Your SlideShare is downloading. ×
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

.credit-suisse Annual Review Part 2 An overview of Credit Suisse Group Organisation Financial review Strategic review

363

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
363
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ANNUAL REVIEW 2000 PART II AN OVERVIEW OF CREDIT SUISSE GROUP 6
  • 2. PART I 2 Financial highlights 2000 4 Editorial PART II 6 An overview of Credit Suisse Group 8 Strategic review 12 Organisation 14 Financial review PART III 18 Review of business units 20 Credit Suisse Financial Services 26 Credit Suisse Private Banking 29 Credit Suisse Asset Management 32 Credit Suisse First Boston 36 Risk management PART IV 38 Our broader responsibilities PART V 44 Consolidated results 46 Income statement 47 Balance sheet 48 Off-balance sheet business 48 Selected notes to the consolidated financial statements 52 Management 57 Main offices 58 Information for investors www.credit-suisse.com 7
  • 3. AN OVERVIEW OF CREDIT SUISSE GROUP With its innovative ideas and highly professional approach, Credit Suisse Group enables its clients – companies, institutions and private individuals – to turn their visions into reality. Strategic review The market environment for financial services companies investment banking and in financial intermediation in gener- such as Credit Suisse Group holds a great deal of promise al, the number of institutions that can keep pace with deve- over the coming years. On the one hand, an unprecedented lopments in today’s highly competitive global marketplace is volume of wealth will be accumulated in the form of private constantly declining. Credit Suisse First Boston is one of the and collective savings, primarily directed at providing retire- world’s leaders in this sector. Over the longer term, asset ment benefits and bringing with it a rising demand for suit- management should contribute two-thirds of the Group’s able investment opportunities. This individual wealth will in- net profit, with the remaining third being derived from invest- creasingly require the high levels of service, performance ment banking. and multi-channel access that large global financial institu- tions can provide. At the same time, companies and institu- tions worldwide will be using more and more of the products and services provided by professional, globally-active finan- cial services groups to help finance their operations and make more efficient use of their financial resources. Further consolidation is expected in the global financial services sector, leaving the market to be contested by fewer, but Net profit contribution before corporate center costs stronger, competitors. Financial intermediation The two core businesses: asset management and (Credit Suisse First Boston) investment banking 35% 34% Against this background, Credit Suisse Group focuses its Asset gathering/asset activities on two key disciplines. One is asset management/ management and supporting businesses asset gathering, offering customers the best service, quality 34% and performance in savings, life insurance, pension and in- 65% 35% 66% vestment products, as well as in other banking and insur- 45% ance services. The other is investment banking, where the 66% Group acts as a financial market intermediary, servicing 55% 65% companies, countries and major institutions. In both areas, 55% double-digit growth rates are expected in the coming years. In asset management, the Group enjoys an excellent 45% position in the savings, investment, insurance and pension markets with Credit Suisse Financial Services, Credit Suisse Target mixx 1996 1997 1998 1999 2000 Private Banking and Credit Suisse Asset Management. In 8
  • 4. Answers to frequently asked questions Our main priorities for the next few years Many banks target the rapidly growing market of affluent private clients, a segment in which there is fierce compe- • Continue to focus on growth in asset gathering tition. How does Credit Suisse Group intend to set itself and management, both organically and through apart from its peers? targeted acquisitions. Credit Suisse Group is one of the world’s leading financial services companies, offering the full range of banking and • Realise the full benefits of the merger with insurance services. Thanks to our strong brand, innovative Donaldson, Lufkin & Jenrette (DLJ), thus im- service palette and know-how, we enjoy an excellent reputa- proving Credit Suisse First Boston’s position tion. What’s more, with over 15 million clients in Europe, we among the leading global investment banks have the ideal prerequisites for bringing our services to new and growing the asset gathering business with markets. high-net-worth individuals in the US. Our new business model for affluent clients in Europe, developed in 1999, has already been successfully imple- • Strengthen earnings power by increasing pro- mented in Italy. This business model is a multi-channel stra- ductivity in both core areas of business, and tegy that allows clients to reach us through personal financial minimise earnings volatility through strict risk advisors, at Financial Centers, or via the Internet and call management and by optimising the business centres at any time. Moreover, we include financial products mix. from all major third-party providers alongside our proprietary products, so that clients may choose the best possible • Further develop the potential within the Group by solutions to their needs. strengthening the Credit Suisse brand, and increase leverage across the Group in distribu- Why, with the acquisition of Donaldson, Lufkin & Jenrette tion, products, expertise and technology. (DLJ), has Credit Suisse Group invested so heavily in investment banking? • Further focus on performance measurement, The acquisition of DLJ has enabled us to considerably using Value Based Analysis (VBA), and on strengthen Credit Suisse First Boston’s position as a leader capital allocation, introducing Economic Risk in investment banking. In terms of market position, global Capital (ERC). presence and expertise, we are now very well placed in comparison to our competitors. We have also enhanced our status in the US asset management market. We currently manage about USD 65 billion in private client assets in the US, while the institutional assets managed by Credit Suisse Asset Management amount to USD 94 billion. Moreover, we www.credit-suisse.com 9
  • 5. AN OVERVIEW OF CREDIT SUISSE GROUP “Investment banking should contribute one-third of the Group’s profit, with the remainder coming from our other businesses – primarily asset gathering and asset management.” now have a strong position in the field of securities process- includes youtrade, yourhome and Fund Lab, as well as a ing (Pershing) and electronic brokerage (CSFBdirect) thanks large number of other services that are constantly being to new capabilities acquired with DLJ. enhanced. With the acquisition of DLJdirect, renamed CSFBdirect, the Group has gained a leading online broker Does the acquisition of DLJ increase volatility of earnings? that will add a new distribution channel in the US and en- By combining the operations of Credit Suisse First Boston hance Credit Suisse’s online services in Europe. In 2000, and DLJ, we have substantially diversified our position in Credit Suisse Group invested a total of CHF 987 million in terms of both geography and products. Synergies from the new IT projects, of which one-third was channelled into merger have also led to considerable cost savings. Finally, a e-business projects. strict risk management policy figured high on the agenda, thus ruling out large concentrations of risk. What are Credit Suisse Group’s views on developments regarding Swiss banking confidentiality? How well suited is the non-life business of Winterthur to Banking confidentiality exists in various countries, where the two core areas of business of Credit Suisse Group? citizens value the protection of privacy regarding their finan- Non-life business is not, on its own, a strategic area for cial affairs. Law-abiding clients benefit from this type of Credit Suisse Group. However, as a leading provider of one- regulation, confident that their private sphere remains pro- stop financial services, the non-life business is an important tected. Banking confidentiality is not, of course, absolute. In element within our client offerings. Winterthur Insurance is cases where money laundering, tax fraud or any other crime the market leader in non-life insurance in Switzerland and is suspected, financial institutions may be required to freeze has an almost 15 million-strong client base in Europe. We the funds concerned and to disclose information within the want to use this base more effectively: if we rank as one of framework of legal proceedings. The problem of tax evasion the best in the non-life business, there is a very good is effectively countered in Switzerland through a withholding chance that those customers will also turn to us when it tax on domestic securities, levied at the source. Credit comes to their investment needs. Suisse Group supports legislative efforts to introduce a similar tax on foreign securities. What are Credit Suisse Group’s main e-business initiatives? What is Credit Suisse Group’s current position The implementation of the very latest technology has long in Japan? been a priority of Credit Suisse Group. We offer online ser- All of the sanctions imposed in 1999 against Group entities vices such as Credit Suisse’s Direct Net, Webinsurance operating in Japan have now been lifted. The Japanese from Winterthur and PrimeTrade from Credit Suisse First market is still of high priority to Credit Suisse Group in terms Boston as alternatives to existing channels. At the same time, of both asset gathering and asset management, as well as we use innovative e-business applications to offer existing investment banking. customers new products and to attract new client groups. Our current range of business-to-consumer applications 10
  • 6. “The success of a company depends on its staff.” In its report published in September 2000, the Swiss tives and other conditions. Employees own approximately Federal Banking Commission (SFBC) criticised a num- 8% of Group shares, thus aligning employee and share- ber of banks, including Credit Suisse Group, for con- holder interests. ducting business with the entourage of the former Nigerian dictator, Sani Abacha. What is Credit Suisse Does Credit Suisse Group have any plans to launch a Group’s stance? share repurchase programme? In this case, we were deceived by a long-standing client who Within the framework of the DLJ acquisition and our shift to arranged the business relationship in 1995. To prevent such a greater use of share options in employee compensation, a situation from recurring, we implemented comprehensive we have communicated that we will propose the confirma- measures several years ago. Moreover, we undertake com- tion of a share repurchase programme at our Annual prehensive efforts to avoid dealings with undesirable clients General Meeting on 1 June 2001. The amount to be repur- and have a restrictive business policy vis-à-vis politically-ex- chased will depend on earnings strength, and on the size posed clients. and timing of acquisition opportunities. What is Credit Suisse Group’s compensation policy? Are there plans to obtain a stock market listing for Credit The success of a company depends on its staff. Credit Suisse Group stock in the US? Suisse Group wants to be an employer of choice, and this Yes, Credit Suisse Group intends to pursue a listing of its means paying our staff performance-related compensation shares in New York. The listing and registration with the US that is in line with market practices. Compensation is deter- Securities and Exchange Commission will necessitate sup- mined according to competitive conditions, the situation in plemental disclosures, including a reconciliation of net profit the corresponding labour markets, Group and business unit and shareholders’ equity to US GAAP. results and individual performance. Since compensation makes up more than 70% of our total costs, the effective management of personnel expenses is imperative. Paying less than the market rate will inevitably increase costs as a result of greater staff turnover, not to mention problems related to a lack of continuity and quality in client service. Certain forms of compensation enable employee and shareholder interests to be harmonised. At Credit Suisse Group, for example, a large component of employee com- pensation is paid in the form of Credit Suisse Group shares that must be held for a certain period. In addition, we are issuing management options on Credit Suisse Group shares which must be held for several years, the exercising of which is largely dependent on the fulfilment of performance objec- www.credit-suisse.com 11
  • 7. AN OVERVIEW OF CREDIT SUISSE GROUP Credit Suisse Group is one of the world’s leading global financial services companies. In the area of asset management and asset gathering, specialised business units offer their clients – comprising private individuals, companies and institutions – investment products, financial advisory services, life insurance, pension solutions and the full range of other bank services, as well as non-life insurance from Winterthur. In the area of investment banking, Credit Suisse First Boston is one of the global leaders, playing a major role in many significant transactions. Credit Suisse Group is headquartered in Zurich and dates back to 1856. Its registered shares (CSGN) are listed on the SWX Swiss Exchange, in Frankfurt and Tokyo. They are also traded in New York as an American Depository Receipt (ADR), in London and Paris. The Group employs around 80,000 staff worldwide. Financial Services Private Banking Credit Suisse Financial Services is one of the leading Credit Suisse Private Banking is one of the providers of comprehensive financial services in Europe world’s leading private banks. It has a strong and other selected markets. It is a market leader in deve- market presence both within and outside loping innovative solutions for customers’ financial require- Switzerland and specialises in providing ments in banking and insurance, through its e-business personal investment counselling and profes- applications and integrated distribution and service sional asset management for high-net-worth channels. individuals. Winterthur Insurance Credit Suisse Banking Winterthur Life & Pensions Credit Suisse Personal Finance Credit Suisse e-Business Winterthur legal entity Credit Suisse legal entity 12
  • 8. Asset Management Investment Banking Credit Suisse Asset Management is a leading Credit Suisse First Boston is a leading global global asset manager focusing on institutional, investment banking firm serving institutional, mutual fund and private client investors, provid- corporate, government and individual clients. Its ing investment products and portfolio manage- businesses include securities underwriting, sales ment advice in five core markets around the and trading, investment and merchant banking, world. financial advisory services, investment research, venture capital, brokerage services for financial institutions and online brokerage services. Credit Suisse First Boston legal entity Number of employees by business unit 28,122 40,577 2,350 8,665 CSFS CSPB CSAM CSFB www.credit-suisse.com 13
  • 9. AN OVERVIEW OF CREDIT SUISSE GROUP Credit Suisse Group continued to perform well in 2000. It increased its net operating profit by 35% to CHF 7.2 billion and recorded a 19.3% growth in assets under management to CHF 1,417.0 billion. Earnings per share on an operating basis rose by 32% to CHF 25.98. Overview of business unit results Credit Credit Credit Credit Adjustments Suisse Suisse Suisse Suisse including Credit 2000 Financial Private Asset First Corporate Suisse in CHF m Services Banking Management Boston Center Group Operating income 9,520 6,251 1,562 20,363 (465) 37,231 Operating expenses 6,135 2,617 1,137 15,645 (386) 25,148 Gross operating profit 3,385 3,634 425 4,718 (79) 12,083 Depreciation and write-offs on non-current assets 1) 356 41 29 644 283 1,353 Valuation adjustments, provisions and losses 2) 563 160 0 537 5 1,265 Profit before extraordinary items, taxes 1) 2,466 3,433 396 3,537 (367) 9,465 Extraordinary expenses/(income), net 3) (20) (1) 1 0 212 192 Taxes 3) 547 766 57 925 (477) 1,818 Net operating profit before minority interests 1) 3) 1,939 2,668 338 2,612 (102) 7,455 Amortisation of acquired intangible assets, net of tax, and goodwill 48 7 52 254 (2) 359 Restructuring provision, net of tax 1,074 1,074 Net profit before minority interests 1,891 2,661 286 2,358 (1,174) 6,022 Minority interests (147) (29) 0 (3) (58) (237) Net profit 1,744 2,632 286 2,355 (1,232) 5,785 Net operating profit 1) 3) 1,792 2,639 338 2,609 (160) 7,218 Value added 4) 1,134 2,456 215 1,107 (564) 4,348 10,093 5) Average allocated equity capital 3,117 1,147 11,968 18.7% 5) Return on average equity capital n/a n/a 19.7% Return on average equity capital (operating) 1) 19.2% 5) n/a n/a 21.8% Equity capital allocation as of 1.1.2001 13,873 3,031 1,296 16,346 1) Excl. amortisation of acquired intangible assets and goodwill. (151) (40) 0 6 2) Net of allocation (-)/release (+) of reserves for general banking risks. 3) Excl. restructuring provision. 4) Value added is a measure of value creation in the period under review. It is derived from Credit Suisse Group’s Value Based Analysis (VBA) and complements the per- formance metrics which are currently used, but does not replace them. The measure is aimed at enhancing management’s awareness of value creation. For this pur- pose, accounting figures are adjusted by adding back accounting distortions such as selected non-cash charges (e.g. goodwill), and cost of equity is charged to the business unit as well as to consolidated accounts. 5) For Winterthur Group within Credit Suisse Financial Services, average invested capital is used for calculation of return on invested capital (ROIC). 14
  • 10. Overview of assets under management 1) 31 Dec. 2000 31 Dec. 1999 Change in CHF bn in CHF bn in % 303.0 278.2 8.9 Credit Suisse Financial Services – of which net new assets 2) 3) 8.1 11.1 (27.0) 153.6 136.8 12.3 – of which discretionary 488.2 476.7 2.4 Credit Suisse Private Banking – of which net new assets 3) 21.0 11.6 81.0 101.1 95.2 6.2 – of which discretionary 487.2 424.6 14.7 Credit Suisse Asset Management – of which net new assets 3) 4) 24.4 18.5 31.9 360.1 324.2 11.1 – of which discretionary 142.1 10.6 – Credit Suisse First Boston – of which net new assets 3) 1.6 1.6 0 6.6 1.4 371.4 – of which discretionary 31.5 5.7 452.6 – of which Private Equity 1,417.0 1,188.1 19.3 Credit Suisse Group (consolidated) – of which net new assets 3) 53.3 41.9 27.2 619.6 556.2 11.4 – of which discretionary 1) As of 1.1.2000, assets under management include assets which are held for investment purposes. For the insurance business, assets under management include all investment assets underlying insurance contracts. Not included are corporate liquidity funds, wholesale custody, banking and broking assets, except for assets of corporate clients of Credit Suisse in Switzerland. The previous year’s figures have been adjusted accordingly. 2) 1999 net new asset figure adjusted for short term/extraordinary asset inflows. 3) Net new assets exclude interest and dividends. 4) Net new discretionary assets. Financial review financial institutions which have made CHF 25.98 (+32%) on an operating large purchase acquisitions. After basis, and book value per share rose In the year 2000, all business units deducting amortisation of goodwill and by 14% to CHF 136.30 since the end achieved double-digit growth rates other intangibles of CHF 359 million of 1999. both in revenue and in net profit and and the one-off DLJ restructuring made further progress towards achiev- charge of CHF 1.1 billion, Credit Par value reduction and share split ing their strategic targets. Suisse Group’s reported net profit after Instead of a dividend, the Group’s taxes and minority interests for the full Board of Directors will propose a par year stood at CHF 5.8 billion. value reduction of CHF 8 per share to Further increase in profits and strong Looking at the individual business the Annual General Meeting on 1 June operating results For the first half of 2000, Credit units, Credit Suisse Financial Services 2001. This distribution compares to a Suisse Group recorded a net operating contributed CHF 1.8 billion (+16%) to dividend of CHF 7 per share in 1999 profit of CHF 3.7 billion, excluding the the Group’s net operating profit. (CHF 5 in 1998). At the same time – amortisation of goodwill. Despite diffi- Excluding its Personal Financial subject to the required amendments in cult market conditions and a lower Services initiative in Europe, which is in Swiss corporate law – Credit Suisse level of capital market activity, the investment mode, Credit Suisse Group will split its shares 4 for 1, re- Group nearly equalled this result in the Financial Services posted a net operat- sulting in a new par value of CHF 3 second half, posting a net operating ing profit of CHF 2.0 billion (+30%). per share. If approved by the Annual profit of CHF 3.5 billion, excluding the Credit Suisse Private Banking con- General Meeting, the capital reduction amortisation of goodwill and other in- tributed CHF 2.6 billion (+38%) to of CHF 8 will be paid out on 15 tangibles, and the one-off restructuring the Group’s total net operating profit; August 2001. charge for the integration of Donald- Credit Suisse Asset Management, son, Lufkin & Jenrette (DLJ). For the CHF 338 million (+32%); and Credit Sustained healthy growth of assets year as a whole, Group net operating Suisse First Boston, CHF 2.6 billion under management profit was up 35% to CHF 7.2 billion. (+ 34%). Credit Suisse Group has grown its as- The net operating profit gives a clearer Credit Suisse Group’s return on sets under management by a total of indication of current and future equity stood at 17.7%, or 21.5% on CHF 228.9 billion to CHF 1,417.0 bil- earnings strength, and has become an an operating basis. Earnings per share lion since end-1999. This corresponds accepted measure of earnings for amounted to CHF 20.83 (+8%), or to total growth of 19.3%, of which www.credit-suisse.com 15
  • 11. AN OVERVIEW OF CREDIT SUISSE GROUP 4.5%, or CHF 53.3 billion (1999: CHF 41.9 billion), is attributable to net new Revenue composition assets. The Group’s net new asset growth comprised CHF 8.1 billion from 14% 17% Credit Suisse Financial Services, CHF 21.0 billion from Credit Suisse Private Banking, CHF 24.4 billion from Credit 24% Suisse Asset Management and CHF 1.6 billion from Credit Suisse First 45% Boston’s private equity and private client businesses. Challenging market conditions and the weakening of the Balance sheet business US dollar in the second half allowed Commission and service fees only modest performance. Trading Insurance Strong revenue growth The Group’s operating income rose by 34% to CHF 37.2 billion. Net interest income was up 1% compared to 1999. Commission and service fee in- come increased 53%, and trading in- Revenue contribution by business unit come increased 34%. Income from the insurance business was up 22%. 25% Operating expenses also increased 34%, to CHF 25.1 billion. This was 54% attributable in large part to business expansion, higher performance-related 17% staff incentive payments in line with in- focusing on e-business and e-enabling, 4% dustry pressure on compensation levels as well as a specialised technology and and increased profitability, and to spe- services unit. CSFS cial staff retention programmes con- The new structure is aimed at en- CSPB nected to the DLJ acquisition which hancing the Group’s asset gathering CSAM were announced at the time. Gross strategy through closer integration of CSFB operating profit rose by 32% to CHF banking and insurance, a focusing of 12.1 billion, and valuation adjustments, strengths and expansion of services in provisions and losses were CHF 1.3 e-business, and the exploitation of ad- billion. Extraordinary expenses, entail- ditional business opportunities in target ing the aforementioned one-off re- markets in Europe. The performance of structuring costs of CHF 1.1 billion the new business area in 2000 under- (net of tax) from the integration of DLJ, lines the success of the measures Net operating profit contribution by business unit stood at CHF 1.8 billion. already initiated. 24% Closer collaboration in the areas of Acquisition of DLJ bolsters position 35% The acquisition of the US investment banking, insurance and e-business Credit Suisse Group announced the bank Donaldson, Lufkin & Jenrette creation of Credit Suisse Financial (DLJ), concluded on 3 November Services in the first half of the year. 2000, creates considerable added 5% The private and corporate client busi- value for both of Credit Suisse Group’s 36% ness in Switzerland and the onshore core areas of business. business with affluent clients in Europe In investment banking, the acquisi- CSFS (Personal Financial Services) come un- tion creates a ‘super bulge bracket’ CSPB der the umbrella of the new business global investment bank in Credit Suisse CSAM area, in addition to the activities in non- First Boston. The Group’s market CSFB life insurance, life insurance and pen- position and earnings quality in global sions. Credit Suisse Financial Services investment banking have been sub- also includes a newly-formed unit stantially improved, with Credit Suisse 16
  • 12. Key performance indicators Long-term Key criteria objective 2000 Credit Suisse Group Net new asset growth >6% 4.5% Operating return on equity (ROE) 1) 18–22% 21.5% Credit Suisse Financial Services Net new asset growth 6% 2.9% Operating return on equity (ROE) 1) 2) 20% 19.2% Credit Suisse Banking: operating cost/income 60% 64.6% Winterthur Life & Pensions: net return on technical provisions 60–65 bp 68 bp Winterthur Insurance: combined ratio 103% 106.5% Credit Suisse Private Banking Net new asset growth 5% 4.4% Net operating margin on assets under management 45–50 bp 54 bp Credit Suisse Asset Management Discretionary net new asset growth 10% 7.5% Operating net profit margin on assets under management 8 bp 7.5 bp Credit Suisse First Boston Market share Increase market share Achieved Operating return on equity (ROE) 1) – in a good market environment >20% 21.8% – over market cycles 15–20% 1) Excl. amortisation of acquired intangible assets and goodwill, as well as excl. restructuring provision. 2) For Winterthur Group within Credit Suisse Financial Services, average invested capital is used for calculation of return on invested capital (ROIC). First Boston ending the year ranked Outlook for 2001 among the leading providers in its Credit Suisse Group continues to be- industry. lieve that the underlying favourable The integration of DLJ into Credit macro trends in asset gathering and Suisse First Boston was completed financial intermediation will provide con- rapidly to minimise business disruption. tinued opportunity for growth. It is well Cost savings are on track, with 80% of positioned in these two areas of strate- savings achieved by year-end. To date, gic focus to take advantage of the Credit Suisse First Boston has been attractive opportunities in its key able to achieve its goal of retaining in geographic and global markets. The excess of 90% of identified talent. focus will be on performance, service, In asset management, the Group’s quality and brand to differentiate the activities benefited from DLJ’s financial Group in an increasingly competitive services business, which includes asset environment. management and brokerage for high- 2001 has started off with a less net-worth investors, the online broker robust economic and capital markets DLJdirect (operating under the name environment, particularly in equity CSFBdirect as of 2001) and Pershing, markets, as compared to the first half a leading provider of transaction pro- of 2000. Additionally, the Group con- cessing. tinues to make significant investments DLJ’s institutional asset manage- in its core businesses to be poised for ment business was integrated into growth and to adapt to changing client Credit Suisse Asset Management, needs and opportunities. This year will leading to a significantly stronger posi- likely offer a more challenging environ- tion in the US. ment; however, the Group remains confident it can maintain its strategic momentum and performance. www.credit-suisse.com 17

×