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Credit Suisse Group AG, et al. – ‘6-K’ for 6/30/22

On:  Friday, 7/29/22, at 10:04am ET   ·   For:  6/30/22   ·   Accession #:  1370368-22-68   ·   File #s:  1-15244, 1-33434

Previous ‘6-K’:  ‘6-K’ on / for 7/27/22   ·   Next:  ‘6-K’ on / for 8/22/22   ·   Latest:  ‘6-K’ on / for 6/6/23   ·   5 References:   

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 7/29/22  Credit Suisse Group AG            6-K         6/30/22  175:82M                                    MDD Mgmt Digital … AG/FA
          Credit Suisse AG

Current, Quarterly or Annual Report by a Foreign Issuer   —   Form 6-K   —   SEA’34

Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 6-K         Current, Quarterly or Annual Report by a Foreign    HTML   3.52M 
                Issuer                                                           
 3: EX-23       23.1 Letter Regarding Unaudited Financial           HTML     42K 
                Information From the Independent Registered Public               
                Accounting Firm (Credit Suisse Ag)                               
 2: EX-23       23.2 Letter Regarding Unaudited Financial           HTML     42K 
                Information From the Independent Registered Public               
                Accounting Firm (Credit Suisse Group Ag)                         
 5: EX-99       99.1 Credit Suisse Financial Report 2Q22            HTML  10.70M 
 4: EX-99       99.2 Credit Suisse (Bank) Financial Statements      HTML   5.47M 
                6M22                                                             
11: R1          Document and Entity Information                     HTML     61K 
12: R2          Consolidated statements of operations               HTML    149K 
13: R3          Consolidated statements of comprehensive income     HTML     96K 
14: R4          Consolidated balance sheets                         HTML    188K 
15: R5          Consolidated balance sheets (Parenthetical)         HTML    276K 
16: R6          Consolidated statements of changes in equity        HTML    174K 
17: R7          Consolidated statements of cash flows               HTML    183K 
18: R8          Summary of significant accounting policies          HTML     54K 
19: R9          Recently issued accounting standards                HTML     61K 
20: R10         Business developments                               HTML     50K 
21: R11         Segment information                                 HTML    119K 
22: R12         Net interest income                                 HTML     93K 
23: R13         Commissions and fees                                HTML     78K 
24: R14         Trading revenues                                    HTML     72K 
25: R15         Other revenues                                      HTML     71K 
26: R16         Provision for credit losses                         HTML     63K 
27: R17         Compensation and benefits                           HTML     64K 
28: R18         General and administrative expenses                 HTML     79K 
29: R19         Restructuring expenses                              HTML    125K 
30: R20         Earnings per share                                  HTML     78K 
31: R21         Revenue from contracts with customers               HTML     92K 
32: R22         Trading assets and liabilities                      HTML     85K 
33: R23         Investment securities                               HTML    140K 
34: R24         Other investments                                   HTML     86K 
35: R25         Loans, allowance for loan losses and credit         HTML    117K 
                quality                                                          
36: R26         CECL - Financial instruments measured at amortized  HTML   1.41M 
                cost and credit losses                                           
37: R27         Goodwill                                            HTML    114K 
38: R28         Other assets and other liabilities                  HTML    138K 
39: R29         Long-term debt                                      HTML     79K 
40: R30         Accumulated other comprehensive income              HTML    220K 
41: R31         Offsetting of financial assets and financial        HTML    360K 
                liabilities                                                      
42: R32         Tax                                                 HTML    101K 
43: R33         Employee deferred compensation                      HTML    282K 
44: R34         Pension and other post-retirement benefits          HTML     84K 
45: R35         Derivatives and hedging activities                  HTML    648K 
46: R36         Guarantees and commitments                          HTML    173K 
47: R37         Transfers of financial assets and variable          HTML    677K 
                interest entities                                                
48: R38         Financial instruments                               HTML   2.16M 
49: R39         Assets pledged and collateral                       HTML     61K 
50: R40         Litigation                                          HTML     65K 
51: R41         Summary of significant accounting policies          HTML     55K 
                (Policies)                                                       
52: R42         Segment information (Tables)                        HTML    109K 
53: R43         Net interest income (Tables)                        HTML     93K 
54: R44         Commissions and fees (Tables)                       HTML     77K 
55: R45         Trading revenues (Tables)                           HTML     71K 
56: R46         Other revenues (Tables)                             HTML     70K 
57: R47         Provision for credit losses (Tables)                HTML     63K 
58: R48         Compensation and benefits (Tables)                  HTML     62K 
59: R49         General and administrative expenses (Tables)        HTML     79K 
60: R50         Restructuring expenses (Tables)                     HTML    127K 
61: R51         Earnings per share (Tables)                         HTML     77K 
62: R52         Revenue from contracts with customers (Tables)      HTML     84K 
63: R53         Trading assets and liabilities (Tables)             HTML     87K 
64: R54         Investment securities (Tables)                      HTML    143K 
65: R55         Other investments (Tables)                          HTML     85K 
66: R56         Loans, allowance for loan losses and credit         HTML    113K 
                quality (Tables)                                                 
67: R57         CECL - Financial instruments measured at amortized  HTML   1.36M 
                cost and credit losses (Tables)                                  
68: R58         Goodwill (Tables)                                   HTML    110K 
69: R59         Other assets and other liabilities (Tables)         HTML    137K 
70: R60         Long-term debt (Tables)                             HTML     84K 
71: R61         Accumulated other comprehensive income (Tables)     HTML    227K 
72: R62         Offsetting of financial assets and financial        HTML    354K 
                liabilities (Tables)                                             
73: R63         Tax (Tables)                                        HTML     87K 
74: R64         Employee deferred compensation (Tables)             HTML    277K 
75: R65         Pension and other post-retirement benefits          HTML     77K 
                (Tables)                                                         
76: R66         Derivatives and hedging activities (Tables)         HTML    646K 
77: R67         Guarantees and commitments (Tables)                 HTML    164K 
78: R68         Transfers of financial assets and variable          HTML    659K 
                interest entities (Tables)                                       
79: R69         Financial instruments (Tables)                      HTML   2.15M 
80: R70         Assets pledged and collateral (Tables)              HTML     62K 
81: R71         Business developments - Subsequent events (Details  HTML     49K 
                4)                                                               
82: R72         Business developments - Business developments       HTML     54K 
                (Details 5)                                                      
83: R73         Segment information - Income statement related      HTML     86K 
                (Details)                                                        
84: R74         Segment information - Balance sheet related         HTML     72K 
                (Details 2)                                                      
85: R75         Net interest income (Details)                       HTML     81K 
86: R76         Commissions and fees (Details)                      HTML     76K 
87: R77         Trading revenues (Details)                          HTML     71K 
88: R78         Other revenues (Details)                            HTML     63K 
89: R79         Provision for credit losses (Details)               HTML     59K 
90: R80         Compensation and benefits (Details)                 HTML     64K 
91: R81         General and administrative expenses (Details)       HTML     72K 
92: R82         Restructuring expenses (Details)                    HTML     68K 
93: R83         Restructuring provision - Rollforward (Details 2)   HTML     99K 
94: R84         Earnings per share (Details)                        HTML    112K 
95: R85         Revenue from contracts with customers (Details)     HTML     70K 
96: R86         Revenue from contracts with customers (Details 2)   HTML     55K 
97: R87         Trading assets and liabilities (Details)            HTML     67K 
98: R88         Trading assets and liabilities - Cash collateral -  HTML     56K 
                netted (Details 2)                                               
99: R89         Investment securities (Details)                     HTML     50K 
100: R90         Investment securities by type (Details 2)           HTML     68K  
101: R91         Investment securities - Unrealized losses/fair      HTML     74K  
                value (Details 3)                                                
102: R92         Investment securities - Proceeds/realized           HTML     50K  
                gains/losses (Details 4)                                         
103: R93         Investment securities - Maturities of amortized     HTML     81K  
                costs/FV/Avg yield (Details 6)                                   
104: R94         Investment securities - Allowance for credit loss   HTML     45K  
                (Details 7)                                                      
105: R95         Other investments (Details)                         HTML     90K  
106: R96         Other investments (Details 2)                       HTML     58K  
107: R97         Loans, allowance for loan losses and credit         HTML    151K  
                quality (Details)                                                
108: R98         CECL - Financial instruments measured at amortized  HTML     99K  
                cost and credit losses (Details)                                 
109: R99         CECL - Financial instruments measured at amortized  HTML     78K  
                cost and credit losses (Details 1)                               
110: R100        Cecl (Details 2)                                    HTML    122K  
111: R101        Cecl (Details 4)                                    HTML     86K  
112: R102        Cecl (Details 6)                                    HTML    115K  
113: R103        Cecl (Details 7)                                    HTML    263K  
114: R104        Cecl (Details 9)                                    HTML     48K  
115: R105        Cecl (Details 10)                                   HTML    442K  
116: R106        Cecl (Details 12)                                   HTML     92K  
117: R107        Cecl (Details 14)                                   HTML     85K  
118: R108        Cecl (Details 15)                                   HTML    113K  
119: R109        Cecl (Details 16)                                   HTML     47K  
120: R110        Goodwill (Details)                                  HTML    124K  
121: R111        Other assets and other liabilities (Details)        HTML    156K  
122: R112        Other assets and other liabilities (Details 2)      HTML     46K  
123: R113        Long-term debt (Details)                            HTML     63K  
124: R114        Long-term debt - Maturities (Details 2)             HTML     65K  
125: R115        Accumulated other comprehensive income (Details)    HTML    115K  
126: R116        AOCI - Additional share information (Details 2)     HTML     90K  
127: R117        AOCI - Significant reclassification adjustments     HTML     89K  
                (Details 3)                                                      
128: R118        Offsetting of financial assets (Details)            HTML    229K  
129: R119        Offsetting of financial liabilities (Details 2)     HTML    259K  
130: R120        Tax - Income statement related/reconciliation of    HTML    132K  
                tax rate (Details)                                               
131: R121        Tax - Balance sheet related (Details 2)             HTML     49K  
132: R122        Tax - Net deferred tax assets/liabilities by type   HTML     77K  
                (Details 3)                                                      
133: R123        Deferred compensation expense (Details)             HTML     74K  
134: R124        Estimated unrecognized deferred compensation        HTML     76K  
                (Details 2)                                                      
135: R125        Share-based awards (Details 3)                      HTML    124K  
136: R126        Cash-based awards (Details 5)                       HTML     67K  
137: R127        Other variable compensation (Details 6)             HTML    104K  
138: R128        Pension and other post-retirement benefits -        HTML    108K  
                Obligation and funded status (Details)                           
139: R129        Pension and other post-retirement benefits -        HTML     47K  
                Contributions (Details 7)                                        
140: R130        Pension and other post-retirement benefits          HTML     54K  
                (Details 11)                                                     
141: R131        Derivatives and hedging activities - Fair value -   HTML    264K  
                balance sheet related (Details)                                  
142: R132        Derivatives and hedging activities - Movements      HTML     86K  
                (Details 2)                                                      
143: R133        Derivatives and hedging activities - Contingent     HTML     89K  
                credit risk (Details 3)                                          
144: R134        Derivatives and hedging activities - Credit         HTML    152K  
                protection sold/purchased (Details 4)                            
145: R135        Derivatives and hedging activities - Credit         HTML     56K  
                derivatives (Details 5)                                          
146: R136        Derivatives and hedging activities (Details 6)      HTML     68K  
147: R137        Guarantees and commitments - Guarantees maturity    HTML     84K  
                (Details)                                                        
148: R138        Guarantees and commitments - Other guarantees       HTML     49K  
                (Details 2)                                                      
149: R139        Guarantees and commitments - Other commitments      HTML     81K  
                maturity (Details 7)                                             
150: R140        Transfers of financial assets (TFA) -               HTML     72K  
                Securitizations (Details)                                        
151: R141        TFA - Principal amounts outstanding / total assets  HTML     61K  
                - continuing involvement (Details 2)                             
152: R142        TFA - Key economic assumptions at time of transfer  HTML    110K  
                (Details 3)                                                      
153: R143        TFA - Key economic assumptions at balance sheet     HTML    133K  
                date (Details 4)                                                 
154: R144        TFA - Carrying amounts for sale treatmen not        HTML     65K  
                achieved (Details 5)                                             
155: R145        TFA - Transfer of certain financial assets          HTML    110K  
                accounted for as secured borrowings (Details 6)                  
156: R146        Variable interest entities (VIE) - Consolidated     HTML    266K  
                (Details 7)                                                      
157: R147        VIE - Non-consolidated (Details 8)                  HTML    129K  
158: R148        Financial instruments (FI) - Assets measured at     HTML    279K  
                fair value (Details 2)                                           
159: R149        FI - Liabilities measured at fair value (Details    HTML    262K  
                3)                                                               
160: R150        FI - Roll-forward of assets measured at fair value  HTML    523K  
                on recurring basis (Details 4)                                   
161: R151        FI - Roll-forward of liabilities measured at fair   HTML    319K  
                value on recurring basis (Details 5)                             
162: R152        FI - Roll-forward of net assets measured at fair    HTML    100K  
                value on recurring basis (Details 7)                             
163: R153        FI - Difference between fair value and unpaid       HTML    103K  
                principle balances (Details 10)                                  
164: R154        FI - Gains/losses on financial instruments          HTML     85K  
                (Details 11)                                                     
165: R155        FI - Quantitative information about level 3 assets  HTML    362K  
                at fair value (Details 14)                                       
166: R156        FI - Quantitative information about level 3         HTML    333K  
                liabilities at fair value (Details 15)                           
167: R157        FI - Carrying value and fair value not held at      HTML    117K  
                fair value (Details 16)                                          
168: R158        FI - Own credit gains/(Losses) on Fair Value        HTML     80K  
                Option Elected Instruments (Details 17)                          
169: R159        Assets pledged and collateral (Details)             HTML     54K  
170: R160        Litigation (Details)                                HTML     83K  
173: XML         IDEA XML File -- Filing Summary                      XML    344K  
171: XML         XBRL Instance -- cs-20220630_htm                     XML  31.02M  
172: EXCEL       IDEA Workbook of Financial Reports                  XLSX    680K  
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10: EX-101.SCH  XBRL Schema -- cs-20220630                           XSD   1.54M 
174: JSON        XBRL Instance as JSON Data -- MetaLinks            1,713±  2.91M  
175: ZIP         XBRL Zipped Folder -- 0001370368-22-000068-xbrl      Zip   2.98M  


‘6-K’   —   Current, Quarterly or Annual Report by a Foreign Issuer


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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form  i 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
July 29, 2022
Commission File Number 001-15244
 i 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
 i 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   yes   Form 40-F   no
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 July 29, 2022, the Credit Suisse Financial Report 2Q22 was published. A copy of the Financial Report is attached as an exhibit to this report on Form 6-K. This report on Form 6-K (including the exhibits hereto) is hereby (i) incorporated by reference into the Registration Statement on Form F-3 (file no. 333-238458) 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), (a) the sections of the attached Financial Report entitled “Investor information” and “Financial calendar and contacts” shall not be incorporated by reference into, or be deemed “filed”, with respect to any such Registration Statements, (b) the information under “Group and Bank differences” and any exhibits hereto or information contained therein which relate exclusively to Credit Suisse AG or the 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) and (c) the section of the attached Financial Report entitled “II – Treasury, risk, balance sheet and off-balance sheet – Capital management– Bank regulatory disclosures” 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).
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, 2021 (Credit Suisse 2021 20-F) filed with the SEC on March 10, 2022, the Group’s financial report for the first quarter of 2022 (Credit Suisse Financial Report 1Q22), filed with the SEC on Form 6-K on May 5, 2022, and the Group’s financial report for the second quarter of 2022 (Credit Suisse Financial Report 2Q22), filed with the SEC as Exhibit 99.1 hereto.
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 Group’s and Bank’s annual report on Form 20-F for the year ended December 31, 2021 filed with the SEC on March 10, 2022 and 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
Operating and financial review and prospects
SEC regulations require that a discussion of the results for the first six months of the current year compared to the first six months of the previous year be included in registration statements relating to securities offerings. The following discussion of the Group’s results for the six months ended June 30, 2022 (6M22) compared to the six months ended June 30, 2021 (6M21) supplements, and should be read in conjunction with, the Group’s financial reports for the first and second quarters of 2022. The Credit Suisse Financial Report 2Q22, filed as Exhibit 99.1 hereto, includes unaudited financial statements for 6M22 and 6M21.
Credit Suisse includes the results of our reporting segments and the Corporate Center. The Corporate Center includes parent company operations such as Group financing, expenses for projects sponsored by the Group and certain expenses and revenues that have not been allocated to the segments. It also includes consolidation and elimination adjustments required to eliminate intercompany revenues and expenses.
In managing the business, revenues are evaluated in the aggregate, including an assessment of trading gains and losses and the related interest income and expense from financing and hedging positions. For this reason, individual revenue categories may not be indicative of performance.
Certain reclassifications have been made to prior periods to conform to the current presentation.
Overview of Results 

in
Wealth
Management
Investment
Bank
Swiss
Bank
Asset
Management
Corporate
Center
Credit
Suisse
6M22 (CHF million)   
Net revenues  2,443 3,047 2,159 672 (264) 8,057
Provision for credit losses  13 (101) 41 2 (1) (46)
Compensation and benefits 1,523 2,188 756 323 60 4,850
Total other operating expenses 1,360 1,952 489 264 789 4,854
Total operating expenses  2,883 4,140 1,245 587 849 9,704
Income/(loss) before taxes  (453) (992) 873 83 (1,112) (1,601)
Income tax expense 268
Net income/(loss)  (1,869)
Net income/(loss) attributable to noncontrolling interests (3)
Net income/(loss) attributable to shareholders  (1,866)
6M21 (CHF million)   
Net revenues  3,998 5,728 2,054 817 80 12,677
Provision for credit losses  (11) 4,384 5 1 (10) 4,369
Compensation and benefits 1,371 1,967 746 322 157 4,563
Total other operating expenses 890 1,703 446 243 407 3,689
Total operating expenses  2,261 3,670 1,192 565 564 8,252
Income/(loss) before taxes  1,748 (2,326) 857 251 (474) 56
Income tax expense 40
Net income  16
Net income attributable to noncontrolling interests 15
Net income attributable to shareholders  1
3
Results summary
In 6M22, Credit Suissereported net loss attributable to shareholders of CHF 1,866 million compared to net income attributable to shareholders of CHF 1 million in 6M21.
Net revenues of CHF 8,057 million decreased 36% compared to 6M21, primarily reflecting lower net revenues in the Investment Bank and Wealth Management.
A release of provision for credit losses of CHF 46 million was mainly related to a release of provision for credit losses of CHF 101 million in the Investment Bank, primarily pertaining to an assessment of the future recoverability of receivables related to Archegos Capital Management (Archegos), partially offset by provision for credit losses of CHF 41 million in Swiss Bank, including CHF 27 million related to the sanctions imposed in connection with the Russian invasion of Ukraine as well as provisions related to our consumer finance business.
Total operating expenses of CHF 9,704 million increased 18% compared to 6M21, primarily reflecting a 40% increase in general and administrative expenses, mainly driven by higher litigation provisions. The Group recorded net litigation provisions of CHF 1,200 million in 6M22, primarily relating to developments in a number of previously disclosed legal matters, mainly in the Corporate Center, Wealth Management and the Investment Bank. Compensation and benefits of CHF 4,850 million increased 6%, primarily due to higher salaries and discretionary compensation expenses. 6M22 included restructuring expenses of CHF 126 million.
Income tax expense or benefit was previously calculated during interim reporting periods by applying the estimated annual effective tax rate to the income/loss of the year to date reporting period. However, the historical method could sometimes create distortions in the effective tax rate for the period. Since small changes in the estimated income or loss for 2022 would result in significant changes in the estimated annual effective tax rate, we concluded the actual year to date effective tax rate to be the best estimate of the annual effective tax rate. We have therefore used a year to date effective tax rate (discrete method) to calculate income taxes for the period ended June 30, 2022.
Income tax expense of CHF 268 million recorded in 6M22 resulted in an effective tax rate of (16.7)%.The main drivers of the effective tax rate were the impact of the valuation allowances relating to current period earnings, the non-deductible funding costs, non-deductible litigation provisions and shortfall tax charges on share-based compensation delivered in this period. This is partially offset by the impact of the geographical mix of results. Overall, net deferred tax assets decreased CHF 129 million to CHF 2,824 million during 6M22.
Segment results
In 6M22, Wealth Management reported a loss before taxes of CHF 453 million and net revenues of CHF 2,443 million.
Compared to 6M21, net revenues decreased 39%, reflecting lower revenues across all major categories. The decrease in other revenues in 6M22 mainly reflects the loss on the equity investment in Allfunds Group of CHF 521 million, while other revenues in 6M21 included a gain on the equity investment in Allfunds Group of CHF 461 million. Transaction- and performance-based revenues decreased 28%, mainly driven by lower revenues from Global Trading Solutions, lower brokerage and product issuing fees and lower corporate advisory fees. Recurring commissions and fees decreased 10%, primarily driven by lower investment product fees, the negative impact from the SCFF fee waiver program, lower wealth structuring solutions fees and lower security account and custody services fees. Net interest income decreased 2%, primarily due to higher loan margins on lower average loan volumes and lower treasury revenues, partially offset by higher deposit margins on higher average deposit volumes.
In 6M22, a provision for credit losses of CHF 13 million was recorded, compared to a release of provision for credit losses of CHF 11 million recorded in 6M21. The provision for credit losses in 6M22 mainly reflected non-specific provisions for expected credit losses due to increased credit risk related to Russia’s invasion of Ukraine. The release of provision for credit losses in 6M21 mainly related to ship finance.
Total operating expenses increased 28% compared to 6M21, reflecting higher general and administrative expenses and higher compensation and benefits.
In 6M22, Investment Bank reported a loss before taxes of CHF 992 million, compared to CHF 2,326 million in 6M21, driven by a loss of CHF 5,024 million in respect of the failure by Archegos to meet its margin commitments. Net revenues of CHF 3,047 million
4
decreased 47% compared to 6M21, mainly reflecting significantly lower capital markets and fixed income sales and trading revenues. During the first half of the year, market conditions were characterized by geopolitical and macroeconomic uncertainties, elevated levels of volatility, widening credit spreads and significantly reduced issuance activity.
Revenues from fixed income sales and trading of CHF 1,341 million decreased 42% compared to 6M21, reflecting reduced trading activity across most products due to challenging trading conditions. Securitized products revenues declined compared to a strong prior year, reflecting lower non-agency and agency trading activity and reduced asset finance revenues. Emerging markets revenues decreased, driven by lower trading and financing revenues, and included trading losses related to Russia's invasion of Ukraine. Global credit products revenues decreased, reflecting lower leveraged finance and investment grade trading activity. Macro products revenues were stable.
Revenues from equity sales and tradingof CHF 834 million decreased 8% compared to 6M21, reflecting lower cash equities and equity derivatives results, partly offset by higher prime services. Cash equities revenues decreased due to lower secondary trading revenues across regions. Equity derivatives revenues declined, reflecting lower corporate and structured equity derivatives trading activity. This was partially offset by higher prime services revenues compared to a loss of CHF 493 million related to Archegos in prime services in 6M21.
Revenues from capital markets of CHF 468 million decreased 78% compared to a strong 6M21, reflecting lower issuance activity across products due to challenging market conditions and high levels of volatility. Debt capital markets revenues decreased significantly, reflecting reduced leveraged finance and investment grade issuance activity. Equity capital markets revenues decreased significantly, driven by reduced initial public offering (IPO) and follow-on issuance activity.
Revenues from advisory of CHF 387 million increased 7% compared to 2Q21, driven by higher revenues from completed mergers and acquisitions (M&A) transactions.
In 6M22, we recorded a release of provision for credit losses of CHF 101 million compared to provision for credit losses of CHF 4,384 million recorded in 6M21. The provisions for credit losses in 6M21 was driven by a charge of CHF 4,500 million related to Archegos.
Total operating expenses of CHF 4,140 million increased 13% compared to 6M21, mainly reflecting higher general and administrative expenses and higher compensation and benefits. General and administrative expenses of CHF 1,571 million increased 17%, primarily due to higher litigation provisions. Compensation and benefits of CHF 2,188 million increased 11%, primarily reflecting higher allocated corporate function costs relating to higher Group-wide technology, risk and compliance costs. In 6M22, we had restructuring expenses of CHF 96 million compared to CHF 46 million in 6M21.
In 6M22, Swiss Bank reported income before taxes of CHF 873 million and net revenues of CHF 2,159 million.
Net revenues increased 5% compared to 6M21, mainly driven by higher other revenues as well as higher recurring commissions and fees. Other revenues in 6M22 included gains on the sale of real estate of CHF 97 million and a loss on the equity investment in SIX of CHF 7 million. Recurring commissions and fees increased 5%, mainly driven by higher revenues from our investment in Swisscard, higher fees from lending activities and higher discretionary mandate management fees. Net interest income was stable, with higher deposit margins on stable average deposit volumes offset by significantly lower treasury revenues. Transaction-based revenues were stable, with lower brokerage and product issuing fees as well as losses on equity investments, offset by higher fees from foreign exchange client business.
In 6M22, we recorded a provision for credit losses of CHF 41 million compared to CHF 5 million recorded in 6M21. Provision for credit losses in 6M22 included CHF 27 million related to the sanctions imposed in connection with the Russian invasion of Ukraine as well as provisions related to our consumer finance business. Provision for credit losses in 6M21 mainly reflected several individual cases across various industries in 1Q21, largely offset by a release of non-specific provisions for expected credit losses in 2Q21.
Total operating expenses increased 4% compared to 6M21, mainly reflecting higher general and administrative expenses as well as higher compensation and benefits.
In 6M22, Asset Management reported income before taxes of CHF 83 million and net revenues of CHF 672 million.
Net revenues of CHF 672 million decreased 18% compared to 6M21, reflecting lower performance, transaction and placement revenues and management fees, partially offset by higher investment and partnership income.
5
Performance and placement revenues of CHF 51 million decreased 70%, mainly reflecting investment-related losses compared to gains in 6M21, and lower performance fees. Management fees of CHF 530 million decreased 6%, reflecting a combination of lower average assets under management and increased investor bias towards passive products. Investment and partnership income of CHF 91 million increased 11%, in particular due to equity participation gains compared to losses in 6M21 and higher investment-related gains.
Total operating expenses increased 4%, mainly reflecting higher general and administrative expenses, which increased 13%. Compensation and benefits and commission expenses remained stable.
Corporate Center reported a loss before taxes of CHF 1,112 million in 6M22 compared to CHF 474 million in 6M21. Negative net revenues of CHF 264 million decreased CHF 344 million compared to net revenues of CHF 80 million in 6M21, primarily reflecting negative treasury results. Negative treasury results of CHF 409 million in 6M22 primarily reflected losses of CHF 116 million with respect to structured notes volatility, losses of CHF 107 million relating to fair value money market instruments, losses of CHF 78 million relating to hedging volatility and losses of CHF 77 million relating to fair value option volatility on own debt. In 6M21, treasury results of CHF 13 million primarily reflected gains of CHF 18 million with respect to structured notes volatility and revenues of CHF 5 million relating to funding activities, excluding Asset Resolution Unit-related asset funding costs, partially offset by losses of CHF 11 million relating to hedging volatility.
In the Asset Resolution Unit, we reported net revenues of CHF 61 million in 6M22 compared to negative net revenues of CHF 76 million in 6M21. Compared to 6M21, the improvement was driven by higher revenues from portfolio assets and lower asset funding costs.
Other revenues of CHF 84 million decreased CHF 59 million compared to 6M21, mainly reflecting the negative valuation impact from long-dated legacy deferred compensation and retirement programs, partially offset by the elimination of gains from trading in own shares.
In 6M22, we recorded a release of provision for credit losses of CHF 1 million compared to a release of provision for credit losses of CHF 10 million in 6M21.
Total operating expenses increased CHF 285 million compared to 6M21, mainly reflecting an increase in general and administrative expenses, partially offset by a decrease in compensation and benefits. General and administrative expenses of CHF 783 million increased CHF 412 million, primarily reflecting higher litigation provisions, mainly related to legacy legal matters. Compensation and benefits of CHF 60 million decreased CHF 97 million, primarily due to lower deferred compensation expenses from prior-year awards and lower expenses for long-dated legacy deferred compensation and retirement programs, partially offset by higher discretionary compensation expenses.
6
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 Wealth Management, Investment Bank, Swiss Bank and Asset Management divisions. 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 Bank Group
in 2Q22 2Q21 2Q22 2Q21 6M22 6M21 6M22 6M21
Statements of operations (CHF million)   
Net revenues 3,687 5,229 3,645 5,103 8,130 12,882 8,057 12,677
Total operating expenses 4,875 4,403 4,754 4,315 9,931 8,494 9,704 8,252
Income/(loss) before taxes (1,251) 852 (1,173) 813 (1,754) 15 (1,601) 56
Net income/(loss) (1,645) 298 (1,592) 247 (1,975) 9 (1,869) 16
Net income/(loss) attributable to shareholders (1,644) 326 (1,593) 253 (1,974) 112 (1,866) 1
Comparison of consolidated balance sheets
   Bank Group
end of 2Q22 4Q21 2Q22 4Q21
Balance sheet statistics (CHF million)   
Total assets 730,295 759,214 727,365 755,833
Total liabilities 681,186 711,127 681,299 711,603
Capitalization and indebtedness
   Bank Group
end of 2Q22 4Q21 2Q22 4Q21
Capitalization and indebtedness (CHF million)   
Due to banks 23,614 18,960 23,616 18,965
Customer deposits 390,762 393,841 389,484 392,819
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions 21,662 35,368 21,568 35,274
Long-term debt 152,348 160,695 158,010 166,896
All other liabilities 92,800 102,263 88,621 97,649
Total liabilities  681,186 711,127 681,299 711,603
Total equity 49,109 48,087 46,066 44,230
Total capitalization and indebtedness  730,295 759,214 727,365 755,833
7
BIS capital metrics
   Bank Group
end of 2Q22 4Q21 2Q22 4Q21
Capital and risk-weighted assets (CHF million)   
CET1 capital 42,443 44,185 37,049 38,529
Tier 1 capital 57,208 59,110 52,736 54,373
Total eligible capital 57,689 59,589 53,217 54,852
Risk-weighted assets 273,651 266,934 274,442 267,787
Capital ratios (%)   
CET1 ratio 15.5 16.6 13.5 14.4
Tier 1 ratio 20.9 22.1 19.2 20.3
Total capital ratio 21.1 22.3 19.4 20.5
Condensed consolidated financial statements
Group
Refer to III –Condensed consolidated financial statements – unaudited in the Credit Suisse Financial Report 1Q22 and Credit Suisse Financial Report 2Q22.
Bank
The Bank’s condensed consolidated financial statements – unaudited as of and for the six months ended June 30, 2022 and 2021 are attached as Exhibit 99.2 to this Form 6-K.
8
Exhibits
No. Description
23.1 Letter regarding unaudited financial information from the Independent Registered Public Accounting Firm (Credit Suisse Group AG)
23.2 Letter regarding unaudited financial information from the Independent Registered Public Accounting Firm (Credit Suisse AG)
99.1 Credit Suisse Financial Report 2Q22
99.2 Credit Suisse (Bank) Financial Statements 6M22
101.1 Interactive data files (XBRL-related documents) (Group and Bank)
104 Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
9
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: July 29, 2022
By:
/s/ Thomas Gottstein                                 /s/ David R. Mathers
      Thomas Gottstein                                      David R. Mathers
      Chief Executive Officer                              Chief Financial Officer 
10

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘6-K’ Filing    Date    Other Filings
Filed on:7/29/22424B2,  FWP
For Period end:6/30/22424B2,  424B8,  6-K,  FWP
5/5/22424B2,  424B3,  6-K,  FWP
3/10/2220-F,  424B2,  6-K,  IRANNOTICE
12/31/2120-F,  6-K
6/30/21424B2,  424B8,  6-K,  FWP,  SC 13G/A
 List all Filings 


5 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 1/05/23  Credit Suisse AG                  424B2                  2:984K                                   Toppan Merrill/FA
 1/04/23  Credit Suisse AG                  424B2                  1:1M                                     Toppan Merrill/FA
11/14/22  Credit Suisse Group AG            S-8        11/14/22    7:225K                                   Toppan Merrill/FA
 8/19/22  Credit Suisse AG                  424B2                  2:956K                                   Toppan Merrill/FA
 8/18/22  Credit Suisse AG                  424B2                  1:992K                                   Toppan Merrill/FA
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