SEC Info - Credit Suisse Group AG - ‘6-K’ for 6/30/16

SEC Info℠

Home

Help

Please Sign In

Credit Suisse Group AG – ‘6-K’ for 6/30/16

On: Thursday, 7/28/16, at 7:43am ET · For: 6/30/16 · Accession #: 1370368-16-138 · File #: 1-15244

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

 7/28/16  Credit Suisse Group AG            6-K         6/30/16  162:53M                                    MDD Mgmt Digital … AG/FA

Report by a Foreign Issuer — Form 6-K — Rule 13a-16 / 15d-16
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 6-K         Report by a Foreign Issuer                          HTML     93K 
 3: EX-23       23.1 Letter Regarding Unaudited Financial           HTML     41K 
                Information From the Independent Registered Public               
                Accounting Firm                                                  
 4: EX-99       99.1 Credit Suisse Financial Report 2Q16            HTML   4.09M 
 2: EX-12       12.1 Ratio of Earnings to Fixed Charges             HTML     54K 
11: R1          Document and Entity Information                     HTML     66K 
12: R2          Consolidated statements of operations               HTML    106K 
13: R3          Consolidated statements of comprehensive income     HTML     75K 
14: R4          Consolidated balance sheets                         HTML    210K 
15: R5          Consolidated statements of changes in equity        HTML    137K 
16: R6          Consolidated statements of changes in equity        HTML     40K 
                (Parenthetical)                                                  
17: R7          Consolidated statements of cash flows               HTML    165K 
18: R8          Summary of significant accounting policies          HTML     45K 
19: R9          Recently issued accounting standards                HTML     62K 
20: R10         Business developments                               HTML     50K 
21: R11         Discontinued operations                             HTML     46K 
22: R12         Segment information                                 HTML     98K 
23: R13         Net interest income                                 HTML     74K 
24: R14         Commissions and fees                                HTML     63K 
25: R15         Trading revenues                                    HTML     59K 
26: R16         Other revenues                                      HTML     58K 
27: R17         Provision for credit losses                         HTML     49K 
28: R18         Compensation and benefits                           HTML     55K 
29: R19         General and administrative expenses                 HTML     60K 
30: R20         Restructuring expenses                              HTML     88K 
31: R21         Earnings per share                                  HTML     77K 
32: R22         Trading assets and liabilities                      HTML     63K 
33: R23         Investment securities                               HTML    100K 
34: R24         Loans, allowance for loan losses and credit         HTML    603K 
                quality                                                          
35: R25         Goodwill                                            HTML     96K 
36: R26         Other assets and other liabilities                  HTML     83K 
37: R27         Long-term debt                                      HTML     60K 
38: R28         Accumulated other comprehensive income              HTML    196K 
39: R29         Offsetting of financial assets and financial        HTML    205K 
                liabilities                                                      
40: R30         Tax                                                 HTML     68K 
41: R31         Employee deferred compensation                      HTML    102K 
42: R32         Pension and other post-retirement benefits          HTML     67K 
43: R33         Derivatives and hedging activities                  HTML    364K 
44: R34         Guarantees and commitments                          HTML    108K 
45: R35         Transfers of financial assets and variable          HTML    374K 
                interest entities                                                
46: R36         Financial instruments                               HTML   1.69M 
47: R37         Assets pledged and collateral                       HTML     49K 
48: R38         Litigation                                          HTML     61K 
49: R39         Subsidiary guarantee information                    HTML    700K 
50: R40         Summary of significant accounting policies          HTML     43K 
                (Policies)                                                       
51: R41         Segment information (Tables)                        HTML     93K 
52: R42         Net interest income (Tables)                        HTML     75K 
53: R43         Commissions and fees (Tables)                       HTML     62K 
54: R44         Trading revenues (Tables)                           HTML     58K 
55: R45         Other revenues (Tables)                             HTML     58K 
56: R46         Provision for credit losses (Tables)                HTML     49K 
57: R47         Compensation and benefits (Tables)                  HTML     52K 
58: R48         General and administrative expenses (Tables)        HTML     60K 
59: R49         Restructuring expenses (Tables)                     HTML     90K 
60: R50         Earnings per share (Tables)                         HTML     75K 
61: R51         Trading assets and liabilities (Tables)             HTML     65K 
62: R52         Investment securities (Tables)                      HTML    105K 
63: R53         Loans, allowance for loan losses and credit         HTML    614K 
                quality (Tables)                                                 
64: R54         Goodwill (Tables)                                   HTML     91K 
65: R55         Other assets and other liabilities (Tables)         HTML     83K 
66: R56         Long-term debt (Tables)                             HTML     65K 
67: R57         Accumulated other comprehensive income (Tables)     HTML    203K 
68: R58         Offsetting of financial assets and financial        HTML    199K 
                liabilities (Tables)                                             
69: R59         Tax (Tables)                                        HTML     63K 
70: R60         Employee deferred compensation (Tables)             HTML    105K 
71: R61         Pension and other post-retirement benefits          HTML     65K 
                (Tables)                                                         
72: R62         Derivatives and hedging activities (Tables)         HTML    362K 
73: R63         Guarantees and commitments (Tables)                 HTML    101K 
74: R64         Transfers of financial assets and variable          HTML    370K 
                interest entities (Tables)                                       
75: R65         Financial instruments (Tables)                      HTML   1.66M 
76: R66         Assets pledged and collateral (Tables)              HTML     51K 
77: R67         Subsidiary guarantee information (Tables)           HTML    698K 
78: R68         Recently issued accounting standards (Details)      HTML     47K 
79: R69         Segment information - Income statement related      HTML     73K 
                (Details)                                                        
80: R70         Segment information - Balance sheet related         HTML     61K 
                (Details 2)                                                      
81: R71         Net interest income (Details)                       HTML     80K 
82: R72         Commissions and fees (Details)                      HTML     64K 
83: R73         Trading revenues (Details)                          HTML     61K 
84: R74         Other revenues (Details)                            HTML     60K 
85: R75         Provision for credit losses (Details)               HTML     52K 
86: R76         Compensation and benefits (Details)                 HTML     55K 
87: R77         General and administrative expenses (Details)       HTML     63K 
88: R78         Restructuring expenses (Details)                    HTML     71K 
89: R79         Restructuring provision - Rollforward (Details 2)   HTML     68K 
90: R80         Earnings per share (Details)                        HTML     94K 
91: R81         Trading assets and liabilities (Details)            HTML     60K 
92: R82         Trading assets and liabilities - Cash collateral -  HTML     50K 
                netted (Details 2)                                               
93: R83         Investment securities (Details)                     HTML     48K 
94: R84         Investment securities by type (Details 2)           HTML    100K 
95: R85         Investment securities - Proceeds/realized           HTML     49K 
                gains/losses (Details 4)                                         
96: R86         Investment securities - Maturities of amortized     HTML     86K 
                costs/FV/Avg yield (Details 5)                                   
97: R87         Loans, allowance for loan losses and credit         HTML     96K 
                quality (Details)                                                
98: R88         Loans, allowance for loan losses and credit         HTML    110K 
                quality - Allowance roll-forward (Details 2)                     
99: R89         Loans, allowance for loan losses and credit         HTML    118K 
                quality - Counterparty rating (Details 3)                        
100: R90         Loans, allowance for loan losses and credit         HTML    161K  
                quality - Aging analysis (Details 4)                             
101: R91         Loans, allowance for loan losses and credit         HTML    102K  
                quality - Impaired loans (Details 5)                             
102: R92         Loans, allowance for loan losses and credit         HTML    102K  
                quality - Impaired loans details (Details 6)                     
103: R93         Loans, allowance for loan losses and credit         HTML    127K  
                quality - Impaired loans details (Details 7)                     
104: R94         Loans, allowance for loan losses and credit         HTML     59K  
                quality - Restructured loans (Details 8)                         
105: R95         Goodwill (Details)                                  HTML     97K  
106: R96         Other assets and other liabilities (Details)        HTML    117K  
107: R97         Long-term debt (Details)                            HTML     58K  
108: R98         Long-term debt - Maturities (Details 2)             HTML     58K  
109: R99         Accumulated other comprehensive income (Details)    HTML     94K  
110: R100        AOCI - Additional share information (Details 2)     HTML     84K  
111: R101        AOCI - Significant reclassification adjustments     HTML     78K  
                (Details 3)                                                      
112: R102        Offsetting of financial assets (Details)            HTML    182K  
113: R103        Offsetting of financial liabilities (Details 2)     HTML    205K  
114: R104        Tax - Income statement related/reconciliation of    HTML    115K  
                tax rate (Details)                                               
115: R105        Tax - Balance sheet related (Details 2)             HTML     48K  
116: R106        Tax - Net deferred tax assets/liabilities by type   HTML     68K  
                (Details 3)                                                      
117: R107        Deferred compensation expense (Details)             HTML     73K  
118: R108        Estimated unrecognized deferred compensation        HTML     60K  
                (Details 2)                                                      
119: R109        Share-based awards (Details 3)                      HTML     77K  
120: R110        Cash-based awards (Details 5)                       HTML     56K  
121: R111        Pension and other post-retirement benefits -        HTML     78K  
                Obligation and funded status (Details)                           
122: R112        Derivatives and hedging activities - Fair value -   HTML    163K  
                balance sheet related (Details)                                  
123: R113        Derivatives and hedging activities - Movements      HTML     76K  
                (Details 2)                                                      
124: R114        Derivatives and hedging activities - Contingent     HTML     62K  
                credit risk (Details 3)                                          
125: R115        Derivatives and hedging activities - Credit         HTML    108K  
                protection sold/purchased (Details 4)                            
126: R116        Derivatives and hedging activities - Credit         HTML     51K  
                derivatives (Details 5)                                          
127: R117        Guarantees and commitments - Guarantees maturity    HTML     68K  
                (Details)                                                        
128: R118        Guarantees and commitments - Other guarantees       HTML     44K  
                (Details 2)                                                      
129: R119        Guarantees and commitments - Other commitments      HTML     66K  
                maturity (Details 7)                                             
130: R120        Transfers of financial assets (TFA) -               HTML     62K  
                Securitizations (Details)                                        
131: R121        TFA - Principal amounts outstanding / total assets  HTML     57K  
                - continuing involvement (Details 2)                             
132: R122        TFA - Key economic assumptions at time of transfer  HTML     85K  
                (Details 3)                                                      
133: R123        TFA - Key economic assumptions at balance sheet     HTML     99K  
                date (Details 4)                                                 
134: R124        TFA - Carrying amounts for sale treatmen not        HTML     56K  
                achieved (Details 5)                                             
135: R125        TFA - Accounted for as sales - by transaction type  HTML     83K  
                (Details 6)                                                      
136: R126        TFA - Transfer of certain financial assets          HTML     85K  
                accounted for as secured borrowings (Details 7)                  
137: R127        Variable interest entities (VIE) - Consolidated     HTML    158K  
                (Details 8)                                                      
138: R128        VIE - Non-consolidated (Details 9)                  HTML     86K  
139: R129        Financial instruments (FI) - Assets measured at     HTML    255K  
                fair value on recurring basis (Details 2)                        
140: R130        FI - Liabilities measured at fair value on          HTML    185K  
                recurring basis (Details 3)                                      
141: R131        FI - Roll-forward of assets measured at fair value  HTML    296K  
                on recurring basis (Details 4)                                   
142: R132        FI - Roll-forward of liabilities measured at fair   HTML    188K  
                value on recurring basis (Details 5)                             
143: R133        FI - Roll-forward of net assets measured at fair    HTML     74K  
                value on recurring basis (Details 6)                             
144: R134        FI - Gains/losses on assets/liabilities using       HTML     56K  
                unobservable inputs (Details 7)                                  
145: R135        FI - Non-recurring fair value changes (Details 8)   HTML     46K  
146: R136        FI - Difference between fair value and unpaid       HTML     86K  
                principle balances (Details 9)                                   
147: R137        FI - Gains/losses on financial instruments          HTML     75K  
                (Details 10)                                                     
148: R138        FI - Fair value, unfunded commitments, term of      HTML    152K  
                redemption conditions (Details 11)                               
149: R139        FI - Transfers between levels 1 and 2 (Details 14)  HTML     66K  
150: R140        FI - Qualitative information about level 3 assets   HTML    306K  
                at fair value (Details 15)                                       
151: R141        FI - Qualitative information about level 3          HTML    184K  
                liabilities at fair value (Details 16)                           
152: R142        FI - Carrying value and fair value not held at      HTML     89K  
                fair value (Details 17)                                          
153: R143        FI - Own credit gains/(Losses) on Fair Value        HTML     59K  
                Option Elected Instruments (Details 18)                          
154: R144        Assets pledged and collateral (Details)             HTML     49K  
155: R145        Litigation (Details)                                HTML     82K  
156: R146        Subsidiary guarantee information - Income           HTML    149K  
                statement related (Details)                                      
157: R147        Subsidiary guarantee information - Comprehensive    HTML    113K  
                income related (Details 2)                                       
158: R148        Subsidiary guarantee information - Balance sheet    HTML    205K  
                related (Details 3)                                              
159: R149        Subsidiary guarantee information - Cash flow        HTML    200K  
                related (Details 4)                                              
161: XML         IDEA XML File -- Filing Summary                      XML    313K  
160: EXCEL       IDEA Workbook of Financial Reports                  XLSX    288K  
 7: EX-101.INS  XBRL Instance -- cs-20160630                         XML  20.29M 
 5: EX-101.CAL  XBRL Calculations -- cs-20160630_cal                 XML    737K 
 6: EX-101.DEF  XBRL Definitions -- cs-20160630_def                  XML   4.99M 
 8: EX-101.LAB  XBRL Labels -- cs-20160630_lab                       XML  10.16M 
 9: EX-101.PRE  XBRL Presentations -- cs-20160630_pre                XML   5.84M 
10: EX-101.SCH  XBRL Schema -- cs-20160630                           XSD   1.18M 
162: ZIP         XBRL Zipped Folder -- 0001370368-16-000138-xbrl      Zip   1.03M

‘6-K’ — Report by a Foreign Issuer

This is an HTML Document rendered as filed. [ Alternative Formats ]

6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

July 28, 2016

Commission File Number 001-15244

CREDIT SUISSE GROUP AG

(Translation of registrant’s name into English)

Paradeplatz 8, CH 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

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.

Introduction

On July 28, 2016, the Credit Suisse Financial Report 2Q16 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. 333-202913) and the Registration Statements on Form S-8 (file no. 333-101259 and file no. 333-208152), 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), the sections of the attached Financial Report entitled “Message from the Chairman and the Chief Executive Officer”, “Investor information” and “Financial calendar and contacts”.

Credit Suisse Group AG files an annual report on Form 20-F and furnishes or files quarterly reports, including unaudited interim financial information, and 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 are available to the public over the internet at the SEC’s website at www.sec.gov and from the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549 (telephone 1-800-SEC-0330). Credit Suisse Group AG’s SEC reports are also available under “Investor Relations” on its 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 Swiss 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 about the Group is included in this report on Form 6-K, which should be read together with the Group’s annual report on Form 20-F for the year ended December 31, 2015 (Credit Suisse 2015 20-F), the financial report for the first quarter of 2016, furnished to or filed with the SEC on Form 6-K on May 10, 2016, and the financial report for the second quarter of 2016, furnished to or filed with the SEC as Exhibit 99.1 hereto.

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 and others on its 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 Credit Suisse 2015 20-F, and subsequent annual reports on Form 20-F filed by the Group with the SEC and the Group’s reports on Form 6-K furnished to or filed with the SEC, and other uncertainties and events.

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, 2016 (6M16) compared to the six months ended June 30, 2015 (6M15) supplements, and should be read in conjunction with, the Group’s financial reports for the first and second quarters of 2016. The Group’s financial report for the second quarter of 2016 (Credit Suisse Financial Report 2Q16), filed as Exhibit 99.1 hereto, includes unaudited financial information for 6M16 and 6M15.

Credit Suisse

Credit Suisse includes the results of our six reporting segments, including the Strategic Resolution Unit, 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 / end of	Swiss Universal Bank	International Wealth Management	Asia Pacific	Global Markets	Investment Banking & Capital Markets	Corporate Center	Core Results	Strategic Resolution Unit	Credit Suisse
6M16 (CHF million)
Net revenues	2,693	2,318	1,818	2,875	931	15	10,650	(904)	9,746
Provision for credit losses	15	14	(19)	6	29	(1)	44	78	122
Compensation and benefits	966	1,041	823	1,449	595	(30)	4,844	372	5,216
Total other operating expenses	827	718	544	1,464	234	248	4,035	658	4,693
of which restructuring expenses	44	23	11	150	19	0	247	99	346
Total operating expenses	1,793	1,759	1,367	2,913	829	218	8,879	1,030	9,909
Income/(loss) before taxes	885	545	470	(44)	73	(202)	1,727	(2,012)	(285)
6M15 (CHF million)
Net revenues	2,862	2,286	2,128	4,077	967	557	12,877	725	13,602
Provision for credit losses	56	1	8	0	0	0	65	16	81
Compensation and benefits	981	1,086	763	1,645	670	141	5,286	604	5,890
Total other operating expenses	914	649	525	1,314	199	204	3,805	659	4,464
of which restructuring expenses	–	–	–	–	–	–	–	–	–
Total operating expenses	1,895	1,735	1,288	2,959	869	345	9,091	1,263	10,354
Income/(loss) before taxes	911	550	832	1,118	98	212	3,721	(554)	3,167

Results summary

In 6M16, Credit Suisse reported a loss attributable to shareholders of CHF 132 million compared to net income attributable to shareholders of CHF 2,105 million in 6M15.

Net revenues of CHF 9,746 million decreased 28% compared to 6M15, primarily reflecting lower net revenues in the Strategic Resolution Unit, Global Markets and Corporate Center.

Provision for credit losses of CHF 122 million primarily reflected net provisions of CHF 78 million in the Strategic Resolution Unit, CHF 29 million in Investment Banking & Capital Markets, and CHF 15 million in Swiss Universal Bank. The net increase in provision for credit losses of CHF 41 million from CHF 81 million in 6M15 was mainly related to increases of CHF 62 million in the Strategic Resolution Unit and CHF 29 million in Investment Banking & Capital Markets, partially offset by a decrease of CHF 41 million in Swiss Universal Banking.

Total operating expenses of CHF 9,909 million decreased 4% compared to 6M15, primarily reflecting a 11% decrease in compensation and benefits, mainly due to reduced discretionary compensation expenses and lower deferred compensation expenses from prior-year awards, reflecting a lower deferral rate, and slightly lower general and administrative expenses, mainly reflecting lower other general and administrative expenses, such as dues and fees and non-income taxes, mostly offset by an increase in professional services expenses. In addition, we incurred CHF 346 million of restructuring expenses in 6M16 in connection with our new strategy, of which CHF 232 million related to severance and other compensation expenses.

Income tax credit of CHF 158 million recorded in 6M16 mainly reflected the impact of the geographical mix of results and the impact of a deferred tax asset re-assessment in Switzerland. Overall, net deferred tax assets increased CHF 146 million to CHF 6,271 million as of the end of 6M16 compared to the end of 2015, mainly driven by the deferred tax asset re-assessment. Deferred tax assets on net operating losses increased CHF 840 million to CHF 2,594 million during 6M16. The Credit Suisse effective tax rate was 55.4% in 6M16, compared to 33.7% in 6M15.

Segment results

In 6M16, Swiss Universal Bank reported income before taxes of CHF 885 million and net revenues of CHF 2,693 million. Compared to 6M15, net revenues were 6% lower, mainly due to lower transaction-based revenues and lower recurring commissions and fees, including the impact of CHF 148 million from the deconsolidation of the cards issuing business in 2015, partially offset by higher net interest income. Transaction-based revenues decreased 19%, reflecting significantly lower fees from foreign exchange client business, significantly lower brokerage and product issuing fees and lower sales and trading revenues reflecting lower client activity. 6M15 included higher client activity following the Swiss National Bank (SNB) actions taken in January 2015. Recurring commissions and fees were 14% lower primarily reflecting the CHF 115 million impact from the deconsolidation of the cards issuing business and the impact of lower average assets under management. Net interest income increased 9% compared to 6M15, mainly driven by improved loan margins on stable average loan volumes and stable deposit margins on lower average deposit volumes.

Total operating expenses were 5% lower compared to 6M15 with lower general and administrative expenses, reflecting the impact from the deconsolidation of the cards issuing business, and slightly lower compensation and benefits, partly offset by restructuring expenses of CHF 44 million in connection with the implementation of the new strategy.

In 6M16, International Wealth Management reported income before taxes of CHF 545 million and net revenues of CHF 2,318 million. Net revenues were stable compared to 6M15, reflecting significantly higher net interest income in Private Banking, partially offset by lower transaction- and performance-based revenues and slightly lower recurring commissions and fees.

Net revenues in Private Banking increased slightly compared to 6M15, primarily driven by significantly higher net interest income, partially offset by lower transaction- and performance-based revenues and lower recurring commissions and fees. Net interest income increased 33%, reflecting higher loan and deposit margins on higher average loan and deposit volumes. Transaction- and performance-based revenues decreased 15%, mainly driven by lower brokerage and product issuing fees, lower fees from foreign exchange client business, significantly lower half-yearly performance fees reflecting the challenging market conditions and a decline in sales and trading revenues. 6M15 included higher client activity due to the SNB actions taken in January 2015. Recurring commissions and fees decreased 6%, primarily driven by lower security account and custody services fees, a decline in banking services fees and included the impact of lower average assets under management, partially offset by higher investment advisory fees.

Net revenues in Asset Management were stable compared to 6M15, as growth in management fees was offset by lower performance and placement revenues and lower investment and partnership income. Management fees increased 5% and included the impact of slightly higher average assets under management. Investment and partnership income decreased 4%, mainly reflecting lower performance from single manager hedge funds, partially offset by a residual gain from a private equity interest in 1Q16. Performance and placement revenues decreased 22% primarily from lower placement fees, partially offset by higher investment-related gains.

Total operating expenses were stable, with higher general and administrative expenses and restructuring expenses of CHF 23 million in 6M16, offset by lower compensation and benefits.

In 6M16, Asia Pacific reported income before taxes of CHF 470 million and net revenues of CHF 1,818 million. Compared to 6M15, net revenues decreased 15%, driven by lower equity sales and trading revenues reflecting the absence of the strong market conditions experienced in 6M15.

Net revenues in Private Banking increased 9% compared to 6M15, mainly reflecting an increase in net interest income, partially offset by a decrease in transaction-based and other revenues. The increase in net interest income reflected higher loan and deposit margins on higher average volumes. The decrease in transaction-based revenues reflected lower brokerage and product issuing fees, partially offset by higher corporate advisory fees arising from integrated solutions and a dividend from an equity participation. The decrease in other revenues reflected a reversal of gains on credit hedges that were offset by a corresponding release of provision for credit losses.

Net revenues in Investment Banking decreased 24% compared to 6M15, mainly due to lower equity sales and trading revenues, partially offset by higher fixed income sales and trading revenues and higher underwriting and advisory fees. The decrease in equity sales and trading revenues reflected the absence of the strong market conditions experienced in 6M15, primarily in derivatives and systematic market making. Equity derivatives results in 6M16 included the positive impact of CHF 65 million resulting from a recalibration of the valuation model for certain hybrid instruments to reflect increased observability of pricing data and a more standardized approach across products. Higher fixed income sales and trading revenues were primarily driven by rates products reflecting increased client activity.

Total operating expenses increased 6%, reflecting increased compensation and benefits driven by growth-related higher headcount, and higher general and administrative expenses.

In 6M16, Global Markets reported a loss before taxes of CHF 44 million and net revenues of CHF 2,875 million. Net revenues declined 29%, primarily reflecting challenging market conditions, notably in 1Q16, and lower capital usage in line with our accelerated strategy to right-size our business. Revenues from credit of CHF 1,132 million declined 41% compared to 6M15, primarily due to significantly lower results in our securitized products business. Securitized products trading revenues declined across most products primarily as we decreased risk in the portfolio by reducing inventory positions and due to lower capital usage compared to 6M15. Global credit products revenues were also lower, as lower investment grade trading activity was partially offset by improved leveraged finance trading activity. Solutions revenues of CHF 754 million declined 22% compared to 6M15, reflecting increased volatility and macroeconomic uncertainty surrounding central bank actions, which resulted in lower client activity. Emerging markets revenues were also lower, mainly due to lower structured products performance. We had lower revenues in global macro products due to reduced client activity in our rates business, partially offset by improved performance in our foreign exchange business. Equity derivatives revenues declined mainly due to subdued client activity in fund linked products. Revenues from equities of CHF 1,070 million decreased 14% compared to 6M15 due to lower revenues from systematic market making, primarily reflecting challenging operating conditions in 1Q16. Prime services revenues declined, reflecting reduced leverage exposure and reduced client activity and risk appetite. Cash equities trading revenues declined, reflecting the negative impact of lower primary issuance activity. Equity underwriting revenues declined in line with muted industry-wide activity across initial public offerings (IPOs) and follow-on offerings.

Total operating expenses declined 2% compared to 6M15, primarily due to lower compensation and benefits, partially offset by restructuring expenses booked in 6M16. In light of the acceleration of our strategic initiatives, total operating expenses included CHF 150 million in restructuring expenses in 6M16.

In 6M16, Investment Banking & Capital Markets reported income before taxes of CHF 73 million, a decrease of 26% compared to 6M15. Net revenues of CHF 931 million declined 4% compared to 6M15, primarily due to lower equity underwriting revenues, partially offset by higher revenues from advisory and debt underwriting. Revenues from advisory and other fees of CHF 404 million increased 35% compared to 6M15, reflecting an increase in our share of wallet, despite a decline in the industry-wide fee pool. Debt underwriting revenues of CHF 483 million increased 3% due to higher derivative financing. Equity underwriting revenues of CHF 139 million declined 37%, driven by lower industry-wide IPO and follow-on offering issuance activity. Compared to 6M15, net revenues were also impacted by lower corporate lending revenues, recognized in other revenues.

Total operating expenses decreased 5% compared to 6M15, primarily reflecting a decrease in compensation and benefits.

In 6M16, the Strategic Resolution Unit reported a loss before taxes of CHF 2,012 million compared to a loss before taxes of CHF 554 million in 6M15. Negative net revenues were CHF 904 million in 6M16 compared to net revenues of CHF 725 million in 6M15. The movement was primarily driven by valuation adjustments in the legacy investment banking portfolio and lower revenues relating to the restructuring of select onshore businesses.

Total operating expenses decreased 18% compared to 6M15, driven by lower compensation and benefits, reflecting the transfer of our US private banking business, and lower general and administrative expenses. These decreases were partially offset by restructuring expenses recorded in 6M16.

Corporate Center loss before taxes was CHF 202 million in 6M16 compared to income before taxes of CHF 212 million in 6M15. We early adopted certain sections of ASU 2016-01, which required changes in fair value relating to the instrument-specific credit risk of fair value option-elected financial liabilities be presented separately in accumulated other comprehensive income. Therefore, fair value gains or losses from movements in own credit spreads were no longer recorded in the Corporate Center beginning in 2016. Other revenues primarily reflected required elimination adjustments associated with trading in own shares. Compensation and benefits mainly reflected fair value adjustments on certain deferred compensation plans not allocated to the segments. General and administrative expenses primarily reflected costs associated with the evolution of our legal entity structure to meet developing and future regulatory requirements.

Condensed consolidated financial statements

Please refer to III –Condensed consolidated financial statements – unaudited in the Credit Suisse Financial Report 1Q16 and 2Q16.

Exhibits

No. Description

12.1 Ratio of earnings to fixed charges

23.1 Letter regarding unaudited financial information from the Independent Registered Public Accounting Firm

99.1 Credit Suisse Financial Report 2Q16

101.1 Interactive data files (XBRL-related documents) – Credit Suisse Group AG

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.

CREDIT SUISSE GROUP AG

(Registrant)

Date: July 28, 2016

By:

/s/ Tidjane Thiam

Tidjane Thiam

Chief Executive Officer

By:

/s/ David R. Mathers

David R. Mathers

Chief Financial Officer

Dates Referenced Herein and Documents Incorporated by Reference

This ‘6-K’ Filing	Date	Other Filings

Filed on:	7/28/16	6-K
For Period end:	6/30/16	6-K
	5/10/16	6-K
	12/31/15	20-F, 6-K
	6/30/15	6-K
		List all Filings

↑Top

Filing Submission 0001370368-16-000138 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)