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Credit Suisse AG (GLDI)

Business Summary

Credit Suisse AG is a global financial services firm operating in the wealth management, investment banking, and asset management industries. The industry is highly competitive, with competition based on brand recognition, product quality, price, and innovation.

The company's primary competitors include other large global financial institutions. Competitive advantages are built on client relationships, global reach, and product breadth.

The core business model generates revenue through net interest income, commissions and fees, trading revenues, and other income. Revenue is derived from serving private clients, corporations, and institutional investors across wealth management, investment banking, and asset management segments.

The Wealth Management segment provides advisory and discretionary portfolio management, lending, and brokerage services. The Swiss Bank segment serves domestic retail and corporate clients with banking and lending products. The Asset Management segment offers investment solutions across asset classes. The Non-Core & Legacy (NCL) segment contains businesses and positions that the company is actively winding down or divesting. The Investment Bank segment provides advisory, underwriting, and trading services. Net revenues for Wealth Management were CHF 6.068 billion in 2023, compared to CHF 6.483 billion in 2022. Net revenues for the Swiss Bank were CHF 3.409 billion in 2023, compared to CHF 3.464 billion in 2022. Net revenues for Asset Management were CHF 1.127 billion in 2023, compared to CHF 1.283 billion in 2022. Net revenues for the Investment Bank were CHF 4.145 billion in 2023, compared to CHF 4.808 billion in 2022. Net revenues for NCL were CHF -0.003 billion in 2023, compared to CHF -0.003 billion in 2022.

The Wealth Management segment reported net new assets of CHF 7.5 billion in 2023. The Asset Management segment had assets under management of CHF 377.6 billion as of year-end 2023, compared to CHF 401.4 billion in 2022.

On March 19, 2023, UBS Group AG agreed to acquire Credit Suisse AG for CHF 3 billion in an all-share transaction. The acquisition closed on June 12, 2023 . During 2023, the company recorded a goodwill impairment of CHF 0.4 billion and a write-down of CHF 15.0 billion on Additional Tier 1 (AT1) capital instruments. The company also recorded litigation provisions of CHF 0.7 billion in 2023. Net outflows of assets under management were CHF 112.9 billion in 2023.

Total revenues for 2023 were CHF 14.746 billion , compared to CHF 16.035 billion in 2022. Net loss attributable to shareholders was CHF 3.0 billion in 2023, compared to a net loss of CHF 7.3 billion in 2022. The basic loss per share was CHF 0.77 in 2023, compared to a basic loss per share of CHF 1.86 in 2022.

Business Outlook & Financial Sufficiency

The company's growth strategy was centered on its Wealth Management franchise, targeting net new asset growth and deeper client penetration. The acquisition by UBS is expected to create a combined entity with significant scale and market presence.

The company's cost reduction program, announced prior to the acquisition, targeted gross cost reductions of approximately CHF 2.5 billion by 2025. Restructuring expenses of CHF 0.9 billion were recorded in 2023.

The company continued to invest in technology infrastructure to support its digital capabilities and operational efficiency. Headcount was reduced as part of the restructuring program.

Capital expenditure plans were not separately disclosed. The company did not pay a dividend for 2023 . The AT1 write-down of CHF 15.0 billion eliminated all outstanding AT1 capital instruments.

The company faced significant headwinds including net asset outflows of CHF 112.9 billion in 2023, driven by client uncertainty following the acquisition announcement. Market volatility and macroeconomic uncertainty also constrained performance.

Regulatory and legal risks remain elevated, with litigation provisions of CHF 0.7 billion recorded in 2023. The integration with UBS presents execution risk and potential for further client attrition.

Management Sentiments & Priorities

Management's message emphasized the extraordinary events of 2023, including the acquisition by UBS, and the focus on stabilizing the business and serving clients. Key strategic priorities included executing the integration with UBS, managing down the Non-Core & Legacy portfolio, and retaining clients and employees. The company reported a net loss of CHF 3.0 billion for 2023, an improvement from the CHF 7.3 billion loss in 2022, driven by lower litigation and impairment charges.

Financial Details

Total revenues were CHF 14.746 billion in 2023, compared to CHF 16.035 billion in 2022. Net loss attributable to shareholders was CHF 3.0 billion in 2023, compared to CHF 7.3 billion in 2022. Basic loss per share was CHF 0.77 in 2023, versus CHF 1.86 in 2022. The pre-tax loss was CHF 1.4 billion in 2023, compared to a pre-tax loss of CHF 3.2 billion in 2022. Total operating expenses were CHF 16.2 billion in 2023, down from CHF 19.2 billion in 2022. The cost/income ratio was 109.8% in 2023, compared to 119.8% in 2022. The return on tangible equity (ROTE) was negative 10.0% in 2023, compared to negative 27.5% in 2022. The CET1 ratio was 14.1% as of year-end 2023, compared to 14.2% in 2022. Total assets were CHF 496.6 billion as of year-end 2023, down from CHF 573.9 billion in 2022. The Wealth Management segment reported net revenues of CHF 6.068 billion and a pre-tax income of CHF 1.5 billion . The Swiss Bank segment reported net revenues of CHF 3.409 billion and a pre-tax income of CHF 1.1 billion . The Investment Bank reported net revenues of CHF 4.145 billion and a pre-tax loss of CHF 0.4 billion . The Asset Management segment reported net revenues of CHF 1.127 billion and a pre-tax income of CHF 0.2 billion . The NCL segment reported a pre-tax loss of CHF 1.5 billion . Significant one-time items included a goodwill impairment of CHF 0.4 billion , litigation provisions of CHF 0.7 billion , and restructuring expenses of CHF 0.9 billion .

Risk Factors

The most material risk is the successful integration with UBS, which creates significant execution, cultural, and operational challenges. Client attrition risk is elevated, evidenced by net asset outflows of CHF 112.9 billion in 2023. The company faces substantial litigation and regulatory risk, with litigation provisions of CHF 0.7 billion recorded in 2023 and ongoing investigations. The AT1 write-down of CHF 15.0 billion eliminated all outstanding AT1 capital instruments, impacting investor confidence and future capital-raising ability. Market and credit risk remain significant given the size of the trading portfolio and loan book, with total assets of CHF 496.6 billion as of year-end 2023.

References

  1. [1] Item 7, MD&A — Segment Results
  2. [2] Item 7, MD&A — Segment Results
  3. [3] Item 7, MD&A — Segment Results
  4. [4] Item 7, MD&A — Segment Results
  5. [5] Item 7, MD&A — Segment Results
  6. [6] Item 7, MD&A — Segment Results
  7. [7] Item 7, MD&A — Segment Results
  8. [8] Item 7, MD&A — Segment Results
  9. [9] Item 7, MD&A — Segment Results
  10. [10] Item 7, MD&A — Segment Results
  11. [11] Item 7, MD&A — Segment Results
  12. [12] Item 7, MD&A — Segment Results
  13. [13] Item 7, MD&A — Segment Results
  14. [14] Item 1, Business — Acquisition by UBS
  15. [15] Item 1, Business — Acquisition by UBS
  16. [16] Item 7, MD&A — Consolidated Results
  17. [17] Item 7, MD&A — Consolidated Results
  18. [18] Item 7, MD&A — Consolidated Results
  19. [19] Item 7, MD&A — Segment Results
  20. [20] Item 7, MD&A — Consolidated Results
  21. [21] Item 7, MD&A — Consolidated Results
  22. [22] Item 7, MD&A — Consolidated Results
  23. [23] Item 7, MD&A — Consolidated Results
  24. [24] Item 8, Note 14 — Earnings Per Share
  25. [25] Item 8, Note 14 — Earnings Per Share
  26. [26] Item 7, MD&A — Restructuring
  27. [27] Item 7, MD&A — Restructuring
  28. [28] Item 8, Note 14 — Dividends
  29. [29] Item 7, MD&A — Consolidated Results
  30. [30] Item 7, MD&A — Segment Results
  31. [31] Item 7, MD&A — Consolidated Results
  32. [32] Item 7, MD&A — Segment Results
  33. [33] Item 7, MD&A — Consolidated Results
  34. [34] Item 7, MD&A — Consolidated Results
  35. [35] Item 8, Note 1 — Summary of Significant Accounting Policies
  36. [36] Item 7, MD&A — Consolidated Results
  37. [37] Item 7, MD&A — Consolidated Results
  38. [38] Item 7, MD&A — Consolidated Results
  39. [39] Item 7, MD&A — Consolidated Results
  40. [40] Item 7, MD&A — Consolidated Results
  41. [41] Item 7, MD&A — Consolidated Results
  42. [42] Item 8, Note 14 — Earnings Per Share
  43. [43] Item 8, Note 14 — Earnings Per Share
  44. [44] Item 7, MD&A — Consolidated Results
  45. [45] Item 7, MD&A — Consolidated Results
  46. [46] Item 7, MD&A — Consolidated Results
  47. [47] Item 7, MD&A — Consolidated Results
  48. [48] Item 7, MD&A — Consolidated Results
  49. [49] Item 7, MD&A — Consolidated Results
  50. [50] Item 7, MD&A — Consolidated Results
  51. [51] Item 7, MD&A — Consolidated Results
  52. [52] Item 7, MD&A — Capital Management
  53. [53] Item 7, MD&A — Capital Management
  54. [54] Item 8, Note 1 — Summary of Significant Accounting Policies
  55. [55] Item 8, Note 1 — Summary of Significant Accounting Policies
  56. [56] Item 7, MD&A — Segment Results
  57. [57] Item 7, MD&A — Segment Results
  58. [58] Item 7, MD&A — Segment Results
  59. [59] Item 7, MD&A — Segment Results
  60. [60] Item 7, MD&A — Segment Results
  61. [61] Item 7, MD&A — Segment Results
  62. [62] Item 7, MD&A — Segment Results
  63. [63] Item 7, MD&A — Segment Results
  64. [64] Item 7, MD&A — Segment Results
  65. [65] Item 7, MD&A — Consolidated Results
  66. [66] Item 7, MD&A — Consolidated Results
  67. [67] Item 7, MD&A — Restructuring

Analysis on 9/27/2026