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November 2017
About Credit Suisse – A brief presentation
Disclaimer
November 2017 2
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, 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, 2016 and in the “Cautionary statement regarding forward-looking information" in our 3Q17 Financial Report 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 law.
In particular, the terms “Illustrative”, “Ambition”, “Outlook” and “Goal” are not intended to be viewed as targets or projections, nor are they considered to be Key Performance
Indicators. All such illustrations, ambitions and goals are subject to a large number of inherent risks, assumptions and uncertainties, many of which are completely outside of our
control. Accordingly, this information should not be relied on for any purpose. We do not intend to update these illustrations, ambitions or goals.
We may not achieve the benefits of our strategic initiatives
We may not achieve all of the expected benefits of our strategic initiatives. Factors beyond our control, including but not limited to the market and economic conditions, changes in
laws, rules or regulations and other challenges discussed in our public filings, could limit our ability to achieve some or all of the expected benefits of these initiatives.
Estimates and assumptions
In preparing this presentation, management has made estimates and assumptions that affect the numbers presented. Actual results may differ. Annualized numbers do not take
account of 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.
Statement regarding non-GAAP financial measures
This presentation also contains non-GAAP financial measures, including adjusted results. 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.
Statement regarding capital, liquidity and leverage
As of January 1, 2013, Basel III was implemented in Switzerland along with the Swiss “Too Big to Fail” legislation and regulations thereunder (in each case, subject to certain phase-in
periods). As of January 1, 2015, the Bank for International Settlements (BIS) leverage ratio framework, as issued by the Basel Committee on Banking Supervision (BCBS), was
implemented in Switzerland by FINMA. Our related disclosures are in accordance with our interpretation of such requirements, including relevant assumptions. Changes in the
interpretation of these requirements in Switzerland or in any of our assumptions or estimates could result in different numbers from those shown in this presentation. Capital and ratio
numbers for periods prior to 2013 are based on estimates, which are calculated as if the Basel III framework had been in place in Switzerland during such periods.
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.
Beginning in 2015, the Swiss leverage ratio is calculated as Swiss total capital, divided by period-end leverage exposure. The look-through BIS tier 1 leverage ratio and CET1
leverage ratio are calculated as look-through BIS tier 1 capital and CET1 capital, respectively, divided by end-period leverage exposure.
Credit Suisse overview
Picture: Credit Suisse head office at Paradeplatz in Zurich, Switzerland
Founded 1856
46,720 employees from over 150 nations
in about 50 countries
Structure International
Wealth
Management
Swiss
Universal
Bank
Asia
Pacific
Investment
Banking
&
Capital
Markets
Global
Markets
Three regionally focused divisions, two divisions specializing in investment banking and one for businesses and positions that do not fit our strategy and which we will wind down over time
We aim to be a leading wealth manager with strong investment banking capabilities
Strengths
Strategic
Resolution
Unit
Strategy
Leading global wealth manager
Specialist investment banking capabilities
Strong presence in home market of Switzerland
Well positioned to capture growth in emerging markets
Position ourselves as the “Bank for Entrepreneurs” by leveraging our strengths in wealth management and investment banking that we believe will provide us with key competitive advantages to succeed in these markets.
Seek to follow a balanced approach to wealth management aiming to capitalize on both the large pool of wealth within mature markets as well as the significant growth in wealth in Asia Pacific and other emerging markets.
Expand our position in Switzerland with a specific focus on becoming the “Bank for Entrepreneurs” and plan to further expand our strong position with Swiss private, corporate and institutional clients as well as take advantage of opportunities arising from consolidation.
November 2017 3
Credit Suisse Group: key metrics
Note: Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in the Appendix 1 Relates to our senior unsecured debt and are subject to change without notice. Latest rating action on December 13, 2016 2 Excluding Corporate Center and SRU
9M17 2016 2015 2014
Net revenues 15.7 20.3 23.8 26.2
Pre-tax income/(loss) 1.7 (2.3) (2.4) 3.6
Adjusted pre-tax income 2.2 0.6 2.1 5.0
Net income/(loss) attributable to shareholders 1.1 (2.7) (2.9) 1.9
Return on equity attributable to shareholders 4% (6)% (7)% 4%
Net new assets 34.7 26.8 46.9 27.9
Assets under management 1,345 1,251 1,214 1,369
Total assets 789 820 821 921
Net loans 276 276 273 273
Financial
Performance In CHF bn
3Q17 2016 2015 2014
CET1 ratio 13.2% 11.5% 11.4% 10.1%
CET1 leverage ratio 3.8% 3.2% 3.3% 2.5%
Tier 1 leverage ratio 5.2% 4.4% 4.5% 3.5%
Short- Long-
term term Outlook
Moody’s P-1 A1
S&P A-1 A
Fitch Ratings F1 A
Stable
Stable
Stable
Capital ratios Basel 3 look-through
A balanced business portfolio
26%
19%
42%
6%
7%
2016 adjusted pre-tax
income2
46,720
employees as of 3Q17
22%
15%
27%
7%
25%
3,570
relationship
managers as of 3Q17
1,850
590
1,130
Swiss Universal Bank International Wealth Management Asia Pacific
Global Markets Investment Banking & Capital Markets
Senior Credit Ratings1
Credit Suisse AG (the Bank)
o/w 1,300 PC
o/w 550 C&IC CC & SRU
4%
November 2017 4
Swiss Universal Bank – Strengthen position in our domestic market
The Swiss Universal Bank division offers comprehensive advice and a wide range of financial solutions to private, corporate and institutional clients primarily domiciled in our home market Switzerland, which offers attractive growth opportunities and where we can build on a strong market position across our key businesses. Our Private Clients business has a leading franchise in our Swiss home market and serves ultra-high-net-worth individuals, high-net-worth individuals, affluent and retail clients. Our Corporate & Institutional Clients business serves large corporate clients, small and medium-sized enterprises, institutional clients, external asset managers and financial institutions.
Key
Priorities
Value proposition
Seek to consistently deliver the best value proposition for our client segments: private & wealth management clients, premium clients, corporate clients and institutional clients.
Business model
Complement simple, low-risk business model (focus on Swiss-domiciled clients) with international, best-in-class investment banking and asset management capabilities
Brand
Be recognized as THE Bank for Entrepreneurs in Switzerland
Efficiency & Returns
Reduce management layers to drive faster decisions, optimize processes and eliminate duplication
Produce a consistently strong return on regulatory capital, in excess of our cost of capital
Financial
Performance
2014 2015 2016 9M17
5.9 5.7
Net Revenues in CHF bn
41%
59%
44%
56%
2014 2015 2016 9M17
2.0 2.0 1.7
Pre-tax income in CHF bn
48%
52%
58%
42%
12,600
1,850
2014 2015 2016 9M17
9.3
2.6
13.8
Private Clients Corporate & Institutional Clients
Net New Assets in CHF bn
5.8
Assets under Management
CHF
206 bn
CHF
347 bn
CHF
553 bn
3Q17
Employees
Relationship Managers
All information for or as of end 3Q17, as applicable, unless noted otherwise
November 2017
43%
57%
46%
54%
5
4.1
1.3
(9.0)
53%
47% 56% 44%
International Wealth Management – Relentless focus on clients
The International Wealth Management division through its Private Banking business offers comprehensive advisory services and tailored investment and financing solutions to wealthy private clients and external asset managers in Europe, the Middle East, Africa and Latin America, utilizing comprehensive access to the broad spectrum of Credit Suisse’s global resources and capabilities as well as a wide range of proprietary and third-party products and services. Our Asset Management business offers investment solutions and services globally to a broad range of clients, including pension funds, governments, foundations and endowments, corporations and individuals.
Key
Priorities
Deliver client value
Holistic client coverage Leverage investment and research capabilities Invest in additional resources and broaden lending activities to
address clients’ sophisticated financing needs
Enhance client proximity
Grow sales force Expand “hub and spokes” model
Increase client time
Simplify and de-layer organization to bring decision-making closer to point of advice
Invest in technology and automation to increase client face time
Financial
Performance
2014 2015 2016 9M17
4.9 4.6
Net Revenues in CHF bn
33%
67%
29%
71%
2014 2015 2016 9M17
1.1 1.3
0.7
Pre-tax income in CHF bn
33%
67% 75%
10,110 Employees
1,130 Relationship Managers
2014 2015 2016 9M17
13.8 21.2
23.5
Private Banking Asset Management
Net New Assets in CHF bn
4.7
Assets under Management
CHF
355 bn
CHF
377 bn
CHF
732 bn
3Q17
All information for or as of end 3Q17, as applicable, unless noted otherwise
November 2017
28%
72% 75%
6
3.7 1.0
31.8
72% 78%
28%
Asia Pacific – The Trusted Entrepreneurs’ Bank
In the Asia Pacific division, our wealth management, financing and underwriting and advisory teams work closely together to deliver integrated advisory services and solutions to our target ultra-high-net-worth, entrepreneur, and corporate clients. Our Wealth Management & Connected business combines our activities in wealth management with our financing, underwriting and advisory activities. Our Markets business represents our equities and fixed income trading business in Asia Pacific, which supports our wealth management activities, but also deals extensively with a broader range of institutional clients.
Key
Priorities
Focus on UHNWI
Deliver client critical equities & financing capabilities
Continue to deliver new investment products and services from our investment banking platform
Prudently build out quality credit and equity strategic financing, while remaining mindful of market volatility
Grow broad base of business profitability
Continue to grow existing business franchises where we have deep client relationships and strong, profitable market positions
Grow recurring fee-income base by leveraging integrated, advisory-led model
Adjust business model for new market entry or business acquisition to drive incremental growth
Financial
Performance
2014 2015 2016 9M17
3.3 3.8
Net Revenues in CHF bn
52%
48%
61%
39%
2014 2015 2016 9M17
0.7 0.9
0.4
Pre-tax income in CHF bn
46%
54%
145%
7,050
590
Wealth Management & Connected
Markets
2016 Markets revenues
in CHF bn
3.6
Private Banking1 Assets In CHF bn
2014 2015 2016 9M17
18
151 150
14 18
CHF 1.7 bn
Fixed Income sales and trading 31%
Equity sales and trading 69%
167
Assets under Management Net New Assets
All information for or as of end 3Q17, as applicable, unless noted otherwise 1 APAC PB within WM&C
Employees
Relationship Managers
November 2017
47%
53%
33%
67%
7
2.6 0.6
190
16
65% 103%
35%
Note: Adjusted results are non-GAAP financial measures. †See appendix (notes) All information for or as of end 3Q17, as applicable, unless noted otherwise 1 Other revenues of CHF (236) mn, CHF (207) mn, CHF (216) mn and CHF (160) mn in 2014, 2015, 2016 and 9M17, respectively
Global Markets – Connectivity with the Group
The Global Markets division offers a broad range of financial products and services to client-driven businesses and also supports Credit Suisse’s global wealth management businesses and their clients. Our suite of products and services includes global securities sales, trading and execution, prime brokerage and comprehensive investment research. Our clients include financial institutions, corporations, governments, institutional investors, such as pension funds and hedge funds and private individuals around the world.
Key
Priorities
Maintain strong client franchise and enhance collaboration
across Credit Suisse divisions
Maintain and defend leading market positions across equities and fixed income
Increase collaboration with institutional, corporate and wealth management clients to grow revenues
Enhance product offerings into developed Europe and emerging markets
Increase operating leverage and profitability
Continue ongoing cost-saving initiatives by increasing efficiencies from consolidating solutions platform and eliminating duplication across functions
Ambitions to generate USD 6bn+ revenues with an adjusted cost base of < USD 4.8bn while generating over 10% adjusted return on regulatory capital†
Drive the CS strategy of a global wealth manager with strong
Investment Banking capabilities
Financial
Performance
Net Revenues in CHF bn, excluding “other revenues”1
11,760 Employees
Fixed income sales and trading
Equity sales and trading
Underwriting 61 64 51 58
2014 2015 2016 3Q17
Risk-Weighted Assets in USD bn
377 280 278 291
2014 2015 2016 3Q17
Leverage Exposure in USD bn
2014 2015 2016 9M17
7.7 7.0
48%
37%
48%
39%
5.7
15% 13% 17%
38%
45%
November 2017 8
4.5
18%
30%
52%
Investment Banking & Capital Markets
The Investment Banking & Capital Markets division offers a broad range of investment banking services to corporations, financial institutions, financial sponsors and ultra-high-net-worth individuals and sovereign clients. Our range of products and services includes advisory services related to mergers and acquisitions, divestitures, takeover defense mandates, business restructurings and spin-offs. The division also engages in debt and equity underwriting of public securities offerings and private placements.
Key
Priorities
Optimize client coverage footprint to increase share in M&A and
ECM while maintaining our leading leveraged finance franchise
Targeted plans for investment grade corporates, non-investment grade corporates and financial sponsors
Globally-coordinated EM coverage effort
Grow the UHNWI offering established in 2016
Collaborate across divisions and regions to deliver seamless
solutions to clients
Improve profitability with a mix of revenue growth, increased
operating efficiencies and disciplined capital management
Deliver returns in excess of cost of capital: target 15-20% adjusted return on regulatory capital† by 2018
Financial
Performance
Net Revenues in CHF bn, excluding “other revenues”1
3,260 Employees
Risk-Weighted Assets in USD bn
Leverage Exposure in USD bn
12 16 18 20
2014 2015 2016 3Q17
40 41 45 44
2014 2015 2016 3Q17
Note: Adjusted results are non-GAAP financial measures. †See appendix (notes) All information for or as of end 3Q17, as applicable, unless noted otherwise 1 Other revenues of CHF (33) mn, CHF (146) mn, CHF (123) mn and CHF (44) mn in 2014, 2015, 2016 and 9M17, respectively
2014 2015 2016 9M17
2.1 1.9
29%
48%
39%
42%
2.1
23% 19% 15%
45%
40%
Advisory and other fees
Debt Underwriting
Equity Underwriting
November 2017 9
1.6
17%
48%
35%
Executive Board
Tidjane Thiam
Chief Executive Officer
Corporate Functions
Thomas P.
Gottstein
CEO Swiss Universal Bank
James L. Amine
CEO Investment Banking & Capital Markets
Business divisions
David R. Mathers
Chief Financial Officer
Joachim Oechslin Chief Risk Officer
Brian Chin
CEO Global Markets Iqbal Khan
CEO International Wealth Management
Helman Sitohang
CEO Asia Pacific
Pierre-Olivier Bouée
Chief Operating
Officer
Romeo Cerutti
General Counsel Peter Goerke
Head of Human
Resources, Communications &
Branding
Lara J. Warner
Chief Compliance &
Regulatory Affairs Officer
November 2017 10
Board of Directors
Urs Rohner Chairman,
Chairman of the
Chairman's and
Governance Committee
Chairman’s and Governance Committee Audit Committee Compensation Committee Risk Committee
Iris Bohnet
Seraina (Maag) Macia
Kai S. Nargolwala Chairman of the
Compensation
Committee
Severin Schwan Vice-Chair and
Lead Independent
Director
John Tiner Chairman of the
Audit Committee
Andreas N. Koopmann
Members of the:
Richard E. Thornburgh Vice-Chair and
Chairman of the
Risk Committee
Alexander Gut
Joaquin J. Ribeiro
November 2017 11
Andreas Gottschling
Alexandre Zeller
Corporate Responsibility at Credit Suisse: our responsible approach
to business is a key factor in determining our long-term success
CHF
19,684 mn amount of assets have
been invested according to our
sustainability criteria
89% of our private clients in
Switzerland are satisfied with our services
CHF
159 bn is Credit Suisse’s
volume of outstanding loans in Switzerland
18,554 of our employees around the world
volunteered their time to help charitable
causes
Approximately
1,390 benefited from a
structured educational program
70,600 days of classroom
training were delivered
190,422 hours of desktop video-
conferencing were used, helping to reduce
our CO2 emissions
8,700 hours of training on
environmental management, health
and safety were provided to employees
Responsibility
in Society
Responsibility
in Banking
Responsibility
as an
Employer
Responsibility
for the
Environment
All information for or as of year-end 2016, as applicable, unless otherwise noted
November 2017 12
Credit Suisse with a diverse international shareholder base
1 Source: IPREO 2 Share ownership of at least 3% as per latest available notification to the SIX Swiss Exchange on September 2, 2017 3 This position includes the reportable position of Harris Associates Investment Trust (5.01% shares), as published by SIX on June 28, 2017 4 Through September 30, 2017 5 One American Depositary Share represents one common share
Switzerland
North America
Europe
Other
15%
8%
18%
48% Institutional investors
Private investors
Other investors United Kingdom & Ireland
11% Harris Associates L.P.3 5.2%
Norges Bank 5.1%
Qatar Holding LLC 5.0%
Olayan Group 4.9%
BlackRock, Inc. 4.2%
Share ownership
10%
85%
5%
EURO STOXX Banks index (rebased as of January 1, 2009)
Credit Suisse (CSGN VX)
Shareholder
Base1
As of end 2Q17
Significant
Shareholders2
Share price development
from 2009 through 3Q174
-
20.00
40.00
60.00
80.00
Dec. 2008 Dec. 2009 Dec. 2010 Dec. 2011 Dec. 2012 Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016
Credit Suisse shares are listed on the SIX Swiss Exchange and on the New York Stock Exchange in the form of American Depositary Shares5
In CHF
November 2017 13
Appendix
November 2017 14
SUB in CHF mn IWM in CHF mn APAC in CHF mn
9M17 9M16 2016 2015 2014 9M17 9M16 2016 2015 2014 9M17 9M16 2016 2015 2014
Net revenues reported 4,078 4,360 5,759 5,721 5,912 3,747 3,399 4,698 4,552 4,942 2,619 2,735 3,597 3,839 3,335
Fair value on own debt - - - - - - - - - - - - - - -
Real estate gains - (346) (366) (95) (414) - - (54) - - - - - - -
(Gains)/losses on business sales - - - (23) (24) - - - (11) (77) - - - - -
Net revenues adjusted 4,078 4,014 5,393 5,603 5,474 3,747 3,399 4,644 4,541 4,865 2,619 2,735 3,597 3,839 3,335
Provision for credit losses 60 45 79 138 94 13 14 20 5 12 8 15 26 35 40
Total operating expenses reported 2,686 2,672 3,655 3,908 3,794 2,723 2,595 3,557 3,824 3,670 2,058 2,098 2,846 3,427 2,395
Goodwill impairment - - - - - - - - - - - - - (756) -
Restructuring expenses (61) (63) (60) (42) - (59) (38) (54) (36) - (40) (34) (53) (3) -
Major litigation provisions (42) - (19) (25) - (17) 19 12 (268) (51) - - - (6) -
Total operating expenses adjusted 2,583 2,609 3,576 3,841 3,794 2,647 2,576 3,515 3,520 3,619 2,018 2,064 2,793 2,662 2,395
Pre-tax income/(loss) reported 1,332 1,643 2,025 1,675 2,024 1,011 790 1,121 723 1,260 553 622 725 377 900
Total adjustments 103 (283) (287) (51) (438) 76 19 (12) 293 (26) 40 34 53 765 -
Pre-tax income/(loss) adjusted 1,435 1,360 1,738 1,624 1,586 1,087 809 1,109 1,016 1,234 593 656 778 1,142 900
Adjusted results are non-GAAP financial measures that exclude goodwill impairment and certain other revenues and expenses included in our reported results. Management believes that adjusted results provide a useful presentation of our operating results for purposes of assessing our Group and divisional performance consistently over time, on a basis that excludes items that management does not consider representative of our underlying
performance. Provided below is a reconciliation of our adjusted results to the most directly comparable US GAAP measures.
CS Group in CHF mn SRU in CHF mn Corp. Ctr. in CHF mn
9M17 9M16 2016 2015 2014 9M17 9M16 2016 2015 2014 9M17 9M16 2016 2015 2014
Net revenues reported 15,711 15,142 20,323 23,797 26,242 (735) (1,069) (1,271) 511 1,838 40 87 71 561 680
Fair value on own debt - - - (298) (543) - - - - - - - - (298) (543)
Real estate gains - (346) (424) (95) (414) - - (4) - - - - - - -
(Gains)/losses on business sales (15) 56 58 (34) (101) (38) 4 6 - - 23 52 52 - -
Net revenues adjusted 15,696 14,852 19,957 23,370 25,184 (773) (1,065) (1,269) 511 1,838 63 139 123 263 137
Provision for credit losses 167 177 252 324 186 29 83 111 137 33 3 (1) (1) (1) 1
Total operating expenses reported 13,892 15,028 22,337 25,895 22,429 916 1,712 4,377 3,026 4,912 508 497 759 862 654
Goodwill impairment - - - (3,797) - - - - - - - - - - -
Restructuring expenses (318) (491) (540) (355) - (39) (120) (121) (156) - (12) - (7) - -
Major litigation provisions (238) (306) (2,707) (820) (2,436) (179) (318) (2,693) (290) (2,325) - - - - -
Total operating expenses adjusted 13,336 14,231 19,090 20,923 19,993 698 1,274 1,563 2,580 2,587 496 497 752 862 654
Pre-tax income/(loss) reported 1,652 (63) (2,266) (2,422) 3,627 (1,680) (2,864) (5,759) (2,652) (3,107) (471) (409) (687) (300) 25
Total adjustments 541 507 2,881 4,545 1,378 180 442 2,816 446 2,325 35 52 59 (298) (543)
Pre-tax income/(loss) adjusted 2,193 444 615 2,123 5,005 (1,500) (2,422) (2,943) (2,206) (782) (436) (357) (628) (598) (518)
Reconciliation of adjustment items (1/2)
November 2017 15
Reconciliation of adjustment items (2/2)
Adjusted results are non-GAAP financial measures that exclude goodwill impairment and certain other revenues and expenses included in our reported results. Management believes that adjusted results provide a useful presentation of our operating results for purposes of assessing our Group and divisional performance consistently over time, on a basis that excludes items that management does not consider representative of our underlying
performance. Provided below is a reconciliation of our adjusted results to the most directly comparable US GAAP measures.
16 July 2017
GM in CHF mn IBCM in CHF mn
9M17 9M16 2016 2015 2014 9M17 9M16 2016 2015 2014
Net revenues 4,388 4,232 5,497 6,826 7,426 1,574 1,398 1,972 1,787 2,109
Provision for credit losses 23 1 (3) 10 7 31 20 20 - (1)
Total operating expenses reported 3,720 4,188 5,452 8,747 5,405 1,281 1,266 1,691 2,101 1,599
Goodwill impairment - - - (2,661) - - - - (380) -
Restructuring expenses (79) (202) (217) (96) - (28) (34) (28) (22) -
Major litigation provisions - (7) (7) (231) (60) - - - - -
Total operating expenses adjusted 3,641 3,979 5,228 5,759 5,345 1,253 1,232 1,663 1,699 1,599
Pre-tax income/(loss) reported 645 43 48 (1,931) 2,014 262 112 261 (314) 511
Total adjustments 79 209 224 2,988 60 28 34 28 402 -
Pre-tax income/(loss) adjusted 724 252 272 1,057 2,074 290 146 289 88 511
Group in CHF mn
2016 2015
Total operating expenses reported 22,337 25,895
Goodwill impairment - (3,797)
Restructuring expenses (540) (355)
Major litigation provisions (2,707) (820)
Debit valuation adjustments (DVA) - -
Certain accounting changes - -
Total operating expenses adjusted 19,090 20,923
FX adjustment 292 319
FX neutral total operating expenses adjusted 19,382 21,242
Notes
Throughout the presentation rounding differences may occur
Unless otherwise noted, all 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 on a “look-through” basis
General notes
AM = Asset Management; APAC = Asia Pacific; BIS = Bank for International Settlements; bn = billion;
CET1 = common equity tier 1; CHF = Swiss franc; C&IC = Corporate & Institutional Clients; Corp. Ctr./CC = Corporate Center;
ECM = Equity Capital Markets; EM = Emerging Markets; FX = foreign exchange; GM = Global Markets;
IBCM = Investment Banking & Capital Markets; IWM = International Wealth Management; M&A = mergers & acquisitions
mn = million; PB = Private Banking; PC = Private Clients; RoRC = return on regulatory capital; RWA= risk-weighted assets;
SRU = Strategic Resolution Unit; SUB = Swiss Universal Bank; (U)HNWI = (Ultra) High Net Worth Individuals; USD = US dollar;
WM&C = Wealth Management & Connected
Abbreviations
Specific notes * “Adjusted operating expenses at constant FX rates” and “adjusted non-compensation operating expenses at constant FX rates” include
adjustments as made in all our disclosures for restructuring expenses, major litigation expenses and a goodwill impairment taken in 4Q15 as well
as adjustments for certain accounting changes (which had not been in place at the launch of the cost savings program), debit valuation
adjustments (DVA) related volatility and for FX, applying the following main currency exchange rates for
1Q15: USD/CHF 0.9465, EUR/CHF 1.0482, GBP/CHF 1.4296, 2Q15: USD/CHF 0.9383, EUR/CHF 1.0418, GBP/CHF 1.4497,
3Q15: USD/CHF 0.9684, EUR/CHF 1.0787, GBP/CHF 1.4891, 4Q15: USD/CHF 1.0010, EUR/CHF 1.0851, GBP/CHF 1.5123,
1Q16: USD/CHF 0.9928, EUR/CHF 1.0941, GBP/CHF 1.4060, 2Q16: USD/CHF 0.9756, EUR/CHF 1.0956, GBP/CHF 1.3845,
3Q16: USD/CHF 0.9728, EUR/CHF 1.0882, GBP/CHF 1.2764, 4Q16: USD/CHF 1.0101, EUR/CHF 1.0798, GBP/CHF 1.2451,
1Q17: USD/CHF 0.9963, EUR/CHF 1.0670, GBP/CHF 1.2464, 2Q17: USD/CHF 0.9736, EUR/CHF 1.0881, GBP/CHF 1.2603,
3Q17: USD/CHF 0.9645, EUR/CHF 1.1413, GBP/CHF 1.2695.
These currency exchange rates are unweighted, i.e. a straight line average of monthly rates. We apply this calculation consistently for the periods
under review. Adjusted non-compensation expenses are adjusted operating expenses excluding compensation and benefits. To calculate adjusted
non-compensation expenses at constant FX rates, we subtract compensation and benefits (adjusted at constant FX rates in the manner described
above) from adjusted operating expenses at constant FX rates.
† Regulatory capital is calculated as the worst of 10% of RWA and 3.5% of leverage exposure. Return on regulatory capital is calculated using
(adjusted) income after tax and assumes a tax rate of 30% and capital allocated based on the worst of 10% of average RWA and 3.5% of
average leverage exposure. For the Markets business within the APAC division and for the Global Markets and Investment Banking & Capital
Markets divisions, return on regulatory capital is based on US dollar denominated numbers. Adjusted return on regulatory capital is calculated
using adjusted results, applying the same methodology to calculate return on regulatory capital.
November 2017