Form 20-F
|
Form 40-F
|
Yes
|
No
|
CREDIT SUISSE GROUP AG
|
||
Paradeplatz 8
P.O. Box
CH-8070 Zurich
Switzerland
|
Telephone +41 844 33 88 44
Fax +41 44 333 88 77
media.relations@credit-suisse.com
|
Media Release
|
·
|
Underlying* results: Core pre-tax income of CHF 2,032 million, net income attributable to shareholders of CHF 1,462 million and return on equity of 16%
|
·
|
Reported results: Core pre-tax income of CHF 1,822 million, net income attributable to shareholders of CHF 1,303 million and return on equity of 14%
|
·
|
Solid profitability in Private Banking & Wealth Management with pre-tax income of CHF 881 million compared to CHF 951 million in 1Q12; strong net new assets of CHF 12.0 billion; revenues reflect improved transaction activity, offset by reduced business disposal gains and lower net interest income
|
·
|
Strong returns in Investment Banking with pre-tax income of CHF 1,300 million compared to CHF 907 million in 1Q12, reflecting stable revenue levels, sustained market share, a reduced cost base and lower capital usage, resulting in a return on Basel III allocated capital of 23%
|
·
|
1Q13 Look-through Swiss Core Capital ratio of 9.6%, and 9.8% on a pro forma basis, assuming completion of remaining capital measures; ratios include pro-rata accrual for resumed cash dividend payments
|
·
|
On track to exceed end-2018 requirement of 10% during the middle of 2013
|
·
|
Achieved expense savings of CHF 2.5 billion, excluding certain significant items; on track to reach cost run-rate reduction target of CHF 4.4 billion by end-2015 versus adjusted* annualized 1H11 run-rate
|
Media Release
|
|
April 24, 2013
Page 2/13
|
Media Release
|
|
April 24, 2013
Page 3/13
|
Financial Highlights
|
|||
in CHF million (unless otherwise stated)
|
1Q13
|
4Q12
|
1Q12
|
Reported income before taxes (Core Results)
|
1,822
|
369
|
40
|
Underlying* income before taxes (Core Results)
|
2,032
|
1,173
|
1,484
|
Reported net income attributable to shareholders
|
1,303
|
263
|
44
|
Underlying* net income attributable to shareholders
|
1,462
|
816
|
1,055
|
Reported diluted earnings per share (CHF)
|
0.76
|
0.09
|
0.03
|
Return on equity attributable to shareholders (annualized)
|
14.2%
|
2.9%
|
0.5%
|
Underlying* return on equity attributable to shareholders (annualized)
|
15.9%
|
8.7%
|
12.4%
|
Basel III CET 1 ratio (end of period)
|
14.6%
|
14.2%
|
-
|
Swiss leverage ratio (Basel III)
|
3.8%
|
-
|
-
|
Total book value per share (CHF)
|
28.83
|
27.44
|
27.43
|
Tangible book value per share (CHF)
|
22.09
|
20.77
|
20.41
|
·
|
Net revenues were 5% lower compared to 1Q12, primarily driven by the partial sale of an investment in Aberdeen Asset Management (Aberdeen) in 1Q12, and lower net interest income, partially offset by slightly higher recurring commissions and fees. Transaction- and performance-based revenues were stable compared to 1Q12.
|
o
|
Wealth Management Clients with 1Q13 pre-tax income of CHF 511 million, with stable net revenues of CHF 2,250 million compared to 1Q12, reflecting higher recurring commissions and fees and other revenues, which offset the adverse impact of the ongoing low interest rate environment.
|
o
|
Corporate & Institutional Clients with 1Q13 pre-tax income of CHF 250 million and net revenues of CHF 520 million, which decreased slightly compared to 1Q12, driven by lower net interest income due to the ongoing low interest rate environment and lower transaction- and performance-based revenues from lower trading and sales income.
|
o
|
Asset Management with 1Q13 pre-tax income of CHF 120 million and net revenues of CHF 533 million, down significantly from 1Q12, reflecting gains in 1Q12 from the partial sale of an investment in Aberdeen.
|
·
|
Net new assets across the Group of CHF 12.0 billion in 1Q13, including strong net new assets of CHF 4.4 billion from the collaboration between our businesses.
|
o
|
Wealth Management Clients contributed solid net new assets of CHF 5.5 billion, with continued inflows from emerging markets and from the ultra-high-net-worth individual (UHNWI) client segment, partially offset by continued outflows in Western Europe.
|
o
|
Corporate & Institutional Clients contributed net new assets of CHF 4.5 billion.
|
o
|
Asset Management contributed net new assets of CHF 6.4 billion, with inflows mainly in index strategies, multi-asset class solutions and credit products, partially offset by outflows of CHF 2.1 billion from businesses the bank decided to exit.
|
·
|
Total operating expenses of CHF 2,394 million in 1Q13, 4% lower compared to 1Q12, driven by lower compensation and benefits, reflecting the non-recurrence of the CHF 120 million of PAF2 award expense booked in 1Q12 as well as lower salary expenses mainly due to lower headcount.
|
Media Release
|
|
April 24, 2013
Page 4/13
|
·
|
Net revenues were stable compared to 1Q12, reflecting higher revenues in fixed income sales and trading and underwriting and advisory, offset by lower equity sales and trading results.
|
o
|
Fixed income sales and trading revenues of CHF 1,987 million were up 3% compared to 1Q12, reflecting resilient performance in our market-leading franchises, including global credit products, securitized products and emerging markets. In addition, we incurred a gain on businesses that the bank is exiting of CHF 4 million compared to a loss of 261 million in 1Q12.
|
o
|
Equity sales and trading revenues of CHF 1,297 million were down 5% from 1Q12 due to weaker performance in fund-linked products and convertibles, reflecting less favorable trading conditions. Cash equities and prime services franchises generated strong results.
|
o
|
Underwriting and advisory revenues of CHF 763 million increased 3% from 1Q12, driven by higher revenues in both debt and equity underwriting, partially offset by significantly lower mergers and acquisitions (M&A) fees.
|
·
|
Total operating expenses of CHF 2,651 million declined 13% from 1Q12, driven by lower compensation and benefits, primarily due to lower deferred compensation expense as 1Q12 included a CHF 411 million expense related to the PAF2 awards. The decline was partially offset by higher total other operating expenses mainly due to higher litigation provisions.
|
·
|
Return on Basel III allocated capital for Investment Banking was 23% in 1Q13, compared to 13% in 1Q12.
|
·
|
Basel III risk-weighted assets as of the end of 1Q13 were USD 182 billion; Investment Banking is on track to reach year-end 2013 target of USD 175 billion.
|
Media Release
|
|
April 24, 2013
Page 5/13
|
in CHF million
|
1Q13
|
4Q12
|
1Q12
|
Change in %
vs. 4Q12
|
Change in %
vs. 1Q12
|
|
Private Banking & Wealth Management
|
Net revenues
|
3,303
|
3,334
|
3,485
|
(1)
|
(5)
|
Provision for credit losses
|
28
|
68
|
39
|
(59)
|
(28)
|
|
Total operating expenses
|
2,394
|
2,355
|
2,495
|
2
|
(4)
|
|
Income before taxes
|
881
|
911
|
951
|
(3)
|
(7)
|
|
Investment Banking
|
Net revenues
|
3,945
|
2,664
|
3,959
|
48
|
0
|
Provision for credit losses
|
(6)
|
2
|
(5)
|
-
|
20
|
|
Total operating expenses
|
2,651
|
2,364
|
3,057
|
12
|
(13)
|
|
Income before taxes
|
1,300
|
298
|
907
|
336
|
43
|
Media Release
|
|
April 24, 2013
Page 6/13
|
Media Release
|
|
April 24, 2013
Page 7/13
|
Media Release
|
|
April 24, 2013
Page 8/13
|
–
|
our plans, objectives or goals;
|
–
|
our future economic performance or prospects;
|
–
|
the potential effect on our future performance of certain contingencies; and
|
–
|
assumptions underlying any such statements.
|
–
|
the ability to maintain sufficient liquidity and access capital markets;
|
–
|
market and interest rate fluctuations and interest rate levels;
|
–
|
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 continued slow economic recovery or downturn in the US or other developed countries in 2013 and beyond;
|
–
|
the direct and indirect impacts of continuing deterioration or slow recovery in residential and commercial real estate markets;
|
–
|
adverse rating actions by credit rating agencies in respect of sovereign issuers, structured credit products or other credit-related exposures;
|
–
|
the ability to achieve our strategic objectives, including improved performance, reduced risks, lower costs, and more efficient use of capital;
|
–
|
the ability of counterparties to meet their obligations to us;
|
–
|
the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations;
|
–
|
political and social developments, including war, civil unrest or terrorist activity;
|
–
|
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;
|
–
|
actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations;
|
–
|
the effects of changes in laws, regulations or accounting policies or practices;
|
–
|
competition 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;
|
–
|
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;
|
–
|
the adverse resolution of litigation and other contingencies;
|
–
|
the ability to achieve our cost efficiency goals and cost targets; and
|
–
|
our success at managing the risks involved in the foregoing.
|
Media Release
|
|
April 24, 2013
Page 9/13
|
Date
|
Wednesday, April 24, 2013
|
Time
|
09:00 Zurich / 08:00 London / 03:00 New York
|
Speakers
|
Brady W. Dougan, Chief Executive Officer
|
David Mathers, Chief Financial Officer
|
|
The presentations will be held in English.
|
|
Audio webcast
|
www.credit-suisse.com/results
|
Telephone
|
Switzerland: +41 44 580 40 01
|
Europe: +44 1452 565 510
|
|
US: +1 866 389 9771
|
|
Reference: Credit Suisse Group quarterly results
|
|
Q&A session
|
Following the presentations, you will have the opportunity to ask questions via the telephone conference.
|
Playback
|
Replay available approximately two hours after the event by visiting
|
www.credit-suisse.com/results or by dialing:
|
|
Switzerland: +41 44 580 34 56
|
|
Europe: +44 1452 550 000
|
|
US: +1 866 247 4222
|
|
Conference ID: 33812027#
|
Media Release
|
|
April 24, 2013
Page
10/13
|
in | 1Q13 | 4Q12 | 1Q12 | 2012 | |||||
Reconciliation (CHF million) | |||||||||
Net revenues - as reported | 7,117 | 5,721 | 5,878 | 23,606 | |||||
Fair value impact from movements in own credit spreads | 68 | 372 | 1,554 | 2,912 | |||||
Realignment costs | – | – | – | 15 | |||||
Gain on sale of stake in Aberdeen Asset Management | – | – | (178) | (384) | |||||
Gain on sale of a non-core business from the integration of Clariden Leu | – | – | – | (41) | |||||
Impairment of Asset Management Finance LLC and other losses | – | 30 | – | 68 | |||||
Gain on sale of real estate | – | (151) | – | (533) | |||||
Gain on sale of Wincasa | – | (45) | – | (45) | |||||
Losses/(gains) on planned sale of certain private equity investments | (13) | 82 | – | 82 | |||||
Loss on sale of JO Hambro | 46 | – | – | – | |||||
Net revenues - underlying | 7,218 | 6,009 | 7,254 | 25,680 | |||||
Provisions for credit losses | 22 | 70 | 34 | 170 | |||||
Total operating expenses - as reported | 5,273 | 5,282 | 5,804 | 21,557 | |||||
Fair value impact from movements in own credit spreads | (12) | (4) | – | (27) | |||||
Realignment costs | (92) | (285) | (68) | (665) | |||||
Certain litigation provisions | – | (227) | 1 | – | (363) | 2 | |||
Legal fees relating to planned sale of certain private equity investments | (5) | – | – | – | |||||
Total operating expenses - underlying | 5,164 | 4,766 | 5,736 | 20,502 | |||||
Income before taxes - underlying | 2,032 | 1,173 | 1,484 | 5,008 | |||||
Income tax expense/(benefit) - as reported | 510 | 100 | (16) | 496 | |||||
Fair value impact from movements in own credit spreads | 13 | 72 | 444 | 678 | |||||
Realignment costs | 29 | 95 | 21 | 203 | |||||
Gain on sale of stake in Aberdeen Asset Management | – | – | (32) | (58) | |||||
Gain on sale of a non-core business from the integration of Clariden Leu | – | – | – | (4) | |||||
Impairment of Asset Management Finance LLC and other losses | – | 12 | – | 27 | |||||
Gain on sale of real estate | – | (31) | – | (88) | |||||
Losses/(gains) on planned sale of certain private equity investments | (6) | 10 | – | 10 | |||||
Certain litigation provisions | – | 93 | 1 | – | 133 | 2 | |||
Loss on sale of JO Hambro | 13 | – | – | – | |||||
Legal fees relating to planned sale of certain private equity investments | 2 | – | – | – | |||||
Income tax expense/(benefit) - underlying | 561 | 351 | 417 | 1,397 | |||||
Net income attributable to noncontrolling interests | 9 | 6 | 12 | 34 | |||||
Net income attributable to shareholders - underlying | 1,462 | 816 | 1,055 | 3,577 | |||||
Statement of operations metrics - underlying (%) | |||||||||
Return on equity attributable to shareholders - underlying | 15.9 | 8.7 | 12.4 | 10.0 | |||||
Cost/income ratio - underlying | 71.5 | 79.3 | 79.1 | 79.8 | |||||
1
Consists of litigation provisions related to National Century Financial Enterprises, Inc. (NCFE).
|
|||||||||
2
Includes CHF 136 million (CHF 96 million after tax) related to significant Investment Banking litigation provisions in 3Q12 and CHF 227 million (CHF 134 million after tax) NCFE-related litigation provisions in 4Q12.
|
Media Release
|
|
April 24, 2013
Page
11/13
|
in | 1Q13 | 4Q12 | 1Q12 | |||||
Consolidated statements of operations (CHF million) | ||||||||
Interest and dividend income | 4,824 | 4,843 | 5,295 | |||||
Interest expense | (3,017) | (2,903) | (3,411) | |||||
Net interest income | 1,807 | 1,940 | 1,884 | |||||
Commissions and fees | 3,346 | 3,547 | 3,172 | |||||
Trading revenues | 1,815 | (147) | 189 | |||||
Other revenues | 220 | 460 | 802 | |||||
Net revenues | 7,188 | 5,800 | 6,047 | |||||
Provision for credit losses | 22 | 70 | 34 | |||||
Compensation and benefits | 3,024 | 2,720 | 3,711 | |||||
General and administrative expenses | 1,754 | 2,122 | 1,653 | |||||
Commission expenses | 497 | 456 | 451 | |||||
Total other operating expenses | 2,251 | 2,578 | 2,104 | |||||
Total operating expenses | 5,275 | 5,298 | 5,815 | |||||
Income before taxes | 1,891 | 432 | 198 | |||||
Income tax expense/(benefit) | 510 | 100 | (16) | |||||
Net income | 1,381 | 332 | 214 | |||||
Net income attributable to noncontrolling interests | 78 | 69 | 170 | |||||
Net income attributable to shareholders | 1,303 | 263 | 44 | |||||
Earnings per share (CHF) | ||||||||
Basic earnings per share | 0.78 | 0.09 | 0.03 | |||||
Diluted earnings per share | 0.76 | 0.09 | 0.03 |
Media Release
|
|
April 24, 2013
Page
12/13
|
end of | 1Q13 | 4Q12 | 1Q12 | ||||
Assets (CHF million) | |||||||
Cash and due from banks | 57,242 | 61,763 | 89,449 | ||||
Interest-bearing deposits with banks | 1,781 | 1,945 | 2,570 | ||||
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions | 180,513 | 183,455 | 192,068 | ||||
Securities received as collateral, at fair value | 33,199 | 30,045 | 33,761 | ||||
of which encumbered | 22,093 | 17,767 | 21,747 | ||||
Trading assets, at fair value | 264,201 | 256,399 | 300,597 | ||||
of which encumbered | 75,138 | 70,948 | 78,605 | ||||
Investment securities | 3,428 | 3,498 | 5,604 | ||||
Other investments | 12,084 | 12,022 | 12,294 | ||||
Net loans | 248,995 | 242,223 | 231,696 | ||||
of which encumbered | 552 | 535 | 552 | ||||
allowance for loan losses | (916) | (922) | (908) | ||||
Premises and equipment | 5,593 | 5,618 | 6,878 | ||||
Goodwill | 8,584 | 8,389 | 8,333 | ||||
Other intangible assets | 256 | 243 | 260 | ||||
Brokerage receivables | 58,538 | 45,768 | 42,801 | ||||
Other assets | 72,204 | 72,912 | 73,709 | ||||
of which encumbered | 722 | 1,495 | 2,302 | ||||
Total assets | 946,618 | 924,280 | 1,000,020 |
Media Release
|
|
April 24, 2013
Page
13/13
|
end of | 1Q13 | 4Q12 | 1Q12 | ||||
Liabilities and equity (CHF million) | |||||||
Due to banks | 35,033 | 31,014 | 39,035 | ||||
Customer deposits | 316,681 | 308,312 | 304,943 | ||||
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions | 127,182 | 132,721 | 167,457 | ||||
Obligation to return securities received as collateral, at fair value | 33,199 | 30,045 | 33,761 | ||||
Trading liabilities, at fair value | 91,490 | 90,816 | 114,500 | ||||
Short-term borrowings | 24,657 | 18,641 | 16,331 | ||||
Long-term debt | 143,094 | 148,134 | 155,631 | ||||
Brokerage payables | 73,466 | 64,676 | 67,569 | ||||
Other liabilities | 56,870 | 57,637 | 59,929 | ||||
Total liabilities | 901,672 | 881,996 | 959,156 | ||||
Common shares | 54 | 53 | 49 | ||||
Additional paid-in capital | 23,808 | 23,636 | 22,262 | ||||
Retained earnings | 29,474 | 28,171 | 27,097 | ||||
Treasury shares, at cost | (446) | (459) | 0 | ||||
Accumulated other comprehensive income/(loss) | (15,065) | (15,903) | (15,823) | ||||
Total shareholders' equity | 37,825 | 35,498 | 33,585 | ||||
Noncontrolling interests | 7,121 | 6,786 | 7,279 | ||||
Total equity | 44,946 | 42,284 | 40,864 | ||||
Total liabilities and equity | 946,618 | 924,280 | 1,000,020 |
end of | 1Q13 | 4Q12 | 1Q12 | ||||
Additional share information | |||||||
Par value (CHF) | 0.04 | 0.04 | 0.04 | ||||
Authorized shares 1 | 2,118,134,039 | 2,118,134,039 | 1,868,134,039 | ||||
Common shares issued | 1,339,652,645 | 1,320,829,922 | 1,224,513,920 | ||||
Treasury shares | (27,495,313) | (27,036,831) | 0 | ||||
Shares outstanding | 1,312,157,332 | 1,293,793,091 | 1,224,513,920 | ||||
1
Includes issued shares and unissued shares (conditional, conversion and authorized capital).
|
CREDIT SUISSE GROUP AG and CREDIT SUISSE AG
|
||
(Registrant)
|
||
By: | /s/ Brady W. Dougan Brady W. Dougan Chief Executive Officer Credit Suisse Group AG and Credit Suisse AG |
|
/s/ David R. Mathers
David R. Mathers Chief Financial Officer |
||
Date: April 24, 2013 | Credit Suisse Group AG and Credit Suisse AG |