QUARTERLY REPORT
Q4 AND FINANCIAL REVIEW 2002
Editorial
Financial highlights Q4/2002
An overview of Credit Suisse Group
Risk Management
Credit Suisse Financial Services
Credit Suisse First Boston
Reconciliation of operating to
consolidated results
Consolidated results Credit Suisse Group
Information
for investors
Credit Suisse
Group is a leading global financial services company headquartered in Zurich.
Credit Suisse Financial Services provides private clients and small and medium-sized
companies with private
banking and financial advisory services, banking products, and pension and insurance
solutions from Winterthur. Credit Suisse First Boston, the investment bank,
serves global institutional, corporate, government and individual clients in
its role as a financial intermediary. Credit Suisse Groups registered shares
(CSGN) are listed in Switzerland and Frankfurt, and in the form of American
Depositary Shares (CSR) in New York. The Group employs around 78,000 staff worldwide.
1 Editorial
2 Financial highlights Q4/2002 4 An overview of Credit Suisse Group 9 Risk Management
12 Review of business units 12 Credit Suisse Financial Services 22 Credit Suisse
First Boston 33 Reconciliation of operating to consolidated results 37 Consolidated
results Credit Suisse Group 37 Consolidated income statement 38 Consolidated
balance sheet 44 Information for investors
Cautionary
statement regarding forward-looking information
This Quarterly
Report contains statements that constitute forward-looking statements. In addition,
in the future we, and others on our behalf, may make statements that constitute
forward-looking statements. Such forward-looking statements may include, without
limitation, statements relating to our plans, objectives or goals; our future
economic performance or prospects; the potential effect on our future performance
of certain contingencies; and assumptions underlying any such statements.
Words such
as believes, anticipates, expects, intends and plans and
similar expressions are intended to identify forward-looking statements but
are not the exclusive means of identifying such statements. We do not intend
to update these forward-looking statements except as may be required by applicable
laws.
By their
very nature, forward-looking statements involve inherent risks and uncertainties,
both general and specific, and risks exist that predictions, forecasts, projections
and other outcomes described or implied in forward-looking statements will not
be achieved. We caution you that a number of important factors could cause results
to differ materially from the plans, objectives, expectations, estimates and
intentions expressed in such forward-looking statements. These factors include
(i) market and interest rate fluctuations; (ii) the strength of the global economy
in general and the strength of the economies of the countries in which we conduct
our operations in particular; (iii) the ability of counterparties to meet their
obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade
and tax policies, and currency fluctuations; (v) political and social developments,
including war, civil unrest or terrorist activity; (vi) the possibility of foreign
exchange controls, expropriation, nationalization or confiscation of assets
in countries in which we conduct our operations; (vii) the ability to maintain
sufficient liquidity and access capital markets; (viii) operational factors
such as systems failure, human error, or the failure to properly implement procedures;
(ix) actions taken by regulators with respect to our business and practices
in one or more of the countries in which we conduct our operations; (x) the
effects of changes in laws, regulations or accounting policies or practices;
(xi) competition in geographic and business areas in which we conduct our operations;
(xii) the ability to retain and recruit qualified personnel; (xiii) the ability
to maintain our reputation and promote our brands; (xiv) the ability to increase
market share and control expenses; (xv) technological changes; (xvi) the timely
development and acceptance of our new products and services and the perceived
overall value of these products and services by users; (xvii) acquisitions,
including the ability to integrate successfully acquired businesses; (xviii)
the adverse resolution of litigation and other contingencies; and (xix) our
success at managing the risks involved in the foregoing.
We caution
you that the foregoing list of important factors is not exclusive; when evaluating
forward-looking statements, you should carefully consider the foregoing factors
and other uncertainties and events, as well as the risks identified in our most
recently filed Form 20-F and reports on Form 6-K furnished to the US Securities
and Exchange Commission.
EDITORIAL
Oswald
J. Grübel
Co-CEO Credit
Suisse Group
Chief Executive
Officer Credit
Suisse Financial Services
John
J. Mack
Co-CEO Credit
Suisse Group
Chief Executive
Officer Credit
Suisse First Boston
Dear shareholders,
clients and colleagues
Credit Suisse
Groups performance in the fourth quarter and full year 2002 was not satisfactory.
To position the Group for profitability in 2003, we took aggressive steps during
the year to address investment losses in our insurance business, set aside provisions
for regulatory and litigation matters, reduce our exposure to legacy assets
in our investment banking business and reduce costs across the Group. While
we have taken these actions, our core businesses continued to hold leadership
positions in key markets.
In the fourth
quarter of 2002, the Group reported a net loss of CHF 950 million, compared
with a net loss of CHF 2.1 billion in the third quarter. For the full year 2002,
the Group posted a net loss of CHF 3.3 billion, compared with a net profit of
CHF 1.6 billion in 2001.
The business
unit Credit Suisse Financial Services reported a net profit of CHF 705 million
in the fourth quarter, including exceptional items of CHF 73 million recognized
as a result of focusing the European initiative on private banking clients,
and a net loss of CHF 165 million for the full year.
Private
Banking delivered a slightly higher profit than in the third quarter, despite
project costs and low transaction-based income. Corporate & Retail Bankings
profit was down quarter-on-quarter but up for the full year.
Despite
continuing weakness in the financial markets, both Life & Pensions and Insurance
returned to profitability in the fourth quarter. This was attributable to a
satisfactory operating performance and the positive impact of a change in accounting
principles. Winterthur is continuing to focus on achieving profitability for
2003 by concentrating on core markets, right pricing and the reduction of administration
costs, with less reliance on investment income than in the past.
The business
unit Credit Suisse First Boston recorded a net loss for the fourth quarter of
USD 811 million (CHF 1.3 billion), including a number of after-tax exceptional
items totaling USD 813 million (CHF 1.3 billion), and a net loss of USD 1.2
billion (CHF 1.9 billion) for the year 2002.
Credit Suisse
First Boston faced deteriorating conditions in the equity and investment banking
businesses throughout the year but succeeded in maintaining its market shares
and rankings, while implementing a cost reduction program and reducing its exposure
to certain legacy private equity, real estate and distressed debt assets. Revenues
declined 21% in 2002 compared with the previous year. Full year operating expenses
at Credit Suisse First Boston were down 23% compared with 2001. Credit Suisse
First Boston also reached an agreement in principle with certain US regulators
in the fourth quarter to settle US investigations relating to research analyst
independence and IPO allocations.
The Groups
consolidated BIS tier 1 ratio stood at 9.7% as of December 31, 2002, up from
9.0% at the end of the third quarter, while the banking BIS tier 1 ratio rose
to 10.0%. Winterthurs solvency margin stood at 167% at the end of the fourth
quarter, compared with 155% as of September 30, 2002. Through the issuance of
Mandatory Convertible Securities, the prudent management of risk-weighted assets,
provisioning for inherent loan losses and litigation in the US, and the future
impact on capital of the Pershing sale, we are entering 2003 with a stronger
balance sheet and an improved capital base.
As Credit
Suisse Group emerges from an unusually difficult year, we together with the
Groups entire management team are focusing intensively on
restoring the Group to profitability in the year ahead, to create value for
our shareholders, clients and employees.
Oswald
J. Grübel John J. Mack
February
2003
CREDIT
SUISSE GROUP FINANCIAL HIGHLIGHTS Q4/2002
Consolidated
income statement |
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Change |
Change |
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Change |
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in
% from |
in
% from |
12
months |
in
% from |
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in
CHF m |
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4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
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Operating
income |
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|
6'395 |
5'666 |
8'161 |
13 |
(22) |
28'038 |
39'154 |
(28) |
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Gross
operating profit |
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|
1'284 |
314 |
1'264 |
309 |
2 |
4'509 |
8'870 |
(49) |
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Net
profit/(loss) |
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(950) |
(2'148) |
(830) |
(56) |
14 |
(3'309) |
1'587 |
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Return
on equity |
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Change |
Change |
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Change |
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in
% from |
in
% from |
12
months |
in
% from |
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in
% |
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4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
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Return
on equity |
|
|
(13.0) |
(26.9) |
(9.3) |
(52) |
40 |
(10.0) |
4.1 |
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Consolidated
balance sheet |
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Change |
Change |
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in
% from |
in
% from |
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in
CHF m |
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31.12.02 |
30.09.02 |
31.12.01 |
30.09.02 |
31.12.01 |
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Total
assets |
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955'656 |
999'158 |
1'022'513 |
(4) |
(7) |
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Shareholders
equity |
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|
31'394 |
32'461 |
38'921 |
(3) |
(19) |
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Minority
interests in shareholders equity |
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|
2'878 |
3'071 |
3'121 |
(6) |
(8) |
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Capital
data |
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Change |
Change |
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in
% from |
in
% from |
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in
CHF m |
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31.12.02 |
30.09.02 |
31.12.01 |
30.09.02 |
31.12.01 |
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BIS
risk-weighted assets |
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201'466 |
218'700 |
222'874 |
(8) |
(10) |
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BIS
tier 1 capital |
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19'544 |
19'669 |
21'155 |
(1) |
(8) |
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of
which non-cumulative perpetual preferred securities |
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2'162 |
2'218 |
2'076 |
(3) |
4 |
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BIS
total capital |
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|
|
|
33'290 |
33'647 |
34'888 |
(1) |
(5) |
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Solvency
capital Winterthur |
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|
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|
10'528 |
10'127 |
8'555 |
4 |
23 |
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Capital
ratios |
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in
% |
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|
31.12.02 |
30.09.02 |
31.12.01 |
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BIS
tier 1 ratio |
Credit
Suisse |
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7.4 |
7.0 |
6.9 |
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Credit
Suisse First Boston |
1) |
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10.3 |
11.9 |
12.9 |
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Credit
Suisse Group |
2) |
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|
9.7 |
9.0 |
9.5 |
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Credit
Suisse Group (banking) |
3) |
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10.0 |
9.4 |
8.8 |
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BIS
total capital ratio |
Credit
Suisse Group |
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16.5 |
15.4 |
15.7 |
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EU
solvency margin |
Winterthur |
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167.5 |
155.1 |
128.6 |
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Assets
under management/client assets
4) |
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Change |
Change |
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in
% from |
in
% from |
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|
in
CHF bn |
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|
|
31.12.02 |
30.09.02 |
31.12.01 |
30.09.02 |
31.12.01 |
|
|
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|
Advisory
assets under management |
|
|
|
|
|
605.1 |
606.3 |
723.5 |
0 |
(16) |
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Discretionary
assets under management |
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|
|
590.2 |
615.5 |
707.1 |
(4) |
(17) |
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Total
assets under management |
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|
1'195.3 |
1'221.8 |
1'430.6 |
(2) |
(16) |
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Client
assets |
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|
|
1'793.2 |
1'821.0 |
2'138.2 |
(2) |
(16) |
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Net
new assets
4) |
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|
Change |
Change |
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Change |
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in
% from |
in
% from |
12
months |
in
% from |
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|
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|
|
in
CHF bn |
|
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
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|
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Net
new assets |
|
|
(6.6) |
(13.7) |
18.5 |
(52) |
|
(2.6) |
67.5 |
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1)
Ratio is based on a tier 1 capital of CHF 10.6 bn (30.09.02: CHF
13.3 bn; 31.12.01: CHF 15.2 bn), of which non-cumulative perpetual
preferred securities is CHF 1.0 bn (30.09.02: CHF 1.1 bn; 31.12.01: CHF
1.1 bn). |
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2)
Ratio
is based on a tier 1 capital of CHF 19.5 bn (30.09.02: CHF 19.7 bn;
31.12.01: CHF 21.2 bn), of which non-cumulative perpetual preferred
securities is CHF 2.2 bn (30.09.02: CHF 2.2 bn; 31.12.01: CHF 2.1 bn). |
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3)
Ratio is based on a tier 1 capital of CHF 19.7 bn (30.09.02: CHF
20.2 bn; 31.12.01: CHF 19.4 bn), of which non-cumulative perpetual
preferred securities is CHF 2.2 bn (30.09.02: CHF 2.2 bn; 31.12.01: CHF
2.1 bn). |
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4)
Certain reclassifications have been made to conform to the current
presentation. |
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Number
of employees |
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|
Change |
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Change |
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in
% from |
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in
% from |
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|
|
|
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
30.09.02 |
|
31.12.01 |
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|
Switzerland |
banking |
|
|
|
|
|
|
21'270 |
21'700 |
21'794 |
(2) |
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(2) |
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|
insurance |
|
|
|
|
|
|
7'063 |
7'169 |
6'849 |
(1) |
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3 |
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Outside
Switzerland |
banking |
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25'057 |
26'586 |
28'415 |
(6) |
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(12) |
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|
insurance |
|
|
|
|
|
|
25'067 |
24'982 |
23'103 |
0 |
|
9 |
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Total
employees Credit Suisse Group |
|
|
|
|
|
|
|
78'457 |
80'437 |
80'161 |
(2) |
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(2) |
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Share
data |
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Change |
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Change |
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in
% from |
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in
% from |
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31.12.02 |
30.09.02 |
31.12.01 |
30.09.02 |
|
31.12.01 |
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Shares
issued |
|
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|
1'189'891'720 |
1'189'348'956 |
1'196'609'811 |
0 |
|
(1) |
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|
|
|
|
|
|
|
|
|
To
be issued upon conversion of MCS
1) |
|
|
|
|
|
|
|
40'413'838 |
0 |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
repurchased
2) |
|
|
|
|
|
|
|
0 |
0 |
7'730'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding |
|
|
|
|
|
|
|
1'230'305'558 |
1'189'348'956 |
1'188'879'811 |
3 |
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price in CHF |
|
|
|
|
|
|
|
30.00 |
28.90 |
70.80 |
4 |
|
(58) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market
capitalization in CHF m |
|
|
|
|
|
|
|
36'909 |
34'372 |
84'173 |
7 |
|
(56) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book
value per share in CHF |
|
|
|
|
|
|
|
23.18 |
24.71 |
29.92 |
(6) |
|
(23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Maximum number of shares related to Mandatory Convertible Securities (MCS)
issued by Credit Suisse Group Finance (Guernsey) Ltd. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
Shares cancelled on 09.08.02, as previously approved by the Annual General
Meeting. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
price |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
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|
|
Change |
Change |
|
|
|
Change |
|
|
|
|
|
|
|
|
in
% from |
in
% from |
12
months |
|
in
% from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF |
|
4Q2002 |
|
3Q2002 |
|
4Q2001 |
|
3Q2002 |
4Q2001 |
2002 |
2001 |
|
2001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High
(closing price) |
|
35.70 |
|
48.85 |
|
71.30 |
|
(27) |
(50) |
73.60 |
87.00 |
|
(15) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low
(closing price) |
|
20.60 |
|
26.80 |
|
51.60 |
|
(23) |
(60) |
20.60 |
44.80 |
|
(54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Change |
Change |
|
|
|
Change |
|
|
|
|
|
|
|
|
in
% from |
in
% from |
12
months |
|
in
% from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF |
|
4Q2002 |
|
3Q2002 |
|
4Q2001 |
|
3Q2002 |
4Q2001 |
2002 |
2001 |
|
2001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
|
(0.80) |
|
(1.81) |
|
(0.70) |
|
(56) |
14 |
(2.78) |
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share |
|
(0.80) |
|
(1.81) |
|
(0.69) |
|
(56) |
16 |
(2.77) |
1.32 |
|
|
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|
|
|
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|
|
|
|
AN
OVERVIEW OF CREDIT SUISSE GROUP
Credit
Suisse Group reported a net loss of CHF 950 million in the fourth quarter of
2002, compared with a net loss of CHF 2.1 billion in the third quarter of 2002.
Credit Suisse Financial Services reported a net profit of CHF 705 million in
the fourth quarter. Credit Suisse First Boston recorded a net loss of USD 811
million (CHF 1.3 billion) in the fourth quarter, including after-tax exceptional
items totaling USD 813 million (CHF 1.3 billion). For the full year 2002, the
Group posted a net loss of CHF 3.3 billion, compared with a net profit of CHF
1.6 billion in 2001. In spite of this unsatisfactory result, the Group is entering
2003 with a stronger balance sheet and an improved capital base.
Continuing
financial market weakness and a number of exceptional items impacted Credit
Suisse Groups results in the fourth quarter of 2002.
Winterthur's
results recovered in the fourth quarter, with both Life & Pensions and Insurance
returning to profitability due to a satisfactory operating performance and the
positive impact of a change in accounting principles. Private Banking recorded
a slightly higher profit than in the third quarter, despite project costs and
low transaction-based income. Corporate & Retail Bankings profit was down
versus the third quarter but up for the full year. Credit Suisse Financial Services
reported a net profit of CHF 705 million in the fourth quarter, including exceptional
items of CHF 73 million recognized in connection with the focusing of the European
initiative on private banking clients. This compared with a net loss of CHF
1.2 billion in the third quarter 2002.
Credit Suisse
First Boston posted a fourth quarter net loss of USD 811 million (CHF 1.3 billion),
compared to a net loss of USD 425 million (CHF 679 million) in the previous
quarter. This result reflects a pre-tax charge of USD 450 million (CHF 702 million)
for private litigation involving research analyst independence, certain IPO
allocation practices, Enron and other related litigation; a pre-tax charge of
USD 150 million (CHF 234 million) for the agreement in principle with various
US regulators involving research analyst independence and the allocation of
IPO shares to executive officers; an after-tax loss of USD 250 million (CHF
390 million) in connection with the sale of Pershing; and a pre-tax restructuring
charge of USD 204 million (CHF 319 million) in connection with Credit Suisse
First Bostons USD 500 million cost reduction program. These combined items
had a total pre-tax impact of USD 890 million (CHF 1.4 billion), or USD 813
million (CHF 1.3 billion) after tax, in the fourth quarter.
Credit Suisse
Group announced a change in its accounting principles in the fourth quarter
of 2002 to allow for the recognition of deferred tax assets with respect to
net operating losses, resulting in a positive cumulative effect of CHF 520 million
from prior years and CHF 1.3 billion for the financial year 2002. Additionally,
CHF 778 million of the increase in loan loss provisions recorded by the Group
in the fourth quarter relates to an adjustment in the method of estimating inherent
losses related to lending activities, to better reflect the current credit environment.
This was offset by a release of the reserve for general banking risks, which
was reported as extraordinary income. After accounting for the Corporate Center,
which includes writedowns on the Groups investments in Swiss International
Airlines and Warburg Pincus Private Equity of CHF 112 million and CHF 134 million,
respectively, Credit Suisse Group reported a net loss of CHF 950 million for
the fourth quarter of 2002. This compared with a net loss of CHF 2.1 billion
in the third quarter 2002 and a net loss of CHF 830 million in the fourth quarter
of 2001. For the full year 2002, after accounting for the Corporate Center,
which includes writedowns on the Groups participation in Swiss Life of CHF
539 million, in addition to the above-mentioned writedowns in the fourth quarter,
the Group reported a net loss of CHF 3.3 billion, compared with a net profit
of CHF 1.6 billion for the previous year. Earnings per share for 2002 amounted
to a loss of CHF 2.78 versus a profit of CHF 1.33 for 2001, and the Groups
return on equity was -10.0% versus 4.1% in 2001.
Equity
capital
Credit Suisse
Groups consolidated BIS tier 1 ratio stood at 9.7% as of December 31, 2002,
up from 9.0% at the end of the third quarter of 2002. This was attributable
to the issuance by the Group of Mandatory Convertible Securities of CHF 1.25
billion in December 2002, as well as to a reduction in risk-weighted assets
and the currency translation effect of the lower US dollar versus the Swiss
franc. The Mandatory Convertible Securities issue qualifies as equity capital
and, accordingly, as tier 1 capital under BIS rules. The BIS tier 1 ratio for
the Groups banking business stood at 10.0% as of December 31, 2002, up from
9.4% at the end of the third quarter. Winterthurs solvency margin (calculated
in line with the EU directive) stood at 167% at the end of 2002, compared with
155% as of September 30, 2002.
The sale
of Pershing to The Bank of New York, expected to close in the first half of
2003 subject to certain regulatory and other conditions, will increase the regulatory
capital of Credit Suisse First Boston and Credit Suisse Group through the elimination
of USD 500 million (CHF 695 million) of goodwill and a USD 1.6 billion (CHF
2.2 billion) reduction in risk-weighted assets. Furthermore, the sale will result
in the elimination of USD 900 million (CHF 1.3 billion) of acquired intangible
assets before tax, or USD 585 million (CHF 813 million) after tax.
The Group
has strengthened its balance sheet and improved its capital base through the
issuance of Mandatory Convertible Securities, the prudent management of risk-weighted
assets, provisioning for inherent loan losses and litigation in the US, and
the future impact on capital of the Pershing sale.
Net
new assets
Credit Suisse
Financial Services reported a net asset outflow of CHF 0.6 billion in the fourth
quarter 2002, with net inflows of CHF 0.5 billion at Private Banking and of
CHF 0.2 billion at Corporate & Retail Banking offset by a net outflow of
CHF 1.3 billion from Life & Pensions. At Private Banking, net new assets
declined versus the third quarter due mainly to the impact of increased attention
surrounding Credit Suisse Groups financial performance in the course of 2002.
Credit Suisse First Boston reported a net asset outflow of CHF 6.0 billion in
the fourth quarter, as a CHF 2.7 billion net inflow of private client assets
was offset by a net outflow of CHF 8.7 billion from Credit Suisse Asset Management
related primarily to performance issues. For Credit Suisse Group, an overall
net asset outflow of CHF 6.6 billion was recorded in the fourth quarter, compared
with a net outflow of CHF 13.7 billion in the third quarter 2002. For the
full year 2002, the Group reported a net asset outflow of CHF 2.6 billion, as
CHF 18.9 billion in net new assets reported by Credit Suisse Financial Services related primarily to Private Banking were offset by outflows of CHF 21.5
billion from Credit Suisse First Boston. The Groups total assets under management
stood at CHF 1,195.3 billion as of December 31, 2002, corresponding to a decline
of 2.2% versus September 30, 2002, and a decrease of 16.4% versus year-end 2001.
Operating
income and expenses
The Groups
operating income stood at CHF 6.4 billion in the fourth quarter 2002, up 13%
on the previous quarter but down 22% on the fourth quarter of 2001. Credit Suisse
Financial Services reported a 54% increase in operating income to CHF 3.5 billion
versus the third quarter, reflecting a CHF 1.2 billion increase in operating
income in the insurance business and stable operating income in banking. At
Private Banking, operating income rose 3% to CHF 1.5 billion but remained below
the average of the previous quarters due to investor inactivity and a reduced
asset base. Corporate & Retail Banking posted a 7% decrease in operating
income quarter- on-quarter due, in particular, to a decrease in transaction-related
commission income. At Credit Suisse First Boston, fourth quarter operating income
was down 11% on the previous quarter to USD 2.4 billion (CHF 3.4 billion), mainly
reflecting revenue declines in the Fixed Income and Equity businesses, as well
as at CSFB Financial Services. For the full year 2002, the Groups operating
income stood at CHF 28.0 billion, down 28% on the previous year.
Including
restructuring charges presented as exceptional items at the business units,
the Groups operating expenses decreased 5% quarter-on-quarter to CHF 5.1 billion,
and were down 26% on the fourth quarter 2001. At Credit Suisse Financial Services,
fourth quarter operating expenses remained stable quarter-on-quarter and year-on-year
despite expansion in certain markets. At Credit Suisse First Boston, fourth
quarter operating expenses decreased 14% in US dollar terms versus the third
quarter and were down 13% on the fourth quarter of 2001, reflecting continued
efforts to adapt the business units cost structure to the current environment.
The Groups full year operating expenses declined 22% versus 2001 to CHF 23.5
billion, primarily as a result of headcount reductions, a significant decrease
in bonuses and the sale of non-core businesses.
Valuation
adjustments, provisions and losses
Fourth quarter
valuation adjustments, provisions and losses include a charge of CHF 778 million
relating to an adjustment in the method of estimating inherent losses related
to lending activities. This adjustment was considered necessary to better reflect
in the loan provision the continued deterioration of the credit markets. The
impact on the income statement of this charge, after tax, was offset by a release
from the reserve for general banking risks, which was recorded as extraordinary
income. Excluding the provision for inherent loan losses, credit provisions
were CHF 637 million in the fourth quarter 2002, down 22% versus the third quarter,
and were CHF 2.3 billion for the full year 2002, up 34% versus 2001, reflecting
the deterioration in the credit environment globally.
Overall,
total valuation adjustments, provisions and losses were CHF 2.4 billion in the
fourth quarter, reflecting the provision for inherent loan losses, US legal
provisions, and increased valuation adjustments and losses.
Recognition
of deferred tax assets on net operating losses
Credit Suisse
Group changed its accounting principles in the fourth quarter of 2002 to allow
for the recognition of deferred tax assets on net operating losses. As a result
of this change, a positive cumulative effect of CHF 520 million was recognized
from prior years and CHF 1.3 billion for 2002. At Credit Suisse Financial Services,
fourth quarter net profit benefited from the first-time recognition of deferred
tax assets on net operating losses in the amount of CHF 472 million for 2002,
as well as a cumulative effect of CHF 266 million from prior years, primarily
at Winterthur. At Credit Suisse First Boston, the fourth quarter net result
reflects a benefit of USD 556 million (CHF 868 million) related to 2002, as
well as a positive cumulative effect of USD 162 million (CHF 254 million) from
prior years.
Dividend
proposal
The Groups
Board of Directors has decided to propose a dividend of CHF 0.10 per share to
the Annual General Meeting on April 25, 2003. This compares to a par value reduction
of CHF 2 per share for the financial year 2001. If approved by the Annual General
Meeting on April 25, 2003, this dividend will be paid out on May 2, 2003.
Outlook
Credit Suisse
Group remains cautious in its outlook for 2003 given the continued challenging
market environment and global uncertainty. The Group continues to expect that
the measures taken during 2002, as well as those being implemented in 2003,
will restore its profitability in 2003. Additionally, the Group is entering
2003 with a stronger balance sheet and an improved capital base.
Overview
of business unit results
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
Credit
Suisse First Boston |
|
Adjust.
incl. Corporate Center |
|
Credit
Suisse Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
|
4Q2002 |
3Q2002 |
4Q2001 |
|
4Q2002 |
3Q2002 |
4Q2001 |
|
4Q2002 |
3Q2002 |
4Q2001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
3'517 |
2'289 |
3'582 |
|
3'321 |
3'757 |
4'572 |
|
(443) |
(380) |
7 |
|
6'395 |
5'666 |
8'161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
1'408 |
1'490 |
1'244 |
|
1'896 |
2'179 |
3'174 |
|
160 |
124 |
207 |
|
3'464 |
3'793 |
4'625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
896 |
884 |
1'065 |
|
1'184 |
1'157 |
1'747 |
|
(433) |
(482) |
(540) |
|
1'647 |
1'559 |
2'272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
2'304 |
2'374 |
2'309 |
|
3'080 |
3'336 |
4'921 |
|
(273) |
(358) |
(333) |
|
5'111 |
5'352 |
6'897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
operating profit/(loss) |
|
1'213 |
(85) |
1'273 |
|
241 |
421 |
(349) |
|
(170) |
(22) |
340 |
|
1'284 |
314 |
1'264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets
2) |
|
334 |
289 |
296 |
|
156 |
209 |
282 |
|
144 |
94 |
121 |
|
634 |
592 |
699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
92 |
31 |
52 |
|
308 |
308 |
379 |
|
3 |
(2) |
(4) |
|
403 |
337 |
427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
105 |
91 |
48 |
|
1'977 |
867 |
1'207 |
|
342 |
15 |
34 |
|
2'424 |
973 |
1'289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before extraordinary items, cumulative effect of change in accounting
principle and taxes |
|
682 |
(496) |
877 |
|
(2'200) |
(963) |
(2'217) |
|
(659) |
(129) |
189 |
|
(2'177) |
(1'588) |
(1'151) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
24 |
6 |
8 |
|
220 |
(1) |
0 |
|
125 |
(136) |
(265) |
|
369 |
(131) |
(257) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle
3) |
|
266 |
|
|
|
254 |
|
|
|
0 |
|
|
|
520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes
3) |
|
(318) |
(692) |
(150) |
|
474 |
285 |
633 |
|
162 |
(3) |
55 |
|
318 |
(410) |
538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
654 |
(1'182) |
735 |
|
(1'252) |
(679) |
(1'584) |
|
(372) |
(268) |
(21) |
|
(970) |
(2'129) |
(870) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
51 |
17 |
22 |
|
0 |
0 |
(1) |
|
(31) |
(36) |
19 |
|
20 |
(19) |
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) 3) |
|
705 |
(1'165) |
757 |
|
(1'252) |
(679) |
(1'585) |
|
(403) |
(304) |
(2) |
|
(950) |
(2'148) |
(830) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
The Groups consolidated results are prepared in accordance with Swiss
GAAP, while the Groups segment reporting principles are applied to the
presentation of segment results. The business unit results reflect the
results of the separate segments comprising the respective business units
as well as certain acquisition-related costs and exceptional items that
are not allocated to the segments. For a complete reconciliation of the
business unit results to the Groups consolidated results and a
discussion of the material reconciling items, please refer to pages 33-36. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
Includes amortization of Present Value of Future Profits (PVFP) from the
insurance business within Credit Suisse Financial Services. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses. If the change in accounting principle had not been adopted in
4Q2002, taxes in 4Q2002 would have been CHF -790 m for Credit Suisse
Financial Services, CHF -394 m for Credit Suisse First Boston and CHF
-1,023 m for Credit Suisse Group. The retroactive application of this
change in accounting principle would have resulted in taxes for 4Q2002,
3Q2002 and 4Q2001 for Credit Suisse Financial Services of CHF -635 m, CHF
-593 m and CHF -209 m, respectively, for Credit Suisse First Boston of CHF
276 m, CHF 290 m and CHF 909 m, respectively, and for Credit Suisse Group
of CHF -198 m, CHF -306 m and CHF 755 m, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management/client assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
% from |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF bn |
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private
Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management |
|
|
|
|
488.0 |
494.5 |
546.8 |
(1.3) |
(10.8) |
|
|
|
|
|
|
|
|
|
|
of
which discretionary |
|
|
|
|
121.6 |
123.8 |
131.5 |
(1.8) |
(7.5) |
|
|
|
|
|
|
|
|
|
|
Client
assets |
|
|
|
|
518.0 |
526.7 |
583.3 |
(1.7) |
(11.2) |
|
|
|
|
|
|
|
|
|
|
Corporate
& Retail Banking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management |
|
|
|
|
48.0 |
47.8 |
55.9 |
0.4 |
(14.1) |
|
|
|
|
|
|
|
|
|
|
Client
assets |
|
|
|
|
63.1 |
63.1 |
73.3 |
0.0 |
(13.9) |
|
|
|
|
|
|
|
|
|
|
Life
& Pensions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management (discretionary) |
|
|
|
|
110.8 |
113.0 |
115.2 |
(1.9) |
(3.8) |
|
|
|
|
|
|
|
|
|
|
Client
assets |
|
|
|
|
110.8 |
113.0 |
115.2 |
(1.9) |
(3.8) |
|
|
|
|
|
|
|
|
|
|
Insurance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management (discretionary) |
|
|
|
|
30.7 |
31.1 |
30.5 |
(1.3) |
0.7 |
|
|
|
|
|
|
|
|
|
|
Client
assets |
|
|
|
|
30.7 |
31.1 |
30.5 |
(1.3) |
0.7 |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management |
|
|
|
|
677.5 |
686.4 |
748.4 |
(1.3) |
(9.5) |
|
|
|
|
|
|
|
|
|
|
of
which discretionary |
|
|
|
|
264.7 |
269.2 |
278.9 |
(1.7) |
(5.1) |
|
|
|
|
|
|
|
|
|
|
Client
assets |
|
|
|
|
722.6 |
733.9 |
802.3 |
(1.5) |
(9.9) |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse First Boston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management |
|
|
|
|
31.3 |
35.2 |
41.7 |
(11.1) |
(24.9) |
|
|
|
|
|
|
|
|
|
|
of
which Private Equity on behalf of clients (discretionary) |
|
|
|
|
20.9 |
24.7 |
29.3 |
(15.4) |
(28.7) |
|
|
|
|
|
|
|
|
|
|
Client
assets |
|
|
|
|
83.9 |
86.8 |
121.7 |
(3.3) |
(31.1) |
|
|
|
|
|
|
|
|
|
|
CSFB
Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management |
|
|
|
|
486.5 |
500.2 |
640.5 |
(2.7) |
(24.0) |
|
|
|
|
|
|
|
|
|
|
of
which discretionary |
|
|
|
|
297.2 |
313.8 |
393.6 |
(5.3) |
(24.5) |
|
|
|
|
|
|
|
|
|
|
Client
assets |
|
|
|
|
986.7 |
1'000.3 |
1'214.2 |
(1.4) |
(18.7) |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse First Boston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management |
|
|
|
|
517.8 |
535.4 |
682.2 |
(3.3) |
(24.1) |
|
|
|
|
|
|
|
|
|
|
of
which discretionary |
|
|
|
|
325.5 |
346.3 |
428.2 |
(6.0) |
(24.0) |
|
|
|
|
|
|
|
|
|
|
Client
assets |
|
|
|
|
1'070.6 |
1'087.1 |
1'335.9 |
(1.5) |
(19.9) |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management |
|
|
|
|
1'195.3 |
1'221.8 |
1'430.6 |
(2.2) |
(16.4) |
|
|
|
|
|
|
|
|
|
|
of
which discretionary |
|
|
|
|
590.2 |
615.5 |
707.1 |
(4.1) |
(16.5) |
|
|
|
|
|
|
|
|
|
|
Client
assets |
|
|
|
|
1'793.2 |
1'821.0 |
2'138.2 |
(1.5) |
(16.1) |
|
|
|
|
|
|
|
|
|
|
Net
new assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF bn |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Private
Banking |
|
0.5 |
3.4 |
8.6 |
(85.3) |
(94.2) |
18.7 |
35.7 |
(47.6) |
|
|
|
|
|
|
|
|
|
|
Corporate
& Retail Banking |
|
0.2 |
(2.3) |
0.9 |
|
(77.8) |
(3.2) |
1.3 |
|
|
|
|
|
|
|
|
|
|
|
Life
& Pensions |
|
(1.3) |
0.4 |
1.8 |
|
|
3.4 |
5.0 |
(32.0) |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
(0.6) |
1.5 |
11.3 |
|
|
18.9 |
42.0 |
(55.0) |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse First Boston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional
Securities |
|
|
(3.0) |
0.5 |
|
|
1.9 |
0.5 |
280.0 |
|
|
|
|
|
|
|
|
|
|
CSFB
Financial Services
1) |
|
(6.0) |
(12.2) |
6.7 |
(50.8) |
|
(23.4) |
25.0 |
|
|
|
|
|
|
|
|
|
|
|
Credit
Suisse First Boston |
|
(6.0) |
(15.2) |
7.2 |
(60.5) |
|
(21.5) |
25.5 |
|
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Group |
|
(6.6) |
(13.7) |
18.5 |
(51.8) |
|
(2.6) |
67.5 |
|
|
|
|
|
|
|
|
|
|
|
Certain
reclassifications have been made to conform to the current presentation. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Net new discretionary assets for institutional asset management. |
|
|
|
|
|
|
|
|
|
|
Group
Executive Board, effective January 1, 2003
Oswald J. Grübel
Co-CEO Credit Suisse Group; Chief Executive Officer Credit Suisse Financial
Services
John J. Mack
Co-CEO Credit Suisse Group; Chief Executive Officer Credit Suisse First Boston
Hans-Ulrich
Doerig Vice-Chairman of the Group Executive Board; Head of Corporate Center,
Credit Suisse Group
Brady W.
Dougan Co-President, Institutional Securities, Credit Suisse First Boston
Brian D.
Finn Co-President, Institutional Securities, Credit Suisse First Boston
David P.
Frick General Counsel, Credit Suisse Group
Ulrich Körner
Chief Financial Officer, Credit Suisse Financial Services
Jeffrey M.
Peek Head of CSFB Financial Services, Credit Suisse First Boston
Philip K.
Ryan Chief Financial Officer, Credit Suisse Group
Richard E. ThornburghChief
Risk Officer, Credit Suisse Group
Stephen R. Volk
Chairman, Credit Suisse First Boston
Alex W. Widmer
Head of Private Banking, Credit Suisse Financial Services
RISK
MANAGEMENT
Credit
Suisse Groups overall position risks fell by 9% in the fourth quarter 2002
versus the previous quarter, predominantly due to further equity position reductions,
lower foreign exchange risks and a substantial reduction of exposures in Brazil.
Credit Suisse First Bostons average trading risks were lower as a consequence
of reduced credit spread positions. The Groups credit risk exposures declined
by 6% quarter-on-quarter.
Overall
risk trends
Economic
Risk Capital (ERC) is an emerging best practice tool for measuring and reporting
all quantifiable risks across a financial organization on a consistent and comprehensive
basis. It is referred to as economic because it treats positions solely on
an economic basis, irrespective of differences in accounting or regulatory treatment.
Credit Suisse Group has invested significant resources in developing this tool
over the last few years to achieve several objectives: to better assess the
composition and trend of our risk portfolio; to provide a benchmark for risk/return
analysis by business; to improve risk control and limits; to support a target
credit rating; and to allocate capital. ERC is defined as the economic capital
needed to remain solvent even under extreme market, business and operational
conditions, based on conservative assumptions.
Credit Suisse
Group distinguishes between three fundamental sources of risk. Position risk
ERC measures the potential unexpected loss in economic value associated with
the Groups portfolio of positions over a one-year horizon that is exceeded
with a given, small probability (1% for daily risk management purposes; 0.03%
for capital management purposes). Business risk ERC captures the risk related
to the Groups commission and fee-based activities by estimating the potential
worst-case negative margin that these activities might experience during a severe
market downturn. Operational risk ERC represents the estimated worst-case loss
resulting from inadequate or failed internal processes and systems, human error
or external events.
Position
risk ERC constitutes the most important risk category and comprises more than
80% of the overall risk profile. Total 99%, 1-year position risk ERC was down
9% in the fourth quarter 2002 compared with the previous quarter, due primarily
to further equity position reductions and reductions in the foreign exchange
and emerging markets areas. As highlighted in the table below, Credit Suisse
Group has substantially reduced its position risk profile over the course of
2002, predominantly through a significant reduction in its equity market-related
risks. Other notable developments include a substantial reduction in emerging
market risks, due mainly to lower positions in Brazil, and a material reduction
in foreign exchange rate risks, primarily due to a reduction of the foreign
exchange risks embedded in the investment portfolios of the Winterthur units.
At the end of the fourth quarter of 2002, 53% of the Groups position risk ERC
was with Credit Suisse First Boston, 42% with Credit Suisse Financial Services
(of which 66% was with the insurance units and 34% was with the banking units)
and 5% with the Corporate Center.
Key
Position Risk Trends |
|
|
|
|
|
|
|
|
|
|
|
|
|
In
CHF m |
Change
in % from
|
Change
Analysis: Brief Summary |
|
|
|
|
|
|
|
|
4Q2002 |
3Q2002 |
4Q2001 |
4Q2002
vs 3Q2002 |
|
|
|
|
|
|
Interest
Rate, Credit Spread & Foreign Exchange ERC |
|
3'666 |
(15%) |
(21%) |
Driven
by a reduction in foreign exchange risk at the Winterthur units |
|
|
|
|
|
|
Equity
Investment ERC |
|
3'674 |
(9%) |
(65%) |
Driven
by the sale of strategic investments |
|
|
|
|
|
|
Swiss
& Retail Lending ERC |
|
2'097 |
0% |
(9%) |
No
material change |
|
|
|
|
|
|
International
Lending ERC |
|
3'840 |
(2%) |
(4%) |
No
material change |
|
|
|
|
|
|
Emerging
Markets ERC |
|
1'977 |
(15%) |
(26%) |
Predominantly
from position reductions in Brazil |
|
|
|
|
|
|
Real
Estate ERC & Structured Asset ERC
1) |
|
3'953 |
(8%) |
(10%) |
Continued
reduction in legacy commercial real estate exposures in the US |
|
|
|
|
|
|
Insurance
Underwriting ERC |
|
819 |
(2%) |
9% |
Sale
of Winterthur Portugal |
|
|
|
|
|
|
Simple
Sum across Risk Categories |
|
20'025 |
(8%) |
(32%) |
Lower
Equity and Emerging Markets ERC |
|
|
|
|
|
|
Diversification
Benefit |
|
(6'723) |
(7%) |
(41%) |
In
line with overall risk reduction |
|
|
|
|
|
|
Total
Position Risk ERC |
|
13'303 |
(9%) |
(26%) |
Lower
Equity and Emerging Markets ERC |
|
|
|
|
|
|
For a
more detailed description of the Groups ERC model, please refer to our
Annual Report 2001, which is available on our website
www.credit-suisse.com. Note that comparatives have been restated for
methodology changes in order to maintain consistency over time. |
|
|
|
|
|
|
|
|
|
|
|
1)
This category comprises the Real Estate investments of Winterthur,
CSFBs Commerical Real Estate exposures, CSFBs Residential Real
Estate exposures, CSFBs Asset-Backed-Securities exposures as well as
the Real Estate Acquired at Auction and Real Estate For Own Use in
Switzerland. |
|
|
|
|
|
|
Trading
risks
The average
1-day, 99% VaR at Credit Suisse First Boston in the fourth quarter of 2002 was
USD 39.4 million compared to USD 43.7 million during the third quarter of 2002.
The VaR reduction during the fourth quarter was attributable to a reduction in
overall credit spread positions. As shown in the backtesting chart, Credit
Suisse First Boston had no backtesting exceptions in the fourth quarter of 2002.
Over the last 12 months, Credit Suisse First Boston had one backtesting
exception (on average, an accurate 1-day, 99% VaR model would have 2.5
exceptions per annum).
Credit
risk exposure
Credit risk
exposure declined across nearly all product areas at both business units during
the fourth quarter 2002, with a total reduction for the Group of 6%
quarter-on-quarter. Credit risk exposures at Credit Suisse Financial Services
were slightly lower across all product areas. The decrease at Credit Suisse
First Boston was due partially to a weakening of the US dollar as well as a
reduction in lending products.
There was an
overall increase in impaired loans for the Group versus the end of the third
quarter due to a reclassification of the BZ Group exposure from a repurchase
agreement to a loan. Excluding this reclassification, impaired loans across the
Group declined during the fourth quarter 2002. The increase in non-performing
loans at Credit Suisse First Boston was partially offset by a decrease in
non-performing loans at Credit Suisse Financial Services. While coverage of
non-performing loans deteriorated, coverage of impaired loans improved during
the fourth quarter 2002. The quality of the Groups credit risk exposure
remained stable during the fourth quarter 2002 versus the previous quarter and
year-end 2001.
CSFB
trading exposures (99% 1-day VaR) |
|
|
|
|
|
|
|
|
|
|
|
in
USD m |
|
4Q2002 |
3Q2002 |
2Q2002 |
1Q2002 |
|
|
|
|
|
|
Total
VaR |
|
|
|
|
|
|
|
|
|
|
|
Period
end |
|
41.3 |
38.9 |
59.3 |
52.5 |
|
|
|
|
|
|
Average |
|
39.4 |
43.7 |
46.4 |
49.2 |
|
|
|
|
|
|
Maximum |
|
46.5 |
57.4 |
59.3 |
61.2 |
|
|
|
|
|
|
Minimum |
|
31.9 |
37.6 |
36.8 |
40.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
USD m |
|
31.12.02 |
30.09.02 |
30.06.02 |
31.03.02 |
|
|
|
|
|
|
VaR
by risk type |
|
|
|
|
|
|
|
|
|
|
|
Interest
rate |
|
48.3 |
59.3 |
54.7 |
59.7 |
|
|
|
|
|
|
Foreign
exchange |
|
10.8 |
7.6 |
18.7 |
7.5 |
|
|
|
|
|
|
Equity |
|
10.1 |
12.1 |
16.5 |
17.2 |
|
|
|
|
|
|
Commodity |
|
1.0 |
1.2 |
0.5 |
0.6 |
|
|
|
|
|
|
Subtotal |
|
70.2 |
80.2 |
90.4 |
85.0 |
|
|
|
|
|
|
Diversification
benefit |
|
(28.9) |
(41.3) |
(31.1) |
(32.5) |
|
|
|
|
|
|
Total |
|
41.3 |
38.9 |
59.3 |
52.5 |
|
|
|
|
|
|
Credit
Suisse First Boston computes these VaR estimates separately for each risk
type and for the whole portfolio using the historical simulation
methodology. Diversification benefit reflects the net difference between
the sum of the 99% percentile loss for each risk type and for the total
portfolio. |
|
|
|
|
|
|
|
|
|
|
|
Total
credit risk exposure
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
Credit
Suisse First Boston |
|
Credit
Suisse Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
31.12.02 |
30.09.02 |
31.12.01 |
|
31.12.02 |
30.09.02 |
31.12.01 |
|
31.12.02 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Due
from banks
2) |
|
32'752 |
34'085 |
35'560 |
|
44'016 |
49'626 |
40'931 |
|
39'469 |
44'927 |
40'084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Due
from customers and mortgages
2) |
|
132'353 |
134'324 |
134'796 |
|
82'395 |
88'676 |
87'438 |
|
213'206 |
221'907 |
221'108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
due from banks and customers, gross
2) |
|
165'105 |
168'409 |
170'356 |
|
126'411 |
138'302 |
128'369 |
|
252'675 |
266'834 |
261'192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent
liabilities |
|
12'349 |
12'429 |
13'849 |
|
27'862 |
29'826 |
32'286 |
|
39'104 |
40'998 |
43'586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Irrevocable
commitments |
|
1'763 |
1'843 |
945 |
|
84'287 |
96'938 |
128'918 |
|
86'051 |
98'781 |
129'864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
banking products |
|
179'217 |
182'681 |
185'150 |
|
238'560 |
265'066 |
289'573 |
|
377'830 |
406'613 |
434'642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
instruments
3) |
|
2'375 |
1'906 |
1'635 |
|
54'243 |
60'967 |
51'160 |
|
54'757 |
61'356 |
51'029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
lending banks |
|
0 |
291 |
0 |
|
0 |
0 |
71 |
|
0 |
291 |
71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
lending customers |
|
0 |
0 |
0 |
|
64 |
15 |
5 |
|
64 |
15 |
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reverse
repurchase agreements banks |
|
2'270 |
2'631 |
968 |
|
158'544 |
157'989 |
165'930 |
|
156'397 |
155'916 |
163'666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reverse
repurchase agreements customers |
|
13'944 |
14'976 |
7'122 |
|
57'571 |
62'339 |
59'801 |
|
71'384 |
77'315 |
66'921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
traded products |
|
18'589 |
19'804 |
9'725 |
|
270'422 |
281'310 |
276'967 |
|
282'602 |
294'893 |
281'692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
credit risk exposure, gross |
|
197'806 |
202'485 |
194'875 |
|
508'982 |
546'376 |
566'540 |
|
660'432 |
701'506 |
716'334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan
valuation allowances and provisions |
|
(4'092) |
(4'014) |
(5'717) |
|
(3'817) |
(3'538) |
(3'638) |
|
(7'911) |
(7'554) |
(9'357) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
credit risk exposure, net |
|
193'714 |
198'471 |
189'158 |
|
505'165 |
542'838 |
562'902 |
|
652'521 |
693'952 |
706'977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Credit Suisse Financial Services/Credit Suisse First Boston reflect
business unit amounts. Total consolidated Credit Suisse Group amounts
include adjustments and Corporate Center. |
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
Excluding securities lending and reverse repurchase transactions. |
|
|
|
|
|
|
|
|
|
|
|
|
|
3)
Positive replacement values considering netting agreements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
loan portfolio exposure and allowances and provisions for credit risk
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
Credit
Suisse First Boston |
|
Credit
Suisse Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
31.12.02 |
30.09.02 |
31.12.01 |
|
31.12.02 |
30.09.02 |
31.12.01 |
|
31.12.02 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
loans |
|
3'004 |
3'412 |
4'893 |
|
3'351 |
2'104 |
3'067 |
|
6'355 |
5'516 |
7'960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
earning loans |
|
2'108 |
2'087 |
2'331 |
|
217 |
274 |
476 |
|
2'325 |
2'361 |
2'808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing loans |
|
5'112 |
5'499 |
7'224 |
|
3'568 |
2'378 |
3'543 |
|
8'680 |
7'877 |
10'768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured
loans |
|
52 |
75 |
114 |
|
229 |
236 |
0 |
|
281 |
311 |
114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Potential
problem loans |
|
1'723 |
1'702 |
2'199 |
|
1'685 |
2'405 |
2'484 |
|
3'408 |
4'107 |
4'683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
other impaired loans |
|
1'775 |
1'777 |
2'313 |
|
1'914 |
2'641 |
2'484 |
|
3'689 |
4'418 |
4'797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
impaired loans |
|
6'887 |
7'276 |
9'537 |
|
5'482 |
5'019 |
6'027 |
|
12'369 |
12'295 |
15'565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Due
from banks and customers, gross |
|
165'105 |
168'409 |
170'356 |
|
126'411 |
138'302 |
128'369 |
|
252'675 |
266'834 |
261'192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
allowances |
|
4'053 |
3'999 |
5'709 |
|
3'647 |
3'376 |
3'553 |
|
7'703 |
7'377 |
9'264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
of
which on principal |
|
3'201 |
3'092 |
4'324 |
|
3'416 |
3'132 |
3'227 |
|
6'617 |
6'224 |
7'553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
of
which on interest |
|
852 |
907 |
1'385 |
|
231 |
244 |
326 |
|
1'086 |
1'153 |
1'711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Due
from banks and customers, net |
|
161'052 |
164'410 |
164'647 |
|
122'764 |
134'926 |
124'816 |
|
244'972 |
259'457 |
251'928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provisions
for contingent liabilities and irrevocable commitments |
|
39 |
15 |
8 |
|
170 |
162 |
85 |
|
208 |
177 |
93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
valuation allowances and provisions |
|
4'092 |
4'014 |
5'717 |
|
3'817 |
3'538 |
3'638 |
|
7'911 |
7'554 |
9'357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
allowances as % of total non-performing loans |
|
79.3% |
72.7% |
79.0% |
|
102.2% |
142.0% |
100.3% |
|
88.7% |
93.7% |
86.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
allowances as % of total impaired loans |
|
58.9% |
55.0% |
59.9% |
|
66.5% |
67.3% |
59.0% |
|
62.3% |
60.0% |
59.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Credit Suisse Financial Services/Credit Suisse First Boston reflect
business unit amounts. Total consolidated Credit Suisse Group amounts
include adjustments and Corporate Center. |
|
|
|
|
|
|
|
|
|
|
|
|
|
REVIEW
OF BUSINESS UNITS | CREDIT SUISSE FINANCIAL SERVICES
Credit
Suisse Financial Services recorded a net profit of CHF 705 million and a net
operating profit, excluding the amortization of acquired intangible assets,
goodwill, exceptional items and the cumulative effect of a change in accounting
principles, of CHF 535 million in the fourth quarter of 2002. Winterthur
returned to profitability due to a satisfactory operating performance and the
positive impact of a change in accounting principles. Private Banking recorded a
slightly higher profit than in the third quarter, despite project costs and low
transaction-based income. For the full year 2002, Credit Suisse Financial
Services recorded a net loss of CHF 165 million and a net operating loss of CHF
136 million.
Credit
Suisse Financial Services recorded a net profit of CHF 705 million in the fourth
quarter of 2002 and a net loss of CHF 165 million for the full year, versus a
net profit of CHF 3.6 billion for 2001. The insurance segments reported
investment income of CHF 1.4 billion in 2002, compared to CHF 7.0 billion in
2001. The lower investment income had a CHF 3.3 billion impact on net operating
profit (CHF 1.6 billion for Life & Pensions and CHF 1.7 billion for
Insurance) compared with 2001. In the fourth quarter of 2002, Credit Suisse
Financial Services net profit benefited from the recognition of deferred tax
assets on net operating losses as a result of a change in accounting principles
in the amount of CHF 472 million for the financial year 2002, as well as the
cumulative effect of CHF 266 million from prior years, primarily at Winterthur.
Exceptional items of CHF 73 million were recognized in the fourth quarter of
2002 as a result of focusing the European initiative on private banking clients.
For the full year 2002, exceptional items totaled CHF 192 million.
Assets under
management declined 1.3% to CHF 677.5 billion in the fourth quarter 2002 and
were down 9.5% versus year-end 2001 due primarily to weak equity markets and the
foreign exchange impact. The business unit recorded a CHF 0.6 billion net
outflow of assets in the fourth quarter of 2002. A net asset inflow in the
banking units was more than offset by an outflow at Life & Pensions,
reflecting selective underwriting and renewals. For the full year 2002, Credit
Suisse Financial Services reported net new assets of CHF 18.9 billion,
corresponding to 2.5% of assets under management.
Private
Banking
In the
fourth quarter of 2002, Private Banking reported a segment profit of CHF 339
million, up 12% versus the previous quarter, and of CHF 1.8 billion in 2002,
down 23% versus 2001. The net margin stood at 33.7 bp in 2002, compared with
42.3 bp in 2001. Operating income rose 3% versus the third quarter to CHF 1.5
billion, but was still below the average of the previous quarters due to
investor passivity and a reduced asset base. In 2002, operating income stood at
CHF 6.5 billion, down 11% on 2001. Operating expenses increased 2% against the
previous quarter, due mainly to project costs. In 2002, operating expenses
decreased CHF 162 million or 4% versus the previous year.
Net new
assets amounted to CHF 0.5 billion in the fourth quarter of 2002, impacted by
increased attention surrounding Credit Suisse Groups financial performance in
the course of 2002. In 2002, net new assets of CHF 18.7 billion were recorded,
corresponding to 3.4% of assets under management, versus CHF 35.7 billion in
2001. At year-end 2002, assets under management stood at CHF 488.0 billion, down
10.8% versus year-end 2001 and down 1.3% versus September 30, 2002, due mainly
to market performance and the foreign exchange impact.
Private
Banking further realigned its European initiative during the fourth quarter of
2002 to focus on high-net-worth individuals and reduce the significant cost of
pursuing a broader strategy. In Switzerland, the realignment of the private
client business was implemented as of January 1, 2003. This entailed moving
certain client segments in Switzerland from Private Banking to Corporate &
Retail Banking to better focus the Swiss platform and delivery of services. In
Asia, the Middle East and Latin America, Private Banking continued to achieve
above-average growth. Furthermore, Clariden Bank acquired PBS Privat Bank
Schweiz in November 2002.
In the
fourth quarter 2002, Private Banking again launched a number of innovative
products, including its Total Performance Strategy (TOPS), which are short-term
bond funds with a reduced interest rate risk, and the PODIUM note, a bear market
product based on a basket of selected stocks, offering bond-like capital
protection.
The lower
asset base of Private Banking at year-end 2002 will negatively affect operating
income in 2003. The management of costs will therefore remain a high priority
for Private Banking.
Corporate
& Retail Banking
Corporate
& Retail Banking posted a segment profit of CHF 46 million in the fourth
quarter 2002, down 55% on the previous quarter, and of CHF 363 million in 2002,
up 19% versus the previous year. Operating income declined 7% quarter-on-quarter
due, in particular, to a decrease in transaction-related commission income.
Compared with the previous year, operating income increased by 2%.
In 2002, the
net interest margin stood at 235 bp, up from 226 bp in 2001. The net asset
outflow of CHF 3.2 billion in 2002 was mainly attributable to volatility in the
account balances of corporate clients. Assets under management stood at CHF 48.0
billion at year-end 2002. Fourth quarter operating expenses rose 8% versus the
previous quarter to CHF 421 million. This increase was mainly attributable to
project costs. However, cost reduction measures resulted in lower operating
expenses for the full year, down 2% to CHF 1.6 billion. The cost/income ratio
stood at 68.7% in 2002, compared with 71.1% in 2001. The return on average
allocated capital increased 1.5 percentage points compared to 2001, to stand at
9.3%.
The overall
risk profile of the credit portfolio improved in 2002 as a result of a cautious
lending policy and active credit portfolio management. However, the provisions
recorded were CHF 127 million above the statistical valuation adjustments due,
in particular, to exceptional additional provisions on account of the
anticipated liquidation of certain positions.
The
realignment of the Swiss private client business was implemented as of January
1, 2003. This entailed moving certain client segments in Switzerland from
Private Banking to Corporate & Retail Banking to better focus the Swiss
platform and delivery of services. Direct Trade Finance, a platform offering
efficient, centralized access to all trade finance transactions online, was
launched in the fourth quarter of 2002. In the future, Credit Suisse will
concentrate its online banking products and services on its core offering,
Direct Net. The online brokerage service youtrade was therefore discontinued as
of the end of January 2003.
Due to the
prevailing weak economic environment, Corporate & Retail Banking remains
cautious about its outlook for 2003. The segment does not anticipate volume
growth in the corporate banking business, and higher credit losses may occur. As
a consequence, Corporate & Retail Banking will continue to strictly control
expenses.
Life
& Pensions
Life &
Pensions reported a segment loss of CHF 1.4 billion for the full year 2002 and a
segment profit of CHF 93 million for the fourth quarter. The full year loss
reflects a CHF 3.3 billion decline in investment income, with an impact on the
segment result of CHF 1.6 billion compared to 2001. The fourth quarter
investment income amounted to CHF 333 million, up 8% versus the previous
quarter, and improved in particular in countries where the investment risk is
mainly borne by Life & Pensions. Equity exposure was reduced from 19% as of
December 31, 2001, to 8% as of December 31, 2002. A large proportion of the
existing exposure reflects a direct participation by the policyholders,
decreasing the impact on results and earnings volatility. The fourth quarter
result benefited from the first-time recognition of deferred tax assets on net
operating losses in the amount of CHF 220 million for 2002.
Life &
Pensions reported gross premiums written of CHF 19.0 billion for 2002,
reflecting 9% growth (10% adjusted for acquisitions, divestitures and exchange
rate impacts) versus 2001. The units in Switzerland, the UK and Italy were the
main contributors to this significant growth. New business accounted for 39% of
the gross premiums written in 2002. Net new assets amounted to CHF 3.4 billion
for the year, versus CHF 5.0 billion in 2001. The net asset outflow of CHF 1.3
billion in the fourth quarter 2002 reflects the move towards selective
underwriting and renewals.
Operating
expenses, comprising acquisition and non-deferrable costs, amounted to CHF 2.2
billion in 2002, up CHF 311 million versus 2001, reflecting the strong premium
growth and additional DAC (deferred acquisition costs) and PVFP (present value
of future profits) writedowns of CHF 292 million due to a change in the
long-term assumptions regarding investment income. Excluding these writedowns,
the expense ratio for 2002 was 9.9%, down from 10.9% in 2001. Including these
writedowns, the expense ratio for 2002 stood at 11.5%.
In 2002,
Life & Pensions finalized the divestiture of its French and Austrian
operations, announced the sale of its operations in Portugal, and acquired the
business of Premier Life Ltd.
The Swiss
governments reduction of the guaranteed rate of return for the employee
benefit business from 4% to 3.25%, effective January 1, 2003, will only
partially alleviate the impact of the adverse business environment for group
life insurers.
Life &
Pensions remains exposed to the volatility of the financial markets due to the
nature of its business. However, through the implementation of cost reduction
measures as well as efforts to increase its share of capital-light products and
to focus on its core markets, it aims to mitigate the impact of market
volatility.
Insurance
Insurance
reported a segment loss of CHF 992 million in 2002 and a segment profit of CHF 6
million for the fourth quarter. The full year loss reflects a CHF 2.2 billion
decline in investment income, with an impact on the segment result of CHF 1.7
billion compared to 2001. Investment income amounted to CHF 59 million in the
fourth quarter. Insurance reduced its proportion of equity investments from 17%
as of December 31, 2001, to 7% as of December 31, 2002. The fourth quarter
result benefited from the first-time recognition of deferred tax assets on net
operating losses in the amount of CHF 276 million but was adversely affected by
charges for discontinued and divested businesses with an impact on the segment
result of CHF 90 million.
In 2002,
Insurance increased its net premiums earned by 5% (9% adjusted for acquisitions,
divestitures and exchange rate impacts), due in part to strong rate increases.
Insurance
reported a significant improvement of CHF 720 million in its underwriting
results in 2002. This improvement was due primarily to a decrease in the
combined ratio of 2.2 percentage points, from 105.6% in 2001 to 103.4% in 2002.
The claims ratio improved 1.9 percentage points to 74.8% in 2002, due to clear
progress in North America, the UK, and Italy as well as Insurances withdrawal
from lines and businesses where performance was unsatisfactory. The motor
insurance business produced particularly good results, with an improvement in
the claims ratio of more than 6 percentage points. The claims ratio in
Switzerland and Germany deteriorated in 2002 primarily in the fourth quarter due to storms and flooding. In 2002, the segments expense ratio improved
by 0.3 percentage points versus the previous year to 28.6%, following cost
saving measures. Despite this progress, further measures are planned to reduce
administration costs.
In 2002,
Insurance finalized the divestitures of its French and Austrian operations and
announced the sale of its Portuguese operations. With a favorable pricing
environment in insurance markets, continuing initiatives to reduce costs and the
withdrawal from businesses with unsatisfactory results, Insurance believes it is
positioned to return to profitability in 2003 based on current investment
income.
Credit
Suisse Financial Services business unit income statement
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Operating
income
2) |
|
3'517 |
2'289 |
3'582 |
54 |
(2) |
11'830 |
15'382 |
(23) |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
1'405 |
1'443 |
1'244 |
(3) |
13 |
5'765 |
5'639 |
2 |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
897 |
845 |
1'065 |
6 |
(16) |
3'465 |
3'686 |
(6) |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
2'302 |
2'288 |
2'309 |
1 |
0 |
9'230 |
9'325 |
(1) |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
1'215 |
1 |
1'273 |
|
(5) |
2'600 |
6'057 |
(57) |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
256 |
141 |
218 |
82 |
17 |
733 |
581 |
26 |
|
|
|
|
|
|
|
|
|
|
Amortization
of Present Value of Future Profits (PVFP) |
|
62 |
119 |
78 |
(48) |
(21) |
267 |
237 |
13 |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
105 |
91 |
48 |
15 |
119 |
390 |
383 |
2 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before extraordinary and exceptional items,
cumulative effect of change in accounting principle and taxes |
|
792 |
(350) |
929 |
|
(15) |
1'210 |
4'856 |
(75) |
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
24 |
6 |
8 |
300 |
200 |
48 |
25 |
92 |
|
|
|
|
|
|
|
|
|
|
Taxes
3)
4) |
|
(332) |
(693) |
(151) |
(52) |
120 |
(1'525) |
(1'113) |
37 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before exceptional items, cumulative effect of
change in accounting principle and minority interests |
|
484 |
(1'037) |
786 |
|
(38) |
(267) |
3'768 |
|
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
(37) |
(27) |
(52) |
37 |
(29) |
(139) |
(116) |
20 |
|
|
|
|
|
|
|
|
|
|
Exceptional
items |
|
(73) |
(119) |
0 |
(39) |
|
(192) |
0 |
|
|
|
|
|
|
|
|
|
|
|
Tax
impact |
|
14 |
1 |
1 |
|
|
16 |
2 |
|
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle
3) |
|
266 |
|
|
|
|
266 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
654 |
(1'182) |
735 |
|
(11) |
(316) |
3'654 |
|
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
51 |
17 |
22 |
200 |
132 |
151 |
(69) |
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
705 |
(1'165) |
757 |
|
(7) |
(165) |
3'585 |
|
|
|
|
|
|
|
|
|
|
|
1)
Certain reclassifications have been made to conform to the current
presentation. The business unit results reflect the results of the
separate segments comprising the business unit. Certain
acquisition-related costs, including amortization of acquired intangible
assets and goodwill, exceptional items and cumulative effect of change in
accounting principle not allocated to the segments are included in the
business unit results. The exceptional items relate to focusing the
European initiative on private banking clients. For a complete
reconciliation of the business unit results to the Groups consolidated
results and a discussion of the material reconciling items, please refer
to pages 33-36. |
|
|
|
|
|
|
|
|
|
|
2)
For the purpose of the consolidated financial statements, operating income
for the insurance business is defined as net premiums earned, less claims
incurred and change in technical provisions and expenses for processing
claims, less commissions, plus net investment income from the insurance
business. |
|
|
|
|
|
|
|
|
|
|
3)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses. If the change in accounting principle had not been adopted in
4Q2002, taxes would have been CHF -804 m for 4Q2002. The retroactive
application of this change in accounting principle would have resulted in
taxes for 4Q2002, 3Q2002 and 4Q2001 of CHF -649 m, CHF -594 m and CHF -210
m, respectively, and CHF-1,153 m for the 12 months 2001. |
|
|
|
|
|
|
|
|
|
|
4)
Excluding tax impact on amortization of acquired intangible assets and
goodwill as well as exceptional items. |
|
|
|
|
|
|
|
|
|
|
Reconciliation
to net operating profit/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
705 |
(1'165) |
757 |
|
(7) |
(165) |
3'585 |
|
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill
1) |
|
37 |
27 |
52 |
37 |
(29) |
119 |
116 |
3 |
|
|
|
|
|
|
|
|
|
|
Exceptional
items |
|
73 |
119 |
0 |
(39) |
|
192 |
0 |
|
|
|
|
|
|
|
|
|
|
|
Tax
impact |
|
(14) |
(1) |
(1) |
|
|
(16) |
(2) |
|
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle |
|
(266) |
|
|
|
|
(266) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) |
|
535 |
(1'020) |
808 |
|
(34) |
(136) |
3'699 |
|
|
|
|
|
|
|
|
|
|
|
1)
Excluding a CHF 20 m write-off in 2Q2002 relating to a participation. |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services business unit key information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2002 |
3Q2002 |
4Q2001 |
2002 |
2001 |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio
1) |
|
|
|
|
75.0% |
116.3% |
72.7% |
87.6% |
65.9% |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio (operating)
2)
3) |
|
|
|
|
72.7% |
106.1% |
70.5% |
84.2% |
64.4% |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio (operating), banking
2) |
|
|
|
|
71.1% |
69.4% |
65.7% |
65.1% |
61.6% |
|
|
|
|
|
|
|
|
|
|
Return
on average allocated capital
1) |
|
|
|
|
20.8% |
(38.9%) |
24.2% |
(2.6%) |
26.3% |
|
|
|
|
|
|
|
|
|
|
Return
on average allocated capital (operating)
2)
4) |
|
|
|
|
15.4% |
(34.1%) |
25.8% |
(2.3%) |
27.1% |
|
|
|
|
|
|
|
|
|
|
Average
allocated capital in CHF m |
|
|
|
|
12'600 |
12'161 |
12'170 |
12'334 |
13'883 |
|
|
|
|
|
|
|
|
|
|
Growth
in assets under management |
|
|
|
|
(1.3%) |
(3.8%) |
5.8% |
(9.5%) |
2.5% |
|
|
|
|
|
|
|
|
|
|
of
which net new assets |
|
|
|
|
(0.1%) |
0.2% |
1.6% |
2.5% |
5.8% |
|
|
|
|
|
|
|
|
|
|
of
which market movement and structural effects |
|
|
|
|
(1.3%) |
(4.1%) |
3.8% |
(11.8%) |
(4.2%) |
|
|
|
|
|
|
|
|
|
|
of
which acquisitions/(divestitures) |
|
|
|
|
0.1% |
0.1% |
0.4% |
(0.2%) |
0.9% |
|
|
|
|
|
|
|
|
|
|
of
which discretionary |
|
|
|
|
(0.7%) |
(0.6%) |
2.6% |
(1.9%) |
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
Assets
under management in CHF bn |
|
|
|
|
|
|
677.5 |
686.4 |
748.4 |
|
|
|
|
|
|
|
|
|
|
Number
of employees |
|
|
|
|
|
|
53'755 |
54'218 |
51'668 |
|
|
|
|
|
|
|
|
|
|
1)
Based on the business unit results including certain acquisition-related
costs, exceptional items and cumulative effect of change in accounting
principle not allocated to the segments. Please refer to pages 33-36. |
|
|
|
|
|
|
|
|
|
|
2)
Based on the results of the separate segments comprising the business
unit, which exclude certain acquisition-related costs, exceptional items
and cumulative effect of change in accounting principle not allocated to
the segments. Please refer to pages 33-36. |
|
|
|
|
|
|
|
|
|
|
3)
Excluding amortization of PVFP from the insurance business within Credit
Suisse Financial Services. |
|
|
|
|
|
|
|
|
|
|
4)
Excluding cumulative effect of change in accounting principle. |
|
|
|
|
|
|
|
|
|
|
Overview
of business unit Credit Suisse Financial Services
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit |
|
|
|
|
|
|
|
|
|
|
Corp.
& |
|
|
Suisse |
|
|
|
|
|
|
|
|
|
Private |
Retail |
Life
& |
|
Financial |
|
|
|
|
|
|
|
4Q2002,
in CHF m |
|
Banking |
Banking |
Pensions |
Insurance |
Services |
|
|
|
|
|
|
|
Operating
income
2) |
|
1'477 |
575 |
909 |
556 |
3'517 |
|
|
|
|
|
|
|
Personnel
expenses |
|
565 |
234 |
247 |
359 |
1'405 |
|
|
|
|
|
|
|
Other
operating expenses |
|
386 |
187 |
138 |
186 |
897 |
|
|
|
|
|
|
|
Operating
expenses |
|
951 |
421 |
385 |
545 |
2'302 |
|
|
|
|
|
|
|
Gross
operating profit |
|
526 |
154 |
524 |
11 |
1'215 |
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
62 |
25 |
90 |
79 |
256 |
|
|
|
|
|
|
|
Amortization
of Present Value of Future Profits (PVFP) |
|
|
|
60 |
2 |
62 |
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
33 |
72 |
|
|
105 |
|
|
|
|
|
|
|
Net
operating profit before extraordinary and exceptional items, cumulative
effect of change in accounting principle and taxes |
|
431 |
57 |
374 |
(70) |
792 |
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
23 |
1 |
0 |
0 |
24 |
|
|
|
|
|
|
|
Taxes
3) |
|
(115) |
(12) |
(281) |
76 |
(332) |
|
|
|
|
|
|
|
Net
operating profit before exceptional items, cumulative effect of change in
accounting principle and minority interests |
|
339 |
46 |
93 |
6 |
484 |
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
|
|
|
|
(37) |
|
|
|
|
|
|
|
Exceptional
items |
|
|
|
|
|
(73) |
|
|
|
|
|
|
|
Tax
impact |
|
|
|
|
|
14 |
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle |
|
|
|
|
|
266 |
|
|
|
|
|
|
|
Net
profit before minority interests |
|
|
|
|
|
654 |
|
|
|
|
|
|
|
Minority
interests |
|
|
|
|
|
51 |
|
|
|
|
|
|
|
Net
profit |
|
|
|
|
|
705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
allocated capital
4) |
|
3'317 |
3'802 |
5'481 |
12'600 |
|
|
|
|
|
|
|
1)
The business unit results reflect the results of the separate segments
comprising the business unit. Certain acquisition-related costs, including
amortization of acquired intangible assets and goodwill, exceptional items
and cumulative effect of change in accounting principle not allocated to
the segments are included in the business unit results. The exceptional
items relate to focusing the European initiative on private banking
clients. For a complete reconciliation of the business unit results to the
Groups consolidated results and a discussion of the material
reconciling items, please refer to pages 33-36. |
|
|
|
|
|
|
|
2)
Operating income for the insurance business is defined as net premiums
earned, less claims incurred and change in technical provisions and
expenses for processing claims, less commissions, plus net investment
income from the insurance business. |
|
|
|
|
|
|
|
3)
Excluding tax impact on amortization of acquired intangible assets and
goodwill as well as exceptional items. |
|
|
|
|
|
|
|
4)
Life & Pensions and Insurance segment amount represents the average
shareholders equity of «Winterthur» Swiss Insurance Company. |
|
|
|
|
|
|
|
Private
Banking income statement
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
414 |
400 |
500 |
4 |
(17) |
1'691 |
1'976 |
(14) |
|
|
|
|
|
|
|
|
|
|
Net
commission and service fee income |
|
930 |
955 |
1'060 |
(3) |
(12) |
4'214 |
4'519 |
(7) |
|
|
|
|
|
|
|
|
|
|
Net
trading income |
|
118 |
72 |
153 |
64 |
(23) |
495 |
640 |
(23) |
|
|
|
|
|
|
|
|
|
|
Other
ordinary income |
|
15 |
13 |
22 |
15 |
(32) |
61 |
110 |
(45) |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
1'477 |
1'440 |
1'735 |
3 |
(15) |
6'461 |
7'245 |
(11) |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
565 |
576 |
570 |
(2) |
(1) |
2'393 |
2'502 |
(4) |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
386 |
352 |
420 |
10 |
(8) |
1'469 |
1'522 |
(3) |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
951 |
928 |
990 |
2 |
(4) |
3'862 |
4'024 |
(4) |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
526 |
512 |
745 |
3 |
(29) |
2'599 |
3'221 |
(19) |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
62 |
82 |
99 |
(24) |
(37) |
253 |
215 |
18 |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses
2) |
|
33 |
21 |
(41) |
57 |
|
97 |
75 |
29 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit before extraordinary and exceptional items, cumulative
effect of change in accounting principle and taxes |
|
431 |
409 |
687 |
5 |
(37) |
2'249 |
2'931 |
(23) |
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
23 |
2 |
8 |
|
188 |
44 |
12 |
267 |
|
|
|
|
|
|
|
|
|
|
Taxes
3) |
|
(115) |
(108) |
(116) |
6 |
(1) |
(531) |
(642) |
(17) |
|
|
|
|
|
|
|
|
|
|
Net
operating profit before exceptional items, cumulative effect of change in
accounting principle and minority interests (segment result) |
|
339 |
303 |
579 |
12 |
(41) |
1'762 |
2'301 |
(23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increased/(decreased)
credit-related valuation adjustments |
2) |
(13) |
16 |
(6) |
|
|
(7) |
(25) |
|
|
|
|
|
|
|
|
|
|
|
1)
Certain reclassifications have been made to conform to the current
presentation. Certain acquisition-related costs, including amortization of
acquired intangible assets and goodwill, exceptional items and cumulative
effect of change in accounting principle not allocated to the segments are
included in the business unit results. |
|
|
|
|
|
|
|
|
|
|
2)
Increased/(decreased) valuation adjustments taken at Group level resulting
from the difference between the statistical and actual credit provisions. |
|
|
|
|
|
|
|
|
|
|
3)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses. If the change in accounting principle had not been adopted in
4Q2002, taxes would have been CHF -92 m for 4Q2002. |
|
|
|
|
|
|
|
|
|
|
Private
Banking balance sheet information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
% from |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
|
|
169'414 |
174'881 |
170'364 |
(3) |
(1) |
|
|
|
|
|
|
|
|
|
|
Due
from customers |
|
|
|
|
36'468 |
38'356 |
31'410 |
(5) |
16 |
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
|
|
44'832 |
44'126 |
42'008 |
2 |
7 |
|
|
|
|
|
|
|
|
|
|
Private
Banking key information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2002 |
3Q2002 |
4Q2001 |
2002 |
2001 |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio
1) |
|
|
|
|
68.6% |
70.1% |
62.8% |
63.7% |
58.5% |
|
|
|
|
|
|
|
|
|
|
Average
allocated capital in CHF m |
|
|
|
|
3'317 |
3'599 |
3'233 |
3'461 |
3'259 |
|
|
|
|
|
|
|
|
|
|
Pre-tax
margin
1) |
|
|
|
|
30.7% |
28.5% |
40.1% |
35.5% |
40.6% |
|
|
|
|
|
|
|
|
|
|
Fee
income/operating income |
|
|
|
|
63.0% |
66.3% |
61.1% |
65.2% |
62.4% |
|
|
|
|
|
|
|
|
|
|
Net
new assets in CHF bn |
|
|
|
|
0.5 |
3.4 |
8.6 |
18.7 |
35.7 |
|
|
|
|
|
|
|
|
|
|
Growth
in assets under management |
|
|
|
|
(1.3%) |
(4.4%) |
6.2% |
(10.8%) |
1.8% |
|
|
|
|
|
|
|
|
|
|
of
which net new assets |
|
|
|
|
0.1% |
0.7% |
1.7% |
3.4% |
6.6% |
|
|
|
|
|
|
|
|
|
|
of
which market movement and structural effects |
|
|
|
|
(1.5%) |
(5.1%) |
4.0% |
(14.2%) |
(6.1%) |
|
|
|
|
|
|
|
|
|
|
of
which acquisitions/(divestitures) |
|
|
|
|
0.1% |
|
0.5% |
0.1% |
1.3% |
|
|
|
|
|
|
|
|
|
|
Net
margin
2) |
|
|
|
|
27.2
bp |
24.0
bp |
43.6
bp |
33.7
bp |
42.3
bp |
|
|
|
|
|
|
|
|
|
|
Gross
margin
3) |
|
|
|
|
118.3
bp |
114.2
bp |
130.7
bp |
123.4
bp |
133.3
bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
Assets
under management in CHF bn |
|
|
|
|
|
|
488.0 |
494.5 |
546.8 |
|
|
|
|
|
|
|
|
|
|
Number
of employees |
|
|
|
|
|
|
14'923 |
15'249 |
14'818 |
|
|
|
|
|
|
|
|
|
|
1)
Based on the segment results, which exclude certain
acquisition-related costs, exceptional items and cumulative effect of
change in accounting principle not allocated to the segment. |
|
|
|
|
|
|
|
|
|
|
|
2)
Net operating profit before exceptional items, cumulative effect of
change in accounting principle and minority interests (segment
result)/average assets under management. |
|
|
|
|
|
|
|
|
|
|
|
3)
Operating income/average assets under management. |
|
|
|
|
|
|
|
|
|
|
|
Corporate
& Retail Banking income statement
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
418 |
423 |
413 |
(1) |
1 |
1'672 |
1'658 |
1 |
|
|
|
|
|
|
|
|
|
|
Net
commission and service fee income |
|
102 |
126 |
108 |
(19) |
(6) |
478 |
461 |
4 |
|
|
|
|
|
|
|
|
|
|
Net
trading income |
|
56 |
66 |
60 |
(15) |
(7) |
249 |
250 |
0 |
|
|
|
|
|
|
|
|
|
|
Other
ordinary income |
|
(1) |
0 |
2 |
|
|
36 |
29 |
24 |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
575 |
615 |
583 |
(7) |
(1) |
2'435 |
2'398 |
2 |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
234 |
237 |
235 |
(1) |
0 |
939 |
1'000 |
(6) |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
187 |
152 |
161 |
23 |
16 |
646 |
620 |
4 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
421 |
389 |
396 |
8 |
6 |
1'585 |
1'620 |
(2) |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
154 |
226 |
187 |
(32) |
(18) |
850 |
778 |
9 |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
25 |
27 |
39 |
(7) |
(36) |
89 |
84 |
6 |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses
2) |
|
72 |
70 |
89 |
3 |
(19) |
293 |
308 |
(5) |
|
|
|
|
|
|
|
|
|
|
Net
operating profit before extraordinary items, cumulative effect of change
in accounting principle and taxes |
|
57 |
129 |
59 |
(56) |
(3) |
468 |
386 |
21 |
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
1 |
4 |
0 |
(75) |
|
4 |
13 |
(69) |
|
|
|
|
|
|
|
|
|
|
Taxes
3) |
|
(12) |
(31) |
(14) |
(61) |
(14) |
(109) |
(94) |
16 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit before cumulative effect of change in accounting
principle and minority interests (segment result) |
|
46 |
102 |
45 |
(55) |
2 |
363 |
305 |
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increased/(decreased)
credit-related valuation adjustments |
2) |
98 |
15 |
16 |
|
|
127 |
47 |
|
|
|
|
|
|
|
|
|
|
|
1)
Certain reclassifications have been made to conform to the current
presentation. Certain acquisition-related costs, including amortization of
acquired intangible assets and goodwill not allocated to the segments are
included in the business unit results. |
|
|
|
|
|
|
|
|
|
|
2)
Increased/(decreased) valuation adjustments taken at Group level resulting
from the difference between the statistical and actual credit provisions. |
|
|
|
|
|
|
|
|
|
|
3)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses, which did not have an impact on the taxes reported. |
|
|
|
|
|
|
|
|
|
|
Corporate
& Retail Banking balance sheet information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
% from |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
|
|
70'951 |
72'658 |
72'372 |
(2) |
(2) |
|
|
|
|
|
|
|
|
|
|
Due
from customers |
|
|
|
|
26'292 |
27'483 |
28'889 |
(4) |
(9) |
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
|
|
35'267 |
35'592 |
34'279 |
(1) |
3 |
|
|
|
|
|
|
|
|
|
|
Due
to customers in savings and investment deposits |
|
|
|
|
17'952 |
17'586 |
17'631 |
2 |
2 |
|
|
|
|
|
|
|
|
|
|
Due
to customers, other |
|
|
|
|
26'402 |
26'686 |
29'218 |
(1) |
(10) |
|
|
|
|
|
|
|
|
|
|
Corporate
& Retail Banking key information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
months |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2002 |
3Q2002 |
4Q2001 |
2002 |
2001 |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio
1) |
|
|
|
|
77.6% |
67.6% |
74.6% |
68.7% |
71.1% |
|
|
|
|
|
|
|
|
|
|
Return
on average allocated capital
1) |
|
|
|
|
4.8% |
10.5% |
4.6% |
9.3% |
7.8% |
|
|
|
|
|
|
|
|
|
|
Average
allocated capital in CHF m |
|
|
|
|
3'802 |
3'893 |
3'901 |
3'898 |
3'905 |
|
|
|
|
|
|
|
|
|
|
Pre-tax
margin
1) |
|
|
|
|
10.1% |
21.6% |
10.1% |
19.4% |
16.6% |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses/operating income |
|
|
|
|
40.7% |
38.5% |
40.3% |
38.6% |
41.7% |
|
|
|
|
|
|
|
|
|
|
Net
interest margin |
|
|
|
|
233
bp |
238
bp |
228
bp |
235
bp |
226
bp |
|
|
|
|
|
|
|
|
|
|
Loan
growth |
|
|
|
|
(2.4%) |
(1.4%) |
0.2% |
(2.5%) |
(1.4%) |
|
|
|
|
|
|
|
|
|
|
Net
new assets in CHF bn |
|
|
|
|
0.2 |
(2.3) |
0.9 |
(3.2) |
1.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
Deposit/loan
ratio |
|
|
|
|
|
|
72.1% |
70.2% |
74.2% |
|
|
|
|
|
|
|
|
|
|
Assets
under management in CHF bn |
|
|
|
|
|
|
48.0 |
47.8 |
55.9 |
|
|
|
|
|
|
|
|
|
|
Number
of employees |
|
|
|
|
|
|
6'702 |
6'818 |
6'898 |
|
|
|
|
|
|
|
|
|
|
Number
of branches |
|
|
|
|
|
|
223 |
223 |
227 |
|
|
|
|
|
|
|
|
|
|
1)
Based
on the segment results, which exclude certain acquisition-related costs
not allocated to the segment. |
|
|
|
|
|
|
|
|
|
|
|
Life
& Pensions income statement
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Gross
premiums written |
|
4'218 |
4'543 |
4'899 |
(7) |
(14) |
19'019 |
17'413 |
9 |
|
|
|
|
|
|
|
|
|
|
Reinsurance
ceded |
|
(14) |
171 |
(61) |
|
(77) |
(40) |
(210) |
(81) |
|
|
|
|
|
|
|
|
|
|
Net
premiums written |
|
4'204 |
4'714 |
4'838 |
(11) |
(13) |
18'979 |
17'203 |
10 |
|
|
|
|
|
|
|
|
|
|
Change
in provision for unearned premiums |
|
29 |
8 |
(5) |
263 |
|
(4) |
(15) |
(73) |
|
|
|
|
|
|
|
|
|
|
Net
premiums earned |
|
4'233 |
4'722 |
4'833 |
(10) |
(12) |
18'975 |
17'188 |
10 |
|
|
|
|
|
|
|
|
|
|
Death
and other benefits incurred |
|
(5'373) |
(2'672) |
(3'234) |
101 |
66 |
(14'692) |
(12'167) |
21 |
|
|
|
|
|
|
|
|
|
|
Change
in provision for future policyholder benefits (technical) |
|
1'116 |
(2'506) |
(2'059) |
|
|
(5'750) |
(6'572) |
(13) |
|
|
|
|
|
|
|
|
|
|
Change
in provision for future policyholder benefits (separate account)
2) |
|
80 |
1'104 |
(652) |
(93) |
|
1'730 |
1'115 |
55 |
|
|
|
|
|
|
|
|
|
|
Dividends
to policyholders incurred |
|
738 |
207 |
458 |
257 |
61 |
1'758 |
(287) |
|
|
|
|
|
|
|
|
|
|
|
Acquisition
cost (incl. change in DAC/PVFP) |
|
(160) |
(358) |
(141) |
(55) |
13 |
(716) |
(556) |
29 |
|
|
|
|
|
|
|
|
|
|
Non-deferrable
cost |
|
(409) |
(333) |
(311) |
23 |
32 |
(1'463) |
(1'312) |
12 |
|
|
|
|
|
|
|
|
|
|
Investment
income general account |
|
333 |
309 |
663 |
8 |
(50) |
1'438 |
4'766 |
(70) |
|
|
|
|
|
|
|
|
|
|
Investment
income separate account
2) |
|
(80) |
(1'104) |
652 |
(93) |
|
(1'730) |
(1'115) |
55 |
|
|
|
|
|
|
|
|
|
|
Interest
received and paid |
|
(39) |
(30) |
(67) |
30 |
(42) |
(92) |
(139) |
(34) |
|
|
|
|
|
|
|
|
|
|
Interest
on bonuses credited to policyholders |
|
(41) |
(29) |
(36) |
41 |
14 |
(146) |
(135) |
8 |
|
|
|
|
|
|
|
|
|
|
Other
income/(expenses) |
|
(24) |
5 |
2 |
|
|
74 |
(53) |
|
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before cumulative effect of change in accounting
principle and taxes |
|
374 |
(685) |
108 |
|
246 |
(614) |
733 |
|
|
|
|
|
|
|
|
|
|
|
Taxes
3) |
|
(281) |
(396) |
(28) |
(29) |
|
(786) |
(153) |
414 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before cumulative effect of change in accounting
principle and minority interests (segment result) |
|
93 |
(1'081) |
80 |
|
16 |
(1'400) |
580 |
|
|
|
|
|
|
|
|
|
|
|
1)
The presentation of segment results differs from the presentation of the
Group's consolidated results as it reflects the way the insurance business
is managed, which is in line with peers in the insurance industry. Certain
acquisition-related costs, including amortization of acquired intangible
assets and goodwill and cumulative effect of change in accounting
principle not allocated to the segments are included in the business unit
results. |
|
|
|
|
|
|
|
|
|
|
2)
This represents the market impact for separate account (or unit-linked)
business, where the investment risk is borne by the policyholder. |
|
|
|
|
|
|
|
|
|
|
3)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses. If the change in accounting principle had not been adopted in
4Q2002, taxes would have been CHF -501 m for 4Q2002. |
|
|
|
|
|
|
|
|
|
|
Life
& Pensions key information |
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12
months |
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4Q2002 |
3Q2002 |
4Q2001 |
2002 |
2001 |
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Expense
ratio
1) |
|
|
|
|
13.4% |
14.6% |
9.4% |
11.5% |
10.9% |
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Growth
in gross premiums written |
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|
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|
(13.9%) |
44.8% |
16.0% |
9.2% |
12.7% |
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Return
on invested assets (excluding separate account business) |
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Current
income |
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|
3.6% |
3.6% |
4.1% |
3.9% |
4.3% |
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Realized
gains/losses and other income/expenses |
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|
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|
(2.5%) |
(2.4%) |
(1.6%) |
(2.5%) |
0.5% |
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Total
return on invested assets
2) |
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|
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|
1.2% |
1.2% |
2.5% |
1.4% |
4.8% |
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Net
new assets in CHF bn
3) |
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|
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|
(1.3) |
0.4 |
1.8 |
3.4 |
5.0 |
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Total
sales in CHF m
4) |
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|
|
|
5'283 |
5'240 |
6'172 |
22'790 |
22'505 |
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31.12.02 |
30.09.02 |
31.12.01 |
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Assets
under management in CHF bn
5) |
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|
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|
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|
110.8 |
113.0 |
115.2 |
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Technical
provisions in CHF m |
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|
|
|
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|
105'939 |
108'098 |
108'326 |
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Number
of employees |
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|
|
|
|
|
7'815 |
7'927 |
7'755 |
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1)
Operating expenses (i.e. acquisition and non-deferrable cost)/net premiums
earned. |
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2)
Total investment return on invested assets includes depreciation on real
estate and investment expenses as well as investment income and realized
gains and losses. |
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3)
Based on change in technical provisions for traditional business, adjusted
for technical interests, net inflow of separate account business and
change in off-balance sheet business such as funds. |
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4)
Includes gross premiums written and off-balance sheet sales. |
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5)
Based on savings-related provisions for policyholders plus off-balance
sheet assets. |
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Insurance
income statement
1) |
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Change |
Change |
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Change |
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in
% from |
in
% from |
12
months |
in
% from |
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|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
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|
|
|
|
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|
Gross
premiums written |
|
3'846 |
3'755 |
3'685 |
2 |
4 |
18'391 |
18'412 |
0 |
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Reinsurance
ceded |
|
(299) |
(232) |
(209) |
29 |
43 |
(1'150) |
(1'572) |
(27) |
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|
Net
premiums written |
|
3'547 |
3'523 |
3'476 |
1 |
2 |
17'241 |
16'840 |
2 |
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Change
in provision for unearned premiums and in provision for future policy
benefits (health) |
|
485 |
414 |
319 |
17 |
52 |
(1'538) |
(1'833) |
(16) |
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Net
premiums earned |
|
4'032 |
3'937 |
3'795 |
2 |
6 |
15'703 |
15'007 |
5 |
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|
Claims
and annuities incurred, net |
|
(3'034) |
(2'920) |
(2'837) |
4 |
7 |
(11'749) |
(11'509) |
2 |
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Dividends
to policyholders incurred, net |
|
109 |
(53) |
(50) |
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|
106 |
(311) |
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Acquisition
cost (incl. change in DAC/PVFP) |
|
(647) |
(630) |
(584) |
3 |
11 |
(2'529) |
(2'391) |
6 |
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Non-deferrable
cost |
|
(481) |
(496) |
(497) |
(3) |
(3) |
(1'959) |
(1'944) |
1 |
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Underwriting
result, net |
|
(21) |
(162) |
(173) |
(87) |
(88) |
(428) |
(1'148) |
(63) |
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Net
investment income |
|
59 |
110 |
503 |
(46) |
(88) |
(10) |
2'217 |
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Interest
received and paid |
|
(39) |
(36) |
(39) |
8 |
0 |
(106) |
(98) |
8 |
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|
Other
income/(expenses) |
|
(69) |
(115) |
(216) |
(40) |
(68) |
(349) |
(165) |
112 |
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|
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|
Net
operating profit/(loss) before cumulative effect of change in accounting
principle and taxes |
|
(70) |
(203) |
75 |
(66) |
|
(893) |
806 |
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|
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|
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|
Taxes
2) |
|
76 |
(158) |
7 |
|
|
(99) |
(224) |
(56) |
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|
|
|
|
|
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|
Net
operating profit/(loss) before cumulative effect of change in accounting
principle and minority interests (segment result) |
|
6 |
(361) |
82 |
|
(93) |
(992) |
582 |
|
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|
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|
|
1)
The presentation of segment results differs from the presentation of
the Group's consolidated results as it reflects the way the insurance
business is managed, which is in line with peers in the insurance
industry. Certain acquisition-related costs, including amortization of
acquired intangible assets and goodwill and cumulative effect of change in
accounting principle not allocated to the segments are included in the
business unit results. |
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|
|
2)
In
4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses. If the change in accounting principle had not been adopted in
4Q2002, taxes would have been CHF -200 m for 4Q2002. |
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Insurance
key information |
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12
months |
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|
|
|
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|
|
|
4Q2002 |
3Q2002 |
4Q2001 |
2002 |
2001 |
|
|
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|
|
|
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|
|
Combined
ratio (excluding dividends to policyholders) |
|
|
|
|
103.2% |
102.8% |
103.3% |
103.4% |
105.6% |
|
|
|
|
|
|
|
|
|
|
Claims
ratio
1) |
|
|
|
|
75.2% |
74.2% |
74.8% |
74.8% |
76.7% |
|
|
|
|
|
|
|
|
|
|
Expense
ratio
2) |
|
|
|
|
28.0% |
28.6% |
28.5% |
28.6% |
28.9% |
|
|
|
|
|
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|
Return
on invested assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
income |
|
|
|
|
3.9% |
4.1% |
3.9% |
4.2% |
4.6% |
|
|
|
|
|
|
|
|
|
|
Realized
gains/losses and other income/expenses |
|
|
|
|
(3.4%) |
(2.5%) |
2.4% |
(4.3%) |
2.3% |
|
|
|
|
|
|
|
|
|
|
Total
return on invested assets
3) |
|
|
|
|
0.5% |
1.6% |
6.3% |
(0.1%) |
6.9% |
|
|
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|
|
31.12.02 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
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|
|
Assets
under management in CHF bn |
|
|
|
|
|
|
30.7 |
31.1 |
30.5 |
|
|
|
|
|
|
|
|
|
|
Technical
provisions in CHF m |
|
|
|
|
|
|
28'745 |
29'706 |
27'738 |
|
|
|
|
|
|
|
|
|
|
Number
of employees |
|
|
|
|
|
|
24'315 |
24'224 |
22'197 |
|
|
|
|
|
|
|
|
|
|
1)
Claims and annuities incurred, net/net premiums earned. |
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|
|
|
|
|
|
|
|
|
2)
Operating expenses (i.e. acquisition and non-deferrable cost)/net premiums
earned. |
|
|
|
|
|
|
|
|
|
|
3)
Total investment return on invested assets includes depreciation on real
estate and investment expenses as well as investment income and realized
gains and losses. |
|
|
|
|
|
|
|
|
|
|
REVIEW
OF BUSINESS UNITS | CREDIT SUISSE FIRST BOSTON
Credit
Suisse First Boston recorded a net loss of USD 811 million (CHF 1.3 billion) for
the fourth quarter and a net loss of USD 1.2 billion (CHF 1.9 billion) for the
full year 2002, including after-tax exceptional items of USD 813 million (CHF
1.3 billion). In addition, this result reflects reduced revenues, against the
backdrop of a protracted downturn in the markets, and charges associated with
legacy assets. Operating expenses decreased 14% quarter-on-quarter and were down
23% for the full year 2002 compared with 2001. Excluding exceptional items, the
cumulative effect of a change in accounting principles and the amortization of
acquired intangible assets and goodwill, Credit Suisse First Boston posted a net
operating profit of USD 11 million (CHF 15 million) in the fourth quarter and
USD 140 million (CHF 219 million) for the full year 2002.
Credit
Suisse First Boston posted a net loss of USD 811 million (CHF 1.3 billion) in
the fourth quarter, including after-tax exceptional items of USD 813 million (CHF
1.3 billion). This compared with a net loss of USD 425 million (CHF 679 million)
in the third quarter 2002 and a net loss of USD 939 million (CHF 1.6 billion) in
the fourth quarter of 2001.
For the full
year 2002, Credit Suisse First Boston posted a net loss of USD 1.2 billion (CHF
1.9 billion), compared with a net loss of USD 821 million (CHF 1.4 billion) in
2001. Results for 2002 and 2001 include pre-tax exceptional items of USD 890
million (CHF 1.4 billion) and USD 845 million (CHF 1.4 billion), respectively. A
change in accounting principles allowing the recognition of deferred tax assets
on net operating losses led to the recognition of tax benefits of USD 556
million (CHF 868 million) in 2002. Full year 2002 results also reflect the
positive cumulative effect of the change in accounting principles of USD 162
million (CHF 254 million) from prior years.
Excluding
exceptional items, the positive cumulative effect of the change in accounting
principles and the amortization of acquired intangible assets and goodwill,
Credit Suisse First Boston posted a net operating profit of USD 140 million (CHF
219 million) for the full year 2002, compared with USD 530 million (CHF 893
million) in 2001.
The pre-tax
exceptional items of USD 890 million (CHF 1.4 billion), or USD 813 million (CHF
1.3 billion) after tax, which occurred in the fourth quarter 2002, comprise a
pre-tax loss of USD 86 million (CHF 134 million), or USD 250 million (CHF 390
million) after tax, related to the sale of Pershing; a USD 150 million (CHF 234
million) pre-tax charge for the agreement in principle with US regulators
involving research analyst independence and the allocation of IPO shares to
executive officers; a USD 450 million (CHF 702 million) pre-tax provision for
Credit Suisse First Bostons private litigation involving research analyst
independence, certain IPO allocation practices, Enron and other related
litigation; and a USD 204 million (CHF 319 million) pre-tax charge related to
the previously announced USD 500 million cost reduction program. Expenses
associated with this cost reduction program include USD 165 million (CHF 257
million) of severance-related costs, USD 21 million (CHF 33 million) of excess
facilities costs, and USD 18 million (CHF 28 million) of costs associated with
the sale of a 90% participation in its non-core South African equity brokerage
business to a management empowerment company in South Africa.
The
provision relating to private litigation represents managements current
estimate after consultation with counsel of the probable aggregate costs
associated with such matters. Credit Suisse First Boston believes that it has
substantial defenses in these private litigation matters, which are at an early
stage. Given that it is difficult to predict the outcome of these matters, where
claimants seek large or indeterminate damages or where the cases present novel
theories or involve a large number of parties, Credit Suisse First Boston cannot
state with confidence what the timing or eventual outcome will actually be. The
provision may be subject to revision in the future.
Fourth
quarter 2002 operating income was down 11% on the third quarter to USD 2.4
billion (CHF 3.4 billion), primarily due to reduced revenues in the
Institutional Securities segment (formerly the Investment Banking segment). The
segments Fixed Income division reported the most significant decrease,
related primarily to developed markets credit and interest rate products.
However, the Investment Banking division reported an increase in operating
income in the fourth quarter, principally in the private equity business.
Compared with the same period of 2001, the segments fourth quarter operating
income fell 13%, with declines across most divisions. For the full year 2002,
Credit Suisse First Bostons operating income decreased 21% versus 2001, to
USD 11.8 billion (CHF 18.4 billion).
As a result
of Credit Suisse First Bostons continued commitment to cost savings, fourth
quarter operating expenses fell 14% versus the previous quarter and were down
13% on the fourth quarter 2001. For the full year 2002, operating expenses
declined by 23% or USD 2.7 billion (CHF 5.8 billion) to USD 9.3 billion (CHF
14.5 billion). Much of this cost reduction was driven by a 14% decline in
headcount during 2002 and the sale of non-core businesses. Personnel expenses
declined 24% compared with 2001, and other operating expenses were down 20%. As
previously announced, Credit Suisse First Boston launched a further cost
reduction program in the fourth quarter to reduce annual operating expenses by
approximately USD 500 million by means of further headcount reductions. The
business units personnel expense/revenue ratio on an operating basis improved
from 54.4% in 2001 to 52.6% in 2002.
In January
2003, Credit Suisse First Boston announced a definitive agreement to sell its
Pershing operation to The Bank of New York Company, Inc. for USD 2.0 billion
(approximately CHF 2.8 billion) in cash, together with the repayment of a USD
480 million (CHF 667 million) subordinated loan and an additional contingent
payment of up to USD 50 million (CHF 70 million) based on future performance.
With this transaction, which is expected to close in the first half of 2003
subject to regulatory and other conditions, the regulatory capital of Credit
Suisse First Boston and Credit Suisse Group will be increased through the
elimination of approximately USD 500 million (CHF 695 million) in goodwill and a
reduction of USD 1.6 billion (CHF 2.2 billion) in risk-weighted assets. The 2002
operating income and operating expenses of Pershing amounted to USD 854 million
(CHF 1.3 billion) and USD 661 million (CHF 1.0 billion), respectively.
Assets under
management, including private equity, totaled USD 372.5 billion (CHF 517.8
billion) as of December 31, 2002, up 3.7% on a US dollar basis from September
30, 2002. This increase reflects foreign exchange movements and a slight
recovery in major market indices during the fourth quarter, but was partially
offset by net asset outflows. Compared with December 31, 2001, assets under
management declined 8.5% on a US dollar basis. Discretionary assets under
management as of December 31, 2002, totaled USD 234.1 billion (CHF 325.5
billion) up marginally from September 30, 2002, and down 8.4% versus
December 31, 2001, on a US dollar basis. Credit Suisse Asset Management
continued to experience performance-related net asset outflows through the
fourth quarter. The business units advisory assets under management were USD
138.3 billion (CHF 192.3 billion) as of December 31, 2002, up 9.0% from
September 30, 2002, and down 8.8% versus year-end 2001 on a US dollar basis.
In response
to the current market environment, Credit Suisse First Boston has implemented
several measures, which include the alignment of its cost base to current
conditions, including a reduction in guaranteed compensation and the reduction
of the risk level associated with the legacy asset portfolios. These measures,
along with the scheduled completion of the amortization of DLJ retention
payments in June 2003, are expected to enhance the future results of the
business unit. Credit Suisse First Boston will continue to build on the strength
of its core franchise and platform.
Institutional
Securities
The
Institutional Securities segment reported fourth quarter operating income of USD
1.9 billion (CHF 2.7 billion), down 12% on the third quarter 2002 and down 13%
versus the fourth quarter of 2001, reflecting declines in the Fixed Income and
Equity businesses. For the full year 2002, the segments operating income
declined 23% compared with 2001, due to decreases in the Fixed Income and Equity
businesses as well as writedowns related to the legacy asset portfolio. Fourth
quarter 2002 operating expenses were USD 1.5 billion (CHF 2.1 billion), a
decrease of 16% on the previous quarter and of 15% on the fourth quarter 2001,
due primarily to reductions in incentive compensation. As a result of cost
reduction measures, operating expenses for 2002 decreased 24%, with personnel
expenses down USD 1.8 billion (CHF 3.7 billion), or 26%, and other operating
expenses down USD 620 million (CHF 1.4 billion), or 20%, versus the previous
year.
The
corporate credit environment remained unfavorable in the fourth quarter. Credit
provisions of USD 298 million (CHF 447 million) and USD 899 million (CHF 1.4
billion) were recorded against impaired corporate lending assets for the fourth
quarter and full year 2002, respectively. This compared with provisions of USD
403 million (CHF 630 million) in the previous quarter and of USD 762 million (CHF
1.3 billion) in 2001. Additionally, a credit provision of USD 340 million (CHF
530 million) related to a change in estimate for the risk of loss inherent in
the portfolio of non-impaired loans and commitments was recorded in the fourth
quarter of 2002. During the fourth quarter, Credit Suisse Group released a
portion of its reserve for general banking risks, allocating USD 245 million (CHF
382 million) of this release to Credit Suisse First Boston to offset the
after-tax impact of the inherent loan loss; this release was reflected as
extraordinary income. Credit provisions related to non-continuing real estate
lending activity totaled USD 154 million (CHF 241 million) for 2002, compared
with a net release of provisions of USD 38 million (CHF 64 million) in 2001, and
a net release of USD 8 million (CHF 17 million) recorded in the fourth quarter
of 2002. Provisions of USD 91 million (CHF 142 million) related to excess office
facilities were recorded in 2002.
Fixed
Income operating income for the fourth quarter of 2002 was down 47% versus
the third quarter, to USD 587 million (CHF 806 million). This decline was
primarily attributable to the developed markets credit products business, which
was adversely impacted by reduced liquidity and continued uncertainty in the
utility, airline and telecommunications sectors. Additionally, notes issued by
affiliates of National Century Financial Enterprises, Inc. (NCFE), in the
principal amount of USD 258 million held by Credit Suisse First Boston for its
own account, were written down by USD 214 million (CHF 332 million) to 17% of
their principal amount. Approximately one-half of this writedown was recorded
through operating income, with the other half recorded through provisions. The
fourth quarter saw a decline in the emerging markets business which had been
favorably impacted in Brazil in the third quarter and a decline in the
trading results of the interest rate products business, also including a
seasonal activity decline.
Compared
with the same period of 2001, fourth quarter operating income declined 30%.
Declines in the developed markets credit products and interest rate products
businesses in the fourth quarter 2002 were partially offset by an improvement in
emerging market results, which had been adversely impacted in the fourth quarter
of 2001 by difficult economic conditions in emerging markets, including
Argentina.
For the full
year 2002, operating income decreased 25% versus 2001, due in particular to
declines in the interest rate products business, which was positively impacted
by significant interest rate declines in the US and Europe in 2001. The Fixed
Income business ranked number one in high yield and asset-backed new issuances
for 2002 and improved its overall global debt issuance position to second.
Equity operating
income decreased 22%, to USD 562 million (CHF 806 million), in the fourth
quarter 2002 compared with the third quarter, due to a decline in the
derivatives business. However, fourth quarter operating income from the cash
businesses was stable compared with the previous quarter. Compared to the fourth
quarter of 2001, operating income declined 20%, primarily as a result of
declines in the US cash businesses. Operating income totaled USD 2.9 billion (CHF
4.5 billion) for the full year 2002, down 26% on 2001. The 2002 equity market
was challenging, with reduced volumes in US new issuances, depressed trading
volumes and reduced commission margins in the cash customer businesses. Most
major market indices posted declines for the year. Operating income from
convertible securities also decreased, impacted by corporate defaults, widening
credit spreads, declines in the telecom and energy sectors, and reduced new
issuance activity. In 2002, Credit Suisse First Boston ranked fourth in global
equity new issuances, tied for first place in global equity research, ranked
first in pan-European and Latin American research and second in non-Japan Asia
research.
Investment
Bankings fourth quarter 2002 operating income, which includes private
equity, increased 68% versus the previous quarter to USD 813 million (CHF 1.2
billion), due principally to gains on the sale of an investment in Swiss Re and
slightly higher banking results. Merger and acquisition (M&A) and equity new
issuance activity remained depressed. Operating income increased 38% compared to
the fourth quarter of 2001 due to gains in the private equity area, partially
offset by declines as a result of lower fees from equity new issuances and
M&A activity. The divisions full year operating income increased 3%
versus 2001, reflecting gains from sales and increased management fees in the
private equity business. However, these gains were partially offset by reduced
fee income from M&A activity. During 2002, the value of worldwide merger
transactions fell 30%, with Credit Suisse First Boston ranking third in terms of
US dollar volume of announced transactions for 2002.
Private
equity net gains (both realized and unrealized gains and losses) were USD 230
million (CHF 355 million) in the fourth quarter 2002, compared with net gains of
USD 12 million (CHF 14 million) in the third quarter 2002 and net losses of USD
97 million (CHF 167 million) in the fourth quarter of 2001. A full year net gain
of USD 364 million (CHF 568 million) was recorded for 2002, compared with a net
loss of USD 258 million (CHF 436 million) in 2001. These amounts include gains
from the sale of an investment in Swiss Re of USD 309 million (CHF 473 million)
and USD 96 million (CHF 141 million) in the fourth and third quarters of 2002,
respectively. Total gains from the sale of the investment in Swiss Re amounted
to USD 629 million (CHF 981 million) in 2002 and USD 148 million (CHF 251
million) in 2001; the entire stake in Swiss Re has now been sold. Management and
performance fees amounted to USD 53 million (CHF 78 million) in the fourth
quarter 2002, versus USD 56 million (CHF 83 million) in the previous quarter and
USD 55 million (CHF 94 million) in the fourth quarter of 2001. Total management
and performance fees were USD 225 million (CHF 351 million) and USD 253 million
(CHF 428 million) for 2002 and 2001, respectively. The book value of the private
equity investments was USD 1.9 billion (CHF 2.7 billion) and fair value was USD
2.0 billion (CHF 2.8 billion) as of December 31, 2002. As announced in 2002,
Credit Suisse First Boston is exploring the sale of certain private equity
investments, including investments in mature third-party leverage buyout funds.
The aggregate amount of losses reported against operating income for these
private equity investments totaled USD 123 million (CHF 188 million) and USD 275
million (CHF 430 million) for the fourth quarter and full year 2002,
respectively.
Operating
losses of USD 85 million (CHF 126 million) for the fourth quarter and of USD 286
million (CHF 446 million) for the full year 2002 were reported in Other within the Institutional Securities segment, and were primarily attributable to
losses generated by the non-continuing real estate and distressed asset
portfolios. The net exposure of the non-continuing real estate portfolio including unfunded commitments was USD 1.5 billion (CHF 2.1 billion) as of
December 31, 2002, a decrease of USD 548 million (CHF 971 million) and USD 1.4
billion (CHF 2.8 billion) versus September 30, 2002, and December 31, 2001,
respectively. As of December 31, 2002, the carrying amount of distressed
portfolio assets totaled USD 512 million (CHF 712 million), a decrease of 18%
versus September 30, 2002, and of 53% compared with December 31, 2001. The
aggregate amount of charges related to these non-continuing legacy businesses in
2002 was USD 797 million (CHF 1.2 billion), of which USD 643 million (CHF 1.0
billion) was netted against operating income and USD 154 million (CHF 240
million) was included in provisions. In the fourth quarter 2002, charges related
to non-continuing legacy businesses amounted to USD 149 million (CHF 213
million), of which USD 157 million (CHF 231 million) was netted against
operating income and USD 8 million (CHF 17 million) was reflected as a reduction
in provisions.
CSFB
Financial Services
CSFB
Financial Services reported operating income of USD 484 million (CHF 707
million) for the fourth quarter 2002, down 3% on the third quarter 2002 and 19%
on the fourth quarter of 2001. Year-on-year, operating income decreased 13% to
USD 2.1 billion (CHF 3.2 billion) due to net outflows of assets under
management, a decline in major market indices across the globe, lower trading
volumes, an overall decline in customer debit balances, and the impact of the
sale of CSFB direct and Autranet. Operating expenses decreased 15%
compared with 2001 due to the impact of a number of cost reduction initiatives,
including a 16% reduction in headcount, greater discipline regarding
discretionary spending, and the sale of CSFB direct and Autranet.
Excluding divestitures, expenses were down 5% compared to 2001. Fourth quarter
2002 operating expenses were 4% and 3% lower than those in the previous quarter
and the fourth quarter of 2001, respectively.
At Credit
Suisse Asset Management , fourth quarter and full year 2002 operating income
declined versus the fourth quarter and full year 2001 as a result of lower fees
associated with the net outflow of assets particularly in the US and
lower performance fees. Fourth quarter operating income increased 3% compared
with the previous quarter, despite a 4.6% decrease in discretionary
institutional assets under management. During 2002, discretionary institutional
assets under management declined CHF 85.5 billion, or 23.5%, versus 2001. The
decrease in assets under management was attributable to market declines, foreign
exchange movements and performance-related net asset outflows. In December 2002,
Credit Suisse Asset Management announced organizational changes designed to
strengthen its global platform, including a focus on global rather than regional
management.
Pershings
fourth quarter 2002 operating income was slightly below the preceding
quarter and the fourth quarter of 2001. For the full year 2002, operating income
declined 6% to USD 854 million (CHF 1.3 billion) versus 2001, reflecting lower
transaction volumes that adversely impacted trading and commission income.
Trades per day averaged 122,600 for the fourth quarter compared with 121,000 for
the third quarter of 2002 and 133,100 for the fourth quarter of 2001. Average
trades per day for 2002 totaled 125,800, 14% lower than the 146,100 average
trades per day in 2001. Reduced customer debit balances, averaging USD 4.6
billion for 2002 compared with USD 6.2 billion in 2001, contributed to a
year-on-year decline in interest income. Customer debit balances averaged USD
4.2 billion in the fourth quarter of 2002, USD 4.4 billion in the third quarter
of 2002 and USD 5.3 billion in the fourth quarter of 2001. Operating expenses in
2002 amounted to USD 661 million (CHF 1.0 billion). In January 2003, Credit
Suisse First Boston announced an agreement to sell Pershing, as noted above.
Private
Client Services recorded a decrease in operating income in the fourth
quarter 2002, compared with the previous quarter and the fourth quarter 2001.
Operating income was down, reflecting the weak equity market environment, with
customer trading, customer debit balances and assets under management declining.
Total transactions in 2002 amounted to 1.4 million, down 14% from 1.7 million
transactions recorded in 2001. Customer debit balances averaged USD 751 million
in 2002 versus USD 1.2 billion in 2001. Private Client Services net new
assets stood at CHF 8.0 billion for the full year 2002 compared with CHF 15.8
billion for 2001, with an increase of CHF 2.7 billion in the fourth quarter of
2002 compared with the third quarter of 2002.
Credit
Suisse First Boston business unit income statement
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
USD m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
2'361 |
2'638 |
2'757 |
(11) |
(14) |
11'769 |
14'948 |
(21) |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
1'068 |
1'394 |
1'124 |
(23) |
(5) |
6'191 |
8'125 |
(24) |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
802 |
775 |
1'016 |
3 |
(21) |
3'086 |
3'852 |
(20) |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
1'870 |
2'169 |
2'140 |
(14) |
(13) |
9'277 |
11'977 |
(23) |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
491 |
469 |
617 |
5 |
(20) |
2'492 |
2'971 |
(16) |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
107 |
139 |
157 |
(23) |
(32) |
485 |
562 |
(14) |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses
2) |
|
657 |
560 |
477 |
17 |
38 |
1'679 |
912 |
84 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before extraordinary and exceptional items,
acquisition-related costs, cumulative effect of change in accounting
principle and taxes |
|
(273) |
(230) |
(17) |
19 |
|
328 |
1'497 |
(78) |
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
246 |
0 |
0 |
|
|
262 |
(10) |
|
|
|
|
|
|
|
|
|
|
|
Taxes
3)
4) |
|
138 |
84 |
55 |
64 |
151 |
30 |
(310) |
|
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before exceptional items, acquisition-related
costs, cumulative effect of change in accounting principle and minority
interests |
|
111 |
(146) |
38 |
|
192 |
620 |
1'177 |
(47) |
|
|
|
|
|
|
|
|
|
|
Acquisition
interest |
|
(57) |
(68) |
(100) |
(16) |
(43) |
(323) |
(489) |
(34) |
|
|
|
|
|
|
|
|
|
|
Amortization
of retention payments |
|
(97) |
(100) |
(128) |
(3) |
(24) |
(416) |
(480) |
(13) |
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
(209) |
(207) |
(222) |
1 |
(6) |
(835) |
(862) |
(3) |
|
|
|
|
|
|
|
|
|
|
Exceptional
items |
|
(890) |
0 |
(845) |
|
5 |
(890) |
(845) |
5 |
|
|
|
|
|
|
|
|
|
|
Tax
impact |
|
169 |
96 |
319 |
76 |
(47) |
488 |
679 |
(28) |
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle
3) |
|
162 |
|
|
|
|
162 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
(811) |
(425) |
(938) |
91 |
(14) |
(1'194) |
(820) |
46 |
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
0 |
0 |
(1) |
|
(100) |
0 |
(1) |
(100) |
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
(811) |
(425) |
(939) |
91 |
(14) |
(1'194) |
(821) |
45 |
|
|
|
|
|
|
|
|
|
|
See
page 23 for footnotes. |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
to net operating profit/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
USD m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
(811) |
(425) |
(939) |
91 |
(14) |
(1'194) |
(821) |
45 |
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
209 |
207 |
222 |
1 |
(6) |
835 |
862 |
(3) |
|
|
|
|
|
|
|
|
|
|
Exceptional
items |
|
890 |
0 |
845 |
|
5 |
890 |
845 |
5 |
|
|
|
|
|
|
|
|
|
|
Tax
impact |
|
(115) |
(37) |
(242) |
211 |
(52) |
(229) |
(356) |
(36) |
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle |
|
(162) |
|
|
|
|
(162) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) |
|
11 |
(255) |
(114) |
|
|
140 |
530 |
(74) |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse First Boston business unit income statement
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
3'401 |
3'856 |
4'781 |
(12) |
(29) |
18'360 |
25'262 |
(27) |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
1'512 |
2'031 |
1'969 |
(26) |
(23) |
9'658 |
13'731 |
(30) |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
1'184 |
1'157 |
1'747 |
2 |
(32) |
4'815 |
6'512 |
(26) |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
2'696 |
3'188 |
3'716 |
(15) |
(27) |
14'473 |
20'243 |
(29) |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
705 |
668 |
1'065 |
6 |
(34) |
3'887 |
5'019 |
(23) |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
156 |
209 |
270 |
(25) |
(42) |
757 |
951 |
(20) |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses
2) |
|
993 |
867 |
810 |
15 |
23 |
2'618 |
1'541 |
70 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before extraordinary and exceptional items,
acquisition-related costs, cumulative effect of change in accounting
principle and taxes |
|
(444) |
(408) |
(15) |
9 |
|
512 |
2'527 |
(80) |
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
383 |
(1) |
0 |
|
|
408 |
(15) |
|
|
|
|
|
|
|
|
|
|
|
Taxes
3)
4) |
|
220 |
143 |
90 |
54 |
144 |
48 |
(524) |
|
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before exceptional items, acquisition-related
costs, cumulative effect of change in accounting principle and minority
interests |
|
159 |
(266) |
75 |
|
112 |
968 |
1'988 |
(51) |
|
|
|
|
|
|
|
|
|
|
Acquisition
interest |
|
(80) |
(99) |
(175) |
(19) |
(54) |
(504) |
(828) |
(39) |
|
|
|
|
|
|
|
|
|
|
Amortization
of retention payments |
|
(142) |
(148) |
(220) |
(4) |
(35) |
(649) |
(812) |
(20) |
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
(308) |
(308) |
(379) |
0 |
(19) |
(1'303) |
(1'455) |
(10) |
|
|
|
|
|
|
|
|
|
|
Exceptional
items |
|
(1'389) |
0 |
(1'428) |
|
(3) |
(1'389) |
(1'428) |
(3) |
|
|
|
|
|
|
|
|
|
|
Tax
impact |
|
254 |
142 |
543 |
79 |
(53) |
761 |
1'148 |
(34) |
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle
3) |
|
254 |
|
|
|
|
254 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
(1'252) |
(679) |
(1'584) |
84 |
(21) |
(1'862) |
(1'387) |
34 |
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
0 |
0 |
(1) |
|
(100) |
0 |
(1) |
(100) |
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
(1'252) |
(679) |
(1'585) |
84 |
(21) |
(1'862) |
(1'388) |
34 |
|
|
|
|
|
|
|
|
|
|
1)
Certain reclassifications have been made to conform to the current presentation.
The business unit results reflect the results of the separate segments comprising
the business unit. Certain acquisition-related costs, including acquisition
interest, amortization of retention payments and amortization of acquired
intangible assets and goodwill, exceptional items and cumulative effect
of change in accounting principle not allocated to the segments are included
in the business unit results. The exceptional items are discussed on page
24. Certain other items, including brokerage, execution and clearing expenses
and contractor costs, have been reclassified in the segment and business
unit results and are adjusted at the Corporate Center in accordance with
Swiss GAAP and reflected in the Groups consolidated results. For a
complete reconciliation of the business unit results to the Groups
consolidated results and a discussion of the material reconciling items,
please refer to pages 33-36. |
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|
|
|
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|
|
2)
The amount in 4Q2001 includes valuation adjustments taken at Group level
of CHF 112 m (USD 66 m), resulting from the difference between the
statistical and the actual credit provisions (12 months 2001: CHF 194 m (USD
115 m)). As of 01.01.02, no such adjustments are recorded within Credit
Suisse First Boston and the amounts reported in 2002 reflect actual credit
provisions. |
|
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|
|
|
|
|
|
|
|
3)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses. If the change in accounting principle had not been adopted in
4Q2002, taxes would have been CHF -648 m (USD -418 m) for 4Q2002. The
retroactive application of this change in accounting principle would have
resulted in taxes for 4Q2002, 3Q2002 and 4Q2001 of CHF 22 m (USD 14 m),
CHF 148 m (USD 91 m) and CHF 366 m (USD 218 m), respectively, and CHF -248
m (USD -147 m) for the 12 months 2001. |
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|
|
|
|
|
|
|
4)
Excluding tax impact on acquisition-related costs as well as exceptional
items. |
|
|
|
|
|
|
|
|
|
|
Reconciliation
to net operating profit/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
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|
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|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
(1'252) |
(679) |
(1'585) |
84 |
(21) |
(1'862) |
(1'388) |
34 |
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
308 |
308 |
379 |
0 |
(19) |
1'303 |
1'455 |
(10) |
|
|
|
|
|
|
|
|
|
|
Exceptional
items |
|
1'389 |
0 |
1'428 |
|
(3) |
1'389 |
1'428 |
(3) |
|
|
|
|
|
|
|
|
|
|
Tax
impact |
|
(176) |
(55) |
(410) |
220 |
(57) |
(357) |
(602) |
(41) |
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle |
|
(254) |
|
|
|
|
(254) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) |
|
15 |
(426) |
(188) |
|
|
219 |
893 |
(75) |
|
|
|
|
|
|
|
|
|
|
Credit
Suisse First Boston business unit key information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
months |
|
|
|
|
|
|
|
|
|
|
based
on CHF amounts |
|
|
|
|
4Q2002 |
3Q2002 |
4Q2001 |
2002 |
2001 |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio
1) |
|
|
|
|
97.4% |
94.4% |
113.8% |
90.3% |
94.3% |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio (operating)
2) |
|
|
|
|
83.9% |
88.1% |
83.4% |
83.0% |
83.9% |
|
|
|
|
|
|
|
|
|
|
Return
on average allocated capital
1) |
|
|
|
|
(36.1%) |
(18.8%) |
(42.6%) |
(12.9%) |
(8.8%) |
|
|
|
|
|
|
|
|
|
|
Return
on average allocated capital (operating)
2)
3) |
|
|
|
|
0.4% |
(11.8%) |
(5.0%) |
1.5% |
5.7% |
|
|
|
|
|
|
|
|
|
|
Average
allocated capital in CHF m |
|
|
|
|
13'864 |
14'437 |
14'877 |
14'407 |
15'704 |
|
|
|
|
|
|
|
|
|
|
Pre-tax
margin
1) |
|
|
|
|
(52.0%) |
(25.7%) |
(48.5%) |
(15.0%) |
(8.2%) |
|
|
|
|
|
|
|
|
|
|
Pre-tax
margin (operating)
2) |
|
|
|
|
(8.3%) |
(17.0%) |
(8.6%) |
(1.3%) |
3.5% |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses/operating income
1) |
|
|
|
|
57.1% |
58.0% |
69.4% |
59.1% |
63.6% |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses/operating income (operating)
2) |
|
|
|
|
44.5% |
52.7% |
41.2% |
52.6% |
54.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
Number
of employees |
|
|
|
|
|
|
23'424 |
24'961 |
27'302 |
|
|
|
|
|
|
|
|
|
|
1)
Based on the business unit results including certain acquisition-related
costs, exceptional items and cumulative effect of change in accounting
principle not allocated to the segments as well as certain
reclassifications. Please refer to pages 33-36. |
|
|
|
|
|
|
|
|
|
|
2)
Based on the results of the separate segments comprising the business
unit, which exclude certain acquisition-related costs, exceptional items
and cumulative effect of change in accounting principle not allocated to
the segments and include certain reclassifications. Please refer to pages
33-36. |
|
|
|
|
|
|
|
|
|
|
3)
Excluding cumulative effect of change in accounting principle. |
|
|
|
|
|
|
|
|
|
|
Exceptional
items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
adjust. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel |
provisions |
Extraordinary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses |
and
losses |
expenses |
Pre-tax |
After-tax |
Pre-tax |
After-tax |
|
|
|
|
|
|
|
|
|
|
in
4Q2002 and 12 months 2002 |
|
|
in
USD m |
in
USD m |
in
USD m |
in
USD m |
in
USD m |
in
CHF m |
in
CHF m |
|
|
|
|
|
|
|
|
|
|
Provision
for the regulatory agreement in principle |
|
|
- |
150 |
- |
150 |
124 |
234 |
193 |
|
|
|
|
|
|
|
|
|
|
Loss
in connection with the sale of Pershing |
|
|
- |
- |
86 |
86 |
250 |
134 |
390 |
|
|
|
|
|
|
|
|
|
|
Restructuring |
|
|
155 |
31 |
18 |
204 |
147 |
319 |
230 |
|
|
|
|
|
|
|
|
|
|
Provision
for certain private litigation |
|
|
- |
450 |
- |
450 |
292 |
702 |
456 |
|
|
|
|
|
|
|
|
|
|
Exceptional
items |
|
|
|
|
|
890 |
813 |
1'389 |
1'269 |
|
|
|
|
|
|
|
|
|
|
Overview
of business unit Credit Suisse First Boston |
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
USD m |
|
in
CHF m |
|
|
|
|
|
|
|
|
|
|
|
|
CSFB |
|
|
|
CSFB |
|
|
|
|
|
|
|
|
|
|
|
|
Institutional |
Financial |
Credit
Suisse |
|
Institutional |
Financial |
Credit
Suisse |
|
|
|
|
|
|
|
|
|
4Q2002 |
|
Securities |
Services |
First
Boston |
|
Securities |
Services |
First
Boston |
|
|
|
|
|
|
|
|
|
Operating
income |
|
1'877 |
484 |
2'361 |
|
2'694 |
707 |
3'401 |
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
831 |
237 |
1'068 |
|
1'166 |
346 |
1'512 |
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
641 |
161 |
802 |
|
947 |
237 |
1'184 |
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
1'472 |
398 |
1'870 |
|
2'113 |
583 |
2'696 |
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
405 |
86 |
491 |
|
581 |
124 |
705 |
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
81 |
26 |
107 |
|
117 |
39 |
156 |
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
664 |
(7) |
657 |
|
1'006 |
(13) |
993 |
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before extraordinary and exceptional items,
acquisition-related costs, cumulative effect of change in accounting
principle and taxes |
|
(340) |
67 |
(273) |
|
(542) |
98 |
(444) |
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
246 |
0 |
246 |
|
383 |
0 |
383 |
|
|
|
|
|
|
|
|
|
Taxes
2) |
|
157 |
(19) |
138 |
|
247 |
(27) |
220 |
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before exceptional items, acquisition-related
costs and cumulative effect of change in accounting principle |
|
63 |
48 |
111 |
|
88 |
71 |
159 |
|
|
|
|
|
|
|
|
|
Acquisition
interest |
|
|
|
(57) |
|
|
|
(80) |
|
|
|
|
|
|
|
|
|
Amortization
of retention payments |
|
|
|
(97) |
|
|
|
(142) |
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
|
|
(209) |
|
|
|
(308) |
|
|
|
|
|
|
|
|
|
Exceptional
items |
|
|
|
(890) |
|
|
|
(1'389) |
|
|
|
|
|
|
|
|
|
Tax
impact |
|
|
|
169 |
|
|
|
254 |
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle |
|
|
|
162 |
|
|
|
254 |
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
|
|
(811) |
|
|
|
(1'252) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
allocated capital |
|
9'327 |
483 |
9'624 |
|
13'438 |
701 |
13'864 |
|
|
|
|
|
|
|
|
|
1)
The business unit results reflect the results of the separate segments comprising
the business unit. Certain acquisition-related costs, including acquisition
interest, amortization of retention payments and amortization of acquired
intangible assets and goodwill, exceptional items and cumulative effect
of change in accounting principle not allocated to the segments are included
in the business unit results. The exceptional items are discussed on page
24. Certain other items, including brokerage, execution and clearing expenses
and contractor costs, have been reclassified in the segment and business
unit results and are adjusted at the Corporate Center in accordance with
Swiss GAAP and reflected in the Groups consolidated results. For a
complete reconciliation of the business unit results to the Groups
consolidated results and a discussion of the material reconciling items,
please refer to pages 33-36. |
|
|
|
|
|
|
|
|
|
2)
Excluding tax impact on acquisition-related costs as well as exceptional
items. |
|
|
|
|
|
|
|
|
|
Institutional
Securities income statement
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
USD m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Fixed
Income
2) |
|
587 |
1'103 |
842 |
(47) |
(30) |
4'222 |
5'614 |
(25) |
|
|
|
|
|
|
|
|
|
|
Equity |
|
562 |
718 |
699 |
(22) |
(20) |
2'895 |
3'894 |
(26) |
|
|
|
|
|
|
|
|
|
|
Investment
Banking |
|
813 |
485 |
589 |
68 |
38 |
2'864 |
2'779 |
3 |
|
|
|
|
|
|
|
|
|
|
Other
2) |
|
(85) |
(169) |
30 |
(50) |
|
(286) |
268 |
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
1'877 |
2'137 |
2'160 |
(12) |
(13) |
9'695 |
12'555 |
(23) |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
831 |
1'140 |
901 |
(27) |
(8) |
5'183 |
6'961 |
(26) |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
641 |
613 |
827 |
5 |
(22) |
2'442 |
3'062 |
(20) |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
1'472 |
1'753 |
1'728 |
(16) |
(15) |
7'625 |
10'023 |
(24) |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
405 |
384 |
432 |
5 |
(6) |
2'070 |
2'532 |
(18) |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
81 |
116 |
131 |
(30) |
(38) |
392 |
457 |
(14) |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
664 |
549 |
469 |
21 |
42 |
1'664 |
896 |
86 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before extraordinary and exceptional items,
acquisition-related costs, cumulative effect of change in accounting
principle and taxes |
|
(340) |
(281) |
(168) |
21 |
102 |
14 |
1'179 |
(99) |
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
246 |
0 |
0 |
|
|
262 |
(1) |
|
|
|
|
|
|
|
|
|
|
|
Taxes
3) |
|
157 |
98 |
85 |
60 |
85 |
118 |
(260) |
|
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before exceptional items, acquisition-related
costs, cumulative effect of change in accounting principle and minority
interests (segment result) |
|
63 |
(183) |
(83) |
|
|
394 |
918 |
(57) |
|
|
|
|
|
|
|
|
|
|
1)
Certain reclassifications have been made to conform to the current
presentation. Certain acquisition-related costs, including acquisition
interest, amortization of retention payments and amortization of acquired
intangible assets and goodwill, exceptional items and cumulative effect of
change in accounting principle not allocated to the segments are included
in the business unit results. |
|
|
|
|
|
|
|
|
|
|
2)
Reflects the movement of the results of certain non-continuing real estate
and distressed assets from Fixed Income to Other. |
|
|
|
|
|
|
|
|
|
|
3)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses. If the change in accounting principle had not been adopted in
4Q2002, taxes would have been USD -372 m for 4Q2002. |
|
|
|
|
|
|
|
|
|
|
Institutional
Securities income statement
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Fixed
Income
2) |
|
806 |
1'627 |
1'471 |
(50) |
(45) |
6'586 |
9'488 |
(31) |
|
|
|
|
|
|
|
|
|
|
Equity |
|
806 |
1'062 |
1'213 |
(24) |
(34) |
4'516 |
6'581 |
(31) |
|
|
|
|
|
|
|
|
|
|
Investment
Banking |
|
1'208 |
693 |
1'017 |
74 |
19 |
4'469 |
4'697 |
(5) |
|
|
|
|
|
|
|
|
|
|
Other
2) |
|
(126) |
(268) |
52 |
(53) |
|
(446) |
451 |
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
2'694 |
3'114 |
3'753 |
(13) |
(28) |
15'125 |
21'217 |
(29) |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
1'166 |
1'652 |
1'583 |
(29) |
(26) |
8'086 |
11'764 |
(31) |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
947 |
916 |
1'421 |
3 |
(33) |
3'810 |
5'176 |
(26) |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
2'113 |
2'568 |
3'004 |
(18) |
(30) |
11'896 |
16'940 |
(30) |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
581 |
546 |
749 |
6 |
(22) |
3'229 |
4'277 |
(25) |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
117 |
175 |
224 |
(33) |
(48) |
612 |
772 |
(21) |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
1'006 |
850 |
797 |
18 |
26 |
2'595 |
1'514 |
71 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before extraordinary and exceptional items,
acquisition-related costs, cumulative effect of change in accounting
principle and taxes |
|
(542) |
(479) |
(272) |
13 |
99 |
22 |
1'991 |
(99) |
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
383 |
(1) |
0 |
|
|
408 |
(1) |
|
|
|
|
|
|
|
|
|
|
|
Taxes
3) |
|
247 |
163 |
142 |
52 |
74 |
185 |
(439) |
|
|
|
|
|
|
|
|
|
|
|
Net
operating profit/(loss) before exceptional items, acquisition-related
costs, cumulative effect of change in accounting principle and minority
interests (segment result) |
|
88 |
(317) |
(130) |
|
|
615 |
1'551 |
(60) |
|
|
|
|
|
|
|
|
|
|
1)
Certain reclassifications have been made to conform to the current
presentation. Certain acquisition-related costs, including acquisition
interest, amortization of retention payments and amortization of acquired
intangible assets and goodwill, exceptional items and cumulative effect of
change in accounting principle not allocated to the segments are included
in the business unit results. |
|
|
|
|
|
|
|
|
|
|
2)
Reflects the movement of the results of certain non-continuing real estate
and distressed assets from Fixed Income to Other. |
|
|
|
|
|
|
|
|
|
|
3)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses. If the change in accounting principle had not been adopted in
4Q2002, taxes would have been CHF -579 m for 4Q2002. |
|
|
|
|
|
|
|
|
|
|
Institutional
Securities balance sheet information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
|
|
|
|
|
588'904 |
621'578 |
648'455 |
|
|
|
|
|
|
|
|
|
|
Total
assets in USD m |
|
|
|
|
|
|
423'611 |
416'970 |
387'045 |
|
|
|
|
|
|
|
|
|
|
Due
from banks |
|
|
|
|
|
|
198'511 |
200'921 |
198'806 |
|
|
|
|
|
|
|
|
|
|
of
which securities lending and reverse repurchase agreements |
|
|
|
|
|
|
156'234 |
155'968 |
159'784 |
|
|
|
|
|
|
|
|
|
|
Due
from customers |
|
|
|
|
|
|
114'775 |
122'368 |
118'007 |
|
|
|
|
|
|
|
|
|
|
of
which securities lending and reverse repurchase agreements |
|
|
|
|
|
|
57'435 |
62'105 |
59'806 |
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
|
|
|
|
14'825 |
16'498 |
16'348 |
|
|
|
|
|
|
|
|
|
|
Securities
and precious metals trading portfolios |
|
|
|
|
|
|
163'480 |
171'957 |
204'907 |
|
|
|
|
|
|
|
|
|
|
Due
to banks |
|
|
|
|
|
|
292'449 |
292'418 |
344'091 |
|
|
|
|
|
|
|
|
|
|
of
which securities borrowing and repurchase agreements |
|
|
|
|
|
|
123'017 |
106'551 |
137'731 |
|
|
|
|
|
|
|
|
|
|
Due
to customers, other |
|
|
|
|
|
|
109'980 |
119'100 |
108'470 |
|
|
|
|
|
|
|
|
|
|
of
which securities borrowing and repurchase agreements |
|
|
|
|
|
|
66'864 |
77'435 |
62'136 |
|
|
|
|
|
|
|
|
|
|
Institutional
Securities key information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
months |
|
|
|
|
|
|
|
|
|
|
based
on CHF amounts |
|
|
|
|
4Q2002 |
3Q2002 |
4Q2001 |
2002 |
2001 |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio
1) |
|
|
|
|
82.8% |
88.1% |
86.0% |
82.7% |
83.5% |
|
|
|
|
|
|
|
|
|
|
Average
allocated capital in CHF m |
|
|
|
|
13'438 |
13'906 |
13'936 |
13'814 |
14'829 |
|
|
|
|
|
|
|
|
|
|
Pre-tax
margin
1) |
|
|
|
|
(5.9%) |
(15.4%) |
(7.2%) |
2.8% |
9.4% |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses/operating income
1) |
|
|
|
|
43.3% |
53.1% |
42.2% |
53.5% |
55.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
Number
of employees |
|
|
|
|
|
|
16'524 |
17'728 |
19'094 |
|
|
|
|
|
|
|
|
|
|
1)
Based on the segment results, which exclude certain acquisition-related
costs, exceptional items and cumulative effect of change in accounting
principle not allocated to the segment. |
|
|
|
|
|
|
|
|
|
|
CSFB
Financial Services income statement
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
USD m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
46 |
56 |
61 |
(18) |
(25) |
219 |
318 |
(31) |
|
|
|
|
|
|
|
|
|
|
Net
commission and service fee income |
|
425 |
406 |
476 |
5 |
(11) |
1'716 |
1'893 |
(9) |
|
|
|
|
|
|
|
|
|
|
Net
trading income |
|
19 |
26 |
35 |
(27) |
(46) |
108 |
150 |
(28) |
|
|
|
|
|
|
|
|
|
|
Other
ordinary income |
|
(6) |
13 |
25 |
|
|
31 |
32 |
(3) |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
484 |
501 |
597 |
(3) |
(19) |
2'074 |
2'393 |
(13) |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
237 |
254 |
223 |
(7) |
6 |
1'008 |
1'164 |
(13) |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
161 |
162 |
189 |
(1) |
(15) |
644 |
790 |
(18) |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
398 |
416 |
412 |
(4) |
(3) |
1'652 |
1'954 |
(15) |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
86 |
85 |
185 |
1 |
(54) |
422 |
439 |
(4) |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
26 |
23 |
26 |
13 |
0 |
93 |
105 |
(11) |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
(7) |
11 |
8 |
|
|
15 |
16 |
(6) |
|
|
|
|
|
|
|
|
|
|
Net
operating profit before extraordinary and exceptional items,
acquisition-related costs, cumulative effect of change in accounting
principle and taxes |
|
67 |
51 |
151 |
31 |
(56) |
314 |
318 |
(1) |
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
0 |
0 |
0 |
|
|
0 |
(9) |
|
|
|
|
|
|
|
|
|
|
|
Taxes
2) |
|
(19) |
(14) |
(30) |
36 |
(37) |
(88) |
(50) |
76 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit before exceptional items, acquisition-related costs,
cumulative effect of change in accounting principle and minority interests
(segment result) |
|
48 |
37 |
121 |
30 |
(60) |
226 |
259 |
(13) |
|
|
|
|
|
|
|
|
|
|
1)
Certain reclassifications have been made to conform to the current
presentation. Certain acquisition-related costs, including acquisition
interest, amortization of retention payments and amortization of acquired
intangible assets and goodwill, exceptional items and cumulative effect of
change in accounting principle not allocated to the segments are included
in the business unit results. |
|
|
|
|
|
|
|
|
|
|
2)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses. If the change in accounting principle had not been adopted in
4Q2002, taxes would have been USD -46 m for 4Q2002. |
|
|
|
|
|
|
|
|
|
|
CSFB
Financial Services income statement
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
67 |
84 |
107 |
(20) |
(37) |
342 |
538 |
(36) |
|
|
|
|
|
|
|
|
|
|
Net
commission and service fee income |
|
625 |
600 |
818 |
4 |
(24) |
2'677 |
3'199 |
(16) |
|
|
|
|
|
|
|
|
|
|
Net
trading income |
|
26 |
38 |
60 |
(32) |
(57) |
168 |
254 |
(34) |
|
|
|
|
|
|
|
|
|
|
Other
ordinary income |
|
(11) |
20 |
43 |
|
|
48 |
54 |
(11) |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
707 |
742 |
1'028 |
(5) |
(31) |
3'235 |
4'045 |
(20) |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
346 |
379 |
386 |
(9) |
(10) |
1'572 |
1'967 |
(20) |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
237 |
241 |
326 |
(2) |
(27) |
1'005 |
1'336 |
(25) |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
583 |
620 |
712 |
(6) |
(18) |
2'577 |
3'303 |
(22) |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
124 |
122 |
316 |
2 |
(61) |
658 |
742 |
(11) |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
39 |
34 |
46 |
15 |
(15) |
145 |
179 |
(19) |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
(13) |
17 |
13 |
|
|
23 |
27 |
(15) |
|
|
|
|
|
|
|
|
|
|
Net
operating profit before extraordinary and exceptional items,
acquisition-related costs, cumulative effect of change in accounting
principle and taxes |
|
98 |
71 |
257 |
38 |
(62) |
490 |
536 |
(9) |
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
0 |
0 |
0 |
|
|
0 |
(14) |
|
|
|
|
|
|
|
|
|
|
|
Taxes
2) |
|
(27) |
(20) |
(52) |
35 |
(48) |
(137) |
(85) |
61 |
|
|
|
|
|
|
|
|
|
|
Net
operating profit before exceptional items, acquisition-related costs,
cumulative effect of change in accounting principle and minority interests
(segment result) |
|
71 |
51 |
205 |
39 |
(65) |
353 |
437 |
(19) |
|
|
|
|
|
|
|
|
|
|
1)
Certain reclassifications have been made to conform to the current
presentation. Certain acquisition-related costs, including acquisition
interest, amortization of retention payments and amortization of acquired
intangible assets and goodwill, exceptional items and cumulative effect of
change in accounting principle not allocated to the segments are included
in the business unit results. |
|
|
|
|
|
|
|
|
|
|
2)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating
losses. If the change in accounting principle had not been adopted in
4Q2002, taxes would have been CHF -69 m for 4Q2002. |
|
|
|
|
|
|
|
|
|
|
CSFB
Financial Services key information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
months |
|
|
|
|
|
|
|
|
|
|
based
on CHF amounts |
|
|
|
|
4Q2002 |
3Q2002 |
4Q2001 |
2002 |
2001 |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio
1) |
|
|
|
|
88.0% |
88.1% |
73.7% |
84.1% |
86.1% |
|
|
|
|
|
|
|
|
|
|
Average
allocated capital in CHF m |
|
|
|
|
701 |
984 |
1'072 |
939 |
997 |
|
|
|
|
|
|
|
|
|
|
Pre-tax
margin
1) |
|
|
|
|
13.9% |
9.6% |
25.0% |
15.1% |
12.9% |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses/operating income
1) |
|
|
|
|
48.9% |
51.1% |
37.5% |
48.6% |
48.6% |
|
|
|
|
|
|
|
|
|
|
Net
new assets institutional asset management in CHF bn |
|
|
|
|
(8.7) |
(12.2) |
1.9 |
(31.3) |
9.2 |
|
|
|
|
|
|
|
|
|
|
Net
new assets Private Client Services in CHF bn |
|
|
|
|
2.7 |
|
4.7 |
8.0 |
15.8 |
|
|
|
|
|
|
|
|
|
|
Growth
in assets under management |
|
|
|
|
(2.7%) |
(7.6%) |
16.1% |
(24.0%) |
1.7% |
|
|
|
|
|
|
|
|
|
|
Growth
in discretionary institutional assets under management |
|
|
|
|
(4.6%) |
(9.3%) |
14.6% |
(23.5%) |
1.1% |
|
|
|
|
|
|
|
|
|
|
of
which net new assets |
|
|
|
|
(3.0%) |
(3.8%) |
0.6% |
(8.6%) |
2.6% |
|
|
|
|
|
|
|
|
|
|
of
which market movement and structural effects |
|
|
|
|
(1.6%) |
(5.5%) |
5.8% |
(14.9%) |
(8.8%) |
|
|
|
|
|
|
|
|
|
|
of
which acquisitions/(divestitures) |
|
|
|
|
|
|
8.2% |
|
7.3% |
|
|
|
|
|
|
|
|
|
|
Growth
in net new assets Private Client Services |
|
|
|
|
3.6% |
|
5.3% |
8.2% |
14.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.12.02 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
|
|
|
Assets
under management in CHF bn |
|
|
|
|
|
|
486.5 |
500.2 |
640.5 |
|
|
|
|
|
|
|
|
|
|
of
which institutional asset management |
|
|
|
|
|
|
412.8 |
423.8 |
508.8 |
|
|
|
|
|
|
|
|
|
|
of
which Private Client Services |
|
|
|
|
|
|
71.7 |
74.1 |
97.1 |
|
|
|
|
|
|
|
|
|
|
Discretionary
assets under management in CHF bn |
|
|
|
|
|
|
297.2 |
313.8 |
393.6 |
|
|
|
|
|
|
|
|
|
|
of
which institutional asset management |
|
|
|
|
|
|
278.7 |
292.0 |
364.2 |
|
|
|
|
|
|
|
|
|
|
of
which mutual funds distributed |
|
|
|
|
|
|
106.5 |
108.4 |
132.4 |
|
|
|
|
|
|
|
|
|
|
of
which Private Client Services |
|
|
|
|
|
|
18.5 |
21.7 |
29.4 |
|
|
|
|
|
|
|
|
|
|
Advisory
assets under management in CHF bn |
|
|
|
|
|
|
189.3 |
186.4 |
246.9 |
|
|
|
|
|
|
|
|
|
|
Number
of employees |
|
|
|
|
|
|
6'900 |
7'233 |
8'208 |
|
|
|
|
|
|
|
|
|
|
1)
Based on the segment results, which exclude certain acquisition-related
costs, exceptional items and cumulative effect of change in accounting
principle not allocated to the segment. |
|
|
|
|
|
|
|
|
|
|
RECONCILIATION
OF OPERATING TO CONSOLIDATED RESULTS
Reconciliation
of operating to consolidated results
The
Groups consolidated results are prepared in accordance with Swiss GAAP, while
the Groups segment reporting principles are applied to the presentation of
segment results, including business unit results. The business unit results
reflect the results of the separate segments constituting the respective
business units as well as certain acquisition-related costs, exceptional items
and the cumulative effect of a change in accounting principles that are not
allocated to the segments. The business unit results also include certain other
reclassifications that are adjusted at the Corporate Center in accordance with
Swiss GAAP and reflected in the Groups consolidated results.
The
acquisition-related costs and exceptional items excluded from the segment
results and from the business unit operating basis results shown below include,
among other items, acquisition interest, amortization of retention payments,
amortization of acquired intangible assets and goodwill and the exceptional
items described on page 24 or in the footnotes to the reconciliation tables. The
reclassifications shown for the Credit Suisse Financial Services business unit
reflect the amortization of acquired intangible assets and goodwill, exceptional
items related to the focusing of the European initiative on private banking
clients and the cumulative effect of a change in accounting principles. The
reclassifications shown in the Credit Suisse First Boston business unit reflect
acquisition-related costs, exceptional items and the cumulative effect of a
change in accounting principles. Acquisition-related costs and exceptional items
are excluded from the business unit operating results because management
believes that this enables management and investors to assess the operating
results or cash earnings and key performance indicators of the business.
The effect of the change in accounting principles has been excluded from the
business unit operating results to the extent that the positive current-period
tax benefits resulted from prior-period losses.
The results
presented in the column Adjustments including Corporate Center include the
parent company operations, including Group financing initiatives as well as
income and expense items related to centrally managed, own-use real estate,
mainly comprised of bank premises within Switzerland. In addition, the column
includes consolidation adjustments and adjustments to segment accounts related
to management reporting policies and the reversal of certain reclassifications
made in the business units.
The
adjustments made for the Credit Suisse Financial Services business unit results
include valuation adjustments, provisions and losses. This adjustment reflects
the difference between the expected credit provisions recorded by Credit Suisse
Financial Services banking segments and the actual credit provisions for the
year, and also includes a charge relating to an adjustment in the method of
estimating inherent losses related to lending activities as discussed on page 7.
The impact of this charge, after tax, was fully offset by a release from the
reserve for general banking risks, which was recorded as extraordinary income at
Credit Suisse Group.
The
reclassifications made for the Credit Suisse First Boston business unit results
include, among others, brokerage, execution and clearing expenses and contractor
costs. These reclassifications reflect, among others, the deduction from other
operating expenses of brokerage, execution and clearing expenses of Credit
Suisse First Boston, reclassified as a reduction of operating income; the
deduction from other operating expenses of contractor costs of Credit Suisse
First Boston, reclassified as an addition to personnel expenses; and the
addition to operating income of expenses related to certain redeemable preferred
securities of Credit Suisse First Boston, reclassified as minority interests.
Credit Suisse First Bostons brokerage, execution and clearing expenses and
contractor costs are presented in a manner that brings them in line with its US
competitors in the investment banking industry and makes it easier for investors
to compare the Credit Suisse First Boston business units operating expenses
with those of its competitors. Swiss GAAP does not permit the Group to report
brokerage, execution and clearing expenses and contractor costs as part of other
operating expenses. The presentation of redeemable preferred securities of
Credit Suisse First Boston, issued by consolidated special purpose entities as
an expense reducing its operating income, is intended to more fairly present its
operating results from its core businesses.
|
|
Credit
Suisse Financial Services |
|
Credit
Suisse First Boston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Re- |
|
Re- |
|
|
|
Re- |
|
Re- |
|
Adjust.
incl. |
|
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
classifi- |
|
classified |
|
Operating |
|
classifi- |
|
classified |
|
Corporate |
|
Suisse |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2002,
in CHF m |
|
basis |
|
cations |
|
basis |
|
basis |
|
cations |
|
basis |
|
Center |
|
Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
3'517 |
|
|
|
3'517 |
|
3'401 |
|
(80) |
1) |
3'321 |
|
(443) |
|
6'395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
1'405 |
|
3 |
2) |
1'408 |
|
1'512 |
|
384 |
1)
3) |
1'896 |
|
160 |
|
3'464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
897 |
|
(1) |
2) |
896 |
|
1'184 |
|
|
|
1'184 |
|
(433) |
|
1'647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
2'302 |
|
|
|
2'304 |
|
2'696 |
|
|
|
3'080 |
|
(273) |
|
5'111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
1'215 |
|
|
|
1'213 |
|
705 |
|
|
|
241 |
|
(170) |
|
1'284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
318 |
|
16 |
2) |
334 |
|
156 |
|
|
|
156 |
|
144 |
|
634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
|
|
92 |
2)
4) |
92 |
|
|
|
308 |
1) |
308 |
|
3 |
|
403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
105 |
|
|
|
105 |
|
993 |
|
984 |
3) |
1'977 |
|
342 |
|
2'424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before extraordinary items, cumulative effect of change in accounting
principle and taxes |
|
792 |
|
|
|
682 |
|
(444) |
|
|
|
(2'200) |
|
(659) |
|
(2'177) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
24 |
|
|
|
24 |
|
383 |
|
(163) |
3) |
220 |
|
125 |
|
369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle |
|
|
|
266 |
5) |
266 |
|
|
|
254 |
5) |
254 |
|
0 |
|
520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(332) |
|
14 |
|
(318) |
|
220 |
|
254 |
|
474 |
|
162 |
|
318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
484 |
|
|
|
654 |
|
159 |
|
|
|
(1'252) |
|
(372) |
|
(970) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
|
|
51 |
|
51 |
|
|
|
0 |
|
0 |
|
(31) |
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
|
|
|
|
705 |
|
|
|
|
|
(1'252) |
|
(403) |
|
(950) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Reflects acquisition interest of CHF 80 m allocated to operating income,
amortization of retention payments of CHF 142 m allocated to personnel
expenses and amortization of acquired intangible assets and goodwill of
CHF 308 m. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
Reflects exceptional items totaling CHF 73 m (CHF 60 m net of tax) in
respect of focusing the European initiative on private banking clients
allocated as follows: CHF 3 m to personnel expenses, CHF -1 m to operating
expenses, CHF 16 m to depreciation of non-current assets and CHF 55 m to
amortization of acquired intangible assets and goodwill. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3)
Reflects exceptional items of CHF 1,389 m (CHF 1,269 m net of tax) as
described on page 24 allocated as follows: CHF 242 m to personnel
expenses, CHF 984 m to valuation adjustments, provisions and losses and
CHF 163 m to extraordinary expenses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4)
Reflects acquisition-related costs of CHF 37 m allocated to amortization
of acquired intangible assets and goodwill. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5)
Reflects the cumulative effect of a change in accounting principle related
to the recognition of deferred tax assets on net operating losses for
Credit Suisse Financial Services of CHF 266 m and Credit Suisse First
Boston of CHF 254 m. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
Credit
Suisse First Boston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Re- |
|
Re- |
|
|
|
Re- |
|
Re- |
|
Adjust.
incl. |
|
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
classifi- |
|
classified |
|
Operating |
|
classifi- |
|
classified |
|
Corporate |
|
Suisse |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q2002,
in CHF m |
|
basis |
|
cations |
|
basis |
|
basis |
|
cations |
|
basis |
|
Center |
|
Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
2'289 |
|
|
|
2'289 |
|
3'856 |
|
(99) |
1) |
3'757 |
|
(380) |
|
5'666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
1'443 |
|
47 |
2) |
1'490 |
|
2'031 |
|
148 |
1) |
2'179 |
|
124 |
|
3'793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
845 |
|
39 |
2) |
884 |
|
1'157 |
|
|
|
1'157 |
|
(482) |
|
1'559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
2'288 |
|
|
|
2'374 |
|
3'188 |
|
|
|
3'336 |
|
(358) |
|
5'352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
operating profit/(loss) |
|
1 |
|
|
|
(85) |
|
668 |
|
|
|
421 |
|
(22) |
|
314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
260 |
|
29 |
2) |
289 |
|
209 |
|
|
|
209 |
|
94 |
|
592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
|
|
31 |
2)
3) |
31 |
|
|
|
308 |
1) |
308 |
|
(2) |
|
337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
91 |
|
|
|
91 |
|
867 |
|
|
|
867 |
|
15 |
|
973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before extraordinary items and taxes |
|
(350) |
|
|
|
(496) |
|
(408) |
|
|
|
(963) |
|
(129) |
|
(1'588) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
6 |
|
|
|
6 |
|
(1) |
|
|
|
(1) |
|
(136) |
|
(131) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(693) |
|
1 |
|
(692) |
|
143 |
|
142 |
|
285 |
|
(3) |
|
(410) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
(1'037) |
|
|
|
(1'182) |
|
(266) |
|
|
|
(679) |
|
(268) |
|
(2'129) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
|
|
17 |
|
17 |
|
|
|
0 |
|
0 |
|
(36) |
|
(19) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
|
|
|
|
(1'165) |
|
|
|
|
|
(679) |
|
(304) |
|
(2'148) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Reflects acquisition interest of CHF 99 m allocated to operating income,
amortization of retention payments of CHF 148 m allocated to personnel
expenses and amortization of acquired intangible assets and goodwill of
CHF 308 m. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
Reflects exceptional items totaling CHF 119 m (no tax impact) in respect
of focusing the European initiative on private banking clients allocated
as follows: CHF 47 m to personnel expenses, CHF 39 m to operating
expenses, CHF 29 m to depreciation of non-current assets and CHF 4 m to
amortization of acquired intangible assets and goodwill. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3)
Reflects acquisition-related costs of CHF 27 m allocated to amortization
of acquired intangible assets and goodwill. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
Credit
Suisse First Boston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Re- |
|
Re- |
|
|
|
Re- |
|
Re- |
|
Adjust.
incl. |
|
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
classifi- |
|
classified |
|
Operating |
|
classifi- |
|
classified |
|
Corporate |
|
Suisse |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2001,
in CHF m |
|
basis |
|
cations |
|
basis |
|
basis |
|
cations |
|
basis |
|
Center |
|
Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
3'582 |
|
|
|
3'582 |
|
4'781 |
|
(209) |
1)
2) |
4'572 |
|
7 |
|
8'161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
1'244 |
|
|
|
1'244 |
|
1'969 |
|
1'205 |
1)
2) |
3'174 |
|
207 |
|
4'625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
1'065 |
|
|
|
1'065 |
|
1'747 |
|
|
|
1'747 |
|
(540) |
|
2'272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
2'309 |
|
|
|
2'309 |
|
3'716 |
|
|
|
4'921 |
|
(333) |
|
6'897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
operating profit/(loss) |
|
1'273 |
|
|
|
1'273 |
|
1'065 |
|
|
|
(349) |
|
340 |
|
1'264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
296 |
|
|
|
296 |
|
270 |
|
12 |
1) |
282 |
|
121 |
|
699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
|
|
52 |
3) |
52 |
|
|
|
379 |
2) |
379 |
|
(4) |
|
427 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
48 |
|
|
|
48 |
|
810 |
|
397 |
1) |
1'207 |
|
34 |
|
1'289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before extraordinary items and taxes |
|
929 |
|
|
|
877 |
|
(15) |
|
|
|
(2'217) |
|
189 |
|
(1'151) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
8 |
|
|
|
8 |
|
0 |
|
|
|
0 |
|
(265) |
|
(257) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(151) |
|
1 |
|
(150) |
|
90 |
|
543 |
|
633 |
|
55 |
|
538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
786 |
|
|
|
735 |
|
75 |
|
|
|
(1'584) |
|
(21) |
|
(870) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
|
|
22 |
|
22 |
|
|
|
(1) |
|
(1) |
|
19 |
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
|
|
|
|
757 |
|
|
|
|
|
(1'585) |
|
(2) |
|
(830) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Reflects exceptional items in respect of cost reduction initiatives and a
settlement with the US Securities and Exchange Commission and the National
Association of Securities Dealers Regulation, Inc. (NASDR) of CHF 1,428 m
(CHF 1,092 m net of tax) allocated as follows: CHF -34 m to operating
income, CHF 985 m to personnel expenses, CHF 12 m to depreciation of
non-current assets and CHF 397 m to valuation adjustments, provisions and
losses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
Reflects acquisition interest of CHF 175 m allocated to operating income,
amortization of retention payments of CHF 220 m allocated to personnel
expenses and amortization of acquired intangible assets and goodwill of
CHF 379 m. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3)
Reflects acquisition-related costs of CHF 52 m allocated to amortization
of acquired intangible assets and goodwill. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
Credit
Suisse First Boston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Re- |
|
Re- |
|
|
|
Re- |
|
Re- |
|
Adjust.
incl. |
|
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
classifi- |
|
classified |
|
Operating |
|
classifi- |
|
classified |
|
Corporate |
|
Suisse |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
months 2002, in CHF m |
|
basis |
|
cations |
|
basis |
|
basis |
|
cations |
|
basis |
|
Center |
|
Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
11'830 |
|
|
|
11'830 |
|
18'360 |
|
(504) |
1) |
17'856 |
|
(1'648) |
|
28'038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
5'765 |
|
50 |
2) |
5'815 |
|
9'658 |
|
891 |
1)
3) |
10'549 |
|
546 |
|
16'910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
3'465 |
|
38 |
2) |
3'503 |
|
4'815 |
|
|
|
4'815 |
|
(1'699) |
|
6'619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
9'230 |
|
|
|
9'318 |
|
14'473 |
|
|
|
15'364 |
|
(1'153) |
|
23'529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
2'600 |
|
|
|
2'512 |
|
3'887 |
|
|
|
2'492 |
|
(495) |
|
4'509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
1'000 |
|
45 |
2) |
1'045 |
|
757 |
|
|
|
757 |
|
371 |
|
2'173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
|
|
198 |
2)
4) |
198 |
|
|
|
1'303 |
1) |
1'303 |
|
(2) |
|
1'499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
390 |
|
|
|
390 |
|
2'618 |
|
984 |
3) |
3'602 |
|
438 |
|
4'430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before extraordinary items, cumulative effect of change in accounting
principle and taxes |
|
1'210 |
|
|
|
879 |
|
512 |
|
|
|
(3'170) |
|
(1'302) |
|
(3'593) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
48 |
|
|
|
48 |
|
408 |
|
(163) |
3) |
245 |
|
50 |
|
343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle |
|
|
|
266 |
5) |
266 |
|
|
|
254 |
5) |
254 |
|
0 |
|
520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(1'525) |
|
16 |
|
(1'509) |
|
48 |
|
761 |
|
809 |
|
104 |
|
(596) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
(267) |
|
|
|
(316) |
|
968 |
|
|
|
(1'862) |
|
(1'148) |
|
(3'326) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
|
|
151 |
|
151 |
|
|
|
0 |
|
0 |
|
(134) |
|
17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
|
|
|
|
(165) |
|
|
|
|
|
(1'862) |
|
(1'282) |
|
(3'309) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Reflects acquisition interest of CHF 504 m allocated to operating income,
amortization of retention payments of CHF 649 m allocated to personnel
expenses and amortization of acquired intangible assets and goodwill of
CHF 1,303 m. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
Reflects exceptional items totaling CHF 192 m (CHF 179 m net of tax) in
respect of focusing the European initiative on private banking clients
allocated as follows: CHF 50 m to personnel expenses, CHF 38 m to
operating expenses, CHF 45 m to depreciation of non-current assets and CHF
59 m to amortization of acquired intangible assets and goodwill. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3)
Reflects exceptional items of CHF 1,389 m (CHF 1,269 m net of tax) as
described on page 24 allocated as follows: CHF 242 m to personnel
expenses, CHF 984 m to valuation adjustments, provisions and losses and
CHF 163 m to extraordinary expenses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4)
Reflects acquisition-related costs of CHF 139 m allocated to amortization
of acquired intangible assets and goodwill. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5)
Reflects the cumulative effect of a change in accounting principle related
to the recognition of deferred tax assets on net operating losses for
Credit Suisse Financial Services of CHF 266 m and Credit Suisse First
Boston of CHF 254 m. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Suisse Financial Services |
|
Credit
Suisse First Boston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Re- |
|
Re- |
|
|
|
Re- |
|
Re- |
|
Adjust.
incl. |
|
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
classifi- |
|
classified |
|
Operating |
|
classifi- |
|
classified |
|
Corporate |
|
Suisse |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
months 2001, in CHF m |
|
basis |
|
cations |
|
basis |
|
basis |
|
cations |
|
basis |
|
Center |
|
Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
15'382 |
|
|
|
15'382 |
|
25'262 |
|
(862) |
1)
2) |
24'400 |
|
(628) |
|
39'154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
5'639 |
|
|
|
5'639 |
|
13'731 |
|
1'797 |
1)
2) |
15'528 |
|
723 |
|
21'890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
3'686 |
|
|
|
3'686 |
|
6'512 |
|
|
|
6'512 |
|
(1'804) |
|
8'394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
9'325 |
|
|
|
9'325 |
|
20'243 |
|
|
|
22'040 |
|
(1'081) |
|
30'284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
6'057 |
|
|
|
6'057 |
|
5'019 |
|
|
|
2'360 |
|
453 |
|
8'870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
818 |
|
|
|
818 |
|
951 |
|
12 |
1) |
963 |
|
405 |
|
2'186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets and goodwill |
|
|
|
116 |
3) |
116 |
|
|
|
1'455 |
2) |
1'455 |
|
(8) |
|
1'563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses |
|
383 |
|
|
|
383 |
|
1'541 |
|
397 |
1) |
1'938 |
|
271 |
|
2'592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before extraordinary items and taxes |
|
4'856 |
|
|
|
4'740 |
|
2'527 |
|
|
|
(1'996) |
|
(215) |
|
2'529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extraordinary
income/(expenses), net |
|
25 |
|
|
|
25 |
|
(15) |
|
|
|
(15) |
|
(239) |
|
(229) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(1'113) |
|
2 |
|
(1'111) |
|
(524) |
|
1'148 |
|
624 |
|
1 |
|
(486) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
3'768 |
|
|
|
3'654 |
|
1'988 |
|
|
|
(1'387) |
|
(453) |
|
1'814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
|
|
(69) |
|
(69) |
|
|
|
(1) |
|
(1) |
|
(157) |
|
(227) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
|
|
|
|
3'585 |
|
|
|
|
|
(1'388) |
|
(610) |
|
1'587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Reflects exceptional items in respect of cost reduction initiatives and a
settlement with the US Securities and Exchange Commission and the NASDR of
CHF 1,428 m (CHF 1,092 m net of tax) allocated as follows: CHF -34 m to
operating income, CHF 985 m to personnel expenses, CHF 12 m to
depreciation of non-current assets and CHF 397 m to valuation adjustments,
provisions and losses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
Reflects acquisition interest of CHF 828 m allocated to operating income,
amortization of retention payments of CHF 812 m allocated to personnel
expenses and amortization of acquired intangible assets and goodwill of
CHF 1,455 m. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3)
Reflects acquisition-related costs of CHF 116 m allocated to amortization
of acquired intangible assets and goodwill. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
RESULTS | CREDIT SUISSE GROUP
Consolidated
income statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
Change |
|
|
|
|
|
in
% from |
in
% from |
12
months |
in
% from |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
4Q2002 |
3Q2002 |
4Q2001 |
3Q2002 |
4Q2001 |
2002 |
2001 |
2001 |
|
|
|
|
|
|
|
|
|
|
Interest
and discount income |
|
4'119 |
4'233 |
5'127 |
(3) |
(20) |
17'630 |
28'687 |
(39) |
|
|
|
|
|
|
|
|
|
|
Interest
and dividend income from trading portfolios |
|
2'204 |
2'495 |
3'050 |
(12) |
(28) |
9'957 |
13'078 |
(24) |
|
|
|
|
|
|
|
|
|
|
Interest
and dividend income from financial investments |
|
156 |
298 |
133 |
(48) |
17 |
733 |
514 |
43 |
|
|
|
|
|
|
|
|
|
|
Interest
expenses |
|
(4'553) |
(4'945) |
(6'705) |
(8) |
(32) |
(20'284) |
(35'528) |
(43) |
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
1'926 |
2'081 |
1'605 |
(7) |
20 |
8'036 |
6'751 |
19 |
|
|
|
|
|
|
|
|
|
|
Commission
income from lending activities |
|
313 |
152 |
158 |
106 |
98 |
872 |
780 |
12 |
|
|
|
|
|
|
|
|
|
|
Commission
income from securities and investment transactions |
|
2'899 |
2'925 |
4'108 |
(1) |
(29) |
13'658 |
16'879 |
(19) |
|
|
|
|
|
|
|
|
|
|
Commission
income from other services |
|
334 |
399 |
374 |
(16) |
(11) |
1'649 |
1'421 |
16 |
|
|
|
|
|
|
|
|
|
|
Commission
expenses |
|
(246) |
(174) |
(261) |
41 |
(6) |
(845) |
(965) |
(12) |
|
|
|
|
|
|
|
|
|
|
Net
commission and service fee income |
|
3'300 |
3'302 |
4'379 |
0 |
(25) |
15'334 |
18'115 |
(15) |
|
|
|
|
|
|
|
|
|
|
Net
trading income |
|
109 |
40 |
852 |
173 |
(87) |
2'254 |
8'913 |
(75) |
|
|
|
|
|
|
|
|
|
|
Premiums
earned, net |
|
8'309 |
8'672 |
8'628 |
(4) |
(4) |
34'811 |
32'195 |
8 |
|
|
|
|
|
|
|
|
|
|
Claims
incurred and actuarial provisions |
|
(6'426) |
(6'853) |
(8'375) |
(6) |
(23) |
(28'791) |
(29'731) |
(3) |
|
|
|
|
|
|
|
|
|
|
Commission
expenses, net |
|
(549) |
(708) |
(459) |
(22) |
20 |
(2'276) |
(2'040) |
12 |
|
|
|
|
|
|
|
|
|
|
Investment
income from the insurance business |
|
54 |
(636) |
1'783 |
|
(97) |
(432) |
5'876 |
|
|
|
|
|
|
|
|
|
|
|
Net
income from the insurance business |
|
1'388 |
475 |
1'577 |
192 |
(12) |
3'312 |
6'300 |
(47) |
|
|
|
|
|
|
|
|
|
|
Income
from the sale of financial investments |
|
490 |
381 |
56 |
29 |
|
1'385 |
1'146 |
21 |
|
|
|
|
|
|
|
|
|
|
Income
from investments in associates |
|
(18) |
(1) |
59 |
|
|
65 |
166 |
(61) |
|
|
|
|
|
|
|
|
|
|
Income
from other non-consolidated participations |
|
3 |
2 |
0 |
50 |
|
27 |
24 |
13 |
|
|
|
|
|
|
|
|
|
|
Real
estate income |
|
30 |
76 |
49 |
(61) |
(39) |
194 |
171 |
13 |
|
|
|
|
|
|
|
|
|
|
Sundry
ordinary income |
|
86 |
284 |
461 |
(70) |
(81) |
816 |
1'091 |
(25) |
|
|
|
|
|
|
|
|
|
|
Sundry
ordinary expenses |
|
(919) |
(974) |
(877) |
(6) |
5 |
(3'385) |
(3'523) |
(4) |
|
|
|
|
|
|
|
|
|
|
Other
ordinary income/(expenses), net |
|
(328) |
(232) |
(252) |
41 |
30 |
(898) |
(925) |
(3) |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
6'395 |
5'666 |
8'161 |
13 |
(22) |
28'038 |
39'154 |
(28) |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
3'464 |
3'793 |
4'625 |
(9) |
(25) |
16'910 |
21'890 |
(23) |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
1'647 |
1'559 |
2'272 |
6 |
(28) |
6'619 |
8'394 |
(21) |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
5'111 |
5'352 |
6'897 |
(5) |
(26) |
23'529 |
30'284 |
(22) |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit |
|
1'284 |
314 |
1'264 |
309 |
2 |
4'509 |
8'870 |
(49) |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets
1) |
|
634 |
592 |
699 |
7 |
(9) |
2'173 |
2'186 |
(1) |
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets |
|
165 |
162 |
203 |
2 |
(19) |
693 |
793 |
(13) |
|
|
|
|
|
|
|
|
|
|
Amortization
of goodwill |
|
238 |
175 |
224 |
36 |
6 |
806 |
770 |
5 |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses from the banking business |
|
2'424 |
973 |
1'289 |
149 |
88 |
4'430 |
2'592 |
71 |
|
|
|
|
|
|
|
|
|
|
Depreciation,
valuation adjustments and losses |
|
3'461 |
1'902 |
2'415 |
82 |
43 |
8'102 |
6'341 |
28 |
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before extraordinary items, cumulative effect of change in accounting
principle and taxes |
|
(2'177) |
(1'588) |
(1'151) |
37 |
89 |
(3'593) |
2'529 |
|
|
|
|
|
|
|
|
|
|
|
Extraordinary
income |
|
626 |
(5) |
(7) |
|
|
746 |
52 |
|
|
|
|
|
|
|
|
|
|
|
Extraordinary
expenses |
|
(257) |
(126) |
(250) |
104 |
3 |
(403) |
(281) |
43 |
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle
2) |
|
520 |
|
|
|
|
520 |
|
|
|
|
|
|
|
|
|
|
|
|
Taxes
2) |
|
318 |
(410) |
538 |
|
(41) |
(596) |
(486) |
23 |
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
(970) |
(2'129) |
(870) |
(54) |
11 |
(3'326) |
1'814 |
|
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
20 |
(19) |
40 |
|
(50) |
17 |
(227) |
|
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
(950) |
(2'148) |
(830) |
(56) |
14 |
(3'309) |
1'587 |
|
|
|
|
|
|
|
|
|
|
|
Certain
reclassifications have been made to conform to the current presentation. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Includes amortization of Present Value of Future Profits (PVFP) from the
insurance business. |
|
|
|
|
|
|
|
|
|
|
2)
In 4Q2002, Credit Suisse Group adopted a change in accounting principle
relating to the recognition of deferred tax assets on net operating losses.
If the change in accounting principle had not been adopted in 4Q2002, taxes
would have been CHF -1,023 m for 4Q2002. The retroactive application of
this change in accounting principle would have resulted in taxes for Q42002,
3Q2002 and 4Q2001 of CHF -198 m, CHF -306 m and CHF 755 m, respectively,
and CHF -250 m for the 12 months 2001. |
|
|
|
|
|
|
|
|
|
|
Consolidated
balance sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change |
Change |
|
|
|
|
|
|
|
|
|
|
|
|
in
% from |
in
% from |
|
|
|
|
|
|
|
in
CHF m |
|
31.12.02 |
30.09.02 |
31.12.01 |
30.09.02 |
31.12.01 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and other liquid assets |
|
2'551 |
3'386 |
3'092 |
(25) |
(17) |
|
|
|
|
|
|
|
Money
market papers |
|
25'125 |
24'621 |
32'027 |
2 |
(22) |
|
|
|
|
|
|
|
Due
from banks |
|
195'778 |
201'045 |
203'785 |
(3) |
(4) |
|
|
|
|
|
|
|
Receivables
from the insurance business |
|
12'290 |
9'932 |
11'823 |
24 |
4 |
|
|
|
|
|
|
|
Due
from customers |
|
182'143 |
195'762 |
186'151 |
(7) |
(2) |
|
|
|
|
|
|
|
Mortgages |
|
94'896 |
96'187 |
92'655 |
(1) |
2 |
|
|
|
|
|
|
|
Securities
and precious metals trading portfolios |
|
173'133 |
179'645 |
208'374 |
(4) |
(17) |
|
|
|
|
|
|
|
Financial
investments from the banking business |
|
33'394 |
37'007 |
37'306 |
(10) |
(10) |
|
|
|
|
|
|
|
Investments
from the insurance business |
|
128'450 |
134'129 |
131'291 |
(4) |
(2) |
|
|
|
|
|
|
|
Non-consolidated
participations |
|
1'792 |
1'632 |
1'846 |
10 |
(3) |
|
|
|
|
|
|
|
Tangible
fixed assets |
|
8'152 |
8'683 |
9'422 |
(6) |
(13) |
|
|
|
|
|
|
|
Intangible
assets |
|
18'359 |
19'579 |
22'850 |
(6) |
(20) |
|
|
|
|
|
|
|
Accrued
income and prepaid expenses |
|
13'882 |
15'899 |
18'095 |
(13) |
(23) |
|
|
|
|
|
|
|
Other
assets |
|
65'711 |
71'651 |
63'796 |
(8) |
3 |
|
|
|
|
|
|
|
Total
assets |
|
955'656 |
999'158 |
1'022'513 |
(4) |
(7) |
|
|
|
|
|
|
|
Subordinated
assets |
|
2'678 |
2'496 |
1'578 |
7 |
70 |
|
|
|
|
|
|
|
Receivables
due from non-consolidated participations |
|
728 |
850 |
276 |
(14) |
164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Money
market papers issued |
|
22'178 |
19'876 |
19'252 |
12 |
15 |
|
|
|
|
|
|
|
Due
to banks |
|
287'884 |
293'456 |
335'932 |
(2) |
(14) |
|
|
|
|
|
|
|
Payables
from the insurance business |
|
10'218 |
7'250 |
11'864 |
41 |
(14) |
|
|
|
|
|
|
|
Due
to customers in savings and investment deposits |
|
39'739 |
39'397 |
38'547 |
1 |
3 |
|
|
|
|
|
|
|
Due
to customers, other |
|
258'244 |
277'046 |
261'752 |
(7) |
(1) |
|
|
|
|
|
|
|
Medium-term
notes (cash bonds) |
|
2'599 |
2'831 |
3'019 |
(8) |
(14) |
|
|
|
|
|
|
|
Bonds
and mortgage-backed bonds |
|
81'839 |
89'644 |
81'505 |
(9) |
0 |
|
|
|
|
|
|
|
Accrued
expenses and deferred income |
|
17'463 |
18'826 |
25'512 |
(7) |
(32) |
|
|
|
|
|
|
|
Other
liabilities |
|
56'070 |
68'793 |
56'493 |
(18) |
(1) |
|
|
|
|
|
|
|
Valuation
adjustments and provisions |
|
11'557 |
9'956 |
11'362 |
16 |
2 |
|
|
|
|
|
|
|
Technical
provisions for the insurance business |
|
136'471 |
139'622 |
138'354 |
(2) |
(1) |
|
|
|
|
|
|
|
Total
liabilities |
|
924'262 |
966'697 |
983'592 |
(4) |
(6) |
|
|
|
|
|
|
|
Reserve
for general banking risks |
|
1'739 |
2'319 |
2'319 |
(25) |
(25) |
|
|
|
|
|
|
|
Share
capital |
|
1'190 |
1'189 |
3'590 |
0 |
(67) |
|
|
|
|
|
|
|
Capital
reserve |
|
20'710 |
19'460 |
19'446 |
6 |
7 |
|
|
|
|
|
|
|
Revaluation
reserves for the insurance business |
|
1'504 |
1'285 |
749 |
17 |
101 |
|
|
|
|
|
|
|
Reserve
for own shares |
|
1'950 |
1'950 |
2'469 |
0 |
(21) |
|
|
|
|
|
|
|
Retained
earnings |
|
4'732 |
5'546 |
5'640 |
(15) |
(16) |
|
|
|
|
|
|
|
Minority
interests |
|
2'878 |
3'071 |
3'121 |
(6) |
(8) |
|
|
|
|
|
|
|
Net
profit/(loss) |
|
(3'309) |
(2'359) |
1'587 |
40 |
|
|
|
|
|
|
|
|
Total
shareholders equity |
|
31'394 |
32'461 |
38'921 |
(3) |
(19) |
|
|
|
|
|
|
|
Total
liabilities and shareholders equity |
|
955'656 |
999'158 |
1'022'513 |
(4) |
(7) |
|
|
|
|
|
|
|
Subordinated
liabilities |
|
19'704 |
20'700 |
20'892 |
(5) |
(6) |
|
|
|
|
|
|
|
Liabilities
due to non-consolidated participations |
|
1'164 |
1'371 |
1'098 |
(15) |
6 |
|
|
|
|
|
|
|
Off-balance
sheet and fiduciary business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
|
|
|
|
|
|
31.12.02 |
|
31.12.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
guarantees in form of bills of exchange and other guarantees
1) |
|
|
|
|
|
|
|
|
|
|
27'745 |
|
29'789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bid
bonds, delivery and performance bonds, letters of indemnity, other
performance-related guarantees |
|
|
|
|
|
|
|
|
|
|
4'680 |
|
5'056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Irrevocable
commitments in respect of documentary credits |
|
|
|
|
|
|
|
|
|
|
3'242 |
|
3'257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
contingent liabilities |
|
|
|
|
|
|
|
|
|
|
3'437 |
|
5'484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contingent
liabilities |
|
|
|
|
|
|
|
|
|
|
39'104 |
|
43'586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Irrevocable
commitments |
|
|
|
|
|
|
|
|
|
|
86'051 |
|
129'864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
for calls on shares and other equity instruments |
|
|
|
|
|
|
|
|
|
|
543 |
|
794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Confirmed
credits |
|
|
|
|
|
|
|
|
|
|
32 |
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
off-balance sheet |
|
|
|
|
|
|
|
|
|
|
125'730 |
|
174'320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiduciary
transactions |
|
|
|
|
|
|
|
|
|
|
37'703 |
|
41'448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
31.12.02, market value guarantees reported as derivatives totaled CHF
170.4 bn (nominal value). The associated replacement value reported
on-balance sheet totaled CHF 10.3 bn. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Including credit guarantees of securities lent as arranger: 31.12.02: CHF
20.7 bn (31.12.01: CHF 21.1 bn). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative
instruments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Positive |
|
Negative |
|
|
Positive |
|
Negative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
gross |
|
gross |
|
|
gross |
|
gross |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nominal |
replacement |
|
replacement |
|
Nominal |
replacement |
|
replacement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
value |
value |
1) |
value |
1) |
value |
value |
1) |
value |
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF bn |
|
|
|
|
31.12.02 |
31.12.02 |
|
31.12.02 |
|
31.12.01 |
31.12.01 |
|
31.12.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate products |
|
|
|
|
10'647.2 |
185.4 |
|
181.0 |
|
9'120.8 |
97.0 |
|
98.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange products |
|
|
|
|
1'376.7 |
34.8 |
|
36.1 |
|
1'936.3 |
39.6 |
|
40.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Precious
metals products |
|
|
|
|
19.8 |
0.9 |
|
2.5 |
|
29.5 |
1.3 |
|
1.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity/index-related
products |
|
|
|
|
347.5 |
12.6 |
|
13.0 |
|
393.9 |
14.1 |
|
13.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
products |
|
|
|
|
179.4 |
4.3 |
|
5.0 |
|
120.7 |
3.5 |
|
3.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
derivative instruments |
|
|
|
|
12'570.6 |
238.0 |
|
237.6 |
|
11'601.2 |
155.5 |
|
157.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Including replacement values for traded derivatives (futures and traded
options) subject to daily margining requirements. Total positive and
negative replacement values of traded derivatives amount to CHF 1.5 bn
(31.12.01: CHF 1.8 bn) and CHF 1.1 bn (31.12.01: CHF 0.6 bn). |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency
translation rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
rate year-to-date |
|
Closing
rate used in the |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
used
in the income statement |
|
balance
sheet as of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF |
|
|
|
|
4Q2002 |
3Q2002 |
|
4Q2001 |
|
31.12.02 |
30.09.02 |
|
31.12.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
USD |
|
|
|
|
1.56 |
1.59 |
|
1.69 |
|
1.3902 |
1.4907 |
|
1.6754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
EUR |
|
|
|
|
1.47 |
1.47 |
|
1.51 |
|
1.4550 |
1.4646 |
|
1.4824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
GBP |
|
|
|
|
2.33 |
2.34 |
|
2.43 |
|
2.2357 |
2.3308 |
|
2.4282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100
JPY |
|
|
|
|
1.24 |
1.26 |
|
1.39 |
|
1.1722 |
1.2257 |
|
1.2759 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation
of earnings per share (EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
Change |
|
Change |
|
|
|
|
Change |
|
|
|
|
|
|
in
% from |
|
in
% from |
|
12
months |
|
in
% from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q2002 |
3Q2002 |
|
4Q2001 |
3Q2002 |
|
4Q2001 |
|
2002 |
2001 |
|
2001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit in CHF m |
|
(950) |
(2'148) |
|
(830) |
(56) |
|
14 |
|
(3'309) |
1'587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
net profit in CHF m |
|
(951) |
(2'148) |
|
(830) |
(56) |
|
15 |
|
(3'309) |
1'588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding
1) |
|
1'193'153'538 |
1'189'341'056 |
|
1'188'677'445 |
0 |
|
0 |
|
1'190'206'207 |
1'194'090'788 |
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive
impact
2) |
|
253'011 |
544'427 |
|
7'213'154 |
(54) |
|
(96) |
|
3'337'199 |
9'356'766 |
|
(64) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares, diluted |
|
1'193'406'549 |
1'189'885'483 |
|
1'195'890'599 |
0 |
|
0 |
|
1'193'543'406 |
1'203'447'554 |
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share in CHF |
|
(0.80) |
(1.81) |
|
(0.70) |
(56) |
|
14 |
|
(2.78) |
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share in CHF |
|
(0.80) |
(1.81) |
|
(0.69) |
(56) |
|
16 |
|
(2.77) |
1.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Adjusted for weighted average shares repurchased. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2)
From convertible bonds and outstanding options. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
statement of the banking and insurance business
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking
business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(incl.
Corporate Center) |
|
Insurance
business |
2) |
Credit
Suisse Group |
|
|
|
|
|
|
|
|
|
|
12
months, in CHF m |
|
2002 |
2001 |
|
2002 |
2001 |
|
2002 |
2001 |
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
7'984 |
6'680 |
|
|
|
|
8'036 |
6'751 |
|
|
|
|
|
|
|
|
|
|
Net
commission and service fee income |
|
15'350 |
18'136 |
|
|
|
|
15'334 |
18'115 |
|
|
|
|
|
|
|
|
|
|
Net
trading income |
|
1'946 |
8'913 |
|
|
|
|
2'254 |
8'913 |
|
|
|
|
|
|
|
|
|
|
Net
income from the insurance business
3) |
|
|
|
|
3'641 |
6'352 |
|
3'312 |
6'300 |
|
|
|
|
|
|
|
|
|
|
Other
ordinary income/(expenses), net |
|
(296) |
(538) |
|
(602) |
(380) |
|
(898) |
(925) |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
24'984 |
33'191 |
|
3'039 |
5'972 |
|
28'038 |
39'154 |
|
|
|
|
|
|
|
|
|
|
Personnel
expenses |
|
14'627 |
19'752 |
|
2'283 |
2'138 |
|
16'910 |
21'890 |
|
|
|
|
|
|
|
|
|
|
Other
operating expenses |
|
5'118 |
6'853 |
|
1'499 |
1'547 |
|
6'619 |
8'394 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
19'745 |
26'605 |
|
3'782 |
3'685 |
|
23'529 |
30'284 |
|
|
|
|
|
|
|
|
|
|
Gross
operating profit/(loss) |
|
5'239 |
6'586 |
|
(743) |
2'287 |
|
4'509 |
8'870 |
|
|
|
|
|
|
|
|
|
|
Depreciation
of non-current assets |
|
1'515 |
1'667 |
|
657 |
519 |
|
2'173 |
2'186 |
|
|
|
|
|
|
|
|
|
|
Amortization
of acquired intangible assets |
|
693 |
793 |
|
0 |
0 |
|
693 |
793 |
|
|
|
|
|
|
|
|
|
|
Amortization
of goodwill |
|
740 |
697 |
|
66 |
73 |
|
806 |
770 |
|
|
|
|
|
|
|
|
|
|
Valuation
adjustments, provisions and losses from the banking business |
|
4'430 |
2'592 |
|
|
|
|
4'430 |
2'592 |
|
|
|
|
|
|
|
|
|
|
Depreciation,
valuation adjustments and losses |
|
7'378 |
5'749 |
|
723 |
592 |
|
8'102 |
6'341 |
|
|
|
|
|
|
|
|
|
|
Profit/(loss)
before extraordinary items, taxes and minority interests |
|
(2'139) |
837 |
|
(1'466) |
1'695 |
|
(3'593) |
2'529 |
|
|
|
|
|
|
|
|
|
|
Extraordinary
income |
|
681 |
52 |
|
65 |
0 |
|
746 |
52 |
|
|
|
|
|
|
|
|
|
|
Extraordinary
expenses |
|
(206) |
(50) |
|
(197) |
(231) |
|
(403) |
(281) |
|
|
|
|
|
|
|
|
|
|
Cumulative
effect of change in accounting principle |
|
320 |
|
|
200 |
|
|
520 |
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
289 |
(108) |
|
(885) |
(378) |
|
(596) |
(486) |
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) before minority interests |
|
(1'055) |
731 |
|
(2'283) |
1'086 |
|
(3'326) |
1'814 |
|
|
|
|
|
|
|
|
|
|
Minority
interests |
|
(151) |
(179) |
|
168 |
(48) |
|
17 |
(227) |
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
(1'206) |
552 |
|
(2'115) |
1'038 |
|
(3'309) |
1'587 |
|
|
|
|
|
|
|
|
|
|
1)
Income statements for the banking and insurance business are presented on
a stand-alone basis. |
|
|
|
|
|
|
|
|
|
|
2)
Represents «Winterthur» Swiss Insurance Company |
|
|
|
|
|
|
|
|
|
|
3)
Insurance business: expenses due to the handling of both claims and
investments are allocated to the income from the insurance business, of
which CHF 615 m (2001: CHF 599 m) are related to personnel expenses and
CHF 469 m (2001: CHF 371 m) to other operating expenses. |
|
|
|
|
|
|
|
|
|
|
Statement
of shareholders equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
months |
12
months |
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
|
|
|
2002 |
2001 |
|
|
|
|
|
|
|
|
|
|
At
beginning of financial year |
|
|
|
|
|
|
|
38'921 |
43'522 |
|
|
|
|
|
|
|
|
|
|
Repayment
out of share capital |
|
|
|
|
|
|
|
(2'379) |
(2'392) |
|
|
|
|
|
|
|
|
|
|
Dividends
paid |
|
|
|
|
|
|
|
0 |
(14) |
|
|
|
|
|
|
|
|
|
|
Dividends
paid to minority interests |
|
|
|
|
|
|
|
(169) |
(161) |
|
|
|
|
|
|
|
|
|
|
Capital
increases, par value and capital surplus
1) |
|
|
|
|
|
|
|
1'448 |
1'160 |
|
|
|
|
|
|
|
|
|
|
Cancellation
of repurchased shares |
|
|
|
|
|
|
|
(542) |
(569) |
|
|
|
|
|
|
|
|
|
|
Changes
in scope of consolidation affecting minority interests |
|
|
|
|
|
|
|
(167) |
(253) |
|
|
|
|
|
|
|
|
|
|
Foreign
exchange impact |
|
|
|
|
|
|
|
(2'626) |
112 |
|
|
|
|
|
|
|
|
|
|
Change
in revaluation reserves from the insurance business, net |
|
|
|
|
|
|
|
814 |
(4'298) |
|
|
|
|
|
|
|
|
|
|
Change
in reserve for general banking risks, net |
|
|
|
|
|
|
|
(580) |
0 |
|
|
|
|
|
|
|
|
|
|
Minority
interests in net profit/(loss) |
|
|
|
|
|
|
|
(17) |
227 |
|
|
|
|
|
|
|
|
|
|
Net
profit/(loss) |
|
|
|
|
|
|
|
(3'309) |
1'587 |
|
|
|
|
|
|
|
|
|
|
At
end of financial year |
|
|
|
|
|
|
|
31'394 |
38'921 |
|
|
|
|
|
|
|
|
|
|
1)
Includes CHF 1.25 bn proceeds related to Mandatory Convertible Securities
issued by Credit Suisse Group Finance (Guernsey) Ltd. |
|
|
|
|
|
|
|
|
|
|
LOANS
Due
from banks |
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
31.12.02 |
31.12.01 |
|
|
|
|
|
|
|
Due
from banks, gross |
|
|
|
|
195'866 |
203'821 |
|
|
|
|
|
|
|
Valuation
allowance |
|
|
|
|
(88) |
(36) |
|
|
|
|
|
|
|
Total
due from banks, net |
|
|
|
|
195'778 |
203'785 |
|
|
|
|
|
|
|
Due
from customers and mortgages |
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
31.12.02 |
31.12.01 |
|
|
|
|
|
|
|
Due
from customers, gross |
|
|
|
|
187'617 |
192'349 |
|
|
|
|
|
|
|
Valuation
allowance |
|
|
|
|
(5'474) |
(6'198) |
|
|
|
|
|
|
|
Due
from customers, net |
|
|
|
|
182'143 |
186'151 |
|
|
|
|
|
|
|
Mortgages,
gross |
|
|
|
|
97'037 |
95'685 |
|
|
|
|
|
|
|
Valuation
allowance |
|
|
|
|
(2'141) |
(3'030) |
|
|
|
|
|
|
|
Mortgages,
net |
|
|
|
|
94'896 |
92'655 |
|
|
|
|
|
|
|
Total
due from customers and mortgages, net |
|
|
|
|
277'039 |
278'806 |
|
|
|
|
|
|
|
Due
from customers and mortgages by sector |
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
31.12.02 |
31.12.01 |
|
|
|
|
|
|
|
Financial
services |
|
|
|
|
38'279 |
39'213 |
|
|
|
|
|
|
|
Real
estate companies |
|
|
|
|
16'472 |
17'627 |
|
|
|
|
|
|
|
Other
services including technology companies |
|
|
|
|
15'316 |
22'860 |
|
|
|
|
|
|
|
Manufacturing |
|
|
|
|
13'273 |
12'791 |
|
|
|
|
|
|
|
Wholesale
and retail trade |
|
|
|
|
11'165 |
10'970 |
|
|
|
|
|
|
|
Construction |
|
|
|
|
4'314 |
3'676 |
|
|
|
|
|
|
|
Transportation
and communication |
|
|
|
|
6'482 |
10'904 |
|
|
|
|
|
|
|
Health
and social services |
|
|
|
|
2'340 |
1'854 |
|
|
|
|
|
|
|
Hotels
and restaurants |
|
|
|
|
2'390 |
2'866 |
|
|
|
|
|
|
|
Agriculture
and mining |
|
|
|
|
2'317 |
1'600 |
|
|
|
|
|
|
|
Non-profit
and international organizations |
|
|
|
|
191 |
27 |
|
|
|
|
|
|
|
Commercial |
|
|
|
|
112'539 |
124'388 |
|
|
|
|
|
|
|
Consumers |
|
|
|
|
92'419 |
86'358 |
|
|
|
|
|
|
|
Public
authorities |
|
|
|
|
5'023 |
5'000 |
|
|
|
|
|
|
|
Lease
financings |
|
|
|
|
3'158 |
3'135 |
|
|
|
|
|
|
|
Professional
securities transactions and securitized loans |
|
|
|
|
71'515 |
69'153 |
|
|
|
|
|
|
|
Due
from customers and mortgages, gross |
|
|
|
|
284'654 |
288'034 |
|
|
|
|
|
|
|
Valuation
allowance |
|
|
|
|
(7'615) |
(9'228) |
|
|
|
|
|
|
|
Total
due from customers and mortgages, net |
|
|
|
|
277'039 |
278'806 |
|
|
|
|
|
|
|
Collateral
of due from customers and mortgages |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage |
Other |
Without |
Total |
|
|
|
|
|
|
|
in
CHF m |
|
|
collateral |
collateral |
collateral |
31.12.02 |
|
|
|
|
|
|
|
Due
from customers |
|
|
5'106 |
129'300 |
47'737 |
182'143 |
|
|
|
|
|
|
|
Residential
properties |
|
|
68'055 |
|
|
|
|
|
|
|
|
|
|
Business
and office properties |
|
|
11'857 |
|
|
|
|
|
|
|
|
|
|
Commercial
and industrial properties |
|
|
10'970 |
|
|
|
|
|
|
|
|
|
|
Other
properties |
|
|
4'014 |
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
94'896 |
|
|
94'896 |
|
|
|
|
|
|
|
Total
collateral |
|
|
100'002 |
129'300 |
47'737 |
277'039 |
|
|
|
|
|
|
|
As
of 31.12.01 |
|
|
98'557 |
121'338 |
58'911 |
278'806 |
|
|
|
|
|
|
|
CONSOLIDATED
RESULTS | CREDIT SUISSE GROUP
Loan
valuation allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
31.12.02 |
31.12.01 |
|
|
|
|
|
|
|
Due
from banks |
|
|
|
|
88 |
36 |
|
|
|
|
|
|
|
Due
from customers |
|
|
|
|
5'474 |
6'198 |
|
|
|
|
|
|
|
Mortgages |
|
|
|
|
2'141 |
3'030 |
|
|
|
|
|
|
|
Total
loans valuation allowance |
|
|
|
|
7'703 |
9'264 |
|
|
|
|
|
|
|
of
which on principal |
|
|
|
|
6'617 |
7'553 |
|
|
|
|
|
|
|
of
which on interest |
|
|
|
|
1'086 |
1'711 |
|
|
|
|
|
|
|
Roll
forward of loan valuation allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
31.12.02 |
31.12.01 |
|
|
|
|
|
|
|
At
beginning of financial year |
|
|
|
|
9'264 |
10'786 |
|
|
|
|
|
|
|
Net
additions charged to income statement |
|
|
|
|
2'616 |
1'613 |
|
|
|
|
|
|
|
Net
write-offs |
|
|
|
|
(3'803) |
(3'805) |
|
|
|
|
|
|
|
Balances
acquired/(sold) |
|
|
|
|
0 |
(3) |
|
|
|
|
|
|
|
Provisions
for interest |
|
|
|
|
187 |
400 |
|
|
|
|
|
|
|
Foreign
currency translation impact and other |
|
|
|
|
(561) |
273 |
|
|
|
|
|
|
|
At
end of financial year |
|
|
|
|
7'703 |
9'264 |
|
|
|
|
|
|
|
Impaired
loans
1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
31.12.02 |
31.12.01 |
|
|
|
|
|
|
|
With
a specific allowance |
|
|
|
|
11'714 |
14'654 |
|
|
|
|
|
|
|
Without
a specific allowance |
|
|
|
|
655 |
911 |
|
|
|
|
|
|
|
Total
impaired loans, gross |
|
|
|
|
12'369 |
15'565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing
loans |
|
|
|
|
6'355 |
7'960 |
|
|
|
|
|
|
|
Non-interest
earning loans |
|
|
|
|
2'325 |
2'808 |
|
|
|
|
|
|
|
Restructured
loans |
|
|
|
|
281 |
114 |
|
|
|
|
|
|
|
Potential
problem loans
2) |
|
|
|
|
3'408 |
4'683 |
|
|
|
|
|
|
|
Total
impaired loans, gross |
|
|
|
|
12'369 |
15'565 |
|
|
|
|
|
|
|
1)
31.12.01 restated. |
|
|
|
|
|
|
|
2)
Potential problem loans consist of loans where interest payments are being
made but where, in the credit officer's assessment, some doubt exists as
to the timing and/or certainty of the repayment of contractual principal. |
|
|
|
|
|
|
|
Securities
and precious metals trading portfolios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
CHF m |
|
|
|
|
31.12.02 |
31.12.01 |
|
|
|
|
|
|
|
Listed
on stock exchange |
|
|
|
|
58'661 |
66'308 |
|
|
|
|
|
|
|
Unlisted |
|
|
|
|
76'083 |
91'434 |
|
|
|
|
|
|
|
Debt
instruments |
|
|
|
|
134'744 |
157'742 |
|
|
|
|
|
|
|
of
which own bonds and medium-term notes |
|
|
|
|
1'520 |
1'037 |
|
|
|
|
|
|
|
Listed
on stock exchange |
|
|
|
|
33'208 |
44'202 |
|
|
|
|
|
|
|
Unlisted |
|
|
|
|
3'935 |
5'123 |
|
|
|
|
|
|
|
Equity
instruments |
|
|
|
|
37'143 |
49'325 |
|
|
|
|
|
|
|
of
which own shares |
|
|
|
|
2'254 |
4'410 |
|
|
|
|
|
|
|
Precious
metals |
|
|
|
|
1'246 |
1'307 |
|
|
|
|
|
|
|
Total
securities and precious metals trading portfolios |
|
|
|
|
173'133 |
208'374 |
|
|
|
|
|
|
|
of
which securities rediscountable or pledgeable with central banks |
|
|
|
|
27'426 |
40'782 |
|
|
|
|
|
|
|
Investments
from the insurance business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
Gross |
|
|
|
|
|
|
|
|
|
Amortized |
unrealized |
unrealized |
|
|
|
|
|
|
|
As
of 31.12.02, in CHF m |
Book
value |
cost |
gains |
losses |
Fair
value |
|
|
|
|
|
|
Debt
securities issued by Swiss Federal Government, cantonal or local
governmental entities |
10'974 |
10'269 |
715 |
10 |
10'974 |
|
|
|
|
|
|
Debt
securities issued by foreign governments |
27'094 |
26'303 |
879 |
88 |
27'094 |
|
|
|
|
|
|
Corporate
debt securities |
22'517 |
21'210 |
1'399 |
92 |
22'517 |
|
|
|
|
|
|
Other |
16'066 |
15'141 |
1'010 |
85 |
16'066 |
|
|
|
|
|
|
Debt
securities |
76'651 |
72'923 |
4'003 |
275 |
76'651 |
|
|
|
|
|
|
Equity
securities |
9'052 |
9'171 |
336 |
455 |
9'052 |
|
|
|
|
|
|
Total
securities available-for-sale |
85'703 |
82'094 |
4'339 |
730 |
85'703 |
|
|
|
|
|
|
Debt
securities |
246 |
|
|
|
|
|
|
|
|
|
|
Equity
securities |
31 |
|
|
|
|
|
|
|
|
|
|
Total
securities trading |
277 |
|
|
|
|
|
|
|
|
|
|
Own
shares |
44 |
|
|
|
|
|
|
|
|
|
|
Mortgage
loans |
10'175 |
|
|
|
|
|
|
|
|
|
|
Other
loans |
4'305 |
|
|
|
|
|
|
|
|
|
|
Real
estate |
7'431 |
|
|
|
10'057 |
|
|
|
|
|
|
Short-term
investments and other |
7'120 |
|
|
|
|
|
|
|
|
|
|
Investments
from the insurance business |
115'055 |
|
|
|
|
|
|
|
|
|
|
Equity
securities |
9'288 |
|
|
|
|
|
|
|
|
|
|
Debt
securities |
2'841 |
|
|
|
|
|
|
|
|
|
|
Short-term
investments and other |
1'069 |
|
|
|
|
|
|
|
|
|
|
Real
estate |
197 |
|
|
|
|
|
|
|
|
|
|
Investments
where the investment risk is borne by the policyholder |
13'395 |
|
|
|
|
|
|
|
|
|
|
Investments
from the insurance business |
128'450 |
|
|
|
|
|
|
|
|
|
|
Investments
from the insurance business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
Gross |
|
|
|
|
|
|
|
|
|
Amortized |
unrealized |
unrealized |
|
|
|
|
|
|
|
As
of 31.12.01, in CHF m |
Book
value |
cost |
gains |
losses |
Fair
value |
|
|
|
|
|
|
Debt
securities issued by Swiss Federal Government, cantonal or local
governmental entities |
8'287 |
8'205 |
152 |
70 |
8'287 |
|
|
|
|
|
|
Debt
securities issued by foreign governments |
19'503 |
19'252 |
474 |
223 |
19'503 |
|
|
|
|
|
|
Corporate
debt securities |
22'947 |
22'542 |
672 |
267 |
22'947 |
|
|
|
|
|
|
Other |
15'823 |
15'409 |
543 |
129 |
15'823 |
|
|
|
|
|
|
Debt
securities |
66'560 |
65'408 |
1'841 |
689 |
66'560 |
|
|
|
|
|
|
Equity
securities |
22'332 |
22'145 |
2'406 |
2'219 |
22'332 |
|
|
|
|
|
|
Total
securities available-for-sale |
88'892 |
87'553 |
4'247 |
2'908 |
88'892 |
|
|
|
|
|
|
Debt
securities |
1'858 |
|
|
|
|
|
|
|
|
|
|
Equity
securities |
37 |
|
|
|
|
|
|
|
|
|
|
Total
securities trading |
1'895 |
|
|
|
|
|
|
|
|
|
|
Own
shares |
184 |
|
|
|
|
|
|
|
|
|
|
Mortgage
loans |
9'811 |
|
|
|
|
|
|
|
|
|
|
Other
loans |
4'648 |
|
|
|
|
|
|
|
|
|
|
Real
estate |
7'549 |
|
|
|
10'376 |
|
|
|
|
|
|
Short-term
investments and other |
3'793 |
|
|
|
|
|
|
|
|
|
|
Investments
from the insurance business |
116'772 |
|
|
|
|
|
|
|
|
|
|
Equity
securities |
10'934 |
|
|
|
|
|
|
|
|
|
|
Debt
securities |
2'495 |
|
|
|
|
|
|
|
|
|
|
Short-term
investments and other |
794 |
|
|
|
|
|
|
|
|
|
|
Real
estate |
296 |
|
|
|
|
|
|
|
|
|
|
Investments
where the investment risk is borne by the policyholder |
14'519 |
|
|
|
|
|
|
|
|
|
|
Investments
from the insurance business |
131'291 |
|
|
|
|
|
|
|
|
|
|
INFORMATION
FOR INVESTORS
Credit
Suisse Group shares |
|
|
|
|
|
|
|
|
|
Ticker
symbols |
|
|
|
|
|
|
|
|
|
Stock
exchange listings |
|
Bloomberg |
Reuters |
Telekurs |
|
|
|
|
|
SWX
Swiss Exchange/virt-x |
|
CSGN
VX |
CSGZn.VX |
CSGN,380 |
|
|
|
|
|
Frankfurt |
|
CSX
GR |
CSGZn.DE |
CSX,013 |
|
|
|
|
|
New
York (ADS) |
1) |
CSR
US |
CSR.N |
CSR,065 |
|
|
|
|
|
1)
1 ADS represents 1 registered share. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Swiss
security number |
|
1213853 |
|
|
|
|
|
|
|
ISIN
number |
|
CH0012138530 |
|
|
|
|
|
|
|
German
security number |
|
DE
876 800 |
|
|
|
|
|
|
|
CUSIP
number |
|
225
401 108 |
|
|
|
|
|
|
|
Ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Agencies |
|
Credit
Suisse Group |
Credit
Suisse |
Credit
Suisse First Boston |
Winterthur |
|
|
|
|
|
|
|
|
|
|
|
|
|
Long
term |
Short
term |
Long
term |
Short
term |
Long
term |
Short
term |
|
|
|
|
|
|
|
|
|
|
|
|
Moodys,
New York |
|
Aa3 |
|
Aa3 |
P1 |
Aa3 |
P1 |
A1 |
|
|
|
|
|
|
|
|
|
|
|
Standard
& Poors, New York |
|
A |
A1 |
A+ |
A1 |
A+ |
A1 |
A |
|
|
|
|
|
|
|
|
|
|
|
Fitch
Ratings, New York |
|
AA |
F1+ |
AA |
F1+ |
AA |
F1+ |
AA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
calendar |
|
|
|
|
|
|
|
Annual
Report 2002 |
Friday,
April 4, 2003 |
|
|
Annual
General Meeting |
Friday,
April 25, 2003 |
|
|
First
quarter results 2003 |
Tuesday,
May 6, 2003 |
|
|
Second
quarter results 2003 |
Tuesday,
August 5, 2003 |
|
|
Third
quarter results 2003 |
Tuesday,
November 4, 2003 |
|
|
Q4 AND FULL YEAR RESULTS 2002
PRESENTATION
|
|
|
INTRODUCTION |
|
|
|
CONSOLIDATED
RESULTS |
|
|
|
CREDIT
SUISSE FINANCIAL SERVICES |
|
|
|
CREDIT
SUISSE FIRST BOSTON |
|
|
|
SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION |
RESULTS OVERVIEW
SPECIAL ITEMS AFFECTING
NET PROFIT |
|
|
(1) |
assuming break-even of insurance units
based on current investment income only |
(2) |
non-continuing businesses: real estate
and distressed trading, and "legacy" private equity |
UPDATE ON KEY PRIORITIES |
(1/2) |
UPDATE ON KEY PRIORITIES |
(2/2) |
WINTERTHUR: BACKGROUND OF ANNOUNCED MEASURES
|
|
|
|
|
Paradigm shift in the European
insurance industry |
|
|
|
|
|
|
|
No more easy returns from the
stock markets |
|
|
|
|
|
|
|
Capital base eroded, limiting
growth options |
|
|
|
|
|
|
|
Increased focus on technical
results and costs |
|
|
|
|
|
|
|
|
|
At Winterthur, a number of
measures already initiated |
|
|
|
|
|
|
|
Investment strategy adapted |
|
|
|
|
|
|
|
Premium increases, cost reduction
programs |
|
|
|
|
|
|
|
Selective re-underwriting to
re-price/remove underperforming business |
|
|
|
|
|
|
|
Divestitures of several smaller
operations |
|
|
|
|
WINTERTHUR: KEY STRATEGY ELEMENTS
|
|
|
|
|
Focus on cost management and
profitability |
|
|
|
|
|
|
|
Leverage existing strengths and positions |
|
|
|
|
|
|
|
Prudently manage capital and risks |
|
|
|
|
|
|
|
|
|
|
Aligned management model |
|
|
|
|
|
|
|
Life and non-life divisions brought together
in selected countries |
|
|
|
|
|
|
|
Realize synergies in distribution and support
functions |
|
|
|
|
|
|
|
One Executive Board, one corporate center |
|
|
|
|
|
|
|
|
|
|
Operational excellence throughout
the company |
|
|
|
|
|
|
|
Starting at the corporate center: focused
support for market units - reduction of around 350 job positions in 2003 |
|
|
|
|
|
|
|
Rigorous implementation of all measures
already initiated |
|
|
|
|
|
|
|
|
|
|
Continued focus on selected
core markets |
|
|
|
WINTERTHUR: NEW EXECUTIVE BOARD
REVENUES
OPERATING EXPENSES AND DEPRECIATION
PROVISIONS
(1) totals include Corporate
Center and adjustments but exclude exceptional provisions of CHF 397 m in Q4/01
and CHF 984 m in Q4/02
CSFB CREDIT-RELATED PROVISIONS
|
|
|
Record US default rates drove
22% increase in corporate credit provisions |
|
|
|
Provisions for "legacy" assets
(sales and writedowns) to reduce
exposure |
|
|
(1) |
excluding restructuring-related
charges of CHF 397 m in 2001 and CHF 984 m in 2002 |
(2) |
excluding "legacy"
assets shown separately |
IMPAIRED LOANS
(1) |
due from banks and
customers and mortgages (excluding securities lending and reverse repurchase
agreements) |
BANKING CAPITAL RATIOS
AS OF DECEMBER 31, 2002
|
Pershing transaction
to raise CSFB's and Group's tier 1 ratio by approximately
1% and 0.5%, respectively
|
|
|
(1) |
consolidated banking entities Credit Suisse and Credit Suisse First Boston |
(2) |
including holding company and other banking units (e.g. independent private banks) |
(3) |
net of tax liability |
WINTERTHUR GROUP EU SOLVENCY
MARGIN
AS OF DECEMBER 31, 2002
CREDIT SUISSE FINANCIAL SERVICES OVERVIEW
PRIVATE BANKING
(1) |
before exceptional items, cumulative
effect
of
change in accounting principles and minority interests |
CORPORATE & RETAIL BANKING
LIFE & PENSIONS
INSURANCE
CSFS OBJECTIVES FOR 2003
|
|
|
| Overall: |
|
|
|
|
|
Strong efforts initiated
to further reduce cost base |
|
|
|
|
|
|
| Private
Banking: |
|
|
|
|
|
Lower asset base with
impact on operating income |
|
|
|
|
|
|
| Corporate & Retail Banking: |
|
|
|
|
|
Some increase in credit
risk costs likely |
|
|
|
|
|
|
| Winterthur: |
|
|
|
|
|
Measures taken to allow
profitability for the full year |
|
|
|
|
|
However, quarterly results
likely to be impacted by volatility in financial markets |
|
|
|
PRESENTATION
|
|
INTRODUCTION |
|
|
|
CONSOLIDATED
RESULTS |
|
|
|
CREDIT
SUISSE FINANCIAL SERVICES |
|
|
|
CREDIT
SUISSE FIRST BOSTON |
|
|
|
SUMMARY |
|
|
|
|
|
|
|
|
|
CAUTIONARY
STATEMENT REGARDING
FORWARD-LOOKING INFORMATION |
CREDIT SUISSE FIRST BOSTON OVERVIEW
CSFB RESULTS
CSFB NET OPERATING PROFIT CONTRIBUTION
|
2001 |
|
2002 |
|
|
|
|
|
in USD million |
|
|
|
|
|
|
|
|
|
Q4 |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
2001 |
|
2002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Institutional
Securities |
(83 |
) |
218 |
|
296 |
|
(183 |
) |
63 |
|
918 |
|
394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSFB
Financial Services |
121 |
|
70 |
|
71 |
|
37 |
|
48 |
|
259 |
|
226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal |
38 |
|
288 |
|
367 |
|
(146 |
) |
111 |
|
1,177 |
|
620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
costs |
(152 |
) |
(133 |
) |
(138 |
) |
(109 |
) |
(100 |
) |
(647 |
) |
(480 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating profit/(loss)(1) |
(114 |
) |
155 |
|
229 |
|
(255 |
) |
11 |
|
530 |
|
140 |
|
|
(1) excluding exceptional items, cumulative
effect of change in accounting principles and amortization of acquired intangible
assets and goodwill
CSFB NET PROFIT/(LOSS)
REVENUES
MARKET SHARES REMAIN STRONG
|
|
|
|
|
|
|
|
|
|
2002 |
|
2001 |
|
|
|
|
|
|
|
|
|
|
|
Rank |
|
Share |
|
Rank |
|
Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Global M&A |
|
3 |
|
16.8% |
|
4 |
|
22.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Equity |
|
4 |
|
8.2% |
|
5 |
|
10.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Debt |
|
2 |
|
7.9% |
|
3 |
|
8.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
High Yield |
|
1 |
|
15.5% |
|
1 |
|
16.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Research
Global
|
|
1 |
|
21RA |
|
3 |
|
18 RA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Income Research
North America
|
|
2 |
|
31 RA |
|
3 |
|
32RA |
|
|
|
|
|
|
|
|
|
|
|
|
CSFB FINANCIAL SERVICES REVENUE DRIVERS
|
Net asset outflow reduced
vs. Q3/02 |
|
|
|
Year-on-year AuM adversely
impacted by performance, net asset outflows and sale of CSFB direct (USD 21 bn) |
|
|
|
Lower customer
activity at Private Client Services |
|
|
SUBSTANTIAL RIGHT-SIZING OF EXPENSE BASE
|
Expenses down USD 2.7 bn
(23%) vs 2001 |
|
|
|
|
|
|
|
Headcount reduced 14% during
2002; 23% since
2000 |
|
|
|
|
|
|
|
Progress in bringing compensation/revenue
ratio more in line
with peers |
|
|
|
|
|
|
|
Cost reductions achieved
while maintaining revenue-generating capabilities and market
positions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change vs 2001 |
|
|
|
|
|
|
|
|
|
|
|
(in USD billion) |
|
2002 |
|
2001 |
|
in USD billion |
|
in % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expenses(1) |
|
6,191 |
|
8,125 |
|
(1,934) |
|
(24) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating expenses |
|
3,086 |
|
3,852 |
|
(766) |
|
(20) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
9,277 |
|
11,977 |
|
(2,700) |
|
(23) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Headcount (period-end) |
|
23,424 |
|
27,302 |
|
(3,878) |
|
(14) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation/revenue(2) |
|
52.6% |
|
54.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
excludes amortization
of retention payments and exceptional items |
(2) |
excludes acquisition
interest, amortization of retention payments and exceptional items |
"LEGACY" ASSETS EXPOSURE REDUCED BY 45%
|
|
|
|
2002 results include charges
of
USD 1.1 bn from "legacy" assets |
|
|
|
|
|
Net operating profit drag of
USD 773 m |
|
|
|
|
Exposure reduced in 2002 by USD
2.3 bn to USD 3.0 bn |
|
|
|
|
|
Q4/02 reduction of USD
0.8 bn |
|
|
|
|
|
Q4/02 charges of USD 273
m offset
by USD 309 m Swiss Re gains |
|
|
|
|
|
2003 P&L charges expected
to be
substantially lower |
|
|
(1) |
only non-continuing
business, excluding unfunded commitments of USD 1.2 bn, 1.0 bn, 0.9 bn and
0.8 bn as of 12/99, 12/00, 12/01 and 12/02 respectively, of which USD 0.4
bn represents employee commitments as of 12/01 and 12/02 |
CSFB OBJECTIVES FOR 2003
|
|
|
|
|
Will build on strong franchise and market
share |
|
|
|
|
|
Lower expense base in line with expected
revenues |
|
|
|
|
|
Earnings drag from "legacy" assets largely
behind us |
|
|
|
|
|
Provisions expected to decrease but vulnerable
to general credit cycle |
|
|
|
|
|
Well positioned for improved return on
equity |
|
|
|
|
|
|
PRESENTATION
|
|
|
INTRODUCTION
|
|
|
|
CONSOLIDATED
RESULTS |
|
|
|
CREDIT
SUISSE FINANCIAL SERVICES |
|
|
|
CREDIT
SUISSE FIRST BOSTON |
|
|
|
SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
CAUTIONARY
STATEMENT REGARDING
FORWARD-LOOKING INFORMATION |
SUMMARY
|
|
|
In the 4th quarter, we took
further steps towards returning to profitability |
|
|
|
|
addressed a
number of exceptional cost
items |
|
|
|
|
|
strengthened our balance sheet
and improved capital base
|
|
|
|
Core businesses continued
to hold leadership positions in
key markets |
|
|
|
Economic and geopolitical
outlook remains uncertain |
|
|
|
Measures taken in 2002 expected
to restore the Group to profitability in 2003 |
|
|
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION
This presentation
contains statements that constitute forward-looking statements. In addition,
in the future we, and others on our behalf, may make statements that constitute
forward-looking statements. Such forward-looking statements may include, without
limitation, statements relating to our plans, objectives or goals; our future
economic performance or prospects; the potential effect on our future performance
of certain contingencies; and assumptions underlying any such statements.
Words such as
believes, anticipates, expects, "intends
and plans and similar expressions are intended to identify forward-looking
statements but are not the exclusive means of identifying such statements. We
do not intend to update these forward-looking statements except as may be required
by applicable laws.
By their very nature,
forward-looking statements involve inherent risks and uncertainties, both general
and specific, and risks exist that predictions, forecasts, projections and other
outcomes described or implied in forward-looking statements will not be achieved.
We caution you that a number of important factors could cause results to differ
materially from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements. These factors include (i) market
and interest rate fluctuations; (ii) the strength of the global economy in general
and the strength of the economies of the countries in which we conduct our operations
in particular; (iii) the ability of counterparties to meet their obligations
to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax
policies, and currency fluctuations; (v) political and social developments,
including war, civil unrest or terrorist activity; (vi) the possibility of foreign
exchange controls, expropriation, nationalization or confiscation of assets
in countries in which we conduct our operations; (vii) the ability to maintain
sufficient liquidity and access capital markets; (viii) operational factors
such as systems failure, human error, or the failure to properly implement procedures;
(ix) actions taken by regulators with respect to our business and practices
in one or more of the countries in which we conduct our operations; (x) the
effects of changes in laws, regulations or accounting policies or practices;
(xi) competition in geographic and business areas in which we conduct our operations;
(xii) the ability to retain and recruit qualified personnel; (xiii) the ability
to maintain our reputation and promote our brands; (xiv) the ability to increase
market share and control expenses; (xv) technological changes; (xvi) the timely
development and acceptance of our new products and services and the perceived
overall value of these products and services by users; (xvii) acquisitions,
including the ability to integrate successfully acquired businesses; (xviii)
the adverse resolution of litigation and other contingencies; and (xix) our
success at managing the risks involved in the foregoing.
We caution you
that the foregoing list of important factors is not exclusive; when evaluating
forward-looking statements, you should carefully consider the foregoing factors
and other uncertainties and events, as well as the risks identified in our most
recently filed Form 20-F and reports on Form 6-K furnished to the US Securities
and Exchange Commission.
SUPPLEMENTS TO THE
FOURTH QUARTER 2002 AND
FULL YEAR RESULTS 2002
PRESENTATION
Back to Contents
CONTENT
|
|
|
|
|
|
|
Back to Contents
UPDATE ON ACCOUNTING CHANGES
(1/2)
Deferred
tax assets
on net
operating
losses
|
Back to Contents
UPDATE ON ACCOUNTING CHANGES
|
(2/2) |
Inherent
loss allowance in loan portfolio |
|
|
Rationale: |
|
|
Consistent
with anticipated EBK change in estimate guidelines |
|
|
|
|
|
|
|
|
|
|
|
In
line with peers general trend of deteriorating credit environment |
|
|
|
|
CSFS: |
|
|
CHF
245 million |
|
|
|
|
|
|
|
|
|
|
|
Current
ACP model in banking already compliant
with EBK guidelines |
|
|
|
|
|
|
|
|
|
|
|
Charges
recorded at Corporate Center |
|
|
|
|
CSFB: |
|
|
CHF
530 million (USD 340 m) |
|
|
|
|
|
|
|
|
|
|
|
Included
in BU/segment results |
|
|
|
|
Neutral to
net operating profit due to release of reserves
for general banking risks of CHF 580 m recorded as extraordinary income |
Note: figures above exclude CHF
3 million from exchange rate impact
Back to Contents
PRIVATE BANKING
DEVELOPMENT OF GROSS MARGIN
Back to Contents
PRIVATE BANKING
AUM BY PRODUCT & CURRENCY
Back to Contents
WINTERTHUR GROUP
INVESTMENT RESULT (1) |
(1/3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2002(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
12M/02(1) |
|
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current income |
|
5,096 |
|
|
|
1,236 |
|
1,435 |
|
1,203 |
|
1,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gains |
|
5,421 |
|
|
|
1,346 |
|
1,389 |
|
2,353 |
|
333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized losses |
|
(4,738) |
|
|
|
(647) |
|
(2,129) |
|
(1,589) |
|
(373) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments |
|
(3,887) |
|
|
|
(942) |
|
(857) |
|
(1,413) |
|
(675) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(464) |
|
|
|
(114) |
|
(100) |
|
(135) |
|
(115) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income (P&L) |
|
1,428 |
|
|
|
879 |
|
(262) |
|
419 |
|
392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
general account only |
Note: |
Q1 to Q3 reclassified to the current presentation
format, including real estate own use, interest paid from current income
and realized gains/losses to other |
Back to Contents
WINTERTHUR GROUP
INVESTMENT RESULT (1) |
(2/3) |
|
|
|
Development of gross unrealized losses
in equity portfolio |
|
|
|
|
|
Given flat markets,
unrealized
losses are recognized in the P&L after 6 months as an
impairment |
|
|
|
NOP impact
highly country-specific depending on whether the investment risk is borne by
the company or the policyholder |
|
|
|
Current unrealized losses in
Q4/02 substantially lower than at year-end 2001 and also improved vs Q3/Q2
|
|
|
|
Taking only the NOP
relevant portion into account, unrealized losses decreased
38% vs Q3/02
level |
|
|
(1) |
general account only; totals different
from published figures in quarterly report due to consolidation effects |
Back to Contents
WINTERTHUR GROUP
INVESTMENT RESULT (1) |
(3/3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
in CHF m(1) |
Life &
Pensions |
Insurance |
Winterthur
Group |
|
|
|
|
|
|
|
|
Net investment income
2001
(insurance chart of account) |
4,766 |
2,217 |
6,983 |
|
|
|
|
|
|
|
|
Net investment income 2002
(insurance chart of account) |
1,438 |
(10) |
1,428 |
|
|
|
|
|
|
|
|
Delta: Net investment income
2001/2002
(insurance chart of account) |
(3,328) |
(2,227) |
(5,554) |
|
|
|
|
|
|
|
|
Impact on operating income
(bancassurance chart of account) |
(1,800) |
(1,800) |
(3,600) |
|
|
|
|
|
|
|
|
Impact on net operating profit |
(1,600) |
(1,700) |
(3,300) |
|
|
|
|
|
|
|
Back to Contents
WINTERTHUR GROUP
INVESTMENT PORTFOLIO
ASSET ALLOCATION
|
Responsive to equity market
development |
|
|
|
|
|
reduction of equity securities from CHF
22.5 bn (18%) to 9.1 bn (7%) in 2002 |
|
|
|
|
|
"investment view" equity exposure stands
at CHF 8.0 bn (6%)(1) |
Back to Contents
WINTERTHUR GROUP
INVESTMENT PORTFOLIO BY COUNTERPARTY
RATING
Back to Contents
WINTERTHUR GROUP
EQUITY BASE STRENGTHENED IN 2002
|
CSG capital injection of CHF 3.7 bn(1)
eligible solvency capital to maintain and strengthen capital |
|
|
|
Consolidated EU group solvency now at 167% |
|
|
|
Group has sufficient capital to sustain
growth in the near future |
(1) |
CHF 2.6 bn equity capital contribution
and CHF 1.1 bn hybrid debt |
(2) |
net of tax/shadow |
Back to Contents
LIFE & PENSIONS
GROSS PREMIUMS WRITTEN
% of total, YTD
Back to Contents
WINTERTHUR INSURANCE
SPLIT BY LINE OF BUSINESS & COMBINED
RATIOS
(1) in local currencies
Back to Contents
WINTERTHUR INSURANCE
PREMIUM INCREASES OFFSET BY DISPOSALS
|
|
|
Gross
Written Premiums by Region (CHF bn)
|
|
|
|
2002 |
2001 |
Growth |
Market
Position |
(1) |
|
United Kingdom |
5.0 |
3.8 |
32% |
5th |
|
|
|
|
North America |
3.4 |
3.2 |
6% |
>20 |
|
|
|
|
Switzerland |
2.9 |
2.7 |
7.4% |
1st |
|
|
|
|
Germany |
2.5 |
2.5 |
0% |
14th |
|
|
|
|
Italy |
1.9 |
1.8 |
6% |
8th |
|
|
|
|
Other, disposals |
2.7 |
4.4 |
-39% |
n/a |
|
|
|
|
Total |
18.4 |
18.4 |
0% |
7th |
(2) |
|
|
(1) |
based on 2001 GWP |
(2) |
total European |
Back to Contents
CREDIT SUISSE FIRST BOSTON
REVENUE DETAIL 2002
Back to Contents
CREDIT SUISSE FIRST BOSTON
EMERGING MARKETS EXPOSURE BY REGION
31.12.02
in USD m |
Americas |
|
|
CIS/
Europe |
|
|
Mid.
East/ Africa |
|
|
Asia
/ Pacific |
|
|
Total
Global |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
1,299 |
|
|
1,243 |
|
|
567 |
|
|
1,365 |
|
|
4,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan equivalent exposure |
586 |
|
|
304 |
|
|
309 |
|
|
476 |
|
|
1,675 |
|
Money market |
0 |
|
|
0 |
|
|
0
|
|
|
0 |
|
|
0 |
|
F/X, precious metals |
586 |
|
|
304 |
|
|
309 |
|
|
476 |
|
|
1,675 |
|
Derivatives |
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading positions |
238 |
|
|
904 |
|
|
843 |
|
|
3,077 |
|
|
5,062 |
|
Fixed income |
157 |
|
|
887 |
|
|
826 |
|
|
2,827 |
|
|
4,697 |
|
Equities |
81 |
|
|
17 |
|
|
17 |
|
|
249 |
|
|
364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reverse repos |
462 |
|
|
120
|
|
|
47
|
|
|
76
|
|
|
705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total, gross |
2,585 |
|
|
2,571 |
|
|
1,766 |
|
|
4,993 |
|
|
11,916 |
|
Net notional FX
position |
(108)
|
|
|
(314) |
|
|
(737)
|
|
|
(1,739 |
|
|
(2,897) |
|
Provisions |
(197) |
|
|
(13) |
|
|
(18) |
|
|
(219) |
|
|
(447) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure |
2,281 |
|
|
2,244 |
|
|
1,011 |
|
|
3,035 |
|
|
8,572 |
|
Back to Contents
CREDIT SUISSE FIRST BOSTON
EMERGING MARKETS EXPOSURE BY SELECTED
COUNTRIES
31.12.02
in USD m |
|
Argentina |
|
|
Brazil |
|
|
Mexico |
|
|
Russia |
|
|
Indonesia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
221 |
|
|
258 |
|
|
394 |
|
|
500 |
|
|
415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan equivalent
exposure |
|
56 |
|
|
96 |
|
|
311 |
|
|
44 |
|
|
49 |
|
Money
market |
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
F/X,
precious metals |
|
56
|
|
|
96 |
|
|
311 |
|
|
44 |
|
|
49 |
|
Derivatives |
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading positions |
|
48 |
|
|
78 |
|
|
2 |
|
|
281 |
|
|
329 |
|
Fixed
income |
|
48 |
|
|
0 |
|
|
0 |
|
|
270 |
|
|
328 |
|
Equities |
|
0 |
|
|
78 |
|
|
2 |
|
|
11 |
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reverse repos |
|
11 |
|
|
327 |
|
|
36 |
|
|
67 |
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total, gross |
|
336 |
|
|
759 |
|
|
743 |
|
|
891 |
|
|
793 |
|
Net
notional FX position |
|
0 |
|
|
(409 |
|
) |
303 |
|
|
(166 |
|
) |
22 |
|
Provisions |
|
(164 |
|
) |
5 |
|
|
(17 |
|
) |
0 |
|
|
(169 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net exposure |
|
173 |
|
|
345 |
|
|
1,029 |
|
|
726 |
|
|
646 |
|
Back to Contents
CREDIT SUISSE FIRST BOSTON
COUNTERPARTY EXPOSURE BY INDUSTRY
Selected
CSFB Exposures (as of December 31, 2002) |
in USD m |
|
|
|
Industry |
Current
exposure |
Undrawn
commitm. |
Total
exposure |
Telecom service providers |
1,720 |
2,185 |
3,905 |
Telecom manufacturing |
179 |
230 |
409 |
Merchant energy |
1,267 |
258 |
1,525 |
Airlines |
583 |
425 |
1,008 |
|
Note:
Current exposure equals committed
amount (includes only drawn commitments) for lending plus mark-to-market for
counterparty trading less credit protection
Total exposure equals "current
exposure" plus undrawn commitments
Back to Contents
CREDIT SUISSE FIRST BOSTON
"LEGACY" ASSETS EXPOSURE
Note: unfunded
commitments as of 12/01 and 12/02 include USD 0.4 bn employee commitments
Back to Contents
CREDIT SUISSE FIRST BOSTON
"LEGACY" ASSETS P&L CHARGES
Charges
related to "legacy" assets
in CSFB's income statement |
in USD million |
Real Estate |
|
Distressed Portfolio |
|
Private Equity |
|
Total |
|
2002 |
|
|
|
|
|
|
|
|
Operating Income |
(120 |
) |
(523 |
) |
(275 |
) |
(919 |
) |
Provisions |
(154 |
) |
- |
|
- |
|
(154 |
) |
Taxes |
77 |
|
147 |
|
77 |
|
301 |
|
|
|
|
|
|
|
|
|
|
Net Operating Profit/(Loss) |
(197 |
) |
(377 |
) |
(199 |
) |
(773 |
) |
|
Q4/02 |
|
|
|
|
|
|
|
|
Operating Income |
(14 |
) |
(144 |
) |
(123 |
) |
(281 |
) |
Provisions |
8 |
|
- |
|
- |
|
8 |
|
Taxes |
2 |
|
40 |
|
34 |
|
76 |
|
|
|
|
|
|
|
|
|
|
Net Operating Profit/(Loss) |
(4 |
) |
(103 |
) |
(89 |
) |
(196 |
) |
|
|
|
|
|
|
|
|
|
|
Back to Contents
CREDIT SUISSE FIRST BOSTON
PERSHING SALE
Back to Contents
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION
This presentation contains statements that constitute
forward-looking statements. In addition, in the future we, and others on our
behalf, may make statements that constitute forward-looking statements. Such
forward-looking statements may include, without limitation, statements relating
to our plans, objectives or goals; our future economic performance or
prospects;
the potential effect on our future performance of certain contingencies;
and assumptions underlying any such statements.
Words such as believes, anticipates, expects, "intends and plans and
similar expressions are intended to identify
forward-looking
statements but are not the exclusive means of identifying such statements. We
do not intend to update these forward-looking statements
except as may be required by applicable laws.
By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and specific, and
risks exist that predictions, forecasts, projections and other outcomes described
or implied in forward-looking statements will not be achieved. We
caution you that a number of important factors could cause results to
differ materially from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking
statements. These factors
include (i) market and interest rate fluctuations; (ii) the strength of the global
economy in general and the strength of the economies of the countries in which
we conduct
our operations in particular; (iii) the ability of counterparties to
meet their
obligations to us; (iv) the effects of, and changes in,
fiscal, monetary, trade and tax policies, and currency fluctuations; (v)
political
and social
developments, including war, civil unrest or terrorist activity; (vi)
the possibility of foreign exchange controls, expropriation, nationalization
or confiscation of assets in countries in which we conduct our operations;
(vii) the ability to maintain sufficient liquidity and access capital
markets;
(viii) operational factors such as systems failure, human error, or
the failure to properly implement
procedures; (ix) actions taken by regulators with respect to our business and
practices in one or more of the countries
in
which we conduct our operations; (x)
the effects of changes in laws, regulations or accounting policies
or practices; (xi) competition in geographic and business areas in which
we
conduct our
operations; (xii) the ability to retain and recruit qualified personnel;
(xiii) the ability to maintain our reputation and promote our brands;
(xiv) the ability to increase market share and control expenses; (xv) technological
changes; (xvi) the timely development and acceptance of our new products
and services and the perceived overall value
of these products and services by users; (xvii) acquisitions, including
the ability to integrate successfully acquired businesses; (xviii) the
adverse resolution of litigation and other contingencies; and (xix) our success
at managing the risks involved in the foregoing.
We caution
you that the foregoing list
of important factors is not exclusive; when evaluating forward-looking
statements, you should carefully consider
the
foregoing factors and other uncertainties and events, as well as the
risks
identified in our most recently filed Form 20-F and reports on Form
6-K furnished to the US Securities and Exchange
Commission.
Signatures
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
CREDIT
SUISSE GROUP |
|
(Registrant) |
|
|
Date February 25,
2003 |
By:
/s/ David Frick |
|
(Signature)* |
* Print the name and
title of the signing officer under his signature. |
Member
of the Executive Board |
|
|
|
By:
/s/ Karin Rhomberg Hug |
|
(Signature)* |
|
Managing
Director |