Third quarter 2021 financial results and Group Strategy Review

Highlights for the third quarter 2021

Strong pre-tax income growth year on year, together with more conservative risk appetite, driven by solid revenue growth and a net release of CHF 144 mn in provision for credit losses, partly offset by additional costs, including in relation to longstanding litigation issues

• Net income attributable to shareholders of CHF 434 mn, down 21% year on year driven by an elevated effective tax rate
• Reported pre-tax income of CHF 1.0 bn, up 26% year on year, including a gain of CHF 235 mn relating to Archegos, mainly due to a release of provisions pertaining to an assessment of the future recoverability of receivables, and a CHF 129 mn gain related to our equity investment in Allfunds Group. These gains were offset by major litigation charges of CHF 564 mn¹, including CHF 214 mn in connection with settlements we announced last month relating to the Mozambique matter and litigation provisions in connection with certain other legacy matters, including mortgage-related matters, and in connection with the Supply Chain Finance Funds (SCFF) matter. We also recorded a further impairment relating to York Capital Management of CHF 113 mn in AM
• On an adjusted basis, excluding significant items and Archegos*, record² third quarter pre-tax income of CHF 1.4 bn, up 25% year on year
• On an adjusted basis, excluding significant items and Archegos*, net revenues were up 6% year on year driven by higher net revenues across IB, AM and SUB, partly offset by lower net revenues in IWM
• Reported operating expenses of CHF 4.6 bn, up 6% year on year, primarily due to higher major litigation provisions and professional services fees. Adjusted operating expenses, excluding significant items and Archegos*, up 2% year on year, with continued investments in strategic initiatives, partially offset by lower compensation and benefits
• Net release of provision for credit losses of CHF 144 mn relating primarily to a release of USD 202 mn (CHF 188 mn) pertaining to an assessment of the future recoverability of receivables related to Archegos in the IB
• Settlement with US, UK and Swiss regulators of legacy matters related to loan financing for Mozambique state enterprises and related securities transactions that took place between 2013 and 2016; concluded enforcement proceeding with Swiss regulator related to past observation activities
• Continued progress on remediation work on the SCFF matter. Returning cash to investors remains a priority; total cash paid out and current cash and cash equivalents of approximately USD 7.0 bn as of September 30, 2021

^{* Refers to results excluding certain items included in our reported results. These results are non-GAAP financial measures. For a reconciliation to the most directly comparable US GAAP measures, see the Appendix of this Media Release.
1 Consists of major litigation provisions of CHF 495 mn and a valuation adjustment related to major litigation of CHF 69 mn
2 Since 3Q16}

All documents relating to our Group Strategy Review will be available at: www.credit-suisse.com/investorday