1. Bank am Bellevue
“The perfect business model?!”
Renato Fassbind, Chief Financial Officer
Flims, 16th January 2009
2. Cautionary statement
Cautionary statement regarding forward-looking and non-GAAP information
This presentation contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks
and uncertainties, and we might not be able to achieve the predictions, forecasts,
projections and other outcomes we describe or imply in forward-looking statements.
A number of important factors could cause results to differ materially from the plans,
objectives, expectations, estimates and intentions we express in these forward-looking
statements, including those we identify in quot;Risk Factorsquot; in our Annual Report on Form 20-
F for the fiscal year ended December 31, 2007 filed with the US Securities and Exchange
Commission, and in other public filings and press releases. We do not intend to update
these forward-looking statements except as may be required by applicable laws.
This presentation contains non-GAAP financial information. Information needed to reconcile
such non-GAAP financial information to the most directly comparable measures under
GAAP can be found in Credit Suisse Group's third quarter report 2008.
Slide 1
3. Key messages
Accelerated implementation of strategic plan
Resilient Private Banking performance and continued global expansion
Repositioning the Investment Bank and further risk reduction
Strength of capital and liquidity position
Continued implementation of the integrated bank strategy
Slide 2
4. Accelerated implementation of strategic plan
Continued commitment to integrated business model;
growth of Private Banking globally and Swiss businesses
Accelerated repositioning of the Investment Banking business
portfolio with a reduction in risk, volatility and costs
Continue to focus Asset Management business and align it with the bank’s
other businesses
Positions Credit Suisse strongly with reduced risk,
lower costs and strong capital to enable us to weather the continuing market
challenges, capture opportunities, and prosper when markets improve
Slide 3
5. Adjusting capacity
Efficiency improvements Headcount Credit Suisse (period end)
! Reduction in headcount by 5,300, or 11% 50,300
44,600 44,900 48,100
! Nearly 50% of
− plus an additional reduction of 1,400
headcount reduction
contractors
by year-end, with
! CHF 2 billion cost reduction, representing 9% remainder sche-
of the bank’s 9M08 annualized cost base, most duled during 1H09
of which is to be implemented by mid-2009 2005 2006 2007 3Q08
Headcount Investment Banking (period end)
20,600 21,300
17,300 18,700 17,500
! Approx. 2/3 of total headcount reduction relates
to Investment Banking, including Shared
Services personnel
2005 2006 2007 3Q08 2009E
Slide 4
6. Attractive long-term growth trends in Private Banking…
Long-term growth prospects for wealth Private Banking pre-tax income
managers remain intact CHF bn
! Rise of emerging markets
5,486
! Generational transfers of wealth
! quot;Private investment bankingquot; 4,596
3,643 1)
3,966
3,717
3,333
We are well positioned to face
challenges and outperform competition
! Global presence and brand
! Strong balance sheet and capital
! Unique integrated bank approach
2004 2005 2006 2007 9M08
1) Excluding provisions of CHF 310 m relating to settlement agreements for auction rate securities
Slide 5
7. ..with an increased presence in new markets…
Continued
! 18 new offices in 4 new
investment in
markets since 2007
Eastern Europe
Accelerated
and Russia
growth in Western ! 40% of asset inflows from
Continue turnaround in Europe hires made over last 3 years
the US
China onshore established
Implementing
India onshore
Gulf: leverage
integrated bank Japan onshore in
Mexico onshore in preparation
preparation Relationship managers (RMs)
at year-end 4,100
Expanded presence 3,510
3,140
in Brazil (Hedging- 2,540
Griffo) +370
Australia onshore
+200 p.a.
launched
Goal
2004 2007 11M08
2010
Slide 6
8. Repositioning the Investment Bank
Challenging market environment… Credit Suisse strategic response
! Weaker macroeconomic trends leading to ! Reduce volatility and improve capital
volatile markets efficiency
! More conservative behavior from market ! Focus on client and flow-based businesses
participants leading to lower financial leverage (e.g. building on strength in algorithmic
and reduced demand for complex products trading, cash equities, prime services, rates,
FX and high grade credit)
…but some positive trends for Credit Suisse
! Cuts in origination cost base and risk limits
! Investor preference for strong counterparties
for complex credit and structured products
! Increased demand for exchange-based
! Reduction in risk capital usage, including exit
products – structural growth in electronic
from certain proprietary and principal trading
trading across products
activities and aligning lending with customer
! Positive outlook for Rates and FX given fiscal franchises
and macro trends
! Investment Banking will remain a valuable
! Fewer competitors and better pricing contributor to the integrated bank with lower
volatility and attractive risk returns
Slide 7
9. Repositioning the Investment Bank:
Robust earnings and returns over the cycle with lower volatility
Investment Banking revenue (USD bn)
! Proforma analysis of repositioned
As reported
Proforma
Investment Bank demonstrates robust
16.4 15.7
14.4
revenues and earnings, and lower volatility
12.4 11.5 10.9
9.4 of this business model over the last
four years
0.4
YTD Nov
2005 2006 2007
2008
Investment Banking pre-tax income (USD bn) ! Average margins and returns should be
higher through the cycle
Proforma
3.7
2.0 2.0
0.5
! Significantly lower risk capital usage in
YTD Nov
2005 2006 2007
Investment Bank resulting in a more
2008
balanced capital allocation across
Proforma risk-weighted assets (USD bn)
Credit Suisse
99 129 161 135
Slide 8
10. Strong growth in client businesses in Investment Banking
Global rates/FX revenues 1)
Electronic trading revenues Prime services client balances
CHF m CHF m CHF bn
369
1,080
335
+108%
+52% +74%
1Q 2Q 3Q 4Q 2Q 3Q 1Q 2Q 3Q 4Q 2Q 3Q 1Q 2Q 3Q 4Q 2Q 3Q
1Q 1Q 1Q
2007 2008 2007 2008 2007 2008
! Record volumes set in September ! Record results in 3Q08 due to ! Strong growth in client balances and
high volatility with wider bid/offer new client mandates
! Credit Suisse's CrossFinder spreads and significant ! Credit Suisse viewed as strong
product is the #2 dark pool trading
rebalancing by clients counterparty and “safe haven”
tool in the U.S. (more than 160
! Remain selective; 40% acceptance rate
! Significant profits in intraday
million shares/day crossed)
trading with minimal risk and client
! Trend for increasing number of crossing
financial products will move to
electronic trading platforms
1) Excluding derivative rate exposures
Slide 9
12. Further risk reduction in Investment Banking
Continued risk reduction Investment Banking RWAs (period end in USD bn)
! On a consistent methodology basis, risk- 236 230 214
weighted assets (RWAs) expected to decline to 193
170
135
− USD 170 bn at year-end 2008, and (12%) (21%)
(18%)
− USD 135 bn by year-end 2009
2007 1Q08 2Q08 3Q08 2008E 2009E
Investment Banking average 1-Day VaR
(Period end in USD m)
186
Dataset /
174
! Underlying 1-day Value-at-Risk (VaR) declined methodology effect 158
Positioning
124
− 33% vs. 3Q08 average
96
(quarter-on-quarter)
89
78
− 55% vs. 2007 average 72
63 52
(year-on-year) 35
Nov 30 1)
2006 2007 1Q08 2Q08 3Q08
1) VaR on November 30, 2008
Slide 11
13. Continue to streamline Asset Management division
! Asset Management business to focus on core competencies and alignment with
integrated bank
! Exit parts of long-only traditional asset management business that lack scale
Multi-asset class solutions Alternative Investments Global Investors
! CHF 153 bn AuM ! CHF 170 bn AuM ! CHF 157 bn AuM, mostly
managed in Switzerland
! 37 bps gross margin ! 67 bps gross margin
! Traditional long-only equity and
! Active asset allocation ! Private equity, real estate, credit
fixed income mandates
strategies and solutions across and hedge fund strategies
all asset classes ! Integrated into other businesses
! Continue to expand fee-based
! Key product offering for Private to gain further efficiencies
businesses
Banking clients (discretionary ! Despite challenging markets,
Sold to Aberdeen in 4Q08
mandates) investment opportunities persist
! CHF 75 bn assets managed
outside Switzerland
! Receive stake of up to 24.9% in
Aberdeen (GBP 250 m)
Slide 12
14. Capital strength as competitive advantage
Tier 1 capital and tier 1 capital ratio
! Have taken pro-active steps by
raising CHF 10 bn of capital (CHF bn and %)
13.7%
! 3Q08 proforma positions is
10.2% 10.4%
Tier 1
exceeding SFBC’s 2013 capital 9.8%
capital ratio
targets and leverage requirements 42.2
! Strongly positioned to continue
32.2
30.8
building client franchises and take 29.4
Hybrid tier 1
advantage of targeted growth
capital
opportunities
Core tier 1
capital
1Q08 2Q08 3Q08 3Q08
proforma
SFBC = Swiss Federal Banking Commission
Slide 13
15. Solid funding structure
Asset and liabilities by category Private banking and other customer deposits
CHF bn at end of 3Q08 CHF bn
1,394 1,394
288
Reverse 379 Repo 338
261
repo +10%
Trading 187
Trading 515
and liquid Short-term 114
assets
Long-term 165
debt
Private 288
Loans 239 banking & other
121%
deposits
coverage
Other 263
Other 261
Equity 39 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
Assets Capital & liabilities
Slide 14
16. Continue to focus on achieving integration benefits;
2010 target collaboration revenues of over CHF 10 bn
Core and collaboration revenues Gross margin with Wealth Management clients
CHF bn in bps
1)
Core revenues
130
(different scale)
129
37.9 Collaboration 16
14
revenues Referred
34.9 5.9 to IB/AM
19.3
4.9
4.0 115 114
Booked in
Wealth
Management
9M07 9M08
2006 2007 9M08
1) Excludes valuation reductions and fair value gains/losses on own debt of total CHF 2.9 bn
and CHF 5.3 bn in 2007 and 9M08, respectively
Slide 15
