2. DISCLAIMER
Cautionary statement regarding forward-looking 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, 2004 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.
Slide 1
3. A STRONG START TO 2005
S Solid revenue generation in all segments on the back of improved market
conditions
S Net income of CHF 1.9 bn
< Doubled from 4Q04 and up 3% from 1Q04
S Return on equity of 20.6% for the Group, at the top end of target range
< Banking RoE of 22.9%
< Winterthur RoE of 12.0%
S Net new assets at Private Banking of CHF 7.0 bn with an annualized
growth rate of 5.2%
S Share repurchase approved at shareholders’ meeting - program to start
as early as May 9
Slide 2
4. RESULTS OVERVIEW
∆ vs ∆ vs
1Q05 4Q04 1Q04
in CHF m, except where indicated
Net revenues 17,062 31% 1%
Total benefits, claims and credit losses 8,069 52% 2%
Total operating expenses 6,146 0% (3%)
Net income 1,910 99% 3%
Return on equity – Group 20.6%
Return on equity – Banking 22.9%
Return on equity – Winterthur 12.0%
Basic earnings per share (in CHF) 1.64 100% 5%
Diluted earnings per share (in CHF) 1.63 104% 6%
Slide 3
5. ONE BANK INTEGRATION
TIMETABLE & STATUS UPDATE
Item Status / Target Date
S Completed
S Project set-up and definition of model
S Legal entity merger S Merged entity operational
as of May 16, 2005
S Bank integration S Ongoing
< 26 integration workstreams
(front office and support)
< 100 project team members
S Integrated businesses operational and S January 1, 2006
new reporting structure in place
Slide 4
6. PRIVATE BANKING
CLIENT ACTIVITY RECOVERS COMPARED TO
SECOND HALF OF 2004
Net income in CHF m
685
681 665
616
511
+11%
+1%
1Q05
1Q04 2Q04 3Q04 4Q04
Slide 5
7. PRIVATE BANKING
CONTINUED COST CONTAINMENT
Revenues in CHF m Total operating expenses in CHF m
1,940 Cost/income ratio in %
1,912
1,869
1,644 1,717 55.3 57.9 60.5 57.8 55.4
+11%
1,083 1,060
1,073 994 993
600
582 564 503 446
-1% 460
491 519 491 547
1Q05 2Q04 3Q04 4Q04 1Q05
1Q04 2Q04 3Q04 4Q04 1Q04
Compensation and benefits
Other expenses
(incl. restructuring charges)
Slide 6
8. PRIVATE BANKING
RECOVERY OF TRANSACTION-DRIVEN MARGIN
Gross margin in bp Key drivers versus 4Q04
146 138
139
7 128
6
10 122
5
4 S Higher brokerage
49 S Higher product sales
57 39
48 37
82 84 S Stable asset-driven revenues
81 83
81
1Q05
1Q04 2Q04 3Q04 4Q04
Asset-driven Transaction-driven Other
Slide 7
9. PRIVATE BANKING
HEALTHY ASSET INFLOWS IN EUROPE AND ASIA
Net new assets in CHF bn Assets under management in CHF bn
Annua-
5.2 5.2
lized
in %
564
10.8
544
541 539
537
7.9
7.0
+5%
3.9
3.8
1Q05 1Q05
1Q04 2Q04 3Q04 4Q04 1Q04 2Q04 3Q04 4Q04
Slide 8
10. CORPORATE & RETAIL BANKING
RECORD NET INCOME
Net income in CHF m
274
257
256
199
189
+7%
+45%
1Q05
1Q04 2Q04 3Q04 4Q04
Slide 9
11. CORPORATE & RETAIL BANKING
SOUND REVENUES
Revenues in CHF m Total operating expenses in CHF m
950 Cost/income ratio in %
860
62.8 58.2 65.2 59.4 61.5
803
808
787
553 529
527
494
+7% 477
308
275 300 266 206
+9% 221
219 253 261 271
1Q05
1Q04 2Q04 3Q04 4Q04 1Q05
1Q04 2Q04 3Q04 4Q04
Compensation and benefits
Other expenses
Slide 10
12. INSTITUTIONAL SECURITIES
SOLID RESULT COMPARED TO RECORD 1Q04
Net income in CHF m
623
540
292 1)
269
+101%
129 1)
-13%
1Q05
1Q04 2Q04 3Q04 4Q04
1) Including the release of tax contingency accruals of CHF 27 m and CHF 126 m in 2Q04 and 3Q04, respectively
Slide 11
13. INSTITUTIONAL SECURITIES
STRONG FIXED INCOME TRADING REVENUES
Fixed income trading revenues in CHF m Equity trading revenues in CHF m
1,105
926
1,926
1,869 843 828
696
1,348
1,278
1,012
+12%
+51%
-16%
+3%
1Q05
1Q04 2Q04 3Q04 4Q04 1Q05
1Q04 2Q04 3Q04 4Q04
Slide 12
14. INSTITUTIONAL SECURITIES
MIXED INVESTMENT BANKING RESULTS
Investment banking revenues in CHF m
∆ vs
1Q04
902 -13%
868
840
718 -25%
627 Total
-15% -9%
Advisory and
other fees
Debt
+1% -23%
underwriting
Equity
-31% -43%
underwriting
1Q05
1Q04 2Q04 3Q04 4Q04
Slide 13
15. INSTITUTIONAL SECURITIES
IMPROVEMENT OF PRE-TAX MARGIN
Pre-tax margin 1) in %
Total operating expenses in CHF bn
Other expenses
Compensation and benefits
22.2
19.9
3.1 3.0
2.9 2.8
2.6
13.7
+11%
7.7
4.6
-8%
1Q05 1Q05
1Q04 2Q04 3Q04 4Q04 1Q04 2Q04 3Q04 4Q04
1) Excluding minority interest results relating to the FIN 46R consolidation
Slide 14
16. WEALTH & ASSET MANAGEMENT
STABLE PERFORMANCE DUE TO LOWER
REVENUES AND OPERATING EXPENSES
Net income in CHF m
301
135
136
63
+114%
30
-1%
1Q05
1Q04 2Q04 3Q04 4Q04
Slide 15
17. WEALTH & ASSET MANAGEMENT
MIXED PERFORMANCE ACROSS BUSINESS AREAS;
DECREASE IN INVESTMENT-RELATED GAINS
Net revenues by division 1) in CHF m
Total 1) ∆ vs
772
798 1,037 635 772
1Q04
380 Investment-related -17%
126 gains & Other
105
20
62
66
-3% -11%
Private Client Services
72 64
69
213
57
117 106 -38% 132 +13%
Alternative Capital
113
Credit Suisse
483 482 0%
473 -2%
471
Asset Management
403
1Q05
1Q04 2Q04 3Q04 4Q04
1) Excluding minority interest revenues relating to the FIN 46R consolidation
Slide 16
18. WEALTH & ASSET MANAGEMENT
GOOD NET NEW ASSET INFLOWS
Net new assets 1) in CHF bn Assets under management 1) in CHF bn
2.7
0.6 495
(0.2)
(0.5) 482
489 488
5.4 502
1Q05 1Q05
1Q04 2Q04 3Q04 4Q04 1Q04 2Q04 3Q04 4Q04
Credit Suisse Asset Alternative Capital Private Client
Management Services
1) Includes assets managed on behalf of other entities within Credit Suisse Group
Slide 17
19. LIFE & PENSIONS
IMPROVED UNDERLYING RESULTS AND LOWER
INVESTMENT INCOME
Net income in CHF m
164 1)
152
139
126
-17%
67
-9%
1Q05
1Q04 2Q04 3Q04 4Q04
1) Including an increase in the amount of CHF 72 m in the valuation of deferred tax assets in relation to tax loss carry-forwards created
in prior years
Slide 18
20. LIFE & PENSIONS
GROWTH IN MAIN EUROPEAN MARKETS
Underwriting, acquisition and
Total business volume in CHF m
administration expenses in CHF m
Expense ratio in %
+7% 6.3
6.6
6,463
6,067
+1%
Policyholder
+5%
deposits
401 404
Under-
writing and 145
164
Gross acquisition
+7%
premiums
Admini-
written 259
237
stration
1Q05
1Q04
1Q05
1Q04
Slide 19
21. LIFE & PENSIONS
LOWER REALIZED GAINS
Net investment return 1) Realized gains / (losses) 1)
5.6%
5.3%
1.8% 1.5%
785
810
3.8%
3.8%
(407)
(363)
1Q05
1Q04
1Q05
1Q04
Realized gains / (losses) Realized gains
Net current investment return Realized losses
1) Backing traditional life policies
Slide 20
22. NON-LIFE
STRONG NET INCOME ON IMPROVED
UNDERWRITING RESULTS
Net income in CHF m
198 1)
125
103
82
+21%
(177) 2)
1Q05
1Q04 2Q04 3Q04 4Q04
1) Including an increase in the amount of CHF 59 m in the valuation of deferred tax assets in relation to tax loss carry-forwards created
in prior years
2) Including a charge of CHF 242 m after tax related to the increase in the provision for contingencies relating to the sale of Winterthur
International
Slide 21
23. NON-LIFE
IMPROVED COMBINED RATIO IN
MOST MARKET UNITS
Net premiums earned Expenses in CHF m
Combined ratio in %
in CHF m
-1ppt
2,788 -0.5%
2,703
100.4 99.4
655 652
Expense 23.5 24.1
ratio Under-
362
writing and 374
-3%
acquisition
Claims
76.9 75.3
ratio Admini- 293 278
stration
1Q05
1Q05 1Q04
1Q04 1Q05
1Q04
Slide 22
24. NON-LIFE
STABLE NET INVESTMENT INCOME
Net investment return Realized gains / (losses)
5.1% 5.0%
1.6% 1.5%
144 156
3.5%
3.5%
(42)
(70)
1Q05
1Q04
1Q05
1Q04
Realized gains
Realized gains / (losses)
Realized losses
Net current investment return
Slide 23
25. CAPITAL POSITION
Credit Suisse Group Winterthur
S
BIS tier 1 ratio in % Shareholders’ equity of
12.1 CHF 8.5 bn as of March 31, 2005;
11.5 11.6 11.8 12.3
improvement of CHF 0.3 bn
compared to December 31, 2004
Risk-weighted assets in CHF bn
215
203 204
202 199
S EU solvency ratio improved to
192% as of December 31, 2004,
compared to 168% as of
December 31, 2003
1Q04 2Q04 3Q04 4Q04 1Q05
Slide 24
26. PERFORMANCE GOALS OVERVIEW
Medium-
1Q05
term goals
all goals on full-year basis
≥ 130 bp
Private Banking Gross margin 138 bp
Credit Suisse
Cost/income ratio 55 % < 55 %
Net new asset growth (annualized) 5.2 % >5%
Corporate & Revenue growth (annualized) 3% >5%
Retail Banking Cost/income ratio 62 % < 60 %
Return on allocated capital 22 % > 15 %
Pre-tax margin 1)
Division 20.5 % > 20 %
Credit Suisse
First Boston Return on allocated capital 23.0 % > 20 %
A1 / A- / A+ 2)
Division IFS rating Single A
Winterthur
Return on equity 12.0 % > 12 %
Non-Life Combined ratio 99.4 % < 98 %
Life & Pensions Expense ratio 6.3 % <8%
Consolidated Return on equity 20.6 % 15 % to 20 %
Credit Suisse
Group Tier 1 target 12.1 % > 10 %
1) Excluding minority interest results relating to the FIN 46R consolidation
2) For Moody’s, Standard & Poor’s and Fitch Ratings
Slide 25
27. SUMMARY AND OUTLOOK
S Strong start to 2005
< Solid revenue generation supported by improved market conditions
S Market conditions in the second quarter likely to result in more subdued
client activity and decrease in business volume
< Recovery of market conditions expected for the second half of 2005
S Concentrate on diligently responding to these trends
< Ensure the necessary measures are in place to respond rapidly to
changing client requirements
< Capture growth opportunities
Slide 26
