2008-11-19 Vontobel Wealth Manager Day 2008

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2008-11-19 Vontobel Wealth Manager Day 2008

  1. 1. Vontobel Bankentag Zurich, November 19, 2008 Christoph Brunner, COO Private Banking
  2. 2. Cautionary statement Cautionary statement regarding forward-looking and non-GAAP information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties, and we might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking statements. A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions we express in these forward-looking statements, including those we identify in quot;Risk Factorsquot; in our Annual Report on Form 20-F for the fiscal year ended December 31, 2007 filed with the US Securities and Exchange Commission, and in other public filings and press releases. We do not intend to update these forward-looking statements except as may be required by applicable laws. This presentation contains non-GAAP financial information. Information needed to reconcile such non-GAAP financial information to the most directly comparable measures under GAAP can be found in Credit Suisse Group's third quarter report 2008. Vontobel Bankentag November 19, 2008, Page 2
  3. 3. Agenda Status and Strategy Overview International Growth Client Centricity The Integrated Bank Efficiency Management Wrap-up Vontobel Bankentag November 19, 2008, Page 3
  4. 4. Performance has held up well in Private Banking WM net revenues (CHF bn) WM PTI (CHF bn) +13% p.a. +14% p.a. 9.6 3.9 8.2 3.2 6.7 7.1 6.7 2.7 2.6 2.41) 2.1 04 05 06 07 9m08 04 05 06 07 9m08 CRB net revenues (CHF bn) CRB PTI (CHF bn) +6% p.a. +13% p.a. 1.4 1.6 3.4 3.5 3.9 1.1 1.3 1.3 3.3 3.0 04 05 06 07 9m08 04 05 06 07 9m08 1) Excluding provisions related to auction rate securities of CHF 310m Vontobel Bankentag November 19, 2008, Page 4
  5. 5. Strong NNA growth and resilient gross margin in Wealth Management NNA (CHF bn) Gross margin (bps) +7.5% +7.3% +6.4% 1) +6.2% +5.8% 118 113 112 115 114 50.5 50.2 42.8 Transaction-based 40.2 40 35 29 31.4 40 38 Recurring 78 73 74 80 85 1) 04 05 06 07 9m08 04 05 06 07 9m08 1) Annualized Vontobel Bankentag November 19, 2008, Page 5
  6. 6. Challenges in Private Banking ! Short-term: Industry challenges Credit Suisse Private Banking - Lower asset base is comparatively well positioned - Less client activity - Less trust in financial institutions and ! Stable business with sustained complex products profitability despite market turbulences ! Medium-term: Regulatory challenges ! Unique value proposition based - Cross-border regulation on Client Centricity and the - Investor protection Integrated Bank ! Long-term: Intact growth prospects ! Global presence - Private Investment Banking - Emerging markets - Generational transfers of wealth Vontobel Bankentag November 19, 2008, Page 6
  7. 7. We continue to persistently implement our strategy Premier global Market share Integrating Productivity private bank International Client gains in the banking and financial Best people growth Centricity Switzerland businesses performance Premier bank in Switzerland Actively managed portfolio of initiatives and projects Vontobel Bankentag November 19, 2008, Page 7
  8. 8. Agenda Status and Strategy Overview International Growth Client Centricity The Integrated Bank Efficiency Management Wrap-up Vontobel Bankentag November 19, 2008, Page 8
  9. 9. Strong growth in international mature markets and increased presence in key emerging markets ! Switzerland: 217 CRB locations, 80 WM locations ! Austria: 2 locations ! France: 3 locations London ! Germany: 14 locations Guernsey Luxembourg ! Italy: 38 locations Frankfurt ! Spain: 3 locations Paris Vienna ! United Kingdom: 4 locations Lisbon Zurich Milan Madrid Monaco St. Petersburg Moscow Northbrook Boston Gibraltar San Francisco Chicago Kiev Greenwich Beijing Philadelphia New York Istanbul Almaty Los Angeles Dallas Athens Baltimore Beirut Irvine Houston Atlanta Palm Beach Tel Aviv Shanghai Miami Nassau Cairo Manama Doha Dubai Guangzhou Mexico Riyadh Abu Dhabi Hong Kong Taipei Mumbai Bangkok Panama Caracas Bogotá Kuala Lumpur Singapore Lima Jakarta Rio de Janeiro São Paulo Johannesburg Montevideo Buenos Aires Cape Town Sydney Santiago Melbourne 18 new locations/ Locations 4 new markets since 2007 Vontobel Bankentag November 19, 2008, Page 9
  10. 10. Why clients book cross-border Geographical risk diversification Enhanced product and service offering Confidentiality Multi-domiciled clients Vontobel Bankentag November 19, 2008, Page 10
  11. 11. Strong hiring in 2008 with international focus RMs WM ! 95% of RM growth internationally 3,480 470 APAC: 140 ! RM fluctuation rate well below 8% Americas: 160 3,010 EMEA: 150 ! 2/3 of RMs hired externally, CH: 20 1/3 of RMs developed internally ! 40% of NNA from recent hires ! Break-even of new hires typically after 18-24 months 3Q07 3Q08 Net new ! 5-7 years to reach average RM RMs profit level Vontobel Bankentag November 19, 2008, Page 11
  12. 12. Agenda Status and Strategy Overview International Growth Client Centricity The Integrated Bank Efficiency Management Wrap-up Vontobel Bankentag November 19, 2008, Page 12
  13. 13. Client Centricity - Overview Client understanding Client Client Life- ycle phase segmentation satisfaction e c r t yp io v ha Be Source of wealth Client value propositions Vontobel Bankentag November 19, 2008, Page 13
  14. 14. Client understanding based on Advisory Process ! Proven concept - In use since 2003 - Honored for innovation and strategic achievement ! Global roll-out - Fully rolled out in Switzerland - Roll-out to all major international locations until end of 2008 ! State-of-the-art tool support - Systematically integrated in front IT applications - Documented in dedicated client reportings ! Continuous enhancement - e.g., - Core-Satellite approach - Risk Analyzer Vontobel Bankentag November 19, 2008, Page 14
  15. 15. Client segmentation: Multi-dimensional action oriented segmentation Client behavior Basis for value ! Risk profile propositions Client background ! Behavior type ! Client targeting ! Life cycle/age ! Sophistication ! Client coverage ! Domicile/residence ! Trading activity ! Product offering ! Family situation Behavior ! Client development ! Gender/hobbies type Client wealth ! AuM (total/with CS) ! Source of wealth Vontobel Bankentag November 19, 2008, Page 15
  16. 16. Segment specific value propositions: Example Entrepreneurs ! Become the premier bank for Entrepreneurs to manage both Overall ambition private and corporate wealth ! Dedicated coverage teams in Switzerland and key international Client targeting markets & ! Seasoned RMs (10+ years advisory experience) coverage ! Solution Partners leveraging the Integrated Bank ! Succession planning, tax advisory and financial planning ! Investment Banking services: Corporate finance, debt/equity Anchor products consulting, structured finance & ! Exclusive investment opportunities – matchmaking services ! Asset Management services: Asset protection, short term asset management, pension solutions ! Plus in Switzerland: Comprehensive Corporate Banking offering Vontobel Bankentag November 19, 2008, Page 16
  17. 17. Client satisfaction is key to our business Percentage of clients (%) NNA growth (%) Net promoter score1) (%) Extremely satisfied/ 63 4 42 Very satisfied Satisfied 31 2 -47 Source: 2007 sample of Swiss clients Vontobel Bankentag 1) % promoters (scale 9/10) minus % detractors (scale 1-6) based on the question: quot;How likely is November 19, 2008, Page 17 it that you would recommend Credit Suisse to a friend or a colleague?quot; (scale 1-10)
  18. 18. Agenda Status and Strategy Overview International Growth Client Centricity The Integrated Bank Efficiency Management Wrap-up Vontobel Bankentag November 19, 2008, Page 18
  19. 19. Unique value proposition to Private Banking clients through integrated coverage and solution delivery Client Relationship Manager Solution Specialists Investment Banking Private Banking Asset Management ! Traditional services: ! Financial planning and ! Traditional Investment Equities, FI, FX, prime investment consulting: funds: Equities, FI,.. services, research,.. Pension planning, trust ! Discretionary mandates ! Alternative Investments: services, inheritance & tax ! Alternative Investments: Structured products, consulting,.. Private equity, hedge commodities,.. ! Banking products: Pay- funds, real estate,.. ! Corporate Finance ments, deposits, lending, ! Labeled fund solutions Services: M&A, equity/ leasing, cards,.. ! ... debt capital markets,.. Shared Services Vontobel Bankentag November 19, 2008, Page 19
  20. 20. Leveraging the Integrated Bank: Key examples International growth Solution Partners team ! Leverage of local IB and ! Enabling of RMs to find out AM presences for PB quickly what the entire bank market entries can offer ! Expanded client value ! Leverage of IB and AM capa- propositions in bilities for UHNWI clients international locations ! Customized solutions across through leverage of One all asset classes with Bank capabilities institutional discipline Alternative investments Key Client Coverage ! Leverage of best-in-class ! Cross-divisional client capabilities in IB and AM coverage management for ! In addition, comprehen- largest clients in all regions sive 3rd party advisory ! Particularly broad effort in services Switzerland, with 1,250 ! Joint delivery of full clients covered and over product services along 1,150 employees involved life cycle in cross-divisional teams Vontobel Bankentag November 19, 2008, Page 20
  21. 21. Integrated Bank model maintains momentum despite challenging markets Gross margin with Wealth Management clients (in bps)1) 129 130 Referred 14 16 to IB/AM 115 114 Booked in Wealth Management 9m07 9m08 1) Annualized Vontobel Bankentag November 19, 2008, Page 21
  22. 22. Agenda Status and Strategy Overview International Growth Client Centricity The Integrated Bank Efficiency Management Wrap-up Vontobel Bankentag November 19, 2008, Page 22
  23. 23. Building blocks of PB Efficiency Management PB Efficiency Management framework (part of Bank Efficiency Management) Efficiency Management building blocks Enabler/supporting initiatives Centers of Excellence Incenti- Efficiency Demand Client Efficiency Planning & visation transparency manage- profitability initiatives & budgeting & remu- & reporting ment steering projects neration Operational Excellence Vontobel Bankentag November 19, 2008, Page 23
  24. 24. Centers of Excellence and Operational Excellence Initiatives Benefits Centers of ! PB CoE in Wroclaw/Poland: ! Leverage of global workforce and Excellence - PB Operations know-how (CoE) - COO Services ! Economies of scale and location ! IT CoEs – e.g., Pune/India, ! Higher focus on core businesses Singapore ! Reduced time-to-market and more flexibility Operational ! OE as quot;Business as usualquot;: ! Continuous improvement of Excellence - > 5,000 OE trainings since business processes and project (OE) beginning management - Currently, 120 'Black Belts'/ ! Global leverage of quot;Lean Sigmaquot; 20 'Master Black Belts' approach Vontobel Bankentag November 19, 2008, Page 24
  25. 25. Efficiency initiatives and projects Revenue ! Active product and service management efficiency ! Excellence in Price Management Cost ! Numerous cost projects based on Operational Excellence efficiency ! Cost savings of CHF 100-200m p.a. Vontobel Bankentag November 19, 2008, Page 25
  26. 26. Agenda Status and Strategy Overview International Growth Client Centricity The Integrated Bank Efficiency Management Wrap-up Vontobel Bankentag November 19, 2008, Page 26
  27. 27. Our target: Delivering strong results, while investing continuously and significantly in growth Continued growth investments Medium term-targets ! International onshore platforms ! Front-office hiring Pre-tax income margin Strong client focus > 40% ! Client Centricity ! Integrated Bank Net new assets growth Stringent efficiency management > 6% (WM only) ! Product and price management ! Centers of Excellence/ Operational Excellence Vontobel Bankentag November 19, 2008, Page 27
  28. 28. Summary Results have shown resilience despite market dislocation Strong asset gathering and hiring trends across all regions Unique value proposition based on Client Centricity and the Integrated Bank Private Banking offers unique growth prospects within the financial services industry Vontobel Bankentag November 19, 2008, Page 28

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