UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
UNDER THE SECURITIES EXCHANGE ACT OF 1934
July 31, 2018
Commission File Number 001-15244
CREDIT SUISSE GROUP AG
(Translation of registrant’s name into English)
Paradeplatz 8, CH 8001 Zurich, Switzerland
(Address of principal executive office)
(Address of principal executive office)
Commission File Number 001-33434
CREDIT SUISSE AG
(Translation of registrant’s name into English)
Paradeplatz 8, CH 8001 Zurich, Switzerland
(Address of principal executive office)
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or
Form 40-F.
Form 40-F.
Form 20-F 
Form 40-F 
Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
This report includes the media release and the slides for the presentation to investors in connection with the 2Q18 results.
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CREDIT SUISSE GROUP AG
Paradeplatz 8
P.O. Box
CH-8070 Zurich
Switzerland
Telephone +41 844 33 88 44
Fax +41 44 333 88 77
media.relations@credit-suisse.com
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2Q18 and 1H18 financial results
2Q18 adjusted* PTI +88% YoY to CHF 1.3 billion
Highest adjusted* PTI in 12 quarters
Continued client-led growth in Wealth Management: NNA of CHF 23.5 billion for 1H18
Seven successive quarters of positive operating leverage, with Group 2Q18 net revenues up 7% and adjusted* total operating expenses down 5% year on year
SRU already below end-2018 RWA1 and leverage exposure target levels
Group adjusted* pre-tax income of CHF 2.5 billion in 1H18, up 58% year on year; Group reported pre-tax income of CHF 2.1 billion, up 68% year on year
Wealth Management 1H18 NNA of CHF 23.5 billion; annualized NNA growth rate of 6%; record AuM of CHF 784 billion at higher profit margin
Global advisory and underwriting 2Q18 net revenues of USD 1.2 billion, up 14% year on year; IBCM net revenues up 23% in USD year on year
Global Markets 2Q18 continued discipline on capital and costs, and adjusted* total operating expenses down 2% in USD year on year. GM net revenues of USD 1.4 billion, down 8% year on year; ITS revenues show particular strength, up 25% year on year
Maintained strong capital ratios with look-through CET1 ratio of 12.8% and look-through Tier 1 leverage ratio of 5.2% at end-2Q18
Net income attributable to shareholders of CHF 647 million for 2Q18, up 114% year on year, and of CHF 1.3 billion for 1H18, up 49%
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Tidjane Thiam, Chief Executive Officer of Credit Suisse, said: “2Q18 was a period of continued strong performance as we achieved our highest adjusted* pre-tax income in the last 12 quarters and our seventh consecutive quarter of year-on-year profit growth.
The Group’s 2Q18 adjusted* profit increased 88% year on year, driven by strong revenue growth of 7%, and continued positive operating leverage supported by strict cost discipline. The compounding effect of these two factors quarter after quarter – growing revenues and reducing costs – has allowed us to significantly increase our profits cumulatively by CHF 4.4 billion since 4Q162.
Across Wealth Management, profit momentum increased significantly in 1H18. NNA flows remained strong at CHF 23.5 billion, driven mainly by UHNW clients. Annualised NNA growth rate was 6% on a record asset base at a higher profit margin – a clear indication of the power of our client franchises and our diversified business model across income streams and geographies.
We have continued to increase the collaboration between our Global Markets and Wealth Management divisions, while maintaining our strict capital, cost and risk discipline. We delivered a resilient revenue performance with continued strong momentum in International Trading Solutions (ITS) – our strategic initiative between GM and our wealth management focused divisions of SUB and IWM – as we continue to deliver institutional-quality solutions for our wealth management clients.
2Q18 global advisory and underwriting revenues benefited from the completion of several marquee M&A transactions, and we outperformed the Street across all key products in IBCM, led by advisory.
In the SRU, we have already achieved our end-2018 targets for both RWA1 and leverage exposure, marking a significant milestone in our efforts to deal effectively with legacy issues at the bank.
For the remainder of 2018, we will continue to focus on growing our wealth management franchise and completing the last two quarters of our restructuring successfully.
Looking to 2019 and beyond, we will continue to deliver improved profitability, higher returns and growing shareholder value.”
Outlook
The outlook for global economic growth in 2H18 remains positive. However, geopolitical developments and growing tensions surrounding global trade, as well as the impact of monetary policy changes by central banks, are likely to trigger periods of heightened uncertainty through the remainder of 2018. That uncertainty has, over time, the potential to negatively affect confidence, which in turn could impact a wide range of asset classes and activities, relevant for our more market-dependent activities.
Looking at the rest of the year, we believe that the growth potential of our Wealth Management-related businesses of Switzerland, Asia Pacific and International Wealth Management remains intact and we expect them to continue to benefit from broad-based, client-led growth in 2H18 as we support our clients and allocate capital to our highest returning business opportunities.
The progress we have made – 10 quarters into the implementation of our restructuring – combined with a number of decisions and actions that are under our control, leave us on track to achieve our 10-11% Group RoTE 2019 target.
2
Group highlights
• 1H18 Group reported net revenues of CHF 11.2 billion, up 5% year on year (2Q18: CHF 5.6 billion, up 7% year on year)
• 1H18 Group adjusted* net revenues of CHF 11.2 billion, up 4% year on year (2Q18: CHF 5.6 billion, up 7% year on year)
• 1H18 Group reported total operating expenses of CHF 9 billion, down 4% year on year (2Q18: CHF 4.5 billion, down 2% year on year)
• 1H18 adjusted* total operating expenses of CHF 8.5 billion, down 5% year on year (2Q18: CHF 4.2 billion, down 5% year on year)
• 1H18 Group reported pre-tax income of CHF 2.1 billion, up 68% year on year (2Q18: CHF 1.1 billion, up 81% year on year)
• 1H18 Group adjusted* pre-tax income of CHF 2.5 billion, up 58% year on year (2Q18: CHF 1.3 billion, up 88% year on year)
Divisional summaries
All comparisons are provided on a year-on-year basis unless specified otherwise.
In 2Q18, Swiss Universal Bank (SUB) delivered its 10th consecutive quarter of year-on-year adjusted* profit growth and its highest quarterly adjusted* profit since 2013. Adjusted* pre-tax income reached CHF 580 million, reflecting continued positive operating leverage on the back of solid revenue performance and rigorous cost discipline across both businesses. Adjusted* return on regulatory capital was 19%, up 3 percentage points. In 1H18, adjusted* pre-tax income for the division rose 15% to CHF 1.1 billion, reflecting further profit acceleration compared to the prior-year period.
We were recognized as the ‘Best Bank in Switzerland’ and ‘Best Investment Bank in Switzerland’ for 2018 by Euromoney3.
In Private Clients, we saw continued good momentum in 2Q18 with our UHNW, HNW and Entrepreneur clients businesses, which drove a 28% increase in adjusted* pre-tax income. 1H18 adjusted* pre-tax income rose 29%. NNA totaled CHF 0.5 billion for 2Q18, and CHF 3.2 billion for 1H18, representing an annualized NNA growth rate of 3% for 1H18.
Corporate & Institutional Clients continued to generate solid results in both 2Q18 and 1H18, with adjusted* pre-tax income up 5% and 4%, respectively.
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In 2Q18, International Wealth Management (IWM) delivered another excellent performance, reflecting continued positive operating leverage from revenue growth and stable adjusted* costs across both businesses. Adjusted* pre-tax income was CHF 461 million and adjusted* return on regulatory capital was 34%. NNA totaled CHF 13.2 billion. In 1H18, adjusted* pre-tax income rose 33% to CHF 935 million. NNA totaled CHF 27.7 billion.
Euromoney3 named Credit Suisse ‘Best Bank for Wealth Management 2018’ in every region served by IWM – Western Europe, Central and Eastern Europe, the Middle East and Latin America.
Private Banking adjusted* pre-tax income rose 21% in 2Q18 on the back of increases across all major revenue categories. 1H18 adjusted* pre-tax income increased 33% to CHF 754 million. Mandate penetration grew to 33%, with net mandate sales rising to over CHF 10 billion as we continued to successfully implement our House View. 1H18 NNA totaled CHF 10.7 billion, corresponding to annualized growth of 6%, with Europe and emerging markets achieving equally strong growth rates.
In Asset Management, we benefited from higher recurring revenues with a 10% increase in management fees in 2Q18 and 1H18, both at stable recurring margins of 32 basis points. Adjusted* pre-tax income grew 25% in 2Q18 and 33% in 1H18. 1H18 NNA totaled CHF 17 billion, driven by broad-based inflows across a number of flagship strategies and by successful product launches across traditional and alternative investments.
In 2Q18, Asia Pacific (APAC) delivered solid results with adjusted* pre-tax income up 34% to CHF 266 million, despite challenging conditions – particularly in China, which saw lower equity markets and selective deleveraging by clients. 1H18 adjusted* pre-tax income rose 52%, with strong profitable growth in our Wealth Management & Connected (WM&C) business and significantly improved performance in our Markets business. This resulted in a 6 percentage point increase in adjusted* return on regulatory capital to 20% for the division.
We were named ‘Best Private Bank’ in APAC by Asian Investor4 and, for the first time, ‘Asia’s Best Investment Bank’ by Euromoney3.
APAC WM&C adjusted* pre-tax income was CHF 208 million in 2Q18 and adjusted* return on regulatory capital was 27%. NNA totaled CHF 3.4 billion. 1H18 adjusted* pre-tax income was CHF 464 million and adjusted* return on regulatory capital was 31%. Recurring commissions and fees rose to record levels and drove 6% growth in Private Banking net revenues. 1H18 NNA totaled CHF 9.6 billion on record AuM of CHF 206 billion, passing the CHF 200 billion mark for the first time. We continued to benefit from our integrated client offering, bringing together wealth management and investment banking activities with a focus on our target Entrepreneur clients, with M&A and equity underwriting revenues rising 84% in 1H18. APAC advisory and underwriting maintained its top 2 ranking in terms of share of wallet5.
Our APAC Markets business significantly improved its profitability, delivering adjusted* pre-tax income of USD 60 million in 2Q18 and USD 94 million in 1H18, compared to adjusted* pre-tax income of USD 1 million in 2Q17 and an adjusted* pre-tax loss of USD 38 million in 1H17.
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In 2Q18, Global Markets (GM) maintained its strict capital, cost and risk discipline. GM reduced its leverage exposure – its main capital constraint – by 7% year on year. In that context, revenues were resilient in a challenging quarter and adjusted* total operating expenses were 2% lower in USD. We continued to invest in Equities6 and in strengthening our ITS capabilities to more effectively deliver our full suite of capabilities to our wealth management clients. Adjusted* pre-tax income was USD 206 million. In 1H18, adjusted* pre-tax income was USD 563 million and we generated an adjusted* return on regulatory capital of 8%. Growth in Equities6 revenues was driven primarily by equity derivatives as we benefited from investments in the business, a rebound in volatility and increased collaboration in ITS. Fixed Income6 revenues were lower due to a decrease in securitized products revenues compared to a particularly strong prior-year period as well as lower debt underwriting issuance activity, partially offset by higher trading revenues. We maintained our leading market share7 in our asset finance and leveraged finance underwriting franchises despite the industry-wide decline in underwriting volumes8.
In 2Q18, Investment Banking & Capital Markets (IBCM) delivered a 53% increase in adjusted* pre-tax income to USD 141 million and revenue growth of 23%. In addition to our strength in the Americas, we maintained our momentum in EMEA, where we gained market share in 2Q18. We ranked in the top 58 in both global ECM and Leveraged Finance. Adjusted* return on regulatory capital was 18% in 2Q18 and 15% in 1H18.
1H18 net revenues in global advisory and underwriting rose 5% to USD 2.3 billion, significantly outperforming the Street8.
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For further information
Adam Gishen, Investor Relations, Credit Suisse
Tel: +41 44 333 71 49
e-mail: investor.relations@credit-suisse.com
Tel: +41 44 333 71 49
e-mail: investor.relations@credit-suisse.com
Amy Rajendran, Media Relations, Credit Suisse
Tel: +41 844 33 88 44
e-mail: media.relations@credit-suisse.com
Tel: +41 844 33 88 44
e-mail: media.relations@credit-suisse.com
The complete 2Q18 Financial Report and Results Presentation Slides are available for download from 07:00 CEST today at: https://www.credit-suisse.com/results.
Presentation of 2Q18 results – Tuesday, 31 July 2018
| Event | Analyst Call | Media Conference Call | |||
| Time |
08:15 Zurich 07:15 London 02:15 New York |
10:15 Zurich 09:15 London 04:15 New York |
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| Speakers |
Tidjane Thiam, Chief Executive Officer David Mathers, Chief Financial Officer |
Tidjane Thiam, Chief Executive Officer David Mathers, Chief Financial Officer |
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| Language |
The presentation will be held in English. |
The presentation will be held in English. Simultaneous interpreting in German will be available. |
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Access via Telephone |
+41 44 580 40 01 (Switzerland) +44 1452 565 510 (Europe) +1 866 389 9771 (US) Reference: Credit Suisse Analysts and Investors call or meeting ID: 1597206 Please dial in 15 minutes before the start of the presentation. |
+41 44 580 40 01 (Switzerland) +44 1452 565 510 (Europe) +1 866 389 9771 (US) Reference: Credit Suisse Group quarterly results Please dial in 10 minutes before the start of the presentation. |
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| Q&A Session |
Opportunity to ask questions via the telephone conference. |
Following the presentation, you will have the opportunity to ask the speakers questions. |
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| Playback |
Replay available approximately one hour after the event: +41 44 580 40 26 (Switzerland) +44 3333 00 97 85 (Europe) +1 917 677 75 32 (US) Conference ID: 1597206# |
Replay available approximately one hour after the event: +41 44 580 40 26 (Switzerland) +44 3333 00 97 85 (Europe) +1 917 677 75 32 (US) Conference ID English: 8497606# Conference ID German: 1248555# |
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The results of Credit Suisse Group comprise the results of our six reporting segments, including the Strategic Resolution Unit, and the Corporate Center. Core results exclude revenues and expenses from our Strategic Resolution Unit.
As we move ahead with the implementation of our strategy, it is important to measure the progress achieved by our underlying business performance in a consistent manner. To achieve this, we will focus our analyses on adjusted results.
Adjusted results referred to in this Media Release are non-GAAP financial measures that exclude goodwill impairment and certain other revenues and expenses included in our reported results. Management believes that adjusted results provide a useful presentation of our operating results for the purposes of assessing our Group and divisional performance consistently over time, on a basis that excludes items that management does not consider representative of our underlying performance. We will report quarterly on the same adjusted* basis for the Group, Core and divisional results until end-2018 to allow investors to monitor our progress in implementing our strategy, given the material restructuring charges we are likely to incur and other items which are not reflective of our underlying performance but are to be borne in the interim period. Tables in the Appendix of this Media Release provide the detailed reconciliation between reported and adjusted results for the Group, Core businesses and the individual divisions.
Footnotes
* Refers to adjusted results. Adjusted results are non-GAAP financial measures. For a reconciliation of the adjusted results to the most directly comparable US GAAP measures, see the Appendix of this Media Release.
1 Excluding operational risk of CHF 19 billion in 1H15 and CHF 11 billion in 1H18.
2 Refers to the cumulative total of year over year increases for quarterly adjusted* pre-tax income.
3 Source: Euromoney as of July 11, 2018.
4 Source: Asian Investor as of April 10, 2018.
5 Source: Dealogic as of June 30, 2018, for Asia Pacific ex-Japan and ex-China onshore.
6 Includes sales and trading and underwriting.
7 Source: Thomson Reuters / IFRS as per June 30, 2018.
8 Source: Dealogic as per June 30, 2018.
Abbreviations
APAC – Asia Pacific; AuM – assets under management; CHF – Swiss francs; CET1 – common equity tier 1; ECM – equity capital markets; EMEA – Europe, Middle East and Africa; FINMA – Swiss Financial Market Supervisory Authority; FX – foreign exchange; GM – Global Markets; HNW – high-net-worth; IBCM – Investment Banking & Capital Markets; ITS – International Trading Solutions; IWM – International Wealth Management; M&A – mergers and acquisitions; NNA – net new assets; PB – Private Banking; PC – Private Clients; PTI – pre-tax income; RoTE – return on tangible equity; RWA – risk-weighted assets; SEC – Securities and Exchange Commission; SRU – Strategic Resolution Unit; SUB – Swiss Universal Bank; UHNW – ultra-high-net-worth; USD – US dollars; US GAAP – US generally accepted accounting principles; WM&C – Wealth Management & Connected
Important information
This Media Release contains select information from the full 2Q18 Financial Report and 2Q18 Results Presentation Slides that Credit Suisse believes is of particular interest to media professionals. The complete 2Q18 Financial Report and 2Q18 Results Presentation Slides, which have been distributed simultaneously, contain more comprehensive information about our results and operations for the reporting quarter, as well as important information about our reporting methodology and some of the terms used in these documents. The complete 2Q18 Financial Report and 2Q18 Results Presentation Slides are not incorporated by reference into this Media Release.
Information referenced in this Media Release, whether via website links or otherwise, is not incorporated into this Media Release.
Our cost savings program is measured using adjusted operating cost base at constant FX rates. “Adjusted operating cost base at constant FX rates” includes adjustments as made in all our disclosures for restructuring expenses, major litigation expenses and a goodwill impairment taken in 4Q15 as well as adjustments for debit valuation adjustments (DVA) related volatility, FX and for certain accounting changes (which had not been in place at the launch of the cost savings program). Adjustments for certain accounting changes have been restated to reflect grossed up expenses in the Corporate Center and, starting in 1Q18, also include adjustments for changes from ASU 2014-09 “Revenue from Contracts with Customers”, which is described further in our 1Q18 and 2Q18 Financial Reports. Adjustments for FX apply unweighted currency exchange rates, i.e., a straight line average of monthly rates, consistently for the periods under review.
Regulatory capital is calculated as the worst of 10% of RWA and 3.5% of leverage exposure. Return on regulatory capital is calculated using (adjusted) income/(loss) after tax and assumes a tax rate of 30% and capital allocated based on the worst of 10% of average RWA and 3.5% of average leverage exposure. For the Markets business within the APAC division and for the Global Markets and Investment Banking & Capital Markets divisions, return on regulatory capital is based on US dollar denominated numbers. Adjusted return on regulatory capital is calculated using adjusted results, applying the same methodology to calculate return on regulatory capital.
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Return on tangible equity attributable to shareholders, a non-GAAP financial measure, is based on tangible equity attributable to shareholders, which is calculated by deducting goodwill and other intangible assets from total equity attributable to shareholders as presented in our balance sheet. Management believes that the return on tangible equity attributable to shareholders is meaningful as it allows consistent measurement of the performance of businesses without regard to whether the businesses were acquired. For end-2Q18, 1Q18, 2Q17 and 2Q16, tangible equity excluded goodwill of CHF 4,797 million, CHF 4,667 million, CHF 4,673 million and CHF 4,745 million, respectively, and other intangible assets of CHF 212 million, CHF 212 million, CHF 195 million and CHF 191 million, respectively from total equity attributable to shareholders of CHF 43,470 million, CHF 42,540 million, CHF 43,493 million and CHF 44,962 million, respectively, as presented in our balance sheet.
We may not achieve all of the expected benefits of our strategic initiatives. Factors beyond our control, including but not limited to the market and economic conditions, changes in laws, rules or regulations and other challenges discussed in our public filings, could limit our ability to achieve some or all of the expected benefits of these initiatives.
In particular, the terms “Estimate”, “Illustrative”, “Ambition”, “Objective”, “Outlook” and “Goal” are not intended to be viewed as targets or projections, nor are they considered to be Key Performance Indicators. All such estimates, illustrations, ambitions, objectives, outlooks and goals are subject to a large number of inherent risks, assumptions and uncertainties, many of which are completely outside of our control. These risks, assumptions and uncertainties include, but are not limited to, general market conditions, market volatility, interest rate volatility and levels, global and regional economic conditions, political uncertainty, changes in tax policies, regulatory changes, changes in levels of client activity as a result of any of the foregoing and other factors. Accordingly, this information should not be relied on for any purpose. We do not intend to update these estimates, illustrations, ambitions, objectives, outlooks or goals.
In preparing this media release, management has made estimates and assumptions that affect the numbers presented. Actual results may differ. Annualized numbers do not take into account variations in operating results, seasonality and other factors and may not be indicative of actual, full-year results. Figures throughout this media release may also be subject to rounding adjustments. All opinions and views constitute judgments as of the date of writing without regard to the date on which the reader may receive or access the information. This information is subject to change at any time without notice and we do not intend to update this information.
As of January 1, 2013, Basel III was implemented in Switzerland along with the Swiss “Too Big to Fail” legislation and regulations thereunder (in each case, subject to certain phase-in periods). As of January 1, 2015, the Bank for International Settlements (BIS) leverage ratio framework, as issued by the Basel Committee on Banking Supervision (BCBS), was implemented in Switzerland by FINMA. Our related disclosures are in accordance with our interpretation of such requirements, including relevant assumptions. Changes in the interpretation of these requirements in Switzerland or in any of our assumptions or estimates could result in different numbers from those shown in this media release.
Unless otherwise noted, leverage exposure is based on the BIS leverage ratio framework and consists of period-end balance sheet assets and prescribed regulatory adjustments. The look-through tier 1 leverage ratio and CET1 leverage ratio are calculated as look-through BIS tier 1 capital and CET1 capital, respectively, divided by period end leverage exposure. Swiss leverage ratios are measured on the same period-end basis as the leverage exposure for the BIS leverage ratio.
Margin calculations for APAC are aligned with the performance metrics of the Private Banking business and its related assets under management within the WM&C business in APAC. Assets under management and net new assets for APAC relate to the Private Banking business within the Wealth Management & Connected business.
Gross margin is calculated by dividing net revenues by average assets under management. Net margin is calculated by dividing income before taxes by average assets under management. Adjusted margins are calculated using adjusted results, applying the same methodology to calculate gross and net margin.
Mandate penetration reflects advisory and discretionary mandates volumes as a percentage of assets under management, excluding those from the external asset manager business.
References to Wealth Management mean SUB PC, IWM PB and APAC PB within WM&C or their combined results. References to Wealth Management-related mean SUB, IWM and APAC WM&C or their combined results. References to global advisory and underwriting include global revenues from advisory, debt and equity underwriting generated across all divisions before cross-divisional revenue sharing agreements.
Generic references to profit and costs in this media release refer to pre-tax income and operating expenses, respectively.
Investors and others should note that we announce material information (including quarterly earnings releases and financial reports) to the investing public using press releases, SEC and Swiss ad hoc filings, our website and public conference calls and webcasts. We intend to also use our Twitter account @creditsuisse (https://twitter.com/creditsuisse) to excerpt key messages from our public disclosures, including earnings releases. We may retweet such messages through certain of our regional Twitter accounts, including @csschweiz (https://twitter.com/csschweiz) and @csapac (https://twitter.com/csapac). Investors and others should take care to consider such abbreviated messages in the context of the disclosures from which they are excerpted. The information we post on these Twitter accounts is not a part of this Media Release.
In various tables, use of “–” indicates not meaningful or not applicable.
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Appendix
| Key metrics | |||||||||||||||||
| in / end of | % change | in / end of | % change | ||||||||||||||
| 2Q18 | 1Q18 | 2Q17 | QoQ | YoY | 6M18 | 6M17 | YoY | ||||||||||
| Credit Suisse Group results (CHF million) | |||||||||||||||||
| Net revenues | 5,595 | 5,636 | 5,205 | (1) | 7 | 11,231 | 10,739 | 5 | |||||||||
| Provision for credit losses | 73 | 48 | 82 | 52 | (11) | 121 | 135 | (10) | |||||||||
| Total operating expenses | 4,470 | 4,534 | 4,541 | (1) | (2) | 9,004 | 9,352 | (4) | |||||||||
| Income before taxes | 1,052 | 1,054 | 582 | 0 | 81 | 2,106 | 1,252 | 68 | |||||||||
| Net income attributable to shareholders | 647 | 694 | 303 | (7) | 114 | 1,341 | 899 | 49 | |||||||||
| Assets under management and net new assets (CHF million) | |||||||||||||||||
| Assets under management | 1,398.4 | 1,379.6 | 1,307.3 | 1.4 | 7.0 | 1,398.4 | 1,307.3 | 7.0 | |||||||||
| Net new assets | 15.4 | 25.1 | 12.1 | (38.6) | 27.3 | 40.5 | 36.5 | 11.0 | |||||||||
| Basel III regulatory capital and leverage statistics | |||||||||||||||||
| CET1 ratio (%) | 12.8 | 12.9 | 14.2 | – | – | 12.8 | 14.2 | – | |||||||||
| Look-through CET1 ratio (%) | 12.8 | 12.9 | 13.3 | – | – | 12.8 | 13.3 | – | |||||||||
| Look-through CET1 leverage ratio (%) | 3.9 | 3.8 | 3.8 | – | – | 3.9 | 3.8 | – | |||||||||
| Look-through tier 1 leverage ratio (%) | 5.2 | 5.1 | 5.2 | – | – | 5.2 | 5.2 | – | |||||||||
A-1
| Credit Suisse and Core Results | |||||||||||||||||||
| Core Results | Strategic Resolution Unit | Credit Suisse | |||||||||||||||||
| in / end of | 2Q18 | 1Q18 | 2Q17 | 2Q18 | 1Q18 | 2Q17 | 2Q18 | 1Q18 | 2Q17 | ||||||||||
| Statements of operations (CHF million) | |||||||||||||||||||
| Net revenues | 5,771 | 5,839 | 5,479 | (176) | (203) | (274) | 5,595 | 5,636 | 5,205 | ||||||||||
| Provision for credit losses | 74 | 48 | 69 | (1) | 0 | 13 | 73 | 48 | 82 | ||||||||||
| Compensation and benefits | 2,476 | 2,473 | 2,501 | 71 | 65 | 94 | 2,547 | 2,538 | 2,595 | ||||||||||
| General and administrative expenses | 1,313 | 1,382 | 1,363 | 107 | 126 | 164 | 1,420 | 1,508 | 1,527 | ||||||||||
| Commission expenses | 326 | 340 | 343 | 2 | 4 | 7 | 328 | 344 | 350 | ||||||||||
| Restructuring expenses | 162 | 133 | 58 | 13 | 11 | 11 | 175 | 144 | 69 | ||||||||||
| Total other operating expenses | 1,801 | 1,855 | 1,764 | 122 | 141 | 182 | 1,923 | 1,996 | 1,946 | ||||||||||
| Total operating expenses | 4,277 | 4,328 | 4,265 | 193 | 206 | 276 | 4,470 | 4,534 | 4,541 | ||||||||||
| Income/(loss) before taxes | 1,420 | 1,463 | 1,145 | (368) | (409) | (563) | 1,052 | 1,054 | 582 | ||||||||||
| Statement of operations metrics (%) | |||||||||||||||||||
| Return on regulatory capital | 12.8 | 13.4 | 10.9 | – | – | – | 9.1 | 9.1 | 5.1 | ||||||||||
| Balance sheet statistics (CHF million) | |||||||||||||||||||
| Total assets | 770,719 | 778,889 | 728,984 | 27,439 | 30,163 | 54,427 | 798,158 | 809,052 | 783,411 | ||||||||||
| Risk-weighted assets 1 | 256,677 | 248,776 | 221,236 | 20,448 | 22,239 | 38,101 | 277,125 | 271,015 | 259,337 | ||||||||||
| Leverage exposure 1 | 881,310 | 888,903 | 834,583 | 38,692 | 43,168 | 71,611 | 920,002 | 932,071 | 906,194 | ||||||||||
| Credit Suisse and Core Results | |||||||||||||
| Core Results | Strategic Resolution Unit | Credit Suisse | |||||||||||
| in / end of | 6M18 | 6M17 | 6M18 | 6M17 | 6M18 | 6M17 | |||||||
| Statements of operations (CHF million) | |||||||||||||
| Net revenues | 11,610 | 11,219 | (379) | (480) | 11,231 | 10,739 | |||||||
| Provision for credit losses | 122 | 98 | (1) | 37 | 121 | 135 | |||||||
| Compensation and benefits | 4,949 | 5,118 | 136 | 182 | 5,085 | 5,300 | |||||||
| General and administrative expenses | 2,695 | 2,757 | 233 | 371 | 2,928 | 3,128 | |||||||
| Commission expenses | 666 | 704 | 6 | 14 | 672 | 718 | |||||||
| Restructuring expenses | 295 | 188 | 24 | 18 | 319 | 206 | |||||||
| Total other operating expenses | 3,656 | 3,649 | 263 | 403 | 3,919 | 4,052 | |||||||
| Total operating expenses | 8,605 | 8,767 | 399 | 585 | 9,004 | 9,352 | |||||||
| Income/(loss) before taxes | 2,883 | 2,354 | (777) | (1,102) | 2,106 | 1,252 | |||||||
| Statement of operations metrics (%) | |||||||||||||
| Return on regulatory capital | 13.2 | 11.1 | – | – | 9.1 | 5.4 | |||||||
|
1
Disclosed on a look-through basis.
|
|||||||||||||
A-2
Adjusted results referred to in this media release are non-GAAP financial measures that exclude goodwill impairment and certain other revenues and expenses included in our reported results. Management believes that adjusted results provide a useful presentation of our operating results for purposes of assessing our Group and divisional performance over time, on a basis that excludes items that management does not consider representative of our underlying performance. Provided below is a reconciliation of our adjusted results to the most directly comparable US GAAP measures.
| Reconciliation of adjusted results | |||||||||||||||||||
| Core Results | Strategic Resolution Unit | Credit Suisse | |||||||||||||||||
| in | 2Q18 | 1Q18 | 2Q17 | 2Q18 | 1Q18 | 2Q17 | 2Q18 | 1Q18 | 2Q17 | ||||||||||
| Reconciliation of adjusted results (CHF million, except where indicated) | |||||||||||||||||||
| Net revenues | 5,771 | 5,839 | 5,479 | (176) | (203) | (274) | 5,595 | 5,636 | 5,205 | ||||||||||
| Real estate gains | 0 | 0 | 0 | 0 | (1) | 0 | 0 | (1) | 0 | ||||||||||
| (Gains)/losses on business sales | 0 | (73) | 0 | 0 | 0 | 0 | 0 | (73) | 0 | ||||||||||
| Adjusted net revenues | 5,771 | 5,766 | 5,479 | (176) | (204) | (274) | 5,595 | 5,562 | 5,205 | ||||||||||
| Provision for credit losses | 74 | 48 | 69 | (1) | 0 | 13 | 73 | 48 | 82 | ||||||||||
| Total operating expenses | 4,277 | 4,328 | 4,265 | 193 | 206 | 276 | 4,470 | 4,534 | 4,541 | ||||||||||
| Restructuring expenses | (162) | (133) | (58) | (13) | (11) | (11) | (175) | (144) | (69) | ||||||||||
| Major litigation provisions | (29) | (48) | (12) | (26) | (37) | (21) | (55) | (85) | (33) | ||||||||||
| Expenses related to business sales | 0 | 0 | 0 | (1) | 0 | 0 | (1) | 0 | 0 | ||||||||||
| Adjusted total operating expenses | 4,086 | 4,147 | 4,195 | 153 | 158 | 244 | 4,239 | 4,305 | 4,439 | ||||||||||
| Income/(loss) before taxes | 1,420 | 1,463 | 1,145 | (368) | (409) | (563) | 1,052 | 1,054 | 582 | ||||||||||
| Total adjustments | 191 | 108 | 70 | 40 | 47 | 32 | 231 | 155 | 102 | ||||||||||
| Adjusted income/(loss) before taxes | 1,611 | 1,571 | 1,215 | (328) | (362) | (531) | 1,283 | 1,209 | 684 | ||||||||||
| Adjusted return on regulatory capital (%) | 14.6 | 14.4 | 11.5 | – | – | – | 11.1 | 10.5 | 5.9 | ||||||||||
| Core Results | Strategic Resolution Unit | Credit Suisse | |||||||||||
| in | 6M18 | 6M17 | 6M18 | 6M17 | 6M18 | 6M17 | |||||||
| Reconciliation of adjusted results (CHF million, except where indicated) | |||||||||||||
| Net revenues | 11,610 | 11,219 | (379) | (480) | 11,231 | 10,739 | |||||||
| Real estate gains | 0 | 0 | (1) | 0 | (1) | 0 | |||||||
| (Gains)/losses on business sales | (73) | 23 | 0 | (38) | (73) | (15) | |||||||
| Adjusted net revenues | 11,537 | 11,242 | (380) | (518) | 11,157 | 10,724 | |||||||
| Provision for credit losses | 122 | 98 | (1) | 37 | 121 | 135 | |||||||
| Total operating expenses | 8,605 | 8,767 | 399 | 585 | 9,004 | 9,352 | |||||||
| Restructuring expenses | (295) | (188) | (24) | (18) | (319) | (206) | |||||||
| Major litigation provisions | (77) | (39) | (63) | (91) | (140) | (130) | |||||||
| Expenses related to business sales | 0 | 0 | (1) | 0 | (1) | 0 | |||||||
| Adjusted total operating expenses | 8,233 | 8,540 | 311 | 476 | 8,544 | 9,016 | |||||||
| Income/(loss) before taxes | 2,883 | 2,354 | (777) | (1,102) | 2,106 | 1,252 | |||||||
| Total adjustments | 299 | 250 | 87 | 71 | 386 | 321 | |||||||
| Adjusted income/(loss) before taxes | 3,182 | 2,604 | (690) | (1,031) | 2,492 | 1,573 | |||||||
| Adjusted return on regulatory capital (%) | 14.5 | 12.3 | – | – | 10.8 | 6.7 | |||||||
|
Adjusted return on regulatory capital is calculated using adjusted results, applying the same methodology used to calculate return on regulatory capital.
|
|||||||||||||
A-3
| Reconciliation of adjusted results | |||||||||||||||||||
| Credit Suisse | |||||||||||||||||||
| in | 4Q17 | 3Q17 | 2Q17 | 1Q17 | 4Q16 | 3Q16 | 2Q16 | 1Q16 | 4Q15 | ||||||||||
| Reconciliation of adjusted results (CHF million, except where indicated) | |||||||||||||||||||
| Net revenues | 5,189 | 4,972 | 5,205 | 5,534 | 5,181 | 5,396 | 5,108 | 4,638 | 4,210 | ||||||||||
| Fair value on own debt | – | – | – | – | – | – | – | – | 697 | ||||||||||
| Real estate gains | 0 | 0 | 0 | 0 | (78) | (346) | 0 | 0 | (72) | ||||||||||
| (Gains)/losses on business sales | 28 | 0 | 0 | (15) | 2 | 0 | 0 | 56 | (34) | ||||||||||
| Adjusted net revenues | 5,217 | 4,972 | 5,205 | 5,519 | 5,105 | 5,050 | 5,108 | 4,694 | 4,801 | ||||||||||
| Provision for credit losses | 43 | 32 | 82 | 53 | 75 | 55 | (28) | 150 | 133 | ||||||||||
| Total operating expenses | 5,005 | 4,540 | 4,541 | 4,811 | 7,309 | 5,119 | 4,937 | 4,972 | 10,518 | ||||||||||
| Goodwill impairment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (3,797) | ||||||||||
| Restructuring expenses | (137) | (112) | (69) | (137) | (49) | (145) | (91) | (255) | (355) | ||||||||||
| Major litigation provisions | (255) | (108) | (33) | (97) | (2,401) | (306) | 0 | 0 | (564) | ||||||||||
| Expenses related to business sales | (8) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||
| Adjusted total operating expenses | 4,605 | 4,320 | 4,439 | 4,577 | 4,859 | 4,668 | 4,846 | 4,717 | 5,802 | ||||||||||
| Income/(loss) before taxe | 141 | 400 | 582 | 670 | (2,203) | 222 | 199 | (484) | (6,441) | ||||||||||
| Total adjustments | 428 | 220 | 102 | 219 | 2,374 | 105 | 91 | 311 | 5,307 | ||||||||||
| Adjusted income/(loss) before taxes | 569 | 620 | 684 | 889 | 171 | 327 | 290 | (173) | (1,134) | ||||||||||
| Reconciliation of adjusted results | |||||||||
| SUB, IWM, and APAC WM&C | |||||||||
| in | 6M18 | 6M17 | 6M16 | 6M15 | 1 | ||||
| Adjusted results (CHF million) | |||||||||
| Net revenues | 6,824 | 6,392 | 5,874 | 5,789 | |||||
| Real estate gains | 0 | 0 | 0 | (23) | |||||
| (Gains)/losses on business sales | (73) | 0 | 0 | 0 | |||||
| Adjusted net revenues | 6,751 | 6,392 | 5,874 | 5,766 | |||||
| Provision for credit losses | 88 | 59 | 13 | 65 | |||||
| Total operating expenses | 4,330 | 4,374 | 4,199 | 4,083 | |||||
| Restructuring expenses | (123) | (97) | (69) | – | |||||
| Major litigation provisions | (77) | (39) | 0 | 10 | |||||
| Adjusted total operating expenses | 4,130 | 4,238 | 4,130 | 4,093 | |||||
| Income before taxes | 2,406 | 1,959 | 1,662 | 1,641 | |||||
| Total adjustments | 127 | 136 | 69 | (33) | |||||
| Adjusted income before taxes | 2,533 | 2,095 | 1,731 | 1,608 | |||||
|
1
Excludes net revenues and total operating expenses for Swisscard of CHF 148 million and CHF 123 million, respectively.
|
|||||||||
A-4
| Swiss Universal Bank | |||||||||||||||||
| in / end of | % change | in / end of % change | |||||||||||||||
| 2Q18 | 1Q18 | 2Q17 | QoQ | YoY | 6M18 | 6M17 | YoY | ||||||||||
| Results (CHF million) | |||||||||||||||||
| Net revenues | 1,419 | 1,431 | 1,405 | (1) | 1 | 2,850 | 2,759 | 3 | |||||||||
| of which Private Clients | 757 | 762 | 733 | (1) | 3 | 1,519 | 1,444 | 5 | |||||||||
| of which Corporate & Institutional Clients | 662 | 669 | 672 | (1) | (1) | 1,331 | 1,315 | 1 | |||||||||
| Provision for credit losses | 35 | 34 | 36 | 3 | (3) | 69 | 46 | 50 | |||||||||
| Total operating expenses | 831 | 834 | 867 | 0 | (4) | 1,665 | 1,807 | (8) | |||||||||
| Income before taxes | 553 | 563 | 502 | (2) | 10 | 1,116 | 906 | 23 | |||||||||
| of which Private Clients | 268 | 265 | 222 | 1 | 21 | 533 | 383 | 39 | |||||||||
| of which Corporate & Institutional Clients | 285 | 298 | 280 | (4) | 2 | 583 | 523 | 11 | |||||||||
| Metrics (%) | |||||||||||||||||
| Return on regulatory capital | 17.7 | 17.9 | 15.5 | – | – | 17.7 | 14.1 | – | |||||||||
| Cost/income ratio | 58.6 | 58.3 | 61.7 | – | – | 58.4 | 65.5 | – | |||||||||
| Private Clients | |||||||||||||||||
| Assets under management (CHF billion) | 207.9 | 206.7 | 201.5 | 0.6 | 3.2 | 207.9 | 201.5 | 3.2 | |||||||||
| Net new assets (CHF billion) | 0.5 | 2.7 | 1.7 | – | – | 3.2 | 3.7 | – | |||||||||
| Gross margin (annualized) (bp) | 145 | 147 | 146 | – | – | 146 | 146 | – | |||||||||
| Net margin (annualized) (bp) | 51 | 51 | 44 | – | – | 51 | 39 | – | |||||||||
| Corporate & Institutional Clients | |||||||||||||||||
| Assets under management (CHF billion) | 355.8 | 352.0 | 352.5 | 1.1 | 0.9 | 355.8 | 352.5 | 0.9 | |||||||||
| Net new assets (CHF billion) | 0.9 | 3.8 | 0.0 | – | – | 4.7 | 0.0 | – | |||||||||
A-5
| Reconciliation of adjusted results | |||||||||||||||||||
| Private Clients | Corporate & Institutional Clients | Swiss Universal Bank | |||||||||||||||||
| in | 2Q18 | 1Q18 | 2Q17 | 2Q18 | 1Q18 | 2Q17 | 2Q18 | 1Q18 | 2Q17 | ||||||||||
| Adjusted results (CHF million, except where indicated) | |||||||||||||||||||
| Net revenues | 757 | 762 | 733 | 662 | 669 | 672 | 1,419 | 1,431 | 1,405 | ||||||||||
| Gains on business sales | 0 | (19) | 0 | 0 | (18) | 0 | 0 | (37) | 0 | ||||||||||
| Adjusted net revenues | 757 | 743 | 733 | 662 | 651 | 672 | 1,419 | 1,394 | 1,405 | ||||||||||
| Provision for credit losses | 11 | 10 | 11 | 24 | 24 | 25 | 35 | 34 | 36 | ||||||||||
| Total operating expenses | 478 | 487 | 500 | 353 | 347 | 367 | 831 | 834 | 867 | ||||||||||
| Restructuring expenses | (17) | (22) | 2 | (10) | (6) | 2 | (27) | (28) | 4 | ||||||||||
| Major litigation provisions | 0 | 0 | (2) | 0 | 0 | (4) | 0 | 0 | (6) | ||||||||||
| Adjusted total operating expenses | 461 | 465 | 500 | 343 | 341 | 365 | 804 | 806 | 865 | ||||||||||
| Income before taxes | 268 | 265 | 222 | 285 | 298 | 280 | 553 | 563 | 502 | ||||||||||
| Total adjustments | 17 | 3 | 0 | 10 | (12) | 2 | 27 | (9) | 2 | ||||||||||
| Adjusted income before taxes | 285 | 268 | 222 | 295 | 286 | 282 | 580 | 554 | 504 | ||||||||||
| Adjusted return on regulatory capital (%) | – | – | – | – | – | – | 18.6 | 17.6 | 15.6 | ||||||||||
|
Private Clients |
Corporate & Institutional Clients |
Swiss Universal Bank |
|||||||||||
| in | 6M18 | 6M17 | 6M18 | 6M17 | 6M18 | 6M17 | |||||||
| Adjusted results (CHF million, except where indicated) | |||||||||||||
| Net revenues | 1,519 | 1,444 | 1,331 | 1,315 | 2,850 | 2,759 | |||||||
| Gains on business sales | (19) | 0 | (18) | 0 | (37) | 0 | |||||||
| Adjusted net revenues | 1,500 | 1,444 | 1,313 | 1,315 | 2,813 | 2,759 | |||||||
| Provision for credit losses | 21 | 23 | 48 | 23 | 69 | 46 | |||||||
| Total operating expenses | 965 | 1,038 | 700 | 769 | 1,665 | 1,807 | |||||||
| Restructuring expenses | (39) | (45) | (16) | (3) | (55) | (48) | |||||||
| Major litigation provisions | 0 | (2) | 0 | (31) | 0 | (33) | |||||||
| Adjusted total operating expenses | 926 | 991 | 684 | 735 | 1,610 | 1,726 | |||||||
| Income before taxes | 533 | 383 | 583 | 523 | 1,116 | 906 | |||||||
| Total adjustments | 20 | 47 | (2) | 34 | 18 | 81 | |||||||
| Adjusted income before taxes | 553 | 430 | 581 | 557 | 1,134 | 987 | |||||||
| Adjusted return on regulatory capital (%) | – | – | – | – | 18.0 | 15.4 | |||||||
A-6
| International Wealth Management | |||||||||||||||||
| in / end of | % change | in / end of | % change | ||||||||||||||
| 2Q18 | 1Q18 | 2Q17 | QoQ | YoY | 6M18 | 6M17 | YoY | ||||||||||
| Results (CHF million) | |||||||||||||||||
| Net revenues | 1,344 | 1,403 | 1,264 | (4) | 6 | 2,747 | 2,485 | 11 | |||||||||
| of which Private Banking | 992 | 1,043 | 927 | (5) | 7 | 2,035 | 1,810 | 12 | |||||||||
| of which Asset Management | 352 | 360 | 337 | (2) | 4 | 712 | 675 | 5 | |||||||||
| Provision for credit losses | 5 | (1) | 8 | – | (38) | 4 | 10 | (60) | |||||||||
| Total operating expenses | 906 | 920 | 891 | (2) | 2 | 1,826 | 1,819 | 0 | |||||||||
| Income before taxes | 433 | 484 | 365 | (11) | 19 | 917 | 656 | 40 | |||||||||
| of which Private Banking | 347 | 401 | 297 | (13) | 17 | 748 | 536 | 40 | |||||||||
| of which Asset Management | 86 | 83 | 68 | 4 | 26 | 169 | 120 | 41 | |||||||||
| Metrics (%) | |||||||||||||||||
| Return on regulatory capital | 31.8 | 35.7 | 28.3 | – | – | 33.6 | 25.6 | – | |||||||||
| Cost/income ratio | 67.4 | 65.6 | 70.5 | – | – | 66.5 | 73.2 | – | |||||||||
| Private Banking | |||||||||||||||||
| Assets under management (CHF billion) | 370.7 | 369.7 | 336.4 | 0.3 | 10.2 | 370.7 | 336.4 | 10.2 | |||||||||
| Net new assets (CHF billion) | 5.2 | 5.5 | 4.6 | – | – | 10.7 | 9.3 | – | |||||||||
| Gross margin (annualized) (bp) | 107 | 114 | 110 | – | – | 110 | 109 | – | |||||||||
| Net margin (annualized) (bp) | 37 | 44 | 35 | – | – | 41 | 32 | – | |||||||||
| Asset Management | |||||||||||||||||
| Assets under management (CHF billion) | 401.4 | 391.2 | 366.0 | 2.6 | 9.7 | 401.4 | 366.0 | 9.7 | |||||||||
| Net new assets (CHF billion) | 8.0 | 9.0 | 2.8 | – | – | 17.0 | 17.8 | – | |||||||||
A-7
| Reconciliation of adjusted results | |||||||||||||||||||
| Private Banking | Asset Management | International Wealth Management | |||||||||||||||||
| in | 2Q18 | 1Q18 | 2Q17 | 2Q18 | 1Q18 | 2Q17 | 2Q18 | 1Q18 | 2Q17 | ||||||||||
| Adjusted results (CHF million, except where indicated) | |||||||||||||||||||
| Net revenues | 992 | 1,043 | 927 | 352 | 360 | 337 | 1,344 | 1,403 | 1,264 | ||||||||||
| (Gains)/losses on business sales | 0 | (37) | 0 | 0 | 1 | 0 | 0 | (36) | 0 | ||||||||||
| Adjusted net revenues | 992 | 1,006 | 927 | 352 | 361 | 337 | 1,344 | 1,367 | 1,264 | ||||||||||
| Provision for credit losses | 5 | (1) | 8 | 0 | 0 | 0 | 5 | (1) | 8 | ||||||||||
| Total operating expenses | 640 | 643 | 622 | 266 | 277 | 269 | 906 | 920 | 891 | ||||||||||
| Restructuring expenses | (25) | (18) | (4) | (3) | (8) | (3) | (28) | (26) | (7) | ||||||||||
| Major litigation provisions | 0 | 0 | (6) | 0 | 0 | 0 | 0 | 0 | (6) | ||||||||||
| Adjusted total operating expenses | 615 | 625 | 612 | 263 | 269 | 266 | 878 | 894 | 878 | ||||||||||
| Income before taxes | 347 | 401 | 297 | 86 | 83 | 68 | 433 | 484 | 365 | ||||||||||
| Total adjustments | 25 | (19) | 10 | 3 | 9 | 3 | 28 | (10) | 13 | ||||||||||
| Adjusted income before taxes | 372 | 382 | 307 | 89 | 92 | 71 | 461 | 474 | 378 | ||||||||||
| Adjusted return on regulatory capital (%) | – | – | – | – | – | – | 33.9 | 34.9 | 29.3 | ||||||||||
|
Private Banking |
Asset Management |
International Wealth Management |
|||||||||||
| in | 6M18 | 6M17 | 6M18 | 6M17 | 6M18 | 6M17 | |||||||
| Adjusted results (CHF million, except where indicated) | |||||||||||||
| Net revenues | 2,035 | 1,810 | 712 | 675 | 2,747 | 2,485 | |||||||
| (Gains)/losses on business sales | (37) | 0 | 1 | 0 | (36) | 0 | |||||||
| Adjusted net revenues | 1,998 | 1,810 | 713 | 675 | 2,711 | 2,485 | |||||||
| Provision for credit losses | 4 | 10 | 0 | 0 | 4 | 10 | |||||||
| Total operating expenses | 1,283 | 1,264 | 543 | 555 | 1,826 | 1,819 | |||||||
| Restructuring expenses | (43) | (27) | (11) | (16) | (54) | (43) | |||||||
| Major litigation provisions | 0 | (6) | 0 | 0 | 0 | (6) | |||||||
| Adjusted total operating expenses | 1,240 | 1,231 | 532 | 539 | 1,772 | 1,770 | |||||||
| Income before taxes | 748 | 536 | 169 | 120 | 917 | 656 | |||||||
| Total adjustments | 6 | 33 | 12 | 16 | 18 | 49 | |||||||
| Adjusted income before taxes | 754 | 569 | 181 | 136 | 935 | 705 | |||||||
| Adjusted return on regulatory capital (%) | – | – | – | – | 34.3 | 27.5 | |||||||
A-8
| Asia Pacific | |||||||||||||||||
| in / end of | % change | in / end of | % change | ||||||||||||||
| 2Q18 | 1Q18 | 2Q17 | QoQ | YoY | 6M18 | 6M17 | YoY | ||||||||||
| Results (CHF million) | |||||||||||||||||
| Net revenues | 914 | 991 | 848 | (8) | 8 | 1,905 | 1,729 | 10 | |||||||||
| of which Wealth Management & Connected | 564 | 663 | 559 | (15) | 1 | 1,227 | 1,148 | 7 | |||||||||
| of which Markets | 350 | 328 | 289 | 7 | 21 | 678 | 581 | 17 | |||||||||
| Provision for credit losses | 7 | 10 | (1) | (30) | – | 17 | 3 | 467 | |||||||||
| Total operating expenses | 690 | 747 | 661 | (8) | 4 | 1,437 | 1,391 | 3 | |||||||||
| Income before taxes | 217 | 234 | 188 | (7) | 15 | 451 | 335 | 35 | |||||||||
| of which Wealth Management & Connected | 168 | 205 | 196 | (18) | (14) | 373 | 397 | (6) | |||||||||
| of which Markets | 49 | 29 | (8) | 69 | – | 78 | (62) | – | |||||||||
| Metrics (%) | |||||||||||||||||
| Return on regulatory capital | 14.8 | 16.9 | 14.4 | – | – | 15.9 | 12.7 | – | |||||||||
| Cost/income ratio | 75.5 | 75.4 | 77.9 | – | – | 75.4 | 80.5 | – | |||||||||
| Wealth Management & Connected – Private Banking | |||||||||||||||||
| Assets under management (CHF billion) | 205.6 | 199.1 | 177.8 | 3.3 | 15.6 | 205.6 | 177.8 | 15.6 | |||||||||
| Net new assets (CHF billion) | 3.4 | 6.2 | 4.5 | – | – | 9.6 | 9.8 | – | |||||||||
| Gross margin (annualized) (bp) | 80 | 92 | 91 | – | – | 86 | 94 | – | |||||||||
| Net margin (annualized) (bp) | 29 | 34 | 33 | – | – | 32 | 33 | – | |||||||||
A-9
| Reconciliation of adjusted results | |||||||||||||||||||
| Wealth Management & Connected | Markets | Asia Pacific | |||||||||||||||||
| in | 2Q18 | 1Q18 | 2Q17 | 2Q18 | 1Q18 | 2Q17 | 2Q18 | 1Q18 | 2Q17 | ||||||||||
| Adjusted results (CHF million, except where indicated) | |||||||||||||||||||
| Net revenues | 564 | 663 | 559 | 350 | 328 | 289 | 914 | 991 | 848 | ||||||||||
| Provision for credit losses | 6 | 9 | (1) | 1 | 1 | 0 | 7 | 10 | (1) | ||||||||||
| Total operating expenses | 390 | 449 | 364 | 300 | 298 | 297 | 690 | 747 | 661 | ||||||||||
| Restructuring expenses | (11) | (3) | (2) | (9) | (3) | (9) | (20) | (6) | (11) | ||||||||||
| Major litigation provisions | (29) | (48) | 0 | 0 | 0 | 0 | (29) | (48) | 0 | ||||||||||
| Adjusted total operating expenses | 350 | 398 | 362 | 291 | 295 | 288 | 641 | 693 | 650 | ||||||||||
| Income/(loss) before taxes | 168 | 205 | 196 | 49 | 29 | (8) | 217 | 234 | 188 | ||||||||||
| Total adjustments | 40 | 51 | 2 | 9 | 3 | 9 | 49 | 54 | 11 | ||||||||||
| Adjusted income before taxes | 208 | 256 | 198 | 58 | 32 | 1 | 266 | 288 | 199 | ||||||||||
| Adjusted return on regulatory capital (%) | – | – | – | – | – | – | 18.3 | 20.8 | 15.3 | ||||||||||
|
Wealth Management & Connected |
Markets |
Asia Pacific |
|||||||||||
| in | 6M18 | 6M17 | 6M18 | 6M17 | 6M18 | 6M17 | |||||||
| Adjusted results (CHF million, except where indicated) | |||||||||||||
| Net revenues | 1,227 | 1,148 | 678 | 581 | 1,905 | 1,729 | |||||||
| Provision for credit losses | 15 | 3 | 2 | 0 | 17 | 3 | |||||||
| Total operating expenses | 839 | 748 | 598 | 643 | 1,437 | 1,391 | |||||||
| Restructuring expenses | (14) | (6) | (12) | (24) | (26) | (30) | |||||||
| Major litigation provisions | (77) | 0 | 0 | 0 | (77) | 0 | |||||||
| Adjusted total operating expenses | 748 | 742 | 586 | 619 | 1,334 | 1,361 | |||||||
| Income/(loss) before taxes | 373 | 397 | 78 | (62) | 451 | 335 | |||||||
| Total adjustments | 91 | 6 | 12 | 24 | 103 | 30 | |||||||
| Adjusted income/(loss) before taxes | 464 | 403 | 90 | (38) | 554 | 365 | |||||||
| Adjusted return on regulatory capital (%) | – | – | – | – | 19.6 | 13.8 | |||||||
| APAC Markets | ||||||||||||||
| in | 2Q18 | 2Q17 | 6M18 | 6M17 | ||||||||||
| Adjusted results (USD million) | ||||||||||||||
| Net revenues | 354 | 298 | 702 | 591 | ||||||||||
| Total operating expenses | 304 | 305 | 619 | 652 | ||||||||||
| Restructuring expenses | (10) | (8) | (13) | (23) | ||||||||||
| Adjusted total operating expenses | 294 | 297 | 606 | 629 | ||||||||||
| Income before taxes | 50 | (7) | 81 | (61) | ||||||||||
| Total adjustments | 10 | 8 | 13 | 23 | ||||||||||
| Adjusted income before taxes | 60 | 1 | 94 | (38) | ||||||||||
A-10
| Global Markets | |||||||||||||||||
| in / end of | % change | in / end of | % change | ||||||||||||||
| 2Q18 | 1Q18 | 2Q17 | QoQ | YoY | 6M18 | 6M17 | YoY | ||||||||||
| Results (CHF million) | |||||||||||||||||
| Net revenues | 1,426 | 1,546 | 1,517 | (8) | (6) | 2,972 | 3,126 | (5) | |||||||||
| Provision for credit losses | 12 | 4 | 12 | 200 | 0 | 16 | 17 | (6) | |||||||||
| Total operating expenses | 1,266 | 1,247 | 1,248 | 2 | 1 | 2,513 | 2,535 | (1) | |||||||||
| Income before taxes | 148 | 295 | 257 | (50) | (42) | 443 | 574 | (23) | |||||||||
| Metrics (%) | |||||||||||||||||
| Return on regulatory capital | 4.2 | 8.5 | 7.4 | – | – | 6.5 | 8.2 | – | |||||||||
| Cost/income ratio | 88.8 | 80.7 | 82.3 | – | – | 84.6 | 81.1 | – | |||||||||
| Reconciliation of adjusted results | |||||||||||
| Global Markets | |||||||||||
| in | 2Q18 | 1Q18 | 2Q17 | 6M18 | 6M17 | ||||||
| Adjusted results (CHF million, except where indicated) | |||||||||||
| Net revenues | 1,426 | 1,546 | 1,517 | 2,972 | 3,126 | ||||||
| Provision for credit losses | 12 | 4 | 12 | 16 | 17 | ||||||
| Total operating expenses | 1,266 | 1,247 | 1,248 | 2,513 | 2,535 | ||||||
| Restructuring expenses | (56) | (42) | (32) | (98) | (52) | ||||||
| Adjusted total operating expenses | 1,210 | 1,205 | 1,216 | 2,415 | 2,483 | ||||||
| Income before taxes | 148 | 295 | 257 | 443 | 574 | ||||||
| Total adjustments | 56 | 42 | 32 | 98 | 52 | ||||||
| Adjusted income before taxes | 204 | 337 | 289 | 541 | 626 | ||||||
| Adjusted return on regulatory capital (%) | 5.8 | 9.8 | 8.3 | 7.9 | 9.0 | ||||||
| Global Markets | ||||||||||||
| in | 2Q18 | 2Q17 | 6M18 | 6M17 | ||||||||
| Adjusted results (USD million) | ||||||||||||
| Net revenues | 1,441 | 1,560 | 3,083 | 3,175 | ||||||||
| Provision for credit losses | 13 | 12 | 17 | 17 | ||||||||
| Total operating expenses | 1,279 | 1,281 | 2,604 | 2,573 | ||||||||
| Restructuring expenses | (57) | (33) | (101) | (53) | ||||||||
| Adjusted total operating expenses | 1,222 | 1,248 | 2,503 | 2,520 | ||||||||
| Income before taxes | 149 | 267 | 462 | 585 | ||||||||
| Total adjustments | 57 | 33 | 101 | 53 | ||||||||
| Adjusted income before taxes | 206 | 300 | 563 | 638 | ||||||||
A-11
| Investment Banking & Capital Markets | |||||||||||||||||
| in / end of | % change | in / end of | % change | ||||||||||||||
| 2Q18 | 1Q18 | 2Q17 | QoQ | YoY | 6M18 | 6M17 | YoY | ||||||||||
| Results (CHF million) | |||||||||||||||||
| Net revenues | 644 | 528 | 511 | 22 | 26 | 1,172 | 1,117 | 5 | |||||||||
| Provision for credit losses | 15 | 1 | 13 | – | 15 | 16 | 19 | (16) | |||||||||
| Total operating expenses | 519 | 468 | 420 | 11 | 24 | 987 | 871 | 13 | |||||||||
| Income before taxes | 110 | 59 | 78 | 86 | 41 | 169 | 227 | (26) | |||||||||
| Metrics (%) | |||||||||||||||||
| Return on regulatory capital | 13.9 | 8.1 | 12.0 | – | – | 11.1 | 17.4 | – | |||||||||
| Cost/income ratio | 80.6 | 88.6 | 82.2 | – | – | 84.2 | 78.0 | – | |||||||||