Credit Suisse Invest

Credit Suisse Invest
Strategic Reorientation of Wealth Management
Hans Baumgartner, Head PWMC Region Mittelland,
11 April 2016
Agenda
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About Credit Suisse
Wealth Management: current state and related challenges
Credit Suisse Invest
Questions and answers
Credit Suisse Invest - Strategic Reorientation of Wealth Management
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Credit Suisse: an integrated global bank
3,840
relationship
managers globally
150
different nations
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Credit Suisse: an integrated global bank
Swiss Universal Bank
Universal bank for private clients (retail, wealth management),
commercial and institutional clients (excl. asset management services)
primarily domiciled in Switzerland
International Wealth Management
Global wealth management arm serving non-Swiss and non-Asia Pacific
domiciled (U)HNWI clients, and global asset management business,
including Swiss products and clients
Asia Pacific
Integrated private and investment bank for our Asia Pacific domiciled
(U)HNWI, corporate, and institutional clients
Global Markets
Sales & trading platforms covering the Americas and EMEA
Strategic Resolution Unit
Facilitates the rapid wind-down of the bank’s portfolios
that do not fit our new strategic direction in order to
reduce the negative impact on the overall Group
performance.
Investment Banking & Capital Markets
Advisory and underwriting platforms covering the Americas and EMEA
EMEA = Europe, Middle East and Africa.
(U)HNWI = (Ultra)-high-net-worth individuals.
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Swiss Universal Bank – Switzerland core to the strategy
The Swiss Universal Bank division offers
comprehensive advice and a wide range of financial
solutions to private, corporate and institutional clients
domiciled in our home market Switzerland, which offers
attractive growth opportunities and where we can build
on a strong market position across our key businesses.
Our Private Banking business has a leading franchise
in Switzerland and serves UHNWI, HNWI and retail
clients.
Our Corporate & Institutional Banking business
serves large corporate clients, small and medium size
enterprises, institutional clients, financial institutions and
commodity traders.
Empower to grow
Drive efficiency
Focus on HNWI and capture synergies with
mid/large SMEs by becoming the
“Bank for Entrepreneurs”
Increase cost efficiency through optimized
footprint, automation and operational
leverage
Exploit growth opportunities in UHNWI
End-to-end accountability and responsibility
over Swiss costs and investments
Focus to simplify
Invest in brand
Concentrate on Swiss-domiciled clients
Further strengthening of brand and reputation
in Switzerland
1 Including mortgages and loans to private sector companies, to the public sector and to private clients., (U)HNWI = (Ultra)-high-net-worth individuals.
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Group and business divisions targets
Capital ratio progression
Swiss Universal
Bank
International
Wealth
Management
Dividend
policy
We plan to continue our existing policy of recommending a
dividend of CHF 0.70 per share with a scrip alternative
until we reach our 2015–2018 look-through CET1 and
leverage ratio targets and have greater clarity on potential
regulatory changes and litigation risks1
Asia
Pacific
CET1 = Common equity tier 1 1 Our intention would be to end the scrip alternative and recommend a move to a full cash dividend no later than 2017. Furthermore, in the longer term, we would aim to distribute a minimum of 40% of our operating free capital.
The Board will consider setting a higher payout ratio as appropriate in due course.
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Corporate Responsibility at Credit Suisse: our responsible approach
to business is a key factor in determining our long-term success
Responsibility in Banking
As part of our responsibility in banking, we consider social
and environmental aspects when conducting our business
and develop sustainable products and services.
Responsibility in Economy and Society
We make an important contribution to the functioning of the
economy through our banking activities and work with
selected partner organizations to help address social
challenges.
Responsibility as an Employer
We want to be an employer of choice worldwide and offer
our employees varied career opportunities in a multicultural
environment.
Responsibility for the Environment
We take environmental impacts into account when
conducting our business, and we implement operational
measures to improve our environmental performance.
Credit Suisse Invest - Strategic Reorientation of Wealth Management
17,775 million
assets invested according to
sustainability criteria in CHF
20,347
of our employees around the world volunteered
their time to help charitable causes
68,200
classroom-delivered training days
186,818
hours of desktop videoconferencing
were used, helping to reduce our
CO2 emissions
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Executive Board
James Amine
CEO Investment
Banking & Capital
Markets
Thomas P.
Gottstein
CEO Swiss
Universal Bank
Pierre-Olivier Bouée Romeo Cerutti
Chief Operating
General Counsel
Officer
Business divisions
Iqbal Khan
Timothy O’Hara
Helman Sitohang
CEO International
CEO Global Markets CEO Asia Pacific
Wealth Management
Tidjane Thiam
Chief Executive Officer
Shared Services
Peter Goerke
Head of Human
Resources,
Communications and
Branding
Credit Suisse Invest - Strategic Reorientation of Wealth Management
Joachim Oechslin
David Mathers
Chief Financial Officer Chief Risk Officer
Lara Warner
Chief Compliance
and Regulatory
Affairs Officer
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Credit Suisse Invest - Strategic Reorientation of Wealth Management
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Agenda
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About Credit Suisse
Wealth Management: current state and related challenges
Credit Suisse Invest
Questions and answers
Credit Suisse Invest - Strategic Reorientation of Wealth Management
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Wealth Management – Global Market
«Market expansion was
driven by performance
of existing assets and
the creation of new
wealth.»
«Global private financial wealth grew
by nearly 8% in 2014 to reach a total
of $156 trillion.»
Source: BCG Global Wealth 2015: Winning the Growth Game
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Wealth Management – Global Market
«Over the next years total private
wealth globally is projected to post a
compound annual growth rate
(CAGR) of 6% to reach an estimated
$210 trillion in 2019»
Source: BCG Global Wealth 2015: Winning the Growth Game
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Wealth Management
Net worth has grown every year this century, except for the financial
crisis period 2007-2008.
The global market grows - driven by economic development in emerging markets,
generational transfers of funds, and ongoing wealth concentration.
The financial services industry has consistently produced above-GDP revenue growth,
attractive profitability with low capital requirements, and ample liquidity.
Among the ten countries with a long time series on wealth distribution,
Switzerland is alone in displaying no significant reduction in wealth inequality
over the past century.
Wealth managers worldwide are considered to be among the most attractive
business segments in the financial services industry.
Source: James Davies, Rodrigo Lluberas and Anthony Shorrocks, Credit Suisse Global Wealth Databook 2015. McKinsey Global Wealth Management Survey 2014
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Multiple challenges lead to re-thinking
of investment advisory offering
Higher client expectations
§
Increasing regulation
§
Fiercer competition
“New Reality” in wealth
management:
explicitly defined,
monitored & priced
investment solutions
New opportunities through technology
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Credit Suisse Invest
Re-Definition of Investment Advice
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Agenda
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About Credit Suisse
Wealth Management: current state and related challenges
Credit Suisse Invest
Questions and answers
Credit Suisse Invest - Strategic Reorientation of Wealth Management
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Live Demo
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Credit Suisse Invest provides Superior Value Proposition
Client related
Bank related
Self segmentation / choice of width
and depth of services
Explicit and transparent fee for service
and advice, not included in transaction
fees
Inducement-free offering adds to
attractiveness of pricing
Comprehensive offering for all clients
Consistency in delivery of expertise to
the client directly and via RM
Increased efficiency through clear role
distinction of client-facing roles
Streamlining the bank's efforts to fulfil
explicit client needs (Research / Lead
Offering / Investment Ideas / Client
Reporting / Online Tools / etc…)
Tangible value proposition for
attracting share of wallet / new clients
Create a sustainable business model
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Agenda
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About Credit Suisse
Wealth Management: current state and related challenges
Credit Suisse Invest
Questions and answers
Credit Suisse Invest - Strategic Reorientation of Wealth Management
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Questions?
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Thank you!
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Disclaimer
Cautionary statement regarding forward-looking statements
This presentation contains forward-looking statements that involve inherent risks and uncertainties, and we might not be able to achieve the predictions, forecasts, projections and
other outcomes we describe or imply in forward-looking statements. A number of important factors could cause results to differ materially from the plans, objectives, expectations,
estimates and intentions we express in these forward-looking statements, including those we identify in "Risk Factors" in our Annual Report on Form 20-F for the fiscal year ended
December 31, 2014 and in "Cautionary statement regarding forward-looking information" in our third quarter earnings release 2015 filed with the US Securities and Exchange
Commission, and in other public filings and press releases. We do not intend to update these forward-looking statements except as may be required by applicable law.
Statement regarding non-GAAP financial measures
This presentation also contains non-GAAP financial measures, including adjusted cost run-rates. Information needed to reconcile such non-GAAP financial measures to the most
directly comparable measures under US GAAP can be found in the presentation to investors slides for the third quarter 2015, which is available on our website at credit-suisse.com.
Statement regarding capital, liquidity and leverage
As of January 1, 2013, Basel 3 was implemented in Switzerland along with the Swiss “Too Big to Fail” legislation and regulations thereunder. As of January 1, 2015, the Bank for
International Settlements (BIS) leverage ratio framework, as issued by the Basel Committee on Banking Supervision (BCBS), was implemented in Switzerland by FINMA. Our related
disclosures are in accordance with our interpretation of such requirements, including relevant assumptions. Changes in the interpretation of these requirements in Switzerland or in any
of our assumptions or estimates could result in different numbers from those shown in this presentation. Capital and ratio numbers for periods prior to 2013 are based on estimates,
which are calculated as if the Basel 3 framework had been in place in Switzerland during such periods.
Unless otherwise noted, leverage exposure is based on the BIS leverage ratio framework and consists of period-end balance sheet assets and prescribed regulatory adjustments.
Leverage amounts for 4Q14, which are presented in order to show meaningful comparative information, are based on estimates which are calculated as if the BIS leverage ratio
framework had been implemented in Switzerland at such time. Beginning in 2015, the Swiss leverage ratio is calculated as Swiss total capital, divided by period-end leverage
exposure. The look-through BIS tier 1 leverage ratio and CET1 leverage ratio are calculated as look-through BIS tier 1 capital and CET1 capital, respectively, divided by end-period
leverage exposure.
The re-segmented financial information is preliminary and subject to further review
Unless otherwise noted, this presentation contains certain historical financial information that has been re-segmented to approximate what our results under our new structure would
have been, had it been in place from January 1, 2014. Such information is preliminary in nature and subject to review, evaluation and refinement, has not been audited or reviewed by
our independent public accountants and can be expected to change in certain respects before any final re-segmentation is published. In addition, “Illustrative”, “Ambition” and “Goal”
presentations are not intended to be viewed as targets or projections, nor are they considered to be Key Performance Indicators. All such presentations are subject to a large number
of inherent risks, assumptions and uncertainties, many of which are completely outside of our control. Accordingly, this information should not be relied on for any purpose.
We may not achieve the benefits of our strategic initiatives
We may not achieve all of the expected benefits of our strategic initiatives. Factors beyond our control, including but not limited to the market and economic conditions, changes in
laws, rules or regulations and other challenges discussed in our public filings, could limit our ability to achieve some or all of the expected benefits of these initiatives.
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Build your
career portfolio
We help you build your skills,
network and experience
3. Build your career portfolio
Career Opportunities
Our Programs
Internship
Summer Internship
Career Start
4-6 months
10-12 weeks
12-18 months
internship to get an
insight into business
practice
summer internship program to
gain experience in a particular
area
Career start program in
a challenging position
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Recruiting process
Apply online
www.credit-suisse.com/careers
Phone interview
With the Hiring Manager or
With the Campus Recruiter
Online Assessment
Personal competencies
Abilities
Face to face interview
With Hiring Manager and the Campus Recruiter
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Contact Us
Visit our careers website
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Get in touch or ask questions
[email protected]
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