Credit Suisse European Financials West Coast Conference CS ... · Significant investments in international expansion. International growth Strong international presence – Added

Credit Suisse European Financials West Coast Conference

CS Private Banking Strategy Anthony DeChellisHead, CS Private Banking Americas

San Francisco, June 24, 2010

CS European Financials Conference San Francisco 24 June, 2010, Slide 2

Cautionary statement

Cautionary statement regarding forward-looking and non-GAAP information

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties, and we might not be able to achieve the

predictions, forecasts,

projections and other outcomes we describe or imply in forward-looking statements.

A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions we express in

these forward-looking

statements, including those we identify in "Risk Factors" in our

Annual Report on Form

20-F for the fiscal year ended December 31, 2009 filed with the US Securities and Exchange Commission, and in other public filings and press releases. We do not intend to update these forward-looking statements except as may be required by applicable laws.

This presentation contains non-GAAP financial information. Information needed to reconcile such non-GAAP financial information to the most directly comparable measures under GAAP can be found in Credit Suisse Group's annual report 2009 and first quarter report 2010.


Credit Suisse's private banking business: The investment case

Leading business model in attractive growth market

Scalable platform and strong operating leverage

Beneficiary of industry and regulatory trends


Wealth management industry hit by crisis, but with attractive long-term prospectsLong-term industry outlook

1) Source: Merrill Lynch/Capgemini World Wealth Report 2009; HNWI: investable assets over USD 1 mn; growth includes both market performance and new wealth generation

UHNWI & HNWI wealth (USD tr)1)

48.5

32.8

40.7

2013200920082007

~8% p.a.

Growth is driven by long-term secular trends

–

Financial market recovery–

GDP and wealth concentration–

"Private Investment Banking" needs–

Emerging markets growth–

Generational transfer of wealth

Competitive landscape is transforming

–

Shift in regional wealth distribution–

Many players weakened by crisis–

Winners benefit from flight to quality–

Multishore business model emerging–

Scale and ability to invest increasingly important

-20%


Private Banking met the challenges of the crisis well prepared

Industry challenges from the crisis Credit Suisse was well prepared

Productivity

–

Revenues down with AuM–

Flight into cash and low-margin products–

Deleveraging of portfolios

Continuous productivity management

–

Strong cost management (incl. OE, CoE1))–

Sophisticated price and margin management–

Prudent credit risk management–

New revenue streams from integrated bank

Regulation

–

Cross-border business under pressure–

Focus on investor protection

Anticipated regulatory developments

–

Leading cross-border framework–

Continued onshore build-out–

Initiatives around risk in advised services

Client confidence

–

Virtually all asset classes with losses–

Lack of support and guidance from banks/advisors

–

Emergence of "new" risks: counterparty, liquidity, fraud

Strong focus on clients

–

Industry-leading advisory process–

Segment-specific coverage and solutions ("close to clients")

–

Integrated bank as key differentiator

1) OE = Operational Excellence (lean sigma initiative); CoE

= Centers of Excellence


Credit Suisse now benefits from strong position

Strong capital base and cash flow

Reduced volatility and risk

Employer of choice

Integrated model


Continued strong NNA even in challenging environment

WMC NNA growth

1) Largest private banks and wealth managers globally, excluding

those not reporting NNA

WMC NNA 2009

Top competitors1)

(in CHF bn)

-13.6-7.6

0.45.15.17.48.710.6

35.3

CBACredit Suisse

I

-101.3

HGFED

6% medium term target

2007 2008 1Q10

6.3%

4.9% 5.1%

6.4%

2009


Consistent strategy –

accelerated implementation

Client-centric coverage

Market-aligned innovative solutions

Additional efficiency measures

Most admired bank for WM clients globally and for corporate and institutional clients in Switzerland

Client Centricity

International growth

Market share gains in

Switzerland

Integrating the banking businesses

Best peopleProductivity and financial performance

Accelerated implementation during last 24 months

Long-term strategy

Counter-cyclical growth investments

Focused upgrade of people portfolio


Significant investments in international expansionInternational growth

Strong international presence

–

Added 22 locations in 16 markets since 2007

–

Now 23 booking centers and 120 locations outside Switzerland

Counter-cyclical investments through

the market downturn

–

Opened Japan, Mexico, and Poland–

Continued platform upgrades in all regions

Net new RMs in WMC

2007 –

1Q10

Growth

vs. 2006

+20%

+32%

+57%

+8%

Asia Pacific

Americas

EMEA 200

150

130

Switzerland

130


Comprehensive cross-border model in place

... based on sound value proposition and approach

Industry-leading compliance framework

International growth

25%

4%

Reasons why clients book cross-border

Superior product and service offering

Client privacy

Geographical risk diversification

Multi-domiciled/multi-shore clients

Global market access


Segment-specific client coverage & value proposition: Recap of realignment in Switzerland

Increased client segment focus of our RMs on HNWI or Affluent

Increased RM portfolio focus in previously heterogeneous client portfoliosEnhanced effectiveness of our client servicing

Improved our branch network

in terms of client proximity and focus

Dedicated branches focusing on serving HNWI clientsAffluent clients being served with higher geographic proximity (fully leveraging our network of around 200 branches)

Increased leadership focus & broader opportunities for our frontline employees

Stronger focus on people management and supervisionEnhanced career models and opportunity to specialize on highly demanding clients

Increased our organizational focus

Strengthened and focused our advisory & sales capabilitiesRealigned organizational set-up around target client segments

Enhanced delivery of superior value to our clients

Superior value proposition to Affluent and HNWI clients with maximized competenceSharpened value proposition for premium Private Clients, leveraging Affluent clients set-up (premium Private Clients & Affluent clients with very similar needs)

Coverage until July '09 Key elements of realignment

WM

CRB –

Private Clients part

UHNWI

HNWI

Affluent

Coverage as of Aug '09

WM

UHNWI

HNWI

Affluent(incl. Private

Clients)

Private Clients

AuM < 250 k

Note: AuM threshold in CHF

Switzerland


Unique client value proposition

Comprehensive advice

Needs-based advice around asset allocation and ALM

Globally consistent, award-winning Advisory Process

Integrated bank

Best-in-class capabilities around the globe

Seamless collaboration for the benefit of the client

Global reach

Presence in all major countries

Comprehensive offerings and booking capabilities in all regions

Needs-based solutions

Customized investment and financing strategies

Managed open architecture

Focused coverage

Along domicile, wealth band, and investment behavior

Expert teams for specific advisory and product needs

WM heritage & focus

A global leader in WM, and WM as core business of the bank

A tradition of long-term partnerships with our clients

Credit Suisse is unique in delivering all elements

Excellent basis to grow business with strong margins

Client Centricity


Favorable competitive perception

Selected awards

Euromoney Private Banking survey 2010–

Best Private Banking Services Overall (globally first time)–

#1 in Switzerland, Singapore, Russia, Indonesia, Guernsey and Western Europe

Elite Report/Fuchsbriefe Report 2010–

Magna cum laude for CS Germany and CS Switzerland–

#1 in all-time best list for CS Germany

Asset Triple A Investment Awards 2009–

Best Private Bank in Asia–

Best Private Bank in Singapore

Euromoney Awards for Excellence 2009–

Best Wealth Management House (first time)

Global Finance 2009–

Best Bank in Switzerland

Client Centricity


Continue to roll out Client Centricity initiatives globallyClient Centricity

Rolled out client value management tools

Integrated Client Centricity into scorecards (client satisfaction, portfolio quality)

Econ.profit

Advisory

approach

Client

profitability

management

Segment-

specific client

coverage

& value

propositions

Further enhanced advisory concepts (investment risk advisory, portfolio structuring models)

Implemented effective advisory and sales support processes around the globe

Further developed coverage models (Affluents, entrepreneurs, UHNWI)

Launched segment-specific product innovations (e.g., new mandates, exclusive UHNWI investments)

Revenue

Profitable

Clie

nt 1

Clie

nt 2

Clie

nt 3

Economic profit

Source of wealth Behav

ior ty

pe

Life

- cycl

e ph

ase

Source of wealth Behav

iortyp

eLife

cycl

e ph

ase


Segment-specific client coverage & value proposition: Example UHNWIWMC AuM by segment YE 2009

(Total: CHF 803 bn)

HNWI

UHNWIAffluent

Client Centricity

Comprehensive client value proposition

–

Relationship-oriented "institutional" coverage–

“Private Investment Banking”

needs–

Targeted investment ideas–

State-of-the-art execution platform–

"Connectivity" for business and passions

Focused coverage and service model

–

Dedicated organizations in all regions–

Network of UHNWI solution specialists–

Dedicated trading desks–

Premium mid-

and back-office support

Key elements

of UHNWI approach

55%

29%16%

Note: UHNWI: total wealth > CHF 250 mn or AuM > CHF 50 mn; HNWI:

AuM > CHF 1 mn


1'156

1'469

2006 2009

Strong value creation through integrated bank model

Revenue contribution from PB to IB

and AM

+27%

196

737

2006 2009

... of which integrated solution revenues

+276%

(in CHF mn) (in CHF mn)

Underlying deals: 225 394

Integrating the banking businesses


Continued hiring progress of senior talent

# WMC RMs hired, gross

1) Senior management title level

Share of senior WMC

RMs hired1)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Best people

2007 20092008

41%

62%51%

Ø

NNA in first 6 months of tenure

has tripled since 2007

358

637674

2007 2008 2009


Confident of sustaining high margins medium-term

131 131 131 121

14 149

16

2007 2008 2009 1Q2010

WMC

IB/AM

Total

Productivity and financial performance

147 130

WMC margin including revenue

contribution to IB and AM

(in bp)

Key levers going forward

145

Further enrich solution and service offerings on all local platforms

Increase client wallet share with new client base

Fully leverage UHNWI client relationships through the integrated bank

Continue to drive client-centric product innovation

Further develop pricing models reflecting premium client value

Transitionally lower margins due to current market and interest rate environment

145


2007

2008

2009

2022242628303234363840

700 750 800 850 900

AuM to increase with market performance

and continued inflows

Gross margin expected to be transitionally lower,returning to pre-2010 levels medium-term

Estimated marginal pre-tax income margin of

65 to 70% for additional revenues

Resulting in a significant increase of the

reported pre-tax income margin

Scenario: if AuM per RM reach 2007 levels again, this would generate additional pre-tax

income of around CHF 1.5 bn

Operational leverage going forward

Significant operating leverage as asset base increases

Average WMC AuM

(in CHF bn)

1) Pre-tax income excluding captive insurance proceeds in 1Q09, provisions relating to ARS and provisions relating to the close-out of a clients position in 2008

WMC pre-tax income margin1)

(in %)


Russia & CEE: 20-25%/10-15 bn

Aim to outgrow market in all regions

Asia Pacific:15-20%/35-45 bn

US:10-15%/25-30 bn

Latam:10-15%/20-25 bn

Middle East/India:10-15%/15-20 bn

WMC NNA ambition 2H 2009-2012 (NNA growth p.a./cumulated NNA in CHF bn)1)

Switzerland2):4-6%/40-50 bn

W-Europe:5-7%/35-45 bn

1) Based on figures presented at PB Investor Day 2009, adjusted for new segment structure as of 3Q092) Including Affluent business and Clariden

Leu


Aspiration and targets

Our medium-term targets

We want to become the most admired

bank for Wealth

Management clients globally and for Corporate and Institutional clients in Switzerland, and we want to be industry leader in terms of client satisfaction, employee engagement, profitability, and growth.

Pre-tax income margin

> 40%

Net new assets growth

> 6%

External

Increase client satisfaction

index

Increase employee

engagement score

Internal

Our Aspiration

Appendix 1

CS Private Banking Americas

Anthony DeChellisHead, CS Private Banking Americas

San Francisco, June 24, 2010


Private Banking Americas: Overview

Los Angeles

Miami Nassau

San FranciscoDallas

Chicago Boston

AtlantaNew York

CaracasBogotá

Lima

Santiago Buenos AiresMontevideo

São Paulo

Panama

Philadelphia

Northbrook

Houston

Greenwich

Palm BeachIrvine

Mexico

Market environment

USA–

Client flight to quality and stability–

Consolidation in Wealth Management industry–

Recent equity market volatilityLatAm–

Continued growth in international business–

Global competitors distracted–

Wealth creation both through commodities and more diversified economies

CS position (YE 2009)

550 Relationship ManagersAuM of CHF 130 bn6 booking centers25 locations

Other location

Booking center

Zurich/Geneva/

Lugano


Key financials Americas

3.8

10.1

0.32.2

2.0

1.8

3.7

0.9

5.8

11.0

2.1

5.9

1H08 2H08 1H09 2H09

NNA (CHF bn)

59 62 66

26 29 33 38

64

90 88 95104

1H08 2H08 1H09 2H09

Gross margin Americas (bp)

Recurring

Transaction-based

190 225 220 272

333 310360

277

523 502 530632

1H08 2H08 1H09 2H09

Revenues (CHF mn)

USLatAm

AuM (CHF bn)

58 57 62 67

55 55 6346

113 103117

130

1H08 2H08 1H09 2H09

+11%

USLatAm

USLatAm


World Class Client Experience

Strategic Pillar Key accomplishments

People

Increased RMs from 444 to 550 since 2006 with top competitive hiresStrengthened front line and functional managementIntroduced training and development programs

Total Wealth

Management

Platform

Expanded Americas platforms to meet UHNW needsBroadened our offerings and diversified our revenuesExpanded US booked LatAm business and improved our offeringRolled out lending and deposits

One Bank

Increased collaboration revenues with IB and AM by 98% since 2006Established Fixed Income Middle Markets and Solutions Partners teamsIntroduced dedicated UHNW function

BrandRaised brand awareness through targeted marketing effort (e.g., conferences and programs to demonstrate thought leadership)

Private Banking Americas: Key accomplishments


Private Banking Americas: Priorities by business

Significantly grow business and profits through international (USA, Switzerland, Bahamas) and domestic (Brazil, Mexico) offerings with special focus on newly created entrepreneurial wealth

Substantially outgrow the market by completing transition to comprehensive wealth management for U/HNW clients while earning substantial profits for Credit Suisse

PB LatAm

PB USA

10-15% NNA growth p.a. in medium termCHF 25-30 bn in cumulative NNA by end of 2012

10-15% NNA growth p.a. in medium termCHF 20-25 bn in cumulative NNA by end of 2012

Strategic priority Growth ambition


PB LatAm International: Continue profitable growth

Status

Way

Forward

Double-digit NNA growth and profitability improvement out of multi-booking center platform

International booking: an important value proposition for LatAm U/HNW clients, especially US (largest destination of LatAm wealth)–

Multi-currency diversification

–

Access to global financial markets–

Jurisdictional stability of booking centers

Asset inflows of CHF 3.1 bn in 2009 to our US-, Swiss- and Bahamas-based booking centers; resilient margin levelsUS growth underpinned by NY office opening and hiring of 11 RMsIndustry-leading cross-border framework

Continuation of top talent recruitingDevelopment/enhancement of market specific offeringsFurther leverage of US platform out of Miami and New YorkU/HNW clients: IB leverage for selected client business and broader entrepreneur introductions


PB LatAm Domestic: Build up with solid progress

IB as the local market leaderAcquisition of Hedging-Griffo majority interest by CS in 2007Well integrated franchise, deal implementation as plannedCHF 15.6 bn AuM and CHF 1.2 bn NNA in 2009, stable high profitability level throughout crisis

IB with local presence since 2002PB platform established on back of IB infrastructure in 2008Office opened in 1H09Very good progress on client acquisition

Status

Way

forward

Brazil Mexico

Transformation into comprehensive WM playerOne Bank collaboration with IB Diversification of revenue base

Hiring of further top-notch RMs Cross-leveraging IB and PB client franchisePlatform/product enhancements

Dedicated to building leading franchises in the two largest markets in the region


PB USA: Become a leader in Wealth Management for U/HNW

PB USA positioning and strategy

Continuing war for top RM talent

US wealth management trends

Increasing investor sophistication and demand beyond brokerage

Rise in client expectations re. customization, service and value

Growing complexity of needs and solutions for U/HNW

Consolidation creating mega-institutions covering all segments

People: An employer of choice basedon brand and U/HNW orientation

Platform: A comprehensive WealthManagement business model

Client Experience: Consistent valuecreation and high-touch service

One Bank: Leverage global PBnetwork and integrated Bank

Brand: Premium positioning in U/HNW

segment, history and stability


People: Committed to attracting, developing and retaining the best people in the US Wealth Management industry

Credit Suisse brand, U/HNW focus and integrated bank model highly attractiveRecruiting top RMs from across the industryBuilding industry-leading training and developmentFurther expanding specialist set-upStrengthened branch/product management

0.8

2.21.6

2007 2008 2009

Average T121)

of new RMs by hire year

(USD mn)

New RMs 42 127 44

1) “Trailing 12”

–

revenues of new hire RM during last twelve months with previous

employer, excluding MBA associate program participants


23

31

47 49 63 71

56

26

2006 2007 2008 2009

Platform: Building a full Wealth Management platform for U/HNW clients

Continue to grow gross margins significantly through development of an industry-leading platform

Gross margin PB USA (bp)

Equities/Eq

Derivatives

Fixed Income/ FI Derivatives

Managed Accts/Mutual

Funds

Investment Strategy & Advisory

Platform development since 2006

New addition to platformExpanded offerings/significant enhancementsExisting offerings/limited enhancements

Structured Products

Family Wealth Management

Alternative Investments

Corporate Executive Services

Lending Deposits Foreign Exchange

Bespoke One Bank SolutionsWM

IB/AM

Total

102119

7570


U/HNW individualsFamily officesCorporate executivesEntrepreneursMid-sized institutions

Solution Partners Alternative Investments Corporate Executive ServicesFixed Income Middle MarketsM&A advisory and underwriting

One Bank: PB USA uniquely positioned to benefit from integrated model

Integrated bank model with very strong results to dateContribution to IB/AM equal to 63% of PB USA revenues over last 24 months (to YE 2009) PB USA profitability on a bank level in 2008 after all growth investments1)

PB USA clients One Bank offerings

1)

Applying marginal cost-income ratio to revenues generated for IB and AM; excluding losses related to Auction Rate Securities


A comprehensive wealth management platform (advisory, banking and brokerage) focused on U/HNW clientsIndustry-leading client experience and serviceAn unparalleled reputation for integrity and excellenceNNA growth at twice the market rate

700 best-in-class RMs USD 2 bn in annual revenues, including contributions to other divisionsSubstantial profits generated for Private Banking and Credit Suisse

A leader in US Wealth Management

Long-term ambition

Aspiration for PB USA


Appendix 2: Collaboration revenue concepts and revenues

Revenue generation for other division

1) Revenues from standardized collaboration on investment funds,

discretionary mandates, structured products, execution and trading flows, and integrated solution revenues; collaboration margin includes PB revenue contribution net of a CHF 244 mn refund from IB booked in PB (no double counts)

2) Revenues from one-off transactions

Total collaboration revenues of 5'198

FY09, in CHF mn

A

PB related collaboration revenues of 4'792B

PB revenue contribution to other divisions of 1'4691)C

Integrated solution revenues of 7372)D

Investment

Banking

Private

Banking

Asset

Manage-

ment


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Credit Suisse European Financials West Coast Conference CS ... · Significant investments in international expansion. International growth Strong international presence – Added