Private Banking Update

Transcription

1 Private Banking Update Citigroup Swiss Private Banking Roundtable Zurich, September 9, 2008 Martin Mende, Private Banking Head of Business Development

2 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 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, 2007 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 second quarter report September 9, 2008, Page 2

3 Agenda Status & overall Strategy International Growth Client Value Proposition The Integrated Bank Financial Targets September 9, 2008, Page 3

4 Key trends in Wealth Management From... To... Services around free investible assets Focus on total client wealth, including all asset classes as well as liabilities Narrow focus on classical private banking offerings Comprehensive solutions, combining private and investment banking skills Segmentation mostly along asset size and product usage Needs-based segmentation will finally take off Focus on home markets and offshore centers Global business models, on- and offshore capabilities in all major regions September 9, 2008, Page 4

5 Current markets: Where do we stand?! Long-term growth prospects for wealth managers remain intact Rise of emerging markets Generational transfers of wealth Private investment banking! Credit Suisse is well positioned to face challenges and to outperform its competitors Global presence Strong balance sheet Unique Integrated Bank approach September 9, 2008, Page 5

6 Good net new asset growth in Wealth Management NNA growth on AuM in % ) CHF bn WM NNA WM AuM AuM grew by 36% (2004-1H08), representing a CAGR of 9% H08 1) Annualized September 9, 2008, Page 6

7 Continued strong gross margin WM gross margin on AuM (bps) Transaction-based Recurring H08 September 9, 2008, Page 7

8 Credit Suisse as the premier global private bank What will it mean?! We lead the industry in client solutions! We work as part of a truly integrated bank! We are the preferred employer for top performers and talent! We outgrow the competition, globally and in core markets! Our productivity is benchmark! We deliver superior returns to our shareholders Our clients are our ambassadors September 9, 2008, Page 8

9 Private Banking: Strategy overview International growth Market share gains in Switzerland Client value proposition Integrating the banking businesses Productivity and financial performance Best people Premier global private bank Premier bank in Switzerland September 9, 2008, Page 9

10 Agenda Status & overall Strategy International Growth Client Value Proposition The Integrated Bank Financial Targets September 9, 2008, Page 10

11 Strong growth in mature markets and increased presence in key emerging markets Continued turnaround and growth in the US Mexico onshore in preparation Expanded presence in Brazil (Hedging-Griffo) Accelerated growth in Western Europe Gulf: Leverage integrated bank Continued investment in Russia and Eastern Europe India onshore launched Relationship Managers at year-end 4'100 3'140 2' p.a p.a Goal offices in 10 countries/+550 RMs since 2007 China onshore established Japan onshore in preparation Australia onshore launched September 9, 2008, Page 11

12 Our hiring philosophy Prudent economics! Clear business case for each hired RM (NNA, revenues)! Average break-even for RMs months! Focus on pay for performance; limited upfront bonus + Cultural fit! Entrepreneurial spirit! Share our view on how we serve clients! Broad solution and product expertise September 9, 2008, Page 12

13 Region EMEA: Key figures and achievements Key figures AuM (CHF bn) NNA growth 1) Relationship managers Way forward 1H % 1'300 Key achievements! Segment initiatives for UHNWI and entrepreneurs successfully rolled-out! Improved UHNWI coverage! Continuously expanded product offering! Expanded footprint in UK and Italy! Launched India onshore! Launched Austria onshore! Opened offices in Israel, Kazakhstan, Ukraine! Accelerate growth in France, Germany, Italy, Spain and UK! Continue investment into Moscow onshore platform; launch Poland onshore! Further develop the Gulf region in an Integrated Bank approach! Expand UHNWI franchise, e.g., by hiring additional dedicated RMs and improved solution offering! Further roll-out client need segmentation, client profitability and sales cycle 1) Annualized September 9, 2008, Page 13

14 Region Asia-Pacific: Key figures and achievements Key figures AuM (CHF bn) NNA growth 1) Relationship managers Way forward 1H % 440 Key achievements! Launched Australia onshore! Acquired Hindal! Opened branch in Shanghai! Strengthened sales management functions! Continued product innovation! Established UHNWI competence center! Well ahead of hiring targets ytd.! Further invest in regional platform, e.g., product and solution capabilities, operations, shared services! Realize value from new onshore presences (Australia, China, Indonesia)! Launch Japan onshore! Expand UHNWI franchise and leverage Integrated Bank 1) Annualized September 9, 2008, Page 14

15 Region Americas: Key figures and achievements Key figures AuM (CHF bn) NNA growth 1) Relationship managers Way forward 1H % 510 Key achievements! Expanded presence in Latin America Successful integration of Hedging Griffo Opened Panama office! Continued turnaround of US business, e.g., Strengthened management, added various top RMs Expanded service/product suite Opened 4 new offices! Latin America: Further growth Broaden collaboration between CS and Hedging Griffo in Brazil (e.g., referrals, product distribution) Launch Mexico onshore leveraging IB and AM platforms Further enhance product offering! US: Further growth and increase of profitability Continue recruiting best in class RM teams Strengthen products and services by leveraging PB global expertise and Integrated Bank 1) Annualized September 9, 2008, Page 15

16 Agenda Status & overall Strategy International Growth Client Value Proposition The Integrated Bank Financial Targets September 9, 2008, Page 16

17 Client Centricity as strategic way to innovate around client needs Client understanding Segment specific value propositions Advisory process Client profitability Illustrative Life- cycle phase Source of wealth Behavior type Profitable Client 1 Client 2 Client 3 Revenue Not profitable Economic profit! Needs-based customer segmentation! Example: Entrepreneurs as key segment! Targeted offering, e.g., around succession planning! Dedicated Entrepreneur Desks! Comprehensive advice in five structured steps! Boost in client satisfaction! Increased profitability! Client Profit and Loss including Economic Profit! Identification and development of focus clients (sales cycle)! Basis and new insights for growth drivers! Clients' needs met holistically through high-quality advice and service September 9, 2008, Page 17

18 Managed Investment Products as key thrust Benefits Client! Broad risk diversification! Large variety of innovative solutions! Professional investment management Relationship Manager! Broad range of components for tailor made solutions! More time for advice and relationship building! Improved efficiency Bank! Reduced revenue volatility! Higher margins through higher value added! Increased revenues for Investment Banking and Asset Mgmt September 9, 2008, Page 18

19 Agenda Status & overall Strategy International Growth Client Value Proposition The Integrated Bank Financial Targets September 9, 2008, Page 19

20 Unique value proposition to Private Banking clients through integrated coverage and solution delivery Client Relationship Manager Solution Specialists Investment Banking! Traditional services: Equities, FI, FX, Prime Services, Research...! Alternative Investments: Structured Products, Commodities...! Corporate Finance Services: M&A, Equity/ Debt Capital Markets... Private Banking! Financial planning and investment consulting: Pension Planning, Trust Services, Inheritance & Tax Consulting...! Banking products: Payments, Deposits, Lending, Leasing, Cards... Asset Management! Traditional Investment funds: Equities, FI...! Discretionary Mandates! Alternative Investments: Private Equity, Hedge Funds, Real Estate...! Labeled fund solutions!... Shared Services September 9, 2008, Page 20

21 Leveraging the Integrated Bank: Key examples International growth Solution Partners team! Leverage local IB and AM presences for PB market entries! Examples include Brazil, Mexico, Russia, China, Japan and Australia! Enable RMs to find out quickly what the entire bank can offer! Leverage IB and AM capabilities for UHNWI clients! Provide customized solutions across all asset classes with institutional discipline Swiss Entrepreneur/UHNWI desks! Set up of eight dedicated Desks on regional level! Servicing UHNWI and Entrepreneur & Executive clients! Joint cross-divisional offering (PB, IB, AM) Key Client Coverage! Cross-divsional client coverage management for largest clients in all regions! Particularly broad effort in Switzerland, with 1'250 clients covered and over 1'300 employees involved in crossdivisional teams September 9, 2008, Page 21

22 Integrated Bank model maintains momentum Gross margin with Wealth Management clients (in bps) Referred to IB/AM Booked in Wealth Management H07 1H08 September 9, 2008, Page 22

23 Agenda Status & overall Strategy International Growth Client Value Proposition The Integrated Bank Financial Targets September 9, 2008, Page 23

24 Our target: Delivering strong results, while investing continuously and significantly in growth Growth investments of CHF 300m+ p.a.! International platforms! Top Relationship Managers Supported by revenue growth initiatives! Innovative client value proposition! Managed Investment Products! Leverage the integrated bank And stringent cost management! Centers of Excellence! Operational Excellence Medium term-targets Pre-tax income margin > 40% Net new assets growth > 6% (WM only) September 9, 2008, Page 24

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