The document provides Credit Suisse's second quarter 2008 results. It discusses solid profits despite difficult market conditions. All three divisions - Private Banking, Investment Banking, and Asset Management - were profitable in the quarter. Private Banking saw strong asset inflows while Investment Banking had immaterial writedowns. Credit Suisse maintained a strong capital position with a Basel II Tier 1 ratio of 10.2%. The document also provides updates on Credit Suisse's exposures and risk management across various business sectors.
Highlights of the fourth quarter of 2010. Net sales amounted to SEK 27,556m (28,215) and income for the period was SEK 677m (664), or SEK 2.38 (2.34) per share. Net sales increased by 1.6% in comparable currencies.
Highlights of the fourth quarter of 2010. Net sales amounted to SEK 27,556m (28,215) and income for the period was SEK 677m (664), or SEK 2.38 (2.34) per share. Net sales increased by 1.6% in comparable currencies.
The SGS Group posted a strong first semester performance with revenue growth of 15.1% over prior year to CHF 2.7 billion (constant currency basis), reflecting both organic revenue growth of 11.1% and the integration of twenty four recently acquired companies contributing an additional 4.0% in revenues.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
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
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how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
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.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
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 second quarter report 2008.
Slide 2
3. Introduction
Brady W. Dougan, Chief Executive Officer
Second quarter 2008 results
Renato Fassbind, Chief Financial Officer
Risk management update
Wilson Ervin, Chief Risk Officer
Summary
Brady W. Dougan, Chief Executive Officer
Slide 3
4. Key messages
Solid results with net income of CHF 1.2 bn; all three divisions profitable
Private Banking performed well with strong asset inflows of CHF 17.4 bn
Solid operating performance in Investment Banking with
immaterial writedowns
Continued significant reduction in risk exposures
Strong BIS tier 1 ratio of 10.2%
Slide 4
5. Introduction
Brady W. Dougan, Chief Executive Officer
Second quarter 2008 results
Renato Fassbind, Chief Financial Officer
Risk management update
Wilson Ervin, Chief Risk Officer
Summary
Brady W. Dougan, Chief Executive Officer
Slide 5
6. All divisions profitable
Private Banking Investment Banking Asset Management
Pre-tax income in CHF m
2Q07 1Q08 2Q08
2,502
1,381 1,324 1,220
299
281 167
(468)
(3,460)
! Good results evidencing the ! 2Q08 operating earnings ! Stable fee-based gross
of CHF 650 m 1)
strength of business margin
! Strong asset gathering and ! Most areas with good results ! Strong inflows in alternative
hiring trends across all investments
! Immaterial net valuation
regions ! Reduced 'liftout' assets
reductions of CHF 22 m
! Continue to implement ! Significant progress in
international growth strategy reducing risk exposure
1) Excluding a fair value adjustment on own debt of CHF (503) m and a net litigation credit of CHF 134 m
Slide 6
7. Results overview – solid profitability
2Q08 1Q08 2Q07
CHF bn, except where indicated
Net revenues 7.8 3.0 11.7
Provisions for credit losses 0.0 0.2 0.0
Total operating expenses 6.2 5.4 7.6
Pre-tax income 1.6 (2.6) 4.1
Net income 1.2 (2.1) 3.2
Diluted earnings per share (in CHF) 1.12 (2.10) 2.82
Return on equity (in %) 13.2% (20.8)% 29.7%
Basel II Tier 1 ratio (in %) 10.2 % 9.8% 13.0%1)
Note: Based on Core Results, i.e. excluding results from minority interests without significant interest
1) Under Basel I and as such not comparable
Slide 7
9. Strong net new asset growth in Wealth Management
Net new assets (NNA)
CHF bn
28.9
15.4
15.2
13.5
13.3 7.8 EMEA
8.2%
12.0
annualized 2Q08
5.7
NNA growth
9.7
6.6 Asia Pacific
rate
4.1
5.9% Americas
5.7
rolling 4 qtr
2.1 NNA growth
rate 8.8 Switzerland
3.5
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 6M08
Slide 9
10. Wealth Management with continued investments in
international growth platform
Relationship managers (RMs)
at period-end
! 450 new RMs in last 12 months
120 new 4,100
RMs in 2Q08 ! Entered 4 new local markets and opened 14
new offices globally (since 2007)
3,370
3,140
! Approximately 40% of current net new assets
from hires made over last three years
2,540
! Investments into international growth of above
+330 p.a.
CHF 350 m annually
goal
+230 in
6M08
! Continued efficiency measures elsewhere, but
+200 p.a.
dilution of profitability ratios in downturn
markets should be expected as we maintain
long-term focus
2004 2007 6M08 Goal 2010
Slide 10
11. Fixed income trading with reduced writedowns, but market
conditions remain difficult
Investment Banking fixed income trading net revenues
CHF m
6,054 ! Increased revenues in RMBS, Europe high
grade and life finance
! 2Q08 revenues benefit from substantial
3,282 reductions in writedowns
! Reported revenues of CHF 320 m include
writedowns of CHF 391 m 1) and a fair
320 value reduction on own debt of CHF 453 m
(1,256)
(1,576)
6M07 6M08 2Q07 1Q08 2Q08
1) Does not include offsetting gains of CHF 369 m reported in debt underwriting and other revenues
Slide 11
12. Equity trading with strong performance in most businesses
Investment Banking equity trading net revenues
CHF m
! Prime services generated near-record revenues
with growing client balances and new mandates
4,646
! Near-record revenues in equity derivatives,
driven by strength in all regions and products
3,634
! Strong result in the global cash business, driven
2,475 by increased client flows and growth in AES
2,255
! Proprietary trading gains in 2Q08 were lower
(22)%
than in 2Q07 but an improvement from the loss
1,379
+64% in 1Q08
(9)% ! 2Q08 fair value reduction on own debt
of CHF 50 m
6M07 6M08 2Q07 1Q08 2Q08
AES = Advanced Execution Services, our electronic trading platform
Slide 12
13. Underwriting fees still adversely affected by market conditions
Advisory and other fees Underwriting fees
CHF m CHF m
Debt underwriting
1,143
Equity underwriting
1,438
760
632
713
396 364
352
216
724 136
413
417 245
172
6M07 6M08 2Q07 1Q08 2Q08 6M07 6M08 2Q07 1Q08 2Q08
Slide 13
14. Disciplined cost management in Investment Banking
Compensation expenses in CHF m
! Increased compensation from 1Q08 reflecting
7,272
improved results
4,180 3,882 ! Hires in prime services and equity derivatives
(43)% 2,462
1,718 partly offset headcount reductions in fixed
income and banking
6M07 6M08 2Q07 1Q08 2Q08
Other operating expenses in CHF m
! Other operating expenses1) decreased CHF
108 m, or 5%, from 6M07, CHF 16 m from
2,286
2,044
1Q08 and CHF 64 m from 2Q07
! This reflects higher average headcount
(11)% 1,145 1,097
compared to 6M07, offset by cost reduction
947
efforts, a stronger Swiss franc and, in 2Q08,
lower commission spend
6M07 6M08 2Q07 1Q08 2Q08 1) Excluding net litigation credit of CHF 134 m in 2Q08
Slide 14
15. Asset Management with good inflows in higher margin
businesses
Assets under management Net new assets Gross margin by asset class
Before gains/losses from money market funds and
CHF bn CHF bn in 2Q08
private equity in 2Q08
Asset
40
Management 1)
605 (3.8)
Division
Alternative
64
168
investment 7.5
strategies (AI)
Multi-asset
36
164
class solutions (2.0)
(MACS)
Global 26
(9.3)1)
273
investors (GI)
1) Including CHF 10.0 bn outflows from institutional pension advisory business
Slide 15
16. Improved gross margin from last year
Asset management and administrative fees 1)
CHF m
37 40 36 40 40 Gross margin on AuM in bp1)
1,312 ! MACS and GI with decline in fees due to lower
1,258
assets under management
AI
! AI with higher performance fees, offset in part
664 648 610
by higher funding costs
MACS
! Gross margin on AuM maintained at 40 bp
GI
6M07 6M08 2Q07 1Q08 2Q08
Private equity and other investment-related gains
CHF m
! Gains from energy-related companies
317
189 50
(19)
31
1) before private equity and other
6M07 6M08 2Q07 1Q08 2Q08 investment-related gains and securities
purchased from our money market funds
Slide 16
17. Maintained strong Basel II capital position
Tier 1 capital and tier 1 capital ratio (CHF bn and %)
! Strong tier 1 capital ratio at 10.2%
10.2%
10.0%
Tier 1 9.8%
capital ratio
! High quality composition, with 85% from
core capital
32.2 30.8
29.4
Hybrid tier 1
! Maintained capital strength without raising
capital
dilutive equity capital
! Includes accrual for significant dividend
Core tier 1
capital
! Strong capital base and conservative
funding as competitive advantage
4Q07 1Q08 2Q08
Risk-weighted assets in CHF bn
324 301 302
Slide 17
19. Investment Banking: Overview of key sectors
Net (writedowns)/
Exposures writebacks
Business area (in CHF bn) 2Q08 1Q08 Change 2Q08 1Q08
Origination-
Leveraged finance 14.3 20.8 (0.1) (1.7)
(31%)
based
(exposures Commercial mortgages 15.0 19.3 (0.5) (0.8)
(22%)
shown gross)
Trading- Residential mortgage 1) 5.4 5.5 +0.0 (0.1)
(2%)
based
of which US subprime 0.8 1.1 (27%)
(exposures
CDO Trading 2) 1.1 1.9 (2.7)
(42%) +0.5
shown net)
Total (0.0) (5.3)
Index hedges 3) (6.6) (20.9)
1) All non-agency business, including higher quality Residential Mortgage segments (Alt-A and prime); global total
2) Positions relate to US subprime; long positions are CHF 5.2 bn and short positions of CHF 4.1bn; total net subprime exposure in IB is CHF 1.9 bn in residential mortgages and CDO trading. See CDO
supplemental page for details on exposure methodology refinement
3) Index hedges held in the above focus areas that reference non-investment grade, crossover credit and mortgage indices only; excludes other indices (e.g. investment grade) and single name hedges;
trading hedges embedded in US subprime residential mortgages & CDO trading are included in the net exposures shown above and not included in the total for Index hedges
Slide 19
20. Leveraged finance
Total exposure
CHF bn
! All positions are fair valued (no “accrual”
book); weighted price below 80% of par
59.2
! Portfolio has become more concentrated as
sales effort has progressed
(76)%
! High proportion (76%) of exposure is
35.1 senior secured lending; no exposure to
auto, home building or retail industries
! Term financing used only in a small
20.8
proportion of sales (total of CHF 2.8 bn)
14.3
! Added CHF 1.1 bn of new exposures in
2Q08; remain active in pursuing and
3Q07 4Q07 1Q08 2Q08
executing quality business
Slide 20
21. Commercial mortgage (CMBS)
Total exposure 1)
! All positions carried at fair value
CHF bn
! Portfolio breakdown similar to 1Q08 with
35.9 average loan-to-value (LTV) of 70%
! Majority of portfolio is secured by high quality,
income-producing real estate; office properties
(58)%
25.9
as largest segment
! Development loans are less than 5% of our
19.3
portfolio with an average LTV of 54%
15.0
! Continental Europe 50% of the portfolio;
exposures primarily in Northern Europe,
particularly Germany
3Q07 4Q07 1Q08 2Q08
1) Includes both loans in the warehouse as well as securities still in syndication
Slide 21
22. CDO trading
! Net gain in 2Q08 mainly reflects
Exposure 1) (CHF bn) Long Short Net
i) ongoing trading (i.e. excludes run-off book)
1Q08 9.3 (7.4) 1.9
performed well despite volatile markets
2Q08 5.2 (4.1) 1.1
ii) run-off portfolio benefited from some
normalization of 1Q08 basis risk stress levels,
2Q08 1Q08
(CHF bn)
as well as good hedging execution
Net (writedowns)/writebacks 0.5 (2.7)
! Solid progress in reducing overall sizing and
of which runoff 0.2 (2.9)
reducing “basis risks” between longs and shorts
CDO Trading: subprime sensitivities (CHF m) ! Sample sensitivities to possible adverse market
developments shown at lower left (details of
Potential scenario Estimated loss
vintage and rating are shown in supplement)
20% drop in ABS subprime (0.2)
! Going forward, both active and run-off CDO
10% wider cash/CDS basis (0.3)
portfolios will be managed and reported in
2006 vintage outperforms by 10% (0.1)
RMBS area
AAA underperforms by 10% (0.1)
1) Positions related to US subprime, and includes refinement to methodology (see supplement)
Slide 22
23. Asset Management: money market 'liftout' portfolio
Securities transferred to bank balance sheet
! No new liftouts during 2Q08; money market
Gross exposure (CHF bn) 2Q08 1Q08
funds operated normally during the period
Structured Inv. Vehicles (SIVs) 1.1 1.5
! Portfolio reduced by 32% in 2Q08 largely
Asset Backed Securities (ABS) 0.2 0.5
due to sales and maturities
Corporates 0.2 0.2
Total 1.5 2.2
! Small net writebacks in 2Q08, mainly from
of which subprime-related 0.2 0.2
hedging gains; small writedowns on 'liftout'
portfolio
Roll-forward of exposure (CHF bn)
! Positions now carried at a weighted
Exposure 1Q08 2.2
average value of approx. 60% to par
Sales, maturities, writedowns and FX (0.7)
! We continue to focus on reducing positions
Exposure 2Q08 1.5
while maximizing value
2Q08 1Q08
(CHF bn)
Net (writedowns)/writebacks 0.1 (0.6)
Slide 23
24. Other industry focus areas
! We do not rely on monolines in our subprime hedging
! Our inventory in monoline-wrapped paper is more than offset
Monolines
by CDS and other forms of protection
! Exposure to subordinated debt and preferred classes is limited
US Agencies
! Credit Suisse does not sponsor any SIVs
SIVs
! Credit Suisse has not been an active underwriter in auction rate
Auction Rate
Securities securities
Slide 24
25. Summary
! Good reduction in risk exposure continued in 2Q08
! Risk now re-sized to a level appropriate for current market conditions
! Net investment banking writedowns immaterial in 2Q08 as we benefited from
consistent reduction strategy and mark-to-market disciplines
! Asset Management 'liftout' portfolio reduced by 32% in 2Q08 with a small net
writeback
! Expect market conditions to remain volatile; Credit Suisse portfolio is well
positioned for such an environment
Slide 25
26. Introduction
Brady W. Dougan, Chief Executive Officer
Second quarter 2008 results
Renato Fassbind, Chief Financial Officer
Risk management update
Wilson Ervin, Chief Risk Officer
Summary
Brady W. Dougan, Chief Executive Officer
Slide 26
29. Leveraged finance exposures
! Total exposure down 31% to CHF 14.3 bn
Gross exposure 1) (CHF bn) 2Q08 1Q08
during 2Q08, driven primarily by continued
Unfunded commitments 11.0 13.0
sales activity offset somewhat by new
Funded positions 3.0 7.5
originations
Equity bridges 0.3 0.3
Total gross exposure 2) 14.3 20.8
Roll-forward (CHF bn) Unfunded Funded
Exposures 1Q08 13.0 7.5
New exposures 1.1 –
Fundings (1.3) 1.3
Sales, terminations,
writedowns & FX (1.8) (5.8)
Exposures 2Q08 11.0 3.0
2Q08 1Q08
(CHF m)
1) Non-investment grade exposures, at fair value
Net writedowns (0.1) (1.7) 2) Figures exclude term financing to support certain sales transactions. This increased to CHF 2.8 bn in 2Q08
from CHF 2.2 bn in 1Q08
Slide 29
30. Leveraged finance portfolio analysis
Total exposure by geography
! US bias reflects market leadership with
US financial sponsors / LBO deals
90%
Asia
! The largest 5 commitments now
1%
represent 80% of the portfolio; increase
Europe in concentration is a natural result of
9% shrinking total exposure
Exposure by industry sector
Other 19% Specialty
chemicals
Home Furnishings 4% 50%
Publishing
& Printing 5%
Gaming & Hotel 6%
Broadcast
services 16%
Slide 30
31. Commercial mortgage (CMBS) exposures
! Gross exposure reduced by 22% to
2Q08 1Q08
(CHF bn)
CHF 15.0 bn during 2Q08
Warehouse exposure 1) 15.0 19.3
! Positions carried at fair value, taking into
Roll-forward of exposure (CHF bn) consideration prices for cash trading and
relevant indices (e.g. CMBX), as well as
Exposure 1Q08 19.3
specific asset fundamentals
New loan originations 0.4
Sales, terminations,
! Some new loan originations, largely outside
writedowns and FX (4.7)
Europe and US
Exposure 2Q08 15.0
2Q08 1Q08
(CHF bn)
(0.5) (0.8)
Net writedowns
1) Includes both loans in the warehouse as well as securities still in syndication
Slide 31
32. Commercial mortgage (CMBS) portfolio analysis
Total exposure by geography Weighted average loan-to-value (LTV) ratio
%
US 74 71 70
29% 61
Asia Other
18% Continental
Europe 23%
UK Germany
3% 27%
US Europe Asia Total
Exposure by loan type
! Portfolio is well-diversified with solid LTV
Other 7%
Industrial 1%
origination ratios
Healthcare 8%
! Exposure to continental Europe is now 50%
of the portfolio, with the largest contribution
Multifamily 10% Office 40%
from Germany
Hotel 15%
Retail 19%
Slide 32
33. Residential mortgage (RMBS) exposure and portfolio analysis
! Small net valuation gain in 2Q08; good
Net exposure 1) 2Q08 1Q08
(CHF bn)
positioning in face of volatile markets
US subprime 0.8 1.1
! Exposures are fair valued based on market
US Alt-A 1.1 1.1
levels
US prime 0.7 0.8
! Overall exposures unchanged versus 1Q08
Europe/Asia 2.8 2.5
and relatively modest in overall scale
Total net exposure 5.4 5.5
! Gross positions are fairly similar to net
2Q08 1Q08 positions
(CHF bn)
(i.e. short positions are less than CHF 1 bn)
Net (writedowns)/writebacks 0.0 (0.1)
1) All non-agency business, including higher quality segments
Slide 33
34. CDO trading: Vintage / rating analysis & methodology detail
! Some exposure to basis risks if values shift among
vintage / rating buckets, but buckets are relatively
Net exposures by vintage and rating 1)
well-balanced
Vintage
(CHF bn)
! Methodology changes include two elements:
Pre 2006 2006 2007
A) ‘Former methodology’ derived from spread
AAA 0.4 (0.3) 0.9
sensitivity and duration data while the ‘new
AA 0.3 (0.3) – methodology’ uses a price-based method, which
is more appropriate when spreads become
A 0.2 – (0.1)
extremely wide
BBB and below 0.3 (0.2) –
B) In the ‘new methodology’, we net down gross
longs and shorts where a short is identical to a
matching long position while the “former
Exposure 1) Long Short Net
(CHF bn)
methodology” showed this gross if such
1Q08 (former methodology) 12.7 (12.0) 0.7 positions were with different counterparties; this
change should give a better view of market
1Q08 (new methodology) 9.3 (7.4) 1.9
sensitivity to basis risk between longs and shorts
2Q08 (new methodology) 5.2 (4.1) 1.1
! Methodology changes impact risk exposure reporting
but do not affect valuation, which is done based on
market movements
1) Positions related to US subprime
Slide 34
35. Risk measures – recent trends
ERC trend (position risk)
CHF bn
! ERC is a broad measure of Credit Suisse
13.6
12.4 exposure, covering credit, market and investment
12.2 11.5 11.1 11.0
risks
! ERC is down 19% vs. peak in 3Q07
! Reduction is largely driven by reduced exposures
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 in leverage finance and CMBS
VaR trend (Investment Banking trading only)
CHF bn
! Reported figures have grown over recent quarters,
193
Dataset / 194
176
methodology changes largely due to volatile data from recent market
Positioning conditions and methodology changes
110
95 ! Adjusted for these factors, trading risk declined
78
since 1Q08
! VaR not used for crisis planning because of
inherent sensitivity to market conditions
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08
Slide 35
36. Additional information
Valuation gains/(reductions) on structured products businesses and leveraged loan
commitments are included in Investment Banking net revenues as follows:
2Q08 1Q08 6M08 2007
Net revenues (22) (5,281) (5,304) (3,187)
of which
Fixed income trading (391) (4,523) (4,915) (2,283) Net value gains/(reductions) from
structured products and leveraged
finance
Debt underwriting 61 (49) 12 (349) Net value gains/(reductions) from
structured products and fee revenues/
(losses) from leveraged finance
Other revenues 308 (709) (401) (555) Net value gains/(reductions) from
leveraged finance
Slide 36