.credit-suisse Annual Report Part 2 Financial report 1999 / 2000

FINANCIAL REPORT

03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 49

Comments to the financial statements

Consolidated income statement

Consolidated balance sheet

Consolidated statement of sourceand application of funds

Consolidated off-balance sheet business

Notes to the consolidated financial statements

Report of the Group’s auditors

Income statement (parent company)

Balance sheet before allocation of retained earnings (parent company)

Notes to the financial statements (parent company)

Proposed allocation of retained earnings

Report of the statutory auditors

50

52

54

55

56

58

101

102

103

104

108

109

49

50

COMMENTS TO THE FINANCIAL STATEMENTS


Credit Suisse Group’s Annual Report contains two sets of financial statements: the

consolidated annual financial statements of Credit Suisse Group at 31 December 1999

and the annual financial statements of Credit Suisse Group, parent company, for the

financial year ended 31 March 2000. Both sets of statements have been examined by

independent auditors. Their reports are presented on pages 101 and 109.

The consolidated financial statements include Credit Suisse First Boston, Credit Suisse,

Neue Aargauer Bank, the Private Banks, the financial subsidiaries of Credit Suisse

Group in Guernsey and Winterthur Insurance.

For the banking and financial businesses, the consolidated financial statements

were prepared pursuant to the accounting rules for banks; for the insurance business,

the accounting rules for insurance companies were applied. ‘Winterthur’ Swiss

Insurance Company (Winterthur) is included in the consolidated financial statements

using the ‘pooling of interests’ method. Significant information about insurance

operations is shown separately in the balance sheet and income statement.

The 1999 financial year Following organisational changes at Credit Suisse

First Boston, in April 1999 Credit Suisse Group repurchased Swiss Re’s 20% minority

position in Credit Suisse Financial Products.

Credit Suisse Group’s acquisition of Warburg Pincus Asset Management

(CHF 36 bn in assets under management) and of a 19.9% stake in the private equity

activities of Warburg, Pincus & Co became effective in July 1999.

In December, the BGP Banca di Gestione Patrimoniale SA, Lugano was founded

with share capital of CHF 50 m. The new private bank is a 100% direct subsidiary of

Credit Suisse Group. Business activities started in February 2000.

In December, Winterthur bought an additional 23% stake in DBV Winterthur

Holding AG, Wiesbaden, from Commerzbank. This stake is composed of a 15% share

held indirectly by Commerzbank through the intermediate WinCom holding and a direct

shareholding of 8%. Winterthur’s participation in DBV Winterthur Holding AG thus

increased to 69%. In the consolidated accounts, the change in equity capital held is

effective from 1 July 1999.


Of the CHF 446 m restructuring provisions available for the Focus project, BZW and

Winterthur at the start of the year, CHF 327 m was used in 1999. The resulting end

balance is CHF 119 m.

Provisions for technology costs declined by CHF 181 m from CHF 247 m at the

beginning of the year to CHF 66 m at the end. In 1999 CHF 96 m was booked

against the reserve specifically earmarked for costs associated with the Y2K date

change. This figure was CHF 163 m in 1998.

Subsequent events In the United Kingdom, Winterthur announced the acquisition of

the National Insurance and Guarantee Corp. Plc. (NIG), London in December. Together

with its subsidiaries, NIG’s gross written premiums for 1999 will amount to some

CHF 1.1 bn. NIG will be consolidated in the accounts as soon as regulatory approval is

obtained, probably in the first quarter of 2000.

In January, Winterthur Group anounced the acquisition of the Japanese life

insurance company, Nicos Life. In the current business year (ending March 2000),

Nicos Life is expected to achieve gross premiums of some CHF 447 m.

51


CONSOLIDATED INCOME STATEMENT

RESULT FROM INTEREST BUSINESS

Interest and discount income

Interest and dividend income from trading portfolios

Interest and dividend income from financialinvestments from banking business

Interest expenses from banking business

NET INTEREST INCOME

RESULT FROM COMMISSION AND SERVICE FEE BUSINESS

Commission income from lending business

Commission from securities and investment transactions

Commission from other services

Commission expenses

NET COMMISSION AND SERVICE FEE INCOME

NET TRADING INCOME

NET INCOME FROM INSURANCE BUSINESS

Premiums earned, net

Claims incurred and actuarial provisions

Commission expenses, net

Investment income from insurance business

NET INCOME FROM INSURANCE BUSINESS

OTHER ORDINARY INCOME

Income from the sale of financial investments

Income from investment activities

– of which from participations valued according to the equity method

– of which from other non-consolidated participations

Real estate income

Sundry ordinary income

Sundry ordinary expenses


NET OPERATING INCOME

Changein %

–12

–26

54

–18

2

52

31

19

51

31

177

–1

–1

4

–3

– 6

–59

– 4

–10

21

18

109

2

–77

28

Changein CHF m

–2,327

–1,435

231

–3,631

100

202

2,493

63

215

2,543

4,200

–274

–275

82

–216

–297

–719

–5

–10

5

5

367

24

–376

6,170

1999in CHF m

16,953

4,127

656

16,484

5,252

594

10,523

393

640

10,870

6,578

26,203

27,120

2,157

8,134

5,060

505

124

95

29

33

703

1,255

110

27,870

1998in CHF m

19,280

5,562

425

20,115

5,152

392

8,030

330

425

8,327

2,378

26,477

27,395

2,075

8,350

5,357

1,224

129

105

24

28

336

1,231

486

21,700

Notes(p. 68 ff)

1, 2, 6

1, 2

1, 2, 7

1, 2, 9, 10

1, 2

52


NET OPERATING INCOME (continued)

Personnel expenses

Other operating expenses

TOTAL OPERATING EXPENSES

GROSS OPERATING PROFIT

Depreciation and write-offs on non-current assets

Valuation adjustments, provisions and lossesfrom banking business

DEPRECIATION, VALUATION ADJUSTMENTS, LOSSES

GROUP PROFIT BEFORE EXTRAORDINARYITEMS AND TAXES

Extraordinary income

Extraordinary expenses

Taxes

GROUP PROFIT

Minority interests

NET PROFIT (AFTER MINORITY INTERESTS)

Changein %

28

28

17

24

38

59

–51

–33

133

– 94

–73

100

66

–20

70

Changein CHF m

6,170

2,923

756

3,679

2,491

388

–1,635

–1,247

3,738

–1,461

– 421

574

2,124

–29

2,153

1999in CHF m

27,870

13,509

5,229

18,738

9,132

1,045

1,540

2,585

6,547

93

152

1,149

5,339

118

5,221

1998in CHF m

21,700

10,586

4,473

15,059

6,641

657

3,175

3,832

2,809

1,554

573

575

3,215

147

3,068

Notes(p. 68 ff)

1, 2

1, 2

1

1, 8

1, 3

1, 4

1, 2

1

53

CONSOLIDATED BALANCE SHEET


ASSETS

Cash and other liquid assets

Money market claims

Due from banks

Claims from insurance business

Due from customers

Mortgages

Securities and precious metals trading portfolios

Financial investments from banking business

Investments from insurance business

Non-consolidated participations

Tangible fixed assets

Intangible assets

Accrued income and prepaid expenses

Other assets

TOTAL ASSETS

Total subordinated claims

Total due from non-consolidated participations

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities in respect of money market paper

Due to banks

Commitments from insurance business

Due to customers, in savings and investment accounts

Due to customers, other

Medium-term notes (cash bonds)

Bonds and mortgage-backed bonds

Accrued expenses and deferred income

Other liabilities

Valuation adjustments and provisions

Technical provisions for insurance business

Reserves for general banking risks

Share capital

Capital reserve

Revaluation reserves from insurance business

Retained earnings

Minority interests in shareholders’ equity

Group profit

– of which minority interests

Total shareholders’ equity

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

Total subordinated liabilities

Total liabilities due to non-consolidated participations

Changein %

36

9

18

–14

2

7

24

8

15

37

7

273

– 6

–14

11

– 41

309

50

29

–25

– 6

2

–34

7

27

– 8

51

11

4

1

6

17

172

–25

66

–20

22

11

10

4

Changein CHF m

828

2,400

24,749

–1,025

1,748

5,995

24,231

1,361

14,906

492

466

2,188

– 605

–7,425

70,309

–1,256

701

7,385

44,276

–2,144

–2,611

3,688

–1,959

2,952

3,138

– 4,427

2,896

10,909

83

62

703

1,035

2,748

–549

2,124

–29

6,206

70,309

1,670

31

31 Dec. 1999in CHF m

3,141

28,994

164,901

6,457

104,931

86,553

126,746

18,828

117,222

1,823

6,828

2,990

9,023

44,309

722,746

1,792

928

22,120

198,324

6,268

44,007

182,249

3,885

47,905

14,916

52,577

8,566

107,561

2,131

5,444

11,696

6,977

1,152

1,629

5,339

118

34,368

722,746

18,194

749


2,313

26,594

140,152

7,482

103,183

80,558

102,515

17,467

102,316

1,331

6,362

802

9,628

51,734

652,437

3,048

227

14,735

154,048

8,412

46,618

178,561

5,844

44,953

11,778

57,004

5,670

96,652

2,048

5,382

10,993

5,942

–1,596

2,178

3,215

147

28,162

652,437

16,524

718

Notes(p. 68 ff)

33

12, 33

33

33

13, 14, 33

14, 33

15, 16, 33

17, 19, 33

18, 19

20, 21

21

21

23

24, 35, 36

33

33

33

33

33

33

27, 33

28

29

30

29, 31

31

31

31

31

31

31

31

31

35, 36

54


CONSOLIDATED STATEMENT OF SOURCE AND APPLICATION OF FUNDS

FROM OPERATIONS,EQUITY TRANSACTIONS AND INVESTMENTS

OPERATING ACTIVITIES

Net profit for the yearProvisions for credit and other risksLossesProvisions for taxesDepreciation and write-offsExtraordinary incomeExtraordinary expensesValuation of participations valued according to the equity methodAccrued income and prepaid expensesAccrued expenses and deferred income

EQUITY TRANSACTIONS

Share capitalCapital surplus and retained earningsDividends paidForeign exchange differencesMinority interests

INVESTMENTS IN LONG-TERM ASSETS

Investments in companies Real estateOther tangible and intangible fixed assets

FINANCIAL INVESTMENTS, PROVISIONS,OTHER ASSETS AND LIABILITIES

Investments from banking businessInvestments from insurance businessValuation adjustments and provisionsTechnical insurance provisions 1

Other assetsOther liabilities

FROM OTHER BALANCE SHEET ITEMS

ASSETS

Money market claimsDue from banksClaims from insurance businessDue from customersMortgages

LIABILITIES

Liabilities in respect of money market paperDue to banksCommitments from insurance businessDue to customersDue to customers, otherBonds and medium-term notes

CHANGE IN LIQUID ASSETS

Securities and precious metals trading portfoliosCash and accounts with central banks1 In line with insurance practice, the change in the technical provisions is shown as a total amount under changes in provisions affecting cashflow.2 The changes are affected to some extent by the changes to accounting principles described on pages 64/65.

1999Net

in/outflowin CHF m

8,399

12,749

787

– 4,085

–1,052

16,660

–34,927

51,587

25,059

Applicationin CHF m

1,488

105

209

1,457

363

1,430

1,450

8,929

3,108

1,164

2,581

1,058

3,265

26,188

1,915

17,010

2,013

Sourcein CHF m

3,215

2,584

101

575

681

462

101

60

1,922

64

514

42

5,424

5,144

5,626

40,234

2,215

2,367

1,311

1,091

1998Net

in/outflowin CHF m

1,186

5,917

226

– 874

– 4,083

–3,588

38,956

– 42,544

–2,402

Applicationin CHF m

32

95

1,430

644

386

152

3,547

1,361

14,906

4,427

2,401

24,953

2,320

6,278

2,144

2,611

24,231

828

Sourcein CHF m

5,339

1,421

78

1,149

1,045

101

605

3,138

62

1,486

1,313

1,020

10,909

7,713

1,025

7,385

44,276

3,688

993

2

2

2

2

55

CONSOLIDATED OFF-BALANCE SHEET BUSINESS


CONTINGENT LIABILITIES

Credit guarantees in form of avals, guaranteesand indemnity liabilities

Bid bonds, delivery and performance bonds,letters of indemnity, other performance-related guarantees

Irrevocable commitments in respect of documentary credits

Other contingent liabilities

TOTAL CONTINGENT LIABILITIES

IRREVOCABLE COMMITMENTS

LIABILITIES FOR CALLS ON SHARES AND OTHER EQUITY

CONFIRMED CREDITS

ANALYSIS OF COLLATERAL AS AT 31 DECEMBER 1999

CONTINGENT LIABILITIES

Credit guarantees in form of avals, guaranteesand indemnity liabilities

Bid bonds, delivery and performance bonds,letters of indemnity, other performance-related guarantees

Irrevocable commitments in respect of documentary credits

Other contingent liabilities

TOTAL CONTINGENT LIABILITIES

At 31 December 1998

IRREVOCABLE COMMITMENTS

At 31 December 1998

LIABILITIES FOR CALLS ON SHARES AND OTHER EQUITY

At 31 December 1998

CONFIRMED CREDITS

At 31 December 1998

FIDUCIARY TRANSACTIONS

Changein %

–24

18

45

4

–1

42

–15

–14

Changein CHF m

–2,115

791

999

160

–165

35,785

– 9

–36


6,755

5,262

3,224

3,870

19,111

120,560

50

226


8,870

4,471

2,225

3,710

19,276

84,775

59

262

Total in CHF m

6,755

5,262

3,224

3,870

19,111

19,276

120,560

84,775

50

59

226

262

Change in %

6

Withoutcollateral

in CHF m

398

2,785

3,008

2,690

8,881

9,178

61,377

40,940

50

59

225

262

Change in CHF m

2,155

Othercollateral

in CHF m

6,313

2,306

216

1,043

9,878

9,759

56,553

40,946

0

0

1

0


35,216

Mortgagecollateral

in CHF m

44

171

0

137

352

339

2,630

2,889

0

0

0

0


37,371

56


DERIVATIVE INSTRUMENTS

INTEREST RATE PRODUCTS

Forward rate agreements

Swaps

Options bought and sold (OTC)

Forwards

Futures

Options bought and sold (traded)

TOTAL INTEREST RATE PRODUCTS

FOREIGN EXCHANGE PRODUCTS

Forwards 1

Swaps 2


Futures


TOTAL FOREIGN EXCHANGE PRODUCTS

PRECIOUS METALS PRODUCTS

Forwards 1


Futures


TOTAL PRECIOUS METALS PRODUCTS

EQUITY/INDEX-RELATED PRODUCTS

Forwards


Futures


TOTAL EQUITY/INDEX-RELATED PRODUCTS

OTHER PRODUCTS

Forwards


Futures


TOTAL OTHER PRODUCTS

TOTAL, GROSS

TOTAL REPLACEMENT VALUESACCORDING TO THE BALANCE SHEET

1 including outstanding spot transactions2 cross-currency interest rate swaps3 positive replacement value after deduction of CHF 1.4 bn (1998: CHF 4.4 bn) of assets pledged as security4 No replacement values are shown for traded derivatives (futures and traded options) subject to daily margining requirements.

Total positive and negative replacement values on traded derivatives amount to CHF 1.1 bn and CHF 1.0 bn respectively.5 of which from insurance business: positive replacement values CHF 0.3 bn (1998 CHF 1.3 bn), negative replacement values CHF 0.4 bn (1998 CHF 0.6 bn)

31 Dec. 1999Negative gross

replacement value 4

in CHF bn

0.3

50.1

9.1

0.5

–

–

60.0

9.7

14.6

3.7

–

–

28.0

1.2

0.7

–

–

1.9

2.8

21.3

–

–

24.1

0.4

0.3

–

–

0.7

114.7

40.4

31 Dec. 1999Positive gross

replacementvalue 4

in CHF bn

0.3

52.7

8.6

0.6

–

–

62.2

10.5

10.8

3.9

–

–

25.2

1.5

0.6

–

–

2.1

2.5

20.2

–

–

22.7

0.5

0.3

–

–

0.8

113.0

37.3

31 Dec. 1999Nominal

valuein CHF bn

305.2

3,354.3

1,186.1

45.3

542.4

348.8

5,782.1

525.7

261.8

280.6

0.5

0.1

1,068.7

17.5

11.2

0.1

0.0

28.8

27.0

295.3

35.7

81.9

439.9

8.7

8.7

7.8

0.1

25.3

7,344.8

31 Dec. 1998Negative gross

replacementvalue

in CHF bn

0.1

60.3

8.8

0.3

–

–

69.5

16.9

11.6

6.1

–

–

34.6

1.1

0.9

–

–

2.0

0.6

14.7

–

–

15.3

0.0

0.1

–

–

0.1

121.5

49.2

31 Dec. 1998Positive gross

replacementvalue

in CHF bn

0.1

65.3

8.5

0.2

–

–

74.1

14.7

9.3

5.5

–

–

29.5

0.9

0.5

–

–

1.4

0.7

13.8

–

–

14.5

0.0

0.3

–

–

0.3

119.8

43.1

31 Dec. 1998Nominal

valuein CHF bn

152.7

2,383.1

914.1

54.0

539.2

633.8

4,676.9

782.2

247.4

342.3

1.5

0.3

1,373.7

18.8

15.4

0.2

0.4

34.8

8.2

191.4

38.6

63.2

301.4

0.1

4.0

8.5

0.1

12.7

6,399.5

3, 5 5 3, 5 5

57

58

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


GENERAL PRINCIPLES

The Group financial statements have been drawn up based on the accounting rules of

the Implementing Ordinance to the Swiss Federal Law on Banks and Savings Banks

of 14 December 1994 (status as at 28 October 1999), supplemented by the pooling-

of-interests method and the provisions of the Swiss accounting and reporting recom-

mendations with respect to insurance companies (FER 14). As required by the pooling-

of-interests method, the consolidated financial statements of Credit Suisse Group show

the combined results of Credit Suisse Group and Winterthur as if the merger had been

effective for all previous periods shown. In addition, the consolidation and valuation

policies reflect the accounting principles set out in the Swiss stock exchange listing

regulations; they also largely conform to the provisions of the 4th and 7th EU directives

and the EU directive governing the financial statements of banks. The financial year

for the Group ends on 31 December. Group companies with a different closing date

prepare interim financial statements as of 31 December for consolidation purposes.

Until the end of 1996, goodwill (the difference between the purchase price and the

amount of equity capital acquired) was set off against equity capital. For subsidiaries

acquired after 1 January 1997, goodwill is stated in the balance sheet under ‘Intangible

assets’ and amortised over its estimated useful life (not exceeding 20 years).

SCOPE AND METHOD OF CONSOLIDATION

All banking, insurance and financial institutions in which Credit Suisse Group has a

direct or an indirect interest of more than 50% as of the balance sheet date are fully

consolidated in the financial statements. For the ‘Winterthur’ Swiss Insurance Company

subgroup, capital is consolidated according to the pooling-of-interests method. For the

other Group companies capital is consolidated according to the purchase method with

effect from 1 January 1990 (or later, if acquired thereafter). Intercompany transactions

and unrealised gains therefrom are eliminated. Minority interests in shareholders’ equity

and net profit are indicated separately, but are viewed as forming an integral part of the

corporate base. Other companies in which the Group has a stake of 20% or more are

accounted for using the equity method. Long-term holdings which are designated for

resale are booked as ‘Financial investments’. Subsidiaries and long-term holdings out-

side the core business, and less significant holdings are not consolidated.


CHANGES TO THE SCOPE OF CONSOLIDATION

The scope of consolidation has undergone the following material changes:

Banking business

Credit Suisse Financial Products

In April 1999 Credit Suisse Group repurchased Swiss Re’s 20% minority position in

Credit Suisse Financial Products. The transaction is reflected in the consolidated

accounts with effect from 1 January 1999. In March 2000, the company was renamed

Credit Suisse First Boston International.

Warburg Pincus Asset Management

In July, the Credit Suisse Asset Management business unit (part of the Credit Suisse

First Boston legal entity) acquired 100% of Warburg Pincus Asset Management,

New York.

BGP Banca di Gestione Patrimoniale SA

In December, the BGP Banca di Gestione Patrimoniale SA, Lugano was founded

with share capital of CHF 50 m. The new private bank, which is a 100% direct sub-

sidiary of Credit Suisse Group, started its operations in February 2000.

Insurance business

DBV-Winterthur

In December, Winterthur bought an additional 23% stake in DBV Winterthur Holding AG,

Wiesbaden, from Commerzbank. This stake is composed of a 15% share held by

Commerzbank indirectly through the intermediate WinCom holding and a direct share-

holding that currently stands at 8%. Winterthur’s participation in DBV Winterthur

Holding AG thus increased to 69%. In Winterthur’s consolidated accounts, the change

in equity capital held is effective from 1 July 1999.

59

60



FOREIGN CURRENCY TRANSLATION

In the annual accounts of the individual Group companies, income and expense items

denominated in foreign currencies are translated into the relevant local reporting

currencies on the basis of the exchange rate as of the transaction date. Assets,

liabilities and off-balance-sheet items are translated using the year-end rate. Hedged

assets and liabilities are carried at their forward hedging rates. For the purposes of

consolidation, the balance sheets of foreign Group companies are translated into Swiss

francs using the year-end exchange rate, and their income statements are translated

using the average exchange rate for the financial year. Translation differences are cred-

ited or debited to shareholders’ equity and are shown separately in the statement of

shareholders’ equity.

The key foreign exchange rates are listed on page 100.

DEVIATIONS FROM THE RELEVANT EU DIRECTIVES

The Swiss accounting rules for banks conform in essence to EU directives and guide-

lines. The areas in which Group accounting policies deviate from the accounting prin-

ciples set out in the directives of the European Union (4th and 7th EU directives and

the EU directive governing the financial statements of banks) can be summarised as

follows:

– the classification criteria used in the balance sheet and the income statement differ

from those set out in the EU directive governing the financial statements of banks;

– the proportions of overall income and expenditure for operations outside Switzerland

are not detailed by geographical location but are provided as combined totals;

– no specific information is given concerning emoluments paid to and liabilities in

respect of Members of the Board of Directors or Members of the Executive Board of

Credit Suisse Group;

– securities and precious metals treated as trading positions are carried at their fair

value. Historical differences between cost and fair value are not disclosed in the

notes to the financial statements;

– there is no formal management report on the business year.

The following are significant deviations from the EU directives governing the financial

statements of insurance companies:

– the classification and presentation used in the financial statements have been adjust-

ed from those set out in the EU directives governing the financial statements of

insurance companies. Winterthur Group publishes an annual report which focuses on

the presentation of the results of the insurance business;

– unrealised gains on life business investments are taken to revaluation reserves as

part of shareholders’ equity and not to funds for future distribution to shareholders

and policyholders.


GENERAL ACCOUNTING AND VALUATION PRINCIPLES

Recording of business All completed business is recorded in the financial state-

ments as follows: foreign exchange, money market and precious metals transactions

are recorded on value (settlement) date. Prior to the value date, foreign exchange and

precious metals transactions are recorded as off-balance-sheet business. Securities

transactions are recorded on a trade date basis.

Repo business Reverse repurchase and repurchase transactions are shown in the

balance sheet as advances secured by securities or as deposits against which the

bank’s securities are pledged. Depending on the type of counterparty, they are shown

as claims on (‘Due from’) or liabilities to (‘Due to’) banks or customers. They are

carried in the balance sheet at the amounts at which the securities were initially

acquired or sold as specified by the respective agreements, plus interest accrued to

the balance sheet date.

Transactions involving non-monetary assets Securities borrowed and lent with

cash collateral and daily margining are included in the balance sheet corresponding to

the accounting treatment for repurchase and reverse repurchase agreements. Securities

borrowed and lent with non-monetary collateral and daily margining are recorded as a

combination of repurchase and reverse repurchase agreements. Securities borrowed

and lent against a fee are recorded in the balance sheet as inventory movement only

when the transferor relinquishes control over the securities. All other claims and liabilities

from transactions involving non-monetary assets (e.g. precious metals and commodities)

are marked to market and shown as claims on (‘Due from’) or liabilities to (‘Due to’)

banks or customers.

Cash, bank balances, money market paper and loans Receivables and liabilities

are generally accounted for at nominal value. Money market instruments held for trading

are carried at their fair value. The necessary provisions for recognisable risks and

potential losses are normally deducted from the appropriate asset items in the balance

sheet. Endangered interest and commission income due from customers and banks are

not booked as ‘Income from interest business’. Instead, they are only included in the

income statement following payment. Provisions for exposures subject to country risk,

default risk and other bank risks are booked to ‘Valuation adjustments and provisions’.

This position contains no undisclosed reserves.

Leasing All leased items (capital goods, vehicles and real estate) are valued using

the annuity method and are stated as a separate item under lendings. The depreciation

charges contained in the rental income are set off directly against the book values of

the corresponding leased assets, so that only the interest portion of the rental income is

shown in the income statement.

61

62



Real estate Real estate is valued at cost (including capital improvements) less depre-

ciation over its useful life (40 – 67 years). No depreciation is charged on land except

where valuation adjustments have been made to allow for a reduction in the market

value.

Other tangible fixed assets Other tangible fixed assets such as computers,

machinery, furnishings, vehicles and other equipment, as well as alterations and

improvements to rented premises, are depreciated using the straight line method

over their estimated useful life (in general 3–5 years).

Intangible assets The goodwill included in this balance sheet position arises from

the capital consolidation of the majority holdings acquired from 1 January 1997.

This goodwill is amortised over its estimated useful life (maximum 20 years). From

1 January 1999, third-party costs relating to the purchase and installation of software

are capitalised and depreciated over the estimated useful life of the software, normally

not exceeding 3 years.

Pension fund As a rule, employees are affiliated to legally autonomous staff pension

funds which are independent of the Group. The requisite contributions are made to the

pension funds and posted under ‘Personnel expenses’.

Taxes Tax expenses are calculated on the basis of the annual results posted in the

individual financial statements of the Group companies. Deferred tax assets and

liabilities are established for the expected future tax implications of temporary differ-

ences between the carrying amounts and the tax bases of assets and liabilities.

Deferred tax assets and liabilities calculated at the expected tax rate on the basis of

adjustments in the valuation of assets and liabilities for Group purposes are charged to

tax expenses and recorded as other assets or provisions. No provision is made for non-

recoverable withholding taxes on undistributed profits of Group companies. Deferred tax

assets arising from tax losses brought forward are similarly not recognised.

Claims and liabilities of related companies Claims and liabilities in respect of

related companies which are accounted for using the equity method and valued at cost

are reported in the notes to the consolidated financial statements.


VALUATION AND ACCOUNTING POLICIES IN RELATION

TO BANK-SPECIFIC POSITIONS

Securities trading portfolio The trading portfolio consists of holdings of readily

realisable securities, securities acquired as a result of underwriting activities and

holdings of precious metals. Securitised and non-securitised options are shown under

‘Other assets’.

Trading balances in bonds, shares and similar securities and precious metals

accounts and holdings are carried at fair value (amount for which an asset could be

exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s-

length transaction). Profits and losses from the valuation of the trading portfolio and

realised gains and losses on these positions are shown under ‘Income from trading’.

Interest and dividend income from the trading portfolio is credited to ‘Result from

interest business’.

Financial investments from banking business This balance sheet item comprises

securities and precious metals positions purchased as a long-term investment.

It also includes real estate and holdings assumed from the lending business and desig-

nated for resale.

Private equity positions (long-term equity financing of companies usually not listed

on a stock exchange) are valued at the lower of cost or market value.

Fixed-interest debt securities which are being held until final maturity are valued

according to the accrual method. In this case, premiums and discounts are accrued or

deferred over the term of the instrument until final maturity in the relevant balance

sheet position. Realised profits or losses which are interest related and which arise from

the early disposal or redemption of the instrument are accrued or deferred over the

remaining term of the instrument, i.e. to the original final maturity, and credited or

debited to ‘Result from interest business’ as appropriate.

Investment holdings of equities and debt securities which are designated for

resale and which do not constitute trading balances are valued at the lower of cost or

market value. The notes to the consolidated financial statements include details of both

the cost price and the market value of these holdings.

Capital gains resulting from the disposal of financial investments at above the

purchase price are shown under ‘Income from the disposal of financial investments’.

Unrealised losses on equity positions as a result of a decrease in their market value,

and unrealised profits which do not exceed the original result of changes in credit-

worthiness are accounted for in the same way as credit business.

Real estate assumed from lending business and designated for resale is valued

according to the lower of cost or market value.

63

64



Reserves for general banking risks Reserves for general banking risks are

precautionary reserves charged to ‘Extraordinary expenses’ to hedge against latent

risks in the bank’s operating activities. Releases are credited to extraordinary income.

Derivatives Forward rate agreements, futures, swaps, options, forward contracts and

other over-the-counter off-balance-sheet instruments held for trading purposes are

carried at their fair value and the resulting profits and losses are included in ‘Net trading

income’ in the income statement. The resulting replacement values are included in

‘Other assets’ or ‘Other liabilities’ as appropriate and are presented net by counterparty

for transactions in those products where the bank has a legal right to set off; otherwise

the replacement values are presented gross by contract.

Hedging transactions are valued using the same procedures as for the underlying

transactions they hedge.

Strategic positions are valued according to the lower of cost or market value.

Derivative financial instruments which are deployed in the context of interest rate risk

management are valued according to the accrual method. The interest component is

accrued or deferred over the term of the instrument according to the annuity method.

Realised profits or losses which are interest related and which arise from the early dis-

posal or redemption of the instrument are also accrued or deferred over the remaining

term of the instrument, i.e. to the original final maturity.

CHANGES TO ACCOUNTING PRINCIPLES

Intangible assets From 1 January 1999, third-party costs relating to the acquisition

and installation of software which meets the entity’s business needs alone are capi-

talised and depreciated over the estimated useful life, normally not exceeding 3 years.

Transactions involving non-monetary assets (SLB) Based on the changes in

accounting rules, securities lending and borrowing transactions are recorded as

described on page 61. Prior to 1999, the securities borrowed and lent in connection

with such transactions were recorded as inventory movements and corresponding

receivables and payables. Using the revised accounting rules, the 1998 figures for the

balance sheet items would have been as follows:


Balance sheet heading Disclosed Under new(in CHF m) amount policy

Due from banks 140,152 134,378

Due from customers 103,183 103,164

Securities and precious metals trading portfolio 102,515 98,386

Due to banks 154,048 158,439

Due to customers 178,561 164,247

VALUATION AND ACCOUNTING POLICIES IN RELATION

TO INSURANCE-SPECIFIC POSITIONS

INVESTMENTS IN RESPECT OF INSURANCE BUSINESS

Real estate Real estate is valued at market price. The market price of a property is

calculated at its capitalised rental income using the interest rate applied in the country

or market in question. Undeveloped plots of land and buildings under construction

are carried at cost.

Bonds and loans Bonds and loans are valued according to the amortised cost

method. The difference between the purchase price and the redemption value is dis-

tributed over the remaining life so that a constant yield is achieved. The corresponding

valuation adjustment is shown under the ‘Net investment income from insurance busi-

ness’ position. Default risk is accounted for through the use of write-offs. Inter-

company transactions and unrealised gains have been eliminated, with the exception

of assets booked as investments from insurance business.

Shares Listed shares are marked to market at year-end. Unlisted shares are valued

at cost. If the yield or intrinsic value is endangered, a valuation adjustment is made.

65

66



Derivatives Derivatives and other financial instruments are generally used to hedge

exposure to changes in the fair value of recognised assets, liabilities and firm

commitments. Any gains and losses are therefore recognised in the income statement

together with the offsetting loss or gain on the hedged item.

Investments for the benefit of life insurance policyholders who bear the

investment risk Investments for the benefit of life insurance policyholders who

bear the investment risk are carried at their market value.

Statement of higher and lower values arising from the uniform valuation of

investments in the Group accounts and revaluation reserves Higher or lower

values arising from the uniform valuation of investments in the Group accounts in com-

parison with the figures contained in the statutory accounts are recorded as follows:

valuation differences resulting from the revaluation of fixed-interest securities and mort-

gages, unlisted shares and non-consolidated long-term holdings are included in the

income statement (under ‘Net investment income from insurance business’).

In the case of listed shares and real estate, compensated write-offs in respect of the

difference between the balance sheet value in the statutory accounts and the cost value

are stated in the income statement (‘Net investment income from insurance business’).

Valuation differences between cost and market values are allocated to shareholders’

equity (‘Revaluation reserves from the insurance business’) directly, without affecting

the income statement, after deferred tax calculated on the basis of a full provision on

unrealised gains for which there is no contractual obligation to pay to policyholders upon

realisation.

Technical provisions The amount of the technical provisions is based on the expected

liabilities due to insured persons and claimants. As a rule, calculations are made

individually, i.e. depending on the insurance contract or claim. Statistical or mathematical

calculation methods are applied if these lead to approximately the same results and if

they conform to the methods approved by the supervisory authorities of the respective

countries. The equalisation reserves legally prescribed and locally created in some

countries are not included in the Group accounts. As a rule, provisions for claims out-

standing are not discounted. Technical provisions for life business are calculated

with regard to local regulations. The surplus due to policyholders is accounted for on

the basis of the resolutions passed by the individual companies as to the distribution

of profit.


CHANGES TO ACCOUNTING PRINCIPLES

In the reporting period, various companies in which Winterthur Group has a majority

interest (mainly finance and real estate companies) have been fully consolidated for the

first time. Only nominal investments outside the insurance sector are still consolidated

using the equity method or accounted for at cost.

Deferred taxes are calculated based on the current tax rates on unrealised capital gains

of the individual companies.

EVENTS SINCE THE BALANCE SHEET DATE

In January 2000, Winterthur Group acquired the Japanese life insurance company,

Nicos Life. In the current business year (ending March 2000), Nicos Life is expected to

achieve gross premiums of some CHF 447 m. Nicos Life will continue to operate as a

legally independent company under its present name. Winterthur assumed the opera-

tional management of the company on 31 March 2000.

67



1 SPLIT OF INCOME STATEMENT INTO BANKINGAND INSURANCE BUSINESS

Net interest income

Net commission and service fee income

Net trading income

Net income from insurance business

Other ordinary income


Salaries and other remuneration

Employee benefits

Other personnel expenses

Personnel expenses

Premises and real estate expenses

Expenses for IT, machinery, furnishings,vehicles and other equipment

Sundry operating expenses


Total operating expenses



Valuation adjustments, provisions and losses

Total depreciation, valuation adjustments, losses

GROUP PROFIT BEFORE EXTRAORDINARYITEMS AND TAXES



Taxes

GROUP PROFIT

Minority interests


Expenses owing to the handling of both claims and investments are allocated to the income from insurance business.1 personnel expenses CHF 618 m (previous year CHF 510 m)2 other operating expenses CHF 487 m (previous year CHF 321 m)

1999in CHF m

5,252

10,870

6,578

5,060

110

27,870

11,556

1,201

752

13,509

933

1,102

3,194

5,229

18,738

9,132

1,045

1,540

2,585

6,547

93

152

1,149

5,339

118

5,221

1998in CHF m

5,152

8,327

2,378

5,357

486

21,700

8,919

1,005

662

10,586

885

921

2,667

4,473

15,059

6,641

657

3,175

3,832

2,809

1,554

573

575

3,215

147

3,068

1999in CHF m

0

0

0

5,060

– 467

4,593

1,225

293

237

1,755

202

249

752

1,203

2,958

1,635

116

0

116

1,519

0

0

340

1,179

90

1,089

1998in CHF m

0

0

0

5,357

– 900

4,457

1,332

325

224

1,881

213

137

826

1,176

3,057

1,400

90

0

90

1,310

543

0

371

1,482

111

1,371

1999in CHF m

5,252

10,870

6,578

0

577

23,277

10,331

908

515

11,754

731

853

2,442

4,026

15,780

7,497

929

1,540

2,469

5,028

93

152

809

4,160

28

4,132

1998in CHF m

5,152

8,327

2,378

0

1,386

17,243

7,587

680

438

8,705

672

784

1,841

3,297

12,002

5,241

567

3,175

3,742

1,499

1,011

573

204

1,733

36

1,697

Banking business Insurance business Total

1, 2 1, 2

2 2

1 1

68


2 INCOME AND EXPENSES FROMORDINARY ACTIVITIES BY ORIGIN

Net interest income

Net commission and service fee income

Net trading income

Income from insurance business

Other ordinary income


Personnel expenses



GROSS OPERATING PROFIT BEFORE TAXES

% of total

Taxes

% of total

GROSS OPERATING PROFIT AFTER TAXES

% of total

3 ANALYSIS OF EXTRAORDINARY INCOME

Release of reserves for general banking risks

Gains from the disposal of participations

Other extraordinary income

TOTAL EXTRAORDINARY INCOME

4 ANALYSIS OF EXTRAORDINARY EXPENSES

Creation of reserves for general banking risks

World War II settlement

Other extraordinary expenses

TOTAL EXTRAORDINARY EXPENSES

1999 1998 ChangeAbroad

in CHF m

262

2,006

4,022

420

–230

6,480

2,701

486

3,187

3,293

467

2,826

Change in %

– 98

– 98

–10

– 94

Change in %

–

–100

–54

–73

Switzerland in CHF m

–162

537

178

–717

–146

–310

222

270

492

– 802

107

– 909

Changein CHF m

– 912

–542

–7

–1,461

Change in CHF m

98

– 459

– 60

– 421

Abroadin CHF m

2,606

6,645

5,207

2,844

–154

17,148

9,724

3,204

12,928

4,220

46%

768

67%

3,452

43%

Switzerlandin CHF m

2,646

4,225

1,371

2,216

264

10,722

3,785

2,025

5,810

4,912

54%

381

33%

4,531

57%

Abroadin CHF m

2,344

4,639

1,185

2,424

76

10,668

7,023

2,718

9,741

927

14%

301

52%

626

10%

1998in CHF m

933

553

68

1,554

1998in CHF m

3

459

111

573

Switzerlandin CHF m

2,808

3,688

1,193

2,933

410

11,032

3,563

1,755

5,318

5,714

86%

274

48%

5,440

90%

1999in CHF m

21

11

61

93

1999in CHF m

101

0

51

152

69



5 INCOME STATEMENT FOR BANKING BUSINESS

NET INTEREST INCOME

RESULT FROM COMMISSION AND SERVICE FEE ACTIVITIES

Commission income from lending business

Commission from securities and investment transactions

Commission from other services

Commission expenses

NET COMMISSION AND SERVICE FEE INCOME

NET TRADING INCOME


Income from the sale of financial investments

Income from investment activities

– of which from participations valued according to the equity method

– of which from other non-consolidated participations

Real estate income

Sundry ordinary income

Sundry ordinary expenses



Personnel expenses





– of which on real estate

– of which on other tangible and intangible fixed assets

– of which on non-consolidated participations

Valuation adjustments, provisions and losses

DEPRECIATION, VALUATION ADJUSTMENTS, LOSSES

ANNUAL PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES



Taxes

ANNUAL PROFIT

Minority interests


Change in %

2

52

31

19

51

31

177

–59

–24

–28

0

18

25

54

–58

35

35

22

31

43

64

6

75

–100

–51

–34

235

– 91

–73

297

140

–22

143

Changein CHF m

100

202

2,493

63

215

2,543

4,200

–719

–23

–23

0

5

81

153

– 809

6,034

3,049

729

3,778

2,256

362

5

362

–5

–1,635

–1 273

3,529

– 918

– 421

605

2,427

– 8

2,435

1999in CHF m

5,252

594

10,523

393

640

10,870

6,578

505

71

60

11

33

403

435

577

23,277

11,754

4,026

15,780

7,497

929

87

842

0

1,540

2,469

5,028

93

152

809

4,160

28

4,132

1998in CHF m

5,152

392

8,030

330

425

8,327

2,378

1,224

94

83

11

28

322

282

1,386

17,243

8,705

3,297

12,002

5,241

567

82

480

5

3,175

3,742

1,499

1,011

573

204

1,733

36

1,697

Notes

6

7

8

70


6 ANALYSIS OF THE RESULT FROM INTEREST BUSINESS

Interest and discount income

Interest income on claims due from customers

Interest income on claims due from banks

Interest income from money market claims

Credit commission treated as interest earnings

Interest income from leasing operations

Total interest and discount income

Interest and dividend income from trading portfolios

Interest income

Dividend income

Total interest and dividend income from trading portfolios

Interest and dividend income from financial investments

Interest income

Dividend income

Total interest and dividend income from financial investments

Interest expenses

Interest expenses for liabilities due to customers

Interest expenses for liabilities due to banks

Total interest expenses

– of which interest expenses for subordinated liabilities

TOTAL INTEREST INCOME

7 ANALYSIS OF TRADING INCOME

Income from securities and commodities trading

Income from foreign exchange and banknote trading

Income from precious metals trading

Income from trading in interest rate instruments

TOTAL TRADING INCOME

8 ANALYSIS OF VALUATION ADJUSTMENTS,PROVISIONS AND LOSSES

For default risks (credit and country risks)

For other business risks

Losses

– of which losses from lending business

VALUATION ADJUSTMENTS, PROVISIONS AND LOSSES

Change in %

–10

–14

–15

–36

25

–12

–32

36

–26

51

71

54

–16

–24

–18

32

2

Changein %

265

–

–30

– 47

177

Changein %

– 61

– 8

–23

–35

–51

Changein CHF m

–1,124

– 939

–145

–138

19

–2,327

–1,605

170

–1,435

176

55

231

–2,242

–1,389

–3,631

208

100

Changein CHF m

3,411

1,205

– 49

–367

4,200

Changein CHF m

–1,574

–38

–23

–18

–1,635

1999in CHF m

10,241

5,540

834

242

96

16,953

3,488

639

4,127

524

132

656

12,072

4,412

16,484

858

5,252

1999in CHF m

4,700

1,345

114

419

6,578

1999in CHF m

1,012

450

78

34

1,540

1998in CHF m

11,365

6,479

979

380

77

19,280

5,093

469

5,562

348

77

425

14,314

5,801

20,115

650

5,152

1998in CHF m

1,289

140

163

786

2,378

1998in CHF m

2,586

488

101

52

3,175

71



9 INCOME STATEMENT FOR INSURANCE BUSINESS

NON-LIFE BUSINESS

Premiums written

Change in provisions for unearned premiumsand in actuarial provisions (health)

PREMIUMS EARNED

Claims and annuities paid

Change in provision for claims and annuities outstanding

CLAIMS INCURRED

Dividends paid

Change in provision for dividends

DIVIDENDS TO POLICYHOLDERS INCURRED

OPERATING EXPENSES

UNDERWRITING RESULT NON-LIFE

Net investment income

Interest on deposits and bank accounts (incl. exchange rate differences)

Other interest paid

Other income and expenses

PROFIT BEFORE TAXES AND MINORITY INTERESTS

LIFE BUSINESS

Premiums written

Change in provisions for unearned premiums

PREMIUMS EARNED

Claims paid

Change in provisions for claims outstanding

CLAIMS INCURRED

CHANGE IN ACTUARIAL PROVISIONS

Bonus allocation

Change in participation fund

ALLOCATION TO PARTICIPATION

OPERATING EXPENSES

Net investment income

Interest on deposits and bank accounts

Interest on bonuses credited to policyholders

Other interest paid

Other income and expenses (incl. exchange rate differences)

PROFIT BEFORE TAXES AND MINORITY INTERESTS

Change in %

3

27

3

9

– 64

3

48

–126

–7

–5

–22

–14

–50

–27

– 83

7

–3

–

– 4

10

–239

11

–13

0

–20

– 4

13

2

– 40

11

–28

–110

32

Changein CHF m

421

–122

299

–716

– 492

–224

–111

134

23

177

275

–319

–70

26

150

62

–503

–70

–573

–700

– 67

–767

1,171

– 5

77

72

–182

107

– 83

–13

85

320

137

1999in CHF m

12,678

–576

12,102

– 8,873

–271

– 9,144

–340

28

–312

–3,594

– 948

1,942

70

–72

–30

962

14,171

–70

14,101

–7,687

–39

–7,726

– 8,092

–1,546

–300

–1,846

–1,541

5,865

124

–130

–217

29

567

1998in CHF m

12,257

– 454

11,803

– 8,157

–763

– 8,920

–229

–106

–335

–3,771

–1,223

2,261

140

– 98

–180

900

14,674

0

14,674

– 6,987

28

– 6,959

– 9,263

–1,541

–377

–1,918

–1,359

5,758

207

–117

–302

–291

430

Notes

10

11

10

11

72


INCOME STATEMENT FOR INSURANCE BUSINESS (continued)

SUMMARY

Profit before taxes and minority interests (non-life business)Profit before taxes and minority interests (life business)

PROFIT BEFORE TAXES, MINORITY INTERESTS,EXTRAORDINARY EXPENSES AND INTEREST ON BONDS

Interest on convertible bonds and warrant issues, goodwillIncome from disposal of investments/business areasTaxes

ANNUAL PROFIT BEFORE MINORITY INTERESTS

Minority interests

ANNUAL PROFIT AFTER MINORITY INTERESTS

10 ANALYSIS OF DIRECT BUSINESS,GEOGRAPHICAL DISTRIBUTION

Europe

Non-life Life

EUROPE, TOTAL

North America

Non-life Life

NORTH AMERICA, TOTAL

Asia-Pacific

Non-life Life

ASIA-PACIFIC, TOTAL

Other regions

Non-lifeLife

OTHER REGIONS, TOTAL

DIRECT BUSINESS, GROSS, TOTAL

Reinsurance assumed, gross

Non-lifeLife

REINSURANCE ASSUMED, GROSS, TOTAL

TOTAL BUSINESS, GROSS

Reinsurance ceded

Non-life Life

REINSURANCE CEDED, TOTAL

Business, net

Non-life Life

TOTAL BUSINESS, NET

Home market, Switzerland

Non-life Life

HOME MARKET, SWITZERLAND, TOTAL

Changein %

7

32

15

– 50

100

– 8

–20

–19

–21

Changein %

3

–3

0

12

–100

12

8

74

26

– 9

0

– 9

1

–56

– 99

– 67

–1

–14

– 40

–17

3

–3

0

–2

–13

–10

Change in CHF m

62

137

199

10

–543

31

–303

21

–282

Changein CHF m

312

–370

–58

277

–5

272

18

63

81

– 4

0

– 4

291

– 403

–252

– 655

–364

221

61

282

421

–503

– 82

– 45

–1,134

–1,179

1999in CHF m

962567

1,529

–100

–340

1,179

– 90

1,089

1999in CHF m

10,76114,114

24,875

2,6270

2,627

243148

391

420

42

27,935

3202

322

28,257

–1,315– 93

–1,408

12,67814,171

26,849

2,8677,820

10,687

1998in CHF m

900

430

1,330

–20

543

–371

1,482

–111

1,371

1998in CHF m

10,449

14,484

24,933

2,350

5

2,355

225

85

310

46

0

46

27,644

723

254

977

28,621

–1,536

–154

–1,690

12,257

14,674

26,931

2,912

8,954

11,866

73



11 ANALYSIS OF NET INVESTMENT INCOME

Real estateNon-lifeLife

REAL ESTATE, TOTAL

MortgagesNon-lifeLife

MORTGAGES, TOTAL

Bonds and loansNon-lifeLife

BONDS AND LOANS, TOTAL

SharesNon-lifeLife

SHARES, TOTAL

Non-consolidated participationsNon-lifeLife

NON-CONSOLIDATED PARTICIPATIONS, TOTAL

Short-term investmentsNon-lifeLife

SHORT-TERM INVESTMENTS, TOTAL

NON-LIFE

LIFE

INVESTMENT INCOME, TOTAL

Profits and losses on investmentsRealised gains on real estateRealised losses on real estateRealised gains/realised losses (–) on other investmentsDepreciation (–)/appreciation on investments

NON-LIFE

Realised gains on real estateRealised losses on real estate Realised gains/realised losses (–) on other investmentsDepreciation (–)/appreciation on investments

LIFE

PROFITS AND LOSSES ON INVESTMENTS, TOTAL

Investment incomeProfits and losses (–)Net investment income where the investment risk is borne by the policyholdersInvestment expensesNon-lifeLife

INVESTMENT EXPENSES, TOTAL

NON-LIFE

LIFE

NET INVESTMENT INCOME WHERE THE INVESTMENT RISKIS BORNE BY THE POLICYHOLDERS

NET INVESTMENT INCOME, TOTAL

Change in %

81

3

–55

4

–21

0

122143

137

200157

181

–11–17

–14

12

12

12

–59

– 48– 69

– 47

–14–100–52

–133

–35

–39

–3

316

180

62126

103

–14

– 6

180

–3

Changein CHF m

133

16

–321

18

–1517

2

160421

581

1811

29

– 6–10

–16

167

463

630

34–17

– 49634

– 445

–11

–1,188530

– 658

–1,103

–3

455

452

– 41–150

–191

–319

–345

452

–212

1999in CHF m

177393

570

58408

466

9352,625

3,560

291715

1,006

2718

45

5149

100

1,539

4,208

5,747

35– 46536–15

510

60

1,085132

1,223

1,733

104599

703

–107–269

–376

1,942

5,162

703

7,807

1998in CHF m

164

390

554

61387

448

9502,608

3,558

131294

425

97

16

5759

116

1,372

3,745

5,117

1–29

1,032– 49

955

7–1

2,273–398

1,881

2,836

107

144

251

– 66–119

–185

2,261

5,507

251

8,019

74


12 MONEY MARKET CLAIMS

Bills of exchange and money market paperrediscountable or pledgeable at central banks

– of which treasury bills

Other bills of exchange and money market paper

TOTAL MONEY MARKET CLAIMS

13 DUE FROM CUSTOMERS FROM LEASE FINANCING

Car leasing

Real estate leasing

Leasing of capital goods

TOTAL DUE FROM CUSTOMERS FROM LEASE FINANCING

14 ANALYSIS OF LOAN COLLATERAL AT 31 DECEMBER 1999

Due from customers

Mortgages

Residential properties

Business and office properties

Commercial and industrial properties

Other properties

TOTAL LOAN COLLATERAL

At 31 December 1998

15 SECURITIES AND PRECIOUS METALS TRADING PORTFOLIOS

Interest-bearing securities and rights

Listed on stock exchange

Unlisted

– of which own bonds and medium-term notes

Equities

– of which own shares

Precious metals

TOTAL SECURITIES AND PRECIOUS METALS TRADING PORTFOLIOS

– of which securities rediscountable or pledgeable at central banks

Substantial claims and liabilities included in other balance sheet positions.These are valued at fair value and any profit/loss on them is shown under trading income.

Lent trading positions (Due from banks and customers)

Borrowed trading positions (Due to banks and customers)

Positive replacement values of derivative instruments from trading activities (Other assets)

Negative replacement values of derivative instruments from trading activities (Other liabilities)

Change in %

–39

– 63

146

9

Change in %

15

68

43

41

Totalin CHF m

104,931

86,553

191,484

183,741

Change in %

16

20

9

–55

42

45

9

24

54

–100

– 87

–17

–18

Changein CHF m

–7,703

–10,215

10,103

2,400

Changein CHF m

55

198

391

644

Withoutcollateral

in CHF m

39,615

39,615

43,406

Changein CHF m

10,806

8,320

2,486

–182

13,266

1,048

159

24,231

15,111

– 44,959

–32,784

– 8,083

– 9,238


19,669

16,243

6,925

26,594


362

292

903

1,557

Othercollateral

in CHF m

59,452

59,452

53,581


68,830

41,138

27,692

333

31,886

2,344

1,799

102,515

28,186

44,959

37,487

47,046

50,413


11,966

6,028

17,028

28,994


417

490

1,294

2,201

Mortgagecollateral

in CHF m

5,864

86,553

60,054

6,130

9,985

10,384

92,417

86,754


79,636

49,458

30,178

151

45,152

3,392

1,958

126,746

43,297

0

4,703

38,963

41,175

75



16 OWN SHARES INCLUDED IN SECURITIES TRADING PORTFOLIOS

In registered share equivalents, including derivatives

At beginning of financial year

At end of financial year

17 FINANCIAL INVESTMENTS FROM Book value Cost Market valueBANKING BUSINESS IN CHF M

Interest-bearing securities and rights

Listed on stock exchange

Unlisted

– of which valued according to the accrual method

– of which valued at lower of cost or market value

– of which own bonds and medium-term notes

Equities

– of which own shares

– of which qualifying participations

Precious metals

Real estate

TOTAL FINANCIAL INVESTMENTS FROMBANKING BUSINESS

– of which valued at lower of cost or market value

– of which securities rediscountable or– pledgeable at central banks

Borrowed financial investments 1

1 shown in the consolidated balance sheet as due to banks or customers

18 INVESTMENTS FROM INSURANCE BUSINESS

Real estate at market value

Non-life

Life

REAL ESTATE AT MARKET VALUE, TOTAL

Mortgages at redemption value

Non-life

Life

MORTGAGES AT REDEMPTION VALUE, TOTAL

Continued

1998in CHF m

108

92

31 Dec. 1998

–

–

–

–

3,812

–

7,201

–

–

8

1,783

–

12,804

–

–

Change in %

5

0

2

5

2

2

1998No. of shares

477,971

427,516

31 Dec. 1999

–

–

–

–

734

–

8,767

–

–

9

2,055

–

11,565

–

–

Changein CHF m

209

19

228

62

129

191

1999No. of shares

427,516

109,690

31 Dec. 1999

–

–

–

–

737

–

6,440

–

–

9

2,203

–

9,389

–

–


4,176

8,839

13,015

1,336

7,454

8,790

21,805

1999in CHF m

92

36

31 Dec. 1998

–

–

–

–

3,878

–

4,793

–

–

8

1,924

–

10,603

–

–


3,967

8,820

12,787

1,274

7,325

8,599

21,386

31 Dec. 1999

10,653

9,204

1,449

9,940

713

2

6,111

204

2,606

9

2,055

18,828

8,888

9,556

0

31 Dec. 1998

11,118

10,832

286

7,308

3,810

61

4,558

0

817

8

1,783

17,467

10,159

10,002

3,067

76


18 INVESTMENTS FROM INSURANCE BUSINESS

Continued

Bonds and loans at amortised cost

Non-life

Life

BONDS AND LOANS AT AMORTISED COST, TOTAL

Shares at market value

Non-life

Life

SHARES AT MARKET VALUE, TOTAL

Non-consolidated participations at cost

Non-life

Life

NON-CONSOLIDATED PARTICIPATIONS AT COST, TOTAL

Short-term investments at par value

Non-life

Life

SHORT-TERM INVESTMENTS AT PAR VALUE, TOTAL

Investments where the investment risk is borne by the policyholders

Real estate at market value

Bonds and loans at amortised cost

Shares at market value

Short-term investments at par value

INVESTMENTS WHERE THE INVESTMENTRISK IS BORNE BY THE POLICYHOLDERS, TOTAL

Less mortgages and non-consolidated participations not included in investments from insurance business

TOTAL INVESTMENTS FROM INSURANCE BUSINESS

ADDITIONAL DATA ON INVESTMENTS

Real estate at cost value

Non-life

Life

REAL ESTATE AT COST VALUE, TOTAL

Shares at cost value

Non-life

Life

SHARES AT COST VALUE, TOTAL

Bonds and loans at market value

Non-life

Life

BONDS AND LOANS AT MARKET VALUE, TOTAL

Change in %

11

10

10

33

35

34

–3

– 63

–26

–17

– 69

– 44

21

16

58

26

46

0

15

8

2

4

26

26

26

5

4

4

Changein CHF m

1,684

4,338

6,022

1,762

6,098

7,860

–10

–146

–156

–245

–1,069

–1,314

18

110

1,794

188

2,110

35

14,906

256

198

454

1,007

3,244

4,251

812

1,896

2,708


21,805

16,592

48,477

65,069

7,137

23,621

30,758

347

87

434

1,201

477

1,678

104

788

4,912

898

6,702

9,224

117,222

3,580

8,251

11,831

4,874

15,761

20,635

16,596

48,736

65,332


21,386

14,908

44,139

59,047

5,375

17,523

22,898

357

233

590

1,446

1,546

2,992

86

678

3,118

710

4,592

9,189

102,316

3,324

8,053

11,377

3,867

12,517

16,384

15,784

46,840

62,624

77



19 OWN SHARES INCLUDED IN FINANCIAL INVESTMENTSFROM BANKING AND INSURANCE BUSINESS

Registered shares, at beginning of financial year

Additions (purchase price)

Disposals (selling price)

Registered shares, at end of financial year

20 NON-CONSOLIDATED PARTICIPATIONS

Participations valued according to the equity method

Other non-consolidated participations

TOTAL NON-CONSOLIDATED PARTICIPATIONS

With market value

Without market value

21 ANALYSIS OF CAPITALASSETS IN CHF M

Participations valued accordingto the equity method

Other non-consolidatedparticipations


Premises used by the bank

Other real estate

Real estate

Other tangible fixed assets

Intangible assets

TOTAL

22 ADDITIONAL INFORMATION ON FIXED ASSETS

Fire insurance value of real estate

Fire insurance value of other tangible fixed assets

Future leasing instalments from operational leasing

23 OTHER ASSETS

Positive replacement value of derivative instruments

– of which trading

– of which other

Compensation account

Deferred tax assets

Other

TOTAL OTHER ASSETS

1998in CHF m

18

4

16

5

Changein %

108

–37

37

–11

48

Change in %

5

32

56

Change in %

–16

–17

44

–100

59

–19

–14

1998No. of shares

189,208

14,827

182,710

21,325

Changein CHF m

736

–244

492

–27

519

Changein CHF m

737

767

52

Change in CHF m

–7,833

– 8,083

250

235

717

–544

–7,425

1999No. of shares

21,325

36,206

38,297

19,234


1,415

408

1,823

223

1,600


16,639

3,194

145


39,780

38,963

817

235

1,935

2,359

44,309

1999in CHF m

5

10

10

6


679

652

1,331

250

1,081


15,902

2,427

93


47,613

47,046

567

0

1,218

2,903

51,734

Bookvalue at31 Dec.

1998

679

652

1,331

3,811

491

4,302

2,060

802

8,495

Foreign ex-change diff.

and reclassifi-cations

186

39

225

44

10

54

95

171

545

Write-offs/depreciation

0

0

0

– 80

–7

– 87

–791

–167

–1,045

Disposals

–109

–15

–124

–17

– 48

– 65

–58

–55

–302

Additions

529

208

737

143

8

151

1,158

2,242

4,288

Change inscope of

consolidation

130

– 476

–346

1

11

12

–3

–3

–340

Write-offs/ accumulateddepreciation

–1

–5

– 6

– 664

– 47

–711

–1,617

–119

–2,453

Historicalvalue

680

657

1,337

4,475

538

5,013

3,677

921

10,948

Book value at31 Dec.

1999

1,415

408

1,823

3,902

465

4,367

2,461

2,990

11,641

78


24 ANALYSIS OF ASSETS BY COUNTRY/GROUPS OF COUNTRIES

SwitzerlandEU, Liechtenstein and EFTA– of which United Kingdom

GermanyFranceItalySpainLiechtensteinEFTA

USACanadaMexicoJapanAustraliaNew ZealandSouth AfricaFinancial centres outside industrialised countries– of which Hong Kong

SingaporeBahamasCayman Islands

Other Europe– of which Russia

Czech RepublicPolandHungary

Middle East countriesCentral and South America– of which Argentina

BrazilAsia-Pacific regionAfrica

TOTAL ASSETS

The above analysis is based on the location of assets and does not take any collateral or hedges through structured off-balance-sheet transactions into account. Market and credit risks can thereforenot be judged on the basis of the above schedule.

25 ASSETS PLEDGED OR ASSIGNED ANDASSETS SUBJECT TO OWNERSHIP RESERVATION

Assets pledged and assigned as collateralActual commitments secured

No assets were under reservation of ownership either in 1999 or in previous years.

26 LIABILITIES TO OWN PENSION FUNDS

TOTAL

31 Dec. 1999in %

27

34

13

8

2

3

1

~

~

26

~

~

5

1

~

~

3

~

1

~

1

1

~

~

~

~

1

1

~

1

1

~

100


56,180

26,239

31 Dec. 1998 in %

1,238


195,699

244,400

96,869

61,213

16,761

18,490

8,184

1,421

1,375

184,467

3,953

1,348

34,647

4,351

905

1,239

18,722

2,720

4,111

1,143

4,791

6,641

2,807

396

249

364

4,911

8,541

1,094

6,223

11,421

1,501

722,746


82,678

73,344


1,001

31 Dec. 1998in %

28

31

13

3

2

2

1

~

~

24

~

~

9

1

~

~

3

~

~

~

1

1

1

~

~

~

1

1

~

1

1

~

100

Changein %

47

180

Changein %

–19


184,429

203,006

82,298

17,236

14,776

13,413

8,137

1,533

958

153,599

3,038

1,263

57,595

3,855

1,221

1,530

16,903

2,061

2,776

375

7,396

7,970

3,640

312

198

134

2,638

7,639

1,037

5,149

6,634

1,117

652,437

Changein CHF m

26,498

47,105

Changein CHF m

–237

79



27 OUTSTANDING BONDS ISSUED – SUMMARY

Bonds

Bonds issued by the central issuing office

Mortgage bonds issued by the central mortgage bond institutions

TOTAL OUTSTANDING BONDS ISSUED

27a BONDS ISSUED BY CREDIT SUISSE GROUP

Year Earliest date Par valueRedemption Interest rate of issue callable in m

23.02.2000 7.00% 1990 CHF 200

28.02.2000 2.25% Convertible bond 1997 CHF 400 1

06.08.2001 2.25% 1993 CHF 500 7

15.12.2003 6.00% 1994 CHF 250 1

31.10.2006 4.00% 1997 CHF 800

23.05.2007 4.00% 1997 CHF 1,000

15.09.2008 3.50% 1998 CHF 500

02.07.2009 3.50% 1999 CHF 500

27b BONDS ISSUED BY SUBSIDIARIES

Credit Suisse Group Finance (Guernsey) Ltd., Guernsey

24.02.2003 5.50% 1999 USD 250

17.02.2004 3.75% 1999 EUR 250

19.11.2002 4.88% Convertible bond 1992 USD 16 1

04.03.2004 2.50% 1999 CHF 250

29.07.2019 variable Floating rate notes 1999 EUR 400

All bonds issued by Credit Suisse Group Finance (Guernsey) Ltd. are guaranteed by Credit Suisse Group.

Credit Suisse First Boston, Zurich

31.01.2000 7.25% 1990 CHF 150 1

15.09.2000 4.50% 1995 CHF 250

15.10.2000 5.75% 1997 USD 1,997 2

05.06.2001 7.25% 1990 CHF 170

31.07.2001 7.00% 1991 CHF 150 1

15.10.2001 5.75% 1997 USD 1,497 2

15.01.2002 7.00% 1992 CHF 100 1

20.02.2002 7.50% 1991 CHF 200 1,6

30.03.2002 7.25% 1990 30.03.2000 CHF 150 1,6

15.05.2002 6.75% 1992 CHF 60

15.01.2003 7.75% 1991 CHF 100 1,6

15.01.2003 7.25% 1992 CHF 100 1,6

01.02.2003 5.00% 1988 01.02.2000 CHF 170 1,6

31.03.2003 3.50% 1993 CHF 200 1

25.04.2003 variable 1996 USD 75 3

29.09.2003 6.25% 1993 USD 200 1,3

18.11.2003 6.13% 1993 DEM 600 1,3

22.04.2004 4.38% 1996 CHF 200

Changein %

7

–35

10

7

Changein CHF m

2,850

– 40

142

2,952


43,383

113

1,457

44,953


46,233

73

1,599

47,905

80


BONDS ISSUED BY SUBSIDIARIES (continued) Year Earliest date Par valueRedemption Interest rate of issue callable in m

18.11.2004 8.50% 1994 USD 300 1,3

30.12.2004 6.13% 1994 DEM 100 1,3

02.02.2005 5.50% 1995 CHF 100 6

31.03.2005 5.75% 1995 CHF 225 1

13.11.2005 3.13% 1995 CHF 3001,6,7

17.11.2005 2.00% 1997 USD 100 3

10.11.2005 2.00% 1997 USD 200 3

30.06.2006 7.21% 1996 USD 238 1,4

30.06.2006 6.84% 1997 USD 95 1,4

perpetual 7.90% 1997 01.05.2007 USD 500 1,3

perpetual 6.50% 1997 12.06.2007 FRF 750 1,3

perpetual 6.50% 1997 12.06.2007 FRF 500 1,3

06.07.2007 5.25% 1995 CHF 150 1

06.07.2007 5.25% 1995 CHF 100 1

perpetual 4.38% 1997 23.07.2007 CHF 498 1,3

perpetual 7.74% 1997 10.07.2007 USD 100 1

08.02.2008 4.50% 1996 CHF 200 1,6

19.02.2008 2.00% 1998 USD 250 3

01.05.2008 6.50% 1998 USD 200 1,5

perpetual 8.25% 1997 10.07.2009 GBP 150 1,3

13.10.2009 6.25% 1999 EUR 225 1,3

15.12.2009 6.00% 1999 EUR 150 1,3

11.05.2010 5.75% 1998 DEM 415 1,3

29.06.2011 7.16% 1999 USD 125 1,4

22.10.2014 8.68% 1999 EUR 15 1,3

10.03.2016 5.00% 1986 10.03.2006 CHF 200 1

15.10.2019 7.15% 1999 EUR 12 1,3

03.01.2022 variable 1999 USD 5 1,3

30.12.2024 variable 1999 USD 24 1,3

02.01.2025 variable 1999 USD 15 1,3

02.01.2026 variable 1999 USD 20 1,3

30.12.2026 variable 1999 USD 46 1,3

30.12.2027 variable 1999 USD 19 1,3

03.01.2028 variable 1999 USD 40 1,3

perpetual 4.51% 1998 01.12.2028 JPY 10,000 1,3

15.10.2029 7.05% 1999 EUR 25 1,3

20.10.2029 9.35% 1999 EUR 25 1,3

Credit Suisse, Zurich

18.04.2000 7.25% 1990 CHF 110 1

20.02.2001 7.50% 1991 CHF 150 1

28.07.2001 5.00% 1994 CHF 200

17.09.2001 7.00% 1991 CHF 150 1

17.12.2001 2.75% 1993 CHF 125 1

16.03.2002 6.75% 1992 CHF 200

30.06.2002 7.25% 1992 CHF 100

25.09.2002 7.75% 1992 CHF 100 1

81




31.03.2003 5.25% 1993 CHF 250

28.04.2005 5.75% 1995 CHF 120 1

12.10.2005 5.00% 1995 CHF 150 1

05.01.2006 4.38% 1996 CHF 150 1

31.07.2009 4.00% 1997 CHF 200 1

12.11.2009 5.00% 1999 CHF 600 1

Neue Aargauer Bank, Aarau

28.06.2002 4.25% 1996 CHF 100

10.04.2000 7.13% Central issuing office of the Association of Swiss Regional Banks 1990 CHF 5 1

11.03.2001 7.25% Central issuing office of the Association of Swiss Regional Banks 1991 CHF 5 1

2000/2001 4.5%–7.6% Central issuing office of the Association of Swiss Regional Banks 1992/1993 CHF 63

2000 –2007 3.3%–7.4% Mortgage bonds issued by the Swiss Mortgage 1990 –1999 CHF 1,000Bond Bank, Zurich

Credit Suisse (Luxembourg) S.A., Luxembourg

31.12.2001 9.13% 1991 LUF 2,500 1

06.08.2003 7.25% 1993 LUF 1,500 1

Credit Suisse Guernsey Branch, Guernsey

perpetual 6.25% 1999 9.7.2009 EUR 125 1

Credit Suisse First Boston Finance (Guernsey) Ltd., Guernsey

20.02.2000 0.00% 1990 CAD 500

31.10.2002 0.00% 1992 DEM 500

Credit Suisse First Boston International (Guernsey) Ltd., Guernsey

20.03.2000 various 1999 USD 100

20.03.2000 various 1999 USD 15

20.03.2000 various 1999 USD 5

03.04.2000 5.93% 1998 USD 10

14.07.2000 various 1999 USD 100

02.10.2000 various 1999 USD 325

02.04.2001 4.34% 1998 DEM 10

02.04.2001 4.23% 1998 DEM 3

29.08.2003 2.67% 1998 CHF 19

Credit Suisse First Boston Finance B.V., Amsterdam

22.02.2000 7.50% 1992 NLG 350

15.06.2000 7.75% 1993 LUF 2,000 1

01.07.2003 6.07% 1993 LUF 3,000 1

perpetual 5.69% 1986 USD 150

26.05.2003 5.88% 1993 USD 200 1

25.08.2003 5.50% 1993 USD 200 1

82



Credit Suisse First Boston (Cayman) Ltd., Cayman Islands

01.02.2000 variable 1998/1999 RUR 1,381

01.05.2000 variable 1999 RUR 174

01.07.2000 variable 1999 RUR 34

19.07.2000 10.00% 1997 USD 4

08.08.2000 10.00% 1997 USD 4

01.09.2000 variable 1998/1999 RUR 635

01.10.2000 variable 1998/1999 RUR 1,542

30.10.2000 variable 1997 USD 10

01.01.2001 variable 1998/1999 RUR 4,022

01.05.2001 variable 1998 USD 25

01.08.2001 variable 1998 RUR 670

01.09.2001 variable 1998/1999 RUR 3,333

01.12.2001 variable 1999 RUR 1,385

01.02.2002 variable 1999 RUR 518

01.03.2002 variable 1998 RUR 1

01.05.2002 variable 1999 RUR 462

01.06.2002 variable 1999 RUR 561

01.09.2002 variable 1999 RUR 417

01.10.2002 variable 1999 RUR 432

01.01.2003 variable 1999 RUR 610

01.02.2003 variable 1999 RUR 666

01.03.2003 variable 1998 RUR 2

01.05.2003 variable 1999 RUR 611

01.06.2003 variable 1999 RUR 569

01.09.2003 variable 1999 RUR 748

01.10.2003 variable 1999 RUR 424

01.01.2004 variable 1999 RUR 404

01.03.2004 variable 1998 RUR 67

01.03.2005 variable 1998 RUR 3

Credit Suisse First Boston Inc., New York

03.03.2000 6.15% 1993 USD 10

03.05.2000 5.60% 1995 DEM 147 1

15.09.2000 5.32% 1995 USD 25

01.10.2000 5.32% 1995 USD 35

01.10.2000 5.32% 1996 USD 15

02.11.2000 5.72% 1994 PTE 32 1

14.02.2001 5.92% 1996 DEM 136 1

26.03.2001 5.75% 1996 USD 5 1

17.04.2001 5.89% 1996 USD 20 1

30.04.2001 5.79% 1992 USD 200 1

06.06.2001 5.79% 1994 USD 52 1

08.08.2001 5.68% 1996 USD 2 1

08.08.2001 5.88% 1996 USD 10 1

16.08.2001 5.76% 1995 FRF 156

83




01.08.2002 6.07% 1994 USD 5 1

03.09.2002 7.83% 1992 USD 3

15.01.2003 6.54% 1993 USD 5 1

03.02.2003 6.50% 1993 USD 5 1

10.02.2003 6.45% 1993 USD 35

07.04.2003 6.07% 1992 USD 7

27.04.2003 5.69% 1993 USD 17 1

27.04.2003 5.50% 1996 USD 2

20.02.2004 6.08% 1994 USD 150 1

08.03.2004 8.95% 1992 USD 22

09.03.2004 8.75% 1992 USD 40

15.03.2004 5.71% 1994 USD 165 1

05.04.2004 5.96% 1995 DEM 107 1

30.04.2004 9.30% 1992 USD 100

27.10.2005 5.60% 1993 USD 200 1

07.11.2005 6.95% 1995 USD 5 1

15.05.2006 6.09% 1996 USD 269 1

27.02.2007 5.98% 1995 USD 15 1

27.02.2007 5.95% 1995 USD 15 1

28.02.2007 5.98% 1995 USD 15 1

28.02.2007 5.95% 1995 USD 15 1

15.02.2013 8.50% 1993 USD 3

02.04.2018 7.71% 1993 USD 5 1

various variable 1993 USD 154 1

various variable 1993–1998 USD 36 1

various variable 1995/1996 USD 45 1

Credit Suisse First Boston International, London

2000 various 1997/1998 DEM 41

15.08.2000 variable 1999 EUR 6

21.12.2000 3.00% 1995 FIM 25

2000 various 1997–1999 GBP 42

2000 various 1999 HKD 2,851

2000 various 1997/1998 ITL 109,000

2000 various 1995 –1999 JPY 23,293

2000 0.00% 1994 –1998 NLG 67

2000 variable 1997/1998 PTE 6,750

2000 various 1998 SEK 197

2000 various 1992–1999 USD 380

13.06.2001 6.50% 1997 BEF 100

2001 various 1996 –1998 DEM 100

2001 various 1994 –1999 EUR 18

28.01.2001 0.00% 1999 HKD 30

2001 various 1997/1998 ITL 125,000

2001 various 1995 –1999 JPY 16,817

24.09.2001 0.00% 1998 NLG 18

01.10.2001 various 1998 PTE 1,500

84



01.02.2001 various 1998 SEK 150

2001 various 1995 –1999 USD 652

15.08.2001 variable 1991 USD 109 1

31.10.2002 variable 1997 CHF 75 1

2002 various 1996 –1998 DEM 70

30.07.2002 0.00% 1997 EUR 10

19.12.2002 0.00% 1997 ITL 20,000 1

2002 various 1996 –1999 JPY 74,230

2002 various 1992 LUF 3,500 1

2002 various 1996 –1999 USD 153

01.08.2003 various 1998 ATS 400

13.06.2003 8.00% 1997 BEF 200

31.03.2003 5.20% 1998 EUR 7

06.11.2003 0.00% 1995 FRF 25

2003 various 1997/1998 GBP 39

16.04.2003 0.00% 1998 GRD 14,393

2003 various 1997/1998 ITL 139,000

2003 various 1997–1999 JPY 4,700

19.03.2003 7.63% 1993 LUF 1,500 1

2003 various 1995 –1998 USD 532

01.12.2004 0.00% 1994 CHF 13 1

2004 variable 1997 DEM 25

16.06.2004 8.50% 1997 EUR 3

01.12.2004 0.00% 1994 EUR 10 1

15.02.2004 variable 1999 GBP 5

2004 various 1997/1998 ITL 441,000

2004 0.00% 1997/1998 ITL 105,000 1

2004 various 1995 –1998 JPY 4,500

07.02.2004 0.00% 1997 NOK 70

2004 various 1996 –1998 USD 201

08.06.2005 8.25% 1995 BEF 200 1

27.09.2005 variable 1995 DEM 47 1

08.12.2005 0.00% 1997 FRF 200

2005 various 1997/1998 ITL 457,000

2005 various 1997/1998 ITL 70,000 1

2005 various 1996/1997 JPY 4,000

26.04.2005 variable 1998 PTE 500

2005 0.00% 1997 PTE 9,362 1

2005 various 1995 –1998 USD 1,286

2005 variable 1996 –1998 DEM 19 1

06.11.2006 0.00% 1997 FIM 50

16.02.2006 9.13% 1998 GBP 5

2006 various 1998 ITL 331,200

2006 0.00% 1998 ITL 10,020 1

19.12.2006 5.70% 1996 JPY 500

2006 various 1995 –1998 USD 108

28.07.2006 0.00% 1994 USD 40 1

85




2007 various 1996/1997 CHF 120

2007 various 1997 DEM 70

23.05.2007 variable 1997 DEM 80 1

06.11.2007 0.00% 1997 FIM 50

2007 various 1997 ITL 103,600

2007 various 1996/1997 JPY 5,000

2007 various 1997/1998 USD 164

02.07.2007 variable 1997 USD 40 1

2008 various 1998 DEM 155

2008 0.00% 1993/1994 DEM 153 1

2008 0.00% 1998 ITL 68,000

24.02.2008 variable 1998 ITL 100,000 1

2008 various 1997/1998 JPY 1,200

02.06.2008 variable 1998 PTE 500

2008 various 1995 –1998 USD 261

2009 various 1997/1998 DEM 108

2009 0.00% 1994 –1996 DEM 213 1

24.08.2009 variable 1999 EUR 15

30.05.2009 variable 1997 ITL 17,000

2009 various 1996/1997 JPY 3,100

2009 various 1997/1998 USD 18

06.01.2010 0.00% 1997 DEM 20

20.06.2010 0.00% 1997 DEM 60 1

18.10.2010 0.00% 1998 ITL 27,500

01.03.2010 0.00% 1995 ITL 30,000 1

2010 various 1997/1998 USD 109

2011 various 1993–1999 USD 74

04.06.2012 0.00% 1997 DEM 15

24.03.2012 various 1999 EUR 9

01.04.2012 variable 1998 ITL 12,000

30.04.2012 8.00% 1998 ITL 20,000 1

2012 various 1997/1998 USD 6

02.04.2013 variable 1998 ITL 27,500

2013 various 1998 JPY 13,600

20.12.2014 0.00% 1994 ITL 250,000 1

30.10.2014 0.00% 1995 USD 29

22.09.2016 variable 1998 USD 9

15.09.2017 0.00% 1997 DEM 15

15.05.2017 variable 1997 JPY 5,000

01.09.2017 0.00% 1997 PTE 1,700

16.02.2018 6.00% 1998 DEM 30 1

2018 variable 1997/1998 ITL 74,000

2018 various 1998 JPY 1,800

07.01.2020 variable 1996 CAD 162

19.09.2021 variable 1996 JPY 10,000

15.12.2021 0.00% 1995 USD 81 1

02.10.2022 0.00% 1997 DEM 40

86



27.02.2025 0.00% 1998 USD 20

14.12.2028 10.76% 1998 USD 133

perpetual various 1995 –1998 CHF 130 1

perpetual various 1998 DEM 610 1

perpetual 10.25% 1995 GBP 100 1

perpetual variable 1998 ITL 50,000 1

perpetual variable 1993–1995 JPY 20,000 1

perpetual various 1995 –1997 NLG 60,000 1

perpetual 0.00% 1998 PTE 1,650 1

perpetual variable 1992–1997 USD 220 1

Bank Leu Ltd., Zurich

17.11.2006 5.00% 1986 CHF 100 1

Guaranteed by Credit Suisse Group

DBV-Winterthur, Wiesbaden

28.07.2003 0.88% Convertible bonds 1998 DEM 100

28.07.2003 0.75% Convertible bonds 1998 DEM 100

1 subordinated bonds2 credit-linked notes issued by Credit Suisse First Boston Guernsey branch3 issued by Credit Suisse First Boston London branch4 issued by Credit Suisse First Boston Nassau branch5 issued by Credit Suisse First Boston New York branch6 this bond has been partially or fully transferred to Credit Suisse as a subparticipation7 issue of bonds with warrants: ex warrant

87



28 OTHER LIABILITIES

Negative replacement value of derivative instruments

– of which trading

– of which other

Compensation account

Other

TOTAL OTHER LIABILITIES

29 VALUATION ADJUSTMENTS ANDPROVISIONS/RESERVES FORGENERAL BANKING RISKS IN CHF M

Valuation adjustments and provisions for default risks (credit and country risk)

Valuation adjustments and provisions for other business risks

Provisions for taxes and deferred taxes

Provisions for restructuring

Other provisions

Total

Less valuation adjustments directlynetted with assets

TOTAL VALUATION ADJUSTMENTS ANDPROVISIONS AS PER BALANCE SHEET

RESERVES FOR GENERALBANKING RISKS

1 The increase in deferred tax assets (CHF 287) is not included in provisions for taxes and deferred taxes.2 change owing to deferred taxes on unrealised gains on investments from the insurance business

Change in %

–18

–18

70

–100

78

– 8

Change in CHF m

– 9,050

– 9,238

188

–189

4,812

– 4,427

31 Dec. 1999 in CHF m

41,632

41,175

457

0

10,945

52,577

31 Dec. 1998 in CHF m

50,682

50,413

269

189

6,133

57,004

Balance at31 Dec.

1998

13,834

878

2,996

483

787

18,978

–13,308

5,670

2,048

Newcreationchargedto equity

–

–

2,381

–

–

2,381

–

Newcreation

charged toincome

statement

1,012

211

1,436

47

151

2,857

80

Changein the

scope ofcon-

solidation

0

0

0

0

0

0

0

Recoveries,endangered

interest,currency

differences

921

88

418

19

32

1,478

0

Change indefinition of

purpose(reclassifi-

cation

118

–39

–2

32

– 85

24

3

Specificusage and

releases

–2,843

–189

– 977

–342

–309

– 4,660

0

Balance at31 Dec.

1999

13,042

949

6,252

239

576

21,058

–12,492

8,566

2,131

1 2

88


30 TECHNICAL PROVISIONS FORINSURANCE BUSINESS IN CHF M

NON-LIFE

Provision for unearned premiums

Actuarial provisions (health)

Provisions for claims outstanding

Actuarial provision for annuities

Provision for dividends to policyholders

TOTAL NON-LIFE

LIFE

Provisions for unearned premiums

Actuarial provisions

Provisions for claims outstanding

Participation fund

Bonuses left on deposit

TOTAL LIFE

Technical provisions in life business where the investment risk is borne by the policyholders

TOTAL TECHNICAL PROVISIONS FORINSURANCE BUSINESS

Change net

62

731

669

144

–28

1,578

65

6,655

6

304

231

7,261

2,070

10,909

Change gross

–313

671

–198

143

–27

276

75

6,190

–14

304

231

6,786

2,070

9,131

31 Dec. 1999net

3,598

3,103

14,710

832

798

23,041

850

70,078

394

2,822

3,652

77,796

6,724

107,561

31 Dec. 1999gross

4,204

3,103

17,300

839

799

26,245

879

70,607

399

2,824

3,652

78,361

6,724

111,329

31 Dec. 1998net

3,536

2,372

14,041

688

826

21,463

785

63,423

388

2,518

3,421

70,535

4,654

96,652

31 Dec. 1998gross

4,517

2,432

17,498

696

826

25,969

804

64,417

413

2,520

3,421

71,575

4,654

102,198

89



31 STATEMENT OF SHAREHOLDERS’ EQUITY

SHAREHOLDERS’ EQUITY AT BEGINNING OF FINANCIAL YEAR

Share capital

Capital reserve

Retained earnings

Revaluation reserves from insurance business

Reserves for general banking risks

Group profit

TOTAL SHAREHOLDERS’ EQUITY AT BEGINNING OF FINANCIAL YEAR

Reclassification from valuation adjustments and provisions

Release/creation of reserves for general banking risks, net

Dividends paid

Capital increases, par value and capital surplus

Capital increases, minority interests

Acquisition of minority interests

Changes in scope of consolidation affecting minority interests

Consolidation of previously not fully consolidated subsidiaries

Foreign exchange differences

Change in revaluation reserves from insurance business, net

Group profit

TOTAL SHAREHOLDERS’ EQUITY AT END OF FINANCIAL YEAR

Of which: share capital

capital reserve

minority interests in capital reserve

retained earnings

minority interests in retained earnings

revaluation reserves from insurance business

minority interests in insurance revaluation reserves

reserves for own shares

reserves for general banking risks

Group profit

– of which minority interests

32 LOANS TO THE BANK’S GOVERNING BODIES

Loans to the bank’s governing bodies

Loans to the bank’s governing bodies comprise advances to members of the Board of Directors, the Executive Board and the Statutory Auditors.

Change in %

1

18

–122

15

–29

435

10

– 97

109

2

–23

50

–

–

–

484

6

66

22

1

6

– 91

125

–18

17

–17

0

4

66

–20

Changein %

33

Changein CHF m

60

1,739

–1,932

872

– 842

2,614

2,511

– 87

1,010

27

–232

1

–1,014

226

–71

1,655

56

2,124

6,206

62

703

–196

2,748

–230

1,035

–123

0

83

2,124

–29

Changein CHF m

15

1999in CHF m

5,382

11,209

–352

6,660

2,048

3,215

28,162

3

80

–1,430

759

3

–1,015

226

–71

1,313

999

5,339

34,368

5,444

11,696

20

552

1,014

6,977

595

600

2,131

5,339

118


61

1998in CHF m

5,322

9,470

1,580

5,788

2,890

601

25,651

90

– 930

–1,457

991

2

–1

0

0

–342

943

3,215

28,162

5,382

10,993

216

–2,196

1,244

5,942

718

600

2,048

3,215

147


46

90


33 MATURITY STRUCTURE OFCURRENT ASSETS, FINANCIALINVESTMENTS AND BORROWED FUNDSAT 31 DECEMBER 1999 IN CHF M

CURRENT ASSETS


Money market claims

Due from banks


Due from customers

Mortgages

Securities and precious metalstrading portfolios

TOTAL CURRENT ASSETS

At 31 December 1998

TOTAL FINANCIAL INVESTMENTS 1

At 31 December 1998

BORROWED FUNDS


Due to banks


Due to customers, in savings andinvestment accounts


Medium-term notes


TOTAL BORROWED FUNDS

At 31 December 19981 excluding investments from insurance business

34 SECURITIES LENDING AND BORROWING AND REPURCHASE AGREEMENTS

Due from banks

Due from customers

SECURITIES LENDING

Due from banks

Due from customers

REVERSE REPURCHASE AGREEMENTS

Due to banks

Due to customers

SECURITIES BORROWING

Due to banks

Due to customers

REPURCHASE AGREEMENTS

Total

3,141

28,994

164,901

6,457

104,931

86,553

126,746

521,723

462,797

18,828

17,467

22,120

198,324

6,268

44,007

182,249

3,885

47,905

504,758

453,171

No maturity

2,054

1,783

Dueafter

5 years

–

0

2,593

0

6,340

1,115

–

10,048

7 ,842

1,208

1,932

0

4,812

0

46

3,731

97

20,636

29,322

21,079

Due within12 monthsto 5 years

–

10

2,120

0

8,788

32,102

–

43,020

43,121

6,937

3,361

1,410

2,009

0

17

6,323

2,128

17,957

29,844

35,890

Duewithin 3 to12 months

–

5,661

4,239

0

16,872

21,284

–

48,056

37,768

1,188

2,012

2,491

6,765

0

3

11,183

1,169

5,972

27,583

26,424

Duewithin 3months

–

23,312

145,507

0

50,868

12,334

–

232,021

210,564

1,300

3,813

18,219

99,041

0

8

102,803

491

2,660

223,222

220,851

Redeemableby notice

–

11

2,160

6,457

22,063

19,718

–

50,409

51,614

21

14

0

5,848

6,268

43,933

12,282

–

680

69,011

58,036

At sight

3,141

0

8,282

0

0

0

126,746

138,169

111,888

6,120

4,552

0

79,849

0

0

45,927

–

–

125,776

90,891

Change in %

–100

– 99

–100

193

53

152

– 85

– 95

– 89

63

60

61

Changein CHF m

–34,300

–11,687

– 45,987

84,596

9,670

94,266

–25,424

–14,883

– 40,307

24,274

12,561

36,835


49

136

185

128,536

27,932

156,468

4,327

709

5,036

63,093

33,641

96,734


34,349

11,823

46,172

43,940

18,262

62,202

29,751

15,592

45,343

38,819

21,080

59,899

91



35 BALANCE SHEET BY ORIGIN IN CHF M

ASSETS


Money market claims

Due from banks


Due from customers

Mortgages






Intangible assets


Other assets

TOTAL ASSETS



Due to banks




Medium-term notes



Other liabilities



Shareholders’ equity (excluding minority interests)

Minority interests

TOTAL LIABILITIES

Abroad Change

324

898

25,685

155

–3,003

22

26,622

1,599

9,365

661

738

2,193

–731

–5,489

59,039

7,378

24,867

443

–192

10,172

0

2,197

2,632

–7,151

2,606

6,110

4,835

–586

53,311

Switzerland Change

504

1,502

– 936

–1,180

4,751

5,973

–2,391

–238

5,541

–169

–272

–5

126

–1,936

11,270

7

19,409

–2,587

–2,419

– 6,484

–1,959

755

506

2,724

290

4,799

1,949

8

16,998

Abroad 31 Dec. 1998

249

23,884

136,793

4,125

77,638

11,836

91,029

13,525

53,131

725

2,084

751

8,006

44,232

468,008

14,186

130,130

2,880

4,295

120,227

0

33,102

8,564

48,802

2,656

49,098

11,641

2,269

427,850

Switzerland31 Dec. 1998

2,064

2,710

3,359

3,357

25,545

68,722

11,486

3,942

49,185

606

4,278

51

1,622

7,502

184,429

549

23,918

5,532

42,323

58,334

5,844

11,851

3,214

8,202

3,014

47,554

14,196

56

224,587

Abroad 31 Dec. 1999

573

24,782

162,478

4,280

74,635

11,858

117,651

15,124

62,496

1,386

2,822

2,944

7,275

38,743

527,047

21,564

154,997

3,323

4,103

130,399

0

35,299

11,196

41,651

5,262

55,208

16,476

1,683

481,161

Switzerland31 Dec. 1999

2,568

4,212

2,423

2,177

30,296

74,695

9,095

3,704

54,726

437

4,006

46

1,748

5,566

195,699

556

43,327

2,945

39,904

51,850

3,885

12,606

3,720

10,926

3,304

52,353

16,145

64

241,585

92


36 BALANCE SHEET BY CURRENCIESAT 31 DECEMBER 1999 IN CHF M

ASSETS


Money market claims

Due from banks


Due from customers

Mortgages






Intangible assets


Other assets

TOTAL ASSETS

At 31 December 1998



Due to banks




Medium-term notes



Other liabilities



Shareholders’ equity (excluding minority interests)

Minority interests

TOTAL LIABILITIES

At 31 December 1998

Total

3,141

28,994

164,901

6,457

104,931

86,553

126,746

18,828

117,222

1,823

6,828

2,990

9,023

44,309

722,746

652,437

22,120

198,324

6,268

44,007

182,249

3,885

47,905

14,916

52,577

8,566

107,561

32,621

1,747

722,746

652,437

Other currencies

743

13,256

67,112

3,621

17,768

4,506

60,261

6,257

58,673

417

710

317

2,769

23,082

259,492

261,971

6,290

80,117

3,273

130

44,376

0

14,184

2,393

23,125

3,093

52,420

9,298

1,418

240,117

238,339

US dollars

100

11,496

94,063

659

55,640

6,842

54,703

8,438

3,823

860

2,105

1,563

4,422

16,105

260,819

200,571

15,820

92,475

50

1

98,184

0

20,728

8,637

18,181

2,249

2,789

7,101

261

266,476

200,787

Swiss francs

2,298

4,242

3,726

2,177

31,523

75,205

11,782

4,133

54,726

546

4,013

1,110

1,832

5,122

202,435

189,895

10

25,732

2,945

43,876

39,689

3,885

12,993

3,886

11,271

3,224

52,352

16,222

68

216,153

213,311

93



37 PARTICIPATIONS AT 31 DECEMBER 1999Principal fully consolidated participationsCompany(% of equity capital held by the company exercising control) Domicile Capital in m Business unit

Credit Suisse Group Zurich

100.00 Credit Suisse Zurich CHF 3,114.7 CS/CSPB

100.00 Credit Suisse First Boston Zurich CHF 3,336.8 CSFB/CSAM

100.00 ‘Winterthur’ Swiss Insurance Company Winterthur CHF 193.7 Winterthur

98.63 Neue Aargauer Bank Aarau CHF 273.8 CS

50.00 Swisscard AECS AG Zurich CHF 0.1 CS

100.00 Bank Leu Ltd. Zurich CHF 200.0 CSPB

100.00 Bank Hofmann AG Zurich CHF 20.0 CSPB

88.03 Clariden Holding AG Zurich CHF 8.1 CSPB

100.00 Bank Leu (Luxembourg) SA Luxembourg CHF 25.0 CSPB

100.00 Credit Suisse Fides Zurich CHF 5.0 CSPB

100.00 Credit Suisse Trust AG Zurich CHF 5.0 CSPB

100.00 Credit Suisse Trust Holdings Ltd. St. Peter Port GBP 2.0 CSPB

66.67 IT Services AG Dübendorf CHF 2.4

100.00 Credit Suisse Group Finance (Guernsey) Ltd. Guernsey CHF ~

100.00 Credit Suisse First Boston Private Equity Zug CHF 0.1 CSFB

100.00 Merban Equity Zug CHF 0.1 CSFB

100.00 CSFB IGP Zug CHF 0.1 CSFB

100.00 CSFB RGP Zug CHF 0.1 CSFB

20.00 1 Credit Suisse First Boston International London USD 682.3 CSFB

88.05 Savoy Zurich CHF 7.5

100.00 Wincasa Winterthur CHF 1.5

100 Credit Suisse Zurich CHF 3,114.7 CS/CSPB

93 City Bank Zurich CHF 7.5 CS

100 Swiss Ship Mortgage Bank Basle CHF 15.0 CS

100 Credit Suisse Immobilien Leasing AG Zurich CHF 3.0 CS

90 Innoventure Capital AG Zurich CHF 10.0 CS

100 WECO Inkasso AG Zurich CHF 0.5 CS

51 Swiss NetPay AG Zurich CHF 0.5 CS

100 ABZ Finanz- und Beteiligungsgesellschaft AG Zug CHF 4.0 CS

100 Bank für Handel und Effekten Zurich CHF 30.0 CSPB

100 Credit Suisse (UK) Ltd. London GBP 16.5 CSPB

100 Credit Suisse (Guernsey) Ltd. St. Peter Port GBP 3.0 CSPB

100 Credit Suisse (Gibraltar) Ltd. Marina Bay GBP 5.0 CSPB

100 Credit Suisse (Bahamas) Ltd. Nassau USD 12.0 CSPB

87 Credit Suisse Hottinguer Paris EUR 52.9 CSPB

100 Credit Suisse (Deutschland) Aktiengesellschaft Frankfurt DEM 20.0 CSPB

100 Credit Suisse (Italy) S.p.A. Milan ITL 78,459.4 CSPB

100 Credit Suisse Gestion SGIIC SA Madrid EUR 2.4 CSPB

100 Credit Suisse Investment Consulting (Taiwan) Ltd. Taipei TWD 30.0 CSPB

100 Credit Suisse Investment Advisory (Hong Kong) Ltd. Hong Kong HKD 1.0 CSPB

100 Credit Suisse (Luxembourg) S.A. Luxembourg CHF 25.0 CSPB

100 Credit Suisse (Monaco) S.A.M. Monte Carlo EUR 9.9 CSPB

100 Credit Suisse Securities Ltd. London GBP 10.0 CSPB

100 Swiss American Corporation New York USD 38.9 CSPB

93 Swiss American Securities, Inc. New York USD 8.3 CSPB

100 Streetline Inc. New York USD 6.0 CSPB

1 80% held by Credit Suisse First Boston

94


Principal fully consolidated participations (continued)Company(% of equity capital held by the company exercising control) Domicile Capital in m Business unit

100 Credit Suisse First Boston Zurich CHF 3,336.8 CSFB/CSAM

100 1 Credit Suisse First Boston, Inc. New York USD 187.0 CSFB

100 Credit Suisse First Boston Corp. New York USD ~ CSFB

100 Credit Suisse First Boston Mortgage Capital LLC New York USD ~ CSFB

100 Credit Suisse First Boston Equitech, Inc. New York USD ~ CSFB

100 Merchant GB, Inc. New York USD ~ CSFB

100 Credit Suisse First Boston Management Corp. New York USD ~ CSFB

100 Banco de Investimentos Credit Suisse First Boston Garantia S.A. São Paulo BRL 164.8 CSFB

100 Credit Suisse First Boston Garantia Ltd. Nassau USD 16.9 CSFB

100 Credit Suisse First Boston Pacific Capital Markets Ltd. Sydney AUD 10.0 CSFB

100 Credit Suisse First Boston Australia Securities Ltd. Sydney AUD 28.4 CSFB

100 Credit Suisse First Boston Canada Toronto CAD 157.3 CSFB

100 Credit Suisse First Boston Aktiengesellschaft Frankfurt DEM 215.0 CSFB

99 Credit Suisse First Boston (Moscow) A/O Moscow USD 36.6 CSFB

100 Credit Suisse First Boston (Cyprus) Limited Limassol USD 887.5 CSFB

100 Finanz AG Zurich Zurich CHF 15.0 CSFB

80 2 Credit Suisse First Boston International London USD 682.3 CSFB

100 Credit Suisse First Boston (International) AG Zug USD 37.5 CSFB

100 Credit Suisse First Boston (Singapore) Ltd. Singapore SGD 109.3 CSFB

100 Credit Suisse First Boston (Hong Kong) Ltd. Hong Kong HKD 381.1 CSFB

100 Credit Suisse First Boston Australia Limited Sydney AUD 0.1 CSFB

100 Credit Suisse First Boston Securities (Japan) Ltd. Tokyo USD 150.0 CSFB

100 Credit Suisse First Boston (Europe) Ltd. London USD 27.3 CSFB

100 Credit Suisse First Boston Equities Ltd. London GBP 15.0 CSFB

100 Credit Suisse First Boston International (Guernsey) Ltd. St. Peter Port GBP 0.2 CSFB

100 Credit Suisse First Boston (Latin America) Holdings LLC Grand Cayman USD 29.6 CSFB

100 Credit Suisse First Boston Australia (Finance) Ltd. Melbourne AUD 10.0 CSFB

100 Credit Suisse First Boston Finance (Guernsey) Ltd. St. Peter Port USD 0.2 CSFB

100 Credit Suisse First Boston Finance B.V. Amsterdam NLG ~ CSFB

100 Credit Suisse First Boston Australia (Holdings) Ltd. Sydney AUD 0.4 CSFB

100 Credit Suisse Bond Fund Management Company SA Luxembourg CHF 0.3 CSFB

100 Credit Suisse Equity Fund Management Company SA Luxembourg CHF 0.3 CSFB

100 Credit Suisse Money Market Fund Management Company SA Luxembourg CHF 0.3 CSFB

100 Credit Suisse Portfolio Fund Management Company SA Luxembourg CHF 0.3 CSFB

100 Credit Suisse Asset Management Funds Zurich CHF 7.0 CSFB

100 Credit Suisse Trust & Banking Co. Ltd. Tokyo JPY 9,000.0 CSAM

100 Credit Suisse Asset Management Ltd. London GBP ~ CSAM

100 Credit Suisse Asset Management (Australia) Sydney AUD 0.3 CSAM

100 3 Credit Suisse Asset Management LLC New York USD ~ CSAM

100 Credit Suisse Asset Management (Deutschland) GmbH Frankfurt DEM 5.0 CSAM

100 Credit Suisse Asset Management (France) S.A. Paris FRF 164.8 CSAM

100 Credit Suisse Asset Management SIM S.p.A. Milan ITL 12,000.0 CSAM

1 49% of voting rights held by Credit Suisse Group

2 20% held by Credit Suisse Group

3 after merger of Credit Suisse Assets Management and Warburg Pincus Asset Management; 30% of voting rights held by Credit Suisse Group

95




100 ‘Winterthur’ Swiss Insurance Company Winterthur CHF 193.7 Winterthur

Switzerland

100 Winterthur Life Winterthur CHF 175.0 Winterthur

100 The Federal Zurich CHF 10.0 Winterthur

67 Winterthur Legal Assistance Winterthur CHF 9.0 Winterthur

100 Vitodurum Insurance Winterthur CHF 40.0 Winterthur

100 Swissline Wallisellen CHF 0.5 Winterthur

100 Winterthur International Winterthur CHF 1.0 Winterthur

100 Gartenhotel Winterthur CHF 2.5 Winterthur

Germany

100 Winterthur Beteiligungsgesellschaft m.b.H. Wiesbaden DEM 0.1 Winterthur

100 WINCOM Versicherungs-Holding AG Wiesbaden DEM 102.7 Winterthur

69 DBV-Winterthur Gruppe Wiesbaden DEM 170.4 Winterthur

Italy

100 Winterthur Holding Italia Milan ITL 260,000.0 Winterthur

100 Winterthur Assicurazioni Milan ITL 250,882.2 Winterthur

100 Winterthur Vita S.p.A. Milan ITL 95,000.0 Winterthur

Spain

100 Hispanowin S.A. Barcelona ESP 14,762.4 Winterthur

100 Winterthur Inmuebles 2 Barcelona ESP 9,297.0 Winterthur

100 Winterthur Seguros Generales Barcelona ESP 6,044.3 Winterthur

100 Winterthur Inmuebles Barcelona ESP 9,453.0 Winterthur

100 Winterthur Ibérica Barcelona ESP 4,423.5 Winterthur

80 Winterthur Asistencia Barcelona ESP 515.0 Winterthur

100 Winterthur Vida Española Barcelona ESP 5,819.0 Winterthur

100 WINVALOR Agencia de Valores Barcelona ESP 150.0 Winterthur

100 Winterthur Salud de Seguros Barcelona ESP 1,379.0 Winterthur

100 Winterthur Pensiones Barcelona ESP 970.0 Winterthur

Belgium

85 Winterthur-Europe Assurances Brussels BEF 8,000.0 Winterthur

100 Assurance Group Josi Brussels BEF 1,250.0 Winterthur

100 Assar Brussels BEF 70.0 Winterthur

99 Sofimmocentrale Brussels BEF 1,020.0 Winterthur

50 Touring Assurances Brussels BEF 1,125.0 Winterthur

51 Jean Verheyen Brussels BEF 5.0 Winterthur

Luxembourg

100 Winterthur-Europe Vie Luxembourg LUF 177.2 Winterthur

UK

100 Winterthur (UK) Holdings London GBP 42.6 Winterthur

100 Churchill Insurance Bromley GBP 60.0 Winterthur

93 Churchill Management Bromley GBP 2.6 Winterthur

100 Winterthur Life UK Holdings Basingstoke GBP ~ Winterthur

100 Winterthur Life UK Basingstoke GBP 26.4 Winterthur

100 Winterthur International London GBP 120.0 Winterthur

96



‘Winterthur’ Swiss Insurance Company (continued)

Austria

100 Winterthur Versicherungs-AG Vienna ATS 127.5 Winterthur

100 Winterthur Pensionskassen AG Vienna ATS 70.0 Winterthur

100 Wintisa Management und Consulting AG Vienna ATS 1.0 Winterthur

Portugal

100 Europeia Seguros Lisbon PTE 3,948.0 Winterthur

France

87 Rhodia Assurance Lyon FRF 60.0 Winterthur

Czech Republic

100 Bánsky a hutní penzijní fond a.s. Trinec CZK ~ Winterthur

68 Winterthur pojist’ouna a.s. Prague CZK 363.0 Winterthur

86 Winterthur penzijní fond a.s. Brno CZK 142.4 Winterthur

Hungary

65 Winterthur Erste Schweiz-Ungarische Kassenverwaltungs AG Budapest HUF 650.0 Winterthur

65 Winterthur Biztósitó Rt. Budapest HUF 1,000.0 Winterthur

Poland

86 Winterthur S.A. Warsaw PLN 40.0 Winterthur

93 Winterthur Zycie Warsaw PLN 60.0 Winterthur

70 Winterthur PTE Warsaw PLN 10.0 Winterthur

USA

100 Winterthur U.S. Holdings Wilmington, DE USD ~ Winterthur

100 Blue Ridge Simsbury, CT USD 3.6 Winterthur

100 General Casualty Sun Prairie, WI USD 3.0 Winterthur

100 Republic Financial Services Dallas, TX USD ~ Winterthur

100 Southern Guaranty Montgomery, AL USD 2.0 Winterthur

100 Unigard Bellevue, WA USD ~ Winterthur

Canada

100 Winterthur Canada Financial Toronto CAD ~ Winterthur

100 The Citadel General Toronto CAD 34.1 Winterthur

100 L’Unique Quebec CAD 7.0 Winterthur

Other countries

100 Winterthur Administrações São Paulo BRL 19.4 Winterthur

100 Winterthur Internacional São Paulo BRL 11.0 Winterthur

100 Winterthur International (SA) Johannesburg ZAR 1.0 Winterthur

100 Winterthur International Argentina S.A. Buenos Aires USD 0.5 Winterthur

100 Winterthur Holdings Australia Sydney AUD 54.2 Winterthur

100 Winterthur International Sydney AUD 20.0 Winterthur

97 Winterthur Insurance (Far East) Singapore SGD 25.0 Winterthur

100 Winterthur Swiss Insurance (Asia) Hong Kong HKD 176.6 Winterthur

100 Winterthur Insurance (Asia) Hong Kong HKD 150.0 Winterthur

100 Winterthur Insurance Services Hong Kong HKD 38.8 Winterthur

60 Winterthur Life Indonesia Jakarta IDR 44,500.0 Winterthur

91 Winterthur International Hamilton, Bermuda USD 2.4 Winterthur

96 Winterthur Overseas Hamilton, Bermuda USD 0.3 Winterthur

100 Windsor Parc Ltd. Hamilton, Bermuda USD 1.0 Winterthur

100 Winterthur Swiss Insurance (Macau) Macau HKD 20.0 Winterthur

áy

97



Principal participations at 31 December 1999 valued according to the equity methodEquity interest

Company Domicile Capital in m in %

Credit Suisse Group

Inreska Ltd. St. Peter Port GBP 3.0 100.0

Capital Union Dubai USD 30.0 25.0

Göhner Merkur AG Zurich CHF 80.0 33.2

Credit Suisse

Cornèr Bank AG Lugano CHF 12.0 27.3

Innoventure Equity Partners AG Zurich CHF 0.2 30.0

Swiss Euro Clearing Bank GmbH Frankfurt DEM 15.0 12.5

Credit Suisse First Boston

Valcambi SA Balerna CHF 12.0 100.0

Innovent Capital Ltd. Grand Cayman CHF 10.6 38.6

Swiss Euro Clearing Bank GmbH Frankfurt DEM 15.0 15.0

‘Winterthur’ Swiss Insurance Company

Norwich Winterthur Holdings Norwich GBP 54.5 48.5

Norwich Winterthur Reinsurance Corp. Norwich GBP 57.8 46.5

Commonwealth Insurance Grand Cayman USD 0.1 91.0

Auto-Bestandteil-Wiederverwertung AG Grolley CHF 0.2 50.0

Expertisa Columna Beratungen Winterthur CHF 0.2 100.0

IT Services AG Dübendorf CHF 2.4 33.3

Lehr- und Versuchswerkstätte Volketswil CHF 0.3 100.0

Technopark Immobilien Zurich CHF 40.0 25.0

Wincare Versicherungen Winterthur CHF 0.1 100.0

Winterthur Financial Services Winterthur CHF 0.5 100.0

Zürcher Freilager AG Zurich CHF 4.0 36.2

Winterthur Fund Management Co. Luxembourg LUF 5.0 100.0

Winterthur International Services Hamilton, Bermuda USD ~ 100.0

Zentrum Regensdorf Regensdorf CHF 4.5 50.0

98


Principal participations at 31 December 1999 valued at costEquity interest

Company Domicile Capital in m in %

Credit Suisse Group

BGP Banca di Gestione Patrimoniale SA (operational from February 2000) Lugano CHF 50.0 100.0

Fides Information Services Zurich CHF 1.0 67.0

Credit Suisse

Swiss Mortgage Bond Bank Zurich CHF 300.0 12.8

Swiss Steel AG Emmen CHF 137.7 30.7

Credit Suisse First Boston

Banco General de Negocios Buenos Aires ARS 163.0 24.1

Banco Comercial SA Montevideo UYU 215.9 19.9

Telekurs Holding AG Zurich CHF 45.0 17.4

Swiss Financial Services Group AG Zurich CHF 46.0 10.6

SNOC Swiss Nominee Company Zurich CHF 2.0 25.0

Euro-Clear Clearance System Ltd. London GBP 2.5 6.0

NCO Dealer Soc. Fin. Lisbon PTE 500.0 18.0

San Luis Financial and Investment Co. Ltd. Panama City PAB 0.5 12.1

North Bay Ltd. Nassau USD 8.0 100.0

SWIFT La Hulpe BEF 439.9 1.6

‘Winterthur’ Swiss Insurance Company

Winterthur Research SA Barcelona ESP 15.0 100.0

Winterthur-Service SA Barcelona ESP 25.0 100.0

Seguros ATLAS Mexico City MXN 50.0 30.0

Allgemeine Hypothekenbank AG Frankfurt DEM 170.0 10.0

99



Year-end rate used Average rate usedin the balance sheet at 31 Dec. in the income statement in

FOREIGN CURRENCY TRANSLATION RATES IN CHF 1999 1998 1999 1998

1 US dollar (USD) 1.598 1.375 1.490 1.430

1 euro (EUR) 1.606 1.610 1.580 1.610

1 British pound sterling (GBP) 2.587 2.290 2.400 2.370

1 Canadian dollar (CAD) 1.101 0.888 1.000 0.970

1 Singapore dollar (SGD) 0.959 0.824 0.880 0.860

1 Hong Kong dollar (HKD) 0.206 0.178 0.191 0.185

100 Deutsche marks (DEM) 82.098 82.330 81.000 81.600

100 Dutch guilders (NLG) 72.863 73.070 71.900 72.350

100 French francs (FRF) 24.479 24.550 24.150 24.300

100 Italian lire (ITL) 0.0829 0.0832 0.0820 0.0825

100 Japanese yen (JPY) 1.563 1.210 1.310 1.100

100 Spanish pesetas (ESP) 0.965 0.968 0.952 0.956

100


REPORT OF THE GROUP’S AUDITORS TO THE ANNUAL GENERAL MEETING OF CREDIT SUISSE GROUP, ZURICH

As auditors of the Group, we have audited the consolidated financial statements (income statement, balance sheet, statement of source

and application of funds and notes) of Credit Suisse Group for the year ended 31 December 1999.

These consolidated financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion

on these consolidated financial statements based on our audit. We confirm that we meet the legal requirements concerning professional

qualification and independence.

Our audit was conducted in accordance with auditing standards promulgated by the profession in Switzerland and with the

International Standards on Auditing issued by the International Federation of Accountants (IFAC), which require that an audit be planned

and performed to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

We have examined on a test basis evidence supporting the amounts and disclosures in the consolidated financial statements. We have

also assessed the accounting principles used, significant estimates made and the overall consolidated financial statement presentation. We

believe that our audit provides a reasonable basis for our opinion.

In our opinion, the consolidated financial statements give a true and fair view of the financial position, results of operations and the

source and application of funds based on the Swiss accounting rules for banks and the Swiss accounting and reporting recommendations

(ARR) for the insurance business of the Group, which are explained in the notes to the consolidated financial statements, and comply with

Swiss law. Furthermore, the consolidated financial statements comply with European Union directives (4th, 7th and directive for banks),

except for the deviations described in the notes to the consolidated financial statements.

We recommend that the consolidated financial statements submitted to you be approved.

KPMG Klynveld Peat Marwick Goerdeler SA

Brendan R. Nelson Peter Hanimann

Chartered Accountant Certified Accountant

Auditors in Charge

Zurich, 9 March 2000

101

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.credit-suisse Annual Report Part 2 Financial report 1999 / 2000

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