Fourth Quarter and Full Year 2016 Results Presentation
Strategic Resolution Unit
Continued execution of our strategy - 4Q16 adjusted expenses down 58% YoY;
leverage exposure and RWA down 39%
Key financials in USD mn
Adjusted
4Q16
3Q16 4Q15
2016
2015
Net revenues
(201)
Provision for credit losses
28
6
(170) (125) (1,283)
99
557
Total operating expenses
287
351
688 1,584
Pre-tax loss
(516)
(527)
138
2,677
(912) (2,982) (2,258)
115
Real estate gains
(4)
(4)
Loss on business sales
1
6
Restructuring expenses
1
23
158
123
158
Major litigation expenses
2,029
324
258
2,353
295
Pre-tax loss reported
(2,543)
(874) (1,328) (5,460) (2,711)
Key metrics in USD bn
4Q16
3Q16 4Q15
2016
2015
Risk-weighted assets
44
55
73
44
73
RWA excl. operational risk
25
35
54
25
54
Leverage exposure
103
119
170
103
170
Note: Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in the Appendix
CREDIT SUISSE
Key messages
Execution
Profitable growth
Legacy
Capital
Detailed Financials
Continued progress in reducing RWA and leverage exposure in
4Q16 by USD 11 bn and USD 16 bn, respectively. RWA for
derivatives, loans and financing portfolios down 38% vs. 3Q16:
Broad range of transactions executed in the quarter, including
the sale of loan portfolios, and a large number of unwinds and
compressions across macro and credit derivative products
Reductions include the sale of a loan portfolio in connection
with which GM entered into a co-investment agreement; and
the transfer of certain derivative positions from SRU to GM
which received regulatory approval to apply updated capital
models. Combined impact on RWA and Leverage for GM of
USD 3 bn and USD 8 bn, respectively
Adjusted pre-tax income improved by USD 11 mn vs. 3Q16:
Reduction to adjusted operating expenses vs. prior quarter,
partially offset by lower fee based revenues from legacy
investment banking businesses due to accelerated unwinds;
exit cost at ~0.5% of RWA; revised lifetime guidance to < 3%
On a year-on-year basis, RWA and leverage exposure reduced by
USD 29 bn (39%) and USD 67 bn (39%), respectively. Bilateral
derivatives trade count of 142k, down 191k vs. 4Q15, or 57%
Full year 2016 adjusted operating expenses lower by USD 1.1 bn,
or 41%, driven by the exit from US Private Banking onshore
business and reduced footprint in legacy Investment Banking
businesses
4Q16 includes a USD 2 bn expense provision in connection with
the settlement with the US Department of Justice related to our
legacy residential mortgage-backed securities business
February 14, 2017
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