Prepared and filed by St Ives Burrups

FORM 6-K


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


Report of Foreign Private Issuer
Dated February 25, 2003

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of February 25, 2003

Commission File Number 001-15244

CREDIT SUISSE GROUP
(Translation of registrant's name into English)

Paradeplatz 8, P.O. Box 1, CH-8070 Zurich, Switzerland
(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover 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.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes        No  

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-       




Media Relations

CREDIT SUISSE GROUP
P.O. Box 1
CH-8070 Zurich

Telephone +41-1-333 8844
Fax             +41-1-333 8877

e-mail media.relations@csg.ch

 

 

CREDIT SUISSE GROUP ANNOUNCES RESULTS FOR FOURTH QUARTER AND FULL YEAR 2002
 
Reports Net Loss of CHF 950 Million for the
 Fourth Quarter And Net Loss of CHF 3.3 Billion for the Full Year 2002
 
Reports Progress in Implementation of Key Measures
To Restore Profitability in 2003
 
 
Zurich, February 25, 2003 Credit Suisse Group today announced a net loss of CHF 950 million for the fourth quarter and a net loss of CHF 3.3 billion for the full year 2002, in line with the Group’s preliminary outlook announced on January 21, 2003. Fourth quarter 2002 results were influenced by the continuing financial market weakness, a number of exceptional items and a change in accounting principles to allow for the recognition of deferred tax assets. Winterthur’s results recovered in the fourth quarter 2002. Private Banking reported CHF 18.7 billion in net new assets for the full year 2002. Credit Suisse First Boston continued to achieve significant cost reductions, while maintaining strong market positions in its key businesses. Credit Suisse Group is entering 2003 with a stronger balance sheet and an improved capital base. The Group's Board of Directors will propose a dividend of CHF 0.10 per share to the Annual General Meeting on April 25, 2003.

 

 


Oswald J. Grübel, Co-CEO of Credit Suisse Group and Chief Executive Officer of Credit Suisse Financial Services, stated, "We have made significant progress in implementing key measures announced in the third quarter to restore the Group's core earnings strength. At Credit Suisse Financial Services, we continued to realign the European initiative to focus on private banking clients, thus generating considerable savings in terms of infrastructure, IT and personnel expenses. At Winterthur, results recovered due to a satisfactory operating performance and the positive impact of a change in accounting principles, and we are actively pursuing initiatives to reduce costs and withdraw from markets and businesses with unsatisfactory results in order to position us for a return to profitability in 2003."

John J. Mack, Co-CEO of Credit Suisse Group and Chief Executive Officer of Credit Suisse First Boston, said, "At Credit Suisse First Boston, we continued progress on cost reduction efforts in the fourth quarter, achieving a 14% decrease in operating expenses compared to the previous quarter and, at the same time, improved our global market rankings for 2002 in key businesses. In the fourth quarter, we also initiated a further cost reduction program to reduce annual operating expenses by an additional USD 500 million and accelerated the disposal of legacy asset portfolios that were hindering our financial performance and flexibility. In addition, we made substantial progress in resolving key regulatory issues facing Credit Suisse First Boston. As we move forward in 2003, we remain intensively focused on returning to profitability."

Fourth Quarter 2002 Group Results
Credit Suisse Group’s results for the fourth quarter of 2002 were influenced by the continuing financial market weakness, a number of exceptional items and a change in accounting


principles to allow for the recognition of deferred tax assets. For the quarter, the Group reported a net loss of CHF 950 million, compared with a net loss of CHF 2.1 billion in the third quarter 2002 and a net loss of CHF 830 million in the fourth quarter of 2001. The Group’s operating income stood at CHF 6.4 billion in the fourth quarter 2002, up 13% on the previous quarter but down 22% on the fourth quarter of 2001. Including restructuring charges presented as exceptional items at the business units, the Group’s operating expenses decreased 5% versus the third quarter to CHF 5.1 billion, and were down 26% on the fourth quarter 2001.

Full Year 2002 Group Results
For the full year 2002, the Group reported a net loss of CHF 3.3 billion, compared with a net profit of CHF 1.6 billion for the previous year. The Group’s operating income stood at CHF 28.0 billion for 2002, down 28% on the previous year. The Group’s full year operating expenses declined 22% versus 2001 to CHF 23.5 billion, primarily as a result of job reductions, a significant decrease in bonuses and the sale of non-core businesses. Earnings per share for 2002 amounted to a loss of CHF 2.78 versus a profit of CHF 1.33 for 2001, and the Group’s return on equity was -10.0%, versus 4.1% in 2001.

Exceptional Items and Recognition of Deferred Tax Assets On
Net Operating Losses in the Fourth Quarter 2002

Exceptional items recorded in the fourth quarter at Credit Suisse First Boston included a pre-tax charge of USD 450 million (CHF 702 million) for private litigation involving research analyst independence, certain IPO allocation practices, Enron and other related litigation; a pre-tax charge of USD 150 million (CHF 234 million) for the agreement in principle with various US regulators involving


research analyst independence and the allocation of IPO shares to executive officers; an after-tax loss of USD 250 million (CHF 390 million) in connection with the sale of Pershing; and a pre-tax restructuring charge of USD 204 million (CHF 319 million) in connection with its USD 500 million cost reduction program. At Credit Suisse Financial Services, exceptional items of CHF 73 million were recorded in the fourth quarter in connection with the focusing of the European initiative on private banking clients. Exceptional items for the Group in the fourth quarter 2002 totaled CHF 1.5 billion before tax and CHF 1.3 billion after tax.

The previously announced change in the Group’s accounting principles to allow for the recognition of deferred tax assets with respect to net operating losses, which is reflected in the fourth quarter, resulted in a positive cumulative effect for the Group of CHF 520 million from prior years and CHF 1.3 billion for the financial year 2002.

Business Unit Results
The Credit Suisse Financial Services business unit reported a net profit of CHF 705 million in the fourth quarter and a net loss of CHF 165 million for the full year 2002. This compared with a net loss of CHF 1.2 billion in the third quarter 2002 and a net profit of CHF 3.6 billion for 2001. Fourth quarter net profit benefited from the recognition of deferred tax assets on net operating losses as a result of the change in accounting principles in the amount of CHF 472 million for the financial year 2002, as well as the cumulative effect of CHF 266 million from prior years, primarily at Winterthur. Credit Suisse Financial Services reported a 54% increase in operating income to CHF 3.5 billion versus the third quarter, reflecting a CHF 1.2 billion increase in operating income in the insurance business and stable operating income in banking. Fourth


quarter operating expenses remained stable quarter-on-quarter and year-on-year despite expansion in certain markets.

Private Banking reported a segment profit (net operating profit before the above-mentioned exceptional items, the cumulative effect of a change in accounting principles and minority interests) of CHF 339 million in the fourth quarter 2002, up 12% versus the third quarter. Operating income rose 3% quarter-on-quarter but remained below the average of the previous quarters due to investor inactivity and a reduced asset base. Fourth quarter operating expenses increased 2% quarter-on-quarter, due mainly to project costs. For the full year 2002, Private Banking reported a segment profit of CHF 1.8 billion, down 23% versus the previous year.

Corporate & Retail Banking posted a segment profit (net operating profit before the cumulative effect of a change in accounting principles and minority interests) of CHF 46 million in the fourth quarter 2002, down 55% compared to the third quarter. Operating income declined 7% quarter-on-quarter, due, in particular, to a decrease in transaction-related commission income. Fourth quarter operating expenses rose 8% versus the third quarter, mainly as a result of project costs. For the full year 2002, Corporate & Retail Banking recorded a 19% increase in its segment profit, to CHF 363 million, versus 2001. The cost/income ratio was 68.7% in 2002, compared with 71.1% in 2001.

Life & Pensions recorded a segment profit (net operating profit before the cumulative effect of a change in accounting principles and minority interests) of CHF 93 million in the fourth quarter and a segment loss of CHF 1.4 billion for the full year 2002. Fourth quarter investment income was up 8% to CHF 333 million versus the previous


quarter. The full year loss reflects a CHF 3.3 billion decline in investment income, with an impact on the segment result of CHF 1.6 billion compared with the previous year. Life & Pensions reported a 9% increase in gross premiums written. Adjusted for acquisitions, divestitures and exchange rate impacts, premiums rose 10%. Operating expenses, comprising acquisition and non-deferrable costs, were up CHF 311 million year-on-year. This increase reflected the strong premium growth and additional DAC (deferred acquisition costs) and PVFP (present value of future profits) writedowns of CHF 292 million due to a change in the long-term assumptions regarding investment income. Excluding these writedowns, the expense ratio for 2002 was 9.9%, down from 10.9% in the prior year. Including these writedowns, the expense ratio for 2002 was 11.5%.

Insurance reported a segment profit (net operating profit before the cumulative effect of a change in accounting principles and minority interests) of CHF 6 million in the fourth quarter and a segment loss of CHF 992 million for the full year 2002. Fourth quarter investment income amounted to CHF 59 million. The full year loss reflects a CHF 2.2 billion decline in investment income, with an impact on the segment result of CHF 1.7 billion compared to 2001. For the full year 2002, net premiums earned rose 5% versus 2001. Adjusted for acquisitions, divestitures and exchange rate impacts, the segment reported a 9% increase in net premiums earned. The combined ratio improved by 2.2 percentage points, to 103.4%, compared with 2001.

As announced by Winterthur today, the Insurance and Life & Pensions units will be brought together under a joint management structure, effective March 1, 2003. The combination of the head offices in Winterthur is expected to result in a reduction of approximately 350 jobs. Programs to


increase efficiency will also be initiated in the countries in which Winterthur operates. The financial results of the two units will continue to be reported as separate segments.

In addition, given the continuing financial markets weakness and global uncertainty, Credit Suisse Financial Services has decided to implement a plan designed to further reduce costs in its banking business by approximately CHF 300 million, including a reduction of approximately 900 jobs. A series of measures to accompany the reduction in jobs has been formulated in conjunction with Credit Suisse Group’s staff council in Switzerland.

The Credit Suisse First Boston business unit reported a net loss of USD 811 million (CHF 1.3 billion) for the fourth quarter and a net loss of USD 1.2 billion (CHF 1.9 billion) for the full year 2002, including after-tax exceptional items of USD 813 million (CHF 1.3 billion) described above. This compares to a net loss of USD 425 million (CHF 679 million) in the previous quarter and a net loss of USD 821 million (CHF 1.4 billion) for the full year 2001. The fourth quarter net result benefited from the recognition of deferred tax assets on net operating losses as a result of a change in accounting principles in the amount of USD 556 million (CHF 868 million) for the financial year 2002, as well as a positive cumulative effect of USD 162 million (CHF 254 million) from prior years. Fourth quarter operating income was down 11% on the previous quarter in US dollar terms, primarily due to reduced revenues in the Institutional Securities segment. The business unit reduced operating expenses in the fourth quarter by 14% in US dollar terms versus the third quarter 2002, as part of continued efforts to adapt the business unit’s cost structure to the current environment.


The Institutional Securities segment reported a decrease in operating income of 12% quarter-on-quarter, reflecting declines in the Fixed Income and Equity businesses. The segment reduced operating expenses in the fourth quarter 2002 by 16% compared with the third quarter, primarily through reductions in incentive compensation. For the full year 2002, the segment's operating income declined 23% and operating expenses fell 24% versus the previous year. In 2002, the Institutional Securities segment succeeded in maintaining or improving its market rankings. The Fixed Income business ranked number one in high yield and asset-backed new issuances and improved its overall global debt issuance position to second. The Equity division ranked fourth in global equity new issuances in 2002, tied for first place in global equity research, ranked first in pan-European and Latin American research and second in non-Japan Asia research. Furthermore, in investment banking, Credit Suisse First Boston ranked third in terms of US dollar volume of announced M&A transactions for 2002.

Operating income in the CSFB Financial Services segment decreased 3% quarter-on-quarter. Fourth quarter 2002 operating expenses declined 4% compared to the third quarter, reflecting the impact of a number of cost reduction initiatives. In January 2003, Credit Suisse First Boston announced an agreement to sell its Pershing unit, as outlined below. For the full year 2002, operating income decreased 13% and operating expenses were down 15% compared to 2001.

Capital Base
Credit Suisse Group’s consolidated BIS tier 1 ratio stood at 9.7% as of December 31, 2002, up from 9.0% at the end of the third quarter of 2002. This increase was attributable to the issuance by the Group of Mandatory Convertible Securities in


the amount of CHF 1.25 billion in December 2002, as well as to a reduction in risk-weighted assets and the currency translation effect of the lower US dollar versus the Swiss franc. The Mandatory Convertible Securities issue qualifies as equity capital and, accordingly, as tier 1 capital under BIS rules. The BIS tier 1 ratio for the Group’s banking business stood at 10.0% as of December 31, 2002, up from 9.4% at the end of the third quarter. Winterthur’s solvency margin (calculated in line with the EU directive) increased to 167% as of December 31, 2002, compared with 155% as of September 30, 2002.

The sale of Pershing to The Bank of New York, expected to close in the first half of 2003 subject to certain regulatory and other conditions, will increase the regulatory capital of Credit Suisse First Boston and Credit Suisse Group through the elimination of USD 500 million (CHF 695 million) of goodwill and a USD 1.6 billion (CHF 2.2 billion) reduction in risk-weighted assets. Furthermore, the sale will result in the elimination of USD 900 million (CHF 1.3 billion) of acquired intangible assets before tax, or USD 585 million (CHF 813 million) after tax.

Net New Assets
In the fourth quarter 2002, Credit Suisse Financial Services reported a net asset outflow of CHF 0.6 billion, with net inflows of CHF 0.5 billion at Private Banking and CHF 0.2 billion at Corporate & Retail Banking offset by a net outflow of CHF 1.3 billion from Life & Pensions. At Private Banking, net new assets declined versus the third quarter due mainly to the impact of increased attention surrounding Credit Suisse Group’s financial performance in the course of 2002. Credit Suisse First Boston reported a net asset outflow of CHF 6.0 billion in the fourth quarter, as a CHF 2.7 billion net inflow of private client assets was offset


by a net outflow of CHF 8.7 billion from Credit Suisse Asset Management related primarily to performance issues. For Credit Suisse Group, an overall net asset outflow of CHF 6.6 billion was recorded in the fourth quarter, versus a net outflow of CHF 13.7 billion in the third quarter 2002.

For the full year 2002, the Group reported a net asset outflow of CHF 2.6 billion, with CHF 18.9 billion in net new assets at Credit Suisse Financial Services – related primarily to Private Banking – offset by outflows of CHF 21.5 billion from Credit Suisse First Boston. The Group’s total assets under management stood at CHF 1,195.3 billion as of December 31, 2002, corresponding to a decline of 2.2% versus September 30, 2002, and a decrease of 16.4% versus December 31, 2001.

Valuation Adjustments, Provisions and Losses
Fourth quarter valuation adjustments, provisions and losses include a charge of CHF 778 million relating to an adjustment in the method of estimating inherent losses related to lending activities. This previously announced adjustment was considered necessary to better reflect in the loan provision the continued deterioration of the credit markets. The impact on the income statement of this charge, after tax, was offset by a release from the reserve for general banking risks, which was recorded as extraordinary income. Excluding the provision for inherent loan losses, credit provisions were CHF 637 million in the fourth quarter 2002, down 22% versus the third quarter, and were CHF 2.3 billion for the full year 2002, up 34% versus 2001, reflecting the deterioration in the credit environment globally. Overall, total valuation adjustments, provisions and losses were CHF 2.4 billion in the fourth quarter, reflecting the provision for inherent loan losses, US legal provisions, and increased valuation adjustments and losses.


Dividend Proposal
The Group’s Board of Directors has decided to propose a dividend of CHF 0.10 per share to the Annual General Meeting on April 25, 2003. This compares to a par value reduction of CHF 2 per share for the financial year 2001. If approved by the Annual General Meeting on April 25, 2003, this dividend will be paid out on May 2, 2003.

Termination of Share Buyback Program
Credit Suisse Group is terminating the share buyback program launched in March 2001, under which it purchased the equivalent of 15,330,000 shares with a par value of CHF 1 each. The value of the shares repurchased was CHF 1.1 billion, and the Group's share capital was reduced by this amount. The second trading line for shares on virt-x will be closed with immediate effect.

Advisory Board
Credit Suisse Group will streamline its Swiss and International Advisory Boards to create a single Advisory Board that will concentrate on the Group's main activities in Switzerland and Europe, with a special focus on Credit Suisse Financial Services. The new Advisory Board will comprise approximately 20 members, effective as of 2003.

Outlook
Credit Suisse Group remains cautious in its outlook for 2003 given the continued challenging market environment and global uncertainty. The Group continues to expect that the measures taken during 2002, as well as those being implemented in 2003, will restore its profitability in 2003. Additionally, the Group is entering 2003 with a stronger balance sheet and an improved capital base.


Enquiries
Credit Suisse Group, Media Relations Telephone +41 1 333 8844
Credit Suisse Group, Investor Relations Telephone +41 1 333 4570

For further information relating to Credit Suisse Group’s results for the fourth quarter and full year 2002, please refer to the Quarterly Report Q4 2002, including the reconciliation contained therein of the business unit results to Credit Suisse Group’s reported results. The Quarterly Report Q4 2002 as well as the slide presentation to analysts and the media are available on our website at: www.credit-suisse.com/results/docu

Credit Suisse Group
Credit Suisse Group is a leading global financial services company headquartered in Zurich. The business unit Credit Suisse Financial Services provides private clients and small and medium-sized companies with Private Banking and financial advisory services, banking products, and Pension and Insurance solutions from Winterthur. The business unit Credit Suisse First Boston, an Investment Bank, serves global institutional, corporate, government and individual clients in its role as a financial intermediary. Credit Suisse Group’s registered shares (CSGN) are listed in Switzerland and Frankfurt, and in the form of American Depositary Shares (CSR) in New York. The Group employs around 78,000 staff worldwide. As of December 31, 2002, it reported assets under management of CHF 1,195.3 billion.


Cautionary Statement Regarding Litigation
The legal reserve charge relating to private litigation represents management’s current estimate after consultation with counsel of the probable aggregate costs associated with such matters. Credit Suisse First Boston believes that it has substantial defenses in these private litigation matters, which are at an early stage. Given that it is difficult to predict the outcome of these matters, where claimants seek large or indeterminate damages or where the cases present novel theories or involve a large number of parties, Credit Suisse First Boston cannot state with confidence what the timing or eventual outcome will actually be. The legal reserve may be subject to revision in the future.

Cautionary Statement Regarding Forward-looking Information
This press release contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements. Words such as “believes,” “anticipates,” “expects,” "intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing. We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.


Today’s Presentation of the Results

Speakers
Oswald J. G
Analysts’ presentation, Zurich (English)
  February 25, 2003, 10.00 am CET / 9.00 am GMT / 4.00 am EST at the Credit Suisse Forum St. Peter, Zurich
    Internet:
      Live broadcast at www.credit-suisse.com/results
      Video playback available approximately 3 hours after the event
    Telephone:
    Live audio dial-in on +41 91 610 5600 (Europe), +44 207 866 4111 (UK), or +1 412 858 4600 (USA), ask for “Credit Suisse Group quarterly results”; please dial in 10 minutes before the start of the presentation
    Telephone replay available approximately 1 hour after the event on
      +41 91 612 4330 (Europe), +44 207 866 4300 (UK) or +1 412 858 1440 (USA), conference ID 091#
rübel, Co-CEO of Credit Suisse Group and Chief Executive Officer of Credit Suisse Financial Services Philip K. Ryan, Chief Financial Officer of Credit Suisse Group Ulrich Körner, Chief Financial Officer of Credit Suisse Financial Services Barbara Yastine, Chief Financial Officer of Credit Suisse First Boston
 
Media conference, Zurich (English/German)
  February 25, 2003, 12.00 noon CET / 11.00 am GMT / 6.00 am EST at the Credit Suisse Forum St. Peter, Zurich
  Simultaneous interpreting: German – English, English – German
  Internet:
  Live broadcast at www.credit-suisse.com/results
  Video playback available approximately 3 hours after the event
  Telephone:
  Live audio dial-in on +41 91 610 5600 (Europe), +44 207 866 4111 (UK), or +1 412 858 4600 (USA), ask for “Credit Suisse Group quarterly results”; please dial in 10 minutes before the start of the presentation
  Telephone replay available approximately 1 hour after the event on
    +41 91 612 4330 (Europe), +44 207 866 43 00 (UK) or +1 412 858 1440 (USA), conference ID 139# (English) or 241# (German)

Speakers
Oswald J. Grübel, Co-CEO of Credit Suisse Group and Chief Executive Officer of Credit Suisse Financial Services
John J. Mack, Co-CEO of Credit Suisse Group and Chief Executive Officer of Credit Suisse First Boston (via videoconference)
Philip K. Ryan, Chief Financial Officer of Credit Suisse Group

Winterthur media release

Winterthur streamlines its management structures


Winterthur, February 25, 2003 – Winterthur, a subsidiary of Credit Suisse Group, is realigning its organizational structure. The Insurance and Life & Pensions divisions will be brought together under a joint management structure within Winterthur Group, headed by CEO Leonhard Fischer, and will have a single Executive Board. The streamlining of these central management structures is aimed at achieving a significant increase in efficiency and will entail a reduction of approximately 350 jobs at the Winterthur head office. The new organizational framework and the measures already initiated will provide Winterthur with a solid basis from which to increase its profitability and strengthen its position in the insurance market.

As a result of the new organizational structure, the two Winterthur units – Insurance (property and liability business) and Life & Pensions (life insurance and retirement provision) – will be combined within Germany, Italy, Spain and Belgium. In Switzerland, however, life and non-life insurance will continue to be managed separately due to the substantial size of both of these units. They will work together very closely and increasingly exploit their synergies. In the UK, these two units will also remain separate because their business models are very different and synergies are minimal.

In the wake of the reorganization, the head offices of the two units will be brought together in Winterthur. The reorganization of the head office in Winterthur is expected to entail a reduction of approximately 350 jobs, including some redundancies. A series of measures to accompany the reduction in jobs has been formulated in conjunction with Credit Suisse Group's staff council in Switzerland. In addition, Winterthur Group's asset management unit will be integrated in the new organization. Financial results will continue to be reported separately. Markus Dennler, the current CEO of Winterthur Life & Pensions, will take on new responsibilities within Credit Suisse Group, and Manfred Broska, the current CEO of Winterthur Insurance, will retire.

Winterthur is committed to significantly improving its efficiency. "Ambitious cost management, operational excellence and qualitative growth are therefore our priorities," stated Leonhard Fischer with regard to the company’s strategic orientation. Programs already initiated in order to improve efficiency will continue and will be integrated in the new organization. The management of all Swiss and foreign Market Units has been charged with the task of launching additional initiatives to boost productivity. Duplications in support functions both in Switzerland and in companies outside Switzerland will be reduced. The cost savings which are realized will have a substantial impact on Winterthur Group’s administration costs.

The aim is to concentrate on those markets in which the Winterthur Group operates profitably, or in which it can achieve profitability in a foreseeable period of time. Winterthur aims to have a


business model targeting sustainable profitability for each of its markets. In markets where this is not possible, the respective companies will be sold.

Oswald J. Grübel, Co-CEO of Credit Suisse Group and CEO of Credit Suisse Financial Services, stated: "We are facing a fundamental change in the insurance sector, as companies must henceforth be profitable despite much lower investment income. With the timely implementation of the new organizational structure as well as the measures already initiated, Winterthur has created an excellent basis from which to operate in a more competitive market environment."

Leonhard Fischer, CEO of Winterthur Group, said: "Thanks to its excellent employees and its strong brand, Winterthur has - in the longer term - all the prerequisites to achieve a leading position in the insurance business in terms of profitability, productivity and quality."

For questions, please contact:  
Winterthur, media relations Tel. +41 52 261 61 04
   
Internet:  www.winterthur.com  
   

Winterthur Group

Winterthur Group is a leading Swiss insurance company with head office in Winterthur and, as an international company, ranks among the top five insurers in Europe. The Group's products include a broad range of property and liability insurance products, as well as insurance solutions in life and pensions that are tailored to the individual needs of private and corporate clients. With approximately 32,000 employees worldwide, Winterthur Group achieved a premium volume of CHF 37.4 billion in 2002 and managed CHF 133.7 billion in assets.

Credit Suisse Group

Credit Suisse Group is a leading global financial services company headquartered in Zurich. The business unit Credit Suisse Financial Services provides private clients and small and medium-sized companies with private banking and financial advisory services, banking products, and pension and insurance solutions from Winterthur. The business unit Credit Suisse First Boston, an investment bank, serves global institutional, corporate, government and individual clients in its role as a financial intermediary. Credit Suisse Group’s registered shares (CSGN) are listed in Switzerland and Frankfurt, and in the form of American Depositary Shares (CSR) in New York. The Group employs around 78,000 staff worldwide. As of December 31, 2002, it reported assets under management of CHF 1,195.3 billion.


Cautionary statement regarding forward-looking information

This press release contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements.

Words such as “believes,” “anticipates,” “expects,” intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing.

We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in Credit Suisse Group’s most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.


QUARTERLY REPORT Q4 AND FINANCIAL REVIEW 2002

Editorial

Financial highlights Q4/2002

An overview of Credit Suisse Group

Risk Management

Credit Suisse Financial Services

Credit Suisse First Boston

Reconciliation of operating to consolidated results

Consolidated results Credit Suisse Group

Information for investors



Credit Suisse Group is a leading global financial services company headquartered in Zurich. Credit Suisse Financial Services provides private clients and small and medium-sized companies with private banking and financial advisory services, banking products, and pension and insurance solutions from Winterthur. Credit Suisse First Boston, the investment bank, serves global institutional, corporate, government and individual clients in its role as a financial intermediary. Credit Suisse Group‘s registered shares (CSGN) are listed in Switzerland and Frankfurt, and in the form of American Depositary Shares (CSR) in New York. The Group employs around 78,000 staff worldwide.

1 Editorial 2 Financial highlights Q4/2002 4 An overview of Credit Suisse Group 9 Risk Management 12 Review of business units 12 Credit Suisse Financial Services 22 Credit Suisse First Boston 33 Reconciliation of operating to consolidated results 37 Consolidated results Credit Suisse Group 37 Consolidated income statement 38 Consolidated balance sheet 44 Information for investors

Cautionary statement regarding forward-looking information

This Quarterly Report contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements.

Words such as “believes,” “anticipates,” “expects,” “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing.

We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.



EDITORIAL

Oswald J. Grübel

Co-CEO Credit Suisse Group
Chief Executive Officer Credit Suisse Financial Services

John J. Mack

Co-CEO Credit Suisse Group
Chief Executive Officer Credit Suisse First Boston

Dear shareholders, clients and colleagues

Credit Suisse Group‘s performance in the fourth quarter and full year 2002 was not satisfactory. To position the Group for profitability in 2003, we took aggressive steps during the year to address investment losses in our insurance business, set aside provisions for regulatory and litigation matters, reduce our exposure to legacy assets in our investment banking business and reduce costs across the Group. While we have taken these actions, our core businesses continued to hold leadership positions in key markets.

In the fourth quarter of 2002, the Group reported a net loss of CHF 950 million, compared with a net loss of CHF 2.1 billion in the third quarter. For the full year 2002, the Group posted a net loss of CHF 3.3 billion, compared with a net profit of CHF 1.6 billion in 2001.

The business unit Credit Suisse Financial Services reported a net profit of CHF 705 million in the fourth quarter, including exceptional items of CHF 73 million recognized as a result of focusing the European initiative on private banking clients, and a net loss of CHF 165 million for the full year.

Private Banking delivered a slightly higher profit than in the third quarter, despite project costs and low transaction-based income. Corporate & Retail Banking‘s profit was down quarter-on-quarter but up for the full year.

Despite continuing weakness in the financial markets, both Life & Pensions and Insurance returned to profitability in the fourth quarter. This was attributable to a satisfactory operating performance and the positive impact of a change in accounting principles. Winterthur is continuing to focus on achieving profitability for 2003 by concentrating on core markets, right pricing and the reduction of administration costs, with less reliance on investment income than in the past.

The business unit Credit Suisse First Boston recorded a net loss for the fourth quarter of USD 811 million (CHF 1.3 billion), including a number of after-tax exceptional items totaling USD 813 million (CHF 1.3 billion), and a net loss of USD 1.2 billion (CHF 1.9 billion) for the year 2002.

Credit Suisse First Boston faced deteriorating conditions in the equity and investment banking businesses throughout the year but succeeded in maintaining its market shares and rankings, while implementing a cost reduction program and reducing its exposure to certain legacy private equity, real estate and distressed debt assets. Revenues declined 21% in 2002 compared with the previous year. Full year operating expenses at Credit Suisse First Boston were down 23% compared with 2001. Credit Suisse First Boston also reached an agreement in principle with certain US regulators in the fourth quarter to settle US investigations relating to research analyst independence and IPO allocations.

The Group‘s consolidated BIS tier 1 ratio stood at 9.7% as of December 31, 2002, up from 9.0% at the end of the third quarter, while the banking BIS tier 1 ratio rose to 10.0%. Winterthur‘s solvency margin stood at 167% at the end of the fourth quarter, compared with 155% as of September 30, 2002. Through the issuance of Mandatory Convertible Securities, the prudent management of risk-weighted assets, provisioning for inherent loan losses and litigation in the US, and the future impact on capital of the Pershing sale, we are entering 2003 with a stronger balance sheet and an improved capital base.

As Credit Suisse Group emerges from an unusually difficult year, we – together with the Group‘s entire management team – are focusing intensively on restoring the Group to profitability in the year ahead, to create value for our shareholders, clients and employees.

Oswald J. Grübel       John J. Mack

February 2003



CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q4/2002

Consolidated income statement
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Operating income 6'395 5'666 8'161 13 (22) 28'038 39'154 (28)
Gross operating profit 1'284 314 1'264 309 2 4'509 8'870 (49)
Net profit/(loss) (950) (2'148) (830) (56) 14 (3'309) 1'587

Return on equity
Change Change Change
in % from in % from 12 months in % from
in % 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Return on equity (13.0) (26.9) (9.3) (52) 40 (10.0) 4.1

Consolidated balance sheet
Change Change
in % from in % from
in CHF m 31.12.02 30.09.02 31.12.01 30.09.02 31.12.01
Total assets 955'656 999'158 1'022'513 (4) (7)
Shareholders‘ equity 31'394 32'461 38'921 (3) (19)
Minority interests in shareholders‘ equity 2'878 3'071 3'121 (6) (8)

Capital data
Change Change
in % from in % from
in CHF m 31.12.02 30.09.02 31.12.01 30.09.02 31.12.01
BIS risk-weighted assets 201'466 218'700 222'874 (8) (10)
BIS tier 1 capital 19'544 19'669 21'155 (1) (8)
of which non-cumulative perpetual preferred securities 2'162 2'218 2'076 (3) 4
BIS total capital 33'290 33'647 34'888 (1) (5)
Solvency capital Winterthur 10'528 10'127 8'555 4 23

Capital ratios
in % 31.12.02 30.09.02 31.12.01
BIS tier 1 ratio Credit Suisse 7.4 7.0 6.9
Credit Suisse First Boston 1) 10.3 11.9 12.9
Credit Suisse Group 2) 9.7 9.0 9.5
Credit Suisse Group (banking) 3) 10.0 9.4 8.8
BIS total capital ratio Credit Suisse Group 16.5 15.4 15.7
EU solvency margin Winterthur 167.5 155.1 128.6

Assets under management/client assets  4)
Change Change
in % from in % from
in CHF bn 31.12.02 30.09.02 31.12.01 30.09.02 31.12.01
Advisory assets under management 605.1 606.3 723.5 0 (16)
Discretionary assets under management 590.2 615.5 707.1 (4) (17)
Total assets under management 1'195.3 1'221.8 1'430.6 (2) (16)
Client assets 1'793.2 1'821.0 2'138.2 (2) (16)

Net new assets  4)
Change Change Change
in % from in % from 12 months in % from
in CHF bn 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Net new assets (6.6) (13.7) 18.5 (52) (2.6) 67.5
1) Ratio is based on a tier 1 capital of CHF 10.6 bn (30.09.02: CHF 13.3 bn; 31.12.01: CHF 15.2 bn), of which non-cumulative perpetual preferred securities is CHF 1.0 bn (30.09.02: CHF 1.1 bn; 31.12.01: CHF 1.1 bn).
2) Ratio is based on a tier 1 capital of CHF 19.5 bn (30.09.02: CHF 19.7 bn; 31.12.01: CHF 21.2 bn), of which non-cumulative perpetual preferred securities is CHF 2.2 bn (30.09.02: CHF 2.2 bn; 31.12.01: CHF 2.1 bn).
3) Ratio is based on a tier 1 capital of CHF 19.7 bn (30.09.02: CHF 20.2 bn; 31.12.01: CHF 19.4 bn), of which non-cumulative perpetual preferred securities is CHF 2.2 bn (30.09.02: CHF 2.2 bn; 31.12.01: CHF 2.1 bn).
4) Certain reclassifications have been made to conform to the current presentation.

Number of employees
Change Change
in % from in % from
31.12.02 30.09.02 31.12.01 30.09.02 31.12.01
Switzerland banking 21'270 21'700 21'794 (2) (2)
insurance 7'063 7'169 6'849 (1) 3
Outside Switzerland banking 25'057 26'586 28'415 (6) (12)
insurance 25'067 24'982 23'103 0 9
Total employees Credit Suisse Group 78'457 80'437 80'161 (2) (2)

Share data
Change Change
in % from in % from
31.12.02 30.09.02 31.12.01 30.09.02 31.12.01
Shares issued 1'189'891'720 1'189'348'956 1'196'609'811 0 (1)
To be issued upon conversion of MCS  1) 40'413'838 0 0
Shares repurchased  2) 0 0 7'730'000
Shares outstanding 1'230'305'558 1'189'348'956 1'188'879'811 3 3
Share price in CHF 30.00 28.90 70.80 4 (58)
Market capitalization in CHF m 36'909 34'372 84'173 7 (56)
Book value per share in CHF 23.18 24.71 29.92 (6) (23)
1) Maximum number of shares related to Mandatory Convertible Securities (MCS) issued by Credit Suisse Group Finance (Guernsey) Ltd.
2) Shares cancelled on 09.08.02, as previously approved by the Annual General Meeting.

Share price
Change Change Change
in % from in % from 12 months in % from
in CHF 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
High (closing price) 35.70 48.85 71.30 (27) (50) 73.60 87.00 (15)
Low (closing price) 20.60 26.80 51.60 (23) (60) 20.60 44.80 (54)

Earnings per share
Change Change Change
in % from in % from 12 months in % from
in CHF 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Basic earnings per share (0.80) (1.81) (0.70) (56) 14 (2.78) 1.33
Diluted earnings per share (0.80) (1.81) (0.69) (56) 16 (2.77) 1.32
 


    



AN OVERVIEW OF CREDIT SUISSE GROUP

Credit Suisse Group reported a net loss of CHF 950 million in the fourth quarter of 2002, compared with a net loss of CHF 2.1 billion in the third quarter of 2002. Credit Suisse Financial Services reported a net profit of CHF 705 million in the fourth quarter. Credit Suisse First Boston recorded a net loss of USD 811 million (CHF 1.3 billion) in the fourth quarter, including after-tax exceptional items totaling USD 813 million (CHF 1.3 billion). For the full year 2002, the Group posted a net loss of CHF 3.3 billion, compared with a net profit of CHF 1.6 billion in 2001. In spite of this unsatisfactory result, the Group is entering 2003 with a stronger balance sheet and an improved capital base.

Continuing financial market weakness and a number of exceptional items impacted Credit Suisse Group‘s results in the fourth quarter of 2002.

Winterthur's results recovered in the fourth quarter, with both Life & Pensions and Insurance returning to profitability due to a satisfactory operating performance and the positive impact of a change in accounting principles. Private Banking recorded a slightly higher profit than in the third quarter, despite project costs and low transaction-based income. Corporate & Retail Banking‘s profit was down versus the third quarter but up for the full year. Credit Suisse Financial Services reported a net profit of CHF 705 million in the fourth quarter, including exceptional items of CHF 73 million recognized in connection with the focusing of the European initiative on private banking clients. This compared with a net loss of CHF 1.2 billion in the third quarter 2002.

Credit Suisse First Boston posted a fourth quarter net loss of USD 811 million (CHF 1.3 billion), compared to a net loss of USD 425 million (CHF 679 million) in the previous quarter. This result reflects a pre-tax charge of USD 450 million (CHF 702 million) for private litigation involving research analyst independence, certain IPO allocation practices, Enron and other related litigation; a pre-tax charge of USD 150 million (CHF 234 million) for the agreement in principle with various US regulators involving research analyst independence and the allocation of IPO shares to executive officers; an after-tax loss of USD 250 million (CHF 390 million) in connection with the sale of Pershing; and a pre-tax restructuring charge of USD 204 million (CHF 319 million) in connection with Credit Suisse First Boston‘s USD 500 million cost reduction program. These combined items had a total pre-tax impact of USD 890 million (CHF 1.4 billion), or USD 813 million (CHF 1.3 billion) after tax, in the fourth quarter.

Credit Suisse Group announced a change in its accounting principles in the fourth quarter of 2002 to allow for the recognition of deferred tax assets with respect to net operating losses, resulting in a positive cumulative effect of CHF 520 million from prior years and CHF 1.3 billion for the financial year 2002. Additionally, CHF 778 million of the increase in loan loss provisions recorded by the Group in the fourth quarter relates to an adjustment in the method of estimating inherent losses related to lending activities, to better reflect the current credit environment. This was offset by a release of the reserve for general banking risks, which was reported as extraordinary income. After accounting for the Corporate Center, which includes writedowns on the Group‘s investments in Swiss International Airlines and Warburg Pincus Private Equity of CHF 112 million and CHF 134 million, respectively, Credit Suisse Group reported a net loss of CHF 950 million for the fourth quarter of 2002. This compared with a net loss of CHF 2.1 billion in the third quarter 2002 and a net loss of CHF 830 million in the fourth quarter of 2001. For the full year 2002, after accounting for the Corporate Center, which includes writedowns on the Group‘s participation in Swiss Life of CHF 539 million, in addition to the above-mentioned writedowns in the fourth quarter, the Group reported a net loss of CHF 3.3 billion, compared with a net profit of CHF 1.6 billion for the previous year. Earnings per share for 2002 amounted to a loss of CHF 2.78 versus a profit of CHF 1.33 for 2001, and the Group‘s return on equity was -10.0% versus 4.1% in 2001.

Equity capital
Credit Suisse Group‘s consolidated BIS tier 1 ratio stood at 9.7% as of December 31, 2002, up from 9.0% at the end of the third quarter of 2002. This was attributable to the issuance by the Group of Mandatory Convertible Securities of CHF 1.25 billion in December 2002, as well as to a reduction in risk-weighted assets and the currency translation effect of the lower US dollar versus the Swiss franc. The Mandatory Convertible Securities issue qualifies as equity capital and, accordingly, as tier 1 capital under BIS rules. The BIS tier 1 ratio for the Group‘s banking business stood at 10.0% as of December 31, 2002, up from 9.4% at the end of the third quarter. Winterthur‘s solvency margin (calculated in line with the EU directive) stood at 167% at the end of 2002, compared with 155% as of September 30, 2002.

The sale of Pershing to The Bank of New York, expected to close in the first half of 2003 subject to certain regulatory and other conditions, will increase the regulatory capital of Credit Suisse First Boston and Credit Suisse Group through the elimination of USD 500 million (CHF 695 million) of goodwill and a USD 1.6 billion (CHF 2.2 billion) reduction in risk-weighted assets. Furthermore, the sale will result in the elimination of USD 900 million (CHF 1.3 billion) of acquired intangible assets before tax, or USD 585 million (CHF 813 million) after tax.

The Group has strengthened its balance sheet and improved its capital base through the issuance of Mandatory Convertible Securities, the prudent management of risk-weighted assets, provisioning for inherent loan losses and litigation in the US, and the future impact on capital of the Pershing sale.

Net new assets
Credit Suisse Financial Services reported a net asset outflow of CHF 0.6 billion in the fourth quarter 2002, with net inflows of CHF 0.5 billion at Private Banking and of CHF 0.2 billion at Corporate & Retail Banking offset by a net outflow of CHF 1.3 billion from Life & Pensions. At Private Banking, net new assets declined versus the third quarter due mainly to the impact of increased attention surrounding Credit Suisse Group‘s financial performance in the course of 2002. Credit Suisse First Boston reported a net asset outflow of CHF 6.0 billion in the fourth quarter, as a CHF 2.7 billion net inflow of private client assets was offset by a net outflow of CHF 8.7 billion from Credit Suisse Asset Management related primarily to performance issues. For Credit Suisse Group, an overall net asset outflow of CHF 6.6 billion was recorded in the fourth quarter, compared with a net outflow of CHF 13.7 billion in the third quarter 2002. For the full year 2002, the Group reported a net asset outflow of CHF 2.6 billion, as CHF 18.9 billion in net new assets reported by Credit Suisse Financial Services – related primarily to Private Banking – were offset by outflows of CHF 21.5 billion from Credit Suisse First Boston. The Group‘s total assets under management stood at CHF 1,195.3 billion as of December 31, 2002, corresponding to a decline of 2.2% versus September 30, 2002, and a decrease of 16.4% versus year-end 2001.

Operating income and expenses
The Group‘s operating income stood at CHF 6.4 billion in the fourth quarter 2002, up 13% on the previous quarter but down 22% on the fourth quarter of 2001. Credit Suisse Financial Services reported a 54% increase in operating income to CHF 3.5 billion versus the third quarter, reflecting a CHF 1.2 billion increase in operating income in the insurance business and stable operating income in banking. At Private Banking, operating income rose 3% to CHF 1.5 billion but remained below the average of the previous quarters due to investor inactivity and a reduced asset base. Corporate & Retail Banking posted a 7% decrease in operating income quarter- on-quarter due, in particular, to a decrease in transaction-related commission income. At Credit Suisse First Boston, fourth quarter operating income was down 11% on the previous quarter to USD 2.4 billion (CHF 3.4 billion), mainly reflecting revenue declines in the Fixed Income and Equity businesses, as well as at CSFB Financial Services. For the full year 2002, the Group‘s operating income stood at CHF 28.0 billion, down 28% on the previous year.

Including restructuring charges presented as exceptional items at the business units, the Group‘s operating expenses decreased 5% quarter-on-quarter to CHF 5.1 billion, and were down 26% on the fourth quarter 2001. At Credit Suisse Financial Services, fourth quarter operating expenses remained stable quarter-on-quarter and year-on-year despite expansion in certain markets. At Credit Suisse First Boston, fourth quarter operating expenses decreased 14% in US dollar terms versus the third quarter and were down 13% on the fourth quarter of 2001, reflecting continued efforts to adapt the business unit‘s cost structure to the current environment. The Group‘s full year operating expenses declined 22% versus 2001 to CHF 23.5 billion, primarily as a result of headcount reductions, a significant decrease in bonuses and the sale of non-core businesses.

Valuation adjustments, provisions and losses
Fourth quarter valuation adjustments, provisions and losses include a charge of CHF 778 million relating to an adjustment in the method of estimating inherent losses related to lending activities. This adjustment was considered necessary to better reflect in the loan provision the continued deterioration of the credit markets. The impact on the income statement of this charge, after tax, was offset by a release from the reserve for general banking risks, which was recorded as extraordinary income. Excluding the provision for inherent loan losses, credit provisions were CHF 637 million in the fourth quarter 2002, down 22% versus the third quarter, and were CHF 2.3 billion for the full year 2002, up 34% versus 2001, reflecting the deterioration in the credit environment globally.

Overall, total valuation adjustments, provisions and losses were CHF 2.4 billion in the fourth quarter, reflecting the provision for inherent loan losses, US legal provisions, and increased valuation adjustments and losses.

Recognition of deferred tax assets on net operating losses
Credit Suisse Group changed its accounting principles in the fourth quarter of 2002 to allow for the recognition of deferred tax assets on net operating losses. As a result of this change, a positive cumulative effect of CHF 520 million was recognized from prior years and CHF 1.3 billion for 2002. At Credit Suisse Financial Services, fourth quarter net profit benefited from the first-time recognition of deferred tax assets on net operating losses in the amount of CHF 472 million for 2002, as well as a cumulative effect of CHF 266 million from prior years, primarily at Winterthur. At Credit Suisse First Boston, the fourth quarter net result reflects a benefit of USD 556 million (CHF 868 million) related to 2002, as well as a positive cumulative effect of USD 162 million (CHF 254 million) from prior years.

Dividend proposal
The Group‘s Board of Directors has decided to propose a dividend of CHF 0.10 per share to the Annual General Meeting on April 25, 2003. This compares to a par value reduction of CHF 2 per share for the financial year 2001. If approved by the Annual General Meeting on April 25, 2003, this dividend will be paid out on May 2, 2003.

Outlook
Credit Suisse Group remains cautious in its outlook for 2003 given the continued challenging market environment and global uncertainty. The Group continues to expect that the measures taken during 2002, as well as those being implemented in 2003, will restore its profitability in 2003. Additionally, the Group is entering 2003 with a stronger balance sheet and an improved capital base.

Overview of business unit results  1)
Credit Suisse Financial Services Credit Suisse First Boston Adjust. incl. Corporate Center Credit Suisse Group
in CHF m 4Q2002 3Q2002 4Q2001 4Q2002 3Q2002 4Q2001 4Q2002 3Q2002 4Q2001 4Q2002 3Q2002 4Q2001
Operating income 3'517 2'289 3'582 3'321 3'757 4'572 (443) (380) 7 6'395 5'666 8'161
Personnel expenses 1'408 1'490 1'244 1'896 2'179 3'174 160 124 207 3'464 3'793 4'625
Other operating expenses 896 884 1'065 1'184 1'157 1'747 (433) (482) (540) 1'647 1'559 2'272
Operating expenses 2'304 2'374 2'309 3'080 3'336 4'921 (273) (358) (333) 5'111 5'352 6'897
Gross operating profit/(loss) 1'213 (85) 1'273 241 421 (349) (170) (22) 340 1'284 314 1'264
Depreciation of non-current assets  2) 334 289 296 156 209 282 144 94 121 634 592 699
Amortization of acquired intangible assets and goodwill 92 31 52 308 308 379 3 (2) (4) 403 337 427
Valuation adjustments, provisions and losses 105 91 48 1'977 867 1'207 342 15 34 2'424 973 1'289
Profit/(loss) before extraordinary items, cumulative effect of change in accounting principle and taxes 682 (496) 877 (2'200) (963) (2'217) (659) (129) 189 (2'177) (1'588) (1'151)
Extraordinary income/(expenses), net 24 6 8 220 (1) 0 125 (136) (265) 369 (131) (257)
Cumulative effect of change in accounting principle  3) 266 254 0 520
Taxes  3) (318) (692) (150) 474 285 633 162 (3) 55 318 (410) 538
Net profit/(loss) before minority interests 654 (1'182) 735 (1'252) (679) (1'584) (372) (268) (21) (970) (2'129) (870)
Minority interests 51 17 22 0 0 (1) (31) (36) 19 20 (19) 40
Net profit/(loss) 3) 705 (1'165) 757 (1'252) (679) (1'585) (403) (304) (2) (950) (2'148) (830)
1) The Group‘s consolidated results are prepared in accordance with Swiss GAAP, while the Group‘s segment reporting principles are applied to the presentation of segment results. The business unit results reflect the results of the separate segments comprising the respective business units as well as certain acquisition-related costs and exceptional items that are not allocated to the segments. For a complete reconciliation of the business unit results to the Group‘s consolidated results and a discussion of the material reconciling items, please refer to pages 33-36.
2) Includes amortization of Present Value of Future Profits (PVFP) from the insurance business within Credit Suisse Financial Services.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes in 4Q2002 would have been CHF -790 m for Credit Suisse Financial Services, CHF -394 m for Credit Suisse First Boston and CHF -1,023 m for Credit Suisse Group. The retroactive application of this change in accounting principle would have resulted in taxes for 4Q2002, 3Q2002 and 4Q2001 for Credit Suisse Financial Services of CHF -635 m, CHF -593 m and CHF -209 m, respectively, for Credit Suisse First Boston of CHF 276 m, CHF 290 m and CHF 909 m, respectively, and for Credit Suisse Group of CHF -198 m, CHF -306 m and CHF 755 m, respectively.

Assets under management/client assets
Change Change
in % from in % from
in CHF bn 31.12.02 30.09.02 31.12.01 30.09.02 31.12.01
Credit Suisse Financial Services
Private Banking
Assets under management 488.0 494.5 546.8 (1.3) (10.8)
of which discretionary 121.6 123.8 131.5 (1.8) (7.5)
Client assets 518.0 526.7 583.3 (1.7) (11.2)
Corporate & Retail Banking
Assets under management 48.0 47.8 55.9 0.4 (14.1)
Client assets 63.1 63.1 73.3 0.0 (13.9)
Life & Pensions
Assets under management (discretionary) 110.8 113.0 115.2 (1.9) (3.8)
Client assets 110.8 113.0 115.2 (1.9) (3.8)
Insurance
Assets under management (discretionary) 30.7 31.1 30.5 (1.3) 0.7
Client assets 30.7 31.1 30.5 (1.3) 0.7
Credit Suisse Financial Services
Assets under management 677.5 686.4 748.4 (1.3) (9.5)
of which discretionary 264.7 269.2 278.9 (1.7) (5.1)
Client assets 722.6 733.9 802.3 (1.5) (9.9)
Credit Suisse First Boston
Institutional Securities
Assets under management 31.3 35.2 41.7 (11.1) (24.9)
of which Private Equity on behalf of clients (discretionary) 20.9 24.7 29.3 (15.4) (28.7)
Client assets 83.9 86.8 121.7 (3.3) (31.1)
CSFB Financial Services
Assets under management 486.5 500.2 640.5 (2.7) (24.0)
of which discretionary 297.2 313.8 393.6 (5.3) (24.5)
Client assets 986.7 1'000.3 1'214.2 (1.4) (18.7)
Credit Suisse First Boston
Assets under management 517.8 535.4 682.2 (3.3) (24.1)
of which discretionary 325.5 346.3 428.2 (6.0) (24.0)
Client assets 1'070.6 1'087.1 1'335.9 (1.5) (19.9)
Credit Suisse Group
Assets under management 1'195.3 1'221.8 1'430.6 (2.2) (16.4)
of which discretionary 590.2 615.5 707.1 (4.1) (16.5)
Client assets 1'793.2 1'821.0 2'138.2 (1.5) (16.1)

Net new assets
Change Change Change
in % from in % from 12 months in % from
in CHF bn 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Credit Suisse Financial Services
Private Banking 0.5 3.4 8.6 (85.3) (94.2) 18.7 35.7 (47.6)
Corporate & Retail Banking 0.2 (2.3) 0.9 (77.8) (3.2) 1.3
Life & Pensions (1.3) 0.4 1.8 3.4 5.0 (32.0)
Credit Suisse Financial Services (0.6) 1.5 11.3 18.9 42.0 (55.0)
Credit Suisse First Boston
Institutional Securities (3.0) 0.5 1.9 0.5 280.0
CSFB Financial Services  1) (6.0) (12.2) 6.7 (50.8) (23.4) 25.0
Credit Suisse First Boston (6.0) (15.2) 7.2 (60.5) (21.5) 25.5
Credit Suisse Group (6.6) (13.7) 18.5 (51.8) (2.6) 67.5

Certain reclassifications have been made to conform to the current presentation.









1) Net new discretionary assets for institutional asset management.

Group Executive Board, effective January 1, 2003

Oswald J. Grübel Co-CEO Credit Suisse Group; Chief Executive Officer Credit Suisse Financial Services

John J. Mack Co-CEO Credit Suisse Group; Chief Executive Officer Credit Suisse First Boston

Hans-Ulrich Doerig Vice-Chairman of the Group Executive Board; Head of Corporate Center, Credit Suisse Group

Brady W. Dougan Co-President, Institutional Securities, Credit Suisse First Boston

Brian D. Finn Co-President, Institutional Securities, Credit Suisse First Boston

David P. Frick General Counsel, Credit Suisse Group

Ulrich Körner Chief Financial Officer, Credit Suisse Financial Services

Jeffrey M. Peek Head of CSFB Financial Services, Credit Suisse First Boston

Philip K. Ryan Chief Financial Officer, Credit Suisse Group

Richard E. ThornburghChief Risk Officer, Credit Suisse Group

Stephen R. Volk Chairman, Credit Suisse First Boston

Alex W. Widmer Head of Private Banking, Credit Suisse Financial Services





RISK MANAGEMENT

Credit Suisse Group‘s overall position risks fell by 9% in the fourth quarter 2002 versus the previous quarter, predominantly due to further equity position reductions, lower foreign exchange risks and a substantial reduction of exposures in Brazil. Credit Suisse First Boston‘s average trading risks were lower as a consequence of reduced credit spread positions. The Group‘s credit risk exposures declined by 6% quarter-on-quarter.

Overall risk trends
Economic Risk Capital (ERC) is an emerging best practice tool for measuring and reporting all quantifiable risks across a financial organization on a consistent and comprehensive basis. It is referred to as “economic” because it treats positions solely on an economic basis, irrespective of differences in accounting or regulatory treatment. Credit Suisse Group has invested significant resources in developing this tool over the last few years to achieve several objectives: to better assess the composition and trend of our risk portfolio; to provide a benchmark for risk/return analysis by business; to improve risk control and limits; to support a target credit rating; and to allocate capital. ERC is defined as the economic capital needed to remain solvent even under extreme market, business and operational conditions, based on conservative assumptions.

Credit Suisse Group distinguishes between three fundamental sources of risk. Position risk ERC measures the potential unexpected loss in economic value associated with the Group‘s portfolio of positions over a one-year horizon that is exceeded with a given, small probability (1% for daily risk management purposes; 0.03% for capital management purposes). Business risk ERC captures the risk related to the Group‘s commission and fee-based activities by estimating the potential worst-case negative margin that these activities might experience during a severe market downturn. Operational risk ERC represents the estimated worst-case loss resulting from inadequate or failed internal processes and systems, human error or external events.

Position risk ERC constitutes the most important risk category and comprises more than 80% of the overall risk profile. Total 99%, 1-year position risk ERC was down 9% in the fourth quarter 2002 compared with the previous quarter, due primarily to further equity position reductions and reductions in the foreign exchange and emerging markets areas. As highlighted in the table below, Credit Suisse Group has substantially reduced its position risk profile over the course of 2002, predominantly through a significant reduction in its equity market-related risks. Other notable developments include a substantial reduction in emerging market risks, due mainly to lower positions in Brazil, and a material reduction in foreign exchange rate risks, primarily due to a reduction of the foreign exchange risks embedded in the investment portfolios of the Winterthur units. At the end of the fourth quarter of 2002, 53% of the Group‘s position risk ERC was with Credit Suisse First Boston, 42% with Credit Suisse Financial Services (of which 66% was with the insurance units and 34% was with the banking units) and 5% with the Corporate Center.


Key Position Risk Trends
In CHF m

Change in % from

Change Analysis: Brief Summary
4Q2002 3Q2002 4Q2001 4Q2002 vs 3Q2002
Interest Rate, Credit Spread & Foreign Exchange ERC 3'666 (15%) (21%) Driven by a reduction in foreign exchange risk at the Winterthur units
Equity Investment ERC 3'674 (9%) (65%) Driven by the sale of strategic investments
Swiss & Retail Lending ERC 2'097 0% (9%) No material change
International Lending ERC 3'840 (2%) (4%) No material change
Emerging Markets ERC 1'977 (15%) (26%) Predominantly from position reductions in Brazil
Real Estate ERC & Structured Asset ERC  1) 3'953 (8%) (10%) Continued reduction in legacy commercial real estate exposures in the US
Insurance Underwriting ERC 819 (2%) 9% Sale of Winterthur Portugal
Simple Sum across Risk Categories 20'025 (8%) (32%) Lower Equity and Emerging Markets ERC
Diversification Benefit (6'723) (7%) (41%) In line with overall risk reduction
Total Position Risk ERC 13'303 (9%) (26%) Lower Equity and Emerging Markets ERC

For a more detailed description of the Group‘s ERC model, please refer to our Annual Report 2001, which is available on our website www.credit-suisse.com. Note that comparatives have been restated for methodology changes in order to maintain consistency over time.





1) This category comprises the Real Estate investments of Winterthur, CSFB‘s Commerical Real Estate exposures, CSFB‘s Residential Real Estate exposures, CSFB‘s Asset-Backed-Securities exposures as well as the Real Estate Acquired at Auction and Real Estate For Own Use in Switzerland.

Trading risks
The average 1-day, 99% VaR at Credit Suisse First Boston in the fourth quarter of 2002 was USD 39.4 million compared to USD 43.7 million during the third quarter of 2002. The VaR reduction during the fourth quarter was attributable to a reduction in overall credit spread positions. As shown in the backtesting chart, Credit Suisse First Boston had no backtesting exceptions in the fourth quarter of 2002. Over the last 12 months, Credit Suisse First Boston had one backtesting exception (on average, an accurate 1-day, 99% VaR model would have 2.5 exceptions per annum).

Credit risk exposure
Credit risk exposure declined across nearly all product areas at both business units during the fourth quarter 2002, with a total reduction for the Group of 6% quarter-on-quarter. Credit risk exposures at Credit Suisse Financial Services were slightly lower across all product areas. The decrease at Credit Suisse First Boston was due partially to a weakening of the US dollar as well as a reduction in lending products.

There was an overall increase in impaired loans for the Group versus the end of the third quarter due to a reclassification of the BZ Group exposure from a repurchase agreement to a loan. Excluding this reclassification, impaired loans across the Group declined during the fourth quarter 2002. The increase in non-performing loans at Credit Suisse First Boston was partially offset by a decrease in non-performing loans at Credit Suisse Financial Services. While coverage of non-performing loans deteriorated, coverage of impaired loans improved during the fourth quarter 2002. The quality of the Group‘s credit risk exposure remained stable during the fourth quarter 2002 versus the previous quarter and year-end 2001.

 


CSFB trading exposures (99% 1-day VaR)
in USD m 4Q2002 3Q2002 2Q2002 1Q2002
Total VaR
Period end 41.3 38.9 59.3 52.5
Average 39.4 43.7 46.4 49.2
Maximum 46.5 57.4 59.3 61.2
Minimum 31.9 37.6 36.8 40.2
in USD m 31.12.02 30.09.02 30.06.02 31.03.02
VaR by risk type
Interest rate 48.3 59.3 54.7 59.7
Foreign exchange 10.8 7.6 18.7 7.5
Equity 10.1 12.1 16.5 17.2
Commodity 1.0 1.2 0.5 0.6
Subtotal 70.2 80.2 90.4 85.0
Diversification benefit (28.9) (41.3) (31.1) (32.5)
Total 41.3 38.9 59.3 52.5

Credit Suisse First Boston computes these VaR estimates separately for each risk type and for the whole portfolio using the historical simulation methodology. Diversification benefit reflects the net difference between the sum of the 99% percentile loss for each risk type and for the total portfolio.






Total credit risk exposure  1)
Credit Suisse Financial Services Credit Suisse First Boston Credit Suisse Group
in CHF m 31.12.02 30.09.02 31.12.01 31.12.02 30.09.02 31.12.01 31.12.02 30.09.02 31.12.01
Due from banks  2) 32'752 34'085 35'560 44'016 49'626 40'931 39'469 44'927 40'084
Due from customers and mortgages  2) 132'353 134'324 134'796 82'395 88'676 87'438 213'206 221'907 221'108
Total due from banks and customers, gross 2) 165'105 168'409 170'356 126'411 138'302 128'369 252'675 266'834 261'192
Contingent liabilities 12'349 12'429 13'849 27'862 29'826 32'286 39'104 40'998 43'586
Irrevocable commitments 1'763 1'843 945 84'287 96'938 128'918 86'051 98'781 129'864
Total banking products 179'217 182'681 185'150 238'560 265'066 289'573 377'830 406'613 434'642
Derivative instruments  3) 2'375 1'906 1'635 54'243 60'967 51'160 54'757 61'356 51'029
Securities lending – banks 0 291 0 0 0 71 0 291 71
Securities lending – customers 0 0 0 64 15 5 64 15 5
Reverse repurchase agreements – banks 2'270 2'631 968 158'544 157'989 165'930 156'397 155'916 163'666
Reverse repurchase agreements – customers 13'944 14'976 7'122 57'571 62'339 59'801 71'384 77'315 66'921
Total traded products 18'589 19'804 9'725 270'422 281'310 276'967 282'602 294'893 281'692
Total credit risk exposure, gross 197'806 202'485 194'875 508'982 546'376 566'540 660'432 701'506 716'334
Loan valuation allowances and provisions (4'092) (4'014) (5'717) (3'817) (3'538) (3'638) (7'911) (7'554) (9'357)
Total credit risk exposure, net 193'714 198'471 189'158 505'165 542'838 562'902 652'521 693'952 706'977
1) Credit Suisse Financial Services/Credit Suisse First Boston reflect business unit amounts. Total consolidated Credit Suisse Group amounts include adjustments and Corporate Center.
2) Excluding securities lending and reverse repurchase transactions.
3) Positive replacement values considering netting agreements.

Total loan portfolio exposure and allowances and provisions for credit risk  1)
Credit Suisse Financial Services Credit Suisse First Boston Credit Suisse Group
in CHF m 31.12.02 30.09.02 31.12.01 31.12.02 30.09.02 31.12.01 31.12.02 30.09.02 31.12.01
Non-performing loans 3'004 3'412 4'893 3'351 2'104 3'067 6'355 5'516 7'960
Non-interest earning loans 2'108 2'087 2'331 217 274 476 2'325 2'361 2'808
Total non-performing loans 5'112 5'499 7'224 3'568 2'378 3'543 8'680 7'877 10'768
Restructured loans 52 75 114 229 236 0 281 311 114
Potential problem loans 1'723 1'702 2'199 1'685 2'405 2'484 3'408 4'107 4'683
Total other impaired loans 1'775 1'777 2'313 1'914 2'641 2'484 3'689 4'418 4'797
Total impaired loans 6'887 7'276 9'537 5'482 5'019 6'027 12'369 12'295 15'565
Due from banks and customers, gross 165'105 168'409 170'356 126'411 138'302 128'369 252'675 266'834 261'192
Valuation allowances 4'053 3'999 5'709 3'647 3'376 3'553 7'703 7'377 9'264
of which on principal 3'201 3'092 4'324 3'416 3'132 3'227 6'617 6'224 7'553
of which on interest 852 907 1'385 231 244 326 1'086 1'153 1'711
Due from banks and customers, net 161'052 164'410 164'647 122'764 134'926 124'816 244'972 259'457 251'928
Provisions for contingent liabilities and irrevocable commitments 39 15 8 170 162 85 208 177 93
Total valuation allowances and provisions 4'092 4'014 5'717 3'817 3'538 3'638 7'911 7'554 9'357
Ratios
Valuation allowances as % of total non-performing loans 79.3% 72.7% 79.0% 102.2% 142.0% 100.3% 88.7% 93.7% 86.0%
Valuation allowances as % of total impaired loans 58.9% 55.0% 59.9% 66.5% 67.3% 59.0% 62.3% 60.0% 59.5%
1) Credit Suisse Financial Services/Credit Suisse First Boston reflect business unit amounts. Total consolidated Credit Suisse Group amounts include adjustments and Corporate Center.



REVIEW OF BUSINESS UNITS | CREDIT SUISSE FINANCIAL SERVICES

Credit Suisse Financial Services recorded a net profit of CHF 705 million and a net operating profit, excluding the amortization of acquired intangible assets, goodwill, exceptional items and the cumulative effect of a change in accounting principles, of CHF 535 million in the fourth quarter of 2002. Winterthur returned to profitability due to a satisfactory operating performance and the positive impact of a change in accounting principles. Private Banking recorded a slightly higher profit than in the third quarter, despite project costs and low transaction-based income. For the full year 2002, Credit Suisse Financial Services recorded a net loss of CHF 165 million and a net operating loss of CHF 136 million.

Credit Suisse Financial Services recorded a net profit of CHF 705 million in the fourth quarter of 2002 and a net loss of CHF 165 million for the full year, versus a net profit of CHF 3.6 billion for 2001. The insurance segments reported investment income of CHF 1.4 billion in 2002, compared to CHF 7.0 billion in 2001. The lower investment income had a CHF 3.3 billion impact on net operating profit (CHF 1.6 billion for Life & Pensions and CHF 1.7 billion for Insurance) compared with 2001. In the fourth quarter of 2002, Credit Suisse Financial Services’ net profit benefited from the recognition of deferred tax assets on net operating losses as a result of a change in accounting principles in the amount of CHF 472 million for the financial year 2002, as well as the cumulative effect of CHF 266 million from prior years, primarily at Winterthur. Exceptional items of CHF 73 million were recognized in the fourth quarter of 2002 as a result of focusing the European initiative on private banking clients. For the full year 2002, exceptional items totaled CHF 192 million.

Assets under management declined 1.3% to CHF 677.5 billion in the fourth quarter 2002 and were down 9.5% versus year-end 2001 due primarily to weak equity markets and the foreign exchange impact. The business unit recorded a CHF 0.6 billion net outflow of assets in the fourth quarter of 2002. A net asset inflow in the banking units was more than offset by an outflow at Life & Pensions, reflecting selective underwriting and renewals. For the full year 2002, Credit Suisse Financial Services reported net new assets of CHF 18.9 billion, corresponding to 2.5% of assets under management.

Private Banking
In the fourth quarter of 2002, Private Banking reported a segment profit of CHF 339 million, up 12% versus the previous quarter, and of CHF 1.8 billion in 2002, down 23% versus 2001. The net margin stood at 33.7 bp in 2002, compared with 42.3 bp in 2001. Operating income rose 3% versus the third quarter to CHF 1.5 billion, but was still below the average of the previous quarters due to investor passivity and a reduced asset base. In 2002, operating income stood at CHF 6.5 billion, down 11% on 2001. Operating expenses increased 2% against the previous quarter, due mainly to project costs. In 2002, operating expenses decreased CHF 162 million or 4% versus the previous year.

Net new assets amounted to CHF 0.5 billion in the fourth quarter of 2002, impacted by increased attention surrounding Credit Suisse Group‘s financial performance in the course of 2002. In 2002, net new assets of CHF 18.7 billion were recorded, corresponding to 3.4% of assets under management, versus CHF 35.7 billion in 2001. At year-end 2002, assets under management stood at CHF 488.0 billion, down 10.8% versus year-end 2001 and down 1.3% versus September 30, 2002, due mainly to market performance and the foreign exchange impact.

Private Banking further realigned its European initiative during the fourth quarter of 2002 to focus on high-net-worth individuals and reduce the significant cost of pursuing a broader strategy. In Switzerland, the realignment of the private client business was implemented as of January 1, 2003. This entailed moving certain client segments in Switzerland from Private Banking to Corporate & Retail Banking to better focus the Swiss platform and delivery of services. In Asia, the Middle East and Latin America, Private Banking continued to achieve above-average growth. Furthermore, Clariden Bank acquired PBS Privat Bank Schweiz in November 2002.

In the fourth quarter 2002, Private Banking again launched a number of innovative products, including its Total Performance Strategy (TOPS), which are short-term bond funds with a reduced interest rate risk, and the PODIUM note, a bear market product based on a basket of selected stocks, offering bond-like capital protection.

The lower asset base of Private Banking at year-end 2002 will negatively affect operating income in 2003. The management of costs will therefore remain a high priority for Private Banking.

Corporate & Retail Banking
Corporate & Retail Banking posted a segment profit of CHF 46 million in the fourth quarter 2002, down 55% on the previous quarter, and of CHF 363 million in 2002, up 19% versus the previous year. Operating income declined 7% quarter-on-quarter due, in particular, to a decrease in transaction-related commission income. Compared with the previous year, operating income increased by 2%.

In 2002, the net interest margin stood at 235 bp, up from 226 bp in 2001. The net asset outflow of CHF 3.2 billion in 2002 was mainly attributable to volatility in the account balances of corporate clients. Assets under management stood at CHF 48.0 billion at year-end 2002. Fourth quarter operating expenses rose 8% versus the previous quarter to CHF 421 million. This increase was mainly attributable to project costs. However, cost reduction measures resulted in lower operating expenses for the full year, down 2% to CHF 1.6 billion. The cost/income ratio stood at 68.7% in 2002, compared with 71.1% in 2001. The return on average allocated capital increased 1.5 percentage points compared to 2001, to stand at 9.3%.

The overall risk profile of the credit portfolio improved in 2002 as a result of a cautious lending policy and active credit portfolio management. However, the provisions recorded were CHF 127 million above the statistical valuation adjustments due, in particular, to exceptional additional provisions on account of the anticipated liquidation of certain positions.

The realignment of the Swiss private client business was implemented as of January 1, 2003. This entailed moving certain client segments in Switzerland from Private Banking to Corporate & Retail Banking to better focus the Swiss platform and delivery of services. Direct Trade Finance, a platform offering efficient, centralized access to all trade finance transactions online, was launched in the fourth quarter of 2002. In the future, Credit Suisse will concentrate its online banking products and services on its core offering, Direct Net. The online brokerage service youtrade was therefore discontinued as of the end of January 2003.

Due to the prevailing weak economic environment, Corporate & Retail Banking remains cautious about its outlook for 2003. The segment does not anticipate volume growth in the corporate banking business, and higher credit losses may occur. As a consequence, Corporate & Retail Banking will continue to strictly control expenses.

Life & Pensions
Life & Pensions reported a segment loss of CHF 1.4 billion for the full year 2002 and a segment profit of CHF 93 million for the fourth quarter. The full year loss reflects a CHF 3.3 billion decline in investment income, with an impact on the segment result of CHF 1.6 billion compared to 2001. The fourth quarter investment income amounted to CHF 333 million, up 8% versus the previous quarter, and improved in particular in countries where the investment risk is mainly borne by Life & Pensions. Equity exposure was reduced from 19% as of December 31, 2001, to 8% as of December 31, 2002. A large proportion of the existing exposure reflects a direct participation by the policyholders, decreasing the impact on results and earnings volatility. The fourth quarter result benefited from the first-time recognition of deferred tax assets on net operating losses in the amount of CHF 220 million for 2002.

Life & Pensions reported gross premiums written of CHF 19.0 billion for 2002, reflecting 9% growth (10% adjusted for acquisitions, divestitures and exchange rate impacts) versus 2001. The units in Switzerland, the UK and Italy were the main contributors to this significant growth. New business accounted for 39% of the gross premiums written in 2002. Net new assets amounted to CHF 3.4 billion for the year, versus CHF 5.0 billion in 2001. The net asset outflow of CHF 1.3 billion in the fourth quarter 2002 reflects the move towards selective underwriting and renewals.

Operating expenses, comprising acquisition and non-deferrable costs, amounted to CHF 2.2 billion in 2002, up CHF 311 million versus 2001, reflecting the strong premium growth and additional DAC (deferred acquisition costs) and PVFP (present value of future profits) writedowns of CHF 292 million due to a change in the long-term assumptions regarding investment income. Excluding these writedowns, the expense ratio for 2002 was 9.9%, down from 10.9% in 2001. Including these writedowns, the expense ratio for 2002 stood at 11.5%.

In 2002, Life & Pensions finalized the divestiture of its French and Austrian operations, announced the sale of its operations in Portugal, and acquired the business of Premier Life Ltd.

The Swiss government‘s reduction of the guaranteed rate of return for the employee benefit business from 4% to 3.25%, effective January 1, 2003, will only partially alleviate the impact of the adverse business environment for group life insurers.

Life & Pensions remains exposed to the volatility of the financial markets due to the nature of its business. However, through the implementation of cost reduction measures as well as efforts to increase its share of capital-light products and to focus on its core markets, it aims to mitigate the impact of market volatility.

Insurance
Insurance reported a segment loss of CHF 992 million in 2002 and a segment profit of CHF 6 million for the fourth quarter. The full year loss reflects a CHF 2.2 billion decline in investment income, with an impact on the segment result of CHF 1.7 billion compared to 2001. Investment income amounted to CHF 59 million in the fourth quarter. Insurance reduced its proportion of equity investments from 17% as of December 31, 2001, to 7% as of December 31, 2002. The fourth quarter result benefited from the first-time recognition of deferred tax assets on net operating losses in the amount of CHF 276 million but was adversely affected by charges for discontinued and divested businesses with an impact on the segment result of CHF 90 million.

In 2002, Insurance increased its net premiums earned by 5% (9% adjusted for acquisitions, divestitures and exchange rate impacts), due in part to strong rate increases.

Insurance reported a significant improvement of CHF 720 million in its underwriting results in 2002. This improvement was due primarily to a decrease in the combined ratio of 2.2 percentage points, from 105.6% in 2001 to 103.4% in 2002. The claims ratio improved 1.9 percentage points to 74.8% in 2002, due to clear progress in North America, the UK, and Italy as well as Insurance‘s withdrawal from lines and businesses where performance was unsatisfactory. The motor insurance business produced particularly good results, with an improvement in the claims ratio of more than 6 percentage points. The claims ratio in Switzerland and Germany deteriorated in 2002 – primarily in the fourth quarter – due to storms and flooding. In 2002, the segment‘s expense ratio improved by 0.3 percentage points versus the previous year to 28.6%, following cost saving measures. Despite this progress, further measures are planned to reduce administration costs.

In 2002, Insurance finalized the divestitures of its French and Austrian operations and announced the sale of its Portuguese operations. With a favorable pricing environment in insurance markets, continuing initiatives to reduce costs and the withdrawal from businesses with unsatisfactory results, Insurance believes it is positioned to return to profitability in 2003 based on current investment income.

Credit Suisse Financial Services business unit income statement  1)
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Operating income 2) 3'517 2'289 3'582 54 (2) 11'830 15'382 (23)
Personnel expenses 1'405 1'443 1'244 (3) 13 5'765 5'639 2
Other operating expenses 897 845 1'065 6 (16) 3'465 3'686 (6)
Operating expenses 2'302 2'288 2'309 1 0 9'230 9'325 (1)
Gross operating profit 1'215 1 1'273 (5) 2'600 6'057 (57)
Depreciation of non-current assets 256 141 218 82 17 733 581 26
Amortization of Present Value of Future Profits (PVFP) 62 119 78 (48) (21) 267 237 13
Valuation adjustments, provisions and losses 105 91 48 15 119 390 383 2
Net operating profit/(loss) before extraordinary and exceptional items, cumulative effect of change in accounting principle and taxes 792 (350) 929 (15) 1'210 4'856 (75)
Extraordinary income/(expenses), net 24 6 8 300 200 48 25 92
Taxes 3) 4) (332) (693) (151) (52) 120 (1'525) (1'113) 37
Net operating profit/(loss) before exceptional items, cumulative effect of change in accounting principle and minority interests 484 (1'037) 786 (38) (267) 3'768
Amortization of acquired intangible assets and goodwill (37) (27) (52) 37 (29) (139) (116) 20
Exceptional items (73) (119) 0 (39) (192) 0
Tax impact 14 1 1 16 2
Cumulative effect of change in accounting principle  3) 266 266
Net profit/(loss) before minority interests 654 (1'182) 735 (11) (316) 3'654
Minority interests 51 17 22 200 132 151 (69)
Net profit/(loss) 705 (1'165) 757 (7) (165) 3'585
1) Certain reclassifications have been made to conform to the current presentation. The business unit results reflect the results of the separate segments comprising the business unit. Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill, exceptional items and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results. The exceptional items relate to focusing the European initiative on private banking clients. For a complete reconciliation of the business unit results to the Group‘s consolidated results and a discussion of the material reconciling items, please refer to pages 33-36.
2) For the purpose of the consolidated financial statements, operating income for the insurance business is defined as net premiums earned, less claims incurred and change in technical provisions and expenses for processing claims, less commissions, plus net investment income from the insurance business.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes would have been CHF -804 m for 4Q2002. The retroactive application of this change in accounting principle would have resulted in taxes for 4Q2002, 3Q2002 and 4Q2001 of CHF -649 m, CHF -594 m and CHF -210 m, respectively, and CHF-1,153 m for the 12 months 2001.
4) Excluding tax impact on amortization of acquired intangible assets and goodwill as well as exceptional items.

Reconciliation to net operating profit/(loss)
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Net profit/(loss) 705 (1'165) 757 (7) (165) 3'585
Amortization of acquired intangible assets and goodwill  1) 37 27 52 37 (29) 119 116 3
Exceptional items 73 119 0 (39) 192 0
Tax impact (14) (1) (1) (16) (2)
Cumulative effect of change in accounting principle (266) (266)
Net operating profit/(loss) 535 (1'020) 808 (34) (136) 3'699
1) Excluding a CHF 20 m write-off in 2Q2002 relating to a participation.

Credit Suisse Financial Services business unit key information
12 months
4Q2002 3Q2002 4Q2001 2002 2001
Cost/income ratio  1) 75.0% 116.3% 72.7% 87.6% 65.9%
Cost/income ratio (operating)  2) 3) 72.7% 106.1% 70.5% 84.2% 64.4%
Cost/income ratio (operating), banking  2) 71.1% 69.4% 65.7% 65.1% 61.6%
Return on average allocated capital  1) 20.8% (38.9%) 24.2% (2.6%) 26.3%
Return on average allocated capital (operating)  2) 4) 15.4% (34.1%) 25.8% (2.3%) 27.1%
Average allocated capital in CHF m 12'600 12'161 12'170 12'334 13'883
Growth in assets under management (1.3%) (3.8%) 5.8% (9.5%) 2.5%
of which net new assets (0.1%) 0.2% 1.6% 2.5% 5.8%
of which market movement and structural effects (1.3%) (4.1%) 3.8% (11.8%) (4.2%)
of which acquisitions/(divestitures) 0.1% 0.1% 0.4% (0.2%) 0.9%
of which discretionary (0.7%) (0.6%) 2.6% (1.9%) n/a
31.12.02 30.09.02 31.12.01
Assets under management in CHF bn 677.5 686.4 748.4
Number of employees 53'755 54'218 51'668
1) Based on the business unit results including certain acquisition-related costs, exceptional items and cumulative effect of change in accounting principle not allocated to the segments. Please refer to pages 33-36.
2) Based on the results of the separate segments comprising the business unit, which exclude certain acquisition-related costs, exceptional items and cumulative effect of change in accounting principle not allocated to the segments. Please refer to pages 33-36.
3) Excluding amortization of PVFP from the insurance business within Credit Suisse Financial Services.
4) Excluding cumulative effect of change in accounting principle.

Overview of business unit Credit Suisse Financial Services  1)
Credit
Corp. & Suisse
Private Retail Life & Financial
4Q2002, in CHF m Banking Banking Pensions Insurance Services
Operating income 2) 1'477 575 909 556 3'517
Personnel expenses 565 234 247 359 1'405
Other operating expenses 386 187 138 186 897
Operating expenses 951 421 385 545 2'302
Gross operating profit 526 154 524 11 1'215
Depreciation of non-current assets 62 25 90 79 256
Amortization of Present Value of Future Profits (PVFP) 60 2 62
Valuation adjustments, provisions and losses 33 72 105
Net operating profit before extraordinary and exceptional items, cumulative effect of change in accounting principle and taxes 431 57 374 (70) 792
Extraordinary income/(expenses), net 23 1 0 0 24
Taxes  3) (115) (12) (281) 76 (332)
Net operating profit before exceptional items, cumulative effect of change in accounting principle and minority interests 339 46 93 6 484
Amortization of acquired intangible assets and goodwill (37)
Exceptional items (73)
Tax impact 14
Cumulative effect of change in accounting principle 266
Net profit before minority interests 654
Minority interests 51
Net profit 705
Average allocated capital  4) 3'317 3'802 5'481 12'600
1) The business unit results reflect the results of the separate segments comprising the business unit. Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill, exceptional items and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results. The exceptional items relate to focusing the European initiative on private banking clients. For a complete reconciliation of the business unit results to the Group‘s consolidated results and a discussion of the material reconciling items, please refer to pages 33-36.
2) Operating income for the insurance business is defined as net premiums earned, less claims incurred and change in technical provisions and expenses for processing claims, less commissions, plus net investment income from the insurance business.
3) Excluding tax impact on amortization of acquired intangible assets and goodwill as well as exceptional items.
4) Life & Pensions and Insurance segment amount represents the average shareholders‘ equity of «Winterthur» Swiss Insurance Company.

Private Banking income statement  1)
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Net interest income 414 400 500 4 (17) 1'691 1'976 (14)
Net commission and service fee income 930 955 1'060 (3) (12) 4'214 4'519 (7)
Net trading income 118 72 153 64 (23) 495 640 (23)
Other ordinary income 15 13 22 15 (32) 61 110 (45)
Operating income 1'477 1'440 1'735 3 (15) 6'461 7'245 (11)
Personnel expenses 565 576 570 (2) (1) 2'393 2'502 (4)
Other operating expenses 386 352 420 10 (8) 1'469 1'522 (3)
Operating expenses 951 928 990 2 (4) 3'862 4'024 (4)
Gross operating profit 526 512 745 3 (29) 2'599 3'221 (19)
Depreciation of non-current assets 62 82 99 (24) (37) 253 215 18
Valuation adjustments, provisions and losses  2) 33 21 (41) 57 97 75 29
Net operating profit before extraordinary and exceptional items, cumulative effect of change in accounting principle and taxes 431 409 687 5 (37) 2'249 2'931 (23)
Extraordinary income/(expenses), net 23 2 8 188 44 12 267
Taxes  3) (115) (108) (116) 6 (1) (531) (642) (17)
Net operating profit before exceptional items, cumulative effect of change in accounting principle and minority interests (segment result) 339 303 579 12 (41) 1'762 2'301 (23)
Increased/(decreased) credit-related valuation adjustments 2) (13) 16 (6) (7) (25)
1) Certain reclassifications have been made to conform to the current presentation. Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill, exceptional items and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results.
2) Increased/(decreased) valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes would have been CHF -92 m for 4Q2002.

Private Banking balance sheet information
Change Change
in % from in % from
in CHF m 31.12.02 30.09.02 31.12.01 30.09.02 31.12.01
Total assets 169'414 174'881 170'364 (3) (1)
Due from customers 36'468 38'356 31'410 (5) 16
Mortgages 44'832 44'126 42'008 2 7

Private Banking key information
12 months
4Q2002 3Q2002 4Q2001 2002 2001
Cost/income ratio  1) 68.6% 70.1% 62.8% 63.7% 58.5%
Average allocated capital in CHF m 3'317 3'599 3'233 3'461 3'259
Pre-tax margin  1) 30.7% 28.5% 40.1% 35.5% 40.6%
Fee income/operating income 63.0% 66.3% 61.1% 65.2% 62.4%
Net new assets in CHF bn 0.5 3.4 8.6 18.7 35.7
Growth in assets under management (1.3%) (4.4%) 6.2% (10.8%) 1.8%
of which net new assets 0.1% 0.7% 1.7% 3.4% 6.6%
of which market movement and structural effects (1.5%) (5.1%) 4.0% (14.2%) (6.1%)
of which acquisitions/(divestitures) 0.1% 0.5% 0.1% 1.3%
Net margin  2) 27.2 bp 24.0 bp 43.6 bp 33.7 bp 42.3 bp
Gross margin  3) 118.3 bp 114.2 bp 130.7 bp 123.4 bp 133.3 bp
31.12.02 30.09.02 31.12.01
Assets under management in CHF bn 488.0 494.5 546.8
Number of employees 14'923 15'249 14'818
1) Based on the segment results, which exclude certain acquisition-related costs, exceptional items and cumulative effect of change in accounting principle not allocated to the segment.
2) Net operating profit before exceptional items, cumulative effect of change in accounting principle and minority interests (segment result)/average assets under management.
3) Operating income/average assets under management.

Corporate & Retail Banking income statement  1)
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Net interest income 418 423 413 (1) 1 1'672 1'658 1
Net commission and service fee income 102 126 108 (19) (6) 478 461 4
Net trading income 56 66 60 (15) (7) 249 250 0
Other ordinary income (1) 0 2 36 29 24
Operating income 575 615 583 (7) (1) 2'435 2'398 2
Personnel expenses 234 237 235 (1) 0 939 1'000 (6)
Other operating expenses 187 152 161 23 16 646 620 4
Operating expenses 421 389 396 8 6 1'585 1'620 (2)
Gross operating profit 154 226 187 (32) (18) 850 778 9
Depreciation of non-current assets 25 27 39 (7) (36) 89 84 6
Valuation adjustments, provisions and losses  2) 72 70 89 3 (19) 293 308 (5)
Net operating profit before extraordinary items, cumulative effect of change in accounting principle and taxes 57 129 59 (56) (3) 468 386 21
Extraordinary income/(expenses), net 1 4 0 (75) 4 13 (69)
Taxes  3) (12) (31) (14) (61) (14) (109) (94) 16
Net operating profit before cumulative effect of change in accounting principle and minority interests (segment result) 46 102 45 (55) 2 363 305 19
Increased/(decreased) credit-related valuation adjustments 2) 98 15 16 127 47
1) Certain reclassifications have been made to conform to the current presentation. Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill not allocated to the segments are included in the business unit results.
2) Increased/(decreased) valuation adjustments taken at Group level resulting from the difference between the statistical and actual credit provisions.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses, which did not have an impact on the taxes reported.

Corporate & Retail Banking balance sheet information
Change Change
in % from in % from
in CHF m 31.12.02 30.09.02 31.12.01 30.09.02 31.12.01
Total assets 70'951 72'658 72'372 (2) (2)
Due from customers 26'292 27'483 28'889 (4) (9)
Mortgages 35'267 35'592 34'279 (1) 3
Due to customers in savings and investment deposits 17'952 17'586 17'631 2 2
Due to customers, other 26'402 26'686 29'218 (1) (10)

Corporate & Retail Banking key information
12 months
4Q2002 3Q2002 4Q2001 2002 2001
Cost/income ratio  1) 77.6% 67.6% 74.6% 68.7% 71.1%
Return on average allocated capital  1) 4.8% 10.5% 4.6% 9.3% 7.8%
Average allocated capital in CHF m 3'802 3'893 3'901 3'898 3'905
Pre-tax margin  1) 10.1% 21.6% 10.1% 19.4% 16.6%
Personnel expenses/operating income 40.7% 38.5% 40.3% 38.6% 41.7%
Net interest margin 233 bp 238 bp 228 bp 235 bp 226 bp
Loan growth (2.4%) (1.4%) 0.2% (2.5%) (1.4%)
Net new assets in CHF bn 0.2 (2.3) 0.9 (3.2) 1.3
31.12.02 30.09.02 31.12.01
Deposit/loan ratio 72.1% 70.2% 74.2%
Assets under management in CHF bn 48.0 47.8 55.9
Number of employees 6'702 6'818 6'898
Number of branches 223 223 227
1) Based on the segment results, which exclude certain acquisition-related costs not allocated to the segment.

Life & Pensions income statement  1)
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Gross premiums written 4'218 4'543 4'899 (7) (14) 19'019 17'413 9
Reinsurance ceded (14) 171 (61) (77) (40) (210) (81)
Net premiums written 4'204 4'714 4'838 (11) (13) 18'979 17'203 10
Change in provision for unearned premiums 29 8 (5) 263 (4) (15) (73)
Net premiums earned 4'233 4'722 4'833 (10) (12) 18'975 17'188 10
Death and other benefits incurred (5'373) (2'672) (3'234) 101 66 (14'692) (12'167) 21
Change in provision for future policyholder benefits (technical) 1'116 (2'506) (2'059) (5'750) (6'572) (13)
Change in provision for future policyholder benefits (separate account)  2) 80 1'104 (652) (93) 1'730 1'115 55
Dividends to policyholders incurred 738 207 458 257 61 1'758 (287)
Acquisition cost (incl. change in DAC/PVFP) (160) (358) (141) (55) 13 (716) (556) 29
Non-deferrable cost (409) (333) (311) 23 32 (1'463) (1'312) 12
Investment income general account 333 309 663 8 (50) 1'438 4'766 (70)
Investment income separate account  2) (80) (1'104) 652 (93) (1'730) (1'115) 55
Interest received and paid (39) (30) (67) 30 (42) (92) (139) (34)
Interest on bonuses credited to policyholders (41) (29) (36) 41 14 (146) (135) 8
Other income/(expenses) (24) 5 2 74 (53)
Net operating profit/(loss) before cumulative effect of change in accounting principle and taxes 374 (685) 108 246 (614) 733
Taxes  3) (281) (396) (28) (29) (786) (153) 414
Net operating profit/(loss) before cumulative effect of change in accounting principle and minority interests (segment result) 93 (1'081) 80 16 (1'400) 580
1) The presentation of segment results differs from the presentation of the Group's consolidated results as it reflects the way the insurance business is managed, which is in line with peers in the insurance industry. Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results.
2) This represents the market impact for separate account (or unit-linked) business, where the investment risk is borne by the policyholder.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes would have been CHF -501 m for 4Q2002.

Life & Pensions key information
12 months
4Q2002 3Q2002 4Q2001 2002 2001
Expense ratio  1) 13.4% 14.6% 9.4% 11.5% 10.9%
Growth in gross premiums written (13.9%) 44.8% 16.0% 9.2% 12.7%
Return on invested assets (excluding separate account business)
Current income 3.6% 3.6% 4.1% 3.9% 4.3%
Realized gains/losses and other income/expenses (2.5%) (2.4%) (1.6%) (2.5%) 0.5%
Total return on invested assets  2) 1.2% 1.2% 2.5% 1.4% 4.8%
Net new assets in CHF bn  3) (1.3) 0.4 1.8 3.4 5.0
Total sales in CHF m  4) 5'283 5'240 6'172 22'790 22'505
31.12.02 30.09.02 31.12.01
Assets under management in CHF bn  5) 110.8 113.0 115.2
Technical provisions in CHF m 105'939 108'098 108'326
Number of employees 7'815 7'927 7'755
1) Operating expenses (i.e. acquisition and non-deferrable cost)/net premiums earned.
2) Total investment return on invested assets includes depreciation on real estate and investment expenses as well as investment income and realized gains and losses.
3) Based on change in technical provisions for traditional business, adjusted for technical interests, net inflow of separate account business and change in off-balance sheet business such as funds.
4) Includes gross premiums written and off-balance sheet sales.
5) Based on savings-related provisions for policyholders plus off-balance sheet assets.

Insurance income statement  1)
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Gross premiums written 3'846 3'755 3'685 2 4 18'391 18'412 0
Reinsurance ceded (299) (232) (209) 29 43 (1'150) (1'572) (27)
Net premiums written 3'547 3'523 3'476 1 2 17'241 16'840 2
Change in provision for unearned premiums and in provision for future policy benefits (health) 485 414 319 17 52 (1'538) (1'833) (16)
Net premiums earned 4'032 3'937 3'795 2 6 15'703 15'007 5
Claims and annuities incurred, net (3'034) (2'920) (2'837) 4 7 (11'749) (11'509) 2
Dividends to policyholders incurred, net 109 (53) (50) 106 (311)
Acquisition cost (incl. change in DAC/PVFP) (647) (630) (584) 3 11 (2'529) (2'391) 6
Non-deferrable cost (481) (496) (497) (3) (3) (1'959) (1'944) 1
Underwriting result, net (21) (162) (173) (87) (88) (428) (1'148) (63)
Net investment income 59 110 503 (46) (88) (10) 2'217
Interest received and paid (39) (36) (39) 8 0 (106) (98) 8
Other income/(expenses) (69) (115) (216) (40) (68) (349) (165) 112
Net operating profit/(loss) before cumulative effect of change in accounting principle and taxes (70) (203) 75 (66) (893) 806
Taxes  2) 76 (158) 7 (99) (224) (56)
Net operating profit/(loss) before cumulative effect of change in accounting principle and minority interests (segment result) 6 (361) 82 (93) (992) 582
1) The presentation of segment results differs from the presentation of the Group's consolidated results as it reflects the way the insurance business is managed, which is in line with peers in the insurance industry. Certain acquisition-related costs, including amortization of acquired intangible assets and goodwill and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results.
2) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes would have been CHF -200 m for 4Q2002.

Insurance key information
12 months
4Q2002 3Q2002 4Q2001 2002 2001
Combined ratio (excluding dividends to policyholders) 103.2% 102.8% 103.3% 103.4% 105.6%
Claims ratio  1) 75.2% 74.2% 74.8% 74.8% 76.7%
Expense ratio  2) 28.0% 28.6% 28.5% 28.6% 28.9%
Return on invested assets
Current income 3.9% 4.1% 3.9% 4.2% 4.6%
Realized gains/losses and other income/expenses (3.4%) (2.5%) 2.4% (4.3%) 2.3%
Total return on invested assets  3) 0.5% 1.6% 6.3% (0.1%) 6.9%
31.12.02 30.09.02 31.12.01
Assets under management in CHF bn 30.7 31.1 30.5
Technical provisions in CHF m 28'745 29'706 27'738
Number of employees 24'315 24'224 22'197
1) Claims and annuities incurred, net/net premiums earned.
2) Operating expenses (i.e. acquisition and non-deferrable cost)/net premiums earned.
3) Total investment return on invested assets includes depreciation on real estate and investment expenses as well as investment income and realized gains and losses.



REVIEW OF BUSINESS UNITS | CREDIT SUISSE FIRST BOSTON

Credit Suisse First Boston recorded a net loss of USD 811 million (CHF 1.3 billion) for the fourth quarter and a net loss of USD 1.2 billion (CHF 1.9 billion) for the full year 2002, including after-tax exceptional items of USD 813 million (CHF 1.3 billion). In addition, this result reflects reduced revenues, against the backdrop of a protracted downturn in the markets, and charges associated with legacy assets. Operating expenses decreased 14% quarter-on-quarter and were down 23% for the full year 2002 compared with 2001. Excluding exceptional items, the cumulative effect of a change in accounting principles and the amortization of acquired intangible assets and goodwill, Credit Suisse First Boston posted a net operating profit of USD 11 million (CHF 15 million) in the fourth quarter and USD 140 million (CHF 219 million) for the full year 2002.

Credit Suisse First Boston posted a net loss of USD 811 million (CHF 1.3 billion) in the fourth quarter, including after-tax exceptional items of USD 813 million (CHF 1.3 billion). This compared with a net loss of USD 425 million (CHF 679 million) in the third quarter 2002 and a net loss of USD 939 million (CHF 1.6 billion) in the fourth quarter of 2001.

For the full year 2002, Credit Suisse First Boston posted a net loss of USD 1.2 billion (CHF 1.9 billion), compared with a net loss of USD 821 million (CHF 1.4 billion) in 2001. Results for 2002 and 2001 include pre-tax exceptional items of USD 890 million (CHF 1.4 billion) and USD 845 million (CHF 1.4 billion), respectively. A change in accounting principles allowing the recognition of deferred tax assets on net operating losses led to the recognition of tax benefits of USD 556 million (CHF 868 million) in 2002. Full year 2002 results also reflect the positive cumulative effect of the change in accounting principles of USD 162 million (CHF 254 million) from prior years.

Excluding exceptional items, the positive cumulative effect of the change in accounting principles and the amortization of acquired intangible assets and goodwill, Credit Suisse First Boston posted a net operating profit of USD 140 million (CHF 219 million) for the full year 2002, compared with USD 530 million (CHF 893 million) in 2001.

The pre-tax exceptional items of USD 890 million (CHF 1.4 billion), or USD 813 million (CHF 1.3 billion) after tax, which occurred in the fourth quarter 2002, comprise a pre-tax loss of USD 86 million (CHF 134 million), or USD 250 million (CHF 390 million) after tax, related to the sale of Pershing; a USD 150 million (CHF 234 million) pre-tax charge for the agreement in principle with US regulators involving research analyst independence and the allocation of IPO shares to executive officers; a USD 450 million (CHF 702 million) pre-tax provision for Credit Suisse First Boston‘s private litigation involving research analyst independence, certain IPO allocation practices, Enron and other related litigation; and a USD 204 million (CHF 319 million) pre-tax charge related to the previously announced USD 500 million cost reduction program. Expenses associated with this cost reduction program include USD 165 million (CHF 257 million) of severance-related costs, USD 21 million (CHF 33 million) of excess facilities costs, and USD 18 million (CHF 28 million) of costs associated with the sale of a 90% participation in its non-core South African equity brokerage business to a management empowerment company in South Africa.

The provision relating to private litigation represents management‘s current estimate after consultation with counsel of the probable aggregate costs associated with such matters. Credit Suisse First Boston believes that it has substantial defenses in these private litigation matters, which are at an early stage. Given that it is difficult to predict the outcome of these matters, where claimants seek large or indeterminate damages or where the cases present novel theories or involve a large number of parties, Credit Suisse First Boston cannot state with confidence what the timing or eventual outcome will actually be. The provision may be subject to revision in the future.

Fourth quarter 2002 operating income was down 11% on the third quarter to USD 2.4 billion (CHF 3.4 billion), primarily due to reduced revenues in the Institutional Securities segment (formerly the Investment Banking segment). The segment‘s Fixed Income division reported the most significant decrease, related primarily to developed markets credit and interest rate products. However, the Investment Banking division reported an increase in operating income in the fourth quarter, principally in the private equity business. Compared with the same period of 2001, the segment‘s fourth quarter operating income fell 13%, with declines across most divisions. For the full year 2002, Credit Suisse First Boston‘s operating income decreased 21% versus 2001, to USD 11.8 billion (CHF 18.4 billion).

As a result of Credit Suisse First Boston‘s continued commitment to cost savings, fourth quarter operating expenses fell 14% versus the previous quarter and were down 13% on the fourth quarter 2001. For the full year 2002, operating expenses declined by 23% or USD 2.7 billion (CHF 5.8 billion) to USD 9.3 billion (CHF 14.5 billion). Much of this cost reduction was driven by a 14% decline in headcount during 2002 and the sale of non-core businesses. Personnel expenses declined 24% compared with 2001, and other operating expenses were down 20%. As previously announced, Credit Suisse First Boston launched a further cost reduction program in the fourth quarter to reduce annual operating expenses by approximately USD 500 million by means of further headcount reductions. The business unit‘s personnel expense/revenue ratio on an operating basis improved from 54.4% in 2001 to 52.6% in 2002.

In January 2003, Credit Suisse First Boston announced a definitive agreement to sell its Pershing operation to The Bank of New York Company, Inc. for USD 2.0 billion (approximately CHF 2.8 billion) in cash, together with the repayment of a USD 480 million (CHF 667 million) subordinated loan and an additional contingent payment of up to USD 50 million (CHF 70 million) based on future performance. With this transaction, which is expected to close in the first half of 2003 subject to regulatory and other conditions, the regulatory capital of Credit Suisse First Boston and Credit Suisse Group will be increased through the elimination of approximately USD 500 million (CHF 695 million) in goodwill and a reduction of USD 1.6 billion (CHF 2.2 billion) in risk-weighted assets. The 2002 operating income and operating expenses of Pershing amounted to USD 854 million (CHF 1.3 billion) and USD 661 million (CHF 1.0 billion), respectively.

Assets under management, including private equity, totaled USD 372.5 billion (CHF 517.8 billion) as of December 31, 2002, up 3.7% on a US dollar basis from September 30, 2002. This increase reflects foreign exchange movements and a slight recovery in major market indices during the fourth quarter, but was partially offset by net asset outflows. Compared with December 31, 2001, assets under management declined 8.5% on a US dollar basis. Discretionary assets under management as of December 31, 2002, totaled USD 234.1 billion (CHF 325.5 billion) up marginally from September 30, 2002, and down 8.4% versus December 31, 2001, on a US dollar basis. Credit Suisse Asset Management continued to experience performance-related net asset outflows through the fourth quarter. The business unit‘s advisory assets under management were USD 138.3 billion (CHF 192.3 billion) as of December 31, 2002, up 9.0% from September 30, 2002, and down 8.8% versus year-end 2001 on a US dollar basis.

In response to the current market environment, Credit Suisse First Boston has implemented several measures, which include the alignment of its cost base to current conditions, including a reduction in guaranteed compensation and the reduction of the risk level associated with the legacy asset portfolios. These measures, along with the scheduled completion of the amortization of DLJ retention payments in June 2003, are expected to enhance the future results of the business unit. Credit Suisse First Boston will continue to build on the strength of its core franchise and platform.

Institutional Securities
The Institutional Securities segment reported fourth quarter operating income of USD 1.9 billion (CHF 2.7 billion), down 12% on the third quarter 2002 and down 13% versus the fourth quarter of 2001, reflecting declines in the Fixed Income and Equity businesses. For the full year 2002, the segment‘s operating income declined 23% compared with 2001, due to decreases in the Fixed Income and Equity businesses as well as writedowns related to the legacy asset portfolio. Fourth quarter 2002 operating expenses were USD 1.5 billion (CHF 2.1 billion), a decrease of 16% on the previous quarter and of 15% on the fourth quarter 2001, due primarily to reductions in incentive compensation. As a result of cost reduction measures, operating expenses for 2002 decreased 24%, with personnel expenses down USD 1.8 billion (CHF 3.7 billion), or 26%, and other operating expenses down USD 620 million (CHF 1.4 billion), or 20%, versus the previous year.

The corporate credit environment remained unfavorable in the fourth quarter. Credit provisions of USD 298 million (CHF 447 million) and USD 899 million (CHF 1.4 billion) were recorded against impaired corporate lending assets for the fourth quarter and full year 2002, respectively. This compared with provisions of USD 403 million (CHF 630 million) in the previous quarter and of USD 762 million (CHF 1.3 billion) in 2001. Additionally, a credit provision of USD 340 million (CHF 530 million) related to a change in estimate for the risk of loss inherent in the portfolio of non-impaired loans and commitments was recorded in the fourth quarter of 2002. During the fourth quarter, Credit Suisse Group released a portion of its reserve for general banking risks, allocating USD 245 million (CHF 382 million) of this release to Credit Suisse First Boston to offset the after-tax impact of the inherent loan loss; this release was reflected as extraordinary income. Credit provisions related to non-continuing real estate lending activity totaled USD 154 million (CHF 241 million) for 2002, compared with a net release of provisions of USD 38 million (CHF 64 million) in 2001, and a net release of USD 8 million (CHF 17 million) recorded in the fourth quarter of 2002. Provisions of USD 91 million (CHF 142 million) related to excess office facilities were recorded in 2002.

Fixed Income operating income for the fourth quarter of 2002 was down 47% versus the third quarter, to USD 587 million (CHF 806 million). This decline was primarily attributable to the developed markets credit products business, which was adversely impacted by reduced liquidity and continued uncertainty in the utility, airline and telecommunications sectors. Additionally, notes issued by affiliates of National Century Financial Enterprises, Inc. (NCFE), in the principal amount of USD 258 million held by Credit Suisse First Boston for its own account, were written down by USD 214 million (CHF 332 million) to 17% of their principal amount. Approximately one-half of this writedown was recorded through operating income, with the other half recorded through provisions. The fourth quarter saw a decline in the emerging markets business – which had been favorably impacted in Brazil in the third quarter – and a decline in the trading results of the interest rate products business, also including a seasonal activity decline.

Compared with the same period of 2001, fourth quarter operating income declined 30%. Declines in the developed markets credit products and interest rate products businesses in the fourth quarter 2002 were partially offset by an improvement in emerging market results, which had been adversely impacted in the fourth quarter of 2001 by difficult economic conditions in emerging markets, including Argentina.

For the full year 2002, operating income decreased 25% versus 2001, due in particular to declines in the interest rate products business, which was positively impacted by significant interest rate declines in the US and Europe in 2001. The Fixed Income business ranked number one in high yield and asset-backed new issuances for 2002 and improved its overall global debt issuance position to second.

Equity operating income decreased 22%, to USD 562 million (CHF 806 million), in the fourth quarter 2002 compared with the third quarter, due to a decline in the derivatives business. However, fourth quarter operating income from the cash businesses was stable compared with the previous quarter. Compared to the fourth quarter of 2001, operating income declined 20%, primarily as a result of declines in the US cash businesses. Operating income totaled USD 2.9 billion (CHF 4.5 billion) for the full year 2002, down 26% on 2001. The 2002 equity market was challenging, with reduced volumes in US new issuances, depressed trading volumes and reduced commission margins in the cash customer businesses. Most major market indices posted declines for the year. Operating income from convertible securities also decreased, impacted by corporate defaults, widening credit spreads, declines in the telecom and energy sectors, and reduced new issuance activity. In 2002, Credit Suisse First Boston ranked fourth in global equity new issuances, tied for first place in global equity research, ranked first in pan-European and Latin American research and second in non-Japan Asia research.

Investment Banking‘s fourth quarter 2002 operating income, which includes private equity, increased 68% versus the previous quarter to USD 813 million (CHF 1.2 billion), due principally to gains on the sale of an investment in Swiss Re and slightly higher banking results. Merger and acquisition (M&A) and equity new issuance activity remained depressed. Operating income increased 38% compared to the fourth quarter of 2001 due to gains in the private equity area, partially offset by declines as a result of lower fees from equity new issuances and M&A activity. The division‘s full year operating income increased 3% versus 2001, reflecting gains from sales and increased management fees in the private equity business. However, these gains were partially offset by reduced fee income from M&A activity. During 2002, the value of worldwide merger transactions fell 30%, with Credit Suisse First Boston ranking third in terms of US dollar volume of announced transactions for 2002.

Private equity net gains (both realized and unrealized gains and losses) were USD 230 million (CHF 355 million) in the fourth quarter 2002, compared with net gains of USD 12 million (CHF 14 million) in the third quarter 2002 and net losses of USD 97 million (CHF 167 million) in the fourth quarter of 2001. A full year net gain of USD 364 million (CHF 568 million) was recorded for 2002, compared with a net loss of USD 258 million (CHF 436 million) in 2001. These amounts include gains from the sale of an investment in Swiss Re of USD 309 million (CHF 473 million) and USD 96 million (CHF 141 million) in the fourth and third quarters of 2002, respectively. Total gains from the sale of the investment in Swiss Re amounted to USD 629 million (CHF 981 million) in 2002 and USD 148 million (CHF 251 million) in 2001; the entire stake in Swiss Re has now been sold. Management and performance fees amounted to USD 53 million (CHF 78 million) in the fourth quarter 2002, versus USD 56 million (CHF 83 million) in the previous quarter and USD 55 million (CHF 94 million) in the fourth quarter of 2001. Total management and performance fees were USD 225 million (CHF 351 million) and USD 253 million (CHF 428 million) for 2002 and 2001, respectively. The book value of the private equity investments was USD 1.9 billion (CHF 2.7 billion) and fair value was USD 2.0 billion (CHF 2.8 billion) as of December 31, 2002. As announced in 2002, Credit Suisse First Boston is exploring the sale of certain private equity investments, including investments in mature third-party leverage buyout funds. The aggregate amount of losses reported against operating income for these private equity investments totaled USD 123 million (CHF 188 million) and USD 275 million (CHF 430 million) for the fourth quarter and full year 2002, respectively.

Operating losses of USD 85 million (CHF 126 million) for the fourth quarter and of USD 286 million (CHF 446 million) for the full year 2002 were reported in “Other” within the Institutional Securities segment, and were primarily attributable to losses generated by the non-continuing real estate and distressed asset portfolios. The net exposure of the non-continuing real estate portfolio – including unfunded commitments – was USD 1.5 billion (CHF 2.1 billion) as of December 31, 2002, a decrease of USD 548 million (CHF 971 million) and USD 1.4 billion (CHF 2.8 billion) versus September 30, 2002, and December 31, 2001, respectively. As of December 31, 2002, the carrying amount of distressed portfolio assets totaled USD 512 million (CHF 712 million), a decrease of 18% versus September 30, 2002, and of 53% compared with December 31, 2001. The aggregate amount of charges related to these non-continuing legacy businesses in 2002 was USD 797 million (CHF 1.2 billion), of which USD 643 million (CHF 1.0 billion) was netted against operating income and USD 154 million (CHF 240 million) was included in provisions. In the fourth quarter 2002, charges related to non-continuing legacy businesses amounted to USD 149 million (CHF 213 million), of which USD 157 million (CHF 231 million) was netted against operating income and USD 8 million (CHF 17 million) was reflected as a reduction in provisions.

CSFB Financial Services
CSFB Financial Services reported operating income of USD 484 million (CHF 707 million) for the fourth quarter 2002, down 3% on the third quarter 2002 and 19% on the fourth quarter of 2001. Year-on-year, operating income decreased 13% to USD 2.1 billion (CHF 3.2 billion) due to net outflows of assets under management, a decline in major market indices across the globe, lower trading volumes, an overall decline in customer debit balances, and the impact of the sale of CSFB direct and Autranet. Operating expenses decreased 15% compared with 2001 due to the impact of a number of cost reduction initiatives, including a 16% reduction in headcount, greater discipline regarding discretionary spending, and the sale of CSFB direct and Autranet. Excluding divestitures, expenses were down 5% compared to 2001. Fourth quarter 2002 operating expenses were 4% and 3% lower than those in the previous quarter and the fourth quarter of 2001, respectively.

At Credit Suisse Asset Management , fourth quarter and full year 2002 operating income declined versus the fourth quarter and full year 2001 as a result of lower fees associated with the net outflow of assets – particularly in the US – and lower performance fees. Fourth quarter operating income increased 3% compared with the previous quarter, despite a 4.6% decrease in discretionary institutional assets under management. During 2002, discretionary institutional assets under management declined CHF 85.5 billion, or 23.5%, versus 2001. The decrease in assets under management was attributable to market declines, foreign exchange movements and performance-related net asset outflows. In December 2002, Credit Suisse Asset Management announced organizational changes designed to strengthen its global platform, including a focus on global rather than regional management.

Pershing‘s fourth quarter 2002 operating income was slightly below the preceding quarter and the fourth quarter of 2001. For the full year 2002, operating income declined 6% to USD 854 million (CHF 1.3 billion) versus 2001, reflecting lower transaction volumes that adversely impacted trading and commission income. Trades per day averaged 122,600 for the fourth quarter compared with 121,000 for the third quarter of 2002 and 133,100 for the fourth quarter of 2001. Average trades per day for 2002 totaled 125,800, 14% lower than the 146,100 average trades per day in 2001. Reduced customer debit balances, averaging USD 4.6 billion for 2002 compared with USD 6.2 billion in 2001, contributed to a year-on-year decline in interest income. Customer debit balances averaged USD 4.2 billion in the fourth quarter of 2002, USD 4.4 billion in the third quarter of 2002 and USD 5.3 billion in the fourth quarter of 2001. Operating expenses in 2002 amounted to USD 661 million (CHF 1.0 billion). In January 2003, Credit Suisse First Boston announced an agreement to sell Pershing, as noted above.

Private Client Services recorded a decrease in operating income in the fourth quarter 2002, compared with the previous quarter and the fourth quarter 2001. Operating income was down, reflecting the weak equity market environment, with customer trading, customer debit balances and assets under management declining. Total transactions in 2002 amounted to 1.4 million, down 14% from 1.7 million transactions recorded in 2001. Customer debit balances averaged USD 751 million in 2002 versus USD 1.2 billion in 2001. Private Client Services’ net new assets stood at CHF 8.0 billion for the full year 2002 compared with CHF 15.8 billion for 2001, with an increase of CHF 2.7 billion in the fourth quarter of 2002 compared with the third quarter of 2002.

Credit Suisse First Boston business unit income statement  1)
Change Change Change
in % from in % from 12 months in % from
in USD m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Operating income 2'361 2'638 2'757 (11) (14) 11'769 14'948 (21)
Personnel expenses 1'068 1'394 1'124 (23) (5) 6'191 8'125 (24)
Other operating expenses 802 775 1'016 3 (21) 3'086 3'852 (20)
Operating expenses 1'870 2'169 2'140 (14) (13) 9'277 11'977 (23)
Gross operating profit 491 469 617 5 (20) 2'492 2'971 (16)
Depreciation of non-current assets 107 139 157 (23) (32) 485 562 (14)
Valuation adjustments, provisions and losses  2) 657 560 477 17 38 1'679 912 84
Net operating profit/(loss) before extraordinary and exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and taxes (273) (230) (17) 19 328 1'497 (78)
Extraordinary income/(expenses), net 246 0 0 262 (10)
Taxes  3) 4) 138 84 55 64 151 30 (310)
Net operating profit/(loss) before exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and minority interests 111 (146) 38 192 620 1'177 (47)
Acquisition interest (57) (68) (100) (16) (43) (323) (489) (34)
Amortization of retention payments (97) (100) (128) (3) (24) (416) (480) (13)
Amortization of acquired intangible assets and goodwill (209) (207) (222) 1 (6) (835) (862) (3)
Exceptional items (890) 0 (845) 5 (890) (845) 5
Tax impact 169 96 319 76 (47) 488 679 (28)
Cumulative effect of change in accounting principle  3) 162 162
Net profit/(loss) before minority interests (811) (425) (938) 91 (14) (1'194) (820) 46
Minority interests 0 0 (1) (100) 0 (1) (100)
Net profit/(loss) (811) (425) (939) 91 (14) (1'194) (821) 45

See page 23 for footnotes.










Reconciliation to net operating profit/(loss)
Change Change Change
in % from in % from 12 months in % from
in USD m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Net profit/(loss) (811) (425) (939) 91 (14) (1'194) (821) 45
Amortization of acquired intangible assets and goodwill 209 207 222 1 (6) 835 862 (3)
Exceptional items 890 0 845 5 890 845 5
Tax impact (115) (37) (242) 211 (52) (229) (356) (36)
Cumulative effect of change in accounting principle (162) (162)
Net operating profit/(loss) 11 (255) (114) 140 530 (74)

Credit Suisse First Boston business unit income statement  1)
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Operating income 3'401 3'856 4'781 (12) (29) 18'360 25'262 (27)
Personnel expenses 1'512 2'031 1'969 (26) (23) 9'658 13'731 (30)
Other operating expenses 1'184 1'157 1'747 2 (32) 4'815 6'512 (26)
Operating expenses 2'696 3'188 3'716 (15) (27) 14'473 20'243 (29)
Gross operating profit 705 668 1'065 6 (34) 3'887 5'019 (23)
Depreciation of non-current assets 156 209 270 (25) (42) 757 951 (20)
Valuation adjustments, provisions and losses  2) 993 867 810 15 23 2'618 1'541 70
Net operating profit/(loss) before extraordinary and exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and taxes (444) (408) (15) 9 512 2'527 (80)
Extraordinary income/(expenses), net 383 (1) 0 408 (15)
Taxes  3) 4) 220 143 90 54 144 48 (524)
Net operating profit/(loss) before exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and minority interests 159 (266) 75 112 968 1'988 (51)
Acquisition interest (80) (99) (175) (19) (54) (504) (828) (39)
Amortization of retention payments (142) (148) (220) (4) (35) (649) (812) (20)
Amortization of acquired intangible assets and goodwill (308) (308) (379) 0 (19) (1'303) (1'455) (10)
Exceptional items (1'389) 0 (1'428) (3) (1'389) (1'428) (3)
Tax impact 254 142 543 79 (53) 761 1'148 (34)
Cumulative effect of change in accounting principle  3) 254 254
Net profit/(loss) before minority interests (1'252) (679) (1'584) 84 (21) (1'862) (1'387) 34
Minority interests 0 0 (1) (100) 0 (1) (100)
Net profit/(loss) (1'252) (679) (1'585) 84 (21) (1'862) (1'388) 34
1) Certain reclassifications have been made to conform to the current presentation. The business unit results reflect the results of the separate segments comprising the business unit. Certain acquisition-related costs, including acquisition interest, amortization of retention payments and amortization of acquired intangible assets and goodwill, exceptional items and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results. The exceptional items are discussed on page 24. Certain other items, including brokerage, execution and clearing expenses and contractor costs, have been reclassified in the segment and business unit results and are adjusted at the Corporate Center in accordance with Swiss GAAP and reflected in the Group‘s consolidated results. For a complete reconciliation of the business unit results to the Group‘s consolidated results and a discussion of the material reconciling items, please refer to pages 33-36.
2) The amount in 4Q2001 includes valuation adjustments taken at Group level of CHF 112 m (USD 66 m), resulting from the difference between the statistical and the actual credit provisions (12 months 2001: CHF 194 m (USD 115 m)). As of 01.01.02, no such adjustments are recorded within Credit Suisse First Boston and the amounts reported in 2002 reflect actual credit provisions.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes would have been CHF -648 m (USD -418 m) for 4Q2002. The retroactive application of this change in accounting principle would have resulted in taxes for 4Q2002, 3Q2002 and 4Q2001 of CHF 22 m (USD 14 m), CHF 148 m (USD 91 m) and CHF 366 m (USD 218 m), respectively, and CHF -248 m (USD -147 m) for the 12 months 2001.
4) Excluding tax impact on acquisition-related costs as well as exceptional items.

Reconciliation to net operating profit/(loss)
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Net profit/(loss) (1'252) (679) (1'585) 84 (21) (1'862) (1'388) 34
Amortization of acquired intangible assets and goodwill 308 308 379 0 (19) 1'303 1'455 (10)
Exceptional items 1'389 0 1'428 (3) 1'389 1'428 (3)
Tax impact (176) (55) (410) 220 (57) (357) (602) (41)
Cumulative effect of change in accounting principle (254) (254)
Net operating profit/(loss) 15 (426) (188) 219 893 (75)

Credit Suisse First Boston business unit key information
12 months
based on CHF amounts 4Q2002 3Q2002 4Q2001 2002 2001
Cost/income ratio  1) 97.4% 94.4% 113.8% 90.3% 94.3%
Cost/income ratio (operating)  2) 83.9% 88.1% 83.4% 83.0% 83.9%
Return on average allocated capital  1) (36.1%) (18.8%) (42.6%) (12.9%) (8.8%)
Return on average allocated capital (operating)  2) 3) 0.4% (11.8%) (5.0%) 1.5% 5.7%
Average allocated capital in CHF m 13'864 14'437 14'877 14'407 15'704
Pre-tax margin  1) (52.0%) (25.7%) (48.5%) (15.0%) (8.2%)
Pre-tax margin (operating)  2) (8.3%) (17.0%) (8.6%) (1.3%) 3.5%
Personnel expenses/operating income  1) 57.1% 58.0% 69.4% 59.1% 63.6%
Personnel expenses/operating income (operating)  2) 44.5% 52.7% 41.2% 52.6% 54.4%
31.12.02 30.09.02 31.12.01
Number of employees 23'424 24'961 27'302
1) Based on the business unit results including certain acquisition-related costs, exceptional items and cumulative effect of change in accounting principle not allocated to the segments as well as certain reclassifications. Please refer to pages 33-36.
2) Based on the results of the separate segments comprising the business unit, which exclude certain acquisition-related costs, exceptional items and cumulative effect of change in accounting principle not allocated to the segments and include certain reclassifications. Please refer to pages 33-36.
3) Excluding cumulative effect of change in accounting principle.

Exceptional items
Valuation adjust.
Personnel provisions Extraordinary
expenses and losses expenses Pre-tax After-tax Pre-tax After-tax
in 4Q2002 and 12 months 2002 in USD m in USD m in USD m in USD m in USD m in CHF m in CHF m
Provision for the regulatory agreement in principle - 150 - 150 124 234 193
Loss in connection with the sale of Pershing - - 86 86 250 134 390
Restructuring 155 31 18 204 147 319 230
Provision for certain private litigation - 450 - 450 292 702 456
Exceptional items 890 813 1'389 1'269

Overview of business unit Credit Suisse First Boston 1)
in USD m in CHF m
CSFB CSFB
Institutional Financial Credit Suisse Institutional Financial Credit Suisse
4Q2002 Securities Services First Boston Securities Services First Boston
Operating income 1'877 484 2'361 2'694 707 3'401
Personnel expenses 831 237 1'068 1'166 346 1'512
Other operating expenses 641 161 802 947 237 1'184
Operating expenses 1'472 398 1'870 2'113 583 2'696
Gross operating profit 405 86 491 581 124 705
Depreciation of non-current assets 81 26 107 117 39 156
Valuation adjustments, provisions and losses 664 (7) 657 1'006 (13) 993
Net operating profit/(loss) before extraordinary and exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and taxes (340) 67 (273) (542) 98 (444)
Extraordinary income/(expenses), net 246 0 246 383 0 383
Taxes  2) 157 (19) 138 247 (27) 220
Net operating profit/(loss) before exceptional items, acquisition-related costs and cumulative effect of change in accounting principle 63 48 111 88 71 159
Acquisition interest (57) (80)
Amortization of retention payments (97) (142)
Amortization of acquired intangible assets and goodwill (209) (308)
Exceptional items (890) (1'389)
Tax impact 169 254
Cumulative effect of change in accounting principle 162 254
Net profit/(loss) (811) (1'252)
Average allocated capital 9'327 483 9'624 13'438 701 13'864
1) The business unit results reflect the results of the separate segments comprising the business unit. Certain acquisition-related costs, including acquisition interest, amortization of retention payments and amortization of acquired intangible assets and goodwill, exceptional items and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results. The exceptional items are discussed on page 24. Certain other items, including brokerage, execution and clearing expenses and contractor costs, have been reclassified in the segment and business unit results and are adjusted at the Corporate Center in accordance with Swiss GAAP and reflected in the Group‘s consolidated results. For a complete reconciliation of the business unit results to the Group‘s consolidated results and a discussion of the material reconciling items, please refer to pages 33-36.
2) Excluding tax impact on acquisition-related costs as well as exceptional items.

Institutional Securities income statement  1)
Change Change Change
in % from in % from 12 months in % from
in USD m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Fixed Income  2) 587 1'103 842 (47) (30) 4'222 5'614 (25)
Equity 562 718 699 (22) (20) 2'895 3'894 (26)
Investment Banking 813 485 589 68 38 2'864 2'779 3
Other  2) (85) (169) 30 (50) (286) 268
Operating income 1'877 2'137 2'160 (12) (13) 9'695 12'555 (23)
Personnel expenses 831 1'140 901 (27) (8) 5'183 6'961 (26)
Other operating expenses 641 613 827 5 (22) 2'442 3'062 (20)
Operating expenses 1'472 1'753 1'728 (16) (15) 7'625 10'023 (24)
Gross operating profit 405 384 432 5 (6) 2'070 2'532 (18)
Depreciation of non-current assets 81 116 131 (30) (38) 392 457 (14)
Valuation adjustments, provisions and losses 664 549 469 21 42 1'664 896 86
Net operating profit/(loss) before extraordinary and exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and taxes (340) (281) (168) 21 102 14 1'179 (99)
Extraordinary income/(expenses), net 246 0 0 262 (1)
Taxes  3) 157 98 85 60 85 118 (260)
Net operating profit/(loss) before exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and minority interests (segment result) 63 (183) (83) 394 918 (57)
1) Certain reclassifications have been made to conform to the current presentation. Certain acquisition-related costs, including acquisition interest, amortization of retention payments and amortization of acquired intangible assets and goodwill, exceptional items and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results.
2) Reflects the movement of the results of certain non-continuing real estate and distressed assets from Fixed Income to Other.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes would have been USD -372 m for 4Q2002.

Institutional Securities income statement  1)
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Fixed Income  2) 806 1'627 1'471 (50) (45) 6'586 9'488 (31)
Equity 806 1'062 1'213 (24) (34) 4'516 6'581 (31)
Investment Banking 1'208 693 1'017 74 19 4'469 4'697 (5)
Other  2) (126) (268) 52 (53) (446) 451
Operating income 2'694 3'114 3'753 (13) (28) 15'125 21'217 (29)
Personnel expenses 1'166 1'652 1'583 (29) (26) 8'086 11'764 (31)
Other operating expenses 947 916 1'421 3 (33) 3'810 5'176 (26)
Operating expenses 2'113 2'568 3'004 (18) (30) 11'896 16'940 (30)
Gross operating profit 581 546 749 6 (22) 3'229 4'277 (25)
Depreciation of non-current assets 117 175 224 (33) (48) 612 772 (21)
Valuation adjustments, provisions and losses 1'006 850 797 18 26 2'595 1'514 71
Net operating profit/(loss) before extraordinary and exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and taxes (542) (479) (272) 13 99 22 1'991 (99)
Extraordinary income/(expenses), net 383 (1) 0 408 (1)
Taxes  3) 247 163 142 52 74 185 (439)
Net operating profit/(loss) before exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and minority interests (segment result) 88 (317) (130) 615 1'551 (60)
1) Certain reclassifications have been made to conform to the current presentation. Certain acquisition-related costs, including acquisition interest, amortization of retention payments and amortization of acquired intangible assets and goodwill, exceptional items and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results.
2) Reflects the movement of the results of certain non-continuing real estate and distressed assets from Fixed Income to Other.
3) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes would have been CHF -579 m for 4Q2002.

Institutional Securities balance sheet information
in CHF m 31.12.02 30.09.02 31.12.01
Total assets 588'904 621'578 648'455
Total assets in USD m 423'611 416'970 387'045
Due from banks 198'511 200'921 198'806
of which securities lending and reverse repurchase agreements 156'234 155'968 159'784
Due from customers 114'775 122'368 118'007
of which securities lending and reverse repurchase agreements 57'435 62'105 59'806
Mortgages 14'825 16'498 16'348
Securities and precious metals trading portfolios 163'480 171'957 204'907
Due to banks 292'449 292'418 344'091
of which securities borrowing and repurchase agreements 123'017 106'551 137'731
Due to customers, other 109'980 119'100 108'470
of which securities borrowing and repurchase agreements 66'864 77'435 62'136

Institutional Securities key information
12 months
based on CHF amounts 4Q2002 3Q2002 4Q2001 2002 2001
Cost/income ratio  1) 82.8% 88.1% 86.0% 82.7% 83.5%
Average allocated capital in CHF m 13'438 13'906 13'936 13'814 14'829
Pre-tax margin  1) (5.9%) (15.4%) (7.2%) 2.8% 9.4%
Personnel expenses/operating income  1) 43.3% 53.1% 42.2% 53.5% 55.4%
31.12.02 30.09.02 31.12.01
Number of employees 16'524 17'728 19'094
1) Based on the segment results, which exclude certain acquisition-related costs, exceptional items and cumulative effect of change in accounting principle not allocated to the segment.

CSFB Financial Services income statement  1)
Change Change Change
in % from in % from 12 months in % from
in USD m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Net interest income 46 56 61 (18) (25) 219 318 (31)
Net commission and service fee income 425 406 476 5 (11) 1'716 1'893 (9)
Net trading income 19 26 35 (27) (46) 108 150 (28)
Other ordinary income (6) 13 25 31 32 (3)
Operating income 484 501 597 (3) (19) 2'074 2'393 (13)
Personnel expenses 237 254 223 (7) 6 1'008 1'164 (13)
Other operating expenses 161 162 189 (1) (15) 644 790 (18)
Operating expenses 398 416 412 (4) (3) 1'652 1'954 (15)
Gross operating profit 86 85 185 1 (54) 422 439 (4)
Depreciation of non-current assets 26 23 26 13 0 93 105 (11)
Valuation adjustments, provisions and losses (7) 11 8 15 16 (6)
Net operating profit before extraordinary and exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and taxes 67 51 151 31 (56) 314 318 (1)
Extraordinary income/(expenses), net 0 0 0 0 (9)
Taxes  2) (19) (14) (30) 36 (37) (88) (50) 76
Net operating profit before exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and minority interests (segment result) 48 37 121 30 (60) 226 259 (13)
1) Certain reclassifications have been made to conform to the current presentation. Certain acquisition-related costs, including acquisition interest, amortization of retention payments and amortization of acquired intangible assets and goodwill, exceptional items and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results.
2) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes would have been USD -46 m for 4Q2002.

CSFB Financial Services income statement  1)
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Net interest income 67 84 107 (20) (37) 342 538 (36)
Net commission and service fee income 625 600 818 4 (24) 2'677 3'199 (16)
Net trading income 26 38 60 (32) (57) 168 254 (34)
Other ordinary income (11) 20 43 48 54 (11)
Operating income 707 742 1'028 (5) (31) 3'235 4'045 (20)
Personnel expenses 346 379 386 (9) (10) 1'572 1'967 (20)
Other operating expenses 237 241 326 (2) (27) 1'005 1'336 (25)
Operating expenses 583 620 712 (6) (18) 2'577 3'303 (22)
Gross operating profit 124 122 316 2 (61) 658 742 (11)
Depreciation of non-current assets 39 34 46 15 (15) 145 179 (19)
Valuation adjustments, provisions and losses (13) 17 13 23 27 (15)
Net operating profit before extraordinary and exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and taxes 98 71 257 38 (62) 490 536 (9)
Extraordinary income/(expenses), net 0 0 0 0 (14)
Taxes  2) (27) (20) (52) 35 (48) (137) (85) 61
Net operating profit before exceptional items, acquisition-related costs, cumulative effect of change in accounting principle and minority interests (segment result) 71 51 205 39 (65) 353 437 (19)
1) Certain reclassifications have been made to conform to the current presentation. Certain acquisition-related costs, including acquisition interest, amortization of retention payments and amortization of acquired intangible assets and goodwill, exceptional items and cumulative effect of change in accounting principle not allocated to the segments are included in the business unit results.
2) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes would have been CHF -69 m for 4Q2002.

CSFB Financial Services key information
12 months
based on CHF amounts 4Q2002 3Q2002 4Q2001 2002 2001
Cost/income ratio  1) 88.0% 88.1% 73.7% 84.1% 86.1%
Average allocated capital in CHF m 701 984 1'072 939 997
Pre-tax margin  1) 13.9% 9.6% 25.0% 15.1% 12.9%
Personnel expenses/operating income  1) 48.9% 51.1% 37.5% 48.6% 48.6%
Net new assets institutional asset management in CHF bn (8.7) (12.2) 1.9 (31.3) 9.2
Net new assets Private Client Services in CHF bn 2.7 4.7 8.0 15.8
Growth in assets under management (2.7%) (7.6%) 16.1% (24.0%) 1.7%
Growth in discretionary institutional assets under management (4.6%) (9.3%) 14.6% (23.5%) 1.1%
of which net new assets (3.0%) (3.8%) 0.6% (8.6%) 2.6%
of which market movement and structural effects (1.6%) (5.5%) 5.8% (14.9%) (8.8%)
of which acquisitions/(divestitures) 8.2% 7.3%
Growth in net new assets Private Client Services 3.6% 5.3% 8.2% 14.6%
31.12.02 30.09.02 31.12.01
Assets under management in CHF bn 486.5 500.2 640.5
of which institutional asset management 412.8 423.8 508.8
of which Private Client Services 71.7 74.1 97.1
Discretionary assets under management in CHF bn 297.2 313.8 393.6
of which institutional asset management 278.7 292.0 364.2
of which mutual funds distributed 106.5 108.4 132.4
of which Private Client Services 18.5 21.7 29.4
Advisory assets under management in CHF bn 189.3 186.4 246.9
Number of employees 6'900 7'233 8'208
1) Based on the segment results, which exclude certain acquisition-related costs, exceptional items and cumulative effect of change in accounting principle not allocated to the segment.



RECONCILIATION OF OPERATING TO CONSOLIDATED RESULTS

Reconciliation of operating to consolidated results
The Group‘s consolidated results are prepared in accordance with Swiss GAAP, while the Group‘s segment reporting principles are applied to the presentation of segment results, including business unit results. The business unit results reflect the results of the separate segments constituting the respective business units as well as certain acquisition-related costs, exceptional items and the cumulative effect of a change in accounting principles that are not allocated to the segments. The business unit results also include certain other reclassifications that are adjusted at the Corporate Center in accordance with Swiss GAAP and reflected in the Group‘s consolidated results.

The acquisition-related costs and exceptional items excluded from the segment results and from the business unit operating basis results shown below include, among other items, acquisition interest, amortization of retention payments, amortization of acquired intangible assets and goodwill and the exceptional items described on page 24 or in the footnotes to the reconciliation tables. The reclassifications shown for the Credit Suisse Financial Services business unit reflect the amortization of acquired intangible assets and goodwill, exceptional items related to the focusing of the European initiative on private banking clients and the cumulative effect of a change in accounting principles. The reclassifications shown in the Credit Suisse First Boston business unit reflect acquisition-related costs, exceptional items and the cumulative effect of a change in accounting principles. Acquisition-related costs and exceptional items are excluded from the business unit operating results because management believes that this enables management and investors to assess the operating results or “cash earnings” and key performance indicators of the business. The effect of the change in accounting principles has been excluded from the business unit operating results to the extent that the positive current-period tax benefits resulted from prior-period losses.

The results presented in the column “Adjustments including Corporate Center” include the parent company operations, including Group financing initiatives as well as income and expense items related to centrally managed, own-use real estate, mainly comprised of bank premises within Switzerland. In addition, the column includes consolidation adjustments and adjustments to segment accounts related to management reporting policies and the reversal of certain reclassifications made in the business units.

The adjustments made for the Credit Suisse Financial Services business unit results include valuation adjustments, provisions and losses. This adjustment reflects the difference between the expected credit provisions recorded by Credit Suisse Financial Services’ banking segments and the actual credit provisions for the year, and also includes a charge relating to an adjustment in the method of estimating inherent losses related to lending activities as discussed on page 7. The impact of this charge, after tax, was fully offset by a release from the reserve for general banking risks, which was recorded as extraordinary income at Credit Suisse Group.

The reclassifications made for the Credit Suisse First Boston business unit results include, among others, brokerage, execution and clearing expenses and contractor costs. These reclassifications reflect, among others, the deduction from other operating expenses of brokerage, execution and clearing expenses of Credit Suisse First Boston, reclassified as a reduction of operating income; the deduction from other operating expenses of contractor costs of Credit Suisse First Boston, reclassified as an addition to personnel expenses; and the addition to operating income of expenses related to certain redeemable preferred securities of Credit Suisse First Boston, reclassified as minority interests. Credit Suisse First Boston‘s brokerage, execution and clearing expenses and contractor costs are presented in a manner that brings them in line with its US competitors in the investment banking industry and makes it easier for investors to compare the Credit Suisse First Boston business unit‘s operating expenses with those of its competitors. Swiss GAAP does not permit the Group to report brokerage, execution and clearing expenses and contractor costs as part of other operating expenses. The presentation of redeemable preferred securities of Credit Suisse First Boston, issued by consolidated special purpose entities as an expense reducing its operating income, is intended to more fairly present its operating results from its core businesses.

Credit Suisse Financial Services Credit Suisse First Boston
Re- Re- Re- Re- Adjust. incl. Credit
Operating classifi- classified Operating classifi- classified Corporate Suisse
4Q2002, in CHF m basis cations basis basis cations basis Center Group
Operating income 3'517 3'517 3'401 (80) 1) 3'321 (443) 6'395
Personnel expenses 1'405 3 2) 1'408 1'512 384 1) 3) 1'896 160 3'464
Other operating expenses 897 (1) 2) 896 1'184 1'184 (433) 1'647
Operating expenses 2'302 2'304 2'696 3'080 (273) 5'111
Gross operating profit 1'215 1'213 705 241 (170) 1'284
Depreciation of non-current assets 318 16 2) 334 156 156 144 634
Amortization of acquired intangible assets and goodwill 92 2) 4) 92 308 1) 308 3 403
Valuation adjustments, provisions and losses 105 105 993 984 3) 1'977 342 2'424
Profit/(loss) before extraordinary items, cumulative effect of change in accounting principle and taxes 792 682 (444) (2'200) (659) (2'177)
Extraordinary income/(expenses), net 24 24 383 (163) 3) 220 125 369
Cumulative effect of change in accounting principle 266 5) 266 254 5) 254 0 520
Taxes (332) 14 (318) 220 254 474 162 318
Net profit/(loss) before minority interests 484 654 159 (1'252) (372) (970)
Minority interests 51 51 0 0 (31) 20
Net profit/(loss) 705 (1'252) (403) (950)
1) Reflects acquisition interest of CHF 80 m allocated to operating income, amortization of retention payments of CHF 142 m allocated to personnel expenses and amortization of acquired intangible assets and goodwill of CHF 308 m.
2) Reflects exceptional items totaling CHF 73 m (CHF 60 m net of tax) in respect of focusing the European initiative on private banking clients allocated as follows: CHF 3 m to personnel expenses, CHF -1 m to operating expenses, CHF 16 m to depreciation of non-current assets and CHF 55 m to amortization of acquired intangible assets and goodwill.
3) Reflects exceptional items of CHF 1,389 m (CHF 1,269 m net of tax) as described on page 24 allocated as follows: CHF 242 m to personnel expenses, CHF 984 m to valuation adjustments, provisions and losses and CHF 163 m to extraordinary expenses.
4) Reflects acquisition-related costs of CHF 37 m allocated to amortization of acquired intangible assets and goodwill.
5) Reflects the cumulative effect of a change in accounting principle related to the recognition of deferred tax assets on net operating losses for Credit Suisse Financial Services of CHF 266 m and Credit Suisse First Boston of CHF 254 m.

Credit Suisse Financial Services Credit Suisse First Boston
Re- Re- Re- Re- Adjust. incl. Credit
Operating classifi- classified Operating classifi- classified Corporate Suisse
3Q2002, in CHF m basis cations basis basis cations basis Center Group
Operating income 2'289 2'289 3'856 (99) 1) 3'757 (380) 5'666
Personnel expenses 1'443 47 2) 1'490 2'031 148 1) 2'179 124 3'793
Other operating expenses 845 39 2) 884 1'157 1'157 (482) 1'559
Operating expenses 2'288 2'374 3'188 3'336 (358) 5'352
Gross operating profit/(loss) 1 (85) 668 421 (22) 314
Depreciation of non-current assets 260 29 2) 289 209 209 94 592
Amortization of acquired intangible assets and goodwill 31 2) 3) 31 308 1) 308 (2) 337
Valuation adjustments, provisions and losses 91 91 867 867 15 973
Profit/(loss) before extraordinary items and taxes (350) (496) (408) (963) (129) (1'588)
Extraordinary income/(expenses), net 6 6 (1) (1) (136) (131)
Taxes (693) 1 (692) 143 142 285 (3) (410)
Net profit/(loss) before minority interests (1'037) (1'182) (266) (679) (268) (2'129)
Minority interests 17 17 0 0 (36) (19)
Net profit/(loss) (1'165) (679) (304) (2'148)
1) Reflects acquisition interest of CHF 99 m allocated to operating income, amortization of retention payments of CHF 148 m allocated to personnel expenses and amortization of acquired intangible assets and goodwill of CHF 308 m.
2) Reflects exceptional items totaling CHF 119 m (no tax impact) in respect of focusing the European initiative on private banking clients allocated as follows: CHF 47 m to personnel expenses, CHF 39 m to operating expenses, CHF 29 m to depreciation of non-current assets and CHF 4 m to amortization of acquired intangible assets and goodwill.
3) Reflects acquisition-related costs of CHF 27 m allocated to amortization of acquired intangible assets and goodwill.

Credit Suisse Financial Services Credit Suisse First Boston
Re- Re- Re- Re- Adjust. incl. Credit
Operating classifi- classified Operating classifi- classified Corporate Suisse
4Q2001, in CHF m basis cations basis basis cations basis Center Group
Operating income 3'582 3'582 4'781 (209) 1) 2) 4'572 7 8'161
Personnel expenses 1'244 1'244 1'969 1'205 1) 2) 3'174 207 4'625
Other operating expenses 1'065 1'065 1'747 1'747 (540) 2'272
Operating expenses 2'309 2'309 3'716 4'921 (333) 6'897
Gross operating profit/(loss) 1'273 1'273 1'065 (349) 340 1'264
Depreciation of non-current assets 296 296 270 12 1) 282 121 699
Amortization of acquired intangible assets and goodwill 52 3) 52 379 2) 379 (4) 427
Valuation adjustments, provisions and losses 48 48 810 397 1) 1'207 34 1'289
Profit/(loss) before extraordinary items and taxes 929 877 (15) (2'217) 189 (1'151)
Extraordinary income/(expenses), net 8 8 0 0 (265) (257)
Taxes (151) 1 (150) 90 543 633 55 538
Net profit/(loss) before minority interests 786 735 75 (1'584) (21) (870)
Minority interests 22 22 (1) (1) 19 40
Net profit/(loss) 757 (1'585) (2) (830)
1) Reflects exceptional items in respect of cost reduction initiatives and a settlement with the US Securities and Exchange Commission and the National Association of Securities Dealers Regulation, Inc. (NASDR) of CHF 1,428 m (CHF 1,092 m net of tax) allocated as follows: CHF -34 m to operating income, CHF 985 m to personnel expenses, CHF 12 m to depreciation of non-current assets and CHF 397 m to valuation adjustments, provisions and losses.
2) Reflects acquisition interest of CHF 175 m allocated to operating income, amortization of retention payments of CHF 220 m allocated to personnel expenses and amortization of acquired intangible assets and goodwill of CHF 379 m.
3) Reflects acquisition-related costs of CHF 52 m allocated to amortization of acquired intangible assets and goodwill.

Credit Suisse Financial Services Credit Suisse First Boston
Re- Re- Re- Re- Adjust. incl. Credit
Operating classifi- classified Operating classifi- classified Corporate Suisse
12 months 2002, in CHF m basis cations basis basis cations basis Center Group
Operating income 11'830 11'830 18'360 (504) 1) 17'856 (1'648) 28'038
Personnel expenses 5'765 50 2) 5'815 9'658 891 1) 3) 10'549 546 16'910
Other operating expenses 3'465 38 2) 3'503 4'815 4'815 (1'699) 6'619
Operating expenses 9'230 9'318 14'473 15'364 (1'153) 23'529
Gross operating profit 2'600 2'512 3'887 2'492 (495) 4'509
Depreciation of non-current assets 1'000 45 2) 1'045 757 757 371 2'173
Amortization of acquired intangible assets and goodwill 198 2) 4) 198 1'303 1) 1'303 (2) 1'499
Valuation adjustments, provisions and losses 390 390 2'618 984 3) 3'602 438 4'430
Profit/(loss) before extraordinary items, cumulative effect of change in accounting principle and taxes 1'210 879 512 (3'170) (1'302) (3'593)
Extraordinary income/(expenses), net 48 48 408 (163) 3) 245 50 343
Cumulative effect of change in accounting principle 266 5) 266 254 5) 254 0 520
Taxes (1'525) 16 (1'509) 48 761 809 104 (596)
Net profit/(loss) before minority interests (267) (316) 968 (1'862) (1'148) (3'326)
Minority interests 151 151 0 0 (134) 17
Net profit/(loss) (165) (1'862) (1'282) (3'309)
1) Reflects acquisition interest of CHF 504 m allocated to operating income, amortization of retention payments of CHF 649 m allocated to personnel expenses and amortization of acquired intangible assets and goodwill of CHF 1,303 m.
2) Reflects exceptional items totaling CHF 192 m (CHF 179 m net of tax) in respect of focusing the European initiative on private banking clients allocated as follows: CHF 50 m to personnel expenses, CHF 38 m to operating expenses, CHF 45 m to depreciation of non-current assets and CHF 59 m to amortization of acquired intangible assets and goodwill.
3) Reflects exceptional items of CHF 1,389 m (CHF 1,269 m net of tax) as described on page 24 allocated as follows: CHF 242 m to personnel expenses, CHF 984 m to valuation adjustments, provisions and losses and CHF 163 m to extraordinary expenses.
4) Reflects acquisition-related costs of CHF 139 m allocated to amortization of acquired intangible assets and goodwill.
5) Reflects the cumulative effect of a change in accounting principle related to the recognition of deferred tax assets on net operating losses for Credit Suisse Financial Services of CHF 266 m and Credit Suisse First Boston of CHF 254 m.

Credit Suisse Financial Services Credit Suisse First Boston
Re- Re- Re- Re- Adjust. incl. Credit
Operating classifi- classified Operating classifi- classified Corporate Suisse
12 months 2001, in CHF m basis cations basis basis cations basis Center Group
Operating income 15'382 15'382 25'262 (862) 1) 2) 24'400 (628) 39'154
Personnel expenses 5'639 5'639 13'731 1'797 1) 2) 15'528 723 21'890
Other operating expenses 3'686 3'686 6'512 6'512 (1'804) 8'394
Operating expenses 9'325 9'325 20'243 22'040 (1'081) 30'284
Gross operating profit 6'057 6'057 5'019 2'360 453 8'870
Depreciation of non-current assets 818 818 951 12 1) 963 405 2'186
Amortization of acquired intangible assets and goodwill 116 3) 116 1'455 2) 1'455 (8) 1'563
Valuation adjustments, provisions and losses 383 383 1'541 397 1) 1'938 271 2'592
Profit/(loss) before extraordinary items and taxes 4'856 4'740 2'527 (1'996) (215) 2'529
Extraordinary income/(expenses), net 25 25 (15) (15) (239) (229)
Taxes (1'113) 2 (1'111) (524) 1'148 624 1 (486)
Net profit/(loss) before minority interests 3'768 3'654 1'988 (1'387) (453) 1'814
Minority interests (69) (69) (1) (1) (157) (227)
Net profit/(loss) 3'585 (1'388) (610) 1'587
1) Reflects exceptional items in respect of cost reduction initiatives and a settlement with the US Securities and Exchange Commission and the NASDR of CHF 1,428 m (CHF 1,092 m net of tax) allocated as follows: CHF -34 m to operating income, CHF 985 m to personnel expenses, CHF 12 m to depreciation of non-current assets and CHF 397 m to valuation adjustments, provisions and losses.
2) Reflects acquisition interest of CHF 828 m allocated to operating income, amortization of retention payments of CHF 812 m allocated to personnel expenses and amortization of acquired intangible assets and goodwill of CHF 1,455 m.
3) Reflects acquisition-related costs of CHF 116 m allocated to amortization of acquired intangible assets and goodwill.



CONSOLIDATED RESULTS | CREDIT SUISSE GROUP

Consolidated income statement
Change Change Change
in % from in % from 12 months in % from
in CHF m 4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Interest and discount income 4'119 4'233 5'127 (3) (20) 17'630 28'687 (39)
Interest and dividend income from trading portfolios 2'204 2'495 3'050 (12) (28) 9'957 13'078 (24)
Interest and dividend income from financial investments 156 298 133 (48) 17 733 514 43
Interest expenses (4'553) (4'945) (6'705) (8) (32) (20'284) (35'528) (43)
Net interest income 1'926 2'081 1'605 (7) 20 8'036 6'751 19
Commission income from lending activities 313 152 158 106 98 872 780 12
Commission income from securities and investment transactions 2'899 2'925 4'108 (1) (29) 13'658 16'879 (19)
Commission income from other services 334 399 374 (16) (11) 1'649 1'421 16
Commission expenses (246) (174) (261) 41 (6) (845) (965) (12)
Net commission and service fee income 3'300 3'302 4'379 0 (25) 15'334 18'115 (15)
Net trading income 109 40 852 173 (87) 2'254 8'913 (75)
Premiums earned, net 8'309 8'672 8'628 (4) (4) 34'811 32'195 8
Claims incurred and actuarial provisions (6'426) (6'853) (8'375) (6) (23) (28'791) (29'731) (3)
Commission expenses, net (549) (708) (459) (22) 20 (2'276) (2'040) 12
Investment income from the insurance business 54 (636) 1'783 (97) (432) 5'876
Net income from the insurance business 1'388 475 1'577 192 (12) 3'312 6'300 (47)
Income from the sale of financial investments 490 381 56 29 1'385 1'146 21
Income from investments in associates (18) (1) 59 65 166 (61)
Income from other non-consolidated participations 3 2 0 50 27 24 13
Real estate income 30 76 49 (61) (39) 194 171 13
Sundry ordinary income 86 284 461 (70) (81) 816 1'091 (25)
Sundry ordinary expenses (919) (974) (877) (6) 5 (3'385) (3'523) (4)
Other ordinary income/(expenses), net (328) (232) (252) 41 30 (898) (925) (3)
Operating income 6'395 5'666 8'161 13 (22) 28'038 39'154 (28)
Personnel expenses 3'464 3'793 4'625 (9) (25) 16'910 21'890 (23)
Other operating expenses 1'647 1'559 2'272 6 (28) 6'619 8'394 (21)
Operating expenses 5'111 5'352 6'897 (5) (26) 23'529 30'284 (22)
Gross operating profit 1'284 314 1'264 309 2 4'509 8'870 (49)
Depreciation of non-current assets  1) 634 592 699 7 (9) 2'173 2'186 (1)
Amortization of acquired intangible assets 165 162 203 2 (19) 693 793 (13)
Amortization of goodwill 238 175 224 36 6 806 770 5
Valuation adjustments, provisions and losses from the banking business 2'424 973 1'289 149 88 4'430 2'592 71
Depreciation, valuation adjustments and losses 3'461 1'902 2'415 82 43 8'102 6'341 28
Profit/(loss) before extraordinary items, cumulative effect of change in accounting principle and taxes (2'177) (1'588) (1'151) 37 89 (3'593) 2'529
Extraordinary income 626 (5) (7) 746 52
Extraordinary expenses (257) (126) (250) 104 3 (403) (281) 43
Cumulative effect of change in accounting principle  2) 520 520
Taxes  2) 318 (410) 538 (41) (596) (486) 23
Net profit/(loss) before minority interests (970) (2'129) (870) (54) 11 (3'326) 1'814
Minority interests 20 (19) 40 (50) 17 (227)
Net profit/(loss) (950) (2'148) (830) (56) 14 (3'309) 1'587

Certain reclassifications have been made to conform to the current presentation.









1) Includes amortization of Present Value of Future Profits (PVFP) from the insurance business.
2) In 4Q2002, Credit Suisse Group adopted a change in accounting principle relating to the recognition of deferred tax assets on net operating losses. If the change in accounting principle had not been adopted in 4Q2002, taxes would have been CHF -1,023 m for 4Q2002. The retroactive application of this change in accounting principle would have resulted in taxes for Q42002, 3Q2002 and 4Q2001 of CHF -198 m, CHF -306 m and CHF 755 m, respectively, and CHF -250 m for the 12 months 2001.

Consolidated balance sheet
Change Change
in % from in % from
in CHF m 31.12.02 30.09.02 31.12.01 30.09.02 31.12.01
Assets
Cash and other liquid assets 2'551 3'386 3'092 (25) (17)
Money market papers 25'125 24'621 32'027 2 (22)
Due from banks 195'778 201'045 203'785 (3) (4)
Receivables from the insurance business 12'290 9'932 11'823 24 4
Due from customers 182'143 195'762 186'151 (7) (2)
Mortgages 94'896 96'187 92'655 (1) 2
Securities and precious metals trading portfolios 173'133 179'645 208'374 (4) (17)
Financial investments from the banking business 33'394 37'007 37'306 (10) (10)
Investments from the insurance business 128'450 134'129 131'291 (4) (2)
Non-consolidated participations 1'792 1'632 1'846 10 (3)
Tangible fixed assets 8'152 8'683 9'422 (6) (13)
Intangible assets 18'359 19'579 22'850 (6) (20)
Accrued income and prepaid expenses 13'882 15'899 18'095 (13) (23)
Other assets 65'711 71'651 63'796 (8) 3
Total assets 955'656 999'158 1'022'513 (4) (7)
Subordinated assets 2'678 2'496 1'578 7 70
Receivables due from non-consolidated participations 728 850 276 (14) 164
Liabilities and shareholders‘ equity
Money market papers issued 22'178 19'876 19'252 12 15
Due to banks 287'884 293'456 335'932 (2) (14)
Payables from the insurance business 10'218 7'250 11'864 41 (14)
Due to customers in savings and investment deposits 39'739 39'397 38'547 1 3
Due to customers, other 258'244 277'046 261'752 (7) (1)
Medium-term notes (cash bonds) 2'599 2'831 3'019 (8) (14)
Bonds and mortgage-backed bonds 81'839 89'644 81'505 (9) 0
Accrued expenses and deferred income 17'463 18'826 25'512 (7) (32)
Other liabilities 56'070 68'793 56'493 (18) (1)
Valuation adjustments and provisions 11'557 9'956 11'362 16 2
Technical provisions for the insurance business 136'471 139'622 138'354 (2) (1)
Total liabilities 924'262 966'697 983'592 (4) (6)
Reserve for general banking risks 1'739 2'319 2'319 (25) (25)
Share capital 1'190 1'189 3'590 0 (67)
Capital reserve 20'710 19'460 19'446 6 7
Revaluation reserves for the insurance business 1'504 1'285 749 17 101
Reserve for own shares 1'950 1'950 2'469 0 (21)
Retained earnings 4'732 5'546 5'640 (15) (16)
Minority interests 2'878 3'071 3'121 (6) (8)
Net profit/(loss) (3'309) (2'359) 1'587 40
Total shareholders‘ equity 31'394 32'461 38'921 (3) (19)
Total liabilities and shareholders‘ equity 955'656 999'158 1'022'513 (4) (7)
Subordinated liabilities 19'704 20'700 20'892 (5) (6)
Liabilities due to non-consolidated participations 1'164 1'371 1'098 (15) 6

Off-balance sheet and fiduciary business
in CHF m 31.12.02 31.12.01
Credit guarantees in form of bills of exchange and other guarantees  1) 27'745 29'789
Bid bonds, delivery and performance bonds, letters of indemnity, other performance-related guarantees 4'680 5'056
Irrevocable commitments in respect of documentary credits 3'242 3'257
Other contingent liabilities 3'437 5'484
Contingent liabilities 39'104 43'586
Irrevocable commitments 86'051 129'864
Liabilities for calls on shares and other equity instruments 543 794
Confirmed credits 32 76
Total off-balance sheet 125'730 174'320
Fiduciary transactions 37'703 41'448

At 31.12.02, market value guarantees reported as derivatives totaled CHF 170.4 bn (nominal value). The associated replacement value reported on-balance sheet totaled CHF 10.3 bn.













1) Including credit guarantees of securities lent as arranger: 31.12.02: CHF 20.7 bn (31.12.01: CHF 21.1 bn).

Derivative instruments
Positive Negative Positive Negative
gross gross gross gross
Nominal replacement replacement Nominal replacement replacement
value value 1) value 1) value value 1) value 1)
in CHF bn 31.12.02 31.12.02 31.12.02 31.12.01 31.12.01 31.12.01
Interest rate products 10'647.2 185.4 181.0 9'120.8 97.0 98.7
Foreign exchange products 1'376.7 34.8 36.1 1'936.3 39.6 40.2
Precious metals products 19.8 0.9 2.5 29.5 1.3 1.8
Equity/index-related products 347.5 12.6 13.0 393.9 14.1 13.6
Other products 179.4 4.3 5.0 120.7 3.5 3.5
Total derivative instruments 12'570.6 238.0 237.6 11'601.2 155.5 157.8
1) Including replacement values for traded derivatives (futures and traded options) subject to daily margining requirements. Total positive and negative replacement values of traded derivatives amount to CHF 1.5 bn (31.12.01: CHF 1.8 bn) and CHF 1.1 bn (31.12.01: CHF 0.6 bn).

Currency translation rates
Average rate year-to-date Closing rate used in the
used in the income statement balance sheet as of
in CHF 4Q2002 3Q2002 4Q2001 31.12.02 30.09.02 31.12.01
1 USD 1.56 1.59 1.69 1.3902 1.4907 1.6754
1 EUR 1.47 1.47 1.51 1.4550 1.4646 1.4824
1 GBP 2.33 2.34 2.43 2.2357 2.3308 2.4282
100 JPY 1.24 1.26 1.39 1.1722 1.2257 1.2759

Calculation of earnings per share (EPS)
Change Change Change
in % from in % from 12 months in % from
4Q2002 3Q2002 4Q2001 3Q2002 4Q2001 2002 2001 2001
Net profit in CHF m (950) (2'148) (830) (56) 14 (3'309) 1'587
Diluted net profit in CHF m (951) (2'148) (830) (56) 15 (3'309) 1'588
Weighted average shares outstanding  1) 1'193'153'538 1'189'341'056 1'188'677'445 0 0 1'190'206'207 1'194'090'788 0
Dilutive impact  2) 253'011 544'427 7'213'154 (54) (96) 3'337'199 9'356'766 (64)
Weighted average shares, diluted 1'193'406'549 1'189'885'483 1'195'890'599 0 0 1'193'543'406 1'203'447'554 (1)
Basic earnings per share in CHF (0.80) (1.81) (0.70) (56) 14 (2.78) 1.33
Diluted earnings per share in CHF (0.80) (1.81) (0.69) (56) 16 (2.77) 1.32
1) Adjusted for weighted average shares repurchased.
2) From convertible bonds and outstanding options.

Income statement of the banking and insurance business  1)
Banking business
(incl. Corporate Center) Insurance business 2) Credit Suisse Group
12 months, in CHF m 2002 2001 2002 2001 2002 2001
Net interest income 7'984 6'680 8'036 6'751
Net commission and service fee income 15'350 18'136 15'334 18'115
Net trading income 1'946 8'913 2'254 8'913
Net income from the insurance business  3) 3'641 6'352 3'312 6'300
Other ordinary income/(expenses), net (296) (538) (602) (380) (898) (925)
Operating income 24'984 33'191 3'039 5'972 28'038 39'154
Personnel expenses 14'627 19'752 2'283 2'138 16'910 21'890
Other operating expenses 5'118 6'853 1'499 1'547 6'619 8'394
Operating expenses 19'745 26'605 3'782 3'685 23'529 30'284
Gross operating profit/(loss) 5'239 6'586 (743) 2'287 4'509 8'870
Depreciation of non-current assets 1'515 1'667 657 519 2'173 2'186
Amortization of acquired intangible assets 693 793 0 0 693 793
Amortization of goodwill 740 697 66 73 806 770
Valuation adjustments, provisions and losses from the banking business 4'430 2'592 4'430 2'592
Depreciation, valuation adjustments and losses 7'378 5'749 723 592 8'102 6'341
Profit/(loss) before extraordinary items, taxes and minority interests (2'139) 837 (1'466) 1'695 (3'593) 2'529
Extraordinary income 681 52 65 0 746 52
Extraordinary expenses (206) (50) (197) (231) (403) (281)
Cumulative effect of change in accounting principle 320 200 520
Taxes 289 (108) (885) (378) (596) (486)
Net profit/(loss) before minority interests (1'055) 731 (2'283) 1'086 (3'326) 1'814
Minority interests (151) (179) 168 (48) 17 (227)
Net profit/(loss) (1'206) 552 (2'115) 1'038 (3'309) 1'587
1) Income statements for the banking and insurance business are presented on a stand-alone basis.
2) Represents «Winterthur» Swiss Insurance Company
3) Insurance business: expenses due to the handling of both claims and investments are allocated to the income from the insurance business, of which CHF 615 m (2001: CHF 599 m) are related to personnel expenses and CHF 469 m (2001: CHF 371 m) to other operating expenses.

Statement of shareholders‘ equity
12 months 12 months
in CHF m 2002 2001
At beginning of financial year 38'921 43'522
Repayment out of share capital (2'379) (2'392)
Dividends paid 0 (14)
Dividends paid to minority interests (169) (161)
Capital increases, par value and capital surplus  1) 1'448 1'160
Cancellation of repurchased shares (542) (569)
Changes in scope of consolidation affecting minority interests (167) (253)
Foreign exchange impact (2'626) 112
Change in revaluation reserves from the insurance business, net 814 (4'298)
Change in reserve for general banking risks, net (580) 0
Minority interests in net profit/(loss) (17) 227
Net profit/(loss) (3'309) 1'587
At end of financial year 31'394 38'921
1) Includes CHF 1.25 bn proceeds related to Mandatory Convertible Securities issued by Credit Suisse Group Finance (Guernsey) Ltd.



LOANS

Due from banks
in CHF m 31.12.02 31.12.01
Due from banks, gross 195'866 203'821
Valuation allowance (88) (36)
Total due from banks, net 195'778 203'785

Due from customers and mortgages
in CHF m 31.12.02 31.12.01
Due from customers, gross 187'617 192'349
Valuation allowance (5'474) (6'198)
Due from customers, net 182'143 186'151
Mortgages, gross 97'037 95'685
Valuation allowance (2'141) (3'030)
Mortgages, net 94'896 92'655
Total due from customers and mortgages, net 277'039 278'806

Due from customers and mortgages by sector
in CHF m 31.12.02 31.12.01
Financial services 38'279 39'213
Real estate companies 16'472 17'627
Other services including technology companies 15'316 22'860
Manufacturing 13'273 12'791
Wholesale and retail trade 11'165 10'970
Construction 4'314 3'676
Transportation and communication 6'482 10'904
Health and social services 2'340 1'854
Hotels and restaurants 2'390 2'866
Agriculture and mining 2'317 1'600
Non-profit and international organizations 191 27
Commercial 112'539 124'388
Consumers 92'419 86'358
Public authorities 5'023 5'000
Lease financings 3'158 3'135
Professional securities transactions and securitized loans 71'515 69'153
Due from customers and mortgages, gross 284'654 288'034
Valuation allowance (7'615) (9'228)
Total due from customers and mortgages, net 277'039 278'806

Collateral of due from customers and mortgages
Mortgage Other Without Total
in CHF m collateral collateral collateral 31.12.02
Due from customers 5'106 129'300 47'737 182'143
Residential properties 68'055
Business and office properties 11'857
Commercial and industrial properties 10'970
Other properties 4'014
Mortgages 94'896 94'896
Total collateral 100'002 129'300 47'737 277'039
As of 31.12.01 98'557 121'338 58'911 278'806



CONSOLIDATED RESULTS | CREDIT SUISSE GROUP

Loan valuation allowance
in CHF m 31.12.02 31.12.01
Due from banks 88 36
Due from customers 5'474 6'198
Mortgages 2'141 3'030
Total loans valuation allowance 7'703 9'264
of which on principal 6'617 7'553
of which on interest 1'086 1'711

Roll forward of loan valuation allowance
in CHF m 31.12.02 31.12.01
At beginning of financial year 9'264 10'786
Net additions charged to income statement 2'616 1'613
Net write-offs (3'803) (3'805)
Balances acquired/(sold) 0 (3)
Provisions for interest 187 400
Foreign currency translation impact and other (561) 273
At end of financial year 7'703 9'264

Impaired loans  1)
in CHF m 31.12.02 31.12.01
With a specific allowance 11'714 14'654
Without a specific allowance 655 911
Total impaired loans, gross 12'369 15'565
Non-performing loans 6'355 7'960
Non-interest earning loans 2'325 2'808
Restructured loans 281 114
Potential problem loans  2) 3'408 4'683
Total impaired loans, gross 12'369 15'565
1) 31.12.01 restated.
2) Potential problem loans consist of loans where interest payments are being made but where, in the credit officer's assessment, some doubt exists as to the timing and/or certainty of the repayment of contractual principal.

Securities and precious metals trading portfolios
in CHF m 31.12.02 31.12.01
Listed on stock exchange 58'661 66'308
Unlisted 76'083 91'434
Debt instruments 134'744 157'742
of which own bonds and medium-term notes 1'520 1'037
Listed on stock exchange 33'208 44'202
Unlisted 3'935 5'123
Equity instruments 37'143 49'325
of which own shares 2'254 4'410
Precious metals 1'246 1'307
Total securities and precious metals trading portfolios 173'133 208'374
of which securities rediscountable or pledgeable with central banks 27'426 40'782

Investments from the insurance business
Gross Gross
Amortized unrealized unrealized
As of 31.12.02, in CHF m Book value cost gains losses Fair value
Debt securities issued by Swiss Federal Government, cantonal or local governmental entities 10'974 10'269 715 10 10'974
Debt securities issued by foreign governments 27'094 26'303 879 88 27'094
Corporate debt securities 22'517 21'210 1'399 92 22'517
Other 16'066 15'141 1'010 85 16'066
Debt securities 76'651 72'923 4'003 275 76'651
Equity securities 9'052 9'171 336 455 9'052
Total securities – available-for-sale 85'703 82'094 4'339 730 85'703
Debt securities 246
Equity securities 31
Total securities – trading 277
Own shares 44
Mortgage loans 10'175
Other loans 4'305
Real estate 7'431 10'057
Short-term investments and other 7'120
Investments from the insurance business 115'055
Equity securities 9'288
Debt securities 2'841
Short-term investments and other 1'069
Real estate 197
Investments where the investment risk is borne by the policyholder 13'395
Investments from the insurance business 128'450

Investments from the insurance business
Gross Gross
Amortized unrealized unrealized
As of 31.12.01, in CHF m Book value cost gains losses Fair value
Debt securities issued by Swiss Federal Government, cantonal or local governmental entities 8'287 8'205 152 70 8'287
Debt securities issued by foreign governments 19'503 19'252 474 223 19'503
Corporate debt securities 22'947 22'542 672 267 22'947
Other 15'823 15'409 543 129 15'823
Debt securities 66'560 65'408 1'841 689 66'560
Equity securities 22'332 22'145 2'406 2'219 22'332
Total securities – available-for-sale 88'892 87'553 4'247 2'908 88'892
Debt securities 1'858
Equity securities 37
Total securities – trading 1'895
Own shares 184
Mortgage loans 9'811
Other loans 4'648
Real estate 7'549 10'376
Short-term investments and other 3'793
Investments from the insurance business 116'772
Equity securities 10'934
Debt securities 2'495
Short-term investments and other 794
Real estate 296
Investments where the investment risk is borne by the policyholder 14'519
Investments from the insurance business 131'291

INFORMATION FOR INVESTORS

Credit Suisse Group shares
Ticker symbols
Stock exchange listings Bloomberg Reuters Telekurs
SWX Swiss Exchange/virt-x CSGN VX CSGZn.VX CSGN,380
Frankfurt CSX GR CSGZn.DE CSX,013
New York (ADS) 1) CSR US CSR.N CSR,065
1) 1 ADS represents 1 registered share.
Swiss security number 1213853
ISIN number CH0012138530
German security number DE 876 800
CUSIP number 225 401 108

Ratings
Agencies Credit Suisse Group Credit Suisse Credit Suisse First Boston Winterthur
Long term Short term Long term Short term Long term Short term
Moody‘s, New York Aa3 Aa3 P1 Aa3 P1 A1
Standard & Poor‘s, New York A A1 A+ A1 A+ A1 A
Fitch Ratings, New York AA– F1+ AA– F1+ AA– F1+ AA–

Financial calendar
Annual Report 2002 Friday, April 4, 2003
Annual General Meeting Friday, April 25, 2003
First quarter results 2003 Tuesday, May 6, 2003
Second quarter results 2003 Tuesday, August 5, 2003
Third quarter results 2003 Tuesday, November 4, 2003

Q4 AND FULL YEAR RESULTS 2002


PRESENTATION

   
INTRODUCTION
   
CONSOLIDATED RESULTS
   
CREDIT SUISSE FINANCIAL SERVICES
   
CREDIT SUISSE FIRST BOSTON
   
SUMMARY
   
   
   
   
   
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION


RESULTS OVERVIEW


SPECIAL ITEMS AFFECTING NET PROFIT

  (1) assuming break-even of insurance units based on current investment income only (2) non-continuing businesses: real estate and distressed trading, and "legacy" private equity

 


UPDATE ON KEY PRIORITIES
(1/2)


 

UPDATE ON KEY PRIORITIES
(2/2)


WINTERTHUR: BACKGROUND OF ANNOUNCED MEASURES

     
  Paradigm shift in the European insurance industry
       
    No more easy returns from the stock markets
       
    Capital base eroded, limiting growth options
       
    Increased focus on technical results and costs
       
     
  At Winterthur, a number of measures already initiated
       
    Investment strategy adapted
       
    Premium increases, cost reduction programs
       
    Selective re-underwriting to re-price/remove underperforming business
       
    Divestitures of several smaller operations
       


WINTERTHUR: KEY STRATEGY ELEMENTS

     
  Focus on cost management and profitability
       
    Leverage existing strengths and positions
       
    Prudently manage capital and risks
       
       
  Aligned management model
       
    Life and non-life divisions brought together in selected countries
       
    Realize synergies in distribution and support functions
       
    One Executive Board, one corporate center
       
       
  Operational excellence throughout the company
       
    Starting at the corporate center: focused support for market units - reduction of around 350 job positions in 2003
       
    Rigorous implementation of all measures already initiated
       
       
  Continued focus on selected core markets
     


WINTERTHUR: NEW EXECUTIVE BOARD


PRESENTATION
  
INTRODUCTION
   
CONSOLIDATED RESULTS
   
CREDIT SUISSE FINANCIAL SERVICES
   
CREDIT SUISSE FIRST BOSTON
   
SUMMARY
   
   
   
   
   
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION


REVENUES


OPERATING EXPENSES AND DEPRECIATION


PROVISIONS

(1)  totals include Corporate Center and adjustments but exclude exceptional provisions of CHF 397 m in Q4/01 and CHF 984 m in Q4/02


CSFB CREDIT-RELATED PROVISIONS

 
Record US default rates drove 22% increase in corporate credit provisions
   
Provisions for "legacy" assets (sales and  writedowns) to reduce exposure
   

(1) excluding restructuring-related charges of CHF 397 m in 2001 and CHF 984 m in 2002
(2) excluding "legacy" assets shown separately


IMPAIRED LOANS

(1) due from banks and customers and mortgages (excluding securities lending and reverse repurchase agreements)

 


BANKING CAPITAL RATIOS
AS OF DECEMBER 31, 2002

Pershing transaction to raise CSFB's and Group's tier 1 ratio by approximately
1% and 0.5%, respectively
   
(1)  consolidated banking entities Credit Suisse and Credit Suisse First Boston
(2)  including holding company and other banking units (e.g. independent private banks)
(3)   net of tax liability


WINTERTHUR GROUP EU SOLVENCY MARGIN
AS OF DECEMBER 31, 2002


PRESENTATION
  
INTRODUCTION
   
CONSOLIDATED RESULTS
   
CREDIT SUISSE FINANCIAL SERVICES
   
CREDIT SUISSE FIRST BOSTON
   
SUMMARY
   
   
   
   
   
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION


CREDIT SUISSE FINANCIAL SERVICES OVERVIEW


PRIVATE BANKING

(1) before exceptional items, cumulative effect of change in accounting principles and minority interests


CORPORATE & RETAIL BANKING


LIFE & PENSIONS


INSURANCE


CSFS OBJECTIVES FOR 2003

     
 Overall:
     
  Strong efforts initiated to further reduce cost base
     
     
 Private Banking:
     
  Lower asset base with impact on operating income
     
     
 Corporate & Retail Banking: 
     
  Some increase in credit risk costs likely
     
     
 Winterthur: 
     
  Measures taken to allow profitability for the full year
     
  However, quarterly results likely to be impacted by volatility in financial markets
     


PRESENTATION
 
INTRODUCTION
 
CONSOLIDATED RESULTS
 
CREDIT SUISSE FINANCIAL SERVICES
 
CREDIT SUISSE FIRST BOSTON
 
SUMMARY
   
   
   
   
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION


CREDIT SUISSE FIRST BOSTON OVERVIEW


CSFB RESULTS


CSFB NET OPERATING PROFIT CONTRIBUTION

 
2001
  2002      
   in USD million
 
         
  Q4   Q1   Q2   Q3   Q4   2001   2002  
                             
      Institutional Securities (83 ) 218   296   (183 ) 63   918   394  
                             
      CSFB Financial Services 121   70   71   37   48   259   226  
 
 
 
 
 
 
 
 
   Subtotal
38   288   367   (146 ) 111   1,177   620  
                             
      Acquisition-related costs
(152
)
(133
)
(138
)
(109
)
(100
) (647
)
(480
)
                             
   Net operating profit/(loss)(1)
(114
)
155
 
229
 
(255
)
11
 
530
 
140
 

(1) excluding exceptional items, cumulative effect of change in accounting principles and amortization of acquired intangible assets and goodwill


CSFB NET PROFIT/(LOSS)


REVENUES

 
   
Decline of 47% vs Q3/02 – developed credit products, incl. NCFE, lower securitization results and widened spreads
   
Decline in emerging markets, particularly in Brazil
   
Lower interest rate products, incl. seasonal effect
         
   
Decline of 22% vs. Q3/02
    Stable cash business but lower EDCU revenues due to limited arbitrage opportunities, equity market uncertainty and reduced customer trading
       
 
  Increase of 68% vs. Q3/02 – primarily Private Equity gain on sale of Swiss Re, with improvement across banking products
    M&A and equity new issuance activity remain depressed
         
    Decline of 3% vs. Q3/02
 
  Lower global equity market values, net asset outflows at CSAM and lower trading and customer debit volumes at Pershing and PCS


MARKET SHARES REMAIN STRONG

             
      2002   2001  
     
 
 
      Rank   Share   Rank    Share  
                     
  Global M&A   3   16.8%   4   22.6%  
                     
  Global Equity   4   8.2%   5   10.0%  
                     
  Global Debt   2   7.9%   3   8.4%  
                     
  High Yield   1   15.5%   1   16.4%  
                     
                     
 
Equity Research
Global
  1   21RA   3   18 RA  
                     
                     
 
Fixed Income Research
North America
  2   31 RA   3   32RA  
                     
   
RA = Ranked analysts

 


CSFB FINANCIAL SERVICES REVENUE DRIVERS

  Net asset outflow reduced vs. Q3/02
   
  Year-on-year AuM adversely impacted by performance, net asset outflows and sale of CSFB direct (USD 21 bn)
   
  Lower customer activity at Private Client Services
   


SUBSTANTIAL RIGHT-SIZING OF EXPENSE BASE

  Expenses down USD 2.7 bn (23%) vs 2001    
       
  Headcount reduced 14% during 2002; 23% since 2000    
       
  Progress in bringing compensation/revenue ratio more in line with peers    
       
  Cost reductions achieved while maintaining revenue-generating capabilities and market positions    
                 
                 
              Change vs 2001  
 

 

         
 
  (in USD billion)   2002   2001    in USD billion   in %  
                     
  Personnel expenses(1)   6,191   8,125   (1,934)   (24)  
                     
  Other operating expenses   3,086   3,852   (766)   (20)  
                     











      Total operating expenses   9,277   11,977   (2,700)   (23)  











                     
  Headcount (period-end)        23,424   27,302   (3,878)   (14)  
                     
  Compensation/revenue(2)   52.6%   54.4%          
                             
   
(1) excludes amortization of retention payments and exceptional items
(2) excludes acquisition interest, amortization of retention payments and exceptional items


"LEGACY" ASSETS EXPOSURE REDUCED BY 45%

2002 results include charges of
USD 1.1 bn from "legacy" assets
     
   
Net operating profit drag of USD 773 m
   
Exposure reduced in 2002 by USD
2.3 bn to USD 3.0 bn
   
 Q4/02 reduction of USD 0.8 bn
   
  Q4/02 charges of USD 273 m offset
by USD 309 m Swiss Re gains
   
  2003 P&L charges expected to be
substantially lower


   
(1) only non-continuing business, excluding unfunded commitments of USD 1.2 bn, 1.0 bn, 0.9 bn and 0.8 bn as of 12/99, 12/00, 12/01 and 12/02 respectively, of which USD 0.4 bn represents employee commitments as of 12/01 and 12/02  


CSFB OBJECTIVES FOR 2003

     
 
Will build on strong franchise and market share   
     
  Lower expense base in line with expected revenues
     
  Earnings drag from "legacy" assets largely behind us
     
  Provisions expected to decrease but vulnerable to general credit cycle
     
  Well positioned for improved return on equity
     


PRESENTATION
 
INTRODUCTION
 
CONSOLIDATED RESULTS
 
CREDIT SUISSE FINANCIAL SERVICES
 
CREDIT SUISSE FIRST BOSTON
 
SUMMARY
   
   
   
   
   
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION


SUMMARY

   
In the 4th quarter, we took further steps towards returning to profitability
   
  addressed a number of exceptional cost items
     
  strengthened our balance sheet and improved capital base
   
Core businesses continued to hold leadership positions in key markets
   
Economic and geopolitical outlook remains uncertain
   
Measures taken in 2002 expected to restore the Group to profitability in 2003
   


CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION

     This presentation contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements.

     Words such as “believes, “anticipates,” “expects,” "intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws.

    By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing.

     We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.


SUPPLEMENTS TO THE
FOURTH QUARTER 2002 AND
FULL YEAR RESULTS 2002
PRESENTATION


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CONTENT


             


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UPDATE ON ACCOUNTING CHANGES (1/2)









Deferred
tax assets
on net
operating
losses






Rationale: Increase peer comparability and eliminate difference to US GAAP

Cumulative effect
for prior years:
CHF 266 million at CSFS
 
CHF 254 million at CSFB (USD 162 million)
   
  Reported in separate P&L line item
   
  Excluded from net operating profit
   

Effect on taxes for
financial year 2002:

CHF 472 million at CSFS
 
CHF 868 million at CSFB (USD 556 million)
   
  Reported in normal tax result
   
  Included in net operating profit
   


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UPDATE ON ACCOUNTING CHANGES
(2/2)

 

Inherent
loss allowance in loan portfolio
    Rationale:  
Consistent with anticipated EBK change in estimate guidelines
           
     
In line with peers general trend of deteriorating credit environment
 
    CSFS:  
CHF 245 million
           
     
Current ACP model in banking already compliant with EBK guidelines
           
       
Charges recorded at Corporate Center
 

    CSFB:  
CHF 530 million (USD 340 m)
           
       
Included in BU/segment results
 

  Neutral to net operating profit due to release of reserves for general banking risks of CHF 580 m recorded as extraordinary income

Note: figures above exclude CHF 3 million from exchange rate impact


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PRIVATE BANKING
DEVELOPMENT OF GROSS MARGIN


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PRIVATE BANKING
AUM BY PRODUCT & CURRENCY


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WINTERTHUR GROUP
INVESTMENT RESULT
(1)
(1/3)
                             
                             
          2002(1)   
             
 
      12M/02(1)       Q1   Q2   Q3   Q4  
                             















  Current income   5,096       1,236   1,435   1,203 1,222  
                             
  Realized gains   5,421       1,346   1,389   2,353   333  
                             
  Realized losses   (4,738)       (647)   (2,129)   (1,589)   (373)  
                             
  Impairments    (3,887)       (942)   (857)   (1,413)   (675)  
                             
  Other   (464)       (114)   (100)   (135)   (115)  
     
     
 
 
 
 
  Investment Income (P&L)   1,428       879   (262)   419   392  















   
(1) general account only
Note: Q1 to Q3 reclassified to the current presentation format, including real estate own use, interest paid from current income and realized gains/losses to other


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WINTERTHUR GROUP
INVESTMENT RESULT
(1)
(2/3)
   
Development of gross unrealized losses in equity portfolio
   

   
  Given flat markets, unrealized losses are recognized in the P&L after 6 months as an impairment
   
  NOP impact highly country-specific depending on whether the investment risk is borne by the company or the policyholder
   
  Current unrealized losses in Q4/02 substantially lower than at year-end 2001 and also improved vs Q3/Q2
   
    Taking only the NOP relevant portion into account, unrealized losses decreased 38% vs Q3/02 level
   

(1) general account only; totals different from published figures in quarterly report due to consolidation effects


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WINTERTHUR GROUP
INVESTMENT RESULT
(1)
(3/3)
           
           
  in CHF m(1) Life &
Pensions
Insurance  Winterthur
Group
 
           
  Net investment income 2001
(insurance chart of account) 
4,766 2,217 6,983  
           
  Net investment income 2002
(insurance chart of account)  
1,438 (10)  1,428  
           
  Delta: Net investment income 2001/2002
(insurance chart of account) 
(3,328) (2,227) (5,554)  
           
  Impact on operating income
(bancassurance chart of account)
(1,800) (1,800) (3,600)  
           
  Impact on net operating profit (1,600) (1,700) (3,300)  
           
   
(1) general account only


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WINTERTHUR GROUP 
INVESTMENT PORTFOLIO – ASSET ALLOCATION

    

Responsive to equity market development
     
 
reduction of equity securities from CHF 22.5 bn (18%) to 9.1 bn (7%) in 2002
     
  "investment view" equity exposure stands at CHF 8.0 bn (6%)(1)


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WINTERTHUR GROUP
INVESTMENT PORTFOLIO –
BY COUNTERPARTY RATING


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WINTERTHUR GROUP
EQUITY BASE STRENGTHENED IN 2002

CSG capital injection of CHF 3.7 bn(1) eligible solvency capital to maintain and strengthen capital
   
Consolidated EU group solvency now at 167%
   
Group has sufficient capital to sustain growth in the near future

(1) CHF 2.6 bn equity capital contribution and CHF 1.1 bn hybrid debt (2) net of tax/shadow


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LIFE & PENSIONS
GROSS PREMIUMS WRITTEN
% of total, YTD


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WINTERTHUR INSURANCE
SPLIT BY LINE OF BUSINESS & COMBINED RATIOS

(1) in local currencies


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WINTERTHUR INSURANCE
PREMIUM INCREASES OFFSET BY DISPOSALS

 
 
Gross Written Premiums by Region (CHF bn)

 
    2002 2001 Growth
Market Position
(1)
  United Kingdom
5.0
3.8
32%
5th
 
 
  North America
3.4
3.2
6%
>20
 
 
  Switzerland
2.9
2.7
7.4%
1st
 
 
  Germany
2.5
2.5
0%
14th
 
 
  Italy
1.9
1.8
6%
8th
 
 
  Other, disposals
2.7
4.4
-39%
n/a
 
 
  Total
18.4
18.4
0%
7th
(2)
 
(1) based on 2001 GWP
(2)  total European


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CREDIT SUISSE FIRST BOSTON
REVENUE DETAIL 2002


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CREDIT SUISSE FIRST BOSTON
EMERGING MARKETS EXPOSURE BY REGION

31.12.02
in USD m
Americas      CIS/ Europe       Mid. East/ Africa        Asia / Pacific     Total Global   


   
   
   
   
 
Loans
1,299
 
1,243
 
567
 
1,365
 
4,474
 
                             
Loan equivalent exposure 
586
 
304
 
309
 
476
 
1,675
 
    Money market
0
 
0
 
0
 
 
0
 
    F/X, precious metals
586
 
304
 
309
 
476
 
1,675
 
    Derivatives 
0
 
0
 
0
 
0
 
0
 
                             
Trading positions 
238 
 
904
 
843
 
3,077
 
5,062 
 
    Fixed income
157
 
887
 
826
 
2,827
 
4,697
 
    Equities
81 
 
17
 
17 
 
249 
 
364
 
                             
Reverse repos
462
 
120
 
47
 
76
 
705
 
                             
Total, gross
  2,585
 
  2,571
 
1,766
 
4,993
 
11,916
 
    Net notional FX position
(108)
 
(314)
 
(737)
 
(1,739
 
(2,897)
 
    Provisions
(197)
 
(13)
 
(18)
 
(219)
 
(447)
 
                             
Net exposure
2,281
 
2,244
 
1,011
 
3,035
 
8,572
 


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CREDIT SUISSE FIRST BOSTON
EMERGING MARKETS EXPOSURE BY SELECTED COUNTRIES

31.12.02
in USD m
Argentina
 
Brazil
 
Mexico
 
Russia
 
Indonesia
 



   
   
   
   
 
Loans
221
 
258
 
394
 
500
 
415
 
                               
Loan equivalent exposure
56
 
96
 
311
 
44
 
49
 
    Money market
0
 
0
 
0
 
0
 
0
 
    F/X, precious metals
56
 
96
 
311
 
44
 
49
 
    Derivatives 
0
 
0
 
0
 
0
 
0
 
                               
Trading positions
48
 
78
 
2
 
281
 
329
 
    Fixed income
48
 
0
 
0
 
270
 
328
 
    Equities
0
 
78
 
2
 
11
 
2
 
                               
Reverse repos
11
 
327
 
36
 
67
 
0
 
                               
Total, gross
336
 
759
 
743
 
891
 
793
 
    Net notional FX position
0
 
(409
 
)
303
 
(166
 
)
22
 
    Provisions
(164
 
)
5
 
(17
 
)
0
 
(169
)
                               
Net exposure
173
 
345
 
1,029
 
726
 
646
 

 


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CREDIT SUISSE FIRST BOSTON
COUNTERPARTY EXPOSURE BY INDUSTRY

Selected CSFB Exposures (as of December 31, 2002)
in USD m      
Industry
Current exposure
Undrawn commitm.
Total exposure
Telecom service providers 1,720 2,185 3,905
Telecom manufacturing 179 230 409
Merchant energy 1,267 258 1,525
Airlines 583 425 1,008

Note:
Current exposure equals committed amount (includes only drawn commitments) for lending plus mark-to-market for counterparty trading less credit protection

Total exposure equals "current exposure" plus undrawn commitments


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CREDIT SUISSE FIRST BOSTON
"LEGACY" ASSETS EXPOSURE

Note: unfunded commitments as of 12/01 and 12/02 include USD 0.4 bn employee commitments


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CREDIT SUISSE FIRST BOSTON
"LEGACY" ASSETS P&L CHARGES

Charges related to "legacy" assets
in CSFB's income statement
 in USD million Real Estate   Distressed Portfolio   Private Equity   Total  
2002                
Operating Income  (120
)
(523 
(275 
)  
(919
)
Provisions
(154 
)  
-   -   (154
)
Taxes
77    147    77    301
 
 
 
 
 
 
 
Net Operating Profit/(Loss) 
(197
)  
(377
)  
(199
)  
(773
)

Q4/02  
 
 
 
Operating Income (14
(144
(123
(281
)
Provisions 8
-
-
8
Taxes 2
40
34
76
 
 

 

 

Net Operating Profit/(Loss) (4
(103
(89
(196
)

                 

 


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CREDIT SUISSE FIRST BOSTON
PERSHING SALE

Benefits of
Transaction
     
   

Focus resources on core businesses; avoid further capital investment

     
    Strengthen CSFB's and Group's capital base via elimination of USD 500 m of goodwill, USD 900 m in acquired intangibles and a reduction of USD 1.6 bn in risk-weighted assets
     
    Cash proceeds of USD 2.7 bn; including repayment of subordinated debt; a pre-closing dividend of approximately USD 800 m is anticipated
     
    Financial Services strategy remains in place, albeit on smaller scale
       
Accounting
Impact
    Q4/02
     
    After tax loss of USD 250 m driven by low tax basis in Pershing; USD 86 m pre-tax loss (excl. USD 50 m performance-related payment)
     
    Effective 1/1/03
     
    Pershing carried as equity investment
     
    Cease amortizing goodwill and acquired intangibles with net effect of USD 144 m in 2002
     
    2002 operating income and operating expenses were USD 854 m and USD 661 m, respectively
     


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CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION

This presentation contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements.

Words such as “believes,” “anticipates,” “expects,” "intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing.

We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.


Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  CREDIT SUISSE GROUP
  (Registrant)
   
Date February 25, 2003 By: /s/ David Frick
  (Signature)*
* Print the name and title of the signing officer under his signature. Member of the Executive Board
   
  By: /s/ Karin Rhomberg Hug
  (Signature)*
  Managing Director