Credit Suisse Capital Metrics and Core Results 9M16
3Q16 results
Strategic Resolution Unit
Substantial reduction in RWA and leverage exposure; adjusted expenses down 47% YoY
Key financials in USD mn
3Q16
2Q16 3Q15
A 2016 A 3Q15
Net revenues
(170)
(371)
(90)
+54%
(89)%
Provision for credit losses
6 (38)
21
Total operating expenses
351
424
661
(17)%
(47)%
Pre-tax loss
(527)
(757)
(772)
Adjusted
Restructuring expenses
23
21
Major litigation expenses
324
27
Pre-tax loss reported
(874)
(778)
(799)
Key metrics in USD bn
3Q16
2Q16
3Q15
A 2016 A 3Q15
Risk-weighted assets
55
58
75
(5)%
(27)%
RWA excl. operational risk
35
38
56
(9)%
(37)%
Leverage exposure
119
148
196
(20)%
(40)%
Key messages
Substantial progress in reducing leverage exposure and RWA in
3Q16 by USD 29 bn and USD 3 bn, respectively:
Loan and financing exposure reduced by more than 15% in the
quarter through the sale of loans and facilities, in addition to the
sale of Credit Suisse Park View BDC, Inc.
Bilateral derivatives trade count reduced by ~30% in the
quarter through CDS step-outs; compression and unwinds
across the macro and emerging market portfolios
■ Adjusted pre-tax income improved by USD 230 mn vs. 2016:
Reduced revenue losses compared to 2016, driven by a
recovery from 1H16 adverse credit markets, partially offset by
losses on life insurance and a credit provision on ship finance
portfolios
Exit costs at ~1% of RWA due to constructive market
conditions
Continued progress on expense reductions; 3Q16 expenses
down USD 73 mn vs. prior quarter
Increase in major litigation provisions of USD 324 mn
On a year-on-year basis, leverage exposure and RWA reduced by
USD 78 bn and USD 20 bn, respectively; adjusted operating
expenses lower by USD 310 mn, mainly driven by the exit from US
Private Banking onshore business and reduced footprint in legacy
Investment Banking businesses
Note: Adjusted results are non-GAAP financial measures. A reconciliation to reported results is included in the Appendix
CREDIT SUISSE
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