ultra-high-net-worth-individuals

(UHNWI)andentrepreneurclientshasallowedustogrowrevenuesinAPAC.
WereportedrecordassetsundermanagementofCHF169billionandNNAofCHF4.
6billionatend-3Q16,drivenbythequalityandeffectivenessoftheintegratedapproachwetakebetweenwealthmanage-mentandinvestmentbanking.
ThedivisionachievedanannualizedNNAgrowthrateof12%.
Ouradvisoryandunderwritingbusinessranked#1intermsofshareofwalletinAsiaPacificex-Japanamonginternationalbanks4in9M16.
InIWM,wedeliveredarobustperformancein3Q16withadjusted*pre-taxincomeofCHF241milliondespitelowerlevelsofclientactivity.
Inwealthmanagement,weachievedstrongNNAofCHF4.
4billion,representinganannualizedgrowthrateof6%.
Ourgrowthinitiatives,includingthelaunchoftheStrategicClientPartnersunitwithadedicatedcoverageteam,haveallowedustocreatefurthervalueforourUHNWIclients.
InAssetManagement,wehadastrongquarterwithassetinflowsofCHF5billion,includ-ingnotablecontributionsfromemergingmarketsandfixedincomeproducts.
IBCMhadaprofitablequarterwithadjusted*pre-taxincomeofUSD55million.
InAdvisory,wecontinuedtoleveragethestrengthofourglobalfranchise,withanumberofmarqueetransactionsexceedingUSD10billion5announcedduring3Q16.
AcrossourIBCMfranchise,ourglobalreachandtheconnectivitybetweenteamsisstrongerthanever.
ThisreflectsourintegratedapproachtoclientcoverageacrossourUHNWI,corporateandfinan-cialsponsorclientbase,combinedwithindustryandfinancingcapabilities.
Dearshareholders3Q16wasaperiodofcontinuedprogressforCreditSuisse.
TheGroupandalloperatingdivisionswereprofitable.
Weremainedfocusedonimplementingourstrategywithdiscipline,deliveringfurtherreductionsincostaswelowerourbreak-evenpoint.
OurclientfranchisesacrossSwissUniversalBank(SUB),AsiaPacific(APAC)andInternationalWealthManagement(IWM)achievedaprofitablequarter,withcontinuedhealthynetassetinflowsatsolidmargins.
OuradvisoryandunderwritingteamsinInvestmentBank-ing&CapitalMarkets(IBCM)stayedclosetoourclientsduringthequarter,gainingmarketshareinkeyproductareas.
InGlobalMarkets(GM),wehadasecondprofitablequarterthisyearwithnotablestrengthinourCreditfranchises.
TheStrategicResolutionUnit(SRU)achievedfurtherreductionsinrisk-weightedassets(RWA)andleverageexposureaswellasasignificantreductioninadjusted*costs.
ThisisanimportantsourceofcapitalfortheGroup,allowingresourcestobereinvestedinAPAC,IWM,SUBandIBCM,whereweexpecttogeneratehigherreturns.
Wefur-therstrengthenedourcapitalpositionwithaCET1ratioof12%andCET1leverageratioof3.
4%onalook-throughbasisasofend-3Q16.
FinancialperformanceCreditSuissereportednetincomeattributabletoshareholdersofCHF41millionandpre-taxincomeofCHF222millionin3Q16(adjusted*:CHF327million).
SUB,APACandIWMweresignifi-cantcontributorstothisresult,generatingcombinedadjusted*pre-taxincomeofCHF847million.
Theyattractednetnewassets(NNA)ofCHF9.
2billionintheirwealthmanagementbusinessesduringthequarterandatotalofCHF30.
9billionsincethebegin-ningof2016.
InourSwisshomemarket,whereweofferexpertserviceandadvicetothefullspectrumofclients,SUBdeliveredadjusted*pre-taxincomeofCHF431millionin3Q16.
Wemadefurtherprog-ressingrowingourBankforEntrepreneurs,whichcombinesourwealthmanagementandcorporatebankingcapabilities.
Morecli-entssigneduptoourCreditSuisseInvestoffering,whichdrovemandatespenetrationof29%atend-3Q16,anincreaseof5per-centagepointscomparedto3Q15.
OurinvestmentbankinSwit-zerlandmaintaineditsleadingmarketshareintermsofannouncedmergersandacquisitionstransactions1anddebtcapitalmarketdeals2.
OurSwisslegalentityCreditSuisse(Schweiz)AGisontracktostartoperationsinNovember2016.
ThisimportantstepwillenhancetheGroup'sresolvabilityinaccordancewithregulatoryrequirements.
Theplannedpartial(20-30%)initialpublicofferingofCreditSuisse(Schweiz)AGisscheduledtotakeplacebyend-2017,marketconditionspermitting3.
InAPAC,wedeliveredadjusted*pre-taxincomeofCHF175millionin3Q16.
Ourintegratedapproachtoserving3Q16LettertoshareholdersUrsRohner,ChairmanoftheBoardofDirectors(left)andTidjaneThiam,ChiefExecutiveOfficer.
229005EOutlookWearedeliveringonourstrategyandaremaintainingaqualitydia-loguewithourclientsacrosswealthmanagementandinvestmentbanking.
Lookingahead,weexpectmarketactivitytocontinuetobeinfluencedbygeopoliticalandmacro-economicuncertaintyoverthenextseveralquartersandtheoutlooktoremainchal-lenging.
Webelievethatweareontherightpathandaremakingprogressonimplementingourstrategy.
Theseeffortsaredrivenbythehardworkanddedicationofouremployees,whomwethankwholeheartedlyfortheirrelentlessanddailyefforts,andthesup-portofourclients,whoentrustuswiththeirbusiness,andofourshareholdersaroundtheglobe.
BestregardsUrsRohnerTidjaneThiamChairmanoftheChiefExecutiveOfficerBoardofDirectorsNovember2016GMwasprofitablewithadjusted*pre-taxincomeofUSD150millionin3Q16inspiteofareductionof16%ofRWAandof14%ofrevenuesyearonyear.
Anumberofourclientfranchiseshadastrongquartercomparedto3Q15,particularlyinCredit.
GlobalCreditProductsgloballydelivereditsbestthirdquarterper-formancesince2013asourteamsstayedclosetoclientsacrosshighyieldandinvestmentgrademarkets.
Thiswasoffsetbyaweakercontributionfromourequitiesbusinesses,particularlyinequityderivativesandequitiestradinginEurope.
IntheUS,ourEquitiesfranchiseheldupwellandwemaintainedourstrongposi-tionswithourcoreclientsacrossCashandPrimeServices.
WecontinuetomakeprogressincreatingoperatingleverageinGMandexpecttoapproachourend-2018costtargetofUSD5.
4bil-lionbyend-2016.
OurfocusoncostsplayedakeyroleinGM's3Q16profitability.
TheSRUcontinuedtomakeprogressinreducingcostsandcapital.
Since3Q15,RWA,leverageexposureandadjusted*oper-atingcostswerereducedbyUSD20billion,USD78billionandUSD310million,respectively.
ImprovedcapitalpositionWefurtherimprovedourcapitalpositionandreportedalook-throughCET1capitalratioof12%atend-3Q16,comparedto11.
8%atend-2Q16.
Thelook-throughCET1leverageratiowas3.
4%atend-3Q16.
*Adjustedresultsarenon-GAAPfinancialmeasures.
ForareconciliationoftheadjustedresultstothemostdirectlycomparableUSGAAPmeasures,seeReconciliationofadjustedresults"tablesinI–CreditSuisseresults.
1Source:ThomsonSecurities,SDCPlatinum,CreditSuisse.
2Source:InternationalFinancialReview.
3AnysuchIPOwouldinvolvethesaleofaminoritystakeandwouldbesubjectto,amongotherthings,allnecessaryapprovalsandwouldbeintendedtogenerate/raiseadditionalcapitalforCreditSuisseAGorCreditSuisse(Schweiz)AG.
4Source:DealogicasofOctober2016.
5Source:DealogicasofSeptember30,2016.
Keymetricsin/endof%changein/endof%change3Q162Q163Q15QoQYoY9M169M15YoYCreditSuisse(CHFmillion,exceptwhereindicated)Netincome/(loss)attributabletoshareholders41170779(76)(95)(91)2,884–Basicearnings/(loss)pershare(CHF)0.
020.
080.
46(75)(96)(0.
05)1.
68–Dilutedearnings/(loss)pershare(CHF)0.
020.
080.
44(75)(95)(0.
05)1.
64–Returnonequityattributabletoshareholders(%)0.
41.
57.
1––(0.
3)9.
0–Effectivetaxrate(%)83.
310.
69.
7––(42.
9)28.
6–CoreResults(CHFmillion,exceptwhereindicated)Netrevenues5,5615,4716,0732(8)16,21118,950(14)Provisionforcreditlosses50989456(44)94154(39)Totaloperatingexpenses4,4374,5044,357(1)213,31613,447(1)Incomebeforetaxes1,0749581,62712(34)2,8015,349(48)Cost/incomeratio(%)79.
882.
371.
7––82.
171.
0–Assetsundermanagementandnetnewassets(CHFbillion)Assetsundermanagement1,255.
21,218.
41,285.
83.
0(2.
4)1,255.
21,285.
8(2.
4)Netnewassets11.
912.
116.
2(1.
7)(26.
5)34.
544.
8(23.
0)Balancesheetstatistics(CHFmillion)Totalassets806,711821,164858,420(2)(6)806,711858,420(6)Netloans274,606273,835274,82500274,606274,8250Totalshareholders'equity44,27644,96244,757(2)(1)44,27644,757(1)Tangibleshareholders'equity39,35940,02636,022(2)939,35936,0229BaselIIIregulatorycapitalandleveragestatisticsCET1ratio(%)14.
114.
214.
0––14.
114.
0–Look-throughCET1ratio(%)12.
011.
810.
2––12.
010.
2–Look-throughCET1leverageratio(%)3.
43.
32.
8––3.
42.
8–Look-throughTier1leverageratio(%)4.
64.
43.
9––4.
63.
9–ShareinformationSharesoutstanding(million)2,088.
32,081.
41,633.
70282,088.
31,633.
728ofwhichcommonsharesissued2,089.
92,089.
91,638.
40282,089.
91,638.
428ofwhichtreasuryshares(1.
6)(8.
5)(4.
7)(81)(66)(1.
6)(4.
7)(66)Bookvaluepershare(CHF)21.
2021.
6027.
40(2)(23)21.
2027.
40(23)Tangiblebookvaluepershare(CHF)18.
8519.
2322.
05(2)(15)18.
8522.
05(15)Marketcapitalization(CHFmillion)26,56321,54738,37123(31)26,56338,371(31)Numberofemployees(full-timeequivalents)Numberofemployees47,69047,18048,0901(1)47,69048,090(1)FinancialcalendarandcontactsFinancialcalendarFourthquarterresults2016Wednesday,February15,2017InvestorrelationsPhone+41443337149E-mailinvestor.
relations@credit-suisse.
comInternetwww.
credit-suisse.
com/investorsMediarelationsPhone+41844338844E-mailmedia.
relations@credit-suisse.
comInternetwww.
credit-suisse.
com/newsAdditionalinformationResultsandfinancialinformationwww.
credit-suisse.
com/resultsPrintedcopiesCreditSuisseAGGCPD18070ZurichSwitzerlandUSshareregisterandtransferagentDeutscheBankADSdepositarybankTrustCompanyAmericasAddressAmericanStockTransfer&TrustCo.
OperationsCenter620115thAvenueBrooklyn,NY11219UnitedStatesUSandCanadaphone+18662492593PhonefromoutsideUSandCanada+17189218124E-mailDB@amstock.
comSwissshareregisterandtransferagentAddressCreditSuisseGroupAGShareRegisterRXS8070ZurichSwitzerlandPhone+41443320202E-mailshare.
register@credit-suisse.
comImportantinformationWhenwerefertowealthmanagementfocuseddivisionsthroughoutthisdocument,wemeanAPAC,IWMandSUB.
Referencestothe"wealthmanagement"businessesinAPAC,IWMandSUBrefertothosedivisions'PrivateBankingbusinesses.
Whenwerefertooperatingdivisionsthroughoutthisdocument,wemeanSUB,IWM,APAC,IBCMandGM.
AsofJanuary1,2013,BaselIIIwasimplementedinSwitzerlandalongwiththeSwiss"TooBigtoFail"legislationandregulationsthereunder.
AsofJanuary1,2015,theBISleverageratioframework,asissuedbyBCBS,wasimplementedinSwitzerlandbyFINMA.
TherelateddisclosuresareinaccordancewithCreditSuisse'sinterpretationofsuchrequirements,includingrelevantassumptions.
ChangesintheinterpretationoftheserequirementsinSwitzerlandorinanyofCreditSuisse'sassumptionsorestimatescouldresultindifferentnumbersfromthoseshownherein.
Referencestophase-inandlook-throughincludedhereinrefertoBaselIIIrequirements.
Phase-inundertheBaselIIIcapitalframeworkreflectsthatfortheyears2014–2018,therewillbeafive-year(20%perannum)phaseinofgoodwillandotherintangibleassetsandothercapitaldeductions(e.
g.
,certaindeferredtaxassets)andfortheyears2013–2022,therewillbeaphaseoutofcertaincapitalinstruments.
Look-throughassumesthefullphase-inofgoodwillandotherintangibleassetsandotherregulatoryadjustmentsandthefullphaseoutofcertaincapitalinstruments.
Unlessotherwisenoted,leverageexposureisbasedontheBISleverageratioframeworkandconsistsofperiod-endbalancesheetassetsandprescribedregulatoryadjustments.
MandatespenetrationreflectsadvisoryanddiscretionarymandatesaspercentageoftotalAuM,excludingAuMfromtheexternalassetmanager(EAM)business.
Wemaynotachievealloftheexpectedbenefitsofourstrategicinitiatives.
Factorsbeyondourcontrol,includingbutnotlimitedtothemarketandeconomicconditions,changesinlaws,rulesorregulationsandotherchallengesdiscussedinourpublicfilings,couldlimitourabilitytoachievesomeoralloftheexpectedbenefitsoftheseinitiatives.
Thisdocumentcontainsforward-lookingstatementsthatinvolveinherentrisksanduncertainties,andwemightnotbeabletoachievethepredictions,forecasts,projectionsandotheroutcomeswedescribeorimplyinforward-lookingstatements.
Anumberofimportantfactorscouldcauseresultstodiffermateriallyfromtheplans,objectives,expectations,estimatesandintentionsweexpressintheseforward-lookingstatements,includingthoseweidentifyin"RiskFactors"inourAnnualReportonForm20-FforthefiscalyearendedDecember31,2015filedwiththeUSSecuritiesandExchangeCommission,andinotherpublicfilingsandpressreleases.
Wedonotintendtoupdatetheseforward-lookingstatementsexceptasmayberequiredbyapplicablelaw.