credit-suisse Quarterly Report Q1/2002

QUARTERLY REPORT 2002 Q1

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 Group’s registered

shares (CSGN) are listed in Switzerland, Frankfurt and Tokyo, and in the form of American Depositary

Shares (CSR) in New York. The Group employs around 80,000 staff worldwide. As of March 31, 2002,

it reported assets under management of CHF 1,407.0 billion.

1 Editorial 2 Financial highlights Q1/2002 4 An overview of Credit Suisse Group 7 Review of business units 7 Credit Suisse Financial Services 15 Credit Suisse First Boston 23 Consolidated results Credit Suisse Group 23 Consolidated income statement 24 Consolidated balance sheet 25 Selected notes 29 Risk Management Information for investors

This symbol is used to indicate topics on which further information is available on our website. Go to www.credit-suisse.com/q1results2002/bookmarks.html to findlinks to the relevant information. This additional information indicated is openly accessible and does not form part of the Quarterly Report. Some areas of CreditSuisse Group’s websites are only available in English.

Cautionary statement regarding forward-looking informationThis Quarterly Report contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that con-stitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economicperformance 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 exclu-sive 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, projectionsand 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 differmaterially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest ratefluctuations; (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 abilityof 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 socialdevelopments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries inwhich 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 thefailure 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 ouroperations; (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 opera-tions; (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 con-trol expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products andservices by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; and (xviii) 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 factorsand other uncertainties and events, as well as the risks identified in our Form 20-F and reports on Form 6-K filed with the US Securities and Exchange Commission.

http://www.credit-suisse.com/q1results2002/bookmarks.html

EDITORIAL

Lukas MühlemannChairman and Chief Executive Officer

Dear shareholders, clients and colleagues

Credit Suisse Group marked a return to profitability in thefirst quarter of 2002 despite continuing challengingmarket conditions.

The Group reported a net profit of CHF 368 million,compared with a net loss of CHF 830 million in the fourthquarter 2001. Our net operating profit, excluding theamortization of acquired intangible assets and goodwill,amounted to CHF 686 million, up 11% from the previousquarter, as operating expenses declined 6%.

These results were achieved despite unfavorableresults from the Group’s insurance businesses, where the income statement recognition of lower equity valua-tions had a negative impact of CHF 455 million whencompared with the investment return in the first quarter2001. In addition, the Group recognized another write-down of its investment in Swiss Life, amounting toCHF 154 million.

At Credit Suisse Financial Services, the PrivateBanking and Corporate & Retail Banking businessesperformed well. The Group’s insurance businessesachieved above-average growth and improved their tech-nical results. However, the continuing weak equitymarkets impacted their investment income and net profit.The strategy to invest in building our European onshoredistribution capability proved even more critical given theItalian tax amnesty. Our efforts in Italy, Germany andSpain are central to our European wealth managementfranchise.

At Credit Suisse First Boston, we saw a substantialimprovement in results due in large part to the unit’s costreduction efforts and continued strong market shares.

Credit Suisse First Boston had a number one ranking inM&A and high yield debt, and ranked fourth in equity newissuance and in debt capital markets.

The whole Group benefited from synergies andimproved efficiency as a result of the streamlining of itsstructure with the creation of two business units – CreditSuisse Financial Services, which combines our PrivateBanking, Corporate & Retail Banking, Life & Pensionsand Insurance businesses, and Credit Suisse FirstBoston, which now also includes the Group’s assetmanagement business.

Going forward, we intend to continue focusing onachieving further progress in our cost-control efforts andmaintaining our momentum in terms of growth andmarket share.

Lukas Mühlemann

May 2002

www.credit-suisse.com 1

CREDIT SUISSE GROUP F INANCIAL HIGHLIGHTS Q1/2002

Share data

Shares issued Shares repurchased

Shares outstanding

Share price in CHF

Market capitalization in CHF m

Book value per share in CHF

Share price in CHF

High Low

Earnings per share in CHF

Basic earnings per share Basic earnings per share – operating 1)

Diluted earnings per shareDiluted earnings per share – operating 1)

All share-related data have been adjusted for the 4-for-1 share split effective as of August 15, 2001.1) Excluding amortization of acquired intangible assets and goodwill as well as exceptional items of CHF 1,092 m in 4Q2001, all net of tax.

Change in %from 31.12.01

00

0

(10

(10

0

Change in %from 1Q2001

(15 (19


(74(60(74(60

)

)

) )

))))

4Q2001

71.3051.60

4Q2001

(0.700.52

(0.690.52

31.03.02

1,196,874,4647,730,000

1,189,144,464

63.75

75,808

29.99

1Q2001

87.0069.75

1Q2001

) 1.191.44

) 1.181.42

1Q2002

73.6056.50

1Q2002

0.310.580.310.57

31.12.01

1,196,609,8117,730,000

1,188,879,811

70.80

84,173

29.92


3 9


–12

–10

Share performanceSwiss Market Index (rebased) Credit Suisse Group

19981997 1999 200 2001 2002

1009080

70

60

50

40

30

20

2

Market capitalizationAs of end of reporting period (in CHF bn)

90

100

80

70

50

30

20

60

40

10

091 92 93 94 95 96 97 98 99 00 Q1/02

Financial calendar

Annual General Meeting 2002 Friday, May 31, 2002

Second quarter results 2002 Wednesday, August 14, 2002

Proposed distribution of par value reduction Wednesday, August 14, 2002

Third quarter results 2002 Thursday, November 14, 2002


Consolidated income statement in CHF m

Operating incomeGross operating profitNet operating profit 1)

Net profitCash flow

Return on equity (ROE) in %

Reported ROEOperating ROE 1)

Consolidated balance sheet in CHF m

Total assetsShareholders’ equityMinority interests in shareholders’ equity

BIS data in CHF m

BIS risk-weighted assets BIS tier 1 capital

of which non-cumulative perpetual preferred securitiesBIS total capital

BIS capital ratios in %

BIS tier 1 ratio Credit SuisseCredit Suisse First Boston 2)

Credit Suisse Group 3)

BIS total capital ratio Credit Suisse Group

Assets under management/client assets 4)in CHF bn

Advisory assets under managementDiscretionary assets under managementTotal assets under managementClient assets

Net new assets 4)in CHF bn

Net new assets

Number of employees

Switzerland bankinginsurance

Outside Switzerland banking insurance

Total employees Credit Suisse Group

1) Excluding amortization of acquired intangible assets and goodwill as well as exceptional items of CHF 1,092 m in 4Q2001, all net of tax. / 2) Ratio is based on a tier 1capital of CHF 15.1 bn (December 31, 2001: CHF 15.2 bn), of which non-cumulative perpetual preferred securities is CHF 1.1 bn (for both dates). / 3) Ratio is based on atier 1 capital of CHF 20.8 bn (December 31, 2001: CHF 21.2 bn), of which non-cumulative perpetual preferred securities is CHF 2.1 bn (for both dates). / 4) Certainrestatements have been made to prior-period amounts to conform to the current presentation.


(25(41(60(74

) (31


(71(54


50

(1


4(1(1(1

31.12.01

6.912.99.5

15.7


(40

(21


) (46


0(1(43

(1

)))))

))

)

)))

)

)

)

))

)


24511

–(3


–17

31.12.01

1,022,51338,9213,121

31.12.01

222,87421,1552,076

34,888

31.03.02

7.1 12.4 9.0

14.8

31.12.01

723.5707.1

1,430.62,138.2


(27

31.12.01

21,7726,871

28,41522,64179,699

4Q2001

8,1611,264

616(830

1,802

4Q2001

) 6.1(9.3 6.6

4Q2001

18.5

1Q2001

11,0913,1071,726

) 1,4282,535

1Q2001

) 13.916.7

31.03.02

1,070,28038,9753,077

31.03.02

232,41920,8412,058

34,366

31.03.02

696.4710.6

1,407.02,161.4

1Q2001

24.9

31.03.02

21,7636,835

27,26523,36979,232

8,1611,264

616(830

1,802

(9.36.6(12

.55.2

14.516.57.8

17.9

8,161

1,264616

(8301,802

1Q2002

8,3301,832

686368

1,745

1Q2002

4.17.7

1Q2002

13.5


AN OVERVIEW OF CREDIT SUISSE GROUP

Credit Suisse Group returned to profitability in the first quarter of 2002. The results reflecta strong performance in the Private Banking and Corporate & Retail Banking businesses,progress in costs and revenues at Credit Suisse First Boston, and good growth and good technical results in insurance offset by valuation adjustments in investment income. Net operating profit, excluding the amortization of acquired intangible assets and goodwill, totaled CHF 686 million, up 11% versus the previous quarter. The Group’s overall operating expenses decreased 6%. The Group’s asset gathering businesses recorded CHF 13.5 billion in net new assets from strong private banking flows.

In the first quarter of 2002, the Group posted a net oper-ating profit of CHF 686 million, excluding the amortizationof acquired intangible assets and goodwill, representingan increase of 11% from the fourth quarter of 2001.When compared with the first quarter 2001, a periodcharacterized by better financial market conditions, netoperating profit declined 60%. Net profit stood at CHF368 million, compared with a net profit of CHF 1.4 billionin the first quarter 2001 and a net loss of CHF 830million in the previous quarter that primarily reflectedexceptional items at Credit Suisse First Boston.

4

The Group recognized another writedown of its investmentin Swiss Life amounting to CHF 154 million.

Operating earnings per share for the first quarter of2002 stood at CHF 0.58. This compared with CHF 0.52in the fourth quarter and CHF 1.44 in the first quarter of2001. Credit Suisse Group’s annualized operating returnon equity was 7.7% in the first quarter of 2002,compared with 6.6% in the previous quarter and 16.7%in the corresponding period of 2001.

Overview of business unit results in CHF m

Operating income

Personnel expensesOther operating expenses

Operating expenses

Gross operating profit

Depreciation of non-current assets 1)

Amortization of acquired intangible assets and goodwill

Valuation adjustments, provisions and losses

Profit before extraordinary items and taxes

Extraordinary income/(expenses), net Taxes

Net profit before minority interests

Minority interests

Net profit

Reconciliation to net operating profit

Amortization of acquired intangible assets and goodwill

Exceptional itemsTax impact

Net operating profit

The Group’s consolidated results are prepared in accordance with Swiss GAAP while the Group’s segment reporting principles are applied for the presentation of thebusiness unit results. For a detailed description of the Group’s segment reporting principles please refer to our Annual Report 2001, which is available on our websitewww.credit-suisse.com, and to the footnotes to the business unit results. This presentation of the business unit results is provided to assist in evaluating the operatingperformance of the business units, which should be considered in the context of the Group’s consolidated financial statements. The difference between the business unittotals and the Credit Suisse Group figure represents the consolidation adjustments including the Corporate Center. 1) Includes amortization of Present Value of Future Profits (PVFP) from the insurance businesses within Credit Suisse Financial Services.

1Q2001

11,091

6,0301,954

7,984

3,107

483

361

238

) 2,025

) 22(572

) 1,475

(47

) 1,428

3610

) (63

1,726

)

)

)

4Q2001

8,161

4,6252,272

6,897

1,264

699

427

1,289

(1,151

) (257) 538

(870

) 40

(830

4271,428

) (409

616

1Q2002

8,330

4,8371,661

6,498

1,832

481

385

471

495

(5(87

403

(35

368

3850

(67

686

1Q2001

7,121

4,4291,451

5,880

) 1,241

220

345

92

) 584

(2)(137)

) 445

) 0

) 445

3450

) (63)

) 727

4Q2001

4,572

3,1741,747

4,921

(349

282

379

1,207

) (2,217

0633

) (1,584

(1

) (1,585

3791,428

) (410

(188

1Q2002

5,338

3,2161,302

4,518

820

207

357

338

(82

050

(32

0

(32

3570

(66

259

1Q2001

4,041

1,427874

2,301

1,740

142

17

128

1,453

2) (370)

1,085

(29)

1,056

170

) 0

1,073

4Q2001

3,582

1,2441,065

2,309

1,273

296

52

48

877

) 8) (150

735

) 22

757

520

) (1

808

1Q2002

3,306

1,443814

2,257

1,049

205

29

99

716

(3(119

594

(2

592

290

(1

620

Credit Suisse GroupCredit Suisse First BostonCredit Suisse Financial Services

274.2

Assets under management/client assets in CHF bn

Credit Suisse Financial ServicesPrivate BankingAssets under management

of which discretionaryClient assets

Corporate & Retail Banking Assets under managementClient assets

Life & Pensions Assets under management (discretionary)Client assets

InsuranceAssets under management (discretionary)Client assets

Credit Suisse Financial Services Assets under management


Credit Suisse First BostonInvestment Banking Assets under management

of which Private Equity on behalf of clients (discretionary)Client assets

CSFB Financial Services Assets under management


Credit Suisse First BostonAssets under management


Credit Suisse GroupAssets under management


Net new assets in CHF bn

Credit Suisse Financial ServicesPrivate Banking Corporate & Retail Banking Life & Pensions

Credit Suisse Financial Services

Credit Suisse First BostonInvestment Banking 1)

CSFB Financial Services 1) 2)

Credit Suisse First Boston

Credit Suisse Group

2001 figures have been restated to reflect the realignment effective as of January 1, 2002. 1) For the Investment Banking and Private Client Services businesses, measured as the balance from accounts opened minus accounts closed. / 2) Net new discretionaryassets for institutional asset management.


274.21442.0

5.61.7

(2.7 (5.3

(0.2 (0.2

(4.6 (4.6

1.02.00.5

6.74.80.0

(5.3(1.4 1.6

(4.6 (0.5 1.4

(1.6 0.51.1


0.0–

30.4

) (18.2

––

) (76.9

) (45.8

))

))

))

))

))

)

)

)

)

31.12.01

546.8131.5583.3

55.973.3

115.2115.2

30.530.5

748.4278.9802.3

41.729.3

121.7

640.5393.6

1,214.2

682.2428.2

1,335.9

1,430.6707.1

2,138.2


7.0–

66.7

(4.4

––

(62.5

(27.0

31.03.02

557.6138.8593.0

54.469.4

115.0115.0

29.129.1

756.1284.5806.5

44.530.7

121.7

606.4388.2

1,233.2

650.9426.1

1,354.9

1,407.0710.6

2,161.4

1Q2001

9.21.72.3

13.2

–11.7

11.7

24.9

4Q2001

8.6) 0.9

1.8

11.3

0.5) 6.7

7.2

18.5

1Q2002

9.2(1.4 3.0

10.8

3.5(0.8

2.7

13.5


AN OVERVIEW OF CREDIT SUISSE GROUP

Continued net new asset growthThe Group’s asset gathering businesses maintained theirgrowth momentum in the first quarter, reporting net newassets of CHF 13.5 billion or 0.9% of assets undermanagement, compared with CHF 18.5 billion or 1.4% inthe fourth quarter 2001. The Private Banking business ofCredit Suisse Financial Services accounted for CHF 9.2 billion (CHF 8.6 billion in the fourth quarter 2001).The Group’s total assets under management stood atCHF 1,407.0 billion as of March 31, 2002, a decline of1.6% from December 31, 2001, reflecting the overallweakness in the global financial markets.

Operating income and expensesOperating income amounted to CHF 8.3 billion for thefirst quarter of 2002, up 2% from the fourth quarter anddown 25% from the strong first quarter of 2001.

Operating expenses decreased 6% from the previousquarter to CHF 6.5 billion, and declined 19% from thefirst quarter 2001, reflecting a Group-wide commitmentto reducing costs. At Credit Suisse Financial Services,synergies derived from the new structure — whichcombines Private Banking, Corporate & Retail Banking,Life & Pensions and Insurance into a single business unit— contributed to a 2% decrease in operating expensesfrom the fourth quarter 2001. Compared with the firstquarter 2001, Credit Suisse First Boston’s overall operat-ing expenses were down 26% in US dollar terms.

Main drivers of business unit results Within Credit Suisse Financial Services, the Private Bank-ing business performed well in the first quarter, reportingCHF 9.2 billion in net new assets and a 9% increase innet operating profit before minority interests to CHF 634million quarter-on-quarter. This was achieved in spite ofchallenging market conditions and a lower volume ofsecurities transactions. The Corporate & Retail Bankingbusiness also achieved good results, with net operatingprofit before minority interests up 167% from the fourthquarter, to CHF 120 million, and an improvement in theoperating cost/income ratio to 60.6%. The Life &Pensions and Insurance businesses continued their solidgrowth momentum in the first quarter, reporting organicpremium growth rates of 11% and 10%, respectively,compared with the first quarter 2001 and improving theirtechnical results. First quarter results were, however,negatively impacted by lower investment income. Thiswas due to the income statement recognition of lowervaluations over the past three quarters of equity securitiesheld in the investment portfolios. Life & Pensionsreported a net operating profit before minority interests of CHF 15 million and Insurance recorded a net operatingloss before minority interests of CHF 147 million in thefirst quarter. The Credit Suisse Financial Services busi-ness unit recorded a net operating profit, excluding theamortization of acquired intangible assets and goodwill, ofCHF 620 million in the first quarter of 2002, representing

6

a decrease of 23% compared with the previous quarter. Credit Suisse First Boston successfully maintained itsmarket shares in the first quarter. The strict implementationof cost reduction measures – including headcount reduc-tions and reduced incentive compensation in particular –as well as increased revenues, produced a significantimprovement in Credit Suisse First Boston’s results versusthe previous quarter. The business unit had a net operatingprofit, excluding the amortization of acquired intangibleassets and goodwill as well as exeptional items, of USD155 million (CHF 259 million) versus a net operating lossof USD 114 million (CHF 188 million) in the previousquarter. The Investment Banking segment – comprising theFixed Income, Equity and Investment Banking divisions –reported a healthy increase in operating income of 27%quarter-on-quarter to USD 2.7 billion (CHF 4.6 billion). TheCSFB Financial Services segment reported operatingincome of USD 536 million (CHF 901 million) in the firstquarter, down 10% from the fourth quarter and down 19%from the first quarter 2001, partly reflecting its divestitureof non-core businesses. Credit Suisse Asset Management,which has been integrated into this segment, also sawrevenues decline in comparison with the strong fourthquarter of 2001.

Capital allocation As of January 1, 2002, the Group changed its capitalallocation methodology for its banking businesses to bemore closely aligned with the capital used in the respec-tive segments. Capital is allocated based on the higher ofthe capital adequacy rules set by regulators, the require-ments to maintain certain ratings and the correspondingexpectations of other market constituencies (respectabilitycapital), or the capital requirement as defined in our ownEconomic Risk Capital model. The goodwill associatedwith the acquisitions is held at Corporate Center level.The Group expects to further refine the capital methodol-ogy for insurance during the year.

OutlookAs the challenging market conditions continue into 2002,Credit Suisse Group remains cautious in its outlook for theremainder of the year and expects revenue levels at CreditSuisse First Boston to be lower than in 2001 and earningsat Credit Suisse Financial Services not to exceed 2001levels. However, the Group is confident about the long-termprospects for its core businesses and will continue to focuson controlling costs and achieving growth in key markets.

REVIEW OF BUSINESS UNITS CREDIT SUISSE FINANCIAL SERVICES

Credit Suisse Financial Services performed well across all businesses in the first quarter of2002. The business unit reported a net operating profit, excluding the amortization ofacquired intangible assets and goodwill, of CHF 620 million, down 23% versus the previousquarter and down 42% versus the first quarter 2001. This decline is primarily attributable to an unusually low investment income from the insurance units. Net profit totaled CHF 592million. Assets under management rose 1.0% to CHF 756.1 billion in the first quarter as aresult of CHF 10.8 billion in net new assets.

As of January 1, 2002, Credit Suisse Financial Servicescomprises the Group’s global Private Banking businessand Corporate & Retail Banking business in Switzerland,as well as the two insurance units, Life & Pensions andInsurance.

Credit Suisse Financial Services recorded a net oper-ating profit, excluding the amortization of acquired intangi-ble assets and goodwill, of CHF 620 million in the firstquarter 2002. The business unit’s Private Banking andCorporate & Retail Banking segments performed well,and the Life & Pensions and Insurance segments main-tained their growth momentum while, at the same time,improving their technical results.

The decline in net operating profit, excluding theamortization of acquired intangible assets and goodwill, of23% versus the fourth quarter and of 42% versus the

first quarter 2001 is primarily attributable to an unusuallylow investment return from the insurance businesses.This was due to the income statement recognition oflower valuations over the past three quarters of equitysecurities held in the investment portfolios. This resultedin a CHF 643 million decline in operating income and aCHF 455 million decline in net operating profit, excludingthe amortization of acquired intangible assets and good-will, compared with the first quarter 2001. As the currentvalue of securities holdings are already reflected in thebalance sheet of the insurance unit, the above describedincome statement recognition of lower equity valuationsdoes not impact insurance or Group capital.

The synergies arising from the new structure of CreditSuisse Financial Services, as well as lower provisions forincentive compensation and cost reduction measures, led

Credit Suisse Financial Services business unit income statement in CHF m

Operating income


Operating expenses


Depreciation of non-current assets Amortization of Present Value of Future Profits (PVFP)Valuation adjustments, provisions and losses

Net operating profit before extraordinary items and taxes

Extraordinary income/(expenses), net Taxes 1)

Net operating profit before minority interests

Amortization of acquired intangible assets and goodwillTax impact


Minority interests

Net profit

Reconciliation to net operating profitAmortization of acquired intangible assets and goodwillTax impact


For further information on the presentation of business unit results, please refer to the “Overview of business unit results” on page 4. 2001 figures have been restated toreflect the realignment effective as of January 1, 2002. The business unit income statement differs from the presentation of the Group’s consolidated results in excludingamortization of Present Value of Future Profits (PVFP) from depreciation of non-current assets.1) Excluding tax impact on amortization of acquired intangible assets and goodwill.


) (18

1) (7

) (2

) (40

) 62) 2

(23

) (49

–) (68

) (44

) 71–

) (45

(93

) (44

) 71–

) (42

)

)

)

)

)

)

)

)

)

)

)

)


3,23(8

16(24

(2

(18

(26(45106

(20

–) (21

(21

) (44 –

(19

) –

(22

(44 –

(23

1Q2001

4,041

1,427874

2,301

1,740

10042

128

1,470

2) (370

1,102

) (17 0

1,085

(29

1,056

17) 0

1,073

4Q2001

3,582

1,2441,065

2,309

1,273

2187848

929

) 8) (151

786

) (52 1

735

) 22

757

52) (1

808

1Q2002

3,306

1,443814

2,257

1,049

1624399

745

(3 (120

622

(29 1

594

(2

592

29(1

620



Overview of Credit Suisse Financial Services business unit in CHF m

1Q2002

Operating income 1)

Personnel expenses Other operating expenses

Operating expenses


Depreciation of non-current assets Amortization of Present Value of Future Profits (PVFP)Valuation adjustments, provisions and losses




Amortization of acquired intangible assets and goodwillTax impact


Minority interests

Net profit

Reconciliation to net operating profitAmortization of acquired intangible assets and of goodwillTax impact


Average allocated capital 3)

For further information on the presentation of business unit results, please refer to the “Overview of business unit results” on page 4. The presentation of segment results differs fromthe presentation of business unit results by excluding acquisition-related costs and minority interests, and reporting these items at business unit level only.1) 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, lesscommissions, plus net investment income from insurance business. Expenses for handling both claims and investments include: personnel expenses Life & Pensions: CHF 30 m,Insurance CHF 138 m; other operating expenses Life & Pensions: CHF 14 m, Insurance: CHF 69 m. / 2) Excluding tax impact on amortization of acquired intangible assets and good-will. / 3) New definition based on revised capital allocation methodology, as described on page 6.

Credit Suisse Financial Services key information

Cost/income ratio (operating) 1) 2)

Cost/income ratio, (operating) banking 1)

Return on average allocated capitalReturn on average allocated capital (operating) 1)

Average allocated capital in CHF m 3)

Growth in net operating profit 1)

Growth in assets under managementof which net new assetsof which market movement and structural effectsof which acquisitionof which discretionary

Assets under management in CHF bn

Number of employees

1) Excluding amortization of acquired intangible assets and goodwill. / 2) Excluding amortization of Present Value of Future Profits (PVFP) from the insurance businesses withinCredit Suisse Financial Services. / 3) New definition based on revised capital allocation methodology, as described on page 6.

4Q2001

70.5%

65.7%

24.2%25.8%12,170

) (20.2%

5.8%1.6%3.8%

) 0.4%2.6%

31.03.02

756.1

52,053

1Q2002

73.2%

56.9%

19.1%20.0%12,431

(42.2%

1.0%1.4%

–(0.4%0.7%

1Q2001

59.4%

56.5%

28.6%29.0%15,177

) (10.1%

2.0%1.8%

(0.4%0.6%

n/a

31.12.01

748.4

51,206

)

)

Insurance

441

385197

582

(141

4620

) (189

042

(147

Credit Suisse

Financial Services

3,306

1,443814

2,257

) 1,049

1624399

) 745

(3 (120

) 622

(29 1

594

(2

592

29(1

620

12,431

))

)

)

)

)

Life &Pensions

415

211140

351

64

45410

(22

) 0) 37

15

Corporate &Retail

Banking

616

223132

355

261

18–

85

158

) (1 ) (37

120

3,972

Private Banking

1,834

624345

969

865

53–

14

798

(2 (162

634

3,484 4,975

8

Private Banking income statement in CHF m

Net interest incomeNet commission and service fee incomeNet trading incomeOther ordinary income

Operating income


Operating expenses


Depreciation of non-current assets Valuation adjustments, provisions and losses 1)


Extraordinary income/(expenses), net Taxes


Increased/(decreased) credit-related valuation adjustments 1)

2001 figures have been restated to reflect the realignment effective as of January 1, 2002. The presentation of segment results differs from the presentation of businessunit results by excluding acquisition-related costs and minority interests, and reporting these items at business unit level only. 1) Increased/decreased valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.

4Q2001

5001,060

15322

1,735

570420

990

745

99(41

687

) 8) (116

579

(6

Changes in %from 1Q2001

) (14 4

(13 ) (91

(6

(2 ) (4

) (3

(9

) 43(73

(7

–(25

(2 1

)

))

)

))

)

)

)

)

)

)

Changes in %from 4Q2001

(12 161

(73

6

9(18

(2

16

(46

–16

–) 40

9

) 152

1Q2001

5101,186

17967

1,942

636358

994

948

37) 51

860

0) (216

644

) (4

1Q2002

4401,233

1556

1,834

624345

969

865

5314

798

(2 (162

634

2

Private Banking balance sheet information in CHF m

Total assets

Due from customersMortgages

31.12.01

170,364

31,41042,008

31.03.02

168,361

31,26141,808


(1

00

)

to a decrease in operating expenses of 2% versus both theprevious quarter and the corresponding period of 2001.About 40% of the previously announced CHF 350 millionto CHF 400 million in potential improvements to results for2002 had already been realized in the first quarter.

Assets under management rose by 1.0% to CHF756.1 billion as of end-March 2002. Due to the success-ful launch of innovative products, net new assets of CHF 10.8 billion were recorded, exceeding the quarterlyaverage for 2001. This corresponded to 5.8% growth ofassets under management on an annualized basis.

Private BankingAs of January 1, 2002, the Private Banking segment alsoincludes Personal Finance, which was previously reportedseparately, as well as the “affluent clients” segment inSwitzerland. In markets within Europe (the UK, France,Germany, Spain and Italy), Credit Suisse brought thePersonal Finance unit and traditional onshore privatebanking business together under joint management in theform of the European Financial Services Initiative. Prior-period figures have been restated accordingly.

The Private Banking segment posted a net operatingprofit before minority interests of CHF 634 million in thefirst quarter of 2002. This corresponded to a rise of 9%

compared with the previous quarter and a decline of 2%on the corresponding period of 2001. Operating incomerose 6% quarter-on-quarter, but was down 6% versus thestrong first quarter 2001 as the successful sale of newstructured financial products did not fully offset thereduced income from the lower securities transactionvolumes. Operating expenses decreased 2% versus thefourth quarter 2001 due to a reduction in other operatingexpenses, more than offsetting an increase in personnelcosts. Operating expenses were down 3% compared withthe first quarter 2001. The net margin on assets undermanagement rose to 46.0 basis points from 43.6 in theprevious quarter (47.6 basis points in the first quarter2001). Net new assets totaled CHF 9.2 billion or 6.7%of assets under management on an annualized basis andwere thus above the previous year’s quarterly average.Assets under management rose 2.0% versus year-end2001, to CHF 557.6 billion.

The business unit opened new branches inGermany, Spain and Italy, and now has a presence in 63locations within these three countries. The Italian taxamnesty program has resulted in a movement of assetsfrom offshore Switzerland to onshore Italy. With thewealth management program developed over the pastthree years in Italy, Credit Suisse has been well positioned




Private Banking key information

Cost/income ratio (operating) 1)


Pre-tax margin (operating) 1)

Fee income/operating income

Net new assets in CHF bnof which European Financial Services Initiative

Growth in assets under managementof which net new assetsof which market movement and structural effectsof which acquisitions

Net operating profit before minority interests/average AuM 1)

Assets under management in CHF bnof which European Financial Services Initiative

Number of employees

Number of advisors European Financial Services Initiative

Number of clients European Financial Services Initiative

1) Excluding amortization of acquired intangible assets and goodwill. / 2) New definition based on revised capital allocation methodology, as described on page 6.

1Q2001

53.1%

3,167

44.3%

61.1%

9.20.8

1.5%1.7%

(0.9%0.7%

47.6 bp

31.12.01

546.820.9

14,952

677

41,419

)

4Q2001

62.8%

3,233

40.1%

61.1%

8.60.9

6.2%1.7%4.0%0.5%

43.6 bp

31.03.02

557.623.9

15,176

658

45,494

1Q2002

55.7%

3,484

43.4%

67.2%

9.23.2

2.0%1.7%0.3%

–

46.0 bp

to compete for these assets. A net loss of CHF 2 to 3billion in assets is expected in the process of the Italiantax amnesty. In total, the European Financial ServicesInitiative reported CHF 3.2 billion in net new assets, ofwhich 80% relate to the Italian market.

Credit Suisse further expanded its business in theattractive Asian and Middle Eastern markets. The GlobalPrivate Banking Centre launched in Singapore inDecember continued to attract new clients. The success-ful launch of the Global Investment Program (GIP) underpinned Credit Suisse’s image as an innovativeprovider of structured financial products.

Corporate & Retail BankingThe business unit’s Swiss Corporate & Retail Bankingsegment reported a net operating profit before minorityinterests of CHF 120 million, corresponding to anincrease of 167% versus the previous quarter and of15% versus the first quarter 2001. Operating incomerose 6% compared with the fourth quarter and was down3% on the first quarter 2001. The new structure of thebusiness unit and lower provisions for incentive compen-sation led to a significant decrease in costs versus thefourth and first quarters of the previous year. This resultedin a healthy improvement in the operating cost/incomeratio to 60.6% from 74.6% in the previous quarter and67.0% in the first quarter 2001. The return on averageallocated capital in the first quarter 2002 was 12.1%.Despite the challenging market environment, asset qualityimproved owing to the continued reduction of all the non-performing loan positions in the portfolio.

10



Corporate & Retail Banking income statement in CHF m


Operating income


Operating expenses






Increased/(decreased) credit-related valuation adjustments 1)

2001 figures have been restated to reflect the realignment effective as of January 1, 2002. The presentation of segment results differs from the presentation of businessunit results by excluding acquisition-related costs and minority interests, and reporting these items at business unit level only.1) Increased/decreased valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions. / 2) Excluding taximpact on amortization of acquired intangible assets and goodwill.

4Q2001

413108602

583

235161

396

187

3989

59

) 0) (14

45

) 16


1(6

) (22 (12

(3

) (12 ) (18

) (14

17

) 38) 10

19

–19

15

)))

)

))

)


313

(12 –

6

(5 (18

(10

40

(54 (4

168

–) 164

167

)

1Q2001

4211306817

636

252161

413

223

1377

133

2) (31

104

(28

1Q2002

4261225315

616

223132

355

261

1885

158

(1 (37

120

(6

Corporate & Retail Banking balance sheet information in CHF m

Total assets

Due from customersMortgages

Due to customers in savings and investment depositsDue to customers, other

Corporate & Retail Banking key information

Cost/income ratio (operating) 1)

Return on average allocated capital (operating) 1)


Pre-tax margin (operating) 1)

Personnel expenses/operating income

Net interest margin

Loan growth

Net new assets in CHF bn

Deposit/loan ratio


Number of employees

Number of branches

1) Excluding amortization of acquired intangible assets and goodwill. / 2) New definition based on revised capital allocation methodology, as described on page 6.

Change in % from 31.12.01

(2

33

(1(8

1Q2001

67.0%

10.8%3,846

21.2%

39.6%

229 bp

0.6%

1.7

31.12.01

74.2%

55.9

6,742

227

)

))

31.12.01

72,372

28,88934,279

17,63129,218

4Q2001

74.6%

4.6%3,901

10.1%

40.3%

228 bp

0.2%

) 0.9

31.03.02

67.8%

54.4

6,673

226

31.03.02

70,644

29,79135,458

17,50226,757

1Q2002

60.6%

12.1%3,972

25.5%

36.2%

238 bp

3.3%

(1.4



Life & Pensions income statement in CHF m

Gross premiums writtenReinsurance ceded

Net premiums written

Change in provision for unearned premiums

Net premiums earned

Death and other benefits incurredChange in provision for future policyholder benefits (technical)Change in provision for future policyholder benefits (separate account) 1)

Dividends to policyholders incurredOperating expenses, net (incl. commissions paid)Investment income general accountInvestment income separate account 1)

Interest received on deposits and bank accountsInterest on bonuses credited to policyholdersOther interest paidOther income/(expenses) (including foreign exchange impact)

Net operating profit before taxes and minority interests

Taxes


The segment’s income statement differs from the presentation of business unit results as it reflects the way the insurance business is managed, which is in line with Life &Pensions’ peers in the insurance industry. Amortization of acquired intangible assets and goodwill are excluded from ‘Operating expenses’ and are reported, like minorityinterests, at business unit level only.1) This represents the market impact for separate account (or unit-linked) business, where the investment risk is borne by the policyholder.

4Q2001

4,899) (61

4,838

) (5

4,833

) (3,234) (2,059) (652

458) (452

66365224

) (36) (91

2

) 108

(28

80

1Q2002

6,762(96

6,666

(39

6,627

(3,813 (3,289

(141 135

(424 79214123

(29 (50

6

(22

37

15


988

9

179

8

319

) –) –) 14

(46) –) 77) (9 ) 35

–

–

–

) (93

)

)

)


38) 57

38

) –

37

) 18) 60

(78) (71 ) (6

19) (78

(4 ) (19 ) (45 ) 200

–

) –

(81

1Q2001

6,189) (51

6,138

) (14

6,124

) (3 686 ) (2,765 ) 671

(403 ) (372

1,464(671

13) (32 ) (37

(39

267

) (63

204

Life & PensionsIn the first quarter 2002, the business unit’s Life &Pensions segment reported an 11% increase in grosspremiums to CHF 6.8 billion versus the correspondingperiod of 2001, including adjustments for divestitures inAustria and France. This growth reflects the positivedevelopment of the single premiums business in Italy andhigher volumes in Switzerland, as well as strong growth inthe UK, Belgium and Hong Kong. Net new assets totaledCHF 3.0 billion in the first quarter, compared with CHF2.3 billion in the corresponding period of 2001.

Despite this good performance, net operating profitbefore minority interests declined to CHF 15 million. Thisdecrease of CHF 189 million compared to the first quarterof 2001 is primarily the result of an unusually low invest-ment income. First quarter results were impacted by theincome statement recognition of lower valuations of equitysecurities held in the insurance portfolios. Net investmentincome excluding separate account business consequentlydeclined CHF 672 million or 46% versus the first quarter2001, and the impact on net operating profit beforeminority interests amounted to CHF 150 million.

Following its withdrawal from the Austrian and Frenchmarkets, the Life & Pensions segment is continuingto focus on selected markets in Europe and Asia offeringhigh growth and earnings potential, while further diversify-ing its product portfolio. Throughout 2002, Life &Pensions will be placing a particular emphasis on devel-oping innovative solutions for clients from other divisionswithin Credit Suisse Financial Services.

12

InsuranceThe business unit’s Insurance segment increased its netpremiums earned by 4% compared with the first quarterof 2001. Adjusted for divestitures (Winterthur Interna-tional, and in France and Austria) and acquisitions (inthe UK and Belgium), the Insurance segment recorded10% premium growth, which is attributable to an increasein rates and the positive development of new business. Inthe UK market and in Belgium, Spain and Germany, theInsurance segment recorded double-digit growth rates inthe period under review.

In the first quarter 2002, the combined ratio improvedby 2.5 percentage points to 103.9% versus the correspon-ding period of 2001, as the claims ratio fell by more than2 percentage points, to 75.2%, within one year. Quarter-on-quarter, the claims ratio rose 0.4 percentage points, whilea seasonal rise in claims within Europe offset the clearprogress achieved in North America. Despite considerablecosts incurred in the acquisition of new business, theoverall expense ratio for the first quarter fell by 0.3 percent-age points versus the corresponding period of 2001.

In spite of a significant improvement in its underwritingresult, the Insurance segment reported a net operatingloss before minority interests of CHF 147 million in thefirst quarter owing to an unusually low investment return.The results were affected by the income statementrecognition of lower valuation of equity securities. Netinvestment income thus declined CHF 442 million or84% versus the first quarter 2001, and the impact on netoperating profit amounted to CHF 305 million.



Life & Pensions key information

Expense ratio 1)

Growth in gross premiums written

Return on invested assets (excluding separate account)Current incomeRealized gains/losses and other income/expensesTotal return on invested assets 2)

Net new assets in CHF bn 3)

Total sales in CHF m 4)

Assets und management in CHF bn 5)

Technical provisions in CHF m

Number of employees

1) Operating expenses/net premiums earned. / 2) Total investment return on invested assets includes depreciation on real estate and investment expenses as well asinvestment income and realized gains and losses. / 3) Based on change in technical provisions for traditional business, adjusted for technical interests; net inflow of unit-linked business; and change in off-balance sheet business such as funds. / 4) Includes gross premiums written and off-balance sheet sales. / 5) Based on savings-relatedprovisions for policyholders plus off-balance sheet assets.

1Q2001

6.1%

18.5%

4.4%) 1.8%

6.2%

2.3

7,462

31.12.01

115.2

108,326

7,697

4Q2001

9.4%

16.0%

4.1%) (1.6%

2.5%

1.8

6,172

31.03.02

115.0

109,890

7,417

1Q2002

6.4%

9.3%

4.0%(0.8%3.2%

3.0

7,783



Insurance income statement in CHF m

Gross premiums writtenReinsurance ceded

Net premiums written

Change in provision for unearned premiums and in provision for future policy benefits (health)

Net premiums earned

Claims and annuities incurred, netDividends to policyholders incurred, netOperating expenses, net (incl. commissions paid)

Underwriting result, net

Net investment incomeInterest received on deposits and bank accountsInterest paidOther income/(expenses) (including foreign exchange impact)

Net operating profit before taxes and minority interests

Taxes


The segment’s income statement differs from the presentation of business unit results as it reflects the way the insurance business is managed, which is in line with peersin the insurance industry. Amortization of acquired intangible assets and goodwill are excluded from ‘Operating expenses’ and are reported, like minority interests, at busi-ness unit level only.

Insurance key information

Combined ratio (excluding dividends to policyholders)

Claims ratio

Expense ratio

Return on invested assetsCurrent incomeRealized gains/losses and other income/expensesTotal return on invested assets 1)


Technical provisions in CHF m

Number of employees

1) Total investment return on invested assets includes depreciation on real estate and investment expenses as well as investment income and realized gains and losses.

Change in %from Q12001

(2 (31

1

(2

) 4

) 1(40

3

(38

) (84 129

) (27 ) –

–

–

–

1Q2001

106.4%

77.4%

29.0%

4.6%1.7%6.3%

31.12.01

30.5

27,738

21,815

))

)

)

)

)

)

4Q2001

3,685) (209

3,476

) 319

3,795

) (2,837) (50) (1,081

) (173

503(4

) (35) (216

) 75

7

) 82

1Q2002

56,668(415

6,253

(2,502

3,751

(2,819 (67

(1,077

(212

8716

(19 (61

(189

42

(147

Change in %from Q42001

81) 99

80

) –

(1

) (1 ) 34) 0

) 23

(83 –

) (46 (72

–

) 500

–

4Q2001

103.3%

74.8%

28.5%

3.9%) 2.4%

6.3%

31.03.02

29.1

30,603

22,787

1Q2001

6,774) (601

6,173

(2,556

3,617

) (2,799) (112) (1,049

) (343

529) 7) (26) 43

210

(60

150

1Q2002

103.9%

75.2%

28.7%

3.9%(2.7%1.2%

14

REVIEW OF BUSINESS UNITS CREDIT SUISSE FIRST BOSTON

Credit Suisse First Boston’s first quarter 2002 results reflect the cost reduction measures implementedand an improved performance in the Investment Banking segment. Excluding the amortization ofacquired intangible assets and goodwill as well as exceptional items, net operating profit stood at USD155 million (CHF 259 million), compared with a net operating loss of USD 114 million (CHF 188 million) in the fourth quarter of 2001, corresponding to an increase of USD 269 million(CHF 447 million).

Credit Suisse First Boston reported a net loss of USD 19 million (CHF 32 million) in the first quarter of2002, compared with a net loss of USD 939 million(CHF 1.6 billion) in the final quarter of 2001. In the firstquarter of the previous year, Credit Suisse First Bostonreported a net operating profit, excluding the amortizationof acquired intangible assets and goodwill, of USD 444 million (CHF 727 million) and a net profit of USD272 million (CHF 445 million).

The new organizational structure as of 2002 is dividedinto two reporting segments: Investment Banking, which includes the Fixed Income, Equity and InvestmentBanking divisions; and CSFB Financial Services, which

includes Credit Suisse Asset Management, Pershing andPrivate Client Services. Prior-period results have beenrestated accordingly.

In line with its strategy to exit non-core businesses,Credit Suisse First Boston announced the sale of most of its CSFBdirect business and its brokerage service subsidiary, Autranet, Inc. at the end of 2001.These sales closed during the first quarter of 2002.

Operating income in the first quarter increased 19%compared with the previous quarter to USD 3.3 billion(CHF 5.5 billion), reflecting improvements in the Invest-ment Banking segment. Compared with the first quarterof 2001, operating income was down 27%, with lower

Credit Suisse First Boston business unit income statement in USD m

Operating income


Operating expenses



Net operating profit before extraordinary items, acquisition-related costs, exceptional items and taxes


Net operating profit before acquisition-related costs, exceptional items and minority interests

Acquisition interest Amortization of retention paymentsAmortization of acquired intangible assets and goodwill Exceptional itemsTax impact


Minority interests

Net profit

Reconciliation to net operating profitAmortization of acquired intangible assets and goodwillExceptional itemsTax impact


See page 16 for footnotes.

)

))

)

)

)

)

)

)

))

)

)

4Q2001

2,757

1,1241,016

2,140

617

157477

(17

0) 55

38

) (100) (128) (222

(845319

) (938

(1

) (939

222845

) (242

(114

Change in%from 1Q2001

(27

(30) (12

(26

(33

) (8) 261

(56

–(62

(54

) (39) (9) 1

–) (15

) –

–

) –

) 1–

) 3

(65

Change in % from 4Q2001

19

61(24

21

12

(22(58

–

) –) –

–

) (1) (16) (4

–(65

(98

–

(98

(4–

) (84

–

1Q2001

4,505

2,583885

3,468

1,037

13356

) 848

(2(214

632

) (163) (118) (210) 0

131

) 272

) 0

) 272

2100

) (38

) 444

1Q2002

3,277

1,808775

2,583

694

123202

369

0(81

288

(99(107(213

0112

(19

0

(19

2130

(39

155



Credit Suisse First Boston business unit income statement in CHF m

Operating income


Operating expenses






Acquisition interest Amortization of retention paymentsAmortization of acquired intangible assets and goodwill Exceptional itemsTax impact


Minority interests

Net profit



For further information on the presentation of business unit results, please refer to the “Overview of business unit results” on page 4. 2001 figures have been restated toreflect the realignment effective as of January 1, 2002. The business unit income statement differs from the presentation of the Group’s consolidated results in a) includ-ing brokerage, execution and clearing expenses as part of other operating expenses in common with certain US competitors, rather than netted against operating incomeand reporting expenses for contractors as part of operating expenses instead of personnel expenses, b) excluding acquisition-related costs of acquisition interest andamortization of retention payments from operating income and personnel expenses, respectively, and reporting these items separately in the income statement, c) deductingminority interests from operating income d) excluding exceptional items from operating income, personnel expenses, depreciation of non-current assets and valuationadjustments, provisions and losses and reporting these items separately in the income statement. 1) The amounts in 4Q2001 and 1Q2001 include valuation adjustments taken at Group level of CHF 112 m (USD 66 m) and CHF 24 m (USD 15 m), respectively, result-ing from the difference between the statistical and actual credit provisions. Starting January 1, 2002, no such adjustments will be recorded within Credit Suisse FirstBoston and the amount reported for 1Q2002 reflects actual credit provision. / 2) Excluding tax impact on acquisition-related costs and exceptional items.

)

))

)

)

)

)

)

)

))

)

)

)

4Q2001

4,781

1,9691,747

3,716

1,065

270810

(15

0) 90

75

) (175) (220) (379

(1,428543

) (1,584

(1

) (1,585

3791,428

) (410

(188

Change in%from 1Q2001

(25

(28) (10

(24

(32

) (6) 267

(55

–(61

(53

) (38) (8) 3

–) (13

) –

–

) –

) 3–

) (5

(64


15

54(25

17

9

(23(58

–

) –) –

–

) (5) (19) (6

–(66

(98

–

(98

(6–

) (84

–

1Q2001

7,389

4,2351,451

5,686

1,703

22092

) 1,391

(2(353

1,036

) (268) (194) (345) 0

216

) 445

) 0

) 445

3450

) (63

) 727

1Q2002

5,505

3,0371,302

4,339

1,166

207338

621

0(137

484

(167(179(357

0187

(32

0

(32

3570

(66

259

equity and investment banking revenues reflecting thedownturn in the markets during the second half of 2001and into 2002, and lower fixed income revenues in linewith a more stable, rather than a declining, interest rateenvironment.

In accordance with Credit Suisse First Boston’scommitment to cost reduction, first quarter operatingexpenses were 26% below those of the comparableperiod in 2001. Compensation costs declined 30%,chiefly due to headcount reductions and reduced incen-tive compensation costs. Other operating costs decreasedby 12%, reflecting declines in virtually all discretionaryexpenses, particularly in technology and communication,and occupancy costs. Compared with the fourth quarter2001, compensation costs excluding bonus accrualsdeclined by 10%; however, incentive compensation in-

16

creased as a result of over-accruals in the first ninemonths and the classification of incentive compensationexpenses paid in connection with staff reductions as anexceptional item.

Assets under management, including private equityassets held on behalf of clients, totaled USD 387.9 billion (CHF 650.9 billion) as of March 31, 2002. Netnew assets in the first quarter totaled USD 1.6 billion (CHF 2.7 billion). Discretionary assets under manage-ment as of March 31, 2002, were USD 253.9 billion(CHF 426.1 billion), virtually unchanged versus December 31, 2001. Advisory assets under manage-ment as of March 31, 2002, were USD 134.0 billion(CHF 224.8 billion), a decrease of 11.6% againstDecember 31, 2002, primarily related to the sale ofCSFBdirect.


Credit Suisse First Boston key information Based on CHF amounts

Cost/income ratio (operating) 1) 2) 3) 4)

Return on average allocated capitalReturn on average allocated capital (operating) 3) 4)

Return on average allocated capital (operating, excluding amortization of retention payments, net of tax) 2) 3) 4)


Pre-tax margin 3)

Pre-tax margin (operating) 3) 4)

Pre-tax margin (operating, excluding acquisition interest and amortization of retention payments) 1) 2) 3) 4)

Personnel expenses/operating income 1) 2) 3)

Number of employees

1) Excluding acquisition interest. / 2) Excluding amortization of retention payments. / 3) Excluding exceptional items. / 4) Excluding amortization of acquired intangible assets andgoodwill. / 5) New definition based on revised capital allocation methodology, as described on page 6.

1Q2001

79.9%

11.4%18.6%

21.8%

15,625

7.9%12.5%18.8%

57.3%

31.12.01

27,302

4Q2001

83.4%

(42.6%)(5.0%)

(1.2%)

14,877

(16.5%)(8.6%)(0.3%)

41.2%

31.03.02

25,970

1Q2002

82.6%

(0.9%)6.9%

10.1%

14,913

(1.5%)5.0%

11.3%

55.2%

Investment Banking segmentThe Investment Banking segment reported first quarteroperating income of USD 2.7 billion (CHF 4.6 billion), up 27% compared with the fourth quarter and down 29%compared with the first quarter of 2001. As a result ofthe cost reduction measures implemented, first quarteroperating expenses were down 26% to USD 2.2 bilion(CHF 3.6 billion), compared with the same period a year ago.

Fixed Income revenues increased 36% on the previ-ous quarter to USD 1.2 billion (CHF 1.9 billion), with themost significant increase reported in the developed creditmarkets business. This area continued to benefit asinvestors looked to shift single name credit exposure tomore diversified instruments. Credit Suisse First Bostoncurrently ranks number one globally in asset-backedsecuritizations (13% market share). The revenues of theemerging markets group also rebounded from the priorquarter, which had been adversely impacted by lossesrelated to Argentina. In emerging markets debt, the rank-ing improved from fifth to third place, with market shareincreasing to 14% (8% in 2001). The revenues of theleveraged and bank finance business also increased, withthe top ranking maintained in high yield new issues. The

global high yield new issuance industry volume rose 15%compared with the fourth quarter. The revenues of theinterest rate products business, which had benefited fromseveral rate cuts in 2001, declined in the first quarter.Compared with the first quarter 2001, one of FixedIncome’s strongest quarters on record, first quarterrevenues declined 28%. Credit Suisse First Boston alsosaw its North American fixed income research standingimprove from ninth place in the first quarter of 2001 tothird.

Equity business revenues increased 22% quarter-on-quarter to USD 855 million (CHF 1.4 billion), primarily asa result of the rebound in the equity derivatives businessand increased new issue activity late in the first quarter.Revenues were down 35% compared with the first quar-ter 2001 due to reduced volatility and narrowing spreadson derivative instruments, continuing sluggish markets,reduced commission margins and reduced new issueactivity.

The Investment Banking division’s first quarter revenues increased 18% compared with the previousquarter to USD 695 million (CHF 1.2 billion). Therevenue increase was largely related to a gain on the sale of a strategic investment within the private equity



Overview of Credit Suisse First Bostonbusiness unit 1Q2002

Operating income


Operating expenses


Depreciation of non-current assets Valuation adjustments, provisions and losses




Acquisition interestAmortization of retention paymentsAmortization of acquired intangible assets and goodwillExceptional itemsTax impact


Minority interests

Net profit



Average allocated capital 2)

For further information on the presentation of business unit results, please refer to the “Overview of business unit results” on page 4. The presentation of segment results differs from the presentation of business unit results by excluding acquisition-related costs, exceptional items and minority interests, and reporting these items at business unit level only.1) Excluding tax impact on acquisition-related costs and exceptional items. / 2) New definition based on revised capital allocation methodology, as described on page 6.

)

)))

)

)

)

Credit SuisseFirst Boston

3,277

1,808775

2,583

694

123202

369

0) (81

288

(99(107(213

0112

(19

0

(19

2130

(39

155

8,894

CSFB FinancialServices

536

258157

415

121

213

97

0) (27

70

655

InvestmentBanking

2,741

1,550618

2,168

573

102199

272

0(54

218

8,462


5,505

3,0371,302

4,339

1,166

207338

621

0) (137

484

(167(179(357

0187

(32

0

(32

3570

(66

259

14,913

CSFB FinancialServices

901

434263

697

204

365

163

0) (46

117

1,098

InvestmentBanking

4,604

2,6031,039

3,642

962

171333

458

0) (91

367

)))

)

)

)

14,188

in CHF min USD m

business, and was partially offset by decreased revenuesgenerated from mergers and acquisitions and equity new issues. These businesses were adversely impactedby industry-wide volume declines of 31% and 23%,respectively. Compared with the same period in 2001, the division’s first quarter 2002 revenues declined by16%, principally due to lower M&A advisory revenue. The value of the industry’s global announced M&A dealsin the first quarter of 2002 decreased significantly – bymore than 45% versus the same period in 2001.However, Credit Suisse First Boston has achieved aglobal number one ranking in terms of both US dollarvalue and number of transactions, and 25% market sharefor its announced 2002 M&A deals, versus a rank ofnumber six for the first quarter of 2001.

The private equity business recorded net realized and unrealized gains of USD 29 million (CHF 48 million)

18

in the first quarter, compared with net realized and unrealized losses of USD 97 million (CHF 167 million)in the fourth quarter 2001 and USD 13 million (CHF 22 million) in the first quarter 2001. The totalpre-tax gain for the private equity business amounted to USD 4 million (CHF 7 million) in the first quarter versus total pre-tax losses of USD 138 million (CHF 235 million) in the fourth quarter and USD 50 million(CHF 82 million) in the first quarter 2001. The book valueof all private equity investments stood at USD 2.0 billion(CHF 3.4 billion) and fair value at USD 2.2 billion (CHF3.6 billion) as of March 31, 2002.

CSFB Financial ServicesCSFB Financial Services’ first quarter operating incomeof USD 536 million (CHF 901 million) decreased 10%compared with the fourth quarter and were down 19%

Investment Banking income statement in USD m

Fixed IncomeEquityInvestment BankingOther

Operating income


Operating expenses






2001 figures have been restated to reflect the realignment effective as of January 1, 2002. The presentation of segment results differs from the presentation of business unit resultsby excluding acquisition-related costs, exceptional items and minority interests, and reporting these items at business unit level only.1) Excluding tax impact on acquisition-related costs and exceptional items.

4Q2001

85469958918

2,160

901827

1,728

432

131469

(168

0) 85

(83


(28(35(16(69

(29

(31) (10

(26

(38

) (6) 249

(64

–(73

(61

))))

)

))

)

)

)

)

)

)


36221878

27

72(25

25

33

(22(58

–

) –) –

–

1Q2001

1,6051,314

823104

3,846

2,244685

2,929

917

10857

) 752

(1(198

) 553

1Q2002

1,15985569532

2,741

1,550618

2,168

573

102199

272

0(54

218

compared with the first quarter 2001. Operating expenseswere down 23% compared with the first quarter 2001,due to the cost reduction measures implemented as wellas to the sale of CSFBdirect.

Pershing’s revenues decreased versus the sameperiod in the prior year as reduced activity impacted trading and commission revenues; average trades per day declined 20%. Additionally, lower customer balances and the effect of tightened spreads resultingfrom interest rate cuts led to lower interest income;however, revenues have improved in 2002 compared tothe preceding quarter.

Compared with both the first and fourth quarters of 2001,Private Client Services’ revenues were down in the firstquarter 2002, reflecting a difficult equity environment,which contributed to lower relative net new asset growth,and a 7% reduction in its sales force compared with thefourth quarter.

Due to reduced net new business, Credit SuisseAsset Management’s first quarter revenues also declined compared with both the first quarter of 2001 and the unusually strong fourth quarter.



Investment Banking income statement in CHF m

Fixed IncomeEquityInvestment BankingOther

Operating income


Operating expenses






2001 figures have been restated to reflect the realignment effective as of January 1, 2002. The presentation of segment results differs from the presentation of businessunit results by excluding acquisition-related costs, exceptional items and minority interests, and reporting these items at business unit level only.1) Excluding tax impact on acquisition-related costs and exceptional items.

4Q2001

1,4911,2131,017

32

3,753

1,5831,421

3,004

749

224797

(272

0) 142

(130


(26(33(14(69

(27

(29) (8

(24

(36

) (4) 254

(63

–(72

(59

))))

)

))

)

)

)

)

)

)


31181566

23

64(27

21

28

(24(58

–

) –) –

–

1Q2001

2,6332,1551,350

170

6,308

3,6801,124

4,804

1,504

17894

) 1,232

(1(325

) 906

1Q2002

1,9471,4371,167

53

4,604

2,6031,039

3,642

962

171333

458

0(91

367

20

–

5034

46

24

74(32

33

29

34

285

25

200

25

34 58

Investment Banking key information Based on CHF amounts





Number of employees

1) Excluding acquisition interest. / 2) Excluding amortization of retention payments. / 3) Excluding exceptional items. / 4) Excluding amortization of acquired intangible assetsand goodwill. / 5) New definition based on revised capital allocation methodology, as described on page 6.

Investment Banking balance sheet information in CHF m

Total assets

Total assets in USD m

Due from banksof which securities lending and reverse repurchase agreements

Due from customersof which securities lending and reverse repurchase agreements

MortgagesSecurities and precious metals trading portfolios

Due to banksof which securities borrowing and repurchase agreements

Due to customers, otherof which securities borrowing and repurchase agreements

1Q2001

79.0%

14,834

) 19.5%

58.3%

31.12.01

19,094

) 7531.12.01

648,455

387,045

198,806159,784118,00759,80616,348

204,907

344,091137,731108,47062,136

))

)

)

4Q2001

86.0%

13,936

(7.2%

42.2%

31.03.02

18,574

31.03.02

694,172

413,714

232,567185,813128,75047,73515,798

226,422

373,800136,794120,11468,498

1Q2002

82.8%

14,188

9.9%

56.5%

CSFB Financial Services income statement in USD m


Operating income


Operating expenses





Net operating profit before acquisition-related costs and minority interests


4Q2001

614763525

597

223189

412

185

268

151

0) (30

121


) (51) (15) (37) –

) (19

(24) (22

(23

) 1

) (16) –

) 1

–) 69

) (11

)))

)

))

)

)

)


(20(8

(11) (28

(10

16(17

1

(35

(19) (63

(36

) –) (10

(42

1Q2001

10051349(3

659

339200

539

120

25(1

96

(1) (16

79

1Q2002

494383118

536

258157

415

121

213

97

0(27

70



CSFB Financial Services income statement in CHF m


Operating income


Operating expenses







CSFB Financial Services key information Based on CHF amounts





Net new assets institutional asset management in CHF bnNet new assets Private Client Services in CHF bn

Growth in assets under management

Growth in discretionary institutional assets under managementof which net new assetsof which market movement and structural effectsof which acquisitions

Growth in net new assets Private Client Services

Assets under management in CHF bnof which institutional asset managementof which Private Client Services

Discretionary assets under management in CHF bnof which institutional asset managementof which mutual funds distributedof which Private Client Services

Advisory assets in CHF bn

Number of employees

1) Excluding acquisition interest. / 2) Excluding amortization of retention payments. / 3) Excluding exceptional items. / 4) Excluding amortization of acquired intangible assets and goodwill. / 5) New definition based on revised capital allocation methodology, as described on page 6.

14Q2001

1078186043

1,028

386326

712

316

4613

257

0) (52

205


) (50) (12) (35) –

) (17

(22) (20

) (21

) 3

) (14) –

) 3

–) 64

) (10

1Q2001

85.5%

906

14.6%

51.3%

6.84.9

(1.5%

(1.0%1.9%

(2.9%–

4.6%

31.12.01

640.5508.897.1

393.6364.2132.429.4

246.9

8,208

)))

)

))

)

)

)

)

)

)


(23(10(13

) (30

(12

12(19

(2

(35

(22) (62

(37

) –) (12

(43

4Q2001

73.7%

1,072

25.0%

37.5%

) 1.94.7

) 16.1%

) 14.6%) 0.6%) 5.8%

8.2%

5.3%

31.03.02

606.4507.796.2

388.2359.6133.728.6

218.2

7,396

1Q2001

16584180(5

1,081

555327

882

199

42(2

159

(1) (28

130

1Q2002

81.4%

1,098

18.1%

48.2%

(3.93.1

(5.3%

(1.3%(1.1%(0.2%

–

3.2%

01Q2002

827375230

901

434263

697

204

365

163

0(46

117

22

CONSOLIDATED RESULTS CREDIT SUISSE GROUP

Consolidated income statement in CHF m

Interest and discount incomeInterest and dividend income from trading portfoliosInterest and dividend income from financial investmentsInterest expenses

Net interest income

Commission income from lending activitiesCommission income from securities and investment transactionsCommission income from other servicesCommission expenses

Net commission and service fee income

Net trading income

Premiums earned, netClaims incurred and actuarial provisionsCommission expenses, netInvestment income from the insurance business

Net income from the insurance business

Income from the sale of financial investmentsIncome from investments in associatesIncome from other non-consolidated participationsReal estate incomeSundry ordinary incomeSundry ordinary expenses

Other ordinary income/(expenses), net

Operating income


Operating expenses


Depreciation of non-current assets 1)

Amortization of acquired intangible assetsAmortization of goodwillValuation adjustments, provisions and losses from the banking business

Depreciation, valuation adjustments and losses

Profit before extraordinary items, taxes and minority interests

Extraordinary incomeExtraordinary expensesTaxes


Minority interests

Net profit

1) Includes amortization of Present Value of Future Profits (PVFP) from the insurance businesses.


) (47) (1) (1) (44

20

(10) (16

28) 2

) (13

(56

711

) 0) (17

) (36

13(20

–) (35) (21) 20

) –

(25

(20) (15

) (19

(41

) 0) 1) 13) 98

) 24

(76

(91) (64

(85

(73

(26

(74

))))

))

)

)

)

)

)

))

)

))

)

)

)

)))

)

)

)


(9(13(20

) (17

15

27(630

) (14

(1

45

21) 21) (3

(39

(38

3452–

(37(43

) (21

(67

2

5(27

(6

45

(31(5

(14(63

(45

–

–) (96) –

–

) –

–

1Q2001

8,7402,673

108) (9,978

1,543

2214,505

380) (220

4,886

3,049

9,741) (9,093) (442

1,310

1,516

220751

48330

) (577

) 97

11,091

6,0301,954

7,984

3,107

483191170238

1,082

) 2,025

) 47) (25

(572

) 1,475

(47

) 1,428

4Q2001

5,1273,050

133) (6,705

1,605

1584,040

374) (261

4,311

920

8,628) (8,375) (459

1,783

1,577

56590

49461

) (877

) (252

8,161

4,6252,272

6,897

1,264

699203224

1,289

2,415

(1,151

(7) (250) 538

(870

) 40

(830

1Q2002

4,6522,648

107(5,554

1,853

2003,794

485(225

4,254

1,335

10,463(10,131

(4441,082

970

249607

31262

(691

(82

8,330

4,8371,661

6,498

1,832

481193192471

1,337

495

4(9

(87

403

(35

368



Consolidated balance sheet in CHF m

AssetsCash and other liquid assetsMoney market papersDue from banksReceivables from the insurance businessDue from customersMortgagesSecurities and precious metals trading portfoliosFinancial investments from the banking businessInvestments from the insurance businessNon-consolidated participationsTangible fixed assetsIntangible assetsAccrued income and prepaid expensesOther assets

Total assets

Subordinated assetsReceivables due from non-consolidated participations

Liabilities and shareholders’ equityMoney market papers issuedDue to banksPayables from the insurance businessDue to customers in savings and investment depositsDue to customers, otherMedium-term notes (cash bonds)Bonds and mortgage-backed bondsAccrued expenses and deferred incomeOther liabilitiesValuation adjustments and provisionsTechnical provisions for the insurance business

Total liabilities

Reserve for general banking risksShare capitalCapital reserveRevaluation reserves for the insurance businessReserve for own sharesRetained earningsMinority interestsNet profit

Total shareholders’ equity

Total liabilities and shareholders’ equity

Subordinated liabilitiesLiabilites due to non-consolidated participations


(26(18142050

1140

(1(2(2(6

(11

5

137(68

298

17061

10(29(12(33

5

000

(330

28(1

(77

0

5

(1(36

))

)))))

)

)))

)

))

))

31.12.01

3,09232,027

203,78511,823

186,15192,655

208,37437,306

131,2911,8469,422

22,85018,09563,796

1,022,513

1,578276

19,252335,93211,86438,547

261,7523,019

81,50525,51256,49311,362

138,354

983,592

2,3193,590

19,446749

2,4695,6403,1211,587

38,921

1,022,513

20,8921,098

31.03.02

2,29326,116

231,99714,227

194,82893,037

230,40838,973

131,1431,8339,248

22,48517,08856,604

1,070,280

3,74289

24,890361,37913,88738,734

278,5433,045

89,37018,14049,67111,026

142,620

1,031,305

2,3193,591

19,454500

2,4697,1973,077

368

38,975

1,070,280

20,626702

24

Off-balance sheet and fiduciary business in CHF m

Credit guarantees in form of bills of exchange and other guarantees 1)

Bid bonds, delivery and performance bonds, letters of indemnity, other performance-related guarantees Irrevocable commitments in respect of documentary creditsOther contingent liabilities

Contingent liabilities

Irrevocable commitmentsLiabilities for calls on shares and other equity instrumentsConfirmed credits

Total off-balance sheet

Fiduciary transactions

1) Including credit guarantees of securities lent as arranger: 31.03.02: CHF 22,251 m; 31.12.01: CHF 21,148 m.

Derivative instruments in CHF bn

Interest rate productsForeign exchange productsPrecious metals productsEquity/index-related productsOther products

Total derivative instruments

1) Including replacement values for traded derivatives (futures and traded options) subject to daily margining requirements. Total positive and negative replacement values oftraded derivatives amount to CHF 2.4 bn (December 31, 2001: CHF 1.8 bn) and CHF 1.0 bn (December 31, 2001: CHF 0.6 bn).

1)

Currency translation rates in CHF

1 USD1 EUR1 GBP100 JPY

31.12.01

29,7895,0563,2575,484

43,586

129,86479476

174,320

41,448

Negative gross

replacement1) value

31.12.01

98.740.21.8

13.63.5

157.8

31.12.01

1.67541.48242.42821.2759

31.03.02

32,3955,0734,6484,778

46,894

119,11168319

166,707

39,493

Positive gross

replacementvalue

31.12.01

97.039.61.3

14.13.5

155.5

31.03.02

1.67791.46612.39231.2657

Nominal1) value

31.12.01

9,120.81,936.3

29.5393.9120.7

11,601.2

1Q2001

1.641.522.391.39

Negativegross

replacement1) value

31.03.02

88.635.61.6

14.83.9

144.5

4Q2001

1.691.512.431.39

Positive gross

replacement value

31.03.02

87.335.90.9

14.03.0

141.1

1Q2002

1.681.472.401.27

Nominal

value31.03.02

9,039.82,366.5

25.6380.2140.7

11,952.8

Average rate year-to-date used in the income statement

Closing rate used in the balance sheet

Calculation of earnings per share (EPS)

Net profit in CHF mNet operating profit in CHF m 1)

Diluted net profit in CHF mDiluted net operating profit in CHF m 1)

Weighted average shares outstanding 2)

Dilutive impact 3)

Weighted average shares, diluted

Basic earnings per share in CHFBasic earnings per share – operating, in CHF 1)

Diluted earnings per share in CHFDiluted earnings per share – operating, in CHF 1)

All share-related data have been adjusted for the 4-for-1 share split effective as of August 15, 2001. 1) Excluding amortization of acquired intangible assets and goodwill as well as exceptional items of CHF 1,092 m in 4Q2001, all net of tax. / 2) Adjusted for weightedaverage shares repurchased / 3) From convertible bonds and outstanding options.


(74(60(74(60

(1(36(1

(74(60(74(60

))))

)))

))))


–11

–11

040

–12

–10

1Q2001

) 1,4281,726

) 1,4281,726

1,201,898,37211,743,235

1,213,641,607

) 1.191.44

) 1.181.42

4Q2001

(830616

(830616

1,188,677,4457,213,154

1,195,890,599

(0.700.52

(0.690.52

1Q2002

368686368686

1,189,051,0807,477,415

1,196,528,495

0.310.580.310.57



Income statement of the banking and insurance business 3 months, in CHF m

Net interest incomeNet commission and service fee incomeNet trading incomeNet income from the insurance business 1)

Other ordinary income/(expenses), net

Operating income


Operating expenses


Depreciation of non-current assetsAmortization of acquired intangible assetsAmortization of goodwillValuation adjustments, provisions and losses from the banking business

Depreciation, valuation adjustments and losses

Profit before extraordinary items, taxes and minority interests

Extraordinary incomeExtraordinary expensesTaxes


Minority interests

Net profit

Income statements for the banking and insurance business are presented on a stand-alone basis. 1) Insurance business: expenses due to the handling of both claims and investments are allocated to the income from the insurance business, of which: CHF 168 m (3 months 2001: CHF 131 m) are related to personnel expenses and CHF 83 m (3 months 2001: CHF 80 m) to other operating expenses.

))

)

2002

1,8354,2631,335

–46

7,479

4,2411,323

5,564

1,915

347193174471

1,185

730

4(9

(166

559

(38

521

2001

1,5144,8903,049

–217

9,670

5,4891,599

7,088

2,582

391191160237

979

1,603

4) (25) (449

1,133

) (24

1,109

2002

–––

976(122

854

596338

934

(80

1340

180

152

(232

0) 0) 79

(153

) 3

(150

2001

–––

1,540) (121

1,419

541354

895

) 524

930

100

103

) 421

430

(123

) 341

(22

) 319

2002

1,8534,2541,335

970) (82

8,330

4,8371,661

6,498

1,832

481193192471

1,337

495

4(9

) (87

403

) (35

368

2001

1,5434,8863,0491,516

) 97

11,091

6,0301,954

7,984

3,107

483191170238

1,082

2,025

47) (25) (572

1,475

) (47

1,428

Banking business Insurance business Credit Suisse Group

Statement of shareholders’ equity in CHF m

At beginning of financial yearDividends paidDividends paid to minority interestsCapital increases, par value and capital surplusChanges in scope of consolidation affecting minority interestsForeign exchange impactChange in revaluation reserves from the insurance business, netMinority interests in net profitNet profit

At end of period

3 months2001

43,522(14

) (2048

) 1) 928) (1,841

0471,428

44,099

))

)

3 months2002

38,9210

(1610

(27(42

(27435

368

38,975

26

Loan valuation allowance in CHF m

Due from banksDue from customersMortgages

Total loans valuation allowance

of which on principalof which on interest

31.12.01

366,1983,030

9,264

7,5531,711

31.03.02

1055,8122,840

8,757

7,1951,562

Roll forward of loan valuation allowance in CHF m

At beginning of financial yearNet additions charged to income statementNet write-offsBalances acquired/(sold)Provisions for interestForeign currency translation impact and other

At end of period

31.12.01

10,7861,613

) (3,805(3

400273

9,264

))

31.03.02

9,264242

(9470

73125

8,757

Impaired loans in CHF m

With a specific allowanceWithout a specific allowance

Total impaired loans, gross

Non-performing loansNon-interest earning loansRestructured loansPotential problem loans 1)

Total impaired loans, gross

1) Potential problem loans consist of loans where interest payments are being made. However, there exists some doubt in the credit officer's assessment as to the timingand/or certainty of the repayment of contractual principal.

31.12.01

12,957912

13,869

7,9922,808

1142,955

13,869

31.03.02

12,373769

13,142

6,6422,576

773,847

13,142

Securities and precious metals trading portfolios in CHF m

Listed on stock exchangeUnlisted

Debt instruments

of which own bonds and medium-term notesListed on stock exchangeUnlisted

Equity instruments

of which own sharesPrecious metals

Total securities and precious metals trading portfolios

of which securities rediscountable or pledgeable with central banks

31.12.01

66,30891,434

157,742

1,03744,2025,123

49,325

4,4101,307

208,374

77,306

31.03.02

88,33388,904

177,237

1,11942,4768,859

51,335

4,2381,836

230,408

89,962



Investments from the insurance business in CHF m

As of March 31, 2002

Debt securities issued by Swiss Federal Government, cantonal or local governmental entities

Debt securities issued by foreign governmentsCorporate debt securitiesOther

Debt securities

Equity securities

Total securities – available-for-sale

Debt securitiesEquity securities

Total securities – trading

Own sharesMortgage loansOther loansReal estateShort-term investments and other

Investments from the insurance business

Equity securitiesDebt securitiesShort-term investmentsReal estate

Investments where the investment risk is borne by the policyholder

Total investments from the insurance business

Fair value

9,78918,61521,64615,835

65,885

23,657

89,542

–––

10,067–

–

––––

–

–

Grossunrealized

losses

120397339178

1,034

1,183

2,217

–––––

–

––––

–

–

Grossunrealized

gains

139231467465

1,302

1,722

3,024

–––––

–

––––

–

–

Amortized cost

9,77018,78121,51815,548

65,617

23,118

88,735

–––––

–

––––

–

–

Book value

9,78918,61521,64615,835

65,885

23,657

89,542

95745

1,002

1669,8944,5427,3684,120

116,634

10,7712,638

784316

14,509

131,143

Investments from the insurance business in CHF m

As of December 31, 2001

Debt securities issued by Swiss Federal Government, cantonal or local governmental entities

Debt securities issued by foreign governmentsCorporate debt securitiesOther

Debt securities

Equity securities

Total securities – available-for-sale

Debt securities

Equity securities

Total securities - trading

Own sharesMortgage loansOther loansReal estateShort-term investments and other

Investments from the insurance business

Equity securitiesDebt securitiesShort-term investmentsReal estate

Investments where the investment risk is borne by the policyholder

Total investments from the insurance business

Fair value

8,28719,50322,94715,823

66,560

22,332

88,892

–––

10,376–

–

––––

–

–

Grossunrealized

losses

70223267129

689

2,219

2,908

–––––

–

––––

–

–

Grossunrealized

gains

152474672543

1,841

2,406

4,247

–––––

–

––––

–

–

Amortized cost

8,20519,25222,54215,409

65,408

22,145

87,553

–––––

–

––––

–

–

Book value

8,28719,50322,94715,823

66,560

22,332

88,892

1,858

37

1,895

1849,8114,6487,5493,793

116,772

10,9342,495

794296

14,519

131,291

28

RISK MANAGEMENT

Trading exposures The VaR at Credit Suisse First Boston at the end of thefirst quarter of 2002 was USD 52.5 million comparedwith USD 42.7 million at the end of the previous quarter.The increase was due to an increase in interest ratevolatility combined with a reduction in overall portfoliobenefit across risk categories. As illustrated in the back-testing chart, Credit Suisse First Boston had no regula-tory backtesting exceptions in the first quarter of 2002.The backtesting chart shows the component of tradingrevenue due purely to overnight price movements andexcluding fee and commission income. This calculation isbetter suited for the evaluation of a VaR model.

Asset qualityDespite continuing economic weakness in selected mar-kets and sectors, overall impaired assets have declinedas older positions are resolved. Non-performing assetsat Credit Suisse First Boston declined in the first quarter2002 as a result of fewer new problem situations andsales of problem loans. The Group’s provision coverageof problem loans continued to strengthen. While invest-ment grade exposure continues to make up over 80% ofcounterparty exposure, non investment grade exposureshave deteriorated more quickly than in past years. Thisdevelopment has led to increased monitoring and moreactive credit hedging activities, particularly of exposuresin vulnerable areas.

2Q2001 3Q2001 4Q2001 1Q2002

Daily adjusted trading revenue One-day VaR (99%)

in USDm

100

50

0

–50

–100

–150

Adjusted trading revenue and VaR estimate for Credit Suisse First Boston.

CSFB trading exposures (99% one-day VaR)in USD m

Total VaRPeriod endAverageMaximumMinimum

in USD m

VaR by risk typeInterest rateForeign exchangeEquityCommodity

Subtotal

Diversification benefit

Total

Credit Suisse First Boston computes these VaR estimates separately for each risktype and for the whole portfolio using 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.

2Q2001

72.373.085.366.6

30.06.01

79.817.121.21.1

119.2

) (46.9

72.3

)

3Q2001

85.078.095.263.1

30.09.01

107.215.223.32.5

148.2

) (63.2

85.0

4Q2001

42.749.055.542.7

31.12.01

56.711.121.72.4

92.0

) (49.3

42.7

1Q2002

52.549.261.240.2

31.03.02

59.77.5

17.20.6

85.0

(32.5

52.5

Asset quality & provisions in CHF m

As of March 31, 2002

Non-performing counterparty exposure (NPCE) 1)

Capital provisions against NPCE 2)

Total counterparty exposure 1)

of which lendingof which committed, but unusedof which contingent exposureof which counterparty trading

Coverage ratio of NPCE31.03.0231.12.0131.03.01NPCE as percentage of counterparty exposure31.03.0231.12.0131.03.01

1) Includes loans and loan equivalents. / 2) Excludes total interest of CHF 1,275 m (fully provided).

Credit SuisseGroup

8,7585,261

380,342182,591105,20025,74266,809

60%59%62%

2.3%2.4%2.3%


3,4512,040

219,87938,847

103,93011,38365,719

59%59%60%

1.6%1.6%0.7%

Credit SuisseFinancial Services

5,3073,221

160,463143,744

1,27014,3591,090

61%60%62%

3.3%3.5%4.6%



INFORMATION FOR INVESTORS

Credit Suisse Group shares Ticker symbolsStock exchange listings Bloomberg Reuters Telekurs

SWX Swiss Exchange/virt-x CSGN VX CSGZn.VX CSGN,380Frankfurt CSX GR CSGZn.DE CSX,013New York (ADS) 1) CSR US CSR.N CSR,065Tokyo 8653 JP CSGZ.T N1492,106

1) 1 ADS represents 1 registered share.

Swiss security number 1213853 ISIN number CH0012138530 German security number DE 876 800CUSIP number 225 401 108

RatingsAgencies Credit Suisse Group Credit Suisse Credi Credit Suisse First Boston Winterthur

Long term Short term Long term Short term Long term Short term

Moody’s, New York Aa3 - Aa3 P1 Aa3 P1 Aa3Standard & Poor’s, New York A+ A1 AA- A1+ AA- A1+ AA-Fitch IBCA, New York AA- F1+ AA- F1+ AA F1+ AA-

5520124English

Enquiries

CREDIT SUISSE GROUPInvestor Relations Gerhard Beindorff, Andreas PeterlikTel. +41 1 333 4570 / +41 1 333 3169Fax +41 1 333 2587

CREDIT SUISSE GROUPMedia Relations Karin Rhomberg Hug, Claudia KraazTel. +41 1 333 8844 Fax +41 1 333 8877

Copies of all Credit Suisse Group

financial publications may be ordered from:

CREDIT SUISSEKIDM 23Uetlibergstrasse 2318070 ZurichSwitzerlandFax +41 1 332 7294www.credit-suisse.com/q1results2002/order.html

Credit Suisse GroupParadeplatz 8 P.O. Box 1 8070 Zurich Switzerland

Tel. +41 1 212 1616 Fax +41 1 333 2587

www.credit-suisse.com





credit-suisse Quarterly Report Q1/2002

Economy & Finance

Transcript of credit-suisse Quarterly Report Q1/2002