Fourth Quarter and Full Year 2016 Results Presentation
Global Markets
Global Markets delivers profitability in a restructuring year
Adjusted key financials in USD mn
Key messages
4Q16
3Q16
4Q15
2016
2015
Equities
o/w SMG
441
330
531
1,861
2,388
20
15
84
183
423
Credit
Solutions
608
740
366
2,501
3,131
259
359
316
1,384
1,759
Other
(52)
(33)
(45)
(171)
(154)
Net revenues
1,256
1,396 1,168
5,575
7,124
Provision for credit losses
(3)
(6)
(4)
(4)
11
Total operating expenses
1,236
1,251
1,679
5,295
5,977
Pre-tax income
23
151
(507)
284
1,136
Cost/income ratio
98%
90%
144%
95%
84%
Return on regulatory capital+
1%
4%
n/m
2%
7%
Key metrics in USD bn
4Q16
3Q16 4Q15
2016
2015
Risk-weighted assets
51
53
64
51
64
Leverage exposure
278
296
280
278
280
Execution
Profitable growth
Legacy
Capital
Detailed Financials
Substantial rebound in profitability vs. 4Q15 driven by an 8%
increase in revenues on a 20% reduction in RWA and 26%
reduction in costs, highlighting strength of resized franchise
Strong results and leading market positions in credit products,
securitized products and emerging markets vs. 4Q15 with
outperformance in the Americas
Higher equities revenues in a seasonally slower quarter, up 34%
vs. 3Q16, reflecting an increase in trading volumes
YoY revenue decline in equity derivatives on lower volatility, albeit
significant sequential improvement as client activity increased;
further collaboration with IWM clients core management focus for
2017
Operating expenses declined 26% vs. 4Q15 reflecting lower
compensation and benefits and other expenses
4Q16 annualized 1 cost base exit rate below USD 5.2 bn²;
on track to achieve 2018 ambition of < USD 4.8 bn in costs
Expenses declined USD 682 mn vs. 2015 driven by
substantial progress on accelerated cost initiatives
Increased capital efficiency and reduced risk profile; operating
below year-end 2016 RWA ceiling of USD 60 bn and leverage
exposure ceiling of USD 290 bn
Note: All financial numbers presented and discussed are adjusted, unless otherwise stated. Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in the Appendix
1 Annualized numbers do not take account of variations in operating results, seasonality and other factors and may not be indicative of actual, full-year results
2 Estimated 4Q16 annualized exit rate shown at Investor Day 2016
CREDIT SUISSE
February 14, 2017
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