- Credit Suisse Group posted net profit of CHF 2.4 billion in the first half of 1998, exceeding the previous year's figure by 36%.
- All business units improved substantially on their results from the previous year, with revenue increasing 22% to CHF 12.6 billion.
- Return on equity was 18.4%, with the banking business achieving 23.3% and the insurance business achieving 9.5%.
Tendances digitales et créatives // Cannes Lions 2015Valtech
Le Festival International de la Créativité, ou Cannes Lions, se tenait cette année du 21 au 27 juin. Découvrez la sélection et le décryptage de Valtech pour y voir plus clair sur les tendances digitales.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
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Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
2. Share performance
CHF
Credit Suisse Group
Swiss Market Index (adjusted)
350
300
250
200
150
100
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A
1996 1997 1998
Change
Share data 30 June 1998 31 Dec. 1997 in %
Number of shares issued 267,142,861 266,128,097 0.4
Shares ranking for dividend 267,064,503 265,750,460 0.5
Market capitalisation (CHF m) 90,134 60,060 50
Share price (CHF) 337.50 226 49
high January–June 1998 341
low January–June 1998 216
Change
1st half 1998 1st half 1997 in %
Earnings per share (CHF) 9.02 6.79 33
Average shares ranking for dividend 266,340,880 n.a.
Financial Calendar
Media conference for 1998 results Tuesday, 16 March 1999
1999 Annual General Meeting Friday, 28 May 1999
Contents
Commentary on the consolidated half-year results 3
Consolidated income statement 6
Consolidated balance sheet 7
Consolidated off-balance sheet business, selected notes to the consolidated financial statements 8
Credit Suisse 10
Credit Suisse Private Banking 12
Credit Suisse First Boston 13
Credit Suisse Asset Management 16
Winterthur 17
Closing 20
3. DEAR SHAREHOLDERS
Credit Suisse Group posted net profit of CHF 2.4 bn in the first half of 1998,
exceeding the previous year’s corresponding figure by 36%. Return on equity
amounted to 18.4%. All business units – Credit Suisse, Credit Suisse Private
Banking, Credit Suisse First Boston, Credit Suisse Asset Management and
Winterthur – improved substantially on their previous year’s results. Credit
Suisse, which serves individual and corporate customers in Switzerland,
returned to profit.
The 22% increase in total revenue to CHF 12.6 bn
Strong operating performance:
compared with the previous year was a result of 12% growth in interest business, 34%
growth in commission and service fee income and a 34% rise in trading income.
Operating expenses including depreciation were 21% higher at CHF 8.5 bn. The
cost/income ratio declined from 67.5% to 67.1%.
Valuation adjustments, provisions and losses declined by a total of 10% to
CHF 912 m. This includes CHF 526 m for credit provisions and CHF 386 m for other
business risks. CHF 311 m of the credit provisions is accounted for by Credit Suisse,
CHF 68 m by Credit Suisse Private Banking and CHF 147 m by Credit Suisse First
Boston. Included in the CHF 526 m figure above are additional credit provisions
to the amount of CHF 82 m at Credit Suisse First Boston and CHF 58 m at Credit
Suisse Private Banking, which were taken in excess of the statistically expected annual
credit provision (ACP) for their Asian port-
folios. These provisions were covered by a
KEY FIGURES
release from the reserves for general banking
1st half 1997
1st half 1998 Change
risks to extraordinary income. in CHF m in CHF m in %
Furthermore, a release from the reserves Revenue 12,605 10,336 22
for general banking risks of CHF 375 m is Gross operating profit 4,437 3,688 20
included under extraordinary items to cover Net profit 2,401 1,767 36
a significant portion of the settlement of Cash flow 3,577 2,878 24
US class action lawsuits in connection with
ROE
the activities of the Swiss banks in the
– Group 18.4% 15.4%
Second World War.
– banking 23.3% 17.2%
– insurance 9.5% 10.8%
After taking
Very good return on equity:
30 June 1998 31 Dec. 1997 Change
into account extraordinary items, taxes of in CHF m in CHF m in %
CHF 860 m and minority interests, net profit Total assets 748,192 689,568 9
amounted to CHF 2.4 bn, an increase of Total shareholders’ equity 29,359 25,651 14
36% compared with the previous year. – of which minority interests 2,447 2,005 22
Consolidated return on equity (ROE)
Total risk weighted positions (BIS) 216,418 208,382 4
amounted to 18.4% in the first half of 1998,
BIS tier 1 capital 24,903 22,759 9
with banking business achieving an ROE
BIS total capital 38,382 35,062 9
of 23.3% and insurance business an ROE of
9.5%. Total assets under management in % in %
increased by 11.2% to CHF 960 bn. BIS tier 1 ratio 11.5 10.9
Earnings per Credit Suisse Group registered BIS total capital ratio 17.7 16.8
share amounted to CHF 9.02. Change
30 June 1998 31 Dec. 1997 in %
Total staff 61,902 60,059 3
– of which in Switzerland: in banking 20,884 21,442 –3
of which in Switzerland: in insurance 7,219 7,108 2
– of which outside Switzerland: in banking 15,603 13,235 18
of which in Switz erland: in insurance 18,196 18,274 0
3
4. All business units show significant improvement in revenue:
REVENUE COMPOSITION
1st half 1998
Credit Suisse had a successful first half of 1998. With revenue increasing by 15% to
CHF 1.6 bn and operating expenses developing as planned, the cost/income ratio
23%
19%
improved from 87.5% to 74.5%. At CHF 311 m, valuation adjustments were for the
first time within the statistically expected amount (ACP) of CHF 325 m. Credit Suisse
returned to profit sooner than expected, posting net profit of CHF 51 m. This compares
with a loss of CHF 150 m in the first half of 1997. At the same time, the business unit
24%
once again launched a number of new, innovative products, notably in direct banking
34%
and mortgages.
Balance sheet business
Commission
Trading
Credit Suisse Private Banking showed a 24% rise in net profit to CHF 829 m in the
Insurance
first half of 1998. The cost/income ratio declined from 48.1% to 47.5%. Assets under
management increased from CHF 381 bn to CHF 428 bn. Strategic measures in the
first half of the year, for example the clear separation of on and offshore business, were
aimed at consolidating Credit Suisse Private Banking’s position as one of the leading
private banking operations in the world.
Credit Suisse First Boston once again put in a very good performance in the first six
months, posting revenue of USD 4.4 bn (+32%) or CHF 6.5 bn (+36%) and a return
on equity of 21%. The 38% rise in personnel expenses was largely due to new recruit-
ment and acquisitions. Net profit before minority interests increased by 21% to USD
754 m, corresponding to CHF 1.1 bn (+25%). The integration of the European
and Asian businesses of BZW has been virtually completed and has already brought
excellent results. Credit Suisse First Boston also expects positive effects to come
from the acquisition of Banco Garantia in Brazil and the hiring of more than 160 techno-
logy professionals.
Credit Suisse Asset Management showed a 13% increase in discretionary assets
under management to CHF 210 bn in the first half. This was a result of market appre-
ciation and foreign exchange movements of 10% and net new business of 3%.
Total assets under management amounted to CHF 295 bn. Revenue rose by 24% to
CHF 440 m, while operating expenses increased, by 14% to CHF 287 m. Net profit
was CHF 121 m. A separate business area was created in the first half of 1998 for
the distribution of mutual funds via third-party channels. The first series of products
will be launched this month in the USA as part of the newly formed alliance with the
US investment management company E.M. Warburg Pincus & Co. LLC.
Winterthur showed a 20% increase in consolidated net profit to CHF 423 m. Gross
premiums rose by 21% to CHF 18 bn (This comparison excludes the results of HIH
Winterthur for both 1997 and 1998). Compared with the end of 1997, shareholders’
equity excluding minority interests rose by 26% to CHF 10 bn, while investments rose
by 14% to CHF 115 bn. In non-life business, gross premiums increased by 4% to
CHF 8.5 bn. In life business, gross premiums were up 40% to CHF 9.6 bn, approxi-
mately 60% of the increase is due to the rise in single premium annuities in Switzerland
before the implementation of stamp duty in April. Important events at Winterthur
included the integration of Winterthur Columna and CS Life to form the new Individual
and Group Life division and the profitable sale of Winterthur’s holding in the Australian
HIH Winterthur for AUD 436 m (approximately CHF 360 m) through a public offering.
Furthermore, in August, Winterthur announced that it had entered into an agreement in
principle to sell its reinsurance business to PartnerRe for CHF 1,125 bn.
4
5. IT projects and restructuring progressing as planned
The IT work in connection with the introduction of the euro and the switch to the year
2000 is proceeding as planned. Of the exceptional items of pre-tax CHF 488 m taken
in the 1997 accounts, CHF 103 m was used in the first half of 1998. Of the excep-
tional items of CHF 430 m taken for the ongoing restructuring of banking operations,
especially in Switzerland, CHF 111 m was used. The reorganisation of Swiss business
was largely completed by the end of 1997; the remaining restructuring work is pro-
gressing quickly and efficiently.
Successful merger with Winterthur
A year after the announcement of the merger with Winterthur, major successes have
already been achieved. In addition to steps previously announced, such as the creation
of the Individual and Group Life division at Winterthur, the co-locating of around 80
Credit Suisse branches and Winterthur agencies by the end of 1998, and the planned
integration of certain back-office operations, 1998 also saw further developments in
products and services and in international operations. The intensified sale of insurance
products via banking channels and the offering of combined product packages are show-
ing good results. As part of the “Personal Financial Services” strategy, new forms of
distributing banking and insurance products are under study in various European markets.
OVERVIEW OF BUSINESS
UNIT RESULTS Credit Credit Credit Adjustments
Suisse Suisse Suisse including Credit
1st half 1998 Credit Private First Asset Winterthur Winterthur Corporate Suisse
in CHF m Suisse Banking Boston Management Non-life Life Centre Group
1,4282) 7692)
1,560 2,145 6,513 440 –250 12,605
REVENUE
Personnel expenses 733 644 3,367 167 653 267 197 6,028
Other operating expenses 412 358 1,128 120 364 167 –409 2,140
1,145 1,002 4,495 287 1,017 434 –212 8,168
TOTAL OPERATING EXPENSES
415 1,143 2,018 153 411 335 –38 4,437
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 17 17 138 5 0 0 110 287
Valuation adjustments, provisions and losses1) 333 67 256 0 0 0 256 912
65 1,059 1,624 148 411 335 –404 3,238
PROFIT BEFORE EXTRAORDINARY ITEMS/TAXES
Extraordinary income1) 24 35 9 0 0 474 542
3)
Extraordinary expenses 22 27 4 0 14 354 421
Taxes 16 230 521 27 272 –206 860
51 837 1,108 121 460 –78 2,499
NET PROFIT BEFORE MINORITY INTERESTS
– of which minority interests 0 8 57 0 37 –4 98
51 829 1,051 121 423 –74 2,401
NET PROFIT (after minority interests)
Average allocated equity capital 4,183 2,433 10,567 157 8,945
Return on average equity capital 2.4% n.a. 21% n.a. 9.5% 18.4%
Equity capital allocation as of 1 July 1998 4,100 2,800 11,000 190 9,965
1)
net of release/allocation of reserves for general banking risks –14 58 82 126
2)
defined as premiums earned (net), less claims incurred and actuarial provisions, less commissions (net), plus investment income from insurance business
3)
non-attributable interest expense
5
6. CONSOLIDATED INCOME STATEMENT
1 January 1998 to 30 June 1998
1)
1st half 1998 1st half 1997 Change Change
in CHF m in CHF m in CHF m in %
Interest and discount income 10,398 9,302 1,096 12
Interest and dividend income from trading portfolios 2,973 3,438 –465 –14
Interest and dividend income from financial investments from banking activities 198 194 4 2
Interest expenses from banking activities 10,711 10,383 328 3
2,858 2,551 307 12
NET INTEREST INCOME
Commission income from lending activities 209 175 34 19
Commission from securities and investment transactions 3,977 2,961 1,016 34
Commission from other services 174 167 7 4
Commission expenses 195 205 –10 –5
4,165 3,098 1,067 34
NET COMMISSION AND SERVICE FEE INCOME
2,954 2,200 754 34
NET TRADING INCOME
Premiums earned, net 15,463 13,272 2,191 17
Claims incurred and actuarial provisions 15,943 12,886 3,057 24
Commissions, net 1,256 1,284 –28 –2
Investment income from insurance business 4,121 3,407 714 21
2,385 2,509 –124 –5
NET INCOME FROM INSURANCE BUSINESS
Income from the sale of financial investments 201 49 152 310
Income from investment activities 87 62 25 40
– of which from participations valued according to the equity method 71 45 26 58
– of which from other non-consolidated participations 16 17 –1 –6
Real estate income 10 21 –11 –52
Sundry ordinary income 263 173 90 52
Sundry ordinary expenses 318 327 –9 –3
243 –22 265 –
OTHER ORDINARY INCOME
12,605 10,336 2,269 22
NET OPERATING INCOME
Personnel expenses 6,028 4,839 1,189 25
Other operating expenses 2,140 1,809 331 18
8,168 6,648 1,520 23
TOTAL OPERATING EXPENSES
4,437 3,688 749 20
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 287 328 –41 –13
Valuation adjustments, provisions and losses from banking business 912 1,016 –104 –10
1,199 1,344 –145 -11
TOTAL DEPRECIATION, VALUATION ADJUSTMENTS, LOSSES
3,238 2,344 894 38
GROUP PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES
2)
Extraordinary income 542 372 170 46
Extraordinary expenses 2) 421 49 372 759
Taxes 860 810 50 6
2,499 1,857 642 35
GROUP PROFIT
– of which minority interests 98 90 8 9
2,401 1,767 634 36
NET PROFIT (after minority interests)
6
7. CONSOLIDATED BALANCE SHEET
At 30 June 1998
30 June 1998 31 Dec. 1997 Change Change
in CHF m in CHF m in CHF m in %
ASSETS
Cash and other liquid assets 2,827 3,404 –577 –17
Money market claims 26,987 24,013 2,974 12
Due from banks 179,988 145,778 34,210 23
Claims from the insurance business 6,842 6,424 418 7
Due from customers 135,213 144,491 –9,278 –6
Mortgages 80,052 78,904 1,148 1
Securities and precious metals trading portfolios 121,978 103,826 18,152 17
Financial investments from the banking business 15,439 16,017 –578 –4
Investments from the insurance business 105,893 93,387 12,506 13
Non-consolidated participations 1,396 1,192 204 17
Tangible fixed assets 6,395 6,271 124 2
Intangible assets 171 181 –10 –6
Accrued income and prepaid expenses 10,992 9,419 1,573 17
Other assets 54,019 56,261 –2,242 –4
748,192 689,568 58,624 9
TOTAL ASSETS
Total subordinated claims 3,473 2,566 907 35
Total due from non-consolidated participations 170 78 92 118
30 June 1998 31 Dec. 1997 Change Change
in CHF m in CHF m in CHF m in %
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liability in respect of money market paper 15,469 12,520 2,949 24
Due to banks 208,589 180,236 28,353 16
Commitments from the insurance business 8,844 6,045 2,799 46
Due to customers in savings and investment accounts 46,854 48,533 –1,679 –3
Due to customers, other 207,609 195,571 12,038 6
Medium-term bank notes (cash bonds) 6,533 7,216 –683 –9
Bonds and mortgage-backed bonds 49,449 45,594 3,855 8
Accrued expenses and deferred income 14,450 11,677 2,773 24
Other liabilities 56,491 58,168 –1,677 –3
Valuation adjustments and provisions 7,185 7,129 56 1
Technical provisions for the insurance business 97,360 91,228 6,132 7
Reserves for general banking risks 2,468 2,890 –422 –15
Share capital 5,343 5,322 21 0
Capital reserve 9,628 9,366 262 3
Revaluation reserves from the insurance business 7,047 5,337 1,710 32
Retained earnings 25 334 –309 –93
Minority interests in shareholders’ equity 2,349 1,801 548 30
Group profit 2,499 601 1,898 316
– of which minority interests 98 204 –106 –52
Total shareholders’ equity 29,359 25,651 3,708 14
748,192 689,568 58,624 9
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
Total subordinated liabilities 14,828 16,636 –1,808 –11
Total liabilities due to non-consolidated participations 138 598 –460 –77
1)
Previous year’s figures: The consolidated interim statement shows the combined results of Credit Suisse Group and Winterthur (pooling-of-interests method).
2)
Consideration of the results of the settlement agreement in the interim report as of 30 June 1998: In the present interim report, a liability in the amount of 60% (CHF 375 m) of Credit Suisse
Group’s maximum share of the settlement amount was recognised in the balance sheet line “Other liabilities”. The expense is compensated by a corresponding release of reserves for general
banking risks. Both the expense and the income are recognised as extraordinary items.
7
8. CONSOLIDATED OFF-BALANCE SHEET BUSINESS
At 30 June 1998
30 June 1998 31 Dec. 1997 Change Change
in CHF m in CHF m in CHF m in %
CONTINGENT LIABILITIES
Credit guarantees in form of avals, guarantees
and indemnity liabilities 8,550 9,852 –1,302 –13
Bid bonds, delivery and performance bonds,
letters of indemnity, other performance-related guarantees 5,152 4,965 187 4
Irrevocable commitments in respect
of documentary credits 3,400 3,112 288 9
Other contingent liabilities 3,938 3,943 –5 0
21,040 21,872 –832 –4
TOTAL CONTINGENT LIABILITIES
81,459 64,490 16,969 26
IRREVOCABLE COMMITMENTS
LIABILITIES FOR CALLS ON SHARES
63 63 0 0
AND OTHER EQUITY
216 473 –257 –54
CONFIRMED CREDITS
36,360 32,581 3,779 12
FIDUCIARY TRANSACTIONS
30 June 1998 30 June 1998 30 June 1998 31 Dec. 1997 31 Dec. 1997 31 Dec. 1997
Positive Negative Positive Negative
gross gross gross 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 4,363.5 54.2 51.4 2,983.0 44.9 43.3
Foreign exchange products 1,778.2 36.7 36.5 1,415.2 33.7 33.7
Precious metals products 40.7 1.6 1.9 36.7 2.1 2.7
Equity/index-related products 378.9 17.5 18.3 288.3 10.2 10.2
Other products 27.1 0.1 0.1 13.2 0.1 0.0
6,588.4 110.1 108.2 4,736.4 91.0 89.9
TOTAL
SELECTED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1st half 1998 1st half 1997
USD TRANSLATION RATES
Income statement 1.47 1.42
Balance sheet 1.52 1.45
Mortgage Other Without
ANALYSIS OF LOAN COLLATERAL Total
collateral collateral collateral
AT 30 JUNE 1998 in CHF m
in CHF m in CHF m in CHF m
Due from clients 135,213
7,086 85,426 42,701
Mortgages 80,052
80,052
Residential properties 54,095
Business and office properties 9,608
Commercial and industrial properties 10,073
Other properties 6,276
215,265
87,138 85,426 42,701
TOTAL
At 31 December 1997 223,395
86,854 92,370 44,171
8
9. SELECTED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SPLIT OF INCOME STATEMENT INTO BANKING Banking business Insurance business Total
1st half 1998 1st half 1998 1st half 1998
1st half 1997 1st half 1997 1st half 1997
AND INSURANCE BUSINESS
Net interest income 2,858 0 2,858
2,551 0 2,551
Net commission and service income 4,165 0 4,165
3,098 0 3,098
Net trading income 2,954 0 2,954
2,200 0 2,200
Net income from insurance business 0 2,385 2,385
0 2,509 2,509
Other ordinary income 420 –177 243
210 –232 –22
10,397 2,208 12,605
8,059 2,277 10,336
NET OPERATING INCOME
Personnel expenses 5,108 920 6,028
3,787 1,052 4,839
Other operating expenses 1,584 556 2,140
1,259 550 1,809
6,692 1,476 8,168
5,046
Total operating expenses 1,602 6,648
3,705 732 4,437
3,013 675 3,688
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 287 0 287
328 0 328
Valuation adjustments, provisions and losses 912 0 912
1,016 0 1,016
1,199 0 1,199
1,344 0 1,344
Total depreciation, valuation adjustments, losses
GROUP PROFIT BEFORE EXTRAORDINARY
2,506 732 3,238
1,669 675 2,344
ITEMS AND TAXES
Extraordinary income 542 0 542
372 0 372
Extraordinary expenses 421 0 421
49 0 49
Taxes 588 272 860
523 287 810
2,039 460 2,499
1,469 388 1,857
GROUP PROFIT
– of which minority interests 61 37 98
58 32 90
1,978 423 2,401
1,411 356 1,767
NET PROFIT (AFTER MINORITY INTERESTS)
30 June 1998 31 Dec. 1997 Change Change
SECURITIES AND PRECIOUS METALS TRADING PORTFOLIOS in CHF m in CHF m in CHF m in %
Interest-bearing securities and rights 82,605 72,597 10,008 14
– listed on stock exchange 47,568 41,009 6,559 16
– unlisted 35,037 31,588 3,449 11
– of which bonds and medium-term notes 1,025 1,185 –160 –14
Equities 37,522 29,624 7,898 27
– of which own shares 3,163 1,951 1,212 62
Precious metals 1,851 1,605 246 15
121,978 103,826 18,152 17
TOTAL SECURITIES AND PRECIOUS METALS TRADING PORTFOLIOS
– of which securities rediscountable or pledgeable at central banks 37,887 29,508 8,379 28
The interim statement as at 30 June 1998 conforms to the listing rules of the Swiss Exchange, rule number 12.
9
10. CORPORATE AND INDIVIDUAL CUSTOMERS IN SWITZERLAND
The first six months of 1998 were very successful for Credit Suisse.
Revenue was up CHF 200 m or 15% on the previous year at CHF 1,560 m.
Staff costs and other operating expenses developed as planned. The
cost/income ratio improved a further 13 percentage points to 74%. With
net profit of CHF 51 m, Credit Suisse returned to profit.
Credit Suisse is making consistent progress towards meeting its medium-term profit-
ability targets. Restructuring measures have progressed well. The integration of Bank
Leu’s corporate and individual customer business as of 1 January 1998 was implement-
ed smoothly. The concentration of logistics operations into four locations (Berne, Zurich,
Geneva, Mendrisio) is proceeding as planned. Credit Suisse’s current focus is on initia-
tives aimed at promoting profitable expansion, such as the launch of a new and inno-
vative mortgage product, the MIX mortgage. This mortgage ties interest rates to develop-
ments in the money and capital markets, enabling customers to benefit from falling inter-
est rates, whilst simultaneously safeguarding against the risk of interest rate increases.
Initial results show that the MIX mortgage has been very well received by the market.
The joint venture with American Express is a central element in the growth strategy for
the credit card business. Credit Suisse will be the first Swiss bank to offer all three major
credit cards – American Express, Visa and Eurocard.
Credit Suisse continues to implement the bancassurance strategy in the individual
client segment. In particular, sales of CS Life products (primarily single premium annuity
policies) and safekeeping accounts for vested pension benefits performed very well in the
first half. With the sale of 8,400 new policies, representing total premium income of
CHF 730 m, Credit Suisse generated 62% of all new CS Life policies and 48% of
premium income in the first half. The number of Credit Suisse Mixta BVG and Mixta BVG
Defensiv safekeeping accounts for vested pension benefits rose 78% against the corre-
sponding figure for the end of 1997, while total funds held in these accounts increased
by 89%.
Corporate banking earnings developed
INCOME STATEMENT
st
st
1 half 1998 1 half 1997 Change
well for both on and off-balancesheet busi-
in CHF m in CHF m in %
ness. The new risk-adjusted pricing structure
Net interest income 1,031 928 11
introduced last year was systematically applied
Net commission and service fee income 400 300 33
to new lending business as well as to many
Net trading income 111 88 26
existing loans. More effort has been expended,
Other ordinary income 18 41 –56
making the credit evaluation procedure trans-
1,560 1,357 15
REVENUE parent for clients.
The use of direct banking distribution
Personnel expenses 733 797 –8
channels (telephone and internet) continued to
Other operating expenses 412 323 28
increase. Since the launch of internet banking
1,145 1,120 2
TOTAL OPERATING EXPENSES
in April 1997, approximately 35,000 DIRECT
415 237 75
GROSS OPERATING PROFIT
NET accounts have been opened, 19,000
Deprecation and write-offs on non-current assets 17 68 –75 of them in the first six months of 1998. Over
Valuation adjustments, provisions and losses* 333 346 –4 1 million log-ins resulted in around 3.8 million
transactions, 2.3 million of which were in
PROFIT BEFORE EXTRAORDINARY ITEMS
65 –177 137
AND TAXES
the first half of 1998. Credit Suisse now
receives more than 15% of all its securities
Extraordinary income* 24 7 243
orders via the internet.
Extraordinary expenses 22 17 29
Taxes 16 –38 142
51 –149 134
NET PROFIT
– of which minority interests 0 1 –100
51 –150 134
NET PROFIT (after minority interests)
* net of allocation to RGBR (reserves for general banking risks) –14 338
10
11. With effect from 1 January 1998, Bank Leu’s modestly
Results first half 1998:
unprofitable corporate and individual banking business was integrated into Credit Suisse,
bringing in CHF 4.9 bn in loans, CHF 2 bn in customer deposits and CHF 1.2 bn in
assets in safekeeping. Restatements were not undertaken for either the balance sheet
or income statement.
Total assets, at CHF 90.8 bn, decreased 6% from the 31 December 1997 balance,
largely due to the planned reduction in interbank and money market activities. Loans to
customers increased approximately 5% to CHF 81.6 bn. Customer deposits fell by 0.4%
to CHF 60 bn as customer funds were switched to investment funds and CS Life policies
in line with the business plan. Assets under management rose 8% to CHF 120 bn.
The 15% increase in revenue can be attributed to slightly improved interest mar-
gins, a positive development in the recovery of past due interest, sales of single
premium annuity policies prior to the introduction of stamp duty on new life policies, and
an improved fee sharing arrangement with other business units in the areas of foreign
exchange and mutual fund sales. Costs developed as planned. As a result of these
developments gross operating profit rose 75% to CHF 415 m. The cost/income ratio
also improved substantially, falling from 87.5% to 74.5%.
Valuation adjustments, provisions and losses of CHF 333 m include CHF 325 m
in respect of the statistically calculated credit
risk costs and CHF 8 m in respect of other
BALANCE SHEET
provisions. Actual valuation adjustments for
the first half of 1998 were below the 30 June 1998 31 Dec. 1997 Change
in CHF m in CHF m in %
statistically projected level: CHF 136 m were
Cash and other liquid assets 953 993 –4
incurred for previously identified non-perform-
Money market claims 657 7,116 –91
ing loans.
Due from banks 64 309 –79
These positive developments led to
Credit Suisse returning to profit (CHF 51 m), Due from other business units 2,288 3,139 –27
compared with a loss of CHF 150 m for Due from customers 23,569 22,855 3
the first half of 1997. On the basis of expect- Mortgages 57,991 54,631 6
ed interest rate developments and a cautious Securities and precious metals trading
assessment of the financial markets, we portfolio 57 100 –43
forecast a slight slowdown in revenue growth Financial investments 1,981 2,364 –16
in the second half of the year. Participations 51 51 0
Tangible fixed assets 2,244 2,377 –6
Accrued income and prepaid expenses 188 476 –61
RATIOS/KEY PERFORMANCE INDICATORS
Other assets 783 1,986 –61
1st half 1998 1997
90,826 96,397 –6
TOTAL ASSETS
Average allocated equity capital 4,183 3,870
Money market liabilities 0 0 0
Allocated equity capital
Due to banks 594 586 1
CHF m (1 July 1998) 4,100
Due to other business units 11,885 16,971 –30
Cost/income ratio 74.5% 87.5%
Due to customers in savings and
Return on average equity capital 2.4% –7.7%
investment accounts 37,338 37,149 1
Number of employees at 30.6./31.12. 12,418 12,540
Due to customers, other 22,674 23,117 –2
Pre-tax margin 4.3% –13.8%
Medium-term notes 6,530 6,708 –3
Staff expenses/operating expenses 64% 71%
Bonds and mortgage-backed bonds 5,507 5,595 –2
Staff expenses/total income 47% 59%
Accrued expenses and deferred income 788 820 –4
Number of branches 30.6./31.12. 247 244
Other liabilities 770 1,046 –26
Net interest margin 2.20% 1.96%
Valuation adjustments and provisions 343 354 –3
Loan growth 30.6./31.12. 5.71% –0.18%
Capital 4,397 4,051 9
Deposit/loan ratio 30.6./31.12. 86.5% 94%
– of which minority interests 12 10 20
Assets under management
90,826 96,397 –6
CHF bn 30.6./31.12. TOTAL LIABILITIES
120 111
11
12. SERVICES FOR PRIVATE INVESTORS IN SWITZERLAND AND INTERNATIONALLY
Credit Suisse Private Banking implemented a series of targeted strategic
measures in the first half of 1998 to secure and expand its position as
one of the world’s leading private banking operations. Net profit grew 24%
and assets under management increased 12.5%.
In order to ensure increased market focus, a clear distinction was drawn between
onshore and offshore business. The new management structure, which is aligned
with customer segmentation, allows for a more responsive approach to clients’
requirements.
Private banking operations in the USA and Canada were sold. The North American
units were not of sufficient size to achieve adequate levels of profitability. Additionally,
CS Life was merged into the Winterthur Group.
The independent private banks were regrouped in order to improve their growth
potential and market presence. In simultaneous mergers, Affida Bank was integrated
into Bank Leu and Bank Heusser into Clariden Bank. Bank Leu’s retail operations were
transferred to Credit Suisse at the beginning of the year.
Results first half 1998: Compared with the first half of 1997, net profit
increased 24% from CHF 670 m to CHF 829 m. Assets under management grew by
12.5% from CHF 380.6 bn at 1 January 1998 to CHF 428 bn at 30 June 1998.
10.5% of the increase was due to market performance and 2% to net new business.
Both total revenue and operating expenses rose by 21%. The cost/income ratio
improved from 48.1% at the end of 1997 to 47.5%. The rise in operating expenses is
due in large part to higher staff costs resulting from the expansion of investment advi-
sory services both in Switzerland and abroad. Personnel costs rose due to the transfer
of information technology personnel from Credit Suisse and Credit Suisse First Boston.
However, this shift in personnel was offset by a decrease in other operating expenses,
reflecting the costs charged to other business units for IT services. A review of the Asia
loan portfolio led to an increase in valuation adjustments of CHF 58 m, which was offset
by use of Credit Suisse Group’s reserves for
INCOME STATEMENT
general banking risks.
st
st
1 half 1998 1 half 1997 Change
in CHF m in CHF m in %
BALANCE SHEET INFORMATION
Net interest income 446 373 20
30 June 1998 31 Dec. 1997
Net commission and service fee income 1,350 1,177 15
in CHF m in CHF m
Net trading income 265 179 48
Total assets 85,636 81,349
Other ordinary income 84 40 110
Due from customers 22,688 25,406
2,145 1,769 21
REVENUE
– of which secured by mortgages 6,231 9,815
Personnel expenses 644 440 46 – of which secured by other collateral 15,079 12,187
Other operating expenses 358 390 –8
1,002 830 21
TOTAL OPERATING EXPENSES
RATIOS/KEY PERFORMANCE INDICATORS
1,143 939 22
GROSS OPERATING PROFIT
1st half 1998 1997
Deprecation and write-offs on non-current assets 17 21 –19
Average allocated equity capital 2,433 1,900
Valuation adjustments, provisions and losses* 67 42 60
Allocated equity capital
PROFIT BEFORE EXTRAORDINARY ITEMS
CHF m (1 July 1998) 2,800
1,059 876 21
AND TAXES
Cost/income ratio 47.5% 48.1%
Extraordinary income* 35 8 338
Number of employees 30.6./31.12. 8,333 8,464
Extraordinary expenses 27 31 –13
Pre-tax margin 49.7% 48.2%
Taxes 230 178 29
Fee income/total income 62.9% 66.5%
837 675 24
NET PROFIT
Fee income/operating expenses 135% 142%
– of which minority interests 8 5 60
Assets under management
829 CHF bn 30.6./31.12.
670 24 428
NET PROFIT (after minority interests) 381
58 0
* net of release of RGBR (reserves for general banking risks)
12
13. GLOBAL INVESTMENT BANKING
Credit Suisse First Boston produced an excellent first half performance
against favourable market conditions. Revenues and profitability rose
to record levels – USD 4.4 bn (CHF 6.5 bn) in revenues and a 21% return
on equity, respectively. CSFB’s competitive position among the world’s
leading global investment banks continues to advance. Substantial
investment in new people and acquisitions have been initiated to
improve future prospects.
The market backdrop to first half activity remained good overall although there were
areas of significant difficulty, especially in the emerging markets.
Credit Suisse First Boston continued its strategic expansion. During the first half,
headcount, excluding acquisitions, increased by 985 people. Additionally, since
30 June, over 160 people have joined CSFB to expand the technology investment
banking and equity research areas.
The acquisition of businesses from BZW in Europe and Asia was largely com-
pleted, with excellent early results from the 819 people retained. In Australasia, leading
local brokerage firms, First Pacific and First NZ Capital were acquired. This was
followed by completion of the acquisition of Banco Garantia in Brazil for USD 675 m
on 31 July.
Results first half 1998: Revenue growth in the first half was outstanding at
32% in dollar terms (36% in CHF terms), with less than 7% stemming from acquisi-
tions. The fastest growth comes from those divisions targeted for investment in 1997,
Equities and Investment Banking. Net profit before minority interests set a record at
USD 754 m, up 21% (CHF 1,108 m, up 25%). Overall staffing levels rose 24% over
the last 12 months, most of it reflecting active future investment rather than immediately
productive resources. Nevertheless, CSFB’s expense ratios still remain in line with
INCOME STATEMENT
1st half 1997 1st half 1997
1st half 1998 1st half 1998
Change Change
in CHF m in USD m
in CHF m in % in USD m in %
Fixed income 2,896 1,970
2,184 33 1,538 28
Equity 1,210 823
841 44 592 39
Credit Suisse Financial Products 1,080 735
899 20 633 16
Corporate and Investment Banking 1,331 905
964 38 679 33
Private equity and other –4 –3
–108 – –76 –
6,513 4,430
4,780 36 3,366 32
REVENUE
Personnel expenses 3,367 2,290
2,354 43 1,658 38
Other operating expenses 1,128 767
838 35 590 30
4,495 3,057
3,192 41 2,248 36
TOTAL OPERATING EXPENSES
2,018 1,373
1,588 27 1,118 23
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 138 94
101 37 71 32
Valuation adjustments, provisions and losses* 256 174
179 43 126 38
PROFIT BEFORE
1,624 1,105
1,308 24 921 20
EXTRAORDINARY ITEMS AND TAXES
Extraordinary income* 9 6
16 –44 11 –45
Extraordinary expenses 4 3
21 –81 15 –80
Taxes 521 354
418 25 294 20
1,108 754
885 25 623 21
NET PROFIT
– of which minority interests 57 39
52 10 37 5
1,051 715
833 26 586 22
NET PROFIT (after minority interests)
82 56
0 0
* net of release of RGBR (reserves for general banking risks)
13
14. the comparable activities of other leading investment banks (pre-tax profit margin 25%,
compensation/revenues ratio 52%). In geographic terms, the first half saw revenues
split 46% Americas, 44% Europe and 10% Asia Pacific, highlighting CSFB’s unique
global balance.
At 21%, Credit Suisse First Boston’s return on equity is within the “good markets”
target range of 20 –25%. This reflects excellent organic growth as well as the benefits
of active resource reallocation. Equity capital supporting the corporate loan book has
been reduced by 50% to USD 1.5 bn from
the level 18 months ago, with a further reduc-
BALANCE SHEET tion to below USD 1 bn planned. Increasing
30 June 1998 31 Dec. 1997 Change
firm-wide profitability has also been achieved
in CHF m in CHF m in %
whilst retaining strong capital ratios, with a
Cash 1,616 2,021 –20
BIS tier 1 ratio of 8.4% (total capital ratio of
Money market paper 20,872 16,119 29
15.3%).
Due from banks 172,186 138,351 24
The individual divisions performed as
– of which securities lending and
follows (percentages reflect reported dollar
reverse repurchase agreements 115,300 103,288 12
figures):
Due from other business units 7,116 5,933 20
Due from customers 95,378 103,993 –8
Revenues increased 28%,
Fixed Income:
– of which securities lending and
with ROE approximating 30% on a signifi-
reverse repurchase agreements 57,368 62,030 –8
cantly increased capital base. Growth came
Mortgages 8,025 7,157 12
particularly from the Corporates sector
Securities and precious metals
(especially high yield), Real Estate Securitisa-
trading portfolio 119,555 102,385 17
tion, Foreign Exchange and a recovery in
Financial investments 8,500 9,590 –11
government bond trading. Despite turbulence
Participations 360 262 37
in Asia and Eastern Europe, the Emerging
Tangible fixed assets 1,972 1,837 7
Markets Group (up to 30 June) maintained
Accrued income and prepaid expenses 7,447 5,817 28
the comparable period’s level of revenues as
Other assets 51,142 53,443 –4
did Money Markets. Investment in “customer
– of which replacement value of derivatives 47,550 50,934 –7
business” showed positive early results with
494,169 446,908 11
TOTAL ASSETS CSFB’s capital markets underwriting activities
gaining share and rising 88% in volume terms
Money market liabilities 18,501 17,719 4
over the comparable period last year.
Due to banks 216,585 183,043 18
– of which securities borrowing and
repurchase agreements 103,869 84,817 22
Due to other business units 46,225 39,677 17
Due to customers, in savings
RATIOS/KEY PERFORMANCE INDICATORS
and investment deposits 200 463 –57
Due to customers, other 99,918 1st half
97,374 3 1998 1997
– of which securities borrowing and Average allocated equity capital 10,567 9,500
repurchase agreements 45,944 56,797 –19
Allocated equity capital
Bonds and mortgage-backed bonds 37,730 33,551 12 in CHF m (1July 1998) 11,000
Accrued expenses and deferred income 10,558 8,025 32 BIS tier 1 ratio* 8.4% 8.5%
Other liabilities 50,777 53,875 –6 Cost/income ratio 71.1% 68.9%
– of which replacement value of derivatives 45,744 50,635 –10 Return on average equity capital 21% 18.6%
Valuation adjustments and provisions 2,558 2,706 –5 Number of employees 30.6./31.12. 13,762 11,863
Capital 11,117 10,475 6 Pre-tax margin 25% 27.3%
– of which minority interests 1,420 1,201 18 Staff expenses/total expenses 74.9% 73.7%
494,169 Staff expenses/total income
446,908 11 51.7%
TOTAL LIABILITIES 49.2%
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.
* applies to the bank Credit Suisse First Boston
14
15. Revenues increased 39%, with ROE just under 30% despite aggressive
Equities:
headcount expansion including BZW (up 78% since 1/1/97), most of which will not
reach targeted productivity levels for 2–3 years. Outstanding results were achieved in
convertibles and derivatives and very good increases in customer “cash” business in the
US and Western Europe and in risk arbitrage activities. Contrasting these successes
were poor results from the emerging markets businesses in both customer flows and
proprietary trading. Encouraging gains in rankings and market share in research, sales
and trading were seen across the board, reflecting early results from the investment in
these businesses.
Revenues increased 16%, with ROE
Credit Suisse Financial Products (CSFP):
approximating 30%. These strong results were achieved despite difficult market condi-
tions and lower revenues in the core fixed income/FX product area. OTC equity deriva-
tives were strong, outpaced by record results in credit derivatives and commodities. The
increased integration of CSFP’s activities with other divisions of Credit Suisse First
Boston continued to benefit the firm, with common trading management being extend-
ed to the government bond/interest rate derivatives areas.
Very pleasing progress in CIBD
Corporate and Investment Banking (CIBD):
reflects early success in the investment strategy and the reallocation of capital away
from the loan book. Revenues increased 33% despite lower net interest income from
decreased corporate loan balances. Net interest income now represents less than 8%
of CIBD’s revenue. ROE remains low reflecting the lending transition and the expected
dilutive effect of headcount expansion. The investment in personnel is expected to
improve returns in the future. The key product areas targeted for expansion improved;
equity capital markets revenue was up 100% while leveraged finance and M&A revenue
were up 50% on the same period last year.
Further credit provisions of USD 60 m were made against the Asian loan portfolio
offset by use of Credit Suisse Group’s reserves for general banking risks.
This division continues to successfully build its activities globally, with
Private Equity:
substantial new managed funds in place (over USD 2 bn in total). Given the youth of
the portfolio (held at cost until realised) revenues were not significant. However, gains
of approximately CHF 139 m were recognised across the Credit Suisse Group during
the first half of 1998 from merchant banking investments made in previous periods.
The advantages of Credit Suisse First Boston’s unique transatlantic busi-
Summary:
ness and cultural positioning and its management of entrepreneurial growth are clearly
visible. In terms of market share, the trend is also positive. Inevitably, there will be set-
backs in achieving investment success and in market conditions, which have benefited
the industry in recent times. Nevertheless, CSFB is well positioned to face such
challenges effectively and to capture for shareholders the secular growth opportunities
offered in an attractive and consolidating industry.
15