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 ¹ in 2023, compared to CHF 6.483 billion ² in 2022. Net revenues for the Swiss Bank were CHF 3.409 billion ³ in 2023, compared to CHF 3.464 billion ⁴ in 2022. Net revenues for Asset Management were CHF 1.127 billion ⁵ in 2023, compared to CHF 1.283 billion ⁶ in 2022. Net revenues for the Investment Bank were CHF 4.145 billion ⁷ in 2023, compared to CHF 4.808 billion ⁸ in 2022. Net revenues for NCL were CHF -0.003 billion ⁹ in 2023, compared to CHF -0.003 billion ¹⁰ in 2022.

The Wealth Management segment reported net new assets of CHF 7.5 billion ¹¹ in 2023. The Asset Management segment had assets under management of CHF 377.6 billion ¹² as of year-end 2023, compared to CHF 401.4 billion ¹³ in 2022.

On March 19, 2023, UBS Group AG agreed to acquire Credit Suisse AG for CHF 3 billion ¹⁴ in an all-share transaction. The acquisition closed on June 12, 2023 ¹⁵. During 2023, the company recorded a goodwill impairment of CHF 0.4 billion ¹⁶ and a write-down of CHF 15.0 billion ¹⁷ on Additional Tier 1 (AT1) capital instruments. The company also recorded litigation provisions of CHF 0.7 billion ¹⁸ in 2023. Net outflows of assets under management were CHF 112.9 billion ¹⁹ in 2023.

Total revenues for 2023 were CHF 14.746 billion ²⁰, compared to CHF 16.035 billion ²¹ in 2022. Net loss attributable to shareholders was CHF 3.0 billion ²² in 2023, compared to a net loss of CHF 7.3 billion ²³ in 2022. The basic loss per share was CHF 0.77 ²⁴ in 2023, compared to a basic loss per share of CHF 1.86 ²⁵ in 2022.

Business Outlook

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 ²⁶ by 2025. Restructuring expenses of CHF 0.9 billion ²⁷ 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 ²⁸. The AT1 write-down of CHF 15.0 billion ²⁹ eliminated all outstanding AT1 capital instruments.

The company faced significant headwinds including net asset outflows of CHF 112.9 billion ³⁰ 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 ³¹ recorded in 2023. The integration with UBS presents execution risk and potential for further client attrition.

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 ³² in 2023. The company faces substantial litigation and regulatory risk, with litigation provisions of CHF 0.7 billion ³³ recorded in 2023 and ongoing investigations. The AT1 write-down of CHF 15.0 billion ³⁴ 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 ³⁵ as of year-end 2023.

Management 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 ³⁶ for 2023, an improvement from the CHF 7.3 billion ³⁷ loss in 2022, driven by lower litigation and impairment charges.

View Source Annual Report on SEC.gov ↗

References

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

Analysis on 9/27/2026