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

October 25, 2012

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.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

   Yes      No   

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-.

Introduction

This report filed on Form 6-K contains information on Credit Suisse Group AG and consists of the Credit Suisse Financial Release 3Q12, which is attached as an exhibit to this Form 6-K and all of which, except the sections entitled “Dear shareholders”, “Investor information” and “Financial calendar and contacts”, is incorporated herein by reference. On or about November 6, 2012, Credit Suisse Group AG will publish and file with the US Securities and Exchange Commission (SEC) the Financial Report 3Q12, which will include additional disclosures on (i) fair value of financial instruments, (ii) loans, allowance for loan losses and credit quality, (iii) derivatives and hedging activities, (iv) investment securities, (v) guarantees and commitments, (vi) assets pledged or assigned, (vii) transfers of financial assets and variable interest entities, and (viii) tax.

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.

References herein to “CHF” are to Swiss francs.

This report on Form 6-K (including the exhibits hereto) is hereby incorporated by reference into the Registration Statement on Form F-3 (file no. 333-180300) and the Registration Statement on Form S-8 (file no. 333-101259).

The Credit Suisse Financial Release 3Q12 contains information for the three and nine months ended September 30, 2012. The Group's independent registered public accounting firm has not completed its review of the condensed consolidated financial statements (unaudited) for the three and nine months ended September 30, 2012 and the Group has not finalized its Financial Report for the period. Accordingly, such financial information is subject to completion of quarter-end procedures which may result in changes to that information.

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 within the meaning of the Private Securities Litigation Reform Act of 1995. 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 Group’s annual report on Form 20-F for the year ended December 31, 2011, 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.

Exhibits

No. Description

99.1 Credit Suisse Financial Release 3Q12

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: October 25, 2012

By:

/s/ Brady W. Dougan

Brady W. Dougan

Chief Executive Officer

By:

/s/ David R. Mathers

David R. Mathers

Chief Financial Officer

EX-99

On or about November 6, 2012, we will publish our Financial Report 3Q12 which will include additional financial statements disclosures.

Financial highlights
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Net income (CHF million)
Net income attributable to shareholders	254	788	683	(68)	(63)	1,086	2,590	(58)
Earnings per share (CHF)
Basic earnings per share	0.16	0.48	0.54	(67)	(70)	0.72	1.96	(63)
Diluted earnings per share	0.16	0.46	0.53	(65)	(70)	0.71	1.95	(64)
Return on equity (%, annualized)
Return on equity attributable to shareholders	2.9	9.2	8.7	–	–	4.2	10.7	–
Core Results (CHF million)  1
Net revenues	5,766	6,241	6,817	(8)	(15)	17,885	20,956	(15)
Provision for credit losses	41	25	84	64	(51)	100	90	11
Total operating expenses	5,366	5,105	5,697	5	(6)	16,275	17,119	(5)
Income before taxes	359	1,111	1,036	(68)	(65)	1,510	3,747	(60)
Core Results statement of operations metrics (%)  1
Cost/income ratio	93.1	81.8	83.6	–	–	91.0	81.7	–
Pre-tax income margin	6.2	17.8	15.2	–	–	8.4	17.9	–
Effective tax rate	28.1	28.0	32.0	–	–	26.2	28.5	–
Net income margin 2	4.4	12.6	10.0	–	–	6.1	12.4	–
Assets under management and net new assets (CHF billion)
Assets under management	1,250.7	1,213.1	1,151.4	3.1	8.6	1,250.7	1,151.4	8.6
Net new assets	5.3	4.4	8.0	20.5	(33.8)	4.0	42.1	(90.5)
Balance sheet statistics (CHF million)
Total assets	1,023,292	1,043,455	1,061,521	(2)	(4)	1,023,292	1,061,521	(4)
Net loans	242,456	239,164	226,447	1	7	242,456	226,447	7
Total shareholders' equity	35,682	34,774	33,519	3	6	35,682	33,519	6
Tangible shareholders' equity 3	26,798	25,831	24,889	4	8	26,798	24,889	8
Book value per share outstanding (CHF)
Total book value per share	27.60	27.10	27.86	2	(1)	27.60	27.86	(1)
Tangible book value per share 3	20.73	20.13	20.69	3	0	20.73	20.69	0
Shares outstanding (million)
Common shares issued	1,320.1	1,286.6	1,203.0	3	10	1,320.1	1,203.0	10
Treasury shares	(27.4)	(3.5)	0.0	–	–	(27.4)	0.0	–
Shares outstanding	1,292.7	1,283.1	1,203.0	1	7	1,292.7	1,203.0	7
Market capitalization
Market capitalization (CHF million)	26,309	22,207	28,872	18	(9)	26,309	28,872	(9)
Market capitalization (USD million)	27,920	23,583	31,567	18	(12)	27,920	31,567	(12)
BIS statistics (Basel II.5)  4
Risk-weighted assets (CHF million)	233,509	233,705	243,758	0	(4)	233,509	243,758	(4)
Tier 1 ratio (%)	18.5	16.5	14.3	–	–	18.5	14.3	–
Core tier 1 ratio (%)	14.7	12.5	10.0	–	–	14.7	10.0	–
Number of employees (full-time equivalents)
Number of employees	48,400	48,200	50,700	0	(5)	48,400	50,700	(5)
1    Refer to "Credit Suisse Reporting structure and Core Results" in I – Credit Suisse results – Credit Suisse for further information on Core Results.   2    Based on amounts attributable to shareholders.   3    A non-GAAP financial measure. Tangible shareholders' equity is calculated by deducting goodwill and other intangible assets from total shareholders' equity.   4    Reported under Basel II.5 since December 31, 2011. Previously reported under Basel II. Prior periods have been adjusted to conform to the current presentation. Refer to "Treasury management" in II – Treasury, risk, balance sheet and off-balance sheet for further information.

Brady W. Dougan, Chief Executive Officer (left) and Urs Rohner, Chairman of the Board of Directors.

Dear shareholders

In the third quarter of 2012, our businesses produced solid results, while at the same time improving the efficiency of their operations. Adjusting for accounting-driven fair value losses on own debt of CHF 1.0 billion due to the tightening of our own credit spreads and other significant non-operating items, we delivered underlying* core pre-tax income of CHF 1,203 million, underlying* net income attributable to shareholders of CHF 891 million and underlying* return on equity of 9.6% for the third quarter of 2012. Without these adjustments, we reported core pre-tax income of CHF 359 million, net income attributable to shareholders of CHF 254 million and a return on equity of 2.9% for the third quarter of 2012.

For the first nine months of 2012, we delivered underlying* core pre-tax income of CHF 3,835 million, underlying* net income attributable to shareholders of CHF 2,761 million and underlying* return on equity of 10.4%, adjusting for fair value losses on own debt of CHF 2.6 billion and other significant non-operating items. Our reported core pre-tax income was CHF 1,510 million, net income attributable to shareholders was CHF 1,086 million and return on equity was 4.2% for the first nine months of 2012.

We are successfully executing on the measures we began last year, while maintaining strong momentum with our clients. We have realigned our business to better meet the demands of a changed regulatory and market environment and, in doing so, have substantially reduced risks. At the same time, we have significantly cut costs and improved efficiencies across the bank. Additionally, we have further strengthened our capital base and have improved our balance sheet structure to meet future regulatory requirements.

Performance of our businesses in the third quarter

In Private Banking in the third quarter of 2012, we reported net revenues of CHF 2,591 million. This is a 4% decline compared to the previous quarter. Total operating expenses for Private Banking were stable compared to the second quarter of 2012, as lower compensation and benefits were offset by higher general and administrative expenses, primarily driven by regulatory costs. Private Banking results reflect margin pressure in an operating environment characterized by low levels of client activity and a rise in the cost of doing business, partially mitigated by the continuing implementation of our strategic initiatives.

In Investment Banking in the third quarter of 2012, we reported net revenues of CHF 3,296 million, up 13% from the previous quarter due to strong results in both fixed income sales and trading and underwriting and advisory. As a result of our refined strategy, fixed income results reflected a more balanced business portfolio with reduced revenue volatility, including a significant decline in inventory levels. Investment Banking results benefited from the expense reduction measures implemented over the past 15 months, improving the pre-tax margin for the first nine months of 2012 to 18%, compared to 10% in the prior-year period.

In Asset Management in the third quarter of 2012, we reported net revenues of CHF 607 million, up 10% from the previous quarter. This result included a gain of CHF 140 million on the sale of our remaining ownership interest in Aberdeen Asset Management. Total operating expenses in Asset Management were 8% lower than in the prior quarter, driven by both lower compensation and benefits and lower general and administrative expenses.

Cost savings and capital measures well on track

While investing in our client franchise, we are continuing to significantly reduce expenses. Cost savings for the first nine months of 2012 were CHF 2.0 billion compared to an adjusted* run rate for the first half of 2011 on an annualized basis and we expect to exceed CHF 3.0 billion in total cost savings in the full year 2013. Furthermore, we are now targeting annual savings in excess of CHF 3.5 billion during 2014 and savings of CHF 4.0 billion by the end of 2015, compared to the adjusted* annualized run rate for the first half of 2011. These targeted expense reductions provide us with additional operating flexibility, which is crucial to our success, especially in light of the increasing cost of doing business in a changing regulatory environment.

The implementation of the capital actions that we announced in July 2012 is well underway. By the end of the third quarter of 2012, these capital measures generated CHF 12.8 billion of our end-2012 target of CHF 15.3 billion and our Look-through Swiss Core Capital ratio** stood at 8.2%. We are continuing to execute on the balance of these measures and estimate our end-2012 Look-through Swiss Core Capital ratio** to be around 9.3% on a pro-forma basis.

Furthermore, while we have already reduced our Basel III risk-weighted assets in Investment Banking by 31% to USD 204 billion since the third quarter of 2011 in preparation for the implementation of the Basel III regime in Switzerland, we intend to reduce our risk-weighted assets in Investment Banking by a further 10% to USD 180 billion by the end of 2013. Combined with our capital measures, this should ensure that we achieve our target and the Swiss end-2018 requirement of a Swiss Core Capital ratio** of 10% by mid-2013.

Additionally, we intend to further reduce our balance sheet by CHF 130 billion or 13% of total assets by the end of 2013 on a foreign-exchange neutral basis. We expect this reduction to have a limited impact on our earnings, while ensuring that our leverage ratio is in a strong position. With a FINMA leverage ratio of 5.2% at the end of the third quarter 2012, Credit Suisse is already well in excess of current requirements.

Our strong capital position and funding structure, combined with our high-quality balance sheet affirm our position as one of the strongest global banks.

Confirming our targets

Year to date, we have generated an underlying* return on equity of 10.4% in what we consider to be a very volatile environment with low levels of client activity. We are confident that the full implementation of the strategic, capital and cost-saving measures that we began in 2011 will enable us to reach our target return on equity of 15% or more over the cycle as well as the other stated targets for the bank.

Sincerely

Urs Rohner             Brady W. Dougan

October 2012

* Underlying and adjusted results are non-GAAP financial measures. The table below includes a reconciliation of certain of these measures. For further information on the calculation of underlying and adjusted measures, including reconciliations for historical periods and the cost run rate on an adjusted annualized basis, see the 3Q12 Results Presentation Slides.

**The definitions of regulatory capital and capital ratios refer to the regulations under the Swiss “Too Big to Fail” regime as determined by FINMA. Ratio calculations based on these capital definitions use projected Basel III year-end 2012 risk-weighted assets. The expected year-end 2012 ratios are based on a pro-forma calculation assuming successful completion of the capital measures announced in July 2012 and using Bloomberg consensus net income estimates (adjusted for actual 9M12 net income and fair value losses on own debt in 3Q12) and our Basel III risk-weighted assets estimates. As Basel III will not be implemented before January 1, 2013, our Basel III risk-weighted assets and capital were calculated in accordance with the currently proposed requirements and our current interpretation of such requirements, including relevant assumptions. Changes in the actual implementation of Basel III or any of our assumptions or estimates would result in different numbers from those used herein.

	Core pre-tax income		Net income attributable to shareholders		Return on equity (%)
end of	3Q12	9M12	3Q12	9M12	3Q12	9M12
Overview of significant items (CHF million)
Reported	359	1,510	254	1,086	2.9	4.2
Fair value losses from movement in own credit spreads	1,048	2,563	865	1,957	–	–
Realignment costs	144	395	100	287	–	–
Gain on sale of ownership interest in Aberdeen Asset Management	(140)	(384)	(122)	(326)	–	–
Gain on sale of non-core business from the integration of Clariden Leu	0	(41)	0	(37)	–	–
Gain on sale of real estate	(382)	(382)	(325)	(325)	–	–
Impairment of Asset Management Finance LLC	38	38	23	23	–	–
Significant Investment Banking litigation provisions	136	136	96	96	–	–
Underlying results	1,203	3,835	891	2,761	9.6	10.4

On or about November 6, 2012, we will publish and file with the SEC our Financial Report 3Q12, which will include additional disclosures on:

– fair value of financial instruments;

– loans, allowance for loan losses and credit quality;

– derivatives and hedging activities;

– investment securities;

– guarantees and commitments;

– assets pledged or assigned;

– transfers of financial assets and variable interest entities; and

– tax.

Credit Suisse at a glance
Credit Suisse results
Operating environment
Credit Suisse
Core Results
Private Banking
Wealth Management Clients
Corporate & Institutional Clients
Investment Banking
Asset Management
Assets under management
Treasury, risk, balance sheet and off-balance sheet
Treasury management
Risk management
Balance sheet and off-balance sheet
Condensed consolidated financial statements – unaudited
Condensed consolidated financial statements – unaudited
Notes to the condensed consolidated financial statements – unaudited
Note 1 Summary of significant accounting policies
Note 2 Recently issued accounting standards
Note 3 Business developments
Note 4 Discontinued operations
Note 5 Segment information
Note 6 Net interest income
Note 7 Commissions and fees
Note 8 Trading revenues
Note 9 Other revenues
Note 10 Provision for credit losses
Note 11 Compensation and benefits
Note 12 General and administrative expenses
Note 13 Earnings per share
Note 14 Trading assets and liabilities
Note 15 Investment securities
Note 16 Loans, allowance for loan losses and credit quality
Note 17 Other assets and other liabilities
Note 18 Long-term debt
Note 19 Accumulated other comprehensive income
Note 20 Tax
Note 21 Employee deferred compensation
Note 22 Pension and other post-retirement benefits
Note 23 Derivatives and hedging activities
Note 24 Guarantees and commitments
Note 25 Transfers of financial assets and variable interest entities
Note 26 Financial instruments
Note 27 Assets pledged or assigned
Note 28 Litigation
Note 29 Subsidiary guarantee information
List of abbreviations
Investor information
Financial calendar and contacts
Cautionary statement regarding forward-looking information

For purposes of this report, unless the context otherwise requires, the terms “Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group AG and its consolidated subsidiaries. The business of Credit Suisse AG, the Swiss bank subsidiary of the Group, is substantially similar to the Group, and we use these terms to refer to both when the subject is the same or substantially similar. We use the term “the Bank” when we are only referring to Credit Suisse AG, the Swiss bank subsidiary of the Group, and its consolidated subsidiaries.

Abbreviations are explained in the List of abbreviations in the back of this report.

Publications referenced in this report, whether via website links or otherwise, are not incorporated into this report.

In various tables, use of “–” indicates not meaningful or not applicable.

Credit Suisse at a glance

Credit Suisse

As one of the world’s leading financial services providers, we are committed to delivering our combined financial experience and expertise to corporate, institutional and government clients and to high-net-worth individuals worldwide, as well as to private clients in Switzerland. Founded in 1856, we have a truly global reach today, with operations in over 50 countries and 48,400 employees from approximately 100 different nations. This worldwide reach enables us to generate a geographically balanced stream of revenues and net new assets and allows us to capture growth opportunities wherever they are. We serve our diverse clients through our three divisions, which cooperate closely to provide holistic financial solutions based on innovative products and specially tailored advice.

Private Banking

Private Banking offers comprehensive advice and a wide range of financial solutions to private, corporate and institutional clients. The Private Banking division comprises the Wealth Management Clients and Corporate & Institutional Clients businesses. In Wealth Management Clients we serve ultra-high-net-worth and high-net-worth individuals around the globe and private clients in Switzerland. Our Corporate & Institutional Clients business serves the needs of corporations and institutional clients, mainly in Switzerland.

Investment Banking

Investment Banking provides a broad range of financial products and services, including global securities sales, trading and execution, prime brokerage and capital raising services, corporate advisory and comprehensive investment research, with a focus on businesses that are client-driven, flow-based and capital-efficient. Clients include corporations, governments, institutional investors, including hedge funds, and private individuals around the world. Credit Suisse delivers its investment banking capabilities via regional and local teams based in major global financial centers. Strongly anchored in Credit Suisse’s integrated model, Investment Banking works closely with the Private Banking and Asset Management divisions to provide clients with customized financial solutions.

Asset Management

Asset Management offers a wide range of investment products and solutions across asset classes, for all investment styles. The division manages global and regional portfolios, separate accounts, mutual funds and other investment vehicles for governments, institutions, corporations and individuals worldwide. Asset Management focuses on becoming a global leader in multi-asset class solutions as well as in alternative investments. To deliver the bank’s best investment performance, Asset Management operates as a global integrated network in close collaboration with the Private Banking and Investment Banking divisions.

Credit Suisse results

Operating environment

Credit Suisse

Core Results (including Overview of results)

Private Banking

Investment Banking

Asset Management

Assets under management

Operating environment

Global economic growth slowed in 3Q12, with accelerated GDP contraction in some peripheral European countries. Central banks continued to maintain loose monetary policies with the European Central Bank announcing it stood ready to buy short-dated sovereign bonds, and the US Federal Reserve launching another round of quantitative easing. Equity markets ended the quarter higher, and the US dollar weakened against major currencies, including the Swiss franc.

Economic environment

Global gross domestic product (GDP) growth slowed further in 3Q12, as market strains persisted with weak consumer confidence and business sentiment amidst continued high unemployment rates, weak consumer spending and a decline in global manufacturing indices. While growth in the US continued, GDP measures contracted in the eurozone. China also experienced a further growth slowdown, as did most other emerging markets. Inflation in 3Q12 remained at low levels for most developed countries.

In an effort to strengthen and stimulate their economies, several central banks implemented additional measures for expansionary monetary policies during the quarter. The US Federal Reserve (Fed) reacted to the slow improvement in the US labor market by extending its pledge to keep short-term interest rates at low levels until mid-2015, noting that monetary policy will remain highly accommodative even after the recovery strengthens. The Fed also announced it will purchase significant amounts of mortgage-backed securities until there is substantial labor market improvement. The Bank of England also voted to extend its asset purchase program and stated it would hold interest rates steady. China cut benchmark interest rates during the quarter after reducing their rates in June for the first time since 2008, and South Korea and Brazil also lowered policy rates. The European Central Bank (ECB) lowered its benchmark interest deposit rates in addition to announcing plans to expand its bond buying program to counter financial market speculation about the weakness of the eurozone framework, stating that it could potentially buy an unlimited amount of eurozone sovereign debt with maturities between one and three years. At the time, this announcement resulted in a marked drop in the bond yields of certain troubled eurozone sovereigns.

Important steps towards addressing the eurozone sovereign debt crisis were made during the quarter. The German constitutional court endorsed the creation of the European Stability Mechanism (ESM), provided that Germany's contribution to the framework could only be increased under limited circumstances. Talks between Greece and its European creditors regarding the disbursal of the next tranche of rescue funds continued after Greek elections in the spring resulted in a delay in the government's austerity and reform measures.

Global equity prices ended higher in 3Q12 on the back of central bank announcements and increased risk appetite. The broader market made significant gains with the S&P 500 climbing 5.8% in 3Q12 to levels not seen since 2007. However, trading volumes on most stock exchanges remained subdued. Equity market volatility, as indicated by the Chicago Board Options Exchange Market Volatility Index (VIX), remained low during the quarter, well below historical averages (refer to the charts "Equity markets").

In fixed income the most significant euro- and US dollar-denominated bond indices ended with positive total returns. European high yield bonds and US dollar emerging market bonds posted the strongest returns. European long-dated sovereign and government-related bonds as well as corporates with a strong European peripheral exposure also performed well, supported by a significant decline in Italian and Spanish government bond yields. In the US domestic market, financials posted the best returns among investment grade sectors. US inflation-linked bonds outperformed nominal US treasuries, as the announcement of further quantitative easing by the Fed increased US inflation expectations.

The US dollar continued to strengthen against major currencies in the first half of 3Q12 on concerns over eurozone debt and risk aversion. However, the announced measures by the ECB eased the risk premium on the euro, and the actions taken by the Fed weakened the US dollar against most major currencies by the end of the quarter. The minimum exchange rate for the Swiss franc imposed by the Swiss National Bank (SNB) against the euro remained around 1.20.

Following a sharp price decline in 2Q12, commodity markets rebounded during the third quarter. Market-specific events such as renewed geopolitical risks in the Middle East and the severe drought in the US caused some sectors to strengthen. Gold prices increased by more than 10% in response to various central bank announcements of continued monetary easing. Oil prices recovered from their June lows, and Credit Suisse Commodity Benchmark gained almost 12% over the quarter.

Sector environment

European bank stocks outperformed the broader equity market as measured by the MSCI World Index (refer to the charts "Equity markets"). In mid-September the ECB presented its plan to establish a single supervisory mechanism for banks, which was seen as an important step towards a possible European banking union, which, combined with the European Financial Stability Facility and ESM rescue package, led to a stabilization in European bank share prices. Given economic and regulatory uncertainty, many banks sought to maintain solid liquidity buffers, consequently holding significant amounts of cash with central banks. Banks continued to adjust and develop their business models, driven by the need to achieve cost efficiencies and the impacts of regulatory developments.

The private banking sector experienced continued low client activity with a significant portion of client assets held in cash. The low interest rate environment continued to negatively impact this sector. Ongoing discussions regarding the Swiss offshore banking model continued to influence the domestic business environment, and concerns about the real estate market overheating in certain areas of Switzerland remained pronounced.

In the investment banking sector, global announced and completed mergers and acquisitions (M&A) volumes were lower quarter on quarter and year on year. Global equity underwriting volumes increased from 2Q12, driven primarily by higher follow-on and convertible issuances. Global debt underwriting volumes, including investment grade and high yield issuances, also increased quarter on quarter and year on year. Global equity trading volumes decreased from 2Q12 and 3Q11, amid increased market uncertainty. Fixed income trading volumes were stable quarter on quarter, but declined year on year, particularly in treasuries, federal agency and corporate bonds, while mortgage-backed securities volumes increased from prior year levels.

In the asset management sector, the Dow Jones Credit Suisse Hedge Fund Index gained 3.3% as of the end 3Q12, with the largest gains in fixed income arbitrage and long/short equity, which was partly offset by a significant decrease in dedicated short bias. The hedge fund environment was favorable with lower market volatility driven by positive developments in the eurozone debt crisis. In the fixed income sector, recent improvements in some US economic data and the anticipation of bond purchases by the ECB improved the total return forecasts for euro and US dollar short-dated securities portfolios. The third quarter saw inflows into conventional bond and money market funds and exchange-traded funds (ETFs).

Market volumes (growth in %)
	Global		Europe
end of 3Q12	QoQ	YoY	QoQ	YoY
Equity trading volume 1	(16)	(30)	(19)	(32)
Announced mergers and acquisitions 2	(17)	(12)	(28)	(19)
Completed mergers and acquisitions 2	(23)	(20)	(16)	(35)
Equity underwriting 2	18	41	71	45
Debt underwriting 2	36	108	22	78
Syndicated lending - investment grade 2, 3	(26)	(24)	–	–
1    London Stock Exchange, Borsa Italiana, Deutsche Börse, BME and Euronext. Global also includes New York Stock Exchange and NASDAQ.   2    Dealogic   3    9M12 vs 9M11

Credit Suisse

In 3Q12, we recorded net income attributable to shareholders of CHF 254 million. Diluted earnings per share were CHF 0.16.

Results
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Statements of operations (CHF million)
Net revenues	5,844	6,275	6,689	(7)	(13)	18,166	21,737	(16)
Provision for credit losses	41	25	84	64	(51)	100	90	11
Compensation and benefits	3,094	3,005	3,067	3	1	9,810	10,192	(4)
General and administrative expenses	1,862	1,673	2,209	11	(16)	5,188	5,493	(6)
Commission expenses	427	441	485	(3)	(12)	1,319	1,512	(13)
Total other operating expenses	2,289	2,114	2,694	8	(15)	6,507	7,005	(7)
Total operating expenses	5,383	5,119	5,761	5	(7)	16,317	17,197	(5)
Income before taxes	420	1,131	844	(63)	(50)	1,749	4,450	(61)
Income tax expense	101	311	332	(68)	(70)	396	1,068	(63)
Net income	319	820	512	(61)	(38)	1,353	3,382	(60)
Net income attributable to noncontrolling interests	65	32	(171)	103	–	267	792	(66)
Net income attributable to shareholders	254	788	683	(68)	(63)	1,086	2,590	(58)
Earnings per share (CHF)
Basic earnings per share	0.16	0.48	0.54	(67)	(70)	0.72	1.96	(63)
Diluted earnings per share	0.16	0.46	0.53	(65)	(70)	0.71	1.95	(64)
Return on equity (%, annualized)
Return on equity attributable to shareholders	2.9	9.2	8.7	–	–	4.2	10.7	–
Return on tangible equity attributable to shareholders 1	3.8	12.5	11.8	–	–	5.7	14.4	–
Number of employees (full-time equivalents)
Number of employees	48,400	48,200	50,700	0	(5)	48,400	50,700	(5)
1    Based on tangible shareholders' equity attributable to shareholders, a non-GAAP financial measure, which is calculated by deducting goodwill and other intangible assets from total shareholders' equity attributable to shareholders. Management believes that the return on tangible shareholders' equity attributable to shareholders is meaningful as it allows consistent measurement of the performance of businesses without regard to whether the businesses were acquired.

Credit Suisse and Core Results
	Core Results			Noncontrolling interests without SEI			Credit Suisse
in	3Q12	2Q12	3Q11	3Q12	2Q12	3Q11	3Q12	2Q12	3Q11
Statements of operations (CHF million)
Net revenues	5,766	6,241	6,817	78	34	(128)	5,844	6,275	6,689
Provision for credit losses	41	25	84	0	0	0	41	25	84
Compensation and benefits	3,082	3,000	3,010	12	5	57	3,094	3,005	3,067
General and administrative expenses	1,857	1,664	2,202	5	9	7	1,862	1,673	2,209
Commission expenses	427	441	485	0	0	0	427	441	485
Total other operating expenses	2,284	2,105	2,687	5	9	7	2,289	2,114	2,694
Total operating expenses	5,366	5,105	5,697	17	14	64	5,383	5,119	5,761
Income before taxes	359	1,111	1,036	61	20	(192)	420	1,131	844
Income tax expense	101	311	332	0	0	0	101	311	332
Net income	258	800	704	61	20	(192)	319	820	512
Net income attributable to noncontrolling interests	4	12	21	61	20	(192)	65	32	(171)
Net income attributable to shareholders	254	788	683	–	–	–	254	788	683
Statement of operations metrics (%)
Cost/income ratio	93.1	81.8	83.6	–	–	–	92.1	81.6	86.1
Pre-tax income margin	6.2	17.8	15.2	–	–	–	7.2	18.0	12.6
Effective tax rate	28.1	28.0	32.0	–	–	–	24.0	27.5	39.3
Net income margin 1	4.4	12.6	10.0	–	–	–	4.3	12.6	10.2
1    Based on amounts attributable to shareholders.

Core Results

In 3Q12, we recorded net income attributable to shareholders of CHF 254 million. Net revenues were CHF 5,766 million and total operating expenses were CHF 5,366 million.

Results in 3Q12 included fair value losses from movements in own credit spreads of CHF 1,048 million before tax, compared to fair value gains of CHF 39 million in 2Q12 and CHF 1,824 million in 3Q11. Our results also reflected gains of CHF 382 million before tax from the sale of real estate and gains of CHF 140 million before tax from the sale of our remaining ownership interest in Aberdeen Asset Management.

We recorded net new assets of CHF 5.3 billion, with net new assets of CHF 5.2 billion in Private Banking and net asset outflows of CHF 0.5 billion in Asset Management.

We made significant progress in the implementation of the capital measures we announced on July 18, 2012. Our Basel II.5 tier 1 ratio was 18.5% as of the end of 3Q12 compared to 16.5% as of the end of 2Q12. Our core tier 1 ratio improved to 14.7% from 12.5% as of the end of 2Q12.

We are initiating a further 10% reduction in Investment Banking risk-weighted assets to USD 180 billion and are targeting a balance sheet reduction of CHF 130 billion for the Group to under CHF 900 billion to be achieved by year-end 2013 on a foreign exchange neutral basis. As we expect to exceed our previously announced cost savings, we increased our target by a further CHF 0.5 billion of savings to be achieved during 2014 and a further CHF 0.5 billion during 2015, thereby targeting a total of CHF 4.0 billion of reductions compared to the annualized 6M11 expense run rate.

Core Results
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Statements of operations (CHF million)
Net interest income	1,707	1,633	1,634	5	4	5,201	4,744	10
Commissions and fees	3,231	3,137	3,071	3	5	9,547	10,219	(7)
Trading revenues	(11)	1,147	1,826	–	–	1,316	4,957	(73)
Other revenues	839	324	286	159	193	1,821	1,036	76
Net revenues	5,766	6,241	6,817	(8)	(15)	17,885	20,956	(15)
Provision for credit losses	41	25	84	64	(51)	100	90	11
Compensation and benefits	3,082	3,000	3,010	3	2	9,789	10,128	(3)
General and administrative expenses	1,857	1,664	2,202	12	(16)	5,167	5,479	(6)
Commission expenses	427	441	485	(3)	(12)	1,319	1,512	(13)
Total other operating expenses	2,284	2,105	2,687	9	(15)	6,486	6,991	(7)
Total operating expenses	5,366	5,105	5,697	5	(6)	16,275	17,119	(5)
Income before taxes	359	1,111	1,036	(68)	(65)	1,510	3,747	(60)
Income tax expense	101	311	332	(68)	(70)	396	1,068	(63)
Net income	258	800	704	(68)	(63)	1,114	2,679	(58)
Net income attributable to noncontrolling interests	4	12	21	(67)	(81)	28	89	(69)
Net income attributable to shareholders	254	788	683	(68)	(63)	1,086	2,590	(58)
Statement of operations metrics (%)
Cost/income ratio	93.1	81.8	83.6	–	–	91.0	81.7	–
Pre-tax income margin	6.2	17.8	15.2	–	–	8.4	17.9	–
Effective tax rate	28.1	28.0	32.0	–	–	26.2	28.5	–
Net income margin 1	4.4	12.6	10.0	–	–	6.1	12.4	–
Number of employees (full-time equivalents)
Number of employees	48,400	48,200	50,700	0	(5)	48,400	50,700	(5)
1    Based on amounts attributable to shareholders.

Core Results reporting by division
	in			% change		in		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Net revenues (CHF million)
Wealth Management Clients	2,117	2,217	2,126	(5)	0	6,461	6,681	(3)
Corporate & Institutional Clients	474	487	474	(3)	0	1,438	1,439	0
Private Banking	2,591	2,704	2,600	(4)	0	7,899	8,120	(3)
Investment Banking	3,296	2,909	1,981	13	66	10,364	9,885	5
Asset Management	607	550	493	10	23	1,838	1,767	4
Corporate Center	(728)	78	1,743	–	–	(2,216)	1,184	–
Net revenues	5,766	6,241	6,817	(8)	(15)	17,885	20,956	(15)
Provision for credit losses (CHF million)
Wealth Management Clients	26	28	20	(7)	30	75	40	88
Corporate & Institutional Clients	10	11	5	(9)	100	40	(5)	–
Private Banking	36	39	25	(8)	44	115	35	229
Investment Banking	5	(14)	59	–	(92)	(15)	55	–
Provision for credit losses	41	25	84	64	(51)	100	90	11
Total operating expenses (CHF million)
Wealth Management Clients	1,608	1,638	2,115	(2)	(24)	4,966	5,548	(10)
Corporate & Institutional Clients	258	252	253	2	2	748	734	2
Private Banking	1,866	1,890	2,368	(1)	(21)	5,714	6,282	(9)
Investment Banking	2,783	2,540	2,642	10	5	8,490	8,859	(4)
Asset Management	385	417	396	(8)	(3)	1,229	1,277	(4)
Corporate Center	332	258	291	29	14	842	701	20
Total operating expenses	5,366	5,105	5,697	5	(6)	16,275	17,119	(5)
Income/(loss) before taxes (CHF million)
Wealth Management Clients	483	551	(9)	(12)	–	1,420	1,093	30
Corporate & Institutional Clients	206	224	216	(8)	(5)	650	710	(8)
Private Banking	689	775	207	(11)	233	2,070	1,803	15
Investment Banking	508	383	(720)	33	–	1,889	971	95
Asset Management	222	133	97	67	129	609	490	24
Corporate Center	(1,060)	(180)	1,452	489	–	(3,058)	483	–
Income before taxes	359	1,111	1,036	(68)	(65)	1,510	3,747	(60)

Core Results reporting by region
	in			% change		in		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Net revenues (CHF million)
Switzerland	1,794	1,933	1,874	(7)	(4)	5,655	5,832	(3)
EMEA	1,670	1,705	1,534	(2)	9	5,406	5,307	2
Americas	2,540	2,000	1,120	27	127	7,158	6,517	10
Asia Pacific	490	525	546	(7)	(10)	1,882	2,116	(11)
Corporate Center	(728)	78	1,743	–	–	(2,216)	1,184	–
Net revenues	5,766	6,241	6,817	(8)	(15)	17,885	20,956	(15)
Income/(loss) before taxes (CHF million)
Switzerland	562	738	604	(24)	(7)	1,967	1,971	0
EMEA	270	227	(159)	19	–	888	286	210
Americas	747	419	(774)	78	–	1,785	866	106
Asia Pacific	(160)	(93)	(87)	72	84	(72)	141	–
Corporate Center	(1,060)	(180)	1,452	489	–	(3,058)	483	–
Income before taxes	359	1,111	1,036	(68)	(65)	1,510	3,747	(60)
A significant portion of our business requires inter-regional coordination in order to facilitate the needs of our clients. The methodology for allocating our results by region is dependent on management judgment. For Private Banking, results are allocated based on the management reporting structure of our relationship managers and the region where the transaction is recorded. For Investment Banking, trading results are allocated based on where the risk is primarily managed and fee-based results are allocated where the client is domiciled. For Asset Management, results are allocated based on the location of the investment advisors and sales teams.

Impact from movements in own credit spreads

Our Core Results revenues are impacted by changes in credit spreads on fair-valued Credit Suisse long-term vanilla debt and debit valuation adjustments (DVA) relating to certain structured notes liabilities carried at fair value. For segment reporting purposes through the end of 2011, the cumulative fair value gains of CHF 1.5 billion on Credit Suisse long-term vanilla debt as of the opening 1Q10 balance sheet was charged to the segments on a straight-line amortization basis, and the difference between this amortization and the fair valuation on this Credit Suisse debt from changes in credit spreads was included in the Corporate Center.

Beginning in 1Q12, we fully reflect the fair value impact from movements in credit spreads on our long-term vanilla debt and DVA on certain structured notes liabilities in the Corporate Center and discontinued the amortization in the segments of the past fair value gains on long-term vanilla debt. DVA on certain structured notes liabilities was previously recorded in the Investment Banking segment and is now recorded in the Corporate Center in order to aggregate all credit-spread impacts on our funding instruments and to reflect that these impacts are driven by the creditworthiness of the Group rather than our Investment Banking segment or the issuer. Prior periods have been reclassified to conform to the current presentation and such reclassifications had no impact on the Group’s net income/(loss) or total shareholders’ equity.

Our Core Results are also impacted by fair valuation gains/(losses) on stand-alone derivatives relating to certain of our funding liabilities. These fair valuation gains/(losses) on the stand-alone derivatives are recorded in the Corporate Center, reflect the volatility of cross-currency swaps and yield curve volatility and, over the life of the derivatives, will result in no net gains/(losses).

in	3Q12	2Q12	3Q11	9M12	9M11
Net income/(loss) attributable to shareholders, excluding impact from movements in own credit spreads (CHF million)	1,119	770	(598)	3,043	1,771
Fair value gains/(losses) from movements in own credit spreads	(1,048)	39	1,824	(2,563)	1,225
Of which fair value gains/(losses) on own long-term vanilla debt	(681)	109	1,277	(1,466)	1,022
Of which fair value gains/(losses) on debit valuation adjustments on structured notes	(338)	(18)	538	(838)	515
Of which fair value gains/(losses) on stand-alone derivatives	(29)	(52)	9	(259)	(312)
Tax expense/(benefit)	(183)	21	543	(606)	406
Net income attributable to shareholders	254	788	683	1,086	2,590
Regulatory capital excludes cumulative fair value gains/(losses) related to own long-term vanilla debt and structured notes, net of tax. Refer to “Treasury management” in II – Treasury, risk, balance sheet and off-balance sheet for further information.

Results overview

Certain reclassifications have been made to prior periods to conform to the current presentation.

> Refer to “Format of presentation and changes in reporting” in Information and developments for further information.

In Private Banking, net revenues of CHF 2,591 million were stable compared to 3Q11, with lower transaction-based revenues, higher net interest income and stable recurring commissions and fees. The results reflected margin pressure in an adverse operating environment, partially mitigated by the continuing implementation of our strategic initiatives. Transaction-based revenues were 11% lower, driven by lower revenues across all major revenue categories, reflecting significantly lower client activity and lower transaction volumes. Net interest income increased 6%, reflecting higher average deposit and loan volumes. Recurring commissions and fees were stable as higher investment account and services fees were offset by lower investment product management fees and lower discretionary mandate management fees.

In Investment Banking, net revenues of CHF 3,296 million were up 66% compared to 3Q11. Results demonstrated strong franchise momentum and the continued execution of our refined strategy to increase operating and capital efficiencies. Fixed income sales and trading revenues were strong, reflecting solid client flow and favorable trading conditions. Relative to 3Q11, results were significantly higher, driven by a substantial increase in securitized products and global credit products revenues due to a more favorable market environment with greater client demand for higher yielding instruments, and improved results for emerging markets. We are benefitting from a more balanced business portfolio with reduced revenue volatility, reflecting the significant decline in inventory levels. Equity sales and trading revenues were resilient and increased relative to 3Q11, reflecting more favorable market conditions, with stronger revenues across equities arbitrage trading, convertibles and fund-linked products. Underwriting and advisory results were higher in the quarter relative to 2Q12 and 3Q11, driven by strong underwriting revenues due to robust issuance volumes and higher M&A, advisory and private placement fees.

In Asset Management, net revenues of CHF 607 million were up 23% compared to 3Q11. In July 2012, we sold our remaining ownership interest in Aberdeen Asset Management, resulting in a gain of CHF 140 million in 3Q12 and total gains of CHF 384 million in 2012, improving our capital position. Equity participations and other gains and losses also included an impairment of CHF 38 million related to Asset Management Finance LLC (AMF). Investment-related gains of CHF 101 million were significantly higher than the CHF 27 million gain in 2Q12 and the CHF 17 million loss in 3Q11, with gains in the energy and transport sectors and in hedge fund investments. Compared to 3Q11, fee-based revenues of CHF 438 million were down 14%, with lower carried interest on realized private equity gains and lower equity participations income. Our fee-based margin was 48 basis points compared to 56 basis points in 3Q11.

> Refer to “Private Banking”, “Investment Banking” and “Asset Management” for further information.

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. In addition, the Corporate Center includes consolidation and elimination adjustments required to eliminate intercompany revenues and expenses. In 3Q12, losses before taxes were CHF 1,060 million, including fair value losses on our long-term vanilla debt of CHF 681 million, fair value losses on stand-alone derivatives of CHF 29 million and DVA losses on certain structured notes liabilities of CHF 338 million, resulting in overall losses on such items of CHF 1,048 million in the quarter. The fair value losses on own vanilla debt reflected the narrowing of credit spreads on senior and subordinated debt across most currencies. 3Q12 results also included gains of CHF 382 million from the sale of real estate, CHF 104 million of costs recorded as Investment Banking revenues relating to the capital measures announced in July 2012 and business realignment costs of CHF 144 million, consisting primarily of severance and other compensation expenses relating to the Group-wide cost efficiency initiatives.

> Refer to “Impact from movements in own credit spreads” for further information.

Provision for credit losses were net provisions of CHF 41 million in 3Q12, with net provisions of CHF 36 million in Private Banking and CHF 5 million in Investment Banking.

Total operating expenses of CHF 5,366 million were down 6% compared to 3Q11, primarily reflecting 16% lower general and administrative expenses. The decrease in general and administrative expenses reflected litigation provisions of CHF 478 million in Private Banking in 3Q11. The lower operating expenses also reflected our expense reduction initiative. Compensation and benefits were CHF 3,082 million, up 2% compared to 3Q11.

An income tax expense of CHF 101 million in 3Q12 mainly reflected the impact of the geographical mix of results, the re-assessment of deferred tax assets and related valuation allowances that led to increases of net deferred tax assets in the US, partially offset by an increase in the valuation allowances against deferred tax assets in the UK. In addition, the income tax expense was negatively influenced by the reduction of deferred tax asset caused by the impact of the change in UK corporation tax from 25% to 23% enacted in 3Q12.

Deferred tax assets on net operating losses decreased CHF 1,396 million to CHF 2,145 million during 3Q12. The decrease in deferred tax assets on net operating losses primarily related to taxable gains on transfers of assets within the consolidated Group for which associated tax charges have been deferred as other assets in accordance with Accounting Standards Codification (ASC) 810-10-45-8 (Consolidation – other presentation matters, formerly Accounting Research Bulletin (ARB) 51). The deferral will be amortized over a period of up to 15 years in line with ASC 810-10-45-8 principles and will be matched by future tax deductions. In addition, the impact of the UK corporation tax reduction and foreign exchange translation losses further reduced the net deferred tax assets. The decrease was partially offset by increases in net deferred tax assets as a result of the re-assessment of deferred tax assets and related valuation allowances in the UK and US. Overall, net deferred tax assets decreased by CHF 1,591 million to CHF 7,034 million during 3Q12. The Core Results effective tax rate was 28.1% in 3Q12, compared to 28.0% in 2Q12.

> Refer to “Note 20 – Tax” in III – Condensed consolidated financial statements – unaudited for further information.

Assets under management were CHF 1,250.7 billion, up CHF 37.6 billion, or 3.1% compared to the end of 2Q12, mainly reflecting positive market performance and net new assets. Private Banking recorded net new assets of CHF 5.2 billion in 3Q12, including CHF 5.1 billion from Wealth Management Clients, with inflows across all regions, particularly from emerging markets and from its ultra-high-net-worth individual (UHNWI) client segment. Asset management recorded net asset outflows of CHF 0.5 billion in 3Q12, with inflows in alternative investments, more than offset by outflows in traditional investments and diversified strategies.

Overview of results
	Private Banking			Investment Banking			Asset Management			Corporate Center						Core Results			1	Noncontrolling Interests without SEI			Credit Suisse
in / end of period	3Q12	2Q12	3Q11	3Q12	2Q12	3Q11	3Q12	2Q12	3Q11	3Q12		2Q12		3Q11		3Q12	2Q12	3Q11		3Q12	2Q12	3Q11	3Q12	2Q12	3Q11
Statements of operations (CHF million)
Net revenues	2,591	2,704	2,600	3,296	2,909	1,981	607	550	493	(728)		78		1,743		5,766	6,241	6,817		78	34	(128)	5,844	6,275	6,689
Provision for credit losses	36	39	25	5	(14)	59	0	0	0	0		0		0		41	25	84		0	0	0	41	25	84
Compensation and benefits	1,049	1,107	1,092	1,520	1,457	1,463	237	256	228	276		180		227		3,082	3,000	3,010		12	5	57	3,094	3,005	3,067
General and administrative expenses	662	635	1,129	1,027	839	898	115	121	131	53		69		44		1,857	1,664	2,202		5	9	7	1,862	1,673	2,209
Commission expenses	155	148	147	236	244	281	33	40	37	3		9		20		427	441	485		0	0	0	427	441	485
Total other operating expenses	817	783	1,276	1,263	1,083	1,179	148	161	168	56		78		64		2,284	2,105	2,687		5	9	7	2,289	2,114	2,694
Total operating expenses	1,866	1,890	2,368	2,783	2,540	2,642	385	417	396	332		258		291		5,366	5,105	5,697		17	14	64	5,383	5,119	5,761
Income/(loss) before taxes	689	775	207	508	383	(720)	222	133	97	(1,060)		(180)		1,452		359	1,111	1,036		61	20	(192)	420	1,131	844
Income tax expense	–	–	–	–	–	–	–	–	–	–		–		–		101	311	332		0	0	0	101	311	332
Net income	–	–	–	–	–	–	–	–	–	–		–		–		258	800	704		61	20	(192)	319	820	512
Net income attributable to noncontrolling interests	–	–	–	–	–	–	–	–	–	–		–		–		4	12	21		61	20	(192)	65	32	(171)
Net income attributable to shareholders	–	–	–	–	–	–	–	–	–	–		–		–		254	788	683		–	–	–	254	788	683
Statement of operations metrics (%)
Cost/income ratio	72.0	69.9	91.1	84.4	87.3	133.4	63.4	75.8	80.3	–		–		–		93.1	81.8	83.6		–	–	–	92.1	81.6	86.1
Pre-tax income margin	26.6	28.7	8.0	15.4	13.2	(36.3)	36.6	24.2	19.7	–		–		–		6.2	17.8	15.2		–	–	–	7.2	18.0	12.6
Effective tax rate	–	–	–	–	–	–	–	–	–	–		–		–		28.1	28.0	32.0		–	–	–	24.0	27.5	39.3
Net income margin	–	–	–	–	–	–	–	–	–	–		–		–		4.4	12.6	10.0		–	–	–	4.3	12.6	10.2
Utilized economic capital and return
Average utilized economic capital (CHF million)	7,667	7,360	7,057	18,833	19,327	19,017	2,846	3,080	3,155	1,818	2	1,911	2	1,122	2	31,161	31,666	30,338		–	–	–	31,161	31,666	30,338
Pre-tax return on average utilized economic capital (%)   3	36.2	42.4	12.1	11.5	8.6	(14.6)	32.6	18.6	13.5	–		–		–		5.3	14.7	14.2		–	–	–	6.1	14.9	11.7
Balance sheet statistics (CHF million)
Total assets	376,989	366,609	346,744	772,480	796,613	825,416	24,074	23,647	22,739	(154,695)	4	(148,006)	4	(139,627)	4	1,018,848	1,038,863	1,055,272		4,444	4,592	6,249	1,023,292	1,043,455	1,061,521
Net loans	205,169	202,445	192,177	37,178	36,623	34,256	–	–	–	109		96		14		242,456	239,164	226,447		–	–	–	242,456	239,164	226,447
Goodwill	767	781	733	6,358	6,393	6,191	1,478	1,491	1,437	–		–		–		8,603	8,665	8,361		–	–	–	8,603	8,665	8,361
Number of employees (full-time equivalents)
Number of employees	24,100	23,800	24,700	20,600	20,600	22,100	2,800	2,900	3,000	900		900		900		48,400	48,200	50,700		–	–	–	48,400	48,200	50,700
1    Core Results include the results of our integrated banking business, excluding revenues and expenses in respect of noncontrolling interests without SEI.   2    Includes diversification benefit.   3    Calculated using a return excluding interest costs for allocated goodwill.   4    Under the central treasury model, Group financing results in intra-Group balances between the segments. The elimination of these assets and liabilities occurs in the Corporate Center.

Key performance indicators

Our key performance indicators (KPIs) are targets to be achieved over a three to five year period across market cycles. As such, year to date results may be more meaningful than individual quarterly results. Our KPIs are assessed annually as part of our normal planning process.

in / end of	Target	3Q12	9M12	2011	2010	2009
Growth (%)
Collaboration revenues 1	18 - 20% of net revenues	20.2	17.8	16.8	14.4	15.5
Net new asset growth (annualized)	Above 6%	1.7	0.4	3.9	5.3	3.9
Efficiency and performance (%)
Total shareholder return (Credit Suisse) 2	Superior return vs. peer group	15.5	(6.2)	(39.4)	(23.3)	80.1
Total shareholder return of peer group 2, 3	–	14.6	24.6	(35.0)	(1.7)	36.6
Return on equity attributable to shareholders (annualized)	Above 15%	2.9	4.2	6.0	14.4	18.3
Core Results pre-tax income margin	Above 28%	6.2	8.4	10.8	22.2	25.5
Capital (%)
Tier 1 ratio (Basel II.5)	Compliance with Swiss "Too Big to Fail" and Basel III	18.5	18.5	15.2	14.2	–
1    Includes revenues recognized when more than one of the Group's three divisions participates in a particular transaction. Collaboration revenues are measured by a dedicated governance structure and implemented through revenue sharing agreements or internal revenue sharing awards. Only the net revenues generated by the transaction are considered.   2    Source: Bloomberg. Total shareholder return is calculated as equal to the appreciation or depreciation of a particular share, plus any dividends, over a given period, expressed as a percentage of the share's value at the beginning of the period.   3    The peer group for this comparison comprises Bank of America, Barclays, BNP Paribas, Citigroup, Deutsche Bank, HSBC, JPMorgan Chase, Société Générale and UBS. The total shareholder return of this peer group is calculated as a simple, unweighted average of the return reported by Bloomberg for each of the members of the peer group.

Information and developments

Format of presentation and changes in reporting

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.

In 3Q12, we began recording gains on the sale of real estate in connection with our July 2012 capital measures in the Corporate Center. Prior periods have been restated to conform to current presentation.

In 2Q12, we made a number of changes to the presentation of our results, mainly related to the legal merger of Clariden Leu into the Bank, the integration of our Private Banking and Investment Banking operations into a single function and other changes relating to the management and measurement of our assets under management and net new assets. As a result of these matters, prior period results of the Bank and its divisions and assets under management for the Group were restated.

> Refer to “Changes in reporting” in Information and developments in the Credit Suisse Financial Report 2Q12 for further information.

The definitions of regulatory capital and capital ratios mentioned below and in II - Treasury refer to the Swiss “Too Big to Fail” legislation adopted in September 2011 as determined by the Swiss Financial Market Supervisory Authority (FINMA). Ratio calculations based on these capital definitions use projected Basel III year-end 2012 risk-weighted assets. The expected year-end 2012 ratios are based on a pro-forma calculation assuming successful completion of the July 2012 capital measures, and using Bloomberg consensus net income estimates and our Basel III risk-weighted assets estimates.

As the Basel Committee on Banking Supervision (BCBS) Basel III framework (Basel III) will not be implemented before January 1, 2013, we have calculated our Basel III risk-weighted assets and capital for purposes of this report in accordance with the currently proposed requirements and our current interpretation of such requirements, including relevant assumptions. Changes in the actual implementation of Basel III would result in different numbers from those shown in this report.

Capital measures and target

On July 18, 2012, we announced a number of measures (the July 2012 capital measures) to accelerate the strengthening of our capital position in light of the current regulatory and market environment. We also announced a capital ratio target of 10% based on our estimate of the Look-through Swiss Core Capital ratio, which we expect to achieve by the middle of 2013. During 3Q12, we made significant progress in implementing the July 2012 capital measures, achieving CHF 12.8 billion of the CHF 15.3 billion target.

The measures are expected to result in a year-end 2012 Look-through Swiss Core Capital ratio of approximately 9.3%.

We announced a CHF 130 billion balance sheet reduction for the Group to under CHF 900 billion to be achieved by year-end 2013 on a foreign exchange neutral basis. Together with the July 2012 capital measures, this will improve our leverage ratio.

> Refer to “Progress made on capital measures in 3Q12” and “Capital ratio simulations” in II – Treasury, risk, balance sheet and off-balance sheet – Treasury management for further information.

Cost savings and strategy implementation

We continued to adapt our client-focused, capital-efficient strategy to optimize our use of capital and improve the cost structure. In 2011, we began implementing a number of cost efficiency initiatives with the goal of achieving CHF 2.0 billion in total cost savings compared to the annualized 6M11 expense run rate by the end of 2013. In July 2012, we announced an increased year-end 2013 cost savings target of a total of CHF 3.0 billion.

As we expect to exceed our previously announced cost savings, we increased our target by an additional CHF 0.5 billion of savings to be achieved during 2014 and a further CHF 0.5 billion during 2015, thereby targeting a total of CHF 4.0 billion of expense reductions compared to the annualized 6M11 expense run rate. The majority of these savings will be realized from shared infrastructure and support services across the Group, mainly through the consolidation of fragmented and duplicate functions globally and the continued consolidation of IT applications and functions. We have also targeted further savings within our three operating divisions, principally within Investment Banking by driving synergies in our equities businesses and continuing to rationalize businesses in Fixed Income, underwriting and advisory. We expect to incur approximately CHF 240 million of business realignment costs associated with these measures in 4Q12, and an additional CHF 1 billion of such costs over the course of 2013 to 2015.

> Refer to “Strategy” in I – Information on the company in the Credit Suisse Annual Report 2011 and “Private Banking”, “Investment Banking” and “Asset Management” for further information.

Share Issuances

In 3Q12, we issued 33.5 million new Group shares to cover the 2Q12 purchase of the residual minority stake in Hedging-Griffo Investimentos S.A. (Hedging-Griffo), representing approximately 2.5% of our share capital upon issuance.

Compensation and benefits

Compensation and benefits for a given year reflect the strength and breadth of the business results and staffing levels and include fixed components, such as salaries, benefits and the amortization of share-based and other deferred compensation from prior-year awards, and a discretionary variable component. The variable component reflects the performance-based variable compensation for the current year. The portion of the performance-based compensation for the current year deferred through share-based and other awards is expensed in future periods and is subject to vesting and other conditions.

> Refer to “Compensation and benefits” in II – Operating and financial review – Core Results in the Credit Suisse Annual Report 2011 for further information.

Regulatory developments and proposals

Government leaders and regulators continued to focus on reform of the financial services industry, including capital, leverage and liquidity requirements, changes in compensation practices and systemic risk.

On September 12, 2012, the European Commission published a proposal for a regulation that would empower the ECB as a single supervisor for banks in the 17 eurozone EU Member States, a communication explaining their plans to create a European banking union, and a proposal for a regulation that would define the role of the European Banking Authority under the new supervisory arrangements. These proposals contemplate an ongoing role for the existing national eurozone regulators.

On September 18, 2012 the Swiss Parliament adopted implementing ordinances related to the “Too Big to Fail” legislation including with regard to the implementation of Basel III into Swiss law. The ordinances will be effective January 1, 2013 and include requirements particular to systemically relevant banks, including specific capital, leverage, large exposure and Recovery and Resolution Plan requirements. A liquidity-related implementing ordinance under the legislation remains pending, part of which is expected to be completed by year-end 2012 and enter into force January 1, 2013, with further quantitative requirements specific to systemically relevant banks expected to be approved by Parliament and become effective in the first half of 2013. The further quantitative requirements are expected to be based on an existing agreement reached with FINMA.

On September 19, 2012, the staff of the US Commodity Futures Trading Commission (CFTC) issued guidance clarifying that swap dealer registration under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) will not be required until December 31, 2012, at the earliest, although swap dealers may register voluntarily before then. This guidance will have the effect of delaying the application of most CFTC rules under the Dodd-Frank Act to Credit Suisse until the earlier of December 31, 2012 or when Credit Suisse decides to register a subsidiary as a swap dealer.

Bilateral tax agreements between Switzerland and each of the UK and Austria have now been approved by the contracting countries and will enter into force on January 1, 2013. The agreement between Switzerland and Germany has been approved by Switzerland and is expected to be considered by German legislators before year-end 2012.

> Refer to “Regulation and supervision” in I – Information on the company in the Credit Suisse Annual Report 2011 for further information.

Allocations and funding

Responsibility for each product is allocated to a segment, which records all related revenues and expenses. Revenue-sharing and service level agreements, which aim to reflect the pricing structure of unrelated third-party transactions, govern the compensation received by one segment for generating revenue or providing services on behalf of another.  Corporate services and business support are provided by the Shared Services area and these costs are allocated to the segments and Corporate Center based on their requirements and other relevant measures.

We centrally manage our funding activities, with new securities for funding and capital purposes issued primarily by the Bank which lends funds to our operating subsidiaries and affiliates. Capital is distributed to the segments considering factors such as regulatory capital requirements, utilized economic capital and the historic and future potential return on capital. Transfer pricing, using market rates, is used to record net revenues and expenses relating to this funding in each of the segments, and our businesses are also credited to the extent they provide long-term stable funding.

> Refer to “Allocations and funding” in II – Operating and financial review – Core Results in the Credit Suisse Annual Report 2011 for further information.

Fair valuations

Fair value can be a relevant measurement for financial instruments when it aligns the accounting for these instruments with how we manage our business. The levels of the fair value hierarchy as defined by the relevant accounting guidance are not a measurement of economic risk, but rather an indication of the observability of prices or valuation inputs.

The Financial Report 3Q12, including additional disclosures on fair value of financial instruments, will be published on our website and filed with the US Securities and Exchange Commission (SEC) on or about November 6, 2012.

> Refer to “Note 1 – Summary of significant accounting policies” and “Note 26 – Financial instruments” in III – Condensed consolidated financial statements – unaudited for further information.

Personnel

Headcount at the end of 3Q12 was 48,400, up 200 from 2Q12, reflecting seasonal graduate hiring, and down 2,300 from 3Q11. The decrease from 3Q11 reflected reductions in headcount in connection with our cost efficiency initiatives, primarily in Investment Banking and Private Banking.

Number of employees by division
	end of				% change
	3Q12		2Q12	3Q11	QoQ	YoY
Number of employees by division (full-time equivalents)
Private Banking	24,100		23,800	24,700	1	(2)
Investment Banking	20,600		20,600	22,100	0	(7)
Asset Management	2,800		2,900	3,000	(3)	(7)
Corporate Center	900		900	900	0	0
Number of employees	48,400	1	48,200	50,700	0	(5)
Reflects the integration of Clariden Leu and the integration of Private Banking and Investment Banking operations. Prior periods have been restated to reflect the current presentation.
1    Excludes 1,400 employees in connection with the cost efficiency initiatives.

Private Banking

In 3Q12, we reported income before taxes of CHF 689 million and net revenues of CHF 2,591 million.

Our results reflected margin pressure in an adverse operating environment, partially mitigated by the continuing implementation of our strategic initiatives. Net revenues were stable compared to 3Q11, with lower transaction-based revenues, higher net interest income and stable recurring commissions and fees. Net revenues were lower compared to 2Q12, reflecting a decrease in all major revenue categories. Lower transaction-based revenues mainly reflected gains in 2Q12 from the integration of Clariden Leu, partly offset by higher brokerage and product issuing fees in 3Q12. Recurring commissions and fees were lower, primarily due to semi-annual performance fees in 2Q12. Net interest income decreased slightly in a challenging interest rate environment.

Total operating expenses were stable compared to 3Q11, excluding 3Q11 litigation provisions of CHF 478 million. Compared to 2Q12, total operating expenses were stable. Compensation and benefits decreased CHF 58 million compared to 2Q12, reflecting our efficiency initiatives. General and administrative expenses increased 4% compared to 2Q12, primarily driven by higher regulatory costs.

Provision for credit losses were CHF 36 million on a net loan portfolio of CHF 205 billion.

In 3Q12, we attracted net new assets of CHF 5.1 billion in Wealth Management Clients across all regions, primarily from emerging markets, and from our UHNWI client segment.

Results
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Statements of operations (CHF million)
Net revenues	2,591	2,704	2,600	(4)	0	7,899	8,120	(3)
Provision for credit losses	36	39	25	(8)	44	115	35	229
Compensation and benefits	1,049	1,107	1,092	(5)	(4)	3,350	3,402	(2)
General and administrative expenses	662	635	1,129	4	(41)	1,916	2,407	(20)
Commission expenses	155	148	147	5	5	448	473	(5)
Total other operating expenses	817	783	1,276	4	(36)	2,364	2,880	(18)
Total operating expenses	1,866	1,890	2,368	(1)	(21)	5,714	6,282	(9)
Income before taxes	689	775	207	(11)	233	2,070	1,803	15
of which Wealth Management Clients	483	551	(9)	(12)	–	1,420	1,093	30
of which Corporate & Institutional Clients	206	224	216	(8)	(5)	650	710	(8)
Statement of operations metrics (%)
Cost/income ratio	72.0	69.9	91.1	–	–	72.3	77.4	–
Pre-tax income margin	26.6	28.7	8.0	–	–	26.2	22.2	–
Utilized economic capital and return
Average utilized economic capital (CHF million)	7,667	7,360	7,057	4	9	7,490	6,916	8
Pre-tax return on average utilized economic capital (%) 1	36.2	42.4	12.1	–	–	37.2	35.2	–
Number of employees (full-time equivalents)
Number of employees	24,100	23,800	24,700	1	(2)	24,100	24,700	(2)
1    Calculated using a return excluding interest costs for allocated goodwill.

Results (continued)
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Net revenue detail (CHF million)
Net interest income	1,147	1,165	1,082	(2)	6	3,438	3,356	2
Recurring commissions and fees	885	924	888	(4)	0	2,702	2,860	(6)
Transaction-based	559	615	630	(9)	(11)	1,759	1,904	(8)
Net revenues	2,591	2,704	2,600	(4)	0	7,899	8,120	(3)
Provision for credit losses (CHF million)
New provisions	61	68	55	(10)	11	210	150	40
Releases of provisions	(25)	(29)	(30)	(14)	(17)	(95)	(115)	(17)
Provision for credit losses	36	39	25	(8)	44	115	35	229
Balance sheet statistics (CHF million)
Net loans	205,169	202,445	192,177	1	7	205,169	192,177	7
of which Wealth Management Clients 1	145,226	143,559	138,175	1	5	145,226	138,175	5
of which Corporate & Institutional Clients	59,943	58,886	54,002	2	11	59,943	54,002	11
Deposits	281,954	272,561	260,988	3	8	281,954	260,988	8
of which Wealth Management Clients 1	216,795	212,566	201,179	2	8	216,795	201,179	8
of which Corporate & Institutional Clients	65,159	59,995	59,809	9	9	65,159	59,809	9
Number of relationship managers
Switzerland	1,570	1,630	1,740	(4)	(10)	1,570	1,740	(10)
EMEA	1,320	1,340	1,360	(1)	(3)	1,320	1,360	(3)
Americas	640	600	610	7	5	640	610	5
Asia Pacific	430	390	410	10	5	430	410	5
Wealth Management Clients	3,960	3,960	4,120	0	(4)	3,960	4,120	(4)
Corporate & Institutional Clients (Switzerland)	560	550	500	2	12	560	500	12
Number of relationship managers	4,520	4,510	4,620	0	(2)	4,520	4,620	(2)
1    Wealth Management Clients covers individual clients, including affluent, high-net-worth and ultra-high-net-worth individual clients.

Results detail

The following provides a comparison of our 3Q12 results versus 3Q11 (YoY) and versus 2Q12 (QoQ).

Net revenues

Recurring revenues arise from net interest income, recurring commissions and fees, including performance-based fees, related to assets under management and custody assets, as well as fees for general banking products and services. Net interest income includes a term spread credit on stable deposit funding and a term spread charge on loans. Transaction-based revenues arise primarily from brokerage and product issuing fees, foreign exchange income from client transactions and other transaction-based income.

YoY: Stable at CHF 2,591 million

Net revenues were stable, with lower transaction-based revenues offset by higher net interest income. Transaction-based revenues were 11% lower, driven by lower revenues across all major revenue categories, reflecting significantly lower client activity and lower transaction volumes. Net interest income increased 6%, reflecting higher average deposit and loan volumes. Deposit margins decreased significantly, reflecting the low interest rate environment. Loan margins were stable. Recurring commissions and fees were stable as higher investment account and services fees were offset by lower investment product management fees and lower discretionary mandate management fees.

QoQ: Down 4% from CHF 2,704 million to CHF 2,591 million

The decrease in net revenues was driven by a decrease in all major revenue categories. Transaction-based revenues decreased 9%, reflecting the gains in 2Q12 from the integration of Clariden Leu. Brokerage and product issuing fees and foreign exchange client business fees increased in 3Q12. Recurring commissions and fees were 4% lower, driven by the semi-annual performance fees included in 2Q12 and lower investment account and services fees in 3Q12, partly offset by higher banking services fees. Net interest income was slightly lower, reflecting slightly higher average loan volumes with stable margins and higher average deposit volumes with lower margins.

Provision for credit losses

The Wealth Management Clients loan portfolio is substantially comprised of residential mortgages in Switzerland and loans collateralized by securities. Our corporate and institutional loan portfolio has relatively low concentrations and is mainly secured by mortgages, securities and other financial collateral.

YoY: Up 44% from CHF 25 million to CHF 36 million

Wealth Management Clients recorded net provisions of CHF 26 million and Corporate & Institutional Clients recorded net provisions of CHF 10 million. Provision for credit losses reflected higher new provisions in both Wealth Management Clients and Corporate & Institutional Clients.

QoQ: Down 8% from CHF 39 million to CHF 36 million

Provision for credit losses were lower in both Wealth Management Clients and Corporate & Institutional Clients. In 2Q12, Wealth Management Clients recorded net provisions of CHF 28 million while Corporate & Institutional Clients recorded net provisions of CHF 11 million. Provision for credit losses reflected lower new provisions in both Wealth Management Clients and Corporate & Institutional Clients.

Operating expenses

Compensation and benefits

YoY: Down 4% from CHF 1,092 million to CHF 1,049 million

Lower compensation and benefits primarily reflected measures taken as part of our cost efficiency initiatives, resulting in lower salary expense. Discretionary performance-related compensation accruals decreased due to the lower results.

QoQ: Down 5% from CHF 1,107 million to CHF 1,049 million

The decrease primarily reflected measures taken as part of our cost efficiency initiatives.

General and administrative expenses

YoY: Down 41% from CHF 1,129 million to CHF 662 million

The decrease mainly reflected litigation provisions of CHF 478 million in 3Q11 in connection with US and German tax matters. Excluding the litigation provisions, general and administrative expenses were slightly higher, driven by higher regulatory costs.

QoQ: Up 4% from CHF 635 million to CHF 662 million

Higher general and administrative expenses were driven by higher regulatory costs.

Assets under management

Assets under management continued to reflect a risk-averse asset mix, with investments in less complex, lower-margin products, also within managed investment products, and a significant portion of assets in cash and money market products.

Assets under management of CHF 1,023.6 billion were CHF 35.7 billion higher compared to the end of 2Q12 due to positive market movements and net new assets. Wealth Management Clients contributed net new assets of CHF 5.1 billion with inflows across all regions, particularly from emerging markets, and from our UHNWI client segment. Corporate & Institutional Clients in Switzerland reported inflows of CHF 0.1 billion. Average assets under management of Wealth Management Clients increased 2.9% compared to 2Q12.

Assets under management were CHF 106.6 billion higher compared to the end of 3Q11, driven primarily by positive market movements, and by net new assets and a favorable foreign exchange impact. Average assets under management in Wealth Management Clients increased 11.6% compared to 3Q11.

Assets under management - Private Banking
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Assets under management by region (CHF billion)
Switzerland	258.2	251.3	250.3	2.7	3.2	258.2	250.3	3.2
EMEA	277.9	271.3	255.6	2.4	8.7	277.9	255.6	8.7
Americas	162.6	153.9	133.6	5.7	21.7	162.6	133.6	21.7
Asia Pacific	104.6	97.6	82.3	7.2	27.1	104.6	82.3	27.1
Wealth Management Clients	803.3	774.1	721.8	3.8	11.3	803.3	721.8	11.3
Corporate & Institutional Clients (Switzerland)	220.3	213.8	195.2	3.0	12.9	220.3	195.2	12.9
Assets under management	1,023.6	987.9	917.0	3.6	11.6	1,023.6	917.0	11.6
Average assets under management (CHF billion)
Average assets under management	1,011.3	983.9	907.4	2.8	11.5	988.6	948.8	4.2
Assets under management by currency (CHF billion)
USD	324.7	308.2	271.3	5.4	19.7	324.7	271.3	19.7
EUR	191.3	187.9	192.4	1.8	(0.6)	191.3	192.4	(0.6)
CHF	359.5	350.0	329.7	2.7	9.0	359.5	329.7	9.0
Other	148.1	141.8	123.6	4.4	19.8	148.1	123.6	19.8
Assets under management	1,023.6	987.9	917.0	3.6	11.6	1,023.6	917.0	11.6
Net new assets by region (CHF billion)
Switzerland	0.1	0.7	(0.1)	(85.7)	–	2.1	7.0	(70.0)
EMEA	1.3	0.3	2.5	333.3	(48.0)	(0.8)	8.8	–
Americas	0.2	2.5	1.4	(92.0)	(85.7)	6.5	7.1	(8.5)
Asia Pacific	3.5	2.0	2.9	75.0	20.7	8.3	9.6	(13.5)
Wealth Management Clients	5.1	5.5	6.7	(7.3)	(23.9)	16.1	32.5	(50.5)
Corporate & Institutional Clients (Switzerland)	0.1	(2.1)	0.6	–	(83.3)	0.4	2.7	(85.2)
Net new assets	5.2	3.4	7.3	52.9	(28.8)	16.5	35.2	(53.1)
Growth in assets under management (CHF billion)
Net new assets	5.1	5.5	6.7	–	–	16.1	32.5	–
Other effects	24.1	(3.6)	(28.4)	–	–	37.0	(73.8)	–
of which market movements	24.6	(18.3)	(48.1)	–	–	38.2	(48.0)	–
of which currency	(0.4)	14.8	19.8	–	–	(0.7)	(19.0)	–
of which other	(0.1)	(0.1)	(0.1)	–	–	(0.5)	(6.8)	–
Wealth Management Clients	29.2	1.9	(21.7)	–	–	53.1	(41.3)	–
Corporate & Institutional Clients	6.5	2.5	(4.3)	–	–	17.3	(0.7)	–
Growth in assets under management	35.7	4.4	(26.0)	–	–	70.4	(42.0)	–
Growth in assets under management (annualized) (%)
Net new assets	2.1	1.4	3.1	–	–	2.3	4.9	–
of which Wealth Management Clients	2.6	2.8	3.6	–	–	2.9	5.7	–
of which Corporate & Institutional Clients	0.2	(4.0)	1.2	–	–	0.3	1.8	–
Other effects	12.4	0.4	(14.1)	–	–	7.5	(10.7)	–
Growth in assets under management	14.5	1.8	(11.0)	–	–	9.8	(5.8)	–
Growth in assets under management (rolling four-quarter average) (%)
Net new assets	2.6	2.8	4.4	–	–	–	–	–
of which Wealth Management Clients	2.9	3.0	5.0	–	–	–	–	–
of which Corporate & Institutional Clients	1.5	1.8	1.9	–	–	–	–	–
Other effects	9.0	2.0	(9.0)	–	–	–	–	–
Growth in assets under management (rolling four-quarter average)	11.6	4.8	(4.6)	–	–	–	–	–

Progress on strategy implementation

We continue to make progress in implementing the initiatives announced in November 2011 to optimize Private Banking’s business portfolio and enhance profitability. Overall, we are well on track towards achieving the targeted profitability enhancement despite an adverse operating environment.

We completed the integration of Clariden Leu into Credit Suisse, including the banking platform and systems infrastructure, integrating 1,000 employees and over 110,000 clients. We also announced the sale of Clariden Leu Europe.

We rolled out a centralized coverage model for international affluent clients on our Swiss booking platform.

Wealth Management Clients

Net revenues

Net interest income

YoY: Up 7% from CHF 794 million to CHF 846 million

Higher net interest income reflected higher average loan and deposit volumes notwithstanding significantly lower deposit margins. Higher average deposit volumes reflected a continued risk-averse client asset mix and a higher average US dollar exchange rate against the Swiss franc.

QoQ: Down 2% from CHF 860 million to CHF 846 million

Slightly lower net interest income reflected slightly higher loan margins on stable average volumes and lower deposit margins on higher average volumes.

Recurring commissions and fees

YoY: Stable at CHF 780 million

Recurring commissions and fees were stable as higher investment account and services fees were offset by lower discretionary mandate management fees and lower investment product management fees. Recurring commissions and fees reflected a conservative client asset mix.

QoQ: Down 4% from CHF 809 million to CHF 780 million

The decrease in recurring commissions and fees was driven by semi-annual performance fees in 2Q12, partially offset by higher banking services fees in 3Q12.

Transaction-based

YoY: Down 10% from CHF 544 million to CHF 491 million

The decline was mainly driven by lower foreign exchange client business fees and lower brokerage and product issuing fees, reflecting lower client activity and lower transaction volumes.

QoQ: Down 1 0 % from CHF 548 million to CHF 491 million

The decrease mainly reflected 2Q12 gains from the integration of Clariden Leu, of which CHF 41 million related to the sale of a non-core business. The prior period gain was partially offset by higher brokerage and product issuing fees and higher foreign exchange client business fees in 3Q12.

Gross margin

Our gross margin was 107 basis points in 3Q12, 13 basis points lower compared to 3Q11. Compared to 2Q12, the gross margin decreased eight basis points, reflecting the 2Q12 gains from the Clariden Leu integration, the continued adverse interest rate environment, the conservative client asset mix and low client activity.

Results - Wealth Management Clients
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Statements of operations (CHF million)
Net revenues	2,117	2,217	2,126	(5)	0	6,461	6,681	(3)
Provision for credit losses	26	28	20	(7)	30	75	40	88
Total operating expenses	1,608	1,638	2,115	(2)	(24)	4,966	5,548	(10)
Income/(loss) before taxes	483	551	(9)	(12)	–	1,420	1,093	30
Statement of operations metrics (%)
Cost/income ratio	76.0	73.9	99.5	–	–	76.9	83.0	–
Pre-tax income margin	22.8	24.9	(0.4)	–	–	22.0	16.4	–
Net revenue detail (CHF million)
Net interest income	846	860	794	(2)	7	2,534	2,474	2
Recurring commissions and fees	780	809	788	(4)	(1)	2,367	2,535	(7)
Transaction-based	491	548	544	(10)	(10)	1,560	1,672	(7)
Net revenues	2,117	2,217	2,126	(5)	0	6,461	6,681	(3)
Average assets under management (CHF billion)
Average assets under management	794.3	772.0	711.5	2.9	11.6	776.6	750.2	3.5
Gross margin (annualized) (bp)  1
Net interest income	43	45	45	–	–	43	44	–
Recurring commissions and fees	39	42	44	–	–	41	45	–
Transaction-based	25	28	31	–	–	27	30	–
Gross margin	107	115	120	–	–	111	119	–
1    Net revenues divided by average assets under management.

Corporate & Institutional Clients

Net revenues

Net interest income

YoY: Up 5% from CHF 288 million to CHF 301 million

The increase reflected lower loan margins on higher average volumes and significantly lower deposit margins on higher average volumes.

QoQ: Stable at CHF 301 million

Stable net interest income reflected lower loan margins on slightly higher average volumes and lower deposit margins on higher average volumes.

Recurring commissions and fees

YoY: Up 5% from CHF 100 million to CHF 105 million

The increase was mainly driven by higher investment account and services fees.

QoQ: Down 9% from CHF 115 million to CHF 105 million

Recurring commissions and fees decreased, primarily reflecting lower investment account and services fees.

Transaction-based

YoY: Down 21% from CHF 86 million to CHF 68 million

The decrease was mainly driven by fair value losses on the Clock Finance transaction of CHF 9 million compared to fair value gains of CHF 6 million in 3Q11.

QoQ: Stable at CHF 68 million

Transaction-based revenues were stable, as higher corporate advisory fees and higher foreign exchange client business fees were mostly offset by higher fair value losses on the Clock Finance transaction of CHF 9 million compared to fair value losses of CHF 4 million in 2Q12.

Results - Corporate & Institutional Clients
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Statements of operations (CHF million)
Net revenues	474	487	474	(3)	0	1,438	1,439	0
Provision for credit losses	10	11	5	(9)	100	40	(5)	–
Total operating expenses	258	252	253	2	2	748	734	2
Income before taxes	206	224	216	(8)	(5)	650	710	(8)
Statement of operations metrics (%)
Cost/income ratio	54.4	51.7	53.4	–	–	52.0	51.0	–
Pre-tax income margin	43.5	46.0	45.6	–	–	45.2	49.3	–
Net revenue detail (CHF million)
Net interest income	301	305	288	(1)	5	904	882	2
Recurring commissions and fees	105	115	100	(9)	5	335	325	3
Transaction-based	68	67	86	1	(21)	199	232	(14)
Net revenues	474	487	474	(3)	0	1,438	1,439	0

Investment Banking

In 3Q12, we reported income before taxes of CHF 508 million and net revenues of CHF 3,296 million. Results demonstrated strong franchise momentum and the continued execution of our refined strategy to increase operating and capital efficiencies.

Fixed income sales and trading revenues were strong, reflecting solid client flow and favorable trading conditions. Relative to 3Q11, results were significantly higher, driven by a substantial increase in securitized products and global credit products revenues due to a more favorable market environment with greater client demand for higher yielding instruments, and improved results for emerging markets. We are benefitting from a more balanced business portfolio with reduced revenue volatility, reflecting the significant decline in inventory levels. Revenues also increased compared to 2Q12 due to stronger performance in securitized products and global credit products, higher revenues from corporate lending and lower losses from businesses we are exiting.

Equity sales and trading revenues were resilient and increased relative to 3Q11, reflecting more favorable market conditions, with stronger revenues across equities arbitrage trading, convertibles and fund-linked products. Relative to 2Q12, results were lower due to weaker derivatives revenues driven by our conservative risk positioning in Asia and a seasonal decline in prime services revenues.

Underwriting and advisory results were higher in the quarter relative to 2Q12 and 3Q11, driven by strong underwriting revenues due to robust issuance volumes and higher M&A, advisory and private placement fees.

Results were impacted by higher litigation provisions in 3Q12, including certain significant matters totaling CHF 136 million primarily concerning mortgage-related matters. Compensation and benefits increased CHF 63 million, or 4%, from 2Q12, primarily reflecting higher deferred compensation expense from prior-year awards. Total operating expenses in 9M12, excluding the deferred compensation expense of CHF 418 million related to 2011 Partner Asset Facility (PAF2) in 1Q12 and the significant litigation matters, were down CHF 923 million, or 10%, compared to 9M11.

In Swiss francs, net revenues increased 66% and total operating expenses increased 5%. In US dollars, net revenues were up 46% and total operating expenses declined 8% from 3Q11.

Results
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Statements of operations (CHF million)
Net revenues	3,296	2,909	1,981	13	66	10,364	9,885	5
Provision for credit losses	5	(14)	59	–	(92)	(15)	55	–
Compensation and benefits	1,520	1,457	1,463	4	4	5,053	5,351	(6)
General and administrative expenses	1,027	839	898	22	14	2,705	2,613	4
Commission expenses	236	244	281	(3)	(16)	732	895	(18)
Total other operating expenses	1,263	1,083	1,179	17	7	3,437	3,508	(2)
Total operating expenses	2,783	2,540	2,642	10	5	8,490	8,859	(4)
Income/(loss) before taxes	508	383	(720)	33	–	1,889	971	95
Statement of operations metrics (%)
Cost/income ratio	84.4	87.3	133.4	–	–	81.9	89.6	–
Pre-tax income margin	15.4	13.2	(36.3)	–	–	18.2	9.8	–
Utilized economic capital and return
Average utilized economic capital (CHF million)	18,833	19,327	19,017	(3)	(1)	19,118	19,051	0
Pre-tax return on average utilized economic capital (%) 1	11.5	8.6	(14.6)	–	–	13.9	7.3	–
Number of employees (full-time equivalents)
Number of employees	20,600	20,600	22,100	0	(7)	20,600	22,100	(7)
1    Calculated using a return excluding interest costs for allocated goodwill.

Results (continued)
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Net revenue detail (CHF million)
Debt underwriting	410	312	312	31	31	1,150	1,212	(5)
Equity underwriting	170	97	113	75	50	387	608	(36)
Total underwriting	580	409	425	42	36	1,537	1,820	(16)
Advisory and other fees	288	235	181	23	59	736	681	8
Total underwriting and advisory	868	644	606	35	43	2,273	2,501	(9)
Fixed income sales and trading	1,496	1,190	538	26	178	4,719	3,713	27
Equity sales and trading	1,026	1,150	894	(11)	15	3,587	3,757	(5)
Total sales and trading	2,522	2,340	1,432	8	76	8,306	7,470	11
Other	(94)	(75)	(57)	25	65	(215)	(86)	150
Net revenues	3,296	2,909	1,981	13	66	10,364	9,885	5
Average one-day, 98% risk management Value-at-Risk (CHF million)
Interest rate & credit spread	52	56	69	(7)	(25)	60	72	(17)
Foreign exchange	9	18	10	(50)	(10)	15	12	25
Commodity	2	3	7	(33)	(71)	3	12	(75)
Equity	25	20	20	25	25	22	24	(8)
Diversification benefit	(38)	(37)	(30)	3	27	(40)	(45)	(11)
Average one-day, 98% risk management Value-at-Risk	50	60	76	(17)	(34)	60	75	(20)
Basel III risk-weighted assets (billion)  1, 2
Risk-weighted assets (CHF)	191	195	268	(2)	(29)	191	268	(29)
Risk-weighted assets (USD)	204	206	295	(1)	(31)	204	295	(31)
1    Refer to "BIS statistics (Basel II.5)" in II – Treasury, risk, balance sheet and off-balance sheet – Treasury management for information on the currently applicable Basel II.5 framework.   2    As Basel III will not be implemented before January 1, 2013, we have calculated our Basel III risk-weighted assets and capital for purposes of this report in accordance with the currently proposed requirements and our current interpretation of such requirements, including relevant assumptions. Changes in the actual implementation of Basel III would result in different numbers from those shown in this report.

Results detail

The following provides a comparison of our 3Q12 results versus 3Q11 (YoY) and versus 2Q12 (QoQ).

Net revenues

Debt underwriting

YoY: Up 31% from CHF 312 million to CHF 410 million

The increase was primarily driven by higher revenues from leveraged finance, reflecting substantially higher industry-wide high yield issuance volumes and improved market share. We also had higher results in investment grade due to a significant increase in global issuance volumes.

QoQ: Up 31% from CHF 312 million to CHF 410 million

The increase was primarily due to higher results in leveraged finance, driven by increased industry-wide high yield issuance volumes and improved market share. Revenues from investment grade were higher due to increases in both global industry-wide issuance volumes and market share.

Equity underwriting

YoY: Up 50% from CHF 113 million to CHF 170 million

The increase was primarily driven by higher revenues from convertible offerings due to higher levels of global convertible issuance volumes. Revenues from follow-on offerings also increased, reflecting significantly higher levels of industry-wide follow-on issuance volumes and increased market share, offset by lower revenues from initial public offerings (IPOs).

QoQ: Up 75% from CHF 97 million to CHF 170 million

The increase was due to improved results in follow-on and convertibles offerings, driven by higher global issuance volumes and stronger market share in both products. The increases were partially offset by lower revenues from IPOs, reflecting lower global industry-wide IPO volumes.

Advisory and other fees

YoY: Up 59% from CHF 181 million to CHF 288 million

The increase was due to higher M&A fees despite a slight decline in global industry-wide completed M&A activity. We also had higher private placement fees, driven by a large Private Investment in Public Equity (PIPE) transaction in the energy sector.

QoQ: Up 23% from CHF 235 million to CHF 288 million

The increase was driven by higher revenues from private placement fees, primarily from the large PIPE transaction in the energy sector.

Fixed income sales and trading

YoY: Up 178% from CHF 538 million to CHF 1,496 million

The increase was primarily driven by strong and substantially improved results in securitized products and global credit products compared to weak performance in 3Q11, and higher revenues in emerging markets, especially in Latin America. In 3Q11, global credit products performance was impacted by challenging market-making conditions, weak client activity, reduced liquidity in the markets and widening credit spreads that led to valuation reductions on inventory positions. Securitized products revenues were also significantly lower in 3Q11 due to subdued client activity and valuation reductions on client flow inventory positions that were driven by a steep decline in cash and synthetic mortgage bond prices. Since the announcement of our refined strategy in November 2011, inventory levels across securitized products and global credit products have been reduced substantially, decreasing overall revenue volatility and resulting in a more balanced business portfolio. In addition, client activity was robust in both securitized products and global credit products during the quarter, reflecting greater client demand for higher yielding instruments. During the quarter, we refined our approach for determining the loss given default (LGD) parameter used in the valuation model for our corporate loan book. This approach, which is more granular and recognizes the seniority of certain unsecured loans, aligns the LGD used for regulatory capital calculations and valuation purposes. This refinement benefitted our results in corporate banking by CHF 72 million. Increases in revenues in 3Q12 were partly offset by lower results in global rates due to weaker client flow and losses of CHF 60 million from businesses we are exiting compared to gains of CHF 28 million in 3Q11. At the end of the quarter, fixed income Basel III risk-weighted assets totaled USD 131 billion, a reduction of 43% from a year ago, while revenues increased 178%.

QoQ: Up 26% from CHF 1,190 million to CHF 1,496 million

The increase was primarily driven by higher revenues in securitized products due to robust client flow in non-agency and agency residential mortgage-backed securities (RMBS) and asset finance. We had improved results in corporate lending, including the benefit from the refinement of the LGD valuation model. In the quarter, we incurred losses of CHF 60 million from businesses we are exiting compared to losses of CHF 139 million in 2Q12. In addition, we had increased revenues in global credit products, driven by strong client demand for high yielding instruments. These results were partially offset by lower revenues in emerging markets due to weaker levels of client activity. Fixed income Basel III risk-weighted assets were reduced by USD 8 billion from 2Q12.

Equity sales and trading

YoY: Up 15% from CHF 894 million to CHF 1,026 million

The increase was driven by higher revenues in equities arbitrage trading, convertibles and fund-linked products, reflecting more favorable capital market conditions despite lower secondary market volumes. The increase was partially offset by a decline in derivatives results, driven by our conservative risk positioning in Asia. Prime services results were resilient, but lower due to decreased client activity that offset market share gains.

QoQ: Down 11% from CHF 1,150 million to CHF 1,026 million

The decrease was primarily driven by weaker results in derivatives, reflecting our conservative risk positioning in Asia. We also had lower revenues in prime services due to lower client activity following a seasonally strong second quarter dividend season. The decreases were partially offset by improved performance in equity arbitrage trading, fund-linked products and convertibles, driven by more favorable trading conditions relative to 2Q12.

Provision for credit losses

YoY: From CHF 59 million to CHF 5 million

The change reflected significantly lower provisions, as the prior-year period included provisions against a guarantee provided in 2010 to a third-party bank, and also lower releases.

QoQ: From CHF (14) million to CHF 5 million

The change reflected lower provisions and lower releases.

Operating expenses

Compensation and benefits

YoY: Up 4% from CHF 1,463 million to CHF 1,520 million

The increase reflected the foreign exchange translation impact. In US dollars, compensation expenses decreased 9%, driven by lower salaries and other employee benefits, deferred compensation and related social security expenses.

QoQ: Up 4% from CHF 1,457 million to CHF 1,520 million

The increase was primarily driven by higher deferred compensation expense from prior-year awards and higher discretionary performance-related compensation expense, reflecting the improved results. The increase was slightly offset by a decrease in social security expenses due to share award deliveries in the second quarter.

General and administrative expenses

YoY: Up 14% from CHF 898 million to CHF 1,027 million

The increase was driven by higher litigation provisions, including certain significant matters totaling CHF 136 million, primarily concerning mortgage-related matters. The increase was partially offset by a decrease in the UK bank levy accrual, which was enacted in 3Q11.

QoQ: Up 22% from CHF 839 million to CHF 1,027 million

The increase was primarily driven by the increase in litigation provisions.

Market share momentum

– Ranked number two globally with 13.7% market share in the inaugural global survey for the prime brokerage industry from Hedge Fund Intelligence. The survey combines the results of the 2012 prime brokerage surveys of hedge fund assets from EuroHedge, AsiaHedge and US Absolute Return.

– Advanced to number three globally for completed M&A volumes by Dealogic for 9M12, up from number six for full year 2011.

– Ranked number three by Dealogic for global high yield debt issuance with 8.5% market share for 9M12, up from number five with 8.0% market share for full year 2011.

Progress on strategy implementation

Investment Banking continued to focus on executing our refined strategy announced in November 2011, resulting in more consistent performance, underscored by increased operating and capital efficiencies. In 3Q12, we made significant progress in lowering our expense base, further increasing our operating efficiency. In addition, we further reduced Basel III risk-weighted assets by USD 2 billion to USD 204 billion, bringing the cumulative reduction in Basel III risk-weighted assets to USD 91 billion since 3Q11. We announced a further 10% reduction in risk-weighted assets to USD 180 billion by year-end 2013.

Our progress is evident in the significant increase in pre-tax income of CHF 1,889 million in 9M12 from CHF 971 million 9M11, despite stable revenue levels. Our pre-tax margin also increased to 18% in 9M12 from 10% in 9M11.

Asset Management

In 3Q12, we reported income before taxes of CHF 222 million and net revenues of CHF 607 million.

In July 2012, we sold our remaining ownership interest in Aberdeen, resulting in a gain of CHF 140 million in 3Q12 and total gains of CHF 384 million in 2012, improving our capital position. In 2Q12 and 3Q11, we recognized gains of CHF 66 million and CHF 15 million, respectively, from earlier sales. Equity participations and other gains and losses also included an impairment of CHF 38 million related to Asset Management Finance LLC (AMF). Excluding the gains from the Aberdeen sales and the impairment related to AMF, income before taxes was CHF 120 million in 3Q12, CHF 67 million in 2Q12 and CHF 82 million in 3Q11.

Investment-related gains of CHF 101 million were significantly higher than the CHF 27 million gain in 2Q12 and the CHF 17 million loss in 3Q11, with gains in the energy and transport sectors and in hedge fund investments. Compared to 3Q11, fee-based revenues of CHF 438 million were down 14%, with lower carried interest on realized private equity gains and lower equity participations income. Our fee-based margin was 48 basis points compared to 56 basis points in 3Q11.

Total operating expenses of CHF 385 million were down 8% compared to 2Q12, primarily from lower compensation and benefits expense, and down 3% compared to 3Q11. Total operating expenses for 9M12 were down 4% compared to 9M11, despite the adverse foreign exchange translation impact.

In 3Q12, assets under management increased 2.3%. We had net asset outflows of CHF 0.5 billion, with outflows in traditional and diversified investments partially offset by inflows in alternative investments.

We made progress on the measures announced in July 2012 on our intention to move to a more liquid and capital-efficient alternatives business.

Results
	in / end of			% change		in / end of		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Statements of operations (CHF million)
Net revenues	607	550	493	10	23	1,838	1,767	4
Provision for credit losses	0	0	0	–	–	0	0	–
Compensation and benefits	237	256	228	(7)	4	763	752	1
General and administrative expenses	115	121	131	(5)	(12)	357	409	(13)
Commission expenses	33	40	37	(18)	(11)	109	116	(6)
Total other operating expenses	148	161	168	(8)	(12)	466	525	(11)
Total operating expenses	385	417	396	(8)	(3)	1,229	1,277	(4)
Income before taxes	222	133	97	67	129	609	490	24
Statement of operations metrics (%)
Cost/income ratio	63.4	75.8	80.3	–	–	66.9	72.3	–
Pre-tax income margin	36.6	24.2	19.7	–	–	33.1	27.7	–
Utilized economic capital and return
Average utilized economic capital (CHF million)	2,846	3,080	3,155	(8)	(10)	2,999	3,249	(8)
Pre-tax return on average utilized economic capital (%) 1	32.6	18.6	13.5	–	–	28.5	21.1	–
Number of employees (full-time equivalents)
Number of employees	2,800	2,900	3,000	(3)	(7)	2,800	3,000	(7)
1    Calculated using a return excluding interest costs for allocated goodwill.

Results (continued)
	in			% change		in		% change
	3Q12	2Q12	3Q11	QoQ	YoY	9M12	9M11	YoY
Net revenue detail by type (CHF million)
Asset management fees	330	326	328	1	1	985	1,009	(2)
Placement, transaction and other fees	56	51	66	10	(15)	151	188	(20)
Performance fees and carried interest	40	74	86	(46)	(53)	148	180	(18)
Equity participations income	12	27	28	(56)	(57)	59	96	(39)
Fee-based revenues	438	478	508	(8)	(14)	1,343	1,473	(9)
Investment-related gains/(losses)	101	27	(17)	274	–	229	299	(23)
Equity participations and other gains/(losses)	102	69	15	48	–	341	11	–
Other revenues 1	(34)	(24)	(13)	42	162	(75)	(16)	369
Net revenues	607	550	493	10	23	1,838	1,767	4
Net revenue detail by investment strategies (CHF million)
Alternative investments	280	328	348	(15)	(20)	872	933	(7)
Traditional investments	120	123	143	(2)	(16)	367	451	(19)
Diversified investments 2	118	82	23	44	413	401	103	289
Other	(12)	(10)	(4)	20	200	(31)	(19)	63
Net revenues before investment-related gains	506	523	510	(3)	(1)	1,609	1,468	10
Investment-related gains/(losses)	101	27	(17)	274	–	229	299	(23)
Net revenues	607	550	493	10	23	1,838	1,767	4
Fee-based margin on assets under management (annualized) (bp)
Fee-based margin 3	48	53	56	–	–	49	52	–
1    Includes allocated funding costs.   2    Includes revenues relating to management of the 2008 Partner Asset Facility and income from our former investment in Aberdeen.   3    Fee-based revenues divided by average assets under management.

Results detail

The following provides a comparison of our 3Q12 results versus 3Q11 (YoY) and versus 2Q12 (QoQ).

Net revenues

Asset management fees

YoY: Stable at CHF 330 million

Higher fees in alternative investments were partially offset by lower fees in traditional investments. Higher fees in alternative investments reflected the final closing of a secondary private equity fund in 1Q12 and higher average assets under management in private equity fund of funds and index solutions, partially offset by the closure and restructuring of certain product lines in 2011. Lower fees in traditional investments primarily reflected a decrease in average assets under management.

QoQ: Stable at CHF 330 million

Management fees increased slightly in alternative investments, largely from higher fees in private equity, index solutions and single manager hedge funds, and were stable in traditional investments. Average assets under management increased 1.6%.

Placement, transaction and other fees

YoY: Down 15% from CHF 66 million to CHF 56 million

The decrease primarily reflected lower private equity placement fees in 3Q12, compared to a strong 3Q11.

QoQ: Up 10% from CHF 51 million to CHF 56 million

The increase reflected higher private equity placement fees, real estate transaction fees and other fees.

Performance fees and carried interest

YoY: Down 53% from CHF 86 million to CHF 40 million

The decrease reflected lower carried interest from realized private equity gains, which in 3Q11 included significant gains from the sale of a portfolio company in the healthcare sector. Performance fees were higher relative to 3Q11 due to a claw-back of performance fees in diversified investments in 3Q11 relating to the management of the 2008 Partner Asset Facility and from higher fees in 3Q12 in single-manager hedge funds and credit strategies.

QoQ: Down 46% from CHF 74 million to CHF 40 million

The decrease was mainly due to semi-annual performance fees from Hedging-Griffo in 2Q12, partially offset by higher carried interest from realized private equity gains and higher performance fees in single-manager hedge funds.

Equity participations income

YoY: Down 57% from CHF 28 million to CHF 12 million

The decrease was primarily from lower revenues in diversified investments due to the sale of our ownership interest in Aberdeen and lower revenues in single-manager hedge funds, partially offset by higher equity income from private equity joint ventures.

QoQ: Down 56% from CHF 27 million to CHF 12 million

The decrease was primarily from lower revenues due to our sale of Aberdeen and from emerging markets participations within alternative investments.

Investment-related gains/(losses)

YoY: Up from CHF (17) million to CHF 101 million

In 3Q12, the gains of CHF 101 million reflected gains in private equity investments mainly in the energy and transport sectors and in hedge fund investments. In 3Q11, the losses of CHF 17 million reflected losses in private equity investments in the technology, energy and industrial sectors, partially offset by gains in the healthcare sector.

QoQ: Up 274% from CHF 27 million to CHF 101 million

In 3Q12, the gains of CHF 101 million reflected gains in private equity investments mainly in the energy and transport sectors and in hedge fund investments. In 2Q12, the gains of CHF 27 million reflected gains in private equity investments mainly in the commodities and financial sectors, offset in part by losses in the energy sector.

Equity participations and other gains/(losses)

YoY: Up from CHF 15 million to CHF 102 million

In 3Q12 we recognized a gain of CHF 140 million from the sale of our remaining 7.0% ownership interest in Aberdeen, partially offset by an impairment of CHF 38 million related to AMF. A gain of CHF 15 million in 3Q11 reflected a partial sale of our ownership interest in Aberdeen.

QoQ: Up 48% from CHF 69 million to CHF 102 million

In 3Q12 we recognized the gain on sale of our remaining ownership interest in Aberdeen, partially offset by the impairment related to AMF. In 2Q12 we recognized CHF 66 million from the partial sale of our ownership interest in Aberdeen and a small gain on the partial sale of a joint venture investment.

Operating expenses

Compensation and benefits

YoY: Up 4% from CHF 228 million to CHF 237 million

The increase included an adverse foreign exchange translation impact, higher deferred compensation expenses from prior-year awards and slightly higher discretionary performance-related compensation expense, partially offset by lower salaries, severance and benefits and taxes.

QoQ: Down 7% from CHF 256 million to CHF 237 million

The decrease was primarily due to lower social security taxes on share award settlements and deferred compensation expenses from prior year awards.

General and administrative expenses

YoY: Down 12% from CHF 131 million to CHF 115 million

The decrease mainly reflected lower IT-related costs and non-credit-related provisions in 3Q11.

QoQ: Down 5% from CHF 121 million to CHF 115 million

The decrease mainly reflected reductions across most expense categories in 3Q12, offset in part by the release of expense provisions in 2Q12.

Assets under management - Asset Management
	in / end of				% change		in / end of			% change
	3Q12	2Q12	3Q11		QoQ	YoY	9M12	9M11		YoY
Assets under management (CHF billion)
Alternative investments	205.1	199.1	188.3		3.0	8.9	205.1	188.3		8.9
of which hedge funds	24.2	24.8	25.6		(2.4)	(5.5)	24.2	25.6		(5.5)
of which private equity	28.5	28.9	27.2		(1.4)	4.8	28.5	27.2		4.8
of which real estate & commodities	48.8	47.8	46.5		2.1	4.9	48.8	46.5		4.9
of which credit	21.0	19.7	17.7		6.6	18.6	21.0	17.7		18.6
of which ETF	16.1	15.1	14.4		6.6	11.8	16.1	14.4		11.8
of which index strategies	61.2	58.3	50.8		5.0	20.5	61.2	50.8		20.5
of which other	5.3	4.5	6.1		17.8	(13.1)	5.3	6.1		(13.1)
Traditional investments	163.4	160.5	176.0		1.8	(7.2)	163.4	176.0		(7.2)
of which multi-asset class solutions	106.0	103.0	117.1		2.9	(9.5)	106.0	117.1		(9.5)
of which fixed income & equities	57.4	57.5	58.9		(0.2)	(2.5)	57.4	58.9		(2.5)
Diversified investments	0.4	0.9	0.9		(55.6)	(55.6)	0.4	0.9		(55.6)
Assets under management 1	368.9	360.5	365.2		2.3	1.0	368.9	365.2		1.0
Average assets under management (CHF billion)
Average assets under management	367.3	361.5	364.5		1.6	0.8	365.3	379.9		(3.8)
Assets under management by currency (CHF billion)
USD	95.8	93.5	95.9		2.5	(0.1)	95.8	95.9		(0.1)
EUR	47.5	47.3	56.0		0.4	(15.2)	47.5	56.0		(15.2)
CHF	198.9	195.1	191.9		1.9	3.6	198.9	191.9		3.6
Other	26.7	24.6	21.4		8.5	24.8	26.7	21.4		24.8
Assets under management	368.9	360.5	365.2		2.3	1.0	368.9	365.2		1.0
Growth in assets under management (CHF billion)
Net new assets 2	(0.5)	0.4	1.5		–	–	(11.5)	11.9		–
Other effects	8.9	(0.7)	(15.5)		–	–	15.2	(28.7)		–
of which market movements	10.5	(1.9)	(15.9)		–	–	22.2	(14.1)		–
of which currency	(0.6)	3.9	7.5		–	–	(1.9)	(7.6)		–
of which other	(1.0)	(2.7)	(7.1)	3	–	–	(5.1)	(7.0)	3	–
Growth in assets under management	8.4	(0.3)	(14.0)		–	–	3.7	(16.8)		–
Growth in assets under management (annualized) (%)
Net new assets	(0.6)	0.4	1.6		–	–	(4.2)	4.2		–
Other effects	9.9	(0.8)	(16.4)		–	–	5.5	(10.0)		–
Growth in assets under management	9.3	(0.4)	(14.8)		–	–	1.3	(5.8)		–
Growth in assets under management (rolling four-quarter average) (%)
Net new assets	(5.0)	(4.3)	4.1		–	–	–	–		–
Other effects	6.0	(0.7)	(8.0)		–	–	–	–		–
Growth in assets under management (rolling four-quarter average)	1.0	(5.0)	(3.9)		–	–	–	–		–
Principal investments (CHF billion)
Principal investments 4	3.6	3.7	3.2		(2.7)	12.5	3.6	3.2		12.5
1    Excludes our portion of assets under management from our former investment in Aberdeen.   2    Includes outflows for private equity assets reflecting realizations at cost and unfunded commitments on which a fee is no longer earned.   3    Includes an adjustment to present private equity assets under management at cost for invested assets and unfunded commitments only where a fee was earned. Periods prior to 3Q11 have not been restated.   4    Primarily private equity investments.

Assets under management

Assets under management as of the end of 3Q12 were CHF 368.9 billion, up 2.3% compared with 2Q12, benefiting from positive market performance. We had net asset outflows of CHF 0.5 billion in 3Q12. There were outflows of CHF 1.0 billion in traditional investments, with outflows from multi-asset class solutions and fixed income partially offset by inflows in equities, and an outflow of CHF 0.6 billion from a single mandate in diversified investments. These outflows were partially offset by inflows of CHF 1.1 billion in alternative investments, primarily from emerging markets, credit strategies and index strategies, partially offset by outflows in hedge funds. Average assets under management at CHF 367.3 billion were 1.6% higher compared to 2Q12.

Compared to 3Q11, assets under management were up 1.0%. The increase primarily reflected positive market performance and favorable foreign exchange-related movements, partially offset by net asset outflows. Average assets under management increased 0.8%.

Progress on strategy implementation

As part of the capital measures announced on July 18, 2012, we have decided to pursue the option of a sale of our ETF business in addition to the private equity businesses previously announced. We have no further plans for the divestment of businesses in Asset Management.

Assets under management

We had net asset inflows of CHF 5.3 billion during 3Q12 and assets under management of CHF 1,250.7 billion as of the end of 3Q12.

Assets under management

Assets under management reflect the changes in reporting as discussed in “Core Results – Information and developments – Changes in reporting”.

Assets under management comprise assets that are placed with us for investment purposes and include discretionary and advisory counterparty assets.

Discretionary assets are assets for which the customer fully transfers the discretionary power to a Credit Suisse entity with a management mandate. Discretionary assets are reported in the segment in which the advice is provided as well as in the segment in which the investment decisions take place. Assets managed by Asset Management for Private Banking clients are reported in both segments and eliminated at Group level.

Advisory assets include assets placed with us where the client is provided access to investment advice but retains discretion over investment decisions.

Assets under management and net new assets include assets managed by consolidated entities, joint ventures and strategic participations. Assets from joint ventures and participations are counted in proportion to our share in the respective entity.

As of the end of 3Q12, assets under management were CHF 1,250.7 billion, up CHF 37.6 billion, or 3.1%, compared to the end of 2Q12, mainly reflecting positive market performance and net new assets.

Compared to the end of 3Q11, assets under management were up CHF 99.3 billion, or 8.6%, mostly driven by positive market performance, favorable foreign exchange-related movements and net new asset inflows.

In Private Banking, assets under management were CHF 1,023.6 billion, up CHF 35.7 billion, or 3.6%, compared to the end of 2Q12, and up CHF 106.6 billion, or 11.6%, compared to the end of 3Q11. In Asset Management, assets under management were CHF 368.9 billion, up CHF 8.4 billion, or 2.3%, compared to the end of 2Q12, and up CHF 3.7 billion, stable compared to the end of 3Q11.

> Refer to “Private Banking” and “Asset Management” in I – Credit Suisse results and “Note 36 – Assets under management” in V – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2011 for further information.

Net new assets

Net new assets include individual cash payments, security deliveries and cash flows resulting from loan increases or repayments. Interest and dividend income credited to clients, commissions, interest and fees charged for banking services are not included as they do not reflect success in acquiring assets under management.

Furthermore, changes due to foreign exchange-related and market movements as well as asset inflows and outflows due to the acquisition or divestiture of businesses are not part of net new assets.

Private Banking recorded net new assets of CHF 5.2 billion in 3Q12, including CHF 5.1 billion from Wealth Management Clients, with inflows across all regions, particularly from emerging markets and from its UHNWI client segment. Asset Management recorded net asset outflows of CHF 0.5 billion in 3Q12, with inflows in alternative investments, more than offset by outflows in traditional investments and diversified strategies.

Client assets

Client assets is a broader measure than assets under management as it includes transactional and custody accounts (assets held solely for transaction-related or safekeeping/custody purposes) and assets of corporate clients and public institutions used primarily for cash management or transaction-related purposes.

Assets under management and client assets
	end of				% change
	3Q12	2Q12	4Q11	3Q11	QoQ	Ytd	YoY
Assets under management (CHF billion)
Private Banking	1,023.6	987.9	953.2	917.0	3.6	7.4	11.6
Asset Management	368.9	360.5	365.2	365.2	2.3	1.0	1.0
Assets managed by Asset Management for Private Banking clients	(141.8)	(135.3)	(133.2)	(130.8)	4.8	6.5	8.4
Assets under management	1,250.7	1,213.1	1,185.2	1,151.4	3.1	5.5	8.6
of which discretionary assets	406.1	391.6	390.2	390.6	3.7	4.1	4.0
of which advisory assets	844.6	821.5	795.0	760.8	2.8	6.2	11.0
Client assets (CHF billion)
Private Banking	1,236.6	1,195.6	1,159.4	1,115.2	3.4	6.7	10.9
Asset Management	368.9	360.5	365.2	365.2	2.3	1.0	1.0
Assets managed by Asset Management for Private Banking clients	(141.8)	(135.3)	(133.2)	(130.8)	4.8	6.5	8.4
Client assets	1,463.7	1,420.8	1,391.4	1,349.6	3.0	5.2	8.5

Growth in assets under management
in	3Q12	2Q12	3Q11		9M12	9M11
Growth in assets under management (CHF billion)
Private Banking	5.2	3.4	7.3		16.5	35.2
Asset Management 1	(0.5)	0.4	1.5		(11.5)	11.9
Assets managed by Asset Management for Private Banking clients	0.6	0.6	(0.8)		(1.0)	(5.0)
Net new assets	5.3	4.4	8.0		4.0	42.1
Private Banking	30.5	1.0	(33.3)		53.9	(77.2)
Asset Management	8.9	(0.7)	(15.5)	2	15.2	(28.7)	2
Assets managed by Asset Management for Private Banking clients	(7.1)	3.6	5.9		(7.6)	9.9
Other effects	32.3	3.9	(42.9)		61.5	(96.0)
Private Banking	35.7	4.4	(26.0)		70.4	(42.0)
Asset Management	8.4	(0.3)	(14.0)		3.7	(16.8)
Assets managed by Asset Management for Private Banking clients	(6.5)	4.2	5.1		(8.6)	4.9
Total growth in assets under management	37.6	8.3	(34.9)		65.5	(53.9)
Growth in assets under management (annualized) (%)
Private Banking	2.1	1.4	3.1		2.3	4.9
Asset Management	(0.6)	0.4	1.6		(4.2)	4.2
Assets managed by Asset Management for Private Banking clients	(1.8)	(1.7)	2.4		1.0	4.9
Net new assets	1.7	1.5	2.7		0.4	4.7
Private Banking	12.4	0.4	(14.1)		7.5	(10.7)
Asset Management	9.9	(0.8)	(16.4)		5.5	(10.0)
Assets managed by Asset Management for Private Banking clients	21.0	(10.3)	(17.4)		7.6	(9.7)
Other effects	10.7	1.3	(14.5)		7.0	(10.7)
Private Banking	14.5	1.8	(11.0)		9.8	(5.8)
Asset Management	9.3	(0.4)	(14.8)		1.3	(5.8)
Assets managed by Asset Management for Private Banking clients	19.2	(12.0)	(15.0)		8.6	(4.8)
Total growth in assets under management	12.4	2.8	(11.8)		7.4	(6.0)
Growth in net new assets (rolling four-quarter average) (%)
Private Banking	2.6	2.8	4.4		–	–
Asset Management	(5.0)	(4.3)	4.1		–	–
Assets managed by Asset Management for Private Banking clients	(2.1)	(1.0)	3.5		–	–
Growth in net new assets	0.7	0.9	4.4		–	–
1    Includes outflows for private equity assets reflecting realizations at cost and unfunded commitments on which a fee is no longer earned.   2    Includes an adjustment to present private equity assets under management at cost for invested assets and unfunded commitments only where a fee was earned. Periods prior to 3Q11 have not been restated.

Treasury, risk, balance sheet and off-balance sheet

Treasury management

Risk management

Balance sheet and off-balance sheet

Treasury management

During 3Q12, we continued to maintain a strong liquidity and funding position. Our proactive approach to capital management resulted in an increase in our Basel II.5 core tier 1 ratio to 14.7% as of the end of 3Q12 compared to 12.5% as of the end of 2Q12.

Liquidity and funding management

Overview

Securities for funding and capital purposes are issued primarily by the Bank, our principal operating subsidiary and a US registrant. The Bank lends funds to its operating subsidiaries and affiliates on both a senior and subordinated basis, as needed; the latter typically to meet capital requirements, or as desired by management to support business initiatives.

Our internal liquidity risk management framework as agreed with FINMA has been subject to review and monitoring by FINMA, other regulators and rating agencies for many years. Moreover, our liquidity risk management principles and framework are in line with the Basel III liquidity framework.

> Refer to “Treasury management” in III – Treasury, Risk, Balance sheet and Off-balance sheet in the Credit Suisse Annual Report 2011 for further information on liquidity and funding management.

Liquidity risk management framework

Our liquidity and funding policy is designed to ensure that funding is available to meet all obligations in times of stress, whether caused by market events or issues specific to Credit Suisse. We achieve this through a conservative asset/liability management strategy aimed at maintaining long-term funding, including stable deposits, well in excess of illiquid assets. To address short-term liquidity stress, we maintain a liquidity buffer that covers unexpected outflows in the event of severe market and idiosyncratic stress. The assets included in the liquidity buffer consist primarily of cash placed with central banks and high-quality sovereign bonds obtained through outright purchase or reverse repurchase transactions. Our liquidity risk parameters reflect various liquidity stress assumptions, which we believe are conservative. We manage our liquidity profile at a sufficient level such that, in the event that we are unable to access unsecured funding, we will have sufficient liquidity to sustain operations for an extended period of time in excess of our minimum target.

The BCBS has issued the Basel III international framework for liquidity risk measurement, standards and monitoring. The framework includes a liquidity coverage ratio (LCR) and a net stable funding ratio (NSFR). The LCR, which is expected to be introduced January 1, 2015 following an observation period which began in 2011, addresses liquidity risk over a 30-day period. The NSFR, which is expected to be introduced January 1, 2018 following an observation period which began in 2012, establishes criteria for a minimum amount of stable funding based on the liquidity of a bank’s assets and activities over a one-year horizon. The BCBS has stated that it will review the effect of these liquidity standards on financial markets, credit extension and economic growth to address unintended consequences.

The LCR aims to ensure that banks have a stock of unencumbered high-quality liquid assets available to meet liquidity needs for a 30-day time horizon under a severe stress scenario. The LCR is comprised of two components: the value of the stock of high quality liquid assets in stressed conditions and the total net cash outflows calculated according to specified scenario parameters. The ratio of liquid assets over net cash outflows should always be at least 100%.

The NSFR is intended to ensure banks maintain a structurally sound long-term funding profile beyond one year and is a complementary measure to the LCR. The NSFR is structured to ensure that illiquid assets are funded with an appropriate amount of stable long-term funds. The standard is defined as the ratio of available stable funding over the amount of required stable funding and should always be at least 100%.

Although the NSFR is not expected to be introduced until 2018 and is still subject to adjustment by the BCBS and FINMA, we are now using the NSFR as the primary tool (while continuing to also model alternative scenarios) to monitor our structural liquidity position, to plan funding and as the basis for our funds transfer pricing policy. We estimate that our NSFR under the current FINMA framework is in excess of 100% as of the end of 3Q12, which is our target for the end of 2013. Where requirements are unclear or left to be determined by national regulators, we have made our own interpretation to arrive at the current result.

> Refer to “Debt issuances and redemptions” for further information on our liability management activities.

Funding sources and uses

We primarily fund our balance sheet through core customer deposits, long-term debt and shareholders’ equity. A substantial portion of our balance sheet is match funded and requires no unsecured funding. Match funded balance sheet items consist of assets and liabilities with close to equal liquidity durations and values so that the liquidity and funding generated or required by the positions are substantially equivalent. Cash and due from banks is highly liquid. A significant part of our assets, principally unencumbered trading assets that support the securities business, is comprised of securities inventories and collateralized receivables, which fluctuate and are generally liquid. These liquid assets are available to settle short-term liabilities. These assets include our buffer of CHF 146 billion, stable compared to 2Q12, consisting of cash, securities accepted under central bank facilities and other highly liquid unencumbered securities, which can be monetized in a time frame consistent with our short-term stress assumptions. Loans, which comprise the largest component of our illiquid assets, are funded by our core customer deposits, with an excess coverage of 23% as of the end of 3Q12, up from 22% in 2Q12. We fund other illiquid assets, including real estate, private equity and other long-term investments and a haircut for the illiquid portion of securities, with long-term debt and equity, where we try to maintain a substantial funding buffer.

Our core customer deposits totaled CHF 292 billion as of the end of 3Q12, compared to CHF 285 billion as of the end of 2Q12 as a result of a growth in the customer deposit base in Private Banking. Core customer deposits are from clients with whom we have a broad and longstanding relationship. Core customer deposits exclude deposits from banks and certificates of deposits. We place a priority on maintaining and growing customer deposits, as they have proved to be a stable and resilient source of funding even in difficult market conditions. Our core customer deposit funding is supplemented by the issuance of long-term debt.

> Refer to the chart “Balance sheet funding structure” for further information.

Debt issuances and redemptions

Our capital markets debt includes senior and subordinated debt issued in US-registered offerings and medium-term note programs, euro market medium-term note programs, Australian dollar domestic medium-term note programs, a Samurai shelf registration statement in Japan and covered bond programs. As a global bank, we have access to multiple markets worldwide and our major funding centers are Zurich, New York, London and Tokyo.

We use a wide range of products and currencies to ensure that our funding is efficient and well diversified across markets and investor types. Substantially all of our unsecured senior debt is issued without financial covenants, such as adverse changes in our credit ratings, cash flows, results of operations or financial ratios, which could trigger an increase in our cost of financing or accelerate the maturity of the debt.

The percentage of unsecured funding from long-term debt, excluding non-recourse debt associated with the consolidation of variable interest entities (VIEs), was 24% as of the end of 3Q12, compared to 25% as of the end of 2Q12.

In 3Q12, the Bank issued CHF 188 million of senior debt and CHF 407 million of domestic covered bonds. Senior debt of CHF 2.4 billion and domestic covered bonds of CHF 202 million matured in 3Q12. In connection with our tender offer in July 2012, we repurchased CHF 1.8 billion of senior debt. As of September 30, 2012, we had CHF 15.1 billion of domestic and international covered bonds outstanding.

The weighted average maturity of long-term debt was 6.3 years (including certificates of deposits with a maturity of one year or longer, but excluding structured notes, and assuming callable securities are redeemed at final maturity, or in 2030 for instruments without a stated final maturity).

Credit ratings

The maximum impact of a simultaneous one, two or three-notch downgrade by all three major rating agencies in the Bank’s long-term debt ratings would result in additional collateral requirements or assumed termination payments under certain derivative instruments of CHF 1.6 billion, CHF 3.4 billion and CHF 4.0 billion, respectively, as of 3Q12, and would not be material to our liquidity and funding planning. If the downgrade does not involve all three rating agencies, the impact may be smaller.

As of the end of 3Q12, we were compliant with the requirements related to maintaining a specific credit rating under these derivative instruments.

> Refer to “Credit ratings” in III – Treasury, Risk, Balance sheet and Off-balance sheet – Treasury management – Liquidity and funding management in the Credit Suisse Annual Report 2011 for further information.

Capital management

Capital management framework

Our capital management framework is intended to ensure that there is sufficient capital to support our underlying risks and to achieve management’s regulatory and credit rating objectives.

In January 2011, as required by FINMA, Credit Suisse implemented BCBS’s “Revisions to the Basel II market risk framework” (Basel II.5), for FINMA regulatory capital purposes, with some additional requirements for large Swiss banks known as “Swiss Finish”.

> Refer to “Capital management” in III – Treasury, Risk, Balance sheet and Off-balance sheet – Treasury management in the Credit Suisse Annual Report 2011 for further information on Credit Suisse’s capital management framework, regulatory capital and risk-weighted assets (RWA).

Risk-weighted assets

Our balance sheet positions and off-balance sheet exposures translate into RWA that are categorized as market, credit, operational and non-counterparty risk RWA. Market risk RWA reflect the capital requirements of potential changes in the fair values of financial instruments in response to market movements inherent in both the balance sheet and the off-balance sheet items. Credit risk RWA reflect the capital requirements for the possibility of a loss being incurred as the result of a borrower or counterparty failing to meet its financial obligations or as a result of a deterioration in the credit quality of the borrower or counterparty. Operational risk RWA reflect the capital requirements for the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. Non-counterparty-risk RWA primarily reflect the capital requirements for our premises and equipment. It is not the nominal size, but the nature (including risk mitigation such as collateral or hedges) of the balance sheet positions or off-balance sheet positions that determines the RWA.

Risk measurement models

Within the Basel II.5 framework for FINMA regulatory capital purposes, we implemented new risk measurement models, including an incremental risk charge and stressed Value-at-Risk (VaR). The incremental risk charge is a regulatory capital charge for default and migration risk on positions in the trading books and is intended to complement additional standards being applied to the VaR modeling framework, including stressed VaR. Stressed VaR replicates a VaR calculation on the Group’s current portfolio taking into account a one-year observation period relating to significant financial stress and helps reduce the pro-cyclicality of the minimum capital requirements for market risk.

FINMA, in line with the Bank for International Settlements (BIS) requirements, uses a multiplier to impose an increase in market risk capital for every regulatory VaR backtesting exception over four in the prior rolling 12-month period. For the purposes of this measurement, backtesting exceptions are calculated using a subset of actual daily trading revenues that includes only the impact of daily movements in financial market variables such as interest rates, equity prices and foreign exchange rates on the previous night’s positions. In 3Q12, our market risk capital multiplier remained at FINMA and BIS minimum levels and we did not experience an increase in market risk capital.

With FINMA approval, we have implemented a Comprehensive Risk Measure framework to calculate a capital charge covering all price risks (default, spread and correlation risk) within the credit correlation products within our trading book portfolio.

> Refer to “Market risk” in Risk management for further information on Credit Suisse’s risk measurement models and backtesting exceptions.

Progress made on capital measures in 3Q12

On July 18, 2012, we announced a number of measures described below to accelerate the strengthening of our capital position in light of the current regulatory and market environment, including the implementation of the Swiss “Too Big to Fail” legislation as determined by FINMA under the Basel III framework. During 3Q12, we made significant progress in implementing the July 2012 capital measures, achieving CHF 12.8 billion of the CHF 15.3 billion target.

As discussed below, the majority of the measures have a capital benefit for common equity tier 1 (CET1) capital. Certain measures only impact Swiss Core Capital. In aggregate, all of the measures impact Swiss Total Capital. Capital benefits consist of changes in equity, gains on sales, reduced deductions and RWA relief.

The definitions of regulatory capital and capital ratios mentioned below refer to the Swiss “Too Big to Fail” legislation as determined by FINMA. Ratio calculations based on these capital definitions use projected Basel III year-end 2012 RWA. The expected year-end 2012 ratios are based on a pro-forma calculation assuming successful completion of the July 2012 capital measures and using the Bloomberg consensus net income estimate and our Basel III RWA estimates.

> Refer to “Capital ratio simulations” for definition of capital ratios.

Mandatory and contingent convertible securities

In July 2012, we issued CHF 3.8 billion mandatory and contingent convertible securities (MACCS) that are mandatorily convertible into 233.5 million shares at a conversion price of CHF 16.29 per share on March 29, 2013 (subject to early conversion upon certain contingency and viability events). Strategic and institutional investors purchased CHF 2.0 billion of MACCS and shareholders exercised preferential subscription rights for CHF 1.8 billion of MACCS, resulting in a CET1 capital benefit of CHF 3.6 billion, net of fees and interest.

Adjustable Performance Plan awards exchange

In 3Q12, we completed a voluntary exchange offer under which certain employees elected to convert any future cash payments from deferred compensation awards under the Adjustable Performance Plan awards for shares at the same price as the conversion price under the MACCS. The exchange resulted in a CET1 capital benefit of CHF 0.5 billion estimated in respect of full-year 2012. This represents a conversion rate of approximately 50%. The actual amount of the capital benefit depends on the Group’s financial performance for the remainder of 2012.

Tender offer

In 3Q12, we completed a tender offer to repurchase certain outstanding public capital and senior funding instruments. This transaction followed a similar transaction completed in April 2012. Through the tender offer, in combination with certain additional repurchase transactions, we repurchased for CHF 4.8 billion outstanding tier 1 and tier 2 instruments and senior debt, resulting in a CET1 capital benefit of CHF 0.4 billion.

Real estate sales

In July 2012, we announced real estate sales that would contribute CHF 0.5 billion of capital. We have since increased this target to CHF 0.8 billion. In 3Q12, we sold real estate properties resulting in a CET1 capital benefit of CHF 0.4 billion. We are in advanced negotiations for additional real-estate disposals, including a significant sale-and-lease-back transaction.

Sale of residual stake in Aberdeen Asset Management

We completed the sale of our residual stake in Aberdeen Asset Management in July 2012 for a CET1 capital benefit of CHF 0.2 billion.

Strategic divestments

In line with the accelerated implementation of our strategy toward a more liquid alternatives business and given the residual uncertainty regarding the implementation of the “Volcker Rule”, we intend to sell certain businesses within Asset Management, adding an estimated CET1 capital benefit of CHF 1.1 billion. These businesses include, in addition to private equity businesses, the potential sale of our ETF business. We made progress on these measures in 3Q12, adding a CET1 capital benefit of CHF 0.3 billion, primarily related to our redemptions of investments in funds.

We expect an additional estimated CET1 capital benefit of CHF 0.9 billion on these measures by the end of 2012.

Earnings-related effects

Earnings-related effects had a CET1 capital benefit of CHF 0.5 billion in 3Q12. Positive earnings for the remainder of 2012 are expected to have an additional capital benefit on our capital position by the end of 2012. Using analysts’ consensus net income as published by Bloomberg, adjusted for our actual results in the first nine months of the year and fair value losses on own debt in 3Q12 and the capital effect of share-based compensation awards, we expect earnings-related effects to add a CET1 capital benefit of CHF 0.8 billion in 4Q12.

Lower capital deductions

In July 2012, we estimated that the July 2012 capital measures would decrease our regulatory deductions by CHF 3.0 billion by the end of 2012, but we have since increased the total reduction estimate to CHF 3.5 billion by the end of 2012.

In 3Q12, our capital measures led to a CHF 2.8 billion decrease in our regulatory capital deductions, including decreased deductions from lower deferred tax assets on net operating losses in 3Q12. As a result, we had a corresponding CET1 capital benefit of CHF 2.8 billion in 3Q12.

> Refer to “Note 20 – Tax” in – III Condensed consolidated financial statements – unaudited for further information on deferred tax assets.

The July 2012 capital measures are expected to reduce regulatory capital deductions by a further CHF 0.7 billion and add a CET1 capital benefit of the same amount in 4Q12.

Tier 1 participation securities recognition

In 2008 and 2010, the Bank issued tier 1 participation securities to “Claudius”, a third-party special purpose entity (SPE) which, in turn, issued perpetual, non-cumulative, secured notes to investors. FINMA has ruled that under the Swiss “Too Big to Fail” regime, the existing USD 3.0 billion in tier 1 participation securities (with a haircut of 20%) will qualify as part of the Swiss equity requirement in excess of the 8.5% Basel III Global Systemically Important Bank (G-SIB) CET1 ratio. This resulted in a Swiss Core Capital benefit of CHF 2.3 billion until the earlier of redemption or 2018 on a non-reducing basis.

Accelerated hybrids exchange

In July 2012, we exchanged a portion of our US dollar-denominated existing tier 1 capital notes issued in 2008 (hybrids) into high trigger tier 1 buffer capital notes (BCNs), thereby accelerating an exchange initially scheduled for October 2013. The conversion floor price of the BCNs delivered in the exchange (as well as the remaining BCNs scheduled to be delivered in 2013) has been adjusted to the conversion price of the MACCS described above. The BCNs qualify for a Swiss Total Capital benefit of CHF 1.6 billion, based on the US dollar exchange rate as of the end of 3Q12, net of fees.

Leverage ratios
	Group				Bank
end of	3Q12	2Q12	4Q11	% change QoQ	3Q12	2Q12	4Q11	% change QoQ
Tier 1 capital (CHF billion)
Tier 1 capital	43.3	38.5	36.8	12	39.3	35.6	35.1	10
Adjusted average assets (CHF billion)  1
Average assets	1,068	1,054	1,038	1	1,052	1,039	1,024	1
Adjustments:
Assets from Swiss lending activities 2	(148)	(147)	(145)	1	(126)	(125)	(123)	1
Cash and balances with central banks	(77)	(77)	(81)	0	(76)	(77)	(81)	(1)
Other	(11)	(12)	(15)	(8)	(10)	(11)	(14)	(9)
Adjusted average assets	832	818	797	2	840	826	806	2
Leverage ratio (%)
Leverage ratio	5.2	4.7	4.6	11	4.7	4.3	4.4	9
1    Calculated as the average of the month-end values for the previous three calendar months.   2    Excludes Swiss interbank lending.

Leverage ratios

For FINMA regulatory capital purposes, both the Group and the Bank must maintain a minimum leverage ratio of tier 1 capital to total adjusted average assets (on a non-risk-weighted basis) of 3% at the Group and Bank consolidated level and 4% at the Bank on an unconsolidated basis by 2013.

The leverage ratios for the Group and Bank were 5.2% and 4.7%, respectively, as of the end of 3Q12, compared to 4.7% and 4.3% as of the end of 2Q12. The increased leverage ratios compared to 2Q12 reflected higher tier 1 capital.

BIS statistics (Basel II.5)
	Group					Bank
end of	3Q12		2Q12	4Q11	% change QoQ	3Q12		2Q12	4Q11	% change QoQ
Eligible capital (CHF million)
Total shareholders' equity	35,682		34,774	33,674	3	34,729		29,784	29,403	17
Goodwill and intangible assets	(8,884)		(8,940)	(8,876)	(1)	(7,995)		(8,054)	(7,979)	(1)
Qualifying noncontrolling interests	3,236		3,245	3,365	0	4,297		4,334	4,476	(1)
Capital deductions 50% from tier 1	(1,799)		(1,875)	(2,274)	(4)	(1,753)		(1,835)	(2,242)	(4)
Other adjustments	6,125	1	1,912	67	220	1,088		1,982	552	(45)
Core tier 1 capital	34,360		29,116	25,956	18	30,366		26,211	24,210	16
Hybrid tier 1 instruments 2	8,897	3	9,396	10,888	(5)	8,897	3	9,396	10,888	(5)
Tier 1 capital	43,257		38,512	36,844	12	39,263		35,607	35,098	10
Upper tier 2	277		879	1,841	(68)	287		924	1,925	(69)
Lower tier 2	7,831		9,714	12,243	(19)	9,437		10,973	13,609	(14)
Capital deductions 50% from tier 2	(1,799)		(1,875)	(2,274)	(4)	(1,753)		(1,835)	(2,242)	(4)
Tier 2 capital	6,309		8,718	11,810	(28)	7,971		10,062	13,292	(21)
Total eligible capital	49,566		47,230	48,654	5	47,234		45,669	48,390	3
Risk-weighted assets (CHF million)
Credit risk	151,126		147,233	157,237	3	141,763		137,929	148,378	3
Market risk	30,792		35,363	40,609	(13)	30,764		35,322	40,571	(13)
Non-counterparty risk	7,141		7,334	7,819	(3)	6,887		7,086	7,564	(3)
Operational risk	44,450		43,775	36,088	2	44,450		43,775	36,088	2
Risk-weighted assets	233,509		233,705	241,753	0	223,864		224,112	232,601	0
Capital ratios (%)
Core tier 1 ratio	14.7		12.5	10.7	–	13.6		11.7	10.4	–
Tier 1 ratio	18.5		16.5	15.2	–	17.5		15.9	15.1	–
Total capital ratio	21.2		20.2	20.1	–	21.1		20.4	20.8	–
1    Includes Mandatory and Contingent Convertible Securities net of fees and interest of CHF 3.6 billion, an adjustment for the accounting treatment of pension plans of CHF 2.8 billion and cumulative fair value adjustments of CHF (0.3) billion on own vanilla debt and structured notes, net of tax.   2    Non-cumulative perpetual preferred securities and capital notes. FINMA has advised that the Group and the Bank may continue to include as tier 1 capital CHF 34 million and CHF 1.7 billion, respectively, in 3Q12 (2Q12: CHF 0.5 billion and CHF 3.0 billion, respectively; 4Q11: CHF 0.6 billion and CHF 3.2 billion, respectively) of equity from special purpose entities that are deconsolidated under US GAAP.   3    FINMA has advised that a maximum of 35% of tier 1 capital can be in the form of hybrid capital instruments, which will be phased out under Basel III. Hybrid tier 1 capital represented 19.7% and 21.7% of the Group's and the Bank's adjusted tier 1 capital, respectively, as of the end of 3Q12.

Regulatory capital – Group

Our tier 1 ratio was 18.5% as of the end of 3Q12 compared to 16.5% as of the end of 2Q12, reflecting increased tier 1 capital and stable RWA. Our core tier 1 ratio was 14.7% as of the end of 3Q12 compared to 12.5% as of the end of 2Q12, reflecting higher core tier 1 capital and stable RWA. Our total capital ratio was 21.2% as of the end of 3Q12 compared to 20.2% as of the end of 2Q12.

Tier 1 capital was CHF 43.3 billion as of the end of 3Q12 compared to CHF 38.5 billion as of the end of 2Q12, reflecting the issuance of MACCS, net income (excluding the impact of fair value gains/(losses) on Credit Suisse debt, net of tax) and the net effect of share-based compensation including the Adjustable Performance Plan awards conversion. These increases were partially offset by the July 2012 tender offer in combination with certain other repurchase transactions and a negative foreign exchange translation impact. Tier 2 capital was CHF 6.3 billion as of the end of 3Q12 compared to CHF 8.7 billion as of the end of 2Q12, primarily reflecting the impact of the tender offer and other repurchases. Total eligible capital as of the end of 3Q12 was CHF 49.6 billion compared to CHF 47.2 billion as of the end of 2Q12.

Tier 1 capital movement
	3Q12		2Q12	4Q11
Tier 1 capital (CHF million)
Balance at beginning of period	38,512		36,668	34,967
Net income	254		788	(637)
Adjustments for fair value gains/(losses) reversed for regulatory purposes, net of tax	960		(61)	(261)
Foreign exchange impact on tier 1 capital	(164)		851	652
Other	3,695	1	266	2,123
Balance at end of period	43,257		38,512	36,844
1    Reflects the issuance of the Mandatory and Contingent Convertible Securities, issuance and redemption of tier 1 capital, the effect of share-based compensation and the change in regulatory deductions.

RWA were stable at CHF 233.5 billion as of the end of 3Q12, primarily reflecting a decrease in market risk partly offset by an increase in credit risk. In addition, there was a marginal decrease resulting from a foreign exchange translation impact that was offset by a corresponding marginal increase in operational risk following minor updates to loss parameters.

The decrease in market risk was primarily driven by reductions in the incremental risk charge resulting from incorporating sovereign risk that was previously a fixed regulatory add on into the risk model, and by risk reductions in stressed VaR particularly in foreign exchange products. Market risk also decreased following our implementation of a Comprehensive Risk Measure framework covering the credit correlation products within our trading book portfolio. The increase in credit risk reflected increases in Investment Banking driven primarily by increased leveraged finance exposures, increased corporate lending within Private Banking and an increase in other asset balances within the Corporate Center, primarily related to taxable gains on transfers of assets within the consolidated Group.

> Refer to the table “BIS statistics (Basel II.5)” for further information.

> Refer to https://www.credit-suisse.com/investment_banking /financial_regulatory/en/subsidiaries_pillar_3.jsp for further information on capital ratios of certain significant subsidiaries.

As of the end of 3Q12, we had CHF 3.2 billion of qualifying noncontrolling interests. In addition, we had CHF 8.9 billion of hybrid tier 1 instruments, of which CHF 0.3 billion were innovative instruments. The hybrid tier 1 instruments currently include USD 1.7 billion 11% tier 1 capital notes and CHF 2.5 billion 10% tier 1 capital notes that are expected to be exchanged for tier 1 BCNs on October 23, 2013, the first call date of the tier 1 capital notes. USD 1.7 billion tier 1 capital notes were exchanged for tier 1 BCNs in July 2012.

> Refer to “Capital issuances and redemptions” in III – Treasury, Risk, Balance sheet and Off-balance sheet – Treasury management – Capital management in the Credit Suisse Annual Report 2011 for further information.

Risk-weighted assets by division (Basel II.5)
end of	3Q12	2Q12	4Q11	QoQ	Ytd
Risk-weighted assets by division (CHF million)
Private Banking	75,952	75,074	71,841	1	6
Investment Banking	129,436	132,668	145,163	(2)	(11)
Asset Management	12,904	13,007	12,071	(1)	7
Corporate Center	15,217	12,956	12,678	17	20
Risk-weighted assets	233,509	233,705	241,753	0	(3)
For management purposes, the Group allocates to the divisions risk-weighted asset equivalents related to regulatory capital and certain intangible asset deductions from Group tier 1 capital.

Capital
	end of				% change
	3Q12	2Q12	4Q11	3Q11	QoQ	Ytd	YoY
Shareholders' equity (CHF million)
Common shares	53	51	49	48	4	8	10
Additional paid-in capital	23,273	21,930	21,796	21,159	6	7	10
Retained earnings	28,025	27,771	27,053	27,804	1	4	1
Treasury shares, at cost	(471)	(66)	(90)	0	–	423	–
Accumulated other comprehensive income/(loss)	(15,198)	(14,912)	(15,134)	(15,492)	2	0	(2)
Total shareholders' equity	35,682	34,774	33,674	33,519	3	6	6
Goodwill	(8,603)	(8,665)	(8,591)	(8,361)	(1)	0	3
Other intangible assets	(281)	(278)	(288)	(269)	1	(2)	4
Tangible shareholders' equity 1	26,798	25,831	24,795	24,889	4	8	8
Shares outstanding (million)
Common shares issued	1,320.1	1,286.6	1,224.3	1,203.0	3	8	10
Treasury shares	(27.4)	(3.5)	(4.0)	0.0	–	–	–
Shares outstanding	1,292.7	1,283.1	1,220.3	1,203.0	1	6	7
Par value (CHF)
Par value	0.04	0.04	0.04	0.04	0	0	0
Book value per share (CHF)
Total book value per share	27.60	27.10	27.59	27.86	2	0	(1)
Goodwill per share	(6.66)	(6.75)	(7.04)	(6.95)	(1)	(5)	(4)
Other intangible assets per share	(0.21)	(0.22)	(0.23)	(0.22)	(5)	(9)	(5)
Tangible book value per share 1	20.73	20.13	20.32	20.69	3	2	0
1    Management believes that tangible shareholders' equity and tangible book value per share, both non-GAAP financial measures, are meaningful as they are measures used and relied upon by industry analysts and investors to assess valuations and capital adequacy.

Capital issuances and redemptions

As part of the capital measures described above, in 3Q12, we issued CHF 3.8 billion MACCS that are mandatorily convertible into 233.5 million shares at a conversion price of CHF 16.29 per share on March 29, 2013 (subject to early conversion upon certain contingency and viability events). We also exchanged USD 1.7 billion of existing tier 1 capital notes issued in 2008 (hybrids) into tier 1 BCNs, thereby accelerating an exchange initially scheduled for October 2013.

In connection with our tender offer in July 2012 and additional repurchase transactions, we repurchased tier 1 securities of CHF 0.5 billion and tier 2 securities of CHF 2.2 billion.

Total shareholders’ equity

Our total shareholders’ equity increased to CHF 35.7 billion as of the end of 3Q12 compared to CHF 34.8 billion as of the end of 2Q12. Total shareholders’ equity was impacted by the effect of share-based compensation, including the Adjustable Performance Plan awards conversion, the issuance of common shares used to settle the purchase of Hedging-Griffo and net income. These increases were offset by treasury share purchases and sales and the impact of foreign exchange-related movements on cumulative translation adjustments.

> Refer to the “Consolidated statements of changes in equity (unaudited)” in III – Condensed consolidated financial statements – unaudited for further information on shareholders’ equity.

Regulatory capital developments and proposals

The BCBS issued the Basel III framework, with higher minimum capital requirements and new conservation and countercyclical buffers, revised risk-based capital measures, a leverage ratio and liquidity standards. Prior to its issuance, the proposed BCBS framework was endorsed by the Group of Twenty Finance Ministers and Central Bank Governors (G-20) in November 2010. Each G-20 nation will need to implement the rules, and stricter or different requirements may be adopted by any G-20 nation. The framework was designed to strengthen the resilience of the banking sector. The new capital standards and capital buffers will require banks to hold more capital, mainly in the form of common equity. The new capital standards will be phased in from January 1, 2013 through January 1, 2019.

The Swiss “Too Big to Fail” legislation relating to big banks became effective March 1, 2012. The legislation includes capital and liquidity requirements and rules regarding risk diversification and emergency plans designed to maintain systemically important functions even in the event of threatened insolvency. The legislation on capital requirements builds on Basel III, but goes beyond its minimum standards, requiring the Group and the Bank to have common equity of at least 10% of RWA and contingent capital or other qualifying capital of another 9% of RWA by January 1, 2019.

On June 1, 2012, the Swiss Federal Council adopted implementing ordinances under the “Too Big to Fail” legislation and with regard to the implementation of Basel III into Swiss law. Effective upon adoption, the ordinances imposed a supplemental countercyclical buffer of up to 2.5% of RWA that can be activated during periods of excess credit growth and subsequently deactivated by the Federal Council upon request of the SNB after consultation with FINMA. Also effective upon adoption were increased lending standards for new residential mortgages. The remaining June ordinance requirements will become effective January 1, 2013, with some being phased in through the end of 2018.

On September 18, 2012, the Swiss Parliament adopted further implementing ordinances related to the “Too Big to Fail” legislation. The ordinances will be effective January 1, 2013 and include requirements particular to systemically relevant banks, including specific capital, leverage, large exposure and Recovery and Resolution Plan requirements.

Under the September 2012 ordinances, the Group and the Bank will have to comply with an additional leverage ratio applicable to Swiss systemically relevant banks effective January 1, 2013. This leverage ratio has to be at least 24% of the percentage points of each of the minimum, buffer and progressive capital requirements. Since the ratio is defined by reference to capital requirements subject to transitional arrangements, the new leverage ratio will be phased in from 2013 to 2018.

A liquidity-related implementing ordinance under the “Too Big to Fail” legislation remains pending, part of which is expected to be completed by year-end 2012 and entered into force on January 1, 2013, with further quantitative requirements specific to systemically relevant banks expected to be approved by Parliament and become effective in the first half of 2013. The further quantitative requirements are expected to be based on an existing agreement reached with FINMA.

Credit Suisse believes that it can meet the new requirements within the prescribed time frames.

> Refer to “Regulatory capital developments and proposals” in III – Treasury, Risk, Balance sheet and Off-balance sheet – Treasury management and “Regulation and supervision” in I – Information on the company in the Credit Suisse Annual Report 2011 for further information, including BCBS Basel III phase-in arrangements.

Capital ratio simulations

The definitions of regulatory capital and capital ratios mentioned below refer to the Swiss “Too Big to Fail” legislation as determined by FINMA. Ratio calculations based on these capital definitions use projected Basel III year-end 2012 RWA. The expected year-end 2012 ratios are based on a pro-forma calculation assuming successful completion of the July 2012 capital measures and using Bloomberg consensus net income estimate and our Basel III RWA estimates.

As Basel III will not be implemented before January 1, 2013, we have calculated our Basel III RWA and capital for purposes of this report in accordance with the currently proposed requirements and our current interpretation of such requirements, including relevant assumptions. Changes in the actual implementation of Basel III would result in different numbers from those shown in this report.

Accordingly, our calculations are based on our current expectations and forecasts about future events, including our ability to utilize net deferred tax assets on net operating losses, our assumption of successful completion of the July 2012 capital measures, analyst consensus forecasts in the case of earnings, and an assumption that dividends will remain constant from the amount paid in respect of 2011 and that the total amount of the dividend to be paid in respect of 2012 will be paid in shares, as well as our current interpretation of proposed requirements. As a result, information with regard to the simulated capital ratios is subject to uncertainties that could cause our actual capital ratios to differ.

Basel III common equity tier 1 (CET1) ratio simulation

We have updated our simulation to reflect recent developments, including the progress made on the July 2012 capital measures. With regard to Basel III RWA, we maintained our earlier guidance for year-end 2012 of CHF 300 billion, which reflects current foreign exchange rates and estimates for Basel III treatment. Compared to Basel II.5 RWA, we now estimate the RWA increase due to Basel III on January 1, 2013 to be CHF 73 billion. We expect to reduce Basel III RWA by January 1, 2013 by approximately CHF 7 billion, primarily in Investment Banking. The RWA reduction reflects our evolving strategy, including the RWA reduction in fixed income.

As of January 1, 2013, we expect a Basel III CET1 ratio of 13.6%, down from 13.9% compared to our 2Q12 simulation. The following presentation is consistent with the phase-in requirements of Basel III.

CET1 ratio simulation
Capital development (CHF billion)
Total shareholders' equity – September 30, 2012	35.7
Own debt gains and other deductions 1	(0.5)
Mandatory and contingent convertible securities 2	3.6
CET1 capital – September 30, 2012	38.8
Consensus net income 2012 3	0.5
Capital measures 4	1.1
Share-based compensation	0.3
CET1 capital – January 1, 2013	40.7
Risk-weighted assets (RWA) development (CHF billion)
RWA (Basel II.5) – September 30, 2012	234
Estimated Basel III changes	73
RWA (Basel III before reduction)	307
Reduction of RWA	(7)
RWA (Basel III) – January 1, 2013 5	300
Capital ratio (%)
CET1 ratio - January 1, 2013	13.6
Based on a pro-forma calculation assuming successful completion of the July 2012 capital measures. Actual results may differ. Rounding differences may occur.
1    Includes fair value changes from movements in spreads on our own vanilla debt and structured notes, net of tax.   2    Consists of CHF 3.8 billion of mandatory and contingent convertible securities, net of fees and interest.   3    Bloomberg consensus net income estimate for 2012 (adjusted for actual 9M12 net income and fair value losses on own debt for 3Q12) is not endorsed or verified and is used solely for illustrative purposes. Actual net income may differ significantly.   4    Includes CHF 0.9 billion of strategic divestments and CHF 0.4 billion from real estate sales.   5    Under our strategic business plan, business growth will require reallocation of capital, because we are targeting no gross increase in risk-weighted assets. Assumed year-end 2012 goal of CHF 300 billion reflects current foreign exchange rates and estimates for Basel III treatment. Includes Basel III risk-weighted assets (in US dollars) in Investment Banking, at or below current levels.

For the years 2014 – 2018, there will be a five-year (20% per annum) phase in of goodwill and other intangibles and other Basel III capital deductions (e.g., deferred tax assets and participations in financial institutions). Assuming successful completion of the July 2012 capital measures and assuming fully phased-in goodwill and intangible assets and other capital deductions, the CET1 ratio is estimated to be 8.5% as of January 1, 2013.

Transitional Swiss Core and Total Capital ratio simulation

Swiss Core Capital includes the Basel III CET1 and existing tier 1 participation securities that qualify as part of the Swiss equity requirement in excess of the 8.5% Basel III G-SIB CET1 ratio that will be applicable to us as of January 1, 2013. Successful completion of the July 2012 capital measures and earnings-related effects would result in an expected year-end 2012 Swiss Core Capital ratio of 14.3% and Swiss Total Capital ratio of 15.7%, down from 14.7% and 16.1%, respectively, estimated in 2Q12 and compared to 6.0% and 8.5%, respectively, that will be required by FINMA.

Look-through Swiss Core and Total Capital ratio simulation

The Look-through Swiss Core Capital includes Basel III CET1 and existing participation securities that qualify as part of the Swiss equity requirements in excess of the 8.5% Basel III G-SIB CET1 ratio, assuming fully phased-in goodwill and intangible assets and other capital deductions. Successful completion of the July 2012 capital measures and earnings-related effects would result in an expected year-end 2012 Look-through Swiss Core Capital ratio of approximately 9.3%, which remained stable compared to our 2Q12 simulation, and compared to the 10.0% that will be required by year-end 2018.

Risk management

In 3Q12, our utilized economic capital decreased 8%, overall position risk decreased 4%, average risk management VaR in US dollars decreased 19% and gross impaired loans decreased slightly to CHF 1.7 billion.

Economic capital and position risk

Economic capital is used as a consistent and comprehensive tool for risk management, capital management and performance measurement. It is our core Group-wide risk management tool for measuring and reporting all quantifiable risks. Economic capital measures risks in terms of economic realities rather than regulatory or accounting rules and is the estimated capital needed to remain solvent and in business, even under extreme market, business and operational conditions, given our target financial strength (our long-term credit rating).

We regularly review our economic capital methodology in order to ensure that the model remains relevant as markets and business strategies evolve. In 3Q12, we made a number of enhancements to the position risk methodology for risk management purposes. For emerging markets country event risk, we refined the allocation methodology to the divisions. In fixed income trading, we removed the impact of the seasonal effects from the historical data used for energy products. For real estate & structured assets, we refined the model shocks used for asset finance products. For international lending & counterparty exposures, we enhanced the manner in which we capture ratings for high yield senior secured loans. Prior-period balances have been restated for the 3Q12 methodology changes in order to show meaningful trends. The total impact of the 3Q12 methodology changes on position risk for the Group as of the end of 2Q12 was a decrease of CHF 296 million, or 3%.

For utilized economic capital used for capital management purposes, we adopted the above position risk methodology changes. Prior-period balances have been restated for the 3Q12 methodology changes in order to show meaningful trends. The total impact of these methodology changes on utilized economic capital for the Group as of the end of 2Q11 was a decrease of CHF 462 million, or 1%.

> Refer to “Economic capital and position risk” in III – Treasury, Risk, Balance sheet and Off-balance sheet – Risk management in the Credit Suisse Annual Report 2011 for further information on economic capital and position risk.

Position risk

	end of				% change
	3Q12	2Q12	4Q11	3Q11	QoQ	Ytd	YoY
Position risk (CHF million)
Fixed income trading 1	1,643	2,706	2,881	1,966	(39)	(43)	(16)
Equity trading & investments	2,174	2,082	2,137	2,112	4	2	3
Private banking corporate & retail lending	2,286	2,187	2,182	2,059	5	5	11
International lending & counterparty exposures	4,187	3,781	4,009	4,102	11	4	2
Emerging markets country event risk	1,322	1,304	860	731	1	54	81
Real estate & structured assets 2	2,227	2,395	2,157	2,428	(7)	3	(8)
Simple sum across risk categories	13,839	14,455	14,226	13,398	(4)	(3)	3
Diversification benefit 3	(2,831)	(2,941)	(2,689)	(2,558)	(4)	5	11
Position risk (99% confidence level for risk management purposes)	11,008	11,514	11,537	10,840	(4)	(5)	2
Prior-period balances have been restated for methodology changes in order to show meaningful trends.
1    This category comprises fixed income trading, foreign exchange and commodity exposures.   2    This category comprises commercial and residential real estate (including RMBS and CMBS), ABS exposure, real estate acquired at auction and real estate fund investments.   3    Reflects the net difference between the sum of the position risk categories and the position risk on the total portfolio.

Key position risk trends

Position risk for risk management purposes as of the end of 3Q12 decreased 4% compared to the end of 2Q12, mainly due to lower interest rate, credit spread and foreign exchange exposures in fixed income trading and lower RMBS exposure in real estate & structured assets. These decreases were partially offset by new loans and reduced hedges and increased counterparty risk in Investment Banking in international lending & counterparty exposures, higher volumes in trade finance and increased risk in loans collateralized by securities in private banking corporate & retail lending exposures and increased cash equities and derivative exposures in equity trading & investments.

Compared to the end of 3Q11, position risk for risk management purposes increased 2%. Excluding the US dollar translation impact, position risk decreased 1%, as lower interest rate and foreign exchange exposures in fixed income trading and lower RMBS exposure following sales in real estate & structured assets were offset by increased exposures in Latin America and Eastern Europe in emerging markets country event risk and higher residential mortgage exposures and commercial loans in private banking corporate & retail lending.

As part of our overall risk management, we hold a portfolio of hedges. Hedges are impacted by market movements similar to other trading securities and may result in gains or losses which offset losses or gains on the portfolio they were designated to hedge. Due to the varying nature and structure of hedges, these gains or losses may not perfectly offset the losses or gains on the portfolio.

Economic capital

	in / end of				% change
	3Q12	2Q12	4Q11	3Q11	QoQ	Ytd	YoY
Economic capital resources (CHF million)
Tier 1 capital 1	43,257	38,512	36,844	34,967	12	17	24
Economic adjustments 2	2,259	2,378	2,417	4,171	(5)	(7)	(46)
Economic capital resources	45,516	40,890	39,261	39,138	11	16	16
Utilized economic capital (CHF million)
Position risk (99.97% confidence level)	19,703	20,580	20,591	19,308	(4)	(4)	2
Operational risk	3,881	3,836	3,754	3,467	1	3	12
Other risks 3	6,332	7,990	8,302	8,477	(21)	(24)	(25)
Utilized economic capital	29,916	32,406	32,647	31,252	(8)	(8)	(4)
Utilized economic capital by segment (CHF million)
Private Banking	7,759	7,575	7,481	7,131	2	4	9
Investment Banking	17,806	19,860	20,013	19,009	(10)	(11)	(6)
Asset Management	2,603	3,089	3,232	3,197	(16)	(19)	(19)
Corporate Center 4	1,748	1,887	1,927	1,922	(7)	(9)	(9)
Utilized economic capital - Credit Suisse 5	29,916	32,406	32,647	31,252	(8)	(8)	(4)
Average utilized economic capital by segment (CHF million)
Private Banking	7,667	7,360	7,306	7,057	4	5	9
Investment Banking	18,833	19,327	19,511	19,017	(3)	(3)	(1)
Asset Management	2,846	3,080	3,214	3,155	(8)	(11)	(10)
Corporate Center 4	1,818	1,911	1,924	1,122	(5)	(6)	62
Average utilized economic capital - Credit Suisse 6	31,161	31,666	31,949	30,338	(2)	(2)	3
Prior-period balances have been restated for methodology changes in order to show meaningful trends.
1    Reported under Basel II.5 for all periods presented.   2    Primarily includes securitization adjustments, unrealized gains on owned real estate and anticipated cash dividends. Economic adjustments are made to tier 1 capital to enable comparison between capital utilization and resources under the Basel framework.   3    Includes owned real estate risk, expense risk, pension risk, foreign exchange risk between economic capital resources and utilized economic capital, interest rate risk on treasury positions, diversification benefit and an estimate for the impacts of certain methodology changes planned for 2012.   4    Includes primarily expense risk diversification benefits from the divisions and foreign exchange risk between economic capital resources and utilized economic capital.   5    Includes a diversification benefit of CHF 5 million, CHF 6 million and CHF 7 million as of the end of 2Q12, 4Q11 and 3Q11, respectively.   6    Includes a diversification benefit of CHF 3 million, CHF 12 million, CHF 6 million and CHF 13 million as of the end of 3Q12, 2Q12, 4Q11 and 3Q11, respectively.

Utilized economic capital trends

In 3Q12, our utilized economic capital decreased 8%, mainly due to lower expense risk, primarily within Investment Banking, and lower position risk.

For Private Banking, utilized economic capital increased 2%, mainly due to increased position risk from higher private banking corporate & retail lending exposures.

For Investment Banking, utilized economic capital decreased 10%, largely due to lower expense risk and decreased position risk in fixed income trading. The decrease was partially offset by increased position risk from higher international lending & counterparty exposures.

For Asset Management, utilized economic capital decreased 16%, primarily due to decreased position risk in equity trading & investments and lower expense risk.

For Corporate Center, lower utilized economic capital reflected a decrease in expense risk.

Market risk

Trading portfolios

We primarily assume market risk through the trading activities in Investment Banking. The other divisions also engage in trading activities, but to a much lesser extent. Trading risks are measured using VaR along with a number of other risk measurement tools. VaR measures the potential loss in fair value of trading positions due to adverse market movements over a defined time horizon at a specified confidence level. VaR relies on historical data and is considered a useful tool for estimating potential loss in normal markets in which there are no abrupt changes in market conditions. We use risk management VaR for internal risk management purposes and regulatory VaR for regulatory capital purposes. For risk management VaR, we use a one-day holding period and a 98% confidence level. This means there is a 1-in-50 chance of incurring a daily mark-to-market trading loss at least as large as the reported VaR. For regulatory VaR, we present one-day, 99% VaR, which is a ten-day VaR adjusted to a one-day holding period. Our VaR methodology is the same for both VaR measures, except for the confidence levels and holding periods. Other tools, including stress testing, are more appropriate for modeling the impact from severe market conditions.

We regularly review our VaR model to ensure that it remains appropriate given evolving market conditions and the composition of our trading portfolio. In 3Q12, there were no material changes to the VaR methodology.

For regulatory capital purposes, we operate under the Basel II.5 market risk framework which includes an incremental risk charge and stressed VaR.

> Refer to “Market risk” in III – Treasury, Risk, Balance sheet and Off-balance sheet – Risk management in the Credit Suisse Annual Report 2011 for further information.

In order to show the aggregate market risk in our trading books, the chart entitled “Daily risk management VaR” shows the trading-related market risk on a consolidated basis.

One-day, 98% risk management VaR and one-day, 99% regulatory VaR (CHF)

	Risk management VaR (98%)							Regulatory VaR (99%)
in / end of	Interest rate & credit spread	Foreign exchange	Commodity	Equity	Diversi- fication benefit		Total	Total
3Q12 (CHF million)
Average	52	9	2	25	(38)		50	54
Minimum	41	3	1	17	–	1	40	43
Maximum	66	17	4	32	–	1	65	66
End of period	41	6	4	27	(38)		40	43
2Q12 (CHF million)
Average	56	18	3	20	(37)		60	60
Minimum	49	7	2	14	–	1	49	51
Maximum	65	34	4	30	–	1	72	89
End of period	60	8	2	19	(27)		62	60
3Q11 (CHF million)
Average	69	10	7	20	(30)		76	62
Minimum	54	6	2	15	–	1	54	50
Maximum	88	25	14	28	–	1	104	77
End of period	84	10	5	23	(23)		99	56
Excludes risks associated with counterparty and own credit exposures.
1    As the maximum and minimum occur on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit.

One-day, 98% risk management VaR and one-day, 99% regulatory VaR (USD)

	Risk management VaR (98%)							Regulatory VaR (99%)
in / end of	Interest rate & credit spread	Foreign exchange	Commodity	Equity	Diversi- fication benefit		Total	Total
3Q12 (USD million)
Average	54	9	2	25	(38)		52	56
Minimum	44	3	1	18	–	1	43	44
Maximum	67	17	4	33	–	1	67	69
End of period	44	6	4	29	(40)		43	46
2Q12 (USD million)
Average	60	19	3	21	(39)		64	65
Minimum	53	7	2	16	–	1	53	55
Maximum	72	38	5	33	–	1	75	93
End of period	62	8	2	20	(28)		64	62
3Q11 (USD million)
Average	83	12	9	24	(37)		91	75
Minimum	74	8	3	18	–	1	74	62
Maximum	99	29	16	32	–	1	117	87
End of period	94	11	5	26	(25)		111	62
Excludes risks associated with counterparty and own credit exposures.
1    As the maximum and minimum occur on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit.

We measure VaR in US dollars, as substantially all market risk relates to Investment Banking.

Average risk management VaR decreased 19% to USD 52 million from 2Q12. The decrease reflected lower risk across fixed income due to lower market volatility and RMBS and commercial mortgage-backed securities (CMBS) exposures, partially offset by increased equity exposure. Compared to 3Q11, average risk management VaR decreased 43%, primarily reflecting lower risk across fixed income due to lower market volatility and net sales of RMBS client inventory mainly in 3Q11 and 4Q11.

Period-end risk management VaR decreased 33% to USD 43 million from 2Q12, mainly reflecting lower market volatility and reduced RMBS and CMBS exposures, partially offset by increased equity exposure. Compared to 3Q11, period-end risk management VaR decreased 61%, also mainly reflecting lower market volatility and reduced fixed income exposures.

Various techniques are used to assess the accuracy of the regulatory VaR model used for trading portfolios, including backtesting. We conduct such backtesting using actual daily trading revenues. Actual daily trading revenues are compared with a regulatory 99% VaR calculated using a one-day holding period. A backtesting exception occurs when a trading loss exceeds the daily VaR estimate. We had no such backtesting exceptions in 3Q12.

For capital purposes, FINMA, in line with BIS requirements, uses a multiplier to impose an increase in market risk capital for every regulatory VaR exception over four in the prior rolling 12-month period calculated using a subset of actual daily trading revenues.

> Refer to “Capital management” in Treasury management for further information on the use of our regulatory VaR model in the calculation of trading book market risk capital requirements.

The histogram entitled “Actual daily trading revenues” compares the actual daily trading revenues for 3Q12 with those for 2Q12 and 3Q11. The dispersion of trading revenues indicates the day-to-day volatility in our trading activities. In 3Q12, we had no trading loss days compared to two trading loss days in 2Q12.

Banking portfolios

We assume non-trading interest rate risk through interest rate-sensitive positions originated by Private Banking and risk-transferred to Treasury, money market and funding activities by Treasury and the deployment of our consolidated equity as well as other activities, including market making and trading activities involving banking book positions at the divisions, primarily Investment Banking. Savings accounts and many other retail banking products have no contractual maturity date or direct market-linked interest rate and are risk-transferred from Private Banking to Treasury on a pooled basis using replicating portfolios (approximating the re-pricing behavior of the underlying product). Treasury and certain other areas of the Group running interest rate risk positions actively manage the positions within approved limits.

The impact of a one basis point parallel increase of the yield curves on the fair value of interest rate-sensitive non-trading book positions would have amounted to a valuation increase of CHF 9.0 million as of the end of 3Q12, compared to a valuation increase of CHF 8.0 million as of the end of 2Q12.

Credit risk

Credit risk is the possibility of a loss being incurred by us as the result of a borrower or counterparty failing to meet its financial obligations or as a result of deterioration in the credit quality of the borrower or counterparty. In the event of a customer default, a bank generally incurs a loss equal to the amount owed by the debtor, less any recoveries from foreclosure, liquidation of collateral, or the restructuring of the debtor company. A change in the credit quality of a counterparty has an impact on the valuation of assets eligible for fair value measurement, with valuation changes recorded in the consolidated statements of operations.

Sources of credit risk

The majority of our credit risk is concentrated in Private Banking and Investment Banking. Credit risk exists within lending products, commitments and letters of credit, and results from counterparty exposure arising from derivatives, foreign exchange and other transactions.

Our regular review of the creditworthiness of clients and counterparties does not depend on the accounting treatment of the asset or commitment. Adverse changes in the creditworthiness of counterparties of loans held at fair value are reflected in valuation changes reported directly in revenues, and therefore are not part of the impaired loans balance.

> Refer to “Credit risk” in III – Treasury, Risk, Balance sheet and Off-balance sheet – Risk management in the Credit Suisse Annual Report 2011 for further information on credit risk.

> Refer to “Note 26 – Financial instruments” in III – Condensed consolidated financial statements – unaudited for further information on counterparty credit risk.

Selected European credit risk exposures

The scope of our disclosure of European credit risk exposure includes all countries of the EU which are rated below AA or its equivalent by at least one of the three major rating agencies and where our gross exposure exceeds our quantitative threshold of EUR 0.5 billion. We believe this external rating is a useful measure in determining the financial ability of countries to meet their financial obligations, including giving an indication of vulnerability to adverse business, financial and economic conditions.

The basis for the presentation of the country exposure is our internal risk domicile view. The risk domicile view is based on the domicile of the legal counterparty, i.e., it may include exposure to a legal entity domiciled in the reported country where its parent is located outside of the country.

The credit risk exposure in the table is presented on a risk-based view. We present our credit risk exposure and related risk mitigation for the following distinct categories:

– Gross credit risk exposure includes the principal amount of loans drawn, letters of credit issued and undrawn portions of committed facilities, the positive replacement value of derivative instruments after consideration of legally enforceable netting agreements, the notional value of investments in money market funds and the market values of securities financing transactions and the debt cash trading portfolio (short-term securities) netted at issuer level.

– Risk mitigation includes credit default swaps (CDS), all of which are fully margined, and other hedges, at their net notional amount, guarantees, insurance and collateral (primarily cash, securities and, to a lesser extent, real estate, mainly for Private Banking exposure to corporates & other). Collateral values applied for the calculation of the net exposure are determined in accordance with our risk management policies and reflect applicable margining considerations.

– Net credit risk exposure represents gross credit risk exposure net of risk mitigation.

– Inventory represents the long inventory positions in trading and non-trading physical debt and synthetic positions, each at market value, all netted at issuer level. Physical debt is non-derivative debt positions (e.g., bonds), and synthetic positions are created through over-the-counter (OTC) contracts (e.g., CDS purchased and/or sold and total return swaps).

Our credit risk exposure to these European countries is managed as part of our risk management process. The Group makes use of country limits and performs scenario analyses on a regular basis, which include analyses on our indirect sovereign credit risk exposures from our exposures to selected European financial institutions. This assessment of indirect sovereign credit risk exposures includes analysis of publicly available disclosures of counterparties’ exposures to the European countries within the defined scope of our disclosure. We monitor the concentration of collateral underpinning our OTC derivative and repurchase agreement exposures through monthly reporting. We also monitor the impact of sovereign rating downgrades on collateral eligibility. Strict limits on sovereign collateral from G7 and non-G7 countries are monitored monthly. Similar disclosure is part of our regular risk reporting to regulators.

Selected European credit risk exposures

	Gross credit risk exposure	Risk mitigation			Net credit risk exposure	Inventory	2			Total credit risk exposure
end of 3Q12		CDS	Other	1				Net synthetic inventory	3	Gross	Net
Greece (EUR billion)
Sovereigns	0.2	0.0	0.2		0.0	0.0		0.0		0.2	0.0
Financial institutions	0.1	0.0	0.1		0.0	0.0		0.0		0.1	0.0
Corporates & other	0.5	0.0	0.4		0.1	0.0		0.0		0.5	0.1
Total	0.8	0.0	0.7		0.1	0.0		0.0		0.8	0.1
Ireland (EUR billion)
Sovereigns	0.1	0.1	0.0		0.0	0.0		0.0		0.1	0.0
Financial institutions	1.3	0.0	1.2		0.1	0.1		0.0		1.4	0.2
Corporates & other	1.0	0.4	0.3		0.3	0.1		(0.1)		1.1	0.4
Total	2.4	0.5	1.5		0.4	0.2		(0.1)		2.6	0.6
Italy (EUR billion)
Sovereigns	3.7	2.6	0.4		0.7	0.0		(0.1)		3.7	0.7
Financial institutions	2.4	0.0	1.6		0.8	0.2		0.1		2.6	1.0
Corporates & other	2.4	0.2	1.4		0.8	0.2		0.0		2.6	1.0
Total	8.5	2.8	3.4		2.3	0.4		0.0		8.9	2.7
Portugal (EUR billion)
Sovereigns	0.1	0.1	0.0		0.0	0.0		(0.2)		0.1	0.0
Financial institutions	0.2	0.0	0.2		0.0	0.1		(0.2)		0.3	0.1
Corporates & other	0.2	0.0	0.1		0.1	0.0		0.0		0.2	0.1
Total	0.5	0.1	0.3		0.1	0.1		(0.4)		0.6	0.2
Spain (EUR billion)
Sovereigns	0.0	0.0	0.0		0.0	0.1		0.0		0.1	0.1
Financial institutions	1.0	0.0	0.8		0.2	0.6		0.2		1.6	0.8
Corporates & other	1.8	0.2	0.8		0.8	0.2		0.0		2.0	1.0
Total	2.8	0.2	1.6		1.0	0.9		0.2		3.7	1.9
Total (EUR billion)
Sovereigns	4.1	2.8	0.6		0.7	0.1		(0.3)		4.2	0.8
Financial institutions	5.0	0.0	3.9		1.1	1.0		0.1		6.0	2.1
Corporates & other	5.9	0.8	3.0		2.1	0.5		(0.1)		6.4	2.6
Total	15.0	3.6	7.5		3.9	1.6		(0.3)		16.6	5.5
1    Includes other hedges (derivative instruments), guarantees, insurance and collateral.   2    Represents long inventory positions netted at issuer level.   3    Substantially all of which results from CDS; represents long positions net of short positions.

On a gross basis, before taking into account risk mitigation, our risk-based sovereign credit risk exposure to Greece, Ireland, Italy, Portugal and Spain as of the end of 3Q12 was EUR 4.2 billion, up from EUR 3.9 billion as of the end of 2Q12. Our net exposure to these sovereigns was EUR 0.8 billion, up from EUR 0.4 billion as of the end of 2Q12. Our non-sovereign risk-based credit risk exposure in these countries as of the end of 3Q12 included net exposure to financial institutions of EUR 2.1 billion and to corporates and other counterparties of EUR 2.6 billion, compared to EUR 2.3 billion and EUR 2.6 billion, respectively, as of the end of 2Q12. A significant majority of the purchased credit protection is transacted with banks outside of the disclosed countries; otherwise such credit risk is reflected in the gross and net exposure to each relevant country.

In 3Q12, the long-term sovereign debt ratings of the countries listed in the table were affected as follows: Moody’s lowered the rating for Italy by two notches to Baa2 from A3. The rating change did not have a significant impact on the Group’s financial condition, result of operations, liquidity or capital resources.

Credit risk overview

The following table represents credit risk from loans, loan commitments and certain other contingent liabilities, loans held-for-sale, traded loans and derivative instruments before consideration of risk mitigation such as cash collateral and marketable securities or credit hedges. Loan commitments include irrevocable credit facilities for Investment Banking and Private Banking and unused credit limits which can be revoked at our sole discretion upon notice to the client in Private Banking.

Credit risk

	end of				% change
	3Q12	2Q12	4Q11	3Q11	QoQ	Ytd	YoY
Balance sheet (CHF million)
Gross loans	243,417	240,163	234,357	227,369	1	4	7
Loans held-for-sale	20,141	20,115	20,457	22,215	0	(2)	(9)
Traded loans	3,945	3,488	3,581	3,756	13	10	5
Derivative instruments 1	45,618	45,449	56,254	67,934	0	(19)	(33)
Total balance sheet	313,121	309,215	314,649	321,274	1	0	(3)
Off-balance sheet (CHF million)
Loan commitments 2	234,125	220,450	220,560	219,668	6	6	7
Credit guarantees and similar instruments	13,562	17,062	7,348	6,715	(21)	85	102
Irrevocable commitments under documentary credits	5,244	4,573	5,687	5,385	15	(8)	(3)
Total off-balance sheet	252,931	242,085	233,595	231,768	4	8	9
Total credit risk	566,052	551,300	548,244	553,042	3	3	2
Before risk mitigation, for example, collateral, credit hedges.
1    Positive replacement value after netting agreements.   2    Includes CHF 139 billion, CHF 135 billion, CHF 138 billion and CHF 138 billion of unused credit limits as of the end of 3Q12, 2Q12, 4Q11 and 3Q11, respectively, which were revocable at our sole discretion upon notice to the client.

Loan exposure

Compared to the end of 2Q12, gross loans increased CHF 3.3 billion to CHF 243.4 billion. In Private Banking, gross loans were CHF 206.0 billion, up CHF 2.7 billion from 2Q12, mainly reflecting increases in residential mortgages, commercial and industrial loans and consumer finance. Gross loans in Investment Banking increased 1% to CHF 37.3 billion, mainly reflecting increases in loans to financial institutions.

Gross impaired loans decreased slightly to CHF 1.7 billion as of the end of 3Q12, mainly reflecting a decrease in potential problem loans in Private Banking, partially offset by increases in total non-performing and non-interest-earning loans across the Group. A portion of the impaired loans is economically hedged by insurance and other risk mitigation, including CDS.

We recorded a net provision for credit losses of CHF 41 million in 3Q12, compared to a net provision of CHF 25 million in 2Q12, with a net provision of CHF 36 million in Private Banking and a net provision of CHF 5 million in Investment Banking.

> Refer to “Private Banking” and “Investment Banking” in I – Credit Suisse results for further information.

Compared to the end of 3Q11, gross loans increased 7%. An increase in Private Banking was primarily due to higher commercial and industrial loans, residential mortgages, consumer finance loans and the US dollar translation impact. In Investment Banking, the increase was mainly related to increased loans to financial institutions and governments and public institutions and the US dollar translation impact, partially offset by a decrease in commercial and industrial loans and lower loans to the real estate sector. Gross impaired loans increased 15%, as increases in non-performing loans across the Group and non-interest-earning loans and potential problem loans in Private Banking were partially offset by decreases in potential problem loans in Investment Banking.

Loans

	Private Banking						Investment Banking			Credit Suisse			1
end of	3Q12		2Q12		3Q11		3Q12	2Q12	3Q11	3Q12	2Q12	3Q11
Loans (CHF million)
Mortgages	92,106		90,618		87,640		0	0	0	92,106	90,618	87,640
Loans collateralized by securities	26,141		26,281		26,465		0	0	0	26,141	26,281	26,465
Consumer finance	7,096		6,605		5,524		682	486	702	7,867	7,176	6,228
Consumer	125,343		123,504		119,629		682	486	702	126,114	124,075	120,333
Real estate	24,611		24,414		23,318		1,676	1,702	1,964	26,287	26,116	25,282
Commercial and industrial loans	47,698		47,128		41,838		14,271	14,674	14,582	61,989	61,813	56,426
Financial institutions	7,055		6,913		6,863		18,975	18,343	16,176	26,030	25,256	23,045
Governments and public institutions	1,267		1,299		1,240		1,730	1,604	1,043	2,997	2,903	2,283
Corporate & institutional	80,631	2	79,754	2	73,259	2	36,652	36,323	33,765	117,303	116,088	107,036
Gross loans	205,974		203,258		192,888		37,334	36,809	34,467	243,417	240,163	227,369
Net (unearned income) / deferred expenses	(44)		(37)		(12)		(20)	(34)	(27)	(64)	(71)	(39)
Allowance for loan losses 3	(761)		(776)		(699)		(136)	(152)	(184)	(897)	(928)	(883)
Net loans	205,169		202,445		192,177		37,178	36,623	34,256	242,456	239,164	226,447
Impaired loans (CHF million)
Non-performing loans	679		698		564		261	223	174	940	921	738
Non-interest-earning loans	316		272		233		5	26	33	321	298	266
Total non-performing and non-interest-earning loans	995		970		797		266	249	207	1,261	1,219	1,004
Restructured loans	0		0		4		34	36	37	34	36	41
Potential problem loans	429		506		358		5	13	95	434	519	453
Total other impaired loans	429		506		362		39	49	132	468	555	494
Gross impaired loans 3	1,424		1,476		1,159		305	298	339	1,729	1,774	1,498
of which loans with a specific allowance	1,116		1,193		941		234	197	323	1,350	1,390	1,264
of which loans without a specific allowance	308		283		218		71	101	16	379	384	234
Allowance for loan losses (CHF million)
Balance at beginning of period 3	776		755		700		152	153	216	928	908	916
Change in scope of consolidation	0		0		0		(18)	0	0	(18)	0	0
Net movements recognized in statements of operations	28		39		27		(4)	(15)	3	24	24	30
Gross write-offs	(48)		(32)		(44)		(1)	(12)	(54)	(49)	(44)	(98)
Recoveries	5		6		9		1	6	0	6	12	9
Net write-offs	(43)		(26)		(35)		0	(6)	(54)	(43)	(32)	(89)
Provisions for interest	2		2		1		6	2	0	8	4	1
Foreign currency translation impact and other adjustments, net	(2)		6		6		0	18	19	(2)	24	25
Balance at end of period 3	761		776		699		136	152	184	897	928	883
of which individually evaluated for impairment	560		574		505		128	108	122	688	682	627
of which collectively evaluated for impairment	201		202		194		8	44	62	209	246	256
1    Includes Asset Management and Corporate Center, in addition to Private Banking and Investment Banking.   2    Includes loans secured by financial collateral and mortgages. The value of financial collateral and mortgages, considered up to the amount of the related loans, was CHF 63,803 million, CHF 63,496 million and CHF 59,927 million as of the end of 3Q12, 2Q12 and 3Q11, respectively.   3    Impaired loans and allowance for loan losses are only based on loans which are not carried at fair value.

Balance sheet and off-balance sheet

Total assets were CHF 1,023.3 billion, total liabilities were CHF 980.5 billion and total equity was CHF 42.8 billion. Both total assets and total liabilities were down 2% for the quarter, driven in both cases by an increase from operating activities and the foreign exchange translation impact. The majority of our transactions are recorded on our balance sheet, however, we also enter into transactions that give rise to both on and off-balance sheet exposure.

Balance sheet summary

	end of				% change
	3Q12	2Q12	4Q11	3Q11	QoQ	Ytd	YoY
Assets (CHF million)
Cash and due from banks	86,977	99,038	110,573	92,376	(12)	(21)	(6)
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	204,260	226,864	236,963	239,747	(10)	(14)	(15)
Trading assets	288,583	284,058	279,553	300,342	2	3	(4)
Net loans	242,456	239,164	233,413	226,447	1	4	7
Brokerage receivables	54,630	50,411	43,446	57,020	8	26	(4)
All other assets	146,386	143,920	145,217	145,589	2	1	1
Total assets	1,023,292	1,043,455	1,049,165	1,061,521	(2)	(2)	(4)
Liabilities and equity (CHF million)
Due to banks	40,696	41,325	40,147	47,876	(2)	1	(15)
Customer deposits	319,832	312,683	313,401	314,952	2	2	2
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	168,924	189,266	176,559	169,373	(11)	(4)	0
Trading liabilities	113,933	115,782	127,760	137,554	(2)	(11)	(17)
Long-term debt	149,719	154,838	162,655	164,177	(3)	(8)	(9)
Brokerage payables	68,512	75,822	68,034	70,212	(10)	1	(2)
All other liabilities	118,843	111,634	119,524	114,899	6	(1)	3
Total liabilities	980,459	1,001,350	1,008,080	1,019,043	(2)	(3)	(4)
Total shareholders' equity	35,682	34,774	33,674	33,519	3	6	6
Noncontrolling interests	7,151	7,331	7,411	8,959	(2)	(4)	(20)
Total equity	42,833	42,105	41,085	42,478	2	4	1
Total liabilities and equity	1,023,292	1,043,455	1,049,165	1,061,521	(2)	(2)	(4)

Balance sheet

Total assets were CHF 1,023.3 billion as of the end of 3Q12, down CHF 20.2 billion, or 2%, from the end of 2Q12, driven by a decrease from operating activities and the foreign exchange translation impact. Excluding the foreign exchange translation impact, total assets decreased CHF 16.3 billion.

Compared to the end of 2Q12, central bank funds sold, securities purchased under resale agreements and securities borrowing transactions decreased CHF 22.6 billion, or 10%, primarily driven by a decrease in reverse repurchase transactions. Cash and due from banks decreased CHF 12.1 billion, or 12%, mainly driven by decreases in central bank holdings. Trading assets increased CHF 4.5 billion, or 2%, driven by increases in equity securities across most businesses, partially offset by a decrease in debt securities. Brokerage receivables increased CHF 4.2 billion, or 8%, mainly reflecting increased margin lending and open trades. Net loans increased CHF 3.3 billion, or 1%, mainly reflecting increases in residential mortgages and commercial and industrial loans in Private Banking and increases in loans to financial institutions in Investment Banking and Private Banking. All other assets increased CHF 2.5 billion, or 2%, including increases of CHF 2.1 billion in securities received as collateral, CHF 1.8 billion in other assets and CHF 0.3 billion in other investments, partially offset by a decrease of CHF 1.6 billion in investment securities.

Total liabilities were CHF 980.5 billion as of the end of 3Q12, down CHF 20.9 billion, or 2%, from the end of 2Q12, driven by a decrease from operating activities and the foreign exchange translation impact. Excluding the foreign exchange translation impact, total liabilities decreased CHF 16.3 billion.

Compared to the end of 2Q12, central bank funds purchased, securities sold under repurchase agreements and securities lending transactions decreased CHF 20.3 billion, or 11%, mainly driven by decreases in repurchase agreements. Brokerage payables decreased CHF 7.3 billion, or 10%, mainly driven by prime brokerage and open trades. Long-term debt decreased CHF 5.1 billion, or 3%, reflecting our tender offer and the maturing of senior and subordinated debt, partially offset by the issuance of senior debt and domestic covered bonds. Trading liabilities decreased CHF 1.8 billion, or 2%, primarily due to a decrease in short trading positions, partially offset by an increase in derivative instruments. Due to banks decreased CHF 0.6 billion, or 2%, primarily driven by a decrease in demand deposits from commercial banks. Customer deposits increased CHF 7.1 billion, or 2%, primarily due to a growth in the customer deposit base. All other liabilities increased CHF 7.2 billion, or 6%, including increases of CHF 8.4 billion in short-term borrowings and CHF 2.1 billion in obligations to return securities received as collateral, partially offset by a decrease of CHF 3.3 billion in other liabilities.

> Refer to “Funding sources and uses” and “Capital management” in Treasury management for further information, including our funding of the balance sheet and the leverage ratio.

Off-balance sheet

We enter into off-balance sheet arrangements in the normal course of business. Off-balance sheet arrangements are transactions or other contractual arrangements with, or for the benefit of, an entity that is not consolidated. These transactions include derivative instruments, guarantees and similar arrangements, retained or contingent interests in assets transferred to an unconsolidated entity in connection with our involvement with SPEs, and obligations and liabilities (including contingent obligations and liabilities) under variable interests in unconsolidated entities that provide financing, liquidity, credit and other support.

> Refer to “Treasury management” in III – Treasury, Risk, Balance sheet and Off-balance sheet in the Credit Suisse Annual Report 2011 and “Note 24 – Guarantees and commitments” and “Note 28 – Litigation” in III – Condensed consolidated financial statements – unaudited for further information.

Condensed consolidated financial statements – unaudited

Condensed consolidated financial statements unaudited

Notes to the condensed consolidated financial statements unaudited

On or about November 6, 2012, we will publish and file with the SEC our Financial Report 3Q12, which will include additional disclosures on:

– fair value of financial instruments;

– loans, allowance for loan losses and credit quality;

– derivatives and hedging activities;

– investment securities;

– guarantees and commitments;

– assets pledged or assigned;

– transfers of financial assets and variable interest entities; and

– tax.

The accompanying notes to the condensed consolidated financial statements – unaudited are an integral part of these statements.

Condensed consolidated financial statements – unaudited

Consolidated statements of operations (unaudited)

in	3Q12	2Q12	3Q11	9M12	9M11
Consolidated statements of operations (CHF million)
Interest and dividend income	4,923	7,044	5,375	17,262	17,909
Interest expense	(3,211)	(5,430)	(3,729)	(12,052)	(13,133)
Net interest income	1,712	1,614	1,646	5,210	4,776
Commissions and fees	3,224	3,130	3,061	9,526	10,195
Trading revenues	(3)	1,156	1,920	1,342	5,047
Other revenues	911	375	62	2,088	1,719
Net revenues	5,844	6,275	6,689	18,166	21,737
Provision for credit losses	41	25	84	100	90
Compensation and benefits	3,094	3,005	3,067	9,810	10,192
General and administrative expenses	1,862	1,673	2,209	5,188	5,493
Commission expenses	427	441	485	1,319	1,512
Total other operating expenses	2,289	2,114	2,694	6,507	7,005
Total operating expenses	5,383	5,119	5,761	16,317	17,197
Income before taxes	420	1,131	844	1,749	4,450
Income tax expense	101	311	332	396	1,068
Net income	319	820	512	1,353	3,382
Net income/(loss) attributable to noncontrolling interests	65	32	(171)	267	792
Net income attributable to shareholders	254	788	683	1,086	2,590
Earnings per share (CHF)
Basic earnings per share	0.16	0.48	0.54	0.72	1.96
Diluted earnings per share	0.16	0.46	0.53	0.71	1.95

Consolidated statements of comprehensive income (unaudited)

in	3Q12	2Q12	3Q11	9M12	9M11
Comprehensive income (CHF million)
Net income	319	820	512	1,353	3,382
Gains/(losses) on cash flow hedges	15	(4)	0	25	(27)
Foreign currency translation	(226)	1,115	1,842	(228)	(1,172)
Unrealized gains/(losses) on securities	(147)	(47)	28	(10)	(10)
Actuarial gains/(losses)	63	46	31	182	84
Net prior service cost	(16)	(14)	4	(52)	10
Other comprehensive income/(loss), net of tax	(311)	1,096	1,905	(83)	(1,115)
Comprehensive income/(loss)	8	1,916	2,417	1,270	2,267
Comprehensive income/(loss) attributable to noncontrolling interests	40	217	277	248	614
Comprehensive income/(loss) attributable to shareholders	(32)	1,699	2,140	1,022	1,653

Consolidated balance sheets (unaudited)

end of	3Q12	2Q12	4Q11	3Q11
Assets (CHF million)
Cash and due from banks	86,977	99,038	110,573	92,376
Interest-bearing deposits with banks	2,265	2,328	2,272	2,244
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	204,260	226,864	236,963	239,747
Securities received as collateral, at fair value	32,338	30,191	30,191	28,812
of which encumbered	20,598	20,985	20,447	18,538
Trading assets, at fair value	288,583	284,058	279,553	300,342
of which encumbered	87,338	74,191	73,749	79,134
Investment securities	3,734	5,326	5,160	5,403
Other investments	13,111	12,773	13,226	14,566
Net loans	242,456	239,164	233,413	226,447
of which encumbered	588	602	471	460
allowance for loan losses	(897)	(928)	(910)	(883)
Premises and equipment	6,724	6,846	7,193	6,936
Goodwill	8,603	8,665	8,591	8,361
Other intangible assets	281	278	288	269
Brokerage receivables	54,630	50,411	43,446	57,020
Other assets	79,330	77,513	78,296	78,998
of which encumbered	1,723	2,120	2,255	2,281
Total assets	1,023,292	1,043,455	1,049,165	1,061,521

Consolidated balance sheets (unaudited) (continued)

end of	3Q12	2Q12	4Q11	3Q11
Liabilities and equity (CHF million)
Due to banks	40,696	41,325	40,147	47,876
Customer deposits	319,832	312,683	313,401	314,952
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	168,924	189,266	176,559	169,373
Obligation to return securities received as collateral, at fair value	32,338	30,191	30,191	28,812
Trading liabilities, at fair value	113,933	115,782	127,760	137,554
Short-term borrowings	27,588	19,184	26,116	23,176
Long-term debt	149,719	154,838	162,655	164,177
Brokerage payables	68,512	75,822	68,034	70,212
Other liabilities	58,917	62,259	63,217	62,911
Total liabilities	980,459	1,001,350	1,008,080	1,019,043
Common shares	53	51	49	48
Additional paid-in capital	23,273	21,930	21,796	21,159
Retained earnings	28,025	27,771	27,053	27,804
Treasury shares, at cost	(471)	(66)	(90)	0
Accumulated other comprehensive income/(loss)	(15,198)	(14,912)	(15,134)	(15,492)
Total shareholders' equity	35,682	34,774	33,674	33,519
Noncontrolling interests	7,151	7,331	7,411	8,959
Total equity	42,833	42,105	41,085	42,478
Total liabilities and equity	1,023,292	1,043,455	1,049,165	1,061,521

end of	3Q12	2Q12	4Q11	3Q11
Additional share information
Par value (CHF)	0.04	0.04	0.04	0.04
Authorized shares (million)	2,118.1	2,118.1	1,868.1	1,868.1
Common shares issued (million)	1,320.1	1,286.6	1,224.3	1,203.0
Treasury shares (million)	(27.4)	(3.5)	(4.0)	0.0
Shares outstanding (million)	1,292.7	1,283.1	1,220.3	1,203.0

Consolidated statements of changes in equity (unaudited)

	Attributable to shareholders
	Common shares	Additional paid-in capital		Retained earnings	Treasury shares, at cost	Accumu- lated other compre- hensive income	Total share- holders' equity	Non- controlling interests		Total equity	Number of common shares outstanding
3Q12 (CHF million)
Balance at beginning of period	51	21,930		27,771	(66)	(14,912)	34,774	7,331		42,105	1,283,087,871	1
Purchase of subsidiary shares from non- controlling interests, not changing ownership   2, 3	–	–		–	–	–	–	(184)		(184)	–
Sale of subsidiary shares to noncontrolling interests, not changing ownership   3	–	–		–	–	–	–	46		46	–
Net income/(loss)	–	–		254	–	–	254	72	4	326	–
Total other comprehensive income/(loss), net of tax	–	–		–	–	(286)	(286)	(25)		(311)	–
Issuance of common shares	2	589		–	–	–	591	–		591	33,488,613
Sale of treasury shares	–	6		–	2,197	–	2,203	–		2,203	117,625,611
Repurchase of treasury shares	–	–		–	(2,622)	–	(2,622)	–		(2,622)	(142,676,897)
Share-based compensation, net of tax	–	773	5	–	20	–	793	1		794	1,139,636
Financial instruments indexed to own shares 6	–	6		–	–	–	6	–		6	–
Dividends paid	–	–		–	–	–	–	(16)		(16)	–
Changes in redeemable noncontrolling interests	–	(1)		–	–	–	(1)	–		(1)	–
Change in scope of consolidation, net	–	–		–	–	–	–	(74)		(74)	–
Other	–	(30)		–	–	–	(30)	–		(30)	–
Balance at end of period	53	23,273		28,025	(471)	(15,198)	35,682	7,151		42,833	1,292,664,834	7
1    At par value CHF 0.04 each, fully paid, net of 3,511,364 treasury shares. In addition to the treasury shares, a maximum of 805,730,391 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders. 449,750,000 of these unissued shares are reserved mainly for a potential conversion of already issued buffer capital notes into shares in the case of a trigger event. As a result of the capital measures announced on July 18, 2012, 732,326,910 shares are reserved for buffer capital notes and mandatory and contingent convertible securities.    2    Distributions to owners in funds include the return of original capital invested and any related dividends.   3    Transactions with and without ownership changes related to fund activity are all displayed under "not changing ownership".   4    Net income attributable to noncontrolling interests excludes CHF 7 million due to redeemable noncontrolling interests.   5    Includes a net tax benefit of CHF 4 million from the excess fair value of shares delivered over recognized compensation expense.   6    The Group had purchased certain call options on its own shares to economically hedge share-based compensation awards. In accordance with US GAAP, these call options were designated as equity instruments and, as such, were initially recognized in shareholders' equity at their fair values and not subsequently remeasured.   7    At par value CHF 0.04 each, fully paid, net of 27,423,014 treasury shares. In addition to the treasury shares, a maximum of 772,241,728 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders. 732,326,910 of these shares are reserved for buffer capital notes and mandatory and contingent convertible securities.

Consolidated statements of changes in equity (unaudited) (continued)

	Attributable to shareholders
	Common shares	Additional paid-in capital	Retained earnings	Treasury shares, at cost	Accumu- lated other compre- hensive income	Total share- holders' equity	Non- controlling interests	Total equity	Number of common shares outstanding
2Q12 (CHF million)
Balance at beginning of period	49	22,262	27,097	0	(15,823)	33,585	7,279	40,864	1,224,513,920
Purchase of subsidiary shares from non- controlling interests, changing ownership	–	44	–	–	–	44	–	44	–
Purchase of subsidiary shares from non- controlling interests, not changing ownership	–	–	–	–	–	–	(194)	(194)	–
Sale of subsidiary shares to noncontrolling interests, not changing ownership	–	–	–	–	–	–	42	42	–
Net income/(loss)	–	–	788	–	–	788	32	820	–
Total other comprehensive income/(loss), net of tax	–	–	–	–	911	911	185	1,096	–
Issuance of common shares	2	1,317	–	–	–	1,319	–	1,319	62,085,315
Sale of treasury shares	–	(33)	–	1,955	–	1,922	–	1,922	93,628,678
Repurchase of treasury shares	–	–	–	(2,128)	–	(2,128)	–	(2,128)	(101,754,767)
Share-based compensation, net of tax	–	(594)	–	107	–	(487)	(1)	(488)	4,614,725
Financial instruments indexed to own shares	–	(57)	–	–	–	(57)	–	(57)	–
Dividends paid	–	(1,011)	(114)	–	–	(1,125)	(12)	(1,137)	–
Changes in redeemable noncontrolling interests	–	2	–	–	–	2	–	2	–
Balance at end of period	51	21,930	27,771	(66)	(14,912)	34,774	7,331	42,105	1,283,087,871

Consolidated statements of changes in equity (unaudited) (continued)

	Attributable to shareholders
	Common shares	Additional paid-in capital	Retained earnings	Treasury shares, at cost	Accumu- lated other compre- hensive income	Total share- holders' equity	Non- controlling interests	Total equity	Number of common shares outstanding
3Q11 (CHF million)
Balance at beginning of period	48	21,107	27,121	(111)	(16,949)	31,216	9,091	40,307	1,199,099,753
Purchase of subsidiary shares from non- controlling interests, changing ownership	–	3	–	–	–	3	(4)	(1)	–
Purchase of subsidiary shares from non- controlling interests, not changing ownership	–	–	–	–	–	–	(631)	(631)	–
Sale of subsidiary shares to noncontrolling interests, not changing ownership	–	–	–	–	–	–	248	248	–
Net income/(loss)	–	–	683	–	–	683	(178)	505	–
Total other comprehensive income/(loss), net of tax	–	–	–	–	1,457	1,457	448	1,905	–
Issuance of common shares	–	16	–	–	–	16	–	16	800,843
Sale of treasury shares	–	6	–	2,473	–	2,479	–	2,479	98,020,445
Repurchase of treasury shares	–	–	–	(2,373)	–	(2,373)	–	(2,373)	(95,274,393)
Share-based compensation, net of tax	–	224	–	11	–	235	–	235	357,344
Financial instruments indexed to own shares	–	(38)	–	–	–	(38)	–	(38)	–
Dividends paid	–	–	–	–	–	–	(15)	(15)	–
Changes in redeemable noncontrolling interests	–	(159)	–	–	–	(159)	–	(159)	–
Balance at end of period	48	21,159	27,804	0	(15,492)	33,519	8,959	42,478	1,203,003,992

Consolidated statements of changes in equity (unaudited) (continued)

	Attributable to shareholders
	Common shares	Additional paid-in capital		Retained earnings	Treasury shares, at cost	Accumu- lated other compre- hensive income	Total share- holders' equity	Non- controlling interests		Total equity	Number of common shares outstanding
9M12 (CHF million)
Balance at beginning of period	49	21,796		27,053	(90)	(15,134)	33,674	7,411		41,085	1,220,322,988	1
Purchase of subsidiary shares from non- controlling interests, changing ownership	–	44		–	–	–	44	–		44	–
Purchase of subsidiary shares from non- controlling interests, not changing ownership   2, 3	–	–		–	–	–	–	(495)		(495)	–
Sale of subsidiary shares to noncontrolling interests, not changing ownership   3	–	–		–	–	–	–	95		95	–
Net income/(loss)	–	–		1,086	–	–	1,086	274	4	1,360	–
Total other comprehensive income/(loss), net of tax	–	–		–	–	(64)	(64)	(19)		(83)	–
Issuance of common shares	4	1,910		–	–	–	1,914	–		1,914	95,754,786
Sale of treasury shares	–	5		–	5,973	–	5,978	–		5,978	285,623,325
Repurchase of treasury shares	–	–		–	(6,484)	–	(6,484)	–		(6,484)	(314,915,942)
Share-based compensation, net of tax	–	576	5	–	130	–	706	–		706	5,879,677
Financial instruments indexed to own shares 6	–	(10)		–	–	–	(10)	–		(10)	–
Dividends paid	–	(1,011)	7	(114)	–	–	(1,125)	(41)		(1,166)	–
Changes in redeemable noncontrolling interests	–	(7)	8	–	–	–	(7)	–		(7)	–
Change in scope of consolidation, net	–	–		–	–	–	–	(74)		(74)	–
Other	–	(30)		–	–	–	(30)	–		(30)	–
Balance at end of period	53	23,273		28,025	(471)	(15,198)	35,682	7,151		42,833	1,292,664,834	9
1    At par value CHF 0.04 each, fully paid, net of 4,010,074 treasury shares. In addition to the treasury shares, a maximum of 643,807,004 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders.   2    Distributions to owners in funds include the return of original capital invested and any related dividends.   3    Transactions with and without ownership changes related to fund activity are all displayed under "not changing ownership".   4    Net income attributable to noncontrolling interests excludes CHF 7 million due to redeemable noncontrolling interests.   5    Includes a net tax benefit of CHF 17 million from the excess fair value of shares delivered over recognized compensation expense.   6    The Group had purchased certain call options on its own shares to economically hedge share-based compensation awards. In accordance with US GAAP, these call options were designated as equity instruments and, as such, were initially recognized in shareholders' equity at their fair values and not subsequently remeasured.   7    Paid out of reserves from capital contributions.   8    Represents the accrued portion of the redemption value of redeemable noncontrolling interests in Credit Suisse Hedging-Griffo Investimentos S.A. Refer to "Other commitments" in Note 24 – Guarantees and commitments for further information.   9    At par value CHF 0.04 each, fully paid, net of 27,423,014 treasury shares. In addition to the treasury shares, a maximum of 772,241,728 unissued shares (conditional and authorized capital) were available for issuance without further approval of the shareholders. 732,326,910 of these shares are reserved for buffer capital notes and mandatory and contingent convertible securities.

Consolidated statements of changes in equity (unaudited) (continued)

	Attributable to shareholders
	Common shares	Additional paid-in capital	Retained earnings	Treasury shares, at cost	Accumu- lated other compre- hensive income	Total share- holders' equity	Non- controlling interests	Total equity	Number of common shares outstanding
9M11 (CHF million)
Balance at beginning of period	47	23,026	25,316	(552)	(14,555)	33,282	9,733	43,015	1,173,946,065
Purchase of subsidiary shares from non- controlling interests, changing ownership	–	1	–	–	–	1	(5)	(4)	–
Purchase of subsidiary shares from non- controlling interests, not changing ownership	–	–	–	–	–	–	(1,378)	(1,378)	–
Sale of subsidiary shares to noncontrolling interests, changing ownership	–	(7)	–	–	–	(7)	7	–	–
Sale of subsidiary shares to noncontrolling interests, not changing ownership	–	–	–	–	–	–	494	494	–
Net income/(loss)	–	–	2,590	–	–	2,590	759	3,349	–
Total other comprehensive income/(loss), net of tax	–	–	–	–	(937)	(937)	(178)	(1,115)	–
Issuance of common shares	1	681	–	–	–	682	–	682	16,829,550
Sale of treasury shares	–	(77)	–	10,302	–	10,225	–	10,225	295,174,972
Repurchase of treasury shares	–	–	–	(10,045)	–	(10,045)	–	(10,045)	(289,886,140)
Share-based compensation, net of tax	–	(489)	–	295	–	(194)	(1)	(195)	6,939,545
Financial instruments indexed to own shares	–	164	–	–	–	164	–	164	–
Dividends paid	–	(1,646)	(102)	–	–	(1,748)	(72)	(1,820)	–
Changes in redeemable noncontrolling interests	–	(494)	–	–	–	(494)	(90)	(584)
Change in scope of consolidation, net	–	–	–	–	–	–	(310)	(310)	–
Balance at end of period	48	21,159	27,804	0	(15,492)	33,519	8,959	42,478	1,203,003,992

Consolidated statements of cash flows (unaudited)

in	9M12	9M11
Operating activities of continuing operations (CHF million)
Net income	1,353	3,382
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities of continuing operations (CHF million)
Impairment, depreciation and amortization	950	854
Provision for credit losses	100	90
Deferred tax provision	(122)	662
Share of net income from equity method investments	74	(26)
Trading assets and liabilities, net	(19,346)	22,507
(Increase)/decrease in other assets	(14,940)	(22,535)
Increase/(decrease) in other liabilities	(2,905)	11,213
Other, net	2,772	(3,184)
Total adjustments	(33,417)	9,581
Net cash provided by/(used in) operating activities of continuing operations	(32,064)	12,963
Investing activities of continuing operations (CHF million)
(Increase)/decrease in interest-bearing deposits with banks	(125)	(732)
(Increase)/decrease in central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	31,666	(24,910)
Purchase of investment securities	(330)	(1,437)
Proceeds from sale of investment securities	665	2,100
Maturities of investment securities	1,537	1,738
Investments in subsidiaries and other investments	(1,550)	(1,326)
Proceeds from sale of other investments	1,653	4,323
(Increase)/decrease in loans	(9,597)	(11,323)
Proceeds from sales of loans	791	302
Capital expenditures for premises and equipment and other intangible assets	(927)	(1,172)
Proceeds from sale of premises and equipment and other intangible assets	10	5
Other, net	2,498	171
Net cash provided by/(used in) investing activities of continuing operations	26,291	(32,261)

Consolidated statements of cash flows (unaudited) (continued)

in	9M12	9M11
Financing activities of continuing operations (CHF million)
Increase/(decrease) in due to banks and customer deposits	4,855	41,139
Increase/(decrease) in short-term borrowings	466	2,112
Increase/(decrease) in central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	(7,349)	5,805
Issuances of long-term debt	30,297	27,431
Repayments of long-term debt	(46,072)	(27,553)
Issuances of common shares	1,914	682
Sale of treasury shares	5,978	10,225
Repurchase of treasury shares	(6,484)	(10,045)
Dividends paid/capital repayments	(1,167)	(1,820)
Other, net	(90)	335
Net cash provided by/(used in) financing activities of continuing operations	(17,652)	48,311
Effect of exchange rate changes on cash and due from banks (CHF million)
Effect of exchange rate changes on cash and due from banks	(171)	(2,129)
Net cash provided by/(used in) discontinued operations (CHF million)
Net cash provided by/(used in) operating activities of discontinued operations	0	25
Net increase/(decrease) in cash and due from banks (CHF million)
Net increase/(decrease) in cash and due from banks	(23,596)	26,909
Cash and due from banks at beginning of period	110,573	65,467
Cash and due from banks at end of period	86,977	92,376

Supplemental cash flow information (unaudited)

in	9M12	9M11
Cash paid for income taxes and interest (CHF million)
Cash paid for income taxes	822	833
Cash paid for interest	12,364	13,623
Assets acquired and liabilities assumed in business acquisitions (CHF million)
Fair value of assets acquired	2,418	0
Fair value of liabilities assumed	2,418	0

Notes to the condensed consolidated financial statements – unaudited

Note 1 Summary of significant accounting policies

Basis of presentation

The accompanying unaudited condensed consolidated financial statements of Credit Suisse Group AG (the Group) are prepared in accordance with accounting principles generally accepted in the US (US GAAP) and are stated in Swiss francs (CHF). These condensed consolidated financial statements should be read in conjunction with the US GAAP consolidated financial statements and notes thereto for the year ended December 31, 2011, included in the Credit Suisse Annual Report 2011.

> Refer to “Note 1 – Summary of significant accounting policies” in V – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2011 for a description of the Group’s significant accounting policies.

Certain financial information, which is normally included in annual consolidated financial statements prepared in accordance with US GAAP, but not required for interim reporting purposes, has been condensed or omitted. Certain reclassifications have been made to the prior period’s consolidated financial statements to conform to the current period’s presentation. These condensed consolidated financial statements reflect, in the opinion of management, all adjustments that are necessary for a fair presentation of the condensed consolidated financial statements for the periods presented, except with respect to the additional disclosures on fair value of financial instruments, loans, allowance for loan losses and credit quality, derivatives and hedging activities, investment securities, guarantees and commitments, assets pledged or assigned, and transfers of financial assets and VIEs. These disclosures will be included in the Financial Report 3Q12 to be published on the Group’s website and filed with the SEC on or about November 6, 2012. The presentation of the 2Q12 consolidated statements of operations and comprehensive income, the 2Q12 and 3Q11 consolidated balance sheets and the 3Q12, 2Q12 and 3Q11 consolidated statements of changes in equity have been added for convenience of the reader and are not a required presentation under US GAAP. The results of operations for interim periods are not indicative of results for the entire year.

In preparing these condensed consolidated financial statements, management is required to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Note 2 Recently issued accounting standards

Recently adopted accounting standards

The following provides the most relevant recently adopted accounting standards.

> Refer to “Note 2 – Recently issued accounting standards” in V – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2011 for a description of accounting standards adopted in 2011.

ASC Topic 220 – Comprehensive Income

In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (ASU 2011-12), an update to ASC Topic 220 – Comprehensive Income. The amendment delays the effective date of those changes in ASU 2011-05 that relate to the presentation of reclassification adjustments. ASU 2011-12 was effective upon issuance and its adoption did not impact the Group’s financial condition, results of operations or cash flows.

In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income” (ASU 2011-05), an update to ASC Topic 220 – Comprehensive Income. ASU 2011-05 provides the entity with an option to present total comprehensive income either in a single continuous statement or in two separate but consecutive statements. The adoption of ASU 2011-05 on January 1, 2012 did not impact the Group’s financial position, results of operations or cash flows.

ASC Topic 350 – Intangibles – Goodwill and Other

In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment” (ASU 2011-08), an update to ASC Topic 350 – Intangibles – Goodwill and Other. The amendments in ASU 2011-08 permit an entity to qualitatively assess whether the fair value of the reporting unit is less than the carrying amount. Based on the qualitative assessment, if an entity determines that it is more likely than not that the fair value of the reporting unit is less than the carrying amount, then the entity must perform step one of the goodwill impairment test by calculating the fair value of the reporting unit and comparing the fair value to the carrying amount of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any. The adoption of ASU 2011-08 on January 1, 2012 did not have a material impact on the Group’s financial condition, results of operations or cash flows.

ASC Topic 360 – Property, Plant and Equipment

In December 2011, the FASB issued ASU 2011-10, “Derecognition of in Substance Real Estate – a Scope Clarification, a consensus of the FASB Emerging Issues Task Force” (ASU 2011-10), an update to ASC Topic 360 – Property, Plant and Equipment. The ASU specifies that the guidance in ASC Subtopic 360-20, Property, Plant and Equipment – Real Estate Sales, would apply to an entity that ceases to have a controlling financial interest in a subsidiary that is in substance real estate as a result of default on the subsidiary’s non-recourse debt. The adoption of ASU 2011-10 on July 1, 2012 did not have a material impact on the Group’s financial condition, results of operations or cash flows.

ASC Topic 820 – Fair Value Measurement

In May 2011, the FASB issued ASU 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (ASU 2011-04), an update to ASC Topic 820 – Fair Value Measurement. The amendments in ASU 2011-04 include clarifications about the application of existing fair value measurement requirements and changes to principles for measuring fair value. ASU 2011-04 also requires additional disclosures about fair value measurements. The adoption of ASU 2011-04 on January 1, 2012 did not have a material impact on the Group’s financial condition, results of operations or cash flows.

ASC Topic 860 – Transfers and Servicing

In April 2011, the FASB issued ASU 2011-03, “Reconsideration of Effective Control for Repurchase Agreements” (ASU 2011-03), an update to ASC Topic 860 – Transfers and Servicing. Current guidance prescribes when an entity may or may not recognize a sale upon the transfer of financial assets subject to repurchase agreements. That determination is based, in part, on whether the entity has maintained effective control over the transferred financial assets. ASU 2011-03 removes from the assessment of effective control the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets. The adoption of ASU 2011-03 on January 1, 2012 did not have a material impact on the Group’s financial condition, results of operations or cash flows.

Standards to be adopted in future periods

ASC Topic 210 – Balance Sheet

In December 2011, the FASB issued ASU 2011-11, “Disclosures about Offsetting Assets and Liabilities” (ASU 2011-11), an update to ASC Topic 210 – Balance Sheet. ASU 2011-11 is effective for interim and annual reporting periods beginning on or after January 1, 2013. An entity should provide the required disclosures retrospectively for all comparative periods presented. ASU 2011-11 is an update for presentation and as such will not impact the Group’s financial position, results of operation or cash flows.

Note 3 Business developments

In July 2012, we raised CHF 3.8 billion MACCS that are mandatorily convertible into 233.5 million shares at a conversion price of CHF 16.29 per share on March 29, 2013 (subject to early conversion upon certain contingency and viability events). Strategic and institutional investors purchased CHF 2.0 billion of MACCS and shareholders exercised preferential subscription rights for CHF 1.8 billion of MACCS. The MACCS will be accounted for as debt until conversion, when they will be reclassified to equity, utilizing authorized capital.

In July 2012, we exchanged a portion of our USD-denominated existing tier 1 capital notes issued in 2008 (hybrids) into high trigger tier 1 BCNs, thereby accelerating an exchange initially scheduled for October 2013. The conversion floor price of the BCNs delivered in the exchange (as well as the remaining BCNs scheduled to be delivered in 2013) has been adjusted to the conversion price of the MACCS described above. This acceleration did not have any impact on reported balance sheet balances as BCNs have been recognized on the balance sheet since the BCN commitment agreement in February 2011.

In July 2012, we completed a voluntary exchange offer, under which certain employees elected to convert any future cash payments from deferred compensation awards under the Adjustable Performance Plan awards for shares at the same price as the conversion price under the MACCS.

In July 2012, the Group sold its remaining ownership interest of 7.0% in Aberdeen, resulting in a gain of CHF 140 million recognized in 3Q12.

Note 4 Discontinued operations

The Group did not discontinue any material operations in 3Q12.

Note 5 Segment information

Overview

The Group is a global financial services company domiciled in Switzerland. The Group’s business consists of three segments: Private Banking, Investment Banking and Asset Management. The three segments are complemented by Shared Services, which provides support in the areas of finance, operations, human resources, legal and compliance, risk management and IT. Corporate Center includes parent company operations such as Group financing, expenses for projects sponsored by the Group and certain expenses that have not been allocated to the segments. In addition, Corporate Center includes consolidation and elimination adjustments required to eliminate intercompany revenues and expenses.

Beginning in 1Q12, the Group fully reflects the fair value impact from movements in credit spreads on its long-term vanilla debt and DVA on certain structured notes liabilities in the Corporate Center and discontinued the amortization in the segments of the past fair value gains on long-term vanilla debt, primarily in Investment Banking. DVA on certain structured notes liabilities was previously recorded in the Investment Banking segment and is now recorded in the Corporate Center in order to aggregate all credit-spread impacts on the Group’s funding instruments and to reflect that these impacts are driven by the creditworthiness of the Group rather than the Investment Banking segment or the issuer. Prior periods have been reclassified to conform to the current presentation and such reclassifications had no impact on the Group’s net income/(loss) or total shareholders’ equity.

> Refer to “Note 5 – Segment information” in V – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2011 for further information on segment information, revenue sharing and cost allocation, funding and taxes.

Net revenues and income before taxes

in	3Q12	2Q12	3Q11	9M12	9M11
Net revenues (CHF million)
Private Banking	2,591	2,704	2,600	7,899	8,120
Investment Banking	3,296	2,909	1,981	10,364	9,885
Asset Management	607	550	493	1,838	1,767
Corporate Center	(728)	78	1,743	(2,216)	1,184
Noncontrolling interests without SEI	78	34	(128)	281	781
Net revenues	5,844	6,275	6,689	18,166	21,737
Income/(loss) before taxes (CHF million)
Private Banking	689	775	207	2,070	1,803
Investment Banking	508	383	(720)	1,889	971
Asset Management	222	133	97	609	490
Corporate Center	(1,060)	(180)	1,452	(3,058)	483
Noncontrolling interests without SEI	61	20	(192)	239	703
Income before taxes	420	1,131	844	1,749	4,450

Total assets

end of	3Q12	2Q12	4Q11	3Q11
Total assets (CHF million)
Private Banking	376,989	366,609	347,476	346,744
Investment Banking	772,480	796,613	811,689	825,416
Asset Management	24,074	23,647	23,203	22,739
Corporate Center 1	(154,695)	(148,006)	(137,952)	(139,627)
Noncontrolling interests without SEI	4,444	4,592	4,749	6,249
Total assets	1,023,292	1,043,455	1,049,165	1,061,521
1    Under the central treasury model, Group financing results in intra-Group balances between the segments. The elimination of these assets and liabilities occurs in the Corporate Center.

Note 6 Net interest income

in	3Q12	2Q12	3Q11	9M12	9M11
Net interest income (CHF million)
Loans	1,230	1,232	1,202	3,675	3,677
Investment securities	12	26	22	59	76
Trading assets	2,419	4,418	2,514	9,503	9,350
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	732	786	848	2,290	2,425
Other	530	582	789	1,735	2,381
Interest and dividend income	4,923	7,044	5,375	17,262	17,909
Deposits	(331)	(353)	(429)	(1,072)	(1,260)
Short-term borrowings	(67)	(16)	(15)	(103)	(47)
Trading liabilities	(1,210)	(3,278)	(1,334)	(5,762)	(5,974)
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	(424)	(527)	(396)	(1,321)	(1,244)
Long-term debt	(1,113)	(1,177)	(1,425)	(3,577)	(4,317)
Other	(66)	(79)	(130)	(217)	(291)
Interest expense	(3,211)	(5,430)	(3,729)	(12,052)	(13,133)
Net interest income	1,712	1,614	1,646	5,210	4,776

Note 7 Commissions and fees

in	3Q12	2Q12	3Q11	9M12	9M11
Commissions and fees (CHF million)
Lending business	359	364	340	1,030	1,031
Investment and portfolio management	955	1,033	939	2,967	3,081
Other securities business	31	24	30	76	67
Fiduciary business	986	1,057	969	3,043	3,148
Underwriting	421	311	264	1,143	1,297
Brokerage	906	896	1,028	2,791	3,225
Underwriting and brokerage	1,327	1,207	1,292	3,934	4,522
Other services	552	502	460	1,519	1,494
Commissions and fees	3,224	3,130	3,061	9,526	10,195

Note 8 Trading revenues

in	3Q12	2Q12	3Q11	9M12	9M11
Trading revenues (CHF million)
Interest rate products	2,207	636	3,034	2,511	5,486
Foreign exchange products	(393)	(554)	(2,386)	90	(3,270)
Equity/index-related products	(613)	757	228	329	1,430
Credit products	(1,814)	162	1,266	(2,642)	1,108
Commodity, emission and energy products	212	17	69	300	375
Other products	398	138	(291)	754	(82)
Trading revenues	(3)	1,156	1,920	1,342	5,047
Represents revenues on a product basis which are not representative of business results within segments, as segment results utilize financial instruments across various product types.

> Refer to “Note 8 – Trading revenues” in V – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2011 for further information on trading revenues and managing trading risks.

Note 9 Other revenues

in	3Q12	2Q12	3Q11	9M12	9M11
Other revenues (CHF million)
Noncontrolling interests without SEI	73	50	(224)	267	683
Loans held-for-sale	(11)	(9)	(12)	(30)	23
Long-lived assets held-for-sale	366	(1)	(21)	363	43
Equity method investments	18	33	43	82	101
Other investments	268	130	107	630	447
Other	197	172	169	776	422
Other revenues	911	375	62	2,088	1,719

Note 10 Provision for credit losses

in	3Q12	2Q12	3Q11	9M12	9M11
Provision for credit losses (CHF million)
Provision for loan losses	24	24	30	75	45
Provision for lending-related and other exposures	17	1	54	25	45
Provision for credit losses	41	25	84	100	90

Note 11 Compensation and benefits

in	3Q12	2Q12	3Q11	9M12	9M11
Compensation and benefits (CHF million)
Salaries and variable compensation	2,702	2,571	2,683	8,587	8,905
Social security	147	247	164	613	693
Other 1	245	187	220	610	594
Compensation and benefits 2	3,094	3,005	3,067	9,810	10,192
1    Includes pension and other post-retirement expense of CHF 163 million, CHF 129 million, CHF 158 million, CHF 404 million and CHF 404 million in 3Q12, 2Q12, 3Q11, 9M12 and 9M11, respectively.   2    Includes severance and other compensation expense relating to headcount reductions of CHF 97 million, CHF 123 million, CHF 235 million, CHF 265 million and CHF 377 million as of 3Q12, 2Q12, 3Q11, 9M12 and 9M11, respectively.

Note 12 General and administrative expenses

in	3Q12	2Q12	3Q11	9M12	9M11
General and administrative expenses (CHF million)
Occupancy expenses	292	308	271	888	804
IT, machinery, etc.	369	372	379	1,084	1,039
Provisions and losses	237	13	540	319	629
Travel and entertainment	98	101	104	289	323
Professional services	474	473	489	1,382	1,515
Amortization and impairment of other intangible assets	8	7	7	29	22
Other	384	399	419	1,197	1,161
General and administrative expenses	1,862	1,673	2,209	5,188	5,493

Note 13 Earnings per share

in	3Q12	2Q12	3Q11	9M12		9M11
Basic net income attributable to shareholders (CHF million)
Net income attributable to shareholders	254	788	683	1,086		2,590
Preferred securities dividends	–	(114)	–	(114)		(102)
Net income attributable to shareholders for basic earnings per share	254	674	683	972		2,488
Available for common shares	212	615	644	913		2,348
Available for unvested share-based payment awards	17	59	39	59		140
Available for mandatory convertible securities 1	25	–	–	0	2	–
Diluted net income attributable to shareholders (CHF million)
Net income attributable to shareholders for basic earnings per share	254	674	683	972		2,488
Income impact of assumed conversion on contracts that may be settled in shares or cash   3	0	(13)	–	0		–
Net income attributable to shareholders for diluted earnings per share	254	661	683	972		2,488
Available for common shares	212	602	645	913		2,349
Available for unvested share-based payment awards	17	59	38	59		139
Available for mandatory convertible securities 1	25	–	–	0	2	–
Weighted-average shares outstanding (million)
Weighted-average shares outstanding for basic earnings per share available for common shares	1,290.6	1,282.2	1,203.6	1,272.3		1,195.8
Dilutive contracts that may be settled in shares or cash 4	0.0	26.4	–	0.0		–
Dilutive share options and warrants	5.3	6.4	6.2	5.4		3.9
Dilutive share awards	1.8	1.7	14.3	1.7		7.0
Weighted-average shares outstanding for diluted earnings per share available for common shares   5	1,297.7	1,316.7	1,224.1	1,279.4		1,206.7
Weighted-average shares outstanding for basic/diluted earnings per share available for unvested share-based payment awards	102.8	90.1	72.8	91.3		73.2
Weighted-average shares outstanding for basic/diluted earnings per share available for mandatory convertible securities   1	154.8	–	–	51.6		–
Earnings per share available for common shares (CHF)
Basic earnings per share available for common shares	0.16	0.48	0.54	0.72		1.96
Diluted earnings per share available for common shares	0.16	0.46	0.53	0.71		1.95
1    Reflects MACCS issued in July 2012 that are mandatorily convertible into shares on March 29, 2013.   2    US GAAP requires that both distributed earnings and undistributed earnings are considered in determining the net income attributable to each class of participating shares. Because distributed earnings paid on common shares and unvested share-based awards in 2Q12 exceed the actual earnings for 9M12, no earnings have been allocated to the mandatory convertible securities for 9M12.   3    Reflects changes in the fair value of the PAF2 units which are reflected in the net profit of the Group until the awards are finally settled. Fair value of the PAF2 units which are reflected in the net profit of the Group are not adjusted for 3Q12 and 9M12, respectively, as the effect would be antidilutive.   4    Reflects weighted-average shares outstanding on PAF2 units. Weighted-average shares on PAF2 units for 3Q12 and 9M12, respectively, were excluded from the diluted earnings per share calculation, as the effect would be antidilutive.   5    Weighted-average potential common shares relating to instruments that were not dilutive for the respective periods (and therefore not included in the diluted earnings per share calculation above) but could potentially dilute earnings per share in the future were 55.3 million, 23.5 million, 34.2 million, 48.3 million and 38.4 million for 3Q12, 2Q12, 3Q11, 9M12 and 9M11, respectively.

Note 14 Trading assets and liabilities

end of	3Q12	2Q12	4Q11	3Q11
Trading assets (CHF million)
Debt securities	154,972	160,166	145,035	153,714
Equity securities 1	76,974	68,829	66,904	65,390
Derivative instruments 2	42,256	42,014	52,548	64,656
Other	14,381	13,049	15,066	16,582
Trading assets	288,583	284,058	279,553	300,342
Trading liabilities (CHF million)
Short positions	61,841	67,239	67,639	73,063
Derivative instruments 2	52,092	48,543	60,121	64,491
Trading liabilities	113,933	115,782	127,760	137,554
1    Including convertible bonds.   2    Amounts shown net of cash collateral receivables and payables.

Cash collateral receivables and payables

end of	3Q12	2Q12	4Q11	3Q11
Cash collateral receivables (CHF million)
Receivables netted against derivative positions	34,281	37,637	36,474	35,153
Receivables not netted 1	14,241	13,221	15,809	17,600
Total	48,522	50,858	52,283	52,753
Cash collateral payables (CHF million)
Payables netted against derivative positions	38,418	39,816	37,639	38,014
Payables not netted 1	11,069	12,978	11,934	13,375
Total	49,487	52,794	49,573	51,389
1    Recorded as cash collateral on derivative instruments in Note 17 – Other assets and other liabilities.

Note 15 Investment securities

The required disclosure for investment securities will be included in the Financial Report 3Q12, which will be published on the Group’s website and filed with the SEC on or about November 6, 2012.

Management determined that the unrealized losses on debt securities are primarily attributable to general market interest rate, credit spread or exchange rate movements. No significant impairment charges were recorded as the Group does not intend to sell the investments, nor is it more likely than not that the Group will be required to sell the investments before the recovery of their amortized cost bases, which may be maturity.

Note 16 Loans, allowance for loan losses and credit quality

Loans are divided in two portfolio segments, “consumer” and “corporate & institutional”. Consumer loans are disaggregated into the classes of mortgages, loans collateralized by securities and consumer finance. Corporate & institutional loans are disaggregated into the classes of real estate, commercial and industrial loans, financial institutions and governments and public institutions.

The determination of the loan classes is primarily driven by the customer segmentation in the two business divisions, Private Banking and Investment Banking, that are engaged in credit activities.

The Group assigns both counterparty and transaction ratings to its credit exposures. The counterparty rating reflects the probability of default of the counterparty. The transaction rating reflects the expected loss, considering collateral, on a given transaction if the counterparty defaults. Credit risk is assessed and monitored on the single obligor and single obligation level as well as on the credit portfolio level as represented by the classes of loans. Credit limits are used to manage counterparty credit risk.

> Refer to “Note 18 – Loans, allowance for loan losses and credit quality” in V – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2011 for further information on loans, allowance for loan losses, credit quality and impaired loans.

The required disclosures on loan purchases, reclassifications and sales, credit quality and impaired loans will be included in the Financial Report 3Q12, which will be published on the Group’s website and filed with the SEC on or about November 6, 2012.

Loans

end of	3Q12	2Q12	4Q11	3Q11
Loans (CHF million)
Mortgages	92,106	90,618	88,255	87,640
Loans collateralized by securities	26,141	26,281	26,461	26,465
Consumer finance	7,867	7,176	6,695	6,228
Consumer	126,114	124,075	121,411	120,333
Real estate	26,287	26,116	25,185	25,282
Commercial and industrial loans	61,989	61,813	59,998	56,426
Financial institutions	26,030	25,256	25,373	23,045
Governments and public institutions	2,997	2,903	2,390	2,283
Corporate & institutional	117,303	116,088	112,946	107,036
Gross loans	243,417	240,163	234,357	227,369
Net (unearned income)/deferred expenses	(64)	(71)	(34)	(39)
Allowance for loan losses	(897)	(928)	(910)	(883)
Net loans	242,456	239,164	233,413	226,447
Gross loans by location (CHF million)
Switzerland	150,020	149,042	146,737	144,324
Foreign	93,397	91,121	87,620	83,045
Gross loans	243,417	240,163	234,357	227,369
Impaired loan portfolio (CHF million)
Non-performing loans	940	921	758	738
Non-interest-earning loans	321	298	262	266
Total non-performing and non-interest-earning loans	1,261	1,219	1,020	1,004
Restructured loans	34	36	18	41
Potential problem loans	434	519	680	453
Total other impaired loans	468	555	698	494
Gross impaired loans	1,729	1,774	1,718	1,498

Allowance for loan losses by loan portfolio

	3Q12			2Q12			3Q11
	Consumer	Corporate & institutional	Total	Consumer	Corporate & institutional	Total	Consumer	Corporate & institutional	Total
Allowance for loan losses (CHF million)
Balance at beginning of period	304	624	928	295	613	908	269	647	916
Change in scope of consolidation	(18)	0	(18)	0	0	0	0	0	0
Net movements recognized in statements of operations	22	2	24	25	(1)	24	28	2	30
Gross write-offs	(28)	(21)	(49)	(22)	(22)	(44)	(44)	(54)	(98)
Recoveries	5	1	6	3	9	12	10	(1)	9
Net write-offs	(23)	(20)	(43)	(19)	(13)	(32)	(34)	(55)	(89)
Provisions for interest	1	7	8	2	2	4	1	0	1
Foreign currency translation impact and other adjustments, net	1	(3)	(2)	1	23	24	6	19	25
Balance at end of period	287	610	897	304	624	928	270	613	883
of which individually evaluated for impairment	222	466	688	239	443	682	201	426	627
of which collectively evaluated for impairment	65	144	209	65	181	246	69	187	256

	9M12			9M11
	Consumer	Corporate & institutional	Total	Consumer	Corporate & institutional	Total
Allowance for loan losses (CHF million)
Balance at beginning of period	289	621	910	279	738	1,017
Change in scope of consolidation	(18)	0	(18)	0	0	0
Net movements recognized in statements of operations	69	6	75	42	3	45
Gross write-offs	(76)	(60)	(136)	(85)	(121)	(206)
Recoveries	19	18	37	30	2	32
Net write-offs	(57)	(42)	(99)	(55)	(119)	(174)
Provisions for interest	6	14	20	3	3	6
Foreign currency translation impact and other adjustments, net	(2)	11	9	1	(12)	(11)
Balance at end of period	287	610	897	270	613	883

Credit quality of loans held at amortized cost

Management monitors the credit quality of loans through its credit risk management processes, which are structured to assess, quantify, measure, monitor and manage risk on a consistent basis. This process requires careful consideration of proposed extensions of credit, the setting of specific limits, monitoring during the life of the exposure, active use of credit mitigation tools and a disciplined approach to recognizing credit impairment.

Management evaluates many factors when assessing the credit quality of loans. These factors include the volatility of default probabilities, rating changes, the magnitude of potential loss, internal risk ratings, and geographic, industry and other economic factors. For the purpose of credit quality disclosures, the Group uses internal risk ratings as credit quality indicators.

The Group employs a set of credit ratings for the purpose of internally rating counterparties. Credit ratings are intended to reflect the risk of default of each obligor or counterparty. Ratings are assigned based on internally developed rating models and processes, which are subject to governance and internally independent validation procedures.

> Refer to “Credit quality of loans held at amortized cost” in V – Consolidated financial statements – Credit Suisse Group – Note 18 – Loans, allowance for loan losses and credit quality in the Credit Suisse Annual Report 2011 for further information on internal ratings and the scope of the credit quality disclosures.

Impaired loans

> Refer to “Impaired loans” in V – Consolidated financial statements – Credit Suisse Group – Note 18 – Loans, allowance for loan losses and credit quality in the Credit Suisse Annual Report 2011 for further information on impaired loan categories and allowance for specifically identified credit losses on impaired loans.

Note 17 Other assets and other liabilities

end of	3Q12	2Q12	4Q11	3Q11
Other assets (CHF million)
Cash collateral on derivative instruments	14,241	13,221	15,809	17,600
Cash collateral on non-derivative transactions	3,068	2,920	2,083	1,431
Derivative instruments used for hedging	3,362	3,435	3,706	3,278
Assets held-for-sale	20,719	20,741	21,205	23,224
of which loans	20,141	20,115	20,457	22,215
of which real estate	571	619	732	993
Assets held for separate accounts	14,836	14,410	14,407	14,411
Interest and fees receivable	5,505	6,029	6,090	5,377
Deferred tax assets	7,191	8,825	8,939	8,190
Prepaid expenses	622	706	601	624
Failed purchases	3,280	2,861	1,513	1,337
Other	6,506	4,365	3,943	3,526
Other assets	79,330	77,513	78,296	78,998
Other liabilities (CHF million)
Cash collateral on derivative instruments	11,069	12,978	11,934	13,375
Cash collateral on non-derivative transactions	1,065	1,564	1,002	54
Derivative instruments used for hedging	1,383	1,682	1,998	2,105
Provisions 1	1,233	1,078	1,113	1,270
Liabilities held for separate accounts	14,836	14,410	14,407	14,411
Interest and fees payable	6,720	7,565	7,142	7,371
Current tax liabilities	822	817	767	763
Deferred tax liabilities	157	200	429	488
Failed sales	5,243	5,895	6,888	6,784
Other	16,389	16,070	17,537	16,290
Other liabilities	58,917	62,259	63,217	62,911
1    Includes provisions for bridge commitments.

Note 18 Long-term debt

end of	3Q12	2Q12	4Q11	3Q11
Long-term debt (CHF million)
Senior	117,692	120,627	123,632	123,222
Subordinated	18,000	20,351	24,165	24,216
Non-recourse liabilities from consolidated VIEs	14,027	13,860	14,858	16,739
Long-term debt	149,719	154,838	162,655	164,177

Note 19 Accumulated other comprehensive income

	Gains/ (losses) on cash flow hedges	Cumulative translation adjustments	Unrealized gains/ (losses) on securities	Actuarial gains/ (losses)	Net prior service credit/ (cost)	Accumu- lated other compre- hensive income
3Q12 (CHF million)
Balance at beginning of period	(56)	(11,786)	236	(3,632)	326	(14,912)
Increase/(decrease)	7	(227)	(46)	20	0	(246)
Increase/(decrease) due to equity method investments	8	0	0	0	0	8
Reclassification adjustments, included in net income	0	26	(101)	43	(16)	(48)
Balance at end of period	(41)	(11,987)	89	(3,569)	310	(15,198)
2Q12 (CHF million)
Balance at beginning of period	(52)	(12,716)	283	(3,678)	340	(15,823)
Increase/(decrease)	1	930	15	4	0	950
Increase/(decrease) due to equity method investments	(5)	0	0	0	0	(5)
Reclassification adjustments, included in net income	0	0	(62)	42	(14)	(34)
Balance at end of period	(56)	(11,786)	236	(3,632)	326	(14,912)
3Q11 (CHF million)
Balance at beginning of period	(60)	(13,858)	79	(3,083)	(27)	(16,949)
Increase/(decrease)	0	1,385	28	5	1	1,419
Reclassification adjustments, included in net income	0	9	0	26	3	38
Balance at end of period	(60)	(12,464)	107	(3,052)	(23)	(15,492)
9M12 (CHF million)
Balance at beginning of period	(66)	(11,778)	99	(3,751)	362	(15,134)
Increase/(decrease)	7	(236)	224	55	0	50
Increase/(decrease) due to equity method investments	18	0	0	0	0	18
Reclassification adjustments, included in net income	0	27	(234)	127	(52)	(132)
Balance at end of period	(41)	(11,987)	89	(3,569)	310	(15,198)
9M11 (CHF million)
Balance at beginning of period	(33)	(11,470)	117	(3,136)	(33)	(14,555)
Increase/(decrease)	4	(1,010)	14	5	1	(986)
Increase/(decrease) due to equity method investments	(4)	0	0	0	0	(4)
Reclassification adjustments, included in net income	(27)	16	(24)	79	9	53
Balance at end of period	(60)	(12,464)	107	(3,052)	(23)	(15,492)

Note 20 Tax

The income tax expense of CHF 101 million recorded in 3Q12 mainly reflected the impact of the geographical mix of results, the re-assessment of deferred tax assets and related valuation allowances that led to increases of net deferred tax assets in the US, partially offset by an increase in the valuation allowances against deferred tax assets in the UK.  In addition, the income tax expense was negatively influenced by the reduction of deferred tax assets caused by the impact of the change in UK corporation tax from 25% to 23% enacted in 3Q12.

Overall, net deferred tax assets decreased CHF 1,591 million to CHF 7,034 million as of the end of 3Q12 compared to 2Q12. The decrease in net deferred tax assets primarily related to taxable gains on transfers of assets within the consolidated Group for which associated tax charges have been deferred as other assets in accordance with ASC 810-10-45-8 (Consolidation – other presentation matters, formerly ARB 51). The deferral will be amortized over a period of up to 15 years in line with ASC 810-10-45-8 principles and will be matched by future tax deductions. In addition, the impact of the UK corporation tax reduction and foreign exchange translation losses further reduced net deferred tax assets. The decrease was partially offset by increases in net deferred tax assets as a result of the re-assessment of deferred tax assets and related valuation allowances in the UK and US.

The presentation of net deferred tax assets related to net operating losses, net deferred tax assets on temporary differences and net deferred tax liabilities is in accordance with ASC Topic 740 – Income Taxes guidance to interim reporting. Nettable gross deferred tax liabilities are allocated on a pro-rata basis to gross deferred tax assets on net operating losses and gross deferred tax assets on temporary differences. This approach is aligned with the underlying treatment of netting gross deferred tax assets and liabilities under the Basel III framework. Valuation allowances have been allocated against such deferred tax assets on net operating losses first with any remainder allocated to such deferred tax assets on temporary differences. This presentation is considered the most appropriate disclosure given the underlying nature of the gross deferred tax balances.

As of September 30, 2012, the Group had accumulated undistributed earnings from foreign subsidiaries of CHF 8.3 billion which are considered indefinitely reinvested. The Group would need to accrue and pay taxes on these undistributed earnings if such earnings were repatriated. No deferred tax liability was recorded in respect of those amounts as these earnings are considered indefinitely reinvested. It is not practicable to estimate the amount of unrecognized deferred tax liabilities for these undistributed foreign earnings.

The Group is currently subject to ongoing tax audits and inquiries with the tax authorities in a number of jurisdictions, including the US, the UK and Switzerland. Although the timing of the completion of these audits is uncertain, it is reasonably possible that some of these audits and inquiries will be resolved within 12 months of the reporting date. It is reasonably possible that there will be a decrease between zero and CHF 13 million in unrecognized tax benefits within 12 months of the reporting date.

The Group remains open to examination from federal, state, provincial or similar local jurisdictions from the following years onward in these major countries: Switzerland – 2008; the UK – 2006; the US – 2006; Japan – 2005; and the Netherlands – 2005.

Additional information on tax will be included in the Financial Report 3Q12, which will be published on the Group’s website and filed with the SEC on or about November 6, 2012.

Effective tax rate

in	3Q12	2Q12	3Q11	9M12	9M11
Effective tax rate (%)
Effective tax rate	24.0	27.5	39.3	22.6	24.0

Net deferred tax assets

end of	3Q12	2Q12	Change
Net deferred tax assets (CHF million)
Deferred tax assets	7,191	8,825	(1,634)
of which net operating losses	2,145	3,541	(1,396)
of which deductible temporary differences	5,046	5,284	(238)
Deferred tax liabilities	(157)	(200)	43
Net deferred tax assets	7,034	8,625	(1,591)

Note 21 Employee deferred compensation

The Group’s current and previous deferred compensation plans include share awards, performance share awards, Partner Asset Facilities awards, Adjustable Performance Plan awards, Restricted Cash Awards, Scaled Incentive Share Units (SISUs), Incentive Share Units (ISUs) and other cash awards.

> Refer to “Note 27 – Employee deferred compensation” in V – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2011 for further information.

The following tables show the expense for deferred compensation awards recognized in the consolidated statements of operations, the estimated unrecognized expense for deferred compensation awards granted in 3Q12 and prior periods and the associated remaining requisite service period over which the unrecognized expense will be recognized. The estimated unrecognized deferred compensation expense was based on the fair value of each award on the date of grant and included the current estimated outcome of relevant performance criteria and estimated future forfeitures but no estimate for future mark-to-market adjustments.

Deferred compensation expense

in	3Q12	2Q12	3Q11	9M12	9M11
Deferred compensation expense (CHF million)
Share awards	183	211	155	600	578
Performance share awards	86	96	0	285	0
2011 Partner Asset Facility awards 1	102	(19)	0	617	0
Adjustable Performance Plan share awards	30	0	0	30	0
Adjustable Performance Plan cash awards	62	98	201	268	889
Restricted Cash Awards	42	45	54	128	202
Scaled Incentive Share Units	21	32	99	83	314
Incentive Share Units	17	15	42	51	124
2008 Partner Asset Facility awards 1	64	12	(86)	125	(13)
Other cash awards	98	71	43	259	248
Total deferred compensation expense	705	561	508	2,446	2,342
1    Compensation expense includes the change in underlying fair value of the indexed assets during the period.

Estimated unrecognized deferred compensation expense

end of	3Q12
Estimated unrecognized deferred compensation expense (CHF million)
Share awards	894
Performance share awards	246
Adjustable Performance Plan share awards	93
Adjustable Performance Plan cash awards	109
Restricted Cash Awards	38
Scaled Incentive Share Units	104
Incentive Share Units	18
Other cash awards	84
Total	1,586
Aggregate remaining weighted-average requisite service period (years)
Aggregate remaining weighted-average requisite service period	1.3

3Q12 activity

Adjustable Performance Plan awards

In 3Q12, the Group executed a voluntary exchange offer, under which employees had the right to voluntarily convert all or a portion of their respective unvested Adjustable Performance Plan cash awards into Adjustable Performance Plan share awards at a conversion price of CHF 16.29. Adjustable Performance Plan holders elected to convert approximately CHF 498 million of their Adjustable Performance Plan cash awards into the new Adjustable Performance Plan share awards during the election period. Each Adjustable Performance Plan share award has a grant-date fair value of CHF 16.79 and contains the same contractual term, vesting period, performance criteria and other terms and conditions as the original Adjustable Performance Plan cash award.

Upon conversion, CHF 453 million of the liability related to Adjustable Performance Plan cash awards that were converted into the Adjustable Performance Plan share awards was reclassified to total shareholders’ equity.

Share-based award activity

	3Q12						9M12
Number of awards (in millions)	Share awards	Performance share awards	Adjustable Performance Plan share awards		SISU awards	ISU awards	Share awards	Performance share awards	Adjustable Performance Plan share awards		SISU awards	ISU awards
Share-based award activities
Balance at beginning of period	58.4	23.7	–		9.7	4.2	48.1	–	–		14.7	13.3
Granted	0.9	0.0	31.0	1	0.0	0.0	24.2	23.7	31.0	1	0.0	0.0
Settled	(1.5)	0.0	0.0		0.0	0.0	(14.0)	0.0	0.0		(4.9)	(8.8)
Forfeited	(1.1)	(0.2)	0.0		0.0	(0.3)	(1.6)	(0.2)	0.0		(0.1)	(0.6)
Balance at end of period	56.7	23.5	31.0		9.7	3.9	56.7	23.5	31.0		9.7	3.9
of which vested	2.9	0.2	0.0		1.4	0.4	2.9	0.2	0.0		1.4	0.4
of which unvested	53.8	23.3	31.0		8.3	3.5	53.8	23.3	31.0		8.3	3.5
1    Relates to the voluntary exchange offer.

Note 22 Pension and other post-retirement benefits

The Group previously disclosed that it expected to contribute CHF 639 million to the Swiss and international defined benefit plans and other post-retirement defined benefit plans in 2012. As of the end of 3Q12, CHF 536 million of contributions had been made.

Components of total pension costs

in	3Q12	2Q12	3Q11	9M12	9M11
Total pension costs (CHF million)
Service costs on benefit obligation	95	95	87	285	264
Interest costs on benefit obligation	129	128	135	385	409
Expected return on plan assets	(196)	(196)	(205)	(586)	(620)
Amortization of recognized prior service cost/(credit)	(14)	(13)	4	(41)	11
Amortization of recognized actuarial losses	58	58	35	173	108
Net periodic pension costs	72	72	56	216	172
Curtailment losses/(gains)	(5)	(4)	0	(24)	1
Special termination benefits	9	0	0	15	0
Total pension costs	76	68	56	207	173

Note 23 Derivatives and hedging activities

The required disclosures for derivatives and hedging activities and related contingent credit risk will be included in the Financial Report 3Q12, which will be published on the Group’s website and filed with the SEC on or about November 6, 2012.

> Refer to “Note 30 – Derivatives and hedging activities” in V – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2011 for further information.

Note 24 Guarantees and commitments

Guarantees

In the ordinary course of business, guarantees are provided that contingently obligate Credit Suisse to make payments to third parties if the counterparty fails to fulfill its obligation under a borrowing or other contractual arrangement. The total gross amount disclosed within the Guarantees table reflects the maximum potential payment under the guarantees. The carrying value represents the Group’s current best estimate of payments that will be required under existing guarantee arrangements.

Guarantees provided by the Group are classified as follows: credit guarantees and similar instruments, performance guarantees and similar instruments, securities lending indemnifications, derivatives and other guarantees.

> Refer to “Guarantees” in V – Consolidated financial statements – Credit Suisse Group – Note 31 – Guarantees and commitments in the Credit Suisse Annual Report 2011 for a detailed description of guarantees.

Guarantees

end of	Maturity less than 1 year	Maturity greater than 1 year	Total gross amount	Total net amount	1	Carrying value	Collateral received
3Q12 (CHF million)
Credit guarantees and similar instruments	3,159	10,403	13,562	13,167		407	2,400
Performance guarantees and similar instruments	5,050	4,903	9,953	9,102		152	3,517
Securities lending indemnifications	13,611	0	13,611	13,611		0	13,611
Derivatives 2	17,558	10,728	28,286	28,286		1,198	–	3
Other guarantees	4,265	1,105	5,370	5,347		3	2,822
Total guarantees	43,643	27,139	70,782	69,513		1,760	22,350
4Q11 (CHF million)
Credit guarantees and similar instruments	3,273	4,075	7,348	6,613		50	2,455
Performance guarantees and similar instruments	5,598	4,706	10,304	9,394		73	3,381
Securities lending indemnifications	15,005	0	15,005	15,005		0	15,005
Derivatives 2	27,593	23,800	51,393	51,393		3,650	–	3
Other guarantees	3,972	1,003	4,975	4,939		4	2,268
Total guarantees	55,441	33,584	89,025	87,344		3,777	23,109
1    Total net amount is computed as the gross amount less any participations.   2    Excludes derivative contracts with certain active commercial and investment banks and certain other counterparties, as such contracts can be cash settled and the Group had no basis to conclude it was probable that the counterparties held, at inception, the underlying instruments.   3    Collateral for derivatives accounted for as guarantees is not significant.

Deposit-taking banks and securities dealers in Switzerland and certain other European countries are required to ensure the payout of privileged deposits in case of specified restrictions or compulsory liquidation of a deposit-taking bank. In Switzerland, deposit-taking banks and securities dealers jointly guarantee an amount of up to CHF 6 billion. Upon occurrence of a payout event triggered by a specified restriction of business imposed by FINMA or by the compulsory liquidation of another deposit-taking bank, the Group’s contribution will be calculated based on its share of privileged deposits in proportion to total privileged deposits. Based on FINMA’s estimate for the Group’s banking subsidiaries in Switzerland, the Group’s share in the deposit insurance guarantee program for the period July 1, 2012 to June 30, 2013 is CHF 0.7 billion. These deposit insurance guarantees were reflected in other guarantees.

PAF2 transaction

The Group’s results are impacted by the risk of counterparty defaults and the potential for changes in counterparty credit spreads related to derivative trading activities of the Group. In 1Q12, the Group entered into the PAF2 transaction to hedge the counterparty credit risk of a referenced portfolio of derivatives and their credit spread volatility. The hedge covers approximately USD 12 billion notional amount of expected positive exposure from counterparties of the Group, and is addressed in three layers: (i) first loss (USD 0.5 billion), (ii) mezzanine (USD 0.8 billion) and (iii) senior (USD 11 billion). The first loss element is retained by the Group and actively managed through normal credit procedures. The mezzanine layer was hedged by transferring the risk of default and counterparty credit spread movements to eligible employees in the form of PAF2 awards, as part of their deferred compensation granted in the annual compensation process.

The Group has purchased protection on the senior layer to hedge against the potential for future counterparty credit spread volatility. This was executed through a CDS, accounted for at fair value, with a third-party entity. The Group also has a credit support facility with this entity that requires the Group to provide funding to it in certain circumstances. Under the facility, the Group may be required to fund payments or costs related to amounts due by the entity under the CDS, and any funded amount may be settled by the assignment of the rights and obligations of the CDS to the Group. The credit support facility is accounted for on an accrual basis and is reflected in credit guarantees and similar instruments in the “Guarantees” table. The transaction overall is a four-year transaction, but can be extended to nine years. The Group has the right to terminate the third-party transaction for certain reasons, including certain regulatory developments.

Representations and warranties on residential mortgage loans sold

In connection with Investment Banking’s sale of US residential mortgage loans, the Group has provided certain representations and warranties relating to the loans sold. The Group has provided these representations and warranties relating to sales of loans to: the US government-sponsored enterprises Fannie Mae and Freddie Mac (GSEs); institutional investors, primarily banks; and non-agency, or private label, securitizations. The loans sold are primarily loans that the Group has purchased from other parties. The scope of representations and warranties, if any, depends on the transaction, but can include: ownership of the mortgage loans and legal capacity to sell the loans; loan-to-value ratios and other characteristics of the property, the borrower and the loan; validity of the liens securing the loans and absence of delinquent taxes or related liens; conformity to underwriting standards and completeness of documentation; and origination in compliance with law. If it is determined that representations and warranties were breached, the Group may be required to repurchase the related loans or indemnify the investors to make them whole for losses. Whether the Group will incur a loss in connection with repurchases and make whole payments depends on: the extent to which claims are made; the validity of such claims (including the likelihood and ability to enforce claims); whether the Group can successfully claim against parties that sold loans to the Group and made representations and warranties to the Group; the residential real estate market, including the number of defaults; and whether the obligations of the securitization vehicles were guaranteed or insured by third parties.

Representations and warranties relating to residential mortgage loans sold to non-agency securitization vehicles are more limited in scope than those relating to residential mortgage loans sold to GSEs, and it can be more difficult to establish causation and standing in making a repurchase claim for breach of representations and warranties on residential mortgage loans sold in non-agency securitizations. The Group is involved in litigation relating to representations and warranties on residential mortgage loans sold.

> Refer to “Note 28 – Litigation” for further information.

Repurchase claims on residential mortgage loans sold that are subject to arbitration or litigation proceedings, or become so during the reporting period, are not included in the Guarantees and commitments disclosure of repurchase claims and related loss contingencies and provisions but are addressed in litigation and related loss contingencies and provisions.

Additional information on representations and warranties on residential mortgage loans sold will be included in the Financial Report 3Q12, which will be published on the Group’s website and filed with the SEC on or about November 6, 2012.

Disposal-related contingencies and other indemnifications

The Group has certain guarantees for which its maximum contingent liability cannot be quantified. These guarantees include disposal-related contingencies in connection with the sale of assets or businesses, and other indemnifications. These guarantees are not reflected in the “Guarantees” table.

> Refer to “Disposal-related contingencies and other indemnifications” in V – Consolidated financial statements – Credit Suisse Group – Note 31 – Guarantees and commitments in the Credit Suisse Annual Report 2011 for a description of these guarantees.

Other commitments

Other commitments of the Group are classified as follows: irrevocable commitments under documentary credits, loan commitments, forward reverse repurchase agreements and other commitments.

> Refer to “Guarantees” in V – Consolidated financial statements – Credit Suisse Group – Note 31 – Guarantees and commitments in the Credit Suisse Annual Report 2011 for a detailed description of guarantees.

Other commitments

end of	Maturity less than 1 year	Maturity greater than 1 year	Total gross amount		Total net amount	1	Collateral received
3Q12 (CHF million)
Irrevocable commitments under documentary credits	5,207	37	5,244		5,106		2,796
Loan commitments	165,220	68,905	234,125	2	228,655		157,463
Forward reverse repurchase agreements	47,871	0	47,871		47,871		47,871
Other commitments	1,269	1,865	3,134		3,134		172
Total other commitments	219,567	70,807	290,374		284,766		208,302
4Q11 (CHF million)
Irrevocable commitments under documentary credits	5,644	43	5,687		5,207		2,372
Loan commitments	157,701	62,859	220,560	2	215,343		144,278
Forward reverse repurchase agreements	28,885	0	28,885		28,885		28,885
Other commitments	1,457	2,151	3,608		3,608		33
Total other commitments	193,687	65,053	258,740		253,043		175,568
1    Total net amount is computed as the gross amount less any participations.   2    Includes CHF 139,307 million and CHF 138,051 million of unused credit limits as of the end of 3Q12 and 4Q11, respectively, which were revocable at the Group's sole discretion upon notice to the client.

Note 25 Transfers of financial assets and variable interest entities

The required disclosures for transfers of financial assets and VIEs will be included in the Financial Report 3Q12, which will be published on the Group’s website and filed with the SEC on or about November 6, 2012.

In the normal course of business, the Group enters into transactions with, and makes use of, SPEs. An SPE is an entity in the form of a trust or other legal structure designed to fulfill a specific limited need of the company that organized it and are generally structured to isolate the SPE’s assets from creditors of other entities, including the Group. The principal uses of SPEs are to assist the Group and its clients in securitizing financial assets and creating investment products. The Group also uses SPEs for other client-driven activity, such as to facilitate financings, and Group tax or regulatory purposes.

Transfers of financial assets

Securitizations

The majority of the Group’s securitization activities involve mortgages and mortgage-related securities and are predominantly transacted using SPEs. In a typical securitization, the SPE purchases assets financed by proceeds received from the SPE’s issuance of debt and equity instruments, certificates, commercial paper (CP) and other notes of indebtedness. These assets and liabilities are recorded on the balance sheet of the SPE and not reflected on the Group’s consolidated balance sheet, unless either the Group sold the assets to the entity and the accounting requirements for sale were not met or the Group consolidates the SPE.

The Group purchases commercial and residential mortgages for the purpose of securitization and sells these mortgage loans to SPEs. These SPEs issue CMBS and RMBS that are collateralized by the assets transferred to the SPE and that pay a return based on the returns on those assets. Investors in these mortgage-backed securities typically have recourse to the assets in the SPEs, unless a third-party guarantee has been received to further enhance the creditworthiness of the assets. The investors and the SPEs have no recourse to the Group’s assets. The Group is typically an underwriter of, and makes a market in, these securities.

The Group also transacts in re-securitizations of previously issued RMBS securities. Typically, certificates issued out of an existing securitization vehicle are sold into a newly created and separate securitization vehicle. Often, these re-securitizations are initiated in order to repackage an existing security to give the investor a higher rated tranche.

The Group also uses SPEs for other asset-backed financings relating to client-driven activity and for Group tax or regulatory purposes. Types of structures included in this category include collateralized debt obligations (CDOs), leveraged finance, repack and other types of transactions, including life insurance structures, emerging market structures set up for financing, loan participation or loan origination purposes, and other alternative structures created for the purpose of investing in venture capital-like investments. CDOs are collateralized by the assets transferred to the CDO vehicle and pay a return based on the returns on those assets. Leveraged finance structures are used to assist in the syndication of certain loans held by the Group, while repack structures are designed to give a client collateralized exposure to specific cash flows or credit risk backed by collateral purchased from the Group. In these asset-backed financing structures investors typically only have recourse to the collateral of the SPE and do not have recourse to the Group’s assets.

When the Group transfers assets into an SPE, it must assess whether that transfer is accounted for as a sale of the assets. Transfers of assets may not meet sale requirements if the assets have not been legally isolated from the Group and/or if the Group’s continuing involvement is deemed to give it effective control over the assets. If the transfer is not deemed a sale, it is instead accounted for as a secured borrowing, with the transferred assets as collateral.

Gains and losses on securitization transactions depend, in part, on the carrying values of mortgages and CDOs involved in the transfer and are allocated between the assets sold and any beneficial interests retained according to the relative fair values at the date of sale.

The Group does not retain material servicing responsibilities from securitization activities.

Continuing involvement in transferred financial assets

The Group may have continuing involvement in the financial assets that are transferred to an SPE which may take several forms, including, but not limited to, servicing, recourse and guarantee arrangements, agreements to purchase or redeem transferred assets, derivative instruments, pledges of collateral and beneficial interests in the transferred assets.

> Refer to “Transfer of financial assets” in V – Consolidated financial statements – Credit Suisse Group – Note 32 – Transfer of financial assets and variable interest entities in the Credit Suisse Annual Report 2011 for a detailed description of continuing involvement in transferred financial assets.

Variable interest entities

As a normal part of its business, the Group engages in various transactions that include entities that are considered VIEs and are grouped into three primary categories: CDOs, CP conduits and financial intermediation.

> Refer to “Transfer of financial assets” in V – Consolidated financial statements – Credit Suisse Group – Note 32 – Transfer of financial assets and variable interest entities in the Credit Suisse Annual Report 2011 for a detailed description of VIEs, CDOs, CP conduit or financial intermediation.

Collateralized debt obligations

The Group engages in CDO transactions to meet client and investor needs, earn fees and sell financial assets. The Group may act as underwriter, placement agent or asset manager and may warehouse assets prior to the closing of a transaction.

Commercial paper conduit

The Group continues to act as the administrator and provider of liquidity and credit enhancement facilities for one asset-backed CP conduit, Alpine, a client-focused multi-seller conduit vehicle. Alpine publishes portfolio and asset data and submits its portfolio to a rating agency for public ratings based on the cash flows of the portfolio taken as a whole. This CP conduit purchases assets, primarily loans and receivables, from clients and finances such purchases through the issuance of CP backed by these assets. For an asset to qualify for acquisition by the CP conduit, it must be rated at least investment grade after giving effect to the related asset-specific credit enhancement primarily provided by the client seller of the asset. The clients provide credit support to investors of the CP conduit in the form of over-collateralization and other asset-specific enhancements. Further, an unaffiliated investor retains a limited first-loss position in Alpine’s entire portfolio. Alpine is a separate legal entity that is wholly owned by the Group. However, its assets are available to satisfy only the claims of its creditors. In addition, the Group, as administrator and liquidity and credit enhancement facilities provider, has significant exposure to and power over the activities of Alpine. Alpine is considered a VIE for accounting purposes. Effective January 1, 2010, the Group was deemed the primary beneficiary of Alpine and consolidated it in accordance with new guidance.

The overall average maturity of the conduit’s outstanding CP was approximately 39 days and 18 days as of 3Q12 and 4Q11, respectively. As of 3Q12 and 4Q11, Alpine had the highest short-term ratings from Moody’s and Dominion Bond Rating Service and was rated A-1 by Standard & Poors and F-1 by Fitch. The majority of Alpine’s purchased assets were highly rated loans or receivables in the consumer sector, including auto and equipment loans or leases, student loans, advance financing receivables and credit card receivables. As of 3Q12 and 4Q11, those assets had an average rating of AA, based on the lowest of each asset’s external or internal rating, and an average maturity of 2.2 years and 2.5 years as of 3Q12 and 4Q11, respectively.

Financial intermediation

The Group has significant involvement with VIEs in its role as a financial intermediary on behalf of clients.

Financial intermediation consists of securitizations, funds, loans and other vehicles.

Note 26 Financial instruments

Concentrations of credit risk

Credit risk concentrations arise when a number of counterparties are engaged in similar business activities, are located in the same geographic region or when there are similar economic features that would cause their ability to meet contractual obligations to be similarly impacted by changes in economic conditions.

> Refer to “Note 33 – Financial instruments” in V – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2011 for further information on the Group’s concentrations of credit risk.

Fair value measurement

The required disclosures for the fair value of financial instruments will be included in the Financial Report 3Q12, which will be published on the Group’s website and filed with the SEC on or about November 6, 2012.

A significant portion of the Group’s financial instruments are carried at fair value. Deterioration of financial markets could significantly impact the fair value of these financial instruments and the results of operations.

The fair value of the majority of the Group’s financial instruments is based on quoted prices in active markets or observable inputs. These instruments include government and agency securities, certain CP, most investment grade corporate debt, certain high yield debt securities, exchange-traded and certain OTC derivative instruments and most listed equity securities.

In addition, the Group holds financial instruments for which no prices are available and which have little or no observable inputs. For these instruments, the determination of fair value requires subjective assessment and judgment, depending on liquidity, pricing assumptions, the current economic and competitive environment and the risks affecting the specific instrument. In such circumstances, valuation is determined based on management’s own judgments about the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. These instruments include certain OTC derivatives, including equity and credit derivatives, certain corporate equity-linked securities, mortgage-related and CDO securities, private equity investments, certain loans and credit products, including leveraged finance, certain syndicated loans and certain high yield bonds, and life finance instruments.

The fair value of financial assets and liabilities is impacted by factors such as benchmark interest rates, prices of financial instruments issued by third parties, commodity prices, foreign exchange rates and index prices or rates. In addition, valuation adjustments are an integral part of the valuation process when market prices are not indicative of the credit quality of a counterparty, and are applied to both OTC derivatives and debt instruments. The impact of changes in a counterparty’s credit spreads (known as credit valuation adjustments) is considered when measuring the fair value of assets and the impact of changes in the Group’s own credit spreads (known as DVA) is considered when measuring the fair value of its liabilities. For OTC derivatives, the impact of changes in both the Group’s and the counterparty’s credit standing is considered when measuring their fair value, based on current CDS prices. The adjustments also take into account contractual factors designed to reduce the Group’s credit exposure to a counterparty, such as collateral held and master netting agreements. For hybrid debt instruments with embedded derivative features, the impact of changes in the Group’s credit standing is considered when measuring their fair value, based on current funded debt spreads.

ASU 2011-04 permits a reporting entity to measure the fair value of a group of financial assets and financial liabilities on the basis of the price that would be received to sell a net long position or paid to transfer a net short position for a particular risk exposure in an orderly transaction between market participants at the measurement date. This change to the fair value measurement guidance is consistent with industry practice. As such, the Group continues to apply bid and offer adjustments to net portfolios of cash securities and/or derivative instruments to adjust the value of the net position from a mid-market price to the appropriate bid or offer level that would be realized under normal market conditions for the net long or net short position for a specific market risk. In addition, the Group reflects the net exposure to credit risk for its derivative instruments where the Group has legally enforceable agreements with its counterparties that mitigate credit risk exposure in the event of default. Valuation adjustments are recorded in a reasonable and consistent manner that results in an allocation to the relevant disclosures in the notes to the financial statements as if the valuation adjustment had been allocated to the individual unit of account.

Fair value hierarchy

The levels of the fair value hierarchy are defined as follows:

– Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group has the ability to access. This level of the fair value hierarchy provides the most reliable evidence of fair value and is used to measure fair value whenever available.

– Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. These inputs include: (i) quoted prices for similar assets or liabilities in active markets; (ii) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current or price quotations vary substantially either over time or among market makers, or in which little information is publicly available; (iii) inputs other than quoted prices that are observable for the asset or liability; or (iv) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

– Level 3: Inputs that are unobservable for the asset or liability. These inputs reflect the Group’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). These inputs are developed based on the best information available in the circumstances, which include the Group’s own data. The Group’s own data used to develop unobservable inputs is adjusted if information indicates that market participants would use different assumptions.

Note 27 Assets pledged or assigned

The required disclosures for assets pledged or assigned will be included in the Financial Report 3Q12, which will be published on the Group’s website and filed with the SEC on or about November 6, 2012.

The Group received collateral in connection with resale agreements, securities lending and loans, derivative transactions and margined broker loans. A substantial portion of the collateral received by the Group was sold or repledged in connection with repurchase agreements, securities sold not yet purchased, securities borrowings and loans, pledges to clearing organizations, segregation requirements under securities laws and regulations, derivative transactions and bank loans.

Note 28 Litigation

The Group is involved in a number of judicial, regulatory and arbitration proceedings concerning matters arising in connection with the conduct of its businesses. The Group’s material judicial, regulatory and arbitration proceedings, related provisions and estimate of the aggregate range of reasonably possible losses that are not covered by existing provisions are described in Note 37 – Litigation in V – Consolidated financial statements – Credit Suisse Group in the Credit Suisse Annual Report 2011 and updated in quarterly reports and below. Some of these proceedings have been brought on behalf of various classes of claimants and seek damages of material and/or indeterminate amounts.

The Group accrues litigation provisions (including fees and expenses of external lawyers and other service providers) in connection with certain judicial, regulatory and arbitration proceedings when losses, additional losses or ranges of loss are probable and reasonably estimable. The Group reviews its judicial, regulatory and arbitration proceedings each quarter to determine the adequacy of its litigation provisions and may increase or release provisions based on management’s judgment and the advice of counsel. Further increases or releases of litigation provisions may be necessary in the future as developments in such litigations, claims or proceedings warrant.

It is inherently difficult to determine whether a loss is probable or even reasonably possible or to estimate the amount of any loss or loss range for many of these matters. In presenting the condensed consolidated financial statements, management makes estimates regarding the outcome of these matters, records a provision and takes a charge to income when losses with respect to such matters are probable and can be reasonably estimated. Estimates, by their nature, are based on judgment and currently available information and involve a variety of factors, including, but not limited to, the type and nature of the litigation, claim or proceeding, the progress of the matter, the advice of legal counsel, the Group’s defenses and its experience in similar cases or proceedings, as well as its assessment of matters, including settlements, involving other defendants in similar or related cases or proceedings. Factual and legal determinations must be made before a loss, additional losses or ranges of loss can be reasonably estimated for any proceeding or matter.

Most matters pending against the Group seek damages of an indeterminate amount. While certain matters specify the damages claimed, such claimed amount may not represent reasonably possible losses. The Group’s aggregate litigation provisions include estimates of losses, additional losses or ranges of loss for proceedings for which such losses are probable and can be reasonably estimated. The Group does not believe that it can estimate an aggregate range of reasonably possible losses for certain of its proceedings because of the complexity of the proceedings, the novelty of some of the claims, the early stage of the proceedings and limited amount of discovery that has occurred and/or other factors. The Group’s estimate of the aggregate range of reasonably possible losses that are not covered by existing provisions is zero to CHF 2.9 billion.

In 3Q12, the Group recorded net litigation provisions of CHF 229 million, primarily concerning mortgage-related matters. After taking into account its litigation provisions, the Group believes, based on currently available information and advice of counsel, that the results of its proceedings, in the aggregate, will not have a material adverse effect on the Group’s financial condition. However, in light of the uncertainties involved in such proceedings, including those proceedings brought by regulators or other governmental authorities, the ultimate resolution of such proceedings may exceed current litigation provisions and any excess may be material to operating results for any particular period, depending, in part, upon the operating results for such period.

Mortgage-related matters

The amounts disclosed below do not reflect actual realized plaintiff losses to date or anticipated future litigation exposure. Rather, unless otherwise stated, these amounts reflect the original unpaid principal balance amounts as alleged in these actions and do not include any reduction in principal amounts since issuance.

Class action litigations

On August 17, 2012, the US District Court for the Southern District of New York (SDNY) granted plaintiff’s motion for class certification in In re IndyMac Mortgage-Backed Securities Litigation, in which Credit Suisse Securities (USA) LLC (CSS LLC) is named along with numerous other underwriters and individual defendants.

Individual investor actions

In actions brought in connection with being an RMBS issuer, underwriter and/or other participant, CSS LLC, and in some instances certain of its affiliates, have been named as defendants, along with other financial institutions in: one action brought by Royal Park Investments SA/NV, on July 27, 2012, in the Supreme Court for the State of New York, New York County (SCNY), in which claims against CSS LLC and its affiliates relate to approximately USD 403 million of RMBS at issue (approximately 4% of the USD 9.1 billion at issue against all banks); one action brought by John Hancock Life Insurance Co. (U.S.A.) and affiliated entities, on July 27, 2012, in the US District Court for the District of Minnesota, in which claims against CSS LLC relate to an unstated amount of RMBS at issue; four actions brought by the Federal Deposit Insurance Corporation (FDIC) as receiver for Colonial Bank, on August 10, 2012:  one action in the SDNY, in which claims against CSS LLC relate to approximately USD 92 million of RMBS at issue (approximately 23% of the USD 394 million at issue against all banks), one action in the US District Court for the Central District of California, in which claims against CSS LLC relate to approximately USD 12 million of RMBS at issue (approximately 5% of the USD 259 million at issue against all banks), and two actions in the Circuit Court of Montgomery County, Alabama, in which claims against CSS LLC and its affiliates relate to approximately USD 199 million of RMBS at issue (approximately 33% of the USD 594 million at issue against all banks); one action brought by Sealink Funding Limited, on August 23, 2012, in the SCNY, in which claims against CSS LLC and its affiliates relate to approximately USD 180 million of RMBS at issue (100% of the total amount at issue); one action brought by Minnesota Life Insurance Company and affiliated entities, on September 19, 2012, in the Second Judicial District Court, Ramsey County, Minnesota, in which claims against CSS LLC and its affiliates relate to approximately USD 43 million of RMBS at issue (100% of the total amount at issue); and one action brought by the National Credit Union Administration Board, as liquidating agent of the US Central Federal Credit Union, Western Corporate Federal Credit Union and Southwest Corporate Federal Credit Union, on October 4, 2012, in the US District Court for the District of Kansas, in which claims against CSS LLC and its affiliates relate to approximately USD 715 million of RMBS at issue (100% of the total amount at issue against all banks). On September 7, 2012, Asset Management Fund and affiliated entities filed a notice of discontinuance to discontinue their claims in their remaining action against CSS LLC and its affiliates and certain other banks, reducing the RMBS at issue relating to claims against CSS LLC and its affiliates by approximately USD 93 million to zero. On October 5, 2012, Phoenix Light SF Ltd. and affiliated entities filed a complaint relating to their claims against CSS LLC and its affiliates, reducing the RMBS at issue by approximately USD 104 million to approximately USD 362 million (approximately 13% of the USD 2.8 billion at issue against all banks).

Monoline insurer disputes

In the action brought by Assured Guaranty Corp., on October 11, 2012, the court dismissed certain claims against CSS LLC and its affiliates, including plaintiffs' demands for rescissory damages, indemnification, attorneys' and accountants' fees and expenses, and consequential damages.

Repurchase litigations

On July 31, 2012 and October 2, 2012, the Federal Housing Finance Agency (FHFA), as conservator for Freddie Mac, respectively on behalf of the Trustee of Home Equity Asset Trust 2006-6 and the Trustee of Home Equity Asset Trust 2006-7, filed actions against DLJ Mortgage Capital, Inc. (DLJ) in the SCNY. The actions allege that DLJ breached representations and warranties in respect of certain mortgage loans and failed to repurchase such mortgage loans as required under the applicable agreements. No damages amount is alleged in either action. On August 31, 2012, Home Equity Mortgage Trust Series 2006-1, Home Equity Mortgage Trust Series 2006-3, and Home Equity Mortgage Trust Series 2006-4 filed an action against DLJ and Select Portfolio Servicing, Inc. (SPS), in the SCNY. The action alleges that DLJ breached representations and warranties in respect of certain mortgage loans and failed to repurchase such mortgage loans as required under the applicable agreements, and that SPS obstructed the investigation into the full extent of the defects in the mortgage pools by refusing to afford the trustee reasonable access to certain origination files. Plaintiffs allege damages of not less than USD 720 million.

Note 29 Subsidiary guarantee information

Five wholly-owned finance subsidiaries of the Group, each of which is a Guernsey incorporated non-cellular company limited by shares, may issue contingent convertible securities fully and unconditionally guaranteed by the Group. There are various legal and regulatory requirements, including the satisfaction of a solvency test under Guernsey law, applicable to some of the Group’s subsidiaries that limit their ability to pay dividends or distributions and make loans and advances to the Group.

On March 26, 2007, the Group and the Bank issued full, unconditional and several guarantees of Credit Suisse (USA), Inc.’s outstanding SEC-registered debt securities. In accordance with the guarantees, if Credit Suisse (USA), Inc. fails to make any timely payment under the agreements governing such debt securities, the holders of the debt securities may demand payment from either the Group or the Bank, without first proceeding against Credit Suisse (USA), Inc. The guarantee from the Group is subordinated to senior liabilities. Credit Suisse (USA), Inc. is an indirect, wholly owned subsidiary of the Group.

Condensed consolidating statements of operations

in 3Q12	Credit Suisse (USA), Inc. consolidated	Bank parent company and other subsidiaries	1	Bank	Group parent company		Other Group subsidiaries	1	Credit Suisse Group
Condensed consolidating statements of operations (CHF million)
Interest and dividend income	1,797	2,988		4,785	16		122		4,923
Interest expense	(1,073)	(2,069)		(3,142)	(16)		(53)		(3,211)
Net interest income	724	919		1,643	0		69		1,712
Commissions and fees	1,067	2,163		3,230	(243)		237		3,224
Trading revenues	1,180	(1,156)		24	1		(28)		(3)
Other revenues	289	600		889	485	2	(463)		911
Net revenues	3,260	2,526		5,786	243		(185)		5,844
Provision for credit losses	0	19		19	0		22		41
Compensation and benefits	898	2,146		3,044	16		34		3,094
General and administrative expenses	541	1,305		1,846	(24)		40		1,862
Commission expenses	65	359		424	0		3		427
Total other operating expenses	606	1,664		2,270	(24)		43		2,289
Total operating expenses	1,504	3,810		5,314	(8)		77		5,383
Income/(loss) before taxes	1,756	(1,303)		453	251		(284)		420
Income tax expense/(benefit)	702	(601)		101	(3)		3		101
Net income/(loss)	1,054	(702)		352	254		(287)		319
Net income/(loss) attributable to noncontrolling interests	52	(735)		(683)	0		748		65
Net income/(loss) attributable to shareholders	1,002	33		1,035	254		(1,035)		254
1    Includes eliminations and consolidation adjustments.   2    Primarily consists of dividend income from investments in Group companies (CHF 0 million and CHF 0 million from bank and non-bank subsidiaries, respectively) and revenues from investments accounted for under the equity method.

Condensed consolidating statements of comprehensive income

in 3Q12	Credit Suisse (USA), Inc. consolidated	Bank parent company and other subsidiaries	1	Bank	Group parent company	Other Group subsidiaries	1	Credit Suisse Group
Comprehensive income (CHF million)
Net income/(loss)	1,054	(702)		352	254	(287)		319
Gains/(losses) on cash flow hedges	0	6		6	8	1		15
Foreign currency translation	(157)	(71)		(228)	1	1		(226)
Unrealized gains/(losses) on securities	0	(154)		(154)	0	7		(147)
Actuarial gains/(losses)	16	5		21	0	42		63
Net prior service cost	0	(1)		(1)	0	(15)		(16)
Other comprehensive income/(loss), net of tax	(141)	(215)		(356)	9	36		(311)
Comprehensive income/(loss)	913	(917)		(4)	263	(251)		8
Comprehensive income/(loss) attributable to noncontrolling interests	34	(761)		(727)	0	767		40
Comprehensive income/(loss) attributable to shareholders	879	(156)		723	263	(1,018)		(32)
1    Includes eliminations and consolidation adjustments.

Condensed consolidating statements of operations

in 3Q11	Credit Suisse (USA), Inc. consolidated	Bank parent company and other subsidiaries	1	Bank	Group parent company		Other Group subsidiaries	1	Credit Suisse Group
Condensed consolidating statements of operations (CHF million)
Interest and dividend income	1,805	3,425		5,230	40		105		5,375
Interest expense	(1,119)	(2,576)		(3,695)	(38)		4		(3,729)
Net interest income	686	849		1,535	2		109		1,646
Commissions and fees	821	2,173		2,994	2		65		3,061
Trading revenues	(1,452)	3,194		1,742	0		178		1,920
Other revenues	(69)	161		92	673	2	(703)		62
Net revenues	(14)	6,377		6,363	677		(351)		6,689
Provision for credit losses	3	60		63	0		21		84
Compensation and benefits	786	2,215		3,001	24		42		3,067
General and administrative expenses	381	1,833		2,214	(31)		26		2,209
Commission expenses	61	419		480	0		5		485
Total other operating expenses	442	2,252		2,694	(31)		31		2,694
Total operating expenses	1,228	4,467		5,695	(7)		73		5,761
Income/(loss) before taxes	(1,245)	1,850		605	684		(445)		844
Income tax expense/(benefit)	(424)	645		221	1		110		332
Net income/(loss)	(821)	1,205		384	683		(555)		512
Net income attributable to noncontrolling interests	(206)	65		(141)	0		(30)		(171)
Net income/(loss) attributable to shareholders	(615)	1,140		525	683		(525)		683
1    Includes eliminations and consolidation adjustments.   2    Primarily consists of dividend income from investments in Group companies (CHF 0 million and CHF 0 million from bank and non-bank subsidiaries, respectively) and revenues from investments accounted for under the equity method.

Condensed consolidating statements of comprehensive income

in 3Q11	Credit Suisse (USA), Inc. consolidated	Bank parent company and other subsidiaries	1	Bank	Group parent company	Other Group subsidiaries	1	Credit Suisse Group
Comprehensive income (CHF million)
Net income/(loss)	(821)	1,205		384	683	(555)		512
Gains/(losses) on cash flow hedges	0	(1)		(1)	0	1		0
Foreign currency translation	1,815	48		1,863	0	(21)		1,842
Unrealized gains/(losses) on securities	0	34		34	0	(6)		28
Actuarial gains/(losses)	12	2		14	0	17		31
Net prior service cost	0	1		1	0	3		4
Other comprehensive income/(loss), net of tax	1,827	84		1,911	0	(6)		1,905
Comprehensive income/(loss)	1,006	1,289		2,295	683	(561)		2,417
Comprehensive income/(loss) attributable to noncontrolling interests	270	382		652	0	(375)		277
Comprehensive income/(loss) attributable to shareholders	736	907		1,643	683	(186)		2,140
1    Includes eliminations and consolidation adjustments.

Condensed consolidating statements of operations

in 9M12	Credit Suisse (USA), Inc. consolidated	Bank parent company and other subsidiaries	1	Bank	Group parent company		Other Group subsidiaries	1	Credit Suisse Group
Condensed consolidating statements of operations (CHF million)
Interest and dividend income	5,634	11,212		16,846	68		348		17,262
Interest expense	(3,282)	(8,645)		(11,927)	(66)		(59)		(12,052)
Net interest income	2,352	2,567		4,919	2		289		5,210
Commissions and fees	2,940	6,472		9,412	(238)		352		9,526
Trading revenues	1,423	42		1,465	1		(124)		1,342
Other revenues	704	1,347		2,051	1,302	2	(1,265)		2,088
Net revenues	7,419	10,428		17,847	1,067		(748)		18,166
Provision for credit losses	(4)	55		51	0		49		100
Compensation and benefits	2,871	6,864		9,735	51		24		9,810
General and administrative expenses	1,341	3,825		5,166	(77)		99		5,188
Commission expenses	179	1,129		1,308	1		10		1,319
Total other operating expenses	1,520	4,954		6,474	(76)		109		6,507
Total operating expenses	4,391	11,818		16,209	(25)		133		16,317
Income/(loss) before taxes	3,032	(1,445)		1,587	1,092		(930)		1,749
Income tax expense/(benefit)	1,134	(756)		378	6		12		396
Net income/(loss)	1,898	(689)		1,209	1,086		(942)		1,353
Net income/(loss) attributable to noncontrolling interests	251	(646)		(395)	0		662		267
Net income/(loss) attributable to shareholders	1,647	(43)		1,604	1,086		(1,604)		1,086
1    Includes eliminations and consolidation adjustments.   2    Primarily consists of dividend income from investments in Group companies (CHF 183 million and CHF 29 million from bank and non-bank subsidiaries, respectively) and revenues from investments accounted for under the equity method.

Condensed consolidating statements of comprehensive income

in 9M12	Credit Suisse (USA), Inc. consolidated	Bank parent company and other subsidiaries	1	Bank	Group parent company	Other Group subsidiaries	1	Credit Suisse Group
Comprehensive income (CHF million)
Net income/(loss)	1,898	(689)		1,209	1,086	(942)		1,353
Gains/(losses) on cash flow hedges	0	7		7	18	0		25
Foreign currency translation	12	(353)		(341)	1	112		(228)
Unrealized gains/(losses) on securities	0	(32)		(32)	0	22		(10)
Actuarial gains/(losses)	35	12		47	0	135		182
Net prior service cost	(1)	0		(1)	0	(51)		(52)
Other comprehensive income/(loss), net of tax	46	(366)		(320)	19	218		(83)
Comprehensive income/(loss)	1,944	(1,055)		889	1,105	(724)		1,270
Comprehensive income/(loss) attributable to noncontrolling interests	263	(659)		(396)	0	644		248
Comprehensive income/(loss) attributable to shareholders	1,681	(396)		1,285	1,105	(1,368)		1,022
1    Includes eliminations and consolidation adjustments.

Condensed consolidating statements of operations

in 9M11	Credit Suisse (USA), Inc. consolidated	Bank parent company and other subsidiaries	1	Bank	Group parent company		Other Group subsidiaries	1	Credit Suisse Group
Condensed consolidating statements of operations (CHF million)
Interest and dividend income	5,663	11,821		17,484	125		300		17,909
Interest expense	(3,595)	(9,427)		(13,022)	(119)		8		(13,133)
Net interest income	2,068	2,394		4,462	6		308		4,776
Commissions and fees	2,864	7,117		9,981	7		207		10,195
Trading revenues	(1,132)	5,996		4,864	0		183		5,047
Other revenues	1,178	517		1,695	2,545	2	(2,521)		1,719
Net revenues	4,978	16,024		21,002	2,558		(1,823)		21,737
Provision for credit losses	4	38		42	0		48		90
Compensation and benefits	2,851	7,219		10,070	73		49		10,192
General and administrative expenses	1,238	4,291		5,529	(111)		75		5,493
Commission expenses	193	1,301		1,494	1		17		1,512
Total other operating expenses	1,431	5,592		7,023	(110)		92		7,005
Total operating expenses	4,282	12,811		17,093	(37)		141		17,197
Income/(loss) before taxes	692	3,175		3,867	2,595		(2,012)		4,450
Income tax expense/(benefit)	(89)	1,012		923	5		140		1,068
Net income/(loss)	781	2,163		2,944	2,590		(2,152)		3,382
Net income attributable to noncontrolling interests	741	117		858	0		(66)		792
Net income/(loss) attributable to shareholders	40	2,046		2,086	2,590		(2,086)		2,590
1    Includes eliminations and consolidation adjustments.   2    Primarily consists of dividend income from investments in Group companies (CHF 320 million and CHF 18 million from bank and non-bank subsidiaries, respectively) and revenues from investments accounted for under the equity method.

Condensed consolidating statements of comprehensive income

in 9M11	Credit Suisse (USA), Inc. consolidated	Bank parent company and other subsidiaries	1	Bank	Group parent company	Other Group subsidiaries	1	Credit Suisse Group
Comprehensive income (CHF million)
Net income/(loss)	781	2,163		2,944	2,590	(2,152)		3,382
Gains/(losses) on cash flow hedges	0	(23)		(23)	(5)	1		(27)
Foreign currency translation	(760)	(433)		(1,193)	1	20		(1,172)
Unrealized gains/(losses) on securities	0	(4)		(4)	0	(6)		(10)
Actuarial gains/(losses)	24	9		33	0	51		84
Net prior service cost	0	0		0	0	10		10
Other comprehensive income/(loss), net of tax	(736)	(451)		(1,187)	(4)	76		(1,115)
Comprehensive income/(loss)	45	1,712		1,757	2,586	(2,076)		2,267
Comprehensive income/(loss) attributable to noncontrolling interests	569	(40)		529	0	85		614
Comprehensive income/(loss) attributable to shareholders	(524)	1,752		1,228	2,586	(2,161)		1,653
1    Includes eliminations and consolidation adjustments.

Condensed consolidating balance sheets

end of 3Q12	Credit Suisse (USA), Inc. consolidated	Bank parent company and other subsidiaries	1	Bank	Group parent company	Other Group subsidiaries	1	Credit Suisse Group
Assets (CHF million)
Cash and due from banks	3,760	83,216		86,976	15	(14)		86,977
Interest-bearing deposits with banks	88	3,977		4,065	0	(1,800)		2,265
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	142,653	61,597		204,250	0	10		204,260
Securities received as collateral	35,607	(3,269)		32,338	0	0		32,338
Trading assets	96,227	192,470		288,697	0	(114)		288,583
Investment securities	0	2,107		2,107	0	1,627		3,734
Other investments	6,755	6,078		12,833	35,457	(35,179)		13,111
Net loans	23,217	204,667		227,884	4,445	10,127		242,456
Premises and equipment	1,086	5,433		6,519	0	205		6,724
Goodwill	597	7,115		7,712	0	891		8,603
Other intangible assets	101	180		281	0	0		281
Brokerage receivables	25,683	28,946		54,629	0	1		54,630
Other assets	16,217	62,974		79,191	236	(97)		79,330
Total assets	351,991	655,491		1,007,482	40,153	(24,343)		1,023,292
Liabilities and equity (CHF million)
Due to banks	178	40,220		40,398	3,940	(3,642)		40,696
Customer deposits	2	309,227		309,229	0	10,603		319,832
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	148,383	20,541		168,924	0	0		168,924
Obligation to return securities received as collateral	35,607	(3,269)		32,338	0	0		32,338
Trading liabilities	27,506	86,623		114,129	0	(196)		113,933
Short-term borrowings	20,765	3,020		23,785	0	3,803		27,588
Long-term debt	35,595	113,168		148,763	448	508		149,719
Brokerage payables	51,365	17,148		68,513	0	(1)		68,512
Other liabilities	11,189	47,351		58,540	83	294		58,917
Total liabilities	330,590	634,029		964,619	4,471	11,369		980,459
Total shareholders' equity	17,358	17,371		34,729	35,682	(34,729)		35,682
Noncontrolling interests	4,043	4,091		8,134	0	(983)		7,151
Total equity	21,401	21,462		42,863	35,682	(35,712)		42,833
Total liabilities and equity	351,991	655,491		1,007,482	40,153	(24,343)		1,023,292
1    Includes eliminations and consolidation adjustments.

Condensed consolidating balance sheets

end of 4Q11	Credit Suisse (USA), Inc. consolidated	Bank parent company and other subsidiaries	1	Bank	Group parent company	Other Group subsidiaries	1	Credit Suisse Group
Assets (CHF million)
Cash and due from banks	3,698	107,526		111,224	13	(664)		110,573
Interest-bearing deposits with banks	87	4,106		4,193	0	(1,921)		2,272
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions	153,625	83,310		236,935	0	28		236,963
Securities received as collateral	34,189	(3,998)		30,191	0	0		30,191
Trading assets	91,458	188,290		279,748	0	(195)		279,553
Investment securities	0	3,652		3,652	0	1,508		5,160
Other investments	6,719	6,196		12,915	34,137	(33,826)		13,226
Net loans	24,658	194,776		219,434	5,603	8,376		233,413
Premises and equipment	1,110	5,880		6,990	0	203		7,193
Goodwill	597	7,103		7,700	0	891		8,591
Other intangible assets	112	168		280	0	8		288
Brokerage receivables	17,951	25,494		43,445	0	1		43,446
Other assets	16,114	61,966		78,080	190	26		78,296
Total assets	350,318	684,469		1,034,787	39,943	(25,565)		1,049,165
Liabilities and equity (CHF million)
Due to banks	92	39,985		40,077	4,697	(4,627)		40,147
Customer deposits	0	304,130		304,130	0	9,271		313,401
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions	151,655	24,904		176,559	0	0		176,559
Obligation to return securities received as collateral	34,189	(3,998)		30,191	0	0		30,191
Trading liabilities	29,291	98,518		127,809	0	(49)		127,760
Short-term borrowings	15,881	10,235		26,116	0	0		26,116
Long-term debt	40,029	121,324		161,353	1,444	(142)		162,655
Brokerage payables	47,847	20,187		68,034	0	0		68,034
Other liabilities	10,124	52,043		62,167	128	922		63,217
Total liabilities	329,108	667,328		996,436	6,269	5,375		1,008,080
Total shareholders' equity	16,979	12,424		29,403	33,674	(29,403)		33,674
Noncontrolling interests	4,231	4,717		8,948	0	(1,537)		7,411
Total equity	21,210	17,141		38,351	33,674	(30,940)		41,085
Total liabilities and equity	350,318	684,469		1,034,787	39,943	(25,565)		1,049,165
1    Includes eliminations and consolidation adjustments.

List of abbreviations

A
ADS	American Depositary Share
AMF	Asset Management Finance LLC
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
B
BCBS	Basel Committee on Banking Supervision
BCN	Buffer Capital Note
BIS	Bank for International Settlements
bp	basis point
C
CDO	Collateralized Debt Obligation
CDS	Credit Default Swap
CET1	Common Equity Tier 1
CFTC	US Commodities Futures Trading Commission
CMBS	Commercial Mortgage-backed Securities
CP	Commercial Paper
D
DLJ	DLJ Mortgage Capital, Inc.
DVA	Debit Valuation Adjustments
E
ECB	European Central Bank
EMEA	Europe, Middle East and Africa
ESM	European Stability Mechanism
ETF	Exchange-Traded Funds
EU	European Union
F
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
Fed	US Federal Reserve
FINMA	Swiss Financial Market Supervisory Authority
G
G-20	Group of Twenty Finance Ministers and Central Bank Governors
G-SIB	Global Systemically Important Bank
GSE	Government-Sponsored Enterprise
I
IFRS	International Financial Reporting Standards
IPO	Initial Public Offering
ISU	Incentive Share Unit
IT	Information Technology
K
KPI	Key Performance Indicator
L
LCR	Liquidity Coverage Ratio
LGD	Loss Given Default
M
MACCS	Mandatory and Contingent Convertible Securities
M&A	Mergers and Acquisitions
N
NAV	Net Asset Value
NRV	Negative Replacement Value
NSFR	Net Stable Funding Ratio
O
OTC	Over-The-Counter
P
PAF	2008 Partner Asset Facility
PIPE	Private Investment in Equity
Q
QoQ	Quarter on Quarter
R
RMBS	Residential Mortgage-backed Securities
RWA	Risk-Weighted Assets
S
SCNY	Supreme Court for the State of New York, New York County
SDNY	Southern District of New York
SEC	US Securities and Exchange Commission
SEI	Significant Economic Interest
SISU	Scaled Incentive Share Unit
SNB	Swiss National Bank
SPE	Special Purpose Entity
SPS	Select Portfolios Services, Inc.
U
UK	United Kingdom
UHNWI	Ultra-High-Net-Worth Individual
US	United States of America
US GAAP	Accounting Principles Generally Accepted in the US
V
VaR	Value-at-Risk
VIE	Variable Interest Entity
VIX	Chicago Board Options Exchange Market Volatility Index
Y
YoY	Year on Year
Ytd	Year to Date

Investor information

Share data
	in / end of
	9M12	2011		2010		2009
Share price (common shares, CHF)
Average	21.04	31.43		45.97		45.65
Minimum	16.01	19.65		37.04		22.48
Maximum	27.20	44.99		56.40		60.40
End of period	19.93	22.07		37.67		51.20
Share price (American Depositary Shares, USD)
Average	22.46	35.36		44.16		42.61
Minimum	16.20	21.20		36.54		19.04
Maximum	29.69	47.63		54.57		59.84
End of period	21.15	23.48		40.41		49.16
Market capitalization
Market capitalization (CHF million)	26,309	27,021		44,683		60,691
Market capitalization (USD million)	27,920	28,747		47,933		58,273
Dividend per share (CHF)
Dividend per share	–	0.75	1, 2	1.30	2	2.00
1    The distribution was payable in cash or, subject to any legal restrictions applicable in shareholders’ home jurisdictions, in new shares of Credit Suisse Group at the option of the shareholder.   2    Paid out of reserves from capital contributions.

Ticker symbols / stock exchange listings
	Common shares	ADS	1
Ticker symbols
Bloomberg	CSGN VX	CS US
Reuters	CSGN.VX	CS.N
Telekurs	CSGN,380	CS,065
Stock exchange listings
Swiss security number	1213853	570660
ISIN number	CH0012138530	US2254011081
CUSIP number	–	225 401 108
1    One American Depositary Share (ADS) represents one common share.

Bond ratings
as of October 23, 2012	Moody's	Standard & Poor's	Fitch Ratings
Credit Suisse Group ratings
Short-term	–	–	F1
Long-term	A2	A	A
Outlook	Stable	Negative	Stable
Credit Suisse (the Bank) ratings
Short-term	P-1	A-1	F1
Long-term	A1	A+	A
Outlook	Stable	Negative	Stable

Financial calendar and contacts

Financial calendar
Fourth quarter / Full year 2012 results	Thursday, February 7, 2013
Annual General Meeting	Friday, April 26, 2013
Investor relations
Phone	+41 44 333 71 49
E-mail	investor.relations@credit-suisse.com
Internet	www.credit-suisse.com/investors
Media relations
Phone	+41 844 33 88 44
E-mail	media.relations@credit-suisse.com
Internet	www.credit-suisse.com/news
Additional information
Results and financial information	www.credit-suisse.com/results
Printed copies	Credit Suisse AG
	Publikationenbestellungen/TLSA 221
	P.O. Box
	8070 Zurich
	Switzerland
US share register and transfer agent
ADS depositary bank	Deutsche Bank Trust Company Americas
Address	Credit Suisse c/o
	American Stock Transfer & Trust Co.
	Peck Slip Station
	P.O. Box 2050
	New York, NY 10272-2050
	United States
US and Canada phone	+1 800 301 35 17
Phone from outside US and Canada	+1 718 921 81 37
E-mail	DB@amstock.com
Swiss share register and transfer agent
Address	Credit Suisse Group AG
	Dept. RXS
	8070 Zurich
	Switzerland
Phone	+41 44 332 26 60
Fax	+41 44 332 98 96

Foreign currency translation rates
	End of				Average in			Average in
	3Q12	2Q12	4Q11	3Q11	3Q12	2Q12	3Q11	9M12	9M11
1 USD / 1 CHF	0.94	0.95	0.94	0.91	0.96	0.93	0.82	0.94	0.87
1 EUR / 1 CHF	1.21	1.20	1.22	1.22	1.20	1.20	1.17	1.20	1.24
1 GBP / 1 CHF	1.52	1.48	1.45	1.42	1.51	1.48	1.33	1.48	1.41
100 JPY / 1 CHF	1.21	1.19	1.21	1.18	1.22	1.17	1.06	1.18	1.09

Cautionary statement regarding forward-looking information

This report contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to the following:

– our plans, objectives or goals;

– our future economic performance or prospects;

– the potential effect on our future performance of certain contingencies; and

– assumptions underlying any such statements.

Words such as “believes,” “anticipates,” “expects,” “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable securities laws.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include:

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

– market and interest rate fluctuations and interest rate levels;

– the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations, in particular the risk of continued slow economic recovery or downturn in the US or other developed countries in 2012 and beyond;

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

– adverse rating actions by credit rating agencies in respect of sovereign issuers, structured credit products or other credit-related exposures;

– the ability to achieve our strategic objectives, including improved performance, reduced risks, lower costs and more efficient use of capital;

– the ability of counterparties to meet their obligations to us;

– the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations;

– political and social developments, including war, civil unrest or terrorist activity;

– the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations;

– operational factors such as systems failure, human error, or the failure to implement procedures properly;

– actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations;

– the effects of changes in laws, regulations or accounting policies or practices;

– competition in geographic and business areas in which we conduct our operations;

– the ability to retain and recruit qualified personnel;

– the ability to maintain our reputation and promote our brand;

– the ability to increase market share and control expenses;

– technological changes;

– the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users;

– acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets;

– the adverse resolution of litigation and other contingencies;

– the ability to achieve our cost-efficiency goals and cost targets; and

– our success at managing the risks involved in the foregoing.

We caution you that the foregoing list of important factors is not exclusive. When evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the information set forth in “Risk factors” in the Appendix of our Annual Report 2011.

Our 2011 annual publication suite consisting of Annual Report, Company Profile and Corporate Responsibility Report is available on our website www.credit-suisse.com/investors

Photography: Alberto Venzago

Production: Management Digital Data AG

Printer: Neidhart + Schön AG