Credit Suisse -- Presentation of Credit Suisse Group’s second quarter 2014 Earnings Release Dienstag, 22. Juli 2014 - 06:31

Credit Suisse Group's second quarter 2014 results

Credit Suisse 2Q14 results: Core pre-tax income of CHF 1,767 million for strategic businesses and return on equity of 13%; reported Core pre-tax loss of CHF 370 million, reflecting the previously announced CHF 1,618 million charge relating to the final settlement of all outstanding US cross-border matters

Credit Suisse 6M14 results: Core pre-tax income of CHF 3,707 million for strategic businesses and return on equity of 13%; reported Core pre-tax income of CHF 1,030 million

Look-through CET1 ratio of 9.5% as of the end of 2Q14; on track to exceed 10% by year-end 2014

Resilient 2Q14 performance of Private Banking & Wealth Management’s strategic businesses with strong net new assets of CHF 11.8 billion

2Q14 Investment Banking results reflect strong origination activity, continued strong performance in credit and securitized products and improved capital efficiency

Private Banking & Wealth Management strategic performance reflecting lower revenues but continued efficiency gains:

		2Q14 resilient profitability in strategic businesses with pre-tax income of CHF 882 million, down 13% from a very strong 2Q13, and a return on capital of 28%
		2Q14 total reported pre-tax loss of CHF 749 million, including the previously announced CHF 1,618 million charge relating to the final settlement of all outstanding US cross-border matters
		Further increased cost efficiency of strategic businesses in 6M14 with cost/income ratio of 68%, improved from 71% in 6M13
		Increased Wealth Management Clients net margin to 28 basis points for 6M14, supported by significant progress on cost reduction
		Wealth Management Clients 2Q14 gross margin at 99 basis points, down five basis points compared to 1Q14, reflecting an increase in assets under management, a change in client mix, lower fee-based revenues and slightly lower net interest income
		Strong 2Q14 net new assets from strategic businesses of CHF 11.8 billion with annualized growth rate of 4%, notwithstanding continued outflows of CHF 2.9 billion from Western European cross-border business due to substantial progress on regularization of asset base; total net new assets of CHF 10.1 billion with total Western European cross-border outflows of CHF 4.1 billion

Investment Banking performance reflecting stability of diversified strategic franchise:

		Strategic businesses with pre-tax income of CHF 1,034 million and return on capital of 18%; strong performance from fixed income yield franchises and underwriting businesses, partly offset by less favorable trading conditions for equity sales and trading and continued weakness in global macro products
		Total reported pre-tax income of CHF 752 million with strong performance in key businesses and acceleration in the wind-down of the non-strategic unit
		Strong 6M14 return on capital in Investment Banking, with 20% from strategic businesses and solid 13% in total reported results
		Restructuring of macro business, including exit from commodities trading, to further enhance capital and operating efficiencies targeting approximately USD 200 million in expense savings, USD 8 billion in risk-weighted asset reduction and USD 25 billion in leverage exposure reduction by the end-state

Resilient Capital base and leverage ratio as of the end of 2Q14, notwithstanding the settlement of the US cross-border matter:

		Look-through BIS CET1 ratio of 9.5%, progress in executing capital measures expected to fully mitigate impact of litigation settlement and on track to exceed 10% CET1 ratio by year-end, including continued accrual of cash dividend for 2014; Look-through Swiss total capital ratio at 15.3%
		Leverage exposure at CHF 1,156 billion; Phase-in Swiss leverage ratio of 4.8%; Look-through Swiss leverage ratio of 3.7% within reach of the 2019 requirement of 4%

On track to reach cost reduction targets:

		Delivered CHF 3.4 billion of adjusted annualized savings compared to the annualized expense run rate for 6M11; maintaining momentum towards target of over CHF 4.5 billion by end-2015

Wind down of non-strategic units and progress in resolving legacy litigation issues:

		Wind-down ahead of schedule with Swiss leverage exposure reduction of USD 3 billion and risk-weighted asset reduction of USD 6 billion in the Investment Banking non-strategic unit
		Significant progress in resolving key legacy litigation issues in 2014 to date

July 22, 2014 Credit Suisse Group reports 2Q14 and 6M14 results

Read the full earnings release including quantitative disclosures

Presentation of Results

Tuesday, July 22, 2014

Time
08:30 CEST / 07:30 BST / 02:30 EDT

Speakers
Brady W. Dougan, Chief Executive Officer of Credit Suisse Group
David Mathers, Chief Financial Officer of Credit Suisse Group
(The presentations will be given in English.)

Webcast
www.credit-suisse.com/results

Kind regards

Credit Suisse Group
Investor Relations
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CH-8070 Zurich

Tel. +41 44 333 71 49
Fax +41 44 333 59 93

investor.relations@credit-suisse.com