credit suisse private banking · credit suisse private banking quo vadis michael m. rüdiger...

Credit Suisse Private BankingQuo Vadis

Michael M. RüdigerZürich, 22. November 2006

Bankentag Wealth Manager Quo VadisNov. 22nd 2006,

Disclaimer

Cautionary statement regarding forward-looking information

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve inherent risks and uncertainties, andwe might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking statements.

A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions we express in these forward-looking statements, including those we identify in"Risk Factors" in our Annual Report on Form 20-F for the fiscal yearended December 31, 2005 filed with the US Securities and Exchange Commission, and in other public filings and press releases.

We do not intend to update these forward-looking statements except as may be required by applicable laws.


! Status Quo Credit Suisse

! Strategic Perspectives Credit Suisse Private Banking

! Evolution Steps Credit Suisse Private Banking

Agenda: Credit Suisse Private Banking � Quo Vadis

Status Quo - Credit Suisse


Financial highlights: 3Q2006

3Q06 2Q06 3Q05 9M06 9M05

Net revenues 1) 7,436 (8) (2) 25,124 17

Total operating expenses 1) 5,646 1 0 17,862 7

Pre-tax income 1) 1,830 (25) (9) 7,353 52

Net income 1,892 (12) (1) 6,654 40

Basic earnings per share in CHF 1.74 (10) 4 6.00 44

CHF m

Change in % fromChange

in % from

3Q06 2Q06 3Q05 9M06 9M05

Return on equity � Group in % 18.9 21.6 20.1 21.7 16.9

Return on equity � Banking in % 19.0 23.4 22.7 23.4 18.1

Cost/income ratio in % 1) 75.9 69.4 74.0 71.1 77.9

Net new assets in CHF bn 31.0 30.1 18.7 88.5 47.4

1) From continuing operations, excluding minority interest revenues of CHF 640 m, CHF 741 m, CHF 523 m, CHF 2,665 m, CHF 1,520 m and minority interest expenses of CHF 10 m, CHF 13 m, CHF 5 m, CHF 32 m, CHF 17 m in 3Q06, 2Q06, 3Q05, 9M06 and 9M05, respectively, from the

consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest


Pre-tax income by segment: 3Q2006

Pre-tax incomeCHF m

939

200

1,123

27

758

158

1,037

1,287

1,022

Investment Banking Private Banking Asset Management

3Q05 2Q06 3Q061)

1) Includes credits of CHF 474 m from insurance settlements for litigation and related costs2) Includes realignment costs of CHF 152 m, including CHF 127 m write-down of intangible assets

3) Includes realignment costs of CHF 40 m

2)

3)


Private Banking: Key Facts and Figures at 30 Sep. 2006

1) Excluding Shared Services headcount allocation of approx. 6,000 FTEs

! 2.5 million clients

~630,000 WM

~1,900,000 CRB

! 15,000 employees1)

! Global franchise

! CHF 8.7 bn net revenue

! CHF 3.5 bn pre-tax income

! CHF 904 bn AuM

! CHF 165 bn loans


Wealth Management with lower revenues and margin reflecting lower level of client activityNet revenues and gross margin

1.9 1.92.2 2.0 1.8

109125

113 101

114

0.0

1.0

2.0

3.0

30

55

80

105

130CHF bn

Gross margin onAuM in bp(right-hand scale)

Net revenuesin CHF bn(left-hand scale)

Rolling 4 quarters gross margin on AuM in bp(right-hand scale)

(9%)

(1%)

3Q05 4Q05 1Q06 2Q06 3Q06

bp

Margins on assets under management 9M05 9M06Transaction-based margin 40.4 bp 41.5 bpAsset-based margin 73.3 bp 71.1 bpGross margin 113.7 bp 112.6 bpNet margin 42.3 bp 44.8 bp


16.8

6.8

14.516.5

10.9

7.88.6

7.27.57.4

0

5

10

15

20

0

5

10

Wealth Management with steady asset growth

Net new assets and growth

3Q05 4Q05 1Q06 2Q06 3Q06

Net new assets in CHF bn (left-hand scale)

Net new asset growth in % 1) (right-hand scale)

714.1

28.2

10.9

753.2

30.06.2006

Net newassets

Market and FX related

movements

30.09.2006

CHF bn %

1) Rolling 4 quarter average

+5.5%

Assets under managementCHF bn

Strategic PerspectivesCredit Suisse Private Banking


Increasing client sophistication

Comprehensive asset & liability management

Advice

Products

Service

Investment proposals

Financial planning

Brokerage, mandates

Structured products

Tailor-madeindividual solutions

Reliability, confidentiality

International reach

Global capabilitiesand delivery

today80's


Credit Suisse Strategy:Fully integrated banking business

! Three Divisions focusingon client coverage andbest product delivery

! Shared services providing high-quality cost-effective services to divisions

! Four Regions to coordinate client coverage, market strategies and resources: "one face to the market"

! A culture basedon client focus

Switzerland

EMEA

Asia Pacific

Americas

Inve

stm

ent B

anki

ng

Priv

ate

Ban

king

Ass

et M

anag

emen

t

Sha

red

Ser

vice

s

Divisions

Regions

Implementation of a fully integrated banking business


Delivering integrated solutions to clients: Key initiatives

Leverage IB relationships for client referrals to PB and AM

Provide UHNW clients with customized solutions and access to IB and AM

Market alternative capital products to pension funds leveraging IB relationships

Grow sales of alternative products and other services to PB clients

Offer prime services / execution to hedge fund and mutual fund managers leveraging PB relationships


Performance Measurement & Reporting

! Manage regional UHNWI target client base

! Agree individual performance targets for UHNWI advisors

! Conduct performance reviews and pre-sales steering in order to orchestrate PB, AM and IB experts

! Perform quality assurance

Client & Prospect Management

! Nominate dedicated EMEA Investment Partners to form virtual community with UHNWI focus (elite team)

! Coordination and management instruments for dedicated UHNWI activities and know-how exchange and leverage

! External and internal positioning of value proposition

EMEA Investment Partners(virtual community)

! Continuously develop/enhance a transparent and well communicated UHNWI offering

! Maintain clear and pragmatic solution delivery processes and ownership with dedicated delivery coordination function

Products & ServicesDelivery Channels

UHNWI EMEA Framework

Human Resources Recruiting Processes, Strategic Hiring, Retention

UHNWI SUCCESSgrow with existing and new clients


Client

! Investment funds! Discretionary mandates! Alternative investment

products! Private equity! Private label funds

! IPO! M&A advisory! Derivatives! Structured finance! Trading

UHNWI Solutions Delivery Model: PB as Entry Point

Investment Banking

! Investment consulting! Trusts! Insurance wrappers! Inheritance & tax

consulting! Margin lending! Mortgages

Asset ManagementPrivate Banking

Solution Specialists

Relationship Manager

Local and Global Specialists


Private Banking: Our Strategy

Further extend

our leading client value proposition

Aggressively grow

international franchise

onshore and offshore

Gain market share in our Swiss home

market

Leverage opportunities

from integrating the banking businesses

Continuously improve

productivityand financial performance

Execute with best people


Growth: Onshore with more Potential than Offshore

31.935.1

26.3

8.8

2004 2005 Onshore Offshore

+10%

Growth rate2006-09

Absolute growthcumulated 2006-09

8% 9.5 tr

4% 1.5 tr

More than six times higher potential

onshore

Assumption: No geopolitical crisisIn case this happens offshore growth will increase

in CHF tr

Source: BCG and CSG company estimates


Strong market growth in all major regions

Target regions Opportunity driver

Strong economic development

Commodity- / reforms-driven growth

Wealth monetization and transfer to the next generationEurope

Middle East

Asia-Pacific 1)

Industry shift towardsfull-service model North America

Set to benefit from increased trade and growth in AsiaLatin America

1) Includes Indian Subcontinent


Emerging Markets Grow Fastest �Mature Markets have the Highest Absolute Growth

0.5

0.6

1.1

2.2

2.4

6.0

11.0

11.2

Market growth outlookgrowth rate p.a. until 2009

HNWI AuMin CHF tr 20051)

6-8%

3-5%

3-4%

10-15%

10-15%

10-15%

6-8%

3-5%

Absolute growthcumulated 2006-09

4.0 tr

2.4 tr

1.0 tr

1.7 tr

0.6 tr

0.8 tr

0.1 tr

0.3 tr

58 %North America

Western Europe

Japan

Asia-Pacific (excl. Japan)

Latin America

Middle East

Switzerland

Eastern Europe


Global Franchise of Credit Suisse Wealth Management

Service locations

Los AngelesMiami

Nassau

San Francisco

Dallas

Chicago Boston

AtlantaNew York

Mexico

CaracasBogotá

Lima

SantiagoBuenos Aires

MontevideoSão Paulo

Rio de Janeiro

Moscow

Cairo

Istanbul

Dubai

St. Petersburg

Abu Dhabi

Beijing

ShanghaiTaipeiGuangzhou

Hong Kong

Bangkok

Singapore

Jakarta

Cape Town

Johannesburg

Athens

Mumbai

Lisbon

Madrid

ParisZurich

ViennaFrankfurt

London

Guernsey

Gibraltar

Milan

Luxembourg

BeirutDoha

Baltimore

Monaco

Sydney1)

1) as of Nov 1, 2006;

! Switzerland: 75 service locations! Germany: 14 service locations ! Italy: 32 service locations ! France: 3 service locations! Spain: 3 service locations

Melbourne1)


Wealth distribution in Europe

1499

UK

1321

Germany

827

France

600

Switzerland

94

Portugal

134

Austria

363

Spain

397

Belgium

997

Italy

Wealth of households (bn USD) with AuM > USD 1 m

P Turn-around of onshore businesses managed and next steps for growth initiated

P Major NNA contribution for the Group already this year with over CHF 5 bnin 9 months up 12%

P Results ahead of 2007 targets for profitability

Europe Onshore

Source: BCG Global Wealth Report 2005


PB EMEA: Market Management as the basis for client focus and collaboration

P Coordination of top clientsP Seamless client servicing across booking platforms and

organizational layersP Growth potential by serving clients on- and offshore

Clients

Markets P One overarching market strategyP Buy-in and implementation by all market participants

CommunicationP "One voice to the market"P Common communication and market platforms (e.g.

dedicated Intranet pages)

ProductsP Country-specific product and service offeringP Combined demand across all booking platforms to ensure

critical size for tailor-made solutions


PB EMEA: Deepening our target offering

European Middle Market Initiative! Providing corporate advisory concepts/services to SMEs! Developing a coverage and execution framework

Credit

Mortgage

Lombard

Corporate Finance

Single Stock Lending

PB CH

Client

RM

Net worth

Assets Liabilities

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Liquidity Credits

Company Stakes

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Net worth

Assets Liabilities

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Liquidity Credits

Company Stakes

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Wea

lth

Man

agem

ent

Real Estate

Fiscal Advice

Succession Planning

Wealth Structuring

Family Office

Specific services (e.g. Art)

CS Trust

Corporate

Advisory

Private Equity

M & A

Capital Raising

IB

AM

ISP

Advisory

Discretionary

Investment Opportunities Selection

Investment Consulting

Semi-Discretionary

Execution-Only

Internet Banking

Trad

itiona

l PB

Produ

cts

Credit Initiatives! Entrepreneur financing! Real estate financing! Lending against non-traditional

products

Evolution StepsCredit Suisse Private Banking


Credit Suisse Wealth Management: Evolution Steps

Open Architecture & Best Select

Level of Sophistication

Holistic Advice /Private Asset LiabilityManagement

SocialResponsibleInvestmentsIntegrated

Offering

ImplementationManagement Approach

time


Evolution Step 1: Open Architecture & Best Select

After Sales

After Sales

CSn1

CSn2

CSn3

CSn4

Client Segmentsn5

Advisory / Sales Open

Architecture

Full range of

Internal &

External

Products &

Services

RMs

RMs

RMs

RMs

Products & Services

! Liquidity Products! Structured! Investment Products! Alternative! Investment Products! Equity Linked Products! Real Estate Services ! Tax Advice! Legal Advice ! M&A Service! Equity / Quasi Equity

Raising! Securitization! Credit Mgmt.! etc.

Aft

er S

ales


Evolution Step 2: Implementation Management ApproachFunctional Bundle Partner

RelationshipManagement Advisory

PB based on Credit Suisse Asset Management (AM) know-how

Credit Suisse Private Banking (PB)

AMDomestic

AM International

Third Party �Best Select�

Strategic Asset Allocation Recommendation

Style & Manager Selection

PBComponents can

be choseninternal orexternal

internal orexternal

Portfolio Implementation

Client Reporting

PerformanceMeasurement & Controlling


Wealth Allocation

from staticto dynamic /from pre-tax to after-tax Networth

Asset Liabilities

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Liquidity Liabilities

Equities

Bonds

Alternatives

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Pre Tax

After Tax

Optimization basedon agreed WealthManagement Style

P & L

Contributionper

Asset & LiabilityClass

Cash Flow / drain

Per

form

ance

Evolution Step 3: Holistic Advice Private Asset LiabilityManagement


Evolution Step 4: Integrated Offering

International Specialist Teams

SpecialistTeams

InsuranceConsulting

Asset /PortfolioManagement

InvestmentConsulting

Real EstateConsulting

CreditConsulting

Family OfficeServices

Wealth Structuring &Financial Planning

RelationshipManager

SIPConsulting

Client

RelationshipManager

IntegratorApproach

IntegratorApproach

Net worth

Assets Liabilities


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Fdjkfalöjdfks löjFjfkaldöfjkdlaöjfakdlöfjkalöfjd








Liquidity Credits

Company Stakes

Net worth

Assets Liabilities




Fdjkfalöjdfks löjFjfkaldöfjkdlaöjfakdlöfjkalöfjd








Liquidity Credits

Company Stakes

CorporateAdvisory

Private EquityConsulting

CEFConsulting

TrustConsulting

PrivateBanking

InvestmentBanking

AssetManagement

CS TrustEntities

CS AdvisoryPartners


Evolution Step 4 (cont.): Matching Platform

Client1 Client 2

Investor Des-Investor

! Private Equity

! Venture Capital

! Mezzanine

! Strategic & Financial Stakeholdings

! Real EstateSegment specific & asset class specific advisory modules

Buy Side Advisory

P r i v a t e A s s e t & L i a b i l i t y M a n a g e m e n t

Net worth

Assets Liabilities

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Liquidity Credits

Company Stakes

Net worth

Assets Liabilities












Liquidity Credits

Company Stakes

Net worth

Assets Liabilities












Liquidity Credits

Company Stakes

Net worth

Assets Liabilities












Liquidity Credits

Company Stakes

Matching

Platform

Sell Side Advisory


Client DemandProfile

RelationshipManagement Transaction

Private Equity

InvestmentIdeas

Product (y) Design

Sales Support

Evaluation of Investment Ideas

via Specialist Communities

Definition of Specialist Communities

HNWI &UHNWI Investors

CommunityDefinition

�

�

��

��

��

��

�

� � �

��

��

��

�

�

Transaction Type (x)

Y

T

Evolution Step 5: Social Responsible Investments

Selection ofSocial EntrepreneurshipFocus Topics:

Water

Golden Age

Health


Thank you for your attention

Questions & Answers

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