Form 6-K CREDIT SUISSE AG For: Mar 31 Filed by: CREDIT SUISSE GROUP AG

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April 27, 2022 6:11 AM EDT
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
April 27, 2022
Commission File Number 001-15244
Credit Suisse Group AG
(Translation of registrant’s name into English)
Paradeplatz 8, 8001 Zurich, Switzerland
(Address of principal executive office)
Commission File Number 001-33434
Credit Suisse AG
(Translation of registrant’s name into English)
Paradeplatz 8, 8001 Zurich, Switzerland
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
   Form 20-F      Form 40-F   
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.



Explanatory note
On April 27, 2022, the Credit Suisse Earnings Release 1Q22 was published. A copy of the Earnings Release is attached as an exhibit to this report on Form 6-K. This report on Form 6-K (including the exhibit hereto) is hereby (i) incorporated by reference into the Registration Statement on Form F-3 (file no. 333-238458) and the Registration Statements on Form S-8 (file nos. 333-101259, 333-208152 and 333-217856), and (ii) shall be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended, except, in the case of both (i) and (ii), the information under “Group and Bank differences” and “Selected financial data – Bank” shall not be incorporated by reference into, or be deemed “filed”, with respect to the Registration Statements on Form S-8 (file nos. 333-101259, 333-208152 and 333-217856).
The 1Q22 Credit Suisse Financial Report as of and for the three months ended March 31, 2022 will be published on or about May 5, 2022.
Credit Suisse Group AG and Credit Suisse AG file an annual report on Form 20-F and file quarterly reports, including unaudited interim financial information, and furnish or file other reports on Form 6-K with the US Securities and Exchange Commission (SEC) pursuant to the requirements of the Securities Exchange Act of 1934, as amended. The SEC reports of Credit Suisse Group AG and Credit Suisse AG are available to the public over the internet at the SEC’s website at www.sec.gov. The SEC reports of Credit Suisse Group AG and Credit Suisse AG are also available under “Investor Relations” on Credit Suisse Group AG’s website at www.credit-suisse.com and at the offices of the New York Stock Exchange, 20 Broad Street, New York, NY 10005.
Unless the context otherwise requires, references herein to “Credit Suisse Group,” “Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group AG and its consolidated subsidiaries and the term “the Bank” means Credit Suisse AG, the direct bank subsidiary of the Group, and its consolidated subsidiaries.
SEC regulations require certain information to be included in registration statements relating to securities offerings. Such additional information for the Group and the Bank is included in this report on Form 6-K, which should be read together with the Group’s and the Bank’s annual report on Form 20-F for the year ended December 31, 2021 (Credit Suisse 2021 20-F) filed with the SEC on March 10, 2022, and the Group’s earnings release for the first quarter of 2022 (Credit Suisse Earnings Release 1Q22), filed with the SEC as Exhibit 99.1 hereto.
This report filed on Form 6-K also contains certain information about Credit Suisse AG relating to its results as of and for the three months ended March 31, 2022. Credit Suisse AG, a Swiss bank and joint stock corporation established under Swiss law, is a wholly-owned subsidiary of the Group. Credit Suisse AG’s registered head office is in Zurich, and it has additional executive offices and principal branches in London, New York, Hong Kong, Singapore and Tokyo.
References herein to “CHF” are to Swiss francs.
Forward-looking statements
This Form 6-K and the information incorporated by reference in this Form 6-K include statements that constitute forward-looking statements. In addition, in the future the Group, the Bank and others on their behalf may make statements that constitute forward-looking statements.
When evaluating forward-looking statements, you should carefully consider the cautionary statement regarding forward-looking information, the risk factors and other information set forth in the Credit Suisse 2021 20-F, subsequent annual reports on Form 20-F filed by the Group and the Bank with the SEC, the Group’s and the Bank’s reports on Form 6-K furnished to or filed with the SEC, and other uncertainties and events.
2
Group and Bank differences
The business of the Bank is substantially the same as the business of the Group, and substantially all of the Bank’s operations are conducted through the Wealth Management, Investment Bank, Swiss Bank and Asset Management divisions. Certain Corporate Center activities of the Group, such as hedging activities relating to share-based compensation awards, are not applicable to the Bank. Certain other assets, liabilities and results of operations, primarily relating to Credit Suisse Services AG (our Swiss service company) and its subsidiary, are managed as part of the activities of the Group’s segments. However, they are legally owned by the Group and are not part of the Bank’s consolidated financial statements.
Comparison of consolidated statements of operations
   Bank Group
in 1Q22 1Q21 1Q22 1Q21
Statements of operations (CHF million)  
Net revenues 4,443 7,653 4,412 7,574
Total operating expenses 5,056 4,091 4,950 3,937
Income/(loss) before taxes (503) (837) (428) (757)
Net income/(loss) (330) (289) (277) (231)
Net income/(loss) attributable to shareholders (330) (214) (273) (252)
Comparison of consolidated balance sheets
   Bank Group
end of 1Q22 4Q21 1Q22 4Q21
Balance sheet statistics (CHF million)  
Total assets 743,021 759,214 739,554 755,833
Total liabilities 694,483 711,127 694,878 711,603
Capitalization and indebtedness
   Bank Group
end of 1Q22 4Q21 1Q22 4Q21
Capitalization and indebtedness (CHF million)  
Due to banks 18,889 18,960 18,891 18,965
Customer deposits 399,679 393,841 398,624 392,819
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions 27,806 35,368 27,711 35,274
Long-term debt 154,413 160,695 160,320 166,896
All other liabilities 93,696 102,263 89,332 97,649
Total liabilities  694,483 711,127 694,878 711,603
Total equity 48,538 48,087 44,676 44,230
Total capitalization and indebtedness  743,021 759,214 739,554 755,833
3
BIS capital metrics
   Bank Group
end of 1Q22 4Q21 1Q22 4Q21
Capital and risk-weighted assets (CHF million)  
CET1 capital 43,425 44,185 37,713 38,529
Tier 1 capital 58,009 59,110 53,204 54,373
Total eligible capital 58,481 59,589 53,676 54,852
Risk-weighted assets 272,466 266,934 273,043 267,787
Capital ratios (%)  
CET1 ratio 15.9 16.6 13.8 14.4
Tier 1 ratio 21.3 22.1 19.5 20.3
Total capital ratio 21.5 22.3 19.7 20.5
Selected financial data – Bank
Condensed consolidated statements of operations
in 1Q22 1Q21 % change
Condensed consolidated statements of operations (CHF million)  
Interest and dividend income 2,220 2,574 (14)
Interest expense (755) (931) (19)
Net interest income 1,465 1,643 (11)
Commissions and fees 2,590 3,751 (31)
Trading revenues (55) 1,800 –
Other revenues 443 459 (3)
Net revenues  4,443 7,653 (42)
Provision for credit losses  (110) 4,399 –
Compensation and benefits 2,158 1,975 9
General and administrative expenses 2,555 1,752 46
Commission expenses 298 329 (9)
Restructuring expenses 45 35 29
Total other operating expenses 2,898 2,116 37
Total operating expenses  5,056 4,091 24
Income/(loss) before taxes  (503) (837) (40)
Income tax expense/(benefit) (173) (548) (68)
Net income/(loss)  (330) (289) 14
Net income/(loss) attributable to noncontrolling interests 0 (75) 100
Net income/(loss) attributable to shareholders  (330) (214) 54
4
Selected financial data – Bank (continued)
Condensed consolidated balance sheets
end of 1Q22 4Q21 % change
Assets (CHF million)  
Cash and due from banks 167,177 164,026 2
Interest-bearing deposits with banks 930 1,256 (26)
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions 95,282 103,906 (8)
Securities received as collateral 8,084 15,017 (46)
Trading assets 107,169 111,299 (4)
Investment securities 807 1,003 (20)
Other investments 5,754 5,788 (1)
Net loans 296,485 300,358 (1)
Goodwill 2,895 2,881 0
Other intangible assets 307 276 11
Brokerage receivables 18,361 16,689 10
Other assets 39,770 36,715 8
Total assets  743,021 759,214 (2)
Liabilities and equity (CHF million)  
Due to banks 18,889 18,960 0
Customer deposits 399,679 393,841 1
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions 27,806 35,368 (21)
Obligation to return securities received as collateral 8,084 15,017 (46)
Trading liabilities 28,184 27,539 2
Short-term borrowings 23,041 25,336 (9)
Long-term debt 154,413 160,695 (4)
Brokerage payables 13,690 13,062 5
Other liabilities 20,697 21,309 (3)
Total liabilities  694,483 711,127 (2)
Total shareholder's equity  47,874 47,390 1
Noncontrolling interests 664 697 (5)
Total equity  48,538 48,087 1
Total liabilities and equity  743,021 759,214 (2)
BIS statistics (Basel III)
end of 1Q22 4Q21 % change
Eligible capital (CHF million)  
Common equity tier 1 (CET1) capital 43,425 44,185 7
Tier 1 capital 58,009 59,110 4
Total eligible capital 58,481 59,589 3
Capital ratios (%)  
CET1 ratio 15.9 16.6 –
Tier 1 ratio 21.3 22.1 –
Total capital ratio 21.5 22.3 –
5
Exhibits
No. Description
6
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.
CREDIT SUISSE GROUP AG and CREDIT SUISSE AG
(Registrants)
Date: April 27, 2022
By:
/s/ Thomas Gottstein                                 /s/ David R. Mathers
      Thomas Gottstein                                       David R. Mathers
      Chief Executive Officer                               Chief Financial Officer 
7






Key metrics
   in / end of % change
1Q22 4Q21 1Q21 QoQ YoY
Credit Suisse (CHF million)  
Net revenues 4,412 4,582 7,574 (4) (42)
Provision for credit losses (110) (20) 4,394 450 –
Total operating expenses 4,950 6,266 3,937 (21) 26
Loss before taxes (428) (1,664) (757) (74) (43)
Loss attributable to shareholders (273) (2,085) (252) (87) 8
Cost/income ratio (%) 112.2 136.8 52.0 – –
Effective tax rate (%) 35.3 (25.0) 69.5 – –
Basic loss per share (CHF) (0.10) (0.83) (0.10) (88) 0
Diluted loss per share (CHF) (0.10) (0.83) (0.10) (88) 0
Return on equity (%) (2.4) (18.7) (2.3) – –
Return on tangible equity (%) (2.6) (20.9) (2.6) – –
Assets under management and net new assets (CHF billion)  
Assets under management 1,554.9 1,614.0 1,596.0 (3.7) (2.6)
Net new assets 7.9 1.6 28.4 393.8 (72.2)
Balance sheet statistics (CHF million)  
Total assets 739,554 755,833 865,576 (2) (15)
Net loans 287,682 291,686 304,188 (1) (5)
Total shareholders' equity 44,442 43,954 44,590 1 0
Tangible shareholders' equity 41,204 40,761 39,707 1 4
Basel III regulatory capital and leverage statistics (%)  
CET1 ratio 13.8 14.4 12.2 – –
CET1 leverage ratio 4.3 4.3 3.8 – –
Tier 1 leverage ratio 6.1 6.1 5.4 – –
Share information  
Shares outstanding (million) 2,556.1 2,569.7 2,364.0 (1) 8
   of which common shares issued  2,650.7 2,650.7 2,447.7 0 8
   of which treasury shares  (94.6) (81.0) (83.7) 17 13
Book value per share (CHF) 17.39 17.10 18.86 2 (8)
Tangible book value per share (CHF) 16.12 15.86 16.80 2 (4)
Market capitalization (CHF million) 19,272 23,295 24,009 (17) (20)
Number of employees (full-time equivalents)  
Number of employees 51,030 50,390 49,520 1 3
See relevant tables for additional information on these metrics.
2
Credit Suisse
In 1Q22, we recorded a net loss attributable to shareholders of CHF 273 million. Return on equity and return on tangible equity were (2.4)% and (2.6)%, respectively. As of the end of 1Q22, our CET1 ratio was 13.8%.
Results
   in / end of % change
1Q22 4Q21 1Q21 QoQ YoY
Statements of operations (CHF million)  
Net interest income 1,459 1,318 1,654 11 (12)
Commissions and fees 2,601 3,021 3,737 (14) (30)
Trading revenues 1 (36) (151) 1,811 (76) –
Other revenues 388 394 372 (2) 4
Net revenues  4,412 4,582 7,574 (4) (42)
Provision for credit losses  (110) (20) 4,394 450 –
Compensation and benefits 2,458 2,145 2,207 15 11
General and administrative expenses 2,148 2,182 1,376 (2) 56
Commission expenses 298 283 329 5 (9)
Goodwill impairment 0 1,623 0 (100) –
Restructuring expenses 46 33 25 39 84
Total other operating expenses 2,492 4,121 1,730 (40) 44
Total operating expenses  4,950 6,266 3,937 (21) 26
Loss before taxes  (428) (1,664) (757) (74) (43)
Income tax expense/(benefit) (151) 416 (526) – (71)
Net loss  (277) (2,080) (231) (87) 20
Net income/(loss) attributable to noncontrolling interests (4) 5 21 – –
Net income/(loss) attributable to shareholders  (273) (2,085) (252) (87) 8
Economic profit (CHF million) (1,326) (2,215) (1,523) (40) (13)
Statement of operations metrics  
Cost/income ratio (%) 112.2 136.8 52.0 – –
Effective tax rate (%) 35.3 (25.0) 69.5 – –
Earnings per share (CHF)  
Basic earnings/(loss) per share (0.10) (0.83) (0.10) (88) 0
Diluted earnings/(loss) per share (0.10) (0.83) (0.10) (88) 0
Return on equity (%, annualized)  
Return on equity (2.4) (18.7) (2.3) – –
Return on tangible equity (2.6) (20.9) (2.6) – –
Book value per share (CHF)  
Book value per share 17.39 17.10 18.86 2 (8)
Tangible book value per share 16.12 15.86 16.80 2 (4)
Balance sheet statistics (CHF million)  
Total assets 739,554 755,833 865,576 (2) (15)
Risk-weighted assets 273,043 267,787 302,869 2 (10)
Leverage exposure 878,023 889,137 981,979 (1) (11)
Number of employees (full-time equivalents)  
Number of employees 51,030 50,390 49,520 1 3
1
Represent revenues on a product basis which are not representative of business results within our business segments as segment results utilize financial instruments across various
product types.
3
Effective January 1, 2022, the Group was organized into four divisions – Wealth Management, Investment Bank, Swiss Bank and Asset Management – and four geographic regions – Switzerland, Europe, Middle East and Africa (EMEA), Asia Pacific and Americas, reflecting the strategic announcement made on November 4, 2021.
Results summary
1Q22 results
In 1Q22, Credit Suisse reported a net loss attributable to shareholders of CHF 273 million compared to a loss of CHF 252 million in 1Q21 and a loss of CHF 2,085 million in 4Q21. In 1Q22, Credit Suisse reported a loss before taxes of CHF 428 million, compared to loss of CHF 757 million in 1Q21 and a loss of CHF 1,664 million in 4Q21. Adjusted income before taxes in 1Q22 was CHF 300 million compared to CHF 3,596 million in 1Q21 and CHF 328 million in 4Q21.
Results details
Net revenues
In 1Q22, we reported net revenues of CHF 4,412 million, which decreased 42% compared to 1Q21, primarily reflecting lower net revenues in the Investment Bank, Wealth Management and the Corporate Center. The decrease in the Investment Bank was driven by lower sales and trading revenues, which included the impact of resizing its prime services franchise and also included Russia-related trading and fair value losses in its Global Trading Solutions (GTS) franchise, and reduced capital markets revenues. The decrease in Wealth Management reflected lower revenues across all revenue categories, including a loss on the equity investment in Allfunds Group of CHF 353 million. 1Q22 included negative net revenues of CHF 173 million in the Corporate Center. Adjusted net revenues in 1Q22 were CHF 4,582 million, a decrease of 38% compared to CHF 7,430 million in 1Q21.
Compared to 4Q21, net revenues decreased 4%, primarily reflecting lower net revenues in Wealth Management, the Corporate Center and the Swiss Bank, partially offset by higher net revenues in the Investment Bank. The decrease in Wealth Management mainly reflected lower other revenues, including the loss on the equity investment in Allfunds Group, partially offset by higher transaction- and performance-based revenues. The decrease in the Swiss Bank was mainly driven by lower other revenues. The increase in the Investment Bank reflected higher sales and trading revenues due to a seasonal increase in client activity and increased volatility, partially offset by reduced capital markets and advisory revenues. Adjusted net revenues increased 5% compared to CHF 4,384 million in 4Q21.
Provision for credit losses
In 1Q22, the release of provision for credit losses of CHF 110 million was mainly due to a release of CHF 156 million in the Investment Bank, partially offset by provision for credit losses of CHF 24 million in Wealth Management and CHF 23 million in the Swiss Bank. 1Q22 included a release of provision for credit losses of CHF 155 million in the Investment Bank pertaining to an assessment of the future recoverability of receivables related to Archegos Capital Management (Archegos).
Total operating expenses
Compared to 1Q21, total operating expenses of CHF 4,950 million increased 26%, mainly reflecting higher general and administrative expenses and higher compensation and benefits. General and administrative expenses increased 56%, primarily reflecting higher litigation provisions. Compensation and benefits increased 11%, mainly due to higher discretionary compensation expenses. Adjusted total operating expenses in 1Q22 were CHF 4,237 million, an increase of 9% compared to CHF 3,870 million in 1Q21.
Compared to 4Q21, total operating expenses decreased 21%, mainly reflecting a goodwill impairment of CHF 1,623 million in 4Q21. Total operating expenses also reflected a 2% decrease in general and administrative expenses, primarily due to lower professional services fees, partially offset by a 15% increase in compensation and benefits, mainly due to higher discretionary compensation expenses. Adjusted total operating expenses increased 4% compared to CHF 4,071 million in 4Q21.
4
Litigation
The Group recorded net litigation provisions of CHF 703 million in 1Q22, primarily relating to developments in a number of previously disclosed legal matters, primarily in the Corporate Center and Wealth Management. The Group’s estimate of the aggregate range of reasonably possible losses that are not covered by existing provisions for certain proceedings for which the Group believes an estimate is possible was zero to CHF 1.4 billion as of the end of 1Q22.
Income tax
In 1Q22, the income tax benefit of CHF 151 million, resulting in an effective tax rate of 35.3% for the quarter, mainly reflected the estimated effective tax rate for the full year, as applied to the 1Q22 results. The main drivers of the full year estimated effective tax rate were the impact of the geographical mix of results, valuation allowances relating to current year earnings and the non-deductible funding costs. Additionally, the 1Q22 tax benefit was negatively impacted by non-deductible provisions relating to a previously disclosed legal matter and a tax rate change in the UK, partially offset by the impact of the release of previously unrecognized tax benefits. Overall, net deferred tax assets increased CHF 306 million to CHF 3,259 million during 1Q22.
Regulatory capital
As of the end of 1Q22, our Bank for International Settlements (BIS) common equity tier 1 (CET1) ratio was 13.8% and our risk-weighted assets (RWA) were CHF 273.0 billion.
> Refer to “Additional financial metrics” for further information on regulatory capital.
Other information
AGM proposals
On March 30, 2022, Credit Suisse announced its agenda for the 2022 Annual General Meeting (AGM) of Shareholders, which included the following topics:
■ Discharge of members of the Board of Directors (Board) and the Executive Board: The Board proposes that the members of the Board and the Executive Board be granted discharge for the 2020 and 2021 financial years, excluding all issues related to the supply chain finance funds (SCFF) matter;
■ Creation of authorized capital: The Board proposes to reintroduce authorized share capital amounting to a maximum of CHF 5 million (equivalent to 125,000,000 registered shares) in order to preserve strategic and financial flexibility, including for a further development of business activities, and to ensure a sufficient reserve of authorized capital, in line with regulatory expectations; and
■ Board of Directors: The Board proposes Axel P. Lehmann for election as Chairman of the Board and Mirko Bianchi, Keyu Jin and Amanda Norton for election as non-executive Board members. Severin Schwan, Kai S. Nargolwala and Juan Colombas will not stand for re-election. All other members of the Board will stand for re-election for a further term of office of one year.
Russia’s invasion of Ukraine
In late February 2022, the Russian government launched a military attack on Ukraine. In response to Russia’s military attack, the US, EU, UK, Switzerland and other countries across the world imposed severe sanctions against Russia’s financial system and on Russian government officials and Russian business leaders. Sanctions beginning in February 2022 included limitations on the ability of certain Russian banks to access the SWIFT financial messaging service, restrictions on transactions with the Russian central bank, prohibitions on new investments in Russia, sanctions on Russian financial institutions, sanctions on critical major state-owned enterprises, sanctions on certain Russian government officials and their family members, sanctions on business elites, capital markets-related restrictions and deposit-related limitations. With regard to our exposure to the impact of Russia’s invasion of Ukraine, our 1Q22 results were adversely affected by an aggregate amount of CHF 206 million of negative revenues, provisions for credit losses and trading losses. The Group continues to assess the impact of the sanctions already imposed, and potential future escalations, on its exposures and client relationships. As of March 31, 2022, the Group had a net credit exposure to Russia, after specific allowances and provisions for credit losses and valuation adjustments, of CHF 373 million, primarily to financial institutions. In addition, Russian subsidiaries had a net asset value of approximately CHF 0.2 billion as of March 31, 2022. As of March 31, 2022, we had minimal total credit exposures towards specifically sanctioned individuals managed by our Wealth Management division. The Group is currently monitoring settlement risk on certain open transactions with Russian counterparties; market closures, the imposition of exchange controls, sanctions or other factors may limit the Group’s ability to settle existing transactions or realize on collateral, which could result in unexpected increases in exposures. The Group notes that these recent developments may continue to affect its financial performance, including credit loss estimates and potential asset impairments.
Strategic Regulatory Remediation Committee
In April 2022, Credit Suisse established the Strategic Regulatory Remediation Committee (SRRC) at the Executive Board level, chaired by the Chief Risk Officer. The SRRC will oversee the strategic regulatory remediation of Credit Suisse, which is intended to strengthen our organization and deliver on our regulatory programs.
5
Supply chain finance funds matter
As previously reported, in early March 2021, the boards of four supply chain finance funds managed by certain Group subsidiaries decided to suspend redemptions and subscriptions of those funds to protect the interests of the funds’ investors, to terminate the SCFF and to proceed to their liquidation. Credit Suisse Asset Management (Schweiz) AG acts as the portfolio manager of the SCFF.
In March 2022, Credit Suisse received a proposal from Ethos Foundation and other shareholders requesting information and that a special audit be conducted in connection with the SCFF and “Suisse Secrets” matters. The Board responded to the request for information with answers, which were made publicly available on the Credit Suisse website. The answers included, among other things, details related to SCFF on the insurance coverage applied to the various funds, the amounts paid out by funds and the ongoing efforts to recover additional amounts through insurance claims and litigation, including a statement that it is expected that litigation will be necessary to enforce claims against individual debtors and the insurance companies, which may take around five years. The answers also included information on the “Suisse Secrets” matter.
Beginning in 4Q21, we introduced a fee waiver program for clients impacted by this matter wherein certain commissions and fees arising from current and future business transactions may be reimbursed on a quarterly basis, provided certain conditions are met. We incurred negative revenues of CHF 29 million in 1Q22 relating to this fee waiver program, primarily in Wealth Management.
Significant negative consequences of the supply chain finance funds and Archegos matters
There can be no assurance that any additional losses, damages, costs and expenses, as well as any further regulatory and other investigations and actions or any further downgrade of our credit ratings, will not be material to us, including from any impact on our business, financial condition, results of operations, prospects, liquidity or capital position.
> Refer to “Risk factors” in I – Information on the company and “Note 40 - Litigation” in VI – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2021 for further information on risks that may arise in relation to these matters and for a description of the regulatory and legal developments relating to these matters.
Share buyback
On December 30, 2021, we completed the 2021 share buyback program. Shares repurchased in 2021 were originally expected to be cancelled by means of a capital reduction at the 2022 AGM. The Board decided to retain the shares but may propose their cancellation at a later AGM.
Performance measures
Credit Suisse measures firm-wide returns against total shareholders’ equity and tangible shareholders’ equity, a non-GAAP financial measure also known as tangible book value. Tangible shareholders' equity is calculated by deducting goodwill and other intangible assets from total shareholders' equity as presented in our balance sheet. In addition, Credit Suisse also measures the efficiency of the firm and its divisions with regard to the usage of regulatory capital. Regulatory capital is calculated as the average of 13.5% of RWA and 4.25% of leverage exposure and return on regulatory capital, a non-GAAP financial measure, is calculated using income/(loss) after tax and assumes a tax rate of 30% for periods prior to 2020 and 25% from 2020 onward. For the Investment Bank, return on regulatory capital is based on US dollar denominated numbers. Return on regulatory capital excluding certain items included in our reported results is calculated using results excluding such items, applying the same methodology. Adjusted return on regulatory capital excluding certain items included in our reported results is calculated using results excluding such items, applying the same methodology.
The Group’s economic profit is a non-GAAP financial measure, calculated using income/(loss) before tax applying a 25% tax rate less a capital charge. The capital charge is calculated based on the sum of (i) a cost of capital applied to the average regulatory capital of each of the four divisions; and (ii) a 10% cost of capital applied to the residual of the Group’s average tangible equity less the sum of the regulatory capital of the four divisions. The applied cost of capital for the divisions is 8% for Wealth Management, the Swiss Bank and Asset Management and 12% for the Investment Bank. Adjusted economic profit excluding certain items included in our reported results is calculated using results excluding such items, applying the same methodology.
Management believes that these metrics are meaningful as they are measures used and relied upon by industry analysts and investors to assess valuations and capital adequacy.
6
Results overview 

in / end of		 Wealth
Management		 Investment
Bank		 Swiss
Bank		 Asset
Management		 Corporate
Center		 Credit
Suisse
1Q22 (CHF million)  
Net revenues  1,177 1,938 1,109 361 (173) 4,412
Provision for credit losses  24 (156) 23 0 (1) (110)
Compensation and benefits 749 1,098 391 165 55 2,458
Total other operating expenses 761 872 224 143 492 2,492
   of which general and administrative expenses  662 693 193 114 486 2,148
   of which restructuring expenses  10 36 1 0 (1) 46
Total operating expenses  1,510 1,970 615 308 547 4,950
Income/(loss) before taxes  (357) 124 471 53 (719) (428)
Economic profit (CHF million) (448) (297) 154 28 – (1,326)
Cost/income ratio (%) 128.3 101.7 55.5 85.3 – 112.2
Total assets 204,256 253,958 222,152 3,659 55,529 739,554
Goodwill 1,328 0 489 1,114 0 2,931
Risk-weighted assets 60,226 85,464 70,466 8,107 48,780 273,043
Leverage exposure 233,460 335,763 247,624 2,792 58,384 878,023
4Q21 (CHF million)  
Net revenues  1,377 1,666 1,209 399 (69) 4,582
Provision for credit losses  (7) (7) (4) (2) 0 (20)
Compensation and benefits 700 953 331 156 5 2,145
Total other operating expenses 527 2,708 275 152 459 4,121
   of which general and administrative expenses  435 941 240 120 446 2,182
   of which goodwill impairment  0 1,623 0 0 0 1,623
   of which restructuring expenses  7 25 1 0 0 33
Total operating expenses  1,227 3,661 606 308 464 6,266
Income/(loss) before taxes  157 (1,988) 607 93 (533) (1,664)
Economic profit (CHF million) (68) (1,897) 256 57 – (2,215)
Cost/income ratio (%) 89.1 219.7 50.1 77.2 – 136.8
Total assets 201,326 274,112 221,478 3,603 55,314 755,833
Goodwill 1,323 0 487 1,107 0 2,917
Risk-weighted assets 59,974 84,313 68,764 8,446 46,290 267,787
Leverage exposure 233,228 347,774 247,509 2,737 57,889 889,137
1Q21 (CHF million)  
Net revenues  2,085 3,884 1,031 400 174 7,574
Provision for credit losses  13 4,365 26 0 (10) 4,394
Compensation and benefits 664 975 378 155 35 2,207
Total other operating expenses 430 854 215 114 117 1,730
   of which general and administrative expenses  335 673 180 86 102 1,376
   of which restructuring expenses  3 17 7 1 (3) 25
Total operating expenses  1,094 1,829 593 269 152 3,937
Income/(loss) before taxes  978 (2,310) 412 131 32 (757)
Economic profit (CHF million) 544 (2,194) 105 84 – (1,523)
Cost/income ratio (%) 52.5 47.1 57.5 67.3 – 52.0
Total assets 217,775 356,359 229,782 4,163 57,497 865,576
Goodwill 1,351 1,658 496 1,139 0 4,644
Risk-weighted assets 68,130 109,654 73,361 9,797 41,927 302,869
Leverage exposure 245,191 417,826 253,833 3,380 61,749 981,979
7
Reconciliation of adjustment items
Results excluding certain items included in our reported results are non-GAAP financial measures. Following the reorganization implemented at the beginning of 2022, we have amended the presentation of our adjusted results. Management believes that such results provide a useful presentation of our operating results for purposes of assessing our Group and divisional performance consistently over time, on a basis that excludes items that management does not consider representative of our underlying performance. Provided below is a reconciliation of our adjusted results to the most directly comparable US GAAP measures.

in		 Wealth
Management		 Investment
Bank		 Swiss
Bank		 Asset
Management		 Corporate
Center		 Credit
Suisse
1Q22 (CHF million)  
Net revenues  1,177 1,938 1,109 361 (173) 4,412
   Real estate (gains)/losses  (25) (53) (84) (2) 0 (164)
   (Gains)/losses on business sales  3 0 0 0 0 3
   (Gain)/loss on equity investment in Allfunds Group  353 0 0 0 0 353
   (Gain)/loss on equity investment in SIX Group AG  (2) 0 (3) 0 0 (5)
   Archegos  0 (17) 0 0 0 (17)
Adjusted net revenues  1,506 1,868 1,022 359 (173) 4,582
Provision for credit losses  24 (156) 23 0 (1) (110)
   Archegos  0 155 0 0 0 155
Adjusted provision for credit losses  24 (1) 23 0 (1) 45
Total operating expenses  1,510 1,970 615 308 547 4,950
   Restructuring expenses  (10) (36) (1) 0 1 (46)
   Major litigation provisions  (230) 0 0 0 (423) (653)
   Expenses related to real estate disposals  0 (3) 0 0 0 (3)
   Archegos  0 (11) 0 0 0 (11)
Adjusted total operating expenses  1,270 1,920 614 308 125 4,237
Income/(loss) before taxes  (357) 124 471 53 (719) (428)
Adjusted income/(loss) before taxes  212 (51) 385 51 (297) 300
Adjusted economic profit (21) (428) 90 27 – (786)
Adjusted return on tangible equity (%) – – – – – 4.3
8
Reconciliation of adjustment items (continued)

in		 Wealth
Management		 Investment
Bank		 Swiss
Bank		 Asset
Management		 Corporate
Center		 Credit
Suisse
4Q21 (CHF million)  
Net revenues  1,377 1,666 1,209 399 (69) 4,582
   Real estate (gains)/losses  (19) 0 (205) 0 0 (224)
   (Gains)/losses on business sales  (17) 0 0 0 4 (13)
   (Gain)/loss on equity investment in Allfunds Group  (31) 0 0 0 0 (31)
   (Gain)/loss on equity investment in SIX Group AG  35 0 35 0 0 70
Adjusted net revenues  1,345 1,666 1,039 399 (65) 4,384
Provision for credit losses  (7) (7) (4) (2) 0 (20)
   Archegos  0 5 0 0 0 5
Adjusted provision for credit losses  (7) (2) (4) (2) 0 (15)
Total operating expenses  1,227 3,661 606 308 464 6,266
   Goodwill impairment  0 (1,623) 0 0 0 (1,623)
   Restructuring expenses  (7) (25) (1) 0 0 (33)
   Major litigation provisions  (3) (149) 0 0 (362) (514)
   Expenses related to real estate disposals  (3) (8) 0 0 0 (11)
   Archegos  0 (19) 0 0 5 (14)
Adjusted total operating expenses  1,214 1,837 605 308 107 4,071
Income/(loss) before taxes  157 (1,988) 607 93 (533) (1,664)
Adjusted income/(loss) before taxes  138 (169) 438 93 (172) 328
Adjusted economic profit (82) (533) 129 57 – (842)
Adjusted return on tangible equity (%) – – – – – (1.0)
1Q21 (CHF million)  
Net revenues  2,085 3,884 1,031 400 174 7,574
   (Gain)/loss on equity investment in Allfunds Group  (144) 0 0 0 0 (144)
Adjusted net revenues  1,941 3,884 1,031 400 174 7,430
Provision for credit losses  13 4,365 26 0 (10) 4,394
   Archegos  0 (4,430) 0 0 0 (4,430)
Adjusted provision for credit losses  13 (65) 26 0 (10) (36)
Total operating expenses  1,094 1,829 593 269 152 3,937
   Restructuring expenses  (3) (17) (7) (1) 3 (25)
   Major litigation provisions  11 0 0 0 (15) (4)
   Expenses related to real estate disposals  (4) (33) 0 (1) 0 (38)
Adjusted total operating expenses  1,098 1,779 586 267 140 3,870
Income/(loss) before taxes  978 (2,310) 412 131 32 (757)
Adjusted income before taxes  830 2,170 419 133 44 3,596
Adjusted economic profit 433 1,165 111 86 – 1,726
Adjusted return on tangible equity (%) – – – – – 34.4
9
Results by region
   in / end of % change
1Q22 4Q21 1Q21 QoQ YoY
Switzerland region (CHF billion)  
Net revenues 1.6 1.6 1.6 0 0
   Adjustments  (0.1) (0.1) 0.0 0 –
Adjusted net revenues  1.5 1.5 1.6 0 (6)
Total operating expenses 1.0 0.9 0.9 11 11
   Adjustments  0.0 0.0 0.0 – –
Adjusted total operating expenses  1.0 0.9 0.9 11 11
Income/(loss) before taxes 0.6 0.7 0.6 (14) 0
   Adjustments 1 (0.1) (0.2) 0.0 (50) –
Adjusted income/(loss) before taxes  0.5 0.5 0.6 0 (17)
EMEA (CHF billion)  
Net revenues 0.6 1.0 1.5 (40) (60)
   Adjustments  0.4 (0.1) (0.2) – –
Adjusted net revenues  1.0 0.9 1.3 11 (23)
Total operating expenses 1.4 1.1 1.0 27 40
   Adjustments  (0.3) 0.0 (0.1) – 200
Adjusted total operating expenses  1.1 1.1 0.9 0 22
Income/(loss) before taxes (0.7) (0.1) 0.5 – –
   Adjustments 2 0.6 0.0 (0.1) – –
Adjusted income/(loss) before taxes  (0.1) (0.1) 0.4 0 –
Asia Pacific (CHF billion)  
Net revenues 0.7 0.8 1.4 (13) (50)
   Adjustments  0.0 0.0 0.0 – –
Adjusted net revenues  0.7 0.8 1.4 (13) (50)
Total operating expenses 0.8 0.8 0.7 0 14
   Adjustments  0.0 (0.1) 0.0 100 –
Adjusted total operating expenses  0.8 0.7 0.7 14 14
Income/(loss) before taxes (0.1) 0.0 0.7 – –
   Adjustments 3 0.0 0.1 0.0 (100) –
Adjusted income/(loss) before taxes  (0.1) 0.1 0.7 – –
Americas (CHF billion)  
Net revenues 1.6 1.3 2.9 23 (45)
   Adjustments  (0.1) 0.0 0.0 – –
Adjusted net revenues  1.5 1.3 2.9 15 (48)
Provision for credit losses (0.2) 0.0 4.3 – –
   Adjustments  0.2 0.0 (4.4) – –
Adjusted provision for credit losses  0.0 0.0 (0.1) – 100
Total operating expenses 1.2 3.0 1.2 (60) 0
   Adjustments  0.0 (1.7) 0.0 100 –
Adjusted total operating expenses  1.2 1.3 1.2 (8) 0
Income/(loss) before taxes 0.5 (1.7) (2.6) – –
   Adjustments 4 (0.2) 1.7 4.4 – –
Adjusted income/(loss) before taxes  0.3 0.0 1.8 – (83)
Rounding differences may occur. Does not include the results of the Corporate Center. A significant portion of our business requires inter-regional coordination in order to facilitate the needs of our clients. The methodology for allocating our results by region is dependent on management judgment. For Wealth Management, results are allocated based on the management reporting structure of our relationship manager organization. For the Investment Bank, trading results are allocated based on where the risk is primarily managed, while also reflecting certain revenue transfers to regions where the relevant sales teams and clients are domiciled. For Swiss Bank, results are all generated within Switzerland. For Asset Management, results are allocated based on where the product or fund is primarily managed. Operating expenses for the Investment Bank and Asset Management follow the above assumptions, while direct non-compensation and corporate function expenses are allocated to the regions applying relative base salaries as a proxy. Regional results reflect the same adjustments as shown in our divisional results, some of which may be too small to be reflected in the above table, which is presented in CHF billions.
1
Includes real estate gains of CHF 0.1 billion in 1Q22 and CHF 0.2 billion in 4Q21.
2
Includes a loss on the equity investment in Allfunds Group of CHF 0.4 billion and major litigation provision of CHF 0.2 billion in 1Q22 and a gain on the equity investment in Allfunds Group of CHF 0.1 billion in 1Q21.
3
Includes a goodwill impairment of CHF 0.1 billion in 4Q21.
4
Includes a release of a provision of credit losses of CHF 0.2 billion related to Archegos in 1Q22, a goodwill impairment of CHF 1.5 billion and major litigation provisions of CHF 0.1 billion in 4Q21 and a provision for credit losses of CHF 4.4 billion related to Archegos in 1Q21.
10
Wealth Management
In 1Q22, we reported a loss before taxes of CHF 357 million compared to income before taxes of CHF 978 million in 1Q21 and CHF 157 million in 4Q21. Net revenues of CHF 1,177 million decreased 44% compared to 1Q21, primarily reflecting the impact from our equity investment in Allfunds Group and lower transaction-based revenues.
Results summary
1Q22 results
In 1Q22, we reported a loss before taxes of CHF 357 million, a decrease of CHF 1,335 million compared to 1Q21. Net revenues of CHF 1,177 million decreased 44%, reflecting lower revenues across all revenue categories. Other revenues in 1Q22 included a loss on the equity investment in Allfunds Group of CHF 353 million. Other revenues in 1Q21 included a gain on the equity investment in Allfunds Group of CHF 144 million. We recorded provision for credit losses of CHF 24 million compared to provision for credit losses of CHF 13 million in 1Q21. Total operating expenses of CHF 1,510 million increased 38%, mainly driven by higher litigation provisions and higher compensation and benefits.
Compared to 4Q21, income before taxes decreased CHF 514 million. Net revenues decreased 15%, mainly reflecting lower other revenues, partially offset by higher transaction- and performance-based revenues. Other revenues in 1Q22 included the loss on the equity investment in Allfunds Group. Other revenues in 4Q21 included a gain on the equity investment in Allfunds Group, a gain on the sale of real estate and gains on the sale of businesses, partially offset by a loss on the equity investment in SIX Swiss Exchange (SIX). We recorded provision for credit losses of CHF 24 million compared to a release of provision for credit losses of CHF 7 million in 4Q21. Total operating expenses increased 23%, mainly reflecting higher litigation provisions and higher compensation and benefits.
Capital and leverage metrics
As of the end of 1Q22, we reported RWA of CHF 60.2 billion, an increase of CHF 0.3 billion compared to the end of 4Q21, mainly related to the foreign exchange impact, largely offset by movements in risk levels, primarily in credit risk. Leverage exposure of CHF 233.5 billion was CHF 0.2 billion higher compared to the end of 4Q21, mainly reflecting an increase in high-quality liquid assets (HQLA), largely offset by lower business usage.
Divisional results
   in / end of % change
1Q22 4Q21 1Q21 QoQ YoY
Statements of operations (CHF million)  
Net revenues  1,177 1,377 2,085 (15) (44)
Provision for credit losses  24 (7) 13 – 85
Compensation and benefits 749 700 664 7 13
General and administrative expenses 662 435 335 52 98
Commission expenses 89 85 92 5 (3)
Restructuring expenses 10 7 3 – –
Total other operating expenses 761 527 430 44 77
Total operating expenses  1,510 1,227 1,094 23 38
Income/(loss) before taxes  (357) 157 978 – –
Economic profit (CHF million) (448) (68) 544 – –
Statement of operations metrics  
Return on regulatory capital (%) (11.9) 5.1 31.0 – –
Cost/income ratio (%) 128.3 89.1 52.5 – –
11
Divisional results (continued)
   in / end of % change
1Q22 4Q21 1Q21 QoQ YoY
Net revenue detail (CHF million)  
Net interest income 514 502 561 2 (8)
Recurring commissions and fees 420 432 444 (3) (5)
Transaction- and performance-based revenues 578 413 938 40 (38)
Other revenues (335) 30 142 – –
Net revenues  1,177 1,377 2,085 (15) (44)
Balance sheet statistics (CHF million)  
Total assets 204,256 201,326 217,775 1 (6)
Risk-weighted assets 60,226 59,974 68,130 0 (12)
Leverage exposure 233,460 233,228 245,191 0 (5)
Client business volume (CHF billion)  
Client assets 1 942.7 995.7 1,029.0 (5) (8)
Net loans 97.1 103.0 113.5 (6) (14)
Client business volume 1,039.8 1,098.7 1,142.5 (5) (9)
Margins on assets under management (annualized) (bp)  
Gross margin 2 65 73 114 – –
Net margin 3 (20) 8 54 – –
Number of relationship managers  
Number of relationship managers 1,940 1,890 1,900 3 2
Net interest income includes a term spread credit on stable deposit funding and a term spread charge on loans. Recurring commissions and fees includes investment product management, discretionary mandate and other asset management-related fees, fees for general banking products and services and revenues from wealth structuring solutions. Transaction- and performance-based revenues arise primarily from brokerage and product issuing fees, fees from foreign exchange client transactions, trading and sales income, equity participations income and other transaction- and performance-based income.
1
Client assets is a broader measure than assets under management as it includes transactional accounts and assets under custody (assets held solely for transaction-related or safekeeping/custody purposes) and assets of corporate clients and public institutions used primarily for cash management or transaction-related purposes.
2
Net revenues divided by average assets under management.
3
Income before taxes divided by average assets under management.
Reconciliation of adjustment items
   Wealth Management
in 1Q22 4Q21 1Q21
Results (CHF million)  
Net revenues  1,177 1,377 2,085
   Real estate (gains)/losses  (25) 1 (19) 0
   (Gains)/losses on business sales  3 (17) 0
   (Gain)/loss on equity investment in Allfunds Group  353 (31) (144)
   (Gain)/loss on equity investment in SIX Group AG  (2) 35 0
Adjusted net revenues  1,506 1,345 1,941
Provision for credit losses  24 (7) 13
Total operating expenses  1,510 1,227 1,094
   Restructuring expenses  (10) (7) (3)
   Major litigation provisions  (230) (3) 11
   Expenses related to real estate disposals  0 (3) (4)
Adjusted total operating expenses  1,270 1,214 1,098
Income/(loss) before taxes  (357) 157 978
Adjusted income before taxes  212 138 830
Adjusted economic profit (21) (82) 433
Adjusted return on regulatory capital (%) 7.1 4.5 26.3
Adjusted results are non-GAAP financial measures. Refer to “Reconciliation of adjustment items” in Credit Suisse for further information.
1
Of which CHF 20 million is reflected in other revenues and CHF 5 million is reflected in transaction- and performance-based revenues.
12
Results details
Net revenues
Compared to 1Q21, net revenues of CHF 1,177 million decreased 44%, reflecting lower revenues across all revenue categories. Other revenues in 1Q22 included the loss on the equity investment in Allfunds Group of CHF 353 million, partially offset by gains on the sale of real estate of CHF 20 million. Other revenues in 1Q21 included a gain on the equity investment in Allfunds Group of CHF 144 million. Transaction- and performance-based revenues of CHF 578 million decreased 38%, mainly driven by lower revenues from GTS, lower brokerage and product issuing fees, including lower structured product issuances, and lower corporate advisory fees from integrated solutions. Net interest income of CHF 514 million decreased 8%, mainly reflecting stable loan margins on lower average loan volumes and lower treasury revenues. Recurring commissions and fees of CHF 420 million decreased 5%, mainly driven by the negative impact from the SCFF fee waiver program, lower investment product fees, lower wealth structuring solutions fees and lower fees from lending activities, partially offset by higher discretionary mandate management fees.
Compared to 4Q21, net revenues decreased 15%, mainly reflecting lower other revenues and lower recurring commission and fees, partially offset by higher transaction- and performance-based revenues and higher net interest income. Other revenues in 1Q22 included the loss on the equity investment in Allfunds Group, partially offset by the gains on the sale of real estate. Other revenues in 4Q21 included the gain on the equity investment in Allfunds Group of CHF 31 million, the gain on the sale of real estate of CHF 19 million and the gains on the sale of businesses of CHF 17 million, partially offset by the loss on the equity investment in SIX of CHF 35 million. Recurring commissions and fees decreased 3%, mainly reflecting lower investment product fees and lower wealth structuring solutions fees, partially offset by higher fee income on lending activities and higher discretionary mandate management fees. Transaction- and performance-based revenues increased 40%, mainly reflecting higher revenues from GTS and higher client activity. Net interest income increased 2%, mainly reflecting higher deposit margins on stable average deposit volumes, partially offset by higher loan margins on lower average loan volumes.
Provision for credit losses
The loan portfolio comprises of lombard lending, mortgages, ship finance, export finance, aviation and yacht finance and structured corporate lending.
In 1Q22, we recorded provision for credit losses of CHF 24 million, compared to provision for credit losses of CHF 13 million in 1Q21 and a release of provision for credit losses of CHF 7 million in 4Q21. The provisions in 1Q22 included CHF 40 million relating to Russia’s invasion of Ukraine, primarily reflecting non-specific provisions for expected credit losses due to increased credit risk. This was partially offset by a reduction of non-specific provisions related to ship finance.
Total operating expenses
Compared to 1Q21, total operating expenses of CHF 1,510 million increased 38%, mainly driven by higher general and administrative expenses and higher compensation and benefits. General and administrative expenses of CHF 662 million increased 98%, mainly driven by higher litigation provisions, higher allocated corporate function costs and higher professional services fees. Compensation and benefits of CHF 749 million increased 13%, mainly driven by higher discretionary compensation expenses, higher salaries and higher allocated corporate function costs.
Compared to 4Q21, total operating expenses increased 23%, mainly reflecting higher general and administrative expenses and higher compensation and benefits. General and administrative expenses increased 52%, mainly reflecting higher litigation provisions. Compensation and benefits increased 7%, primarily reflecting higher allocated corporate function costs, discretionary compensation expenses, deferred compensation expenses from prior-year awards, salaries and social security and pension expenses.
Margins
Our gross margin was 65 basis points in 1Q22, a decrease of 49 basis points compared to 1Q21, mainly driven by lower other revenues and lower transaction- and performance-based revenues. Compared to 4Q21, our gross margin was 8 basis points lower, mainly reflecting lower other revenues, partially offset by higher transaction- and performance-based revenues and a 4.0% decrease in average assets under management.
> Refer to “Assets under management” for further information.
Our net margin was negative 20 basis points in 1Q22, a decrease of 73 basis points compared to 1Q21, mainly reflecting lower net revenues and higher total operating expenses. Compared to 4Q21, our net margin was 28 basis points lower, mainly reflecting higher total operating expenses and lower net revenues.
13
Assets under management
As of the end of 1Q22, assets under management of CHF 707.0 billion were CHF 35.6 billion lower compared to the end of 4Q21, driven by unfavorable market movements and structural effects, including certain de-risking measures and CHF 10.4 billion related to the sanctions imposed in connection with the Russian invasion of Ukraine, partially offset by favorable foreign exchange-related movements and net new assets. Net new assets of CHF 4.8 billion mainly reflected inflows from our Swiss ultra-high-net-worth business, Asia Pacific and our external asset manager business.
Assets under management
   in / end of % change
1Q22 4Q21 1Q21 QoQ YoY
Assets under management (CHF billion)  
Assets under management 707.0 742.6 757.0 (4.8) (6.6)
Average assets under management 724.4 754.6 728.8 (4.0) (0.6)
Assets under management by currency (CHF billion)  
USD 344.0 366.6 361.6 (6.2) (4.9)
EUR 133.4 143.1 152.3 (6.8) (12.4)
CHF 75.8 78.6 72.4 (3.6) 4.7
Other 153.8 154.3 170.7 (0.3) (9.9)
Assets under management  707.0 742.6 757.0 (4.8) (6.6)
Growth in assets under management (CHF billion)  
Net new assets 4.8 (2.9) 14.5 – –
Other effects (40.4) (15.1) 35.6 – –
   of which market movements  (31.6) 6.8 6.9 – –
   of which foreign exchange  6.5 (18.9) 33.0 – –
   of which other  (15.3) (3.0) (4.3) – –
Growth in assets under management  (35.6) (18.0) 50.1 – –
Growth in assets under management (annualized) (%)  
Net new assets 2.6 (1.5) 8.2 – –
Other effects (21.8) (8.0) 20.1 – –
Growth in assets under management (annualized)  (19.2) (9.5) 28.3 – –
Growth in assets under management (rolling four-quarter average) (%)  
Net new assets 0.1 1.5 4.6 – –
Other effects (6.7) 3.6 14.4 – –
Growth in assets under management (rolling four-quarter average)  (6.6) 5.1 19.0 – –
14
Investment Bank
In 1Q22, we reported income before taxes of CHF 124 million, compared to a loss before taxes of CHF 2,310 million in 1Q21, which included a charge related to Archegos. Net revenues of CHF 1,938 million decreased 50% compared to a strong 1Q21, and were negatively affected by volatile market conditions due to Russia's invasion of Ukraine and the impact of de-risking.
Results summary
1Q22 results
In 1Q22, we reported income before taxes of CHF 124 million, compared to a loss before taxes of CHF 2,310 million in 1Q21. Adjusted loss before taxes was CHF 51 million in 1Q22, reflecting reduced client activity across businesses, lower capital usage and geopolitical instability. Net revenues of CHF 1,938 million decreased 50% compared to a strong 1Q21, driven by lower sales and trading revenues, which included the impact of resizing our prime services franchise and also included Russia-related trading and fair value losses of CHF 89 million in our GTS franchise, and reduced capital markets revenues. In addition, 1Q22 revenues included a gain on the sale of real estate of CHF 53 million. We recorded a release of provision for credit losses of CHF 156 million, compared to provision for credit losses of CHF 4,365 million in 1Q21. The provision for credit losses in 1Q21 was driven by a charge of CHF 4,430 million, or USD 4,707 million, related to Archegos. Total operating expenses of CHF 1,970 million increased 8% compared to 1Q21, primarily reflecting higher compensation and benefits.
Compared to 4Q21, net revenues increased 16%, reflecting higher sales and trading revenues due to a seasonal increase in client activity and increased volatility, partially offset by reduced capital markets and advisory revenues. We recorded a release of provision for credit losses of CHF 156 million, compared to a release of provision for credit losses of CHF 7 million in 4Q21. Total operating expenses decreased 46%, primarily due to a goodwill impairment charge of CHF 1,623 million in 4Q21. Adjusted total operating expenses increased 5% compared to 4Q21.
Capital and leverage metrics
As of the end of 1Q22, RWA were USD 92.6 billion, an increase of USD 0.4 billion compared to the end of 4Q21, driven by higher levels of market risk and impact of changes in certain loan commitment and derivative classifications, partially offset by business reductions, including the impact of resizing our prime services franchise. Leverage exposure was USD 363.9 billion, a decrease of USD 16.4 billion compared to the end of 4Q21, primarily due to reductions in prime services and a decrease in HQLA, partially offset by a seasonal increase in business activity.
Divisional results
   in / end of % change
1Q22 4Q21 1Q21 QoQ YoY
Statements of operations (CHF million)  
Net revenues  1,938 1,666 3,884 16 (50)
Provision for credit losses  (156) (7) 4,365 – –
Compensation and benefits 1,098 953 975 15 13
General and administrative expenses 693 941 673 (26) 3
Commission expenses 143 119 164 20 (13)
Goodwill impairment 0 1,623 0 (100) –
Restructuring expenses 36 25 17 44 112
Total other operating expenses 872 2,708 854 (68) 2
Total operating expenses  1,970 3,661 1,829 (46) 8
Income/(loss) before taxes  124 (1,988) (2,310) – –
Economic profit (CHF million) (297) (1,897) (2,194) (84) (86)
Statement of operations metrics  
Return on regulatory capital (%) 2.8 (44.5) (42.4) – –
Cost/income ratio (%) 101.7 219.7 47.1 – –
15
Divisional results (continued)
   in / end of % change
1Q22 4Q21 1Q21 QoQ YoY
Net revenue detail (CHF million)  
Fixed income sales and trading 741 460 1,469 61 (50)
Equity sales and trading 504 370 937 36 (46)
Capital markets 430 535 1,244 (20) (65)
Advisory and other fees 204 303 235 (33) (13)
Other revenues 1 59 (2) (1) – –
Net revenues  1,938 1,666 3,884 16 (50)
Balance sheet statistics (CHF million)  
Total assets 253,958 274,112 356,359 (7) (29)
Risk-weighted assets 85,464 84,313 109,654 1 (22)
Risk-weighted assets (USD) 92,632 92,193 116,527 0 (21)
Leverage exposure 335,763 347,774 417,826 (3) (20)
Leverage exposure (USD) 363,921 380,278 444,012 (4) (18)
1
Other revenues include treasury funding costs and changes in the carrying value of certain investments.
Reconciliation of adjustment items
   Investment Bank
in 1Q22 4Q21 1Q21
Results (CHF million)  
Net revenues  1,938 1,666 3,884
   Real estate (gains)/losses  (53) 0 0
   Archegos  (17) 0 0
Adjusted net revenues  1,868 1,666 3,884
Provision for credit losses  (156) (7) 4,365
   Archegos  155 5 (4,430)
Adjusted provision for credit losses  (1) (2) (65)
Total operating expenses  1,970 3,661 1,829
   Goodwill impairment  0 (1,623) 0
   Restructuring expenses  (36) (25) (17)
   Major litigation provisions  0 (149) 0
   Expenses related to real estate disposals  (3) (8) (33)
   Archegos  (11) (19) 0
Adjusted total operating expenses  1,920 1,837 1,779
Income/(loss) before taxes  124 (1,988) (2,310)
Adjusted income/(loss) before taxes  (51) (169) 2,170
Adjusted economic profit (428) (533) 1,165
Adjusted return on regulatory capital (%) (1.2) (3.8) 42.2
Adjusted results are non-GAAP financial measures. Refer to “Reconciliation of adjustment items” in Credit Suisse for further information.
Results details
Fixed income sales and trading
In 1Q22, fixed income revenues of CHF 741 million decreased 50% compared to a record 1Q21, reflecting lower revenues across products, including trading losses related to Russia's invasion of Ukraine. Market conditions were characterized by higher levels of volatility due to geopolitical and macroeconomic uncertainties including increased interest rate volatility, high levels of inflation and increased energy prices. Securitized products revenues decreased significantly compared to a strong prior year, driven by reduced agency and non-agency trading activity. Emerging markets revenues decreased significantly, driven by the trading losses related to Russia's invasion of Ukraine. In addition, global credit products revenues decreased, reflecting lower leveraged finance and investment grade trading revenues, particularly in the US due to high levels of volatility and reduced trading volumes. Macro products revenues declined, driven by lower revenues in our foreign exchange business, particularly in Turkey, and lower rates revenues.
Compared to 4Q21, revenues increased 61%, reflecting a seasonal increase in client activity across securitized products and global credit products as well as an increase in macro revenues,
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partially offset by lower emerging markets revenues. Securitized products revenues increased, driven by higher agency and non-agency trading activity. In addition, global credit products revenues increased, reflecting higher leveraged finance trading activity due to increased volatility and trading volumes. Macro revenues increased, primarily due to higher revenues in our rates business, partially offset mainly by lower foreign exchange revenues in Turkey. These increases were partially offset by lower emerging markets revenues, primarily driven by the trading losses related to Russia's invasion of Ukraine.
Equity sales and trading
In 1Q22, equity sales and trading revenues of CHF 504 million decreased 46% compared to 1Q21, reflecting lower prime services, equity derivatives and cash equities results. Prime services revenues decreased, consistent with a decline in client balances in light of our strategy to resize our franchise. Equity derivatives revenues delivered strong results, albeit lower compared to a strong prior year, reflecting lower structured and corporate equity derivatives trading activity. Cash equities revenues decreased compared to a strong prior year, due to lower secondary trading revenues in Asia and the US.
Compared to 4Q21, revenues increased 36%, reflecting higher equity derivatives and cash equities trading activity driven by increased trading volumes and a seasonal increase in client activity, partially offset by lower prime services revenues. Equity derivatives revenues increased significantly, driven by increased structured equity and flow equity derivatives trading revenues due to high levels of volatility. In addition, cash equities revenues increased, driven by higher trading activity across regions. This was partially offset by lower prime services revenues, consistent with a decline in client balances in light of our strategy to resize our franchise.
Capital markets
In 1Q22, capital markets revenues of CHF 430 million decreased 65% compared to a strong 1Q21, reflecting significantly lower street fees across products. Equity capital markets revenues decreased, driven by significantly lower initial public offering (IPO) and follow-on issuance activity. In addition, debt capital markets revenues decreased, driven by lower leveraged finance and investment grade issuance revenues.
Compared to 4Q21, revenues decreased 20%, driven by lower client activity in equity capital markets, partially offset by higher client activity in debt capital markets. Equity capital markets revenues decreased, driven by significantly reduced IPO issuance activity due to high levels of market volatility. Debt capital markets increased, reflecting a seasonal increase in client activity.
Advisory and other fees
In 1Q22, advisory revenues of CHF 204 million decreased 13% compared to 1Q21, driven by lower revenues from completed mergers and acquisitions (M&A) transactions.
Compared to 4Q21, revenues decreased 33%, reflecting lower revenues from completed M&A transactions.
Provision for credit losses
In 1Q22, we recorded a release of provision for credit losses of CHF 156 million, compared to provision for credit losses of CHF 4,365 million in 1Q21 and a release of provision for credit losses of CHF 7 million in 4Q21. 1Q22 included a release of CHF 155 million pertaining to an assessment of the future recoverability of receivables related to Archegos. The provision for credit losses in 1Q21 was driven by a charge of CHF 4,430 million, or USD 4,707 million, related to Archegos.
Total operating expenses
In 1Q22, total operating expenses of CHF 1,970 million increased 8% compared to 1Q21, primarily reflecting higher compensation and benefits. Compensation and benefits of CHF 1,098 million increased 13%, mainly reflecting higher discretionary compensation expenses. General and administrative expenses of CHF 693 million increased 3%, driven by increased allocated corporate function costs and professional services fees, partially offset by decreased expenses related to real estate disposals and decreased revenue-related costs from capital markets transactions. In 1Q22, we incurred restructuring expenses of CHF 36 million.
Compared to 4Q21, total operating expenses decreased 46%, primarily due to the goodwill impairment charge of CHF 1,623 million in 4Q21. Adjusted total operating expenses increased 5% compared to 4Q21. Compensation and benefits increased 15%, mainly reflecting higher deferred compensation expenses from prior year awards. General and administrative expenses decreased 26%, reflecting lower litigation expenses, decreased revenue-related costs from capital markets transactions and decreased allocated corporate functions costs.
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Swiss Bank
In 1Q22, we reported income before taxes of CHF 471 million and net revenues of CHF 1,109 million. Income before taxes increased 14% compared to 1Q21 and decreased 22% compared to 4Q21.
Results summary
1Q22 results
In 1Q22, income before taxes of CHF 471 million increased 14% compared to 1Q21. Net revenues of CHF 1,109 million increased 8%, mainly reflecting higher other revenues and higher recurring commissions and fees, partially offset by lower net interest income. Other revenues in 1Q22 included gains on the sale of real estate of CHF 84 million. Provision for credit losses was CHF 23 million compared to CHF 26 million in 1Q21. Total operating expenses of CHF 615 million increased 4%, mainly reflecting higher compensation and benefits as well as higher general and administrative expenses, partially offset by lower restructuring expenses.
Compared to 4Q21, income before taxes decreased 22%. Net revenues decreased 8%, mainly driven by lower other revenues. Other revenues in 1Q22 included the gains on the sale of real estate. Other revenues in 4Q21 included gains on the sale of real estate of CHF 205 million, partially offset by a loss on the equity investment in SIX of CHF 35 million. Provision for credit losses was CHF 23 million compared to a release of provision for credit losses of CHF 4 million in 4Q21. Total operating expenses were stable, with higher compensation and benefits offset by lower general and administrative expenses.
Capital and leverage metrics
As of the end of 1Q22, we reported RWA of CHF 70.5 billion, CHF 1.7 billion higher compared to the end of 4Q21, mainly related to movements in risk levels in credit risk, primarily relating to increased lending exposures. Leverage exposure of CHF 247.6 billion was stable compared to the end of 4Q21, with business growth offset by lower HQLA.
Divisional results
   in / end of % change
1Q22 4Q21 1Q21 QoQ YoY
Statements of operations (CHF million)  
Net revenues  1,109 1,209 1,031 (8) 8
Provision for credit losses  23 (4) 26 – (12)
Compensation and benefits 391 331 378 18 3
General and administrative expenses 193 240 180 (20) 7
Commission expenses 30 34 28 (12) 7
Restructuring expenses 1 1 7 0 (86)
Total other operating expenses 224 275 215 (19) 4
Total operating expenses  615 606 593 1 4
Income before taxes  471 607 412 (22) 14
Economic profit (CHF million) 154 256 105 (40) 47
Statement of operations metrics  
Return on regulatory capital (%) 14.2 18.3 12.1 – –
Cost/income ratio (% 55.5 50.1 57.5 – –
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