The document provides interim financial results for Credit Suisse Group for the first half of 1999. Key highlights include: - Net profit increased 11% to CHF 2.7 billion compared to the first half of 1998. - All business units performed well, with Credit Suisse First Boston achieving a net profit of CHF 1 billion. - Total assets under management grew 10% to CHF 1.025 trillion due to strong investment performance and net new business. - Earnings per share increased 9% to CHF 9.85 while book value per share rose 8%.

1. LETTER TO SHAREHOLDERS
1999 INTERIM RESULTS

2. Share performance
400
350
300
250
200
150
100
Credit Suisse Group
Swiss Market Index
1996 1997 1998 1999
Change
Share data 30 June 1999 31 Dec. 1998 in %
Number of shares issued 272,101,488 269,086,369 1
Shares ranking for dividend 272,101,488 269,086,369 1
Market capitalisation (CHF m) 73,195 57,854 27
Share price (CHF) (at 3 Sept. 1999: 294) 269 215 25
high January – June 1999 310
low January – June 1999 211.8
Change
1st half 1998
1st half 1999 in %
Earnings per share (CHF) 9.85 9.02 9
Average shares ranking for dividend 270,490,439 266,340,880 2
Financial calendar
Announcement of 1999 results Tuesday, 14 March 2000
2000 Annual General Meeting Friday, 26 May 2000
Contents
Commentary on the consolidated results 4
Consolidated income statement 8
Consolidated balance sheet 9
Consolidated off-balance-sheet business, selected notes to the consolidated financial statements 10
Credit Suisse 12
Credit Suisse Private Banking 14
Credit Suisse First Boston 16
Credit Suisse Asset Management 19
Winterthur 20
Closing 22
3

3. DEAR SHAREHOLDERS
Credit Suisse Group posted a net profit of CHF 2.7 bn after tax and minority
interests in the first half of 1999, an 11% increase over strong results for the
same period last year. All business units performed well. Credit Suisse First
Boston almost matched 1998’s good first-half results, despite a reduction
in risk exposure, recording a net profit of CHF 1.0 bn and a ROE of 21%.
With a net profit of CHF 201 m, Credit Suisse equalled its 1998 full-year
result. The Group’s ROE was 19%. Assets under management were
increased by CHF 127 bn to CHF 1,061 bn. For the full year Credit Suisse
Group expects good results.
All business units performed at or above expectation. The Group’s net operating income
rose to CHF 13.8 bn, an increase of 10% compared with the first half of 1998, with
commission and service fee income rising by 20% to CHF 5.0 bn, and income from
trading increasing by 22% to CHF 3.6 bn. Interest income was practically unchanged
at CHF 2.8 bn (down 1%). Revenue from the insurance business was CHF 2.3 bn.
Operating expenses rose by 12% to
CHF 9.1 bn. Personnel expenses increased
KEY FIGURES
by 12% to CHF 6.7 bn. Other operating
1st half 1999 1st half 1998 Change
expenses rose by 12% to CHF 2.4 bn. The
in CHF m in CHF m in %
rise in expenses reflects acquisitions, efforts
Revenue 13,804 12,578 10
to grow the businesses, the shift to lower risk
Gross operating profit 4,671 4,390 6
but more personnel-intensive businesses
Net profit 2,665 2,401 11
in investment banking, investments in infor-
Cash flow 4,024 3,591 12
mation technology and a more competitive
market for top talent.
ROE
Gross operating profit increased by 6%
– Group 19.4% 18.4%
to CHF 4.7 bn. Valuation adjustments, pro-
– banking 24.2% 23.3%
visions and losses decreased by 4% to CHF
– insurance 10.6% 9.5%
878 m, of which CHF 44 m were covered
through a release of reserves for general
30 June 1999 31 Dec.1998 Change
in CHF m in CHF m in %
banking risks. Extraordinary income de-
Total assets (in CHF m) 698,410 652,437 7
creased by 88% to CHF 63 m, while
Total shareholders’ equity (in CHF m) 30,344 28,162 8
extraordinary expenses fell by 97% to CHF
– of which minority interests (in CHF m) 2,155 2,325 –7 14 m. After deducting tax of CHF 647 m,
Total assets under management (in CHF bn) 1,025 934 10 down 19%, and minority interests of CHF
58 m, down 41%, Credit Suisse Group
Total risk weighted positions (BIS) 223,297 202,078 11
posted a net profit of CHF 2.7 bn, 11%
BIS tier 1 capital 24,478 24,198 1
higher than in the first half of 1998.
– of which noncumulative preferred stock 194 0 –
BIS total capital 35,892 36,000 0
in % in %
BIS tier 1 ratio 11.0 12.0
BIS total capital ratio 16.1 17.8
Change
30 June 1999 31 Dec. 1998 in %
Total staff 63,333 62,296 2
– of which in Switzerland: in banking 21,086 20,795 1
in insurance 6,977 7,146 –2
– of which outside Switzerland: in banking 16,260 15,980 2
in insurance 19,010 18,375 3
4

4. In the first six months of 1999, total assets under management grew by CHF REVENUE COMPOSITION
1st half 1999
91 bn (up 9.7%) to CHF 1,025 bn. Including the acquisition of Warburg Pincus Asset
Management, total assets under management for the Group stood at CHF 1,061 bn.
17%
Earnings per share amounted to CHF 9.85 (up 9%), while book value per share 21%
rose by 8% to CHF 103.6 since the beginning of 1999. As at 30 June 1999, Credit
Suisse Group had 63,333 employees.
26%
Good performances from all business units
36%
Credit Suisse, which is responsible for Swiss corporate and individual customers, con- Balance sheet business
firmed the turnaround it achieved in 1998. With a net profit of CHF 201 m, it exceeded Commission
Trading
1998 first-half results by CHF 150 m. Revenue rose by 8% to CHF 1.7 bn, while Insurance
operating expenses declined by 4% to CHF 1.1 bn. The cost-income ratio improved
further to 66.8%, a fall of 7.7 percentage points. The risk profile of the loan book
again developed favourably.
Credit Suisse Private Banking continued to build on 1998’s good results,
posting a net profit of CHF 859 m, an increase of 4% on the same period last year.
Revenue rose by 5% to CHF 2.3 bn, while operating expenses rose by 8% to CHF
1.1 bn owing mainly to investment in human resources and information technology. In
the first half of the year, assets under management grew by 9.2% to CHF 440 bn, of
which CHF 12.6 bn or 3.1% was the result of a net inflow of new business and 6.1%
due to market performance.
Credit Suisse First Boston continued its momentum despite the market
turbulence in the third quarter of 1998, with a good performance in the first six months
of 1999. Through organic growth and the swift integration of last year’s acquisitions,
the firm gained considerable market share. Credit Suisse First Boston posted a net
profit of CHF 1.0 bn (down 4%), or USD 700 m (down 2%), in line with the good
results for the first half of 1998. Revenue rose by 14% to CHF 7.4 bn, (or by 16% to
USD 5.1 bn). Operating expenses increased by 16% to CHF 5.2 bn (or by 18% to
USD 3.6 bn), reflecting efforts to build the business, higher bonus accruals in line with
revenue growth and a shift in the business mix. While fixed income and derivatives
revenues declined by 6% (4% in USD terms), revenues from equity increased by 74%
(76% in USD terms), and revenues from corporate and investment banking increased
by 13% (15% in USD terms). In geographic terms, earnings showed a balanced split,
with 39% generated in North America, 35% in Europe and 26% in the rest of the
world.
Credit Suisse Asset Management posted net profit of CHF 111 m in the first
half, 8% down on 1998’s first-half results. The decline is due primarily to a greater
share of the mutual fund revenue contributed to Credit Suisse Group distribution chan-
nels. Increased investments in information technology and growth initiatives in turn led
to 11% higher operating expenses at CHF 319 m. Revenue increased by 5% to CHF
462 m. Discretionary assets under management grew strongly by 17.9% to CHF 250
bn, of which CHF 18.2 bn, or 8.6%, was from net new business. Total assets under
management rose by 13.1% to CHF 336 bn. Following the closure of the acquisition in
July 1999 of Warburg Pincus Asset Management, total assets under management
amounted to CHF 372 bn.
5

5. Winterthur achieved a net profit of CHF 503 m, up 19%, benefiting from a
lower effective tax rate and good operating results, up 1% to CHF 690 m, in spite of
severe weather losses, lower investment income as a result of lower realised capital
gains, and the absence of profits from the divested reinsurance business. Gross
premiums declined, as expected, by 3% to CHF 16.2 bn in the first half of 1999.
Given the extraordinary tax-driven surge of Swiss life premiums in the first quarter of
1998 (life premiums were up 39% in the first six months of 1998), the 7% decline
to CHF 8.5 bn in life premiums for the first half still represents a strong 1999 perform-
ance. As a better indication of core growth, the compounded annual growth rate for
the half years 1997–1999 was 14%. Non-life business grew 2% to CHF 7.7 bn in the
first half of 1999. Lower expenses in non-life operations reduced the combined ratio
from 110.1% to 109.6%. Assets under management rose by 7% to CHF 119.2 bn.
Adjustments in risk management and compliance
Following the turmoil in international financial markets in 1998, Credit Suisse Group
reviewed its risk exposure, particularly at Credit Suisse First Boston, with the objective
of reducing risk concentrations and earnings volatility. With respect to market risk, mea-
surement methodologies have been harmonised and total adjusted exposure reduced
since the beginning of the year. At Credit Suisse First Boston, average allocated capital
is down from 1998 to the first half of 1999 and the balance sheet is down by 5% in
USD terms from the end of 1998. A more significant system of monitoring and manag-
ing country risk exposure has been introduced. In addition, limits and relevant expo-
sures have been cut back significantly. With respect to the recently restructured US real
estate business, risk concentration has been reduced as a precautionary measure and
provisions increased.
The emphasis at Credit Suisse First Boston is on continuing to grow the client-
driven businesses involving less capital and risk. On a Group level, the contribution to
net profit from the less volatile asset accumulation and asset management businesses
(including insurance) increased from 58% for the first half of 1998 to 62% for the first
half of 1999.
The examination of Credit Suisse Group’s entities in Japan by the Financial
Supervisory Agency of Japan (FSA) led among other things to the revocation
of the licence of the Tokyo branch of Credit Suisse Financial Products. Following the
completion of the FSA’s examination, Credit Suisse Group initiated structural and
organisational adjustments as well as remedial measures to strengthen its compliance.
6

6. OVERVIEW OF BUSINESS
UNIT RESULTS
Credit Credit Credit Adjustments
Suisse Suisse Suisse including Credit
1st Credit Private First Asset Winterthur Winterthur Corporate Suisse
half 1999
Suisse Banking Boston Management Non-life Life Centre Group
in CHF m
2) 2)
1,685 2,250 7,420 462 1,415 774 –202 13,804
REVENUE
Personnel expenses 680 713 4,010 184 633 255 248 6,723
Other operating expenses 424 368 1,200 135 399 164 –280 2,410
1,104 1,081 5,210 319 1,032 419 –32 9,133
TOTAL OPERATING EXPENSES
581 1,169 2,210 143 383 355 –170 4,671
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 21 21 219 5 25 23 158 472
Valuation adjustments, provisions and losses1) 303 39 497 0 0 0 39 878
PROFIT BEFORE EXTRAORDINARY ITEMS/TAXES 257 1,109 1,494 138 358 332 –367 3,321
1)
Extraordinary income 19 9 0 0 35 63
0
3)
Extraordinary expenses 5 7 0 5 –6 14
3
Taxes 69 243 478 22 –303 647
138
202 868 1,016 111 –23 2,723
549
NET PROFIT BEFORE MINORITY INTERESTS
– of which minority interests 1 9 2 0 0 58
46
201 859 1,014 111 –23 2,665
503
NET PROFIT (after minority interests)
Average allocated equity capital 4,409 2,689 9,910 241 9,535
Return on average equity capital 9.2 n/a 20.5 n/a 10.6
Equity capital allocation as of 1 July 1999 4,389 2,753 10,555 294 9,149
1)
–12 –9 58 0
net of release/allocation of reserves for general banking risks
2)
defined as premiums earned (net), less claims incurred and expenses for processing claims as well as actuarial provisions, less commissions (net), plus investment
income from insurance business
3)
non-attributable interest expense
7

7. CONSOLIDATED INCOME STATEMENT
1st half 1999 1st half 1998 Change Change
in CHF m in CHF m in CHF m in %
Interest and discount income 7,767 10,398 –2,631 –25
Interest and dividend income from trading portfolios 2 216 2,973 –757 –25
Interest and dividend income from financial
investments from banking activities 240 198 42 21
Interest expenses from banking activities 7,406 10,711 –3,305 –31
2,817 2,858 –41 –1
NET INTEREST INCOME
Commission income from lending activities 286 209 77 37
Commissions from securities and investment transactions 4,741 3,977 764 19
Commissions from other services 194 174 20 11
Commission expenses 238 195 43 22
4,983 4,165 818 20
NET COMMISSION AND SERVICE FEE INCOME
3,618 2,954 664 22
NET TRADING INCOME
Premiums earned, net 13,525 15,463 –1,938 –13
Claims incurred and actuarial provisions 14,065 15,943 –1,878 –12
Commission expenses, net 1,019 1,256 –237 –19
Investment income from insurance business 3,819 4,105 –286 –7
2,260 2,369 –109 –5
NET INCOME FROM INSURANCE BUSINESS
Income from the sale of financial investments 238 201 37 18
Income from investment activities 67 87 –20 –23
– of which from participations valued according to the equity method 29 71 –42 –59
– of which from other non-consolidated participations 38 16 22 –
Real estate income 18 10 8 80
Sundry ordinary income 398 263 135 51
Sundry ordinary expenses 595 329 266 81
126 232 –106 –46
OTHER ORDINARY INCOME
13,804 12,578 1,226 10
NET OPERATING INCOME
Personnel expenses 6,723 6,028 695 12
Other operating expenses 2,410 2,160 250 12
9,133 8,188 945 12
TOTAL OPERATING EXPENSES
4,671 4,390 281 6
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 472 287 185 64
– of which amortisation of goodwill 40 1 39 –
Valuation adjustments, provisions and losses
from banking business 878 912 –34 –4
1,350 1,199 151 13
DEPRECIATION, VALUATION ADJUSTMENTS, LOSSES
3,321 3,191 130 4
GROUP PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES
Extraordinary income 63 542 –479 –88
Extraordinary expenses 14 435 –421 –97
Taxes 647 799 –152 –19
2,723 2,499 224 9
GROUP PROFIT
Minority interests 58 98 –40 –41
2,665 2,401 264 11
NET PROFIT (AFTER MINORITY INTERESTS)
8

8. CONSOLIDATED BALANCE SHEET
30 June 1999 31 Dec.1998 Change Change
in CHF m in CHF m in CHF m in %
ASSETS
Cash and other liquid assets 2,387 2,313 74 3
Money market claims 29,974 26,594 3,380 13
Due from banks 149,967 140,152 9,815 7
Claims from the insurance business 7,277 7,482 –205 –3
Due from customers 117,069 103,183 13,886 13
Mortgages 86,369 80,558 5,811 7
Securities and precious metals trading portfolios 112,459 102,515 9,944 10
Financial investments from the banking business 18,012 17,467 545 3
Investments from the insurance business 109,775 102,316 7,459 7
Non-consolidated participations 1,741 1,331 410 31
Tangible fixed assets 6,649 6,362 287 5
Intangible assets 1,519 802 717 89
Accrued income and prepaid expenses 10,391 9,628 763 8
Other assets 44,821 51,734 –6,913 –13
698,410 652,437 45,973 7
TOTAL ASSETS
Total subordinated claims 2,406 3,048 –642 –21
Total due from non-consolidated participations 726 227 499 –
30 June 1999 31 Dec.1998 Change Change
in CHF m in CHF m in CHF m in %
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities in respect of money market paper 12,557 14,735 –2,178 –15
Due to banks 186,062 154,048 32,014 21
Commitments from the insurance business 7,755 8,412 –657 –8
Due to customers in savings and investment accounts 45,236 46,618 –1,382 –3
Due to customers, other 196,317 178,561 17,756 10
Medium-term notes (cash bonds) 4,689 5,844 –1,155 –20
Bonds and mortgage-backed bonds 45,096 44,953 143 0
Accrued expenses and deferred income 10,721 11,778 –1,057 –9
Other liabilities 51,042 57,004 –5,962 –10
Valuation adjustments and provisions 6,942 5,670 1,272 22
Technical provisions for the insurance business 101,649 96,652 4,997 5
Reserves for general banking risks 2,004 2,048 –44 –2
Share capital 5,442 5,382 60 1
Capital reserve 11,698 10,993 705 6
Revaluation reserves from the insurance business 5,354 5,942 –588 –10
Retained earnings 1,026 –1,596 2,622 –
Minority interests in shareholders’ equity 2,097 2,178 –81 –4
Group profit 2,723 3,215 –492 –15
– of which minority interests 58 147 –89 –61
Total shareholders’ equity 30,344 28,162 2,182 8
698,410 652,437 45,973 7
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
Total subordinated liabilities 16,500 16,524 –24 0
Total liabilities due to non-consolidated participations 173 718 –545 –76
9

9. CONSOLIDATED OFF-BALANCE SHEET BUSINESS
30 June 1999 31 Dec. 1998 Change Change
in CHF m in CHF m in CHF m in %
CONTINGENT LIABILITIES
Credit guarantees in form of avals, guarantees
and indemnity liabilities 8,835 8,870 –35 0
Bid bonds, delivery and performance bonds,
letters of indemnity, other performance-related guarantees 4,567 4,471 96 2
Irrevocable commitments in respect of documentary credits 2,790 2,225 565 25
Other contingent liabilities 3,624 3,710 –86 –2
19,816 19,276 540 3
TOTAL CONTINGENT LIABILITIES
97,959 84,775 13,184 16
IRREVOCABLE COMMITMENTS
LIABILITIES FOR CALLS ON SHARES
59 59 0 0
AND OTHER EQUITY
235 262 –27 –10
CONFIRMED CREDITS
38,553 35,216 3,337 9
FIDUCIARY TRANSACTIONS
30 June 1999 30 June 1999 31 Dec. 1998 31 Dec. 1998
30 June 1999 Positive gross Negative gross 31 Dec. 1998 Positive gross Negative gross
Notional replacement replacement Notional replacement replacement
amount value value amount value value
in CHF bn in CHF bn in CHF bn in CHF bn in CHF bn in CHF bn
DERIVATIVE INSTRUMENTS
Interest rate products 5,739.6 67.1 64.0 4,676.9 74.1 69.5
Foreign exchange products 1,205.7 23.7 25.2 1,373.7 29.5 34.6
Precious metals products 43.3 2.5 3.2 34.8 1.4 2.0
Equity/index-related products 385.5 16.2 18.4 301.4 14.5 15.3
Other products 12.3 0.5 0.3 12.7 0.3 0.1
7,386.4 110.0 111.1 6,399.5 119.8 121.5
TOTAL
SELECTED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1st half 1999 1st half 1998
USD TRANSLATION RATES
Income statement 1.45 1.47
Balance sheet 1.55 1.52
Mortgage Other Without
collateral collateral collateral Total
ANALYSIS OF LOAN COLLATERAL AT 30 JUNE 1999 in CHF m in CHF m in CHF m in CHF m
Due from customers 5,858 71,889 39,322 117,069
Mortgages 86,369 86,369
Residential properties 55,739
Business and office properties 6,424
Commercial and industrial properties 10,604
Other properties 13,602
92,227 71,889 39,322 203,438
TOTAL LOAN COLLATERAL
At 31 December 1998 86,754 53,581 43,406 183,741
10

10. SELECTED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Banking business Insurance business Total
1st half 1999 1st half 1998 1st half 1999 1st half 1998 1st half 1999 1st half 1998
SPLIT OF INCOME STATEMENT INTO BANKING
AND INSURANCE BUSINESS in CHF m in CHF m in CHF m
in CHF m in CHF m in CHF m
Net interest income 2,817 0 2,817
2,858 0 2,858
Net commission and service income 4,983 0 4,983
4,165 0 4,165
Net trading income 3,618 0 3,618
2,954 0 2,954
Net income from insurance business 0 2,260 2,260
0 2,369 2,369
Other ordinary income/expenses net 199 –73 126
420 –188 232
11,617 2,187 13,804
10,397 2,181 12,578
NET OPERATING INCOME
Personnel expenses 5,835 888 6,723
5,108 920 6,028
Other operating expenses 1,850 560 2,410
1,584 576 2,160
7,685 1,448 9,133
Total operating expenses 6,692 1,496 8,188
3,932 739 4,671
3,705 685 4,390
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 424 48 472
287 0 287
Valuation adjustments, provisions and losses 878 0 878
912 0 912
1,302 48 1,350
Total depreciation, valuation adjustments 1,199 0 1,199
GROUP PROFIT BEFORE EXTRAORDINARY
2,630 691 3,321
2,506 685 3,191
ITEMS AND TAXES
Extraordinary income 63 0 63
542 0 542
Extraordinary expenses 14 0 14
421 14 435
Taxes 509 138 647
588 211 799
2,170 553 2,723
2,039 460 2,499
GROUP PROFIT
Minority interests 12 46 58
61 37 98
NET PROFIT
(AFTER MINORITY INTERESTS) 2,158 507 2,665
1,978 423 2,401
30 June 1999 31 Dec. 1998 Change Change
SECURITIES AND PRECIOUS METALS TRADING PORTFOLIOS in CHF m in CHF m in CHF m in %
Interest bearing securities and rights 76,928 68,830 8,098 12
listed on stock exchange 44,608 41,138 3,470 8
unlisted 32,320 27,692 4,628 17
– of which own bonds and medium-term notes 201 333 –132 –40
Equities 34,112 31,886 2,226 7
– of which own shares 3,591 2,344 1,247 53
Precious metals 1,419 1,799 –380 –21
112,459 102,515 9,944 10
TOTAL SECURITIES AND PRECIOUS METALS TRADING PORTFOLIOS
– of which securities rediscountable or pledgeable at central banks 44,997 28,186 16,811 60
11

11. CORPORATE AND INDIVIDUAL CUSTOMERS IN SWITZERLAND
In the first half of 1999 Credit Suisse achieved a net profit of CHF 201 m,
an increase of 294%, or CHF 150 m, on the previous year’s figure. ROE
grew from 2.4% to 9.2%. Total revenue rose by 8% to CHF 1,685 m, while
operating expenses fell by 4%. As a result, the cost/income ratio again
improved substantially – from 74.5% to 66.8%.
Credit Suisse enjoyed a successful first half. Revenues rose while costs fell, resulting in
a further improvement in efficiency. New products were well received by the market.
In only nine months since its launch, the MIX mortgage generated a volume of CHF
2.7 bn, adding to the overall growth in mortgage business. Credit Suisse again set a
benchmark for direct banking in Switzerland. Youtrade, which was launched on 12 April
1999, was developed in the space of only four months in collaboration with Credit
Suisse Private Banking. It offers investors the chance to trade – directly, rapidly and
securely – on the stock exchange around the clock via the Internet or by phone on
attractive terms and conditions. The exclusive offer of all three major credit cards
(American Express, Eurocard, Visa) in Switzerland enabled Credit Suisse to significantly
expand its credit card business. Approximately 50,000 new cards were sold.
In individual customer business, efforts to expand bancassurance are moving
ahead successfully. Earnings from client referrals between Winterthur and Credit Suisse
continued to increase aided by the trend towards greater securities saving, including
pension provision. Investment fund sales rose markedly and, at 17.5%, fund holdings
at Credit Suisse again expanded more strongly than the market as a whole. The new
interest-bearing euro account for private individuals exceeded expectations, with around
80% of these new accounts showing an average balance of over 15,000 euros.
Earnings on corporate customer
business improved due to the acquisition of
INCOME STATEMENT
new customers and more intensive product
1st half 1999 1st half 1998 Change
in CHF m in CHF m in %
usage. Lendings to small and medium-sized
enterprises increased slightly and the overall
Net interest income 1,105 1,031 7
risk profile of the credit portfolio improved.
Net commission and service fee income 458 400 15
The favourable economic outlook is encour-
Net trading income 107 111 –4
aging business and industry to plan more
Other ordinary income 15 18 –17
investment, boosting the lending business.
1,685 1,560 8
REVENUE
Direct banking (telephone and Internet
Personnel expenses 680 733 –7 transactions around the clock) continued to
Other operating expenses 424 412 3 grow rapidly. Since the end of 1998, the
number of customers with online banking
1,104 1,145 –4
TOTAL OPERATING EXPENSES
contracts has again risen substantially, to
GROSS OPERATING PROFIT 581 415 40
around 142,000. In the first six months of
Depreciation and write-offs on non-current assets 21 17 24
1999, 6.5 million transactions were
– of which amortisation of goodwill 6 0 –
processed via the Internet – as many as for
Valuation adjustments, provisions and losses* 303 333 –9 the whole of last year. Youtrade has attracted
more than 5,500 customers, of which half
PROFIT BEFORE EXTRAORDINARY ITEMS
257 65 295
AND TAXES
are new clients. Direct Net and youtrade now
account for around 20% of securities trades
Extraordinary income 19 24 –21
at Credit Suisse.
Extraordinary expenses 5 22 –77
Taxes 69 16 331
202 51 296
NET PROFIT
– of which minority interests 1 0 –
201 51 294
NET PROFIT (after minority interests)
–12 –14
* net of allocation of RGBR (reserves for general banking risks)
12

12. Results first half 1999: At CHF 97.4 bn, total assets at Credit Suisse were 4%
higher than the figure at 31 December 1998. Lendings to customers grew by over 3%
to CHF 87.8 bn, due mainly to the growth in residential mortgage business. As a result
of further shifts into investment funds, customer deposits dropped slightly, by 1% to
CHF 60.5 bn. At the same time, assets under management grew by CHF 6 bn, or 5%,
to CHF 126 bn, of which CHF 4 bn, or 3.3%, was net new funds.
Total income rose by 8% to CHF 1,685 m. Higher net interest income is a result
of both an increase in lending volume in parallel with risk-adjusted pricing and a
decrease in interest arrears. Commission income rose on the back of further improve-
ments in the investment fund and credit card businesses. The continuing decline in
operating expenses led to an increase in gross operating profit by 40% to CHF 581 m.
As a result, the cost/income ratio improved by 7.7 percentage points to 66.8%.
Valuation adjustments, provisions and losses amounted to CHF 303 m. This
figure includes statistically determined credit risk costs of CHF 300 m and CHF 3 m
in other provisions. Effective valuation adjustments were CHF 12 m lower than the
statistically anticipated value. Overall, the risk profile of the credit portfolio again
developed positively.
With a net profit of CHF 201 m, Credit
Suisse posted a profit for the first half of
BALANCE SHEET
1999 which is almost equivalent to the profit
30 June 1999 31 Dec.1998 Change
for the whole of 1998. The ROE after tax rose in CHF m in CHF m in %
from 2.4% to 9.2%. Cash and other liquid assets 1,139 869 31
Money market claims 532 563 –6
Due from banks 479 633 –24
Due from other business units 975 1,187 –18
Due from customers 26,631 26,245 1
Mortgages 61,141 58,596 4
Securities and precious metals trading
portfolio 1,515 54 –
Financial investments 1,731 1,873 –8
Participations 34 49 –31
Tangible fixed assets 2,269 2,278 0
Accrued income and prepaid expenses 237 194 22
RATIOS/KEY PERFORMANCE INDICATORS
Other assets 693 894 –22
1 st half 1999 1998
97,376 93,435 4
TOTAL ASSETS
Average allocated equity capital CHF m 4,409 4,183
Allocated equity capital Money market liabilities 0 0 –
CHF m (1 July/1 January 1999) 4,389 4,450 Due to banks 1,263 1,888 –33
Cost/income ratio 66.8% 74.5% Due to other business units 19,486 13,101 49
Return on average equity capital 9.2% 2.4% Due to customers in savings and
investment accounts 36,350 37,429 –3
Number of employees (30.6/31.12) 11,714 11,729
Due to customers, other 24,124 23,517 3
Pre-tax margin 16.1% 4.3%
Medium-term notes 4,687 5,841 –20
Staff expenses/operating expenses 61.6% 64.0%
Bonds and mortgage-backed bonds 5,203 5,399 –4
Staff expenses/total income 40.4% 47.0%
Accrued expenses and deferred income 580 548 6
Number of branches (30.6/31.12) 241 241
Other liabilities 998 903 11
Net interest margin 2.37% 2.20%
Valuation adjustments and provisions 133 169 –21
Loan growth (30.6/31.12) 3.8% 5.7%
Capital 4,552 4,640 –2
Deposit/loan ratio (30.6/31.12) 68.7% 71.8%
– of which minority interests 9 10 –10
Assets under management
97,376
CHF bn (30.6/31.12) 93,435 4
126 TOTAL LIABILITIES
120
13

13. SERVICES FOR PRIVATE INVESTORS IN SWITZERLAND AND ABROAD
In a market environment with unclear trends – weak euro, weak bond markets
and no direction to European equity markets – Credit Suisse Private Banking
performed well. Net profit for the first half of 1999 rose by 4% to CHF 859 m.
Assets under management grew by 9.2% or CHF 37 bn, with net new business
contributing CHF 12.6 bn. Credit Suisse Private Banking extended its lead in
product innovation and e-commerce.
With the launch of FundLab, an interactive investment fund database freely accessible
on the Internet, Credit Suisse Private Banking has become one of the most innovative
providers of mutual funds worldwide. Valuations of the Group’s own funds as well as
third party funds are published on the Internet, and at the same time mutual funds
products are actively marketed. This has led to a 29% increase in mutual fund sales in
the first half of 1999.
Credit Suisse Private Banking’s philosophy of offering its clients innovative prod-
ucts has been underlined by the development of FundLab and youtrade. Credit Suisse
Private Banking clients have the opportunity to register as members of the Internet-
based Investors’ Circle, providing online access to research information on markets and
companies. A significant quality push has been achieved with the setting up of an
extranet for independent asset managers, enabling them to access information to
underpin their advisory and sales endeavours. Credit Suisse Private Banking will continue
working to exploit the far reaching possibilities of Internet technology in response to
rapidly changing client requirements.
INCOME STATEMENT
1st half 1999 1st half 1998 Change
in CHF m in CHF m in %
Net interest income 420 446 –6
Net commission and service fee income 1,474 1,350 9
Net trading income 289 265 9
Other ordinary income 67 84 –20
2,250 2,145 5
REVENUE
Personnel expenses 713 644 11
Other operating expenses 368 358 3
1,081 1,002 8
TOTAL OPERATING EXPENSES
GROSS OPERATING PROFIT 1,169 1,143 2
Depreciation and write-offs on non-current assets 21 17 24
– of which amortisation of goodwill 4 4 0
Valuation adjustments, provisions and losses* 39 67 –42
PROFIT BEFORE EXTRAORDINARY ITEMS
1,109 1,059 5
AND TAXES
Extraordinary income* 9 35 –74
Extraordinary expenses 7 27 –74
Taxes 243 230 6
868 837 4
NET PROFIT
– of which minority interests 9 8 13
859 829 4
NET PROFIT (after minority interests)
–9 58
* net of release/allocation of RGBR (reserves for general banking risks)
14

14. Credit Suisse Private Banking has launched a number of new products in the first
half of 1999, such as US & Canada Private Equity Partnerships, which offer private
investors a very attractive, new investment opportunity. In addition, a series of theme
funds was launched. Very wealthy, internationally-based private clients now have Family
Office at their disposal – an integrated service package which supplements asset
management with advice on legal, tax, and estate planning issues, together with real
estate and fine art acquisition consultancy. Investment banking and insurance
products are also an integral part of the services provided.
Credit Suisse Private Banking has expanded internationally. Through targeted
acquisitions in Spain (Gestión Integral, private banking business from ABN AMRO), the
bank has enhanced its position as one of the leading private banking institutions in this
attractive market. Credit Suisse Private Banking also strengthened its presence in the
Middle East with the opening of a new representative office in Beirut, while in the
Bahamas, Credit Suisse Trust Limited was established.
Assets under management increased by 9.2% in the six
Results first half 1999:
months since 31 December 1998, from CHF 403 bn to CHF 440 bn. Of the increase,
3.1% represents net new business and 6.1% is the result of market performance.
Total revenue rose by 5% to CHF 2.25 bn, owing primarily to the 9% increase in
commission and service fee income.
The 8% increase in operating expenses is due mainly to higher investment in
information technology and human resources. Investments in human resources are
linked to the expansion of investment advisory services in Switzerland and abroad and
higher performance-related remuneration for staff. As a result of
both the economic recovery in the Asian markets and consistent BALANCE SHEET INFORMATION
credit risk management, valuation adjustments, provisions and losses 30 June 1999 31 Dec. 1998
were CHF 28 m lower than in the first half of 1998. Tax expenditure in CHF m in CHF m
Total assets
rose by 6% to CHF 243 m. Net profit (after minority interests) thus 101,629 83,913
rose by 4%, from CHF 829 m to CHF 859 m. Due from customers 28,672 22,544
– of which secured by mortgages 6,792 6,505
– of which secured by other collateral 17,843 14,042
RATIOS/KEY PERFORMANCE INDICATORS
1st half 1999 1998
Average allocated equity capital
CHF m 2,689 2,433
Allocated equity capital
CHF m (1 July/1 January 1999) 2,753 2,200
Cost/income ratio 49.0% 47.5%
Number of employees (30.6/31.12) 8,523 8,635
Pre-tax margin 49.4% 49.7%
Fee income/total income 65.5% 62.9%
Fee income/operating expenses 136.4% 135.0%
Assets under management
CHF bn (30.6/31.12) 440 403
Growth in assets
under management (30.6/31.12) 9.2% 12.6%
– of which volume 3.1% 1.9%
– of which performance 6.1% 10.7%
After-tax profit/average AUM 41 bp 41 bp
15

15. GLOBAL INVESTMENT BANKING
Credit Suisse First Boston produced a very good first-half performance in
favourable market conditions. Revenues rose 16% to a record USD 5.1 bn
(CHF 7.4 bn), producing a 21% return on equity. The improving quality of
earnings and marked strengthening of CSFB’s competitive position among
the world’s leading investment banks is particularly gratifying. Action taken
following the losses in Russia in 1998 accelerated CSFB’s risk reduction,
with value-at-risk and exposure levels down in the first half of 1999. The
growth of customer business more than replaced the revenues foregone.
In strategic terms Credit Suisse First Boston benefited from the successful acquisitions
of 1998, with smooth business integration and better-than-expected results. At the
same time, the Firm maintained a continued commitment to organic investment to
generate future growth. Initiatives were taken to strengthen risk/regulatory controls and
accelerate e-commerce expansion.
CSFB’s strategy since 1997 has been to strengthen its global special bracket
position through targeted growth of customer businesses and consolidation of the more
capital intensive fixed income and derivatives businesses (FID) in which the Firm
remains a market leader. This emphasis was accentuated through the lessons learnt in
Russia last year. In the first half of 1999, further progress was made in moderating
value-at-risk, capital required and balance sheet utilisation, combined with very good
INCOME STATEMENT
1st half 1999 1st half 1998 1st half 1999 1st half 1998
Change Change
in CHF m in USD m
in CHF m in % in USD m in %
Fixed Income & Derivatives 3,564 2,458
3,775 –6 2,568 –4
Equity 2,450 1,690
1,411 74 960 76
Corporate and Investment Banking 1,506 1,038
1,331 13 905 15
Private Equity 74 51
11 573 8 538
Other –174 –120
–16 988 –11 991
7,420 5,117
6,512 14 4,430 16
REVENUE
Personnel expenses 4,010 2,766
3,366 19 2,290 21
Other operating expenses 1,200 827
1,128 6 767 8
5,210 3,593
4,494 16 3,057 18
TOTAL OPERATING EXPENSES
2,210 1,524
2,018 10 1,373
GROSS OPERATING PROFIT 11
Depreciation and write-offs on non-current assets 219 151
138 59 94 61
– of which amortisation of goodwill 32 22
1 – 0 –
Valuation adjustments, provisions and losses* 497 343
256 94 174 97
1,494 1,030
1,624 –8 1,105
PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES –7
Extraordinary income* 0 0
9 –100 6 –100
Extraordinary expenses 0 0
4 –100 3 –100
Taxes 478 330
521 –8 354 –7
1,016 700
1,108 –8 754
NET LOSS/PROFIT –7
– of which minority interests 2 1
57 –96 39 –97
1,014 699
1,051 –4 715 –2
NET PROFIT (after minority interests)
58 40
82 56
* net of release of RGBR (reserves for general banking risks)
The business unit income statement differs from the Group’s legal accounts in presenting brokerage, execution and clearing expenses as part of operating expenses in
common with US competitors, rather than netted against revenues.
16

16. growth in customer business. The new “Strategic Risk Management” function has
already made a strong contribution, especially to improving the quality of risk review and
in reducing risk concentrations.
Credit Suisse First Boston has come through a very demanding period with an
excellent earnings recovery underpinned by strong market share advances and further
investment in the future. Stability of people, strategic direction and investment support
this achievement. The second half is unlikely
to offer such strong market conditions, but BALANCE SHEET
the Firm is increasingly well positioned to face 30 June 1999 31 Dec. 1998 Change
in CHF m in CHF m in %
its competitive challenges.
Cash 822 1,175 –30
Money market paper 21,811
The conditions in 18,860 16
Results first half 1999:
the financial markets were good overall during Due from banks 154,773 138,726 12
the first six months of the year, although they – of which securities lending and
reverse repurchase agreements 107,771 78,303 38
deteriorated during the second quarter in a
Due from other business units 1,837
number of fixed income areas. Strong rev- 1,894 –3
enue growth (16%) off 1998’s record first- Due from customers 70,221 61,522 14
half base reflects market share gains across – of which securities lending and
reverse repurchase agreements 37,140 28,634 30
the board. The Firm’s quality of earnings
Mortgages 9,658
improved, with diversification in favour of 7,178 35
equities and investment banking and the cus- Securities and precious metals
trading portfolio 108,389 100,963 7
tomer segments of fixed income and deriva-
Financial investments 7,343 10,072 –27
tives businesses. Precautionary credit and
Participations 754
related reserves were high based on an 436 73
increased medium-term cautionary outlook. Tangible fixed assets 2,372 1,947 22
The Firm’s business mix changed to greater Goodwill 526 535 –2
client orientation reflecting a less capital- Accrued income and prepaid expenses 6,895 6,845 1
intensive, more people-intensive strategy. Other assets 43,732 49,555 –12
Consequently, average allocated equity for – of which replacement value of derivatives 40,262 46,347 –13
the first half of 1999 declined 6% compared
429,133 399,708 7
TOTAL ASSETS
to 1998, whilst a strong 8.4%* BIS tier
in USD m 276,860 290,697 –5
TOTAL ASSETS
1 ratio was maintained; the pre-tax margin
declined due to this mix change, with Money market liabilities 18,887 19,923 –5
employee headcount up 5% over the last Due to banks 215,904 185,335 16
– of which securities borrowing and
repurchase agreements 66,894 74,915 –11
RATIOS/KEY PERFORMANCE INDICATORS
Due to other business units 17,722 16,350 8
1 st half 1999 1998
Due to customers, in savings
and investment deposits
Average allocated equity capital 134 180 –26
CHF m 9,910 10,567 Due to customers, other 77,481 71,157 9
Allocated equity capital – of which securities borrowing and
repurchase agreements
CHF m (1 July/1 January 1999) 36,373
10,555 22,714 60
9,340
Bonds and mortgage-backed bonds
BIS tier 1 ratio* 33,233
8.4% 33,464 –1
8.4%
Accrued expenses and deferred income
Cost/income ratio 7,638
73.2% 8,844 –14
71.1%
Other liabilities
Return on average equity capital 44,715
20.5% 53,007 –16
21.0%
– of which replacement value of derivatives
Number of employees (30.6/31.12) 14,394 14,126 41,217 49,481 –17
Valuation adjustments and provisions
Pre-tax margin 2,107
20.1% 1,638 29
25.0%
Capital
Staff expenses/total expenses 11,312
77.0% 9,810 15
74.9%
– of which minority interests
Staff expenses/total income 2,263
54.1% 1,743 30
51.7%
429,133 399,708 7
* applies to the bank Credit Suisse First Boston; core capital in- TOTAL LIABILITIES
cludes USD 125 m noncumulative preferred stock issued by a
in USD m 276,860 290,697 –5
TOTAL LIABILITIES
subsidiary and sold to unaffiliated investors
17

17. 12 months. Operating expenses pre-bonuses rose 9%, owing to the headcount
increase. Total compensation accruals rose as a result of revenue increases, business
mix and competitor accruals.
In geographic terms, CSFB’s unique balance was again reflected by revenues
split 39% North America, 35% Europe and 26% the rest of the world. The individual
divisions performed as follows (percentages reflect dollar figures):
Equities: Revenues increased 76%, with ROE significantly exceeding 30% despite
continued investment in people for further growth. The “cash” businesses boosted
revenues by over 100% from the previous year’s record first-half base, while derivatives
and other equity businesses also saw strong gains. Growth came from all geographic
regions. Excellent gains in primary and secondary market shares and in research rank-
ings around the world underpin this success. The positive impact of CSFB’s expanded
technology industry activities particularly benefited Equities (and Investment Banking).
Fixed Income & Derivatives (FID): In the first half, FID successfully tackled the
major challenges of integrating Credit Suisse Financial Products (following the repur-
chase of the 20% minority stake from Swiss Re in April) and restructuring the division
to accommodate tighter risk disciplines and capital availability. Despite reduced profit
potential following this risk reduction, revenues were held at the record levels of the
first half of 1998, achieving a creditable 23% ROE. The merged activities in Interest
Rate and Credit Products enjoyed excellent growth, while Emerging Markets’ earnings
stayed similar to the previous year’s first half. The outstanding performance in Latin
America offset the Russian gap and complemented good results from other regions.
A good recovery in Distressed Securities’ performance compensated declines in
Foreign Exchange and Money Markets. Real Estate products did not contribute to prof-
its (compared to 15% of CSFB’s total in the first half of 1998), reflecting a precau-
tionary reduction in risk concentration and increased provisioning levels. CSFB’s debt
capital markets underwriting position strengthened further to a global ranking of four.
Investment Banking (IBD): Revenues increased 15%, with improved profitability
despite large reductions in net interest income due to a smaller loan book and the
resultant 66% reduction in capital employed since 1997 (now on target at below USD
1 bn). Underlying growth was excellent, with M&A revenues the star performer, up
79% on the comparable 1998 period, and other investment banking product results
also rose. Credit Suisse First Boston has expanded its client coverage capacity in IBD
substantially during the last 18 months. While this heavy investment implies an initial
drag on profits, the resultant market share gains, complementing those of Equities,
enhance CSFB’s prospects for growth and diversified earnings.
Private Equity: The investment of CSFB’s globally managed private equity funds,
totalling USD 3.6 bn, is now accelerating. The current level of revenues reflect limited
harvesting of previous investments. Personnel was strengthened further in Europe.
18