C8 Bearth & Deplazes, Chalet à Rageth, Grisons, Suisse, 1999
.credit-suisse Annual Report Part 2 Financial report 1999 / 2000
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Transcript of .credit-suisse Annual Report Part 2 Financial report 1999 / 2000
FINANCIAL REPORT
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 49
Comments to the financial statements
Consolidated income statement
Consolidated balance sheet
Consolidated statement of sourceand application of funds
Consolidated off-balance sheet business
Notes to the consolidated financial statements
Report of the Group’s auditors
Income statement (parent company)
Balance sheet before allocation of retained earnings (parent company)
Notes to the financial statements (parent company)
Proposed allocation of retained earnings
Report of the statutory auditors
50
52
54
55
56
58
101
102
103
104
108
109
49
50
COMMENTS TO THE FINANCIAL STATEMENTS
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Credit Suisse Group’s Annual Report contains two sets of financial statements: the
consolidated annual financial statements of Credit Suisse Group at 31 December 1999
and the annual financial statements of Credit Suisse Group, parent company, for the
financial year ended 31 March 2000. Both sets of statements have been examined by
independent auditors. Their reports are presented on pages 101 and 109.
The consolidated financial statements include Credit Suisse First Boston, Credit Suisse,
Neue Aargauer Bank, the Private Banks, the financial subsidiaries of Credit Suisse
Group in Guernsey and Winterthur Insurance.
For the banking and financial businesses, the consolidated financial statements
were prepared pursuant to the accounting rules for banks; for the insurance business,
the accounting rules for insurance companies were applied. ‘Winterthur’ Swiss
Insurance Company (Winterthur) is included in the consolidated financial statements
using the ‘pooling of interests’ method. Significant information about insurance
operations is shown separately in the balance sheet and income statement.
The 1999 financial year Following organisational changes at Credit Suisse
First Boston, in April 1999 Credit Suisse Group repurchased Swiss Re’s 20% minority
position in Credit Suisse Financial Products.
Credit Suisse Group’s acquisition of Warburg Pincus Asset Management
(CHF 36 bn in assets under management) and of a 19.9% stake in the private equity
activities of Warburg, Pincus & Co became effective in July 1999.
In December, the BGP Banca di Gestione Patrimoniale SA, Lugano was founded
with share capital of CHF 50 m. The new private bank is a 100% direct subsidiary of
Credit Suisse Group. Business activities started in February 2000.
In December, Winterthur bought an additional 23% stake in DBV Winterthur
Holding AG, Wiesbaden, from Commerzbank. This stake is composed of a 15% share
held indirectly by Commerzbank through the intermediate WinCom holding and a direct
shareholding of 8%. Winterthur’s participation in DBV Winterthur Holding AG thus
increased to 69%. In the consolidated accounts, the change in equity capital held is
effective from 1 July 1999.
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 51
Of the CHF 446 m restructuring provisions available for the Focus project, BZW and
Winterthur at the start of the year, CHF 327 m was used in 1999. The resulting end
balance is CHF 119 m.
Provisions for technology costs declined by CHF 181 m from CHF 247 m at the
beginning of the year to CHF 66 m at the end. In 1999 CHF 96 m was booked
against the reserve specifically earmarked for costs associated with the Y2K date
change. This figure was CHF 163 m in 1998.
Subsequent events In the United Kingdom, Winterthur announced the acquisition of
the National Insurance and Guarantee Corp. Plc. (NIG), London in December. Together
with its subsidiaries, NIG’s gross written premiums for 1999 will amount to some
CHF 1.1 bn. NIG will be consolidated in the accounts as soon as regulatory approval is
obtained, probably in the first quarter of 2000.
In January, Winterthur Group anounced the acquisition of the Japanese life
insurance company, Nicos Life. In the current business year (ending March 2000),
Nicos Life is expected to achieve gross premiums of some CHF 447 m.
51
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 52
CONSOLIDATED INCOME STATEMENT
RESULT FROM INTEREST BUSINESS
Interest and discount income
Interest and dividend income from trading portfolios
Interest and dividend income from financialinvestments from banking business
Interest expenses from banking business
NET INTEREST INCOME
RESULT FROM COMMISSION AND SERVICE FEE BUSINESS
Commission income from lending business
Commission from securities and investment transactions
Commission from other services
Commission expenses
NET COMMISSION AND SERVICE FEE INCOME
NET TRADING INCOME
NET INCOME FROM INSURANCE BUSINESS
Premiums earned, net
Claims incurred and actuarial provisions
Commission expenses, net
Investment income from insurance business
NET INCOME FROM INSURANCE BUSINESS
OTHER ORDINARY INCOME
Income from the sale of financial investments
Income from investment activities
– of which from participations valued according to the equity method
– of which from other non-consolidated participations
Real estate income
Sundry ordinary income
Sundry ordinary expenses
OTHER ORDINARY INCOME
NET OPERATING INCOME
Changein %
–12
–26
54
–18
2
52
31
19
51
31
177
–1
–1
4
–3
– 6
–59
– 4
–10
21
18
109
2
–77
28
Changein CHF m
–2,327
–1,435
231
–3,631
100
202
2,493
63
215
2,543
4,200
–274
–275
82
–216
–297
–719
–5
–10
5
5
367
24
–376
6,170
1999in CHF m
16,953
4,127
656
16,484
5,252
594
10,523
393
640
10,870
6,578
26,203
27,120
2,157
8,134
5,060
505
124
95
29
33
703
1,255
110
27,870
1998in CHF m
19,280
5,562
425
20,115
5,152
392
8,030
330
425
8,327
2,378
26,477
27,395
2,075
8,350
5,357
1,224
129
105
24
28
336
1,231
486
21,700
Notes(p. 68 ff)
1, 2, 6
1, 2
1, 2, 7
1, 2, 9, 10
1, 2
52
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 53
NET OPERATING INCOME (continued)
Personnel expenses
Other operating expenses
TOTAL OPERATING EXPENSES
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets
Valuation adjustments, provisions and lossesfrom banking business
DEPRECIATION, VALUATION ADJUSTMENTS, LOSSES
GROUP PROFIT BEFORE EXTRAORDINARYITEMS AND TAXES
Extraordinary income
Extraordinary expenses
Taxes
GROUP PROFIT
Minority interests
NET PROFIT (AFTER MINORITY INTERESTS)
Changein %
28
28
17
24
38
59
–51
–33
133
– 94
–73
100
66
–20
70
Changein CHF m
6,170
2,923
756
3,679
2,491
388
–1,635
–1,247
3,738
–1,461
– 421
574
2,124
–29
2,153
1999in CHF m
27,870
13,509
5,229
18,738
9,132
1,045
1,540
2,585
6,547
93
152
1,149
5,339
118
5,221
1998in CHF m
21,700
10,586
4,473
15,059
6,641
657
3,175
3,832
2,809
1,554
573
575
3,215
147
3,068
Notes(p. 68 ff)
1, 2
1, 2
1
1, 8
1, 3
1, 4
1, 2
1
53
CONSOLIDATED BALANCE SHEET
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 54
ASSETS
Cash and other liquid assets
Money market claims
Due from banks
Claims from insurance business
Due from customers
Mortgages
Securities and precious metals trading portfolios
Financial investments from banking business
Investments from insurance business
Non-consolidated participations
Tangible fixed assets
Intangible assets
Accrued income and prepaid expenses
Other assets
TOTAL ASSETS
Total subordinated claims
Total due from non-consolidated participations
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities in respect of money market paper
Due to banks
Commitments from insurance business
Due to customers, in savings and investment accounts
Due to customers, other
Medium-term notes (cash bonds)
Bonds and mortgage-backed bonds
Accrued expenses and deferred income
Other liabilities
Valuation adjustments and provisions
Technical provisions for insurance business
Reserves for general banking risks
Share capital
Capital reserve
Revaluation reserves from insurance business
Retained earnings
Minority interests in shareholders’ equity
Group profit
– of which minority interests
Total shareholders’ equity
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
Total subordinated liabilities
Total liabilities due to non-consolidated participations
Changein %
36
9
18
–14
2
7
24
8
15
37
7
273
– 6
–14
11
– 41
309
50
29
–25
– 6
2
–34
7
27
– 8
51
11
4
1
6
17
172
–25
66
–20
22
11
10
4
Changein CHF m
828
2,400
24,749
–1,025
1,748
5,995
24,231
1,361
14,906
492
466
2,188
– 605
–7,425
70,309
–1,256
701
7,385
44,276
–2,144
–2,611
3,688
–1,959
2,952
3,138
– 4,427
2,896
10,909
83
62
703
1,035
2,748
–549
2,124
–29
6,206
70,309
1,670
31
31 Dec. 1999in CHF m
3,141
28,994
164,901
6,457
104,931
86,553
126,746
18,828
117,222
1,823
6,828
2,990
9,023
44,309
722,746
1,792
928
22,120
198,324
6,268
44,007
182,249
3,885
47,905
14,916
52,577
8,566
107,561
2,131
5,444
11,696
6,977
1,152
1,629
5,339
118
34,368
722,746
18,194
749
31 Dec. 1998in CHF m
2,313
26,594
140,152
7,482
103,183
80,558
102,515
17,467
102,316
1,331
6,362
802
9,628
51,734
652,437
3,048
227
14,735
154,048
8,412
46,618
178,561
5,844
44,953
11,778
57,004
5,670
96,652
2,048
5,382
10,993
5,942
–1,596
2,178
3,215
147
28,162
652,437
16,524
718
Notes(p. 68 ff)
33
12, 33
33
33
13, 14, 33
14, 33
15, 16, 33
17, 19, 33
18, 19
20, 21
21
21
23
24, 35, 36
33
33
33
33
33
33
27, 33
28
29
30
29, 31
31
31
31
31
31
31
31
31
35, 36
54
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 55
CONSOLIDATED STATEMENT OF SOURCE AND APPLICATION OF FUNDS
FROM OPERATIONS,EQUITY TRANSACTIONS AND INVESTMENTS
OPERATING ACTIVITIES
Net profit for the yearProvisions for credit and other risksLossesProvisions for taxesDepreciation and write-offsExtraordinary incomeExtraordinary expensesValuation of participations valued according to the equity methodAccrued income and prepaid expensesAccrued expenses and deferred income
EQUITY TRANSACTIONS
Share capitalCapital surplus and retained earningsDividends paidForeign exchange differencesMinority interests
INVESTMENTS IN LONG-TERM ASSETS
Investments in companies Real estateOther tangible and intangible fixed assets
FINANCIAL INVESTMENTS, PROVISIONS,OTHER ASSETS AND LIABILITIES
Investments from banking businessInvestments from insurance businessValuation adjustments and provisionsTechnical insurance provisions 1
Other assetsOther liabilities
FROM OTHER BALANCE SHEET ITEMS
ASSETS
Money market claimsDue from banksClaims from insurance businessDue from customersMortgages
LIABILITIES
Liabilities in respect of money market paperDue to banksCommitments from insurance businessDue to customersDue to customers, otherBonds and medium-term notes
CHANGE IN LIQUID ASSETS
Securities and precious metals trading portfoliosCash and accounts with central banks1 In line with insurance practice, the change in the technical provisions is shown as a total amount under changes in provisions affecting cashflow.2 The changes are affected to some extent by the changes to accounting principles described on pages 64/65.
1999Net
in/outflowin CHF m
8,399
12,749
787
– 4,085
–1,052
16,660
–34,927
51,587
25,059
Applicationin CHF m
1,488
105
209
1,457
363
1,430
1,450
8,929
3,108
1,164
2,581
1,058
3,265
26,188
1,915
17,010
2,013
Sourcein CHF m
3,215
2,584
101
575
681
462
101
60
1,922
64
514
42
5,424
5,144
5,626
40,234
2,215
2,367
1,311
1,091
1998Net
in/outflowin CHF m
1,186
5,917
226
– 874
– 4,083
–3,588
38,956
– 42,544
–2,402
Applicationin CHF m
32
95
1,430
644
386
152
3,547
1,361
14,906
4,427
2,401
24,953
2,320
6,278
2,144
2,611
24,231
828
Sourcein CHF m
5,339
1,421
78
1,149
1,045
101
605
3,138
62
1,486
1,313
1,020
10,909
7,713
1,025
7,385
44,276
3,688
993
2
2
2
2
55
CONSOLIDATED OFF-BALANCE SHEET BUSINESS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 56
CONTINGENT LIABILITIES
Credit guarantees in form of avals, guaranteesand 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
ANALYSIS OF COLLATERAL AS AT 31 DECEMBER 1999
CONTINGENT LIABILITIES
Credit guarantees in form of avals, guaranteesand 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
At 31 December 1998
IRREVOCABLE COMMITMENTS
At 31 December 1998
LIABILITIES FOR CALLS ON SHARES AND OTHER EQUITY
At 31 December 1998
CONFIRMED CREDITS
At 31 December 1998
FIDUCIARY TRANSACTIONS
Changein %
–24
18
45
4
–1
42
–15
–14
Changein CHF m
–2,115
791
999
160
–165
35,785
– 9
–36
31 Dec. 1999in CHF m
6,755
5,262
3,224
3,870
19,111
120,560
50
226
31 Dec. 1998in CHF m
8,870
4,471
2,225
3,710
19,276
84,775
59
262
Total in CHF m
6,755
5,262
3,224
3,870
19,111
19,276
120,560
84,775
50
59
226
262
Change in %
6
Withoutcollateral
in CHF m
398
2,785
3,008
2,690
8,881
9,178
61,377
40,940
50
59
225
262
Change in CHF m
2,155
Othercollateral
in CHF m
6,313
2,306
216
1,043
9,878
9,759
56,553
40,946
0
0
1
0
31 Dec. 1998in CHF m
35,216
Mortgagecollateral
in CHF m
44
171
0
137
352
339
2,630
2,889
0
0
0
0
31 Dec. 1999in CHF m
37,371
56
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 57
DERIVATIVE INSTRUMENTS
INTEREST RATE PRODUCTS
Forward rate agreements
Swaps
Options bought and sold (OTC)
Forwards
Futures
Options bought and sold (traded)
TOTAL INTEREST RATE PRODUCTS
FOREIGN EXCHANGE PRODUCTS
Forwards 1
Swaps 2
Options bought and sold (OTC)
Futures
Options bought and sold (traded)
TOTAL FOREIGN EXCHANGE PRODUCTS
PRECIOUS METALS PRODUCTS
Forwards 1
Options bought and sold (OTC)
Futures
Options bought and sold (traded)
TOTAL PRECIOUS METALS PRODUCTS
EQUITY/INDEX-RELATED PRODUCTS
Forwards
Options bought and sold (OTC)
Futures
Options bought and sold (traded)
TOTAL EQUITY/INDEX-RELATED PRODUCTS
OTHER PRODUCTS
Forwards
Options bought and sold (OTC)
Futures
Options bought and sold (traded)
TOTAL OTHER PRODUCTS
TOTAL, GROSS
TOTAL REPLACEMENT VALUESACCORDING TO THE BALANCE SHEET
1 including outstanding spot transactions2 cross-currency interest rate swaps3 positive replacement value after deduction of CHF 1.4 bn (1998: CHF 4.4 bn) of assets pledged as security4 No replacement values are shown for traded derivatives (futures and traded options) subject to daily margining requirements.
Total positive and negative replacement values on traded derivatives amount to CHF 1.1 bn and CHF 1.0 bn respectively.5 of which from insurance business: positive replacement values CHF 0.3 bn (1998 CHF 1.3 bn), negative replacement values CHF 0.4 bn (1998 CHF 0.6 bn)
31 Dec. 1999Negative gross
replacement value 4
in CHF bn
0.3
50.1
9.1
0.5
–
–
60.0
9.7
14.6
3.7
–
–
28.0
1.2
0.7
–
–
1.9
2.8
21.3
–
–
24.1
0.4
0.3
–
–
0.7
114.7
40.4
31 Dec. 1999Positive gross
replacementvalue 4
in CHF bn
0.3
52.7
8.6
0.6
–
–
62.2
10.5
10.8
3.9
–
–
25.2
1.5
0.6
–
–
2.1
2.5
20.2
–
–
22.7
0.5
0.3
–
–
0.8
113.0
37.3
31 Dec. 1999Nominal
valuein CHF bn
305.2
3,354.3
1,186.1
45.3
542.4
348.8
5,782.1
525.7
261.8
280.6
0.5
0.1
1,068.7
17.5
11.2
0.1
0.0
28.8
27.0
295.3
35.7
81.9
439.9
8.7
8.7
7.8
0.1
25.3
7,344.8
31 Dec. 1998Negative gross
replacementvalue
in CHF bn
0.1
60.3
8.8
0.3
–
–
69.5
16.9
11.6
6.1
–
–
34.6
1.1
0.9
–
–
2.0
0.6
14.7
–
–
15.3
0.0
0.1
–
–
0.1
121.5
49.2
31 Dec. 1998Positive gross
replacementvalue
in CHF bn
0.1
65.3
8.5
0.2
–
–
74.1
14.7
9.3
5.5
–
–
29.5
0.9
0.5
–
–
1.4
0.7
13.8
–
–
14.5
0.0
0.3
–
–
0.3
119.8
43.1
31 Dec. 1998Nominal
valuein CHF bn
152.7
2,383.1
914.1
54.0
539.2
633.8
4,676.9
782.2
247.4
342.3
1.5
0.3
1,373.7
18.8
15.4
0.2
0.4
34.8
8.2
191.4
38.6
63.2
301.4
0.1
4.0
8.5
0.1
12.7
6,399.5
3, 5 5 3, 5 5
57
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 58
GENERAL PRINCIPLES
The Group financial statements have been drawn up based on the accounting rules of
the Implementing Ordinance to the Swiss Federal Law on Banks and Savings Banks
of 14 December 1994 (status as at 28 October 1999), supplemented by the pooling-
of-interests method and the provisions of the Swiss accounting and reporting recom-
mendations with respect to insurance companies (FER 14). As required by the pooling-
of-interests method, the consolidated financial statements of Credit Suisse Group show
the combined results of Credit Suisse Group and Winterthur as if the merger had been
effective for all previous periods shown. In addition, the consolidation and valuation
policies reflect the accounting principles set out in the Swiss stock exchange listing
regulations; they also largely conform to the provisions of the 4th and 7th EU directives
and the EU directive governing the financial statements of banks. The financial year
for the Group ends on 31 December. Group companies with a different closing date
prepare interim financial statements as of 31 December for consolidation purposes.
Until the end of 1996, goodwill (the difference between the purchase price and the
amount of equity capital acquired) was set off against equity capital. For subsidiaries
acquired after 1 January 1997, goodwill is stated in the balance sheet under ‘Intangible
assets’ and amortised over its estimated useful life (not exceeding 20 years).
SCOPE AND METHOD OF CONSOLIDATION
All banking, insurance and financial institutions in which Credit Suisse Group has a
direct or an indirect interest of more than 50% as of the balance sheet date are fully
consolidated in the financial statements. For the ‘Winterthur’ Swiss Insurance Company
subgroup, capital is consolidated according to the pooling-of-interests method. For the
other Group companies capital is consolidated according to the purchase method with
effect from 1 January 1990 (or later, if acquired thereafter). Intercompany transactions
and unrealised gains therefrom are eliminated. Minority interests in shareholders’ equity
and net profit are indicated separately, but are viewed as forming an integral part of the
corporate base. Other companies in which the Group has a stake of 20% or more are
accounted for using the equity method. Long-term holdings which are designated for
resale are booked as ‘Financial investments’. Subsidiaries and long-term holdings out-
side the core business, and less significant holdings are not consolidated.
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 59
CHANGES TO THE SCOPE OF CONSOLIDATION
The scope of consolidation has undergone the following material changes:
Banking business
Credit Suisse Financial Products
In April 1999 Credit Suisse Group repurchased Swiss Re’s 20% minority position in
Credit Suisse Financial Products. The transaction is reflected in the consolidated
accounts with effect from 1 January 1999. In March 2000, the company was renamed
Credit Suisse First Boston International.
Warburg Pincus Asset Management
In July, the Credit Suisse Asset Management business unit (part of the Credit Suisse
First Boston legal entity) acquired 100% of Warburg Pincus Asset Management,
New York.
BGP Banca di Gestione Patrimoniale SA
In December, the BGP Banca di Gestione Patrimoniale SA, Lugano was founded
with share capital of CHF 50 m. The new private bank, which is a 100% direct sub-
sidiary of Credit Suisse Group, started its operations in February 2000.
Insurance business
DBV-Winterthur
In December, Winterthur bought an additional 23% stake in DBV Winterthur Holding AG,
Wiesbaden, from Commerzbank. This stake is composed of a 15% share held by
Commerzbank indirectly through the intermediate WinCom holding and a direct share-
holding that currently stands at 8%. Winterthur’s participation in DBV Winterthur
Holding AG thus increased to 69%. In Winterthur’s consolidated accounts, the change
in equity capital held is effective from 1 July 1999.
59
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 60
FOREIGN CURRENCY TRANSLATION
In the annual accounts of the individual Group companies, income and expense items
denominated in foreign currencies are translated into the relevant local reporting
currencies on the basis of the exchange rate as of the transaction date. Assets,
liabilities and off-balance-sheet items are translated using the year-end rate. Hedged
assets and liabilities are carried at their forward hedging rates. For the purposes of
consolidation, the balance sheets of foreign Group companies are translated into Swiss
francs using the year-end exchange rate, and their income statements are translated
using the average exchange rate for the financial year. Translation differences are cred-
ited or debited to shareholders’ equity and are shown separately in the statement of
shareholders’ equity.
The key foreign exchange rates are listed on page 100.
DEVIATIONS FROM THE RELEVANT EU DIRECTIVES
The Swiss accounting rules for banks conform in essence to EU directives and guide-
lines. The areas in which Group accounting policies deviate from the accounting prin-
ciples set out in the directives of the European Union (4th and 7th EU directives and
the EU directive governing the financial statements of banks) can be summarised as
follows:
– the classification criteria used in the balance sheet and the income statement differ
from those set out in the EU directive governing the financial statements of banks;
– the proportions of overall income and expenditure for operations outside Switzerland
are not detailed by geographical location but are provided as combined totals;
– no specific information is given concerning emoluments paid to and liabilities in
respect of Members of the Board of Directors or Members of the Executive Board of
Credit Suisse Group;
– securities and precious metals treated as trading positions are carried at their fair
value. Historical differences between cost and fair value are not disclosed in the
notes to the financial statements;
– there is no formal management report on the business year.
The following are significant deviations from the EU directives governing the financial
statements of insurance companies:
– the classification and presentation used in the financial statements have been adjust-
ed from those set out in the EU directives governing the financial statements of
insurance companies. Winterthur Group publishes an annual report which focuses on
the presentation of the results of the insurance business;
– unrealised gains on life business investments are taken to revaluation reserves as
part of shareholders’ equity and not to funds for future distribution to shareholders
and policyholders.
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 61
GENERAL ACCOUNTING AND VALUATION PRINCIPLES
Recording of business All completed business is recorded in the financial state-
ments as follows: foreign exchange, money market and precious metals transactions
are recorded on value (settlement) date. Prior to the value date, foreign exchange and
precious metals transactions are recorded as off-balance-sheet business. Securities
transactions are recorded on a trade date basis.
Repo business Reverse repurchase and repurchase transactions are shown in the
balance sheet as advances secured by securities or as deposits against which the
bank’s securities are pledged. Depending on the type of counterparty, they are shown
as claims on (‘Due from’) or liabilities to (‘Due to’) banks or customers. They are
carried in the balance sheet at the amounts at which the securities were initially
acquired or sold as specified by the respective agreements, plus interest accrued to
the balance sheet date.
Transactions involving non-monetary assets Securities borrowed and lent with
cash collateral and daily margining are included in the balance sheet corresponding to
the accounting treatment for repurchase and reverse repurchase agreements. Securities
borrowed and lent with non-monetary collateral and daily margining are recorded as a
combination of repurchase and reverse repurchase agreements. Securities borrowed
and lent against a fee are recorded in the balance sheet as inventory movement only
when the transferor relinquishes control over the securities. All other claims and liabilities
from transactions involving non-monetary assets (e.g. precious metals and commodities)
are marked to market and shown as claims on (‘Due from’) or liabilities to (‘Due to’)
banks or customers.
Cash, bank balances, money market paper and loans Receivables and liabilities
are generally accounted for at nominal value. Money market instruments held for trading
are carried at their fair value. The necessary provisions for recognisable risks and
potential losses are normally deducted from the appropriate asset items in the balance
sheet. Endangered interest and commission income due from customers and banks are
not booked as ‘Income from interest business’. Instead, they are only included in the
income statement following payment. Provisions for exposures subject to country risk,
default risk and other bank risks are booked to ‘Valuation adjustments and provisions’.
This position contains no undisclosed reserves.
Leasing All leased items (capital goods, vehicles and real estate) are valued using
the annuity method and are stated as a separate item under lendings. The depreciation
charges contained in the rental income are set off directly against the book values of
the corresponding leased assets, so that only the interest portion of the rental income is
shown in the income statement.
61
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 62
Real estate Real estate is valued at cost (including capital improvements) less depre-
ciation over its useful life (40 – 67 years). No depreciation is charged on land except
where valuation adjustments have been made to allow for a reduction in the market
value.
Other tangible fixed assets Other tangible fixed assets such as computers,
machinery, furnishings, vehicles and other equipment, as well as alterations and
improvements to rented premises, are depreciated using the straight line method
over their estimated useful life (in general 3–5 years).
Intangible assets The goodwill included in this balance sheet position arises from
the capital consolidation of the majority holdings acquired from 1 January 1997.
This goodwill is amortised over its estimated useful life (maximum 20 years). From
1 January 1999, third-party costs relating to the purchase and installation of software
are capitalised and depreciated over the estimated useful life of the software, normally
not exceeding 3 years.
Pension fund As a rule, employees are affiliated to legally autonomous staff pension
funds which are independent of the Group. The requisite contributions are made to the
pension funds and posted under ‘Personnel expenses’.
Taxes Tax expenses are calculated on the basis of the annual results posted in the
individual financial statements of the Group companies. Deferred tax assets and
liabilities are established for the expected future tax implications of temporary differ-
ences between the carrying amounts and the tax bases of assets and liabilities.
Deferred tax assets and liabilities calculated at the expected tax rate on the basis of
adjustments in the valuation of assets and liabilities for Group purposes are charged to
tax expenses and recorded as other assets or provisions. No provision is made for non-
recoverable withholding taxes on undistributed profits of Group companies. Deferred tax
assets arising from tax losses brought forward are similarly not recognised.
Claims and liabilities of related companies Claims and liabilities in respect of
related companies which are accounted for using the equity method and valued at cost
are reported in the notes to the consolidated financial statements.
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 63
VALUATION AND ACCOUNTING POLICIES IN RELATION
TO BANK-SPECIFIC POSITIONS
Securities trading portfolio The trading portfolio consists of holdings of readily
realisable securities, securities acquired as a result of underwriting activities and
holdings of precious metals. Securitised and non-securitised options are shown under
‘Other assets’.
Trading balances in bonds, shares and similar securities and precious metals
accounts and holdings are carried at fair value (amount for which an asset could be
exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s-
length transaction). Profits and losses from the valuation of the trading portfolio and
realised gains and losses on these positions are shown under ‘Income from trading’.
Interest and dividend income from the trading portfolio is credited to ‘Result from
interest business’.
Financial investments from banking business This balance sheet item comprises
securities and precious metals positions purchased as a long-term investment.
It also includes real estate and holdings assumed from the lending business and desig-
nated for resale.
Private equity positions (long-term equity financing of companies usually not listed
on a stock exchange) are valued at the lower of cost or market value.
Fixed-interest debt securities which are being held until final maturity are valued
according to the accrual method. In this case, premiums and discounts are accrued or
deferred over the term of the instrument until final maturity in the relevant balance
sheet position. Realised profits or losses which are interest related and which arise from
the early disposal or redemption of the instrument are accrued or deferred over the
remaining term of the instrument, i.e. to the original final maturity, and credited or
debited to ‘Result from interest business’ as appropriate.
Investment holdings of equities and debt securities which are designated for
resale and which do not constitute trading balances are valued at the lower of cost or
market value. The notes to the consolidated financial statements include details of both
the cost price and the market value of these holdings.
Capital gains resulting from the disposal of financial investments at above the
purchase price are shown under ‘Income from the disposal of financial investments’.
Unrealised losses on equity positions as a result of a decrease in their market value,
and unrealised profits which do not exceed the original result of changes in credit-
worthiness are accounted for in the same way as credit business.
Real estate assumed from lending business and designated for resale is valued
according to the lower of cost or market value.
63
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 64
Reserves for general banking risks Reserves for general banking risks are
precautionary reserves charged to ‘Extraordinary expenses’ to hedge against latent
risks in the bank’s operating activities. Releases are credited to extraordinary income.
Derivatives Forward rate agreements, futures, swaps, options, forward contracts and
other over-the-counter off-balance-sheet instruments held for trading purposes are
carried at their fair value and the resulting profits and losses are included in ‘Net trading
income’ in the income statement. The resulting replacement values are included in
‘Other assets’ or ‘Other liabilities’ as appropriate and are presented net by counterparty
for transactions in those products where the bank has a legal right to set off; otherwise
the replacement values are presented gross by contract.
Hedging transactions are valued using the same procedures as for the underlying
transactions they hedge.
Strategic positions are valued according to the lower of cost or market value.
Derivative financial instruments which are deployed in the context of interest rate risk
management are valued according to the accrual method. The interest component is
accrued or deferred over the term of the instrument according to the annuity method.
Realised profits or losses which are interest related and which arise from the early dis-
posal or redemption of the instrument are also accrued or deferred over the remaining
term of the instrument, i.e. to the original final maturity.
CHANGES TO ACCOUNTING PRINCIPLES
Intangible assets From 1 January 1999, third-party costs relating to the acquisition
and installation of software which meets the entity’s business needs alone are capi-
talised and depreciated over the estimated useful life, normally not exceeding 3 years.
Transactions involving non-monetary assets (SLB) Based on the changes in
accounting rules, securities lending and borrowing transactions are recorded as
described on page 61. Prior to 1999, the securities borrowed and lent in connection
with such transactions were recorded as inventory movements and corresponding
receivables and payables. Using the revised accounting rules, the 1998 figures for the
balance sheet items would have been as follows:
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 65
Balance sheet heading Disclosed Under new(in CHF m) amount policy
Due from banks 140,152 134,378
Due from customers 103,183 103,164
Securities and precious metals trading portfolio 102,515 98,386
Due to banks 154,048 158,439
Due to customers 178,561 164,247
VALUATION AND ACCOUNTING POLICIES IN RELATION
TO INSURANCE-SPECIFIC POSITIONS
INVESTMENTS IN RESPECT OF INSURANCE BUSINESS
Real estate Real estate is valued at market price. The market price of a property is
calculated at its capitalised rental income using the interest rate applied in the country
or market in question. Undeveloped plots of land and buildings under construction
are carried at cost.
Bonds and loans Bonds and loans are valued according to the amortised cost
method. The difference between the purchase price and the redemption value is dis-
tributed over the remaining life so that a constant yield is achieved. The corresponding
valuation adjustment is shown under the ‘Net investment income from insurance busi-
ness’ position. Default risk is accounted for through the use of write-offs. Inter-
company transactions and unrealised gains have been eliminated, with the exception
of assets booked as investments from insurance business.
Shares Listed shares are marked to market at year-end. Unlisted shares are valued
at cost. If the yield or intrinsic value is endangered, a valuation adjustment is made.
65
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 66
Derivatives Derivatives and other financial instruments are generally used to hedge
exposure to changes in the fair value of recognised assets, liabilities and firm
commitments. Any gains and losses are therefore recognised in the income statement
together with the offsetting loss or gain on the hedged item.
Investments for the benefit of life insurance policyholders who bear the
investment risk Investments for the benefit of life insurance policyholders who
bear the investment risk are carried at their market value.
Statement of higher and lower values arising from the uniform valuation of
investments in the Group accounts and revaluation reserves Higher or lower
values arising from the uniform valuation of investments in the Group accounts in com-
parison with the figures contained in the statutory accounts are recorded as follows:
valuation differences resulting from the revaluation of fixed-interest securities and mort-
gages, unlisted shares and non-consolidated long-term holdings are included in the
income statement (under ‘Net investment income from insurance business’).
In the case of listed shares and real estate, compensated write-offs in respect of the
difference between the balance sheet value in the statutory accounts and the cost value
are stated in the income statement (‘Net investment income from insurance business’).
Valuation differences between cost and market values are allocated to shareholders’
equity (‘Revaluation reserves from the insurance business’) directly, without affecting
the income statement, after deferred tax calculated on the basis of a full provision on
unrealised gains for which there is no contractual obligation to pay to policyholders upon
realisation.
Technical provisions The amount of the technical provisions is based on the expected
liabilities due to insured persons and claimants. As a rule, calculations are made
individually, i.e. depending on the insurance contract or claim. Statistical or mathematical
calculation methods are applied if these lead to approximately the same results and if
they conform to the methods approved by the supervisory authorities of the respective
countries. The equalisation reserves legally prescribed and locally created in some
countries are not included in the Group accounts. As a rule, provisions for claims out-
standing are not discounted. Technical provisions for life business are calculated
with regard to local regulations. The surplus due to policyholders is accounted for on
the basis of the resolutions passed by the individual companies as to the distribution
of profit.
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 67
CHANGES TO ACCOUNTING PRINCIPLES
In the reporting period, various companies in which Winterthur Group has a majority
interest (mainly finance and real estate companies) have been fully consolidated for the
first time. Only nominal investments outside the insurance sector are still consolidated
using the equity method or accounted for at cost.
Deferred taxes are calculated based on the current tax rates on unrealised capital gains
of the individual companies.
EVENTS SINCE THE BALANCE SHEET DATE
In January 2000, Winterthur Group acquired the Japanese life insurance company,
Nicos Life. In the current business year (ending March 2000), Nicos Life is expected to
achieve gross premiums of some CHF 447 m. Nicos Life will continue to operate as a
legally independent company under its present name. Winterthur assumed the opera-
tional management of the company on 31 March 2000.
67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 68
1 SPLIT OF INCOME STATEMENT INTO BANKINGAND INSURANCE BUSINESS
Net interest income
Net commission and service fee income
Net trading income
Net income from insurance business
Other ordinary income
NET OPERATING INCOME
Salaries and other remuneration
Employee benefits
Other personnel expenses
Personnel expenses
Premises and real estate expenses
Expenses for IT, machinery, furnishings,vehicles and other equipment
Sundry operating expenses
Other operating expenses
Total operating expenses
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets
Valuation adjustments, provisions and losses
Total depreciation, valuation adjustments, losses
GROUP PROFIT BEFORE EXTRAORDINARYITEMS AND TAXES
Extraordinary income
Extraordinary expenses
Taxes
GROUP PROFIT
Minority interests
NET PROFIT (AFTER MINORITY INTERESTS)
Expenses owing to the handling of both claims and investments are allocated to the income from insurance business.1 personnel expenses CHF 618 m (previous year CHF 510 m)2 other operating expenses CHF 487 m (previous year CHF 321 m)
1999in CHF m
5,252
10,870
6,578
5,060
110
27,870
11,556
1,201
752
13,509
933
1,102
3,194
5,229
18,738
9,132
1,045
1,540
2,585
6,547
93
152
1,149
5,339
118
5,221
1998in CHF m
5,152
8,327
2,378
5,357
486
21,700
8,919
1,005
662
10,586
885
921
2,667
4,473
15,059
6,641
657
3,175
3,832
2,809
1,554
573
575
3,215
147
3,068
1999in CHF m
0
0
0
5,060
– 467
4,593
1,225
293
237
1,755
202
249
752
1,203
2,958
1,635
116
0
116
1,519
0
0
340
1,179
90
1,089
1998in CHF m
0
0
0
5,357
– 900
4,457
1,332
325
224
1,881
213
137
826
1,176
3,057
1,400
90
0
90
1,310
543
0
371
1,482
111
1,371
1999in CHF m
5,252
10,870
6,578
0
577
23,277
10,331
908
515
11,754
731
853
2,442
4,026
15,780
7,497
929
1,540
2,469
5,028
93
152
809
4,160
28
4,132
1998in CHF m
5,152
8,327
2,378
0
1,386
17,243
7,587
680
438
8,705
672
784
1,841
3,297
12,002
5,241
567
3,175
3,742
1,499
1,011
573
204
1,733
36
1,697
Banking business Insurance business Total
1, 2 1, 2
2 2
1 1
68
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 69
2 INCOME AND EXPENSES FROMORDINARY ACTIVITIES BY ORIGIN
Net interest income
Net commission and service fee income
Net trading income
Income from insurance business
Other ordinary income
NET OPERATING INCOME
Personnel expenses
Other operating expenses
TOTAL OPERATING EXPENSES
GROSS OPERATING PROFIT BEFORE TAXES
% of total
Taxes
% of total
GROSS OPERATING PROFIT AFTER TAXES
% of total
3 ANALYSIS OF EXTRAORDINARY INCOME
Release of reserves for general banking risks
Gains from the disposal of participations
Other extraordinary income
TOTAL EXTRAORDINARY INCOME
4 ANALYSIS OF EXTRAORDINARY EXPENSES
Creation of reserves for general banking risks
World War II settlement
Other extraordinary expenses
TOTAL EXTRAORDINARY EXPENSES
1999 1998 ChangeAbroad
in CHF m
262
2,006
4,022
420
–230
6,480
2,701
486
3,187
3,293
467
2,826
Change in %
– 98
– 98
–10
– 94
Change in %
–
–100
–54
–73
Switzerland in CHF m
–162
537
178
–717
–146
–310
222
270
492
– 802
107
– 909
Changein CHF m
– 912
–542
–7
–1,461
Change in CHF m
98
– 459
– 60
– 421
Abroadin CHF m
2,606
6,645
5,207
2,844
–154
17,148
9,724
3,204
12,928
4,220
46%
768
67%
3,452
43%
Switzerlandin CHF m
2,646
4,225
1,371
2,216
264
10,722
3,785
2,025
5,810
4,912
54%
381
33%
4,531
57%
Abroadin CHF m
2,344
4,639
1,185
2,424
76
10,668
7,023
2,718
9,741
927
14%
301
52%
626
10%
1998in CHF m
933
553
68
1,554
1998in CHF m
3
459
111
573
Switzerlandin CHF m
2,808
3,688
1,193
2,933
410
11,032
3,563
1,755
5,318
5,714
86%
274
48%
5,440
90%
1999in CHF m
21
11
61
93
1999in CHF m
101
0
51
152
69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 70
5 INCOME STATEMENT FOR BANKING BUSINESS
NET INTEREST INCOME
RESULT FROM COMMISSION AND SERVICE FEE ACTIVITIES
Commission income from lending business
Commission from securities and investment transactions
Commission from other services
Commission expenses
NET COMMISSION AND SERVICE FEE INCOME
NET TRADING INCOME
OTHER ORDINARY INCOME
Income from the sale of financial investments
Income from investment activities
– of which from participations valued according to the equity method
– of which from other non-consolidated participations
Real estate income
Sundry ordinary income
Sundry ordinary expenses
OTHER ORDINARY INCOME
NET OPERATING INCOME
Personnel expenses
Other operating expenses
TOTAL OPERATING EXPENSES
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets
– of which on real estate
– of which on other tangible and intangible fixed assets
– of which on non-consolidated participations
Valuation adjustments, provisions and losses
DEPRECIATION, VALUATION ADJUSTMENTS, LOSSES
ANNUAL PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES
Extraordinary income
Extraordinary expenses
Taxes
ANNUAL PROFIT
Minority interests
NET PROFIT (AFTER MINORITY INTERESTS)
Change in %
2
52
31
19
51
31
177
–59
–24
–28
0
18
25
54
–58
35
35
22
31
43
64
6
75
–100
–51
–34
235
– 91
–73
297
140
–22
143
Changein CHF m
100
202
2,493
63
215
2,543
4,200
–719
–23
–23
0
5
81
153
– 809
6,034
3,049
729
3,778
2,256
362
5
362
–5
–1,635
–1 273
3,529
– 918
– 421
605
2,427
– 8
2,435
1999in CHF m
5,252
594
10,523
393
640
10,870
6,578
505
71
60
11
33
403
435
577
23,277
11,754
4,026
15,780
7,497
929
87
842
0
1,540
2,469
5,028
93
152
809
4,160
28
4,132
1998in CHF m
5,152
392
8,030
330
425
8,327
2,378
1,224
94
83
11
28
322
282
1,386
17,243
8,705
3,297
12,002
5,241
567
82
480
5
3,175
3,742
1,499
1,011
573
204
1,733
36
1,697
Notes
6
7
8
70
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 71
6 ANALYSIS OF THE RESULT FROM INTEREST BUSINESS
Interest and discount income
Interest income on claims due from customers
Interest income on claims due from banks
Interest income from money market claims
Credit commission treated as interest earnings
Interest income from leasing operations
Total interest and discount income
Interest and dividend income from trading portfolios
Interest income
Dividend income
Total interest and dividend income from trading portfolios
Interest and dividend income from financial investments
Interest income
Dividend income
Total interest and dividend income from financial investments
Interest expenses
Interest expenses for liabilities due to customers
Interest expenses for liabilities due to banks
Total interest expenses
– of which interest expenses for subordinated liabilities
TOTAL INTEREST INCOME
7 ANALYSIS OF TRADING INCOME
Income from securities and commodities trading
Income from foreign exchange and banknote trading
Income from precious metals trading
Income from trading in interest rate instruments
TOTAL TRADING INCOME
8 ANALYSIS OF VALUATION ADJUSTMENTS,PROVISIONS AND LOSSES
For default risks (credit and country risks)
For other business risks
Losses
– of which losses from lending business
VALUATION ADJUSTMENTS, PROVISIONS AND LOSSES
Change in %
–10
–14
–15
–36
25
–12
–32
36
–26
51
71
54
–16
–24
–18
32
2
Changein %
265
–
–30
– 47
177
Changein %
– 61
– 8
–23
–35
–51
Changein CHF m
–1,124
– 939
–145
–138
19
–2,327
–1,605
170
–1,435
176
55
231
–2,242
–1,389
–3,631
208
100
Changein CHF m
3,411
1,205
– 49
–367
4,200
Changein CHF m
–1,574
–38
–23
–18
–1,635
1999in CHF m
10,241
5,540
834
242
96
16,953
3,488
639
4,127
524
132
656
12,072
4,412
16,484
858
5,252
1999in CHF m
4,700
1,345
114
419
6,578
1999in CHF m
1,012
450
78
34
1,540
1998in CHF m
11,365
6,479
979
380
77
19,280
5,093
469
5,562
348
77
425
14,314
5,801
20,115
650
5,152
1998in CHF m
1,289
140
163
786
2,378
1998in CHF m
2,586
488
101
52
3,175
71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 72
9 INCOME STATEMENT FOR INSURANCE BUSINESS
NON-LIFE BUSINESS
Premiums written
Change in provisions for unearned premiumsand in actuarial provisions (health)
PREMIUMS EARNED
Claims and annuities paid
Change in provision for claims and annuities outstanding
CLAIMS INCURRED
Dividends paid
Change in provision for dividends
DIVIDENDS TO POLICYHOLDERS INCURRED
OPERATING EXPENSES
UNDERWRITING RESULT NON-LIFE
Net investment income
Interest on deposits and bank accounts (incl. exchange rate differences)
Other interest paid
Other income and expenses
PROFIT BEFORE TAXES AND MINORITY INTERESTS
LIFE BUSINESS
Premiums written
Change in provisions for unearned premiums
PREMIUMS EARNED
Claims paid
Change in provisions for claims outstanding
CLAIMS INCURRED
CHANGE IN ACTUARIAL PROVISIONS
Bonus allocation
Change in participation fund
ALLOCATION TO PARTICIPATION
OPERATING EXPENSES
Net investment income
Interest on deposits and bank accounts
Interest on bonuses credited to policyholders
Other interest paid
Other income and expenses (incl. exchange rate differences)
PROFIT BEFORE TAXES AND MINORITY INTERESTS
Change in %
3
27
3
9
– 64
3
48
–126
–7
–5
–22
–14
–50
–27
– 83
7
–3
–
– 4
10
–239
11
–13
0
–20
– 4
13
2
– 40
11
–28
–110
32
Changein CHF m
421
–122
299
–716
– 492
–224
–111
134
23
177
275
–319
–70
26
150
62
–503
–70
–573
–700
– 67
–767
1,171
– 5
77
72
–182
107
– 83
–13
85
320
137
1999in CHF m
12,678
–576
12,102
– 8,873
–271
– 9,144
–340
28
–312
–3,594
– 948
1,942
70
–72
–30
962
14,171
–70
14,101
–7,687
–39
–7,726
– 8,092
–1,546
–300
–1,846
–1,541
5,865
124
–130
–217
29
567
1998in CHF m
12,257
– 454
11,803
– 8,157
–763
– 8,920
–229
–106
–335
–3,771
–1,223
2,261
140
– 98
–180
900
14,674
0
14,674
– 6,987
28
– 6,959
– 9,263
–1,541
–377
–1,918
–1,359
5,758
207
–117
–302
–291
430
Notes
10
11
10
11
72
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 73
INCOME STATEMENT FOR INSURANCE BUSINESS (continued)
SUMMARY
Profit before taxes and minority interests (non-life business)Profit before taxes and minority interests (life business)
PROFIT BEFORE TAXES, MINORITY INTERESTS,EXTRAORDINARY EXPENSES AND INTEREST ON BONDS
Interest on convertible bonds and warrant issues, goodwillIncome from disposal of investments/business areasTaxes
ANNUAL PROFIT BEFORE MINORITY INTERESTS
Minority interests
ANNUAL PROFIT AFTER MINORITY INTERESTS
10 ANALYSIS OF DIRECT BUSINESS,GEOGRAPHICAL DISTRIBUTION
Europe
Non-life Life
EUROPE, TOTAL
North America
Non-life Life
NORTH AMERICA, TOTAL
Asia-Pacific
Non-life Life
ASIA-PACIFIC, TOTAL
Other regions
Non-lifeLife
OTHER REGIONS, TOTAL
DIRECT BUSINESS, GROSS, TOTAL
Reinsurance assumed, gross
Non-lifeLife
REINSURANCE ASSUMED, GROSS, TOTAL
TOTAL BUSINESS, GROSS
Reinsurance ceded
Non-life Life
REINSURANCE CEDED, TOTAL
Business, net
Non-life Life
TOTAL BUSINESS, NET
Home market, Switzerland
Non-life Life
HOME MARKET, SWITZERLAND, TOTAL
Changein %
7
32
15
– 50
100
– 8
–20
–19
–21
Changein %
3
–3
0
12
–100
12
8
74
26
– 9
0
– 9
1
–56
– 99
– 67
–1
–14
– 40
–17
3
–3
0
–2
–13
–10
Change in CHF m
62
137
199
10
–543
31
–303
21
–282
Changein CHF m
312
–370
–58
277
–5
272
18
63
81
– 4
0
– 4
291
– 403
–252
– 655
–364
221
61
282
421
–503
– 82
– 45
–1,134
–1,179
1999in CHF m
962567
1,529
–100
–340
1,179
– 90
1,089
1999in CHF m
10,76114,114
24,875
2,6270
2,627
243148
391
420
42
27,935
3202
322
28,257
–1,315– 93
–1,408
12,67814,171
26,849
2,8677,820
10,687
1998in CHF m
900
430
1,330
–20
543
–371
1,482
–111
1,371
1998in CHF m
10,449
14,484
24,933
2,350
5
2,355
225
85
310
46
0
46
27,644
723
254
977
28,621
–1,536
–154
–1,690
12,257
14,674
26,931
2,912
8,954
11,866
73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 74
11 ANALYSIS OF NET INVESTMENT INCOME
Real estateNon-lifeLife
REAL ESTATE, TOTAL
MortgagesNon-lifeLife
MORTGAGES, TOTAL
Bonds and loansNon-lifeLife
BONDS AND LOANS, TOTAL
SharesNon-lifeLife
SHARES, TOTAL
Non-consolidated participationsNon-lifeLife
NON-CONSOLIDATED PARTICIPATIONS, TOTAL
Short-term investmentsNon-lifeLife
SHORT-TERM INVESTMENTS, TOTAL
NON-LIFE
LIFE
INVESTMENT INCOME, TOTAL
Profits and losses on investmentsRealised gains on real estateRealised losses on real estateRealised gains/realised losses (–) on other investmentsDepreciation (–)/appreciation on investments
NON-LIFE
Realised gains on real estateRealised losses on real estate Realised gains/realised losses (–) on other investmentsDepreciation (–)/appreciation on investments
LIFE
PROFITS AND LOSSES ON INVESTMENTS, TOTAL
Investment incomeProfits and losses (–)Net investment income where the investment risk is borne by the policyholdersInvestment expensesNon-lifeLife
INVESTMENT EXPENSES, TOTAL
NON-LIFE
LIFE
NET INVESTMENT INCOME WHERE THE INVESTMENT RISKIS BORNE BY THE POLICYHOLDERS
NET INVESTMENT INCOME, TOTAL
Change in %
81
3
–55
4
–21
0
122143
137
200157
181
–11–17
–14
12
12
12
–59
– 48– 69
– 47
–14–100–52
–133
–35
–39
–3
316
180
62126
103
–14
– 6
180
–3
Changein CHF m
133
16
–321
18
–1517
2
160421
581
1811
29
– 6–10
–16
167
463
630
34–17
– 49634
– 445
–11
–1,188530
– 658
–1,103
–3
455
452
– 41–150
–191
–319
–345
452
–212
1999in CHF m
177393
570
58408
466
9352,625
3,560
291715
1,006
2718
45
5149
100
1,539
4,208
5,747
35– 46536–15
510
60
1,085132
1,223
1,733
104599
703
–107–269
–376
1,942
5,162
703
7,807
1998in CHF m
164
390
554
61387
448
9502,608
3,558
131294
425
97
16
5759
116
1,372
3,745
5,117
1–29
1,032– 49
955
7–1
2,273–398
1,881
2,836
107
144
251
– 66–119
–185
2,261
5,507
251
8,019
74
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 75
12 MONEY MARKET CLAIMS
Bills of exchange and money market paperrediscountable or pledgeable at central banks
– of which treasury bills
Other bills of exchange and money market paper
TOTAL MONEY MARKET CLAIMS
13 DUE FROM CUSTOMERS FROM LEASE FINANCING
Car leasing
Real estate leasing
Leasing of capital goods
TOTAL DUE FROM CUSTOMERS FROM LEASE FINANCING
14 ANALYSIS OF LOAN COLLATERAL AT 31 DECEMBER 1999
Due from customers
Mortgages
Residential properties
Business and office properties
Commercial and industrial properties
Other properties
TOTAL LOAN COLLATERAL
At 31 December 1998
15 SECURITIES AND PRECIOUS METALS TRADING PORTFOLIOS
Interest-bearing securities and rights
Listed on stock exchange
Unlisted
– of which own bonds and medium-term notes
Equities
– of which own shares
Precious metals
TOTAL SECURITIES AND PRECIOUS METALS TRADING PORTFOLIOS
– of which securities rediscountable or pledgeable at central banks
Substantial claims and liabilities included in other balance sheet positions.These are valued at fair value and any profit/loss on them is shown under trading income.
Lent trading positions (Due from banks and customers)
Borrowed trading positions (Due to banks and customers)
Positive replacement values of derivative instruments from trading activities (Other assets)
Negative replacement values of derivative instruments from trading activities (Other liabilities)
Change in %
–39
– 63
146
9
Change in %
15
68
43
41
Totalin CHF m
104,931
86,553
191,484
183,741
Change in %
16
20
9
–55
42
45
9
24
54
–100
– 87
–17
–18
Changein CHF m
–7,703
–10,215
10,103
2,400
Changein CHF m
55
198
391
644
Withoutcollateral
in CHF m
39,615
39,615
43,406
Changein CHF m
10,806
8,320
2,486
–182
13,266
1,048
159
24,231
15,111
– 44,959
–32,784
– 8,083
– 9,238
31 Dec. 1998in CHF m
19,669
16,243
6,925
26,594
31 Dec. 1998in CHF m
362
292
903
1,557
Othercollateral
in CHF m
59,452
59,452
53,581
31 Dec. 1998in CHF m
68,830
41,138
27,692
333
31,886
2,344
1,799
102,515
28,186
44,959
37,487
47,046
50,413
31 Dec. 1999in CHF m
11,966
6,028
17,028
28,994
31 Dec. 1999in CHF m
417
490
1,294
2,201
Mortgagecollateral
in CHF m
5,864
86,553
60,054
6,130
9,985
10,384
92,417
86,754
31 Dec. 1999in CHF m
79,636
49,458
30,178
151
45,152
3,392
1,958
126,746
43,297
0
4,703
38,963
41,175
75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 76
16 OWN SHARES INCLUDED IN SECURITIES TRADING PORTFOLIOS
In registered share equivalents, including derivatives
At beginning of financial year
At end of financial year
17 FINANCIAL INVESTMENTS FROM Book value Cost Market valueBANKING BUSINESS IN CHF M
Interest-bearing securities and rights
Listed on stock exchange
Unlisted
– of which valued according to the accrual method
– of which valued at lower of cost or market value
– of which own bonds and medium-term notes
Equities
– of which own shares
– of which qualifying participations
Precious metals
Real estate
TOTAL FINANCIAL INVESTMENTS FROMBANKING BUSINESS
– of which valued at lower of cost or market value
– of which securities rediscountable or– pledgeable at central banks
Borrowed financial investments 1
1 shown in the consolidated balance sheet as due to banks or customers
18 INVESTMENTS FROM INSURANCE BUSINESS
Real estate at market value
Non-life
Life
REAL ESTATE AT MARKET VALUE, TOTAL
Mortgages at redemption value
Non-life
Life
MORTGAGES AT REDEMPTION VALUE, TOTAL
Continued
1998in CHF m
108
92
31 Dec. 1998
–
–
–
–
3,812
–
7,201
–
–
8
1,783
–
12,804
–
–
Change in %
5
0
2
5
2
2
1998No. of shares
477,971
427,516
31 Dec. 1999
–
–
–
–
734
–
8,767
–
–
9
2,055
–
11,565
–
–
Changein CHF m
209
19
228
62
129
191
1999No. of shares
427,516
109,690
31 Dec. 1999
–
–
–
–
737
–
6,440
–
–
9
2,203
–
9,389
–
–
31 Dec. 1999in CHF m
4,176
8,839
13,015
1,336
7,454
8,790
21,805
1999in CHF m
92
36
31 Dec. 1998
–
–
–
–
3,878
–
4,793
–
–
8
1,924
–
10,603
–
–
31 Dec. 1998in CHF m
3,967
8,820
12,787
1,274
7,325
8,599
21,386
31 Dec. 1999
10,653
9,204
1,449
9,940
713
2
6,111
204
2,606
9
2,055
18,828
8,888
9,556
0
31 Dec. 1998
11,118
10,832
286
7,308
3,810
61
4,558
0
817
8
1,783
17,467
10,159
10,002
3,067
76
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 77
18 INVESTMENTS FROM INSURANCE BUSINESS
Continued
Bonds and loans at amortised cost
Non-life
Life
BONDS AND LOANS AT AMORTISED COST, TOTAL
Shares at market value
Non-life
Life
SHARES AT MARKET VALUE, TOTAL
Non-consolidated participations at cost
Non-life
Life
NON-CONSOLIDATED PARTICIPATIONS AT COST, TOTAL
Short-term investments at par value
Non-life
Life
SHORT-TERM INVESTMENTS AT PAR VALUE, TOTAL
Investments where the investment risk is borne by the policyholders
Real estate at market value
Bonds and loans at amortised cost
Shares at market value
Short-term investments at par value
INVESTMENTS WHERE THE INVESTMENTRISK IS BORNE BY THE POLICYHOLDERS, TOTAL
Less mortgages and non-consolidated participations not included in investments from insurance business
TOTAL INVESTMENTS FROM INSURANCE BUSINESS
ADDITIONAL DATA ON INVESTMENTS
Real estate at cost value
Non-life
Life
REAL ESTATE AT COST VALUE, TOTAL
Shares at cost value
Non-life
Life
SHARES AT COST VALUE, TOTAL
Bonds and loans at market value
Non-life
Life
BONDS AND LOANS AT MARKET VALUE, TOTAL
Change in %
11
10
10
33
35
34
–3
– 63
–26
–17
– 69
– 44
21
16
58
26
46
0
15
8
2
4
26
26
26
5
4
4
Changein CHF m
1,684
4,338
6,022
1,762
6,098
7,860
–10
–146
–156
–245
–1,069
–1,314
18
110
1,794
188
2,110
35
14,906
256
198
454
1,007
3,244
4,251
812
1,896
2,708
31 Dec. 1999in CHF m
21,805
16,592
48,477
65,069
7,137
23,621
30,758
347
87
434
1,201
477
1,678
104
788
4,912
898
6,702
9,224
117,222
3,580
8,251
11,831
4,874
15,761
20,635
16,596
48,736
65,332
31 Dec. 1998in CHF m
21,386
14,908
44,139
59,047
5,375
17,523
22,898
357
233
590
1,446
1,546
2,992
86
678
3,118
710
4,592
9,189
102,316
3,324
8,053
11,377
3,867
12,517
16,384
15,784
46,840
62,624
77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 78
19 OWN SHARES INCLUDED IN FINANCIAL INVESTMENTSFROM BANKING AND INSURANCE BUSINESS
Registered shares, at beginning of financial year
Additions (purchase price)
Disposals (selling price)
Registered shares, at end of financial year
20 NON-CONSOLIDATED PARTICIPATIONS
Participations valued according to the equity method
Other non-consolidated participations
TOTAL NON-CONSOLIDATED PARTICIPATIONS
With market value
Without market value
21 ANALYSIS OF CAPITALASSETS IN CHF M
Participations valued accordingto the equity method
Other non-consolidatedparticipations
Non-consolidated participations
Premises used by the bank
Other real estate
Real estate
Other tangible fixed assets
Intangible assets
TOTAL
22 ADDITIONAL INFORMATION ON FIXED ASSETS
Fire insurance value of real estate
Fire insurance value of other tangible fixed assets
Future leasing instalments from operational leasing
23 OTHER ASSETS
Positive replacement value of derivative instruments
– of which trading
– of which other
Compensation account
Deferred tax assets
Other
TOTAL OTHER ASSETS
1998in CHF m
18
4
16
5
Changein %
108
–37
37
–11
48
Change in %
5
32
56
Change in %
–16
–17
44
–100
59
–19
–14
1998No. of shares
189,208
14,827
182,710
21,325
Changein CHF m
736
–244
492
–27
519
Changein CHF m
737
767
52
Change in CHF m
–7,833
– 8,083
250
235
717
–544
–7,425
1999No. of shares
21,325
36,206
38,297
19,234
31 Dec. 1999in CHF m
1,415
408
1,823
223
1,600
31 Dec. 1999in CHF m
16,639
3,194
145
31 Dec. 1999in CHF m
39,780
38,963
817
235
1,935
2,359
44,309
1999in CHF m
5
10
10
6
31 Dec. 1998in CHF m
679
652
1,331
250
1,081
31 Dec. 1998in CHF m
15,902
2,427
93
31 Dec. 1998in CHF m
47,613
47,046
567
0
1,218
2,903
51,734
Bookvalue at31 Dec.
1998
679
652
1,331
3,811
491
4,302
2,060
802
8,495
Foreign ex-change diff.
and reclassifi-cations
186
39
225
44
10
54
95
171
545
Write-offs/depreciation
0
0
0
– 80
–7
– 87
–791
–167
–1,045
Disposals
–109
–15
–124
–17
– 48
– 65
–58
–55
–302
Additions
529
208
737
143
8
151
1,158
2,242
4,288
Change inscope of
consolidation
130
– 476
–346
1
11
12
–3
–3
–340
Write-offs/ accumulateddepreciation
–1
–5
– 6
– 664
– 47
–711
–1,617
–119
–2,453
Historicalvalue
680
657
1,337
4,475
538
5,013
3,677
921
10,948
Book value at31 Dec.
1999
1,415
408
1,823
3,902
465
4,367
2,461
2,990
11,641
78
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 79
24 ANALYSIS OF ASSETS BY COUNTRY/GROUPS OF COUNTRIES
SwitzerlandEU, Liechtenstein and EFTA– of which United Kingdom
GermanyFranceItalySpainLiechtensteinEFTA
USACanadaMexicoJapanAustraliaNew ZealandSouth AfricaFinancial centres outside industrialised countries– of which Hong Kong
SingaporeBahamasCayman Islands
Other Europe– of which Russia
Czech RepublicPolandHungary
Middle East countriesCentral and South America– of which Argentina
BrazilAsia-Pacific regionAfrica
TOTAL ASSETS
The above analysis is based on the location of assets and does not take any collateral or hedges through structured off-balance-sheet transactions into account. Market and credit risks can thereforenot be judged on the basis of the above schedule.
25 ASSETS PLEDGED OR ASSIGNED ANDASSETS SUBJECT TO OWNERSHIP RESERVATION
Assets pledged and assigned as collateralActual commitments secured
No assets were under reservation of ownership either in 1999 or in previous years.
26 LIABILITIES TO OWN PENSION FUNDS
TOTAL
31 Dec. 1999in %
27
34
13
8
2
3
1
~
~
26
~
~
5
1
~
~
3
~
1
~
1
1
~
~
~
~
1
1
~
1
1
~
100
31 Dec. 1998in CHF m
56,180
26,239
31 Dec. 1998 in %
1,238
31 Dec. 1999in CHF m
195,699
244,400
96,869
61,213
16,761
18,490
8,184
1,421
1,375
184,467
3,953
1,348
34,647
4,351
905
1,239
18,722
2,720
4,111
1,143
4,791
6,641
2,807
396
249
364
4,911
8,541
1,094
6,223
11,421
1,501
722,746
31 Dec. 1999in CHF m
82,678
73,344
31 Dec. 1999in CHF m
1,001
31 Dec. 1998in %
28
31
13
3
2
2
1
~
~
24
~
~
9
1
~
~
3
~
~
~
1
1
1
~
~
~
1
1
~
1
1
~
100
Changein %
47
180
Changein %
–19
31 Dec. 1998in CHF m
184,429
203,006
82,298
17,236
14,776
13,413
8,137
1,533
958
153,599
3,038
1,263
57,595
3,855
1,221
1,530
16,903
2,061
2,776
375
7,396
7,970
3,640
312
198
134
2,638
7,639
1,037
5,149
6,634
1,117
652,437
Changein CHF m
26,498
47,105
Changein CHF m
–237
79
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 80
27 OUTSTANDING BONDS ISSUED – SUMMARY
Bonds
Bonds issued by the central issuing office
Mortgage bonds issued by the central mortgage bond institutions
TOTAL OUTSTANDING BONDS ISSUED
27a BONDS ISSUED BY CREDIT SUISSE GROUP
Year Earliest date Par valueRedemption Interest rate of issue callable in m
23.02.2000 7.00% 1990 CHF 200
28.02.2000 2.25% Convertible bond 1997 CHF 400 1
06.08.2001 2.25% 1993 CHF 500 7
15.12.2003 6.00% 1994 CHF 250 1
31.10.2006 4.00% 1997 CHF 800
23.05.2007 4.00% 1997 CHF 1,000
15.09.2008 3.50% 1998 CHF 500
02.07.2009 3.50% 1999 CHF 500
27b BONDS ISSUED BY SUBSIDIARIES
Credit Suisse Group Finance (Guernsey) Ltd., Guernsey
24.02.2003 5.50% 1999 USD 250
17.02.2004 3.75% 1999 EUR 250
19.11.2002 4.88% Convertible bond 1992 USD 16 1
04.03.2004 2.50% 1999 CHF 250
29.07.2019 variable Floating rate notes 1999 EUR 400
All bonds issued by Credit Suisse Group Finance (Guernsey) Ltd. are guaranteed by Credit Suisse Group.
Credit Suisse First Boston, Zurich
31.01.2000 7.25% 1990 CHF 150 1
15.09.2000 4.50% 1995 CHF 250
15.10.2000 5.75% 1997 USD 1,997 2
05.06.2001 7.25% 1990 CHF 170
31.07.2001 7.00% 1991 CHF 150 1
15.10.2001 5.75% 1997 USD 1,497 2
15.01.2002 7.00% 1992 CHF 100 1
20.02.2002 7.50% 1991 CHF 200 1,6
30.03.2002 7.25% 1990 30.03.2000 CHF 150 1,6
15.05.2002 6.75% 1992 CHF 60
15.01.2003 7.75% 1991 CHF 100 1,6
15.01.2003 7.25% 1992 CHF 100 1,6
01.02.2003 5.00% 1988 01.02.2000 CHF 170 1,6
31.03.2003 3.50% 1993 CHF 200 1
25.04.2003 variable 1996 USD 75 3
29.09.2003 6.25% 1993 USD 200 1,3
18.11.2003 6.13% 1993 DEM 600 1,3
22.04.2004 4.38% 1996 CHF 200
Changein %
7
–35
10
7
Changein CHF m
2,850
– 40
142
2,952
31 Dec. 1998in CHF m
43,383
113
1,457
44,953
31 Dec. 1999in CHF m
46,233
73
1,599
47,905
80
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 81
BONDS ISSUED BY SUBSIDIARIES (continued) Year Earliest date Par valueRedemption Interest rate of issue callable in m
18.11.2004 8.50% 1994 USD 300 1,3
30.12.2004 6.13% 1994 DEM 100 1,3
02.02.2005 5.50% 1995 CHF 100 6
31.03.2005 5.75% 1995 CHF 225 1
13.11.2005 3.13% 1995 CHF 3001,6,7
17.11.2005 2.00% 1997 USD 100 3
10.11.2005 2.00% 1997 USD 200 3
30.06.2006 7.21% 1996 USD 238 1,4
30.06.2006 6.84% 1997 USD 95 1,4
perpetual 7.90% 1997 01.05.2007 USD 500 1,3
perpetual 6.50% 1997 12.06.2007 FRF 750 1,3
perpetual 6.50% 1997 12.06.2007 FRF 500 1,3
06.07.2007 5.25% 1995 CHF 150 1
06.07.2007 5.25% 1995 CHF 100 1
perpetual 4.38% 1997 23.07.2007 CHF 498 1,3
perpetual 7.74% 1997 10.07.2007 USD 100 1
08.02.2008 4.50% 1996 CHF 200 1,6
19.02.2008 2.00% 1998 USD 250 3
01.05.2008 6.50% 1998 USD 200 1,5
perpetual 8.25% 1997 10.07.2009 GBP 150 1,3
13.10.2009 6.25% 1999 EUR 225 1,3
15.12.2009 6.00% 1999 EUR 150 1,3
11.05.2010 5.75% 1998 DEM 415 1,3
29.06.2011 7.16% 1999 USD 125 1,4
22.10.2014 8.68% 1999 EUR 15 1,3
10.03.2016 5.00% 1986 10.03.2006 CHF 200 1
15.10.2019 7.15% 1999 EUR 12 1,3
03.01.2022 variable 1999 USD 5 1,3
30.12.2024 variable 1999 USD 24 1,3
02.01.2025 variable 1999 USD 15 1,3
02.01.2026 variable 1999 USD 20 1,3
30.12.2026 variable 1999 USD 46 1,3
30.12.2027 variable 1999 USD 19 1,3
03.01.2028 variable 1999 USD 40 1,3
perpetual 4.51% 1998 01.12.2028 JPY 10,000 1,3
15.10.2029 7.05% 1999 EUR 25 1,3
20.10.2029 9.35% 1999 EUR 25 1,3
Credit Suisse, Zurich
18.04.2000 7.25% 1990 CHF 110 1
20.02.2001 7.50% 1991 CHF 150 1
28.07.2001 5.00% 1994 CHF 200
17.09.2001 7.00% 1991 CHF 150 1
17.12.2001 2.75% 1993 CHF 125 1
16.03.2002 6.75% 1992 CHF 200
30.06.2002 7.25% 1992 CHF 100
25.09.2002 7.75% 1992 CHF 100 1
81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 82
BONDS ISSUED BY SUBSIDIARIES (continued) Year Earliest date Par valueRedemption Interest rate of issue callable in m
31.03.2003 5.25% 1993 CHF 250
28.04.2005 5.75% 1995 CHF 120 1
12.10.2005 5.00% 1995 CHF 150 1
05.01.2006 4.38% 1996 CHF 150 1
31.07.2009 4.00% 1997 CHF 200 1
12.11.2009 5.00% 1999 CHF 600 1
Neue Aargauer Bank, Aarau
28.06.2002 4.25% 1996 CHF 100
10.04.2000 7.13% Central issuing office of the Association of Swiss Regional Banks 1990 CHF 5 1
11.03.2001 7.25% Central issuing office of the Association of Swiss Regional Banks 1991 CHF 5 1
2000/2001 4.5%–7.6% Central issuing office of the Association of Swiss Regional Banks 1992/1993 CHF 63
2000 –2007 3.3%–7.4% Mortgage bonds issued by the Swiss Mortgage 1990 –1999 CHF 1,000Bond Bank, Zurich
Credit Suisse (Luxembourg) S.A., Luxembourg
31.12.2001 9.13% 1991 LUF 2,500 1
06.08.2003 7.25% 1993 LUF 1,500 1
Credit Suisse Guernsey Branch, Guernsey
perpetual 6.25% 1999 9.7.2009 EUR 125 1
Credit Suisse First Boston Finance (Guernsey) Ltd., Guernsey
20.02.2000 0.00% 1990 CAD 500
31.10.2002 0.00% 1992 DEM 500
Credit Suisse First Boston International (Guernsey) Ltd., Guernsey
20.03.2000 various 1999 USD 100
20.03.2000 various 1999 USD 15
20.03.2000 various 1999 USD 5
03.04.2000 5.93% 1998 USD 10
14.07.2000 various 1999 USD 100
02.10.2000 various 1999 USD 325
02.04.2001 4.34% 1998 DEM 10
02.04.2001 4.23% 1998 DEM 3
29.08.2003 2.67% 1998 CHF 19
Credit Suisse First Boston Finance B.V., Amsterdam
22.02.2000 7.50% 1992 NLG 350
15.06.2000 7.75% 1993 LUF 2,000 1
01.07.2003 6.07% 1993 LUF 3,000 1
perpetual 5.69% 1986 USD 150
26.05.2003 5.88% 1993 USD 200 1
25.08.2003 5.50% 1993 USD 200 1
82
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 83
BONDS ISSUED BY SUBSIDIARIES (continued) Year Earliest date Par valueRedemption Interest rate of issue callable in m
Credit Suisse First Boston (Cayman) Ltd., Cayman Islands
01.02.2000 variable 1998/1999 RUR 1,381
01.05.2000 variable 1999 RUR 174
01.07.2000 variable 1999 RUR 34
19.07.2000 10.00% 1997 USD 4
08.08.2000 10.00% 1997 USD 4
01.09.2000 variable 1998/1999 RUR 635
01.10.2000 variable 1998/1999 RUR 1,542
30.10.2000 variable 1997 USD 10
01.01.2001 variable 1998/1999 RUR 4,022
01.05.2001 variable 1998 USD 25
01.08.2001 variable 1998 RUR 670
01.09.2001 variable 1998/1999 RUR 3,333
01.12.2001 variable 1999 RUR 1,385
01.02.2002 variable 1999 RUR 518
01.03.2002 variable 1998 RUR 1
01.05.2002 variable 1999 RUR 462
01.06.2002 variable 1999 RUR 561
01.09.2002 variable 1999 RUR 417
01.10.2002 variable 1999 RUR 432
01.01.2003 variable 1999 RUR 610
01.02.2003 variable 1999 RUR 666
01.03.2003 variable 1998 RUR 2
01.05.2003 variable 1999 RUR 611
01.06.2003 variable 1999 RUR 569
01.09.2003 variable 1999 RUR 748
01.10.2003 variable 1999 RUR 424
01.01.2004 variable 1999 RUR 404
01.03.2004 variable 1998 RUR 67
01.03.2005 variable 1998 RUR 3
Credit Suisse First Boston Inc., New York
03.03.2000 6.15% 1993 USD 10
03.05.2000 5.60% 1995 DEM 147 1
15.09.2000 5.32% 1995 USD 25
01.10.2000 5.32% 1995 USD 35
01.10.2000 5.32% 1996 USD 15
02.11.2000 5.72% 1994 PTE 32 1
14.02.2001 5.92% 1996 DEM 136 1
26.03.2001 5.75% 1996 USD 5 1
17.04.2001 5.89% 1996 USD 20 1
30.04.2001 5.79% 1992 USD 200 1
06.06.2001 5.79% 1994 USD 52 1
08.08.2001 5.68% 1996 USD 2 1
08.08.2001 5.88% 1996 USD 10 1
16.08.2001 5.76% 1995 FRF 156
83
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 84
BONDS ISSUED BY SUBSIDIARIES (continued) Year Earliest date Par valueRedemption Interest rate of issue callable in m
01.08.2002 6.07% 1994 USD 5 1
03.09.2002 7.83% 1992 USD 3
15.01.2003 6.54% 1993 USD 5 1
03.02.2003 6.50% 1993 USD 5 1
10.02.2003 6.45% 1993 USD 35
07.04.2003 6.07% 1992 USD 7
27.04.2003 5.69% 1993 USD 17 1
27.04.2003 5.50% 1996 USD 2
20.02.2004 6.08% 1994 USD 150 1
08.03.2004 8.95% 1992 USD 22
09.03.2004 8.75% 1992 USD 40
15.03.2004 5.71% 1994 USD 165 1
05.04.2004 5.96% 1995 DEM 107 1
30.04.2004 9.30% 1992 USD 100
27.10.2005 5.60% 1993 USD 200 1
07.11.2005 6.95% 1995 USD 5 1
15.05.2006 6.09% 1996 USD 269 1
27.02.2007 5.98% 1995 USD 15 1
27.02.2007 5.95% 1995 USD 15 1
28.02.2007 5.98% 1995 USD 15 1
28.02.2007 5.95% 1995 USD 15 1
15.02.2013 8.50% 1993 USD 3
02.04.2018 7.71% 1993 USD 5 1
various variable 1993 USD 154 1
various variable 1993–1998 USD 36 1
various variable 1995/1996 USD 45 1
Credit Suisse First Boston International, London
2000 various 1997/1998 DEM 41
15.08.2000 variable 1999 EUR 6
21.12.2000 3.00% 1995 FIM 25
2000 various 1997–1999 GBP 42
2000 various 1999 HKD 2,851
2000 various 1997/1998 ITL 109,000
2000 various 1995 –1999 JPY 23,293
2000 0.00% 1994 –1998 NLG 67
2000 variable 1997/1998 PTE 6,750
2000 various 1998 SEK 197
2000 various 1992–1999 USD 380
13.06.2001 6.50% 1997 BEF 100
2001 various 1996 –1998 DEM 100
2001 various 1994 –1999 EUR 18
28.01.2001 0.00% 1999 HKD 30
2001 various 1997/1998 ITL 125,000
2001 various 1995 –1999 JPY 16,817
24.09.2001 0.00% 1998 NLG 18
01.10.2001 various 1998 PTE 1,500
84
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 85
BONDS ISSUED BY SUBSIDIARIES (continued) Year Earliest date Par valueRedemption Interest rate of issue callable in m
01.02.2001 various 1998 SEK 150
2001 various 1995 –1999 USD 652
15.08.2001 variable 1991 USD 109 1
31.10.2002 variable 1997 CHF 75 1
2002 various 1996 –1998 DEM 70
30.07.2002 0.00% 1997 EUR 10
19.12.2002 0.00% 1997 ITL 20,000 1
2002 various 1996 –1999 JPY 74,230
2002 various 1992 LUF 3,500 1
2002 various 1996 –1999 USD 153
01.08.2003 various 1998 ATS 400
13.06.2003 8.00% 1997 BEF 200
31.03.2003 5.20% 1998 EUR 7
06.11.2003 0.00% 1995 FRF 25
2003 various 1997/1998 GBP 39
16.04.2003 0.00% 1998 GRD 14,393
2003 various 1997/1998 ITL 139,000
2003 various 1997–1999 JPY 4,700
19.03.2003 7.63% 1993 LUF 1,500 1
2003 various 1995 –1998 USD 532
01.12.2004 0.00% 1994 CHF 13 1
2004 variable 1997 DEM 25
16.06.2004 8.50% 1997 EUR 3
01.12.2004 0.00% 1994 EUR 10 1
15.02.2004 variable 1999 GBP 5
2004 various 1997/1998 ITL 441,000
2004 0.00% 1997/1998 ITL 105,000 1
2004 various 1995 –1998 JPY 4,500
07.02.2004 0.00% 1997 NOK 70
2004 various 1996 –1998 USD 201
08.06.2005 8.25% 1995 BEF 200 1
27.09.2005 variable 1995 DEM 47 1
08.12.2005 0.00% 1997 FRF 200
2005 various 1997/1998 ITL 457,000
2005 various 1997/1998 ITL 70,000 1
2005 various 1996/1997 JPY 4,000
26.04.2005 variable 1998 PTE 500
2005 0.00% 1997 PTE 9,362 1
2005 various 1995 –1998 USD 1,286
2005 variable 1996 –1998 DEM 19 1
06.11.2006 0.00% 1997 FIM 50
16.02.2006 9.13% 1998 GBP 5
2006 various 1998 ITL 331,200
2006 0.00% 1998 ITL 10,020 1
19.12.2006 5.70% 1996 JPY 500
2006 various 1995 –1998 USD 108
28.07.2006 0.00% 1994 USD 40 1
85
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 86
BONDS ISSUED BY SUBSIDIARIES (continued) Year Earliest date Par valueRedemption Interest rate of issue callable in m
2007 various 1996/1997 CHF 120
2007 various 1997 DEM 70
23.05.2007 variable 1997 DEM 80 1
06.11.2007 0.00% 1997 FIM 50
2007 various 1997 ITL 103,600
2007 various 1996/1997 JPY 5,000
2007 various 1997/1998 USD 164
02.07.2007 variable 1997 USD 40 1
2008 various 1998 DEM 155
2008 0.00% 1993/1994 DEM 153 1
2008 0.00% 1998 ITL 68,000
24.02.2008 variable 1998 ITL 100,000 1
2008 various 1997/1998 JPY 1,200
02.06.2008 variable 1998 PTE 500
2008 various 1995 –1998 USD 261
2009 various 1997/1998 DEM 108
2009 0.00% 1994 –1996 DEM 213 1
24.08.2009 variable 1999 EUR 15
30.05.2009 variable 1997 ITL 17,000
2009 various 1996/1997 JPY 3,100
2009 various 1997/1998 USD 18
06.01.2010 0.00% 1997 DEM 20
20.06.2010 0.00% 1997 DEM 60 1
18.10.2010 0.00% 1998 ITL 27,500
01.03.2010 0.00% 1995 ITL 30,000 1
2010 various 1997/1998 USD 109
2011 various 1993–1999 USD 74
04.06.2012 0.00% 1997 DEM 15
24.03.2012 various 1999 EUR 9
01.04.2012 variable 1998 ITL 12,000
30.04.2012 8.00% 1998 ITL 20,000 1
2012 various 1997/1998 USD 6
02.04.2013 variable 1998 ITL 27,500
2013 various 1998 JPY 13,600
20.12.2014 0.00% 1994 ITL 250,000 1
30.10.2014 0.00% 1995 USD 29
22.09.2016 variable 1998 USD 9
15.09.2017 0.00% 1997 DEM 15
15.05.2017 variable 1997 JPY 5,000
01.09.2017 0.00% 1997 PTE 1,700
16.02.2018 6.00% 1998 DEM 30 1
2018 variable 1997/1998 ITL 74,000
2018 various 1998 JPY 1,800
07.01.2020 variable 1996 CAD 162
19.09.2021 variable 1996 JPY 10,000
15.12.2021 0.00% 1995 USD 81 1
02.10.2022 0.00% 1997 DEM 40
86
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 87
BONDS ISSUED BY SUBSIDIARIES (continued) Year Earliest date Par valueRedemption Interest rate of issue callable in m
27.02.2025 0.00% 1998 USD 20
14.12.2028 10.76% 1998 USD 133
perpetual various 1995 –1998 CHF 130 1
perpetual various 1998 DEM 610 1
perpetual 10.25% 1995 GBP 100 1
perpetual variable 1998 ITL 50,000 1
perpetual variable 1993–1995 JPY 20,000 1
perpetual various 1995 –1997 NLG 60,000 1
perpetual 0.00% 1998 PTE 1,650 1
perpetual variable 1992–1997 USD 220 1
Bank Leu Ltd., Zurich
17.11.2006 5.00% 1986 CHF 100 1
Guaranteed by Credit Suisse Group
DBV-Winterthur, Wiesbaden
28.07.2003 0.88% Convertible bonds 1998 DEM 100
28.07.2003 0.75% Convertible bonds 1998 DEM 100
1 subordinated bonds2 credit-linked notes issued by Credit Suisse First Boston Guernsey branch3 issued by Credit Suisse First Boston London branch4 issued by Credit Suisse First Boston Nassau branch5 issued by Credit Suisse First Boston New York branch6 this bond has been partially or fully transferred to Credit Suisse as a subparticipation7 issue of bonds with warrants: ex warrant
87
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 88
28 OTHER LIABILITIES
Negative replacement value of derivative instruments
– of which trading
– of which other
Compensation account
Other
TOTAL OTHER LIABILITIES
29 VALUATION ADJUSTMENTS ANDPROVISIONS/RESERVES FORGENERAL BANKING RISKS IN CHF M
Valuation adjustments and provisions for default risks (credit and country risk)
Valuation adjustments and provisions for other business risks
Provisions for taxes and deferred taxes
Provisions for restructuring
Other provisions
Total
Less valuation adjustments directlynetted with assets
TOTAL VALUATION ADJUSTMENTS ANDPROVISIONS AS PER BALANCE SHEET
RESERVES FOR GENERALBANKING RISKS
1 The increase in deferred tax assets (CHF 287) is not included in provisions for taxes and deferred taxes.2 change owing to deferred taxes on unrealised gains on investments from the insurance business
Change in %
–18
–18
70
–100
78
– 8
Change in CHF m
– 9,050
– 9,238
188
–189
4,812
– 4,427
31 Dec. 1999 in CHF m
41,632
41,175
457
0
10,945
52,577
31 Dec. 1998 in CHF m
50,682
50,413
269
189
6,133
57,004
Balance at31 Dec.
1998
13,834
878
2,996
483
787
18,978
–13,308
5,670
2,048
Newcreationchargedto equity
–
–
2,381
–
–
2,381
–
Newcreation
charged toincome
statement
1,012
211
1,436
47
151
2,857
80
Changein the
scope ofcon-
solidation
0
0
0
0
0
0
0
Recoveries,endangered
interest,currency
differences
921
88
418
19
32
1,478
0
Change indefinition of
purpose(reclassifi-
cation
118
–39
–2
32
– 85
24
3
Specificusage and
releases
–2,843
–189
– 977
–342
–309
– 4,660
0
Balance at31 Dec.
1999
13,042
949
6,252
239
576
21,058
–12,492
8,566
2,131
1 2
88
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 89
30 TECHNICAL PROVISIONS FORINSURANCE BUSINESS IN CHF M
NON-LIFE
Provision for unearned premiums
Actuarial provisions (health)
Provisions for claims outstanding
Actuarial provision for annuities
Provision for dividends to policyholders
TOTAL NON-LIFE
LIFE
Provisions for unearned premiums
Actuarial provisions
Provisions for claims outstanding
Participation fund
Bonuses left on deposit
TOTAL LIFE
Technical provisions in life business where the investment risk is borne by the policyholders
TOTAL TECHNICAL PROVISIONS FORINSURANCE BUSINESS
Change net
62
731
669
144
–28
1,578
65
6,655
6
304
231
7,261
2,070
10,909
Change gross
–313
671
–198
143
–27
276
75
6,190
–14
304
231
6,786
2,070
9,131
31 Dec. 1999net
3,598
3,103
14,710
832
798
23,041
850
70,078
394
2,822
3,652
77,796
6,724
107,561
31 Dec. 1999gross
4,204
3,103
17,300
839
799
26,245
879
70,607
399
2,824
3,652
78,361
6,724
111,329
31 Dec. 1998net
3,536
2,372
14,041
688
826
21,463
785
63,423
388
2,518
3,421
70,535
4,654
96,652
31 Dec. 1998gross
4,517
2,432
17,498
696
826
25,969
804
64,417
413
2,520
3,421
71,575
4,654
102,198
89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 90
31 STATEMENT OF SHAREHOLDERS’ EQUITY
SHAREHOLDERS’ EQUITY AT BEGINNING OF FINANCIAL YEAR
Share capital
Capital reserve
Retained earnings
Revaluation reserves from insurance business
Reserves for general banking risks
Group profit
TOTAL SHAREHOLDERS’ EQUITY AT BEGINNING OF FINANCIAL YEAR
Reclassification from valuation adjustments and provisions
Release/creation of reserves for general banking risks, net
Dividends paid
Capital increases, par value and capital surplus
Capital increases, minority interests
Acquisition of minority interests
Changes in scope of consolidation affecting minority interests
Consolidation of previously not fully consolidated subsidiaries
Foreign exchange differences
Change in revaluation reserves from insurance business, net
Group profit
TOTAL SHAREHOLDERS’ EQUITY AT END OF FINANCIAL YEAR
Of which: share capital
capital reserve
minority interests in capital reserve
retained earnings
minority interests in retained earnings
revaluation reserves from insurance business
minority interests in insurance revaluation reserves
reserves for own shares
reserves for general banking risks
Group profit
– of which minority interests
32 LOANS TO THE BANK’S GOVERNING BODIES
Loans to the bank’s governing bodies
Loans to the bank’s governing bodies comprise advances to members of the Board of Directors, the Executive Board and the Statutory Auditors.
Change in %
1
18
–122
15
–29
435
10
– 97
109
2
–23
50
–
–
–
484
6
66
22
1
6
– 91
125
–18
17
–17
0
4
66
–20
Changein %
33
Changein CHF m
60
1,739
–1,932
872
– 842
2,614
2,511
– 87
1,010
27
–232
1
–1,014
226
–71
1,655
56
2,124
6,206
62
703
–196
2,748
–230
1,035
–123
0
83
2,124
–29
Changein CHF m
15
1999in CHF m
5,382
11,209
–352
6,660
2,048
3,215
28,162
3
80
–1,430
759
3
–1,015
226
–71
1,313
999
5,339
34,368
5,444
11,696
20
552
1,014
6,977
595
600
2,131
5,339
118
31 Dec. 1999in CHF m
61
1998in CHF m
5,322
9,470
1,580
5,788
2,890
601
25,651
90
– 930
–1,457
991
2
–1
0
0
–342
943
3,215
28,162
5,382
10,993
216
–2,196
1,244
5,942
718
600
2,048
3,215
147
31 Dec. 1998in CHF m
46
90
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 91
33 MATURITY STRUCTURE OFCURRENT ASSETS, FINANCIALINVESTMENTS AND BORROWED FUNDSAT 31 DECEMBER 1999 IN CHF M
CURRENT ASSETS
Cash and other liquid assets
Money market claims
Due from banks
Claims from insurance business
Due from customers
Mortgages
Securities and precious metalstrading portfolios
TOTAL CURRENT ASSETS
At 31 December 1998
TOTAL FINANCIAL INVESTMENTS 1
At 31 December 1998
BORROWED FUNDS
Liabilities in respect of money market paper
Due to banks
Commitments from insurance business
Due to customers, in savings andinvestment accounts
Due to customers, other
Medium-term notes
Bonds and mortgage-backed bonds
TOTAL BORROWED FUNDS
At 31 December 19981 excluding investments from insurance business
34 SECURITIES LENDING AND BORROWING AND REPURCHASE AGREEMENTS
Due from banks
Due from customers
SECURITIES LENDING
Due from banks
Due from customers
REVERSE REPURCHASE AGREEMENTS
Due to banks
Due to customers
SECURITIES BORROWING
Due to banks
Due to customers
REPURCHASE AGREEMENTS
Total
3,141
28,994
164,901
6,457
104,931
86,553
126,746
521,723
462,797
18,828
17,467
22,120
198,324
6,268
44,007
182,249
3,885
47,905
504,758
453,171
No maturity
2,054
1,783
Dueafter
5 years
–
0
2,593
0
6,340
1,115
–
10,048
7 ,842
1,208
1,932
0
4,812
0
46
3,731
97
20,636
29,322
21,079
Due within12 monthsto 5 years
–
10
2,120
0
8,788
32,102
–
43,020
43,121
6,937
3,361
1,410
2,009
0
17
6,323
2,128
17,957
29,844
35,890
Duewithin 3 to12 months
–
5,661
4,239
0
16,872
21,284
–
48,056
37,768
1,188
2,012
2,491
6,765
0
3
11,183
1,169
5,972
27,583
26,424
Duewithin 3months
–
23,312
145,507
0
50,868
12,334
–
232,021
210,564
1,300
3,813
18,219
99,041
0
8
102,803
491
2,660
223,222
220,851
Redeemableby notice
–
11
2,160
6,457
22,063
19,718
–
50,409
51,614
21
14
0
5,848
6,268
43,933
12,282
–
680
69,011
58,036
At sight
3,141
0
8,282
0
0
0
126,746
138,169
111,888
6,120
4,552
0
79,849
0
0
45,927
–
–
125,776
90,891
Change in %
–100
– 99
–100
193
53
152
– 85
– 95
– 89
63
60
61
Changein CHF m
–34,300
–11,687
– 45,987
84,596
9,670
94,266
–25,424
–14,883
– 40,307
24,274
12,561
36,835
31 Dec. 1999in CHF m
49
136
185
128,536
27,932
156,468
4,327
709
5,036
63,093
33,641
96,734
31 Dec. 1998in CHF m
34,349
11,823
46,172
43,940
18,262
62,202
29,751
15,592
45,343
38,819
21,080
59,899
91
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 92
35 BALANCE SHEET BY ORIGIN IN CHF M
ASSETS
Cash and other liquid assets
Money market claims
Due from banks
Claims from insurance business
Due from customers
Mortgages
Securities and precious metals trading portfolios
Financial investments from banking business
Investments from insurance business
Non-consolidated participations
Tangible fixed assets
Intangible assets
Accrued income and prepaid expenses
Other assets
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities in respect of money market paper
Due to banks
Commitments from insurance business
Due to customers, in savings and investment accounts
Due to customers, other
Medium-term notes
Bonds and mortgage-backed bonds
Accrued expenses and deferred income
Other liabilities
Valuation adjustments and provisions
Technical provisions for insurance business
Shareholders’ equity (excluding minority interests)
Minority interests
TOTAL LIABILITIES
Abroad Change
324
898
25,685
155
–3,003
22
26,622
1,599
9,365
661
738
2,193
–731
–5,489
59,039
7,378
24,867
443
–192
10,172
0
2,197
2,632
–7,151
2,606
6,110
4,835
–586
53,311
Switzerland Change
504
1,502
– 936
–1,180
4,751
5,973
–2,391
–238
5,541
–169
–272
–5
126
–1,936
11,270
7
19,409
–2,587
–2,419
– 6,484
–1,959
755
506
2,724
290
4,799
1,949
8
16,998
Abroad 31 Dec. 1998
249
23,884
136,793
4,125
77,638
11,836
91,029
13,525
53,131
725
2,084
751
8,006
44,232
468,008
14,186
130,130
2,880
4,295
120,227
0
33,102
8,564
48,802
2,656
49,098
11,641
2,269
427,850
Switzerland31 Dec. 1998
2,064
2,710
3,359
3,357
25,545
68,722
11,486
3,942
49,185
606
4,278
51
1,622
7,502
184,429
549
23,918
5,532
42,323
58,334
5,844
11,851
3,214
8,202
3,014
47,554
14,196
56
224,587
Abroad 31 Dec. 1999
573
24,782
162,478
4,280
74,635
11,858
117,651
15,124
62,496
1,386
2,822
2,944
7,275
38,743
527,047
21,564
154,997
3,323
4,103
130,399
0
35,299
11,196
41,651
5,262
55,208
16,476
1,683
481,161
Switzerland31 Dec. 1999
2,568
4,212
2,423
2,177
30,296
74,695
9,095
3,704
54,726
437
4,006
46
1,748
5,566
195,699
556
43,327
2,945
39,904
51,850
3,885
12,606
3,720
10,926
3,304
52,353
16,145
64
241,585
92
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 93
36 BALANCE SHEET BY CURRENCIESAT 31 DECEMBER 1999 IN CHF M
ASSETS
Cash and other liquid assets
Money market claims
Due from banks
Claims from insurance business
Due from customers
Mortgages
Securities and precious metals trading portfolios
Financial investments from banking business
Investments from insurance business
Non-consolidated participations
Tangible fixed assets
Intangible assets
Accrued income and prepaid expenses
Other assets
TOTAL ASSETS
At 31 December 1998
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities in respect of money market paper
Due to banks
Commitments from insurance business
Due to customers, in savings and investment accounts
Due to customers, other
Medium-term notes
Bonds and mortgage-backed bonds
Accrued expenses and deferred income
Other liabilities
Valuation adjustments and provisions
Technical provisions for insurance business
Shareholders’ equity (excluding minority interests)
Minority interests
TOTAL LIABILITIES
At 31 December 1998
Total
3,141
28,994
164,901
6,457
104,931
86,553
126,746
18,828
117,222
1,823
6,828
2,990
9,023
44,309
722,746
652,437
22,120
198,324
6,268
44,007
182,249
3,885
47,905
14,916
52,577
8,566
107,561
32,621
1,747
722,746
652,437
Other currencies
743
13,256
67,112
3,621
17,768
4,506
60,261
6,257
58,673
417
710
317
2,769
23,082
259,492
261,971
6,290
80,117
3,273
130
44,376
0
14,184
2,393
23,125
3,093
52,420
9,298
1,418
240,117
238,339
US dollars
100
11,496
94,063
659
55,640
6,842
54,703
8,438
3,823
860
2,105
1,563
4,422
16,105
260,819
200,571
15,820
92,475
50
1
98,184
0
20,728
8,637
18,181
2,249
2,789
7,101
261
266,476
200,787
Swiss francs
2,298
4,242
3,726
2,177
31,523
75,205
11,782
4,133
54,726
546
4,013
1,110
1,832
5,122
202,435
189,895
10
25,732
2,945
43,876
39,689
3,885
12,993
3,886
11,271
3,224
52,352
16,222
68
216,153
213,311
93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 94
37 PARTICIPATIONS AT 31 DECEMBER 1999Principal fully consolidated participationsCompany(% of equity capital held by the company exercising control) Domicile Capital in m Business unit
Credit Suisse Group Zurich
100.00 Credit Suisse Zurich CHF 3,114.7 CS/CSPB
100.00 Credit Suisse First Boston Zurich CHF 3,336.8 CSFB/CSAM
100.00 ‘Winterthur’ Swiss Insurance Company Winterthur CHF 193.7 Winterthur
98.63 Neue Aargauer Bank Aarau CHF 273.8 CS
50.00 Swisscard AECS AG Zurich CHF 0.1 CS
100.00 Bank Leu Ltd. Zurich CHF 200.0 CSPB
100.00 Bank Hofmann AG Zurich CHF 20.0 CSPB
88.03 Clariden Holding AG Zurich CHF 8.1 CSPB
100.00 Bank Leu (Luxembourg) SA Luxembourg CHF 25.0 CSPB
100.00 Credit Suisse Fides Zurich CHF 5.0 CSPB
100.00 Credit Suisse Trust AG Zurich CHF 5.0 CSPB
100.00 Credit Suisse Trust Holdings Ltd. St. Peter Port GBP 2.0 CSPB
66.67 IT Services AG Dübendorf CHF 2.4
100.00 Credit Suisse Group Finance (Guernsey) Ltd. Guernsey CHF ~
100.00 Credit Suisse First Boston Private Equity Zug CHF 0.1 CSFB
100.00 Merban Equity Zug CHF 0.1 CSFB
100.00 CSFB IGP Zug CHF 0.1 CSFB
100.00 CSFB RGP Zug CHF 0.1 CSFB
20.00 1 Credit Suisse First Boston International London USD 682.3 CSFB
88.05 Savoy Zurich CHF 7.5
100.00 Wincasa Winterthur CHF 1.5
100 Credit Suisse Zurich CHF 3,114.7 CS/CSPB
93 City Bank Zurich CHF 7.5 CS
100 Swiss Ship Mortgage Bank Basle CHF 15.0 CS
100 Credit Suisse Immobilien Leasing AG Zurich CHF 3.0 CS
90 Innoventure Capital AG Zurich CHF 10.0 CS
100 WECO Inkasso AG Zurich CHF 0.5 CS
51 Swiss NetPay AG Zurich CHF 0.5 CS
100 ABZ Finanz- und Beteiligungsgesellschaft AG Zug CHF 4.0 CS
100 Bank für Handel und Effekten Zurich CHF 30.0 CSPB
100 Credit Suisse (UK) Ltd. London GBP 16.5 CSPB
100 Credit Suisse (Guernsey) Ltd. St. Peter Port GBP 3.0 CSPB
100 Credit Suisse (Gibraltar) Ltd. Marina Bay GBP 5.0 CSPB
100 Credit Suisse (Bahamas) Ltd. Nassau USD 12.0 CSPB
87 Credit Suisse Hottinguer Paris EUR 52.9 CSPB
100 Credit Suisse (Deutschland) Aktiengesellschaft Frankfurt DEM 20.0 CSPB
100 Credit Suisse (Italy) S.p.A. Milan ITL 78,459.4 CSPB
100 Credit Suisse Gestion SGIIC SA Madrid EUR 2.4 CSPB
100 Credit Suisse Investment Consulting (Taiwan) Ltd. Taipei TWD 30.0 CSPB
100 Credit Suisse Investment Advisory (Hong Kong) Ltd. Hong Kong HKD 1.0 CSPB
100 Credit Suisse (Luxembourg) S.A. Luxembourg CHF 25.0 CSPB
100 Credit Suisse (Monaco) S.A.M. Monte Carlo EUR 9.9 CSPB
100 Credit Suisse Securities Ltd. London GBP 10.0 CSPB
100 Swiss American Corporation New York USD 38.9 CSPB
93 Swiss American Securities, Inc. New York USD 8.3 CSPB
100 Streetline Inc. New York USD 6.0 CSPB
1 80% held by Credit Suisse First Boston
94
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 95
Principal fully consolidated participations (continued)Company(% of equity capital held by the company exercising control) Domicile Capital in m Business unit
100 Credit Suisse First Boston Zurich CHF 3,336.8 CSFB/CSAM
100 1 Credit Suisse First Boston, Inc. New York USD 187.0 CSFB
100 Credit Suisse First Boston Corp. New York USD ~ CSFB
100 Credit Suisse First Boston Mortgage Capital LLC New York USD ~ CSFB
100 Credit Suisse First Boston Equitech, Inc. New York USD ~ CSFB
100 Merchant GB, Inc. New York USD ~ CSFB
100 Credit Suisse First Boston Management Corp. New York USD ~ CSFB
100 Banco de Investimentos Credit Suisse First Boston Garantia S.A. São Paulo BRL 164.8 CSFB
100 Credit Suisse First Boston Garantia Ltd. Nassau USD 16.9 CSFB
100 Credit Suisse First Boston Pacific Capital Markets Ltd. Sydney AUD 10.0 CSFB
100 Credit Suisse First Boston Australia Securities Ltd. Sydney AUD 28.4 CSFB
100 Credit Suisse First Boston Canada Toronto CAD 157.3 CSFB
100 Credit Suisse First Boston Aktiengesellschaft Frankfurt DEM 215.0 CSFB
99 Credit Suisse First Boston (Moscow) A/O Moscow USD 36.6 CSFB
100 Credit Suisse First Boston (Cyprus) Limited Limassol USD 887.5 CSFB
100 Finanz AG Zurich Zurich CHF 15.0 CSFB
80 2 Credit Suisse First Boston International London USD 682.3 CSFB
100 Credit Suisse First Boston (International) AG Zug USD 37.5 CSFB
100 Credit Suisse First Boston (Singapore) Ltd. Singapore SGD 109.3 CSFB
100 Credit Suisse First Boston (Hong Kong) Ltd. Hong Kong HKD 381.1 CSFB
100 Credit Suisse First Boston Australia Limited Sydney AUD 0.1 CSFB
100 Credit Suisse First Boston Securities (Japan) Ltd. Tokyo USD 150.0 CSFB
100 Credit Suisse First Boston (Europe) Ltd. London USD 27.3 CSFB
100 Credit Suisse First Boston Equities Ltd. London GBP 15.0 CSFB
100 Credit Suisse First Boston International (Guernsey) Ltd. St. Peter Port GBP 0.2 CSFB
100 Credit Suisse First Boston (Latin America) Holdings LLC Grand Cayman USD 29.6 CSFB
100 Credit Suisse First Boston Australia (Finance) Ltd. Melbourne AUD 10.0 CSFB
100 Credit Suisse First Boston Finance (Guernsey) Ltd. St. Peter Port USD 0.2 CSFB
100 Credit Suisse First Boston Finance B.V. Amsterdam NLG ~ CSFB
100 Credit Suisse First Boston Australia (Holdings) Ltd. Sydney AUD 0.4 CSFB
100 Credit Suisse Bond Fund Management Company SA Luxembourg CHF 0.3 CSFB
100 Credit Suisse Equity Fund Management Company SA Luxembourg CHF 0.3 CSFB
100 Credit Suisse Money Market Fund Management Company SA Luxembourg CHF 0.3 CSFB
100 Credit Suisse Portfolio Fund Management Company SA Luxembourg CHF 0.3 CSFB
100 Credit Suisse Asset Management Funds Zurich CHF 7.0 CSFB
100 Credit Suisse Trust & Banking Co. Ltd. Tokyo JPY 9,000.0 CSAM
100 Credit Suisse Asset Management Ltd. London GBP ~ CSAM
100 Credit Suisse Asset Management (Australia) Sydney AUD 0.3 CSAM
100 3 Credit Suisse Asset Management LLC New York USD ~ CSAM
100 Credit Suisse Asset Management (Deutschland) GmbH Frankfurt DEM 5.0 CSAM
100 Credit Suisse Asset Management (France) S.A. Paris FRF 164.8 CSAM
100 Credit Suisse Asset Management SIM S.p.A. Milan ITL 12,000.0 CSAM
1 49% of voting rights held by Credit Suisse Group
2 20% held by Credit Suisse Group
3 after merger of Credit Suisse Assets Management and Warburg Pincus Asset Management; 30% of voting rights held by Credit Suisse Group
95
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 96
Principal fully consolidated participations (continued)Company(% of equity capital held by the company exercising control) Domicile Capital in m Business unit
100 ‘Winterthur’ Swiss Insurance Company Winterthur CHF 193.7 Winterthur
Switzerland
100 Winterthur Life Winterthur CHF 175.0 Winterthur
100 The Federal Zurich CHF 10.0 Winterthur
67 Winterthur Legal Assistance Winterthur CHF 9.0 Winterthur
100 Vitodurum Insurance Winterthur CHF 40.0 Winterthur
100 Swissline Wallisellen CHF 0.5 Winterthur
100 Winterthur International Winterthur CHF 1.0 Winterthur
100 Gartenhotel Winterthur CHF 2.5 Winterthur
Germany
100 Winterthur Beteiligungsgesellschaft m.b.H. Wiesbaden DEM 0.1 Winterthur
100 WINCOM Versicherungs-Holding AG Wiesbaden DEM 102.7 Winterthur
69 DBV-Winterthur Gruppe Wiesbaden DEM 170.4 Winterthur
Italy
100 Winterthur Holding Italia Milan ITL 260,000.0 Winterthur
100 Winterthur Assicurazioni Milan ITL 250,882.2 Winterthur
100 Winterthur Vita S.p.A. Milan ITL 95,000.0 Winterthur
Spain
100 Hispanowin S.A. Barcelona ESP 14,762.4 Winterthur
100 Winterthur Inmuebles 2 Barcelona ESP 9,297.0 Winterthur
100 Winterthur Seguros Generales Barcelona ESP 6,044.3 Winterthur
100 Winterthur Inmuebles Barcelona ESP 9,453.0 Winterthur
100 Winterthur Ibérica Barcelona ESP 4,423.5 Winterthur
80 Winterthur Asistencia Barcelona ESP 515.0 Winterthur
100 Winterthur Vida Española Barcelona ESP 5,819.0 Winterthur
100 WINVALOR Agencia de Valores Barcelona ESP 150.0 Winterthur
100 Winterthur Salud de Seguros Barcelona ESP 1,379.0 Winterthur
100 Winterthur Pensiones Barcelona ESP 970.0 Winterthur
Belgium
85 Winterthur-Europe Assurances Brussels BEF 8,000.0 Winterthur
100 Assurance Group Josi Brussels BEF 1,250.0 Winterthur
100 Assar Brussels BEF 70.0 Winterthur
99 Sofimmocentrale Brussels BEF 1,020.0 Winterthur
50 Touring Assurances Brussels BEF 1,125.0 Winterthur
51 Jean Verheyen Brussels BEF 5.0 Winterthur
Luxembourg
100 Winterthur-Europe Vie Luxembourg LUF 177.2 Winterthur
UK
100 Winterthur (UK) Holdings London GBP 42.6 Winterthur
100 Churchill Insurance Bromley GBP 60.0 Winterthur
93 Churchill Management Bromley GBP 2.6 Winterthur
100 Winterthur Life UK Holdings Basingstoke GBP ~ Winterthur
100 Winterthur Life UK Basingstoke GBP 26.4 Winterthur
100 Winterthur International London GBP 120.0 Winterthur
96
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Principal fully consolidated participations (continued)Company(% of equity capital held by the company exercising control) Domicile Capital in m Business unit
‘Winterthur’ Swiss Insurance Company (continued)
Austria
100 Winterthur Versicherungs-AG Vienna ATS 127.5 Winterthur
100 Winterthur Pensionskassen AG Vienna ATS 70.0 Winterthur
100 Wintisa Management und Consulting AG Vienna ATS 1.0 Winterthur
Portugal
100 Europeia Seguros Lisbon PTE 3,948.0 Winterthur
France
87 Rhodia Assurance Lyon FRF 60.0 Winterthur
Czech Republic
100 Bánsky a hutní penzijní fond a.s. Trinec CZK ~ Winterthur
68 Winterthur pojist’ouna a.s. Prague CZK 363.0 Winterthur
86 Winterthur penzijní fond a.s. Brno CZK 142.4 Winterthur
Hungary
65 Winterthur Erste Schweiz-Ungarische Kassenverwaltungs AG Budapest HUF 650.0 Winterthur
65 Winterthur Biztósitó Rt. Budapest HUF 1,000.0 Winterthur
Poland
86 Winterthur S.A. Warsaw PLN 40.0 Winterthur
93 Winterthur Zycie Warsaw PLN 60.0 Winterthur
70 Winterthur PTE Warsaw PLN 10.0 Winterthur
USA
100 Winterthur U.S. Holdings Wilmington, DE USD ~ Winterthur
100 Blue Ridge Simsbury, CT USD 3.6 Winterthur
100 General Casualty Sun Prairie, WI USD 3.0 Winterthur
100 Republic Financial Services Dallas, TX USD ~ Winterthur
100 Southern Guaranty Montgomery, AL USD 2.0 Winterthur
100 Unigard Bellevue, WA USD ~ Winterthur
Canada
100 Winterthur Canada Financial Toronto CAD ~ Winterthur
100 The Citadel General Toronto CAD 34.1 Winterthur
100 L’Unique Quebec CAD 7.0 Winterthur
Other countries
100 Winterthur Administrações São Paulo BRL 19.4 Winterthur
100 Winterthur Internacional São Paulo BRL 11.0 Winterthur
100 Winterthur International (SA) Johannesburg ZAR 1.0 Winterthur
100 Winterthur International Argentina S.A. Buenos Aires USD 0.5 Winterthur
100 Winterthur Holdings Australia Sydney AUD 54.2 Winterthur
100 Winterthur International Sydney AUD 20.0 Winterthur
97 Winterthur Insurance (Far East) Singapore SGD 25.0 Winterthur
100 Winterthur Swiss Insurance (Asia) Hong Kong HKD 176.6 Winterthur
100 Winterthur Insurance (Asia) Hong Kong HKD 150.0 Winterthur
100 Winterthur Insurance Services Hong Kong HKD 38.8 Winterthur
60 Winterthur Life Indonesia Jakarta IDR 44,500.0 Winterthur
91 Winterthur International Hamilton, Bermuda USD 2.4 Winterthur
96 Winterthur Overseas Hamilton, Bermuda USD 0.3 Winterthur
100 Windsor Parc Ltd. Hamilton, Bermuda USD 1.0 Winterthur
100 Winterthur Swiss Insurance (Macau) Macau HKD 20.0 Winterthur
áy
97
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 98
Principal participations at 31 December 1999 valued according to the equity methodEquity interest
Company Domicile Capital in m in %
Credit Suisse Group
Inreska Ltd. St. Peter Port GBP 3.0 100.0
Capital Union Dubai USD 30.0 25.0
Göhner Merkur AG Zurich CHF 80.0 33.2
Credit Suisse
Cornèr Bank AG Lugano CHF 12.0 27.3
Innoventure Equity Partners AG Zurich CHF 0.2 30.0
Swiss Euro Clearing Bank GmbH Frankfurt DEM 15.0 12.5
Credit Suisse First Boston
Valcambi SA Balerna CHF 12.0 100.0
Innovent Capital Ltd. Grand Cayman CHF 10.6 38.6
Swiss Euro Clearing Bank GmbH Frankfurt DEM 15.0 15.0
‘Winterthur’ Swiss Insurance Company
Norwich Winterthur Holdings Norwich GBP 54.5 48.5
Norwich Winterthur Reinsurance Corp. Norwich GBP 57.8 46.5
Commonwealth Insurance Grand Cayman USD 0.1 91.0
Auto-Bestandteil-Wiederverwertung AG Grolley CHF 0.2 50.0
Expertisa Columna Beratungen Winterthur CHF 0.2 100.0
IT Services AG Dübendorf CHF 2.4 33.3
Lehr- und Versuchswerkstätte Volketswil CHF 0.3 100.0
Technopark Immobilien Zurich CHF 40.0 25.0
Wincare Versicherungen Winterthur CHF 0.1 100.0
Winterthur Financial Services Winterthur CHF 0.5 100.0
Zürcher Freilager AG Zurich CHF 4.0 36.2
Winterthur Fund Management Co. Luxembourg LUF 5.0 100.0
Winterthur International Services Hamilton, Bermuda USD ~ 100.0
Zentrum Regensdorf Regensdorf CHF 4.5 50.0
98
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 99
Principal participations at 31 December 1999 valued at costEquity interest
Company Domicile Capital in m in %
Credit Suisse Group
BGP Banca di Gestione Patrimoniale SA (operational from February 2000) Lugano CHF 50.0 100.0
Fides Information Services Zurich CHF 1.0 67.0
Credit Suisse
Swiss Mortgage Bond Bank Zurich CHF 300.0 12.8
Swiss Steel AG Emmen CHF 137.7 30.7
Credit Suisse First Boston
Banco General de Negocios Buenos Aires ARS 163.0 24.1
Banco Comercial SA Montevideo UYU 215.9 19.9
Telekurs Holding AG Zurich CHF 45.0 17.4
Swiss Financial Services Group AG Zurich CHF 46.0 10.6
SNOC Swiss Nominee Company Zurich CHF 2.0 25.0
Euro-Clear Clearance System Ltd. London GBP 2.5 6.0
NCO Dealer Soc. Fin. Lisbon PTE 500.0 18.0
San Luis Financial and Investment Co. Ltd. Panama City PAB 0.5 12.1
North Bay Ltd. Nassau USD 8.0 100.0
SWIFT La Hulpe BEF 439.9 1.6
‘Winterthur’ Swiss Insurance Company
Winterthur Research SA Barcelona ESP 15.0 100.0
Winterthur-Service SA Barcelona ESP 25.0 100.0
Seguros ATLAS Mexico City MXN 50.0 30.0
Allgemeine Hypothekenbank AG Frankfurt DEM 170.0 10.0
99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 100
Year-end rate used Average rate usedin the balance sheet at 31 Dec. in the income statement in
FOREIGN CURRENCY TRANSLATION RATES IN CHF 1999 1998 1999 1998
1 US dollar (USD) 1.598 1.375 1.490 1.430
1 euro (EUR) 1.606 1.610 1.580 1.610
1 British pound sterling (GBP) 2.587 2.290 2.400 2.370
1 Canadian dollar (CAD) 1.101 0.888 1.000 0.970
1 Singapore dollar (SGD) 0.959 0.824 0.880 0.860
1 Hong Kong dollar (HKD) 0.206 0.178 0.191 0.185
100 Deutsche marks (DEM) 82.098 82.330 81.000 81.600
100 Dutch guilders (NLG) 72.863 73.070 71.900 72.350
100 French francs (FRF) 24.479 24.550 24.150 24.300
100 Italian lire (ITL) 0.0829 0.0832 0.0820 0.0825
100 Japanese yen (JPY) 1.563 1.210 1.310 1.100
100 Spanish pesetas (ESP) 0.965 0.968 0.952 0.956
100
03_Finanzteil_E_00 30.04.2000 13:27 Uhr Seite 101
REPORT OF THE GROUP’S AUDITORS TO THE ANNUAL GENERAL MEETING OF CREDIT SUISSE GROUP, ZURICH
As auditors of the Group, we have audited the consolidated financial statements (income statement, balance sheet, statement of source
and application of funds and notes) of Credit Suisse Group for the year ended 31 December 1999.
These consolidated financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion
on these consolidated financial statements based on our audit. We confirm that we meet the legal requirements concerning professional
qualification and independence.
Our audit was conducted in accordance with auditing standards promulgated by the profession in Switzerland and with the
International Standards on Auditing issued by the International Federation of Accountants (IFAC), which require that an audit be planned
and performed to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
We have examined on a test basis evidence supporting the amounts and disclosures in the consolidated financial statements. We have
also assessed the accounting principles used, significant estimates made and the overall consolidated financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements give a true and fair view of the financial position, results of operations and the
source and application of funds based on the Swiss accounting rules for banks and the Swiss accounting and reporting recommendations
(ARR) for the insurance business of the Group, which are explained in the notes to the consolidated financial statements, and comply with
Swiss law. Furthermore, the consolidated financial statements comply with European Union directives (4th, 7th and directive for banks),
except for the deviations described in the notes to the consolidated financial statements.
We recommend that the consolidated financial statements submitted to you be approved.
KPMG Klynveld Peat Marwick Goerdeler SA
Brendan R. Nelson Peter Hanimann
Chartered Accountant Certified Accountant
Auditors in Charge
Zurich, 9 March 2000
101