2008-09-10 citi swiss private banking roundtable

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  • 1. Private Banking UpdateCitigroup Swiss Private Banking Roundtable Zurich, September 9, 2008Martin Mende, Private Banking Head of Business Development

2. Cautionary statementCautionary statement regarding forward-looking and non-GAAP 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, and we might not be able to achieve the predictions, forecasts, projections and other outcomes we describe or imply in forward-looking statements. A number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions we express in these forward-looking statements, including those we identify in quot;Risk Factorsquot; in our Annual Report on Form 20-F for the fiscal year ended December 31, 2007 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. This presentation contains non-GAAP financial information. Information needed to reconcile such non-GAAP financial information to the most directly comparable measures under GAAP can be found in Credit Suisse Group's second quarter report 2008.Citi Swiss Private Banking Roundtable September 9, 2008, Page 2 3. AgendaStatus & overall StrategyInternational GrowthClient Value PropositionThe Integrated BankFinancial Targets Citi Swiss Private Banking RoundtableSeptember 9, 2008, Page 3 4. Key trends in Wealth Management From ... To ...Focus on total client wealth, including Services around free investible assetsall asset classes as well as liabilities Narrow focus on classical privateComprehensive solutions, combining banking offeringsprivate and investment banking skills Segmentation mostly along asset size Needs-based segmentation will finally and product usagetake off Focus on home markets and offshore Global business models, on- and centersoffshore capabilities in all major regions Citi Swiss Private Banking RoundtableSeptember 9, 2008, Page 4 5. Current markets: Where do we stand?! Long-term growth prospects for wealth managers remainintact Rise of emerging markets Generational transfers of wealth Private investment banking! Credit Suisse is well positioned to face challenges and tooutperform its competitors Global presence Strong balance sheet Unique Integrated Bank approach Citi Swiss Private Banking RoundtableSeptember 9, 2008, Page 5 6. Good net new asset growth in Wealth ManagementNNA growth on AuM in %5.8 7.57.36.4 6.91) CHF bn314351 5029WM NNAAuM grew by 36%(2004-1H08),representing aWM AuM784839774568 693 CAGR of 9% 200420052006 2007 1H081) Annualized Citi Swiss Private Banking Roundtable September 9, 2008, Page 6 7. Continued strong gross marginWM gross margin on AuM (bps) 113112115117 Transaction-based40 383531Recurring73 748086 20052006 20071H08Citi Swiss Private Banking RoundtableSeptember 9, 2008, Page 7 8. Credit Suisse as the premier global private bank What will it mean?! We lead the industry in client solutions! We work as part of a truly integrated bank! We are the preferred employer for top performers and talent! We outgrow the competition, globally and in core markets! Our productivity is benchmark! We deliver superior returns to our shareholders Our clients are our ambassadorsCiti Swiss Private Banking RoundtableSeptember 9, 2008, Page 8 9. Private Banking: Strategy overview Premier global private bankMarket share Integrating ProductivityInternationalClient valuegains inthe banking and financial Best people growthpropositionSwitzerland businesses performance Premier bank in SwitzerlandCiti Swiss Private Banking Roundtable September 9, 2008, Page 9 10. AgendaStatus & overall StrategyInternational GrowthClient Value PropositionThe Integrated BankFinancial Targets Citi Swiss Private Banking RoundtableSeptember 9, 2008, Page 10 11. Strong growth in mature markets and increased presence in key emerging markets Continued +14 offices in 10 investment incountries/+550 RMs Accelerated Russia and since 2007Continued turn-growth in Eastern Europearound and growthWestern Europein the US China onshoreIndia onshoreestablishedlaunched Gulf: Leverage integrated bankJapan onshore Mexico onshore in preparation in preparation Relationship Managersat year-end4'100Expanded3'140presence in Brazil 2'540(Hedging-Griffo)+330 p.a.Australia onshore+200 p.a.launchedGoal 2004 20072010 Citi Swiss Private Banking Roundtable September 9, 2008, Page 11 12. Our hiring philosophy Prudent economics Cultural fit! Clear business case for each ! Entrepreneurial spirit hired RM (NNA, revenues)! Share our view on how ! Average break-even forwe serve clients+ RMs 18-24 months! Broad solution and product ! Focus on pay forexpertise performance; limited upfront bonusCiti Swiss Private Banking Roundtable September 9, 2008, Page 12 13. Region EMEA: Key figures and achievements Key figures 1H08Key achievements! Segment initiatives for UHNWI and AuM (CHF bn) 285entrepreneurs successfully rolled-out growth1) NNA 5.1% ! Improved UHNWI coverage! Continuously expanded product offering Relationship managers 1'300! Expanded footprint in UK and Italy! Launched India onshore! Launched Austria onshore! Opened offices in Israel, Kazakhstan, Ukraine Way forward ! Accelerate growth in France, Germany, Italy, Spain and UK ! Continue investment into Moscow onshore platform; launch Poland onshore ! Further develop the Gulf region in an Integrated Bank approach ! Expand UHNWI franchise, e.g., by hiring additional dedicated RMs and improved solution offering ! Further roll-out client need segmentation, client profitability and sales cycle1) AnnualizedCiti Swiss Private Banking Roundtable September 9, 2008, Page 13 14. Region Asia-Pacific: Key figures and achievements Key figures 1H08Key achievements! Launched Australia onshore AuM (CHF bn) 64! Acquired Hindal NNA growth1)19.4%! Opened branch in Shanghai Relationship managers 440! Strengthened sales management functions! Continued product innovation! Established UHNWI competence center! Well ahead of hiring targets ytd. Way forward ! Further invest in regional platform, e.g., product and solution capabilities, operations, shared services ! Realize value from new onshore presences (Australia, China, Indonesia) ! Launch Japan onshore ! Expand UHNWI franchise and leverage Integrated Bank1) Annualized Citi Swiss Private Banking RoundtableSeptember 9, 2008, Page 14 15. Region Americas: Key figures and achievements Key figures 1H08 Key achievements ! Expanded presence in Latin America AuM (CHF bn) 112 Successful integration of Hedging Griffo growth1) NNA 9.3% Opened Panama office ! Continued turnaround of US business, e.g., Relationship managers510 Strengthened management, added various top RMs Expanded service/product suite Opened 4 new offices Way forward ! Latin America: Further growth Broaden collaboration between CS and Hedging Griffo in Brazil (e.g., referrals, product distribution) Launch Mexico onshore leveraging IB and AM platforms Further enhance product offering ! US: Further growth and increase of profitability Continue recruiting best in class RM teams Strengthen products and services by leveraging PB global expertise and Integrated Bank1) AnnualizedCiti Swiss Private Banking Roundtable September 9, 2008, Page 15 16. AgendaStatus & overall StrategyInternational GrowthClient Value PropositionThe Integrated BankFinancial Targets Citi Swiss Private Banking RoundtableSeptember 9, 2008, Page 16 17. Client Centricity as strategic way to innovate aroundclient needs Segment specific Client understanding Advisory processClient profitability value propositionsIllustrativeProfitable Not Life- cycle phaseprofitable ++ + e yp rtClient 1Client 2 Client 3viohaBeSource of wealth Revenue Economic profit ! Needs-based customer ! Targeted offering, e.g., ! Comprehensive advice ! Client Profit and Loss segmentationaround successionin five structured steps including Economic planningProfit ! Example: Entrepreneurs ! Boost in client ! Dedicated ! Identification and as key segment satisfaction Entrepreneur Desksdevelopment of focus! Increased profitability clients (sales cycle)! Basis and new insights for growth drivers ! Clients' needs met holistically through high-quality advice and service Citi Swiss Private Banking Roundtable September 9, 2008, Page 17 18. Managed Investment Products as key thrust Benefits! Broad risk diversification Client! Large variety of innovative solutions ! Professional investment management ! Broad range of components for tailor made solutionsRelationship ! More time for advice and relationship building Manager ! Improved efficiency ! Reduced revenue volatilityBank ! Higher margins through higher value added ! Increased revenues for Investment Banking and Asset MgmtCiti Swiss Private Banking Roundtable September 9, 2008, Page 18 19. AgendaStatus & overall StrategyInternational GrowthClient Value PropositionThe Integrated BankFinancial Targets Citi Swiss Private Banking RoundtableSeptember 9, 2008, Page 19 20. Unique value proposition to Private Banking clients through integrated coverage and solution delivery ClientRelationship ManagerSolution SpecialistsInvestment BankingPrivate Banking Asset Management ! Traditional services:! Financial planning and! Traditional Investment Equities, FI, FX, Primeinvestment consulting:funds: Equities, FI... Services, Research...Pension Planning, Trust ! Discretionary MandatesServices, Inheritance & ! Alternative Investments: ! Alternative Investments:Tax Consulting... Structured Products, Private Equity, Hedge! Banking products: Pay- Commodities... Funds, Real Estate...ments, Deposits, Lending, ! Corporate Finance! Labeled fund solut

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