Credit Suisse Private Banking update UBS Swiss Equities ... · PDF fileCredit Suisse Private...

Credit Suisse

Private Banking update

UBS Swiss Equities Conference

Walter Berchtold, CEO Private BankingZurich, January 17th, 2008

UBS Swiss Equities ConferenceJanuary 17th, 2008,

Cautionary statement regarding forward-looking and non-GAAP information

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve inherent risks and uncertainties, and we might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking statements.

A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions we express in these forward-looking statements, including those we identify in "Risk Factors" in our Annual Report on Form 20-F for the fiscal year ended December 31, 2006 filed with the US Securities and Exchange Commission, and in other public filings and press releases.

We do not intend to update these forward-looking statements except as may be required by applicable laws.

This presentation contains non-GAAP financial information. Information needed to reconcile such non-GAAP financial information to the most directly comparable measures under GAAP can be found in Credit Suisse Group's third quarter report 2007.

Cautionary statement


Credit Suisse and Private Banking at 3Q07

Strategy for Private Banking

International Growth

Client Value

The Integrated Bank

Financial Targets

Topics for today


4'498

601

4'109

Investment Banking Private Banking Asset Management

9M06 9M07

Pre-tax income in CHF

+43%+19%

(2)%

Pre-tax income margin in %25.1 27.7 39.7 40.9 19.7 27.0

1) Excluding credits received from insurance settlements for litigation costs of CHF 474 m2) Excluding business realignment costs of CHF 192 m

1)

2)

Record nine-month results in Private Banking andInvestment Banking


1) Of which ~630,000 Wealth Management

! 2.45 million clients1)

! 22,800 employees

! CHF 992 bn AuM

! CHF 173 bn net loans

! More than 160 Wealth Management locations worldwide

! 216 Corporate and Retail Banking branches in Switzerland

Private Banking: Facts and Figures as of Sept 30th, 2007


Continued strength in Wealth Management in 9M07

38.8 37.339.6 40.7

2004 2005 2006 9M072004 2005 2006 9M07

31

38

CHF bn

Net new assets (NNA)

Assets under management (AuM)

Net new asset growth on AuM in %6% 8% 7% 6.5%

835

568

693

784

43

51

Pre-tax income margin in %

+55%


Current markets: Where do we stand ?

! Long-term growth prospects for wealth managers remain intact ...

� Rise of emerging markets� Generational transfers of wealth� Private investment banking

! ... and Credit Suisse well positioned to face challenges and to outperform its competitors

� Global presence� Strong balance sheet� Unique One Bank approach


We have been following a consistent strategy over the last years

Market share gains in

SwitzerlandBest people

Premier global private bank

Premier bank in Switzerland

Client value proposition

International growth

Integrating the banking businesses

Productivity and financial performance

Credit Suisse is well positioned to excel in the current market conditions


We target continued strong growth in mature markets ...

! Western Europe: Accelerated growth

! USA: Turnaround started

! Japan: Preparing onshore presence

! Australia: Launched onshore

USA Western Europe

Japan

Australia


... as well as further increased presence in key emerging markets

! Brazil: Expanded presence (Hedging Griffo)

! Mexico: Preparing onshore presence

! Russia: Continued investment

! Gulf: Leverage One Bank locally

! India: Implementing onshore operations

! China: Established onshore presence

China

Brazil

Russia

India

GulfMexico


PB EMEA: Key figures and achievements

Key Achievements 2007Key Figures

! AuM (CHF bn) 297

! NNA growth1) 8%

! Net revenues growth2) 21%

! Relationship managers 1,163

! Net new RMs 9%

! Gross margin (bps)1) 125

9M 2007

! Focus on further development of core markets: Germany, Italy, Spain, France and UK! Continued investment into Moscow platform! Implementation of onshore operations in India ! Further develop the Gulf region in a One Bank approach! Broaden financing offering in Western Europe

! Opened Rep Offices in Ukraine and Kazakhstan; investment advisory in Israel; onshore operations in Austria

! Strengthened corporate advisory and mid cap services

! Segment initiatives for top executives ! Improved UHNWI coverage! Increased gross margin

Way Forward

1) Annualized2) 9M 2007 vs. 9M 2006


PB Americas: Key figures and achievements

! AuM (CHF bn) 116

! NNA growth1) 6%


! Relationship managers 422

! Net new RMs 2%


Key Figures 9M 2007

! Started turnaround of US business- Expanded product suite: loans, hedge funds,

private equity, structured products- Opened offices in Greenwich (CT),

Philadelphia (PA) and Northbrook, IL! Expanded presence in LatAm

- Acquisition of Hedging Griffo- Opening of Panama office

! Build comprehensive wealth management in the US- Further build product platform- Roll-out advisory process, reporting and workplace tools in 2008

! Further grow Latin America - Enter growing onshore markets of Mexico and Brazil - Exploit synergies between PB and IB

Key Achievements 2007

Way Forward



PB Asia-Pacific: Key figures and achievements

! Strengthened management team! Opened branch in Shanghai! Established onshore presence in Australia! Continued product innovation

! AuM (CHF bn) 64

! NNA growth1) 9%


! Relationship managers 303

! Net new RMs 32%


Key Figures 9M 2007

! Further invest in Singapore and Hong Kong hubs, e.g. product and solution capabilities, operations platform

! Realize value from newly established onshore presences (Australia, Indonesia, China)! Establish onshore presence in Japan (in 2008)! Leverage One Bank approach

Key Achievements 2007

Way Forward



Key for growth in all regions: Hiring top relationship managersNumber of relationship managers in Wealth Management

+300~330 p.a.

~4'100

3'1002'799

2006 2007 E 2010 Target


! Clear business case for each hired RM (NNA, revenues)

! Average break-even for RMs 18-24 months

! Focus on pay forperformance; limited upfront bonus

Prudent economics

! Entrepreneurial spirit

! Share our view on how we serve clients

! Broad solution and product expertise

Cultural fit

Our hiring philosophy

+


Client Value: We have successfully implemented structured advisory ...

! One process globally; roll-out to be completed by year-end 2008

! Continued investment since 2000! Full picture: clients' assets, liabilities and needs! State-of-the-art tool support! Leveraging know-how of the integrated bank

! Higher client satisfaction! Increased sales and gross margins! Changing mind-sets and the way we work! Systematic client segmentation

Key features

Benefits


... and we are rolling out detailed client profitability analysis ...

Revenue Economic profit

Profitable Not profitable PFull transparency of economic profit at client level

PShifts perception of client portfolio

PEnables relationship managers to take entrepreneurial decisions

Clie

nt 1

Clie

nt 2

Clie

nt 3


AuM

Source of wealth

Life

-cyc

le p

hase

Behaviortype

Needs clusteringClient segments(Examples)

+

! Entrepreneurs! Executives! Family Offices! Inheritors! Buyers-and-

Holders! ...

With market-specific adaptations

... thus providing a sound basis for systematic client segmentation


! Broad risk diversification

! Large variety of innovative solutions

! Professional investment management

! Tax optimization

! Broad range of components for tailor made solutions

! More time for advice and relationship building

! Improved efficiency

! Reduced revenue volatility

! Higher margins through higher value added

! Increased revenues for IB and AM

Client

Relationship Manager

Bank

Managed Assets as key initiative

Benefits for...


Solution Specialists

Client

! Investment funds! Discretionary mandates! Alternative investment

products ! Private equity! Private label funds

! IPO! M&A advisory! Derivatives! Structured finance! Trading

Investment Banking! Investment consulting! Trusts! Insurance! Inher. & tax consulting! Margin lending! Mortgages

Asset ManagementPrivate Banking

Relationship Manager

Shared Services

UHNWI: Unique value proposition through integrated coverage and solution delivery ...


... significantly enhances UHNWI revenues and margins

Total revenues with UHNWI clients1), indexed, 2007

Revenues in WM

Additional revenues in IB and AM

Key drivers:

PEquity derivativesPReal estate financingPEquity capital marketsPMergers & acquisitionsPPrivate placements

1) AuM > CHF 25m

~30 ~30~30

100

37


Overall, significantly increased One Bank revenues for other segments ...

2006 2007

RevenuesCHF 620m

RevenuesCHF 590m

Asset Management

Investment Banking

RevenuesCHF 1,000m

RevenuesCHF 600m

Asset Management

Investment Banking

CHF 1.2bn CHF 1.6bn (+33%)

Private Banking

Private Banking


16 19

115112

... which strengthen overall gross margins

2006 9M 20071)

Booked in Wealth Management

Referred to IB/AM

128 134

Gross margin with Wealth Management clients (in bps)

1) Annualized


Our targets: Delivering strong results, while investing continuously and significantly for growth

! International platforms! Top relationship managers

Growth investments of CHF 300m+ p.a. ...

Pre-tax income margin > 40%

Net new assets growth > 6% (WM only)

Medium term-targets

! Innovative client value proposition! Managed Assets

... supported by revenue growth initiatives ...

! Centers of Excellence! Operational Excellence

... and stringent cost management in existing business


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