Profile: Credit Suisse Group AG (CS)
7 Mar 2014
Credit Suisse Group AG (Credit Suisse) is a global financial services company. The Company operates in three segments: Private Banking, Investment Banking and Asset Management. In Private Banking, it offers advice and a range of financial solutions to private, corporate and institutional clients. Investment Banking provides a range of financial products and services, with a focus on businesses that are client-driven, flow-based and capital-efficient. Asset Management offers products across a range of asset classes, including alternative investments such as hedge funds, private equity, real estate and credit, and multi-asset class solutions, which includes equities and fixed income products. On April 30, 2011, Credit Suisse completed the acquisition of ABN AMRO Bank’s (formerly Fortis Bank Nederland) hedge fund administration business. In February 2012, the Company sold an interest in Aberdeen. On March 24, 2011, Credit Suisse Group AG owned 100% interest in Neue Aargauer Bank AG. In January 2013, Grosvenor Capital Management, L.P. and its affiliates acquired Customized Fund Investment Group, from Credit Suisse Group AG.
In the Private Banking segment, the Company offers advice and a range of wealth management solutions, including pension planning, life insurance products, tax planning, and wealth and inheritance advice, which are tailored to the needs of high-net-worth and ultra-high-net-worth individuals worldwide. In Switzerland, it supplies banking products and services to individual clients, including high-net-worth and ultra-high-net-worth clients, and corporate and institutions.
The Company’s Corporate & Institutional Clients business serves the needs of over 100,000 corporations and institutions, mainly in Switzerland, and is a provider of financial products and services. The Wealth Management Clients business offers its clients a distinct value proposition, combining a global reach with a structured advisory process and access to a range of products and services. During the year ended December 31, 2011, the Company’s Wealth Management Clients business had CHF 791.5 billion of assets under management. Its Corporate & Institutional Clients business provides advice and solutions across a range of banking services, including lending, cash and liquidity management, trade finance, ship and aviation finance, corporate finance, investment solutions, global custody and asset and liability management. Clients include small and medium-sized enterprises, global corporations and commodity traders, banks, insurance companies and Swiss pension funds. In Switzerland, it covers corporations out of four locations and it serves small and medium-sized enterprises through relationship managers based in 36 branches.
The Company offers solutions for a range of private and corporate wealth management needs, including succession planning, tax advisory, financial planning and investment banking services. It offers a range of investment advice and discretionary asset management services based on the outcome of its structured advisory process. Its investment advice covers a range of services from portfolio consulting to advising on individual investments. It offers clients portfolio and risk management solutions, including managed investment products. For clients with more requirements, it provides investment portfolio structuring and the implementation of individual strategies, including a range of structured products and alternative investments. Discretionary asset management services are available to clients who wish to delegate the responsibility for investment decisions to Credit Suisse. In close collaboration with Investment Banking and Asset Management, it also provides alternative investments with limited correlation to equities and bonds, such as hedge funds, private equity, commodities and real estate.
With global operations comprising 21 international booking centers in addition to its operations in Switzerland, the Company is able to offer its clients booking capabilities locally, as well as through its international hubs. Its multi-shore offering is designed to serve clients who are focused on geographical risk diversification, have multiple domiciles, seek access to global execution services or are interested in a range of products than are available to them locally.
The Company also offers a range of financing products, such as construction loans, fixed and variable rate mortgages, consumer and car loans, different types of leasing arrangements and various credit cards provided by Swisscard, a joint venture between Credit Suisse and American Express. Additionally, it provides flexible financial solutions for every stage of a private client’s life, including private accounts, payment transactions, foreign exchange services, pension products and life insurance. The range of savings products available to private clients includes savings accounts, savings plan funds and insurance solutions. Its core banking product, Bonviva, combines accounts, payment services and credit cards, simplifying day-to-day banking with a fixed package price.
In Corporate & Institutional Clients, the Company supply a range of financial solutions, including cash management and payment transactions, all forms of traditional and structured lending, capital goods and real estate leasing, investment solutions and specialized services, such as corporate finance, trade finance, ship and aviation financing, global custody and asset and liability management. In addition, it offers specialized products and services, such as multi-currency foreign exchange trading and various straight-through-processing solutions, such as brokerage and execution services.
The Company’s range of products and services includes global securities sales, trading and execution, prime brokerage and capital raising and advisory services, as well as investment research. Its clients include corporations, governments, pension funds and institutions worldwide. Its activities are organized around two functional areas: investment banking and global securities. In investment banking, the Company works in industry, product and country groups. The industry groups include energy, financial institutions, financial sponsors, industrial and services, healthcare, media and telecom, real estate and technology. The product groups include merger and acquisitions (M&A), and financing products. In global securities, it engages in a range of activities across fixed income, currencies, commodities, derivatives and cash equities markets, including sales, structuring, trading, financing, prime brokerage, syndication and origination, with a focus on client-based and flow-based businesses.
Equity capital markets originates, syndicates and underwrites equity in initial public offers (IPOs), common and convertible stock issues, acquisition financing and other equity issues. Debt capital markets originates, syndicates and underwrites corporate and sovereign debt. Advisory services advise clients on all aspects of M&A, corporate sales and restructurings, divestitures and takeover defense strategies. Credit Suisse provides access to a range of debt and equity securities, derivative products and financing opportunities across the capital spectrum to corporate, sovereign and institutional clients. Its arbitrage trading business focuses on quantitative and liquid trading strategies in the major global equity and fixed income markets. Other products and activities include lending, private equity investments that are not managed by Asset Management, certain real estate investments and the distressed asset portfolios. Lending includes senior bank debt in the form of syndicated loans and commitments to extend credit to investment grade and non-investment grade borrowers.
Asset Management offers investment solutions and services globally to a range of clients, including pension funds, governments, foundations and endowments, corporations and individuals. It invests across a range of asset classes with a focus on alternative investment strategies, emerging markets, asset allocation and traditional investment strategies. Asset Management offers institutional and individual clients a range of products, such as alternative and traditional products. The Company reaches out clients through its own distribution teams, the Private Banking and Investment Banking divisions and through it’s and third-party distribution channels. It also offers investment strategies through joint ventures with external managers across various regions and asset classes.
The Company has a range of alternative investments products, including private equity, real estate and liquid strategies, including single-manager hedge funds, multi-manager hedge funds, credit strategies and exchange traded fund (ETF) and index strategies. It also offers a range of strategies focused on emerging markets through a range of products including hedge funds, private equity, real assets, index strategies, fixed income and equity solutions.
The Company offers liquid, systematic market exposure to equity, fixed income, real estate, commodity, volatility and hedge fund markets through enhanced index or passive investment strategies. Its indexed solutions business and ETF franchise allow institutions and individual clients to access a variety of asset classes in an effective manner. Its credit strategies business focuses on alpha generation within the non-investment grade credit markets, capitalizing on the relative value provided by various debt instruments and economic fluctuations that impact credit risk premiums.
In emerging markets, the Company offers a range of Brazil-focused products through Credit Suisse Asset Management Brazil and Credit Suisse Hedging Griffo. Its Brazilian platform provides a range of institutional-quality products, including fixed income, equities and hedge solutions. Through its relationship with ICBC in China, it offers investment products to local clients ICBC’s distribution network.
Credit Suisse Group AG