credit-suisse Quarterly Review Q1/2001

CREDIT SUISSE GROUP QUARTERLY REVIEW 2001

Q1

EDITORIAL

Good performance in a challenging market environment

Lukas MühlemannChairman and Chief Executive Officer

Dear shareholders, clients and fellow employees

Dear readers

Credit Suisse Group performed wellduring the first three months of theyear against a backdrop of very chal-lenging market conditions. At the sametime, it succeeded in strengthening itsposition as one of the leading globalfinancial services providers in its coreareas of business – asset managementand investment banking.

The first quarter of 2001 contrastedsharply with that of the previous year,which was characterised by very hightransaction volumes in positive equitymarkets. However, the first quarter of2001 saw a correction in global equitymarkets, growing signs of a markedeconomic slowdown, a reduction ininformation technology investments anda downward revision of profit expecta-tions. While these factors have impact-ed parts of our asset gathering andcapital markets business, our life andnon-life insurance business continuedto report strong results.

In this difficult first quarter, CreditSuisse Group increased its operatingincome by 21% over the first quarter of2000, and by 4% over the previousquarter. Donaldson, Lufkin & Jenrette(DLJ) is included in the results from 3 November 2000. The Group’s netoperating profit stood at CHF 1.7 bil-lion, corresponding to an operatingprofit of CHF 5.74 per share. The netinflow of new assets remained strong,totalling CHF 19.9 billion. Assets under

management rose 0.5% comparedwith year-end 2000.

Our expectations relating to theacquisition of DLJ have already beenlargely fulfilled. The integration pro-gressed rapidly and smoothly, and wehave succeeded in retaining a highnumber of key individuals. The full im-pact of the merger should be felt fromthe second half of the year onwards.Moreover, the sale of Winterthur’s largemultinational corporates insurancebusiness represented a further stepforward in our efforts to focus on ourcore retail insurance activities in ournon-life business. Good progress hasalso been made in the implementationof our Personal Financial ServicesEurope strategy, and launches inGermany and Spain are set to goahead on schedule later this year.

The Credit Suisse Group shareprice rose 5% in the first four monthsof 2001, performing well in comparisonwith the market and competitors.

We are well positioned to exploitthe favourable prospects for profitablegrowth in the Group’s key areas ofbusiness. We expect difficult marketconditions to persist during 2001 butremain confident that, even in this chal-lenging environment, we will make fur-ther progress towards achieving ourtargets.

Lukas MühlemannChairman and Chief Executive OfficerMay 2001

www.credit-suisse.com 1

CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q1/2001

Share dataNumber of shares issuedShares ranking for dividendMarket capitalisation in CHF mBook value per share in CHF

Share price (as of 30.4.2001: CHF 323.50)at end of reporting periodquarter/year highquarter/year low

Average numbers of sharesEarnings per share in CHFOperating earnings per share in CHF 1)

Earnings per share – diluted, in CHFOperating earnings per share – diluted, in CHF 1)

1) Excl. amortisation of acquired intangible assets and goodwill, as well as for Q4/2000 excl. restructuring provision.

Changein %

00

(11

Change in %

(1(10(5

Change vs. Q1/2000

in %

10(32(20(32(20

Q1/2001

300,474,5934.755.744.745.73

)

)))

))))

31 March 2001

300,747,196300,747,196

91,878138.25

31 March 2001in CHF

305.5348.0279.0

Q4/2000

290,534,1302.036.472.036.45

31 Dec. 2000

300,437,990300,437,990

92,535136.30

31 Dec. 2000in CHF

308.0388.5293.0

Q1/2000

272,710,3857.027.196.987.15

Financial calendar

Annual General Meeting

Distribution of par value reduction

Second quarter results 2001/half-year results 2001

Third quarter results 2001

Fourth quarter/full-year results 2001

Friday, 1 June 2001

Wednesday, 15 August 2001

Wednesday, 29 August 2001

Tuesday, 20 November 2001

Tuesday, 12 March 2002

Share performanceSwiss Market Index Credit Suisse Group

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

90

100

80

70

50

30

20

60

40

10

0

91 92 93 94 95 96 97 98 99 00Q1/01

400

350

300

250

200

150

100

19971996 1998 1999 2000 2001

2

http://www.credit-suisse.com/en/q1review2001/bookmarks.html

derung seitQ1/2000

in %

3425

16173

4750

derung seit1.12.2000

in %

26.211.4

19.327.2

derung seit1.12.2000

in

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 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 employeesSwitzerlandOutside SwitzerlandTotal employees Credit Suisse Group

1) Excl. amortisation of acquired intangible assets and goodwill (Q1/2001: CHF 298 m; Q4/2000: CHF 216 m; Q1/2000: CHF 46 m), as well as excl. for Q4/2000restructuring provision of CHF 1,074 m, all net of tax.

2) Ratio is based on a tier 1 capital of CHF 18.4 bn (31 Dec. 2000: CHF 17.6 bn), of which non-cumulative perpetual preferred securities is CHF 1.1 bn (both periods).3) Ratio is based on a tier 1 capital of CHF 25.7 bn (31 Dec. 2000: CHF 27.1 bn), of which non-cumulative perpetual preferred securities is CHF 1.1 bn (both periods).

Change vs.Q1/2000

in %

21(4

(12(25(2

Change vs.Q1/2000

in %

(44(35(55(452726

(11

Change in %

81

(2

Change in %

5(51

(5

Changein %

0103

Change vs.Q1/2000 in %

(7

Changein %

132

Verän

))))

)))()

)

)

)

)

Verän3

Verän3

)

Q1/2000in CHF m

9,177 3,253 1,961 1,915 2,595

Q1/2000in %

24.925.529.330.013.213.624.4

31 Dec. 2000in CHF m

987,433 43,522 2,571


239,46527,1111,102

43,565

in %

7.113.6 11.3 18.2

31 Dec. 2000in CHF bn

710.0649.5

1,359.5 2,019.5

Q1/2000in CHF bn

21.5

31 Dec. 2000

28,23552,30380,538

Q1/2001in CHF m

11,091 3,107 1,726 1,428 2,535

Q1/2001in %

13.916.713.216.616.717.221.6

Q1/2001in CHF bn

19.9

Q4/2000in CHF m

10,631 3,169 1,880

5903,308

Q4/2000in %

6.119.02.5

18.719.920.430.6

31 March 2001in CHF m

1,065,543 44,099 2,521


250,39225,6991,118

41,599

in %

6.713.0 10.3 16.6

31 March 2001in CHF bn

711.1654.6

1,365.7 2,088.7

Q4/2000in CHF bn

16.9

31 March 2001

28,41853,730 82,148


AN OVERVIEW OF CREDIT SUISSE GROUP

11 0917 984

3 107

2382 386

(22635

1 773

298

1 475

(47

1 428

1 72

Credit Suisse Group posted a net operating profit of CHF 1.7billion in the first quarter of 2001, representing a 12% decreaseover a very strong first quarter of 2000 and an 8% decrease over the fourth quarter of 2000. The net inflow of new assetsremained strong, totalling CHF 19.9 billion.

Overview of business unit results

Q1/2001in 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 expenses/(income), net Taxes

Net operating profit before minority interests 1)

Amortisation of acquired intangible assets, net of tax, and goodwill

Net profit before minority interests

Minority interests

Net profit

Net operating profit 1)

Value added 3)

Average allocated equity capitalReturn on average equity capitalReturn on average equity capital (operating) 1)

Allocated equity capital as of 1 April 2001

1) Excl. amortisation of acquired intangible assets and goodwill. 2) Additional/(lower) credit-related valuation adjustments at Group level

resulting from the difference between the statistical and actual creditprovisions.

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. amortisation of goodwill), and cost of equity ischarged to the business unit as well as the consolidated accounts.

4) For Winterthur Group within Credit Suisse Financial Services, average invested capital is used for the calculation of return on invested capital (ROIC). 5) Including a previously announced restructuring charge of CHF 57 million after tax for the Luxembourg-based pan-European online brokerage platform.

Credit SuisseGroup

) 11,091) 7,984

3,1075) 483) 238

) 2,386

) 5) (225) 635

) 1,773

) 298

) 1,475

) (47

) 1,428

) 1,726

) 838

)

)

)

)

)

)

)

)

)

Adjustmentsincluding

CorporateCenter

(187(255

68

121(40

(13

(2265

(56

(1

(55

(18

(73

(74

(257

CreditSuisse

FirstBoston

6,8605,650

1,210

213150

847

1187

659

263

396

0

396

659

244

16,8369.4%

15.7% 17,325

24

CreditSuisseAsset

Management

377288

89

70

82

) 113

68

19

49

) 0

49

68

34

1,331n/an/a

1,366

–

CreditSuissePrivate

Banking

1,579673

906

1142

853

) (1202

652

3

649

) (7

642

645

585

4) 3,2754) n/a4) n/a

3,513

1

CreditSuisse

FinancialServices

2,462 1,628

834

13186

617

(1168

450

14

436

(22

414

428

232

10,82316.1%16.6%13,764

(33)

4

0.9

1.9

0.7

1.5–

1.1(0.4(0.9(0.4

(1.3

Assets under management

Credit Suisse Group has adjusted itsdefinition of assets under manage-ment and, for the first time, has dis-closed a broader category, client as-sets, to reflect the emerging industrydefinition of both asset categories.

Assets under management in-clude assets which are placed withCredit Suisse Group entities for in-vestment purposes or which – inthe case of insurance business –underlie insurance contracts. Clientassets is a broader metric and alsoincludes transactional accounts andcustody, e.g. corporate liquidityfunds, wholesale custody andbroking assets. Deposits frombanks and brokers are usually ex-cluded from assets under manage-ment and client assets. Net newassets exclude interest anddividends. Previously reported fig-ures have been adjusted.

Overview of assets under management/client assets

Credit Suisse Financial ServicesAssets under management– of which discretionaryClient assets

Credit Suisse Private BankingAssets under management– of which discretionaryClient assets

Credit Suisse Asset ManagementAssets under management– of which discretionaryClient assets

Credit Suisse First Boston Assets under management– of which discretionary– of which Private EquityClient assets

Credit Suisse Group (consolidated)Assets under management– of which discretionaryClient assets

Net new assets

Credit Suisse Financial ServicesCredit Suisse Private BankingCredit Suisse Asset Management 1)

Credit Suisse First Boston

Credit Suisse Group

Changein %

0.91.90.7

1.61.81.3

(0.4(0.9(0.4

(1.310.013.38.3

0.50.83.4

Change vs.Q1/2000

in %

(1250

(34(75

(7

)))

)

)

))

)


273.8142.6289.6

456.4108.7495.6

487.2360.1487.2

142.138.131.5

747.1

1,359.5649.5

2,019.5

Q1/2000in CHF bn

5.25.6

10.3) 0.4

21.5


276.4145.3291.7

463.6110.7502.2

485.4356.7485.4

140.341.935.7

809.4

1,365.7654.6

2,088.7

Q4/2000in CHF bn

3.44.79.3

(0.5

16.9

Q1/2001in CHF bn

4.68.46.80.1

19.9

1) Net new discretionary assets.

The first quarter of 2001 was charac-terised by a challenging market envi-ronment but reinforced Credit SuisseGroup’s strategy of being a broad-based leader in its core businesses ofasset gathering and investment bank-ing. Net operating profit for the firstquarter was CHF 1.7 billion, a de-crease of 12% over an extraordinarilystrong first quarter 2000 result of CHF2.0 billion. Compared with the resultfor the fourth quarter of 2000 of CHF1.9 billion (excluding the DLJ restruc-turing charge), net operating profit wasdown modestly, by 8%. The results forthe fourth quarter of 2000 include twomonths of the DLJ acquisition. Assets

under management increased by 0.5%compared with year-end 2000.

Operating earnings per share forthe first quarter of 2001 were CHF5.74, which included the new sharescreated in association with the DLJacquisition. This compared to CHF7.19 per share for the first quarter andCHF 6.47 per share for the fourthquarter of 2000.

Operating income amounted toCHF 11.1 billion for the first quarter of2001, corresponding to an increase of 21% over the first quarter and of4% over the fourth quarter of 2000.Operating expenses were up 35% overthe first quarter and 7% over the fourth


AN OVERVIEW OF CREDIT SUISSE GROUP

Net operating profit contribution by business unit

CSFS

CSPB

CSAM

CSFB

Operating income composition

Balance sheet business

Commission and service fees

Trading

Insurance

Operating income contribution by business unit

CSFS

CSPB

CSAM

CSFB

36%4%

24%

36%

3%

14%

61%

22%

44%

14%14%

28%

6

quarter of 2000, to CHF 8.0 billion.Both reflect the acquisition of DLJ on 3 November 2000. Reported net profitfor the first quarter of 2001 was CHF1.4 billion, compared to CHF 1.9 billionfor the first quarter and CHF 0.6 billion(including the DLJ restructuring charge)for the fourth quarter of 2000. The dif-ference between reported net profit andnet operating profit is the exclusion ofacquisition-related non-cash items suchas amortisation of goodwill and intangi-ble assets. These items net of tax to-talled CHF 298 million (CHF 0.99 pershare) for the first quarter of 2001,compared to CHF 46 million (CHF0.17 per share) for the first quarter andCHF 216 million (CHF 0.74 per share)for the fourth quarter of 2000. The firstquarter also included a previouslyannounced restructuring charge of CHF57 million after tax for the Luxembourg-based pan-European online brokerageplatform. Excluding the restructuringcharge, net operating profit was down9% on the first quarter and down 5%on the fourth quarter of 2000.

Credit Suisse Group's operating re-turn on equity was 16.7% for the firstquarter of 2001, compared with 25.5%for the first quarter and 19.0% for thefourth quarter of 2000, reflecting thechange in market conditions. The Grouprepurchased 1.9 million shares up to 1 May 2001 for cancellation at theAnnual General Meeting on 1 June2001, in line with its previouslyannounced share repurchase pro-gramme.

Highlights in the first quarter of 2001

• The net inflow of new assets wasstrong across all business units.Credit Suisse Private Banking con-tributed CHF 8.4 billion, CreditSuisse Asset Management CHF6.8 billion and Credit SuisseFinancial Services CHF 4.6 billionto the Group’s net new assets,which totalled CHF 19.9 billion.

• The Fixed Income division at CreditSuisse First Boston reported adramatic return to profitability, re-

sulting from improved marketconditions and the first stages ofthe implementation of a new strate-gic plan. Fixed Income revenueswere up 100% over the firstquarter and 118% over the fourthquarter of 2000.

• Winterthur Life & Pensions had avery strong first quarter with growthin premiums earned at 19%,demonstrating its resilience in diffi-cult capital markets. Net operatingprofit for Winterthur Life &Pensions was up 23% on the firstquarter of last year.

• As a result of the divesture of itsinsurance business for large multi-national companies, WinterthurInsurance is now one of the veryfew solely retail non-life insurers.Net operating profit at WinterthurInsurance was up 6% over the firstquarter of 2000.

Outlook 2001

Credit Suisse Group continues tobelieve that the long-term prospects forthe financial services industry willprovide a fundamentally attractive oper-ating environment for its core activities.The Group is pleased with its perform-ance in a very difficult first quarter andwith the progress made with the DLJacquisition, where it is ahead of itsgoals in most measures. The difficultcapital markets environment is continu-ing in the second quarter, affectingboth the asset gathering and theinvestment banking units. While theGroup is confident about future busi-ness prospects, it expects 2001 willcontinue to be a very challenging year.



REVIEW OF BUSINESS UNITS

New developments in the first quarter of 2001

Credit Suisse Group announced in March that it planned a par valuereduction of CHF 8 per share in lieu of a dividend, and a 4-for-1 sharesplit resulting in a new par value of CHF 3 per share. If approved bythe Annual General Meeting on 1 June, the capital reduction of CHF 8will be paid out on 15 August 2001. The split brings the share pricemore in line with that of the Group’s international peers, and is part ofthe preparation for a listing of Credit Suisse Group’s ADR (AmericanDepositary Receipt) in the US this year.

Swiss Prime Site, the real estate investment company managed byCredit Suisse Asset Management, announced in April it was in mergertalks with Feldschloesschen-Huerlimann Holding. If approved, the dealwould create Switzerland’s largest real estate company, managing aproperty portfolio worth CHF 2.6 billion (USD 1.5 billion).

Credit Suisse First Boston continued to add market share acrosskey businesses. In Europe, it topped Institutional Investor’s Februaryequity research rankings, adding to its number one pro-forma rankingin the US. Credit Suisse First Boston also ranked number one inEuropean primary equity issuance in the first quarter of 2001. In termsof US mergers and acquisitions, it ranked number three in the firstquarter, and in fixed income was ranked third globally in debt primaryissuance and second in high yield.

Credit Suisse Private Banking introduced the Protected InvestmentNote (PIN), which offers high returns regardless of equity market per-formance – targeting around 13% p.a. based on a 10-year investmentperiod – and provides capital protection. These two features make PINhighly attractive in the current environment of stock market uncertaintyand low interest rates.

Credit Suisse Life launched the first ever unit-linked insuranceproduct in Japan. Combining the advantages of life insurance and aunit trust, this product looks set to grow rapidly in Japan, where thereis increasing concern about the capacity of the public pension system.




Credit Suisse Financial Services

Thomas WellauerChief Executive Officer

Credit Suisse Financial Services report-ed a net operating profit of CHF 428million for the first quarter of 2001. This5.1% decrease on the first quarter of2000 (+5.9% compared to the fourthquarter) was attributable to increasedinvestments in the European personal

8

financial services business. Net newassets amounted to CHF 4.6 billion.

Credit Suisse Financial Servicesachieved a good start to the year despitehighly challenging market conditions.Excluding Credit Suisse PersonalFinance, which is still investing in pan-European expansion, net operating profitfor the first quarter amounted to CHF519 million, up 9.3% on the correspon-ding period of the previous year but5.4% lower than in the fourth quarter of2000. The annualised return on averageequity capital was 16.1%. Strong resultsfrom insurance operations (net operating

profit for non-life up 6% and for life up23%) demonstrate the stable source ofearnings and growth in difficult capitalmarkets. Credit Suisse Personal Financeis rapidly expanding its multi-channel of-fering in key European markets. Aspreviously announced, this move will lead to significantly higher expenditurethan in the previous year. The launch ofPersonal Finance in Spain and Germanyis planned for the second half of theyear. The pan-European online broker-age platform is, however, to be discontin-ued.

As of 1 January 2001, results willbe reported for the business units

Overview of business area Credit Suisse Financial ServicesQ1/2001in CHF m

Operating incomeOperating expenses





Extraordinary expenses/(income), netTaxes


Amortisation of acquired intangible assets and goodwill


Minority interests

Net profit


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

Allocated equity capital as of 1 April 2001

Assets under management in CHF bn 5)

– of which discretionaryNet new assetsClient assets

1) Defined as premiums earned (net), less claims incurred and expenses for processing claims as well as actuarial provisions, less commissions (net), plus investment in-come from insurance business; expenses from the handling of both claims and investments are allocated to revenue; personnel expenses Winterthur Insurance: CHF103 m, Winterthur Life & Pensions: CHF 28 m; operating expenses Winterthur Insurance: CHF 51 m, Winterthur Life & Pensions: CHF 30 m.

2) Excl. amortisation of acquired intangible assets and goodwill.3) Additional/(lower) credit-related valuation adjustments at Group level resulting from

the difference between the statistical and actual credit provisions.4) For Winterthur Group, average invested capital is used for calculation of return on invested capital (ROIC).5) According to the definition of assets under management on page 5.

CreditSuisse

FinancialServices

2,4621,628

) 834

13186

) 617

(1) 168

) 450

14

) 436

(22

) 414

) 428

10,82316.1% 16.6%13,764

276.4145.3

4.6291.7

(33

)

)

)

4)

4)

4)

)

CreditSuisse

PersonalFinance

16119

(103

60

(109

) 1(19

(91

1

(92

0

(92

(91

32n/an/a35

5.82.90.45.8

) –

Credit Suisse

Banking

1) 9831) 6151) 368

3386

249

(264

187

3

184

) 0

184

187

4,42816.6%16.9%4,250

130.82.62.1

146.1

(33

Winterthur Life &

Pensions

1) 6481) 3191) 329

620

267

063

204

5

199

) (5

194

199

107.1107.1

2.1107.1

–

6,363 4)

21.6% 4)

22.3% 4)

9,479 4)

WinterthurInsurance

815575

240

300

210

060

150

5

145

(17

128

133

32.732.7n/a

32.7

–

eränderungseit

Q1/2000in %

388

42

103

17

59

15

–

10

10

70

5

19 757 -

12

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) 2)




Amortisation of goodwill


Minority interests

Net profit


1) Excl. amortisation of goodwill.2) For Q1/2001, incl. a partial recognition of CHF 43 million before tax related to the sale of Winterthur International.

Q1/2000in CHF m

4,902) (557

4,345

(1,260

3,085) (2,401) (94) (955

) (365

53223

) (34) 27

183

0) (47

136

) (4

132

) (10

122

126

Change vs.Q1/2000

in %

38) 8

42

) 103

17) 17) 19) 10

) (6

(1(70

) (2459

15

–) 28

10

) 25

10

) 70

5

6

V

)

)))

)

2 3

Q4/2000in CHF m

3,715) (422

3,293

) 251

3,544) (2,741) (94) (1,033

) (324

65827

) (34(22

305

0) (73

232

) (4

228

) (28

200

204

Q1/2001in CHF m

6,774(601

6,173

(2,556

3,617(2,799

(112(1,049

(343

5297

(2643

210

0(60

150

(5

145

(17

128

133

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

Q4/2000

106.5%

77.2%

29.3%

31 March 2001

32.7

30,122

22,244

Q1/2001

106.4%

77.4%

29.0%

Q1/2000

108.8%

77.8%

31.0%

31 Dec. 2000

32.5

26,653

21,796



19991999

n Mio USD1999

n Mio USD

241

9 7535 368

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


1) Excl. amortisation of goodwill.

Q1/2000in CHF m

5,221) (95

5,126) 0

5,126) (2,350) (3,080) (711) (393

1,77222

) (29) (59) (92

206

0) (30

176

) (3

173

) (14

159

162

Change vs.Q1/2000

in %

19) (46

20–

19) 57) (32) (43) (5

(55(41

) 10) (37) (58

30

–) 110

16

) 67

15

) (64

22

23

i

i

)

)))))

))

)

Q4/2000in CHF m

4,225) (77

4,148) (1

4,147) (2,675) (1,597) (229) (470

1,32922

) (29) (61) (180

257

0) (31

226

) (4

222

) (14

208

212

Q1/2001in CHF m

6,189(51

6,138(14

6,124(3,686(2,094

(403(37279313

(32(37(39

267

0(63

204

(5

199

(5

194

199

Winterthur Life & Pensions key information (life business)

Expense ratio 1)

Net return on average technical provisions 2)

Net new assets in CHF bn 3)


Technical provisions in CHF m

Number of employees

1) Operating expenses/earned premiums.2) Net profit after tax before minorities/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.

Q4/2000

11.3%

21 bp

0.8

31 March 2001

107.1

107,380

7,095

Q1/2001

6.1%

19 bp

2.1

Q1/2000

7.7%

20 bp

1.4

31 Dec. 2000

104.7

105,522

6,562

10

Winterthur Insurance, Winterthur Life &Pensions, Credit Suisse Banking aswell as Credit Suisse PersonalFinance. Technology and Services aswell as Credit Suisse e-Businesssupply core services to the other CreditSuisse Financial Services businessunits, and the corresponding revenuesand expenses are included in thebusiness units served. e-brokerageactivities are included under CreditSuisse Personal Finance.

Winterthur InsuranceWinterthur Insurance posted a 17%rise in premiums earned versus the firstquarter of 2000, or a rise of 2% com-pared to the fourth quarter. Adjustedfollowing the acquisition of the UK-based company NIG, the premium in-crease was 7% on the same period ofthe previous year. At 77.4%, theclaims ratio was slightly below that ofthe first quarter of 2000, with bothfigures reflecting normal weather-related first quarter losses. Continuedmanagement focus on expense con-trol, coupled with strong growth, result-ed in a two-percentage-point decreasein the expense ratio year-on-year to29.0%. With weaker financial marketconditions, Winterthur Insurance’sinvestment return declined to 6.3%from 6.7% a year ago. Results wereparticularly strong in the UK throughthe direct business Churchill. The abilityto increase prices in the UK and otherEuropean markets contributed to im-proved results. Winterthur Insuranceachieved a net operating profit for thefirst quarter of 2001 of CHF 133 mil-lion, which was up 6% over the firstquarter of 2000 and, in the context ofanticipated seasonal factors, down35% on the previous quarter.

Winterthur Life & PensionsWinterthur Life & Pensions grew itspremiums by 19% compared with thefirst quarter of 2000, to CHF 6.1 bil-lion, and saw very positive develop-ments in premium volumes from group

life insurance business in Switzerlandand Spain. Adjusted for the acquisitionof Colonial Life UK and the largestCzech pension fund VOPF (VojenskyOtevreny Penzijni Fond), premium in-come was up 13.3%. Applying thenew definition, net new assets grew by2% (versus 1.6% in the first quarter of2000). As a result of its acquisition ofVOPF, Winterthur Life & Pensionsis now number one in the CzechRepublic’s flourishing pension fundbusiness and has a market share ofmore than 25%. Despite a reduction ofthe investment return to 6.3%, the net

operating profit for life business wasCHF 199 million, up 23% on the firstquarter of 2000.

The unit-linked products grew30% in the first quarter (5% excludingacquisitions). Although weak equitymarkets slowed their growth, thesecontinue to be a priority for WinterthurLife & Pensions as part of its strategyof achieving a balanced portfolio ofunit-linked and traditional life products.

The coming months are likely tobring slower premium growth due toseasonal factors.




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









Minority interests

Net profit


1) Excl. amortisation of goodwill.2) Additional/(lower) credit-related valuation adjustments at Group level resulting from the difference

between the statistical and actual credit provisions.

Q1/2001in CHF m

614281844

983

403212

615

368

3386

249

(264

187

3

184

0

184

187

(33

Change vs. Q1/2000

in %

5(12(9

(64

(2

13(15

2

(8

230(49

11

) (9010

(1

0

(1

) –

0

0

)

)))

)

)

)

)

)

)

)

Q1/2000in CHF m

5843209211

1,007

356249

605

402

10167

225

(2158

188

3

185

(1

184

187

) (48

Q4/2000in CHF m

611285858

989

390257

647

342

45114

183

) 247

134

3

131

0

131

134

) (59

12

Credit Suisse BankingCredit Suisse Banking, the businessunit serving private and corporateclients in Switzerland, reported a netoperating profit of CHF 187 million inthe first quarter of 2001, the same asthe first quarter last year, and up 40%on the previous quarter. It succeeded inmaintaining last year’s strong first quar-ter performance, despite deterioratingconditions in the interest business andin securities. A 43% drop in incomefrom securities commissions, includinglower sales of mutual funds, led to acost/income ratio of 66.2%, slightlyhigher than in 2000. Return on equityrose marginally to 16.6%. Private clientbusiness recorded an annualisedincrease of 5% in mortgage volumes.

Net new assets amounted to CHF 2.1billion. Overall, assets under manage-ment remained stable at CHF 130.8billion despite market conditions. Incorporate client business, Credit SuisseBanking posted significant growth inthe volume of trade finance, while alsoachieving a substantial increase in rev-enues from foreign exchange business.Since end-2000, the number of DirectNet customers has risen 10% to288,590. Although the volume of elec-tronic payment orders continued to risesharply, the number of securities trans-actions executed stood at 58,000 –well below the previous year’s averageof 72,000.


Credit Suisse Banking balance sheet information

Total assets

Due from customersMortgages

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

Credit Suisse Banking key information

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

Return on average equity capital (reported)Return on average equity capital (operating) 1)

Average allocated equity capital in CHF m

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

Personnel expenses/operating income

Net interest margin

Loan growth

Net new assets in CHF bn

Deposit/loan ratio

Assets under management in CHF bn

Number of branches

Number of employees

Allocated equity capital as of 1 April/1 January 2001 in CHF m

BIS tier 1 ratio 2)

1) Excl. amortisation of goodwill.2) Legal entity Credit Suisse.

Q1/2000

61.4%61.1%

16.3%16.6%

4,540

24.1%24.4%

35.4%

237 bp

1.4%

3.0

31 Dec. 2000

69.1%

130.8

235

11,438

4,605

7.1%

Q4/2000

70.3%70.0%

12.2%12.5%

4,290

18.0%18.3%

39.4%

242 bp

1.0%

2.1

31 March 2001

70.9%

130.8

234

11,576

4,250

6.7%

Q1/2001

66.2%65.9%

16.6%16.9%

4,428

25.2%25.5%

41.0%

242 bp

2.2%

2.1


102,621

30,64164,904

32,65735,063


100,653

28,94064,616

33,32231,287



(277778

–

40

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


1) Excl. amortisation of goodwill.

Q1/2001in CHF m

31120

16

4970

119

(103

60

(109

1(19

(91

1

(92

0

(92

(91

Change vs. Q1/2000

in %

50220–

23

188169

177

) 243

500–

) 252

–) 171

) 279

0

) 268

–

) 268

) 279

)

Q1/2000in CHF m

2920

13

1726

43

) (30

10

) (31

0) (7

) (24

1

) (25

0

) (25

) (24

Q4/2000in CHF m

1601

8

47143

190

) (182

71

) (190

0) (45

) (145

1

) (146

0

) (146

) (145

14

n/a6.756

Credit Suisse Personal FinanceCredit Suisse Personal Finance plans toestablish a presence in the German andSpanish markets in 2001, and prepara-tions for its launch in the second half ofthe year are well on schedule in bothcountries. With the acquisition of brokerand asset manager General de Valoresy Cambios, announced in April,Credit Suisse Personal Finance has se-cured a good starting position in Spain.In the Italian market, Credit Suisse(Italy) continued to perform well,with net new assets amounting to CHF350 million in the first quarter. Swissonline broker youtrade recorded a cus-tomer number increase of 8% to

27,267, and the volume of transactionsexecuted was only marginally below theprevious year’s average. youtrade as-sets under management declined 5.9%as a result of market conditions, whilenet new assets amounted to CHF 103million.

The results for the fourth quarter of2000 included expensing of previouslycapitalised assets and continued invest-ment in the business, hence the de-crease in operating expenses recordedin the first quarter of 2001. Given itscontinuing high level of investmentactivity, Credit Suisse Personal Financereported a first quarter operating loss ofCHF 91 million.



Credit Suisse Personal Finance key information

Personal FinanceGrowth in assets under management– of which net new assets – of which market movement and structural effects

youtradeNumber of transactions (in ’000s)

Credit Suisse Personal FinanceAverage allocated equity 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 employeesAllocated equity capital as of 1 April/1 January 2001 in CHF m

Q1/2000

25.9% 18.7%

) 7.2%

133

n/a

31 Dec. 2000

4.817,898

331

0.9 25,228

76429

Q4/2000

1.5% 8.4%

) (6.9%

95

n/a

31 March 2001

4.919,381

337

0.927,267

90035

Q1/2001

1.4%7.2%

(5.8%

108

32



Credit Suisse Private Banking

Oswald J. GrübelChief Executive Officer

Credit Suisse Private Banking posteda net operating profit of CHF 645 mil-lion in the first quarter of 2001. Thisfigure was down 13% on the recordresults achieved in the first quarter of2000 but up 6% on the fourth quarterof 2000. Net new assets stood at CHF 8.4 billion.

16

At the end of the first quarter of 2001,Credit Suisse Private Banking reportedassets under management of CHF463.6 billion, up 1.6% on end-2000.In addition to the CHF 8.4 billion in netnew assets, CHF 3.7 billion in assetswere gained through the acquisition ofthe UK investment managementcompany JO Hambro, which areincluded here for the first time.

Total operating income decreasedby 6% versus the first quarter of 2000– a period characterised by exception-ally high transaction volumes – but were up 6% over the fourth quarter.Operating expenses climbed 8%compared with a year ago, owing to anincrease in staff numbers related

mainly to the expansion of interna-tional business and the IndependentPrivate Banks, as well as toinvestment in new technologies.

Large demand for alternativeinvestment productsCredit Suisse Private Bankinglaunched various new alternative in-vestment products in the first quarterof 2001. CS Alternative EquityPerformance Units are geared towardsinvestors seeking above-average risk-adjusted returns – primarily in theEuropean equity markets – by meansof a hedged investment strategy. Thesecond product, CS Alternative BondPerformance Units, allows investors to

12

Credit Suisse Private Banking income statement


Operating income


Operating expenses









Minority interests

Net profit


1) Excl. amortisation of goodwill.2) Additional/(lower) credit-related valuation adjustments at Group level resulting

from the difference between the statistical and actual credit provisions.

Q1/2001in CHF m

3141,024

16180

1,579

436237

673

906

1142

853

(1202

652

3

649

(7

642

645

1

Change vs. Q1/2000

in %

7(8

(36186

(6

(230

8

(14

38(35

(13

–(12

(13

50

(13

) (22

(13

(13

) –

))

)

)

)

)

)

)

)

)

)

)

)

Q1/2000in CHF m

2931,110

25128

1,682

443183

626

1,056

865

983

) 1230

752

2

750

) (9

741

743

) (9

Q4/2000in CHF m

32999315613

1,491

423281

704

787

415

768

) (8161

615

1

614

) (8

606

607

(8


According to the definition of assets under managem

exploit valuation variances on the glob-al bond markets.

The new Protected InvestmentNote (PIN), which offers attractive re-turns while protecting investors’ capitalagainst adverse stock market trends,has met with a great deal of interest.

Life Profit is a new product offeringan optimal combination of capitalutilisation and retirement income.Investors in Life Profit enjoy a regularincome and simultaneous tax benefitswithout any depletion of capital.

The Absolute investment compa-nies have provided clients with ef-fective capital protection since their

ent on page 5.

launch in 2000, in spite of slidingshare prices.

Innovations onlineThe first quarter of 2001 also sawCredit Suisse Private Banking expandits range of online services. MyCSPB,

the customised financial websitelaunched in February, met with astrong reception during the first fewweeks and has already been expandedto include additional functions. Afurther online tool, Portfolio Tracker,informs clients via e-mail or SMS iftheir predefined limits for specificstocks are reached.

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




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


1) Excl. amortisation of goodwill.2)


101,153

33,7179,206

22,621

Q1/2000

37.8%37.7%

3,027

58.3%58.4%

66.0%

) 5.3% 1.2%

) 4.1%–

64.8 bp64.9 bp

31 Dec. 2000

456.4

8,665

3,036


105,805

36,2029,184

24,404

Q4/2000

47.6%47.5%

3,189

52.0%52.0%

66.6%

(4.7% 1.0%

) (5.7%–

52.5 bp52.6 bp

31 March 2001

463.6

8,938

3,513

Q1/2001

43.5%43.3%

3,275

53.9%54.1%

64.9%

1.6%1.8%

(1.0%0.8%

56.4 bp56.7 bp





Credit Suisse Asset Management

Phillip M. ColebatchChief Executive Officer

In the face of prevailing negative mar-ket trends in the first quarter, CreditSuisse Asset Management waslargely able to offset reductions in mar-ket value with strong net new businessand to build on its strategic initiatives.Discretionary net new business gainsin the first quarter totalled CHF 6.8 bil-lion, or an annualised 7.6%.

18

Assets under management fell slightly,from CHF 487 billion as of 31December 2000 to CHF 485 billion asof 31 March 2001. Discretionaryassets under management fell by 1%from CHF 360 billion to CHF 357billion. The downward trend in globalmarkets accounted for a 2.8% decline(CHF 10.2 billion) in discretionaryassets since the start of the year.However, these market losses werepartially offset by the net new assetgains of 1.9% (CHF 6.8 billion).Discretionary equity assets were themost impacted by negative marketmovement. Credit Suisse AssetManagement enjoyed particularly stronginflows in its European retail business.

Net operating profit stood at CHF68 million, down 8% compared to firstquarter last year and down 33% com-pared to the fourth quarter. Revenuesof CHF 402 million were 8% higherthan first quarter 2000, primarily dueto the DLJ acquisition of 3 November2000. Expenses were 9% higher thanfirst quarter 2000, but year-on-yearexpense savings have been achievedafter normalising for the effect of theDLJ acquisition.

Against the difficult market back-drop, the business unit reported sever-al notable achievements. Integration ofthe DLJ asset management operationwith Credit Suisse Asset ManagementAmericas was completed, with all New

Credit Suisse Asset Management income statement

Management and advisory feesNet mutual fund feesOther revenues 1)

Operating income 1)


Operating expenses

Gross operating profit 1)


Valuation adjustments, provisions and losses

Profit before extraordinary items, acquisition impact, taxes 1) 2)


Net operating profit before acquisition impact, minority interests 1) 2)

Acquisition interest Amortisation of acquired intangible assets and goodwill


Minority interests

Net profit


1) Excl. acquisition interest.2) Excl. amortisation of acquired intangible assets and goodwill.

Q1/2001in CHF m

25912221

402

175113

288

114

70

107

113

93

2519

49

0

49

68

Change vs. Q1/2000

in %

18(1031

8

134

9

6

40–

4

–(35

12

17873

(22

–

(22

(8

)

)

)

)

)

Q1/2000in CHF m

22013616

372

155109

264

108

50

103

020

83

911

63

0

63

74

Q4/2000in CHF m

28313043

456

188133

321

135

110

124

10

123

2218

83

0

83

101


Credit Suisse Asset Management key information




Personnel expenses/operating income

Growth in assets under management

Growth in discretionary 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 1)/average AuM

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. amortisation of acquired intangible assets and goodwill.

Q1/2000

75.3%72.3%

1,054

22.3%25.3%

41.7%

6.3%

6.8%3.2%

) 3.6%–

5.7 bp6.7 bp

31 Dec. 2000

487.2360.1 127.1 136.9

2,350

1,296

Q4/2000

76.8%72.8%

1,269

18.2%22.1%

41.2%

) 6.9%

) 5.0%2.7%

) (8.7%11.0%

7.0 bp8.6 bp

31 March 2001

485.4356.7128.7129.5

2,327

1,366

Q1/2001

78.1%73.4%

1,331

15.4%20.1%

43.5%

(0.4%

(0.9%1.9%

(2.8%_

4.0 bp5.6 bp

York staff now working from the samelocation. As part of this integration,DLJ mutual funds have been mergedwith the Warburg Pincus funds andrenamed the Credit Suisse WarburgPincus funds.

Credit Suisse Asset Managementintroduced several innovative productsand services in the first quarter, includ-ing the first exchange-traded fundbased on the Swiss Market Index onthe SWX Swiss Exchange. Exchange-traded funds are a fast growing prod-uct area, and Credit Suisse AssetManagement has secured the first-mover advantage with this product inthe Swiss market.

In Australia, Morningstar namedCredit Suisse Asset Management a fi-

nalist for its overall fund manager ofthe year award, recognising the grow-ing strength of its operations there. InJapan, Credit Suisse AssetManagement Ltd. was ranked tenthamong asset managers in terms ofsix-month net asset gains. In Europe,Credit Suisse Asset Managementreceived the Investment Excellenceaward for European Fixed Incomefrom Global Investor, part of theEuromoney Institutional Investor group,and won an award from Standard &Poor’s for the best UK income fund.



Credit Suisse First Boston

Allen D. WheatChief Executive Officer

Credit Suisse First Boston reportedfirst quarter revenues of USD 4.3 bil-lion (CHF 7.1 billion), up 40% (CHF:43%) versus the first quarter of 2000and up 14% (CHF: 9%) on the pre-ceding quarter. The Fixed Income divi-sion, with its best quarter onrecord, was the main driving force behind the increase.

20

The Fixed Income division's turnaroundfrom the previous year is due in part toimproved market conditions in manysectors. Nearly all segments in the divi-sion reported greater revenues com-pared to the first quarter of 2000. Thelower interest rate environment and in-creased securitisation efforts of 2001have yielded strong gains in the ratesand credit groups. The high yield groupturned in a record performance, ascapital market activity in both dollar vol-ume and number of deals increasedsignificantly on the first quarter 2000.Both the high yield and securitisationactivities have benefited from the DLJmerger. The emerging markets group,with revenues comparable to the first

quarter of 2000, continues to be a keycontributor. The positive effects of thestrategic plan implemented by theFixed Income division in late 2000,which emphasises customer-drivensegments, are evident in improved in-vestor rankings, better research qualityand increased market shares in certainareas.

The Equity division produced goodresults in light of the difficult marketconditions. First quarter revenues were21% (CHF: 20%) below the recordfirst quarter 2000 revenues, but 31%(CHF: 23%) above the precedingquarter. The NASDAQ was down64% and the Dow Jones IndustrialAverage was down 16% from their

Credit Suisse First Boston income statement in CHF 1)

Fixed IncomeEquityInvestment BankingFinancial Services GroupOther income 2)

Operating income 2)

Personnel expenses 3)

Other operating expenses

Operating expenses 3)

Gross operating profit 2) 3)



Profit before extraordinary items,acquisition impact, taxes

Extraordinary expenses/(income), netTaxes 6)

Net profit before acquisition impact,minority interests

Acquisition interest, net of tax 6)

Amortisation of retention payments, net of tax 6)

Amortisation of acquired intangible assets,net of tax, and goodwill 6)


Minority interests

Net profit


)

)

)

)

)

Q1/2001in CHF m

2,6202,1551,299

724305

7,103

4,1681,288

5,456

1,647

213150

1,284

1340

943

158126

263

396

0

396

659

Change vs.Q1/2000

in %

100(2026

–) –

43

4287

50

22

12921

13

–(4

21

––

–

(48

) –

(47

(15

Q1/2000in CHF m

1,3122,6781,035

0(46

4,9797) 2,941

687

3,628

1,351

93124

1,134

0355

779

00

23

756

) (2

754

777

Q4/2000in CHF m

1,2031,7552,471

447636

6,512

3,2661,358

4,624

1,888

218164

1,506

0373

1,133

114118

186

715

(1

714

900


Credit Suisse First Boston income statement in USD 1)

Fixed IncomeEquityInvestment BankingFinancial Services GroupOther income 2)

Operating income 2)

Personnel expenses 3)

Other operating expenses

Operating expenses 3)

Gross operating profit 2) 3)



Profit before extraordinary items, acquisition impact, taxes

Extraordinary expenses/(income), netTaxes 6)

Net profit before acquisition impact,minority interests

Acquisition interest, net of tax 6)

Amortisation of retention payments, net of tax 6)

Amortisation of acquired intangible assets, net of tax, and goodwill 6)


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 in common with US competitors, rather than netted against revenues.

2) Excl. acquisition interest (Q1/2001: CHF 243 m; Q4/2000: CHF 175 m).3) Excl. amortisation of retention payments (Q1/2001: CHF 194 m; Q4/2000: CHF 181 m).4) Excl. amortisation of acquired intangible assets and goodwill (Q1/2001: CHF 326 m; Q4/2000: CHF 228 m;

Q1/2000: CHF 23 m).5) Additional/(lower) credit-related valuation adjustments at Group level (Q1/2001: CHF 24 m; Q4/2000: CHF 28 m;

Q1/2000: CHF 8 m) resulting from the difference between the statistical and actual credit provisions.6) Tax impact on acquisition interest, amortisation of retention payments and amortisation of

acquired intangible assets (Q1/2001: CHF 215 m; Q4/2000: CHF 166 m).7) Incentive compensation for DLJ employees was included in DLJ results prior to the acquisition date.

These expenses were not included in Q4/2000 results.

)

)

)

)

)

Q1/2001in USD m

1,598 1,314

792 442 185

4,331

2,542 785

3,327

1,004

130 91

783

1 207

575

96 77

160

242

0

242

402

148118

198

15

131

Change vs.Q1/2000

in %

96 (21 23

– ) –

40

39 84

48

20

124 18

11

– (6

19

– –

–

(48

) –

(48

(17

Q1/2000in USD m

815 1,663

643 0

(29

3,0927) 1,827

427

2,254

838

58 77

703

0 220

483

00

14

469

(1

468

482

00

14

5

0

Q4/2000in USD m

694 1,002 1,453

268 381

3,798

1,894 797

2,691

1,107

127 95

885

0 219

666

68 71

111

416

0

416

527

105109

137

17

101

2000 highs, and equity new issuancevolume in 2001 is well below last year’slevels. As a result, the division’s cashand capital markets activities havebeen adversely affected. However, therevenues of the derivatives group haveheld steady versus the first quarter of2000 and secondary trading continuesto gain market share.

The Financial Services Group wascreated from the DLJ merger; thus,there are no comparable results for the

first quarter of 2000, and the fourthquarter of 2000 only had two monthsof activity. As with the company’s otherequities-related businesses, difficultmarkets have adversely affected firstquarter revenues.

Although the Investment Bankingdivision's first quarter revenues arehigher than the same period in 2000,they declined sharply versus the pre-ceding quarter. Industry volumes for thetwo largest businesses, equity capital

markets and mergers and acquisitions,have fallen significantly, thus contribut-ing to the 45% (CHF: 47%) decline indivisional revenues versus the fourthquarter of 2000. Additionally, thePrivate Equity group recorded severalwritedowns on its investments in thefirst quarter of 2001. Private Equityrevenues in the first quarter of bothyears are comparable.

Credit Suisse First Boston hasestablished post-DLJ integration cost



Credit Suisse First Boston balance sheet information

Total assets

Total assets (in USD m)

Due from banks– of which securities lending and reverse repurchase agreementsDue from customers– of which securities lending and reverse repurchase agreementsMortgages Securities and precious metals trading portfolio

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

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

Cost/income ratio 2) 3)

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

Return on average equity capital (reported)Return on average equity capital (operating) 1)

Return on average equity capital (operating, excl. amortisation of retention payments, net of tax) 1) 2)


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

Pre-tax margin (operating, excl. amortisation of retention payments) 1) 2)

Personnel expenses/operating income 2) 3)

Number of employees

Allocated equity capital as of 1 April/1 January 2001; 1 April 2000 in CHF mBIS tier 1 ratio 4)

1) Excl. amortisation of acquired intangible assets and goodwill.2) Excl. amortisation of retention payments.3) Excl. acquisition interest.4) Ratio applies to the legal entity Credit Suisse First Boston and is based on a tier 1 capital of CHF 18.4 bn

(31 Dec. 2000: CHF 17.6 bn), of which non-cumulative perpetual preferred securities is CHF 1.1 bn (both dates). Tier 1 capital 31 March 2000 was CHF 11.0 bn.


669,758

409,738

245,345208,09491,22723,08719,566

192,301

371,033131,741102,43137,863

Q1/2000

75.2%74.7%

28.2%29.0%

29.0%

10,729

22.3%22.8%22.8%

59.1%

31 March 2000

15,331

10,9638.7%


739,123

426,622

271,073222,499103,03430,34318,110

218,522

427,256186,932103,21233,672

Q4/2000

77.9%74.4%

20.7%26.1%

29.5%

13,799

14.1%17.6%20.4%

50.2%

31 Dec. 2000

28,122

16,34613.6%

Q1/2001

84.4%79.8%

9.4%15.7%

18.7%

16,836

7.3%11.9%14.6%

58.7%

31 March 2001

28,211

17,32513.0%

savings targets for 2001 and beyond.The savings are to be achievedthrough a combination of headcountreductions – which have been com-pleted – and other cost synergies,which are on target or expected toexceed original goals. A portion of thesavings will be reinvested in thebusiness.

22

CONSOLIDATED RESULTS

Income statementInterest 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 participationsReal estate incomeSundry ordinary incomeSundry ordinary expenses

Other ordinary income/(expenses), net

Operating income


Operating expenses


Depreciation and write-offs on non-current assetsAmortisation 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

Net operating profit

1) Consistent with the presentation of 2000 figures, interest income and expenses have each been restated by CHF 2,242 m.2)

Q1/2000in CHF m

5,973571147

) (5,471

1,220

1483,873

108) (233

3,896

2,665

8,211) (8,636) (512

2,293

1,356

13731301

29289

) (446

40

9,177

4,5281,396

5,924

3,253

25446

303

603

2,650

31) (68

(658

1,955

) (40

1,915

1,961

Change vs.Q1/2000

in %

46368(27

) 82

26

4916

252) (6

25

14

19) 5) (14

(43

12

61145150

06614

) 29

143

21

3340

35

(4

165270(21

79

(24

52) (63) (13

(25

) 18

(25

(12

)

)

))

)

)

)

))

)

)

)

Q4/2000in CHF m

9,8683,119

170) (11,276

1,881

2374,544

331) (180

4,932

1,356

7,691) (7,335) (539

2,073

1,890

63181 810

42337

) (519

572

10,631

5,1542,308

7,462

3,169

564103425

1,092

2,077

55) (1,612) 139

659

) (69

590

1,880

Q1/2001in CHF m

8,7402,673

108(9,978

1,543

2214,505

380(220

4,886

3,049

9,741(9,093

(4421,310

1,516

22076751

48330

(577

97

11,091

6,0301,954

7,984

3,107

674170238

1,082

2,025

47(25

(572

1,475

(47

1,428

1,726


Consistent with the presentation of 2000 figures, CHF 185 m has been reclassified from interest and dividend income from financial investments to interest anddiscount income.


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

Changein %

(4(10112211(11313(0(2(358

15

8

(3932

53165

(34

(32

(13(304

8

00

12(35400116

(2(75

1

8

214


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

19,8824,789

6001,5672,5715,785

43,522

987,433

21,801779

))

)

)))

)

)

)

))

)

))


2,81027,224

269,58112,004

161,31191,733

223,84128,802

132,1561,7849,616

24,40917,66662,606

1,065,543

2,9761,019

35,359417,040

9,24238,111

221,0283,138

66,54824,32255,98313,151

137,522

1,021,444

2,3196,015

22,3233,1013,0003,3922,5211,428

44,099

1,065,543

22,198885

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

USD translation ratesAverage rate year-to-dateClosing rate as of reporting period end

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

Changein %

5

12(13

5

8

(54

4

9

Negative grossreplacement

value31 Dec. 2000

in CHF bn

66.332.12.0

18.13.3

121.8

Q1/2000

1.611.6611

Change in %

1629

2330

(2(32

(61

(31

13

29

)

)

))

)

)


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

Q4/2000

1.671.6346


63,68465,678

129,362837

59,4548,081

67,5357,474

2,020

198,917

72,618


7,342

5,3993,1065,189

21,036

136,769

140

156

45,891

Nominal value


5,793.31,139.4

34.8473.980.4

7,521.8

Q1/2001

1.641.7325


74,17484,712

158,8861,090

58,0455,526

63,5717,582

1,384

223,841

93,593

Negative grossreplacement

value31 March 2001

in CHF bn

74.837.42.4

16.32.6

133.5

Positive grossreplacement

value31 March 2001

in CHF bn

77.136.61.9

15.12.7

133.4

Nominalvalue


6,191.01,471.6

36.0448.898.7

8,246.1



Split of income statementbanking/insurance1)

Net interest income Net commission and service fee incomeNet trading incomeIncome from the insurance businessOther ordinary income/(expenses), net

Operating income

Personnel expenses Other operating expenses

Operating expenses


Depreciation and write-offs on non-current assetsAmortisation 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) Expenses due to the handling of both claims and investments are allocated to the income from the insurance business, of which for Q1/2001:

CHF 131 m (Q1/2000: CHF 125 m) are related to personnel expenses and for Q1/2001: CHF 80 m (Q1/2000: CHF 85 m) to other expenses.

Statement of shareholders’ equityTotal shareholders’ equity as of 1 January 2001Dividends paidCapital increases, par value and capital surplusChanges 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 31 March 2001

in CHF m

43,522(34481

928(1,841

471,428

44,099

)

)

2000in CHF m

30,6836

182(1,986

911(1

1900

Banking business TotalInsurance businessQ1/2001in CHF m

1,5144,8903,049

0217

9,670

5,4891,599

7,088

2,582

582160237

979

1,603

4(25

(449

1,133

(24

1,109

Q1/2000in CHF m

1,2203,8962,665

0 140

7,921

4,0501,070

5,120

2,801

19139

302

532

2,269

31) (68) (581

1,651

) (16

1,635

Q1/2001in CHF m

000

1,540(121

1,419

541354

895

524

93100

103

421

43) 0) (123

341

) (22

319

Q1/2000in CHF m

000

2) 1,356 ) (100

1,2562) 4782) 325

803

453

6370

70

383

00

) (78

305

) (25

280

Q1/2001in CHF m

1,5434,8863,049

2) 1,516) 97

11,0912) 6,0302) 1,954

7,984

3,107

674170238

1,082

2,025

47(25

) (572

1,475

) (47

1,428

Q1/2000in CHF m

1,2203,8962,6651,356

40

9,177

4,5281,396

5,924

3,253

25446

303

603

2,650

31) (68) (658

1,955

) (40

1,915

))

)

26

(2)237

5,785

43,522

air Valuew basis1)

ec. 1999n CHF m

16,59344,193

60,786

7,04822,199

29,247

2,2097,903

10,112

Investments from theinsurance businessNon-lifeDebt instrumentsEquity instrumentsReal estateMortgagesLoansShort-term investmentsNon-consolidated participations

Investment – non-life

LifeDebt instrumentsEquity 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 instrumentsTotal 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 amortised costs.

Market value31 Dec. 2000

in CHF m

17,4806,5292,176

47,58625,2488,182

65,06631,77710,358

n/an/a

n/a

FNe

31 Di

Market value31 March 2001

in CHF m

1) 18,2015,9902,236

1) 48,56923,5968,164

1) 66,77029,58610,400

Cost31 Dec. 2000

in CHF m

1) 17,1815,0251,882

1) 46,51019,1277,139

1) 63,69124,1529,021

Cost31 March 2001

in CHF m

17,8305,3281,932

47,20520,6137,184

65,03525,9419,116

)

Book value31 March 2001

in CHF m

18,201 5,9901,6281,873

1691,795

234

29,890

48,56923,5965,7917,8104,3791,793

161

92,099

9,4781,6171,148

132

12,375

104,474

66,77029,5867,419 9,6834,5483,588

395

121,989

12,375

134,364

(2,208

132,156

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

During the first quarter of 2001, CreditSuisse First Boston managed itstrading risks in a narrow range whileachieving strong trading returns. TheGroup’s asset quality remains solidwith a share of 80% of counterpartyexposure to investment grade orequivalently-rated counterparties (AAAto BBB). The overall level of impairedassets remains stable.

Trading exposures The average VaR at Credit Suisse FirstBoston in the first quarter of 2001 wasUSD 82.4 million. At the end of thequarter VaR was USD 83.8 million,slightly below the USD 84.1 millionrecorded at 31 December 2000. Asillustrated by the backtesting chart,Credit Suisse First Boston’s VaR hasremained in a narrow range since thethird quarter. No outlier (days when thetrading loss exceeds the respectiveVaR) occurred and trading returns werestrong.

Asset quality While the more challenging credit envi-ronment has led to a modest decreasein the share of investment grade orequivalently-rated counterparties relativeto the total amount of credit exposures,the overall level of impaired assetsremained stable during the first quarter,with a modest increase at Credit SuisseFirst Boston being compensated by adecrease at Credit Suisse Banking.

Sale of Winterthur International The disposal of the core businesses ofWinterthur International will reduce therisk profile of Winterthur Insurance, inparticular with respect to insurance risksrelated to natural hazards, large propertyand liability exposures, as well as creditrisks related to ceded reinsurance.Based on the Group’s internal EconomicRisk Capital (ERC) measure, theplanned disposal will reduce WinterthurInsurance’s ERC by approximately 10%.

28

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

Capital provisions against NPLs 2)

Counterparty exposure 1)

Coverage ratio of NPLs31.3.200131.12.2000NPLs as percentage of credit exposure31.3.200131.12.2000

1) Includes loans and loan equivalents.2) Excludes total interest of CHF 1,830 m (fully provided).

CreditSuisseGroup

31 March 2001 in CHF m

9,7305,997

422,879

62%63%

2.3%2.4%

113,4131,8198,889,7

CreditSuisse

FirstBoston


1,8041,088

251,602

60%67%

0.7%0.6%

4,1

113,5

201,9

CreditSuissePrivate

Banking31 March 2001

in CHF m

11068

40,285

62%54%

0.3%0.3%

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

Daily revenueOne-day VaR (99%)

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

CreditSuisse

FinancialServices


7,8164,841

130,992

62%62%

6.0%6.5%

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 historical simulation methodology. Diversification benefit reflects the net difference between thesum of the 99% percentile loss for each individual 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

in USD m

100

50

0

-50

-100

-150

-200

-250


INFORMATION FOR INVESTORS

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

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Also traded in

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1) 4 ADR = 1 registered share until 14.8.20011) 1 ADR = 1 registered share as of 15.8.2001

Swiss security number 146248 1213853 2)

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CUSIP number 225 401 108

2) New identification numbers for Credit Suisse Group registered shares with a par value of CHF 3, effective as of 15.8.2001.

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

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Enquiries

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Economy & Finance

credit-suisse Quarterly Review Q1/2001