Credit Suisse Group reports net income of CHF 1.2 billion in the second quarter of 2008
Zurich, July 24, 2008 - Credit Suisse Group reported net income of CHF 1,215 million in the second quarter of 2008, compared with net income of CHF 3,189 million in the second quarter of 2007. Core net revenues were CHF 7,830 million, up 159% from the first quarter of 2008 but down 33% from the second quarter of 2007. Diluted earnings per share in the second quarter of 2008 were CHF 1.12 compared with CHF 2.82 in the same period a year earlier.

All three divisions profitable; diluted earnings per share of CHF 1.12

Strong asset inflows in Private Banking: net new assets totaled CHF 17.4 billion

Solid operating performance in Investment Banking; net writedowns were immaterial at CHF 22 million

Continued significant reduction in risk exposures during 2Q08: risk exposures declined 31% in leveraged finance and 22% in commercial mortgages from the end of 1Q08, and 76% and 58% from the end of 3Q07, respectively

Strong BIS tier 1 ratio under Basel II of 10.2% as of June 30, 2008
Zurich, July 24, 2008
Credit Suisse Group reported net income of CHF 1,215 million in the second quarter of 2008, compared with net income of CHF 3,189 million in the second quarter of 2007. Core net revenues were CHF 7,830 million, up 159% from the first quarter of 2008 but down 33% from the second quarter of 2007. Diluted earnings per share in the second quarter of 2008 were CHF 1.12 compared with CHF 2.82 in the same period a year earlier.

Brady W. Dougan, Chief Executive Officer, said: "We are pleased with our second-quarter results, which reflect the resilience and earnings power of our integrated business model and our continued focus on risk and cost management. During the second quarter we saw strong momentum in our Wealth Management business and a solid operating performance in Investment Banking. We continued to reduce our risk positions, as we have done since the early stages of the credit crisis. At a time when the industry is undergoing fundamental change, our strength in the right mix of businesses provides us with excellent prospects to grow market share."

He added: "Our conservative funding structure and our position as one of the world's best capitalized banks remain competitive advantages. The quarter's strong net new assets in Private Banking and other client flows across our franchise underscore the trust that clients are placing in Credit Suisse. We anticipate that the current challenging market conditions will persist over the near to medium term and we will continue to manage our business conservatively."

Segment Results

Private Banking
Private Banking, which comprises the Wealth Management and Corporate & Retail Banking businesses, reported income before taxes of CHF 1,220 million in the second quarter of 2008, a decrease of 12% from the second quarter of 2007.

The Wealth Management business reported income before taxes of CHF 830 million in the second quarter of 2008, down 17% from the strong second quarter of 2007. Net revenues declined 4%, as an improvement in recurring revenues was more than offset by a decrease in transaction-based revenues. Total operating expenses rose 5%, primarily due to the ongoing strategic investment in expanding the global franchise. As part of that effort, Credit Suisse hired 120 relationship managers globally during the quarter, further strengthening its professional team. The pre-tax income margin was 36.4% in the second quarter of 2008 compared with 42.0% in the same period a year earlier.

The Corporate & Retail Banking business reported income before taxes of CHF 390 million in the second quarter of 2008, up 3% from the second quarter of 2007. Net revenues rose 2% from the same period a year earlier. Net releases of provision for credit losses were CHF 5 million compared with net releases of CHF 28 million in the second quarter of 2007, which benefited from the resolution of a single exposure. Total operating expenses were 2% lower than in the second quarter of 2007, as an increase in compensation and benefits was more than offset by lower general and administrative expenses and commission expenses. The pre-tax income margin was 39.5% in the second quarter of 2008 compared with 39.2% in the second quarter of 2007.

Investment Banking
Investment Banking returned to profitability in the second quarter of 2008, reporting income before taxes of CHF 281 million, compared with the record CHF 2,502 million in the second quarter of 2007. Net revenues declined 50% from the second quarter of 2007, but rose substantially from the previous quarter. Despite the challenging market conditions, many businesses reported solid results. The year-on-year decline in revenues was due in large part to an industry-wide decline in origination activity, particularly in the structured products and leveraged finance businesses, compared with exceptionally high levels in the second quarter of 2007. Net revenues in the second quarter of 2008 also reflected combined net writedowns of CHF 22 million in the leveraged finance and structured products businesses and a fair value loss of CHF 503 million on Credit Suisse debt due to narrower credit spreads.

Fixed income trading revenues were significantly lower in the second quarter of 2008 compared with the same period a year earlier, reflecting the above-mentioned net writedowns and lower levels of origination activity. Revenues from the global rates business also declined significantly. These declines were partly offset by increases in the residential mortgage-backed securities and European high grade businesses. Equity trading revenues decreased from the second quarter of 2007, primarily due to lower revenues in the equity proprietary trading and convertibles businesses than in the strong year-ago period. The decline was partially offset by a near-record performance in prime services and a strong performance in cash equities. Equity derivatives also posted solid results. Fixed income and equity trading were impacted by the fair value loss on Credit Suisse debt compared with significant gains in the first quarter of 2008. The underwriting and advisory businesses had lower revenues compared with the second quarter of 2007, in line with an industry-wide decline in market activity. Total operating expenses declined 32%, due primarily to a decrease in compensation and benefits, reflecting lower performance-related compensation on lower revenues.

Net valuation adjustments and exposures in Investment Banking
In the second quarter of 2008, combined net writedowns in the leveraged finance and structured products businesses were immaterial at CHF 22 million and exposures were significantly reduced compared with the previous quarters.

Asset Management
Asset Management returned to profitability in the second quarter of 2008, reporting income before taxes of CHF 167 million, compared with income before taxes of CHF 299 million in the second quarter of 2007. Income before taxes declined as a valuation gain of CHF 79 million on securities purchased from Credit Suisse's money market funds and semi-annual performance-based fees were more than offset by lower private equity and other investment-related gains and lower asset management and administrative revenues, reflecting a decline in average assets under management and higher funding costs. Compared with the second quarter of 2007, net revenues were down 13%, or 8% before the impact of the securities purchased from Credit Suisse's money market funds and private equity and other investment-related gains. Total operating expenses rose 3% from the second quarter of 2007, reflecting higher compensation and benefits and general and administrative expenses. In the second quarter of 2008, the pre-tax income margin was 22.6% compared with 35.1% in the second quarter of 2007, and was 13.3% before the impact of the securities purchased from Credit Suisse's money market funds. The fair value of Credit Suisse's balance sheet exposure from the purchased securities was CHF 1.5 billion at the end of the second quarter of 2008, down CHF 724 million from the first quarter of 2008.

Net New Assets
Private Banking recorded net new assets of CHF 17.4 billion in the second quarter of 2008, including net new assets of CHF 15.4 billion in the Wealth Management business, which represented a rolling four-quarter average growth rate of 5.9%. This result reflected good contributions from all regions, especially Europe, Middle East and Africa (EMEA) and Asia Pacific. Asset Management reported net new asset outflows of CHF 3.8 billion in the second quarter of 2008. The Group's total assets under management were CHF 1,411.9 billion as of June 30, 2008, down 13.3% from June 30, 2007, primarily reflecting adverse foreign exchange-related and market movements.

Benefits of the integrated bank
In the second quarter of 2008, Credit Suisse generated CHF 1.3 billion in revenues from cross-divisional activities, bringing the 2008 year-to-date total to CHF 2.5 billion.

Strong capitalization
Credit Suisse Group's capitalization remained strong, with a BIS tier 1 ratio of 10.2% under Basel II as of June 30, 2008. To achieve this, no dilutive equity capital was raised and the Group accrued a significant dividend during the quarter.

Enquiries:
Media Relations Credit Suisse, Tel. +41 844 33 88 44, media.relations@credit-suisse.com
Investor Relations Credit Suisse, Tel. +41 44 333 71 49, investor.relations@credit-suisse.com