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1. Q4 QUARTERLY RESULTS 2004 2. DISCLAIMER Cautionary statement regarding forward-looking information This presentation contains forward-looking statements within the…
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  • 1. Q4 QUARTERLY RESULTS 2004
  • 2. DISCLAIMER Cautionary statement regarding forward-looking 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, 2003 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. Slide 1
  • 3. GOOD FULL-YEAR RESULTS 2004 4Q04 in CHF m Net income 5,628 959 Basic earnings per share (in CHF) 4.80 0.82 Return on equity 15.9% 10.6% BIS Tier 1 ratio (31.12.04) 12.3% S Fourth quarter results include increase in provision of CHF 242 m related to the 2001 sale of Winterthur International, loss on disposal of a minority holding of CHF 148 m and severance payments at CSFB of CHF 112 m (all after tax) S Strong momentum in capital generation < Dividend proposed of CHF 1.50 per share < Ask Annual General Meeting for permission to repurchase shares for up to CHF 6 bn over two years Slide 2
  • 4. HIGHLIGHTS 2004 S Private Banking reported strong net income due to asset-driven revenue generation and efficiency improvements S Corporate & Retail Banking achieved a very good result, driven by increased commission and fee income, efficiency improvements and a low level of credit provisions S Institutional Securities demonstrated an improvement over 2003 driven by higher trading results, gains on investments, lower provisions for credit losses and lower income tax expense S Wealth & Asset Management result reflects significant levels of private equity investment-related gains S Improved underwriting results at Life & Pensions and Non-Life – due to cost containment and efficiency improvements – and stable investment income with lower levels of realized losses Slide 3
  • 5. STRATEGIC PLAN UPDATE S Full integration of banking activities to create three distinct lines of business: Private Client Services, Corporate & Investment Banking, Asset Management < Implementation over 18 months to 2 years S As a first step, focus currently on legal entity merger of the two Swiss banks, Credit Suisse and Credit Suisse First Boston < Legal status of US, UK and other local broker dealers remains unaffected < No significant impact on client facing activities S Execution of merger of the two legal bank entities in Switzerland scheduled for second quarter 2005, as an important facilitator to implement the ‘one bank’ structure Slide 4
  • 6. Q4 FINANCIAL REVIEW 2004 Slide 5
  • 7. PERFORMANCE VERSUS GOALS Medium- 2004 Term Goals all goals on full-year basis ≥ 130 bp Private Banking Gross margin 134 bp Credit Suisse Cost/income ratio 58 % < 55 % Net new assets growth 5.2 % >5% Corporate & Revenue growth 2% >5% Retail Banking Cost/income ratio 61 % < 60 % Return on allocated capital 18 % > 15 % Pre-tax margin 1) Credit Suisse Business Unit 15 % > 20 % First Boston Return on allocated capital 16 % > 20 % A1 / A- / A+ 2) Business Unit IFS Rating Single A Winterthur Return on equity 9% > 12 % Non-Life Combined ratio 99.7 % < 98 % Life & Pensions Expense ratio 9.1 % <8% Consolidated Return on equity 16 % 15 % to 20 % Credit Suisse Group Tier 1 target 12.3 % > 10 % 1) Excluding minority interest results relating to the FIN 46R consolidation 2) For Moody’s, Standard & Poor’s and Fitch Ratings Slide 6
  • 8. PRIVATE BANKING STRONG ANNUAL RESULT Net income in CHF m 2,473 681 665 616 629 1,936 511 +21% +28% 4Q04 2004 4Q03 1Q04 2Q04 3Q04 2003 Slide 7
  • 9. PRIVATE BANKING CONTINUED EFFICIENCY IMPROVEMENTS in CHF m Revenues & expenses Net revenues Operating expenses 1,818 1,717 7,170 1,644 6,499 +4% +10% 1,082 4,143 993 994 4,005 +3% +0% 4Q04 4Q03 3Q04 2003 2004 59.5% 60.5% Cost/income ratio 61.6% 57.8% 57.8% Slide 8
  • 10. PRIVATE BANKING GROSS MARGIN AT TARGET LEVEL Gross margin Key drivers in 4Q04 in bp 146 142 139 134 128 7 133 10 122 7 20 11 5 4 S Higher brokerage S Increased client trading 57 48 37 45 45 47 39 in foreign exchange S Increased revenues from interest business 77 82 75 82 81 81 84 S Higher portfolio and other management fees 2003 2004 4Q03 1Q04 2Q04 3Q04 4Q04 Asset-driven Transaction-driven Other Slide 9
  • 11. PRIVATE BANKING NET NEW ASSET GROWTH ABOVE MEDIUM-TERM TARGET Net new assets Assets under management in CHF bn in CHF bn Annual growth rate: 539 544 541 537 3.8% in 2003 511 26.4 5.2% in 2004 3.9 +5% 3.8 7.9 17.9 10.8 +47% 2004 4Q04 2003 1Q04 2Q04 3Q04 4Q04 4Q03 1Q04 2Q04 3Q04 Slide 10
  • 12. CORPORATE & RETAIL BANKING VERY GOOD ANNUAL RESULT Net income in CHF m 901 257 256 586 199 189 +54% +29% 50 2004 4Q04 2003 4Q03 1Q04 2Q04 3Q04 Slide 11
  • 13. CORPORATE & RETAIL BANKING SOLID UNDERLYING REVENUES in CHF m Revenues & expenses Changes in fair value of interest rate derivatives used for risk management purposes that do not qualify for hedge accounting: (40) +72 +53 +6 +223 3,348 3,293 Net revenues Operating expenses +2% -1% 2,051 2,152 803 826 808 527 552 -5% 477 -9% 4Q04 2003 2004 4Q03 3Q04 Cost/income ratio 65.4% 61.3% 65.2% 66.8% 59.4% Slide 12
  • 14. INSTITUTIONAL SECURITIES ANNUAL RESULT DRIVEN BY HIGHER REVENUES, LOWER CREDIT PROVISIONS AND LOWER TAXES Net income in CHF m 1,313 1) 623 892 292 1) +47% 269 129 1) 96 -8% 2004 4Q04 2003 4Q03 1Q04 2Q04 3Q04 1) Including the release of tax contingency accruals of CHF 27 m and CHF 126 m in 2Q04 and 3Q04, respectively Slide 13
  • 15. INSTITUTIONAL SECURITIES CONTINUED STRONG FIXED INCOME TRADING Fixed income trading revenues in CHF m 5,507 1,869 5,110 1,348 1,278 1,012 +8% 884 -5% +45% 4Q04 2004 4Q03 1Q04 2Q04 3Q04 2003 Slide 14
  • 16. INSTITUTIONAL SECURITIES IMPROVED EQUITY TRADING Equity trading revenues in CHF m 3,472 3,203 1,105 828 843 696 659 +8% +19% +26% 4Q04 2004 4Q03 1Q04 2Q04 3Q04 2003 Slide 15
  • 17. INSTITUTIONAL SECURITIES MIXED INVESTMENT BANKING RESULTS Investment Banking revenues in CHF m Advisory Debt underwriting 3,465 3,328 Equity underwriting -17% -18% 902 868 840 839 718 -29% +7% -32% -5% +75% 4Q04 2004 4Q03 1Q04 2Q04 3Q04 2003 Slide 16
  • 18. INSTITUTIONAL SECURITIES CONTROLLED EXPENSES AND PRE-TAX MARGIN IMPROVEMENT Pre-tax margin 1) Total operating expenses in CHF bn in % Other operating expenses 22.2 Compensation and benefits 3.1 2.9 2.8 2.6 13.7 2.5 -7% 10.9 7.7 4.6 -4% 4Q04 4Q04 4Q03 1Q04 2Q04 3Q04 4Q03 1Q04 2Q04 3Q04 1) Excluding minority interest results relating to the FIN 46R consolidation Slide 17
  • 19. WEALTH & ASSET MANAGEMENT HIGHER REVENUES AND LOWER COSTS DRIVE ANNUAL RESULT IMPROVEMENT Net income in CHF m 530 301 233 1) 136 63 30 26 1) 2004 4Q04 2003 4Q03 1Q04 2Q04 3Q04 1) Including a charge of CHF 270 m for the impairment of acquired intangible assets Slide 18
  • 20. WEALTH & ASSET MANAGEMENT STRONG REVENUE GROWTH IN ACD AND HIGHER ASSET MANAGEMENT FEES Revenues by division 1) in CHF m 3,242 2,990 Investment related gains +30% 1,037 & Other +22% 956 -10% Private Client Services 772 798 Alternative Capital +15% 635 Division (ACD) +16% +88% Credit Suisse +4% Asset Management +17% 4Q04 2004 4Q03 1Q04 2Q04 3Q04 2003 1) Excluding minority interest revenues relating to the FIN 46R consolidation Slide 19
  • 21. WEALTH & ASSET MANAGEMENT NET NEW ASSETS FLAT FOR THE QUARTER Net new assets 1) Assets under management 1) in CHF bn in CHF bn (0.2) 482 1.2 0.6 2.7 (0.5) 475 495 489 488 4Q04 4Q04 4Q03 1Q04 2Q04 3Q04 4Q03 1Q04 2Q04 3Q04 Credit Suisse Alternative Capital Private Client Asset Management Division Services 1) Includes assets managed on behalf of other entities within Credit Suisse Group Slide 20
  • 22. LIFE & PENSIONS SOLID UNDERLYING EARNINGS POWER Net income in CHF m 522 1) 164 1) 152 139 67 -7% (176) (2,035) 2004 4Q04 2003 4Q03 1Q04 2Q04 3Q04 1) Including an increase in the amount of CHF 72 m in the valuation of deferred tax assets on net operating losses created in prior years Slide 21
  • 23. LIFE & PENSIONS STRONG GROWTH IN UNIT-LINKED BUSINESS AND CONTINUED COST REDUCTION Underwriting, acquisition and Total business volume in CHF m administration expenses in CHF m -14% 16,572 16,777 1,784 Policyholder 1,533 +28% deposits Underwriting and -27% acquisition expenses Gross premiums -10% Administration written -5% expenses 2004 2004 2003 2003 Slide 22
  • 24. LIFE & PENSIONS HIGHER INVESTMENT INCOME DRIVEN BY LOWER REALIZED LOSSES Net investment return Realized gains / (losses) in CHF bn 4.8% 4.6% 1.0% 0.7% 2.50 2.29 3.9% 3.8% (1.37) (1.79) 2004 2004 2003 2003 Realized gains / (losses) Realized gains Net current income Realized losses Slide 23
  • 25. NON-LIFE STRONG IMPROVEMENT IN UNDERLYING PERFORMANCE Net income in CHF m 206 1) 2) 198 1) 103 82 55 (177) 2) (374) 4Q04 2004 4Q03 1Q04 2Q04 3Q04 2003 1) Including an increase in the amount of CHF 59 m in the valuation of deferred tax assets on net operating losses created in prior years 2) Including a charge of CHF 242 m after tax related to the increase of the provision for contingencies relating to the sale of Winterthur International Slide 24
  • 26. NON-LIFE IMPROVED UNDERWRITING RESULT AND TARIFF- DRIVEN GROWTH Underwriting, acquisition and Combined ratio Net premiums earned administration expenses in % in CHF m in CHF m -2% 10,304 10,639 2,668 2,728 -1.7ppts 99.7 101.4 Underwriting and acquisition -1% Expense 26.5 25.1 expenses ratio +3% Claims Administration 74.9 74.6 ratio -4% expenses 2004 2004 2004 2003 2003 2003 Slide 25
  • 27. NON-LIFE HIGHER INVESTMENT INCOME DRIVEN BY LOWER REALIZED LOSSES Net investment return Realized gains / (losses) in CHF bn 4.5% 4.1% 1.0% 0.5% 0.60 0.56 3.6% 3.5% (0.33) (0.49) 2004 2004 2003 2003 Realized gains / (losses) Realized gains Net current income Realized losses Slide 26
  • 28. CAPITAL RATIOS REMAIN AT A HIGH LEVEL Risk-weighted assets 1) BIS tier 1 ratio 1) in CHF bn in % 16 202.6 203.6 199.2 Credit Suisse 190.8 201.2 Group 14 12.3% 12 Credit Suisse First Boston 10 12.1% 8 Credit Suisse 8.9% 6 4Q03 1Q04 2Q04 3Q04 4Q04 4Q03 1Q04 2Q04 3Q04 4Q04 Credit Suisse Credit Suisse 1) All calculations through December 31, 2003, First Boston Other are on the basis of Swiss GAAP Slide 27
  • 29. SHARE REPURCHASE PROGRAM AND DIVIDEND PROPOSAL S Ask Annual General Meeting for permission to repurchase shares up to CHF 6 bn over two years S Tier 1 target > 10% (including Basel II) in line with our performance goals communicated in December 2004 S Program to commence after the Annual General Meeting 2005 and to run for a maximum of two years S Registered shares bought back via second trading line will be cancelled S Return to competitive dividend policy with dividend of CHF 1.50 proposed for 2004 Slide 28
  • 30. OUTLOOK S Strategic plan announced in December 2004 to enable us to remain competitive in the face of a mixed market environment that is expected to continue in 2005 S Intention to become a fully integrated bank will allow the Group to continue to compete effectively by seizing growth opportunities and capturing revenue and cost synergies S First step to integration is the merger of the of the two legal bank entities in Switzerland, scheduled for the second quarter 2005 S Integration will enable us to better serve clients across multiple business lines and will facilitate the more efficient allocation of the Group’s capital Slide 29
  • 31. Slide 30
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