Presentation at the: Helvea Swiss Equities Conference 2010 Renato Fassbind, Chief Financial Officer Credit Suisse Bad Ragaz, January 14, 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, 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 first and second quarter reports 2009. Slide 1
Differentiated strategic direction: client focused and capital efficient Strategy implementation Counter-cyclical investments in PB Repositioned IB to client businesses AM focused on core competencies Active risk management Aggressive risk reduction and remaining risks well diversified Competitive strengths Consistency in integrated bank strategy, leadership and client coverage resulting in market share gains Delivering strong results Net income of CHF 2.4 bn in 3Q09 and CHF 5.9 bn in 9M09 Return on equity of 25.1% in 3Q09 and 21.8% in 9M09 Strong net asset inflows of CHF 17 bn in 3Q09 and CHF 32 bn in 9M09 Looking ahead PB with attractive industry opportunity and significant operating leverage IB with more sustainable revenue pools, many with potential for growth Well positioned to face changes in industry regulation Capital strength provides flexibility to grow the franchise and deliver attractive returns to shareholders PB = Private Banking IB = Investment Banking AM = Asset Management Slide 2
Our Private Banking business has an attractive industry opportunity and significant performance upside from operating leverage 1 2 3 4 Stable platform as magnet to client business during financial crisis Continued strong inflows and stable revenue margins Continuity in client coverage, advice and solutions delivery Integrated bank as key differentiator Expect to grow at higher rate than market Hiring momentum as foundation for future growth Integrated bank model Global scale and presence with compliant multi-shore offering Anticipated early the regulatory evolution Build-out of onshore businesses in all major markets Industry-leading compliance and cross-border framework Well positioned to benefit from market opportunity Significant upside potential from operating leverage Slide 3
We aim to outgrow the Private Banking market in all regions Medium-term WMC NNA ambition by end of 2012 (NNA growth p.a./cumulated NNA in CHF bn) Unites States 10-15%/25-30 bn Latin America 10-15%/20-25 bn Western Europe 5-7%/35-45 bn Switzerland 4-6%/40-50 bn Middle East/India 10-15%/15-20 bn Russia & CEE 20-25%/10-15 bn Asia Pacific 15-20%/35-45 bn Market growth driven by longterm secular trends Financial market recovery GDP and wealth concentration, especially in emerging markets Private Investment Banking Generational transfer of wealth Competitive landscape is transforming Many players weakened by crisis Winners benefit from flight to quality Scale and ability to invest increasingly important Credit Suisse well positioned to outgrow the market Slide 4
Comprehensive cross-border model in place Continued cross-border growth contribution... Wealth Management net new assets of CHF 160 bn in 2006 to 1H09 Booking centers outside Switzerland 59% Swiss booking center Clients from emerging markets 25% 12% 4% Clients from mature markets Swiss clients... based on sound value proposition and approach Reasons why clients book cross-border Global market access Superior product and service offering Geographical risk diversification Multi-domiciled/multi-shore clients Client privacy Industry-leading compliance framework Slide 5
Private Banking has significant operating leverage as asset base increases from multi-year lows Pre-tax income margin 1) (in bp) 42 40 38 36 34 32 30 28 1H09 2008 2007 650 700 750 800 850 Average AuM (in CHF bn) Operational leverage going forward Average asset under management (AuM) base still at a multi-year low, but expected to increase with market performance and continued inflows Gross margin expected to be maintained Estimated marginal pre-tax income margin of 65 to 70% for additional revenues Resulting in a significant increase of the reported pre-tax income margin Scenario analysis Increase of AuM per advisor to 2007 level of CHF 260 m (up by CHF 60 m from current AuM level) Total additional AuM of CHF 200 bn and additional revenues of CHF 2.3 bn Additional pre-tax income of CHF 1.5-1.6 bn 1) excluding captive insurance proceeds in 1H09 and excluding provisions relating to ARS and provisions relating to the deleveraging of numerous client positions in 4Q08 Slide 6
Investment Banking with strong results and growth potential 1 Differentiated business model generating more sustainable and lower volatility results and strong returns on capital 9M09 pre-tax income margin of 34 % on revenues CHF 17.7 bn; return on economic capital of 38% 9M09 risk-weighted assets reduced by 29% from year-ago; VaR down 46% with no P&L exceptions 2 3 Acceleration of strategy implementation with consistent leadership team and client coverage More sustainable revenue pools, many with potential for growth and continued strong returns on capital deployed Note: all data for 9M09 as reported Slide 7
Positive medium-term outlook for market share and/or market environment in many key businesses Relative revenue contribution from major business lines Strong Credit Suisse market share Upside potential Prime services M&A FX Cash equities Emerging markets Equity capital markets Equity derivatives Leveraged finance Rates Investment ti grade Commodities RMBS trading Relative revenue contribution in 9M09 General direction of movement of business within same-colored segments Revenue growth potential from increasing market share Revenue growth potential from improving environment Some risk of revenue reduction from normalizing environment Worse than historic levels 9M09 market environment Better than historic levels Note: Excludes 1Q09 rebound revenues. Slide 8
Constructive medium-term outlook for overall revenue base Investment Bank 9M09 revenues (in CHF bn) 19.8 4.7 Revenue growth potential from increasing market share 16.2 1) (3.6) 9.8 More sustainable revenues with good growth prospects Revenue growth potential from improving environment Some risk of revenue reduction from normalizing environment 5.3 Greatest risk of revenue reduction 9M09 reported revenues 9M09 winddown losses and other 9M09 adjusted revenues Potential from higher market share Potential from improved environment Potential normalization of environment 1) 9M09 reported revenues from all businesses, excluding rebound revenue of CHF 1.3 bn in 1Q09 Slide 9
Evolving industry landscape Regulatory focus areas Capital Leverage Liquidity Compensation structure Credit Suisse well positioned Strategy adjusted early: client focused and capital efficient business model with significantly reduced risks Maintained exceptionally strong capital position Strong funding and liquidity Developed state of the art compensation structure consistent with G-20 principles Slide 10
Summary Our franchise has gained significant momentum Lack of disruption led to continuity of leadership team and strategy with consistent coverage of client base Stability has led to being employer of choice in many businesses Private Banking with attractive industry opportunity and significant operating leverage Investment Banking with more sustainable revenue pools, many with potential for growth Asset Management with significant progress on executing re-focused business strategy; leading to upside potential in financial performance Capital strength already positions us well to face changing industry regulation while providing flexibility to grow the franchise and achieving attractive returns, with the potential to return excess capital to shareholders Slide 11
Slide 12