Private Banking Investor Day Switzerland. Hans-Ulrich Meister, CEO Credit Suisse Switzerland. Zurich, September 22, 2009

Transcription

1 Private Banking Investor Day 2009 Switzerland Hans-Ulrich Meister, CEO Credit Suisse Switzerland Zurich, September 22, 2009

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, 2008 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 annual report 2008 and second quarter report September 22, 2009, Slide 2

3 Switzerland: An attractive market for Credit Suisse Attractive marketplace (e.g., strong and stable economy, high competitiveness) Attractive client base and excellent banking market Credit Suisse well positioned to gain market share September 22, 2009, Slide 3

4 Region Switzerland with strong and stable contribution to Credit Suisse Net revenues Region Switzerland 1) (CHF bn) Net revenues Region Switzerland by business 100% = CHF 4.6 bn; 1H H H H H09 Investment Banking Asset Management 18% 7% 35% Wealth Management Pre-tax income Region Switzerland 1) (CHF bn) Corporate & Retail Banking 40% 2H07 1H08 2H08 1H09 1) Core results incl. Private Banking, Investment Banking and Asset Management September 22, 2009, Slide 4

5 Key financials Private Banking in Switzerland Revenues (CHF mn) Corporate & Retail Banking Wealth Management Switzerland 4'226 4'066 3'982 1'983 2'029 2'102 3'444 1'832 Assets under Management (AuM; CHF bn) Corporate & Retail Banking Wealth Management Switzerland % '243 2'037 1'880 1' H07 1H08 2H08 1H09 Net New Assets (NNA; CHF bn) Corporate & Retail Banking Wealth Management Switzerland H07 1H08 2H08 1H09 2H07 1H08 2H08 1H09 Wealth Management Switzerland gross margin (bp) Transaction-based Recurring H07 1H08 2H08 1H09 September 22, 2009, Slide 5

6 Four priorities to gain market share and grow profits in Private Banking in Switzerland Exploit full potential in & HNWI segments Accelerate growth in prioritized Corporate & Institutional Client segments Retain high quality of loan portfolio Gain market share and grow profits in Switzerland Exploit full potential from collaboration September 22, 2009, Slide 6

7 Segment specific coverage and value proposition Assessment of businesses & HNWI Client segments Assessment of businesses WM UHNWI HNWI Very strong and growing UHNWI business Extremely well positioned to continue to outgrow competitors & market - Dedicated coverage teams with integrated solutions - Focused Billionaires approach with global collaboration and coordination Growing and HNWI businesses, however stagnating market shares - Coverage and value proposition not leveraging all strengths of our platform Inefficient separation of and Private Clients, despite similar client needs and value proposition CRB Private Clients part Private Clients AuM < CHF 250 k Well managed Private Clients business - Premium positioning with high share of clients with AuM > CHF 50 k - Continuous source of talent and wealthy clients September 22, 2009, Slide 7

8 Segment specific coverage and value proposition Key priorities and action focus & HNWI Client segments Key priorities and action focus WM UHNWI Ongoing focus on execution for UHNWI: Gain market share and grow profits fully leveraging existing platform and capabilities HNWI Realign coverage in Switzerland to gain market shares and grow profits in the and HNWI client segments CRB Private Clients part Private Clients AuM < CHF 250 k Align coverage and delivery of superior value to Private Clients with client segment (especially aligning value proposition for clients with AuM CHF 50 k 1 mn) September 22, 2009, Slide 8

9 Segment specific coverage and value proposition Key elements of realigned coverage in Switzerland & HNWI Coverage until July '09 WM UHNWI HNWI CRB Private Clients part Private Clients AuM < 250 k Key elements of realigned coverage in Switzerland Increased client segment focus of our RMs on HNWI or Increased RM portfolio focus in previously heterogeneous client portfolios Enhanced effectiveness of our client servicing Enhanced delivery of superior value to our clients Superior value proposition to and HNWI clients with maximized competence Sharpened value proposition for Private Clients, leveraging clients set-up (Private Clients & clients with very similar needs) Improved our branch network in terms of client proximity and focus Dedicated branches focusing on serving HNWI clients clients being served with higher geographic proximity (fully leveraging our network of around 200 branches) Increased leadership focus & broader opportunities for our frontline employees Stronger focus on people management and supervision Enhanced career models and opportunity to specialize on highly demanding clients Increased our organizational focus Strengthened and focused our advisory & sales capabilities Realigned organizational set-up around target client segments Coverage as of Aug '09 WM UHNWI HNWI (incl. Private Clients) Note: AuM threshold in CHF September 22, 2009, Slide 9

10 Realigned coverage in Switzerland Impact on external reporting in Private Banking Division & HNWI Changes in external reporting Rationale Old Corporate & Retail Banking Corporate & Inst. Clients Swiss Private Clients with AuM < CHF 250 k Private Banking Division AuM 1) : CHF ~ 50 bn Business Volume 1) : CHF ~ 100 bn Revenues (1H09): CHF ~ 0.9 bn Wealth Management Swiss & (U)HNWI clients Internat. individual clients Individual client segments with high similarity: - Same business and value drivers - Similarly structured product/ service mix - Consistent CS premium positioning in all sub-segments Corporate & Institutional Clients with distinctively different characteristics New Corporate & Inst. Clients Corporate & Inst. Clients Wealth Management Clients All Swiss & internat. individual clients 1) As of June 30, 2009 September 22, 2009, Slide 10

11 KPI reconciliation from old to new reporting structure in Private Banking Division & HNWI Estimated and preliminary figures 1H09 Wealth Management (old) Change Wealth Management Clients (new) Revenues (CHF bn) Pre-tax income (CHF bn) Assets under Management (CHF bn) Gross margin (bp) 1) 118 / 111 2) 2) +16 / / 126 Net New Assets (CHF bn) Relationship Managers (#) 3' '080 1) Annualized net revenues divided by average assets under management 2) Before resp. after commission expenses (new reporting) September 22, 2009, Slide 11

12 Segment specific coverage and value proposition Business impact and resulting benefits & HNWI Resulting Win-Win-Win situation Client benefits: (U)HNWI with access to specialists of entire bank Improved service through higher geographic coverage and proximity Targeted, needs-oriented value propositions Employee benefits: Specialization on highly demanding client groups Enhanced, segment-specific core advisory skills Attractive career models NNA 1) ambition in and HNWI client segments until end of 2012: CHF bn Bank benefits: Improved setting to upgrade clients Enlarged continuous talent pool Strong and optimized Wealth Management set-up for profitable, above-market growth in Switzerland 1) Cumulated NNA; excluding UHNWI clients September 22, 2009, Slide 12

13 Accelerating growth in prioritized Corporate & Institutional Client segments Corporate & Inst. Clients Strong position and momentum Growth focus going forward Leading market position maintained and expanded through crisis Key Integrated Bank enabler major revenue, profit, NNA and IB flow contribution Broad offering beyond lending 1), as reflected in business volume (3yrs average) Loans 24% Leverage strong position to accelerate growth in Large Swiss Corporates Expand and extend SME segment offering Leverage state-of-the-art ALM and custody offerings to grow Institutional Clients business 76% Client assets Ambition by 2012 is to grow revenues with 2-5% over GDP (depending on segment) 1) E.g., cash management, asset management, global custody, corporate finance, trade finance, traditional financing (loans) September 22, 2009, Slide 13

14 Retain high quality of loan portfolio Loan portfolio Loan portfolio Private Banking Division CHF bn; as of June 30, 2009 Lombard loans Commercial loans ) Mortgagebacked loans, individual clients Mortgage-backed loans - No real estate "bubble" in Switzerland - Conservative lending parameters applied Commercial loans - Almost 80% secured - Comprehensive set of tools and methodologies Lombard loans - Exposure reduction of CHF 6.2 bn (-17%) from June 2008 to June Conservative credit policy ~90% of portfolio collateralized 1) Including CHF 3.5 bn BANK-now/Swisscard September 22, 2009, Slide 14

15 Sound portfolio quality in commercial loans supported by comprehensive tools and methodologies Loan portfolio Almost 80% secured loans Commercial loans Private Banking Division CHF bn Commercial mortgages 100% = CHF 58.1 bn 37.2 Almost 80% secured Sophisticated risk management approach Single name level - Advanced corporate loan approval process based on comprehensive set of tools (e.g., credit policies & directives, rating models, debt capacity, single obligor limit) - Differentiated risk assessment and pricing according to segment, client size and type of business set-up Other secured Unsecured Diversified across industries 87% investment grade 1) Portfolio level - Sophisticated identification and management of risk positions and industries - Instruments for active portfolio steering in place (e.g., synthetic hedge for credit risk of Swiss SME exposure in 2007) = secured loan = unsecured loan 1H09 1) In line with and corresponding to industry-standard rating classes [e.g., S&P/Fitch AAA to BBB-; Moody's Aaa to Baa3] September 22, 2009, Slide 15

16 Exploit full potential from collaboration Collaboration Collaboration examples across Divisions AM IB 1 2 Private Banking in CH Wealth Management Clients HNWI & UHNWI clients 1 2 Differentiating, high-quality products for PB clients (e.g., discretionary mandates, alternative investments) Joint delivery of tailored client solutions for UHNWI and corporates (e.g., corporate finance/m&a) 3 4 clients with AuM < CHF 1 mn 6 3 Leverage of securities lending pool for additional revenue generation Collaboration revenues of CHF 1.0 bn in CH (1H09) 5 Collaboration examples within Private Banking in CH Corporate & Institutional Clients Development and upgrading of clients to (U)HNWI clients Increased share of wallet through referrals (e.g., business side of individual client) Comprehensive advice in entrepreneurial succession Win-win situation for both clients (comprehensive solutions) and Credit Suisse (additional business) September 22, 2009, Slide 16

17 Wrap-up Switzerland is an excellent market with an attractive and growing profit pool Credit Suisse is well positioned and has a strong platform in order to excel Credit Suisse has clear ambition and action plan to gain market share September 22, 2009, Slide 17

18 September 22, 2009, Slide 18