Credit Suisse Group announces plan to evolve its legal entity structure

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Credit Suisse Group announces plan to evolve its legal entity structure

Credit Suisse today announces key components of its program to evolve the Group’s legal entity structure. The program addresses developing and future regulatory requirements. Subject to final analysis and approval by our key regulators, implementation of the major components is planned from mid-2015.

Zurich
21.11.2013

Media Relations Credit Suisse AG

T: +41 844 33 88 44
E: media.relations@credit-suisse.com

Investor Relations Credit Suisse AG

T: +41 44 333 71 49
E: investor.relations@credit-suisse.com

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Since 2012, Credit Suisse has been developing a program to evolve the Group’s legal entity structure to meet developing and future regulatory requirements. This has been prepared in discussion with FINMA and will address regulations in Switzerland (Banking Ordinance), the United States (the Federal Reserve’s Enhanced Prudential Standards for Foreign Banking Organizations) and the United Kingdom (Recovery and Resolution Planning).

Credit Suisse's legal entity structure currently consists of a global branch network, primarily used for its Private Banking business, and three main subsidiaries, primarily used for its Investment Banking business. In the future, Credit Suisse will more closely align the booking of its Investment Banking business to the region in which it originates from a client and risk management perspective.

These changes are designed to both meet future requirements for global recovery and resolution planning and result in a substantially less complex and more efficient operating infrastructure for the bank. Furthermore, Swiss banking law provides for the possibility of a limited reduction in capital requirements in the event of an improvement in resolvability which this program intends to deliver.

The key components are:

1) In Switzerland, Credit Suisse plans to create a subsidiary for its Swiss-booked business (primarily wealth management, retail and corporate and institutional clients as well as the product and sales hub in Switzerland).

2) Credit Suisse’s UK operations will remain the hub of its European investment banking business while Credit Suisse is planning that its two principal UK operating subsidiaries (Credit Suisse Securities (Europe) Ltd and Credit Suisse International) will be consolidated into one single subsidiary. The program will look to align non-European business to the appropriate entities in the Americas, primarily Credit Suisse Securities (USA) LLC, and in Asia Pacific, through the Singapore Branch of Credit Suisse AG.

3) In the United States, Credit Suisse's existing broker-dealer subsidiary, Credit Suisse Securities (USA) LLC is planned to remain a subsidiary of Credit Suisse USA Inc., a US holding company. Credit Suisse USA Inc., which will hold its US-based operating businesses, will be subject to the Federal Reserve’s final rules for Enhanced Supervision of Foreign Banking Organizations in the US. Additionally, subject to US regulatory approvals, the US derivatives businesses, currently booked in London in Credit Suisse International, are anticipated to be transferred to the US broker-dealer.

4) Credit Suisse intends to create a separately capitalized global infrastructure legal entity in Switzerland and a US subsidiary of Credit Suisse USA Inc. In principle, these will include all Shared Services functions.

5) Once the final legal framework is agreed, Credit Suisse plans to issue bail-in eligible debt out of the group holding company, Credit Suisse Group AG, to enable a single point of entry bail-in resolution strategy.

This program has been approved by the Board of Directors of Credit Suisse Group AG, but is subject to final approval by the Swiss Financial Market Supervisory Authority, FINMA. Implementation of the program is well underway, with a number of key components to be implemented from mid-2015.

Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services providers and is part of the Credit Suisse group of companies (referred to here as 'Credit Suisse'). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 46,400 people. 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 of 1995. 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:
– our plans, objectives or goals;
– our future economic performance or prospects;
– the potential effect on our future performance of certain contingencies; and
– assumptions underlying any such statements.
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:
– the ability to maintain sufficient liquidity and access capital markets;
– market and interest rate fluctuations and interest rate levels;
– the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations, in particular the risk of continued slow economic recovery or downturn in the US or other developed countries in 2013 and beyond;
– the direct and indirect impacts of continuing deterioration or slow recovery in residential and commercial real estate markets;
– adverse rating actions by credit rating agencies in respect of sovereign issuers, structured credit products or other credit-related exposures;
– the ability to achieve our strategic objectives, including improved performance, reduced risks, lower costs, and more efficient use of capital;
– the ability of counterparties to meet their obligations to us;
– the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations;
– political and social developments, including war, civil unrest or terrorist activity;
– the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations;
– operational factors such as systems failure, human error, or the failure to implement procedures properly;
– actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations;
– the effects of changes in laws, regulations or accounting policies or practices;
– competition in geographic and business areas in which we conduct our operations;
– the ability to retain and recruit qualified personnel;
– the ability to maintain our reputation and promote our brand;
– the ability to increase market share and control expenses;
– technological changes;
– the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users;
– acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets;
– the adverse resolution of litigation and other contingencies;
– the ability to achieve our cost efficiency goals and cost targets; and
– our success at managing the risks involved in the foregoing.

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, including the information set forth in “Risk Factors” in I – Information on the company in our Annual Report 2012.

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Credit Suisse Group announces plan to evolve its legal entity structure

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