credit-suisse quarterly review q3/2001

CREDIT SUISSE GROUP QUARTERLY REVIEW 2001

Q3

1 Editorial

2 Financial highlights Q3/2001

4 An overview of Credit Suisse Group

8 Review of business units 8 Credit Suisse Financial Services

16 Credit Suisse Private Banking18 Credit Suisse Asset Management 20 Credit Suisse First Boston

23 Consolidated results 23 Income statement24 Balance sheet25 Off-balance sheet business25 Selected notes

Information for investors

This symbol is used to indicate topics on which further information is available on our website. Go to www.credit-suisse.com/q3review2001/bookmarks.html to find links to the relevant information. The additional information indicated is openly accessible and does not form part of the Quarterly Review. Some areas of Credit Suisse Group’s websites are only available in English.

Cautionary Statement Regarding Forward-Looking InformationThis communication may contain projections or other forward-looking statements related to Credit Suisse Group that involverisks and uncertainties. Readers are cautioned that these statements are only projections and may differ materially from actualfuture results or events. Readers are referred to the documents filed by Credit Suisse Group with the SEC, specifically themost recent filing on Form 20-F, which identify important risk factors that could cause actual results to differ from those con-tained in the forward-looking statements, including, among other things, risks relating to market fluctuations and volatility, sig-nificant interest rate changes, credit exposures, cross border transactions and foreign exchange fluctuations, impaired liquidity,competition and legal liability. All forward-looking statements are based on information available to Credit Suisse Group on thedate of its posting and Credit Suisse Group assumes no obligation to update such statements unless otherwise required byapplicable law.

http://www.credit-suisse.com/en/q3review2001/bookmarks.html

EDITORIAL

Major challenges for the financial services industry

Lukas MühlemannChairman and Chief Executive Officer

Dear shareholders, clients andcolleagues

The third quarter of 2001 was over-shadowed by the tragic events ofSeptember 11 in the US. Our thoughtsare with all those who lost family, friendsor colleagues in the attacks. Despitethese events, we decided to go aheadwith our plans to list the Credit SuisseGroup share on the New York StockExchange (NYSE) as a sign of supportfor the Wall Street community and its determined efforts to carry on. Ourshare began trading in the form ofAmerican Depositary Shares (ADS) on September 25. This move willstrengthen Credit Suisse Group’sposition in the US capital market andenhance its visibility in the US market-place.

Credit Suisse Group faced majorchallenges in the third quarter of 2001,as did the entire industry. Demandingmarket conditions impacted our invest-ment banking business, as well as investment income from the insuranceunits. However, all other areas achievedgood results given the current environ-ment.

Our company’s fundamentals remain strong. Credit Suisse Groupcontinues building leadership positionsin key markets around the world, with a powerful global franchise. At the same time, we have implementedcomprehensive programs to adapt ourbusiness to the current environment,including significant cost reductionsacross all units.

In the third quarter of 2001, CreditSuisse Group posted a net operatingprofit of CHF 21 million. After takinginto account the amortization ofacquired intangible assets and good-will, the Group reported a net loss ofCHF 299 million. Net operating profit

for the first nine months amounted toCHF 3.4 billion, down 37% over thefirst nine months of 2000. Althoughnet new assets were down in the third quarter as a result ofseasonality, they were up 42% versusthe same period last year. Total assetsunder management stood at CHF1,290.4 billion as of September 30,2001, a reduction of 7.3% fromDecember 31, 2000, due to marketmovements.

In the Group’s insurance business-es, continued declines in equity marketsworldwide reduced the unrealized gains in the investment portfolios in the third quarter. Credit Suisse PrivateBanking continued to perform wellgiven market conditions, with net oper-ating profit of CHF 513 million in thethird quarter. At Credit Suisse FirstBoston, we initiated an extensive cost-reduction program to tailor the firm’ssize and cost structure to market con-ditions. This effort is expected to saveUSD 1 billion by the end of 2002, byreducing staffing levels by approximately2,000 jobs and cutting other operatingcosts.

For the fourth quarter, CreditSuisse Group remains cautious. Weexpect that transaction volumes will remain low and that weak market conditions will continue. Fundamentally,we remain optimistic about the medi-um- and long-term prospects for ourindustry and our position to capturethe resulting opportunities.

Lukas MühlemannChairman and Chief Executive OfficerNovember 2001

www.credit-suisse.com 1

CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q3/2001

Share dataShares issued Shares repurchased

Shares outstanding

Share price in CHF (as of November 13, 2001: CHF 66.10 )

Market capitalization in CHF m

Book value per share in CHF

Share priceHighLow

Calculation of earnings per share (EPS)Net profit in CHF mNet operating profit in CHF m 4)

Diluted net profit in CHF mDiluted net operating profit in CHF m 4)

Weighted average shares outstanding Dilutive impact 3)

Weighted average shares, diluted

Basic earnings per share in CHFBasic earnings per share – operating, in CHF 4)

Diluted earnings per share in CHFDiluted earnings per share – operating, in CHF 4)

1) Out of the total shares repurchased, 7,600,000 were cancelled on August 10, 2001, as previously approved by the Annual General Meeting. 2) Adjusted for weighted average shares repurchased. 3) From convertible bonds and outstanding options.4) Excl. amortization of acquired intangible assets and goodwill, net of tax.

Change vs.31 Dec. 2000

in %

0–

(1

(27

(27

(12

Change vs.2000in %

(22(39

Change in %9 months

2001/2000

(53(37 (53(37

911110

(57(42(58(43

30 Sept. 2001

1,196,253,5967,730,000

1,188,523,596

56.50

67,152

29.90

Q3/2001 in CHF

75.8844.80

Q3/2000

1,6051,6541,6051,655

2) 1,095,648,2523,248,177

1,098,896,429

1.471.511.461.51

)

)

)

)

))

))))

))))

9 months 2001

2,4173,3582,4183,359

1,195,915,06410,102,975

1,206,018,039

2.022.812.002.79

Q3/2001

(29921

(29922

1,189,924,9967,860,925

1,197,785,921

(0.250.02

(0.250.02

30 Sept. 2001

1,196,253,5967,730,000

1,188,523,596

56.50

67,152

29.90

Q3/2001 in CHF

75.8844.80

Q2/2001

) 1,2881,611

) 1,2891,611

2) 1,196,053,40010,834,360

1,206,887,760

) 1.081.35

) 1.071.33

31 Dec. 2000

1,201,751,9601) 0

1,201,751,960

77.00

92,535

34.08

2000in CHF

97.1373.25

9 months 2000

5,1955,3385,1975,340

2) 1,093,963,7684,781,646

1,098,745,414

4.754.884.734.86

30 June 2001

1,203,599,2888,400,000

1,195,199,288

73.88

88,295

35.76

Q2/2001in CHF

83.1372.25

Share performanceSwiss Market Index Credit Suisse Group

19971996 1998 1999 2000 2001

1009080

70

60

50

40

30

20

2

Market capitalizationas of end of reporting period (in CHF bn)

90

100

80

70

50

30

20

60

40

10

091 92 93 94 95 96 97 98 99 00 Q3/01

Financial calendar Investors’ Day Friday, December 7, 2001

Fourth quarter/full-year results 2001 Tuesday, March 12, 2002

First quarter results 2002 Wednesday, May 15, 2002


.

Consolidated income statementOperating incomeGross operating profitNet operating profit 1)

Net profitCash flow

Return on equity (ROE)Credit Suisse Group: – Reported ROE

– Operating ROE 1)

Banking business: – Reported ROE– Operating ROE 1)

Insurance business: – Reported ROE– Operating ROE 1)

– Return on invested capital (ROIC)

Consolidated balance sheetTotal assetsShareholders’ equityMinority interests in shareholders’ equity

BIS dataBIS risk-weighted assets BIS tier 1 capital

– of which non-cumulative perpetual preferred securitiesBIS total capital

BIS capital ratiosBIS tier 1 ratio – Credit Suisse

– Credit Suisse First Boston 2)

– Credit Suisse Group 3)

BIS total capital ratio – Credit Suisse Group

Assets under management/client assetsAdvisory assets under managementDiscretionary assets under managementTotal assets under managementClient assets

Net new assets

Number of employeesSwitzerland – banking

– insuranceOutside Switzerland – banking

– insuranceTotal employees Credit Suisse Group

1) Excl. amortization of acquired intangible assets and goodwill, net of tax. For details refer to the consolidated income statement.2) Ratio is based on a tier 1 capital of CHF 16.8 bn (Dec. 31, 2000: CHF 17.6 bn), of which non-cumulative

perpetual preferred securities is CHF 1.1 bn (for both periods).3) Ratio is based on a tier 1 capital of CHF 21.3 bn (Dec. 31, 2000: CHF 27.1 bn), of which non-cumulative

perpetual preferred securities is CHF 1.1 bn (for both periods).

Change in %9 months

2001/2000

17(15(37(53(11

Change in %9 months

2001/2000

(63(51(75(622729

(22

Change in %

2(13(16

Change in %

(1(21(2

(19

Change vs.31 Dec. 2000 in %

(9(6(7(7

Change in %9 months

2001/2000

34


6(7032

))))

))))

)

))

))))

))))

)

9 months2000

in CHF m

26,5998,9135,3385,1957,425

9 months 2000

in%

21.822.324.425.014.314.7 25.3

31 Dec. 2000in CHF m

987,43343,5222,571


239,46527,1111,102

43,565

31 Dec. 2000 in %

7.1 13.6 11.3 18.2

31 Dec. 2000in CHF bn

724.7667.3

1,392.02,065.0

9 months2000

in CHF bn

36.2

31 Dec. 2000

21,4546,781

30,66621,63780,538

Q3/2000in CHF m

8,6752,6961,6541,6052,306

Q3/2000in %

19.620.121.221.814.815.225.1

30 Sept. 2001in CHF bn

660.1630.3

1,290.41,928.3

Q3/2000in CHF bn

5.0

30 Sept. 2001

22,6946,289

30,66022,31581,958

9 months2001

in CHF m

30,9937,6063,3582,4176,582

9 months 2001in %

8.010.96.09.4

18.218.919.8

30 Sept. 2001in CHF m

1,006,06237,9372,167


237,34721,3251,078

35,216

30 Sept. 2001in %

7.112.59.0

14.8

30 June 2001in CHF bn

751.4700.7

1,452.12,178.9

9 months2001

in CHF bn

48.5

30 June 2001

22,3576,439

30,63623,35382,785

Q3/2001in CHF m

8,7201,490

21(299

1,373

Q3/2001in %

(3.00.2

(5.3(1.611.012.0 9.0

Q3/2001 in CHF bn

7.1

Q2/2001in CHF m

11,1823,0091,611

) 1,2882,674

Q2/2001in %

) 12.415.2

) 10.0) 13.1

26.026.829.3

Q2/2001 in CHF bn

16.7


AN OVERVIEW OF CREDIT SUISSE GROUP

Credit Suisse Group posted a net operating profit of CHF 21million and a net loss of CHF 299 million in the third quarter of 2001, as operations were impacted by negative marketdevelopments. Cost-reduction initiatives are underway in allbusinesses within the Group to address operating capacity giventhe current economic outlook. The Group’s asset gatheringactivities generated net new assets of CHF 7.1 billion. CreditSuisse First Boston maintained its strong market positionsacross its core businesses.

11 0917 984

3 107

483238

2 386

(22

1 773

298

1 475

1 428

1 726

Overview of business unit results

9 months 2001in CHF m

Operating incomeOperating expenses

Gross operating profit

Depreciation and write-offs on non-current assets 1)

Valuation adjustments, provisions and losses 2)

Profit before extraordinary items, taxes 1)

Extraordinary income/(expenses), net Taxes

Net operating profit before minority interests 1)

Amortization of acquired intangible assets and goodwill, net of tax

Net profit before minority interests

Minority interests

Net profit

Net operating profit 1)

Value added 3)

Average allocated capital Return on average allocated capital Return on average allocated capital (operating) 1)

Increased/(decreased) credit-related valuation adjustments 2)

1) Excl. amortization of acquired intangible assets and goodwill. 2) Increased/decreased valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.3) Value Added is a measure of value creation in the period under review. It is derived from Credit Suisse Group’s Value Based Analysis (VBA) and complements the per-

formance metrics which are currently used, but does not replace them. The measure is aimed at enhancing the management’s awareness of value creation. For thispurpose, accounting figures are adjusted by adding back accounting distortions such as selected non-cash charges (e.g. amortization of goodwill), and cost of equity ischarged to the business unit as well as the consolidated accounts.

4) For the Winterthur business units within Credit Suisse Financial Services, average invested capital is used for the calculation of return on invested capital (ROIC).

Credit SuisseGroup

) 30,993) 23,387

7,606

1,4871,303

) 4,816

28) (1,219

) 3,625

) 941

) 2,684

) (267

) 2,417

) 3,358

) 1,019

)

)

)

)

)

)

)

)

)

Adjustmentsincluding

CorporateCenter

(635(748

113

284237

(408

) 26) (56

(438

(6

(432

(176

(608

(614

) (788

CreditSuisse

FirstBoston

18,68316,233

2,450

658731

1,061

) (1) (162

898

817

81

0

81

898

(407

16,9520.6%7.1%

82

CreditSuisseAsset

Management

1,145886

259

230

236

(14) (39

183

67

116

) 0

116

183

111

1,251n/an/a

) –

CreditSuissePrivate

Banking

4,4112,040

2,371

4291

2,238

5) (494

1,749

12

1,737

) (15

1,722

1,734

1,548

4) 3,4064) n/a4) n/a

(4

CreditSuisse

FinancialServices

7,3894,976

2,413

480244

1,689

12(468

1,233

51

1,182

(76

1,106

1,157

555

10,89314.5%15.1%

16

4

Net new assetsCredit Suisse Financial ServicesCredit Suisse Private BankingCredit Suisse Asset Management 2)

Credit Suisse First Boston 3)

Credit Suisse Group

1) Certain restatements have been made to conform to the current presentation.2) Net new discretionary assets.3) Measured as the balance from accounts opened minus accounts closed.

Assets under management/client assets

Credit Suisse Financial ServicesAssets under management

– of which discretionaryClient assets

Credit Suisse Private BankingAssets under management


Credit Suisse Asset ManagementAssets under management


Credit Suisse First BostonAssets under management

– of which discretionary– of which Private Equity on behalf of clients

Client assets

Credit Suisse GroupAssets under management



(3.6(1.5(3.8

(3.94.4

(5.0

(10.8(11.7(10.8

(12.14.8

(15.0(6.1

(7.3(5.5(6.6

Change in %9 months

2001/2000

(3481

(52–

34

31 Dec. 2000in CHF bn 1)

273.8142.6289.6

456.4108.7495.6

487.2360.1487.2

174.655.931.9

792.6

1,392.0667.3

2,065.0

9 months2000

in CHF bn

7.014.115.10.0

36.2

30 June 2001in CHF bn

278.4147.5293.8

489.1122.5526.7

503.4372.4503.4

181.258.332.4

855.0

1,452.1700.7

2,178.9

9 months2001

in CHF bn

4.625.57.3

11.1

48.5


263.9140.4278.5

438.6113.5470.9

434.4317.8434.4

153.558.627.1

744.5

1,290.4630.3

1,928.3

Q3/2000 in CHF bn

) 1.33.20.50.0

5.0

Q2/2001 in CHF bn

(1.112.1

) 1.24.5

16.7

Q3/2001 in CHF bn

1.15.0

(0.71.7

7.1

)))

)

)

)))

)

))

)))

)

)

Credit Suisse Group reported a netoperating profit of CHF 21 million forthe third quarter, compared to CHF1.6 billion in the previous quarter andCHF 1.7 billion in the third quarter of2000. After taking into account theamortization of acquired intangible as-sets and goodwill, the Group reporteda net loss of CHF 299 million, versusa net profit of CHF 1.3 billion in thesecond quarter of 2001 and CHF 1.6 billion in the third quarter of lastyear. Factors affecting the Group’sresults were an operating loss atCredit Suisse First Boston, lowerprofits from the insurance business-es, a significant writedown on theGroup’s holding in Swiss Life, and

provisions for unsecured credit expo-sure to SAirGroup.

Net operating profit for the firstnine months amounted to CHF 3.4 bil-lion, down 37% over the first ninemonths of 2000, while net profit wasdown 53% to CHF 2.4 billion.Operating earnings per share for thefirst nine months decreased by 42%to CHF 2.81 from CHF 4.88 for thecorresponding period of 2000.Annualized operating return on equityfor the first nine months was 10.9%versus 22.3% in the same period oflast year.

As expected due to seasonality,net new assets in the third quartercame in lower at CHF 7.1 billion,

slightly less than half the figure for theprevious quarter, but up 42% versusthe same period of last year. For thefirst nine months, net new assetscontributed CHF 48.5 billion (CHF36.2 billion in the corresponding periodof 2000), or 3.5%, to the Group’sassets under management, whichstood at CHF 1,290.4 billion as ofSeptember 30, 2001, 11.1% lowerthan at June 30, 2001 (7.3% lowerthan at December 31, 2000) due tomarket movements. For the first ninemonths of 2001, Credit Suisse PrivateBanking contributed CHF 25.5 billion(CHF 5.0 billion in the third quarter),Credit Suisse Asset Management CHF7.3 billion (CHF –0.7 billion), Credit


AN OVERVIEW OF CREDIT SUISSE GROUP

Net operating profit contribution by business unit, first nine months 2001

CSFS

CSPB

CSAM

CSFB

Operating income composition, first nine months 2001

Balance sheet business

Commission and service fees

Trading

Insurance

Operating income contribution by business unit, first nine months 2001

CSFS

CSPB

CSAM

CSFB

44%

5%

29%22%

4%

14%

59%

23%

43%

16%15%

26%

6

Suisse Financial Services CHF 4.6billion (CHF 1.1 billion), and CreditSuisse First Boston CHF 11.1 billion(CHF 1.7 billion) to the Group’s netnew assets.

Credit Suisse Group’s third quarterresults include an unrealized loss ofCHF 400 million on its financial invest-ment in Swiss Life, which exceeds 5%of outstanding shares, under lower-of-cost-or-market accounting. Future in-creases or decreases in the Swiss Lifeshare price will impact the Group’sprofit and loss account. The Group hassubstantial unrealized gains on otherfinancial investments. Credit SuisseGroup also recognized provisions ofapproximately CHF 200 million on itsunsecured exposure to SAirGroup.

• At Credit Suisse Financial Services,net operating profit for the thirdquarter declined 49% versus thestrong third quarter 2000, to standat CHF 225 million. This decreasewas largely attributable to a lowerlevel of investment income from theinsurance businesses as continueddeclines in equity markets worldwidesignificantly reduced the unrealizedgains in their investment portfolios.Winterthur Life & Pensions in-creased its net operating profit by19% in the first nine months, whilenet operating profit at WinterthurInsurance dropped by 16% despitegood premium growth and soundunderwriting results. In the first ninemonths, Credit Suisse Bankingreported a 2% fall in net operatingprofit versus the corresponding peri-od of 2000, reflecting lower com-mission income from asset gatheringactivities. The operating cost/incomeratio increased to 68.2%. WithinCredit Suisse Personal Finance,operations were launched onschedule in Germany and Spain. As expected, continued investmentsresulted in a net operating loss ofCHF 90 million for the third quarter.

• Credit Suisse Private Bankingcontinued to perform well given themarket conditions and lower trans-action volumes. Net operating

profit for the third quarter was CHF513 million, down 11% quarter-on-quarter. Net operating profit inrelation to average assets undermanagement amounted to 44.2basis points, versus 48.3 basispoints in the previous quarter.

• Credit Suisse Asset Managementreported a net operating profit forthe third quarter of CHF 34 million,down 58% on the previous quarter.This was due to a reduction inassets, as well as to the reversal ofa tax benefit recognized in the firsthalf of the year. Over the first ninemonths of the year, assets undermanagement fell 10.8% to CHF434.4 billion. Net new businessgains for the same period addedCHF 7.3 billion to discretionary as-sets of CHF 317.8 billion, whichwere down 14.7% quarter-on-quarter.

• Credit Suisse First Boston reportedan operating loss for the third quar-ter of USD 123 million (CHF 204million), reflecting demanding market conditions, lower transac-tion volumes and the impact of the terrorist attacks on September11. Revenues for the third quarterwere down 17% on the secondquarter, while expenses dropped6%. This decrease was largely at-tributable to lower compensationcosts, which fell by 8%. As an-nounced earlier, the business unithas implemented an extensive pro-gram to tailor its business and coststructure to market conditions. Theinitiative is aimed at reducing oper-ating costs by USD 1 billion by theend of 2002.

Credit Suisse Group remains cautiousin its outlook for the fourth quarter.Transaction volumes are expected tostay at relatively low levels, and mar-kets will continue to be challenging. At the same time, the Group remainsoptimistic about its market position inall its businesses and expects to in-creasingly realize the benefits of itscost-reduction programs.

Commitment to maintaining a SwissairlineThe events related to SAirGroup, andthe commitment of the public andprivate sectors to maintaining aSwiss airline, have met with consid-erable interest and prompted oftenheated discussions both in Switzer-land and abroad. Credit SuisseGroup would like to explain its effortsand course of action concerning thisissue.

On October 1, 2001, UBS andCredit Suisse Group announced apackage of CHF 1.35 billion to sup-port efforts to build up a new Swissairline and maintain airline-relatedbusinesses. While the package re-mains subject to certain conditions,the banks were able to prevent thebankruptcy or the filing of a debtmoratorium by the entire SAirGroup,to the benefit of all creditors andstakeholders. This in turn preventedthe collapse of the entire company,including Crossair and the airline-related businesses, which wouldhave had dramatic implications forthe economy and for Zurich Airport,and would have resulted in tens ofthousands of job losses. In addition,UBS and Credit Suisse Groupagreed to voluntarily pay out the deposits of CHF 110 million held bySAirGroup employees in employeeaccounts with the company.

With this commitment, CreditSuisse Group has made a contribu-tion towards maintaining the globalposition of Switzerland – its domesticmarket – and thus acted in keepingwith the interests of its staff, clients,shareholders and other stakeholdersin Switzerland and abroad. This financial package is commercially prudent. In addition, the major bankshoped that their efforts would helpbuild confidence among further po-tential investors.

On Monday, October 22, 2001, it was announced that a broad-basedfinancing of the new airline wasessentially secured, subject to certainconditions, thanks to the combinedefforts of a large number of privatesector companies, individuals and the

public sector. This solution is a signof national solidarity and of collectivedetermination under extraordinarycircumstances. All of the investorshave stated that they are willing tohold their stake in the new airline forat least twelve months. In view of thecurrent uncertainty in the global air-line industry, the investors are awarethat there are risks associated withtheir commitment.

Following the planned capital increase for the new airline, CreditSuisse Group will hold a stake of approximately ten percent. CreditSuisse Group regards its commit-ment as a financial investment andwill not be involved in the operationalmanagement of the company.


REVIEW OF BUSINESS UNITS

Credit Suisse Financial Services

Thomas WellauerChief Executive Officer

8

Credit Suisse Financial Services re-ported a net operating profit of CHF1.2 billion for the first nine months of2001, down 17% on the correspondingperiod of the previous year. Net operat-ing profit for the third quarter declined49% versus the strong third quarter2000, to stand at CHF 225 million. Thisdecrease was largely attributable to alower level of investment income fromthe insurance units. Assets undermanagement decreased by CHF 14.5billion to CHF 263.9 billion in the thirdquarter as a result of the divestiture of

Winterthur International and marketconditions. Net new assets in the thirdquarter totaled CHF 1.1 billion.

The continuing negative market environ-ment impacted significantly on CreditSuisse Financial Services’ third quarterresults. Excluding Credit SuissePersonal Finance, which is investingheavily in pan-European expansion, net operating profit for the first ninemonths stood at CHF 1.4 billion,corresponding to an operating return onaverage allocated capital of 18.6%.

462 628

834

13186

617

(1168

450

436

4.645.3

Overview of business area Credit Suisse Financial Services9 months 2001in CHF m

Operating incomeOperating expenses





Extraordinary income/(expenses), netTaxes


Amortization of goodwill, net of tax


Minority interests

Net profit


Average allocated capital Return on average allocated capitalReturn on average allocated capital (operating) 2)


Assets under management in CHF bn– of which discretionary

Net new assets in CHF bnClient assets in CHF bn

1) Defined as premiums earned (net), less claims and annuities incurred and expenses for processing claims as well as provisions for future policy benefits, less commissions(net), plus investment income from insurance business; expenses from the handling of both claims and investments are allocated to revenue; personnel expenses WinterthurInsurance: CHF 313 m, Winterthur Life & Pensions: CHF 94 m; operating expenses Winterthur Insurance: CHF 141 m, Winterthur Life & Pensions: CHF 85 m.

2) Excl. amortization of goodwill.3) Increased/decreased valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.4) For Winterthur business units, average invested capital is used for calculation of return on invested capital (ROIC).

CreditSuisse

FinancialServices

7,3894,976

) 2,413

480244

) 1,689

12(468

) 1,233

51

) 1,182

(76

) 1,106

) 1,157

10,89314.5%15.1%

16

263.9140.4

4.6278.5

21

)

)

)

)

14

)

4)

4)

4)

1

CreditSuisse

PersonalFinance

32344

(312

281

(341

0) 55

(286

7

(293

) 0

(293

(286

26n/an/a

n/a

6.02.60.76.3

Credit Suisse

Banking

1) 2,8821) 1,8741) 1,008

91243

674

12) (167

519

6

513

) (1

512

518

4,39015.6%15.8%

16

122.62.51.3

136.9

Winterthur Life &

Pensions

1) 1,9381) 1,0551) 883

2580

625

0) (125

500

24

476

) (27

449

473

n/a

106.0106.0

2.6106.0

6,477 4)

19.8% 4)

20.6% 4)

WinterthurInsurance

2,5371,703

834

1030

731

0(231

500

14

486

(48

438

452

n/a

29.329.3n/a

29.3

rungseit

2000in %

103

17

–

Winterthur Insurance income statement (non-life business)

Gross premiums writtenReinsurance ceded

Net premiums writtenChange in provision for unearned premiums and in

provision for future policy benefits (health)

Net premiums earnedClaims and annuities incurred, netDividends to policyholders incurred, netOperating expenses, net (incl. commissions paid)

Underwriting result, net

Net investment incomeInterest received on deposits and bank accountsInterest paidOther income/(expenses) (incl. exchange rate differences) 1)




Amortization of goodwill


Minority interests

Net profit


1) Excl. amortization of goodwill.

9 months2000

in CHF m

12,793) (1,454

11,339

) (1,364

9,975) (7,691) (282) (2,936

) (934

1,72769

) (10275

835

0) (232

603

12

591

) (62

529

541

Change in %9 months

2001/2000

15) (6

18

) 58

12) 13) (7) 11

) 4

(1(52

) (10(32

(12–

) 0

(17

17

(18

) (23

(17

(16

Verände

Q1/

)

)

))))

)

)

)

)

)

)

9 months2001

in CHF m

14,727) (1,363

13,364

) (2,152

11,212) (8,672) (261) (3,254

) (975

1,71433

) (9251

731

0) (231

500

14

486

) (48

438

452

Q3/2000in CHF m

4,057) (461

3,596

) (174

3,422) (2,622) (94) (976

) (270

60123

) (34) 7

327

0) (88

239

4

235

) (26

209

213

Q2/2001in CHF m

4,339) (445

3,894

(7

3,887) (3,056) (71) (1,172

) (412

82517

) (41(14

375

0) (120

255

6

249

(38

211

217

Q3/2001in CHF m

3,614(317

3,297

411

3,708(2,817

(78(1,033

(220

3609

(2522

146

0(51

95

3

92

7

99

102

Winterthur Insurance key information(non-life business)

Combined ratio (excl. dividends to policyholders)

Claims ratio

Expense ratio

Assets under management in CHF bn

Technical provisions in CHF m

Number of employees

9 months2001

106.4%

77.4%

29.0%

30 June 2001

32.6

30,339

22,516

Q2/2001

108.8%

78.6%

30.2%

Q3/2000

105.1%

76.6%

28.5%

30 Sept. 2001

29.3

26,710

21,135

Q3/2001

103.8%

76.0%

27.8%

9 months2000

106.5%

77.1%

29.4%

31 Dec. 2000

32.5

26,653

21,796



19991999

Mio USD1999

Mio USD

464

3

Winterthur Life & Pensions income statement(life business)

Gross premiums writtenReinsurance ceded

Net premiums writtenChange in provision for unearned premiums

Net premiums earnedDeath and other benefits incurredChange in provision for future policyholder benefitsDividends to policyholders incurredOperating expenses, net (incl. commissions paid)Net investment incomeInterest received on deposits and bank accountsInterest on bonuses credited to policyholdersOther interest paidOther income/(expenses) (incl. exchange rate differences) 1)






Minority interests

Net profit



9 months2000

in CHF m

11,228) (203

11,025) 0

11,025) (7,059) (4,780) (1,753) (1,210

4,72266

) (87) (178) (236

510

0) (70

440

11

429

) (42

387

398

Change in %9 months

2001/2000

11) (27

12–

12) 27) (43) (58) 17

(51(6

) 14) (25) (77

23–

) 79

14

118

11

) (36

16

19

in

in

)

))

))

))

)

9 months2001

in CHF m

12,514) (149

12,365(10

12,355) (8,933) (2,746) (745) (1,416

2,33662

) (99) (134) (55

625

0) (125

500

24

476

) (27

449

473

Q3/2000in CHF m

2,667) (47

2,6200

2,620) (2,151) (716) (592) (454

1,57222

) (29) (60) (72

140

0) (17

123

4

119

) (14

105

109

Q3/2001in CHF m

3,138(91

3,0471

3,048(2,560

553(114(463(376

25(27(3511

62

04

66

10

56

(6

50

60

Q2/2001in CHF m

3,187) (7

3,1803

3,183) (2,687

(1,205) (228) (581) 1,919

24) (40) (62

(27

296

0(66

230

9

221

) (16

205

214

Winterthur Life & Pensions key information (life business)

Expense ratio 1)

Net return on average technical provisions 2)

Net new assets in CHF bn 3)

Assets under management in CHF bn 4)

Technical provisions in CHF m

Number of employees

1) Operating expenses/earned premiums.2) Net profit before minority interests/average technical provisions.3) Based on change in technical provisions for traditional business, adjusted for technical interests; net cash flow unit-linked business; and change in off-balance sheet

business such as funds.4) Based on savings-related provisions for policyholders plus off-balance sheet assets.

9 months2001

11.5%

45 bp

2.6

30 June 2001

109.4

108,926

7,276

Q3/2000

17.3%

15 bp

0.3

30 Sept. 2001

106.0

105,402

7,469

Q2/2001

18.3%

21 bp

) 0.6

Q3/2001

15.2%

6 bp

(0.1

9 months2000

11.0%

46 bp

1.9

31 Dec. 2000

104.7

105,522

6,562

10

Winterthur InsuranceWinterthur Insurance’s gross premiumvolume increased 15%, to CHF 14.7billion, compared with the first ninemonths of 2000. This increase is attributable to strong growth in the UK,as well as in other key markets. Grosspremiums were down by 17% quarter-on-quarter to CHF 3.6 billion, due tothe divestiture of Winterthur International

on July 1, 2001.The combined ratio improved mar-

ginally to 106.4%, versus the first ninemonths of 2000. The claims ratio roseby 0.3 percentage points year-on-year,to 77.4%. This reflects considerablyhigher claims for damages in NorthAmerica in the first half of the year. InEurope, however, an improved claimsratio was recorded over the first ninemonths, with progress achieved in Italy,the UK and also in Spain. Despitechanges in the product and channelmix, which resulted in higher acquisitionexpenses, the expense ratio improvedmodestly.

In the third quarter of 2001 thecombined ratio improved by five per-centage points over the previous quar-ter, to stand at 103.8%. In terms ofcosts, the first-time consolidation of thePearl business in the UK added a one-time positive effect, in addition to theaforementioned steady improvementachieved as a result of ongoing restructuring measures. In terms ofclaims, a large decrease in the level of claims incurred in Spain and NorthAmerica in the third quarter had a posi-tive impact. This was accompanied bya fall in costs per claim in the UK, aswell as in Italy and Spain. Withdrawalfrom the large corporate business as the result of the divestiture ofWinterthur International also had apositive impact on both the claims andthe combined ratios in the third quarter.

Despite the progress made withregard to the combined ratio, thirdquarter net operating profit was CHF102 million, down 53% quarter-on-quarter. This decrease is due to

markedly lower investment income as aresult of demanding market conditions, as well as to lower total investmentsfollowing the divestiture of WinterthurInternational.

Winterthur Life & PensionsWinterthur Life & Pensions reported a11% rise in premiums, to CHF 12.5billion, for the first nine months of theyear; premium growth for the thirdquarter stood at 18% compared to thecorresponding period of 2000. Themajor market units contributing to thisgrowth included Switzerland, the UKand Spain. At CHF 3.1 billion, premi-um volumes for the third quarter of2001 were down slightly on the previ-ous quarter.

In the first nine months, net operat-ing profit rose 19% to CHF 473 millionversus the previous year, reflectinggood operating results in Switzerland,Germany, the UK and the Netherlands.At 11.5%, the expense ratio for thefirst nine months was marginally abovethat of the corresponding period of theprevious year. Net new assets amount-ed to CHF 2.6 billion for the first ninemonths of the year, compared withCHF 1.9 billion for the first nine monthsof 2000.

Net operating profit of CHF 60million was reported for the third quar-ter, down 45% on the third quarter of2000. Investment income declinedsignificantly in the third quarter 2001.The majority of the decrease related tothe depreciation of unit-linked invest-ments, which did not impact on netoperating profit owing to a correspon-ding reduction in unit-linked provisions.

Winterthur Life & Pensionslaunched new unit-linked products inJapan and Hungary in the third quarterand made further progress in the implementation of a cross-border ITplatform.

Winterthur’s solvency Winterthur exceeded the local solvencyrequirements in all of the principle sub-sidiaries which are reviewed on a quar-terly basis. In addition, the reclassifica-tion of reported balance sheet positionsto EU-consistent standards indicates a140% coverage of consolidated EUsolvency requirements at the end ofSeptember. The recovery of equity valu-ations since September 30, 2001, hasfurther improved its solvency coverage.




Credit Suisse Banking income statement

Net interest incomeNet commission and service fee incomeNet trading incomeOther ordinary income

Operating income

Personnel expensesOther operating expenses

Operating expenses





Extraordinary income/(expenses), netTaxes 3)


Amortization of goodwill, net of tax


Minority interests

Net profit


Increased/(decreased) credit-related valuation adjustments Tax impact on amortization of goodwill

1) Excl. amortization of goodwill. 2) Increased/decreased valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.3) Excl. tax impact on amortization of goodwill.

Q3/2000in CHF m

6022758027

984

389228

617

367

13165

189

0) (42

147

3

144

) 0

144

147

(260

Change in %9 months

2001/2000

4(10(8

(46

(2

11(4

5

(13

133(46

1

(45) 4

(2

(33

(1

) 0

(1

(2

) ––

)))

)

)

)

)

)

)

)

)

)

)

9 months 2000

in CHF m

1,76887425737

2,936

1,123660

1,783

1,153

39448

666

22) (161

527

9

518

) (1

517

526

(920

9 months2001

in CHF m

1,84178423720

2,882

1,241633

1,874

1,008

91243

674

12) (167

519

6

513

(1

512

518

) 162

Q3/2001in CHF m

60924074(6

917

421192

613

304

3678

190

3(40

153

1

152

0

152

153

211

Q2/2001in CHF m

61826379

) 22

982

417229

646

336

2279

235

7) (63

179

2

177

(1

176

178

281

Credit Suisse BankingCredit Suisse Banking posted a netoperating profit of CHF 518 million forthe first nine months, down 2% on thecorresponding period of 2000. Netoperating profit for the third quarterstood at CHF 153 million, down 14%on the previous quarter but up 4% onlast year’s third quarter. Operating re-turn on average allocated capital was14.1% for the third quarter. The oper-ating cost/income ratio rose to 70.8%in the third quarter as a result of con-tinuing weak fee income partially offset

12

by cost-reduction measures. For thefirst nine months, the operatingcost/income ratio was 68.2%.

Net new assets for the third quar-ter amounted to CHF 1.2 billion. In thestrategically important funds business,net new asset growth as of September30, 2001, was over 10% on an annu-alized basis. For the first nine months,the net interest margin remained stableat 237 basis points and net interest in-come was up 4% over the first ninemonths of 2000. In addition, CreditSuisse Banking further improved the

risk structure of its credit portfolio. Inits leasing business, it reported a 10% increase in volumes since the start of the year.

The online portal www.credit-suisse.ch/investment waslaunched in July 2001. As part ofCredit Suisse’s multi-channel strategy,this service provides customers withvaluable support in the analysis andselection of products and services relating to investments and retirementplanning.


Credit Suisse Banking balance sheet information

Total assets

Due from customersMortgages

Due to customers in savings and investment depositsDue to customers, other


105,725

31,15265,903

32,03832,413


100,653

28,94064,616

33,32231,287

Credit Suisse Banking key information

Cost/income ratioCost/income ratio (operating) 1)

Return on average allocated capital Return on average allocated capital (operating) 1)

Average allocated capital in CHF m

Pre-tax margin Pre-tax margin (operating) 1)

Personnel expenses/operating income

Net interest margin

Loan growth

Net new assets in CHF bn

Deposit/loan ratio


Number of branches

Number of employees


9 months2000

62.4%62.1%

15.6%15.9%

4,416

23.1%23.4%

38.2%

238 bp

2.7%

3.4

31 Dec. 2000

69.1%

130.8

235

11,438

9 months2001

68.5%68.2%

15.6%15.8%

4,390

23.5%23.8%

43.1%

237 bp

3.8%

1.3

30 June 2001

68.7%

130.3

232

11,842

Q3/2000

64.3%64.0%

13.4%13.7%

4,292

18.9%19.2%

39.5%

241 bp

1.2%

) 0.6

30 Sept. 2001

66.4%

122.6

228

12,061

Q2/2001

68.3%68.0%

16.5%16.7%

4,289

24.3%24.6%

42.5%

238 bp

) 2.3%

(2.0

Q3/2001

71.0%70.8%

14.0%14.1%

4,353

20.8%21.0%

45.9%

231 bp

(0.6%

1.2



(27

–

5034

46

24

74(32

33

29

34

285

25

200

25

34 58

59

Credit Suisse Personal Finance income statement


Operating income


Operating expenses



Valuation adjustments, provisions and losses






Minority interests

Net profit



Q3/2000in CHF m

2133

) 1

19

2626

52

) (33

40

) (37

07

) (30

1

) (31

0

) (31

) (30

Change in %9 months

2001/2000

0(31(33

–

(40

130140

136

) 235

367–

) 244

–150

) 271

75

) 262

–

) 262

) 271

))

)

)

9 months2000

in CHF m

7396

) 1

53

6680

146

) (93

60

) (99

022

) (77

4

) (81

0

) (81

) (77

9 months 2001

in CHF m

7274

(6

32

152192

344

) (312

281

) (341

055

) (286

7

) (293

0

) (293

) (286

Q3/2001in CHF m

071

(5

3

6044

104

(101

170

(118

127

(90

4

(94

0

(94

(90

Q2/2001in CHF m

491

) (1

13

4378

121

) (108

51

) (114

09

) (105

2

) (107

0

) (107

) (105

Credit Suisse Personal FinanceThe third quarter saw the launch ofCredit Suisse Personal Finance’s offer-ings in Germany and Spain. Theacquisition of the Spanish broker andasset manager General de Valores yCambios was completed in mid-August and its integration is underway.At end-September, Credit SuissePersonal Finance had a total of 568 financial advisors and its number of investment centers has risen to 19, including those in Berlin, Munich andMadrid. Credit Suisse PersonalFinance’s network comprises 76 salesoffices. Investments in further expan-sion and lower revenues resulted, as

14

anticipated, in a net operating loss ofCHF 90 million in the third quarter.

The performance of Credit SuissePersonal Finance in Italy reflected the continuing weak market environ-ment. Assets under managementstood at CHF 4.5 billion at the end ofSeptember, compared with CHF 5.1billion at end-June. Net new assetsamounted to CHF 0.1 billion for thethird quarter, compared with CHF 0.2 billion in the previous quarter.Revenues were 48% lower than in the previous quarter, at CHF 4 million,owing to a marked decrease in com-mission and service fee income due to market conditions and seasonal

factors. Operating income for the firstnine months of 2001 stood at CHF20 million, the same level as for thecorresponding period of the previousyear.

Credit Suisse is fully committed to the Personal Finance concept foraffluent wealth management andbelieves it offers a long-term opportu-nity to leverage its brand, products and capabilities. Credit Suisse PersonalFinance has decided not to pursue itslaunch in the UK for the time being inview of the more challenging economicenvironment.




Credit Suisse Personal Finance key information

Personal FinanceGrowth in assets under management

– of which net new assets – of which market movement and structural effects– of which acquisition

youtradeNumber of transactions (in ’000s)

Credit Suisse Personal FinanceAverage allocated capital in CHF m

Personal FinanceAssets under management in CHF bnNumber of clientsNumber of advisors

youtradeAssets under management in CHF bnNumber of clients

Credit Suisse Personal FinanceNumber of employees

9 months2000

38.0%41.6%

) (3.6%–

340

n/a

31 Dec. 2000

4.817,898

331

0.925,228

764

)

9 months 2001

9.8%12.6%

) (21.4%18.6%

250

26

30 June 2001

5.120,097

407

1.028,656

1,011

Q3/2000

5.7%7.9%

(2.2%–

106

n/a

30 Sept. 2001

5.329,240

568

0.727,520

1,013

Q2/2001

4.3%3.5%

) 0.8%–

81

29

Q3/2001

3.9%1.7%

(15.4%17.6%

61

20



Credit Suisse Private Banking

Oswald J. GrübelChief Executive Officer

16

Credit Suisse Private Banking posteda net operating profit of CHF 513 mil-lion in the third quarter of 2001, in aweak market context. This was a de-crease of 11% on the previous quarterand represented a decrease of 15%on a year-to-date basis versus the firstnine months of 2000. Assets undermanagement declined 10.3% in thethird quarter, while net new assets ofCHF 5.0 billion were recorded for thesame period.

At the end of the third quarter, CreditSuisse Private Banking reportedassets under management of CHF438.6 billion, down 10.3% on the

previous quarter and down 3.9% versus end-2000. This decline wasprimarily attributable to the marked deterioration in equity markets and theweakness of the US dollar. Net newassets amounted to CHF 5.0 billion forthe third quarter, representing 1.0% oftotal assets under management. CreditSuisse Private Banking reported CHF25.5 billion in net new assets for thefirst nine months of the year, repre-senting 5.6% of total assets undermanagement. In the third quarter, operating income fell 14% comparedwith the third quarter of 2000 and11% versus the previous quarter onthe back of significantly lower transac-

Credit Suisse Private Banking income statement

12


Operating income


Operating expenses









Minority interests

Net profit



1) Excl. amortization of goodwill.2) Increased/decreased valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.

Q3/2000in CHF m

3061,050

175) 22

1,553

437215

652

901

1740

844

2) (194

652

2

650

) (6

644

646

(10

Q2/2001in CHF m

2981,058

152(6

1,502

438268

706

796

1543

738

2) (160

580

5

575

) (4

571

576

) 0

Q3/2001in CHF m

26191912327

1,330

430231

661

669

166

647

2(132

517

4

513

(4

509

513

(5

Change in %9 months

2001/2000

(5(6

(2751

(7

(122

7

(17

14(37

(16

) –) (18

(15

100

(15

) (29

(15

(15

) (88

)))

)

)

)

)

)

)

)

)

)

)

)

)

9 months2000

in CHF m

9183,178

59667

4,759

1,311602

1,913

2,846

37144

2,665

(7) (605

2,053

6

2,047

) (21

2,026

2,032

) (32

9 months 2001

in CHF m

8733,001

436101

4,411

1,304736

2,040

2,371

4291

2,238

5) (494

1,749

12

1,737

) (15

1,722

1,734

) (4


tion volumes and the weak US dollar.Considering the general adverse mar-ket conditions and the seasonal weak-ness in the third quarter, private bank-ing continued to perform well.

Reduction in personnel and otheroperating expensesIn the third quarter, costs fell 6% toCHF 661 million compared with theprevious quarter. Personnel and otheroperating expenses were down de-spite an increase in headcount. In thethird quarter, Credit Suisse PrivateBanking invested primarily in onshoremarkets in Europe and Asia, as well asin staff training, technological improve-

ments and measures aimed at in-creasing efficiency in customer rela-tionship management. The annualizednet operating margin was 49.4 basispoints for the first nine months, and at the end of the same period, theoperating cost/income ratio stood at47.2%.

Expansion of family office segmentIn the third quarter, Credit SuissePrivate Banking expanded its familyoffice segment with the announcedacquisition of Frye-Louis CapitalManagement, Inc. in Chicago,which offers comprehensive financialplanning and investment management

services to very wealthy families andultra-high-net-worth individuals. Thisacquisition will enable Credit SuissePrivate Banking to further expand itsposition in the segment for verywealthy private clients. Frye-LouisCapital Management, Inc. managesassets of approximately CHF 2.5 billion and targets US clients with assets of more than CHF 50 million.The acquisition of Frye-Louis formspart of Credit Suisse Private Banking’sstrategy to achieve further expansionin the high-potential family office segment via growth and acquisitions.

Credit Suisse Private Banking balance sheet information

Total assets

Due from customers– of which secured by mortgages– of which secured by other collateral

Credit Suisse Private Banking key information

Cost/income ratioCost/income ratio (operating) 1)



Fee income/operating income

Growth in assets under management– of which net new assets – of which market movement and structural effects– of which acquisition

Net profit before minority interests/average AuMNet operating profit before minority interests/average AuM 1)


Number of employees



101,153

33,7179,206

22,621

9 months2000

41.1%41.0%

3,118

55.7%55.9%

66.8%

) 6.2%3.1%

) 3.1%–

58.2 bp58.4 bp

31 Dec. 2000

456.4

8,665


113,291

35,95910,20923,368

9 months2001

47.5%47.2%

3,406

50.6%50.9%

68.0%

(3.9%5.6%

(10.3%0.8%

49.1 bp49.4 bp

30 June 2001

489.1

9,173

Q3/2000

43.2%43.1%

3,209

54.3%54.5%

67.6%

2.8%0.7%2.1%

–

55.0 bp55.2 bp

30 Sept. 2001

438.6

9,338

Q2/2001

48.3%48.0%

3,541

48.9%49.3%

70.4%

) 5.5%2.6%

) 2.9%–

47.9 bp48.3 bp

Q3/2001

51.2%50.9%

3,537

48.5%48.8%

69.1%

(10.3%1.0%

(11.3%–

43.9 bp44.2 bp




Credit Suisse Asset Management

Phillip M. ColebatchChief Executive Officer

18

Credit Suisse Asset Management re-ported a net operating profit of CHF183 million for the first nine months of2001, down 23% on the same periodof 2000, reflecting the deterioration inmarket conditions during the year. Netoperating profit for the third quarterwas CHF 34 million, down 58% on theprevious quarter.

For the first nine months of the year,assets under management declined10.8% to CHF 434.4 billion from

CHF 487.2 billion as of December31, 2000. Of this, discretionary assets under management dropped by CHF 42.3 billion, to CHF 317.8billion. The decrease was due tonegative market movements of CHF45.0 billion. A weak US dollar againstthe Swiss franc at the end ofSeptember contributed to a furtherCHF 4.6 billion in foreign exchange-related differences. Net new businessadded CHF 7.3 billion to discretionaryassets.

Credit Suisse Asset Management income statement 1)

Management and advisory feesNet mutual fund feesOther revenues 2)

Operating income 2)

Personnel expenses 3)

Other operating expenses

Operating expenses 3)

Gross operating profit 2) 3)


Valuation adjustments, provisions and losses

Profit before extraordinary items, acquisition impact, taxes


Net operating profit before acquisition impact, minority interests

Acquisition interest, net of tax Amortization of retention payments, net of tax Amortization of acquired intangible assets and goodwill, net of tax


Minority interests

Net profit


Acquisition interestAmortization of retention paymentsAmortization of acquired intangible assets and goodwillTax impact on acquisition impact

1) Certain reclassifications have been made to prior-period amounts to conform to the current presentation.2) Excl. acquisition interest.3) Excl. amortization of retention payments.4) Excl. amortization of acquired intangible assets and goodwill.

Q3/2000in CHF m

2988324

405

160123

283

122

80

114

0) (17

97

110

12

74

0

74

86

110

120

Change in %9 months

2001/2000

(32034

3

111

6

(5

28–

(7

–) (30

(7

62–

97

(43

–

(43

(23

)

)

)

)

)

)

)

)

9 months 2000

in CHF m

87123550

1,156

468348

816

340

180

322

) 0) (56

266

290

34

203

0

203

237

290

340

9 months2001

in CHF m

84428167

1,192

518350

868

324

230

301

(14) (39

248

471867

116

0

116

183

4718670

Q3/2001in CHF m

2678117

365

146115

261

104

80

96

(13(24

59

141122

12

0

12

34

1411220

Q2/2001in CHF m

28611029

425

197122

319

106

80

98

) 0) (2

96

87

26

55

0

55

81

87

260

Credit Suisse Asset Management key information

Cost/income ratio 1) 2)

Cost/income ratio (operating) 1) 2) 3)


Pre-tax marginPre-tax margin (operating) 3)

Pre-tax margin (operating, excl. amortization of retention payments) 2) 3)

Personnel expenses/operating income 1) 2)

Growth in assets under management

Growth in discretionary assets under management– of which net new assets– of which market movement and structural effects

Net profit before minority interests/average AuMNet operating profit before minority interests/average AuM 3)

Assets under management in CHF bnDiscretionary funds in CHF bn Advisory assets in CHF bn Mutual funds distributed in CHF bn

Number of employees

1) Excl. acquisition interest.2) Excl. amortization of retention payments.3) Excl. amortization of acquired intangible assets and goodwill.

9 months2000

75.1%72.1%

1,099

22.4%25.3%25.3%

40.5%

) 7.3%

) 5.8%4.7%

) 1.1%

6.1 bp7.1 bp

31 Dec. 2000

487.2360.1127.1136.9

2,350

9 months2001

80.4%74.7%

1,251

13.0%18.6%20.1%

43.5%

(10.8%

(11.7%2.0%

(13.7%

3.2 bp5.1 bp

30 June 2001

503.4372.4131.0138.3

2,362

Q3/2000

74.8%71.9%

1,144

22.5%25.4%25.4%

39.5%

2.8%

2.7%0.1%2.6%

6.6 bp7.7 bp

30 Sept. 2001

434.4317.8116.6119.2

2,355

Q2/2001

83.1%76.9%

1,250

13.4%19.5%21.2%

46.4%

) 3.7%

) 4.4%) 0.3%) 4.1%

4.4 bp6.5 bp

Q3/2001

79.7%73.7%

1,171

9.9%15.9%18.9%

40.0%

(13.7%

(14.7%(0.2%

(14.5%

1.1 bp2.9 bp

At CHF 1.2 billion, revenues during the first nine months were 3%higher than in the corresponding periodof 2000. The figures for 2000 do notinclude DLJ’s Asset ManagementGroup, which was acquired inNovember 2000. Adjusting for this,revenues would be down approximately8%. Third quarter revenues were 14%lower than in the previous quarter dueto market movements, particularly inSeptember. Operating expenses forthe first nine months were 6% higherthan last year, due to the DLJ acquisi-tion. Adjusting for this effect, operatingexpenses would have fallen 5%.

For the third quarter of 2001, profitbefore extraordinary items, acquisitionimpact and taxes was CHF 96 million,which was flat compared to the sec-ond quarter. However, third quarter

results were down versus the secondquarter owing to extraordinary expensesand a high tax charge resulting fromthe reversal of a tax benefit recognizedin the first half of the year.

Looking ahead to the realignment ofbusiness units in 2002, Credit SuisseAsset Management made a strategicdecision to withdraw from the US directretail business and focus on building dis-tribution with fee-based advice channels.These channels are more compatiblewith Credit Suisse Asset Management’srisk-controlled investment style, and thedecision reflects the current trend ofcustomers looking for advisory servicesin an uncertain market.

Expansion of real estate portfolioIn Switzerland and Germany, CreditSuisse Asset Management continues

to expand its real estate business, anasset class that has enjoyed stronginvestment performance during 2001.The third quarter saw the conclusion of an agreement to acquire CHF 1.2billion in real estate from the NovartisPension Fund. In turn, Novartis willpurchase an equal amount of certifi-cates in Credit Suisse Asset Manage-ment’s various real estate mutualfunds in Switzerland.



Credit Suisse First Boston

John J. MackChief Executive Officer

Credit Suisse First Boston posted anet operating profit of USD 534million (CHF 898 million) for the firstnine months and a net operating lossof USD 123 million (CHF 204 million)for the third quarter. This result re-

20

flects challenging market conditions throughout the industry, which were exacerbated by the terrorist attacksof September 11. Revenues for thethird quarter were down 17% on thesecond quarter to USD 3.3 billion(CHF 5.5 billion), with the largest de-creases in the Equity and InvestmentBanking divisions.

Weakness in the global economy hasled to dramatically lower equity andmerger and acquisition volumes andmargins. In this current market environ-ment, the third quarter was the indus-

try’s weakest this year. In the first ninemonths of 2001, the value of equity-related and mergers and acquisition(M&A) transactions fell industry-wideby 30% and 50%, respectively, on thesame period in 2000.

The Fixed Income division’s thirdquarter revenues increased 7% versusthe second quarter to USD 1.6 billion(CHF 2.7 billion). The developed markets rates business had a recordquarter. These gains were partially offset by decreases both in the invest-ment grade and high yield markets in the developed markets credit

Credit Suisse First Boston income statement in USD 1) 2)

Fixed IncomeEquityInvestment BankingFinancial Services GroupOther 3)

Operating income 3)












Minority interests

Net profit




)

)

)

)

Q3/2000in USD m

6401,127

7500

80

2,597

1,659488

2,147

450

8342

325

0) (76

249

00

14

235

(2

233

247

) (400

140

Q2/2001in USD m

1,5261,215

77137072

3,954

2,278830

3,108

846

131176

539

0) (133

406

7576

160

) 95

0

) 95

) 255

(15116118197120

Q3/2001in USD m

1,62766659634433

3,266

2,102819

2,921

345

130203

12

0(2

10

6469

166

(289

0

(289

(123

4997

106205109

Change in %Q3/Q2

2001

7(45(23(7

(54

(17

(8(1

(6

(59

(115

(98

–) (98

(98

(15(94

–

) –

–

–

)

9 months2000

in USD m

2,2014,0742,228

0(2

8,501

5,1891,379

6,568

1,933

259227

1,447

) 0) (410

1,037

00

41

996

(2

994

1,035

(1300

410

9 months 2001

in USD m

4,773) 3,195) 2,190) 1,156) 167

) 11,481

) 6,922) 2,399

) 9,321

) 2,160

) 391435

) 1,334

(1) (342

) 991

) 235) 222

486

48

0

48

534

49361342600360

Credit Suisse First Boston income statement in CHF 1) 2)

Fixed IncomeEquityInvestment BankingFinancial Services GroupOther 3)

Operating income 3)












Minority interests

Net profit




1) The business unit income statement differs from the Group’s legal accounts in presenting brokerage, execution and clearing expenses as part of operating expenses incommon with US competitors, rather than netted against revenues.

2) Certain reclassifications have been made to prior-period amounts to conform to the current presentation.3) Excl. acquisition interest.4) Excl. amortization of retention payments.5) Excl. amortization of acquired intangible assets and goodwill.6) Increased/decreased valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.7) Excl. tax impact on acquisition impact.

Q3/2000in CHF m

1,0881,9181,269

0128

4,403

2,809823

3,632

771

13972

560

0) (132

428

00

24

404

(4)

400

424

) (700

240

Change in % Q3/Q2

2001

4(46(25(10(55

(19

(10(4

(8

(60

(314

(98

–) (99

(98

(18(13

2

–

–

–

–

)

9 months 2000

in CHF m

3,6326,7223,677

0(4

14,027

8,5632,276

10,839

3,188

426373

2,389

) 0) (677

1,712

00

68

1,644

(4

1,640

1,708

(2200

680

9 months2001

in CHF m

8,019) 5,368) 3,680) 1,942) 280

) 19,289

) 11,629) 4,030

) 15,659

) 3,630

) 658731

) 2,241

(1) (575

) 1,665

) 394) 373

817

81

0

81

898

82606574

1,009605

Q3/2001in CHF m

2,7341,1201,002

57755

5,488

3,5331,375

4,908

580

219341

20

0(3

17

106115280

(484

0

(484

(204

82163178345183

Q2/2001in CHF m

2,6302,0931,329

641121

6,814

3,9281,425

5,353

1,461

226298

937

0) (232

705

130132274

) 169

0

) 169

) 443

(24200202338207

)

)

)

)

businesses versus the previousquarter. The decreases also spannedprimary, secondary and structuringactivity. Despite the market conditionsin a number of emerging market economies, the emerging marketsarea continued with relatively strongrevenues in the third quarter. Thedivision’s US research team, benefitingfrom the DLJ merger, significantlyimproved its ranking, moving fromninth to third place in the InstitutionalInvestor poll.

The Equity division’s third quarterrevenues of USD 666 million (CHF 1.1 billion) were 45% lower than thepreceding quarter. Markets depressedby poor corporate results, recessionfears and the impact of terroristattacks have negatively affected bothcustomer-related trading revenues andfee revenues from capital marketsactivity. In Institutional Investor’s USEquity research poll released inOctober 2001, the division moved tosecond place from fourth last year.

The results of the FinancialServices division also declined owingto weak equity markets and lower retailinvestor activity. Third quarter revenuesof USD 344 million (CHF 577 million)are 7% lower than in the second quar-ter. Assets under management,including Private Equity assets held onbehalf of clients, totaled USD 95.0 bil-lion (CHF 153.5 billion) as of Septem-ber 30, 2001, with USD 6.6 billion(CHF 11.1 billion) in net new assetsduring the first nine months of 2001.





439,781

275,224

169,030134,40654,13223,7837,352

122,837

222,80267,1509,536

11069,55031,35712,455

1999

9,925

10,4949.9%

6.7%76.3%

19.0%

15,185

55.0%

Credit Suisse First Boston balance sheet information

Total assets

Total assets (in USD m)

Due from banks– of which securities lending and reverse repurchase agreements

Due from customers– of which securities lending and reverse repurchase agreements

Mortgages Securities and precious metals trading portfolio

Due to banks– of which securities borrowing and repurchase agreements

Due to customers, other– of which securities borrowing and repurchase agreements

Credit Suisse First Boston key information (based on CHF amounts)

Cost/income ratio 1) 2)

Cost/income ratio (operating) 1) 2) 3)

Return on average allocated capitalReturn on average allocated capital (operating) 3)

Return on average allocated capital (operating, excl. amortization of retention payments, net of tax) 2) 3)



Pre-tax margin (operating, excl. amortization of retention payments) 2) 3)

Personnel expenses/operating income 1) 2)

Number of employees

1) Excl. acquisition interest.2) Excl. amortization of retention payments.3) Excl. amortization of acquired intangible assets and goodwill.


669,758

409,738

245,345208,09491,22723,08719,566

192,301

371,033131,741102,43137,863

9 months2000

80.8%80.3%

20.1%20.9%

20.9%

10,916

16.5%17.0%17.0%

61.0%

31 Dec. 2000

28,122


681,812

421,966

218,554167,205127,34554,88020,083

189,976

362,315140,458124,98561,878

9 months2001

89.8%84.6%

0.6%7.1%

10.0%

16,952

0.3%5.5%8.5%

60.3%

30 June 2001

27,687

Q3/2000

86.2%85.7%

14.5%15.4%

15.4%

11,103

12.2%12.7%12.7%

63.8%

30 Sept. 2001

27,623

Q2/2001

86.8%81.9%

) 3.8%) 10.0%

) 13.0%

17,653

) 2.9%) 7.9%) 10.8%

57.6%

Q3/2001

99.7%93.4%

(11.3%(4.8%

(2.1%

17,069

(12.1%(5.8%(2.6%

64.4%

The Investment Banking division’sthird quarter revenues fell 23% versusthe second quarter to USD 596 million(CHF 1.0 billion). Revenues from equi-ty capital markets activity fell versusthe second quarter due to a reductionin the number and size of transactionsclosed. Fee revenue from high yieldnew issuances also declined; however,Credit Suisse First Boston is still the global leader in this market. InM&A business, the division continuesto be number one in terms of numberof transactions, and currently ranksthird in terms of announced dealamount, up from fourth place as at the second quarter. The Private Equity

22

business recorded a pre-tax loss ofUSD 97 million (CHF 163 million) inthe third quarter, compared to a loss of USD 129 million (CHF 217 million) in the first half of the year. The bookvalue of all Private Equity investmentsstood at USD 2.3 billion (CHF 3.7billion) and fair value at USD 2.5 billion(CHF 4.0 billion) as of September 30,2001.

Credit Suisse First Boston hasannounced a broad cost-reductioninitiative with the aim of reducingoperating expenses by USD 1.0 billion(CHF 1.7 billion) by the end of 2002.The plan entails reducing staff levelsas well as achieving savings from non-

staff costs. This will align the businessunit’s cost structure more closely withthat of its competitors and tailor thefirm’s size to current marketconditions.

Total operating costs dropped 6%on a quarterly basis to USD 2.9 billion(CHF 4.9 billion), with the majority ofthe decrease attributable to lowercompensation costs. Largely in re-sponse to weakened revenues, per-sonnel expenses were reduced 8% to USD 2.1 billion (CHF 3.5 billion)versus the second quarter.


CONSOLIDATED RESULTS

Income statement 1)

Interest and discount incomeInterest and dividend income from trading portfoliosInterest and dividend income from financial investments Interest expenses

Net interest income

Commission income from lending activitiesCommissions from securities and investment transactionsCommissions from other servicesCommission expenses

Net commission and service fee income

Net trading income

Premiums earned, netClaims incurred and actuarial provisionsCommission expenses, netInvestment income from the insurance business

Net income from the insurance business

Income from the sale of financial investmentsIncome from investment activities

– from participations valued according to the equity method– from other non-consolidated participations

Real estate incomeSundry ordinary incomeSundry ordinary expenses

Other ordinary income/(expenses), net

Operating income


Operating expenses


Depreciation and write-offs on non-current assetsAmortization of acquired intangible assetsAmortization of goodwillValuation adjustments, provisions and losses from the banking business

Depreciation, valuation adjustments, losses

Profit before extraordinary items, taxes and minority interests

Extraordinary incomeExtraordinary expensesTaxes


Minority interests

Net profit

Amortization of acquired intangible assetsAmortization of goodwillTax impact

Net operating profit

1) Certain reclassifications have been made to prior-period amounts to conform to the current presentation.

Change in %9 months

2001/2000

1380

(29) 24

37

309

209) (2

17

15

12) (1) 0

(36

10

178(4(93324

(30) 52

) 225

17

2941

32

(15

57-

28255

104

(47

16(83(31

(50

59

(53

–282

–

(37

)

)

)

)

))

)

)

)

))

)

)

)

9 months2000

in CHF m

20,8525,584

535) (23,212

3,759

48011,495

339) (719

11,595

7,176

20,999) (21,565) (1,574

6,416

4,276

3921361181898

906) (1,739

) (207

26,599

13,3494,337

17,686

8,913

9460

143840

1,929

6,984

51(184)

(1,488)

5,363

(168)

5,195

0143

0

5,338

9 months2001

in CHF m

23,56010,028

381) (28,823

5,146

62212,5691,047

) (704

13,534

8,263

23,567) (21,356) (1,581

4,093

4,723

1,09013110724

122630

) (2,646

) (673

30,993

17,2656,122

23,387

7,606

1,487590546

1,303

3,926

3,680

59(31)

(1,024)

2,684

(267)

2,417

590546

(195)

3,358

Q3/2000in CHF m

7,7231,620

175) (8,340

1,178

1693,754

118) (228

3,813

2,275

6,041) (6,175) (536

2,161

1,491

19751438

39304

) (673

) (82

8,675

4,4311,548

5,979

2,696

3210

49234

604

2,092

8(50)

(390)

1,660

(55)

1,605

0490

1,654

Q2/2001in CHF m

7,8063,943

105) (10,246

1,608

1614,410

359) (235

4,695

3,216

7,070) (7,249) (685

2,767

1,903

464267

1926

179) (935

) (240

11,182

5,9592,214

8,173

3,009

502202186412

1,302

) 1,707

5) (5)) (335)

) 1,372

) (84)

) 1,288

202186

) (65)

1,611

Q3/2001in CHF m

7,0143,412

168(8,599

1,995

2403,654

308(249

3,953

1,998

6,756(5,014

(45416

1,304

40629254

48121

(1,134

(530

8,720

5,2761,954

7,230

1,490

502197190653

1,542

(52

7(1

(117

(163

(136

(299

197190(67

21



Balance sheetAssetsCash and other liquid assets Money market papersDue from banksReceivables from the insurance businessDue from customers MortgagesSecurities and precious metals trading portfoliosFinancial investments from the banking businessInvestments from the insurance businessNon-consolidated participationsTangible fixed assetsIntangible assetsAccrued income and prepaid expensesOther assets

Total assets

Total subordinated assetsTotal receivables due from non-consolidated participations

Liabilities and shareholders’ equityMoney market papers issuedDue to banksPayables from the insurance businessDue to customers in savings and investment depositsDue to customers, otherMedium-term notes (cash bonds)Bonds and mortgage-backed bonds Accrued expenses and deferred income Other liabilitiesValuation adjustments and provisionsTechnical provisions for the insurance business

Total liabilities

Reserve for general banking risksShare capital Capital reserveRevaluation reserves for the insurance businessReserve for own sharesRetained earnings Minority interestsNet profit

Total shareholders’ equity

Total liabilities and shareholders’ equity

Total subordinated liabilitiesTotal liabilities due to non-consolidated participations

Change in%

(224

(11(3273

(325(67

(5(21616

2

(49(24

(12(1(8(514(514(9(1

(160

3

0(40

1(92312138(16(58

(13

2

122


2,92830,127

243,6929,871

145,25792,432

198,91725,574

132,6321,8299,913

23,29916,29454,668

987,433

4,876771

23,176359,441

8,80739,233

213,5493,225

65,52428,02157,65313,107

132,175

943,911

2,3196,009

19,2824,789

6002,1672,5715,785

43,522

987,433

21,801779

)

))

)

)

))

))

)) ))

)

)))

)

)

))

)


2,27331,388

216,5439,597

184,11495,635

193,54131,902

124,6991,9599,427

22,89518,89263,197

1,006,062

2,468587

20,412354,873

8,09137,307

244,0383,078

74,57025,63757,01210,996

132,111

968,125

2,3193,589

19,436382

2,4695,1582,1672,417

37,937

1,006,062

22,064954

24

Off-balance sheet businessContingent liabilitiesCredit guarantees in form of avals, guarantees

and 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

Fiduciary transactions

Derivative instrumentsInterest rate productsForeign exchange productsPrecious metals productsEquity/index-related productsOther products

Total derivative instruments

Selected notes

Currency translation rates in CHF1 USD1 EUR1 GBP100 JPY

Securities and precious metals trading portfoliosDebt instruments

– listed on stock exchange– unlisted

Total debt instruments– of which own bonds and medium-term notes

Equity instruments– listed on stock exchange– unlisted

Total equity instruments– of which own shares

Precious metals

Total securities and precious metals trading portfolios

– of which securities rediscountable or pledgeable at central banks

Change in%

1

3790

(8

90

8

(75

(62

(2

Negative grossreplacement

value31 Dec. 2000

in CHF bn

66.332.12.0

18.13.3

121.8

31 Dec. 2000

1.63461.52422.44421.4252

Change in %

1118

1542

(33(46

(35(43(40

(3

24

)

)

)

)

))

)))

)


7,013

4,8243,1425,026

20,005

126,998

305

150

41,974

Positive grossreplacement

value31 Dec. 2000

in CHF bn

66.430.41.5

15.22.7

116.2

30 June 2001

1.79801.52022.53341.4512


63,68465,678

129,362837

59,4548,081

67,5357,4742,020

198,917

72,618


7,083

23,0853,1484,619

37,935

137,754

76

57

40,990

Nominal value

31 Dec. 2000in CHF bn

5,793.31,139.4

34.8473.980.4

7,521.8

30 Sept. 2001

1.61581.47822.37701.3548


70,54777,798

148,3451,190

39,6394,336

43,9754,2561,221

193,541

90,024

Negative grossreplacement

value30 Sept. 2001

in CHF bn

104.731.02.0

14.72.9

155.3

Q3/2000

1.651.562.541.54

Positive grossreplacement

value30 Sept. 2001

in CHF bn

106.830.41.6

14.22.7

155.7

Q2/2001

1.681.512.421.40

Nominalvalue


7,960.51,609.9

33.4384.1117.5

10,105.4

Q3/2001

1.681.512.421.39

Average rate year-to-date Closing rate as of



Split of income statementbanking/insurance1)

Net interest income Net commission and service fee incomeNet trading incomeIncome from the insurance business 2)

Other ordinary income/(expenses), net

Operating income


Other operating expenses 2)

Operating expenses


Depreciation and write-offs on non-current assetsAmortization of acquired intangible assetsAmortization of goodwillValuation adjustments, provisions and losses

Depreciation, valuation adjustments, losses

Profit before extraordinary items,taxes and minority interests

Extraordinary incomeExtraordinary expensesTaxes


Minority interests

Net profit

1) Income statements for the banking and insurance business are presented on a stand-alone basis.2) Insurance business: expenses due to the handling of both claims and investments are allocated to the income from the insurance business, of which: CHF 408 m

(9 months 2000: CHF 386 m) are related to personnel expenses and CHF 226 m (9 months 2000: CHF 261 m) to other operating expenses.

Statement of shareholders’ equityTotal shareholders’ equity as of January 1, 2001Repayment out of share capitalDividends paid to minority interestsCapital increases, par value and capital surplusCancellation of repurchased sharesChanges in scope of consolidation affecting minority interestsForeign exchange impactChange in revaluation reserves from the insurance business, netMinority interest in net profitNet profit

Total shareholders’ equity as of September 30, 2001

in CHF m

43,522(2,392

(173164

(569(198(522

(4,579267

2,417

37,937

))

))))

2000in CHF m

6182

(1,986911

(1190

0

(2)237

5,785

43,522

Banking business TotalInsurance business

9 months2001

in CHF m

5,12213,5478,263

0(380

26,552

15,5655,059

20,624

5,928

1,125590509

1,303

3,527

2,401

25(31

(668

1,727

(191

1,536

9 months 2000

in CHF m

3,75911,5957,176

0) 63

22,593

11,8793,336

15,215

7,378

7510

120840

1,711

5,667

51) (184) (1,185

4,349

) (65

4,284

9 months2001

in CHF m

000

4,736(294

4,442

1,7001,063

2,763

1,679

3620

370

399

1,280

34) 0) (356

958

) (76

882

9 months2000

in CHF m

000

4,276) (270

4,006

1,4701,001

2,471

1,535

1950

230

218

1,317

00

) (303

1,014

) (103

911

9 months2001

in CHF m

5,14613,5348,2634,723

) (673

30,993

17,2656,122

23,387

7,606

1,487590546

1,303

3,926

3,680

59(31

) (1,024

2,684

) (267

2,417

9 months2000

in CHF m

3,75911,5957,1764,276

) (207

26,599

13,3494,337

17,686

8,913

9460

143840

1,929

6,984

51) (184) (1,488

5,363

) (168

5,195

)

))

)

26

Fair ValueNew basis1)


16,59344,193

60,786

7,04822,199

29,247

2,2097,903

10,112

Investments from theinsurance businessNon-lifeDebt instruments 1)

Equity instrumentsReal estateMortgagesLoansShort-term investmentsNon-consolidated participations

Investments – non-life

LifeDebt instruments 1)

Equity instrumentsReal estateMortgagesLoansShort-term investmentsNon-consolidated participations

Investments – life

Equity instrumentsDebt instruments and loansShort-term investmentsReal estate

Total investments where investmentrisk is borne by the policyholder

Investments – life

CombinedTotal debt instruments 1)

Total equity instrumentsTotal real estateTotal mortgagesTotal loansTotal short-term investmentsTotal non-consolidated participations

Total investments

Total investments where investmentrisk is borne by the policyholder

Total investments

Less debt instruments, loans issued by Group companies, non-consolidated participations and own-use real estate

Total investments from the insurance business

1) Cost column balances represent amortized costs.

Market value31 Dec. 2000

in CHF m

17,4806,5292,176

47,58625,2488,182

65,06631,77710,358

Market value30 Sept. 2001

in CHF m

16,6674,5972,215

51,23416,8948,663

67,90121,49110,878

Cost31 Dec. 2000

in CHF m

17,1815,0251,882

46,51019,1277,139

63,69124,1529,021

Cost30 Sept. 2001

in CHF m

16,2845,1181,906

49,71318,1757,613

65,99723,2939,519

)

Book value30 Sept. 2001

in CHF m

16,6674,5971,5951,840

2891,618

218

26,824

51,23416,8946,2038,0144,2902,528

336

89,499

8,8651,501

801127

11,294

100,793

67,90121,4917,7989,8544,5794,146

554

116,323

11,294

127,617

(2,918

124,699

Book value31 Dec. 2000

in CHF m

17,4806,5291,5851,869

1541,858

192

29,667

47,58625,2485,7737,5554,3241,590

205

92,281

10,1361,2331,402

118

12,889

105,170

65,06631,7777,3589,4244,4783,448

397

121,948

12,889

134,837

) (2,205

132,632



Risk commentary

While the more challenging economicenvironment has led to a moderateincrease in impaired assets in corpo-rate exposures at Credit Suisse FirstBoston during the third quarter of2001, Credit Suisse Banking’simpaired assets continued to decline.The asset quality of Credit SuisseGroup remains sound, with higherprovisioning requirements in theinvestment banking business beingoffset by reductions in the Swiss retailbanking business. Running slightlyhigher trading risks than in the previ-ous quarter, Credit Suisse First Bostonreported strong trading returns in thethird quarter of 2001.

Trading exposures The average VaR at Credit Suisse FirstBoston in the third quarter of 2001was USD 78.0 million, compared withUSD 73.0 million during the secondquarter of 2001. The VaR increasewas due to increased positions in theinterest rate trading areas, as well asthe normal updating of the underlyingdata used to calculate VaR. As illus-trated in the backtesting chart, tradingreturns were strong and Credit SuisseFirst Boston had no regulatory back-testing exceptions (days when thetrading loss exceeds the respectiveVaR) in the third quarter.

Asset quality Credit Suisse Group’s credit portfolio isperforming well in a challengingenvironment, with the share of invest-ment grade exposure remainingsteady. While signs of fragility are ap-parent in particular sectors, the re-spective exposures are being moni-tored very closely. These are activelymanaged through intensified clientcontact and, where possible, additionof collateral, purchase of credit protec-tion and/or shortening of maturities toensure the safest possible structure.Until exposures exhibit signs of deteri-oration to an extent that would justifythem being classified as impaired, noprovisions are created.

28

Asset quality &provisionsNon-performing loans (NPLs) 1)

Capital provisions against NPLs 2)

Counterparty exposure 1)

– of which lending

Coverage ratio of NPLsSept. 30, 2001June 30, 2001March 31, 2001NPLs as percentage of credit exposureSept. 30, 2001June 30, 2001March 31, 2001

1) Includes loans and loan equivalents.2) Excludes total interest of CHF 1,407 m (fully provided).

Credit SuisseGroup


9,1655,148

418,330172,551

56%60%62%

2.2%2.3%2.3%

113,4131,8198,889,7

Credit SuisseFirst

Boston30 Sept. 2001

in CHF m

2,8951,548

250,85933,792

54%53%60%

1.2%1.0%0.7%

4,1

113,5

201,9

Credit SuissePrivate

Banking30 Sept. 2001

in CHF m

11470

40,19036,284

62%50%62%

0.3%0.4%0.3%

4th quarter 2000 1st quarter 2001 2nd quarter 2001 3rd quarter 2001

Daily revenue One-day VaR (99%)

Credit Suisse FinancialServices


6,1563,530

127,281102,475

57%63%62%

4.8%5.3%6.0%

CSFB trading exposures (99% one-day VaR)Total VaRPeriod endAverageMaximumMinimum

VaR by risk typeInterest rateForeign exchangeEquityCommodity

Subtotal

Diversification benefit

Total

Credit Suisse First Boston computes these VaR estimates separately for each risk type and for the wholeportfolio using the historical simulation methodology. Diversification benefit reflects the net difference betweenthe sum of the 99% percentile loss for each risk type and for the total portfolio.

Q4/2000in USD m

84.186.7

103.975.5

31 Dec. 2000in USD m

80.58.9

24.21.5

115.1

) (31.0

84.1

)

Q1/2001in USD m

83.882.499.469.5

31 March 2001in USD m

97.615.712.72.2

128.2

) (44.4

83.8

Q2/2001in USD m

72.373.085.366.6

30 June 2001in USD m

79.817.121.21.1

119.2

) (46.9

72.3

Q3/2001in USD m

85.078.095.263.1

30 Sept. 2001in USD m

107.215.223.32.5

148.2

(63.2

85.0

in USD m

100

50

0

–50

–100

–150

Relationship between daily revenue and VaR estimate for Credit Suisse First Boston


INFORMATION FOR INVESTORS

Credit Suisse Group shares Ticker symbolsStock exchange listings Bloomberg Reuters Telekurs

SWX (Swiss Exchange)/virt-x CSGN VX CSGZn.VX CSGN,380Frankfurt CSX GR CSGZn.DE CSX,013New York (ADS) 1) CSR US CSR.N CSR,065Tokyo 8653 JP CSGZ.T N1492,106

1) 1 ADS represents 1 registered share.

Swiss security number 1213853 ISIN number CH0012138530 German security number DE 876 800CUSIP number 225 401 108

RatingsAgencies Credit Suisse Group Credit Suisse First Boston Winterthur

Long term Short term Long term Short term Long term Short term

Moody’s, New York Aa3 - Aa3 P1 Aa3 P1 Aa3Standard & Poor’s, New York AA- A1+ AA A1+ AA A1+ AAFitch IBCA, New York AA- F1+ AA- F1+ AA F1+ AA-

Credit Suisse

CREDIT SUISSE GROUPMedia RelationsKarin Rhomberg Hug, Andreas HildenbrandTel. + 41 1 333 8844 Fax + 41 1 333 8877

Mailing address: P.O. Box 1, 8070 Zurich, Switzerland

Copies of all Credit Suisse Group’s financial publications may be ordered from:

CREDIT SUISSEKIDM 23Uetlibergstrasse 2318070 ZurichSwitzerlandFax + 41 1 332 7294www.credit-suisse.com/q3review2001/order.html

Enquiries

CREDIT SUISSE GROUPInvestor RelationsGerhard Beindorff, Andreas PeterlikTel. + 41 1 333 4570, + 41 1 333 3169Fax + 41 1 333 2587





credit-suisse quarterly review q3/2001

Economy & Finance

credit suisse asset

credit exposures

credit suisse2001

credit suisse private

forwardlooking statements

information available

sheet business

relevant information