UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
April 23, 2020
Commission File Number 001-15244
CREDIT SUISSE GROUP AG
(Translation of registrant’s name into English)
Paradeplatz 8, 8001 Zurich, Switzerland
(Address of principal executive office)

Commission File Number 001-33434
CREDIT SUISSE AG
(Translation of registrant’s name into English)
Paradeplatz 8, 8001 Zurich, Switzerland
(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or
Form 40-F.
   Form 20-F      Form 40-F   
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.




Explanatory note
On April 23, 2020, the Credit Suisse Earnings Release 1Q20 was published. A copy of the Earnings Release is attached as an exhibit to this report on Form 6-K. This report on Form 6-K (including the exhibit hereto) is hereby (i) incorporated by reference into the Registration Statement on Form F-3 (file no. 333-218604) and the Registration Statements on Form S-8 (file nos. 333-101259, 333-208152 and 333-217856), and (ii) shall be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended, except, in the case of both (i) and (ii), the information under “Group and Bank differences” and “Selected financial data – Bank” shall not be incorporated by reference into, or be deemed “filed”, with respect to the Registration Statements on Form S-8 (file nos. 333-101259, 333-208152 and 333-217856).
The 1Q20 Credit Suisse Financial Report as of and for the three months ended March 31, 2020 will be published on or about May 7, 2020.
Credit Suisse Group AG and Credit Suisse AG file an annual report on Form 20-F and file quarterly reports, including unaudited interim financial information, and furnish or file other reports on Form 6-K with the US Securities and Exchange Commission (SEC) pursuant to the requirements of the Securities Exchange Act of 1934, as amended. The SEC reports of Credit Suisse Group AG and Credit Suisse AG are available to the public over the internet at the SEC’s website at www.sec.gov. The SEC reports of Credit Suisse Group AG and Credit Suisse AG are also available under “Investor Relations” on Credit Suisse Group AG’s website at www.credit-suisse.com and at the offices of the New York Stock Exchange, 20 Broad Street, New York, NY 10005.
Unless the context otherwise requires, references herein to “Credit Suisse Group,” “Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group AG and its consolidated subsidiaries and the term “the Bank” means Credit Suisse AG, the direct bank subsidiary of the Group, and its consolidated subsidiaries.
SEC regulations require certain information to be included in registration statements relating to securities offerings. Such additional information for the Group and the Bank is included in this report on Form 6-K, which should be read together with the Group’s and the Bank’s annual report on Form 20-F for the year ended December 31, 2019 (Credit Suisse 2019 20-F) filed with the SEC on March 30, 2020 and the Group’s earnings release for the first quarter of 2020 (Credit Suisse Earnings Release 1Q20), filed with the SEC as Exhibit 99.1 hereto.
This report filed on Form 6-K also contains certain information about Credit Suisse AG relating to its results as of and for the three months ended March 31, 2020. Credit Suisse AG, a Swiss bank and joint stock corporation established under Swiss law, is a wholly-owned subsidiary of the Group. Credit Suisse AG’s registered head office is in Zurich, and it has additional executive offices and principal branches in London, New York, Hong Kong, Singapore and Tokyo.
References herein to “CHF” are to Swiss francs.
Forward-looking statements
This Form 6-K and the information incorporated by reference in this Form 6-K include statements that constitute forward-looking statements. In addition, in the future the Group, the Bank and others on their behalf may make statements that constitute forward-looking statements.
When evaluating forward-looking statements, you should carefully consider the cautionary statement regarding forward-looking information, the risk factors and other information set forth in the Credit Suisse 2019 20-F, subsequent annual reports on Form 20-F filed by the Group and the Bank with the SEC, the Group’s and the Bank’s reports on Form 6-K furnished to or filed with the SEC, and other uncertainties and events.
2

Group and Bank differences
The business of the Bank is substantially the same as the business of the Group, and substantially all of the Bank’s operations are conducted through the Swiss Universal Bank, International Wealth Management, Asia Pacific, Global Markets and Investment Banking & Capital Markets. Certain Corporate Center activities of the Group, such as hedging activities relating to share-based compensation awards, are not applicable to the Bank. Certain other assets, liabilities and results of operations, primarily relating to Credit Suisse Services AG (our Swiss service company) and its subsidiary, are managed as part of the activities of the Group’s segments. However, they are legally owned by the Group and are not part of the Bank’s consolidated financial statements.
Comparison of consolidated statements of operations
   Bank Group
in 1Q20 1Q19 1Q20 1Q19
Statements of operations (CHF million)   
Net revenues 5,785 5,435 5,776 5,387
Total operating expenses 4,124 4,363 4,007 4,244
Income before taxes 1,093 991 1,201 1,062
Net income 1,219 629 1,311 749
Net income attributable to shareholders 1,213 626 1,314 749
Comparison of consolidated balance sheets
   Bank Group
end of 1Q20 4Q19 1Q20 4Q19
Balance sheet statistics (CHF million)   
Total assets 835,796 790,459 832,166 787,295
Total liabilities 783,838 743,696 783,393 743,581
Capitalization and indebtedness
   Bank Group
end of 1Q20 4Q19 1Q20 4Q19
Capitalization and indebtedness (CHF million)   
Due to banks 25,393 16,742 25,394 16,744
Customer deposits 391,103 384,950 389,905 383,783
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions 45,545 27,641 45,451 27,533
Long-term debt 144,104 151,000 144,923 152,005
Other liabilities 177,693 163,363 177,720 163,516
Total liabilities  783,838 743,696 783,393 743,581
Total equity 51,958 46,763 48,773 43,714
Total capitalization and indebtedness  835,796 790,459 832,166 787,295
3

BIS capital metrics
   Bank Group
end of 1Q20 4Q19 1Q20 4Q19
Capital and risk-weighted assets (CHF million)   
CET1 capital 41,562 41,933 36,332 36,774
Tier 1 capital 55,089 54,024 50,825 49,791
Total eligible capital 58,026 56,958 53,762 52,725
Risk-weighted assets 302,299 290,843 300,580 290,463
Capital ratios (%)   
CET1 ratio 13.7 14.4 12.1 12.7
Tier 1 ratio 18.2 18.6 16.9 17.1
Total capital ratio 19.2 19.6 17.9 18.2
4Q19 amounts are shown on a look-through basis.
Selected financial data – Bank
Condensed consolidated statements of operations
in 1Q20 1Q19 % change
Condensed consolidated statements of operations (CHF million)   
Interest and dividend income 4,282 4,821 (11)
Interest expense (2,746) (3,273) (16)
Net interest income 1,536 1,548 (1)
Commissions and fees 2,920 2,579 13
Trading revenues 878 856 3
Other revenues 451 452 0
Net revenues  5,785 5,435 6
Provision for credit losses  568 81
Compensation and benefits 2,057 2,304 (11)
General and administrative expenses 1,722 1,745 (1)
Commission expenses 345 314 10
Total other operating expenses 2,067 2,059 0
Total operating expenses  4,124 4,363 (5)
Income before taxes  1,093 991 10
Income tax expense/(benefit) (126) 362
Net income  1,219 629 94
Net income/(loss) attributable to noncontrolling interests 6 3 100
Net income attributable to shareholders  1,213 626 94
4

Selected financial data – Bank (continued)
Condensed consolidated balance sheets
end of 1Q20 4Q19 % change
Assets (CHF million)   
Cash and due from banks 118,389 101,044 17
Interest-bearing deposits with banks 844 673 25
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions 107,876 106,997 1
Securities received as collateral 28,655 40,219 (29)
Trading assets 150,878 153,895 (2)
Investment securities 1,163 1,004 16
Other investments 5,824 5,634 3
Net loans 310,370 304,025 2
Goodwill 3,903 3,960 (1)
Other intangible assets 279 291 (4)
Brokerage receivables 62,895 35,648 76
Other assets 44,720 37,069 21
Total assets  835,796 790,459 6
Liabilities and equity (CHF million)   
Due to banks 25,393 16,742 52
Customer deposits 391,103 384,950 2
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions 45,545 27,641 65
Obligation to return securities received as collateral 28,655 40,219 (29)
Trading liabilities 44,882 38,186 18
Short-term borrowings 28,411 28,869 (2)
Long-term debt 144,104 151,000 (5)
Brokerage payables 44,173 25,683 72
Other liabilities 31,572 30,406 4
Total liabilities  783,838 743,696 5
Total shareholder's equity  51,282 46,120 11
Noncontrolling interests 676 643 5
Total equity  51,958 46,763 11
Total liabilities and equity  835,796 790,459 6
BIS statistics (Basel III)
end of 1Q20 4Q19 % change
Eligible capital (CHF million)   
Common equity tier 1 (CET1) capital 41,562 41,933 (1)
Tier 1 capital 55,089 54,024 2
Total eligible capital 58,026 56,958 2
Capital ratios (%)   
CET1 ratio 13.7 14.4
Tier 1 ratio 18.2 18.6
Total capital ratio 19.2 19.6
4Q19 amounts are shown on a look-through basis.
5

Exhibits
No. Description
99.1 Credit Suisse Earnings Release 1Q20
6

Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.
CREDIT SUISSE GROUP AG and CREDIT SUISSE AG
(Registrants)
Date: April 23, 2020
By:
/s/ Thomas Gottstein                                 /s/ David R. Mathers
      Thomas Gottstein                                       David R. Mathers
      Chief Executive Officer                               Chief Financial Officer 
7

99.1 Credit Suisse Earnings Release 1Q20






Key metrics
   in / end of % change
1Q20 4Q19 1Q19 QoQ YoY
Credit Suisse (CHF million)   
Net revenues 5,776 6,190 5,387 (7) 7
Provision for credit losses 568 146 81 289
Total operating expenses 4,007 4,830 4,244 (17) (6)
Income before taxes 1,201 1,214 1,062 (1) 13
Net income attributable to shareholders 1,314 852 749 54 75
Cost/income ratio (%) 69.4 78.0 78.8
Effective tax rate (%) (9.2) 29.7 29.5
Basic earnings per share (CHF) 0.53 0.34 0.29 56 83
Diluted earnings per share (CHF) 0.52 0.33 0.29 58 79
Return on equity (%) 11.7 7.6 6.9
Return on tangible equity (%) 13.1 8.6 7.8
Assets under management and net new assets (CHF billion)   
Assets under management 1,370.5 1,507.2 1,427.0 (9.1) (4.0)
Net new assets 5.8 9.9 34.6 (41.4) (83.2)
Balance sheet statistics (CHF million)   
Total assets 832,166 787,295 793,636 6 5
Net loans 302,674 296,779 292,970 2 3
Total shareholders' equity 48,675 43,644 43,825 12 11
Tangible shareholders' equity 43,792 38,690 38,794 13 13
Basel III regulatory capital and leverage statistics (%)   
CET1 ratio 12.1 12.7 12.6
CET1 leverage ratio 4.2 4.0 4.1
Tier 1 leverage ratio 5.8 5.5 5.2
Share information   
Shares outstanding (million) 2,399.0 2,436.2 2,507.8 (2) (4)
   of which common shares issued  2,556.0 2,556.0 2,556.0 0 0
   of which treasury shares  (157.0) (119.8) (48.2) 31 226
Book value per share (CHF) 20.29 17.91 17.48 13 16
Tangible book value per share (CHF) 18.25 15.88 15.47 15 18
Market capitalization (CHF million) 19,582 32,451 29,415 (40) (33)
Number of employees (full-time equivalents)   
Number of employees 48,500 47,860 46,200 1 5
See relevant tables for additional information on these metrics.
2

Credit Suisse
In 1Q20, we recorded net income attributable to shareholders of CHF 1,314 million. Return on equity and return on tangible equity were 11.7% and 13.1%, respectively. As of the end of 1Q20, our CET1 ratio was 12.1%.
Results
   in / end of % change
1Q20 4Q19 1Q19 QoQ YoY
Statements of operations (CHF million)   
Net interest income 1,534 1,702 1,532 (10) 0
Commissions and fees 2,927 2,865 2,612 2 12
Trading revenues 1 927 568 840 63 10
Other revenues 388 1,055 403 (63) (4)
Net revenues  5,776 6,190 5,387 (7) 7
Provision for credit losses  568 146 81 289
Compensation and benefits 2,316 2,590 2,518 (11) (8)
General and administrative expenses 1,346 1,916 1,413 (30) (5)
Commission expenses 345 324 313 6 10
Total other operating expenses 1,691 2,240 1,726 (25) (2)
Total operating expenses  4,007 4,830 4,244 (17) (6)
Income before taxes  1,201 1,214 1,062 (1) 13
Income tax expense/(benefit) (110) 361 313
Net income  1,311 853 749 54 75
Net income/(loss) attributable to noncontrolling interests (3) 1 0
Net income attributable to shareholders  1,314 852 749 54 75
Statement of operations metrics (%)   
Return on regulatory capital 10.8 10.6 9.5
Cost/income ratio 69.4 78.0 78.8
Effective tax rate (9.2) 29.7 29.5
Earnings per share (CHF)   
Basic earnings per share 0.53 0.34 0.29 56 83
Diluted earnings per share 0.52 0.33 0.29 58 79
Return on equity (%, annualized)   
Return on equity 11.7 7.6 6.9
Return on tangible equity 2 13.1 8.6 7.8
Book value per share (CHF)   
Book value per share 20.29 17.91 17.48 13 16
Tangible book value per share 2 18.25 15.88 15.47 15 18
Balance sheet statistics (CHF million)   
Total assets 832,166 787,295 793,636 6 5
Risk-weighted assets 300,580 290,463 290,098 3 4
Leverage exposure 869,706 909,994 901,814 (4) (4)
Number of employees (full-time equivalents)   
Number of employees 48,500 47,860 46,200 1 5
1
Represent revenues on a product basis which are not representative of business results within our business segments as segment results utilize financial instruments across various
product types.
2
Based on tangible shareholders' equity, a non-GAAP financial measure, which is calculated by deducting goodwill and other intangible assets from total shareholders' equity as presented in our balance sheet. Management believes that these metrics are meaningful as they are measures used and relied upon by industry analysts and investors to assess valuations and capital adequacy.
3

Results summary
1Q20 results
In 1Q20, Credit Suisse reported net income attributable to shareholders of CHF 1,314 million compared to CHF 749 million in 1Q19 and CHF 852 million in 4Q19. In 1Q20, Credit Suisse reported income before taxes of CHF 1,201 million, compared to CHF 1,062 million in 1Q19 and CHF 1,214 million in 4Q19. 1Q20 included a gain of CHF 268 million related to the completed transfer of the Credit Suisse InvestLab AG (InvestLab) fund platform (as described below).
The COVID-19 outbreak had an impact on our results in 1Q20, and we are closely monitoring the spread of the pandemic and the effects on our operations and business.
Results details
Net revenues
In 1Q20, we reported net revenues of CHF 5,776 million, which increased 7% compared to 1Q19, primarily reflecting higher net revenues in Asia Pacific, Swiss Universal Bank and Global Markets, partially offset by lower net revenues in Investment Banking & Capital Markets. The increase in Asia Pacific was mainly driven by significantly higher revenues in its Markets businesses across all major revenue categories and higher Private Banking revenues, partially offset by significantly lower revenues in its advisory, underwriting and financing business mainly due to unrealized mark-to-market losses on its fair-valued lending portfolio. The increase in Swiss Universal Bank was driven by higher transaction-based revenues, slightly higher net interest income and higher recurring commissions and fees. The increase in Global Markets was primarily driven by increased fixed income and equity sales and trading activity due to high levels of volatility, widened credit spreads, record low interest rates and significant equity market price moves as the COVID-19 outbreak spread. The decrease in Investment Banking & Capital Markets was driven by unrealized mark-to-market losses in its leveraged finance underwriting portfolio and net losses on hedges for its uncollateralized corporate derivatives exposure. Revenues in International Wealth Management included a gain of CHF 218 million related to the completed transfer of the InvestLab fund platform.
1Q20 included negative net revenues of CHF 73 million in the Corporate Center, which beginning in 1Q19 included the impact of the Asset Resolution Unit.
Compared to 4Q19, net revenues decreased 7%, primarily reflecting lower net revenues in Swiss Universal Bank, Investment Banking & Capital Markets and International Wealth Management, partially offset by higher net revenues in Global Markets. The decrease in Swiss Universal Bank mainly reflected lower other revenues, partially offset by higher transaction-based revenues. The decrease in Investment Banking & Capital Markets was driven by lower revenues from debt underwriting, advisory and other fees and equity underwriting. The decrease in International Wealth Management was driven by lower other revenues, lower recurring commissions and fees and lower net interest income, partially offset by higher transaction- and performance-based revenues. The increase in Global Markets was driven by significantly higher fixed income and equity sales and trading revenues due to higher volatility as well as a seasonal increase in client activity, partially offset by the increased losses in other revenues.
Provision for credit losses
In 1Q20, provision for credit losses was CHF 568 million, primarily driven by negative developments in our corporate lending portfolio, including increased drawdowns on loan commitments and the impact from the expected deterioration of macro-economic factors across multiple industries under the new current expected credit loss (CECL) methodology. We recorded provisions for credit losses of CHF 155 million in Investment Banking & Capital Markets, CHF 150 million in Global Markets, CHF 124 million in Swiss Universal Bank, CHF 97 million in Asia Pacific and CHF 39 million in International Wealth Management.
4

Overview of Results 

in / end of

Swiss
Universal
Bank

International
Wealth
Management



Asia Pacific


Global
Markets
Investment
Banking &
Capital
Markets


Corporate
Center


Credit
Suisse
1Q20 (CHF million)   
Net revenues  1,509 1,502 1,025 1,630 183 (73) 5,776
Provision for credit losses  124 39 97 150 155 3 568
Compensation and benefits 495 590 398 600 292 (59) 2,316
Total other operating expenses 301 336 278 550 114 112 1,691
   of which general and administrative expenses  245 277 210 416 110 88 1,346
Total operating expenses  796 926 676 1,150 406 53 4,007
Income/(loss) before taxes  589 537 252 330 (378) (129) 1,201
Return on regulatory capital (%) 17.7 33.9 17.9 9.6 (43.4) 10.8
Cost/income ratio (%) 52.8 61.7 66.0 70.6 221.9 69.4
Total assets 237,733 93,262 102,109 241,242 24,466 133,354 832,166
Goodwill 602 1,462 1,459 455 626 0 4,604
Risk-weighted assets 80,293 44,949 38,450 69,104 25,333 42,451 300,580
Leverage exposure 269,324 101,466 110,218 293,239 43,423 52,036 869,706
4Q19 (CHF million)   
Net revenues  1,748 1,640 937 1,312 431 122 6,190
Provision for credit losses  43 16 11 31 39 6 146
Compensation and benefits 482 608 410 621 302 167 2,590
Total other operating expenses 337 384 281 612 150 476 2,240
   of which general and administrative expenses  283 324 219 488 145 457 1,916
Total operating expenses  819 992 691 1,233 452 643 4,830
Income/(loss) before taxes  886 632 235 48 (60) (527) 1,214
Return on regulatory capital (%) 26.8 40.1 16.2 1.4 (6.6) 10.6
Cost/income ratio (%) 46.9 60.5 73.7 94.0 104.9 78.0
Total assets 232,729 93,059 107,660 214,019 17,819 122,009 787,295
Goodwill 607 1,494 1,476 457 629 0 4,663
Risk-weighted assets 78,342 43,788 36,628 56,777 23,559 51,369 290,463
Leverage exposure 264,987 100,664 115,442 257,407 42,590 128,904 909,994
1Q19 (CHF million)   
Net revenues  1,379 1,417 854 1,472 356 (91) 5,387
Provision for credit losses  29 10 17 11 8 6 81
Compensation and benefits 475 578 388 636 311 130 2,518
Total other operating expenses 325 306 266 543 130 156 1,726
   of which general and administrative expenses  270 252 209 415 127 140 1,413
Total operating expenses  800 884 654 1,179 441 286 4,244
Income/(loss) before taxes  550 523 183 282 (93) (383) 1,062
Return on regulatory capital (%) 17.1 35.4 13.5 8.9 (10.6) 9.5
Cost/income ratio (%) 58.0 62.4 76.6 80.1 123.9 78.8
Total assets 228,664 93,968 105,868 227,482 17,494 120,160 793,636
Goodwill 619 1,560 1,518 467 643 0 4,807
Risk-weighted assets 76,757 42,571 37,826 58,131 24,760 50,053 290,098
Leverage exposure 259,380 100,552 110,684 259,420 42,161 129,617 901,814
5

Total operating expenses
Compared to 1Q19, total operating expenses of CHF 4,007 million decreased 6%, primarily reflecting an 8% decrease in compensation and benefits, mainly relating to lower salaries and variable compensation, and a 5% decrease in general and administrative expenses, mainly driven by lower expenses related to real estate disposals and lower professional services fees.
Compared to 4Q19, total operating expenses decreased 17%, primarily reflecting a 30% decrease in general and administrative expenses, mainly due to lower litigation provisions, professional services fees and expenses related to real estate disposals, and an 11% decrease in compensation and benefits, mainly relating to lower salaries and variable compensation. Litigation provisions in 4Q19 were mainly in connection with mortgage-related matters recorded in the Corporate Center.
Income tax
In 1Q20, the income tax benefit of CHF 110 million mainly reflected the impact of the re-assessment of the US base erosion and anti-abuse tax (BEAT) provision for 2019 of CHF 180 million, the impact of previously unrecognized tax benefits of CHF 157 million relating to the resolution of interest cost deductibility with and between international tax authorities. Additionally, a change in US tax rules relating to federal net operating losses (NOLs), where federal NOLs generated in tax years 2018, 2019 or 2020 can be carried back for five years instead of no carry back before, and, also the deductible interest expense limitations for the years 2019 and 2020 have been increased from 30% to 50%. These two rule changes resulted in a benefit of CHF 141 million. The impact of these one-time benefits offset the negative impact of the geographical mix of results, non-deductible funding costs and other tax adjustments of a recurring nature. The Credit Suisse effective tax rate was (9.2)% in 1Q20 compared to 29.7% in 4Q19. Overall, net deferred tax assets decreased CHF 696 million to CHF 3,180 million during 1Q20, primarily driven by the tax impact related to the fair value movement, i.e., a credit spread widening on our fair valued option elected own debt instruments.
The US tax reform enacted in December 2017 introduced the BEAT tax regime, effective as of January 1, 2018, for which final regulations were issued by the US Department of Treasury on December 2, 2019. Following the publication of the 2019 financial results, Credit Suisse continued its analysis of the final regulations, resulting in a revision to the technical application of the prior BEAT estimate. This new information was not available or reasonably knowable at the time of the publication of the 2019 financial statements and resulted in a change of accounting estimate reflected in 1Q20.
Regulatory capital
As of the end of 1Q20, our Bank for International Settlements (BIS) common equity tier 1 (CET1) ratio was 12.1% and our risk-weighted assets (RWA) were CHF 300.6 billion.
> Refer to “Additional financial metrics” for further information on regulatory capital.
Other information
COVID-19 and related regulatory measures
The rapid spread of COVID-19 across the world in early 2020 led to the introduction of tight government controls and travel bans, as well as the implementation of other measures which quickly closed down activity and increased economic disruption globally. World markets were severely negatively impacted, with multiple industries, including energy, industrials, retail and leisure, significantly affected. The containment measures introduced to address the COVID-19 outbreak will almost certainly send the world economy into a recession in at least the first half of 2020. However, major central banks and governments around the world have responded by implementing unprecedented monetary and fiscal policy stimulus measures. The pandemic and the consequences for markets and the global economy, at least in the first half of 2020, is likely to affect the Group’s financial performance, including potentially significant impacts for credit loss estimates, as well as impacts on trading revenues, net interest income and potential goodwill assessments. We are closely monitoring the spread of COVID-19 and the effects on our operations and business.
At the Investor Day on December 11, 2019, we communicated our return on tangible equity (RoTE) ambition of approximately 10% for 2020, or approximately 11% in a constructive market environment, and highlighted additional cost measures to protect our RoTE should markets be more challenging. We also stated our aim to achieve an RoTE of above 12% in the medium term. The extent to which COVID-19 impacts our business, including with respect to our financial goals and related expectations and ambitions remains highly uncertain. While we continue to hope to achieve our goals in the medium term as the economy recovers from the impact of the measures taken in response to the COVID-19 pandemic, the impact on our RoTE goal for 2020 cannot be predicted at this time.
The Swiss government, the Swiss National Bank and the Swiss Financial Market Supervisory Authority FINMA (FINMA) have already taken various measures to mitigate the consequences for the economy and the financial system. Governments and regulators in other jurisdictions where we have operations have also taken a number of emergency and temporary measures to address the financial and economic pressures arising from the COVID-19 pandemic.
In March 2020, the Swiss Federal Council enacted an emergency ordinance on the granting of loans with joint and several guarantees provided by the Swiss Confederation. Thereunder, Swiss companies affected by the COVID-19 pandemic can apply to their banks for bridge credit facilities amounting to a maximum of 10% of their annual revenues and up to a maximum of CHF 20 million. Loans granted under this ordinance of up to CHF 500,000 are fully secured by the Swiss Confederation and no interest will be due on these loans. Loans that exceed CHF 500,000 will be secured by the Swiss Confederation up to 85% of the aggregate amount of the loan with the lending bank remaining subject to the credit risk on the remaining 15%. The interest rate on loans
6

exceeding CHF 500,000 is currently 0.5% on the portion of the loan secured by the Swiss Confederation. Swiss companies with revenues of more than CHF 500 million are not covered by this program. For loans granted to companies under this program the Swiss National Bank has implemented refinancing facilities. Credit Suisse has been significantly involved in this program from its inception.
In March 2020, FINMA announced the temporary exclusion of central bank reserves from leverage ratio calculations. This temporary measure took immediate effect and will continue to apply until July 1, 2020. The exclusion applies to deposits with all central banks globally, and thus not only to deposits held with the Swiss National Bank. For banks whose shareholders approved dividends or other similar distributions relating to 2019 after March 25, 2020, or who plan to seek such shareholder approval, the capital relief relating to the leverage ratio will be reduced. Accordingly, the capital relief applicable to Credit Suisse in 1Q20 is adjusted to account for the planned dividend payments in 2Q20 and 4Q20.
In March 2020, the Swiss Federal Council approved the proposal of the Swiss National Bank to deactivate the Swiss countercyclical capital buffer. The Swiss Federal Council to date has never activated the BIS countercyclical buffer, but instead required banks to hold CET1 capital equal to 2% of RWA pertaining to mortgage loans that finance residential property in Switzerland. This Swiss countercyclical capital buffer has served to strengthen banking sector resilience in the event of over-heating in the domestic mortgage and real estate markets. Given the current circumstances, in an effort to provide banks with greater flexibility to provide loans designed to address the economic impact of the COVID-19 pandemic, the Federal Council has decided to deactivate the Swiss countercyclical capital buffer requirement as of March 27, 2020 until further notice.
In March 2020, the Group of Central Bank Governors and Heads of Supervision announced changes to the implementation timeline of the outstanding Basel III standards. The implementation date of the Basel III standards finalized in December 2017 has been deferred by one year to January 2023. The accompanying transitional arrangements for the output floor have also been extended by one year to January 2028. The implementation date of the revised market risk framework finalized in January 2019 has been deferred by one year to January 2023. These measures have been taken to provide additional management capacity for banks and supervisors to respond to the COVID-19 outbreak.
As a result of the abrupt increase in market volatility due to the COVID-19 pandemic, financial institutions that apply the model approach to market risk are recording an increased number of backtesting exceptions. Such an exception occurs if the loss incurred on a single day is greater than the loss indicated by the model. Backtesting exceptions exceeding a certain number in a rolling 12-month period lead to an immediate increase of the minimum capital requirements for market risk. FINMA announced in April 2020 that it believed most recent exceptions experienced by regulated institutions were not due to shortcomings of the model, but due to the increase in volatility related to the COVID-19 pandemic. To mitigate this volatility-related pro-cyclicality, FINMA announced a temporary exemption, freezing the number of backtesting exceptions, and as a result the impact on minimum capital requirements due to the capital multiplier, at the level of February 1, 2020. This exemption is intended to remain in place at least up until July 1, 2020. Within one month of new exceptions occurring, banks must submit an analysis of their causes and FINMA reserves the right to demand new exceptions be considered in the bank-specific multiplier in exceptional cases.
Effective January 1, 2020, certain Basel III revisions to the capital requirements for credit risk became effective. The revisions relate to a new standardized approach for counterparty credit risk (SA-CCR) for derivatives, equity investments in funds and central counterparty default fund contributions. In response to the COVID-19 pandemic, FINMA has advised us that we may phase in CHF 12 billion of risk-weighted-assets inflation that arises from these new capital requirements equally throughout 2020 rather than immediately in 1Q20.
Share purchases
As announced at the 2019 Investor Day on December 11, 2019, the Board of Directors approved a share buyback program for 2020 of up to CHF 1.5 billion. Prior to the spread of COVID-19, we had expected to buy back at least CHF 1.0 billion of shares in 2020, subject to market and economic conditions. We commenced the 2020 share buyback program on January 6, 2020 and in 1Q20, repurchased 28.5 million shares for a total of CHF 325 million.
In light of the recent market volatility and the likely impact of COVID-19 on economic activity over the near term, the buyback program has been suspended, and we expect it will remain on hold until at least 3Q20 to allow us to reassess the situation when there is greater certainty over the market, financial and economic outlook.
Revised dividend proposal
On March 25, 2020, we published an invitation to our shareholders for the 2020 AGM that included a proposal from the Board of Directors of a cash dividend of CHF 0.2776 per share for the financial year 2019.
In light of the COVID-19 pandemic and in response to a request by FINMA, the Board of Directors announced on April 9, 2020 that the Board of Directors has made a revised dividend proposal to our shareholders at the 2020 AGM. Instead of a total dividend of CHF 0.2776 per share, the Board of Directors now proposes a cash distribution of CHF 0.1388 per share, with 50% of the distribution paid out of capital contribution reserves, free of Swiss withholding tax and not subject to income tax for Swiss resident individuals, and 50% paid out of retained earnings, net of 35% Swiss withholding tax. In the autumn of 2020, the Board of Directors intends to propose a second cash distribution of CHF 0.1388 per share, which would be presented for approval by our shareholders at an Extraordinary General Meeting at that time, subject to market and economic conditions.
7

While the Board of Directors remains of the opinion that our financial strength would have continued to support the original dividend proposal made to our shareholders, we believe that this response to FINMA’s request, in alignment with similar decisions made by our peers, is a prudent and responsible step to preserving capital in the face of the challenges posed by the COVID-19 pandemic and will allow for a fuller evaluation of the extent of the economic impact of this crisis later in the year. Subject to confirmation following this assessment and the subsequent approval by our shareholders, the resulting aggregate dividend in 2020 would be in line with our intention to increase the dividend by at least 5% per annum.
Credit Suisse InvestLab AG
Following the completion of the first step of the combination of our open architecture investment fund platform InvestLab and Allfunds Group in September 2019, we successfully completed the second and final step of the combination in March 2020 with the transfer of related distribution agreements to Allfunds Group. Upon completion of this final step, Credit Suisse has become an 18% shareholder in the combined business and will be represented on the board of directors.
Net revenues in 1Q20 included CHF 268 million from this second closing, reflected in the International Wealth Management, Swiss Universal Bank and Asia Pacific divisions.
Credit Suisse Founder Securities Limited
On April 17, 2020, we announced that we have received approval from the China Securities Regulatory Commission to increase our shareholding in our securities joint venture, Credit Suisse Founder Securities Limited, to 51% from the current 33.3% by way of a capital injection and related procedures.
Goodwill
In accordance with US GAAP, the Group continually assesses whether or not there has been a triggering event requiring a review of goodwill. The Group determined in 1Q20 that a goodwill triggering event occurred for the Investment Banking & Capital Markets reporting unit.
Based on its goodwill impairment analysis performed as of March 31, 2020, the Group concluded that there was no impairment necessary for the Investment Banking & Capital Markets reporting unit. The valuation considered three separate financial planning scenarios, representing different market recovery profiles. The reporting unit’s estimated fair value exceeded its carrying value by 5% in the scenarios deemed by the Group to be the most likely. The goodwill allocated to this reporting unit has become more sensitive to an impairment as the valuation is highly correlated with client trading and investing activity, and if the reporting unit’s operating environment does not return to a more normalized status in the near or foreseeable future there is a significant risk of a future impairment.
The Group determined that the market approach valuation method would not provide a reliable fair value estimate as a result of the significant market volatility due to the COVID-19 pandemic and, therefore, in estimating the 1Q20 fair value of the Investment Banking & Capital Markets reporting unit, the Group only applied the income approach, although implied market multiples based on the income approach were analyzed to support the valuation. Under the income approach, a discount rate was applied that reflects the risk and uncertainty related to the reporting unit’s projected cash flows, which were determined from the scenarios of the Group’s financial plan.
Accounting developments
The Group adopted Financial Accounting Standards Board Accounting Standards Update (ASU) 2016-13, “Measurement of Credit Losses on Financial Instruments” (ASU 2016-13) and its subsequent amendments on January 1, 2020, incorporating forward-looking information and macro-economic factors into its credit loss estimates. The modified retrospective approach was applied in adopting ASU 2016-13, which resulted in a decrease in retained earnings of less than CHF 0.2 billion, with no significant impact on regulatory capital.
8

Reconciliation of adjusted results
Adjusted results referred to in this document are non-GAAP financial measures that exclude certain items included in our reported results. Management believes that adjusted results provide a useful presentation of our operating results for purposes of assessing our Group and divisional performance consistently over time, on a basis that excludes items that management does not consider representative of our underlying performance. Provided below is a reconciliation of our adjusted results to the most directly comparable US GAAP measures. The Group completed its three-year restructuring plan outlined in 2015 at the end of 2018. Any subsequent expenses incurred such as severance payments or charges in relation to the termination of real estate contracts initiated after 2018 are recorded as ordinary compensation or other expenses in our reported results and are no longer excluded from adjusted results.

in

Swiss
Universal
Bank

International
Wealth
Management


Asia
Pacific


Global
Markets
Investment
Banking &
Capital
Markets


Corporate
Center


Credit
Suisse
1Q20 (CHF million)   
Net revenues  1,509 1,502 1,025 1,630 183 (73) 5,776
Provision for credit losses  124 39 97 150 155 3 568
Total operating expenses  796 926 676 1,150 406 53 4,007
   Major litigation provisions  (1) 0 0 0 0 (17) (18)
   Expenses related to real estate disposals  0 1 0 2 2 0 5
Total operating expenses adjusted  795 927 676 1,152 408 36 3,994
Income/(loss) before taxes  589 537 252 330 (378) (129) 1,201
   Total adjustments  1 (1) 0 (2) (2) 17 13
Adjusted income/(loss) before taxes  590 536 252 328 (380) (112) 1,214
Adjusted return on regulatory capital (%) 17.7 33.8 17.9 9.6 (43.7) 10.9
4Q19 (CHF million)   
Net revenues  1,748 1,640 937 1,312 431 122 6,190
   Real estate gains  (106) (32) 0 (7) 0 (1) (146)
   Losses on business sales  0 0 0 0 0 2 2
Net revenues adjusted  1,642 1,608 937 1,305 431 123 6,046
Provision for credit losses  43 16 11 31 39 6 146
Total operating expenses  819 992 691 1,233 452 643 4,830
   Major litigation provisions  0 3 0 0 0 (329) (326)
   Expenses related to real estate disposals  (2) (9) 0 (28) (18) 0 (57)
Total operating expenses adjusted  817 986 691 1,205 434 314 4,447
Income/(loss) before taxes  886 632 235 48 (60) (527) 1,214
   Total adjustments  (104) (26) 0 21 18 330 239
Adjusted income/(loss) before taxes  782 606 235 69 (42) (197) 1,453
Adjusted return on regulatory capital (%) 23.7 38.4 16.2 2.1 (4.6) 12.7
1Q19 (CHF million)   
Net revenues  1,379 1,417 854 1,472 356 (91) 5,387
   Real estate gains  (30) 0 0 0 0 0 (30)
Net revenues adjusted  1,349 1,417 854 1,472 356 (91) 5,357
Provision for credit losses  29 10 17 11 8 6 81
Total operating expenses  800 884 654 1,179 441 286 4,244
   Major litigation provisions  0 27 0 0 0 (33) (6)
   Expenses related to real estate disposals  (10) (10) 0 (8) (7) 0 (35)
Total operating expenses adjusted  790 901 654 1,171 434 253 4,203
Income/(loss) before taxes  550 523 183 282 (93) (383) 1,062
   Total adjustments  (20) (17) 0 8 7 33 11
Adjusted income/(loss) before taxes  530 506 183 290 (86) (350) 1,073
Adjusted return on regulatory capital (%) 16.5 34.3 13.5 9.2 (9.9) 9.6
9

Swiss Universal Bank
In 1Q20, we reported income before taxes of CHF 589 million and net revenues of CHF 1,509 million. Income before taxes increased 7% compared to 1Q19 and decreased 34% compared to 4Q19.
Results summary
1Q20 results
In 1Q20, income before taxes of CHF 589 million increased 7% compared to 1Q19. Net revenues of CHF 1,509 million increased 9%, driven by higher transaction-based revenues, slightly higher net interest income and higher recurring commissions and fees. 1Q20 included a gain related to the completed transfer of the InvestLab fund platform to Allfunds Group of CHF 25 million in Corporate & Institutional Clients and 1Q19 included gains on the sale of real estate of CHF 30 million in Private Clients, both reflected in other revenues. Provision for credit losses was CHF 124 million compared to CHF 29 million in 1Q19. Total operating expenses of CHF 796 million were stable, with lower general and administrative expenses offset by higher compensation and benefits.
Compared to 4Q19, income before taxes decreased 34%. Net revenues decreased 14%, mainly reflecting lower other revenues, partially offset by higher transaction-based revenues. 4Q19 included the SIX equity investment revaluation gain of CHF 306 million and gains on the sale of real estate of CHF 106 million, both reflected in other revenues. Provision for credit losses was CHF 124 million compared to CHF 43 million in 4Q19. Total operating expenses decreased slightly, driven by lower general and administrative expenses, partially offset by slightly higher compensation and benefits.
The spread of COVID-19 is expected to have negative effects on major economies globally and is likely to affect our business performance, including a potentially significant impact on credit losses, in at least the first half of 2020 and going forward. We have played an active role since inception in implementing the Swiss Federal Council’s emergency ordinance in response to the COVID-19 outbreak on the granting of loans to Swiss companies with applicable joint and several guarantees provided by the Swiss Confederation, and are processing the loan applications in a rapid and efficient manner.
> Refer to “Credit Suisse” for further information.
Capital and leverage metrics
As of the end of 1Q20, we reported RWA of CHF 80.3 billion, CHF 2.0 billion higher compared to the end of 4Q19, primarily driven by business growth. Leverage exposure of CHF 269.3 billion was CHF 4.3 billion higher compared to the end of 4Q19, mainly driven by business growth.
Divisional results
   in / end of % change
1Q20 4Q19 1Q19 QoQ YoY
Statements of operations (CHF million)   
Net revenues  1,509 1,748 1,379 (14) 9
Provision for credit losses  124 43 29 188 328
Compensation and benefits 495 482 475 3 4
General and administrative expenses 245 283 270 (13) (9)
Commission expenses 56 54 55 4 2
Total other operating expenses 301 337 325 (11) (7)
Total operating expenses  796 819 800 (3) (1)
Income before taxes  589 886 550 (34) 7
Statement of operations metrics (%)   
Return on regulatory capital 17.7 26.8 17.1
Cost/income ratio 52.8 46.9 58.0
Number of employees and relationship managers   
Number of employees (full-time equivalents) 13,090 12,350 11,980 6 9
Number of relationship managers 1,810 1,790 1,800 1 1
10

Divisional results (continued)
   in / end of % change
1Q20 4Q19 1Q19 QoQ YoY
Net revenue detail (CHF million)   
Private Clients 798 985 742 (19) 8
Corporate & Institutional Clients 711 763 637 (7) 12
Net revenues  1,509 1,748 1,379 (14) 9
Net revenue detail (CHF million)   
Net interest income 738 740 719 0 3
Recurring commissions and fees 374 385 359 (3) 4
Transaction-based revenues 385 227 288 70 34
Other revenues 12 396 13 (97) (8)
Net revenues  1,509 1,748 1,379 (14) 9
Balance sheet statistics (CHF million)   
Total assets 237,733 232,729 228,664 2 4
Net loans 174,160 170,772 169,531 2 3
   of which Private Clients  117,000 116,158 114,272 1 2
Risk-weighted assets 80,293 78,342 76,757 2 5
Leverage exposure 269,324 264,987 259,380 2 4
Net interest income includes a term spread credit on stable deposit funding and a term spread charge on loans. Recurring commissions and fees includes investment product management, discretionary mandate and other asset management-related fees, fees for general banking products and services and revenues from wealth structuring solutions. Transaction-based revenues arise primarily from brokerage fees, fees from foreign exchange client transactions, trading and sales income, equity participations income and other transaction-based income. Other revenues include fair value gains/(losses) on synthetic securitized loan portfolios and other gains and losses.
Reconciliation of adjusted results
   Private Clients Corporate & Institutional Clients Swiss Universal Bank
in 1Q20 4Q19 1Q19 1Q20 4Q19 1Q19 1Q20 4Q19 1Q19
Adjusted results (CHF million)   
Net revenues  798 985 742 711 763 637 1,509 1,748 1,379
   Real estate gains  0 (104) (30) 0 (2) 0 0 (106) (30)
Adjusted net revenues  798 881 712 711 761 637 1,509 1,642 1,349
Provision for credit losses  12 11 11 112 32 18 124 43 29
Total operating expenses  475 479 458 321 340 342 796 819 800
   Major litigation provisions  0 0 0 (1) 0 0 (1) 0 0
   Expenses related to real estate disposals  0 (1) (7) 0 (1) (3) 0 (2) (10)
Adjusted total operating expenses  475 478 451 320 339 339 795 817 790
Income before taxes  311 495 273 278 391 277 589 886 550
   Total adjustments  0 (103) (23) 1 (1) 3 1 (104) (20)
Adjusted income before taxes  311 392 250 279 390 280 590 782 530
Adjusted return on regulatory capital (%) 17.7 23.7 16.5
Adjusted results are non-GAAP financial measures. Refer to "Reconciliation of adjusted results" in Credit Suisse for further information.
11

Private Clients
Results details
In 1Q20, income before taxes of CHF 311 million increased 14% compared to 1Q19, driven by higher net revenues, partially offset by higher total operating expenses. Compared to 4Q19, income before taxes decreased 37%, reflecting lower net revenues.
Net revenues
Compared to 1Q19, net revenues of CHF 798 million increased 8%, mainly reflecting higher transaction-based revenues and higher net interest income. 1Q19 included gains on the sale of real estate of CHF 30 million reflected in other revenues. Transaction-based revenues of CHF 155 million increased 53%, driven by higher client activity and higher revenues from International Trading Solutions (ITS). Net interest income of CHF 441 million increased 7%, with higher treasury revenues and stable loan margins on slightly higher average loan volumes, partially offset by lower deposit margins on stable average deposit volumes. Recurring commissions and fees of CHF 204 million increased slightly, driven by higher investment product management fees and higher discretionary mandate management fees.
Compared to 4Q19, net revenues decreased 19%, mainly driven by lower other revenues, partially offset by higher transaction-based revenues. 4Q19 included the SIX equity investment revaluation gain of CHF 149 million and the gains on the sale of real estate of CHF 104 million, both reflected in other revenues. Recurring commissions and fees decreased 4%, driven by lower fees from lending activities and lower wealth structuring solution fees. Net interest income was stable. Transaction-based revenues increased 91%, mainly due to higher client activity and higher revenues from ITS.
Results - Private Clients
   in / end of % change
1Q20 4Q19 1Q19 QoQ YoY
Statements of operations (CHF million)   
Net revenues  798 985 742 (19) 8
Provision for credit losses  12 11 11 9 9
Compensation and benefits 290 275 266 5 9
General and administrative expenses 161 178 167 (10) (4)
Commission expenses 24 26 25 (8) (4)
Total other operating expenses 185 204 192 (9) (4)
Total operating expenses  475 479 458 (1) 4
Income before taxes  311 495 273 (37) 14
Statement of operations metrics (%)   
Cost/income ratio 59.5 48.6 61.7
Net revenue detail (CHF million)   
Net interest income 441 440 412 0 7
Recurring commissions and fees 204 212 199 (4) 3
Transaction-based revenues 155 81 101 91 53
Other revenues (2) 252 30
Net revenues  798 985 742 (19) 8
Margins on assets under management (annualized) (bp)   
Gross margin 1 151 182 143
Net margin 2 59 91 53
Number of relationship managers   
Number of relationship managers 1,320 1,280 1,280 3 3
1
Net revenues divided by average assets under management.
2
Income before taxes divided by average assets under management.
12

Provision for credit losses
The Private Clients loan portfolio is substantially comprised of residential mortgages in Switzerland and loans collateralized by securities and, to a lesser extent, consumer finance loans.
In 1Q20, Private Clients recorded provision for credit losses of CHF 12 million compared to provision for credit losses of CHF 11 million in 1Q19 and CHF 11 million in 4Q19. The provisions were primarily related to our consumer finance business.
Total operating expenses
Compared to 1Q19, total operating expenses of CHF 475 million increased 4%, mainly reflecting higher compensation and benefits, partially offset by lower general and administrative expenses. Compensation and benefits of CHF 290 million increased 9%, driven by higher pension expenses, higher social security expenses and higher salary expenses. General and administrative expenses of CHF 161 million decreased 4%, driven by lower allocated corporate function costs.
Compared to 4Q19, total operating expenses were stable, with lower general and administrative expenses offset by higher compensation and benefits. General and administrative expenses decreased 10%, mainly reflecting lower professional services fees and lower occupancy expenses. Compensation and benefits increased 5%, mainly reflecting higher allocated corporate function costs, higher pension expenses and increased social security expenses, partially offset by lower discretionary compensation expenses.
Margins
Our gross margin was 151 basis points in 1Q20, an increase of eight basis points compared to 1Q19, primarily reflecting higher transaction-based revenues and higher net interest income, partially offset by slightly higher average assets under management. Compared to 4Q19, our gross margin was 31 basis points lower, mainly reflecting lower other revenues, partially offset by higher transaction-based revenues and slightly lower average assets under management. 4Q19 included the SIX equity investment revaluation gain and the gains on the sale of real estate.
> Refer to “Assets under management” for further information.
Our net margin was 59 basis points in 1Q20, an increase of six basis points compared to 1Q19, primarily reflecting higher net revenues, partially offset by higher total operating expenses and slightly higher average assets under management. Compared to 4Q19, our net margin was 32 basis points lower, primarily reflecting lower net revenues, partially offset by slightly lower average assets under management. 4Q19 included the SIX equity investment revaluation gain and the gains on the sale of real estate.
Assets under management
As of the end of 1Q20, assets under management of CHF 194.8 billion were CHF 22.8 billion lower compared to the end of 4Q19, mainly due to unfavorable market movements and net asset outflows. Net asset outflows of CHF 4.2 billion were primarily driven by a single outflow in the ultra-high-net-worth client segment.
13

Assets under management – Private Clients
   in / end of % change
1Q20 4Q19 1Q19 QoQ YoY
Assets under management (CHF billion)   
Assets under management 194.8 217.6 210.7 (10.5) (7.5)
Average assets under management 210.7 216.8 207.2 (2.8) 1.7
Assets under management by currency (CHF billion)   
USD 34.1 36.0 33.1 (5.3) 3.0
EUR 17.1 20.2 21.0 (15.3) (18.6)
CHF 136.5 151.9 147.0 (10.1) (7.1)
Other 7.1 9.5 9.6 (25.3) (26.0)
Assets under management  194.8 217.6 210.7 (10.5) (7.5)
Growth in assets under management (CHF billion)   
Net new assets (4.2) (0.5) 3.3
Other effects (18.6) 3.9 9.4
   of which market movements  (17.2) 5.0 9.4
   of which foreign exchange  (1.2) (0.9) 0.4
   of which other  (0.2) (0.2) (0.4)
Growth in assets under management  (22.8) 3.4 12.7
Growth in assets under management (annualized) (%)   
Net new assets (7.7) (0.9) 6.7
Other effects (34.2) 7.2 19.0
Growth in assets under management (annualized)  (41.9) 6.3 25.7
Growth in assets under management (rolling four-quarter average) (%)   
Net new assets (1.9) 1.7 1.7
Other effects (5.6) 8.2 0.2
Growth in assets under management (rolling four-quarter average)  (7.5) 9.9 1.9
Corporate & Institutional Clients
Results details
In 1Q20, income before taxes of CHF 278 million was stable compared to 1Q19, with higher net revenues and lower total operating expenses, offset by higher provision for credit losses. Compared to 4Q19, income before taxes decreased 29%, reflecting higher provision for credit losses and lower net revenues, partially offset by lower total operating expenses.
Net revenues
Compared to 1Q19, net revenues of CHF 711 million increased 12%, driven by higher transaction-based revenues, the gain related to the completed transfer of the InvestLab fund platform of CHF 25 million reflected in other revenues and higher recurring commissions and fees, partially offset by slightly lower net interest income. Transaction-based revenues of CHF 230 million increased 23%, mainly driven by higher revenues from ITS, higher revenues from our Swiss investment banking business as well as higher brokerage and product issuing fees, partially offset by lower fees from foreign exchange client business. Recurring commissions and fees of CHF 170 million increased 6%, mainly due to higher wealth structuring solution fees, higher fees from lending activities and higher security account and custody services fees, partially offset by lower banking services fees. Net interest income of CHF 297 million decreased slightly, with stable loan margins on slightly lower average loan volumes and lower treasury revenues, partially offset by higher deposit margins on lower average deposit volumes.
14

Results – Corporate & Institutional Clients
   in / end of % change
1Q20 4Q19 1Q19 QoQ YoY
Statements of operations (CHF million)   
Net revenues  711 763 637 (7) 12
Provision for credit losses  112 32 18 250
Compensation and benefits 205 207 209 (1) (2)
General and administrative expenses 84 105 103 (20) (18)
Commission expenses 32 28 30 14 7
Total other operating expenses 116 133 133 (13) (13)
Total operating expenses  321 340 342 (6) (6)
Income before taxes  278 391 277 (29) 0
Statement of operations metrics (%)   
Cost/income ratio 45.1 44.6 53.7
Net revenue detail (CHF million)   
Net interest income 297 300 307 (1) (3)
Recurring commissions and fees 170 173 160 (2) 6
Transaction-based revenues 230 146 187 58 23
Other revenues 14 144 (17) (90)
Net revenues  711 763 637 (7) 12
Number of relationship managers   
Number of relationship managers 490 510 520 (4) (6)
Compared to 4Q19, net revenues decreased 7%, mainly reflecting lower other revenues, partially offset by higher transaction-based revenues. 4Q19 included the SIX equity investment revaluation gain of CHF 157 million reflected in other revenues. Recurring commissions and fees decreased slightly, driven by lower banking services fees and lower wealth structuring solution fees. Net interest income was stable, with lower loan margins on stable average loan volumes and lower treasury revenues, offset by higher deposit margins on lower average deposit volumes. Transaction-based revenues increased 58%, mainly due to higher revenues from ITS.
Provision for credit losses
The Corporate & Institutional Clients loan portfolio has relatively low concentrations and is mainly secured by real estate, securities and other financial collateral.
In 1Q20, Corporate & Institutional Clients recorded provision for credit losses of CHF 112 million compared to provision for credit losses of CHF 18 million in 1Q19 and CHF 32 million in 4Q19. Provision for credit losses in 1Q20 reflected the impact on our commodity trade finance and Swiss corporate portfolios from the expected deterioration of macro-economic factors under the new CECL methodology.
Total operating expenses
Compared to 1Q19, total operating expenses of CHF 321 million decreased 6%, driven by lower general and administrative expenses. General and administrative expenses of CHF 84 million decreased 18%, primarily reflecting lower allocated corporate function costs. Compensation and benefits of CHF 205 million decreased slightly, driven by lower social security expenses and lower discretionary compensation expenses, partially offset by higher pension expenses.
Compared to 4Q19, total operating expenses decreased 6%, driven by lower general and administrative expenses. General and administrative expenses decreased 20%, mainly reflecting lower allocated corporate function costs, lower occupancy expenses and lower professional services fees. Compensation and benefits were stable, with lower discretionary compensation expenses offset by higher allocated corporate function costs.
Assets under management
As of the end of 1Q20, assets under management of CHF 405.3 billion were CHF 31.1 billion lower compared to the end of 4Q19, mainly driven by unfavorable market movements, partially offset by net new assets. Net new assets of CHF 4.8 billion mainly reflected inflows from our pension business.
15

International Wealth Management
In 1Q20, we reported income before taxes of CHF 537 million and net revenues of CHF 1,502 million. Income before taxes increased slightly compared to 1Q19 and decreased 15% compared to 4Q19.
Results summary
1Q20 results
In 1Q20, income before taxes of CHF 537 million increased slightly compared to 1Q19. Net revenues of CHF 1,502 million were 6% higher, mainly driven by higher other revenues, partially offset by lower transaction- and performance-based revenues. Higher other revenues included a gain related to the completed transfer of the InvestLab fund platform of CHF 218 million reflected in Asset Management and Private Banking. This gain was partially offset by investment-related losses in 1Q20 compared to gains in 1Q19 in Asset Management. 1Q19 included a gain on a partial sale of an economic interest in a third-party manager relating to a private equity investment reflected in transaction- and performance-based revenues in Asset Management. Provision for credit losses was CHF 39 million compared to CHF 10 million 1Q19. Total operating expenses of CHF 926 million increased 5%, mainly driven by higher general and administrative expenses and slightly higher compensation and benefits.
Compared to 4Q19, income before taxes decreased 15%. Net revenues were 8% lower, driven by lower other revenues, lower recurring commissions and fees and lower net interest income, partially offset by higher transaction- and performance-based revenues. Other revenues in 1Q20 included the gain related to the completed transfer of the InvestLab fund platform, while 4Q19 included the SIX equity investment revaluation gain of CHF 192 million and a gain on the sale of real estate of CHF 32 million. In addition, there were investment-related losses in 1Q20 compared to gains in 4Q19 in Asset Management. Provision for credit losses was CHF 39 million compared to CHF 16 million in 4Q19. Total operating expenses decreased 7%, mainly reflecting lower general and administrative expenses and slightly lower compensation and benefits.
As previously stated, the outlook of our business is uncertain due to the spread of COVID-19. While there have been some short-term benefits from higher market volatility and client trading reflected in our 1Q20 results, the negative effects from distressed equity markets, lower interest rates, the foreign exchange environment and potentially significant credit losses are likely to impact our results for future quarters. Potentially lower assets under management, lower performance fees, a shift towards lower risk asset classes and lower transaction volumes would likely continue to impact results in our Asset Management business. Lower market valuations in 2Q20 would result in additional investment-related losses in Asset Management.
Capital and leverage metrics
As of the end of 1Q20, we reported RWA of CHF 44.9 billion, an increase of CHF 1.2 billion compared to the end of 4Q19, primarily driven by methodology and policy changes, reflecting the phase-in of certain Basel III revisions for credit risk, primarily related to SA-CCR, and movements in risk levels, partially offset by a foreign exchange impact. Leverage exposure of CHF 101.5 billion was stable compared to the end of 4Q19.
Divisional results
   in / end of % change
1Q20 4Q19 1Q19 QoQ YoY
Statements of operations (CHF million)   
Net revenues  1,502 1,640 1,417 (8) 6
Provision for credit losses  39 16 10 144 290
Compensation and benefits 590 608 578 (3) 2
General and administrative expenses 277 324 252 (15) 10
Commission expenses 59 60 54 (2) 9
Total other operating expenses 336 384 306 (13) 10
Total operating expenses  926 992 884 (7) 5
Income before taxes  537 632 523 (15) 3
Statement of operations metrics (%)   
Return on regulatory capital 33.9 40.1 35.4
Cost/income ratio 61.7 60.5 62.4
Number of employees (full-time equivalents)   
Number of employees 10,270 10,490 10,400 (2) (1)
16

Divisional results (continued)
   in / end of % change
1Q20 4Q19 1Q19 QoQ YoY
Net revenue detail (CHF million)   
Private Banking 1,061 1,194 1,019 (11) 4
Asset Management 441 446 398 (1) 11
Net revenues  1,502 1,640 1,417 (8) 6
Net revenue detail (CHF million)   
Net interest income 369 389 370 (5) 0
Recurring commissions and fees 545 584 539 (7) 1
Transaction- and performance-based revenues 464 424 510 9 (9)
Other revenues 124 243 (2) (49)
Net revenues  1,502 1,640 1,417 (8) 6
Balance sheet statistics (CHF million)   
Total assets 93,262 93,059 93,968 0 (1)
Net loans 50,412 53,794 53,185 (6) (5)
   of which Private Banking  50,390 53,771 53,174 (6) (5)
Risk-weighted assets 44,949 43,788 42,571 3 6
Leverage exposure 101,466 100,664 100,552 1 1
Reconciliation of adjusted results
   Private Banking Asset Management International Wealth Management
in 1Q20 4Q19 1Q19 1Q20 4Q19 1Q19 1Q20 4Q19 1Q19
Adjusted results (CHF million)   
Net revenues  1,061 1,194 1,019 441 446 398 1,502 1,640 1,417
   Real estate gains  0 (32) 0 0 0 0 0 (32) 0
Adjusted net revenues  1,061 1,162 1,019 441 446 398 1,502 1,608 1,417
Provision for credit losses  39 16 10 0 0 0 39 16 10
Total operating expenses  647 683 607 279 309 277 926 992 884
   Major litigation provisions  0 3 27 0 0 0 0 3 27
   Expenses related to real estate disposals  1 (7) (8) 0 (2) (2) 1 (9) (10)
Adjusted total operating expenses  648 679 626 279 307 275 927 986 901
Income before taxes  375 495 402 162 137 121 537 632 523
   Total adjustments  (1) (28) (19) 0 2 2 (1) (26) (17)
Adjusted income before taxes  374 467 383 162 139 123 536 606 506
Adjusted return on regulatory capital (%) 33.8 38.4 34.3
Adjusted results are non-GAAP financial measures. Refer to "Reconciliation of adjusted results" in Credit Suisse for further information.
17

Private Banking
Results details
In 1Q20, income before taxes of CHF 375 million decreased 7% compared to 1Q19, mainly reflecting higher total operating expenses and higher provision for credit losses, partially offset by higher net revenues. Compared to 4Q19, income before taxes decreased 24%, primarily driven by lower net revenues and higher provision for credit losses, partially offset by lower total operating expenses.
Net revenues
Compared to 1Q19, net revenues of CHF 1,061 million increased 4%, mainly driven by higher transaction- and performance-based revenues and higher other revenues including a gain related to the completed transfer of the InvestLab fund platform of CHF 15 million. Transaction- and performance-based revenues of CHF 387 million increased 9%, mainly reflecting higher revenues from ITS and higher client activity, partially offset by lower structured product issuances from a very high level in 1Q19. Net interest income of CHF 369 million and recurring commissions and fees of CHF 294 million were stable.
Compared to 4Q19, net revenues decreased 11%, mainly driven by lower other revenues, lower recurring commissions and fees and lower net interest income, partially offset by higher transaction- and performance-based revenues. 1Q20 included the gain related to the completed transfer of the InvestLab fund platform and 4Q19 included the SIX equity investment revaluation gain of CHF 192 million and the gain on the sale of real estate of CHF 32 million, all reflected in other revenues. Recurring commissions and fees decreased 9%, mainly reflecting lower fees from lending activities. Net interest income decreased 5%, mainly driven by stable loan margins on slightly lower average loan volumes and lower treasury revenues, partially offset by higher deposit margins on slightly higher average deposit volumes. Transaction- and performance-based revenues increased 52% mainly reflecting significantly higher revenues from ITS and higher client activity, partially offset by lower performance fees.
Provision for credit losses
The Private Banking loan portfolio primarily comprises lombard loans, mainly backed by listed securities, ship finance and real estate mortgages.
In 1Q20, provision for credit losses was CHF 39 million, compared to CHF 10 million in 1Q19 and CHF 16 million in 4Q19. Provision for credit losses in 1Q20 included the impact from the expected deterioration of macro-economic factors across multiple industries under the new CECL methodology.
Total operating expenses
Compared to 1Q19, total operating expenses of CHF 647 million increased 7%, mainly reflecting higher general and administrative expenses and slightly higher compensation and benefits. General and administrative expenses of CHF 184 million increased 17%, mainly driven by higher litigation provisions, partially offset by lower allocated corporate function costs. 1Q19 included a release of litigation provisions. Compensation and benefits of CHF 425 million increased slightly, mainly driven by higher social security and pension expenses and higher allocated corporate function costs, partially offset by lower discretionary compensation expenses.
18

Results – Private Banking
   in / end of % change
1Q20 4Q19 1Q19 QoQ YoY
Statements of operations (CHF million)   
Net revenues  1,061 1,194 1,019 (11) 4
Provision for credit losses  39 16 10 144 290
Compensation and benefits 425 429 413 (1) 3
General and administrative expenses 184 216 157 (15) 17
Commission expenses 38 38 37 0 3
Total other operating expenses 222 254 194 (13) 14
Total operating expenses  647 683 607 (5) 7
Income before taxes  375 495 402 (24) (7)
Statement of operations metrics (%)   
Cost/income ratio 61.0 57.2 59.6
Net revenue detail (CHF million)