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Results excluding certain items included in our reported results are non-GAAP financial measures. Following the reorganization implemented at the beginning of 2022, we have amended the presentation of our adjusted results. Management believes that such results provide a useful presentation of our operating results for purposes of assessing our Group and divisional performance consistently over time, on a basis that excludes items that management does not consider representative of our underlying performance. Provided below is a reconciliation of our adjusted results to the most directly comparable US GAAP measures. Reconciliation of adjustment items (1/2) Group in CHF mn 4Q22 3Q22 Net revenues Real estate (gains)/losses 3,060 3,804 2Q22 3,645 1Q22 4Q21 2022 4,412 4,582 14,921 2021 22,696 Wealth Management in CHF mn 4Q22 3Q22 Net revenues 1,144 1,365 2Q22 1,266 1Q22 4Q21 2022 2021 1,177 1,377 4,952 7,031 (191) (13) (164) (224) (368) (232) Real estate (gains)/losses (122) (25) (19) (147) (19) Impairment on York Capital Management Archegos Adjusted net revenues (Gains)/losses on business sales Valuation adjustment related to major litigation (Gain)/loss on equity investment in Allfunds Group 75 (10) 168 353 (Gain)/loss on equity investment in SIX Group AG 20 19 (5) Gain on equity investment in Pfandbriefbank (6) 10 1 3 (13) 4 29 (Gains)/losses on business sales 1 3 (17) 4 24 69 Major litigation recovery (49) (31) 586 (622) Gain related to InvestLab transfer R 70 34 70 (Gain)/loss on equity investment in Allfunds Group 75 (10) 168 353 (31) 586 (622) (6) - (Gain)/loss on equity investment in SIX Group AG 10 9 (2) 35 17 35 10 113 Adjusted net revenues 1,107 1,355 1,444 1,506 1,345 5,412 6,400 (17) (17) 470 Provision for credit losses (11) 7 (11) 24 (7) 9 0 Provision for credit losses 2,964 3,798 41 3,820 4,582 4,384 15,164 22,544 Total operating expenses 1,354 1,337 1,373 1,510 1,227 5,574 4,724 221 64 (110) (20) 16 4,205 Restructuring expenses (73) (11) (15) (10) (7) (109) (19) Archegos 155 5 155 (4,307) Major litigation provisions (6) (54) (16) (230) (3) (306) (62) Adjusted provision for credit losses 41 21 64 45 (15) 171 (102) Expenses related to real estate disposals (2) (1) (3) (3) (7) Total operating expenses 4,334 4,125 4,754 4,950 6,266 18,163 19,091 Expenses related to equity investment in Allfunds Group (2) (2) (20) Goodwill impairment (23) (1,623) Restructuring expenses (352) (55) (80) (46) (33) (23) (533) (1,623) Adjusted total operating expenses 1,273 1,270 1,341 1,270 1,214 5,154 4,616 (103) Income/(loss) before taxes (199) 21 (96) (357) 157 (631) 2,307 Major litigation provisions (34) (178) (434) (653) (514) (1,299) (1,221) Adjusted income/(loss) before taxes (155) 78 114 212 138 249 1,784 Expenses related to real estate disposals (15) (6) (3) (11) (24) (56) Expenses related to equity investment in Allfunds Group (2) (2) (20) Swiss Bank in CHF mn 4Q22 3Q22 2Q22 1Q22 4Q21 2022 2021 Archegos (8) (8) (13) (11) (14) (40) (21) Net revenues 972 962 1,050 1,109 1,209 4,093 4,316 Adjusted total operating expenses 3,938 3,869 4,198 4,237 4,071 16,242 16,047 Real estate (gains)/losses (51) Income/(loss) before taxes (1,315) (342) (1,173) Adjusted income/(loss) before taxes (1,015) (92) (442) (428) 300 (1,664) (3,258) (600) (Gain)/loss on equity investment in SIX Group AG 10 223 (13) (84) (205) (148) (213) 10 (3) 35 17 35 328 (1,249) 6,599 Gain on equity investment in Pfandbriefbank (6) (6) Adjusted net revenues 931 956 1,047 1,022 1,039 3,956 4,138 Provision for credit losses 28 21 18 23 (4) 90 4 Total operating expenses 655 558 630 615 606 2,458 2,394 Restructuring expenses (11) (6) (3) (1) (1) (21) (11) Expenses related to real estate disposals (4) Adjusted total operating expenses 644 552 627 614 605 2,437 2,379 Income/(loss) before taxes 289 383 402 471 607 1,545 1,918 Adjusted income/(loss) before taxes 259 383 402 385 438 1,429 1,755 41 CREDIT SUISSE
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