.credit-suisse Credit Suisse First Boston Foundation Social Responsibility Report 2001
credit-suisse Supplements
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Transcript of credit-suisse Supplements
SUPPLEMENTS TO THE SECOND QUARTER 2002 RESULTS
Supplement Slide 2
CREDIT SUISSE FIRST BOSTONFID REVENUE BREAKDOWN - Q2 2002
EMG14%
Rates26%
Credit60%
Fixed Income *
* Fixed Income revenue includes 50% of fixed income capital markets
Supplement Slide 3
CREDIT SUISSE FIRST BOSTONEQUITY REVENUE BREAKDOWN - Q2 2002
US customer
36%
LatAm customer
2%Europe customer
17%
Asia customer
8%
EDCU37%
Equity *
* Equity revenue includes 50% of equity capital markets
Supplement Slide 4
CREDIT SUISSE FIRST BOSTONIBD REVENUE BREAKDOWN - Q2 2002
Private Equity7%
Other17%
M&A42%
ECM21%
DCM13%
Investment Banking *
* Investment Banking revenue includes 50% of equity capital markets and 50% of fixed income capital markets
Supplement Slide 5
CREDIT SUISSE FIRST BOSTONCSFB FS REVENUE BREAKDOWN - Q2 2002
CSAM43%
Pershing41%
PCS16%
CSFBFinancial Services
Supplement Slide 6
LoansLoan equivalent exposure
Money marketF/X, precious metalsDerivatives
Trading positionsFixed incomeEquities
Reverse repos
Total, gross
Net notional FX positionProvisions
Net exposure
Americas
1,439627
0627
0
1,1031,073
30
503
3,672
74(173)
3,574
CIS/ Europe
1,014202
0202
0
1,1501,117
33
63
2,430
(106)(16)
2,308
Total Global
3,9971,621
01,621
0
6,946104
1
734
13,298
(1,937)(432)
10,929
Mid. East/ Africa
394332
0332
0
1,1271,123
5
49
1,902
(680)(18)
1,205
EMERGING MARKETS EXPOSURE BY REGION(at close of business June 28, 2002)
Asia / Pacific
1,149460
0460
0
3,5663,202
363
118
5,293
(1,225)(226)
3,842
in USD m
Supplement Slide 7
LoansLoan equivalent exposure
Money marketF/X, precious metalsDerivatives
Trading positionsFixed incomeEquities
Reverse repos
Total, gross
Net notional FX positionProvisions
Net exposure
Argentina
24953
053
0
2323
0
2
326
0(140)
187
Brazil
35879
079
0
917892
25
363
1,718
(104)0
1,613
TotalRegion
1,439627
0627
0
1,1031,073
30
503
3,672
74(173)
3,574
Mexico
461313
0313
0
5147
4
74
899
201(27)
1,073
AMERICAS REGION EXPOSURE(at close of business June 28, 2002)
Other
371182
0182
0
112111
1
64
729
(23)(6)
701
in USD m
Supplement Slide 8
LoansLoan equivalent exposure
Money marketF/X, precious metalsDerivatives
Trading positionsFixed incomeEquities
Reverse repos
Total, gross
Net notional FX positionProvisions
Net exposure
Russia
3940000
429404
25
30
853
(200)0
652
Czech Republic
2219
019
0
9190
2
0
132
170(15)
287
Turkey
27943
043
0
5857
0
7
387
(26)0
361
CIS/EUROPE REGION EXPOSURE (1/2)(at close of business June 28, 2002)
Hungary
1423
023
0
187186
0
0
224
(40)0
183
in USD m
Supplement Slide 9
LoansLoan equivalent exposure
Money marketF/X, precious metalsDerivatives
Trading positionsFixed incomeEquities
Reverse repos
Total, gross
Net notional FX positionProvisions
Net exposure
Poland
8398
098
0
286283
3
22
489
(9)0
480
Other
22319
019
0
10098
2
4
346
0(1)
346
CIS/EUROPE REGION EXPOSURE (2/2)(at close of business June 28, 2002)
TotalRegion
1,014202
0202
0
1,1501,117
33
63
2,430
(106)(16)
2,308
in USDm
Supplement Slide 10
LoansLoan equivalent exposure
Money marketF/X, precious metalsDerivatives
Trading positionsFixed incomeEquities
Reverse repos
Total, gross
Net notional FX positionProvisions
Net exposure
Egypt
371010
330
0
41
00
41
Saudi Arabia
6940
040
0
000
0
109
00
109
Other
14594
094
0
1919
0
43
301
(7)(1)
293
AFRICA / MIDDLE EAST REGION EXPOSURE (1/2)(at close of business June 28, 2002)
MiddleEast
251135
0135
0
2222
1
43
451
(7)(1)
443
in USD m
Supplement Slide 11
LoansLoan equivalent exposure
Money marketF/X, precious metalsDerivatives
Trading positionsFixed incomeEquities
Reverse repos
Total, gross
Net notional FX positionProvisions
Net exposure
Other
1020000
110110
0
0
212
0(16)
196
TotalAfrica
143197
0197
0
1,1051,101
4
6
1,452
(674)(16)
762
AFRICA / MIDDLE EAST REGION EXPOSURE (2/2)(at close of business June 28, 2002)
TotalRegion
394332
0332
0
1,1271,123
5
49
1,902
(680)(18)
1,205
in USD mSouthAfrica
41197
0197
0
995991
4
6
1,239
(674)0
565
Supplement Slide 12
LoansLoan equivalent exposure
Money marketF/X, precious metalsDerivatives
Trading positionsFixed incomeEquities
Reverse repos
Total, gross
Net notional FX positionProvisions
Net exposure
Indonesia
323(22)
0(22)
0
439439
0
1
741
83(174)
650
SouthKorea
82238
0238
0
2,5572,371
186
49
2,927
(1,429)(9)
1,489
Malaysia
757070
221012
0
104
(7)0
98
ASIA / PACIFIC REGION EXPOSURE (1/2)(at close of business June 28, 2002)
Thailand
849090
270260
10
12
376
(0)(8)
368
in USD m
Supplement Slide 13
LoansLoan equivalent exposure
Money marketF/X, precious metalsDerivatives
Trading positionsFixed incomeEquities
Reverse repos
Total, gross
Net notional FX positionProvisions
Net exposure
HongKong
15066
066
0
130(6)
136
25
371
0(10)
361
Other
585228
0228
0
278123155
55
1,145
128(35)
1,239
ASIA / PACIFIC REGION EXPOSURE (2/2)(at close of business June 28, 2002)
TotalRegion
1,149460
0460
0
3,5663,202
363
118
5,293
(1,225)(226)
3,842
in USD mChina
311116
0116
0
160
16
8
451
2(6)
448
Supplement Slide 14
16% 16% 14% 15% 14% 14% 14%
38% 39%
44% 43% 45% 44% 43% 44% 43%
5% 4%5%4%4%5%5%
38%37%36%36%35%
YE 00 03/01 06/01 09/01 YE 01 03/02 06/02
TOTAL COUNTERPARTY EXPOSUREBY RATING
R5 - R7 or N/R(non-investment grade)
R4(BBB)
R1 - R3(AAA - A)
R8(impaired / non-performing)
in CHF bn418431423405 400 380 350
Supplement Slide 15
TOTAL COUNTERPARTY EXPOSUREINDUSTRY BREAKDOWN
Selected Industries
§ Automotive: 0.4%
§ Computer: 2.0%
§ Energy: 4.7%
§ Health care: 1.2%
§ Telecom: 2.4%
Services15.4%
Manufacturing9.1%
Public2.3%
Individuals20.1%
Other1.7%
RE & const.7.6%
Financial enterprises
37.4%
Energy/environ.4.8%
Agri/mining1.7%
Total exposure: CHF 350 bn(as of June 30, 2002)
Supplement Slide 16
LIFE & PENSIONSGROSS PREMIUMS WRITTEN
56 54
38 396 7
H1/01 H1/02
CEE, Asia
Germany, UK, Iberia, Benelux
Switzerland
57 51
43 49
H1/01 H1/02
Individual
Group
84 84
16 16
H1/01 H1/02
Unit-linked
Traditional
51 46
49 54
H1/01 H1/02
Single
Annual
CHF 9.2 bn CHF 10.3 bn% of total
CHF 9.2 bn CHF 10.3 bn CHF 9.2 bn CHF 10.3 bn
CHF 9.2 bn CHF 10.3 bn
Note: 2001 excluding France and Austria
Supplement Slide 17
LIFE & PENSIONSDISTRIBUTION BY CHANNEL
% of total sales
57 58
16 17
16 15
4455
12
H1/01 H1/02
Tied agents and other own channels
External banksCSGOthersDirect
Brokers
CHF 11.7 bn CHF 12.3 bn
Note: 2001 excluding France and Austria
Supplement Slide 18
INSURANCEDISTRIBUTION BY CHANNEL
40 37
45 45
44107
4 4
H1/01 H1/02
Tied agents
OtherCall centerBanks
Brokers
% of total gross premiums, local business only
CHF 9.4 bn CHF 10.8 bn
Supplement Slide 19
L&P NEW BUSINESS WITH LOW GUARANTEES COMPARED TO RISK-FREE RATES
New business
CHF billion, H1 2002
Renewals/ existing business
70%
30%
Total GWP H1 2002
10.3
NEW BUSINESS GUARANTEES VS. RISK-FREE MARKET RATES*
+/- other expenses or profits to calculate profitability (e.g. unit-linked business, risk process, administration process, mandatory bonus payouts)
4.74%
3.92%
3.92%
5.32%
5.32%
5.32%
5.32%
4.00%
2.50%
3.25%
3.25%
2.50%
2.50%
2.73%
CH Group Life
CH individual
Germany
Spain
Italy
Belgium
LP weighted average
(top 5 sites)
10 yr risk-free rate
Technical interest rate
(net new assets)
* average 2Q 2002
Supplement Slide 20
STRUCTURAL PROFITABILITY OFINSURANCE BUSINESS
§ With the current technical performance of 4.0% to 4.5%, investment result based purely on current income would lead to break-even or better results in both insurance businesses
Life & Pensions(1)
Life & Pensions(1)
Insurance(2)Insurance(2)
Required investment income
Investment income based on current income only
Combined ratio104%
Combined ratio104%
Other/interest expenses1.0% to 3.0%
Other/interest expenses1.0% to 3.0%
+5.0% to 7.0%
5.0% to 7.0%
Guaranteed interest rate of in-force business
3.7%
Guaranteed interest rate of in-force business
3.7%
Net other items0.3% to 0.5%
Net other items0.3% to 0.5%
+4.0% to 4.2%
4.0% to 4.2%
≤
≤ 4.0% to 4.5%4.0% to 4.5%
8.0% to 9.0%
8.0% to 9.0%
Current income4.0% to 4.5%
Current income4.0% to 4.5%
Invested assetcoverage ratio(3)
2.0x
Invested assetcoverage ratio(3)
2.0x
∗
(1) in relation to technical reserves (2) in relation to net premiums earned (3) investment portfolio to premiums
Supplement Slide 21
WINTERTHUR GROUP INVESTMENT RESULT
§ Realized losses, including impairments, were main driver for poor investment results
in m CHF H1 H2 Total Q1 Q2 Total
Current income 3,044 2,577 5,621 1,252 1,449 2,701
Realised gains 2,664 2,729 5,393 1,348 1,387 2,735
Realised losses (incl. impairments) -927 -2,584 -3,511 -1,602 -2,985 -4,587
Thereof impairments (-295) -774 (-1,152) (-942) (-857) (-1,799)
Depreciation on RE -93 -104 -197 -49 -46 -95
NET real. G/L 1,644 41 1,685 -303 -1,644 -1,947
Investment result 4,688 2,618 7,306 949 -195 754
Net investment income* 4,514 2,468 6,982 879 -262 617
* for L&P: investment income general account
2001 2002
Supplement Slide 22
WINTERTHUR GROUP INVESTMENT PORTFOLIOCREDIT EXPOSURE BY RATING
A13.3%
BBB0.5%
AA37.6%
AAA48.6%
Winterthur Life & Pensions 30.06.02 Winterthur Insurance 30.06.02
A24%
BBB4%
AA44%
AAA28%
Supplement Slide 23
EU SOLVENCY CALCULATIONS AVAILABLE CAPITAL
Solvency related capital (available capital)*
New Swiss primary equity
Alternative solvency capital
DAC PVFP EU solvencycapital
(available capital)
Real estatevalue
adjustm.
Deferredtax
adjustm.
Technical& other adjustm.
Value ofin-force
portfolio**
* exemplary illustration only, actual or relative sizing of adjustments does not reflect real financials** only up to the amount allowed by regulators
Supplement Slide 24
EU SOLVENCY CALCULATIONS ADJUSTMENTS (1/2)
These are not admissible for BPV/EU solvency and must be reversed.
Under New Swiss Primary a deferred tax asset (liability) is established when there is a temporary difference between the book basis value and the tax basis value.
Deferred tax adjustments
Differences between New Swiss Primary and statutory accounting standards data.
Technical adjustments for differences in provisioning under New Swiss Primary and under statutory accounting standards.Comprises pension cost (assets) liability, deferred gains run-off Non-Life, free bonus reserves Switzerland and non-allocated/non-specific reserves (not technical).
Technical & otheradjustments
Eligible solvency adjustments up to market value.
Real estate carried at cost less accumulated depreciation underNew Swiss Primary accounting rules (Swiss GAAP FER alignment to US GAAP).Real estate is carried at cost net of any provisions for impairment in statutory accounts.
Real estatevalue adjustments
Can not exceed 50% of margin (rating agencies may be more restrictive).
Amount of hybrid capital that is allowed for capital under EU solvency regulations.
Alternative solvency capital
CommentDefinitionAdjustments
Supplement Slide 25
EU SOLVENCY CALCULATIONS ADJUSTMENTS (2/2)
Certain Zillmers are allowed to be used to cover the EU solvency requirement.
In certain countries, deferred acquisition costs are deducted from the statutory reserve - rather than booking them as an asset under New Swiss Primary (DAC).
Zillmer
This value can be converted to cash by securitization.
The value of the in-force portfolio calculated using statutory information. Only the amount admissible by regulators is added to solvency capital.
Value of in-force business
New Swiss Primary DAC is not admissible for BPV/EU Group solvency and must be reversed
DAC consist primarily of commissions, underwriting expenses and policy issuance costs, which vary with - and are directly related to - the acquisition of insurance contracts, and are deferred to the extent they are deemed recoverable.
DAC(deferred acquisition costs)
This is not recorded on a statutory basis and therefore deducted for EU solvency calculations.
PVFP is an intangible asset established at acquisition under New Swiss Primary accounting standards. The Present Value of Future Profits is the present value of anticipated profits embedded in each acquired life and health insurance portfolio.
PVFP(present value of future profits)
CommentDefinitionAdjustments
Supplement Slide 26
WINTERTHUR GROUP CAPITALCHANGES IN FIRST HALF 2002
§ EU solvency decreased to a level of 129% at March/Aprils CHF 1.1 billion upper tier 2 issued by CSG and downstreamed to Winterthur
in the form of alternative solvency capital (not part of shareholders' equity)s Equity injection of CHF 600 million was concluded
5,2783,962
(123)(150) (369) (283) (991) 600
12/01 Dividends paid Net unrealizedgains/(losses)
FX changes;others
Net loss Capitalinjection
Minorities 06/02
Shareholders equity* (in CHF m)
* including minorities
§ The EU solvency ratio was raised to 155%, based on Q1/02 results
Supplement Slide 27
CAUTIONARY STATEMENT REGARDINGFORWARD-LOOKING INFORMATION (1/2)
This presentation contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements.Words such as “believes,” “anticipates,” “expects,” intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws.By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counter-parties to meet their obligations to us;
Supplement Slide 28
CAUTIONARY STATEMENT REGARDINGFORWARD-LOOKING INFORMATION (2/2)
(iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; and (xviii) our success at managing the risks involved in the foregoing.We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our Form 20-F and reports on Form 6-K filed with the US Securities and Exchange Commission.