1. ANNUAL REPORT 1999/2000
www.credit-suisse.com

2. Share performance
400
350
300
250
200
150
100
Swiss Market Index
Credit Suisse Group
1996 1997 1998 1999 2000
Market capitalisation as at 31 December
CHF
bn
80
70
60
50
40
30
20
10
0
90 91 92 93 94 95 96 97 98 99
Change
Share data 1999 1998 +/-%
Number of shares issued at 31 December 272,206,488 269,086,369 1
Shares ranking for dividend at 31 December 272,206,488 269,086,369 1
Average 271,310,760 267,542,466 1
Shares ranking for dividend at 31 March 2000/1999 273,842,638 272,101,488 1
Market capitalisation at year-end (CHF m) 86,153 57,854 49
Earnings per share (CHF) 19.24 11.47 68
Earnings per share fully diluted (CHF) 19.11 11.40 68
Book value per share (CHF) 119.84 96.02 25
Share price (CHF)
at year-end 316.5 215 47
for inclusion in Swiss tax returns 302 214 41
year high 316.5 382 –17
year low 212 149.5 42
Dividend (CHF) 7* 5 40
* proposal of the Board of Directors to the AGM

3. FINANCIAL HIGHLIGHTS 1999
1999 1998 Change REVENUE COMPOSITION
Consolidated income statement in CHF m in CHF m +/–% 1999
Revenue 227,870 21,700 28
Gross operating profit 18%
9,132 6,641 38 19%
Net profit 5,221 3,068 70
Cashflow 7,983 6,066 32
Change
ROE in % in % +/–% 24%
39%
Credit Suisse Group 18.2 11.7 56
Balance sheet business
Banking business 22.1 10.0 121 Commission and service fees
Trading
Insurance business 11.0 10.3 7
Insurance
31 Dec. 1999 31 Dec. 1998 Change
Consolidated balance sheet in CHF m in CHF m +/–%
Total assets 722,746 652,437 11
Total shareholders’ equity 34,368 28,162 22
– of which minority interests 1,747 2,325 –25
Total risk-weighted assets (BIS) 213,298 202,078 6
BIS tier 1 capital 28,261 24,198 17
– of which non-cumulative preferred stock 200 0 –
BIS total capital 40,843 36,000 13
31 Dec. 1999 31 Dec. 1998 Change
Assets under management in CHF bn in CHF bn +/–%
1,180 938 26
Total assets under management
604 523 15
– of which advisory
576 415 39
– of which discretionary
Change
BIS ratios in % in % +/–%
BIS tier 1 ratio
Credit Suisse 6.8 7.1 –4
Credit Suisse First Boston 9.9 8.4 18
Credit Suisse Group 13.2 12.0 10
BIS total capital ratio Credit Suisse Group 19.1 17.8 7
Change
Staff numbers at year-end 1999 1998 +/–%
Total staff 663,963 61,580 4
– of which in Switzerland banking business 20,885 20,625 1
insurance business 6,569 6,827 –4
– of which outside Switzerland banking business 17,249 15,753 10
insurance business 19,260 18,375 5
Financial calendar
2000 Annual General Meeting Friday, 26 May 2000
Dividend payment Friday, 2 June 2000
Publication of 2000 interim results Thursday, 31 August 2000
Publication of 2000 annual results Tuesday, 13 March 2001
2001 Annual General Meeting Friday, 1 June 2001
1

4. HEAD OFFICE OF CREDIT SUISSE GROUP IN ZURICH
Renovation has restored the head office of Credit Suisse Group in Zurich to its
former glory. This impressive building, which incorporates both Renaissance and Baroque
elements, was designed by Jakob Friedrich Wanner and built between 1873 and 1876.
2

5. TO OUR SHAREHOLDERS
RAINER E. GUT, CHAIRMAN OF THE
BOARD OF DIRECTORS (RIGHT), AND
LUKAS MÜHLEMANN, CHIEF EXECUTIVE
OFFICER
Dear Shareholders
We can look back on 1999 as a very good year. Credit Suisse Group increased its net
profit by 70% to CHF 5.2 bn and posted a 26% growth in assets under management
to CHF 1,180 bn, CHF 62 bn of which were net inflows of new assets. All business
units contributed to the Group’s overall performance with record results.
Net operating income rose to CHF 27.9 bn, an increase of 28% on the previous
year. Especially gratifying was the 31% increase in commission and service fee income
to CHF 10.9 bn, which includes income from all areas of asset management. Operat-
ing expenses increased by 24% to CHF 18.7 bn. This included a 28% rise in person-
nel expenses to CHF 13.5 bn, largely as a result of higher staff incentive payments.
The increase in other operating expenses was attributable primarily to growth and
e-commerce initiatives. The cost/income ratio was improved from just over 72% to
71% and consolidated return on equity (ROE) rose from 11.7% to 18.2%.
The results of the individual business units were as follows: Credit Suisse more
than doubled its net profit to CHF 451 m. Its return on equity improved from 4.8%
to 10.3%.
3

6. Credit Suisse Private Banking posted a net profit of CHF 1.9 bn, an improvement of
14%, and assets under management increased by CHF 74 bn – or 18% – to
CHF 477 bn. Credit Suisse First Boston regained its earnings strength and, by con-
sistently building its lower-risk client business, achieved a net profit of CHF 1.9 bn and
a return on equity of 19%. Credit Suisse Asset Management reported a 5% increase
in net profit to CHF 235 m, while cash earnings, which have become an accepted profit
measure for the asset management business, rose by 19% to CHF 279 m. Winterthur
posted a 22% rise in net profit to CHF 1.1 bn, with both life and non-life insurance
contributing to this good result.
1999 saw the launch of innovative products and services on the Internet by all
business units. We are making intensive efforts in the area of e-commerce, which we
regard as a driver of fundamental change both in the ‘business-to-business’ and ‘busi-
ness-to-consumer’ areas of the financial services sector. Timely recognition by Credit
Suisse Group of the importance of e-commerce will enable it to capitalise on the result-
ant opportunities in all of its activities.
Since the restructuring which began in 1996, Credit Suisse Group has achieved a
sound basis for sustained and profitable growth. Between 1996 – before the new
organisation came into effect – and 1999, Group revenues increased by 19% p.a.
Assets under management grew by 22% p.a. Excluding the mergers with Winterthur,
Warburg Pincus Asset Management and other acquisitions, growth in assets under
management was 17% p.a. Based on the 1996 Group operating results, net earnings
per share (EPS) have grown by 32% p.a. to CHF 19 for 1999, and return on equity
(ROE) has increased from 10% to 18%. Book value per share has increased by
14% p.a. since 1996.
4

7. In the same period, the Credit Suisse business unit achieved revenue growth of
10% p.a., during a highly successful restructuring phase. Credit Suisse Private Banking
recorded revenue growth of 15% p.a. and growth in assets under management of
14% p.a., reflecting changes to the traditional business model as well as the launch of
innovative products and services. Revenue growth of 29% p.a. at Credit Suisse First
Boston reflects success in the execution of its strategy to focus on customer businesses
and to close the gap with its three large global competitors. In the last three years,
Credit Suisse Asset Management has posted revenue growth of 22% p.a., with 26%
growth in assets under management, while building a consolidated global business.
Winterthur has achieved net profit growth of 29% p.a. and growth in assets under
management of 14% p.a., reflecting its concentration on its core businesses, restruc-
turing efforts and market success.
The creation of the new ‘Financial Services’ management division on 1 April 2000
is aimed at further accelerating the Group’s growth and advancing the ‘Personal Finan-
cial Services Europe’ project – already successfully running in our pilot market, Italy –
with a view to expanding our asset management business in Europe under even better
conditions. The new structure will also pave the way for the closer integration of banking,
insurance and e-commerce with a view to developing new customer service models as
well as innovative products and services.
We wish to thank our customers and you, our shareholders, for the trust you have
placed in our company. We also extend our warmest thanks to our employees for their
valuable contribution to the success of Credit Suisse Group.
Rainer E. Gut Lukas Mühlemann
Chairman of the Board of Directors Chief Executive Officer
5

8. THE STRUCTURE OF CREDIT SUISSE GROUP
Credit Suisse Group is one of the world’s leading international financial
services companies. The Group goes back to 1856. It employs around 64,000
staff and is listed on the SWX Swiss Exchange, Frankfurt and Tokyo stock
exchanges. The Group comprises the Financial Services management
division, incorporating Credit Suisse (corporate and individual customers in
Switzerland), Winterthur (worldwide insurance business) and Personal
Financial Services Europe (affluent private clients in Europe); the Group also
includes Credit Suisse Private Banking (private investors) and Credit Suisse
Asset Management (institutional investors), which are responsible for asset
management, and Credit Suisse First Boston, the global investment bank. In
parallel to its conventional distribution channels, Credit Suisse Group also
offers a wide range of e-commerce services across all its business areas.
Investment Banking
Private Banking Asset Management
Financial Services
Personal Financial
Services Europe
Global investment Services for institu-
Financial services for Worldwide insurance
Services for private Corporate and indi-
banking tional and mutual fund
affluent customers in business
investors in Switzer- vidual customers in
investors worldwide
Europe
land and abroad Switzerland
4 locations in 7 locations in
5 locations in Italy, About 630 locations in
51 locations in 239 locations in
Switzerland Switzerland
with another 15 to Switzerland, present in
Switzerland Switzerland
51 locations 16 locations
follow in the course of over 30 countries
36 locations
internationally internationally
the year 2000
internationally
Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries
Bank Leu* Neue Aargauer Winterthur Life Credit Suisse Credit Suisse Asset
First Boston
Bank* (98.6%) Management, LLC
Clariden Bank* Winterthur International
International
Credit Suisse Trust
Bank Hofmann* DBV-Winterthur Group Credit Suisse & Banking
First Boston Corp.
Credit Suisse Trust* Winterthur Holding Italia Credit Suisse Asset
Credit Suisse Management
Credit Suisse Fides* Hispanowin S.A.
First Boston (Australia)
Banca di Gestione Winterthur (UK) (Europe) Ltd.
Credit Suisse Asset
Patrimoniale* Holdings
Management Ltd.
Winterthur U.S.
Holdings
Winterthur legal entity
Credit Suisse legal entity Credit Suisse First Boston legal entity
* direct holding of Credit Suisse Group
6

9. THE SIX BUSINESS UNITS OF CREDIT SUISSE GROUP
CREDIT SUISSE
Credit Suisse serves corporate and Thanks to an innovative range of products
individual customers in Switzerland through and services, especially in direct and
a multichannel strategy and an efficient Internet banking, it ranks among the
branch network covering all major locations. market leaders in its segment.
CREDIT SUISSE PRIVATE BANKING
Credit Suisse Private Banking is one of providing personal investment counselling
the world’s largest private banks and has and professional asset management for a
a strong presence in both the Swiss and sophisticated international clientele.
international markets. It specialises in
CREDIT SUISSE FIRST BOSTON
Credit Suisse First Boston is a leading services, sales and trading, and financial
global investment banking firm, providing products for users and suppliers of capital
financial advisory and capital raising around the world.
CREDIT SUISSE ASSET MANAGEMENT
Credit Suisse Asset Management is a providing first-class international
leading global asset manager focusing on management through domestic operations.
institutional and mutual fund investors,
WINTERTHUR
Winterthur Group is one of the leading and corporate customers tailor-made
insurance companies in Europe and one of insurance and pension solutions at a local
the largest internationally active insurance and international level.
companies in the world. It offers private
PERSONAL FINANCIAL SERVICES EUROPE
The Personal Financial Services Europe third-party products, personalised advice
initiative targets affluent private clients in and Internet content, and seamless ser-
selected European markets, offering a vice through a combination of traditional
wide range of Credit Suisse Group and and electronic channels.
7

10. CREDIT SUISSE GROUP BUSINESS REVIEW AND CONSOLIDATED RESULTS
Credit Suisse Group posted a net profit of CHF 5.2 bn, 70% higher than
in the previous year, and an increase in revenue of 28%. All business
units achieved record results and strong growth. The Group’s ROE
increased to 18.2%. Assets under management grew by CHF 242 bn or
26% to CHF 1,180 bn. As of 1 April 2000, the Group established the new
‘Financial Services’ management division, with the aim of advancing the
integration of banking, insurance and e-commerce and supporting
dynamic business development.
REVENUE CONTRIBUTION
Credit Suisse Group’s net operating income rose to CHF 27.9 bn, an increase of 28%
BY BUSINESS UNIT
on the previous year. Commission and service fee income, which includes income from
12%
asset management products and services, rose by 31% to CHF 10.9 bn. After last
16%
year’s setback, income from trading rose by 177% to CHF 6.6 bn. Interest income
4%
17%
rose by 2% to CHF 5.3 bn. Insurance business contributed CHF 5.1 bn
(1998: CHF 5.4 bn) to the Group’s net operating income.
Operating expenses rose by 24% to CHF 18.7 bn. Personnel expenses climbed
51%
28% to CHF 13.5 bn, mainly as a result of the 68% increase in performance-related
CS
CSPB
staff incentive payments to CHF 5.2 bn. Other operating expenses rose by 17% to
CSFB
CSAM
CHF 5.2 bn, primarily as a result of investment in growth and e-commerce initiatives.
Winterthur
The cost/income ratio improved from just over 72% to 71%.
Gross operating profit went up by 38% to CHF 9.1 bn. Depreciation, valuation
adjustments and losses decreased by 33% to CHF 2.6 bn. The overall tax bill doubled
to CHF 1.1 bn, reflecting higher income. After deducting minority interests of CHF 118 m,
Credit Suisse Group posted a net profit of CHF 5.2 bn, 70% higher than in 1998,
with no extraordinary events having a material impact on the result.
Total assets under management grew by CHF 242 bn, or 26%, to CHF 1,180 bn,
of which CHF 62 bn, or 7%, were net new assets. At year-end, total equity amounted
to CHF 34.4 bn, up 22%. Consolidated return on equity (ROE) improved from 11.7%
to 18.2%. Book value per share rose by 25% to CHF 119.84, while net profit per
STAFF NUMBERS
BY BUSINESS UNIT
share (EPS) came to CHF 19.24 (up 68%). At the Annual General Meeting on
26 May 2000 the Board of Directors will propose an increase in dividend from CHF 5
25,829 11,404
to CHF 7 per registered share.
As at 31 December 1999, Credit Suisse Group had 63,963 employees
8,371
(1998: 61,580), of which 27,454 were in Switzerland (1998: 27,452).
2,000
Strong growth in all business units Credit Suisse more than doubled its net profit
15,185
CS
to CHF 451 m. Its return on equity rose from 4.8% to 10.3%. Total revenue increased
CSPB
CSFB
by 8%, while operating expenses rose by 1%. The cost/income ratio improved further
CSAM
Winterthur
from 71% to 67%. Assets under management rose by CHF 21 bn, or 18%, to
8

11. CHF 141 bn, of which CHF 14 bn, or 12%, was accounted for by net new assets. In PROFIT CONTRIBUTION
BY BUSINESS UNIT
e-commerce, Credit Suisse continues to take a leading position in Switzerland: the
8%
number of online banking customers more than doubled to over 212,000 by the end of 19%
the first quarter of 2000. Youtrade, which became the first direct brokerage service in
4%
Switzerland when it was launched in April 1999, had around 16,000 customers by end- 35%
March 2000. Around 47% of all securities transactions at Credit Suisse are executed
online.
34%
CS
CSPB
Credit Suisse Private Banking posted a net profit of CHF 1.9 bn in 1999, a 14% CSFB
increase on the previous year. Total revenue rose by 10%, while operating expenses CSAM
Winterthur
increased by 11%, mainly owing to higher personnel expenses (up 13%) and investment
in new technologies. The cost/income ratio remained at 47%. Assets under manage-
ment expanded by CHF 74 bn or 18% to CHF 477 bn, of which CHF 20 bn
(1998: CHF 17 bn) were net new assets. Lugano-based Banca di Gestione Patri-
moniale, founded in the second half of 1999, opened its doors for business in mid-
February 2000. Zurich-based Bank für Handel und Effekten will, during the second
quarter of 2000, be integrated into Bank Hofmann, a Zurich-based independent private
bank under the umbrella of Credit Suisse Private Banking. With this step, Bank Hof-
mann will expand its asset base, while adding credit expertise to its range of services.
With new products in e-commerce (e.g. Fund Lab; Derivatives, IPOs and Bond Issues;
Insurance Lab), the business unit continued to be an innovator in the electronic delivery
of private banking products and services.
Credit Suisse First Boston regained its earnings strength, posting a net profit of
USD 1.3 bn (CHF 1.9 bn). The firm has consistently applied its strategy of growing
client business involving less capital and risk, and simultaneously achieved good
increases in market share in equities and improved its ranking in fixed income, as well
as in mergers and acquisitions. Total revenue rose by 45% on a USD basis, or by 51%
on a CHF basis, with strong contributions from equities business (up 94%/102%),
fixed income and derivatives business (up 63%/70%) and investment banking (up
22%/27%). Operating expenses went up by 35% (USD) or by 40% (CHF), reflecting
higher bonus accruals in line with revenue growth, investment in growth and e-commerce
initiatives, as well as the significant shift in the business mix.
9

12. Credit Suisse Asset Management posted a net profit of CHF 235 m (up 5%). Cash
earnings, which have become an accepted profit measure for the asset management
business, increased by 19% to CHF 279 m. Revenue increased by 35%, while operating
expenses rose by 44%, mainly reflecting investments in information technology
and European retail infrastructure, as well as the acquisition of Warburg Pincus Asset
Management. Discretionary assets under management grew by CHF 112 bn, or
53%, to CHF 324 bn, of which CHF 18.5 bn (9%) was attributable to net new assets,
CHF 57.5 bn (27%) to market gains and CHF 36 bn (17%) to the acquisition of
Warburg Pincus. Total assets under management amounted to CHF 425 bn (up 43%).
Winterthur achieved a net profit of CHF 1.1 bn, up 22%, with both non-life and life
business contributing to the overall result. Gross premiums in non-life grew by 3%.
Following 1998’s tax-driven surge in Switzerland, life insurance premiums fell by 1%;
the compounded annual growth between 1997 and 1999 was 10%. Total premiums
grew by 1%, and assets under management grew by 16% to CHF 132 bn. The strength
of Winterthur’s insurance operations permitted a significant reduction in realised capital
gains (investment return was 6.3%). As a result of this investment strategy, which
is in line with the current market environment, total reported equity went up by 20%.
Through a series of acquisitions, Winterthur increased its customer base to more than
13 m clients in 14 European countries. With regard to e-commerce, it is offering trans-
action capabilities for household contents, motor, travel and life insurance in six
European countries under the brand name ‘webinsurance’, with more to follow.
In Italy – the pilot market for ‘Personal
Personal Financial Services Europe
Financial Services Europe’ – Credit Suisse (Italy) is already successfully operating with
250 Personal Bankers and its own Call Center. Assets under management have more
than doubled since 1998 to CHF 4 bn (EUR 2.5 bn). The fifth Investment Center was
opened in Milan at the end of March and another fifteen are to follow over the course
of the year. Since April 2000, clients have also had direct access to comprehensive
financial and product information and various advisory tools over the Internet. In parallel
with these developments, preparations are currently underway for a pan-European
e-commerce platform. During the second half of the year, Credit Suisse Group will start
to offer online financial services, including brokerage, on the major European and over-
seas stock exchanges via a Group company domiciled in Luxembourg.
Credit Suisse Group is fully focused on e-commerce, which it regards
E-commerce
as a driver of fundamental change in both the ‘business-to-business’ and ‘business-to-
consumer’ areas. The Group is offering a variety of e-commerce services as an alternative
to existing channels, as seen with Direct Net at Credit Suisse, webinsurance at Winterthur
and PrimeTrade at Credit Suisse First Boston. It has also used e-commerce as a means
10

13. to offer new products and attract new customer groups, such as with youtrade,
yourhome, Fund Lab and many others. Lastly, the Group is undertaking efforts which
fundamentally transform existing business concepts through start-ups such as the
‘Personal Financial Services Europe’ project and other initiatives.
Credit Suisse Group’s strategy is to capitalise on its strong brand, on its product
and service capabilities and on the interplay between traditional and new distribution
paradigms. Its goal is to have full e-commerce capabilities in all its primary businesses
by the end of this year and to be in a position to move forward as one of the most
successful established e-commerce market participants in financial services.
In the first months of the current year, all business units have posted excel-
Outlook
lent results and are maintaining their strong growth momentum. Credit Suisse Group
expects the operating environment to remain volatile and challenging, but it is confident
of achieving further improvements in performance.
New ‘Financial Services’ management division
As of 1 April 2000 Credit Suisse Group adapted the organisational structure
which was introduced at the beginning of 1997 in line with the altered market
environment, in order to accelerate the Group’s growth further. Credit Suisse
(corporate and individual customers in Switzerland), Winterthur (worldwide insur-
ance business) and ‘Personal Financial Services Europe’ (affluent private clients
in Europe) will be combined to form the new ‘Financial Services’ management
division led by Thomas Wellauer, but will continue to appear in the market as
independent business units. Thomas Wellauer will remain Chief Executive Officer
of Winterthur.
The creation of the ‘Financial Services’ management division will pave the
way for the closer integration of banking, insurance and e-commerce with a view
to developing new customer service models as well as innovative products and
services. The focusing of strengths will facilitate the rapid and large-scale expansion
of e-commerce activities, the development of new business models in Switzerland
and the exploitation of additional business opportunities, especially in Europe.
11

14. OVERVIEW OF BUSINESS UNIT RESULTS
Credit Credit Credit Adjustments
Suisse Suisse Suisse including Credit
1999 Credit Private First Asset Winterthur Winterthur Corporate Suisse
in CHF m Suisse Banking Boston Management Non-life Life Centre Group
3,478 4,715 14,532 1,149 3,016 2) 1,564 2) – 584 27,870
REVENUE
Personnel expenses 1,239 2) 509 2)
1,401 1,418 7,999 467 476 13,509
Other operating expenses 783 2) 422 2)
866 768 2,714 377 –701 5,229
2,267 2,186 10,713 844 2,022 931 –225 18,738
TOTAL OPERATING EXPENSES
1,211 2,529 3,819 305 994 633 – 359 9,132
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 51 46 439 44 41 75 349 1,045
Valuation adjustments, provisions and losses1) 610 55 786 0 0 0 89 1,540
550 2,428 2,594 261 953 558 –797 6,547
PROFIT BEFORE EXTRAORDINARY ITEMS/TAXES
Extraordinary income 0
51 40 0 0 2 93
Extraordinary expenses 111 1)
0
17 22 0 2 152
Taxes 340
130 516 713 24 – 574 1,149
1,171
454 1,930 1,881 235 – 332 5,339
NET PROFIT BEFORE MINORITY INTERESTS
– of which minority interests 90
3 19 1 0 5 118
1,081
451 1,911 1,880 235 – 337 5,221
NET PROFIT (after minority interests)
Average allocated equity capital 11,618
4,411 2,771 9,925 540
Return on average equity capital 10.1%
10.3% n/a 19.0% n/a
Equity capital allocation as of 1 January 2000 12,607
4,611 2,875 10,494 1,054
1) net of allocation (–)/release (+) of reserves for – 68 – 31 0
general banking risks
2) defined as premiums earned (net), less claims incurred and expenses for processing claims as well as actuarial provisions, less commissions (net), plus investment
income from insurance business; expenses from the handling of both claims and investments are allocated to revenue; personnel expenses non-life: CHF 365 m, life:
CHF 253 m, other operating expenses non-life: CHF 275 m, life: CHF 212 m.
OVERVIEW OF ASSETS UNDER MANAGEMENT Credit Credit
Suisse Suisse Credit
Credit Private Asset Winterthur Suisse
31 Dec. 1999
Suisse Banking Management Group Group
in CHF bn
65 38 6 4 112
CASH & TIME DEPOSITS
SECURITIES ACCOUNTS
Fixed income, equity and balanced safekeeping accounts 34 304 386 102 825
– of which fixed income 9 140 146 66 361
– of which equities 25 164 163 36 387
– of which balanced – – 77 – 77
Investment funds 32 68 – 5 105
– of which Credit Suisse Asset Management investment funds 28 50 – – 78
Other 7 4 31 22 64
73 376 417 128 994
TOTAL SECURITIES ACCOUNTS
3 63 1 – 68
FIDUCIARY TIME DEPOSITS
141 477 425 1 174
132
TOTAL
– of which advisory – 604
139 365 100
– of which discretionary 324 132 570
2 112
Private Equity 6
1,180
TOTAL INCL. PRIVATE EQUITY
12

15. BUSINESS UNIT ACCOUNTING PRINCIPLES
Unless stated below, Group accounting and valuation principles apply.
BUSINESS UNIT FINANCIAL STATEMENTS
The Credit Suisse Group financial statements reflect the organisational structure during
1999 and show the results of all business units as if they were legal entities operating
independently.
Financial information for the Corporate Centre includes income and expenses for
the Corporate Centre as well as all consolidation adjustments. Corporate Centre costs
attributable to operating business have been allocated to the respective business units.
The business unit financial results include operating financial information only. For
further details please refer to the relevant sections.
MATERIAL CHANGES DURING 1999
The following changes are reported for the individual business units (for details see
page 59):
Credit Suisse Private Banking BGP Banca di Gestione Patrimoniale SA,
Lugano
Credit Suisse Asset Management Warburg Pincus Asset Management,
New York
Winterthur Group DBV Winterthur Holding
National Insurance and Guarantee Corp. Plc
(NIG), London
Credit Suisse First Boston Credit Suisse First Boston International
INCOME STATEMENT
General
To reconcile business unit accounts with legal entity accounts, certain adjustments have
been made in the Corporate Centre (included in the ‘Adjustments including Corporate
Centre’ column).
Items such as restructuring costs are reflected in the Corporate Centre only.
Expenses relating to projects sponsored by Credit Suisse Group that are not charged out
to the business units are included in the ‘Adjustments including Corporate Centre’ column.
Inter-business unit revenue splits
Responsibility for each of our products is allocated to one of the business units. When
one business unit contributes to the performance of another, revenue allocations have
been established to compensate for such efforts. Revenue allocations are shown in the
relevant income statement line.
13

16. Inter-business unit cost allocations
Certain administrative and IT tasks (‘services’) may be concentrated in one business
unit, which acts as a provider for the other business units. Such services are compen-
sated for on the basis of service level agreements and transfer payments (which include
personnel and other operating expenses). These are reflected in the ‘Other operating
expenses’ line of the income statement.
Real estate used by the bank
All real estate in Switzerland, mainly bank premises, is managed centrally. The costs
reflect market rent, plus an additional charge if actual costs exceed market rent. These
costs are included in ‘Other operating expenses’.
Provisions for credit risk
Actual credit provisions exceeding the anticipated credit provision derived from statistically
expected losses are booked against the ‘Reserves for general banking risks’ held at
Group level and netted in the business unit ‘Valuation adjustments, provisions and losses’
income statement line. If the actual credit provisions are below the anticipated credit
losses, the remaining amount is allocated to the ‘Reserves for general banking risks’.
Taxes
Taxes are calculated for individual business units based on average tax rates across
their geographical range. The difference between these and actual tax expenses has
been adjusted in the ‘Adjustments including Corporate Centre’ column.
BALANCE SHEET
General
The balance sheets of the banking business units include the appropriate proportion of
bank premises occupied in Switzerland and abroad.
Equity allocation
Available equity is allocated to the business units on the basis of average regulatory
capital required during the period.
KEY PERFORMANCE INDICATORS
Ratios per head have not been calculated because some Group-wide services are pro-
vided centrally by one or other of the business units, meaning that staffing required for
services received is not reflected in the recipient business unit’s headcount.
ASSETS UNDER MANAGEMENT
Assets under management include client-related on and off-balance-sheet assets.
Where two business units share responsibility for managing funds (such as investment
funds), the assets under management are included in both business units.
14

17. REPORT OF THE GROUP’S AUDITORS ON THE BUSINESS UNIT FINANCIAL
STATEMENTS OF CREDIT SUISSE GROUP, ZURICH
We have performed certain procedures enumerated below in relation to the 1999 busi-
ness unit financial statements of Credit Suisse Group and its subsidiary undertakings
(‘the business unit financial statements’) for which the Directors of Credit Suisse Group
are solely responsible. The business unit financial statements, which have been pre-
pared for illustrative purposes only, are set out on pages 12 – 34 of the annual report.
We have performed limited review procedures with regard to the business unit financial
statements as follows:
– reviewed the methodology for preparation of the business unit financial statements
as described therein and their proper application;
– given the methodology for preparation, reviewed the consistent application of the
accounting policies; and
– reviewed the reconciliation between the business unit financial statements and the
consolidated Group results presented in the audited financial statements for the
year.
Nothing has come to our attention as a result of the foregoing limited review procedures
that would lead us to believe that the business unit financial statements have not been
properly compiled on the basis of the preparation set out therein or are materially misstated.
KPMG Klynveld Peat Marwick Goerdeler SA
Brendan R. Nelson Peter Hanimann
Chartered Accountant Certified Accountant
Auditors in Charge
Zurich, 9 March 2000
15

18. CORPORATE AND INDIVIDUAL CUSTOMERS IN SWITZERLAND
1999 was a very successful year for Credit Suisse. Net profit more than
doubled to CHF 451 m compared to the previous year. The bank’s return
on equity rose from 4.8% to 10.3%. Total revenue increased by 8.4%, while
operating expenses increased modestly – up 0.6%. The cost/income
ratio improved from 71.2% to 66.6%.
During 1999, Credit Suisse continued to improve its profitability through strong revenue
growth. Lendings increased by 7.1% or CHF 6.0 bn, with mortgage growth accounting
for 5.2%, or CHF 4.4 bn. This growth was achieved without compromising lending
policy or the strict application of risk-adjusted pricing. Assets under management rose
by more than 17.5% or CHF 21 bn to CHF 141 bn, of which 11.7% or CHF 14 bn
was net new business. Credit Suisse also further grew its market share in the invest-
ment fund business. Assets under management held in investment funds grew by 34%
to CHF 32.2 bn.
In individual customer business, the trend towards greater savings through
investment in securities continued. In pensions business, the volume of security invest-
ments rose by over 70% to CHF 1.6 bn. Further progress was made in expanding
bancassurance activities. The travel insurance package launched with Winterthur at the
beginning of June was well received, selling 14,000 units. In credit card business,
a 35% increase in cards issued and the purchase of about 340,000 cards from
Europay’s Eurocard portfolio enabled Credit Suisse to double its market share to 24%.
RATIOS/KEY PERFORMANCE INDICATORS
1999 1998
Average allocated equity capital
CHF m 4,411 4,230
Allocated equity capital
CHF m (1 January 2000/1999) 4,611 4,450
Cost/income ratio 66.6% 71.2%
– excl. amortisation of goodwill 66.3% 71.1%
Return on average equity capital 10.3% 4.8%
Number of employees at 31 Dec. 11,404 11,568
Pre-tax margin 16.8% 7.6%
Personnel expenses/total expenses 61.8% 62.6%
Personnel expenses/total income 40.3% 44.0%
Number of branches at 31 Dec. 239 241
Net interest margin 2.35% 2.21%
Loan growth at 31 Dec. 7.8% 10.4%
Deposit/loan ratio at 31 Dec. 71.4% 71.8%
Assets under management
CHF bn at 31 Dec. 141 120
16

19. In corporate customer business, lendings in the low and medium risk classes grew
4.9%. Above-average growth was recorded in lendings to small and medium-sized
enterprises (SME), with venture capital financing and consultancy services for struc-
tured financing contributing to this success. Trade financing volumes were up 30%,
with Credit Suisse’s wider range of services and high level of commitment in this area
both having a positive impact. Market share in foreign exchange trading was further
expanded, reflecting the range of comprehensive, tailor-made hedging solutions on
offer.
Direct banking saw the number of online customers more than double to over
212,000 by the end of the first quarter of 2000. Youtrade, the first discount brokerage
service via telephone and the Internet in Switzerland, launched in April 1999, proved a
great success, with around 16,000 customers by the end of March 2000. 47% of all
securities transactions at Credit Suisse are now executed online via Direct Net and
youtrade.
Yourhome is another innovative package of Internet-based services from Credit
Suisse. It is aimed at people looking to buy a home and offers a full range of relevant
products and services both from Credit Suisse and from external partners. E-commerce
services will be expanded continuously. Lafferty Internet Ratings recently named Credit
Suisse the best Internet bank in Europe for the second year running.
INCOME STATEMENT 1999 1998 Change
in CHF m in CHF m in %
Net interest income 2,227 2,096 6
Net commission and service fee income 946 845 12
Net trading income 230 220 5
Other ordinary income 75 48 56
3,478 3,209 8
REVENUE
Personnel expenses 1,401 1,412 –1
Other operating expenses 866 842 3
2,267 2,254 1
TOTAL OPERATING EXPENSES
1,211 955 27
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 51 30 70
– of which amortisation of goodwill 13 4 225
Valuation adjustments, provisions and losses* 610 666 –8
PROFIT BEFORE EXTRAORDINARY ITEMS
550 259 112
AND TAXES
Extraordinary income 51 36 42
Extraordinary expenses 17 51 – 67
Taxes 130 43 202
454 201 126
NET PROFIT
– of which minority interests 3 –4 –
451 205 120
NET PROFIT (after minority interests)
– 68 11
* net of allocation (–)/release (+) of reserves for general banking risks
17

20. Total revenue increased 8.4% to CHF 3,478 m. An increase in lending
1999 results
volumes and an improved overall interest margin owing to lower interest arrears from non-
performing loans resulted in a 6% increase in interest income. Commission and service
fee income rose by 12%, with securities (including investment fund commissions) and
service fee business contributing in equal parts to this growth. Trading income gener-
ated from revenues from customers’ foreign exchange, foreign banknotes and precious
metals business rose 5%, despite the introduction of the euro. Operating expenses
increased modestly (0.6%), resulting in gross operating profit of CHF 1,211 m, up 27%.
As a result, the cost/income ratio improved a further 4.6 percentage points to 66.6%.
At CHF 99.9 bn, total assets were up 7% over 31 December 1998. Lending
volumes increased by 7.1% to CHF 90.8 bn over the same period, while customer
deposits grew by 6.4% to CHF 64.9 bn.
Valuation adjustments, provisions and losses amounted to CHF 610 m. This fig-
ure includes statistically determined credit risk costs of CHF 600 m and CHF 10 m
in other provisions. Actual valuation adjustments on credit exposure decreased by 20%
compared with 1998 and were CHF 68 m below the statistically anticipated value.
Overall, the risk profile of the credit portfolio improved substantially.
Net profit for the year was CHF 451 m, which represents an ROE of 10.3%,
more than double the result for the previous year.
18

21. BALANCE SHEET 31 Dec. 1999 31 Dec.1998 * Change
in CHF m in CHF m in %
Cash and other liquid assets 1,374 869 58
Money market claims 489 563 –13
Due from banks 654 633 3
Due from other
business units 1,080 1,187 –9
Due from customers 27,816 26,245 6
Mortgages 63,024 58,596 8
Securities and precious metals trading
portfolio 21 54 – 61
Financial investments 1,711 1,873 –9
Participations 31 49 – 37
Tangible fixed assets 2,237 2,278 –2
Accrued income and prepaid expenses 292 194 51
Other assets 1,174 894 31
99,903 93,435 7
TOTAL ASSETS
Due to banks 1,938 1,888 3
Due to other
business units 16,689 13,101 27
Due to customers, in savings and
investment accounts 36,330 37,429 –3
Due to customers, other 28,530 23,517 21
Medium-term notes 3,883 5,841 – 34
Bonds and mortgage-backed bonds 5,563 5,399 3
Accrued expenses and deferred income 504 548 –8
Other liabilities 1,501 903 66
Valuation adjustments and provisions 135 169 –20
Capital 4,830 4,640 4
– of which minority interests 13 10 30
99,903 93,435 7
TOTAL LIABILITIES
* On the basis of the changes to the accounting principles, the accounting for securities lending and borrowing transactions was
changed in 1999. Using the revised accounting rules, the 1998 balance sheet total would have been reduced by CHF 166 m.
19

22. SERVICES FOR PRIVATE INVESTORS IN SWITZERLAND AND ABROAD
In 1999 Credit Suisse Private Banking improved on its excellent perfor-
mance in 1998. Net profit before minority interests increased by 14% to
CHF 1,911 m and assets under management grew by 18% to CHF 477 bn.
The growth was the result of innovative product offerings, very strong
investment performance and the acquisition of new portfolios. Credit
Suisse Private Banking was thus able to further strengthen its position
as one of the world’s leading private banks. At the same time, it consoli-
dated its position as one of the most dynamic providers of Internet
banking services.
In 1999, Credit Suisse Private Banking produced strong growth and very good results
in an increasingly competitive environment, and invested heavily in its business activities.
In three areas, the bank faced particularly large challenges: new client groups with
different requirements, increasing performance pressure, and price pressure caused by
the deployment of new technologies. In all three areas, Credit Suisse Private Banking
tackled the challenges head on and came up with innovative solutions.
INCOME STATEMENT 1999 1998 Change
in CHF m in CHF m in %
Net interest income 898 852 5
Net commission and service fee income 3,115 2,713 15
Net trading income 592 551 7
Other ordinary income 110 159 – 31
4,715 4,275 10
REVENUE
Personnel expenses 1,418 1,250 13
Other operating expenses 768 712 8
2,186 1,962 11
TOTAL OPERATING EXPENSES
2,529 2,313 9
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 46 39 18
– of which amortisation of goodwill 7 5 40
Valuation adjustments, provisions and losses* 55 177 – 69
PROFIT BEFORE EXTRAORDINARY ITEMS
2,428 2,097 16
AND TAXES
Extraordinary income 40 60 – 33
Extraordinary expenses 22 35 – 37
Taxes 516 435 19
1,930 1,687 14
NET PROFIT
– of which minority interests 19 16 19
1,911 1,671 14
NET PROFIT (after minority interests)
– 31 25
* net of allocation (–)/release (+) of reserves for general banking risks
20

23. In traditional private banking, where the relationship manager plays the central role,
the trend away from product-focused portfolio management and towards comprehen-
sive financial advice intensified. Credit Suisse Private Banking responded by expanding
the breadth and depth of individual investment consulting services, offering its clients
added value through comprehensive solutions to complex problems.
One of Credit Suisse Private Banking’s main goals last year was to substantially
increase the quality of its products and services. It managed to do this by implement-
ing the following measures: specialisation in the products and services area, greater
use of new technologies for the benefit of clients, and selling its own and other compa-
nies’ products with the aim of offering its clients the best products on the market.
The clearest demonstration of these fundamental changes in strategy and posi-
tioning came with the wide range of online services that Credit Suisse Private Banking
launched at www.cspb.com in 1999. These services have helped to make the market
much more transparent for users:
– Fund Lab, launched in March 1999, made it possible for the first time to compare
and purchase mutual funds from a wide selection of European, American and
Asian providers. By the end of the year, more than 700 investment funds from
28 providers were available through Fund Lab. All products – the bank’s own and
those of other companies – are, with a few exceptions, offered at uniform issuing
rates.
– In April, youtrade was launched in conjunction with Credit Suisse. This service
offers investors the opportunity to trade in securities directly, quickly, securely and
on favourable terms via the Internet and by telephone.
– Since June, Investors’ Circle has allowed clients to access relevant market and
research information specifically designed for private clients.
– During October, three additional Internet services were launched: Investment Pro-
posal Online, an interactive advisory program, generates an investment proposal
based on the investor’s personal risk profile; a second database gives an overview
of the latest IPOs, derivatives and bond issues from leading issuing houses, whilst
an information service from Reuters provides market quotes and news.
– Launched in December, Insurance Lab enables clients to compare life insurance
products from different companies and select interactively the insurance product
best suited to their individual needs.
21

24. Fund Lab demonstrates the importance of the new Internet services to the bank’s
overall success. In 1999 it contributed substantially to the massive and sustained
increase in sales of proprietary and third-party funds. Every week Credit Suisse Private
Banking receives requests from external fund companies wanting to have their funds
included in Fund Lab. The database registers more than 50,000 hits per day. The inno-
vative qualities of Fund Lab won Credit Suisse Private Banking the ‘Global Fund Leader
of the Year 1999’ award from a leading UK investment fund publication.
The creation of a new bank and two acquisitions added to Credit Suisse Private
Banking’s progress in 1999. In the second half of the year, a new private bank, Banca
di Gestione Patrimoniale, was founded in Lugano. As an independent private bank, it
fills a strategic gap in the Italian-speaking market. The new bank opened for business
in the middle of February 2000. Outside Switzerland, Credit Suisse Private Banking
made two acquisitions in Spain during 1999. In March it bought Gestión Integral and in
July it acquired the private banking business of ABN AMRO. These purchases
strengthened Credit Suisse Private Banking’s position as one of the leading foreign
financial institutions in the strategically important Spanish market.
New representative offices in Beirut, Athens and Istanbul were opened during
1999 and Credit Suisse Trust Limited was established in the Bahamas. Bank für Han-
del und Effekten will, during the second quarter of 2000, be integrated into Bank Hof-
mann, an independent private bank under the umbrella of Credit Suisse Private Bank-
ing. Bank Hofmann will thus expand its asset base while adding credit expertise to its
range of services. At the end of 1999 Credit Suisse Private Banking had a total of
51 Swiss branches and a further 36 offices outside Switzerland.
BALANCE SHEET INFORMATION
31 Dec. 1999 31 Dec.1998*
in CHF m in CHF m
Total assets 99,651 83,913
Due from customers 31,902 22,544
– of which secured by mortgages 7,667 6,505
– of which secured by other collateral 22,731 14,042
* On the basis of the changes to the accounting principles, the accounting for
securities lending and borrowing transactions was changed in 1999. Using the
revised accounting rules, the 1998 balance sheet total would have been reduced
by CHF 6,515 m.
22

25. In a turbulent market characterised by inflationary fears, low bond yields
1999 results
and resurgent equity markets, Credit Suisse Private Banking was able to repeat its
strong first-half performance in the second half of the year. Assets under management
grew by CHF 74 bn, or 18%, compared with 1998, of which CHF 20 bn, or 5%, was
net new business. At year-end, assets under management totalled CHF 477 bn. Total
revenue rose by 10.3%, with most of the growth attributable to a 14.8% improvement
in commission and service fee income. Trading income and interest income were also
up, by 7.4% and 5.4% respectively. Operating expenses increased by 11.4%, the two
main drivers being greater investment in new technologies and performance-related
remuneration (+13.4%). Staff numbers decreased slightly – from 8,399 to 8,371. The
cost/income ratio was virtually unchanged on last year’s level at 47%. There was a
significant reduction in valuation adjustments, provisions and losses (down 69% at
CHF 55 m), reflecting improved risk management and much lower provisions. Net
profit increased by 14.3% to CHF 1,911 m. The ratio of net profit to average assets
under management rose from 42 bp to 44 bp.
KEY PERFORMANCE INDICATORS
1999 1998
Average allocated equity capital
CHF m 2,771 2,596
Allocated equity capital
CHF m (1 January 2000/1999) 2,875 2,200
Cost/income ratio 47.3% 46.8%
– excl. amortisation of goodwill 47.2% 46.7%
Number of employees at 31 Dec. 8,371 8,399
Pre-tax margin 51.9% 49.6%
Fee income/total income 66.1% 63.5%
Fee income/operating expenses 142.5% 138.3%
Assets under management
CHF bn at 31 Dec. 477 403
Growth in assets
under management at 31 Dec. 18.4% 5.9%
– of which volume 5.0% 4.5%
– of which performance 13.4% 1.4%
After-tax profit/Ø assets under management 44 bp 42 bp
23

26. GLOBAL INVESTMENT BANKING
1999 was a year of strong achievement and robust financial results at
Credit Suisse First Boston. Revenues rose to record levels, up 45% to
USD 9.8 bn (CHF 14.5 bn), while net profit was USD 1.3 bn (CHF 1.9 bn),
producing a 19% return on equity. Credit Suisse First Boston gained
market share worldwide in almost all its client business areas for
the third successive year. It aims to cement its position as one of the
world’s leading global investment banks through additional investment
in expanding client business, modernising infrastructure and strengthen-
ing e-commerce activities.
Credit Suisse First Boston is positioned at the forefront of its industry in harnessing
change for clients and in its own activities – key attributes for success in the ‘new
economy’. Credit Suisse First Boston’s strategy since 1997 has been to strengthen its
global special bracket position through targeted growth of client business and consolida-
tion of the more capital-intensive Fixed Income & Derivatives businesses in which the
firm remains a market leader. This emphasis was accentuated following the losses in
1998. In 1999, further progress was made in moderating value at risk and balance sheet
utilisation. The new ‘Strategic Risk Management’ function made a strong contribution,
especially to improving the quality of risk assessment and focusing on risk concentrations.
Credit Suisse First Boston has come through a demanding period with excellent earn-
ings recovery, underpinned by market share advances and further investment in the
future. Stable staff numbers, strategic direction and investment have supported this
achievement.
CSFB has been distributing fixed income securities electronically since 1993.
During 1999 significant effort was expended on ‘e-nabling’ numerous aspects of our
interaction with securities clients. Through our affiliation with TradeWeb (which was
founded by CSFB), and our proprietary PrimeTrade offering, clients can purchase US
government bonds, commercial paper, repurchase agreements, deposits, new issue
debt offerings, FX and futures electronically. Indications of interest for equity IPOs can
be submitted via the web at ‘IPOs@CSFB’ while clients may execute orders through
CSFB’s alliances with e*offering and TD Waterhouse.
RATIOS/KEY PERFORMANCE INDICATORS
1999 1998
Average allocated equity capital
CHF m 9,925 10,176
Allocated equity capital
CHF m (1 January 2000/1999) 10,494 9,340
BIS tier 1 ratio* 9.9% 8.4%
Cost/income ratio 76.7% 82.5%
– excl. amortisation of goodwill 76.3% 82.4%
Return on average equity capital 19.0% –2%
Number of employees at 31 Dec. 15,185 14,126
Pre-tax margin 17.9% 0.5%
Personnel expenses/total expenses 74.7% 69.8%
Personnel expenses/total income 55.0% 55.5%
* applies to the Credit Suisse First Boston bank
24

27. Significant enhancements will be implemented this coming year in the web-based distri-
bution of equity and fixed income research (‘Research_View’). CSFB has created a
dedicated investment pool to invest in new business models that might impact our institu-
tional businesses, with six investments having been made to date, including Redibook
(US), Tradepoint (UK) and Brokertec (US & UK).
1999 results Overall, conditions on the financial markets were good, although they
deteriorated in the second half for most fixed income segments. Strong revenue growth
(45% on a USD basis) reflects market share gains in most areas, as well as a recovery
in Fixed Income & Derivatives versus 1998. The firm’s quality of earnings improved,
with revenue diversification in favour of Equities and Investment Banking and the client
segments of Fixed Income & Derivatives businesses. Precautionary credit and related
reserves increased in view of a cautious medium-term outlook. The firm’s business mix
moved to greater client orientation, reflecting a less capital-intensive, more people-
intensive strategy. Consequently, average allocated equity for 1999 declined 6% com-
pared to 1998 in USD terms, whilst a strong 9.9%* BIS tier 1 ratio (legal entity) was
maintained. The pre-tax margin reflects this mix change, with employee numbers up
* applies to the Credit Suisse First Boston bank
INCOME STATEMENT 1999 1998 Change 1999 1998 Change
in CHF m in CHF m in % in USD m in USD m in %
Fixed Income & Derivatives 6,290 3,699 70 4,221 2,586 63
Equity 4,786 2,366 102 3,212 1,655 94
Investment Banking 3,262 2,561 27 2,189 1,791 22
Private Equity 191 745 –74 129 521 –75
Other 3 229 – 99 2 160 – 99
14,532 9,600 51 9,753 6,713 45
REVENUE
Personnel expenses 7,999 5,332 50 5,368 3,728 44
Other operating expenses 2,714 2,307 18 1,822 1,613 13
10,713 7,639 40 7,190 5,341 35
TOTAL OPERATING EXPENSES
3,819 1,961 95 2,563 1,372 87
GROSS OPERATING PROFIT
Depreciation and write-offs on non-current assets 439 279 57 295 195 51
– of which amortisation of goodwill 62 11 464 42 8 425
Valuation adjustments, provisions and losses** 786 1,566 – 50 527 1,095 – 52
2,594 116 – 1,741 82 –
PROFIT BEFORE EXTRAORDINARY ITEMS AND TAXES
Extraordinary income 0 15 –100 0 11 –100
Extraordinary expenses 0 81 –100 0 57 –100
Taxes 713 221 223 479 155 209
1,881 –171 n/a 1,262 –119 n/a
NET PROFIT/LOSS
– of which minority interests 1 50 n/a 0 35 n/a
1,880 –221 n/a 1,262 –154 n/a
NET PROFIT/LOSS (after minority interests)
0 306 0 214
** net of allocation(-)/release(+) of reserves for general banking risks
The business unit income statement differs from the Group’s legal accounts in presenting brokerage, execution and clearing expenses as part of operating expenses in
common with US competitors, rather than netted against revenues.
25

28. 7.5% over the last twelve months. Operating expenses (excluding compensation) rose
13%, owing to the headcount increase, Y2K costs and other infrastructure expenditure.
Total compensation expenses rose as a result of revenue increases, business mix and
competitor remuneration.
In geographic terms, Credit Suisse First Boston’s unique balance was again
reflected by revenues split 42% North America, 35% Europe and 23% the rest of the
world. The individual divisions performed as follows (percentages reflect dollar figures):
Revenues increased 94%, with ROE significantly exceeding 30% despite
Equity
continued investment in people for further growth. For the first time Equities’ net profit
exceeded that of FID. The ‘cash’ businesses boosted revenues by over 100% from the
previous year’s level, while derivatives and other equity businesses also saw strong
gains. Growth came from all geographic regions. Excellent gains in primary and sec-
ondary market shares and in research rankings around the world underpin this success.
The positive impact of Credit Suisse First Boston’s leading position in technology indus-
try activities particularly benefited Equities (and Investment Banking).
Fixed Income & Derivatives (FID) Despite market conditions that deteriorated
during the year, FID recovered well from 1998’s difficulties with revenues up 63%.
Management successfully tackled the challenges of integrating Credit Suisse Financial
Products (following the repurchase of the 20% minority stake from Swiss Re in April
1999) and restructuring the division to accommodate tighter risk disciplines and capital
profitability. Despite more challenging market conditions in the second half, reduced
profit potential following risk reduction and real estate losses, a 16% ROE was
achieved. The merged activities in Credit Products enjoyed excellent growth and
Emerging Markets’ results were strong. An outstanding performance in Latin America
offset the Russian gap and complemented good results from other regions.
A recovery in Distressed Securities’ performance compensated for declines in For-
eign Exchange and Money Markets. Real Estate products registered losses, reflecting a
reduction in risk concentration and increased precautionary provisioning levels. Credit
Suisse First Boston’s debt capital markets underwriting position strengthened further to
number four in the global rankings.
Revenues increased 22% despite further reductions in
Investment Banking (IBD)
net interest income owing to a smaller loan book. Capital employed in lending has
been reduced by 66% since 1997 and has now reached the target range of below
USD 1 bn. Underlying growth is excellent, with M&A and capital markets’ gross revenues
up 42% on 1998. Credit Suisse First Boston has expanded its client coverage capacity
in IBD substantially during the last 24 months. While this heavy investment implies an
initial drag on profits, the resultant market share gains, complementing those of Equities,
enhance Credit Suisse First Boston’s prospects for growth and diversified earnings.
26

29. Private Equity The investment of Credit Suisse First Boston’s globally managed pri-
vate equity funds, totalling USD 3.6 bn, is now accelerating. The current level of
revenues reflects limited harvesting of previous investments. The organisation was
strengthened further, mainly in Europe.
BALANCE SHEET 31 Dec. 1999 31 Dec. 1998 * Change
in CHF m in CHF m in %
Cash 1,161 1,175 –1
Money market paper 22,893 18,860 21
Due from banks 169,030 138,726 22
– of which securities lending and reverse repurchase agreements 134,406 78,303 72
Due from other business units 2,478 1,894 31
Due from customers 54,132 61,522 –12
– of which securities lending and reverse repurchase agreements 23,783 28,634 –17
Mortgages 7,352 7,178 2
Securities and precious metals trading portfolio 122,837 100,963 22
Financial investments 6,354 10,072 – 37
Participations 1,023 436 135
Tangible fixed assets 2,515 1,947 29
Goodwill 1,128 535 111
Accrued income and prepaid expenses 5,823 6,845 –15
Other assets 43,055 49,555 –13
– of which replacement value of derivatives 39,413 46,347 –15
439,781 399,708 10
TOTAL ASSETS
in USD m 275,224 290,696 –5
TOTAL ASSETS
Money market liabilities 30,118 19,923 51
Due to banks 222,802 185,335 20
– of which securities borrowing and repurchase agreements 67,150 74,915 –10
Due to other business units 9,536 16,350 – 42
Due to customers, in savings and investment deposits 110 180 – 39
Due to customers, other 69,550 71,157 –2
– of which securities borrowing and repurchase agreements 31,357 22,714 38
Bonds and mortgage-backed bonds 34,478 33,464 3
Accrued expenses and deferred income 10,410 8,844 18
Other liabilities 47,956 53,007 –10
– of which replacement value of derivatives 40,644 49,481 –18
Valuation adjustments and provisions 2,366 1,638 44
Capital 12,455 9,810 27
439,781 399,708 10
TOTAL LIABILITIES
in USD m 275,224 290,696 –5
TOTAL LIABILITIES
* On the basis of the changes to the accounting principles, the accounting for securities lending and borrowing transactions
was changed in 1999. Using the revised accounting rules, the 1998 balance sheet total would have been reduced by
CHF 9.8 bn.
27