Download - 2008-09-10 Citi Swiss Private Banking Roundtable

Private Banking Update

Citigroup Swiss Private Banking RoundtableZurich, September 9, 2008

Martin Mende, Private BankingHead of Business Development

Citi Swiss Private Banking RoundtableSeptember 9, 2008,

Cautionary 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 "Risk Factors" 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.

Cautionary statement


Status & overall Strategy

International Growth

Client Value Proposition

The Integrated Bank

Financial Targets

Agenda


Key trends in Wealth Management

Global business models, on- and offshore capabilities in all major regions

Focus on home markets and offshore centers

Comprehensive solutions, combining private and investment banking skills

Narrow focus on classical private banking offerings

Focus on total client wealth, including all asset classes as well as liabilities

Services around free investible assets

Needs-based segmentation will finally take off

Segmentation mostly along asset size and product usage

From ... To ...


Current markets: Where do we stand?

! Long-term growth prospects for wealth managers remain intact� Rise of emerging markets� Generational transfers of wealth� Private investment banking

! Credit Suisse is well positioned to face challenges and to outperform its competitors� Global presence� Strong balance sheet� Unique Integrated Bank approach


Good net new asset growth in Wealth Management

31 50

CHF bn

NNA growth on AuM in %5.8 7.5 7.3 6.4 6.91)

43 51WM NNA

WM AuM

2004 2005 2006 2007

839568 693 784

AuM grew by 36% (2004-1H08), representing a CAGR of 9%774

1H08

29

1) Annualized


Continued strong gross margin

WM gross margin on AuM (bps)

113 112 115 117

2005 2006 2007 1H08

40 38 35 31

73 74 80 86

Transaction-based

Recurring


! 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

Credit Suisse as the premier global private bank �What will it mean?

Our clients are our ambassadors


Premier global private bank

Premier bank in Switzerland

Private Banking: Strategy overview

Client value proposition

International growth

Market share gains in

Switzerland

Integrating the banking businesses

Productivity and financial performance

Best people


Agenda




The Integrated Bank

Financial Targets


Strong growth in mature markets and increased presence in key emerging markets

Japan onshore in preparation

China onshore established

Australia onshore launched

India onshore launched

Gulf: Leverage integrated bank

Continued investment in Russia and Eastern Europe

Mexico onshore in preparation

Expanded presence in Brazil (Hedging-Griffo)

Continued turn-around and growth in the US

Accelerated growth in Western Europe

2'5403'140

4'100

2004 2007 Goal 2010

+200 p.a.+330 p.a.

Relationship Managersat year-end

+14 offices in 10 countries/+550 RMs

since 2007


! Clear business case for each hired RM (NNA, revenues)

! Average break-even for RMs 18-24 months

! Focus on pay forperformance; limited upfront bonus

Prudent economics

! Entrepreneurial spirit

! Share our view on how we serve clients

! Broad solution and product expertise

Cultural fit

Our hiring philosophy

+


Region EMEA: Key figures and achievements

! 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 cycle

! Segment initiatives for UHNWI and entrepreneurs successfully rolled-out

! Improved UHNWI coverage! Continuously expanded product offering! Expanded footprint in UK and Italy! Launched India onshore! Launched Austria onshore ! Opened offices in Israel, Kazakhstan, Ukraine

Key achievements

Way forward

Key figures

AuM (CHF bn)

NNA growth1)

Relationship managers

285

5.1%

1'300

1H08

1) Annualized


AuM (CHF bn)

NNA growth1)


Region Asia-Pacific: Key figures and achievements

! Launched Australia onshore! Acquired Hindal! Opened branch in Shanghai! Strengthened sales management functions! Continued product innovation ! Established UHNWI competence center! Well ahead of hiring targets ytd.

! 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 Bank

64

19.4%

440

Key achievements

Way forward

Key figures 1H08

1) Annualized


Region Americas: Key figures and achievements

Key figures

! Expanded presence in Latin America� Successful integration of Hedging Griffo� Opened Panama office

! Continued turnaround of US business, e.g.,� Strengthened management, added various top

RMs� Expanded service/product suite� Opened 4 new offices

! 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 Bank

AuM (CHF bn)

NNA growth1)


112

9.3%

510

Key achievements

Way forward

1H08

1) Annualized


Agenda




The Integrated Bank

Financial Targets


Client Centricity as strategic way to innovate around client needs

+ +

Advisory process Client profitabilitySegment specific value propositions

+

Client understanding

! Needs-based customer segmentation

! Example: Entrepreneurs as key segment

! Targeted offering, e.g., around succession planning

! Dedicated Entrepreneur Desks

! Comprehensive advice in five structured steps

! Boost in client satisfaction

! Increased profitability

! Client Profit and Loss including Economic Profit

! Identification and development of focus clients (sales cycle)

! Basis and new insights for growth drivers! Clients' needs met holistically through high-quality advice and service

Economic profit

Not profitable

Revenue

Profitable

Clie

nt 1

Clie

nt 2

Clie

nt 3

Illustrative

Source of wealth

Behav

iortyp

e

Life

- cyc

leph

ase


! Broad risk diversification

! Large variety of innovative solutions

! Professional investment management

! Broad range of components for tailor made solutions

! More time for advice and relationship building

! Improved efficiency

! Reduced revenue volatility

! Higher margins through higher value added

! Increased revenues for Investment Banking and Asset Mgmt

Client

Relationship Manager

Bank

Managed Investment Products as key thrust

Benefits


Agenda




The Integrated Bank

Financial Targets


Solution Specialists

Client

! Traditional Investment funds: Equities, FI...

! Discretionary Mandates! Alternative Investments:

Private Equity, Hedge Funds, Real Estate...

! Labeled fund solutions ! ...

! Traditional services: Equities, FI, FX, Prime Services, Research...

! Alternative Investments: Structured Products, Commodities...

! Corporate Finance Services: M&A, Equity/ Debt Capital Markets...

Investment Banking! Financial planning and

investment consulting: Pension Planning, Trust Services, Inheritance & Tax Consulting...

! Banking products: Pay-ments, Deposits, Lending, Leasing, Cards...

Asset ManagementPrivate Banking

Relationship Manager

Shared Services

Unique value proposition to Private Banking clients through integrated coverage and solution delivery


Leveraging the Integrated Bank: Key examples

! Cross-divsional client coverage management for largest clients in all regions

! Particularly broad effort in Switzerland, with 1'250 clients covered and over 1'300 employees involved in cross-divisional teams

Key Client Coverage

Solution Partners team

! Enable RMs to find out quickly what the entire bank can offer

! Leverage IB and AM capabilities for UHNWI clients

! Provide customized solutions across all asset classes with institutional discipline

! Set up of eight dedicated Desks on regional level

! Servicing UHNWI and Entrepreneur & Executive clients

! Joint cross-divisional offering (PB, IB, AM)

Swiss Entrepreneur/UHNWI desks

International growth

! Leverage local IB and AM presences for PB market entries

! Examples include Brazil, Mexico, Russia, China, Japan and Australia


Integrated Bank model maintains momentum

Gross margin with Wealth Management clients (in bps)

1H07 1H08

130 135

14 18

116 117

Referred to IB/AM

Booked inWealth Management


Agenda




The Integrated Bank

Financial Targets


Our target: Delivering strong results, while investing continuously and significantly in growth

! International platforms! Top Relationship Managers

Growth investments of CHF 300m+ p.a.

Pre-tax income margin > 40%

Net new assets growth > 6% (WM only)

Medium term-targets

! Innovative client value proposition! Managed Investment Products! Leverage the integrated bank

Supported by revenue growth initiatives

! Centers of Excellence! Operational Excellence

And stringent cost management

Download - 2008-09-10 Citi Swiss Private Banking Roundtable

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