Media release
Ad hoc announcement pursuant to Art. 53 LR Credit Suisse accelerates radical restructuring of Investment Bank; Enters into definitive transaction agreements to sell a significant part of its Securitized Products Group to Apollo

Zurich and New York, November 15, 2022 – Credit Suisse accelerates the radical restructuring of its Investment Bank with the announcement that it has entered into definitive transaction agreements to sell a significant part of its Securitized Products Group (SPG) and other related financing businesses to Apollo Global Management (Apollo).¹ The execution of these agreements represents an important step towards a managed exit from the Securitized Products business, which is expected to significantly de-risk the Investment Bank and release capital to invest in Credit Suisse’s core businesses.

As part of the transaction, Apollo has agreed to acquire a significant part of Credit Suisse’s SPG portfolio assets. This transaction, together with the contemplated sale of other portfolio assets to third-party investors, is expected to reduce SPG assets from USD 75 billion² to approximately USD 20 billion, through a series of transactions expected to be completed by mid-2023.

Completion of these transactions is expected to achieve a release of Risk Weighted Assets (RWAs) of up to approximately USD 10 billion, depending on the scope of assets ultimately transferred.³ The approximately USD 20 billion of remaining assets, which will generate income to support the exit from the SPG business, will be managed by Apollo under an investment management relationship with an expected term of five years to be entered into at the first closing.

Apollo is expected to hire the majority of the SPG team and will receive customary transitional services from Credit Suisse following the closing of the transaction in order to maintain a seamless experience for clients. Credit Suisse will also provide financing for a portion of the assets transferred to Apollo.

Under the terms of the transactions contemplated with Apollo, Credit Suisse’s CET1 capital ratio is expected to be strengthened by the release of RWAs and the recognition, upon closing, of the premium paid by Apollo, whereby the final amount will depend on discount rates and other transaction-related factors.

Closing of the transaction is expected in the first half of 2023, subject to regulatory approvals, customer consents and other customary closing conditions.

¹ Refers to entities and funds managed by affiliates of Apollo Global Management

² As of September 30, 2022

³ RWA release also dependent on risk-weight methodology

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Contact details – Credit Suisse

Kinner Lakhani, Investor Relations, Credit Suisse

Tel: +41 44 333 71 49

Email: investor.relations@credit-suisse.com

Dominik von Arx, Corporate Communications, Credit Suisse

Tel: +41 844 33 88 44

Email: media.relations@credit-suisse.com

Contact details – Apollo

Noah Gunn, Investor Relations, Apollo

Tel: +1 212 822-0540

Email: IR@apollo.com

Joanna Rose, Media Relations, Apollo

Tel: +1 212 822-0491

Email: Communications@apollo.com

Credit Suisse

Credit Suisse is one of the world's leading financial services providers. The bank’s strategy builds on its core strengths: its position as a leading wealth manager, its specialist investment banking and asset management capabilities and its strong presence in its home market of Switzerland. Credit Suisse seeks to follow a balanced approach to wealth management, aiming to capitalize on both the large pool of wealth within mature markets as well as the significant growth in wealth in Asia Pacific and other emerging markets, while also serving key developed markets with an emphasis on Switzerland. The bank employs more than 50,000 people. The registered shares (CSGN) of 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 document contains statements that constitute forward-looking statements. 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, targets 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.

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, targets, goals, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to:

▪ the ability to maintain sufficient liquidity and access capital markets;

▪ market volatility, increases in inflation and interest rate fluctuations or developments affecting interest rate levels;

▪ the ongoing significant negative consequences, including reputational harm, of the Archegos and supply chain finance funds matters, as well as other recent events, and our ability to successfully resolve these matters;

▪ the impact of social media speculation and unsubstantiated media reports about our business and its performance;

▪ the extent of outflows of assets or future net new asset generation across our divisions;

▪ our ability to improve our risk management procedures and policies and hedging strategies;

▪ 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, but not limited to, the risk of negative impacts of COVID-19 on the global economy and financial markets, Russia’s invasion of Ukraine, the resulting sanctions from the US, EU, UK, Switzerland and other countries and the risk of continued slow economic recovery or downturn in the EU, the US or other developed countries or in emerging markets in 2022 and beyond;

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▪ the emergence of widespread health emergencies, infectious diseases or pandemics, such as COVID-19, and the actions that may be taken by governmental authorities to contain the outbreak or to counter its impact;

▪ potential risks and uncertainties relating to the severity of impacts from COVID-19 and the duration of the pandemic, including potential material adverse effects on our business, financial condition and results of operations;

▪ the direct and indirect impacts of deterioration or slow recovery in residential and commercial real estate markets;

▪ adverse rating actions by credit rating agencies in respect of us, sovereign issuers, structured credit products or other creditrelated exposures;

▪ the ability to achieve our strategic initiatives, including those related to our targets, ambitions and goals, such as our financial ambitions as well as various goals and commitments to incorporate certain environmental, social and governance considerations into our business strategy, products, services and risk management processes;

▪ our ability to achieve our announced comprehensive new strategic direction for the Group and significant changes to its structure and organization;

▪ our ability to successfully implement the divestment of any non-core business;

▪ the future level of any impairments and write-downs, including from the revaluation of deferred tax assets, resulting from disposals and the implementation of the proposed strategic initiatives;

▪ the ability of counterparties to meet their obligations to us and the adequacy of our allowance for credit losses;

▪ the effects of, and changes in, fiscal, monetary, exchange rate, trade and tax policies;

▪ the effects of currency fluctuations, including the related impact on our business, financial condition and results of operations due to moves in foreign exchange rates;

▪ geopolitical and diplomatic tensions, instabilities and conflicts, including war, civil unrest, terrorist activity, sanctions or other geopolitical events or escalations of hostilities, such as Russia’s invasion of Ukraine;

▪ political, social and environmental developments, including climate change;

▪ the ability to appropriately address social, environmental and sustainability concerns that may arise from our business activities;

▪ the effects of, and the uncertainty arising from, the UK’s withdrawal from the EU;

▪ 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;

▪ the risk of cyber attacks, information or security breaches or technology failures on our reputation, business or operations, the risk of which is increased while large portions of our employees work remotely;

▪ the adverse resolution of litigation, regulatory proceedings and other contingencies;

▪ actions taken by regulators with respect to our business and practices and possible resulting changes to our business organization, practices and policies in countries in which we conduct our operations;

▪ the effects of changes in laws, regulations or accounting or tax standards, policies or practices in countries in which we conduct our operations;

▪ the discontinuation of LIBOR and other interbank offered rates and the transition to alternative reference rates;

▪ the potential effects of changes in our legal entity structure;

▪ competition or changes in our competitive position in geographic and business areas in which we conduct our operations;

▪ the ability to retain and recruit qualified personnel;

▪ the ability to protect our reputation and promote our brand;

▪ the ability to increase market share and control expenses;

▪ technological changes instituted by us, our counterparties or competitors;

▪ 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 noncore assets; and

▪ other unforeseen or unexpected events and our success at managing these and 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 2021 and in “Risk factor” in Credit Suisse results – Credit Suisse in our 3Q22 Financial Report.

Disclaimer

This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not necessarily a guide to the future. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

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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)

	By:	/s/ Reto Hösli
		Reto Hösli
		Director


		/s/ Annina Müller
		Annina Müller
Date: November 15, 2022		Vice President