credit-suisse Annual Report Part 5 Consolidated financial statements Comments to the financial statements Financial statements Notes to the financial statements Report of the Group's

ANNUAL REPORT 2000/2001 PART V

CONSOLIDATED FINANCIAL STATEMENTS

PART I

2 Financial highlights 2000

4 To our shareholders

PART II

6 An overview of Credit Suisse Group6 Organisation8 Financial review

11 Strategic review

PART III

13 Review of business units 16 Credit Suisse Financial Services23 Credit Suisse Private Banking25 Credit Suisse Asset Management 27 Credit Suisse First Boston

PART IV

30 Credit Suisse Group Risk Management

PART V

50 Consolidated financial statements

PART VI

107 Parent company financial statements

118 Five-year summary of selected financial data

120 Management

126 Main offices

127 Information for investors

50


Page

Comments to the financial statements 52

Financial statements 54

Consolidated income statement 54Consolidated balance sheet 55Consolidated statement of source and application of funds 56Consolidated off-balance sheet business 57

Notes to the consolidated financial statements 59

1 Summary of significant accounting policies 592 Changes to accounting policies 663 Business combinations 704 Subsequent events 70

Income statement5 Split of income statement into the banking and insurance business 716 Income statement by origin 727 Analysis of extraordinary income 728 Analysis of extraordinary expenses 729 Income statement of the banking business 73

10 Analysis of net interest income 7411 Analysis of net trading income 7412 Analysis of valuation adjustments, provisions and losses from the banking business 7413 Income statement of the insurance business 7514 Analysis of insurance premiums by region 7615 Analysis of net investment income from the insurance business 77

Balance sheet: Assets16 Money market papers 7817 Due from customers from lease financing 7818 Loans (due from customers, mortgages) by economic sector 7819 Analysis of loan collateral 7920 Securities and precious metals trading portfolios 7921 Own shares included in securities trading portfolios 8022 Financial investments from the banking business 8023 Investments from the insurance business 8124 Own shares included in financial investments from the banking 82

and insurance business

Page

25 Non-consolidated participations 8226 Analysis of capital assets 8227 Additional information on fixed assets 8228 Analysis of other assets 8229 Analysis of assets by country and country groups 8330 Assets pledged or assigned and assets subject to ownership reservation 83

Balance sheet: Liabilities and shareholders’ equity31 Liabilities for own pension funds 8332 List of bonds issued 8433 Analysis of other liabilities 9234 Valuation adjustments and provisions/reserve for general banking risks 9235 Technical provisions for the insurance business 9336 Statement of shareholders’ equity 94

Other information37 Loans to members of the bank’s governing bodies 9438 Maturity structure of current assets, financial investments and borrowed funds 9539 Securities lending and borrowing and repurchase agreements 9540 Balance sheet by origin 9641 Balance sheet by currencies 9742 List of principal participations 9843 Foreign currency translation rates 10344 Employee equity participation plans 104

Report of the Group’s auditors 106

www.credit-suisse.com 51

52


Credit Suisse Group’s Annual Report contains the consolidated financial state-ments of Credit Suisse Group for the financial year ended 31 December 2000and the annual financial statements of Credit Suisse Group parent company forthe financial year ended 31 March 2001. Both financial statements have beenexamined by independent auditors. Their reports are presented on pages 106and 115.

The consolidated financial statements include Credit Suisse First Boston,Credit Suisse, Winterthur, the private banks, Neue Aargauer Bank, and thefinancial subsidiaries of Credit Suisse Group in Guernsey.

The Group’s financial statements are prepared in accordance with theaccounting rules of the Implementing Ordinance of the Swiss Federal Law onBanks and Savings Banks, the Federal Banking Commission guidelines and theprovisions of the Swiss Accounting and Reporting Recommendations withrespect to insurance companies. Significant information about insurance opera-tions is shown separately in the balance sheet and income statement.

The financial year 2000 Within the framework of the Swiss Accounting and Reporting Recommendations,Credit Suisse Group has changed its accounting policies in the year 2000 inorder to increase the transparency for its insurance business and to align with amore internationally-recognised standard. The Group’s financial statements asof 31 December 1999 have also been restated to conform with the current year’spresentation. In the tables of this publication, 1999 results will be shown in“previously reported” as well as in “new basis” columns.

In August 2000 Credit Suisse Group announced the acquisition of Donaldson,Lufkin & Jenrette, Inc. (DLJ). DLJ was merged into and became a wholly-ownedsubsidiary of Credit Suisse First Boston (USA), Inc., an indirect wholly-ownedsubsidiary of Credit Suisse Group. The results of DLJ operations commencing3 November 2000 have been included in the consolidated financial statements.

In April 2000, Winterthur Life & Pensions completed its acquisition of NicosLife. The acquisition is reflected in the consolidated financial statements as of 1April 2000. Subsequent to the acquisition, Nicos Life changed its name to CSLife Japan.

In April 2000, Winterthur Insurance completed its acquisition of NationalInsurance and Guarantee Corporation Plc (NIG), London. The results of opera-tions of NIG are reflected in the consolidated financial statements commencing 1 April 2000.

Comments to financial statements

In July 2000, Winterthur Life & Pension completed its acquisition of ColonialUK, the British subsidiary of the Australian Colonial Group. The results of opera-tions of Colonial UK commencing 1 July 2000 are included in the consolidatedfinancial statements.

For the acquisition of Donaldson, Lufkin & Jenrette, a restructuring provisionof CHF 1,499 m before tax (CHF 1,074 m after tax) was included in 2000, ofwhich CHF 645 m were used in the same year. The resulting end balance isCHF 854 m.

Provisions for technology and restructuring costs for the Focus project andBZW declined by CHF 130 m, from CHF 169 m at the beginning of the year toCHF 39 m at the end.

Subsequent eventsCredit Suisse Private Banking announced the acquisition of the UK investmentmanager JO Hambro Investment Management Limited. JO Hambro will beconsolidated in the accounts when regulatory approval is obtained.

In December 2000, Winterthur Life & Pension announced the acquisition ofthe largest Czech pension fund, VOPF (Vojensky Otevreny Penzijni Fond).

In February 2001, Winterthur Insurance announced the sale of its largemultinational corporates insurance business Winterthur International to theBermuda-based financial services group XL Capital Ltd. The transaction isexpected to close in the first half of 2001.



Income statementInterest and discount incomeInterest and dividend income from trading portfoliosInterest and dividend income from financial investmentsInterest expenses

Net interest income

Commission income from lending activitiesCommissions from securities and investment transactionsCommissions from other servicesCommission expenses

Net commission and service fee income

Net trading income

Premiums earned, netClaims incurred and actuarial provisionsCommission expenses, netInvestment income from the insurance business

Net income from the insurance business

Income from the sale of financial investmentsIncome from investment activities– of which from participations valued according to the equity method– of which from other non-consolidated participationsReal estate incomeSundry ordinary incomeSundry ordinary expenses

Other ordinary income/(expenses), net

Operating income

Personnel expensesOther operating expenses

Operating expenses

Gross operating profit

Depreciation and write-offs of non-current assetsAmortisation of goodwillValuation adjustments, provisions and losses

from the banking business

Depreciation, valuation adjustments, losses

Profit before extraordinary items, taxes and minority interests

Extraordinary incomeExtraordinary expensesTaxes

Net profit before minority interests

Minority interests

Net profit

1) Interest income and expenses have each been restated by CHF 2,242 m to be consistent with the current year’s presentation.2) CHF 185 m have been reclassified from interest and dividend income from financial investments to interest and discount income to be consistent with the current year.

Change tonew basis

in %

1) 2) 5642

2) 50) 1) 69

0

215370

) 31

53

34

10) 7) 21

28

48

10314115550

483117

) 52

(224

40

3727

34

54

54124

(18

15

73

13) –) 58

39

) 249

36

Change topreviously

reportedin %

56425068

1

21527030

53

34

97

(24

22

10375

109(383247780

) 232

34

3727

34

32

61128

) (18

17

38

13–

17

13

101

11

)

)

)

Previouslyreported

1999in CHF m

19,3804,127

471) (18,726

5,252

59410,523

393) (640

10,870

6,578

26,203) (27,120) (2,157

8,134

5,060

505124952933

703) (1,255

) 110

27,870

13,5095,229

18,738

9,132

937108

1,540

2,585

6,547

93) (152) (1,149

5,339

) (118

5,221

New basis1999

in CHF m

19,3804,127

471) (18,640

5,338

59410,504

393) (635

10,856

6,578

26,146) (26,893) (1,743

6,656

4,166

50590781224

574) (1,487

(294

26,644

13,5545,227

18,781

7,863

981110

1,540

2,631

5,232

93) (152) (855

4,318

) (68

4,250

2000in CHF m

30,1815,865

706(31,439

5,313

71716,039

669(829

16,596

8,791

28,690(28,900(2,1138,489

6,166

1,02321719918

1401,243

(2,258

365

37,231

18,5036,645

25,148

12,083

1,510246

1,265

3,021

9,062

105(1,796(1,349

6,022

(237

5,785

Notes

10

10

10

10

5, 6

5, 6

5, 6, 11

5, 6, 13, 14

5, 6

5, 6

5, 6

5

5

5, 12

5, 7

5, 8

5

5

54

Balance sheetAssetsCash and other liquid assets Money market papersDue from banksReceivables from the insurance businessDue from customers MortgagesSecurities and precious metals trading portfoliosFinancial investments from the banking businessInvestments from the insurance businessNon-consolidated participationsTangible fixed assetsIntangible assetsAccrued income and prepaid expensesOther assets

Total assets

Total subordinated assetsTotal receivables due from non-consolidated participations

Liabilities and shareholders’ equityMoney market papers issuedDue to banksPayables from the insurance businessDue to customers in savings and investment depositsDue to customers, otherMedium-term notes (cash bonds)Bonds and mortgage-backed bonds Accrued expenses and deferred income Other liabilitiesValuation adjustments and provisionsTechnical provisions for the insurance business

Total liabilities

Reserve for general banking risksShare capital Capital reserveRevaluation reserves for the insurance businessReserve for own sharesRetained earnings Minority interestsNet profit

Total shareholders’ equity

Total liabilities and shareholders’ equity

Total subordinated liabilitiesTotal liabilities due to non-consolidated participations

Notes

38

16, 38

38

38

18, 19, 38

18, 19, 38

20, 21, 38

22, 24, 38

23, 24

25, 26

26, 27

26

28

29, 40, 41

38

38

38

38

38

38

32, 38

33

34

35

34, 36

36

36

36

36

36

36

36

40, 41

Change topreviously

reportedin %

) (74

4853387

5736130

456798123

37

172) (17

58141

) (1117

) (17378810

) 5323

37

91070

) (310

1844711

27

37

204

Change tonew basis

in %

(74

483838195736132

10392386

35

172(17

58139

(1117

(17408713(816

35

91070

(130–

12336

42

35

224

Previouslyreported

31 Dec. 1999in CHF m

3,14128,994

164,9016,457

104,93186,553

126,74618,828

117,2221,8236,8282,9909,023

44,309

722,746

1,792928

22,120198,324

6,26844,007

182,2493,885

47,90514,91652,5778,566

107,561

688,378

2,1315,444

11,6966,977

600) 552

1,7475,221

34,368

722,746

18,194749

)

)

)

)

)

New basis31 Dec. 1999

in CHF m

3,14128,994

164,8837,152

104,93177,763

126,74618,828

117,7711,7899,0114,737

11,81451,462

729,022

1,792928

22,120198,843

6,35544,007

182,0823,884

46,66914,95251,22714,219

113,981

698,339

2,1315,444

11,7005,515

600(111

1,1544,250

30,683

729,022

17,898749


2,92830,127

243,6929,871

145,25792,432

198,91725,574

132,6321,8299,913

23,29916,29454,668

987,433

4,876771

23,176359,441

8,80739,233

213,5493,225

65,52428,02157,65313,107

132,175

943,911

2,3196,009

19,8824,789

6001,5672,5715,785

43,522

987,433

21,801779



Statement of source andapplication of fundsFrom operations,

equity transactions and investments

Operating activitiesNet profit before minority interestsProvisions for credit and other risksLossesProvisions for taxesDepreciation and write-offsExtraordinary incomeExtraordinary expensesParticipations valued according

to the equity methodAccrued income and prepaid expensesAccrued expenses and deferred income

Equity transactionsShare capitalCapital surplus and retained earningsDividends paidForeign exchange impactMinority interests

Investments in long-term assetsInvestments in companiesReal estateOther tangible fixed and intangible assets

Financial investments, provisions, other assets and liabilitiesInvestments from the banking businessInvestments from the insurance businessValuation adjustments and provisionsTechnical provisions for the insurance business 1)

Other assets Other liabilities

From other balance sheet items

AssetsMoney market papersDue from banksReceivables from the insurance businessDue from customersMortgages

LiabilitiesMoney market papers issuedDue to banksPayables from the insurance businessDue to customers in savings and investment depositsDue to customers, otherBonds and medium-term notes

Change in liquid assets

Securities and precious metals trading portfoliosCash and other liquid assets

1) In line with insurance practice, the change in the technical provisions is shown as a total amount under changes in provisions affecting the cash flow.

New basis1999

Netin/(out) flow

in CHF m

9,026

10,981

(274

(5,315

3,634

16,018

(34,418

50,436

25,044

)

)

)

Applicationin CHF m

32

78

1,430

449

463267

4,585

1,3617,575

591

5,124

2,40124,647

2,3236,089

2,1092,611

244

24,231813

Sourcein CHF m

4,3181,423

78855

1,091

101

6732,552

62225

1,318

)

)

11,2137,072

)

1,042

7,38544,494

3,521

2000Net

in/(out) flowin CHF m

1,669

20,577

6,634

(21,060

(4,482

70,289

(138,706

208,995

71,958

Applicationin CHF m

10

1994,480

1,986703

21,391

6,74614,8613,941

3,554

1,13378,7562,719

40,40215,696

4,774

72,171

Sourcein CHF m

6,0222,736

1441,3491,756

190

13,069

5657,478

1,280

145186

18,194

6,426

1,056160,598

2,452

31,46718,196

213

Notes

12

26

7

8

36

36

20

56

Off-balance sheet business

Contingent liabilitiesCredit guarantees in form of avals, guarantees

and indemnity liabilities Bid bonds, delivery and performance bonds,

letters of indemnity, other performance-related guarantees Irrevocable commitments in respect of documentary credits Other contingent liabilities

Total contingent liabilities

Irrevocable commitments

Liabilities for calls on shares and other equity instruments

Confirmed credits

Fiduciary transactions

Analysis of collateral as of 31 December 2000

Contingent liabilitiesCredit guarantees in form of avals, guarantees

and indemnity liabilities Bid bonds, delivery and performance bonds,

letters of indemnity, other performance-related guarantees Irrevocable commitments in respect of documentary creditsOther contingent liabilities

Total contingent liabilities

As of 31 December 1999

Irrevocable commitments


Liabilities for calls on shares and other equity instruments


Confirmed credits


Changein %

4

) (8) (3

30

5

5

510

) (34

12

Totalin CHF m

7,013

4,8243,1425,026

20,005

19,111

126,998

120,560

305

50

150

226

))

)

Changein CHF m

258

(438(82

1,156

894

6,438

255

(76

4,603

Withoutcollateral

in CHF m

2,370

2,7621,8123,659

10,603

8,881

43,734

61,377

305

50

136

225


6,755

5,2623,2243,870

19,111

120,560

50

226

37,371

Othercollateral

in CHF m

4,607

1,9261,3301,260

9,123

9,878

76,169

56,553

0

0

14

1


7,013

4,8243,1425,026

20,005

126,998

305

150

41,974

Mortgagecollateral

in CHF m

36

1360

107

279

352

7,095

2,630

0

0

0

0



Off-balance sheet businessDerivative instruments

Interest rate productsForward rate agreements Swaps Options bought and sold (OTC) Forwards FuturesOptions bought and sold (traded)

Total interest rate products

Foreign exchange productsForwards 1)

Swaps 2)

Options bought and sold (OTC)FuturesOptions bought and sold (traded)

Total foreign exchange products

Precious metals productsForwards 1)

Options bought and sold (OTC)FuturesOptions bought and sold (traded)

Total precious metals products

Equity/index-related productsForwardsOptions bought and sold (OTC)FuturesOptions bought and sold (traded)

Total equity/index-related products

Other productsForwardsOptions bought and sold (OTC)FuturesOptions bought and sold (traded)

Total other products

Total derivative instruments

Total replacement valuesaccording to the balance sheet

1) Including outstanding spot transactions.2) Cross-currency interest rate swaps.3) Positive replacement value after deduction of CHF 0.1 bn (1999: CHF 1.4 bn) of assets pledged as security.4) No replacement values are shown for traded derivatives (futures and traded options) subject to daily margining requirements. Total positive and negative replacement

values on traded derivatives amount to CHF 2.1 bn (1999: CHF 1.4 bn) and CHF 1.5 bn (1999: CHF 1.1 bn), respectively.5) Of which from the insurance business: positive replacement values CHF 0.1 bn (1999: CHF 0.2 bn), negative replacement values CHF 0.2 bn (1999: CHF 0.3 bn).

New basis31 Dec. 1999Negative gross

replacementvalue

in CHF bn

0.350.09.10.5

––

59.9

9.414.93.7

––

28.0

1.20.7

––

1.9

2.921.2

––

24.1

0.40.3

––

0.7

114.6

3) 5) 40.3 5)


Nominal4) value

in CHF bn

305.33,353.71,185.5

45.3542.5349.2

5,781.5

521.0267.1280.6

0.50.1

1,069.3

17.511.20.10.0

28.8

27.0294.335.781.8

438.8

8.78.77.80.1

25.3

7,343.7

5)

New basis31 Dec. 1999Positive gross

replacementvalue

in CHF bn

0.352.78.60.5

––

62.1

10.510.93.9

––

25.3

1.50.6

––

2.1

2.520.1

––

22.6

0.50.3

––

0.8

112.9

37.2

31 Dec. 2000Negative gross

replacement4) value

in CHF bn

0.154.410.71.1

––

66.3

12.216.13.8

––

32.1

0.71.3

––

2.0

2.615.5

––

18.1

2.70.6

––

3.3

121.8

3) 5) 48.8

31 Dec. 2000Positive gross

replacementvalue

in CHF bn

0.155.010.21.1

––

66.4

11.515.13.8

––

30.4

0.80.7

––

1.5

1.913.3

––

15.2

2.10.6

––

2.7

116.2

43.0

31 Dec. 2000Nominal

valuein CHF bn

109.03,674.8

886.9268.8466.9386.9

5,793.3

558.0305.9273.4

1.70.4

1,139.4

18.516.10.10.1

34.8

22.6265.844.6

140.9

473.9

69.86.42.41.8

80.4

7,521.8

58

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 Summary of significant accounting policies

Basis for accounting The Credit Suisse Group’s consolidated financial statements are prepared inaccordance with the accounting rules of the Implementing Ordinance of theSwiss Federal Law on Banks and Savings Banks, the Federal BankingCommission guidelines and the provisions of the Swiss Accounting and ReportingRecommendations with respect to insurance companies. The consolidation andvaluation policies of the Group reflect the accounting principles set out in theSwiss stock exchange listing regulations. The financial year for the Group endson 31 December. In preparing the consolidated financial statements, manage-ment is required to make best estimates and assumptions that affect thereported amounts of assets and liabilities, and disclosure of contingent assetsand liabilities at the date of the consolidated financial statements and thereported amounts of revenues and expenses during the reporting period.

Consolidation The consolidated financial statements include the accounts of Credit SuisseGroup and its subsidiaries. The Group consolidates subsidiaries in which it holds,directly or indirectly, more than 50% of the voting rights of an entity or where ithas the ability to exercise control over an entity. The effects of intra-group trans-actions are eliminated in preparing the consolidated financial statements. Minorityinterests in shareholders’ equity and net profit are disclosed separately.

The Group accounts for participations in which it owns 20% to 50% of thevoting rights and/or has the ability to exercise significant influence using theequity method of accounting. The Group’s profit or loss share is included inOther ordinary income. Certain majority owned participations which operate out-side of the Group’s core business are accounted for according to the equitymethod.

Foreign currency translation For the purpose of consolidation, the balance sheets of foreign Group companiesare translated into Swiss francs using the year-end exchange rate, and theirincome statements are translated using the average exchange rate prevailingthroughout the year (see Note 43). Translation adjustments arising on consolida-tion are recorded directly in shareholders’ equity.

In the annual accounts of the individual Group companies, assets, liabilitiesand off-balance sheet items denominated in foreign currencies are translated intothe relevant reporting currency using the year-end exchange rate. Income andexpense items denominated in foreign currencies are translated into the reportingcurrency using the exchange rate as of the transaction date. Resulting exchangedifferences are included in the consolidated income statement, except for differ-ences relating to debt and equity securities held for investment by the insuranceentities which are recorded in shareholders’ equity.

Offsetting In the insurance business, assets and liabilities are offset when the Group has alegal right to offset amounts with the same counterparty and transactions areexpected to be settled on a net basis. In the banking units, assets and liabilitiesare offset when the following conditions are cumulatively met. Receivables andpayables arise from transactions of similar nature, with the same counterparty,with the same or earlier maturity and in the same currency and which cannot


60


lead to a counterparty risk. Positive and negative replacement values are offsetwith the same counterparty in so far as bilateral agreements exist that are recog-nised and enforceable by law.

Trade date/settlement date accounting Foreign exchange, money market and precious metals transactions are recordedon settlement (value) date. Prior to the value date, foreign exchange and preciousmetals transactions are recorded as off-balance sheet business and reported withtheir replacement values. Proprietary securities transactions and customer securi-ties transactions are generally recorded on a trade date basis.

Cash, due from banks and money market papers Cash and due from banks are accounted for at nominal value. Money marketinstruments held for trading are carried at fair value. Money market instrumentsnot held for trading or for sale are recorded net of unamortised premiums/discounts. The necessary provisions for recognisable risks and potential lossesare normally deducted from the appropriate asset items in the balance sheet.

Due from customers and mortgages (loans) Loans are initially recorded at nominal value. Loans held-to-maturity are recordednet of unamortised premiums/discounts. Loans held for sale are recorded atlower of cost or market value. Interest income is accrued as earned.

Loans are carried at nominal value net of any provisions for impairment. TheGroup provides for credit losses based on regular and detailed analysis on eachloan in the portfolio considering collateral and counterparty risk. If uncertaintyexists as to the repayment of either principal or interest, a provision is either pro-vided or adjusted accordingly. Charge-off of a loan occurs when the Group iscertain that there is no possibility to recover the principal.

The Group considers a loan impaired when it believes it will be unable to col-lect all principal and/or interest in accordance with the contractual terms of theloan agreement. A loan is classified as non-performing when the contractual pay-ments of principal and/or interest are in arrears for 90 days or more. Interestcollected on non-performing loans is accounted for using the cash basis, cost re-covery method or a combination of both, as appropriate. Generally, an impairedloan may be restored to performing status when all delinquent principal andinterest are brought current in accordance with the terms of the loan agreementand certain performance criteria are met.

Securities and precious metals trading portfolios Debt and equity securities and precious metals held in the trading portfolio arecarried at fair value.

Fair value is determined using quoted market prices, where a price-efficientand liquid market exists. In the absence of such a market, the fair value is estab-lished on the basis of a valuation model. Unrealised and realised gains and losseson these positions are recognised in Net trading income. Interest and dividendincome from the trading portfolio is recorded in Net interest income. Where fairvalues cannot be determined, the positions are reported at lower of cost or mar-ket value or estimated net realisable value.

Financial investments from the banking business This position includes securities, private equity investments, real estate held forsale as well as debt securities held until maturity. Companies acquired and heldfor subsequent disposal are also included in Financial investments.

Debt and equity securities and real estate held for sale are valued at lower ofcost or market. Unrealised losses are recorded in the income statement whenthe market value is lower than the cost. When the market value increases, un-realised gains are recorded only to the extent losses were previously recognised.Losses due to impairment in creditworthiness are recorded in Valuation adjust-ments, provision and losses.

Debt securities held-to-maturity are carried at amortised cost (accrual method).Premiums and discounts are accrued or deferred over the term of the instrumentuntil final maturity. Realised profits or losses which are interest-related and whicharise from the early disposal or redemption of the instrument are accrued ordeferred over the remaining term of the instrument sold. Other than temporaryimpairment is recorded in Valuation adjustments, provisions and losses.

Derivative instruments – banking business Positive and negative replacement values of all derivative instruments are report-ed in Other assets and Other liabilities, respectively.

Trading derivative instruments are carried at fair value as positive and negativereplacement values. The replacement values are presented net by counterpartyfor transactions in those products where the Group has a legal right to set off;otherwise the replacement values are presented gross by contract. Realised andunrealised gains and losses are included in Net trading income. The majority ofthe Group’s derivative positions are trading related.

The Group uses derivatives to manage interest rate, foreign currency, equitymarket, and credit risks. Gains and losses on hedging derivative instruments arerecognised in income on the same basis as the underlying exposure. Strategicpositions are valued at lower of cost or market. Derivative instruments usedfor interest rate risk management are valued according to the accrual method.The interest component is accrued or deferred over the term of the instrumentaccording to the annuity method. Realised profits or losses which are interest-related and which arise from the early disposal or redemption of the instrumentare also accrued or deferred over the remaining term of the instrument.

Gains and losses related to qualifying hedges of firm commitments and prob-able anticipated transactions are deferred and recognised in income or as adjust-ments to carrying amounts when the hedged transactions occur.

Investments from the insurance business Debt and equity securities held for investment are carried at fair value. Unrealisedgains and losses including foreign exchange gains and losses are recorded asa separate component of shareholders’ equity, net of deferred taxes. Realisedgains and losses on securities are determined using the specific identificationmethod. Realised gains and losses, the amortisation of premiums and discountsrelating to debt securities and write-offs due to other than temporary impairmentare included in Investment income from the insurance business.

Certain debt and equity securities are held as trading and carried at fair value.Gains and losses from the valuation of the trading portfolio and realised gainsand losses on these positions are included in Investment income from the insur-ance business. Debt securities held-to-maturity are carried at amortised cost.


62


Non-marketable securities are valued at cost. Other than temporary impairmentis recorded in Investment income from the insurance business.

Real estate held for investment, including capital improvements, is carried atcost less accumulated depreciation over its estimated useful life, generally 40 to67 years. No depreciation is charged on land. Valuation adjustments are record-ed for any impairment. Depreciation and write-downs are included in Investmentincome from the insurance business.

Investments for the benefit of life insurance policyholders who bear theinvestment risk are carried at fair value.

Loans, mortgages and short-term investments are accounted for at nominalvalue, net of necessary provisions. The provision for credit losses is determined insubstantially the same way as the banking business. The provision for credit loss-es is recorded in Investment income from the insurance business.

Derivative instruments are generally used to hedge the exposure to changesin the fair value of investments. Hedging transactions are accounted for usingthe same methods as for the underlying transactions they hedge.

Own shares and own bonds The Group buys and sells own shares, own bonds and derivatives on own shareswithin its normal trading and market making activities. In addition the Groupholds own shares to hedge commitments arising from employee compensationschemes. Own shares are either included in the trading portfolio and carried atfair value or held in financial investments and carried at cost. Changes in fairvalue and realised gains and losses on own shares and own bonds included inthe trading portfolio are reported as Net trading income. Interest earned and divi-dends received are reported as interest income. Derivatives on own shares arecarried at fair value and reported as positive and negative replacements values inOther assets and Other liabilities, respectively. Realised and unrealised gains andlosses on derivatives on own shares are recognised in Net trading income.

Tangible fixed assets Real estate held for own use, including capital improvements, is carried at costless depreciation over its estimated useful life, generally 40 to 67 years. Nodepreciation is charged on land. Valuation adjustments are recorded for otherthan temporary impairment. Other tangible fixed assets such as computers,machinery, furnishings, vehicles and other equipment, as well as alterations andimprovements to rented premises, are depreciated using the straight-linemethod over their estimated useful life, generally three to five years.

Intangible assets The Group capitalises certain costs relating to the acquisition and installation ofsoftware. The Group depreciates capitalised software costs on a straight-line basisover the estimated useful life of the software, normally not exceeding three years.

Identifiable intangible assets are generally acquired through business combi-nations and other transfers of assets. Purchased intangible assets are initiallyrecorded at fair value and depreciated over their estimated useful life, not toexceed 20 years. The useful life of intangible assets relating to individuals doesnot exceed five years. Additionally, such assets are regularly evaluated for otherthan temporary impairment.

Goodwill represents the excess of purchase price over the estimated fairvalue of net assets acquired at the acquisition date and is evaluated periodicallyfor other than temporary impairment. The goodwill included in this balance sheet

position arises from acquisitions after 1 January 1997. Prior to 1 January 1997,goodwill was charged to equity. Goodwill is amortised using the straight-linemethod over its estimated useful life, not to exceed 20 years. Goodwill is evalu-ated periodically for other than temporary impairment.

The Present Value of Future Profits (PVFP) is the present value of anticipat-ed profits embedded in the life and health insurance in force at the date each lifeand health insurance portfolio was purchased. Interest accrues on the unamor-tised PVFP based upon the policy liability rate or contract rate. The PVFP assetis amortised over the years that such profits are anticipated to be received in pro-portion to the estimated gross margins or estimated gross profits for participatingtraditional life products and non-traditional life products, respectively, and over thepremium paying period in proportion to premiums for other traditional life products.

Expected future profits used in determining the PVFP are based on actuarialdeterminations of future premium collection, mortality, morbidity, surrenders,operating expenses and yields on assets supporting policy liabilities as well asother factors.

The discount rate used to determine the PVFP is the rate of return requiredto invest in the business being acquired. Additionally, the PVFP asset is adjustedfor the impact on estimated gross margins and profits net of unrealised gains andlosses on securities.

Each year, the PVFP asset is evaluated for recoverability. If the present valueof future net cash flows from the blocks of business acquired is insufficient torecover the PVFP, the difference is charged to expense as an additional write-offof the PVFP.

Deferred policy acquisition costs Deferred policy acquisition costs consist primarily of commissions, underwritingexpense and policy issuance costs and are included in Accrued income and pre-paid expenses. Acquisition costs, which vary with and are directly related to theacquisition of insurance contracts, are deferred to the extent they are deemedrecoverable.

Deferred policy acquisition costs on participating traditional life products areamortised over the expected life of the contracts in proportion to the estimatedgross margins. Deferred policy acquisition costs on other traditional life productsare amortised over the premium paying period of the related policies in proportionto net premiums using assumptions consistent with those used in computing theprovision for future policy benefits. Deferred policy acquisition costs on non-tradi-tional life products are amortised over the expected life of the contracts as a con-stant percentage of the estimated gross profit.

The effect on the amortisation of deferred policy acquisition costs of revisionsto estimated gross margins or profits for all contracts is reflected in the currentperiod income statement. The deferred policy acquisition costs asset related toparticipating traditional life products and non-traditional life products is adjustedfor the impact on estimated gross margins or profits net of unrealised gains andlosses on securities.

Deferred policy acquisition costs for non-life products are amortised over theperiods in which the premiums are earned. Future investment income attributableto related premiums is taken into account in measuring the recoverability of thecarrying value of this asset.


64


Taxes Income tax expense is calculated on the basis of the annual results of the individ-ual financial statements of the Group companies. Deferred tax assets and liabili-ties are recognised for the expected future tax consequences of temporary dif-ferences between the financial statement carrying amounts and the tax bases ofassets and liabilities. Deferred tax assets and liabilities are calculated based onexpected tax rates and are recorded in Other assets and Valuation adjustmentsand provisions, respectively. Deferred income tax expense represents the netchange in the deferred tax asset or liability balance during the year and ischarged to tax expense, except to the extent the change relates to transactionsrecognised directly in shareholders’ equity. This amount together with incometaxes payable or receivable in the current year represents the total income taxexpense for the year. No deferred tax assets are recognised for net operatingloss carry-forwards. Other deferred tax assets are recognised subject to man-agement’s judgment that realisation is more likely than not. No provision is madefor non-recoverable withholding taxes on undistributed profits of Group compa-nies.

Reserve for general banking risks In accordance with Swiss banking regulations, the reserve for general bankingrisks is recorded as a separate component of shareholders’ equity. Changes tothis equity component must be recorded as an extraordinary item in the incomestatement or result from reclassification from valuation adjustments and provi-sions no longer required (disclosed as change in definition of scope).

Repurchase and reverse repurchase agreements (Repos)The Group enters into purchases of securities under agreements to resell as wellas sales of securities under agreements to repurchase substantially identicalsecurities. Such agreements normally do not constitute economic sales and aretherefore treated as financing transactions. Securities sold subject to such agree-ments continue to be recognised in the balance sheet. The proceeds from thesale of these securities are treated as liabilities. Securities purchased under agree-ments to resell are recognised as loans collateralised by securities. Receivablesand liabilities are valued using the accrual method; those held in the trading book(matched book repo trading) are carried at fair value. Transactions in which eco-nomic control over the securities transferred has been relinquished are reported aseither purchases or sales together with a related forward commitment to resell orrepurchase.

Securities lending and borrowing Securities borrowed and lent with cash collateral and daily margining are reportedas repurchase and reverse repurchase transactions. All other securities borrowedand lent that are collateralised by cash are included in the balance sheet atamounts equal to the cash advanced or received. Securities lent or securitiesprovided as collateral for securities borrowed continue to be recognised in thebalance sheet at their carrying value if control over the securities transferred isnot relinquished. Securities borrowed and securities received as collateral forsecurities lent are only recognised in the balance sheet if control over the securi-ties transferred is relinquished. Lending fees earned or incurred are recognisedas interest income and interest expense, respectively.

Pension plans The Group sponsors various retirement benefit plans for its employees worldwide.These plans include both defined benefit and defined contribution plans, aswell as other retirement benefits such as post-retirement life insurance and post-employment medical benefits. Pension expense is recorded in Personnelexpenses and is based on actuarial valuation methods and projected plan liabili-ties for accrued service.

Premium income and related expenses Premiums from traditional life products, both participating and non-participating,are recognised as revenue when due from the policyholder. Profit for contractswith a limited number of premium payments is deferred and recognised over theperiod that services are provided.

Premiums from non-traditional life products are recognised as revenue whendue. For contracts with front-end fees, any excess front-end fees are deferredand recognised in proportion to the estimated gross profits. These deferred feesare adjusted for the impact on estimated gross profits net of unrealised gains andlosses on securities.

Premiums from non-life products are recorded at inception of the contractand are earned primarily on a pro-rata basis over the term of the related policycoverage with the unearned portion deferred in the balance sheet as unearnedpremiums.

Reinsurance Contracts providing for indemnification against loss or liability relating to insurancerisk have been accounted for as reinsurance. Reinsurance contracts that do nottransfer significant insurance risk are accounted for as deposits.

Gains on retroactive reinsurance ceded are deferred and amortised over theestimated remaining settlement period.

Technical provisions for the insurance businessProvision for future policyholder benefits The provision for future policyholder benefits for participating traditional life prod-ucts is computed using the net level premium method, which represents thepresent value of future policy benefits less the present value of future net premi-ums. The method uses assumptions for mortality and interest rates guaranteedin the contracts or used in determining dividends.

The provision for future policyholder benefits for other traditional life productsis computed using the net level premium method. The assumptions are based onthe Group’s experience and industry standards including provision for adversedeviations that were in effect as of the issue date of the contract.

The provision for future policyholder benefits for non-traditional life products isequal to the account value, which represents premiums received and allocatedinvestment return credited to the policy less deductions for mortality costs andexpense charges.

When the provision for future policyholder benefits plus the present value ofexpected future gross premiums for a product are insufficient to provide forexpected future benefits and expenses for the line of business, deferred policyacquisition costs are written off to income and thereafter, if required, a premiumdeficiency reserve is established by a charge to income. A premium deficiencyreserve is adjusted for the impact of net unrealised gains and losses.


66


Provision for death and other benefitsClaim reserves represent amounts due on life and accident and health claims thathave accrued as of the balance sheet date, but have not yet been paid. Thisincludes incurred but not reported claims (IBNR) and claims expense liability. Theinterest rate used to discount future payments is impacted by the net unrealisedgains and losses on securities, resulting in an adjustment to claim reserves.

Provision for future dividends to policyholders Dividends on participating traditional life products are accrued when earned andcalculated in accordance with local statutory or contractual regulations. The provi-sion for policyholder dividends also includes a deferred bonus reserve (DBR),which represents amounts that result from differences between these presentedfinancial statements and the local statutory financial statements and that willreverse and enter into future policyholder dividends calculations. The calculationof the DBR reflects only the contractual or regulatory defined minimum distribu-tion to policyholders.

The provision for policyholder dividends is adjusted for the impact of net un-realised gains and losses on securities to the extent that the policyholder willparticipate in such gains and losses on the basis of contractual or regulatory re-quirements when they are realised.

Provision for unpaid claims and claim adjustment expenses Claim and claim adjustment expenses are recorded as incurred. Claim reservescomprise estimates of the unpaid portion of the reported losses and estimates ofthe amount of losses incurred but not yet reported to the insurer. Managementperiodically reviews the estimates, which may change in light of new information.Any subsequent adjustments are recorded in the period in which they are deter-mined.

Certain claim reserves are discounted for individual claims whose payment pat-tern and ultimate cost are fixed and reliably determinable.

2 Changes to accounting policies

Banking business

Repurchase and reverse repurchase agreements (Repos) Prior to year-end 2000, repo transactions where the cash taker has lost economiccontrol over the collateral provided were also recorded as advances secured bysecurities or as deposits against which the bank’s securities are pledged. The1999 balance sheet amount would not be materially different had they been pre-pared under the new policy.

Securities lending and borrowing (SLBs) Prior to year-end 2000, securities borrowed and lent with collateral and no dailymargining were recorded as inventory movements with corresponding receivablesand payables arising therefrom. Securities borrowed and lent with non-monetarycollateral and daily margining were recorded as a combination of a repurchase andreverse repurchase agreement. The 1999 balance sheet amount would not bematerially different had they been prepared under the new policy. SLB fees earnedor incurred are recognised as interest income and interest expenses, respectively.

Previously reported

– Premiums for contracts were recognised

as written when due from the policyholder.

– Acquisition costs were recorded and deferred

in accordance with local regulations.

– Provision for future policy benefits were based

on the expected liabilities due to the insured

and the claimants. Reserves were calculated

in accordance with supervisory authorities of

the respective countries.

– Provision for death and other benefits were

calculated based on statutory methodology.

A reserve for claims incurred but not reported

was recorded for disability claims only.

– A provision for future dividends to policyhold-

ers as submitted to regulators was accrued,

with additional funds accrued for future policy-

holder dividends as deemed necessary by

management.

New basis

– Premiums for contracts are recognised when

due from the policyholder with any deferred

profit capitalised and recognised over the peri-

od that services are provided.

– All acquisition costs that vary with and are

primarily related to the acquisition of business

are deferred and amortised to expense based

on the product classification of the insurance

contracts.

– The provision for future policy benefit liabilities

is calculated based on the benefits attributable

to the policyholders as set out in the insurance

contracts.

– Provision for death and other benefits are

calculated using the best estimate of future

claims expense liability. In addition, a provision

is established for claims incurred but not

reported for all claims.

– A provision for future dividends to policyholders

on participating traditional life products is

accrued when earned. In addition, a deferred

bonus reserve is established when there is

a contractual or legally defined minimum

distribution to policyholders based on the

regulatory requirements.

Prior to year-end 2000, lending fees were reported as commission income orexpense, respectively. The impact on the 1999 consolidated income statementwould have been CHF 111 million higher had they been prepared under the newpolicy.

Insurance business

Within the framework of the Swiss Accounting and Reporting Recommendations,Credit Suisse Group has changed its accounting policies in the year 2000 inorder to increase the transparency for its insurance business and to align with amore internationally-recognised standard. The Group’s financial statements asof 31 December 1999 have also been restated to conform with the current year’spresentation. In the tables of this publication, 1999 results will be shown in“previously reported” as well as in “new basis” columns.

A summary of previously reported compared to new basis accounting policiesis shown below. The following table shows the effects of the changes to theaccounting policies:

Life


68


New basis

– A PVFP asset is established and represents

the projected future profits from the in-force

acquired policies. The PVFP asset is amor-

tised to match the profits arising from the

acquired in-force business.

– Premiums written, deferred acquisition costs

and technical provisions are treated consis-

tently.

– Technical provisions are carried in all locations

based on best estimate without any equalisa-

tion reserves.

– Reinsurance contracts that do not transfer

significant insurance risk are accounted for as

deposits.

– Real estate held for investment and real estate

held for own use are carried at depreciated

cost. Depreciation and write-downs due to

other than temporary impairment are charged

to the income statement. Real estate held for

investment is included in investments from the

insurance business, and real estate held for

own use is included in tangible fixed assets.

– Debt and equity securities classified as avail-

able for sale are carried at fair value.

Unrealised gains and losses are recorded as a

separate component of shareholders’ equity,

net of taxes.

– Certain securities are classified as trading and

are carried at fair value. Gains and losses

from changes in valuation are recognised as

investment income.

– Unrealised foreign exchange gains and losses

relating to securities denominated in foreign

currencies are recorded as unrealised gains

and losses in shareholders’ equity.

– Realised gains and losses are determined

using the specific identification method.

Previously reported

– A PVFP asset was not recognised as a

separate intangible asset but was included in

goodwill.

– Premiums written, deferred policy acquisition

costs and technical provisions were calculated

in accordance with local supervisory regula-

tions of the respective countries except that

the equalisation reserves legally prescribed

and locally recorded in some countries were

not included in Group accounts.

– All reinsurance contracts were considered

insurance transactions and were accounted

for as insurance.

– Real estate was carried at fair value. Unre-

alised gains were recorded in equity while

unrealised losses were recorded in the

income statement. Both real estate held for

investment and own use were included in

investments.

– Debt securities were carried at amortised

cost. Equity securities were carried at fair

value. Unrealised gains were recorded in

equity while unrealised losses were recorded

in the income statement.

– Unrealised foreign exchange gains and losses

relating to securities denominated in foreign

currencies were recognised in income.

– Realised gains on securities were calculated

using the average method.

Life

Non-life

Investments

’

Previously reported

Life Non-life Investments 1)

GoodwillTaxationMinority interestsOther

New basis

1) Includes foreign exchange impact.

Shareholders’ equity

32,621

(591(631

) (4,258304

1,550593

) (59

29,529

)))

)

Net profit

5,221

) 586) 64) (1,876

1831051

) (124

4,250

Shareholders’ equity

11,194

(591(631

) (4,258304

1,550593

) (28

8,133

Net profit

1,089

58664

(1,87618

31051

(117

125

The following table shows the effects of the changes to the accounting policieson Winterthur’s and the Group’s 1999 net profit and shareholders’ equity afterminority interests as of 31 December 1999.

Winterthur Credit Suisse Group

Previously reported

– Fair values of insurance liabilities assumed in

a purchase business combination were based

on pre-acquisitions carrying values.

– Deferred tax liabilities arising from the uniform

valuation of investments at market value were

calculated at the current tax rate.

– Deferred tax assets were not recognised.

New basis

– Fair values of insurance liabilities assumed in

a purchase business combination are deter-

mined using actuarial assumptions at the date

of acquisition.

– Deferred tax assets and liabilities are recog-

nised for the expected future tax conse-

quences of temporary differences between

the financial statement carrying amounts and

the tax bases of the assets and liabilities and

are calculated based on expected tax rates.

– No deferred tax assets are recognised for net

operating loss carry-forwards. Other deferred

tax assets are recognised subject to manage-

ment’s judgment that realisation is more likely

than not. A valuation allowance is set up if

recoverability of the deferred tax asset is not

likely.

Goodwill

Taxes


70


3 Business combinations

The scope of consolidation has undergone the following material changes:

Banking business

Donaldson, Lufkin & Jenrette, Inc.In August 2000, Credit Suisse Group announced the acquisition of Donaldson,Lufkin & Jenrette, Inc. (DLJ). DLJ was merged into and became a wholly-ownedsubsidiary of Credit Suisse First Boston (USA), Inc., an indirect, wholly-ownedsubsidiary of Credit Suisse Group. The results of operations of DLJ commencing3 November 2000 have been included in the consolidated financial statements.

Insurance business

Nicos LifeIn April 2000, Winterthur Life & Pensions completed its acquisition of Nicos Life.The acquisition is reflected in the consolidated financial statements as of 1 April2000. Subsequent to the acquisition, Nicos Life changed its name to CS LifeJapan.

National Insurance and Guarantee Corporation PlcIn April 2000, Winterthur Insurance completed its acquisition of NationalInsurance and Guarantee Corporation Plc (NIG), London. The results of opera-tions of NIG are reflected in the consolidated financial statements commencing 1 April 2000.

Colonial UKIn July 2000, Winterthur Life & Pensions completed its acquisition of ColonialUK, the British subsidiary of the Australian Colonial Group. The results of opera-tions of Colonial UK commencing 1 July 2000 are included in the consolidatedfinancial statements.

4 Subsequent events

Banking business

JO Hambro Investment Management LimitedCredit Suisse Private Banking announced the acquisition of the UK investmentmanager JO Hambro Investment Management Limited. JO Hambro will be con-solidated in the accounts when regulatory approval is obtained.

Insurance business

Vojensky Otevreny Penzijni Fond (VOPF)In December 2000, Winterthur Life & Pensions announced the acquisition of thelargest Czech pension fund, Vojensky Otevreny Penzijni Fond (VOPF).

Winterthur InternationalIn February 2001, Winterthur Insurance announced the sale of its large multi-national corporates insurance business Winterthur International to the Bermudabased financial services group XL Capital Ltd.

5 Split of income statement into thebanking and insurance business 1)

Net interest income Net commission and service incomeNet trading incomeIncome from the insurance businessOther ordinary income/(expenses), net

Operating income

Salaries and other compensationEmployee benefitsOther personnel expenses

Personnel expenses

Premises and real estate expensesExpenses for IT, machinery, furnishings,

vehicles and other equipmentSundry operating expenses

Other operating expenses

Operating expenses


Depreciation and write-offs on non-current assetsAmortisation of goodwillValuation adjustments, provisions and losses


Profit before extraordinary items,taxes and minority interests



Minority interests

Net profit

1) Income statements for the banking and insurance business are presented on a stand-alone basis.2) Expenses due to the handling of both claims and investments are allocated to the income from the insurance business, of which CHF 525 m (new basis 1999:

CHF 579 m, previously reported 1999: CHF 618 m) are related to personnel expenses and CHF 355 m (new basis 1999: CHF 511 m, previously reported 1999: CHF 487 m) to other operating expenses.

Notes

10

11

12

7

8

2000in CHF m

5,23916,6298,791

01,046

31,705

14,6161,159

724

16,499

811

9853,483

5,279

21,778

9,927

1,249215

1,265

2,729

7,198

105(1,796

(943

4,564

(91

4,473

1999in CHF m

5,25210,8706,578

0577

23,277

10,331908515

11,754

731

8982,397

4,026

15,780

7,497

828101

1,540

2,469

5,028

93) (152) (809

4,160

) (28

4,132

2000in CHF m

000

6,197(666

5,531

1,523359122

2,004

248

250868

1,366

3,370

2,161

261310

292

1,869

0) 0) (406

1,463

) (146

1,317

New basis1999

in CHF m

000

2) 4,226) (853

3,373

1,298297205

2) 1,800

132

287782

2) 1,201

3,001

372

15390

162

210

00

) (45

165

) (40

125

2000in CHF m

5,31316,5968,791

2) 6,166) 365

37,231

16,1391,518

8462) 18,503

1,059

1,2124,374

2) 6,645

25,148

12,083

1,510246

1,265

3,021

9,062

105(1,796

) (1,349

6,022

) (237

5,785

New basis1999

in CHF m

5,33810,8566,5784,166(294

26,644

11,6291,205

720

13,554

863

1,1523,212

5,227

18,781

7,863

981110

1,540

2,631

5,232

93) (152) (855

4,318

) (68

4,250

Previouslyreported

1999in CHF m

5,25210,8706,5785,060

) 110

27,870

11,5561,201

752

13,509

933

1,1023,194

5,229

18,738

9,132

937108

1,540

2,585

6,547

93) (152) (1,149

5,339

) (118

5,221

))

)

Previously reported

1999in CHF m

000

2) 5,060) (467

4,593

1,225293237

2) 1,755

202

249752

2) 1,203

2,958

1,635

10970

116

1,519

00

) (340

1,179

) (90

1,089

Banking business TotalInsurance business



6 Income statement by origin

Net interest incomeNet commission and service fee incomeNet trading incomeIncome from the insurance businessOther ordinary income

Operating income


Operating expenses


% of total

Depreciation and write-offs on non-current assetsamortisation of goodwill

Valuation adjustments, provisions and losses



Extraordinary (expense)/incomeTaxes 1)

% of total


Minority interests

Net profit

% of total

1) Includes impact from extraordinary items.

7 Analysis of extraordinary incomeRelease of reserve for general banking risksGains from the disposal of participationsOther extraordinary income

Total extraordinary income

8 Analysis of extraordinary expensesAllocation of reserve for general banking risksRestructuringOther extraordinary expenses

Total extraordinary expenses

Change to new basis

OutsideSwitzerland

in CHF m

(6644,6071,7941,077

164

6,978

4,3431,135

5,478

1,500

257) (249

8

1,492

) (1,486) 316

322

(195

127

Changein %

) (62) (82

56

13

Changein %

88–

169

–

)

)

)

)

))

Change tonew basis

Switzerlandin CHF m

6391,133

419923

) 495

3,609

606283

889

2,720

408(26

382

2,338

) (146) (810

1,382

) 26

1,408

Change in CHF m

(13(934

12

Changein CHF m

891,489

66

1,644

New basis1999

OutsideSwitzerland

in CHF m

2,6206,6455,2072,515

) (60

16,927

9,7743,195

12,969

3,958

50%

756808

1,564

2,394

) (53) (682

80%

1,659

(69

1,590

37%

1999in CHF m

211161

93

1999in CHF m

1011239

152

New basis1999

Switzerlandin CHF m

2,7184,2111,3711,651(234

9,717

3,7802,032

5,812

3,905

50%

335732

1,067

2,838

) (6) (173

20%

2,659

) 1

2,660

63%

2000in CHF m

82

95

105

2000in CHF m

1901,501

105

1,796

2000Outside

Switzerland in CHF m

1,95611,2527,0013,592

104

23,905

14,1174,330

18,447

5,458

45%

1,013 559

1,572

3,886

) (1,539) (366

27%

1,981

(264

1,717

30%

2000Switzerland

in CHF m

3,3575,3441,7902,574

261

13,326

4,3862,315

6,701

6,625

55%

743 706

1,449

5,176

(152(98373%

4,041

27

4,068

70%

72

9 Income statement of the banking business

Net interest income

Result from commission and service fee activitiesCommission income from lending activitiesCommissions from securities and investment transactionsCommissions from other servicesCommission expenses

Net commission and service fee income

Net trading income

Other ordinary incomeIncome from the sale of financial investmentsIncome from investment activities– of which from participations valued according to the equity method– of which from other non-consolidated participationsReal estate incomeOther ordinary incomeOther ordinary expenses

Other ordinary income/(expenses), net

Operating income


Operating expenses


Depreciation and write-offs on non-current assets– of which on real estate– of which on other tangible fixed assets– of which on intangible assets– of which on goodwill– of which on non-consolidated participationsValuation adjustments, provisions and losses




Profit before minority interests

Minority interests

Net profit

Change in %

) 0

215370

) 30

53

34

1031011086491

) (5) 29

81

36

4031

38

32

584618

–113

–) (18

11

43

13) –) 17

10

) 225

8

)

)

)

Changein CHF m

(13

1235,549

276) (189

5,759

2,213

51872657

30(19

) (132

469

8,428

4,7451,253

5,998

2,430

53540

13323211416

(275

260

2,170

12) (1,644) (134

404

) (63

341

1999in CHF m

5,252

59410,523

393) (640

10,870

6,578

50571601133

421) (453

577

23,277

11,7544,026

15,780

7,497

92987

72912

1010

1,540

2,469

5,028

93) (152) (809

4,160

) (28

4,132

2000in CHF m

5,239

71716,072

669(829

16,629

8,791

1,0231431251863

402(585

1,046

31,705

16,4995,279

21,778

9,927

1,46412786224421516

1,265

2,729

7,198

105(1,796

(943

4,564

(91

4,473



10 Analysis of net interest income

Interest and discount incomeInterest income on loans due from customersInterest income on loans due from banksInterest income from money market papersCredit commissions treated as interest earningsInterest income from leasing operations

Total interest and discount income

Interest and dividend income from trading portfoliosInterest incomeDividend income

Total interest and dividend income from trading portfolios

Interest and dividend income from financial investmentsInterest incomeDividend income

Total interest and dividend income from financial investments

Interest expensesInterest expenses for liabilities due to customersInterest expenses for liabilities due to banks

Total interest expenses

– of which interest expenses for subordinated liabilities

Net interest income

11 Analysis of net trading incomeIncome from trading in debt instrumentsIncome from trading in equity instrumentsIncome from foreign exchange and banknote tradingIncome from precious metals tradingOther income from trading

Total net trading income

1) Prior year comparative numbers have been restated to be consistent with the current year’s presentation.

12 Analysis of valuation adjustments, provisions and losses from the banking business

For default risks (credit and country risks)For other business risksLosses– of which losses from lending activities

Total valuation adjustments, provisions and losses

Change in %

3289694

31

56

4338

42

2173

50

) 26) 151

) 69

) 6

) 0

Changein %

683

) (208

844

34

Changein %

) (19) (32

8582

) (18

)

))

)

Changein CHF m

3,3566,699

7061030

10,801

1,492246

1,738

6229

235

) (3,207) (9,592

) (12,799

) (46

(25

1) Changein CHF m

1551,972(269

9346

2,213

Changein CHF m

(197(144

6628

(275

1999in CHF m

10,4977,5261,019

24296

19,380

3,488639

4,127

339132

471

) (12,268) (6,372

) (18,640

) (833

5,338

1999in CHF m

2,7112,3681,344

11441

6,578

1999in CHF m

1,0124507834

1,540

2000in CHF m

13,85314,2251,725

252126

30,181

4,980885

5,865

345361

706

(15,475(15,964

(31,439

(879

5,313

2000in CHF m

2,8664,3401,075

123387

8,791

2000in CHF m

81530614462

1,265

74

13 Income statement of the insurance business

Non-life Net premiums writtenChange in provision for unearned premiums

and in provision for future policy benefits (health)

Net premiums earned

Claims and annuities paidChange in provision for unpaid claims and annuities

Claims incurred

Dividends to policyholder paidChange in provision for dividends to policyholders

Dividends to policyholders incurred

Operating expenses

Underwriting result non-life

Net investment incomeInterest received on deposits and bank accounts Interest paidOther income/(expenses), incl. exchange rate adjustments

Profit before taxes and minority interests – non-life

Life Net premiums writtenChange in provisions for unearned premiums

Net premiums earned

Death and other benefits paidChange in provisions for death and other benefits

Death and other benefits incurred

Change in provision for future policy benefits

Dividends paid to policyholdersChange in provision for future dividends to policyholders

Dividends to policyholders incurred

Operating expensesNet investment incomeInterest received on deposits and bank accountsInterest on bonuses credited to policyholdersInterest paidOther income/(expenses), incl. exchange rate adjustments

Profit before taxes and minority interests – life

CombinedProfit before taxes and minority interests – non-lifeProfit before taxes and minority interests – life

Total profit before taxes and minority interests

Interest expense on convertible bonds and warrants issuedAmortisation of goodwillTaxes

Profit before minority interests

Minority interests

Net profit

Change topreviously

reportedin %

15

93

12

1420

14

) (9(336

) 20

10

33

233758

–

21

7) (99

8

23) 713

26

) (21

(781

7

93

) (29) (11) (1) –

) 38

21) 38

27

–34319

24

62

21

))

)

)

)

)))

Change tonew basis

in %

16

) 103

12

) 14) 5

) 14

) (943

) (3

) 9

) 13

417

) 48) 89

88

8) (150

8

) 23) (17

) 21

) (20

) 2) –

) 43

) 3520

(35) (1) (2

(42

(299

88(299

773

) –) 244) 802

787

) 265

954

Previouslyreported

1999in CHF m

12,678

) (576

12,102

) (8,873) (271

) (9,144

) (340) 28

) (312

) (3,594

) (948

1,94270

) (72(30

962

14,171(70

14,101

) (7,687) (39

) (7,726

) (8,092

) (1,546(300

) (1,846

) (1,5415,865

124) (130) (217) 30

) 568

962) 568

1,530

) (4) (7) (340

1,179

) (90

1,089

New basis1999

in CHF m

12,604

) (548

12,056

) (8,835) (310

) (9,145

) (341) (46

) (387

) (3,639

) (1,115

1,69190

) (7728

617

14,088) 2

14,090

) (7,649) (384

) (8,033

) (7,945

) (1,415) 31

) (1,384

) (1,2525,048

135) (117) (220) (716

(394

617(394

223

) (4) (9) (45

165

) (40

125

2000in CHF m

14,632

(1,113

13,519

(10,108(324

(10,432

(309(66

(375

(3,971

(1,259

2,38596

(11453

1,161

15,172(1

15,171

(9,417(317

(9,734

(6,377

(1,439(543

(1,982

(1,6856,051

88(116(215(416

785

1,161785

1,946

(46(31

(406

1,463

(146

1,317

Notes

14

15

14

15



14 Analysis of insurance premiums by region

Non-lifeSwitzerlandEurope excl. SwitzerlandNorth AmericaAsia-PacificOther regions

Gross premiums direct business – non-life

Reinsurance assumed, gross

Gross premiums written – non-life

Reinsurance ceded

Net premiums written – non-life

Life SwitzerlandEurope excl. SwitzerlandAsia-Pacific

Gross premiums direct business – life

Reinsurance assumed, gross

Gross premiums written – life

Reinsurance ceded

Net premiums written – life

CombinedTotal SwitzerlandTotal Europe excl. SwitzerlandTotal North AmericaTotal Asia-PacificTotal other regions

Total gross direct business premiums

Total reinsurance assumed, gross

Total gross premiums written

Total reinsurance ceded

Total net premiums written

Change topreviously

reportedin %

22322

) (1852

18

20

18

43

15

012

281

8

) 650

8

201

7

118229552

13

24

13

53

11

)

Change tonew basis

in %

22422

(1852

18

38

19

) 45

16

013

281

9

(25

9

) 141

8

119229552

13

34

14

) 53

12

Previouslyreported

1999in CHF m

2,8677,8942,627

24342

13,673

320

13,993

) (1,315

12,678

7,8206,294

148

14,262

2

14,264

) (93

14,171

10,68714,1882,627

39142

27,935

322

28,257

) (1,408

26,849

New basis1999

in CHF m

2,8737,8392,627

24342

13,624

277

13,901

) (1,297

12,604

7,8136,223

148

14,184

20

14,204

) (116

14,088

10,68614,0622,627

39142

27,808

297

28,105

) (1,413

26,692

2000in CHF m

2,9339,7163,213

19964

16,125

383

16,508

(1,876

14,632

7,8147,059

564

15,437

15

15,452

(280

15,172

10,74716,7753,213

76364

31,562

398

31,960

(2,156

29,804

76

15 Analysis of net investment incomefrom the insurance business

Non-lifeDebt instruments and loansEquity instrumentsReal estate MortgagesShort-term investmentsNon-consolidated participations

Investment income – non-life

Realised gains on real estateRealised losses on real estateRealised gains/(losses) on other investments(Depreciation)/appreciation on investments

Gains/(losses) on investments

Investment expenses

Net investment income – non-life

LifeDebt instruments and loans Equity instrumentsReal estateMortgages Short-term investmentsNon-consolidated participations

Investment income – life

Realised gains on real estateRealised losses on real estateRealised gains/(losses) on other investments(Depreciation)/appreciation on investments

Gains/(losses) on investments

Investment incomeGains/(losses)

Total net investment income where the investment risk is borne by the policyholders

Investment expenses

Net investment income – life

Combined Total debt instruments and loansTotal equity instrumentsTotal real estateTotal mortgagesTotal short-term investmentsTotal non-consolidated participations

Total investment income

Total gains/(losses) on investments

Total net investment income where the investment risk is borne by the policyholders

Total investment expenses

Total net investment income from the insurance business

Change topreviously

reported in %

10(45

) (322

11478

(1

89(4091

) 87

103

62

23

6(43(5

) (237

(50

(4

–) –

146(180

113

106) (191

) (147

(1

3

7(44(14

) (27627

(3

110

) (147

17

8

))

)

)

)))

)

)

)

)

)

)

)))

)

)

Change tonew basis

in %

1039(62

38700

16

106) 133

112) (7

119

) 72

41

843

(237

–

7

–) (41

18722

240

93(185

(144

) 1

20

8121

(238

850

9

194

(144

) 21

25

Previouslyreported

1999in CHF m

935291177585127

1,539

35) (47

536) (15

509

) (106

1,942

2,6257153934084918

4,208

7) (1

1,085) 132

1,223

104599

703

) (269

5,865

3,5601,006

57046610045

5,747

1,732

703

) (375

7,807

New basis1999

in CHF m

93311512858796

1,319

32) (12

482) (30

472

) (100

1,691

2,592387360408490

3,796

8) (86

930) (86

766

111) 639

) 750

) (264

5,048

3,525502488466128

6

5,115

1,238

) 750

) (364

6,739

2000in CHF m

1,02916012059

10948

1,525

66(28

1,022(28

1,032

(172

2,385

2,793404372398679

4,043

91(51

2,670(105

2,605

214(544

(330

(267

6,051

3,82256449245717657

5,568

3,637

(330

(439

8,436



16 Money market papersGovernment treasury notes and billsMoney market placementsOther bills of exchange and money market papers

Total money market papers

– of which rediscountable or pledgeable with central banks

17 Due from customers from lease financingCar leasingReal estate leasingLeasing of capital goods

Total due from customers from lease financing

18 Loans (due from customers, mortgages) by economic sector

ServicesWholesale/retail tradeTransport and communication, hotels and cateringOther services

Total services

ManufacturingFood and beveragesTextilesTimber, furniture, oilPlastic, rubber, leatherChemicalsMetals, building installationsMachinery, equipment, vehiclesOther manufacturing

Total manufacturing

ConstructionEnergy, environmental protectionAgriculture and mining

Total commercial (non-financial)

Consumer

Financial enterprises

Public authorities

Total loans

in % of total loans

Change in %

20191

) (67

4

) (23

Changein %

211320

18

New basis1999in %

of total

5

417

26

10111130

8

241

41

30

25

4

100

)

)

Changein CHF m

1,20811,360

(11,435

1,133

(2,804

Changein CHF m

8663

257

406

2000in %

of total

4

418

26

00101120

5

241

38

34

26

2

100


6,0285,938

17,028

28,994

11,966


417490

1,294

2,201

New basisTotal


9,511

7,38730,407

47,305

1,723691

2,4541,2432,3351,9255,124

763

16,258

3,4477,4331,345

75,788

55,236

44,859

6,811

182,694

100


7,23617,2985,593

30,127

9,162


503553

1,551

2,607

Total31 Dec. 2000

in CHF m

10,191

9,28942,502

61,982

1,500818

1,949911

1,7842,1315,370

370

14,833

4,1018,3612,040

91,317

80,275

61,027

5,070

237,689

100

OutsideSwitzerland


2,062

4,86120,926

27,849

568412766146

1,187955

2,783316

7,133

3317,9171,083

44,313

32,804

49,808

3,128

130,053

55

Switzerland31 Dec. 2000

in CHF m

8,129

4,42821,576

34,133

932406

1,183765597

1,1762,587

54

7,700

3,770444957

47,004

47,471

11,219

1,942

107,636

45

New basisOutside


in CHF m

1,768

3,29711,148

16,213

799346

1,157504

1,278795

2,770226

7,875

3667,134

726

32,314

6,688

38,723

4,889

82,614

45

New basisSwitzerland


7,743

4,09019,259

31,092

924345

1,297739

1,0571,1302,354

537

8,383

3,081299619

43,474

48,548

6,136

1,922

100,080

55

78

19 Analysis of loan collateral as of 31 December 2000

Due from customersResidential propertiesBusiness and office propertiesCommercial and industrial propertiesOther properties

Mortgages

Total loan collateral

Total loan collateral as of 31 December 1999 (new basis)

20 Securities and precious metals trading portfoliosDebt instruments

listed on stock exchangeunlisted

Total debt instruments

– of which own bonds and medium-term notes

Equity instruments

– of which own shares

Precious metals

Total securities and precious metals trading portfolios

– of which securities rediscountable or pledgeable with central banks

Substantial assets and liabilities included in other balance sheet positions 1)

Lent trading positions (due from banks and customers) Borrowed trading positions (due to banks and customers)

Derivative instruments from trading activitiesPositive replacement values (other assets)Negative replacement values (other liabilities)

1) These are valued at fair value and any profit/loss is shown under trading income.

Totalin CHF m

145,257

92,432

237,689

182,694

Change in %

29118

62

454

50120

3

57

68

–) (44

1321

)

Withoutcollateral

in CHF m

58,670

58,670

39,615

Changein CHF m

14,22635,500

49,726

686

22,3834,082

62

72,171

29,321

183(2,090

4,9198,637

Othercollateral

in CHF m

80,630

80,630

59,452


49,45830,178

79,636

151

45,1523,392

1,958

126,746

43,297

04,703

39,00040,663

Mortgagecollateral

in CHF m

5,95758,98113,05311,1659,233

92,432

98,389

83,627


63,68465,678

129,362

837

67,5357,474

2,020

198,917

72,618

1832,613

43,91949,300

Notes

28

33



21 Own shares included in securities trading portfoliosIn registered share equivalents, including derivativesat beginning of financial year at end of financial year

22 Financial investments from the banking business

Debt instrumentslisted on stock exchangeunlisted

Total debt instruments– of which valued according to the accrual method– of which valued at lower of cost or market– of which own bonds and medium-term notes

Equity instrumentslisted on stock exchangeunlisted

Total equity instruments– of which own shares– of which qualifying participations

Precious metalsReal estate

Total financial investments from the banking business

– of which valued at lower of cost or market– of which securities rediscountable or

pledgeable with central banks

1999in CHF m

9236

Market value31 Dec. 1999

in CHF m

734

4,526

92,055

7,324

1999No. of shares

427,516109,690


in CHF m

946

6,758

92,469

10,182

2000in CHF m

36465

Cost31 Dec. 1999

in CHF m

737

1,938

92,203

4,887

2000No. of shares

109,6901,508,907

Cost31 Dec. 2000

in CHF m

965

3,564

92,620

7,158

Book value31 Dec. 1999

in CHF m

9,2041,449

10,6539,940

7132

1,9044,207

6,111204

2,606

92,055

18,828

4,681

9,556


in CHF m

12,2301,734

13,96413,035

9291

3,3605,772

9,1320

3,139

92,469

25,574

6,767

11,056

80

23 Investments from the insurance business

Non-lifeDebt instrumentsEquity instrumentsReal estateMortgagesLoansShort-term investmentsNon-consolidated participations

Investments – non-life

LifeDebt instrumentsEquity instrumentsReal estateMortgagesLoansShort-term investmentsNon-consolidated participations

Investments – life

Equity instrumentsDebt instruments and loansShort-term investmentsReal estate

Total investments where investmentrisk is borne by the policyholder

Investments – life

CombinedTotal debt instrumentsTotal equity instrumentsTotal real estateTotal mortgagesTotal loansTotal short-term investmentsTotal non-consolidated participations

Total investments

Total investments where investmentrisk is borne by the policyholder

Total investments (insurance view)

Less debt instrument, loans issued by groupcompanies, non-consolidated participationsand own use real estate not included inthe investments from the insurance business

Less mortgages, previously not included in investments form the insurance business

Total investments from the insurance business

1) Cost column balance represent amortised costs.2) In previously reported 1999 financial statements, loans were reported together with debt instruments.

New basisMarket value

31 Dec 1999in CHF m

16,5937,0482,301

44,19322,1998,219

60,78629,24710,520


in CHF m

1) 17,4806,5292,176

1) 47,58625,2488,182

1) 65,06631,77710,358

New basisCost


1) 16,4054,6241,942

1) 43,14914,0137,114

1) 59,55418,6379,056

Cost31 Dec. 2000

in CHF m

17,1815,0251,882

46,51019,1277,139

63,69124,1529,021

)

)

Previouslyreported


in CHF m

2) 16,5927,1374,1761,336

2) 01,201

347

30,789

2) 48,47723,6218,8397,454

2) 047787

88,955

4,912788898104

6,702

95,657

2) 65,06930,75813,0158,790

2) 01,678

434

119,744

6,702

126,446

) (434

(8,790

117,222

New basisBook value


16,5937,0481,6601,335

1361,270

315

28,357

44,19322,1995,7757,4424,307

40785

84,408

5,360988918104

7,370

91,778

60,78629,2477,4358,7774,4431,677

400

112,765

7,370

120,135

) (2,364

117,771


in CHF m

17,4806,5291,5851,869

1541,858

192

29,667

47,58625,2485,7737,5554,3241,590

205

92,281

10,1361,2331,402

118

12,889

105,170

65,06631,7777,3589,4244,4783,448

397

121,948

12,889

134,837

(2,205

132,632



24 Own shares included in financial investmentsfrom the banking and insurance business

In registered share equivalents, including derivativesat beginning of financial yearat end of financial year

25 Non-consolidated participationsParticipations valued according to the equity methodOther non-consolidated participations

Total non-consolidated participations

Listed on stock exchangeUnlisted

26 Analysis of capital assetsin CHF m

Participations valued according to the equity methodOther non-consolidatedparticipations

Non-consolidated participations

Own use premisesOther real estate

Real estateOther tangible fixed assets

Tangible fixed assets

Acquired intangible assetsGoodwillPresent value of future profitsOther intangible assets

Intangible assets

Total capital assets

27 Additional information on fixed assetsFire insurance value of real estateFire insurance value of other tangible fixed assetsFuture operating lease commitments 1)

1) Incl. non-cancellable premises rentals (prior year comparative numbers were restated to be consistent with the current year).

28 Analysis of other assetsPositive replacement value of derivative instruments

Trading derivative instrumentsOther derivative instruments

Total positive replacement value of derivative instruments

Compensation accountDeferred tax assetsOther

Total other assets

1999in CHF m

56

Change topreviously

reportedin %

) 3(9

0

(10014

Change in %

1222

102

Change topreviously

reported in %

1337

13

) (100) 256

16

23

)

)

)

1999No. of shares

21,32519,234

Change tonew basis

in %

(772

2

–2

Changein CHF m

1,986695

4,607

Change tonew basis

in %

1340

13

(100(2525

6

2000in CHF m

636

Previouslyreported


1,415408

1,823

2231,600


16,6393,1944,508

Previouslyreported


38,963817

39,780

2351,9352,359

44,309

2000No. of shares

19,234117,871


in CHF m

1,574215

1,789

01,789


18,6253,8899,115


in CHF m

39,000799

39,799

2359,2282,200

51,462


1,459370

1,829

01,829


43,9191,118

45,037

06,8832,748

54,668

Book value at31 Dec.

2000

1,459

) 370

) 1,829

) 5,586) 447) 6,033) 3,880

) 9,913

) 7,12012,869

) 2,522788

) 23,299

) 35,041

Foreign ex-change diff.

and reclassi-fications

30

) (55

) (25

) (249) (72) (321) (170

) (491

) (128) 32) (119) 152

) (63

) (579

Write-offs/depreciation

) 0

) (16

) (16

) (229) (10) (239) (933

) (1,172

(157) (246

(14) (151

) (568

) (1,756

Disposals

(226

(15

(241

(213(75

(288(63

(351

0(41

0(24

(65

(657

Additions

72

212

284

23511

2461,315

1,561

010,696

0465

11,161

13,006

Change inscope of

consolidation

9

29

38

48128176

1,179

1,355

6,8100

1,150137

8,097

9,490

New basisBook

value at31 Dec.

1999

) 1,574

) 215

) 1,789

) 5,994) 465) 6,459) 2,552

) 9,011

) 595) 2,428) 1,505) 209

) 4,737

) 15,537

Write-offs/ accumulateddepreciation

(52

(1

(53

(1,131(61

(1,192(2,811

(4,003

(14(89(40

(115

(258

(4,314

Historicalvalue

1,626

216

1,842

7,125526

7,6515,363

13,014

6092,5171,545

324

4,995

19,851

82

29 Analysis of assets by country and country groupsSwitzerland

EU and EFTA– of which United Kingdom

GermanyFranceItalySpainLiechtenstein

USCanadaMexicoJapanAustraliaNew ZealandSouth Africa

Financial centres outside the industrialised countries– of which Hong Kong

SingaporeBahamasCayman Islands

Other Europe– of which Russia

Czech RepublicPolandHungary

Middle East countriesCentral and South America– of which Argentina

Brazil

Asia and Pacific regionAfrica

Total assets

The above analysis is based on the location of assets and does not take into account any collateral or hedges through structured off-balance sheet transactions. Market and credit risks can therefore not be judged based on the above schedule.

30 Assets pledged or assigned andassets subject to ownership reservation 1)

Assets pledged and assigned as collateralActual commitments secured

1) None of the Group’s assets were under reservation of ownership either in 2000 or in the previous year.2) Thereof assets provided with the right to sell or repledge with respect to securities lending and borrowing and repurchase agreements as of 31 Dec. 2000: CHF 91,968 m.

31 Liabilities for own pension fundsTotal liabilities for own pension funds


in %

27

351392310

25005100

30101

10000

1101

10

100

Changein %

3227

Changein %

) (28)


in CHF m

193,976

252,21897,43366,87416,87318,9248,5361,375

184,5563,9661,348

34,6544,333

9051,240

18,7272,7234,1111,1434,791

6,7222,807

397252365

4,9118,5631,0956,223

11,4021,501

729,022

Changein CHF m

26,09219,596

Changein CHF m

(279

31 Dec. 2000in %

21

281172210

38106100

20001

10000

0101

10

100


2) 82,67873,344

31 Dec. 1999 in CHF m

1,001


210,704

279,519107,48066,63418,80222,47210,9141,821

373,0715,6161,486

55,6956,7551,127

680

18,3053,3493,212

5125,950

8,2032,847

390646457

3,55910,0912,3016,138

11,0701,552

987,433


108,77092,940


722



32 Analysis of bonds issued – summaryBondsBonds issued by the central issuing office of the Association of Swiss Regional BanksMortgage bonds issued by the Swiss Mortgage Bond Bank

Total bonds issued

32a Bonds issued by Credit Suisse Group

Maturity date

06.08.200115.12.200304.10.200431.10.200623.05.200715.09.200802.07.2009

32b Bonds issued by subsidiaries

Credit Suisse Group Finance (Guernsey) Ltd., St. Peter Port

19.11.200224.02.200317.02.200404.03.200429.07.2019

All bonds issued by Credit Suisse Group Finance (Guernsey) Ltd. are guaranteed by Credit Suisse Group.

Credit Suisse Group Finance (U.S.) Inc., Wilmington

05.10.200305.10.200505.10.201005.10.201005.10.201005.10.2020

All bonds issued by Credit Suisse Group Finance (U.S.) Inc. are guaranteed by Credit Suisse Group.


63,98538

1,501

65,524

Change tonew basis

in %

42 (48 (6

40

Earliest datecallable

05.10.200505.10.2005

Yearof issue

1993199420001997199719981999

19921999199919991999

200020002000200020002000

Convertible bond

Step-up callable bondsStep-up callable bonds

Change to previously

reportedin %

38 ) (48

(6

37

Par valuein m

500250600800

1,000500500

14250250250400

1,0001,250

500300750250

)

CHFCHFCHFCHFCHFCHFCHF

USDUSDEURCHFEUR

USDEUREUREURUSDGBP

))

6)

1)

1)

1)

1)

1)

1)

Interest rate

2.25%6.00%

4.125%4.00%4.00%3.50%3.50%

4.875%5.50%3.75%2.50%floating

floating5.75%

6.625%floatingfloating7.00%

Previouslyreported


46,23373

1,599

47,905


in CHF m

44,99773

1,599

46,669

84

32b Bonds issued by subsidiaries (continued)

Maturity date

Credit Suisse First Boston, Zurich

01.03.200105.06.200131.07.200115.10.200115.01.200220.02.200215.05.200231.03.200325.04.200329.09.200317.11.200322.04.200418.11.200430.12.200431.03.200517.11.200510.11.200530.06.200630.06.200601.05.200712.06.200712.06.200715.06.200706.07.200706.07.200723.07.200719.02.200801.05.200810.07.200913.10.200915.12.200901.03.201025.04.201025.04.201011.05.201009.08.201029.06.201122.10.201427.01.201510.03.201620.04.201715.10.201903.01.202215.01.202230.12.202402.01.202502.01.202630.12.202630.12.202703.01.202815.10.202915.10.2029perpetualperpetualperpetualperpetual

Par valuein m

69170150

1,4981007560

20075

20060020030010022520050

23895

500750500150150100498165200150225150100250160415

3,0001251515

20026125

922415204619402525

10010,000

150250

3)

1)

2)

1)

1)

1)

3)

1) 3)

1) 3)

1) 3)

1) 3)

1)

3)

3)

1) 4)

1) 4)

1) 3)

1) 3)

1) 3)

1) 4)

1)

1)

1) 3)

3)

1) 5)

1) 3)

1) 3)

1) 3)

1) 4)

1) 4)

1) 4)

1) 3)

1) 4)

1) 4)

1) 3)

1) 4)

1)

2)

1) 3)

1) 3)

1) 4)

1) 3)

1) 3)

1) 3)

1) 3)

1) 3)

1) 3)

1) 3)

1) 4)

1) 3)

1) 3)

1) 4)

1) 4)

Earliestdate callable

10.07.200701.12.2028

Yearof issue

20001990199119971992199119921993199619931993199619941994199519971997199619971997199719972000199519951997199819981997199919992000200020001998200019991999200019862000199919992000199919991999199919991999199919991997199820002000

Interest rate

5.58%7.25%7.00%7.32%7.00%7.50%6.75%3.50%1.00%6.04%6.16%4.38%8.38%6.04%5.75%2.00%2.00%7.21%6.84%7.90%6.41%6.50%6.66%5.25%5.25%4.38%2.00%6.50%8.25%6.25%6.00%6.50%6.78%6.77%5.75%2.18%7.16%8.68%9.00%5.00%7.44%7.15%variable8.43%variablevariablevariablevariablevariablevariable7.05%9.35%7.74%4.51%8.15%8.34%

USDCHFCHFUSDCHFCHFCHFCHFUSDUSDDEMCHFUSDDEMCHFUSDUSDUSDUSDUSDFFRFFRCHFCHFCHFCHFUSDUSDGBPEUREUREURUSDUSDDEMJPYUSDEUREURCHFAUDEURUSDUSDUSDUSDUSDUSDUSDUSDEUREURUSDJPYGBPEUR




Maturity date

Credit Suisse, Zurich

20.02.200128.07.200117.09.200117.12.200120.02.200216.03.200230.06.200225.09.200215.01.200315.01.200331.03.200302.02.200528.04.200512.10.200513.11.200505.01.200608.02.200831.07.200912.11.200910.02.201007.09.2010

Neue Aargauer Bank, Aarau

28.06.200207.04.201011.03.200120012001–2007

Credit Suisse (Luxembourg) S.A., Luxembourg

31.12.200106.08.2003

Credit Suisse Guernsey Branch, St. Peter Port

perpetual

Credit Suisse First Boston Finance (Guernsey) Ltd., St. Peter Port

31.10.2002

Credit Suisse First Boston International (Guernsey) Ltd., St. Peter Port

05.03.200120.03.200120.03.200102.04.200102.04.200112.04.200113.07.200116.07.200104.10.200110.10.200115.10.200129.08.2003

Par valuein m

150200150125125200100100100100250100120150300150200200600300200

100130

533

947

2,5001,500

125

500

25012025103

10455560

10015019


09.07.2009

Yearof issue

199119941991199319911992199219921991199219931995199519951995199619961997199920002000

1996200019911993

1991–1999

19911993

1999

1992

200020002000199819982000200020002000200020001998

Interest rate

7.50%5.00%7.00%2.75%7.50%6.75%7.25%7.75%7.75%7.25%5.25%5.50%5.75%5.00%

3.125%4.375%4.50%4.00%5.00%

4.625%4.75%

4.25%5.00%7.25%

4.5%–6.0%2.8%–7.38%

9.125%7.25%

6.25%

0.00%

variablevariablevariable4.34%4.23%6.80%7.01%variablevariablevariablevariable2.67%

CHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHFCHF

CHFCHFCHFCHFCHF

LUFLUF

EUR

DEM

USDUSDUSDDEMDEMUSDUSDUSDUSDUSDUSDCHF

1)

1)

6)

1) 7)

1)

1) 7)

1) 7)

7)

1)

1)

1) 6) 7)

1)

1) 7)

1)

1)

1)

1)

1)

1)

1)

1)

1)

Central issuing office of the Association of Swiss Regional BanksCentral issuing office of the Association of Swiss Regional BanksMortgage bonds issued by the Swiss Mortgage Bond Bank, Zurich

86


Maturity date

Credit Suisse First Boston Finance B.V., Amsterdam

01.07.200326.05.200325.08.2003perpetual

Credit Suisse First Boston (Cayman) Ltd., Grand Cayman

01.05.200107.11.200108.11.200117.01.200115.08.200112.09.200117.12.200106.02.200222.05.200205.06.200218.09.200209.10.200222.01.200305.02.200321.05.200304.06.200317.09.200308.10.200319.11.200321.01.200415.03.2005

Credit Suisse First Boston (Cyprus) Ltd., Limassol

19.12.2002

Credit Suisse First Boston Garantia, São Paulo

03.04.200112.06.2003

Credit Suisse First Boston Inc., New York

01.01.200101.02.200114.02.200126.03.200130.04.200130.04.200115.05.200101.06.200122.06.200101.07.200131.07.200101.08.200101.08.200116.08.200107.09.200118.09.200101.03.2002

Par valuein m

3,000200200150

25507565

6642,582

218133116304187626713737579480469531367310

2

163

12,50074

969434200

550

220500785220

15012

860750

5,000100

1,500


Yearof issue

1993199319931986

199820002000

1998–20001998–19991998–20001999–20001999–20001999–20001999–20001999–20001999–20001999–20001999–20001999–20001999–20001999–20001999–2000

20001999–20001998–2000

2000

19951995

1995–20001995–2000

199619961995

1992–19961995–1998

2000199420002000200020001995199920002000

Interest rate

7.75%variablevariable5.69%

variable0.00%0.00%variablevariablevariable0.00%variablevariablevariablevariablevariablevariablevariablevariablevariablevariablevariablevariablevariablevariable

7.00%

12.00%11.00%

variousvarious6.62%6.75%variousvariousvariousvarious6.82%7.22%7.35%variousvarious6.44%0.62%7.04%0.65%

LUFUSDUSDUSD

USDUSDUSDRURRURRURRURRURRURRURRURRURRURRURRURRURRURRURRURRURRUR

RUR

JPYUSD

USDUSDDEMUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDFFRJPYUSDJPY

1)

1)

1)

1)

1)

1)

1)

1)

1)




Maturity date

30.11.200117.12.200109.01.200225.02.200215.03.200201.04.200230.05.200219.06.200218.07.200201.08.200230.08.200218.09.200219.12.200201.01.200327.01.200301.02.200321.02.200321.03.200301.04.200327.04.200315.05.200327.06.200318.07.200322.08.200308.01.200401.02.200420.02.200401.03.200425.03.200405.04.200430.04.200406.05.200406.07.200401.07.200420.10.200415.02.200501.03.200511.05.200527.06.200515.08.200505.09.200527.10.200501.11.200507.11.200502.03.200615.05.200631.03.200602.11.200601.02.200728.03.200717.07.200729.10.200701.04.200801.06.200815.09.200815.02.201315.02.200102.04.2018

Par valuein m

10500101060

65030109

265

3532106055

6510

1367

45400325502040

15016594

1501107010331

2095004001311

200500

51

2674

3460601

250150500103

2505


Yearof issue

19991995–1999

200020002000199920001997200020001994

1992–19971999

1999-200019931993

1993–20002000

1992–2000199319982000

1998–200020001999200019941994

1992–199919951992199920001999200020002000200020002000200019931995199520001996200019991995200020001997199819981999199319961993

Interest rate

6.95%various6.98%7.25%7.18%5.88%6.96%6.85%variousvarious8.04%variousvariousvarious7.65%8.10%various7.17%various7.26%various5.08%variousvarious7.49%various6.20%5.69%various6.94%variousvarious7.28%various7.08%various8.00%7.27%various7.20%7.05%7.18%6.88%6.95%7.09%7.75%7.08%7.33%various7.47%7.29%various6.50%6.50%7.42%8.50%5.63%7.71%

USDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDEURUSDUSDUSDUSDUSDUSDUSDDEMUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSDUSD

1)

1)

1)

1)

1)

1)

1)

1)

1)

1)

1)

1)

88


Maturity date

Credit Suisse First Boston International Ltd., London

13.06.200117.04.200108.02.200115.01.200126.01.200124.09.200125.10.200127.11.200119.02.200111.02.200101.08.200131.10.200215.01.200230.07.200219.12.200201.03.200224.04.200209.01.200201.08.200313.06.200306.11.200327.11.200304.02.200316.04.200305.05.200309.03.200319.03.200301.04.200301.12.200430.07.200416.06.200401.12.200415.02.200418.03.200407.08.200408.05.200407.02.200416.01.200408.06.200527.09.200508.12.200524.01.200501.12.200528.04.200527.04.200501.07.200518.01.200525.05.200606.11.200616.02.200620.03.200606.11.200619.12.200601.07.200601.07.2006

Par valuein m

10010018

115,00014,195

181,750

30150663109757010

20,00053,1303,500

439400200254039

14,393139,000

4,7001,500

17013153

105

441,000105,000

3,20070

12020025

200475,90060,0003,300

5009,362

11,27819505

331,20030,000

5005440


Yearof issue

19971998

1994–19991997–19981995–1999

1998199820001998

1995–200019911997

1996–199819971997

1996–19991992

1996-20001998199719952000

1997–19981998

1997–19981997–1999

19931995–2000

19941997199719941999

1997–19981997–19981995–1998

19971996–1998

199519951997

1997–20001997

1996–199819981997

1995–20001996–1998

19971998199819981996

1995–19981994

Interest rate

6.50%4.55%variousvariousvarious0.00%variable0.00%variousvariousvariablevariablevarious0.00%0.00%variousvariousvariousvarious8.00%0.00%0.00%various0.00%variousvarious7.63%various0.00%variable8.50%0.00%variablevarious0.00%various0.00%various8.25%variable0.00%0.00%0.00%variousvariable0.00%variousvarious0.00%9.13%various0.00%5.70%various0.00%

BEFDEMEURITLJPYNLGPTEEURSEKUSDUSDCHFDEMEURITLJPYLUFUSDATSBEFFRFEURGBPGRDITLJPYLUFUSDCHFDEMEUREURGBPITLITLJPYNOKUSDBEFFRFFRFITLITLJPYPTEPTEUSDDEMFIMGBPITLITLJPYUSDUSD

1)

1)

1)

1)

1)

1)

1)

1)

1)

1)

1)

1)

1)

1)




Maturity date

03.04.200710.04.200723.05.200706.11.200727.01.200715.05.200725.01.200702.07.200704.03.200830.11.200818.03.200824.02.200808.05.200802.06.200823.01.200810.03.200928.12.200924.08.200930.05.200915.05.200901.04.200906.01.201020.06.201018.10.201001.03.201030.09.201025.07.201104.06.201224.03.201218.04.201230.04.201224.04.201202.04.201329.07.201320.12.201422.09.201615.09.201715.05.201701.09.201716.02.201830.08.201826.03.201819.09.202115.12.202102.10.202214.12.2028perpetualperpetualperpetualperpetualperpetualperpetualperpetualperpetualperpetual

Par valuein m

120708050

103,6002,500

12140

155153

78,000100,000

70050023610821315

17,0001,500

182060

27,50030,000

10961159

12,00020,000

627,500

600250,000

3615

5,0001,700

3024,0001,800

10,0008140

133250130610100

50,00020,000

601,650

220

1)

1)

1)

1)

1)

1)

1)

1)

1)

1)

1)


Yearof issue

1996–199719971997199719971997

1997–199819971998

1993–19941998–2000

19981997–1998

19981995–19981994–19981994–1996

199919971997

1997–19981997199719981995

1997–19981993–1999

1997199919981998

1997–1998199819981994199819971997199719981998

1997–199819961995199719981997

1995–1998199819951998

1993–19951995–1997

19981992–1997

Interest rate

variousvariousvariable0.00%variousvariousvariousvariablevarious0.00%variousvariablevariousvariablevariousvarious0.00%0.00%6.70%variousvarious0.00%0.00%

10.00%0.00%variousvarious0.00%variousvariable8.00%various6.50%various0.00%variable0.00%3.30%0.00%6.00%variousvarious

16.00%0.00%0.00%

10.76%variablevariousvarious

10.25%variablevariousvariousvariablevariable

CHFDEMDEMFIMITLJPYUSDUSDDEMDEMITLITLJPYPTEUSDDEMDEMEURITLJPYUSDDEMDEMITLITLUSDUSDDEMEURITLITLUSDITLJPYITLUSDDEMJPYPTEDEMITLJPYJPYUSDDEMUSDUSDCHFDEMGBPITLJPYNLGPTEUSD

90


Maturity date

Bank Leu Ltd., Zurich

17.11.2006

Winterthur Capital Ltd., Hamilton, Bermuda

14.04.2005

Winterthur Swiss Insurance Company, Winterthur

31.03.2006

DBV-Winterthur, Wiesbaden

28.07.200328.07.2003

1) Subordinated bonds.2) Credit linked notes issued by Credit Suisse First Boston Guernsey branch.3) Issued by Credit Suisse First Boston London branch.4) Issued by Credit Suisse First Boston Nassau branch.5) Issued by Credit Suisse First Boston New York branch.6) Issue of bonds with warrants: ex warrant.7) Subparticipation of Credit Suisse First Boston issued bonds.

Par valuein m

100

500

500

100100


Yearof issue

1986

2000

2000

19981998

Convertible bondConvertible bond

Interest rate

5.00%

5.38%

4.00%

0.88%0.75%

CHF

EUR

CHF

DEMDEM

1)



33 Analysis of other liabilitiesNegative replacement value of derivative instruments

Trading derivative instrumentsOther derivative instruments

Total negative replacement value of derivative instruments

Compensation accountOther

Total other liabilities

34 Valuation adjustments and provisions/reserve for general banking risks in CHF m

Valuation adjustments and provisions for default risks (credit and country risk)

Valuation adjustments and provisions for other business risks

Provisions for taxes and deferred taxesProvisions for restructuring 3)

Other provisions

Total

Less valuation adjustments directly netted with assets

Total valuation adjustments and provisions as per balance sheet

Reserve for general banking risks

1) The decrease in deferred tax assets (CHF 348 m) is not included in provisions for taxes and deferred taxes.2) Change owing to deferred taxes on unrealised gains on investments from the insurance business.3) For the acquisition of Donaldson, Lufkin & Jenrette in 2000 a restructuring provision of CHF 1,499 m was created, of which CHF 645 m were used in the same

year. The resulting ending balance is CHF 854 m. Provisions for technology and restructuring costs for the Focus project and BZW declined by CHF 130 m, fromCHF 169 m at the beginning of the year to CHF 39 m at the end.

Change topreviously

reportedin %

2071

20

–) (34

10

)

)

Change tonew basis

in %

2179

22

–(28

13

Previouslyreported


41,175457

41,632

010,945

52,577

New basis31 Dec.1999

in CHF m

40,663437

41,100

010,127

51,227


49,300782

50,082

3257,246

57,653

New basisBalance as of

31 Dec. 1999

13,042

94911,922

222577

26,712

(12,493

14,219

2,131

Specificusage and

releases

(3,578

(80(1,045

(517(339

(5,559

) 3,523

(2,036

0

Change indefinition of

purpose(reclassifi-

cation)

) 175

) (330) (27) (189) 204

) (167

(185

) (352

6

Changein the

scope of consolidation

352

) 43) (399) 0

454

) 450

) (352

) 98

0

Recoveries,endangeredinterest and

currencydifferences

374

25) 263

(25(2

635

) (372

263

0

New creationcharged to

income statement

815

951,001

) 1,542) 305

3,758

) (910

2,848

190

New creationcharged to

equity

1) (1,933

(1,933

)

(1,933

Releasescredited

to incomestatement

) 2)

) 0

) 0

(8

Balance as of 31 Dec.

2000

11,180

7029,7821,0331,199

23,896

(10,789

13,107

) 2,319

92

35 Technical provisions forthe insurance business in CHF m

Non-life Provision for unearned premiums Provision for future policyholder benefits (health)Provision for unpaid claims and claim adjustment expensesActuarial provision for annuitiesProvision for future dividends to policyholders

Technical provision – non-life

Life Provision for unearned premiums Provision for future policyholder benefitsProvision for death and other benefitsProvision for future dividends to policyholdersBonuses held on deposit

Technical provision – life

Total technical provisions (before liabilities held for life products, where the investment risk is borne by policyholders)

Liabilities held for life products, where the investment risk is borne by policyholders

Total technical provisions for the insurance business

Change to new basis

grossin%

3012270

8

411228320

13

12

84

16

Change to new basis

netin%

2412(170

5

1331227320

13

11

84

16

)


net

4,0292,736

15,7121,2401,705

25,422

969,5293,0825,2193,409

81,248

106,670

7,311

113,981


gross

4,4632,736

19,5091,2471,706

29,661

1770,0143,1245,2213,409

81,785

111,446

7,311

118,757

31 Dec. 2000gross

5,8233,071

19,9621,3301,702

31,888

2478,4963,9906,9093,395

92,814

124,702

13,417

138,119

31 Dec. 2000net

4,9963,071

15,5601,3241,702

26,653

2177,8523,9296,9083,395

92,105

118,758

13,417

132,175



36 Statement of shareholders’ equityShareholders’ equity at beginning of financial yearReserve for general banking risksShare capitalCapital reserve Revaluation reserves from the insurance business Reserve for own shares Retained earnings Minority interests Net profit

Total shareholders’ equity at beginning of financial year

Reclassification from valuation adjustments and provisions(Release)/allocation of reserve for general banking risks, netDividends paidCapital increases, par value and capital surplusCapital increases, minority interestsAcquisition of minority interestsChanges in scope of consolidation affecting minority interestsConsolidation of previously not fully consolidated subsidiariesForeign exchange impactChange in revaluation reserves from the insurance business, netMinimum pension liability adjustmentMinority interests in net profit Net profit

Total shareholders’ equity at end of financial year

of which: Reserve for general banking risksShare capitalCapital reserveRevaluation reserves from the insurance businessReserve for own sharesRetained earningsMinority interests Net profit

1) Numbers are not comparable to 1999 published numbers as minority interests have been combined in one line item.

Significant shareholders:BZ Group Holding has notified Credit Suisse Group that it held as of 31 December 2000, on a consolidated basis 29,950,334 registered shares,corresponding to 9.998% of the total issued and outstanding registered shares of Credit Suisse Group, of which 6.44 % were recorded in theshare register of Credit Suisse Group with the right to vote.

37 Loans to members of the bank’s governing bodiesLoans to the bank’s governing bodies 1)

Loans to companies which are controlled by members of the bank’s governing bodies Contingent liabilities towards companies which are controlled by members of the bank’s governing bodies

1) The bank’s governing bodies are defined as the Credit Suisse Group Board of Directors and the Group Executive Board.

Change topreviously

reportedin %

416

) (70

) (95) (50

39

9

10012839

––

) (100) (16

(100) (154) (150) –

10111

27

91070

) (310

1844711

Changein %

170

) (2

)

))

)))))

)

)

1)

Change tonew basis

in %

416

(80

) (97(2924

16

100128

) 39––

) (100(16

) –(153

(4(30024936

42

91070

(130–

12336

Changein CHF m

130

(2

Previouslyreported

1999in CHF m

2,0485,382

10,9935,942

600) (2,196

2,3253,068

28,162

380

) (1,430759

3) (1,015

226(71

1,313) 999

0118

5,221

34,368

2,1315,444

11,6966,977

600) 552

1,7475,221


75112

107

New basis1999

in CHF m

2,0485,382

10,9945,994

600) (3,493

1,6193,416

26,560

380

) (1,430763

3) (643

2260

) 1,318) (516) 1

684,250

30,683

2,1315,444

11,7005,515

600(111

1,1544,250


88112

105

2000in CHF m

2,1315,444

11,7005,515

600(111

1,1544,250

30,683

6182

(1,9868,716

911(1

1900

(703(496

(2237

5,785

43,522

2,3196,009

19,8824,789

6001,5672,5715,785

94

38 Maturity structure of current assets, financial investments and borrowed funds as of 31 December 2000 in CHF m

Current assetsCash and other liquid assetsMoney market papersDue from banksReceivables from the insurance businessDue from customersMortgagesSecurities and precious metals

trading portfolios

Total current assets

As of 31 December 1999 (new basis)

Total financial investments 1)


Borrowed fundsMoney market papers issuedDue to banksPayables from the insurance businessDue to customers in savings and

investment depositsDue to customers, otherMedium-term notes (cash bonds)Bonds and mortgage-backed bonds

Total borrowed funds


1) Excluding investments from the insurance business.

39 Securities lending and borrowing and repurchase agreements

Due from banksDue from customers

Securities lending

Due from banksDue from customers

Reverse repurchase agreements

Due to banksDue to customers

Securities borrowing

Due to banksDue to customers

Repurchase agreements

Collateral received at fair value with the right to sell or repledge– of which sold or repledged at fair value

Change in %

255) (93

) (1

59) 0

49

) (47) (54

) (48

10721

77

)

)

))

)

Changein CHF m

125(127

(2

76,129(3

76,126

(2,040(383

(2,423

67,2387,203

74,441


49136

185

128,53627,932

156,468

4,327709

5,036

63,09333,641

96,734


1749

183

204,66527,929

232,594

2,287326

2,613

130,33140,844

171,175

300,929291,539

At sight

2,9285,639

20,744

39,2332

198,917

267,463

138,235

9,185

6,120

1,891152,099

8,807

363,968

226,768

126,521

Redeemableby notice

30912,6649,8712,585

28,088

53,517

51,019

495

21

09,714

39,16213,514

0914

63,304

68,341

Due within 3months

19,087198,188

64,3049,000

290,579

232,021

443

1,300

17,065177,132

10113,482

4139,054

317,156

223,079

Due within 3 to 12 months

4,9708,659

15,10314,297

43,029

39,266

2,929

1,188

2,29917,623

515,042

3939,774

45,136

27,495

Due within 12 months to 5 years

1222,756

12,44525,904

41,227

43,020

8,953

6,937

1,848588

154,4122,340

25,663

34,866

29,508

Due after

5 years

0681

11,58715,141

27,409

10,049

1,100

1,208

732,285

383,131

7920,119

25,725

29,016

No maturity

2,469

2,054

Total

2,92830,127

243,6929,871

145,25792,432

198,917

723,224

513,610

25,574

18,828

23,176359,441

8,807

39,233213,549

3,22565,524

712,955

503,960



40 Balance sheet by origin in CHF m

AssetsCash and other liquid assetsMoney market papersDue from banksReceivables from the insurance businessDue from customers MortgagesSecurities and precious metals trading portfoliosFinancial investments from the banking businessInvestments from the insurance businessNon-consolidated participationsTangible fixed assetsIntangible assetsAccrued income and prepaid expensesOther assets

Total assets

Liabilities and shareholders’ equityMoney market papers issuedDue to banksPayables from the insurance businessDue to customers in savings and investment depositsDue to customers, otherMedium-term notes (cash bonds)Bonds and mortgage-backed bonds Accrued expenses and deferred income Other liabilitiesValuation adjustments and provisionsTechnical provisions for the insurance businessShareholders’ equity (excluding minority interests)Minority interests


Change tonew basis

Outside Switzerland

in %

(41) 9

462947

1565642

) 24(8

) 3138042

) 12

45

) 7) 104

51) (10

19) –

53114

) 18) (2

22) 83

125

52

)

)

)

)

Change tonew basis

Switzerland in %

1(2416956183

6611(133(7–

22(27

9

(69(324

(1113

(1738

(10(18

8(288

1

New basisOutside


57324,782

162,4604,750

74,6347,980

117,65115,12463,6581,3524,0044,6919,472

43,915

535,046

21,564155,504

3,4734,103

130,3990

35,29911,26640,8558,916

62,61614,1361,086

489,217

New basisSwitzerland

31 Dec. 1999

2,5684,2122,4232,402

30,29769,7839,0953,704

54,113437

5,00746

2,3427,547

193,976

55643,3392,882

39,90451,6833,884

11,3703,686

10,3725,303

51,36515,393

68

239,805

OutsideSwitzerland

31 Dec. 2000

33926,924

237,1826,120

109,63320,420

183,80921,46579,2361,2495,238

22,52113,44749,146

776,729

23,001317,390

5,2443,678

155,3340

53,83624,05548,3488,760

76,59525,8642,443

744,548


2,5893,2036,5103,751

35,62472,01215,1084,109

53,396580

4,675778

2,8475,522

210,704

17542,0513,563

35,55558,2153,225

11,6883,9669,3054,347

55,58015,087

128

242,885

96

41 Balance sheet by currencies as of 31 December 2000 in CHF m

AssetsCash and other liquid assetsMoney market papersDue from banksReceivables from the insurance businessDue from customersMortgagesSecurities and precious metals trading portfoliosFinancial investments from the banking businessInvestments from the insurance businessNon-consolidated participationsTangible fixed assetsIntangible assetsAccrued income and prepaid expensesOther assets

Total assets


Liabilities and shareholders’ equityMoney market papers issuedDue to banksPayables from the insurance businessDue to customers in savings and investment depositsDue to customers, otherMedium-term notes (cash bonds)Bonds and mortgage-backed bondsAccrued expenses and deferred incomeOther liabilitiesValuation adjustments and provisionsTechnical provisions for the insurance businessShareholders’ equity (excluding minority interests)Minority interests



Total

2,92830,127

243,6929,871

145,25792,432

198,91725,574

132,6321,8299,913

23,29916,29454,668

987,433

729,022

23,176359,441

8,80739,233

213,5493,225

65,52428,02157,65313,107

132,17540,9512,571

987,433

729,022

Other currencies

5199,929

79,4275,111

24,245476

65,0246,518

75,482276

2,1363,0155,7947,895

285,847

267,402

1,125140,538

5,033162

37,0810

17,3944,3361,5575,180

73,8009,1061,804

297,116

248,085

Swiss francs

2,3533,159

11,4883,751

35,39873,13318,0095,163

53,396570

4,690787

2,8183,816

218,531

200,712

036,8533,563

39,07044,6333,225

12,1204,0607,9704,207

55,58015,060

283

226,624

214,372

US dollars

5617,039

152,7771,009

85,61418,823

115,88413,8933,754

9833,087

19,4977,682

42,957

483,055

260,908

22,051182,050

2111

131,8350

36,01019,62548,1263,7202,795

16,785484

463,693

266,565



42 List of principal participations as of 31 December 2000

Principal fully consolidated participationsCompany(% of equity capital held)

Credit Suisse Group 100 Credit Suisse100 Credit Suisse First Boston100 “Winterthur” Swiss Insurance Company99 Neue Aargauer Bank50 Swisscard AECS AG

100 Bank Leu Ltd.100 1) Bank Hofmann AG

88 Clariden Holding AG100 BGP Banca di Gestione Patrimoniale SA100 Bank Leu (Luxembourg) SA100 Credit Suisse Fides100 Credit Suisse Trust AG100 Credit Suisse Trust Holdings Ltd.100 2) Credit Suisse IT Assets AG100 Fides Information Service100 Credit Suisse Group Finance (Guernsey) Ltd.100 Credit Suisse Group Capital (Guernsey) II Ltd.100 Credit Suisse Group Capital (Guernsey) III Ltd.100 Credit Suisse Group Capital (Guernsey) IV Ltd.100 Credit Suisse Group Finance (U.S.) Inc.100 Credit Suisse First Boston Private Equity100 Merban Equity100 CSFB IGP100 PE Portfolio Investment Holding100 3) Credit Suisse First Boston International Ltd.

88 Savoy100 Wincasa

100 Credit Suisse 94 City Bank

100 Schweizerische Schiffshypothekenbank100 Credit Suisse Immobilien Leasing AG50 Credit Suisse Fleetmanagement94 Innoventure Capital AG

100 WECO Inkasso AG100 Swiss NetPay AG100 ABZ Finanz- und Beteiligungsgesellschaft AG100 Credit Suisse (UK) Ltd.100 Credit Suisse (Guernsey) Ltd.100 Credit Suisse (Gibraltar) Ltd.100 Credit Suisse (Bahamas) Ltd.87 Credit Suisse Hottinguer SA

100 Credit Suisse (Deutschland) Aktiengesellschaft100 Credit Suisse (Italy) S.p.A.100 Credit Suisse Gestion S.G.I.I.C. S.A.100 Credit Suisse Asesoramiento y Servicios. S.A.100 Credit Suisse Investment Consulting (Taiwan) Ltd.100 Credit Suisse Investment Advisory (Hong Kong) Ltd.100 Credit Suisse (Luxembourg) S.A.100 Credit Suisse (Monaco) S.A.M.100 Credit Suisse Securities Ltd.100 Swiss American Corporation93 Swiss American Securities, Inc.

100 Streetline Inc.

1) 33.33% held by Credit Suisse.2) 33.33% held by Winterthur.3) 80% held by Credit Suisse First Boston.

Capital in m

CHF 3,114.7CHF 4,399.7CHF 193.7CHF 273.8CHF 0.1CHF 200.0CHF 30.0CHF 8.1CHF 50.0CHF 25.0CHF 5.0CHF 5.0GBP 2.0CHF 2.4CHF 1.0CHF ~EUR ~GBP ~CHF ~USD 600.0CHF ~CHF ~CHF ~CHF ~USD 682.3CHF 7.5CHF 1.5

CHF 3,114.7CHF 7.5CHF 15.0CHF 3.0CHF 1.0CHF 10.0CHF ~CHF ~CHF 4.0GBP 16.5GBP 4.0GBP 5.0USD 12.0EUR 52.9DEM 20.0ITL 66,017.0EUR 2.4ESP 10.0TWD 30.0HKD 1.0CHF 25.0EUR 9.9GBP 10.0USD 38.9USD 8.3USD 6.0

Domicile

ZurichZurichZurich

WinterthurAarauZurichZurichZurichZurich

LuganoLuxembourg

ZurichZurich

St. Peter PortZurichZurich

St. Peter PortSt. Peter PortSt. Peter PortSt. Peter Port

WilmingtonZugZugZugZug

LondonZurich

Winterthur

ZurichZurichBasleZurichZurichZurichZurichZurich

ZugLondon

St. Peter PortMarina Bay

NassauParis

FrankfurtMilan

MadridMadridTaipei

Hong KongLuxembourgMonte Carlo

LondonNew YorkNew YorkNew York

98

Principal fully consolidated participations Company(% of equity capital held)

100 Credit Suisse First Boston100 1) Credit Suisse First Boston, Inc.100 Credit Suisse First Boston Corp.100 Credit Suisse First Boston Mortgage Capital LLC100 Credit Suisse First Boston Management Corp.100 Banco de Investimentos Credit Suisse First Boston Garantia S.A.100 Credit Suisse First Boston (Bahamas) Ltd.100 Credit Suisse First Boston Canada100 AJP Cayman Ltd.100 Credit Suisse First Boston Aktiengesellschaft100 Credit Suisse First Boston (Moscow) A/O100 Credit Suisse First Boston (Cyprus) Ltd.75 Credit Suisse First Boston (India) Securities Limited

100 Finanz AG Zürich100 Credit Suisse First Boston Investments (Guernsey) Ltd.100 Credit Suisse First Boston Capital (Guernsey) I Ltd.

80 2) Credit Suisse First Boston International Ltd.100 Credit Suisse First Boston (International) Holding AG100 Credit Suisse First Boston International (Guernsey) Ltd.100 Credit Suisse First Boston (Europe) Ltd.100 Credit Suisse First Boston Equities Ltd.100 Credit Suisse First Boston Finance B.V.100 Credit Suisse First Boston Pacific Capital Markets Ltd.100 Credit Suisse First Boston (Cayman) Ltd.100 Credit Suisse First Boston (Hong Kong) Ltd.100 Credit Suisse First Boston NZ Restructuring No. 1 Limited100 Credit Suisse First Boston (Singapore) Ltd.100 Credit Suisse First Boston Singapore Futures Pte.100 Credit Suisse First Boston Australia (Holdings) Ltd.100 Credit Suisse First Boston Australia Securities Ltd.100 Credit Suisse First Boston Australia Limited100 Credit Suisse First Boston (Australia) Equities Ltd.100 Credit Suisse First Boston Securities (Japan) Ltd.100 Credit Suisse First Boston (Latin America) Holdings LLC100 Credit Suisse First Boston Australia (Finance) Ltd.100 Credit Suisse First Boston Finance (Guernsey) Ltd.100 Credit Suisse First Boston New Zealand Investments Ltd.100 Credit Suisse Asset Management (Australia)100 Credit Suisse Asset Management (UK) Holding Limited100 Credit Suisse Asset Management Ltd.100 Credit Suisse Trust & Banking Co. Ltd.100 3) Credit Suisse Asset Management LLC100 Credit Suisse Bond Fund Management Company SA100 Credit Suisse Equity Fund Management Company SA100 Credit Suisse Money Market Fund Management Company SA100 Credit Suisse Portfolio Fund Management Company SA100 Credit Suisse Asset Management Funds100 Credit Suisse Asset Management (Deutschland) GmbH100 Credit Suisse Asset Management SIM S.p.A.100 Credit Suisse Asset Management (France) S.A.100 Credit Suisse Asset Management Holding, Inc.100 GTN Global Properties Holding Ltd.

1) 43% voting held by Credit Suisse Group.2) 20% held by Credit Suisse Group.3) After merger of Credit Suisse Asset Management and Warburg Pincus Asset Management; 30% voting rights held by Credit Suisse Group.

Capital in m

CHF 4,399.7USD 187.0USD 1.0USD ~USD 30.2BRL 164.8USD 16.9CAD 157.3USD 101.2DEM 215.0USD 37.8USD 725.0INR 979.8CHF 15.0USD 300.0USD ~USD 682.3CHF 37.5USD 0.2USD 27.3GBP 15.0NLG ~AUD 10.0USD ~HKD 381.1NZD 10.0SGD 163.7USD 11.1AUD 42.0AUD 29.9AUD 14.0AUD 13.0USD 165.0USD 29.6AUD 10.0USD ~NZD 1.6AUD ~GBP 16.0GBP ~JPY 9,000.0USD ~CHF ~CHF ~CHF ~CHF ~CHF 7.0DEM 5.0ITL 12,000.0FRF 164.8USD ~USD 2.0

Domicile

ZurichNew YorkNew YorkNew YorkNew YorkSão Paulo

NassauToronto

Grand CaymanFrankfurtMoscowLimassolMumbay

ZurichSt. Peter PortSt. Peter Port

LondonZug

St. Peter PortLondonLondon

AmsterdamSydney

Grand CaymanHong KongWellingtonSingaporeSingapore

SydneySydneySydney

MelbourneTokyo

Grand CaymanMelbourne

St. Peter PortWellington

SydneyLondonLondon

TokyoNew York

LuxembourgLuxembourgLuxembourgLuxembourg

ZurichFrankfurt

MilanParis

New YorkLimassol




100 “Winterthur” Swiss Insurance Company

100 Winterthur-Leben100 The Federal67 Winterthur ARAG-Legal Assistance

100 Winterthur International Reinsurance100 Gartenhotel100 Swissline100 Winterthur International Insurance Switzerland100 Xenum Services

100 Winterthur Beteiligungsgesellschaft m.b.H.100 WINCOM Versicherungs-Holding AG70 DBV-Winterthur Gruppe92 Medvantis Holding

100 Winterthur Insurance Health & Accident

100 Winterthur Holding Italia100 Winterthur Assicurazioni100 Winterthur Vita S.p.A.

100 Hispanowin S.A.100 Winterthur Inmuebles 2100 Winterthur Seguros Generales100 Winterthur Inmuebles100 Winterthur Ibérica100 Winterthur Asistencia100 Winterthur Vida Española100 WINVALOR Agencia de Valores87 Winterthur Salud de Seguros

100 Winterthur Pensiones

85 Winterthur-Europe Assurances85 Les Assurés Réunis85 Assar84 Sofimmocentrale60 Touring Assurances60 International Service Call Centre44 Jean Verheyen

100 Winterthur-Europe Vie

100 Winterthur (UK) Holdings100 Churchill Insurance Group100 Churchill Insurance93 Churchill Management

100 National Insurance & Guarantee Group100 Winterthur Life UK Holdings100 Winterthur Life UK100 Colonial UK100 Winterthur International

Capital in m

CHF 193.7

CHF 175.0CHF 10.0CHF 9.0CHF 40.0CHF 2.5CHF 0.5CHF 60.0CHF 1.0

DEM 0.3DEM 102.7DEM 87.2EUR 2.2EUR 0.1

ITL 260,000.0ITL 300,882.2ITL 145,000.0

ESP 16,065.4ESP 9,297.0ESP 8,100.3ESP 9,453.0ESP 4,423.5ESP 662.2ESP 5,819.0ESP 150.0ESP 2,084.9ESP 1,370.0

BEF 1.9BEF 464.0BEF 70.0BEF 1,020.0BEF 1,000.0BEF 3.6BEF 5.0

LUF 350.0

GBP 42.6GBP 82.4GBP 80.0GBP 2.6GBP 88.0GBP ~GBP 26.4GBP 48.0GBP 120.0

Domicile

Winterthur

WinterthurZurich

WinterthurWinterthurWinterthurWallisellenWinterthur

Zurich

WiesbadenWiesbadenWiesbadenWiesbadenWiesbaden

MilanMilanMilan

BarcelonaBarcelonaBarcelonaBarcelonaBarcelonaBarcelonaBarcelonaBarcelonaBarcelonaBarcelona

BrusselsBrusselsBrusselsBrusselsBrusselsBrusselsBrussels

Luxembourg

LondonBromleyBromleyBromleyLondon

BasingstokeBasingstoke

ChathamLondon

100


100 Winterthur Versicherungs-AG100 Winterthur Pensionskassen AG100 Wintisa Management und Consulting AG

100 Europeia Seguros100 Winterthur Pensiones

91 Rhodia Assurance

100 Bánsky a hutní penzijní fond a.s.65 Winterthur pojist’ovna a.s.85 Winterthur penzijní fond a.s.

100 Vseobecne Zdryvotni

65 Winterthur Pénztàrszolgàltato Rt.65 Winterthur Biztósitó Rt.

91 Winterthur a.s.84 Winterthur Zycie70 Winterthur PTE

100 Winterthur U.S. Holdings100 Blue Ridge100 General Casualty100 Republic Financial Services100 Southern Guaranty100 Unigard

100 Winterthur Canada Financial100 The Citadel General100 L’Unique

100 Winterthur Administrações e Participações100 Winterthur Internacional Brasil100 Winterthur International (SA)100 Winterthur International Argentina S.A.100 Winterthur Holdings Australia97 Winterthur Insurance (Far East)

100 Winterthur Swiss Insurance (Asia)52 Winterthur Insurance (Asia)

100 Winterthur Insurance Services60 Winterthur Life Indonesia

100 CS Life Japan91 Winterthur International

100 Winterthur Overseas100 Windsor Parc Ltd.100 Winterthur Capital Ltd.100 Winterthur Swiss Insurance (Macau)100 Winterthur Alternative Investments

Capital in m

ATS 127.5ATS 70.0ATS 1.0

PTE 4,051.6PTE 166.4

FRF 60.0

CZK 50.0CZK 373.0CZK 142.4CZK 29.0

HUF 3,500.0HUF 700.0

PLN 40.0PLN 130.0PLN 221.0

USD ~USD 3.6USD 3.0USD ~USD 2.0USD ~

CAD ~CAD 34.1CAD 7.0

BRL 19.4BRL 11.0ZAR 1.0USD 0.5AUD 10.8SGD 25.0HKD 175.0HKD 176.6HKD 38.8IDR 44,500.0JPY ~USD 2.4USD ~USD 1.0USD ~MOP 20.0USD 100.0

Domicile

ViennaViennaVienna

LisbonLisbon

Lyon

TrinecPrague

BrnoPrague

BudapestBudapest

WarsawWarsawWarsaw

WilmingtonSimsbury

Sun PrairieDallas

MontgomeryBellevue

TorontoTorontoQuebec

São PauloSão Paulo

JohannesburgBuenos Aires

SydneySingapore

Hong KongHong KongHong Kong

JakartaTokyo

Hamilton, BermudaHamilton, BermudaHamilton, BermudaHamilton, Bermuda

MacauCayman



Principal participations as of 31 December 2000 valued according to the equity methodEquity interest

Company

Credit Suisse GroupInreska Ltd.Capital Union

Credit SuisseCornèr Bank SAFinanzfachmarkt AGFinanza Online S.p.A.SECB Swiss Euro Clearing Bank GmbH

Credit Suisse First BostonValcambi SAInnovent Capital Ltd.SECB Swiss Euro Clearing Bank GmbHBanco Comercial SA

“Winterthur” Swiss Insurance CompanyNorwich Winterthur HoldingsNorwich Winterthur Reinsurance CorpExpertisa-ColumnaTechnopark ImmobilienWincare VersicherungenWinterthur Financial ServicesZürcher Freilager AGZentrum RegensdorfAllgemeine Hypothekenbank AGWinterthur Fund Management Co. Winterthur International of Bermuda ServicesHarrington HoldingsWinterthur Research SAWinterthur-Service SAWinterthur International Employee BenefitsWinterthur Servicios FinancierosSeguros Atlas

in %

100.0 25.0

27.3 33.3 20.0 12.5

100.0 13.1 12.5 19.9

48.5 46.5

100.0 25.0

100.0 100.0 36.2 50.0 10.0

100.0 100.0 28.6

100.0 100.0 25.0

100.0 30.0

Capital in m

GBP 3.0USD 50.0

CHF 12.0CHF 9.9EUR 0.2EUR 9.2

CHF 12.0CHF 10.6EUR 9.2UYP 39.8

GBP 54.5GBP 57.8CHF 0.2CHF 40.0CHF 0.1CHF 0.5CHF 4.0CHF 4.5DEM 2.0LUF 5.0USD ~USD 70.0ESP 15.0ESP 25.0ESP 10.0ESP 10.0MXN 50.0

Domicile

St. Peter PortDubai

LuganoZurichVarese

Frankfurt

BalernaGrand Cayman

FrankfurtMontevideo

NorwichNorwich

WinterthurZurich

WinterthurWinterthur

ZurichRegensdorf

FrankfurtLuxembourg

Hamilton, BermudaHamilton, Bermuda

BarcelonaBarcelonaBarcelonaBarcelona

Mexico City

102

43 Foreign currency translation rates in CHF

1 US dollar (USD)1 euro (EURO)1 British pound sterling (GBP)1 Canadian dollar (CAD)1 Singapore dollar (SGD)1 Hong Kong dollar (HKD)

100 German marks (DEM)100 Dutch guilders (NLG)100 French francs (FRF)100 Italian lire (ITL)100 Japanese yen (JPY)100 Spanish pesetas (ESP)

Average rateused in the

income statement

in 1999

1.4900 1.5800 2.4000 1.0000 0.8800 0.1910

81.0000 71.9000 24.1500 0.0820 1.3100 0.9520

Average rateused in the

income statement

in 2000

1.6700 1.5400 2.5300 1.1200 0.9700 0.2140

78.8000 69.9500 23.5000 0.0795 1.5500 0.9260

Year-end rateused in the

balance sheetas of

31 Dec. 1999

1.5979 1.6057 2.5873 1.1006 0.9591 0.2056

82.0980 72.8635 24.4787 0.0829 1.5626 0.9650

Year-end rateused in the

balance sheetas of

31 Dec. 2000

1.6346 1.5242 2.4442 1.0899 0.9437 0.2096

77.9311 69.1652 23.2363 0.0787 1.4252 0.9160

Principal participations as of 31 December 2000 valued at costEquity interest

Company

Credit Suisse GroupWatt AGGSTP Global Straight Through Processing AG

Credit SuisseSwiss Mortgage Bond BankSwiss Steel AG

Credit Suisse First BostonBanco General de NegociosTelekurs Holding AGSwiss Financial Services Group AGSNOC Swiss Nominee CompanyEuro-Clear Clearance System Ltd.Central Banco Investimento SASan Luis Financial and Investment Co. Ltd.North Bay Ltd.SWIFT

in %

20.0 5.7

9.5 30.7

26.4 17.4 20.0 25.0 4.8 5.0

12.8 100.0

1.6

Capital in m

CHF 87.5CHF 139.8

CHF 300.0CHF 137.7

ARS 163.0CHF 45.0CHF 26.0CHF 2.0USD 2.5PTE 1,890.0PAB 0.5USD 8.0EUR 10.8

Domicile

GlarusZurich

ZurichEmmen

Buenos AiresZurichZurichZurich

LondonLisbon

Panama CityNassau

La Hulpe


104


44 Employee equity participation plans

Credit Suisse Group has adopted several equity-based compensation programmesfor employees, which are based on Credit Suisse Group shares and options onCredit Suisse Group shares. The equity participation plans will enable the inter-ests of employees, management and shareholders to be aligned more closely,with the aim of further motivating the Group’s employees and thereby increasingits long-term performance and profitability.

Share option plansThe Group has share option plans under which incentive options may be periodi-cally granted to key employees. The options are granted at an exercise price notless than fair value of the shares at the date of grant, are generally blocked from exercise for four years following the date of grant, and expire generally fromfour to ten years from the date of grant. Additionally, some plans are subject toperformance-based vesting criteria.

In connection with the acquisition of Donaldson, Lufkin & Jenrette, Inc.(DLJ), the Group replaced – as contractually agreed – certain outstandingoptions to purchase shares of DLJ previously granted by DLJ. Specifically, inNovember 2000, the Group granted 6,100,036 options at a weighted-averageexercise price of CHF 144.86 to the holders of the DLJ options. The followingtables and amounts include the effect of these grants.

The Group recognised no compensation expense related to options plans in2000 or 1999.

In January 2001, pursuant to the Group’s 2000 incentive compensation plan, 6,798,242 options were granted at aweighted average exercise price of CHF 338.75.

Share option plans – pro-forma informationGenerally the Group recognises no compensation expense for either the grant or settlement of incentive options. If theGroup had utilised a fair value-based measurement of the awards at the date of grant and recognised compensationexpense over the plans’ respective vesting periods, net profit and earnings per share would have changed to the followingpro-forma amounts for the years ended 31 December:

Pro-forma impact on a fair value-based measurement(in CHF m except the per share amounts)

Net profit As reportedPro-forma

Earnings per share As reportedPro-forma

Earnings per share – diluted As reportedPro-forma

1999

4,2503,92115.6614.4515.5414.35

2000

5,7855,77020.8320.7720.7520.70

Options on Credit Suisse Group sharesOutstanding at the beginning of the yearGranted during the yearExercised during the yearForfeited during the year

Outstanding at the end of the year

Exerciseable at the end of the year

Weighted-averageexercise price 1999 in CHF

163.43231.00

) 132.50) 246.60

181.14

139.83

Number of options

1999

4,297,099605,000

(958,000(10,000

3,934,099

2,525,000

Weighted-averageexercise price

2000 in CHF

181.14158.72

) 121.85) 180.42

180.54

116.74

Number of options

2000

3,934,0996,717,036

(2,476,629(293,717

7,880,789

2,886,903


106

REPORT OF THE GROUP’S AUDITORS

As auditors of the Group, we have audited the consolidated financial statements(income statement, balance sheet, statement of source and application of fundsand notes) of Credit Suisse Group for the year ended 31 December 2000.

These consolidated financial statements are the responsibility of the Board ofDirectors. Our responsibility is to express an opinion on these consolidated finan-cial statements based on our audit. We confirm that we meet the legal require-ments concerning professional qualification and independence.

Our audit was conducted in accordance with auditing standards promulgatedby the Swiss profession and with the International Standards on Auditing issuedby the International Federation of Accountants (IFAC). These standards requirethat an audit be planned and performed to obtain reasonable assurance aboutwhether the consolidated financial statements are free from material misstate-ment. We have examined on a test basis evidence supporting the amounts anddisclosures in the consolidated financial statements. We have also assessedthe accounting principles used, significant estimates made and the overall con-solidated financial statement presentation. We believe that our audit provides areasonable basis for our opinion.

In our opinion, the consolidated financial statements give a true and fair viewof the financial position, the results of operations and the source and applicationof funds based on Swiss Accounting Rules for Banks and Swiss Accounting andReporting Recommendations (ARR) for the Insurance Business of the Group,which are explained in the notes to the consolidated financial statements, andcomply with Swiss law.

We recommend that the consolidated financial statements submitted to yoube approved.

As discussed in the notes to the consolidated financial statements, the Grouphas significantly modified for the financial year 2000 its accounting policies inrelation to insurance specific positions. The prior year has been restated accord-ingly and the effects on shareholders’ equity and net profit are disclosed.

KPMG Klynveld Peat Marwick Goerdeler SA

Brendan R. Nelson Peter HanimannChartered Accountant Certified Accountant

Auditors in Charge

Zurich, 7 March 2001

Report of the Group’s auditorsto the Annual General Meeting of Credit Suisse Group, Zurich

Economy & Finance

credit-suisse Annual Report Part 5 Consolidated financial statements Comments to the financial statements Financial statements Notes to the financial statements Report of the Group's