns under the
                                  heading “Group” only on page 89;
                                • “Exposure with respect to OTC derivatives by
                                  counterparty credit rating” – columns under the
                                  heading “Group” only on page 90; and
                                • “Contractual obligations and other commercial
                                  commitments – Group” on pages 91
III       Balance sheet, Off-   Sections or tables under the following headings:    92-103
          balance sheet,
          Treasury and Risk     • “Shareholder’s equity” – columns under the
                                  heading “Group” only on page 96;
                                • “Capital management – Share repurchase
                                  activities” on pages 96-97;
                                • “Capital management – Dividends and dividend
                                  policy” on pages 97-98;
                                • “BIS statistics” – columns under the heading
                                  “Group” only on page 99; and
                                • “Capital Management – Regulatory Capital –
                                  Group” on page 99
                                • “Economic capital” – columns under the
                                  heading “Group” only on page 101


                                                    8
Section   Section heading          Sub –heading(s) and/or specific section(s)           Page(s)
number
III       Balance sheet, Off-      Risk management – the tables under the               107 and
          balance sheet,           headings:                                            117
          Treasury and Risk
                                   • “Group position risk” on page 107; and
                                   • “Loans” – columns under the headings “Other”
                                     and “Credit Suisse” on page 117
IV        Corporate                Company                                              123
          Governance
IV        Corporate                Overview – Information Policy                        124
          Governance
IX        Additional information   Statistical information – the table under the        352
                                   heading “Selected information – Group”
IX        Additional information   Statistical information – Group                      354-367
IX        Additional information   Statistical information – the table under the        369
                                   heading “Ratio of earnings to fixed charges -
                                   Group”
IX        Additional information   Additional information - Except the information      381-386
                                   under the following headings:
                                   • “Exchange controls”;
                                   • “Taxation”; and
                                   • “Property and equipment”
X         Investor Information     Entire section except for the table under the        388-390
                                   heading “Bond ratings” – rows relating to the Bank
                                   only – on page 389




                                                       9
                               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

                                             For the month of April 2008

                                       Commission File Number 001-33434

                                             CREDIT SUISSE
                                   (Translation of registrant’s name into English)

                             Paradeplatz 8, P.O. Box 1, CH-8070 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-.
2




    Introduction
    This report filed on Form 6-K contains certain information about Credit Suisse to be incorporated by reference in the Bank’s Reg-
    istration Statement on Form F-3 (file no. 333-132936). Credit Suisse Group’s Financial Report for the first quarter of 2008
    (Credit Suisse Financial Report 1Q08) is attached as an exhibit to this Form 6-K and was furnished to the SEC on April 25, 2008.
    The Bank is incorporating by reference only those portions of the Credit Suisse Financial Report 1Q08 relating to the Bank as
    described herein.
        Unless the context otherwise requires, references herein to “Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit
    Suisse Group and its consolidated subsidiaries and the term “the Bank” means Credit Suisse, the Swiss bank subsidiary of the
    Group, and its consolidated subsidiaries.
         The Bank, a Swiss bank and joint stock corporation established under Swiss law, is a wholly-owned subsidiary of Credit
    Suisse Group. The Bank’s registered head office is in Zurich, and it has additional executive offices and principal branches in Lon-
    don, New York, Hong Kong, Singapore and Tokyo.
         References herein to “CHF” are to Swiss francs.


    Forward-looking statements
    This Form 6-K and the information incorporated by reference in this Form 6-K include statements that constitute forward-looking
    statements within the meaning of the Private Securities Litigation Reform Act. In addition, in the future Credit Suisse Group, the
    Bank and others on their behalf may make statements that constitute forward-looking statements.
         When evaluating forward-looking statements, you should carefully consider the cautionary statement regarding forward-look-
    ing information, the risk factors and other information set forth in Credit Suisse Group’s and the Bank’s annual report on Form 20-
    F for the year ended December 31, 2007 (the Credit Suisse 2007 20-F), and subsequent annual reports on Form 20-F filed by
    the Group and the Bank with the US Securities and Exchange Commission (SEC) and the Group and the Bank’s reports on Form
    6-K furnished to or filed with the SEC, and other uncertainties and events.
                                                                                                                                       3




Key information

Selected financial data
Selected income statement information

in                                                                                                      1Q08      1Q07    % change

Statements of income (CHF million)
Net revenues                                                                                            2,296    11,094       (79)
Provision for credit losses                                                                              151        51        196
Compensation and benefits                                                                               3,129     4,790       (35)
General and administrative expenses                                                                     1,583     1,557         2
Commission expenses                                                                                      570       550          4
Total other operating expenses                                                                          2,153     2,107         2
Total operating expenses                                                                                5,282     6,897       (23)
Income/(loss) before taxes and minority interests                                                     (3,137)     4,146          –
Income tax expense/(benefit)                                                                            (586)      789           –
Minority interests                                                                                      (170)      955           –
Net income/(loss)                                                                                     (2,381)     2,402          –




Selected balance sheet information

end of                                                                                                  1Q08      4Q07    % change

Balance sheet statistics (CHF million)
Total assets                                                                                        1,183,514 1,333,742       (11)
Share capital                                                                                           4,400     4,400         0




For additional information on the condensed consolidated statements of income for the three months ended March 31, 2008 and
2007 and the condensed consolidated balance sheets as of March 31, 2008 and December 31, 2007, refer to Note 22 – Sub-
sidiary guarantee information in V – Condensed consolidated financial statements – unaudited in the Credit Suisse Financial Report
1Q08, which Note is incorporated herein by reference. For a detailed description of factors that affect the results of operations of
the Bank, refer to II – Operating and financial review – Operating environment in the Credit Suisse 2007 20-F.
4




    BIS statistics

                                                                                                                                                                                Basel II
                                                                                                                                                  Basel II         Basel I    % change

    end of                                                                                                                           1Q08          4Q07            4Q07            QoQ

    Capital (CHF million)
    Tier 1 capital                                                                                                                 26,573        29,828          32,254            (11)
        of which non-cumulative perpetual preferred securities and capital notes                                                    4,806         3,514            3,514             37
    Total BIS regulatory capital                                                                                                   40,011        40,892          44,318              (2)

    Capital ratios (%)
    Tier 1 ratio                                                                                                                       9.2           9.6            11.0              –
    Total BIS regulatory capital ratio                                                                                                13.9          13.2            15.1              –




    Operating and financial review and
    prospects
    Except where noted, the business of the Bank is substantially the same as the business of Credit Suisse Group, and substantially
    all of the Bank’s operations are conducted through the Private Banking, Investment Banking and Asset Management segments.
    These segment results are included in Core Results. Certain other assets, liabilities and results of operations are managed as part
    of the activities of the three segments, however, since they are legally owned by the Group, they are not included in the Bank’s
    consolidated financial statements. These relate principally to the activities of Clariden Leu, Neue Aargauer Bank and BANK-now,
    which are managed as part of Private Banking. Core Results also includes certain Group corporate center activities that are not
    applicable to the Bank.
        These operations and activities vary from period to period and give rise to differences between the Bank’s consolidated assets,
    liabilities, revenues and expenses, including pensions and taxes, and those of the Group.

    Differences between the Group and the Bank businesses

    Entity                                                                                                                                                   Principal business activity
    Clariden Leu 1                                                                                                                                            Banking and securities
    Neue Aargauer Bank                                                                                                                  Banking (in the Swiss canton of Aargau)
    BANK-now 2                                                                                                                     Private credit and car leasing (in Switzerland)
                                                                                                          Special purpose vehicles for various funding activities of the Group,
    Financing vehicles of the Group                                                                                     including for purposes of raising consolidated capital

    1
     Formed as of January 1, 2007 by the merger of the private banks Clariden Bank, Bank Leu, Bank Hofmann and BGP Banca die Gestione Patrimoniale, and the securities dealer Credit
    Suisse Fides. 2 Formed as of January 3, 2007 as a subsidiary of Credit Suisse Group.
                                                                                                                                            5




Comparison of consolidated statements of income

                                                                                                             Bank                Group

in                                                                                               1Q08       1Q07      1Q08       1Q07

Statements of income (CHF million)
Net revenues                                                                                     2,296     11,094     3,095     11,620
Total operating expenses                                                                         5,282      6,897     5,473      7,091
Income/(loss) before taxes and minority interests                                               (3,137)     4,146    (2,529)     4,476
Net income/(loss)                                                                               (2,381)     2,402    (2,148)     2,729




Comparison of consolidated balance sheets

                                                                                                             Bank                Group

end of                                                                                           1Q08       4Q07      1Q08       4Q07

Balance sheet statistics (CHF million)
Total assets                                                                                 1,183,514 1,333,742 1,207,994 1,360,680
Total liabilities                                                                            1,156,663 1,302,408 1,170,355 1,317,481




For information on the operating and financial review and prospects of the Bank, refer to I – Credit Suisse results on pages 6 to
18 (excluding – Credit Suisse and – Core results but including – Capital trends and – Management changes on page 10, – Reme-
diation developments on certain internal control matters on page 11, – Risk trends and – Fair valuations on page 13 and – Results
detail – Operating expenses – Compensation and benefits on page 16), II – Results by division on pages 20 to 44 and III –
Overview of Results and Assets under Management on pages 46 to 50. These sections are included in the Credit Suisse Finan-
cial Report 1Q08 and incorporated herein by reference.




Legal proceedings
The Bank is involved in a number of judicial, regulatory and arbitration proceedings concerning matters arising in connection with
the conduct of its businesses. Some of these actions have been brought on behalf of various classes of claimants and seek dam-
ages of material and/or indeterminate amounts. The Bank believes, based on currently available information and advice of coun-
sel, that the results of such proceedings, in the aggregate, will not have a material adverse effect on the Bank’s financial condi-
tion but might be material to operating results for any particular period, depending, in part, upon the operating results for such
period.
    Information on the Bank’s legal proceedings is set forth in Note 23 – Litigation in V – Condensed consolidated financial state-
ments – unaudited in the Credit Suisse Financial Report 1Q08, which Note is incorporated herein by reference.
    A putative class action was filed on April 21, 2008 in the US District Court for the Southern District of New York against Credit
Suisse and certain executives by certain holders of American Depositary Receipts and shares alleging violations of Sections 10 and
20 of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Plaintiffs in this action allege that Credit Suisse’s stock
price was artificially inflated as a result of allegedly misleading disclosures relating to the company’s business and financial results.




Treasury and Risk Management
For information on the Bank’s treasury and risk management, refer to IV – Treasury and Risk management on pages 52 to 64 of
the Credit Suisse Financial Report 1Q08, which information is incorporated herein by reference.
6




    Exhibits
    No. Description

    99.1 Credit Suisse Financial Report 1Q08.
Financial Report

1Q 08
Financial highlights


                                                                                                                                                   in / end of                   % change

                                                                                                                          1Q08           4Q07          1Q07            QoQ                YoY

Net income (CHF million)
Net income/(loss)                                                                                                       (2,148)            540         2,729               –                –

Earnings per share (CHF)
Basic earnings per share                                                                                                 (2.10)           0.53          2.56               –                –
Diluted earnings per share                                                                                               (2.10)           0.49          2.42               –                –

Return on equity (%)
Return on equity                                                                                                         (20.8)            5.1          25.2               –                –

Core Results (CHF million)
Net revenues                                                                                                              3,019         6,561        10,669             (54)          (72)
Provision for credit losses                                                                                                 151            203             53           (26)              185
Total operating expenses                                                                                                  5,440         6,155          7,040            (12)          (23)
Income/(loss) before taxes                                                                                              (2,572)            203         3,576               –                –

Core Results statement of income metrics (%)
Cost/income ratio                                                                                                         180.2           93.8          66.0               –                –
Pre-tax income margin                                                                                                    (85.2)            3.1          33.5               –                –
Effective tax rate                                                                                                         17.7        (198.5)          23.0               –                –
Net income margin                                                                                                        (71.1)            8.2          25.6               –                –

Assets under management and net new assets (CHF billion)
Assets under management                                                                                                1,380.5        1,554.7        1,551.5          (11.2)        (11.0)
Net new assets                                                                                                             (4.2)        (10.5)          43.0               –                –

Balance sheet statistics (CHF million)
Total assets                                                                                                        1,207,994 1,360,680 1,359,687                       (11)          (11)
Net loans                                                                                                              229,168       240,534        212,831              (5)                8
Total shareholders’ equity                                                                                              37,639         43,199        44,004             (13)          (14)

Book value per share (CHF)
Total book value per share                                                                                                37.14         42.33          41.97            (12)          (12)
Tangible book value per share 1                                                                                           27.15         31.23          30.97            (13)          (12)

Shares outstanding (million)
Common shares issued                                                                                                   1,162.5        1,162.4        1,215.5               0              (4)
Treasury shares                                                                                                         (149.0)        (141.8)       (167.0)               5          (11)
Shares outstanding                                                                                                     1,013.5        1,020.6        1,048.5             (1)              (3)

Market capitalization
Market capitalization (CHF million)                                                                                     56,251         76,024       101,297             (26)          (44)
Market capitalization (USD million)                                                                                     56,618         67,093        83,442             (16)          (32)

BIS statistics
Risk-weighted assets (CHF million) 2                                                                                   301,009       312,068        271,293              (4)               11
Tier 1 ratio (%) 2                                                                                                           9.8          11.1          13.2               –                –
Total capital ratio (%) 2                                                                                                  13.6           14.5          17.3               –                –

Number of employees (full-time equivalents)
Number of employees                                                                                                     48,700         48,100        45,300                1                8

1
  Based on tangible shareholders’ equity, which is calculated by deducting goodwill and other intangible assets from total shareholders’ equity. Management believes that the return on
tangible shareholders’ equity is meaningful as it allows consistent measurement of the performance of businesses without regard to whether the businesses were acquired. 2 Under
Basel II from January 1, 2008. Prior period ratios are reported under Basel I and are therefore not comparable. The 4Q07 BIS tier 1 ratio under Basel II would have been 10.0%. For
further information, refer to IV – Treasury and Risk management – Treasury management.
Dear shareholders, clients and colleagues

                                                          The operating environment in the first quarter of 2008 contin-
                                                          ued to be extremely challenging for the entire industry. Market
                                                          conditions deteriorated further in March, leading to additional
                                                          writedowns in our leveraged finance and structured products
                                                          businesses within Investment Banking. As a result, Credit
                                                          Suisse reported a net loss of CHF 2,148 million in the first
                                                          quarter of 2008. Net revenues on a core results basis were
                                                          CHF 3,019 million, down 72% from the same period in 2007.
                                                              While our first-quarter results are clearly unsatisfactory, we
                                                          remain well positioned to advance our strategy and to capture
                                                          growth opportunities arising out of the current market disrup-
                                                          tion. During the quarter, clients turned increasingly to the best
                                                          capitalized and most stable financial institutions, including
                                                          Credit Suisse, and we saw steady inflows in Private Banking
                                                          and client activity across a number of businesses. Our BIS
                                                          tier 1 ratio under Basel II was 9.8% as of the end of March,
                                                          making us an attractive partner for clients in these challenging
                                                          markets.
                                                              Our capacity to generate revenues remains strong. Other
                                                          than the areas affected directly by the credit crisis, most of
Brady W. Dougan, Chief Executive Officer (left),          our businesses performed well, with revenues near, or in some
Walter B. Kielholz, Chairman of the Board of Directors.   cases above, those in the first quarter of 2007. Growth
                                                          momentum in most European and major emerging markets
                                                          and, in particular, the robust economic environment in Switzer-
                                                          land, helped to mitigate the adverse effects of these market
                                                          developments on our business. In addition, we generated
                                                          approximately CHF 1.2 billion of our net revenues from cross-
                                                          divisional activities. Our results demonstrate the benefits of
                                                          our client-focused integrated banking model, in terms of both
                                                          diversification and collaboration.
                                                              During the first quarter of 2008, we continued to manage
                                                          down risk positions in our leveraged finance and structured
                                                          products businesses, as we have done since the early stages
                                                          of the credit crisis. Exposures in leveraged finance and the
                                                          commercial mortgage businesses have declined 58% since
                                                          September 30, 2007 and 34% in the first quarter of 2008.



                                                          First-quarter results of our core businesses

                                                          Private Banking recorded pre-tax income of CHF 1,324 mil-
                                                          lion in the first quarter of 2008, down 8% from the strong first
                                                          quarter of 2007. Net revenues were CHF 3,355 million, in line
                                                          with the first quarter of 2007, despite an environment charac-
                                                          terized by high market volatility and continued cautious
                                                          investor behavior. Net new assets were CHF 17.1 billion in the
                                                          first quarter, including net new assets of CHF 13.5 billion in
                                                          our global Wealth Management business, with strong contribu-
                                                          tions from Switzerland and the Americas.
    Investment Banking reported a pre-tax loss of CHF 3,460          Well positioned in a challenging environment
million in the first quarter of 2008, compared with income of
CHF 1,990 million in the strong first quarter of 2007. Net rev-      Our business model has proven resilient and we remain well
enues declined substantially from the prior year, reflecting net     positioned to seize the opportunities arising from the changing
writedowns of CHF 5,281 million in our leveraged finance and         financial landscape. We will continue to take the necessary
structured products businesses. Outside these affected areas,        steps to ensure that our businesses are scaled in line with the
most businesses delivered a good performance. The quarter’s          environment, and that our resources are focused on high-
results included a near-record performance in global rates and       potential areas. We also expect to maintain our strong capital
foreign exchange and strong emerging markets trading results         position and we will continue to focus on managing our liquid-
within our fixed income businesses. Our cash equities busi-          ity conservatively. These are important strengths in uncertain
ness also performed well. Prime services achieved its best-          and volatile markets because they enable us to serve as a safe
ever quarterly revenues, reflecting strong growth in client bal-     haven for clients and increase market share, and contribute to
ances and new client mandates. Growth prospects remain               profitable growth.
strong for that area.
    Asset Management reported a pre-tax loss of CHF 468
million in the first quarter, compared with income of CHF 257        Yours sincerely
million in the first quarter of 2007, reflecting net writedowns of
CHF 566 million from securities purchased from our money
market funds and lower private equity and other investment-
related gains. To build on momentum and focus on our
strengths, we have reorganized our platform into three areas:        Walter B. Kielholz        Brady W. Dougan
global investment strategies, multi-asset class solutions and        April 2008
alternative investment strategies. During the quarter, Rob
Shafir, CEO of our Americas region, was appointed CEO of
the Asset Management division in addition to his current
responsibilities.
Financial Report                                                   I       5 Credit Suisse results
                                                                           6   Operating environment


1Q 08                                                                      9
                                                                          12
                                                                          18
                                                                               Credit Suisse
                                                                               Core Results
                                                                               Key performance indicators




                                                                   II     19 Results by division
                                                                          20 Private Banking
                                                                          22    Wealth Management
                                                                          27    Corporate & Retail Banking
                                                                          30 Investment Banking
                                                                          38 Asset Management

                                                                          45 Overview of Results and
                                                                   III       Assets under Management
                                                                          46 Results
                                                                          48 Assets under Management




                                                                   IV     51 Treasury and Risk management
                                                                          52 Treasury management
                                                                          58 Risk management




                                                                          65 Condensed consolidated
                                                                   V         financial statements – unaudited
                                                                          67 Report of Independent Registered Public
                                                                             Accounting Firm
                                                                          69 Condensed consolidated financial statements –
                                                                             unaudited
                                                                          75 Notes to the condensed consolidated financial
                                                                             statements – unaudited
For purposes of this report, unless the context otherwise
requires, the terms “Credit Suisse,” “the Group,” “we,” “us” and
“our” mean Credit Suisse Group and its consolidated sub-
                                                                   VI    105 Investor information
                                                                         106 Investor information
sidiaries. The business of Credit Suisse, the Swiss bank sub-
sidiary 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, the Swiss bank sub-
sidiary of the Group, and its consolidated subsidiaries.


In various tables, use of “–” indicates not meaningful or not
applicable.
Credit Suisse at a glance

                As one of the world’s leading financial services providers, we are com-
Credit Suisse
                mitted to delivering our combined financial experience and expertise to
                corporate, institutional and government clients and high-net-worth indi-
                viduals worldwide, as well as to retail clients in Switzerland. We serve
                our diverse clients through our three divisions, which cooperate closely
                to provide holistic financial solutions based on innovative products and
                specially tailored advice. Founded in 1856, we have a truly global reach
                today, with operations in over 50 countries and a team of over 48,000
                employees from approximately 100 different nations.



                In Private Banking, we offer comprehensive advice and a broad range
Private
                of wealth management solutions, including pension planning, life insur-
Banking
                ance products, tax planning and wealth and inheritance advice, which
                are tailored to the needs of high-net-worth individuals worldwide. In
                Switzerland, we supply banking products and services to high-net-
                worth, corporate and retail clients.




                In Investment Banking, we offer investment banking and securities
Investment
                products and services to corporate, institutional and government clients
Banking
                around the world. Our products and services include debt and equity
                underwriting, sales and trading, mergers and acquisitions advice,
                divestitures, corporate sales, restructuring and investment research.




                In Asset Management, we offer integrated investment solutions and
Asset
                services to institutions, governments and private clients globally. We
Management
                provide access to the full range of investment classes, ranging from
                equity and fixed income products and multi-asset class solutions to
                alternative investments such as private equity, real estate and hedge
                funds.
I
Credit Suisse results    6 Operating environment

                         9 Credit Suisse

                        12 Core Results

                        18 Key performance indicators
6




    Operating environment
    The operating environment in 1Q08 was extremely challenging, particularly in March, given the accelerated
    deterioration in the mortgage and credit markets and its continued contagion on other sectors and asset
    classes and effects on the global economy. The United States Federal Reserve (Fed) undertook significant
    interest rate cuts and, together with other central banks, provided additional emergency funding to support
    market liquidity. The US dollar reached new lows against most major currencies. Economic data indicated a
    further slowdown in the US, while most economies in Europe and major emerging markets maintained growth
    momentum.




    Economic environment                                                   towards this asset class, and commodity price volatility
                                                                           increased, in particular during the second half of the quarter.
    During 1Q08, we observed further signs of a decoupling of              Agricultural products and precious metals recorded strong
    the US and other economic regions. In the US, a weaker labor           price increases as those markets were additionally supported
    market, tighter credit standards and increased inflationary con-       by tightening supply and continued strong fundamental
    cerns adversely impacted consumer sentiment and provided               demand.
    indications that the pronounced deceleration of economic                   Major equity markets experienced high volatility during
    growth observed towards the end of 2007 may persist for a              1Q08 and most stock prices declined amid slower economic
    longer period. Meanwhile, most economies in Europe and                 growth prospects and a general risk aversion by investors.
    major emerging markets largely maintained growth momen-                Financial institutions traded lower on the back of a further
    tum, helping to partially mitigate the adverse impacts emerging        deterioration in the mortgage and credit markets, continued
    from the developments in the US. After easing towards the              economic uncertainty and liquidity concerns (see the chart
    end of 2007, concern about inflationary pressure again                 “Equity markets” and “Money markets”). Credit standards
    increased, driven by higher commodity prices. Some commod-             tightened, with adverse impacts on the US real estate sector,
    ity markets showed signs of overheating during 1Q08, reflect-          including a continued decline in the number of new building
    ing increased demand as investors rebalanced their portfolios          permits and increased foreclosures heightening the downward


    Yield curves

    Yield levels in USD and EUR tended lower for all tenors. CHF was almost unchanged compared to the end of 4Q07.

    USD                                                 EUR                                     CHF
    %                                                   %                                       %

    5.5                                                 5.0                                      3.8

    4.8                                                 4.8                                      3.6

    4.1                                                 4.6                                      3.4

    3.4                                                 4.4                                      3.2

    2.7                                                 4.2                                      3.0

    2.0                                                 4.0                                      2.8

    Years 0        5       10      15         20   25   Years 0   5   10    15    20    25      Years 0     5     10    15    20    25

    p December 31, 2007 p March 31, 2008

    Source: Datastream, Credit Suisse / IDC
                                                                                                                                   Credit Suisse results     7
                                                                                                                                    Operating environment




Equity markets

Most stock markets showed negative performance in 1Q08. Volatility remained high.

Performance region                                      Performance world banks                             Volatility
Index                                                   Index                                               %

105                                                     100                                                 35

 99                                                      95                                                 30

 93                                                      90                                                 25

 87                                                      85                                                 20

 81                                                      80                                                 15

 75                                                      75                                                 10
2008       January          February          March     2008       January         February         March           2Q07       3Q07         4Q07      1Q08

p EM Asia                  p Europe                     p MSCI World banks (rebased)                        p VDAX
p EM Latin America         p North America              p MSCI World (rebased)                              p CBOEVIX

Source: Bloomberg, MSCI, Credit Suisse / IDC            Source: Datastream, MSCI, Credit Suisse / IDC       Source: Datastream, Credit Suisse / IDC




pressure on prices. The forced selling of structured investment                      cantly expanded its securities lending program and emergency
products by highly leveraged hedge funds created further                             funding facilities. European and other central banks partici-
downward pricing pressure in certain asset classes, particu-                         pated in the provision of additional liquidity to the market, but
larly in March, raising fears about the stability of the financial                   mostly held interest rates steady. These actions helped to sup-
system. Against this backdrop, central banks undertook fur-                          port the US equity markets towards the end of 1Q08.
ther significant action to provide the market with liquidity and                          During 1Q08, the US dollar lost substantial value against
to support the economy. During 1Q08, the Fed cut the federal                         other major currencies due to the deterioration of economic
funds rate by two percentage points to 2.25%, and signifi-                           growth prospects, a higher interest rate differential and
                                                                                     increased inflationary pressure. In the second half of March,
                                                                                     all-time lows were recorded against the euro and the Swiss
Money markets                                                                        franc. In particular, currencies with a current account surplus
                                                                                     such as the Swiss franc and the Japanese yen trended
The Ted spread is still at a level which makes funding for banks                     stronger as they benefited from the weaker equity markets
challenging.                                                                         and increased volatility. Yields on high grade US dollar and
                                                                                     euro debt were lower for all tenors compared to 4Q07,
%
                                                                                     whereas the yield curve for Swiss franc debt moved slightly
5
                                                                                     upwards (see the chart “Yield curves”).
4


3                                                                                    Sector environment

2                                                                                    Some hedge funds and investment banks were seriously chal-
                                                                                     lenged during 1Q08 by the continued dislocation in the mort-
1
                                                                                     gage and credit markets, leading to intense funding pressure
0
                                                                                     and reduced leverage. The forced selling by hedge funds cre-
                 January                     February             March
                                                                                     ated distressed market prices in certain asset classes, trigger-
2008
                                                                                     ing substantial fair value reductions by banks. Highlighting the
p USD 1M LIBOR             p USD 1M T-Bill                                           severity of the current economic environment, on March 14,
                                                                                     Bear Stearns Companies Inc. (Bear Stearns), one of the large
Source: Bloomberg, Credit Suisse / IDC                                               global investment banks, announced that the firm had required
8




    Market volumes (growth in %)

                                                                                                                                                    Global            Europe

                                                                                                                                    QoQ               YoY     QoQ       YoY
    Equity trading volume 1                                                                                                          3.9             13.7     (0.9)     8.0

    Fixed income trading volume 2                                                                                                    5.6             14.9     (3.9)     7.0

    Announced mergers and acquisitions 3                                                                                          (25.8)           (28.7)    (47.4)   (39.1)
    Completed mergers and acquisitions 3                                                                                          (39.1)           (24.9)    (40.6)   (24.7)

    Equity underwriting 3                                                                                                         (55.0)           (44.2)    (71.9)   (66.0)
    Debt underwriting 3                                                                                                           (18.5)           (36.2)     (6.9)   (38.6)

    Syndicated lending – investment grade 3                                                                                       (13.8)           (27.8)        –        –

    1                                                                                 2                                                      3
        LSE, Borsa Italiana, Deutsche Börse, BME, SWX Europe, NYSE Euronext, NASDAQ       Deutsche Börse, Federal Reserve Bank of New York       Dealogic




    emergency financing from the Fed to avoid insolvency. This                               quarter. While challenged by fair value reductions, investment
    was followed by the acquisition of Bear Stearns by JP Morgan                             banks experienced some benefits from solid trading volumes in
    Chase & Co. with additional financial support from the Fed.                              volatile capital and foreign exchange markets. However, under-
    Against that backdrop, banks and regulators increased their                              writing activity was significantly lower compared to 1Q07 and
    focus on capital requirements, more transparent disclosure                               4Q07 due to weaker demand for most fixed income securities
    and the effects of fair value accounting.                                                and weaker equity market valuations. Financial sponsor activity
        Credit spreads on a wide range of financial instruments                              declined substantially due to the cost and availability of credit,
    and markets in the US continued to widen during the quarter.                             and overall levels of announced mergers and acquisitions were
    Commercial mortgage-backed securities (CMBS) and asset-                                  also down, both sequentially and year-on-year.
    backed securities (ABS) spreads widened substantially and the                                With the ongoing, albeit slower, global economic expansion,
    values of the CMBX and ABX indices reached all-time lows,                                the wealth management industry continued its growth trend,
    but recovered somewhat towards quarter end. Investment                                   particularly in Asia, the Middle East and Latin America. Com-
    grade and high yield spreads also widened during the quarter,                            mission income, however, was under pressure due to the
    as did corporate credit spreads. Indices that track the cost of                          weaker US dollar, lower transaction volumes and lower market
    insuring US and European corporate defaults, including the                               levels. Investor sentiment remained defensive due to the uncer-
    CDX and iTraxx indices, doubled to reach all-time highs in the                           tain economic and financial market outlook.
                                                                                                                                                        Credit Suisse results                   9
                                                                                                                                                                       Credit Suisse




Credit Suisse
In 1Q08, we had a net loss of CHF 2,148 million, reflecting significant valuation reductions on structured
products and leveraged loan commitments and securities purchased from our money market funds. Our results
nevertheless demonstrated the benefit of diversification in a more demanding operating environment, as we
achieved solid results in most businesses outside the areas impacted by the dislocation in the mortgage and
credit markets. Private Banking continued to report good results.




Results

                                                                                                                                                   in / end of                   % change

                                                                                                                          1Q08           4Q07          1Q07            QoQ                YoY

Statements of income (CHF million)
Net interest income                                                                                                       2,106         2,156          2,089             (2)                1
Commissions and fees                                                                                                      3,933         4,879          4,977            (19)          (21)
Trading revenues                                                                                                        (1,777)          (720)         3,216            147                 –
Other revenues                                                                                                          (1,167)         1,921          1,338               –                –
Net revenues                                                                                                              3,095         8,236        11,620             (62)          (73)
Provision for credit losses                                                                                                 151            203             53           (26)              185
Compensation and benefits                                                                                                 3,264         3,468          4,950             (6)          (34)
General and administrative expenses                                                                                       1,585         2,022          1,532            (22)                3
Commission expenses                                                                                                         624            694           609            (10)                2
Total other operating expenses                                                                                            2,209         2,716          2,141            (19)                3
Total operating expenses                                                                                                  5,473         6,184          7,091            (11)          (23)
Income/(loss) before taxes                                                                                              (2,529)         1,849          4,476               –                –
Income tax expense/(benefit)                                                                                              (455)          (403)           822             13                 –
Minority interests                                                                                                           74         1,712            925            (96)          (92)
Net income/(loss)                                                                                                       (2,148)            540         2,729               –                –

Earnings per share (CHF)
Basic earnings per share                                                                                                 (2.10)           0.53          2.56               –                –
Diluted earnings per share                                                                                               (2.10)           0.49          2.42               –                –

Return on equity (%)
Return on equity                                                                                                         (20.8)            5.1          25.2               –                –
Return on tangible equity 1                                                                                              (28.1)            6.9          34.3               –                –

BIS statistics
Risk-weighted assets (CHF million) 2                                                                                   301,009       312,068        271,293              (4)               11
Tier 1 capital (CHF million) 2                                                                                          29,361         34,737        35,841             (15)          (18)
Total capital (CHF million) 2                                                                                           41,077         45,102        46,808              (9)          (12)

Tier 1 ratio (%) 2                                                                                                           9.8          11.1          13.2               –                –
Total capital ratio (%) 2                                                                                                  13.6           14.5          17.3               –                –

Number of employees (full-time equivalents)
Number of employees                                                                                                     48,700         48,100        45,300                1                8

1
  Based on tangible shareholders’ equity, which is calculated by deducting goodwill and other intangible assets from total shareholders’ equity. Management believes that the return on
tangible shareholders’ equity is meaningful as it allows consistent measurement of the performance of businesses without regard to whether the businesses were acquired. 2 Under
Basel II from January 1, 2008. Prior period ratios are reported under Basel I and are therefore not comparable. The 4Q07 BIS tier 1 ratio under Basel II would have been 10.0%. For
further information, refer to IV – Treasury and Risk management – Treasury management.
10




     Results summary                                                      At the Annual General Meeting (AGM) on May 4, 2007,
                                                                       the shareholders approved a share buyback program of up to
     In 1Q08, we recorded a net loss of CHF 2,148 million, down        CHF 8 billion, which runs through 2010. During 1Q08, we
     significantly compared to net income of CHF 2,729 million in      repurchased 3.6 million common shares in the amount of CHF
     the strong 1Q07 and net income of CHF 540 million in 4Q07.        206 million. As of April 18, 2008, we had repurchased shares
     Although Private Banking delivered good results in both           worth a total of CHF 4.1 billion, or 52%, of the approved CHF
     Wealth Management and Corporate & Retail Banking, this was        8 billion. We reduced our share repurchase activity in 1Q08
     more than offset by the losses recorded in Investment Banking     and completion of the share buyback program in 2008 will
     and Asset Management, which were both impacted by the             continue to be dependent on market conditions.
     extremely challenging operating environment. We continued to         Our Board of Directors will propose a cash dividend of
     manage down our exposures to those assets most significantly      CHF 2.50 per share for fiscal year 2007 at the AGM on April
     impacted by the dislocation in the mortgage and credit mar-       25, 2008.
     kets. Our results benefited from fair value gains due to the         For further information, refer to IV – Treasury and Risk
     widening credit spreads on Credit Suisse debt. The change in      management – Treasury management.
     income tax benefit reflected the impact of the geographical
     mix of results and the effects of valuation allowances on the
     recognition of deferred tax assets in certain jurisdictions in    Management changes
     1Q08.
         Diluted earnings per share in 1Q08 was a loss of CHF          On April 2, 2008, Robert Shafir was appointed CEO of the
     2.10 compared to income of CHF 2.42 in 1Q07 and CHF               Asset Management division, succeeding David Blumer. Mr.
     0.49 in 4Q07. Return on equity was (20.8)%, compared to           Shafir will continue with his current responsibilities as CEO of
     25.2% in 1Q07 and 5.1% in 4Q07.                                   the Americas region.



     Capital trends                                                    Core Results

     Our capital position remained strong. Our consolidated BIS tier   Core Results include the results of our three segments and
     1 ratio under Basel II was 9.8% as of the end of 1Q08, com-       the Corporate Center. Credit Suisse’s results also include rev-
     pared to 11.1% as of the end of 4Q07 under Basel I. The           enues and expenses from the consolidation of certain private
     4Q07 BIS tier 1 ratio under Basel II would have been 10.0%.       equity funds and other entities in which we do not have a sig-
     The decline was driven by the decrease in our tier 1 capital,     nificant economic interest (SEI) in such revenues and
     mostly offset by the decrease in risk-weighted assets.            expenses. The consolidation of these entities does not affect



     Credit Suisse reporting structure


      Credit Suisse



      Core Results                                                                                                 Minority
                                                                                                                   interests
                                                                                                                   without
                                                                                                                   significant
      Private Banking                            Investment            Asset                 Corporate             economic
                                                 Banking               Management            Center                interest

      Wealth                Corporate &
      Management            Retail Banking
                                                                                                                       Credit Suisse results            11
                                                                                                                                Credit Suisse




Credit Suisse and Core Results

                                                             Core Results           Minority interests without SEI                      Credit Suisse

in the period                             1Q08      4Q07           1Q07      1Q08           4Q07           1Q07       1Q08     4Q07           1Q07

Statements of income (CHF million)
Net revenues                              3,019     6,561        10,669        76          1,675             951      3,095    8,236        11,620
Provision for credit losses                 151       203             53        0                0              0       151      203              53
Compensation and benefits                 3,245     3,457         4,906        19              11             44      3,264    3,468          4,950
General and administrative expenses       1,571     2,004         1,525        14              18               7     1,585    2,022          1,532
Commission expenses                         624       694           609         0                0              0       624      694            609
Total other operating expenses            2,195     2,698         2,134        14              18               7     2,209    2,716          2,141
Total operating expenses                  5,440     6,155         7,040        33              29             51      5,473    6,184          7,091
Income/(loss) before taxes              (2,572)       203         3,576        43           1,646            900     (2,529)   1,849          4,476
Income tax expense/(benefit)              (455)     (403)           822         0                0              0      (455)   (403)            822
Minority interests                           31        66             25       43          1,646             900         74    1,712            925
Net income/(loss)                       (2,148)       540         2,729         0                0              0    (2,148)     540          2,729

Statement of income metrics (%)
Compensation/revenue ratio                107.5      52.7           46.0        –                –              –     105.5     42.1           42.6
Non-compensation/revenue ratio             72.7      41.1           20.0        –                –              –      71.4     33.0           18.4
Cost/income ratio                         180.2      93.8           66.0        –                –              –     176.8     75.1           61.0
Pre-tax income margin                     (85.2)      3.1           33.5        –                –              –     (81.7)    22.5           38.5
Effective tax rate                         17.7    (198.5)          23.0        –                –              –      18.0    (21.8)          18.4
Net income margin                         (71.1)      8.2           25.6        –                –              –     (69.4)     6.6           23.5




net income as the amounts recorded in net revenues and total         Remediation developments on certain internal
operating expenses are offset by corresponding amounts               control matters
reported as minority interests. In addition, our income tax
expense is not affected by these revenues and expenses.              We continue to develop and implement a remediation plan with
These minority interest-related revenues and expenses are            respect to internal controls over the valuation of certain ABS
reported as “Minority interests without SEI” in the “Credit          positions in the collateralized debt obligations (CDO) trading
Suisse and Core Results” table.                                      business within Investment Banking. We have performed alter-
    Corporate Center includes parent company operations              native procedures regarding the valuations of these positions
such as Group financing, expenses for projects sponsored by          in our CDO trading business and are confident that, as a result
the Group and certain expenses that have not been allocated          of the alternative procedures performed, our financial state-
to the segments. In addition, Corporate Center includes con-         ments in this report are fairly presented, in all material
solidation and elimination adjustments required to eliminate         respects, in accordance with accounting principles generally
intercompany revenues and expenses.                                  accepted in the US.
    Certain reclassifications have been made to prior periods
to conform to the current presentation.
12




     Core Results
     The good performance in Private Banking was more than offset by losses recorded in Investment Banking and
     Asset Management, which reflected the extremely challenging operating environment. In 1Q08, we recorded a
     net loss of CHF 2,148 million.




     Results

                                                                                                                                                             in                  % change

                                                                                                                           1Q08           4Q07          1Q07            QoQ            YoY

     Statements of income (CHF million)
     Net interest income                                                                                                   2,076         2,130          2,059             (3)               1
     Commissions and fees                                                                                                  3,918         4,889          4,995           (20)          (22)
     Trading revenues                                                                                                     (1,777)         (720)         3,215           147                 –
     Other revenues                                                                                                       (1,198)           262           400              –                –
     Net revenues 1, 2                                                                                                     3,019         6,561        10,669            (54)          (72)
     Provision for credit losses                                                                                             151            203            53           (26)          185
     Compensation and benefits                                                                                             3,245         3,457          4,906             (6)         (34)
     General and administrative expenses                                                                                   1,571         2,004          1,525           (22)                3
     Commission expenses                                                                                                     624            694           609           (10)                2
     Total other operating expenses                                                                                        2,195         2,698          2,134           (19)                3
     Total operating expenses                                                                                              5,440         6,155          7,040           (12)          (23)
     Income/(loss) before taxes                                                                                          (2,572)            203         3,576              –                –
     Income tax expense/(benefit)                                                                                           (455)         (403)           822             13                –
     Minority interests                                                                                                        31            66            25           (53)            24
     Net income/(loss)                                                                                                   (2,148)            540         2,729              –                –

     Statement of income metrics (%)
     Compensation/revenue ratio                                                                                            107.5           52.7          46.0              –                –
     Non-compensation/revenue ratio                                                                                          72.7          41.1          20.0              –                –
     Cost/income ratio                                                                                                     180.2           93.8          66.0              –                –
     Pre-tax income margin                                                                                                 (85.2)           3.1          33.5              –                –
     Effective tax rate                                                                                                      17.7       (198.5)          23.0              –                –
     Net income margin                                                                                                     (71.1)           8.2          25.6              –                –

     Risk metrics (CHF million)
     Position risk                                                                                                        11,034        11,957        12,290              (8)         (10)
     VaR (average)                                                                                                           194            176            78             10          149

     Number of employees (full-time equivalents)
     Number of employees                                                                                                  48,700        48,100        45,300               1                8

     1
       Includes valuation reductions in Asset Management of CHF 566 million and CHF 774 million in 1Q08 and 4Q07, respectively, from securities purchased from our money market
     funds. 2 Includes valuation reductions in Investment Banking of CHF 5,281 million and CHF 2,436 million in 1Q08 and 4Q07, respectively, relating to leveraged finance and structured
     products.
                                                                                                          Credit Suisse results        13
                                                                                                                      Core Results




Core Results include the results of our integrated banking        Risk trends
organization and exclude revenues and expenses in respect of
minority interests in which we do not have significant eco-       In 1Q08, our overall position risk, measured on the basis of
nomic interest.                                                   our economic risk capital model, decreased 8% compared to
                                                                  4Q07, mainly due to the depreciation of the US dollar against
                                                                  the Swiss franc and a reduction of real estate and structured
Results summary                                                   assets. Average Value-at-Risk (VaR) for the Group’s trading
                                                                  books increased to CHF 194 million compared to CHF 176
In 1Q08, we recorded a net loss of CHF 2,148 million, com-        million in 4Q07, primarily reflecting increased market volatility.
pared to net income of CHF 2,729 million in a strong 1Q07.            For further information on risk trends, refer to IV – Trea-
Net revenues were CHF 3,019 million, down CHF 7,650 mil-          sury and Risk management – Risk management.
lion, or 72%, compared to 1Q07, while total operating
expenses were CHF 5,440 million, down CHF 1,600 million,
or 23%.                                                           Fair valuations
     Our Core Results for 1Q08 reflected the extremely chal-
lenging operating environment arising from the accelerated        Fair value is considered the most relevant measurement for
deterioration of the mortgage and credit markets during the       financial instruments as it provides more transparency than a
period, particularly during March. Net revenues included sig-     historical cost-based model valuation and aligns the account-
nificant valuation reductions on structured products and lever-   ing for these financial instruments with how we manage our
aged loan commitments as well as securities purchased from        business. For further information, refer to Note 1 – Summary
our money market funds. These adverse effects were partly         of significant accounting policies and Note 21 – Fair value of
offset by solid results in most businesses outside structured     financial instruments in V – Condensed consolidated financial
products and leveraged finance in Investment Banking and by       statements – unaudited.
continued strong profitability in Private Banking, demonstrat-        As of the end of 1Q08, 61% and 39% of our total assets
ing the benefit of diversification in a more demanding operat-    and total liabilities, respectively, were measured at fair value.
ing environment. We continued to manage down our expo-            As of the end of 1Q08, 7% and 3% of total assets and total
sures to those assets most significantly impacted by the          liabilities were recorded as level 3, respectively, compared to
dislocation in the mortgage and credit markets. Our results       5% and 3%, respectively, as of the end of 4Q07. As of the
also included fair value gains on Credit Suisse debt, substan-    end of 1Q08, 12% and 7% of those assets and liabilities
tially all of which were recorded in Investment Banking. Total    measured at fair value were recorded as level 3, respectively,
operating expenses decreased mainly due to significantly          compared to 8% and 6%, respectively, as of the end of 4Q07.
lower performance-related compensation, reflecting lower          While the majority of our level 3 assets are recorded in Invest-
results. The change in income tax benefit reflected the impact    ment Banking, some are recorded in Asset Management,
of the geographical mix of results and the effects of valuation   specifically certain private equity investments. The increase in
allowances on the recognition of deferred tax assets in certain   total assets recorded as level 3 was largely driven by the
jurisdictions in 1Q08.                                            transfer of certain CMBS and corporate loan book positions
     Assets under management were CHF 1,380.5 billion as of       from level 2 to level 3, reflecting the limited number of observ-
the end of 1Q08, a decrease of CHF 174.2 billion, or 11%,         able market transactions. Models were used to value these
compared to the end of 4Q07, reflecting adverse foreign           products. Models are developed internally and are reviewed by
exchange-related and market movements. We had net new             functions independent of the front office to ensure they are
asset outflows of CHF 4.2 billion, primarily reflecting inflows   appropriate for current market conditions. The models require
of CHF 17.1 billion in Private Banking, including CHF 13.5        subjective assessment and varying degrees of judgment
billion in Wealth Management and CHF 3.6 billion in Corporate     depending on liquidity, concentration, pricing assumptions and
& Retail Banking, and outflows of CHF 20.2 billion in Asset       risks affecting the specific instrument. The models consider
Management, mainly driven by outflows in Swiss institutional      observable and unobservable parameters in calculating the
advisory and money market assets.                                 value of these products, including certain indices relating to
                                                                  these products, which were extremely volatile during 1Q08,
                                                                  particularly in March. Consideration of these indices has
                                                                  become more significant in our valuation techniques as the
                                                                  market for these products has become less active.
14




     Core Results reporting by division

                                                                   in / end of          % change

                                                  1Q08     4Q07        1Q07      QoQ        YoY

     Net revenues (CHF million)
       Wealth Management                          2,313    2,476       2,379      (7)        (3)
       Corporate & Retail Banking                 1,042    1,002         987       4          6
     Private Banking                              3,355    3,478       3,366      (4)         0
     Investment Banking                            (489)   2,741       6,582       –          –
     Asset Management                                63     354          776     (82)       (92)
     Corporate Center                                90     (12)         (55)      –          –
     Net revenues                                 3,019    6,561     10,669      (54)       (72)

     Provision for credit losses (CHF million)
       Wealth Management                              4       2             3    100         33
       Corporate & Retail Banking                    (9)     (8)         (10)     13        (10)
     Private Banking                                 (5)     (6)          (7)    (17)       (29)
     Investment Banking                             156     210           61     (26)       156
     Asset Management                                 0      (1)            0    100          –
     Corporate Center                                 0       0           (1)      –        100
     Provision for credit losses                    151     203           53     (26)       185

     Total operating expenses (CHF million)
       Wealth Management                          1,449    1,498       1,388      (3)         4
       Corporate & Retail Banking                   587     609          546      (4)         8
     Private Banking                              2,036    2,107       1,934      (3)         5
     Investment Banking                           2,815    3,380       4,531     (17)       (38)
     Asset Management                               531     602          519     (12)         2
     Corporate Center                                58      66           56     (12)         4
     Total operating expenses                     5,440    6,155       7,040     (12)       (23)

     Income before taxes (CHF million)
       Wealth Management                            860     976          988     (12)       (13)
       Corporate & Retail Banking                   464     401          451      16          3
     Private Banking                              1,324    1,377       1,439      (4)        (8)
     Investment Banking                          (3,460)   (849)       1,990     308          –
     Asset Management                              (468)   (247)         257      89          –
     Corporate Center                                32     (78)       (110)       –          –
     Income/(loss) before taxes                  (2,572)    203        3,576       –          –
                                                                                                                                                             Credit Suisse results                     15
                                                                                                                                                                             Core Results




Core Results reporting by region

                                                                                                                                                                 in                    % change

                                                                                                                              1Q08           4Q07           1Q07             QoQ             YoY

Net revenues (CHF million)
Switzerland                                                                                                                   2,563          2,698          2,616              (5)            (2)
EMEA                                                                                                                          1,106          2,471          3,306            (55)           (67)
Americas                                                                                                                    (1,322)            446          3,934                –                 –
Asia Pacific                                                                                                                    582            958            868            (39)           (33)
Corporate Center                                                                                                                 90            (12)           (55)               –                 –
Net revenues                                                                                                                  3,019          6,561        10,669             (54)           (72)

Income before taxes (CHF million)
Switzerland                                                                                                                   1,218          1,239          1,243              (2)            (2)
EMEA                                                                                                                          (496)            630          1,081                –                 –
Americas                                                                                                                    (3,369)        (1,889)          1,168              78                  –
Asia Pacific                                                                                                                     43            301            194            (86)           (78)
Corporate Center                                                                                                                 32            (78)         (110)                –                 –
Income/(loss) before taxes                                                                                                  (2,572)            203          3,576                –                 –

A significant portion of our business requires inter-regional coordination in order to facilitate the needs of our clients. The methodology for allocating our results by region is dependent on
management judgment. For Wealth Management, results are allocated based on the management reporting structure of our relationship managers and the region where the transaction is
recorded. For Investment Banking, trading results are allocated based on where the risk is primarily managed and fee-based results are allocated where the client is domiciled. For Asset
Management, results are allocated based on the location of the investment advisors and sales teams.




     For a description of our valuation techniques, refer to Note                                 Net revenues
33 – Financial instruments in V – Consolidated financial state-                                   In managing the business, revenues are evaluated in the
ments – Credit Suisse Group in the Credit Suisse Annual                                           aggregate, including an assessment of trading gains and
Report 2007. There were no changes to our valuation tech-                                         losses and the related interest income and expense from
niques from those described in our annual report.                                                 financing and hedging positions. For this reason, individual
     For all transfers to level 3, we determine and disclose as                                   revenue categories may not be indicative of performance.
level 3 events any gains or losses as measured from the first
day of the reporting period, even if the transfer occurred sub-                                   YoY: Down 72% from CHF 10,669 million to CHF 3,019 million
sequent to the first day of the reporting period. For all trans-                                  The decrease reflected lower results driven by significant val-
fers out of level 3, we determine and disclose as level 3                                         uation reductions in the structured products and leveraged
events any gains or losses through the last day of the report-                                    finance businesses in Investment Banking as well as on secu-
ing period, even if the transfer occurred prior to the last day of                                rities purchased from our money market funds in Asset Man-
the reporting period. We believe this provides greater trans-                                     agement, partially offset by a good performance in Private
parency over the financial impact of our level 3 assets and lia-                                  Banking. Net revenues benefited from lower funding costs,
bilities. We believe that the range of any valuation uncertainty,                                 including fair value gains due to the widening of credit spreads
in the aggregate, would not be material to our financial condi-                                   on Credit Suisse debt.
tion.                                                                                                  In Private Banking, we achieved strong net revenues in line
     For further information, refer to II – Results by division –                                 with 1Q07. Net interest income increased, mainly due to lower
Investment Banking.                                                                               funding costs, but reflected lower interest income from loans.
                                                                                                  Total non-interest income decreased, mainly due to lower bro-
                                                                                                  kerage and product issuing fees, partially offset by fair value
Results detail                                                                                    gains on a synthetic collateralized loan portfolio in Corporate &
                                                                                                  Retail Banking.
The following provides a comparison of our 1Q08 results ver-                                           Investment Banking was adversely impacted by the contin-
sus 1Q07 (YoY) and versus 4Q07 (QoQ).                                                             ued dislocation in the mortgage and credit markets and had
                                                                                                  negative revenues. We achieved solid results in most busi-
16




     Number of employees by division

                                                                                                                  end of             % change

                                                                                            1Q08       4Q07       1Q07         QoQ       YoY

     Number of employees by division (full-time equivalents)
       Wealth Management                                                                   14,800     14,300     13,600          3         9
       Corporate & Retail Banking                                                           9,000      8,900      8,800          1         2
     Private Banking                                                                       23,800     23,200     22,400          3         6
     Investment Banking                                                                    20,600     20,600     19,000          0         8
     Asset Management                                                                       3,600      3,600      3,300          0         9
     Corporate Center                                                                         700        700        600          0        17
     Number of employees                                                                   48,700     48,100     45,300          1         8




     nesses outside the areas significantly impacted by the market       Provision for credit losses
     dislocation, highlighting the importance of our ongoing rev-        YoY: Up 185% from CHF 53 million to CHF 151 million
     enue diversification efforts. Our combined leveraged finance        The increase was due primarily to higher provisions relating to
     and structured products businesses had net valuation reduc-         a guarantee provided in a prior year to a third-party bank by
     tions of CHF 5,281 million in 1Q08. Fixed income trading            Investment Banking.
     included near-record performance in our global rates and for-       QoQ: Down 26% from CHF 203 million to CHF 151 million
     eign exchange businesses and a strong performance in our            The decrease was due primarily to lower provisions in 1Q08
     emerging markets business. Our corporate lending business           relating to the third-party bank guarantee.
     was impacted by net valuation reductions of CHF 501 million
     on our loan portfolio carried at fair value. Equity trading         Operating expenses
     declined, reflecting losses in equity proprietary trading, partly   Compensation and benefits
     offset by record performance in prime services and strong           Compensation and benefits for a given year reflect the
     results in our global cash businesses. Fixed income and equity      strength and breadth of the business results and staffing lev-
     trading benefited from fair value gains of CHF 1,362 million        els and include fixed components, such as salaries, benefits
     due to widening credit spreads on Credit Suisse debt.               and share-based compensation expense from prior-year
         In Asset Management, results were negatively impacted by        awards, and a variable component. The variable component
     valuation reductions of CHF 566 million on securities pur-          reflects the performance-based compensation for the current
     chased from our money market funds and lower private equity         year to be paid in cash. The portion of the performance-based
     and other investment-related gains, partially offset by lower       compensation for the current year deferred through share-
     funding costs. Net revenues before securities purchased from        based awards is expensed in future periods. For further infor-
     our money market funds and private equity and other invest-         mation, refer to Note 17 – Employee share-based compensa-
     ment-related gains were CHF 648 million, in line with 1Q07.         tion and other benefits in V – Condensed consolidated
     QoQ: Down 54% from CHF 6,561 million to CHF 3,019 million           financial statements – unaudited.
     In Private Banking, net revenues declined. Net interest income      YoY: Down 34% from CHF 4,906 million to CHF 3,245 million
     was stable, as lower funding costs were offset by lower inter-      The decrease was due primarily to significantly lower perform-
     est income from deposits and loans. Total non-interest income       ance-related compensation, mainly reflecting the negative rev-
     decreased, as lower asset-based and transaction-based com-          enues in Investment Banking, partly offset by expenses relat-
     missions and fees were partly offset by the fair value gains on     ing to increased headcount and deferred compensation from
     hedges.                                                             prior-year share awards.
         In Investment Banking, net revenues decreased, driven by        QoQ: Down 6% from CHF 3,457 million to CHF 3,245 million
     significant valuation reductions in our structured products and     The decrease was due primarily to significantly lower perform-
     leveraged finance businesses and lower revenues in most             ance-related compensation, mainly reflecting the negative rev-
     other business areas.                                               enues in Investment Banking. The performance-related com-
         In Asset Management, net revenues were down, mainly             pensation expense in 4Q07 was lower, reflecting the decision
     reflecting the valuation reductions and a reduction in private      to increase deferred share-based compensation for 2007.
     equity and other investment-related gains from the strong 4Q07.
                                                                                                              Credit Suisse results   17
                                                                                                                       Core Results




General and administrative expenses                               Income tax expense/(benefit)
YoY: Up 3% from CHF 1,525 million to CHF 1,571 million            YoY: From CHF 822 million to CHF (455) million
The increase was primarily due to higher non-credit related       Our effective tax rate for 1Q08 was 17.7%, compared to our
expense provisions reflecting releases in 1Q07. Most other        expected tax rate of 21%. The change in income tax benefit
general and administrative expenses declined reflecting the       reflected the impact of the geographical mix of results and the
strengthening of the Swiss franc against major currencies. In     effects of valuation allowances on the recognition of deferred
Investment Banking, in US dollar terms, expenses increased,       tax assets in certain jurisdictions in 1Q08.
reflecting growth in employment levels and client-related busi-   QoQ: From CHF (403) million to CHF (455) million
ness activity. Front and back office infrastructure costs         The change in income tax benefit reflected the impact of the
increased in Private Banking, reflecting the continued interna-   geographical mix of results and the effects, in both 4Q07 and
tional expansion in Wealth Management. Professional fees in       1Q08, of valuation allowances on the recognition of deferred
Asset Management also increased.                                  tax assets in certain jurisdictions.
QoQ: Down 22% from CHF 2,004 million to CHF 1,571 million
The decrease primarily reflected lower professional fees in all   Personnel
businesses, and lower sales and marketing costs in Private        The number of employees increased by 600 full-time equiva-
Banking from the seasonally higher 4Q07. Travel and enter-        lents compared to the end of 4Q07. The increase included
tainment expenses decreased significantly, reflecting the lower   additional relationship managers and support functions in tar-
recoveries in 4Q07 from client-related travel and entertain-      geted markets of Wealth Management. In Investment Bank-
ment expenses in Investment Banking due to delayed or can-        ing, we selectively reduced headcount in certain businesses to
celled transactions.                                              reflect the market conditions.
18




     Key performance indicators
     To benchmark our achievements, we have defined a set of key performance indicators (KPI) for which we have
     targets to be achieved over a three to five year period across market cycles. Although market conditions have
     been extremely challenging, we continue to be confident about our ability to achieve these targets over the
     longer term.




     Performance                                                                                         In 2008, we announced a target for integrated bank
                                                                                                     collaboration revenues in excess of CHF 10 billion annually
     For return on equity, we target an annual rate of return of                                     by 2010. For 1Q08, integrated bank collaboration revenues
     above 20%. In 1Q08, return on equity was (20.8)%.                                               were CHF 1.2 billion.
         For total shareholder return, we target superior share
     price appreciation plus dividends compared to our peer
     group. For 1Q08, total shareholder return was (25.8)%.                                          Efficiency

                                                                                                     In 2008, we announced a target for our Core Results
     Growth                                                                                          cost/income ratio of 65% by 2010. Our Core Results
                                                                                                     cost/income ratio was 180.2% for 1Q08.
     For earnings per share, we target a double-digit annual per-
     centage growth. Diluted earnings per share growth from
     continuing operations was (186.8)% in 1Q08.                                                     Capital strength
         For net new assets, we target a growth rate above 6%.
     In 1Q08, we recorded an annualized net new asset growth                                         For the BIS tier 1 ratio under Basel II, we target a ratio of
     rate of (1.1)% and a rolling four-quarter average growth                                        10%. The BIS tier 1 ratio under Basel II was 9.8% as of
     rate of 0.2%.                                                                                   the end of 1Q08.


                                                                                                                                                                                      in / end of

                                                                                                                                              1Q08            2007          2006           2005

     Performance (%)
     Return on equity (annualized)                                                                                                            (20.8)          18.0           27.5           15.4

     Total shareholder return 1                                                                                                               (25.8)         (17.8)          30.5           44.2

     Growth
     YoY diluted earnings per share growth from continuing operations                                                                       (186.8)           (3.2)          84.4           (7.8)

     Net new asset growth (annualized)                                                                                                         (1.1)            3.4            7.2           5.4
     Net new asset growth (rolling four-quarter average)                                                                                         0.2            3.4            7.2           5.4

     Collaboration revenues (CHF billion)                                                                                                        1.2            5.9            4.9                –

     Efficiency (%)
     Core Results cost/income ratio                                                                                                           180.2           73.1           69.6           81.6

     Capital strength (%)
     BIS tier 1 ratio 2                                                                                                                          9.8          11.1           13.9           11.3

     1
       The total return of an investor is measured by the annualized capital gain/(loss) plus dividends received. 2 Under Basel II from January 1, 2008. Prior period ratios are reported under
     Basel I and are therefore not comparable. The 4Q07 BIS tier 1 ratio under Basel II would have been 10.0%. For further information, refer to IV – Treasury and Risk management –
     Treasury management.
II
Results by division   20 Private Banking
                         22 Wealth Management
                         27 Corporate & Retail Banking

                      30 Investment Banking

                      38 Asset Management
20




     Private Banking
     In 1Q08, Private Banking reported good results despite the challenging operating environment, with net
     revenues of CHF 3,355 million and income before taxes of CHF 1,324 million. Net new assets were strong at
     CHF 17.1 billion.




     Results

                                                                                                          in / end of          % change

                                                                                        1Q08      4Q07        1Q07      QoQ        YoY

     Statements of income (CHF million)
     Net revenues                                                                       3,355     3,478       3,366      (4)         0
     Provision for credit losses                                                          (5)       (6)          (7)    (17)       (29)
     Compensation and benefits                                                          1,161     1,098       1,152       6          1
     General and administrative expenses                                                 666       768          569     (13)        17
     Commission expenses                                                                 209       241          213     (13)        (2)
     Total other operating expenses                                                      875      1,009         782     (13)        12
     Total operating expenses                                                           2,036     2,107       1,934      (3)         5
     Income before taxes                                                                1,324     1,377       1,439      (4)        (8)

     Statement of income metrics (%)
     Compensation/revenue ratio                                                          34.6      31.6        34.2       –          –
     Non-compensation/revenue ratio                                                      26.1      29.0        23.2       –          –
     Cost/income ratio                                                                   60.7      60.6        57.5       –          –
     Pre-tax income margin                                                               39.5      39.6        42.8       –          –

     Utilized economic capital and return
     Average utilized economic capital (CHF million)                                    4,832     4,785       4,557       1          6
     Pre-tax return on average utilized economic capital (%) 1                          110.4     115.9       127.2       –          –

     Balance sheet statistics (CHF million)
     Total assets                                                                     365,249   376,800   342,254        (3)         7
     Net loans                                                                        175,413   175,506   166,273         0          5
     Goodwill                                                                            819       975          791     (16)         4

     Number of employees (full-time equivalents)
     Number of employees                                                               23,800    23,200     22,400        3          6

     1
         Calculated using a return excluding interest costs for allocated goodwill.
                                                                                                                 Results by division      21
                                                                                                                      Private Banking




Results (continued)

                                                                                                        in / end of            % change

                                                                                      1Q08       4Q07       1Q07        QoQ        YoY

Net revenue detail (CHF million)
Net interest income                                                                   1,241     1,230       1,174         1          6
Total non-interest income                                                             2,114     2,248       2,192        (6)        (4)
Net revenues                                                                          3,355     3,478       3,366        (4)         0




Results summary                                                         Assets under management of CHF 899.6 billion were
                                                                    down CHF 95.8 billion, or 9.6%, compared to 4Q07, and
During 1Q08, we continued to face a challenging operating           CHF 74.1 billion, or 7.6%, compared to 1Q07, reflecting
environment characterized by high market volatility, weak           adverse foreign exchange-related and market movements. Net
equity markets, adverse foreign exchange-related movements          new assets were CHF 17.1 billion in 1Q08, slightly down from
in the US dollar and euro and ongoing cautious investor             the high level achieved in 1Q07, with Wealth Management
behavior. Income before taxes was CHF 1,324 million, down           contributing CHF 13.5 billion and Corporate & Retail Banking
CHF 115 million, or 8%, compared to 1Q07. Net revenues              contributing CHF 3.6 billion.
were CHF 3,355 million, in line with 1Q07. Net interest                 Compared to 4Q07, income before taxes was down CHF
income increased, mainly due to lower funding costs, but            53 million, or 4%. Net revenues decreased CHF 123 million,
reflected lower interest income from loans. Total non-interest      or 4%. Net interest income was stable, as lower funding costs
income decreased, mainly due to lower brokerage and product         were mostly offset by lower interest income from deposits and
issuing fees, partially offset by fair value gains on a synthetic   loans. Total non-interest income decreased CHF 134 million,
collateralized loan portfolio in Corporate & Retail Banking. Pro-   or 6%, as lower asset-based and transaction-based commis-
vision for credit losses resulted in net releases of CHF 5 mil-     sions and fees were partly offset by fair value gains on the
lion, compared to net releases of CHF 7 million in 1Q07. Total      synthetic collateralized loan portfolio. Total operating expenses
operating expenses were CHF 2,036 million, up CHF 102 mil-          were down CHF 71 million, or 3%, mainly due to lower gen-
lion, or 5%, compared to 1Q07, mainly driven by higher non-         eral and administrative expenses as well as commission
credit-related provisions and front- and back-office infrastruc-    expenses, offset in part by higher performance-related com-
ture costs from the international expansion in Wealth               pensation.
Management.
22




     Wealth Management
     Despite the adverse operating environment, ongoing market volatility and more cautious client behavior during
     1Q08, we continued to deliver good results and attracted a healthy level of net new assets. We reported
     income before taxes of CHF 860 million and net new assets of CHF 13.5 billion.




     Results

                                                                                                          in / end of          % change

                                                                                        1Q08      4Q07        1Q07      QoQ        YoY

     Statements of income (CHF million)
     Net revenues                                                                       2,313     2,476       2,379      (7)        (3)
     Provision for credit losses                                                           4         2             3    100         33
     Compensation and benefits                                                           806       778          799       4          1
     General and administrative expenses                                                 462       513          405     (10)        14
     Commission expenses                                                                 181       207          184     (13)        (2)
     Total other operating expenses                                                      643       720          589     (11)         9
     Total operating expenses                                                           1,449     1,498       1,388      (3)         4
     Income before taxes                                                                 860       976          988     (12)       (13)

     Statement of income metrics (%)
     Compensation/revenue ratio                                                          34.8      31.4        33.6       –          –
     Non-compensation/revenue ratio                                                      27.8      29.1        24.8       –          –
     Cost/income ratio                                                                   62.6      60.5        58.3       –          –
     Pre-tax income margin                                                               37.2      39.4        41.5       –          –

     Utilized economic capital and return
     Average utilized economic capital (CHF million)                                    1,812     1,724       1,440       5         26
     Pre-tax return on average utilized economic capital (%) 1                          191.7     228.6       277.2       –          –

     Balance sheet statistics (CHF million)
     Total assets                                                                     256,063   268,871   235,972        (5)         9
     Net loans                                                                         75,482    76,265     71,651       (1)         5
     Goodwill                                                                            638       794          610     (20)         5

     Number of employees (full-time equivalents)
     Number of employees                                                               14,800    14,300     13,600        3          9

     Number of relationship managers
     Switzerland                                                                        1,110     1,100       1,080       1          3
     EMEA                                                                               1,270     1,220       1,130       4         12
     Americas                                                                            480       470          410       2         17
     Asia Pacific                                                                        390       350          260      11         50
     Number of relationship managers                                                    3,250     3,140       2,880       4         13

     1
         Calculated using a return excluding interest costs for allocated goodwill.
                                                                                                                                                            Results by division               23
                                                                                                                                                                    Private Banking




Results (continued)

                                                                                                                                                   in / end of                   % change

                                                                                                                          1Q08           4Q07           1Q07            QoQ            YoY

Net revenue detail (CHF million)
Net interest income                                                                                                         641            643            584              0            10
Total non-interest income                                                                                                 1,672          1,833         1,795              (9)           (7)
Net revenues                                                                                                              2,313          2,476         2,379              (7)           (3)

Net revenue detail (CHF million)
Recurring                                                                                                                 1,684          1,766         1,582              (5)             6
Transaction-based                                                                                                           629            710            797           (11)           (21)
Net revenues                                                                                                              2,313          2,476         2,379              (7)           (3)

Gross and net margin on assets under management (bp)
Recurring                                                                                                                     85            83             78              –              –
Transaction-based                                                                                                             32            34             40              –              –
Gross margin                                                                                                                117            117            118              –              –

Net margin (pre-tax)                                                                                                          44            46             49              –              –

Certain reclassifications have been made to prior periods to conform to the current presentation for recurring structured products holding fees previously shown as transaction-based fees.



Operating environment                                                                           lower funding costs and higher recurring commissions and
                                                                                                fees. Transaction-based revenues decreased CHF 168 million,
The operating environment continued to be challenging in                                        or 21%, mainly due to lower brokerage and product issuing
1Q08. Investor sentiment remained defensive due to the                                          fees reflecting the adverse market conditions. Total operating
uncertain economic and financial market outlook. Volatility in                                  expenses were CHF 1,449 million, up CHF 61 million, or 4%.
equity markets persisted, and most major equity indices were                                    Compensation and benefits were flat, as expenses from the
down from the end of 2007. Both the US dollar and euro were                                     ongoing strategic investment in expanding the global franchise
weaker against the Swiss franc during the quarter, with the                                     were mostly offset by lower performance-related compensa-
US dollar reaching historic lows. Adverse foreign exchange-                                     tion. The increase in total other operating expenses was pri-
related and market movements led to a reduction in assets                                       marily driven by the international expansion.
under management. Client activity in the quarter was low, with                                      Assets under management as of the end of 1Q08 were
a good recovery in January from the end of 2007 and weak                                        CHF 749.4 billion, down CHF 89.2 billion, or 10.6%, from the
levels for the remainder of the first quarter, adversely impact-                                end of 4Q07, impacted by adverse foreign exchange-related
ing transaction-based revenues. Investors continued to seek                                     and market movements. Net new assets were CHF 13.5 bil-
safe havens for their assets, favoring money market invest-                                     lion in 1Q08, with strong contributions from Switzerland and
ments and other less volatile products.                                                         the Americas, and a weaker contribution from the Europe,
    Despite the current negative sentiment, the global econ-                                    Middle East and Africa (EMEA) region, also reflecting de-
omy as a whole was relatively healthy, supported by the                                         leveraging by clients in this region. Against 1Q07, assets
momentum in major emerging markets and most of Europe,                                          under management were down CHF 65.4 billion, or 8.0%, pri-
which helped to mitigate the continued slowdown in the US.                                      marily impacted by adverse foreign exchange-related and mar-
                                                                                                ket movements.
                                                                                                    Compared to 4Q07, income before taxes was down CHF
Results summary                                                                                 116 million, or 12%. Net revenues decreased 7%, mainly due
                                                                                                to lower recurring and transaction-based commissions and
Income before taxes was CHF 860 million, down CHF 128                                           fees. Total operating expenses decreased 3% as higher com-
million, or 13%, compared to 1Q07. Net revenues were CHF                                        pensation and benefits were more than offset by lower general
2,313 million, down CHF 66 million, or 3%, compared to                                          and administrative and commission expenses.
1Q07. Recurring revenues, which represented 73% of net
revenues, increased CHF 102 million, or 6%, mainly reflecting
24




     Performance indicators                                              Central and Eastern Europe, Russia and the United Arab
                                                                         Emirates and for equity portfolio management in the UK.
     Pre-tax income margin (KPI)                                         We were also named the “Best Representative Bank” in
     Our target over market cycles is a pre-tax income margin            Egypt by Global Trade Matters, an Egyptian forum on
     above 40%. In 1Q08, the pre-tax income margin was 37.2%,            international trade.
     down 4.3 percentage points from 1Q07 and down 2.2 per-            p We opened an office in Northbrook, Illinois (US) to serve
     centage points from 4Q07.                                           the wealth management needs of the growing number of
                                                                         high-net-worth and ultra-high-net-worth individuals in this
     Net new asset growth rate (KPI)                                     area.
     Our target over market cycles is a growth rate over 6%. We
     achieved an annualized quarterly growth rate of 6.4%. The
     rolling four-quarter average growth rate was 6.0%.                Results detail

     Gross margin                                                      The following provides a comparison of our 1Q08 results ver-
     Our gross margin was 117 basis points, compared to 118            sus 1Q07 (YoY) and versus 4Q07 (QoQ).
     basis points in 1Q07, as revenues declined at a similar rate as
     average assets under management. The recurring margin             Net revenues
     increased seven basis points, benefiting from lower funding       Recurring
     costs and higher commissions and fees, but was offset by the      Recurring revenues arise from recurring net interest income,
     eight basis point decrease in the transaction-based margin,       commissions and fees, including performance-based fees,
     driven mainly by lower brokerage and product issuing fees.        related to assets under management and custody assets, as
     Compared to 4Q07, the gross margin was stable, as the 7%          well as fees for general banking products and services.
     reduction in net revenues was in line with the decrease in        YoY: Up 6% from CHF 1,582 million to CHF 1,684 million
     average assets under management.                                  The increase was mainly attributable to lower funding costs
                                                                       and higher commissions and fees.
                                                                       QoQ: Down 5% from CHF 1,766 million to CHF 1,684 million
     Initiatives and achievements                                      The decrease was mainly due to lower management fees from
                                                                       managed investment products, reflecting the decrease in
     p We were awarded several industry awards in 1Q08,                assets under management, and semi-annual performance fees
       demonstrating the success of our international expansion.       from Hedging-Griffo in 4Q07. Net interest income was flat,
       In Euromoney’s global “Private Banking Survey 2008,” we         as the lower funding costs were offset by lower interest
       were rated best-in-class for private banking services in        income on deposits and loans.



     Pre-tax income margin                                             Net new asset growth

     in %                                                              in %                          Net new asset growth (rolling four-quarter average)
     50                                                                10


     40                                                                 8


     30                                                                 6


     20                                                                 4


     10                                                                 2


      0                                                                 0
            2006                    2007                      2008            2006                         2007                                2008
             1Q    2Q    3Q    4Q    1Q     2Q    3Q     4Q    1Q              1Q     2Q     3Q     4Q      1Q        2Q       3Q       4Q      1Q
                                                                                                   Results by division       25
                                                                                                        Private Banking




Assets under management – Wealth Management

                                                                                          in / end of             % change

                                                                        1Q08     4Q07         1Q07        QoQ         YoY

Assets under management (CHF billion)
Assets under management                                                 749.4    838.6        814.8      (10.6)      (8.0)
  of which discretionary assets                                         161.5    182.7        180.1      (11.6)     (10.3)
  of which advisory assets                                              587.9    655.9        634.7      (10.4)      (7.4)

Assets under management by currency (CHF billion)
USD                                                                     290.5    333.8        343.8      (13.0)     (15.5)
EUR                                                                     224.8    244.3        228.7       (8.0)      (1.7)
CHF                                                                     145.4    156.1        156.7       (6.9)      (7.2)
Other                                                                    88.7    104.4         85.6      (15.0)        3.6
Assets under management                                                 749.4    838.6        814.8      (10.6)      (8.0)

Assets under management by region (CHF billion)
Switzerland                                                             307.6    339.3        330.4       (9.3)      (6.9)
EMEA                                                                    274.7    308.3        292.6      (10.9)      (6.1)
Americas                                                                108.8    122.6        131.9      (11.3)     (17.5)
Asia Pacific                                                             58.3     68.4         59.9      (14.8)      (2.7)
Assets under management                                                 749.4    838.6        814.8      (10.6)      (8.0)

Net new assets by region (CHF billion)
Switzerland                                                               5.3     (0.7)          3.8         –       39.5
EMEA                                                                      2.1      5.3           6.0     (60.4)     (65.0)
Americas                                                                  3.6      1.4           3.3     157.1         9.1
Asia Pacific                                                              2.5      6.0           2.1     (58.3)      19.0
Net new assets                                                           13.5     12.0         15.2       12.5      (11.2)

Growth in assets under management (CHF billion)
Net new assets                                                           13.5     12.0         15.2          –          –
Acquisitions and divestitures                                             0.0     14.1           0.0         –          –
Market movements                                                        (43.2)    (4.5)        13.3          –          –
Currency                                                                (59.5)   (15.5)          2.2         –          –
Other                                                                     0.0     (2.2)        (0.1)         –          –
Total other effects                                                    (102.7)    (8.1)        15.4          –          –
Growth in assets under management                                       (89.2)     3.9         30.6          –          –

Growth in assets under management (annualized) (%)
Net new assets                                                            6.4      5.7           7.8         –          –
Total other effects                                                     (49.0)    (3.9)          7.8         –          –
Growth in assets under management                                       (42.6)     1.8         15.6          –          –

Growth in assets under management (rolling four-quarter average) (%)
Net new assets                                                            6.0      6.4           7.0         –          –
Total other effects                                                     (14.0)     0.5           4.1         –          –
Growth in assets under management (rolling four-quarter average)         (8.0)     6.9         11.1          –          –
26




     Transaction-based                                                 General and administrative expenses
     Transaction-based revenues arise primarily from brokerage         YoY: Up 14% from CHF 405 million to CHF 462 million
     and product issuing fees, client foreign exchange income and      The increase mainly reflected higher non-credit-related provi-
     other transaction-based income.                                   sions and front- and back-office infrastructure costs due to
     YoY: Down 21% from CHF 797 million to CHF 629 million             the international expansion.
     The decrease was mainly driven by lower brokerage and prod-       QoQ: Down 10% from CHF 513 million to CHF 462 million
     uct issuing fees, reflecting the adverse market conditions and    The decrease partially reflected seasonally lower sales and
     cautious client behavior.                                         marketing activities in 1Q08 as well as lower professional
     QoQ: Down 11% from CHF 710 million to CHF 629 million             fees.
     The decrease was mainly driven by lower brokerage and prod-
     uct issuing fees, reflecting the adverse market conditions. The   Personnel
     decrease also reflected real estate gains recorded in 4Q07.       Since 1Q07, we increased headcount by 1,200 and strength-
                                                                       ened our teams mainly in the Americas, Asia Pacific and
     Provision for credit losses                                       EMEA. As of the end of 1Q08, we had 3,250 relationship
     YoY: From CHF 3 million to CHF 4 million                          managers, an increase of 370 from the end of 1Q07, mainly
     Provision for credit losses was stable.                           in EMEA and Asia Pacific. From the end of 4Q07, the number
     QoQ: From CHF 2 million to CHF 4 million                          of relationship managers increased by 110.
     Provision for credit losses was stable.

     Operating expenses
     Compensation and benefits
     YoY: Up 1% from CHF 799 million to CHF 806 million
     Compensation and benefits were flat, mainly reflecting higher
     salaries and related benefits from the higher headcount from
     the international expansion in strategic growth markets and an
     increase in deferred compensation expense for prior-year
     share awards, partially offset by lower performance-related
     compensation due to the lower results in 1Q08.
     QoQ: Up 4% from CHF 778 million to CHF 806 million
     The increase was mainly due to higher performance-related
     compensation, as performance-related compensation expense
     in 4Q07 was lower reflecting the decision to increase deferred
     share-based compensation for 2007. In addition, the increase
     reflected an increase in deferred compensation expense for
     prior-year share awards.
                                                                                                                                                                    Results by division                       27
                                                                                                                                                                                   Private Banking




Corporate & Retail Banking
The sound economic environment in Switzerland continued to provide a stable platform for profitable growth.
We achieved strong net revenues of CHF 1,042 million and income before taxes of CHF 464 million.




Results

                                                                                                                                                           in / end of                          % change

                                                                                                                                  1Q08           4Q07          1Q07                   QoQ              YoY

Statements of income (CHF million)
                                                                                                                                           1
Net revenues                                                                                                                     1,042           1,002           987                      4              6
Provision for credit losses                                                                                                          (9)            (8)          (10)                    13            (10)
Compensation and benefits                                                                                                           355           320            353                     11              1
                                                                                                                                                                          2
General and administrative expenses                                                                                                 204           255            164                   (20)             24
Commission expenses                                                                                                                  28             34             29                  (18)             (3)
Total other operating expenses                                                                                                      232           289            193                   (20)             20
Total operating expenses                                                                                                            587           609            546                    (4)              8
Income before taxes                                                                                                                 464           401            451                     16              3

Statement of income metrics (%)
Compensation/revenue ratio                                                                                                         34.1           31.9          35.8                      –              –
Non-compensation/revenue ratio                                                                                                     22.3           28.8          19.6                      –              –
Cost/income ratio                                                                                                                  56.3           60.8          55.3                      –              –
Pre-tax income margin                                                                                                              44.5           40.0          45.7                      –              –

Utilized economic capital and return
Average utilized economic capital (CHF million)                                                                                  3,020           3,061         3,117                    (1)             (3)
Pre-tax return on average utilized economic capital (%) 3                                                                          61.5           52.5          58.0                      –              –

Balance sheet statistics (CHF million)
Total assets                                                                                                                  109,186          107,929      106,282                       1              3
Net loans                                                                                                                       99,931          99,241       94,622                       1              6
Goodwill                                                                                                                            181           181            181                      0              0

Number of employees (full-time equivalents)
Number of employees                                                                                                              9,000           8,900         8,800                      1              2

1                                                                                             2                                                                               3
  Includes fair value gains on a synthetic collateralized loan portfolio of CHF 64 million.       Includes releases of non-credit-related provisions of CHF 37 million.           Calculated using a
return excluding interest costs for allocated goodwill.
28




     Results (continued)

                                                                                                                                               in / end of               % change

                                                                                                                        1Q08         4Q07          1Q07           QoQ        YoY

     Net revenue detail (CHF million)
     Net interest income                                                                                                 600             587         590            2            2
                                                                                                                                1
     Total non-interest income                                                                                           442             415         397            7         11
     Net revenues                                                                                                       1,042        1,002           987            4            6

     Number of branches
     Number of branches                                                                                                  217             216         216            0            0

     1
         Includes fair value gains on a synthetic collateralized loan portfolio of CHF 64 million.




     Operating environment
                                                                                                     by lower commission and fees. Total operating expenses
                                                                                                     decreased CHF 22 million, or 4%, driven by lower general and
     The economy in Switzerland continued to reflect favorable fun-
                                                                                                     administrative expenses as well as commission expenses, par-
     damentals, but is expected to moderate over 2008. Consumer
                                                                                                     tially offset by higher compensation and benefits.
     confidence remained high in 1Q08, with low unemployment
     and an increase in gross domestic product. Swiss household
     income increased, in real terms, fueling consumer spending
                                                                                                     Performance indicators
     and positively impacting the housing market. Inflation slowly
     increased, but the Swiss National Bank continued to hold key
                                                                                                     Pre-tax income margin (KPI)
     interest rates steady in 1Q08.
                                                                                                     Our target over market cycles is a pre-tax income margin
                                                                                                     above 40%. In 1Q08, our pre-tax income margin was 44.5%,
                                                                                                     compared to 45.7% in 1Q07 and 40.0% in 4Q07.
     Results summary
                                                                                                     Cost/income ratio
     In 1Q08, income before taxes was CHF 464 million, up CHF
                                                                                                     In 1Q08, the cost/income ratio was 56.3%, compared to
     13 million, or 3%, compared to 1Q07. Net revenues were
                                                                                                     55.3% in 1Q07 and 60.8% in 4Q07.
     CHF 1,042 million, up CHF 55 million, or 6%. Net interest
     income was slightly higher, as lower funding costs and higher
     revenues from deposits were partly offset by lower revenues
     from lending. Total non-interest income was up 11%, mainly
                                                                                                     Pre-tax income margin
     due to fair value gains on a synthetic collateralized loan portfo-
     lio (Clock Finance No. 1), partly offset by lower brokerage and
                                                                                                     in %
     product issuing fees. Net releases of provision for credit
                                                                                                     50
     losses were CHF 9 million, versus net releases of CHF 10 mil-
     lion in 1Q07. Total operating expenses were CHF 587 million,                                    40
     up CHF 41 million, or 8%, mainly driven by higher non-credit-
     related provisions, reflecting net releases in 1Q07.                                            30
          Net new assets were CHF 3.6 billion, up slightly from the
     strong level achieved in 1Q07, mainly due to healthy inflows                                    20

     from the small and mid-sized pension fund business and retail
                                                                                                     10
     clients.
          Compared to 4Q07, income before taxes increased CHF
                                                                                                      0
     63 million, or 16%. Net revenues were up CHF 40 million, or                                            2006                           2007                           2008
     4%, mainly driven by the fair value gains on the synthetic col-                                         1Q    2Q     3Q        4Q      1Q      2Q       3Q     4Q     1Q

     lateralized loan portfolio and lower funding costs, offset in part
                                                                                                                     Results by division     29
                                                                                                                           Private Banking




Pre-tax return on average utilized economic capital                  Provision for credit losses
In 1Q08, the pre-tax return on average utilized economic cap-        YoY: From CHF (10) million to CHF (9) million
ital was 61.5%, compared to 58.0% in 1Q07 and 52.5% in               We reported net releases of CHF 9 million, which included
4Q07.                                                                CHF 23 million of provisions and CHF 32 million of releases.
                                                                     The current level of provisions was supported by the continued
                                                                     favorable credit environment.
Initiatives and achievements                                         QoQ: From CHF (8) million to CHF (9) million
                                                                     Provision for credit losses was stable.
p We were awarded several industry awards in 1Q08. Global
  Finance magazine awarded us “Best Bank in Switzerland”             Operating expenses
  in its developed market bank awards. In addition, our              Compensation and benefits
  Global Custody Solutions team was rated “Best Global               YoY: Up 1% from CHF 353 million to CHF 355 million
  Custodian 2008” by the independent firm R&M Consul-                Compensation and benefits were stable.
  tants.                                                             QoQ: Up 11% from CHF 320 million to CHF 355 million
p We were the first major financial services provider in             The increase was mainly due to higher performance-related
  Switzerland to launch a focused initiative to provide greater      compensation, reflecting the decision in 4Q07 to increase
  accessibility to our bank and services for people with             deferred share-based compensation for 2007.
  impaired vision, mobility and hearing.
                                                                     General and administrative expenses
                                                                     YoY: Up 24% from CHF 164 million to CHF 204 million
Results detail                                                       The increase was primarily due to higher non-credit-related
                                                                     provisions, as 1Q07 reflected net releases of non-credit-
The following provides a comparison of our 1Q08 results ver-         related provisions of CHF 37 million, while most other general
sus 1Q07 (YoY) and versus 4Q07 (QoQ).                                and administrative expenses were stable.
                                                                     QoQ: Down 20% from CHF 255 million to CHF 204 million
Net revenues                                                         The decrease mainly reflected lower sales and marketing
Net interest income                                                  activities in 1Q08, compared to the seasonally higher activities
YoY: Up 2% from CHF 590 million to CHF 600 million                   in 4Q07, and lower expenses in most other categories.
The increase reflected lower funding costs and higher rev-
enues from deposits, mainly from higher volumes, partly offset
by lower revenues from lending due to margin pressure.
QoQ: Up 2% from CHF 587 million to CHF 600 million
The increase was due to lower funding costs, partly offset by
lower revenues from deposits.

Total non-interest income
YoY: Up 11% from CHF 397 million to CHF 442 million
The increase was mainly due to CHF 64 million in fair value
gains from widening credit spreads on a synthetic collateral-
ized loan portfolio (Clock Finance No. 1), partially offset by
lower brokerage and product issuing fees.
QoQ: Up 7% from CHF 415 million to CHF 442 million
The increase was mainly due to the fair value gains on the
synthetic collateralized loan portfolio, partially offset by lower
commissions and fees.
30




     Investment Banking
     In 1Q08, we reported a loss before taxes of CHF 3,460 million. Net revenues declined significantly from
     1Q07 to negative CHF 489 million, due to an extremely challenging market environment that resulted in
     further valuation reductions in the structured products and leveraged finance businesses. We reported solid
     results in most other businesses, including record performance in prime services and near-record performance
     in global rates and foreign exchange.




     Results

                                                                                                                                                          in / end of                 % change

                                                                                                                               1Q08          4Q07             1Q07          QoQ            YoY

     Statements of income (CHF million)
     Net revenues                                                                                                              (489)         2,741            6,582             –             –
     Provision for credit losses                                                                                                 156           210               61         (26)           156
     Compensation and benefits                                                                                                1,718          2,080            3,390         (17)           (49)
     General and administrative expenses                                                                                         748           941              827         (21)           (10)
     Commission expenses                                                                                                         349           359              314           (3)            11
     Total other operating expenses                                                                                           1,097          1,300            1,141         (16)             (4)
     Total operating expenses                                                                                                 2,815          3,380            4,531         (17)           (38)
     Income/(loss) before taxes                                                                                             (3,460)          (849)            1,990          308              –

     Statement of income metrics (%)
     Compensation/revenue ratio                                                                                                     –          75.9            51.5             –             –
     Non-compensation/revenue ratio                                                                                                 –          47.4            17.3             –             –
     Cost/income ratio                                                                                                              –        123.3             68.8             –             –
     Pre-tax income margin                                                                                                          –        (31.0)            30.2             –             –

     Utilized economic capital and return
                                                                                                                                                      1
     Average utilized economic capital (CHF million)                                                                         17,080         19,182          19,264          (11)           (11)
     Pre-tax return on average utilized economic capital (%) 2                                                                (80.2)         (16.7)   1
                                                                                                                                                               42.5             –             –

     Balance sheet statistics (CHF million)
     Total assets                                                                                                          997,660 1,140,740 1,146,956                      (13)           (13)
     Net loans                                                                                                               53,516         64,892          46,405          (18)             15
     Goodwill                                                                                                                 6,708          7,465            7,830         (10)           (14)

     Number of employees (full-time equivalents)
     Number of employees                                                                                                     20,600         20,600          19,000              0             8

     1
       Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business (refer to II – Operating and financial review – Credit Suisse – Revaluing of
     certain asset-backed securities positions in the Credit Suisse Annual Report 2007), as we do not consider the impact of these valuation reductions to be material to our economic capital,
     position risk, VaR or related trends. 2 Calculated using a return excluding interest costs for allocated goodwill.
                                                                                                                                                          Results by division               31
                                                                                                                                                            Investment Banking




Results (continued)

                                                                                                                                                          in                   % change

                                                                                                                        1Q08           4Q07           1Q07           QoQ             YoY

Net revenue detail (CHF million)
                                                                                                                                 1              1
Debt underwriting                                                                                                         136            341           725            (60)          (81)
Equity underwriting                                                                                                       172            393           311            (56)          (45)
Total underwriting                                                                                                        308            734         1,036            (58)          (70)
Advisory and other fees                                                                                                   396            670           511            (41)          (23)
Total underwriting and advisory                                                                                           704          1,404         1,547            (50)          (54)
                                                                                                                                 2              2
Fixed income trading                                                                                                   (1,576)         (484)         2,772            226               –
Equity trading                                                                                                          1,379          2,068         2,171            (33)          (36)
Total trading                                                                                                            (197)         1,584         4,943               –              –
                                                                                                                                 3              3
Other                                                                                                                    (996)         (247)             92           303               –
Net revenues                                                                                                             (489)         2,741         6,582               –              –

Average one-day, 99% Value-at-Risk (CHF million)
Interest rate and credit spread                                                                                           145            103             53            41           174
Foreign exchange                                                                                                            37            38             17            (3)          118
Commodity                                                                                                                   42            22             12            91           250
Equity                                                                                                                      78            90             64           (13)            22
Diversification benefit                                                                                                  (115)           (81)          (69)            42             67
                                                                                                                                                4
Average one-day, 99% Value-at-Risk                                                                                         187           172             77              9          143

1
  Includes CHF 18 million of net valuation gains (including hedges) and CHF 16 million of net valuation reductions (including hedges) on ABS CDO origination assets and CHF 67 million
of fee losses and CHF 23 million of fee revenues from the leveraged finance business in 1Q08 and 4Q07, respectively. 2 Includes CHF 848 million and CHF 384 million of net valuation
reductions (including fees, hedges, interest on funded positions and executed transactions) on CMBS, CHF 96 million and CHF 480 million of net valuation reductions (including fees,
hedges and interest on funded positions) on RMBS, CHF 905 million and CHF 54 million of net valuation reductions (including fees, hedges, interest on funded positions, recoveries and
executed transactions) on leveraged finance loan commitments and CHF 2,674 million and CHF 1,325 million of net valuation reductions (including hedges) on ABS CDO warehouse and
synthetic CDO assets in 1Q08 and 4Q07, respectively. 3 Includes CHF 709 million and CHF 200 million of net valuation reductions (including fees, hedges, interest on funded positions,
recoveries and executed transactions) on bridge loan commitments in 1Q08 and 4Q07, respectively. 4 Does not reflect the valuation reductions from revaluing certain ABS positions in
our CDO trading business (refer to II – Operating and financial review – Credit Suisse – Revaluing of certain asset-backed securities positions in the Credit Suisse Annual Report 2007),
as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends.




Operating environment                                                                         credit spreads widened substantially and the values of the
                                                                                              ABX and CMBX indices reached all-time lows during the quar-
The operating environment continued to be extremely chal-                                     ter, but recovered somewhat at quarter end. There was sub-
lenging in 1Q08. Significant issues, including a substantial                                  stantial basis risk between underlying exposures and hedges
decline in liquidity and further indications of a US recession,                               in late March, after the actions by the Fed related to the Bear
weighed heavily on the equity and credit markets. In contrast,                                Stearns sale. Investment grade and high yield spreads also
most economies in Europe and major emerging markets                                           widened during the quarter, as did corporate credit spreads.
largely maintained growth momentum, helping to partially mit-                                 Indices that track the cost of insuring US and European corpo-
igate the adverse impact from the US.                                                         rate defaults, including the CDX and iTraxx indices, doubled to
    The forced selling of structured investment products by                                   reach all-time highs in the quarter.
highly leveraged hedge funds created further downward pric-                                       Equity markets were challenging and most major indices
ing pressure in certain asset classes, raising fears about the                                were down, driven by weaker corporate earnings, ongoing
stability of the financial system. The Fed undertook significant                              concerns about consumer sentiment and a further slowdown in
interest rate cuts and, together with other central banks, pro-                               the housing market, largely due to tightened credit standards
vided emergency funding to support liquidity and the economy.                                 and housing price depreciation in the US. However, towards
In addition, a depreciating US dollar, higher commodity prices                                the end of the quarter, equity markets rebounded slightly due
and further evidence of a weakening US residential housing                                    to some positive corporate news coupled with the Fed’s activ-
market contributed to high market volatility. Credit spreads in                               ities. Equity market volatility, as indicated by the Chicago
the US continued to widen during the quarter. ABS and CMBS                                    Board of Options Exchange Volatility Index (VIX), was up
32




     League table positions

                                                                                                                                                in / end of

                                                                                                                    1Q08      2007       2006       2005

                                                                         1
     League table rank / market share (% – rounded)
     Global fee pool 2                                                                                            7 / 5%     7 / 5%    4 / 6%     7 / 5%

     High yield 3                                                                                                 3 / 9%    2 / 11%   3 / 12%    3 / 11%
     Investment grade 3                                                                                          11 / 4%    13 / 3%   13 / 3%    10 / 4%
     Asset-backed 3                                                                                               8 / 4%    10 / 5%    8 / 5%    – / –%
     Mortgage-backed 3                                                                                           2 / 11%     4 / 7%    5 / 7%    – / –%
     Total debt underwriting 3                                                                                    9 / 5%    11 / 4%    8 / 5%     6 / 5%

     IPO 2                                                                                                       12 / 2%     3 / 8%    4 / 7%    1 / 10%
     Follow-on 2                                                                                                  7 / 5%     7 / 6%    7 / 6%    10 / 3%
     Convertible 2                                                                                               10 / 4%     9 / 5%   11 / 4%    10 / 4%
     Total equity underwriting 2                                                                                  9 / 4%     7 / 6%    7 / 6%     8 / 5%

     Announced mergers and acquisitions 3                                                                        6 / 24%    6 / 20%   6 / 19%   10 / 11%
     Completed mergers and acquisitions 3                                                                        2 / 34%    8 / 18%   8 / 15%    8 / 14%

     1                                          2              3
         Volume-based, except global fee pool       Dealogic       Thomson Financial




     throughout the quarter, and equity and fixed income trading                           Results in 1Q08 were negatively impacted by significantly
     volumes remained high. Debt and equity underwriting volumes                       lower fixed income trading revenues compared to 1Q07.
     were down during the quarter due to decreasing demand for                         These results reflected valuation reductions in both the struc-
     most fixed income securities and weaker equity valuations.                        tured products and leveraged finance businesses. Our corpo-
     Financial sponsor activity declined substantially due to the cost                 rate loan portfolio carried at fair value was also impacted by
     and availability of credit, and overall levels of announced merg-                 valuation reductions. These were partly offset by near-record
     ers and acquisitions were also down, both sequentially and                        performance in our global rates and foreign exchange busi-
     year-on-year.                                                                     nesses, and strong results in emerging markets.
                                                                                           Equity trading declined from a strong 1Q07 due primarily
                                                                                       to weak results in equity proprietary trading and in the convert-
     Results summary                                                                   ibles business. These results were partly offset by a record
                                                                                       performance in prime services and good results in our global
     In 1Q08, the loss before taxes was CHF 3,460 million, com-                        cash businesses. Fixed income and equity trading benefited
     pared to strong income of CHF 1,990 million in 1Q07. Net                          from fair value gains of CHF 1,362 million due to widening
     revenues were negative CHF 489 million, compared to CHF                           credit spreads on Credit Suisse debt. Our underwriting and
     6,582 million in 1Q07, due in large part to the impact of the                     advisory businesses had lower revenues compared to 1Q07 in
     mortgage and credit market dislocations on our fixed income                       line with the decline in market activity.
     businesses. Our combined leveraged finance and structured                             Compared to 4Q07, the loss before taxes was driven by
     products businesses had net valuation reductions of CHF                           lower revenues in most business areas. Total operating
     5,281 million in 1Q08. Total operating expenses were CHF                          expenses were down CHF 565 million, or 17%, due primarily
     2,815 million, down CHF 1,716 million, or 38%, due primarily                      to lower compensation and benefits expenses reflecting the
     to a decrease in compensation and benefits, reflecting the                        negative results.
     negative results.                                                                     The weakening of the average rate of the US dollar against
         We reported solid results in most businesses other than                       the Swiss franc adversely affected revenues and favorably
     structured products and leveraged finance, including record per-                  impacted expenses and losses. For information on foreign cur-
     formance in our prime services and near-record performance in                     rency translation rates, refer to VI – Investor information.
     global rates and foreign exchange businesses. This highlights
     the importance of our ongoing revenue diversification efforts.
                                                                                                                                                               Results by division                    33
                                                                                                                                                                 Investment Banking




Impact on results of the events in the mortgage                                                     Leveraged Finance
and credit markets                                                                                  Our leveraged finance business had net valuation reductions
                                                                                                    (including fees, hedges, interest on funded positions, recover-
In 1Q08, the continued dislocation in the mortgage and credit                                       ies and executed transactions) of CHF 1,681 million in 1Q08.
markets led to significantly lower revenues in our leveraged                                        Our unfunded non-investment grade loan commitments (both
finance and structured products businesses. Our combined                                            leveraged loan and bridge) were CHF 13.0 billion (USD 13.1
leveraged finance and structured products businesses had net                                        billion) as of the end of 1Q08 versus CHF 24.8 billion (USD
valuation reductions of CHF 5,281 million in 1Q08.




Exposures

                                                                                                                                                           end of                     % change

                                                                                                                                                                         1Q08              1Q08
                                                                                                                                                                           vs.               vs.
                                                                                                                             1Q08           4Q07           3Q07          4Q07              3Q07

Origination-related positions (CHF billion) 1
Unfunded commitments                                                                                                           13.0          24.8           52.3           (48)              (75)
Funded positions                                                                                                                7.5          10.0            6.3           (25)                19
Equity bridges                                                                                                                  0.3            0.3           0.6              0              (50)
Leveraged finance 2                                                                                                            20.8          35.1           59.2           (41)              (65)
Commercial mortgages                                                                                                           19.3          25.9           35.9           (25)              (46)

Trading-related book positions (CHF billion) 3
US subprime                                                                                                                     1.1            1.6           3.9           (31)              (72)
US Alt-A                                                                                                                        1.1            2.8           7.0           (61)              (84)
US prime                                                                                                                        0.8            1.4           1.6           (43)              (50)
European/Asian                                                                                                                  2.5            2.9           3.7           (14)              (32)
Residential mortgages                                                                                                           5.5            8.7          16.2           (37)              (66)
ABS and indices                                                                                                                 0.8            3.2           4.3           (75)              (81)
Synthetic ABS CDO’s                                                                                                           (0.2)          (1.2)          (1.9)          (83)              (89)
Cash CDOs                                                                                                                       0.1          (0.4)          (0.1)             –                 –
CDO US subprime                                                                                                                 0.7            1.6           2.3           (56)              (70)

1
  Exposures shown gross. 2 Excluding term financing of CHF 2.2 billion (USD 2.2 billion) and CHF 1.3 billion (USD 1.1 billion) for executed transactions in 1Q08 and 4Q07,
respectively. 3 Exposures shown net.



Net valuation reductions

in                                                                                                                                                        1Q08           4Q07               2007

Net valuation reductions (CHF million)
Leveraged finance 1                                                                                                                                       1,681            231               835
CMBS 2                                                                                                                                                       848           384               554
RMBS 3                                                                                                                                                        96           480               513
CDO 4                                                                                                                                                     2,656          1,341             1,285
Total                                                                                                                                                     5,281          2,436             3,187

1                                                                                               2                                                                                     3
  Including fees, hedges, interest on funded positions, recoveries and executed transactions.       Including fees, hedges, interest on funded positions and executed transactions.       Including
fees, hedges and interest on funded positions. 4 Including hedges.
34




     22.0 billion) as of the end of 4Q07. Our funded non-invest-         1Q08 versus CHF 1.6 billion (USD 1.4 billion) as of the end of
     ment grade loans (both leveraged loan and bridge) were CHF          4Q07.
     7.5 billion (USD 7.6 billion) as of the end of 1Q08 versus CHF          The RMBS and CDO businesses are managed as a trading
     10.0 billion (USD 8.8 billion) as of the end of 4Q07. We have       book on a net basis, and the related gross long and short posi-
     been actively pursuing sales, including syndications, to reduce     tions are monitored as part of our risk management activities
     our funded and unfunded exposure. We have significantly             and price testing procedures.
     reduced our leveraged finance exposures in 1Q08, with                   Our structured products businesses had losses of CHF
     unfunded commitments reduced 48% from the end of 4Q07.              3,388 million in 1Q08 compared to revenues of CHF 493 mil-
     Total exposure has been reduced 41% from the end of 4Q07            lion in 1Q07.
     and 65% from the end of 3Q07. Our funded and unfunded
     loan commitments exposure is mainly to large cap issuers with
     historically stable cash flows and substantial assets. The lever-   Performance indicators
     aged finance business, including both origination and trading
     activities, had losses of CHF 1,646 million in 1Q08 compared        Pre-tax income margin (KPI)
     to revenues of CHF 1,093 million in 1Q07.                           Our target over market cycles is a pre-tax income margin of
                                                                         30% or greater. In 1Q08, the pre-tax income margin was not
     Structured Products                                                 meaningful given our negative revenues, reflecting the
     Our CMBS business had net valuation reductions (including           extremely challenging operating environment. The pre-tax
     fees, hedges, interest on funded positions and executed             income margin was 30.2% in 1Q07 and (31.0)% in 4Q07.
     transactions) of CHF 848 million in 1Q08. Our gross valuation
     reductions (net of fees) were CHF 1,349 million. Our com-           Compensation/revenue ratio
     mercial mortgages gross exposure was CHF 19.3 billion (USD          The 1Q08 compensation/revenue ratio was not meaningful
     19.5 billion) as of the end of 1Q08 versus CHF 25.9 billion         given our negative revenues. The compensation/revenue ratio
     (USD 22.9 billion) as of the end of 4Q07. Total exposure has        was 51.5% in 1Q07 and 75.9% in 4Q07.
     been reduced 25% from the end of 4Q07 and 46% from the
     end of 3Q07. We have been actively selling both loans and           Value-at-Risk
     securities in all regions of the world. In the US, we priced a      The 1Q08 average one-day, 99% VaR was CHF 187 million
     USD 887 million securitization in March, which included USD         compared to CHF 77 million in 1Q07 and CHF 172 million in
     684 million of assets from Credit Suisse. The majority of our       4Q07, primarily reflecting the increase in market volatility. For
     loans are secured by historically stable, high-quality, income-     further information on VaR, refer to IV – Treasury and Risk
     producing real estate to a diverse range of borrowers in            management – Risk management.
     Europe, the US and Asia.
          Our residential mortgage-backed securities (RMBS) busi-
     ness had net valuation reductions (including fees, hedges and       Pre-tax income margin
     interest on funded positions) of CHF 96 million in 1Q08.
     Within our RMBS business, we had net US subprime exposure           in %

     of CHF 1.1 billion (USD 1.1 billion) as of the end of 1Q08          40
     versus CHF 1.6 billion (USD 1.4 billion) as of the end of
                                                                         30
     4Q07. Our other RMBS non-agency exposure was CHF 4.4
     billion (USD 4.5 billion) as of the end of 1Q08 versus CHF          20

     7.1 billion (USD 6.3 billion) as of the end of 4Q07. Of this
                                                                         10
     amount, our US Alt-A exposure was CHF 1.1 billion (USD 1.1
     billion) as of the end of 1Q08 versus CHF 2.8 billion (USD           0
                                                                                                                                    n/m
     2.5 billion) as of the end of 4Q07.                                        -10
                                                                         (30)
          Our ABS CDO origination, warehousing and synthetic busi-
                                                                                -20
     nesses had net valuation reductions (including hedges) of CHF
                                                                                 2006                     2007                     2008
     2,656 million in 1Q08. The net valuation reductions reflected
                                                                                  1Q       2Q   3Q   4Q    1Q    2Q     3Q    4Q    1Q
     substantial basis risk between the underlying exposures and
     hedges in 1Q08. Our CDO business had net subprime expo-             n/m: not meaningful
     sure of CHF 0.7 billion (USD 0.7 billion) as of the end of
                                                                                                                 Results by division    35
                                                                                                                  Investment Banking




Pre-tax return on average utilized economic capital                     ers and acquisitions business. In addition, the magazine
The 1Q08 pre-tax return on average utilized economic capital            recognized two transactions we advised on as “Defence of
was (80.2)% compared to 42.5% in 1Q07 and (16.7)% in                    the year” and “Domestic deal of the year.”
4Q07.                                                               p   Credit Suisse’s Portfolio Transition Services team was
                                                                        named “Transition Manager of the Year” by Asia Asset
                                                                        Management. This award follows a similar nomination by
Significant transactions and achievements                               Global Pensions in 2007. An international judging panel of
                                                                        pension fund advisors selected Credit Suisse for the abil-
We executed a number of significant transactions, reflecting            ity to manage the many layers of risk in a portfolio transi-
the breadth and diversity of our investment banking franchise:          tion as well as for best execution capabilities.
p Debt capital markets: We arranged key financings for a            p   “Deal of the Year” by Energy Risk for Credit Suisse’s proj-
    diverse set of clients, including PPG Industries, Inc. (US          ect finance loan for World GTL Inc. and Petroleum Com-
    coatings and specialty products manufacturer), Kraft                pany of Trinidad and Tobago.
    Foods, Inc. (US packaged food and beverage company),            p   “Deal of the Year” by Investment Dealers Digest for the
    the Republic of the Philippines, AT&T Inc. (US telecommu-           acquisition of TXU Corp. by KKR and Texas Pacific Group,
    nications provider) and GE Capital Corp. (global diversified        KKR’s acquisition of First Data, and Community Health
    financial services company).                                        Systems’ acquisition of Triad Hospitals. Credit Suisse
p Equity capital markets: We executed initial public offerings          acted as advisor on all of these transactions.
    (IPO) for Honghua Group Limited (Chinese oil rig manu-          p   Credit Suisse was recognized as “Best Investment Bank”,
    facturer) and RiskMetrics Group Inc. (US financial and              “Best Bond House” and “Best Equity House” by LatinFi-
    professional services provider), an equity offering for             nance, demonstrating our strong foothold in Latin America.
    Société Générale SA (French financial services company)
    and a rights offering and leveraged loan facility for Primary
    Health Care Limited (Australian medical center operator).       Results detail
p Mergers and acquisitions: We advised on a number of key
    transactions that were announced in 1Q08, including the         The following provides a comparison of our 1Q08 results ver-
    Heineken NV and Carlsberg A/S (Dutch and Danish brew-           sus 1Q07 (YoY) and versus 4Q07 (QoQ).
    ing companies) acquisition of Scottish and Newcastle plc
    (Scottish drinks company), the merger between Bovespa           Net revenues
    Holdings SA (Brazilian equity and derivatives exchange)         Debt underwriting
    and Bolsa de Mercadorias & Futuros-BM&F SA (Brazilian           YoY: Down 81% from CHF 725 million to CHF 136 million
    futures and commodities exchange), Ospraie Manage-              The decrease was primarily due to weaker performance in our
    ment, LLC’s (US asset management firm) acquisition of           leveraged finance business, reflecting significantly lower levels
    the commodity trading and merchandising operations of           of high yield and leveraged lending issuance activity and valu-
    ConAgra Foods, Inc. (US packaged food company), the             ation reductions. The demand for most fixed income securities
    sale by Temasek Holdings Pte Limited (Singapore govern-         declined significantly due to continued weakness in the credit
    ment investment holding company) of Tuas Power Limited          markets.
    (Singapore utility) to China Huaneng Group (Chinese gov-        QoQ: Down 60% from CHF 341 million to CHF 136 million
    ernment investment holding company) and of Sorak Finan-         The decrease primarily reflected weaker performance in our
    cial Holdings (Indonesian bank holding company) to              leveraged finance business due to lower levels of market activ-
    Malayan Banking Berhad (Malaysian bank), and the sale of        ity and the valuation reductions.
    Dyno Nobel Limited (Australian commercial explosives
    company) to Incitec Pivot Limited (Australian fertilizer        Equity underwriting
    manufacturer and supplier).                                     YoY: Down 45% from CHF 311 million to CHF 172 million
                                                                    The decrease was due primarily to significantly lower levels of
We received several industry awards, reflecting our ability to      industry-wide equity issuances, resulting from declines in
serve a range of geographic and product markets.                    equity market valuations in 1Q08 compared with the favorable
p Credit Suisse was recognized as the UK, Italy and Switzer-        equity markets in 1Q07. The number of IPOs declined signifi-
   land “M&A adviser of the year” by Acquisitions Monthly,          cantly and IPO volumes were dominated by one large transac-
   demonstrating our strong European foothold in the merg-          tion.
36




     QoQ: Down 56% from CHF 393 million to CHF 172 million              cash business, driven by higher trading volumes and client flows,
     The decrease was due primarily to a substantially lower level of   as well as the continued strong performance in our Advanced
     industry-wide equity issuance activity compared to 4Q07.           Execution Services business. Prime services achieved record
                                                                        revenues, reflecting strong growth in client balances and new
     Advisory and other fees                                            client mandates. Equity trading also benefited from fair value
     YoY: Down 23% from CHF 511 million to CHF 396 million              gains of CHF 136 million on Credit Suisse debt.
     The decrease was in line with lower levels of global mergers       QoQ: Down 33% from CHF 2,068 million to CHF 1,379 million
     and acquisitions activity, offset in part by improved market       The decrease was driven primarily by the equity proprietary
     share.                                                             trading losses and lower results in our derivatives and cash
     QoQ: Down 41% from CHF 670 million to CHF 396 million              businesses, reflecting the strong results in 4Q07.
     The decrease was driven primarily by the private fund group,
     which raises capital for hedge funds, private equity and real      Other
     estate funds and recorded a decline from its seasonally strong     YoY: From CHF 92 million to CHF (996) million
     results in 4Q07. Revenues also declined due to lower levels of     The decrease was due to valuation reductions on our leveraged
     mergers and acquisitions activity offset in part by improved       finance bridge commitments and lower gains from private equity-
     market share.                                                      related investments not managed as part of Asset Management.
                                                                        QoQ: From CHF (247) million to CHF (996) million
     Fixed income trading                                               The decrease was due to the valuation reductions on our
     YoY: From CHF 2,772 million to CHF (1,576) million                 bridge commitments.
     The decrease was driven primarily by substantial valuation
     reductions in both the structured products and leveraged           Provision for credit losses
     finance businesses. The structured products results reflected      YoY: Up 156% from CHF 61 million to CHF 156 million
     valuation reductions on our commercial loan and CDO assets,        The increase was driven primarily by additional provisions relating
     stemming from further price declines, as seen from the ABX         to a guarantee provided in a prior year to a third-party bank.
     and CMBX indices, and decreased liquidity in the market. The       QoQ: Down 26% from CHF 210 million to CHF 156 million
     leveraged finance losses reflected further valuation reductions    The decrease was due primarily to lower provisions in 1Q08
     on our loan commitments. Our corporate lending business was        relating to the third-party bank guarantee.
     impacted by net valuation reductions of CHF 501 million on
     our loan portfolio carried at fair value. These results were       Operating expenses
     partly offset by near-record performance in our global rates       Compensation and benefits
     and foreign exchange businesses, a strong performance in           YoY: Down 49% from CHF 3,390 million to CHF 1,718 million
     emerging markets and good results in our fixed income propri-      The decrease was due primarily to significantly lower perform-
     etary trading business. The rates business benefited from          ance-related compensation reflecting the negative results, partly
     strong trading activity in the US. The commodities business        offset by an increase in salaries and benefits and increased
     had losses, with losses in the power sector partly offset by       deferred compensation expense from prior-year share awards.
     solid results in the gas sector and from our alliance with Glen-   QoQ: Down 17% from CHF 2,080 million to CHF 1,718 million
     core International. Fixed income trading benefited from fair       The decrease was due primarily to significantly lower perform-
     value gains of CHF 1,226 million on Credit Suisse debt.            ance-related compensation reflecting the negative results. This
     QoQ: From CHF (484) million to CHF (1,576) million                 decrease was partly offset by an increase in salaries and bene-
     The decrease was driven by the valuation reductions in our         fits and increased deferred compensation expense from prior-
     structured products and leveraged finance businesses, partly       year share awards. The performance-related compensation
     offset by improved performance from our high grade, rates          expense in 4Q07 was lower, reflecting the decision to increase
     and emerging markets businesses.                                   deferred share-based compensation for 2007.

     Equity trading
     YoY: Down 36% from CHF 2,171 million to CHF 1,379 million
     The decrease reflected losses in equity proprietary trading com-
     pared to the strong 1Q07. The convertibles business was nega-
     tively impacted by market conditions and had weaker results in
     1Q08. These results were partly offset by good results in our
                                                                                                           Results by division       37
                                                                                                            Investment Banking




General and administrative expenses                             Personnel
YoY: Down 10% from CHF 827 million to CHF 748 million           Headcount was flat from the end of 4Q07. There was a
The decrease was due to the foreign exchange translation        decrease in front office headcount, driven primarily by reductions
impact of the weaker US dollar, partly offset by higher         in certain fixed income businesses reflecting the current market
expense provisions and travel and entertainment expenses. In    conditions. Headcount in our shared services functions
US dollar terms, most general and administrative expenses       increased to maintain appropriate staffing levels. In 2Q08, we
increased, reflecting the growth in employment levels and       have continued to selectively reduce headcount in certain busi-
client-related business activity.                               nesses.
QoQ: Down 21% from CHF 941 million to CHF 748 million
The decrease was due primarily to lower professional fees, as
4Q07 included higher professional fees resulting from delayed
or cancelled transactions related to market conditions. In US
dollar terms, most general and administrative expenses
declined.
38




     Asset Management
     Our results continued to be impacted by the challenging market conditions in 1Q08. The loss before taxes was
     CHF 468 million, including valuation reductions of CHF 566 million from securities purchased from our money
     market funds. Net revenues before these reductions and private equity gains were stable compared to 1Q07.




     Results

                                                                                                                                                     in / end of                   % change

                                                                                                                          1Q08          4Q07             1Q07            QoQ            YoY

     Statements of income (CHF million)
                                                                                                                                   1             1
     Net revenues                                                                                                             63          354              776            (82)          (92)
     Provision for credit losses                                                                                               0           (1)                0           100                 –
     Compensation and benefits                                                                                              304           308              296             (1)                3
     General and administrative expenses                                                                                    151           185              122            (18)            24
     Commission expenses                                                                                                      76          109              101            (30)          (25)
     Total other operating expenses                                                                                         227           294              223            (23)                2
     Total operating expenses                                                                                               531           602              519            (12)                2
     Income/(loss) before taxes                                                                                           (468)         (247)              257             89                 –

     Statement of income metrics (%)
     Compensation/revenue ratio                                                                                                –         87.0             38.1               –                –
     Non-compensation/revenue ratio                                                                                            –         83.1             28.7               –                –
     Cost/income ratio                                                                                                         –        170.1             66.9               –                –
     Pre-tax income margin                                                                                                     –        (69.8)            33.1               –                –

     Utilized economic capital and return
     Average utilized economic capital (CHF million)                                                                      2,023         1,932            1,492               5            36
     Pre-tax return on average utilized economic capital (%) 2                                                            (90.3)        (48.6)            72.6               –                –

     Balance sheet statistics (CHF million)
     Total assets                                                                                                       26,673         27,784          23,016              (4)            16
     Goodwill                                                                                                             2,063         2,442            2,422            (16)          (15)

     Number of employees (full-time equivalents)
     Number of employees                                                                                                  3,600         3,600            3,300               0                9

     1                                                                                                                                                               2
       Includes valuation reductions of CHF 566 million and CHF 774 million in 1Q08 and 4Q07, respectively, from securities purchased from our money market funds.       Calculated using a
     return excluding interest costs for allocated goodwill.
                                                                                                                                                      Results by division         39
                                                                                                                                                           Asset Management




Results (continued)

                                                                                                                                             in / end of               % change

                                                                                                                          1Q08       4Q07        1Q07           QoQ        YoY

Net revenue detail (CHF million)
Equities                                                                                                                    82        106          109          (23)       (25)
Fixed income                                                                                                                79         83           93           (5)       (15)
Securities purchased from our money market funds                                                                          (566)      (774)            –         (27)         –
Other 1                                                                                                                     36         45           74          (20)       (51)
Global investment strategies                                                                                              (369)      (540)         276          (32)         –
Multi-asset class solutions                                                                                                155        187          160          (17)        (3)
Private equity                                                                                                             101         89           44           13        130
Real estate                                                                                                                 64         83           51          (23)        25
Credit strategies                                                                                                           32         33           28           (3)        14
Hedge fund strategies                                                                                                       64         99           85          (35)       (25)
Other 2                                                                                                                     35         98             4         (64)         –
Alternative investment strategies                                                                                          296        402          212          (26)        40
Net revenues before private equity and other investment-related gains                                                       82         49          648           67        (87)
Private equity and other investment-related gains/(losses)                                                                 (19)       305          128            –          –
Net revenues                                                                                                                63        354          776          (82)       (92)

Gross and net margin on assets under management (bp)
Gross margin before private equity and other investment-related gains                                                         5         3           37            –          –
Gross margin on private equity and other investment-related gains/(losses)                                                  (1)        17             8           –          –
Gross margin                                                                                                                  4        20           45            –          –

Net margin (pre-tax)                                                                                                       (29)       (14)          15            –          –

1                                                                                2
    Includes Swiss institutional advisory business and Credit Suisse (Brasil).       Includes Hedging Griffo.




Asset Management structure                                                                             widened and the dislocation spread beyond the mortgage and
                                                                                                       credit markets.
We continue to improve our capabilities and client focus by                                                 Credit markets demonstrated continued weakness as new
strengthening our organization. We have developed a struc-                                             issuances other than money markets remained weak. Rating
ture around our investment strategies, focusing on perform-                                            agencies continued to review mortgage-related products for
ance, profitability and growth, and we are now managing our                                            possible downgrades, placing additional downward pressure
division and reporting our business results as follows:                                                on market valuations. ABX index levels decreased substan-
p Global investment strategies: equity and fixed income                                                tially, which had a negative impact on the valuations of securi-
    investments, including money market investments;                                                   ties purchased from our money market funds, particularly
p Multi-asset class solutions: active asset allocation strate-                                         those issued by structured investment vehicles (SIVs).
    gies and solutions across all asset classes; and                                                        In response to these market conditions, portfolio managers
p Alternative investment strategies: private equity, real                                              and investors maintained a cautious approach by moving into
    estate, single and multi-manager hedge funds and other                                             short-term investments in an effort to capture stable returns,
    alternative investment strategies.                                                                 while sustaining sufficient liquidity and portfolio flexibility and
                                                                                                       limiting credit risk.
                                                                                                            Equity markets around the globe declined. The MSCI World
Operating environment                                                                                  Index fell by almost 10% and the MSCI Emerging Markets
                                                                                                       Index fell by over 11% during the quarter.
The operating environment continued to be challenging in                                                    In general, private equity investments were negatively
1Q08, with asset valuations suffering as credit spreads                                                impacted by the challenging market environment. Also, the
40




     lack of leveraged buyout activity, due to the cost and availabil-         Assets under management were CHF 600.4 billion as of
     ity of credit, resulted in fewer realizations.                       the end of 1Q08, down CHF 90.9 billion, or 13.1%, from the
                                                                          end of 4Q07, and down CHF 108.2 billion, or 15.3%, from
                                                                          the end of 1Q07, reflecting adverse foreign exchange-related
     Results summary                                                      and market movements and net new asset outflows of CHF
                                                                          20.2 billion. Net new asset outflows were primarily driven by
     In 1Q08, the loss before taxes was CHF 468 million compared          outflows from global investment strategies, including CHF
     to income of CHF 257 million in 1Q07, mainly due to valuation        11.7 billion of Swiss institutional advisory assets and CHF 6.7
     reductions of CHF 566 million on securities purchased from           billion of money market assets, partially offset by net new
     our money market funds and significantly lower private equity        assets of CHF 2.2 billion in alternative investments.
     and other investment-related gains, partly offset by lower
     funding costs.
          Net revenues were CHF 63 million, down CHF 713 million,         Securities purchased from our money market
     or 92%, compared to 1Q07. Net revenues before securities             funds
     purchased from our money market funds and private equity
     and other investment-related gains of CHF 648 million were           In the second half of 2007, we repositioned our money market
     stable compared to 1Q07 (refer to the table “Results before          funds by purchasing securities from these funds with the
     securities purchased from our money market funds”). Asset            intent to eliminate SIV, ABS CDO and US subprime exposure.
     management and administrative fees for global investment             The securities transactions were executed in order to address
     strategies were lower compared to 1Q07, reflecting the               liquidity concerns caused by the US market’s extreme condi-
     decline in average assets under management. Asset manage-            tions. We had no legal obligation to purchase these securities.
     ment and administrative fees were stable for multi-asset class       Valuation reductions on these securities were CHF 566 million
     solutions, and increased for alternative investment strategies,      in 1Q08. As of the end of 1Q08, the fair value of our balance
     reflecting the strength of our alternative investments franchise     sheet exposure from these purchased securities was CHF 2.2
     and lower funding costs. Private equity and other investment-        billion, down CHF 1.7 billion, or 43%, from 4Q07 and
     related losses were CHF 19 million, compared to gains of             included CHF 232 million purchased in 1Q08. The majority of
     CHF 128 million in 1Q07, primarily due to unrealized losses on       this exposure is mortgage-backed and CHF 217 million is US
     China-related public company investments. Total operating            subprime, a reduction from CHF 419 million as of the end of
     expenses were CHF 531 million, up 2%, compared to 1Q07.              4Q07.
     Compensation and benefits were up 3%, reflecting increased                Of the CHF 2.2 billion balance sheet exposure, CHF 1.5
     salaries and benefits, due to higher headcount, and deferred         billion were securities issued by SIVs, of which the two largest
     share-based compensation for prior-year awards, offset in part       positions totaled CHF 1.1 billion, with corresponding aggre-
     by lower performance-related compensation. General and               gate unrealized losses of CHF 395 million. Of the remaining
     administrative expenses increased 24%, reflecting higher staff       CHF 422 million issued by SIVs, we had corresponding aggre-
     levels and professional fees, while market-driven commission         gate unrealized losses of CHF 22 million.
     expenses decreased.                                                       ABS exposures totaling CHF 528 million include CHF 292
          The loss before taxes in 1Q08, compared to the CHF 247          million which were received in lieu of payment on a restruc-
     million loss in 4Q07, reflected significantly lower private equity   tured asset-backed vehicle, with a corresponding unrealized
     and other investment-related gains and lower losses on secu-         loss of CHF 66 million. Of the remaining CHF 236 million, the
     rities purchased from our money market funds. Net revenues           largest position totaled CHF 103 million, with a corresponding
     before securities purchased from our money market funds              unrealized loss of CHF 59 million. Of the CHF 133 million
     decreased 44%, primarily reflecting significantly lower private      issued by other ABS vehicles, we had corresponding aggre-
     equity and other investment-related gains and performance            gate unrealized losses of CHF 26 million.
     fees, primarily from Hedging-Griffo, in 4Q07. Total operating             Of the CHF 183 million of corporate securities, most are
     expenses were down CHF 71 million, or 12%, compared to               floating rate notes.
     4Q07, primarily due to lower professional fees, commission
     expenses and performance-related compensation.
                                                                                                                                                        Results by division                41
                                                                                                                                                             Asset Management




Results before securities purchased from our money market funds

                                                                                                                                               in / end of                   % change

                                                                                                                       1Q08          4Q07           1Q07           QoQ              YoY

Statements of income (CHF million)
Net revenues before private equity and other investment-related gains                                                    648           823            648           (21)              0
Private equity and other investment-related gains/(losses)                                                               (19)          305            128              –              –
Net revenues                                                                                                             629         1,128            776           (44)            (19)
Provision for credit losses                                                                                                 0           (1)             0           100               –
Compensation and benefits                                                                                                304           308            296            (1)              3
Total other operating expenses                                                                                           227           294            223           (23)              2
Total operating expenses                                                                                                 531           602            519           (12)              2
Income/(loss) before taxes                                                                                                98           527            257           (81)            (62)

Statement of income metrics (%)
Compensation/revenue ratio                                                                                              48.3          27.3           38.1              –              –
Non-compensation/revenue ratio                                                                                          36.1          26.1           28.7              –              –
Cost/income ratio                                                                                                       84.4          53.4           66.9              –              –
Pre-tax income margin                                                                                                   15.6          46.7           33.1              –              –

Gross and net margin on assets under management (bp)
Gross margin before private equity and other investment-related gains                                                     40             47            37              –              –
Gross margin on private equity and other investment-related gains/(losses)                                                (1)            17             8              –              –
Gross margin                                                                                                              39             64            45              –              –

Net margin (pre-tax)                                                                                                        6            30            15              –              –

Management believes that results before securities purchased from our money market funds is meaningful as it more appropriately reflects the performance of the ongoing business.




Securities purchased from our money market funds

                                                                                      Fair value                                                Matured/                   Fair value
                                                                                         end of                       Gains/                     restruc-        Foreign      end of
                                                                                          4Q07      Purchased        (losses)          Sold         tured      exchange         1Q08

CP, bonds and other securities issued by (CHF million)
Structured investment vehicles                                                            2,481               0        (417)              0         (275)         (254)         1,535
Asset-backed securities vehicles                                                          1,026            108         (151)          (308)          (38)         (109)             528
Corporates                                                                                  414            124              2          (84)         (243)           (30)            183
Total                                                                                     3,921            232         (566)         (392)          (556)         (393)         2,246




Revenue details on securities purchased from our money market funds

                                                                                                                                               in / end of                   % change

                                                                                                                       1Q08          4Q07           1Q07           QoQ              YoY

Revenue details (CHF million)
Realized gains/(losses)                                                                                                  (40)         (101)              –          (60)              –
Unrealized gains/(losses)                                                                                              (526)          (673)              –          (22)              –
Securities purchased from our money market funds                                                                       (566)         (774)               –          (27)              –
42




     Performance indicators                                             p Credit Suisse and Gulf Capital, a leading alternative
                                                                          investment company incorporated in Abu Dhabi, have
     Pre-tax income margin (KPI)                                          reached an agreement, in principle, to enter into a strate-
     Our target over market cycles is a pre-tax income margin             gic alliance that will make growth-oriented investments in
     above 35%. The pre-tax margin was not meaningful for 1Q08            the Gulf region, a key part of our emerging markets plat-
     given our negative results, reflecting the challenging operating     form in the EMEA region.
     environment, and was 33.1% in 1Q07 and (69.8)% in 4Q07.
     The pre-tax margin before securities purchased from our            Our funds and joint ventures made various investments during
     money market funds was 15.6%, compared to 33.1% in                 1Q08, including:
     1Q07 and 46.7% in 4Q07.                                            p an investment in a partial buyout of InterGlobe Technology
                                                                           Quotient, a leading travel and airlines operator in India,
     Net new asset growth rate                                             and the purchase of Tokyo Star Bank through a joint ven-
     In 1Q08, the annualized growth rate was (11.7)%, compared             ture led by Advantage Partners, Japan’s largest domestic
     to 17.3% in 1Q07 and (13.9)% in 4Q07, and the rolling four-           buyout fund;
     quarter average growth rate was (6.4)%, compared to 10.1%          p an investment in the Blackstone and Wellspring purchase
     in 1Q07 and 0.5% in 4Q07.                                             of Performance Food Group, which will combine Perfor-
                                                                           mance Food, a marketer and distributor of food and food-
     Gross margin                                                          related products, with Vistar, a Denver-based foodservice
     The gross margin on assets under management was four basis            distributor; and
     points in 1Q08, compared to 45 basis points in 1Q07 and 20         p an 85% investment in Shanghai Euromate Industrial Park
     basis points in 4Q07. The gross margin on assets under man-           (industrial and office buildings) in China.
     agement before securities purchased from our money market
     funds was 39 basis points in 1Q08, compared to 45 basis
     points in 1Q07 and 64 basis points in 4Q07.                        Results detail

                                                                        The following provides a comparison of our 1Q08 results ver-
     Initiatives and achievements                                       sus 1Q07 (YoY) and versus 4Q07 (QoQ).

     p Through our joint venture in China, we launched a fund           Net revenues
       targeting overseas-listed properties as well as other global     Net revenues before private equity and other investment-
       opportunities for local investors.                               related gains include asset management fees, performance-
                                                                        based fees, fees from fund administration services provided to
                                                                        clients and securities purchased from our money market
     Pre-tax income margin                                              funds. Private equity and other investment-related gains
                                                                        include realized and unrealized gains and losses on invest-
     in %                                                               ments and performance-related carried interest.
     40
                                                                        Global investment strategies
     30
                                                                        YoY: From CHF 276 million to CHF (369) million
     20                                                                 The decrease was mainly due to valuation reductions of CHF
                                                                        566 million from securities purchased from our money market
     10
                                                                        funds. In addition, revenues in equities, fixed income and the
      0                                                                 Swiss institutional advisory business declined in line with sub-
                                                                n/m
        -10
                                                                        stantially lower assets under management.
     (70)
                                                                        QoQ: From CHF (540) million to CHF (369) million
          -20                                                           The result reflected lower valuation reductions on securities
                2006                  2007                    2008      purchased from our money market funds. Equity and fixed
                 1Q    2Q   3Q   4Q    1Q    2Q    3Q    4Q    1Q
                                                                        income revenues declined in line with lower assets under man-
     n/m: not meaningful                                                agement.
                                                                                                                                     Results by division          43
                                                                                                                                          Asset Management




Assets under management – Asset Management

                                                                                                                            in / end of                % change

                                                                                                          1Q08     4Q07         1Q07           QoQ         YoY

Assets under management (CHF billion)
Equities                                                                                                   31.1     38.1         46.3         (18.4)     (32.8)
Fixed income                                                                                              150.7    178.7        227.9         (15.7)     (33.9)
Other 1                                                                                                    92.8    106.6        109.8         (12.9)     (15.5)
Global investment strategies                                                                              274.6    323.4        384.0         (15.1)     (28.5)
Multi-asset class solutions                                                                               165.4    185.9        175.9         (11.0)      (6.0)
Private equity                                                                                             28.9     32.5         26.7         (11.1)        8.2
Real estate                                                                                                35.6     37.5         31.6          (5.1)      12.7
Credit strategies                                                                                          17.7     28.0         21.6         (36.8)     (18.1)
Hedge fund strategies                                                                                      60.8     64.4         62.3          (5.6)      (2.4)
Other 2                                                                                                    17.4     19.6           6.5        (11.2)     167.7
Alternative investment strategies                                                                         160.4    182.0        148.7         (11.9)        7.9
Assets under Management                                                                                   600.4    691.3        708.6         (13.1)     (15.3)
  of which discretionary assets                                                                           520.8    593.3        606.9         (12.2)     (14.2)
  of which advisory assets                                                                                 79.6     98.0        101.7         (18.8)     (21.7)

Assets under management by currency (CHF billion)
USD                                                                                                       150.0    206.4        218.8         (27.3)     (31.4)
EUR                                                                                                        98.8    105.9        105.0          (6.7)      (5.9)
CHF                                                                                                       268.4    297.9        304.4          (9.9)     (11.8)
Other                                                                                                      83.2     81.1         80.4           2.6         3.5
Assets under management                                                                                   600.4    691.3        708.6         (13.1)     (15.3)

Growth in assets under management (CHF billion)
Net new assets                                                                                            (20.2)   (24.9)        29.0             –          –
Acquisitions and divestitures                                                                               0.0     16.6           0.0            –          –
Market movements                                                                                          (34.0)    (2.3)          8.8            –          –
Currency                                                                                                  (37.0)   (12.5)          1.8            –          –
Other                                                                                                       0.3      0.3         (0.9)            –          –
Total other effects                                                                                       (70.7)     2.1           9.7            –          –
Growth in assets under management                                                                         (90.9)   (22.8)        38.7             –          –

Growth in assets under management (annualized) (%)
Net new assets                                                                                            (11.7)   (13.9)        17.3             –          –
Total other effects                                                                                       (40.9)     1.2           5.8            –          –
Growth in assets under management                                                                         (52.6)   (12.7)        23.1             –          –

Growth in assets under management (rolling four-quarter average) (%)
Net new assets                                                                                             (6.4)     0.5         10.1             –          –
Total other effects                                                                                        (8.8)     2.7           4.3            –          –
Growth in assets under management (rolling four-quarter average)                                          (15.2)     3.2         14.4             –          –

Private equity investments (CHF billion)
Private equity investments                                                                                  3.8      3.3           2.9         15.2       31.0

The classification of assets is based upon the classification of the fund manager.
1
  Includes Swiss institutional advisory business and Credit Suisse (Brasil). 2 Includes Hedging Griffo.
44




     Multi-asset class solutions                                     Operating expenses
     YoY: Down 3% from CHF 160 million to CHF 155 million            Compensation and benefits
     The slight decrease was mainly due to lower performance fees    YoY: Up 3% from CHF 296 million to CHF 304 million
     from our alternative and derivative funds and lower assets      The increase mainly reflected increased salaries and benefits
     under management.                                               due to higher headcount and deferred share-based compensa-
     QoQ: Down 17% from CHF 187 million to CHF 155 million           tion for prior-year awards, offset in part by lower performance-
     The decrease reflected lower performance fees and lower         related compensation.
     assets under management.                                        QoQ: Down 1% from CHF 308 million to CHF 304 million
                                                                     The decrease was mainly due to lower performance-related
     Alternative investment strategies                               compensation, partially offset by higher deferred share-based
     YoY: Up 40% from CHF 212 million to CHF 296 million             compensation from prior-year share awards. The performance-
     The increase reflected lower funding costs and increased        related compensation expense in 4Q07 was lower, reflecting
     asset management and administrative fees across investment      the decision to increase deferred share-based compensation
     strategies.                                                     for 2007.
     QoQ: Down 26% from CHF 402 million to CHF 296 million
     This decrease was mainly due to lower semi-annual perform-      General and administrative expenses
     ance fees, including CHF 70 million in 4Q07 from Hedging-       YoY: Up 24% from CHF 122 million to CHF 151 million
     Griffo, and lower asset management and administrative fees      The increase mainly reflected higher staff levels and profes-
     compared to 4Q07, which included strong purchase and sales      sional fees.
     commissions from real estate strategies in Switzerland.         QoQ: Down 18% from CHF 185 million to CHF 151 million
                                                                     The decrease was primarily due to lower professional fees.
     Private equity and other investment-related gains
     YoY: From CHF 128 million to CHF (19) million                   Personnel
     The decrease was primarily due to unrealized losses in China-   In 1Q08, headcount was up 300 from 1Q07. Since 1Q07, we
     related public company investments, reflecting market condi-    have continued to hire investment talent and build product
     tions, and the cost and availability of credit, which limited   development and distribution capabilities.
     leveraged buy-out activity and adversely impacted valuations
     and exit strategies.
     QoQ: From CHF 305 million to CHF (19) million
     The decrease was primarily due to the unrealized losses and
     reflected the strong gains in 4Q07.
III
Overview of Results   46 Results

and Assets under      48 Assets under Management

Management
46




     Results

                                                                                                                                                                                Private Banking

                                                                                                Wealth Management              Corporate & Retail Banking

     in / end of period                                                          1Q08           4Q07          1Q07        1Q08         4Q07        1Q07         1Q08         4Q07        1Q07

     Statements of income (CHF million)
     Net revenues                                                                2,313          2,476         2,379       1,042        1,002         987        3,355       3,478        3,366
     Provision for credit losses                                                       4             2             3         (9)          (8)        (10)          (5)         (6)          (7)
     Compensation and benefits                                                      806           778           799         355          320         353        1,161       1,098        1,152
     General and administrative expenses                                            462           513           405         204          255         164          666         768          569
     Commission expenses                                                            181           207           184           28          34           29         209         241          213
     Total other operating expenses                                                 643           720           589         232          289         193          875       1,009          782
     Total operating expenses                                                    1,449          1,498         1,388         587          609         546        2,036       2,107        1,934
     Income/(loss) before taxes                                                     860           976           988         464          401         451        1,324       1,377        1,439
     Income tax expense/(benefit)                                                      –             –             –           –            –            –           –            –           –
     Minority interests                                                                –             –             –           –            –            –           –            –           –
     Net income/(loss)                                                                 –             –             –           –            –            –           –            –           –

     Statement of income metrics (%)
     Compensation/revenue ratio                                                    34.8          31.4          33.6         34.1        31.9         35.8        34.6         31.6        34.2
     Non-compensation/revenue ratio                                                27.8          29.1          24.8         22.3        28.8         19.6        26.1         29.0        23.2
     Cost/income ratio                                                             62.6          60.5          58.3         56.3        60.8         55.3        60.7         60.6        57.5
     Pre-tax income margin                                                         37.2          39.4          41.5         44.5        40.0         45.7        39.5         39.6        42.8
     Effective tax rate                                                                –             –             –           –            –            –           –            –           –
     Net income margin                                                                 –             –             –           –            –            –           –            –           –

     Utilized economic capital and return
     Average utilized economic capital (CHF million)                             1,812          1,724        1,440        3,020        3,061       3,117        4,832       4,785        4,557

     Pre-tax return on average utilized economic capital (%) 6                   191.7          228.6        277.2          61.5        52.5         58.0       110.4       115.9        127.2
     Post-tax return on average utilized economic capital (%) 6                        –             –             –           –            –            –           –            –           –

     Balance sheet statistics (CHF million)
     Total assets                                                             256,063        268,871      235,972      109,186      107,929     106,282      365,249     376,800      342,254
     Net loans                                                                  75,482        76,265        71,651       99,931      99,241       94,622     175,413     175,506      166,273
     Goodwill                                                                       638           794           610         181          181         181          819         975          791

     Number of employees (full-time equivalents)
     Number of employees                                                        14,800        14,300        13,600        9,000        8,900       8,800      23,800       23,200      22,400

     1
       Core Results include the results of our integrated banking business, excluding revenues and expenses in respect of minority interests without significant economic interest. 2 Includes
     valuation reductions of CHF 5,281 million and CHF 2,436 million in 1Q08 and 4Q07, respectively, relating to leveraged finance and structured products. 3 Includes valuation reductions
     of CHF 566 million and CHF 774 million in 1Q08 and 4Q07, respectively, from securities purchased from our money market funds. 4 Does not reflect the valuation reductions from
     revaluing certain ABS positions in our CDO trading business (refer to II – Operating and financial review – Credit Suisse – Revaluing of certain asset-backed securities positions in the
     Credit Suisse Annual Report 2007), as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends. 5 Includes
     diversification benefit. 6 Calculated using a return excluding interest costs for allocated goodwill.
                                                                                                    Overview of Results and Assets under Management                                 47
                                                                                                                                                                         Results




                                                                                                                                               1
               Investment Banking                   Asset Management                     Corporate Center                       Core Results                        Credit Suisse



  1Q08          4Q07          1Q07     1Q08         4Q07         1Q07      1Q08         4Q07        1Q07          1Q08       4Q07      1Q07          1Q08       4Q07       1Q07


           2             2                     3            3
  (489)         2,741         6,582      63          354          776         90        (12)         (55)         3,019      6,561    10,669         3,095      8,236     11,620
    156           210           61        0           (1)            0         0           0          (1)           151       203        53            151        203         53
  1,718         2,080         3,390     304          308          296         62         (29)         68          3,245      3,457     4,906         3,264      3,468      4,950
    748           941          827      151          185          122          6         110           7          1,571      2,004     1,525         1,585      2,022      1,532
    349           359          314       76          109          101       (10)         (15)        (19)           624       694       609            624        694        609
  1,097         1,300         1,141     227          294          223         (4)         95         (12)         2,195      2,698     2,134         2,209      2,716      2,141
  2,815         3,380         4,531     531          602          519         58          66          56          5,440      6,155     7,040         5,473      6,184      7,091
(3,460)         (849)         1,990    (468)        (247)         257         32        (78)        (110)       (2,572)       203      3,576       (2,529)      1,849      4,476
      –             –             –        –            –            –         –           –            –         (455)      (403)      822          (455)      (403)        822
      –             –             –        –            –            –         –           –            –            31        66        25             74      1,712        925
      –             –             –        –            –            –         –           –            –       (2,148)       540      2,729       (2,148)        540      2,729



      –          75.9          51.5        –         87.0         38.1         –           –            –         107.5       52.7      46.0         105.5       42.1       42.6
      –          47.4          17.3        –         83.1         28.7         –           –            –          72.7       41.1      20.0          71.4       33.0       18.4
      –         123.3          68.8        –        170.1         66.9         –           –            –         180.2       93.8      66.0         176.8       75.1       61.0
      –         (31.0)         30.2        –       (69.8)         33.1         –           –            –         (85.2)       3.1      33.5         (81.7)      22.5       38.5
      –             –             –        –            –            –         –           –            –          17.7    (198.5)      23.0          18.0      (21.8)      18.4
      –             –             –        –            –            –         –           –            –         (71.1)       8.2      25.6         (69.4)       6.6       23.5


                         4                                                          5           5           5
 17,080        19,182        19,264    2,023        1,932        1,492       581         369        1,265        24,494     26,261    26,530        24,494     26,261     26,530

                         4
  (80.2)        (16.7)         42.5   (90.3)       (48.6)         72.6         –           –            –         (41.1)       4.2      55.1         (40.4)      29.2       68.7
      –             –             –        –            –            –         –           –            –         (34.4)       9.1      42.1         (34.4)       9.1       42.1



997,660 1,140,740 1,146,956           26,673       27,784       23,016 (196,388) (201,947) (168,857) 1,193,194 1,343,377 1,343,369 1,207,994 1,360,680 1,359,687
 53,516        64,892        46,405        –            –            –       239         136         153        229,168    240,534   212,831       229,168    240,534    212,831
  6,708         7,465         7,830    2,063        2,442        2,422         –           –            –         9,590     10,882    11,043         9,590     10,882     11,043



 20,600        20,600        19,000    3,600        3,600        3,300       700         700         600         48,700     48,100    45,300        48,700     48,100     45,300
48




     Assets under Management




     Assets under management                                                  Advisory assets include assets placed with us where the
                                                                         client is provided access to investment advice but retains dis-
     Assets under management comprise assets which are placed            cretion over investment decisions.
     with us for investment purposes and include discretionary and            As of the end of 1Q08, assets under management
     advisory counterparty assets.                                       amounted to CHF 1,380.5 billion, down CHF 174.2 billion, or
          Discretionary assets are assets for which the customer         11.2%, compared to the end of 4Q07, and down CHF 171.0
     fully transfers the discretionary power to a Credit Suisse entity   billion, or 11.0%, compared to the end of 1Q07, reflecting
     with a management mandate. Discretionary assets are                 adverse foreign exchange-related and market movements.
     reported in the segment in which the investment advice is pro-      Compared to 4Q07, we had net new asset outflows in Asset
     vided, as well as in the segment in which distribution takes        Management, partially offset by net new asset inflows in Pri-
     place. Any duplication of assets managed on behalf of other         vate Banking.
     segments is eliminated at the Group level.



     Assets under management and client assets

                                                                                                               end of             % change

                                                                                           1Q08      4Q07      1Q07       QoQ         YoY

     Assets under management (CHF billion)
       Wealth Management                                                                   749.4     838.6     814.8     (10.6)      (8.0)
       Corporate & Retail Banking                                                          150.2     156.8     158.9      (4.2)      (5.5)
     Private Banking                                                                       899.6     995.4     973.7      (9.6)      (7.6)
     Asset Management                                                                      600.4     691.3     708.6     (13.1)     (15.3)
     Assets managed on behalf of other segments                                          (119.5)   (132.0)    (130.8)     (9.5)      (8.6)
     Assets under management                                                             1,380.5   1,554.7   1,551.5     (11.2)     (11.0)
       of which discretionary assets                                                       595.9     678.8     688.9     (12.2)     (13.5)
       of which advisory assets                                                            784.6     875.9     862.6     (10.4)      (9.0)

     Client assets (CHF billion)
       Wealth Management                                                                   821.9     928.8     882.4     (11.5)      (6.9)
       Corporate & Retail Banking                                                          222.7     230.6     230.8      (3.4)      (3.5)
     Private Banking                                                                     1,044.6   1,159.4   1,113.2      (9.9)      (6.2)
     Asset Management                                                                      631.1     721.7     742.2     (12.6)     (15.0)
     Assets managed on behalf of other segments                                          (119.5)   (132.0)    (130.8)     (9.5)      (8.6)
     Client assets                                                                       1,556.2   1,749.1   1,724.6     (11.0)      (9.8)
                                                     Overview of Results and Assets under Management      49
                                                                             Assets under Management




Growth in assets under management

in                                                                              1Q08     4Q07     1Q07

Growth in assets under management (CHF billion)
     Wealth Management                                                           13.5     12.0    15.2
     Corporate & Retail Banking                                                   3.6      2.1     3.2
Private Banking                                                                  17.1     14.1    18.4
Asset Management                                                                (20.2)   (24.9)   29.0
Assets managed on behalf of other segments                                       (1.1)     0.3    (4.4)
Net new assets                                                                   (4.2)   (10.5)   43.0

     Wealth Management                                                         (102.7)    (8.1)   15.4
     Corporate & Retail Banking                                                 (10.2)    (2.2)   (0.4)
Private Banking                                                                (112.9)   (10.3)   15.0
Asset Management                                                                (70.7)     2.1     9.7
Assets managed on behalf of other segments                                       13.6      2.1    (1.3)
Other effects                                                                  (170.0)    (6.1)   23.4

     Wealth Management                                                          (89.2)     3.9    30.6
     Corporate & Retail Banking                                                  (6.6)    (0.1)    2.8
Private Banking                                                                 (95.8)     3.8    33.4
Asset Management                                                                (90.9)   (22.8)   38.7
Assets managed on behalf of other segments                                       12.5      2.4    (5.7)
Growth in assets under management                                              (174.2)   (16.6)   66.4

Growth in assets under management (annualized) (%)
     Wealth Management                                                            6.4      5.7     7.8
     Corporate & Retail Banking                                                   9.2      5.3     8.2
Private Banking                                                                   6.9      5.7     7.8
Asset Management                                                                (11.7)   (13.9)   17.3
Assets managed on behalf of other segments                                        3.3     (0.9)   14.1
Net new assets                                                                   (1.1)    (2.7)   11.6

     Wealth Management                                                          (49.0)    (3.9)    7.8
     Corporate & Retail Banking                                                 (26.0)    (5.6)   (1.0)
Private Banking                                                                 (45.4)    (4.2)    6.4
Asset Management                                                                (40.9)     1.2     5.8
Assets managed on behalf of other segments                                      (41.2)    (6.2)    4.2
Other effects                                                                   (43.7)    (1.5)    6.3

     Wealth Management                                                          (42.6)     1.8    15.6
     Corporate & Retail Banking                                                 (16.8)    (0.3)    7.2
Private Banking                                                                 (38.5)     1.5    14.2
Asset Management                                                                (52.6)   (12.7)   23.1
Assets managed on behalf of other segments                                      (37.9)    (7.1)   18.3
Growth in assets under management                                               (44.8)    (4.2)   17.9
50




     Growth in assets under management (continued)

     in                                                                                                            1Q08       4Q07      1Q07

     Growth in assets under management (rolling four-quarter average) (%)
          Wealth Management                                                                                          6.0       6.4        7.0
          Corporate & Retail Banking                                                                                 2.3       2.1        3.1
     Private Banking                                                                                                 5.4       5.7        6.3
     Asset Management                                                                                               (6.4)      0.5       10.1
     Assets managed on behalf of other segments                                                                      2.6       5.4        6.2
     Net new assets                                                                                                  0.2       3.4        8.0




         In Private Banking, assets under management were down              rency and market movements as well as asset inflows and out-
     CHF 95.8 billion, or 9.6%, compared to the end of 4Q07, and            flows due to the acquisition or divestiture of businesses are
     down CHF 74.1 billion, or 7.6%, compared to the end of                 not part of net new assets.
     1Q07. In Asset Management, assets under management                         We recorded net new asset outflows of CHF 4.2 billion in
     decreased CHF 90.9 billion, or 13.1%, compared to the end              1Q08, primarily due to outflows of CHF 20.2 billion in Asset
     of 4Q07, and decreased CHF 108.2 billion, or 15.3%, com-               Management, mainly money market and Swiss institutional
     pared to the end of 1Q07. For further information, refer to II –       advisory assets in global investment strategies, partially offset
     Results by division – Private Banking and – Asset Manage-              by net new assets of CHF 17.1 billion in Private Banking.
     ment.

                                                                            Client assets
     Net new assets
                                                                            Client assets is a broader measure than assets under man-
     Net new assets include individual cash payments, security              agement as it includes transactional and custody accounts
     deliveries and cash flows resulting from loan increases or             (assets held solely for transaction-related or safekeeping/cus-
     repayments. Interest and dividend income credited to clients,          tody purposes) and assets of corporate clients and public insti-
     commissions, interest and fees charged for banking services            tutions used primarily for cash management or transaction-
     are not included as they do not reflect success in acquiring           related purposes.
     assets under management. Furthermore, changes due to cur-
IV
Treasury and Risk   52 Treasury management

management          58 Risk management
52




     Treasury management
     We continued to conservatively manage our liquidity and funding position and our capital remained strong with
     a BIS tier 1 ratio under Basel II of 9.8% as of the end of 1Q08.




     Liquidity and funding management                                            our conservative liquidity and funding management and our
                                                                                 strong capital base. The distribution of our unsecured funding
     Securities for funding and capital purposes are issued primarily            remained consistent with the distribution as of the end of
     by the Bank, our principal operating subsidiary and a US reg-               4Q07, with the majority still from client deposits and long-term
     istrant. The Bank lends funds to its operating subsidiaries and             debt (see the chart “Unsecured funding distribution”). As of
     affiliates on both a senior and subordinated basis, as needed,              the end of 1Q08, our liquid assets included CHF 82 billion of
     the latter typically to meet capital requirements, or as desired            securities and similar assets accepted under existing central
     by management to support business initiatives. For further                  bank facilities. Client deposits, a particularly stable source of
     information, refer to Treasury management in III – Balance                  funds, covered 125% of total loans outstanding as of the end
     sheet, Off-balance sheet, Treasury and Risk in the Credit                   of 1Q08 (see the chart “Funding by asset category”).
     Suisse Annual Report 2007.                                                      The balance sheet as of the end of 1Q08 was impacted by
                                                                                 the depreciation of the US dollar against the Swiss franc.
     Funding sources and uses
     The extremely challenging environment during 1Q08 required                  Liquidity and funding policy
     increased intervention of central banks globally. During 1Q08,              Our liquidity and funding policy is designed to ensure that
     we continued to maintain a comfortable liquidity profile due to             funding is available to meet all obligations in times of stress,



     Unsecured funding distribution                                              Funding by asset category

     as of March 31, 2008                                                        as of March 31, 2008

                                                                                                 Reverse repo 297                                 Repo             276
     Certificates of deposit
                                    9%                         Bank deposits
                                          13%                                                    Liquid                                           Trading
                                                            Fiduciary deposits                   assets       503                                 liabilities      187
                                                5%
                                                        Central bank deposits                                                                     ST liabilities   131
                                                 4%
     Long-term debt                                   Other non-bank deposits                                                                     LT debt          143
                              28%                2%
                                                                                                                                                  Deposits2        273
                                                                                                 Loans1       219
                                                                                                                            125% coverage

                                                            Retail and Private                   Other        189                                 Capital &
                                                       Banking client deposits                                                                    other            198
                                         39%
                                                                                     Assets: CHF 1,208 billion                        Capital and liabilities: CHF 1,208 billion

                                                                                 1                                 2
                                                                                     Excluding loans with banks.       Excluding deposits with banks and certificates of deposit.
                                                                                                 Treasury and Risk management              53
                                                                                                               Treasury management




whether caused by market events or issues specific to Credit         our share repurchase activity in 1Q08 and completion of the
Suisse. Our liquidity risk parameters reflect various liquidity      share buyback program in 2008 will continue to be dependent
stress assumptions, which we believe are conservative and            on market conditions.
which are described in the Credit Suisse Annual Report 2007.            Our Board of Directors will propose a cash dividend of
We manage our liquidity profile at a sufficient level such that,     CHF 2.50 per share for fiscal year 2007 at the AGM on April
in the event that we are unable to access unsecured funding,         25, 2008.
we will have sufficient liquidity to sustain operations for an
extended period of time.                                             Regulatory capital
                                                                     The Basel Committee on Banking Supervision introduced sig-
Debt issuances and redemptions                                       nificant changes to the international capital adequacy stan-
Our primary sources of liquidity are through consolidated enti-      dards known as Basel II. These changes affect both risk-
ties, and funding through non-consolidated special purpose           weighted assets and eligible capital, and the new standard is
entities and asset securitization activity is immaterial. Our cap-   effective for us from January 1, 2008.
ital markets debt issuance includes issues of senior and subor-           Credit Suisse has received approval from the Swiss Fed-
dinated debt in US registered offerings and medium-term note         eral Banking Commission (SFBC) to use the advanced internal
programs, euro market medium-term note programs and a                ratings-based approach (A-IRB) for measuring credit risk and
samurai shelf registration statement in Japan. Substantially all     the advanced measurement approach (AMA) for measuring
of our unsecured senior debt is issued without financial             operational risk. Under the A-IRB for measuring credit risk,
covenants that would increase the cost of financing or acceler-      risk weights are determined by using internal risk parameters
ate the maturity, including adverse changes in our credit rat-       for probability of default, loss given default and transactional
ings, cash flows, results of operations or financial ratios.         maturity. The exposure at default is either derived from bal-
     In 1Q08, the Bank issued CHF 3.1 billion of senior debt,        ance sheet values or by using models.
CHF 2.3 billion of subordinated debt and CHF 1.5 billion of               Under Basel II, operational risk is included in risk-weighted
hybrid tier 1 capital notes. Senior debt of CHF 2.2 billion and      assets. Under the AMA for measuring operational risk, we
CHF 144 million of subordinated debt matured and we                  have identified key scenarios that describe major operational
redeemed CHF 236 million of subordinated debt.                       risks relevant for us using an event model.
                                                                          Eligible capital (tier 1 and tier 2 capital) under Basel II is
                                                                     more affected by changes in deductions to shareholders’
Capital management                                                   equity than under Basel I. Under Basel II, intangible assets
                                                                     (except software) are deducted and a broader scope of secu-
Our capital position remained strong. Our consolidated BIS tier      ritization risk exposures and expected losses in excess of eligi-
1 ratio under Basel II was 9.8% as of the end of 1Q08, com-          ble provisions are deducted (50% from tier 1 capital and 50%
pared to 11.1% as of the end of 4Q07 under Basel I. Our              from tier 2 capital).
economic capital coverage ratio was down six percentage                   For further information, refer to Treasury management in III
points from 157% to 151% due to reduced economic capital             – Balance sheet, Off-balance sheet, Treasury and Risk in the
resources from tier 1 capital.                                       Credit Suisse Annual Report 2007.

Shareholders’ equity                                                 Comparison of Basel I to Basel II as of 4Q07
Our shareholders’ equity decreased from CHF 43.2 billion as          The tier 1 ratio declined from 11.1% under Basel I to 10.0%
of the end of 4Q07 to CHF 37.6 billion as of the end of              under Basel II as of the end of 4Q07, primarily related to
1Q08, primarily due to negative foreign exchange-related             decreased tier 1 capital and increased risk-weighted assets.
movements reflected in other comprehensive income and the            The total capital ratio decreased from 14.5% under Basel I to
loss in 1Q08, partially offset by the effect of share-based          12.9% under Basel II, in line with the impact on tier 1 capital,
compensation.                                                        primarily from increased capital deductions.
     At the AGM on May 4, 2007, the shareholders approved a              Tier 1 and total capital declined CHF 2.5 billion, or 7%,
share buyback program of up to CHF 8 billion, which runs             and CHF 3.5 billion, or 8%, respectively, due to the deduc-
through 2010. During 1Q08, we repurchased 3.6 million com-           tions relating to intangible assets, increased securitization
mon shares in the amount of CHF 206 million. As of April 18,         exposures and expected losses in excess of eligible provisions.
2008, we had repurchased shares worth a total of CHF 4.1                 Total risk-weighted assets increased CHF 11.6 billion, or
billion, or 52%, of the approved CHF 8 billion. We reduced           4%, due to the inclusion of operational risk, offset in part by a
54




     Capital

                                                                                                                                                            end of                    % change

                                                                                                                               1Q08           4Q07          1Q07            QoQ             YoY

     Shares outstanding (million)
     Common shares issued                                                                                                   1,162.5        1,162.4        1,215.5               0            (4)
     Second trading line treasury shares 1                                                                                    (49.7)         (46.1)         (53.8)              8            (8)
     Other treasury shares                                                                                                    (99.3)         (95.7)       (113.2)               4          (12)
     Treasury shares                                                                                                         (149.0)        (141.8)       (167.0)               5          (11)
     Shares outstanding                                                                                                     1,013.5        1,020.6        1,048.5             (1)            (3)

     Par value (CHF)
     Par value 2                                                                                                                0.04           0.04          0.50               0          (92)

     Shareholders’ equity (CHF million)
     Common shares                                                                                                                46             46           607               0          (92)
     Additional paid-in capital                                                                                              25,228         24,553        24,780                3              2
     Retained earnings                                                                                                       31,522         33,670        34,206              (6)            (8)
     Second trading line treasury shares, at cost                                                                            (4,123)        (3,918)       (4,059)               5              2
     Other treasury shares, at cost                                                                                          (5,612)        (5,460)       (6,443)               3          (13)
     Treasury shares, at cost                                                                                                (9,735)        (9,378)      (10,502)               4            (7)
     Accumulated other comprehensive income                                                                                  (9,422)        (5,692)       (5,087)             66             85
     Total shareholders’ equity                                                                                              37,639         43,199        44,004             (13)          (14)
     Goodwill                                                                                                                (9,590)      (10,882)       (11,043)            (12)          (13)
     Other intangible assets                                                                                                   (532)          (444)          (492)            20               8
     Tangible shareholders’ equity 3                                                                                         27,517         31,873        32,469             (14)          (15)

     Book value per share (CHF)
     Total book value per share                                                                                                37.14         42.33          41.97            (12)          (12)
     Goodwill per share                                                                                                       (9.46)        (10.66)       (10.53)            (11)          (10)
     Other intangible assets per share                                                                                        (0.53)         (0.44)         (0.47)            22             13
     Tangible book value per share                                                                                             27.15         31.23          30.97            (13)          (12)

     1
       These shares are repurchased in connection with our share buyback program and will be subsequently cancelled, subject to shareholder approval. 2 On May 4, 2007, the shareholders
     of Credit Suisse Group approved a par value reduction of CHF 0.46 per share which was paid out on July 18, 2007. 3 Tangible shareholders’ equity is calculated by deducting goodwill
     and other intangible assets from total shareholders’ equity. Management believes that the return on tangible shareholders’ equity is meaningful as it allows for the consistent measurement
     of the performance of businesses without regard to whether the businesses were acquired.




     decrease in credit risk. Risk-weighted assets derived from                                     the fair value of Credit Suisse debt, net of tax. The decrease
     market risk and non-counterparty-related risk, primarily fixed                                 in tier 1 capital was partly offset by a reduction in risk-
     assets, were mostly unchanged.                                                                 weighted assets, primarily due to the depreciation of the US
                                                                                                    dollar against the Swiss franc.
     Regulatory capital impact in 1Q08                                                                   Our total capital under Basel II decreased from CHF 41.6
     Our consolidated BIS tier 1 ratio under Basel II was 9.8% as                                   billion as of the end of 4Q07 to CHF 41.1 billion as of the
     of the end of 1Q08, compared to 10.0% as of the end of                                         end of 1Q08, and the total capital ratio was 13.6% as of the
     4Q07. The decrease was driven primarily by a decrease in tier                                  end of 1Q08, an increase from 12.9% as of the end of 4Q07,
     1 capital from CHF 32.2 billion as of the end of 4Q07 to CHF                                   favorably impacted by the reduction in risk-weighted assets.
     29.4 billion as of the end of 1Q08, due to the reduction in                                    The decreased tier 1 capital was partially offset by an increase
     shareholders’ equity and higher other adjustments, partly off-                                 in tier 2 capital, primarily due to the issuance of USD 2 billion
     set by increased capital notes and lower capital deductions.                                   and CHF 350 million of lower tier 2 bonds.
     Capital deductions reflected decreased securitization expo-                                         The business of the Bank is substantially the same as the
     sures and lower expected losses in excess of eligible provi-                                   business of the Group. The trends for the Bank under Basel II
     sions. Other adjustments included the elimination of gains on                                  are generally consistent with those explained for the Group.
                                                                                                                                    Treasury and Risk management                            55
                                                                                                                                                         Treasury management




BIS statistics – Group

                                                                                                                                                                                Basel II
                                                                                                                                                      Basel II     Basel I    % change

end of                                                                                                                                1Q08             4Q07         4Q07           QoQ

Risk-weighted assets (CHF million)
Credit risk                                                                                                                        234,408          252,400      270,266              (7)
Non-counterparty-related risk                                                                                                         6,916           7,304        7,262              (5)
Market risk                                                                                                                          33,957          34,739       34,540              (2)
Operational risk                                                                                                                     25,728          29,197              –          (12)
Risk-weighted assets                                                                                                               301,009          323,640      312,068              (7)

Eligible capital (CHF million)
Total shareholders’ equity                                                                                                           37,639          43,199       43,199            (13)
Goodwill and intangible assets                                                                                                     (10,160)         (11,370)     (10,882)           (11)
Non-cumulative perpetual preferred securities
and capital notes 1                                                                                                                   5,407     2
                                                                                                                                                      4,136        4,136              31
Qualifying minority interests                                                                                                           119               63           79             89
Capital deductions 50% from tier 1                                                                                                     (986)         (2,014)          (71)          (51)
Other adjustments                                                                                                                    (2,658)         (1,774)      (1,724)             50
Tier 1 capital                                                                                                                       29,361          32,240       34,737              (9)
Upper tier 2                                                                                                                          2,462           2,860        2,860            (14)
Lower tier 2                                                                                                                         10,240           8,515        8,565              20
Capital deductions 50% from tier 2                                                                                                     (986)         (2,014)             –          (51)
Tier 2 capital                                                                                                                       11,716           9,361       11,425              25
Investments in non-consolidated banking and
finance participations and credit enhancements                                                                                              –               –       (989)              –
Investments in insurance entities (50%)                                                                                                     –               –         (71)             –
Total capital                                                                                                                        41,077          41,601       45,102              (1)

Capital ratios (%)
Tier 1 ratio                                                                                                                             9.8            10.0         11.1              –
Total capital ratio                                                                                                                     13.6            12.9         14.5              –

1
 The SFBC has advised that Credit Suisse Group may continue to include as tier 1 capital CHF 1.8 billion and CHF 1.8 billion in 1Q08 and 4Q07, respectively, of equity from special
purpose entities which are deconsolidated under FIN 46(R). 2 Hybrid tier 1 capital represented 17.8% of adjusted tier 1 capital as of the end of 1Q08.




BIS statistics – Bank

                                                                                                                                                                   Basel II      Basel I

end of                                                                                                                                                1Q08          4Q07          4Q07

Capital ratios (%)
Tier 1 ratio                                                                                                                                             9.2          9.6          11.0
Total capital ratio                                                                                                                                     13.9         13.2          15.1

The SFBC has advised that the Bank may continue to include as tier 1 capital CHF 4.4 billion and CHF 4.8 billion in 1Q08 and 4Q07, respectively, of equity from special purpose entities
which are deconsolidated under FIN 46(R).
56




     Economic capital

                                                                                                                                                           in / end of                  % change

                                                                                                                                1Q08           4Q07            1Q07           QoQ             YoY

     Economic capital resources (CHF million)
     Tier 1 capital 1                                                                                                         29,361         34,737          35,841            (15)           (18)
     Economic adjustments                                                                                                       6,638          4,768           4,940            39             34
     Economic capital resources                                                                                               35,999         39,505          40,781             (9)           (12)

     Utilized economic capital (CHF million)
     Position risk (99.97% confidence level)                                                                                  19,984         21,660          22,082             (8)           (10)
     Operational risk                                                                                                           2,169          2,469           2,565           (12)           (15)
     Other risks 2                                                                                                              1,666          1,040           1,649            60                  1
                                                                                                                                                       3
     Utilized economic capital                                                                                                23,819         25,169          26,296             (5)            (9)

     Economic capital coverage ratio (%)
                                                                                                                                                       3
     Economic capital coverage ratio                                                                                            151.1          157.0           155.1              –                 –

     Utilized economic capital by segment (CHF million)
       Wealth Management                                                                                                        1,870          1,755           1,448              7            29
       Corporate & Retail Banking                                                                                               2,956          3,083           2,986            (4)            (1)
     Private Banking                                                                                                            4,826          4,838           4,434              0                 9
                                                                                                                                                       3
     Investment Banking                                                                                                       16,208         17,951          19,163            (10)           (15)
     Asset Management                                                                                                           2,020          2,025           1,499              0            35
     Corporate Center                                                                                                             805            358           1,233           125            (35)
     Utilized economic capital – Credit Suisse 4                                                                              23,819         25,169    3
                                                                                                                                                             26,296             (5)            (9)

     Average utilized economic capital by segment (CHF million)
       Wealth Management                                                                                                        1,812          1,724           1,440              5            26
       Corporate & Retail Banking                                                                                               3,020          3,061           3,117            (1)            (3)
     Private Banking                                                                                                            4,832          4,785           4,557              1                 6
                                                                                                                                                       3
     Investment Banking                                                                                                       17,080         19,182          19,264            (11)           (11)
     Asset Management                                                                                                           2,023          1,932           1,492              5            36
     Corporate Center                                                                                                             581            369           1,265            57            (54)
     Average utilized economic capital – Credit Suisse 5                                                                      24,494         26,261    3
                                                                                                                                                             26,530             (7)            (8)

     1
       Under Basel II from January 1, 2008. Prior period ratios are reported under Basel I and are therefore not comparable. 2 Includes owned real estate, expense risk and diversification
     benefit. 3 Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business (refer to II – Operating and financial review – Credit Suisse –
     Revaluing of certain asset-backed securities positions in the Credit Suisse Annual Report 2007), as we do not consider the impact of these valuation reductions to be material to our
     economic capital, position risk, VaR or related trends. 4 Includes a diversification benefit of CHF 40 million as of the end of 1Q08. 5 Includes a diversification benefit of CHF 22 million
     in 1Q08.
                                                                                                 Treasury and Risk management            57
                                                                                                              Treasury management




Economic capital                                                      Utilized economic capital trends
                                                                      Over the course of 1Q08, our utilized economic capital
Overview                                                              decreased 5%. This was mainly due to a reduction in position
Economic capital is used as a consistent and comprehensive            risk, which was driven by the depreciation of the US dollar
tool for risk management, capital management and perform-             against the Swiss franc.
ance measurement. It is called economic capital because it                For Investment Banking, utilized economic capital
measures risks in terms of economic realities rather than reg-        decreased 10%, mainly driven by the depreciation of the US
ulatory or accounting rules. Economic capital is the estimated        dollar against the Swiss franc and reduced real estate and
capital needed to remain solvent and in business, even under          structured assets position risk.
extreme market, business and operational conditions, given                The utilized economic capital for Wealth Management
the institution’s target financial strength (i.e., long-term credit   increased 7%, primarily due to increased private banking cor-
rating).                                                              porate and retail lending position risk. Corporate & Retail
    Under Pillar II of the Basel II framework (also referred to as    Banking decreased 4%, primarily due to reductions in private
the Supervisory Review Process), banks are required to imple-         banking corporate and retail lending position risk. Emerging
ment a robust and comprehensive framework for assessing               markets position risk also decreased, mainly due to the depre-
capital adequacy, defining internal capital targets and ensuring      ciation of the US dollar against the Swiss franc.
that these capital targets are consistent with their overall risk         For Asset Management, utilized economic capital was flat
profile and the current operating environment. Our economic           over the period, mainly due to the depreciation of the US dol-
capital framework has an important role under Pillar II, as it        lar against the Swiss franc, offset by increased equity trading
represents our internal view of the amount of capital required        and investments position risk. Corporate Center utilized eco-
to support our business activities.                                   nomic capital increased 125% due to higher foreign exchange
    Economic capital is calculated separately for position risk,      risk between available and utilized economic capital.
operational risk and other risks. These three risks are used to           Excluding the impact of the depreciation of the US dollar
determine our utilized economic capital and are defined as fol-       against the Swiss franc, utilized economic capital would have
lows:                                                                 increased 5% compared to 4Q07.
p Position risk: the level of unexpected loss in economic                 For further information on our position risk, excluding the
    value on our portfolio of positions over a one-year horizon       impact of the depreciation of the US dollar against the Swiss
    which is exceeded with a given, small probability (1% for         franc, particularly its impact on Investment Banking, refer to –
    risk management purposes; 0.03% for capital manage-               Risk management – Key position risk trends.
    ment purposes);
p Operational risk: the level of loss resulting from inade-           Capital adequacy trends
    quate or failed internal processes, people and systems or         The economic capital coverage ratio decreased six percentage
    from external events over a one-year horizon which is             points from 157% to 151% over 1Q08, primarily due to
    exceeded with a given, small probability (0.03%). Estimat-        reduced economic capital resources from tier 1 capital. This
    ing this type of economic capital is inherently more subjec-      was partially offset by reduced utilized economic capital from
    tive, and reflects both quantitative tools as well as senior      the decrease in position risk, which was driven by the depreci-
    management judgment; and                                          ation of the US dollar against the Swiss franc, and an increase
p Other risks: the risks not captured by the above, for exam-         in economic adjustments, primarily due to the reversal of cer-
    ple, expense risk and owned real estate risk. Expense risk        tain Basel II deductions not considered relevant for economic
    is defined as the difference between expenses and rev-            capital purposes and increased unrealized gains, including
    enues in a severe market event, exclusive of the elements         those on Credit Suisse debt. Our coverage ratio remained
    captured by position risk and operational risk. Owned real        above our target band of 100% to 140%.
    estate risk is defined as the risk associated with the build-
    ings we own.

The economic capital methodology is regularly reviewed in
order to ensure that the model remains relevant as markets
and business strategies evolve. There were no material
changes to the economic capital methodology in 1Q08.
58




     Risk management
     In 1Q08, our overall 99% position risk, measured on the basis of the economic capital model, decreased 8%
     compared to 4Q07, mainly driven by the depreciation of the US dollar against the Swiss franc. Excluding the
     foreign exchange impact, position risk increased 3%. Average one-day, 99% VaR for our trading books
     increased 10% to CHF 194 million, mainly due to the increase in observed market volatility. We reported a net
     new provision for credit losses of CHF 151 million in 1Q08.




     Position risk

                                                                                                                                                            end of                    % change
                                                                                                                                                     1
                                                                                                                               1Q08          4Q07           1Q07            QoQ            YoY

     Position risk (CHF million)
     Fixed income trading 2                                                                                                   2,295          2,280          2,416               1            (5)
     Equity trading and investments                                                                                           2,645          2,911          2,563             (9)             3
     Private banking corporate and retail lending                                                                             2,298          2,286          2,096               1            10
     International lending and counterparty exposures                                                                         3,857          3,870          3,992               0            (3)
     Emerging markets                                                                                                         1,750          2,040          1,539           (14)             14
     Real estate and structured assets 3                                                                                      2,453          3,252          4,164           (25)           (41)
     Simple sum across risk categories                                                                                       15,298         16,639        16,770              (8)            (9)
     Diversification benefit                                                                                                 (4,264)       (4,682)        (4,480)             (9)            (5)
     Position risk (99% confidence level
     for risk management purposes)                                                                                           11,034         11,957        12,290              (8)          (10)

     Position risk (99.97% confidence level
     for capital management purposes)                                                                                        19,984         21,660        22,082              (8)          (10)

     Prior balances have been restated for methodology changes in order to show meaningful trends.
     1
       Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business (refer to II – Operating and financial review – Credit Suisse – Revaluing of
     certain asset-backed securities positions in the Credit Suisse Annual Report 2007), as we do not consider the impact of these valuation reductions to be material to our economic capital,
     position risk, VaR or related trends. 2 This category comprises fixed income trading, foreign exchange and commodity exposures. 3 This category comprises the real estate investments
     of the Group, commercial and residential real estate, ABS exposure and real estate acquired at auction.
                                                                                                                                       Treasury and Risk management                              59
                                                                                                                                                                 Risk management




Economic capital                                                                                Key position risk trends

Economic capital represents our core Group-wide risk man-                                       During 1Q08, position risk decreased 8% compared to 4Q07.
agement tool. It represents good current market practice for                                    This was mainly due to the depreciation of the US dollar
measuring and reporting all quantifiable risks; it measures risk                                against the Swiss franc and a reduction in real estate and
in terms of economic realities rather than regulatory or                                        structured assets. Excluding the impact from the depreciation
accounting rules. The development and usage of economic                                         of the US dollar against the Swiss franc, position risk
capital methodologies and models have increased across the                                      increased 3% compared to 4Q07, mainly from Investment
industry over recent years. In the absence of a standardized                                    Banking. International lending and counterparty exposures
industry-wide approach, comparisons across firms may not be                                     increased due to higher derivative exposures. Fixed income
meaningful. The economic capital methodology is regularly                                       trading increased due to higher commodity and interest rate
reviewed in order to ensure that the model remains relevant as                                  exposures and equity trading and investments increased due
markets and business strategies evolve. There were no mate-                                     to higher equity investment exposures. This was partially offset
rial changes to the economic capital methodology in 1Q08.                                       by a significant reduction in real estate and structured assets
     Position risk, which is a component of the economic capi-                                  due to the securitization, sale and valuation reductions of com-
tal framework, represents the level of unexpected loss in eco-                                  mercial real estate exposures and increased short residential
nomic value on our portfolio of positions over a one-year hori-                                 real estate exposures.
zon which is exceeded with a given small probability (1% for                                        Compared to the end of 1Q07, position risk decreased
risk management purposes; 0.03% for capital management                                          10%, primarily due to the depreciation of the US dollar against
purposes). For further details of the economic capital frame-                                   the Swiss franc. Excluding the impact from the depreciation of
work, refer to III – Balance sheet, Off-balance sheet, Treasury                                 the US dollar against the Swiss franc, position risk increased
and Risk – Treasury management in the Credit Suisse Annual                                      8%. International lending and counterparty exposures
Report 2007.                                                                                    increased due to higher derivatives exposures within Invest-
                                                                                                ment Banking. Equity trading and investments increased due



One-day, 99% VaR

                                                                                                     Interest rate                                                   Diversi-
                                                                                                              and       Foreign                                      fication
in / end of period                                                                                  credit spread     exchange Commodity                Equity       benefit          Total

1Q08 (CHF million)
Average                                                                                                       152             37             42             78         (115)               194
Minimum                                                                                                       129             23             30             52              –1             147
Maximum                                                                                                       185             57             60           104               –1             254
End of period                                                                                                 146             23             39             54         (109)               153

4Q07 (CHF million)
Average 2                                                                                                     110             38             22             89           (83)              176
Minimum 2                                                                                                      87             21             16             72              –1             144
Maximum 2                                                                                                     131             58             36           122               –1             216
                2
End of period                                                                                                 124             48             31             91           (78)              216

1Q07 (CHF million)
Average                                                                                                        53             17             12             64           (68)               78
Minimum                                                                                                        46               8             8             51              –1              56
Maximum                                                                                                        67             31             20             84              –1              96
End of period                                                                                                  55             21             10             77           (67)               96

1
  As the maximum and minimum occur on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit. 2 Does not reflect the valuation
reductions from revaluing certain ABS positions in our CDO trading business (refer to II – Operating and financial review – Credit Suisse – Revaluing of certain asset-backed securities
positions in the Credit Suisse Annual Report 2007), as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related
trends.
60




     to increased private equity and hedge fund exposures. Emerg-                                 reduced commercial real estate, residential real estate and
     ing markets increased, primarily in Asia, Eastern Europe, the                                asset-backed exposures.
     Middle East and the Americas, and fixed income trading                                           As part of our overall risk management, we hold a portfolio
     increased due to higher commodity and interest rate expo-                                    of hedges. Hedges are impacted by market movements similar
     sures. The increase in private banking corporate and retail                                  to other trading securities, and may result in gains or losses on
     lending was due to increased residential mortgage and leasing                                the hedges which offset losses or gains on the portfolio they
     exposures. These increases were partially offset by a decrease                               were designed to hedge.
     in real estate and structured assets due to significantly


     Daily VaR

     CHF m

          270

          225

          180

          135

          90

          45

              0
                              1Q07                           2Q07                                3Q07                             4Q07 1)                             1Q08

              One-day VaR (99%)
     1)
       Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business (refer to II – Operating and financial review – Credit Suisse - Revaluing
     of certain asset-backed securities positions in the Credit Suisse Annual Report 2007), as we do not consider the impact of these valuation reductions to be material to our economic
     capital, position risk, VaR or related trends.




     Actual daily trading revenues

     Days

     20




     15




     10




          5




          0

     CHF m          < (100)       (100)–(75)   (75)–(50)   (50)–(25)       (25)–0         0–25          25–50          50–75        75–100        100–125        125–150         >150


     p in 1Q08         p in 4Q071)      p in 1Q07                                                                                        Excludes Clariden Leu and Neue Aargauer Bank
     1)
       Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business (refer to II – Operating and financial review – Credit Suisse - Revaluing
     of certain asset-backed securities positions in the Credit Suisse Annual Report 2007), as we do not consider the impact of these valuation reductions to be material to our economic
     capital, position risk, VaR or related trends.
                                                                                                 Treasury and Risk management             61
                                                                                                                   Risk management




Market risk                                                           enues. Actual daily trading revenues are compared with VaR
                                                                      calculated using a one-day holding period. A backtesting
We primarily assume trading risks through the trading activities      exception occurs when the trading revenues loss exceeds the
in Investment Banking. The other divisions also engage in             daily VaR estimate. We had nine backtesting exceptions during
trading activities, but to a much lesser extent. Trading risks        1Q08, two of which resulted from the revaluing of certain ABS
are measured using VaR along with a number of other risk              positions in our CDO trading business in February, as
measurement tools. VaR is the potential loss in fair value of         explained in the Credit Suisse Annual Report 2007, and the
trading positions due to adverse market movements over a              remainder due to the volatile market conditions, particularly in
defined time horizon and for a specified confidence level. VaR        March. The histogram entitled “Actual daily trading revenues”
relies on historical data and is considered a useful tool for esti-   reflects the distribution of actual daily trading revenues during
mating potential loss in normal markets in which there are no         1Q08, 4Q07 and 1Q07. The width of this distribution provides
abrupt changes in market conditions. Other tools are more             another indication of the day-to-day risk in our trading activi-
appropriate for modeling the impact from severe market condi-         ties.
tions.                                                                    We assume non-trading interest rate risks through interest
    In order to show the aggregate market risk in our trading         rate-sensitive positions originated by Private Banking and risk-
books, the table entitled “Daily VaR” shows the trading-related       transferred to Global Treasury, money market and funding
market risk on a consolidated basis. It shows ten-day VaR             activities by Global Treasury and the deployment of our consol-
scaled to a one-day holding period and is based on a 99%              idated equity as well as other activities, including market-mak-
confidence level. This means that there is a 1-in-100 chance          ing and trading activities involving banking book positions at
of incurring a daily mark-to-market trading loss that is at least     the divisions. Savings accounts and many other retail banking
as large as the reported VaR.                                         products have no contractual maturity date or direct market-
    Our average one-day, 99% VaR during 1Q08 was CHF                  linked interest rate and are risk-transferred from Private Bank-
194 million compared to CHF 176 million during 4Q07 and               ing to Global Treasury on a pooled basis using replicating port-
CHF 78 million during 1Q07. The 10% increase in average               folios (approximating the re-pricing behavior of the underlying
VaR from 4Q07 was due to the inclusion of increased market            product). Global Treasury, as well as other desks running inter-
volatility in the data used to calculate VaR and increased com-       est rate risk positions, actively manage their position within
modity exposure. The increase in average interest rate and            approved limits.
credit spread VaR was mainly driven by the market volatility as           The impact of a one basis point parallel increase of the
overall exposures fell during 1Q08. Our end-of-period one-            yield curves on the fair value of interest rate-sensitive non-
day, 99% VaR was CHF 153 million compared to CHF 216                  trading book positions would have amounted to a valuation
million as of the end of 4Q07, primarily due to reduced equity        decrease of CHF 4.1 million as of the end of 1Q08, compared
and foreign exchange exposures and the related increased              to CHF 4.4 million as of the end of 4Q07, mainly due to the
diversification benefit during 1Q08.                                  depreciation of the US dollar against the Swiss franc and the
    Various techniques are used to assess the accuracy of the         aging of existing term investments on our deployed equity,
VaR model, including backtesting. In line with industry prac-         partially offset by an increase in the long bond interest rate
tice, we present backtesting using actual daily trading rev-          exposure in the Global Treasury banking books.
62




     Loans


                                                                                                                                 Wealth Management                         Corporate & Retail Banking

     end of                                                                                                      1Q08            4Q07           1Q07             1Q08           4Q07           1Q07

     Loans (CHF million)
     Mortgages                                                                                                  31,926         31,450         29,967            48,316         48,128        48,298
     Loans collateralized by securities                                                                         23,013         23,267         22,570                185           202            273
     Other loans                                                                                                    993            916            181            3,748          3,786          3,000
     Consumer loans                                                                                             55,932         55,633         52,718            52,249         52,116        51,571
     Real estate                                                                                                 4,926          4,996          4,286            15,419         15,888        15,275
     Commercial and industrial loans                                                                             9,406         10,661          8,714            28,534         27,910        25,297
     Loans to financial institutions                                                                             5,263          4,970          5,986             3,165          2,803          2,127
     Governments and public institutions                                                                             17             67             16            1,335          1,349          1,398
     Corporate loans                                                                                            19,612         20,694         19,002            48,453         47,950        44,097
     Gross loans                                                                                                75,544         76,327         71,720        100,702          100,066         95,668
     Net (unearned income) / deferred expenses                                                                       14             12             12                31             40             55
     Allowance for loan losses 2                                                                                   (76)           (74)           (81)             (802)          (865)       (1,101)
     Net loans 3                                                                                                75,482         76,265         71,651            99,931         99,241        94,622

     Impaired loans (CHF million)
     Non-performing loans                                                                                           171            101            133               601           638            686
     Non-interest-earning loans                                                                                      33             31             31               283           346            516
     Total non-performing loans                                                                                     204            132            164               884           984          1,202
     Restructured loans                                                                                                0              0              0                 3             7              1
     Potential problem loans                                                                                         12               6            25               365           366            420
     Total other impaired loans                                                                                      12               6            25               368           373            421
     Gross impaired loans                                                                                           216            138            189            1,252          1,357          1,623
       of which with a specific allowance                                                                           215            137            179            1,089          1,182          1,353
       of which without a specific allowance                                                                           1              1            10               163           175            270

     Allowance for loan losses (CHF million)
     Balance at beginning of period 2                                                                                74             76             78               865           954          1,150
     Change in accounting                                                                                              0              0              0                 0             0              0
     Net additions charged to statements of income                                                                     2              1              4               (7)            (7)          (10)
     Gross write-offs                                                                                                (1)            (2)              0             (55)           (90)           (39)
     Recoveries                                                                                                        0              0              0               10              9              8
     Net write-offs                                                                                                  (1)            (2)              0             (45)           (81)           (31)
     Provisions for interest                                                                                           2              0            (1)               (2)             0            (9)
     Foreign currency translation impact and other adjustments, net                                                  (1)            (1)              0               (9)            (1)             1
     Balance at end of period 2                                                                                      76             74             81               802           865          1,101
       of which a specific allowance                                                                                 52             50             59               670           730            953
       of which an inherent credit loss allowance                                                                    24             24             22               132           135            148

     Loan metrics (%)
     Total non-performing loans / gross loans                                                                       0.3            0.2            0.2               0.9            1.0            1.3
     Total other impaired loans / gross loans                                                                       0.0            0.0            0.0               0.4            0.4            0.4
     Gross impaired loans / gross loans                                                                             0.3            0.2            0.3               1.2            1.4            1.7

     Allowance for loan losses / total non-performing loans                                                        37.3           56.1           49.4              90.7           87.9          91.6
     Allowance for loan losses / total other impaired loans                                                            –              –        324.0             217.9          231.9          261.5
     Allowance for loan losses / gross impaired loans                                                              35.2           53.6           42.9              64.1           63.7          67.8

     The disclosure presents our lending exposure from a risk management perspective and, as such, differs from the loans presentation in Note 12 – Loans in V – Condensed consolidated
     financial statements – unaudited.
     1                                                    2                                                                                                 3
       Includes Asset Management and Corporate Center.        Allowance for loan losses reflects allowances on loans which are not carried at fair value.       Loans carried at fair value amount to
     CHF 28,682 million in 1Q08.
                                                                                 Treasury and Risk management                   63
                                                                                                        Risk management




                                                                                          1
                Private Banking              Investment Banking                   Other                         Credit Suisse



  1Q08      4Q07        1Q07       1Q08     4Q07         1Q07     1Q08   4Q07     1Q07          1Q08       4Q07        1Q07



 80,242    79,578      78,265         0         0            0       0      0        0         80,242     79,578     78,265
 23,198    23,469      22,843         0         0            0       0      0        0         23,198     23,469     22,843
  4,741     4,702       3,181      1,030    1,017       1,140        0      0        0          5,771      5,719       4,321
108,181   107,749    104,289       1,030    1,017       1,140        0      0        0        109,211    108,766    105,429
 20,345    20,884      19,561      1,791    2,213       1,371        0      0       10         22,136     23,097     20,942
 37,940    38,571      34,011     26,115   34,661      24,839        0     11        2         64,055     73,243     58,852
  8,428     7,773       8,113     23,727   25,909      18,429      234    125      141         32,389     33,807     26,683
  1,352     1,416       1,414      1,223    1,459         933        5      0        0          2,580      2,875       2,347
 68,065    68,644      63,099     52,856   64,242      45,572      239    136      153        121,160    133,022    108,824
176,246   176,393    167,388      53,886   65,259      46,712      239    136      153        230,371    241,788    214,253
    45        52            67      (62)     (72)         (41)       0      0        1           (17)        (20)         27
  (878)     (939)     (1,182)      (308)    (295)        (266)       0      0       (1)       (1,186)     (1,234)    (1,449)
175,413   175,506    166,273      53,516   64,892      46,405      239    136      153        229,168    240,534    212,831



   772       739          819       390      234            55       0      0        0          1,162        973         874
   316       377          547         0         0            0       0      0        0           316         377         547
  1,088     1,116       1,366       390      234            55       0      0        0          1,478      1,350       1,421
     3         7             1       38       42             0       0      0        0            41          49           1
   377       372          445        30      175             0       0      0        0           407         547         445
   380       379          446        68      217             0       0      0        0           448         596         446
  1,468     1,495       1,812       458      451            55       0      0        0          1,926      1,946       1,867
  1,304     1,319       1,532       454      244            55       0      0        0          1,758      1,563       1,587
   164       176          280         4      207             0       0      0        0           168         383         280



   939      1,030       1,228       295      283          255        0      3        1          1,234      1,316       1,484
     0         0             0        0         0         (61)       0      0        0             0           0        (61)
    (5)       (6)           (6)      33       11            64       0      0       (1)           28           5          57
   (56)      (92)         (39)      (14)      (2)         (10)       0      0       (1)          (70)        (94)       (50)
    10         9             8       26       11            12       0      0        0            36          20          20
   (46)      (83)         (31)       12         9            2       0      0       (1)          (34)        (74)       (30)
     0         0          (10)        5         1            7       0      0        1             5           1          (2)
   (10)       (2)            1      (37)      (9)           (1)      0     (3)       1           (47)        (14)          1
   878       939        1,182       308      295          266        0      0        1          1,186      1,234       1,449
   722       780        1,012       108       69            24       0      1        0           830         850       1,036
   156       159          170       200      226          242        0     (1)       1           356         384         413



    0.6       0.6          0.8       0.7      0.4          0.1       –      –        –            0.6        0.6         0.7
    0.2       0.2          0.3       0.1      0.3          0.0       –      –        –            0.2        0.2         0.2
    0.8       0.8          1.1       0.8      0.7          0.1       –      –        –            0.8        0.8         0.9

   80.7      84.1        86.5       79.0    126.1       483.6        –      –        –           80.2       91.4       102.0
  231.1     247.8       265.0      452.9    135.9            –       –      –        –          264.7      207.0       324.9
   59.8      62.8        65.2       67.2     65.4       483.6        –      –        –           61.6       63.4        77.6
64




     Credit risk                                                       gross impaired loans by valuation allowances decreased from
                                                                       63% to 60% and in Investment Banking it increased from
     We encounter credit risk in our lending-related businesses, in    65% to 67%. We recorded a provision for credit losses of
     counterparty trading and through issuer risk in trading assets.   CHF 151 million in 1Q08 compared to CHF 203 million in
     The majority of our credit risk is concentrated in Investment     4Q07. The net new provision for credit losses in 1Q08 and
     Banking and Private Banking.                                      4Q07 was primarily due to a guarantee provided in a prior year
                                                                       to a third party bank by Investment Banking.
     Loan exposure                                                         Compared to 1Q07, gross loans increased CHF 16.1 bil-
     Gross loans decreased 5% to CHF 230.4 billion as of the end       lion, or 8%, reflecting growth in both Investment Banking and
     of 1Q08 compared to the end of 4Q07. In Private Banking,          Private Banking. Gross loans in Private Banking increased
     gross loans were stable at CHF 176.2 billion. Gross loans in      from CHF 167.4 billion to CHF 176.2 billion across most busi-
     Investment Banking decreased 17% to CHF 53.9 billion,             nesses. In Investment Banking, gross loans increased from
     mainly due to the depreciation of the US dollar against the       CHF 46.7 billion to CHF 53.9 billion, due to increases in loans
     Swiss franc.                                                      to financial institutions and commercial and industrial loans.
         As of the end of 1Q08, gross impaired loans were CHF              Compared to 1Q07, gross impaired loans increased 3% to
     1.9 billion, unchanged from the end of 4Q07. Total coverage       CHF 1.9 billion, driven by an increase in non-performing and
     of gross impaired loans by valuation allowances as of the end     other impaired loans in Investment Banking, offset in part by
     of 1Q08 was stable at 62%. In Private Banking, coverage of        reductions in non-performing loans in Private Banking.
V
Condensed                67 Report of Independent Registered
                            Public Accounting Firm
consolidated
                         69 Condensed consolidated financial
financial statements –      statements – unaudited
unaudited                75 Notes to the condensed
                            consolidated financial statements –
                            unaudited
                            (see the following page for a detailed list)
Notes to the condensed consolidated
financial statements – unaudited

75     1   Summary of significant accounting policies
78     2   Business developments
79     3   Segment reporting
81     4   Net interest income
81     5   Commissions and fees
82     6   Other revenues
82     7   Provision for credit losses
82     8   Compensation and benefits
83     9   General and administrative expenses
83    10   Earnings per share
84    11   Trading assets and liabilities
85    12   Loans
86    13   Other assets and other liabilities
87    14   Long-term debt
87    15   Accumulated other comprehensive income
87    16   Tax
88    17   Employee share-based compensation and other benefits
89    18   Pension
90    19   Guarantees and commitments
92    20   Variable interest entities
94    21   Fair value of financial instruments
100   22   Subsidiary guarantee information
104   23   Litigation
Condensed consolidated financial statements – unaudited   67
68
                                                             Condensed consolidated financial statements – unaudited               69




Condensed consolidated financial
statements – unaudited
Consolidated statements of income (unaudited)

                                                                                                            in          % change

                                                                                  1Q08       4Q07       1Q07     QoQ        YoY

Consolidated statements of income (CHF million)
Interest and dividend income                                                     12,759     15,221     14,692    (16)       (13)
Interest expense                                                                (10,653)   (13,065)   (12,603)   (18)       (15)
Net interest income                                                               2,106      2,156      2,089     (2)         1
Commissions and fees                                                              3,933      4,879      4,977    (19)       (21)
Trading revenues                                                                 (1,777)      (720)     3,216     147         –
Other revenues                                                                   (1,167)     1,921      1,338       –         –
Net revenues                                                                      3,095      8,236     11,620    (62)       (73)
Provision for credit losses                                                         151        203         53    (26)       185
Compensation and benefits                                                         3,264      3,468      4,950     (6)       (34)
General and administrative expenses                                               1,585      2,022      1,532    (22)         3
Commission expenses                                                                 624        694        609    (10)         2
Total other operating expenses                                                    2,209      2,716      2,141    (19)         3
Total operating expenses                                                          5,473      6,184      7,091    (11)       (23)
Income/(loss) before taxes and minority interests                                (2,529)     1,849      4,476       –         –
Income tax expense/(benefit)                                                       (455)      (403)       822      13         –
Minority interests                                                                   74      1,712        925    (96)       (92)
Net income/(loss)                                                                (2,148)       540      2,729       –         –

Basic earnings per share (CHF)
Net income/(loss)                                                                 (2.10)      0.53       2.56       –         –

Diluted earnings per share (CHF)
Net income/(loss)                                                                 (2.10)      0.49       2.42       –         –




The accompanying notes to the condensed consolidated financial statements – unaudited are an integral part of these statements.
70




     Consolidated balance sheets (unaudited)

                                                                                                            end of           % change

                                                                                       1Q08       4Q07      1Q07      QoQ        YoY

     Assets (CHF million)
     Cash and due from banks                                                          27,773    38,459     27,578     (28)         1
     Interest-bearing deposits with banks                                              3,412     3,759      5,572      (9)       (39)
     Central bank funds sold, securities purchased under
     resale agreements and securities borrowing transactions                         276,507   296,709    326,473      (7)       (15)
       of which reported at fair value                                               158,948   183,719    137,411     (13)        16
     Securities received as collateral, at fair value                                 20,679    28,314     34,406     (27)       (40)
     Trading assets, at fair value                                                   446,683   532,083    515,050     (16)       (13)
       of which encumbered                                                           122,470   141,764    162,181     (14)       (24)
     Investment securities                                                            15,129    15,731     19,185      (4)       (21)
       of which reported at fair value                                                14,865    15,453     18,912      (4)       (21)
       of which encumbered                                                             4,320     1,908      3,738      126        16
     Other investments                                                                25,228    28,120     21,258     (10)        19
       of which reported at fair value                                                22,933    25,195     19,383      (9)        18
     Net loans                                                                       229,168   240,534    212,831      (5)         8
       of which reported at fair value                                                28,682    31,047     17,317      (8)        66
       allowance for loan losses                                                       1,186     1,234      1,449      (4)       (18)
     Premises and equipment                                                            5,912     6,149      6,040      (4)        (2)
     Goodwill                                                                          9,590    10,882     11,043     (12)       (13)
     Other intangible assets                                                             532       444       492        20         8
       of which reported at fair value                                                   129       179       204      (28)       (37)
     Other assets                                                                    147,381   159,496    179,759      (8)       (18)
       of which reported at fair value                                                48,573    49,326     52,073      (2)        (7)
       of which encumbered                                                             8,634    12,084     29,426     (29)       (71)
     Total assets                                                                   1,207,994 1,360,680 1,359,687     (11)       (11)




     The accompanying notes to the condensed consolidated financial statements – unaudited are an integral part of these statements.
                                                                        Condensed consolidated financial statements – unaudited          71




Consolidated balance sheets (unaudited)

                                                                                                              end of          % change

                                                                                          1Q08      4Q07      1Q07     QoQ        YoY

Liabilities and shareholders’ equity (CHF million)
Due to banks                                                                             75,339    90,864   120,972    (17)       (38)
  of which reported at fair value                                                         6,040     6,047     4,406      0         37
Customer deposits                                                                       315,564   335,505   328,325     (6)        (4)
  of which reported at fair value                                                         5,288     6,134     3,806    (14)        39
Central bank funds purchased, securities sold under
repurchase agreements and securities lending transactions                               255,893   300,381   284,464    (15)       (10)
  of which reported at fair value                                                       112,867   140,424   125,734    (20)       (10)
Obligation to return securities received as collateral, at fair value                    20,679    28,314    34,406    (27)       (40)
Trading liabilities, at fair value                                                      186,868   201,809   216,972     (7)       (14)
Short-term borrowings                                                                    12,709    19,390    27,722    (34)       (54)
  of which reported at fair value                                                         4,692     8,120     9,336    (42)       (50)
Long-term debt                                                                          142,839   160,157   155,892    (11)        (8)
  of which reported at fair value                                                        96,008   111,293   101,997    (14)        (6)
Other liabilities                                                                       146,305   164,421   131,284    (11)        11
  of which reported at fair value                                                        24,431    24,233    20,670      1         18
Minority interests                                                                       14,159    16,640    15,646    (15)       (10)
Total liabilities                                                                     1,170,355 1,317,481 1,315,683    (11)       (11)
Common shares                                                                               46        46        607      0        (92)
Additional paid-in capital                                                               25,228    24,553    24,780      3          2
Retained earnings                                                                        31,522    33,670    34,206     (6)        (8)
Treasury shares, at cost                                                                (9,735)   (9,378)   (10,502)     4         (7)
Accumulated other comprehensive income/(loss)                                           (9,422)   (5,692)    (5,087)    66         85
Total shareholders’ equity                                                               37,639    43,199    44,004    (13)       (14)

Total liabilities and shareholders’ equity                                            1,207,994 1,360,680 1,359,687    (11)       (11)



                                                                                                              end of          % change

                                                                                          1Q08      4Q07      1Q07     QoQ        YoY

Additional share information
Par value (CHF)                                                                            0.04      0.04      0.50      0        (92)
Authorized shares (million)                                                             1,359.3   1,359.3   1,413.3      0         (4)
Issued shares (million)                                                                 1,162.5   1,162.4   1,215.5      0         (4)
Repurchased shares (million)                                                            (149.0)   (141.8)    (167.0)     5        (11)
Shares outstanding (million)                                                            1,013.5   1,020.6   1,048.5     (1)        (3)




The accompanying notes to the condensed consolidated financial statements – unaudited are an integral part of these statements.
72




     Consolidated statements of changes in shareholders’ equity (unaudited)

                                                                                                                                       Accumu-
                                                                                                                                           lated
                                                                                                                                          other
                                                                                                                                       compre-          Total                    Number of
                                                                                           Additional                    Treasury       hensive       share-                       common
                                                                             Common          paid-in      Retained        shares,      income/       holders’                        shares
                                                                               shares        capital      earnings         at cost        (loss)       equity                   outstanding

     1Q08 (CHF million)
                                                                                                                                                                                              1
     Balance at beginning of period                                                 46       24,553         33,670        (9,378)       (5,692)        43,199             1,020,627,855
     Net income/(loss)                                                                –             –       (2,148)              –             –      (2,148)                             –
     Other comprehensive income/(loss), net of tax                                    –             –             –              –      (3,730)       (3,730)                             –
     Issuance of common shares                                                        –             1             –              –             –             1                     17,410
     Issuance of treasury shares                                                      –          (45)             –        6,986               –        6,941               126,564,135
                                                                                                                                                                                              2
     Repurchase of treasury shares                                                    –             –             –       (7,451)              –      (7,451)              (135,493,138)
     Share-based compensation, net of tax                                             –          719              –           108              –          827                   1,799,707
                                                                                                                                                                                              3
     Balance at end of period                                                       46       25,228         31,522        (9,735)       (9,422)        37,639             1,013,515,969

     1Q07 (CHF million)
     Balance at beginning of period                                                607       24,817         32,306        (9,111)       (5,033)       43,586              1,062,467,061
     Net income                                                                       –             –        2,729               –             –        2,729                             –
     Cumulative effect of accounting changes, net of tax                              –             –         (829)              –           10          (819)                            –
     Other comprehensive income/(loss), net of tax                                    –             –             –              –          (64)          (64)                            –
     Issuance of common shares                                                        –            26             –              –             –            26                    590,976
     Issuance of treasury shares                                                      –          (39)             –       10,240               –      10,201                118,625,807
     Repurchase of treasury shares                                                    –             –             –     (11,963)               –     (11,963)              (139,141,331)
     Share-based compensation, net of tax                                             –          239              –           332              –          571                   5,907,428
     Derivatives indexed to own shares                                                         (263)              –              –             –         (263)                            –
     Balance at end of period                                                      607       24,780         34,206      (10,502)        (5,087)       44,004              1,048,449,941

     1
       At par value CHF 0.04 each, fully paid, net of 141,834,285 treasury shares. In addition to the treasury shares, a maximum of 196,835,440 unissued shares (conditional and authorized
     capital) were available for issuance without further approval of the shareholders. 2 Includes 3,595,000 shares repurchased in connection with Credit Suisse Group’s share buyback
     programs. 3 At par value CHF 0.04 each, fully paid, net of 148,963,581 treasury shares. In addition to the treasury shares, a maximum of 196,783,794 unissued shares (conditional
     and authorized capital) were available for issuance without further approval of the shareholders.




     Comprehensive income (unaudited)

                                                                                                                                                             in                   % change

                                                                                                                            1Q08          4Q07          1Q07            QoQ            YoY

     Comprehensive income (CHF million)
     Net income/(loss)                                                                                                    (2,148)           540         2,729               –             –
         Gains/(losses) on cash flow hedges                                                                                    11           (23)            (7)             –             –
         Cumulative translation adjustments                                                                               (3,765)         (935)           (66)          303               –
         Unrealized gains/(losses) on securities                                                                               21            14             11            50            91
         Actuarial gains/losses                                                                                                  4        1,098             (2)        (100)              –
         Net prior service cost                                                                                                (1)             5             0              –             –
     Other comprehensive income/(loss), net of tax                                                                        (3,730)           159           (64)              –             –
     Comprehensive income/(loss)                                                                                          (5,878)           699         2,665               –             –




     The accompanying notes to the condensed consolidated financial statements – unaudited are an integral part of these statements.
                                                                              Condensed consolidated financial statements – unaudited              73




Consolidated statements of cash flows (unaudited)

                                                                                                                                   in   % change

                                                                                                                    1Q08       1Q07         YoY

Operating activities (CHF million)
Net income/(loss)                                                                                                  (2,148)     2,729          –

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities (CHF million)
Impairment, depreciation and amortization                                                                             233        224          4
Provision for credit losses                                                                                           151         53        185
Deferred tax provision                                                                                               (484)       208          –
Share of net income from equity method investments                                                                    (20)       (29)       (31)
Trading assets and liabilities                                                                                     29,621    (39,611)         –
(Increase)/decrease in accrued interest, fees receivable and other assets                                          (9,933)   (33,820)       (71)
Increase/(decrease) in accrued expenses and other liabilities                                                           9     10,140       (100)
Other, net                                                                                                         (5,010)       528          –
Total adjustments                                                                                                  14,567    (62,307)         –
Net cash provided by/(used in) operating activities                                                                12,419    (59,578)         –

Investing activities (CHF million)
(Increase)/decrease in interest-bearing deposits with banks                                                            41      2,564        (98)
(Increase)/decrease in central bank funds sold, securities purchased under
resale agreements and securities borrowing transactions                                                           (12,398)    (7,254)        71
Purchase of investment securities                                                                                    (356)      (129)       176
Proceeds from sale of investment securities                                                                             0        354       (100)
Maturities of investment securities                                                                                   280      2,081        (87)
Investments in subsidiaries and other investments                                                                    (711)      (770)        (8)
Proceeds from sale of other investments                                                                               454        306         48
(Increase)/decrease in loans                                                                                        2,469     (4,523)         –
Proceeds from sales of loans                                                                                          407         76        436
Capital expenditures for premises and equipment and other intangible assets                                          (259)      (297)       (13)
Proceeds from sale of premises and equipment and other intangible assets                                                0          5       (100)
Other, net                                                                                                            (46)        (3)         –
Net cash provided by/(used in) investing activities                                                               (10,119)    (7,590)        33




The accompanying notes to the condensed consolidated financial statements – unaudited are an integral part of these statements.
74




     Consolidated statements of cash flows (unaudited) (continued)

                                                                                                                          in   % change

                                                                                                           1Q08       1Q07         YoY

     Financing activities (CHF million)
     Increase/(decrease) in due to banks and customer deposits                                            (6,083)    60,862          –
     Increase/(decrease) in short-term borrowings                                                         (4,423)     6,960          –
     Increase/(decrease) in central bank funds purchased, securities sold under
     repurchase agreements and securities lending transactions                                           (11,991)    (4,058)       195
     Issuances of long-term debt                                                                          32,988     20,750         59
     Repayments of long-term debt                                                                        (27,688)   (16,932)        64
     Issuances of common shares                                                                                1         26        (96)
     Issuances of treasury shares                                                                          6,941     10,201        (32)
     Repurchase of treasury shares                                                                        (7,451)   (11,963)       (38)
     Dividends paid/capital repayments                                                                       (31)         0          –
     Other, net                                                                                            7,967        (93)         –
     Net cash provided by/(used in) financing activities                                                  (9,770)    65,753          –

     Effect of exchange rate changes on cash and due from banks (CHF million)
     Effect of exchange rate changes on cash and due from banks                                           (3,216)       (47)         –

     Net increase/(decrease) in cash and due from banks (CHF million)
     Net increase/(decrease) in cash and due from banks                                                  (10,686)   (1,462)          –

     Cash and due from banks at beginning of period                                                       38,459     29,040         32
     Cash and due from banks at end of period                                                             27,773     27,578          1




     Supplemental cash flow information (unaudited)

                                                                                                                          in   % change

                                                                                                           1Q08       1Q07         YoY

     Cash paid for income taxes and interest (CHF million)
     Cash paid for income taxes                                                                              960        317        203
     Cash paid for interest                                                                               11,977    12,892          (7)




     The accompanying notes to the condensed consolidated financial statements – unaudited are an integral part of these statements.
                                                                 Condensed consolidated financial statements – unaudited                 75




Notes to the condensed consolidated
financial statements – unaudited
Note 1   Summary of significant accounting policies


Basis of presentation                                                Recently adopted accounting standards
The accompanying unaudited condensed consolidated finan-             The following provides the most relevant recently adopted
cial statements of Credit Suisse Group (the Group) are pre-          accounting standards. For a complete description of recently
pared in accordance with accounting principles generally             adopted accounting standards, refer to Note 2 – Recently
accepted in the United States of America (US GAAP) and are           issued accounting standards in V – Consolidated financial
stated in Swiss francs (CHF). These condensed consolidated           statements – Credit Suisse Group in the Credit Suisse Annual
financial statements should be read in conjunction with the US       Report 2007.
GAAP consolidated financial statements and notes thereto for
the year ended December 31, 2007, included in the Credit             SAB 110
Suisse Annual Report 2007. For a description of the Group’s          In December 2007, the United States (US) Securities and
significant accounting policies, refer to Note 1 – Summary of        Exchange Commission (SEC) issued Staff Accounting Bulletin
significant accounting policies in V – Consolidated financial        (SAB) No. 110, “Share-Based Payment” (SAB 110). SAB
statements – Credit Suisse Group in the Credit Suisse Annual         110 expresses the view of the staff regarding the use of a
Report 2007.                                                         simplified method, as discussed in SAB No. 107, “Share-
    Certain financial information, which is normally included in     Based Payment” (SAB 107), in developing an estimate of the
annual consolidated financial statements prepared in accor-          expected term of ‘plain vanilla’ share options in accordance
dance with US GAAP but not required for interim reporting            with Statement of Financial Accounting (SFAS) No. 123
purposes, has been condensed or omitted. Certain reclassifi-         (revised 2004), “Share Based Payment.” When SAB 107 was
cations have been made to the prior period’s consolidated            issued, the staff indicated that it would not expect a company
financial statements to conform to the current period’s presen-      to use the simplified method for share option grants after
tation. These condensed consolidated financial statements            December 31, 2007. As the staff now understands that
reflect, in the opinion of management, all adjustments that are      detailed information about employee exercise behavior may
necessary for a fair presentation of the condensed consoli-          not be widely available by December 31, 2007, the staff will
dated financial statements for the periods presented. The            continue to accept, under certain circumstances, the use of
presentation of period over period change, the 4Q07 consoli-         the simplified method beyond December 31, 2007.
dated statements of income and the 1Q07 consolidated bal-                The Group adopted SAB 110 on January 1, 2008. The
ance sheets have been added for convenience of the reader            adoption of SAB 110 did not have a material impact on the
and are not a required presentation under US GAAP. The               Group’s financial condition, results of operations or cash flows.
results of operations for interim periods are not indicative of
results for the entire year.                                         SAB 109
    In preparing these condensed consolidated financial state-       In November 2007, the SEC issued SAB No. 109, “Written
ments, management is required to make estimates and                  Loan Commitments Recorded at Fair Value Through Earnings”
assumptions, which affect the reported amounts of assets and         (SAB 109). SAB 109 provides guidance that the expected net
liabilities and disclosure of contingent assets and liabilities as   future cash flows related to the associated servicing of the
of the date of the condensed consolidated balance sheets and         loan should be included in the measurement of all written loan
the reported amounts of revenues and expenses during the             commitments that are accounted at fair value through earn-
reporting period. Actual results could differ from those esti-       ings.
mates.                                                                   SAB 109 retains the view that internally-developed intangi-
                                                                     ble assets should not be recorded as part of the fair value of a
                                                                     derivative loan commitment and broadens this view to all writ-
76




     ten loan commitments that are accounted for at fair value           sions of FSP FIN 39-1 on a prospective basis. For further
     through earnings.                                                   information on the impact of offsetting cash collateral against
         The Group adopted SAB 109 on January 1, 2008. The               derivative instruments, refer to Note 11 – Trading assets and
     adoption of SAB 109 did not have a material impact on the           liabilities.
     Group’s financial condition, results of operations or cash flows.
                                                                         SFAS 159
     EITF 06-11                                                          In February 2007, the FASB issued SFAS No. 159, “The Fair
     In June 2007, the Financial Accounting Standards Board              Value Option for Financial Assets and Financial Liabilities –
     (FASB) ratified Emerging Issues Task Force (EITF) Issue No.         Including an amendment of FASB Statement No. 115” (SFAS
     06-11, “Accounting for Income Tax Benefits of Dividends on          159). SFAS 159 creates an alternative measurement treat-
     Share-Based Payment Awards” (EITF 06-11). EITF 06-11                ment for certain financial assets and financial liabilities that
     addresses share-based payment arrangements where employ-            permits fair value to be used for initial and subsequent meas-
     ees receive dividends on awards during the vesting period.          urement with changes in fair value recognized in earnings. The
     EITF 06-11 confirmed that a realized income tax benefit from        availability of this alternative measurement treatment is
     dividends or dividend equivalents that are charged to retained      referred to as the fair value option. The statement also pro-
     earnings and are paid to employees for equity classified non-       vides for additional financial statement presentation and dis-
     vested equity shares, non-vested equity share units and out-        closures relating to the alternative measurement treatment.
     standing equity share options should be recognized as an            The Group adopted the provisions of SFAS 159 on January 1,
     increase to additional paid-in capital. The amount recognized       2007. As a result of adoption and election of certain existing
     in additional paid-in capital for the realized income tax benefit   instruments under the fair value option, the Group reported a
     from dividends in those awards should be included in the pool       decrease in opening retained earnings of CHF 1,003 million,
     of excess tax benefits available to absorb tax deficiencies on      net of tax. For further information on fair values, refer to Note
     share-based payment awards.                                         21 – Fair value of financial instruments.
         EITF 06-11 is effective prospectively to income tax bene-
     fits that result from dividends on equity classified employee       SFAS 157
     share-based payment awards that are declared in fiscal years        In September 2006, the FASB issued SFAS No. 157, “Fair
     beginning after December 15, 2007. Early application was            Value Measurements” (SFAS 157). SFAS 157 establishes a
     permitted for the income tax benefits of dividends on equity-       single authoritative definition of fair value, sets out a frame-
     classified share-based payment awards that are declared in          work for measuring fair value, and requires additional disclo-
     periods for which financial statements have not yet been            sures for instruments carried at fair value. The statement
     issued. The Group early adopted EITF 06-11 for the account-         applies only to fair value measurements which are already
     ing period ended December 31, 2007 and recognized CHF 13            required or permitted by other accounting standards. It elimi-
     million of tax benefits in respect of tax on dividend equivalent    nates the EITF Issue No. 02-3 “Issues Involved in Accounting
     payments.                                                           for Derivative Contracts Held for Trading Purposes and Con-
                                                                         tracts Involved in Energy Trading and Risk Management Activ-
     FSP FIN 39-1                                                        ities” (EITF 02-3) guidance which prohibits the recognition of
     In April 2007, the FASB issued FASB Staff Position (FSP)            gains or losses at the inception of derivative transactions
     No. FIN 39-1, “Amendment of FASB Interpretation No. 39”             whose fair value is estimated based upon unobservable market
     (FSP FIN 39-1). FSP FIN 39-1 permits a reporting entity that        data. SFAS 157 also eliminates the use of blockage factors
     is a party to a master netting agreement to offset fair value       on instruments that are quoted in active markets by brokers,
     amounts recognized for the right to reclaim cash collateral or      dealers and investment companies that have been applying the
     the obligation to return cash collateral against fair value         applicable American Institute of Certified Public Accountants
     amounts recognized for derivative instruments that have been        (AICPA) Audit and Accounting Guides. SFAS 157 also
     offset under the same master netting agreement. FSP FIN             requires the Group to consider its own credit spreads when
     39-1 is required to be applied retrospectively for all financial    measuring the fair value of liabilities. The Group adopted the
     statements presented unless it is impracticable to do so. As        provisions of SFAS 157 on January 1, 2007. As a result of
     part of the Group’s implementation procedures for adopting          this adoption, the Group reported an increase in opening
     FSP FIN 39-1, it was determined that adopting FSP FIN 39-           retained earnings of CHF 187 million, net of tax. For further
     1 retrospectively is impracticable as it would require undue        information on fair values, refer to Note 21 – Fair value of
     time and effort. Based on this, the Group adopted the provi-        financial instruments.
                                                                  Condensed consolidated financial statements – unaudited                77




SFAS 158                                                              tions by prescribing a consistent recognition threshold and
In September 2006, the FASB issued SFAS No. 158,                      measurement attribute for income tax positions taken or
“Employers’ Accounting for Defined Benefit Pension and                expected to be taken in an income tax return. FIN 48 also pro-
Other Postretirement Plans – an amendment of FASB State-              vides guidance on derecognition, classification, interest and
ments No. 87, 88, 106 and 132(R)” (SFAS 158). SFAS 158                penalties, accounting in interim periods, disclosure and transi-
requires an employer to:                                              tion.
(i) recognize in the statement of financial condition the                  FIN 48 requires a two-step process in evaluating income
      funded status of a defined benefit plan on a prospective        tax positions. In the first step, an enterprise determines
      basis;                                                          whether it is more likely than not that an income tax position
(ii) recognize as a component of other comprehensive                  will be sustained upon examination, including resolution of any
      income, net of tax, the actuarial gains or losses and prior     related appeals or litigation processes, based on the technical
      service costs or credits that arise during the period but are   merits of the position. Income tax positions meeting the more-
      not recognized as components of net periodic benefit cost       likely-than-not recognition threshold are then measured to
      pursuant to SFAS No. 87, “Employers’ Accounting for             determine the amount of benefit eligible for recognition in the
      Pensions” (SFAS 87) or No. 106, “Employers’ Accounting          financial statements. Each income tax position is measured at
      for Postretirement Benefits Other than Pensions” (SFAS          the largest amount of benefit that is more likely than not to be
      106). Amounts recognized in accumulated other compre-           realized upon ultimate settlement.
      hensive income (AOCI), including gains or losses, prior              The provisions of FIN 48 are effective for fiscal years
      service costs or credits and transition assets or obligations   beginning after December 15, 2006. The adoption of FIN 48
      remaining from the initial application of SFAS 87 and           as of January 1, 2007, resulted in a decrease in beginning
      SFAS 106, are to be adjusted as they are subsequently           retained earnings of CHF 13 million. For further information on
      recognized as a component of net periodic benefit cost;         uncertainty in income tax positions, refer to Note 16 – Tax.
(iii) measure the defined benefit plan assets and obligations as
      of the date of the employer’s fiscal year-end statement of      Standards to be adopted in future periods
      financial condition; and
(iv) disclose in the notes to the financial statements additional     SFAS 141(R)
      information about certain effects on net periodic benefit       In December 2007, the FASB issued SFAS No. 141 (Revised
      cost for the next fiscal year that arise from delayed recog-    2007), “Business Combinations” (SFAS 141(R)). SFAS
      nition of the gains or losses, prior service costs or credits   141(R) requires an acquiring entity to recognize all assets
      and transition asset or obligation.                             acquired, liabilities assumed and any noncontrolling interest in
                                                                      the acquiree at the acquisition date, at their fair values as of
SFAS 158 recognition provisions associated with the funded            that date.
status of a defined benefit plan was effective as of the end of           SFAS 141(R) also requires substantial new disclosures
the fiscal year ending after December 15, 2006. The provision         and will change the accounting treatment for the recognition
to measure plan assets and benefit obligations as of the date         of acquisition costs, restructuring costs and in-process
of the employer’s fiscal year-end statement of financial condi-       research and development as well as the recognition and sub-
tion is effective for fiscal years ending after December 15,          sequent measurement of acquired contingent liabilities.
2008, with early adoption permitted.                                      The guidance in SFAS 141(R) is effective on a prospective
    The cumulative effect of the Group adopting the recogni-          basis for business combinations in which the acquisition date
tion provisions of SFAS 158 as of December 31, 2006, was              is on or after the first annual reporting period beginning on or
an after-tax decrease in AOCI and consolidated net assets of          after December 15, 2008. The Group is currently evaluating
CHF 1.8 billion. The Group did not early adopt the measure-           the impact of adopting SFAS 141(R).
ment date provisions and is evaluating the impact of those pro-
visions for adoption in 2008.                                         SFAS 160
                                                                      In December 2007, the FASB issued SFAS No. 160, “Non-
FIN 48                                                                controlling Interests in Consolidated Financial Statements – an
In July 2006, the FASB issued FASB Interpretation (FIN) No.           amendment of ARB No. 51” (SFAS 160). SFAS 160 amends
48, “Accounting for Uncertainty in Income Taxes – an interpre-        Accounting Research Bulletin (ARB) No. 51 to establish
tation of FASB Statement No. 109” (FIN 48). FIN 48                    accounting and reporting standards for a noncontrolling inter-
addresses the accounting for uncertainty in income tax posi-          est in a subsidiary and for deconsolidation of a subsidiary.
78




         SFAS 160 requires the recognition of a noncontrolling                 FSP FAS 140-3 is effective for prospective transactions
     interest as equity in the consolidated financial statements and       entered into in fiscal years and interim periods within those fis-
     separate from the parent’s equity. In addition, net income            cal years, beginning after November 15, 2008. Earlier appli-
     attributable to the noncontrolling interest must be included in       cation is not permitted. The Group is currently evaluating the
     consolidated net income on the face of the income statement.          impact of adopting FSP FAS 140-3.
     SFAS 160 clarifies that changes in a parent’s ownership inter-
     est in a subsidiary that do not result in deconsolidation are         SFAS 161
     equity transactions if the parent retains its controlling financial   In March 2008, the FASB issued SFAS No. 161, “Disclosures
     interest. SFAS 160 has additional disclosure requirements             about Derivative Instruments and Hedging Activities – an
     that clearly identify and distinguish between the interests of        amendment of FASB Statement No. 133” (SFAS 161). SFAS
     the parent and the interests of the noncontrolling owners.            161 amends and expands the disclosure requirements of
         SFAS 160 is effective for fiscal years, and interim periods       SFAS No. 133, “Accounting for Derivative Instruments and
     within those fiscal years, beginning on or after December 15,         Hedging Activities” (SFAS 133), with the intent to provide
     2008. The Group is currently evaluating the impact of adopt-          users of financial statements with an enhanced understanding
     ing SFAS 160.                                                         of: i) how and why an entity uses derivative instruments; ii)
                                                                           how derivative instruments and related hedge items are
     FSP FAS 140-3                                                         accounted for under SFAS 133 and its related interpretations;
     In February 2008, the FASB issued FSP No. FAS 140-3,                  and iii) how derivative instruments and related hedged items
     “Accounting for Transfers of Financial Assets and Repurchase          affect an entity’s financial position, financial performance and
     Financing Transactions” (FSP FAS 140-3). FSP FAS 140-3                cash flows.
     applies to a repurchasing financing, which is a repurchase                SFAS 161 requires qualitative disclosures about objectives
     agreement that relates to a previously transferred financial          and strategies for using derivatives, quantitative disclosures
     asset between the same counterparties that is entered into            about fair value amounts of gains and losses on derivative
     contemporaneously with, or in contemplation of, the initial           instruments and credit-risk-related contingent features in
     transfer. FSP FAS 140-3 states that a transferor and trans-           derivative agreements.
     feree shall not separately account for a transfer of a financial          SFAS 161 is effective for financial statements issued for
     asset and a related repurchase financing unless the two trans-        fiscal years, and interim periods within those fiscal years,
     actions have a valid and distinct business or economic purpose        beginning after November 15, 2008. The statement encour-
     for being entered into separately and the repurchase financing        ages but does not require disclosures for earlier periods pre-
     does not result in the initial transferor regaining control over      sented for comparative purposes at initial adoption. In years
     the financial asset. FSP FAS 140-3 establishes a presumption          after initial adoption, SFAS 161 requires comparative disclo-
     that an initial transfer and a repurchase financing are linked        sures only for periods subsequent to initial adoption. SFAS
     unless certain criteria are met. If the criteria are not met, the     161 is a disclosure standard and as such will not impact the
     initial transfer is not accounted for as a sale by the transferor     Group’s financial position, results of operations or cash flows.
     and the repurchase financing is accounted for as a forward
     contract.




     Note 2   Business developments


     Acquisitions and divestitures
     There were no significant acquisitions and divestitures in
     1Q08.
                                                               Condensed consolidated financial statements – unaudited                  79




Note 3   Segment reporting


Overview                                                           dation of these entities does not affect net income as the
The Group is a global financial services company domiciled in      amounts recorded in net revenues and total operating
Switzerland. The Group’s business consists of three seg-           expenses are offset by corresponding amounts reported as
ments: Private Banking, Investment Banking and Asset Man-          minority interests. In addition, our tax expense is not affected
agement. The three segments are complemented by Shared             by these revenues and expenses.
Services, which provides support in the areas of finance, oper-
ations, including human resources, legal and compliance, risk      Revenue sharing and cost allocation
management and information technology.                             Responsibility for each product is allocated to a segment,
    The segment information reflects the Group’s reportable        which records all related revenues and expenses. Revenue-
segments as follows:                                               sharing and service level agreements govern the compensation
p Private Banking offers comprehensive advice and a broad          received by one segment for generating revenue or providing
    range of wealth management solutions, including pension        services on behalf of another. These agreements are negoti-
    planning, life insurance products, tax planning and wealth     ated periodically by the relevant segments on a product-by-
    and inheritance advice, which are tailored to the needs of     product basis.
    high-net-worth individuals worldwide. In Switzerland, it           The aim of revenue-sharing and cost allocation agree-
    supplies banking products and services to high-net-worth,      ments is to reflect the pricing structure of unrelated third-party
    corporate and retail clients.                                  transactions.
p Investment Banking offers investment banking and securi-             Corporate services and business support in finance, oper-
    ties products and services to corporate, institutional and     ations, including human resources, legal and compliance, risk
    government clients around the world. Its products and          management and information technology are provided by the
    services include debt and equity underwriting, sales and       Shared Services area. Shared Services costs are allocated to
    trading, mergers and acquisitions advice, divestitures, cor-   the segments and Corporate Center based on their require-
    porate sales, restructuring and investment research.           ments and other relevant measures.
p Asset Management offers integrated investment solutions
    and services to institutions, governments and private          Funding
    clients globally. It provides access to the full range of      Credit Suisse centrally manages its funding activities. New
    investment classes, ranging from equity and fixed income       securities for funding and capital purposes are issued primarily
    products and multi-asset class solutions to alternative        by the Bank. The Bank lends funds to its operating sub-
    investments such as private equity, real estate and hedge      sidiaries and affiliates on both a senior and subordinated basis,
    funds.                                                         as needed, the latter typically to meet capital requirements, or
                                                                   as desired by management to capitalize on opportunities. Cap-
Corporate Center includes parent company operations such as        ital is distributed to the segments considering factors such as
Group financing, expenses for projects sponsored by the            regulatory capital requirements, utilized economic capital and
Group and certain expenses that have not been allocated to         the historic and future potential return on capital. Transfer
the segments. In addition, Corporate Center includes consoli-      pricing, using market rates, is used to record interest income
dation and elimination adjustments required to eliminate inter-    and expense in each of the segments for this capital and fund-
company revenues and expenses.                                     ing. Included in this allocation are gains and losses recorded
    Minority interest-related revenues and expenses resulting      on the fair value of Credit Suisse own debt.
from the consolidation of certain private equity funds and other
entities in which the Group does not have a significant eco-       Taxes
nomic interest in such revenues and expenses are reported as       The Group’s segments are managed and reported on a pre-tax
minorities without significant economic interest. The consoli-     basis.
80




     Net revenues and income before taxes

                                                                                               in          % change

                                                                   1Q08        4Q07        1Q07     QoQ        YoY

     Net revenues (CHF million)
     Private Banking                                               3,355       3,478       3,366     (4)         0
     Investment Banking                                             (489)      2,741       6,582      –          –
     Asset Management                                                 63         354         776    (82)       (92)
     Corporate Center                                                 90         (12)        (55)     –          –
     Minority interests without significant economic interest         76       1,675         951    (95)       (92)
     Net revenues                                                  3,095       8,236      11,620    (62)       (73)

     Income before taxes and minority interests (CHF million)
     Private Banking                                               1,324       1,377       1,439     (4)        (8)
     Investment Banking                                           (3,460)       (849)      1,990    308          –
     Asset Management                                               (468)       (247)        257     89          –
     Corporate Center                                                 32         (78)       (110)     –          –
     Minority interests without significant economic interest         43       1,646         900    (97)       (95)
     Income/(loss) before taxes and minority interests            (2,529)      1,849       4,476      –          –




     Total assets

                                                                                           end of          % change

                                                                   1Q08        4Q07        1Q07     QoQ        YoY

     Total assets (CHF million)
     Private Banking                                             365,249     376,800     342,254     (3)         7
     Investment Banking                                          997,660 1,140,740 1,146,956        (13)       (13)
     Asset Management                                             26,673      27,784      23,016     (4)        16
     Corporate Center                                           (196,388)   (201,947)   (168,857)    (3)        16
     Minority interests without significant economic interest     14,800      17,303      16,318    (14)        (9)
     Total assets                                               1,207,994 1,360,680 1,359,687       (11)       (11)
                                                            Condensed consolidated financial statements – unaudited            81




Note 4   Net interest income


                                                                                                        in          % change

                                                                              1Q08       4Q07       1Q07     QoQ        YoY

Net interest income (CHF million)
Loans                                                                         2,363      2,508      2,047     (6)        15
Investment securities                                                           166        180        189     (8)       (12)
Trading assets                                                                4,601      5,389      5,482    (15)       (16)
Central bank funds sold, securities purchased under
resale agreements and securities borrowing transactions                       3,923      5,366      5,316    (27)       (26)
Other                                                                         1,706      1,778      1,658     (4)         3
Interest and dividend income                                                 12,759     15,221     14,692    (16)       (13)
Deposits                                                                     (3,253)    (3,844)    (3,704)   (15)       (12)
Short-term borrowings                                                          (170)      (211)      (218)   (19)       (22)
Trading liabilities                                                          (1,578)    (1,809)    (2,098)   (13)       (25)
Central bank funds purchased, securities sold under
repurchase agreements and securities lending transactions                    (3,912)    (5,341)    (4,831)   (27)       (19)
Long-term debt                                                               (1,003)    (1,097)    (1,243)    (9)       (19)
Other                                                                          (737)      (763)      (509)    (3)        45
Interest expense                                                            (10,653)   (13,065)   (12,603)   (18)       (15)
Net interest income                                                           2,106      2,156      2,089     (2)         1




Note 5   Commissions and fees


                                                                                                        in          % change

                                                                              1Q08       4Q07       1Q07     QoQ        YoY

Commissions and fees (CHF million)
Lending business                                                                226        352        647    (36)       (65)
Investment and portfolio management                                           1,460      1,717      1,445    (15)         1
Other securities business                                                        55         52         56      6         (2)
Fiduciary                                                                     1,515      1,769      1,501    (14)         1
Underwriting                                                                    191        374        615    (49)       (69)
Brokerage                                                                     1,358      1,491      1,487     (9)        (9)
Underwriting and brokerage                                                    1,549      1,865      2,102    (17)       (26)
Other customer services                                                         643        893        727    (28)       (12)
Commissions and fees                                                          3,933      4,879      4,977    (19)       (21)
82




     Note 6   Other revenues


                                                                                     in          % change

                                                                 1Q08     4Q07    1Q07    QoQ        YoY

     Other revenues (CHF million)
     Minority interests without significant economic interest       31    1,659    938    (98)       (97)
     Loans held-for-sale                                          (790)   (286)      2    176          –
     Long-lived assets held-for-sale                                 4      34       6    (88)       (33)
     Equity method investments                                      20      47      29    (57)       (31)
     Other investments                                            (496)    349     263      –          –
     Other                                                          64     118     100    (46)       (36)
     Other revenues                                             (1,167)   1,921   1,338     –          –




     Note 7   Provision for credit losses


                                                                                     in          % change

                                                                 1Q08     4Q07    1Q07    QoQ        YoY

     Provision for credit losses (CHF million)
     Allowance for loan losses                                      28       5      57    460        (51)
     Provisions for lending-related and other exposures            123     198      (4)   (38)         –
     Provision for credit losses                                   151     203      53    (26)       185




     Note 8   Compensation and benefits


                                                                                     in          % change

                                                                 1Q08     4Q07    1Q07    QoQ        YoY

     Compensation and benefits (CHF million)
     Salaries and bonuses                                        2,875    3,117   4,473    (8)       (36)
     Social security                                               197     163     247     21        (20)
     Other                                                         192     188     230      2        (17)
     Compensation and benefits                                   3,264    3,468   4,950    (6)       (34)
                                                                                          Condensed consolidated financial statements – unaudited                                               83




Note 9   General and administrative expenses


                                                                                                                                                           in                   % change

                                                                                                                         1Q08           4Q07           1Q07           QoQ             YoY

General and administrative expenses (CHF million)
Occupancy expenses                                                                                                         206            238            219           (13)            (6)
IT, machinery, etc.                                                                                                        115            148            125           (22)            (8)
Provisions and losses                                                                                                        60            74           (17)           (19)                 –
Travel and entertainment                                                                                                   148            183            146           (19)                 1
Professional services                                                                                                      467            745            495           (37)            (6)
Depreciation of property and equipment                                                                                     215            238            217           (10)            (1)
Amortization and impairment of other intangible assets                                                                       18            13               8            38           125
Other                                                                                                                      356            383            339             (7)                5
General and administrative expenses                                                                                      1,585          2,022         1,532            (22)                 3




Note 10   Earnings per share


                                                                                                                                                           in                   % change

                                                                                                                         1Q08           4Q07           1Q07           QoQ             YoY

Net income (CHF million)
Net income/(loss)                                                                                                      (2,148)            540         2,729               –                 –
Net income/(loss) available for common shares for basic
earnings per share                                                                                                     (2,148)            540         2,729               –                 –
Net income/(loss) available for common shares for diluted
earnings per share                                                                                                     (2,148)            540         2,729               –                 –

Weighted-average shares outstanding (million)
Weighted-average shares outstanding for basic
earnings per share                                                                                                     1,023.8       1,019.2        1,066.2               0            (4)
Dilutive share options and warrants                                                                                         0.0            7.4          13.5          (100)         (100)
Dilutive share awards                                                                                                       0.0          66.4           50.0          (100)         (100)
Weighted-average shares outstanding for diluted
earnings per share 1, 2                                                                                                1,023.8       1,093.0        1,129.7              (6)           (9)

Basic earnings per share (CHF)
Net income/(loss)                                                                                                        (2.10)          0.53           2.56              –                 –

Diluted earnings per share (CHF)
Net income/(loss)                                                                                                        (2.10)          0.49           2.42              –                 –

1
  Weighted-average potential common shares relating to instruments that were not dilutive for the respective periods (and therefore not included in the diluted earnings per share
calculation above) but could potentially dilute earnings per share in the future were 62.1 million, 46.3 million and 18.0 million for 1Q08, 4Q07 and 1Q07, respectively. 2 Due to the net
loss in 1Q08, 9 million weighted-average share options and warrants outstanding and 51 million weighted-average share awards outstanding were excluded from the diluted earnings per
share calculation, as the effect would be antidilutive.
84




     Note 11   Trading assets and liabilities


                                                                                                                                                          end of                    % change

                                                                                                                             1Q08           4Q07          1Q07            QoQ            YoY

     Trading assets (CHF million)
     Debt securities                                                                                                      190,004        208,913       234,095              (9)          (19)
     Equity securities 1                                                                                                  137,688        195,243       188,735             (29)          (27)
     Derivative instruments 2                                                                                               96,321        98,485        59,910              (2)            61
     Other                                                                                                                  22,670        29,442        32,310             (23)          (30)
     Trading assets                                                                                                       446,683        532,083       515,050             (16)          (13)

     Trading liabilities (CHF million)
     Short positions                                                                                                      109,737        122,720       161,693             (11)          (32)
     Derivative instruments 2                                                                                               77,131        79,089        55,279              (2)            40
     Trading liabilities                                                                                                  186,868        201,809       216,972              (7)          (14)

     1
       Including convertible bonds. 2 In accordance with the provisions of FSP FIN 39-1, the Group offset cash collateral receivables and payables of CHF 20.9 billion and CHF 17.2 billion,
     respectively, against the derivative positions as of the end of 1Q08. The Group adopted the provisions of FSP FIN 39-1 on a prospective basis as of January 1, 2008.
                                                                 Condensed consolidated financial statements – unaudited          85




Note 12     Loans


                                                                                                       end of          % change

                                                                                   1Q08      4Q07      1Q07     QoQ        YoY

Loans (CHF million)
Banks                                                                                 1         1         24      0        (96)
Commercial                                                                        45,971    45,351    43,404      1          6
Consumer                                                                          87,158    86,220    84,553      1          3
Public authorities                                                                 1,237     1,283     1,261     (4)        (2)
Lease financings                                                                   3,211     3,263     3,250     (2)        (1)
Switzerland                                                                      137,578   136,118   132,492      1          4
Banks                                                                             10,184    10,609     8,904     (4)        14
Commercial                                                                        60,184    71,846    51,775    (16)        16
Consumer                                                                          20,980    21,508    19,673     (2)         7
Public authorities                                                                 1,343     1,592     1,087    (16)        24
Lease financings                                                                    102       115       322     (11)       (68)
Foreign                                                                           92,793   105,670    81,761    (12)        13
Gross loans                                                                      230,371   241,788   214,253     (5)         8
Net (unearned income)/deferred expenses                                             (17)      (20)        27    (15)         –
Allowance for loan losses                                                        (1,186)   (1,234)   (1,449)     (4)       (18)
Net loans                                                                        229,168   240,534   212,831     (5)         8

Impaired loan portfolio (CHF million)
Gross impaired loans                                                               1,926     1,946     1,867     (1)         3
    of which with a specific allowance                                             1,758     1,563     1,587     12         11
    of which without a specific allowance                                           168       383       280     (56)       (40)



                                                                                                           in          % change

                                                                                   1Q08      4Q07      1Q07     QoQ        YoY

Allowance for loan losses (CHF million)
Balance at beginning of period                                                     1,234     1,316     1,484     (6)       (17)
Change in accounting 1                                                                0         0       (61)      –        100
Net additions charged to statements of income                                        28         5         57    460        (51)
Gross write-offs                                                                    (70)      (94)      (50)    (26)        40
Recoveries                                                                           36        20         20     80         80
Net write-offs                                                                      (34)      (74)      (30)    (54)        13
Provisions for interest                                                               5         1         (2)   400          –
Foreign currency translation impact and other adjustments, net                      (47)      (14)         1    236          –
Balance at end of period                                                           1,186     1,234     1,449     (4)       (18)
    of which a specific allowance                                                   830       850      1,036     (2)       (20)
    of which an inherent credit loss allowance                                      356       384       413      (7)       (14)

1
    Related to the adoption of SFAS 159.
86




     Note 13      Other assets and liabilities


                                                                             end of          % change

                                                         1Q08      4Q07      1Q07     QoQ        YoY

     Other assets (CHF million)
     Cash collateral on derivative instruments           8,181    18,766    14,596    (56)       (44)
     Derivative instruments used for hedging             1,016     1,065     1,530     (5)       (34)
     Brokerage receivables                              61,792    54,883    59,568     13          4
     Assets held-for-sale                               44,675    48,206    72,564     (7)       (38)
         of which loans                                 44,394    47,975    72,374     (7)       (39)
         of which real estate                             254       231       190      10         34
     Interest and fees receivable                        8,224    10,808     9,936    (24)       (17)
     Deferred tax assets                                 5,833     5,804     5,403      0          8
     Prepaid expenses                                     728       565       651      29         12
     Other                                              16,932    19,399    15,511    (13)         9
     Other assets                                      147,381   159,496   179,759     (8)       (18)

     Other liabilities (CHF million)
     Cash collateral on derivative instruments          32,452    49,307    24,878    (34)        30
     Derivative instruments used for hedging              109        84       624      30        (83)
     Brokerage payables                                 65,132    55,808    44,858     17         45
     Provisions 1                                        2,302     2,279     1,899      1         21
         of which off-balance sheet risk                  359       268         64     34        461
     Interest and fees payable                           9,678    11,829    12,672    (18)       (24)
     Current tax liabilities                             2,435     3,341     3,336    (27)       (27)
     Deferred tax liabilities                             947       787       823      20         15
     Failed sales                                        9,445    10,627    18,624    (11)       (49)
     Other                                              23,805    30,359    23,570    (22)         1
     Other liabilities                                 146,305   164,421   131,284    (11)        11

     1
         Includes provisions for bridge commitments.
                                                               Condensed consolidated financial statements – unaudited                             87




Note 14   Long-term debt


                                                                                                                end of                % change

                                                                                       1Q08         4Q07        1Q07          QoQ           YoY

Long-term debt (CHF million)
Senior                                                                              122,602      141,675      137,561         (13)         (11)
Subordinated                                                                          20,237       18,482      18,331            9           10
Long-term debt                                                                      142,839      160,157      155,892         (11)           (8)
  of which reported at fair value                                                     96,008     111,293      101,997         (14)           (6)




Note 15   Accumulated other comprehensive income


                                                                                                                                      Accumu-
                                                                                                Unrealized                          lated other
                                                                           Gains/                   gains/                             compre-
                                                                          (losses) Cumulative     (losses)    Actuarial   Net prior     hensive
                                                                          on cash translation            on      gains/    service     income/
                                                                      flow hedges adjustments    securities    (losses)       cost        (loss)

1Q08 (CHF million)
Balance at beginning of period                                              (74)     (4,661)          116       (942)       (131)       (5,692)
Increase/(decrease)                                                            0      (3,765)           21          (3)        (8)      (3,755)
Decrease due to equity method investments                                     11           0             0           0           0           11
Reclassification adjustments, included in net income                           0           0             0           7           7           14
Balance at end of period                                                    (63)     (8,426)          137       (938)       (132)       (9,422)

1Q07 (CHF million)
Balance at beginning of period                                              (42)     (2,878)          114     (2,110)       (117)       (5,033)
Increase/(decrease)                                                           (3)        (66)            7          (2)          0         (64)
Decrease due to equity method investments                                     (5)          0             0           0           0           (5)
Reclassification adjustments, included in net income                           1           0             4           0           0            5
Adoption of SFAS 159, net of tax                                               6           0             4           0           0           10
Balance at end of period                                                    (43)     (2,944)          129     (2,112)       (117)       (5,087)




Note 16   Tax


The Group is currently subject to ongoing tax audits and           CHF 230 million in unrecognized tax benefits within 12
inquiries with the tax authorities in a number of jurisdictions,   months of the reporting date.
including the US, the UK and Switzerland. Although the timing          The Group remains open to examination from federal,
of the completion of these audits is uncertain, it is reasonably   state, provincial or similar local jurisdictions from the following
possible that some of these audits and inquiries will be           years onward in these major countries: Japan – 2005;
resolved within 12 months of the reporting date. It is reason-     Switzerland – 2004; the UK – 1997; and the US – 1993.
ably possible that there will be a decrease between zero and
88




     Note 17     Employee share-based compensation and other benefits


     Share-based compensation                                           the remaining weighted-average requisite service period of 1.4
     The Group’s share-based compensation is an important part of       years.
     the overall compensation package for select employees and              The Group generally repurchases its own shares in the
     senior executives. Share-based compensation is designed to         open market to satisfy these obligations but can also issue
     promote employee retention and align the interests of employ-      new shares out of available conditional capital. In the first
     ees and shareholders. The majority of share-based compensa-        quarter of 2008, the Group delivered approximately 1.8 million
     tion is granted as part of the annual incentive performance        shares to employees.
     bonus subsequent to the fiscal year to which the incentive per-
     formance bonus relates. Share-based compensation is gener-         Credit Suisse Incentive Share Unit
     ally subject to restrictive features such as vesting, forfeiture   In January 2007, as part of the 2006 remuneration process,
     and blocking rules. For further information on share-based         the Group aligned its share-based compensation plans and
     compensation plans and the related fair value assumptions,         introduced Incentive Share Units (ISU). Previously granted
     refer to Note 27 – Employee share-based compensation and           awards will continue to settle under their original terms and
     other benefits in V – Consolidated financial statements –          are not affected by the ISU. An ISU is a unit that is similar to
     Credit Suisse Group in the Credit Suisse Annual Report 2007.       shares, but offers additional upside depending on the develop-
                                                                        ment of the Credit Suisse Group share price. For each ISU
     Compensation expense                                               granted, the employee will receive at least one Credit Suisse
     Compensation expense in any year includes a variable com-          Group share. In addition, the leverage component can deliver
     pensation expense for that year’s discretionary cash perform-      additional upside, which will be determined by the monthly
     ance bonus and fixed expenses for share-based awards               average Credit Suisse Group share price over the three-year
     granted in prior years. Recognition in the consolidated state-     period following the grant. Each ISU will vest at a rate of one-
     ments of income of expense relating to awards granted in prior     third of a share per year over three years, with the potential
     years is dependent primarily upon the vesting period, which is     additional shares vesting on the third anniversary of the grant
     determined by the plan, retirement eligibility of employees,       date, depending on the development of the leverage compo-
     moratorium periods and certain other terms.                        nent.
         Total compensation expense for share-based compensa-               The compensation expense recognized during the first
     tion recognized in the consolidated statements of income in        quarter of 2008 related to ISUs was CHF 619 million. The
     compensation and benefits was CHF 877 million and CHF              estimated unrecognized compensation expense related to
     646 million in the first quarters of 2008 and 2007, respec-        ISUs as of March 31, 2008 was CHF 3,693 million and will be
     tively. As of March 31, 2008, the total estimated unrecognized     recognized over a period of three years, subject to early retire-
     compensation expense related to non-vested share-based             ment rules.
     compensation of CHF 4,393 million will be recognized over


     Incentive Share Unit activities

     in 1Q08                                                                                                                          ISU

     Number of awards (million)
     Balance at beginning of period                                                                                                  25.4
     Granted                                                                                                                         46.5
     Settled                                                                                                                         (0.3)
     Forfeited                                                                                                                       (0.1)
     Balance at end of period                                                                                                        71.5
       of which vested                                                                                                                8.2
       of which unvested                                                                                                             63.3
                                                                 Condensed consolidated financial statements – unaudited                89




Performance Incentive Plan                                           the achievement of: i) earnings performance as compared to
As part of its annual incentive performance bonus process for        predefined targets; and ii) share price performance compared
2004 and 2005, the Group granted Performance Incentive               to predefined targets and share price performance relative to
Plan (PIP) units during 2005 (PIP I) and 2006 (PIP II),              peers.
respectively. PIP units are long-term retention incentive                The compensation expense recognized during the first
awards requiring continued employment with the Group, sub-           quarter of 2008 related to PIP I and PIP II was CHF 86 mil-
ject to restrictive covenants and cancellation provisions, and       lion. The estimated unrecognized compensation expense
vest evenly over a five-year period. Each PIP unit will settle for   related to PIP I and PIP II as of March 31, 2008 was CHF
a specified number of Credit Suisse Group registered shares          226 million. None of the PIP units were deliverable as of
subsequent to the fifth anniversary of the grant date based on       March 31, 2008.


Performance Incentive Plan activities

in 1Q08                                                                                                              PIP II     PIP I

Number of awards (million)
Balance at beginning of period                                                                                         6.5      12.3
Granted                                                                                                                0.1       0.0
Settled                                                                                                                0.0       0.0
Forfeited                                                                                                              0.0       0.0
Balance at end of period                                                                                               6.6      12.3
  of which vested                                                                                                      2.8       7.9
  of which unvested                                                                                                    3.8       4.4




Shares                                                               and special awards was CHF 172 million. The estimated
In addition to the PIP, the Group’s share-based compensation         unrecognized compensation expense related to these awards
in prior years has included three different types of share           as of March 31, 2008 was CHF 474 million.
awards: phantom shares; Longevity Premium Awards (LPA);
and special awards. These share awards entitle the holder to         Share options
receive one Credit Suisse Group registered share subject to          Options were a substantial component of the Group’s share-
continued employment with the Group, restrictive covenants           based program prior to 2004. The Group has discontinued the
and cancellation provisions and generally vest between zero          practice of issuing options and the majority of the original
and three years.                                                     grants have since vested. Share options were granted with an
    The compensation expense recognized in the first quarter         exercise price equal to the market price of Credit Suisse
of 2008 related to shares awarded under phantom share, LPA           Group’s shares on the date of grant and expire after ten years.




Note 18     Pension


Credit Suisse Group previously disclosed in the Credit Suisse        2008, CHF 300 million of contributions have been made,
Annual Report 2007, that it expected to contribute CHF 574           including approximately CHF 140 million as a special contribu-
million to the defined benefit pension plans and to other post-      tion to the UK plan.
retirement defined benefit plans in 2008. As of March 31,
90




                                                                                                                                                                        in                  % change

                                                                                                                                    1Q08            4Q07           1Q07             QoQ          YoY

     Total pension costs (CHF million)
     Service costs on benefit obligation                                                                                                67             74             80              (9)        (16)
     Interest costs on benefit obligation                                                                                             153             139            139              10           10
     Expected return on plan assets                                                                                                  (196)          (182)          (184)               8            7
     Amortization of recognized prior service cost                                                                                        9              8              7             13           29
     Amortization of recognized actuarial (gains)/losses                                                                                11             36             32            (69)         (66)
     Net periodic pension costs                                                                                                         44             75             74            (41)         (41)




     Note 19     Guarantees and commitments


     Guarantees

                                                                                                                   Maturity       Maturity
                                                                                                                       less       greater           Total          Total
                                                                                                                      than           than          gross            net          Carrying   Collateral
                                                                                                                                                                             1
     end of                                                                                                         1 year         1 year         amount         amount             value    received

     1Q08 (CHF million)
     Credit guarantees and similar instruments                                                                       3,755          5,322          9,077          7,853              313       5,440
     Performance guarantees and similar instruments                                                                  7,173          4,158         11,331          9,694               95       3,078
     Securities lending indemnifications                                                                           34,066                 0       34,066         34,066                0     34,066
                                                                                                                                                                                                         2
     Derivatives                                                                                                  145,323        928,793 1,074,116 1,074,116                     66,485             –
     Other guarantees                                                                                                3,094          1,043          4,137          4,057                2       1,888
     Total guarantees                                                                                             193,411        939,316 1,132,727 1,129,786                     66,895      44,472

     4Q07 (CHF million)
     Credit guarantees and similar instruments                                                                       3,428          6,041          9,469          8,083              223       5,396
     Performance guarantees and similar instruments                                                                  4,422          8,130         12,552         10,802              141       3,588
     Securities lending indemnifications                                                                           40,006                 0       40,006         40,006                0     40,006
                                                                                                                                                                                                         2
     Derivatives                                                                                                  139,154        991,570 1,130,724 1,130,724                     38,866             –
     Other guarantees                                                                                                3,225          1,008          4,233          4,198                3       1,862
     Total guarantees                                                                                             190,235 1,006,749 1,196,984 1,193,813                          39,233      50,852

     1                                                                               2
         Total net amount is computed as the gross amount less any participations.       Collateral for derivatives accounted for as guarantees is not considered significant.



     Guarantees provided by the Group are broadly classified as                                          liquidation of a deposit-taking bank. Upon occurrence of a
     follows: credit guarantees and similar instruments, perform-                                        payout event, the Group’s contribution will be calculated based
     ance guarantees and similar instruments, securities lending                                         on its share of privileged deposits in proportion to total privi-
     indemnifications, derivatives and other guarantees. For a                                           leged deposits. These deposit insurance guarantees are
     detailed description of guarantees, refer to Note 31 – Guaran-                                      reflected in other guarantees. The Group believes that the
     tees and commitments in V – Consolidated financial state-                                           likelihood of having to pay under these agreements is remote.
     ments – Credit Suisse Group in the Credit Suisse Annual
     Report 2007.
         Deposit-taking banks in Switzerland and certain other
     European countries are required to ensure the payout of privi-
     leged deposits in case of specified restrictions or compulsory
                                                                                Condensed consolidated financial statements – unaudited                         91




Disposal-related contingencies and other                                          obligated to pay. As a normal part of issuing its own securities,
indemnifications                                                                  the Group typically agrees to reimburse holders for additional
The Group has certain guarantees for which its maximum con-                       tax-withholding charges or assessments resulting from
tingent liability cannot be quantified. These guarantees are not                  changes in applicable tax laws or the interpretation of those
reflected in the table above and are discussed below.                             laws. Securities that include these agreements to pay addi-
                                                                                  tional amounts generally also include a related redemption or
Disposal-related contingencies                                                    call provision if the obligation to pay the additional amounts
In connection with the sale of assets or businesses, the Group                    results from a change in law or its interpretation and the obli-
sometimes provides the acquirer with certain indemnification                      gation cannot be avoided by the issuer taking reasonable
provisions. These indemnification provisions vary by counter-                     steps to avoid the payment of additional amounts. Since such
party in scope and duration and depend upon the type of                           potential obligations are dependent on future changes in tax
assets or businesses sold. These indemnification provisions                       laws, the related liabilities the Group may incur as a result of
generally shift the potential risk of certain unquantifiable and                  such changes cannot be reasonably estimated. In light of the
unknowable loss contingencies (e.g., relating to litigation, tax                  related call provisions typically included, the Group does not
and intellectual property matters) from the acquirer to the                       expect any potential liabilities in respect of tax gross-ups to
seller. The Group closely monitors all such contractual agree-                    be material.
ments in order to ensure that indemnification provisions are                          The Group is a member of numerous securities exchanges
adequately provided for in the Group’s consolidated financial                     and clearing houses and may, as a result of its membership
statements.                                                                       arrangements, be required to perform if another member
                                                                                  defaults. The Group has determined that it is not possible to
Other indemnifications                                                            estimate the maximum amount of these obligations and
The Group provides indemnifications to certain counterparties                     believes that any potential requirement to make payments
in connection with its normal operating activities, for which it is               under these arrangements is remote.
not possible to estimate the maximum amount that it could be


Other commitments

                                                                                                   Maturity   Maturity
                                                                                                       less   greater       Total      Total
                                                                                                      than       than      gross        net        Collateral
                                                                                                                                               1
end of                                                                                              1 year     1 year     amount     amount         received

1Q08 (CHF million)
Irrevocable commitments under documentary credits                                                   5,365          83      5,448      4,674           2,027
Loan commitments                                                                                  180,982     48,472     229,454    229,314        156,894
Forward reverse repurchase agreements                                                              55,665           0     55,665     55,665         55,665
Other commitments                                                                                   3,369      1,529       4,898      4,898             410
Total other commitments                                                                           245,381     50,084     295,465    294,551        214,996

4Q07 (CHF million)
Irrevocable commitments under documentary credits                                                   5,874          96      5,970      5,240           2,448
Loan commitments                                                                                  190,826     58,199     249,025    248,773        171,735
Forward reverse repurchase agreements                                                              40,403           0     40,403     40,403         40,403
Other commitments                                                                                   2,621      2,264       4,885      4,885             347
Total other commitments                                                                           239,724     60,559     300,283    299,301        214,933

1
    Total net amount is computed as the gross amount less any participations.



Other commitments of the Group are broadly classified as fol-                     commitments, refer to Note 31 – Guarantees and commit-
lows: irrevocable commitments under documentary credits,                          ments in V – Consolidated financial statements – Credit Suisse
loan commitments, forward reverse repurchase agreements                           Group in the Credit Suisse Annual Report 2007.
and other commitments. For a detailed description of these
92




     Note 20   Variable interest entities


     In the normal course of business, the Group enters into trans-          ment judgment. In the event consolidation of a VIE is required,
     actions with, and makes use of, special purpose entities                the exposure to the Group is limited to that portion of the VIE’s
     (SPE). SPEs typically qualify either as qualified special pur-          assets attributable to any beneficial interest held by the Group
     pose entities (QSPE) according to SFAS No. 140, “Account-               prior to any risk management activities to hedge the Group’s
     ing for Transfers and Servicing of Financial Assets and Extin-          net exposure. Any interests held in the VIE by third parties,
     guishments of Liabilities” (SFAS 140) or variable interest              even though consolidated by the Group, will not typically
     entities (VIEs) according to FIN 46(R), “Consolidation of Vari-         impact our results of operations.
     able Interest Entities – an interpretation of ARB No. 51” (FIN              The amounts shown as total assets of consolidated and
     46(R)). At each balance sheet date, QSPEs and VIEs are                  non-consolidated VIEs for which the Group has involvement
     reviewed for events that may trigger reassessment of the enti-          represent the total assets of the VIEs even though the Group’s
     ties’ classification. For a detailed description of QSPEs and           involvement may be significantly less due to interests held by
     VIEs, refer to Note 32 – Transfers and servicing of financial           third-party investors. The Group’s maximum exposure to loss
     assets in V – Consolidated financial statements – Credit                is different from the carrying value of the VIEs assets. This
     Suisse Group in the Credit Suisse Annual Report 2007.                   maximum loss exposure consists of the carrying value of the
         As a normal part of its business, the Group engages in var-         Group’s interests held as trading assets, derivatives or loans
     ious transactions that include entities which are considered            and the notional amount of guarantees to VIEs, rather than
     VIEs and are broadly grouped into three primary categories:             the amount of total assets of the VIEs. The maximum expo-
     CDOs, commercial paper (CP) conduits and financial interme-             sure to loss does not reflect our risk management activities,
     diation. The Group consolidates all VIEs for which it is the pri-       including effects from financial instruments that the Group
     mary beneficiary. VIEs may be sponsored by the Group, unre-             may utilize to hedge the risks inherent in these VIEs. The eco-
     lated third parties or clients.                                         nomic risks associated with VIE exposures held by the Group,
         Application of the accounting requirements for consolida-           together with all relevant risk mitigation initiatives, are included
     tion of VIEs may require the exercise of significant manage-            in the Group’s risk management framework.


     Consolidated and non-consolidated VIEs

                                                                                                                                 end of   % change

                                                                                                                      1Q08       4Q07        QoQ

     Consolidated VIEs (CHF million)
     CDO                                                                                                              5,093      6,672        (24)
     CP conduit                                                                                                           0          1       (100)
     Financial intermediation                                                                                        15,406    17,404         (11)
     Total assets of consolidated VIEs                                                                               20,499    24,077         (15)

     Non-consolidated VIEs (CHF million)
     CDO                                                                                                              9,537    16,360         (42)
     CP conduit                                                                                                      11,645    12,642          (8)
     Financial intermediation                                                                                        84,877    99,244         (14)
     Total assets of non-consolidated VIEs                                                                         106,059    128,246         (17)

     Total maximum exposure to loss of non-consolidated VIEs (CHF million)
     CDO                                                                                                              2,479      2,453          1
     CP conduit                                                                                                      16,556    17,347          (5)
     Financial intermediation                                                                                        20,849    20,512           2
                                                               Condensed consolidated financial statements – unaudited                   93




Collateralized debt obligations                                         As of March 31, 2008, the Group’s maximum loss expo-
As part of its structured finance business, the Group pur-         sure to this non-consolidated CP conduit was CHF 16.5 bil-
chases loans and other debt obligations from and on behalf of      lion, which consisted of CHF 11.6 billion of funded assets and
clients for the purpose of securitization. The loans and other     the CP conduit’s commitments to purchase CHF 4.9 billion of
debt obligations are sold to VIEs that issue CDOs.                 additional assets. As of December 31, 2007, the Group’s
    In connection with its CDO activities, the Group may act as    maximum loss exposure was CHF 17.4 billion.
underwriter, placement agent or asset manager and may ware-             The Group believes that the likelihood of incurring a loss
house assets prior to the closing of a transaction.                equal to this maximum exposure is remote because the assets
    The Group has consolidated all CDO VIEs for which it is        held by the CP conduit, after giving effect to related asset-
the primary beneficiary, resulting in the inclusion by the Group   specific credit enhancement primarily provided by the clients,
of approximately CHF 5.1 billion and CHF 6.7 billion of assets     are classified as investment grade. If Alpine’s assets were
and liabilities of these VIEs in the consolidated balance sheets   consolidated as of March 31, 2008, we estimate that the val-
as of March 31, 2008 and December 31, 2007, respectively.          uation reductions of these assets would not have been mate-
The beneficial interests issued by these VIEs are payable          rial to our results of operations. The Group’s economic risks
solely from the cash flows of the related collateral and third-    associated with the CP conduit are included in the Group’s risk
party creditors of these VIEs do not have recourse to the          management framework including counterparty, economic
Group in the event of default.                                     capital and scenario analysis.
    The Group also retains certain debt and equity interests in
open CDO VIEs that are not consolidated because the Group          Financial intermediation
is not the primary beneficiary. The Group’s exposure in these      The Group has significant involvement with VIEs in its role as a
CDO transactions typically consists of the interests retained in   financial intermediary on behalf of clients. The Group has con-
connection with its underwriting or market-making activities.      solidated all VIEs related to financial intermediation for which it
We believe the Group’s maximum loss exposure is generally          is the primary beneficiary, resulting in the inclusion by the
equal to the carrying value of these retained interests, which     Group of approximately CHF 15.4 billion and CHF 17.4 billion
are reported as trading assets and carried at fair value and       of assets and liabilities of these VIEs in the consolidated bal-
totaled CHF 2.5 billion as of both March 31, 2008 and              ance sheets as of March 31, 2008 and December 31, 2007,
December 31, 2007.                                                 respectively. Approximately 55% of the total assets relate to
    The Group’s maximum exposure to loss does not include          investment structures which the Group sponsors, manages
any effects from financial instruments used to hedge the risks     and distributes.
of the VIEs. The economic risks associated with CDO VIE                The Group’s maximum loss exposure to non-consolidated
exposures held by the Group, together with all relevant risk       VIEs related to financial intermediation activities was CHF
mitigation initiatives, are included in the Group’s risk manage-   20.8 billion and CHF 20.5 billion as of March 31, 2008 and
ment framework.                                                    December 31, 2007, respectively. This exposure consists of
                                                                   the carrying value of the Group’s interests held as trading
Commercial paper conduits                                          assets, derivatives or loans and the notional amount of guar-
The Group continues to act as the administrator and provider       antees to VIEs, not the total assets of the VIEs. The Group
of liquidity and credit enhancement facilities for one CP con-     considers the likelihood of incurring a loss equal to the maxi-
duit, Alpine Securitization Corp., a client-focused multi-seller   mum exposure to be remote because of the Group’s risk miti-
conduit vehicle (Alpine). The Group does not have any owner-       gation efforts, including hedging strategies, collateral arrange-
ship interest in Alpine.                                           ments and the risk of loss that is retained by investors. The
     The overall average maturity of the conduit’s outstanding     Group’s economic risks associated with consolidated and non-
CP was approximately 23 days as of March 31, 2008. Alpine’s        consolidated VIE exposures arising from financial intermedia-
commercial paper has the highest short-term ratings from the       tion, together with all relevant risk mitigation initiatives, are
major independent external rating agencies. Alpine’s assets        included in the Group’s risk management framework.
had a weighted average rating of AA-, based on the lowest of           Financial intermediation is broadly grouped into the follow-
each asset’s external or internal rating, and an average matu-     ing categories: lending arrangements, certain securitizations
rity of 3.1 years as of March 31, 2008. The Group’s commit-        and investment structures.
ment to this CP conduit consists of obligations under liquidity        The Group’s lending arrangements are not consolidated by
agreements and a program-wide credit enhancement agree-            the Group as the clients are the sponsors of the VIEs and are
ment.                                                              deemed the primary beneficiaries. These structures are estab-
94




     lished to purchase, lease or otherwise finance and manage                 The Group may have various relationships with investment
     clients’ assets. The maximum exposure to loss is equivalent to        structures which the Group sponsors, manages and distrib-
     the carrying value of the Group’s loan exposure, which is sub-        utes, including in the form of structurer, investment advisor,
     ject to the same credit risk management procedures as loans           investment manager, administrator, custodian, underwriter,
     issued directly to clients. The Group considers the likelihood of     placement agent, market maker or as prime broker. The max-
     incurring a loss equal to the maximum exposure to be remote           imum exposure to loss consists of the fair value of instruments
     because of the Group’s risk mitigation efforts which includes         issued by such structures, which are held by the Group as a
     over-collateralization and effective monitoring to ensure that a      result of underwriting or market-making activities, the fair
     sufficient loan-to-value ratio is maintained.                         value of any derivative exposure resulting from prime broker-
         The Group acts as underwriter and market maker, liquidity         age activities and our exposure resulting from principal protec-
     provider, derivative counterparty or provider of credit enhance-      tion and redemptions features. The investors typically retain
     ments to VIEs related to certain securitization transactions. In      the risk of loss on such transactions but the Group may pro-
     addition, the Group has exposure to third-party securitization        vide principal protection on the securities to limit the investors’
     VIEs as a result of the securities purchased from our money           exposure to downside risk. In addition, certain structures are
     market funds in the second half of 2007 and the first quarter         designed to include redemption mechanisms which allow
     of 2008. The Group’s maximum loss exposure is generally               investors to redeem their participating interests in the respec-
     equal to the carrying value of the retained interests and deriv-      tive VIEs within the agreed redemption periods. The Group’s
     ative positions, if any, plus the exposure arising from any credit    maximum exposure to loss does not include any effects from
     enhancements provided by us. The Group’s maximum expo-                financial instruments used to hedge the risk of the VIEs.
     sure to loss does not include any effects from financial instru-
     ments used to hedge the risks of the VIEs.




     Note 21   Fair value of financial instruments


     For further information on the fair value of financial instru-        high-yield debt securities, distressed debt securities, certain
     ments, refer to Note 33 – Financial instruments in V – Consol-        CDOs, certain OTC derivatives, certain asset-backed and
     idated financial statements – Credit Suisse Group in the Credit       mortgage-backed securities, non-traded equity securities, pri-
     Suisse Annual Report 2007.                                            vate equity and other long-term investments.
         The fair value of the majority of the Group’s financial               The Group has availed itself of the simplification in
     instruments is based on quoted prices in active markets or            accounting offered under the fair value option, primarily in the
     observable inputs. These instruments include government and           Investment Banking and Asset Management segments. This
     agency securities, commercial paper, most investment-grade            has been accomplished generally by electing the fair value
     corporate debt, most high-yield debt securities, exchange-            option, both at initial adoption and for subsequent transac-
     traded and certain over-the-counter (OTC) derivative instru-          tions, on items impacted by the hedge accounting require-
     ments, most CDOs, most asset-backed and mortgage-backed               ments of SFAS 133. That is, for instruments for which there
     securities, certain residential mortgage whole loans and listed       was an inability to achieve hedge accounting and for which we
     equity securities.                                                    are economically hedged, we have elected the fair value
         In addition, the Group holds financial instruments for which      option. Likewise, where we manage an activity on a fair value
     no prices are available and which have little or no observable        basis but previously have been unable to achieve fair value
     inputs. For these instruments, the determination of fair value        accounting, we have utilized the fair value option to align our
     requires subjective assessment and varying degrees of judg-           risk management reporting to our financial accounting.
     ment depending on liquidity, concentration, pricing assump-
     tions and the risks affecting the specific instrument. In such        Fair value option
     circumstances, valuation is determined based on manage-               Upon adoption of SFAS 159, the Group elected fair value for
     ment’s own assumptions about the assumptions that market              certain of its financial statement captions. The following repre-
     participants would use in pricing the asset or liability (including   sents a change to the Group’s fair value elections in 1Q08.
     assumptions about risk). These instruments include certain
                                                                Condensed consolidated financial statements – unaudited                  95




Long-term debt                                                        directly or indirectly. These inputs include: (i) quoted prices
The Group’s long-term debt includes debt issuances managed            for similar assets or liabilities in active markets; (ii) quoted
by its Global Treasury department that do not contain deriva-         prices for identical or similar assets or liabilities in markets
tive features (vanilla debt). The Group actively manages the          that are not active, that is, markets in which there are few
interest rate risk on these instruments with derivatives; in par-     transactions for the asset or liability, the prices are not
ticular, fixed-rate debt is hedged with receive-fixed, pay-float-     current or price quotations vary substantially either over
ing interest rate swaps. Upon adoption of SFAS 159, the               time or among market makers, or in which little informa-
Group availed itself of the simplification objective of the fair      tion is publicly available; (iii) inputs other than quoted
value option and elected fair value for this fixed-rate debt in       prices that are observable for the asset or liability; or (iv)
order to achieve a similar financial reporting outcome as that        inputs that are derived principally from or corroborated by
achieved under hedge accounting per the guidance of SFAS              observable market data by correlation or other means.
133. Given the significant volatility due to changes in the         p Level 3: Inputs that are unobservable for the asset or lia-
Group’s credit spreads, the Group did not elect to apply the          bility. These inputs reflect the Group’s own assumptions
fair value option to fixed-rate debt issued by the Group in           about the assumptions that market participants would use
1Q08 and instead will apply hedge accounting.                         in pricing the asset or liability (including assumptions about
                                                                      risk). These inputs are developed based on the best infor-
Fair value hierarchy                                                  mation available in the circumstances, which include the
The levels of the fair value hierarchy are defined as follows in      Group’s own data. The Group’s own data used to develop
SFAS 157:                                                             unobservable inputs is adjusted if information indicates
p Level 1: Quoted prices (unadjusted) in active markets for           that market participants would use different assumptions.
   identical assets or liabilities that the Group has the ability
   to access. This level of the fair value hierarchy provides       There were no changes to the Group’s valuation techniques
   the most reliable evidence of fair value and is used to          from those described in Note 33 – Financial instruments in V –
   measure fair value whenever available.                           Consolidated financial statements – Credit Suisse Group in the
p Level 2: Inputs other than quoted prices included within          Credit Suisse Annual Report 2007.
   level 1 that are observable for the asset or liability, either
96




     Fair value of assets and liabilities measured at fair value on a recurring basis

                                                                                                                             Quoted
                                                                                                                           prices in
                                                                                                                               active
                                                                                                                         markets for     Significant   Significant
                                                                                                                           identical           other   unobserv-                           Total
                                                                                                                          assets or      observable           able        Impact              at
                                                                                                                           liabilities        inputs        inputs             of           fair
                                                                                                                                                                                    1
     end of 1Q08                                                                                                             (level1)      (level 2)     (level 3)        netting         value

     Assets (CHF million)
     Central bank funds sold, securities purchased under
     resale agreements and securities borrowing transactions                                                                        0     158,948                0              0       158,948
     Securities received as collateral                                                                                       18,257          2,422               0              0        20,679
     Trading assets                                                                                                         204,571       701,496         56,566      (515,950)         446,683
     Investment securities                                                                                                   13,961            894              10              0        14,865
     Other investments                                                                                                           347         5,794        16,792                0        22,933
     Loans                                                                                                                          0       19,057          9,625               0        28,682
     Other intangible assets                                                                                                        0              0          129               0          129
     Other assets                                                                                                              4,160        23,793        20,869           (249)         48,573
     Total assets at fair value                                                                                             241,296       912,404        103,991      (516,199)         741,492

     Liabilities (CHF million)
     Due to banks                                                                                                                   0        6,036               4              0         6,040
     Customer deposits                                                                                                              0        5,288               0              0         5,288
     Central bank funds purchased, securities sold under
     repurchase agreements and securities lending transactions                                                                      0     112,867                0              0       112,867
     Obligations to return securities received as collateral                                                                 18,257          2,422               0              0        20,679
     Trading liabilities                                                                                                     97,461       584,012         17,752      (512,357)         186,868
     Short-term borrowings                                                                                                          0        4,109            583               0         4,692
     Long-term debt                                                                                                                 0       69,259        26,749                0        96,008
     Other liabilities                                                                                                              0       21,225          3,315          (109)         24,431
     Total liabilities at fair value                                                                                        115,718       805,218         48,403      (512,466)         456,873
                                                                                                                                                                                    2
     Net assets/liabilities at fair value                                                                                   125,578       107,186         55,588         (3,733)        284,619

     1
       Derivative contracts are reported on a gross basis by level. The impact of netting represents an adjustment related to counterparty netting. 2 In accordance with the provisions of FSP
     FIN 39-1, the Group offset cash collateral receivables and payables of CHF 20.9 billion and CHF 17.2 billion, respectively, against the derivative positions as of the end of 1Q08. The
     Group adopted the provisions of FSP FIN 39-1 on a prospective basis as of January 1, 2008.
                                                                                              Condensed consolidated financial statements – unaudited                                            97




Fair value of assets and liabilities measured at fair value on a recurring basis

                                                                                                                           Quoted
                                                                                                                         prices in
                                                                                                                             active
                                                                                                                       markets for     Significant     Significant
                                                                                                                         identical           other     unobserv-                         Total
                                                                                                                        assets or      observable             able      Impact              at
                                                                                                                         liabilities        inputs          inputs           of           fair
                                                                                                                                                                                  1
end of 4Q07                                                                                                                (level1)      (level 2)       (level 3)      netting         value

Assets (CHF million)
Central bank funds sold, securities purchased under
resale agreements and securities borrowing transactions                                                                            0     183,719                0            0        183,719
Securities received as collateral                                                                                           25,488          2,826               0            0         28,314
Trading assets                                                                                                            252,055        565,607          60,621     (346,200)        532,083
Investment securities                                                                                                       14,451            992              10            0         15,453
Other investments                                                                                                              565          6,893         17,737             0         25,195
Loans                                                                                                                              0      25,409           5,638             0         31,047
Other intangible assets                                                                                                            0               0         179             0           179
Other assets                                                                                                                 4,092        37,248           8,080          (94)         49,326
Total assets at fair value                                                                                                296,651        822,694          92,265     (346,294)        865,316

Liabilities (CHF million)
Due to banks                                                                                                                       0        6,041               6            0          6,047
Customer deposits                                                                                                                  0        6,134               0            0          6,134
Central bank funds purchased, securities sold under
repurchase agreements and securities lending transactions                                                                          0     140,424                0            0        140,424
Obligations to return securities received as collateral                                                                     25,488          2,826               0            0         28,314
Trading liabilities                                                                                                       111,776        416,688          19,597     (346,252)        201,809
Short-term borrowings                                                                                                              0        7,426            694             0          8,120
Long-term debt                                                                                                                     0      80,061          31,232             0        111,293
Other liabilities                                                                                                                  0      24,102             173          (42)         24,233
Total liabilities at fair value                                                                                           137,264        683,702          51,702     (346,294)        526,374
Net assets/liabilities at fair value                                                                                      159,387        138,992          40,563             0        338,942

1
    Derivative contracts are reported on a gross basis by level. The impact of netting represents an adjustment related to counterparty netting.
98




     Fair value of assets and liabilities measured at fair value on a recurring basis for level 3

                                                                                                                                                             Private
                                                                                                                                           Derivatives,       equity
     1Q08                                                                                                                                           net investments       Other         Total

     Assets (CHF million)
     Balance at beginning of period                                                                                                              5,631       17,737     49,569        72,937
     Net realized/unrealized gains/(losses) included in net revenues                                                                             1,979       (1,886)    (9,741)       (9,648)
     Purchases, sales, issuances and settlements                                                                                                  (578)         934        446           802
     Transfers in and/or out of level 3                                                                                                         (1,368)           7     23,653        22,292
                                                                                                                                                                                  1
     Balance at end of period                                                                                                                    5,664       16,792     63,927        86,383

     Liabilities (CHF million)
                                                                                                                                                                                  2
     Balance at beginning of period                                                                                                                      –        –     32,374        32,374
     Net realized/unrealized (gains)/losses included in net revenues                                                                                     –        –     (4,818)       (4,818)
     Purchases, sales, issuances and settlements                                                                                                         –        –       (851)         (851)
     Transfers in and/or out of level 3                                                                                                                  –        –      4,090         4,090
                                                                                                                                                                                  2
     Balance at end of period                                                                                                                            –        –     30,795        30,795
     Net                                                                                                                                         5,664       16,792     33,132        55,588

     Total realized/unrealized gains/(losses) included in net revenues                                                                           1,979       (1,886)    (4,923)       (4,830)

     1                                                                                                        2
         Includes primarily CMBS, RMBS, CDO, corporate loans and internally managed private equity funds.         Includes primarily structured notes.




     Fair value of assets and liabilities measured at fair value on a recurring basis for level 3

                                                                                                                                                             Private
                                                                                                                                           Derivatives,       equity
     1Q07                                                                                                                                           net investments       Other         Total

     Assets (CHF million)
     Balance at beginning of period                                                                                                                 189      14,953     10,712        25,854
     Net realized/unrealized gains/(losses) included in net revenues                                                                                 55         980        379         1,414
     Purchases, sales, issuances and settlements                                                                                                    666        (272)     5,265         5,659
     Transfers in and/or out of level 3                                                                                                          1,335          (23)     3,099         4,411
                                                                                                                                                                                  1
     Balance at end of period                                                                                                                    2,245       15,638     19,455        37,338

     Liabilities (CHF million)
                                                                                                                                                                                  2
     Balance at beginning of period                                                                                                                      –        –     27,939        27,939
     Net realized/unrealized (gains)/losses included in net revenues                                                                                     –        –        (18)          (18)
     Purchases, sales, issuances and settlements                                                                                                         –        –      5,225         5,225
     Transfers in and/or out of level 3                                                                                                                  –        –       (721)         (721)
                                                                                                                                                                                  2
     Balance at end of period                                                                                                                            –        –     32,425        32,425
     Net                                                                                                                                         2,245       15,638    (12,970)        4,913

     Total realized/unrealized gains/(losses) included in net revenues                                                                               55         980        397         1,432

     1                                                                                     2
         Includes primarily CMBS, RMBS, CDO and internally managed private equity funds.       Includes primarily structured notes.
                                                                     Condensed consolidated financial statements – unaudited                               99




Gains and losses on assets and liabilities measured at fair value on a recurring basis using
significant unobservable inputs (level 3)

                                                                                                          1Q08                                    1Q07

                                                                              Trading       Other         Total       Trading       Other         Total
in                                                                          revenues     revenues     revenues      revenues     revenues     revenues

Gains and losses on assets and liabilities (CHF million)
Net realized/unrealized gains/(losses) included in net revenues              (5,478)          648       (4,830)          540          892         1,432
Whereof:
     Changes in unrealized gains or losses relating
     to assets and liabilities still held as of the reporting date             (907)          245         (662)        1,187          214         1,401




Both observable and unobservable inputs may be used to                 Nonrecurring fair value changes
determine the fair value of positions that have been classified        Certain assets and liabilities are measured at fair value on a
within level 3. As a result, the unrealized gains and losses for       nonrecurring basis; that is, they are not measured at fair value
assets and liabilities within level 3 presented in the table above     on an ongoing basis but are subject to fair value adjustments
may include changes in fair value that were attributable to both       in certain circumstances (for example, when there is evidence
observable and unobservable inputs.                                    of impairment). As of March 31, 2008 and December 31,
    The Group employs various economic hedging techniques              2007, CHF 5.9 billion and CHF 6.3 billion, respectively, of
in order to manage risks, including risks in level 3 positions.        loans have been recorded at fair value, of which CHF 3.6 bil-
Such techniques may include the purchase or sale of financial          lion and CHF 5.7 billion, respectively, were classified as level
instruments that are classified in levels 1 and/or 2. The real-        2 and CHF 2.3 billion and CHF 0.6 billion, respectively, were
ized and unrealized gains and losses for assets and liabilities in     classified as level 3.
level 3 presented in the table above do not reflect the related
realized or unrealized gains and losses arising on economic
hedging instruments classified in levels 1 and/or 2.


Difference between the aggregate fair value and the aggregate unpaid principal balances of loans
and financial instruments

                                                                                                          1Q08                                    4Q07

                                                                           Aggregate    Aggregate                  Aggregate    Aggregate
                                                                                 fair      unpaid                        fair      unpaid
end of                                                                         value      principal   Difference       value      principal   Difference

Loans (CHF million)
Non-performing loans (90 days or more past due)                                  178          206          (28)            0             0            0
Non-accrual loans                                                                330          732         (402)          232          459         (227)

Financial instruments (CHF million)
Central bank funds sold, securities purchased under
resale agreements and securities borrowing transactions                     158,948      158,224            724     183,719      183,303            416
Loans                                                                         28,682       29,980       (1,298)      31,047        31,517         (470)
Other assets                                                                  35,458       38,875       (3,417)      33,936        35,420       (1,484)
Due to banks and customer deposits                                           (3,993)      (4,005)            12      (5,902)      (5,895)            (7)
Central bank funds purchased, securities sold under
repurchase agreements and securities lending transactions                  (112,867)    (112,819)          (48)    (140,424)    (140,436)            12
Short-term borrowings                                                        (4,692)      (5,313)           621      (8,120)      (8,409)           289
Long-term debt                                                              (96,008)    (100,619)         4,611    (111,293)    (111,595)           302
Other liabilities                                                            (5,205)      (5,239)            34      (3,648)      (3,646)            (2)
100




      Gains and losses on financial instruments

                                                                                                                                                          1Q08           1Q07

                                                                                                                                                             Net            Net
                                                                                                                                                          gains/         gains/
      in                                                                                                                                                (losses)       (losses)

      Financial instruments (CHF million)
      Central bank funds sold, securities purchased under
                                                                                                                                                                   1              1
      resale agreements and securities borrowing transactions                                                                                            2,892          3,911
                                                                                                                                                                   2              1
      Trading loans                                                                                                                                          17             49
           of which related to credit risk                                                                                                                    0             22
                                                                                                                                                                                  2
      Other investments                                                                                                                                   (607)              8
                                                                                                                                                                   1              1
      Loans                                                                                                                                                186            361
           of which related to credit risk                                                                                                                (767)             41
                                                                                                                                                                   2              1
      Other assets                                                                                                                                      (1,683)             81
           of which related to credit risk                                                                                                              (2,257)           (11)
                                                                                                                                                                   1              1
      Due to banks and customer deposits                                                                                                                   (15)           (20)
           of which related to credit risk                                                                                                                   11             (1)
      Central bank funds purchased, securities sold under
                                                                                                                                                                   1              1
      repurchase agreements and securities lending transactions                                                                                         (2,106)        (3,506)
                                                                                                                                                                   1              2
      Short-term borrowings                                                                                                                                  (6)          (86)
                                                                                                                                                                   1              1
      Long-term debt                                                                                                                                      (667)          (239)
           of which related to credit risk                                                                                                               1,470            (17)
                                                                                                                                                                   2              2
      Other liabilities                                                                                                                                 (1,109)             (1)
           of which related to credit risk                                                                                                              (1,130)             (1)

      1                                                  2
          Primarily recognized in net interest income.       Primarily recognized in trading revenues.




      Note 22      Subsidiary guarantee information


      On March 26, 2007, the Group and the Bank issued full,                                             may demand payment from either the Group or the Bank,
      unconditional and several guarantees of Credit Suisse (USA),                                       without first proceeding against Credit Suisse (USA), Inc. The
      Inc.’s outstanding US SEC-registered debt securities. In                                           guarantee from the Group is subordinated to senior liabilities.
      accordance with the guarantees, if Credit Suisse (USA), Inc.                                       Credit Suisse (USA), Inc. is an indirect, wholly owned sub-
      fails to make any timely payment under the agreements gov-                                         sidiary of the Group.
      erning such debt securities, the holders of the debt securities
                                                             Condensed consolidated financial statements – unaudited                            101




Condensed consolidating statements of income

                                                                                                              Credit      Other
                                                                                     Other                    Suisse     Credit
                                                                       Credit       Credit         Credit     Group      Suisse       Credit
                                                                      Suisse        Suisse        Suisse      parent     Group        Suisse
in 1Q08                                                            (USA), Inc. subsidiaries 1 (the Bank)    company subsidiaries 1    Group

Condensed consolidating statements of income (CHF million)
Interest and dividend income                                            5,152        7,381       12,533         103         123       12,759
Interest expense                                                      (4,510)      (6,097)     (10,607)        (112)          66     (10,653)
Net interest income                                                       642        1,284        1,926          (9)        189        2,106
Commissions and fees                                                      815        2,806        3,621            5        307        3,933
Trading revenues                                                          (25)     (2,070)       (2,095)         (1)        319       (1,777)
Other revenues                                                            173      (1,329)       (1,156)     (2,124)       2,113      (1,167)
Net revenues                                                            1,605          691        2,296     (2,129)        2,928       3,095
Provision for credit losses                                                 0          151          151            0           0         151
Compensation and benefits                                               1,050        2,079        3,129          29         106        3,264
General and administrative expenses                                       325        1,258        1,583         (19)          21       1,585
Commission expenses                                                        83          487          570            0          54         624
Total other operating expenses                                            408        1,745        2,153         (19)          75       2,209
Total operating expenses                                                1,458        3,824        5,282          10         181        5,473
Income/(loss) before taxes and minority interests                         147      (3,284)       (3,137)    (2,139)        2,747     (2,529)
Income tax expense/(benefit)                                               (1)        (585)        (586)           9        122         (455)
Minority interests                                                        120         (290)        (170)           0        244           74
Net income/(loss)                                                          28      (2,409)       (2,381)    (2,148)        2,381     (2,148)

in 1Q07

Condensed consolidating statements of income (CHF million)
Interest and dividend income                                            6,522        7,907       14,429         105         158       14,692
Interest expense                                                      (6,337)      (6,224)     (12,561)        (126)          84     (12,603)
Net interest income                                                       185        1,683        1,868         (21)        242        2,089
Commissions and fees                                                    1,555        3,069        4,624            6        347        4,977
Trading revenues                                                        1,102        2,089        3,191            1          24       3,216
Other revenues                                                          1,079          332        1,411       2,733      (2,806)       1,338
Net revenues                                                            3,921        7,173       11,094       2,719      (2,193)      11,620
Provision for credit losses                                                 0           51            51           0           2          53
Compensation and benefits                                               1,814        2,976        4,790          51         109        4,950
General and administrative expenses                                       333        1,224        1,557         (60)          35       1,532
Commission expenses                                                       108          442          550            1          58         609
Total other operating expenses                                            441        1,666        2,107         (59)          93       2,141
Total operating expenses                                                2,255        4,642        6,897          (8)        202        7,091
Income before taxes and minority interests                              1,666        2,480        4,146       2,727      (2,397)       4,476
Income tax expense/(benefit)                                              266          523          789          (2)          35         822
Minority interests                                                        881           74          955            0        (30)         925
Net income                                                                519        1,883        2,402       2,729      (2,402)       2,729

1
    Includes eliminations and consolidation adjustments.
102




      Condensed consolidating balance sheets

                                                                                                             Credit      Other
                                                                                    Other                    Suisse     Credit
                                                                      Credit       Credit         Credit     Group      Suisse       Credit
                                                                     Suisse        Suisse        Suisse      parent     Group        Suisse
      end of 1Q08                                                 (USA), Inc. subsidiaries 1 (the Bank)    company subsidiaries 1    Group

      Assets (CHF million)
      Cash and due from banks                                          2,297       23,946       26,243          59        1,471      27,773
      Interest-bearing deposits with banks                           41,283      (35,827)        5,456            0     (2,044)       3,412
      Central bank funds sold, securities purchased under
      resale agreements and securities borrowing transactions       171,717      103,910       275,627            0        880      276,507
      Securities received as collateral                              20,434           680       21,114            0       (435)      20,679
      Trading assets                                                130,243      314,903       445,146            0       1,537     446,683
      Investment securities                                                0       13,807       13,807          29        1,293      15,129
      Other investments                                              16,832         8,176       25,008      39,151     (38,931)      25,228
      Net loans                                                          880     209,698       210,578       9,459        9,131     229,168
      Premises and equipment                                             757        4,629        5,386            0        526        5,912
      Goodwill                                                           714        7,740        8,454            0       1,136       9,590
      Other intangible assets                                            169          343          512            0          20        532
      Other assets                                                   38,663      107,520       146,183         245         953      147,381
      Total assets                                                  423,989      759,525 1,183,514          48,943     (24,463) 1,207,994

      Liabilities and shareholders’ equity (CHF million)
      Due to banks                                                        98       91,621       91,719       5,847     (22,227)      75,339
      Customer deposits                                                    2     287,976       287,978            0     27,586      315,564
      Central bank funds purchased, securities sold under
      repurchase agreements and securities lending transactions     186,193        69,828      256,021            0       (128)     255,893
      Obligation to return securities received as collateral         20,434           680       21,114            0       (435)      20,679
      Trading liabilities                                            57,360      127,387       184,747            0       2,121     186,868
      Short-term borrowings                                          37,871      (28,432)        9,439            0       3,270      12,709
      Long-term debt                                                 39,401      100,665       140,066       5,206      (2,433)     142,839
      Other liabilities                                              52,219        92,820      145,039         251        1,015     146,305
      Minority interests                                             13,755         6,785       20,540            0     (6,381)      14,159
      Total liabilities                                             407,333      749,330 1,156,663          11,304        2,388 1,170,355

      Total shareholders’ equity                                     16,656        10,195       26,851      37,639     (26,851)      37,639

      Total liabilities and shareholders’ equity                    423,989      759,525 1,183,514          48,943     (24,463) 1,207,994

      1
          Includes eliminations and consolidation adjustments.
                                                            Condensed consolidated financial statements – unaudited                           103




Condensed consolidating balance sheets

                                                                                                             Credit      Other
                                                                                    Other                    Suisse     Credit
                                                                      Credit       Credit         Credit     Group      Suisse       Credit
                                                                     Suisse        Suisse        Suisse      parent     Group        Suisse
end of 4Q07                                                       (USA), Inc. subsidiaries 1 (the Bank)    company subsidiaries 1    Group

Assets (CHF million)
Cash and due from banks                                                3,118       33,186       36,304            7       2,148      38,459
Interest-bearing deposits with banks                                 49,060      (44,534)        4,526            0       (767)       3,759
Central bank funds sold, securities purchased under
resale agreements and securities borrowing transactions             182,625      113,716       296,341            0        368      296,709
Securities received as collateral                                    29,194          (466)      28,728            0       (414)      28,314
Trading assets                                                      161,718      368,407       530,125            0       1,958     532,083
Investment securities                                                      0       14,515       14,515          29        1,187      15,731
Other investments                                                    18,312         9,595       27,907      45,188     (44,975)      28,120
Net loans                                                                909     220,661       221,570       9,440        9,524     240,534
Premises and equipment                                                   839        4,751        5,590            0        559        6,149
Goodwill                                                                 806        8,940        9,746            0       1,136      10,882
Other intangible assets                                                  224          197          421            0          23        444
Other assets                                                         33,459      124,510       157,969         203        1,324     159,496
Total assets                                                        480,264      853,478 1,333,742          54,867     (27,929) 1,360,680

Liabilities and shareholders’ equity (CHF million)
Due to banks                                                              62     106,917       106,979       5,978     (22,093)      90,864
Customer deposits                                                          2     307,596       307,598            0     27,907      335,505
Central bank funds purchased, securities sold under
repurchase agreements and securities lending transactions           214,479        85,997      300,476            0        (95)     300,381
Obligation to return securities received as collateral               29,194          (466)      28,728            0       (414)      28,314
Trading liabilities                                                  59,204      141,371       200,575            0       1,234     201,809
Short-term borrowings                                                49,915      (35,517)       14,398            0       4,992      19,390
Long-term debt                                                       47,353      109,929       157,282       5,421      (2,546)     160,157
Other liabilities                                                    46,316      116,037       162,353         269        1,799     164,421
Minority interests                                                   15,267         8,752       24,019            0     (7,379)      16,640
Total liabilities                                                   461,792      840,616 1,302,408          11,668        3,405 1,317,481

Total shareholders’ equity                                           18,472        12,862       31,334      43,199     (31,334)      43,199

Total liabilities and shareholders’ equity                          480,264      853,478 1,333,742          54,867     (27,929) 1,360,680

1
    Includes eliminations and consolidation adjustments.
104




      Note 23   Litigation


      In accordance with SFAS No. 5, “Accounting for Contingen-           losses relating to such claims in excess of its provisions are
      cies”, the Group has litigation reserves for private litigation     either not material or not estimable.
      involving Enron, certain IPO allocation practices, research             It is inherently difficult to predict the outcome of many of
      analyst independence and other related litigation of CHF 0.9        these matters. In presenting the condensed consolidated
      billion (USD 0.9 billion) as of March 31, 2008, after deduc-        financial statements, management makes estimates regarding
      tions for settlements.                                              the outcome of these matters, records a reserve and takes a
           The Group is involved in a number of other judicial, regula-   charge to income when losses with respect to such matters
      tory and arbitration proceedings concerning matters arising in      are probable and can be reasonably estimated. Estimates, by
      connection with the conduct of its businesses. Some of these        their nature, are based on judgment and currently available
      actions have been brought on behalf of various classes of           information and involve a variety of factors, including, but not
      claimants and seek damages of material and/or indeterminate         limited to, the type and nature of the litigation, claim or pro-
      amounts. The Group believes, based on currently available           ceeding, the progress of the matter, the advice of legal coun-
      information and advice of counsel, that the results of such pro-    sel, the Group’s defenses and its experience in similar cases
      ceedings, in the aggregate, will not have a material adverse        or proceedings, as well as its assessment of matters, including
      effect on its financial condition but might be material to oper-    settlements, involving other defendants in similar or related
      ating results for any particular period, depending, in part, upon   cases or proceedings.
      the operating results for such period. In respect of each of the        Further charges or releases of litigation reserves may be
      matters described above, each of which consists of a number         necessary in the future as developments in such litigation,
      of claims, it is the Group’s belief that the reasonably possible    claims or proceedings warrant.
VI
Investor information   106 Investor information
106




      Investor information



      Share data

                                                                                                                                         in / end of

                                                                                                        1Q08        2007         2006        2005

      Share price (common shares, CHF)
      Average                                                                                           55.66       83.02        73.13       54.19
      Minimum                                                                                           45.16       61.90        62.70       46.85
      Maximum                                                                                           66.95       95.45        85.35       68.50
      End of period                                                                                     50.55       68.10        85.25       67.00

      Share price (American Depository Shares, USD)
      Average                                                                                           52.28       68.97        58.46       43.40
      Minimum                                                                                           46.22       55.93        50.07       38.75
      Maximum                                                                                           59.76       79.03        70.00       52.91
      End of period                                                                                     50.88       60.10        69.85       50.95

      Market capitalization
      Market capitalization (CHF million)                                                              56,251      76,024       86,576     81,847
      Market capitalization (USD million)                                                              56,618      67,093       74,290     62,241

      Dividend per share (CHF)
                                                                                                                            1
      Dividend per share paid                                                                               –        2.50         2.24        2.00
      Par value reduction                                                                                   –           –         0.46            –

      1
          Proposal of the Board of Directors to the Annual General Meeting on April 25, 2008.




      Share performance

      100

          90

          80

          70

          60

          50

          40

          30

                                        2005                                                    2006        2007                         2008


      p Credit Suisse Group        p Swiss Market Index (rebased)
                                                                                                                                   Investor information                107




Ticker symbols / stock exchange listings

                                                                                                                                                                   1
                                                                                                                      Common shares                        ADS

Ticker symbols
Bloomberg                                                                                                                    CSGN VX                     CS US
Reuters                                                                                                                      CSGN.VX                      CS.N
Telekurs                                                                                                                    CSGN,380                     CS,065

Stock exchange listings
Swiss security number                                                                                                        1213853                     570660
ISIN number                                                                                                           CH0012138530               US2254011081
CUSIP number                                                                                                                            –           225 401 108

1
    One American Depositary Share (ADS) represents one common share.



Bond ratings

                                                                                                                                            Standard       Fitch
                                                                                                                               Moody’s      & Poor’s     Ratings

Credit Suisse Group ratings
Short-term                                                                                                                              –        A-1        F1+
Long-term                                                                                                                          Aa2           A+         AA-
Outlook                                                                                                                         Stable      Negative      Stable

Credit Suisse (the Bank) ratings
Short-term                                                                                                                         P-1          A-1+        F1+
Long-term                                                                                                                          Aa1           AA-        AA-
Outlook                                                                                                                         Stable      Negative      Stable




Financial calendar and information sources

Financial calendar                                                                 US share register and transfer agent
Dividend payment                            Friday, May 2, 2008                                                           Deutsche Bank
Second quarter 2008 results                 Thursday, July 24, 2008                ADS depositary institution             Trust Company Americas
Third quarter 2008 results                  Thursday, October 23, 2008                                                    Broker Service Desk
Investor relations                                                                 Address                                Credit Suisse
Phone                                       +41 44 333 71 49                                                              c/o Mellon Investor Services
E-mail                                      investor.relations@credit-suisse.com                                          P.O. Box 3316
Internet                                    www.credit-suisse.com/investors                                               So. Hackensack, NJ 07606
Media relations                                                                                                           United States
Phone                                       +41 844 33 88 44                       US and Canada phone (toll free)        +1 800 301 35 17
E-mail                                      media.relations@credit-suisse.com      Phone from outside US and Canada       +1 201 680 66 26
Internet                                    www.credit-suisse.com/news             E-mail                                 shrrelations@mellon.com
Additional information                                                             Swiss share register and transfer agent
Results and financial information           www.credit-suisse.com/results          Address                                Credit Suisse Group
Printed copies                              Credit Suisse                                                                 Dept. GHBS
                                            Procurement Non-IT Switzerland                                                CH-8070 Zurich
                                            RSCP 1 Publikationenversand                                                   Switzerland
                                            CH-8070 Zurich                         Phone                                  +41 44 332 26 60
                                            Switzerland                            Fax                                    +41 44 332 98 96
108




      Foreign currency translation rates

                                                                                                                                     in / end of                 % change

                                                                                                               1Q08         4Q07         1Q07          QoQ              YoY

      Average rate
      1 USD / 1 CHF                                                                                             1.06         1.15         1.23             (8)          (14)
      1 EUR / 1 CHF                                                                                             1.60         1.66         1.62             (4)           (1)
      1 GBP / 1 CHF                                                                                             2.11         2.34         2.41          (10)            (12)
      100 JPY / 1 CHF                                                                                           1.01         1.01         1.03              0            (2)

      Closing rate
      1 USD / 1 CHF                                                                                             0.99         1.13         1.22          (12)            (19)
      1 EUR / 1 CHF                                                                                             1.57         1.66         1.63             (6)           (4)
      1 GBP / 1 CHF                                                                                             1.97         2.25         2.39          (13)            (18)
      100 JPY / 1 CHF                                                                                           0.99         1.00         1.03             (1)           (4)




      Cautionary statement regarding forward-looking information                        p further adverse rating actions by credit rating agencies in respect of
      This report contains statements that constitute forward-looking state-              structured credit products or other credit-related exposures or of mono-
      ments within the meaning of the Private Securities Litigation Reform                line insurers;
      Act. In addition, in the future we, and others on our behalf, may make            p the ability of counterparties to meet their obligations to us;
      statements that constitute forward-looking statements. Such forward-              p the effects of, and changes in, fiscal, monetary, trade and tax policies,
      looking statements may include, without limitation, statements relating             and currency fluctuations;
      to the following:                                                                 p political and social developments, including war, civil unrest or terrorist
      p our plans, objectives or goals;                                                   activity;
      p our future economic performance or prospects;                                   p the possibility of foreign exchange controls, expropriation, nationalization
      p the potential effect on our future performance of certain contingencies;          or confiscation of assets in countries in which we conduct our operations;
        and                                                                             p operational factors such as systems failure, human error, or the failure to
      p assumptions underlying any such statements.                                       implement procedures properly;
                                                                                        p actions taken by regulators with respect to our business and practices in
      Words such as “believes,” “anticipates,” “expects,” “intends” and “plans”           one or more of the countries in which we conduct our operations;
      and similar expressions are intended to identify forward-looking state-           p the effects of changes in laws, regulations or accounting policies or prac-
      ments but are not the exclusive means of identifying such statements.               tices;
      We do not intend to update these forward-looking statements except as             p competition in geographic and business areas in which we conduct our
      may be required by applicable securities laws.                                      operations;
        By their very nature, forward-looking statements involve inherent risks         p the ability to retain and recruit qualified personnel;
      and uncertainties, both general and specific, and risks exist that predictions,   p the ability to maintain our reputation and promote our brand;
      forecasts, projections and other outcomes described or implied in forward-        p the ability to increase market share and control expenses;
      looking statements will not be achieved. We caution you that a number of          p technological changes;
      important factors could cause results to differ materially from the plans,        p the timely development and acceptance of our new products and services
      objectives, expectations, estimates and intentions expressed in such for-           and the perceived overall value of these products and services by users;
      ward-looking statements. These factors include:                                   p acquisitions, including the ability to integrate acquired businesses suc-
      p the ability to maintain sufficient liquidity and access capital markets;          cessfully, and divestitures, including the ability to sell non-core assets;
      p market and interest rate fluctuations;                                          p the adverse resolution of litigation and other contingencies; and
      p the strength of the global economy in general and the strength of the           p our success at managing the risks involved in the foregoing.
        economies of the countries in which we conduct our operations, in partic-
        ular the risk of a US or global economic downturn in 2008;                      We caution you that the foregoing list of important factors is not exclu-
      p the direct and indirect impacts of continuing deterioration of subprime         sive. When evaluating forward-looking statements, you should carefully
        and other real estate markets;                                                  consider the foregoing factors and other uncertainties and events, as
                                                                                        well as the information set forth in our Form 20-F Item 3 – Key Infor-
                                                                                        mation – Risk Factors.
                                                   New Perspectives           New Perspectives           New Perspectives




                                                                                                         Corporate Citizenship
                                                   Annual Report              Business Review            Report

                                                   2007                       2007                       2007



                                                 For a detailed presentation of Credit Suisse Group’s financial statements
                                                 2007, its company structure, risk management, corporate governance and
                                                 an in-depth review of its operating and financial results, please refer to the
                                                 Annual Report 2007. For a summary of our performance during the
                                                 business year and a close look at innovation through examples from various
                                                 areas of the bank, refer to our Business Review 2007. For information
Design: www.arnolddesign.ch                      on how the Bank assumes its responsibilities when conducting its business
Production: Management Digital Data AG, Zurich   activities, including its commitments toward the environment and various
Printer: NZZ Fretz AG, Zurich                    stakeholders within society, refer to the Corporate Citizenship Report 2007.
CREDIT SUISSE GROUP
Paradeplatz 8
8070 Zurich
Switzerland
                          5520124 English




Phone +41 44 212 16 16
Fax    +41 44 333 25 87

www.credit-suisse.com
            As filed with the Securities and Exchange Commission on March 20, 2008



                         UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION
                                    Washington, D.C. 20549


                                         Form 20-F



    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                                                OR

⌧   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
    1934
    For the fiscal year ended December 31, 2007.

                                                OR

    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934

                                                OR

    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934
    For the transition period from to .



                               Commission file number: 001-15244

                                Credit Suisse Group
                       (Exact name of Registrant as specified in its charter)
                                   Canton of Zurich, Switzerland
                           (Jurisdiction of incorporation or organization)
                      Paradeplatz 8, P.O. Box 1, CH 8070 Zurich, Switzerland
                              (Address of principal executive offices)



                               Commission file number: 001-33434

                                      Credit Suisse
                       (Exact name of Registrant as specified in its charter)
                                  Canton of Zurich, Switzerland
                          (Jurisdiction of incorporation or organization)
                           Paradeplatz 8, CH 8070 Zurich, Switzerland
                              (Address of principal executive offices)
Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class of securities of Credit Suisse Group               Name of each exchange on which registered

American Depositary Shares each representing one Share                 New York Stock Exchange

Shares par value CHF 0.04*                                             New York Stock Exchange*

Title of each class of securities of Credit Suisse

14.25% Reverse Convertible Securities due April 29, 2008

Linked to the Common Stock of Ford Motor Company                       American Stock Exchange

Fixed to Floating Rate Tier 1 Capital Notes                            New York Stock Exchange

Floating Rate Tier 1 Capital Notes                                     New York Stock Exchange

Buffered Accelerated Return Equity Securities (BARES)

due November 6, 2012 Linked to the Performance of the

CS/RT Emerging Infrastructure Index Powered by HOLT                    American Stock Exchange

Accelerated Return Equity Securities (ARES) due

November 6, 2012 Linked to the Performance of the

CS/RT Emerging Infrastructure Index Powered by HOLT                    American Stock Exchange



Title of each class of securities of Credit Suisse (USA), Inc.

61/8% Notes due 2011                                                   New York Stock Exchange

Five-Year Contingent Protection Securities due September 30,

2008 Linked to the S&P 500® Index                                      American Stock Exchange

Five-Year Contingent Protection Securities due November 26,

2008 Linked to the S&P 500® Index                                      American Stock Exchange



Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of 31
December 2007: 1,162,432,140 shares of Credit Suisse Group
Indicate by check mark if the Registrants are well-known seasoned issuers, as defined in Rule 405 of the Securities
                                                       Act.

                                        Yes ⌧                                     No

If this report is an annual or transition report, indicate by check mark if the Registrants are not required to file reports
                        pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

                                        Yes                                       No ⌧

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d)
               of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the Registrants (1) have filed all reports required to be filed by Section 13 or 15(d)
    of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the
Registrants were required to file such reports) and (2) have been subject to such filing requirements for the past 90
                                                        days.

                                        Yes ⌧                                     No

 Indicate by check mark whether the Registrants are large accelerated filers, accelerated filers, or non-accelerated
   filers. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check
                                                            One):

                   Large accelerated filers ⌧                      Accelerated filers         Non-accelerated filers

            Indicate by check mark which financial statement item the Registrants have elected to follow.

                                    Item 17                                  Item 18 ⌧

 If this is an annual report, indicate by check mark whether the Registrants are shell companies (as defined in Rule
                                               12b-2 of the Exchange Act)

                                        Yes                                       No ⌧

           *Not for trading, but only in connection with the registration of the American Depositary Shares.
Table of contents
            Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
            Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
            Cautionary Statement Regarding Forward-Looking Information . . . . . . . . . . . . . .1

PART I

ITEM 1.     IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS . . . . . . . . .2

ITEM 2.     OFFER STATISTICS AND EXPECTED TIMETABLE                                    . . . . . . . . . . . . . . . . . . . . . .2

ITEM 3.     KEY INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

ITEM 4.     INFORMATION ON THE COMPANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

ITEM 4.A.   UNRESOLVED STAFF COMMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

ITEM 5.     OPERATING AND FINANCIAL REVIEW AND PROSPECTS . . . . . . . . . . . . . . . . .4

ITEM 6.     DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES . . . . . . . . . . . . . . . . .5

ITEM 7.     MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS . . . . . . . . . .6

ITEM 8.     FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

ITEM 9.     THE OFFER AND LISTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

ITEM 10.    ADDITIONAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

ITEM 11.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK . . . . . .8

ITEM 12.    DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES . . . . . . . . . .8
PART II

ITEM 13.     DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES . . . . . . . . . . . . . .9

ITEM 14.     MATERIAL MODIFICATIONS TO THE RIGHTS OF
             SECURITY HOLDERS AND USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . . . . .9

ITEM 15.     CONTROLS AND PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

ITEM 16.A.   AUDIT COMMITTEE FINANCIAL EXPERT                             . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

ITEM 16.B.   CODE OF ETHICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

ITEM 16.C.   PRINCIPAL ACCOUNTANT FEES AND SERVICES . . . . . . . . . . . . . . . . . . . . .10

ITEM 16.D.   EXEMPTION FROM THE LISTING STANDARDS FOR AUDIT COMMITTEE                                                   . . . . .10

ITEM 16.E.   PURCHASES OF EQUITY SECURITIES BY THE ISSUER
             AND AFFILIATED PURCHASERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Part III

ITEM 17.     FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

ITEM 18.     FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

ITEM 19.     EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
             Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
                                                                                                                                  1




Definitions
For the purposes of this Form 20-F and the attached Annual Report 2007, unless the context otherwise requires, the terms
“Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group and its consolidated subsidiaries and the term “the
Bank” means Credit Suisse, the Swiss bank subsidiary of the Group, and its consolidated subsidiaries.
The business of the Bank is substantially similar to the Group and except where noted or the context otherwise requires, infor-
mation relating to the Group is also relevant to the Bank.




Sources
Throughout this Form 20-F and the attached Annual Report 2007, we describe the position and ranking of our various busi-
nesses in certain industry and geographic markets. The sources for such descriptions come from a variety of conventional pub-
lications generally accepted as relevant business indicators by members of the financial services industry. These sources
include: Standard & Poor’s, Thomson Financial, Dealogic, the Loan Pricing Corporation, Institutional Investor, Lipper, Moody’s
Investors Service and Fitch Ratings.




Cautionary Statement Regarding
Forward-Looking Information
For Credit Suisse and the Bank, please see X – Investor Information–Cautionary statement regarding forward looking-informa-
tion on page 390 of the attached Annual Report 2007.

This Form 20-F supersedes in its entirety the Report on Form 6-K of Credit Suisse Group filed on February 19, 2008 (acces-
sion number: 0001104659-08-011285).
2




    Part I




    Item 1.
    Identity of Directors, Senior
    Management and Advisers.
    Not required because this Form 20-F is filed as an annual report.




    Item 2.
    Offer Statistics and Expected Timetable.
    Not required because this Form 20-F is filed as an annual report.




    Item 3.
    Key Information.
    A – Selected financial data.
    For Credit Suisse and the Bank, please see IX – Additional information – Statistical information on pages 352 to 353 of the
    attached Annual Report 2007.

    B – Capitalization and indebtedness.
    Not required because this Form 20-F is filed as an annual report.

    C – Reasons for the offer and use of proceeds.
    Not required because this Form 20-F is filed as an annual report.

    D – Risk factors.
    For Credit Suisse and the Bank, please see IX – Additional information – Risk factors on pages 375 to 380 of the attached
    Annual Report 2007.
                                                                                                                                   3




Item 4.
Information on the Company.
A – History and development of the company.
For Credit Suisse and the Bank, please see I – Information on the company on pages 10 to 14 and IV – Corporate governance
– Company on page 123 of the attached Annual Report 2007. In addition, for Credit Suisse, please see Note 3, Business
developments in V – Consolidated financial statements – Credit Suisse Group on pages 184 to 185 of the attached Annual
Report 2007. For the Bank, please see Note 3, Business developments in VII – Consolidated financial statements – Credit
Suisse (Bank) on page 291 of the attached Annual Report 2007.

B – Business overview.
For Credit Suisse and the Bank, please see I – Information on the company on pages 15 to 31 of the attached Annual Report
2007. In addition, for Credit Suisse, please see Note 5, Segment information in V – Consolidated financial statements – Credit
Suisse Group on pages 185 to 188 of the attached Annual Report 2007. For the Bank, please see Note 4, Segment informa-
tion in VII – Consolidated financial statements – Credit Suisse (Bank) on pages 291 to 293 of the attached Annual Report 2007.

C – Organizational structure.
For Credit Suisse and the Bank, please see I – Information on the company – Organizational structure on pages 27 to 28 and
II – Operating and financial review – Credit Suisse – Differences between Group and Bank on page 41 of the attached Annual
Report 2007. For a list of Credit Suisse’s significant subsidiaries, please see Note 38, Significant subsidiaries and associates
in V – Consolidated financial statements – Credit Suisse Group on pages 245 to 247 of the attached Annual Report 2007. For
a list of the Bank’s significant subsidiaries, please see Note 35, Significant subsidiaries and associates in VII – Consolidated
financial statements – Credit Suisse (Bank) on pages 331 to 333 of the attached Annual Report 2007.

D – Property, plants and equipment.
For Credit Suisse and the Bank, please see IX – Additional information – Other information – Property and equipment on pages
385 to 386 of the attached Annual Report 2007.

Information Required by Industry Guide 3.
For Credit Suisse, please see IX – Additional information–Statistical information on pages 354 to 367 of the attached Annual
Report 2007. For the Bank, please see IX – Additional information–Statistical information on page 368 of the attached Annual
Report 2007.




Item 4.A.
Unresolved Staff Comments.
None.
4




    Item 5.
    Operating and Financial Review and
    Prospects.
    A – Operating results.
    For Credit Suisse, please see II – Operating and financial review on pages 34 to 80 of the attached Annual Report 2007. For
    the Bank, please see II – Operating and financial review on pages 34 to 80 (excluding –Credit Suisse, –Core Results and –Cor-
    porate Center but including –Credit Suisse – Revaluing of certain asset-backed securities positions on pages 38 to 39, and
    –Allocations and funding and –Differences between Group and Bank on pages 40 to 42) of the attached Annual Report 2007.

    B – Liquidity and capital resources.
    For Credit Suisse and the Bank, please see III – Balance Sheet, Off-balance sheet, Treasury and Risk – Treasury management
    on pages 92 to 103 of the attached Annual Report 2007. In addition, for Credit Suisse, please see Note 24, Long-term debt
    in V – Consolidated financial statements – Credit Suisse Group on pages 202 to 203 of the attached Annual Report 2007. For
    the Bank, please see Note 22, Long-term debt in VII – Consolidated financial statements – Credit Suisse (Bank) on page 304
    of the attached Annual Report 2007.

    C – Research and development, patents and licenses, etc.
    Not applicable.

    D – Trend information.
    For Credit Suisse and the Bank, please see Item 5.A of this Form 20-F.

    E – Off-balance sheet arrangements.
    For Credit Suisse and the Bank, please see III – Balance sheet, Off-balance sheet, Treasury and Risk – Balance sheet, off-bal-
    ance sheet and other contractual obligations on pages 82 to 91 of the attached Annual Report 2007. In addition, for Credit
    Suisse, please see Note 32, Transfers and servicing of financial assets in V – Consolidated financial statements – Credit Suisse
    Group on pages 227 to 232 of the attached Annual Report 2007. For the Bank, please see Note 30, Transfers and servicing
    of financial assets in VII – Consolidated financial statements – Credit Suisse (Bank) on pages 323 to 325 of the attached
    Annual Report 2007.

    F – Tabular disclosure of contractual obligations.
    For Credit Suisse and the Bank, please see III – Balance sheet, Off-balance sheet, Treasury and Risk – Balance sheet, off-bal-
    ance sheet and other contractual obligations – Contractual obligations and other commercial commitments on pages 90 to 91
    of the attached Annual Report 2007.
                                                                                                                               5




Item 6.
Directors, Senior Management and
Employees.
A – Directors and senior management.
For Credit Suisse and the Bank, please see IV – Corporate Governance – Board of Directors – Members of the Board of Direc-
tors and the Committees on pages 132 to 138, and –Executive Board – Members of the Executive Board on pages 139 to 143,
of the attached Annual Report 2007.

B – Compensation.
For Credit Suisse and the Bank, please see IV – Corporate governance–Compensation on pages 144 to 158 of the attached
Annual Report 2007. In addition, for Credit Suisse, please see Note 10, Compensation and benefits in V – Consolidated finan-
cial statements – Credit Suisse Group on page 190, Note 29, Pension and other post-retirement benefits in V – Consolidated
financial statements – Credit Suisse Group on pages 214 to 221, and Note 3, Compensation and loans to members of the
Board of Directors and the Executive Board in VI – Parent company financial statements – Credit Suisse Group on pages 266
to 273, of the attached Annual Report 2007. For the Bank, please see Note 9, Compensation and benefits in VII – Consoli-
dated financial statements – Credit Suisse (Bank) on page 295 and Note 27, Pension and other post-retirement benefits in VII
– Consolidated financial statements – Credit Suisse (Bank) on pages 314 to 320 of the attached Annual Report 2007.

C – Board practices.
For Credit Suisse and the Bank, please see IV – Corporate Governance – Board of Directors and –Executive Board on pages
128 to 143 of the attached Annual Report 2007.

D – Employees.
For Credit Suisse and the Bank, please see IV – Corporate governance – Overview – Company – Employees on pages 123 to
124 of the attached Annual Report 2007.

E – Share ownership.
For Credit Suisse and the Bank, please see IV – Corporate governance – Compensation – Share-based compensation plans and
–Compensation and loans to members of the Board of Directors and the Executive Board on pages 146 to 158 of the attached
Annual Report 2007. In addition, for Credit Suisse, please see Note 27, Employee share-based compensation and other ben-
efits in V – Consolidated financial statements – Credit Suisse Group on pages 208 to 213, and Note 3, Compensation and loans
to members of the Board of Directors and the Executive Board in VI – Parent company financial statements – Credit Suisse
Group on pages 266 to 273, of the attached Annual Report 2007. For the Bank, please see Note 25, Employee share-based
compensation and other benefits in VII – Consolidated financial statements – Credit Suisse (Bank) on pages 309 to 312 of the
attached Annual Report 2007.
6




    Item 7.
    Major Shareholders and Related Party
    Transactions.
    A – Major shareholders.
    For Credit Suisse, please see IV – Corporate Governance – Shareholders on pages 125 to 128 of the attached Annual Report
    2007. Credit Suisse’s major shareholders do not have different voting rights. The Bank is a wholly-owned subsidiary of Credit
    Suisse.

    B – Related party transactions.
    For Credit Suisse and the Bank, please see IV – Corporate Governance – Compensation – Compensation and loans to members
    of the Board of Directors and the Executive Board on pages 151 to 158 of the attached Annual Report 2007. In addition, for
    Credit Suisse, please see Note 28, Related parties in V – Consolidated financial statements – Credit Suisse Group on pages
    213 to 214 of the attached Annual Report 2007. For the Bank, please see Note 26, Related parties in VII – Consolidated
    financial statements–Credit Suisse (Bank) on pages 312 to 314 of the attached Annual Report 2007.

    C – Interests of experts and counsel.
    Not applicable because this Form 20-F is filed as an annual report.




    Item 8.
    Financial Information.
    A – Consolidated statements and other financial information.
    Please see Item 18 of this Form 20-F.
    For a description of Credit Suisse’s and the Bank’s legal or arbitration proceedings, please see IX – Additional information –
    Legal proceedings on pages 370 to 374 of the attached Annual Report 2007. In addition, for Credit Suisse, please see Note
    37, Litigation in V – Consolidated financial statements – Credit Suisse Group on page 244 of the attached Annual Report 2007.
    For the Bank, please see Note 34, Litigation in VII – Consolidated financial statements – Credit Suisse (Bank) on page 330 of
    the attached Annual Report 2007.
        For a description of Credit Suisse’s policy on dividend distributions, please see III – Balance sheet, Off-balance sheet, Trea-
    sury and Risk – Treasury Management – Dividends and dividend policy on pages 97 to 98 of the attached Annual Report 2007.

    B – Significant changes.
    None.
                                                                                                                                    7




Item 9.
The Offer and Listing.
A – Offer and listing details, C – Markets.
For information regarding the price history of Credit Suisse Group shares and the stock exchanges and other regulated markets
on which they are listed or traded, please see IX – Additional information – Listing details on page 384 to 385 of the attached
Annual Report 2007. Shares of the Bank are not listed.

B – Plan of distribution, D – Selling shareholders, E – Dilution, F – Expenses of the issue.
Not required because this Form 20-F is filed as an annual report.




Item 10.
Additional Information.
A – Share capital.
Not required because this Form 20-F is filed as an annual report.

B – Memorandum and Articles of Association.
For Credit Suisse and the Bank, please see IV – Corporate Governance–Overview, –Shareholders and –Board of Directors on
pages 122 to 138 and –Additional information on pages 159 to 160 of the attached Annual Report 2007.

C – Material contracts.
For Credit Suisse, please see IX – Additional information – Other information – Material contract on page 381 of the attached
Annual Report 2007. The Bank does not have any contract that would constitute a material contract for the two years immedi-
ately preceding this Form 20-F.

D – Exchange controls.
For Credit Suisse and the Bank, please see IX – Additional information – Other information – Exchange controls on page 381
of the attached Annual Report 2007.

E – Taxation.
For Credit Suisse, please see IX – Additional information – Other information – Taxation on pages 381 to 384 of the attached
Annual Report 2007. The Bank does not have any public shareholders.

F – Dividends and paying agents.
Not required because this Form 20-F is filed as an annual report.

G – Statement by experts.
Not required because this Form 20-F is filed as an annual report.

H – Documents on display.
Credit Suisse and the Bank file periodic reports and other information with the SEC. You may read and copy any document that
Credit Suisse and the Bank file with the SEC on the SEC’s website, www.sec.gov, or at the SEC’s public reference room at 100
F Street, N.E., Room 1580, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 (in the US) or at +1 202 942
8088 (outside the US) for further information on the operation of its public reference room. You may also inspect Credit Suisse’s
8




    and the Bank’s SEC reports and other information at the New York Stock Exchange, Inc., 11 Wall Street, New York, NY
    10005.
        The information Credit Suisse and the Bank file with the SEC may also be found on the Credit Suisse website at www.credit-
    suisse.com. In addition, our website also contains corporate governance policies and other documents of Credit Suisse and the
    Bank. Information contained on our website is not incorporated by reference into this Form 20-F.

    I – Subsidiary information.
    Not applicable.




    Item 11. Quantitative and Qualitative
    Disclosures about Market Risk.
    For Credit Suisse and the Bank, please see III – Balance sheet, Off-balance sheet, Treasury and Risk–Risk management on
    pages 104 to 120 of the attached Annual Report 2007.




    Item 12. Description of Securities other
    than Equity Securities.
    Not required because this Form 20-F is filed as an annual report.
                                                                                                                                9




PART II




Item 13.
Defaults, Dividend Arrearages and
Delinquencies.
None.




Item 14.
Material Modifications to the Rights of
Security Holders and Use of Proceeds.
For Credit Suisse, please see III – Balance sheet, Off-balance sheet, Treasury and Risk – Treasury management – Capital man-
agement – Dividends and dividend policy on pages 97 to 98, and the Statement of changes in shareholders’ equity in V – Con-
solidated financial statements – Credit Suisse Group on page 168, of the attached Annual Report 2007 with respect to the
reduction in par value of Credit Suisse Group shares. There have not been any modifications to the rights of the Bank’s secu-
rities.




Item 15.
Controls and Procedures.
For Credit Suisse and the related report from the Group’s independent auditors, please see Controls and Procedures in V –
Consolidated financial statements – Credit Suisse Group on pages 258 to 259 of the attached Annual Report 2007. For the
Bank and the related report from the Bank’s independent auditors, please see Controls and Procedures in VII – Consolidated
financial statements – Credit Suisse (Bank) on pages 334 to 335 of the attached Annual Report 2007.




Item 16.A.
Audit Committee Financial Expert.
For Credit Suisse and the Bank, please see IV – Corporate governance – Board of Directors – Board Committees – Audit Com-
mittee on pages 131 to 132 of the attached Annual Report 2007.
10




     Item 16.B.
     Code of Ethics.
     For Credit Suisse and the Bank, please see IV – Corporate governance – Overview – Corporate governance framework on
     pages 122 to 123 of the attached Annual Report 2007. We have posted a copy of our Code of Conduct on our website at
     www.credit-suisse.com.




     Item 16.C.
     Principal Accountant Fees and Services.
     For Credit Suisse and the Bank, please see IV – Corporate governance – Additional Information – Internal and external auditors
     on pages 159 to 160 of the attached Annual Report 2007.




     Item 16.D.
     Exemptions from the Listing Standards
     for Audit Committee.
     None.




     Item 16.E.
     Purchases of Equity Securities by the
     Issuer and Affiliated Purchasers.
     For Credit Suisse, please see III – Balance sheet, Off-balance sheet, Treasury and Risk – Treasury management – Capital man-
     agement – Share repurchase activities on pages 96 to 97 of the attached Annual Report 2007. The Bank does not have any
     class of equity securities registered pursuant to Section 12 of the Exchange Act.
                                                                                                                                    11




PART III




Item 17.
Financial Statements.
Not applicable.




Item 18.
Financial Statements.
Credit Suisse’s consolidated financial statements and parent company financial statements, together with the notes thereto and
the Reports of the Independent Registered Public Accounting Firm thereon, are set forth on pages 163 to 277 of the attached
Annual Report 2007 and incorporated by reference herein. The Bank’s consolidated financial statements and parent company
financial statements, together with the notes thereto (and any notes or portions thereof in the consolidated financial statements
of Credit Suisse Group referred to therein) and the Reports of the Independent Registered Public Accounting Firm thereon, are
set forth on pages 281 to 350 of the attached Annual Report 2007 and incorporated by reference herein.
12




     Item 19.
     Exhibits.
     1.1    Articles of association (Statuten) of Credit Suisse Group as of January 30, 2008.
     1.2    Articles of association (Statuten) of Credit Suisse (Bank) as of April 19, 2006 (incorporated by reference to Exhibit
            1.1 of Credit Suisse Group’s report on Form 6-K filed on March 28, 2007).
     1.3    Regulations governing the conduct of business of Credit Suisse Group (OGR) as of January 1, 2007 (incorporated by
            reference to Exhibit 1.2 of Credit Suisse Group’s annual report on Form 20-F filed on March 26, 2007).
     4.1    Share Purchase Agreement, dated June 13, 2006, by and between Credit Suisse Group and AXA S.A. regarding Pur-
            chase and Sale of all Shares of Winterthur (incorporated by reference to Exhibit 4.1 of Credit Suisse Group’s annual
            report on Form 20-F filed on March 26, 2007).
     8.1    Significant subsidiaries of Credit Suisse are set forth in Note 38, Significant subsidiaries and associates in V – Con-
            solidated financial statements – Credit Suisse Group on pages 245 to 247, and significant subsidiaries of the Bank
            are set forth in Note 35, Significant subsidiaries and associates in VII – Consolidated financial statements – Credit
            Suisse (Bank) on pages 331 to 333 in the attached Annual Report 2007 and incorporated by reference herein.
     10.1   Consent of KPMG Klynveld Peat Marwick Goerdeler SA, Zurich with respect to Credit Suisse Group financial state-
            ments.
     10.2   Consent of KPMG Klynveld Peat Marwick Goerdeler SA, Zurich with respect to the Credit Suisse (Bank) financial
            statements.
     12.1   Rule 13a-14(a) certification of the Chief Executive Officer of Credit Suisse Group and Credit Suisse (Bank), pursuant
            to Section 302 of the Sarbanes-Oxley Act of 2002.
     12.2   Rule 13a-14(a) certification of the Chief Financial Officer of Credit Suisse Group and Credit Suisse (Bank), pursuant
            to Section 302 of the Sarbanes-Oxley Act of 2002.
     13.1   Certifications pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for
            Credit Suisse Group and Credit Suisse (Bank).
     15.1   Computations of ratios of earnings to fixed charges of Credit Suisse Group and of the Bank are set forth under IX –
            Additional Information – Statistical information – Ratio of earnings to fixed charges – Group and –Ratio of earnings to
            fixed charges – Bank on page 369 of the attached Annual Report 2007 and incorporated by reference herein.
                                                                                                                                     13




SIGNATURES
Each of the registrants hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused
and authorized the undersigned to sign this annual report on its behalf.




                                           CREDIT SUISSE GROUP
                                           (Registrant)
                                           Date: March 20, 2008



/s/ Brady Dougan                            /s/ Renato Fassbind
Name: Brady W. Dougan                       Name: Renato Fassbind
Title: Chief Executive Officer              Title: Chief Financial Officer




                                           CREDIT SUISSE
                                           (Registrant)
                                           Date: March 20, 2008



/s/ Brady Dougan                            /s/ Renato Fassbind
Name: Brady W. Dougan                       Name: Renato Fassbind
Title: Chief Executive Officer              Title: Chief Financial Officer
14
New Perspectives




Annual Report

2007
Credit Suisse provides integrated
and customized client solutions
by leveraging the global capabilities
of Private Banking, Investment Banking
and Asset Management. We continue
to strengthen our client focus to deliver
a superior value proposition.




                                                                           The needs of clients differ considerably with respect to
                                                                           client segments and individual circumstances. At Credit
                                                                           Suisse, we aim to understand our clients’ needs and aspi-
                                                                           rations on a deeper level in order to offer them targeted and
                                                                           effective solutions. We increasingly deliver our full capabili-
                                                                           ties in a client-oriented rather than product-driven approach.
                                                                           During 2007, we introduced our new client coverage model
                                                                           for top clients in Switzerland, and we continue to roll it out
                                                                           to other regions. Our strengthened client-focused approach
                                                                           in 2007 included our enhanced offerings targeted at entre-
                                                                           preneurs in Europe and Asia, the reorganization of our se-
                                                                           curities businesses to offer clients a single point of contact
  New Perspectives
                                                                           across asset classes and the launching of a qualitative seg-
                                                                           mentation model for private banking clients. With our strong
  Annual Report                                                            commitment to the client-focused integrated bank, we aspire
  2007
                                                                           to become the world’s premier and most admired bank,
                                                                           fostering a culture of excellence, innovation and leadership.
Christoph Hasenböhler, relationship manager, Berne                         We are continuing to build a truly client-centric organization
The objective of a curler is to direct the polished granite stone toward   with a superior value proposition, leveraging our various
the middle of the so-called “house.” Credit Suisse’s Client Centricity
initiative, as its name implies, also aims to put its clients at the       distribution channels. By building a globally integrated pro-
center to further improve our comprehensive understanding of their         vider of financial services, we also aim to grow revenues and
needs. Christoph Hasenböhler led parts of a Client Centricity pilot
project in the Swiss Mittelland region. To learn more about this pilot
                                                                           further increase productivity by managing our resources
project, please refer to our Business Review 2007.                         more efficiently.
Financial highlights
                                                                                 in / end of             % change

                                                               2007      2006        2005      07 / 06   06 / 05

Net income (CHF million)
Income from continuing operations                             7,760      8,281       4,526         (6)        83
Net income                                                    7,760     11,327       5,850        (31)        94

Earnings per share (CHF)
Basic earnings per share from continuing operations            7.43       7.53        3.98         (1)        89
Basic earnings per share                                       7.43      10.30        5.17        (28)        99

Diluted earnings per share from continuing operations          6.96       7.19        3.90         (3)        84
Diluted earnings per share                                     6.96       9.83        5.02        (29)        96

Return on equity (%)
Return on equity                                               18.0       27.5        15.4          –          –

Core Results (CHF million)
Net revenues                                                 34,953     34,940     28,415           0         23
Provision for credit losses                                     240      (111)       (144)          –        (23)
Total operating expenses                                     25,565     24,311     23,200           5          5
Income from continuing operations before taxes                9,148     10,740       5,359        (15)       100

Core Results statement of income metrics (%)
Cost/income ratio                                              73.1       69.6        81.6          –          –
Pre-tax income margin                                          26.2       30.7        18.9          –          –
Effective tax rate                                             13.7       22.2        17.3          –          –
Net income margin from continuing operations                   22.2       23.7        15.9          –          –
Net income margin                                              22.2       32.4        20.6          –          –

Assets under management and net new assets (CHF billion)
Assets under management                                      1,554.7   1,485.1    1,319.4          4.7      12.6
Net new assets                                                 50.4       95.4        57.4          –          –

Balance sheet statistics (CHF million)
Total assets                                               1,360,680 1,255,956 1,339,052            8         (6)
Net loans                                                   240,534    208,127   205,671           16          1
Total shareholders’ equity                                   43,199     43,586     42,118          (1)         3

Book value per share (CHF)
Total book value per share                                    42.33      41.02       37.42          3         10
Tangible book value per share                                 31.23      30.20       23.19          3         30

Shares outstanding (million)
Common shares issued                                         1,162.4   1,214.9    1,247.8          (4)        (3)
Treasury shares                                              (141.8)   (152.4)     (122.4)         (7)        25
Shares outstanding                                           1,020.6   1,062.5    1,125.4          (4)        (6)

Market capitalization
Market capitalization (CHF million)                          76,024     99,949     81,847         (24)        22
Market capitalization (USD million)                          67,093     81,894     62,241         (18)        32

BIS statistics
Risk-weighted assets (CHF million)                          312,068    253,676   232,891           23          9
Tier 1 ratio (%)                                               11.1       13.9        11.3          –          –
Total capital ratio (%)                                        14.5       18.4        13.7          –          –

Number of employees (full-time equivalents)
Number of employees                                          48,100     44,900     44,600           7          1
We delivered income from continuing
operations of CHF 7.8 billion for 2007.
We continued the implementation
of our client-focused integrated bank
strategy, further improving the
diversification of our revenues and
maintaining a strong capital base.
Going into 2008, we will increasingly
leverage our full global capabilities
to provide our clients with targeted,
leading-edge solutions.
Annual Report




2007


For purposes of this report, unless the context otherwise requires, the terms
“Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group
and its consolidated subsidiaries. The business of Credit Suisse, the Swiss
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 simi-
lar. We use the term “the Bank” when we are only referring to Credit Suisse,
the Swiss bank subsidiary of the Group, and its consolidated subsidiaries.

In various tables, use of “-” indicates not meaningful or not applicable.
2




    Editorial
                I
                Information on the company
                                                       II
                                                       Operating and financial review




                10    Credit Suisse at a glance        34     Operating environment

                12    Global reach of Credit Suisse    37     Credit Suisse

                14    The year at Credit Suisse        43     Core Results

                15    Vision, mission and principles   47     Key performance indicators

                15    Corporate citizenship            48     Private Banking

                16    Strategy                         57     Investment Banking

                19    Our businesses                   63     Asset Management

                27    Organizational structure         69     Corporate Center

                28    Regulation and supervision       70     Results summary

                                                       72     Assets under Management

                                                       75     Critical accounting estimates
                                                                                                        3




III IV V
Balance sheet, Off-balance sheet,
Treasury and Risk
                                    Corporate governance           Consolidated financial statements
                                                                   – Credit Suisse Group



82    Balance sheet, off-balance    122   Overview                 163   Report of the Group Auditors
      sheet and other contractual
      obligations                   125   Shareholders             165   Consolidated statements of
                                                                         income
92    Treasury management           128   Board of Directors
                                                                   166   Consolidated balance sheets
104   Risk management               139   Executive Board
                                                                   168   Statements of changes
                                    144   Compensation                   in shareholders’ equity

                                    159   Additional information   169   Comprehensive income

                                                                   170   Consolidated statements
                                                                         of cash flows

                                                                   172   Notes to the consolidated
                                                                         financial statements

                                                                   258   Controls and procedures

                                                                   260   Report of the Group Auditors
4




    VI VII VIII
    Parent company financial statements
    – Credit Suisse Group
                                             Consolidated financial statements
                                             – Credit Suisse (Bank)
                                                                                  Parent company financial statements
                                                                                   – Credit Suisse (Bank)



    263   Report of the Statutory Auditors   281   Report of the Group Auditors   339   Report of the Statutory Auditors

    264   Statements of income               283   Consolidated statements        340   Financial review
                                                   of income
    265   Balance sheets                                                          341   Statements of income
                                             284   Consolidated balance sheets
    266   Notes to the financial                                                  342   Balance sheets
          statements                         286   Statements of changes
                                                   in shareholder’s equity        343   Off-balance sheet business
    276   Proposed appropriation
          of retained earnings               287   Comprehensive income           344   Notes to the financial
                                                                                        statements
    277   Report of the Capital              288   Consolidated statements
          Increase Auditors                        of cash flows                  350   Proposed appropriation of
                                                                                        retained earnings
                                             290   Notes to the consolidated
                                                   financial statements

                                             334   Controls and procedures

                                             336   Report of the Group Auditors
                                                                                                                               5




IX X
Additional information                Investor information




352    Statistical information        388      Investor information

370    Legal proceedings

375    Risk factors

381    Other information

386    Foreign currency translation
       rates




                                                              New Perspectives      New Perspectives




                                                                                    Corporate Citizenship
                                                              Business Review       Report

                                                              2007                  2007



                                                             In our 2007 Business Review you can find a summary of our
                                                             performance during 2007 and more information about our
                                                             business. Our Corporate Citizenship Report 2007 provides
                                                             information about how Credit Suisse discharges its responsi-
                                                             bilities with regard to the environment and society as a whole.
                                                             You can order these via our website at www.credit-suisse.com.
6




    Dear shareholders,
    clients and colleagues

    Credit Suisse reported income from continuing operations of        2007 financial performance
    CHF 7,760 million in 2007, a good result in light of the impact    In 2007, we achieved CHF 7,760 million of net income and
    of the severe mortgage and credit market dislocation during        income from continuing operations. Net revenues rose to CHF
    the second half of the year. Our performance in difficult oper-    39,735 million. Diluted earnings per share from continuing
    ating conditions for the entire industry underscores the combi-    operations were CHF 6.96 for 2007 compared to CHF 7.19 in
    nation of strengths we benefit from at Credit Suisse and our       2006. Return on equity was 18.0% compared to 27.5% in
    belief that we are well positioned to continue to create supe-     2006, which included income from discontinued operations.
    rior value for shareholders.                                            Private Banking reported record pre-tax income of CHF
         While not immune to market forces, we successfully navi-      5,486 million, a 19% increase from 2006. Net revenues rose
    gated through an extremely challenging environment and,            16% to CHF 13,522 million, our best-ever performance,
    driven by the record performance of Private Banking, delivered     reflecting record results in both Wealth Management and our
    sustained profitability in 2007. Most importantly, we continued    Swiss Corporate & Retail Banking businesses. In Wealth Man-
    to meet the needs of our clients and, because of our strong        agement, we benefited from strong growth in net new assets
    capital position, serve as a safe haven in a period of financial   as we continued to expand our onshore capabilities in key
    uncertainty and volatility.                                        developed and fast-growing emerging markets. The credit
         Our earnings mix is diversified by business and geography,    environment remained favorable throughout the year in
    and our integrated model enables us to tap new sources of          Switzerland, driving growth in our businesses.
    revenues and improve operating efficiency. Our risk positions           In Investment Banking, pre-tax income for the full year was
    are manageable and were reduced substantially during 2007.         CHF 3,649 million, 39% lower than in 2006, reflecting prima-
         We have learned, however, that we must increase our           rily the mortgage and credit market dislocation. Net write-
    efforts to strengthen our controls. As announced on February       downs in leveraged finance and structured products were
    19, 2008, our internal controls identified the need to revalue     CHF 3,187 million, which included CHF 1,177 million from
    certain asset-backed positions in our CDO trading business         valuation reductions on the revaluing of certain asset-backed
    within Investment Banking. Our internal review is now com-         securities positions in our CDO trading business. Net revenues
    plete, and we found evidence of some intentional misconduct        declined by 7% year-over-year, to CHF 18,958 million. In
    by a small number of traders. As a result of this review, we       2007, we achieved higher revenues in equity trading, equity
    recorded valuation reductions of CHF 2.86 billion, whereof         underwriting and advisory and other fees than in 2006, as well
    CHF 1.18 billion relate to net revenues as of the end of 2007,     as in a number of our fixed income businesses, reflecting the
    resulting in a CHF 789 million reduction in net income from        increasing diversity of our revenue mix within Investment
    the amounts we previously reported for fourth quarter and full-    Banking. Those results were offset by lower fixed income trad-
    year 2007. CHF 1.68 billion of these valuation reductions          ing and debt underwriting revenues, reflecting the adverse
    were recorded in the first quarter of 2008, also reflecting sig-   conditions for our structured products and leveraged finance
    nificant adverse market developments. Obviously, these events      businesses in the second half of 2007.
    and the actions of these employees are unacceptable. We                 In Asset Management, we reported pre-tax income of
    have responded promptly to reduce the possibility of this type     CHF 354 million, and net revenues of CHF 2,577 million,
    of situation occurring again.                                      30% and 10% lower, respectively, than in 2006. These 2007
         Our tier 1 capital ratio was 11.1% at the end of 2007,        results include CHF 920 million of valuation reductions related
    among the highest in our peer group. Based on our perform-         to securities purchased from our money market funds to
    ance and financial soundness, the Board of Directors will pro-     address liquidity concerns, mostly offset by increased rev-
    pose an increased cash dividend for 2007 of CHF 2.50 per           enues from alternative investments and balanced assets as
    share.                                                             well as higher private equity and other investment-related
Brady W. Dougan, Chief Executive Officer
(left), Walter B. Kielholz, Chairman of the
Board of Directors. In the background
is a portrait of Alfred Escher who founded
Credit Suisse in 1856.
8




    gains. Before these valuation reductions, pre-tax income in         competitive costs. By the end of 2007, around 10% of our
    Asset Management was CHF 1,274 million in 2007, and net             employees were located in these hubs. By the end of 2008,
    revenues were CHF 3,497 million, both well above the prior          we expect this to rise to at least 15%, which will help us
    year, reflecting solid growth and strong performance, particu-      achieve our goal of being in the top quartile of our industry in
    larly in our alternative investments business.                      terms of cost/income ratio by 2010. Credit Suisse is well cap-
                                                                        italized and we will continue to manage our capital conserva-
    Positioned for profitable growth                                    tively. While we have the resources to be opportunistic in
    As an integrated bank, we believe we are well placed to cap-        expanding our business platform and investing in organic
    ture growth opportunities in each of our businesses, as well as     growth, we will continue to be extremely prudent in how and
    from cross-organizational, collaborative activities, even in the    where we invest our capital. We will continue to focus on bolt-
    more challenging environment we anticipate.                         on acquisitions that make sense strategically and financially.
         We believe we will continue to benefit from strong growth      We are ahead of the original schedule for the share buyback
    momentum in Private Banking. Our expertise and financial            program, but our ability to finish the program during 2008 will
    strength have reinforced our position as a trusted partner to       depend on market conditions.
    wealthy individuals and families around the world, especially in
    difficult market conditions. To better serve client needs and       Despite the continuing turmoil in the mortgage and credit mar-
    propel growth, we intend to increase the proportion of assets       kets, we believe our integrated model sets us apart and gives
    we actively manage for clients. We are also focused on              us attractive opportunities to build long-term value for our
    expanding our client base among the important high-net-worth        shareholders. We are committed to building on the strength
    and ultra-high-net-worth client segments globally. We are           and resilience of our business and believe we can deliver prof-
    actively increasing the number of relationship managers who         itable growth across market cycles.
    are dedicated to these clients and, by tapping our full                 Our success depends on the hard work, innovation and
    resources as an integrated bank to meet their sophisticated         commitment of our employees and their talents and enthusi-
    financial requirements, we believe we can increase our pene-        asm for serving the needs of our clients during 2007, and
    tration of this sector considerably in 2008.                        have made us more confident than ever in what we can create
         In Investment Banking, we are investing in businesses with     at Credit Suisse.
    high levels of activity and growth potential. Among the busi-
    nesses we are targeting for growth are algorithmic trading,         Yours sincerely,
    commodities, derivatives, life finance and prime services. In
    addition, we will continue to build on our strong presence in
    the emerging markets.
         In Asset Management, we are focused on capturing the
    growth opportunities in our strongest investment capabilities,      Walter B. Kielholz       Brady W. Dougan
    including our alternative investments platform. We are expand-      March 2008
    ing the scale and geographic reach of our private equity prod-
    uct offerings, and intend to grow our hedge fund business fur-
    ther.

    Leveraging Credit Suisse’s resources as an integrated
    bank
    Delivering the expertise of the integrated bank to our clients is
    becoming an increasingly important part of our culture at
    Credit Suisse. We generated approximately CHF 5.9 billion,
    or 17%, of our core net revenues from cross-divisional activi-
    ties in 2007, and we are seeing good progress in collaboration
    among all three divisions.
        Our integrated model also enables us to increase our oper-
    ating efficiency. Our Centers of Excellence enable us to lever-
    age our worldwide resources and the global talent pool in
    order to supply our businesses with high-quality services at
I
Information on   10 Credit Suisse at a glance

the company      12 Global reach of
                    Credit Suisse

                 14 The year at Credit Suisse

                 15 Vision, mission and principles

                 15 Corporate citizenship

                 16 Strategy

                 19 Our businesses

                 27 Organizational structure

                 28 Regulation and supervision
10




     Credit Suisse at a glance
     As one of the world’s leading financial
     services providers, we are committed
     to delivering our combined financial
     expertise to corporate, institutional and
     government clients and high-net-worth
     individuals worldwide, as well as to retail
     clients in Switzerland. We serve our
     diverse clients through our three divisions:
     Private Banking1, Investment Banking2
     and Asset Management3, which cooper-
     ate closely to provide holistic financial
     solutions based on innovative products
     and specially tailored advice. Founded
     in 1856, we have a truly global reach today,
     with operations in over 50 countries and
     a team of over 48,000 employees from
     approximately 100 different nations.
                                    Information on the company           11




1 Private Banking
    In Private Banking, we offer comprehensive advice and a broad
    range of wealth management solutions, including pension
    planning, life insurance products, tax planning and wealth and
    inheritance advice, which are tailored to the needs of high-
    net-worth individuals worldwide. In Switzerland, we supply
    banking products and services to high-net-worth, corporate and
    retail clients.


2
    Investment Banking
    In Investment Banking, we offer investment banking and
    securities products and services to corporate, institutional and
    government clients around the world. Our products and serv-
    ices include debt and equity underwriting, sales and trading,
    mergers and acquisitions advice, divestitures, corporate sales,
    restructuring and investment research.


3
    Asset Management
    In Asset Management, we offer integrated investment solutions
    and services to institutions, governments and private clients
    globally. We provide access to the full range of investment class-
    es, ranging from money market, fixed income, equities and bal-
    anced products, to alternative investments such as real estate,
    hedge funds, private equity and volatility management.
12




     Global reach
     of Credit Suisse
     We are present around the globe to serve our clients in
     all geographic regions. With the ongoing globalization,
     increased capital flows and wealth creation in new markets,
     we keep expanding our footprint. In 2007, we strength-
     ened our presence, for example in Australia, Austria,
     China, India, Israel, Kazakhstan, Panama, Turkey, Ukraine
     and the US. In Brazil, we acquired Hedging-Griffo,
     a leading asset management and private banking firm.
     In many markets, we further developed our numerous
     partnerships and joint ventures. We increased our talent
     and drove efficiency by opening a fourth Center of
     Excellence in Wroclaw, Poland, and through the expansion
                                                                   1 Credit Suisse locations
     of the existing centers in Raleigh-Durham (North Carolina,    1 Regional headquarters
     US), Singapore and Pune (India).                              1 Centers of Excellence
                                                                            Information on the company           13




Regional headquarters

Credit Suisse           Credit Suisse             Credit Suisse              Credit Suisse
Paradeplatz 8           Eleven Madison Avenue     One Cabot Square           Three Exchange Square, 22nd Floor
8070 Zurich             New York, NY 10010-3629   London E14 4QJ             8 Connaught Place, Central
Switzerland             United States             United Kingdom             Hong Kong
Tel. +41 44 212 16 16   Tel. +1 212 325 20 00     Tel. +44 20 78 88 88 88    Tel. +852 21 01 60 00
Fax +41 44 332 25 87    Fax +1 212 325 66 65      Fax +44 20 78 88 16 00     Fax +852 21 01 79 90
14




     The year at Credit Suisse
     p (January) We launched Clariden Leu, our independent            p (July) With the launch of the “stage of life” concept as part
       Swiss private bank, resulting from the merger of our inde-       of the Client Centricity program for retail clients during the
       pendent private banking subsidiaries. In addition, we            first half of the year, about 2,000 front office employees,
       launched BANK-now, our specialized supplier of consumer          including 700 relationship managers, were trained to apply
       credit and car leasing services in the Swiss market.             our enhanced advisory process.
     p (March) We further expanded our global footprint with the      p (August) Our Advanced Execution Services (AES ®) plat-
       launch of our new stock brokerage business in India, an          form began trading in seven additional markets – Mexico,
       important growth market for Credit Suisse.                       South Africa, the Czech Republic, Greece, Hungary,
     p (March) We strengthened our funding and liquidity model          Malaysia and Canada’s Venture Exchange. AES ® is now
       by centralizing debt issuance and the funding of our sub-        available in 32 markets on more than 50 trading platforms.
       sidiaries, with securities being issued primarily by the       p (September) With the onset of more volatile financial mar-
       Bank, our principal operating subsidiary.                        kets, Asset Management and Private Banking launched a
     p (April) We completed the roll-out of our new client cover-       total return strategy initiative designed to produce positive
       age model for our top clients in Switzerland. More than          returns for investors across market cycles.
       1,500 Credit Suisse employees are part of the delivery         p (October) Our fourth Center of Excellence opened in Wro-
       teams.                                                           claw, Poland. Together with our centers in Singapore,
     p (May) Brady W. Dougan assumed the role of Chief Exec-            Raleigh-Durham (North Carolina, US) and Pune (India),
       utive Officer (CEO) of Credit Suisse following the retire-       the new facility enables us to leverage talent and
       ment of Oswald J. Grübel after a successful 38-year              resources globally.
       career at Credit Suisse.                                       p (November) As part of our international growth strategy in
     p (May) We led the first ever global initial public offering       Wealth Management, we launched onshore activities in
       (IPO) of a microfinance institution, Mexico’s Banco Com-         Austria, with offices in Vienna and Salzburg. We also
       partamos, S.A., which provides small working capital loans       opened a new office in Tel Aviv, Israel, where we were
       and other financial services to subsistence entrepreneurs.       granted an investment marketing license.
     p (May) We announced the acquisition of Baran Securities,        p (November) We completed the acquisition of a majority
       a Turkish broker dealer. Credit Suisse now holds a full bro-     interest in Hedging-Griffo, a leading asset management
       ker dealer license on the Istanbul Stock Exchange, offer-        and private banking company in Brazil, adding significant
       ing clients expanded products and services in Turkey.            scale to our integrated business in this important market.
     p (June) We announced the opening of new offices in Kiev,        p (November) A new pension solution was launched at the
       Ukraine, and Almaty, Kazakhstan, reflecting our commit-          end of 2007 called “CSA Swiss Index Protected.” This
       ment to dynamic growth markets.                                  new structured product for personal pensions is specifi-
     p (June) We announced a 9.9% investment in EcoSecurities           cally designed to meet the needs of conservative
       Group PLC. EcoSecurities is one of the world’s leading           investors. It combines capital protection and a minimum
       companies in the business of originating, implementing           income with the potential returns offered by participation in
       and commercializing carbon credits.                              the Swiss Market Index.
     p (July) To capture the growing business opportunities in        p (December) We launched a 120/20 global natural
       Islamic banking, we extended our service offering to pro-        resources fund for a top-tier US insurance company,
       vide structuring and advice on Sharia-compliant lending          offered as part of their variable life and annuity programs,
       and investing activities.                                        reflecting our client solutions-oriented approach. Our
     p (July) We signed a strategic partnership agreement with          Future Generation Mandate and Future Generation Certifi-
       the National Pension Service of the Republic of Korea,           cate balanced products, launched a year ago in Switzer-
       leveraging our global experience to provide a broad range        land, have raised in excess of CHF 2.0 billion.
       of services, including asset management, risk manage-
       ment, governance, training and technology.
                                                                                                   Information on the company           15




Vision, mission and principles
It is our vision at Credit Suisse to become the world’s premier      will suffice. Building on our tradition to innovate, we strive
and most admired bank, renowned for our expertise in private         to develop new financial solutions and compelling value
banking, investment banking and asset management, and val-           propositions to address client needs.
ued for our advice, innovation and execution.                      p Teamwork must be at the heart of all that Credit Suisse
     Our mission is to set new standards in partnering with our      does. We are committed to working together as a team
clients and providing them with innovative, integrated financial     across businesses and regions to deliver added value to
solutions. As a global bank serving clients in every region of       clients. As an integrated organization, we are well posi-
the world, cultural diversity is essential to our success. We        tioned to capitalize on our combined strengths and expert-
strive to create an open, respectful workplace that encourages       ise to provide holistic product offerings and seamless serv-
people to work together and with our clients to deliver superior     ice that set us apart from our peers. Dedication,
products, services and results and support the success and           determination and dialogue are the keys to successful
prosperity of all our stakeholders.                                  teamwork at Credit Suisse.
     Three principles guide Credit Suisse in all decisions,        p Reputation is everything. At Credit Suisse we know that a
actions and objectives:                                              reputation takes years to build. We are committed to main-
p A relentless focus on client needs. At Credit Suisse, we           taining, enhancing and monitoring our reputation by gen-
     know we can only set new standards in partnering with           erating value for clients and shareholders, acting with pro-
     clients if we place them at the center of everything we do      fessionalism, integrity and respect and serving as a
     and have a complete understanding of their needs and            reliable partner to all our stakeholders.
     aspirations. We believe that nothing short of excellence



Corporate citizenship
As one of the world’s largest financial services providers with    own practices. We were one of the first companies to sign the
leading positions in many markets, we are aware of our             Equator Principles and the United Nations Global Compact
responsibilities in society. In our business practices, we place   and, in 1997, we were the first bank in the world to receive
great value on integrity, professionalism and ethical action.      ISO 14001 certification for our environmental management
The foundation for this is our Code of Conduct, which under-       system. In 2006, we were the first large company in Switzer-
pins our corporate culture and system of values, and which         land to become carbon neutral.
reflects our commitment to environmental sustainability and            Our responsibility to society, of course, goes beyond envi-
social responsibility as key factors in our long-term business     ronmental protection. We provide all our employees with an
success.                                                           open, respectful workplace, suitable opportunities for training
    Credit Suisse’s efforts in connection with environmental       and development and support for achieving work/life balance.
sustainability are aimed in three directions. First, we support    At the end of 2007, as part of our broader focus on social
projects, initiatives and organizations that put the tenets of     responsibility, we launched four corporate citizenship initiatives
sustainability, as we see them, into practice. Second, we offer    in the areas of education, microfinance, climate and humani-
our clients innovative environmental finance products and serv-    tarian partnership, guided by the motto “Innovate – Educate –
ices. For example, in 2007, Credit Suisse launched a specially     Participate.”
designed financing facility to provide carbon-backed financing         Further information on our activities related to sustainabil-
for forestry projects and established several additional strate-   ity and social responsibility can be found in our Corporate Cit-
gic partnerships in areas including clean technologies and car-    izenship Report 2007 and at www.credit-suisse.com/citizenship.
bon trading. Third, we have incorporated sustainability into our
16




     Strategy
     Industry trends and competition                                       that we are well positioned to realize above-average growth
                                                                           and offer superior returns to shareholders, as we effectively
     International banking continues to benefit from favorable fun-        respond to market trends while diversifying our revenues
     damental trends, including globalization, deregulation, privati-      through a more balanced business mix.
     zations, demographic changes, technological progress and a
     more harmonized regulatory environment for financial services         Innovation through collaboration
     providers. Despite the turmoil in mortgage and credit markets         Since the inception of our integrated bank strategy two years
     that began in the second half of 2007, we expect long-term            ago, we measurably increased the level of internal collabora-
     economic growth, leading to a significant increase in global          tion and partnership between our divisions. We estimate that
     financial assets and rapidly expanding cross-border capital           17%, or CHF 5.9 billion, of total core net revenues in 2007
     flows. These trends will predominantly be fueled by emerging          were generated by cross-divisional activities. We benefited not
     markets and increased pan-European activities. Today’s                only from cross-selling opportunities, but, more importantly,
     dynamic financial services markets offer attractive prospects         from targeted, leading-edge solutions for our top clients. The
     for growth and profitability, but clients increasingly require        largest source of revenues generated from cross-divisional
     global reach, local expertise and competitive products and            activities between Private Banking and Investment Banking
     services. As a result of the increased sophistication of individ-     was from specific investment banking and alternative invest-
     ual clients, we are experiencing the convergence of institu-          ment products provided to ultra-high-net-worth individuals
     tional and individual client needs and the continued pressure         served by Private Banking. We also extended our integrated
     for transparency and product performance. Banking industry            service offering to entrepreneurs. Today, we systematically
     trends also include the compression of fees and spreads from          leverage our advisory role in IPOs and, in 2007, one in three
     product commoditization in some areas, but also market frag-          such transactions resulted in a new wealth management rela-
     mentation and specialization in other areas.                          tionship. We will continue to offer incentives to our employees
         In order to compete more effectively, we launched our             to further strengthen this cross-divisional collaboration, and
     client-focused integrated bank strategy in 2006, comprising           targets have been set across Credit Suisse and form part of
     Private Banking, Investment Banking and Asset Management,             our internal and external performance metrics.
     building on our tradition of first-class financial advice and inno-
     vation. In doing so, we focus on complex client needs and             Strengthening our client focus
     value-adding businesses, globally leveraging our expertise with       We increasingly deliver our full capabilities in a client-oriented
     close collaboration between our divisions. With our strategy,         rather than product-driven approach, and we continue to opti-
     we have delivered strong growth and profitability over the last       mize the way we do business. For example, during 2007, we
     two years, and we will continue its implementation to further         completed the roll-out of our new client coverage model for
     develop our full potential.                                           our top clients in Switzerland, involving more than 1,500
                                                                           employees. We made significant and measurable progress in
                                                                           serving our clients, and we are optimistic about capturing addi-
     Integrated value creation                                             tional potential for Credit Suisse as we continue to roll out our
                                                                           client coverage model to other regions. Other examples of our
     To be the world’s premier and most admired bank                       strengthened client focus include our efforts to target entre-
     With our strong commitment to the client-focused integrated           preneurs in Europe and Asia, the reorganization of our securi-
     bank, we aspire to become the world’s premier and most                ties businesses to offer clients a single point of contact across
     admired bank, fostering a culture of excellence, innovation and       asset classes and the launch of the life-cycle model for private
     leadership. We are continuing to build a truly client-centric         clients in 2007. We have numerous integrated client initiatives
     organization with a superior value proposition, leveraging our        under way and we expect to achieve further success in 2008.
     various distribution channels. By building a globally integrated
     provider of financial services, we also aim to grow revenues
     and further increase productivity by managing our resources
     more efficiently within our control environment. We believe
                                                                                                    Information on the company            17




Targets and achievements                                           Strategic priorities

Profitable growth and improved earnings quality                    Continued implementation
To assess our achievements and internally benchmark our ini-       With our client-focused integrated bank strategy, we continue
tiatives, we have defined a set of indicators for performance,     to focus on profitable growth and a more diversified business
growth, efficiency and capital strength to be achieved across      mix, while delivering further cost synergies. After Brady W.
market cycles. For more information, refer to II – Operating       Dougan took over as CEO in May 2007, we conducted a
and financial review – Key performance indicators.                 broad strategy review, which confirmed our overall strategic
     Since the launch of our client-focused integrated bank        direction. We are committed to five strategic priorities:
strategy as of the beginning of 2006, we have made good            p Clients: We continue to strengthen our client coverage
progress in achieving our targets, benefiting from the favor-          model and focus on major clients with multi-product
able operating environment in 2006 and the first half of 2007.         needs. For ultra-high-net-worth individuals, large and mid-
The strategy was tested in the more challenging operating              sized companies, entrepreneurs, institutional clients and
conditions in the second half of 2007. With our client focus           hedge funds, we will enhance our offerings in areas such
and balanced business mix, risk management and strong cap-             as managed investment products, derivatives, alternative
ital position, we performed relatively well. Since 2006, we not        investments, commodities, life finance and prime services.
only achieved profitable growth, but we also improved our          p Collaboration: We continue to expand the integrated bank
earnings quality by improving our operating leverage, diversify-       approach by driving collaboration revenues while further
ing our revenues and more efficiently deploying capital.               building our client-centric organization. Key collaboration
                                                                       initiatives for 2008 include increased client and asset
Broadened platforms for growth                                         referrals between divisions, innovative product develop-
We have a leading presence in Europe and North America, as             ment, private equity and hedge fund distribution and pen-
well as in major emerging markets such as Brazil, China, Mex-          sion and insurance solutions.
ico, the Middle East and Russia. We have systematically devel-     p Capital and risk: We continue to deploy capital in a disci-
oped these emerging markets over the last few years and will           plined manner and aim to further improve our risk profile.
continue to expand our footprint to realize the opportunities          We will continue to diversify revenues over time. We strive
from the ongoing globalization, increased capital flows and            to maintain a strong capital base and will carefully balance
wealth creation in new markets. In 2007, we strengthened our           growth with returning capital to shareholders. While we
presence in mature markets (Australia, Austria, Israel and the         focus on organic growth, we will continue to review oppor-
US) and emerging markets (China, India, Kazakhstan,                    tunities for bolt-on acquisitions, particularly to further drive
Panama, Turkey and the Ukraine). In Brazil, we acquired a              our product diversification or strengthen our market posi-
majority interest in Hedging-Griffo, a leading asset manage-           tion in local markets.
ment and private banking firm. In many markets, we further         p Efficiency: We continue to foster our cost management
developed our presence through partnerships and joint ven-             culture and efficiency initiatives. We will leverage our
tures.                                                                 ongoing efforts to further standardize and optimize
    As part of our strategy, we also invested in developing high       processes, including the consolidation of information tech-
growth and high margin product offerings. Our ambition is not          nology platforms and the integration of sourcing, procure-
only to fill competitive gaps, for example in commodities and          ment and payment activities. We target significant
equity derivatives, but also to develop new business areas             improvements in our cost/income ratio over the next few
such as alternative energy finance and trading. Over the last          years, while profitably growing the business and managing
few years, we expanded businesses such as prime services,              risk.
algorithmic trading, life finance and alternative investments,     p Human capital: We continue to work to attract, develop
and we believe that we will benefit from these platforms going         and retain top talent and explore ways to become more
forward.                                                               employee-centric.
18




     Focused on execution                                               Cost management
     To implement these priorities, we increasingly benefit from a      During 2007, we strengthened the governance of our various
     set of capabilities that we strengthened over the last few years   cost management activities with a small central team to coor-
     and which we manage on a Group-wide basis:                         dinate cost initiatives and divisional teams to drive further com-
                                                                        pensation and non-compensation cost reductions. We are in
     Brand management                                                   the process of implementing Group-wide cost management
     As part of our integrated bank strategy, we pursue a one brand     standards and policies and we will apply internal efficiency,
     strategy. The Credit Suisse brand stands for first-class finan-    productivity and cost targets to identify and deliver cost syner-
     cial advice and innovation. With an award-winning global cam-      gies.
     paign launched in 2006, we convey our tradition to innovate
     and continue to increase brand awareness, leveraging high-         Operational Excellence
     profile sponsorship engagements such as the New York Phil-         We also made further progress in striving for operational
     harmonic, Salzburg Festival, Lucerne Festival, Bolshoi Theatre     excellence. We have numerous initiatives underway and, dur-
     Moscow and Formula 1.                                              ing 2007, we further leveraged this program. For example, we
                                                                        shortened and improved the client approval process for private
     Capital and risk management                                        equity funds and improved the market access for high-net-
     In a move to focus expertise and resources within the inte-        worth individuals, improving client satisfaction, revenues and
     grated global organization, we strengthened our funding and        efficiency. Our Operational Excellence program has been in
     liquidity model at the beginning of 2007 by centralizing debt      place for more than three years, creating a mindset of contin-
     issuance and the funding of our subsidiaries. We experienced       ued improvement and client focus and an established tool to
     the benefits of our conservative liquidity and funding policy in   implement our strategy and key initiatives.
     the second half of 2007, where we maintained a comfortable
     liquidity profile and capital position despite the liquidity       Divisional and regional strategies
     squeeze in funding markets. As a globally integrated bank, we      Consistent with our overall strategy and priorities, we have
     have access to markets worldwide, with retail and private          established divisional and regional strategies to capture long-
     client deposits representing a stable source of funds.             term growth. On a divisional level, we continue to build on our
         We use our economic capital framework as a consistent          existing strengths to expand and further diversify our innova-
     and comprehensive tool to manage risk and capital as well as       tive product offering in value-added businesses with high
     to steer the planning process and to measure performance.          growth prospects. We pursue a dynamic and disciplined busi-
     Economic capital is a robust framework for managing our risk       ness portfolio and capital allocation process to further
     profile and assessing aggregate risk appetite in relation to our   strengthen our leadership positions. Our focus is on develop-
     financial resources. We have a focus on risk management and        ing a balanced mix of strong-performing businesses over mar-
     we will continue to work to refine our standards.                  ket cycles, further reducing our dependency on highly corre-
                                                                        lated activities. We will continue to leverage the technical
     Centers of Excellence                                              competencies and distribution capabilities from all three divi-
     In order to bundle the processes for the integrated bank and to    sions and drive growth.
     better serve client needs, we set up global service centers. As         In the regions, we pursue organic growth and cooperation
     of the end of 2007, we employed 5,000 employees, or 10%            initiatives to gain market share and to further develop our inte-
     of our workforce, in our Centers of Excellence in Singapore,       grated value proposition. We see opportunities not only in
     Raleigh-Durham (North Carolina, US), Pune (India) and Wro-         emerging markets but also in mature markets. We will focus
     claw (Poland). The locations were selected because of access       on major clients with multi-product needs, including ultra-high-
     to qualified talent and good infrastructure. In addition, they     net-worth individuals, entrepreneurs, large and mid-sized com-
     strengthen the global presence of Credit Suisse and confirm        panies and institutional clients. The integrated bank strategy
     our commitment to these regions. Going forward, we will work       provides a powerful platform to leverage our product and mar-
     hard to capture the full potential of our Centers of Excellence.   ket expertise globally. Our plans for the regions also include
                                                                        further investments in systems and technology and refine-
                                                                        ments to risk management and capital allocation processes.
                                                                                                   Information on the company            19




Our businesses
Private Banking                                                    their personal wealth, but also to develop their business over
                                                                   market cycles. In more mature markets, we expect lower
Business profile                                                   growth rates than in emerging markets, but the asset base is
In Private Banking, Credit Suisse provides comprehensive           larger, with two thirds of global wealth located in the US,
advice and a broad range of wealth management solutions,           Japan and Western Europe. In these markets, generational
including pension planning, life insurance products, tax plan-     wealth transfer is of increasing relevance for private banks.
ning and wealth and inheritance advice, which are tailored to      The further harmonization of regulations, as well as enhanced
the needs of high-net-worth and ultra-high-net-worth individu-     risk and transparency requirements, will continue to put pres-
als worldwide. In Switzerland, we supply banking products and      sure on offshore private banking. We therefore expect growth
services to high-net-worth, corporate and retail clients. We run   rates to be higher in onshore markets. With regard to the
one of the largest private banking organizations globally, with    client value proposition, these trends have the following impli-
CHF 995.4 billion of assets under management as of the end         cations for leading service providers:
of 2007. With 23,200 employees and Credit Suisse’s strong          p Client focus: Banks shift their client focus increasingly
capital base, we serve 2.5 million clients, of which approxi-          beyond free investible assets to address total client
mately 670,000 are high-net-worth and ultra-high-net-worth             wealth, including liabilities as well as illiquid assets, such
individuals.                                                           as real estate or shares in client companies.
    In Wealth Management, we serve our international clients       p Client offering: Wealthy and informed clients expect pri-
through a network of dedicated relationship managers, spe-             vate banking to combine the full range of product and mar-
cialists and a range of online services. As of the end of 2007,        ket expertise into leading-edge and tailor-made solutions
we were present in more than 170 locations around the world            and services.
(including 72 locations in Switzerland) with over 3,100 rela-      p Client targeting: In an increasingly competitive environ-
tionship managers. Our independent Swiss private bank, Clar-           ment, banks have to move beyond asset-based client seg-
iden Leu, serves wealthy private clients in Switzerland and 14         mentation to develop specific need-based value proposi-
other countries with over 350 relationship managers.                   tions for strategically attractive target groups.
    In Corporate & Retail Banking, we serve businesses and         p Client proximity: With the industry becoming increasingly
retail banking clients through 216 branches in Switzerland as          global, banks need to be close to their clients and estab-
well as through contact centers and “Direct Net,” our online           lish both onshore and offshore capabilities in all major
banking platform, allowing our clients to conduct business             regions.
from any location in the world at any time. Relationship man-
agers for small and mid-sized corporate clients are based in       There is a continued high level of competitive pressure, which
more than 40 of our branches, while large domestic corporate       is set to increase further as wealth management clients
clients are served through two regional offices in Zurich and      increasingly seek expert advice, an integrated approach to the
Lausanne. Our regional bank, Neue Aargauer Bank, serves            management of their total client wealth and innovative prod-
clients in the Canton of Aargau. The consumer finance com-         ucts. It is therefore essential to invest in our infrastructure and
pany, BANK-now, is a specialized supplier of private credit        develop our talent pool. We expect further consolidation in the
offerings and car leasing in the Swiss market through various      wealth management industry, as suppliers seek to meet
distribution channels, including 21 branches.                      increasingly complex client requirements at competitive costs.
                                                                   In such a competitive environment, we believe our reputation is
Trends and competition                                             of paramount importance.
Wealth Management
For the wealth management industry, we expect continued            Corporate & Retail Banking
long-term growth in assets under management, with major            The Swiss corporate and retail banking industry is strongly tied
contributions from the economic growth in emerging markets.        to the overall economic environment in Switzerland. Swiss
In the newly industrialized countries, we also expect a further    retail banking clients have comparatively high incomes and
concentration of wealth and asset accumulation with entrepre-      savings rates, resulting in a large demand for personal invest-
neurs, who increasingly seek solutions not only to manage          ment management solutions. Furthermore, the Swiss private
20




     mortgage business has developed positively in recent years              derivative solutions from Investment Banking to our corpo-
     and this trend is expected to continue. Home ownership in               rate clients.
     Switzerland is still low at approximately 37%, and offers fur-      p   Client value proposition: In 2007, we started our client
     ther potential for mortgage business growth, although this is           centricity initiative with the goal to further improve the
     likely to be subject to declining margins.                              comprehensive view on our clients. The main element is an
          In the Swiss corporate and retail banking industry, compe-         improved segmentation according to behavior type, source
     tition has increased significantly in recent years, especially in       of wealth, stage of life cycle and more granular analysis of
     the area of private mortgages and basic banking products. To            current and potential client profitability. Our European mid-
     meet this competitive pressure, we continue to invest in qual-          dle market initiative to address the specific needs of entre-
     ity advisory capabilities, product innovation and customized            preneurs is one example. We foster managed investment
     client solutions through an open architecture.                          products that provide a number of advantages for our
                                                                             clients. Managed investment products are an efficient way
     Strategy and initiatives                                                to diversify the risks in a client’s portfolio while generating
     In Private Banking, we aim to establish Credit Suisse as the            attractive returns, and they offer access to asset classes
     premier private bank worldwide through our focus on six                 such as private equity or specialist hedge funds that oth-
     strategic priorities:                                                   erwise would not be available to private investors. Further-
     p International growth: We continued our international                  more, we made good progress in 2007 with the global roll-
         expansion in 2007 by opening offices to offer local serv-           out of the Structured Advisory Process by adding seven
         ices in Tel Aviv (Israel), Almaty (Kazakhstan), Panama City         locations. The roll-out is expected to be completed during
         (Panama), Kiev (Ukraine), Greenwich and Philadelphia                2008.
         (US), as well as launching or increasing operations in          p   Integrated bank: Our client-focused integrated bank
         Salzburg and Vienna (Austria), Sydney and Melbourne                 approach provides significant opportunities for clients with
         (Australia) and Shanghai (China). During 2007, we also              complex tailor-made product needs, particularly ultra-high-
         strengthened and expanded our existing international loca-          net-worth individuals. Through close collaboration with
         tions both in emerging and mature markets. We will con-             Investment Banking and Asset Management, we can
         tinue to target onshore and offshore growth in emerging             deliver comprehensive products and solutions, for exam-
         markets in Asia, the Middle East, Eastern Europe and                ple, equity derivatives, real estate financing, equity capital
         Latin America, where we expect significant levels of                markets, mergers and acquisitions and private placements,
         wealth generation, as well as in mature markets, where              as well as specialist support. We have established a key
         the majority of wealth still resides. The launch of onshore         client coverage model with focused account managers
         operations in India, Japan, Mexico and Panama is cur-               ensuring comprehensive service for our most important
         rently underway. A strategic recruiting team supports our           clients. Furthermore, we have established a global invest-
         management to efficiently recruit approximately 1,000               ment product sales committee to optimize the distribution
         relationship managers by 2010 to foster business growth.            of investment products to high-net-worth individuals.
         We expect the majority of these relationship managers will      p   Productivity and financial performance: We target contin-
         support our international businesses.                               ued profitable growth and a pre-tax income margin above
     p Market share gains in Switzerland: In 2007, we again                  40% over market cycles. Revenue growth will be mostly
         delivered strong profit in our home market. Despite its             driven by strengthening our international platforms and by
         maturity, we see further significant value potential and            further shaping our product offering such as managed
         aspire to above-average growth prospects for our Swiss              investment products. Pre-tax income is expected to bene-
         business. Growth will be driven by a number of specific ini-        fit from our continued strict cost management and
         tiatives, including a focus on client needs (for example,           increased productivity and efficiency from our Operational
         further enhancement of our life cycle concept for individ-          Excellence program and our Centers of Excellence.
         ual clients), product and business innovation (for example,     p   Best people: We strive to be the employer of choice for
         enhanced financing solutions) and improvements in advice            the best talent. A dedicated team supports our manage-
         and service (for example, upgrade of our branch network             ment to efficiently recruit the number of relationship man-
         through selective expansion and refurbishment). Further-            agers needed to foster business growth. Our global cam-
         more, we will fully leverage our Swiss franchise to exploit         pus activities ensure a continuous inflow of university
         cross-business synergies, such as offering tailor-made              graduates to strengthen our skills and knowledge base.
                                                                             Through a systematic and targeted human capital man-
                                                                                                  Information on the company            21




   agement process, we manage training and development,           p Wealth management solutions: We offer a range of wealth
   promotion, succession planning and compensation.                 management solutions, from pension planning, wealth and
                                                                    inheritance advisory services and tax planning to advice on
Products and services                                               life insurance. We also offer tailor-made solutions for indi-
Wealth Management                                                   viduals and families with assets generally exceeding CHF
At the core of our service offering is the Structured Advisory      50 million.
Process and our comprehensive investment services and             p Corporate advisory: We provide a range of corporate advi-
wealth management solutions. We offer global execution              sory services to address the needs of entrepreneurs,
capabilities through multiple booking platforms:                    working closely with the specialists from Investment Bank-
p Structured Advisory Process: We analyze our clients’ per-         ing. Clients receive the advice of Credit Suisse’s experi-
    sonal financial situation and prepare investment strategies     enced corporate finance advisors, immediate access to a
    based on an individual risk profile and level of “free          network of international investors in the public and private
    assets,” which excludes the assets required to cover fixed      markets, the preparation and coordination of financial
    and variable liabilities. Based on this profile, we recom-      transactions and the maximization of company value.
    mend specific investments in accordance with the invest-
    ment guidelines of the Credit Suisse Investment Commit-       Corporate & Retail Banking
    tee. The implementation and monitoring of the client          We offer a comprehensive range of commercial and retail
    portfolio is carried out by the relationship managers. The    banking products. For retail clients, we provide flexible finan-
    Structured Advisory Process has been rolled out to            cial solutions to suit every stage of their life, including private
    Switzerland and the majority of our international locations   accounts, payment transactions, foreign exchange services,
    and we expect to complete the roll-out during 2008.           pension products and life insurance. Additionally, we offer a
p Investment services: We offer a comprehensive range of          range of financing products, such as construction loans, fixed
    investment advice and discretionary asset management          and variable rate mortgages, consumer, car and real estate
    services based on the analysis and recommendations of         loans, different types of leasing arrangements and various
    our global research team. Investment advice covers a          credit cards, directly and through a joint venture. The private
    range of services from portfolio consulting to advising on    credit and car leasing businesses are provided by BANK-now.
    individual securities. We continuously aspire to offer        The range of savings products available to retail clients
    clients effective portfolio and risk management solutions,    includes savings accounts and savings plan funds and insur-
    including managed investment products. These are prod-        ance. We supply a range of investment products and services,
    ucts actively managed and structured by our specialists,      such as safekeeping accounts, bonds, investment funds and
    providing private investors with access to asset classes      innovative product solutions specifically designed for retail
    such as private equity or specialist hedge funds that oth-    clients.
    erwise would not be available to them. For clients with           To meet the needs of corporate clients, including Swiss
    more complex requirements, we provide investment port-        subsidiaries of multinational corporations, we offer services
    folio structuring and the implementation of individual        such as corporate finance, trade finance and ship financing,
    strategies, including a wide range of structured products     capital goods and real estate leasing, traditional lending and
    and alternative investments. Discretionary asset manage-      payment transactions. Large corporate clients can benefit
    ment services are available to clients who wish to delegate   from tailor-made financial solutions and advice. In order to pro-
    the responsibility for investment decisions to Credit         vide a more targeted response to our clients’ growing demand
    Suisse. Discretionary asset management comprises four         for flexible financing alternatives, we are introducing factoring
    portfolio management mandates – Classic, Funds & Alter-       as a new product offering to our corporate clients in the first
    native Investments, Total Return Strategy and Premium.        quarter of 2008. We also supply specialized products and
    The Premium mandate includes investment strategies            services, such as business process outsourcing, multi-cur-
    such as capital preservation, growth, current return and      rency offerings, straight-through-processing equities execu-
    customized solutions. In close collaboration with Invest-     tion and custody services, to small and medium-sized banks,
    ment Banking and Asset Management, we also provide            Swiss pension funds and insurance companies.
    innovative alternative investments with limited correlation
    to equities and bonds, such as hedge funds, private equity,
    commodities and real estate.
22




     Investment Banking                                                    ing Awards, in which Credit Suisse was awarded “Best
                                                                           Convertibles House.”
     Business profile                                                    p Credit Suisse won several country, product and deal
     In Investment Banking, we offer investment banking and secu-          awards in The Asset’s Asian 2007 Awards, including “Best
     rities products and services to corporate, institutional and gov-     Foreign Investment Bank” in Indonesia, Korea and Viet-
     ernment clients around the world. Our products and services           nam.
     include debt and equity underwriting, sales and trading, merg-
     ers and acquisitions advice, divestitures, corporate sales,         Significant transactions
     restructuring and investment research. With 20,600 employ-          We announced a number of significant transactions in 2007
     ees operating in 57 locations across 26 countries, we have a        reflecting the breadth and diversity of our investment banking
     presence in all major financial centers as well as emerging         franchise:
     markets throughout the world.                                       p Debt capital markets: We arranged key financings for a
                                                                             diverse set of clients, including Community Health Sys-
     2007 industry awards                                                    tems Inc. (US hospital operator), Energy Future Holdings
     We received numerous industry awards in 2007, including:                Corp. (formerly TXU Corp., US energy company), Univi-
     p “Best Investment Bank of 2007” – Credit Suisse was                    sion Communications (Spanish-language television chan-
        named the top global investment bank by The Banker,                  nel), Wal-Mart (US-based retailer) and Fiserv, Inc. (US
        which noted our momentum across regions and products                 technology solutions provider).
        and the success of our integrated bank strategy.                 p Equity capital markets: We led the IPOs for Bovespa Hold-
     p “Best Overall Investment Bank in Latin America” – Credit              ing (operator of Brazil’s largest stock exchange), National
        Suisse led the LatinFinance Investment Banking Poll                  CineMedia (digital in-theatre network in North America),
        2007, underscoring our market-leading franchise across               Eurasian Natural Resource Corporation PLC (global diver-
        Latin America. Top awards included “Best Equity Under-               sified mining company) and Belle International Holdings
        writer”, “Best Debt Underwriter”, “Best Sales & Trading”,            (Chinese retailer). In addition, we led the first-ever IPO of
        “Best Execution”, “Best Buyside Relationships”, “Best                a microfinance institution, Banco Compartamos, S.A., in
        Long-Term Partner” and “Best Overall.”                               Mexico.
     p “Best Leveraged Finance House” and “Best Emerging                 p Mergers and acquisitions: We advised on a number of key
        Markets Debt House” in the Euromoney annual “Awards                  transactions that were announced during the year, includ-
        for Excellence” feature. Credit Suisse also collected 14             ing TXU Corp. on its sale to KKR and Texas Pacific Group,
        regional, country and product awards, recognizing our                which was both the largest US utilities acquisition and the
        achievements and expertise around the world.                         largest leveraged buyout at the time. Other notable trans-
     p Credit Suisse’s AES ® platform was ranked first by                    actions included Community Health Systems’ acquisition
        investors in three categories (algorithmic trading, direct           of Triad Hospitals, the acquisition of Intelsat Ltd. (global
        market access and overall electronic trading services)               provider of satellite services) by an investor group led by
        relating to electronic trading and execution services in the         BC Partners and the sale of The Tokyo Star Bank (Japan-
        annual pan-European Extel survey conducted by Thomson                ese bank) by Lone Star Funds (private equity firm) to an
        Financial.                                                           investor group led by Advantage Partners. Both the TXU
     p Credit Suisse was recognized as mergers and acquisitions              Corp. and Community Health Systems transactions were
        advisor on four landmark transactions by Acquisitions                recently awarded “Deal of the Year” for 2007 by Invest-
        Monthly, a leading trade publication owned by Thomson                ment Dealers’ Digest.
        Financial, in its annual awards edition. Recognizing our
        advisory expertise across a range of sectors and countries,      Trends and competition
        Credit Suisse was cited in more categories than any other        Investment Banking is well positioned to benefit from a num-
        investment bank.                                                 ber of trends in the industry. With a leading position in emerg-
     p Credit Suisse ranked first in European convertible bonds          ing markets, Investment Banking is likely to benefit from the
        for the third year in a row and first in Asian (non-Japan)       increasing importance of these rapidly developing economies.
        convertibles for the second year in a row in Greenwich           The rising demand for alternative investments is expected to
        Associates’ annual survey. This recognition closely follows      continue to fuel growth of our prime services business, which
        our recent success in The Banker 2007 Investment Bank-           has been recognized as a top provider to hedge funds. We are
                                                                         actively investing in growth areas including commodities and
                                                                                                    Information on the company           23




derivatives and our strength in technology and our AES ® plat-      institutions, financial sponsors, industrial and services, health-
form positions us well to benefit from the continued move           care, media and telecom, real estate and technology. The
towards electronic execution. In addition, recent high volatility   product groups include mergers and acquisitions and financing
levels have driven increased volumes in our flow trading busi-      products. In global securities, we engage in a broad range of
nesses, and Investment Banking remains well positioned in the       activities across fixed income, currencies, commodities and
leveraged finance and structured products businesses despite        equities cash and derivatives markets, including sales, struc-
challenging market conditions.                                      turing, trading, financing, prime brokerage, syndication and
    Investment Banking faces intense global competition             origination, among others.
across each of its businesses. We compete with investment               In 2007, we reorganized our fixed income and equity busi-
and commercial banks, broker dealers and other firms offering       nesses into global securities in order to better align the busi-
financial services. New entrants into the financial services and    ness with the firm’s overall strategy and growth objectives and
execution markets, such as commercial banks and technology          to identify and capture synergies across fixed income and
companies, have contributed to further market fragmentation,        equity trading. The two departments, which had been sepa-
fee and spread compression and product commoditization.             rately managed, have now been organized under common
                                                                    leadership and have begun to collaborate across various func-
Strategy and initiatives                                            tions on initiatives which will significantly benefit our clients,
In addition to our integrated bank strategy, we have defined        strengthen our risk and exposure management, share best
five critical areas of focus for Investment Banking:                practices and improve efficiency and reduce our costs. Global
p Clients: In 2007, we reorganized our client securities busi-      securities remains highly focused on delivering the integrated
    ness to offer a single point of contact to enable us to bet-    bank to our clients and capturing growth opportunities across
    ter address client needs. We will continue to work to           product lines.
    develop our integrated cross-securities client model and
    improve client segmentation as well as economic trans-          Investment banking
    parency at the client level.                                    Equity and debt underwriting
p Growth: We will develop business in high growth areas             Equity capital markets originates, syndicates and underwrites
    where Investment Banking lags behind the competition            equity in IPOs, common and convertible stock issues, acquisi-
    and invest in new businesses while continuing to grow           tion financing and other equity issues. Debt capital markets
    customer revenue streams in established markets and             originates, syndicates and underwrites corporate and sover-
    products. In addition, we will focus our origination efforts    eign debt.
    and improve collaboration between our securities and
    investment banking departments.                                 Advisory services
p Efficiency: We will further our cost management initiatives       Advisory services advises clients on all aspects of mergers and
    and improve front-to-back coordination through cross-           acquisitions, corporate sales and restructurings, divestitures
    product infrastructure development.                             and takeover defense strategies. The private fund group holds
p Capital and risk: We will work to diversify our business mix      a market-leading position in raising capital for hedge funds,
    and revenues and allocate our capital accordingly. We will      private equity funds and real estate funds. The fund-linked
    manage our portfolio across global securities and take          products group is responsible for the structuring, risk manage-
    advantage of our origination capabilities.                      ment and distribution of structured mutual fund and alternative
p People, reputation and brand: We strive to improve recruit-       investment products and develops innovative products to meet
    ing, strengthen our reputation in the industry and grow         the needs of its clients through specially tailored solutions.
    brand awareness in new areas and with new clients.
                                                                    Global securities
Products and services                                               Credit Suisse delivers holistic advice on the management of a
Our comprehensive portfolio of products and services is             wide range of debt and equity and financing opportunities
geared to match the needs of the most sophisticated clients.        across the capital structure to corporate, sovereign and institu-
We increasingly use integrated platforms to ensure efficiency       tional clients. Global securities is structured into the following
and transparency. Our activities are organized around two           areas:
broad functional areas: investment banking and global securi-
ties. In investment banking, we work in industry, product and
country groups. The industry groups include energy, financial
24




     Fixed income                                                       Emerging markets
     Rates                                                              p Emerging markets offers a full range of fixed income prod-
     p Interest rate products makes markets in the government             ucts and instruments, including sovereign and corporate
         bond and associated over-the-counter (OTC) derivative            securities, local currency derivative instruments and tai-
         swap markets of non-emerging economies. Its products             lored emerging market investment products.
         include government bonds, bond options, interest rate
         swaps, interest rate options and structured interest rate      Commodities
         derivatives.                                                   p Commodities focuses on the power and natural gas trad-
     p Foreign exchange provides market-making and positioning            ing business, as well as oil, petroleum and metals trading
         in products such as spot and options for currencies in non-      through an alliance with Glencore, one of the world’s
         emerging markets. It also supplies dedicated research and        largest suppliers of a wide range of commodities and raw
         strategy and structured advisory services.                       materials to industrial consumers. The commodities group
     p Listed derivatives provides innovative derivative product          also conducts carbon-emissions credit trading and struc-
         support, drawing on its global execution capabilities, elec-     turing.
         tronic trading system and sophisticated analytics.
                                                                        Non-correlated risk
     Credit                                                             p Life finance provides high-net-worth individuals and small
     p Credit products offers a full range of fixed income prod-           to medium-sized businesses with financing and risk man-
        ucts and instruments to clients, ranging from standard             agement solutions associated with purchasing and retain-
        debt issues and credit research to fund-linked products,           ing a life insurance policy.
        derivatives instruments and structured products that
        address specific client needs.                                  Global structuring
     p Credit derivatives trades and structures credit derivatives      p Global structuring develops and delivers sophisticated
        on investment grade and high-yield credits. It is a leading        financing products and provides financial advisory services
        dealer in both flow business, which trades single-name             for corporate and institutional clients and develops sophis-
        credit default swaps on individual credits, credit-linked          ticated products for investor clients. In addition to identify-
        notes and index swaps and structured products, providing           ing opportunities across asset classes, it provides a robust
        credit hedging solutions to clients.                               platform for the creation of sophisticated asset-side solu-
     p Leveraged finance provides capital raising and advisory             tions.
        services and core leveraged credit products such as bank
        loans, bridge loans and high-yield debt for below-invest-       Equity
        ment grade corporate and financial sponsor-backed com-          p Equity sales uses its knowledge of Credit Suisse’s
        panies.                                                            research, offerings and other products and services to
     p Investment grade trades domestic corporate and sovereign            meet the needs of clients including mutual funds, invest-
        debt, non-convertible preferred stock and short-term               ment advisors, banks, pension funds, hedge funds, insur-
        securities such as floating rate notes and commercial              ance companies and other global financial institutions.
        paper (CP).                                                     p Equity derivatives provides a full range of equity-related
                                                                           products, investment options and financing solutions, as
     Structured products                                                   well as sophisticated hedging and risk management
     p Structured products trades, originates, securitizes, syndi-         expertise and comprehensive execution capabilities. Its
         cates, underwrites and provides research for all forms of         clients include financial institutions, hedge funds, asset
         securities that are based on underlying pools of assets,          managers and corporations.
         including commercial mortgage-backed securities                p Convertibles trading involves both secondary trading and
         (CMBS), residential mortgage-backed securities (RMBS)             market-making. It also offers the trading of credit default
         collateralized debt obligations (CDO) and other asset-            swaps and asset swaps and distributes market information
         backed securities (ABS). The underwriting business han-           and research.
         dles securitizations for clients in most industry sectors.     p Sales trading forms the link between the sales and posi-
                                                                           tion trading areas. Sales traders are responsible for man-
                                                                           aging the order flows between the client and the market-
                                                                           place. It also provides clients with research, trading ideas
                                                                                                 Information on the company           25




  and capital commitments and identifies trends in the mar-       Asset Management
  ketplace used to obtain the best and most effective exe-
  cution.                                                         Business profile
p Trading executes client and proprietary orders and makes        In Asset Management, we offer integrated investment solu-
  markets in listed and OTC cash securities, exchange-            tions and services to clients globally, ranging from govern-
  traded funds and programs, providing liquidity to the mar-      ments, institutions and corporations to individuals. We offer
  ket through both capital commitments and risk manage-           investment products across the full spectrum of asset classes,
  ment.                                                           including equities, fixed income, commodities and multi-asset
p Prime services provides a wide range of services to hedge       class products. We also offer a full range of alternative invest-
  funds and institutional clients, including prime brokerage,     ments, including real estate, hedge funds, private equity and
  start-up services, capital introductions, securities lending,   volatility management. With 865 investment professionals
  synthetics and innovative financing solutions.                  located in Zurich, New York, Los Angeles, London, Frankfurt,
p AES ® is a sophisticated suite of algorithmic trading strate-   Hong Kong, Singapore, Mumbai, Tokyo and Sydney, we focus
  gies, tools and analytics operated by Credit Suisse to facil-   on providing maximum returns within the investors’ criteria,
  itate global equity trading. AES ® helps institutions and       while maintaining a controlled risk profile, adherence to com-
  hedge funds reduce market impacts by limiting the volatil-      pliance and best execution.
  ity of a stock by employing algorithms to execute client            We had CHF 691.3 billion in assets under management as
  orders. This algorithmic trading service, which is a leader     of the end of 2007. These assets under management include
  in its field, is available on 23 exchanges worldwide via        innovative high margin products, such as alternative invest-
  leading trading platforms.                                      ments and asset allocation (balanced) strategies.
                                                                      In alternative investments, including liquid and illiquid
Proprietary trading                                               strategies, we are an industry leading manager with CHF
p Proprietary trading conducts trading in the major global        165.4 billion in assets under management as of the end of
   fixed income and equity markets.                               2007. Liquid alternative investments include diversified strate-
                                                                  gies such as real estate securities, distressed debt and volatil-
Other                                                             ity management, and funds and alternative solutions, including
p Other products and activities include lending, private          quantitative strategies and fund of hedge funds. Illiquid alter-
   equity investments that are not managed by Asset Man-          native investments include private equity and real estate.
   agement, certain real estate investments and the dis-              In balanced products, where we provide innovative solu-
   tressed asset portfolios. Lending includes senior bank         tions across asset classes to clients around the world, we have
   debt in the form of syndicated loans and commitments to        a strong position with CHF 284.0 billion in assets under man-
   extend credit to investment grade and non-investment           agement. We have a global platform, having recently estab-
   grade borrowers. Valuations on bridge loans and commit-        lished a presence in the US, the Middle East and Asia, offer-
   ments are included in other revenues. Other loan portfolio     ing clients seamless cross border multi-asset class solutions.
   revenues are included in our businesses, primarily fixed           Our business mix is broadly balanced across asset classes
   income trading.                                                and strategies, and we see our particular strength in our
                                                                  sophisticated asset allocation capabilities, delivering alpha
Research and HOLT                                                 returns coupled with access to best-in-class investment
Credit Suisse’s equity and fixed income businesses are sup-       strategies. We pursue an active cooperation strategy, and our
ported by the research and HOLT functions.                        partnerships and joint ventures provide us with access to key
p Equity research uses in-depth analytical frameworks, pro-       markets and additional distribution channels. As part of the
   prietary methodologies and data sources to analyze             client-focused integrated bank strategy, we are increasingly
   approximately 2,500 companies worldwide and provides           coordinating and leveraging our activities with Private Banking
   macro-economic insights into this constantly changing          and Investment Banking. We benefit from their increased
   environment.                                                   focus on complex client needs and targeted solutions, as we
p HOLT offers one of the fastest and most advanced corpo-         support them with our product expertise and our global reach.
   rate performance, valuation and strategic analysis frame-
   works.                                                         Trends and competition
                                                                  We expect growth in the asset management industry, driven by
                                                                  the continued global wealth accumulation in mature and
26




     emerging markets. We experience strong competition from           Products and services
     specialized boutique investment managers and large-scale          Asset Management offers institutional and individual clients a
     players. Increased client sophistication, including demand for    range of products through proprietary and third-party distribu-
     risk diversification, performance and transparency, has placed    tion channels.
     the industry under increased pressure. We believe the need to
     deliver product performance and innovative solutions at com-      Institutional Investors
     petitive costs will increase. As a consequence, we expect con-    We offer discretionary asset management services to institu-
     tinued industry consolidation but see opportunities in innova-    tional clients through segregated or pooled accounts. Advisory
     tive investment solutions for complex client needs.               services include advice on customized investment opportuni-
         Innovative and higher margin alpha product capabilities       ties, as well as new product and risk liability management
     include private equity, real estate, customized funds, struc-     strategies. A broad range of products and advisory services is
     tured products, quantitative strategies and hedge fund solu-      offered to institutional clients around the world.
     tions. To provide these types of services, the barriers between
     traditional banking businesses, such as asset management          Individual Investors
     and investment banking, are disappearing as they increasingly     We offer a wide range of open-end and closed-end funds to
     require similar talent and capabilities. Against this backdrop,   individual investors around the world, marketed under the
     we benefit from our integrated bank strategy, as our close        Credit Suisse brand. The largest complex of funds, domiciled
     relationship with Private Banking and Investment Banking          in Luxembourg and marketed primarily in Europe, includes a
     gives us access to additional product expertise, deal flow and    full range of money market, fixed income, equity and balanced
     distribution channels.                                            investments. In addition to these pan-European mutual funds,
                                                                       we offer domestic registered funds in the US, Switzerland, the
     Strategy and initiatives                                          UK, Germany, Italy, France, Poland, Japan and Australia.
     We continue to strengthen and improve our organization,
     capabilities, client focus and efficiency. We are developing a    Asset classes
     boutique structure around our alpha investment strategies and     Fixed income and money market
     performance metrics. Our strategic priorities include:            We offer our clients a broad range of fixed income strategies
     p Investment performance: Clients increasingly differentiate      that include traditional bond benchmark and absolute return
        between alpha and beta investment performance, and our         products, incorporating government bonds, corporate bonds,
        ambition is to deliver superior alpha performance. We are      structured products, global high-yield bonds, emerging market
        focused on our competencies in asset allocation and alpha      debt securities, convertible bonds and currencies. We have a
        investment strategies and delivering efficient beta per-       variety of fixed income strategies to meet differing risk pro-
        formance to continue to align our product offering and         files, with strong emphasis on risk management.
        operating structures to the requirements of our clients.           We have a team of experienced professionals who work
     p Geographic reach and distribution: We continue to expand        with clients around the world to find effective cash solutions.
        our geographic footprint and drive growth organically,         Access to a suite of taxable liquidity funds and taxable and
        through cooperation strategies and bolt-on acquisitions.       tax-exempt customized portfolios helps meet the preservation
        We increasingly leverage internal distribution channels and    and liquidity needs of clients, including strategies for currency
        aim to expand global distribution.                             exposure and overall cash management. Strategies include
     p Innovation: We continue to build new products and invest-       short-term liquidity, pooled investment vehicles and cus-
        ment capabilities. We expect to enhance our active prod-       tomized portfolios.
        uct line management and increase product density.
     p Efficiency: We continue with our cost management initia-        Equity
        tives and the streamlining of our operating platforms,         We have a team of investment professionals offering clients a
        including the evaluation of outsourcing opportunities, and     broad suite of equity products. Investment strategies include
        look to further leverage our Centers of Excellence.            developed and emerging markets, global, regional and single
     p Talent: We continue to strengthen our product develop-          country products, as well as sector funds and products, span-
        ment, investment and distribution capabilities by hiring the   ning a range of market capitalizations.
        best talent and developing our top performers.
                                                                                                     Information on the company           27




Balanced                                                             secondary and fund of private equity funds. In the area of
In the area of balanced investments, we provide clients around       hedge funds, we offer single strategy funds as well as fund of
the world with innovative solutions and comprehensive man-           hedge funds and customized funds. In real estate, we offer
agement across asset classes to optimize client portfolios,          real estate investment trust funds that invest directly in real
with services that range from funds to fully customized solu-        estate, funds that invest in listed real estate companies and
tions.                                                               other real estate securities.

Alternative Investments                                              Private equity investments
We are a market leader in alternative investments, with a            We have made direct investments as well as investments in
range of products, including private equity, hedge funds and         partnerships that make private equity and related investments
fund of hedge funds, real estate, leveraged investments,             in various portfolio companies and funds. We offer our employ-
volatility management and quantitative strategies. We offer a        ees opportunities to invest, side by side, in certain invest-
broad array of private equity funds including customized,            ments.
equity, leveraged buyout, mezzanine, real estate private equity,



Organizational structure
Consistent with our integrated bank strategy, our regional               The regions perform a number of essential functions to
structure ensures that we present one face to the client and         coordinate and support the global operations of the three divi-
that our three divisions and reporting segments – Private            sions. On a strategic level, they are responsible for corporate
Banking, Investment Banking and Asset Management –                   development and the establishment of regional business plans,
increasingly coordinate their efforts, leveraging the support        projects and initiatives. They also have an oversight role in
provided by Shared Services.                                         monitoring financial performance. Each region is responsible
    The management teams of our three global divisions and           for the regulatory relationships within its boundaries, as well as
reporting segments are responsible for driving and coordinat-        for regulatory risk management and the resolution of signifi-
ing significant business initiatives. The CEOs of the three divi-    cant issues in the region as a whole or its constituent coun-
sions report directly to the CEO of Credit Suisse and, together      tries. Other responsibilities include client and people leader-
with the four regional CEOs, are responsible for ensuring a          ship and the coordination of the delivery of Shared Services
consistent strategic vision and direction across all divisions and   and business support in the region.
regions.                                                                 Shared Services provides corporate services and business
    The management teams of our four regions, each led by a          support in the fields of finance, operations, including human
regional CEO, play a pivotal role in ensuring that we present        resources, legal and compliance, risk management and infor-
one face to the client. Our regional structure is designed to        mation technology:
promote cross-divisional collaboration while leveraging              p The Chief Financial Officer (CFO) area includes financial
resources and synergies within each region. The four geo-                accounting, controlling, product control, tax, treasury,
graphic regions are:                                                     investor relations, new business and global insurance.
p Americas – comprising operations in the US, Canada and             p The Chief Operating Officer (COO) area encompasses the
    Latin America;                                                       areas of human resources, the business school, corporate
p Asia Pacific – primarily comprising operations in Australia,           real estate and services, corporate development, supply
    China, Hong Kong, India, Indonesia, Japan, Korea,                    management, corporate communications, public policy and
    Malaysia, the Philippines, Singapore, Taiwan and Thailand;           operational excellence.
p Europe, Middle East and Africa (EMEA) – comprising                 p The General Counsel area provides legal and compliance
    operations in 28 countries, primarily managed in the UK;             support to the business and other areas of Shared Ser-
    and                                                                  vices to protect the reputation of Credit Suisse by ensur-
p Switzerland – comprising operations in our home market.                ing that employees have the necessary tools and expertise
                                                                         to comply with all applicable internal policies and external
                                                                         laws, rules and regulations.
28




     p The Chief Risk Officer (CRO) area comprises strategic risk        p Information Technology leverages technology across the
       management, credit risk management, risk measurement                business to facilitate execution and product delivery and
       and management and operational risk oversight, which                innovative systems and platforms to meet the needs of the
       cooperate closely to maintain a strict risk control environ-        other areas within Shared Services.
       ment and to help ensure that our risk capital is deployed
       wisely.



     Regulation and supervision
     Overview                                                                The SFBC is the highest bank supervisory authority in
                                                                         Switzerland and is independent from the Swiss National Bank
     Our operations are regulated by authorities in each of the juris-   (SNB). Under the Bank Law, the SFBC is responsible for the
     dictions in which we have offices, branches and subsidiaries.       supervision of the Swiss banking system. The SNB is respon-
     Central banks and other bank regulators, financial services         sible for implementing the government’s monetary policy relat-
     agencies, securities agencies and exchanges and self-regula-        ing to banks and securities dealers and for ensuring the stabil-
     tory organizations are among the regulatory authorities that        ity of the financial system.
     oversee our banking, investment banking and asset manage-               Our banks in Switzerland are subject to close and continu-
     ment businesses. The supervisory and regulatory regimes of          ous prudential supervision and direct audits by the SFBC.
     the countries in which we operate will determine to some            Under the Bank Law, our banks are subject to inspection and
     degree our ability to expand into new markets, the services         supervision by an independent auditing firm recognized by the
     and products that we will be able to offer in those markets and     SFBC, which is appointed by the bank’s Board of Directors
     how we structure specific operations.                               and required to perform annual audits of the bank’s financial
         There is coordination among our primary regulators in           statements and to assess whether the bank is in compliance
     Switzerland, the US and the UK. The principal regulatory            with laws and regulations, including the Bank Law, the Imple-
     structures that apply to our operations are discussed below.        menting Ordinance and SFBC regulations.
                                                                             Under the Bank Law, a bank must maintain an adequate
                                                                         ratio between its capital resources and its total risk-weighted
     Switzerland                                                         assets and this requirement applies to the Group on a consol-
                                                                         idated basis. For purposes of complying with Swiss capital
     Although Credit Suisse Group is not a bank according to the         requirements, bank regulatory capital is divided into tier 1
     Swiss Federal Law on Banks and Savings Banks of November            (core), tier 2 (supplementary) and tier 3 (additional) capital.
     8, 1934, as amended (Bank Law), and its Implementing Ordi-              Our regulatory capital is calculated on the basis of
     nance of May 17, 1972, as amended (Implementing Ordi-               accounting principles generally accepted in the US (US
     nance), it is required, pursuant to a Swiss Federal Banking         GAAP), with certain adjustments required by, or agreed with,
     Commission (SFBC) decree, to comply with certain require-           the SFBC. The Group is required by the Bank for International
     ments for banks, including with respect to capital adequacy,        Settlements (BIS) to maintain a minimum regulatory capital
     solvency and risk concentration on a consolidated basis and         ratio of 8% measured on a consolidated basis, calculated by
     reporting obligations. Our banks in Switzerland are regulated       dividing total eligible capital, adjusted for certain deductions,
     by the SFBC on a legal entity basis and, if applicable, on a        by aggregate risk-weighted assets.
     consolidated basis.                                                     We became subject to the requirements of the Basel II
         Our banks in Switzerland operate under banking licenses         capital adequacy standards on January 1, 2008, subject to a
     granted by the SFBC pursuant to the Bank Law and the                “Swiss finish” under the Capital Adequacy Ordinance. As of
     Implementing Ordinance. In addition, certain of these banks         the end of 2007, the BIS tier 1 ratio under Basel II would have
     hold securities dealer licenses granted by the SFBC pursuant        been approximately 120 basis points lower than the BIS Tier 1
     to the Swiss Federal Act on Stock Exchanges and Securities          ratio under Basel I for the Group and the Bank. For further
     Trading of March 24, 1995 (SESTA).                                  information on our capital, refer to III – Balance sheet, Off-
                                                                         balance sheet, Treasury and Risk – Capital management.
                                                                                                    Information on the company           29




    Banks are required to maintain a specified liquidity ratio      would increase if the New York Branch is no longer designated
under Swiss law. According to the SFBC’s decree, the Group          as well rated.
is required to maintain adequate levels of liquidity on a consol-       The New York Banking Law authorizes the Superintendent
idated basis and is not required to comply with the detailed        to take possession of the business and property of the New
calculations for banks.                                             York Branch under circumstances generally including violations
    Under Swiss banking law, banks and securities dealers are       of law, unsafe or unsound practices or insolvency. In liquidat-
required to manage risk concentration within specific limits.       ing or dealing with the New York Branch’s business after tak-
Aggregated credit exposure to any single counterparty or a          ing possession, the Superintendent would only accept for pay-
group of related counterparties must bear an adequate rela-         ment the claims of creditors (unaffiliated with us) that arose
tionship to the bank’s eligible capital, taking into account        out of transactions with the branch. After the claims of those
counterparty risks and risk mitigation instruments.                 creditors were paid out of the business and property of the
    Under the Bank Law and SESTA, Swiss banks and securi-           New York Branch, the Superintendent would turn over the
ties dealers are obligated to keep confidential the existence       remaining assets, if any, to us or our liquidator or receiver.
and all aspects of their relationships with customers. These            Under New York Banking Law, the New York Branch is
customer confidentiality laws do not, however, provide protec-      generally subject to the single borrower lending limits
tion with respect to criminal offenses such as insider trading,     expressed as a percentage of the worldwide capital of the
money laundering, terrorist financing activities or tax fraud or    Bank.
prevent the disclosure of information to courts and adminis-            Our operations are also subject to reporting and examina-
trative authorities.                                                tion requirements under US federal banking laws. Our US
    Our securities dealer activities in Switzerland are con-        non-banking operations are subject to examination by the
ducted primarily through the Bank and are subject to regula-        Board of Governors of the Federal Reserve System (FRB) in
tion under SESTA, which regulates all aspects of the securities     its capacity as our US umbrella supervisor. The New York
dealer business in Switzerland, including regulatory capital,       Branch is also subject to examination by the FRB. The New
risk concentration, sales and trading practices, record-keeping     York Branch (and each other US banking office) is subject to
requirements and procedures and periodic reporting proce-           US federal reserve requirements on deposits and restrictions
dures. Securities dealers are supervised by the SFBC.               on the payment of interest on demand deposits. Because the
    Our asset management activities in Switzerland, which           New York Branch does not engage in retail deposit taking, it is
include the establishment and administration of mutual funds        not a member of, and its deposits are not insured by, the Fed-
registered for public distribution, are conducted under the         eral Deposit Insurance Corporation.
supervision of the SFBC.                                                US federal banking laws provide that a state-licensed
                                                                    branch or agency of a foreign bank may not, as a general mat-
                                                                    ter, engage in any type of activity that is not permissible for a
US                                                                  federally licensed branch or agency of a foreign bank unless
                                                                    the FRB has determined that such activity is consistent with
Our operations are subject to extensive federal and state reg-      sound banking practice. US federal banking laws also subject
ulation and supervision in the US. Our US banking offices are       a state branch or agency to single borrower lending limits
composed of a New York branch (New York Branch), a US               based on the capital of the entire foreign bank.
administrative office in Florida and representative offices in          The FRB may terminate the activities of a US branch or
New York and California. Each of these offices is licensed          agency of a foreign bank if it finds that the foreign bank: (i) is
with, and subject to examination and regulation by, the state       not subject to comprehensive supervision in its home country;
banking authority in the state in which it is located.              or (ii) has violated the law or engaged in an unsafe or unsound
    The New York Branch is licensed by the Superintendent of        banking practice in the US.
Banks of the State of New York (Superintendent), examined               A major focus of US policy and regulation relating to finan-
by the New York State Banking Department, and subject to            cial institutions has been to combat money laundering and ter-
laws and regulations applicable to a foreign bank operating a       rorist financing. These laws and regulations impose obligations
New York branch. Under the New York Banking Law, the New            to maintain appropriate policies, procedures and controls to
York Branch must maintain eligible assets with banks in the         detect, prevent and report money laundering and terrorist
state of New York. The amount of eligible assets required,          financing, verify the identity of customers and comply with
which is expressed as a percentage of third-party liabilities,      economic sanctions. Our failure to maintain and implement
                                                                    adequate programs to combat money laundering and terrorist
30




     financing, and violations of such economic sanctions, laws and            Our broker-dealers are registered with the SEC and in all
     regulations, could have serious legal and reputational conse-        50 states, the District of Columbia and Puerto Rico, and our
     quences. We take our obligations to prevent money laundering         futures commission merchants and commodities trading advis-
     and terrorist financing very seriously, while appropriately          ers are registered with the CFTC. Our investment banking
     respecting and protecting the confidentiality of clients. We         business is subject to regulation covering all aspects of our
     have policies, procedures and training intended to ensure that       securities and futures activities, including: capital require-
     our employees comply with “know your customer” regulations           ments, the use and safekeeping of customer funds and secu-
     and understand when a client relationship or business should         rities; the suitability of customer investments; record-keeping
     be evaluated as higher risk for us.                                  and reporting requirements; employee-related matters; limita-
         On March 23, 2000, Credit Suisse Group and the Bank              tions on extensions of credit in securities transactions; pre-
     became financial holding companies for purposes of US fed-           vention and detection of money laundering and terrorist
     eral banking law and may engage in a substantially broader           financing; procedures relating to research analyst independ-
     range of non-banking activities in the US, including insurance,      ence; procedures for the clearance and settlement of trades;
     securities, private equity and other financial activities. Credit    and communications with the public.
     Suisse Group is still required to obtain the prior approval of            Our broker-dealers are also subject to the SEC’s net capi-
     the FRB (and potentially other US banking regulators) before         tal rule, which requires broker-dealers to maintain a specified
     acquiring, directly or indirectly, the ownership or control of       level of minimum net capital in relatively liquid form. Compli-
     more than 5% of any class of voting shares of any US bank,           ance with the net capital rule could limit operations that require
     bank holding company or many other US depository institu-            intensive use of capital, such as underwriting and trading
     tions and their holding companies, and the New York Branch           activities and the financing of customer account balances and
     is also restricted from engaging in certain tying arrangements       also could restrict our ability to withdraw capital from our bro-
     involving products and services. If Credit Suisse Group or the       ker-dealers. Certain of our broker-dealers are also subject to
     Bank ceases to be well-capitalized or well-managed, or other-        the net capital requirements of various self-regulatory organi-
     wise fails to meet any of the requirements for financial holding     zations.
     company status, then it may be required to discontinue newly              As registered futures commission merchants, certain of
     authorized financial activities or terminate its New York            our broker-dealers are subject to the capital and other require-
     Branch. Credit Suisse Group’s ability to undertake acquisitions      ments of the CFTC.
     permitted by financial holding companies could also be                    The investment banking and asset management busi-
     adversely affected.                                                  nesses include legal entities registered and regulated as
         The Securities and Exchange Commission (SEC) is the              investment advisers by the SEC. The SEC-registered mutual
     federal agency primarily responsible for the regulation of bro-      funds that we advise are subject to the Investment Company
     ker-dealers, investment advisers and investment companies,           Act of 1940. For pension fund customers, we are subject to
     while the Commodity Futures Trading Commission (CFTC) is             the Employee Retirement Income Security Act of 1974 and
     the federal agency primarily responsible for the regulation of       similar state statutes. We are subject to the Commodity
     futures commission merchants, commodity pool operators and           Exchange Act for investment vehicles we advise that are com-
     commodity trading advisors. In addition, the Department of the       modity pools.
     Treasury has the authority to promulgate rules relating to US
     Treasury and government agency securities, the Municipal
     Securities Rulemaking Board has the authority to promulgate          EU
     rules relating to municipal securities, and this board promul-
     gates regulations applicable to certain securities credit trans-     Since it was announced in 1999, the EU’s Financial Services
     actions. In addition, broker-dealers are subject to regulation       Action Plan has given rise to numerous measures (both direc-
     by industry self-regulatory organizations, including FINRA           tives and regulations) aimed at increasing integration and har-
     (formed by the merger of the regulatory operations of the New        monization in the European market for financial services. While
     York Stock Exchange (NYSE) and the National Association              regulations have immediate and direct effect in member
     Securities Dealers, Inc.), and by state authorities. For futures     states, directives must be implemented through national legis-
     activities, broker-dealers are subject to industry self-regulatory   lation. As a result, the terms of implementation of directives
     organizations such as the National Futures Association and           are not always consistent from country to country.
     regulation by state authorities.
                                                                                                   Information on the company           31




    The Capital Requirements Directive, implemented in vari-       tomer protection requirements, conduct of business rules and
ous EU countries including the UK, applies the Basel II capital    anti-money laundering rules. These standards, requirements
framework for banking groups operating in the EU.                  and rules are similarly implemented, under the same direc-
    On January 1, 2008, the national implementing legislation      tives, throughout the other member states of the EU in which
for the Markets in Financial Instruments Directive (MiFID)         we operate and are broadly comparable in scope and purpose
became effective in various EU countries. MiFID establishes        to the regulatory capital and customer protection requirements
high-level organizational and business conduct standards that      imposed under US law.
apply to all investment firms. These include new standards for          The London branch of Credit Suisse (London Branch),
managing conflicts of interest, best execution, customer clas-     Credit Suisse International and Credit Suisse (UK) Limited are
sification and suitability requirements for customers. MiFID       authorized to take deposits. We also have a number of entities
sets standards for regulated markets (i.e., exchanges) and         authorized to conduct investment business and asset manage-
multilateral trading facilities and sets out pre-trade and post-   ment activities. In deciding whether to grant authorization, the
trade price transparency requirements for equity trading.          FSA must first determine whether a firm satisfies the threshold
MiFID also sets standards for the disclosure of fees and other     conditions for suitability, including the requirement for the firm
payments received from or paid to third parties in relation to     to be fit and proper. In addition to regulation by the FSA, cer-
investment advice and services and regulates investments           tain wholesale money markets activities are subject to the
services relating to commodity derivatives. In relation to these   Non-Investment Products Code, a voluntary code of conduct
and other investment services and activities, MiFID provides a     published by the Bank of England which FSA-regulated firms
“passport” for investment firms enabling them to conduct           are expected to follow when conducting wholesale money
cross-border activities throughout Europe on the basis of          market business.
authorization from their home state regulator.                          The FSA requires banks operating in the UK to maintain
                                                                   adequate liquidity. The FSA cannot set capital requirements
                                                                   for London Branch, but requires Credit Suisse International
UK                                                                 and Credit Suisse (UK) Limited to maintain a minimum capital
                                                                   ratio and to monitor and report large exposures in accordance
The UK Financial Services Authority (FSA) is the principal         with the rules implementing the Capital Requirements Direc-
statutory regulator of financial services activity in the UK,      tive.
deriving its powers from the Financial Services and Markets             On January 1, 2008, MiFID became effective in the UK
Act 2000 (FSMA). The FSA regulates banking, insurance,             and applies to our authorized entities in the UK. The London
investment business and the activities of mortgage intermedi-      Branch will be required to continue to comply principally with
aries. The FSA generally adopts a risk-based approach, super-      its Swiss home country regulation.
vising all aspects of a firm’s business, including capital              Our London broker-dealer subsidiaries and asset manage-
resources, systems and controls and management structures,         ment companies are authorized under the FSMA and are sub-
the conduct of its business, anti-money laundering and staff       ject to regulation by the FSA. In deciding whether to authorize
training. The FSA has wide investigatory and enforcement           an investment firm in the UK, the FSA will consider threshold
powers, including the power to require information and docu-       conditions for suitability, including the general requirement for
ments from financial services businesses, appoint investiga-       a firm to be fit and proper. The FSA is responsible for regulat-
tors, apply to the court for injunctions or restitution orders,    ing most aspects of an investment firm’s business, including
prosecute criminal offenses, impose financial penalties, issue     its regulatory capital, sales and trading practices, use and
public statements or censures and vary, cancel or withdraw         safekeeping of customer funds and securities, record-keep-
authorizations it has granted.                                     ing, margin practices and procedures, registration standards
    As a member state of the EU, the UK is required to imple-      for individuals carrying on certain functions, anti-money laun-
ment EU directives into national law. The regulatory regime for    dering systems and periodic reporting and settlement proce-
banks operating in the UK conforms to required EU standards        dures.
including compliance with capital adequacy standards, cus-
32
II
Operating and      34 Operating environment

financial review   37 Credit Suisse

                   43 Core Results

                   47 Key performance indicators

                   48 Private Banking

                   57 Investment Banking

                   63 Asset Management

                   69 Corporate Center

                   70 Results summary

                   72 Assets under Management

                   75 Critical accounting estimates
34




     Operating environment
     The economic fundamentals were strong in the first half of 2007. The weakening of the US housing market
     and the deterioration of the US subprime mortgage markets significantly increased uncertainties about the
     valuation and the risks of structured products, adversely impacting mortgage and credit markets. In the second
     half of the year, the financial services sector was severely challenged by a liquidity squeeze, and the global
     economy lost growth momentum, particularly in the US.




     Economic environment                                                       Global equity market performance was mixed during 2007.
                                                                            Stocks in emerging markets generally outperformed mature
     On a global basis, the economic fundamentals were strong,              markets, where most financial services stocks declined signif-
     especially in the first half of 2007, providing an overall favor-      icantly. Equity yields remained attractive relative to bond yields
     able business environment. After a temporary deceleration in           throughout the year, largely reflecting attractive valuation lev-
     the first quarter, the US economy gained momentum in the               els during 2007. However, equity market volatility significantly
     second quarter on the back of strong employment numbers                increased during the second half of the year due to the dete-
     and improved business sentiment. However, the turmoil in               rioration of the US subprime mortgage markets and the spill-
     credit markets adversely impacted growth prospects in the US           over effects to other market segments and asset classes (see
     in the second half of the year. Contrary to the US, the                the chart “Equity markets”). The increased uncertainty about
     economies in Europe and particularly those in Asia and other           the valuation and risk exposures of structured products signif-
     emerging markets held up well and continued their robust               icantly increased the risk aversion of financial market partici-
     growth. Concerns about increased inflationary pressure that            pants. Spreads in structured credits widened substantially, and
     had emerged, particularly during the strong second quarter,            liquidity in some credit market segments dried up. The finan-
     eased with the lower global economic growth prospects.                 cial services sector was challenged by severe write-downs on



     Yield curves

     On the back of decelerated economic growth in the US, yield levels declined, contrary to yields in Euro or Swiss francs.

     USD                                                 EUR                                       CHF
     %                                                   %                                         %

     5.4                                                 5.0                                       3.6

     5.0                                                 4.8                                       3.4

     4.6                                                 4.6                                       3.2

     4.2                                                 4.4                                       3.0

     3.8                                                 4.2                                       2.8

     3.4                                                 4.0                                       2.6

     Years 0        5       10      15         20   25   Years 0   5   10    15     20    25       Years 0     5     10     15    20    25

     p December 31, 2006 p December 31, 2007

     Source: Datastream, Credit Suisse / IDC
                                                                                                                       Operating and financial review          35
                                                                                                                                       Operating environment




Equity markets

Equity performance was mixed, with clearly higher volatility in the second half of the year. Financial services stocks underperformed.

Performance region                                        Performance world banks                              Volatility
Index                                                     Index                                                %

150                                                       110                                                  35

138                                                       102                                                  29

126                                                        94                                                  23

114                                                        86                                                  17

102                                                        78                                                  11

 90                                                        70                                                   5
2007       1Q          2Q          3Q          4Q         2007         1Q         2Q         3Q           4Q   2007       1Q          2Q           3Q    4Q

p EM Asia               p Europe                          p MSCI World banks (rebased)                         p VDAX
p EM Latin America      p North America                   p MSCI World (rebased)                               p CBOEVIX

Source: MSCI, Bloomberg, Credit Suisse / IDC              Source: MSCI, Datastream, Credit Suisse / IDC        Source: Datastream, Credit Suisse / IDC




certain financial assets and a liquidity squeeze in some funding                       improve liquidity in money markets, central banks provided
markets. Against the backdrop of eased inflationary pressure,                          additional liquidity in December through a concerted auction-
the US Federal Reserve started to cut interest rates in August,                        ing process. However, funding conditions for banks remained
and in light of the widening turmoil in credit markets, it under-                      difficult (see the chart “Money markets”).
took further rate cuts later in the year. To support banks in                               On the back of decelerated economic growth and
managing their liquidity over the year end and to further                              investors’ flight to quality, US dollar yields declined. In con-
                                                                                       trast, yields in Euro or Swiss francs were rising on economic
                                                                                       strength, threatening inflation (see the chart “Yield curves”).
                                                                                       Towards the end of the year, the US dollar traded at historic
Money markets                                                                          lows against European currencies, reflecting the reduced
                                                                                       interest rate differential and the unwinding of carry trades. The
The increased risk aversion in the second half of 2007 made                            reduced risk appetite of market participants due to the turmoil
funding for banks more challenging, and the Ted spread widened                         in credit markets and the higher market volatility put pressure
significantly.                                                                         on those trades and led to an appreciation of funding curren-
                                                                                       cies such as the Japanese yen and the Swiss franc.
%

6.0


5.2                                                                                    Sector environment

4.4                                                                                    With the ongoing, albeit slower, global economic expansion
                                                                                       during 2007, the wealth management industry continued its
3.6                                                                                    growth trend, particularly in Asia, the Middle East and other
                                                                                       emerging markets. Growth in net new assets remained signif-
2.8
                                                                                       icant in these regions, and the number of wealth manage-
2.0
                                                                                       ment-dedicated staff continued to increase. For companies
          Jan–Feb      Mar–Apr      May–Jun     Jul–Aug      Sep–Oct        Nov–Dec
                                                                                       not reporting in US dollars, the weakness of the US dollar
2007
                                                                                       generally adversely impacted results. Increased uncertainty
p USD 1M LIBOR          p USD 1M T-Bill                                                drove client demand in capital-protected products, and
                                                                                       increased equity trading activities partially offset lower overall
Source: Bloomberg, Credit Suisse / IDC                                                 fixed income-related results.
36




     Market volumes (growth in % year-on-year)

                                                                                                                                                      Global   Europe

                                                                                                                                                      2007     2007
     Equity trading volume 1                                                                                                                          39.5      41.7

     Fixed income trading volume 2                                                                                                                    14.0      13.0

     Announced mergers and acquisitions 3                                                                                                             24.2      37.7
     Completed mergers and acquisitions 3                                                                                                             25.5      29.1

     Equity underwriting 3                                                                                                                            15.6      22.2
     Debt underwriting 3                                                                                                                              (0.2)     (4.5)

     Syndicated lending – investment-grade 3                                                                                                          19.7         –

     1                                                                          2                                                      3
         Virt-x, LSE, Deutsche Börse, NYSE Euronext, Hong Kong Stock Exchange       Deutsche Börse, Federal Reserve Bank of New York       Dealogic




         After a favorable first half of 2007, the financial services                            RMBS and CMBS. Valuations of RMBS reflected the deterio-
     sector was impacted in the third and fourth quarters by the                                 ration in the US housing sector, increased payment defaults
     turmoil in the credit markets, including valuation reductions,                              and the related actions of the ratings agencies. Valuations of
     further provisions, ratings downgrades, profit warnings, can-                               CMBS primarily reflected widening credit spreads and con-
     celled share buybacks, fears about possible dividend cuts and                               cerns of decelerating economic growth.
     the need for recapitalization and balance sheet reconstruction.                                 Within more volatile markets, equity and fixed income trad-
     Banks issued a record amount of equity-related securities in                                ing volumes were higher in 2007 than in 2006. Also, global
     the second half of the year as they rebuilt their balance sheets                            equity underwriting, IPO and mergers and acquisitions activity
     and sought funding. Sovereign wealth funds based in Asia and                                was robust and generally higher than the year before but
     the Middle East invested heavily in leading international banks.                            slowed down in the second half. Global debt underwriting was
     Towards the end of the year, the US government initiated a                                  on the level of 2006, but the strong decline in the second half
     program to freeze subprime mortgage rates under certain con-                                of 2007 reflected the turmoil in credit markets and more con-
     ditions with the goal of limiting the increase of foreclosures                              servative credit standards applied by banks and other financial
     due to payment defaults. The overall ABS market remained                                    institutions.
     difficult, and there were continued valuation reductions on
                                                                                                                                        Operating and financial review                          37
                                                                                                                                                                       Credit Suisse




Credit Suisse
In 2007, we reported net income of CHF 7,760 million, down 31% against 2006, which included income from
discontinued operations of CHF 3,070 million. Income from continuing operations was CHF 7,760 million,
down 6%. Diluted earnings per share were CHF 6.96 and return on equity was 18.0%.




Results

                                                                                                                                                            in                   % change

                                                                                                                          2007           2006           2005       07 / 06        06 / 05

Statements of income (CHF million)
Net interest income                                                                                                       8,453         6,566          6,918             29               (5)
Commissions and fees                                                                                                    19,329         17,647        14,323              10                23
Trading revenues                                                                                                          6,148         9,428          5,634            (35)               67
Other revenues                                                                                                            5,805         4,962          3,614             17                37
Net revenues                                                                                                            39,735         38,603        30,489                3               27
Provision for credit losses                                                                                                 240          (111)         (144)               –          (23)
Compensation and benefits                                                                                               16,219         15,697        13,974                3               12
General and administrative expenses                                                                                       6,916         6,445          7,378               7          (13)
Commission expenses                                                                                                       2,612         2,272          1,880             15                21
Total other operating expenses                                                                                            9,528         8,717          9,258               9              (6)
Total operating expenses                                                                                                25,747         24,414        23,232                5                5
Income from continuing operations before taxes                                                                          13,748         14,300          7,401             (4)               93
Income tax expense                                                                                                        1,250         2,389            927            (48)              158
Minority interests                                                                                                        4,738         3,630          1,948             31                86
Income from continuing operations                                                                                         7,760         8,281          4,526             (6)               83
Income from discontinued operations                                                                                            0        3,070          1,310          (100)               134
Extraordinary items                                                                                                            0          (24)              0           100                 –
Cumulative effect of accounting changes                                                                                        –              –            14              –                –
Net income                                                                                                                7,760        11,327          5,850            (31)               94

Earnings per share (CHF)
Basic earnings per share from continuing operations                                                                        7.43           7.53          3.98             (1)               89
Basic earnings per share                                                                                                   7.43         10.30           5.17            (28)               99

Diluted earnings per share from continuing operations                                                                      6.96           7.19          3.90             (3)               84
Diluted earnings per share                                                                                                 6.96           9.83          5.02            (29)               96

Return on equity (%)
Return on equity                                                                                                           18.0           27.5          15.4               –                –
Return on tangible equity 1                                                                                                24.5           40.6          26.5               –                –

BIS statistics
Risk-weighted assets (CHF million)                                                                                     312,068       253,676        232,891              23                 9
Tier 1 capital (CHF million)                                                                                            34,737         35,147        26,348              (1)               33
Total capital (CHF million)                                                                                             45,102         46,764        31,918              (4)               47

Tier 1 ratio (%)                                                                                                           11.1           13.9          11.3               –                –
Total capital ratio (%)                                                                                                    14.5           18.4          13.7               –                –

1
  Based on tangible shareholders’ equity, which is calculated by deducting goodwill and other intangible assets from total shareholders’ equity. Management believes that the return on
tangible shareholders’ equity is meaningful as it allows consistent measurement of the performance of businesses without regard to whether the businesses were acquired.
38




     Results summary                                                   Revaluing of certain asset-backed securities
                                                                       positions
     In 2007, net income was CHF 7,760 million, down CHF
     3,567 million, or 31%, against 2006, which included income        As announced on February 19, 2008, in connection with
     from discontinued operations of CHF 3,070 million. Income         ongoing internal control processes, we identified mismarks
     from continuing operations was CHF 7,760 million in 2007,         and pricing errors by a small number of traders in certain ABS
     down CHF 521 million, or 6%, compared to 2006. Private            positions in CDO trading in our structured product business
     Banking achieved record net revenues despite market turbu-        within Investment Banking, and immediately undertook an
     lence and cautious investor behavior in the second half of        internal review of this business.
     2007. Our results in Investment Banking reflected the adverse         As a result of this internal review, which is now complete,
     effects from the turmoil in the mortgage and credit markets,      we recorded total valuation reductions of CHF 2.86 billion
     although our focus on risk management enabled us to perform       (USD 2.65 billion) as a result of revaluing these positions. A
     relatively well. Asset Management was impacted by valuation       significant portion of the reductions reflected adverse market
     reductions on securities purchased from our money market          developments in the first quarter of 2008. These valuation
     funds. Before these valuation reductions, Asset Management        reductions include a CHF 1,177 million reduction in net rev-
     results were strong. Our results also benefited from fair value   enues and a CHF 789 million reduction in net income from the
     gains due to the widening credit spreads on Credit Suisse         amounts we previously reported for the fourth quarter and full-
     debt. Income tax expense benefited from the recognition of        year 2007, and such reductions are reflected in the consoli-
     previously unrecognized deferred tax assets. Our tax rate was     dated financial statements and related discussion of our finan-
     also favorably impacted by normal business-driven tax related     cial condition, results of operations and cash flows and other
     items, including non-taxable income, the streamlining of cer-     information included in this Annual Report.
     tain legal entity structures and the geographic mix of pre-tax        The internal review, commissioned by our Executive Board
     income, which was offset by an increase in the valuation          and assisted by outside counsel, commenced after the release
     allowance on deferred tax assets attributable to lower busi-      of our unaudited 2007 condensed consolidated financial state-
     ness results in certain entities.                                 ments. Based on the results of the internal review and the
         Diluted earnings per share from continuing operations were    conclusions of outside counsel, we have determined that these
     CHF 6.96 compared to CHF 7.19 in 2006. Return on equity           mismarks and pricing errors were, in part, the result of inten-
     was 18.0% compared to 27.5% in 2006, which included               tional misconduct by a small number of traders. These employ-
     income from discontinued operations. Our capital remained         ees have either been terminated or have been suspended and
     strong, with a BIS tier 1 ratio of 11.1% as of the end of 2007,   are in the process of being disciplined under local employment
     compared to 13.9% as of the end of 2006.                          law. The controls we had in place to prevent or detect these




     Credit Suisse reporting structure


      Credit Suisse



      Core Results                                                                                                Minority
                                                                                                                  interests
                                                                                                                  without
                                                                                                                  significant
      Private Banking                            Investment            Asset                Corporate             economic
                                                 Banking               Management           Center                interest

      Wealth                Corporate &
      Management            Retail Banking
                                                                                                                  Operating and financial review              39
                                                                                                                                       Credit Suisse




Credit Suisse and Core Results

                                                                   Core Results            Minority interests without SEI                     Credit Suisse

in                                                2007     2006          2005      2007            2006           2005       2007     2006           2005

Statements of income (CHF million)
Net revenues                                     34,953   34,940       28,415      4,782          3,663           2,074     39,735   38,603       30,489
Provision for credit losses                        240     (111)         (144)        0                 0              0      240     (111)         (144)
Compensation and benefits                        16,103   15,644       13,974       116               53               0    16,219   15,697       13,974
General and administrative expenses               6,850    6,395        7,346        66               50             32      6,916    6,445         7,378
Commission expenses                               2,612    2,272        1,880         0                 0              0     2,612    2,272         1,880
Total other operating expenses                    9,462    8,667        9,226        66               50             32      9,528    8,717         9,258
Total operating expenses                         25,565   24,311       23,200       182              103             32     25,747   24,414       23,232
Income from continuing operations before taxes    9,148   10,740        5,359      4,600           3,560          2,042     13,748   14,300         7,401
Income tax expense                                1,250    2,389          927         0                 0              0     1,250    2,389           927
Minority interests                                 138       70           (94)     4,600          3,560           2,042      4,738    3,630         1,948
Income from continuing operations                 7,760    8,281        4,526         0                 0              0     7,760    8,281         4,526
Income from discontinued operations                  0     3,070        1,310         0                 0              0        0     3,070         1,310
Extraordinary items                                  0      (24)             0        0                 0              0        0      (24)              0
Cumulative effect of accounting changes               –        –            14         –                –              0         –        –             14
Net income                                        7,760   11,327        5,850         0                 0              0     7,760   11,327         5,850

Statement of income metrics (%)
Compensation/revenue ratio                         46.1     44.8          49.2         –                –              –      40.8     40.7          45.8
Non-compensation/revenue ratio                     27.1     24.8          32.5         –                –              –      24.0     22.6          30.4
Cost/income ratio                                  73.1     69.6          81.6         –                –              –      64.8     63.2          76.2
Pre-tax income margin                              26.2     30.7          18.9         –                –              –      34.6     37.0          24.3
Effective tax rate                                 13.7     22.2          17.3         –                –              –       9.1     16.7          12.5
Net income margin from continuing operations       22.2     23.7          15.9         –                –              –      19.5     21.5          14.8
Net income margin                                  22.2     32.4          20.6         –                –              –      19.5     29.3          19.2




mismarks and pricing errors, including the supervision and                     Our Executive Board continues to assign the highest prior-
monitoring of the valuations of these positions by trading and             ity to the prompt remediation of this material weakness and
the related price testing and supervision by product control,              reports regularly on these remediation efforts to the Audit
were not effective. Our price testing of these positions                   Committee and Board of Directors.
included modeling techniques that failed to accurately value                   Notwithstanding the existence of this material weakness in
these positions as of December 31, 2007. As a result, man-                 internal control over financial reporting, we have performed
agement concluded that a material weakness in internal con-                alternative procedures since mid-February 2008, including an
trol over financial reporting existed as of December 31, 2007.             extensive review of the valuations of these positions in our
     In connection with the completion of our internal review,             CDO trading business as of December 31, 2007, led by sen-
we have been actively engaged in the development and imple-                ior personnel. We are confident that as a result of the alterna-
mentation of a remediation plan to address this material weak-             tive procedures performed, our financial statements in this
ness in internal control over financial reporting. We have reas-           Annual Report are fairly presented, in all material respects, in
signed trading responsibility for the CDO trading business and             conformity with US GAAP.
are enhancing related control processes. Our remediation plan                  For further information, refer to V – Consolidated financial
also includes improving the effectiveness of supervisory                   statements – Credit Suisse Group – Controls and procedures
reviews, formalizing escalation procedures, improving the                  and VII – Consolidated financial statements – Credit Suisse
coordination among trading, product control and risk manage-               (Bank) – Controls and procedures.
ment, adding additional resources, improving training and
enhancing the tools and other technical resources available to
our personnel.
40




     Capital and risk trends                                              operating expenses are offset by corresponding amounts
                                                                          reported as minority interests. In addition, our income tax
     Our consolidated BIS tier 1 ratio under Basel I was 11.1% as         expense is not affected by these revenues and expenses.
     of the end of 2007, a decrease from 13.9% as of the end of           These minority interest-related revenues and expenses are
     2006. The decrease was driven primarily by an increase in            reported as “Minority interests without SEI” in the “Credit
     risk-weighted assets. As of the end of 2007, the BIS tier 1          Suisse and Core Results” table above.
     ratio under Basel II would have been approximately 120 basis             Corporate Center includes parent company operations
     points lower.                                                        such as Group financing, expenses for projects sponsored by
          In March 2007, we completed the share buyback program           the Group and certain expenses that have not been allocated
     approved by the shareholders at the Annual General Meeting           to the segments. In addition, Corporate Center includes con-
     (AGM) in 2005. Under this program, we repurchased a total of         solidation and elimination adjustments required to eliminate
     87.8 million common shares in the amount of CHF 6.0 billion,         intercompany revenues and expenses.
     of which 11.4 million common shares in the amount of CHF
     1.0 billion were repurchased during 2007. We cancelled 53.8
     million common shares from this share buyback program,               Allocations and funding
     which did not impact total shareholders’ equity, as the reduc-
     tion in common shares, additional paid-in capital and retained       Revenue sharing and cost allocation
     earnings were offset in full by a reduced balance of treasury        Responsibility for each product is allocated to a segment,
     shares.                                                              which records all related revenues and expenses. Revenue-
          At the AGM in May 2007, the shareholders approved a             sharing and service level agreements govern the compensation
     new share repurchase program of up to CHF 8 billion over a           received by one segment for generating revenue or providing
     maximum of three years. During 2007, we repurchased 46.1             services on behalf of another. These agreements are negoti-
     million common shares in the amount of CHF 3.9 billion under         ated periodically by the relevant segments on a product-by-
     the new share buyback program. As of March 7, 2008, we               product basis. The aim of revenue-sharing and service level
     had repurchased a total of CHF 4.1 billion, or 52%, of the           agreements is to reflect the pricing structure of unrelated
     approved CHF 8.0 billion. As a result of the challenging oper-       third-party transactions. Corporate services and business sup-
     ating environment, we reduced our share buyback activity in          port in finance, operations, including human resources, legal
     the second half of 2007. Our ability to complete the share           and compliance, risk management and information technology
     buyback program in 2008 is dependent on market conditions.           are provided by the Shared Services area. Shared Services
          In 2007, our overall position risk, measured on the basis of    costs are allocated to the segments and Corporate Center
     our economic capital model, decreased 4% compared to                 based on their requirements and other relevant measures.
     2006, mainly driven by reductions in real estate and structured
     assets and fixed income trading exposures partly offset by           Funding
     increased international lending and counterparty, equity trading     Credit Suisse centrally manages its funding activities. New
     and investments and emerging markets exposures. Average              securities for funding and capital purposes are issued primarily
     Value-at-Risk (VaR) for our trading books increased to CHF           by the Bank. The Bank lends these funds to its operating sub-
     115 million, primarily reflecting the increased market volatility.   sidiaries and affiliates on both a senior and subordinated basis,
          For further information on capital and risk trends, refer to    as needed, the latter typically to meet capital requirements, or
     III – Balance sheet, Off-balance sheet, Treasury and Risk.           as desired by management to support business initiatives.
                                                                          Capital is distributed to the segments considering factors such
                                                                          as regulatory capital requirements, utilized economic capital
     Core Results                                                         and the historic and future potential return on capital. Transfer
                                                                          pricing, using market rates, is used to record interest income
     Core Results include the results of our three segments and           and expense in each of the segments for this capital and fund-
     the Corporate Center. Credit Suisse’s results also include rev-      ing. Included in this allocation are gains and losses recorded
     enues and expenses from the consolidation of certain private         on the fair value of our own debt.
     equity funds and other entities in which we do not have a sig-
     nificant economic interest (SEI) in such revenues and
     expenses. The consolidation of these entities does not affect
     net income as the amounts recorded in net revenues and total
                                                                                                                                 Operating and financial review                       41
                                                                                                                                                              Credit Suisse




Differences between Group and Bank                                                        BANK-now was a subsidiary of the Bank and accordingly its
                                                                                          results of operations through the end of 2006 were included in
Except where noted, the business of the Bank is substantially                             the Bank’s consolidated statements of income. Core Results
the same as the business of Credit Suisse Group, and sub-                                 also includes certain Group corporate center activities that are
stantially all of the Bank’s operations are conducted through                             not applicable to the Bank.
the Private Banking, Investment Banking and Asset Manage-                                     These operations and activities vary from period to period
ment segments. These segment results are included in Core                                 and give rise to differences between the Bank’s consolidated
Results. Certain other assets, liabilities and results of opera-                          assets, liabilities, revenues and expenses, including pensions
tions are managed as part of the activities of the three seg-                             and taxes, and those of the Group. For further information on
ments, however, since they are legally owned by the Group,                                the Bank refer to Note 39 – Supplementary subsidiary guaran-
they are not included in the Bank’s consolidated financial                                tee information in V – Consolidated financial statements –
statements. In 2007, these related principally to the activities                          Credit Suisse Group and VII – Consolidated financial state-
of Clariden Leu, Neue Aargauer Bank and BANK-now, which                                   ments – Credit Suisse (Bank).
are managed as part of Private Banking. Prior to 2007,



Differences between Group and Bank businesses

Entity                                                                                                                                                 Principal business activity
Clariden Leu 1                                                                                                                                          Banking and securities
Neue Aargauer Bank                                                                                                                  Banking (in the Swiss canton of Aargau)
BANK-now 2                                                                                                                     Private credit and car leasing (in Switzerland)
                                                                                                      Special purpose vehicles for various funding activities of the Group,
Financing vehicles of the Group                                                                                     including for purposes of raising consolidated capital

1
 Formed as of January 1, 2007 by the merger of the private banks Clariden Bank, Bank Leu, Bank Hofmann and BGP Banca di Gestione Patrimoniale, and the securities dealer Credit
Suisse Fides. 2 Formed as of January 3, 2007 as a subsidiary of Credit Suisse Group. The operations comprising BANK-now were previously recorded in the Bank.




Comparison of consolidated statements of income

                                                                                                                                Group                                       Bank

in                                                                                                    2007         2006          2005          2007           2006          2005

Statements of income (CHF million)
Net revenues                                                                                       39,735        38,603        30,489        37,304        36,612         29,131
Total operating expenses                                                                           25,747        24,414        23,232        24,904        23,908         22,979
Income from continuing operations before taxes, minority interests,
extraordinary items and cumulative effect of accounting changes                                    13,748        14,300          7,401       12,173        12,801          6,286
Income tax expense                                                                                   1,250         2,389           927          846          2,137           659
Minority interests                                                                                   4,738         3,630        1,948         5,013          3,620         2,064
Income from continuing operations before extraordinary items
and cumulative effect of accounting changes                                                          7,760         8,281         4,526        6,314          7,044         3,563
Income from discontinued operations, net of tax                                                           0        3,070        1,310              0              0               0
Extraordinary items, net of tax                                                                           0          (24)            0             0           (24)               0
Cumulative effect of accounting changes, net of tax                                                       –             –           14             –              –            12
Net income                                                                                           7,760       11,327         5,850         6,314          7,020         3,575
42




     Comparison of consolidated balance sheets

                                                                                                                                                     Group               Bank

     end of                                                                                                                            2007          2006      2007      2006

     Balance sheet statistics (CHF million)
     Total assets                                                                                                                1,360,680 1,255,956 1,333,742 1,226,764
     Total liabilities                                                                                                           1,317,481 1,212,370 1,302,408 1,200,719




     Capitalization

                                                                                                                                                     Group               Bank

     end of                                                                                                                            2007          2006      2007      2006

     Capitalization (CHF million)
     Due to banks                                                                                                                    90,864         97,514   106,979   104,724
     Customer deposits                                                                                                              335,505        290,864   307,598   280,200
     Central bank funds purchased, securities sold under
     repurchase agreements and securities lending transactions                                                                      300,381        288,444   300,476   288,442
     Long-term debt                                                                                                                 160,157        147,832   157,282   144,021
     Other liabilities                                                                                                              430,574        387,716   430,073   383,332
     Total liabilities                                                                                                           1,317,481 1,212,370 1,302,408 1,200,719
     Total shareholder’s equity                                                                                                      43,199         43,586    31,334    26,045
     Total capitalization                                                                                                        1,360,680 1,255,956 1,333,742 1,226,764




     Capital adequacy

                                                                                                                                                     Group               Bank

     end of                                                                                                                            2007          2006      2007      2006

     Capital (CHF million)
     Tier 1 capital                                                                                                                  34,737         35,147    32,254    26,600
       of which non-cumulative perpetual preferred securities                                                                          4,136         2,167     3,514     1,065
     Total BIS regulatory capital                                                                                                    45,102         46,764    44,318    38,441

     Capital ratios (%)
     Tier 1 ratio                                                                                                                       11.1          13.9      11.0      11.4
     Total capital ratio                                                                                                                14.5          18.4      15.1      16.5




     Dividends of the Bank to Credit Suisse Group

     end of                                                                                                                                                    2007      2006

     Per share issued (CHF)
     Dividend                                                                                                                                                  59.10      0.23
     Net income                                                                                                                                                82.40     83.80

     Registered shares of CHF 100.00 nominal value each. As of December 31, 2007, total share capital consisted of 43,996,652 registered shares.
                                                                                                                                      Operating and financial review                          43
                                                                                                                                                                      Core Results




Core Results
For 2007, income from continuing operations was CHF 7,760 million. Private Banking results were strong with
profitable growth throughout 2007. In Investment Banking, we performed relatively well, but results reflected
valuation reductions from the turmoil in the mortgage and credit markets. Asset Management was adversely
impacted by valuation reductions from securities purchased from our money market funds. Before these
valuation reductions, Asset Management results were strong.




Results

                                                                                                                                                          in                  % change

                                                                                                                         2007          2006          2005          07 / 06     06 / 05

Statements of income (CHF million)
Net interest income                                                                                                     8,314         6,408          6,890             30            (7)
Commissions and fees                                                                                                  19,360         17,754         14,373              9            24
Trading revenues                                                                                                        6,148         9,375          5,623            (34)           67
Other revenues                                                                                                          1,131         1,403          1,529            (19)           (8)
Net revenues 1, 2                                                                                                     34,953         34,940         28,415              –            23
Provision for credit losses                                                                                               240          (111)         (144)              –           (23)
Compensation and benefits                                                                                             16,103         15,644         13,974              3            12
                                                                                                                                                3              4
General and administrative expenses                                                                                     6,850         6,395          7,346              7           (13)
Commission expenses                                                                                                     2,612         2,272          1,880             15            21
Total other operating expenses                                                                                          9,462         8,667          9,226              9            (6)
Total operating expenses                                                                                              25,565         24,311         23,200              5                 5
Income from continuing operations before taxes                                                                          9,148        10,740          5,359            (15)          100
Income tax expense                                                                                                      1,250         2,389            927            (48)          158
Minority interests                                                                                                        138             70           (94)            97                 –
Income from continuing operations                                                                                       7,760         8,281          4,526             (6)           83
Income from discontinued operations                                                                                          0        3,070          1,310           (100)          134
Extraordinary items                                                                                                          0          (24)              0           100                 –
Cumulative effect of accounting changes                                                                                      –              –           14              –                 –
Net income                                                                                                              7,760        11,327          5,850            (31)           94

Statement of income metrics (%)
Compensation/revenue ratio                                                                                               46.1           44.8          49.2              –                 –
Non-compensation/revenue ratio                                                                                           27.1           24.8          32.5              –                 –
Cost/income ratio                                                                                                        73.1           69.6          81.6              –                 –
Pre-tax income margin                                                                                                    26.2           30.7          18.9              –                 –
Effective tax rate                                                                                                       13.7           22.2          17.3              –                 –
Net income margin from continuing operations                                                                             22.2           23.7          15.9              –                 –
Net income margin                                                                                                        22.2           32.4          20.6              –                 –

Number of employees (full-time equivalents)
Number of employees                                                                                                   48,100         44,900         44,600              7                 1

1
 Includes valuation reductions in Asset Management of CHF 920 million in 2007 from securities purchased from our money market funds. 2 Includes valuation reductions in Investment
Banking of CHF 3,187 million in 2007 relating to leveraged finance and structured products. 3 Includes CHF 508 million of credits from insurance settlements for litigation and related
costs in Investment Banking. 4 Includes CHF 960 million charge to increase the reserve for certain private litigation matters in Investment Banking.
44




     Results summary                                                      Results detail

     Net income in 2007 was CHF 7,760 million, down CHF 3,567             The following provides a comparison of our 2007 results ver-
     million, or 31%, compared to 2006, which included income             sus 2006 and 2006 results versus 2005.
     from discontinued operations of CHF 3,070 million. In 2007,
     income from continuing operations was CHF 7,760 million,             Net revenues
     down CHF 521 million, or 6%, against 2006. Net revenues              In managing the business, revenues are evaluated in the
     were flat at CHF 34,953 million. Total operating expenses            aggregate, including an assessment of trading gains and
     were CHF 25,565 million, up CHF 1,254 million, or 5%.                losses and the related interest income and expense from
          Our Core Results for 2007 reflected strong performance in       financing and hedging positions. For this reason, individual
     the first half of the year, which benefited from overall favorable   revenue categories may not be indicative of performance.
     markets, but were impacted by the turmoil in the mortgage
     and credit markets during the second half of 2007, which             2007 vs 2006: From CHF 34,940 million to CHF 34,953 million
     emerged from the dislocation of the US subprime mortgage             The slight increase reflected a strong performance in Private
     market. Private Banking continued its profitable growth, with        Banking, offset by lower results driven by valuation reductions
     record income from continuing operations and net revenues. In        on the structured products and leveraged finance businesses
     Investment Banking, our equity and advisory businesses per-          in Investment Banking and on securities purchased from our
     formed well, but our fixed income businesses were affected           money market funds in Asset Management. Net revenues
     by weaker revenues including significant valuation reductions        benefited from lower funding costs, including fair value gains
     on structured products and leveraged loan commitments.               due to the widening of credit spreads on Credit Suisse debt.
     Asset Management was impacted by significant valuation                   In Private Banking, net revenues were strong despite
     reductions on securities purchased from our money market             ongoing market turbulence and cautious investor behavior. Net
     funds, but results were strong before these valuation reduc-         interest income increased, benefiting mainly from lower fund-
     tions.                                                               ing costs and higher liability volumes and margins, offset in
          Our results also included fair value gains on Credit Suisse     part by decreased asset margins due to ongoing competitive
     debt, substantially all of which were recorded in Investment         pressure. Total non-interest income increased mainly as a
     Banking. Total operating expenses increased mainly due to            result of higher commissions and fees, particularly from recur-
     higher performance-related compensation, partly offset by an         ring revenues from managed investment products and per-
     increase in deferred share-based compensation for 2007.              formance-based fees from Hedging-Griffo at Wealth Manage-
     Income tax expense benefited from the recognition of previ-          ment and minority interests of a consolidated joint venture in
     ously unrecognized deferred tax assets. Our tax rate was also        our Corporate & Retail Banking business.
     favorably impacted by normal business-driven tax related                 In Investment Banking, our equity and advisory businesses
     items, including non-taxable income, the streamlining of cer-        performed well, but our fixed income businesses were affected
     tain legal entity structures and the geographic mix of pre-tax       by weaker revenues including valuation reductions on struc-
     income, which was offset by an increase in the valuation             tured products and leveraged loan commitments. Valuation
     allowance on deferred tax assets attributable to lower busi-         reductions on our structured products and leveraged finance
     ness results in certain entities. We had net new asset inflows       businesses were CHF 3,187 million in 2007. These valuation
     of CHF 50.4 billion, mostly reflecting inflows of CHF 50.2 bil-      reductions include the revaluing of certain ABS positions in our
     lion in Wealth Management.                                           CDO trading business. Fixed income trading revenues were
          Overall, our performance in 2007 demonstrated the bene-         significantly lower compared to 2006, reflecting significant
     fit of our diversified business mix in a more demanding operat-      valuation reductions, partly offset by strong performances in
     ing environment.                                                     the interest rate products, fixed income proprietary trading and
                                                                          foreign exchange businesses. Equity trading benefited from
                                                                          strong performances in our global cash, prime services and
                                                                          derivative businesses. Fixed income and equity trading also
                                                                          benefited from fair value gains of CHF 1,111 million on Credit
                                                                          Suisse debt. Our advisory and equity underwriting businesses
                                                                          had higher revenues compared to 2006.
                                                                                                   Operating and financial review         45
                                                                                                                           Core Results




     In Asset Management, net revenues were down, mainly             2006 vs 2005: Up 12% from CHF 13,974 million to CHF 15,644 million
reflecting valuation reductions of CHF 920 million from secu-        The increase was due primarily to higher performance-related
rities purchased from our money market funds. Before these           compensation in Investment Banking and Private Banking
valuation reductions, net revenues showed continued growth.          reflecting improved results. Compensation expenses in 2005
Asset management and administrative fees were strong,                included CHF 630 million, recorded in Corporate Center, relat-
reflecting growth in average assets under management during          ing to a change in accounting for share-based compensation
2007, particularly in alternative investments and balanced           awards.
assets. Performance-based fees increased significantly, pri-
marily from Hedging-Griffo. Private equity revenues increased,       General and administrative expenses
reflecting the strength of our private equity franchise and          2007 vs 2006: Up 7% from CHF 6,395 million to CHF 6,850 million
lower funding costs. Private equity and other investment-            The increase was primarily due to credits from insurance set-
related gains increased, primarily due to fair value gains on our    tlements of CHF 508 million in Investment Banking. This
investments.                                                         increase was partially offset by realignment costs of CHF 172
2006 vs 2005: Up 23% from CHF 28,415 million to CHF 34,940 million   million in Asset Management in 2006. Excluding these credits
In Private Banking, net revenues increased mainly due to the         from insurance settlements and realignment costs, general
higher commissions and fees driven by higher asset-based             and administrative expenses increased CHF 119 million, or
fees related to the higher level of assets under management          2%, reflecting increased professional fees but lower costs
and higher transaction-based fees reflecting the stronger            across other expense categories. Professional fees increased,
client activity. In addition, net interest income increased, pri-    reflecting the international expansion and marketing and sales
marily driven by higher liability volumes and margins.               activities in Wealth Management and delayed or cancelled
    In Investment Banking, net revenues increased driven by          transactions in Investment Banking due to market conditions in
significantly higher fixed income and equity trading results.        the second half of 2007. Asset Management expenses were
    In Asset Management, net revenues were slightly higher,          down primarily due to realignment costs incurred in 2006.
mainly reflecting increased assets under management partly           2006 vs 2005: Down 13% from CHF 7,346 million to CHF 6,395 million
offset by lower private equity and other investment-related          General and administrative expenses included credits from
gains.                                                               insurance settlements for litigation and related costs of CHF
                                                                     508 million in 2006 and the reserve for certain private litiga-
Provision for credit losses                                          tion matters of CHF 960 million in 2005. In addition, in 2006,
2007 vs 2006: From CHF (111) million to CHF 240 million              realignment costs of CHF 172 million were recognized in
The increase was due primarily to higher provisions relating to      Asset Management. Excluding these items, general and
a guarantee provided in a prior year to a third-party bank by        administrative expenses increased CHF 345 million, or 5%,
Investment Banking and fewer releases of provisions.                 primarily from increased travel and entertainment, occupancy
2006 vs 2005: From CHF (144) million to CHF (111) million            costs and professional fees.
With the favorable credit environment, we benefited from net
releases in 2006.                                                    Commission expenses
                                                                     2007 vs 2006: Up 15% from CHF 2,272 million to CHF 2,612 million
Operating expenses                                                   The increase primarily reflected increased trading and busi-
Compensation and benefits                                            ness volumes.
2007 vs 2006: Up 3% from CHF 15,644 million to CHF 16,103 million    2006 vs 2005: Up 21% from CHF 1,880 million to CHF 2,272 million
The increase was due primarily to higher performance-related         The increase primarily reflected increased trading and busi-
compensation and increased deferred compensation expense             ness volumes.
from prior-year share awards. Performance-related compen-
sation reflected an increase in deferred share-based compen-
sation for 2007. Salaries and benefits increased reflecting the
higher headcount.
46




     Tax                                                                  Personnel
     2007 vs 2006: Down 48% from CHF 2,389 million to CHF 1,250 million   The number of employees increased by approximately 3,200
     The effective tax rate was 13.7% in 2007 compared to 22.2%           full-time equivalents compared to the end of 2006. The
     in 2006. The reduction in the effective tax rate was due to the      increase was driven primarily by recruitment in Investment
     recognition of previously unrecognized deferred tax assets of        Banking and additional relationship managers in targeted mar-
     CHF 512 million. Our tax rate was also favorably impacted by         kets of Wealth Management. In late 2007 and continuing in
     normal business-driven tax related items, including non-tax-         2008, we selectively reduced headcount in certain Investment
     able income, the streamlining of certain legal entity structures     Banking businesses to reflect market conditions. For addi-
     and the geographic mix of pre-tax income, which was offset by        tional information on personnel, refer to IV – Corporate gover-
     an increase in the valuation allowance on deferred tax assets        nance.
     of CHF 690 million attributable to lower business results in
     certain entities.
     2006 vs 2005: Up 158% from CHF 927 million to CHF 2,389 million
     The effective tax rate was 22.2% in 2006 compared to 17.3%
     in 2005. The lower rate in 2005 mainly reflected the impact of
     the change in our accounting for share-based compensation
     awards.
                                                                                              Operating and financial review         47
                                                                                                     Key performance indicators




Key performance indicators
To benchmark our achievements, we have defined a set of integrated bank key performance indicators (KPI)
for which we have targets to be achieved over a three to five year period across market cycles. Although
market conditions have been challenging, we continue to be optimistic in achieving our targets over the longer
term.




Performance                                                        Efficiency

For return on equity, we target an annual rate of return of        We targeted efficiency improvements within a top quartile per-
above 20%. In 2007, our return on equity was 18.0%.                formance compared to the industry. Our Core Results
   For total shareholder return, we target superior share price    cost/income ratio was 73.1% for 2007.
appreciation plus dividends compared to our peer group. For           In 2008, we announced a target for our Core Results
2007, total shareholder return was (17.8)%.                        cost/income ratio of 65% by 2010.



Growth                                                             Capital strength

For earnings per share, we target a double-digit annual per-       For the BIS tier 1 ratio, we targeted a minimum level of 10%.
centage growth. Diluted earnings per share growth from con-        The BIS tier 1 ratio under Basel I was 11.1% as of the end of
tinuing operations was (3.2)% in 2007.                             2007. As of the end of 2007, the BIS tier 1 ratio under Basel
     For net new assets, we target a growth rate above 6%. In      II would have been approximately 120 basis points lower. For
2007, we had a net new asset growth rate of 3.4%.                  the BIS tier 1 ratio under Basel II, we target a minimum level
     In 2008, we announced a target for integrated bank col-       of 10%.
laboration revenues in excess of CHF 10 billion by 2010. For
2007, integrated bank collaboration revenues were CHF 5.9
billion.



in / end of                                                                                              2007      2006     2005

Performance (%)
Return on equity                                                                                         18.0      27.5      15.4

Total shareholder return                                                                                (17.8)     30.5      44.2

Growth
Diluted earnings per share growth from continuing operations (%)                                         (3.2)     84.4      (7.8)

Net new asset growth (%)                                                                                  3.4       7.2       5.4

Collaboration revenues (CHF billion)                                                                      5.9       4.9         –

Efficiency (%)
Core Results cost/income ratio                                                                           73.1      69.6      81.6

Capital strength (%)
Basel I BIS tier 1 ratio                                                                                 11.1      13.9      11.3
48




     Private Banking
     In 2007, we achieved record net revenues despite market turbulence and cautious investor behavior during the
     second half of the year. Income from continuing operations before taxes was a record CHF 5,486 million, up
     CHF 890 million, or 19%, from 2006.




     Results

                                                                                                          in / end of             % change

                                                                                        2007      2006        2005      07 / 06   06 / 05

     Statements of income (CHF million)
     Net revenues                                                                      13,522    11,678     10,495          16         11
     Provision for credit losses                                                         (59)      (73)        (71)        (19)         3
     Compensation and benefits                                                          4,529     4,038       3,588         12         13
     General and administrative expenses                                                2,670     2,382       2,325         12          2
     Commission expenses                                                                 896       735          687         22          7
     Total other operating expenses                                                     3,566     3,117       3,012         14          3
     Total operating expenses                                                           8,095     7,155       6,600         13          8
     Income from continuing operations before taxes                                     5,486     4,596       3,966         19         16

     Statement of income metrics (%)
     Compensation/revenue ratio                                                          33.5      34.6        34.2          –          –
     Non-compensation/revenue ratio                                                      26.4      26.7        28.7          –          –
     Cost/income ratio                                                                   59.9      61.3        62.9          –          –
     Pre-tax income margin                                                               40.6      39.4        37.8          –          –

     Utilized economic capital and return
     Average utilized economic capital (CHF million)                                    4,668     5,172       5,572        (10)        (7)
     Pre-tax return on average utilized economic capital (%) 1                          118.4      90.4        72.3          –          –

     Net revenue detail (CHF million)
     Net interest income                                                                4,788     4,095       3,716         17         10
     Total non-interest income                                                          8,734     7,583       6,779         15         12
     Net revenues                                                                      13,522    11,678     10,495          16         11

     Balance sheet statistics (CHF million)
     Total assets                                                                     376,800   340,741   298,117           11         14
     Net loans                                                                        175,506   163,670   158,147            7          3
     Goodwill                                                                            975       791          793         23          0

     Number of employees (full-time equivalents)
     Number of employees                                                               23,200    22,200            –         5          –

     1
         Calculated using a return excluding interest costs for allocated goodwill.
                                                                                                Operating and financial review         49
                                                                                                                   Private Banking




Results summary                                                    higher commission expenses, higher marketing and sales
                                                                   activities and expenses related to the minority interests of the
During 2007, we faced a challenging operating environment          consolidated joint venture.
during the second half of the year, characterized by market            Assets under management as of the end of 2007 were
volatility and cautious investor behavior. However, we contin-     CHF 995.4 billion, CHF 55.1 billion, or 5.9%, higher than at
ued to make progress in executing several growth initiatives to    the end of 2006, reflecting the asset gathering during the
strengthen the global franchise, including the completion of       year, positive market performance and the Hedging-Griffo
the acquisition of Hedging-Griffo as of November 1, 2007.          acquisition, offset in part by negative foreign exchange-related
We built up teams in our key markets, enhanced our operating       movements and corporate cash now reported only in client
platform and fostered product innovation.                          assets. Net new assets were CHF 53.5 billion for 2007, com-
    Income from continuing operations before taxes was a           pared to CHF 52.2 billion for 2006, with Wealth Management
record CHF 5,486 million, up CHF 890 million, or 19%, com-         contributing CHF 50.2 billion and Corporate & Retail Banking
pared to 2006. Net revenues were also a record CHF 13,522          contributing CHF 3.3 billion.
million, up CHF 1,844 million, or 16%. Net interest income             In 2006, income from continuing operations before taxes
increased, benefiting mainly from lower funding costs and          increased to CHF 4,596 million, or 16%, compared to 2005.
higher liability volumes and margins, offset in part by decreas-   Net revenues were CHF 11,678 million, up 11%. Net interest
ing asset margins, still faced with ongoing competitive pres-      income increased 10%, primarily reflecting higher liability vol-
sure. Total non-interest income increased mainly as a result of    umes and margins. Total non-interest income increased mainly
higher commissions and fees, particularly recurring revenues       as a result of higher commissions and fees, driven by higher
from managed investment products in Wealth Management              asset-based fees related to the higher level of assets under
and minority interests of a consolidated joint venture in our      management and higher transaction-based fees reflecting the
Corporate & Retail Banking business. Provision for credit          stronger client activity. Provision for credit losses resulted in
losses resulted in net releases of CHF 59 million, compared to     net releases of CHF 73 million, compared to net releases of
net releases of CHF 73 million in 2006. Total operating            CHF 71 million in 2005. Total operating expenses were CHF
expenses were CHF 8,095 million, up CHF 940 million, or            7,155 million, up 8%, compared to 2005, mainly driven by
13%, compared to 2006. This increase was mainly driven by          higher performance-related compensation reflecting the better
higher personnel and business costs associated with the inter-     results and increased personnel costs associated with the
national expansion of our Wealth Management business,              international expansion of our Wealth Management business.
50




     Wealth Management
     During 2007, we continued to profitably grow our business and strengthen our franchise in key markets.
     Despite the challenging operating environment, we achieved record net revenues and net new assets were
     CHF 50.2 billion. For 2007, income from continuing operations before taxes was also a record CHF 3,865
     million, up CHF 628 million, or 19%, from 2006.




     Results

                                                                                                          in / end of             % change

                                                                                        2007      2006        2005      07 / 06   06 / 05

     Statements of income (CHF million)
     Net revenues                                                                       9,583     8,181       7,125         17         15
     Provision for credit losses                                                           3       (19)          25          –          –
     Compensation and benefits                                                          3,177     2,780       2,367         14         17
     General and administrative expenses                                                1,770     1,571       1,493         13          5
     Commission expenses                                                                 768       612          579         25          6
     Total other operating expenses                                                     2,538     2,183       2,072         16          5
     Total operating expenses                                                           5,715     4,963       4,439         15         12
     Income from continuing operations before taxes                                     3,865     3,237       2,661         19         22

     Statement of income metrics (%)
     Compensation/revenue ratio                                                          33.2      34.0        33.2          –          –
     Non-compensation/revenue ratio                                                      26.5      26.7        29.1          –          –
     Cost/income ratio                                                                   59.6      60.7        62.3          –          –
     Pre-tax income margin                                                               40.3      39.6        37.3          –          –

     Utilized economic capital and return
     Average utilized economic capital (CHF million)                                    1,592     1,709       1,912         (7)       (11)
     Pre-tax return on average utilized economic capital (%) 1                          245.2     193.9       142.4          –          –

     Balance sheet statistics (CHF million)
     Total assets                                                                     268,871   229,731   183,213           17         25
     Net loans                                                                         76,265    69,156     65,580          10          5
     Goodwill                                                                            794       610          613         30          0

     Number of employees (full-time equivalents)
     Number of employees                                                               14,300    13,400            –         7          –

     Number of relationship managers
     Number of relationship managers                                                    3,140     2,820       2,710         11          4

     1
         Calculated using a return excluding interest costs for allocated goodwill.
                                                                                                Operating and financial review             51
                                                                                                                      Private Banking




Results (continued)

                                                                                                        in / end of             % change

                                                                                      2007      2006        2005      07 / 06   06 / 05

Net revenue detail (CHF million)
Net interest income                                                                   2,446     1,916       1,625         28         18
Total non-interest income                                                             7,137     6,265       5,500         14         14
Net revenues                                                                          9,583     8,181       7,125         17         15

Net revenue detail (CHF million)
Recurring                                                                             6,395     5,193       4,590         23         13
Transaction-based                                                                     3,188     2,988       2,535          7         18
Net revenues                                                                          9,583     8,181       7,125         17         15

Gross and net margin on assets under management (bp)
Recurring                                                                               77        71           73          –          –
Transaction-based                                                                       38        41           40          –          –
Gross margin                                                                           115       112          113          –          –

Net margin (pre-tax)                                                                    47        44           42          –          –




Operating environment                                               Results summary

Our operating environment during 2007 reflected weaker              In 2007, income from continuing operations before taxes was
client activity compared to 2006. The second half of the year       a record CHF 3,865 million, up CHF 628 million, or 19%,
proved more challenging due to significant market volatility and    compared to 2006. Net revenues were a record CHF 9,583
increased investor caution resulting from turmoil in the credit     million, up CHF 1,402 million, or 17%, driven by an improve-
markets. Increased risk aversion drove client activity. Investors   ment in recurring revenues. Recurring revenues, which repre-
sought to rebalance their portfolios by reducing their alloca-      sented 67% of net revenues, increased CHF 1,202 million, or
tions to higher risk assets. Shifts were most notably from equi-    23%, reflecting higher net interest income, mainly from lower
ties into fixed income and money market products as equity          funding costs and higher liability volumes and margins, as well
markets were volatile, particularly in the second half of 2007.     as higher commissions and fees, particularly from managed
The further weakening of the US dollar against the Swiss            investment products and performance-based fees. Transac-
franc created additional instability.                               tion-based revenues increased CHF 200 million, or 7%,
    However, the overall sound global economy provided              mainly due to higher brokerage fees, client foreign exchange
opportunities for our clients. During the end of 2007, growth       and product issuing fees. Total operating expenses were CHF
in the mature US and European economies started to slow             5,715 million, up CHF 752 million, or 15%. The 14% increase
down, but growth in the emerging markets continued and              in compensation and benefits was mainly due to the ongoing
helped to mitigate the economic deceleration.                       strategic investment in the global franchise and higher per-
    Sales volumes of investment products were above 2006,           formance-related compensation. The 16% growth in total
with increases particularly in funds, while demand for struc-       other operating expenses was driven by higher infrastructure
tured products remained stable, with growth adversely               and business costs related to international expansion in our
impacted by the market conditions during the second half of         key markets, commission expenses and higher marketing and
2007. Our business environment remained healthy on a global         sales activities.
level, benefiting from the continued growth in the number of            Assets under management as of the end of 2007 were
high-net-worth clients, particularly in Europe and Asia.            CHF 838.6 billion, up CHF 54.4 billion, or 6.9%, from 2006,
                                                                    reflecting the asset gathering during the year, positive market
                                                                    performance and the Hedging-Griffo acquisition, offset in part
                                                                    by negative foreign exchange-related movements and corpo-
52




     rate cash now reported only in client assets. Net new assets    2006. The slower growth in net new assets reflected the sta-
     were CHF 50.2 billion in 2007, with strong contributions from   ble net new assets, compared to the strong growth in assets
     Asia, Europe and the Middle East.                               under management and our focus on profitable growth.

                                                                     Gross margin
     Performance indicators                                          Our gross margin in 2007 was 115 basis points, compared to
                                                                     112 basis points in 2006. In 2007, the recurring margin
     Pre-tax income margin (KPI)                                     increased by six basis points, compared to 2006. This
     Our target over market cycles is a pre-tax income margin        improvement was mainly due to higher net interest income,
     above 40%. In 2007, the pre-tax income margin was 40.3%,        particularly from lower funding costs and higher commissions
     up 0.7 percentage points from 2006.                             and fees. The transaction-based margin decreased three basis
                                                                     points, reflecting a greater increase in average assets under
     Net new asset growth rate (KPI)                                 management than the increase in transaction-based revenues.
     Our target over market cycles is a growth rate over 6%. We
     achieved a growth rate of 6.4% in 2007, compared to 7.3% in
                                                                     Results detail

                                                                     The following provides a comparison of our 2007 results ver-
     Pre-tax income margin                                           sus 2006 and 2006 results versus 2005.


     in %                                                            Net revenues
     50
                                                                     Recurring
                                                                     Recurring revenues arise from recurring net interest income,
     40                                                              commissions and fees, including performance-based fees,
                                                                     related to assets under management and custody assets, as
     30                                                              well as fees for general banking products and services.
                                                                     2007 vs 2006: Up 23% from CHF 5,193 million to CHF 6,395 million
     20
                                                                     The increase was driven by higher net interest income, mostly
                                                                     from lower funding costs and higher liability volumes and mar-
     10
                                                                     gins, and higher commissions and fees, mainly from managed
      0                                                              investment products and performance-based fees from Hedg-
                 2005               2006              2007           ing-Griffo.
                                                                     2006 vs 2005: Up 13% from CHF 4,590 million to CHF 5,193 million
                                                                     The increase was due mainly to higher commissions and fees,
                                                                     due to the strong growth in assets under management, and
     Net new asset growth                                            higher net interest income, mainly driven by higher liability vol-
                                                                     umes and margins.
     in %

     10                                                              Transaction-based
                                                                     Transaction-based revenues arise primarily from brokerage
      8                                                              fees, product issuing fees, client foreign exchange income and
                                                                     other transaction-based income.
      6                                                              2007 vs 2006: Up 7% from CHF 2,988 million to CHF 3,188 million
                                                                     The increase was mainly driven by higher brokerage fees,
      4
                                                                     client foreign exchange and product issuing fees, partly offset
      2
                                                                     by lower revenues in the US due to the market dislocation in
                                                                     the second half of 2007.
      0                                                              2006 vs 2005: Up 18% from CHF 2,535 million to CHF 2,988 million
                 2005               2006              2007           The increase was mainly due to higher brokerage and product
                                                                     issuing fees, reflecting stronger client activity.
                                                                                                                                        Operating and financial review              53
                                                                                                                                                               Private Banking




Assets under management

                                                                                                                                                 in / end of             % change

                                                                                                                           2007         2006         2005      07 / 06   06 / 05

Assets under management (CHF billion)
Assets under management                                                                                                   838.6         784.2        693.3         6.9      13.1
    of which discretionary assets                                                                                         182.7         177.6        161.3         2.9      10.1
    of which advisory assets                                                                                              655.9         606.6        532.0         8.1      14.0

Growth in assets under management (CHF billion)
Net new assets                                                                                                              50.2         50.5         42.8          –          –
Acquisitions and divestitures                                                                                               14.1          0.0             –         –          –
Market movements and investment performance                                                                                 38.1         51.1             –         –          –
Currency                                                                                                                  (23.1)         (9.5)            –         –          –
                                                                                                                                    1
Other                                                                                                                     (24.9)         (1.2)            –         –          –
Total other effects                                                                                                          4.2         40.4         82.7          –          –
Growth in assets under management                                                                                           54.4         90.9        125.5          –          –

Growth in assets under management (%)
Net new assets                                                                                                               6.4          7.3           7.5         –          –
                                                                                                                                    1
Total other effects                                                                                                          0.5          5.8         14.6          –          –
Growth in assets under management                                                                                            6.9         13.1         22.1          –          –

1
    The reduction in assets under management also reflects CHF 21.6 billion of corporate cash now reported only in client assets.




Provision for credit losses                                                                     General and administrative expenses
2007 vs 2006: From CHF (19) million to CHF 3 million                                            2007 vs 2006: Up 13% from CHF 1,571 million to CHF 1,770 million
Provision for credit losses reflected a low level of net provi-                                 The increase mainly reflected higher front- and back-office
sions. 2006 included releases from the resolution of a single                                   infrastructure costs due to the international expansion and
exposure.                                                                                       higher marketing and sales activities.
2006 vs 2005: From CHF 25 million to CHF (19) million                                           2006 vs 2005: Up 5% from CHF 1,493 million to CHF 1,571 million
2006 benefited from net releases, mainly due to the resolution                                  The increase was mainly related to costs associated with the
of a single exposure.                                                                           business growth in our international locations and higher non-
                                                                                                credit-related provisions.
Operating expenses
Compensation and benefits                                                                       Commission expenses
2007 vs 2006: Up 14% from CHF 2,780 million to CHF 3,177 million                                2007 vs 2006: Up 25% from CHF 612 million to CHF 768 million
The increase mainly reflected growth in headcount, particularly                                 The increase was related to higher commission and fee rev-
strategic hiring made in the front office, higher salaries and                                  enues and business volumes.
related benefits as well as higher performance-related com-                                     2006 vs 2005: Up 6% from CHF 579 million to CHF 612 million
pensation, including higher deferred compensation expense                                       The increase was related to higher commission and fee rev-
from prior-year share awards. Performance-related compen-                                       enues.
sation reflected an increase in deferred share-based compen-
sation for 2007.                                                                                Personnel
2006 vs 2005: Up 17% from CHF 2,367 million to CHF 2,780 million                                During 2007, we strengthened our teams mainly in Asia, Latin
The increase in costs primarily reflected higher personnel                                      America, Europe and the Middle East. As of the end of 2007,
costs primarily from strategic hiring in the front office and                                   we had 3,140 relationship managers, an increase of 320 since
higher salaries and benefits, as well as higher performance-                                    2006, driven mainly by Europe and Asia. Since 2005, the
related compensation expenses reflecting the improved                                           number of relationship managers increased by 430, primarily
results.                                                                                        in Europe, Asia and the Americas.
54




     Corporate & Retail Banking
     The robust economic environment in Switzerland during 2007 provided a stable environment to further grow
     our business. We achieved record net revenues and record income from continuing operations before taxes of
     CHF 1,621 million, up CHF 262 million, or 19%, compared to 2006.




     Results

                                                                                                          in / end of             % change

                                                                                        2007      2006        2005      07 / 06   06 / 05

     Statements of income (CHF million)
     Net revenues                                                                       3,939     3,497       3,370         13          4
     Provision for credit losses                                                         (62)      (54)        (96)         15        (44)
     Compensation and benefits                                                          1,352     1,258       1,221          7          3
     General and administrative expenses                                                 900       811          832         11         (3)
     Commission expenses                                                                 128       123          108          4         14
     Total other operating expenses                                                     1,028      934          940         10         (1)
     Total operating expenses                                                           2,380     2,192       2,161          9          1
     Income from continuing operations before taxes                                     1,621     1,359       1,305         19          4

     Statement of income metrics (%)
     Compensation/revenue ratio                                                          34.3      36.0        36.2          –          –
     Non-compensation/revenue ratio                                                      26.1      26.7        27.9          –          –
     Cost/income ratio                                                                   60.4      62.7        64.1          –          –
     Pre-tax income margin                                                               41.2      38.9        38.7          –          –

     Utilized economic capital and return
     Average utilized economic capital (CHF million)                                    3,076     3,463       3,660        (11)        (5)
     Pre-tax return on average utilized economic capital (%) 1                           52.8      39.4        35.7          –          –

     Balance sheet statistics (CHF million)
     Total assets                                                                     107,929   111,010   114,904           (3)        (3)
     Net loans                                                                         99,241    94,514     92,567           5          2
     Goodwill                                                                            181       181          180          0          1

     Number of employees (full-time equivalents)
     Number of employees                                                                8,900     8,800            –         1          –

     1
         Calculated using a return excluding interest costs for allocated goodwill.
                                                                                              Operating and financial review               55
                                                                                                                    Private Banking




Results (continued)

                                                                                                      in / end of               % change

                                                                                      2007    2006        2005      07 / 06     06 / 05

Net revenue detail (CHF million)
Net interest income                                                                   2,342   2,179       2,092          7            4
Total non-interest income                                                             1,597   1,318       1,278         21            3
Net revenues                                                                          3,939   3,497       3,370         13            4

Number of branches
Number of branches                                                                     216     215          215          0            0




Operating environment                                              Performance indicators

Swiss economic fundamentals remained robust during 2007.           Pre-tax income margin (KPI)
Consumer confidence remained high reflecting the decrease in       Our target over market cycles is a pre-tax income margin
the unemployment rate and overall favorable economic               above 40%. In 2007, our pre-tax income margin was 41.2%,
prospects. Concerns over inflation persisted during the year.      up 2.3 percentage points from 2006.
The SNB gradually increased key interest rates until 3Q07 and
then held interest rates steady in 4Q07. Compared to 2006,         Cost/income ratio
volumes of interest-related asset and liability products grew,     In 2007, the cost/income ratio was 60.4%, compared to
reflecting the positive operating environment and consumer         62.7% in 2006.
sentiment. Liability margins increased, but we faced contin-
ued asset margin pressure from strong market competition           Pre-tax return on average utilized economic capital
and a move by clients from fixed to variable interest rate prod-   In 2007, the pre-tax return on average utilized economic cap-
ucts.                                                              ital was 52.8%, compared to 39.4% in 2006.



Results summary

In 2007, income from continuing operations before taxes was
a record CHF 1,621 million, up CHF 262 million, or 19%,
compared to 2006. Net revenues were a record CHF 3,939             Pre-tax income margin
million, up CHF 442 million, or 13%. Net interest income
increased CHF 163 million, or 7%, mainly due to higher liabil-     in %
ity volumes and margins and lower funding costs, which were        50
partially offset by decreasing asset margins. Total non-interest
income was significantly higher, mainly driven by the increase     40

in commissions and fees related to minority interests of a con-
                                                                   30
solidated joint venture. Net releases of provision for credit
losses were CHF 62 million, compared to net releases of CHF
                                                                   20
54 million in 2006. Total operating expenses were CHF 2,380
million, up CHF 188 million, or 9%, mainly due to higher com-      10
pensation and benefits as well as expenses related to the
minority interests of a consolidated joint venture. Net new         0

assets were CHF 3.3 billion, mainly benefiting from inflows in                 2005               2006                   2007
the institutional pension fund business and retail banking.
56




     Results detail                                                     Operating expenses
                                                                        Compensation and benefits
     The following provides a comparison of our 2007 results ver-       2007 vs 2006: Up 7% from CHF 1,258 million to CHF 1,352 million
     sus 2006 and 2006 results versus 2005.                             The increase was driven by higher personnel costs related to
                                                                        increased headcount and higher salaries and related benefits,
     Net revenues                                                       partially offset by lower performance-related compensation
     Net interest income                                                due to an increase in deferred share-based compensation for
     2007 vs 2006: Up 7% from CHF 2,179 million to CHF 2,342 million    2007.
     The increase was mainly due to higher liability volumes and        2006 vs 2005: Up 3% from CHF 1,221 million to CHF 1,258 million
     margins and lower funding costs, partially offset by lower asset   The increase was mainly driven by higher personnel costs from
     margins impacted by the ongoing competitive pressure.              salary increases and related benefits and higher performance-
     2006 vs 2005: Up 4% from CHF 2,092 million to CHF 2,179 million    related compensation reflecting the better results.
     The increase was mainly due to higher liability volumes and
     margins, partially offset by lower asset margins.                  General and administrative expenses
                                                                        2007 vs 2006: Up 11% from CHF 811 million to CHF 900 million
     Total non-interest income                                          Higher costs were mainly due to increased expenses related to
     2007 vs 2006: Up 21% from CHF 1,318 million to CHF 1,597 million   minority interests of a consolidated joint venture, offset in part
     The increase was mainly due to higher commissions and fees,        by releases of non-credit-related provisions in 2007.
     primarily related to minority interests of a consolidated joint    2006 vs 2005: Down 3% from CHF 832 million to CHF 811 million
     venture.                                                           The decrease reflected effective cost management, which
     2006 vs 2005: Up 3% from CHF 1,278 million to CHF 1,318 million    more than offset higher expenses associated with the inte-
     The increase was mainly due to higher asset-based commis-          grated bank branding implementation.
     sions and fees.
                                                                        Commission expenses
     Provision for credit losses                                        2007 vs 2006: Up 4% from CHF 123 million to CHF 128 million
     2007 vs 2006: From CHF (54) million to CHF (62) million            The increase in commission expenses was due to higher com-
     We reported net releases in 2007 supported by the favorable        mission and fee revenues and increased business volumes.
     credit environment.                                                2006 vs 2005: Up 14% from CHF 108 million to CHF 123 million
     2006 vs 2005: From CHF (96) million to CHF (54) million            The increase in commission expenses was due to higher com-
     With the favorable credit environment, we benefited from net       mission and fee revenues.
     releases in 2006.
                                                                                                                                         Operating and financial review                          57
                                                                                                                                                               Investment Banking




Investment Banking
During 2007, Investment Banking had income from continuing operations before taxes of CHF 3,649 million.
Net revenues of CHF 18,958 million declined from 2006 levels due to lower fixed income results, including
valuation reductions of CHF 3,187 million in the structured products and leveraged finance businesses as a
result of dislocations in the credit and mortgage markets during the year.




Results

                                                                                                                                                     in / end of                 % change

                                                                                                                           2007          2006            2005          07 / 06    06 / 05

Statements of income (CHF million)
Net revenues                                                                                                            18,958         20,469          15,547              (7)          32
Provision for credit losses                                                                                                 300           (38)            (73)              –          (48)
Compensation and benefits                                                                                               10,191         10,261            8,621             (1)          19
                                                                                                                                                 1                 2
General and administrative expenses                                                                                       3,435         3,077            4,396             12          (30)
Commission expenses                                                                                                       1,383         1,218            1,004             14           21
Total other operating expenses                                                                                            4,818         4,295            5,400             12          (20)
Total operating expenses                                                                                                15,009         14,556          14,021               3                4
Income from continuing operations before taxes                                                                            3,649         5,951            1,599            (39)         272

Statement of income metrics (%)
Compensation/revenue ratio                                                                                                 53.8           50.1            55.5              –                –
Non-compensation/revenue ratio                                                                                             25.4           21.0            34.7              –                –
Cost/income ratio                                                                                                          79.2           71.1            90.2              –                –
Pre-tax income margin                                                                                                      19.2           29.1            10.3              –                –

Utilized economic capital and return
                                                                                                                                  3
Average utilized economic capital (CHF million)                                                                         18,940         18,026          15,002               5           20
                                                                4                                                                 3
Pre-tax return on average utilized economic capital (%)                                                                    20.4           35.4            13.0              –                –

Balance sheet statistics (CHF million)
Total assets                                                                                                        1,140,740 1,046,557              957,513                9                9
Net loans                                                                                                               64,892         44,285          34,762              47           27
Goodwill                                                                                                                  7,465         7,809            8,246             (4)          (5)

Number of employees (full-time equivalents)
Number of employees                                                                                                     20,600         18,700                 –            10                –

1
 Includes CHF 508 million of credits from insurance settlements for litigation and related costs. 2 Includes CHF 960 million charge to increase the reserve for certain private litigation
matters. 3 Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business, as we do not consider the impact of these valuation reductions to
be material to our economic capital, position risk, VaR or related trends. For further information, refer to III – Balance Sheet, Off-balance sheet, Treasury and Risk – Risk management –
Revaluation impact on risk metrics. 4 Calculated using a return excluding interest costs for allocated goodwill.
58




     Results (continued)

                                                                                                                                                                    in                    % change

                                                                                                                                  2007           2006           2005        07 / 06        06 / 05

     Net revenue detail (CHF million)
                                                                                                                                          1
     Debt underwriting                                                                                                           1,864          2,206          1,484            (16)               49
     Equity underwriting                                                                                                         1,444          1,270             931             14               36
     Total underwriting                                                                                                          3,308          3,476          2,415              (5)              44
     Advisory and other fees                                                                                                     2,253          1,900          1,475              19               29
     Total underwriting and advisory                                                                                             5,561          5,376          3,890                3              38
                                                                                                                                          2
     Fixed income trading                                                                                                        6,084          9,598          7,004            (37)               37
     Equity trading                                                                                                              7,751          5,881          4,340              32               36
                                                                                                                                          3
     Total trading                                                                                                              13,835         15,479         11,344            (11)               36
                                                                                                                                          4
     Other                                                                                                                        (438)          (386)            313             13                –
     Net revenues                                                                                                               18,958         20,469         15,547              (7)              32

     Average one-day, 99% Value-at-Risk (CHF million)
     Interest rate and credit spread                                                                                                 72             56             62             29           (10)
     Foreign exchange                                                                                                                26             19             13             37               46
     Commodity                                                                                                                       17             10               6            70               67
     Equity                                                                                                                          80             59             41             36               44
     Diversification benefit                                                                                                       (81)           (65)           (56)             25               16
                                                                                                                                          5
     Average one-day, 99% Value-at-Risk                                                                                             114             79             66             44               20

     1
       Includes CHF 380 million of net valuation reductions (including hedges) on ABS CDO origination assets and CHF 31 million of fee revenues from the leveraged finance
     business. 2 Includes CHF 1,067 million of net valuation reductions (including fees, hedges and interest on funded positions) on CMBS and RMBS, CHF 311 million of net valuation
     reductions (including fees, hedges, interest on funded positions and recoveries) on leveraged finance loan commitments and CHF 905 million of net valuation reductions (including
     hedges) on ABS CDO warehouse and synthetic CDO assets. 3 Fixed income and equity trading also benefited from fair value gains of CHF 1,111 million due to the widening credit
     spreads on Credit Suisse debt. 4 Includes CHF 555 million of net valuation reductions (including fees, hedges, interest on funded positions and recoveries) on bridge loan
     commitments. 5 Does not reflect the valuation reductions from revaluing certain ABS positions in our CDO trading business, as we do not consider the impact of these valuation
     reductions to be material to our economic capital, position risk, VaR or related trends. For further information, refer to III – Balance Sheet, Off-balance sheet, Treasury and Risk – Risk
     management – Revaluation impact on risk metrics.


     Operating environment                                                                            Results summary

     The operating environment in 2007 was challenging following                                      For 2007, income from continuing operations before taxes
     the dislocation of the US subprime mortgage market that                                          was CHF 3,649 million, down CHF 2,302 million, or 39%,
     began towards the end of the first quarter. The effect of this                                   compared to 2006. Net revenues were CHF 18,958 million,
     dislocation broadened in the second half of the year to other                                    down CHF 1,511 million, or 7%, compared to 2006. We
     sectors and asset classes. Credit markets in the first half of                                   achieved higher revenues in equity trading, advisory and other
     the year remained generally positive with higher levels of activ-                                fees and equity underwriting, but had significantly lower rev-
     ity, but credit spreads started to widen sharply in the second                                   enues in fixed income trading and debt underwriting, reflecting
     half of the year reflecting reduced investor demand in most of                                   the severe market dislocations in the second half of 2007.
     our credit-related businesses. Market participants scaled back                                   Total operating expenses increased 3%, primarily reflecting
     risk and reduced leverage, resulting in pronounced changes in                                    credits from insurance settlements for litigation and related
     market values and increased volatility in equities, interest rates                               costs of CHF 508 million recorded in 2006. The weakening of
     and foreign exchange. Certain businesses, including interest                                     the average rate of the US dollar against the Swiss franc
     rate products, continued to benefit from declining interest                                      adversely affected revenues and favorably impacted expenses.
     rates, a steeper yield curve and an overall flight to quality.                                   Net revenues were down 5% and total operating expenses
     Equity market volumes rose to record levels during the year                                      were up 7% in US dollar terms.
     and volatility was high. Although most major indices were                                            Results in 2007 were negatively impacted by the disloca-
     down in the fourth quarter, they ended the year higher.                                          tion in the structured products and credit markets in the sec-
                                                                                                      ond half of the year, which led to significantly lower fixed
                                                                                                      income trading results compared to 2006, partly offset by
                                                                                                                                         Operating and financial review                          59
                                                                                                                                                              Investment Banking




strong performances in emerging markets trading and interest                                     Net valuation reductions
rate products in the US and Europe. Our debt underwriting
revenues were also negatively impacted by the adverse market                                     CHF million                                                                           in 2007

conditions in the structured products and credit markets.                                        Leveraged finance 1                                                                       835

Equity trading benefited from strong performances in the                                         CMBS 2                                                                                    554
                                                                                                 RMBS 2                                                                                    513
global cash, prime services, derivatives and proprietary trading
                                                                                                 CDO 3                                                                                   1,285
businesses. Fixed income and equity trading also benefited
                                                                                                 Total                                                                                   3,187
from fair value gains of CHF 1,111 million due to widening
credit spreads on Credit Suisse debt.                                                            1
                                                                                                  Including fees, hedges, interest on funded positions and recoveries.   2
                                                                                                                                                                             Including fees,
    Our advisory and other fees and equity underwriting busi-                                    hedges and interest on funded positions. 3 Including hedges.

nesses had higher revenues compared to 2006. Provision for
credit losses increased due primarily to higher provisions relat-
ing to a guarantee provided in a prior year to a third-party
bank.                                                                                            Leveraged finance
                                                                                                 Leveraged finance revenues, including both origination and
                                                                                                 trading activities, totaled CHF 1.0 billion in 2007 compared to
Impact on results of the events in the mortgage                                                  CHF 2.6 billion in 2006, reflecting the market dislocation in
and credit markets                                                                               the second half of 2007.
                                                                                                     2007 revenues included net valuation reductions (including
In 2007, the dislocation in the structured products and credit                                   fees, hedges, interest on funded positions and recoveries) of
markets led to significantly lower revenues in our leveraged                                     CHF 835 million. Our gross valuation reductions (net of fees
finance and structured products businesses, primarily CMBS,                                      and terminations) were CHF 1,469 million. Our unfunded non-
RMBS and CDO. Our leveraged finance and structured prod-                                         investment-grade loan commitments (both leveraged loan and
ucts businesses had net valuation reductions of CHF 3,187                                        bridge) were CHF 25.3 billion (USD 22.4 billion) as of the end
million in 2007, including the revaluing of certain ABS posi-                                    of 2007. Our funded non-investment-grade loans (both lever-
tions in CDO trading in our structured products business.                                        aged loan and bridge) were CHF 10.7 billion (USD 9.5 billion)
                                                                                                 as of the end of 2007. The majority of our funded and
                                                                                                 unfunded loan commitments exposure is to large cap issuers
                                                                                                 with historically stable cash flows and substantial assets.

Exposures                                                                                        Structured products
                                                                                                 Our structured products businesses had losses of CHF 796
CHF billion                                                                     end of 2007      million in 2007 compared to revenues of CHF 3.1 billion in
Origination-related positions 1                                                                  2006.
Unfunded commitments                                                                    25.3         Our CMBS business had net valuation reductions (includ-
Funded positions                                                                        10.7     ing fees, hedges and interest on funded positions) of CHF
Leveraged finance                                                                       36.0     554 million in 2007. Our gross valuation reductions (net of
Commercial mortgages                                                                    25.9     fees) were CHF 1,237 million. Our CMBS origination gross
Trading-related book positions 2
                                                                                                 exposure was CHF 25.9 billion (USD 22.9 billion) as of the
US subprime                                                                               1.6    end of 2007. The vast majority of our loans are secured by
US Alt-A                                                                                  2.8    historically stable, high-quality, income-producing real estate
US prime                                                                                  1.4    to a diverse range of borrowers in the US, Europe and Asia.
European/Asian                                                                            2.9        Our RMBS business had net valuation reductions (includ-
Residential mortgages                                                                     8.7    ing fees, hedges and interest on funded positions) of CHF
ABS and indices                                                                           3.2    513 million in 2007. Within our RMBS business, we had net
Synthetic ABS CDO                                                                        (1.1)   US subprime exposure of CHF 1.6 billion (USD 1.4 billion) as
Cash CDOs                                                                                (0.5)   of the end of 2007. Our other RMBS non-agency exposure
CDO US subprime 3                                                                         1.6
                                                                                                 was CHF 7.1 billion (USD 6.3 billion) as of the end of 2007.
1
  Exposures shown gross.   2
                               Exposures shown net.   3
                                                          Reflects the valuation reductions on   Of this amount, our US Alt-A exposure was CHF 2.8 billion
certain ABS positions.                                                                           (USD 2.5 billion) as of the end of 2007. The RMBS business
60




     League table positions

                                                                                                                                                   in / end of

                                                                                                                                2007      2006         2005

                                                                         1
     League table rank / market share (% – rounded)
     Global fee pool 2                                                                                                        7 / 5%   4 / 6%       7 / 5%

     High-yield 3                                                                                                          2 / 11%     3 / 12%     3 / 11%
     Investment-grade 3                                                                                                    13 / 3%     13 / 3%     10 / 4%
     Asset-backed 3                                                                                                        10 / 5%     8 / 5%       – / –%
     Mortgage-backed 3                                                                                                        4 / 7%   5 / 7%       – / –%
     Total debt underwriting 3                                                                                             11 / 4%     8 / 5%       6 / 5%

     IPO 2                                                                                                                    3 / 8%   4 / 7%      1 / 10%
     Follow-on 2                                                                                                              7 / 6%   7 / 6%      10 / 3%
     Convertible 2                                                                                                            9 / 5%   11 / 4%     10 / 4%
     Total equity underwriting 2                                                                                              7 / 6%   7 / 6%       8 / 5%

     Announced mergers and acquisitions 3                                                                                 6 / 20%      6 / 19%   10 / 11%
     Completed mergers and acquisitions 3                                                                                 8 / 18%      8 / 15%     8 / 14%

     1                                          2              3
         Volume-based, except global fee pool       Dealogic       Thomson Financial




     is managed as a trading book on a net basis, and the related                      Compensation/revenue ratio
     gross long and short positions are monitored as part of our                       The 2007 compensation/revenue ratio was 53.8% compared
     risk management activities and price testing procedures.                          to 50.1% in 2006, with discretionary bonus representing a
         Our ABS CDO origination, warehousing and synthetic busi-                      significant portion. Compensation and benefits for a given year
     nesses had net valuation reductions (including hedges) of CHF                     are determined by the strength and breadth of the business
     1,285 million in 2007. These valuation reductions include the                     results, staffing levels and the impact of share-based compen-
     revaluing of certain ABS positions in our CDO trading busi-                       sation programs.
     ness. Our CDO business had net US subprime exposure of
     CHF 1.6 billion (USD 1.4 billion) as of the end of 2007,                          Value-at-Risk
     reflecting the revaluing of these ABS positions. The CDO                          The 2007 average one-day, 99% VaR was CHF 114 million
     business is managed as a trading book on a net basis, and                         compared to CHF 79 million in 2006. 2007 VaR does not
     the related gross long and short positions are monitored as                       reflect the valuation reductions from revaluing certain ABS
     part of our risk management activities and price testing proce-                   positions in our CDO trading business. For further information
     dures.
         For further information refer to – Credit Suisse – Revaluing
     of certain asset-backed securities positions.
                                                                                       Pre-tax income margin

                                                                                       in %
     Performance indicators
                                                                                       30

     Pre-tax income margin (KPI)
                                                                                       20
     Our target over market cycles is a pre-tax income margin of
     30% or greater. The 2007 pre-tax income margin was 19.2%                          10
     compared to 29.1% in 2006.
                                                                                        0

                                                                                                    2005               2006                 2007
                                                                                                   Operating and financial review         61
                                                                                                                   Investment Banking




on VaR for Credit Suisse, refer to III – Balance sheet, Off-bal-     2006 vs 2005: Up 29% from CHF 1,475 million to CHF 1,900 million
ance sheet, Treasury and Risk – Risk management.                     The increase was primarily due to a significant increase in
                                                                     industry-wide mergers and acquisitions activity and increased
Pre-tax return on average utilized economic capital                  market share. The advisory and other fees results also
The 2007 pre-tax return on average utilized economic capital         reflected significantly higher revenues from the private fund
was 20.4% compared to 35.4% in 2006.                                 group.

                                                                     Fixed income trading
Results detail                                                       2007 vs 2006: Down 37% from CHF 9,598 million to CHF 6,084 million
                                                                     The decrease was driven by weaker results, including valuation
The following provides a comparison of our 2007 results ver-         reductions in both the structured products and leveraged
sus 2006 and 2006 results versus 2005.                               finance businesses. The structured products results reflected
                                                                     valuation reductions on our residential and commercial loan,
Net revenues                                                         CDO warehouse and synthetic CDO assets, stemming from
Debt underwriting                                                    price declines, decreased liquidity in the market and limited
2007 vs 2006: Down 16% from CHF 2,206 million to CHF 1,864 million   trading activity. The leveraged finance losses reflected fair
The decrease was primarily due to weaker performance in the          value reductions on our loan commitments. The commodities
structured products businesses, which were negatively                business recorded lower revenues due to poor trading per-
impacted by valuation reductions on our CDO assets. The dis-         formance in the power and gas sectors. These results were
location in the credit markets resulted in lower levels of high-     partly offset by solid performances in emerging markets trad-
yield and leveraged-lending issuance activity in 2007, but           ing and interest rate products in the US and Europe. In addi-
leveraged finance underwriting revenues increased slightly due       tion, fixed income trading benefited from fair value gains of
to the strong performance in the first half of 2007.                 CHF 1,000 million on Credit Suisse debt.
2006 vs 2005: Up 49% from CHF 1,484 million to CHF 2,206 million     2006 vs 2005: Up 37% from CHF 7,004 million to CHF 9,598 million
The increase primarily reflected higher results in leveraged         The increase primarily reflected strong performances in the
finance amid more favorable market conditions and higher             CMBS, emerging markets, leveraged finance and global for-
industry volumes, increased market share and strength in the         eign exchange businesses. Investment Banking expanded its
financial sponsor client sector. The investment-grade capital        RMBS business, and revenues in 2006 were slightly higher
markets business had good revenue growth compared to                 compared to 2005, despite softer market conditions in the US
2005 in line with the focus on profitability of this business.       towards the end of 2006. The commodities business delivered
                                                                     solid revenues.
Equity underwriting
2007 vs 2006: Up 14% from CHF 1,270 million to CHF 1,444 million     Equity trading
The increase was due primarily to record industry-wide equity        2007 vs 2006: Up 32% from CHF 5,881 million to CHF 7,751 million
issuance volumes, resulting from higher activity in IPOs, con-       Record revenues reflected strong performances in our cash,
vertible issuances and follow-on offerings, and improved mar-        prime services and equity derivatives businesses. The global
ket share.                                                           cash business benefited from increased deal activity, higher
2006 vs 2005: Up 36% from CHF 931 million to CHF 1,270 million       trading volumes and a strong performance by our AES ® busi-
The improvement was primarily due to record industry-wide            ness. Prime services had a strong year, with growth in client
equity issuance volumes resulting from improvement in both           balances as well as new client mandates. Equity derivatives
the IPO and convertibles markets.                                    had solid performances in all regions. The results were par-
                                                                     tially offset by lower revenues in our equity proprietary trading
Advisory and other fees                                              and convertibles businesses. In addition, equity trading bene-
2007 vs 2006: Up 19% from CHF 1,900 million to CHF 2,253 million     fited from fair value gains of CHF 111 million on Credit Suisse
Record revenues reflected a significant increase in industry-        debt.
wide mergers and acquisitions activity and increased market          2006 vs 2005: Up 36% from CHF 4,340 million to CHF 5,881 million
share. Revenues from the private fund group, which raises            The increase reflected higher revenues in all key business
capital for hedge funds, private equity funds and real estate        areas. The cash business benefited from an increase in deal
funds, were solid, but lower than the prior year, reflecting the     activity in most regions, stronger secondary markets and con-
decline in financial sponsor activity in the second half of 2007.    tinued strong performance from the AES ® business. Equity
62




     proprietary trading had a strong performance across most              General and administrative expenses
     strategies and regions amid positive market conditions.               2007 vs 2006: Up 12% from CHF 3,077 million to CHF 3,435 million
                                                                           The increase reflected the 2006 credits from insurance settle-
     Other                                                                 ments of CHF 508 million. Excluding these credits, general
     2007 vs 2006: Down from CHF (386) million to CHF (438) million        and administrative expenses declined CHF 150 million, or 4%,
     The decrease was due to valuation reductions on our bridge            reflecting the progress made on cost management initiatives in
     commitments, partly offset by higher gains from private equity-       2007. Market conditions in the second half of 2007 and
     related investments not managed as part of Asset Manage-              related delayed or cancelled transactions increased profes-
     ment.                                                                 sional fees and travel and entertainment expenses, with lower
     2006 vs 2005: Down from CHF 313 million to CHF (386) million          recoveries from client-related travel.
     The decrease reflected lower gains from private equity-related        2006 vs 2005: Down 30% from CHF 4,396 million to CHF 3,077 million
     investments not managed as part of Asset Management and               The decrease reflected the 2005 charge for increased
     losses on credit default swaps used to hedge the loan portfo-         reserves for certain private litigation matters of CHF 960 mil-
     lio compared to gains on such credit default swaps in 2005.           lion and the 2006 credits from insurance settlements of CHF
                                                                           508 million. Excluding these charges, general and administra-
     Provision for credit losses                                           tive expenses increased 4%, due primarily to higher profes-
     2007 vs 2006: From CHF (38) million to CHF 300 million                sional fees from increased deal activity, the Centers of Excel-
     The increase was due primarily to higher provisions relating to       lence start-up initiatives and higher premises and equipment
     a guarantee provided in a prior year to a third-party bank.           expenses.
     2006 vs 2005: From CHF (73) million to CHF (38) million
     The releases reflected the favorable credit environment.              Commission expenses
                                                                           2007 vs 2006: Up 14% from CHF 1,218 million to CHF 1,383 million
     Operating expenses                                                    This was due primarily to higher commissions in line with
     Compensation and benefits                                             higher business activity.
     2007 vs 2006: Down 1% from CHF 10,261 million to CHF 10,191 million   2006 vs 2005: Up 21% from CHF 1,004 million to CHF 1,218 million
     The decrease included lower performance-related compensa-             This was due primarily to higher commissions in line with
     tion costs resulting from lower revenues and higher deferred          higher business activity.
     share-based compensation for 2007. This decrease was
     mostly offset by higher salaries and deferred compensation            Personnel
     expense for prior-year share awards.                                  The increase in headcount in 2007 from 2006 levels was due
     2006 vs 2005: Up 19% from CHF 8,621 million to CHF 10,261 million     to broad-based recruitment in fixed income, equity and invest-
     This was due primarily to higher performance-related compen-          ment banking. In late 2007 and continuing in 2008, we selec-
     sation in line with higher revenues.                                  tively reduced headcount in certain Investment Banking busi-
                                                                           nesses to reflect market conditions.
                                                                                                                                      Operating and financial review                        63
                                                                                                                                                                 Asset Management




Asset Management
Our 2007 results were impacted by the challenges in short-term fixed income markets in the second half of
2007. Income from continuing operations before taxes was CHF 354 million, which included valuation
reductions of CHF 920 million from securities purchased from our money market funds. Before these valuation
reductions, income from continuing operations was CHF 1,274 million.




Results

                                                                                                                                                   in / end of                % change

                                                                                                                         2007          2006            2005         07 / 06    06 / 05

Statements of income (CHF million)
                                                                                                                                 1
Net revenues                                                                                                            2,577         2,861            2,801           (10)            2
Provision for credit losses                                                                                                (1)             1                0            –             –
                                                                                                                                               2
Compensation and benefits                                                                                               1,205         1,129              947             7            19
                                                                                                                                               3
General and administrative expenses                                                                                       609            853             553           (29)           54
Commission expenses                                                                                                       410            370             295            11            25
Total other operating expenses                                                                                          1,019         1,223              848           (17)           44
Total operating expenses                                                                                                2,224         2,352            1,795            (5)           31
Income from continuing operations before taxes                                                                            354            508           1,006           (30)          (50)

Statement of income metrics (%)
Compensation/revenue ratio                                                                                               46.8           39.5            33.8             –             –
Non-compensation/revenue ratio                                                                                           39.5           42.7            30.3             –             –
Cost/income ratio                                                                                                        86.3           82.2            64.1             –             –
Pre-tax income margin                                                                                                    13.7           17.8            35.9             –             –

Utilized economic capital and return
Average utilized economic capital (CHF million)                                                                         1,677         1,479            1,155            13            28
Pre-tax return on average utilized economic capital (%) 4                                                                24.3           41.8            94.9             –             –

Balance sheet statistics (CHF million)
Total assets                                                                                                          27,784         20,448          21,572             36            (5)
Goodwill                                                                                                                2,442         2,423            2,567             1            (6)

Number of employees (full-time equivalents)
Number of employees                                                                                                     3,600         3,400                 –            6             –

1
  Includes valuation reductions of CHF 920 million from securities purchased from our money market funds. 2 Includes CHF 53 million of severance costs relating to the
realignment. 3 Includes CHF 140 million of intangible asset impairments and CHF 32 million of professional fees relating to the realignment. 4 Calculated using a return excluding
interest costs for allocated goodwill.
64




     Results (continued)

                                                                                                                                                                in / end of                   % change

                                                                                                                                    2007          2006                2005        07 / 06      06 / 05

     Net revenue detail (CHF million)
     Fixed income and money market                                                                                                   373            321                 300            16                7
     Equity                                                                                                                          408            430                 438            (5)           (2)
     Balanced                                                                                                                        771            674                 688            14            (2)
     Private equity 1                                                                                                                312            236                 198            32            19
     Diversified strategies 2                                                                                                        380            273                 206            39            33
     Fund and alternative solutions 3                                                                                                353            341                 276              4           24
     Alternative investments                                                                                                       1,045            850                 680            23            25
     Other                                                                                                                           219              84                 (3)          161                –
     Net revenues before private equity and other
     investment-related gains and securities purchased
     from our money market funds                                                                                                   2,816          2,359               2,103            19            12
     Private equity and other investment-related gains                                                                               681            502                 698            36           (28)
     Net revenues before securities purchased from
     our money market funds                                                                                                        3,497          2,861               2,801            22                2
     Securities purchased from our money market funds                                                                               (920)              0                   0             –               –
     Net revenues                                                                                                                  2,577          2,861               2,801           (10)               2

     Gross and net margin on assets under management (bp)
     Gross margin before private equity and other
     investment-related gains and securities purchased
     from our money market funds                                                                                                       39             37                 41              –               –
     Gross margin on private equity and other
     investment-related gains                                                                                                          10              8                 14              –               –
     Gross margin before securities purchased
     from our money market funds                                                                                                       49             45                 55              –               –
     Gross margin on securities purchased
     from our money market funds                                                                                                     (13)              0                   0             –               –
     Gross margin                                                                                                                      36             45                 55              –               –

     Net margin (pre-tax)                                                                                                               5              8                 20              –               –

     1                                                                                           2                                                                3
       Includes private equity fees and commissions and alternative investment joint ventures.       Includes real estate, leveraged investments and Volaris.         Includes fund of hedge funds and
     quantitative strategies.




     Operating environment                                                                                  Financial markets during the second half of 2007 were
                                                                                                        dominated by announcements of valuation reductions by finan-
     The operating environment for the asset management industry                                        cial institutions with exposures to the US subprime market.
     was favorable in the first half of 2007, reflecting strong eco-                                    Credit spreads widened and liquidity deteriorated. Short-term
     nomic growth and solid net new assets. The second half of                                          fixed income markets in particular were challenging, resulting
     2007 reflected more challenging markets with higher general                                        in significant valuation reductions from securities purchased
     risk levels, especially in credit markets, higher volatility and a                                 from our money market funds.
     flight to quality. Opportunities in the first half of 2007 were
     seen across asset classes, but in the second half of 2007,
     they were primarily seen in emerging markets and alternative                                       Results summary
     investments, with challenging real estate, mortgage and credit
     sectors. Hedge fund performance was generally positive                                             In 2007, income from continuing operations before taxes was
     despite the turmoil in credit markets in the second half of                                        CHF 354 million, down CHF 154 million, or 30%, compared
     2007.                                                                                              to 2006, reflecting valuation reductions of CHF 920 million
                                                                                                Operating and financial review                65
                                                                                                                      Asset Management




from securities purchased from our money market funds,              2006, reflecting CHF 16.6 billion in assets under manage-
mostly offset by increased revenues from alternative invest-        ment from Hedging-Griffo, positive market movements of CHF
ments and balanced assets and higher private equity and other       14.9 billion and net new assets of CHF 3.6 billion, partially
investment-related gains. Our results were also positively          offset by negative foreign exchange-related movements of
impacted by the completion of the acquisition of Hedging-           CHF 12.2 billion. Net new assets included inflows of CHF
Griffo as of November 1, 2007. Before these valuation reduc-        25.4 billion in alternative investments, CHF 6.7 billion in bal-
tions, income from continuing operations was CHF 1,274 mil-         anced assets and CHF 4.7 billion in fixed income assets,
lion (refer to the table “Results before securities purchased       mostly offset by outflows of CHF 28.4 billion in money market
from our money market funds”).                                      assets and CHF 5.1 billion in equities.
    Net revenues were CHF 2,577 million, down CHF 284
million, or 10%, compared to 2006. Net revenues before
securities purchased from our money market funds were CHF           Securities purchased from our money market
3,497 million, an increase of CHF 636 million, or 22%, com-         funds
pared to 2006. Asset management and administrative fees
were strong, reflecting growth in average assets under man-         In the second half of 2007, we repositioned our money market
agement during 2007, particularly in alternative investments        funds by purchasing securities from these funds with the
and balanced assets. Performance-based fees increased sig-          intent to eliminate structured investment vehicle (SIV), ABS
nificantly, primarily from Hedging-Griffo. Private equity com-      CDO and US subprime exposure. As of the end of 2007,
mission income increased, reflecting the strength of our pri-       there were no US subprime positions and no material SIV or
vate equity franchise. Private equity and other                     CDO positions in our money market funds. The securities
investment-related gains were CHF 681 million, up CHF 179           transactions were executed in order to address liquidity con-
million, or 36%, primarily due to fair value gains on our invest-   cerns caused by the US market’s extreme conditions. The
ments. Total operating expenses were CHF 2,224 million, a           securities were purchased at amortized cost from the funds as
decrease of CHF 128 million, or 5%, compared to 2006,               mandated by regulation. We had no legal obligation to pur-
which included realignment costs of CHF 225 million.                chase these securities. Valuation reductions on these securi-
    Assets under management were CHF 691.3 billion as of            ties were CHF 920 million in 2007. As of the end of 2007,
the end of 2007, up from CHF 669.9 billion as of the end of         the fair value of our balance sheet exposure from these secu-




Results before securities purchased from our money market funds

                                                                                                        in / end of                % change

                                                                                      2007       2006       2005         07 / 06   06 / 05

Statements of income (CHF million)
Net revenues                                                                          3,497     2,861       2,801            22          2
Provision for credit losses                                                             (1)         1            0            –          –
Compensation and benefits                                                             1,205     1,129         947             7         19
Total other operating expenses                                                        1,019     1,223         848           (17)        44
Total operating expenses                                                              2,224     2,352       1,795            (5)        31
Income from continuing operations before taxes                                        1,274       508       1,006           151        (50)

Statement of income metrics (%)
Compensation/revenue ratio                                                             34.5      39.5        33.8             –          –
Non-compensation/revenue ratio                                                         29.1      42.7        30.3             –          –
Cost/income ratio                                                                      63.6      82.2        64.1             –          –
Pre-tax income margin                                                                  36.4      17.8        35.9             –          –

Gross and net margin on assets under management (bp)
Gross margin                                                                            49         45          55             –          –

Net margin (pre-tax)                                                                    18          8          20             –          –
66




     Securities purchased from our money market funds

                                                                                                                                              Gains/                    Matured/        Fair value
                                                                                                                           Purchased        (losses)                     restruc-          end of
                                                                                                                             in 2007        in 2007            Sold         tured            2007

     CP, bonds and other securities issued by (CHF million)
     SIVs                                                                                                                       5,290          (461)          (104)       (2,244)           2,481
                                                                                                                                                                                    1
     ABS vehicles                                                                                                               1,031          (325)          (584)           904           1,026
     Corporates                                                                                                                 2,965          (134)          (213)       (2,204)               414
     Total                                                                                                                      9,286          (920)         (901)        (3,544)           3,921

     1
      Includes securities of CHF 1,001 million, at amortized cost, received in lieu of payment from a restructured asset-backed vehicle. The fair value of these securities as of the end of
     2007 was CHF 576 million.




     Revenue details on securities purchased from our money market funds

                                                                                                                                                                                         in / end of

                                                                                                                                                                                               2007

     Revenue details (CHF million)
     Realized gains/(losses)                                                                                                                                                                 (113)
     Unrealized gains/(losses)                                                                                                                                                               (807)
     Securities purchased from our money market funds                                                                                                                                        (920)




     rities was CHF 3.9 billion, compared to CHF 9.3 billion pur-                                    Performance indicators
     chased in the second half of the year. The majority of this
     exposure is mortgage-backed and CHF 419 million is US sub-                                      Pre-tax income margin (KPI)
     prime-related.                                                                                  Our target over market cycles is a pre-tax income margin
          Of the CHF 3.9 billion balance sheet exposure, CHF 2.5                                     above 35%. In 2007, the pre-tax margin was 13.7%, com-
     billion are securities issued by SIVs, of which the two largest                                 pared to 17.8% in 2006. The pre-tax margin before securities
     positions totaled CHF 1.7 billion, with corresponding aggre-                                    purchased from our money market funds was 36.4%, com-
     gate unrealized losses of CHF 435 million. Of the remaining                                     pared to 17.8% in 2006.
     CHF 798 million issued by SIVs, we had corresponding aggre-
     gate unrealized losses of CHF 26 million.
          We hold ABS totaling CHF 1.0 billion, of which CHF 576
     million were received in lieu of payment on a restructured                                      Pre-tax income margin
     asset-backed vehicle, with a corresponding unrealized loss of
     CHF 138 million. Of the remaining CHF 450 million, the                                          in %

     largest position totaled CHF 228 million, with corresponding                                    40

     unrealized losses of CHF 96 million. Of the CHF 222 million
                                                                                                     30
     issued by other vehicles, we had corresponding aggregate
     unrealized losses of CHF 91 million.
                                                                                                     20
          Of the CHF 414 million of corporate securities, most are
     floating-rate notes, with corresponding unrealized and realized                                 10
     losses of CHF 134 million.
                                                                                                       0

                                                                                                                         2005                        2006                        2007

                                                                                                            Pre-tax income margin before securities purchased from our money market funds.
                                                                                                                                              Operating and financial review                          67
                                                                                                                                                                      Asset Management




Assets under management

                                                                                                                                                        in / end of                      % change

                                                                                                                               2007           2006           2005        07 / 06          06 / 05

Assets under management (CHF billion)
Fixed income and money market                                                                                                  178.7         208.3          174.1          (14.2)             19.6
Equity                                                                                                                          38.1           47.0           47.7         (18.9)             (1.5)
Balanced                                                                                                                       284.0         270.2          254.6               5.1            6.1
Private equity 1                                                                                                                34.8           30.2           25.5             15.2           18.4
Diversified strategies 2                                                                                                        66.2           46.4           39.5             42.7           17.5
Fund and alternative solutions 3                                                                                                64.4           60.7           48.0              6.1           26.5
Alternative investments                                                                                                        165.4         137.3          113.0              20.5           21.5
Other                                                                                                                           25.1            7.1            0.0         253.5                 –
Assets under management                                                                                                        691.3         669.9          589.4               3.2           13.7
  of which discretionary assets                                                                                                593.3         573.7          500.3               3.4           14.7
  of which advisory assets                                                                                                      98.0           96.2           89.1              1.9            8.0

Growth in assets under management (CHF billion)
Net new assets                                                                                                                    3.6          50.8           19.6                 –             –
Acquisitions and divestitures                                                                                                   16.6            6.4               –                –             –
Market movements and investment performance                                                                                     14.9           30.6               –                –             –
Currency                                                                                                                       (12.2)          (7.2)              –                –             –
                                                                                                                                        4
Other                                                                                                                           (1.5)          (0.1)              –                –             –
Total other effects                                                                                                             17.8           29.7         107.3                  –             –
Growth in assets under management                                                                                               21.4           80.5         126.9                  –             –

Growth in assets under management (%)
Net new assets                                                                                                                    0.5           8.6            4.2                 –             –
                                                                                                                                        4
Total other effects                                                                                                               2.7           5.0           23.2                 –             –
Growth in assets under management                                                                                                 3.2          13.6           27.4                 –             –

Private equity investments (CHF billion)
Private equity investments                                                                                                        3.3           2.5            1.4             32.0           78.6

The classification of assets is based upon the classification of the fund manager.
1
  Includes alternative investment joint ventures. 2 Includes real estate, leveraged investments and Volaris.   3
                                                                                                                   Includes fund of hedge funds and quantitative strategies.   4
                                                                                                                                                                                   Includes
outflows as a result of the sale of the insurance business.




Net new asset growth rate
                                                                                                 Results detail
In 2007, the growth rate decreased to 0.5% from 8.6% in
2006, primarily reflecting the outflows in money market
                                                                                                 The following provides a comparison of our 2007 results ver-
assets.
                                                                                                 sus 2006 and 2006 results versus 2005.

Gross margin
                                                                                                 Net revenues
The gross margin on assets under management was 36 basis
                                                                                                 Net revenues before private equity and other investment-
points in 2007, compared to 45 basis points in 2006. The
                                                                                                 related gains and securities purchased from our money market
gross margin on assets under management before private
                                                                                                 funds include asset management fees, performance fees and
equity and other investment-related gains and securities pur-
                                                                                                 fees from fund administration services provided to clients. Pri-
chased from our money market funds was 39 basis points in
                                                                                                 vate equity and other investment-related gains include realized
2007, compared to 37 basis points in 2006.
                                                                                                 and unrealized gains and losses on investments and perform-
                                                                                                 ance-related carried interest.
68




     Fixed income and money market, equity, balanced and                2006 vs 2005: Down 28% from CHF 698 million to CHF 502 million
     other                                                              The decrease reflected the strong private equity gains in
     2007 vs 2006: Up 17% from CHF 1,509 million to CHF 1,771 million   2005.
     The increase was mainly due to higher other revenues from
     year-end performance-based fees of CHF 70 million from             Operating expenses
     Hedging-Griffo and higher assets under management from             Compensation and benefits
     emerging markets. Revenues from our balanced funds                 2007 vs 2006: Up 7% from CHF 1,129 million to CHF 1,205 million
     increased due to higher asset management, performance and          The increase was primarily due to higher performance-related
     administrative fees in multi-asset class solutions. The increase   compensation due to the higher revenues in the alternative
     in fixed income and money market revenues was due to higher        investments business, higher salary and related benefits and
     average assets under management in the first half of 2007,         increased deferred share-based compensation from prior-year
     primarily reflecting strong asset inflows into our money market    share awards. Performance-related compensation reflected an
     funds. Lower equity revenues reflected the decline in average      increase in deferred share-based compensation for 2007.
     equity assets under management.                                    2006 compensation included CHF 53 million of severance
     2006 vs 2005: Up 6% from CHF 1,423 million to CHF 1,509 million    costs related to our realignment.
     The increase was mainly due to increased assets under man-         2006 vs 2005: Up 19% from CHF 947 million to CHF 1,129 million
     agement, particularly money market and balanced assets.            The increase reflected ongoing efforts to hire investment tal-
     Other revenues increased due to increased management fees          ent and build product development and distribution capabili-
     from emerging markets.                                             ties, performance-related compensation and severance and
                                                                        other costs associated with our realignment.
     Alternative investments
     2007 vs 2006: Up 23% from CHF 850 million to CHF 1,045 million     General and administrative expenses
     The increase was primarily from diversified strategies and pri-    2007 vs 2006: Down 29% from CHF 853 million to CHF 609 million
     vate equity revenues. Diversified strategies revenues reflected    The decrease was mainly due to a CHF 140 million write-
     increased management fees on our real estate investment            down of intangible assets and CHF 32 million of professional
     portfolios in Switzerland and higher revenues from our lever-      fees related to our realignment and a CHF 22 million provision
     aged investment group. Private equity revenues increased,          relating to a non-proprietary third-party hedge fund product,
     with higher commissions and fees, reflecting the strength of       all in 2006.
     our private equity franchise, and lower funding costs. Fund        2006 vs 2005: Up 54% from CHF 553 million to CHF 853 million
     and alternative solutions revenues increased slightly, with        The increase was mainly driven by the realignment costs of
     higher revenues in quantitative and single-manager strategies,     CHF 172 million, the CHF 22 million provision and higher
     partially offset by lower revenues from multi-manager strate-      information technology and occupancy costs.
     gies. Overall, alternative investments revenues benefited from
     lower funding costs.                                               Commission expenses
     2006 vs 2005: Up 25% from CHF 680 million to CHF 850 million       2007 vs 2006: Up 11% from CHF 370 million to CHF 410 million
     Revenues increased across all product lines. Diversified strate-   Commission expenses increased due to higher assets under
     gies revenues increased, reflecting higher management fees         management.
     from our real estate business. Revenues in our private equity      2006 vs 2005: Up 25% from CHF 295 million to CHF 370 million
     business were led by strong commissions and fees, while rev-       The increase reflected higher assets under management.
     enues increased in fund and alternative solutions, driven by
     higher asset management and administrative fees from our           Personnel
     mutual funds.                                                      In 2007, headcount was up 200 from 2006. In 2007, we con-
                                                                        tinued to hire investment talent and build product development
     Private equity and other investment-related gains                  and distribution capabilities. The acquisition of Hedging-Griffo
     2007 vs 2006: Up 36% from CHF 502 million to CHF 681 million       added 80 employees.
     2007 had strong private equity and other investment-related
     gains, led by gains on Nycomed and Specialized Technology
     Resources and the IPO of E-House. Gains were also recog-
     nized on Advanstar Holdings Corp., CommVault Systems, Inc.
     and Laramie Energy, LLC.
                                                                                              Operating and financial review           69
                                                                                                                 Corporate Center




Corporate Center
Corporate Center includes parent company operations such as Group financing, expenses for projects
sponsored by the Group and certain expenses that have not been allocated to the segments. In addition,
Corporate Center includes consolidation and elimination adjustments required to eliminate intercompany
revenues and expenses.




Summary                                                            vision that have scheduled vesting beyond an employee’s eligi-
                                                                   bility for early retirement. This non-cash charge represented
The following provides a comparison of our 2007 results ver-       the acceleration of compensation expense for share-based
sus 2006 and 2006 results versus 2005.                             awards granted in 2005, principally to employees in the
                                                                   Investment Banking and Asset Management segments, that
Income from continuing operations before taxes                     otherwise would have been recorded generally over vesting
2007 vs 2006: From CHF (315) million to CHF (341) million          periods of three to five years. 2005 also included CHF 128
The slight decrease primarily reflected additional consolidation   million of charges relating to the integration of the banking
adjustments.                                                       businesses.
2006 vs 2005: From CHF (1,212) million to CHF (315) million
The increase primarily reflected a charge in 2005 of CHF 630
million resulting from a change in our accounting for share-
based compensation awards subject to a non-competition pro-




Results

                                                                                                            in              % change

                                                                                     2007      2006      2005     07 / 06   06 / 05

Statements of income (CHF million)
Net revenues                                                                        (104)      (68)     (428)         53        (84)
Provision for credit losses                                                             0        (1)        0        100          –
Compensation and benefits                                                             178       216       818        (18)       (74)
General and administrative expenses                                                   136        83        72         64         15
Commission expenses                                                                   (77)      (51)     (106)        51        (52)
Total other operating expenses                                                         59        32       (34)        84          –
Total operating expenses                                                              237       248       784         (4)       (68)
Income from continuing operations before taxes                                      (341)     (315)    (1,212)         8        (74)
70




     Results summary
                                                                                                                                                                                  Private Banking

                                                                                                 Wealth Management              Corporate & Retail Banking

     in / end of period                                                            2007           2006         2005         2007         2006         2005        2007         2006         2005

     Statements of income (CHF million)
     Net revenues                                                                 9,583          8,181         7,125       3,939        3,497        3,370      13,522       11,678      10,495
     Provision for credit losses                                                        3          (19)            25        (62)         (54)         (96)        (59)         (73)         (71)
     Compensation and benefits                                                    3,177          2,780         2,367       1,352        1,258        1,221       4,529        4,038        3,588
     General and administrative expenses                                          1,770          1,571         1,493          900         811          832       2,670        2,382        2,325
     Commission expenses                                                            768            612           579          128         123          108          896         735          687
     Total other operating expenses                                               2,538          2,183         2,072       1,028          934          940       3,566        3,117        3,012
     Total operating expenses                                                     5,715          4,963         4,439       2,380        2,192        2,161       8,095        7,155        6,600
     Income from continuing operations before taxes                               3,865          3,237         2,661       1,621        1,359        1,305       5,486        4,596        3,966
     Income tax expense                                                                 –             –             –            –            –           –            –            –              –
     Minority interests                                                                 –             –             –            –            –           –            –            –              –
     Income from continuing operations                                                  –             –             –            –            –           –            –            –              –
     Income from discontinued operations                                                –             –             –            –            –           –            –            –              –
     Extraordinary items                                                                –             –             –            –            –           –            –            –              –
     Cumulative effect of accounting changes                                            –             –             –            –            –           –            –            –              –
     Net income                                                                         –             –             –            –            –           –            –            –              –

     Statement of income metrics (%)
     Compensation/revenue ratio                                                     33.2          34.0          33.2         34.3         36.0        36.2         33.5         34.6        34.2
     Non-compensation/revenue ratio                                                 26.5          26.7          29.1         26.1         26.7        27.9         26.4         26.7        28.7
     Cost/income ratio                                                              59.6          60.7          62.3         60.4         62.7        64.1         59.9         61.3        62.9
     Pre-tax income margin                                                          40.3          39.6          37.3         41.2         38.9        38.7         40.6         39.4        37.8
     Effective tax rate                                                                 –             –             –            –            –           –            –            –              –
     Net income margin from continuing operations                                       –             –             –            –            –           –            –            –              –
     Net income margin                                                                  –             –             –            –            –           –            –            –              –

     Utilized economic capital and return
     Average utilized economic capital (CHF million)                              1,592          1,709         1,912       3,076        3,463        3,660       4,668        5,172        5,572

     Pre-tax return on average utilized economic capital (%) 9                    245.2          193.9         142.4         52.8         39.4        35.7       118.4          90.4        72.3
     Post-tax return on average utilized economic capital
     from continuing operations (%) 9                                                   –             –             –            –            –           –            –            –              –
     Post-tax return on average utilized economic capital (%) 9                         –             –             –            –            –           –            –            –              –

     Balance sheet statistics (CHF million)
     Total assets                                                              268,871        229,731       183,213     107,929      111,010      114,904     376,800      340,741      298,117
     Net loans                                                                   76,265        69,156        65,580       99,241       94,514      92,567     175,506      163,670      158,147
     Goodwill                                                                       794            610           613          181         181          180          975         791          793

     Number of employees (full-time equivalents)
     Number of employees                                                         14,300        13,400               –      8,900        8,800             –     23,200       22,200                –

     1
       Core Results include the results of our integrated banking business, excluding revenues and expenses in respect of minority interests without SEI. 2 Balance sheet statistics include
     assets related to discontinued operations. 3 Includes valuation reductions of CHF 3,187 million relating to leveraged finance and structured products. 4 Includes valuation reductions of
     CHF 920 million from securities purchased from our money market funds. 5 Includes CHF 53 million of severance costs relating to the realignment. 6 Includes CHF 140 million of
     intangible asset impairments and CHF 32 million of professional fees relating to the realignment. 7 Does not reflect the valuation reductions from revaluing certain ABS positions in our
     CDO trading business, as we do not consider the impact of these valuation reductions to be material to our economic capital, position risk, VaR or related trends. For further information,
     refer to III – Balance Sheet, Off-balance sheet, Treasury and Risk – Risk management – Revaluation impact on risk metrics. 8 Includes diversification benefit. 9 Calculated using a
     return excluding interest costs for allocated goodwill.
                                                                                                                                   Operating and financial review                 71
                                                                                                                                                           Results summary




                                                                                                                                             1
               Investment Banking                 Asset Management                     Corporate Center                       Core Results                        Credit Suisse



                                                                                                           2
    2007        2006       2005      2007         2006         2005      2007        2006          2005          2007      2006      2005          2007       2006       2005


           3                                 4
  18,958       20,469    15,547      2,577        2,861        2,801     (104)        (68)        (428)         34,953    34,940    28,415        39,735     38,603    30,489
     300         (38)       (73)       (1)            1           0         0          (1)            0           240      (111)     (144)          240       (111)      (144)
                                                          5
  10,191       10,261     8,621      1,205        1,129         947       178         216           818         16,103    15,644    13,974        16,219     15,697    13,974
                                                          6
   3,435        3,077     4,396       609          853          553       136          83            72          6,850     6,395     7,346         6,916      6,445      7,378
   1,383        1,218     1,004       410          370          295       (77)        (51)         (106)         2,612     2,272     1,880         2,612      2,272      1,880
   4,818        4,295     5,400      1,019        1,223         848        59          32           (34)         9,462     8,667     9,226         9,528      8,717      9,258
  15,009       14,556    14,021      2,224        2,352        1,795      237         248           784         25,565    24,311    23,200        25,747     24,414    23,232
   3,649        5,951     1,599       354          508         1,006     (341)       (315)       (1,212)         9,148    10,740     5,359        13,748     14,300      7,401
       –            –          –         –            –            –         –           –            –          1,250     2,389      927          1,250      2,389        927
       –            –          –         –            –            –         –           –            –           138        70       (94)         4,738      3,630      1,948
       –            –          –         –            –            –         –           –            –          7,760     8,281     4,526         7,760      8,281      4,526
       –            –          –         –            –            –         –           –            –             0      3,070     1,310            0       3,070      1,310
       –            –          –         –            –            –         –           –            –             0       (24)        0             0        (24)          0
       –            –          –         –            –            –         –           –            –              –         –       14              –          –         14
       –            –          –         –            –            –         –           –            –          7,760    11,327     5,850         7,760     11,327      5,850



    53.8         50.1       55.5      46.8         39.5         33.8         –           –            –           46.1      44.8      49.2          40.8       40.7       45.8
    25.4         21.0       34.7      39.5         42.7         30.3         –           –            –           27.1      24.8      32.5          24.0       22.6       30.4
    79.2         71.1       90.2      86.3         82.2         64.1         –           –            –           73.1      69.6      81.6          64.8       63.2       76.2
    19.2         29.1       10.3      13.7         17.8         35.9         –           –            –           26.2      30.7      18.9          34.6       37.0       24.3
       –            –          –         –            –            –         –           –            –           13.7      22.2      17.3           9.1       16.7       12.5
       –            –          –         –            –            –         –           –            –           22.2      23.7      15.9          19.5       21.5       14.8
       –            –          –         –            –            –         –           –            –           22.2      32.4      20.6          19.5       29.3       19.2


           7                                                                     8           8             8
  18,940       18,026    15,002      1,677        1,479        1,155      899        1,574        1,767         26,156    25,994    23,009        26,156     25,994    23,009

           7
    20.4         35.4       13.0      24.3         41.8         94.9         –           –            –           36.2      43.7      25.5          53.8       57.4       34.3


       –            –          –         –            –            –         –           –            –           30.6      33.7      21.3          30.6       33.7       21.3
       –            –          –         –            –            –         –           –            –           30.6      45.4      27.1          30.6       45.4       27.1



1,140,740 1,046,557 957,513         27,784       20,448       21,572 (201,947) (167,794)         54,568 1,343,377 1,239,952 1,331,770 1,360,680 1,255,956 1,339,052
  64,892       44,285    34,762          –            –            –      136         172        12,762        240,534   208,127   205,671       240,534    208,127   205,671
   7,465        7,809     8,246      2,442        2,423        2,567         –           –        1,326         10,882    11,023    12,932        10,882     11,023    12,932



  20,600       18,700          –     3,600        3,400            –      700         600             –         48,100    44,900    44,600        48,100     44,900    44,600
72




     Assets under Management




     Assets under management                                                   Advisory assets include assets placed with us where the
                                                                           client is provided access to investment advice but retains dis-
     Assets under management comprise assets which are placed              cretion over investment decisions.
     with us for investment purposes and include discretionary and             As of December 31, 2007, the Group’s assets under man-
     advisory counterparty assets.                                         agement amounted to CHF 1,554.7 billion, up CHF 69.6 bil-
          Discretionary assets are assets for which the customer           lion, or 4.7%, compared to December 31, 2006, reflecting
     fully transfers the discretionary power to a Credit Suisse entity     net new asset inflows in Wealth Management, positive market
     with a management mandate. Discretionary assets are                   movements and the acquisition of Hedging-Griffo. The
     reported in the segment in which the investment advice is pro-        increase was partially offset by adverse foreign exchange-
     vided, as well as in the segment in which distribution takes          related movements and corporate cash now only recorded in
     place. Any duplication of assets managed on behalf of other           client assets.
     segments is deducted at the Group level.



     Assets under management and client assets

                                                                                                       end of                       % change

                                                                         2007      2006      2005      2004     07 / 06   06 / 05   05 / 04

     Assets under management (CHF billion)
       Wealth Management                                                 838.6    784.2      693.3     567.8        6.9     13.1       22.1
       Corporate & Retail Banking                                        156.8    156.1      144.3     123.7        0.0       8.2      16.7
     Private Banking                                                     995.4    940.3      837.6     691.5        5.9     12.3       21.1
     Asset Management                                                    691.3    669.9      589.4     462.5        3.2     13.7       27.4
     Assets managed on behalf of other segments                      (132.0)     (125.1)   (107.6)     (86.0)       5.5     16.3       25.1
     Assets under management                                         1,554.7     1,485.1   1,319.4   1,068.0        4.7     12.6       23.5
       of which discretionary assets                                     678.8    656.2      578.4     443.7        3.4     13.5       30.4
       of which advisory assets                                          875.9    828.9      741.0     624.3        5.7     11.9       18.7

     Client assets (CHF billion)
       Wealth Management                                                 928.8    848.0      743.4         –        9.5     14.1          –
       Corporate & Retail Banking                                        230.6    221.7      208.5         –        4.0       6.3         –
     Private Banking                                                 1,159.4     1,069.7     951.9     780.0        8.4     12.4       22.0
     Asset Management                                                    721.7    676.4      596.0     468.5        6.7     13.5       27.2
     Assets managed on behalf of other segments                      (132.0)     (125.1)   (107.6)     (86.0)       5.5     16.3       25.1
     Client assets                                                   1,749.1     1,621.0   1,440.3   1,162.5        7.9     12.5       23.9
                                                                                                                                          Operating and financial review                          73
                                                                                                                                                       Asset under Management




Growth in assets under management

in                                                                                                                                                        2007           2006            2005

Growth in assets under management (CHF billion)
     Wealth Management                                                                                                                                     50.2           50.5            42.8
     Corporate & Retail Banking                                                                                                                             3.3             1.7            7.6
Private Banking                                                                                                                                            53.5           52.2            50.4
Asset Management                                                                                                                                            3.6           50.8            19.6
Assets managed on behalf of other segments                                                                                                                 (6.7)          (7.6)          (12.6)
Net new assets                                                                                                                                             50.4           95.4            57.4

                                                                                                                                                                   1
     Wealth Management                                                                                                                                      4.2           40.4            82.7
     Corporate & Retail Banking                                                                                                                            (2.5)          10.1            13.0
Private Banking                                                                                                                                             1.7           50.5            95.7
                                                                                                                                                                   2
Asset Management                                                                                                                                           17.8           29.7           107.3
Assets managed on behalf of other segments                                                                                                                 (0.3)          (9.9)           (9.0)
Other effects                                                                                                                                              19.2           70.3           194.0

     Wealth Management                                                                                                                                     54.4           90.9           125.5
     Corporate & Retail Banking                                                                                                                             0.8           11.8            20.6
Private Banking                                                                                                                                            55.2         102.7            146.1
Asset Management                                                                                                                                           21.4           80.5           126.9
Assets managed on behalf of other segments                                                                                                                 (7.0)        (17.5)           (21.6)
Growth in assets under management                                                                                                                          69.6         165.7            251.4

Growth in assets under management (%)
     Wealth Management                                                                                                                                      6.4             7.3            7.5
     Corporate & Retail Banking                                                                                                                             2.1             1.2            6.1
Private Banking                                                                                                                                             5.7             6.2            7.3
Asset Management                                                                                                                                            0.5             8.6            4.2
Assets managed on behalf of other segments                                                                                                                  5.4             7.1           14.7
Net new assets                                                                                                                                              3.4             7.2            5.4

                                                                                                                                                                   1
     Wealth Management                                                                                                                                      0.5             5.8           14.6
     Corporate & Retail Banking                                                                                                                            (1.6)            7.0           10.5
Private Banking                                                                                                                                             0.2             6.0           13.8
                                                                                                                                                                   2
Asset Management                                                                                                                                            2.7             5.0           23.2
Assets managed on behalf of other segments                                                                                                                  0.2             9.2           10.5
Other effects                                                                                                                                               1.3             5.3           18.2

     Wealth Management                                                                                                                                      6.9           13.1            22.1
     Corporate & Retail Banking                                                                                                                             0.5             8.2           16.6
Private Banking                                                                                                                                             5.9           12.2            21.1
Asset Management                                                                                                                                            3.2           13.6            27.4
Assets managed on behalf of other segments                                                                                                                  5.6           16.3            25.2
Growth in assets under management                                                                                                                           4.7           12.5            23.6

1                                                                                                                                 2
  The reduction in assets under management also reflects CHF 21.6 billion of corporate cash now reported only in client assets.       Includes outflows as a result of the sale of the
insurance business.
74




     Assets under management by currency

     end of period                                                                      USD       EUR       CHF       Other     Total

     2007 (CHF billion)
     Wealth Management                                                                 333.8     244.3     156.1      104.4     838.6
     Asset Management                                                                  206.4     105.9     297.9       81.1     691.3

     2007 (% of total)
     Wealth Management                                                                  39.8      29.1      18.6       12.5     100.0
     Asset Management                                                                   29.9      15.3      43.1       11.7     100.0




     In Private Banking, assets under management were up CHF              We recorded net new asset inflows of CHF 50.4 billion in
     55.1 billion, or 5.9%, compared to the end of 2006. In Asset    2007. Private Banking contributed CHF 53.5 billion to net
     Management, the increase was CHF 21.4 billion, or 3.2%,         new assets, an increase of CHF 1.3 billion from 2006. Asset
     compared to the end of 2006.                                    Management had net new asset inflows of CHF 3.6 billion,
                                                                     with CHF 25.4 billion of net new assets in alternative invest-
                                                                     ments, CHF 6.7 billion in balanced assets and CHF 4.7 billion
     Net new assets                                                  in fixed income assets mostly offset by outflows of CHF 28.4
                                                                     billion in money market assets.
     Net new assets include individual cash payments, security
     deliveries and cash flows resulting from loan increases or
     repayments. Interest and dividend income credited to clients,   Client assets
     commissions, interest and fees charged for banking services
     are not included as they do not reflect success in acquiring    Client assets is a broader measure than assets under man-
     assets under management. Furthermore, changes due to cur-       agement as it includes transactional and custody accounts
     rency and market movements as well as asset inflows and out-    (assets held solely for transaction-related or safekeeping/cus-
     flows due to the acquisition or divestiture of businesses are   tody purposes) and assets of corporate clients and public insti-
     not part of net new assets.                                     tutions used primarily for cash management or transaction-
                                                                     related purposes.
                                                                                                  Operating and financial review           75
                                                                                                        Critical accounting estimates




Critical accounting estimates




In order to prepare the consolidated financial statements in         participants would use in pricing the asset or liability (including
accordance with US GAAP, management is required to make              assumptions about risk). These instruments include certain
certain accounting estimates to ascertain the value of assets        high-yield debt securities, distressed debt securities, certain
and liabilities. These estimates are based upon judgment and         CDOs, certain OTC derivatives, certain asset-backed and
the information available at the time, and actual results may        mortgage-backed securities, non-traded equity securities and
differ materially from these estimates. Management believes          private equity and other long-term investments.
that the estimates and assumptions used in the preparation of            We have availed ourselves of the simplification in account-
the consolidated financial statements are prudent, reasonable        ing offered under Statement of Financial Accounting Stan-
and consistently applied. For further information on significant     dards (SFAS) No. 159, “The Fair Value Option for Financial
accounting policies and new accounting pronouncements,               Assets and Financial Liabilities – Including an amendment of
refer to Note 1 – Summary of significant accounting policies         FASB Statement No. 115” (SFAS 159), primarily in the
and Note 2 – Recently issued accounting standards in V –             Investment Banking and Asset Management segments. This
Consolidated financial statements – Credit Suisse Group. Note        has been accomplished generally by electing the fair value
references are to the consolidated financial statements of the       option, both at initial adoption and for subsequent transac-
Group. For financial information related to the Bank, see the        tions, on items impacted by the hedge accounting require-
corresponding note in the consolidated financial statements of       ments of SFAS No. 133, “Accounting for Derivative Instru-
the Bank.                                                            ments and Hedging Activities.” That is, for instruments for
    We believe that the critical accounting estimates discussed      which there was an inability to achieve hedge accounting and
below involve the most complex judgments and assessments.            we are economically hedged, we have elected the fair value
                                                                     option. Also, where we manage an activity on a fair value basis
                                                                     but previously have been unable to achieve fair value account-
Fair value                                                           ing, we have utilized the fair value option to align our risk man-
                                                                     agement accounting to our financial reporting.
A significant portion of our assets and liabilities are carried at       Control processes are applied to ensure that the fair value
fair value. The fair value of the majority of these financial        of the financial instruments reported in the consolidated finan-
instruments is based on quoted prices in active markets or           cial statements, including those derived from pricing models,
observable inputs.                                                   are appropriate and determined on a reasonable basis.
    In addition, we hold financial instruments for which no              These control processes include the review and approval of
prices are available and which have little or no observable          new instruments, review of profit and loss at regular intervals,
inputs. For these instruments, the determination of fair value       risk monitoring and review, price verification procedures and
requires subjective assessment and varying degrees of judg-          reviews of models used to estimate the fair value of financial
ment depending on liquidity, concentration, pricing assump-          instruments by senior management and personnel with rele-
tions and the risks affecting the specific instrument. In such       vant expertise who are independent of the trading and invest-
circumstances, valuation is determined based on manage-              ment functions.
ment’s own assumptions about the assumptions that market
76




         In connection with ongoing control processes, we identified       of many of these matters, particularly those cases in which the
     mismarks and pricing errors by a small number of traders in           matters are brought on behalf of various classes of claimants,
     certain ABS positions in our CDO trading business in Invest-          seek damages of unspecified or indeterminate amounts or
     ment Banking. For further information, refer to Credit Suisse –       involve novel legal claims. In presenting our consolidated
     Revaluing of certain asset-backed securities.                         financial statements, management makes estimates regarding
         In conjunction with the adoption of SFAS 159, on January          the outcome of legal, regulatory and arbitration matters and
     1, 2007, we early adopted SFAS No. 157, “Fair Value Mea-              takes a charge to income when losses with respect to such
     surements”. For further information on fair value, refer to Note      matters are probable and can be reasonably estimated in
     2 – Recently issued accounting standards and Note 33 –                accordance with SFAS No. 5 “Accounting for contingencies”
     Financial instruments in V – Consolidated financial statements        (SFAS 5). Charges, other than those taken periodically for
     – Credit Suisse Group.                                                costs of defense, are not established for matters when losses
                                                                           cannot be reasonably estimated. Estimates, by their nature,
                                                                           are based on judgment and currently available information and
     Variable interest entities                                            involve a variety of factors, including, but not limited to, the
                                                                           type and nature of the litigation, claim or proceeding, the
     As a normal part of our business, we engage in various trans-         progress of the matter, the advice of legal counsel and other
     actions that include entities which are considered variable           advisers, our defenses and experience in similar cases or pro-
     interest entities (VIE). A VIE is an entity that typically lacks      ceedings as well as our assessment of matters, including set-
     sufficient equity to finance its activities without additional sub-   tlements, involving other defendants in similar or related cases
     ordinated financial support or is structured such that the hold-      or proceedings. For further information on legal proceedings,
     ers of the voting rights do not substantively participate in the      refer to IX – Additional information – Legal proceedings and
     gains and losses of the entity. Such entities are required to be      Note 37 – Litigation in V – Consolidated financial statements –
     assessed for consolidation under Financial Accounting Stan-           Credit Suisse Group.
     dards Board (FASB) Interpretation (FIN) No. 46, as revised by
     FIN No. 46(R), “Consolidation of Variable Interest Entities – an      Allowances and provisions for losses
     interpretation of ARB No. 51” (FIN 46(R)), which requires that        As a normal part of our business, we are exposed to credit
     the primary beneficiary consolidate the VIE. The primary ben-         risks through our lending relationships, commitments and let-
     eficiary is the party that will absorb the majority of expected       ters of credit as well as counterparty risk on derivatives, for-
     losses, receive the majority of the expected residual returns,        eign exchange and other transactions. Credit risk is the risk
     or both. We consolidate all VIEs where we are the primary             that a borrower or counterparty is unable to meet its financial
     beneficiary. VIEs may be sponsored by us, unrelated third par-        obligations. In the event of a default, we generally incur a loss
     ties or clients. Application of the accounting requirements for       equal to the amount owed by the counterparty, less a recovery
     consolidation of VIEs, initially and if certain events occur that     amount resulting from foreclosure, liquidation of collateral or
     require us to reassess whether consolidation is required, can         restructuring of the counterparty’s obligation. Allowances for
     require the exercise of significant management judgment. For          loan losses are described in Note 1 – Summary of significant
     further information on VIEs, refer to Note 32 – Transfer and          accounting policies and Note 17 – Loans in V – Consolidated
     servicing of financial assets in V – Consolidated financial           financial statements – Credit Suisse Group. The allowances
     statements – Credit Suisse Group.                                     for loan losses are considered adequate to absorb credit
                                                                           losses existing at the dates of the consolidated balance
                                                                           sheets. These allowances are for probable credit losses inher-
     Contingencies and loss provisions                                     ent in existing exposures in accordance with SFAS 5 and
                                                                           credit exposures specifically identified as impaired.
     A contingency is an existing condition that involves a degree of
     uncertainty that will ultimately be resolved upon the occur-          Inherent loan loss allowance
     rence of future events.                                               The inherent loan loss allowance is for all credit exposures not
                                                                           specifically identified as impaired and that, on a portfolio basis,
     Litigation contingencies                                              are considered to contain probable inherent loss in accordance
     From time to time, we are involved in a variety of legal, regu-       with SFAS 5. The loan valuation allowance is established by
     latory and arbitration matters in connection with the conduct of      analyzing historical and current default probabilities, historical
     our businesses. It is inherently difficult to predict the outcome     recovery assumptions and internal risk ratings. The methodol-
                                                                                                  Operating and financial review           77
                                                                                                        Critical accounting estimates




ogy for investment banking adjusts the rating-specific default       financial condition of a counterparty and likelihood of repay-
probabilities to incorporate not only historic third-party data      ment. The failure to identify certain indicators or give them
over a period but also those implied from current quoted credit      proper weight could lead to a different conclusion about the
spreads.                                                             credit risk. The assessment of credit risk is subject to inherent
     Many factors are evaluated in estimating probable credit        limitations with respect to the completeness and accuracy of
losses inherent in existing exposures. These factors include:        relevant information (for example, relating to the counterparty,
the volatility of default probabilities; rating changes; the mag-    collateral or guarantee) that is available at the time of the
nitude of the potential loss; internal risk ratings; geographic,     assessment. Significant judgment is exercised in determining
industry and other economic factors; and imprecision in the          the amount of the provision. Whenever possible, independent,
methodologies and models used to estimate credit risk. Over-         verifiable data or our own historical loss experience is used in
all, credit risk indicators are also considered, such as trends in   models for estimating loan losses. However, a significant
internal risk-rated exposures, classified exposures, cash-basis      degree of uncertainty remains when applying such valuation
loans, recent loss experience and forecasted write-offs, as          techniques. Under our loan policy, the classification of loan
well as industry and geographic concentrations and current           status also has a significant impact on the subsequent
developments within those segments or locations. Our current         accounting for interest accruals.
business strategy and credit process, including credit                   For loan portfolio disclosures, valuation adjustment disclo-
approvals and limits, underwriting criteria and workout proce-       sures and certain other information relevant to the evaluation
dures, are also important factors.                                   of credit risk and credit risk management, refer to III – Balance
     Significant judgment is exercised in the evaluation of these    sheet, Off-balance sheet, Treasury and Risk – Risk Manage-
factors. For example, estimating the amount of potential loss        ment.
requires an assessment of the period of the underlying data.
Data that does not capture a complete credit cycle may com-
promise the accuracy of loss estimates. Determining which            Goodwill impairment
external data relating to default probabilities should be used
and when they should be used, also requires judgment. The            As a result of acquisitions, we have recorded goodwill as an
use of market indices and ratings that do not sufficiently corre-    asset in our consolidated balance sheets, the most significant
late to our specific exposure characteristics could also affect      component of which arose from the acquisition of Donaldson,
the accuracy of loss estimates. Evaluating the impact of             Lufkin & Jenrette Inc. Goodwill was CHF 10.9 billion and CHF
uncertainties regarding macroeconomic and political condi-           11.0 billion as of December 31, 2007 and 2006, respectively.
tions, currency devaluations on cross-border exposures,              The decrease in goodwill in 2007 was primarily due to foreign
changes in underwriting criteria, unexpected correlations            exchange fluctuations in goodwill denominated in US dollars.
among exposures and other factors all require significant judg-           Recorded goodwill is not amortized, rather it is reviewed
ment. Changes in our estimates of probable credit losses             for possible impairment on an annual basis and at any other
inherent in the portfolio could have an impact on the provision      time that events or circumstances indicate that the carrying
and result in a change in the allowance.                             value of goodwill may not be recoverable. Circumstances that
                                                                     could trigger an impairment test include, but are not limited to:
Specific loan loss allowances                                        a significant adverse change in the business climate or legal
We make provisions for specific credit losses on impaired            factors; an adverse action or assessment by a regulator; unan-
loans based on regular and detailed analysis of each loan in         ticipated competition; loss of key personnel; the likelihood that
the portfolio. This analysis includes an estimate of the realiz-     a reporting unit or significant portion of a reporting unit will be
able value of any collateral, the costs associated with obtain-      sold or otherwise disposed of; results of testing for recover-
ing repayment and realization of any such collateral, the coun-      ability of a significant asset group within a reporting unit; and
terparty’s overall financial condition, resources and payment        recognition of a goodwill impairment loss in the financial state-
record, the extent of our other commitments to the same              ments of a subsidiary that is a component of a reporting unit.
counterparty and prospects for support from any financially               For the purpose of testing goodwill for impairment, each
responsible guarantors.                                              reporting unit is assessed individually. A reporting unit is an
    The methodology for calculating specific allowances              operating segment or one level below an operating segment,
involves judgments at many levels. First, it involves the early      also referred to as a component. A component of an operating
identification of deteriorating credits. Extensive judgment is       segment is deemed to be a reporting unit if the component
required in order to properly evaluate the various indicators of     constitutes a business for which discrete financial information
78




     is available and management regularly reviews the operating          Deferred tax valuation allowances
     results of that component. In Private Banking, Wealth Man-           Deferred tax assets and liabilities are recognized for the esti-
     agement and Corporate & Retail Banking are considered to be          mated future tax effects of operating loss carry-forwards and
     reporting units, and Investment Banking is considered to be          temporary differences between the carrying amounts of exist-
     one reporting unit. In Asset Management, the two primary             ing assets and liabilities and their respective tax bases at the
     business areas, traditional asset management and alternative         dates of the consolidated balance sheets.
     investments, are considered to be reporting units. If the fair           The realization of deferred tax assets on temporary differ-
     value of a reporting unit exceeds its carrying value, there is no    ences is dependent upon the generation of taxable income
     goodwill impairment. Factors considered in determining the           during the periods in which those temporary differences
     fair value of reporting units include, among other things: an        become deductible. The realization of such deferred tax assets
     evaluation of recent acquisitions of similar entities in the mar-    on net operating losses is dependent upon the generation of
     ket place; current share values in the market place for similar      taxable income during the periods prior to their expiration, if
     publicly traded entities, including price multiples; recent trends   applicable. Management periodically evaluates whether
     in our share price and those of competitors; estimates of our        deferred tax assets can be realized. If management considers
     future earnings potential; and the level of interest rates.          it more likely than not that all or a portion of a deferred tax
         Estimates of our future earnings potential, and that of the      asset will not be realized, a corresponding valuation allowance
     reporting units, involve considerable judgment, including man-       is established. In evaluating whether deferred tax assets can
     agement’s view on future changes in market cycles, the antic-        be realized, management considers projected future taxable
     ipated result of the implementation of business strategies,          income, the scheduled reversal of deferred tax liabilities and
     competitive factors and assumptions concerning the retention         tax planning strategies.
     of key employees. Adverse changes in the estimates and                   This evaluation requires significant management judgment,
     assumptions used to determine the fair value of the Group’s          primarily with respect to projected taxable income. The esti-
     reporting units may result in a goodwill impairment charge in        mate of future taxable income can never be predicted with
     the future.                                                          certainty. It is derived from budgets and strategic business
         During 2007 and 2006, no goodwill impairment charges             plans but is dependent on numerous factors, some of which
     were recorded. For further information on goodwill, refer to         are beyond management’s control. Substantial variance of
     Note 19 – Goodwill in V – Consolidated financial statements –        actual results from estimated future taxable profits, or changes
     Credit Suisse Group.                                                 in our estimate of future taxable profits, could lead to changes
                                                                          in deferred tax assets being realizable, or considered realiz-
                                                                          able, and would require a corresponding adjustment to the val-
     Taxes                                                                uation allowance.
                                                                              As of December 31, 2007 and 2006, we had deferred tax
     Uncertainty of income tax positions                                  assets resulting from temporary differences and from net
     The Group has applied the guidance contained in FIN No. 48,          operating losses that could reduce taxable income in future
     “Accounting for Uncertainty in Income Taxes – an interpreta-         periods. The consolidated balance sheets as of December 31,
     tion of FASB Statement No. 109” (FIN 48), to evaluate                2007 and 2006, included gross deferred tax assets of CHF
     income tax positions.                                                7.7 billion and CHF 6.3 billion, respectively, and gross
         Significant judgment is required in determining whether it       deferred tax liabilities of CHF 1.3 billion and CHF 1.1 billion,
     is more likely than not that an income tax position will be sus-     respectively. The increase from 2006 to 2007 was primarily
     tained upon examination, including resolution of any related         due to the increase in deferred tax assets on net operating
     appeals or litigation processes, based on the technical merits       losses. Due to uncertainty concerning our ability to generate
     of the position. Further judgment is then required to determine      the necessary amount and mix of taxable income in future
     the amount of benefit eligible for recognition in the consoli-       periods, a valuation allowance was recorded against deferred
     dated financial statements.                                          tax assets in the amount of CHF 1.4 billion and CHF 0.7 bil-
         For further information on FIN 48, refer to Note 2 –             lion as of December 31, 2007 and 2006, respectively, which
     Recently issued accounting standards and Note 26 – Tax in V          related primarily to deferred tax assets on net operating loss
     – Consolidated financial statements – Credit Suisse Group.           carry-forwards and loans.
                                                                              For further information on deferred tax assets, refer to
                                                                          Note 26 – Tax in V – Consolidated financial statements –
                                                                          Credit Suisse Group.
                                                                                                Operating and financial review        79
                                                                                                     Critical accounting estimates




Pension plans                                                       based on the plan asset mix and observed historical returns. In
                                                                    calculating pension expense and in determining the expected
The Group                                                           rate of return, we use the market-related value of assets.
The Group covers pension requirements, in both Swiss and                The expected weighted-average rate of return on plan
non-Swiss locations, through various defined benefit pension        assets as of September 30, 2007 and September 30, 2006,
plans and defined contribution pension plans.                       was 5% for the Swiss plans and 7.2% for the international
     Our funding policy with respect to the non-Swiss pension       plans. For the year ended December 31, 2007, if the
plans is consistent with local government and tax require-          expected rate of return had been increased 1%, net pension
ments. In certain non-Swiss locations, the amount of our con-       expense for the Swiss plans would have decreased CHF 115
tribution to defined contribution pension plans is linked to the    million and net pension expense for the international plans
return on equity of the respective segments and, as a result,       would have decreased CHF 22 million.
the amount of our contribution may differ materially from year          The discount rate used in determining the benefit obliga-
to year.                                                            tion is based either upon high-quality corporate bond rates or
     The calculation of the expense and liability associated with   government bond rates plus a premium in order to approximate
the defined benefit pension plans requires an extensive use of      high-quality corporate bond rates. In estimating the discount
assumptions, which include the discount rate, expected return       rate, we take into consideration the relationship between the
on plan assets and rate of future compensation increases as         corporate bonds and the timing and amount of the future cash
determined by us. Management determines these assumptions           outflows of its benefit payments. The average discount rate
based upon currently available market and industry data and         used for Swiss plans increased 0.7% from 3.3% as of Sep-
historical performance of the plans and their assets. Manage-       tember 30, 2006, to 4.0% as of September 30, 2007, due
ment also consults with an independent actuarial firm to assist     mainly to an increase in Swiss bond market rates. The average
in selecting appropriate assumptions and valuing its related lia-   discount rate used for international plans increased 0.7% from
bilities. The actuarial assumptions used by us may differ mate-     5.2% as of September 30, 2006, to 5.9% as of September
rially from actual results due to changing market and economic      30, 2007, due mainly to an increase in bond market rates in
conditions, higher or lower withdrawal rates or longer or           the EU, the UK and the US. The discount rate affects both the
shorter life spans of the participants. Any such differences        pension expense and the PBO. For the year ended December
could have a significant impact on the amount of pension            31, 2007, a 1% decline in the discount rate for the Swiss
expense recorded in future years.                                   plans would have resulted in an increase in the PBO of CHF
     Following the implementation of SFAS No. 158, ‘‘Employ-        1,700 million and an increase in pension expense of CHF 141
ers’ Accounting for Defined Benefit Pension and Other               million, and a 1% increase in the discount rate would have
Postretirement Plans — an amendment of FASB Statements              resulted in a decrease in the PBO of CHF 1,357 million and a
No. 87, 88, 106, and 132(R)” (SFAS 158), the funded status          decrease in the pension expense of CHF 35 million. A 1%
of our defined benefit pension and other post-retirement            decline in the discount rate for the international plans would
defined benefit plans are recorded in the consolidated balance      have resulted in an increase in the PBO of CHF 679 million
sheets. The actuarial gains and losses, prior service costs and     and an increase in pension expense of CHF 70 million, and a
net transition assets or obligations are recognized in equity as    1% increase in the discount rate would have resulted in a
a component of accumulated other comprehensive                      decrease in the PBO of CHF 498 million and a decrease in
income/(loss) (AOCI).                                               the pension expense of CHF 56 million.
     The projected benefit obligations (PBO) of our total               Recognized actuarial losses are amortized over the aver-
defined benefit pension plans include an amount related to          age remaining service period of active employees expected to
future salary increases of CHF 1,296 million. The accumu-           receive benefits under the plan, which is approximately 10
lated benefit obligation (ABO) is defined as the PBO less the       years for the Swiss plans and 7 to 25 years for the interna-
amount related to future salary increases. The difference           tional plans. The expense associated with the amortization of
between the fair value of plan assets and the ABO was an            net actuarial losses for the years ended December 31, 2007,
overfunding of CHF 1,601 million for 2007.                          2006 and 2005 was CHF 122 million, CHF 121 million and
     We are required to estimate the expected return on plan        CHF 48 million, respectively. The amortization of recognized
assets, which is then used to compute pension cost recorded         actuarial losses for the year ending December 31, 2008,
in the consolidated statements of income. Estimating future         which is assessed at the beginning of the plan year, is
returns on plan assets is particularly subjective, as the esti-     expected to be CHF 27 million, net of tax. The amount by
mate requires an assessment of possible future market returns       which the actual return on plan assets differs from our esti-
80




     mate of the expected return on those assets further impacts        periodic pension cost would have been 4.0% and 3.3%,
     the amount of net recognized actuarial losses, resulting in a      respectively. As of the measurement date of September 30,
     higher or lower amount of amortization expense in periods          2007, the weighted average discount rates used in the meas-
     after 2008.                                                        urement of the benefit obligation and the net periodic pension
         For further information on our pension benefits, refer to      costs for the international single-employer defined benefit
     Note 29 – Pension and other post-retirement benefits in V –        pension plans were 5.9% and 5.2%, respectively. A 1%
     Consolidated financial statements – Credit Suisse Group.           decline in the discount rate for the international single-
                                                                        employer plans would have resulted in an increase in PBO of
     The Bank                                                           CHF 670 million and an increase in pension expense of CHF
     The Bank covers pension requirements for its employees in          68 million, and a 1% increase in the discount rate would have
     Switzerland through participation in a defined benefit pension     resulted in a decrease in PBO of CHF 492 million and a
     plan sponsored by Credit Suisse Group. Various legal entities      decrease in pension expense by CHF 54 million.
     within the Group participate in the plan, and the plan is set up       The Bank does not recognize any amortization of actuarial
     as an independent trust domiciled in Zurich. Credit Suisse         losses and prior service cost for the Group pension plan. Actu-
     Group accounts for the plan as a single employer defined ben-      arial losses and prior service cost related to the international
     efit pension plan and uses the projected unit credit actuarial     single-employer defined benefit pension plans are amortized
     method to determine the net periodic pension expense, PBO,         over the average remaining service period of active employees
     ABO and the related amounts recognized in the consolidated         expected to receive benefits under the plan. The expense
     balance sheets. Following the implementation of SFAS 158,          associated with the amortization of unrecognized net actuarial
     the funded status of the plan is recorded in the consolidated      losses and prior service cost for the years ended December
     balance sheets. The previously unrecognized actuarial gains        31, 2007, 2006 and 2005 was CHF 76 million, CHF 72 mil-
     and losses and prior service costs are recognized in equity as     lion and CHF 49 million, respectively. The amortization of rec-
     a component of AOCI.                                               ognized actuarial losses for the year ending December 31,
          The Bank accounts for the Group plan on a defined contri-     2008, which is assessed at the beginning of the plan year, is
     bution basis whereby it only recognizes the amounts required       expected to be CHF 25 million, net of tax.
     to be contributed to the plan during the period as net periodic        For further information with respect to the Bank’s pension
     pension expense and only recognizes a liability for any contri-    benefits associated with the Credit Suisse Group plan and
     butions due and unpaid. No other expense or balance sheet          international single-employer defined benefit and defined con-
     amounts related to the plan are recognized by the Bank.            tribution pension plans, refer to Note 27 – Pension and other
          The Bank covers pension requirements in non-Swiss, or         post-retirement benefits in VII – Consolidated financial state-
     international, locations through the participation in various      ments – Credit Suisse (Bank).
     pension plans, which are accounted for as single-employer
     defined benefit pension plans or defined contribution pension
     plans.
          As of the measurement date of September 30, 2007, if
     the Bank had accounted for the Group plan as a defined ben-
     efit plan, the expected long-term rate of return on plan assets
     would have been 5.0%. As of the measurement date of Sep-
     tember 30, 2007, the weighted-average expected long-term
     rate of return on plan assets for the international single-
     employer defined benefit pension plans was 7.3%.
          For additional information on how the assumptions are
     determined, refer to The Group.
          The discount rate used in determining the benefit obliga-
     tion is based either upon high-quality corporate bond rates or
     government bond rates plus a premium in order to approximate
     high-quality corporate bond rates. As of the measurement
     date of September 30, 2007, if the Bank had accounted for
     the Group plan as a defined benefit plan, the discount rate
     used in the measurement of the benefit obligation and net
III
Balance sheet,        82 Balance sheet, off-balance sheet
                         and other contractual obligations
Off-balance sheet,
                      92 Treasury management
Treasury and Risk
                     104 Risk management
82




     Balance sheet, off-balance sheet and
     other contractual obligations
     Most of our transactions are recorded on our balance sheet,                     adoption of the fair value option in accordance with SFAS
     however we also enter into a number of transactions that may                    159. Total assets were CHF 1,360.7 billion as of the end of
     give rise to both on- and off-balance sheet exposure. These                     2007, up from CHF 1,256.0 billion as of the end of 2006,
     transactions include derivative transactions, off-balance sheet                 driven primarily by increases in Investment Banking assets.
     arrangements and certain contractual obligations.                               Trading assets increased CHF 81.3 billion, reflecting an
         We enter into derivative contracts in the normal course of                  increase of CHF 45.6 billion in equity securities and CHF 40.3
     business for market making, positioning and arbitrage pur-                      billion in derivative instruments, partly offset by a decrease of
     poses, as well as for our own risk management needs, includ-                    CHF 5.4 billion in debt securities. Net loans increased CHF
     ing mitigation of interest rate, foreign currency and credit risk.              32.4 billion, reflecting business and market developments in
         We enter into off-balance sheet arrangements in the ordi-                   Investment Banking as well as business growth in Private
     nary course of business. Off-balance sheet arrangements are                     Banking. Central bank funds sold, securities purchased under
     transactions or other contractual arrangements with, or for the                 resale agreements and securities borrowing transactions
     benefit of, an entity that is not consolidated. These transac-                  decreased CHF 22.3 billion, mainly driven by a decline in busi-
     tions include guarantees and similar arrangements, retained or                  ness activity.
     contingent interests in assets transferred to an unconsolidated                      Total liabilities were CHF 1,317.5 billion as of the end of
     entity, and obligations and liabilities (including contingent obli-             2007, up from CHF 1,212.4 billion as of the end of 2006.
     gations and liabilities) under variable interests in unconsoli-                 Customer deposits increased CHF 44.6 billion, mainly driven
     dated entities that provide financing, liquidity, market risk or                by increased time deposits. Trading liabilities increased CHF
     credit risk support.                                                            3.4 billion, mainly due to an increase of CHF 20.5 billion in
         The increase in our balance sheet in 2007 reflected the                     derivative instruments, partly offset by a decrease of CHF
     continued growth of our business and was impacted by the                        17.1 billion in short positions.


     Balance sheet summary

                                                                                                                                       end of   % change

                                                                                                                            2007       2006     07 / 06

     Assets (CHF million)
     Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions          296,709   319,048          (7)
     Trading assets                                                                                                       532,083   450,780          18
     Net loans                                                                                                            240,534   208,127          16
     All other assets                                                                                                     291,354   278,001           5
     Total assets                                                                                                       1,360,680 1,255,956           8

     Liabilities and shareholders’ equity (CHF million)
     Due to banks                                                                                                          90,864    97,514          (7)
     Customer deposits                                                                                                    335,505   290,864          15
     Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions        300,381   288,444           4
     Trading liabilities                                                                                                  201,809   198,422           2
     Long-term debt                                                                                                       160,157   147,832           8
     All other liabilities                                                                                                228,765   189,294          21
     Total liabilities                                                                                                  1,317,481 1,212,370           9
     Total shareholders’ equity                                                                                            43,199    43,586          (1)
     Total liabilities and shareholders’ equity                                                                         1,360,680 1,255,956           8
                                                                      Balance sheet, Off-balance sheet, Treasury and Risk                 83
                                                             Balance sheet, off-balance sheet and other contractual obligations




Impact on results of the events in the mortgage                    exists. We typically endeavor to distribute the loan prior to the
and credit markets                                                 closing and funding of the loan. Once a loan has closed, what-
                                                                   ever portion we continue to hold is a funded commitment.
Our results in 2007 reflected the turmoil in the mortgage and          Our unfunded non-investment grade loan commitments
credit markets, which emerged from the dislocation of the US       (both leveraged loan and bridge) were CHF 25.3 billion (USD
subprime mortgage market and subsequently spread to other          22.4 billion) as of the end of 2007. Our funded non-invest-
markets and asset classes. The impact was recorded primarily       ment grade loans (both leveraged loan and bridge) were CHF
in Investment Banking and Asset Management.                        10.7 billion (USD 9.5 billion) as of the end of 2007. The
    Investment Banking results included net valuation reduc-       majority of these funded and unfunded loan exposures are to
tions in leveraged finance and structured products of CHF          large cap issuers with historically stable cash flows and sub-
3,187 million in 2007, including valuation reductions from the     stantial assets.
revaluing of certain ABS positions in our CDO trading busi-
ness. Asset Management recorded valuation reductions of            CMBS business
CHF 920 million in 2007 on securities purchased from our           CMBS are bonds backed by a pool of mortgage loans on com-
money market funds in order to address liquidity concerns          mercial real estate properties. Cash flows generated by the
caused by the US market’s extreme conditions, with the intent      underlying pool of commercial mortgages are the primary
of eliminating SIV, ABS CDO and US subprime exposures              source of repayment for the principal and interest on the
within those funds. We had no legal obligation to purchase         bonds. Various types of income-producing properties serve as
these securities from our money market funds.                      collateral for the commercial mortgages, including multi-family
    For further information relating to the impact on Investment   properties, hotels, health-care facilities, office and industrial
Banking and Asset Management results, refer to II – Operat-        buildings and retail properties. The collateral is typically sold to
ing and financial review – Investment Banking and – Asset          a special purpose entity (SPE) which then issues CMBS.
Management.                                                            A typical deal will include the issuance of multiple classes
    Credit Suisse continues to have exposure to markets and        of bonds. Principal payments are generally made to the bond
instruments impacted by the dislocation and our future results     classes on a sequential basis, beginning with the class with
are dependent upon how market conditions evolve and when           the highest priority and ending with the class with the lowest
liquidity re-enters the market. As a result, the fair value of     priority. The credit ratings on the bond classes will vary based
these instruments may deteriorate further and be subject to        on payment priority and can range from AAA to non-rated.
further valuation reductions.                                      Most CMBS are issued by private entities and, as a result, the
                                                                   credit quality of the underlying commercial mortgages will have
Leveraged finance business                                         a direct bearing on the performance of the bonds.
Our leveraged finance business provides capital raising and            We have risk exposure to the underlying commercial loans
advisory services and core leveraged credit products such as       from the time we make the loans until they are packaged as
bank loans, bridge loans and mezzanine and high-yield debt to      CMBS and distributed. We also have exposure that arises from
corporate and financial sponsor-backed companies. Leveraged        any securities that we retain.
finance underwriting activity results in exposures to borrowers        Our CMBS origination gross exposure was CHF 25.9 bil-
that are typically non-investment grade. Financing is usually      lion (USD 22.9 billion) as of the end of 2007. The vast major-
provided in the form of loans or high-yield bonds that are         ity of these loans are secured by historically stable, high-qual-
placed, or intended to be placed, in the capital markets. As a     ity, income-producing real estate to a diverse range of
result of the concentration of business with non-investment        borrowers in the US, Europe and Asia.
grade borrowers, this business may be exposed to greater risk
than the overall market for loans and bonds. Higher returns        RMBS business
are required to compensate underwriters and investors for any      RMBS are bonds backed by a pool of mortgage loans on resi-
increased risks. Leveraged finance is commonly employed to         dential real estate properties. Cash flows generated by the
achieve a specific objective, for example to make an acquisi-      underlying pool of residential mortgage loans are the primary
tion, to complete a buy-out or to repurchase shares.               source of repayment for the principal and interest on the
    Leveraged finance risk exposure takes the form of both         bonds. The residential mortgage loans included in these pools
funded and unfunded commitments. From the time a commit-           will vary based on the credit characteristics of the related
ment is made to a client to extend a leveraged loan, to the        obligors – ranging from prime loans to subprime loans – and
time the loan is closed and funded, an unfunded commitment         the related lien priority – either first liens or second liens. Var-
84




     ious types of residential properties collateralize the related res-   CDO trading business
     idential mortgages, including single family properties, two-to-       We purchase interests in RMBS and CDOs and enter into
     four family properties, low and high rise condominiums, coop-         derivative contracts with ABS CDOs and other counterparties.
     erative housing units and planned unit developments. Like             CDOs provide credit risk exposure to a portfolio of ABS (cash
     CMBS, the collateral backing RMBS is typically sold to an SPE         CDOs) or a reference portfolio of securities (synthetic CDOs)
     which then issues the RMBS. Typical RMBS transactions will            through, for example, credit default swaps. These portfolios
     include bonds with varying payment priorities and various             consist primarily of RMBS. The CDOs to which we have expo-
     methods of allocating any losses incurred on the underlying           sure have been structured and underwritten by third parties
     residential mortgages. The ratings associated with an RMBS            and by us. In addition, we have structured and underwritten
     transaction can range from AAA to non-rated. RMBS transac-            CDOs in the past for which we received structuring and/or
     tions include both non-agency and agency business.                    distribution fees, and, in some cases, we have retained inter-
         Our US subprime mortgage-related trading positions con-           ests in such CDOs.
     sist of mortgage-related exposures arising from investments               Our cash CDO business includes warehouse financing of a
     in subprime loans, from ABS that, in whole or in significant          portfolio of assets selected by clients for packaging and distri-
     part, are backed by subprime mortgage loans and from deriv-           bution as CDOs, where we sell the warehoused assets to the
     atives referencing subprime mortgages or subprime RMBS.               CDO vehicle for cash raised in the CDO issuance.
         We define a loan as subprime with reference to the credit-            Our primary CDO US subprime exposure is to bonds with
     worthiness of the borrower. A borrower’s credit history is            ratings of AAA or AA. In synthetic CDOs, we may be required
     reflected in a credit report and routinely converted into a           under credit default swaps to make payments in the event that
     numerical credit score often referred to as a Fair Isaac Corpo-       securities in the referenced portfolios default or experience
     ration (FICO) score. Generally, a loan made to a borrower with        other credit events such as rating agency downgrades. A char-
     a low FICO or other credit score has historically been consid-        acterization of credit default swaps as “super senior” is derived
     ered subprime. Loans to borrowers with higher FICO scores             from the seniority in the capital structure of the synthetic
     may be subprime if the borrower has other high-risk factors           CDO. The dislocation in the mortgage and credit markets has
     including: (i) the number and type of delinquencies reported on       resulted in declines in the value of the tranches subordinated
     mortgage trade lines in the immediately preceding two-year            to these super senior tranches, including CDOs that were
     period; (ii) the number and type of bankruptcies, if any, filed by    highly rated at issuance. Based on current market assump-
     or against the borrower; (iii) the time that has elapsed since        tions, these super senior tranches are now exposed to a
     the discharge or dismissal of such bankruptcies; (iv) the num-        greater portion of the expected losses of the CDO vehicle than
     ber of foreclosures, if any, filed against the borrower; and (v)      they were at origination.
     the number and type of open collections, judgments and/or                 The CDO trading business had net US subprime exposure
     charged-off accounts related to the borrower. We consider             of CHF 1.6 billion as of the end of 2007, reflecting the revalu-
     RMBS subprime if a significant portion of the underlying              ing of certain ABS positions. The CDO business is managed
     assets are subprime loans.                                            as a trading book on a net basis, and the related gross long
         We have risk exposure to residential loans, including sub-        and short positions are monitored as part of our risk manage-
     prime loans, from the time we make or acquire the loans until         ment activities and price testing procedures. We are not cur-
     they are packaged as RMBS and distributed. In addition, we            rently originating significant levels of subprime CDOs.
     have exposure to residential loans, including subprime loans,
     from the time we purchase such loans under master repur-              Structured Investment Vehicles
     chase warehouse financing agreements until they are resold            SIVs are unconsolidated entities that issue various capital
     under such agreements. We also have exposure that arises              notes and debt instruments to fund the purchase of assets.
     from RMBS retained interests.                                         We do not sponsor or serve as asset manager to any SIVs.
         The RMBS business had net US subprime exposure of                 However, Asset Management does serve as investment advi-
     CHF 1.6 billion and other net RMBS non-agency exposure of             sor to certain money market funds that had investments in
     CHF 7.1 billion as of the end of 2007. The CDO business is            securities issued by SIVs. In 2007, Asset Management pur-
     managed as a trading book on a net basis, and the related             chased approximately CHF 5.3 billion of such securities from
     gross long and short positions are monitored as part of our           our money market funds at amortized cost, which resulted in
     risk management activities and price testing procedures. We           valuation reductions of CHF 461 million. The fair value of pur-
     are not currently originating significant levels of subprime          chased securities issued by SIVs still held as of December 31,
     loans.                                                                2007 was CHF 2.5 billion and these securities are recorded in
                                                                       Balance sheet, Off-balance sheet, Treasury and Risk                 85
                                                              Balance sheet, off-balance sheet and other contractual obligations




trading assets in the consolidated balance sheets. As of            substantively participate in the gains and losses of the entity.
December 31, 2007, there were no material SIV positions in          Such entities are required to be assessed for consolidation
our money market funds.                                             under FIN 46(R), which requires that the primary beneficiary
                                                                    consolidate the VIE. The primary beneficiary is the party that
Hedging                                                             will absorb the majority of expected losses, receive the major-
As part of our overall risk management to reduce our expo-          ity of the expected residual returns, or both. We consolidate all
sures from these businesses, we hold a portfolio of hedges,         VIEs for which we are the primary beneficiary. VIEs may be
including single name hedges and index hedges in non-invest-        sponsored by us, unrelated third parties or clients. At each
ment grade, cross-over credit and mortgage indices. Hedges          balance sheet date, VIEs are reviewed for events that may
are impacted by market movements, similar to other trading          trigger reassessment of the entities’ classification and/or con-
securities, and may result in gains or losses on the hedges         solidation. Application of the accounting requirements for con-
which offset losses or gains on the portfolios they were            solidation of VIEs may require the exercise of significant man-
designed to hedge.                                                  agement judgment.
                                                                         Transactions with VIEs are generally executed to facilitate
                                                                    securitization activities or to meet specific client needs, such
Involvement with Special Purpose Entities                           as providing liquidity or investing opportunities, and, as part of
                                                                    these activities, we may hold interests in the VIEs. Securitiza-
In the normal course of business, we enter into transactions        tion-related transactions with VIEs involve selling or purchas-
with, and make use of, SPEs. SPEs typically qualify either as       ing assets and entering into related derivatives with those
qualified special purpose entities (QSPE) according to SFAS         VIEs, providing liquidity, credit or other support. Other transac-
No. 140, “Accounting for Transfers and Servicing of Financial       tions with VIEs include derivative transactions in our capacity
Assets and Extinguishments of Liabilities” (SFAS 140) or VIEs       as the prime broker for entities qualifying as VIEs. We also
according to FIN 46(R). At each balance sheet date, QSPEs           enter into lending arrangements with VIEs for the purpose of
and VIEs are reviewed for events that may trigger reassess-         financing client projects or the acquisition of assets. Further,
ment of the entities’ classification.                               we are involved with VIEs which were formed for the purpose
    The majority of our securitization activities involve mort-     of offering alternative investment solutions to clients. Such
gages and mortgage-related securities and are predominantly         VIEs relate primarily to private equity investments, fund-linked
transacted using QSPEs. In order to qualify as a QSPE, the          vehicles or funds of funds, where we act as structurer, man-
permitted activities of the SPE must be limited to passively        ager, distributor, broker, market maker or liquidity provider. The
holding financial assets and distributing cash flows to investors   economic risks associated with VIE exposures held by us,
based on pre-set terms. In accordance with SFAS 140, enti-          together with all relevant risk mitigation initiatives, are included
ties that qualify as QSPEs are not consolidated at inception        in our risk management framework.
and the risk of subsequent consolidation is minimal.                     For additional information and disclosure of our maximum
    Securitization transactions are assessed in accordance          exposure to loss, refer to Note 32 – Transfers and servicing of
with SFAS 140 for appropriate treatment of the assets trans-        financial assets in V – Consolidated financial statements –
ferred by us. Our investing or financing needs, or those of our     Credit Suisse Group.
clients, determine the structure of each transaction, which in           We have raised hybrid tier 1 capital through the issuance
turn determines whether sales accounting and subsequent             by SPEs of trust preferred securities that purchase subordi-
derecognition of the transferred assets under SFAS 140              nated debt securities issued by us. These SPEs have no
applies. Certain transactions may be structured to include          assets or operations unrelated to the issuance, administration
derivatives or other provisions that prevent sales accounting       and repayment of the trust preferred securities and are not
and related derecognition of the assets from consolidated bal-      consolidated by us under FIN