Credit Suisse Fixed Income Investor Presentation

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Credit Suisse Fixed Income Investor Presentation Powered By Docstoc
					Credit Suisse
Fixed Income Investor Presentation


November 2010
Cautionary statement

Cautionary statement regarding forward-looking and non-GAAP information
This presentation contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks
and uncertainties, and we might not be able to achieve the predictions, forecasts,
projections and other outcomes we describe or imply in forward-looking statements.
A number of important factors could cause results to differ materially from the plans,
objectives, expectations, estimates and intentions we express in these forward-looking
statements, including those we identify in "Risk Factors" in our Annual Report on Form 20-F
for the fiscal year ended December 31, 2009 filed with the US Securities and Exchange
Commission, and in other public filings and press releases. We do not intend to update
these forward-looking statements except as may be required by applicable laws.
This presentation contains non-GAAP financial information. Information needed to reconcile
such non-GAAP financial information to the most directly comparable measures under
GAAP can be found in Credit Suisse Group's third quarter report 2010.


                                                                                Investor Presentation
                                                                                              Slide 1
Key themes

Profile and results

Private Banking is ideally positioned to benefit when
the environment improves

Progress in delivering our client-focused strategy while maintaining
a disciplined investment approach in Investment Banking

Capital and liquidity strength provides flexibility to grow franchise in
an evolving industry landscape

Summary


                                                                 Investor Presentation
                                                                               Slide 2
A leading integrated bank
 CHF 34 bn equity                                                   CHF 1.3 tr assets under management (AuM)
 CHF 50 bn market value                                             50,000 employees, 60% outside Switzerland
 Long-term ratings1): Aa1 (Moody’s) / AA- (Fitch) / A+ (S&P)

            Private Banking                       Investment Banking                       Asset Management
     Wealth              Corporate &          Client-focused and capital-            Successfully executing strategy
   Management             Institutions        efficient business model               Focused on core competencies
     globally           in Switzerland        Delivered on significant               in alternative investments and
   Resilient business model and               risk reductions                        asset allocation (MACS)
   building on strong market and
   competitive position
   CHF 935 bn in AuM                          Progress in client-driven              CHF 423 bn AuM,
   4,190 advisors in 47 countries             business model and gaining             whereof CHF 183 bn in
   serving high-net-worth-clients             market shares                          alternative investments
   Clients in Switzerland served              Investing to build critical mass in    Over 1'000 investment
   through 266 branches                       selected fixed income                  professionals
                                              businesses

  Prudent taking of risk in line with our strategic priorities is fundamental to our business as a leading integrated
  bank, we maintain a conservative framework to manage liquidity and capital
                                                                                                                            Data as of end 3Q10
                                                                                     1) Ratings are for Credit Suisse AG as at November 4, 2010



                                                                                                                      Investor Presentation
                                                                                                                                    Slide 3
Results overview
Core results in CHF bn                    3Q10                2Q10                3Q09                  9M10                  9M09
Net revenues                               6.3                    8.4                  8.9                23.7                  27.1
Pre-tax income                             0.8                    1.8                  2.6                 5.5                   7.2
Net income attributable to shareholders    0.6                    1.6                  2.4                   4.3                   5.9
Return on equity                           7%                  18%                 25%                   16%                    22%
Net new assets                            14.6                 14.5                16.7                  55.1                   31.7
Tier 1 ratio                              17%                  16%                 16%                    17%                   16%
Tier 1 capital                            37.9                 38.0                36.2                   37.9                  36.2
Underlying results 1)
 Net revenues                              6.9                  7.5                 9.0                  23.1                  27.7
 Pre-tax income                            1.4                  1.6                 2.9                   5.7                   8.6
 Net income                                1.0                  1.1                 2.2                   4.0                   6.3
 Return on equity                         11%                  12%                 23%                   15%                   23%
                                                 1) Adjusted for impact from the movement of spreads on own debt and other significant items



                                                                                                                  Investor Presentation
                                                                                                                                Slide 4
Successful execution of our strategy with sustained
performance while significantly reducing risks
Net revenues (CHF bn)            Risk-weighted assets (CHF bn)                                      Total assets (CHF bn)

                                                                                                        1,415
    33.3         34.4                   296
                                                                                                                    1,031         1,067
                        23.7                               222                228
           +3%                                 (25)%                                                        (20)%
                                                                   +3%                                                      +3%

    2007         2009   9M10       End 2Q07 End 2009                      End 3Q10                    End 2Q07 End 2009        End 3Q10

Pre-tax income (CHF bn) and      Position risk (CHF bn)                                             Tier 1 ratio (%)
after-tax return on equity (%)
                                       20.6                                                                          16.3          16.7
                 21%
    15%                                                                                                  13.0
                 9.3    16%                               12.5               12.2                                       +0.4ppt
    7.9                                       (34)%                                                         +3.3ppt
                        5.7                                        (2)%
          +18%

    2007         2009   9M10       End 2Q07 End 2009                      End 3Q10                     End 2Q07 End 2009         End 3Q10
                                  Position risk is the level of unexpected loss in economic value



                                                                                                                             Investor Presentation
                                                                                                                                           Slide 5
Key themes

Profile and results

Private Banking is ideally positioned to benefit when
the environment improves

Progress in delivering our client-focused strategy while maintaining
a disciplined investment approach in Investment Banking

Capital and liquidity strength provides flexibility to grow franchise in
an evolving industry landscape

Summary


                                                                 Investor Presentation
                                                                               Slide 6
Private Banking is ideally positioned to benefit when the
environment improves
                        1
Stable and superior
platform as magnet to       Strong inflows evidencing continued market share gains
client business             Hiring momentum as foundation for future growth


                        2
Operating at                Despite recent cyclical reduction in gross margin, still
cyclical low                the highest and most resilient in the industry
                            Upgrading capabilities with focus on relationship
                            manager quality and experience
                        3
Well prepared for           Global scale and presence
evolution of private
banking industry            Industry leading compliance framework
                            Expanding our industry-leading advisory model


                                                                           Investor Presentation
                                                                                         Slide 7
Wealth Management Clients with continued strong inflows                                                                           1




Strong and broadly distributed net new asset inflows
CHF bn


                             52            53                                   Growth rates have been around our
                45                              44                              6% "across-the-cycle" target rate
                                                      41
                                                           37
   33                                                                           Cumulative net new assets of
                                                     35    7     Asia Pacific   over CHF 115 bn since 2008
                                                           4     Americas
                                                                                – More than 3 times the amount of
                                                           8     EMEA             nearest competitor
                                                           6     Switzerland
                                                                                60% of net new assets in
  2004 2005 2006 2007 2008                           2009 9M10
                                                                                international booking centers
 Annualized net new asset growth in %                                           outside Switzerland
   na 7.2 7.0 6.3 4.9 5.1 6.2                                                   (cumulative from 2006 to 2009)

  = Outflows due to tax amnesty in Italy




                                                                                                                 Investor Presentation
                                                                                                                               Slide 8
Capitalizing on leading global industry position by upgrading capabilities                                           1


with focus on relationship manager quality and experience
    Relationship managers
       2007 vs. 2Q10
                                                     Focus Asia Pacific: Upgraded the work force
                                                     while maintaining strong net new asset growth
                                                                                            +21%
 Switzerland       70                    +3%            Annual net new
                                                       asset growth rate           +25%      10.9         30.6
                                                         Net new                   11.5
                                                                           +13%
                                                         assets in
 International              260          +14%            CHF bn            8.2
                                                                           2008    2009    9M10 Cumulative

                   330 net new RMs       +9%
                                                       Gross hires of 250; net increase of 20
                                                       Proportion of senior RMs hired at 70% (vs. 30% in '07)
                   1'410 gross hires +36%
                                                       Average net new assets of new hires in first six months
                                                       has more than doubled (vs. 2007)
 Total relationship managers at end 3Q10 of 4,190      AuM per RM almost doubled (vs. 2008)
                                                                                                    RM = Relationship manager
                   Significant improvements in quality and productivity of relationship
                   managers provide substantial upside potential in future years

                                                                                                Investor Presentation
                                                                                                              Slide 9
Mature offshore business is shrinking – more than offset by                                                                          2
growth in other businesses with similar margins
                                   Net new assets      Gross margin                                         Breadth, depth and
Wealth                                 (CHF)            (basis points)                                      maturity of product
Management                           2009      9M10    2009 9M10                                                        offering
Swiss booking                       +8 bn +12 bn       142      135
center                                                                                                                           Higher
                 Switzerland                            HNWI+ only         Further expanding of HNWI market
                      (onshore)
                                    +6 bn   +8 bn      119      114        share
                                                                           Western Europe "Big-4" (Germany, Italy, UK,
                      Mature                                               France) account for AuM of CHF 106 bn
                     markets (11) bn        (4) bn     119      111        AuM at risk of some CHF 25 to 35 bn,
                      (offshore)
                                                                           assuming adverse events in all markets
                   Emerging                                                Globally diversified inflows
                    markets +13 bn             +8 bn   114      103        Switzerland with superior value
                      (offshore)                                           proposition beyond client confidentiality

                                                                         Further upside potential on margin
International         Global,                                              Broadening product & service offering
                                   +24 bn +20 bn       112       96                                                              Lower
booking centers      (onshore &
(excluding US)         offshore)                                           Reaching full productivity of recently
                                                                           added relationship managers

         Current net new assets trends expected to continue
         Relative gross margin contribution expected to remain stable, with upside when markets improve


                                                                                                                    Investor Presentation
                                                                                                                                 Slide 10
Gross margin trends                                                                              2




               Defensive asset-mix must change over time
Client         – More than 30% cash not a viable long-term investment strategy
activity       Confidence and risk appetite to return with stabilization of the environment
               – demand for sophisticated products to normalize

               Onshore/offshore business mix change not expected to materially impact
               gross margin
               – margin level is primarily driven by breadth and depth of service offering
Asset
               Further expanding share of ultra-high-net-worth client segment with limited
productivity
               negative margin impact
               – Significant upside for integrated solution revenues across divisions
               Higher interest rates will lead to margin expansion


                                                                                Investor Presentation
                                                                                             Slide 11
Well prepared for continued evolution of                                                         3


the private banking industry
                   Invested over many years in the successful expansion of our
                   international platforms; leading global footprint with 23 booking
                   centers
  Changes in
  Changes in
 cross-border
 cross-border      Continue to expand on-shore capabilities as client demand shifting
regulation and
regulation and     from off-shore to multi-shore model with global capabilities
client behavior
client behavior    Developed industry leading compliance framework
                   Expertise and client solutions enables us to thrive in a level playing
                   field with Switzerland as a leading wealth management center

                   Well prepared for regulation focused on suitability and
 Suitability of
  Suitability of   appropriateness of products and advice (e.g. MIFID)
 products and
 products and      Strong emphasis on expanding our industry-leading advisory model
    advice
    advice
                   Relationship manager certification and training


                                                                                Investor Presentation
                                                                                             Slide 12
Key themes

Profile and results

Private Banking is ideally positioned to benefit when
the environment improves

Progress in delivering our client-focused strategy while maintaining
a disciplined investment approach in Investment Banking

Capital and liquidity strength provides flexibility to grow franchise in
an evolving industry landscape

Summary


                                                                 Investor Presentation
                                                                              Slide 13
Progress in delivering client-focused strategy while maintaining
a disciplined investment approach in Investment Banking
                             1
Client-focused,                  Client revenues dominate revenue mix in the
capital-efficient strategy       Investment Bank
delivers results
                                 Businesses with a leading market position and
                                 high capital turn deliver superior returns on
                                 capital

                             2
Opportunities remain             Increased market shares and normalization of
to grow high-return              market environment
businesses
                                 Focused investments in selected businesses to
                                 improve market share positions, broaden the
                                 footprint and achieve critical mass



                                                                       Investor Presentation
                                                                                    Slide 14
Client revenues dominate revenue mix in                                                               1


the Investment Bank
Contribution to net revenues (9M10)
                                              Successful client-focused strategy resulting in
                                              89% contribution from direct client revenues,
                             Underwriting     which consist primarily of:
                              & Advisory
                                22%           – fees and commissions,
            Equity                      11%
        Sales & Trading                       – gains and losses from matching of client trades,
             32%
                                              – revenues from client financing activities
                         Fixed Income
                        Sales & Trading       Indirect client revenues of 11% consist of:
                               35%
                                              − gains, losses and financing on inventory
                                                positions held for market making activities
    Direct client revenues                    − 2% contribution from arbitrage trading
    Indirect client revenues
    and arbitrage trading



                                                                                     Investor Presentation
                                                                                                  Slide 15
Client-focused businesses with a leading market position                                                                                                            1

and high capital turn deliver superior returns on capital
Example: Equities business in the Investment Bank
Equity sales and trading revenue / Equity Value-at-Risk in USD m

                                  Peer average 75                              Credit Suisse has consistently achieved the
                       68                  68                                  highest level of equity sales and trading
             55                                                                revenues per unit of risk
   49
                                                                 43
                  37
        32                  34
                                  28 24
                                                 34
                                                           27
                                                                               Demonstrates the strength and consistency
                                                                               of our lower risk, client-focused strategy
                                                                      n/a

    1Q09     2Q09      3Q09       4Q09         1Q10   2Q10       3Q10
6M10 number of loss trading days                                               Credit Suisse daily total revenue distribution was
                                                                               generally tighter in 6M10
                                                                 15
                                                      12                       – no outsized daily gains/losses and only two
                                          10                                         loss days below CHF (25) m
                              8
                                                                               Peer group volatility was higher as evidenced by a
                  3                                                            greater number of outsized gain and loss days
        2
                                                                            Peers include Bank of America, Barclays, Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan Chase,
                                                                            Morgan Stanley, UBS
              Peer 1        Peer 2   Peer 3 Peer 4              Peer 5      Note: Revenues adjusted for gains/(losses) on own debt; all VaR converted to 99% confidence level



                                                                                                                                                Investor Presentation
                                                                                                                                                             Slide 16
Continued client market share momentum; upside potential                                                                                                                                                        2
remains
                                              Securities                                                                                 Underwriting and advisory
(Rank/market share)                   2007          2008           2009       YTD 9M101) Trend2)                  (Rank/market share)                2007          2008          2009       YTD 9M10 Trend2)

                US cash            #4/12%         #5/12%         #2/12%         #1/13%                                       Global                #6/20% #7/17%               #5/16%
                equities 2)                                                                                                                                                                   #4/16%
                                                                                                                             announced




                                                                                                                   M&A
 Equities




                US electronic #1/8%                #1/8%          #1/8%         #1/11%                                       Global
                trading 2)                                                                                                                         #8/18% #7/19%                #8/15%        #5/16%
                                                                                                                             completed
                Prime               Top 6/          Top 3/        Top 3/
                                                                                #3/13%
                services 2)          ~6%            >10%          >10%                                                       Investment            #13/3% #12/4%               #10/4%          #5/5%
                                                                                                                             grade global




                                                                                                                   DCM
                                                                                                                             High yield
                                   #10/5%          #8/6%          #6/9%         #5 - #6 3)                                                         #2/11% #3/11%                #4/9%         #3/10%
                US rates                                                                                                     global
                                                                               9% - 10%
                Foreign
 Fixed Income




                                   #14/2%          #9/3%          #8/4%             NA
                exchange




                                                                                                                   ECM
                                                                                                                             ECM global             #7/6%         #7/5%         #7/6%          #7/5%
                RMBS
                pass-              #1/18%         #1/18%         #1/19%         #1/19%


                                                                                                                 Emerging
                throughs


                                                                                                                  Markets
                                                                                                                             Total fees             #2/8%         #1/8%        #1/12%          #2/7%
                Leveraged                                                                    3)
                                   #4/13%         #2/16%         #2/19%         #3/13%
                loans 4)
          Source: Thomson Financial, Dealogic, Tradeweb, Euromoney magazine and Greenwich Associates                          2)Rank based on a leading market share analysis provider; market share based on Credit
          Note: Emerging markets fee data includes India, China, Indonesia, Brazil, Mexico, Russia, Middle East and Africa                                                                          Suisse estimates
          1) YTD 9M10 represents most current data available                                                                                                                    3) Based on Credit Suisse estimates
          2) Represents trend compared to FY09                                                                                                                      4) Represents leveraged loans secondary trading



                                                                                                                                                                                           Investor Presentation
                                                                                                                                                                                                        Slide 17
Narrower set of businesses in fixed income currently                                                                                             2


meet high capital turn criteria; significant opportunities exist
                                                            Flow Sales
  Business     Current Share / Rank                     Headcount Expansion                                      Objective

                   US 7% / <#6 1)
 Credit        US lev. loan 13% / #3 1)                              Up 25%                                   Top 5 in all regions
                Europe 5% / <#6 2)

                  US: 8% / <#6 1)
 Rates                                                               Up 32%                                   Top 5 in all regions
                 Europe: 3% / <#6 2)

                  Global 4% / #8 3)
 Foreign             US <#10 3)
                                                                     Up 35%                                   Top 5 in all regions
 Exchange         Europe 6%/#6 3)
                  APAC 3%/#10 3)

 Structured          19% / #1 4)
                                                                       None                                   Maintain #1 ranking
 Products       (RMBS pass-throughs)

    Focused investment in expanding selected flow-based businesses to achieve critical mass

                        1) Greenwich Associates, 2010 2) Greenwich Associates, 2009 3) Euromoney 4)Tradeweb
                                                                                                                                Investor Presentation
                                                                                                                                             Slide 18
Key themes

Profile and results

Private Banking is ideally positioned to benefit when
the environment improves

Progress in delivering our client-focused strategy while maintaining
a disciplined investment approach in Investment Banking

Capital and liquidity strength provides flexibility to grow franchise in
an evolving industry landscape

Summary


                                                                 Investor Presentation
                                                                              Slide 19
Maintained leading capital position

Basel 2 risk-weighted assets (in CHF bn) and capital ratios (in %)


                  16.3   16.3 16.7%      Increase strong Basel II tier 1 ratio to 16.7%

         13.3
                                         Core tier 1 ratio of 12.1% 1)
  10.0

   324
                                         Regulatory leverage ratio increased to 4.3%
          257                            (vs. 3.9% in 2Q10)
                  222    233   228

                           (2)%          Consistent dividend accrual policy in line with
                (30)%                    historic payout ratio
  2007   2008     2009   2Q10 3Q10
                                                                         1) Excluding hybrid capital of CHF 11.5 bn



                                                                                         Investor Presentation
                                                                                                      Slide 20
Well positioned to face changes in Basel capital rules

Risk-weighted assets projection                                                                  Common Equity Capital Ratio simulation
CHF bn                                                                                           (for illustrative purposes only)


                                                                                                         Basel 2 in 3Q10                                               12%
                                    Approx.             (50) to
                                      400                (70)                                           Retained earnings
                                                                           330 to                         4Q10 to 20131)
                                                                                                                                                                                            +7%
                                                                            350
                                                                                                    Increased RWA with
                   +130                                                                              Basel 2.5 & Basel 3
                                                                                                                                                                                           (6)%

                                                                                                               5% RWA /
     228             +45                                                                                  business growth
                                                                                                                                                                          (1)%

                                                                                                          Basel 3 in 2013                                              12%

                                                                                                        Constant retained
                                                                                                         earnings to 2019
                                                                                                                                                                                              +9%
                                                                                                                 Phase-in of             Still over 10% with
                                                                                                                                                                                              (2)%
                                                                                                                deductions2)            50% lower net income
   Basel 2        Basel             Basel 3 Mitigation                      Basel 3
   (3Q10)         2.5 & 3            (before impact                           (after
                                                                                                          Basel 3 in 2019                                                               18%
                                    mitigation)                             mitigation)


         1) Bloomberg consensus to 2012. Kept constant for 2013. Net income shown is not endorsed or verified and is used solely for illustrative purposes. Actual net income may differ significantly.
                                                                                   2) Primarily for residual deferred tax assets, pension plan adjustments, and participations in financial institutions



                                                                                                                                                                              Investor Presentation
                                                                                                                                                                                           Slide 21
Views on the viability of the contingent convertible market

       In a continued low interest rates environment, there is significant institutional and retail
       investor appetite for higher-yielding assets
       Substantial current inventory of bank capital notes that will be called or mature
       – Current Tier 1 and Tier 2 capital market outstanding estimated at EUR 450 bn
Why
       CoCo structure arguably a superior value to investors compared to a traditional
       bankruptcy / liquidation scenario
       Substantial 'out-of-the-money' conversion, especially on low-trigger CoCo, should allow
       for participation of traditional fixed income investor groups

       Traditional holders of bank capital notes will seek to replace holdings as they are being
       called or mature
       Sovereign Wealth Funds and other funds will seek opportunities to invest in new asset
Who    classes – especially as high-trigger CoCo mimics their deep-value investment thesis
       Superior economic value, higher yield and 'out-of-the-money' conversion may be viewed as
       an attractive investment proposition also for more traditional investor groups
                                                                                             Note: source Dealogic



                                                                                           Investor Presentation
                                                                                                        Slide 22
Changes in the capital structure (for illustrative purposes only)
                                                                                                                               34.1
                      Current                                                         Future
           capital/funding components                                      capital/funding components

              Total           192                                 192
           Senior             130
        long-term                                                 128
                                                                        Senior long term debt:
                                                                         Larger CoCo & equity balances imply a reduced requirement to
             debt                                                        fund via senior bond markets
                                            Indicative spreads           Spreads on senior bonds may price tighter, as the risk-profile of
    Regulatory                              to senior debt:              the issuer improves and the theoretical liquidation value increases
    debt capital
                                                                        CoCo:
             Lower                               100 bps
      tier 2 capital                                                     CoCo structures (and excess equity) to fully substitute current
                         11.0                                            subordinated capital bonds
             Upper
                                                 350 bps          20     While the total amount of regulatory capital will increase, the average
                          2.0
      tier 2 capital               28            750 bps1)               "unit price" may come down, depending on spread assumptions
    Hybrid capital       11.5
                                                                  10
        "Claudius"        3.3                    500 bps                Low trigger:
                                                                          6% of RWA requirement; 5% tier 1 trigger point
                                                                          May replace existing Tier 2 capital
                                                Weighted
Shareholders'                  34               spread: 430 bps   34    High trigger:
       equity                                                             3% of RWA requirement; 7% tier 1 trigger point
                                                Implied annual
                                                                          May replace existing hybrid capital
                                                spread costs:
                                                CHF 1.2 bn



Note: Based on CHF 340 bn of Basel 3 risk-weighted assets               1) Inflated due to sizable issuance volumes in 2008; would be around 500 bps otherwise



                                                                                                                                      Investor Presentation
                                                                                                                                                   Slide 23
Maintained strong funding structure

Asset and liabilities by category (end 3Q10 in CHF bn)
        1,067                                   1,067                     Strong balance sheet structure and liquidity
 Reverse            222                Repo                  243          maintained; well-positioned to succeed in
 repo                                                                     changing regulatory environment
                          Match
 Encumbered          99 funded                                            44% of balance sheet is match funded
 trading assets                Short positions                78
                                       Funding-               152
                                                                          Stable and low cost deposit base as key funding
 Funding-          152
 neutral assets 1)
                           473         neutral liabilities 1)             advantage
 Cash 2)             51    594         Short-term debt 2) 49              Regulatory leverage ratio at 4.3%
                                       Other short-term liab 3) 50
 Unencumbered       165                                                   17% of balance sheet financed by long-term debt
 liquid assets 4)                      Customer              271
                           125%
                                       deposits                           (vs. 12% at end 2006)
 Customer           217   coverage
 loans                                                                    Further lengthened long-term debt profile to
                                       Long-term debt        179          6.6 years duration (vs. 4.9 at end 2006) 5)
 Other              161                                                        1) Primarily brokerage receivables/payables, positive/negative replacement values and cash collateral
 illiquid assets                                                                                                                                         2) Includes due from/to banks
                                       Total equity           45            3) Primarily includes excess of funding neutral liabilities (brokerage payables) over corresponding assets
                                                                     4) Primarily includes unencumbered trading assets, investment securities and excess reverse repo agreements,
      Assets                         Equity & liabilities                                                                                                                 after haircuts
                                                                                  5) weighted average, assuming that callable securities are redeemed at final maturity, latest in 2030



                                                                                                                                                             Investor Presentation
                                                                                                                                                                          Slide 24
Substantially reduced issuance of CDs and focus now on
long-term issuance markets
Long-term debt and term CD issuance
in CHF bn
                                                                       2007           2008        2009        YTD 2010
 28.1
                                                      24.4

                                                                17.2
                                                             15.9
     13.4
                                                9.9                                                      10.8

            5.8                     6.3
                  3.9
                                                                                2.7         2.6    2.2
                              1.4         1.6                            0.9                                         1.5
                        0.2                                                           0.1

        CD                Pfandbrief                   Senior                 Lower tier 2                Tier 1


                                                                                                          Investor Presentation
                                                                                                                       Slide 25
Long-term debt maturity profile
   As of September 30, 2010, long-term debt outstanding was CHF 123 bn
   Credit Suisse has no government-guaranteed debt
   Assumes callable issues redeemed at first call date, including CHF 10 bn callable in 2013

                                                                                               SN = Structured notes LTD = Long-term debt
35

30                                                                   SNs
                                                                     LTD callable
25
                                                                     LTD
20

15

10

  5

  0
         2010        2011        2012        2013        2014        2015        2016         2017        2018        2019       2020+

Note: Total Long-Term Debt as of September 30, 2010 was CHF 179 bn, which includes CHF 56 bn of structured notes, non-recourse liabilities from VIEs and
accounting adjustments not part of Treasury funding.


                                                                                                                                        Investor Presentation
                                                                                                                                                     Slide 26
Key regulatory developments anticipated – and well placed in this regard

               In early 2010, FINMA announced a significantly tightened liquidity regime, consistent in
               direction with current Net Stable Funding Ratio proposals under Basel 3
 Liquidity     Measures implemented by Credit Suisse in 2008/2009 allowed us to be fully compliant with
               new FINMA regime; further changes towards a potentially stricter Basel 3 regime not
               significant

               Outside the US/Canada, the only major financial center with a leverage regime is Switzerland
               FINMA introduced rules for the large banks, setting a minimum level of 3%;
 Leverage      Credit Suisse already now well in excess of the minimum level
               Long-term implementation of Basel 3 leverage ratio still relatively unclear but expect outcome to
               be manageable

               2008 strategic decision to exit long-term exotic derivative markets and focus on liquid and flow-
               based volume business in line with current US and global developments
US financial   Exited most of our proprietary trading activities since 2008; small quantitative trading business
  reform       unlikely to be in scope of new rules
               Our strategy in Asset Management is focused on 3rd-party capital and fee-based revenue
               streams; while our business is largely unaffected, we may need to make minor adjustments


                                                                                                   Investor Presentation
                                                                                                                Slide 27
Key themes

Profile and results

Private Banking is ideally positioned to benefit when
the environment improves

Progress in delivering our client-focused strategy while maintaining
a disciplined investment approach in Investment Banking

Capital and liquidity strength provides flexibility to grow franchise in
an evolving industry landscape

Summary


                                                                 Investor Presentation
                                                                              Slide 28
Credit Suisse business prospects strong with potential upside

 Private Banking operating at cyclical low;
 ideally positioned to benefit when the
 environment improves

             Asset Management now much better
             positioned strategically and with improving
             investment performance

                        Investment Banking with continued
                        progress in client driven business model
                        and capturing market share gains


                                                            Investor Presentation
                                                                         Slide 29
Appendix

                                                           Slide
Well balanced global footprint                                31
Divisional performance 3Q10 / 9M 10                     32 to 34
Key performance indicators                              35 to 36
Collaboration revenues                                        37
Pending acquisition of minority stake in York Capital         38
Gross margin in Wealth Management                             39
9M10 movement in shareholders’ equity                         40
Loan portfolio characteristics                          41 to 42
Swiss economy overview                                        43
Continue to grow investor base                                44
Simplified legal entity structure                             45
Long-term credit rating overview                              46
Results in the Corporate Center                               47

                                                              Investor Presentation
                                                                           Slide 30
Well balanced global footprint and diversified business mix

 Net revenues by region                                      Net revenues by division
                                            Total                                                         Total
                                      CHF 23.1 bn                                                   CHF 23.1 bn

                                                               Asset Management
     Asia Pacific                                                           7%
           10%                 Switzerland
                               28%                                                            Private Banking
                                                                                              38%

                    9M10                                                      9M10
   Americas
      38%                      EMEA
                               24%                            Investment Banking
                                                                           55%
                     EMEA = Europe, Middle East and Africa




                                                                              Note: excluding CHF 0.6 bn in Corporate Center


                                                                                                        Investor Presentation
                                                                                                                     Slide 31
Investment Banking
                                                                                                        over/under                over/under
Pre-tax income CHF m                       CHF bn                                            3Q10 2Q10                  9M10          9M09
                                           Net revenues                                         3.4        (17%)        12.7        (27%)
 5,815
                                           Compensation & benefits                              1.9             (7%)      6.2       (20%)
         (49)%                             Other operating expenses                             1.2             (9%)      3.6          +3%
                                           Total operating expenses                             3.0             (8%)      9.8       (13%)
          2,973
                                           Comp./revenue ratio1)                             54%            +6ppt       48%          +4ppt
                  1,746
                           784             Comments 3Q10
                                    395
                                             Solid fixed income sales and trading results driven by strong
                                             results in US RMBS trading and Credit businesses; solid
 9M09     9M10    3Q09    2Q10     3Q10      contribution from Rates and Emerging Markets
                                             Equity sales and trading results impacted by lower industry-wide
                                             volumes in Cash Equities, seasonal decline in Prime Services and
Pre-tax income margin %                      weaker client flows in Derivatives compared with a particularly
  33       23      35       19      12       strong 2Q10
                                             Solid underwriting and advisory performance in light of muted
Pre-tax return on av. economic capital %     activity levels; continued strong pipeline; capital markets trends
  38        21      36      16        9      showed improvement in September

                                              1) Excluding fair value on own debt and excluding UK bonus levy
                                                                                                                       Investor Presentation
                                                                                                                                    Slide 32
Private Banking
                                                                                        over/under              over/under
Pre-tax income CHF m                                 CHF bn                      3Q10 2Q10            9M10          9M09
  Corporate and Institutional Clients (CIC)          Net revenues                 2.8      (6%)         8.7          +1%
  Wealth Management Clients (WMC)
                                                     Compensation & benefits      1.1      (6%)         3.5          +3%
          (7)%
 2,794
            2,602                                    Other operating expenses     0.9      (5%)         2.6        +13%
  588                                                Total operating expenses     2.0      (5%)         6.1          +7%
             680
                                                     Net new assets             12.6        -1.2      45.0           +9.8
                         867        874       836    w/o WMC                    12.4       +0.5       37.2           +7.3
 2,206      1,922
                         144        241       224    w/o CIC                      0.2       -1.7        7.8          +2.5
                         723        633       612    Comments 3Q10

 9M09       9M10       3Q09        2Q10       3Q10     Continued strong net new assets (9M10 growth: 6.2%
                                                       WMC) evidencing the strength and resilience of our business
                                                       model
Pre-tax income margin %                                Solid pre-tax income, despite seasonal summer slowdown
   32       30     31                 29       30      leading to lower brokerage revenues
Gross margin WMC, bp annualized                        Continued upgrading of relationship managers
 131    120     125     120     118                    CIC business continues to deliver strong results

                                                                                                     Investor Presentation
                                                                                                                  Slide 33
Asset Management
                                                                                 over/under                        over/under
Pre-tax income CHF m                          CHF m                      3Q10 2Q10                    9M10             9M09

                                              Fee-based revenues         421          +4%            1,241              +6%
             323    311
                                              Other revenues             161        +68%                 474              n.m.
                                              Net revenues               582        +16%             1,715            +42%
                                       135
                                              Compensation & benefits 261           (10%)                832            +1%
                                 22           Other operating expenses 186            (3%)               560          +11%
                                              Total operating expenses   447          (7%)           1,392              +5%

 -124                                         Comments 3Q10
 9M09
        1)
             9M10   3Q09
                           1)
                                2Q10   3Q10     Asset Management with continued progress to grow its
                                                core business
                                                Net new assets of CHF 3.6 bn represent positive asset
Fee-based margin on average AuM, bps            flows for the fifth consecutive quarter
  38      39      38      37      40

                                                                          1) Including gain on sale of business of CHF 207 m in 3Q09



                                                                                                     Investor Presentation
                                                                                                                  Slide 34
Group key performance indicators
Performance to be achieved across market cycles   9M10                 2009                  2008                  2007                 2006

             Collaboration    CHF 10 bn
                                                  3.2 bn               5.2 bn                5.2 bn                5.9 bn                4.9 bn
             revenues         annually by 2012
Growth
             NNA growth
                              Above 6%            6.0%                  4.0%                 (0.2)%                 3.1%                  7.1%
             (annual)
             Total share-     Superior return     (15)%                  80%                 (56)%                 (18)%                   31%
             holder return    vs. peer group      vs. (1)%             vs. 35%              vs. (55)%             vs. (18)%              vs. 21%

Efficiency
             Return on
& Perfor-                     Above 18%            20%                   18%                 (21)%                   18%                   28%
             equity
mance
             Cost /
                              Below 65%            77%                   73%                 196%                    73%                   69%
             income ratio1)

Risk and     Tier 1 ratio
                              Above 12.5 %        16.7%                16.3%                 13.3%                 10.0%                13.9% 3)
Capital      (Basel 2) 2)
                                                                1) Core Results, i.e. excluding noncontroling interests without significant economic interest
                                                  2) To be adjusted to reflect fall 2010 announcements on Basel 3 and Swiss expert commission proposals
                                                                                                                                                  3) Basel 1



                                                                                                                                  Investor Presentation
                                                                                                                                               Slide 35
Divisional key performance indicators

Performance to be achieved across market cycles   9M10   2009   2008   2007              2006


                      Pre-tax margin > 40%        26%    31%    30%     41%                 39%
     Private
     Banking          Net new assets1)
                       growth > 6%                6.6%   5.1%   4.9%   6.3%                7.0%


    Investment
                      Pre-tax margin > 25%        23%    33%      –     19%                 29%
      Banking


    Asset
                      Pre-tax margin > 40%        19%     2%      –     15%                 17%
  Management



                                                                       1) Wealth Management Clients business



                                                                                    Investor Presentation
                                                                                                 Slide 36
Collaboration revenues

CHF bn
                               Collaboration revenues
                 1.0     3.2     Stable revenues, whilst impacted by lower client
                                 activity
          1.2                    The pipeline on tailored-solutions for
                                 Private Banking clients continues to build

                               Asset referrals
    1.0                          9M10 already significantly exceeds FY 2009

                                 CHF 8.6 bn of assets referrals for Private Banking
                                 – Net new assets of CHF 3.6 bn
   1Q10   2Q10   3Q10   9M10     – Custody assets of CHF 5.0 bn
                                 Generated CHF 2.0 bn in new mandates for
                                 Asset Management


                                                                          Investor Presentation
                                                                                       Slide 37
Pending acquisition of minority stake in York Capital important
step in executing on Asset Management strategy
Leverage the           Fills gap in our product offering to institutional and wealth
integrated bank        management clients
                       Combines York’s world-class product suite with Credit Suisse’
                       global distribution

Build leading          York Capital Management is a premier USD 14 bn hedge fund
investment             with 19-year track record and broad-based product platform
capabilities with      Joint equity ownership aligns interests and helps retain best
superior performance   investment talent

Build higher margin,   Investment in management company, not underlying funds
capital-efficient      – Reflects capital-light approach with focus on recurring fee income
business               – Consistent with recently enacted US financial reforms


                                                                                 Investor Presentation
                                                                                              Slide 38
  Gross margin development reflects risk-averse
  client behavior, portfolio shifts and strong asset inflows
  Gross margin in Wealth Management
  Basis points
                              131              131            9M10 vs.   Lower brokerage and integrated solution revenues
                                                           120 2007      and generally less active clients in 9M10
       Transaction-
                                  36    (2)    34    (5)          (7)
        based fees                                          29
                                                                         High cash allocations of over 30% vs. normal of 15%
                                                                         Reduced MIP share in % of AuM and reduced MIP
   Recurring fees                       (7)    48    (2)          (10)
  ("asset-based")                 55                        45           margin (~30bp), reflecting cautious client behavior
                                                                         Strong net new assets of CHF 116 bn over from
                                                                         2008 largely waiting to be fully (re-)invested
   Interest income                             49
                                  40    +9           (3)    46
("lending/deposit-                                                +6     Absolute net interest income remained relatively
           based")
                                                                         flat across periods shown
                             2007             2009         9M10
                                                                         Fluctuation in margin contribution driven by
                                                                         changes in average AuM
   Avg. AuM (CHF bn) 888                       755         820
  AuM = Assets under Management        (15)%         +9%                           MIP = Managed Investment Products, e.g. discretionary mandates, investment
                                                                                                  funds, structured derivatives, hedge funds and private equity



                                                                                                                                     Investor Presentation
                                                                                                                                                  Slide 39
9M10 movement in shareholders’ equity

 Mostly technical items lead to a reduction in shareholders equity (book value), more than
 offsetting earnings contribution
CHF bn
                4.3
   37.5
                                                                                                                          34.1
                              (2.6)         (1.2)
                                                              (1.5)
                                                                                            (2.2)

                +11%         (7)%           (3)%              (4)%                          (6)%


                                            (9)%



   End          9M10        Dividend   Treasury shares /    Foreign                  Consolidation                        End
   2009       net income     2009        share-based       exchange                    changes                           3Q10
                                        compensation        impact
                                                           Note: Included in total, but not shown in graph, are other changes of CHF (0.2) bn



                                                                                                                   Investor Presentation
                                                                                                                                Slide 40
Investment Banking loan book

Developed market lending
 Corporate loan portfolio 78% is investment grade, and is mostly
                                                                         CHF bn
 (91%) accounted for on a fair value basis
 Fair value is a forward looking view which balances accounting               Unfunded                            46
 risks, matching treatment of loans and hedges                             commitments
 Loans are carried at an average mark of approx. 99% with
 average mark of 96% in non-investment grade portfolio                                    Loans                    8
 Continuing good performance of individual credits: limited                           Hedges                    (17)
 specific provisions during the quarter
Emerging market lending
 Well-diversified by name and evenly spread between EMEA,                CHF bn
 Americas and Asia and approx. 30% accounted for on a fair
 value basis                                                                              Loans                   15
 Emerging market loans are carried at an average mark of                              Hedges                      (9)
 approx. 97%
 No significant provisions during the quarter                 Note: Average mark data is net of fair value discounts and credit provisions



                                                                                                               Investor Presentation
                                                                                                                            Slide 41
Private Banking loan book

Total loan book of CHF 182 bn focused on Switzerland and 85% collateralized; primarily on accrual accounting basis
Wealth Management Clients: CHF 132 bn
 Portfolio remains geared towards mortgages (CHF 90 bn) and securities-
 backed lending (CHF 35 bn) with conservative lending standards
 Residential real-estate: Prices for real-estate increase in most regions,
 especially in Zurich, lake Geneva region and major tourist spots, slightly
 declining in structurally weaker regions; outlook: flat with risk of some price   Private Banking Loan Book
 falls only conceivable in the Lake Geneva region and certain tourist regions      Total: CHF 182 bn
Corporate & Institutional Clients: CHF 50 bn                                                         Portfolio ratings
 Over 67% collateralized by mortgages and securities                                            composition, by CRM
 Counterparties mainly Swiss corporates incl. real-estate industry                                 transaction rating
                                                                                      65%
 Sound credit quality with relatively low concentrations;
 Stabilization of portfolio quality in line with continued recovery of Swiss
 economy                                                                            AAA to A
 Ship finance portfolio (CHF 6 bn) remains under special focus due to
 increased risk level caused by overcapacity in the market
 Commercial real-estate: Prices slightly increase for office space, prices for        27%
 retail space move sideways; outlook negative for both office and retail              BBB        6% BB+ to BB
 space due to a slack/ decrease in demand coupled with still growing                             2% BB- and below
 floorspace; central and prime locations less affected by this decline in prices                              LTV = Loan to value



                                                                                                       Investor Presentation
                                                                                                                    Slide 42
Swiss Economy – “AAA” stable
“Switzerland is an advanced, well-diversified and wealthy economy with a track record in macroeconomic stability.”
Fitch Ratings, September 2009

 Swiss                Government debt low before and after crisis                                                               Government Debt in % of
                                                                                                                                                                  Government aid
                                                                                                                                        GDP1
 Economy              Swiss government aid to support banks low compared to                                                                                        to banks as %
                                                                                                                                2009      2010F       2015F         of GDP 20082
                      other countries
                                                                                                          Switzerland            39%         40%         43%                  8%
                      Swiss inflation rate expected to remain low
                                                                                                          Germany                73%         77%         82%                 22%
                      Export led economy with high share of sectors less
                                                                                                          France                 77%         84%         95%                 19%
                      vulnerable to business cycle (e.g. pharmaceuticals, food
                      and medical technology)                                                             UK                     68%         78%         91%                 82%

                      GDP growth expected to be relatively weak for 2011                                  USA                    83%         93%       110%                  81%

                      Low unemployment rate                                                               Japan                218%        227%        249%                  22%

                                                                                                                               Exports of goods                  Current
                            GDP (real, %year-on-year)                       Inflation rate (real, %year-on-year)
                                                                                                                               and services in %           Unemployment
                           20071   20081       20091     2010F3             20071       20081       20091        2010F3          of recent GDP4                    Rate5
Switzerland                 3.6     1.9         (1.9)        2.4                0.7         2.4        (0.5)        0.6                       45.5%                 3.7%

Germany                     2.5     1.2         (4.9)        2.2                2.3         2.8         0.2         0.5                       35.0%                 7.5%

France                      2.3     0.3         (2.1)        1.9                1.6         3.2         0.2         1.5                       27.9%                10.0%

UK                          2.6     0.5         (4.9)        1.4                2.3         3.6         1.8         3.1                       27.1%                 7.7%

USA                         2.1     0.4         (2.4)        3.1                2.9         3.8        (0.7)        1.8                       11.2%                 9.6%

Japan                       2.4    (1.2)        (5.2)        3.3                0.0         1.4        (1.4)       (1.2)                      10.4%                 5.0%

Canada                      2.6     0.4         (2.4)        3.0                2.1         2.4         0.2         1.4                       43.8%                 8.0%

Update: November 5, 2010                  Sources: 1) IMF and Credit Suisse research; 2) IMF; 3) Credit Suisse research; 4) nationmaster.com; 5) The Economist
                                                                                                                                                                  Investor Presentation
                                                                                                                                                                               Slide 43
Continue to grow and diversify our fixed income investor base
             € senior FXD                 € senior FXD (cont'd)
                                                                                 Eurodollar Retail T1
              Mar 08 €2bn         3yr     Sep 10 €1.75bn            5yr
                                                                                                                                 ¥ senior FXD
              Jul 08    €3.65bn   5yr                                             Jun 08 $1.5bn Pnc5.5
                                                                                                                                Sep 08 ¥20bn               5yr
              Dec 08 €850m        5.5yr   € senior FRN                            Aug 10 $1.5bn Pnc5.4                          Mar 10 ¥31.5bn             5yr
              Mar 09 €2bn         3yr     Apr 08 €2.35bn            2yr                                                         Sep 10 ¥40.3bn             5yr
              Aug 09 €2.6bn       10yr    Dec 09 €1.75bn            3yr
                                                                                                                                 ¥ senior FRN
              Jan 10 €2.25bn      7yr     Jun 10 €1.4bn             3yr
                                                                                                                                Sep 08       ¥7.3bn        3yr
                                                                                                                                Sep 08       ¥37bn         5yr
$ Senior FXD
                                                                                                                                Mar 10       ¥18.5bn       5yr
 May 08 $4bn           5yr
                                                                                                                                Sep 10       ¥63.4bn       3.5yr
 Apr 09 $2.25bn        5yr
 Jun 09 $1.3bn         3yr
 Aug 09 $2bn           10yr
 Mar 10 $2bn           5yr                                                                                                       A$ Senior Fixed
                                          CHF senior FXD                    CHF senior FRN                                       Mar 10       A$600m        4yr
 Aug 10 $2bn           10yr
                                          May 08   CHF650m        2yr        Jan 08 CHF300m 3yr
$ LT2                                     Aug 08   CHF700m        5yr        Jun 10 CHF150m 2yr                                  A$ Senior FRN
 Feb 08 $2bn 10yr bullet                  Apr 09   CHF1.2bn       1.5yr                                                          Mar 10 A$500m              4yr
                                          Feb 10   CHF850m        5yr       CHF LT2                                              Sep 10 A$600m              5yr
 Jan 10 $2.5bn 10yr bullet
                                          Apr 10   CHF350m        3yr        Feb 08 CHF500m 10yr
$ Retail Tier 1                           Jun 10   CHF425m        7yr
                                                                             Mar 10 CHF200m 10yr
                                          Nov 10   CHF130m        20yr
 Mar 08 $1.525bn Pnc5
                                            Transactions shown from Jan. 2008 to Nov. 2010 and may not include all deals. Transaction sizes include subsequent taps.


                                                                                                                                             Investor Presentation
                                                                                                                                                          Slide 44
Simplified legal entity overview

                                                          Credit Suisse Group AG


                                                                 Credit Suisse AG
                                                                    Primary issuing entity
                                                                        Regulator: FINMA




            Credit Suisse Holdings (USA), Inc
                     US Holding Company

                                                                    Credit Suisse Securities (Japan) Ltd
                 Credit Suisse (USA), Inc.                                    Japan Securities Dealer
                                                                              Regulator: FSA (Japan)
                                                                                                                          Credit Suisse International (CSi) 1)
                                                                        Credit Suisse (Hong Kong) Ltd                         UK Bank -- Regulator: FSA (UK)
    Credit Suisse Securities (USA) LLC
                                                                           Hong Kong Securities Dealer
               US Broker / Dealer
                                                                                Regulator: SFC
                Regulator: SEC
                                                                                                                         Credit Suisse Securities (Europe) Ltd.
         Credit Suisse Capital LLC                                                                                                 UK Securities Dealer
                                                                   Credit Suisse Equities (Australia) Ltd
          OTC Derivatives Broker/Deale                                                                                             Regulator: FSA (UK)
                                                                            Australian Securities Dealer
               Regulator: SEC                                                     Regulator: SIC



   Information as at July 23, 2010: Simplified legal entity overview shows information for certain legal entities only
   1) CSi: Credit Suisse (Bank) owns 80% and Credit Suisse Group AG owns 20%


                                                                                                                                                Investor Presentation
                                                                                                                                                             Slide 45
Long-term credit ratings overview

      M Moody's: A3                             A2         A1          Aa3         Aa2        Aa1     Aaa              Change since
        S S&P: A-                               A          A+          AA-         AA         AA+     AAA              July 2007
                               1)                                                                   Negative
        Credit Suisse                                        S                                M     outlook           1 notch down (S&P)
                                                                                                                      2 notches down (Moody’s)
      Deutsche Bank                                          S          M                                             2 notches down (S&P)
                                                           Negative                                 Negative          1 notch down (Moody’s)
  JPMorgan Chase 2)                                         outlook     S                     M     outlook
                                                                                                                      1 notch down (S&P)
                                                                                                                      2 notches down (Moody’s)
                 Barclays 3)                              Negative
                                                                       SM
                                                           outlook                                                    1 notch down (S&P)
                                                                                   Negative                           2 notches down (Moody’s)
                UBS AG                                       S           M         outlook                            3 notches down (S&P)
                                               Negative                 Negative                                      3 notches down (Moody’s)
                Citigroup 4)                    outlook    SM           outlook                                       2 notches down (S&P)
                                    Negative                         Negative                                         1 notch down (Moody’s)
    Goldman Sachs                    outlook      S         M        outlook                                          2 notches down (S&P)
                                Negative                   Negative                                                   2 notches down (Moody’s)
     Morgan Stanley              outlook         SM        outlook                                                    2 notches down (S&P)
Note: Unless indicated otherwise, all ratings with
      Stable outlook
                                                                 1) Credit Suisse AG (Bank) 2) JP Morgan Chase Bank NA 3) Barclays Bank Plc 4) Citibank NA


                                                                                                                                            Investor Presentation
                                                                                                                                                         Slide 46
Underlying results in the Corporate Center

CHF m                                                                                             1Q10    2Q10    3Q10              9M10
 Reported pre-tax income / (loss)                                                                   82     126    (613)             (405)

     Impact from the movement of spreads on own debt1)                                            (266)   (982)    528              (720)

     Litigation provisions                                                                           –     216          –              216

     UK bonus levy                                                                                   –     447     (43)                404

 Underlying pre-tax income / (loss)                                                               (184)   (193)   (128)             (505)




The underlying Corporate Center pre-tax loss for 9M10 of CHF (505) m reflects
    consolidation and elimination adjustments
    expenses for centrally sponsored projects
    certain expenses and revenues that have not been allocated to the segments

1) Including fair valuation gains/losses on cross currency swaps relating to our long-term debt                    Note: numbers may not add to total due to rounding



                                                                                                                                             Investor Presentation
                                                                                                                                                          Slide 47
Investor Presentation
             Slide 48

				
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