Credit Suisse Overview: Credit Suisse is a major international banking firm headquartered in Zurich, Switzerland. Much of its investment banking operations are the legacy of a business combination with First Boston. Its major lines of business in the U.S. include:
- Private Banking
- Private Advisors (Offshore Investing)
- Mutual Funds and Asset Management
- Private Equity
- Investment Banking
Size: Credit Suisse reports these figures as of September 30, 2008. Currency translations are at $1.12 to the Swiss Franc (CHF), the exchange rate as of that date.
- Worldwide Employees = 50,300
- Operations in 50 Countries
- Assets Under Management (Wealth Mgmt Division) = CHF 751.2 billion ($841.5 billion)
- Assets Under Management (Asset Mgmt Division) = CHF 577.8 billion ($647.2 billion)
Positives: Total employment is up by 3,100 (7%) from September 2007 to September 2008. The health of the core banking business of Credit Suisse gives hope that the firm can ride out losses related to its investment banking and securities trading activities. Headcount has been steady or increasing slightly in all divisions, indicating management's confidence in its business model and longterm prospects.
Negatives: Credit Suisse has posted a loss of CHF 2.2 billion ($2.4 billion) for the first 9 months of 2008. While private banking remains highly profitable, investment banking and, to a lesser degree, asset management are the divisions suffering losses in 2008. Steep declines in underwriting revenues and large losses in fixed income trading are the major factors in the poor 200 results.
