3RD QUARTER 2001 RESULTS
PRESENTATION

§ Q3 2001 RESULTS SUMMARY

§ CONSOLIDATED RESULTS Q3 2001

§ ASSET QUALITY & CAPITAL ADEQUACY

§ BUSINESS UN...
HIGHLIGHTS Q3 2001

§ CHF 21 m net operating profit, reported loss of CHF 299 m, affected by
    s CSFB operating loss of ...
OVERVIEW Q3 2001 RESULTS (1/2)

                                                                                         C...
OVERVIEW Q3 2001 RESULTS (2/2)

§ CSFS: YTD operating ROE / ROIC 15.1%, 18.6% excl. CSPF
    s Insurance units had strong ...
GROWTH IN ASSETS UNDER MANAGEMENT

in CHF billion
                         25.5       7.3      11.1     153.7
 1,392.0    ...
REVENUE
§ Revenue drop reflecting market conditions
§ Trading and fee income down, insurance lower on weak investment retu...
BANK FEE & COMMISSION INCOME
§ Fees & commissions down 16% vs. Q2/01 on reduced market activity
§ Lower capital markets an...
OPERATING EXPENSES
§ Cost / income ratio * of 88.7% (Q2/01: 77.6%), reflecting lower top line


                          ...
OPERATING EXPENSES BY BUSINESS UNIT
§ Ongoing focus on costs across all BUs


                                            ...
CONSOLIDATED OPERATING INCOME STATEMENT


                                                              Q3/01    Q2/01    ...
REPORTED CONSOLIDATED INCOME STATEMENT


                                       Q3/01   Q2/01   Q3/00   Change
           ...
ASSET QUALITY
CAPITAL EXPOSURE & PROVISION DEVELOPMENT

Non-performing loans (NPLs) *, in CHF m

                    1,904...
TOTAL COUNTERPARTY EXPOSURE
INDUSTRY BREAKDOWN

Total exposure: CHF 418 bn                    Other
(as of 30 September 20...
TOTAL COUNTERPARTY EXPOSURE
BY RATING

in CHF bn
    373     405     423     431     418



   43%              43%       ...
CAPITAL ADEQUACY - CREDIT SUISSE GROUP


                                    09.01     06.01    03.01    12.00
in CHF m
BI...
BIS TIER 1 RATIO COMPONENTS, CONSOLIDATED
30 SEPTEMBER 2001

in CHF bn                                  Tier 1 ratio (cons...
BIS TIER 1 RATIO COMPONENTS, BANKING
30 SEPTEMBER 2001

in CHF bn                                     Tier 1 ratio (bankin...
WINTERTHUR SOLVENCY COMPONENTS
30 SEPTEMBER 2001
§ Calculated on a legal / statutory operating unit basis
§ Comfortable ca...
CREDIT SUISSE FINANCIAL SERVICES
HIGHLIGHTS Q3 2001

§ Net operating profit of CHF 225 m in Q3, down 55% on Q2 and down
  ...
WINTERTHUR INSURANCE
HIGHLIGHTS 9M 2001

§ Premiums up 15% vs. 9M/00 to CHF 14.7 bn, 11.6% organic growth

§ Combined rati...
WINTERTHUR LIFE & PENSIONS
HIGHLIGHTS 9M 2001

§ Premiums up 11% vs. 9M/00 to CHF 12.5bn, 7.6% organic growth
    s Strong...
CREDIT SUISSE BANKING
HIGHLIGHTS Q3 2001

§ Operating ROE of 14.1% (Q2 16.7%, Q3/00 13.7%)

§ CHF 153 m net operating prof...
CREDIT SUISSE PERSONAL FINANCE
HIGHLIGHTS Q3 2001

§ CSPF reporting format includes European onshore affluent offering as
...
CREDIT SUISSE PRIVATE BANKING
HIGHLIGHTS Q3 2001

§ CHF 5.0 bn (CHF 25.5 bn YTD) inflow of net new assets, or 1% for the
 ...
CREDIT SUISSE PRIVATE BANKING
DEVELOPMENT OF GROSS MARGIN

  Asset driven   Transaction driven   Other revenue


         ...
CREDIT SUISSE ASSET MANAGEMENT
HIGHLIGHTS Q3 2001

§ Revenue down 14% vs. Q2 and 10% vs. Q3/00 , YTD revenue up 3%
  incl....
CREDIT SUISSE FIRST BOSTON
HIGHLIGHTS Q3 2001

§ USD 123 m net operating loss reflecting challenging markets
§ Significant...
CREDIT SUISSE FIRST BOSTON
COST REDUCTION

§ Improve cost ratios and profitability, while preserving the franchise
§ USD 1...
CREDIT SUISSE FIRST BOSTON
MARKET SHARE
                                         Q3 2001 YTD                  Q3 2000 YTD
...
CREDIT SUISSE FIRST BOSTON
HEADCOUNT
                           pro-forma   01 Sept.   Target      Target     Target
     ...
CREDIT SUISSE FIRST BOSTON
PROGRESS UPDATE

§ Key messages from John Mack
    s Client first
    s One firm
    s Ownershi...
PRIORITIES / OUTLOOK

§ Challenges for the balance of 2001
    s Focus on cost initiatives across all Bus
    s Restructur...
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION

This presentation may contain projections or other forward-loo...
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credit-suisse Slides - Presentation to analysts and media

  1. 1. 3RD QUARTER 2001 RESULTS
  2. 2. PRESENTATION § Q3 2001 RESULTS SUMMARY § CONSOLIDATED RESULTS Q3 2001 § ASSET QUALITY & CAPITAL ADEQUACY § BUSINESS UNIT RESULTS § PRIORITIES / OUTLOOK § SUPPLEMENTS Slide 2
  3. 3. HIGHLIGHTS Q3 2001 § CHF 21 m net operating profit, reported loss of CHF 299 m, affected by s CSFB operating loss of CHF 204 m s Lower insurance profit due to lower investment income s Unrealised loss of CHF 400 m on Swiss Life investment s CHF 200 m provision on exposure to SAirGroup § Solid results in all other areas given market conditions § Progress on cost reduction - operating expense down 12% on Q2/01 § Cost reduction initiative at CSFB expected to eliminate USD 1 billion in operating cost by end of 2002, eliminate approx. 2,000 positions § New CSFS synergy potential - cost and revenues - being realised § Strong new asset inflow - CHF 48.5 bn YTD, up 34% vs. last year Slide 3
  4. 4. OVERVIEW Q3 2001 RESULTS (1/2) Change from Q3/01 9M/01 Q2/01 9M/00 Net operating profit, CHF m 21 3,358 - -37% Reported net profit, CHF m -299 2,417 - -53% Operating ROE 0.2% 10.9% Operating earnings per share, CHF 0.02 2.81 - -42% Net new assets, CHF bn 7.1 48.5 -57% +34% Change from 09.01 12.00 06.01 12.00 AuM, CHF bn 1,290.4 1,392.0 -11.1% -7.3% Operating figures exclude amortisation of acquired intangible assets and goodwill, reported numbers include these items. Slide 4
  5. 5. OVERVIEW Q3 2001 RESULTS (2/2) § CSFS: YTD operating ROE / ROIC 15.1%, 18.6% excl. CSPF s Insurance units had strong core results s CSB flat on previous year despite difficult markets s CSPF launched Germany & Spain, UK on hold due to markets s AuM down at CHF 264 bn due to sale of Winterthur International and market conditions; NNA of CHF 1 bn in Q3 § CSPB: CHF 5 bn NNA in seasonally weak Q3, CHF 25.5 bn YTD; 44 bp op. return on AuM in Q3 reflecting lower transaction volumes § CSAM: AuM down 14% vs. Q2 due to negative market movements § CSFB: CHF 204 m Q3 operating loss due to continued weakness in Equity and IBD; 10% YTD operating ROE (excl. retention payments) § CSG: Ongoing group-wide cost initiatives Slide 5
  6. 6. GROWTH IN ASSETS UNDER MANAGEMENT in CHF billion 25.5 7.3 11.1 153.7 1,392.0 4.6 CSAM CSFB CSFS CSPB 3.6 1,290.4 d) market acquisitions nnualise .6% a movements (+4 48.5 & structural CHF w assets effects net ne AuM 12/00 AuM 09/01 § Continued net inflows of CHF 7.1 bn in seasonally weak Q3 § CHF 3.6 bn from acquisitions, net of sale of Winterthur International Slide 6
  7. 7. REVENUE § Revenue drop reflecting market conditions § Trading and fee income down, insurance lower on weak investment return; net interest income up on strong fixed income business Change vs. 11,182 Q2 2001 in CHF m * 11,091 10,631 14% 14% 8,720 8,676 15% Balance sheet + 24% 13% 22% business 41% 44% 44% 50% Fees & - 16% 43% commissions 28% 16% 28% 26% 22% Trading - 38% 17% 19% 14% 17% 14% Insurance - 31% Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Total - 22% * totals include other income Slide 7
  8. 8. BANK FEE & COMMISSION INCOME § Fees & commissions down 16% vs. Q2/01 on reduced market activity § Lower capital markets and transaction driven volumes; increase in lending related fees in Q3 largely driven by syndication business Change vs. Q2 2001 in CHF m 5,001 4,886 4,695 237 221 161 3,814 3,953 169 1,250 1,222 240 Lending related + 49% 1,256 1,181 1,162 Portfolio Mgmt. - 7% 1,764 2,187 2,033 Underwriting & 1,376 1,389 Corporate - 32% Finance 1,518 1,116 1,195 1,104 1,101 Brokerage - 1% 121 333 382 365 310 Other - 15% -228 -110 -220 -235 -249 Commission exp. + 6% Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Total - 16% Slide 8
  9. 9. OPERATING EXPENSES § Cost / income ratio * of 88.7% (Q2/01: 77.6%), reflecting lower top line Change vs. 8,467 8,675 Q2 2001 in CHF m 7,868 7,732 6,030 5,959 6,301 5,154 5,276 Personnel - 11% (194) (209) expenses 4,431 (181) (189) (retention pmts.) (2,017) (2,780) (2,552) (1,944) (w/o bonuses) - 24% (1,856) 2,308 1,954 2,214 1,954 Other op. exp. - 12% 1,549 321 406 483 502 502 Depreciation * 0% Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Total - 11% * excl. amortisation of acquired intangible assets and goodwill Slide 9
  10. 10. OPERATING EXPENSES BY BUSINESS UNIT § Ongoing focus on costs across all BUs Change vs. Q2 2001 in CHF m 1,628 1,717 1,735 1,631 CSFS - 5% 673 706 704 288 326 661 CSPB - 6% 1,527 272 CSAM - 17% 321 652 283 5,592 5,555 5,086 CSFB - 8% 4,806 3,632 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 BU totals before depreciation, amortisation of acquired intangible assets and goodwill Slide 10
  11. 11. CONSOLIDATED OPERATING INCOME STATEMENT Q3/01 Q2/01 Q3/00 Change CHF m CHF m CHF m to Q2/01 Operating income 8,720 11,182 8,675 -22% Operating expenses 7,230 8,173 5,979 -12% Gross operating profit 1,490 3,009 2,696 -50% Depreciation *, write-offs 502 502 321 0% Valuation adj., provisions & losses 653 412 234 58% Operating profit pre e.o. & tax 335 2,095 2,141 -84% e.o. items, net 6 0 -42 - Taxes 184 400 390 -54% Net operating profit bef. minorities 157 1,695 1,709 -91% Net operating profit 21 1,611 1,654 -99% * excl. amortisation of acquired intangible assets and goodwill Slide 11
  12. 12. REPORTED CONSOLIDATED INCOME STATEMENT Q3/01 Q2/01 Q3/00 Change CHF m CHF m CHF m to Q2/01 Net operating profit 21 1,611 1,654 -99% Amort. of acquired intangible assets 197 202 - -2% tax effect -67 -65 - 3% Amortisation of goodwill 190 186 49 2% Reported net profit -299 1,288 1,605 - Slide 12
  13. 13. ASSET QUALITY CAPITAL EXPOSURE & PROVISION DEVELOPMENT Non-performing loans (NPLs) *, in CHF m 1,904 CSFB CSFB CSFB 1,887 in USD in USD 1,484 1,012 1,792 1,479 1,804 2,668 2,895 12,105 CSB & 10,964 9,493 8,347 CSPB 7,926 7,077 6,270 YE 98 YE 99 06/00 YE 00 03/01 06/01 09/01 NPLs as %age of credit exp. * 4.1% 3.4% 2.8% 2.4% 2.3% 2.3% 2.2% Coverage ratio of NPLs 63% 63% 61% 63% 62% 60% 56% * includes loans and loan equivalents Slide 13
  14. 14. TOTAL COUNTERPARTY EXPOSURE INDUSTRY BREAKDOWN Total exposure: CHF 418 bn Other (as of 30 September 2001) Individuals 0.9% Services 15.4% 15.6% Public Selected Industries 3.5% Manufacturing 11.6% § Automotive: 0.5% § Computer: 2.8% RE & Const. § Energy: 4.9% 8.5% § Health Care: 1.3% Energy/Environ. Financial 4.9% § Telecom: 3.2% Enterprises Agri/Mining 37.8% 1.7% Slide 14
  15. 15. TOTAL COUNTERPARTY EXPOSURE BY RATING in CHF bn 373 405 423 431 418 43% 43% R1 - R3 44% 45% 44% (AAA - A) 38% 35% 36% R4 36% 37% (BBB) 13% 16% 16% R5 - R7 or N/R 14% 15% (non-investment grade) 6% 5% 5% 4% 4% R8 YE 99 YE 00 03/01 06/01 09/01 (impaired / non-performing) Slide 15
  16. 16. CAPITAL ADEQUACY - CREDIT SUISSE GROUP 09.01 06.01 03.01 12.00 in CHF m BIS tier 1 capital, consolidated 21,325 25,970 25,699 27,111 BIS tier 1 capital, banking 19,771 22,151 21,795 20,999 BIS risk-weighted assets, consolidated 237,347 261,550 250,392 239,465 BIS risk-weighted assets, banking 234,379 256,317 245,074 231,939 BIS tier 1 ratio, consolidated 9.0% 9.9% 10.3% 11.3% BIS tier 1 ratio, banking 8.4% 8.6% 8.9% 9.1% Slide 16
  17. 17. BIS TIER 1 RATIO COMPONENTS, CONSOLIDATED 30 SEPTEMBER 2001 in CHF bn Tier 1 ratio (consolidated) 237 Other 15 (incl. WGR) 11.8 11.3 10.3 9.9 9.0 37.9 88 CS Goodwill 13.2 1999 2000 Q1/01 Q2/01 Q3/01 other adj. * 3.4 (3.0) adjusted WGR capital Tier 1 21.3 134 CSFB capital, 21.3 237 total Equity 9.0% RWA * other adjustments include WGR minorities, own shares, dividends Slide 17
  18. 18. BIS TIER 1 RATIO COMPONENTS, BANKING 30 SEPTEMBER 2001 in CHF bn Tier 1 ratio (banking) 234 Other 12 (excl. WGR) 9.1 9.1 8.9 8.6 8.4 37.9 88 CS Goodwill 13.2 1999 2000 Q1/01 Q2/01 Q3/01 other adj. * 3.4 1.55 WGR net equity pickup Tier 1 19.8 134 CSFB capital, 19.8 234 banking Equity 8.4% RWA * other adjustments include WGR minorities, own shares, dividends Slide 18
  19. 19. WINTERTHUR SOLVENCY COMPONENTS 30 SEPTEMBER 2001 § Calculated on a legal / statutory operating unit basis § Comfortable capital / solvency position, exceeds requirements in all locations § EU solvency definition used as a proxy in CHF bn 9.1 Proxy calculation (EU approach) net tech. 0.5 based on top-down estimates insurance adj. Real estate 3.8 6.5 value adj. Non-life: 16% of 2.6 premiums Life: Reported 9.1 4% of tech. 4.8 provisions equity 6.5 3.9 (1% for unit-linked) plus risk capital EU 140% EU req. capital solvency Slide 19
  20. 20. CREDIT SUISSE FINANCIAL SERVICES HIGHLIGHTS Q3 2001 § Net operating profit of CHF 225 m in Q3, down 55% on Q2 and down 49% on Q3/00, largely due to lower investment income from insurance businesses § YTD net operating profit of CHF 1,157 m s Down 17% on good first nine months 2000 s Down 1.5% excluding investment-related loss at CSPF § YTD 15.1% operating ROE / ROIC or 18.6% excluding CSPF § AuM at CHF 263.9 bn (-5.2% vs. 06/01; -3.6% vs. 12/00) § Net new assets CHF 4.6 bn YTD, CHF 1.1 bn in Q3 Slide 20
  21. 21. WINTERTHUR INSURANCE HIGHLIGHTS 9M 2001 § Premiums up 15% vs. 9M/00 to CHF 14.7 bn, 11.6% organic growth § Combined ratio stable at 106.4% (106.5% 9M/00) s Claims ratio slightly up at 77.4% (77.1% 9M/00), due to claims in N-America in H1, clear improvements in Europe (UK, Italy, Spain) s Expense ratio down at 29.0% (9M/00: 29.4%) on expense control § Investment return of 7.2% (4.8% current, 2.4% realised gains), same as 9M/00 (4.7%/2.5%); Q3: 4.7% (4.2% current, 0.6% realised gains) § CHF 452 m net operating profit, down 16% over 9M/00 § Strategic progress s Winterthur International divested s Completion of acquisition of CGNU business in Belgium s Long-term alliances with Pearl and Prudential in UK non-life Slide 21
  22. 22. WINTERTHUR LIFE & PENSIONS HIGHLIGHTS 9M 2001 § Premiums up 11% vs. 9M/00 to CHF 12.5bn, 7.6% organic growth s Strong contribution from UK and Spain s Lower share of unit-linked products § CHF 2.6 bn net new assets vs. CHF 1.9 bn for 9M/00 § Expense ratio up to 11.5% (9M/00: 11.0%) due to e.o. items in Q2 § Investment return reduced to 5.6% (4.3% current, 1.2% realised gains) vs. 7.1% for 9M/00 (4.4% current, 2.7% realised gains) § CHF 473 m net operating profit, up 19% over 9M/00 on good operating results in Switzerland, Germany, UK and Netherlands § Strategic progress s Improvement of IT systems for management of closed blocks s Europe Life ready for Reister product in Germany Slide 22
  23. 23. CREDIT SUISSE BANKING HIGHLIGHTS Q3 2001 § Operating ROE of 14.1% (Q2 16.7%, Q3/00 13.7%) § CHF 153 m net operating profit, down 14% vs. Q2 (up 4% on Q3/00) s Net interest income stable (down 1.5% vs. Q2, up 1.2% vs. Q3/00); YTD up 4% vs. 9M/00 s Net interest margin of 231 bp (238 bp in Q2; 241 bp in Q3/00); 237 bp YTD vs. 238 bp for 9M/00 s Commission income down 9% vs. Q2 on lower transaction volumes (down 13% vs. Q3/00) s Operating expense down 5% vs. Q2 (-1% vs. Q3/00) § Stable credit quality, valuation adjustments in Q3 same as in Q2 and less than half of Q3/00 Slide 23
  24. 24. CREDIT SUISSE PERSONAL FINANCE HIGHLIGHTS Q3 2001 § CSPF reporting format includes European onshore affluent offering as well as youtrade § Operations launched in Spain and Germany § Continued growth in established areas s AuM CHF 5.3 bn (+ 3.9% vs. 6/01) s youtrade over 27,500 customers, AuM 0.7 bn s Net new assets in Personal Finance of CHF 0.1 bn in Q3 § CHF 90 m net operating loss in Q3 (CHF 286 m YTD) reflecting rollout in Spain and Germany Slide 24
  25. 25. CREDIT SUISSE PRIVATE BANKING HIGHLIGHTS Q3 2001 § CHF 5.0 bn (CHF 25.5 bn YTD) inflow of net new assets, or 1% for the quarter (5.6% YTD) § Net operating profit of CHF 513 m (CHF 1,734 m YTD), 11% below Q2/01 (YTD down 15% on good 9M/00) § Net margin 44 bp (49 bp YTD), gross margin 114 bp (125 bp YTD) § Revenues down 11% vs. Q2 and 14% vs. Q3/00 on significantly lower transaction volumes and weaker dollar § Operating expense down 6% to CHF 661m over Q2, up 1% vs. Q3/00 (YTD up 7% vs. 9M/00) Slide 25
  26. 26. CREDIT SUISSE PRIVATE BANKING DEVELOPMENT OF GROSS MARGIN Asset driven Transaction driven Other revenue -10 bp in bp 135 137 125 125 120 22 27 114 17 21 18 alternative investments ì 90 50 45 41 39 brokerage î 32 trading î 60 30 63 65 67 64 65 alternative investments ì 0 9M/00 Q1/01 Q2/01 Q3/01 9M/01 Slide 26
  27. 27. CREDIT SUISSE ASSET MANAGEMENT HIGHLIGHTS Q3 2001 § Revenue down 14% vs. Q2 and 10% vs. Q3/00 , YTD revenue up 3% incl. DLJ acquisition impact in 2001, 8% down on pro-forma 2000 § Expenses down 18% vs. Q2 and 8% vs. Q3/00, YTD expenses up 6% incl. DLJ impact in 2001, 5% down on pro-forma 2000 § Net operating profit of CHF 34 m, down 58% on Q2 (CHF 183 m YTD, down 23% vs. 9M/00); higher tax charge reversing prior period benefits § CHF (0.7) bn (CHF 7.3 bn YTD) net new discretionary assets § Acquisition of SLC Asset Management Group in UK Slide 27
  28. 28. CREDIT SUISSE FIRST BOSTON HIGHLIGHTS Q3 2001 § USD 123 m net operating loss reflecting challenging markets § Significantly lower primary equity and M&A volumes (YTD industry-wide down 30% and 50% respectively) § IBD revenue USD 596 m, down 23% on Q2, although still #1 in number of M&A deals and in high yield § Fixed Income revenue USD 1.6 bn, matches record Q1, 7% up on Q2; strong result from rates business § Equity revenue USD 666 m, down 45% on Q2 in weak markets, depressed by poor corporate results and 11 September fall-out § Financial Services Group adversely affected by decline in retail trading § Personnel costs down 8% on Q2, operating expenses down 6%; but cost / income and comp. / revenue ratios still too high (YTD 85% and 60% respectively) Slide 28
  29. 29. CREDIT SUISSE FIRST BOSTON COST REDUCTION § Improve cost ratios and profitability, while preserving the franchise § USD 1 bn cost reduction programme s 2,000+ headcount reduction (approx. 70% of cost savings) s Reduced spending (“demand” and “supply” management) and other operating efficiencies (approx. 30% of cost savings) § May also exit some non-core businesses (incremental to USD 1 bn savings) § Bulk of cost savings to be realised in 2002 s Headcount reduction will be largely complete by end 2001 s Spending changes, other efficiency projects and dispositions to be implemented throughout 2002 s Some expenses will vary with revenue / business volume changes - focus on USD 1 bn savings, and on cost / income, comp. / revenue Slide 29
  30. 30. CREDIT SUISSE FIRST BOSTON MARKET SHARE Q3 2001 YTD Q3 2000 YTD (pre-merger) Rank Share Gap to #3 Rank Share Gap to #3 Global M&A 3 23.9% - 5 18.4% 2.1% US 2 34.4% - 6 15.6% 11.4% Global Debt 4 8.5% < 0.1% 4 7.7% 0.7% U.S. 3 9.4% - 4 8.2% 0.9% High Yield 1 16.2% - 7 5.7% 6.7% Global Equity 5 9.0% 2.4% 4 9.4% 4.3% Americas 5 13.5% 1.2% 4 12.8% 0.6% Europe 5 8.6% 1.3% 7 5.4% 4.5% Research * Equity/North America 2 52 R - 4 38 R 8R Equity/Europe 1 41 R - 4 26 R 10 R Fixed Income/All-America 3 32 R - 9 10 R 7R * R=Number of ranked analysts Slide 30
  31. 31. CREDIT SUISSE FIRST BOSTON HEADCOUNT pro-forma 01 Sept. Target Target Target pre-merger 09.2000 2001 12.2001 vs. vs. pro-forma pre-merger Investment Banking 2,664 4,553 3,905 Equity 2,602 3,732 3,228 Fixed Income 1,726 2,543 2,954 PCS - 971 1,137 Private Equity 73 350 366 Other 37 221 93 Total Front 7,102 12,370 11,683 10,271 - 17% + 45% Financial Services - 6,540 5,392 4,929 - 25% +++ IT 3,259 4,218 4,115 3,897 - 8% + 20% Operations 2,269 2,635 2,313 2,248 - 15% - 1% Finance & Risk 2,107 2,445 1,975 1,861 - 24% - 12% Administration 1,761 2,327 2,237 2,124 - 9% + 21% Total Back 9,396 11,625 10,640 10,130 - 13% + 8% CSFB TOTAL 16,498 30,535 27,714 25,330 - 17% + 54% > 2,000 (7%+) reduction Slide 31
  32. 32. CREDIT SUISSE FIRST BOSTON PROGRESS UPDATE § Key messages from John Mack s Client first s One firm s Ownership culture s Respect / dignity s Diversity initiative s Here to build, not cut costs - but must be realistic in current environment § Key management additions s Stephen Volk s Tom Nides s Gary Lynch s Stuart Breslow s Jeff Salzman Slide 32
  33. 33. PRIORITIES / OUTLOOK § Challenges for the balance of 2001 s Focus on cost initiatives across all Bus s Restructuring / right-sizing CSFB s Implement new CSFS structure s Maintain / expand positions § Q4 continues to be challenging with continued weak markets and transaction volumes s CSFB operating result not expected to improve vs. Q3 s CSFB expected to take certain one-time charges associated with restructuring and right-sizing § Remain optimistic about long-term trends for financial services industry and CSG's strategic position Slide 33
  34. 34. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This presentation may contain projections or other forward-looking statements related to Credit Suisse Group that involve risks and uncertainties. Readers are cautioned that these statements are only projections and may differ materially from actual future results or events. Readers are referred to the documents filed by Credit Suisse Group with the SEC, specifically the most recent filing on Form 20-F, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including, among other things, risks relating to market fluctuations and volatility, significant interest rate changes, credit exposures, cross border transactions and foreign exchange fluctuations, impaired liquidity, competition and legal liability. All forward-looking statements are based on information available to Credit Suisse Group on the date of its posting and Credit Suisse Group assumes no obligation to update such statements unless otherwise required by applicable law. Slide 34
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