2. 1 Editorial
2 Financial highlights Q2/2001
4 An overview of Credit Suisse Group
8 Review of business units
8 Credit Suisse Financial Services
16 Credit Suisse Private Banking
18 Credit Suisse Asset Management
20 Credit Suisse First Boston
23 Consolidated results
23 Income statement
24 Balance sheet
25 Off-balance sheet business
25 Selected notes
Information for investors
As already stated in the Annual Review 2000 and the Annual Report 2000/2001, Credit Suisse Group changed its
accounting policies in the year 2000, within the framework of the Swiss Accounting and Reporting Recommendations,
in order to increase the transparency for its insurance business and to align its reporting with a more internationally recog-
nised standard. The Group’s half-year financial statements as of 30 June 2000 have been restated to conform with
the current year’s presentation. The Group’s consolidated financial statements show both the restated (new basis) and the
“previously reported” comparative figures for 30 June 2000. For detailed information, please refer to the Annual Report
2000/2001, Note 2: Changes to accounting policies.
This symbol is used to indicate topics on which further information is available on our website. Go to
www.credit-suisse.com/q2review2001/bookmarks.html to find links to the relevant information. The additional
information indicated is openly accessible and does not form part of the Quarterly Review. Some areas of
Credit Suisse Group’s websites are only available in English.
3. EDITORIAL
Good performance in the challenging first half of 2001
Dear shareholders, clients and efforts will be continued throughout the
fellow employees remainder of 2001 and into 2002.
Going forward, we expect the
Dear readers world’s economic climate and the situa-
tion in the global financial markets
With a net operating profit of CHF 1.6 to be difficult in the third and fourth
billion and a net profit of CHF 1.3 bil- quarters, affecting our core activities
lion in the second quarter of 2001, in the areas of asset gathering and in-
Credit Suisse Group competed suc- vestment banking. At the same time,
Lukas Mühlemann
cessfully with its global peers in a the fundamental soundness of our
Chairman and Chief Executive Officer
demanding market environment. In the global business strategy has been
first half of the year, we reported a net proved even under these conditions
operating profit of CHF 3.3 billion and and the Group’s medium- and longer-
a net profit of CHF 2.7 billion, with all term prospects are good.
business units performing well. We will continue to focus on provid-
Despite market conditions, the ing the best possible service for our
Group posted a 1% increase in rev- clients, growing our business, increas-
enues over the first quarter and record- ing our productivity, and thus further
ed strong development in net new improving our position in the top tier of
assets, which amounted to CHF 41.4 the world’s leading financial institutions.
billion for the first half of 2001. Total
assets under management stood at
CHF 1,452.1 billion at end-June, up
4.3% compared with year-end 2000.
Progress was also achieved in
terms of cost reduction, demonstrated Lukas Mühlemann
by lower personnel expenses as com- Chairman and Chief Executive Officer
pared with the first quarter. These August 2001
www.credit-suisse.com 1
4. CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q2/2001
Change vs.
31 Dec. 2000
Share data 1) 30 June 2001 31 March 2001 31 Dec. 2000 in %
Number of shares issued in millions 1,203.60 1,202.99 1,201.75 0
1,196.00 2)
Shares ranking for dividend in millions 1,202.99 1,201.75 0
Market capitalisation in CHF m 88,295 91,529 92,535 (5)
Book value per share in CHF 35.76 34.56 34.08 5
Change vs.
Q2/2001 Q1/2001 2000 2000
in CHF in CHF in CHF in %
Share price (as of 15 August 2001: CHF 71.25)
at end of reporting period 73.88 76.38 77.00 (4)
high 83.13 87.00 97.13 (14)
low 72.25 69.75 73.25 (1)
Change in %
6 months 6 months 6 months
Q2/2001 Q1/2001 Q2/2000 2001 2000 2001/2000
1,196.05 3) 1,201.90 3) 1,198.96 3)
Average number of shares in millions 1,095.38 1,093.11 10
Earnings per share in CHF 1.08 1.19 1.53 2.27 3.28 (31)
Operating earnings per share in CHF 4) 1.35 1.44 1.57 2.78 3.37 (18)
Earnings per share – diluted, in CHF 1.07 1.18 1.53 2.24 3.27 (31)
Operating earnings per share – diluted, in CHF 4) 1.33 1.42 1.57 2.76 3.36 (18)
1)
All share-related data have been adjusted for the 4-for-1 share split effective as of 15 August 2001.
2)
7.6 m of the shares repurchased were approved for cancellation by the Annual General Meeting on 1 June 2001 and are not ranking for dividend.
3)
Adjusted for average number of shares repurchased.
4)
Excl. amortisation of acquired intangible assets and goodwill.
Share performance Market capitalisation
Swiss Market Index Credit Suisse Group as of end of reporting period (in CHF bn)
100
100
90 90
80
70 80
60
70
50
60
40
50
30
40
20 30
20
10
0
1998
1996 1999 2000 2001
1997 91 92 93 94 95 96 97 98 99 00 Q2/01
Financial calendar
Third quarter results 2001 Tuesday, 20 November 2001
Investor’s Day Friday, 7 December 2001
Fourth quarter/full-year results 2001 Tuesday, 12 March 2002
2
5. 6 months 6 months Change in %
Q2/2001 Q1/2001 Q2/2000 2001 2000 6 months
Consolidated income statement in CHF m in CHF m in CHF m in CHF m in CHF m 2001/2000
Operating income 11,182 11,091 8,748 22,273 17,924 24
Gross operating profit 3,009 3,107 2,965 6,116 6,217 (2)
Net operating profit 1) 1,611 1,726 1,723 3,337 3,684 (9)
Net profit 1,288 1,428 1,675 2,716 3,590 (24)
Cash flow 2,674 2,535 2,525 5,209 5,119 2
6 months 6 months Change in %
Q2/2001 Q1/2001 Q2/2000 2001 2000 6 months
Return on equity (ROE) in % in % in % in % in% 2001/2000
Credit Suisse Group: – Reported ROE 12.4 13.9 20.6 13.1 22.8 (43)
Operating ROE 1)
– 15.2 16.7 21.2 16.0 23.4 (32)
Banking business: – Reported ROE 10.0 13.2 22.5 11.5 25.9 (56)
Operating ROE 1)
– 13.1 16.6 23.1 14.9 26.5 (44)
Insurance business: – Reported ROE 26.0 16.7 15.3 21.0 14.2 48
Operating ROE 1)
– 26.8 17.2 15.6 21.7 14.6 49
– Return on invested capital (ROIC) 29.3 21.6 26.9 25.2 25.4 (1)
30 June 2001 31 Dec. 2000 Change vs.
Consolidated balance sheet in CHF m in CHF m 31 Dec. 2000 in %
Total assets 1,118,206 987,433 13
Shareholders’ equity 45,582 43,522 5
Minority interests in shareholders’ equity 2,536 2,571 (1)
30 June 2001 31 Dec. 2000 Change vs.
BIS data in CHF m in CHF m 31 Dec. 2000 in %
BIS risk-weighted assets 261,550 239,465 9
BIS tier 1 capital 25,970 27,111 (4)
– of which non-cumulative perpetual preferred securities 1,135 1,102 3
BIS total capital 42,108 43,565 (3)
30 June 2001 31 Dec. 2000
BIS ratios in % in %
BIS tier 1 ratio – Credit Suisse 6.7 7.1
Credit Suisse First Boston 2)
– 13.0 13.6
Credit Suisse Group 3)
– 9.9 11.3
BIS total capital ratio – Credit Suisse Group 16.1 18.2
30 June 2001 31 March 2001 31 Dec. 2000 Change vs.
Assets under management/client assets in CHF bn in CHF bn in CHF bn 31 Dec. 2000 in %
Advisory assets under management 751.4 723.9 724.7 4
Discretionary assets under management 700.7 668.4 667.3 5
Total assets under management 1,452.1 1,392.3 1,392.0 4
Client assets 2,178.9 2,077.7 2,065.0 6
Change in %
6 months 6 months
6 months
Q2/2001 Q1/2001 Q2/2000 2001 2000
2001/2000
in CHF bn in CHF bn in CHF bn in CHF bn in CHF bn
Net new assets 33
16.7 24.7 9.7 41.4 31.2
Change vs.
Number of employees 31 Dec. 2000 31 Dec. 2000 in %
30 June 2001 31 March 2001
Switzerland – banking 4
22,357 21,915 21,454
– insurance (5)
6,439 6,503 6,781
Outside Switzerland – banking 0
30,636 30,894 30,666
– insurance 8
23,353 22,836 21,637
Total employees Credit Suisse Group 3
82,785 82,148 80,538
1)
Excl. amortisation of acquired intangible assets and goodwill (Credit Suisse Group: Q2/2001: CHF 323 m; Q1/2001: CHF 298 m; Q2/2000: CHF 48 m), all net of tax.
2)
Ratio is based on a tier 1 capital of CHF 18.9 bn (31 Dec. 2000: CHF 17.6 bn), of which non-cumulative perpetual preferred securities is CHF 1.1 bn
(for both periods).
3)
Ratio is based on a tier 1 capital of CHF 26.0 bn (31 Dec. 2000: CHF 27.1 bn), of which non-cumulative perpetual preferred securities is CHF 1.1 bn
(for both periods).
www.credit-suisse.com 3
6. AN OVERVIEW OF CREDIT SUISSE GROUP
Credit Suisse Group posted a net operating profit of CHF 1.6
billion in the second quarter of 2001, representing a 7%
decrease compared to the second quarter of 2000 and to the
first quarter of 2001. Net operating profit for the first half of
2001 totalled CHF 3.3 billion, down 9% year-on-year. Assets
under management grew by 4.3% to CHF 1,452.1 billion since
year-end 2000, with a very strong net inflow of new assets of
CHF 41.4 billion (3.0%).
Overview of business unit results
Credit Credit Credit Credit Adjustments
Suisse Suisse Suisse Suisse including Credit
6 months 2001 Financial Private Asset First Corporate Suisse
in CHF m Services Banking Management Boston Center Group
Operating income 5,221 3,081 794 13,358 (181) 22,273 11 091
Operating expenses 3,345 1,379 607 11,147 (321) 16,157) 7 984
Gross operating profit 1,876 1,702 187 2,211 140 6,116 3 107
Depreciation and write-offs on non-current assets 1) 301 26 15 439 204 985 483
Valuation adjustments, provisions and losses 2) 166 85 0 390 9 650 238
Profit before extraordinary items, taxes 1) 1,409 1,591 172 1,382 (73) 4,481) 2 386
Extraordinary income/(expenses), net 8 3 (1) (1) 13 22 (22
Taxes (408) (362) (15) (279) 29 (1,035)
Net operating profit before minority interests 1) 1,009 1,232 156 1,102 (31) 3,468) 1 773
Amortisation of acquired intangible assets, ) 298
and goodwill, net of tax 33 8 52 537 (9) 621
Net profit before minority interests 976 1,224 104 565 (22) 2,847) 1 475
Minority interests (77) (11) 0 0 (43) (131)
Net profit 899 1,213 104 565 (65) 2,716) 1 428
3,337) 1 726
Net operating profit 1) 932 1,221 156 1,102 (74)
Value added 3) 558 1,095 92 250 (408) 1,587
10,887 4)
Average allocated capital 3,373 1,265 17,217
17.9% 4)
Return on average allocated capital n/a n/a 6.6%
Return on average allocated capital (operating) 1) 18.5% 4) n/a n/a 12.8%
Increased/(decreased) credit-related valuation adjustments 2) (5) 1 – 0
1)
Excl. amortisation of acquired intangible assets and goodwill.
2)
Increased/decreased valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.
3)
Value Added is a measure of value creation in the period under review. It is derived from Credit Suisse Group’s Value Based Analysis (VBA) and complements the per-
formance metrics which are currently used, but does not replace them. The measure is aimed at enhancing the management’s awareness of value creation. For this
purpose, accounting figures are adjusted by adding back accounting distortions such as selected non-cash charges (e.g. amortisation of goodwill), and cost of equity is
charged to the business unit as well as the consolidated accounts.
4)
For the Winterthur business units within Credit Suisse Financial Services, average invested capital is used for the calculation of return on invested capital (ROIC).
4
7. Assets under management/client assets
30 June 2001 31 March 2001 31 Dec. 2000 Change vs.
in CHF bn in CHF bn in CHF bn 31 Dec. 2000 in %
Credit Suisse Financial Services
278.4 276.4 273.8 1.7 0.9
Assets under management
147.5 145.3 142.6 3.4 1.9
– of which discretionary
293.8 291.7 289.6 1.5 0.7
Client assets
Credit Suisse Private Banking
489.1 463.6 456.4 7.2 1.5–
Assets under management
122.5 110.7 108.7 12.7 1.1
– of which discretionary
526.7 502.2 495.6 6.3 1.0
Client assets
Credit Suisse Asset Management
503.4 485.4 487.2 3.3 (0.
Assets under management
372.4 356.7 360.1 3.4 (0.9
– of which discretionary
503.4 485.4 487.2 3.3 (0.4
Client assets
Credit Suisse First Boston 1)
181.2 166.9 174.6 3.8 (1.3
Assets under management
58.3 55.7 55.9 4.3
– of which discretionary
32.4 32.0 31.9 1.6
– of which Private Equity on behalf of clients
855.0 798.4 792.6 7.9
Client assets
Credit Suisse Group
1,452.1 1,392.3 1,392.0 4.3
Assets under management
700.7 668.4 667.3 5.0
– of which discretionary
2,178.9 2,077.7 2,065.0 5.5
Client assets
6 months 6 months Change in %
Q2/2001 Q1/2001 Q2/2000 2001 2000 6 months
Net new assets in CHF bn in CHF bn in CHF bn in CHF bn in CHF bn 2001/2000
(1.1) 4.6 0.5 3.5 5.7 (39)
Credit Suisse Financial Services
12.1 8.4 5.3 20.5 10.9 88
Credit Suisse Private Banking
Credit Suisse Asset Management 2) 1.2 6.8 4.3 8.0 14.6 (45)
Credit Suisse First Boston 3) 4.5 4.9 (0.4) 9.4 0.0 –
16.7 24.7 9.7 41.4 31.2 33
Credit Suisse Group
1)
Certain restatements have been made to prior period amounts to conform to the current presentation.
2)
Net new discretionary assets.
3)
Measured as the balance from accounts opened minus accounts closed.
Credit Suisse Group performed well in Taking into account the 4-for-1 4.3% since year-end 2000 (4.3%
the second quarter of 2001, despite share split effective 15 August 2001, since the end of the first quarter of
a demanding market environment operating earnings per share for the 2001). In the first half of 2001, Credit
which contrasted sharply with the posi- second quarter of 2001 were CHF Suisse Private Banking contributed
tive market developments in 2000. 1.35, compared to CHF 1.57 for the CHF 20.5 billion (CHF 12.1 billion in
Net operating profit – which excludes second quarter of 2000 and CHF 1.44 the second quarter of 2001), Credit
the amortisation of acquired intangible for the first quarter of 2001. Operating Suisse Asset Management CHF 8.0
assets and goodwill – was CHF 1.6 earnings per share for the first half of billion (CHF 1.2 billion), Credit Suisse
billion, representing a decrease of 7% 2001 decreased to CHF 2.78 from Financial Services CHF 3.5 billion
over the second quarter of 2000 and CHF 3.37 in the first half of 2000. (CHF –1.1 billion) and Credit Suisse
over the first quarter of 2001. Credit Net new assets developed very First Boston CHF 9.4 billion (CHF 4.5
Suisse Group’s consolidated second strongly in the first half of 2001, con- billion) to the Group’s net new assets.
quarter results include a CHF 100 mil- tributing CHF 41.4 billion or 3.0% of Operating income amounted to
lion reserve for potential writedowns in assets under management (CHF 16.7 CHF 11.2 billion for the second
the private equity portfolio. billion or 1.2% in the second quarter). quarter of 2001, representing a 1%
Net operating profit for the first half The Group’s total assets under man- increase quarter-on-quarter. Operating
of 2001 amounted to CHF 3.3 billion, agement stood at CHF 1,452.1 billion expenses were up 2% over the first
down 9% over the first half of 2000. as of 30 June 2001, an increase of quarter of 2001, to CHF 8.2 billion,
www.credit-suisse.com 5
8. AN OVERVIEW OF CREDIT SUISSE GROUP
whereas personnel expenses were miums earned at Winterthur
Operating income composition
down 1%. Operating income for Insurance grew 15% and net op-
Q2/2001
the first half of 2001 totalled CHF erating profit was up 7% year-on-
14%
17%
22.3 billion, up 24% compared to the year; the sale of its business for
same period of last year, while operat- large multinational companies was
ing expenses amounted to CHF 16.2 completed in July 2001.
billion, up 38% year-on-year. When Winterthur Life & Pensions
28%
comparing the first-half results of 2001 recorded 10% premium growth in
41%
with those of the same period of the the first half of 2001 and an in-
previous year, it should be noted that crease in net operating profit of
Donaldson, Lufkin & Jenrette (DLJ) is 43%, to CHF 413 million. Net op-
Balance sheet business
included in Credit Suisse Group’s re- erating profit at Credit Suisse
Commission and service fees
sults as of November 2000. Banking, at CHF 365 million for
Trading
Reported net profit for the second the first half, was slightly weaker
Insurance
quarter of 2001 was CHF 1.3 billion, than in 2000; lower asset gather-
down 23% compared to the second ing income was partially offset by
quarter of 2000 and down 10% com- lower credit provisions. The
pared to the previous quarter. For the Personal Finance initiative in
first half of 2001, reported net profit Europe is well on track: operations
was CHF 2.7 billion, down 24% year- in Germany and Spain were started
Operating income contribution by
on-year. Reported net profit includes in the second quarter of 2001,
business unit Q2/2001
the amortisation of acquired intangible with the actual launch of its offer-
assets and goodwill, which amounted to ings scheduled for the third quar-
24%
CHF 323 million net of tax (CHF 0.27 ter. Continued investments resulted
per share) for the second quarter of in an operating loss of CHF 196
59% 2001, compared to CHF 48 million million in the first half.
13% (CHF 0.04 per share) for the same pe-
riod of the previous year and CHF 298 • Credit Suisse Private Banking con-
4%
million (CHF 0.25 per share) for the tinued to perform very well, with
previous quarter. For the first half of first-half net operating profit down
CSFS
2001, these items stood at CHF 621 12% over a very strong first half of
CSPB
million net of tax (CHF 0.52 per share), 2000, to CHF 1.2 billion. These
CSAM
versus CHF 94 million (CHF 0.09 per results reflect continued strong
CSFB
share) in the same period of last year. sales of new products, partially
Credit Suisse Group’s annualised offsetting the weak transaction
operating return on equity was 15.2% volume. The inflow of net new
for the second quarter of 2001, com- assets in the second quarter 2001
pared to 21.2% for the same period exceeded the already strong result
of the previous year and 16.7% for of the previous quarter, totalling
Net operating profit contribution by the previous quarter. Annualised CHF 20.5 billion, or 4.5% growth
business unit Q2/2001
operating return on equity for the first for the first half of 2001.
half of 2001 was 16.0%, compared
31%
28%
to 23.4% in the same period of last • Credit Suisse Asset Management’s
year. first-half revenues were up 10%
Credit Suisse Group expects the over 2000 to CHF 827 million.
5%
third and fourth quarters to be difficult, Net new asset growth slowed in
with the capital markets environment the second quarter as a result of
affecting both the asset gathering and the unfavourable market condi-
36%
the investment banking businesses. tions. Assets under management
rose 3.3% in the first six months of
CSFS
2001, to CHF 503.4 billion.
Business unit highlights
CSPB
CSAM
• Credit Suisse Financial Services • Credit Suisse First Boston posted
CSFB
achieved a strong result, particularly good results in difficult market con-
in the insurance business. Net pre- ditions for the first half of 2001,
6
9. holding or gaining market share in the following members: Lukas ing line on the stock exchange from
most of its segments. Net operat- Mühlemann (Chairman and Chief 14 March to 14 August 2001. The
ing profit for the first six months Executive Officer), Hans-Ulrich Doerig total purchase price for these shares
was down 14% over a very strong (Vice-Chairman of the Group was CHF 1.1 billion and the average
first half of 2000, to CHF 1.1 bil- Executive Board and Chief Risk price per share – prior to the share
lion. Quarter-on-quarter results Officer), John J. Mack (Vice-Chairman split on 15 August – was CHF 295.70
were in line with the industry, with of the Group Executive Board and (CHF 73.92 after the split). Out of the
revenues down 7% in US dollar Chief Executive Officer of Credit total shares repurchased, 1,900,000
terms and operating expenses Suisse First Boston), Thomas Wellauer were cancelled on 10 August, as
down 6% in US dollar terms. The (Chief Executive Officer of Credit previously approved by the Annual
private equity business recorded Suisse Financial Services) and Philip General Meeting.
a pre-tax loss of CHF 216.8 mil- K. Ryan (Chief Financial Officer).
lion. The book value of the private Following the reorganisation, Credit
equity portfolio stood at CHF 4.4 Suisse Group will report its results in a
billion as of 30 June 2001. Credit format consistent with that used previ-
Suisse Group has taken an addi- ously. Within Credit Suisse First
tional reserve of CHF 100 million Boston, investment banking and asset
for further potential writedowns. management activities will be shown
separately. Credit Suisse Financial
• All business units continued to fo- Services plans to show segmented re-
cus on expense control in this diffi- sults for retail and corporate banking
cult market environment, with pro- in Switzerland, worldwide private bank-
grammes underway to reduce ing, personal financial services for
expenses over the balance of this affluent clients in Europe, the life and
year and into 2002. Headcount at pensions business as well as for
Credit Suisse First Boston has de- non-life insurance.
creased by 524 or 2% since the The integration of Credit Suisse
end of March 2001. Personnel Private Banking into Credit Suisse
costs at Credit Suisse First Boston Financial Services is expected to result
were reduced by 10% in US dollar in substantial cost savings and
terms quarter-on-quarter, and the synergies. Further details will be forth-
ratio of compensation to operating coming as plans develop during the
income came down to 57.6% in balance of the current year.
the second quarter of 2001, com-
pared to 60.6% for the same Change in Board of Directors
period in 2000. Thomas Schmidheiny has announced
his retirement from Credit Suisse
Group’s Board of Directors in order to
New organisation of Credit Suisse
concentrate on his own business
Group as of 2002
On 12 July 2001, Credit Suisse Group interests. He first joined the Board of
appointed John J. Mack as Chief Directors of the former Schweizerische
Executive Officer of Credit Suisse First Kreditanstalt in 1982, becoming a
Boston and Vice-Chairman of the member of Credit Suisse Group’s
Group Executive Board. It also an- Board in 1989. The Board of Directors
nounced that on 1 January 2002, thanks Thomas Schmidheiny for his
Credit Suisse Asset Management will valuable contribution to the success of
be combined with Credit Suisse First the Group over these many years.
Boston, and Credit Suisse Private
Banking with Credit Suisse Financial Share repurchase programme
Services. As part of its share repurchase pro-
As a result, Credit Suisse Group gramme approved by the Annual
will be comprised of two business General Meeting on 1 June 2001,
units, Credit Suisse First Boston and Credit Suisse Group repurchased
Credit Suisse Financial Services. The 3,735,000 shares at a par value of
Group Executive Board will consist of CHF 20 each through a second trad-
www.credit-suisse.com 7
10. REVIEW OF BUSINESS UNITS
Credit Suisse Financial Services
tinuing difficult market environment.
Credit Suisse Financial Services
Excluding the Credit Suisse Personal
reported a net operating profit of CHF
Finance business unit – which is in-
504 million for the second quarter of
vesting heavily in pan-European expan-
2001, up 18% on the first quarter. Net
sion – net operating profit for the first
operating profit for the first half of
half of 2001 rose 13% to CHF 1.1 bil-
2001 stood at CHF 932 million, down
lion, corresponding to an annualised
Thomas Wellauer 2% on the strong first half of 2000. Net
operating return on average equity
Chief Executive Officer new assets totalled CHF 3.5 billion for
capital of 22.2%.
the first half year.
Credit Suisse Financial Services Winterthur Insurance
achieved a strong result in the second In the first half of 2001, Winterthur
quarter of 2001, particularly in the in- Insurance reported a 15% increase in
surance businesses, despite the con- net premiums earned compared with
Overview of business area Credit Suisse Financial Services Credit Credit
Winterthur Credit Suisse Suisse
6 months 2001 Winterthur Life & Suisse Personal Financial
in CHF m Insurance Pensions Banking Finance Services
1,811 1) 1,416 1)
Operating income 1,965 29 5,221 2 462
1,149 1) 6951)
Operating expenses 1,261 240 3,345 1 628
662 1) 7211)
Gross operating profit 704 (211) 1,876) 834
Depreciation and write-offs on non-current assets 2) 77 158 55 11 301 131
Valuation adjustments, provisions and losses 3) 0 0 165 1 166 86
Profit before extraordinary items, taxes 2) 585 563 484 (223) 1,409) 617
Extraordinary income/(expenses), net 0 0 9 (1) 8 (1
Taxes (180) (129) (127) 28 (408) 168
Net operating profit before minority interests 2) 405 434 366 (196) 1,009) 450
Amortisation of goodwill, net of tax 11 14 5 3 33
Net profit before minority interests 394 420 361 (199) 97614 436
Minority interests (55) (21) (1) 0 (77)
Net profit 339 399 360 (199) 899
Net operating profit 2) 350 413 365 (196) 932
6,465 4) 10,887 4)
Average allocated capital 4,394 28
25.2% 4) 17.9% 4)
Return on average allocated capital 16.4% n/a
Return on average allocated capital (operating) 2) 26.0% 4) 18.5% 4)
16.7% n/a
Increased/(decreased) credit-related valuation adjustments 3) – – (5) – (5)
Assets under management in CHF bn 32.6 109.4 130.3 6.1 278.4
– of which discretionary 32.6 109.4 2.5 3.0 147.5 4.6
Net new assets in CHF bn n/a 2.7 0.1 0.7 3.5 145.3
Client assets in CHF bn 32.6 109.4 145.7 6.1 293.8
1)
Defined as premiums earned (net), less claims and annuities incurred and expenses for processing claims as well as provisions for future policy benefits, less commissions
(net), plus investment income from insurance business; expenses from the handling of both claims and investments are allocated to revenue; personnel expenses Winterthur
Insurance: CHF 224 m, Winterthur Life & Pensions: CHF 68 m; operating expenses Winterthur Insurance: CHF 94 m, Winterthur Life & Pensions: CHF 48 m.
2)
Excl. amortisation of goodwill.
3)
Increased/decreased valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.
4)
For Winterthur business units, average invested capital is used for calculation of return on invested capital (ROIC).
8
11. Winterthur Insurance income statement
Veränderung
(non-life business) 6 months 6 months Change in % seit
Q2/2001 Q1/2001 Q2/2000 2001 2000 6 months Q1/2000
in CHF m in CHF m in CHF m in CHF m in CHF m 2001/2000 in %
4,339 6,774 3,834 11,113 8,736 27 38
Gross premiums written
(445) (601) (436) (1,046) (993) 5 8
Reinsurance ceded
3,894 6,173 3,398 10,067 7,743 30 42
Net premiums written
Change in provision for unearned premiums and in
(7) (2,556) 70 (2,563) (1,190) 115 103
provision for future policy benefits (health)
3,887 3,617 3,468 7,504 6,553 15 17
Net premiums earned
(3,056) (2,799) (2,668) (5,855) (5,069) 16
Claims and annuities incurred, net
(71) (112) (94) (183) (188) (3)
Dividends to policyholders incurred, net
(1,172) (1,049) (1,005) (2,221) (1,960) 13
Operating expenses, net (incl. commissions paid)
(412) (343) (299) (755) (664) 14
Underwriting result, net
825 529 594 1,354 1,126 20
Net investment income
17 7 23 24 46 (48)
Interest received on deposits and bank accounts
(41) (26) (34) (67) (68) (1)
Interest paid
43 2)
Other income/(expenses) (incl. exchange rate differences) 1) (14) 41 29 68 (57)
Profit before extraordinary items, taxes 1) 375 210 325 585 508 15 15
0 0 0 0 0 – –
Extraordinary income/(expenses), net
(120) (60) (97) (180) (144) 25
Taxes
Net operating profit before minority interests 1) 255 150 228 405 364 11 10
6 5 4 11 8 38
Amortisation of goodwill
249 145 224 394 356 11
Net profit before minority interests
10
(38) (17) (26) (55) (36) 53
Minority interests
6) 70
211 128 198 339 320
Net profit
5
7 2 319 757 -
Net operating profit 1) 217 133 202 350 328
12
1)
Excl. amortisation of goodwill.
2)
Incl. a partial recognition of CHF 43 m before tax related to the sale of Winterthur International.
Winterthur Insurance key information
(non-life business)
6 months 6 months
Q2/2001 Q1/2001 Q2/2000 2001 2000
108.8% 106.4% 105.9% 107.6% 107.3%
Combined ratio (excl. dividends to policyholders)
78.6% 77.4% 76.9% 78.0% 77.4%
Claims ratio
30.2% 29.0% 29.0% 29.6% 29.9%
Expense ratio
30 June 2001 31 March 2001 31 Dec. 2000
32.6 32.7 32.5
Assets under management in CHF bn
30,339 30,132 26,653
Technical provisions in CHF m
22,516 22,244 21,796
Number of employees
www.credit-suisse.com 9
12. REVIEW OF BUSINESS UNITS
Winterthur Life & Pensions income statement 1999
(life business) 1999
6 months 6 months Change in % in Mio USD
Q2/2001 Q1/2001 Q2/2000 2001 2000 6 months 1999
in CHF m in CHF m in CHF m in CHF m in CHF m 2001/2000 in Mio USD
Gross premiums written 3,187 6,189 3,340 9,376 8,561 10
Reinsurance ceded (7) (51) (61) (58) (156) (63)
Net premiums written 3,180 6,138 3,279 9,318 8,405 11
Change in provision for unearned premiums 3 (14) 0 (11) 0 –
Net premiums earned 3,183 6,124 3,279 9,307 8,405 11
Death and other benefits incurred (2,687) (3,686) (2,558) (6,373) (4,908) 30
Change in provision for future policyholder benefits (1,205) (2,094) (984) (3,299) (4,064) (19)
Dividends to policyholders incurred (228) (403) (450) (631) (1,161) (46)
Operating expenses, net (incl. commissions paid) (581) (372) (363) (953) (756) 26
Net investment income 1,919 793 1,378 2,712 3,150 (14)
Interest received on deposits and bank accounts 24 13 22 37 44 (16)
Interest on bonuses credited to policyholders (40) (32) (29) (72) (58) 24
Other interest paid (62) (37) (59) (99) (118) (16)
Other income/(expenses) (incl. exchange rate differences) 1) (27) (39) (72) (66) (164) (60)
Profit before extraordinary items, taxes 1) 296 267 164 563 370 52
Extraordinary income/(expenses), net 0 0 0 0 0 –
Taxes (66) (63) (23) (129) (53) 143
Net operating profit before minority interests 1) 230 204 141 434 317 37
Amortisation of goodwill 9 5 4 14 7 100
Net profit before minority interests 221 199 137 420 310 35
Minority interests (16) (5) (14) (21) (28) (25)
Net profit 205 194 123 399 282 41
Net operating profit 1) 214 199 127 413 289 43 464
3
1)
Excl. amortisation of goodwill.
Winterthur Life & Pensions key information
(life business)
6 months 6 months
Q2/2001 Q1/2001 Q2/2000 2001 2000
Expense ratio 1) 18.3% 6.1% 11.1% 10.2% 9.0%
2)
21 bp 19 bp 15 bp 39 bp 35 bp
Net return on average technical provisions
Net new assets in CHF bn 3) 0.6 2.1 0.2 2.7 1.6
30 June 2001 31 March 2001 31 Dec. 2000
Assets under management in CHF bn 4) 104.7
109.4 107.1
105,522
108,926 107,390
Technical provisions in CHF m
6,562
7,276 7,095
Number of employees
1)
Operating expenses/earned premiums.
2)
Net profit before minority interests/average technical provisions.
3)
Based on change in technical provisions for traditional business, adjusted for technical interests; net cash flow unit-linked business; and change in off-balance sheet
business such as funds.
4)
Based on savings-related provisions for policyholders plus off-balance sheet assets.
10
13. the corresponding period of the previ- Life UK following the acquisition of saw its operating return on equity de-
ous year. All major Market Units Colonial, contributed to this positive cline slightly to 16.7%. The operating
achieved strong growth rates and a result. cost/income ratio increased from
number of new products were During the reporting period, 61.1% to 67.0% in the first half of the
launched successfully. Winterthur Life & Pensions made sig- year, owing to lower revenue reflecting
Growth above the industry average, nificant progress in the implementation lower securities commission volume.
particularly with Churchill in the UK, of strategic projects and successfully Mortgage volumes in the private
as well as rate increases impacted launched several new unit-linked prod- client business recorded an annualised
premium growth. The full consolidation ucts for affluent clients in the UK and increase of 5%. Net new asset growth
of NIG also contributed to a doubling Japan. in the funds business was above aver-
of premium volume in the UK. Rate in- age at 11% on an annual basis, de-
creases in North America, Germany and spite the difficult market environment.
Credit Suisse Banking
Belgium supported double-digit growth With a net operating profit of CHF 365 Major transactions in corporate client
in these markets. Excluding the effects million for the first half of 2001, Credit business resulted in a decrease in net
of the NIG acquisition, net premiums Suisse Banking was down CHF 14 new assets from CHF 2.1 billion for
earned grew at 10% compared with the million or 4% on its figure for the previ- the first quarter of 2001 to CHF 0.1
corresponding period a year earlier. ous year. The effects of the challenging billion for the first half. Owing to nega-
Despite progress in expense market environment for asset gathering tive developments in the financial mar-
management, the combined ratio rose revenues were partially offset by lower kets, securities commissions dropped
by 0.3 percentage points to 107.6% credit charges. 50% versus the first half of 2000. In
in the first half of 2001. This was Second-quarter net operating profit corporate client business, Credit
driven by increased loss experience, decreased by 5% versus the first quar- Suisse Banking increased lendings
particularly in North America, where ter of 2001. Credit Suisse Banking (excl. mortgages) to customers by
a number of spring storms and un-
favourable development in workers’
compensation insurance impacted the
entire sector.
Net operating profit for the first half
of 2001 stood at CHF 350 million, up
7% on the corresponding figure for
2000. Due to expected seasonal fac-
tors and to higher investment income,
net operating profit for the second
quarter of 2001 grew by 63% versus
the previous quarter.
Winterthur Life & Pensions
Winterthur Life & Pensions achieved a
10% rise in premiums compared with
the first half of 2000. Net new assets
stood at CHF 0.6 billion for the second
quarter and CHF 2.7 billion for the first
half of 2001.
Net operating profit rose signifi-
cantly to CHF 413 million in the first
half of the year, corresponding to a
43% increase on the first half of 2000.
The improved core operating per-
formance in several countries, as well
as an exceptional after-tax income of
CHF 26 million net related to adjust-
ments on the accounts of Winterthur
www.credit-suisse.com 11
14. REVIEW OF BUSINESS UNITS
Credit Suisse Banking income statement 1)
6 months 6 months Change in %
Q2/2001 Q1/2001 Q2/2000 2001 2000 6 months
in CHF m 1) 2001/2000
in CHF m in CHF m in CHF m in CHF m
Net interest income 618 614 582 1,232 1,166 6
Net commission and service fee income 263 281 279 544 599 (9)
Net trading income 79 84 85 163 177 (8)
Other ordinary income 22 4 (1) 26 10 160
Operating income 982 983 945 1,965 1,952 1
Personnel expenses 417 403 378 820 734 12
Other operating expenses 229 212 183 441 432 2
Operating expenses 646 615 561 1,261 1,166 8
Gross operating profit 336 368 384 704 786 (10)
Depreciation and write-offs on non-current assets 2) 22 33 16 55 26 112
Valuation adjustments, provisions and losses 3) 79 86 116 165 283 (42)
Profit before extraordinary items, taxes 2) 235 249 252 484 477 1
Extraordinary income/(expenses), net 7 2 1 9 22 (59)
Taxes 4) (63) (64) (61) (127) (119) 7
Net operating profit before minority interests 2) 179 187 192 366 380 (4)
Amortisation of goodwill, net of tax 2 3 3 5 6 (17)
Net profit before minority interests 177 184 189 361 374 (3)
Minority interests (1) 0 0 (1) (1) 0
Net profit 176 184 189 360 373 (3)
Net operating profit 2) 178 187 192 365 379 (4)
Increased/(decreased) credit-related valuation adjustments 28 (33) (18) (5) (66) –
Tax on amortisation of goodwill 1 0 0 1 0 –
1)
Half-year comparative figures have been adjusted to reflect the current business unit reporting structure.
2)
Excl. amortisation of goodwill.
3)
Increased/decreased valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.
4)
Excl. tax on amortisation of goodwill
18% in the first half of 2001, while
also further improving the risk structure
of its credit portfolio. Credit provision
and losses decreased 42% compared
with the first half of 2000.
In the second quarter of 2001, the
number of Direct Net customers
grew by almost 25,000, or 9%, to
313,000 (+44% versus the end of
June 2000). The number of payment
orders executed electronically remained
stable versus the first quarter, totalling
approximately 3 million (+90% com-
pared with the second quarter of
2000).
12
15. Credit Suisse Banking balance sheet information
30 June 2001 31 Dec. 2000
in CHF m in CHF m
Total assets 105,140 100,653
Due from customers 32,271 28,940
Mortgages 65,439 64,616
Due to customers in savings and investment deposits 32,259 33,322
Due to customers, other 34,872 31,287
Credit Suisse Banking key information
6 months 6 months
Q2/2001 Q1/2001 Q2/2000 2001 2000
Cost/income ratio 68.3% 66.2% 61.4% 67.3% 61.4%
Cost/income ratio (operating) 1) 68.0% 65.9% 61.1% 67.0% 61.1%
Return on average allocated capital 16.5% 16.6% 17.1% 16.4% 16.7%
Return on average allocated capital (operating) 1) 16.7% 16.9% 17.4% 16.7% 17.0%
Average allocated capital in CHF m 4,289 4,428 4,409 4,394 4,476
Pre-tax margin 24.3% 25.2% 26.5% 24.8% 25.3%
Pre-tax margin (operating) 1) 24.6% 25.5% 26.8% 25.1% 25.6%
Personnel expenses/operating income 42.5% 41.0% 40.0% 41.7% 37.6%
Net interest margin 238 bp 242 bp 236 bp 240 bp 236 bp
Loan growth 2.3% 2.2% 0.1% 4.5% 1.5%
Net new assets in CHF bn (2.0) 2.1 (0.2) 0.1 2.8
30 June 2001 31 March 2001 31 Dec. 2000
Deposit/loan ratio 68.7% 70.9% 69.1%
Assets under management in CHF bn 130.3 130.8 130.8
Number of branches 232 234 235
Number of employees 11,842 11,576 11,438
1)
Excl. amortisation of goodwill.
www.credit-suisse.com 13
16. REVIEW OF BUSINESS UNITS
Credit Suisse Personal Finance income statement 1)
6 months 6 months Change in %
Q2/2001 Q1/2001 Q2/2000 2001 2000 6 months
in CHF m 1) 2001/2000
in CHF m in CHF m in CHF m in CHF m
Net interest income 4 3 3 7 5 40 (27
Net commission and service fee income 9 11 17 20 26 (23)
Net trading income 1 2 1 3 3 0 78
Other ordinary income (1) 0 0 (1) 0 – –
Operating income 13 16 21 29 34 (15)
Personnel expenses 43 49 23 92 40 130 50
Other operating expenses 78 70 28 148 54 174 34
Operating expenses 121 119 51 240 94 155 46
Gross operating profit (108) (103) (30) (211) (60) 252 24
2)
Depreciation and write-offs on non-current assets 5 6 1 11 2 450 74
Valuation adjustments, provisions and losses 1 0 0 1 0 – (32
Profit before extraordinary items, taxes 2) (114) (109) (31) (223) (62) 260 33
Extraordinary income/(expenses), net 0 (1) 0 (1) 0 – 29
Taxes 9 19 8 28 15 87 34
Net operating profit before minority interests 2) (105) (91) (23) (196) (47) 317
Amortisation of goodwill 2 1 2 3 3 0 285
Net profit before minority interests (107) (92) (25) (199) (50) 298 25
Minority interests 0 0 0 0 0 –) 200
Net profit (107) (92) (25) (199) (50) 298 25
Net operating profit 2) (105) (91) (23) (196) (47) 317 34 58
59
1)
Half-year comparative figures have been adjusted to reflect the current business unit reporting structure.
2)
Excl. amortisation of goodwill.
in the first quarter of 2001. The rise in
Credit Suisse Personal Finance
Credit Suisse Personal Finance started costs versus the first quarter of 2001
operations in Spain and Germany in the was attributable to preparations for the
second quarter of 2001; the actual launch of Credit Suisse Personal
launch of its offerings in these coun- Finance in Spain and Germany.
tries is scheduled for the third quarter. Credit Suisse Personal Finance’s
The integration of the Spanish broker significant investment programme in
and asset manager General de Valores these important asset gathering
y Cambios is proceeding on sched- channels will continue to generate
ule and should also be completed in losses.
the third quarter. The Swiss online broker youtrade
In Italy, Credit Suisse Personal increased its customer base by 5% in
Finance posted lower-than-expected the second quarter; approximately
results owing to difficult market condi- 80,500 transactions were executed.
tions. At end-June, assets under man- Net new asset inflow in the second
agement in the Personal Finance area quarter was CHF 0.1 billion, and total
stood at CHF 5.1 billion. It reported assets under management amounted
CHF 0.2 billion in net new assets in the to CHF 1.0 billion at the end of June
second quarter, versus CHF 0.3 billion 2001.
14
17. Credit Suisse Personal Finance key information
6 months 6 months
Q2/2001 Q1/2001 Q2/2000 2001 2000
Personal Finance
Growth in assets under management 4.3% 1.4% 3.7% 5.7% 30.6%
– of which net new assets 3.5% 7.2% 10.0% 10.8% 31.3%
– of which market movement and structural effects 0.8% (5.8%) (6.3%) (5.1%) (0.7%)
youtrade
Number of transactions (in ’000s) 81 108 101 189 234
Credit Suisse Personal Finance
Average allocated capital in CHF m 29 32 n/a 28 n/a
30 June 2001 31 March 2001 31 Dec. 2000
Personal Finance
Assets under management in CHF bn 5.1 4.9 4.8
Number of clients 20,097 19,381 17,898
Number of advisors 407 337 331
youtrade
Assets under management in CHF bn 1.0 0.9 0.9
Number of clients 28,656 27,267 25,228
Credit Suisse Personal Finance
Number of employees 1,011 900 764
www.credit-suisse.com 15
