Credit Suisse — FY2022 Earnings Presentation
46 slides from Credit Suisse's earnings presentation, Feb 9, 2023
Slide 1: Net revenues per division in 4Q22
9% 32% Net revenues per division in 4022 on CHF basis
Slide 2: Media Release, Zurich, February 9, 2023
Investment Bank Investment Bank Swiss Bank Swiss Bank Asset Management Asset Management Media Release Zurich, February 9, 2023
Slide 3: 4Q22 and Full Year 2022 Results Analyst and Investor Call
4Q22 and Full Year 2022 Results Analyst and Investor Call Ulrich Körner Chief Executive Officer Dixit Joshi Chief Financial Officer February 9, 2023
Slide 4: Disclaimer (1/2)
Disclaimer (1/2) 2 Credit Suisse has not finalized restated historical information according to its new divisional structure and Credit Suisse’s independent registered public accounting firm has not reviewed such information. Accordingly, the preliminary information contained in this presentation is
Slide 5: Disclaimer (2/2)
Disclaimer (2/2) 3 Cautionary statements relating to interim financial information This document contains certain unaudited interim financial information for the first quarter of 2023. This information has been derived from management accounts, is preliminary in nature, does not reflect the complete
Slide 6: Disciplined strategic execution with accelerated de-risking and deleveraging
Disciplined strategic execution with accelerated de-risking and deleveraging 4 Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as well as important presentation and other i
Slide 7: 4Q22 net loss impacted by Investment Bank performance and lower client activity
4Q22 net loss impacted by Investment Bank performance and lower client activity 5 4Q22 net results analysis in CHF mn Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as wel
Slide 8: Strategic transformation into new Credit Suisse is well underway
Strategic transformation into new Credit Suisse is well underway 6 Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as well as important presentation and other information r
Slide 9: Driving strategic change at pace
Driving strategic change at pace Restructure the Investment Bank Securitized Products: Achieved ~2/3rd of targeted asset reduction since 3Q22, or USD ~35 bn reduction out of USD ~55 bn in total Non-Core Unit: Reduced RWA and leverage exposure by USD ~5 bn and USD ~15 bn1, respectively in 4Q22 throug
Slide 10: Substantial progress on deleveraging and de-risking Securitized Products and Non-Core Unit
Substantial progress on deleveraging and de-risking Securitized Products and Non-Core Unit 2/3rd of targeted reduction in Securitized Products Achieved USD ~35 bn SPG asset reduction since 3Q22, or ~2/3rd of targeted reduction First closing of the Apollo deal completed: recognition of full pre-tax g
Slide 11: Transformation to CS First Boston: creating significant value for shareholders
9 Transformation to CS First Boston: creating significant value for Credit Suisse shareholders Global independent, capital markets and advisory led business with distinctive capabilities and unique market position History of innovation and market leadership leveraging intellectual capital and years
Slide 12: CS First Boston's capabilities enhanced by acquisition of M. Klein & Company
CS First Boston’s capabilities enhanced by the acquisition of the investment banking business of M. Klein & Company Merger: USD 80 bn M. Klein & Company1 is a leading boutique investment bank and has advised on USD 1.5 trn of transactions since its formation in 2010 Trusted, independent advisor and
Slide 13: Significant progress on cost transformation already achieved in 4Q22
Significant progress on cost transformation already achievedin 4Q22 11 Group cost base targetsin CHF bn Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as well as important
Slide 14: Our roadmap to create the new Credit Suisse
Our roadmap to create the new Credit Suisse 12 Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as well as important presentation and other information relating to non-GAAP
Slide 15: Detailed Financials
Detailed Financials
Slide 16: Credit Suisse Group
14 Credit Suisse Group in CHF mn 4Q22 3Q22 4Q21 Δ 4Q21 2022 2021 Δ 2021 Rev. Net revenues 3,060 3,804 4,582 (33)% 14,921 22,696 (34)% Adjusted net revenues 2,964 3,798 4,384 (32)% 15,164 22,544 (33)% PCL/Costs Provision for credit losses 41 21 (20) 16 4,205 Adjusted provision for credit losses 41 21
Slide 17: Assets under management impacted by idiosyncratic events in October 2022
Assets under management impacted by idiosyncratic events in October 2022 15 Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as well as important presentation and other info
Slide 18: Wealth Management 4Q22 pre-tax loss driven by lower revenues and higher costs
Wealth Management 16 4Q22 pre-tax loss driven by lower revenues, mainly reflecting client asset outflows, and higher costs in CHF mn 4Q22 3Q22 4Q21 Δ 4Q21 2022 2021 Δ 2021 Revenues Net interest income 416 615 502 (17)% 2,103 2,110 - Recurring commissions and fees 360 382 432 (17)% 1,570 1,813 (13)%
Slide 19: Swiss Bank
Swiss Bank 17 Resilient 4Q22 negatively impacted by normalizing provisions and compensation expenses Adjusted net revenues down 10% vs. 4Q21 Net interest income down 11%; higher deposit income offset by decreased income from loans and lower SNB threshold benefits from the SNB increase of interest ra
Slide 20: Asset Management
Asset Management 18 Pre-tax income and NNA negatively affected by the challenging macro environment Adjusted net revenues down 28% vs. 4Q21 due to lower performance, transactions & placement revenues, reflecting substantially reduced placement fees and investment related losses, and lower management
Slide 21: Investment Bank
Investment Bank Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as well as important presentation and other information relating to non-GAAP financial measures, including r
Slide 22: CET1 ratio of 14.1%
CET1 ratio of 14.1% 20 CET1 ratio up ~150 bps to 14.1% CET1 ratio improved by 147 bps from the capital raises of CHF ~4.0 bn Negatively impacted by (53) bps from our net loss of CHF 1.4 bn, offset by RWA reductions of 80 bps Other movements of (24) bps include FX impacts of (9) bps and model and par
Slide 23: Tier 1 leverage ratio of 7.7%
Tier 1 leverage ratio of 7.7% 21 Tier 1 leverage ratio up to 7.7% Tier 1 leverage ratio improved by 47 bps from the capital raises of CHF ~4.0 bn HQLA impact from deposit outflows and business deleveraging increased the Tier 1 leverage ratio by 102 bps and 59 bps respectively, offset by (17) bps imp
Slide 24: Successful start to NCU's de-risking process
Successful start to NCU’s de-risking process 22 Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as well as important presentation and other information relating to non-GAAP
Slide 25: Decisive actions have rebuilt liquidity coverage ratio
Decisive actions have rebuilt liquidity coverage ratio from lower levels in the quarter 23 Liquidity coverage ratio1 average in % Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined
Slide 26: Deleveraging to significantly reduce funding needs
Deleveraging to significantly reduce funding needs 24 1 Issuance excludes contingent capital awards. Maturities and expected redemptions as of respective year-end FX rates. Figures for 2022 redemptions are based on December 31, 2021 FX rates, while 2023 onwards redemptions are based on September 30,
Slide 27: CHF ~0.9 bn additional group revenues by 2025 from higher forward rates
CHF ~0.9 bn additional group revenues by 2025 from higher forward rate expectations Sensitivity of Group revenues to interest rates1 Revenue impact from realization of forward rates2 pre-funding cost 25 CHF USD EUR Note: Results excluding certain items in our reported results are non-GAAP financial
Slide 28: Significant progress on our CHF ~2.5 bn cost transformation
Significant progress on our CHF ~2.5 bn cost transformation 26 Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as well as important presentation and other information relat
Slide 29: Group financial targets reaffirmed
Group financial targets reaffirmed 27 Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as well as important presentation and other information relating to non-GAAP financial
Slide 30: Appendix
CREDIT SUISSE WS
Slide 31: Corporate Center
Corporate Center 29 Corporate Center in CHF mn 4Q22 3Q22 4Q21 2022 2021 Revenues Treasury results 212 (7) (130) (204) (174) Asset Resolution Unit (5) (1) 17 55 (93) Other1 (21) 43 48 106 274 Adjusted net revenues 186 35 (65) (43) 7 PCL/ Costs Provision for credit losses - - - (1) (8) Adjusted total
Slide 32: We have a strong capital and liquidity position
We have a strong capital and liquidity position 30 4Q22 Liquidity coverage ratio – Peers2 Source: Company filings as of 4Q22 * As of 3Q22 Note: Peers include Bank of America, Barclays, BNP, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Société Générale and UBS 1 US peers
Slide 33: Capital exceeding regulatory requirements
Capital exceeding regulatory requirements 31 Total loss-absorbing capacityas of end-4Q22, in CHF bn 1 Effective from September 30, 2022, Pillar 1 CET1 requirements for capital and leverage ratios have been reduced by 0.36% and 0.125%, respectively, following FINMA’s reassessment of surcharges based
Slide 34: Switzerland share of Group gross loans
32 Switzerland share of Group gross loans – 4Q22 CHF 266 bn Switzerland Others Consumer finance Loans collateralized by securities Real estate Financial institutions Commercial and industrial loans Governments and public institutions Consumer2CHF 151 bn or 57% Corporate & institutional1 CHF 115 bn o
Slide 35: Oil & Gas / Leveraged Finance exposure
Oil & Gas / Leveraged Finance exposure 33 Oil & Gas exposure1 in USD bn 3.7 1 Oil & Gas net lending exposure in Corporate Bank 2 Represents non-Investment Grade underwriting exposure Leveraged Finance exposure2 in USD bn
Slide 36: TBVPS impacted by rights issue and net loss in the quarter
TBVPS impacted by rights issue and net loss in the quarter 34 Note: Results excluding certain items in our reported results are non-GAAP financial measures. See the appendix of this presentation for detailed information and defined terms as well as important presentation and other information relati
Slide 37: Wealth Management
Wealth Management 35 Adjusted net revenues in CHF mn Adjusted net margin in bps Adjusted pre-tax income in CHF mn Assets under Management in CHF bn Adjusted return on regulatory capital† Adjusted cost/income ratio 4Q22 3Q22 2Q22 1Q22 4Q21 4Q22 3Q22 2Q22 1Q22 4Q21 4Q22 3Q22 2Q22 1Q22 4Q21 4Q22 3Q22 2
Slide 38: Swiss Bank
Swiss Bank 36 Adjusted net revenues in CHF mn Adjusted net margin in bps Adjusted pre-tax income in CHF mn Assets under Management in CHF bn Adjusted return on regulatory capital† Adjusted cost/income ratio 4Q22 3Q22 2Q22 1Q22 4Q21 4Q22 3Q22 2Q22 1Q22 4Q21 4Q22 3Q22 2Q22 1Q22 4Q21 4Q22 3Q22 2Q22 1Q2
Slide 39: Asset Management
Asset Management 37 Adjusted net revenues in CHF mn Net new assets in CHF bn Adjusted pre-tax income in CHF mn Assets under Management in CHF bn Adjusted return on regulatory capital† Adjusted cost/income ratio 4Q22 3Q22 2Q22 1Q22 4Q21 4Q22 3Q22 2Q22 1Q22 4Q21 4Q22 3Q22 2Q22 1Q22 4Q21 4Q22 3Q22 2Q22
Slide 40: Investment Bank
Investment Bank 38 Adjusted Fixed Income sales & trading in USD mn Adjusted Capital markets in USD mn Adjusted Equity sales & trading1 in USD mn Adjusted Advisory and other fees in USD mn Adjusted pre-tax income in USD mn Adjusted return on regulatory capital† 4Q22 3Q22 2Q22 1Q22 4Q21 4Q22 3Q22 2Q22
Slide 41: Net and gross margins
Net and gross margins 39 Adjusted gross margin in bps 4Q22 3Q22 1Q22 4Q21 2Q22 4Q22 3Q22 1Q22 4Q21 2Q22 Average AuM in CHF bn Adjusted pre-tax income in CHF mn Adjusted net revenues in CHF mn 1,345 1,506 212 138 755 724 1,355 (155) 583 1,444 114 694 Wealth Management 4Q22 3Q22 1Q22 4Q21 2Q22 593 438
Slide 42: Currency mix & Group capital metrics
Currency mix & Group capital metrics 40 Adjusted Credit Suisse Group results Applying a +/- 10% movement on the average FX rates for 4Q22 LTM, the sensitivities are: USD/CHF impact on 4Q22 LTM pre-tax income by CHF (16) / 16 mn EUR/CHF impact on 4Q22 LTM pre-tax income by CHF +110 / (110) mn Sensiti
Slide 43: Reconciliation of adjustment items (1/2)
41 Results excluding certain items included in our reported results are non-GAAP financial measures. Following the reorganization implemented at the beginning of 2022, we have amended the presentation of our adjusted results. Management believes that such results provide a useful presentation of our
Slide 44: Reconciliation of adjustment items (2/2)
42 Results excluding certain items included in our reported results are non-GAAP financial measures. Following the reorganization implemented at the beginning of 2022, we have amended the presentation of our adjusted results. Management believes that such results provide a useful presentation of our
Slide 45: Notes
Notes 43 General notes Throughout this presentation rounding differences may occur Unless otherwise stated, all financial numbers presented and discussed are adjusted. Results excluding certain items included in our reported results are non-GAAP financial measures. All percentage changes and compara
Slide 46: Signatures
Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized. CREDIT SUISSE GROUP AG and CREDIT SUISSE AG (Registrants) Date: February 9, 2023 By: /s/ Ulrich Kör