UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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Form 6-K

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REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

December 04, 2008

 

Commission File Number 001-15244

CREDIT SUISSE GROUP AG

(Translation of registrant’s name into English)

Paradeplatz 8, P.O. Box 1, CH-8070 Zurich, Switzerland

(Address of principal executive office)

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Commission File Number 001-33434

CREDIT SUISSE

(Translation of registrant’s name into English)

Paradeplatz 8, P.O. Box 1, CH-8070 Zurich, Switzerland

(Address of principal executive office)

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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or 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 the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

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

This report is being filed by Credit Suisse Group AG and Credit Suisse to be incorporated by reference in Post-Effective Amendment No. 1 to their Registration Statement on Form F-3 (file no. 333-132936).

 

 

 

Media Release

 

Credit Suisse accelerates implementation of strategic plan; substantial reduction of risk and cost base; update on fourth-quarter performance

 

Zurich, December 4, 2008 Credit Suisse today announced a number of strategic measures to reflect the continuing evolution of the financial markets over the past year.

 

 

 

 

 

 

 

 

Update on 4Q08 performance

 

 

 

 

Update on executive compensation

 

 

Commenting on the steps outlined today, Brady W. Dougan, CEO of Credit Suisse Group, said: “Our strategy remains clear and consistent: we will continue to judiciously invest in the growth of Private Banking globally and our Swiss businesses, reduce volatility and risk, and increase our focus on client and flow trading businesses in Investment Banking. The strategic steps we are outlining today will further reinforce the strong position of Credit Suisse from a risk, cost, capital and earnings perspective. These actions will better position us to weather the continuing challenging market conditions, capture opportunities that arise amid the continuing disruption, and prosper when markets improve. Our approach is firmly rooted in the integrated model, which we believe is the most effective means of delivering best-in-class service to our clients, while realizing enhanced operating efficiencies.”

 

Key measures to be accelerated

Credit Suisse will continue to judiciously invest in the growth of its Private Banking business globally and its Swiss businesses. In Private Banking, Credit Suisse has made good progress with its international growth strategy and has strengthened its team of professionals this year by hiring 370 relationship managers in Wealth Management, net, as of the end-November 2008, thereby exceeding its target of 330 for 2008. The measures announced today are also designed to further improve the efficiency of the Private Banking business and to position it for further growth in 2009.

 

In Investment Banking, Credit Suisse is accelerating the implementation of its strategy to reposition the business in light of the changed competitive and market environment. The strategic measures reflect, among other factors, the impact of weaker macroeconomic conditions, continued market volatility and fundamental shifts in client demand away from more complex products towards the greater use of exchange-based and flow trading. This shift towards more liquid products will build upon the momentum that Credit Suisse has already achieved in areas such as algorithmic trading, cash equities, prime services, rates, foreign exchange, high grade credit and strategic advisory businesses. The Investment Banking division will also continue to reduce its origination capacity in complex credit and structured product businesses and cut risk capital usage, including exiting certain proprietary and principal trading operations. The new operating model will reduce earnings volatility, improve capital efficiency and better leverage the strengths of the integrated bank. Risk-weighted assets, measured on a consistent methodology basis, declined from USD 236 billion as of end-2007 to USD 193 billion as of the third quarter of 2008, and are expected to decline to USD 170 billion by end-2008 and to USD 135 billion by end-2009, a 43% reduction since end-2007. Furthermore, as announced in October, Credit Suisse has

already reduced its trading risk positions substantially and underlying one-day VaR as of end-November 2008 declined 34% from the third quarter of 2008 and 60% from the fourth quarter of 2007.

 

The cost efficiency initiatives will be implemented across all divisions throughout the bank and will result in a headcount reduction of 5,300, an 11% reduction of the bank’s workforce. These reductions, the vast majority of which will have taken place by the end of the first half of 2009, will be primarily in Investment Banking and in related support areas. Together with additional reductions in compensation and non-compensation costs, these measures will reduce costs by CHF 2 billion, representing 9% of the bank’s reported nine-month annualized 2008 cost base. Costs associated with the strategic measures will amount to approximately CHF 900 million and the majority will be taken in the fourth quarter. These costs are not reflected in the estimated quarter-to-date result as of end-November.

 

Update on Credit Suisse’s fourth-quarter 2008 performance

Based on preliminary information on its operating performance, Credit Suisse estimates that it had a net loss of approximately CHF 3 billion in the fourth quarter as of end-November. Investment Banking had a significant pre-tax loss, reflecting the challenging conditions in the financial markets in the quarter and costs associated with risk reduction. Credit Suisse had a modest net profit in November. The Private Banking division continues to perform well and attracted solid asset inflows in the fourth quarter as of end-November. Credit Suisse has maintained its strong capital base and expects to have a tier 1 ratio of around 13% at year-end. The bank’s deposit base and funding remain very solid.

 

These results are preliminary and are subject to a number of adjustments, contingencies and review processes.

 

Compensation for 2008

In light of Credit Suisse’s 2008 performance to date, the Chairman, Group CEO and CEO of the Investment Bank have informed the Board of Directors that it would not be appropriate for them to receive variable compensation for 2008.

 

Information

Media Relations Credit Suisse, telephone +41 844 33 88 44, media.relations@credit-suisse.com

Investor Relations Credit Suisse, telephone +41 44 333 71 49, investor.relations@credit-suisse.com

 

Credit Suisse

As one of the world’s leading banks, Credit Suisse provides its clients with private banking, investment banking and asset management services worldwide. Credit Suisse offers advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as retail clients in Switzerland. Credit Suisse is active in over 50 countries and employs approximately 50,000 people. Credit Suisse is comprised of a number of legal entities around the world and is headquartered in Zurich. The registered shares (CSGN) of Credit Suisse’s parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

 

Cautionary statement regarding forward-looking information

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. 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 the following:

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 securities 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:

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 information set forth in our Form 20-F Item 3 – Key Information – Risk Factors.

 

 

Audio webcast and telephone conference for analysts and the media

 

 

 

 

 

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.