Credit Suisse Capital Metrics and Core Results 9M16
Strategic actions
Summary of strategic actions
A
B
C
D
Strengthen capital base
Strengthen equity capital base with focus
on maximizing free capital generation
Fixed costs reduction²
Cost reduction program primarily
related to fixed cost base
Rebalancing
businesses
Optimize resource allocation
and focus on high-returning
businesses with scale
Returning capital
to shareholders
EM Emerging Markets.
RWA Risk-weighted assets.
maintain 11-12% 1
CET 1 ratio in 2016
approx. 13%
CET 1 ratio
end-2018 target
approx. 5 to 6%
Tier 1 leverage ratio
end-2018 target
Gross cost reductions: CHF 1.7 bn by end-2016 and CHF 4.3 bn by end-2018
Net cost reductions: CHF 1.4 bn by end-2016 and CHF >3.0 bn by end-2018
Operating cost base: CHF 19.8 bn by end-2016 and CHF <18 bn by end-2018
Switzerland
increase profitability of
the stable and high
return cash flows in
home market
Recommending
CHF 0.70 per share
dividend with scrip option³
Asia Pacific
and other EM
increase resource allocation
to Asia Pacific and replicate
our success in other
Emerging Markets
Intend to move to 40%
operating FCG payout as
capital targets are met
Investment
Banking
businesses
Right-sizing with significant
reduction where returns do
not exceed cost of capital;
Global Markets to operate
within ceilings of
USD 60 bn of RWA
and USD 290 bn
of leverage exposure
1 Making no provision for significant litigation expenses. 2 "Adjusted operating expenses at constant FX rates" and "adjusted non-compensation operating
expenses at constant FX rates" include adjustments as made in all our disclosures for restructuring expenses, major litigation expenses and a goodwill impairment taken in 4Q15 as well as adjustments for FX, applying the
following main currency exchange rates for 1Q15: USD/CHF 0.9465, EUR/CHF 1.0482, GBP/CHF 1.4296, 2015: USD/CHF 0.9383, EUR/CHF 1.0418, GBP/CHF 1.4497, 3Q15: USD/CHF 0.9684, EUR/CHF
1.0787, GBP/CHF 1.4891, 1Q16: USD/CHF 0.9928, EUR/CHF 1.0941, GBP/CHF 1.4060, 2016: USD/CHF 0.9756, EUR/CHF 1.0956, GBP/CHF 1.3845, 3Q16: USD/CHF 0.9728, EUR/CHF 1.0882, GBP/CHF
1.2764. These currency exchange rates are unweighted, i.e. a straight line average of monthly rates. We apply this calculation consistently for the periods under review. Adjusted non-compensation expenses are adjusted
operating expenses excluding compensation and benefits. To calculate adjusted non-compensation expenses at constant FX rates, we subtract compensation and benefits (adjusted at constant FX rates in the manner described
above) from adjusted operating expenses at constant FX rates. 3 Until we reach our capital target, we will recommend CHF 0.70 per share with a scrip alternative; we will discontinue the scrip once we have clarity on
regulatory requirements and litigation risks. In any event, we will not continue with the scrip beyond 2017.
CREDIT SUISSE
November 2016
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