Credit Suisse AG 6-K, filed Feb 18, 2021
Credit Suisse AG (GLDI)
About this 6-K
Credit Suisse AG filed this 6-K on February 18, 2021.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16UNDER THE SECURITIES EXCHANGE ACT OF 1934
February 18, 2021
Commission File Number 001-15244
Credit Suisse Group AG
(Translation of registrant’s name into English)
Paradeplatz 8, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number 001-33434
Credit Suisse AG
(Translation of registrant’s name into English)
Paradeplatz 8, 8001 Zurich, Switzerland
(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 20-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 4Q20 and full year 2020 results.
| Media Release<br><br><br><br>Zurich, February 18, 2021 |
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Fourth quarter and full year 2020 financial results
Strong underlying performance positions bank to accelerate growth
| - | Reported 4Q20 pre-tax loss of CHF 88 mn, net revenues of CHF 5.2 bn; results impacted by increased provision for credit losses, major litigation provisions, restructuring costs and significant items; 4Q20 adjusted pre-tax income, excluding significant items* of CHF 861 mn |
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| - | Reported FY20 pre-tax income of CHF 3.5 bn, net revenues of CHF 22.4 bn, diluted earnings per share of CHF 1.06 |
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| - | FY20 adjusted pre-tax income, excluding significant items*, of CHF 4.4 bn, up 6% versus 2019 |
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| Thomas Gottstein, Chief Executive Officer of Credit Suisse Group AG, commented: “Despite a challenging environment for societies and economies in 2020, we saw a strong underlying performance across Wealth Management and Investment Banking, while addressing historic issues. We remained focused on serving our clients around the globe and on delivering value to our shareholders. The steady execution of the strategic initiatives we announced last July supports our growth agenda and allows for further investment in our businesses. Looking forward into 2021 and beyond, we aim to further accelerate growth in Wealth Management and deliver sustainable returns in Investment Banking. We remain strongly committed to positioning Credit Suisse as a leader in sustainability and driving digitalization and automation to generate positive operating leverage. I would like to thank all our employees for their outstanding commitment and loyalty.” | |
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| Reported key financials (YoY) | Adjusted key financials, excl. sign. items* (YoY) |
| FY20:<br><br><br><br>- Pre-tax income: CHF 3.5 bn, down 27% primarily due to increased provision for credit losses, major litigation provisions and York impairment<br><br><br><br>- Net revenues: CHF 22.4 bn, flat<br><br><br><br>- Total operating expenses: CHF 17.8 bn, up 2%<br><br><br><br>- Net income att/t shareholders: CHF 2.7 bn, down 22%<br><br><br><br>- RoTE: 6.6% | FY20:<br><br><br><br>- Pre-tax income: CHF 4.4 bn, up 6%, driven by solid revenue momentum, especially in the IB, and continued cost discipline<br><br><br><br>- Pre-provision profit of CHF 5.5 bn, up 22%<br><br><br><br>- Net revenues: CHF 22.1 bn, up 3%<br><br><br><br>- Total operating expenses: CHF 16.6 bn, down 2% |
| 4Q20:<br><br><br><br>- Pre-tax loss: CHF 88 mn, primarily due to major litigation provisions and York impairment<br><br><br><br>- Net revenues: CHF 5.2 bn, down 16%<br><br><br><br>- Total operating expenses: CHF 5.2 bn, up 7%<br><br><br><br>- Net loss att/t shareholders: CHF 353 mn<br><br><br><br>- CET1 ratio: 12.9% (3Q20: 13.0%); Tier 1 leverage ratio: 6.4%^1^ (3Q20: 6.3%^2^) | 4Q20:<br><br><br><br>- Pre-tax income: CHF 861 mn, down 10%, driven by lower revenues particularly in IWM, SUB and the Corporate Center<br><br><br><br>- Net revenues: CHF 5.3 bn, down 4%<br><br><br><br>- Total operating expenses: CHF 4.3 bn, down 2% |
| Key highlights for 2020 | |
| Strong underlying financial performance in 2020, with PTI and net revenue growth on an adjusted basis and excluding significant items* despite significant FX headwinds and higher provision for credit losses which are in line with the overall banking industry, demonstrating the strength of our diversified franchise<br><br><br><br><br><br><br><br>Executed four key strategic initiatives to support growth agenda, expected to generate run-rate savings of ~ CHF 400 mn to CHF 450 mn p.a.^3^:<br><br><br><br>- Created one global Investment Bank<br><br><br><br>- Launched SRI – Sustainability, Research & Investment Solutions<br><br><br><br>- Integrating Neue Aargauer Bank into SUB and launched CSX<br><br><br><br>- Combined Risk and Compliance functions<br><br><br><br><br><br><br><br>Investments to accelerate our growth:<br><br><br><br>- Targeting investments of CHF 300 mn to CHF 600 mn in growth initiatives across Wealth Management and the Investment Bank, supported by investments in technology platform and risk infrastructure | - WM-related investments: Increase adjusted PTI excluding significant items* (CHF 3.8bn in 2020) and adjusted RoRC excluding significant items* (18% in 2020) towards our related ambitions of CHF 5.0-5.5 bn PTI in 2023 and 20-25% RoRC, as part of our strategy to accelerate growth and invest most of marginal capital generated^4^ into Wealth Management to deploy into lending, accompanied with investments in RM recruitment, ESG products and private markets<br><br><br><br>- IB: adjusted* RoRC of 13% in line with our medium-term ambition of 10-15%, supported by 70% adjusted* PTI growth in 2020; further selected IB investments planned (e.g. in M&A)<br><br><br><br><br><br><br><br>Strong capital position and disciplined capital distribution:<br><br><br><br>- CET1 ratio of 12.9% as of the end of 2020<br><br><br><br>- Total capital distribution of ~ CHF 1 bn in 2020^5^;<br><br><br><br>- Proposal to our shareholders to increase 2020 dividend by 5.4% vs 2019 (CHF 0.2926 per share)<br><br><br><br>- Started our share buyback program for 2021 in January, targeting a total of CHF 1.0 -1.5bn for the full year^6^ |
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| Media Release<br><br><br><br>Zurich, February 18, 2021 | ||||||||
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| NNA FY20 (in CHF bn) | NNA 4Q20 (in CHF bn) | AuM (in CHF tn) | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Group: 42 | SUB: 7.8 | IWM: 32.2 | APAC: 8.6 | Group: 8.4 | SUB: 1.7 | IWM: 10.6 | APAC: (1.1) | 1.5 |
| o/w WM businesses: 19.4 | SUB PC: (5.9) | IWM PB:<br><br><br><br>16.7 | APAC: 8.6 | o/w WM businesses: 1.1 | SUB PC: (2.1) | IWM PB:<br><br><br><br>4.3 | APAC: (1.1) | |
| Wealth Management-related businesses, net revenues (YoY) | Global investment banking businesses, net revenues (YoY) | |||||||
| --- | --- | --- | ||||||
| Reported | Adjusted, excl. sign. items*, at FXC | Reported | ||||||
| FY20: CHF 13.6 bn, down 8%<br><br>transaction-based revenues up 3%<br><br>recurring commissions and fees down 4%<br><br><br><br>net interest income down 4% | FY20: CHF 13.9 bn, up 2%<br><br><br><br>transaction-based revenues up 8%<br><br>recurring commissions and fees stable<br><br><br><br>net interest income down 2% | FY20: USD 10.2 bn, up 19%<br><br><br><br>Fixed Income Sales & Trading up 26%<br><br><br><br>Equity Sales & Trading up 12%<br><br>Capital Markets & Advisory up 31%^7^ | ||||||
| 4Q20: CHF 3.1 bn, down 24%<br><br>transaction-based revenues up 7%<br><br>recurring commissions and fees down 6%<br><br>net interest income down 14% | 4Q20: CHF 3.4 bn, down 2%<br><br><br><br>transaction-based revenues up 15%<br><br>recurring commissions and fees stable<br><br><br><br>net interest income down 11% | 4Q20: USD 2.5 bn, up 19%<br><br><br><br>Fixed Income Sales & Trading flat<br><br>Equity Sales & Trading up 5%<br><br>Capital Markets & Advisory up 63%^8^ |
SUMMARY
FY 2020 Results
In a year characterized by the COVID-19 pandemic, macroeconomic challenges and strong FX headwinds, we continued to position the bank for growth in 2021 and beyond. Reaffirming our strategy as a leading Wealth Manager with strong global Investment Banking capabilities, we successfully launched four key strategic initiatives to support our growth agenda, including:
| - | Creation of a global Investment Bank (IB) to build a client-centric global platform with critical scale for corporate, institutional and entrepreneurial clients; including the creation of Global Trading Solutions (GTS) and a globally integrated Equities platform |
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| - | Establishment of a new Sustainability, Research & Investment Solutions (SRI) function at the Executive Board (ExB) level, affirming our commitment to providing our clients a leading offering, to deliver on our ambition to become a leader in Sustainability |
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| - | Integration of Neue Aargauer Bank into Swiss Universal Bank (SUB) to optimize the Swiss branch network, which is well on track; launch of digital banking offering CSX in the Swiss retail space |
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| - | Launch of a combined Chief Risk and Compliance Officer (CRCO) function to create alignment across our control functions |
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While executing on these initiatives, we delivered a strong underlying performance, driven by our global investment banking activities, and experienced several items in 2020 that had a considerable impact on the reported numbers. These items included major litigation provisions primarily related to legacy RMBS cases of CHF 988 million, restructuring and real estate disposal expenses of CHF 208 million, a net adverse impact on our pre-tax income of CHF 287 million from FX moves, as well as a number of significant items*, including an impairment to the valuation of the non-controlling interest in York Capital Management (York) of CHF 414 million and a gain related to the transfer of InvestLab of CHF 268 million.
On a reported basis, pre-tax income of CHF 3.5 billion was down 27% year on year. Our net income attributable to shareholders decreased by 22% to CHF 2.7 billion. Net revenues of CHF 22.4 billion were flat year on year, while total operating expenses of CHF 17.8 billion were up 2%, driven by litigation provisions and restructuring expenses.
On an adjusted basis, pre-tax income, excluding significant items*, was CHF 4.4 billion, up 6% year on year, driven by solid revenue momentum especially in the IB, and continued positive operating leverage, demonstrating a strong underlying performance. Adjusted net revenues, excluding significant items*, were CHF 22.1 billion, up 3% year on year, and adjusted* total operating expenses were CHF 16.6 billion, down 2%.
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| Media Release<br><br><br><br>Zurich, February 18, 2021 |
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Our Wealth Management-related businesses had a strong underlying performance, driven by increased transaction-based revenues. On a reported basis, total Wealth Management-related net revenues of CHF 13.6 billion were down 8% year on year, with higher transaction-based revenues, up 3%, being more than offset by lower recurring commissions and fees and lower net interest income, both down 4%. Adjusted total Wealth-Management-related net revenues, excluding significant items and at constant FX rates*, of CHF 13.9 billion were up 2% year on year, with stronger transaction-based revenues, up 8%, stable recurring commission and fees and net interest income down 2%.
In our global investment banking businesses we delivered a strong performance. Global investment banking revenues of USD 10.2 billion were up 19% year on year, with Fixed Income Sales & Trading up 26%, Equity Sales & Trading up 12%, and Capital Markets & Advisory^9^ up 31%.
Our GTS platform, which collaborates across our four divisions delivering institutional-style solutions to our wealth management clients, we recorded strong revenue growth, with net revenues up 31% year on year.
We recorded strong NNA of CHF 42.0 billion across our businesses, with CHF 7.8 billion in SUB, CHF 32.2 billion in International Wealth Management (IWM) and CHF 8.6 billion in APAC, showcasing the strengths of our global footprint. NNA in our Wealth Management businesses were CHF 19.4 billion. Our AuM at the end of 4Q20 increased slightly at CHF 1.5 trillion, with positive market movements and NNA offsetting significant negative FX-related effects.
We recorded CHF 1.1 billion provision for credit losses, compared to CHF 324 million last year. This is almost four times higher than our eleven-year average of CHF 280 million and driven by negative developments in our corporate lending portfolio and the application of the current expected credit loss (CECL) methodology.
After a 9M20 Return on Tangible Equity (RoTE) of 9.8%, our full-year RoTE was 6.6%, mainly reflecting the litigation provisions we recorded in 4Q20, as well as the impairment to the valuation of our minority shareholding in York. We remain committed to delivering on our ambition of a medium-term RoTE of 10-12% in a normalized environment, subject to market and economic conditions.
Our resilient and diversified business model continues to generate capital. Our capital position at the end of 4Q20 remained strong, with a CET1 ratio of 12.9% compared to 13.0% at the end of 3Q20. Our Tier 1 leverage ratio was 6.4%^10^ at the end of 4Q20, compared to 6.3%^11^ end of 3Q20.
4Q20 Results
We absorbed several items during the quarter that had a considerable impact on the reported numbers. These included major litigation provisions of CHF 757 million, restructuring and real estate disposal expenses of CHF 78 million, a net adverse impact on our pre-tax income of CHF 108 million from FX moves, as well as a number of significant items*, including an impairment to the valuation of the non-controlling interest in York of CHF 414 million, the CHF 158 million gain related to the equity investment revaluation of SIX and the CHF 127 million gain related to the equity investment revaluation of Allfunds Group.
As a consequence, and as indicated in the announcement made on January 8, 2021, we reported a pre-tax loss in 4Q20. Our pre-tax loss was CHF 88 million, and our net loss attributable to shareholders was CHF 353 million. Net revenues of CHF 5.2 billion were down 16% year on year, while total operating expenses of CHF 5.2 billion increased 7%.
Adjusted pre-tax income, excluding significant items*, was CHF 861 million, down 10% year on year and adjusted net revenues, excluding significant items*, were CHF 5.3 billion, down 4%. Adjusted* total operating expenses of CHF 4.3 billion were down 2% year on year.
In our Wealth Management-related businesses, we reported net revenues of CHF 3.1 billion, down 24% year on year, with transaction-based revenues up 7%, lower recurring commissions and fees, down 6% and lower net interest income, down 14%. Adjusted total Wealth-Management-related net revenues, excluding significant items
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| Media Release<br><br><br><br>Zurich, February 18, 2021 |
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and at constant FX rates*, of CHF 3.4 billion were down 2% year on year, with strong transaction-based revenues, up 15%, stable recurring commissions and fees, and lower net interest income, down 11%.
Our global investment banking revenues increased to USD 2.5 billion, up 19% year on year, benefitting from a resilient performance across products: Fixed Income Sales & Trading was flat year on year, Equity Sales & Trading was up 5%, and Capital Markets & Advisory^12^ was up 63%.
We recorded CHF 138 million provision for credit losses, compared to CHF 94 million in 3Q20, driven by higher net provisions across SUB, IWM and IB.
Total NNA were CHF 8.4 billion, with CHF 1.7 billion in SUB, CHF 10.6 billion in IWM and an outflow of CHF 1.1 billion in APAC. NNA in our Wealth Management businesses were CHF 1.1 billion.
| OUTLOOK<br><br><br><br>We would caution that the COVID-19 pandemic is not yet behind us and, notwithstanding the continued fiscal and monetary stimuli, the pace of recovery remains uncertain. Credit Suisse has seen a strong start to 2021, led by a substantial YoY increase in client activity. Our Investment Bank is benefitting from a particularly strong performance in capital markets issuance activity and from a continued good performance across both Fixed Income and Equity Sales & Trading. This increase in client activity is also benefitting all three of our Wealth Management-related businesses, led by growth in APAC, while recurring commissions and fees are stable with higher assets under management offsetting the strengthening of the Swiss Franc. While net interest income remains lower than in 1Q20 due to interest rate reductions and the weaker US dollar, this impact is stabilizing sequentially and, assuming unchanged FX rates from current levels, we would expect this to improve as we plan to increase our lending volumes.<br><br><br><br><br><br><br><br>We remain fully focused on delivering outstanding products and services to our clients, supporting them through the persisting COVID-19 pandemic and the resultant economic challenges. With the CET1 capital ratio at 12.9% as of the end of 2020, we continue to focus on deploying most of the marginal capital generated into Wealth Management as well as disciplined capital distribution based on dividend growth of at least 5% per annum, including a proposed dividend per share of 0.2926 in respect of the 2020 dividend, and an ongoing share buyback program of up to CHF 1.5 bn, with at least CHF 1.0 bn expected for 2021^13^. |
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CHANGES TO THE BOARD OF DIRECTORS
As previously announced on December 1, 2020, the Board of Directors is proposing António Horta-Osório for election as Chairman of the Board of Directors at the Annual General Meeting (AGM) on April 30, 2021. In addition and as previously announced on October 29, 2020, the Board of Directors is proposing Clare Brady and Blythe Masters for election as new non-executive members of the Board of Directors.
From the current members of the Board of Directors, Urs Rohner, Joaquin J. Ribeiro and John Tiner will not stand for re-election at the AGM in 2021. All other members of the Board of Directors will stand for re-election for a further term of office of one year.
Urs Rohner, Chairman of the Board of Directors of Credit Suisse Group, said: “Joaquin “Jack” Ribeiro joined the Board of Directors in 2016 and has served as a member of the Audit Committee for the past five years. He informed the Board that he will not stand for re-election this year. His important contributions as a professional accountant and longstanding experience within the financial services industry have been of great value to the Audit Committee and the Board during his tenure. John Tiner joined the Board of Directors in 2009. After having served the Group for 12 years, he has reached the maximum standard term limit and will therefore not be standing for re-election at the AGM in 2021. The Group benefited greatly from his invaluable contributions in the Audit Committee, a committee he chaired for nine years, the Risk Committee, the Governance and Nominations Committee, as well as the Conduct and Financial Crime Control Committee, and his expertise as a member of the board of several Credit Suisse entities. We thank both, John and Jack, for their extraordinary commitment and excellent collaboration, and wish them all the best for their future endeavors.”
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| Media Release<br><br><br><br>Zurich, February 18, 2021 |
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CAPITAL RETURNS TO SHAREHOLDERS
We remain focused on delivering attractive capital returns to our shareholders. As previously announced, we have started our share buyback program for 2021 in January and have repurchased CHF 112 million of shares as of February 16.
The Board of Directors will propose to the shareholders at the Annual General Meeting on April 30, 2021 a cash distribution of CHF 0.2926 per share for the financial year 2020. This is in line with our intention to increase the ordinary dividend per share by at least 5% per annum. 50% of the distribution will be paid out of capital contribution reserves, free of Swiss withholding tax and not be subject to income tax for Swiss resident individuals holding the shares as a private investment, and 50% will be paid out of retained earnings, net of 35% Swiss withholding tax.
DETAILED DIVISIONAL SUMMARIES
Swiss Universal Bank (SUB)
| Reported results<br><br><br><br>(in CHF million) | 4Q20 | 4Q19 | ∆4Q19 | FY20 | FY19 | ∆FY19 |
|---|---|---|---|---|---|---|
| Net revenues | 1,393 | 1,734 | (20)% | 5,615 | 5,905 | (5)% |
| Provision for credit losses | 66 | 43 | - | 270 | 109 | - |
| Total operating expenses | 840 | 824 | 2% | 3,241 | 3,223 | 1% |
| Pre-tax income | 487 | 867 | (44)% | 2,104 | 2,573 | (18)% |
| Cost/income ratio (%) | 60 | 48 | - | 58 | 55 | - |
| Adjusted results, excluding significant items*<br><br><br><br>(in CHF million) | 4Q20 | 4Q19 | ∆4Q19 | FY20 | FY19 | ∆FY19 |
| --- | --- | --- | --- | --- | --- | --- |
| Net revenues | 1,243 | 1,322 | (6)% | 5,306 | 5,278 | 1% |
| Provision for credit losses | 66 | 43 | - | 270 | 109 | - |
| Total operating expenses | 790 | 822 | (4)% | 3,149 | 3,208 | (2)% |
| Pre-tax income | 387 | 457 | (15)% | 1,887 | 1,961 | (4)% |
| Cost/income ratio (%) | 64 | 62 | - | 59 | 61 | - |
FY20 Results
| - | Solid full year 2020 with pre-tax income of CHF 2.1 billion |
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| - | Adjusted pre-tax income, excluding significant items*, of CHF 1.9 billion, decreased by 4% year on year |
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| - | Adjusted net revenues, excluding significant items*, were CHF 5.3 billion, up 1% year on year, and adjusted* total operating expenses were CHF 3.1 billion, down 2% |
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| - | Strong focus on cost discipline leading to an adjusted cost/income ratio, excluding significant items*, of 59%, down 2 percentage points year on year |
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| - | Higher provision for credit losses was primarily driven by CECL-related provision for credit losses and a single case in our Corporate & Institutional Client business in 3Q20 |
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| - | NNA of CHF 7.8 billion |
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Private Clients
| - | Adjusted pre-tax income, excluding significant items*, of CHF 922 million, stable year on year |
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| - | Adjusted net revenues, excluding significant items*, of CHF 2.9 billion, up 2% year on year, driven by higher transaction-based revenues from increased client activity |
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Corporate & Institutional Clients
| - | Adjusted pre-tax income, excluding significant items*, of CHF 965 million, down 7% year on year |
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| - | Adjusted net revenues, excluding significant items*, of CHF 2.4 billion, down 1% year on year |
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| Media Release<br><br><br><br>Zurich, February 18, 2021 |
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4Q20 Results
| - | 4Q20 adjusted pre-tax income, excluding significant items*, was CHF 387 million, down 15% year on year |
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| - | Adjusted net revenues, excluding significant items*, of CHF 1.2 billion, down 6% year on year, driven by lower deposit income and lower recurring commissions and fees from our investment in Swisscard, partially offset by increased client activity; stabilization of net interest income compared to the previous quarter; ongoing assessment of deposit pricing in light of the sustained negative interest rate environment |
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| - | Adjusted* total operating expenses down 4% year on year, with continued investments in our digital offering funded by our continued cost discipline |
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| - | SUB recorded higher client business volumes of CHF 1 trillion, up 4% compared to 3Q20 |
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| - | NNA across SUB of CHF 1.7 billion, with inflows primarily from pension businesses in Corporate & Institutional Clients partially offset by outflows in Private Clients |
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Private Clients
| - | Adjusted pre-tax income, excluding significant items*, of CHF 197 million, down 11% year on year |
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| - | Adjusted net revenues, excluding significant items*, of CHF 688 million, down 4% year on year, with increased client activity more than offset by lower deposit income from negative interest rate environment and lower recurring commissions and fees primarily from investment in Swisscard |
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| - | Net asset outflows of CHF 2.1 billion, primarily due to a small number of individual outflows in the ultra-high-net-worth client segment and the usual seasonal slowdown for the quarter |
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| - | Client business volume of CHF 381 billion, up 2% compared to 3Q20 |
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| - | AuM increased by 2% in 4Q20 to CHF 209 billion compared to 3Q20 |
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Corporate & Institutional Clients
| - | Adjusted pre-tax income, excluding significant items*, of CHF 190 million, down 19% year on year |
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| - | Adjusted net revenues, excluding significant items*, of CHF 555 million down 9% year on year, driven by decreased deposit income from lower USD interest rates offsetting higher transactional brokerage revenues |
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| - | NNA of CHF 3.8 billion in 4Q20 reflected continued contribution from pension fund business |
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| - | Client business volume of CHF 620 billion, up 5% compared to 3Q20 |
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| - | AuM increased by 5% in 4Q20 to CHF 463 billion compared to 3Q20 |
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International Wealth Management (IWM)
| IWM reported results<br><br><br><br>(in CHF million) | 4Q20 | 4Q19 | ∆4Q19 | FY20 | FY19 | ∆FY19 |
|---|---|---|---|---|---|---|
| Net revenues | 952 | 1,636 | (42)% | 4,837 | 5,816 | (17)% |
| Provision for credit losses | 25 | 17 | - | 110 | 49 | - |
| Total operating expenses | 939 | 989 | (5)% | 3,675 | 3,702 | (1)% |
| Pre-tax income | (12) | 630 | - | 1,052 | 2,065 | (49)% |
| Cost/income ratio (%) | 99 | 60 | - | 76 | 64 | - |
| IWM adjusted results, excluding significant items*<br><br><br><br>(in CHF million) | 4Q20 | 4Q19 | ∆4Q19 | FY20 | FY19 | ∆FY19 |
| --- | --- | --- | --- | --- | --- | --- |
| Net revenues | 1,254 | 1,412 | (11)% | 4,921 | 5,448 | (10)% |
| Provision for credit losses | 25 | 17 | - | 110 | 49 | - |
| Total operating expenses | 908 | 983 | (8)% | 3,624 | 3,711 | (2)% |
| Pre-tax income | 321 | 412 | (22)% | 1,187 | 1,688 | (30)% |
| Cost/income ratio (%) | 72 | 70 | - | 74 | 68 | - |
FY20 Results
| - | Reported pre-tax income CHF 1.1 billion, down 49% year on year; results affected by adverse impact from significant items, a net charge of CHF (84) million, compared to a benefit of CHF 323 million in 2019, as well as restructuring expenses of CHF 55 million |
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| - | Adjusted pre-tax income, excluding significant items*, of CHF 1.2 billion, down 30% year on year |
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| - | Adjusted net revenues, excluding significant items*, were CHF 4.9 billion, down 10%, affected by macro-headwinds including a reduction in USD interest rates as well as FX movements |
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| - | Adjusted* total operating expenses were CHF 3.6 billion, down 2%, reflecting continued cost discipline |
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| - | Strong NNA of CHF 32.2 billion in 2020 |
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Private Banking
| - | Adjusted pre-tax income, excluding significant items*, of CHF 995 million, down 17% year on year |
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| - | Adjusted net revenues, excluding significant items*, of CHF 3.6 billion, down 5%, driven by lower net interest income and lower recurring commissions and fees |
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| - | Adjusted* total operating expenses were CHF 2.5 billion, down 2% |
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| - | Record NNA of CHF 16.7 billion at a growth rate of 5%, with inflows across emerging markets and Western Europe |
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Asset Management
| - | Adjusted pre-tax income, excluding significant items*, of CHF 192 million, down 60% year on year |
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| - | Adjusted net revenues, excluding significant items*, of CHF 1.3 billion, down 20% |
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| - | Adjusted* total operating expenses were CHF 1.1 billion, down 4% |
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| - | NNA of CHF 15.5 billion |
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4Q20
| - | Reported pre-tax loss of CHF 12 million, driven by the York impairment loss |
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| - | Adjusted pre-tax income, excluding significant items*, was CHF 321 million, including higher client activity in Private Banking and a recovery in performance fees in Asset Management |
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| - | Adjusted net revenues, excluding significant items*, were CHF 1.3 billion, down 11% year on year, and adjusted* total operating expenses were CHF 908 million, down 8% |
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| - | NNA of CHF 10.6 billion |
| --- | --- |
| - | Client business volume of CHF 958 billion, up 3% compared to 3Q20 |
| --- | --- |
Private Banking
| - | Adjusted pre-tax income, excluding significant items*, of CHF 206 million, down 24% year on year, amid macro headwinds and higher credit provisions |
|---|---|
| - | Adjusted net revenues, excluding significant items*, of CHF 862 million were down 10% year on year, driven by lower net interest income as lower deposit margins were impacted by the reductions in the USD interest rates |
| --- | --- |
| - | Adjusted* total operating expenses of CHF 625 million down 7% year on year, including lower variable compensation and the benefit from FX movements |
| --- | --- |
| - | Strong NNA of CHF 4.3 billion |
| --- | --- |
| - | Client business volume at CHF 518 billion, up 5% compared to 3Q20 |
| --- | --- |
Asset Management
| - | Adjusted pre-tax income, excluding significant items*, of CHF 115 million, down 18% year on year, reflecting higher performance fees, especially in Equities, alongside reduced expenses, offset by significantly lower investment & partnership income as well as lower management fees |
|---|---|
| - | Adjusted net revenues, excluding significant items*, of CHF 392 million, down 13% year on year |
| --- | --- |
| - | Adjusted* total operating expenses were CHF 283 million, down 8% |
| --- | --- |
| - | NNA of CHF 6.3 billion in 4Q20 |
| --- | --- |
| - | AuM of CHF 440 billion at the end of 4Q20, flat compared to 3Q20 |
| --- | --- |
Asia Pacific (APAC)
| APAC reported results<br><br><br><br>(in CHF million) | 4Q20 | 4Q19 | ∆4Q19 | FY20 | FY19 | ∆FY19 |
|---|---|---|---|---|---|---|
| Net revenues | 784 | 750 | 5% | 3,155 | 3,029 | 4% |
| Provision for credit losses | 6 | 14 | - | 236 | 55 | - |
| Total operating expenses | 541 | 535 | 1% | 2,091 | 2,052 | 2% |
| Pre-tax income | 237 | 201 | 18% | 828 | 922 | (10)% |
| Cost/income ratio (%) | 69 | 71 | - | 66 | 68 | - |
| APAC adjusted results, excluding significant items*<br><br><br><br>(in CHF million) | 4Q20 | 4Q19 | ∆4Q19 | FY20 | FY19 | ∆FY19 |
| --- | --- | --- | --- | --- | --- | --- |
| Net revenues | 746 | 750 | (1)% | 3,092 | 2,931 | 5% |
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|---|---|---|---|---|---|---|
| Provision for credit losses | 6 | 14 | - | 236 | 55 | - |
| --- | --- | --- | --- | --- | --- | --- |
| Total operating expenses | 539 | 535 | 1% | 2,087 | 2,052 | 2% |
| Pre-tax income | 201 | 201 | - | 769 | 824 | (7)% |
| Cost/income ratio (%) | 72 | 71 | - | 67 | 70 | - |
FY20 Results
| - | Reported pre-tax income of CHF 828 million, down 10% year on year, mainly due to higher provision for credit losses, partially offset by higher net revenues |
|---|---|
| - | Adjusted pre-tax income, excluding significant items*, of CHF 769 million, down 7% year on year, driven by higher credit provisions, as well as negative FX movements of CHF 45 million |
| --- | --- |
| - | Record adjusted net revenues, excluding significant items*, of CHF 3.1 billion, since the creation of the division; driven by higher transaction-based revenues up 17% year on year, primarily driven higher revenues from GTS, client activity, structured equity origination revenues and equity underwriting revenues, partially offset by lower financing revenues which included unrealized mark-to-market losses on our fair valued portfolio |
| --- | --- |
| - | Adjusted* total operating expenses of CHF 2.1 billion, up 2% year on year |
| --- | --- |
| - | Adjusted return on regulatory capital, excluding significant items*, of 20% and an adjusted cost/income ratio, excluding significant items*, of 67% |
| --- | --- |
| - | APAC advisory, underwriting and financing maintained a top 3 ranking in terms of share of wallet^14^ in 2020 |
| --- | --- |
| - | NNA of CHF 8.6 billion |
| --- | --- |
| - | Asia Pacific regional revenues^15^ of CHF 4.2 billion, up 17% year on year, excluding significant items*^16^, and representing 20% of the bank’s net revenues; reflects diversified APAC country footprint and higher contribution from the Greater China region, as well as strong collaboration with global investment banking businesses |
| --- | --- |
4Q20 Results
| - | Adjusted pre-tax income, excluding significant items*, of CHF 201 million, flat year on year, with adjusted return on regulatory capital, excluding significant items*, of 23% |
|---|---|
| - | Continued to record sequentially lower provision for credit losses in each quarter of 2020, and recorded CHF 6 million in 4Q20 |
| --- | --- |
| - | Net interest income down 27% year on year and recurring commissions and fees down 5%. Transaction and performance-based revenues were up 28%, primarily due to higher financing revenues, which were driven by unrealized mark-to-market gains on our fair valued portfolio and higher structured equity origination revenues |
| --- | --- |
| - | Asia Pacific regional revenues were up 2% year on year, excluding the Allfunds Group revaluation gain*^17^, and represented 19% of the bank’s net revenues |
| --- | --- |
| - | Net outflows of CHF 1.1 billion in 4Q20 |
| --- | --- |
| - | Record client business volumes at CHF 354 billion, up 6% compared to 3Q20, supported by higher mandates and fund penetration levels |
| --- | --- |
Investment Bank (IB)
| IB reported results<br><br><br><br>(in USD million) | 4Q20 | 4Q19 | ∆4Q19 | 2020 | 2019 | ∆2019 |
|---|---|---|---|---|---|---|
| Net revenues | 2,337 | 1,977 | 18% | 9,718 | 8,216 | 18% |
| Provision for credit losses | 42 | 69 | - | 489 | 105 | - |
| Total operating expenses | 1,977 | 1,851 | 7% | 7,469 | 7,078 | 6% |
| Pre-tax income/loss | 318 | 57 | - | 1,760 | 1,033 | 70% |
| Cost/income ratio (%) | 85 | 94 | - | 77 | 86 | - |
| IB adjusted results*<br><br><br><br>(in USD million) | 4Q20 | 4Q19 | ∆4Q19 | 2020 | 2019 | ∆2019 |
| --- | --- | --- | --- | --- | --- | --- |
| Net revenues | 2,337 | 1,970 | 19% | 9,718 | 8,209 | 18% |
| Provision for credit losses | 42 | 69 | - | 489 | 105 | - |
| Total operating expenses | 1,938 | 1,804 | 7% | 7,347 | 7,000 | 5% |
| Pre-tax income/loss | 357 | 97 | - | 1,882 | 1,104 | 70% |
| Cost/income ratio (%) | 83 | 92 | - | 76 | 85 | - |
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FY20 Results
| - | Reported pre-tax income of USD 1.8 billion, up 70% year on year reflecting broad based growth across all products |
|---|---|
| - | Adjusted* pre-tax income of USD 1.9 billion, up 70% year on year, with an adjusted* return on regulatory capital of 13%, highlighting the strength of our diversified and de-risked franchise |
| --- | --- |
| - | Net revenues of USD 9.7 billion, increased 18% year on year |
| --- | --- |
| - | Adjusted* total operating expenses of USD 7.3 billion increased 5% year on year, reflecting higher compensation and benefits and general and administrative costs. Reported operating expenses included restructuring expenses of USD 52 million |
| --- | --- |
| - | Provision for credit losses of USD 489 million increased compared to 2019, reflecting the application of the CECL methodology, as well as the negative developments in our corporate lending portfolio across various industries |
| --- | --- |
Fixed Income Sales and Trading
| - | Revenues of USD 4.3 billion, up 26% year on year, were driven by strong growth in our GTS business, increased revenues across macro and emerging markets and higher client activity in our market-leading credit franchise |
|---|
Equity Sales and Trading
| - | Revenues of USD 2.6 billion, up 12% year on year, reflected higher cash equities and equity derivatives trading activity due to increased volatility and trading volumes |
|---|
Capital Markets
| - | Revenues of USD 2.5 billion, up 36% year on year, driven by strong performance in equity capital markets as well as higher debt capital markets revenues |
|---|---|
| - | Equity capital markets revenues more than doubled due to significantly higher IPO activity resulting in a number 1 ranking^18^ in IPOs. In addition, debt capital markets revenues increased year on year, driven by higher investment grade activity |
| --- | --- |
Advisory
| - | Advisory revenues of USD 645 million, increased 7% year on year, driven by increased M&A deal completions |
|---|
4Q20 Results
Fixed Income Sales and Trading
| - | Revenues of USD 788 million, flat compared to a strong prior year, reflecting continued strength in our credit franchise and higher emerging markets revenues, partially offset by lower macro results |
|---|
Equity Sales and Trading
| - | Revenues of USD 555 million, up 5% year on year, reflected strength in cash equities and equity derivatives |
|---|
Capital Markets
| - | Revenues of USD 843 million, up 90% year on year, were driven by outperformance in equity capital markets and higher debt issuance activity |
|---|
Advisory
| - | Revenues of USD 199 million increased 16% year on year, driven by increased M&A deal completions |
|---|
MEASURES TO OVERCOME THE COVID-19 PANDEMIC AND OUR ONGOING COMMITMENT TO OUR EMPLOYEES
In this troubled environment, we continued to stay close to our clients, communities and employees, supporting them through unprecedented challenges. Over the course of 2020, we launched a variety of initiatives to mitigate the impact of the pandemic, and:
| - | Supported our clients throughout the COVID-19 pandemic by driving our digital transformation globally; in 2020, we doubled our network bandwidth and secured ~50K licenses for Zoom to ensure connectivity to clients |
|---|---|
| - | Provided enhanced digital solutions: In SUB, over the last two years, use of Online Banking has grown by approximately 47%, while the use of Mobile Banking has more than doubled, with the COVID-19 pandemic further accelerating these trends |
| --- | --- |
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| - | Supported SMEs and the Swiss economy by processing ~CHF 3 billion of COVID-19 bridging loans, on which we did not generate any profits. If we should generate a profit in the future, we will donate any net profit generated to projects to support Swiss companies that are facing difficulties. We also set up an additional credit facility of CHF 500 million made available in January 2021 |
| --- | --- |
| - | Launched a global donation matching campaign to encourage employee donations to charities, including those working to alleviate the impact of the COVID-19 pandemic and to support those affected by inequality. In total, we raised ~CHF 25 million, benefitting ~1,400 charitable organizations |
| --- | --- |
| - | Announced a new mandate with regards to diversity and inclusion at Credit Suisse that included, ambitions relating to gender as well as Black Talent representation as well as board level and senior leadership engagement |
| --- | --- |
| - | Increased remote work readiness level to ~90%, globally, with ~65% of employees working from home, on average over the course of the year^19^ |
| --- | --- |
| - | Launched an initiative to explore new ways of working, with Switzerland being the first pilot market of a broader study; ~3,800 colleagues participated in the study |
| --- | --- |
| - | Offered free antibody testing program for Credit Suisse employees, and more than 8,600 employees tested voluntarily |
| --- | --- |
| - | Extended paid family leave to employees, indefinitely, in locations where schools remain closed or where they will be closed again – this continues into 2021. In 2020, more than 3,000 colleagues, globally, took up paid family leave |
| --- | --- |
In line with our mandate focused on diversity and inclusion, outlined at our 3Q20 results, in January 2021, we became a signatory of The Valuable 500 Commitment Statement and created an internal taskforce focused on furthering our inclusivity of colleagues with disabilities.
ONGOING COMMITMENT TO SUSTAINABILITY AND PROGRESS UPDATE ON SRI
Credit Suisse’s commitment to Sustainability was a key focus of the Group’s strategy in 2020.
In July, we announced the establishment of Sustainability, Research & Investment Solutions (SRI), a new ExB function led by Lydie Hudson, to express our commitment to becoming a leader in Sustainability in the financial industry, across our Wealth Management-related and Investment Bank franchises. At the same time, we also introduced a new Board of Directors mandate, naming Iris Bohnet as Board of Directors Sustainability Leader, to enable and help supervise our Sustainability agenda.
In 2020, we have made significant progress towards our ambition, both by outlining our strategic Sustainability roadmap along five key pillars, as well as by implementing specific, targeted measures to support the transition of clients, including the roll-out of the Client Energy Transition Frameworks (CETF) for the priority sectors oil and gas, coal mining, and utilities/power generation. The CETF are a key part of the bank’s Climate Risk Strategy program and serve to assess the energy transition readiness of corporate clients in these sectors.
As a consequence of our efforts across divisions in relation to driving sustainability, we were once again selected as an index component of both the Dow Jones Sustainability World Index and the Dow Jones Sustainability Europe Index, when S&P Dow Jones Indices announced the results of their annual Dow Jones Sustainability Indices (DJSI) rebalancing and reconstitution in November 2020. Furthermore, Carbon Disclosure Project (CDP)’s rating of Credit Suisse’s climate-related disclosure improved to an A-, and Credit Suisse’s MSCI ESG Rating increased to an A.
Finally, at its core, SRI is focused on how we can best deliver returns for our clients now and in the future. On a long-term basis^20^, our Investment Solutions & Products Investment Management Discretionary Mandate strategies performed better than 67% of clients in a non-discretionary strategy portfolio, demonstrating the strength of our expertise and talented teams who guided clients through a challenging and uncertain environment.
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CONTACT DETAILS
| Kinner Lakhani, Investor Relations, Credit Suisse<br><br><br><br>Tel: +41 44 333 71 49<br><br><br><br>Email: investor.relations@credit-suisse.com |
|---|
| Katrin Schaad, Corporate Communications, Credit Suisse<br><br><br><br>Tel: +41 844 33 88 44<br><br><br><br>Email: media.relations@credit-suisse.com |
| The Earnings Release and Presentation Slides for FY20/4Q20 are available to download from 06:45 CET today at: https://www.credit-suisse.com/results |
PRESENTATION OF FY20/4Q20 RESULTS – THURSDAY, FEBRUARY 18, 2021
| Event | Analyst Call | Media Call |
|---|---|---|
| Time | 08:15 Zurich<br><br><br><br>07:15 London<br><br><br><br>02:15 New York | 10:30 Zurich<br><br><br><br>09:30 London<br><br><br><br>04:30 New York |
| Language | English | English |
| Access | Switzerland: +41 44 580 48 67<br><br><br><br>Europe: +44 203 057 6528<br><br><br><br>US: +1 866 276 8933<br><br><br><br><br><br><br><br>Reference: Credit Suisse Analysts and Investors Call<br><br><br><br><br><br><br><br>Conference ID: 9829358<br><br><br><br><br><br><br><br>Please dial in 10 minutes before the start of the call<br><br><br><br><br><br><br><br>Webcast link here. | Switzerland: +41 44 580 48 67<br><br><br><br>Europe: +44 203 057 6528<br><br><br><br>US: +1 866 276 8933<br><br><br><br><br><br><br><br>Reference: Credit Suisse Media Call<br><br><br><br><br><br><br><br>Conference ID: 4138828<br><br><br><br><br><br><br><br>Please dial in 10 minutes before the start of the call<br><br><br><br><br><br><br><br>Webcast link here. |
| Q&A Session | Following the presentation, you will have the opportunity to ask the speakers questions | Following the presentation, you will have the opportunity to ask the speakers questions |
| Playback | Replay available approximately one hour after the event<br><br><br><br><br><br><br><br>Switzerland: +41 44 580 40 26<br><br><br><br>Europe: +44 333 300 9785<br><br><br><br>US: +1 917 677 7532<br><br><br><br><br><br><br><br>Conference ID: 9829358 | Replay available approximately one hour after the event<br><br><br><br><br><br><br><br>Switzerland: +41 44 580 40 26<br><br><br><br>Europe: +44 333 300 9785<br><br><br><br>US: +1 917 677 7532<br><br><br><br><br><br><br><br>Conference ID: 4138828 |
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* Refers to adjusted results, results excluding significant items and results on a constant FX rate basis as applicable. Results excluding items included in our reported results are non-GAAP financial measures. For a reconciliation to the most directly comparable US GAAP measures, see the Appendix of this Media Release. Significant items include the gain related to the transfer of the InvestLab fund platform to Allfunds Group in 3Q19 and 1Q20, the gain related to the equity investment revaluation of Allfunds Group in 4Q20, the gain related to the equity investment revaluation of SIX in 4Q19 and in 4Q20, the gain related to the equity investment revaluation of Pfandbriefbank in 2Q20 and the impairment to the valuation of our non-controlling interest in York Capital Management
Footnotes
^1^ In 4Q20 and 3Q20 leverage exposure excludes CHF 111 billion and CHF 110 billion, respectively, of central bank reserves, after adjusting for the dividend paid in 2020, as permitted by FINMA. Including cash held at central banks, our Tier 1 leverage ratio would have been 5.6% for both 4Q20 and 3Q20.
^2^ Includes capital markets revenues and advisory and other fees within global investment banking
^3^ Full savings expected from 2022 onwards; allow for reinvestment in full, subject to market and economic conditions
^4^ Post dividends, share buybacks and potential impact from RWA methodology changes
^5^ Including CHF 716 million of dividends and CHF 325 million of share buybacks
^6^ Subject to market and economic conditions
^7^ Includes capital markets revenues and advisory and other fees within global investment banking
^8^ Includes capital markets revenues and advisory and other fees within global investment banking
^9^ Includes capital markets revenues and advisory and other fees within global investment banking
^10^ In 4Q20 and 3Q20 leverage exposure excludes CHF 111 billion and CHF 110 billion, respectively, of central bank reserves, after adjusting for the dividend paid in 2020, as permitted by FINMA. Including cash held at central banks, our Tier 1 leverage ratio would have been 5.6% for both 4Q20 and 3Q20.
^11^ In 4Q20 and 3Q20 leverage exposure excludes CHF 111 billion and CHF 110 billion, respectively, of central bank reserves, after adjusting for the dividend paid in 2020, as permitted by FINMA. Including cash held at central banks, our Tier 1 leverage ratio would have been 5.6% for both 4Q20 and 3Q20.
^12^ Includes capital markets revenues and advisory and other fees within global investment banking
^13^ Subject to market and economic conditions
^14^ Source: Dealogic for the period ending December 31, 2020 (APAC excluding Japan and China onshore among international banks)
^15^ Reflects net revenues of the APAC division and includes revenues related to the Asia Pacific region recognized in the Investment Bank and International Wealth Management
^16^ Excluding a gain of CHF 98 million in 3Q19 and a gain of CHF 25 million in 1Q20 related to the transfer of InvestLab to AllFunds Group and a gain of CHF 38 million in 4Q20 related to the equity investment revaluation of Allfunds Group
^17^ Excluding a gain of CHF 38 million in 4Q20 related to the equity investment revaluation of Allfunds Group
^18^^^Source: Dealogic based on volumes for the period ending December 31, 2020 (Americas and EMEA only)
^19^ Data from beginning of 2Q20 until the end of 4Q20 is considered for the calculation of the annual average
^20^ Performance of discretionary mandates vs. non-discretionary client portfolios (December 31, 2017 to December 31, 2020) of PB clients in SUB, IWM and APAC that are booked in Switzerland; these are not limited to ESG or Sustainable specific mandates
Abbreviations
AGM – Annual General Meeting; APAC – Asia Pacific; AuM – assets under management; BCBS – Basel Committee on Banking Supervision; BIS – Bank for International Settlements; CECL – US GAAP accounting standard for current expected credit losses; CET1 – common equity tier 1; CHF – Swiss francs; C&IC – Corporate & Institutional Clients; CRCO – Chief Risk and Compliance Officer; DCM – Debt Capital Markets; ECM – Equity Capital Markets; EMEA – Europe, Middle East, Africa; ExB – Executive Board; FINMA – Swiss Financial Market Supervisory Authority FINMA; FX – Foreign Exchange; FXC – Foreign Exchange Constant; GAAP – Generally accepted accounting principles; GTS – Global Trading Solutions; IB – Investment Bank; IPO – Initial Public Offering; ITS – International Trading Solutions; IWM – International Wealth Management; NAB– Neue Aargauer Bank; M&A – Mergers & Acquisitions; NNA – net new assets; PB – Private Banking; PC – Private Clients; PTI – Pre-Tax Income; RM – Relationship Manager; RMBS – Residential Mortgage Backed Securities; RoRC – Return on Regulatory Capital; RoTE – Return on Tangible Equity; RWA – risk weighted assets; SEC – U.S. Securities and Exchange Commission; SME – Small and Medium Enterprises; SRI – Sustainability, Research & Investment Solutions; SUB – Swiss Universal Bank; US – United States; USD – US dollar.
Important information
This document contains select information from the full 4Q20 Earnings Release and 4Q20 Results Presentation slides that Credit Suisse believes is of particular interest to media professionals. The complete 4Q20 Earnings Release and 4Q20 Results Presentation slides, which have been distributed simultaneously, contain more comprehensive information about our results and
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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 4Q20 Earnings Release and 4Q20 Results Presentation slides are not incorporated by reference into this document.
Credit Suisse has not finalized its 2020 Annual Report and Credit Suisse’s independent registered public accounting firm has not completed its audit of the consolidated financial statements for the period. Accordingly, the financial information contained in this presentation is subject to completion of year-end procedures, which may result in changes to that information.
This document contains certain unaudited interim financial information for the first quarter of 2021. This information has been derived from management accounts, is preliminary in nature, does not reflect the complete results of the first quarter of 2021 and is subject to change, including as a result of any normal quarterly adjustments in relation to the financial statements for the first quarter of 2021. This information has not been subject to any review by our independent registered public accounting firm. There can be no assurance that the final results for these periods will not differ from these preliminary results, and any such differences could be material. Quarterly financial results for the first quarter of 2021 will be included in our 1Q21 Financial Report. These interim results of operations are not necessarily indicative of the results to be achieved for the remainder of the full first quarter of 2021.
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 (including macroeconomic and other challenges and uncertainties, for example, resulting from the COVID-19 pandemic), 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, challenges and uncertainties resulting from the COVID-19 pandemic, 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 document, 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 document 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.
Our estimates, ambitions, objectives and targets often include metrics that are non-GAAP financial measures and are unaudited. A reconciliation of the estimates, ambitions, objectives and targets to the nearest GAAP measures is unavailable without unreasonable efforts. Adjusted results exclude goodwill impairment, major litigation provisions, real estate gains and other revenue and expense items included in our reported results, all of which are unavailable on a prospective basis. Return on tangible equity is based on tangible shareholders' equity (also known as tangible book value), a non-GAAP financial measure, which is calculated by deducting goodwill and other intangible assets from total shareholders' equity as presented in our balance sheet, both of which are unavailable on a prospective basis. Return on regulatory capital (a non-GAAP financial measure) is calculated using income / (loss) after tax and assumes a tax rate of 25% and capital allocated based on the average of 10% of risk-weighted assets and 3.5% of leverage exposure; the essential components of this calculation are unavailable on a prospective basis. Such estimates, ambitions, objectives and targets are calculated in a manner that is consistent with the accounting policies applied by us in preparing our financial statements.
Return on tangible equity, a non-GAAP financial measure, is calculated as annualized net income attributable to shareholders divided by average tangible shareholders’ equity. Tangible shareholders’ equity, a non-GAAP financial measure, is calculated by deducting goodwill and other intangible assets from total shareholders’ equity as presented in our balance sheet. Management believes that return on tangible equity is meaningful as it is a measure used and relied upon by industry analysts and investors to assess valuations and capital adequacy. For end-4Q20, tangible shareholders’ equity excluded goodwill of CHF 4,426 million and other intangible assets of CHF 237 million from total shareholders’ equity of CHF 42,677 million as presented in our balance sheet. For end-3Q20, tangible shareholders’ equity excluded goodwill of CHF 4,577 million and other intangible assets of CHF 256 million from total shareholders’ equity of CHF 45,740 million as presented in our balance sheet.
Prior to 3Q20, regulatory capital was calculated as the worst of 10% of RWA and 3.5% of leverage exposure, and return on regulatory capital (a non-GAAP financial measure) was calculated using income / (loss) after tax and assumed a tax rate of 30%. In 3Q20, we updated our calculation approach, following which regulatory capital is calculated as the average of 10% of RWA and 3.5% of leverage exposure and return on regulatory capital (a non-GAAP financial measure) is calculated using income / (loss) after tax and assumes a tax rate of 30% for periods prior to 2020 and 25% from 2020 onward. For periods in 2020, for purposes of calculating Group return on regulatory capital, leverage exposure excludes cash held at central banks, after adjusting
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for the dividend paid in 2020. For the Investment Bank division, 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.
Foreign exchange impact is calculated by converting the CHF amount of net revenues, provision for credit losses and operating expenses for 2020 back to the original currency on a monthly basis at the respective spot foreign exchange rate. The respective amounts are then converted back to CHF applying the average 2019 foreign exchange rate from the period against which the foreign exchange impact is measured. Average foreign exchange rates apply a straight line average of monthly foreign exchange rates for major currencies.
Client business volume includes assets under management, custody assets and net loans.
Credit Suisse is subject to the Basel III framework, as implemented in Switzerland, as well as Swiss legislation and regulations for systemically important banks, which include capital, liquidity, leverage and large exposure requirements and rules for emergency plans designed to maintain systemically relevant functions in the event of threatened insolvency. Credit Suisse has adopted the Bank for International Settlements (BIS) leverage ratio framework, as issued by the Basel Committee on Banking Supervision (BCBS) and implemented in Switzerland by the Swiss Financial Market Supervisory Authority FINMA (FINMA).
Unless otherwise noted, all CET1 capital, CET1 ratio, Tier-1 leverage ratio, risk-weighted assets and leverage exposure figures in this document are as of the end of the respective period and, for periods prior to 2019, on a “look-through” basis.
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 tier 1 leverage ratio and CET1 leverage ratio are calculated as 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. Unless otherwise noted, for periods in 2020, leverage exposure excludes cash held at central banks, after adjusting for the dividend paid in 2020.
Mandate penetration reflects advisory and discretionary mandate volumes as a percentage of assets under management, excluding those from the external asset manager business.
Pre-provision profit refers to the pre-tax income, excluding provision for credit losses.
References to Wealth Management mean SUB PC, IWM PB and APAC or their combined results. References to Wealth Management-related mean SUB, IWM and APAC or their combined results. References to global investment banking mean the Investment Bank, APAC advisory and underwriting as well as M&A, DCM and ECM in SUB C&IC. References to Global Trading Solutions, prior to 3Q20, mean the combination of ITS and APAC Solutions.
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 document.
Information referenced in this document, whether via website links or otherwise, is not incorporated into this document.
Certain material in this document has been prepared by Credit Suisse on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. Credit Suisse has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness or reliability of such information.
In various tables, use of “–” indicates not meaningful or not applicable.
The English language version of this document is the controlling version.
Page 14
| Appendix |
|---|
Appendix
| Key metrics | ||||||||
|---|---|---|---|---|---|---|---|---|
| in / end of | % change | in / end of | % change | |||||
| 4Q20 | 3Q20 | 4Q19 | QoQ | YoY | 2020 | 2019 | YoY | |
| Credit Suisse Group results (CHF million) ^^ | ||||||||
| Net revenues^^ | 5,221 | 5,198 | 6,190 | 0 | (16) | 22,389 | 22,484 | 0 |
| Provision for credit losses^^ | 138 | 94 | 146 | 47 | (5) | 1,096 | 324 | 238 |
| Compensation and benefits | 2,539 | 2,441 | 2,590 | 4 | (2) | 9,890 | 10,036 | (1) |
| General and administrative expenses | 2,279 | 1,458 | 1,916 | 56 | 19 | 6,523 | 6,128 | 6 |
| Commission expenses | 303 | 295 | 324 | 3 | (6) | 1,256 | 1,276 | (2) |
| Restructuring expenses | 50 | 107 | – | – | – | 157 | – | – |
| Total other operating expenses | 2,632 | 1,860 | 2,240 | 42 | 18 | 7,936 | 7,404 | 7 |
| Total operating expenses^^ | 5,171 | 4,301 | 4,830 | 20 | 7 | 17,826 | 17,440 | 2 |
| Income/(loss) before taxes^^ | (88) | 803 | 1,214 | – | – | 3,467 | 4,720 | (27) |
| Net income/(loss) attributable to shareholders^^ | (353) | 546 | 852 | – | – | 2,669 | 3,419 | (22) |
| Statement of operations metrics (%) ^^ ^^ | ||||||||
| Return on regulatory capital | (0.9) | 8.3 | 11.0 | – | – | 8.9 | 10.9 | – |
| Balance sheet statistics (CHF million) ^^ | ||||||||
| Total assets | 805,822 | 821,296 | 787,295 | (2) | 2 | 805,822 | 787,295 | 2 |
| Risk-weighted assets | 275,084 | 285,216 | 290,463 | (4) | (5) | 275,084 | 290,463 | (5) |
| Leverage exposure | 799,853 | 824,420 | 909,994 | (3) | (12) | 799,853 | 909,994 | (12) |
| Assets under management and net new assets (CHF billion) ^^ | ||||||||
| Assets under management | 1,511.9 | 1,478.3 | 1,507.2 | 2.3 | 0.3 | 1,511.9 | 1,507.2 | 0.3 |
| Net new assets | 8.4 | 18.0 | 9.9 | (53.3) | (15.2) | 42.0 | 79.3 | (47.0) |
| Basel III regulatory capital and leverage statistics (%) ^^ | ||||||||
| CET1 ratio | 12.9 | 13.0 | 12.7 | – | – | 12.9 | 12.7 | – |
| CET1 leverage ratio | 4.4 | 4.5 | 4.0 | – | – | 4.4 | 4.0 | – |
| Tier 1 leverage ratio | 6.4 | 6.3 | 5.5 | – | – | 6.4 | 5.5 | – |
Page A-1
| Appendix |
|---|
Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures.
| Reconciliation of adjusted results | ||||
|---|---|---|---|---|
| Group | ||||
| in | 4Q20 | 4Q19 | 2020 | 2019 |
| Adjusted results (CHF million) ^^ | ||||
| Net revenues^^ | 5,221 | 6,190 | 22,389 | 22,484 |
| Real estate (gains)/losses^^ | (15) | (146) | (15) | (251) |
| (Gains)/losses on business sales^^ | 0 | 2 | 0 | 2 |
| Adjusted net revenues^^ | 5,206 | 6,046 | 22,374 | 22,235 |
| Provision for credit losses^^ | 138 | 146 | 1,096 | 324 |
| Total operating expenses^^ | 5,171 | 4,830 | 17,826 | 17,440 |
| Restructuring expenses^^ | (50) | – | (157) | – |
| Major litigation provisions^^ | (757) | (326) | (988) | (389) |
| Expenses related to real estate disposals^^ | (28) | (57) | (51) | (108) |
| Adjusted total operating expenses^^ | 4,336 | 4,447 | 16,630 | 16,943 |
| Income/(loss) before taxes^^ | (88) | 1,214 | 3,467 | 4,720 |
| Total adjustments^^ | 820 | 239 | 1,181 | 248 |
| Adjusted income before taxes^^ | 732 | 1,453 | 4,648 | 4,968 |
Page A-2
| Appendix | ||||
|---|---|---|---|---|
| Reconciliation of adjustment items | ||||
| --- | --- | --- | --- | --- |
| Group | ||||
| in | 4Q20 | 4Q19 | 2020 | 2019 |
| Adjusted results excluding significant items (CHF million) ^^ | ||||
| Net revenues^^ | 5,221 | 6,190 | 22,389 | 22,484 |
| Real estate (gains)/losses^^ | (15) | (146) | (15) | (251) |
| (Gains)/losses on business sales^^ | 0 | 2 | 0 | 2 |
| Adjusted net revenues^^ | 5,206 | 6,046 | 22,374 | 22,235 |
| of which gain related to InvestLab transfer^^ | 0 | 0 | 268 | 327 |
| of which gain on equity investment in Allfunds Group^^ | 127 | 0 | 127 | 0 |
| of which gain on equity investment in SIX Group AG^^ | 158 | 498 | 158 | 498 |
| of which gain on equity investment in Pfandbriefbank^^ | 0 | 0 | 134 | 0 |
| of which impairment on York Capital Management^^ | (414) | 0 | (414) | 0 |
| Adjusted net revenues excluding significant items^^ | 5,335 | 5,548 | 22,101 | 21,410 |
| Provision for credit losses^^ | 138 | 146 | 1,096 | 324 |
| Total operating expenses^^ | 5,171 | 4,830 | 17,826 | 17,440 |
| Restructuring expenses^^ | (50) | – | (157) | – |
| Major litigation provisions^^ | (757) | (326) | (988) | (389) |
| Expenses related to real estate disposals^^ | (28) | (57) | (51) | (108) |
| Adjusted total operating expenses^^ | 4,336 | 4,447 | 16,630 | 16,943 |
| Income before taxes^^ | (88) | 1,214 | 3,467 | 4,720 |
| Total adjustments and significant items^^ | 949 | (259) | 908 | (577) |
| Adjusted income before taxes excluding significant items^^ | 861 | 955 | 4,375 | 4,143 |
| Group | ||||
| --- | --- | --- | --- | --- |
| in | 4Q20 | 4Q19 | 202 | 2019 |
| Adjusted results excluding significant items and FX impact (CHF million) ^^ | ||||
| Adjusted net revenues^^ | 5,206 | 6,046 | 22,374 | 22,235 |
| of which gain related to InvestLab transfer^^ | 0 | 0 | 268 | 327 |
| of which gain on equity investment in Allfunds Group^^ | 127 | 0 | 127 | 0 |
| of which gain on equity investment in SIX Group AG^^ | 158 | 498 | 158 | 498 |
| of which gain on equity investment in Pfandbriefbank^^ | 0 | 0 | 134 | 0 |
| of which impairment on York Capital Management^^ | (414) | 0 | (414) | 0 |
| of which FX impact^^ | 368 | – | 1,134 | – |
| Adjusted net revenues excluding FX impact^^ | 5,703 | 5,548 | 23,235 | 21,410 |
| Adjusted income before taxes^^ | 861 | 955 | 4,375 | 4,143 |
| of which FX impact^^ | 108 | – | 287 | – |
| Adjusted income before taxes excluding significant items and FX impact^^ | 969 | 955 | 4,662 | 4,143 |
Page A-3
| Appendix | ||||||||
|---|---|---|---|---|---|---|---|---|
| Swiss Universal Bank | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| in / end of | % change | in / end of | % change | |||||
| 4Q20 | 3Q20 | 4Q19 | QoQ | YoY | 2020 | 2019 | YoY | |
| Results (CHF million) ^^ | ||||||||
| Net revenues^^ | 1,393 | 1,294 | 1,734 | 8 | (20) | 5,615 | 5,905 | (5) |
| of which Private Clients^^ | 750 | 700 | 968 | 7 | (23) | 3,055 | 3,186 | (4) |
| of which Corporate & Institutional Clients^^ | 643 | 594 | 766 | 8 | (16) | 2,560 | 2,719 | (6) |
| Provision for credit losses^^ | 66 | 52 | 43 | 27 | 53 | 270 | 109 | 148 |
| Total operating expenses^^ | 840 | 812 | 824 | 3 | 2 | 3,241 | 3,223 | 1 |
| Income before taxes^^ | 487 | 430 | 867 | 13 | (44) | 2,104 | 2,573 | (18) |
| of which Private Clients^^ | 257 | 200 | 474 | 29 | (46) | 1,080 | 1,282 | (16) |
| of which Corporate & Institutional Clients^^ | 230 | 230 | 393 | 0 | (41) | 1,024 | 1,291 | (21) |
| Metrics (%) ^^ | ||||||||
| Return on regulatory capital | 15.8 | 13.8 | 26.9 | – | – | 17.1 | 20.2 | – |
| Cost/income ratio | 60.3 | 62.8 | 47.5 | – | – | 57.7 | 54.6 | – |
| Private Clients ^^ | ||||||||
| Assets under management (CHF billion) | 208.6 | 205.0 | 217.6 | 1.8 | (4.1) | 208.6 | 217.6 | (4.1) |
| Net new assets (CHF billion) | (2.1) | 2.0 | (0.5) | – | – | (5.9) | 3.4 | – |
| Gross margin (annualized) (bp) | 146 | 138 | 179 | – | – | 149 | 150 | – |
| Net margin (annualized) (bp) | 50 | 39 | 87 | – | – | 53 | 60 | – |
| Corporate & Institutional Clients ^^ | ||||||||
| Assets under management (CHF billion) | 462.6 | 441.0 | 436.4 | 4.9 | 6.0 | 462.6 | 436.4 | 6.0 |
| Net new assets (CHF billion) | 3.8 | 3.5 | 2.5 | – | – | 13.7 | 45.3 | – |
| Reconciliation of adjustment items | ||||||||
| --- | --- | --- | --- | --- | --- | |||
| Swiss Universal Bank | ||||||||
| in | 4Q20 | 3Q20 | 4Q19 | 2020 | 2019 | |||
| Adjusted results excluding significant items (CHF million) ^^ | ||||||||
| Net revenues^^ | 1,393 | 1,294 | 1,734 | 5,615 | 5,905 | |||
| of which real estate gains^^ | 15 | 0 | 106 | 15 | 223 | |||
| of which gain related to InvestLab transfer^^ | 0 | 0 | 0 | 25 | 98 | |||
| of which gain on equity investment in Allfunds Group^^ | 38 | 0 | 0 | 38 | 0 | |||
| of which gain on equity investment in SIX Group^^ | 97 | 0 | 306 | 97 | 306 | |||
| of which gain on equity investment in Pfandbriefbank^^ | 0 | 0 | 0 | 134 | 0 | |||
| Adjusted net revenues excluding significant items^^ | 1,243 | 1,294 | 1,322 | 5,306 | 5,278 | |||
| Provision for credit losses^^ | 66 | 52 | 43 | 270 | 109 | |||
| Total operating expenses^^ | 840 | 812 | 824 | 3,241 | 3,223 | |||
| Restructuring expenses^^ | (3) | (41) | – | (44) | – | |||
| Major litigation provisions^^ | (44) | 0 | 0 | (45) | (3) | |||
| Expenses related to real estate disposals^^ | (3) | 0 | (2) | (3) | (12) | |||
| Adjusted total operating expenses^^ | 790 | 771 | 822 | 3,149 | 3,208 | |||
| Income before taxes^^ | 487 | 430 | 867 | 2,104 | 2,573 | |||
| Total adjustments and significant items^^ | (100) | 41 | (410) | (217) | (612) | |||
| Adjusted income before taxes excluding significant items^^ | 387 | 471 | 457 | 1,887 | 1,961 |
Page A-4
| Appendix | ||||
|---|---|---|---|---|
| Reconciliation of adjustment items | ||||
| --- | --- | --- | --- | --- |
| Swiss Universal Bank – <br>Private Clients | ||||
| in | 4Q20 | 4Q19 | 2020 | 2019 |
| Adjusted results excluding significant items (CHF million) ^^ | ||||
| Net revenues^^ | 750 | 968 | 3,055 | 3,186 |
| of which real estate gains^^ | 15 | 104 | 15 | 221 |
| of which gain on equity investment in SIX Group^^ | 47 | 149 | 47 | 149 |
| of which gain on equity investment in Pfandbriefbank^^ | 0 | 0 | 134 | 0 |
| Adjusted net revenues excluding significant items^^ | 688 | 715 | 2,859 | 2,816 |
| Provision for credit losses^^ | 17 | 11 | 62 | 46 |
| Total operating expenses^^ | 476 | 483 | 1,913 | 1,858 |
| Restructuring expenses^^ | 1 | – | (35) | – |
| Expenses related to real estate disposals^^ | (3) | (1) | (3) | (8) |
| Adjusted total operating expenses^^ | 474 | 482 | 1,875 | 1,850 |
| Income before taxes^^ | 257 | 474 | 1,080 | 1,282 |
| Total adjustments and significant items^^ | (60) | (252) | (158) | (362) |
| Adjusted income before taxes excluding significant items^^ | 197 | 222 | 922 | 920 |
| Reconciliation of adjustment items | ||||
| --- | --- | --- | --- | --- |
| Swiss Universal Bank – <br>Corporate & <br>Institutional Clients | ||||
| in | 4Q20 | 4Q19 | 2020 | 2019 |
| Adjusted results excluding significant items (CHF million) ^^ | ||||
| Net revenues^^ | 643 | 766 | 2,560 | 2,719 |
| of which real estate gains^^ | 0 | 2 | 0 | 2 |
| of which gain related to InvestLab transfer^^ | 0 | 0 | 25 | 98 |
| of which gain on equity investment in Allfunds Group^^ | 38 | 0 | 38 | 0 |
| of which gain on equity investment in SIX Group^^ | 50 | 157 | 50 | 157 |
| Adjusted net revenues excluding significant items^^ | 555 | 607 | 2,447 | 2,462 |
| Provision for credit losses^^ | 49 | 32 | 208 | 63 |
| Total operating expenses^^ | 364 | 341 | 1,328 | 1,365 |
| Restructuring expenses^^ | (4) | – | (9) | – |
| Major litigation provisions^^ | (44) | 0 | (45) | (3) |
| Expenses related to real estate disposals^^ | 0 | (1) | 0 | (4) |
| Adjusted total operating expenses^^ | 316 | 340 | 1,274 | 1,358 |
| Income before taxes^^ | 230 | 393 | 1,024 | 1,291 |
| Total adjustments and significant items^^ | (40) | (158) | (59) | (250) |
| Adjusted income before taxes excluding significant items^^ | 190 | 235 | 965 | 1,041 |
Page A-5
| Appendix | ||||||||
|---|---|---|---|---|---|---|---|---|
| International Wealth Management | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| in / end of | % change | in / end of | % change | |||||
| 4Q20 | 3Q20 | 4Q19 | QoQ | YoY | 2020 | 2019 | YoY | |
| Results (CHF million) ^^ | ||||||||
| Net revenues^^ | 952 | 1,142 | 1,636 | (17) | (42) | 4,837 | 5,816 | (17) |
| of which Private Banking^^ | 974 | 836 | 1,186 | 17 | (18) | 3,747 | 4,181 | (10) |
| of which Asset Management^^ | (22) | 306 | 450 | – | – | 1,090 | 1,635 | (33) |
| Provision for credit losses^^ | 25 | 12 | 17 | 108 | 47 | 110 | 49 | 124 |
| Total operating expenses^^ | 939 | 915 | 989 | 3 | (5) | 3,675 | 3,702 | (1) |
| Income/(loss) before taxes^^ | (12) | 215 | 630 | – | – | 1,052 | 2,065 | (49) |
| of which Private Banking^^ | 293 | 197 | 491 | 49 | (40) | 1,091 | 1,586 | (31) |
| of which Asset Management^^ | (305) | 18 | 139 | – | – | (39) | 479 | – |
| Metrics (%) ^^ | ||||||||
| Return on regulatory capital | (0.9) | 15.7 | 44.5 | – | – | 19.6 | 37.3 | – |
| Cost/income ratio | 98.6 | 80.1 | 60.5 | – | – | 76.0 | 63.7 | – |
| Private Banking ^^ | ||||||||
| Assets under management (CHF billion) | 365.4 | 352.0 | 370.0 | 3.8 | (1.2) | 365.4 | 370.0 | (1.2) |
| Net new assets (CHF billion) | 4.3 | 6.9 | 0.6 | – | – | 16.7 | 11.0 | – |
| Gross margin (annualized) (bp) | 109 | 96 | 128 | – | – | 107 | 115 | – |
| Net margin (annualized) (bp) | 33 | 23 | 53 | – | – | 31 | 44 | – |
| Asset Management ^^ | ||||||||
| Assets under management (CHF billion) | 440.3 | 438.5 | 437.9 | 0.4 | 0.5 | 440.3 | 437.9 | 0.5 |
| Net new assets (CHF billion) | 6.3 | 5.0 | 7.5 | – | – | 15.5 | 21.5 | – |
| Reconciliation of adjustment items | ||||||||
| --- | --- | --- | --- | --- | --- | |||
| International Wealth Management | ||||||||
| in | 4Q20 | 3Q20 | 4Q19 | 2020 | 2019 | |||
| Adjusted results excluding significant items (CHF million) ^^ | ||||||||
| Net revenues^^ | 952 | 1,142 | 1,636 | 4,837 | 5,816 | |||
| of which real estate gains^^ | 0 | 0 | 32 | 0 | 45 | |||
| of which gain related to InvestLab transfer^^ | 0 | 0 | 0 | 218 | 131 | |||
| of which gain on equity investment in Allfunds Group^^ | 51 | 0 | 0 | 51 | 0 | |||
| of which gain on equity investment in SIX Group^^ | 61 | 0 | 192 | 61 | 192 | |||
| of which impairment on York Capital Management^^ | (414) | 0 | 0 | (414) | 0 | |||
| Adjusted net revenues excluding significant items^^ | 1,254 | 1,142 | 1,412 | 4,921 | 5,448 | |||
| Provision for credit losses^^ | 25 | 12 | 17 | 110 | 49 | |||
| Total operating expenses^^ | 939 | 915 | 989 | 3,675 | 3,702 | |||
| Restructuring expenses^^ | (26) | (29) | – | (55) | – | |||
| Major litigation provisions^^ | (1) | (20) | 3 | 11 | 30 | |||
| Expenses related to real estate disposals^^ | (4) | (4) | (9) | (7) | (21) | |||
| Adjusted total operating expenses^^ | 908 | 862 | 983 | 3,624 | 3,711 | |||
| Income/(loss) before taxes^^ | (12) | 215 | 630 | 1,052 | 2,065 | |||
| Total adjustments and significant items^^ | 333 | 53 | (218) | 135 | (377) | |||
| Adjusted income before taxes income excluding significant items^^ | 321 | 268 | 412 | 1,187 | 1,688 |
Page A-6
| Appendix | ||||
|---|---|---|---|---|
| Reconciliation of adjustment items | ||||
| --- | --- | --- | --- | --- |
| International <br>Wealth Management – <br>Private Banking | ||||
| in | 4Q20 | 4Q19 | 2020 | 2019 |
| Adjusted results excluding significant items (CHF million) ^^ | ||||
| Net revenues^^ | 974 | 1,186 | 3,747 | 4,181 |
| of which real estate gains^^ | 0 | 32 | 0 | 45 |
| of which gain related to InvestLab transfer^^ | 0 | 0 | 15 | 131 |
| of which gain on equity investment in Allfunds Group^^ | 51 | 0 | 51 | 0 |
| of which gain on equity investment in SIX Group^^ | 61 | 192 | 61 | 192 |
| Adjusted net revenues excluding significant items^^ | 862 | 962 | 3,620 | 3,813 |
| Provision for credit losses^^ | 31 | 17 | 110 | 48 |
| Total operating expenses^^ | 650 | 678 | 2,546 | 2,547 |
| Restructuring expenses^^ | (21) | – | (37) | – |
| Major litigation provisions^^ | (1) | 3 | 11 | 30 |
| Expenses related to real estate disposals^^ | (3) | (7) | (5) | (17) |
| Adjusted total operating expenses^^ | 625 | 674 | 2,515 | 2,560 |
| Income before taxes^^ | 293 | 491 | 1,091 | 1,586 |
| Total adjustments and significant items^^ | (87) | (220) | (96) | (381) |
| Adjusted income before taxes income excluding significant items^^ | 206 | 271 | 995 | 1,205 |
| Reconciliation of adjustment items | ||||
| --- | --- | --- | --- | --- |
| International <br>Wealth Management – <br>Asset Management | ||||
| in | 4Q20 | 4Q19 | 2020 | 2019 |
| Adjusted results excluding significant items (CHF million) ^^ | ||||
| Net revenues^^ | (22) | 450 | 1,090 | 1,635 |
| of which gain related to InvestLab transfer^^ | 0 | 0 | 203 | 0 |
| of which impairment on York Capital Management^^ | (414) | 0 | (414) | 0 |
| Adjusted net revenues excluding significant items^^ | 392 | 450 | 1,301 | 1,635 |
| Provision for credit losses^^ | (6) | 0 | 0 | 1 |
| Total operating expenses^^ | 289 | 311 | 1,129 | 1,155 |
| Restructuring expenses^^ | (5) | – | (18) | – |
| Expenses related to real estate disposals^^ | (1) | (2) | (2) | (4) |
| Adjusted total operating expenses^^ | 283 | 309 | 1,109 | 1,151 |
| Income/(loss) before taxes^^ | (305) | 139 | (39) | 479 |
| Total adjustments and significant items^^ | 420 | 2 | 231 | 4 |
| Adjusted income before taxes income excluding significant items^^ | 115 | 141 | 192 | 483 |
Page A-7
| Appendix | ||||||||
|---|---|---|---|---|---|---|---|---|
| Asia Pacific | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| in / end of | % change | in / end of | % change | |||||
| 4Q20 | 3Q20 | 4Q19 | QoQ | YoY | 2020 | 2019 | YoY | |
| Results (CHF million) ^^ | ||||||||
| Net revenues^^ | 784 | 728 | 750 | 8 | 5 | 3,155 | 3,029 | 4 |
| Provision for credit losses^^ | 6 | 45 | 14 | (87) | (57) | 236 | 55 | 329 |
| Total operating expenses^^ | 541 | 506 | 535 | 7 | 1 | 2,091 | 2,052 | 2 |
| Income before taxes^^ | 237 | 177 | 201 | 34 | 18 | 828 | 922 | (10) |
| Metrics (%) ^^ | ||||||||
| Return on regulatory capital | 27.0 | 19.4 | 18.4 | – | – | 22.0 | 21.3 | – |
| Cost/income ratio | 69.0 | 69.5 | 71.3 | – | – | 66.3 | 67.7 | – |
| Assets under management (CHF billion) | 221.3 | 218.5 | 220.0 | 1.3 | 0.6 | 221.3 | 220.0 | 0.6 |
| Net new assets (CHF billion) | (1.1) | 2.2 | 0.7 | – | – | 8.6 | 8.7 | – |
| Gross margin (annualized) (bp) | 141 | 135 | 137 | – | – | 147 | 141 | – |
| Net margin (annualized) (bp) | 43 | 33 | 37 | – | – | 39 | 43 | – |
| Reconciliation of adjustment items | ||||||||
| --- | --- | --- | --- | --- | ||||
| Asia Pacific | ||||||||
| in | 4Q20 | 4Q19 | 2020 | 2019 | ||||
| Adjusted results excluding significant items (CHF million) ^^ | ||||||||
| Net revenues^^ | 784 | 750 | 3,155 | 3,029 | ||||
| of which gain related to InvestLab transfer^^ | 0 | 0 | 25 | 98 | ||||
| of which gain on equity investment in Allfunds Groups^^ | 38 | 0 | 38 | 0 | ||||
| Net revenues excluding significant items^^ | 746 | 750 | 3,092 | 2,931 | ||||
| Provision for credit losses^^ | 6 | 14 | 236 | 55 | ||||
| Total operating expenses^^ | 541 | 535 | 2,091 | 2,052 | ||||
| Restructuring expenses^^ | (2) | – | (4) | – | ||||
| Adjusted total operating expenses^^ | 539 | 535 | 2,087 | 2,052 | ||||
| Income before taxes^^ | 237 | 201 | 828 | 922 | ||||
| Total adjustments and significant items^^ | (36) | 0 | (59) | (98) | ||||
| Adjusted income before taxes excluding significant items^^ | 201 | 201 | 769 | 824 | ||||
| of which FX impact^^ | 14 | – | 45 | – | ||||
| Adjusted income before taxes excluding significant items and FX impact^^ | 215 | 201 | 814 | 824 |
Page A-8
| Appendix | ||||
|---|---|---|---|---|
| Reconciliation of adjustment items | ||||
| --- | --- | --- | --- | --- |
| Wealth <br>Management-<br>related | ||||
| in | 4Q20 | 4Q19 | 2020 | 2019 |
| Adjusted results excluding significant items and FX impact (CHF million) ^^ | ||||
| Net revenues^^ | 3,129 | 4,120 | 13,607 | 14,750 |
| of which real estate gains^^ | 15 | 138 | 15 | 268 |
| of which gain related to InvestLab transfer^^ | 0 | 0 | 268 | 327 |
| of which gain on equity investment in Allfunds Group^^ | 127 | 0 | 127 | 0 |
| of which gain on equity investment in SIX Group^^ | 158 | 498 | 158 | 498 |
| of which gain on equity investment in Pfandbriefbank^^ | 0 | 0 | 134 | 0 |
| of which impairment on York Capital Management^^ | (414) | 0 | (414) | 0 |
| of which FX impact^^ | (170) | 0 | (542) | 0 |
| Adjusted net revenues excluding significant items and FX impact^^ | 3,413 | 3,484 | 13,861 | 13,657 |
| Net interest income | 1,203 | 1,394 | 5,019 | 5,242 |
| of which FX impact^^ | (42) | – | (144) | – |
| Net interest income excluding FX impact^^ | 1,245 | 1,394 | 5,163 | 5,242 |
| Recurring commissions and fees | 998 | 1,059 | 3,927 | 4,098 |
| of which FX impact^^ | (51) | – | (162) | – |
| Recurring commissions and fees excluding FX impact^^ | 1,049 | 1,059 | 4,089 | 4,098 |
| Transaction-based revenues | 1,092 | 1,023 | 4,503 | 4,378 |
| of which FX impact^^ | (83) | – | (245) | – |
| Transaction-based revenues excluding FX impact^^ | 1,175 | 1,023 | 4,748 | 4,378 |
Page A-9
| Appendix | ||||||||
|---|---|---|---|---|---|---|---|---|
| Investment Bank | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| in / end of | % change | in / end of | % change | |||||
| 4Q20 | 3Q20 | 4Q19 | QoQ | YoY | 2020 | 2019 | YoY | |
| Results (CHF million) ^^ | ||||||||
| Net revenues^^ | 2,109 | 2,047 | 1,947 | 3 | 8 | 9,098 | 8,161 | 11 |
| Provision for credit losses^^ | 38 | (14) | 67 | – | (43) | 471 | 104 | 353 |
| Total operating expenses^^ | 1,781 | 1,691 | 1,825 | 5 | (2) | 6,972 | 7,031 | (1) |
| Income before taxes^^ | 290 | 370 | 55 | (22) | 427 | 1,655 | 1,026 | 61 |
| Metrics (%) ^^ | ||||||||
| Return on regulatory capital | 8.8 | 11.4 | 1.5 | – | – | 12.2 | 7.1 | – |
| Cost/income ratio | 84.4 | 82.6 | 93.7 | – | – | 76.6 | 86.2 | – |
| Results ( million) | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | |
| Net revenues | 2,245 | 1,977 | 4 | 18 | 9,718 | 8,216 | 18 | |
| Provision for credit losses | (16) | 69 | – | (39) | 489 | 105 | 366 | |
| Total operating expenses | 1,856 | 1,851 | 7 | 7 | 7,469 | 7,078 | 6 | |
| Income before taxes | 405 | 57 | (21) | 458 | 1,760 | 1,033 | 70 |
All values are in US Dollars.
| Reconciliation of adjustment items | |||
|---|---|---|---|
| in | 4Q19 | 2020 | 2019 |
| Adjusted results ( million) | |||
| Net revenues | 1,977 | 9,718 | 8,216 |
| Real estate (gains)/losses | (7) | 0 | (7) |
| Adjusted net revenues | 1,970 | 9,718 | 8,209 |
| Provision for credit losses | 69 | 489 | 105 |
| Total operating expenses | 1,851 | 7,469 | 7,078 |
| Restructuring expenses | – | (52) | – |
| Major litigation provisions | 0 | (25) | 0 |
| Expenses related to real estate disposals | (47) | (45) | (78) |
| Adjusted total operating expenses | 1,804 | 7,347 | 7,000 |
| Income before taxes | 57 | 1,760 | 1,033 |
| Total adjustments | 40 | 122 | 71 |
| Adjusted income before taxes | 97 | 1,882 | 1,104 |
All values are in US Dollars.
| Net revenue detail | |||
|---|---|---|---|
| in | 4Q19 | 2020 | 2019 |
| Net revenue detail ( million) | |||
| Fixed income sales and trading | 789 | 4,266 | 3,374 |
| Equity sales and trading | 529 | 2,571 | 2,291 |
| Capital markets | 443 | 2,539 | 1,873 |
| Advisory and other fees | 172 | 645 | 601 |
| Other revenues | 44 | (303) | 77 |
| Net revenues | 1,977 | 9,718 | 8,216 |
All values are in US Dollars.
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| Appendix | |||
|---|---|---|---|
| Global investment banking revenues | |||
| --- | --- | --- | --- |
| in | 4Q19 | 2020 | 2019 |
| Global investment banking revenues ( million) | |||
| Fixed income sales and trading | 789 | 4,266 | 3,374 |
| Equity sales and trading | 529 | 2,571 | 2,291 |
| Capital markets | 508 | 2,917 | 2,089 |
| Advisory and other fees | 212 | 793 | 752 |
| Other revenues | 44 | (303) | 77 |
| Global investment banking revenues | 2,082 | 10,244 | 8,583 |
All values are in US Dollars.
Page A-11
| Appendix |
|---|
Cautionary statement regarding forward-looking information
This document contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to the following:
■ our plans, targets or goals;
■ our future economic performance or prospects;
■ the potential effect on our future performance of certain contingencies; and
■ assumptions underlying any such statements.
Words such as “believes,” “anticipates,” “expects,” “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, targets, goals, expectations, estimates and intentions expressed in such forward-looking statements and that the COVID-19 pandemic creates significantly greater uncertainty about forward-looking statements in addition to the factors that generally affect our business. These factors include:
■ the ability to maintain sufficient liquidity and access capital markets;
■ market volatility and interest rate fluctuations and developments affecting interest rate levels, including the persistence of a low or negative interest rate environment;
■ the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations, in particular the risk of negative impacts of COVID-19 on the global economy and financial markets and the risk of continued slow economic recovery or downturn in the EU, the US or other developed countries or in emerging markets in 2021 and beyond;
■ the emergence of widespread health emergencies, infectious diseases or pandemics, such as COVID-19, and the actions that may be taken by governmental authorities to contain the outbreak or to counter its impact;
■ potential risks and uncertainties relating to the severity of impacts from COVID-19 and the duration of the pandemic, including potential material adverse effects on our business, financial condition and results of operations;
■ the direct and indirect impacts of deterioration or slow recovery in residential and commercial real estate markets;
■ adverse rating actions by credit rating agencies in respect of us, sovereign issuers, structured credit products or other credit-related exposures;
■ the ability to achieve our strategic goals, including those related to our targets, ambitions and financial goals;
■ the ability of counterparties to meet their obligations to us and the adequacy of our allowance for credit losses;
■ the effects of, and changes in, fiscal, monetary, exchange rate, trade and tax policies;
■ the effects of currency fluctuations, including the related impact on our business, financial condition and results of operations due to moves in foreign exchange rates;
■ political, social and environmental developments, including war, civil unrest or terrorist activity and climate change;
■ the ability to appropriately address social, environmental and sustainability concerns that may arise from our business activities;
■ the effects of, and the uncertainty arising from, the UK’s withdrawal from the EU;
■ the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations;
■ operational factors such as systems failure, human error, or the failure to implement procedures properly;
■ the risk of cyber attacks, information or security breaches or technology failures on our reputation, business or operations, the risk of which is increased while large portions of our employees work remotely;
■ the adverse resolution of litigation, regulatory proceedings and other contingencies;
■ actions taken by regulators with respect to our business and practices and possible resulting changes to our business organization, practices and policies in countries in which we conduct our operations;
■ the effects of changes in laws, regulations or accounting or tax standards, policies or practices in countries in which we conduct our operations;
■ the expected discontinuation of LIBOR and other interbank offered rates and the transition to alternative reference rates;
■ the potential effects of changes in our legal entity structure;
■ competition or changes in our competitive position in geographic and business areas in which we conduct our operations;
■ the ability to retain and recruit qualified personnel;
■ the ability to maintain our reputation and promote our brand;
■ the ability to increase market share and control expenses;
■ technological changes instituted by us, our counterparties or competitors;
■ the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users;
■ acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets; and
■ other unforeseen or unexpected events and our success at managing these and the risks involved in the foregoing.
We caution you that the foregoing list of important factors is not exclusive. When evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, including the information set forth in “Risk factors” in I – Information on the company in our Annual Report 2019 and in “Risk factor” in I – Credit Suisse in our 1Q20 Financial Report.
Page A-12
Analyst and Investor CallThomas Gottstein, Chief Executive OfficerDavid Mathers, Chief Financial OfficerFebruary 18, 2021 Credit SuisseFourth Quarter and Full Year 2020 Results
Disclaimer (1/2) 2 February 18, 2021 Credit Suisse has not finalized its 2020 Annual Report and Credit Suisse's independent registered public accounting firm has not completed its audit of the consolidated financial statements for the period. Accordingly, the financial information contained in this presentation is subject to completion of year-end procedures, which may result in changes to that information.This material does not purport to contain all of the information that you may wish to consider. This material is not to be relied upon as such or used in substitution for the exercise of independent judgment. Cautionary statement regarding forward-looking statements This presentation contains forward-looking statements that 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, targets, goals, expectations, estimates and intentions we express in these forward-looking statements, including those we identify in "Risk factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2019, in “Credit Suisse – Risk factor” in our 1Q20 Financial Report published on May 7, 2020 and in the “Cautionary statement regarding forward-looking information" in our 4Q20 Earnings Release published on February 18, 2021 and 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. 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, challenges and uncertainties resulting from the COVID-19 pandemic, 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. We may not achieve the benefits of our strategic initiativesWe 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 (including macroeconomic and other challenges and uncertainties, for example, resulting from the COVID-19 pandemic), 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. Estimates and assumptionsIn preparing this presentation, 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 presentation 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.RestatementAs of 3Q20, financial information reflects the new divisional reporting structure and management responsibilities announced on July 30, 2020 and updates to certain calculations and allocations. Prior periods have been restated to conform to the current presentation. In light of the restructuring announced on July 30, 2020 and several significant items impacting results in prior periods, we intend to focus on adjusted numbers, excluding significant items in our discussion of results until the restructuring is completed.
Disclaimer (2/2) 3 February 18, 2021 Cautionary statements relating to interim financial informationThis presentation contains certain unaudited interim financial information for the first quarter of 2021. This information has been derived from management accounts, is preliminary in nature, does not reflect the complete results of the first quarter of 2021 and is subject to change, including as a result of any normal quarterly adjustments in relation to the financial statements for the first quarter of 2021. This information has not been subject to any review by our independent registered public accounting firm. There can be no assurance that the final results for these periods will not differ from these preliminary results, and any such differences could be material. Quarterly financial results for the first quarter of 2021 will be included in our 1Q21 Financial Report. These interim results of operations are not necessarily indicative of the results to be achieved for the remainder of the full first quarter of 2021.Statement regarding non-GAAP financial measuresThis presentation contains non-GAAP financial measures, including results excluding certain items included in our reported results as well as return on regulatory capital and return on tangible equity and tangible book value per share (which are both based on tangible shareholders’ equity). Further details and information needed to reconcile such non-GAAP financial measures to the most directly comparable measures under US GAAP can be found in this presentation in the Appendix, which is available on our website at www.credit-suisse.com.Our estimates, ambitions, objectives and targets often include metrics that are non-GAAP financial measures and are unaudited. A reconciliation of the estimates, ambitions, objectives and targets to the nearest GAAP measures is unavailable without unreasonable efforts. Results excluding certain items included in our reported results do not include items such as goodwill impairment, major litigation provisions, real estate gains, impacts from foreign exchange and other revenue and expense items included in our reported results, all of which are unavailable on a prospective basis. Return on tangible equity is based on tangible shareholders’ equity, a non-GAAP financial measure also known as tangible book value, which is calculated by deducting goodwill and other intangible assets from total shareholders’ equity as presented in our balance sheet, both of which are unavailable on a prospective basis. Return on regulatory capital (a non-GAAP financial measure) is calculated using income / (loss) after tax and assumes a tax rate of 25% and capital allocated based on the average of 10% of RWA and 3.5% of leverage exposure; the essential components of this calculation are unavailable on a prospective basis. Such estimates, ambitions, objectives and targets are calculated in a manner that is consistent with the accounting policies applied by us in preparing our financial statements.Statement regarding capital, liquidity and leverageCredit Suisse is subject to the Basel III framework, as implemented in Switzerland, as well as Swiss legislation and regulations for systemically important banks (Swiss Requirements), which include capital, liquidity, leverage and large exposure requirements and rules for emergency plans designed to maintain systemically relevant functions in the event of threatened insolvency. Credit Suisse has adopted the Bank for International Settlements (BIS) leverage ratio framework, as issued by the Basel Committee on Banking Supervision (BCBS) and implemented in Switzerland by the Swiss Financial Market Supervisory Authority FINMA.References to phase-in and look-through included herein refer to Basel III capital requirements and Swiss Requirements. Phase-in reflects that, for the years 2014-2018, there was a five-year (20% per annum) phase-in of goodwill, other intangible assets and other capital deductions (e.g., certain deferred tax assets) and a phase-out of an adjustment for the accounting treatment of pension plans. For the years 2013-2022, there is a phase-out of certain capital instruments. Look-through assumes the full phase-in of goodwill and other intangible assets and other regulatory adjustments and the phase-out of certain capital instruments.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 tier 1 leverage ratio and CET1 leverage ratio are calculated as 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. Unless otherwise noted, for periods in 2020, leverage exposure excludes cash held at central banks, after adjusting for the dividend paid in 2020.SourcesCertain material in this presentation has been prepared by Credit Suisse on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. Credit Suisse has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness or reliability of such information.
Key highlights 4 February 18, 2021 Note: Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix 1 Relating to net income attributable to shareholders 2 Full savings expected from 2022 onwards; allow for reinvestment in full, subject to market and economic conditions 3 Post dividends, share buybacks and potential impact from RWA methodology changes 4 Including CHF 716 mn of dividends and CHF 325 mn of buybacks 5 Subject to market and economic conditions Strong underlying financial performance in 2020 4Q20 reported pre-tax income of CHF (88) mn and net income of CHF (353) mn1, including major litigation provisions of CHF 757 mn and an impairment relating to York of CHF 414 mnFull year 2020 reported pre-tax income of CHF 3.5 bn; net income of CHF 2.7 bn1Adjusted pre-tax income excluding significant items in 2020 of CHF 4.4 bn, up 6% YoY despite CHF 1.1 bn of provision for credit losses and significant FX headwinds Investments to accelerate our growth Targeting growth investments of CHF 0.3 – 0.6 bn in 2021 across Wealth Management and the IB, including investments in technology and SRIInvest most of marginal capital generated3 in Wealth Management to deploy into lending Strong capital position and disciplined capital distribution CET1 ratio of 12.9% at year-end 2020; total capital distribution of ~CHF 1 bn in 20204Proposal to increase 2020 dividend by 5.4% vs. 2019Expected total capital distribution of at least CHF 1.8 bn in 20215 Executed four key strategic initiatives to support our growth agenda Created one global Investment BankLaunched SRI – Sustainability, Research & Investment SolutionsSwiss Universal Bank: Integration of Neue Aargauer Bank and launch of CSXCombined Risk and Compliance functions Expect to generate gross savings of ~CHF 400-450 mn p.a.2
Despite a challenging macroeconomic and operating environment in 2020… 5 February 18, 2021 1 IMF WEO (October 2020) 2 Developing and Emerging Asia 3 Bloomberg, as of February 16, 2021 4 1-year forward rates at various points in time in respective currencies 2 APAC Uneven economic recovery post-COVID…Real GDP - 2017 rebased to 1001 …and rates likely to remain lower-for-longer1 year forward interest rate3,4, in % …albeit equity markets have recoveredMSCI World3, 2019 rebased to 100 Swiss Franc significantly appreciated in 2020…USD/CHF development3
…which notably impacted the banking sector… 6 February 18, 2021 Source: Bloomberg, as of February 16, 20211 KBW Banks Index members 2 Stoxx Europe 600 Banks Index members 1 2 1 2 1 2 2012 2014 2016 2018 2020E 2022E 2012 2014 2016 2018 2020E 2022E 2012 2014 2016 2018 2020E 2022E 1 2 MSCI World 1H19 2H19 1H20 2H20 COVID economic impact has led to elevated credit losses…Provision for credit loss as % of average gross loans ...while lower rates have weighed on net interest incomeNet interest income, in EUR & USD bn ...have also weighed on bank share prices Indexed at beginning of 2019 Restrictions on bank dividends…Dividend yield
7 February 18, 2021 …Credit Suisse recorded a strong growth in pre-provision profit, as we enter our growth phase Restructuringphase Platform for growth phase Growth phase Group adjusted pre-provision profit excl. significant items; in CHF bn Leverage exposurein CHF trn 1.1 0.93 (21)% CET1 capitalin CHF bn 28.6 35.4 +24% IB as % of Group(Allocated capital4) ~60%5 32% ~(28) pp. Note: Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix ‡ RoTE is a non-GAAP financial measure, see Appendix 1 At constant average 2019 FX rates 2 Reported Return on Tangible Equity in a normalized environment; subject to market and economic conditions 3 Group leverage exposure without the temporary exclusion of cash held at central banks 4 Based on the average of 10% of RWA and 3.5% of leverage exposure from Group total (Group leverage exposure without the temporary exclusion of cash held at central banks) 5 IB includes GM, IBCM, APAC Markets and SRU ex-WM related RWAs and LE before restatement +22% +30% at FXC1 RoTE‡ ambition 10-12%2
8 February 18, 2021 Our 2020 structural initiatives are supporting our growth agenda Created one global Investment Bank Integration of NAB into SUB on track, launched CSX Launched SRI – Sustainability,Research & Investment Solutions Combined Risk and Compliance functions 1 Full savings expected from 2022 onwards; allow for reinvestment in full, subject to market and economic conditions Expect gross savings of ~CHF 400-450 mn p.a.1for investments to accelerate our growth
Global investment banking1 revenues rebounded in 2020… 9 February 18, 2021 Global investment banking1 revenuesin USD bn 1 Includes net revenues from the Investment Bank, APAC advisory and underwriting as well as M&A, DCM and ECM revenues in SUB C&IC 2 Includes capital markets revenues and advisory and other fees in IB, APAC and SUB 3 Includes Other revenues of USD 77 mn 4 Includes Other revenues of USD (303) mn 5 Dealogic as of December 31, 2020 based on volumes 6 Dealogic as of December 31, 2020 based on fees 7 Dealogic as of December 31, 2020 based on fees (2020 vs. 2019) 8 Third Party competitive analysis as of 9M20 9 Return on Assets (2020 vs. 2019); Leverage based on period average 10 Bloomberg as of December 31, 2020 11 Thomson Reuters as of December 31, 2020 Fixed IncomeSales & Trading EquitySales & Trading Capital Markets & Advisory2 8.63 +26% +12% +31% +19% 2020 vs. 2019 10.24 #1Global IPOs5 #1Sponsors Lev Fin6 Capital Markets & Advisory Top 6Announced M&A5 +60 bpsShare of wallet7 Top 6Cash Equities8 +6 bpsPrime Services RoA9 Equity Sales& Trading #1Structured Credit10 #1 Asset Finance11 Fixed Income Sales & Trading Momentum in market leading franchises 31%GTS net revenue growth YoY GTS
…our capital markets and advisory franchise gained momentum and outperformed peers… 10 February 18, 2021 4.0 Fees3USD bn 6.2 7.7 6.1 4.7 8.5 2.3 3.3 1 IPO rank3,4 5 2 4 3 6 12 13 Top 8 Global Investment Banks: Capital markets and advisory fees growth2020 – YoY1,2 1 Includes Bank of America, Barclays, Citibank, Deutsche Bank, Goldman Sachs, JP Morgan and Morgan Stanley 2 Dealogic as of December 31, 2020; based on fees (for the years 2020 and 2019) 3 Dealogic as of December 31, 2020 (for the year 2020) 4 Based on deal value Credit Suisse’s capital markets and advisory share of wallet2
…positioning our integrated Investment Bank division to deliver sustainable returns Building on a diversified Investment Bank with reduced earnings volatility …to deliver our medium-term RoRC† ambition Focused execution… Note: Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix February 18, 2021 11 10-15% adjusted adjusted 70% Adjusted PTIin USD mn RoRC† Business mix well positioned forpost-COVID market environment Delivering institutional-style solutions to Wealth Management through GTS Continued investing in our market-leading businesses to deliver an RoRC† of 10-15%
12 February 18, 2021 SRI progress and momentum since launch in July 1 2020 vs. 2019; according to Credit Suisse ESG framework Enablement & execution Strategy enabled by governance bodies and committees at the BoD, ExB and divisional management levelsEngaged in meaningful dialogue with NGOs, investors, analysts and key rating agencies Global Head of Reputational, Sustainability and Climate Risk appointed in CRCO New private markets opportunities in co-development with BlackRock specifically aligned to CS Supertrends Delivering Sustainable Solutions Enabling Client Transitions Leadership on Standard Setting Driving our own Transition Adapting our Culture Significant YoY increase in ESG Thematic and Impact Investments1 Client Energy Transition Frameworks rolled out for oil & gas, coal mining, and fossil-based power generation; over 1,300 staff trained Upgraded to A- rating Upgraded to A rating Recent recognition & engagement Signatory to Stakeholder Capitalism Metrics Established SRI to deliver sustainable insights and solutions to our private, corporate and institutional clientsDeveloped comprehensive ESG strategy, including commitments to propel our ambition to be a leader in sustainability Integrated Securities Research to deliver thematic research across public and private marketsFocused on growth of recurring revenues in WM through integration of investment product platforms aligned with the business divisions Strategy Executed 37 Green, Social and Sustainability Bond transactions in 2020 totaling USD 19 bn, an increase of 42% YoY Partnering for Racial Justice in Business (WEF) Selected highlights WEF CDP MSCI
13 February 18, 2021 NAB integration well on track and successful launch of digital banking offering CSX in Switzerland NAB integration and branch optimization on track Regulatory approvals obtained; legal merger completed Public announcement of NAB integration Finalization and full integration Unified coverage, harmonized processes and offering Aug.2020 Dec.2020 Jun.2021 CSX as new digital core product in the retail space Established significant CSX client base with half of clients below 35 yearsCross-product usage Client success Broadened offering: CSX Financial Plan and CSX InvestNew partnerships to establish CSX ecosystem: e.g. bancassurance, digital rental deposit guarantees Offering expansion Straight-through onboarding of clients in 10 minutesCSX clients are active with an average of >10 logins per month Efficiency NAB integration timeline Integration on track with unified coverage, harmonized processes and offering; successful client retentionLegal merger completed with new integrated regional management team in place NAB integration Integrated NAB branch structure into CS network Reduction of our branch footprint in Switzerland by ~25% in 2020 Branch footprint Realization of cost synergies on trackPart of the expected ~CHF 100 mn gross cost savings p.a. in SUB from 2022 onwards Financial progress
14 February 18, 2021 Sustained and strengthened risk and compliance oversight, navigating through a volatile environment Risk managementthroughthe cycle Successfully navigated the COVID-19 pandemic during 2020, managing its impact across risk typesThe crisis proved the effectiveness of our risk appetite frameworks and hedging strategy, supporting earnings stabilityEnsured consistent, tight lending standards, supporting risk-controlled lending growth with an objective to maintain rigorous credit standards, consistent with our <10 bps provision for credit losses ratio through the cycle1 Integration of risk and compliance Implementation of joint Risk and Compliance organization (CRCO), driving efficiencies and effectiveness of controlEnables more consistent execution and delivery of our control framework across Risk and Compliance Driving simpler and scalable technology shared by Risk and Compliance, delivering solutions to deploy rapid cross-risk and cross-bank modelling and reporting Holistic client risk management Further improvement of risk oversight across risk types and complianceEstablished new global and divisional client risk committees embedding relevant risk types and compliance disciplines for a holistic client viewAddressed legacy compliance topics with ongoing remediation efforts, leveraging new tools, data and technology 1 For the periods 2010-2020. Provision for credit losses related to loans held at amortized cost as % of average gross loans held at amortized cost
15 February 18, 2021 Wealth Management offers significant growth opportunity; APAC continues to be the fastest growing region As per December 15, 2020 Investor Update presentation
16 February 18, 2021 Our AuM have grown to over CHF 1.5 trn or over USD 1.7 trn… 1 2015 converted from CHF to USD at USD/CHF exchange rate of 0.9892; 2020 converted from CHF to USD at USD/CHF exchange rate of 0.8807 2 Includes SUB C&IC, IWM AM and adjustment for assets managed by Asset Management within International Wealth Management for the other businesses; for 2015 also includes SRU Assets under Management Groupin CHF bn CAGR 7% Assets under Management Groupin USD bn1 Wealth Management Institutional (AM, C&IC)2 1,214 1,512 CAGR 4% CAGR 5% 1,227 1,717 Wealth Management Institutional (AM, C&IC)2
17 February 18, 2021 …with substantial growth in client business volume across our WM franchises, notably in APAC SUB PCClient Business Volume (CBV) in CHF bn 2020 2018 2016 2015 2017 2019 APACClient Business Volume (CBV) in USD bn1 2020 2018 2016 2015 2017 2019 IWM PBClient Business Volume (CBV) in USD bn1 2020 2018 2016 2015 2017 2019 Assets under Management 190 192 208 198 218 209 152 163 201 202 227 251 293 316 376 363 382 415 Custody Assets2 20 26 33 33 43 54 19 35 60 44 57 107 111 98 101 74 107 114 Net loans 108 110 111 113 116 118 35 39 43 43 47 44 41 44 52 52 55 59 1 Where CHF is converted to USD, a USD/CHF year-end spot exchange rate has been applied 2 Includes assets under custody and commercial assets 3 Excluding estimated cumulative FX impact based on management data, estimates and assumptions 4% CAGR Mid-single digit Mid- to high-single digit Double digit CBV growthambition3 6% CAGR 14% CAGR
Our House View continued to add substantial value for our clients during the pandemic 18 February 18, 2021 CS Investment Committee decisions since January 2019MSCI AC World Total Return Index in local currency1 Started the year overweight equities 13 Feb: Went to neutral equities 10 Apr: Went back to overweight equities 10 Jul: Went back to neutral equities 11 Sep: Went overweight equities 8 Jan: Went neutral equities 25 Mar: Went overweight equities 25 Jun: Went neutral equities 12 Nov: Went overweight equities On a long-term basis2, Discretionary Mandates outperformed 67% of clients in a non-discretionary strategy portfolioInnovation and integration of ESG considerations e.g. launched Climate Focus mandate in November 2020Enhanced diversification benefits from the addition of private equity in Platinum Solutions (Mandates)3Thematic Supertrends framework dynamically driving positive performance Credit Suisse Supertrends Anxious societies Infrastructure Millennials Silver economy Technology Climate change 1 Bloomberg as of February 16, 2021 2 Performance of discretionary mandates vs. non-discretionary client portfolios (December 31, 2017 to December 31, 2020) of PB clients in SUB, IWM and APAC that are booked in Switzerland 3 High-touch, bespoke investment management services for investable assets starting at CHF 20 mn
19 February 18, 2021 We are committed to accelerating growth across all three Wealth Management divisions… Our unique “Bank for Entrepreneurs” model is a differentiator Invest most of marginal capital generated1 into Wealth Management Sustainable investment solutions to be at the core of our offering Build on our successful collaboration with the Investment Bank and Asset ManagementOur business model is geared to deliver operating leverage Our core principles… …to capture medium-term growth opportunities across Wealth Management 1 Post dividends, share buybacks and potential impact from RWA methodology changes 2 SUB PC 3 IWM PB 4 Excluding estimated cumulative FX impact based on management data, estimates and assumptions 5 Alternative fund solutions from SRI - Investment Solutions & Products to wealth management clients 6 Dealogic for the year 2020 Grow client business volume4 Attract NNA4 Extend lending4 Strengthen collaboration Deepen mandate penetration Extend collaboration with GTS Build on leading Advisory position in SUB / APAC6 and drive mid-market opportunity in IWM GrowPrivate Markets Leverage data analytics, enhance digital product capabilities and build on recently launched CSX offering Accelerate digital transformation Drive mandate penetration from 28% to ~33% with a focus on sustainable solutions SUB2 Mid-singledigit Low-singledigit 1-3% IWM3 Mid- to high-single digit High-singledigit 4-6% APAC Double digit Double digit 6-8% Increase Alternatives and PE feeder funds distribution5 to CHF 5-7 bn p.a. Maintain rigorous credit standards, historic <10 bps PCL ratio
20 February 18, 2021 …aiming for Wealth Management-related PTI of CHF 5.0-5.5 bn in 2023 Note: Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix 1 Post dividends, share buybacks and potential impact from RWA methodology changes 18%adj. excl. significant items 20-25% Wealth Management-related metrics PTIin CHF bn RoRC† 2023ambition 2020adj. excl. significant items Invest most of marginal capital generated1 into Wealth Management to deploy into lendingDeepen our onshore footprint in fast-growth markets, notably China, other parts of APAC and Middle East Continue to drive GTS, Investment Bank and Asset Management collaboration with Wealth ManagementExpect normalized credit provisions in 2021 (but with a wide range of possible outcomes) and beyondExpect normalized Asset Management profitability 3.8 SUB IWM APAC ~10%CAGR 5.0-5.5
We expect to distribute at least CHF 1.8 bn in 2021, up from ~CHF 1 bn in 2020 21 1 Dividend distribution including dividend equivalents for share awards 2 Reflecting a dividend per share increase of 5.4% vs. 2019; subject to Board of Directors and AGM approval; final amount is subject to share count at ex-dividend date 3 The Board of Directors has approved share buybacks for 2021 of up to CHF 1.5 bn with at least CHF 1.0 bn expected for the full year; resumed share repurchases on January 12, 2021. CHF 112 mn of shares repurchased as of February 16, 2021 4 Subject to market and economic conditions February 18, 2021 Total capital distribution in 2020 in CHF 716 mn 325 mn ~766 mn2 3 2nd half 1st half At least 1.0 bn andup to 1.5 bn approved Expected total capital distribution in 20214 in CHF Total of ~CHF 1 bn paidto shareholders in 2020 Total of at least CHF 1.8 bn payable to shareholders in 2021, including proposed dividend of CHF 0.2926 per share 1 1
Detailed Financials 22 February 18, 2021
Results Overview 23 Note: Adjusted results and results excluding significant items are non-GAAP financial measures. For further details and reconciliation information, see Appendix. 4Q20 reported results include a gain related to the equity investment revaluation of SIX and Allfunds, and a York impairment. 2Q20 reported results include a gain related to the equity investment revaluation of Pfandbriefbank. 1Q20 reported results include a gain related to the transfer of the InvestLab fund platform to Allfunds Group. 4Q19 reported results include a gain related to the equity investment revaluation of SIX. 3Q19 reported results include a gain related to the transfer of the InvestLab fund platform to Allfunds Group ‡ RoTE is a non-GAAP financial measure, see Appendix 1 Includes SUB, IWM and APAC February 18, 2021 Credit Suisse Group in CHF mn unless otherwise specified 4Q20 3Q20 4Q19 Δ 4Q19 2020 2019 Δ 2019 Net revenues 5,221 5,198 6,190 (16)% 22,389 22,484 - o/w Wealth Management-related1 3,129 3,164 4,120 (24)% 13,607 14,750 (8)% o/w Investment Bank in USD mn 2,337 2,245 1,977 18% 9,718 8,216 18% Provision for credit losses 138 94 146 1,096 324 o/w CECL-related 32 (55) - 412 - Total operating expenses 5,171 4,301 4,830 7% 17,826 17,440 2% Pre-tax income / (loss) (88) 803 1,214 n/m 3,467 4,720 (27)% Income tax expense 262 258 361 801 1,295 Effective tax rate n/m 32% 30% 23% 27% Net income / (loss) attributable to shareholders (353) 546 852 n/m 2,669 3,419 (22)% Return on tangible equity‡ (3.5)% 5.4% 8.6% 6.6% 8.7% Diluted earnings per share in CHF (0.15) 0.22 0.33 n/m 1.06 1.32 (20)% Adjusted and excluding significant itemsin CHF mn Net revenues 5,335 5,198 5,548 (4)% 22,101 21,410 3% o/w Wealth Management-related1 3,243 3,164 3,484 (7)% 13,319 13,657 (2)% Pre-tax income 861 1,087 955 (10)% 4,375 4,143 6%
24 February 18, 2021 We achieved strong growth in underlying pre-tax income Group pre-tax income in CHF mn Reported Note: Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix (27)% +6% Adjusted and excluding significant items Reported pre-tax income includes in CHF mn 2019 2020 InvestLab/Allfunds gains 327 395 SIX revaluation gain 498 158 Pfandbriefbank gain - 134 York impairment - (414) Real estate & business sales gains 249 15 Restructuring & real estate disposal expenses (108) (208) Major litigation provisions (389) (988) Total adjustments and significant items 577 (908)
25 February 18, 2021 CET1 ratio at 12.9%, reflecting strong recovery from the market dislocation seen in 1H20 275 Risk-weighted assets in CHF bn 290 CET1 ratio in % Key messagesCET1 ratio at 12.9%, up ~20 bps vs. 4Q19RWA reduction in the quarter and YTD primarily reflects continued depreciation of the USD vs. CHFCompleted the phase-in of certain Basel III reforms with total impact of CHF 11 bn in 2020 (mostly from SA-CCR)Intend to maintain a CET1 ratio of at least 12.5% for at least the first half of 20211Capital distributionPaid 2019 dividend of CHF 0.2776 per shareWe recommend a CHF 0.2926 dividend per share for 2020 and continue to accrue for at least 5% dividend growth p.a.Resumed share repurchases under our 2021 share buyback program on January 12, 2021. CHF 112 mn of shares repurchased YTD2 295 Risk-weighted assets excl. FX impact in 2020 in CHF bn 290 1 Subject to market and economic conditions 2 As of February 16, 2021
26 February 18, 2021 CET1 leverage ratio at 4.4%1; Tier 1 leverage ratio increased to 6.4%1 1 In 3Q20 and 4Q20 leverage exposure excludes CHF 110 bn and CHF 111 bn, respectively, of central bank reserves, after adjusting for the dividend paid in 2020, as permitted by FINMA 2 Calculated using a three-month average, which is calculated on a daily basis Key messagesCET1 leverage ratio at 4.4%1Tier 1 leverage ratio of 6.4%1 improved by 10 bps compared to 3Q20, partially driven by USD 1.5 bn additional tier 1 issuance in December 2020 Leverage exposure decrease primarily driven by FX, mainly from the depreciation of the USD vs. CHFLiquidity Coverage Ratio (LCR) of 190%2 stable vs. 3Q20, reflecting conservative approach to liquidity management during the COVID-19 pandemic Leverage exposure1 in CHF bn 6.4% Tier 1 leverage ratio (excl. CB reserves) 6.3% 5.6% Tier 1 leverage ratio (incl. CB reserves) 5.6% 1 1 Leverage exposure (incl. CB reserves) in CHF bn 934 824 800 (7) SUB, IWM, APAC +6Corp. Ctr. (5)IB (8) 1 911 4.4% CET1 leverage ratio (excl. CB reserves) 4.5% 3.9% CET1 leverage ratio (incl. CB reserves) 4.0% 1 1
27 February 18, 2021 TBVPS broadly flat at CHF 15.80 vs. end-2019;net income generation offset by adverse FX impacts ‡ Tangible book value per share (TBVPS) is a non-GAAP financial measure, see Appendix 1 Reflects impact from share buybacks under the 2020 share buyback program and the payment of the 2019 dividend 2 Reflects net impact of settlements of share-based compensation awards and quarterly share plan accruals 3 Reflects impact on tangible shareholders’ equity from own credit movements via other comprehensive income and tax expenses related to own credit movements 4 Includes the impact from amortization of accumulated losses in other comprehensive income related to pension plan re-measurements and the cumulative effect of accounting changes 3 1 CHF 2.7 bngenerated 4 15.80 2 (0.49) in 4Q20 Own creditmovements 0.08 net increase from own credit movements during 2020 Tangible book value per share (TBVPS)‡in CHF Key messagesTBVPS‡ at the end of 2020 broadly unchanged vs. end of 2019:Net income attributable to shareholders contributing CHF 1.10 Impact from widening credit spreads during 1Q20 mostly reversed during the last three quarters of 2020Adverse FX impacts of CHF (1.27), resulting from the strengthening of the Swiss franc, mainly against the US dollar
28 February 18, 2021 Update on progress of our restructuring program 157 ~300-350 ~400-450 Incurred CHF 157 mn of restructuring expenses during 2020, out of an expected total of ~CHF 300-350 mn over the duration of the programRestructuring expenses in 2020 primarily taken in IWM, IB and SUB, mainly related to redundancy expensesRestructuring program expected to be completed by the end of 2Q21Anticipate to generate ~CHF 400-450 mn of gross savings from 2022 onwardsAllow for reinvestment in full of gross savings, subject to market and economic conditions Restructuring expensesin CHF mn ~250-300 ~150-200
29 February 18, 2021 2H20 allowance build from credit provisioning offset by net write-offs and FX impact Allowance for credit losses (ACL)1in CHF mn 1 Includes the allowance for credit losses on financial assets held at amortized cost and provisions for off-balance sheet credit exposures 2 Impact of CECL adoption on January 1, 2020 excluding impact from fair value election 3 Includes FX translation impact and other adjustment items of CHF (27) mn, including CECL impact of CHF (5) mn, and provision for interest of CHF 25 mn 4 Includes FX translation impact and other adjustment items of CHF (102) mn, including CECL impact of CHF (48) mn, and provision for interest of CHF 12 mn 1 1,223 Non-specificprovisions Specificprovisions CECL adoption impact2 End-4Q19 Provision for credit losses – Specific provisions Provision for credit losses – CECL 864 1,902 1 Non-specificprovisions Specificprovisions 2,001 232 1 3 4 1H20 2H20
30 February 18, 2021 Expect more normal credit provisions in 2021, but with a wide range of possible outcomes CECL 2010-2020 Average: 280 Provision for credit lossesin CHF mn Specific provisions 1,096 Continued elevated specific provisions1 Lower CECL charges1 Note: Estimates and assumptions are based on currently available information and beliefs, expectations and opinions of management and include all known facts and decisions as of February 17, 2021. Actual results may differ 1 Subject to market and economic conditions 2 Provision for credit losses related to loans held at amortized cost as % of average gross loans held at amortized cost 3 For periods prior to 2019, non-restated numbers have been used. WM-related reflects the sum of SUB, IWM and APAC for the periods 2014 to 2020 and reflects Private Banking & Wealth Management for the periods 2010 to 2013 Provision for credit losses ratio2in bps o/w WM-related3 8 21 10 30 Avg.2010-2020 7 9
31 February 18, 2021 Credit Suisse’s comparative wholesale reserves Source: Company filings Note: Ratios based on local currency 1 Includes specific and portfolio based allowances for credit losses as % of gross loans for wholesale businesses. CS includes the Investment Bank. Peers include Bank of America, Citigroup and JP Morgan. Bank of America includes Commercial, Citigroup includes Corporate, JP Morgan includes Wholesale Wholesale – Allowance for credit losses as % of loans1 (excluding fair value and held-for-sale loans)
Transaction-based revenues significantly benefitted from elevated volatility in 1H20Successful expansion of the GTS collaboration with the WM franchise through 2020, increasing WM-related revenues in collaboration with GTS4 by 34% vs. 2019 32 WM expected to benefit from sequential stability in recurring income1; continued high levels of transaction activity Note: Subject to market and economic conditions; Wealth Management-related includes SUB, IWM and APAC 1 Recurring income includes net interest income and recurring commissions & fees 2 Excluding estimated FX impact since end-3Q20 3 At current FX rates 4 Includes institutional-style solutions for Wealth Management clients February 18, 2021 Net interest income Wealth Management-related, in CHF mn Recurring commissions & fees Wealth Management-related, in CHF mn Transaction-based revenues Wealth Management-related, in CHF mn Net interest income stabilizing sequentially in 4Q20, with increasing lending activity2 offsetting rates pressureAnticipate increase in net interest income from 2Q21 onwards, benefitting from planned increased lending in Wealth Management3 Recurring commissions & fees increased in 2H20 after recovery of AuM from 3Q20 onwardsAuM 2020 exit rate above 4Q19 at record level of CHF 1.5 trnExpect to benefit from growing AuM base going into 2021 Pre-COVID Pre-COVID Pre-COVID
Swiss Universal BankSolid full year pre-provision profit growth driven by transactional revenues 33 February 18, 2021 PC Key metrics in CHF bn 4Q20 3Q20 4Q19 2020 2019 Net margin in bps 38 46 41 45 43 Net new assets (2.1) 2.0 (0.5) (5.9) 3.4 Client Business Volume 381 373 377 381 377 Mandate penetration 37% 36% 34% 37% 34% Net loans 176 174 171 176 171 Risk-weighted assets 81 82 80 81 80 Leverage exposure 296 295 285 296 285 Key messagesReported 2020 PTI of CHF 2.1 bn includes significant items of CHF 294 mn (vs. CHF 404 mn in 2019), litigation provisions of CHF 45 mn and restructuring expenses of CHF 44 mn2020 adjusted PTI excluding significant items of CHF 1.9 bn with strong ongoing cost discipline as well as higher brokerage and GTS revenues, leading to a cost/income ratio of 59%, down 2 pp.Higher provision for credit losses driven by CHF 75 mn from the application of CECL and a single case in C&IC in 3Q20; pre-provision profit increased by 4%Stabilization of net interest income vs. 3Q20 and continuous assessment of deposit pricing in light of the sustained negative interest rate environmentIncreased mandate penetration by 3 pp. to 37%Private Clients4Q20 net revenues decreased 4% as increased client activity was more than offset by lower deposit income, primarily from the negative interest rate environment and lower recurring revenues, primarily from our investment in SwisscardNet asset outflows in 4Q20 of CHF 2.1 bn were mainly driven by a small number of individual cases in the UHNW client segment and by the usual seasonal slowdown in the fourth quarterCorporate & Institutional Clients4Q20 net revenues down 9%, driven by decreased deposit income primarily from lower USD interest rates, offsetting higher brokerage revenuesNNA in 4Q20 of CHF 3.8 bn driven by continued contribution from our pension business Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix. All percentage changes and comparative descriptions refer to year on year measurements unless otherwise specified † RoRC is a non-GAAP financial measure, see Appendix Adjusted key financials excl. significant items in CHF mn 4Q20 3Q20 4Q19 2020 2019 Net revenues 1,243 1,294 1,322 5,306 5,278 Provision for credit losses 66 52 43 270 109 o/w CECL-related 15 (36) - 75 - Total operating expenses 790 771 822 3,149 3,208 Pre-tax income 387 471 457 1,887 1,961 Reported pre-tax income 487 430 867 2,104 2,573 Cost/income ratio 64% 60% 62% 59% 61% Return on regulatory capital† 13% 15% 14% 15% 15%
Swiss Universal BankLast 3 fourth quarters – Adjusted results excluding significant items 34 February 18, 2021 Net revenues in CHF mn 4Q20 4Q19 4Q18 Pre-tax income in CHF mn Return on regulatory capital† Client Business Volume in CHF bn SUB PC net margin in bps Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 Cost/income ratio
Swiss Universal BankLast 5 years – Adjusted results excluding significant items 35 February 18, 2021 Net revenues in CHF mn 2020 2019 2018 Pre-tax income in CHF mn Return on regulatory capital† Client Business Volume in CHF bn SUB PC net margin in bps Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix Cost/income ratio 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
International Wealth ManagementStrong Net New Assets in a challenging year 36 February 18, 2021 Key messagesReported 2020 PTI of CHF 1.1 bn includes net charge for significant items of CHF (84) mn (vs. a benefit of CHF 323 mn in 2019) and restructuring expenses of CHF 55 mnAdjusted 4Q20 PTI excluding significant items of CHF 321 mn reflects higher client activity in PB and a recovery in performance fees in AMAdverse FX impact of CHF (293) mn on 2020 revenues and CHF (104) mn on pre-tax income, of which the majority occurred in PB1Private Banking4Q20 PTI of CHF 206 mn and 2020 PTI of CHF 1.0 bn, down on macro headwinds and higher credit provisionsNet interest income down on lower deposit margins, but stable vs. 3Q20;excluding FX impact, loans increased since the deleveraging in 1Q20Transaction revenues down with higher client activity more than offset by adverse FX impact; 2020 transaction revenues up, benefitting from strong GTS performanceRecurring commissions and fees down on lower AuM; up vs. 3Q20 with an improved recurring margin of 33 bps (+2 bps)Record fourth quarter and full year NNA of CHF 4.3 bn and CHF 16.7 bn, respectively; strong inflows in Emerging Markets and Western EuropeAsset Management4Q20 PTI of CHF 115 mn with higher performance fees in Equities and reduced expenses, offset by lower investment & partnership incomeCHF 6.3 bn NNA in 4Q20; 2020 NNA of CHF 15.5 bn driven by Index Solutions and Equities, partially offset by Fixed Income Key metrics in CHF bn 4Q20 3Q20 4Q19 2020 2019 Net margin in bps 23 27 29 28 33 Net new assets 4.3 6.9 0.6 16.7 11.0 Client Business Volume 518 494 528 518 528 Number of RM 1,140 1,130 1,150 1,140 1,150 Net loans 52 53 54 52 54 Net new assets AM 6.3 5.0 7.5 15.5 21.5 Risk-weighted assets 43 45 44 43 44 Leverage exposure 104 105 99 104 99 Adjusted key financials excl. significant items in CHF mn 4Q20 3Q20 4Q19 2020 2019 Net revenues 1,254 1,142 1,412 4,921 5,448 Provision for credit losses 25 12 17 110 49 o/w CECL-related 9 7 - 17 - Total operating expenses 908 862 983 3,624 3,711 Pre-tax income 321 268 412 1,187 1,688 Reported pre-tax income / (loss) (12) 215 630 1,052 2,065 Cost/income ratio 72% 75% 70% 74% 68% Return on regulatory capital† 24% 19% 29% 22% 30% PB Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix. All percentage changes and comparative descriptions refer to year on year measurements unless otherwise specified † RoRC is a non-GAAP financial measure, see Appendix 1 For details see reconciliation tables in the Appendix
International Wealth ManagementLast 3 fourth quarters – Adjusted results excluding significant items 37 February 18, 2021 Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix 1 Before elimination of assets managed by Asset Management on behalf of IWM PB clients Net revenues in CHF mn Pre-tax income in CHF mn Cost/income ratio Return on regulatory capital† Client Business Volume1 in CHF bn IWM PB net margin in bps 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18
International Wealth ManagementLast 5 years – Adjusted results excluding significant items 38 February 18, 2021 Net revenues in CHF mn 2020 2019 2018 Pre-tax income in CHF mn Return on regulatory capital† Client Business Volume1 in CHF bn IWM PB net margin in bps Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix 1 Before elimination of assets managed by Asset Management on behalf of IWM PB clients Cost/income ratio 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Asia PacificStrong RoRC† reflecting increase in market and client activity 39 February 18, 2021 Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix. All percentage changes and comparative descriptions refer to year on year measurements unless otherwise specified † RoRC is a non-GAAP financial measure, see Appendix 1 Dealogic for the year 2020 (APAC excl. Japan and China onshore among International banks) Full year 2020 Net revenues increased by 5%, or 12% in constant 2019 FX terms, with transaction-based revenues benefitting from strong GTS performance, private client activity and increased IBCM share of wallet (for the fifth consecutive year1), partially offset by lower financing revenuesReported PTI of CHF 828 mn includes significant items of CHF 63 mn (vs. CHF 98 mn in 2019)Adjusted PTI excluding significant items of CHF 769 mn includes credit provisions of CHF 236 mn (vs. CHF 55 mn in 2019); cost/income ratio down 3 pp. to 67%Fourth quarter 2020Net revenues largely stable despite an adverse FX impact of CHF 57 mnPTI stable includes adverse FX impacts of CHF 14 mn; RoRC† at 23%, up 5 pp. Net interest income declined 27% mainly reflecting negative impact from low interest rates and lower lending volumes from client deleveraging in 1H20Recurring commissions & fees down 5% due to unfavorable FX movements; QoQ improvement primarily from higher fund and mandate volumesTransaction-based revenues up 28% reflecting higher financing revenues, including MtM gains, higher origination fees from equity-related activity and strong private client activityExpenses increased in local currency terms reflecting higher compensation expenses and investments in China offset by a beneficial FX impactContinued client re-leveraging in 4Q20; excluding adverse FX impact, net loans grew in the quarterRWA and leverage exposure declined 17% and 8% YoY, respectively, also benefitting from FX movements Key metrics in CHF bn 4Q20 3Q20 4Q19 2020 2019 Net margin in bps 36 33 37 36 38 Net new assets (1.1) 2.2 0.7 8.6 8.7 Client Business Volume 354 333 321 354 321 Number of RM 600 600 600 600 600 Net loans 39 38 46 39 46 Risk-weighted assets 27 27 32 27 32 Leverage exposure 74 74 81 74 81 Adjusted key financials excl. significant items in CHF mn 4Q20 3Q20 4Q19 2020 2019 Net interest income 241 257 330 1,071 1,118 Recurring commissions & fees 89 85 94 348 378 Transaction-based 415 386 325 1,670 1,433 Other revenues 1 - 1 3 2 Net revenues 746 728 750 3,092 2,931 Provision for credit losses 6 45 14 236 55 o/w CECL-related 3 9 - 33 - Total operating expenses 539 504 535 2,087 2,052 Pre-tax income 201 179 201 769 824 Reported pre-tax income 237 177 201 828 922 Cost/income ratio 72% 69% 71% 67% 70% Return on regulatory capital† 23% 20% 18% 20% 19%
Asia PacificLast 3 fourth quarters – Adjusted results excluding significant items 40 February 18, 2021 Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix Net revenues in CHF mn Pre-tax income in CHF mn Return on regulatory capital† Client Business Volume in CHF bn APAC net margin in bps Cost/income ratio 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18
Asia PacificLast 5 years – Adjusted results excluding significant items 41 February 18, 2021 Net revenues in CHF mn 2020 2019 2018 Pre-tax income in CHF mn Return on regulatory capital† Client Business Volume in CHF bn APAC net margin in bps Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix Cost/income ratio 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
Investment BankStrong revenue momentum driving higher profitability and returns 42 February 18, 2021 Full year 2020Revenues up 18% reflecting growth across all products with accelerating momentum in Capital Markets, particularly in 2H20Reported PTI of USD 1.8 bn, includes USD 52 mn of restructuring expensesAdjusted PTI of USD 1.9 bn, up 70% and higher adjusted RoRC† of 13% highlighting strength of diversified and de-risked franchiseFourth quarter 2020 Net revenues up 19% at USD 2,337 mnAdjusted PTI of USD 357 mn, up 268%, generating significantly improved adjusted RoRC† of 10%; results reflect market share gains and constructive market conditionsOutperformance in Capital markets, up 90%, with ECM revenues up 217% and higher debt issuance activity; higher advisory revenues reflecting increased M&A completionsStable fixed income sales and trading revenues vs. strong 4Q19 results reflecting continued strength in our Credit franchiseHigher equity sales and trading revenues, up 5%, with strength in cash equities and equity derivativesGTS revenues stable YoY following a strong 3Q20 performance as lower macro results offset increased cross-divisional collaborationOperating expenses increased 7% mainly due to higher compensation and UK bank levy costsLeverage exposure decreased QoQ due to reduced margin requirements and settlement fails; RWA decreased QoQ driven by business reductions and lower credit risk Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix. All percentage changes and comparative descriptions refer to year on year measurements unless otherwise specified † RoRC is a non-GAAP financial measure, see Appendix 1 Includes DCM and ECM 2 Other revenues include treasury funding costs and changes in the carrying value of certain investments Key metrics in USD bn 4Q20 3Q20 4Q19 2020 2019 Risk-weighted assets 88 90 85 88 85 Leverage exposure 363 365 343 363 343 Adjusted key financials in USD mn 4Q20 3Q20 4Q19 2020 2019 Fixed income S&T 788 921 789 4,266 3,374 Equity S&T 555 588 529 2,571 2,291 Capital markets1 843 708 443 2,539 1,873 Advisory and other fees 199 117 172 645 601 Other2 (48) (89) 37 (303) 70 Net revenues 2,337 2,245 1,970 9,718 8,209 Provision for credit losses 42 (16) 69 489 105 o/w CECL-related 3 (37) - 289 - Total operating expenses 1,938 1,797 1,804 7,347 7,000 Pre-tax income 357 464 97 1,882 1,104 Reported pre-tax income 318 405 57 1,760 1,033 Cost/income ratio 83% 80% 92% 76% 85% Return on regulatory capital† 10% 13% 3% 13% 8%
Investment BankLast 3 fourth quarters – Adjusted results 43 February 18, 2021 Fixed income Sales & Trading in USD mn Capital markets1 in USD mn Equity Sales & Trading in USD mn Advisory and other fees in USD mn Pre-tax income in USD mn Return on regulatory capital† Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix 1 Includes DCM and ECM 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18 4Q20 4Q19 4Q18
Investment BankLast 5 years – Adjusted results 44 February 18, 2021 Fixed income Sales & Trading in USD mn Capital markets1 in USD mn Equity Sales & Trading in USD mn Advisory and other fees in USD mn Pre-tax income in USD mn Return on regulatory capital† Note: For details on calculations see under ‘Notes’ in the Appendix. All financial numbers presented and discussed are adjusted, unless otherwise stated. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix 1 Includes DCM and ECM 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016
CEO Summary 45 February 18, 2021
46 February 18, 2021 We are focused on delivering value for our stakeholders Continued innovation in digitalization and automation, driving positive operating leverage Deliver RoRC† of 20-25%2 Deliver PTI of CHF 5.0-5.5 bn2 in 2023 Accelerate Wealth Management growth Deliver RoRC† of 10-15% Drive sustainable Investment Bank returns Be a leader in sustainability Invest most of marginal capital generated1 into Wealth Management Grow TBVPS‡ and provide attractive capital returns through dividends and share buybacks Deliver medium-term RoTE‡ of 10-12% † RoRC is a non-GAAP financial measure, see Appendix ‡ RoTE and TBVPS are non-GAAP financial measures, see Appendix 1 Post dividends, share buybacks and potential impact from RWA methodology changes 2 Includes SUB, IWM and APAC
Appendix 47 February 18, 2021
Swiss Universal BankPrivate Clients and Corporate & Institutional Clients 48 February 18, 2021 Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix C&IC Adjusted key financials excl. significant items in CHF mn 4Q20 3Q20 4Q19 2020 2019 Net interest income 255 258 282 1,069 1,125 Recurring commissions & fees 159 168 173 665 663 Transaction-based 148 175 167 755 732 Other revenues (7) (7) (15) (42) (58) Net revenues 555 594 607 2,447 2,462 Provision for credit losses 49 47 32 208 63 o/w CECL-related 6 (30) - 55 - Total operating expenses 316 312 340 1,274 1,358 Pre-tax income 190 235 235 965 1,041 Reported pre-tax income 230 230 393 1,024 1,291 Cost/income ratio 57% 53% 56% 52% 55% Key metrics in CHF bn 4Q20 3Q20 4Q19 2020 2019 Net margin in bps 38 46 41 45 43 Net new assets (2.1) 2.0 (0.5) (5.9) 3.4 Mandate penetration 37% 36% 34% 37% 34% Client Business Volume 381 373 377 381 377 Number of RM 1,290 1,310 1,280 1,290 1,280 Key metrics in CHF bn 4Q20 3Q20 4Q19 2020 2019 Net new assets 3.8 3.5 2.5 13.7 45.3 Client Business Volume 620 592 589 620 589 Number of RM 480 480 510 480 510 Private Clients Adjusted key financials excl. significant items in CHF mn 4Q20 3Q20 4Q19 2020 2019 Net interest income 403 396 414 1,614 1,580 Recurring commissions & fees 193 199 212 775 826 Transaction-based 96 106 90 480 412 Other revenues (4) (1) (1) (10) (2) Net revenues 688 700 715 2,859 2,816 Provision for credit losses 17 5 11 62 46 o/w CECL-related 9 (6) - 20 - Total operating expenses 474 459 482 1,875 1,850 Pre-tax income 197 236 222 922 920 Reported pre-tax income 257 200 474 1,080 1,282 Cost/income ratio 69% 66% 67% 66% 66%
International Wealth ManagementPrivate Banking and Asset Management 49 February 18, 2021 Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix Private Banking Adjusted key financials excl. significant items in CHF mn 4Q20 3Q20 4Q19 2020 2019 Net interest income 304 302 368 1,265 1,419 Recurring commissions & fees 297 272 319 1,136 1,205 Transaction- and perf.-based 261 259 270 1,221 1,186 Other revenues - 3 5 (2) 3 Net revenues 862 836 962 3,620 3,813 Provision for credit losses 31 8 17 110 48 o/w CECL-related 14 2 - 17 - Total operating expenses 625 592 674 2,515 2,560 Pre-tax income 206 236 271 995 1,205 Reported pre-tax income 293 197 491 1,091 1,586 Cost/income ratio 73% 71% 70% 69% 67% Key metrics in CHF bn 4Q20 3Q20 4Q19 2020 2019 Net margin in bps 23 27 29 28 33 Net new assets 4.3 6.9 0.6 16.7 11.0 Client Business Volume 518 494 528 518 528 Mandate penetration 34% 34% 34% 34% 34% Net loans 52 53 54 52 54 Number of RM 1,140 1,130 1,150 1,140 1,150 AM Adjusted key financials excl. significant items in CHF mn 4Q20 3Q20 4Q19 2020 2019 Management fees 269 261 280 1,050 1,112 Performance & placement revenues 115 40 92 170 244 Investment & partnership income 8 5 78 81 279 Net revenues 392 306 450 1,301 1,635 Provision for credit losses (6) 4 - - 1 o/w CECL-related (5) 5 - - - Total operating expenses 283 270 309 1,109 1,151 Pre-tax income 115 32 141 192 483 Reported pre-tax income /(loss) (305) 18 139 (39) 479 Cost/income ratio 72% 88% 69% 85% 70% Key metrics in CHF bn 4Q20 3Q20 4Q19 2020 2019 Net new assets 6.3 5.0 7.5 15.5 21.5 Assets under management 440 439 438 440 438
Wealth Management businessesNNA generation 50 IWM PB NNA in CHF bn NNA growth (annualized) 5% SUB PC NNA in CHF bn NNA growth (annualized) (4)% 4Q20 4Q20 8% 1% 2% 4% 4% (1)% (3)% (8)% 3Q20 4Q19 1Q20 2Q20 3Q20 4Q19 1Q20 2Q20 (4.2) February 18, 2021 NNA growth (annualized) (2)% APAC NNA in CHF bn 4Q20 4% 1% 9% 5% 3Q20 4Q19 1Q20 2Q20
51 February 18, 2021 Wealth Management businessesNet and gross margins Note: For details on calculations see under ‘Notes’ at the end of this Appendix. Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix 347 204 236 236 836 700 Average AuM in CHF bn Adjusted pre-tax income excl. significant items in CHF mn Adjusted net revenues excl. significant items in CHF mn 905 1,017 862 962 224 329 206 271 338 358 356 371 702 769 688 715 210 279 197 222 200 211 206 217 IWM PB Adj. net margin excl. sign. items in bps Adj. gross margin excl. sign. items in bps 4Q20 3Q20 1Q20 4Q19 2Q20 4Q20 3Q20 1Q20 4Q19 2Q20 SUB PC Adj. net margin excl. sign. items in bps Adj. gross margin excl. sign. items in bps 4Q20 3Q20 1Q20 4Q19 2Q20 4Q20 3Q20 1Q20 4Q19 2Q20 179 728 808 810 746 750 196 193 201 201 216 208 214 222 219 APAC Adj. net margin excl. sign. items in bps Adj. gross margin excl. sign. items in bps 4Q20 3Q20 1Q20 4Q19 2Q20 4Q20 3Q20 1Q20 4Q19 2Q20
52 February 18, 2021 Wealth Management businessesClient Business Volume (CBV) SUB PCClient Business Volume (CBV) in CHF bn 4Q20 2Q20 4Q19 1Q20 3Q20 CBV growth QoQ (annualized), excluding estimated cumulative FX impact1 8% (22)% 16% 7% 10% APACClient Business Volume (CBV) in CHF bn IWM PBClient Business Volume (CBV) in CHF bn 4Q20 2Q20 4Q19 1Q20 3Q20 4Q20 2Q20 4Q19 1Q20 3Q20 Assets under Management in CHF bn 218 195 202 205 209 Custody Assets2 in CHF bn 43 42 48 50 54 Net loans in CHF bn 116 117 118 118 118 370 328 345 352 365 104 71 82 89 100 54 50 51 53 52 220 197 216 219 221 55 47 63 76 94 46 42 40 38 39 7% (46)% 29% 17% 26% 18% (34)% 44% 27% 38% 1 Based on management data, estimates and assumptions 2 Includes assets under custody and commercial assets
53 Corporate Center Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix 1 ‘Other revenues’ primarily include required elimination adjustments associated with trading in own shares, treasury commissions charged to divisions, the cost of certain hedging transactions executed in connection with the Group's RWAs and valuation hedging impacts from long-dated legacy deferred compensation and retirement programs mainly relating to former employees 2 Excludes CHF 111 bn of central bank reserves, after adjusting for the dividend paid in 2020, as permitted by FINMA 3 Excludes CHF 110 bn of central bank reserves, after adjusting for the dividend paid in 2Q20 and the planned dividend payment in 4Q20 as permitted by FINMA ARU within Corp. Ctr. Adjusted key financials in CHF mn unless otherwise specified 4Q20 3Q20 4Q19 2020 2019 Net revenues (50) (33) (40) (178) (142) Provision for credit losses - (2) 4 (4) 5 Total operating expenses 50 37 48 163 234 Pre-tax income / (loss) (100) (68) (92) (337) (381) Risk-weighted assets in USD bn 10 10 11 10 11 RWA excl. operational risk in USD bn 9 10 9 9 9 Leverage exposure in USD bn 21 21 21 21 21 Corporate Center Key metrics in CHF bn 4Q20 3Q20 4Q19 2020 2019 Total assets 111 118 106 111 106 Risk-weighted assets 46 49 52 46 52 Leverage exposure 72 153 113 72 113 Corporate Center Adjusted key financials in CHF mn 4Q20 3Q20 4Q19 2020 2019 Treasury results (32) (53) 92 (356) (501) o/w Structured Notes Volatility 22 31 14 (234) (460) Asset Resolution Unit (50) (33) (40) (178) (142) Other1 65 73 72 218 218 Net revenues (17) (13) 124 (316) (401) Provision for credit losses 3 (1) 5 9 7 Compensation and benefits 140 136 174 352 489 G&A expenses 196 88 134 477 460 Commission expenses 17 19 20 81 68 Total other operating expenses 213 107 154 558 528 Total operating expenses 353 243 328 910 1,017 Pre-tax income / (loss) (373) (255) (209) (1,235) (1,425) Reported pre-tax income / (loss) (1,090) (389) (539) (2,172) (1,866) February 18, 2021
International Wealth Management in USD1 54 February 18, 2021 Key metrics in USD bn 4Q20 3Q20 4Q19 2020 2019 Net margin in bps 23 27 29 28 33 Net new assets 4.7 7.5 0.5 18.0 11.0 Client Business Volume 588 536 545 588 545 Number of RM 1,140 1,130 1,150 1,140 1,150 Net loans 59 57 55 59 55 Net new assets AM 7.1 5.4 7.5 17.0 21.7 Risk-weighted assets 49 49 45 49 45 Leverage exposure 118 114 102 118 102 Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix 1 Based on CHF figures converted into USD at weighted average exchange rates for P&L, and spot rates for AuM, client business volume, net loans, RWA and leverage exposure Adjusted key financials excl. significant items in USD mn 4Q20 3Q20 4Q19 2020 2019 Net revenues 1,394 1,252 1,435 5,268 5,487 Provision for credit losses 28 13 17 117 49 o/w CECL-related 11 8 - 20 - Total operating expenses 1,009 946 999 3,881 3,736 Pre-tax income 357 293 419 1,270 1,702 Reported pre-tax income (7) 236 643 1,109 2,086 Cost/income ratio 72% 76% 70% 74% 68% Return on regulatory capital† 24% 20% 29% 22% 30% PB
International Wealth Management in USD1Private Banking and Asset Management 55 February 18, 2021 Private Banking Adjusted key financials excl. significant items in USD mn 4Q20 3Q20 4Q19 2020 2019 Net interest income 338 331 373 1,354 1,429 Recurring commissions & fees 330 298 325 1,217 1,213 Transaction- and perf.-based 289 284 275 1,301 1,194 Other revenues - 4 4 (2) 3 Net revenues 957 916 977 3,869 3,839 Provision for credit losses 34 9 17 117 48 o/w CECL-related 16 3 - 20 - Total operating expenses 695 649 685 2,692 2,577 Pre-tax income 228 258 275 1,060 1,214 Reported pre-tax income 328 216 501 1,167 1,602 Cost/income ratio 73% 71% 70% 70% 67% Key metrics in USD bn 4Q20 3Q20 4Q19 2020 2019 Net margin in bps 23 27 29 28 33 Net new assets 4.7 7.5 0.5 18.0 11.0 Client Business Volume 588 536 545 588 545 Mandate penetration 34% 34% 34% 34% 34% Net loans 59 57 55 59 55 Number of RM 1,140 1,130 1,150 1,140 1,150 AM Adjusted key financials excl. significant items in USD mn 4Q20 3Q20 4Q19 2020 2019 Management fees 299 287 284 1,126 1,120 Performance & placement revenues 122 44 94 182 247 Investment & partnership income 16 5 80 91 281 Net revenues 437 336 458 1,399 1,648 Provision for credit losses (6) 4 - - 1 o/w CECL-related (5) 5 - - - Total operating expenses 314 297 314 1,189 1,159 Pre-tax income 129 35 144 210 488 Reported pre-tax income (335) 20 142 (58) 484 Cost/income ratio 72% 88% 69% 85% 70% Key metrics in USD bn 4Q20 3Q20 4Q19 2020 2019 Net new assets 7.1 5.4 7.5 17.0 21.7 Assets under management 500 476 452 500 452 Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix 1 Based on CHF figures converted into USD at weighted average exchange rates for P&L, and spot rates for AuM, client business volume and net loans
Asia Pacific in USD1 56 February 18, 2021 Key metrics in USD bn 4Q20 3Q20 4Q19 2020 2019 Net margin in bps 36 33 37 36 38 Net new assets (1.3) 2.3 0.6 8.9 8.7 Client Business Volume 402 361 331 402 331 Number of RM 600 600 600 600 600 Net loans 44 42 47 44 47 Risk-weighted assets 30 29 33 30 33 Leverage exposure 84 80 84 84 84 Adjusted key financials excl. significant items in USD mn 4Q20 3Q20 4Q19 2020 2019 Net interest income 269 281 335 1,145 1,126 Recurring commissions & fees 99 93 96 373 381 Transaction-based 460 425 331 1,788 1,444 Other revenues - 1 2 3 3 Net revenues 828 800 764 3,309 2,954 Provision for credit losses 7 49 13 248 55 o/w CECL-related 3 10 - 35 - Total operating expenses 599 554 544 2,237 2,065 Pre-tax income 222 197 207 824 834 Reported pre-tax income 264 194 207 889 932 Cost/income ratio 72% 69% 71% 68% 70% Return on regulatory capital† 23% 20% 18% 20% 19% Note: Unless otherwise stated, all financial numbers presented and discussed are adjusted and exclude significant items. Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix † RoRC is a non-GAAP financial measure, see Appendix 1 Based on CHF figures converted into USD at weighted average exchange rates for P&L, and spot rates for AuM, client business volume, net loans, RWA and leverage exposure
57 February 18, 2021 We achieved strong growth in underlying pre-tax income Group pre-tax income in CHF mn +13% Adjusted & excluding significant items & at FXC1 Reported Note: Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix1 At constant average 2019 FX rates (27)% +6% Adjusted & excluding significant items
58 February 18, 2021 Reinvigorated positive operating leverage Note: Results excluding items included in our reported results are non-GAAP financial measures. For further details and reconciliation information, see Appendix. Growth percentages are calculated on the non-rounded results found in the Appendix 1 At constant average 2016 FX rates, calculated by converting the CHF amount of net revenues and operating expenses for 2020 back to the original currency on a monthly basis at the respective spot FX rate. The respective amounts are then converted back to CHF applying the average 2016 FX rate from the period against which the FX impact is measured. Average FX rates apply a straight line average of monthly FX rates for major currencies Pre-provision profit Operating expenses Net revenues 2017 2018 2019 2020 17.9 16.4 16.9 16.6 20.9 20.8 21.4 22.1 3.0 4.4 4.5 5.5 Group adjusted results excl. significant items; in CHF bn 2020 vs. 2016CAGR (3)% +3% 0.9 2016 19.1 20.0 2020 vs. 2016 CAGR(at FXC1) (2)% +4%
59 February 18, 2021 Our loan book is highly collateralized with a majorityoriginated in Switzerland CHF 294 bn1 Group gross loans 87% of Group loans are collateralizedSUB accounts for 60% of Group gross loans; Switzerland has historically had a low credit loss experience compared to other regions2Average provision for credit losses ratio3 2010-2020 of <10 bps for Credit Suisse Group and its Wealth Management-related businesses 1 Group gross loans per 4Q20 2 Source: Bloomberg, company filings. Based on provision for credit losses over average loan ratio of banks in Switzerland, the U.S., the UK and Europe (2006 to 9M20 average). Banks in Switzerland include Banque Cantonale Vaudoise (only full year and half year data), Credit Suisse, UBS; banks in the U.S. include Bank of America, Citigroup, JP Morgan, Wells Fargo; banks in the UK include Barclays, Lloyds, RBS; banks in Europe include ABN Amro (starting from 2009), BBVA, BNP Paribas, Commerzbank, Crédit Agricole, Deutsche Bank, Erste Group, ING Group, Intesa Sanpaolo, KBC, Nordea, Santander, Société Générale, Unicredit 3 Provision for credit losses related to loans held at amortized cost as % of average gross loans held at amortized cost SUB share of Group gross loans CHF 294 bn1 SUB Otherdivisions CollateralizedUncollateralized
60 February 18, 2021 Oil & Gas / Leveraged Finance exposures Oil & Gas exposure1in USD bn Leveraged Finance exposure2in USD bn (5)% (12)% 1 Oil & Gas net lending exposure in Corporate Bank 2 Represents non-Investment Grade underwriting exposure 9.5 7.3 7.7 2.9Non-IG 4.8IG 3.0 7.5 3.4Non-IG 3.1Non-IG 4.1IG 6.9 3.8IG 6.2 3.0Non-IG 8.4 2.9Non-IG 7.5
61 February 18, 2021 Currency mix & Group capital metrics Currency mix capital metric3 A 10% strengthening / weakening of the USD (vs. CHF) would have a (1.8) bps / +2.0 bps impact on theBIS CET1 ratio Basel III Risk-weighted assets Swiss leverage exposure CHF EUR Other USD USD CET1 capital 4 CHF Credit Suisse Group results Applying a +/- 10% movement on the average FX rates for 2020, the sensitivities are:USD/CHF impact on 2020 pre-tax income by CHF +354 / (354) mnEUR/CHF impact on 2020 pre-tax income by CHF +153 / (153) mn Sensitivity analysis on Group results2 2020in CHF mn Contribution Swiss Universal Bank International Wealth Management Asia Pacific Investment Bank Group results CHF USD EUR GBP Other Net revenues 22,389 26% 49% 10% 3% 12%Total expenses1 18,922 31% 40% 4% 9% 16% Net revenues 5,615 78% 15% 4% 1% 2%Total expenses1 3,511 83% 11% 2% 2% 2% Net revenues 4,837 26% 48% 17% 2% 7%Total expenses1 3,785 44% 27% 9% 8% 12% Net revenues 3,155 4% 67% 4% 1% 24%Total expenses1 2,327 12% 27% -% 1% 60% Net revenues 9,098 1% 65% 13% 5% 16%Total expenses1 7,443 4% 58% 5% 17% 16% 1 Total expenses include provisions for credit losses 2 Sensitivity analysis based on weighted average exchange rates of USD/CHF of 0.95 and EUR/CHF of 1.07 for the 2020 results 3 Data based on December 2020 month-end currency mix 4 Reflects actual capital positions in consolidated Group legal entities (net assets) including net asset hedges less applicable Basel III regulatory adjustments (e.g. goodwill)
62 Reconciliation of adjustment items (1/10) Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures. February 18, 2021 Group in CHF mn SUB in CHF mn 4Q20 3Q20 4Q19 4Q18 2020 2019 2018 2017 2016 2015 2014 4Q20 3Q20 4Q19 4Q18 2020 2019 2018 2017 2016 Net revenues reported 5,221 5,198 6,190 4,801 22,389 22,484 20,920 20,900 20,323 23,797 26,242 1,393 1,294 1,734 1,336 5,615 5,905 5,443 5,314 5,720 FVoD - - - - - - - - - (298) (543) - - - - - - - - - Real estate (gains)/losses (15) - (146) (12) (15) (251) (28) - (424) (95) (414) (15) - (106) (6) (15) (223) (21) - (366) (Gains)/losses on business sales - - 2 (3) - 2 (71) 13 58 (34) (101) - - - - - - (37) - - Net revenues adjusted 5,206 5,198 6,046 4,786 22,374 22,235 20,821 20,913 19,957 23,370 25,184 1,378 1,294 1,628 1,330 5,600 5,682 5,385 5,314 5,354 o/w related to InvestLab transfer - - - - 268 327 - - - - - - - - - 25 98 - - - o/w related to Allfunds Group revaluation 127 - - - 127 - - - - - - 38 - - - 38 - - - - o/w related to SIX revaluation 158 - 498 - 158 498 - - - - - 97 - 306 - 97 306 - - - o/w Pfandbriefbank gain - - - - 134 - - - - - - - - - - 134 - - - - o/w York impairment (414) - - - (414) - - - - - - - - - - - - - - - Net revenues adj. excl. significant items 5,335 5,198 5,548 4,786 22,101 21,410 20,821 20,913 19,957 23,370 25,184 1,243 1,294 1,322 1,330 5,306 5,278 5,385 5,314 5,354 Provision for credit losses 138 94 146 59 1,096 324 245 210 252 324 186 66 52 43 26 270 109 127 75 79 Total operating expenses reported 5,171 4,301 4,830 4,147 17,826 17,440 17,303 18,897 22,337 25,895 22,429 840 812 824 852 3,241 3,223 3,325 3,576 3,619 Goodwill impairment - - - - - - - - - (3,797) - - - - - - - - - - Restructuring expenses (50) (107) - (136) (157) - (626) (455) (540) (355) - (3) (41) - (21) (44) - (101) (59) (60) Major litigation provisions (757) (152) (326) (82) (988) (389) (244) (493) (2,707) (820) (2,436) (44) - - (35) (45) (3) (37) (49) (19) Expenses related to real estate disposals (28) (25) (57) - (51) (108) - - - - - (3) - (2) - (3) (12) - - - Expenses related to business sales - - - (48) - - (51) (8) - - - - - - - - - - - - Total operating expenses adjusted 4,336 4,017 4,447 3,881 16,630 16,943 16,382 17,941 19,090 20,923 19,993 790 771 822 796 3,149 3,208 3,187 3,468 3,540 Pre-tax income/(loss) reported (88) 803 1,214 595 3,467 4,720 3,372 1,793 (2,266) (2,422) 3,627 487 430 867 458 2,104 2,573 1,991 1,663 2,022 Total adjustments and significant items 949 284 (259) 251 908 (577) 822 969 2,881 4,545 1,378 (100) 41 (410) 50 (217) (612) 80 108 (287) Pre-tax income/(loss) adj. excl. significant items 861 1,087 955 846 4,375 4,143 4,194 2,762 615 2,123 5,005 387 471 457 508 1,887 1,961 2,071 1,771 1,735 Pre-provision profit/(loss) adj. excl. significant items 999 1,181 1,101 905 5,471 4,467 4,439 2,972 867 2,447 5,191 453 523 500 534 2,157 2,070 2,198 1,846 1,814
63 Reconciliation of adjustment items (2/10) Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures. February 18, 2021 SUB PC in CHF mn SUB C&IC in CHF mn 4Q20 3Q20 2Q20 1Q20 4Q19 4Q18 2020 2019 2018 2017 2016 4Q20 3Q20 4Q19 4Q18 2020 2019 2018 2017 2016 Net revenues reported 750 700 836 769 968 716 3,055 3,186 2,903 2,826 3,199 643 594 766 620 2,560 2,719 2,540 2,488 2,521 Real estate (gains)/losses (15) - - - (104) (6) (15) (221) (21) - (366) - - (2) - - (2) - - - (Gains)/losses on business sales - - - - - - - - (19) - - - - - - - - (18) - - Net revenues adjusted 735 700 836 769 864 710 3,040 2,965 2,863 2,826 2,833 643 594 764 620 2,560 2,717 2,522 2,488 2,521 o/w related to InvestLab transfer - - - - - - - - - - - - - - - 25 98 - - - o/w related to Allfunds Group revaluation - - - - - - - - - - - 38 - - - 38 - - - - o/w related to SIX revaluation 47 - - - 149 - 47 149 - - - 50 - 157 - 50 157 - - - o/w Pfandbriefbank gain - - 134 - - - 134 - - - - - - - - - - - - - o/w York impairment - - - - - - - - - - - - - - - - - - - - Net revenues adj. excl. significant items 688 700 702 769 715 710 2,859 2,816 2,863 2,826 2,833 555 594 607 620 2,447 2,462 2,522 2,488 2,521 Provision for credit losses 17 5 28 12 11 (4) 62 46 30 42 39 49 47 32 30 208 63 97 33 40 Total operating expenses reported 476 495 464 478 483 468 1,913 1,858 1,906 2,066 2,104 364 317 341 384 1,328 1,365 1,419 1,510 1,515 Restructuring expenses 1 (36) - - - (10) (35) - (66) (53) (51) (4) (5) - (11) (9) - (35) (6) (9) Major litigation provisions - - - - - - - - - (6) - (44) - - (35) (45) (3) (37) (43) (19) Expenses related to real estate disposals (3) - - - (1) - (3) (8) - - - - - (1) - - (4) - - - Expenses related to business sales - - - - - - - - - - - - - - - - - - - - Total operating expenses adjusted 474 459 464 478 482 458 1,875 1,850 1,840 2,007 2,053 316 312 340 338 1,274 1,358 1,347 1,461 1,487 Pre-tax income/(loss) reported 257 200 344 279 474 252 1,080 1,282 967 718 1,056 230 230 393 206 1,024 1,291 1,024 945 966 Total adjustments and significant items (60) 36 (134) - (252) 4 (158) (362) 26 59 (315) (40) 5 (158) 46 (59) (250) 54 49 28 Pre-tax income/(loss) adj. excl. significant items 197 236 210 279 222 256 922 920 993 777 741 190 235 235 252 965 1,041 1,078 994 994 Pre-provision profit/(loss) adj. excl. significant items 214 241 238 291 233 252 984 966 1,023 819 780 239 282 267 282 1,173 1,104 1,175 1,027 1,034
64 Reconciliation of adjustment items (3/10) Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures. February 18, 2021 IWM in CHF mn IWM PB in CHF mn 4Q20 3Q20 4Q19 4Q18 2020 2019 2018 2017 2016 4Q20 3Q20 2Q20 1Q20 4Q19 4Q18 2020 2019 2018 2017 2016 Net revenues reported 952 1,142 1,636 1,369 4,837 5,816 5,320 5,055 4,721 974 836 905 1,032 1,186 905 3,747 4,181 3,782 3,532 3,380 Real estate (gains)/losses - - (32) (2) - (45) (2) - (54) - - - - (32) (2) - (45) (2) - (54) (Gains)/losses on business sales - - - (24) - - (55) 28 - - - - - - - - - (37) - - Net revenues adjusted 952 1,142 1,604 1,343 4,837 5,771 5,263 5,083 4,667 974 836 905 1,032 1,154 903 3,747 4,136 3,743 3,532 3,326 o/w related to InvestLab transfer - - - - 218 131 - - - - - - 15 - - 15 131 - - - o/w related to Allfunds Group revaluation 51 - - - 51 - - - - 51 - - - - - 51 - - - - o/w related to SIX revaluation 61 - 192 - 61 192 - - - 61 - - - 192 - 61 192 - - - o/w Pfandbriefbank gain - - - - - - - - - - - - - - - - - - - - o/w York impairment (414) - - - (414) - - - - - - - - - - - - - Net revenues adj. excl. significant items 1,254 1,142 1,412 1,343 4,921 5,448 5,263 5,083 4,667 862 836 905 1,017 962 903 3,620 3,813 3,743 3,532 3,326 Provision for credit losses 25 12 17 16 110 49 37 28 20 31 8 32 39 17 16 110 48 37 28 20 Total operating expenses reported 939 915 989 978 3,675 3,702 3,673 3,745 3,612 650 631 617 648 678 627 2,546 2,547 2,511 2,555 2,557 Restructuring expenses (26) (29) - (33) (55) - (115) (70) (54) (21) (16) - - - (25) (37) - (89) (44) (47) Major litigation provisions (1) (20) 3 - 11 30 - (48) 12 (1) (20) 32 - 3 - 11 30 - (48) 12 Expenses related to real estate disposals (4) (4) (9) - (7) (21) - - - (3) (3) - 1 (7) - (5) (17) - - - Expenses related to business sales - - - (47) - - (47) - - - - - - - - - - - - - Total operating expenses adjusted 908 862 983 898 3,624 3,711 3,511 3,627 3,570 625 592 649 649 674 602 2,515 2,560 2,422 2,463 2,522 Pre-tax income/(loss) reported (12) 215 630 375 1,052 2,065 1,610 1,282 1,089 293 197 256 345 491 262 1,091 1,586 1,234 949 803 Total adjustments and significant items 333 53 (218) 54 135 (377) 105 146 (12) (87) 39 (32) (16) (220) 23 (96) (381) 50 92 (19) Pre-tax income/(loss) adj. excl. significant items 321 268 412 429 1,187 1,688 1,715 1,428 1,077 206 236 224 329 271 285 995 1,205 1,284 1,041 784 Pre-provision profit/(loss) adj. excl. significant items 346 280 429 445 1,297 1,737 1,752 1,456 1,097 237 244 256 368 288 301 1,105 1,253 1,321 1,069 804
65 Reconciliation of adjustment items (4/10) Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures. February 18, 2021 IWM AM in CHF mn APAC in CHF mn 4Q20 3Q20 4Q19 4Q18 2020 2019 2018 2017 2016 4Q20 3Q20 2Q20 1Q20 4Q19 4Q18 2020 2019 2018 2017 2016 Net revenues reported (22) 306 450 464 1,090 1,635 1,538 1,523 1,341 784 728 808 835 750 584 3,155 3,029 2,759 2,814 2,658 Real estate (gains)/losses - - - - - - - - - - - - - - - - - - - - (Gains)/losses on business sales - - - (24) - - (18) 28 - - - - - - - - - - - - Net revenues adjusted (22) 306 450 440 1,090 1,635 1,520 1,551 1,341 784 728 808 835 750 584 3,155 3,029 2,759 2,814 2,658 o/w related to InvestLab transfer - - - - 203 - - - - - - - 25 - - 25 98 - - - o/w related to Allfunds Group revaluation - - - - - - - - - 38 - - - - - 38 - - - - o/w related to SIX revaluation - - - - - - - - - - - - - - - - - - - - o/w Pfandbriefbank gain - - - - - - - - - - - - - - - - - - - - o/w York impairment (414) - - - (414) - - - - - - - - - - - - - Net revenues adj. excl. significant items 392 306 450 440 1,301 1,635 1,520 1,551 1,341 746 728 808 810 750 584 3,092 2,931 2,759 2,814 2,658 Provision for credit losses (6) 4 - - - 1 - - - 6 45 86 99 14 9 236 55 28 16 27 Total operating expenses reported 289 284 311 351 1,129 1,155 1,162 1,190 1,055 541 506 526 518 535 482 2,091 2,052 2,099 2,064 2,041 Restructuring expenses (5) (13) - (8) (18) - (26) (26) (7) (2) (2) - - - (12) (4) - (37) (25) (17) Major litigation provisions - - - - - - - - - - - - - - (1) - - (79) - - Expenses related to real estate disposals (1) (1) (2) - (2) (4) - - - - - - - - - - - - - - Expenses related to business sales - - - (47) - - (47) - - - - - - - - - - - - - Total operating expenses adjusted 283 270 309 296 1,109 1,151 1,089 1,164 1,048 539 504 526 518 535 469 2,087 2,052 1,983 2,039 2,024 Pre-tax income/(loss) reported (305) 18 139 113 (39) 479 376 333 286 237 177 196 218 201 93 828 922 632 734 590 Total adjustments and significant items 420 14 2 31 231 4 55 54 7 (36) 2 - (25) - 13 (59) (98) 116 25 17 Pre-tax income/(loss) adj. excl. significant items 115 32 141 144 192 483 431 387 293 201 179 196 193 201 106 769 824 748 759 607 Pre-provision profit/(loss) adj. excl. significant items 109 36 141 144 192 484 431 387 293 207 224 282 292 215 115 1,005 879 776 775 634
66 Reconciliation of adjustment items (5/10) Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures. February 18, 2021 IB in USD mn CC in CHF mn 4Q20 3Q20 4Q19 4Q18 2020 2019 2018 2017 2016 4Q20 3Q20 4Q19 4Q18 2020 2019 2018 2017 2016 Net revenues reported 2,337 2,245 1,977 1,606 9,718 8,216 8,215 8,688 8,572 (17) (13) 123 84 (316) (427) 102 87 75 Real estate (gains)/losses - - (7) - - (7) - - - - - (1) (4) - 24 (4) - - (Gains)/losses on business sales - - - - - - - - - - - 2 21 - 2 21 23 52 Net revenues adjusted 2,337 2,245 1,970 1,606 9,718 8,209 8,215 8,688 8,572 (17) (13) 124 101 (316) (401) 119 110 127 o/w related to InvestLab transfer - - - - - - - - - - - - - - - - - - o/w related to Allfunds Group revaluation - - - - - - - - - - - - - - - - - - o/w related to SIX revaluation - - - - - - - - - - - - - - - - - - o/w Pfandbriefbank gain - - - - - - - - - - - - - - - - - - o/w York impairment - - - - - - - - - - - - - - - - - - Net revenues adj. excl. significant items 2,337 2,245 1,970 1,606 9,718 8,209 8,215 8,688 8,572 (17) (13) 124 101 (316) (401) 119 110 127 Provision for credit losses 42 (16) 69 8 489 105 52 61 15 3 (1) 5 1 9 7 1 - - Total operating expenses reported 1,977 1,856 1,851 1,650 7,469 7,078 7,313 7,573 7,998 1,070 377 657 65 1,847 1,432 399 868 817 Restructuring expenses (16) (36) - (101) (52) - (360) (235) (288) (5) (2) - (1) (7) - 1 (14) (6) Major litigation provisions - - - (2) (25) - (12) - (7) (712) (132) (329) (1) (930) (416) (1) (127) - Expenses related to real estate disposals (23) (23) (47) - (45) (78) - - - - - - - - 1 - - - Expenses related to business sales - - - - - - - (8) - - - - - - - - - - Total operating expenses adjusted 1,938 1,797 1,804 1,547 7,347 7,000 6,941 7,330 7,703 353 243 328 63 910 1,017 399 727 811 Pre-tax income/(loss) reported 318 405 57 (52) 1,760 1,033 850 1,054 559 (1,090) (389) (539) 18 (2,172) (1,866) (298) (781) (742) Total adjustments and significant items 39 59 40 103 122 71 372 243 295 717 134 330 19 937 441 17 164 58 Pre-tax income/(loss) adj. excl. significant items 357 464 97 51 1,882 1,104 1,222 1,297 854 (373) (255) (209) 37 (1,235) (1,425) (281) (617) (684) Pre-provision profit/(loss) adj. excl. significant items 399 448 166 59 2,371 1,209 1,274 1,358 869
67 Reconciliation of adjustment items (6/10) Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures. February 18, 2021 WM1 in CHF mn WM-related2 in CHF mn 4Q20 3Q20 4Q19 4Q18 2020 2019 2018 2017 2016 4Q20 3Q20 4Q19 4Q18 2020 2019 2018 2017 2016 Net revenues reported 2,508 2,264 2,904 2,205 9,957 10,396 9,444 9,172 9,237 3,129 3,164 4,120 3,289 13,607 14,750 13,522 13,183 13,099 Real estate (gains)/losses (15) - (136) (8) (15) (266) (23) - (420) (15) - (138) (8) (15) (268) (23) - (420) (Gains)/losses on business sales - - - - - - (56) - - - - - (24) - - (92) 28 - Net revenues adjusted 2,493 2,264 2,768 2,197 9,942 10,130 9,365 9,172 8,817 3,114 3,164 3,982 3,257 13,592 14,482 13,407 13,211 12,679 o/w related to InvestLab transfer - - - - 40 229 - - - - - - - 268 327 - - - o/w related to Allfunds Group revaluation 89 - - - 89 - - - - 127 - - - 127 - - - - o/w related to SIX revaluation 108 - 341 - 108 341 - - - 158 - 498 - 158 498 - - - o/w Pfandbriefbank gain - - - - 134 - - - - - - - - 134 - - - - o/w York impairment - - - - - - - - - (414) - - - (414) Net revenues adj. excl. significant items 2,296 2,264 2,427 2,197 9,571 9,560 9,365 9,172 8,817 3,243 3,164 3,484 3,257 13,319 13,657 13,407 13,211 12,679 Provision for credit losses 54 58 42 21 408 149 95 86 86 97 109 74 51 616 213 192 119 126 Total operating expenses reported 1,667 1,632 1,696 1,577 6,550 6,457 6,516 6,685 6,702 2,320 2,233 2,348 2,312 9,007 8,977 9,097 9,385 9,272 Restructuring expenses (22) (54) - (47) (76) - (192) (122) (115) (31) (72) - (66) (103) - (253) (154) (131) Major litigation provisions (1) (20) 3 (1) 11 30 (79) (54) 12 (45) (20) 3 (36) (34) 27 (116) (97) (7) Expenses related to real estate disposals (6) (3) (8) - (8) (25) - - - (7) (4) (11) - (10) (33) - - - Expenses related to business sales - - - - - - - - - - - - (47) - - (47) - - Total operating expenses adjusted 1,638 1,555 1,691 1,529 6,477 6,462 6,245 6,509 6,599 2,237 2,137 2,340 2,163 8,860 8,971 8,681 9,134 9,134 Pre-tax income/(loss) reported 787 574 1,166 607 2,999 3,790 2,833 2,401 2,449 712 822 1,698 926 3,984 5,560 4,233 3,679 3,701 Total adjustments and significant items (183) 77 (472) 40 (313) (841) 192 176 (317) 197 96 (628) 117 (141) (1,087) 301 279 (282) Pre-tax income/(loss) adj. excl. significant items 604 651 694 647 2,686 2,949 3,025 2,577 2,132 909 918 1,070 1,043 3,843 4,473 4,534 3,958 3,419 Pre-provision profit/(loss) adj. excl. significant items 658 709 736 668 3,094 3,098 3,120 2,663 2,218 1,006 1,027 1,144 1,094 4,459 4,686 4,726 4,077 3,545 1 SUB PC, IWM PB and APAC 2 SUB, IWM and APAC
68 Reconciliation of adjustment items (7/10) Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures. February 18, 2021 4Q20 adjusted financials excl. significant items in CHF mn SUB SUB PC SUB C&IC IWM IWM PB IWM AM APAC IB CC Group Net interest income 658 403 255 304 304 - 241 - - - Recurring commissions & fees 352 193 159 557 297 260 89 - - - Transaction-based 244 96 148 433 261 172 415 - - - Other revenues (11) (4) (7) (40) - (40) 1 - - - Net revenues adj. excl. significant items 1,243 688 555 1,254 862 392 746 2,109 (17) 5,335 Provision for credit losses 66 17 49 25 31 (6) 6 38 3 138 Total operating expenses adjusted 790 474 316 908 625 283 539 1,746 353 4,336 Pre-tax income/(loss) adj. excl. significant items 387 197 190 321 206 115 201 325 (373) 861 FX impacts in CHF mn Net interest income (5) - (5) (19) (19) - (18) - - - Recurring commissions & fees (5) (3) (2) (39) (29) (10) (7) - - - Transaction-based (8) (3) (5) (43) (30) (13) (32) - - - Other revenues 1 1 - 5 - 5 - - - - Net revenues adj. excl. significant items (17) (5) (12) (96) (78) (18) (57) (203) 5 (368) Provision for credit losses - - - (2) (2) - - (3) - (5) Total operating expenses adjusted (12) (5) (7) (54) (43) (11) (43) (139) (7) (255) Pre-tax income/(loss) adj. excl. significant items (5) - (5) (40) (33) (7) (14) (61) 12 (108) 4Q20 adjusted financials excl. significant items at FXC1 in CHF mn Net interest income 663 403 260 323 323 - 259 - - - Recurring commissions & fees 357 196 161 596 326 270 96 - - - Transaction-based 252 99 153 476 291 185 447 - - - Other revenues (12) (5) (7) (45) - (45) 1 - - - Net revenues adj. excl. significant items 1,260 693 567 1,350 940 410 803 2,312 (22) 5,703 Provision for credit losses 66 17 49 27 33 (6) 6 41 3 143 Total operating expenses adjusted 802 479 323 962 668 294 582 1,885 360 4,591 Pre-tax income/(loss) adj. excl. significant items 392 197 195 361 239 122 215 386 (385) 969 1 At constant average 4Q19 FX rates
69 Reconciliation of adjustment items (8/10) Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures. February 18, 2021 2020 adjusted financials excl. significant items in CHF mn SUB SUB PC SUB C&IC IWM IWM PB IWM AM APAC IB CC Group Net interest income 2,683 1,614 1,069 1,265 1,265 - 1,071 - - - Recurring commissions & fees 1,440 775 665 2,139 1,136 1,003 348 - - - Transaction-based 1,235 480 755 1,598 1,221 377 1,670 - - - Other revenues (52) (10) (42) (81) (2) (79) 3 - - - Net revenues adj. excl. significant items 5,306 2,859 2,447 4,921 3,620 1,301 3,092 9,098 (316) 22,101 Provision for credit losses 270 62 208 110 110 - 236 471 9 1,096 Total operating expenses adjusted 3,149 1,875 1,274 3,624 2,515 1,109 2,087 6,860 910 16,630 Pre-tax income/(loss) adj. excl. significant items 1,887 922 965 1,187 995 192 769 1,767 (1,235) 4,375 FX impacts in CHF mn Net interest income (19) (2) (17) (62) (62) - (63) - - - Recurring commissions & fees (17) (10) (7) (123) (92) (31) (22) - - - Transaction-based (32) (11) (21) (117) (96) (21) (96) - - - Other revenues - - - 9 - 9 - - - - Net revenues adj. excl. significant items (68) (23) (45) (293) (250) (43) (181) (603) 11 (1,134) Provision for credit losses (1) - (1) (4) (4) - (10) (18) - (33) Total operating expenses adjusted (38) (19) (19) (185) (144) (41) (126) (447) (18) (814) Pre-tax income/(loss) adj. excl. significant items (29) (4) (25) (104) (102) (2) (45) (138) 29 (287) 2020 adjusted financials excl. significant items at FXC1 in CHF mn Net interest income 2,702 1,616 1,086 1,327 1,327 - 1,134 - - - Recurring commissions & fees 1,457 785 672 2,262 1,228 1,034 370 - - - Transaction-based 1,267 491 776 1,715 1,317 398 1,766 - - - Other revenues (52) (10) (42) (90) (2) (88) 3 - - - Net revenues adj. excl. significant items 5,374 2,882 2,492 5,214 3,870 1,344 3,273 9,701 (327) 23,235 Provision for credit losses 271 62 209 114 114 - 246 489 9 1,129 Total operating expenses adjusted 3,187 1,894 1,293 3,809 2,659 1,150 2,213 7,307 928 17,444 Pre-tax income/(loss) adj. excl. significant items 1,916 926 990 1,291 1,097 194 814 1,905 (1,264) 4,662 1 At constant average 2019 FX rates
70 Reconciliation of adjustment items (9/10) Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures. February 18, 2021 IWM in USD mn1 IWM PB in USD mn1 IWM AM in USD mn1 4Q20 3Q20 4Q19 2020 2019 4Q20 3Q20 4Q19 2020 2019 4Q20 3Q20 4Q19 2020 2019 Net revenues reported 1,064 1,252 1,666 5,165 5,863 1,085 916 1,208 4,013 4,215 (21) 336 458 1,152 1,648 Real estate (gains)/losses - - (33) - (47) - - (33) - (47) - - - - - (Gains)/losses on business sales - - - - - - - - - - - - - - - Net revenues adjusted 1,064 1,252 1,633 5,165 5,816 1,085 916 1,175 4,013 4,168 (21) 336 458 1,152 1,648 o/w related to InvestLab transfer - - - 227 131 - - - 16 131 - - - 211 - o/w related to Allfunds Group revaluation 58 - - 58 - 58 - - 58 - - - - - - o/w related to SIX revaluation 70 - 198 70 198 70 - 198 70 198 - - - - - o/w Pfandbriefbank gain - - - - - - - - - - - - - - - o/w York impairment (458) - - (458) - - - - - - (458) - - (458) - Net revenues adj. excl. significant items 1,394 1,252 1,435 5,268 5,487 957 916 977 3,869 3,839 437 336 458 1,399 1,648 Provision for credit losses 28 13 17 117 49 34 9 17 117 48 (6) 4 - - 1 Total operating expenses reported 1,043 1,003 1,006 3,939 3,728 723 691 690 2,729 2,565 320 312 316 1,210 1,163 Restructuring expenses (29) (31) - (60) - (24) (17) - (41) - (5) (14) - (19) - Major litigation provisions (1) (22) 3 10 30 (1) (22) 3 10 30 - - - - - Expenses related to real estate disposals (4) (4) (10) (8) (22) (3) (3) (8) (6) (18) (1) (1) (2) (2) (4) Expenses related to business sales - - - - - - - - - - - - - - - Total operating expenses adjusted 1,009 946 999 3,881 3,736 695 649 685 2,692 2,577 314 297 314 1,189 1,159 Pre-tax income/(loss) reported (7) 236 643 1,109 2,086 328 216 501 1,167 1,602 (335) 20 142 (58) 484 Total adjustments and significant items 364 57 (224) 161 (384) (100) 42 (226) (107) (388) 464 15 2 268 4 Pre-tax income/(loss) adj. excl. significant items 357 293 419 1,270 1,702 228 258 275 1,060 1,214 129 35 144 210 488 Pre-provision profit/(loss) adj. excl. significant items 385 306 436 1,387 1,751 262 267 292 1,177 1,262 123 39 144 210 489 1 Based on CHF figures converted into USD at weighted average exchange rates
71 Reconciliation of adjustment items (10/10) Results excluding items included in our reported results are non-GAAP financial measures. During the implementation of our strategy, we will measure the progress achieved by our underlying business performance. Management believes that such results provide a useful presentation of our operating results for 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. Provided below is a reconciliation to the most directly comparable US GAAP measures. February 18, 2021 APAC in USD mn1 4Q20 3Q20 4Q19 2020 2019 Net revenues reported 871 800 764 3,378 3,052 Real estate (gains)/losses - - - - - (Gains)/losses on business sales - - - - - Net revenues adjusted 871 800 764 3,378 3,052 o/w related to InvestLab transfer - - - 26 98 o/w related to Allfunds Group revaluation 43 - - 43 - o/w related to SIX revaluation - - - - - o/w Pfandbriefbank gain - - - - - o/w York impairment - - - - - Net revenues adj. excl. significant items 828 800 764 3,309 2,954 Provision for credit losses 7 49 13 248 55 Total operating expenses reported 600 557 544 2,241 2,065 Restructuring expenses (1) (3) - (4) - Major litigation provisions - - - - - Expenses related to real estate disposals - - - - - Expenses related to business sales - - - - - Total operating expenses adjusted 599 554 544 2,237 2,065 Pre-tax income/(loss) reported 264 194 207 889 932 Total adjustments and significant items (42) 3 - (65) (98) Pre-tax income/(loss) adj. excl. significant items 222 197 207 824 834 Pre-provision profit/(loss) adj. excl. significant items 229 246 220 1,072 889 1 Based on CHF figures converted into USD at weighted average exchange rates
Notes 72 February 18, 2021 General notesThroughout the presentation rounding differences may occurUnless otherwise noted, all CET1 capital, CET1 ratio, Tier 1 leverage ratio, risk-weighted assets and leverage exposure figures shown in this presentation are as of the end of the respective period and, for periods prior to 2019, on a “look-through” basisGross and net margins are shown in basis pointsGross margin = net revenues annualized / average AuM; net margin = pre-tax income annualized / average AuM. Net margin excluding certain significant items, as disclosed herein, is calculated excluding those items applying the same methodologyMandate penetration reflects advisory and discretionary mandate volumes as a percentage of AuM, excluding those from the external asset manager businessUnless otherwise noted, FX impact is calculated by converting the CHF amount of net revenues, provision for credit losses and operating expenses for 2020 back to the original currency on a monthly basis at the respective spot FX rate. The respective amounts are then converted back to CHF applying the average 2019 FX rate from the period against which the FX impact is measured. Average FX rates apply a straight line average of monthly FX rates for major currenciesWealth Management businesses include SUB PC, IWM PB and APAC and related figures refer to their combined resultsWealth Management-related businesses include SUB, IWM and APAC and related figures refer to their combined resultsPre-provision profit refers to pre-tax income excluding provision for credit lossesClient Business Volume includes assets under management, custody assets and net loans Specific notes† Prior to 3Q20, regulatory capital was calculated as the worst of 10% of RWA and 3.5% of leverage exposure and return on regulatory capital (a non-GAAP financial measure) was calculated using income / (loss) after tax and assumed a tax rate of 30%. In 3Q20, we updated our calculation approach, following which regulatory capital is calculated as the average of 10% of RWA and 3.5% of leverage exposure and return on regulatory capital (a non-GAAP financial measure) is calculated using income / (loss) after tax and assumes a tax rate of 30% for periods prior to 2020 and 25% from 2020 onwards. For periods in 2020, for purposes of calculating Group return on regulatory capital, leverage exposure excludes cash held at central banks, after adjusting for the dividend paid in 2020. For the Investment Bank division, 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.‡ Return on tangible equity, a non-GAAP financial measure, is calculated as annualized net income attributable to shareholders divided by average tangible shareholders’ equity. Tangible shareholders’ equity, a non-GAAP financial measure, is calculated by deducting goodwill and other intangible assets from total shareholders’ equity as presented in our balance sheet. Tangible book value, a non-GAAP financial measure, is equal to tangible shareholders’ equity. Tangible book value per share, a non-GAAP financial measure, is calculated by dividing tangible shareholders' equity by total number of shares outstanding. Management believes that tangible shareholders’ equity/tangible book value, return on tangible equity and tangible book value per share are meaningful as they are measures used and relied upon by industry analysts and investors to assess valuations and capital adequacy.For end-4Q18, tangible shareholders’ equity excluded goodwill of CHF 4,766 mn and other intangible assets of CHF 219 mn from total shareholders’ equity of CHF 43,922 mn as presented in our balance sheet.For end-1Q19, tangible shareholders’ equity excluded goodwill of CHF 4,807 mn and other intangible assets of CHF 224 mn from total shareholders’ equity of CHF 43,825 mn as presented in our balance sheet. For end-2Q19, tangible shareholders’ equity excluded goodwill of CHF 4,731 mn and other intangible assets of CHF 216 mn from total shareholders’ equity of CHF 43,673 mn as presented in our balance sheet. For end-3Q19, tangible shareholders’ equity excluded goodwill of CHF 4,760 mn and other intangible assets of CHF 219 mn from total shareholders’ equity of CHF 45,150 mn as presented in our balance sheet.For end-4Q19, tangible shareholders’ equity excluded goodwill of CHF 4,663 mn and other intangible assets of CHF 291 mn from total shareholders’ equity of CHF 43,644 mn as presented in our balance sheet.For end-1Q20, tangible shareholders’ equity excluded goodwill of CHF 4,604 mn and other intangible assets of CHF 279 mn from total shareholders’ equity of CHF 48,675 mn as presented in our balance sheet. For end-2Q20, tangible shareholders’ equity excluded goodwill of CHF 4,676 mn and other intangible assets of CHF 273 mn from total shareholders’ equity of CHF 46,535 mn as presented in our balance sheet.For end-3Q20, tangible shareholders’ equity excluded goodwill of CHF 4,577 mn and other intangible assets of CHF 256 mn from total shareholders’ equity of CHF 45,740 mn as presented in our balance sheet. For end-4Q20, tangible shareholders’ equity excluded goodwill of CHF 4,426 mn and other intangible assets of CHF 237 mn from total shareholders’ equity of CHF 42,677 mn as presented in our balance sheet. Shares outstanding were 2,436.2 mn at end-4Q19 and 2,406.1 mn at end-4Q20.
73 February 18, 2021 AbbreviationsACL = Allowance for credit losses; Adj. = Adjusted; AGM = Annual General Meeting; AM = Asset Management; APAC = Asia Pacific; ARU = Asset Resolution Unit; attr. = attributable; AuM = Assets under Management; Avg. = Average; BAC = Bank of America; BARC = Barclays; BCBS = Basel Committee on Banking Supervision; BIS = Bank for International Settlements; BoD = Board of Directors; bps = basis points; C&IC = Corporate & Institutional Clients; CB = Central Bank; CBV = Client Business Volume; CDP = Carbon Disclosure Project; CECL = Current Expected Credit Losses; CET1 = Common Equity Tier 1; Citi = Citibank; Corp. Ctr. = Corporate Center; COVID-19 = Coronavirus disease 2019; CRCO = Chief Risk & Compliance Officer; CSX = Credit Suisse X; DB = Deutsche Bank; DCM = Debt Capital Markets; E = Estimate; e.g. = for example; ECM = Equity Capital Markets; EMEA = Europe, Middle East and Africa; ESG = Environmental, Social and Governance; ExB = Executive Board; excl. = excluding; FINMA = Swiss Financial Market Supervisory Authority; FVoD = Fair Value on own Debt; FX = Foreign Exchange; FXC = FX Constant; G&A = General and Administrative; GAAP = Generally Accepted Accounting Principles; GDP = Gross Domestic Product; GS = Goldman Sachs; GTS = Global Trading Solutions; HQLA = High Quality Liquid Assets; IB = Investment Bank; IBCM = Investment Banking Capital Markets; IG = Investment Grade; incl. = including; IPO = Initial Public Offering; IWM = International Wealth Management; JPM = JP Morgan; LCR = Liquidity Coverage Ratio; Lev Fin = Leveraged Finance; M&A = Mergers & Acquisitions; MS = Morgan Stanley; MSCI = Morgan Stanley Capital International; MtM = Mark to Market; NAB = Neue Aargauer Bank; NGO = Non-Governmental Organization; NNA = Net New Assets; o/w = of which; p.a. = per anum; PB = Private Banking; PC = Private Clients; PCL = Provision for credit losses; PE = Private Equity; pp. = percentage point; PTI = Pre-tax income; QoQ = Quarter on Quarter; RM = Relationship Manager; RoA = Return on Assets; RoRC = Return on Regulatory Capital; RoTE = Return on Tangible Equity; RWA = Risk-weighted assets; S&T = Sales and Trading; sign. = significant; SIX = Swiss Infrastructure and Exchange; SoW = Share of Wallet; SPAC = Special Purpose Acquisition Company; SRI = Sustainability, Research & Investment Solutions; SRU = Strategic Resolution Unit; SUB = Swiss Universal Bank; TBVPS = Tangible Book Value Per Share; TNFD = Taskforce on Nature-related Financial Disclosure; U/HNW = (Ultra) High Net Worth; vs. = versus; WEF = World Economic Forum; WM = Wealth Management; YoY = Year on year; YTD = Year-to-date
February 18, 2021 74
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.
CREDIT SUISSE GROUP AG and CREDIT SUISSE AG
(Registrants)
Date: February 18, 2021
By:
/s/ Thomas Gottstein /s/ David R. Mathers
Thomas Gottstein David R. Mathers
Chief Executive Officer Chief Financial Officer