Annual Report 2014

Annual Report 2014
Credit Suisse Group AG

Key metrics

in / end of
% change

2014
2013
2012
14 / 13
13 / 12
Credit Suisse (CHF million, except where indicated)

Net income attributable to shareholders
1,875
2,326
1,349
(19)
72
   of which from continuing operations
1,773
2,181
1,389
(19)
57
Basic earnings per share from continuing operations (CHF)
1.02
1.14
0.82
(11)
39
Diluted earnings per share from continuing operations (CHF)
1.01
1.14
0.82
(11)
39
Return on equity attributable to shareholders (%)
4.4
5.7
3.9
–
–
Effective tax rate (%)
38.7
31.2
21.2
–
–
Core Results (CHF million, except where indicated)

Net revenues
25,815
25,217
23,251
2
8
Provision for credit losses
186
167
170
11
(2)
Total operating expenses
22,397
21,546
21,193
4
2
Income from continuing operations before taxes
3,232
3,504
1,888
(8)
86
Cost/income ratio (%)
86.8
85.4
91.1
–
–
Pre-tax income margin (%)
12.5
13.9
8.1
–
–
Strategic results (CHF million, except where indicated)

Net revenues
25,126
25,475
25,385
(1)
0
6,790
7,173
6,295
(5)
14
Cost/income ratio (%)
72.4
71.5
74.7
–
–
Return on equity – strategic results (%)
12.2
13.4
–
–
–
Non-strategic results (CHF million)

Net revenues
689
(258)
(2,134)
–
(88)
Loss from continuing operations before taxes
(3,558)
(3,669)
(4,407)
(3)
(17)
Assets under management and net new assets (CHF billion)

Assets under management from continuing operations
1,377.3
1,253.4
1,197.8
9.9
4.6
Net new assets from continuing operations
30.2
36.1
11.4
(16.3)
216.7
Balance sheet statistics (CHF million)

Total assets
921,462
872,806
924,280
6
(6)
Net loans
272,551
247,054
242,223
10
2
Total shareholders’ equity
43,959
42,164
35,498
4
19
Tangible shareholders’ equity
35,066
33,955
26,866
3
26
Basel III regulatory capital and leverage statistics

Risk-weighted assets (CHF million)
291,410
273,846
292,481
6
(6)
CET1 ratio (%)
14.9
15.7
14.2
–
–
Look-through CET1 ratio (%)
10.1
10.0
8.0
–
–
Swiss leverage ratio (%)
4.9
5.1
–
–
–
Look-through Swiss leverage ratio (%)
3.9
3.7
–
–
–
Share information

Shares outstanding (million)
1,599.5
1,590.9
1,293.8
1
23
   of which common shares issued
1,607.2
1,596.1
1,320.8
1
21
   of which treasury shares
(7.7)
(5.2)
(27.0)
48
(81)
Book value per share (CHF)
27.48
26.50
27.44
4
(3)
Tangible book value per share (CHF)
21.92
21.34
20.77
3
3
Market capitalization (CHF million)
40,308
43,526
29,402
(7)
48
Dividend per share
0.70
0.70
0.75
–
–
Number of employees (full-time equivalents)

Number of employees
45,800
46,000
47,400
0
(3)
See relevant tables for additional information on these metrics.

Since 1873, this historical building situated at Paradeplatz, in the
heart of Zurich, houses the headquarters of Credit Suisse, formerly
the Schweizerische Kreditanstalt (SKA).
For more information about the art on the cover,
view the video at: www.credit-suisse.com/ar/video2014

Credit Suisse Annual Reporting Suite
Annual Report
The Annual Report is a detailed presen-
tation of the Group’s annual financial
statements, company structure, corporate
governance and compensation practices,
treasury and risk management framework
and a review of our operating and financial
results.
Company Profile
The Company Profile contains a summary
of the strategic direction of Credit Suisse,
an overview of its organization and a brief
description of its key businesses.
Corporate Responsibility Report
The Corporate Responsibility Report
provides a detailed presentation on how
the Group assumes its various responsi-
bilities as a bank towards society and the
environment. This publication is comple-
mented by the Responsibility Chronicle,
which adds a multimedia dimension to our
reporting.
Company
Profile 2014Annual Report 2014
Credit Suisse Group AG
Corporate Responsibility
Report 2014

For the purposes of this report, unless the context otherwise requires, the terms “Credit Suisse Group”, “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 referring only to Credit Suisse
AG, the Swiss bank subsidiary of the Group, and its consolidated subsidiaries. Abbreviations and selected qterms are explained in the List of abbreviations and the
Glossary in the back of this report. Publications referenced in this report, whether via website links or otherwise, are not incorporated into this report. The English
language version of this report is the controlling version. In various tables, use of “–” indicates not meaningful or not applicable.
Investor Relations and Media
allows investors, analysts, media and other interested parties
to remain up to date with relevant online and offline financial
information on Credit Suisse.
The Swiss Financial Center and Credit Suisse
provides an overview of the activities performed by Credit Suisse
in Switzerland and the bank’s multifaceted commitment to the
Swiss financial center and economy.
News & Expertise by Credit Suisse
bundles expert knowledge of Credit Suisse into a dynamic news
application, focusing on global trends in economics and finance.
Credit Suisse Mobile Banking
places all the advantages at your fingertips – anytime, anywhere.
Use your mobile phone to pay bills, review credit card transactions,
catch up on financial information, or track your safekeeping and
other accounts in real time.
Credit Suisse Apps

Message from the Chairman
and the Chief Executive Officer 5
I – Information on
the company 11
Credit Suisse at a glance 12
Strategy 13
Our businesses 16
Organizational and regional structure 24
Regulation and supervision 26
Risk factors 39
II – Operating and
financial review 47
Operating environment 48
Credit Suisse 51
Core Results 59
Private Banking &
Wealth Management 67
Investment Banking 80
Corporate Center 87
Assets under management 90
Critical accounting estimates 93
III – Treasury, Risk,
Balance sheet and
Off-balance sheet 99
Liquidity and funding management 100
Capital management 108
Risk management 126
Balance sheet, off-balance sheet
and other contractual obligations 161
IV – Corporate
Governance and
Compensation 165
Corporate Governance 166
Compensation 196
V – Consolidated
financial statements –
Credit Suisse Group 229
Report of the Statutory Auditor 231
Consolidated financial statements 233
Notes to the consolidated
financial statements 240
Controls and procedures 375
Report of the Independent
Registered Public Accounting Firm 376
VI – Parent company
financial statements –
Credit Suisse Group 377
Report of the Statutory Auditor 379
Parent company
financial statements 381
Notes to the financial statements 383
Proposed appropriation of retained
earnings and capital distribution 387
Report on the conditional increase
of share capital 388
Appendix A-1
Selected five-year information A-2
List of abbreviations A-4
Glossary A-6
Investor information A-10
Financial calendar and contacts A-12

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

5

Message from the Chairman and
the Chief Executive Officer
Dear shareholders, clients and colleagues
2014 was a challenging year for Credit Suisse but also a period
of continued progress. We faced a more uncertain and volatile
economic, political and market environment, along with continued
regulatory reform. We have made significant progress in recent
years to anticipate these developments and proactively transform
Credit Suisse in response to this evolving operating environment.
Notwithstanding the pace and magnitude of change, our busi-
nesses delivered a robust performance and we saw continued
momentum with clients. It is clear that we must continue to adapt
to best serve our clients and to further improve profitability and
shareholder returns.
In the past year, we were able to resolve certain significant
legacy issues. Looking back, the settlement with the US authori-
ties regarding all outstanding cross-border matters in May marked
an important turning point. It was critical for us as an organization
to resolve this longstanding legacy litigation issue. We would like
to reiterate that we deeply regret the past misconduct that led to
this settlement.
In spite of this challenging backdrop, our clients’ continued
trust and support as well as our employees’ dedication and profes-
sionalism helped us mitigate the impact of the settlement on our
business and our results. We have since refocused our resources
on serving our clients, driving our strategy forward and implement-
ing the targeted growth initiatives that we have defined.
Economic and political trends that shaped the market
A leading US economic newspaper described 2014 as a “year
of market surprises”, stating that most economic forecasts for
the year were inaccurate. Although economists expected interest
rates to increase in 2014, they remained at historically low levels
throughout the year. This impacted revenue streams in the wealth
management industry and further increased the pressure on gross
margins, making it even more important for banks to improve the
cost efficiency of their business models.
Markets were also impacted by the uncertainty resulting
from various political crises around the world. The Ukraine crisis
weighed heavily on European economies in particular, while con-
flicts in parts of the Middle East added to the climate of uncer-
tainty. Additionally, the ongoing Greek debt negotiations fuelled
fresh concerns about the possible destabilization of Europe’s
monetary union. Meanwhile, the real estate downturn in China
prompted fears of an economic slowdown. However, the Chinese
economy performed relatively well compared to Brazil and Russia,
which indicators suggest are heading toward recession. In con-
trast, the US had solid growth in 2014, coupled with the apprecia-
tion of the US dollar against all major currencies. Another develop-
ment that most experts did not anticipate was the sharp decline
in energy prices and other commodities in the fourth quarter.
While this generally had a stimulating effect on the global econ-
omy, it negatively impacted the economies of commodity exporting
nations and investments in those countries, as well as compa-
nies in the energy sector. It also resulted in higher market volatility
toward the end of the year.
Throughout 2014 and the beginning of 2015, there were sev-
eral central bank actions, many of which had significant implica-
tions for the banking sector. In October 2014, the US Federal
Reserve ended its asset purchase program as a result of improv-
ing market conditions, while in January 2015, the European Cen-
tral Bank announced its intention to increase market liquidity by
launching purchases of private sector fixed income instruments
and raising the size of long-term loans to the banking system.
However, for Switzerland and Credit Suisse, the most significant
central bank action was the Swiss National Bank’s decision on
January 15, 2015 to discontinue the minimum exchange rate of
CHF 1.20 per euro and introduce negative short-term interest
rates. These actions dramatically altered the market environment
for a number of Swiss companies, which typically incur the majority
of their expenses in Swiss francs, while generating a large propor-
tion of their revenues in other currencies.
In order to moderate the negative impact on Credit Suisse, we
have announced a number of mitigating actions, including a com-
bination of incremental cost reductions and previously announced
revenue growth initiatives. We expect to more than offset the
impact of the changed conditions by the end of 2017, while con-
tinuing to drive growth in Private Banking & Wealth Management.
The macroeconomic environment is likely to remain chal-
lenging throughout the rest of 2015. While the global economic
recovery is expected to continue, aided by US momentum and a
gradual recovery of the eurozone private sector, geopolitical risks
are expected to persist. Above all, the unresolved conflict in the
Ukraine, fragmentation risks in Europe and tensions within the
Middle East will likely cause further political uncertainty. Simi-
larly, actions by central banks are expected to remain a key theme
throughout 2015.

6
Developments that impacted the banking industry
A number of important regulatory developments in 2014 helped
provide greater clarity about the future regulatory framework. Nev-
ertheless, we expect banking regulation to continue to evolve sig-
nificantly going forward. We must therefore ensure that we con-
tinue to anticipate changes and have the necessary flexibility to
align our organization accordingly. Although this is a challenging
process, it also creates opportunities for innovation and forces us
to continuously assess our value proposition.
While the risk-weighted view on capital dominated regulatory
discussions over the last few years, there was a shift in focus in
2014 toward the unweighted view of capital in the form of more
restrictive leverage requirements. We support leverage as an addi-
tional measure in bank regulation and announced, together with
our fourth quarter results, that we intend to further reduce our
leverage exposure and we revised our Group target. However,
we believe that the risk-weighted view should continue to be the
primary capital measure. We believe that if both sets of require-
ments are overly restrictive, it will curtail global economic growth,
limit business opportunities and lead to an assimilation of business
models that would, in turn, undermine systemic stability.
In November 2014, the Financial Stability Board proposed a
new standard for total loss-absorbing capacity (TLAC), under
which global systemically important banks (G-SIBs) would be
required to hold TLAC-eligible instruments up to an equivalent of
20% of risk-weighted assets. The purpose of this new standard is
to ensure that G-SIBs have sufficient loss-absorbing and recapi-
talization capacity available to implement an orderly resolution with
continuity of critical functions and minimal impact on financial sta-
bility. In Switzerland, the group of experts for the further develop-
ment of the financial market strategy, commonly known as the
Brunetti Commission, presented its final report in December 2014,
which also included similar recommendations to enhance the
“Too Big to Fail” regime with mandatory TLAC requirements. We
strongly support this approach, together with the need for inter-
national consistency, to prevent competitive disadvantages arising
from stricter requirements in certain jurisdictions. Switzerland has
already implemented what we believe is a very effective regulatory
framework, under which high-trigger and low-trigger contingent
convertible instruments are recognized as eligible capital. We have
made significant progress toward meeting these requirements and
were one of the first banks to issue such contingent convertible
instruments in the market.
Based on the Brunetti Commission’s final report, the Swiss
Federal Council adopted its evaluation report on Switzerland’s “Too
Big to Fail” regime in mid-February 2015. We are pleased that the
evaluation report acknowledges the effectiveness of the present
“Too Big to Fail” regime and does not view a fundamental realign-
ment as necessary. Subject to market conditions, we plan to issue
senior unsecured debt in 2015, which should qualify for future
capital treatment under the TLAC rules. With this, we are further
developing the possibility to absorb losses at the Group holding
company in order to facilitate a Single Point of Entry bail-in reso-
lution strategy, as set out in FINMA’s bank resolution guidelines.
In 2014, we also made further progress in implementing the
program to evolve our legal entity structure. We expect that
these changes will result in a substantially less complex and more
efficient operating infrastructure for the Group. In Switzerland, we
continue the process of establishing a subsidiary for our Swiss-
booked business, which we anticipate will become operational in
2016, pending regulatory approval. During 2015, we plan to apply
for a Swiss banking license and to incorporate and register the
new legal entity. We expect that the new legal entity structure in
Switzerland will not significantly impact either our current business
offerings or our client servicing model.
Looking at the wealth management industry, one of the most
important developments in 2014 was the endorsement by the G20
states of a global standard for automatic exchange of information
as developed by the Organization for Economic Cooperation and
Development. Switzerland, along with many other jurisdictions, is
committed to this standard. A consistent implementation of the
standard across all major financial centers will be critical to ensure
a level playing field. At Credit Suisse, we support the Swiss gov-
ernment’s commitment to this tax transparency standard and its
active participation in the development of international tax assis-
tance. In Switzerland, efforts to build a tax-compliant and inter-
nationally accepted financial center included the implementation
of the US Foreign Account Tax Compliance Act (FATCA) in July
2014. This law aims to achieve the broadest possible exchange of
information and transparency regarding the offshore accounts of
US taxpayers by essentially requiring all non-US financial institu-
tions worldwide to regularly and automatically notify the US author-
ities about the identity and assets of their US clients. We believe
that the FATCA agreement between Switzerland and the US will
lead to an important facilitation of the tax-related processes and is
of vital importance for the Swiss financial industry.
Another important subject for the banking industry in 2014
was a continued focus on litigation issues. Regulators and
authorities imposed tougher penalties on banks, as evidenced by
record-breaking fines in 2014. A Credit Suisse research report
published in June indicated that litigation risk has become a pri-
mary factor influencing bank share price performance, illustrating
that the financial industry as a whole is expected to continue to
be impacted by litigation matters. For us, the resolution in 2014
of the US cross-border matter brought to a close our most signifi-
cant outstanding litigation. Our settlement in March 2014 with the
Federal Housing Finance Agency also constituted the resolution
of our largest investor lawsuit in the mortgage space. As to the
previously disclosed matters relating to LIBOR and the foreign
exchange markets, to date we have not seen evidence to suggest

7Editorial

of CHF 39 billion as of the end of 2014, up 39% compared to the
end of 2013. We have recently launched our advisory offering,
Credit Suisse Invest, which is being rolled out into selected mar-
kets from the first half of 2015. The focus of the new offering is
on flexibility and transparency. Clients select the investment solu-
tion best suited to their needs and receive a clearly defined range
of services. In addition, they benefit from a very attractive pricing
model, with substantially lower transaction and custody fees. Addi-
tionally, in light of the evolving digital landscape, we are making
progress toward creating a state-of-the-art digital private bank-
ing platform for our clients, allowing them to gain more efficient
access to our global capabilities and enabling them to network
with other clients. We continue to leverage our strong position
in the Swiss market and capitalize on our presence and exper-
tise in the emerging markets, including the Middle East and Asia
Pacific. In Investment Banking, we continued to implement our
client-focused, capital-efficient strategy, with an emphasis on our
market-leading franchises, such as equities, securitized products
and global credit products. We expect that our clear commitment
to the integrated and well-balanced banking model, combined with
the continued wind-down of our non-strategic operations and the
execution of our cost savings programs, will allow us to deliver a
good performance to the benefit of our stakeholders.
Announcement regarding CEO change
Given the progress made and good momentum across our busi-
nesses, we decided that now is the appropriate time for CEO suc-
cession. On March 10, 2015, we announced that the Board of
Directors has appointed Tidjane Thiam as the new CEO of Credit
Suisse Group, effective at the end of June 2015. Tidjane Thiam,
who currently serves as Group Chief Executive of Prudential plc,
is one of the most distinguished personalities in the financial ser-
vices industry with profound experience in asset management and
wealth management. In the meantime, we and our leadership team
are focused on a flawless transition.
Our performance in 2014
Our full-year 2014 results highlight the stability of our franchise.
Despite the impact of the final settlement of all outstanding US
cross-border matters in May 2014, we reported Core pre-tax
income of CHF 3,232 million and a return on equity of 4% for the
full year. Net income attributable to shareholders was CHF 1,875
million for 2014. As of the year end, our look-through CET1 ratio
stood at 10.1%, exceeding our 10% year-end target. The success-
ful execution of the capital actions that we announced in May 2014
helped us to offset the impact of the US cross-border settlement on
our capital position.
Since the end of 2013, we have separately disclosed our stra-
tegic and non-strategic results, in addition to our reported results.
Our strategic results encompass the businesses that we plan to
that we are likely to have any material exposure in connection with
these issues. We are, nevertheless, still in the process of resolv-
ing certain other litigation issues, predominantly mortgage-related
matters dating back to before the financial crisis. In view of devel-
opments in the industry-wide litigation and investigations in the US
relating to mortgages, Credit Suisse announced in February 2015
that it had increased its mortgage-related litigation provisions.
While it is not feasible to entirely rule out misconduct, we
have a very strict compliance and control culture and a zero tol-
erance approach to unethical behavior. Recognizing the critical
role of employees in helping to preserve financial integrity, we
demand the highest standards of personal accountability and ethi-
cal conduct from each member of our global workforce. In 2014,
we introduced a set of Business Conduct Behaviors to guide our
employees in their daily activities and to help reduce the potential
for operational or conduct losses resulting from breaches of ethical
standards or the failure to identify, escalate and resolve problems
at an early stage. In addition, all employees are fully committed to
Credit Suisse’s Code of Conduct and take part in targeted man-
datory training courses that include developments in the finance
industry such as anti-corruption and risk management measures.
Strategy and growth opportunities
The ongoing changes in the financial services industry, as well as the
evolving economic and regulatory environment, are forcing banks to
constantly adapt their business models and to examine and analyze
business investment and expansion opportunities going forward. In
addition, recent analyst and media reports have questioned the sus-
tainability of the universal banking model, which combines wealth
management and investment banking services. Credit Suisse has
had an integrated bank model in place since 2006, and our “One
Bank” approach represents an integral part of our business model
and strategy. We are convinced that the collaboration between our
two divisions, Private Banking & Wealth Management and Invest-
ment Banking, is a key differentiator for us. It enables us to offer
clients decades of experience in wealth management, combined
with global capital markets access and expertise. In 2014, the
landmark initial public offering of Alibaba, in which we served as
a lead underwriter, as well as the acquisition of the Forbes Media
Group by an ultra-high-net-worth investor, serve as recent and
prominent examples of the success of our integrated approach and
collaboration to the benefit of our clients. In 2014, we generated
CHF 4.3 billion of collaboration revenues from the integrated bank.
During the year, we made further progress toward our goal of
achieving a more balanced allocation of capital between Private
Banking & Wealth Management and Investment Banking. We con-
tinued to drive our growth initiatives in Private Banking & Wealth
Management in order to grow top-line revenue and mitigate margin
pressure. Our lending program for ultra-high-net-worth individuals,
for example, has grown across all regions, reaching a loan volume

8
focus on going forward, while our non-strategic results include
operations that we intend to wind down or exit. We think it is help-
ful for our investors to know how our businesses perform when
excluding the drag from the non-strategic results. Looking at our
strategic results for the full year 2014, Core pre-tax income was
CHF 6,790 million and net income attributable to shareholders
was CHF 4,962 million. The return on equity for our strategic busi-
nesses for 2014 was 12%, compared to our through-the-cycle
Group target of 15%.
In Private Banking & Wealth Management, we reported strategic
pre-tax income of CHF 3,726 million, up 3% compared to 2013,
due to a lower cost base as we continue to focus on delivering
significant efficiency improvements. The cost/income ratio for our
strategic results improved to 68% for 2014, compared to 70% in
2013. In terms of capital, risk weighted assets and leverage expo-
sure in Private Banking & Wealth Management strategic results
increased by CHF 13 billion and CHF 43 billion, respectively.
The increases were driven by foreign exchange and methodology
impacts as well as loan growth, which is consistent with our strategy
to increase overall capital allocation to this division. For the full year
2014, we generated net new assets of CHF 27.5 billion in Wealth
Management Clients, with a growth rate of 3.5%. We saw a signif-
icant contribution of net new assets from the ultra-high-net-worth
individuals segment of CHF 20.9 billion, with a growth rate of 6%.
In terms of regions, there was continued robust momentum in Asia
Pacific, with net new asset growth of 15% for the full year, while
Western European cross-border outflows were CHF 11.4 billion.
In Investment Banking, pre-tax income for our strategic busi-
nesses was CHF 3,744 million, including the impact of funding
valuation adjustments (FVA), which we introduced in the fourth
quarter, in line with the industry. Strategic net revenues were sta-
ble compared to 2013, highlighting the consistency of our diversi-
fied franchise and driving a return on regulatory capital of 17%.
Operating expenses for the strategic businesses were stable, as
an increase in deferred and variable compensation expenses offset
our continued progress in infrastructure initiatives and other oper-
ating expenses.
During the year, we also continued to make progress in the
wind-down of our non-strategic units in both divisions, reducing
risk-weighted assets by 35% and leverage exposure by CHF 25
billion compared to the end of 2013.
Consistent with 2013, the Board of Directors will propose a
cash distribution of CHF 0.70 per share for the financial year 2014
out of reserves from capital contributions to the Annual General
Meeting. The Board of Directors will also propose an optional scrip
alternative to our shareholders that would allow them to elect to
receive the distribution in the form of new shares, subject to any
legal restrictions applicable in their home jurisdiction. We remain
committed to returning half of our earnings to shareholders, pro-
vided our look-through CET1 capital ratio continues to exceed
10% and we meet our leverage ratio targets.
During 2014, we made considerable progress in developing our
businesses and in innovating new products and services for our
clients, as well as better aligning our resources and reducing our
operating expenses. Furthermore, thanks to the dedication and
professionalism of our employees, we were able to mitigate the
impact of the US cross-border settlement on our business, as
well as resolve other litigation issues. We would like to express
our sincere gratitude to our clients, our shareholders and our
employees for all of their support during the year.
Best regards,
Urs Rohner Brady W. Dougan
Chairman of the Chief Executive Officer
Board of Directors
March 2015
As of January 1, 2013, Basel III was implemented in Switzerland along with the Swiss “Too Big to Fail” legislation and regulations thereunder. The related disclosures are in
accordance with Credit Suisse’s current interpretation of such requirements, including relevant assumptions. Changes in the interpretation of these requirements in Switzerland
or in any of Credit Suisse’s assumptions or estimates could result in different numbers from those shown herein.
Unless otherwise noted, leverage ratio, leverage exposure and total capital amounts included herein are based on the current FINMA framework. The Swiss leverage ratio is
calculated as Swiss total eligible capital, divided by a three-month average leverage exposure, which consists of balance sheet assets, off-balance sheet exposures, which
consist of guarantees and commitments, and regulatory adjustments, which include cash collateral netting reversals and derivative add-ons.
BIS leverage amounts are calculated based on our interpretation of, and assumptions and estimates related to, the BIS requirements as implemented by FINMA that are effective
for the first quarter of 2015, and the application of those requirements on our fourth quarter of 2014 results. Changes in these requirements or any of our interpretations,
assumptions or estimates would result in different numbers from those shown here. BIS leverage exposure target assumes foreign exchange rates of USD/CHF and EUR/CHF
as of January 30, 2015.
Return on equity for strategic results is calculated by dividing annualized strategic net income by average strategic shareholders’ equity (derived by deducting 10% of non-
strategic risk-weighted assets from reported shareholders’ equity). Return on regulatory capital is calculated using income after tax and capital allocated based on the average
of 10% of average risk-weighted assets and 2.4% of average leverage exposure.
Strategic net new assets are determined based on the assumption that assets managed across businesses relate to strategic businesses only.
Refer to “Results overview” in II – Operating and financial review – Core Results further information on Core Results.

9Editorial

Thank you, Brady W. Dougan
As communicated in early March, Brady W. Dougan will step down from his role
as CEO of Credit Suisse at the end of June 2015. After an exceptional career of
25 years with Credit Suisse, including eight years as its CEO, Brady W. Dougan, in
close consultation with the Board of Directors, has decided to step down. Brady
significantly and successfully shaped Credit Suisse. Despite a complex environment
and considerable headwinds in the global financial services industry, he has kept
our bank on track and mastered even the most difficult of challenges. The Board of
Directors, the Executive Board and our employees are extremely grateful to Brady
for his tremendous commitment and unparalleled contribution over the years!
Welcome, Tidjane Thiam
After an extensive and thorough evaluation process, which included internal and
external candidates, the Board of Directors has appointed Tidjane Thiam as the new
CEO of Credit Suisse. Tidjane has an impressive track record in the global financial
services industry, with leading roles at Aviva and as Group Chief Executive of
Prudential plc. His in-depth knowledge, vast experience and remarkable personality
make Tidjane an ideal choice to achieve sustained future success for Credit Suisse.
We welcome Tidjane to Credit Suisse and look forward to working with him!
Urs Rohner
Chairman of the Board of Directors
March 2015

10
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11
Information on
the company
12 Credit Suisse at a glance
13 Strategy
16 Our businesses
24 Organizational and regional
structure
26 Regulation and supervision
39 Risk factors
I

12
Credit Suisse at a glance
Credit Suisse
Private Banking &
Wealth Management
Investment
Banking
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, ultra-high-net-worth and high-net-worth individuals worldwide, as well as affluent
and retail clients in Switzerland. Founded in 1856, today we have a global reach with
operations in over 50 countries and 45,800 employees from over 150 different nations.
Our broad footprint helps us to generate a geographically balanced stream of revenues and
net new assets and allows us to capture growth opportunities around the world. We serve
our clients through our two divisions, which cooperate closely to provide holistic financial
solutions, including innovative products and specially tailored advice.
Private Banking & Wealth Management offers comprehensive advice and a wide range
of financial solutions to private, corporate and institutional clients. The Private Banking
& Wealth Management division comprises the Wealth Management Clients, Corporate &
Institutional Clients and Asset Management businesses. Our Wealth Management Clients
business serves ultra-high-net-worth and high-net-worth individuals around the globe,
as well as affluent and retail clients in Switzerland. Our Corporate & Institutional Clients
business serves the needs of corporations and institutional clients, mainly in Switzerland.
Asset Management offers a wide range of investment products and solutions across diverse
asset classes and investment styles, serving governments, institutions, corporations and
individuals worldwide.
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 pension funds and 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 Private Banking &
Wealth Management to provide clients with customized financial solutions.

13Information on the company
Strategy
Strategy
An integrated global bank
We offer our clients in Switzerland and around the world a broad
range of traditional and customized banking services and products.
We believe that our ability to serve clients globally with solutions
tailored to their needs gives us a strong advantage in today’s rap-
idly changing and highly competitive marketplace.
We operate as an integrated bank, combining our strengths
and expertise in our two global divisions, Private Banking & Wealth
Management and Investment Banking. Our divisions are supported
by our Shared Services functions, which provide corporate ser-
vices and business solutions while ensuring a strong compliance
culture. Our global structure comprises four regions: Switzerland;
Europe, Middle East and Africa (EMEA); Americas; and Asia
Pacific. With our local presence and global approach, we are well
positioned to respond to changing client needs and our operating
environment.
Progress on our strategy
In 2014, we continued to make significant progress in execut-
ing our client-focused, capital-efficient strategy in the context of
an evolving regulatory environment. We are progressing towards
achieving specific goals to reduce our cost base and strengthen
our capital position, and we have operated under the qBasel III
capital framework since January 2013. We have continued to
optimize our business footprint by shifting resources to focus on
growth in high-returning businesses while moving towards a more
balanced capital allocation between our Investment Banking and
Private Banking & Wealth Management divisions. As a result of
this progress, we believe that today Credit Suisse is better posi-
tioned to perform in a challenging market environment and com-
pete in our chosen businesses and markets around the world.
Private Banking & Wealth Management
Our Private Banking & Wealth Management division is comprised
of our Wealth Management Clients, Corporate & Institutional Cli-
ents and Asset Management businesses. In our Wealth Manage-
ment Clients business, we continued to make progress towards
our goal of becoming the leading private bank for qultra-high-net-
worth individual (UHNWI) and qhigh-net-worth individual (HNWI)
clients globally while efficiently growing our affluent and retail busi-
ness in our Swiss home market. We further optimized our market
footprint by making focused investments in fast-growing emerging
markets, capturing growth in select profitable onshore markets
and exiting smaller markets. In our Corporate & Institutional Clients
business, we maintained and selectively improved our leading posi-
tion in Switzerland within our aspiration to position ourselves as the
“Bank for Entrepreneurs” for our corporate and institutional clients.
Internationally, we reinforced our growth strategy by strengthening
our presence in the Asia Pacific region, while reducing non-core
and capital-intensive business activities, in line with the Group’s
objective to further improve capital ratios while investing in profit-
able growth and increasing efficiency. In our Asset Management
business, we made significant progress in our strategy and refo-
cused the business around a boutique model.
Investment Banking
In the Investment Banking division, we remain committed to offer-
ing our key clients a spectrum of equities, fixed income and invest-
ment banking advisory products and services. We have made fur-
ther progress on our key priorities, including: allocating resources
to our market-leading and capital-efficient businesses where we
expect to generate strong returns on regulatory capital; increasing
profitability and reducing capital usage in our repositioned macro
business; optimizing delivery and product set across Investment
Banking to drive growth in Private Banking & Wealth Management;
offsetting higher regulatory costs with continued cost efficiencies;
and winding down our non-strategic unit’s Basel III qrisk-weighted
assets and leverage exposure to reduce the negative impact on
both pre-tax income and return on regulatory capital.
Non-strategic units
In the fourth quarter of 2013, we created non-strategic units within
our Private Banking & Wealth Management and Investment Bank-
ing divisions and separated non-strategic items in the Corporate
Center to further accelerate our reduction of capital and costs
associated with non-strategic activities and positions and to shift
resources to focus on our strategic businesses and growth initia-
tives. The non-strategic units are retained within the divisions to
benefit from senior management’s expertise and focus. The non-
strategic units have separate management within each division and
a clear governance structure through the establishment of a Non-
Strategic Oversight Board.
In connection with these actions, we expect to reduce non-
strategic Basel III risk-weighted assets from CHF 16 billion as of
the end of 2014 to CHF 10 billion by the end of 2015, on a foreign
exchange neutral basis. We also expect to reduce non-strategic
Swiss leverage exposure from CHF 75 billion as of the end of
2014 to CHF 26 billion by the end of 2015, on a foreign exchange
neutral basis.
u Refer to “Format of presentation and changes in reporting” in II – Operating
and financial review – Credit Suisse – Information and developments for further
information on non-strategic units in Private Banking & Wealth Management and
Investment Banking.

14
Capital and leverage ratio
In 2014, we continued to strengthen our capital position in light of
the evolving regulatory environment. We issued Basel III-compliant
tier 1 capital notes. In addition, we have further optimized our bal-
ance sheet and leverage exposure, leading to an improved Swiss
look-through leverage ratio of 3.9% as of year-end 2014 com-
pared to the current 4.09% requirement for 2019. We continue
to deploy capital in a disciplined manner based on our economic
capital model, assessing our aggregated risk taking in relation to
our clients’ needs and our financial resources. The look-through
common equity tier 1 (CET1) ratio was 10.1% as of the end of
2014, exceeding the 10% year-end target.
u Refer to “Capital management” in III – Treasury, Risk, Balance sheet and Off-
balance sheet for further information on capital and leverage ratio trends.
Group cost efficiencies
We continued to adapt our client-focused, capital-efficient strat-
egy to optimize our use of capital and improve our cost structure.
We target cost savings of more than CHF 4.5 billion by the end of
2015, of which about CHF 3.5 billion of adjusted annualized sav-
ings were delivered as of the end of 2014. This target is measured
against our annualized six month 2011 expense run rate measured
at constant foreign exchange rates and adjusted to exclude busi-
ness realignment and other significant non-operating expenses
and variable compensation expenses.
Furthermore, in February 2015, we announced additional
incremental cost savings of CHF 200 million expected by the end
of 2017.
We continue to adjust and optimize our footprint across busi-
nesses and regions and adapt Shared Services to changing busi-
ness priorities.
u Refer to “Cost savings and strategy implementation” in II – Operating and
financial review – Core Results – Information and developments for further
information.
Group priorities
We expect our client-focused, capital-efficient strategy will enable
us to benefit from a more constructive market environment while
limiting our risk exposure in down markets. We have greater clarity
on our future regulatory environment, and we are well advanced on
implementation.
We target an after-tax return on equity of 15% across market
cycles. To track our progress and benchmark our performance, we
have defined a set of key performance indicators for growth, effi-
ciency and performance and capital to be achieved across market
cycles.
u Refer to “Key performance indicators” in II – Operating and financial review –
Core Results – Information and developments for further information.
Building on the momentum we have established, we aim to further
focus on our most profitable client businesses, gain market share,
strengthen our geographic footprint and drive ongoing efficiency
improvements. To achieve our goals, we continue to focus on the
following six pillars of our strategy.
Client focus
We put our clients’ needs first. We aspire to be a consistent, reli-
able, flexible and long-term partner focused on clients with com-
plex and multi-product needs, such as qUHNWI, large and mid-
sized companies, entrepreneurs, institutional clients, hedge funds
and q affluent clients in Switzerland. By listening attentively to
their needs and offering superior solutions, we empower our cli-
ents to make better financial decisions. Against the backdrop of
significant changes within our industry, we strive to consistently
enable our clients to realize their goals and thrive. We continue to
strengthen the coverage of our key clients by dedicated teams of
senior executives who can deliver our integrated business model.
We have a strong capital position and high levels of client satisfac-
tion and brand recognition, and our strong client momentum is well
recognized.
Employees
We continue our efforts to attract, develop and retain top talent in
order to deliver outstanding financial products and services to our
clients. Our candidates go through a rigorous interview process,
where we not only look for technical proficiency and intellect, but
for people who can thrive in and contribute to our culture. We
review our talent and identify the optimal development opportuni-
ties based on individual and organizational needs. We strongly pro-
mote cross-divisional and cross-regional development, as well as
lateral recruiting and mobility. Valuing different perspectives, creat-
ing an inclusive environment and showing cross-cultural sensitivity
are key to Credit Suisse’s workplace culture. We train our leaders,
specialists and client advisors in a wide range of subjects. We take
a prudent and constructive approach to compensation, designed to
reflect the performance of individuals and the firm and closely align
the interests of employees with those of shareholders.
Capital and risk management
We believe prudent risk taking aligned with our strategic priori-
ties is fundamental to our business, and we maintain a conserva-
tive framework to manage liquidity and capital. We continue to
strengthen our capital base and plan to issue additional contin-
gent capital instruments while decreasing qrisk-weighted assets
and leverage exposure. Our goal is to reduce Group risk-weighted
assets to a range of CHF 250–260 billion by the end of 2016,
on a foreign exchange adjusted basis. The Group has revised its
BIS leverage exposure target to CHF 930–950 billion by the end
of 2015 from the previously reported Swiss leverage exposure
target of approximately CHF 1,050 billion, on a foreign exchange
adjusted basis. We are targeting a look-through Swiss leverage
ratio of 4.5% by the end of 2015. We are targeting a look-through
BIS tier 1 leverage ratio of approximately 4.0% by the end of
2015, of which the CET1 component is approximately 3.0%.

Strategy
Efficiency
We continue to strive for top-quartile efficiency levels, while being
careful not to compromise on growth or reputation. In line with the
evolution of our strategy, implemented efficiency measures are
generating significant cost savings while helping to build an effi-
ciency culture. We have transferred additional services to our Cen-
ters of Excellence (CoE), which now account for more than 17% of
our work force. We have established initiatives to further leverage
the service capabilities and talent at our CoE.
Our cost/income targets are 65% in Private Banking & Wealth
Management and 70% in Investment Banking across market
cycles.
Collaboration
We are convinced that close collaboration between our divisions
and regions is essential to delivering comprehensive solutions to
the complex financial needs of our clients. We have established
a dedicated governance structure in order to drive, measure and
manage collaboration among our businesses. We target collabo-
ration revenues of 18% to 20% of net revenues. In 2014, col-
laboration revenues represented 17% of net revenues. Since the
inception of our collaboration program in 2006, we have built a
strong track record of delivering customized value propositions. We
believe this is a significant differentiator for Credit Suisse. We have
observed continued momentum in collaboration initiatives, includ-
ing tailored solutions for entrepreneurs and q HNWI clients by
Investment Banking and managed investment products developed
by Private Banking & Wealth Management. As we also benefit
from our programs for cross-divisional management development
and lateral recruiting, collaboration revenues, including cross-sell-
ing and client referrals, have proven to be a resilient source of both
revenues and assets under management.
Corporate responsibility
A responsible approach to business is a key factor in determining
our long-term success. For Credit Suisse, corporate responsibil-
ity is about creating sustainable value for clients, shareholders,
employees and other stakeholders. We strive to assume these
responsibilities and to comply with the ethical values and profes-
sional standards set out in our Code of Conduct in every aspect
of our work, including our relationship with stakeholders. Our
approach is based on a broad understanding of our duties as a
financial services provider and employer and an integral part of the
economy and society. This approach also reflects our commitment
to protecting the environment. To ensure that we supply the full
breadth of information required by our stakeholders, we publish a
Corporate Responsibility Report.
Code of Conduct
At Credit Suisse, we are convinced that our responsible approach
to business is a decisive factor determining our long-term success.
We therefore expect all our employees and members of the Board
of Directors to observe the professional standards and ethical val-
ues set out in our Code of Conduct, including our commitment to
complying with all applicable laws, regulations and policies in order
to safeguard our reputation for integrity, fair dealing and measured
risk-taking.
u Refer to “www.credit-suisse.com/code” for our Code of Conduct.
Industry trends and competition
Financial services firms faced a mixed operating environment in
2014. From a cyclical perspective, low interest rates and low lev-
els of volatility supported certain investment banking activities,
particularly origination and mergers and acquisitions (M&A), and
helped drive solid asset and profit growth in the asset manage-
ment industry. At the same time, these factors were detrimental
for certain other investment banking activities (e.g., equity sales
and trading) and parts of the wealth management industry (e.g.,
net interest income).
From a structural perspective, financial institutions continued
to face significant pressure to adapt to new regulatory require-
ments and evolving client needs. In particular, private banks
faced increased regulation of investment advisory and cross-
border banking services, while investment banks were subject to
heightened regulatory emphasis on leverage exposure. Partly in
response to these pressures, global banks continued to take sig-
nificant steps to restructure businesses and decrease costs while
also taking measures to increase capital, leverage and liquidity
ratios. In Switzerland, developments in the cross-border wealth
management business continued to be driven by a focus on finding
a political basis for operating this business in the future and ongo-
ing efforts to resolve legacy cross-border matters, particularly with
European countries and the US.
u Refer to “Our businesses – Private Banking & Wealth Management” and “Our
businesses – Investment Banking” for further information.

16
Our businesses
Business profile
Within the Private Banking & Wealth Management division, we
offer comprehensive advice and a broad range of financial solu-
tions to private, corporate and institutional clients. The strategic
businesses of Private Banking & Wealth Management comprise
Wealth Management Clients, Corporate & Institutional Clients and
Asset Management.
Our Wealth Management Clients business is one of the
largest in the international wealth management industry, serving
over two million clients, including qUHNWI and qHNWI clients
around the globe in addition to qaffluent and retail clients in Swit-
zerland. We offer our clients a distinct value proposition, combining
global reach with a structured advisory process and access to a
broad range of comprehensive products and services. Our global
network includes 3,730 relationship managers in 41 countries with
close to 300 offices and 21 qbooking centers. As of the end of
2014, our Wealth Management Clients business had assets under
management of CHF 874.5 billion.
Our Corporate & Institutional Clients business offers
expert advice and high-quality services to a wide range of clients,
serving the needs of over 100,000 corporations and institutions,
mainly in Switzerland, including large corporate clients, small and
medium size enterprises (SME), institutional clients, financial insti-
tutions, shipping companies and commodity traders. Around 1,800
employees, including 530 relationship managers, serve our clients
out of 52 locations. While the Swiss home market remains our
main focus, we also continue to build out our capabilities in inter-
national growth markets with dedicated teams in Luxembourg,
Singapore and Hong Kong. As of the end of 2014, our Corporate
& Institutional Clients business reported CHF 376.2 billion of client
assets and CHF 68.6 billion of net loans.
Our Asset Management business offers investment solutions
and services globally to a wide range of clients, including pension
funds, governments, foundations and endowments, corporations
and individuals. Our capabilities span across a diversified range
of asset classes with a focus on alternative, traditional and multi-
asset portfolios, in many areas with a broad offering for emerging
markets-related investment opportunities. Our Asset Management
business had CHF 388.5 billion of assets under management as
of the end of 2014.
We made further progress in winding down positions in our
non-strategic unit, which was established in 2013. This includes
positions relating to the restructuring of the former Asset Manage-
ment division, run-off operations relating to our small markets exit
initiative and certain legacy cross-border related run-off opera-
tions, litigation costs, primarily related to the final settlement of all
outstanding US cross-border matters, other smaller non-strategic
positions formerly in our Corporate & Institutional Clients business
and the run-off and active reduction of selected products. Further-
more, it comprises certain remaining operations that we continue
to wind-down relating to our domestic private banking business
booked in Germany, which we sold in 2014. The non-strategic unit
allows management to focus on ongoing businesses and growth
initiatives and further accelerates the reduction of capital and
costs currently tied up in non-strategic businesses.
Key data – Private Banking & Wealth Management

in / end of

2014
2013
2012
Key data

Net revenues (CHF million)
12,637
13,442
13,474
Income before taxes (CHF million)
2,088
3,240
3,775
Assets under management (CHF billion)
1,377.3
1,282.4
1,250.8
Number of employees
26,100
26,000
27,300
We believe the wealth management industry continues to have
positive growth prospects. Assets of UHNWI and HNWI glob-
ally are projected to grow approximately 8% annually from 2013
through 2018, which compares to a similar 8% annual growth rate
experienced from 2008 through 2013. Wealth creation continues
to be at higher growth rates in emerging markets compared to
mature markets, especially in Asia Pacific, fueled by entrepreneur-
ial activity and comparatively strong economic development. With
around 70% of the world’s global wealth still located in the US,
Western Europe and Japan, the mature markets continue to be of
crucial importance for global wealth managers.
Structurally, the industry continues to undergo significant
change. Regulatory requirements for investment advisory services
continue to increase, including in the areas of suitability and appro-
priateness of advice, client information and documentation. Fur-
ther, new and proposed laws and international treaties are leading
to increased regulation of cross-border banking. We believe Credit
Suisse is well advanced in adapting to this new environment as we
have and are continuing to dedicate significant resources to ensure
our business is compliant with regulatory standards.
We believe the market for corporate and institutional
banking services continues to offer attractive business opportu-
nities in Switzerland and internationally. We are a leading bank in
providing banking services to corporate and institutional clients in
Switzerland, utilizing Credit Suisse’s broad capabilities across its
businesses, including the Investment Banking division.
The asset management industry continued to experience
solid growth in asset levels and profits globally in 2014, partly
due to the strong performance of financial markets worldwide.
This was particularly the case in most developed markets, while
some of the important emerging markets experienced a slow-
down. Within the asset management industry, preferred investor
allocations have shifted from traditional core asset management
products to passive strategies, multi-asset class strategies and

Our businesses
alternative investments. Within alternative investments, global
assets have reached record highs with particularly strong growth
in hedge funds, real assets, alternative strategies for retail inves-
tors and liquid registered products. Strong private equity fundrais-
ing continued in 2014, with the largest managers receiving the
majority of new investor commitments. The regulatory environment
continued to evolve in 2014 and is expected to continue to trend
towards simpler, more regulated fund structures in conjunction
with investors seeking better transparency and risk management.
For the wealth and asset management industry in general,
most firms continue to face similar challenges in terms of reduced
fee-based margins, a low interest environment, expense pressures
and the need to upgrade information technology platforms while
complying with new regulatory demands and adjusting the prod-
uct offering in response to changes in client behaviors. Compe-
tition and cost pressure in the banking industry remain intense
and the industry is affected by new capital and leverage require-
ments, forcing many competitors to continue to review their busi-
ness strategies and operating models. Attracting and retaining the
best talent continues to be a key factor for success. As a result of
these structural industry trends, we expect industry consolidation
and restructuring to continue.
We believe Switzerland is well positioned to continue as an
attractive financial center in this changing marketplace, offering
clients a politically stable and economically diversified investment
environment combined with a long-standing heritage in wealth and
asset management services. Within the Swiss marketplace, M&A
activity began to accelerate in 2014, a trend that we expect to
continue as certain Switzerland-based private banks may find it
challenging to maintain sufficient profitability. In addition, we esti-
mate that small and medium-sized banks experienced a decline in
assets under management in 2013 and 2014, while larger banks
had positive net inflows and grew their market share.
Strategy
Within the Private Banking & Wealth Management division, we
operate along the lines of our strategic businesses (i) Wealth Man-
agement Clients, (ii) Corporate & Institutional Clients and (iii) Asset
Management. As a leading integrated banking institution in Swit-
zerland we serve our wealth management, corporate & institutional
clients globally as well as our retail clients in Switzerland. With the
integration of the formerly separate Asset Management business
into our division we are able to implement a more efficient, cost-
effective operating model that better serves our clients. In particu-
lar, our investment views have been further aligned and tailored
locally, leading to a simpler product shelf and streamlined delivery.
In addition, we have regionalized and focused our product offer-
ing to shorten our response time to product needs and improve
time-to-market.
We expect to make additional progress by continuing our long-
term strategy focused on:
p Advice at the core
p Targeted global growth
p Productivity management
p Regulatory compliance
p Integrated bank
p Best people
Advice at the core: We strive for our clients to benefit from our
value-adding services in terms of advice and performance. Our
advisory value proposition is a vital part of our wealth manage-
ment strategy to provide our clients with specific advice around
their asset allocation and asset-liability management needs. Our
globally consistent advisory process, which is at the center of
our wealth management advice, allows us to define an invest-
ment strategy in line with each individual client’s risk profile and
to deliver tailor-made and comprehensive financial solutions to our
clients. To ensure the highest standards in our product offerings,
our selection of internal and third-party solutions is based on com-
prehensive due diligence with regard to the suitability of products
and advice. As we look ahead, our priority is to ensure that we
address the evolving needs of our clients. In the Swiss home and
select offshore markets, we introduced in late 2014 Credit Suisse
Invest, a new range of advisory services, through which we offer
investment solutions based on client needs and their preference of
frequency of interaction and type of advice. Credit Suisse Invest
is based on a competitive and transparent pricing model, with
fees for the advisory services varying depending on the solution
selected. It also includes lower safe custody fees and a significant
reduction in transaction commissions.
Targeted global growth: We saw a further expansion of our
footprint in emerging markets in the last year with strong net new
asset growth of 9%. To further capture the superior growth oppor-
tunities of these regions, we are planning to realign the expense
base away from non-strategic and mature markets towards faster
growing emerging markets. Our Swiss home market remains a key
area of focus where we plan to leverage our strong market posi-
tion and cross-segment collaboration to further increase scale. In
mature markets outside Switzerland, we make selective invest-
ments to strengthen our profitable onshore franchises.
Productivity management: Key to achieving our produc-
tivity enhancements are the efficiency management programs
that we announced and began implementing in November 2011
and further expanded with the creation of the combined division
in November 2012. We are targeting CHF 950 million of direct
expense savings as part of Credit Suisse’s firm-wide cost sav-
ings target of CHF 4.5 billion by the end of 2015. The savings
are mainly expected to come from the wind-down of non-strategic
operations, the rationalization and further offshoring of support
functions, increasing automation and platform consolidation.
Regulatory compliance: We are dedicated to strict compli-
ance with national and international regulations and we proac-
tively develop and implement new business standards to address
changes in the regulatory environment.
Integrated bank: The value proposition of our integrated bank
remains a key strength in our client offerings. Close collaboration
with the Investment Banking division enables us to offer additional
customized and innovative solutions to our clients, especially to

18
UHNWI clients, our fastest growing client segment. We strive
to further strengthen our market share by continuing to build out
our specific UHNWI product offerings, including the expansion of
secured lending.
Best people: Attracting, developing and retaining the indus-
try’s top talent continues to be a vital cornerstone of our strategy.
Therefore, we continued to hire experienced senior relationship
managers, who accounted for 61% of our relationship manager
hires in 2014. We also continued and added to our extensive train-
ing and certification programs through which we enhance our
existing talent pool.
Wealth Management Clients
In 2014, we continued to make significant progress towards our
goal of becoming the leading private bank for UHNWI and HNWI
clients globally while efficiently growing our affluent and retail busi-
ness in our Swiss home market.
In our home market in Switzerland, our clients range from the
retail segment up to UHNWI. They benefit from a broad service
offering and widespread local presence. Our nation-wide branch
network with over 200 locations allows us to stay in close contact
with our clients and to identify new business opportunities across
client segments. To enhance efficiencies and improve productivity
we implemented two focused business areas: First, a dedicated
coverage team for UHNWI and External Asset Managers to meet
the complex and demanding needs of these clients, which often
resemble those of institutional clients. Second, an effective cover-
age organization for our clients in Switzerland, ensuring high client
proximity and a seamless service offering for our clients ranging
from the retail and affluent to the HNWI segment.
In emerging markets we continue to make focused invest-
ments to capture the attractive growth prospects in these regions.
Our clients benefit from our broad global footprint and the ser-
vices we provide in collaboration with Credit Suisse’s established
global Investment Banking presence. To advance our business in
these markets and facilitate client connectivity, we have a firm-
wide emerging markets council, comprised of 25 country heads
and senior business heads from both divisions across the firm. This
collaborative partnership leverages our global platform, ensuring
a constant strategic dialogue with clients to generate customized
investment and business opportunities. The council regularly hosts
client events and distributes thought leadership ideas reflecting
individual views on markets and economies. The importance of
emerging markets for our Wealth Management Clients business
has continued to increase, with assets from emerging markets
accounting for 39% of our assets under management as of year-
end 2014 (compared to 35% at the end of 2011). We are further
increasing depth in key markets like Brazil, China, Indonesia and
the Middle East, and continue to enhance our Singapore and Hong
Kong on- and offshore offerings. We expect to further accelerate
our emerging markets expansion by extending our secured lend-
ing offerings and increasing the hiring of experienced relationship
managers in these regions. Our achievements in emerging markets
are being recognized with private banking and wealth management
awards, including by the Professional Wealth Management Maga-
zine/The Banker, for having the “Best Private Bank in Russia in
2014” as well as the “Best Private Bank in the Middle East in
2014”. In addition, Credit Suisse was awarded “Best Private Bank
Taiwan (Foreign)”, “Best Family Office Offering” and “Best UHNW
Offering” at the 6th Private Banker International Greater China
Awards held in May 2014 in Hong Kong.
Against the backdrop of an evolving business and regulatory
environment in mature markets in Western Europe, North Amer-
ica, Japan and Australia, we continue to transform our businesses
to accelerate growth and enhance efficiency. In Western Europe,
we completed the sale of our domestic private banking business
booked in Germany and our local affluent and upper affluent busi-
ness in Italy. We remain fully committed to serving German and
Italian wealth management clients. In the case of Germany we will
do so on a cross-border basis, leveraging our comprehensive inter-
national platforms, particularly in Switzerland and Luxembourg. In
Italy, we continue to invest in the onshore platform that focuses
on the upper HNWI and UHNWI client segments. We also plan to
continue to grow select profitable onshore markets as evidenced
by the launch of our advisory branch in Portugal and our acquisi-
tion of Morgan Stanley’s private wealth management businesses
in EMEA, excluding Switzerland. In the United States, we con-
tinue to grow and invest in our domestic private banking business,
which continued to improve its financial performance in 2014,
while increasing the cross-divisional collaboration with our invest-
ment banking franchise. Enhancements in our product offerings,
such as residential mortgages and non-standard collateral lending,
and investment in our platform, such as enhanced digital capabili-
ties and a streamlined client onboarding process, demonstrate our
commitment to serve select clients in the world’s largest wealth
management market. The launch in 2014 of our onshore private
wealth management business in Canada allows us to leverage our
investment banking business in this mature market and further
expands our North American footprint.
In all regions, the UHNWI client segment is an impor-
tant growth driver for our business. By combining individual and
comprehensive advice with dedicated investment ideas we con-
tinue to focus on this fast-growing client segment. Our offer is
complemented by customized and innovative asset management
and investment banking solutions based on our integrated bank
approach. We continue to successfully execute our growth strat-
egy, as UHNWI clients represented 48% of our assets under
management at year-end 2014, compared to 37% at the end of
2011. We plan to continue to build out our specific product capa-
bilities for UHNWI clients to further capture the segment’s growth
potential, including the expansion of our secured lending offering.
To further reduce operational complexity and respond to
increasing regulatory scrutiny, primarily in our cross-border busi-
ness, we decided to fully exit from serving clients domiciled in
over 80 small markets, primarily in Eastern EMEA. Similarly, we
decided to discontinue servicing the affluent client segment in over
60 additional mainly small markets. These decisions were largely
implemented throughout 2014 and had a minor impact on our

Our businesses
assets under management while creating efficiency and productiv-
ity gains by ensuring that our attention and resources are focused
on targeted markets and client segments.
Corporate & Institutional Clients
In 2014, we successfully leveraged our strong market position in
Switzerland and intensified cross-segment collaboration and refer-
rals and successfully maintained the productivity in our business,
despite the pressure on net interest income reflecting the ongoing
low interest rate environment.
We maintained and selectively improved our leading position in
Switzerland within our aspiration to position ourselves as the “Bank
for Entrepreneurs” for our corporate and institutional clients. We
significantly increased commission and fee revenues across key
businesses, supported by comprehensive sales excellence training
to our employees. Internationally, we reinforced our growth strat-
egy by strengthening our presence in the Asia Pacific region, while
reducing non-core and capital-intensive business activities, in line
with the Group’s objective to further improve capital ratios while
investing in profitable growth and increasing efficiency.
Also in 2014, we received a number of prestigious awards
including: “Best Trade Finance Bank in Switzerland”, “Best Foreign
Exchange Provider in Switzerland” and “Best Sub-Custodian Bank
in Switzerland” from Global Finance magazine, as well as “Best
Bank Debt – East Award” from Marine Money and “Best Private
Bank EMEA” from Corporate Jet Investor magazine, and the silver
medal from “Best of Swiss Apps 2014”.
Asset Management
In 2014, we made significant progress in our strategy and refo-
cused the business around a boutique model. We have redefined
our value proposition around three core elements: (i) highly spe-
cialized investment boutiques, (ii) governance, monitoring and fidu-
ciary capabilities for clients and (iii) leveraging our market-leading
talent and intellectual capital. We continue to optimize our distribu-
tion efforts to expand our client reach through our own distribution
teams, other Credit Suisse channels and third-party distribution
channels. Within a combined Private Banking & Wealth Manage-
ment division, we ensure close collaboration between the wealth
and asset management businesses. Our clients benefit from the
division-wide alignment and focusing of our investment ideas and
our UHNWI clients, in particular, from the increased speed in the
delivery of individually customized investment solutions as well
as the access to one of the leading global alternative investment
managers.
In alternative investments, we are focusing on providing inves-
tors with attractive investment alternatives to traditional equities
and fixed income. With CHF 81.5 billion in assets under man-
agement at year-end 2014 across hedge fund, credit, commodity
strategies and a broad asset spectrum in emerging markets, we
are one of the leading diversified alternatives managers globally.
Our goal is to further increase scale in our main businesses and to
seize opportunities in specialized niche areas.
With CHF 306.9 billion assets under management at year-
end 2014, our traditional investments business is a leader in the
Swiss market, offering equity, fixed income, real estate, index and
multi-asset class solutions products. Our strategic areas of focus
include positioning our traditional investments business as a Euro-
pean investment manager, expanding our footprint in Asia and
launching dedicated solutions and products for UHNWI clients. In
May 2014, Credit Suisse was named “Best Fund Provider In Swit-
zerland” by FERI EuroRating Services AG. Our real estate business
is a market leader in Switzerland and the third-largest European
property fund manager.
In April 2014, we entered into an agreement with the then
head of Credit Suisse Hedging-Griffo Asset Management pursu-
ant to which he became the controlling shareholder of a new firm,
Verde Asset Management, and we became a minority shareholder.
The new structure for this relationship follows a model adopted by
our Asset Management business designed to strengthen its plat-
form in Brazil. The transaction was completed in the fourth quarter
of 2014.
Products and services
The Private Banking & Wealth Management division offers a vari-
ety of products and services. They can be broadly divided into
those products and services provided by each of our businesses
within the division, as described below.
In Wealth Management Clients, our service offering is based on
our structured advisory process, client segment specific value
propositions, comprehensive investment services and our multi-
shore platform.
p Structured advisory process: We apply a structured
approach based on a thorough understanding of our clients’
needs, personal situation, product knowledge, investment
objectives and a comprehensive analysis of their financial
situation to define individual client risk profiles. On this basis
we define together with our clients an individual investment
strategy. This strategy is implemented ensuring that portfo-
lio quality standards are adhered to and that all investment
instruments are compliant with suitability and appropriateness
standards. Responsible for the implementation are either the
portfolio managers, in the case of discretionary mandates, or
our relationship managers working together with their advisory
clients.
p Client segment specific value propositions: We offer a
wide range of wealth management solutions tailored to specific
client segments. UHNWI and HNWI clients contributed 48%
and 41%, respectively, of assets under management in Wealth
Management Clients at the end of 2014. For entrepreneurs,
we offer solutions for a range of private and corporate wealth
management needs, including succession planning, tax advi-
sory, financial planning and investment banking services. Our
entrepreneur clients benefit from the advice of Credit Suisse’s

20
corporate finance advisors, access to a network of interna-
tional investors and professional support in financial transac-
tions. A specialized team, Solutions Partners, offers holistic
and tailor-made business and private financial solutions to our
UHNWI clients.
p Comprehensive investment services: We offer a compre-
hensive range of investment advice and discretionary asset
management services based on the outcome of our structured
advisory process and the guidelines of the Investment Strategy
& Research Group and the Credit Suisse Investment Com-
mittee. We base our advice and services on the analysis and
recommendations of our research teams, which provide a wide
range of global research including macroeconomic, equity,
bond and foreign-exchange analysis, as well as research on
the economy. Our investment advice covers a range of ser-
vices from portfolio consulting to advising on individual invest-
ments. We offer our clients portfolio and risk management
solutions, including managed investment products. These are
products actively managed and structured by our specialists or
third parties, providing private investors with access to invest-
ment opportunities that otherwise would not be available to
them. For clients with more complex requirements, we offer
investment portfolio structuring and the implementation of indi-
vidual strategies, including a wide range of structured prod-
ucts and alternative investments. Discretionary asset manage-
ment services are available to clients who wish to delegate
the responsibility for investment decisions to Credit Suisse.
We are an industry leader in alternative investments and, in
close collaboration with our Asset Management business and
Investment Banking, we offer innovative products with limited
correlation to equities and bonds, such as hedge funds, private
equity, commodities and real estate investments.
p Multi-shore platform: With global operations comprising 20
international booking centers in addition to our operations in
Switzerland, we are able to offer our clients booking capabili-
ties locally as well as through our international hubs. Our 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 wider
range of products than is available to them locally. In 2014,
CHF 26.4 billion of net new assets in Wealth Management Cli-
ents were booked outside of Switzerland, and we expect that
international clients will continue to drive our growth in assets
under management.
In accordance with our ambition to position ourselves as the “Bank
for Entrepreneurs”, we provide corporate and institutional clients
with a comprehensive range of financial solutions. To meet our
clients’ evolving needs, we deliver our offering through an inte-
grated franchise and growing international presence. Based on
this model, we are able to assist our clients in virtually every stage
of their business life cycle to cover their banking needs in Switzer-
land and abroad. For corporate clients, we provide a broad spec-
trum of core banking products such as traditional and structured
lending, payment services, foreign exchange, capital goods leas-
ing and investment solutions. In addition, we work closely with the
Investment Banking division to supply customized services in the
areas of mergers and acquisitions, syndications and structured
finance. For corporations with specific needs for global finance
and transaction banking, we provide services in commodity trade
finance, export finance as well as trade finance and factoring.
For our institutional clients, including pension funds, public sector
and UHNWI clients, we offer a wide range of fund solutions and
fund-linked services, including fund management and administra-
tion, fund design and comprehensive global custody solutions. Our
offering also includes ship and aviation finance and a competitive
range of services and products for financial institutions such as
securities, cash and treasury services.
Asset Management
In Asset Management, we offer institutional and individual clients
a range of products, including alternative and core traditional prod-
ucts. We reach our clients through our own distribution teams in
Private Banking & Wealth Management, the Investment Banking
division and through third-party distribution channels.
Our alternative investment offerings include hedge fund strat-
egies, alternative beta, commodities and credit investments. We
offer access to various asset classes and markets through stra-
tegic alliances and key joint ventures with external managers and
have a strong footprint in emerging markets.
Our core investment products include multi-asset class solu-
tions, which provide clients with innovative strategies and com-
prehensive management across asset classes to optimize client
portfolios with services that range from funds to fully custom-
ized solutions. Other core investment strategies include a suite
of fixed income, equity and real estate funds, and our indexed
solutions business which provides institutions and individual cli-
ents access to a wide variety of asset classes in a cost-effective
manner. Stressing investment principles such as risk management
and asset allocation, we take an active and disciplined approach
to investing.

Our businesses
Investment Banking
Business profile
Investment Banking provides a broad range of financial prod-
ucts and services, focusing on businesses that are client-driven,
q flow-based and capital-efficient. Our suite of products and
services includes global securities sales, trading and execution,
prime brokerage and capital raising and advisory services as well
as comprehensive investment research. Our clients include finan-
cial institutions, corporations, governments, institutional investors,
including pension funds and hedge funds, and private individuals
around the world. We deliver our global investment banking capa-
bilities via regional and local teams based in major developed and
emerging market centers. Our integrated business model enables
us to gain a deeper understanding of our clients and deliver cre-
ative, high-value, customized solutions based on expertise from
across Credit Suisse.
Key data – Investment Banking

in / end of

2014
2013
2012
Key data

12,515
12,565
12,558
Income before taxes (CHF million)
1,830
1,719
2,002
Number of employees
19,400
19,700
19,800
Operating conditions were generally favorable in 2014, despite a
challenging start to the year for some of our businesses. In fixed
income sales and trading, we experienced continued momentum in
securitized products given investor demand for yield products amid
a low interest rate environment. Emerging markets client activity
rebounded following difficult trading conditions early in the year
due to the US Federal Reserve’s actions to end its bond-buy-
ing program. Our macro businesses were negatively impacted by
structural and regulatory industry changes, specifically the migra-
tion of markets towards cleared and electronic trading, though
client activity improved from low levels in the second half of the
year. Equities sales and trading results were subdued in light of a
low volume, low volatility environment and as 2013 benefited from
quantitative easing in Japan and strong Brazil performance. Equity
underwriting activity was robust, reflecting low levels of volatility,
though debt underwriting activity declined, reflecting weak high
yield market issuance, due to increased fourth quarter volatility.
M&A activity also increased reflecting higher completed M&A vol-
umes and increased chief executive officer (CEO) confidence in
the Americas. In addition, from a regulatory perspective, financial
institutions across the globe continued to face significant pressure
to adapt to the changing market requirements. To this end, we are
focused on building a capital efficient Investment Banking busi-
ness. We have significantly evolved our business model and were
one of the first global banks to be q Basel III compliant, begin-
ning in January 2013. With heightened regulatory emphasis on
leverage exposure, we are focused on optimizing our balance sheet
in an effort to achieve the Group’s targets. As a result, we expect
increased capital and liquidity requirements and qderivatives reg-
ulation to result in reduced risk-taking and enhanced transparency.
Strategy
We continue to proactively pursue a client-focused, cost- and cap-
ital-efficient business model. Specifically, our key priorities include:
allocating resources to our market-leading and capital-efficient
businesses where we expect to generate strong returns on regula-
tory capital; increasing profitability and reducing capital usage in
our repositioned macro business; optimizing delivery and product
set across Investment Banking to drive growth in Private Banking
& Wealth Management; offsetting higher regulatory costs with
continued cost efficiencies; and winding down our non-strategic
unit’s Basel III risk-weighted assets and leverage exposure to
reduce the negative impact on both pre-tax income and return on
regulatory capital.
Over the past two years, we have made considerable progress
in improving capital efficiency. We reduced Basel III risk-weighted
assets usage for Investment Banking by USD 13 billion or 7%
from USD 175 billion in 2013 to USD 161 billion in 2014. Addi-
tionally, we reduced Swiss leverage exposure by USD 42 billion
from USD 836 billion in 2013 to USD 794 billion in 2014. We
expect to further optimize leverage exposure through the contin-
ued wind-down of our non-strategic unit, structural optimization of
our balance sheet and selected business reductions in our strate-
gic businesses.
As part of the continuing efforts to advance our business
model, we created a non-strategic unit within Investment Bank-
ing in 2013, with the goal of reducing costs, capital and leverage
exposure in the non-strategic portfolio and redeploying resources
to growth initiatives in high returning businesses. Non-strategic
results for Investment Banking include the fixed income wind-down
portfolio, legacy rates business, primarily non-exchange-cleared
instruments and capital-intensive structured positions, commodi-
ties trading business, legacy funding costs associated with non-
Basel III compliant debt instruments, as well as certain legacy
litigation costs and other small non-strategic positions. In 2014,
we made significant progress in winding down our non-strategic
Basel III risk-weighted assets and leverage exposure. Specifically,
we reduced Basel III risk-weighted assets by USD 11 billion or
51% and leverage exposure by USD 23 billion or 27% from year-
end 2013. In connection with these actions, we are targeting non-
strategic Basel III risk-weighted asset reductions of USD 4 billion
from year-end 2014 to USD 6 billion by the end of 2015 and non-
strategic Swiss leverage exposure reductions of USD 40 billion
from year-end 2014 to USD 24 billion by the end of 2015.
Over the past few years, our macro businesses have been
impacted by a combination of adverse market conditions and
changes in the structural and regulatory landscape. In 2014, we
exited and transferred our commodities trading business into our
non-strategic unit to further maximize franchise profitability. With

22
regard to our ongoing businesses, we re-focused our foreign
exchange business towards electronic trading, while selectively
maintaining voice offerings for key clients and trades. We also
further simplified the rates product offering, focusing primarily on
satisfying client liquidity needs in cash products and derivatives.
Another component of our evolved strategy is our focus on
cost initiatives, which have been ongoing since the second quarter
of 2011. We remain focused on improving operating efficiency and
are targeting the delivery of CHF 1.85 billion of direct cost sav-
ings by end 2015 compared to the annualized six-month 2011 run
rate. These savings are measured at constant foreign exchange
rates and adjusted to exclude significant non-operating expenses
and variable compensation expenses. Through these initiatives, we
are creating significant flexibility in our Investment Banking cost
structure, which allows us to adapt to the challenging market envi-
ronment while taking advantage of favorable market opportunities
when they arise.
Looking ahead, we believe our client-focused and cost- and
capital-efficient strategy will allow us to deliver strong returns. We
continue to refocus resources on opportunities in high-returning
businesses such as securitized products, global credit products,
cash equities, prime services, and emerging markets, and to
reduce the negative impact on both pre-tax income and return on
regulatory capital from the non-strategic unit.
u Refer to “Regulation and supervision” for further information on regulatory
developments.
Significant transactions
We executed a number of noteworthy transactions in 2014, reflect-
ing the breadth and diversity of our Investment Banking franchise:
p Debt capital markets: We arranged key financings for
a diverse set of clients including Zimmer Holdings (medical
devices), Sharjah Electricity and Water Authority (energy),
AT&T (telecom), Verizon Communications (telecom) and Credit
Agricole (financial services).
p Equity capital markets: We executed the initial public offer-
ing (IPO) for Alibaba (online retailer), IPO of Parsley Energy (oil
and natural gas company), IPO of Jumei International Holdings
(consumer), follow-on offering for Piraeus Bank Group (finan-
cial and banking services), follow-on offering for Diamondback
Energy (oil and natural gas company), follow-on offering for
Enel SPA (electricity and natural gas) and follow-on offering
for Fibra Uno de Mexico (operates as a real estate investment
trust).
p Mergers and acquisitions: We advised on a number of key
transactions throughout the year, including Beam’s acquisi-
tion of Suntory Holdings Limited (alcoholic beverages), Lenovo
Group’s acquisition of the mobile handset division of Google
(technology), sale of Paladin Labs to Endo Health Solutions
(health care), Analog Devices’ acquisition of Hittite Microwave
Corp (defense), Merck’s acquisition of Idenix Pharmaceuti-
cals (pharmaceuticals) and GlencoreXstrata’s sale of its entire
interest in the Las Bambas copper mine project (mining).
Market share momentum
p We remained the top-ranked European prime broker for the
fifth consecutive year according to EuroHedge Magazine.
p We maintained our position as the second-ranked prime broker
in Asia for the second consecutive year, according to the 2014
AsiaHedge Survey.
p We maintained our top-three ranking in Americas prime bro-
kerage for the second consecutive year, according to The
Absolute Return 2014 Prime Brokerage Survey.
Products and services
Our comprehensive portfolio of products and services is aimed
at the needs of the most sophisticated clients, and we increas-
ingly use integrated platforms to ensure efficiency and transpar-
ency. Our activities are organized around two broad functional
areas: investment banking and global securities. In investment
banking, we work 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 M&A
and financing products. The country groups include Europe, Latin
America, North America, Japan, Non-Japan Asia, and Emerging
Europe. In global securities, we engage in a broad range of activi-
ties across fixed income, currencies, commodities, derivatives and
cash equities markets, including sales, structuring, trading, financ-
ing, prime brokerage, syndication and origination, with a focus on
client-based and flow-based businesses, in line with growing client
demand for less complex and more liquid products and structures.
Investment banking
The investment banking industry, product and country groups pro-
vide the following services.
Equity and debt underwriting
Equity capital markets originates, syndicates and underwrites
equity in 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
Advisory services advises clients on all aspects of M&A, corpo-
rate sales and restructurings, divestitures and takeover defense
strategies. The fund-linked products group is responsible for the
structuring, risk management and distribution of structured mutual
fund and alternative investment products and develops innovative
products to meet the needs of its clients through specially tailored
solutions.
Global securities
Global securities provides access to a wide range of debt and equity
securities, derivative products and financing opportunities across
the capital spectrum to corporate, sovereign and institutional clients.
Global securities is structured into the areas outlined below.

Our businesses
Fixed income
p Credit products offers a full range of fixed income products
and instruments to clients across investment grade and high
yield credits, ranging from standard debt issues and credit
research to fund-linked products, derivatives instruments and
structured solutions that address specific client needs. We are
a leading dealer in flow trading of single-name qcredit default
swap (CDS) on individual credits, credit-linked notes and index
swaps. Investment grade trades domestic corporate and sov-
ereign debt, non-convertible preferred stock and short-term
securities such as floating rate notes and qcommercial paper.
Leveraged finance provides capital raising and advisory ser-
vices and core leveraged credit products such as bank loans,
bridge loans and high yield debt for non-investment grade cor-
porate and financial sponsor-backed companies.
p Securitized products trades, securitizes, syndicates, under-
writes and provides research for various forms of securities,
primarily q residential mortgage-backed securities (RMBS)
and asset-backed securities (ABS). Both RMBS and ABS are
based on underlying pools of assets, and include both govern-
ment- and agency-backed, as well as private label loans.
p Emerging markets offers a full range of fixed income prod-
ucts and instruments, including sovereign and corporate secu-
rities, local currency derivative instruments and tailored emerg-
ing market investment products.
p Global macro products includes our restructured rates and
foreign exchange businesses. Our rates business is a global
market maker in cash and derivatives markets and a primary
dealer in multiple jurisdictions including the US, Europe and
Japan. This business covers a spectrum of government bonds,
interest rate swaps and options, and provides liability and
liquidity management solutions. Foreign exchange provides
market making in products such as spot and options for cur-
rencies in developed markets. The foreign exchange product
suite also includes proprietary market leading technology to
provide clients with electronic trading solutions.
Equity
p Cash equities provides a comprehensive suite of offerings;
such as (i) research, analytics and other content-driven prod-
ucts and services, to meet the needs of clients including mutual
funds, investment advisors, banks, pension funds, hedge
funds, insurance companies and other global financial insti-
tutions; (ii) sales trading, responsible for managing the order
flow between our clients and the marketplace and providing
clients with trading ideas and capital commitments, identifying
trends and delivering the most effective execution; (iii) trading,
which executes client orders and makes markets in listed and
q over-the-counter (OTC) cash securities, exchange-traded
funds and programs, providing liquidity to the market through
both capital commitments and risk management; and (iv) Credit
Suisse’s qadvanced execution services (AES), a sophisticated
suite of algorithmic trading strategies, tools and analytics to
facilitate global equity trading. By employing algorithms to exe-
cute client orders and limit volatility, AES helps institutions and
hedge funds reduce market impact. AES is a recognized leader
in its field and provides access to exchanges in more than 35
countries worldwide via more than 45 leading trading platforms.
p Equity derivatives provides a full range of equity-related
products, investment options and financing solutions, as well
as sophisticated hedging and risk management expertise and
comprehensive execution capabilities to financial institutions,
hedge funds, asset managers and corporations.
p Convertibles involves both secondary trading and market mak-
ing and the trading of credit default and asset swaps and distribut-
ing market information and research. The global convertibles busi-
ness is a leading originator of new issues throughout the world.
p Prime services offers hedge funds and institutional cli-
ents execution, financing, clearing and reporting capabilities
across various asset classes through prime brokerage, syn-
thetic financing and listed and OTC derivatives. In addition,
prime services is a leading provider of advisory services across
capital services and consulting for both start-ups and existing
clients.
Systematic market-making group
The systematic market-making group operates a range of liquidity-
providing and market-making strategies in liquid markets.
Other
Other products and activities include lending, 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.
Research and HOLT
Our equity and fixed income businesses are enhanced by the
research and HOLT functions. HOLT offers a framework for
objectively assessing the performance of 20,000 companies in
over 60 countries, with interactive tools and consulting services
that clients use to make informed investment decisions.
Equity and fixed income research uses in-depth analytical
frameworks, proprietary methodologies and data sources to ana-
lyze approximately 3,000 companies worldwide and provide mac-
roeconomic insights into this constantly changing environment.

24
Organizational and regional structure
Organizational structure
We operate in two global divisions and reporting segments – Pri-
vate Banking & Wealth Management and Investment Banking.
Consistent with our client-focused, capital-efficient business strat-
egy, we coordinate activities in four market regions: Switzerland,
EMEA, Americas and Asia Pacific. In addition, Shared Services
provides centralized corporate services and business support, as
well as effective and independent control procedures in the follow-
ing areas:
p The Chief Financial Officer (CFO) area covers many diverse
functions, including Corporate Development, Information Tech-
nology, Corporate Real Estate & Services, Group Insurance,
Efficiency Management, New Business, Global Operations,
Product Control, Tax and Treasury and Group Finance, includ-
ing Financial Accounting and Investor Relations.
p The Legal and Compliance area provides legal and compli-
ance support to help protect the reputation of Credit Suisse.
It does so by giving legal and regulatory advice and providing
employees with the tools and expertise to comply with appli-
cable internal policies and external laws, rules and regulations.
p The Chief Risk Officer (CRO) area comprises market, credit,
operational and fiduciary risk management, enterprise risk
management and risk & finance data analytics and reporting,
which cooperate closely to maintain a strict risk control envi-
ronment and to help ensure that our risk capital is deployed
wisely.
p The Talent, Branding and Centers of Excellence area com-
prises human resources, corporate branding and advertising
and our CoE. Human Resources strives to attract, retain and
develop staff, while also creating a stimulating working envi-
ronment for all employees. Branding works closely with the
businesses to manage our brand as a common touchstone, a
differentiator in a competitive market and a motivator of behav-
ior and our promise to clients. Our CoE support our global
operations in process optimization by providing services and
best practices away from the on-shore locations and are an
essential component in the implementation of our strategy.
Other functions providing corporate services include Corporate
Communications, One Bank Collaboration and Public Policy.
Corporate Communications provides support in media relations,
crisis management, executive and employee communications. One
Bank Collaboration facilitates cross-divisional collaboration initia-
tives throughout the Group and measures and controls collabora-
tion revenues. Public Policy promotes and protects the interests of
Credit Suisse and its reputation.
The divisional CEOs report directly to the Group CEO,
and, together with the CFO, CRO, General Counsel and Chief
Marketing and Talent Officer, they formed the Executive Board of
Credit Suisse in 2014.
Our Internal Audit function reports directly to the Audit
Committee of the Board of Directors.
Our structure is designed to promote cross-divisional collabo-
ration while leveraging resources and synergies within our four
regions. The regions perform a number of essential functions to
coordinate and support the global operations of the two divisions.
On a strategic level, regions are responsible for corporate develop-
ment and the establishment of regional business plans, projects
and initiatives. They also have an oversight role in monitoring finan-
cial performance. Each region is responsible for the regulatory
relationships within its boundaries, as well as for regulatory risk
management and the resolution of significant issues in the region
as a whole or its constituent countries. Other responsibilities
include client and people leadership and the coordination of the
delivery of Shared Services and business support in the region.
Market regions
Switzerland
Switzerland, our home market, represents a broad business port-
folio. We have 17,100 employees in Switzerland. Reflecting our
ambition to position Credit Suisse as the “Bank for Entrepreneurs”,
we help to consolidate the success of the Swiss economy and to
promote entrepreneurship. The Private Banking & Wealth Man-
agement division comprises our Wealth Management Clients, Cor-
porate & Institutional Clients and Asset Management businesses.
In Wealth Management Clients, we offer our clients a distinct value
proposition by combining a global reach with a structured advisory
process and access to a broad range of sophisticated products
and services tailored to different client groups, from private clients
to qUHNWI. We serve clients in 204 branches. Additionally, we
are dedicated experts for our external asset manager business.
In Corporate & Institutional Clients, we provide premium advice
and solutions within a broad range of banking services, including
lending, cash and liquidity management, trade finance, corporate
finance, foreign exchange, investment solutions, ship and aviation
finance, global custody and asset and liability management. Cli-
ents taking advantage of these solutions include SME, global cor-
porations and commodity traders, banks and Swiss pension funds.
Asset Management offers an array of highly specialized investment
boutiques, for example, traditional investments, alternatives and
discretionary mandates. The Investment Banking division offers
a full range of financial services to its Swiss client base, holding
market-leading positions in the Swiss debt and capital markets as
well as in M&A advisory.

Organizational and regional structure
EMEA
We are active in 28 countries across the EMEA region with 9,900
employees working in 51 offices. Our regional headquarters is in
the UK, but we have an onshore presence in every major EMEA
country. The EMEA region encompasses both developed markets,
such as France, Germany, Italy, Spain and the UK, and emerging
markets, including the Middle East, Poland, Russia, South Africa
and Turkey. We implemented our client-focused integrated strat-
egy at the country level, serving corporate, government, institu-
tional and private clients. Both divisions are strongly represented
in the EMEA region, with the Investment Banking division provid-
ing a spectrum of financial advisory services with strong market
shares across many key products and markets. The Private Bank-
ing & Wealth Management division continues to further develop its
integrated UHNWI offerings and to focus on the distribution of a
variety of investment products, including alternative investments
and core investments such as equities, fixed income, real estate,
multi-asset class solutions and index solutions.
Americas
We have operations in the US, Canada, the Caribbean and Latin
America with 10,900 employees working in 42 offices spanning
14 countries. In the US, our emphasis is on our core client-focused
and market-leading businesses in Investment Banking, and on
building on market share gains we have achieved in a capital-effi-
cient manner. In Private Banking & Wealth Management, we see
considerable potential to leverage our cross-divisional capabilities,
as we further develop our onshore wealth management platform in
the US, Brazil, Canada and Mexico. In Latin America, particularly
in our key markets of Brazil and Mexico, we continue to focus on
providing clients with a full range of cross-divisional services.
Asia Pacific
We are present in 12 Asia Pacific countries with 7,900 employ-
ees working in 25 offices, giving us one of the broadest footprints
among international banks in the region. Singapore and Hong
Kong are key hubs for our Private Banking & Wealth Manage-
ment business, while Australia and Japan are home to our expand-
ing domestic private banking franchises. We serve UHNWI and
qHNWI, combining global reach with a structured advisory pro-
cess, offering distinct client segment specific value propositions,
as well as access to a broad range of comprehensive and sophis-
ticated products and services. We also deliver innovative and inte-
grated solutions in close collaboration with our Investment Banking
division. Our market-leading Investment Banking business oper-
ates principally in Hong Kong and Singapore. The strong equity
and research platform helps underpin a robust capital markets and
Investment Banking franchise. The Investment Banking division is
recognized as a leader in the industry, contributing thought lead-
ership through research, conferences and industry commentary.

26
Regulation and supervision
Overview
Our operations are regulated by authorities in each of the jurisdic-
tions in which we have offices, branches and subsidiaries.
Central banks and other bank regulators, financial services
agencies, securities agencies and exchanges and self-regulatory
organizations are among the regulatory authorities that oversee
our businesses. There is coordination among many of our regula-
tors, in particular among our primary regulators in Switzerland, the
US, the EU and the UK as well as in the Asia Pacific region.
The supervisory and regulatory regimes of the countries in which
we operate determine to some degree our ability to expand into new
markets, the services and products that we are able to offer in those
markets and how we structure specific operations. We are in compli-
ance with our regulatory requirements in all material respects and in
compliance with regulatory capital requirements.
Governments and regulatory authorities around the world have
responded to the challenging market conditions beginning in 2007
by proposing and enacting numerous reforms of the regulatory
framework for financial services firms such as the Group. In par-
ticular, a number of reforms have been proposed and enacted by
regulators, including our primary regulators, which could potentially
have a material effect on our business. These regulatory develop-
ments could result in additional costs or limit or restrict the way
we conduct our business. Although we expect regulatory-related
costs and capital requirements for all major financial services firms
(including the Group) to continue to be high, we cannot predict the
likely impact of proposed regulations on our businesses or results.
We believe, however, that overall we are well positioned for regula-
tory reform, as we have reduced risk and maintained strong capi-
tal, funding and liquidity.
u Refer to “Risk factors” for further information on risks that may arise relating to
regulation.
Recent regulatory developments and
proposals
Some of the most significant regulations proposed or enacted dur-
ing 2014 and early 2015 are discussed below.
Switzerland
As of January 1, 2013, the q Basel III framework was imple-
mented in Switzerland along with the Swiss q “Too Big to Fail”
legislation and regulations thereunder. Together with the related
implementing ordinances, the legislation includes capital, liquidity,
leverage and large exposure requirements, and rules for emer-
gency plans designed to maintain systemically relevant functions
in the event of threatened insolvency. Certain requirements under
the legislation, including those regarding capital, are to be phased
in through year-end 2018.
u Refer to “Liquidity and funding management” and “Capital management” in
III – Treasury, Risk, Balance sheet and Off-balance sheet for information regard-
ing our current regulatory framework and expected changes to this framework
affecting capital and liquidity standards.
Supervision
On April 30, 2014, the Swiss Federal Council enacted an encom-
passing revision of the Swiss Federal Ordinance on Banks and
Savings Banks (Banking Ordinance). The revision includes the
implementation of the new Swiss accounting legislation of the
Swiss Code of Obligations, in force since January 1, 2013, for
Swiss banks as well as of the regulations in the Swiss Federal Law
on Banks and Savings Banks of November 8, 1934, as amended
(Bank Law), in force since January 1, 2015, regarding dormant
assets. The revision entered into force on January 1, 2015, but
certain regulations, such as the individual valuation of participa-
tions, are subject to transitional provisions until full implementation
on January 1, 2020. In December 2014, the Swiss Bankers Asso-
ciation issued new guidelines on the treatment of assets without
contact and dormant assets held at Swiss banks. The guidelines
entered into effect on January 1, 2015 and have been accepted
by the q Swiss Financial Market Supervisory Authority FINMA
(FINMA) as a minimum standard. The guidelines implement the
related provisions in the revised Banking Ordinance and Bank Law
in force since January 1, 2015, allowing information on dormant
accounts to be published and allowing the transfer of the dormant
assets to another bank, in each case without the client’s consent.
On June 3, 2014, FINMA published Circular 2015/1 “Account-
ing – Banks” which, in conjunction with the revised Banking
Ordinance, contains the new accounting guidelines and report-
ing duties for Swiss financial groups and conglomerates, banks
and securities dealers, including us. Circular 2015/1 entered into
effect on January 1, 2015.
On June 27, 2014, the Swiss Federal Council published the
draft Federal Financial Services Act (FFSA) and draft Financial
Institutions Act (FinIA) for consultation. The FFSA governs the
prerequisites for offering financial instruments and providing finan-
cial services, including the resolution of related disputes and the
provision of financial services to Swiss clients on a cross-border
basis. The draft FinIA provides for a differentiated supervisory
regime for financial institutions and a special due diligence obli-
gation to prevent the acceptance of untaxed assets. The con-
sultation period ended on October 17, 2014. It is expected that
dispatches on the FFSA and the FinIA are adopted by the Swiss
Federal Council and draft legislation submitted to the Swiss Parlia-
ment during the second half of 2015.
On December 12, 2014, the Swiss Parliament revised the
Bank Law, the Swiss Federal Act on Stock Exchanges and Secu-
rities Trading (SESTA) and the Collective Investment Schemes
Act to improve the protection of non-public information against
violations of professional secrecy obligations. Pursuant to the revi-
sions, receivers of the disclosed information are now penalized if
they further disclose or utilize such information. The revisions also
increased the maximum prison penalty to five years when there is
a pecuniary advantage involved. The revisions are subject to a ref-
erendum until April 2, 2015.

On December 12, 2014, the Swiss Parliament adopted the
Federal Act on Implementing the Revised Recommendations of
2012 of the Financial Action Task Force. The act revises a number
of Swiss federal acts, including the Swiss Federal Act on Com-
bating Money Laundering and Terrorist Financing in the Financial
Sector and the Swiss Code of Obligations. Among others, the act
intends to improve transparency with respect to legal entities and
bearer shares, provide for more stringent obligations for financial
intermediaries in connection with the identification of legal entities’
beneficial owners, expand the term “politically exposed person”
and introduce new predicate offenses for money laundering. This
revision is subject to a referendum until April 2, 2015.
Derivative regulation
On September 3, 2014, the Swiss Federal Council adopted the
dispatch on the Financial Market Infrastructure Act (FMIA) and
submitted it to the Swiss Parliament. The core purpose of the
FMIA is to adjust Swiss regulation of financial market infrastructure
and qderivatives trading to market developments and international
requirements, in particular the EU regulation on q OTC Deriva-
tives, Central Counterparties and Trade Repositories (also known
as the European Market Infrastructure Regulation, or EMIR).
On November 12, 2014, the International Swaps and Deriva-
tives Association, Inc. (ISDA) published the ISDA 2014 Resolution
Stay Protocol (Protocol), which the Chairman of the Financial Sta-
bility Board recognized as a crucial element of regulators’ global
efforts to end “Too Big to Fail.” The Protocol provides a contractual
approach to cross-border recognition of resolution regimes to sup-
plement and extend the powers available to resolution authorities
under national statutory resolution regimes, including the Swiss
regime administered by FINMA. Credit Suisse, together with 17
other banking groups identified as global systemically important
banks by the Financial Stability Board, voluntarily adhered to the
Protocol, which amends the terms of ISDA Master Agreements
and related credit-support arrangements between the adhering
parties to make such agreements subject to certain designated
“Special Resolution Regimes”, regardless of the governing law of
the agreement. As a result, were one of the parties to the Protocol
to enter resolution under a regime covered by the Protocol, the
swaps and derivatives documented under ISDA Master Agree-
ments between the party in resolution and the other parties to
the Protocol would be subject to the provisions of the resolution
regime for the party being resolved, including the provisions that
stay or override termination rights. The Protocol also introduces
similar stays and overrides in the event that an affiliate of an adher-
ing party becomes subject to proceedings under certain ordinary
US insolvency regimes, under which no such stays or overrides
currently exist. However, such stays and overrides applicable under
ordinary US insolvency regimes will not be effective under this por-
tion of the Protocol until US regulators enact regulations requiring
banks and their counterparties generally to trade on terms similar
to those provided under the Protocol. As a result of the Protocol,
it is anticipated that, upon the resolution of a party to the Protocol,
under certain circumstances, derivatives counterparties that have
adhered to the Protocol will be prevented from immediately termi-
nating outstanding derivatives contracts, giving regulators time to
resolve a troubled institution in an orderly manner. The Protocol
was developed by a working group of ISDA member institutions,
including Credit Suisse, other dealer banks and buyside represen-
tatives, in coordination with the Financial Stability Board. Regu-
lations resulting in adherence to the Protocol by other of Credit
Suisse’s counterparties, including other dealer banks that have not
yet adhered to the Protocol and end user and buyside counterpar-
ties, are expected in 2015, with effectiveness in 2016 or 2017.
Cross-border cooperation
On January 1, 2014, two implementation agreements, which
supplement the agreement between Switzerland and Germany to
increase cross-border cooperation, entered into effect. The imple-
mentation agreements were finalized by FINMA and Germany’s
Federal Financial Supervisory Authority and define the scope of
cooperation. The cross-border cooperation agreement aims to
facilitate the ability of financial institutions in both countries to pro-
vide banking services and mutual funds to customers in the other
country. The agreement is expected to remain effective under the
revised Markets in Financial Instruments Directive (MiFID II), sub-
ject to the assessment of the Swiss and German authorities on the
compatibility of the agreement with MiFID II.
Executive compensation
On March 3, 2013, Swiss citizens approved the so-called “Minder
Initiative” intended to strengthen shareholder rights. The initiative
requires legislation to be passed to impose board and executive
compensation-related requirements on Swiss public companies,
including requiring a binding (rather than advisory) shareholder
vote on total board and total executive management compensa-
tion and prohibiting severance payments, salary prepayments and
payments related to the acquisition or disposal of companies. The
initiative also provides that the board members, the board chair-
person and the compensation committee members be directly
elected by shareholders annually, which happened for the first time
at Credit Suisse’s annual general meeting in 2014. Further, the
initiative calls for criminal sanctions in case of noncompliance. The
Swiss Federal Council issued the transitional ordinance on Novem-
ber 20, 2013, which entered into force on January 1, 2014. The
Ordinance against Excessive Compensation with respect to Listed
Stock Corporations (Compensation Ordinance) implements the ini-
tiative until the final legal implementation is approved by the parlia-
ment and enters into force.
On November 28, 2014, the Swiss Federal Council published
a white paper and a consultation draft for the reform of Swiss cor-
poration law. The proposal covers a variety of different matters,
such as capital structure and shares, capital increases and reduc-
tions, rights of shareholders at and before shareholders’ meet-
ings and shareholder lawsuits, and also implements compensation
matters currently regulated in the Compensation Ordinance. The
consultation period ended on March 15, 2015.

28
Reimbursement of commissions
The Swiss Federal Supreme Court issued a decision in the fourth
quarter of 2012 in a case brought by a client of another bank
seeking reimbursement of commissions paid to the client’s bank by
providers of investment products. The court ruled that such pay-
ments (“retrocessions”) received in the context of a discretionary
asset management mandate from issuers of investment products
are owed to the client (including payments from intra-group com-
panies) unless a client waiver is in place. Based on our current
evaluation, we expect no material exposure from this decision. In
line with industry trends, we have introduced several inducement-
free offerings.
Tax
On February 1, 2013, the Swiss Tax Administrative Assistance
Act entered into force. The act governs administrative assistance
in double taxation and other international agreements that Swit-
zerland has entered into which provide for the exchange of infor-
mation relating to tax matters consistent with Article 26 of the
Organization for Economic Cooperation and Development (OECD)
Model Tax Convention. Under the act, administrative assistance is
no longer prohibited for group requests based on a behavioral pat-
tern, but so-called “fishing expeditions” are expressly prohibited. In
August 2013, the Swiss Federal Council announced that it would
seek to amend the act to comply with international standards. In
March 2014, the Swiss Parliament approved amendments relat-
ing to the deferred notification of parties concerned, which will
allow in certain cases that the affected taxpayer be informed after
the information has been communicated to the authorities of the
requesting country, and the establishment of a special procedure
for informing parties affected by a group request. Such amend-
ments entered into force on August 1, 2014.
On December 18, 2013, the Swiss Federal Council adopted
the mandate for negotiations regarding a revision of the taxation
of savings agreement between the EU and Switzerland. The envis-
aged revision should bring the agreement in line with the planned
revision of the EU Savings Directive and close current perceived
gaps. Switzerland and the EU have officially started negotia-
tions on January 17, 2014. In October 2014, the European Union
Economic and Financial Affairs Council (ECOFIN) published a
revised Directive on Administrative Cooperation in the field of taxa-
tion between EU member states, intending to extend the scope
for mandatory automatic exchange of information between tax
administrations. In December 2014, the ECOFIN agreed on the
extended scope and this decision implements the OECD automatic
exchange of information standard within the EU. The EU is trying
to reach an agreement with third countries such as Switzerland
regarding amendments to saving taxation agreements implement-
ing the EU Savings Directive.
On May 6, 2014, Switzerland, along with other 46 countries
and the EU, endorsed the Declaration on Automatic Exchange
of Information in Tax Matters at the Ministerial Council Meeting
of the OECD. The Declaration commits countries to implement a
new single global standard on automatic exchange of information.
The standard, which was developed at the OECD and endorsed
by G20 finance ministers in February 2014, obliges countries and
jurisdictions to obtain all financial information from their financial
institutions and exchange that information automatically with other
jurisdictions on an annual basis.
On June 2, 2014, the agreement on cooperation to simplify
the implementation of the Foreign Account Tax Compliance Act
(FATCA) between Switzerland and the US entered into force. The
corresponding implementing act entered into force on June 30,
2014. FATCA implementation in Switzerland is based on Model
2, which means that Swiss financial institutions disclose account
details directly to the US tax authority with the consent of the US
clients concerned, and that the US has to request data on recal-
citrant clients through normal administrative assistance channels.
The agreement is expected to reduce the administrative burden for
Swiss financial institutions associated with the implementation of
FATCA. FATCA requirements entered into force on July 1, 2014.
On September 22, 2014, the Swiss Federal Council launched
a consultation on its draft Corporate Tax Reform III, consisting
largely of three elements: (i) the introduction of new measures to
tax mobile income in line with international standards, (ii) a pro-
posed general reduction of cantonal income tax rates, which would
also require approval at the cantonal level, and (iii) specific adjust-
ments to enhance the corporate income tax system. The consulta-
tion period ended on January 31, 2015.
On October 8, 2014, as a consequence of Switzerland’s
endorsement of the Declaration on Automatic Exchange of Infor-
mation in Tax Matters at the Ministerial Council Meeting of the
OECD, the Swiss Federal Council approved negotiation mandates
to introduce the new global standard with partner states, including
switching to Model 1 under FATCA, which would provide for the
automatic exchange of information with the US tax authority. The
results of the negotiations and the proposed legislation would then
need to be submitted to the Swiss Parliament.
On November 19, 2014, the Swiss Federal Council approved
a declaration on Switzerland joining the multilateral agreement on
the automatic exchange of information in tax matters (Multilat-
eral Competent Authority Agreement on the Automatic Exchange
of Financial Account Information). This international agreement,
which was developed within the OECD framework, forms a basis
for the future introduction of the cross-border automatic exchange
of information. The Swiss Parliament is expected to separately
decide the countries with which Switzerland should introduce this
exchange of information. Subject to the approvals by the Swiss
Parliament and, if necessary, the Swiss voters, the Federal Coun-
cil intends to begin the data collection in 2017 and to start the
exchange of information in 2018.
On December 17, 2014, the Swiss Federal Council published
draft legislation for consultation refining the Swiss federal with-
holding tax system, in particular to facilitate the raising of capital
within Switzerland. The proposal includes the partial introduction of
a paying agent-based regime instead of the existing debtor-based
regime for withholding tax. Under the current system, withholding
tax is imposed and collected irrespective of the beneficiary of the

taxable payment. Under the new system, withholding tax generally
would be imposed only on payments beneficially owned by Swiss
tax residents. As a consequence, the paying agent would have
to decide whether withholding tax is to be collected on a case
by case basis. Certain exceptions from the paying agent-based
regime are proposed, in particular with respect to income from
Swiss participation rights (e.g. dividend income). In order to avoid
evasion by individuals resident in Switzerland through the interpos-
ing of a custodian bank abroad, the enactment of the new system
depends upon the automatic exchange of information with a suf-
ficient number of other states. In light of this, the Swiss Federal
Council mentions 2019 as a potential year for entry into force. The
consultations are scheduled to run until March 31, 2015.
On January 14, 2015, the Swiss Federal Council launched
two consultations on the international exchange of information in
tax matters. The purpose of both consultations is to enable the
automatic exchange of information. One consultation relates to
Switzerland’s participation in the Multilateral Competent Authority
Agreement on the Automatic Exchange of Financial Account Infor-
mation and the related Swiss implementing act. The other consul-
tation concerns the OECD’s and Council of Europe’s administrative
assistance convention. The consultation is scheduled to run until
April 21, 2015.
On January 16, 2015, Switzerland and Italy reached an agree-
ment in principle on future cooperation in tax matters. Subse-
quently, they signed a protocol of amendment to the double taxa-
tion agreement and a roadmap with parameters. The agreement is
expected to improve relations between Switzerland and Italy with
regard to financial and tax matters and simplify the regularization
of untaxed assets before the automatic exchange of information is
introduced. The protocol of amendment provides for an exchange
of information upon request according to the OECD Standard on
Exchange of Information, applicable from the date of signing of the
protocol. In addition, Switzerland and Italy have reached consen-
sus about a roadmap on bilateral topics, including the introduction
of automatic exchange of information.
Resolution regime
On January 1, 2014, revisions of the Federal Act of 11 April 1889
on Debt Enforcement and Bankruptcy entered into effect. The
revisions seek to facilitate the restructuring of companies and to
strengthen creditors’ rights in provisional or definitive stays. In
addition, it introduced certain procedural changes and a special
treatment of continuing obligations (i.e., contracts such as leases,
rentals or loans that contain a continuing and repeated exchange
of money, goods or services), which in case of a provisional or
definitive stay, may in the future be terminated at will by the debtor
at any time with the permission of the receiver against payment of
a compensation if a restructuring would otherwise be defeated.
The draft FMIA submitted by the Swiss Federal Council to the
Swiss Parliament on September 3, 2014 also proposes to amend
the Bank Law, seeking to subject parent companies of financial
groups or conglomerates and certain unregulated companies of
groups domiciled in Switzerland to the Swiss resolution regime that
applies to banks. If enacted, Credit Suisse Group would, and cer-
tain of its unregulated Swiss-domiciled subsidiaries could, become
subject to the Swiss bank resolution regime and the resolution
authority of FINMA.
US
In July 2010, the US enacted the Dodd-Frank Wall Street Reform
and Consumer Protection Act (Dodd-Frank Act), which provides
a broad framework for regulatory changes. Although rulemaking
in respect of many of the provisions of the Dodd-Frank Act has
already taken place, implementation will require further detailed
rulemaking over several years by different regulators, including
the US Department of the Treasury (US Treasury), the US Fed-
eral Reserve (Fed), the US Securities and Exchange Commission
(SEC), the Office of the Comptroller of the Currency (OCC), the
Federal Deposit Insurance Corporation (FDIC), the Commodity
Futures Trading Commission (CFTC) and the Financial Stability
Oversight Council (FSOC).
Supervision
In July 2013, the Fed, the FDIC and the OCC released final capital
rules that overhaul the existing US bank regulatory capital rules
and implement the Basel III framework and certain provisions of
the Dodd-Frank Act. The final rules are largely consistent with the
Basel III framework published by the qBasel Committee on Bank-
ing Supervision (BCBS), although they diverge in several important
respects due to requirements of the Dodd-Frank Act and do not
address other, more recent aspects of the Basel III framework. On
September 3, 2014, the Fed, the OCC and the FDIC issued a final
rule to introduce the Basel III q liquidity coverage ratio (LCR) in
the US, applicable to certain large US banking organizations. The
final US LCR rule is generally consistent with the LCR published
by the BCBS in January 2013, but it is stricter in certain respects
and would be phased in between January 1, 2015 and January
1, 2017. In future separate rulemakings, the Fed may apply the
US LCR requirement to the US operations of certain large foreign
banking organizations.
The Dodd-Frank Act also provides regulators with tools to
adopt more stringent risk-based capital, leverage and liquidity
requirements and other prudential standards, particularly for larger,
relatively complex financial institutions. In February 2014, the
Fed adopted a rule under the Dodd-Frank Act that creates a new
framework for regulation of the US operations of foreign banking
organizations. The rule generally requires Credit Suisse to create
a single US intermediate holding company (IHC) to hold all of its
US subsidiaries with limited exceptions; this requirement will not
apply to Credit Suisse AG’s New York branch (New York Branch),
but it will apply to other Credit Suisse US entities. The IHC will
be subject to local risk-based capital and leverage requirements.
In addition, both the IHC itself and the combined US operations
of Credit Suisse (including the IHC and the New York Branch)
will be subjected to other new prudential requirements, including
with respect to liquidity risk management, separate liquidity buf-
fers for each of the IHC and the New York Branch, stress testing,

30
and other prudential standards. The new framework’s prudential
requirements generally become effective in July 2016. Under pro-
posals that remain under consideration, the IHC and the combined
US operations of Credit Suisse would become subject to limits on
credit exposures to any single counterparty, and the combined US
operations of Credit Suisse would also become subject to an early
remediation regime which could be triggered by risk-based capital,
leverage, stress tests, liquidity, risk management and market indi-
cators. On January 1, 2015, Credit Suisse filed an IHC implemen-
tation plan with the Fed that sets forth Credit Suisse’s approach to
come into compliance with the IHC requirements by the July 2016
deadline.
On August 5, 2014, the Fed and the FDIC announced the
completion of their review of our 2013 US resolution plan and the
2013 plans of the 10 other “first wave” filers. The Fed and FDIC
released a joint statement indicating that the Fed and FDIC had
identified shortcomings in the plans and that the Fed and FDIC
expect “first wave” filers, including us, to demonstrate that they are
making significant progress to address those shortcomings in their
2015 resolutions plans, due July 1, 2015. We are reviewing the
specific comments the Fed and FDIC have provided on our 2013
plan, and we intend to work with the Fed and FDIC to identify
appropriate actions to address them.
III – Treasury, Risk, Balance sheet and Off-balance sheet for further information
regarding our current regulatory framework and expected changes to this frame-
work affecting capital and liquidity standards.
On December 10, 2013, US regulators released the final version
of the so-called “Volcker Rule”, which limits the ability of bank-
ing entities to sponsor or invest in certain private equity or hedge
funds and to engage in certain types of proprietary trading. Com-
pliance with the Volcker Rule is currently required by July 21, 2015,
although the Fed has extended the compliance deadline to July 21,
2016 for investments in and relationships with private equity and
hedge funds that were in place prior to December 31, 2013 and
has indicated its intention to further extend the conformance dead-
line for such legacy investments and relationships until July 21,
2017. We continue to analyze the final rule and the Fed’s exten-
sion order and assess how they affect our businesses, and are
conducting an implementation program to come into compliance.
On March 22, 2013, the OCC, the Fed, and the FDIC jointly
issued supervisory guidance on leveraged lending (Guidance). The
goals of the Guidance include helping financial institutions properly
evaluate and monitor underwritten credit risks in leveraged loans,
understand the effect of changes in borrowers’ enterprise values
on credit portfolio quality, assess the sensitivity of future credit
losses to changes in enterprise values, and to strengthen their
risk management frameworks so that leveraged lending activi-
ties do not heighten risk in the banking system or the broader
financial system. The Guidance generally applies to all banking
organizations supervised by the OCC, FDIC and Fed, including
national and state-chartered banks, savings associations, bank
holding companies, and the US branches and agencies of foreign
banks, including Credit Suisse. On November 7, 2014, the same
agencies issued a frequently asked questions document regard-
ing the applicability and implementation of the Guidance indicating
that the standards for underwriting and arranging loan transactions
that can be classified as leveraged lending may receive increased
scrutiny. This heightened standard of scrutiny is negatively impact-
ing Credit Suisse’s ability to underwrite and originate leveraged
lending transactions.
On January 16, 22 and 27, 2014, specified types of interest rate
swaps and index qCDS were deemed “made available to trade”
by CFTC-registered swap execution facilities (SEFs). As a result,
since February 15, 21 and 26, 2014, those types of swaps have
been required to be executed on a SEF or designated contract
market, unless an exception or exemption applies.
On June 25, 2014, the SEC adopted final rules addressing the
cross-border application of the Dodd-Frank Act’s “security-based
swap dealer” and “major security-based swap participant” defini-
tions. While the rules do not impose any affirmative compliance
requirements, they include the “US person” definition and certain
other key elements of the SEC’s framework for when the Dodd-
Frank Act’s security-based swap reforms apply to non-US dealers,
such as Credit Suisse. In many respects, the SEC’s rules are simi-
lar to parallel guidance issued by the CFTC in July 2013. However,
the SEC did not address the treatment of swaps between a non-
US dealer and non-US counterparty that involve US personnel,
an issue of particular importance to Credit Suisse. As a result, the
overall impact of the SEC’s security-based swap reforms on Credit
Suisse continues to depend on future SEC rulemakings. In addi-
tion, the SEC’s implementation of the derivatives provisions of the
Dodd-Frank Act is expected to continue during 2015. On February
11, 2015, the SEC published the texts of two final rules and one
proposed rule relating to the reporting and public dissemination of
security-based swap (SBS) transaction data. These rules create a
reporting regime for SBS that is generally similar to the reporting
regime that the CFTC has already created for swaps pursuant to
requirements in the Dodd-Frank Act. In certain areas, however,
differences between the SEC’s and CFTC’s reporting rules could
result in additional implementation costs. Also, the SEC has not
yet finalized key aspects of its SBS reporting regime, such as the
treatment of block trades, cleared transactions and certain cross-
border issues. Compliance with the SBS reporting rules by Credit
Suisse will not be required until after the SEC adopts final compli-
ance dates and the first SBS data repositories are registered with
the SEC, which may not occur until 2016.
On September 3, 2014, US banking regulators re-proposed
margin rules for non-cleared swaps and security-based swaps
entered into by swap dealers, security-based swap dealers, major
swap participants and major security-based swap participants that
are banks. On September 18, 2014, the CFTC likewise re-pro-
posed margin rules for non-cleared swaps entered into by swap
dealers and major swap participants that are not banks. Under the
re-proposals, Credit Suisse International (CSI) and Credit Suisse
Securities (Europe) Limited (CSSEL), which have registered with

the CFTC as swap dealers, would be required to collect and post
initial and variation margin for non-cleared swaps and security-
based swaps with US counterparties and prohibited from re-using
initial margin. These margin requirements would be significantly
higher than current market practice, which could adversely affect
CSI’s and CSSEL’s derivatives sales and trading businesses by
increasing the cost of and reducing demand for non-cleared
swaps and security-based swaps. While the two re-proposals are
intended to align with a framework recently established by the
BCBS and the International Organization of Securities Commis-
sions and a recent proposal by European supervisory agencies,
differences in the scope of products and entities covered by the
various proposals could impair the ability of CSI and CSSEL to
engage effectively in cross-border derivatives activities. The re-
proposals also would apply margin requirements to many inter-
affiliate transactions, which could prevent CSI and CSSEL from
engaging in certain risk management activities. The two re-pro-
posals would follow a phased implementation schedule, with (i)
variation margin requirements coming into effect on December 1,
2015, and (ii) initial margin requirements phasing in annually for
different counterparties from December 1, 2015 until December 1,
2019, depending on the transactional volume of the counterparty
and its affiliates during the preceding June, July and August.
On September 16, 2014, the US District Court for the Dis-
trict of Columbia ruled against a lawsuit brought by several US
financial trade associations challenging July 2013 guidance by the
CFTC regarding the cross-border application of its rules to swap
dealers, such as CSI and CSSEL. Under the court’s ruling, the
CFTC’s rules and guidance remain in effect, but the court directed
the CFTC to conduct a cost-benefit analysis of some of the rules
covered by the guidance. The court indicated that it did not expect
this cost-benefit analysis to alter how the CFTC applies its rules.
Therefore, significant changes to the CFTC’s cross-border frame-
work are not anticipated to result from the lawsuit. Nevertheless,
the CFTC has received and is considering industry comments on
certain aspects of the cross-border guidance that was the subject
of the lawsuit and may yet modify the guidance.
On November 14, 2014, CFTC issued a no-action letter that
extends from December 31, 2014 until September 30, 2015 the
expiration date for relief from a staff advisory stating that CFTC
“transaction-level” requirements, such as mandatory clearing,
mandatory exchange trading, real-time public reporting and exter-
nal business conduct, apply to a swap between a non-US swap
dealer, such as CSI or CSSEL, and another non-US person if
the swap is arranged, negotiated or executed by US personnel or
agents of the non-US swap dealer.
On November 24, 2014, the CFTC issued a no-action letter
that extends from December 1, 2014 until December 1, 2015 the
expiration date for relief from a requirement that certain non-US
swap dealers, including CSI and CSSEL, report information about
their swaps with non-US counterparties to a US data repository.
Expiration of this relief without modifications to the CFTC’s guid-
ance and without permitting substituted compliance with the EMIR
reporting rules could reduce the willingness of non-US coun-
terparties to trade with CSI and CSSEL, which could negatively
affect our swap trading revenue or necessitate changes to how we
organize our swap business. We continue to monitor these devel-
opments and prepare contingency plans to comply with the final
guidance once effective.
Securitization
On October 21 and 22, 2014, US federal regulators adopted a
joint final rule requiring sponsors of asset-backed securitization
transactions to retain 5% of the credit risk of the assets subject
of the securitization. The final rule will take effect (i) for qRMBS
transactions, on December 24, 2015 and (ii) for other securitiza-
tion transactions, on December 24, 2016. The specific impact of
the final rule on different ABS markets is uncertain and will vary,
and certain ABS markets may result in fewer issuances or reduced
liquidity, or both, and there may in certain markets be an impact on
the assets acquired by securitizations.
EU
The EU, the UK and other national European jurisdictions have
also proposed and enacted a wide range of prudential, securities
and governance regulations to address systemic risk and to further
regulate financial institutions, products and markets. These pro-
posals are at various stages of the EU pre-legislative, legislative
and rule making processes, and their final form and cumulative
impact remain uncertain.
Supervision
With effect from January 1, 2014, the Capital Requirement
Directive IV and Capital Requirements Regulation (CRD IV) has
replaced the previous CRD with new measures implementing
Basel III and other requirements. Compliance with these require-
ments will include receiving approval by the UK’s Prudential Regu-
lation Authority (PRA) of certain models with respect to regulatory
capital requirements of our UK subsidiaries.
On January 29, 2014, the European Commission (EC) pub-
lished a draft Regulation on Structural Measures Improving the
Resilience of EU Banks and Transparency of the Financial Sec-
tor which, if enacted, would introduce certain structural measures
designed to reduce the risk and complexity of large banks in the EU.
It is proposed that the measures would apply to EU banks which
qualify as global systemically important institutions, or which have
for a period of three consecutive years (i) total assets of at least
EUR 30 billion, and (ii) trading activities amounting to at least EUR
70 billion or 10% of their total assets. These banks would be pro-
hibited from engaging in proprietary trading in financial instruments
and commodities and would become subject to anti-avoidance rules
prohibiting certain transactions with the shadow banking sector. In
addition, they may be required by their regulator to separate certain
trading activities involving increased risks from their deposit-taking,
lending and other business activities. The final text of the draft regu-
lation is not expected to be adopted before June 2015.

32
On July 22, 2013, the Alternative Investment Fund Managers
Directive (AIFMD) entered into effect. The AIFMD establishes a
comprehensive regulatory and supervisory framework for alterna-
tive investment fund managers (AIFMs) managing and/or mar-
keting alternative investment funds (AIFs) in the EU. The AIFMD
imposes various substantive requirements to authorized AIFMs,
including increased transparency towards investors and regulators,
and allows authorized AIFMs to market AIFs to professional inves-
tors throughout the EU under an “EU passport”. The EU pass-
port has been made available to authorized EU AIFMs since July
2013 and, subject to European Securities and Markets Authority’s
(ESMA) and EC’s positive opinion, is expected to be made avail-
able to authorized non-EU AIFMs from late 2015. In the meantime
(and until at least 2018), non-EU AIFMs may continue to market
within the EU under the private placement regimes of the indi-
vidual member states subject to complying with certain minimum
requirements imposed by the AIFMD and any additional require-
ments that individual member states may impose. The AIFMD also
imposes a new, strict depositary regime affecting the manner in
which prime brokers may provide custody services to fund man-
agers. Although many member states have now implemented the
AIFMD, a number of member states did not meet the transposition
deadline of July 22, 2013. As clarified by ESMA, for EU AIFMs
authorized under the AIFMD in a member state that has trans-
posed the AIFMD, the passport system should be available even in
a member state that has not transposed the AIFMD into national
law. EU AIFMs established in EU member states that have not yet
transposed the AIFMD cannot rely on the marketing and manage-
ment passport in other member states. In December 2014, ESMA
launched a consultation seeking views on the functioning of the
AIFMD passporting regime applicable to EU AIFMs and on the
functioning of the national private placement regimes applicable
to non-EU AIFMs and non-EU AIFs. This consultation will enable
ESMA to determine whether or not to extend the AIFMD passport-
ing regime to non-EU AIFMs and non-EU AIFs.
In March 2013, certain of the requirements of EMIR came into
effect while others will be phased in. EMIR requires that cer-
tain standardized OTC derivatives contracts be centrally cleared
and, where OTC transactions are not subject to central clearing,
specified techniques are employed to monitor, measure and miti-
gate the operational and counterparty risks presented by those
transactions. These risk mitigation techniques include trade con-
firmation, robust portfolio reconciliation and portfolio compression
processes, exchange of initial and variation margins, and the daily
mark-to-market valuation of trades. From February 12, 2014, EU
counterparties subject to EMIR are required to report any deriva-
tive contract to a trade repository that is authorized or recognized
under EMIR. ESMA submitted final draft regulatory technical stan-
dards for central clearing of interest rate swaps to the EC in Octo-
ber 2014 and the EC indicated that it will endorse those regulatory
technical standards subject to certain amendments which are not
supported by ESMA. It is expected that the first clearing obliga-
tions will take effect during the course of 2015.
A central counterparty (CCP) established in a third country
may apply to ESMA for recognition to provide clearing services in
the EU. In order for the CCP to be recognized by ESMA, the EC
must have determined the third country’s regulatory and supervi-
sory arrangements for CCPs, and the third country’s recognition
regime of CCPs authorized out of its jurisdiction, to be equiva-
lent to the requirements laid down in EMIR. The effect of being
deemed “equivalent” is that the third country CCPs will be deemed
to have fulfilled the requirements of EMIR by applying the provi-
sions of the equivalent third country regime. The EC adopted first
positive equivalence decisions for the regulatory regimes for CCPs
in Australia, Hong Kong, Japan and Singapore on October 30,
2014.
Market abuse
On April 14, 2014, the Market Abuse Directive II legislative pack-
age was formally adopted by the Council of the EU. This legisla-
tive package includes the Market Abuse Regulation (MAR) and
the Directive on Criminal Sanctions for Insider Dealing and Mar-
ket Manipulation (CSMAD). MAR will replace the existing Market
Abuse Directive, and will be complemented by CSMAD, which
introduces minimum rules on criminal offenses and criminal sanc-
tions for market abuse. MAR proposals include measures to
extend the market abuse regime to new markets such as multi-
lateral trading facilities, organized trading facilities and over-the-
counter (OTC) financial instruments. It also extends the market
abuse regime to spot commodity contracts related to derivative
transactions. The legislative package applies from July 3, 2016.
Tax
In January 2013, a group of eleven EU member states (Belgium,
Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal,
Slovenia and Slovakia) proposed to adopt a financial transaction
tax (FTT) applicable only for those countries under an enhanced
cooperation scheme, as a proposed EU wide FTT was unsuccess-
ful. If approved in the proposed form, the tax would apply to a wide
range of financial transactions, including minimum rates of 0.01%
for derivative products and 0.1% for other financial instruments.
The tax would apply to certain financial transactions where at least
one party is a financial institution, and at least one party is estab-
lished in a participating member state. A financial institution may
be, or be deemed to be, “established” in a participating member
state in a broad range of circumstances, including (a) by transact-
ing with a person established in a participating member state or
(b) where the relevant financial instrument is issued in a participat-
ing member state. To become effective, the proposed FTT direc-
tive will require unanimous agreement of at least nine participating
member states. In May 2014, a joint statement by ministers of the
participating member states (excluding Slovenia) proposed “pro-
gressive implementation” of the FTT, with the initial form applying
the tax only to transactions in shares and some derivatives. The

FTT proposal remains subject to negotiation among the participat-
ing member states and has been the subject of legal challenge.
It may therefore be altered significantly prior to any implementa-
tion, the timing of which remains unclear. Where a participating
member state already has a financial transaction tax in place, such
as France and Italy, the FTT would be expected to replace those
existing national FTT regimes. January 1, 2016 is the target dead-
line for implementation, with further rollout in 2017, although it may
be operationally difficult for the first taxes to be collected prior to
2019. If the FTT is implemented as proposed, certain transactions
carried out by Credit Suisse institutions in participating member
states, or by Credit Suisse entities with a party established in a
participating member state, will be subject to the tax.
Regulatory framework
The principal regulatory structures that apply to our operations are
discussed below.
Switzerland
Banking regulation and supervision
Although Credit Suisse Group is not a bank according to the Bank
Law and the Banking Ordinance, the Group is required, pursuant
to the provisions on consolidated supervision of financial groups
and conglomerates of the Bank Law, to comply with certain
requirements for banks. Such requirements include capital ade-
quacy, solvency and risk concentration on a consolidated basis,
and certain reporting obligations. Our banks in Switzerland are
regulated by qFINMA on a legal entity basis and, if applicable, on
a consolidated basis.
Our banks in Switzerland operate under banking licenses
granted by FINMA pursuant to the Bank Law and the Banking
Ordinance. In addition, certain of these banks hold securities
dealer licenses granted by FINMA pursuant to the SESTA.
FINMA is the sole bank supervisory authority in Switzerland
and is independent from the Swiss National Bank (SNB). Under
the Bank Law, FINMA is responsible for the supervision of the
Swiss banking system. The SNB is responsible for implementing
the government’s monetary policy relating to banks and securities
dealers and for ensuring the stability of the financial system. Under
the q“Too Big to Fail” legislation, the SNB is also responsible for
determining which banks in Switzerland are systemically relevant
banks and which functions are systemically relevant in Switzerland.
The SNB has identified the Group as a systemically relevant bank.
Our banks in Switzerland are subject to close and continu-
ous prudential supervision and direct audits by FINMA. Under
the Bank Law, our banks are subject to inspection and supervi-
sion by an independent auditing firm recognized by FINMA, which
is appointed by the bank’s shareholder meeting and required to
perform annual audits of the bank’s financial statements and to
assess whether the bank is in compliance with laws and regula-
tions, including the Bank Law, the Banking Ordinance and FINMA
regulations.
Swiss banks are subject to the qBasel III framework and the
Swiss ”Too Big to Fail” legislation and regulations thereunder, which
include capital, liquidity, leverage and large exposure requirements,
and rule for emergency plans designed to maintain systemically
relevant functions in the event of threatened insolvency.
Swiss banks are also required to maintain a specified liquidity
standard pursuant to the Liquidity Ordinance (Liquidity Ordinance),
which was adopted by the Swiss Federal Council in November
2012 and implements Basel III liquidity requirements into Swiss
law subject, in part, to further rule-making. The Liquidity Ordi-
nance entered into force on January 1, 2013. It requires appropri-
ate management and monitoring of liquidity risks, and applies to all
banks, but is tiered according to the type, complexity and degree
of risk of a bank’s activities. It also contains supplementary quanti-
tative and qualitative requirements for systemically relevant banks,
including us, which are generally consistent with existing FINMA
liquidity requirements. In January 2014, the Swiss Federal Council
and FINMA proposed revisions to the Liquidity Ordinance to reflect
the final Basel III qLCR rules. These revisions have been adopted
by the Swiss Federal Council on June 25, 2014 and entered into
effect on January 1, 2015. Under the revised Liquidity Ordinance,
systemically relevant banks like us are subject to an initial minimum
LCR requirement of 100% beginning in 2015.
Our regulatory capital is calculated on the basis of accounting
principles generally accepted in the US, with certain adjustments
required by, or agreed with, FINMA.
III – Treasury, Risk, Balance sheet and Off-balance sheet for further information
regarding our current regulatory framework and expected changes to this frame-
work affecting capital and liquidity standards.
Under Swiss banking law, banks and securities dealers are
required to manage risk concentration within specific limits. Aggre-
gated credit exposure to any single counterparty or a group of
related counterparties must bear an adequate relationship to the
bank’s adjusted eligible capital (for systemically relevant banks like
us, to their core tier 1 capital) taking into account counterparty
risks and qrisk mitigation instruments.
Under the Bank Law and SESTA, Swiss banks and securities
dealers are obligated to keep confidential the existence and all
aspects of their relationships with customers. These customer con-
fidentiality laws do not, however, provide protection with respect to
criminal offenses such as insider trading, money laundering, terror-
ist financing activities, tax fraud or evasion or prevent the disclo-
sure of information to courts and administrative authorities.
Swiss rules and regulations to combat money laundering and
terrorist financing are comprehensive and require banks and other
financial intermediaries to thoroughly verify and document cus-
tomer identity before commencing business. In addition, these
rules and regulations include obligations to maintain appropriate
policies for dealings with politically exposed persons and proce-
dures and controls to detect and prevent money laundering and
terrorist financing activities, including reporting suspicious activities
to authorities.
Since January 1, 2010, compensation design and its imple-
mentation and disclosure must comply with standards promulgated
by FINMA under its Circular on Remuneration Schemes.

34
Securities dealer and asset management regulation and
supervision
Our securities dealer activities in Switzerland are conducted
primarily through the Bank and are subject to regulation under
SESTA, which regulates all aspects of the securities dealer busi-
ness in Switzerland, including regulatory capital, risk concentra-
tion, sales and trading practices, record-keeping requirements and
procedures and periodic reporting procedures. Securities dealers
are supervised by FINMA.
Our asset management activities in Switzerland, which include
the establishment and administration of mutual funds registered for
public distribution, are conducted under the supervision of FINMA.
Resolution regime
The Banking Insolvency Ordinance-FINMA (the Banking Insol-
vency Ordinance) governs resolution (i.e., restructuring or liqui-
dation) procedures of Swiss banks and securities dealers, such
as Credit Suisse AG. Instead of prescribing a particular resolu-
tion concept, the Banking Insolvency Ordinance provides FINMA
with a significant amount of authority and discretion in the case of
resolution, as well as various restructuring tools from which FINMA
may choose.
FINMA may open resolution proceedings if there is justified
concern that the relevant Swiss bank is over-indebted, has serious
liquidity problems or no longer fulfills capital adequacy require-
ments. Resolution proceedings may only take the form of restruc-
turing (rather than liquidation) proceedings if (i) the recovery of, or
the continued provision of individual banking services by, the rel-
evant bank appears likely and (ii) the creditors of the relevant bank
are likely better off in restructuring proceedings than in liquidation
proceedings. All realizable assets in the relevant bank’s posses-
sion will be subject to such proceedings, regardless of where they
are located.
If FINMA were to open restructuring proceedings with respect
to Credit Suisse AG, it would have discretion to take decisive
actions, including (i) transferring the bank’s assets or a portion
thereof, together with its debt and other liabilities, or a portion
thereof, and contracts, to another entity, (ii) staying (for a maxi-
mum of 48 hours) the termination of, and the exercise of rights
to terminate relating to, financial contracts to which the bank is a
party, (iii) converting the bank’s debt into equity (a “debt-to-equity
swap”), and/or (iv) partially or fully writing off the bank’s obligations
(a “haircut”).
Prior to any debt-to equity swap or haircut, outstanding equity
capital and debt instruments issued by Credit Suisse AG that are
part of its regulatory capital (including the bank’s outstanding high
trigger capital instruments and low trigger capital instruments)
must be converted or written-off (as applicable) and cancelled.
Any debt-to-equity swap, (but not any haircut) would have to fol-
low the hierarchy of claims to the extent such debt is not excluded
from such conversion by the Banking Insolvency Ordinance. Con-
tingent liabilities of Credit Suisse AG such as guarantees could
also be subjected to a debt-to-equity swap or a haircut to the
extent amounts are due and payable thereunder at any time during
restructuring proceedings. For systemically relevant banks such as
Credit Suisse AG, creditors have no right to reject the restructuring
plan approved by FINMA.
US
Our banking operations are subject to extensive federal and state
regulation and supervision in the US. Our direct US offices are
composed of our New York Branch and representative offices in
California. Each of these offices is licensed with, and subject to
examination and regulation by, the state banking authority in the
state in which it is located.
Our New York Branch is licensed by the New York Superinten-
dent of Financial Services (Superintendent), examined by the New
York State Department of Financial Services, and subject to laws
and regulations applicable to a foreign bank operating a New York
branch. Under the New York Banking Law, our New York Branch
must maintain eligible assets with banks in the state of New York.
The amount of eligible assets required, which is expressed as a
percentage of third-party liabilities, would increase if our New York
Branch is no longer designated well rated by the Superintendent.
The New York Banking Law authorizes the Superintendent to
seize our New York Branch and all of Credit Suisse AG’s business
and property in New York State (which includes property of our
New York Branch, wherever it may be located, and all of Credit
Suisse AG’s property situated in New York State) under circum-
stances generally including violations of law, unsafe or unsound
practices or insolvency. In liquidating or dealing with our New York
Branch’s business after taking possession, the Superintendent
would only accept for payment the claims of depositors and other
creditors (unaffiliated with us) that arose out of transactions with
our New York Branch. After the claims of those creditors were
paid out of the business and property of the Bank in New York, the
Superintendent would turn over the remaining assets, if any, to us
or our liquidator or receiver.
Under New York Banking Law and US federal banking laws,
our New York Branch is generally subject to single borrower
lending limits expressed as a percentage of the worldwide capi-
tal of the Bank. Under the Dodd-Frank Act, lending limits take
into account credit exposure arising from derivative transactions,
securities borrowing and lending transactions and repurchase and
reverse repurchase agreements with counterparties.
Our operations are also subject to reporting and examination
requirements under US federal banking laws. Our US non-banking
operations are subject to examination by the Fed in its capacity
as our US umbrella supervisor. The New York Branch is also sub-
ject to examination by the Fed and is subject to Fed requirements
and limitations on the acceptance and maintenance of deposits.
Because the New York Branch does not engage in retail deposit
taking, it is not a member of, and its deposits are not insured by,
the FDIC.
US federal banking laws provide that a state-licensed branch
(such as the New York Branch) or agency of a foreign bank may
not, as a general matter, engage as principal in any type of activity

that is not permissible for a federally licensed branch or agency of
a foreign bank unless the Fed has determined that such activity
is consistent with sound banking practice. In addition, regulations
which the FSOC and the Fed may adopt could affect the nature
of the activities which the Bank (including the New York Branch)
may conduct, and may impose restrictions and limitations on the
conduct of such activities.
The Fed may terminate the activities of a US branch or agency
of a foreign bank if it finds that the foreign bank: (i) is not subject
to comprehensive supervision in its home country; (ii) has violated
the law or engaged in an unsafe or unsound banking practice in
the US; or (iii) for a foreign bank that presents a risk to the stability
of the US financial system, the home country of the foreign bank
has not adopted, or made demonstrable progress toward adopting,
an appropriate system of financial regulation to mitigate such risk.
A major focus of US policy and regulation relating to financial
institutions has been to combat money laundering and terrorist
financing. These laws and regulations impose obligations to main-
tain appropriate policies, procedures and controls to detect, pre-
vent and report money laundering and terrorist financing, verify the
identity of customers and comply with economic sanctions. Any
failure to maintain and implement adequate programs to combat
money laundering and terrorist financing, and violations of such
economic sanctions, laws and regulations, could have serious legal
and reputational consequences. We take our obligations to prevent
money laundering and terrorist financing in the US and globally
very seriously, while appropriately respecting and protecting the
confidentiality of clients. We have policies, procedures and train-
ing intended to ensure that our employees comply with “know your
customer” regulations and understand when a client relationship or
business should be evaluated as higher risk for us.
Credit Suisse Group and the Bank became financial holding
companies for purposes of US federal banking law in 2000 and,
as a result, may engage in a broad range of non-banking activities
in the US, including insurance, securities, private equity and other
financial activities, in each case subject to regulatory requirements
and limitations. Credit Suisse Group is still required to obtain the
prior approval of the Fed (and potentially other US banking regula-
tors) before acquiring, directly or indirectly, the ownership or con-
trol of more than 5% of any class of voting shares of (or otherwise
controlling) any US bank, bank holding company or many other
US depositary institutions and their holding companies, and as a
result of the Dodd-Frank Act, before making certain acquisitions
involving large non-bank companies. The New York Branch is also
restricted from engaging in certain tying arrangements involving
products and services, and in certain transactions with certain of
its affiliates. If Credit Suisse Group or the Bank ceases to be well-
capitalized or well-managed under applicable Fed rules, or oth-
erwise fails to meet any of the requirements for financial holding
company status, it may be required to discontinue certain financial
activities or terminate its New York Branch. Credit Suisse Group’s
ability to undertake acquisitions permitted by financial holding
companies could also be adversely affected.
The Dodd-Frank Act requires issuers with listed securities to
establish a claw-back policy to recoup erroneously awarded com-
pensation in the event of an accounting restatement, although it
is currently unclear if this requirement will apply to foreign private
issuers, like the Group.
Broker-dealer and asset management regulation and
supervision
Our US broker-dealers are subject to extensive regulation by US
regulatory authorities. The SEC is the federal agency primarily
responsible for the regulation of broker-dealers, investment advis-
ers and investment companies. In addition, the US Treasury has
the authority to promulgate rules relating to US Treasury and gov-
ernment agency securities, the Municipal Securities Rulemaking
Board (MSRB) has the authority to promulgate rules relating to
municipal securities, and the MSRB also promulgates regulations
applicable to certain securities credit transactions. In addition, bro-
ker-dealers are subject to regulation by securities industry self-
regulatory organizations, including the Financial Industry Regula-
tory Authority (FINRA), and by state securities authorities.
Our US broker-dealers are registered with the SEC and our
primary US broker-dealer is registered in all 50 states, the District
of Columbia, Puerto Rico and the US Virgin Islands. Our US reg-
istered entities are subject to extensive regulatory requirements
that apply to all aspects of their business activity, including where
applicable: capital requirements; the use and safekeeping of cus-
tomer funds and securities; the suitability of customer investments;
record-keeping and reporting requirements; employee-related
matters; limitations on extensions of credit in securities transac-
tions; prevention and detection of money laundering and terrorist
financing; procedures relating to research analyst independence;
procedures for the clearance and settlement of trades; and com-
munications with the public.
Our US broker-dealers are also subject to the SEC’s net capi-
tal rule, which requires broker-dealers to maintain a specified level
of minimum net capital in relatively liquid form. Compliance with
the net capital rule could limit operations that require intensive
use of capital, such as underwriting and trading activities and the
financing of customer account balances and also could restrict our
ability to withdraw capital from our broker-dealers. Our US broker-
dealers are also subject to the net capital requirements of FINRA
and, in some cases, other self-regulatory organizations.
Our securities and asset management businesses include legal
entities registered and regulated as a broker-dealer and invest-
ment adviser by the SEC. The SEC-registered mutual funds that
we advise are subject to the Investment Company Act of 1940.
For pension fund customers, we are subject to the Employee
Retirement Income Security Act of 1974 and similar state statutes.
The Dodd-Frank Act grants the SEC discretionary rule-making
authority to impose a new fiduciary standard on brokers, dealers
and investment advisers and expands the extraterritorial jurisdic-
tion of US courts over actions brought by the SEC or the US with
respect to violations of the antifraud provisions in the Securities

36
Act of 1933, Securities Exchange Act of 1934 and Investment
Advisers Act of 1940. It also requires broader regulation of hedge
funds and private equity funds, as well as credit rating agencies.
Derivative regulation and supervision
The CFTC is the federal agency primarily responsible for the regu-
lation of futures commission merchants, commodity pool opera-
tors and commodity trading advisors. With the effectiveness of
the Dodd-Frank Act, these CFTC registration categories have
been expanded to include persons engaging in a relevant activity
with respect to swaps, and new registration categories have been
added for swap dealers and major swap participants. For futures
and swap activities, these CFTC registrants are subject to futures
industry self-regulatory organizations such as the National Futures
Association (NFA).
Each of CSI and CSSEL is registered with the CFTC as a
swap dealer as a result of its swap activities with US persons and
is therefore subject to requirements relating to reporting, record-
keeping, swap confirmation, swap portfolio reconciliation and com-
pression, mandatory clearing, mandatory exchange-trading, swap
trading relationship documentation, external business conduct,
risk management, chief compliance officer duties and reports and
internal controls. It is anticipated that the CFTC will in 2015 finalize
rules related to capital and margin requirements and position limits,
as well as potentially expand the scope of its mandatory clearing
and exchange-trading requirements to cover certain types of for-
eign exchange transactions.
One of our US broker-dealers, Credit Suisse Securities (USA)
LLC, is also registered as a futures commission merchant and
subject to the capital, segregation and other requirements of the
CFTC and the NFA.
Our asset management businesses include legal entities regis-
tered and regulated as commodity pool operators and commodity
trading advisors by the CFTC and the NFA.
In addition, we expect the SEC to finalize some of its rules
implementing the derivatives provisions of the Dodd-Frank Act
during 2015. While the SEC’s proposals have largely paralleled
many of the CFTC’s rules, significant differences between the final
CFTC and SEC rules could materially increase the compliance
costs associated with, and hinder the efficiency of, our equity and
credit derivatives businesses with US persons. In particular, sig-
nificant differences between the SEC rules regarding capital, mar-
gin and segregation requirements for OTC derivatives and related
CFTC rules, as well as the cross-border application of SEC and
CFTC rules, could have such effects.
FATCA
FATCA became law in the US on March 18, 2010. The legisla-
tion requires Foreign Financial Institutions (FFIs) (such as Credit
Suisse) to enter into an FFI agreement and agree to identify and
provide the US Internal Revenue Service (IRS) with information on
accounts held by US persons and certain US-owned foreign enti-
ties, or otherwise face 30% withholding tax on withholdable pay-
ments. In addition, FFIs that have entered into an FFI agreement
will be required to withhold on such payments made to FFIs that
have not entered into an FFI agreement, account holders who fail
to provide sufficient information to classify an account as a US or
non-US account, and US account holders who do not agree to
the FFI reporting their account to the IRS. Switzerland and the US
entered into a “Model 2” intergovernmental agreement to imple-
ment the reporting and withholding tax provisions of FATCA that
became effective on June 2, 2014. FATCA requirements entered
into force on July 1, 2014. The intergovernmental agreement
enables FFIs in Switzerland to comply with FATCA while remaining
in compliance with Swiss law. Under the agreement, US authori-
ties may ask Swiss authorities for administrative assistance in con-
nection with group requests where consent to provide informa-
tion regarding potential US accounts is not provided to the FFI.
The Swiss Federal Council announced on October 8, 2014 that
it intends to negotiate a Model 1 intergovernmental agreement
that would replace the existing agreement, and that would instead
require FFIs in Switzerland to report US accounts to the Swiss
authorities, with an automatic exchange of information between
Swiss and US authorities. Complying with the required identifi-
cation, withholding and reporting obligations requires significant
investment in an FFI’s compliance and reporting framework. We
are continuing to follow developments regarding FATCA closely
and are coordinating with all relevant authorities.
Resolution regime
The Dodd-Frank Act also establishes an “Orderly Liquidation
Authority”, a new regime for the orderly liquidation of systemically
significant non-bank financial companies, which could potentially
apply to certain of our US entities. To finance a resolution under
this new regime, the FDIC may borrow funds from the US Trea-
sury, which must be repaid from the proceeds of the resolution.
If such proceeds are insufficient to repay the US Treasury in full,
the FDIC is required to assess other large financial institutions,
including those that have USD 50 billion or more in total consoli-
dated assets, such as us, in an amount sufficient to repay all of
the funds borrowed from the US Treasury in connection with the
liquidation under the Orderly Liquidation Authority. In addition, in
2011 the Fed and the FDIC approved final rules to implement the
resolution plan requirement in the Dodd-Frank Act, which require
bank holding companies with total consolidated assets of USD
50 billion or more, such as us, and certain designated non-bank
financial firms to submit annually to the Fed and the FDIC reso-
lution plans describing the strategy for rapid and orderly resolu-
tion under the US Bankruptcy Code or other applicable insolvency
regimes, though such plans may not rely on the Orderly Liquidation
Authority.
EU
Financial services regulation and supervision
Since it was announced in 1999, the EU’s Financial Services
Action Plan has given rise to numerous measures (both directives
and regulations) aimed at increasing integration and harmonization
in the European market for financial services. While regulations

have immediate and direct effect in member states, directives
must be implemented through national legislation. As a result, the
terms of implementation of directives are not always consistent
from country to country. In response to the financial crisis and in
order to strengthen European supervisory arrangements, the EU
established the European Systemic Risk Board, which has macro-
prudential oversight of the financial system. The EU has also
established three supervisory authorities responsible for promoting
greater harmonization and consistent application of EU legislation
by national regulators: the European Banking Authority, the Euro-
pean Securities and Markets Authority and the European Insur-
ance and Occupational Pensions Authority.
The CRD IV came into force on January 1, 2014. The CRD IV
implemented in various EU countries, including the UK, the Basel
III capital framework for banking groups operating in the EU. The
CRD IV wholly replaced the current Capital Requirements Direc-
tive, which implemented the Basel II capital framework. The CRD
IV creates a single harmonized prudential rule book for banks,
introduces new corporate governance and certain new remunera-
tion requirements, including a cap on variable remuneration, and
enhances the powers of regulators.
The existing Markets in Financial Instruments Directive (MiFID
I) establishes high-level organizational and business conduct stan-
dards that apply to all investment firms. These include standards
for managing conflicts of interest, best execution, enhanced inves-
tor protection, including client classification, and the requirement
to assess suitability and appropriateness in providing investment
services to clients. MiFID I sets standards for regulated markets
(i.e., exchanges) and multilateral trading facilities, and sets out pre-
trade and post-trade price transparency requirements for equity
trading. MiFID I also sets standards for the disclosure of fees and
other payments received from or paid to third parties in relation to
investment advice and services and regulates investment services
relating to commodity derivatives. In relation to these and other
EU-based investment services and activities, MiFID I introduced a
“passport” for investment firms, enabling them to conduct cross-
border activities and establish branches throughout the EU on the
basis of authorization from their home state regulator. MiFID I will
be significantly reformed by MiFID II and the Markets in Financial
Instruments Regulation (MIFIR), which entered into force on July
2, 2014 and will apply as from January 3, 2017, with a few excep-
tions. Such changes include the creation of a new category of
trading venue, that is, the organized trading facility; measures to
direct more trading onto regulated trading venues such as regu-
lated markets, multilateral trading facilities and organized trading
facilities; and an extension of pre and post-trade reporting require-
ments to a wide range of equity, fixed income and derivative finan-
cial instruments. There will also be new safeguards introduced
for high frequency and algorithmic trading activities, requiring
the authorization of firms engaging in such trading activities and
the proper supervision of high frequency and algorithmic traders.
These safeguards are intended to guard against the significant
market distortion that high frequency and algorithmic trading could
bring about. ESMA provided technical advice to the EC on MiFID
II and MIFIR in December 2014 and is expected to publish final
regulatory technical standards by mid-2015.
The Single Supervisory Mechanism Framework Regulation
has entered into force and it empowers the European Central
Bank (ECB) to act as a single supervisor for banks in the 17 euro-
zone countries and for certain non-eurozone countries which may
choose to participate in the Single Supervisory Mechanism. The
ECB assumed its prudential supervisory duties on November 4,
2014.
Resolution regime
The BRRD, which entered into force on July 2, 2014, establishes
a framework for the recovery and resolution of credit institutions
and investment firms. The Directive introduces requirements for
recovery and resolution plans, sets out a new suite of bank resolu-
tion tools, including bail-in, and establishes country specific bank
resolution financing arrangements. The BRRD also requires banks
to hold a certain amount of bail-inable debt at both individual and
consolidated levels from 2016. The deadline for transposing the
directive into member states’ law and regulation was December
31, 2014 and national authorities were obligated to apply the provi-
sions of the BRRD (with the exception of the bail-in tool) by Janu-
ary 1, 2015.
The BRRD applies to all Credit Suisse EU entities, including
branches of the Bank. The Single Resolution Mechanism Regu-
lation, which came into force on August 19, 2014, establishes a
board to assess the likelihood of bank failure and prepare for bank
resolution. It will apply from January 1, 2016, although certain pro-
visions are already applicable.
UK
The Financial Services Authority (FSA) was the principal statutory
regulator of financial services activity in the UK, deriving its pow-
ers from the Financial Services and Markets Act 2000 (FSMA).
In April 2013, the FSA was replaced by: the PRA, a subsidiary of
the Bank of England, which is responsible for the micro-prudential
regulation of banks and larger investment firms and the Financial
Conduct Authority (FCA), which regulates markets, the conduct of
business of all financial firms, and the prudential regulation of firms
not regulated by the PRA. In addition, the Financial Policy Com-
mittee of the Bank of England was established as responsible for
macro-prudential regulation.
As a member state of the EU, the UK is required to implement
EU directives into national law. The regulatory regime for banks
operating in the UK conforms to required EU standards including
compliance with capital adequacy standards, customer protection
requirements, conduct of business rules and anti-money launder-
ing rules. These standards, requirements and rules are similarly
implemented, under the same directives, throughout the other
member states of the EU in which we operate.
CSI, Credit Suisse (UK) Limited and Credit Suisse AG, London
Branch are authorized to take deposits. We also have a number
of entities authorized to conduct investment business and asset

38
management activities. In deciding whether to grant authorization,
the PRA must first determine whether a firm satisfies the thresh-
old conditions for authorization, which includes suitability and the
requirement for the firm to be fit and proper. In addition to regula-
tion by the PRA, certain wholesale money markets activities are
subject to the Non-Investment Products Code, a voluntary code of
conduct published by the Bank of England which PRA-regulated
firms are expected to follow when conducting wholesale money
market business.
Our London Branch will be required to continue to comply
principally with Swiss home country regulation. However, as a
response to the global financial crisis, the PRA made changes
to its prudential supervision rules in its Handbook of Rules and
Guidance, applying a principle of “self-sufficiency”, such that CSI,
CSSEL and Credit Suisse (UK) Limited are required to maintain
adequate liquidity resources, under the day-to-day supervision of
the entity’s senior management, held in a custodian account in the
name of the entity, unencumbered and attributed to the entity bal-
ance sheet. In addition, the PRA requires CSI, CSSEL and Credit
Suisse (UK) Limited to maintain a minimum capital ratio and to
monitor and report large exposures in accordance with the rules
implementing the CRD.
The PRA has implemented the requirements of CRD IV, which
replaced the current CRD as a whole, and imposed a 1:1 cap on
variable remuneration which can rise to 1:2 with explicit share-
holder approval.
The UK Financial Services Act 2013 (Banking Reform Act),
enacted in December 2013, provides for the creation of a “retail
ring-fence” that will prohibit large retail deposit banks from carry-
ing out a broad range of investment and other banking activities
in the same entity. Secondary legislation to fully implement the
Banking Reform Act is expected to be completed by May 2015.
Banks are expected to be required to comply with the ring-fencing
requirements by 2019. However, it is expected that our Private
Banking & Wealth Management business in the UK may benefit
from the de minimis exemption from the retail ring-fence require-
ments which is anticipated to exclude certain banks that hold core
deposits of below GBP 25 billion. The Banking Reform Act also
introduces certain other reforms, including requirements for pri-
mary loss absorbing capacity in order to facilitate the use of the
new bail-in tool, which is itself introduced by the Banking Reform
Act. The Banking Reform Act will also establish a more stringent
regulatory regime for senior managers and specified risk takers in
a bank or PRA authorized investment firm, as well as create a new
criminal offense for reckless mismanagement leading to the failure
of a firm. The governance rules and the bail-in tool will impact our
UK entities, such as CSI and CSSEL.
Broker-dealer and asset management regulation and
supervision
Our London bank and broker-dealer subsidiaries are authorized
under the FSMA and are subject to regulation by the PRA and
FCA. In addition, our asset management companies are autho-
rized under the FSMA and are subject to regulation by the FCA.
In deciding whether to authorize an investment firm in the UK,
the PRA and FCA will consider the threshold conditions, which
includes suitability and the general requirement for a firm to be fit
and proper. The PRA and FCA are responsible for regulating most
aspects of an investment firm’s business, including its regulatory
capital, sales and trading practices, use and safekeeping of cus-
tomer funds and securities, record-keeping, margin practices and
procedures, registration standards for individuals carrying on cer-
tain functions, anti-money laundering systems and periodic report-
ing and settlement procedures.
Tax
Since January 1, 2011, there has been a UK bank levy attributable
to the UK operations of large banks, with applicable rates varying
over time. In 2014, the UK government considered introducing
changes to how the UK bank levy would be charged from January
1, 2015. However, after various discussions, the UK government
decided not to proceed with the proposed changes to the charging
mechanism.
In the Autumn Statement, the UK Chancellor of the Exchequer
announced on December 3, 2014 that the UK government is con-
sidering introducing a bank loss-relief restriction which may restrict
the extent to which certain Credit Suisse UK entities can use his-
toric losses to offset profits for tax purposes from April 1, 2015.
Resolution regime
The PRA published a consultation paper on the BRRD’s imple-
mentation in the UK in July 2014. This consultation was followed
by a policy statement with a summary of feedback, final rules and
updated supervisory statements issued by the PRA on January
16, 2015. In order to implement the BRRD in the UK, amend-
ments were made to UK primary legislation including the Banking
Act 2009, the Financial Services and Markets Act 2000 and the
Insolvency Act 1986. The majority of these final rules have come
into force. The PRA/FCA’s rules on contractual recognition of
bail-in will come into force on January 1, 2016, although for unse-
cured debt instruments the requirements were implemented on
February 19, 2015.

Risk factors
Risk factors
Our businesses are exposed to a variety of risks that could adversely affect our results of operations and financial
condition, including, among others, those described below.
Liquidity risk
Liquidity, or ready access to funds, is essential to our busi-
nesses, particularly our Investment Banking business. We main-
tain available liquidity to meet our obligations in a stressed liquidity
environment.
u Refer to “Liquidity and funding management” in III – Treasury, Risk, Balance
sheet and Off-balance sheet for information on our liquidity management.
Our liquidity could be impaired if we were unable to access
the capital markets or sell our assets, and we expect our
liquidity costs to increase
Our ability to borrow on a secured or unsecured basis and the cost
of doing so can be affected by increases in interest rates or credit
spreads, the availability of credit, regulatory requirements relat-
ing to liquidity or the market perceptions of risk relating to us or
the banking sector, including our perceived or actual creditworthi-
ness. An inability to obtain financing in the unsecured long-term or
short-term debt capital markets, or to access the secured lending
markets, could have a substantial adverse effect on our liquidity.
In challenging credit markets, our funding costs may increase or
we may be unable to raise funds to support or expand our busi-
nesses, adversely affecting our results of operations. Following
the financial crisis in 2008 and 2009, our costs of liquidity have
been significant and we expect to incur additional costs as a result
of regulatory requirements for increased liquidity and the contin-
ued challenging economic environment in Europe, the US and
elsewhere.
If we are unable to raise needed funds in the capital markets,
we may need to liquidate unencumbered assets to meet our liabili-
ties. In a time of reduced liquidity, we may be unable to sell some
of our assets, or we may need to sell assets at depressed prices,
which in either case could adversely affect our results of opera-
tions and financial condition.
Our businesses rely significantly on our deposit base for
funding
Our businesses benefit from short-term funding sources, includ-
ing primarily demand deposits, inter-bank loans, time deposits
and cash bonds. Although deposits have been, over time, a stable
source of funding, this may not continue. In that case, our liquid-
ity position could be adversely affected and we might be unable
to meet deposit withdrawals on demand or at their contractual
maturity, to repay borrowings as they mature or to fund new loans,
investments and businesses.
Changes in our ratings may adversely affect our business
Ratings are assigned by rating agencies. They may lower, indi-
cate their intention to lower or withdraw their ratings at any time.
The major rating agencies remain focused on the financial ser-
vices industry, particularly on uncertainties as to whether firms
that pose systemic risk would receive government or central bank
support in a financial or credit crisis, and on such firms’ potential
vulnerability to market sentiment and confidence, particularly dur-
ing periods of severe economic stress. For example, in February
2015, Standard & Poor’s lowered its long-term credit ratings of
several European banks, including Credit Suisse Group AG, by
one notch. Any downgrades in our assigned ratings, including in
particular our credit ratings, could increase our borrowing costs,
limit our access to capital markets, increase our cost of capital and
adversely affect the ability of our businesses to sell or market their
products, engage in business transactions – particularly longer-
term and qderivatives transactions – and retain our clients.
Market risk
We may incur significant losses on our trading and
investment activities due to market fluctuations and volatility
Although we continued to strive to reduce our balance sheet and
made significant progress in executing our client-focused, capital-
efficient strategy in 2014, we continue to maintain large trading
and investment positions and hedges in the debt, currency and
equity markets, and in private equity, hedge funds, real estate
and other assets. These positions could be adversely affected
by volatility in financial and other markets, that is, the degree to
which prices fluctuate over a particular period in a particular mar-
ket, regardless of market levels. To the extent that we own assets,
or have net long positions, in any of those markets, a downturn in
those markets could result in losses from a decline in the value
of our net long positions. Conversely, to the extent that we have
sold assets that we do not own or have net short positions in any
of those markets, an upturn in those markets could expose us to
potentially significant losses as we attempt to cover our net short
positions by acquiring assets in a rising market. Market fluctua-
tions, downturns and volatility can adversely affect the qfair value
of our positions and our results of operations. Adverse market or
economic conditions or trends have caused, and in the future may
cause, a significant decline in our net revenues and profitability.
Our businesses are subject to the risk of loss from adverse
market conditions and unfavorable economic, monetary,
political, legal and other developments in the countries we
operate in around the world
As a global financial services company, our businesses are materi-
ally affected by conditions in the financial markets and economic
conditions generally in Europe, the US and elsewhere around the
world. The recovery from the economic crisis of 2008 and 2009

40
continues to be sluggish in several key developed markets. Addi-
tionally, the European sovereign debt crisis, as well as concerns
over US debt levels and the federal budget process that led to the
downgrade of US sovereign debt in 2011 and the temporary shut-
down of many federal governmental operations in 2013, have not
been permanently resolved. Our financial condition and results of
operations could be materially adversely affected if these condi-
tions do not improve, or if they stagnate or worsen. Further, various
countries in which we operate or invest have experienced severe
economic disruptions particular to that country or region, including
extreme currency fluctuations, high inflation, or low or negative
growth, among other negative conditions. Concerns about weak-
nesses in the economic and fiscal condition of certain European
countries continued, especially with regard to how such weak-
nesses might affect other economies as well as financial institu-
tions (including us) which lent funds to or did business with or in
those countries. For example, sanctions have been imposed on
certain individuals and companies in Russia due to the conflict
in the Ukraine. In addition, recent events in Greece have led to
renewed concerns about its economic and financial stability and
the effects that it could have on the eurozone. Continued con-
cern about European economies could cause disruptions in market
conditions in Europe and around the world. Economic disruption
in other countries, even in countries in which we do not currently
conduct business or have operations, could adversely affect our
businesses and results.
Adverse market and economic conditions continue to create
a challenging operating environment for financial services compa-
nies. In particular, the impact of interest and currency exchange
rates, the risk of geopolitical events, fluctuations in commodity
prices, particularly the recent significant decrease in energy prices,
European stagnation and renewed concern over Greece’s position
in the eurozone have affected financial markets and the economy.
In recent years, the low interest rate environment, including cur-
rent negative short-term interest rates in our home market, has
adversely affected our net interest income and the value of our
trading and non-trading fixed income portfolios. In addition, move-
ments in equity markets have affected the value of our trading and
non-trading equity portfolios, while the historical strength of the
Swiss franc has adversely affected our revenues and net income.
Such adverse market or economic conditions may reduce the
number and size of investment banking transactions in which we
provide underwriting, mergers and acquisitions advice or other ser-
vices and, therefore, may adversely affect our financial advisory
and underwriting fees. Such conditions may adversely affect the
types and volumes of securities trades that we execute for cus-
tomers and may adversely affect the net revenues we receive from
commissions and spreads. In addition, several of our businesses
engage in transactions with, or trade in obligations of, govern-
mental entities, including super-national, national, state, provincial,
municipal and local authorities. These activities can expose us to
enhanced sovereign, credit-related, operational and reputational
risks, including the risks that a governmental entity may default
on or restructure its obligations or may claim that actions taken
by government officials were beyond the legal authority of those
officials, which could adversely affect our financial condition and
results of operations.
Unfavorable market or economic conditions have affected
our businesses over the last years, including the low interest rate
environment, continued cautious investor behavior and changes
in market structure, particularly in our macro businesses. These
negative factors have been reflected in lower commissions and
fees from our client-flow sales and trading and asset manage-
ment activities, including commissions and fees that are based on
the value of our clients’ portfolios. Investment performance that
is below that of competitors or asset management benchmarks
could result in a decline in assets under management and related
fees and make it harder to attract new clients. There has been a
fundamental shift in client demand away from more complex prod-
ucts and significant client deleveraging, and our Private Banking &
Wealth Management division’s results of operations have been and
could continue to be adversely affected as long as this continues.
Adverse market or economic conditions have also negatively
affected our private equity investments since, if a private equity
investment substantially declines in value, we may not receive any
increased share of the income and gains from such investment (to
which we are entitled in certain cases when the return on such
investment exceeds certain threshold returns), may be obligated
to return to investors previously received excess carried interest
payments and may lose our pro rata share of the capital invested.
In addition, it could become more difficult to dispose of the invest-
ment, as even investments that are performing well may prove
difficult to exit.
In addition to the macroeconomic factors discussed above,
other events beyond our control, including terrorist attacks, mili-
tary conflicts, economic or political sanctions, disease pandemics,
political unrest or natural disasters could have a material adverse
effect on economic and market conditions, market volatility and
financial activity, with a potential related effect on our businesses
and results.
We may incur significant losses in the real estate sector
We finance and acquire principal positions in a number of real
estate and real estate-related products, primarily for clients, and
originate loans secured by commercial and residential properties.
As of December 31, 2014, our real estate loans (as reported to
the SNB) totaled approximately CHF 146 billion. We also secu-
ritize and trade in commercial and residential real estate and real
estate-related whole loans, mortgages, and other real estate and
commercial assets and products, including q commercial mort-
gage-backed securities and q RMBS. Our real estate-related
businesses and risk exposures could continue to be adversely
affected by any downturn in real estate markets, other sectors and
the economy as a whole. In particular, the risk of potential price
corrections in the real estate market in certain areas of Switzer-
land could have a material adverse effect on our real estate-related
businesses.

Risk factors
Holding large and concentrated positions may expose us to
large losses
Concentrations of risk could increase losses, given that we have
sizeable loans to, and securities holdings in, certain customers,
industries or countries. Decreasing economic growth in any sector
in which we make significant commitments, for example, through
underwriting, lending or advisory services, could also negatively
affect our net revenues.
We have significant risk concentration in the financial services
industry as a result of the large volume of transactions we routinely
conduct with broker-dealers, banks, funds and other financial insti-
tutions, and in the ordinary conduct of our business we may be
subject to risk concentration with a particular counterparty. We,
like other financial institutions, continue to adapt our practices and
operations in consultation with our regulators to better address an
evolving understanding of our exposure to, and management of,
systemic risk and risk concentration to financial institutions. Regu-
lators continue to focus on these risks, and there are numerous
new regulations and government proposals, and significant ongo-
ing regulatory uncertainty, about how best to address them. There
can be no assurance that the changes in our industry, operations,
practices and regulation will be effective in managing this risk.
u Refer to “Regulation and supervision” for further information.
Risk concentration may cause us to suffer losses even when eco-
nomic and market conditions are generally favorable for others in
our industry.
Our hedging strategies may not prevent losses
If any of the variety of instruments and strategies we use to hedge
our exposure to various types of risk in our businesses is not effec-
tive, we may incur losses. We may be unable to purchase hedges
or be only partially hedged, or our hedging strategies may not be
fully effective in mitigating our risk exposure in all market environ-
ments or against all types of risk.
Market risk may increase the other risks that we face
In addition to the potentially adverse effects on our businesses
described above, market risk could exacerbate the other risks
that we face. For example, if we were to incur substantial trading
losses, our need for liquidity could rise sharply while our access
to liquidity could be impaired. In conjunction with another mar-
ket downturn, our customers and counterparties could also incur
substantial losses of their own, thereby weakening their financial
condition and increasing our credit and counterparty risk exposure
to them.
Credit risk
We may suffer significant losses from our credit exposures
Our businesses are subject to the fundamental risk that borrowers
and other counterparties will be unable to perform their obliga-
tions. Our credit exposures exist across a wide range of transac-
tions that we engage in with a large number of clients and coun-
terparties, including lending relationships, commitments and letters
of credit, as well as q derivative, currency exchange and other
transactions. Our exposure to credit risk can be exacerbated by
adverse economic or market trends, as well as increased volatil-
ity in relevant markets or instruments. In addition, disruptions in
the liquidity or transparency of the financial markets may result
in our inability to sell, syndicate or realize the value of our posi-
tions, thereby leading to increased concentrations. Any inability to
reduce these positions may not only increase the market and credit
risks associated with such positions, but also increase the level of
qrisk-weighted assets on our balance sheet, thereby increasing
our capital requirements, all of which could adversely affect our
businesses.
u Refer to “Credit risk” in III – Treasury, Risk, Balance sheet and Off-balance
sheet – Risk management for information on management of credit risk.
Our regular review of the creditworthiness of clients and counter-
parties for credit losses does not depend on the accounting treat-
ment of the asset or commitment. Changes in creditworthiness of
loans and loan commitments that are qfair valued are reflected in
trading revenues.
Management’s determination of the provision for loan losses is
subject to significant judgment. Our banking businesses may need
to increase their provisions for loan losses or may record losses
in excess of the previously determined provisions if our original
estimates of loss prove inadequate, which could have a material
adverse effect on our results of operations.
u Refer to “Credit risk” in III – Treasury, Risk, Balance sheet and Off-balance
sheet – Risk management and “Note 1 – Summary of significant accounting poli-
cies”, “Note 10 – Provision for credit losses” and “Note 18 – Loans, allowance
for loan losses and credit quality” in V – Consolidated financial statements –
Credit Suisse Group for information on provisions for loan losses and related risk
mitigation.
We have experienced in the past, and may in the future expe-
rience, competitive pressure to assume longer-term credit risk,
extend credit against less liquid collateral and price derivative
instruments more aggressively based on the credit risks that we
take. We expect our capital and liquidity requirements, and those
of the financial services industry, to increase as a result of these
risks.
Defaults by a large financial institution could adversely
affect financial markets generally and us specifically
Concerns or even rumors about or a default by one institution could
lead to significant liquidity problems, losses or defaults by other
institutions because the commercial soundness of many financial
institutions may be closely related as a result of credit, trading,
clearing or other relationships between institutions. This risk is
sometimes referred to as systemic risk. Concerns about defaults
by and failures of many financial institutions, particularly those with
significant exposure to the eurozone, continued in 2014 and could
continue to lead to losses or defaults by financial institutions and
financial intermediaries with which we interact on a daily basis,
such as clearing agencies, clearing houses, banks, securities firms
and exchanges. Our credit risk exposure will also increase if the

42
collateral we hold cannot be realized upon or can only be liquidated
at prices insufficient to cover the full amount of exposure.
The information that we use to manage our credit risk may
be inaccurate or incomplete
Although we regularly review our credit exposure to specific cli-
ents and counterparties and to specific industries, countries and
regions that we believe may present credit concerns, default risk
may arise from events or circumstances that are difficult to foresee
or detect, such as fraud. We may also fail to receive full informa-
tion with respect to the credit or trading risks of a counterparty.
Risks from estimates and valuations
We make estimates and valuations that affect our reported results,
including measuring the qfair value of certain assets and liabili-
ties, establishing provisions for contingencies and losses for loans,
litigation and regulatory proceedings, accounting for goodwill
and intangible asset impairments, evaluating our ability to realize
deferred tax assets, valuing equity-based compensation awards,
modeling our risk exposure and calculating expenses and liabilities
associated with our pension plans. These estimates are based
upon judgment and available information, and our actual results
may differ materially from these estimates.
u Refer to “Critical accounting estimates” in II – Operating and financial review
and “Note 1 – Summary of significant accounting policies” in V – Consolidated
financial statements – Credit Suisse Group for information on these estimates
and valuations.
Our estimates and valuations rely on models and processes to
predict economic conditions and market or other events that might
affect the ability of counterparties to perform their obligations to
us or impact the value of assets. To the extent our models and
processes become less predictive due to unforeseen market con-
ditions, illiquidity or volatility, our ability to make accurate estimates
and valuations could be adversely affected.
Risks relating to off-balance sheet entities
We enter into transactions with special purpose entities (SPEs) in
our normal course of business, and certain SPEs with which we
transact business are not consolidated and their assets and liabili-
ties are off-balance sheet. We may have to exercise significant
management judgment in applying relevant accounting consolida-
tion standards, either initially or after the occurrence of certain
events that may require us to reassess whether consolidation is
required. Accounting standards relating to consolidation, and their
interpretation, have changed and may continue to change. If we
are required to consolidate an SPE, its assets and liabilities would
be recorded on our consolidated balance sheets and we would
recognize related gains and losses in our consolidated statements
of operations, and this could have an adverse impact on our results
of operations and capital and leverage ratios.
u Refer to “Off-balance sheet” in III – Treasury, Risk, Balance sheet and Off-
balance sheet – Balance sheet, off-balance sheet and contractual obligations for
information on our transactions with and commitments to SPEs.
Cross-border and CURRENCY exchange risk
Cross-border risks may increase market and credit risks we
face
Country, regional and political risks are components of market and
credit risk. Financial markets and economic conditions generally
have been and may in the future be materially affected by such
risks. Economic or political pressures in a country or region, includ-
ing those arising from local market disruptions, currency crises,
monetary controls or other factors, may adversely affect the abil-
ity of clients or counterparties located in that country or region to
obtain foreign currency or credit and, therefore, to perform their
obligations to us, which in turn may have an adverse impact on our
results of operations.
We may face significant losses in emerging markets
As a global financial services company doing business in emerg-
ing markets, we are exposed to economic instability in emerging
market countries. We monitor these risks, seek diversity in the
sectors in which we invest and emphasize client-driven business.
Our efforts at limiting emerging market risk, however, may not
always succeed. In addition, various emerging market countries
have experienced and may continue to experience severe eco-
nomic and financial disruptions. The possible effects of any such
disruptions may include an adverse impact on our businesses and
increased volatility in financial markets generally.
Currency fluctuations may adversely affect our results of
operations
We are exposed to risk from fluctuations in exchange rates for
currencies, particularly the US dollar. In particular, a substantial
portion of our assets and liabilities are denominated in curren-
cies other than the Swiss franc, which is the primary currency of
our financial reporting. Our capital is also stated in Swiss francs
and we do not fully hedge our capital position against changes
in currency exchange rates. Despite some weakening, the Swiss
franc remained strong against the US dollar and euro in 2014. The
appreciation of the Swiss franc in particular and exchange rate
volatility in general have had an adverse impact on our results of
operations and capital position in recent years and may have such
an effect in the future.
In addition, on January 15, 2015, the SNB decided to discon-
tinue the minimum exchange rate of CHF 1.20 per euro. As we
incur a significant part of our expenses in Swiss francs while we
generate a large proportion of our revenues in other currencies, our
earnings are sensitive to changes in the exchange rates between
the Swiss franc and other major currencies. Had the SNB taken
this action at the beginning of 2014, our 2014 results would have
been adversely effected. Although we are implementing a number
of measures designed to offset the impact of recent exchange rate
fluctuations on our results of operations, the continuing strength
and further appreciation of the Swiss franc could have a material
adverse impact on our results.

Risk factors
Operational risk
We are exposed to a wide variety of operational risks,
including information technology risk
Operational risk is the risk of loss resulting from inadequate or
failed internal processes, people and systems or from external
events. In general, although we have business continuity plans,
our businesses face a wide variety of operational risks, includ-
ing technology risk that stems from dependencies on informa-
tion technology, third-party suppliers and the telecommunications
infrastructure. As a global financial services company, we rely
heavily on our financial, accounting and other data processing sys-
tems, which are varied and complex. Our business depends on our
ability to process a large volume of diverse and complex transac-
tions, including qderivatives transactions, which have increased in
volume and complexity. We are exposed to operational risk aris-
ing from errors made in the execution, confirmation or settlement
of transactions or in transactions not being properly recorded or
accounted for. Regulatory requirements in this area have increased
and are expected to increase further.
Information security, data confidentiality and integrity are of
critical importance to our businesses. Despite our wide array of
security measures to protect the confidentiality, integrity and avail-
ability of our systems and information, it is not always possible to
anticipate the evolving threat landscape and mitigate all risks to
our systems and information. We could also be affected by risks
to the systems and information of clients, vendors, service provid-
ers, counterparties and other third parties. In addition, we may
introduce new products or services or change processes, resulting
in new operational risk that we may not fully appreciate or identify.
These threats may derive from human error, fraud or malice,
or may result from accidental technological failure. There may also
be attempts to fraudulently induce employees, clients, third parties
or other users of our systems to disclose sensitive information in
order to gain access to our data or that of our clients.
Given our global footprint and the high volume of transactions
we process, the large number of clients, partners and counterpar-
ties with which we do business, and the increasing sophistication
of cyber-attacks, a cyber-attack could occur without detection for
an extended period of time. In addition, we expect that any investi-
gation of a cyber-attack will be inherently unpredictable and it may
take time before any investigation is complete. During such time,
we may not know the extent of the harm or how best to remediate
it and certain errors or actions may be repeated or compounded
before they are discovered and rectified, all or any of which would
further increase the costs and consequences of a cyber-attack.
If any of our systems do not operate properly or are compro-
mised as a result of cyber-attacks, security breaches, unauthor-
ized access, loss or destruction of data, unavailability of service,
computer viruses or other events that could have an adverse secu-
rity impact, we could be subject to litigation or suffer financial loss
not covered by insurance, a disruption of our businesses, liability
to our clients, regulatory intervention or reputational damage. Any
such event could also require us to expend significant additional
resources to modify our protective measures or to investigate and
remediate vulnerabilities or other exposures.
We may suffer losses due to employee misconduct
Our businesses are exposed to risk from potential non-compliance
with policies, employee misconduct or negligence and fraud, which
could result in regulatory sanctions and serious reputational or
financial harm. In recent years, a number of multinational finan-
cial institutions have suffered material losses due to the actions
of “rogue traders” or other employees. It is not always possible to
deter employee misconduct and the precautions we take to pre-
vent and detect this activity may not always be effective.
Risk management
We have risk management procedures and policies designed to
manage our risk. These techniques and policies, however, may
not always be effective, particularly in highly volatile markets. We
continue to adapt our risk management techniques, in particular
qvalue-at-risk and economic capital, which rely on historical data,
to reflect changes in the financial and credit markets. No risk man-
agement procedures can anticipate every market development or
event, and our risk management procedures and hedging strate-
gies, and the judgments behind them, may not fully mitigate our
risk exposure in all markets or against all types of risk.
u Refer to “Risk management” in III – Treasury, Risk, Balance sheet and Off-
balance sheet for information on our risk management.
Legal and regulatory risks
Our exposure to legal liability is significant
We face significant legal risks in our businesses, and the volume
and amount of damages claimed in litigation, regulatory proceed-
ings and other adversarial proceedings against financial services
firms are increasing.
We and our subsidiaries are subject to a number of material
legal proceedings, regulatory actions and investigations, and an
adverse result in one or more of these proceedings could have a
material adverse effect on our operating results for any particular
period, depending, in part, upon our results for such period.
u Refer to “Note 38 – Litigation” in V – Consolidated financial statements –
Credit Suisse Group for information relating to these and other legal and regula-
tory proceedings involving our Investment Banking and other businesses.
It is inherently difficult to predict the outcome of many of the legal,
regulatory and other adversarial proceedings involving our busi-
nesses, particularly those cases in which the matters are brought
on behalf of various classes of claimants, seek damages of
unspecified or indeterminate amounts or involve novel legal claims.
Management is required to establish, increase or release reserves
for losses that are probable and reasonably estimable in connec-
tion with these matters.
u Refer to “Critical accounting estimates” in II – Operating and financial review
and “Note 1 – Summary of significant accounting policies” in V – Consolidated
financial statements – Credit Suisse Group for more information.

44
Regulatory changes may adversely affect our business and
ability to execute our strategic plans
As a participant in the financial services industry, we are subject
to extensive regulation by governmental agencies, supervisory
authorities and self-regulatory organizations in Switzerland, the
EU, the UK, the US and other jurisdictions in which we operate
around the world. Such regulation is increasingly more extensive
and complex and, in recent years, costs related to our compliance
with these requirements and the penalties and fines sought and
imposed on the financial services industry by regulatory authorities
have all increased significantly and may increase further. These
regulations often serve to limit our activities, including through
the application of increased capital, leverage and liquidity require-
ments, customer protection and market conduct regulations and
direct or indirect restrictions on the businesses in which we may
operate or invest. Such limitations can have a negative effect on
our business and our ability to implement strategic initiatives. To
the extent we are required to divest certain businesses, we could
incur losses, as we may be forced to sell such businesses at a dis-
count, which in certain instances could be substantial, as a result
of both the constrained timing of such sales and the possibility that
other financial institutions are liquidating similar investments at the
same time.
Since 2008, regulators and governments have focused on
the reform of the financial services industry, including enhanced
capital, leverage and liquidity requirements, changes in compen-
sation practices (including tax levies) and measures to address
systemic risk, including potentially ring-fencing certain activities
and operations within specific legal entities. We are already subject
to extensive regulation in many areas of our business and expect
to face increased regulation and regulatory scrutiny and enforce-
ment. These various regulations and requirements could require us
to reduce assets held in certain subsidiaries, inject capital into or
otherwise change our operations or the structure of our subsidiar-
ies and Group. We expect such increased regulation to continue
to increase our costs, including, but not limited to, costs related to
compliance, systems and operations, as well as affecting our abil-
ity to conduct certain businesses, which could adversely affect our
profitability and competitive position. Variations in the details and
implementation of such regulations may further negatively affect
us, as certain requirements currently are not expected to apply
equally to all of our competitors or to be implemented uniformly
across jurisdictions.
For example, the additional requirements related to minimum
regulatory capital, leverage ratios and liquidity measures imposed
by qBasel III, together with more stringent requirements imposed
by the Swiss q“Too Big To Fail” legislation and its implementing
ordinances and related actions by our regulators, have contrib-
uted to our decision to reduce qrisk-weighted assets and the size
of our balance sheet, and could potentially impact our access to
capital markets and increase our funding costs. In addition, the
ongoing implementation in the US of the provisions of the Dodd-
Frank Act, including the “Volcker Rule”, q derivatives regulation,
and other regulatory developments described in “Regulation and
supervision”, have imposed, and will continue to impose, new regu-
latory burdens on certain of our operations. These requirements
have contributed to our decision to exit certain businesses (includ-
ing a number of our private equity businesses) and may lead us
to exit other businesses. New CFTC and SEC rules could materi-
ally increase the operating costs, including compliance, informa-
tion technology and related costs, associated with our derivatives
businesses with US persons, while at the same time making it
more difficult for us to transact derivatives business outside the
US. Further, in February 2014, the Fed adopted a final rule under
the Dodd-Frank Act that created a new framework for regula-
tion of the US operations of foreign banking organizations such
as ours. Although the final impact of the new rule cannot be fully
predicted at this time, it is expected to result in our incurring addi-
tional costs and to affect the way we conduct our business in the
US, including by requiring us to create a single US intermediate
holding company. Similarly, recently enacted and possible future
cross-border tax regulation with extraterritorial effect, such as the
US Foreign Account Tax Compliance Act, bilateral tax treaties,
such as Switzerland’s treaties with the UK and Austria, and agree-
ments on the automatic exchange of information in tax matters,
impose detailed reporting obligations and increased compliance
and systems-related costs on our businesses. Additionally, imple-
mentation of EMIR, CRD IV and the proposed revisions to MiFID
II may negatively affect our business activities. If Switzerland does
not pass legislation that is deemed equivalent to EMIR and MiFID II
in a timely manner, Swiss banks, including us, may be limited from
participating in businesses regulated by such laws. Finally, new
total loss-absorbing capacity requirements may increase our fund-
ing costs or limit the availability of funding.
We expect the financial services industry, including us, to con-
tinue to be affected by the significant uncertainty over the scope
and content of regulatory reform in 2015 and beyond. Changes
in laws, rules or regulations, or in their interpretation or enforce-
ment, or the implementation of new laws, rules or regulations, may
adversely affect our results of operations.
Despite our best efforts to comply with applicable regulations,
a number of risks remain, particularly in areas where applicable
regulations may be unclear or inconsistent among jurisdictions or
where regulators revise their previous guidance or courts over-
turn previous rulings. Authorities in many jurisdictions have the
power to bring administrative or judicial proceedings against us,
which could result in, among other things, suspension or revoca-
tion of our licenses, cease and desist orders, fines, civil penalties,
criminal penalties or other disciplinary action which could materially
adversely affect our results of operations and seriously harm our
reputation.
u Refer to “Regulation and supervision” for a description of our regulatory
regime and a summary of some of the significant regulatory and government
reform proposals affecting the financial services industry as well as to “Liquidity
and funding management” and “Capital management” in III – Treasury, Risk, Bal-
ance sheet and Off-balance sheet for information regarding our current regula-
tory framework and expected changes to this framework affecting capital and
liquidity standards.

Risk factors
Swiss resolution proceedings may affect our shareholders
and creditors
Pursuant to Swiss banking laws, qFINMA has broad powers and
discretion in the case of resolution proceedings with respect to
a Swiss bank, such as Credit Suisse AG. These broad powers
include the power to cancel Credit Suisse AG’s outstanding equity
(which currently is Credit Suisse Group AG’s primary asset), con-
vert debt instruments and other liabilities of Credit Suisse AG into
equity and cancel such liabilities in whole or in part. As of the
date hereof, FINMA’s broad resolution powers apply only to duly
licensed banks in Switzerland such as Credit Suisse AG, and not
to a parent company of a financial group such as Credit Suisse
Group AG. However, a proposed amendment to the Swiss banking
laws would extend the scope of the Swiss bank resolution regime
to Swiss parent companies of financial groups, such as Credit
Suisse Group AG, and certain other unregulated Swiss-domiciled
companies belonging to a financial group. It is not possible to pre-
dict whether or when such amendment will be enacted, what final
form it would take and what effect it could have on shareholders
or creditors of Credit Suisse Group AG or Credit Suisse Group AG
generally. However, if the Swiss banking laws were amended so
that the same resolution regime that currently applies to Credit
Suisse AG were to apply to Credit Suisse Group AG, FINMA would
be able to exercise its resolution powers thereunder to, among
other things, cancel Credit Suisse Group AG’s outstanding equity,
convert debt instruments and other liabilities of Credit Suisse
Group AG into equity and cancel such liabilities in whole or in part
in restructuring proceedings.
u Refer to “Recent regulatory developments and proposals – Switzerland” and
“Regulatory framework – Switzerland – Resolution regime” in Regulation and
supervision for a description of the current resolution regime under Swiss bank-
ing laws as it applies to Credit Suisse AG.
Changes in monetary policy are beyond our control and
difficult to predict
We are affected by the monetary policies adopted by the cen-
tral banks and regulatory authorities of Switzerland, the US and
other countries. The actions of the SNB and other central bank-
ing authorities directly impact our cost of funds for lending, capi-
tal raising and investment activities and may impact the value of
financial instruments we hold and the competitive and operating
environment for the financial services industry. Many central banks
have implemented significant changes to their monetary policy. We
cannot predict whether these changes will have a material adverse
effect on us or our operations. In addition, changes in monetary
policy may affect the credit quality of our customers. Any changes
in monetary policy are beyond our control and difficult to predict.
Legal restrictions on our clients may reduce the demand
for our services
We may be materially affected not only by regulations applica-
ble to us as a financial services company, but also by regulations
and changes in enforcement practices applicable to our clients.
Our business could be affected by, among other things, existing
and proposed tax legislation, antitrust and competition policies,
corporate governance initiatives and other governmental regula-
tions and policies, and changes in the interpretation or enforce-
ment of existing laws and rules that affect business and the finan-
cial markets. For example, focus on tax compliance and changes
in enforcement practices could lead to further asset outflows from
our Wealth Management Clients business.
Any conversion of our convertible capital instruments will
dilute the ownership interests of existing shareholders
Under Swiss regulatory capital rules, we are required to issue a
significant amount of contingent capital instruments, certain of
which will convert into common equity upon the occurrence of
specified triggering events, including our CET1 ratio falling below
prescribed thresholds, or a determination by FINMA that conver-
sion is necessary, or that we require public sector capital support,
to prevent us from becoming insolvent. We have already issued in
the aggregate an equivalent of CHF 8.6 billion in principal amount
of such convertible contingent capital, and we may issue more
such convertible contingent capital in the future. The conversion of
some or all of our convertible contingent capital due to the occur-
rence of a triggering event will result in the dilution of the own-
ership interests of our then existing shareholders, which dilution
could be substantial. Additionally, any conversion, or the anticipa-
tion of the possibility of a conversion, could depress the market
price of our ordinary shares.
u Refer to “Banking relationships and related party transactions” in IV – Cor-
porate Governance and Compensation – Corporate Governance for more infor-
mation on the triggering events related to our convertible contingent capital
instruments.
Competition
We face intense competition
We face intense competition in all financial services markets and
for the products and services we offer. Consolidation through
mergers, acquisitions, alliances and cooperation, including as a
result of financial distress, has increased competitive pressures.
Competition is based on many factors, including the products and
services offered, pricing, distribution systems, customer service,
brand recognition, perceived financial strength and the willingness
to use capital to serve client needs. Consolidation has created
a number of firms that, like us, have the ability to offer a wide
range of products, from loans and deposit-taking to brokerage,
investment banking and asset management services. Some of
these firms may be able to offer a broader range of products than
we do, or offer such products at more competitive prices. Cur-
rent market conditions have resulted in significant changes in the
competitive landscape in our industry as many institutions have
merged, altered the scope of their business, declared bankruptcy,
received government assistance or changed their regulatory sta-
tus, which will affect how they conduct their business. In addi-
tion, current market conditions have had a fundamental impact
on client demand for products and services. Although we expect
the increasing consolidation and changes in our industry to offer

46
opportunities, we can give no assurance that our results of opera-
tions will not be adversely affected.
Our competitive position could be harmed if our reputation
is damaged
In the highly competitive environment arising from globalization
and convergence in the financial services industry, a reputation
for financial strength and integrity is critical to our performance,
including our ability to attract and maintain clients and employees.
Our reputation could be harmed if our comprehensive procedures
and controls fail, or appear to fail, to address conflicts of interest,
prevent employee misconduct, produce materially accurate and
complete financial and other information or prevent adverse legal
or regulatory actions.
u Refer to “Reputational risk” in III – Treasury, Risk, Balance sheet and Off-
balance sheet – Risk management for more information.
We must recruit and retain highly skilled employees
Our performance is largely dependent on the talents and efforts
of highly skilled individuals. Competition for qualified employees
is intense. We have devoted considerable resources to recruit-
ing, training and compensating employees. Our continued ability
to compete effectively in our businesses depends on our ability
to attract new employees and to retain and motivate our existing
employees. The continued public focus on compensation practices
in the financial services industry, and related regulatory changes,
may have an adverse impact on our ability to attract and retain
highly skilled employees. In particular, new limits on the amount
and form of executive compensation imposed by recent regulatory
initiatives, including the Compensation Ordinance in Switzerland
and the implementation of CRD IV in the UK, could potentially
have an adverse impact on our ability to retain certain of our most
highly skilled employees and hire new qualified employees in cer-
tain businesses.
We face competition from new trading technologies
Our businesses face competitive challenges from new trading
technologies, which may adversely affect our commission and
trading revenues, exclude our businesses from certain transac-
tion flows, reduce our participation in the trading markets and the
associated access to market information and lead to the creation
of new and stronger competitors. We have made, and may con-
tinue to be required to make, significant additional expenditures to
develop and support new trading systems or otherwise invest in
technology to maintain our competitive position.
Risks relating to our strategy
We may not achieve all of the expected benefits of our
strategic initiatives
In light of increasing regulatory and capital requirements and con-
tinued challenging market and economic conditions, to optimize
our use of capital and improve our cost structure we have con-
tinued to adapt our client-focused, capital-efficient strategy and
have implemented new cost-savings measures while decreasing
the size of our balance sheet and reducing our q risk-weighted
assets. In the fourth quarter of 2013, we created non-strategic
units within our Investment Banking and Private Banking & Wealth
Management divisions and separated non-strategic items in the
Corporate Center to further accelerate our reduction of capital and
costs associated with non-strategic activities and positions and to
shift resources to focus on our strategic businesses and growth
initiatives. Factors beyond our control, including but not limited to
the market and economic conditions, changes in laws, rules or
regulations and other challenges discussed in this report, could
limit our ability to achieve some or all of the expected benefits of
these initiatives.
In addition, acquisitions and other similar transactions we
undertake as part of our strategy subject us to certain risks. Even
though we review the records of companies we plan to acquire, it
is generally not feasible for us to review all such records in detail.
Even an in-depth review of records may not reveal existing or
potential problems or permit us to become familiar enough with
a business to assess fully its capabilities and deficiencies. As a
result, we may assume unanticipated liabilities (including legal and
compliance issues), or an acquired business may not perform as
well as expected. We also face the risk that we will not be able to
integrate acquisitions into our existing operations effectively as a
result of, among other things, differing procedures, business prac-
tices and technology systems, as well as difficulties in adapting an
acquired company into our organizational structure. We face the
risk that the returns on acquisitions will not support the expendi-
tures or indebtedness incurred to acquire such businesses or the
capital expenditures needed to develop such businesses.
We may also seek to engage in new joint ventures and stra-
tegic alliances. Although we endeavor to identify appropriate part-
ners, our joint venture efforts may prove unsuccessful or may not
justify our investment and other commitments.
We have announced a program to evolve our legal entity
structure and cannot predict its final form or potential effects
In 2013, we announced key components of our program to evolve
our legal entity structure. The program is designed to meet devel-
oping and future regulatory requirements. Subject to further analy-
sis and approval by qFINMA and other regulators, implementation
of the program is underway, with a number of key components
expected to be implemented throughout 2015 and 2016. This pro-
gram remains subject to a number of uncertainties that may affect
its feasibility, scope and timing. In addition, significant legal and
regulatory changes affecting us and our operations may require us
to make further changes in our legal structure. The implementation
of these changes will require significant time and resources and
may potentially increase operational, capital, funding and tax costs
as well as our counterparties’ credit risk.
u Refer to “Evolution of legal entity structure” in II – Operating and financial
review – Credit Suisse – Information and developments for further information on
our legal entity structure.

47
Operating and
financial review
48 Operating environment
51 Credit Suisse
59 Core Results
67 Private Banking &
Wealth Management
80 Investment Banking
87 Corporate Center
90 Assets under management
93 Critical accounting estimates
II

48
Yield curves
Yield curves flattened in all major currencies.
%
USD
0 5 10 15 20 25
(1)
0
1
2
3
4
Years
%
EUR
0 5 10 15 20 25Years
%
CHF
0 5 10 15 20 25
(1)
0
1
2
3
4
Years
(1)
0
1
2
3
4
p December 31, 2013 p December 31, 2014
Source: Datastream, Credit Suisse
Operating environment
While in 2014 economic conditions improved in the US, growth remained weak in the eurozone. Equity markets ended
the year higher. Interest rates remained low. Commodity prices decreased significantly, driven by lower energy prices. The
US dollar appreciated against all major currencies in 2014.
Economic environment
The year was marked by solid US economic growth following
signs of softening in the first quarter. Unemployment continued its
declining trend and inflationary pressure remained largely absent.
The steep decline in energy prices late in the year caused headline
inflation metrics to recede markedly. Economic growth in the euro-
zone remained weak, impacted by rising uncertainty and geopoliti-
cal tensions weighing on the economies. While a recession was
avoided in Europe, the risk of deflation in certain eurozone coun-
tries increased sharply. Japan’s economy fell into recession follow-
ing the consumption tax increase in April. Among major emerg-
ing markets, economic growth in Brazil, China and Russia slowed
down to varying degrees while India’s economy reported higher
growth rates.
Throughout 2014, the US Federal Reserve (Fed) steadily
reduced its asset purchase program, fully ending it by the end
of October. In contrast, the European Central Bank (ECB) cut its
policy rate to 0.05%, introduced a negative deposit rate and a pur-
chase program for private sector assets, and injected new liquidity
into the banking system. In December 2014, the Swiss National
Bank (SNB) announced a negative interest rate in order to make
Swiss franc deposits less attractive. The Bank of Japan (BoJ)
continued its asset purchase program and announced a significant
increase in October. In emerging markets, China’s central bank
lowered its policy rate towards the end of the year, while India’s
central bank kept its stable throughout 2014. Brazil’s central bank
tightened monetary policy following elevated inflation pressure and
Russia’s central bank increased interest rates significantly in the
second half following a period of intense selling pressure on the
ruble.
Equity markets increased more than 9% in 2014, despite
the uncertainties arising from the sell-off in oil markets in the
fourth quarter. US equities benefited from strong macroeco-
nomic momentum throughout the year, ending with a double-
digit increase. European equities faced a less favorable economic
environment and uncertainties surrounding the anticipated ECB
actions also weighed on them. Japanese equities benefited from
the BoJ’s expansionary monetary policy and ended 2014 among
the best performing regions. Emerging markets, which were
mainly impacted by geopolitical tensions, had a weaker perfor-
mance. Equity market volatility, as indicated by the Chicago Board
Options Exchange Market Volatility Index (VIX), increased in the
second half of the year (refer to the charts “Equity markets”). The
Credit Suisse Hedge Fund Index increased 4.1% in 2014.

49Operating and financial review
Operating environment
Equity markets
Equity markets closed higher in 2014. European banks underperformed world banks. Higher volatility towards the end of the year.
p Emerging markets Asia p Europe p MSCI World banks p MSCI European banks p VDAX
p Emerging markets Latin America p North America p MSCI World p VIX Index
Source: Datastream, MSCI Barra, Credit Suisse Source: Datastream, MSCI Barra, Credit Suisse Source: Datastream, Credit Suisse
Index (December 31, 2013 = 100)
Performance by region
1Q 2Q 4Q3Q 1Q 2Q 4Q3Q 1Q 2Q 4Q3Q
88
94
100
106
112
118
2014
Index (December 31, 2013 = 100)
Performance world banks
88
94
100
106
112
118
2014 2014
%
Volatility
5
10
15
20
25
30
Credit spreads
Credit spreads widened in the second half of the year.
p European CDS (iTraxx) p North American CDS (CDX) bp: basis points
Source: Bloomberg, Credit Suisse
1Q 2Q 3Q 4Q
bp
50
55
60
65
70
75
80
85
90
2014
Most fixed income assets delivered a strong performance in
2014. This was led by long-dated benchmark government bonds,
which particularly benefited from the decline in inflation expecta-
tions and continued central bank easing measures in the eurozone
and Japan. While eurozone government bonds, particularly those
of the periphery (with the exception of Greece), outperformed,
Japanese government bonds lagged the rest of the government
bonds in developed markets. With the long-end declining more
than the short-end, yield curves flattened in all major currencies
(refer to the chart “Yield curves”). In light of deflationary pressures,
inflation-linked bonds underperformed nominal government bonds.
Credit spreads widened since the end of June within a narrow
band (refer to the chart “Credit spreads”). Weakness in the energy
sector particularly weighed on the US high yield market and also
negatively impacted the performance of emerging market hard
currency bonds. Sovereign bonds from net oil exporting countries
experienced strong credit spread widening.
The US dollar appreciated against all major currencies in 2014,
supported by the solid economic growth in the US and market
expectations of higher US interest rates. Easing of monetary policy
in the eurozone helped to weaken the euro against the US dollar.
The Japanese yen also weakened against the US dollar as the
BoJ pursued its expansionary monetary policy. The SNB main-
tained its minimum exchange rate for the euro against the Swiss
franc at 1.20 in 2014. On January 15, 2015, the SNB decided
to discontinue the minimum exchange rate of CHF 1.20 per euro
and continued to lower short-term interest rates. These actions
dramatically altered the market environment for a number of Swiss
companies, which typically incur the majority of their expenses
in Swiss francs, while they generate a large proportion of their
revenues in other currencies. Commodity currencies, such as the
Australian and Canadian dollars and the Russian ruble, depreci-
ated as prices of commodities, particularly oil, declined sharply in
the second half of 2014.
Commodities had a challenging 2014, with benchmark indi-
ces losing significant ground towards year-end. Initial weather-
related advances in agricultural markets were followed by gains
in metals and energy segments through the second quarter of
2014. The trend turned during the second half of the year when
global demand began to decrease while supplies continued to
grow firmly. Energy markets in particular witnessed the sharp-
est decrease since the global financial crisis as energy prices lost
more than 40% in 2014. The Credit Suisse Commodities Bench-
mark decreased 26% for the year, mainly due to energy prices.
Gold markets had a less turbulent year, but prices ended 1% lower
due to lack of investor demand.

50
Market volumes (growth in % year on year)
2014
Global
Europe
Equity trading volume 1
17
19
Announced mergers and acquisitions 2
27
21
Completed mergers and acquisitions 2
7
(11)
Equity underwriting 2
18
62
Debt underwriting 2
(1)
3
Syndicated lending – investment-grade 2
20
–
1
London Stock Exchange, Borsa Italiana, Deutsche Börse, BME and Euronext. Global also
includes ICE and NASDAQ.
2
Dealogic.
Sector environment
The banking sector was influenced by central bank measures
while it continued to transition to new regulatory requirements.
Global banks took significant steps to restructure businesses and
decrease costs while also taking measures to increase capital and
liquidity ratios. North American bank stocks outperformed global
equity indices and ended the year 13.3% higher. European bank
stocks finished the year 0.4% lower (refer to the charts “Equity
markets”).
In private banking, clients maintained a cautious investment
stance, with cash deposits remaining high despite ongoing low
or falling interest rates. Global net new asset trends in wealth
management remained positive. In Switzerland, concerns about
a real estate market correction and its impact on Swiss banking
remained pronounced, with the SNB reiterating concerns about
the imbalances in mortgage and real estate markets. Overall, the
wealth management sector continued to adapt to further industry-
specific regulatory changes.
In investment banking, US and European equity trading vol-
umes increased compared to 2013, particularly in the fourth quar-
ter of 2014. US fixed income volumes decreased compared to
2013, driven by weaker mortgage-backed and government vol-
umes. Compared to 2013, global completed mergers and acquisi-
tions (M&A) volumes increased 7%, but were negatively impacted
by lower volumes in Europe which decreased 11%. Global
announced M&A volumes rose 27%. Global equity underwriting
volumes increased 18%, driven by a 62% increase in Europe,
while global debt underwriting volumes decreased slightly com-
pared to 2013.

Credit Suisse
Credit Suisse
In 2014, we recorded net income attributable to sharehold-
ers of CHF 1,875 million. Diluted earnings per share from
continuing operations were CHF 1.01 and return on equity
attributable to shareholders was 4.4%.
As of the end of 2014, our Basel III CET1 ratio was
14.9% and 10.1% on a look-through basis. Our risk-
weighted assets increased 6% compared to 2013 to
CHF 291.4 billion.
Results

in / end of
% change

2014
2013
2012
14 / 13
13 / 12
Statements of operations (CHF million)

Net interest income
9,034
8,115
7,143
11
14
Commissions and fees
13,051
13,226
12,724
(1)
4
Trading revenues
2,026
2,739
1,196
(26)
129
Other revenues
2,131
1,776
2,548
20
(30)
Net revenues
26,242
25,856
23,611
1
10
186
167
170
11
(2)
Compensation and benefits
11,334
11,256
12,303
1
(9)
General and administrative expenses
9,534
8,599
7,246
11
19
Commission expenses
1,561
1,738
1,702
(10)
2
Total other operating expenses
11,095
10,337
8,948
7
16
22,429
21,593
21,251
4
2
3,627
4,096
2,190
(11)
87
Income tax expense
1,405
1,276
465
10
174
Income from continuing operations
2,222
2,820
1,725
(21)
63
Income/(loss) from discontinued operations
102
145
(40)
(30)
–
Net income
2,324
2,965
1,685
(22)
76
Net income attributable to noncontrolling interests
449
639
336
(30)
90
Net income/(loss) attributable to shareholders
1,875
2,326
1,349
(19)
72
1,773
2,181
1,389
(19)
57
of which from discontinued operations
102
145
(40)
(30)
–
Earnings per share (CHF)

Basic earnings per share from continuing operations
1.02
1.14
0.82
(11)
39
Basic earnings per share
1.08
1.22
0.79
(11)
54
Diluted earnings per share from continuing operations
1.01
1.14
0.82
(11)
39
Diluted earnings per share
1.07
1.22
0.79
(12)
54
Return on equity (%)

Return on equity attributable to shareholders
4.4
5.7
3.9
–
–
Return on tangible equity attributable to shareholders 1
5.4
7.2
5.2
–
–

Number of employees
45,800
46,000
47,400
0
(3)
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 share-
holders’ equity attributable to shareholders. Management believes that the return on tangible shareholders’ equity attributable to shareholders is meaningful as it allows consistent measure-
ment of the performance of businesses without regard to whether the businesses were acquired.

52
Credit Suisse and Core Results

Core Results
Noncontrolling interests without SEI
Credit Suisse
in
2014
2013
2012
2014
2013
2012
2014
2013
2012

Net revenues
25,815
25,217
23,251
427
639
360
26,242
25,856
23,611
186
167
170
0
0
0
186
167
170
11,310
11,221
12,267
24
35
36
11,334
11,256
12,303
9,526
8,587
7,224
8
12
22
9,534
8,599
7,246
Commission expenses
1,561
1,738
1,702
0
0
0
1,561
1,738
1,702
11,087
10,325
8,926
8
12
22
11,095
10,337
8,948
22,397
21,546
21,193
32
47
58
22,429
21,593
21,251
Income from continuing

operations before taxes
3,232
3,504
1,888
395
592
302
3,627
4,096
2,190
Income tax expense
1,405
1,276
465
0
0
0
1,405
1,276
465
1,827
2,228
1,423
395
592
302
2,222
2,820
1,725
102
145
(40)
0
0
0
102
145
(40)
Net income
1,929
2,373
1,383
395
592
302
2,324
2,965
1,685
54
47
34
395
592
302
449
639
336
1,875
2,326
1,349
0
0
0
1,875
2,326
1,349
Statement of operations metrics (%)

Cost/income ratio
86.8
85.4
91.1
–
–
–
85.5
83.5
90.0
Pre-tax income margin
12.5
13.9
8.1
–
–
–
13.8
15.8
9.3
Effective tax rate
43.5
36.4
24.6
–
–
–
38.7
31.2
21.2
Net income margin 1
7.3
9.2
5.8
–
–
–
7.1
9.0
5.7
1
Based on amounts attributable to shareholders.
Differences between Group and Bank
Except where noted, the business of the Bank is substantially the
same as the business of Credit Suisse Group, and substantially all
of the Bank’s operations are conducted through the Private Bank-
ing & Wealth Management and Investment Banking segments.
These segment results are included in Core Results. Certain other
assets, liabilities and results of operations are managed as part of
the activities of the two segments. However, since they are legally
owned by the Group, they are not included in the Bank’s consoli-
dated financial statements. These relate principally to the activities
of Neue Aargauer Bank and BANK-now, which are managed as
part of Private Banking & Wealth Management, financing vehicles
of the Group and hedging activities relating to share-based com-
pensation awards. Core Results also includes certain Corporate
Center activities of the Group that are not applicable to the Bank.
These operations and activities vary from period to period and
give rise to differences between the Bank’s assets, liabilities, rev-
enues and expenses, including pensions and taxes, and those of
the Group.
u Refer to “Note 40 – Subsidiary guarantee information” in V – Consolidated
financial statements – Credit Suisse Group for further information on the Bank.
Differences between Group and Bank businesses
Entity
Principal business activity
Neue Aargauer Bank
Banking (in the Swiss canton of Aargau)
BANK-now
Private credit and car leasing (in Switzerland)

Special purpose vehicles for various funding activities of the Group,
Financing vehicles of the Group
including for purposes of raising capital

Credit Suisse
Comparison of consolidated statements of operations

Group
Bank
in
2014
2013
2012
2014
2013
2012

Net revenues
26,242
25,856
23,611
25,589
25,314
22,976
22,429
21,593
21,251
22,503
21,567
21,109
3,627
4,096
2,190
2,961
3,654
1,779
Income tax expense
1,405
1,276
465
1,299
1,170
365
2,222
2,820
1,725
1,662
2,484
1,414
102
145
(40)
102
145
(40)
Net income
2,324
2,965
1,685
1,764
2,629
1,374
449
639
336
445
669
333
1,875
2,326
1,349
1,319
1,960
1,041
Comparison of consolidated balance sheets

Group
Bank
end of
2014
2013
2014
2013

Total assets
921,462
872,806
904,849
854,429
Total liabilities
876,461
825,640
860,208
810,797
Capitalization and indebtedness

Group
Bank
end of
2014
2013
2014
2013
Capitalization and indebtedness (CHF million)

Due to banks
26,009
23,108
26,506
23,147
Customer deposits
369,058
333,089
357,569
321,678
Central bank funds purchased, securities sold under

repurchase agreements and securities lending transactions
70,119
94,032
70,119
94,032
Long-term debt
177,898
130,042
172,947
126,741
Other liabilities
233,377
245,369
233,067
245,199
Total liabilities
876,461
825,640
860,208
810,797
Total equity
45,001
47,166
44,641
43,632
Total capitalization and indebtedness
921,462
872,806
904,849
854,429
Capital adequacy – Basel III

Group

Bank
end of
2014
2013
2014
2013
Eligible capital (CHF million)

Common equity tier 1 (CET1) capital
43,322
42,989
40,853
37,700
Total tier 1 capital
49,804
46,061
47,114
40,769
Total eligible capital
60,751
56,288
58,111
52,346
Capital ratios (%)

CET1 ratio
14.9
15.7
14.4
14.3
Tier 1 ratio
17.1
16.8
16.6
15.4
Total capital ratio
20.8
20.6
20.5
19.8

54
Private Banking &
Wealth Management
Investment Banking
Non-
controlling
interest
without
significant
economic
interest
Corporate
Center
Credit Suisse
Core Results
Strategic
results
Non-
strategic
results
Credit Suisse reporting structure
Credit Suisse results include revenues and expenses from the consolidation of certain private equity funds and other entities in which we have
noncontrolling interests without significant economic interest (SEI) in such revenues and expenses. Core Results include the results of our two
segments and the Corporate Center and discontinued operations, but do not include noncontrolling interests without SEI.
Wealth
Management
Clients
Corporate &
Institutional
Clients
Asset
Management
Non-strategic unit
Non-strategic unit
Investment Banking
Non-strategic
items
Dividends of the Bank to the Group
end of
2014
2013
Per share issued (CHF)

Dividend 1, 2
0.00 3
0.00
The Bank’s total share capital is fully paid and consisted of 4,399,680,200 and 4,399,665,200 registered shares as of December 31, 2014 and 2013, respectively.
1
Dividends are determined in accordance with Swiss law and the Bank’s articles of incorporation.
2
In each of 2012, 2011 and 2010, dividends per share issued were CHF 0.23.
3
Proposal of the Board of Directors to the annual general meeting of the Bank for a dividend of CHF 10 million.
Information and developments
Format of presentation and changes in reporting
In managing the business, revenues are evaluated in the aggre-
gate, 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.
As of January 1, 2013, the q Basel Committee on Banking
Supervision qBasel III framework was implemented in Switzerland
along with the Swiss q “Too Big to Fail” legislation and regula-
tions thereunder. Our related disclosures are in accordance with
our current interpretation of such requirements, including relevant
assumptions. Changes in the interpretation of these requirements
in Switzerland or in any of our assumptions or estimates could
result in different numbers from those shown in this report.
References to Swiss leverage exposure refer to the aggre-
gate of balance sheet assets, off-balance sheet exposures, con-
sisting of guarantees and commitments, and regulatory adjust-
ments, including cash collateral netting reversals and qderivative
add-ons.
u Refer to “Swiss leverage ratio” in III – Treasury, Risk, Balance sheet and
Off-balance sheet – Capital management – Swiss capital metrics for further
information.
Beginning in the second quarter of 2014, the majority of the bal-
ance sheet usage related to a portfolio of high-quality liquid assets
previously recorded in the Corporate Center has been allocated
to the business divisions. Prior periods have been restated for the
related impact on assets and Swiss leverage exposures.
u Refer to “Swiss liquidity requirements” in III – Treasury, Risk, Balance sheet
and Off-balance sheet – Liquidity and funding management – Regulatory frame-
work for further information.

Credit Suisse
Non-strategic units
In the fourth quarter of 2013, we created non-strategic units within
our Private Banking & Wealth Management and Investment Bank-
ing divisions and separated non-strategic items in the Corporate
Center to further accelerate our reduction of capital and costs
associated with non-strategic activities and positions and to shift
resources to focus on our strategic businesses and growth ini-
tiatives. The results are disclosed separately within the divisional
results and we have implemented a governance structure to accel-
erate position and expense reductions. We believe this reporting
structure, which clearly delineates between strategic and non-
strategic results, enhances the transparency of our financial dis-
closures while providing increased focus on our strategic busi-
nesses within the business divisions and on the Group level.
We decided to retain these non-strategic units within the divi-
sions, rather than establishing a single non-strategic unit, so as to
benefit from senior management’s expertise and focus. The non-
strategic units have separate management within each division and
a clear governance structure through the establishment of a Non-
Strategic Oversight Board. As a result, we expect that the estab-
lishment of these non-strategic units will drive further reductions
in Swiss leverage exposure and qrisk-weighted assets. It is also
expected to free up capital for future growth in Private Banking
& Wealth Management, accelerating a move towards a more bal-
anced capital allocation between Investment Banking and Private
Banking & Wealth Management, and to allow us to return capital
to our shareholders.
Non-strategic activities and positions are defined as:
p activities with significant capital absorption under new regula-
tions and returns below expectations;
p activities with significant leverage exposures identified for
de-risking;
p activities no longer feasible or economically attractive under
emerging regulatory frameworks;
p assets and liabilities of business activities we are winding down;
p infrastructure associated with activities deemed non-strategic
or redundant; and
p other items reported in the Corporate Center, which we do not
consider representative of our core performance.
u Refer to “Non-strategic results” in Private Banking & Wealth Management
and Investment Banking and “Results overview” in Corporate Center for further
information on non-strategic items.
Discontinued operations
The Private Banking & Wealth Management division completed
the sale of Customized Fund Investment Group (CFIG) in Janu-
ary 2014 and the sale of the domestic private banking business
booked in Germany to ABN AMRO in the third quarter 2014.
These transactions qualify for discontinued operations treatment
under US generally accepted accounting principles (US GAAP),
and revenues and expenses of these businesses and the rele-
vant gains on disposal are classified as discontinued operations in
the Group’s consolidated statements of operations. In the Private
Banking & Wealth Management segment, the gains and expenses
related to the business disposals are included in the segment’s
non-strategic results. The reclassification of the revenues and
expenses from the segment results to discontinued operations
for reporting at the Group level is effected through the Corporate
Center. Prior periods for the Group’s results have been restated to
conform to the current presentation.
Significant litigation matters in 2014
In May 2014, we entered into a comprehensive and final settle-
ment regarding all outstanding US cross-border matters, including
agreements with the United States Department of Justice, the
New York State Department of Financial Services, the Board of
Governors of the Fed and, as announced in the first quarter 2014,
the US Securities and Exchange Commission (SEC). The final
settlement amount was USD 2,815 million (CHF 2,510 million). In
prior periods, we had taken litigation provisions totaling CHF 892
million related to this matter. As a result, a pre-tax litigation settle-
ment charge of CHF 1,618 million was recognized in the second
quarter of 2014 in the non-strategic results of the Private Banking
& Wealth Management division. The settlement included a guilty
plea entered into by our Swiss banking entity, Credit Suisse AG.
In March 2014, we entered into an agreement with the Fed-
eral Housing Finance Agency (FHFA) to settle litigation claims
related to the sale of approximately USD 16.6 billion of residential
mortgage-backed securities between 2005 and 2007. Under the
terms of the agreement, we paid USD 885 million to resolve all
claims in two pending securities lawsuits filed by the FHFA against
us. This settlement had no impact on our 2014 results as it was
covered by provisions recorded in prior periods.
Credit Suisse Group for further information on litigation.
Board of Directors and management changes
At our Annual General Meeting (AGM) in May 2014, shareholders
elected Severin Schwan and Sebastian Thrun as new members
of the Board of Directors. Walter B. Kielholz and Peter Brabeck-
Letmathe, having reached the internal term limits, retired from the
Board of Directors at the 2014 AGM. The Chairman, Urs Rohner,
and the other existing members of the Board of Directors proposed
for re-election were all elected for a further term of one year.
Effective October 17, 2014, Eric Varvel was appointed as
Chairman Asia Pacific and Middle East and stepped down from
the Executive Board and his position as joint head of the Invest-
ment Banking division. James L. Amine and Timothy P. O’Hara
were appointed to the Executive Board to jointly lead the Invest-
ment Banking division with Gaël de Boissard. James L. Amine will
continue to have responsibility for the investment banking depart-
ment, while Timothy P. O’Hara will continue to head the equi-
ties business and his role as President and Chief Executive Offi-
cer (CEO) of Credit Suisse Securities USA remains unchanged.
Gaël de Boissard will continue to head the fixed income business
and his role as CEO of Europe, Middle East and Africa (EMEA)
remains unchanged.

56
Effective October 17, 2014, Helman Sitohang assumed the
role of CEO of Asia Pacific reporting directly to the Group CEO.
He will continue to retain his role as head of Investment Banking
for Asia Pacific.
On March 10, 2015, we announced that the Board of Direc-
tors has appointed Tidjane Thiam as the new CEO of the Group.
He will take over this position from Brady W. Dougan, who will
step down at the end of June 2015 after eight years as CEO of the
Group. Tidjane Thiam currently is Group Chief Executive of Pru-
dential plc, a London-based international financial services group
with operations in the US, Asia, Europe and Latin America.
At the AGM on April 24, 2015, Jean-Daniel Gerber, Board
member since 2012, and Anton van Rossum, Board member since
2005, will be stepping down from the Board, and the Board will
propose Seraina Maag, President and CEO of EMEA for American
International Group (AIG), for election as a new member to the
Board.
Capital distribution proposal
Our Board of Directors will propose to the shareholders at the
AGM on April 24, 2015 a distribution of CHF 0.70 per share out
of reserves from capital contributions for the financial year 2014.
The distribution will be free of Swiss withholding tax and will not
be subject to income tax for Swiss resident individuals holding the
shares as a private investment. The distribution will be 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.
Share issuances
We issued 11.0 million new Group shares in connection with share-
based compensation awards in 2014.
u Refer to “Additional share information” in V – Consolidated financial statements
– Credit Suisse Group – Note 25 – Accumulated other comprehensive income
and additional share information for further information on share issuances.
Evolution of legal entity structure
It has been more than a year since we announced the program
to evolve the Group’s legal entity structure to meet developing
and future regulatory requirements. The program has been pre-
pared in discussion with the Swiss Financial Market Supervisory
Authority FINMA (FINMA), our primary regulator, and will address
regulations in Switzerland, the US and the UK with respect to
future requirements for global recovery and resolution planning
by systemically important banks such as Credit Suisse that will
facilitate resolution of an institution in the event of a failure. We
expect these changes will result in a substantially less complex
and more efficient operating infrastructure for the Group. Further-
more, Swiss banking law provides for the possibility of a limited
reduction in capital requirements in the event of an improvement in
resolvability which this program intends to deliver.
The key components of the program are:
p In Switzerland we continue the process of establishing a sub-
sidiary for our Swiss-booked business, which is planned to
become operational in 2016 pending regulatory approval.
During 2015, we plan to apply for a Swiss banking license
and to incorporate the new legal entity and register it with the
Commercial Register of the Canton of Zurich. We expect that
the new legal entity structure in Switzerland will not signifi-
cantly impact either our current business proposition or our cli-
ent servicing model;
p Our UK operations will remain the hub of our European invest-
ment banking business and we are progressing with our plan to
consolidate our UK business into a single subsidiary. In 2014,
we began to implement the infrastructure changes required to
effectuate the consolidation;
p Our US-based businesses will be subject to the Fed rules for
Enhanced Prudential Standards for Foreign Banking Orga-
nizations. On January 1, 2015, we filed a US Intermediate
Holding Company (IHC) implementation plan with the Fed
that sets forth our approach to come into compliance with the
IHC requirements by the July 2016 deadline. It is anticipated
that our US derivatives business will be transferred from Credit
Suisse International to Credit Suisse Securities USA LLC;
p In Asia, we are enhancing the infrastructure in our Singapore
branch to enable migration of the Asia Pacific derivatives busi-
nesses from Credit Suisse International. The transfer of these
positions to the Singapore branch has begun and we plan to
continue these migrations over the next two years;
p We intend to create a separately capitalized global infrastruc-
ture legal entity in Switzerland and a US subsidiary of the IHC,
which will contain the Shared Services functions; and
p We expect to issue senior unsecured debt that may qualify for
future capital treatment under qtotal loss-absorbing capacity
(TLAC) rules from entities linked to (and guaranteed by) the
Group holding company to facilitate a Single Point of Entry bail-
in resolution strategy in 2015, subject to market conditions.
The program has been approved by the Board of Directors of the
Group. It remains subject to final approval by FINMA and other
regulators. Implementation of the program is underway, with a
number of key components expected to be implemented through-
out 2015 and 2016.
Allocations and funding
Revenue sharing and cost allocation
Responsibility for each product is allocated to a segment, which
records all related revenues and expenses. Revenue-sharing and
service level agreements govern the compensation received by
one segment for generating revenue or providing services on
behalf of another. These agreements are negotiated periodically
by the relevant segments on a product-by-product basis.
The aim of revenue-sharing and service level agreements is to
reflect the pricing structure of unrelated third-party transactions.
Corporate services and business support in finance, opera-
tions, including human resources, legal and compliance, risk man-
agement and IT are provided by the Shared Services area. Shared
Services costs are allocated to the segments and Corporate Cen-
ter based on their requirements and other relevant measures.

Credit Suisse
Funding
We centrally manage our funding activities. New securities for
funding and capital purposes are issued primarily by the Bank.
u Refer to “Funding” in V – Consolidated financial statements – Credit Suisse
Group – Note 5 – Segment information for further information.
Fair valuations
qFair value can be a relevant measurement for financial instru-
ments 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 measure-
ment of economic risk, but rather an indication of the observability
of prices or valuation inputs.
u Refer to “Note 1 – Summary of significant accounting policies” and “Note 34
– Financial instruments” in V – Consolidated financial statements – Credit Suisse
Group for further information.
The fair value of the majority of the Group’s financial instruments
is based on quoted prices in active markets (level 1) or observable
inputs (level 2). These instruments include government and agency
securities, certain q commercial paper, most investment grade
corporate debt, certain high yield debt securities, exchange-traded
and certain qover-the-counter (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
(level 3). For these instruments, the determination of fair value
requires subjective assessment and judgment depending on liquid-
ity, 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 qcollateralized debt obli-
gation securities, private equity investments, certain loans and
credit products, including leveraged finance, certain syndicated
loans and certain high yield bonds, and life finance instruments.
Models were used to value these products. Models are devel-
oped internally and are reviewed by functions independent of the
front office to ensure they are appropriate for current market con-
ditions. The models require subjective assessment and varying
degrees of judgment depending on liquidity, concentration, pricing
assumptions and risks affecting the specific instrument. The mod-
els consider observable and unobservable parameters in calculat-
ing the value of these products, including certain indices relating to
these products. Consideration of these indices is more significant
in periods of lower market activity.
As of the end of 2014, 47% and 30% of our total assets and
total liabilities, respectively, were measured at fair value.
While the majority of our level 3 assets are recorded in Invest-
ment Banking, some are recorded in Private Banking & Wealth
Management’s Asset Management business, specifically cer-
tain private equity investments. Total assets recorded as level 3
increased by CHF 4.4 billion during 2014, primarily reflecting the
foreign exchange translation impact, mainly in trading assets and
loans, and realized and unrealized gains, primarily in trading assets,
partially offset by net sales, primarily in other investments.
Our level 3 assets, excluding noncontrolling interests and
assets of consolidated variable interest entities (VIEs) that are not
risk-weighted assets under the Basel framework, were CHF 35.5
billion, compared to CHF 29.8 billion as of the end of 2013. As of
the end of 2014, these assets comprised 4% of total assets and
8% of total assets measured at fair value, both adjusted on the
same basis, unchanged from 2013.
We believe that the range of any valuation uncertainty, in the
aggregate, would not be material to our financial condition, how-
ever, it may be material to our operating results for any particular
period, depending, in part, upon the operating results for such
period.
Adoption of funding valuation adjustments
Credit Suisse adopted the application of q funding valuation
adjustments (FVA) on uncollateralized derivatives in the fourth
quarter of 2014 in its Investment Banking division. FVA also apply
to collateralized derivatives where the collateral received cannot be
used for funding purposes. The banking industry has increasingly
moved towards this valuation methodology, which accounts for the
funding costs of uncollateralized derivatives at their present value
rather than accruing for these costs over the life of the deriva-
tives. The one-time transitional charge at adoption recognized in
the Investment Banking division was CHF 279 million in the fourth
quarter of 2014.
Regulatory developments and proposals
Government leaders and regulators continued to focus on reform
of the financial services industry, including enhanced capital, lever-
age and liquidity requirements, changes in compensation practices
and measures designed to reduce systemic risk.
u Refer to “Regulation and supervision” in I – Information on the company for
further information.

58
End of / in 2014 (CHF billion, except where indicated)
1
Calculated using income after tax, assumes tax rate of 30% and capital allocated based on average of 10% of average risk-weighted assets and 2.4% of average leverage exposure.
2
For Investment Banking, capital allocation and return calculation are based on US dollar denominated numbers.
Shareholders’ equity 44.0
Return on equity – strategic results 12%
Return on equity 4%
Tangible shareholders’ equity 35.1
Return on tangible shareholders’ equity – strategic results 15%
Return on tangible shareholders’ equity 5%
Regulatory capital 28.8
Return on regulatory capital1
– strategic results 18%
8%
15%
Regulatory capital allocation
Not recognized as regulatory capital
(on a look-through basis)
Investment Banking
8%
Strategic results 9.6
Non-tangible capital,
primarily goodwill 8.9
Tangible capital,
not currently Basel III
effective, e.g. DTA 6.3
Strategic results
16.2 (USD 16.3)2
Non-strategic results
1.3 (USD 1.3)2
Corporate Center 1.3
Non-strategic results 0.4
6.3
8.9
Relationship between total shareholders’ equity, tangible shareholders’ equity and regulatory capital
Credit Suisse measures firm-wide returns against total shareholders’ equity and tangible shareholders’ equity. In addition, it also mea-
sures the efficiency of the firm and its divisions with regards to the usage of capital as determined by the minimum requirements set by
regulators. This regulatory capital, a non-GAAP financial measure, is calculated as the average of 10% of average risk-weighted assets
and 2.4% of the average leverage exposure utilized by each division and the firm as a whole. These percentages are used in the calcula-
tion in order to reflect the 2019 fully phased in Swiss regulatory minimum requirements for qBasel III CET1 capital and leverage ratio.

Core Results
Core Results
For 2014, net income attributable to shareholders was
CHF 1,875 million. Net revenues were CHF 25,815 million
and total operating expenses were CHF 22,397 million.
In our strategic businesses, we reported income from
continuing operations before taxes of CHF 6,790 million
and in our non-strategic businesses we reported a loss
from continuing operations before taxes of CHF 3,558
million in 2014.
Results

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Net interest income
9,055
8,100
7,126
12
14
13,058
13,249
12,751
(1)
4
Trading revenues
2,007
2,750
1,162
(27)
137
Other revenues
1,695
1,118
2,212
52
(49)
Net revenues
25,815
25,217
23,251
2
8
   of which strategic results
25,126
25,475
25,385
(1)
0
   of which non-strategic results
689
(258)
(2,134)
–
(88)
186
167
170
11
(2)
11,310
11,221
12,267
1
(9)
9,526
8,587
7,224
11
19
Commission expenses
1,561
1,738
1,702
(10)
2
11,087
10,325
8,926
7
16
22,397
21,546
21,193
4
2
18,184
18,211
18,962
0
(4)
4,213
3,335
2,231
26
49
Income/(loss) from continuing operations before taxes
3,232
3,504
1,888
(8)
86
6,790
7,173
6,295
(5)
14
(3,558)
(3,669)
(4,407)
(3)
(17)
Income tax expense
1,405
1,276
465
10
174
1,827
2,228
1,423
(18)
57
102
145
(40)
(30)
–
Net income
1,929
2,373
1,383
(19)
72
54
47
34
15
38
1,875
2,326
1,349
(19)
72
4,962
5,095
4,803
(3)
6
(3,087)
(2,769)
(3,454)
11
(20)

Return on regulatory capital 1
8.1
8.9
–
–
–
Cost/income ratio
86.8
85.4
91.1
–
–
12.5
13.9
8.1
–
–
Effective tax rate
43.5
36.4
24.6
–
–
Net income margin 2
7.3
9.2
5.8
–
–
Return on equity (%, annualized)

Return on equity – strategic results
12.2
13.4
–
–
–

Number of employees
45,800
46,000
47,400
0
(3)
1
Calculated using income after tax denominated in CHF; assumes tax rate of 30% in 2014 and 27% in 2013 and capital allocated based on average of 10% of average risk-weighted assets
and 2.4% of average leverage exposure.
2
Based on amounts attributable to shareholders.

60
Strategic and non-strategic results

Strategic results
Core Results
in / end of
2014
2013
2012
2014
2013
2012
2014
2013
2012

Net revenues
25,126
25,475
25,385
689
(258)
(2,134)
25,815
25,217
23,251
152
91
128
34
76
42
186
167
170
10,550
10,447
11,142
760
774
1,125
11,310
11,221
12,267
7,634
7,764
7,820
3,453
2,561
1,106
11,087
10,325
8,926
18,184
18,211
18,962
4,213
3,335
2,231
22,397
21,546
21,193
Income/(loss) from continuing operations

before taxes
6,790
7,173
6,295
(3,558)
(3,669)
(4,407)
3,232
3,504
1,888
Income tax expense/(benefit)
1,774
2,031
1,458
(369)
(755)
(993)
1,405
1,276
465
5,016
5,142
4,837
(3,189)
(2,914)
(3,414)
1,827
2,228
1,423
0
0
0
102
145
(40)
102
145
(40)
Net income/(loss)
5,016
5,142
4,837
(3,087)
(2,769)
(3,454)
1,929
2,373
1,383
54
47
34
0
0
0
54
47
34
4,962
5,095
4,803
(3,087)
(2,769)
(3,454)
1,875
2,326
1,349
Balance sheet statistics (CHF billion)

Risk-weighted assets – Basel III 1
268,428
241,680
252,662
15,820
24,423
31,448
284,248
266,103
284,110
Total assets
887,450
821,607
860,136
32,791
47,575
60,038
920,241
869,182
920,174
Swiss leverage exposure
1,138,450
1,030,749
–
75,046
99,856
–
1,213,496
1,130,605
–
1
Represents risk-weighted assets on a fully phased-in “look-through” basis.
Results overview
Core Results include the results of our two segments, the Cor-
porate Center and discontinued operations. Core Results exclude
revenues and expenses in respect of noncontrolling interests in
which we do not have significant economic interest (SEI).
Certain reclassifications have been made to prior periods to
conform to the current presentation.
u Refer to “Format of presentation and changes in reporting” in Credit Suisse –
Information and developments for further information.
Full-year 2014 results
In 2014, Core Results net income attributable to shareholders was
CHF 1,875 million, down 19% compared to 2013, and net rev-
enues of CHF 25,815 million increased 2% compared to 2013.
Strategic net revenues were stable at CHF 25,126 million
compared to 2013, with slightly lower net revenues for Private
Banking & Wealth Management and stable net revenues for
Investment Banking. Strategic net revenues for Private Banking
& Wealth Management mainly reflected lower net interest income
and lower transaction- and performance-based revenues, partially
offset by higher other revenues. Strategic net revenues for Invest-
ment Banking were stable, as higher results in our fixed income
sales and trading and underwriting and advisory franchises were
offset by lower results in equity sales and trading.
In our non-strategic businesses, net revenues of CHF 689 mil-
lion in 2014 improved from negative net revenues of CHF 258 mil-
lion in 2013. An improvement in Corporate Center mainly reflected
fair value gains of CHF 545 million from movements in own credit
spreads in 2014 compared to fair value losses from movements in
own credit spreads of CHF 315 million in 2013 and gains on sales
of real estate of CHF 414 million in 2014 compared to CHF 68
million in 2013. The improvement in Corporate Center was partially
offset by a decrease in Private Banking & Wealth Management,
primarily reflecting the winding-down of non-strategic operations
during 2014, as well as lower gains from sales of businesses, and
higher negative net revenues in Investment Banking, reflecting the
recognition of qFVA of CHF 171 million, which was partially offset
by better results and lower funding costs from proactive manage-
ment of both our legacy debt instruments and trading assets.
Provision for credit losses of CHF 186 million reflected net
provisions of CHF 123 million in Private Banking & Wealth Man-
agement and CHF 61 million in Investment Banking.
Total operating expenses of CHF 22,397 million increased
4% compared to 2013, primarily reflecting 11% higher general and
administrative expenses. In our strategic businesses, total operat-
ing expenses were stable at CHF 18,184 million. In our non-stra-
tegic businesses, total operating expenses of CHF 4,213 million
increased 26% compared to 2013, reflecting a 37% increase in
general and administrative expenses, primarily driven by the litiga-
tion settlement charge of CHF 1,618 million relating to the final
settlement of all outstanding US cross-border matters.
Credit Suisse Group for further information on litigation.

Core Results
Strategic results

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
25,126
25,475
25,385
(1)
0
152
91
128
67
(29)
10,550
10,447
11,142
1
(6)
6,128
6,098
6,199
0
(2)
Commission expenses
1,506
1,666
1,621
(10)
3
7,634
7,764
7,820
(2)
(1)
18,184
18,211
18,962
0
(4)

before taxes
6,790
7,173
6,295
(5)
14
Income tax expense
1,774
2,031
1,458
(13)
39
Net income
5,016
5,142
4,837
(2)
6
54
47
34
15
38
4,962
5,095
4,803
(3)
6

18.3
19.9
–
–
–
Cost/income ratio
72.4
71.5
74.7
–
–
27.0
28.2
24.8
–
–

268,428
241,680
252,662
11
(4)
Total assets
887,450
821,607
860,136
8
(4)
1,138,450
1,030,749
–
10
–
1
2
Core Results reporting by region

in
% change

2014
2013
2012
14 / 13
13 / 12

Switzerland
6,750
7,224
7,400
(7)
(2)
EMEA
5,687
6,180
6,737
(8)
(8)
Americas
9,471
9,567
9,507
(1)
1
Asia Pacific
3,244
3,036
2,388
7
27
Corporate Center
663
(790)
(2,781)
–
(72)
Net revenues
25,815
25,217
23,251
2
8
Income/(loss) from continuing operations before taxes (CHF million)

Switzerland
2,326
2,463
2,544
(6)
(3)
EMEA
364
641
872
(43)
(26)
Americas
360
1,085
2,512
(67)
(57)
Asia Pacific
868
770
(151)
13
–
Corporate Center
(686)
(1,455)
(3,889)
(53)
(63)
3,232
3,504
1,888
(8)
86
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 Wealth Management Clients and Corporate & Institutional Clients, results are allocated based on the management reporting structure of our relationship manag-
ers and the region where the transaction is recorded. For Asset Management, results are allocated based on the location of the investment advisors and sales teams. 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.

62
The Core Results effective tax rate was 43.5% in 2014, com-
pared to 36.4% in 2013. The effective tax rate for full-year 2014
was mainly impacted by the geographical mix of results, the tax
benefits for audit closures and tax settlements, the recognition of
additional deferred tax assets relating to timing differences follow-
ing certain changes in Swiss GAAP as well as the reassessment
of deferred tax balances in Switzerland following the annual busi-
ness plan process. It also reflected changes in valuation allow-
ances against deferred tax assets mainly in the UK. In addition,
the tax rate was negatively affected by the impact of a change
in New York state tax law and reflected the impact relating to the
non-deductible portion for litigation provisions and litigation settle-
ments. Overall, net deferred tax assets increased CHF 239 million
to CHF 6,030 million during 2014.
u Refer to “Note 27 – Tax” in V – Consolidated financial statements – Credit
Suisse Group for further information.
In 2013, Core Results net income attributable to shareholders was
CHF 2,326 million, up 72% compared to 2012, and net revenues
of CHF 25,217 million increased 8% compared to 2012.
Strategic net revenues were stable at CHF 25,475 million
compared to 2012, with stable net revenues for Private Banking
& Wealth Management, reflecting higher transaction- and per-
formance-based revenues and higher recurring commissions and
fees offset by lower net interest income and other revenues. Stra-
tegic net revenues for Investment Banking were stable, reflecting
decreased revenues in fixed income sales and trading and advisory
revenues, offset by increased revenues in equity sales and trading
and debt and equity underwriting.
In our non-strategic businesses, negative net revenues of
CHF 258 million in 2013 improved from negative net revenues of
CHF 2,134 million in 2012. An improvement in Corporate Center
mainly reflected fair value losses of CHF 315 million from move-
ments in own credit spreads in 2013 compared to fair value losses
from movements in own credit spreads of CHF 2,939 million in
2012. Improved results in Investment Banking were driven by port-
folio valuation gains and lower funding costs, while a decrease in
Private Banking & Wealth Management reflected lower gains on
sales of businesses and lower fee-based revenues resulting from
those sales.
Provision for credit losses of CHF 167 million reflected net
provisions of CHF 152 million in Private Banking & Wealth Man-
agement and CHF 13 million in Investment Banking.
Total operating expenses of CHF 21,546 million increased
2% compared to 2012, primarily reflecting 19% higher general
and administrative expenses, partially offset by 9% lower com-
pensation and benefits. In our strategic businesses, total operat-
ing expenses of CHF 18,211 million decreased 4% from 2012,
mainly reflecting lower compensation and benefits, driven by lower
deferred compensation expense from prior-year awards and lower
salary expenses, reflecting lower headcount. In our non-strate-
gic businesses, total operating expenses of CHF 3,335 million
increased 49% from 2012, primarily reflecting higher general and
administrative expenses, partially offset by a decrease in com-
pensation and benefits. The increase in general and administra-
tive expenses was primarily due to substantially higher litigation
provisions in Investment Banking and Private Banking & Wealth
Management. In 2013, we recorded provisions of CHF 1,223 mil-
lion in connection with mortgage-related matters, including in con-
nection with the agreement with the FHFA on March 21, 2014 to
settle certain litigation relating to mortgage-backed securities, and
CHF 600 million in connection with the US cross-border matters,
including CHF 175 million in connection with the settlement with
the SEC in February 2014.
The Core Results effective tax rate was 36.4% in 2013,
compared to 24.6% in 2012. The effective tax rate for full-year
2013 was mainly impacted by the geographical mix of results, an
increase and a reassessment in deferred tax balances in Switzer-
land and also reflected changes in valuation allowances against
deferred tax assets mainly in the UK. In addition, the tax charge
was negatively affected by the impact of the change in UK cor-
poration tax from 23% to 20%. Overall, net deferred tax assets
decreased CHF 1,181 million to CHF 5,791 million during 2013.
Suisse Group for further information.

Core Results

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
689
(258)
(2,134)
–
(88)
34
76
42
(55)
81
760
774
1,125
(2)
(31)
3,453
2,561
1,106
35
132
4,213
3,335
2,231
26
49
Loss from continuing operations before taxes
(3,558)
(3,669)
(4,407)
(3)
(17)
Income tax benefit
(369)
(755)
(993)
(51)
(24)
Loss from continuing operations
(3,189)
(2,914)
(3,414)
9
(15)
102
145
(40)
(30)
–
Loss attributable to shareholders
(3,087)
(2,769)
(3,454)
11
(20)

15,820
24,423
31,448
(35)
(22)
Total assets
32,791
47,575
60,038
(31)
(21)
75,046
99,856
–
(25)
–
1
Information and developments
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 com-
ponent reflects the performance-based variable compensation for
the current year. The portion of the performance-based compen-
sation for the current year deferred through share-based and other
awards is expensed in future periods and is subject to vesting and
other conditions.
Our shareholders’ equity reflects the effect of share-based
compensation. Share-based compensation expense (which is gen-
erally based on qfair value at the time of grant) reduces equity;
however, the recognition of the obligation to deliver the shares
increases equity by a corresponding amount. Equity is generally
unaffected by the granting and vesting of share-based awards
and from the settlement of these awards through the issuance of
shares from approved conditional capital. The Group issues shares
from conditional capital to meet its obligations to deliver share-
based compensation awards. If Credit Suisse purchases shares
from the market to meet its obligation to employees, these pur-
chased treasury shares reduce equity by the amount of the pur-
chase price. Shareholders’ equity also includes, as additional paid-
in capital, the excess tax benefits/charges that arise at settlement
of share-based awards.
u Refer to “Compensation” in IV – Corporate Governance and Compensation for
u Refer to “Consolidated statements of changes in equity” and “Note 28 –
Employee deferred compensation” in V – Consolidated financial statements –
Credit Suisse Group for further information.
u Refer to “Tax benefits associated with share-based compensation” in Note 27
– Tax in V – Consolidated financial statements – Credit Suisse Group for further
information.
Personnel
Headcount at the end of 2014 was 45,800, down 200 from the
end of 2013. This reflected headcount reductions in connection
with our cost efficiency initiatives in Investment Banking and Pri-
vate Banking & Wealth Management, partially offset by graduate
hiring and contractor employee conversion.
u Refer to “Overview” in IV – Corporate Governance and Compensation – Cor-
porate Governance for additional information on personnel.

64
Overview of Core Results

Investment Banking

in / end of
2014
2013
2012
2014
2013
2012


Net revenues
12,637
13,442
13,474
12,515
12,565
12,558

123
152
182
61
13
(12)

4,984
5,331
5,561
5,649
5,435
6,070

4,768
3,914
3,209
4,090
4,477
3,551

Commission expenses
674
805
747
885
921
947

5,442
4,719
3,956
4,975
5,398
4,498

10,426
10,050
9,517
10,624
10,833
10,568

Income/(loss) from continuing operations before taxes
2,088
3,240
3,775
1,830
1,719
2,002

Income tax expense/(benefit)
–
–
–
–
–
–

–
–
–
–
–
–

–
–
–
–
–
–

Net income/(loss)
–
–
–
–
–
–

–
–
–
–
–
–

–
–
–
–
–
–


Return on regulatory capital
15.4
25.6
–
7.7
6.7
–

Cost/income ratio
82.5
74.8
70.6
84.9
86.2
84.2

16.5
24.1
28.0
14.6
13.7
15.9

Effective tax rate
–
–
–
–
–
–

Net income margin
–
–
–
–
–
–


108,261
95,507
96,665
159,815
155,290
170,855

Total assets
345,949
316,491
308,230
529,044
519,712
578,495

380,602
347,784
–
785,836
744,220
–

Net loans
238,124
215,713
207,702
34,402
31,319
34,501

Goodwill
2,314
2,164
2,409
6,330
5,835
5,980

1
Core Results include the results of our integrated banking business, excluding revenues and expenses in respect of noncontrolling interests without SEI.
2
3
4
Cost savings and strategy implementation
We continued to adapt our client-focused, capital-efficient strat-
egy to optimize our use of capital and improve our cost structure.
We target cost savings of more than CHF 4.5 billion by the end of
2015, of which about CHF 3.5 billion of adjusted annualized sav-
ings were delivered as of the end of 2014. This target is measured
against our annualized six month 2011 expense run rate measured
at constant foreign exchange rates and adjusted to exclude busi-
ness realignment and other significant non-operating expenses
and variable compensation expenses.
The majority of the targeted future savings is expected to be
realized from shared infrastructure and support services across the
Group, mainly through the rationalization of internal and external
services with front-to-back and regional optimization and more
effective demand management.
We have also targeted further savings within our two oper-
ating divisions. Within Private Banking & Wealth Management,
we expect to deliver cost benefits mainly from the wind-down of
non-strategic operations, the rationalization and further offshor-
ing of support functions, increasing automation and platform
consolidation.

Core Results

Corporate Center
Core Results 1
2014
2013
2012
2014
2013
2012
2014
2013
2012
2014
2013
2012

663
(790)
(2,781)
25,815
25,217
23,251
25,126
25,475
25,385
689
(258)
(2,134)
2
2
0
186
167
170
152
91
128
34
76
42
677
455
636
11,310
11,221
12,267
10,550
10,447
11,142
760
774
1,125
668
196
464
9,526
8,587
7,224
6,128
6,098
6,199
3,398
2,489
1,025
2
12
8
1,561
1,738
1,702
1,506
1,666
1,621
55
72
81
670
208
472
11,087
10,325
8,926
7,634
7,764
7,820
3,453
2,561
1,106
1,347
663
1,108
22,397
21,546
21,193
18,184
18,211
18,962
4,213
3,335
2,231
(686)
(1,455)
(3,889)
3,232
3,504
1,888
6,790
7,173
6,295
(3,558)
(3,669)
(4,407)
–
–
–
1,405
1,276
465
1,774
2,031
1,458
(369)
(755)
(993)
–
–
–
1,827
2,228
1,423
5,016
5,142
4,837
(3,189)
(2,914)
(3,414)
–
–
–
102
145
(40)
0
0
0
102
145
(40)
–
–
–
1,929
2,373
1,383
5,016
5,142
4,837
(3,087)
(2,769)
(3,454)
–
–
–
54
47
34
54
47
34
0
0
0
–
–
–
1,875
2,326
1,349
4,962
5,095
4,803
(3,087)
(2,769)
(3,454)

–
–
–
8.1 2
8.9 2
–
18.3 3
19.9 3
–
–
–
–
–
–
–
86.8
85.4
91.1
72.4
71.5
74.7
–
–
–
–
–
–
12.5
13.9
8.1
27.0
28.2
24.8
–
–
–
–
–
–
43.5
36.4
24.6
26.1
28.3
23.2
–
–
–
–
–
–
7.3
9.2
5.8
19.7
20.0
18.9
–
–
–

16,172
15,306
16,590
284,248
266,103
284,110
268,428
241,680
252,662
15,820
24,423
31,448
45,248
32,979
33,449
920,241
869,182
920,174
887,450
821,607
860,136
32,791
47,575
60,038
47,058 38,601 –
1,213,496
1,130,605
–
1,138,450
1,030,749
–
75,046
99,856
–
25
22
20
272,551
247,054
242,223
–
–
–
–
–
–
–
–
–
8,644
7,999
8,389
–
–
–
–
–
–
Within Investment Banking, we expect to deliver cost benefits
from infrastructure initiatives, continued progress on the restruc-
turing of our macro businesses and the exit of certain businesses.
We expect to incur approximately CHF 0.3 billion of costs
associated with these measures during the course of 2015. We
incurred CHF 608 million of business realignment costs and
CHF 293 million of IT architecture simplification expenses associ-
ated with these measures in 2014, compared to CHF 484 million
and CHF 128 million, respectively, in 2013.
In addition to the above cost saving targets for 2015, we are
targeting a further CHF 200 million of annualized cost savings to
be achieved by the end of 2017. We expect to incur CHF 200 mil-
lion of costs associated with these measures during the course of
2015 to 2017.
As of the end of 2014, total assets for the Group were
CHF 921.4 billion, up CHF 48.6 billion, or 6%, from 2013. Exclud-
ing the foreign exchange translation impact, total assets decreased
CHF 13.8 billion, reflecting measures taken in connection with our
announced balance sheet reduction initiative.
u Refer to “Strategy” in I – Information on the company for further information.

66
Key performance indicators
Our historical key performance indicators (KPIs) are provided in
the table below. Our stated KPIs are measured on the basis of
reported results. We believe the execution of our strategic initia-
tives, including the run-off of non-strategic operations, will enable
us to achieve our targets over a three to five year period across
market cycles.
u Refer to “Key performance indicators” in Private Banking & Wealth Manage-
ment and Investment Banking results for further information on divisional KPIs.
Collaboration revenues
Collaboration revenues are calculated as the percentage of the
Group’s net revenues represented by the aggregate collaboration
revenues arising when more than one of the Group’s divisions par-
ticipate in a transaction.
Additionally, within the Private Banking & Wealth Manage-
ment division, collaboration revenues include revenues arising from
cross-selling and client referral activities between the Wealth Man-
agement Clients and Corporate & Institutional Clients businesses
on the one hand and the Asset Management and the securities
trading and sales businesses on the other hand.
Collaboration revenues are measured by a dedicated gover-
nance structure and implemented through an internal revenue
sharing structure. Only the net revenues generated by a transac-
tion are considered. q Position risk related to trading revenues,
private equity and other investment-related gains, valuation adjust-
ments and centrally managed treasury revenues are not included
in collaboration revenues.
Our KPIs are targets to be achieved over a three- to five-year period across market cycles. Our KPIs are assessed annually as part of
our normal planning process and may be revised to reflect our strategic plan, the regulatory environment and market and industry trends.
in / end of
Target
2014
2013
2012
Growth (%)

Collaboration revenues
18–20% of net revenues
16.7
17.7
18.6
Efficiency and performance (%)

Total shareholder return (Credit Suisse) 1
Superior return vs peer group
(5.6)
26.0
4.8
Total shareholder return of peer group 1, 2
–
(0.7)
34.3
52.8
Return on equity attributable to shareholders
Above 15%
4.4
5.7
3.9
Core Results cost/income ratio
Below 70%
86.8
85.4
91.1
Capital (%)

Look-through CET1 ratio 3
11%
10.1
10.0
–
1
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 percent-
age of the share’s value as of the beginning of the period.
2
The peer group for this comparison comprises Bank of America, Barclays, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan Chase, Morgan Stanley, Nomura,
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.
3
Updated in the second quarter of 2014 from a previous target of a look-through Swiss Core Capital ratio above 10%.

For 2014, we reported income before taxes of CHF 2,088
million and net revenues of CHF 12,637 million.
In our strategic businesses, we reported income
before taxes of CHF 3,726 million and net revenues of
CHF 12,108 million. Compared to 2013, income before
taxes increased 3% with lower operating expenses partially
offset by lower net revenues. The decrease in net reve-
nues mainly reflected lower net interest income and sig-
nificantly lower performance fees, partially offset by higher
other revenues driven by a lower impairment related to an
equity investment, a gain on the sale of the local affluent
and upper affluent business in Italy and a gain related to
the partial sale of an investment in Euroclear. Operating
expenses were 5% lower, reflecting lower compensation
and benefits and slightly lower general and administrative
expenses from our ongoing efficiency measures.
In our non-strategic businesses, we reported a loss
before taxes of CHF 1,638 million, driven by the litigation
settlement charge of CHF 1,618 million relating to the final
settlement of all outstanding US cross-border matters. In
2013, we reported a loss before taxes of CHF 387 million,
including litigation provisions in connection with the US
cross-border matters, partially offset by gains from the sale
of former Asset Management businesses.
In 2014, assets under management for the division
were CHF 1,377.3 billion and we attracted net new assets
of CHF 28.2 billion.
Divisional results

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
12,637
13,442
13,474
(6)
0
12,108
12,434
12,343
(3)
1
529
1,008
1,131
(48)
(11)
123
152
182
(19)
(16)
4,984
5,331
5,561
(7)
(4)
4,768
3,914
3,209
22
22
Commission expenses
674
805
747
(16)
8
5,442
4,719
3,956
15
19
10,426
10,050
9,517
4
6
8,270
8,725
8,830
(5)
(1)
2,156
1,325
687
63
93
Income/(loss) before taxes
2,088
3,240
3,775
(36)
(14)
3,726
3,627
3,374
3
7
(1,638)
(387)
401
323
–

15.4
25.6
–
–
–
Cost/income ratio
82.5
74.8
70.6
–
–
16.5
24.1
28.0
–
–
Economic risk capital and return

Average economic risk capital (CHF million)
9,551
9,792
10,209
(2)
(4)
Pre-tax return on average economic risk capital (%) 2
22.4
33.7
37.6
–
–

Assets under management
1,377.3
1,282.4
1,250.8
7.4
2.5
Net new assets
28.2
32.1
10.8
(12.1)
197.2
Number of employees and relationship managers

26,100
26,000
27,300
0
(5)
Number of relationship managers
4,260
4,330
4,550
(2)
(5)
1
2
Calculated using a return excluding interest costs for allocated goodwill.

68
Net new assets growth rate – KPI (in %)
Wealth Management Clients and Asset Management
Target
6
9
3
0
(3)
2012 2013 2014
2.9
2.5
(2.6)
4.6
3.5
1.1
p Wealth Management Clients p Asset Management
Cost/income ratio – KPI (in %)
2012 2013 2014
Target
65
120
100
40
20
0
70.6 74.8
82.5
Divisional results (continued)

in / end of
% change

2014
2013
2012
14 / 13
13 / 12
Net revenue detail (CHF million)

Net interest income
3,924
4,252
4,551
(8)
(7)
Recurring commissions and fees
4,772
4,956
4,797
(4)
3
Transaction- and performance-based revenues
3,657
3,967
3,678
(8)
8
Other revenues 1
284
267
448
6
(40)
Net revenues
12,637
13,442 13,474
(6)
0
Provision for credit losses (CHF million)

New provisions
216
281
316
(23)
(11)
Releases of provisions
(93)
(129)
(134)
(28)
(4)
123
152 182
(19)
(16)

Net loans
238,124
215,713
207,702
10
4
   of which Wealth Management Clients
167,516
149,728
144,856
12
3
   of which Corporate & Institutional Clients
68,590
62,446
58,877
10
6
Deposits
303,576
288,770
276,571
5
4
219,490
208,210
203,376
5
2
80,291
74,459
65,849
8
13
1
Includes investment-related gains/(losses), equity participations and other gains/(losses) and fair value gains/(losses) on the Clock Finance transaction.
We target a divisional cost/income ratio of 65% for the Private
Banking & Wealth Management division. In 2014, the cost/income
ratio was 82.5%, up eight percentage points compared to 2013
and up twelve percentage points compared to 2012. The cost/
income ratio for our strategic results was 68.3% in 2014, down
two percentage points compared to 2013 and down three per-
centage points compared to 2012.
We also target net new asset growth of 6% for both the Wealth
Management Clients and Asset Management businesses. In 2014,
the growth rates in Wealth Management Clients and Asset Man-
agement were 3.5% and 1.1%, respectively.
u Refer to “Key performance indicators” in Core Results – Information and
developments for further information.


Strategic results
in / end of
2014
2013
2012
2014
2013
2012
2014
2013
2012

Net revenues
12,108
12,434
12,343
529
1,008
1,131
12,637
13,442
13,474
112
82
139
11
70
43
123
152
182
4,775
5,027
5,186
209
304
375
4,984
5,331
5,561
3,495
3,698
3,644
1,947
1,021
312
5,442
4,719
3,956
8,270
8,725
8,830
2,156
1,325
687
10,426
10,050
9,517
3,726 3,627
3,374
(1,638)
(387)
401
2,088
3,240
3,775
Balance sheet statistics (CHF billion)

Risk-weighted assets – Basel III
102,407
89,428
88,937
5,854
6,079
7,728
108,261
95,507
96,665
Total assets
335,382
295,799
284,263
10,567
20,692
23,967
345,949
316,491
308,230
369,355
326,195
–
11,247
21,589
–
380,602
347,784
–
Strategic results
Overview
Our strategic results comprise businesses from Wealth Man-
agement Clients, Corporate & Institutional Clients and Asset
Management.
In 2014, our strategic businesses reported income before taxes of
CHF 3,726 million and net revenues of CHF 12,108 million. Net
revenues were slightly lower compared to 2013, with lower net
interest income and lower transaction- and performance-based
revenues partially offset by higher other revenues. Recurring com-
missions and fees were stable. Provision for credit losses was
CHF 112 million in 2014, compared to CHF 82 million in 2013, on
a net loan portfolio of CHF 236 billion. Total operating expenses
were lower compared to 2013, reflecting lower compensation and
benefits, lower commission expenses and slightly lower general
and administrative expenses.
In 2013, our strategic businesses reported income before taxes of
CHF 3,627 million and net revenues of CHF 12,434 million. Net
revenues were stable compared to 2012, with higher transaction-
and performance-based revenues and higher recurring commis-
sions and fees offset by lower net interest income and lower other
revenues. Provision for credit losses was CHF 82 million in 2013,
compared to CHF 139 million in 2012, on a net loan portfolio of
CHF 212 billion. Total operating expenses were stable compared
to 2012, reflecting slightly lower compensation and benefits offset
by higher commission expenses.
Capital metrics
At the end of 2014, our strategic businesses reported q risk-
weighted assets under qBasel III of CHF 102 billion, an increase
of CHF 13 billion compared to the end of 2013. This increase was
driven by methodology changes, increases in risk levels due to
business growth and foreign exchange movements. Swiss lever-
age exposure was CHF 369 billion, reflecting an increase of 13%
compared to the end of 2013.

70
Strategic results

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Net interest income
3,870
4,155
4,438
(7)
(6)
4,601
4,554
4,329
1
5
3,587
3,818
3,482
(6)
10
Other revenues
50
(93)
94
–
–
Net revenues
12,108
12,434
12,343
(3)
1
New provisions
186
210
274
(11)
(23)
Releases of provisions
(74)
(128)
(135)
(42)
(5)
112
82
139
37
(41)
4,775
5,027
5,186
(5)
(3)
2,847
2,938
2,963
(3)
(1)
Commission expenses
648
760
681
(15)
12
3,495
3,698
3,644
(5)
1
8,270
8,725
8,830
(5)
(1)
Income before taxes
3,726
3,627
3,374
3
7
2,260
2,050
1,971
10
4
917
965
941
(5)
3
   of which Asset Management
549
612
462
(10)
32

29.0
30.7
–
–
–
Cost/income ratio
68.3
70.2
71.5
–
–
30.8
29.2
27.3
–
–

102,407
89,428
88,937
15
1
Total assets
335,382
295,799
284,263
13
4
369,355
326,195
–
13
–
1
Results detail
The following provides a comparison of our 2014 strategic results
versus 2013 and 2013 results versus 2012.
Net revenues
Net interest income includes a term spread credit on stable deposit
funding and a term spread charge on loans. Recurring commis-
sions and fees includes investment product management, discre-
tionary mandate and other asset management-related fees and
fees for general banking products and services. Transaction- and
performance-based revenues arise primarily from brokerage and
product issuing fees, foreign exchange fees from client transac-
tions, performance-based fees related to assets under manage-
ment and custody assets, trading and sales income, placement
fees, equity participations income and other transaction-based
income. Other revenues include investment-related gains and
losses and equity participations and other gains and losses.
2014 vs 2013: Down 3% from CHF 12,434 million to CHF 12,108 million
Net revenues were slightly lower with lower net interest income
and lower transaction- and performance-based revenues partially
offset by higher other revenues. In a low interest rate environ-
ment, lower net interest income primarily reflected significantly
lower deposit margins on slightly higher average deposit volumes,
partially offset by stable loan margins on higher average loan
volumes. Lower transaction- and performance-based revenues
reflected significantly lower performance fees and lower foreign
exchange client business, partially offset by higher corporate advi-
sory fees arising from integrated solutions revenues. Other rev-
enues increased, mainly reflecting a lower impairment related to
Asset Management Finance LLC (AMF) in 2014, the gain on the
sale of the local affluent and upper affluent business in Italy and
the gain related to the partial sale of our investment in Euroclear,
mostly recorded in Wealth Management Clients with the remainder
in Corporate & Institutional Clients. Recurring commissions and
fees were stable with higher discretionary mandate management
fees and higher investment account and services fees offset by
lower investment product management fees.

2013 vs 2012: Stable at CHF 12,434 million
Net revenues were stable, with higher transaction- and perfor-
mance-based revenues and higher recurring commissions and
fees offset by lower net interest income and lower other revenues.
Higher transaction- and performance-based revenues reflected
higher revenues across all major revenue categories, primarily
higher performance fees and carried interest as well as higher
brokerage and product issuing fees. Higher recurring commis-
sions and fees mainly reflected higher investment account and
service fees as well as higher asset management fees. Lower net
interest income reflected significantly lower deposit margins and
stable loan margins on higher average deposit and loan volumes.
Other revenues decreased mainly due to a decrease in invest-
ment-related gains and equity participations gains, mainly due to a
gain of CHF 45 million in 2012 from the sale of Wincasa.
The Wealth Management Clients loan portfolio is substantially
comprised of residential mortgages in Switzerland and loans col-
lateralized by securities. Our Corporate & Institutional Clients loan
portfolio has relatively low concentrations and is mainly secured by
mortgages, securities and other financial collateral.
2014 vs 2013: Up 37% from CHF 82 million to CHF 112 million
Wealth Management Clients recorded net provisions of CHF 60
million and Corporate & Institutional Clients recorded net provi-
sions of CHF 52 million. The increase in provision for credit losses
compared to 2013 is mainly due to higher releases of provisions
in 2013 in Corporate & Institutional Clients. The net loan portfolio
increased from CHF 212.2 billion to CHF 236.1 billion.
2013 vs 2012: Down 41% from CHF 139 million to CHF 82 million
Provision for credit losses of CHF 82 million was down CHF 57
million compared to 2012. Provision for credit losses reflected net
provisions of CHF 78 million in Wealth Management Clients and
CHF 4 million in Corporate & Institutional Clients.
Operating expenses
Lower compensation and benefits mainly reflected lower salary
expenses as a result of the ongoing cost efficiency measures.
Compensation and benefits decreased slightly, driven by lower sal-
ary expenses, reflecting lower headcount.
Slightly lower general and administrative expenses mainly reflected
lower infrastructure and occupancy expenses and slightly lower
travel and entertainment expenses, partially offset by higher pro-
fessional services fees and higher litigation provisions.
General and administrative expenses were stable and included
higher expense provisions, higher professional services and lower
travel and entertainment expenses.
Net revenues
Net interest income
The decrease in net interest income reflected significantly lower
deposit margins on stable average deposit volumes, slightly lower
loan margins on higher average loan volumes and lower levels of
deposits eligible as stable funding.
The decrease in net interest income reflected significantly lower
deposit margins on slightly higher average deposit volumes and
slightly lower loan margins on higher average loan volumes.
Recurring commissions and fees were stable with higher discre-
tionary mandate management fees and higher investment account
and services fees offset by lower investment product management
fees.
2013 vs 2012: Up 5% from CHF 2,811 million to CHF 2,956 million
The increase reflected higher revenues across all major revenue
categories, primarily higher investment account and services fees,
driven by higher investment advisory fees and higher security
account fees.
Transaction- and performance-based revenues were stable with
significantly higher corporate advisory fees, higher placement and
transaction fees and higher brokerage and product issuing fees,
offset by lower foreign exchange client business and significantly
lower performance fees from Hedging-Griffo.
Higher transaction- and performance-based revenues reflected
higher brokerage and product issuing fees, primarily in equities
and funds, higher equity participations income and higher foreign
exchange client business.

72
Results – Wealth Management Clients

in
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
8,286
8,444
8,475
(2)
0
60
78
110
(23)
(29)
5,966
6,316
6,394
(6)
(1)
Income before taxes
2,260
2,050
1,971
10
4

Cost/income ratio
72.0
74.8
75.4
–
–
27.3
24.3
23.3
–
–

Net interest income
2,784
3,050
3,268
(9)
(7)
2,967
2,956
2,811
0
5
2,442
2,438
2,355
0
4
Other revenues
93 1
0
41 2
–
(100)
Net revenues
8,286
8,444 8,475
(2)
0
Gross and net margin on assets under management (bp)

Net interest income
33
38
44
–
–
36
38
38
–
–
29
31
32
–
–
Other revenues
1
0
0
–
–
Gross margin 3
99
107 114
–
–
Net margin 4
27
26 27
–
–

Switzerland
1,670
1,590
1,630
5
(2)
EMEA
1,030
1,180
1,300
(13)
(9)
Americas
540
560
620
(4)
(10)
Asia Pacific
490
440
440
11
0
3,730
3,770 3,990
(1)
(6)
1
Reflects a gain on the sale of the local affluent and upper affluent business in Italy and a gain related to the partial sale of an investment in Euroclear.
2
Reflects gains related to the sale of a business from the integration of Clariden Leu in 2012.
3
Net revenues divided by average assets under management.
4
Income before taxes divided by average assets under management.
Gross margin
Our gross margin was 99 basis points in 2014, eight basis points
lower compared to 2013, mainly reflecting a 5.7% increase in
average assets under management and the continued adverse
interest rate environment.
Net margin
Our net margin was 27 basis points in 2014, one basis point
higher compared to 2013, reflecting lower operating expenses and
the gains from the sales, partially offset by the 5.7% increase in
average assets under management and lower net interest income.

Assets under management – Wealth Management Clients

in / end of
% change

2014
2013
2012
14 / 13
13 / 12
Assets under management by region (CHF billion)

Switzerland
290.0
270.9
243.5
7.1
11.3
EMEA
244.5
231.3
243.2
5.7
(4.9)
Americas
196.5
172.9
164.5
13.6
5.1
Asia Pacific
143.5
115.6
106.8
24.1
8.2
874.5
790.7
758.0
10.6
4.3
Average assets under management (CHF billion)

Average assets under management
833.0
788.2
741.2
5.7
6.3
Assets under management by currency (CHF billion)

USD
361.4
306.1
286.4
18.1
6.9
EUR
153.6
152.6
149.0
0.7
2.4
CHF
194.9
187.1
184.6
4.2
1.4
Other
164.6
144.9
138.0
13.6
5.0
874.5
790.7
758.0
10.6
4.3
Net new assets by region (CHF billion)

Switzerland
5.7
0.9
2.3
–
(60.9)
EMEA
1.9
1.8
(2.0)
5.6
–
Americas
2.6
4.7
10.2
(44.7)
(53.9)
Asia Pacific
17.3
11.5
10.1
50.4
13.9
Net new assets
27.5
18.9
20.6
45.5
(8.3)
Growth in assets under management (CHF billion)

Net new assets
27.5
18.9
20.6
–
–
Other effects
56.3
13.8
27.9
–
–
   of which market movements
22.9
40.2
47.4
–
–
   of which currency
39.0
(17.6)
(12.4)
–
–
   of which other
(5.6)
(8.8)
(7.1)
–
–
Growth in assets under management
83.8
32.7
48.5
–
–
Growth in assets under management (%)

Net new assets
3.5
2.5
2.9
–
–
Other effects
7.1
1.8
3.9
–
–
10.6 4.3 6.8
–
–

74
Net revenues
Net interest income
The decrease reflected significantly lower deposit margins on
higher average deposit volumes, partially offset by higher loan
margins on higher average loan volumes.
The decrease reflected significantly lower deposit margins and
higher loan margins on higher average deposit and loan volumes.
The increase reflected slightly higher banking services and higher
discretionary mandate management fees, partially offset by lower
investment product management fees, mainly from lower funds
management fees.
2013 vs 2012: Stable at CHF 451 million
Recurring commissions and fees were stable. Higher investment
account and services fees, primarily from custody services, were
offset by lower investment product management fees, mainly from
lower funds management fees.
Transaction- and performance-based revenues were stable with
higher corporate advisory fees offset by lower sales and trading
income.
Stable transaction- and performance-based revenues reflected
higher foreign exchange client business, offset by lower revenues
from integrated solutions and lower sales and trading income.
Results – Corporate & Institutional Clients

in
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
1,973
1,996
2,064
(1)
(3)
52
4
29
–
(86)
1,004
1,027
1,094
(2)
(6)
Income before taxes
917
965
941
(5)
3

Cost/income ratio
50.9
51.5
53.0
–
–
46.5
48.3
45.6
–
–

Net interest income
1,086
1,105
1,170
(2)
(6)
460
451
448
2
1
453
455
457
0
0
Other revenues 1
(26) 2
(15)
(11) 3
73
36
Net revenues
1,973
1,996 2,064
(1)
(3)

Number of relationship managers (Switzerland)
530
560 560
(5)
0
1
Includes fair value losses of CHF 35 million, CHF 15 million and CHF 35 million on the Clock Finance transaction in 2014, 2013 and 2012, respectively.
2
Includes a gain of CHF 9 million related to the partial sale of an investment in Euroclear.
3
Includes gains of CHF 25 million related to a recovery case.

Asset Management
Net revenues
Fee-based revenues
The decrease reflected significantly lower performance fees from
Hedging-Griffo and lower performance fees from single manager
hedge funds, partially offset by higher equity participations income
and slightly higher asset management fees driven by higher fees
from our alternatives business.
The increase primarily reflected higher performance fees, asset
management fees and private equity placement fees. Higher per-
formance fees were recognized primarily from single manager
hedge funds and Hedging-Griffo. The higher asset management
fees, primarily in our alternatives business, reflected higher aver-
age assets under management driven in part by net new assets of
CHF 15.0 billion for 2013.
Results – Asset Management

in
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
1,849
1,994
1,804
(7)
11
0
0
0
–
–
1,300
1,382
1,342
(6)
3
Income before taxes
549
612
462
(10)
32

Cost/income ratio
70.3
69.3
74.4
–
–
29.7
30.7
25.6
–
–

1,174
1,147
1,070
2
7
692
925
670
(25)
38
Other revenues
(17)
(78)
64
(78)
–
Net revenues
1,849
1,994 1,804
(7)
11
Net revenue detail by type (CHF million)

Asset management fees
1,174
1,147
1,070
2
7
Placement, transaction and other fees
262
284
223
(8)
27
Performance fees and carried interest
309
542
346
(43)
57
Equity participations income
73
44
36
66
22
Fee-based revenues
1,818
2,017
1,675
(10)
20
Investment-related gains/(losses)
21
52
139
(60)
(63)
Equity participations and other gains/(losses)
(1)
(86)
(7)
(99)
–
Other revenues 1
11
11
(3)
0
–
Net revenues
1,849
1,994
1,804
(7)
11
Fee-based margin on assets under management (bp)

Fee-based margin 2
48
58
52
–
–
1
Includes allocated funding costs.
2
Fee-based revenues divided by average assets under management.

76
Investment-related gains/(losses)
The gains of CHF 21 million reflected gains in hedge fund invest-
ments and the real estate sector.
The gains of CHF 52 million in 2013 and CHF 139 million in 2012
primarily reflected gains in hedge fund investments and the real
estate sector.
Equity participations and other gains/(losses)
2014 vs 2013: Up from CHF (86) million to CHF (1) million
In 2014, we recognized impairments of CHF 4 million related to
AMF, partially offset by a gain from the sale of an equity stake in a
joint venture. In 2013 we recognized impairments of CHF 86 mil-
lion related to AMF.
2013 vs 2012: Down from CHF (7) million to CHF (86) million
In 2013, we recognized impairments of CHF 86 million related to
AMF. The loss of CHF 7 million in 2012 primarily reflected impair-
ment charges of CHF 61 million related to AMF, partially offset by
a gain of CHF 45 million from the sale of Wincasa.
Assets under management – Asset Management

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Hedge funds
27.8
29.8
24.8
(6.7)
20.2
Private equity
1.2
0.6
0.4
100.0
50.0
Real estate & commodities
51.5
50.5
48.6
2.0
3.9
Credit
38.0
30.0
23.8
26.7
26.1
Index strategies
88.7
75.1
64.0
18.1
17.3
Multi-asset class solutions
108.8
104.0
103.1
4.6
0.9
Fixed income & equities
53.0
54.4
55.2
(2.6)
(1.4)
Other
19.5
7.9
5.4
146.8
46.3
Assets under management 1
388.5
352.3
325.3
10.3
8.3

375.4
346.3
320.1
8.4
8.2
Assets under management by currency (CHF billion)

USD
91.9
74.9
63.0
22.7
18.9
EUR
50.0
50.5
42.2
(1.0)
19.7
CHF
213.0
196.4
192.9
8.5
1.8
Other
33.6
30.5
27.2
10.2
12.1
388.5
352.3
325.3
10.3
8.3

Net new assets 2
3.7
15.0
(8.3)
–
–
Other effects
32.5
12.0
14.6
–
–
   of which market movements
19.1
17.7
24.2
–
–
   of which currency
9.5
(5.5)
(4.6)
–
–
   of which other
3.9
(0.2)
(5.0)
–
–
36.2
27.0 6.3
–
–

Net new assets
1.1
4.6
(2.6)
–
–
Other effects
9.2
3.7
4.6
–
–
10.3
8.3
2.0
–
–
Principal investments (CHF billion)

Principal investments
1.3
0.9
1.1
44.4
(18.2)
1
Excludes our portion of assets under management from our equity participation in Aberdeen.
2
Includes outflows for private equity assets reflecting realizations at cost and unfunded commitments on which a fee is no longer earned.

Overview
Our non-strategic businesses for Private Banking & Wealth Man-
agement include positions relating to the restructuring of the for-
mer Asset Management division, run-off operations relating to our
small markets exit initiative and certain legacy cross-border related
run-off operations, litigation costs, primarily related to the final set-
tlement of all outstanding US cross-border matters, other smaller
non-strategic positions formerly in our Corporate & Institutional
Clients business and the run-off and active reduction of selected
products. Furthermore, it comprises certain remaining operations
that we continue to wind-down relating to our domestic private
banking business booked in Germany, which we sold in 2014.
For 2014, our non-strategic businesses reported a loss before
taxes of CHF 1,638 million compared to a loss before taxes of
CHF 387 million in 2013. Net revenues of CHF 529 million were
significantly lower than the CHF 1,008 million reported in 2013,
reflecting the winding-down of non-strategic operations during
the course of the year. Provision for credit losses was CHF 11
million in 2014, compared to CHF 70 million in 2013, on a net
loan portfolio of CHF 2 billion. Total operating expenses in 2014
were higher than in 2013, mainly driven by the litigation settlement
charge of CHF 1,618 million relating to the final settlement of all
outstanding US cross-border matters in May 2014.
For 2013, our non-strategic businesses reported a loss before
taxes of CHF 387 million compared to income before taxes of
CHF 401 million in 2012. Net revenues of CHF 1,008 million were
11% lower than the CHF 1,131 million reported in 2012, reflecting
lower gains on sale of businesses and lower fee-based revenues
resulting from those sales. Provision for credit losses was CHF 70
million in 2013, compared to CHF 43 million in 2012, on a net loan
portfolio of CHF 4 billion. Total operating expenses in 2013 were
higher than in 2012, mainly reflecting substantially higher litigation
provisions of CHF 600 million in connection with the US cross-
border matters, including CHF 175 million in connection with the
settlement with the SEC in February 2014.
Capital metrics
At the end of 2014, our non-strategic businesses reported
qrisk-weighted assets under qBasel III of CHF 6 billion, a slight
decrease compared to the end of 2013, reflecting a decrease of
CHF 2 billion due to the continued progress in winding down the
non-strategic portfolio offset by an external methodology impact of
CHF 2 billion in the first quarter of 2014. Swiss leverage exposure
was CHF 11 billion, reflecting a decrease of 50% compared to the
end of 2013.

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
529
1,008
1,131
(48)
(11)
11
70
43
(84)
63
209
304
375
(31)
(19)
1,947
1,021
312
91
227
2,156
1,325
687
63
93
(1,638)
(387)
401
323
–
Revenue details (CHF million)

Restructuring of select onshore businesses
169
164
148
3
11
Legacy cross-border business and small markets
158
203
209
(22)
(3)
Restructuring of former Asset Management division
155
534
659
(71)
(19)
Other
47
107
115
(56)
(7)
Net revenues
529
1,008
1,131
(48)
(11)

5,854
6,079
7,728
(4)
(21)
Total assets
10,567
20,692
23,967
(49)
(14)
11,247
21,589
–
(48)
–

78
Results detail
The following provides a comparison of our 2014 non-strategic
results versus 2013 and 2013 results versus 2012.
Net revenues
2014 vs 2013: Down 48% from CHF 1,008 million to CHF 529 million
The significant decrease primarily reflected the winding-down of
non-strategic operations during 2014, as well as lower gains from
sales of businesses. In 2014, we recognized a gain of CHF 109
million on the sale of our domestic private banking business
booked in Germany and a gain of CHF 91 million on the sale of
CFIG, our private equity fund of funds and co-investment busi-
ness, compared with gains in 2013 of CHF 146 million on the sale
of our exchange-traded funds (ETF) business, CHF 91 million on
the sale of Strategic Partners, our secondary private equity busi-
ness, and CHF 28 million from the sale of JO Hambro.
The decrease primarily reflected lower recurring commissions and
fees and lower transaction- and performance-based revenues,
reflecting the impact of sales of non-strategic businesses during
2013 and lower gains from sales of businesses, partially offset by
significantly higher investment-related gains. We recognized gains
of CHF 146 million on the sale of our ETF business, CHF 91 mil-
lion on the sale of Strategic Partners, our secondary private equity
business, and CHF 28 million from the sale of JO Hambro during
the year, compared with a gain of CHF 384 million in 2012 from
the sale of our remaining ownership interest in Aberdeen. Invest-
ment-related gains of CHF 128 million were significantly higher
than the CHF 16 million recorded in 2012, which included losses
of CHF 82 million in connection with the planned sale of certain
private equity investments.
Operating expenses
Higher operating expenses were driven by the litigation settlement
charge of CHF 1,618 million relating to the final settlement of all
outstanding US cross-border matters. We also had lower com-
pensation and benefits, lower professional services fees and lower
commission expenses resulting from the winding-down of non-
strategic operations in 2014.
2013 vs 2012: Up 93% from CHF 687 million to CHF 1,325 million
Higher operating expenses reflected substantially higher litigation
provisions of CHF 600 million in connection with the US cross-
border matters, including CHF 175 million in connection with the
settlement with the SEC in February 2014. We also had higher
professional services fees resulting from the sale of former Asset
Management businesses, partially offset by lower commission and
compensation and benefits relating to the sales. We also recog-
nized a goodwill impairment of CHF 12 million resulting from the
creation of the non-strategic reporting unit in the fourth quarter of
2013.

2014
In 2014, assets under management of CHF 1,377.3 billion
increased 7.4% compared to the end of 2013, primarily reflect-
ing favorable exchange-related movements, positive market move-
ments and net new assets of CHF 28.2 billion, partially offset by
structural effects, primarily from the sales of businesses.
In our strategic portfolio, Wealth Management Clients con-
tributed net new assets of CHF 27.5 billion, primarily with inflows
from emerging markets and our qultra-high-net-worth individual
(UHNWI) client segment, partially offset by Western European
cross-border outflows. Corporate & Institutional Clients in Switzer-
land reported net new assets of CHF 5.5 billion. Asset Manage-
ment reported net new assets of CHF 3.7 billion, with inflows from
a joint venture in emerging markets and in index and credit prod-
ucts partially offset by outflows of CHF 9.2 billion of assets that
resulted from the change of management of funds from Hedging-
Griffo to a new venture in Brazil, Verde Asset Management, in
which we have a significant investment, and outflows in traditional
products. Assets under management continued to reflect a risk-
averse asset mix, with investments in less complex, lower-margin
products and a significant portion of assets in cash and money
market products.
In our non-strategic portfolio, assets under management
declined 75.7% to CHF 10.8 billion mainly reflecting the sale of
CFIG and of our domestic private banking business booked in
Germany.
2013
In 2013, assets under management of CHF 1,282.4 billion
increased 2.5% compared to the end of 2012, reflecting net new
assets of CHF 32.1 billion and positive market movements, par-
tially offset by adverse foreign exchange-related movements and
structural effects, primarily from the sales of businesses.
In our strategic portfolio, Wealth Management Clients contrib-
uted net new assets of CHF 18.9 billion, particularly from inflows
from emerging markets and our UHNWI client segment, partially
offset by Western European cross-border outflows. Corporate &
Institutional Clients in Switzerland reported strong net new assets
of CHF 8.8 billion. Asset Management reported significant net
new assets of CHF 15.0 billion, mainly from credit, index strate-
gies and hedge fund products, partially offset by outflows from
fixed income. Assets under management continued to reflect a
risk-averse asset mix, with investments in less complex, lower-
margin products and a significant portion of assets in cash and
money market products.
declined 47.6% to CHF 44.4 billion, mainly reflecting the sale of
our ETF and secondary private equity businesses.
Assets under management – Private Banking & Wealth Management

in / end of
% change

2014
2013
2012
14 / 13
13 / 12
Assets under management by business (CHF billion)

874.5
790.7
758.0
10.6
4.3
275.9
250.0
223.8
10.4
11.7
Asset Management
388.5
352.3
325.3
10.3
8.3
Non-strategic
10.8
44.4
84.7
(75.7)
(47.6)
Assets managed across businesses 1
(172.4)
(155.0)
(141.0)
11.2
9.9
1,377.3
1,282.4
1,250.8
7.4
2.5

1,328.5
1,291.2
1,224.7
2.9
5.4
Net new assets by business (CHF billion)

27.5
18.9
20.6
45.5
(8.3)
5.5
8.8
1.5
(37.5)
486.7
Asset Management
3.7
15.0
(8.3)
(75.3)
–
Non-strategic
(8.2)
(5.9)
(2.1)
39.0
181.0
(0.3)
(4.7)
(0.9)
(93.6)
422.2
Net new assets
28.2
32.1
10.8
(12.1)
197.2
1
Assets managed by Asset Management for Wealth Management Clients, Corporate & Institutional Clients and non-strategic businesses.

80
Investment Banking
For 2014, total Investment Banking income before taxes
was CHF 1,830 million on net revenues of CHF 12,515
million. We improved the profitability of Investment Banking
on stable revenues and increased capital efficiency, reflect-
ing the consistency and stability of our diversified franchise.
Our strategic businesses reported income before taxes of
CHF 3,744 million and net revenues of CHF 13,087 million.
Our non-strategic businesses reported a loss before
taxes of CHF 1,914 million, and negative net revenues of
CHF 572 million.
We made continued progress in improving capital
efficiency in 2014, reducing Swiss leverage exposure by
USD 42 billion to USD 794 billion. We also reduced Basel III
risk-weighted assets by USD 13 billion to USD 161 billion
compared to year-end 2013.
Divisional results

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
12,515
12,565
12,558
0
0
13,087
13,096
13,277
0
(1)
(572)
(531)
(719)
8
(26)
61
13
(12)
369
–
5,649
5,435
6,070
4
(10)
4,090
4,477
3,551
(9)
26
Commission expenses
885
921
947
(4)
(3)
4,975
5,398 4,498
(8)
20
10,624
10,833 10,568
(2)
3
9,305
9,195
9,833
1
(6)
1,319
1,638
735
(19)
123
1,830
1,719 2,002
6
(14)
3,744
3,894
3,455
(4)
13
(1,914)
(2,175)
(1,453)
(12)
50

7.7
6.7
–

Cost/income ratio
84.9
86.2
84.2
–
–
14.6
13.7
15.9
–
–
Economic risk capital and return

Average economic risk capital (CHF million)
20,605
19,298
19,357
7
–
Pre-tax return on average economic risk capital (%) 2
9.4
9.4
11.0
–
–

Number of employees
19,400
19,700
19,800
(2)
(1)
1
Calculated using income after tax denominated in USD; assumes tax rate of 30% in 2014 and 26% in 2013 and capital allocated based on average of 10% of average risk-weighted assets
2
Calculated using a return excluding interest costs for allocated goodwill.

Investment Banking
Cost/income ratio – KPI (in %)
Investment Banking
2012 2013 2014
Target
70
120
100
40
20
0
84.2 86.2 84.9
Divisional results (continued)

in
% change

2014
2013
2012
14 / 13
13 / 12

Debt underwriting
1,777
1,902
1,617
(7)
18
Equity underwriting
870
766
552
14
39
Total underwriting
2,647
2,668
2,169
(1)
23
Advisory and other fees
748
658
1,042
14
(37)
Total underwriting and advisory
3,395
3,326
3,211
2
4
Fixed income sales and trading
4,967
4,823
5,349
3
(10)
Equity sales and trading
4,591
4,750
4,330
(3)
10
Total sales and trading
9,558
9,573
9,679
0
(1)
Other
(438)
(334)
(332)
31
1
Net revenues
12,515
12,565 12,558
0
0
Average one-day, 98% risk management Value-at-Risk (CHF million)

Interest rate
12
18
27
(33)
(33)
Credit spread
32
35
46
(9)
(24)
Foreign exchange
10
9
15
11
(40)
Commodity
2
2
3
0
(33)
Equity
19
16
23
19
(30)
Diversification benefit
(32)
(39)
(59)
(18)
(34)
Average one-day, 98% risk management Value-at-Risk
43
41 55
5
(25)
We target a divisional cost/income ratio of 70% for the Investment
Banking division. The cost/income ratio was 84.9% in 2014, com-
pared to 86.2% in 2013 and 84.2% in 2012. The cost/income
ratio for our strategic results was 71.1% in 2014, compared to
70.2% in 2013 and 74.1% in 2012.
u Refer to “Key performance indicators” in Core Results for further information.

82

Strategic results
Investment Banking
in / end of
2014
2013
2012
2014
2013
2012
2014
2013
2012

Net revenues
13,087
13,096
13,277
(572)
(531)
(719)
12,515
12,565
12,558
38
7
(11)
23
6
(1)
61
13
(12)
5,494
5,267
5,808
155
168
262
5,649
5,435
6,070
3,811
3,928
4,025
1,164
1,470
473
4,975
5,398
4,498
9,305
9,195
9,833
1,319
1,638
735
10,624
10,833
10,568
3,744 3,894
3,455
(1,914)
(2,175)
(1,453)
1,830
1,719
2,002
Balance sheet statistics (CHF million, except where indicated)

149,849
136,946
147,135
9,966
18,344
23,720
159,815
155,290
170,855
Risk-weighted assets – Basel III (USD)
151,420
153,898
160,785
10,070
20,615
25,921
161,490
174,513
186,706
Total assets
506,820
492,829
542,424
22,224
26,883
36,071
529,044
519,712
578,495
722,037
665,953
–
63,799
78,267
–
785,836
744,220
–
Swiss leverage exposure (USD)
729,607
748,388
–
64,468
87,955
–
794,075
836,343
–
Strategic results
OVERVIEW
The Investment Banking division delivered consistent results in
2014 on stable revenues and lower capital usage, reflecting the
strength of our diversified franchise. For 2014, our strategic busi-
nesses reported income before taxes of CHF 3,744 million com-
pared to income before taxes of CHF 3,894 million in 2013. Net
revenues were CHF 13,087 million compared to CHF 13,096 mil-
lion in 2013.
In 2014, strategic revenues reflected the recognition of q FVA
of CHF 108 million. Revenues were stable as higher results in
our fixed income sales and trading and underwriting and advisory
franchises were offset by lower results in equity sales and trad-
ing. Fixed income sales and trading revenues increased 4% com-
pared to 2013, driven by continued momentum in our securitized
products franchise and a rebound in emerging markets revenues.
Equity sales and trading revenues declined 5%, reflecting less
favorable trading conditions, such as low volumes and low levels of
volatility in the year and following strong 2013 performance. The
declines were partially offset by higher revenues in prime services,
reflecting a strong market share, continued portfolio optimization
and increased trading and clearing activity. qDerivatives revenues
were also robust, reflecting strong client activity and our strategy
to diversify the business across products and regions. Underwrit-
ing and advisory results increased slightly, reflecting strong equity
underwriting issuance, particularly initial public offerings (IPO), and
higher mergers and acquisitions (M&A) activity, mostly offset by
lower debt underwriting results.
Total operating expenses of CHF 9,305 million were stable
compared to 2013. Compensation and benefits increased 4%
to CHF 5,494 million, reflecting higher deferred compensation
expense from prior-year awards and higher discretionary compen-
sation expenses. Total other operating expenses of CHF 3,811 mil-
lion were down 3% compared to 2013.
For 2013, our strategic business reported income before taxes
of CHF 3,894 million compared to CHF 3,455 million in 2012.
Results were stronger compared to 2012, reflecting higher rev-
enues in equity sales and trading and underwriting and advisory
franchises. Revenues in our strategic businesses were slightly
lower as strong performance in our equities, credit and under-
writing franchises were offset by lower rates and advisory results.
Fixed income sales and trading revenues declined 14% compared
to 2012, reflecting difficult trading conditions across most fixed
income businesses.
Equity sales and trading revenues increased 13%, reflecting
continued market leadership and increased client activity notwith-
standing reduced capital usage. Underwriting and advisory results
increased, reflecting significantly higher debt and equity underwrit-
ing results. These increases were partially offset by significantly
lower advisory revenues, reflecting a decline in the total industry
M&A fee pool.
Total operating expenses were CHF 9,195 million, down 6%
from 2012. Compensation and benefits of CHF 5,267 million
decreased by 9%, from 2012. Total other operating expenses of
CHF 3,928 million were down 2% compared to 2012.

Investment Banking
Strategic results

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Debt underwriting
1,777
1,902
1,617
(7)
18
Equity underwriting
870
765
552
14
39
Total underwriting
2,647
2,667
2,169
(1)
23
749
658
1,042
14
(37)
Total underwriting and advisory
3,396
3,325
3,211
2
4
5,457
5,232
6,113
4
(14)
4,625
4,847
4,285
(5)
13
Total sales and trading
10,082
10,079
10,398
0
(3)
Other
(391)
(308)
(332)
27
(7)
Net revenues
13,087
13,096
13,277
0
(1)
38
7
(11)
443
–
5,494
5,267
5,808
4
(9)
2,957
3,048
3,109
(3)
(2)
Commission expenses
854
880
916
(3)
(4)
3,811
3,928
4,025
(3)
(2)
9,305
9,195
9,833
1
(6)
Income before taxes
3,744
3,894
3,455
(4)
13

16.8
17.3
–
–
–
Cost/income ratio
71.1
70.2
74.1
–
–
28.6
29.7
26.0
–
–

149,849
136,946
147,135
9
(7)
151,420
153,898
160,785
(2)
(4)
Total assets
506,820
492,829
542,424
3
(9)
722,037
665,953
–
8
–
729,607
748,388
–
(3)
–
1
Calculated using income after tax denominated in USD; assumes tax rate of 30% in 2014 and 28% in 2013 and capital allocated based on average of 10% of average risk-weighted assets
Capital metrics
Investment Banking made continued progress in improving capi-
tal efficiency. As of the end of 2014, our strategic businesses
reported qrisk-weighted assets under qBasel III of USD 151 bil-
lion and Swiss leverage exposure of USD 730 billion. As of the
end of 2013, we reported risk-weighted assets under Basel III of
USD 154 billion and Swiss leverage exposure of USD 748 billion.

84
The following provides a comparison of our strategic 2014 results
versus 2013 and 2013 results versus 2012. Share of wallet refers
to our share of the overall fee pool for the respective products.
Net revenues
Debt underwriting
The decrease was primarily driven by weakness in structured lend-
ing in emerging markets and lower revenues from our investment
grade business. Leveraged finance revenues were stable.
The increase was driven by higher revenues in emerging markets,
particularly in structured lending. We also had higher investment
grade revenues, driven by market share gains and strong lever-
aged finance results, as robust high yield industry-wide issuance
volumes offset lower market share.
Equity underwriting
The increase was driven by higher revenues from IPOs, reflecting
higher global industry-wide issuance activity. We also had higher
revenues from follow-on offerings as an increase in the related fee
pool, partially offset by a decrease in our share of wallet. Convert-
ible revenues also increased, reflecting an increase both in the
related fee pool and our share of wallet.
The improvement was driven by strong performance across most
major equity markets. We had significantly higher revenues from
IPOs and follow-on offerings, as higher industry-wide issuance
activity more than offset lower market share for both products.
We had higher revenues, reflecting an increase in the overall M&A
fee pool and more favorable market conditions.
2013 vs 2012: Down 37% from CHF 1,042 million to CHF 658 million
The decrease was primarily due to significantly lower M&A fees
reflecting a decline in the total industry fee pool, which more than
offset higher completed M&A market share and higher completed
M&A volumes.
We had higher revenues primarily driven by strong performance
in securitized products, reflecting growth across trading and origi-
nation from our efforts to diversify the franchise. Emerging mar-
kets revenues rebounded, reflecting higher financing client activity
across regions. This increase was partially offset by lower rev-
enues in global macro products as subdued client activity and low
volatility in the first half of the year offset improved trading condi-
tions in the second half of the year. We also had lower revenues
in our credit franchise as lower leveraged finance origination activ-
ity, due to increased market volatility, resulted in weaker trading
performance. Our results also include the adverse impact of the
recognition of FVA of CHF 95 million in the fourth quarter of 2014.
Fixed income sales and trading revenues declined significantly,
reflecting difficult trading conditions across many businesses.
Global macro products revenues declined substantially, primar-
ily driven by significantly weaker results from our rates fran-
chise, reflecting reduced client activity and low trading volumes.
Emerging markets revenues decreased, driven by lower trading
and financing activity, reflecting less favorable market conditions.
Securitized products revenues decreased as higher asset finance
origination was more than offset by lower agency security trad-
ing activities. Corporate lending revenues also declined. These
declines were partially offset by increased global credit products
revenues, reflecting strong leveraged finance revenues. At the end
of 2013, fixed income risk-weighted assets under Basel III totaled
USD 88 billion, a reduction of USD 9 billion, or 9%, from the prior
year.
We had lower revenues results, reflecting less favorable trading
conditions, such as low volumes and low levels of volatility in the
year. Additionally, 2013 results benefited from quantitative eas-
ing in Japan. We had significantly weaker results in systematic
market making following a strong performance in 2013. We also
had lower cash equities results, reflecting difficult market condi-
tions and subdued activity in Brazil. Our results also include the
adverse impact of the recognition of the FVA of CHF 13 million
in the fourth quarter of 2014. The decline was partially offset by
increased revenues in prime services, reflecting a strong market
share, continued portfolio optimization and increased trading and
clearing activity. We also had higher derivatives revenues, reflect-
ing strong client activity and our strategy to diversify the business
across products and regions, particularly in Asia Pacific.
The increased results reflected continued market leadership,
higher equity values and increased client activity during the year.
The increases were driven by substantially higher derivatives rev-
enues due to robust client activity and strong performance in Asia.
We also had higher results from systematic market making driven
by improved global coverage and significant market events, includ-
ing quantitative easing in Japan and strong US equity markets that
resulted in higher global equity volumes. Cash equities revenues
increased, driven by market share gains in the US and Europe and
more favorable trading conditions. Prime services revenues were
resilient, albeit lower, reflecting sustained market leadership and
increased client balances.

Investment Banking
Operating expenses
Compensation and benefits increased, reflecting higher deferred
compensation expense from prior-year awards and higher discre-
tionary compensation expenses.
The decrease was primarily driven by lower deferred compensa-
tion expense from prior-year awards, as 2012 included 2011 Part-
ner Asset Facility (PAF2) expenses of CHF 411 million, and lower
salaries and other employee benefits, reflecting lower headcount.
The decrease was driven by lower infrastructure costs and lower
UK Bank levy expenses, partially offset by higher litigation costs.
The decrease was primarily driven by lower litigation provisions and
lower technology costs.
Overview
Non-strategic results for Investment Banking include the fixed
income wind-down portfolio, legacy rates business, primarily non-
exchange-cleared instruments and capital-intensive structured
positions, commodities trading business, legacy funding costs
associated with non-Basel III compliant debt instruments, as well
as certain legacy litigation costs and other small non-strategic
positions.
In 2014, we transferred our commodities trading business into
our non-strategic unit and exited it through a sale to further maxi-
mize franchise profitability. We made progress in winding-down
our non-strategic unit, including reducing qBasel III risk-weighted
assets, Swiss leverage exposure and costs in light of our goal
to redeploy resources to growth initiatives in high-returning busi-
nesses. Results reflected negative net revenues of CHF 572 mil-
lion in 2014, including q FVA of CHF 171 million, compared to
negative net revenues of CHF 531 million in 2013. Total operating
expenses decreased, primarily driven by higher litigation provisions
in 2013 in connection with mortgage-related matters, including the
FHFA settlement.
In 2013, results reflected negative net revenues of CHF 531 mil-
lion compared to negative net revenues of CHF 719 million in
2012, driven by portfolio valuation gains and lower funding costs.
Total operating expenses increased, primarily driven by significantly
higher litigation provisions, primarily in connection with mortgage-
related matters.
Capital metrics
In 2014, we reduced q risk-weighted assets under Basel III by
USD 11 billion to USD 10 billion from the end of 2013. This com-
pares to our target of USD 6 billion by year-end 2015. Additionally,
we reported Swiss leverage exposure of USD 64 billion reflecting
a decrease of USD 23 billion from the end of 2013. This compares
to our target of USD 24 billion in Swiss leverage exposure by year-
end 2015.

86

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
(572)
(531)
(719)
8
(26)
23
6
(1)
283
–
155
168
262
(8)
(36)
1,164
1,470
473
(21)
211
of which litigation
860
1,223
192
(30)
–
1,319
1,638
735
(19)
123
(1,914)
(2,175)
(1,453)
(12)
50
Revenue details (CHF million)

Fixed income wind-down
(320)
(32)
(597)
–
(95)
Legacy rates business
(79)
12
40
–
(70)
Legacy funding costs
(148)
(381)
(395)
(61)
(4)
Other
(25)
(130)
233
(81)
–
Net revenues
(572)
(531)
(719)
8
(26)

9,966
18,344
23,720
(46)
(23)
10,070
20,615
25,921
(51)
(20)
Total assets
22,224
26,883
36,071
(17)
(25)
63,799
78,267
–
(18)
–
64,468
87,955
–
(27)
–
The following provides a comparison of our non-strategic 2014
results versus 2013 and 2013 results versus 2012.
Net revenues
2014 vs 2013: From CHF 531 million to CHF 572 million
The increased negative net revenues reflected the recognition
of FVA of CHF 171 million, which was partially offset by better
results and lower funding costs from proactive management of
both our legacy debt instruments and trading assets.
2013 vs 2012: From CHF 719 million to CHF 531 million
We had reduced negative net revenues reflecting significant val-
uation gains in our fixed income wind-down portfolio driven by
various portfolio management measures and lower funding costs.
At the end of 2013, risk-weighted assets under Basel III totaled
USD 21 billion, a reduction of USD 5 billion from 2012.
The decrease was driven by lower litigation provisions, primarily in
connection with mortgage-related matters.
2013 vs 2012: Up 123% from CHF 735 million to CHF 1,638 million
The increase was driven by significantly higher litigation provisions,
primarily CHF 1,223 million in connection with mortgage-related
matters in 2013, including in connection with the March 2014
FHFA settlement.

Corporate Center
Corporate Center
In 2014, we recorded a loss before taxes of CHF 686 million compared to a loss before taxes of CHF 1,455 million
in 2013, primarily reflecting business realignment costs, IT architecture simplification expenses and reclassifications to
discontinued operations, partially offset by fair value gains from movements in own credit spreads and gains on sales of
real estate.
Corporate Center results

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
663
(790)
(2,781)
–
(72)
2
2
0
–
–
677
455
636
49
(28)
668
196
464
241
(58)
Commission expenses
2
12
8
(83)
50
670
208
472
222
(56)
1,347
663
1,108
103
(40)
Loss before taxes
(686)
(1,455)
(3,889)
(53)
(63)

16,172
15,306
16,590
6
(8)
Total assets
45,248
32,979
33,449
37
(1)
47,058
38,601
–
22
–
1

88

Strategic results
Corporate Center
in
2014
2013
2012
2014
2013
2012
2014
2013
2012

Net revenues
(69)
(55)
(235)
732
(735)
(2,546)
663
(790)
(2,781)
2
2
0
0
0
0
2
2
0
281
153
148
396
302
488
677
455
636
328
138
151
342
70
321
670
208
472
609
291
299
738
372
809
1,347
663
1,108
(680)
(348)
(534)
(6)
(1,107)
(3,355)
(686)
(1,455)
(3,889)
Results overview
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, Corporate Center includes consoli-
dation and elimination adjustments required to eliminate inter
company revenues and expenses.
Corporate Center separately presents non-strategic items,
which management does not consider representative of our core
performance. Such items include the valuation impacts from move-
ments in credit spreads on our own liabilities carried at qfair value,
certain business realignment costs and IT architecture simplifica-
tion expenses, certain litigation provisions, business wind-down
costs and impairments not included in the divisional non-strategic
units and legacy funding costs associated with non-Basel III com-
pliant debt instruments not included in the results of the Investment
Banking non-strategic unit. Strategic business division realignment
costs are reported in the Corporate Center, while non-strategic
business division realignment costs are reported directly in the rel-
evant divisional non-strategic unit.
The following provides a comparison of our 2014 results ver-
sus 2013 and 2013 results versus 2012.
2014 vs 2013: From CHF (1,455) million to CHF (686) million
Improved results mainly reflected fair value gains on own credit
spreads of CHF 545 million, compared to fair value losses on
own credit spreads of CHF 315 million in 2013. The fair value
gains on own long-term vanilla debt reflected the widening of
credit spreads on senior and subordinated debt across most cur-
rencies. 2014 results also included higher gains on sales of real
estate of CHF 414 million in 2014, compared to CHF 68 million
in 2013, and losses of CHF 143 million comprising reclassifica-
tions to discontinued operations of revenues and expenses relat-
ing to the sales of CFIG and our domestic private banking busi-
ness booked in Germany, which were completed in 2014. 2013
results included losses from reclassifications to discontinued oper-
ations of CHF 220 million. These positive impacts on 2014 results
were partly offset by higher IT architecture simplification costs
of CHF 293 million, compared to CHF 128 million in 2013, and
higher business realignment costs of CHF 473 million, compared
to CHF 394 million in 2013.
2013 vs 2012: From CHF (3,889) million to CHF (1,455) million
Improved results mainly reflected lower fair value losses on own
credit spreads of CHF 315 million, compared to CHF 2,939 mil-
lion in 2012. The fair value losses on own long-term vanilla debt
reflected the narrowing of credit spreads on senior and subordi-
nated debt across most currencies. 2013 results also included
lower business realignment costs of CHF 394 million, compared to
CHF 680 million in 2012. Business realignment costs in 2013 pri-
marily consisted of severance and other compensation expenses
relating to Group-wide cost efficiency initiatives. 2012 results
included litigation provisions related to National Century Financial
Enterprises, Inc. (NCFE), with no litigation provisions in Corpo-
rate Center in 2013. These positive impacts on 2013 results were
partly offset by lower gains on sale of real estate of CHF 68 million
in 2013, compared to CHF 533 million in 2012, and IT architec-
ture simplification costs of CHF 128 million in 2013. Addition-
ally, Corporate Center’s 2013 results included losses of CHF 220
million comprising reclassifications to discontinued operations of
revenues and expenses relating to the 2013 sales of our ETF
business, Strategic Partners, our secondary private equity busi-
ness, CFIG and our domestic private banking business booked in
Germany.

Corporate Center

in / end of
% change

2014
2013
2012
14 / 13
13 / 12

Net revenues
732
(735)
(2,546)
–
(71)
0
0
0
–
–
738
372
809
98
(54)
(6)
(1,107)
(3,355)
(99)
(67)
   of which fair value impact from movements in own credit spreads
545
(315)
(2,939)
–
(89)
   of which realignment costs 1
(473)
(394)
(680)
20
(42)
   of which IT architecture simplification expenses
(293)
(128)
0
129
–
   of which real estate sales
414
68
533
–
(87)
   of which litigation provisions
21
0
(227) 2
–
100
   of which legacy funding costs 3
(71)
(57)
(85)
25
(33)
   of which reclassifications to discontinued operations 4
(143)
(220)
9
(35)
–
   of which other non-strategic items
(6)
(61)
34
(90)
–
1
Business realignment costs relating to divisional realignment costs are prospectively presented in the relevant divisional non-strategic results beginning in the fourth quarter of 2013.
2
Represents litigation provisions related to NCFE.
3
Represents legacy funding costs associated with non-Basel III compliant debt instruments.
4
Includes reclassifications to discontinued operations of revenues and expenses arising from the sale of our ETF, secondary private equity and CFIG businesses and our domestic private
banking business booked in Germany.
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
qdebit valuation adjustments (DVA) relating to certain structured
notes liabilities carried at qfair value. Our Core Results are also
impacted by fair value gains/(losses) on stand-alone qderivatives
relating to certain of our funding liabilities and 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). These fair
value gains/(losses) are recorded in the Corporate Center.
in
2014
2013
2012
Impact from movements in own credit spreads (CHF million)

Fair value gains/(losses) from movements in own credit spreads
545
(315)
(2,939)
   of which fair value gains/(losses) on own long-term vanilla debt
336
(268)
(1,663)
   of which fair value gains/(losses) from DVA on structured notes
261
(130)
(958)
   of which fair value gains/(losses) on stand-alone derivatives
(52)
83
(318)

90
As of December 31, 2014, assets under management from continuing operations were CHF 1,377.3 billion, up 9.9%
compared to December 31, 2013, primarily reflecting favorable foreign exchange-related movements, positive market
movements and net new assets of CHF 30.2 billion, partially offset by structural effects, primarily from the sales of
businesses.
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 client fully trans-
fers the discretionary power to a Credit Suisse entity with a man-
agement mandate. Discretionary assets are reported in the busi-
ness in which the advice is provided as well as in the business in
which the investment decisions take place. Assets managed by
Asset Management for Wealth Management Clients, Corporate &
Institutional Clients and the non-strategic business are reported
in each applicable business and eliminated at the divisional 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.
u Refer to “Private Banking & Wealth Management” and “Note 37 – Assets
under management” in V – Consolidated financial statements – Credit Suisse
Group for further information on assets under management.
Assets under management and client assets

end of
% change

2014
2013 2012
14 / 13
13 / 12

874.5
790.7
758.0
10.6
4.3
275.9
250.0
223.8
10.4
11.7
Asset Management 1
388.5
352.3
325.3
10.3
8.3
Non-strategic
10.8
44.4
84.7
(75.7)
(47.6)
(172.4)
(155.0)
(141.0)
11.2
9.9
1,377.3
1,282.4
1,250.8
7.4
2.5
   of which continuing operations
1,377.3
1,253.4
1,197.8
9.9
4.6
   of which discontinued operations
0.0
29.0
53.0
(100.0)
(45.3)
Assets under management from continuing operations
1,377.3
1,253.4
1,197.8
9.9
4.6
   of which discretionary assets
429.0
397.6
365.5
7.9
8.8
   of which advisory assets
948.3
855.8
832.3
10.8
2.8
Client assets (CHF billion) 3

1,002.1
904.5
870.1
10.8
4.0
376.2
353.3
323.0
6.5
9.4
Asset Management 1
388.5
352.3
325.3
10.3
8.3
Non-strategic
18.1
51.8
88.0
(65.1)
(41.1)
(172.4)
(155.0)
(141.0)
11.2
9.9
Client assets 3
1,612.5
1,506.9
1,465.4
7.0
2.8
1,612.5
1,477.5
1,411.8
9.1
4.7
0.0
29.4
53.6
(100.0)
(45.1)
1
Excludes our portion of assets under management from our former investment in Aberdeen.
2
3
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.

in
2014
2013
2012

30.2
36.1
11.4
Net new assets from discontinued operations
(2.0)
(4.0)
(0.6)
Net new assets
28.2
32.1
10.8
27.5
18.9
20.6
5.5
8.8
1.5
   of which Asset Management 1
3.7
15.0
(8.3)
   of which non-strategic
(8.2)
(5.9)
(2.1)
   of which assets managed across businesses 2
(0.3)
(4.7)
(0.9)
Other effects from continuing operations
93.7
19.5
52.9
Other effects from discontinued operations
(27.0)
(20.0)
1.9
Other effects
66.7
(0.5)
54.8
56.3
13.8
27.8
20.4
17.4
19.3
32.5
12.0
14.6
(25.4)
(34.4)
2.2
(17.1)
(9.3)
(9.1)
Growth in assets under management from continuing operations
123.9
55.6
64.3
Growth in assets under management from discontinued operations
(29.0)
(24.0)
1.3
94.9
31.6
65.6
83.8
32.7
48.4
25.9
26.2
20.8
36.2
27.0
6.3
(33.6)
(40.3)
0.1
(17.4)
(14.0)
(10.0)

2.4
3.0
1.0
Net new assets from discontinued operations
(6.9)
(7.5)
(1.2)
Net new assets
2.2
2.5
0.9
3.5
2.5
2.9
2.2
3.9
0.7
1.1
4.6
(2.6)
(18.5)
(7.0)
(2.5)
0.2
3.3
0.7
Other effects from continuing operations
7.5
1.6
4.7
Other effects from discontinued operations
(93.1)
(37.8)
3.6
Other effects
5.4
0.0
4.6
7.1
1.8
3.9
8.2
7.8
9.5
9.2
3.7
4.6
(57.2)
(40.6)
2.6
11.0
6.6
6.9
Growth in assets under management from continuing operations
9.9
4.6
5.7
Growth in assets under management from discontinued operations
(100.0)
(45.3)
2.4
7.6
2.5
5.5
10.6
4.3
6.8
10.4
11.7
10.2
10.3
8.3
2.0
(75.7)
(47.6)
0.1
11.2
9.9
7.6
1
Includes outflows for private equity assets reflecting realizations at cost and unfunded commitments on which a fee is no longer earned.
2

92
In 2014, assets under management from continuing operations
of CHF 1,377.3 billion increased by CHF 123.9 billion, or 9.9%,
compared to the end of 2013, primarily reflecting favorable foreign
exchange-related movements, positive market movements and
net new assets of CHF 30.2 billion, partially offset by structural
effects, primarily from the sales of businesses.
tributed assets under management of CHF 874.5 billion, which
increased 10.6% compared to the end of 2013, reflecting favor-
able exchange-related movements, primarily resulting from the
appreciation of the US dollar, net new assets of CHF 27.5 billion
and positive market movements. In Corporate & Institutional Cli-
ents in Switzerland, assets under management of CHF 275.9 bil-
lion increased CHF 25.9 billion, or 10.4%, compared to the end of
2013, mainly driven by positive market movements and CHF 5.5
billion of net new assets. In Asset Management, assets under
management were CHF 388.5 billion, an increase of CHF 36.2
billion, or 10.3%, compared to the end of 2013, reflecting positive
market movements, favorable exchange-related movements and
net new assets of CHF 3.7 billion, partially offset by outflows of
CHF 9.2 billion of assets that resulted from the change of man-
agement of funds from Hedging-Griffo to a new venture in Brazil,
Verde Asset Management, in which we have a significant invest-
ment, and outflows in traditional products.
declined 75.7% to CHF 10.8 billion mainly reflecting the sale of
CFIG and of our domestic private banking business booked in
Germany.
Net new assets
Net new assets include individual cash payments, delivery of secu-
rities 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.
In 2014, we recorded net new assets from continuing opera-
tions of CHF 30.2 billion.
tributed net new assets of CHF 27.5 billion, primarily with inflows
from emerging markets and our q UHNWI client segment, par-
tially offset by Western European cross-border outflows. Corpo-
rate & Institutional Clients in Switzerland reported net new assets
of CHF 5.5 billion. Asset Management reported net new assets of
CHF 3.7 billion, with inflows from a joint venture in emerging mar-
kets and in index and credit products partially offset by outflows
relating to Verde Asset Management and outflows in traditional
products.
In our non-strategic portfolio, net asset outflows of CHF 8.2
billion reflected the exit of certain businesses, of which CHF 2.0
billion were classified as discontinued operations.
Net new assets
in
2014
2013
2012
Net new assets (CHF billion)

27.5
18.9
20.6
5.5
8.8
1.5
Asset Management
3.7
15.0
(8.3)
Non-strategic
(8.2)
(5.9)
(2.1)
(0.3)
(4.7)
(0.9)
Net new assets
28.2
32.1
10.8
30.2
36.1
11.4
(2.0)
(4.0)
(0.6)
1
Assets managed by Asset Management for Wealth Management Clients, Corporate & Institutional Clients and the non-strategic businesses.

Critical accounting estimates
In order to prepare the consolidated financial statements in accor-
dance with US GAAP, management is required to make certain
accounting estimates to ascertain the value of assets and liabili-
ties. These estimates are based upon judgment and the informa-
tion available at the time, and actual results may differ materially
from these estimates. Management believes that the estimates
and assumptions used in the preparation of the consolidated finan-
cial statements are prudent, reasonable and consistently applied.
We believe that the critical accounting estimates discussed
below involve the most complex judgments and assessments.
u Refer to “Note 1 – Summary of significant accounting policies” and “Note 2 –
Recently issued accounting standards” in V – Consolidated financial statements –
Credit Suisse Group for further information on significant accounting policies and
new accounting pronouncements. For financial information relating to the Bank,
refer to the corresponding notes in the consolidated financial statements of the
Bank.
Fair value
A significant portion of our assets and liabilities are carried at qfair
value. The fair value of the majority of these financial instruments
is based on quoted prices in active markets or observable inputs.
In addition, we hold 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 sub-
jective assessment and judgment depending on liquidity, pricing
assumptions, the current economic and competitive environment
and the risks affecting the specific instrument. In such circum-
stances, 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 qOTC derivatives includ-
ing equity and credit derivatives, certain corporate equity-linked
securities, mortgage-related and qCDO securities, private equity
investments, certain loans and credit products (including leveraged
finance, certain syndicated loans and certain high yield bonds) and
life finance instruments.
We have availed ourselves of the simplification in accounting
offered under the fair value option guidance in Accounting Stan-
dards Codification (ASC) Topic 825 – Financial Instruments, pri-
marily in Investment Banking and in Private Banking & Wealth
Management’s Asset Management business. This has been
accomplished generally by electing the fair value option, both at
initial adoption and for subsequent transactions, on items impacted
by the hedge accounting requirements of US GAAP. For instru-
ments for which hedge accounting could not be achieved and for
which we are economically hedged, we have elected the fair value
option. Where we manage an activity on a fair value basis but pre-
viously have been unable to achieve fair value accounting, we have
utilized the fair value option to align our financial accounting to our
risk management reporting.
Control processes are applied to ensure that the fair values
of the financial instruments reported in the consolidated financial
statements, including those derived from pricing models, are
appropriate and determined on a reasonable basis.
u Refer to “Note 34 – Financial instruments” in V – Consolidated financial state-
ments – Credit Suisse Group for further information on fair value and related
control processes of the Group.
Variable interest entities
As a normal part of our business, we engage in various transac-
tions that include entities which are considered variable interest
entities (VIEs). VIEs are special purpose entities that typically lack
sufficient equity to finance their activities without additional subor-
dinated financial support or are structured such that the holders of
the voting rights do not substantively participate in the gains and
losses of the entity. Such entities are required to be assessed for
consolidation under US GAAP, compelling the primary beneficiary
to consolidate the VIE. The primary beneficiary is the party that
has the power to direct the activities that most significantly affect
the economics of the VIE and potentially has significant benefits
or losses in the VIE. We consolidate all VIEs where we are the
primary beneficiary. VIEs may be sponsored by us, unrelated third
parties or clients. Application of the accounting requirements for
consolidation of VIEs, including ongoing reassessment of VIEs
for possible consolidation, may require the exercise of significant
management judgment.
u Refer to “Note 1 – Summary of significant accounting policies” and “Note 33
– Transfers of financial assets and variable interest entities” in V – Consolidated
financial statements – Credit Suisse Group for further information on VIEs.
Contingencies and loss provisions
A contingency is an existing condition that involves a degree of
uncertainty that will ultimately be resolved upon the occurrence or
non-occurrence of future events.
Litigation contingencies
We are involved in a number of judicial, regulatory and arbitra-
tion proceedings concerning matters arising in connection with
the conduct of our businesses. Some of these proceedings have
been brought on behalf of various classes of claimants and seek
damages of material and/or indeterminate amounts. We accrue
loss contingency litigation provisions and take a charge to income
in connection with certain proceedings when losses, additional
losses or ranges of loss are probable and reasonably estimable.
We also accrue litigation provisions for the estimated fees and
expenses of external lawyers and other service providers in rela-
tion to such proceedings, including in cases for which we have not
accrued a loss contingency provision. We accrue these fee and
expense litigation provisions and take a charge to income in con-
nection therewith when such fees and expenses are probable and
reasonably estimable. We review our legal proceedings each quar-
ter to determine the adequacy of our litigation provisions and may
increase or release provisions based on management’s judgment

94
and the advice of counsel. The establishment of additional provi-
sions or releases of litigation provisions may be necessary in the
future as developments in such 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 our legal proceedings. 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 proceeding, the progress of the matter,
the advice of counsel, our defenses and our experience in similar
matters, as well as our assessment of matters, including settle-
ments, involving other defendants in similar or related cases or
proceedings. Factual and legal determinations, many of which are
complex, must be made before a loss, additional losses or ranges
of loss can be reasonably estimated for any proceeding. We do
not believe that we can estimate an aggregate range of reason-
ably possible losses for certain of our proceedings because of their
complexity, the novelty of some of the claims, the early stage of
the proceedings, the limited amount of discovery that has occurred
and/or other factors. Most matters pending against us seek dam-
ages of an indeterminate amount. While certain matters specify
the damages claimed, such claimed amount may not represent our
reasonably possible losses.
Credit Suisse Group for further information on legal proceedings.
Allowance and provision for credit losses
As a normal part of our business, we are exposed to credit risk
through our lending relationships, commitments and letters
of credit as well as counterparty risk on q derivatives, foreign
exchange and other transactions. Credit risk is the possibility of a
loss being incurred as a result of a borrower or counterparty fail-
ing 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
default, we generally incur a loss equal to the amount owed by the
debtor, less any recoveries resulting from foreclosure, liquidation
of collateral or the restructuring of the debtor company. The allow-
ance for loan losses is considered a reasonable estimate of credit
losses existing at the dates of the consolidated balance sheets.
This allowance is for probable credit losses inherent in existing
exposures and credit exposures specifically identified as impaired.
u Refer to “Note 1 – Summary of significant accounting policies” and “Note 18 –
Loans, allowance for loan losses and credit quality” in V – Consolidated financial
statements – Credit Suisse Group for further information on allowance for loan
losses.
Inherent loan loss allowance
The inherent loan loss allowance is for all credit exposures not
specifically identified as impaired and that, on a portfolio basis,
are considered to contain probable inherent loss. The estimate
of this component of the allowance for the consumer loans port-
folio involves applying historical and current default probabilities,
historical recovery experience and related current assumptions to
homogenous loans based on internal risk rating and product type.
To estimate this component of the allowance for the corporate &
institutional loans portfolio, the Group segregates loans by risk,
industry or country rating. The methodology for Investment Bank-
ing adjusts the rating-specific default probabilities to incorporate
not only historic third-party data but also those implied from cur-
rent quoted credit spreads.
Many factors are evaluated in estimating probable credit losses
inherent in existing exposures. These factors include: the volatil-
ity of default probabilities; rating changes; the magnitude of the
potential loss; internal risk ratings; geographic, industry and other
economic factors; and imprecision in the methodologies and mod-
els used to estimate credit risk. Overall credit risk indicators are
also considered, such as trends in internal risk-rated exposures,
classified exposures, cash-basis loans, recent loss experience and
forecasted write-offs, as well as industry and geographic concen-
trations and current developments within those segments or loca-
tions. Our current business strategy and credit process, including
credit approvals and limits, underwriting criteria and workout pro-
cedures, are also important factors.
Significant judgment is exercised in the evaluation of these fac-
tors. For example, estimating the amount of potential loss requires
an assessment of the period of the underlying data. Data that
does not capture a complete credit cycle may compromise the
accuracy of loss estimates. Determining which external data relat-
ing to default probabilities should be used and when it should be
used also requires judgment. The use of market indices and rat-
ings that do not sufficiently correlate to our specific exposure char-
acteristics could also affect the accuracy of loss estimates. Evalu-
ating the impact of uncertainties regarding macroeconomic and
political conditions, currency devaluations on cross-border expo-
sures, changes in underwriting criteria, unexpected correlations
among exposures and other factors all require significant judg-
ment. Changes in our estimates of probable loan losses inherent in
the portfolio could have an impact on the provision and result in a
change in the allowance.
Specific loan loss allowances
We make provisions for specific loan losses on impaired loans
based on regular and detailed analysis of each loan in the portfolio.
This analysis includes an estimate of the realizable value of any
collateral, the costs associated with obtaining repayment and real-
ization of any such collateral, the counterparty’s overall financial
condition, resources and payment record, the extent of our other
commitments to the same counterparty and prospects for support
from any financially responsible guarantors.
The methodology for calculating specific allowances involves
judgments at many levels. First, it involves the early identification
of deteriorating credit. Extensive judgment is required in order to
properly evaluate the various indicators of the financial condition of
a counterparty and likelihood of repayment. The failure to identify
certain indicators or give them proper weight could lead to a dif-
ferent conclusion about the credit risk. The assessment of credit
risk is subject to inherent limitations with respect to the complete-
ness and accuracy of relevant information (for example, relating
to the counterparty, collateral or guarantee) that is available at the

time of the assessment. Significant judgment is exercised in deter-
mining the amount of the allowance. Whenever possible, inde-
pendent, verifiable data or our own historical loss experience is
used in models for estimating loan losses. However, a significant
degree of uncertainty remains when applying such valuation tech-
niques. Under our loan policy, the classification of loan status also
has a significant impact on the subsequent accounting for interest
accruals.
u Refer to “Risk Management” in III – Treasury, Risk, Balance sheet and Off-
balance sheet and “Note 18 – Loans, allowance for loan losses and credit qual-
ity” in V – Consolidated financial statements – Credit Suisse Group for loan port-
folio disclosures, valuation adjustment disclosures and certain other information
relevant to the evaluation of credit risk and credit risk management.
Goodwill impairment
Under US GAAP, goodwill is not amortized, but is reviewed for
potential impairment on an annual basis as of December 31 and at
any other time that events or circumstances indicate that the car-
rying value of goodwill may not be recoverable.
For the purpose of testing goodwill for impairment, each
reporting unit is assessed individually. A reporting unit is an oper-
ating segment or one level below an operating segment, also
referred to as a component. A component of an operating seg-
ment is deemed to be a reporting unit if the component constitutes
a business for which discrete financial information is available and
management regularly reviews the operating results of that com-
ponent. In Private Banking & Wealth Management, Wealth Man-
agement Clients, Corporate & Institutional Clients, Asset Manage-
ment and Private Banking & Wealth Management’s non-strategic
unit are considered to be reporting units. Investment Banking is
considered to be one reporting unit.
With the adoption of Accounting Standards Update 2011-08,
“Testing Goodwill for Impairment” (ASU 2011-08), on January 1,
2012 a qualitative assessment is permitted to evaluate whether a
reporting unit’s qfair value is less than its carrying value. If on the
basis of the qualitative assessment it is more likely than not that
the reporting unit’s fair value is higher than its carrying value, no
quantitative goodwill impairment test is required. If on the basis of
the qualitative assessment it is more likely than not that the report-
ing unit’s fair value is lower than its carrying value, the first step
of the quantitative goodwill impairment test must be performed,
by calculating the fair value of the reporting unit and comparing
that amount to its carrying value. If the fair value of a reporting
unit exceeds its carrying value, there is no goodwill impairment. If
the carrying value exceeds the fair value, the second step of the
quantitative goodwill impairment test, measuring the amount of an
impairment loss, if any, has to be performed.
The qualitative assessment is intended to be a simplification of
the annual impairment test and can be bypassed for any reporting
unit and any period to proceed directly to performing the first step
of the quantitative goodwill impairment test. When bypassing the
qualitative assessment in any period as per the current practice
of the Group, the preparation of a qualitative assessment can be
resumed in any subsequent period.
Circumstances that could trigger an initial qualitative assess-
ment or the first step of the goodwill impairment test include, but
are not limited to: (i) macroeconomic conditions such as a dete-
rioration in general economic conditions or other developments in
equity and credit markets; (ii) industry and market considerations
such as a deterioration in the environment in which the entity oper-
ates, an increased competitive environment, a decline in market-
dependent multiples or metrics (considered in both absolute terms
and relative to peers), and regulatory or political developments; (iii)
other relevant entity-specific events such as changes in manage-
ment, key personnel or strategy; (iv) a more-likely-than-not expec-
tation of selling or disposing of all, or a portion, of a reporting unit;
(v) results of testing for recoverability of a significant asset group
within a reporting unit; (vi) recognition of a goodwill impairment in
the financial statements of a subsidiary that is a component of a
reporting unit; and (vii) a sustained decrease in share price (con-
sidered in both absolute terms and relative to peers).
The carrying value of each reporting unit for the purpose of the
goodwill impairment test is determined by considering the report-
ing units’ qrisk-weighted assets usage, leverage ratio exposure,
deferred tax assets, cumulative translation adjustments, goodwill
and intangible assets. Any residual equity, after considering the
total of these elements, is allocated to the reporting units on a pro-
rata basis. As of December 31, 2014, such residual equity was
equal to CHF 9,215 million.
Factors considered in determining the fair value of reporting
units include, among other things: an evaluation of recent acquisi-
tions of similar entities in the market place; current share values in
the market place for similar publicly traded entities, including price
multiples; recent trends in our share price and those of competi-
tors; estimates of our future earnings potential based on our three-
year strategic business plan; and the level of interest rates.
Estimates of our future earnings potential, and that of the
reporting units, involve considerable judgment, including manage-
ment’s view on future changes in market cycles, the regulatory
environment, the anticipated result of the implementation of busi-
ness strategies, competitive factors and assumptions concerning
the retention of key employees. Adverse changes in the estimates
and assumptions used to determine the fair value of the Group’s
reporting units may result in a goodwill impairment in the future.
An estimated balance sheet for each reporting unit is prepared
on a quarterly basis. If the second step of the goodwill impair-
ment test is required, the implied fair value of the relevant report-
ing unit’s goodwill is compared with the carrying value of that
goodwill. If the carrying value exceeds the implied fair value of the
goodwill, an impairment loss is recognized in an amount equal to
that excess. The loss recognized as a goodwill impairment cannot
exceed the carrying value of that goodwill. The implied fair value of
goodwill is calculated in the same manner as the amount of good-
will recognized in a business combination and, as such, the current
fair value of a reporting unit is assigned to all of the assets and
liabilities of that unit (including any unrecognized intangible assets,
but excluding goodwill) as if the reporting unit had been acquired
in a business combination. An independent valuation expert would

96
likely be engaged to assist in the valuation of the reporting unit’s
unrecognized intangible assets.
Based on our goodwill impairment analysis performed as of
December 31, 2014, we concluded that the estimated fair value
for the reporting units in the Private Banking & Wealth Manage-
ment division with goodwill substantially exceeded their related
carrying values and no impairment was necessary as of Decem-
ber 31, 2014.
There was no impairment necessary for our Investment Bank-
ing reporting unit as the estimated fair value substantially exceeded
its carrying value. The Group engaged the services of an indepen-
dent valuation specialist to assist in the valuation of the reporting
unit as of December 31, 2014 using a combination of the market
approach and income approach. Under the market approach, con-
sideration is given to price to projected earnings multiples or price
to book value multiples for similarly traded companies and prices
paid in recent transactions that have occurred in its industry or in
related industries. Under the income approach, a discount rate was
applied that reflects the risk and uncertainty related to the report-
ing unit’s projected cash flows.
The results of the impairment evaluation of each reporting
unit’s goodwill would be significantly impacted by adverse changes
in the underlying parameters used in the valuation process. If
actual outcomes adversely differ by a sufficient margin from our
best estimates of the key economic assumptions and associated
cash flows applied in the valuation of the reporting unit, we could
potentially incur material impairment charges in the future.
u Refer to “Note 20 – Goodwill” in V – Consolidated financial statements –
Credit Suisse Group for further information on goodwill.
Taxes
Uncertainty of income tax positions
We follow the guidance in ASC Topic 740 – Income Taxes, which
sets out a consistent framework to determine the appropriate level
of tax reserves to maintain for uncertain income tax positions.
Significant judgment is required in determining whether it is
more likely than not that an income tax position will be sustained
upon examination, including resolution of any related appeals or
litigation processes, based on the technical merits of the position.
Further judgment is required to determine the amount of benefit
eligible for recognition in the consolidated financial statements.
Suisse Group for further information on income tax positions.
Deferred tax valuation allowances
Deferred tax assets and liabilities are recognized for the estimated
future tax effects of operating loss carry-forwards and temporary
differences between the carrying values of existing assets and
liabilities and their respective tax bases at the dates of the consoli-
dated balance sheets.
The realization of deferred tax assets on temporary differences
is dependent upon the generation of taxable income during the
periods in which those temporary differences become deductible.
The realization of deferred tax assets on net operating losses is
dependent upon the generation of taxable income during the peri-
ods prior to their expiration, if applicable. Management regularly
evaluates whether deferred tax assets will be realized. If manage-
ment considers it more likely than not that all or a portion of a
deferred tax asset will not be realized, a corresponding valuation
allowance is established. In evaluating whether deferred tax assets
will be realized, management considers both positive and negative
evidence, including projected future taxable income, the reversal
of deferred tax liabilities which can be scheduled and tax planning
strategies.
This evaluation requires significant management judgment, pri-
marily with respect to projected taxable income. Future taxable
income can never be predicted with certainty. It is derived from
budgets and strategic business plans but is dependent on numer-
ous factors, some of which are beyond management’s control.
Substantial variance of actual results from estimated future tax-
able profits, or changes in our estimate of future taxable profits
and potential restructurings, could lead to changes in deferred tax
assets being realizable, or considered realizable, and would require
a corresponding adjustment to the valuation allowance.
As part of its normal practice, management has conducted a
detailed evaluation of its expected future results and also consid-
ered stress scenarios. This evaluation has indicated the expected
future results that are likely to be earned in jurisdictions where
the Group has significant gross deferred tax assets, such as the
US, the UK and Switzerland. Management then compared those
expected future results with the applicable law governing utiliza-
tion of deferred tax assets. US tax law allows for a 20-year carry-
forward period for net operating losses, UK tax law allows for an
unlimited carry-forward period for net operating losses and Swiss
tax law allows for a seven-year carry-forward period for net oper-
ating losses.
Suisse Group for further information on deferred tax assets.
Pension plans
The Group
The Group covers pension requirements, in both Swiss and non-
Swiss locations, through various defined benefit pension plans and
defined contribution pension plans.
Our funding policy with respect to these pension plans is con-
sistent with local government and tax requirements.
The calculation of the expense and liability associated with
the defined benefit pension plans requires an extensive use of
assumptions, which include the discount rate, expected return on
plan assets and rate of future compensation increases. Manage-
ment determines these assumptions based upon currently avail-
able market and industry data and historical experience of the
plans. Management also consults with an independent actuarial
firm to assist in selecting appropriate assumptions and valuing
its related liabilities. The actuarial assumptions used by us may
differ materially from actual results due to changing market and
economic conditions and specific experience of the plans (such
as investment management over- or underperformance, higher or

lower withdrawal rates and longer or shorter life spans of the par-
ticipants). Any such differences could have a significant impact on
the amount of pension expense recorded in future years.
The funded status of our defined benefit pension and other
post-retirement defined benefit plans are recorded in the consoli-
dated balance sheets. The impacts from re-measuring the funded
status (reflected in actuarial gains or losses) and from amending
the plan (reflected in prior service cost or credits) are recognized
in equity as a component of accumulated other comprehensive
income/(loss) (AOCI).
The projected benefit obligation (PBO) of our total defined ben-
efit pension plans as of December 31, 2014 included an amount
related to our assumption for future salary increases of CHF 621
million, compared to CHF 488 million as of December 31, 2013.
The accumulated benefit obligation (ABO) is defined as the PBO
less the amount related to estimated future salary increases. The
difference between the qfair value of plan assets and the ABO
was an overfunding of CHF 932 million for 2014, compared to an
overfunding of CHF 2,091 million for 2013.
We are required to estimate the expected long-term rate of
return on plan assets, which is then used to compute benefit costs
recorded in the consolidated statements of operations. Estimat-
ing future returns on plan assets is particularly subjective, as the
estimate requires an assessment of possible future market returns
based on the plan asset mix. In calculating pension expense and
in determining the expected long-term rate of return, we use the
market-related value of assets. The assumptions used to deter-
mine the benefit obligation as of the measurement date are also
used to calculate the net periodic benefit costs for the 12-month
period following this date.
The expected weighted-average long-term rate of return
used to determine the expected return on plan assets as a com-
ponent of the net periodic benefit costs in 2014 and 2013 was
3.75% and 4.00%, respectively, for the Swiss plans and 6.16%
and 6.18%, respectively, for the international plans. In 2014, if the
expected long-term rate of return had been increased/decreased
one percentage point, net pension expense for the Swiss plans
would have decreased/increased CHF 146 million and net pen-
sion expense for the international plans would have decreased/
increased CHF 29 million.
The discount rate used in determining the benefit obligation
is based either upon high-quality corporate bond rates or govern-
ment bond rates plus a premium in order to approximate high-qual-
ity corporate bond rates. In estimating the discount rate, we take
into consideration the relationship between the corporate bonds
and the timing and amount of the future cash outflows from ben-
efit payments. The discount rate used for Swiss plans decreased
1.35 percentage points from 2.60% as of December 31, 2013,
to 1.25% as of December 31, 2014, mainly due to a decrease
in Swiss bond market rates. The average discount rate used for
international plans decreased 0.89 percentage points from 4.71%
as of December 31, 2013, to 3.82% as of December 31, 2014,
mainly due to a decrease in bond market rates in the eurozone,
the US and the UK. The discount rate affects both the pension
expense and the PBO. For the year ended December 31, 2014,
a one percentage point decline in the discount rate for the Swiss
plans would have resulted in an increase in the PBO of CHF 2,108
million and an increase in pension expense of CHF 147 million,
and a one percentage point increase in the discount rate would
have resulted in a decrease in the PBO of CHF 1,841 million
and a decrease in the pension expense of CHF 114 million. A
one percentage point decline in the discount rate for the inter-
national plans as of December 31, 2014 would have resulted in
an increase in the PBO of CHF 755 million and an increase in
pension expense of CHF 57 million, and a one percentage point
increase in the discount rate would have resulted in a decrease
in the PBO of CHF 608 million and a decrease in the pension
expense of CHF 50 million.
Actuarial losses and prior service cost are amortized over the
average remaining service period of active employees expected
to receive benefits under the plan, which, as of December 31,
2014, was approximately nine years for the Swiss plans and 3 to
24 years for the international plans. The pre-tax expense associ-
ated with the amortization of net actuarial losses and prior service
cost for defined benefit pension plans for the years ended Decem-
ber 31, 2014, 2013 and 2012 was CHF 102 million, CHF 245
million and CHF 165 million, respectively. The amortization of rec-
ognized actuarial losses and prior service cost for defined benefit
pension plans for the year ending December 31, 2015, which is
assessed at the beginning of the year, is expected to be CHF 267
million, net of tax. The impact from deviations between our actu-
arial assumptions and the actual developments of such parameters
observed for our pension plans further impacts the amount of net
actuarial losses or gains recognized in equity, resulting in a higher
or lower amount of amortization expense in periods after 2015.
u Refer to “Note 30 – Pension and other post-retirement benefits” in V – Con-
solidated financial statements – Credit Suisse Group for further information on
pension benefits.

98
The Bank
The Bank covers pension requirements for its employees in Swit-
zerland through participation in a defined benefit pension plan
sponsored by the Group (Group plan). Various legal entities within
the Group participate in the Group plan, which is set up as an
independent trust domiciled in Zurich. The Group accounts for the
Group plan as a single-employer defined benefit pension plan and
uses the projected unit credit actuarial method to determine the
net periodic pension expense, PBO, ABO and the related amounts
recognized in the consolidated balance sheets. The funded status
of the Group plan is recorded in the consolidated balance sheets.
The actuarial gains and losses and prior service costs or credits
are recognized in equity as a component of AOCI.
The Bank accounts for the Group plan on a defined contribu-
tion basis whereby it only recognizes the amounts required to be
contributed to the Group plan during the period as net periodic
pension expense and only recognizes a liability for any contribu-
tions due and unpaid. No other expense or balance sheet amounts
related to the Group plan are recognized by the Bank.
The Bank covers pension requirements for its employees in
international locations through participation in various pension
plans, which are accounted for as single-employer defined benefit
pension plans or defined contribution pension plans.
In 2014, if the Bank had accounted for the Group plan as a
defined benefit plan, the expected long-term rate of return used to
determine the expected return on plan assets as a component of
the net periodic benefit costs would have been 3.82%. In 2014,
the weighted-average expected long-term rate of return used to
calculate the expected return on plan assets as a component of
the net periodic benefit costs for the international single-employer
defined benefit pension plans was 6.16%.
The discount rate used in determining the benefit obligation
is based either upon high-quality corporate bond rates or govern-
ment bond rates plus a premium in order to approximate high-qual-
ity corporate bond rates. For the year ended December 31, 2014,
if the Bank had accounted for the Group plan as a defined benefit
plan, the discount rate used in the measurement of the benefit
obligation and net periodic benefit costs would have been 1.25%
and 2.60%, respectively. For the year ended December 31, 2014,
the weighted-average discount rates used in the measurement
of the benefit obligation and the net periodic benefit costs for the
international single-employer defined benefit pension plans were
3.82% and 4.71%, respectively. A one percentage point decline in
the discount rate for the international single-employer plans would
have resulted in an increase in PBO of CHF 755 million and an
increase in pension expense of CHF 57 million, and a one per-
centage point increase in the discount rate would have resulted in
a decrease in PBO of CHF 608 million and a decrease in pension
expense by CHF 50 million.
The Bank does not recognize any amortization of actuarial
losses and prior service cost for the Group pension plan. Actuarial
losses and prior service cost related to the international single-
employer defined benefit pension plans are amortized over the
average remaining service period of active employees expected to
receive benefits under the plan. The pre-tax expense associated
with the amortization of recognized net actuarial losses and prior
service cost for the years ended December 31, 2014, 2013 and
2012 was CHF 52 million, CHF 79 million and CHF 73 million,
respectively. The amortization of recognized actuarial losses and
prior service cost for the year ending December 31, 2015, which is
assessed at the beginning of the year, is expected to be CHF 58
million, net of tax.

99
IIITreasury, Risk,
Balance sheet and
Off-balance sheet
100 Liquidity and funding management
108 Capital management
126 Risk management
161 Balance sheet, off-balance sheet
and other contractual obligations

100
Liquidity and funding management
During 2014, we maintained a strong liquidity and funding position. The majority of our unsecured funding was generated
from core customer deposits and long-term debt.
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 typi-
cally to meet capital requirements, or as desired by management
to support business initiatives.
Our liquidity and funding strategy is approved by the Capital
Allocation and Risk Management Committee (CARMC) and over-
seen by the Board of Directors. The implementation and execu-
tion of the funding and liquidity strategy is managed by Treasury.
Treasury ensures adherence to our funding policy and the effi-
cient coordination of the secured funding desks. This approach
enhances our ability to manage potential liquidity and funding
risks and to promptly adjust our liquidity and funding levels to
meet stress situations. Our liquidity and funding profile is regularly
reported to CARMC and the Board of Directors, who define our
risk tolerance, including liquidity risk, and set parameters for the
balance sheet and funding usage of our businesses. The Board of
Directors is responsible for defining our overall tolerance for risk in
the form of a risk appetite statement.
Our liquidity and funding profile reflects our strategy and risk
appetite and is driven by business activity levels and the overall
operating environment. We have adapted our liquidity and funding
profile to reflect lessons learned from the financial crisis, the sub-
sequent changes in our business strategy and regulatory devel-
opments. We have been an active participant in regulatory and
industry forums to promote best practice standards on quantita-
tive and qualitative liquidity management. Our internal liquidity risk
management framework is subject to review and monitoring by the
qSwiss Financial Market Supervisory Authority FINMA (FINMA),
other regulators and rating agencies.
Regulatory framework
Our current liquidity principles as agreed with q FINMA, follow-
ing its consultation with the Swiss National Bank (SNB), were
implemented in April 2010 and March 2011. These principles are
designed to ensure that the Group and the Bank have adequate
holdings on a consolidated basis of liquid, unencumbered, high-
quality securities available in a crisis situation for designated peri-
ods of time.
Basel III liquidity framework
In December 2010, the q Basel Committee on Banking Super-
vision (BCBS) issued the q Basel III international framework for
liquidity risk measurement, standards and monitoring. The Basel III
framework includes a qliquidity coverage ratio (LCR) and a qnet
stable funding ratio (NSFR).
In January 2014, the BCBS issued final LCR rules and disclo-
sure requirements that are to be implemented as part of banks’
regular disclosures after January 1, 2015. The LCR, which will be
phased in beginning January 1, 2015 through January 1, 2019,
addresses liquidity risk over a 30-day period. The LCR aims to
ensure that banks have a stock of unencumbered high-quality liq-
uid assets available to meet short-term liquidity needs under a
severe stress scenario. The LCR is comprised of two components,
the value of the stock of high-quality liquid assets in stressed con-
ditions and the total net cash outflows calculated according to
specified scenario parameters. Under the BCBS requirements, the
ratio of liquid assets over net cash outflows is subject to an initial
minimum requirement of 60%, which will increase by 10% for each
of the next four years, reaching 100% by January 1, 2019.
In October 2014, the BCBS issued final NSFR rules, requiring
banks to maintain a stable funding profile in relation to their on-
and off-balance sheet activities. The rules retain the structure of
the January 2014 BCBS consultative proposal with key changes
related to short-term exposures to banks and other financial insti-
tutions, qderivative exposures and assets posted as initial margin
for derivative contracts. In addition, the final standard recognizes
that, under strict conditions, certain asset and liability items are
interdependent and can therefore be viewed as neutral in terms of
the NSFR. The NSFR 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 NSFR is a complemen-
tary measure to the LCR and is structured to ensure that illiquid
assets are funded with an appropriate amount of stable long-term
funds. The NSFR is defined as the ratio of available stable fund-
ing over the amount of required stable funding and should always
be at least 100%. Following an observation period which began
in 2012, the NSFR will become a minimum standard on January
1, 2018.
Swiss liquidity requirements
In November 2012, the Swiss Federal Council adopted a liquidity
ordinance (Liquidity Ordinance) that implements Basel III liquid-
ity requirements into Swiss law subject, in part, to further rule-
making. The Liquidity Ordinance entered into force on January
1, 2013. It requires appropriate management and monitoring of
liquidity risks, and applies to all banks, but is tiered according to
the type, complexity and degree of risk of a bank’s activities. It
also contains supplementary quantitative and qualitative require-
ments for systemically relevant banks, including us, which are gen-
erally consistent with existing FINMA liquidity requirements.

101Treasury, Risk, Balance sheet and Off-balance sheet
In January 2014, the Swiss Federal Council and FINMA pro-
posed revisions to the Liquidity Ordinance to reflect the final Basel
III LCR rules. These revisions have been adopted by the Swiss
Federal Council on June 25, 2014 and entered into effect on Jan-
uary 1, 2015. As a result, all Swiss banks are subject to an LCR
requirement. Systemically relevant banks like us became subject to
an initial minimum LCR requirement of 100% beginning on Janu-
ary 1, 2015, while other banks are subject to an initial 60% LCR
requirement, with incremental increases by 10% per year until
January 1, 2019. Based on the new disclosure requirements we
will be reporting the LCR publicly on a quarterly basis in 2015. Fol-
lowing the June 2014 revisions to the Liquidity Ordinance, begin-
ning in the second quarter of 2014 we allocated the majority of
the balance sheet usage related to a portfolio of high-quality liquid
assets managed by our Treasury function and previously recorded
in the Corporate Center to the business divisions to allow for a
more efficient management of their business activities from an
overall Group perspective with respect to LCR and Swiss lever-
age requirements arising from the portfolio of assets. Prior periods
have been restated for the related impact on assets and Swiss
leverage exposures.
In October 2014, FINMA issued a revised circular related to
disclosure requirements for banks which included requirements for
banks to disclose quantitative and qualitative information related to
the LCR beginning in the first quarter of 2015.
In November 2014, FINMA published new reporting instruc-
tions for the NSFR that will require us to report to FINMA our
NSFR on a quarterly basis for the fourth quarter of 2014, first
quarter of 2015 and second quarter of 2015 and then monthly
thereafter. The reporting instructions are generally aligned with the
final BCBS NSFR requirements.
In January 2015, FINMA’s revised circular on qualita-
tive requirements for liquidity risk management and quantitative
requirements for liquidity maintenance, which was issued in July
2014, entered into effect.
Our liquidity principles and our liquidity risk management
framework as agreed with FINMA are in line with the Basel III
liquidity framework.
u Refer to “Recent regulatory developments and proposals” in I – Information on
the company – Regulation and supervision for further information.
Liquidity risk management framework
Our approach to liquidity risk management
Our liquidity and funding policy is designed to ensure that fund-
ing 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, in excess of illiquid assets. To address short-term liquid-
ity stress, we maintain a liquidity pool, described below, that covers
unexpected outflows in the event of severe market and idiosyn-
cratic stress. Our liquidity risk parameters reflect various liquidity
stress assumptions that we believe are conservative. We manage
our liquidity profile at a sufficient level such that, in the event we
are unable to access unsecured funding, we will have sufficient
liquidity to sustain operations for a period of time in excess of our
minimum limit.
Although the q NSFR is not effective until 2018, we began
using the NSFR in 2012 as one of our primary tools, in parallel
with the liquidity barometer discussed below, to monitor our struc-
tural liquidity position, plan funding and as the basis for our funds
transfer pricing policy. We estimate that our NSFR under the cur-
rent FINMA framework was approximately 100% as of the end of
2014.
Our estimate is based on the definitions and methodologies
outlined in the aforementioned q BCBS Basel III international
framework for liquidity risk measurement, standards and monitor-
ing issued in December 2010, the Liquidity Ordinance discussed
above implementing the Basel III liquidity requirements into Swiss
law, and other guidance and requirements of FINMA. Where
requirements are unclear or left to be determined by FINMA, we
have made our own interpretation and assumptions which may not
be consistent with those of other financial institutions or what may
ultimately be required FINMA. The NSFR is based on regulatory
metrics, the disclosure of which is not yet required, and, as such, it
represents a non-GAAP financial measure.
In parallel with the NSFR, we continue to use our internal
liquidity barometer to manage liquidity to internal targets and as
a basis to model both Credit Suisse-specific and systemic mar-
ket stress scenarios and their impact on funding and liquidity. Our
internal barometer framework supports the management of our
funding structure. It allows us to manage the time horizon over
which the stressed market value of unencumbered assets (includ-
ing cash) exceeds the aggregate value of contractual outflows of
unsecured liabilities plus a conservative forecast of anticipated
contingent commitments. This barometer framework allows us to
manage liquidity to a desired profile under stress in order to be able
to continue to pursue activities for a period of time (also known as
a liquidity horizon) without changing business plans during times of
Credit Suisse-specific or market-specific stress. Under this frame-
work, we also have short-term targets based on additional stress
scenarios to ensure uninterrupted liquidity for short time frames.
Our liquidity management framework allows us to run stress
analyses on our balance sheet and off-balance sheet positions,
which include, but are not limited to, the following:
p A multiple-notch downgrade in the Bank’s long-term debt
credit ratings, which would require additional funding as a
result of certain contingent off-balance sheet obligations;
p Significant withdrawals from private banking client deposits;
p Potential cash outflows associated with the prime brokerage
business;
p Availability of secured funding becomes subject to significant
over-collateralization;
p Capital markets, certificates of deposit and q commercial
paper markets will not be available;
p Other money market access will be significantly reduced;
p A loss in funding value of unencumbered assets;

102
p The inaccessibility of assets held by subsidiaries due to regula-
tory, operational and other constraints;
p The possibility of providing non-contractual liquidity support
in times of market stress, including purchasing our unsecured
debt;
p Monitoring the concentration in sources of wholesale funding
and thus encourage funding diversification;
p Monitoring the composition and analysis of the unencumbered
assets;
p Restricted availability of foreign currency swap markets; and
p Other scenarios as deemed necessary from time to time.
Governance
Funding, liquidity, capital and our foreign exchange exposures in
the banking book are managed centrally by Treasury. Oversight of
these activities is provided by CARMC, a committee that includes
the chief executive officers (CEOs) of the Group and the divisions,
the Chief Financial Officer, the Chief Risk Officer (CRO) and the
Treasurer.
It is CARMC’s responsibility to review the capital position, bal-
ance sheet development, current and prospective funding, interest
rate risk and foreign exchange exposure and to define and moni-
tor adherence to internal risk limits. CARMC regularly reviews the
methodology and assumptions of our liquidity risk management
framework and determines the liquidity horizon to be maintained.
All liquidity stress tests are coordinated and overseen by the
CRO to ensure a consistent and coordinated approach across all
risk disciplines.
Contingency planning
In the event of a liquidity crisis, our liquidity contingency plan pro-
vides for specific actions to be taken depending on the nature
of the crisis. Our Treasurer activates the contingency plan upon
receipt of various reports that pre-established trigger levels have
been breached. Pre-defined further escalation ensures the involve-
ment of senior management and CARMC, the delivery of informa-
tion to regulators and the meeting of the funding execution com-
mittee, which establishes a specific action plan and coordinates
business and funding activities. In all cases, the plan’s priorities are
to strengthen liquidity (immediate), reduce funding needs (medium
term) and assess recovery options (longer term).
Liquidity pool
Treasury manages a sizeable portfolio of liquid assets, comprised
of cash and high-grade securities issued by governments and gov-
ernment agencies, which include sovereigns, central banks, public
sector enterprises and multilateral development banks. A portion
of the liquidity pool is generated through q reverse repurchase
agreements with top-rated counterparties. Most of these liquid
assets qualify as eligible assets under the BCBS liquidity stan-
dards. We are mindful of potential credit risk and therefore focus
our liquidity holdings strategy on cash held at central banks and
highly rated government bonds, also from short-term reverse
repurchase agreements. These bonds are eligible as collateral for
liquidity facilities with various central banks including the SNB, the
US Federal Reserve (Fed), the European Central Bank (ECB) and
the Bank of England. Our direct exposure on these bonds is lim-
ited to highly liquid, top-rated sovereign entities or fully guaranteed
agencies of sovereign entities. These securities may also serve to
meet liquidity requirements in major operating subsidiaries.
All securities, including those obtained from reverse repur-
chase agreements, are subject to a stress level qhaircut in our
barometer to reflect the risk that emergency funding may not be
available at market value in a stress scenario.
We centrally manage this liquidity pool and hold it at our main
operating entities. Holding securities in these entities ensures that
we can make liquidity and funding available to local entities in need
without delay.
As of December 31, 2014, our liquidity pool managed by Trea-
sury had a market value of CHF 162.5 billion. The liquidity pool
consisted of CHF 63.7 billion of cash held at major central banks,
primarily the Fed, the SNB and the ECB, and CHF 98.8 billion
of securities issued by governments and government agencies,
primarily from the US, Britain, Germany, France and Switzerland.
As of December 31, 2014, based on our internal model, the non-
cash assets in our liquidity pool were subject to an average stress
level haircut equal to approximately 7% of the market value of such
assets. This average haircut represents our assessment of overall
market risk at the time of measurement, potential monetization
capacity taking into account increased haircuts, market volatility
and the quality of the relevant securities. Compared to the haircut
as of December 31, 2013, the 7% haircut is lower because the
liquidity pool now excludes illiquid assets and the related impact of
a 100% haircut previously applied to such assets.
In addition to the liquidity portfolio managed by Treasury, there
is also a portfolio of unencumbered liquid assets managed by vari-
ous businesses, primarily in Investment Banking. These assets
generally include high-grade bonds and highly liquid equity securi-
ties that form part of major indices. Through coordination with the
businesses, Treasury can access these assets to generate liquid-
ity, if required. As of December 31, 2014, the portfolio that is not
managed by Treasury had a market value of CHF 29.1 billion, con-
sisting of CHF 7.9 billion of high-grade bonds and CHF 21.2 billion
of highly liquid equity securities. Under our internal model, an aver-
age stress-level haircut of 18% is applied to these assets.

Match
funded
Balance sheet funding structure
as of December 31, 2014 (CHF billion)
Reverse repurchase
agreements55 Repurchase
97 agreements
Encumbered
trading assets 78
36 Short positions
Funding-neutral
assets1
117
Cash due from banks 80
27 Other short-term liabilities2
78 Due to banks
26 Short-term borrowings
178 Long-term debt
45 Total equity
317 Deposits5
time 67
demand145
savings 78
fiduciary 27
Unencumbered
liquid assets3
174
Loans4
269
Other illiquid assets 148
Assets921 921 Liabilities and Equity
Funding-neutral
117 liabilities1
118%
coverage
1
Primarily includes brokerage receivables/payables, positive/negative replacement values
and cash collateral.
2
Primarily includes excess of funding neutral liabilities (brokerage payables) over corre-
sponding assets.
3
Primarily includes unencumbered trading assets, unencumbered investment securities and
excess reverse repurchase agreements, after haircuts.
4
Excludes loans with banks.
5
Excludes due to banks and certificates of deposit.
Liquidity pool managed by Treasury

Other

December 31, 2014
Swiss franc
US dollar
Euro
currencies
Total
Liquidity pool by currencies (CHF billion)

Cash held at central banks
31.5
29.6
1.3
1.3
63.7
Securities issued by governments and government agencies
4.6
66.6
17.1
10.5
98.8
Total liquidity pool managed by Treasury
36.1
96.2
18.4
11.8
162.5
Funding sources and uses
We fund our balance sheet primarily through core customer depos-
its, long-term debt, including structured notes, and shareholders’
equity. We monitor the funding sources, including their concentra-
tions, according to their currency, tenor, geography and maturity,
and whether they are secured or unsecured. A substantial portion
of our balance sheet is qmatch 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 and qreverse repurchase agreements
are highly liquid. A significant part of our assets, principally unen-
cumbered trading assets that support the securities business, is
comprised of securities inventories and collateralized receivables
that fluctuate and are generally liquid. These liquid assets are
available to settle short-term liabilities.
Loans, which comprise the largest component of our illiquid
assets, are funded by our core customer deposits, with an excess
coverage of 18% as of the end of 2014, compared to 22% as of
the end of 2013, reflecting an increase in loans and in deposits.
We fund other illiquid assets, including real estate, private equity
and other long-term investments as well as the qhaircut for the
illiquid portion of securities, with long-term debt and equity, in
which we try to maintain a substantial funding buffer.
Our core customer deposits totaled CHF 317 billion as of
the end of 2014, an increase of 7% compared to CHF 297 bil-
lion as of the end of 2013 and an increase of 11% compared to
CHF 285 billion as of the end of 2012, reflecting growth in the
customer deposit base in Private Banking Wealth Management
in 2014 and 2013. Core customer deposits are from clients with
whom we have a broad and longstanding relationship. Core cus-
tomer deposits exclude deposits from banks and certificates of
deposit. 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.
u Refer to the chart “Balance sheet funding structure” and “Balance sheet and
off-balance sheet” for further information.

104
Funding management
Treasury is responsible for the development, execution and regular
updating of our funding plan. The plan reflects projected business
growth, development of the balance sheet, future funding needs
and maturity profiles as well as the effects of changing market and
regulatory conditions.
Interest expense on long-term debt, excluding structured
notes, is monitored and managed relative to certain indices, such
as the qLondon Interbank Offered Rate (LIBOR), that are rele-
vant to the financial services industry. This approach to term fund-
ing best reflects the sensitivity of both our liabilities and our assets
to changes in interest rates. Our average funding cost, which is
allocated to the divisions, remained largely unchanged compared
to the end of 2013.
We continually manage the impact of funding spreads through
careful management of our liability maturity mix and opportunis-
tic issuance of debt. The effect of funding spreads on interest
expense depends on many factors, including the absolute level of
the indices on which our funding is based.
We diversify our long-term funding sources by issuing struc-
tured notes, which are debt securities on which the return is linked
to commodities, stocks, indices or currencies or other assets, as
well as covered bonds. We generally hedge structured notes with
positions in the underlying assets or qderivatives.
We also use other collateralized financings, including
qrepurchase agreements and securities lending agreements. The
level of our repurchase agreements fluctuates, reflecting market
opportunities, client needs for highly liquid collateral, such as US
treasuries and agency securities, and the impact of balance sheet
and qrisk-weighted asset (RWA) limits. In addition, matched book
trades, under which securities are purchased under agreements to
resell and are simultaneously sold under agreements to repurchase
with comparable maturities, earn spreads, are relatively risk free
and are generally related to client activity.
Our primary source of liquidity is funding through consolidated
entities. The funding through non-consolidated special purpose
entities (SPEs) and asset securitization activity is immaterial.
Contractual maturity of assets and liabilities
The following table provides contractual maturities of the assets
and liabilities specified as of the end of 2014. The contractual
maturities are an important source of information for liquidity risk
management. However, liquidity risk is also managed based on
an expected maturity that considers counterparty behavior and in
addition takes into account certain off-balance sheet items such
as q derivatives. Liquidity risk management performs extensive
analysis of counterparty behavioral assumptions under various
stress scenarios.

Contractual maturity of assets and liabilities

Between
Between
Between
Greater

Less than
1 to 3
3 to 12
1 to 5
than

end of 2014
On demand
1 month
months
months
years
5 years
Total
Assets (CHF million)

Cash and due from banks
72,820
1,993
1,480
114
0
2,942
79,349
Interest-bearing deposits with banks
0
408
415
321
51
49
1,244
Central bank funds sold, securities purchased under

resale agreements and securities borrowing transactions
63,227
67,224
19,953
11,727
872
205
163,208
Securities received as collateral, at fair value
25,973
881
0
0
0
0
26,854
Trading assets, at fair value
241,131
0
0
0
0
0
241,131
Investment securities
5
103
0
874
1,579
230
2,791
Other investments
947
0
0
51
428
7,187
8,613
Net loans
12,985
58,934
26,806
48,452
87,456
37,918
272,551
Premises and equipment
0
0
0
0
0
4,641
4,641
Goodwill
0
0
0
0
0
8,644
8,644
Other intangible assets
0
0
0
0
0
249
249
Brokerage receivables
41,629
0
0
0
0
0
41,629
Other assets
32,407
9,121
647
3,685
12,125
12,573
70,558
Total assets
491,124
138,664
49,301
65,224
102,511
74,638
921,462
Liabilities (CHF million)

Due to banks
12,543
4,451
3,136
4,194
1,330
355
26,009
Customer deposits
248,038
29,457
46,025
41,638
3,311
589
369,058

20,363
22,563
14,662
11,625
834
72
70,119
Obligation to return securities received as collateral, at fair value
25,973
881
0
0
0
0
26,854
Trading liabilities, at fair value
72,655
0
0
0
0
0
72,655
Short-term borrowings
0
4,851
11,778
9,292
0
0
25,921
Long-term debt
0
3,972
7,866
17,797
88,288
59,975
177,898
Brokerage payables
56,977
0
0
0
0
0
56,977
Other liabilities
32,008
12,220
456
856
3,778
1,652
50,970
Total liabilities
468,557
78,395
83,923
85,402
97,541
62,643
876,461
u Refer to “Contractual obligations and other commercial commitments” in III
– Treasury, Risk, Balance sheet and Off-balance sheet – Balance sheet, off-
balance sheet and other contractual obligations and “Note 32 – Guarantees and
commitments” in V – Consolidated financial statements – Credit Suisse Group for
further information on contractual maturities of guarantees and commitments.

106
Debt issuances and redemptions
Our long term debt includes senior and subordinated debt issued
in US-registered offerings and medium-term note programs, euro
market medium-term note programs, stand-alone offerings, struc-
tured note programs, covered bond programs, Australian dollar
domestic medium-term note programs and a Samurai shelf regis-
tration statement in Japan. As a global bank, we have access to
multiple markets worldwide and our major funding centers are New
York, London, Zurich 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. Our covered bond funding is in
the form of mortgage-backed loans funded by domestic covered
bonds issued through Pfandbriefbank Schweizerischer Hypothek-
arinstitute, one of two institutions established by a 1930 act of the
Swiss Parliament to centralize the issuance of covered bonds, or
from our own international covered bond program.
The following table provides information on long-term debt
issuances, maturities and redemptions in 2014, excluding struc-
tured notes.
Debt issuances and redemptions

Sub-
Long-term
in 2014
Senior
ordinated
debt
Long-term debt (CHF billion, notional value)

Issuances
37.3
2.5
39.8
   of which unsecured
31.5
2.5
34.0
   of which secured 1
5.8
–
5.8
Maturities / Redemptions
10.1
1.6
11.7
   of which unsecured
9.0
1.6
10.6
   of which secured 1
1.1
–
1.1
Excludes structured notes.
1
Includes covered bonds.
As of the end of 2014, we had outstanding long-term debt of
CHF 178 billion, which included senior and subordinated instru-
ments. We had CHF 50.5 billion and CHF 19.2 billion of struc-
tured notes and covered bonds outstanding, respectively, as of
the end of 2014 compared to CHF 34.8 billion and CHF 14.3 bil-
lion, respectively, as of the end of 2013. The weighted average
maturity of long-term debt was 6.1 years (including certificates of
deposit with a maturity of one year or longer, but excluding struc-
tured notes, and assuming callable securities are redeemed at final
maturity or in 2030 for instruments without a stated final maturity).
u Refer to “Note 24 – Long-term debt” in V – Consolidated financial statements
– Credit Suisse Group for further information.
Short-term borrowings increased 28% to CHF 25.9 billion as of
the end of 2014 compared to CHF 20.2 billion in 2013.
u Refer to “Capital issuances and redemptions” in Capital management for further
information on capital issuances, including buffer and progressive capital notes.
Funds transfer pricing
We maintain an internal funds transfer pricing system based on
market rates. Our funds transfer pricing system is designed to allo-
cate to our businesses all funding costs in a way that incentivizes
their efficient use of funding. Our funds transfer pricing system is
an essential tool that allocates to the businesses the short-term
and long-term costs of funding their balance sheet usages and
off-balance sheet contingencies. The funds transfer pricing frame-
work ensures the full funding costs allocation under normal busi-
ness conditions, but it is even of greater importance in a stressed
capital markets environment where raising funds is more challeng-
ing and expensive. Under this framework, our businesses are also
credited to the extent they provide long-term stable funding.
Cash flows from operating, investing and
financing activities
As a global financial institution, our cash flows are complex and
interrelated and bear little relation to our net earnings and net
assets. Consequently, we believe that traditional cash flow analy-
sis is less meaningful in evaluating our liquidity position than the
funding and liquidity policies described above. Cash flow analysis
may, however, be helpful in highlighting certain macro trends in our
business.
For the year ended December 31, 2014, net cash used in
operating activities of continuing operations was CHF 17.6 billion,
primarily reflecting a decrease in other liabilities and an increase in
trading assets and liabilities, partially offset by a decrease in other
assets. Our operating assets and liabilities vary significantly in the
normal course of business due to the amount and timing of cash
flows. Management believes cash flows from operations, available
cash balances and short-term and long-term borrowings will be
sufficient to fund our operating liquidity needs.
Our investing activities primarily include originating loans to be
held to maturity, other receivables and the investment securities
portfolio. For the year ended December 31, 2014, net cash of
CHF 10.3 billion was used in investing activities from continuing
operations, primarily due to an increase in loans, partially offset by
a decrease in central bank funds sold, securities purchased under
resale agreements and securities borrowing transactions.
Our financing activities primarily include the issuance of debt
and receipt of customer deposits. We pay annual dividends on our
common shares. In 2014, net cash provided by financing activities
of continuing operations was CHF 33.3 billion, mainly reflecting
the issuances of long-term debt and the increase in due to banks
and customer deposits, partly offset by repayments of long-term
debt and a decrease in central bank funds purchased, securi-
ties sold under q repurchase agreements and securities lending
transactions.

Credit ratings
Our access to the debt capital markets and our borrowing costs
depend significantly on our credit ratings. Rating agencies take
many factors into consideration in determining a company’s rat-
ing, including such factors as earnings performance, business
mix, market position, ownership, financial strategy, level of capital,
risk management policies and practices, management team and
the broader outlook for the financial services industry. The rat-
ing agencies may raise, lower or withdraw their ratings, or publicly
announce an intention to raise or lower their ratings, at any time.
Although retail and private bank deposits are generally less
sensitive to changes in a bank’s credit ratings, the cost and avail-
ability of other sources of unsecured external funding is generally
a function of credit ratings. Credit ratings are especially important
to us when competing in certain markets and when seeking to
engage in longer-term transactions, including qover-the-counter
(OTC) derivative instruments.
A downgrade in credit ratings could reduce our access to
capital markets, increase our borrowing costs, require us to post
additional collateral or allow counterparties to terminate trans-
actions under certain of our trading and collateralized financing
and derivative contracts. This, in turn, could reduce our liquidity
and negatively impact our operating results and financial position.
Our liquidity barometer takes into consideration contingent events
associated with a two-notch downgrade in our credit ratings. The
maximum impact of a simultaneous one, two or three-notch down-
grade 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 instru-
ments of CHF 1.3 billion, CHF 3.2 billion and CHF 4.4 billion,
respectively, as of December 31, 2014, and would not be mate-
rial to our liquidity and funding planning. If the downgrade does
not involve all three rating agencies, the impact may be smaller.
On February 3, 2015, Standard Poor’s downgraded a number
of European bank groups, including Credit Suisse’s holding com-
pany, Credit Suisse Group AG, which was downgraded one notch.
The ratings of Credit Suisse’s operating entities where most busi-
ness activities are conducted, including Credit Suisse AG, remain
unchanged at this time.
As of the end of 2014, we were compliant with the require-
ments related to maintaining a specific credit rating under these
derivative instruments.
u Refer to “Investor information” in the Appendix for further information on
Group and Bank credit ratings.

108
Capital management
As of the end of 2014, our CET1 ratio was 14.9% under Basel III and 10.1% on a look-through basis. Our RWA under
Basel III increased CHF 17.6 billion to CHF 291.4 billion compared to the end of 2013 and our tier 1 capital increased
CHF 3.7 billion to CHF 49.8 billion. Our Swiss leverage ratio was 4.9%.
Capital strategy and framework
Credit Suisse considers a strong and efficient capital position to be
a priority. Through our capital strategy, we continue to strengthen
our capital position and optimize the use of qRWA, particularly in
light of emerging regulatory capital requirements.
The overall capital needs of Credit Suisse reflect manage-
ment’s regulatory and credit rating objectives as well as our under-
lying risks. Our framework considers the capital needed to absorb
losses, both realized and unrealized, while remaining a strongly
capitalized institution. Multi-year projections and capital plans are
prepared for the Group and its major subsidiaries and reviewed
throughout the year with its regulators. These plans are subjected
to various stress tests, reflecting both macroeconomic and specific
risk scenarios. Capital contingency plans are developed in con-
nection with these stress tests to ensure that possible mitigating
actions are consistent with both the amount of capital at risk and
the market conditions for accessing additional capital.
Our capital management framework relies on economic capi-
tal, which is a comprehensive tool that is also used for risk man-
agement and performance measurement. Economic capital mea-
sures 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 as
reflected in our long-term credit rating.
u Refer to “Economic risk capital” in Risk Management for further information.
Regulatory capital framework
Overview
Effective January 1, 2013, the qBasel III framework was imple-
mented in Switzerland along with the Swiss q“Too Big to Fail” leg-
islation and regulations thereunder (Swiss Requirements). Together
with the related implementing ordinances, the legislation includes
capital, liquidity, leverage and large exposure requirements and
rules for emergency plans designed to maintain systemically rel-
evant functions in the event of threatened insolvency. Our related
disclosures are in accordance with our current interpretation of
such requirements, including relevant assumptions. Changes in the
interpretation of these requirements in Switzerland or in any of our
assumptions or estimates could result in different numbers from
those shown in this report. Also, our capital metrics fluctuate dur-
ing any reporting period in the ordinary course of business.
The Basel framework describes a range of options for deter-
mining capital requirements in order to provide banks and supervi-
sors the ability to select approaches that are most appropriate for
their operations and their financial market infrastructure. In gen-
eral, Credit Suisse has adopted the most advanced approaches,
which align with the way that risk is internally managed and provide
the greatest risk sensitivity.
For measuring credit risk, we received approval from qFINMA
to use the q advanced internal ratings-based approach (A-IRB).
Under the A-IRB for measuring credit risk, risk weights are deter-
mined by using internal risk parameters for qprobability of default
(PD), qloss given default (LGD) and effective maturity. The expo-
sure at default (EAD) is either derived from balance sheet values
or by using models.
For calculating the capital requirements for market risk, the
internal models approach, the standardized measurement method
and the standardized approach are used.
Non-counterparty risk arises from holdings of premises and
equipment, real estate and investments in real estate entities.
Under the Basel framework, operational risk is included in
RWA and we received approval from FINMA to use the qadvanced
measurement approach (AMA). Under the AMA for measuring
operational risk, we identified key scenarios that describe our
major operational risks using an event model.
References to phase-in and look-through included herein refer
to Basel III capital requirements and Swiss Requirements. Phase-
in reflects that, for the years 2014 – 2018, there will be a five-year
(20% per annum) phase-in of goodwill, other intangible assets and
other capital deductions (e.g., certain deferred tax assets and par-
ticipations in financial institutions) and the phase-out of an adjust-
ment for the accounting treatment of pension plans and, for the
years 2013 – 2022, there will be a phase-out of certain capital
instruments. Look-through assumes the full phase-in of goodwill
and other intangible assets and other regulatory adjustments and
the phase-out of certain capital instruments.
BIS Requirements
The qBCBS, the standard setting committee within the qBank
for International Settlements (BIS), issued the Basel III frame-
work, with higher minimum capital requirements and conserva-
tion and countercyclical buffers, revised risk-based capital mea-
sures, a leverage ratio and liquidity standards. The framework was
designed to strengthen the resilience of the banking sector and
requires banks to hold more capital, mainly in the form of common
equity. The new capital standards are being phased in from 2013
through 2018 and will be fully effective January 1, 2019 for those
countries that have adopted Basel III.
u Refer to the table “Basel III phase-in requirements for Credit Suisse” for capi-
tal requirements and applicable effective dates during the phase-in period.

Capital management
Basel III capital frameworks for Credit Suisse
BIS Requirements Swiss Requirements
3.66%2,3
Low-trigger
capital instruments
Countercyclical buffer
up to 2.5%1
CET1
Countercyclical buffer
up to 2.5%1
CET1
16.66%
Progressive
component
1
As of June 30, 2014, banks must hold, pursuant to both BIS and FINMA requirements,
CET1 capital in the amount of 2% of RWA pertaining to mortgage loans that finance
residential property in Switzerland.
2
The progressive component requirement is dependent on our size (leverage ratio exposure)
and the market share of our domestic systemically relevant business and is subject to
potential capital rebates that may be granted by FINMA. For 2015, FINMA increased our
2019 progressive component requirement from 3.66% to 4.05% due to the latest assess-
ment of relevant market shares.
3
Counts towards Basel III minimum requirements as tier 1 or tier 2 capital depending on the
quality of the underlying instruments.
4
Additional tier 1 instruments must provide for principal loss absorption through a conver-
sion into common equity or write-down feature. The trigger for such a conversion or write-
down must include a CET1 ratio of at least 5.125%.
4.5% CET1 4.5% CET1
3%3
High-trigger
capital instruments
Capital conservation
buffer 2.5% CET1
Additional CET1
buffer
5.5% CET1
Progressive buffer
for G-SIB 1.5% CET1
Additional tier 1
1.5%4
Tier 2
2%
12%
10%
8.5%
10%
Buffer
component
Minimum
component
Under Basel III, the minimum common equity tier 1 (CET1) require-
ment is 4.5% of RWA. In addition, a 2.5% CET1 capital conserva-
tion buffer is required to absorb losses in periods of financial and
economic stress. Banks that do not maintain this buffer will be
limited in their ability to pay dividends or make discretionary bonus
payments or other earnings distributions.
A progressive buffer between 1% and 2.5% (with a possible
additional 1% surcharge) of CET1, depending on a bank’s systemic
importance, is an additional capital requirement for global systemi-
cally important banks (G-SIB). The Financial Stability Board (FSB)
has identified us as a G-SIB and requires us to maintain a 1.5%
progressive buffer.
CET1 capital is subject to certain regulatory deductions and
other adjustments to common equity, including the deduction of
deferred tax assets for tax-loss carry-forwards, goodwill and other
intangible assets and investments in banking and finance entities.
In addition to the CET1 requirements, there is also a require-
ment for 1.5% additional tier 1 capital and 2% tier 2 capital. These
requirements may also be met with CET1 capital. To qualify as
additional tier 1 under Basel III, capital instruments must provide
for principal loss absorption through a conversion into common
equity or a write-down of principal feature. The trigger for such
conversion or write-down must include a CET1 ratio of at least
5.125%.
Basel III further provides for a countercyclical buffer that could
require banks to hold up to 2.5% of CET1 or other capital that
would be available to fully absorb losses. This requirement is
expected to be imposed by national regulators where credit growth
is deemed to be excessive and leading to the build-up of system-
wide risk.
Capital instruments that do not meet the strict criteria for inclu-
sion in CET1 are excluded. Capital instruments that would no lon-
ger qualify as tier 1 or tier 2 capital are phased out. In addition,
instruments with an incentive to redeem prior to their stated matu-
rity, if any, are phased out at their effective maturity date, generally
the date of the first step-up coupon.

110
Basel III phase-in requirements for Credit Suisse
Effective January 1, for the applicable year
2014
2015
2016
2017
2018
2019
Capital ratios

CET1
4.0% 1
4.5%
4.5%
4.5%
4.5%
4.5%
Capital conservation buffer

0.625% 1
1.250% 1
1.875% 1
2.5%
Progressive buffer for G-SIB

0.375% 1
0.750% 1
1.125% 1
1.5%
Total CET1
4.0%
4.5%
5.5%
6.5%
7.5%
8.5%
Additional tier 1
1.5%
1.5%
1.5%
1.5%
1.5%
1.5%
Total tier 1
5.5%
6.0%
7.0%
8.0%
9.0%
10.0%
Tier 2
2.5% 1
2.0%
2.0%
2.0%
2.0%
2.0%
Total capital
8.0%
8.0%
9.0%
10.0%
11.0%
12.0%
Phase-in deductions from CET1 2
20.0% 1
40.0% 1
60.0% 1
80.0% 1
100.0%
100.0%
Capital instruments subject to phase-out
Phased out over a 10-year horizon beginning 2013 through 2022
1
Indicates phase-in period.
2
Includes goodwill, other intangible assets, certain deferred tax assets and participations in financial institutions.
Swiss Requirements
The legislation implementing the Basel III framework in Switzerland
in respect of capital requirements for systemically relevant banks
goes beyond Basel III’s minimum standards, including requiring us,
as a systemically relevant bank, to have the following minimum,
buffer and progressive components.
u Refer to the chart “Swiss capital and leverage ratio phase-in requirements for
Credit Suisse” for Swiss capital requirements and applicable effective dates dur-
ing the phase-in period.
The minimum requirement of CET1 capital is 4.5% of RWA.
The buffer requirement is 8.5% and can be met with additional
CET1 capital of 5.5% of RWA and a maximum of 3% of high-
trigger capital instruments. High-trigger capital instruments must
convert into common equity or be written off if the CET1 ratio falls
below 7%.
The progressive component requirement is dependent on our
size (leverage ratio exposure) and the market share of our domes-
tic systemically relevant business. Effective in 2014, FINMA set
our progressive component requirement at 3.66% for 2019. In
July 2014, FINMA notified us that, effective in 2015, the pro-
gressive component requirement for 2019 will be increased from
3.66% to 4.05% due to the latest assessment of our relevant
market share. The progressive component requirement may be
met with CET1 capital or low-trigger capital instruments. In order
to qualify, low-trigger capital instruments must convert into com-
mon equity or be written off if the CET1 ratio falls below a speci-
fied percentage, the lowest of which may be 5%. In addition, until
the end of 2017, the progressive component requirement may also
be met with high-trigger capital instruments. Both high and low-
trigger capital instruments must comply with the Basel III minimum
requirements for tier 2 capital (including subordination, point-of-
non-viability loss absorption and minimum maturity).
Similar to Basel III, the Swiss Requirements include a sup-
plemental countercyclical buffer of up to 2.5% of RWA that can
be activated during periods of excess credit growth. Effective
September 30, 2013, the buffer was activated and initially required
banks to hold CET1 capital in the amount of 1% of their RWA per-
taining to mortgages that finance residential property in Switzer-
land. In January 2014, upon the request of the SNB, the Swiss
Federal Council increased this countercyclical buffer from 1% to
2%, effective June 30, 2014. As of the end of 2014, our coun-
tercyclical buffer, which applies pursuant to both BIS and FINMA
requirements, was CHF 297 million, which is equivalent to an
additional requirement of 0.1% of CET1 capital.
In 2013, FINMA introduced increased capital charges for
mortgages that finance owner occupied residential property in
Switzerland (mortgage multiplier) to be phased in through January
1, 2019. The mortgage multiplier applies for purposes of both BIS
and FINMA requirements.
In December 2013, FINMA issued a decree (FINMA Decree)
specifying capital adequacy requirements for the Bank on a stand-
alone basis (Bank parent company), and the Bank and the Group,
each on a consolidated basis, as systemically relevant institutions.
Beginning in the first quarter of 2014, we adjusted the presen-
tation of our Swiss capital metrics and terminology and we now
refer to Swiss Core Capital as Swiss CET1 capital and Swiss Total
Capital as Swiss total eligible capital. Swiss Total Capital previ-
ously reflected the tier 1 participation securities, which were fully
redeemed in the first quarter of 2014. Swiss CET1 capital consists
of BIS CET1 capital and certain other Swiss adjustments. Swiss
total eligible capital consists of Swiss CET1 capital, high-trigger
capital instruments, low-trigger capital instruments, additional tier
1 instruments and tier 2 instruments subject to phase-out and
deductions from additional tier 1 and tier 2 capital.
We must also comply with a leverage ratio applicable to Swiss
systemically relevant banks (Swiss leverage ratio). This leverage
ratio must be at least 24% of each of the respective minimum,
buffer and progressive component requirements. Since the ratio
is defined by reference to capital requirements subject to phase-in
arrangements, the ratio will also be phased in.

Capital management
Swiss capital and leverage ratio phase-in requirements for Credit Suisse
For 2014
Capital ratio requirements
Swiss leverage ratio requirements
6.75%
1.62%
7.37%
1.77%
8.12%
1.95%
8.75%
2.10%
9.38%
2.25%
10.00%
2.40%
1.75%
0.42%
2.25%
0.54%
2.63%
0.63%
2.87%
0.69%
3.00%
0.72%
3.00%
0.72%
1.68%
0.40%
2.29%
0.55%
2.75%
0.66%
3.13%
0.75%
3.43%
0.82%
3.66%1
0.88%
10.18%
2.44%
11.91%
2.86%
13.50%
3.24%
14.75%
3.54%
15.81%
3.79%
16.66%
4.00%
p Swiss CET1 capital p High-trigger capital instruments p Low-trigger capital instruments
Excludes countercyclical buffer that was required as of September 30, 2013.
1
The progressive component requirement is dependent on our size (leverage ratio exposure) and the market share of our domestic systemically relevant business and is subject to potential
capital rebates that may be granted by FINMA. For 2015, FINMA increased our 2019 progressive component requirement from 3.66% to 4.05% due to the latest assessment of our
relevant market share, which leads to a total capital ratio requirement of 17.05% and a Swiss leverage ratio requirement of 4.09%.
2014 2015 2016 2017 20192018
Respective
capital ratio
requirements
multiplied
by 24%
Progressive component1
1.68% 2.29% 2.75% 3.13% 3.43% 3.66%
Buffer component 4.50% 5.12% 6.25% 7.12% 7.88% 8.50%
Minimum component 4.00% 4.50% 4.50% 4.50% 4.50% 4.50%
Effective as of January 1,
for the applicable year
Risk measurement models
Within the Basel framework for FINMA regulatory capital pur-
poses, we implemented risk measurement models, including an
qincremental risk charge (IRC), qstressed Value-at-Risk (VaR),
qrisks not in VaR (RNIV) and advanced qcredit valuation adjust-
ment (CVA). In 2014, the comprehensive risk measure model was
discontinued due to the small size of the relevant trading portfolio
to which it was applied.
The IRC is a regulatory capital charge for default and migration
risk on positions in the trading books and is intended to comple-
ment additional standards being applied to the q VaR modeling
framework, including q 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 finan-
cial stress and helps reduce the pro-cyclicality of the minimum
capital requirements for market risk. RNIV are risks that are not
currently implemented within the Group’s VaR model, such as cer-
tain basis risks, higher order risks and cross risks. Advanced CVA
covers the risk of mark-to-market losses on the expected counter-
party risk arising from changes in a counterparty’s credit spreads.
For capital purposes, FINMA, in line with BIS requirements,
uses a multiplier to impose an increase in market risk capital for
every q regulatory VaR exception over four in the prior rolling
12-month period calculated using a subset of actual daily trading
revenues. The subset of actual daily trading revenues is defined on
a consistent basis as the gains and losses for the regulatory VaR
model but excludes non-market elements such as fees, commis-
sions, non-market-related provisions, gains and losses from intra-
day trading, cancellations and terminations. In 2014, our market
risk capital multiplier remained at FINMA and BIS minimum levels
and we did not experience an increase in market risk capital.
u Refer to “Market risk” in Risk management for further information.

112
Regulatory developments and proposals
In December 2014, the group of experts appointed by the Swiss
Federal Council on the further development of the financial mar-
ket strategy (Brunetti Commission) issued its final report. The
report consisted of recommendations with respect to, among
other things, safeguarding systemic stability and strengthening of
the Swiss q“Too Big to Fail” regime through measures such as a
review of the qRWA calculation method, a recalibration of capital
requirements, adjustments to capital quality and supplementing
the “Too Big to Fail” regime with q total loss-absorbing capac-
ity (TLAC) requirements so that sufficient regulatory capital and
other loss-absorbing instruments are available to make recovery
or orderly resolution possible. In February 2015, the report was
adopted by the Swiss Federal Council.
In December 2014, the qBCBS published its final securitiza-
tion framework standard, which will come into effect in January
2018. The standard promotes internal ratings-based approaches
over the use of external ratings for determining risk weights of
securitization exposures.
In December 2014, the BCBS issued its third consultative
paper on the fundamental review of the trading book. The paper,
which comprises a detailed set of proposals for a comprehensive
revision of the market risk framework, is expected to be finalized
by the end of 2015. It is expected to be effective January 1, 2018,
at the earliest.
In November 2014, following the January 2014 publication by
the BCBS, the standard setting committee within the qBIS, of the
BIS leverage ratio framework, and its related disclosure require-
ments, qFINMA released its circular regarding the implementa-
tion of the leverage ratio requirements in Switzerland. While the
calculation of the exposure is aligned with BCBS requirements,
the FINMA leverage ratio continues to have to be at least 24% of
each of the respective minimum, buffer and progressive compo-
nent requirements applicable to Swiss systemically relevant banks.
While FINMA allows banks to choose a one-year transition period,
the Group has implemented the new leverage framework as of
January 1, 2015. In January 2014, the BCBS issued the frame-
work and disclosure requirements for the qBasel III leverage ratio.
Under the BIS framework, the leverage ratio, which measures tier
1 capital against exposure, must be at least 3%. Although this
leverage ratio will not become effective until 2018, banks will be
required to disclose the ratio on a consolidated basis beginning in
2015, subject to implementation by national regulators.
In November 2014, the FSB, in consultation with the BCBS,
published a consultative document proposing a global frame-
work on TLAC requirements applicable to G-SIBs, such as Credit
Suisse. The purpose of the proposed requirements is to enhance
the ability of regulators to recapitalize a G-SIB at the point of non-
viability in a manner that minimizes systemic disruption, preserves
critical functions and limits the exposure of public sector funds.
TLAC-eligible instruments would include instruments that count
towards satisfying minimum regulatory capital requirements, as
well as long-term unsecured debt instruments that have remaining
maturities of no less than one year, are subordinated by statute,
corporate structure or contract to certain excluded liabilities,
including deposits, are held by unaffiliated third parties and meet
certain other requirements. Excluding any applicable regulatory
capital buffers that are otherwise required, the minimum TLAC
requirement will be at least 16% to 20% of a G-SIB’s RWA. In
addition, the minimum TLAC requirement must also be at least
twice the capital required to meet the relevant tier 1 leverage ratio
requirement. The TLAC framework is expected to be finalized in
the second half of 2015 and become effective no sooner than
January 2019.
In November 2014, FINMA confirmed that the implementa-
tion timeline in Switzerland for the previously issued BCBS final
standards on equity investments in funds, counterparty credit risk,
central counterparties and large exposures will be in line with the
international timelines.
In April 2014, the BCBS finalized its large exposures frame-
work standard, with implementation required by January 1, 2019.
The standard calls for a limit on all of a bank’s exposures to a
single counterparty. In the case of G-SIBs like us, the limit is 15%
of tier 1 capital.
In April 2014, the BCBS published its final standard for the
capital treatment of bank exposures to central counterparties.
The standard introduces a cap on capital charges applied to bank
exposures to qualifying central counterparties. Disclosure require-
ments will be effective January 1, 2017.
In March 2014, the BCBS published a final standard on the
treatment of counterparty credit risk associated with qderivative
transactions. The new requirement will replace the current expo-
sure method and the existing standardized method and will become
effective January 1, 2017.
From January 1, 2014, the Capital Requirement Directive
(CRD) IV package of legislation (comprising a directive and a
regulation) will replace the current CRD directive with new mea-
sures implementing Basel III and other requirements. As part of
the transition to CRD IV, the UK’s Prudential Regulation Authority
has reviewed the permissions of UK financial institutions, includ-
ing those of our subsidiaries, to use their current internal modeling
for capital calculation purposes as well as new models required for
CRD IV compliance. The majority of the models for our subsidiar-
ies were approved and certain models will require updates in line
with the latest BCBS guidance and regulatory feedback on model-
ing techniques.
In accordance with BCBS’s G-SIB loss absorbency require-
ments and FINMA’s capital adequacy disclosure requirements,
banks with a balance sheet exceeding EUR 200 billion must pub-
lish annually 12 financial indicators, such as size and complex-
ity. Depending on these financial indicators, the FSB will set the
progressive buffer for G-SIBs. The reporting requirement became
effective December 31, 2013 and we included the required dis-
closures as of such date on our website as required before April
30, 2014.
In December 2013, the BCBS published its final standard
on the treatment of banks’ equity investments in funds held in
the banking book, which requires banks to look through to the

Capital management
fund’s underlying assets in order to determine the risk weight of
the bank’s investment in the fund. Implementation of the standard
is required by January 1, 2017.
In July 2013, the Fed, the Federal Deposit Insurance Corpo-
ration (FDIC) and the Office of the Comptroller of the Currency
(OCC) released final capital rules that overhaul the existing US
bank regulatory capital rules and implement the Basel III frame-
work and certain provisions of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (Dodd-Frank Act). The final rules
are largely consistent with the Basel III framework published by the
BCBS, although they diverge in several important respects due
to requirements of the Dodd-Frank Act and do not address other,
more recent aspects of the Basel III framework. In February 2014,
the Fed adopted a rule under the Dodd-Frank Act that creates
a new framework for regulation of the US operations of foreign
banking organizations. The rule generally requires Credit Suisse
to create a single US intermediate holding company (IHC) to hold
all of its US subsidiaries with limited exceptions; this requirement
will not apply to Credit Suisse AG’s New York branch (New York
Branch), but will apply to other Credit Suisse US entities. The IHC
will be subject to local risk-based capital and leverage require-
ments. In addition, both the IHC itself and the combined US
operations of Credit Suisse (including the IHC and the New York
Branch) will be subject to other new prudential requirements. The
new framework’s prudential requirements generally become effec-
tive in July 2016.
FINMA Decree
The SNB has previously designated the Group as a financial group
of systemic importance under applicable Swiss law. Following that
designation, in December 2013 the FINMA Decree was issued. In
addition to the capital adequacy requirements described above, it
also specified liquidity, risk diversification and disclosure require-
ments for the Bank parent company.
The FINMA Decree became effective February 2, 2014 and
requires the Group to fully comply with the special requirements for
systemically important banks set out in the Capital Adequacy Ordi-
nance. To facilitate the application of these requirements within the
Group and to allow Credit Suisse to continue its central treasury
policy, the FINMA Decree also references forms of relief granted
by FINMA within its stated authority that is designed to prevent the
application of requirements at the Bank parent company level from
effectively increasing the regulatory capital requirements appli-
cable to the Group, notwithstanding all reasonable efforts by the
Group to avoid such a situation. FINMA also requires certain capi-
tal disclosures at the Bank parent company level as of the end of
March 31, 2014, which can be found on our website. In addition,
the FINMA Decree requires the disclosure of the following forms
of relief:
p New approach to standalone capital requirements: With-
drawal of the previously granted form of relief for funding that the
Bank parent company provides to Group subsidiaries. The new
approach results in an increase in RWA at the Bank parent com-
pany level.
p Reduction of regulatory capital requirement: Risk-
weighted capital requirement reduced to 14% from a current
16.66%, of which at least 10% must be held in the form of
CET1 capital. This measure is a form of relief at the Bank
parent company level in comparison with the minimum require-
ments set out by FINMA at the Group level.
p Equal treatment of direct and indirect investments:
Direct and indirect investments in Group subsidiaries that are
active in the financial sector and are held by the Bank parent
company are treated equally. Directly and indirectly held invest-
ments in Group subsidiaries up to a bank-specific threshold
set by FINMA are risk-weighted at 200%. Amounts above the
threshold are deducted 50% from CET1 capital and 50% from
total eligible capital. The deduction approach is similar to the
treatment of capital instruments under Basel III and contin-
ues the previously applicable treatment under Swiss regula-
tions. This measure may have the effect of changing RWA
and/or total eligible capital. Depending on the calibration of
the threshold, investments in Group subsidiaries require total
eligible capital in a range between 28% (if all investments are
risk-weighted) and 100% (if all investments are deducted from
total eligible capital).
Overall, withdrawal of previous forms of relief, the introduction
of stricter requirements and the provision of new forms of relief
avoids a situation in which requirements at the Bank parent com-
pany would effectively dictate requirements at the Group level and,
as such, effectively lead to higher capital ratios at the Bank parent
company level.
Capital issuances and redemptions
Issuances
In March 2014, employees holding 2011 Partner Asset Facility
(PAF2) awards, which were restructured, reallocated a portion
of their PAF2 holdings to Contingent Capital Awards (CCA). The
PAF2 reallocation, together with CCA granted in January 2014 as
part of 2013 deferred variable compensation, added CHF 0.5 bil-
lion to regulatory capital in the first quarter of 2014. CCA qualify
as additional tier 1 and high-trigger capital instruments for regula-
tory capital purposes.
In June 2014, we issued USD 2.5 billion 6.25% tier 1 capital
notes.
Redemptions
In March 2014, pursuant to a tender offer, we repurchased
USD 1.4 billion of outstanding 7.875% perpetual series B subor-
dinated tier 1 participation securities. We subsequently exercised
a regulatory call of the USD 99 million of such securities that had
not been tendered, with the result that no such securities remain
outstanding. Prior to the announcement of the tender offer and as
advised by qFINMA, these tier 1 participation securities formed
part of Swiss CET1 capital under Swiss Requirements, whereas
under q Basel III, these instruments were included in additional
tier 1 instruments subject to phase out.

114
u Refer to “Note 28 – Employee deferred compensation” in V – Consolidated
financial statements – Credit Suisse Group for further information on CCA.
The issuances and tier 1 instrument redemptions effected in 2014
were approved by FINMA.
Contingent convertible capital instruments
We have issued high-trigger and low-trigger capital instruments to
meet our capital requirements. Our high-trigger instruments (with
the exception of CCA) mandatorily convert into our ordinary shares
upon the occurrence of certain specified triggering events. These
events include our CET1 ratio falling below 7% (or any lower appli-
cable minimum threshold), or a determination by FINMA that con-
version is necessary, or that we require public sector capital sup-
port, to prevent us from becoming insolvent, bankrupt or unable to
pay a material amount of our debts, or other similar circumstances.
Conversion can only be prevented if FINMA, at our request, is sat-
isfied that certain conditions exist and conversion is not required.
High-trigger instruments are designed to absorb losses before
our other capital instruments, including the low-trigger capital
instruments. The features of low-trigger capital instruments are
described below. CCA would not convert into common equity, but
would be written down to zero upon a trigger event.
Higher Trigger Capital Amount
The capital ratio write-down triggers for certain of our outstanding
capital instruments take into account the fact that other outstand-
ing capital instruments that contain relatively higher capital ratios
as part of their trigger feature are expected to convert or be writ-
ten down prior to the write-down of such capital instruments. The
amount of additional capital that is expected to be contributed by
such conversion or write-down is referred to as the Higher Trigger
Capital Amount.
In 2013, we issued CHF 290 million 6.0% tier 1 capital notes
and USD 2.25 billion 7.5% tier 1 capital notes, and in 2014 we
issued USD 2.5 billion 6.25% tier 1 capital notes (collectively, Tier
1 Capital Notes). In 2013, we also issued USD 2.5 billion 6.5%
tier 2 capital notes and EUR 1.25 billion 5.75% tier 2 capital notes
(collectively, Tier 2 Capital Notes).
Each of the series of Tier 1 Capital Notes and Tier 2 Capital
Notes qualify as low-trigger capital instruments and have a write-
down feature, which means that the full principal amount of the
notes will be permanently written down to zero upon the occur-
rence of specified triggering events. These events occur when
the amount of our CET1 ratio, together with an additional ratio
described below that takes into account other outstanding capital
instruments, falls below 5.125% for the Tier 1 Capital Notes and
5% for the Tier 2 Capital Notes. The write-down can only be pre-
vented if FINMA, at our request, is satisfied that certain conditions
exist and determines a write-down is not required. The capital
notes will also be written down upon a non-viability event, which
occurs when FINMA determines that a write-down is necessary,
or that we require extraordinary public sector capital support, to
prevent us from becoming insolvent, bankrupt or unable to pay a
material amount of our debts, or other similar circumstances.
With respect to the capital instruments that specify a trigger
event if the CET1 ratio were to fall below 5.125%, the Higher Trig-
ger Capital Amount was CHF 8.9 billion and the Higher Trigger
Capital Ratio (i.e., the ratio of the Higher Trigger Capital Amount
to the aggregate of all qRWA of the Group) was 3.1%, both as of
the end of 2014.
With respect to the capital instruments that specify a trigger
event if the CET1 ratio were to fall below 5%, the Higher Trigger
Capital Amount was CHF 14.0 billion and the Higher Trigger Capi-
tal Ratio was 4.8%, both as of the end of 2014.
u Refer to the table “BIS statistics – Basel III – Group” for further information on
the BIS statistics used to calculate such measures.
bis Capital metrics
Regulatory capital and ratios – Group
Our CET1 ratio was 14.9% as of the end of 2014 compared to
15.7% as of the end of 2013, reflecting higher qRWA, partially
offset by slightly higher CET1 capital. Our tier 1 ratio was 17.1%
as of the end of 2014 compared to 16.8% as of the end of 2013.
Our total capital ratio was 20.8% as of the end of 2014 compared
to 20.6% as of the end of 2013.
CET1 capital was CHF 43.3 billion as of the end of 2014 com-
pared to CHF 43.0 billion as of the end of 2013, reflecting a posi-
tive foreign exchange impact and net income. CET1 capital was
negatively impacted by the 20% phase-in of regulatory deduc-
tions from CET1, including goodwill, other intangible assets and
certain deferred tax assets, a 20% decrease in the adjustment for
the accounting treatment of pension plans, pursuant to phase-in
requirements, and the cash component of a dividend accrual.
Additional tier 1 capital increased to CHF 6.5 billion as of the
end of 2014 compared to CHF 3.1 billion as of the end of 2013,
mainly due to the issuance of the tier 1 capital notes and CCA, a
20% decrease in phase-in deductions, including goodwill, other
intangible assets and other capital deductions, and the positive
foreign exchange impact, partially offset by the redemption of the
tier 1 participation securities.
Tier 2 capital was CHF 10.9 billion as of the end of 2014 com-
pared to CHF 10.2 billion as of the end of 2013, mainly due to the
positive foreign exchange impact.
Total eligible capital as of the end of 2014 was CHF 60.8 bil-
lion compared to CHF 56.3 billion as of the end of 2013.
We reported a look-through CET1 ratio of 10.1% as of the end
of 2014, compared to a year-end target of 10.0% and a long-term
target of 11.0%. As of the end of 2014, the look-through total cap-
ital ratio was 16.5%, compared to 15.1% as of the end of 2013.

Capital management
BIS statistics – Basel III – Group

Phase-in
Look-through
end of
2014
2013
% change
2014
2013
% change

43,959
42,164
4
43,959
42,164
4
Regulatory adjustments 1
(375)
(1,069)
(65)
(375)
(1,069)
(65)
Adjustments subject to phase-in
(262) 2
1,894 3
–
(15,008)
(14,615)
3
CET1 capital
43,322
42,989
1
28,576
26,480
8
Additional tier 1 instruments
11,316 4
7,484
51
11,316
7,484
51
Additional tier 1 instruments subject to phase-out 5
2,473
3,652
(32)
–
–
–
Deductions from additional tier 1 capital
(7,307) 6
(8,064)
(9)
–
–
–
Additional tier 1 capital
6,482
3,072
111
11,316
7,484
51
49,804
46,061
8
39,892
33,964
17
Tier 2 instruments
6,984 7
6,263
12
6,984
6,263
12
Tier 2 instruments subject to phase-out
4,190
4,321
(3)
–
–
–
Deductions from tier 2 capital
(227)
(357)
(36)
–
(18)
100
Tier 2 capital
10,947
10,227
7
6,984
6,245
12
60,751
56,288
8
46,876
40,209
17

Credit risk
192,663
175,631
10
185,501
167,888
10
Market risk
34,468
39,133
(12)
34,468
39,133
(12)
Operational risk
58,413
53,075
10
58,413
53,075
10
Non-counterparty risk
5,866
6,007
(2)
5,866
6,007
(2)
Risk-weighted assets
291,410
273,846
6
284,248
266,103
7
Capital ratios (%)

CET1 ratio
14.9
15.7
–
10.1
10.0
–
Tier 1 ratio
17.1
16.8
–
14.0
12.8
–
Total capital ratio
20.8
20.6
–
16.5
15.1
–
1
Includes regulatory adjustments not subject to phase-in, including a cumulative dividend accrual.
2
Reflects 20% phase-in deductions, including goodwill, other intangible assets and certain deferred tax assets, and 80% of an adjustment for the accounting treatment of pension plans
pursuant to phase-in requirements.
3
Includes an adjustment for the accounting treatment of pension plans pursuant to phase-in requirements and other regulatory adjustments.
4
Consists of high-trigger and low-trigger capital instruments. Of this amount, CHF 6.2 billion consists of capital instruments with a capital ratio write-down trigger of 7% and CHF 5.1 billion
consists of capital instruments with a capital ratio write-down trigger of 5.125%.
5
Includes hybrid capital instruments that are subject to phase-out.
6
Includes 80% of goodwill and other intangible assets (CHF 7.1 billion) and other capital deductions, including gains/(losses) due to changes in own credit risk on fair valued financial liabili-
ties, that will be deducted from CET1 once Basel III is fully implemented.
7
consists of capital instruments with a capital ratio write-down trigger of 5%.

116
20121
2013 2014
300
250
100
150
200
50
0
292.5
273.8
291.4
15.2
16.8 17.1
15.7 14.914.2
Risk-weighted assets and capital ratios – Basel III
p Risk-weighted assets (in CHF billion) p CET1 ratio (in %) p Tier 1 ratio (in %)
1
Our 2012 calculations of capital and ratio amounts, which are presented in order to show
meaningful comparative information, use estimates as of December 31, 2012, as if the
Basel III framework had been implemented in Switzerland as of such date.
Capital movement – Basel III

2014
CET1 capital (CHF million)
Balance at beginning of period
42,989
Net income
1,875
Foreign exchange impact
1,967
Impact of deductions relating to phase-in requirements
(3,015)
Other 1
(494)
Balance at end of period
43,322
Additional tier 1 capital (CHF million)
3,072
554
1,607
Issuances
2,721
Redemptions
(1,590)
Other 2
118
6,482
Tier 2 capital (CHF million)
10,227
699
62
Other
(41)
10,947
1
Reflects the net effect of share-based compensation, the impact of a dividend accrual,
which includes the assumption that 50% of the proposed dividend is distributed in
shares, the net impact of pension-related adjustments and a change in other regulatory
adjustments.
2
Reflects a change in regulatory adjustments, primarily gains and losses due to changes
in own credit risk on fair valued financial liabilities that will be deducted from CET1 once
Basel III is fully implemented, and other movements on additional tier 1 capital instruments.
Other regulatory disclosures
In connection with the implementation of q Basel III, additional
regulatory disclosures are required. Additional information on capi-
tal instruments, including the main features and terms and condi-
tions of regulatory capital instruments that form part of the eligible
capital base of the Group, G-SIB financial indicators, subsidiary
regulatory reporting, reconciliation requirements, Pillar 3 disclo-
sures and additional capital disclosures for the Bank parent com-
pany can be found on our website.
u Refer to https://www.credit-suisse.com/regulatorydisclosures for additional
information.
Our balance sheet positions and off-balance sheet exposures
translate into RWA that are categorized as market, credit, opera-
tional and non-counterparty-risk RWA. When assessing RWA, it
is not the nominal size, but the nature (including qrisk mitigation
such as collateral or hedges) of the balance sheet positions or off-
balance sheet exposures that determines the RWA. Market risk
RWA reflect the capital requirements of potential changes in the
qfair values of financial instruments in response to market move-
ments inherent in both balance sheet and 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 deterio-
ration in the credit quality of the borrower or counterparty. Under
Basel III, certain regulatory capital adjustments are dependent
on the level of CET1 capital (thresholds). The amount above the
threshold is deducted from CET1 capital and the amount below
the threshold is risk weighted. RWA subject to such threshold
adjustments are included in credit risk RWA. 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.
Risk-weighted assets by division – Basel III
end of
2014
2013
% change
Risk-weighted assets by division (CHF million)

Private Banking Wealth Management
108,261
95,507
13
Investment Banking
159,815
155,290
3
Corporate Center
23,334
23,049
1
291,410
273,846
6

Capital management
Risk-weighted asset movement by risk type – Basel III

Non-
Total risk-

Credit risk
Credit risk

Operational
counterparty
weighted

(excluding CVA)
(CVA)
Market risk
risk
risk
assets
2014 (CHF million)
164,924
10,707
39,133
53,075
6,007
273,846
11,976
669
1,742
0
0
14,387
Acquisitions and disposals
(143)
0
0
0
0
(143)
Movements in risk levels
(9,383)
1,279
(7,209)
0
(141)
(15,454)
of which credit risk – book size 1
(6,920)
2,033
–
–
–
–
of which credit risk – book quality 2
(2,463)
(754)
–
–
–
–
Model and parameter updates 3
1,048
(1,637)
(1,785)
2,700
0
326
Methodology and policy – internal 4
4,512
4,112
(995)
(2,062)
0
5,567
Methodology and policy – external 5
4,599
0
3,582
4,700
0
12,881
177,533
15,130
34,468
58,413
5,866
291,410
1
Represents changes in portfolio size.
2
Represents changes in average risk weighting across credit risk classes.
3
Represents movements arising from updates to models and recalibrations of parameters.
4
Represents internal changes impacting how exposures are treated.
5
Represents externally prescribed regulatory changes impacting how exposures are treated.
RWA increased 6% from CHF 273.8 billion as of the end of 2013
to CHF 291.4 billion as of the end of 2014, primarily reflecting a
significant increase resulting from the foreign exchange impact.
Increases in credit risk and operational risk were partially offset by
a decrease in market risk.
u Refer to “Risk-weighted assets movement by risk type – Basel III” for further
information.
Excluding the foreign exchange impact, the increase in credit risk
(excluding qCVA) was primarily driven by increases in methodol-
ogy changes and model and parameter updates, partially offset by
decreases in credit risk levels within Investment Banking. External
methodology changes resulted from an increase in the risk weight-
ing of private equity positions in Private Banking Wealth Man-
agement, particularly within Asset Management, and in Invest-
ment Banking as well as an increase resulting from the mortgage
multiplier relating to the financing of certain residential properties
in Switzerland. Internal methodology changes were mainly due to
the removal of initial margin benefits to the q derivatives model
within Investment Banking. These increases were mostly offset
by decreases in credit risk levels. The decrease in credit risk levels
attributed to book size was mainly driven by decreases in deriva-
tives and commercial loans as well as the securitization of qOTC
derivatives portfolios in Investment Banking. The decrease in credit
risk levels attributed to book quality was mainly driven by Invest-
ment Banking as a result of decreases in average risk weighting
for lending across emerging markets and leveraged financing.
Excluding the foreign exchange impact, the increase in credit
risk related to CVA was primarily driven by increases in inter-
nal methodology changes and increases in credit risk levels, par-
tially offset by model and parameter updates. Increases in internal
methodology changes were due to changes in the hedging of CVA
risk and the modeling of derivatives exposures, partially offset by
decreases resulting from the improvement of the systems and pro-
cesses with respect to OTC derivatives within Investment Bank-
ing. The increase in credit risk levels attributable to book size was
mainly due to increased exposures and hedged positions across both
Investment Banking and Private Banking Wealth Management. The
increase was partially offset by decreases in model and parameter
updates related to a time series update of the data sets across Invest-
ment Banking and Private Banking Wealth Management.
Excluding the foreign exchange impact, the decrease in mar-
ket risk was primarily driven by decreases in risk levels and model
and parameter updates, partially offset by increases in external
methodology changes. The movements in risk levels were driven
by a decrease in trading book securitization exposures following
increased protection on low rated tranched portfolios, including
protection provided by the Capital Opportunity Facility, a compo-
nent of our employee deferred compensation plan. Decreases in
model and parameter updates were due to market data updates
for stressed spreads within Investment Banking. These decreases
were partially offset by increases in external methodology changes
resulting from the regulatory requirement to hold capital against
short trading book securitization positions starting on January 1,
2014.
The increase in operational risk was primarily driven by
external methodology changes and model and parameter updates,
partially offset by internal methodology changes. The increase in
external methodology changes resulted from the implementation
of a revised q AMA model, a q FINMA imposed cap applied to
benefits derived from insurance protection and an update to the
litigation add-on component following an increase in the aggregate
range of reasonably possible litigation losses not covered by exist-
ing provisions. The increase in model and parameter updates resulted
from revised scenarios reflecting settlements of the previously out-
standing Federal Housing Finance Agency and US cross-border

118
291
as of December 31, 2014 (CHF billion)
Market risk 34
Operational risk 58
Non-counterparty risk 6
Credit risk 193
Balance sheet
positions
Off-balance sheet
exposures
Off-balance sheet
derivatives
Guarantees, commitments
Trading assets
investments1
Loans, receivables
and other assets
Premises
and equipment
Securities financing
transactions2
Trading liabilities,
short positions
Securities financing
transactions2
Processes,
people,
systems,
external
events
34
62
6
125
58
6
1
Includes primarily trading assets, investment securities and other investments.
2
Includes central bank funds sold, securities purchased under resale agreements and central bank funds purchased, securities sold under repurchase agreements and securities lending transactions.
matters, partially offset by the annual model recalibration with updated
loss data. These increases were partially offset by internal methodol-
ogy changes resulting from an agreement with FINMA to remove the
limitation it had previously set on the capital benefit for insurance-
based risk transfer.
Regulatory capital and ratios – Bank
The Bank’s CET1 ratio was 14.4% as of the end of 2014 com-
pared to 14.3% as of the end of 2013, reflecting higher CET1
capital, mostly offset by higher RWA. The Bank’s tier 1 ratio was
16.6% as of the end of 2014 compared to 15.4% as of the end of
2013. The Bank’s total capital ratio was 20.5% as of the end of
2014 compared to 19.8% as of the end of 2013.
CET1 capital was CHF 40.9 billion as of the end of 2014
compared to CHF 37.7 billion as of the end of 2013, reflecting a
positive foreign exchange impact, the conversion of ineligible par-
ticipation securities into eligible share capital, net income and an
adjusted dividend accrual. CET1 capital was negatively impacted
by the 20% phase-in of regulatory deductions from CET1, includ-
ing goodwill, other intangible assets and certain deferred tax
assets.
Additional tier 1 capital increased to CHF 6.3 billion as of the
end of 2014 compared to CHF 3.1 billion as of the end of 2013,
mainly due to the issuance of the tier 1 capital notes and CCA, the
20% decrease in phase-in deductions, including goodwill, other
intangible assets and other capital deductions, and the positive
foreign exchange impact, partially offset by the redemption of the
tier 1 participation securities.
Tier 2 capital was CHF 11.0 billion as of the end of 2014 com-
pared to CHF 11.6 billion as of the end of 2013, mainly due to the
redemption of certain intercompany tier 2 capital notes, partially
offset by the positive foreign exchange impact.
The Bank’s total eligible capital increased to CHF 58.1 billion
as of the end of 2014 compared to CHF 52.3 billion as of the end
of 2013.
RWA increased CHF 18.8 billion to CHF 283.0 billion as of
the end of 2014 compared to CHF 264.2 billion as of the end of
2013.
The business of the Bank is substantially the same as the busi-
ness of the Group. The trends for the Bank are consistent with
those for the Group.
u Refer to “Market risk”, “Credit risk” and “Operational risk” in Risk management
for further information.

Capital management
BIS statistics – Basel III – Bank

Phase-in
end of
2014
2013
% change
42,895
39,467
9
Regulatory adjustments 1
(66)
(2,797)
(98)
Adjustments subject to phase-in
(1,976) 2
1,030 3
–
CET1 capital
40,853
37,700
8
Additional tier 1 instruments
10,410 4
6,643
57
Additional tier 1 instruments subject to phase-out 5
2,473
3,652
(32)
Deductions from additional tier 1 capital
(6,622) 6
(7,226)
(8)
Additional tier 1 capital
6,261
3,069
104
47,114
40,769
16
Tier 2 instruments
7,014 7
6,263
12
Tier 2 instruments subject to phase-out
4,196
5,633
(26)
Deductions from tier 2 capital
(213)
(319)
(33)
Tier 2 capital
10,997
11,577
(5)
58,111
52,346
11
Credit risk
184,531
166,245
11
Market risk
34,439
39,111
(12)
Operational risk
58,413
53,075
10
Non-counterparty risk
5,611
5,758
(3)
282,994
264,189
7
Capital ratios (%)
CET1 ratio
14.4
14.3
–
Tier 1 ratio
16.6
15.4
–
Total capital ratio
20.5
19.8
–
1
Includes regulatory adjustments not subject to phase-in, including a cumulative dividend accrual.
2
Reflects 20% phase-in deductions, including goodwill, other intangible assets and certain deferred tax assets, and 80% of an adjustment for the accounting treatment of pension plans
pursuant to phase-in requirements.
3
Includes an adjustment for the accounting treatment of pension plans pursuant to phase-in requirements and other regulatory adjustments.
4
consists of capital instruments with a capital ratio write-down trigger of 5.125%.
5
Includes hybrid capital instruments that are subject to phase-out.
6
Includes 80% of goodwill and other intangible assets (CHF 6.4 billion) and other capital deductions, including gains/(losses) due to changes in own credit risk on fair valued financial liabili-
ties, that will be deducted from CET1 once Basel III is fully implemented.
7
consists of capital instruments with a capital ratio write-down trigger of 5%.
BIS leverage ratio – Group
Beginning in the first quarter of 2015, Credit Suisse adopted the
q BIS leverage ratio framework, as issued by the q BCBS and
implemented in Switzerland by FINMA. Under the BIS framework,
the leverage ratio measures tier 1 capital against the end of period
exposure. BIS leverage amounts are calculated based on our inter-
pretation of, and assumptions and estimates related to, the BIS
requirements as implemented by FINMA that are effective for the
first quarter of 2015 and the application of those requirements on
our 2014 results. Changes in these requirements or any of our
interpretations, assumptions or estimates would result in different
numbers from those shown here.
As of December 31, 2014 the estimated look-through BIS
leverage ratio measured against tier 1 capital was 3.4% and the
estimated BIS leverage exposure was CHF 1,167 billion.
Credit Suisse is targeting a look-through BIS tier 1 lever-
age ratio of approximately 4.0% by the end of 2015, of which
the CET1 component is approximately 3.0%. Credit Suisse has
revised its BIS leverage exposure target to CHF 930–950 billion
by end 2015 from the previously reported Swiss leverage exposure
target of approximately CHF 1,050 billion, on a foreign exchange
adjusted basis. The BIS leverage exposure target assumes foreign
exchange rates of the US dollar and the euro against the Swiss
franc as of January 30, 2015.

120
SWISS Capital metrics
Swiss regulatory capital and ratios
u Refer to “Swiss Requirements” for further information on Swiss regulatory
requirements.
As of the end of 2014, our Swiss CET1 capital and Swiss total
capital ratios were 14.8% and 20.7%, respectively, compared
to the Swiss capital ratio phase-in requirements of 6.75% and
10.18%, respectively.
On a look-through basis, our Swiss CET1 capital was
CHF 28.4 billion and our Swiss CET1 ratio was 10.0% as of the
end of 2014. Our Swiss total eligible capital was CHF 46.7 billion
and our Swiss total capital ratio was 16.4% as of the end of 2014,
each on a look-through basis.
Swiss statistics – Basel III – Group

Phase-in
Look-through
end of
2014
2013
% change
2014
2013
% change
Capital development (CHF million)
CET1 capital
43,322
42,989
1
28,576
26,480
8
Swiss regulatory adjustments 1
(133)
1,658
–
(143)
1,824
–
Swiss CET1 capital 2
43,189
44,647
(3)
28,433
28,304
0
High-trigger capital instruments
8,893 3
7,743
15
8,893
7,743
15
Low-trigger capital instruments
9,406 4
6,005
57
9,406
6,005
57
Additional tier 1 and tier 2 instruments subject to phase-out 5
6,663
–
–
–
–
–
Deductions from additional tier 1 and tier 2 capital 5
(7,533)
–
–
–
–
–
Swiss total eligible capital 2
60,618
58,395
4
46,732
42,052
11

291,410
273,846
6
284,248
266,103
7
1,058
1,015
4
1,057
1,031
3
Swiss risk-weighted assets
292,468
274,861
6
285,305
267,134
7
Swiss capital ratios (%)

Swiss CET1 ratio
14.8
16.2
–
10.0
10.6
–
Swiss total capital ratio
20.7
21.2
–
16.4
15.7
–
1
Includes adjustments for certain unrealized gains outside the trading book and, in the fourth quarter of 2013, also included tier 1 participation securities, which were redeemed in the first
quarter of 2014.
2
Previously referred to as Swiss Core Capital and Swiss Total Capital, respectively.
3
Consists of CHF 6.2 billion additional tier 1 instruments and CHF 2.7 billion tier 2 instruments.
4
5
Reflects the FINMA Decree, which was effective in the first quarter of 2014.
6
Primarily includes differences in the credit risk multiplier.

Capital management
Swiss statistics – Basel III – Bank

Phase-in
end of
2014
2013
% change
Capital development (CHF million)
CET1 capital
40,853
37,700
8
(111)
1,711
–
Swiss CET1 capital 2
40,742
39,411
3
8,944 3
7,743
16
8,480 4
5,163
64
Additional tier 1 and tier 2 instruments subject to phase-out 5
6,669
–
–
Deductions from additional tier 1 and tier 2 capital 5
(6,835)
–
–
Swiss total eligible capital 2
58,000
52,317
11

–
282,994
264,189
7
1,048
1,021
3
284,042
265,210
7

Swiss CET1 ratio
14.3
14.9
–
20.4
19.7
–
1
Includes adjustments for certain unrealized gains outside the trading book and, in the fourth quarter of 2013, also included tier 1 participation securities, which were redeemed in the first
quarter of 2014.
2
Previously referred to as Swiss Core Capital and Swiss Total Capital, respectively.
3
4
5
Reflects the FINMA Decree, which was effective in the first quarter of 2014.
6
Primarily includes differences in the credit risk multiplier.

122
The following table presents the Swiss Requirements for each of
the relevant capital components and discloses our current capital
metrics against those requirements.
Swiss capital requirements and coverage

Group
Bank

Capital requirements


Minimum
Buffer
Progressive

Minimum
Buffer
Progressive

end of
component
component
component
Excess
2014
component
component
component
Excess
2014
Risk-weighted assets (CHF billion)
–
–
–
–
292.5
–
–
–
–
284.0
2014 Swiss capital requirements 1
Minimum Swiss total capital ratio
4.0%
4.5% 2
1.68%
–
10.18%
4.0%
4.5% 2
1.68%
–
10.18%
Minimum Swiss total

eligible capital (CHF billion)
11.7
13.2
4.9
–
29.8
11.4
12.8
4.8
–
28.9
Swiss capital coverage (CHF billion)
Swiss CET1 capital
11.7
8.0
–
23.4
43.2
11.4
7.8
–
21.6
40.7
–
5.1
–
3.8
8.9
–
5.0
–
4.0
8.9
–
–
4.9
4.5
9.4
–
–
4.8
3.7
8.5
Additional tier 1 and tier 2 instruments

subject to phase-out
–
–
–
6.7
6.7
–
–
–
6.7
6.7
Deductions from additional tier 1 and

tier 2 capital
–
–
–
(7.5)
(7.5)
–
–
–
(6.8)
(6.8)
Swiss total eligible capital
11.7
13.2
4.9
30.9
60.6
11.4
12.8
4.8
29.1
58.0
4.0%
4.5%
1.68%
10.5%
20.7%
4.0%
4.5%
1.68%
10.2%
20.4%
Rounding differences may occur.
1
The Swiss capital requirements are based on a percentage of RWA.
2
Excludes countercyclical buffer that was required as of September 30, 2013.
Swiss leverage ratio
The Swiss leverage ratio is calculated as Swiss total eligible capi-
tal, including high- and low-trigger capital instruments, divided by
a three-month average exposure, which consists of balance sheet
assets, off-balance sheet exposures, consisting of guarantees and
commitments, and regulatory adjustments, including cash collat-
eral netting reversals and qderivative add-ons. As of the end of
2014, our Swiss leverage ratio was 4.9% and our total average
exposure was CHF 1,227.5 billion. As of the end of 2014, our total
exposure was CHF 1,213 billion.
The Group’s look-through Swiss leverage ratio was 3.9% as of
the end of 2014, compared to the current 4% requirement effec-
tive 2019, reflecting our progressive component requirement for
2014. For 2015, the Swiss leverage ratio requirement effective
2019 will be 4.09%.
Credit Suisse is targeting a look-through Swiss leverage ratio
of approximately 4.5% by the end of 2015. Beginning in the first
quarter of 2015, the leverage exposure is measured on the same
period-end basis as the leverage exposure for the qBIS leverage
ratio.
Swiss leverage ratio – Group

Phase-in
Look-through
end of
2014
2013
% change
2014
2013
% change
Swiss total eligible capital (CHF million)
60,618
58,395
4
46,732
42,052
11
Exposure (CHF million) 1

Balance sheet assets
938,280
890,242
5
938,280
890,242
5
Off-balance sheet exposures
153,713
133,426
15
153,713
133,426
15
Regulatory adjustments
135,544
130,150
4
120,742
113,596
6
Total average exposure
1,227,537
1,153,818
6
1,212,735
1,137,264
7

4.9
5.1
–
3.9
3.7
–
1
Calculated as the average of the month-end amounts for the previous three calendar months.

Capital management
Swiss leverage ratio – Bank

Phase-in
end of
2014
2013
% change
Swiss total eligible capital (CHF million)
58,000
52,317
11
Exposure (CHF million) 1

Balance sheet assets
920,316
871,814
6
Off-balance sheet exposures
152,775
132,567
15
Regulatory adjustments
134,299
127,927
5
1,207,390
1,132,308
7

4.8
4.6
–
1
Calculated as the average of the month-end amounts for the previous three calendar months.
The following table presents the Swiss Requirements relating to
each of the relevant capital components and discloses our current
leverage metrics against those requirements.
Swiss leverage requirements and coverage

Group
Bank



Minimum
Buffer
Progressive

Minimum
Buffer
Progressive

end of
component
component
component
Excess
2014
component
component
component
Excess
2014
Exposure (CHF billion)
–
–
–
–
1,227.5
–
–
–
–
1,207.4
2014 Swiss leverage requirements 1
Minimum Swiss leverage ratio
0.96%
1.08%
0.40%
–
2.44%
0.96%
1.08%
0.40%
–
2.44%
Minimum Swiss leverage (CHF billion)
11.8
13.3
4.9
–
30.0
11.6
13.0
4.9
–
29.5
Swiss capital coverage (CHF billion)
Swiss CET1 capital
11.8
8.1
–
23.3
43.2
11.6
8.0
–
21.2
40.7
–
5.2
–
3.7
8.9
–
5.1
–
3.9
8.9
–
–
4.9
4.5
9.4
–
–
4.9
3.6
8.5
Additional tier 1 and tier 2 instruments

subject to phase-out
–
–
–
6.7
6.7
–
–
–
6.7
6.7
Deductions from additional tier 1 and

tier 2 capital
–
–
–
(7.5)
(7.5)
–
–
–
(6.8)
(6.8)
11.8
13.3
4.9
30.6
60.6
11.6
13.0
4.9
28.5
58.0
0.96%
1.08%
0.40%
2.50%
4.94%
0.96%
1.08%
0.40%
2.36%
4.80%
1
The leverage requirements are based on a percentage of total average exposure.

124
Shareholders’ equity and share metrics
Group
Our total shareholders’ equity was CHF 44.0 billion as of the end
of 2014 compared to CHF 42.2 billion as of the end of 2013. Total
shareholders’ equity was positively impacted by foreign exchange-
related movements on cumulative translation adjustments, net
income and an increase in the share-based compensation obliga-
tion. These increases were partially offset by transactions relating
to the settlement of share-based compensation awards, an actu-
arial pension adjustment and dividends paid.
u Refer to the “Consolidated statements of changes in equity” in V – Consoli-
dated financial statements – Credit Suisse Group for further information on the
Group’s total shareholders’ equity.
Bank
The Bank’s total shareholder’s equity was CHF 42.9 billion as
of the end of 2014 compared to CHF 39.5 billion as of the end
of 2013. Total shareholder’s equity was positively impacted by
foreign exchange-related movements on cumulative translation
adjustments, an increase in the share-based compensation obli-
gation and net income. These increases were partially offset by
transactions relating to the settlement of share-based compensa-
tion awards.
u Refer to the “Consolidated statements of changes in equity” in VII – Consoli-
dated financial statements – Credit Suisse (Bank) for further information on the
Bank’s total shareholder’s equity.
Shareholders’ equity and share metrics

Group
Bank
end of
2014
2013
% change
2014
2013
% change
Shareholders’ equity (CHF million)

Common shares
64
64
0
4,400
4,400
0
Additional paid-in capital
27,007
27,853
(3)
34,842
34,851
0
Retained earnings
32,083
30,261
6
15,877
14,621
9
Treasury shares, at cost
(192)
(139)
38
–
–
–
Accumulated other comprehensive income/(loss)
(15,003)
(15,875)
(5)
(12,224)
(14,405)
(15)
43,959
42,164
4
42,895
39,467
9
Goodwill
(8,644)
(7,999)
8
(7,766)
(7,121)
9
(249)
(210)
19
(249)
(210)
19
Tangible shareholders’ equity 1
35,066
33,955
3
34,880
32,136
9
Shares outstanding (million)

Common shares issued
1,607.2
1,596.1
1
4,399.7
4,399.7
0
Treasury shares
(7.7)
(5.2)
48
–
–
–
Shares outstanding
1,599.5
1,590.9
1
4,399.7
4,399.7
0
Par value (CHF)

Par value
0.04
0.04
0
1.00
1.00
0
Book value per share (CHF)

Total book value per share
27.48
26.50
4
9.75
8.97
9
Goodwill per share
(5.40)
(5.03)
7
(1.76)
(1.62)
9
Other intangible assets per share
(0.16)
(0.13)
23
(0.06)
(0.05)
20
Tangible book value per share 1
21.92
21.34
3
7.93
7.30
9
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.
Share repurchases
The Swiss Code of Obligations limits a corporation’s ability to hold
or repurchase its own shares. We may only repurchase shares if
we have sufficient free reserves to pay the purchase price, and if
the aggregate nominal value of the repurchased shares does not
exceed 10% of our nominal share capital. Furthermore, we must
create a special reserve in our parent company financial state-
ments in the amount of the purchase price of the acquired shares.
In our consolidated financial statements, own shares are recorded
at cost and reported as treasury shares, resulting in a reduction in
total shareholders’ equity. Shares repurchased by us do not carry
any voting rights at shareholders’ meetings.
We purchased 386.3 million treasury shares and sold or re-
issued 357.7 million treasury shares in 2014, predominantly for
market-making purposes and facilitating customer orders. As of
December 31, 2014, the Group held 7.7 million treasury shares.
u Refer to “Impact of share-based compensation on shareholders’ equity” in
IV – Corporate Governance and Compensation – Compensation for further
information.

Capital management
Purchases and sales of treasury shares

Average

price

Number
per share
In million, except where indicated
of shares
in CHF
2014

January
24.8
28.72
February
25.5
27.59
March
22.0
27.67
April
32.3
28.41
May
47.7
26.91
June
21.3
26.58
July
39.8
25.62
August
42.0
25.16
September
40.1
25.85
October
37.0
25.28
November
34.9
25.18
December
18.9
25.35
Total purchase of treasury shares
386.3
–

Total sale of treasury shares
357.7
–
Dividends and dividend policy
Under the Swiss Code of Obligations, dividends may be paid out
only if and to the extent the corporation has distributable profits
from previous business years, or if the free reserves of the cor-
poration are sufficient to allow distribution of a dividend. In addi-
tion, at least 5% of the annual net profits must be retained and
booked as general legal reserves for so long as these reserves
amount to less than 20% of the paid-in share capital. Our reserves
currently exceed this 20% threshold. Furthermore, dividends may
be paid out only after shareholder approval at the annual general
meeting (AGM). The Board of Directors may propose that a divi-
dend be paid out, but cannot itself set the dividend. In Switzerland,
the auditors have to confirm whether the appropriation of retained
earnings is in accordance with Swiss law and articles of incorpo-
ration. In practice, the shareholders usually approve the dividend
proposal of the Board of Directors. Dividends are usually due and
payable after the shareholders’ resolution relating to the allocation
of profits has been passed. Under the Swiss Code of Obligations,
the statute of limitations in respect of claiming the payment of divi-
dends that have been declared is five years.
Our dividend payment policy seeks to provide investors with
a stable and efficient form of capital distribution relative to earn-
ings. Dividend payments made in 2014, for 2013, were comprised
of a cash distribution of CHF 0.70 per share paid out of reserves
from capital contributions. Our Board of Directors will propose to
the shareholders at the AGM on April 24, 2015 a distribution of
CHF 0.70 per share out of reserves from capital contributions
for the financial year 2014. The distribution will be free of Swiss
withholding tax and will not be subject to income tax for Swiss
resident individuals holding the shares as a private investment. The
distribution will be payable in cash or, subject to any legal restric-
tions applicable in shareholders’ home jurisdictions, in new Group
shares at the option of the shareholder. The ex-dividend date has
been set to May 4, 2015.
Reflecting our holding company structure, the Group is not
an operating company and holds investments in subsidiaries. It is
therefore reliant on the dividends of its subsidiaries to pay share-
holder dividends and service its long-term debt. The subsidiaries of
the Group are generally subject to legal restrictions on the amount
of dividends they can pay. The amount of dividends paid by operat-
ing subsidiaries is determined after consideration of the expecta-
tions for future results and growth of the operating businesses.
u Refer to “Proposed distribution against reserves from capital contributions”
in VI – Parent company financial statements – Credit Suisse Group – Proposed
appropriation of retained earnings and capital distributions for further information
on dividends.
Dividend per ordinary share

USD 1
CHF
Dividend per ordinary share for the financial year

2013
0.79
0.70
2012 2
0.83
0.75
2011
0.78
0.75
2010
1.48
1.30
2009
1.78
2.00
1
Represents the distribution on each American Depositary Share. For further information,
refer to www.credit-suisse.com/dividend.
2
Distribution consisted of CHF 0.10 (USD 0.11) per share in cash and a stock dividend
with a theoretical value of approximately CHF 0.65 (USD 0.69) per subscription right as
approved at the AGM on April 26, 2013 for the financial year 2012.
Foreign exchange exposure and interest rate management
Foreign exchange risk associated with investments in branches,
subsidiaries and affiliates is managed within defined parameters
that create a balance between the interests of stability of capital
adequacy ratios and the preservation of Swiss franc shareholders’
equity. The decisions regarding these parameters are made by
CARMC and are regularly reviewed. Foreign exchange risk associ-
ated with the nonfunctional currency net assets of branches and
subsidiaries is managed through a combination of forward looking
and concurrent backward looking hedging activity, which is aimed
at reducing the foreign exchange rate induced volatility of reported
earnings.
Interest rate risk inherent in banking book activities, such as
lending and deposit taking, is managed through the use of rep-
lication portfolios. Treasury develops and maintains the models
needed to determine the interest rate risks of products that do not
have a defined maturity, such as demand and savings accounts.
For this purpose, a replicating methodology is applied in close
coordination with Risk Management to maximize the stability and
sustainability of spread revenues at the divisions. Further, Treasury
manages the interest exposure of the Bank’s equity to targets
agreed with senior management.

126
Risk management
The prudent taking of risk in line with our strategic priorities is fundamental to our business as a leading global bank
and continued to be a key focus area in 2014. During the year, we took additional steps to adapt our business and risk
management practices to reflect changes in our operating environment. In addition, we restructured our risk organization
to further strengthen the holistic risk coverage, effectiveness of risk governance and oversight.
Key Risk developments
2014 was a year marked by slowing global economic growth, ris-
ing geopolitical risks, diverging policies of major central banks and
a significant decrease in energy prices. The combination of low
interest rates, low market volatility through most of the year, rising
prospects of deflation, exacerbated by falling commodity prices,
and investors’ search for yield resulted in a further decrease in
yields and, mainly in the first half of 2014, tightening credit
spreads.
Cross-border matters
In May 2014, we entered into a comprehensive and final settle-
ment regarding all outstanding US cross-border matters. Over the
last several years, we have been enhancing our operational risk
framework and legal and compliance oversight programs to gener-
ally address cross-border risks.
Ukraine crisis
During 2014, the macroeconomic effects of increasing tension in
the Ukraine were mostly confined to the nearby regions, but the
risk of a more widespread disruption increased. Since June 2014,
the Russian ruble has significantly devalued against major cur-
rencies, yields on Russian bonds have increased significantly and
Russia’s financial markets reached high volatility. We closely moni-
tor and manage our exposures to Russian counterparties and have
lowered our exposures and reduced our country exposure limits.
Leveraged finance
In March 2013, the OCC, the Fed, and the FDIC jointly issued
supervisory guidance on leveraged lending (Guidance). The goals
of the Guidance include helping financial institutions properly
evaluate and monitor underwritten credit risks in leveraged loans,
understand the effect of changes in borrowers’ enterprise values
on credit portfolio quality, assess the sensitivity of future credit
losses to changes in enterprise values, and to strengthen their
risk management frameworks so that leveraged lending activities
do not heighten risk in the banking system or the broader financial
system. In November 2014, the same agencies indicated that the
standards for underwriting and arranging loan transactions that
can be classified as leveraged lending may receive increased scru-
tiny. This heightened standard of scrutiny is negatively impacting
Credit Suisse’s ability to underwrite and originate leveraged lend-
ing transactions.
Energy prices
The reduction in energy prices gathered momentum in the fourth
quarter 2014 and led to a sharp decline in the high yield credit
market of the energy sector. This decline impacted the overall high
yield market and led to an increase in volatility across credit mar-
kets. Due to the oil price decline, oil-producing emerging market
countries saw significant declines in hard currency revenues, which
resulted in increased volatility across some of the major emerging
market indices. In 2014, we were not materially impacted by this
increase in volatility. We closely monitor and manage our lending
exposure to the highest impacted areas, such as the North Ameri-
can exploration and production and the oilfield services sectors.
Any potential losses due to defaults would be mitigated because
a majority of the loans are highly collateralized. Historically, such
loans have experienced high recovery rates.
Cyber-attacks
Cyber threats are continuously evolving, becoming more sophisti-
cated, targeted and sustained. The speed and scale offered by the
internet have been increasingly harnessed in cyber-attacks to tar-
get multiple systems or processes in parallel, causing widespread
harm. Defending and countering cyber-attacks while address-
ing evolving regulations and policies is a complex challenge. The
economic effects of cyber-attacks can extend beyond the loss of
financial assets or intellectual property. There are costs associated
with loss of client confidence and reputational risk, the opportunity
costs of service disruptions, the cost of repairs and remediation
after cyber incidents and the increasing cost of cyber security.
We are focused on continually strengthening our cyber security
defense capabilities along with promoting a strong risk culture and
good governance.
SNB decision to discontinue the minimum exchange rate
On January 15, 2015, the SNB decided to discontinue the mini-
mum exchange rate of CHF 1.20 per euro and to lower the interest
rate by 50 basis points to (0.75)% on sight deposits that exceed a
certain threshold. It also decreased the target range for the three-
month Swiss franc LIBOR. The immediate market impact was sig-
nificant, with the Swiss franc significantly strengthening against
the euro and other major currencies, the Swiss equity markets fall-
ing and interest rates further decreasing. We managed the market
volatility and client flow at the time of the SNB decision without
incurring material trading losses and without an immediate impact
to our capital ratios.

Risk management
Key management bodies and committees covering risk management matters
Group / Bank
Divisions Regions / Legal entities
p Risk boards and management committees for certain significant legal
entities with independent governance and oversight
p Responsible for assuring local regulatory compliance as well
as defining local risk appetite
Board of Directors
Audit Committee Risk Committee
Risk Management Committee
Investment Banking
Risk Management Committee
Chief Executive Officer
Executive Board
Capital Allocation Risk
Management Committee
(CARMC)
Valuation Risk
Management Committee
(VARMC)
Risk Processes
Standards Committee
(RPSC)
Reputational Risk
Sustainability Committee
(RRSC)
Risk management oversight
Fundamental to our business is the prudent taking of risk in line
with our strategic priorities. The primary objectives of risk man-
agement are to protect our financial strength and reputation, while
ensuring that capital is well deployed to support business activities
and grow shareholder value. Our risk management framework is
based on transparency, management accountability and indepen-
dent oversight. Risk management is an integral part of our busi-
ness planning process with strong involvement of senior manage-
ment and the Board of Directors (Board).
To meet the challenges of a volatile market environment and
changing regulatory frameworks, we are working to continuously
strengthen risk management throughout the Group. We have com-
prehensive risk management processes and sophisticated control
systems. We are working to limit the impact of negative develop-
ments that may arise by carefully managing risk concentrations.
Risk governance
Effective risk management begins with effective risk governance.
Our risk governance framework is based on a “three lines of
defense” governance model, where each line has a specific role
and defined responsibilities and works in close collaboration to
identify, assess and mitigate risks.
The first line of defense is the front office, which is responsible
for pursuing suitable business opportunities within the strategic
risk objectives and compliance requirements of the Group, includ-
ing primary responsibility for compliance with relevant legal and
regulatory requirements and internal controls.
The second line of defense includes functions such as risk
management, legal and compliance and product control. It articu-
lates standards and expectations for the management of risk and
effectiveness of controls, including advising on applicable legal
and regulatory requirements and publishing related policies, and
monitors compliance with the same. The second line of defense
is separate from the front office and acts as an independent con-
trol function, responsible for reviewing and challenging front office
activities and producing independent management information and
risk management reporting for senior management and regulatory
authorities.
The third line of defense is the internal audit function, which
monitors the effectiveness of controls across various functions and
operations, including risk management and governance practices.
Our operations are regulated by authorities in each of the juris-
dictions in which we conduct business. Central banks and other
bank regulators, financial services agencies, securities agencies
and exchanges and self-regulatory organizations are among the
regulatory authorities that oversee our businesses. The Swiss
Financial Market Supervisory Authority FINMA (FINMA) is our pri-
mary regulator providing global supervision.
u Refer to “Regulation and supervision” in I – Information on the company for

128
Our governance includes a committee structure and a compre-
hensive set of corporate policies which are developed, reviewed
and approved by the Board, the Executive Board, their respective
committees and the Group Chief Risk Officer (CRO) in accordance
with their respective authority.
u Refer to “Board of Directors” and “Board Committees” in IV – Corporate Gov-
ernance and Compensation – Corporate Governance for further information.
Board of Directors
The Board is responsible for our strategic direction, supervision
and control, and for defining our overall tolerance for risk in the
form of a risk appetite statement and overall risk limits. Overall risk
limits are set by the Board in consultation with its Risk Committee.
The Risk Committee is responsible for assisting the Board in
fulfilling its oversight responsibilities by providing guidance regard-
ing risk governance and the development of our risk profile and
capital adequacy, including the regular review of major risk expo-
sures and overall risk limits.
The Audit Committee is responsible for assisting the Board in
fulfilling its oversight responsibilities by monitoring management’s
approach with respect to financial reporting, internal controls,
accounting and legal and regulatory compliance. Additionally, the
Audit Committee is responsible for monitoring the independence
and performance of internal and external auditors.
Executive Board
The Executive Board is responsible for developing and implement-
ing our strategic business plans, subject to approval by the Board.
It further reviews and coordinates significant initiatives for the risk
management function and establishes Group-wide risk policies.
The Group CRO is a member of the Executive Board and repre-
sents the risk management function.
Executive Board committees
The Capital Allocation Risk Management Committee (CARMC)
is responsible for supervising and directing our risk profile, rec-
ommending risk limits at the Group level to the Risk Committee
and the Board, establishing and allocating risk limits among the
various businesses, and for developing measures, methodologies
and tools to monitor and manage the risk portfolio. CARMC oper-
ates in three cycles with monthly meetings on a rotating basis.
The asset liability management cycle reviews the funding and
balance sheet trends and activities, plans and monitors regula-
tory and business liquidity requirements and internal and regu-
latory capital adequacy. The market credit risks cycle reviews
risk exposures and concentrations, defines and implements risk
management strategies for the Group businesses and sets and
approves risk limits within approved Board limits and other appro-
priate measures to monitor and manage the risk portfolio within
the various Group businesses. In the market credit risk cycle, the
credit portfolio provisions review committee, a sub-committee of
CARMC, reviews the quality of the credit portfolio with a focus on
the development of impaired assets and the assessment of related
provisions and valuation allowances. The internal control systems
cycle monitors and analyzes significant legal and compliance risks,
reviews and approves the business continuity program’s alignment
with the corporate strategy on an annual basis, sets limits, caps
and triggers on specific businesses to control significant opera-
tional risk exposure, and reviews and assesses the appropriate-
ness and efficiency of the internal control systems, particularly with
regards to valuation risks and the new business approval process.
The Valuation Risk Management Committee (VARMC) is
responsible for establishing policies regarding the valuation of cer-
tain material assets and the policies and calculation methodologies
applied in the valuation process.
The Risk Processes Standards Committee (RPSC) reviews
major risk management processes, issues general instructions,
standards and processes concerning risk management, approves
material changes in market, credit and operational risk manage-
ment standards, policies and related methodologies, and approves
the standards of our internal models used for calculating regulatory
capital requirements.
The Reputational Risk Sustainability Committee (RRSC) sets
policies and reviews processes and significant cases relating to
reputational risks and sustainability issues. It also ensures compli-
ance with our reputational and sustainability policies and oversees
their implementation.
Divisional and legal entity risk management committees
Divisional and legal entity risk management committees review
risk, legal and compliance and internal control matters specific to
the divisions and individual legal entities, respectively.
Risk organization
The risk management function is responsible for providing risk
management oversight and establishing an organizational basis to
manage risk matters.
Our risk organization has been restructured in light of the
increasing complexity of the regulatory environment and the strong
emphasis on legal entity considerations. A core mandate of the
risk management function is to contribute to an effective and inde-
pendent second line of defense.

Risk management
Risk organization
Central functionsDivisional chief risk officers
Group
Chief Risk Officer
Chief Risk Officer
Investment Banking
Chief Risk Officer
Enterprise Risk
Management
CRO
Change Management
Switzerland
Legal Entity
Chief Risk Officer
Market Risk Management
Credit Risk Management
Operational Risk Management
Fiduciary Risk Management
EMEA
Legal Entity
Chief Risk Officer
Americas
Legal Entity
Chief Risk Officer
APAC
Legal Entity
Chief Risk Officer
Risk Finance Data
Analytics and Reporting
CRO
Chief Operating Officer
Global functions
Regional legal entity chief risk officers
The restructured risk management organization was developed in
the second half of 2014, it became effective in January 2015 and
its implementation continues during 2015. The key elements of the
risk organization include:
Matrix structure
Our matrix structure reflects the Group’s business strategy and
emphasizes the Group’s legal entity considerations.
The global functions comprise market, credit, operational and
fiduciary risk management, and they are accountable for functional
risk oversight and the limit framework both at global and local legal
entity level. They are also responsible for functional models, meth-
odologies and policies and function-related regulatory change.
The regional legal entity chief risk officers comprise our four
regions and provide risk oversight for legal entities. They define
the local risk management and risk appetite frameworks and are
responsible for meeting the legal-entity-specific regulatory require-
ments. The global functions and the regional legal entity chief risk
officers jointly manage the functional teams in each location.
Enterprise Risk Management
The Enterprise Risk Management central function, with its head
directly reporting to the Group CRO, strengthens holistic risk
coverage. By consolidating our cross-functional and cross-busi-
ness risk initiatives in Enterprise Risk Management, we enhance
effectiveness and harmonize our overarching risk framework and
concepts. The Enterprise Risk Management mandate is focused
on the overarching risk framework including risk appetite and
stress testing, Group risk reporting, model risk management, risk-
related regulatory management and coordination of our reputa-
tional risk-related activities.
Divisional chief risk officers
The two divisional chief risk officer roles for Investment Banking
and Private Banking Wealth Management ensure alignment of
the risk management function within our businesses.
Other central functions
Risk Finance Data Analytics and Reporting provides consistent
reporting production, analytics and data management shared with
finance functions. CRO Change Management is responsible for
the portfolio of strategic change programs across the risk man-
agement function. The CRO’s chief operating officer facilitates
business management within the risk management function.

130
Risk appetite framework – key definitions
Risk capacity Maximum level of risk we can assume before breaching any constraints
determined by capital needs, liquidity requirements, shareholder expectations, or conduct
and fiduciary responsibilities to clients and other stakeholders.
Risk appetite Aggregate risk we are willing to accept within our risk capacity to achieve
our strategic objectives and business plan.
Risk profile Point-in-time assessment of our net risk exposures aggregated within and
across each relevant risk category.
Risk controls Quantitative and qualitative measures based on forward-looking assump-
tions that allocate our aggregate risk appetite to businesses, legal entities, risk categories,
concentrations and, as appropriate, other levels.
Risk controls
(limits, guidelines,
tolerances and targets)
Risk capacity
Risk appetite
Risk profile
Risk culture
We base our business operations on conscious and disciplined
risk-taking. We believe that independent risk management, com-
pliance and audit processes with proper management accountabil-
ity are critical to the interests and concerns of our stakeholders.
Our risk culture is supported by the following principles:
p Our risk management policies set out authorities and responsi-
bilities for taking and managing risks;
p We establish a clear risk appetite that sets out the types and
levels of risk we are prepared to take;
p We actively monitor risks and take mitigating actions where
they fall outside accepted levels;
p Breaches of risk limits are identified, analyzed and escalated,
and large, repeated or unauthorized exceptions may result in
disciplinary action; and
p We seek to establish resilient risk controls that promote mul-
tiple perspectives on risk and reduce the reliance on single risk
measures.
We actively promote a strong risk culture where employees are
encouraged to take accountability for identifying and escalating
risks and for challenging inappropriate actions. The businesses
are held accountable for managing all of the risks they generate,
including those relating to employee behavior and conduct, in line
with our risk appetite. Expectations on risk culture are regularly
communicated by senior management, reinforced through policies
and training, and considered in the performance assessment and
compensation processes and, with respect to employee conduct,
assessed by formal disciplinary review committees. In 2014, we
introduced across the Group a set of business conduct behaviors
that support our desired risk culture. They are designed to encour-
age employees to act in ways that reduce operational risk inci-
dents, address the root causes of past operational risk incidents
in the financial services sector and other relevant industries, and
touch on our ability to learn from past events.
u Refer to “Conduct risk” for further information.
Risk appetite Framework
Overview
We maintain a comprehensive Group-wide risk appetite frame-
work, providing a robust foundation for risk appetite setting and
management across the Group. A key element of the framework
is a detailed statement of the Board-approved risk appetite which
is aligned to our financial and capital plans. The framework also
encompasses the processes and systems for assessing the appro-
priate level of risk appetite required to constrain our overall risk
profile.
Risk capacity is the maximum level of risk that we can assume
before breaching any constraints determined by capital needs,
liquidity requirements, shareholder expectations, or conduct and
fiduciary responsibilities to clients and other stakeholders. Risk
appetite expresses the aggregate risk we are willing to accept
within our risk capacity to achieve our strategic objectives and
business plan. Risk profile is a point-in-time assessment of our net
risk exposures aggregated within and across each relevant risk
category. The size of our risk profile is restricted to the planned
level of our risk appetite through the use of risk controls, such as
limits, guidelines, tolerances and targets.

Risk management
Risk appetite framework – key aspects
Selected
quantitative
aspects
Selected
qualitative
aspects
p Economic risk capital limits
p Liquidity ratios
p Leverage ratios
p Scenario loss limits
p Risk-weighted assets
p Balance sheet size
p Compliance with international and local laws and
regulations
p Reputational risk
p Operational risk tolerance statements
Division-specific
Private Banking
Wealth Management
Investment Banking
Group-wide
p Economic risk capital limits
p Market risk limits
p Credit risk limits
p Operational risk tolerance levels
p Avoidance of concentration risks
p Adherence to suitability appropriateness requirements
p Compliance with industry guidelines and
internal policies
Risk appetite framework
The Group risk appetite framework encompasses the suite of poli-
cies, processes, controls and systems with which the risk controls
are calibrated and the risk profile is managed. The framework is
guided by the following strategic risk objectives:
p maintaining Group-wide capital adequacy on both a regulatory
basis and under stressed conditions;
p promoting stability of earnings;
p ensuring sound management of liquidity and funding risk;
p minimizing reputational risk; and
p managing and controlling business conduct risk.
Group-wide risk appetite is determined in conjunction with the
financial and capital planning process on an annual basis, based
on bottom-up forecasts that reflect planned risk-usage by the
businesses, and top-down, Board-driven strategic risk objectives
and risk appetite. Scenario stress testing of financial and capital
plans is an essential element in the risk appetite calibration pro-
cess and is the means through which our strategic risk objectives,
financial resources and business plans are aligned.
The risk appetite statement is the formal plan, approved by
the Board, for our Group-wide risk appetite. Key divisional alloca-
tions are cascaded from the Group and approved in divisional risk
management committees. Legal entity risk appetites are allocated
from the Group and are approved by the local legal entity board of
directors.
The top-down and bottom-up risk appetite calibration process
includes the following key steps:
Top-down:
p Group-level strategic risk objectives are agreed by the Board in
line with our financial and capital objectives.
p Top-down risk capacities and risk appetites are determined
with reference to available resources and key thresholds, such
as minimum regulatory requirements.
p A risk appetite statement is determined and approved annually
by the Board, and is based on both the strategic risk objectives
and comprehensive scenario stress testing of our forecasted
financial results and capital requirements. A semi-annual
review of the risk appetite and capacity levels is performed.
The risk appetite statement comprises quantitative and quali-
tative risk measures necessary for adequate control of the risk
appetite across the organization.
p Separate legal entity risk appetite frameworks aligned to local
regulatory requirements are in place for material subsidiaries.
An integrated year-end planning process ensures that individ-
ual legal entity risk appetites are consistent with Group levels.
p Divisional risk committees are responsible for allocating risk
appetite within their area based on individual business line
reviews and requirements.
Bottom-up:
p Risk forecasts are established by front office business experts
in conjunction with financial plans in order to ensure they
are consistent with the business strategy. These plans are
reviewed by the relevant risk management committees.
p Bottom-up risk forecasts are aggregated across businesses
to assess divisional and Group-wide risk plans and to support
management decisions on variations to existing risk appetite
levels or the possible need for new risk appetite measures.
The following chart provides an overview of key Group-wide quan-
titative and qualitative aspects covered in our risk appetite state-
ment for the Group and their connection to the division-specific
risk appetite statements.

132
Risk controls
A core aspect of our risk appetite framework is a sound system of
integrated risk controls to maintain our risk profile within our overall
risk appetite. Controls are classified according to type and author-
ity, with the principal control types comprising limits, guidelines
and tolerances. The risk controls restrict our maximum balance
sheet and off-balance sheet exposure given the market environ-
ment, business strategy and financial resources available to absorb
losses.
Limits are binding thresholds that require discussion to avoid
a breach and trigger immediate remediating action if a breach
occurs. Guidelines are thresholds which, if breached, require an
action plan to reduce risk below the guideline or to propose, jus-
tify and agree to adjust the guideline. Tolerances are designed
as management thresholds to initiate discussion, and breach of
a tolerance level triggers review by the relevant control authority.
Authority is determined by the approving body and controls are
currently in effect from all key risk governance bodies and com-
mittees including the Board, its Risk Committee and the Executive
Board through CARMC.
We have established a control structure which manages the
Group’s risk profile using multiple metrics, including economic risk
capital, value-at-risk (VaR), scenario analysis and various exposure
limits at Group level. The overall risk limits for the Group are set by
the Board in consultation with its Risk Committee and are binding.
In the rare circumstances where a breach of these limits would
occur, it would result in an immediate notification to the Chairman
of the Board’s Risk Committee and the Group CEO, and written
notification to the full Board at its next meeting. Following notifica-
tion, the Group CRO may approve positions that exceed the Board
limits up to a predefined level and any such approval is reported
to the full Board. Positions that exceed the Board limits by more
than the predefined level may only be approved by the Group CRO
and the full Board acting jointly. In 2014 and 2013, no Board limits
were exceeded.
Dedicated controls are also in place to cover the specific risk
profiles of individual businesses and legal entities. In the context
of the overall risk appetite of the Group, as defined by the limits
set by the Board and its Risk Committee, CARMC is responsible
for allocating divisional risk limits and more specific limits deemed
necessary to control the concentration of risk within individual lines
of business. Divisional management is responsible for allocat-
ing risk appetite further into the organization. For this purpose, it
uses a detailed framework of more than 100 individual risk limits
designed to control risk-taking at a granular level by individual busi-
nesses and in the aggregate. The risk controls are intended to:
p limit overall risk-taking to the Group’s risk appetite;
p trigger senior management discussions with the businesses
involved, risk management and governance committees in
case of substantial change in the overall risk profile;
p ensure consistent risk measurement across businesses;
p provide a common framework for the allocation of resources to
businesses; and
p provide a basis for protecting the Group’s capital base and
meet strategic risk objectives.
The limit framework encompasses specific limits on a large num-
ber of different products and risk type concentrations. For exam-
ple, there are controls over consolidated trading exposures, the
mismatch of interest-earning assets and interest-bearing liabilities,
private equity and seed capital. Risk limits allocated to lower orga-
nizational levels within the businesses also include a system of
individual counterparty credit limits. CARMC limits are binding and
generally set close to the planned risk profile to ensure that any
meaningful increase in risk exposures is promptly escalated. The
divisional chief risk officers and certain other members of senior
management have the authority to temporarily increase the divi-
sional risk committee limits by an approved percentage for a period
not to exceed 90 days. Any divisional risk committee limit excess is
subject to a formal escalation procedure and must be remediated
or expressly approved by senior management. Senior management
approval is valid for a standard period of ten days (or fewer than
ten days for certain limit types) and approval has to be renewed for
additional standard periods if an excess is not remediated within
the initial standard period. The majority of these limits are moni-
tored on a daily basis. Limits for which the inherent calculation
time is longer are monitored on a weekly basis. A smaller subset of
limits relating to exposures for which the risk profile changes more
infrequently (for example, those relating to illiquid investments) is
monitored on a monthly basis. In 2014, 98% of all limit excesses
were resolved within the approved standard period.
While the primary purpose is risk management, risk limits are
also useful tools in the identification of trading misconduct and
unauthorized trading activities. The limit owners are responsible
for reviewing warning triggers for risk limits. They may set warn-
ing triggers for potential limit excesses at any level lower than the
approved limits as deemed appropriate after taking into account
the nature of the underlying business. Strict escalation proce-
dures apply to any limit breaches and depending on the severity
of the excess, the Group CRO’s or divisional chief executive offi-
cer’s approval may be required. Serious excesses are highlighted
in periodic Risk Committee meeting management summaries. An
assessment by the disciplinary review committee and any disciplin-
ary actions that may be taken are considered in the regular perfor-
mance assessment and compensation processes.

Risk management
Key risk types overview
Fiduciary risk: The risk of financial loss arising when the Group or its employees, acting in a fiduciary
capacity as trustee, investment manager or as mandated by law, do not act in the best interest of the client
in connection with the advice and management of our client’s assets including from a product-related
market, credit, liquidity and operational risk perspective.
Strategy risk: The risk of financial loss or reputational damage arising from inappropriate strategic
decisions, ineffective implementation of business strategies or an inability to adapt business strategies in
response to changes in the business environment.
Key risk types and definition
Liquidity and funding risks: The risk that we do not have the appropriate amount of funding and liquidity
to meet our obligations.
Market risk: The risk of financial loss from adverse changes in market prices, including interest rates,
credit spreads, foreign exchange, equity and commodity prices, and other factors such as market volatility
and the correlation of market prices.
Credit risk: The risk of financial loss arising as a 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.
Operational risk: The risk of financial loss arising from inadequate or failed internal processes, people or
systems, or from external events.
Reputational risk: The risk that negative perception by our stakeholders may adversely impact client
acquisition and damage our business relationships with clients and counterparties, affecting staff morale
and reducing access to funding sources.
Technology risk: The risk of financial loss from failure, exploitation of vulnerabilities or other deficien-
cies in the platforms that support our daily operations and the system applications and infrastructure on
which they reside.
Conduct risk: The risk that poor conduct by the Group, employees or representatives could result in
clients not receiving a fair transaction, damage to the integrity of the financial markets or the wider finan-
cial system, or ineffective competition in the markets in which we operate that disadvantages clients.
Legal, compliance and regulatory risks: Legal and compliance risks are the risk of loss arising from
the failure to comply with legal obligations, applicable regulations and other related circumstances.
Regulatory risk is the risk that changes in laws may affect our activities.
Key risk evaluation methods
Liquidity coverage ratio, net stable funding ratio, liquidity
barometer, stress testing
Value-at-risk, sensitivities, economic risk capital, stress
testing
Gross and net loan exposures, commitments, probability
of default, loss given default, exposure at default, poten-
tial future exposure, country exposures, economic risk
capital, stress testing
Risk and control self-assessments, risk and control indi-
cators, internal and external incident data, economic risk
capital, stress testing
p A comprehensive assessment for these risk types is
performed both periodically and event-driven.
p The results of the analysis impact management actions
such as strategy adjustments, tactical measures,
policy adjustments, event-driven crisis guidelines, staff
training and individual performance measurement.
p The risk management actions include both precau-
tionary activities to manage risk and issue resolution
activities to recover from adverse developments.
Risk Coverage and Management
Overview
We use a wide range of risk management practices to address
the variety of risks that arise from our business activities. Poli-
cies, limits, guidelines, processes, standards, risk assessment and
measurement methodologies, and risk monitoring and reporting
are key components of our risk management practices. Our risk
management practices complement each other in our analysis of
potential loss, support the identification of interdependencies and
interactions of risks across the organization and provide a compre-
hensive view of our exposures. We regularly review and update our
risk management practices to ensure consistency with our busi-
ness activities and relevance to our business and financial strate-
gies. Risk management practices have evolved over time without a
standardized approach within the industry, therefore comparisons
across firms may not be meaningful.
The key risk types, their definitions and key risk evaluation
methods are summarized in the following table.
It is important to both evaluate each risk type separately and
assess their combined impact on the Group, which helps ensure
that our overall risk profile remains within the Group-wide risk
appetite.
The primary evaluation methods used to assess Group-wide
quantifiable risks include economic risk capital and stress testing.
Economic risk capital captures market, credit, operational and cer-
tain other risks and is a key component in our risk appetite frame-
work with limits determined to control aggregate risk. Stress test-
ing captures market, credit and operational risks and provides an
evaluation method capable of capturing both historic and forward-
looking scenarios to ensure that aggregate risks are managed within
the Group-wide risk appetite also under stressed conditions.
The description of our economic risk capital methodology and
our stress testing framework below is followed by a more detailed
description of our key risk types.
u Refer to “Liquidity and funding management” for further information on liquid-
ity and funding risks-related evaluation methods used in our liquidity risk manage-
ment framework and for funding management.

134
Economic risk capital
Overview
Economic risk capital is used as a consistent and comprehensive
tool for capital management, limit monitoring and performance
management. Economic risk capital is our core Group-wide risk
management tool for measuring and reporting the combined
impact from quantifiable risks such as market, credit, operational,
pension, expense and model risks, each of which has an impact on
our capital position.
Under the Basel framework, we are required to maintain a
robust and comprehensive framework for assessing capital ade-
quacy, defining internal capital targets and ensuring that these capi-
tal targets are consistent with our overall risk profile and the current
operating environment. Our economic risk capital model represents
our internal view of the amount of capital required to support our
business activities.
u Refer to “Capital strategy and framework” and “Regulatory capital frame-
work” in Capital management for further information on our capital management
framework.
Methodology and scope
Economic risk capital measures risks in terms of economic reali-
ties rather than regulatory or accounting rules and estimates the
amount of capital needed to remain solvent and in business under
extreme market, business and operating conditions over the period
of one year, given our target financial strength (our long-term
credit rating). Economic risk capital is set to a level needed to
absorb unexpected losses at a confidence level of 99.97%. Our
economic risk capital model is a set of methodologies used for
measuring quantifiable risks associated with our business activi-
ties on a consistent basis. It is calculated separately for position
risk (reflecting our exposure to market and credit risks), operational
risk and other risks. Within each of these risk categories, risks are
further divided into subcategories, for which economic risk capital
is calculated using the appropriate specific methodology. Some of
these methodologies are common to a number of risk subcatego-
ries, while others are tailored to the particular features of single,
specific risk types included in position risk, operational risk and
other risks. Economic risk capital is calculated as the sum of posi-
tion risk, operational risk and other risks.
Position risk and diversification benefit
Position risk is the level of unexpected loss from our portfolio of
balance sheet and off-balance sheet positions over a one-year
holding period and includes market and credit risks. Position
risk is calculated at a 99% confidence level for risk manage-
ment purposes and converted to a 99.97% confidence level for
capital management purposes. Our position risks categories are
described in the following table.
Position risk categories
Position risk categories
Risks captured
Fixed income trading
 Foreign exchange rates and volatilities

 Interest rate levels and volatilities

 Commodity prices and volatilities

 Credit spreads and the risk of corporate bond defaults

 Life finance and litigation business activities
Equity trading investments
 Equity prices and volatilities

 Non-recourse share-backed financing transactions

 Liquid hedge funds exposures and fund-linked products

 Equity risk arbitrage activities, in particular the risk that an announced merger may not
be completed

 Private equity, illiquid hedge funds and other illiquid equity investment exposures
Private banking corporate retail lending
 Potential changes in the creditworthiness of counterparty exposures in the Private
Banking Wealth Management division and the risk of counterparty defaults
International lending counterparty exposures
 Potential changes in the creditworthiness of counterparty exposures, mainly in the
Investment Banking division, and the risk of counterparty defaults
Emerging markets country event risk
 Country events in emerging markets
Real estate structured assets
 Commercial real estate activities and structured assets
 Residential real estate activities and positions in asset-backed securities
To determine our overall position risk, we consider the diversifica-
tion benefit across risk types. Diversification benefit represents the
reduction in risk that occurs when combining different, not per-
fectly correlated risk types in the same portfolio and is measured
as the difference between the sum of position risk for the indi-
vidual risk types and the position risk calculated for the combined
portfolio. Hence, position risk for the combined portfolio is non-
additive across risk types and is lower than the sum of position risk
of its individual risk types due to risk reduction (or benefit) caused
by portfolio diversification. When analyzing position risk for risk
management purposes, we look at individual risk types before and
after diversification benefit.
Operational risk
Operational risk is the level of loss resulting from inadequate or
failed internal processes, people and systems or from external

Risk management
events calculated at a 99.97% confidence level and a one-year
holding period. A scenario-based approach is used to derive expo-
sures, with event risk modeling utilized to calculate the operational
risk. The primary focus is on major events, such as unauthorized
trading, business interruption or fraud. Estimating operational risk
is inherently more subjective and reflects quantitative tools and
senior management judgment.
Other risks
The other risks category includes the following:
p Our expense risk measures the potential difference between
expenses and revenues in a severe market event, excluding
the elements captured by position risk and operational risk,
using conservative assumptions regarding the earnings capac-
ity and the ability to reduce the cost base in a crisis situation.
p Pension risk is the risk that we, as a plan sponsor, are required
to fund a deficit in employee pension schemes in an extreme
event. It covers fluctuations in our pension plan assets and
liabilities which can lead to potential funding shortfalls. Funding
shortfalls can arise from a decline in asset values and/or an
increase in the present value of liabilities. The shortfall would
need to be funded using available resources. In order to recog-
nize the potential for a funding shortfall, we apply an economic
risk capital charge.
p Owned real estate risk is defined as the capital at risk which
arises from fluctuations in the value of buildings owned by the
Group.
p Foreign exchange risk is the risk arising from a currency mis-
match between available economic capital and economic risk
capital required.
p Corporate interest rate risk is the interest rate risk on our trea-
sury positions.
p The impact from deferred share-based compensation awards
captures the economic benefit that may result from covering
our structural short obligations to deliver own shares through
market purchases in the case of falling market prices.
p Model uncertainty add-on is an estimate for the impacts of
certain planned methodology changes.
Available economic capital
Available economic capital is an internal view of capital available
to absorb losses based on the reported BIS look-through CET1
capital under Basel III, with economic adjustments applied to pro-
vide consistency with economic risk capital. It enables a compar-
ison between capital needs (economic risk capital) and capital
resources (available economic capital).
Economic risk capital coverage ratio
Economic risk capital coverage ratio is defined as the ratio between
capital available to absorb losses (available economic capital) and
capital needs (economic risk capital). The economic risk capital
coverage ratio is primarily meant to provide a reference point for an
assessment of our solvency and reflects our best internal assess-
ment of risk and loss absorbing capacity.
Governance
Our economic risk capital framework is governed and maintained by
a dedicated steering committee, which regularly reviews, assesses
and updates the economic risk capital methodology in light of market
and regulatory developments, risk management practice and organi-
zational changes. In addition, the steering committee approves new
methodologies and prioritizes the implementation for its three com-
ponents (position risk, operational risk and other risks).
Stress testing framework
Overview
Stress testing or scenario analysis provides an additional approach
to risk management and formulates hypothetical questions, includ-
ing what would happen to our portfolio if, for example, historic or
adverse forward-looking events were to occur. A well-developed
stress testing framework provides a powerful tool for senior man-
agement to identify these risks and also take corrective actions to
protect the earnings and capital from undesired impacts.
Stress testing is a fundamental element of our Group-wide
risk appetite framework included in overall risk management to
ensure that our financial position and risk profile provide sufficient
resilience to withstand the impact of severe economic conditions.
Stress testing results are monitored against limits, used in risk
appetite discussions and strategic business planning, and to sup-
port our internal capital adequacy assessment. Within the risk
appetite framework, CARMC sets Group-wide stressed position
loss limits to correspond to minimum post-stress capital ratios.
Currently, limits are set on the basis of BIS CET1 capital ratios
on a phase-in and look-through basis. Stress tests also form an
integral part of the Group’s recovery and resolution plan (RRP).
Within the RRP, stress tests provide the indicative scenario sever-
ity required to reach recovery and resolution capital levels.
Stress testing provides key inputs for managing the following
objectives of the risk appetite framework:
p Ensuring Group-wide capital adequacy on both a regula-
tory basis and under stressed conditions: We run a suite of
scenarios on forecasted financial metrics such as revenues,
expenses, pre-tax income and q risk-weighted assets. The
post-stress capital ratios are assessed against the risk appe-
tite of the Group.
p Maintaining stable earnings: We mainly use stress testing to
quantitatively assess earnings stability risk. Earnings-loss-trig-
gers are established and monitored to contain excessive risk-
taking which could compromise our earnings stability.
We also conduct externally defined stress tests that meet the spe-
cific requirements of regulators. For example, as part of various
regular stress tests and analysis, FINMA requires a semi-annual
loss potential analysis that includes an extreme scenario that sees
European countries experience a severe recession resulting from
the worsening of the European debt crisis.

136
Methodology and scope of Group-wide stress testing
Stress tests are carried out to determine stressed position losses,
earnings volatility and stressed capital ratios using historical, for-
ward-looking and reverse stress testing scenarios. The scope of
stress testing includes market, credit default, operational, business
and pension risk. Stress tests also include the scenario impact on
risk-weighted assets through changes to market, credit and opera-
tional components.
We use historical stress testing scenarios to consider the
impact of market shocks from relevant periods of extreme market
disturbance. Standardized severity levels allow comparability of
severity across differing risk types. The calibration of bad day, bad
week, severe event and extreme event scenarios involves the iden-
tification of the worst moves that have occurred in recent history.
Severe flight to quality is our main scenario used for Group-wide
stress testing and risk appetite setting. It is a combination of mar-
ket shocks and defaults that reflects conditions similar to what fol-
lowed the Lehman collapse during the fourth quarter of 2008. The
severe flight to quality scenario assumes a severe market crash
in equity and commodity markets, along with a widening of credit
spreads and stressed default rates.
We use forward-looking stress testing scenarios to comple-
ment historical scenarios. The forward-looking scenarios are cen-
tered on potential macroeconomic, geopolitical or policy threats. A
risk council comprised of internal economists, front office and rep-
resentatives of the risk management function discusses the back-
drop to several forward-looking scenarios. The risk council reviews
a wide range of scenarios and selects those that are most relevant
to the analysis of key macroeconomic shocks. Some examples
of forward-looking scenarios include US and European country
recessions, Middle East conflict and the impact of monetary policy
changes by central banks. Various scenarios are also used to miti-
gate concentration risks across the entire firm, such as the credit
concentration scenario. During 2014, the Group focused on the
following forward-looking scenarios:
p Ending of credit cycle: there is a tightening in credit markets
and the US economy slides into a deep and prolonged reces-
sion with a substantial increase in default rates.
p Sovereign and banking crisis in a eurozone country: after sev-
eral of its banks failed the asset quality stress results in Octo-
ber 2014, a significant eurozone country enters into a deep
recession that leads to a spike in its sovereign yields and to a
confidence crisis in its domestic banking sector, with contagion
to selected other eurozone countries. The eurozone is pushed
into a deep recession with a severe drop in corporate earnings
leading to defaults.
p Euro deflation scenario: the eurozone heads into deflation, the
credit default cycle gradually worsens, and banks are stressed
and forced to reduce lending, leading to a tightening of the
money supply.
p Emerging markets hard landing scenario: a slowdown in a
major Asian economy, driven by defaults in the non-regulated
part of its finance industry, exacerbates falling investor confi-
dence. Massive capital flight from emerging markets causes
overall emerging markets gross domestic product growth to
decline significantly, impacting growth in the eurozone and US
economies.
p Escalation of the Ukraine crisis: escalation of the Ukraine crisis
triggers sanctions impacting Russia’s financial sector. Russia
enters into a severe recession impacting the global economy,
and flight to safety drives capital away from emerging markets.
The scenarios are reviewed and updated regularly as markets and
business strategies evolve.
We use reverse stress testing scenarios to complement tradi-
tional stress testing and enhance our understanding of business
model vulnerabilities. Reverse stress testing scenarios define a
range of severe adverse outcomes and identify what could lead to
these outcomes. The more severe scenarios include large counter-
party failures, sudden shifts in market conditions, operational risk
events, credit rating downgrades and the shutdown of wholesale
funding markets.
Governance
Our stress testing framework is comprehensive and governed
through a dedicated steering committee. The scenario steer-
ing committee reviews the scenario methodology and approves
changes to the scenario framework. Stress tests are conducted on
a regular basis and the results, trend information and supporting
analysis are reported to the Board, senior management, the busi-
ness divisions and regulators.
Market risk
Definition
Market risk is the risk of financial loss arising from movements
in market prices. The movements in market prices that generate
financial losses are considered to be adverse changes in interest
rates, credit spreads, foreign exchange rates, equity and commod-
ity prices and other factors, such as market volatility and the corre-
lation of market prices. A typical transaction or position in financial
instruments may be exposed to a number of different market risks.
Our trading portfolios (trading book) and non-trading portfolios
(banking book) have different sources of market risk.
Sources of market risk
Market risks arise from both our trading and non-trading business
activities. The classification of assets into trading book and bank-
ing book portfolios determines the approach for analyzing our mar-
ket risk exposure. This classification reflects the business and risk
management perspective and may be different from the classifica-
tion of these assets for financial reporting purposes.
Trading book
Market risks from our trading book primarily relate to our trading
activities in Investment Banking. Private Banking Wealth Man-
agement also engages in trading activities, but to a much lesser
extent. Our trading book, as determined for risk management pur-
poses, typically includes fair-valued positions only, primarily of the

Risk management
following balance sheet items: trading assets and trading liabili-
ties, investment securities, other investments, other assets (mainly
derivatives used for hedging, loans and real estate held-for-sale),
short-term borrowings, long-term debt and other liabilities (mainly
derivatives used for hedging).
We are active in most of the principal trading markets of the
world, using the majority of common trading and hedging prod-
ucts, including derivatives such as swaps, futures, options and
structured products. Some of the structured products are cus-
tomized transactions using combinations of derivatives and are
executed to meet specific client or proprietary needs. As a result
of our broad participation in products and markets, our trading
strategies are correspondingly diverse and exposures are generally
spread across a range of risks and locations.
The market risks associated with the embedded derivative ele-
ments of our structured products are actively monitored and man-
aged on a portfolio basis as part of our overall trading book and
are reflected in our qVaR measures.
Banking book
Market risks from our banking book primarily relate to asset and
liability mismatch exposures, equity participations and investments
in bonds and money market instruments. Our businesses and
the Corporate Center have non-trading portfolios that carry mar-
ket risks, mainly related to changes in interest rates but also to
changes in foreign exchange rates, equity prices and, to a lesser
extent, commodity prices. Our banking book, as determined for
risk management purposes, includes a majority of the following
balance sheet items: loans, central bank funds sold, securities pur-
chased under resale agreements and securities borrowing trans-
actions, cash and due from banks, brokerage receivables, due to
banks, customer deposits, central bank funds purchased, secu-
rities sold under repurchase agreements and securities lending
transactions, brokerage payables, selected positions of short-term
borrowings and long-term debt, and other assets and liabilities not
included in the trading portfolio.
We assume interest rate risks in our banking book through
interest rate-sensitive positions originated by Private Banking
Wealth Management, 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 in Invest-
ment Banking. Savings accounts and many other retail banking
products have no contractual maturity date or direct market-linked
interest rate and, since October 2014, have been risk-managed
within Private Banking Wealth Management on a pooled basis
using replication portfolios. The replication portfolios approximate
the interest rate characteristics of the underlying products. This
particular source of market risk is monitored on a daily basis. Fol-
lowing the transfer of the interest rate risk management of these
portfolios from Treasury to Private Banking Wealth Manage-
ment in October 2014, Treasury continues to be responsible for
the modeling and monitoring of the replication portfolios.
Evaluation and management of market risk
We use market risk measurement and management methods
capable of calculating comparable exposures across our many
activities and focused tools that can model unique characteristics
of certain instruments or portfolios. The tools are used for inter-
nal market risk management, internal market risk reporting and
external disclosure purposes. Our principal market risk measure-
ment is VaR. In addition, our market risk exposures are reflected
in scenario analysis, as included in our stress testing framework,
position risk, as included in our economic risk capital, and sensitiv-
ity analysis. Each evaluation method aims to estimate the potential
loss that we can incur due to an adverse market movement over
a defined holding period with a specified confidence level. VaR,
scenario analysis, position risk and sensitivity analysis complement
each other in our market risk assessment and are used to measure
market risk at the Group level. Our risk management practices are
regularly reviewed to ensure they remain appropriate.
Market risk in the trading book is measured using VaR and
market risk in our banking book is measured using sensitivity anal-
ysis on related market factors.
Value-at-Risk
VaR is a risk measure which quantifies the potential loss on a given
portfolio of financial instruments over a certain holding period that
is expected to occur at a certain confidence level. VaR can be
applied for all financial instruments with sufficient price histories.
Positions are aggregated by risk category rather than by product.
For example, interest rate risk VaR includes the risk of fluctua-
tions in interest rates arising from interest rate, foreign exchange,
equity and commodity options, money market and swap transac-
tions and bonds. The use of VaR allows the comparison of risk in
different businesses, such as fixed income and equity, and also
provides a means of aggregating and netting a variety of posi-
tions within a portfolio to reflect actual correlations between differ-
ent assets, applying the concept of portfolio diversification benefit
described above for position risk. Our VaR model is designed to
take into account a comprehensive set of risk factors across all
asset classes.
VaR is an important tool in risk management and is used for
measuring quantifiable risks from our activities exposed to market
risk on a daily basis. In addition, VaR is one of the main risk mea-
sures for limit monitoring, financial reporting, calculation of regula-
tory capital and regulatory backtesting.
Our VaR model is predominantly based on historical simula-
tion which derives plausible future trading losses from the analysis
of historic market prices. The model is responsive to changes in
volatility through the use of exponential weighting, which applies
a greater weight to more recent events, and the use of expected
shortfall equivalent measures to ensure all significant events are
included in the model. We use the same VaR model for risk man-
agement (including limit monitoring and financial reporting), reg-
ulatory capital calculation and regulatory backtesting purposes,
except for the confidence level and holding period used and the
scope of financial instruments considered.

138
For our risk management VaR, we use a two-year historical
dataset, a one-day holding period and a 98% confidence level.
This means that we would expect daily mark-to-market trading
losses to exceed the reported VaR not more than twice in 100
trading days over a multi-year observation period. This measure
captures risks in trading books only and includes securitization
positions. It is more closely aligned to the way we consider the
risks associated with our trading activities. Our VaR used for limit
monitoring purposes also uses a two-year historical dataset, a
one-day holding period and a 98% confidence level. This measure
includes positions from both the trading book and the banking
book and also includes securitization positions.
For regulatory capital purposes, we operate under the Basel III
market risk framework which includes the following components
for the calculation of regulatory capital: qregulatory VaR, regula-
tory VaR for backtesting purposes, qstressed VaR, qIRC and the
impact of changes in a counterparty’s credit spreads (also known
as qCVA). The regulatory VaR for capital purposes uses a two-
year historical dataset, a ten-day holding period and a 99% confi-
dence level. This measure captures risks in the trading book only
and excludes securitization positions as these are treated under
the securitization approach for regulatory purposes. The regulatory
VaR for backtesting purposes uses a two-year historical dataset,
a one-day holding period and a 99% confidence level. This mea-
sure captures risks in the trading book and includes securitization
positions. Stressed VaR replicates the regulatory VaR calculation
on the Group’s current portfolio over a continuous one-year obser-
vation period that results in the highest VaR. The continuous one-
year observation period on a historical dataset starting in 2006
avoids the smoothing effect of the two-year dataset used for our
risk management and regulatory VaR, allows for a longer history
of potential loss events and helps reduce the pro-cyclicality of the
minimum capital requirements for market risk. IRC is a regulatory
capital charge for default and migration risk on positions in the
trading books and intended to complement additional standards
being applied to the VaR modeling framework, including stressed
VaR.
Assumptions used in our market risk measurement methods
for regulatory capital purposes are compliant with the standards
published by the BCBS and other related international standards
for market risk management. We have approval from FINMA, as
well as from certain other regulators of our subsidiaries, to use our
regulatory VaR model in the calculation of trading book market risk
capital requirements. We continue to receive regulatory approval
for ongoing enhancements to the methodology, and the model is
subject to regular reviews by regulators.
Information required under Pillar 3 of the Basel framework
related to risk is available on our website at www.credit-suisse.
com/pillar3.
u Refer to “Risk measurement models” in Capital management – Regulatory
capital framework for further information on the use of our regulatory VaR model
in the calculation of trading book market risk capital requirements.
VaR limitations
The VaR model uses assumptions and estimates that we believe
are reasonable, but VaR only quantifies the potential loss on a
portfolio based on the behavior of historical market conditions. The
main assumptions and limitations of VaR as a risk measure are:
p VaR relies on historical data to estimate future changes in
market conditions, which may not capture all potential future
outcomes, particularly where there are significant changes in
market conditions, such as increases in volatilities;
p Although VaR captures the relationships between risk fac-
tors, these relationships may be affected by stressed market
conditions;
p VaR provides an estimate of losses at a specified confidence
level, which means that it does not provide any information
on the size of losses that could occur beyond that confidence
level;
p VaR is based on either a one-day (for internal risk manage-
ment, backtesting and disclosure purposes) or a ten-day (for
regulatory capital purposes) holding period. This assumes that
risks can be either sold or hedged over the holding period,
which may not be possible for all types of exposure, particularly
during periods of market illiquidity or turbulence; and
p VaR is calculated using positions held at the end of each busi-
ness day and does not include intra-day exposures.
To mitigate some of the VaR limitations and estimate losses asso-
ciated with unusually severe market movements, we use other
metrics designed for risk management purposes and described
above, including stressed VaR, position risk and scenario analysis.
For some risk types there can be insufficient historical data for
a calculation within the Group’s VaR model. This often happens
because underlying instruments may have traded only for a limited
time. Where we do not have sufficient market data, either mar-
ket data proxies or extreme parameter moves for these risk types
are used. Market data proxies are selected to be as close to the
underlying instrument as possible. Where neither a suitable market
dataset nor a close proxy is available, extreme parameter moves
are used which are aggregated assuming a zero correlation.
Risks that are not currently implemented within the Group’s
VaR model such as certain basis risks, higher order risks and cross
risks between asset classes are captured through q risk not in
VaR (RNIV) calculations. RNIV is also used if accurate sensitivity
analysis cannot be performed for the respective risks.
We use a risk factor identification process to ensure that risks
are identified and measured correctly. There are two parts to this
process. First, the market data dependency approach systemati-
cally determines the risk requirements based on data inputs used
by front-office pricing models and compares this with the risk
types that are captured by the Group’s VaR model and the RNIV
framework. Second, the product-based approach is a qualitative
analysis of product types to identify the risk types that those prod-
uct types would be exposed to. A comparison is again made with
the risk types that are captured in the VaR and RNIV frameworks.
Through this process, risks that are not yet captured in the VaR

Risk management
model or the RNIV framework are identified. A plan for including
these risks in one or the other framework can then be devised.
RNIV is captured in our economic risk capital framework.
VaR backtesting
Various techniques are used to assess the accuracy of the VaR
methodology used for risk management and regulatory purposes.
Backtesting is used to assess the accuracy of the regulatory VaR
model. The purpose of the VaR backtesting process is to assess
the accuracy and performance of our regulatory VaR model, to
assess if our regulatory capital is sufficient to absorb actual losses,
and to encourage developments to our VaR model. Backtesting
involves comparing the results produced from the VaR model with
the actual daily trading revenue. Actual daily trading revenues for
the purpose of this backtesting are defined as gains and losses
arising from our trading activities, including mark-to-market gains
and losses, the net cost of funding, and fees and commissions.
Actual daily trading revenues do not include gains and losses
resulting from valuation adjustments associated with counterparty
and own credit exposures. A backtesting exception occurs when
a trading loss exceeds the daily VaR estimate. Statistically, at the
overall Group level, given the 99% confidence level and the one-
day holding period used in the regulatory VaR model for backtest-
ing purposes, we would expect daily trading losses to exceed the
calculated daily VaR not more than once in 100 trading days over a
multi-year observation period.
uses a multiplier to impose an increase in market risk capital
for every regulatory VaR exception over four in the prior rolling
revenues. The subset of actual daily trading revenues is defined on
a consistent basis as the gains and losses for the regulatory VaR
model but excludes non-market elements such as fees, commis-
sions, non-market-related provisions, gains and losses from intra-
day trading, cancellations and terminations.
VaR governance
Like other sophisticated models, our VaR model is subject to inter-
nal governance including validation by a team of modeling experts
independent from the model developers. Validation includes iden-
tifying and testing the model’s assumptions and limitations, inves-
tigating its performance through historical and potential future
stress events, and testing that the live implementation of the
model behaves as intended. We employ a range of different con-
trol processes to help ensure that the models used for market risk
remain appropriate over time. As part of these control processes,
a dedicated VaR governance steering committee meets regularly
to review model performance and approve any new or amended
models.
Sensitivity analysis
Market risks associated with our banking book positions are
measured, monitored and limited using several tools, including
economic risk capital, scenario analysis, sensitivity analysis and
VaR. For the purpose of this disclosure, the aggregated market
risks associated with our banking book positions are measured
using sensitivity analysis. Sensitivity analysis is a technique used
to determine how different values of an independent variable
will impact a particular dependent variable under a given set of
assumptions. The sensitivity analysis for the banking book posi-
tions measures the potential change in economic value resulting
from specified hypothetical shocks to market factors. It is not a
measure of the potential impact on reported earnings in the cur-
rent period, since the banking book positions generally are not
marked to market through earnings.
Credit and debit valuation adjustments
Credit valuation adjustments (CVA) are modifications to the mea-
surement of derivative assets used to reflect the credit risk of coun-
terparties. Debit valuation adjustments (DVA) are modifications to
the measurement of derivative liabilities used to reflect an entity’s
own credit risk. VaR excludes the impact of changes in both coun-
terparty and our own credit spreads on derivative products.
Credit risk
Definition
Credit risk is the risk of financial loss arising as a result of a bor-
rower 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 counterparty default, a bank gener-
ally incurs a loss equal to the amount owed by the debtor, less any
recoveries from foreclosure, liquidation of collateral, or the restruc-
turing of the debtor company. A change in the credit quality of a
counterparty has an impact on the valuation of assets measured at
qfair value, with valuation changes recorded in the consolidated
statements of operations.
Sources of credit risk
The majority of our credit risk is concentrated in the Wealth Man-
agement Clients and Corporate Institutional Clients businesses
within the Private Banking Wealth Management division and in
the Investment Banking division. Credit risk arises from lending
products, irrevocable loan commitments, credit guarantees and
letters of credit, and results from counterparty exposure arising
from qderivatives, foreign exchange and other transactions.
Evaluation and management of credit risk
Effective credit risk management is a structured process to assess,
measure, monitor and manage risk on a consistent basis. This
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.
Our credit risk management framework covers virtually all
of the Group’s credit exposure and includes the following core
components:
p individual counterparty rating systems;
p transaction rating systems;

140
p a counterparty credit limit system;
p country concentration limits;
p industry concentration limits;
p product limits;
p risk-based pricing methodologies;
p active credit portfolio management; and
p a credit risk provisioning methodology.
Counterparty and transaction rating systems
We employ a set of credit ratings for the purpose of internally rat-
ing counterparties to whom we are exposed to credit risk as the
contractual party, including with respect to loans, loan commit-
ments, securities financings or OTC derivative contracts. Credit
ratings are intended to reflect the risk of default of each counter-
party. Ratings are assigned based on internally developed rating
models and processes, which are subject to governance and inter-
nally independent validation procedures.
Our internal ratings may differ from a counterparty’s exter-
nal ratings, if one is available. Internal ratings for consumer loans
and for corporates managed on the Swiss platform are regularly
reviewed depending on loan type, client segment, collateral or
event-driven developments. Internal ratings for all other corpo-
rate and institutional credit facilities are reviewed at least annu-
ally. For the calculation of internal risk estimates (e.g., an esti-
mate of expected loss in the event of a counterparty default) and
risk-weighted assets, a qPD, qLGD and qEAD is assigned to
each facility. These three parameters are primarily derived from
internally developed statistical models that have been backtested
against internal experience, validated by a function independent
of the model owners on a regular basis and approved by our main
regulators for application in the regulatory capital calculation in the
qA-IRB approach under the Basel framework.
For corporates managed on the Swiss platform, consumer
loans, and since 2015 the majority of all other corporate and insti-
tutional counterparties, an internal rating or a PD is calculated
directly by proprietary statistical rating models. These models are
based on internally compiled data comprising both quantitative (pri-
marily balance sheet information for corporates and loan-to-value
(LTV) ratio and the borrower’s income level for mortgage lending)
and qualitative factors (e.g., credit histories from credit reporting
bureaus). For models calculating a PD an equivalent rating based
on the Standard Poor’s rating scale is assigned based on the
PD band associated with each rating, which is used for disclosure
purposes.
For the remaining corporate and institutional facilities not
yet using a statistical rating model, a PD is determined through
an internal rating assigned on the basis of a structured expert
approach. Internal credit ratings are based on an analysis and eval-
uation of both quantitative and qualitative factors concentrating on
economic trends and financial fundamentals. Credit officers make
use of peer analysis, industry comparisons, external ratings and
research as well as the judgment of credit experts for the purpose
of their analysis. The PD for each internal rating is calibrated to
historical default experience using internal data and external data
from Standard Poor’s.
LGD represents the expected loss on a transaction should a
default occur, and our LGD models consider the structure, col-
lateral, seniority of the claim, counterparty industry, recovery costs
and downturn conditions.
EAD represents the expected exposure in the event of a
default. Off-balance sheet exposures are converted into expected
EADs through the application of a credit conversion factor which is
modeled using internal data.
In the third quarter of 2014, we enhanced our internal credit
rating methodology for q lombard loans on the Swiss platform
across all loan classes by considering the quality and diversification
of collateral securities as a basis for determining the internal risk
rating both for regulatory and financial reporting purposes.
We use internal rating methodologies consistently for the pur-
poses of approval, establishment and monitoring of credit lim-
its and credit portfolio management, credit policy, management
reporting, risk-adjusted performance measurement, economic risk
capital measurement and allocation and financial accounting. This
approach also allows us to price transactions involving credit risk
more accurately, based on risk/return estimates.
Credit risk and country concentration limits overview
Credit limits are used to manage individual counterparty credit risk.
A system of limits is also established to address concentration risk
in the portfolio, including a comprehensive set of country limits
and limits for certain products and industries. In addition, credit
risk concentration is regularly supervised by credit and risk man-
agement committees, taking current market conditions and trend
analysis into consideration. A rigorous credit quality review process
provides an early identification of possible changes in the cred-
itworthiness of clients and includes regular asset and collateral
quality reviews, business and financial statement analysis, and rel-
evant economic and industry studies. Regularly updated watch lists
and review meetings are used for the identification of counterpar-
ties that could be subject to adverse changes in creditworthiness.
Active credit portfolio management
Our regular review of the credit quality of clients and counterpar-
ties does not depend on the accounting treatment of the asset or
commitment. We regularly review the appropriateness of allow-
ances for credit losses. Changes in the credit quality of coun-
terparties of loans held at q fair value are reflected in valuation
changes recorded directly in revenues, and therefore are not part
of the impaired loans balance. Impaired transactions are further
classified as potential problem exposure, non-performing expo-
sure, non-interest-earning exposure or restructured exposure, and
the exposures are generally managed within credit recovery units.
The Credit Portfolio and Provisions Review Committee regularly
determines the adequacy of allowances.

Risk management
Credit risk provisioning methodology
We maintain specific valuation allowances on loans valued at amor-
tized cost, which we consider a reasonable estimate of losses identi-
fied in the existing credit portfolio. We provide for loan losses based
on a regular and detailed analysis of all counterparties, taking col-
lateral value into consideration. If uncertainty exists as to the repay-
ment of either principal or interest, a specific valuation allowance is
either created or adjusted accordingly. The specific allowance for
loan losses is revalued by Group credit risk management at least
annually or more frequently depending on the risk profile of the bor-
rower or credit relevant events.
In accordance with accounting principles generally accepted in
the US (US GAAP), an inherent loss allowance is estimated for all
loans not specifically identified as impaired and that, on a portfolio
basis, are considered to contain inherent losses. Inherent losses
in the Private Banking Wealth Management lending portfolio
are determined based on current internal risk ratings, collateral
and exposure structure, applying historical default and loss experi-
ence in the ratings and loss parameters. In Investment Banking,
inherent losses on loans are estimated based on a model using
long-term industry-wide historical default and recovery data taking
into account the credit rating and industry of each counterparty. A
separate component of the calculation reflects the current market
conditions in the allowance for loan losses. Qualitative adjustments
to reflect current market conditions or any other factors not cap-
tured by the model are approved by management and reflected in
the allowance for loan losses. A provision for inherent losses on
off-balance sheet lending-related exposure, such as contingent
liabilities and irrevocable commitments, is also determined, using a
methodology similar to that used for the loan portfolio.
Risk mitigation
We actively manage our credit exposure utilizing credit hedges,
collateral and guarantees. Collateral is security in the form of an
asset, such as cash and marketable securities, which serves to
mitigate the inherent risk of credit loss and to improve recoveries in
the event of a default.
Collateral valuation and management
The policies and processes for collateral valuation and management
are driven by legal documentation that is agreed with our counterpar-
ties and an internally independent collateral management function.
For portfolios collateralized by marketable securities, collateral
is valued daily, except as agreed otherwise in contracts or other
legal documentation. The mark-to-market prices used for valuing
collateral are a combination of Group-internal and market prices
sourced from trading platforms and service providers, as appropri-
ate. The management of collateral is standardized and centralized
to ensure complete coverage of traded products.
For the Private Banking Wealth Management mortgage
lending portfolio, real estate property is valued at the time of credit
approval and periodically thereafter, according to our internal poli-
cies and controls, depending on the type of loan (e.g., residential
or commercial loan) and loan-to-value ratio.
Primary types of collateral
The primary types of collateral typically depend on the type of
credit transaction.
Collateral securing foreign exchange transactions and OTC
trading activities primarily includes cash and US treasury instru-
ments, qG10 government securities and corporate bonds.
Collateral securing loan transactions primarily includes finan-
cial collateral pledged against loans collateralized by securities of
Private Banking Wealth Management clients (primarily cash and
marketable securities), real estate property for mortgages, mainly
residential, but also multi-family buildings, offices and commercial
properties, and other types of lending collateral such as accounts
receivable, inventory, plant and equipment.
Credit risk governance
Credit risk is managed and controlled by Group credit risk manage-
ment, an independent function within the risk management area
and governed by a framework of policies and procedures. Key pro-
cesses are reviewed through supervisory checks on a regular basis
by management, including the functional area head.
Operational risk
Definition
Operational risk is the risk of financial loss arising from inadequate or
failed internal processes, people or systems, or from external events.
Sources of operational risk
Operational risk is inherent in most aspects of our business,
including the systems and processes that support our activities. It
comprises a large number of disparate risks that can manifest in a
variety of ways. Particularly relevant examples of operational risk
include the risk of fraudulent transactions, trade processing errors,
business disruptions, failures in regulatory compliance, defective
transactions, and unauthorized trading events. Operational risk can
arise from human error, inappropriate conduct, failures in systems,
processes and controls, or natural and man-made disasters.
Evaluation and management of operational risk
Operational risk framework
The diverse nature and wide extent of operational risk makes it
inherently difficult to measure. We believe that effective manage-
ment of operational risk requires a common Group-wide opera-
tional risk framework that focuses on the early identification,
recording, assessment, monitoring, prevention and mitigation of
operational risks, as well as timely and meaningful management
reporting. We started to introduce our current operational risk
framework in 2013, which improved the integration of previously
separate operational risk processes, providing a more coherent
approach to managing all aspects of the operational risk land-
scape. Over the past two years, we have redesigned the frame-
work, introducing new components and upgrading existing com-
ponents with a particular focus on ensuring that the components
work well together. The following diagram provides a representa-
tion of the main components of our operational risk framework.

142
Operational risk framework
Inputs
Outputs
Risk and control self-assessment
Governance and policies
Operational risk appetite
Conduct and behavior
Operational risk register
Top operational risks and
remediation plans
Internal control assessment
Reporting
Risk and control indicators
Responses framework
Incident data
Scenarios and
capital modelling
Identify inherent risks Assess controls
Accept or remediate
residual risks
Monitor risk levels
The operational risk framework provides a structured approach to
managing operational risk. It seeks to apply consistent standards
and techniques for evaluating risks across the Group while provid-
ing individual businesses with sufficient flexibility to tailor specific
components to their own needs, as long as they meet Group-wide
minimum standards. The main components of the operational risk
framework are described below:
p Governance and policies: The operational risk framework relies
on an effective governance process that establishes clear roles
and responsibilities for managing operational risk and defines
appropriate escalation processes for outcomes that are out-
side expected levels. We utilize a comprehensive set of policies
and procedures that set out how employees are expected to
conduct their activities.
p Operational risk appetite: This determines our approach to risk-
taking and articulates the motivations for taking, accepting or
avoiding certain types of risks or exposures. Senior manage-
ment expresses their risk appetite in terms of quantitative tol-
erance levels that apply to operational risk incidents and quali-
tative statements covering outcomes that should be avoided.
They define their risk appetite with the relevant risk manage-
ment committees in agreement with the operational risk man-
agement function.
p Operational risk register: The register comprises a catalog
of inherent operational risks arising as a consequence of our
business activities. It provides a consistent approach for clas-
sifying operational risks across the Group which ensures that
they are treated by other operational risk framework compo-
nents using the appropriate processes and tools.
p Internal control assessment: We utilize a comprehensive set
of internal controls that are designed to ensure that our activi-
ties follow agreed policies and that processes operate as
intended. Certain key controls are subject to independent test-
ing to evaluate their effectiveness. The results of these tests
are considered by other operational risk framework compo-
nents, such as in the risk and control self-assessment (RCSA)
process.
p Risk and control indicators: These are metrics that are used
to monitor particular operational risks and controls over time.
They may be associated with thresholds that define acceptable
performance and provide early warning signals about potential
impending issues.
p Incident data: We systematically collect, analyze and report
data on operational risk incidents to ensure that we under-
stand the reasons why they occurred and how controls can be
improved to reduce the risk of future incidents. We focus on
both incidents that result in economic losses and events that
provide information on potential control gaps, even if no losses
occurred. We also collect and utilize available data on incidents
at relevant peer firms to identify potential risks that may be rel-
evant in the future, even if they have not impacted the Group.
p Risk and control self-assessments: RCSAs are comprehen-
sive, bottom-up assessments of the key operational risks in
each business and control function. They comprise a self-
assessment that covers the inherent risks of each business
and control function, an evaluation of the effectiveness of the
controls in place to mitigate these risks and a decision to either
accept or remediate any residual risks. The self-assessments
are subject to quality assurance by the operational risk man-
agement function to ensure that they have been conducted
appropriately. RCSAs utilize other components of the opera-
tional risk framework, such as risk and control indicators and
incident data, and they generate outputs that are used to man-
age and monitor risks.
p Top operational risks and remediation plans: A set of top oper-
ational risks are used to highlight the most significant risks to
senior management, along with associated risk remediation
efforts. Top operational risks are generated using both a top-
down assessment by senior management and a bottom-up

Risk management
process that collates the main themes arising from the RCSA
process.
p Reporting: We produce a wide range of regular management
information reports covering the key inputs and outputs of the
operational risk framework. These reports are used by senior
management to monitor outcomes against agreed targets and
tolerance levels.
p Responses framework: This provides a structured approach to
responding to operational risk incidents and breaches of oper-
ational risk appetite. The incident management component
includes a defined process for identifying, categorizing, inves-
tigating, escalating and remediating incidents. We conduct
detailed investigations for significant operational risk incidents.
These investigations seek to assess the causes of control fail-
ings, establish appropriate remediation actions and ascertain
whether events have implications for other businesses. They
can result in recommendations to impose restrictions on busi-
nesses while risk management processes and controls are
improved. The breach component provides a methodology for
evaluating breaches of quantitative and qualitative operational
risk appetite statements. Its goal is to provide senior manage-
ment with the information needed to make decisions on how
best to remediate issues that fall outside agreed risk appetite
levels.
p Scenarios and capital modelling: Scenarios are used to identify
and measure exposure to a range of adverse events, such as
unauthorized trading. These scenarios help businesses assess
the suitability of controls in the light of potential losses, and
they are also an input to the internal model used by the Group
to calculate economic and regulatory capital. These capital
charges are allocated to individual businesses for performance
measurement purposes and to incentivize appropriate man-
agement actions.
p Conduct and behavior: Recognizing that effective operational
risk management relies on employees conducting themselves
appropriately, several operational risk framework components
include assessments of behavior. For example, investigations
of incidents typically consider whether employees escalated
issues at an appropriately early stage. Risks that have implica-
tions for conduct risk can be identified and assessed via the
operational risk register and the RCSA process.
We are continuously enhancing our operational risk management
practices and have an ongoing program to roll out improvements to
each of the components of the operational risk framework and to
ensure that the links between individual components work effec-
tively. Potential enhancements are typically tested in one area to
check that they deliver the intended benefits before being rolled
out across the Group. In 2014, key enhancements included the
introduction of the set of business conduct behaviors, refinements
to the way in which operational risk appetite is set and measured
across the Group, the introduction of the new responses frame-
work, improvements in risk reporting and further improvements
to the RCSA process to ensure that risks are assessed on a
consistent basis across the Group. We plan to roll out certain of
these enhanced processes across the Group in stages.
In addition to managing and mitigating operational risks under
the operational risk framework through business- and risk-related
processes and organization, we also transfer the risk of potential
loss from certain operational risks to third-party insurance compa-
nies, where appropriate.
Operational risk regulatory capital measurement
We have used an internal model to calculate the regulatory capital
requirement for operational risk under the qAMA approach since
2008. In 2014, we introduced an enhanced internal model that
incorporated recent developments regarding operational risk mea-
surement methodology and associated regulatory guidance. The
revised model for calculating the regulatory capital requirement for
operational risk was approved by FINMA with effect from Janu-
ary 1, 2014. We view the revised model as a significant enhance-
ment to our capability to measure and understand the operational
risk profile of the Group that is also more conservative than the
previous approach.
The model is based on a loss distribution approach that uses
historical data on internal and relevant external losses of peers
to generate frequency and severity distributions for a range of
potential operational risk loss scenarios, such as an unauthorized
trading incident or a material business disruption. Business experts
and senior management review, and may adjust, the parameters
of these scenarios to take account of business environment and
internal control factors, such as RCSA results and risk and control
indicators, to provide a forward-looking assessment of each sce-
nario. The AMA capital calculation approved by FINMA includes all
litigation-related provisions and also an add-on component relating
to the aggregate range of reasonably possible litigation losses that
are disclosed in our financial statements but are not covered by
existing provisions. Insurance mitigation is included in the regula-
tory capital requirement for operational risk where appropriate,
by considering the level of insurance coverage for each scenario
and incorporating haircuts as appropriate. The internal model then
uses the adjusted parameters to generate an overall loss distribu-
tion for the Group over a one-year time horizon. The AMA capital
requirement represents the 99.9th percentile of this overall loss
distribution. In 2014, we introduced a more risk-sensitive approach
to allocating the AMA capital requirement to businesses that is
designed to be more forward-looking and incentivize appropriate
risk management behaviors.
Operational risk governance
Each individual business area takes responsibility for its opera-
tional risks and the provision of adequate resources and proce-
dures for the management of those risks. Businesses are sup-
ported by designated operational risk teams who are responsible
for the implementation of the operational risk management frame-
work, methodologies, tools and reporting within their areas as well
as working with management on any operational risk issues that
arise. Businesses and relevant control functions meet regularly

144
to discuss operational risk issues and identify required actions to
mitigate risks.
The operational risk management function is responsible for
the overall design of the operational risk management framework,
for operational risk capital modeling and for providing assistance
and challenge to business line operational risk teams. It ensures
the cohesiveness of policies, tools and practices throughout the
Group for operational risk management, specifically with regard to
the identification, evaluation, mitigation, monitoring and reporting
of relevant operational risks.
Operational risk exposures, metrics, issues and remediation
efforts are discussed at the quarterly CARMC meetings cover-
ing operational risk and at divisional risk management commit-
tees, which have senior staff representatives from all the relevant
functions.
Conduct risk
Conduct risk is the risk that poor conduct by the Group, employ-
ees or representatives could result in clients not receiving a fair
transaction, damage to the integrity of the financial markets or the
wider financial system, or ineffective competition in the markets in
which we operate that disadvantages clients.
Conduct risk may arise from a variety of sources, including
unauthorized trading, the potential unsuitability of products sold or
advice provided to clients, inadequate disclosure, trade processing
errors, inaccurate benchmark submissions, failure to safeguard
client data or assets, and breaches of regulatory rules or laws by
individual employees or the Group’s market conduct.
Conduct risk is being further embedded into the RCSA pro-
cess within the operational risk framework, which considers the
risks generated by each business and the strength of the associ-
ated mitigating controls. Conduct risk is also assessed by review-
ing past incidents within the Group and at other firms in the finan-
cial services sector.
Conduct risk is primarily addressed through specific supervi-
sory controls implemented across the Group and targeted training
activities. We seek to promote good behavior and conduct through
the Group’s Code of Conduct, which provides a clear statement of
the ethical values and professional standards as a basis for main-
taining and strengthening our reputation for integrity, fair deal-
ing and measured risk-taking, and the set of business conduct
behaviors. The Code of Conduct and the set of business conduct
behaviors are linked to our employee performance assessment
and compensation processes.
Technology risk
Technology risk is the risk of financial loss arising from failure,
exploitation of vulnerabilities or other deficiencies in the electronic
platforms that support our daily operations and the system applica-
tions and infrastructure on which they reside. As a component of
operational risk, technology risk is inherent not only in our informa-
tion technology assets, but also in the people and processes that
interact with them.
Cyber risk, which is part of technology risk, is the risk that
our systems will not operate properly or will be compromised as a
result of cyber-attacks, security breaches, unauthorized access,
loss or destruction of data, unavailability of service, computer
viruses or other events that could have an adverse security impact.
Any such event could subject us to litigation or cause us to suffer a
financial loss, a disruption of our businesses, liability to our clients,
regulatory intervention or reputational damage. We could also be
required to expend significant additional resources to modify our
protective measures or to investigate and remediate vulnerabilities
or other exposures.
Service and infrastructure disruption risks are managed
through our business continuity management plan, our technology
risk management program and other contingency and resiliency
plans. Although we have business continuity plans, our businesses
face a wide variety of operational risks, including technology risk
arising from dependencies on information technology, third-party
suppliers and the worldwide telecommunications infrastructure. As
a global financial services company, we operate in a complex tech-
nological landscape covering our diverse business model. Ensur-
ing that the confidentiality, integrity and availability of information
assets are protected is critical to our operations.
Legal, compliance and regulatory risks
Legal risk is the risk of loss or imposition of damages, fines, pen-
alties or other liability or any other material adverse impact aris-
ing from circumstances including the failure to comply with legal
obligations, whether contractual, statutory or otherwise, changes
in enforcement practices, the making of a legal challenge or claim
against us, our inability to enforce legal rights or the failure to take
measures to protect our rights.
Compliance risk is the risk of legal or regulatory sanctions or
financial loss that may result from the failure to comply with laws,
regulations, rules or market standards.
Regulatory risk is the risk that changes in laws, regulations,
rules or market standards may limit our activities and have a nega-
tive effect on our business or our ability to implement strategic
initiatives, or can result in an increase in operating costs for the
business or make our products and services more expensive for
clients.
As part of our risk framework, legal, compliance and regulatory
risks fall within the definition of operational risk. Management of
these risks is the responsibility of all our employees.
Reputational risk
Reputational risk is the risk that negative perception by our stake-
holders may adversely impact client acquisition and damage our
business relationships with clients and counterparties, affecting
staff morale and reducing access to funding sources.
Reputational risk may arise from a variety of sources, includ-
ing the nature or purpose of a proposed transaction or service, the
identity or activity of a controversial client, the regulatory or political
climate in which the business will be transacted, and the potentially

Risk management
controversial environmental or social impacts of a transaction or
significant public attention surrounding the transaction itself.
Our policy is to avoid any transaction or service that brings
with it the risk of a potentially unacceptable level of damage to our
reputation. We have a number of measures to mitigate potential
reputational risk.
Reputational risk potentially arising from proposed business
transactions and client activity is assessed in the reputational risk
review process. The policy requires employees to be conservative
when assessing potential reputational impact and, where certain
indicators give rise to potential reputational risk, the relevant busi-
ness proposal or service must be submitted through the reputa-
tional risk review process. This involves a submission by an origi-
nator (any employee), endorsement by a business area head or
designee, and its subsequent referral to one of the regional repu-
tational risk approvers, each of whom is an experienced and high-
ranking senior manager, independent of the business divisions,
who has authority to approve, reject or impose conditions on our
participation in the transaction or service.
The RRSC, on a global level, and the regional reputational risk
committees, on a regional level, are the governing bodies respon-
sible for the oversight and active discussion of reputational risk
and sustainability issues. At the Board level, the Risk Committee
and Audit Committee jointly assist the Board in fulfilling its reputa-
tional risk oversight responsibilities by reviewing and assessing the
adequacy of the management of reputational risks.
In order to inform our stakeholders about how we manage
some of the environmental and social risks inherent to the banking
business, we publish our Corporate Responsibility Report, in which
we also describe our efforts to conduct our operations in a manner
that is environmentally and socially responsible and broadly contrib-
utes to society.
Fiduciary risk
Fiduciary risk is the risk of financial loss arising when the Group
or its employees, acting in a fiduciary capacity as trustee, invest-
ment manager or as mandated by law, do not act in the best inter-
est of the client in connection with the advice and management of
our client’s assets including from a product-related market, credit,
liquidity and operational risk perspective.
Monitoring investment performance and measuring risks
across discretionary client portfolios is central to our oversight pro-
gram. Areas of focus include:
p Monitoring client investment guidelines or breaches of invest-
ment fund obligations to investors. In certain cases, internal
limits or guidelines are also established and monitored.
p Ensuring discretionary portfolio managers’ investment
approach is in line with client expectations and in accordance
with written sales and marketing materials.
p Measuring investment performance of client investments and
comparing the returns against benchmarks to understand
sources and drivers of the returns and to assess risk mea-
sures such as sensitivities, stress scenarios, expected vola-
tility and liquidity across our portfolios to ensure that we are
managing the assets in line with the clients’ expectations and
risk tolerance.
p Treating clients with a prudent standard of care, which includes
information disclosure, subscriptions and redemptions pro-
cesses, trade execution and the highest ethical conduct.
Sound governance is essential for all discretionary management
activities including trade execution and investment process. Our
program targets daily, monthly or quarterly monitoring of all port-
folio management activities with independent analysis provided
to senior management. Formal review meetings are in place to
ensure that investment performance and risks are in line with
expectations and adequately supervised.
Strategy risk
Strategy risk is the risk of financial loss or reputational damage
arising from inappropriate strategic decisions, ineffective imple-
mentation of business strategies or an inability to adapt business
strategies in response to changes in the business environment.
Strategy risk may arise from a variety of sources, including:
p inadequate or inaccurate understanding of our existing capa-
bilities and competitive positioning;
p inadequate or inaccurate analysis of current and prospective
operating conditions in our markets including macroeconomic
environment, client and competitor behaviors and actions, reg-
ulatory developments and technological impacts;
p inappropriate strategic decisions, such as those pertaining to
which activities we will undertake, which markets and client
segments we will serve, and how we will position ourselves
relative to competitors;
p ineffective implementation of chosen business strategies;
p inability to properly identify and analyze key changes in our
operating environment, and to adapt strategies accordingly;
and
p inability to properly monitor progress against strategic
objectives.
A wide variety of financial, risk, client and market analyses are
used to monitor the effectiveness of our strategies and the perfor-
mance of our businesses against their strategic objectives. These
include analysis of current and expected operating conditions,
analysis of current and target market positioning, and detailed sce-
nario planning.
Strategic plans are developed by each division annually and
aggregated into a Group plan, which is reviewed by the CRO, CFO
and CEO before presentation to the Executive Board. Following
approval by the Executive Board, the Group plan is submitted for
review and approval to the Board. In addition, there is an annual
strategic review at which the Board evaluates the Group’s perfor-
mance against strategic objectives and sets the overall strategic
direction for the Group.
To complement the annual cycle, each division presents a more
detailed individual analysis to review key dimensions of its strat-
egy at various points during the year. Additionally, the CEO, the

146
Executive Board and individual business heads regularly assess
the performance of each business against strategic objectives
through a series of business reviews conducted throughout the
year. The reviews include assessments of business strategy, over-
all operating environment, including competitive position, financial
performance and key business risks.
Risk review and results
Economic risk capital review
Development of economic risk capital methodology
In 2014, we made the following enhancements to the position
risk methodology for risk management purposes: For fixed income
trading, we improved the aggregation of trading risks by align-
ing the time series’ lengths among developed and emerging
markets trading risks, and by using implicit correlations instead
of an assumed fixed correlation. We also made an enhancement
to the position risk dataset for risk management purposes: For
real estate structured assets, the dataset now includes funding
risk for off-balance sheet residential mortgage-backed securities
(RMBS) conduit positions and for fixed income trading, we have
enhanced the scope for default risk for the traded credit spread
portfolio to include credit default swaps (CDS).
Prior-period balances have been restated for methodology
changes in order to show meaningful trends. The total net impact
of 2014 methodology changes on position risk for the Group as of
December 31, 2013 was a decrease of CHF 679 million, or 5.6%.
For economic risk capital used for capital management pur-
poses, in addition to adopting the above position risk methodology
changes, we made the following enhancements:
p for operational risk, we implemented a revised internal qAMA
model to calculate the regulatory capital requirement for oper-
ational risk, and we updated insurance policy parameters in our
operational risk model; and
p for other risks, we increased our other risks charge to reflect a
recalibration of our economic risk capital model reserve com-
ponent to account for planned methodology changes. This
increase was marginally offset in the fourth quarter of 2014
when we removed minor risk types that were previously cap-
tured in the model reserve component. These risk types are
now captured in the position risk model and did not have an
impact on the overall position risk.
Prior-period balances have been restated for 2014 methodology
changes in order to show meaningful trends. The net impact of all
methodology changes on economic risk capital for the Group as
of December 31, 2013 was a net decrease of CHF 547 million, or
1.7%.

Group
Bank 1
end of
2014
2013
% change
2014
2013
% change
Available economic capital (CHF million)

BIS look-through CET1 capital (Basel III)
28,576
26,480
8
28,720
23,623
22
Economic adjustments 2
10,447
11,464
(9)
10,156
12,566
(19)
Available economic capital
39,023
37,944
3
38,876
36,189
7
Economic risk capital (CHF million)

Position risk (99.97% confidence level)
21,652
19,988
8
21,499
19,841
8
Operational risk
5,277
4,731
12
5,277
4,731
12
Other risks 3
6,266
7,012
(11)
4,428
4,922
(10)
33,195
31,731
5
31,204
29,494
6
Economic risk capital coverage ratio (%)

Economic risk capital coverage ratio 4
118
120
–
125
123
–
Prior-period balances have been restated for methodology changes in order to show meaningful trends.
1
The major difference between economic risk capital of the Group and the Bank relates to the risks within Neue Aargauer Bank AG, BANK-now AG and Corporate Center. These risks
include position risk, operational risk and other risks.
2
Includes primarily high-trigger capital instruments, adjustments to unrealized gains on owned real estate, reduced recognition of deferred tax assets and adjustments to treatment of pen-
sions. Economic adjustments are made to BIS look-through CET1 capital to enable comparison between economic risk capital and available economic capital under the Basel III framework.
3
Includes owned real estate risk, expense risk, pension risk, foreign exchange risk between available economic capital and economic risk capital, interest rate risk on treasury positions,
diversification benefits, the impact from deferred share-based compensation awards and an estimate for the impacts of certain planned methodology changes.
4
Ratio between available economic capital and economic risk capital.

Risk management
Available economic capital trends
As of the end of 2014, our available economic capital for the Group
was CHF 39.0 billion, up CHF 1.0 billion from the end of 2013.
BIS look-through CET1 capital increased CHF 2.1 billion, primar-
ily from net income of CHF 1.9 billion for the year and the foreign
exchange translation impact, partially offset by the expected cash
portion of the dividends for the year and the impact from move-
ments in own credit spreads. Economic adjustments decreased
CHF 1.1 billion, mainly due to the repurchase of the outstanding
7.875% perpetual series B subordinated tier 1 participation securi-
ties in the first quarter of 2014 and lower dividend accruals reflect-
ing the expected cash portion of the dividends.
Economic risk capital by division
in / end of
2014
2013
% change
Economic risk capital by division (CHF million)

9,853
9,445
4
Investment Banking
21,350
20,050
6
Corporate Center 1
2,012
2,256
(11)
Economic risk capital – Group 2
33,195
31,731
5
Economic risk capital – Bank 3
31,204
29,494
6
Average economic risk capital by division (CHF million)

9,551
9,792
(2)
Investment Banking
20,605
19,298
7
Corporate Center 1
2,135
2,260
(6)
Average economic risk capital – Group 4
32,272
31,330
3
Average economic risk capital – Bank 3
30,156
29,089
4
1
Includes primarily expense risk, diversification benefits from the divisions and foreign exchange risk between available economic capital and economic risk capital.
2
Includes a diversification benefit of CHF 20 million and CHF 20 million as of December 31, 2014 and 2013, respectively.
3
The major difference between economic risk capital of the Group and the Bank relates to the risks within Neue Aargauer Bank AG, BANK-now AG and Corporate Center. These risks
include position risk, operational risk and other risks.
4
Includes a diversification benefit of CHF 19 million and CHF 20 million as of December 31, 2014 and 2013, respectively.
Economic risk capital trends
Over the course of 2014, our economic risk capital increased 5%.
Excluding the US dollar translation impact, economic risk capi-
tal decreased 2%, mainly due to increased benefit from deferred
share-based compensation awards in other risks from both busi-
ness divisions, partially offset by higher operational risk.
For Private Banking Wealth Management, economic risk
capital increased 4%, mainly due to increased position risk in
equity trading investments and private banking corporate retail
lending, and higher operational risk. These increases were partially
offset by a reduction in other risks, primarily related to increased
benefit from deferred share-based compensation awards.
For Investment Banking, economic risk capital increased 6%.
Excluding the US dollar translation impact, economic risk capi-
tal decreased 3%, largely due to decreased position risk in fixed
income trading and emerging markets country event risk, and a
reduction in other risks, primarily related to increased benefit from
deferred share-based compensation awards. These decreases
were partially offset by increased position risk in international lend-
ing counterparty exposures and higher operational risk.
For Corporate Center, economic risk capital decreased 11%,
mainly due to a decrease in foreign exchange risk between avail-
able economic capital and economic risk capital.

148
Group position risk
end of
2014
2013
% change
Position risk (CHF million)

Fixed income trading 1
1,120
1,776
(37)
Equity trading investments
1,680
1,614
4
Private banking corporate retail lending
2,505
2,350
7
International lending counterparty exposures
5,979
4,957
21
Emerging markets country event risk
1,141
1,412
(19)
Real estate structured assets 2
2,551
2,037
25
Simple sum across risk categories
14,976
14,146
6
Diversification benefit 3
(2,558)
(2,782)
(8)
Position risk (99% confidence level for risk management purposes)
12,418
11,364
9

Position risk (99.97% confidence level for capital management purposes)
21,652
19,988
8
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
Compared to the end of 2013, position risk for risk manage-
ment purposes increased 9%. Excluding the US dollar translation
impact, position risk was stable. Position risk increased mainly
due to new loan commitments and increased counterparty risk in
Investment Banking for international lending counterparty expo-
sures and higher exposures in real estate structured assets,
mainly related to an increase in commercial mortgage-backed
securities (CMBS). These increases were offset mainly by reduced
credit spread and interest rate exposures in fixed income trading
and lower exposures in Eastern Europe in emerging markets coun-
try event risk.
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 portfolios they were designated to
hedge. Due to the varying nature and structure of hedges, these
gains or losses may not wholly offset the losses or gains on the
portfolios.
Market risk review
Trading book
Development of trading book risks
The tables entitled “One-day, 98% risk management VaR” show
our trading-related market risk exposure, as measured by one-
day, 98% risk management qVaR in Swiss francs and US dollars.
As we measure trading book VaR for internal risk management
purposes using the US dollar as the base currency, the VaR fig-
ures were translated into Swiss francs using daily foreign exchange
translation rates. VaR estimates are computed separately for each
risk type and for the whole portfolio using the historical simulation
methodology. The different risk types are grouped into five catego-
ries including interest rate, credit spread, foreign exchange, com-
modities and equity.
We regularly review our VaR model to ensure that it remains
appropriate given evolving market conditions and the composition
of our trading portfolio. In 2014, we updated our VaR model to
capture certain higher order risks in equity, interest rate and infla-
tion-linked derivatives. These higher order risks, which included
volatility skew, were previously captured in our RNIV framework.
In addition, we increased the granularity of how we capture the
risk between recently issued government bonds (on-the-run) and
government bonds with similar maturities that were issued earlier
(off-the-run) to cover risk by country rather than by region. The
cumulative impact of these updates on our VaR measures was
immaterial and prior periods have not been restated.

Risk management
One-day, 98% risk management VaR (CHF)

Diversi-

Interest
Credit
Foreign

fication

in / end of
rate
spread
exchange
Commodity
Equity
benefit
Total
2014 (CHF million)

Average
12
32
9
2
18
(31)
42
Minimum
7
28
5
0
13
– 1
35
Maximum
17
39
17
4
25
– 1
56
End of period
9
39
7
1
20
(29)
47
2013 (CHF million)

Average
18
35
9
2
16
(40)
40
Minimum
8
30
3
1
11
– 1
33
Maximum
45
41
24
4
36
– 1
55
End of period
10
32
6
3
24
(30)
45
2012 (CHF million)

Average
29
47
13
3
22
(47)
67
Minimum
15
36
3
1
14
– 1
34
Maximum
43
67
34
7
35
– 1
104
End of period
27
36
12
2
17
(54)
40
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 (USD)

Diversi-

Interest
Credit
Foreign

fication

in / end of
rate
spread
exchange
Commodity
Equity
benefit
Total
2014 (USD million)

Average
13
35
10
2
20
(34)
46
Minimum
7
31
6
0
15
– 1
39
Maximum
19
41
19
5
27
– 1
59
End of period
9
40
7
1
20
(30)
47
2013 (USD million)

Average
19
38
10
2
17
(43)
43
Minimum
9
32
3
1
12
– 1
34
Maximum
49
44
25
4
38
– 1
58
End of period
11
36
7
3
27
(33)
51
2012 (USD million)

Average
31
51
14
3
23
(63)
59
Minimum
16
39
3
1
15
– 1
36
Maximum
47
73
38
8
37
– 1
88
End of period
29
39
13
2
18
(57)
44
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 in 2014 increased 7% from
2013 to USD 46 million. The increase was primarily driven by
increased equity exposures, mainly in US and Asian equity deriva-
tives and reduced diversification benefit, partially offset by reduced
credit spread and interest rate exposures.
Period-end risk management VaR as of December 31, 2014
decreased 8% to USD 47 million compared to December 31,
2013, mainly reflecting decreased equity exposures.
In the 12-month periods ending December 31, 2014, 2013
and 2012, we had no backtesting exceptions in our regulatory VaR
model. Since there were fewer than five backtesting exceptions in
the rolling 12-month periods ending December 31, 2014, 2013

150
Daily risk management VaR
j One-day risk management VaR (98%)
CHF million
1Q14 2Q14 3Q14 4Q14
0
15
30
45
60
Actual daily trading revenues
Excludes Neue Aargauer Bank.
Trading revenues do not include valuation adjustments associated with counterparty and own credit exposures.
0
25
50
75
100
125
(100)
(100)–(75)
(75)–(50)
(50)–(25)
(25)–0
0–25
25–50
50–75
75–100
100–125
125–150
Days
150
(100)
(100)–(75)
(75)–(50)
(50)–(25)
(25)–0
0–25
25–50
50–75
75–100
100–125
125–150
150
(100)
(100)–(75)
(75)–(50)
(50)–(25)
(25)–0
0–25
25–50
50–75
75–100
100–125
125–150
150
CHF
million
2014 2013 2012
120 100 00 0 0 0 00
120
85
122
73
22
39
33
1 00
3
0 0 1
43
105
28
75
1
44 3
16
and 2012, in line with qBIS industry guidelines, the VaR model is
deemed to be statistically valid.
uses a multiplier to impose an increase in market risk capital
for every regulatory VaR exception over four in the prior rolling
revenues.
u Refer to “Regulatory capital framework” in Capital 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 2014 with those for 2013 and
2012. The dispersion of trading revenues indicates the day-to-day
volatility in our trading activities. In 2014, we had four trading loss
days, each of them with a trading loss not exceeding CHF 25 mil-
lion, compared to one trading loss day in 2013 with a trading loss
not exceeding CHF 25 million.

Risk management
Banking book
Development of banking book interest rate risks
Interest rate risk on banking book positions is measured by esti-
mating the impact resulting from a one basis point parallel increase
in yield curves on the fair value of interest rate-sensitive banking
book positions. The impact of a one basis point parallel increase
in yield curves on the fair value of interest rate-sensitive banking
book positions would have been an increase of CHF 4.6 million
as of December 31, 2014, compared to an increase of CHF 8.5
million as of December 31, 2013. The decrease from 2013 was
mainly due to activities related to the management of capital
instruments. The decrease reflected new hedges that more than
offset the impact of the related issuance of a new tier 1 capital
instrument, and the repurchase of the outstanding 7.875% per-
petual series B subordinated tier 1 participation securities follow-
ing a tender offer as well as the impact of market movements on
the valuation of these instruments. The decrease also reflected an
overall risk reduction in Treasury.
One basis point parallel increase in yield curves by currency – banking book positions
end of
CHF
USD
EUR
GBP
Other
Total
2014 (CHF million)

Fair value impact of a one basis point parallel increase in yield curves
(2.4)
4.6
1.9
(0.1)
0.6
4.6
2013 (CHF million)

Fair value impact of a one basis point parallel increase in yield curves
(1.1)
7.0
2.2
0.0
0.4
8.5
Interest rate risk on banking book positions is also assessed using
other measures including the potential value change resulting from
a significant change in yield curves. The following table shows the
impact of immediate 100 basis point and 200 basis point moves
in the yield curves (as interest rates are currently very low, the
downward changes are capped to ensure that the resulting inter-
est rates remain non-negative).
Interest rate sensitivity – banking book positions
end of
CHF
USD
EUR
GBP
Other
Total
2014 (CHF million)

Increase(+)/decrease(–) in interest rates

   +200 basis points
(431)
906
380
(181)
112
786
   +100 basis points
(229)
458
192
(49)
56
428
   –100 basis points
275
(439)
(187)
(30)
(38)
(419)
   –200 basis points
373
(821)
(235)
(143)
(69)
(895)
2013 (CHF million)

Increase(+)/decrease(–) in interest rates

   +200 basis points
(169)
1,350
428
(100)
80
1,589
   +100 basis points
(100)
687
215
(24)
40
818
   –100 basis points
225
(690)
(155)
(22)
(32)
(674)
   –200 basis points
289
(1,150)
(160)
(88)
(63)
(1,172)
As of December 31, 2014, the fair value impact of an adverse 200
basis point move in yield curves was a loss of CHF 0.9 billion com-
pared to a loss of CHF 1.2 billion as of December 31, 2013. The
monthly analysis of the potential impact resulting from a significant
change in yield curves indicated that as of the end of 2014 and
2013, the fair value impact of an adverse 200 basis point move in
yield curves and adverse interest rate moves, calibrated to a one-
year holding period at a 99% confidence level in relation to the
total eligible regulatory capital, was significantly below the 20%
threshold used by regulators to identify banks that potentially run
excessive levels of interest rate risk in the banking book.
Development of banking book equity risks
Our equity portfolios of the banking book include positions in pri-
vate equity, hedge funds, strategic investments and other instru-
ments. These positions may not be strongly correlated with general
equity markets. Equity risk on banking book positions is measured
using sensitivity analysis that estimates the potential change in
value resulting from a 10% decline in the equity markets of devel-
oped nations and a 20% decline in the equity markets of emerging
market nations. The estimated impact of this scenario would have
been a decrease of CHF 498 million in the value of the banking
book portfolio as of December 31, 2014, compared to a decrease
of CHF 474 million as of December 31, 2013.

152
Development of banking book commodity risks
Our commodity portfolios of the banking book include mainly pre-
cious metals such as gold, platinum and silver. Commodity risk
on banking book positions is measured using sensitivity analysis
that estimates the potential change in value resulting from a 20%
weakening in commodity prices. The estimated impact of this sce-
nario would have been a decrease of CHF 0.2 million in the value
of the banking book portfolio as of December 31, 2014 and 2013.
Credit and debit valuation adjustments
VaR excludes the impact of changes in both counterparty and
our own credit spreads on derivative products. As of Decem-
ber 31, 2014, the estimated sensitivity implies that a one basis
point increase in credit spreads, both counterparty and our own,
would have resulted in a CHF 0.2 million gain on the overall
derivatives position in Investment Banking. In addition, a one basis
point increase in our own credit spread on our fair valued struc-
tured notes portfolio (including the impact of hedges) would have
resulted in a CHF 8.9 million gain as of December 31, 2014.
Credit risk review
Credit risk overview
All transactions that are exposed to potential losses due to a
counterparty failing to meet an obligation are subject to credit
risk exposure measurement and management. The following
table represents credit risk from loans, irrevocable loan commit-
ments 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.
Credit risk
end of
2014
2013
% change
Credit risk (CHF million)

Balance sheet

Gross loans
273,421
248,014
10
of which reported at fair value
22,913
19,457
18
Loans held-for-sale
25,911
18,914
37
Traded loans
10,415
6,397
63
Derivative instruments 1
39,551
33,665
17
Total balance sheet
349,298
306,990
14
Off-balance sheet

Irrevocable loan commitments 2
120,290
96,990
24
Credit guarantees and similar instruments
4,086
4,214 3
(3)
Irrevocable commitments under documentary credits
4,734
5,512
(14)
Total off-balance sheet
129,110
106,716
21
Total credit risk
478,408
413,706
16
Before risk mitigation, for example, collateral and credit hedges.
1
Positive replacement value after netting agreements.
2
Irrevocable loan commitments do not include unused credit limits which are revocable at the Group’s sole discretion upon notice to the client.
3
Prior period has been corrected.
As of December 31, 2014 and 2013, loans held-for-sale included
CHF 343 million and CHF 308 million, respectively, of US subprime
residential mortgages from consolidated variable interest entities
(VIE) and CHF 1,282 million and CHF 1,240 million, respectively,
of low grade European residential mortgages from consolidated
VIEs. Traded loans included US subprime residential mortgages of
CHF 1,299 million and CHF 769 million as of December 31, 2014
and 2013, respectively.
Loans and irrevocable loan commitments
The following table provides an overview of loans and irrevocable
loan commitments by division.

Risk management
Loans and irrevocable loan commitments
end of
2014
2013
% change
Loans and irrevocable loan commitments (CHF million)

Gross loans
273,421
248,014
10
   of which Private Banking Wealth Management
238,843
216,499
10
   of which Investment Banking
34,548
31,490
10
Irrevocable loan commitments
120,290
96,990
24
Total loans and irrevocable loan commitments
393,711
345,004
14
   of which Private Banking Wealth Management
250,630
226,615
11
   of which Investment Banking
143,051
118,365
21
The Private Banking Wealth Management portfolio consists pri-
marily of mortgages and loans collateralized by marketable securi-
ties that can be readily liquidated. In Investment Banking, we man-
age credit exposures primarily with credit hedges and monetizable
collateral. Credit hedges represent the notional exposure that has
been transferred to other market counterparties, generally through
the use of CDS and credit insurance contracts.
The following tables illustrate the effects of risk mitigation
through cash collateral, marketable securities and credit hedges on
a combined exposure of loans and irrevocable loan commitments.
Loans and irrevocable loan commitments – Private Banking Wealth Management
end of
2014
2013

Gross
Cash and
Net
Gross
Cash and
Net
Internal ratings
exposure
securities 1
exposure
exposure
securities 1
exposure
Risk mitigation (CHF million)

Investment grade

Ratings AAA to BBB
187,034
(54,595)
132,439
165,711
(42,984)
122,727
Non-investment grade

Ratings BB to C
62,537
(6,326)
56,211
59,750
(4,775)
54,975
Rating D
1,059
(73)
986
1,154
(137)
1,017
250,630
(60,994)
189,636 2
226,615
(47,896)
178,719 2
Includes undrawn irrevocable credit facilities. Does not include unused credit limits which are revocable at our sole discretion upon notice to the client. Prior period has been adjusted to the
current presentation.
1
Cash collateral and marketable securities.
2
In addition, we had a synthetic collateralized loan portfolio, the Clock Finance 2013 transaction, which effectively transferred the mezzanine tranche credit risk in excess of 1% up to a
maximum of 6% on a portfolio of originated loans of CHF 5.0 billion at closing within Corporate Institutional Clients to capital market investors.
Loans and irrevocable loan commitments – Investment Banking
end of
2014
2013

Gross
Risk
Net
Gross
Risk
Net
Internal ratings
exposure
mitigation 1
exposure
exposure
mitigation 1
exposure
Risk mitigation (CHF million)

Investment grade

Ratings AAA to BBB
87,397
(15,527)
71,870
81,761
(14,948)
66,813

Ratings BB to C
54,926
(12,509)
42,417
35,993
(6,516)
29,477
Rating D
728
(166)
562
611
(79)
532
143,051
(28,202)
114,849
118,365
(21,543)
96,822
Includes undrawn irrevocable credit facilities. Prior period has been adjusted to the current presentation.
1
Credit hedges, cash collateral and marketable securities.

154
Loans
The following table provides an overview of our loans by loan
classes, impaired loans, the related allowance for loan losses and
selected loan metrics by business division.
Loans

Private Banking

Wealth Management
Investment Banking
Credit Suisse 1
end of
2014
2013
2014
2013
2014
2013
Loans (CHF million)

Mortgages
98,802
94,978
0
0
98,802
94,978
Loans collateralized by securities
39,818
31,565
0
0
39,818
31,565
Consumer finance
4,094
5,672
229
266
4,323
5,938
Consumer
142,714
132,215
229
266
142,943
132,481
Real estate
27,261
26,557
1,937
755
29,198
27,312
Commercial and industrial loans
60,435
48,953
14,581
14,356
75,046
63,334
Financial institutions
7,271
7,538
15,072
14,302
22,343
21,840
Governments and public institutions
1,162
1,236
2,729
1,811
3,891
3,047
Corporate institutional
96,129 2
84,284 2
34,319
31,224
130,478
115,533
Gross loans
238,843
216,499
34,548
31,490
273,421
248,014
243
226
22,670
19,231
22,913
19,457
Net (unearned income) / deferred expenses
(93)
(71)
(19)
(20)
(112)
(91)
Allowance for loan losses 3
(626)
(715)
(127)
(151)
(758)
(869)
Net loans
238,124
215,713
34,402
31,319
272,551
247,054
Impaired loans (CHF million)

Non-performing loans
568
608
180
251
753
862
Non-interest-earning loans
279
280
0
1
279
281
Total non-performing and non-interest-earning loans
847
888
180
252
1,032
1,143
Restructured loans
168
6
3
0
171
6
Potential problem loans
152
340
35
0
187
340
Total other impaired loans
320
346
38
0
358
346
Gross impaired loans 3
1,167
1,234
218
252
1,390
1,489
   of which loans with a specific allowance
1,080
1,165
212
244
1,297
1,412
   of which loans without a specific allowance
87 69
6
8
93
77
Allowance for loan losses (CHF million)

Balance at beginning of period 3
715
785
151
137
869
922
Changes in scope of consolidation
0
(1)
0
0
0
(1)
Net movements recognized in statements of operations
123
152
20
11
145
166
Gross write-offs
(268)
(278)
(81)
(8)
(349)
(286)
Recoveries
33
47
8
7
41
54
Net write-offs
(235)
(231)
(73)
(1)
(308)
(232)
Provisions for interest
5
13
15
13
20
26
Foreign currency translation impact and other adjustments, net
18
(3)
14
(9)
32
(12)
Balance at end of period 3
626
715
127
151
758
869
   of which individually evaluated for impairment
454
537
81
114
540
654
   of which collectively evaluated for impairment
172
178
46
37
218
215
Loan metrics (%)

Total non-performing and non-interest-earning loans / Gross loans 4
0.4
0.4
1.5
2.1
0.4
0.5
Gross impaired loans / Gross loans 4
0.5
0.6
1.8
2.1
0.6
0.7
Allowance for loan losses / Total non-performing and non-interest-earning loans 3
73.9
80.5
70.6
59.9
73.4
76.0
Allowance for loan losses / Gross impaired loans 3
53.6
57.9
58.3
59.9
54.5
58.4
1
Includes Corporate Center, in addition to Private Banking Wealth Management 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 78,962 million
and CHF 67,522 million as of December 31, 2014 and 2013, respectively.
3
Impaired loans and allowance for loan losses are only based on loans which are not carried at fair value.
4
Excludes loans carried at fair value.

Risk management
Compared to the end of 2013, gross loans increased 10% to
CHF 273.4 billion. An increase in Private Banking Wealth Man-
agement of 10% to CHF 238.8 billion was primarily due to an
increase in commercial and industrial loans, higher loans collater-
alized by securities, higher residential mortgages and the US dol-
lar translation impact, partially offset by a decrease in consumer
finance. In Investment Banking, an increase of 10% to CHF 34.5
billion was related to the US dollar translation impact, higher loans
to the real estate sector and higher loans to governments and
public institutions, partially offset by a decrease in commercial and
industrial loans and lower loans to financial institutions.
u Refer to “Note 18 – Loans, allowance for loan losses and credit quality” in V –
Consolidated financial statements – Credit Suisse Group.
Loss given default
The Private Banking Wealth Management LGD measurement
takes into account collateral pledged against the exposure and
guarantees received, with the exposure adjusted for risk mitiga-
tion. In Investment Banking, the LGD measurement is primar-
ily determined by the seniority ranking of the exposure, with the
exposure adjusted for risk mitigation and guarantees received.
The following tables present our loans, net of risk mitigation,
across LGD buckets for Private Banking Wealth Management
and Investment Banking.
Loans – Private Banking Wealth Management
end of 2014

Loss given default buckets

Funded
Funded

gross
net

Internal ratings
exposure
exposure
0–10%
11–20%
21–40%
41–60%
61–80%
81–100%
Loss given default (CHF million)

Investment grade

Ratings AAA to BBB
180,402
126,673
19,093
66,039
32,334
7,518
1,452
237

Ratings BB to C
57,385
51,162
10,677
16,531
15,945
6,084
1,270
655
Rating D
1,056
984
56
207
324
240
29
128
Total loans
238,843
178,819
29,826
82,777
48,603
13,842
2,751
1,020
As of December 31, 2014, 96% of the aggregate Swiss residen-
tial mortgage loan portfolio of CHF 99.6 billion had an LTV ratio
equal or lower than 80%. As of December 31, 2013, 97% of the
corresponding loan portfolio of CHF 96.6 billion had an LTV ratio
equal or lower than 80%. For the Swiss residential mortgage loans
originated in 2014 and 2013, the average LTV ratio was equal or
lower than 80% at origination. Our LTV ratios are based on the
most recent appraised value of the collateral.
Loans – Investment Banking
end of 2014

Loss given default buckets

Funded
Funded

gross
net

Internal ratings
exposure
exposure
0–10%
11–20%
21–40%
41–60%
61–80%
81–100%
Loss given default (CHF million)

Investment grade

Ratings AAA to BBB
12,511
8,730
1,516
189
2,182
4,240
241
362

Ratings BB to C
21,324
12,355
1,079
694
5,383
5,023
97
79
Rating D
713
547
67
0
233
204
43
0
Total loans
34,548
21,632
2,662
883
7,798
9,467
381
441
Impaired loans and allowance for loan losses
Gross impaired loans decreased 7% to CHF 1.4 billion as of the
end of 2014. In Private Banking Wealth Management, gross
impaired loans decreased CHF 67 million to CHF 1,167 million
driven by write-offs and repayments. Higher restructured loans
reflected the restructuring and subsequent reclassification of
potential problem and non-performing loans. In Investment Bank-
ing, gross impaired loans decreased CHF 34 million, mainly related
to write-offs and repayments of non-performing loans, partially
offset by new potential problem loans.
u Refer to “Impaired loans” in V – Consolidated financial statements – Credit
Suisse Group – Note 18 – Loans, allowance for loan losses and credit quality for
information on categories of impaired loans.

156
The following tables provide an overview of changes in impaired
loans and related allowance for loan losses by loan portfolio seg-
ment for 2014.
Gross impaired loans by loan portfolio segment

Corporate

2014
Consumer
institutional
Total
Gross impaired loans (CHF million)

569
920
1,489
New impaired loans
359
331
690
Increase in existing impaired loans
32
69
101
Reclassifications to performing loans
(93)
(4)
(97)
Repayments 1
(170)
(224)
(394)
Liquidation of collateral, insurance or guarantee payments
(37)
(85)
(122)
Sales 2
(11)
(3)
(14)
Write-offs
(81)
(238)
(319)
14
42
56
582
808
1,390
1
Full or partial principal repayments.
2
Includes transfers to loans held-for-sale for intended sales of held-to-maturity loans.
Allowance for loan losses by loan portfolio segment

Corporate

2014
Consumer
institutional
Total
Allowance for loan losses (CHF million)

267
602
869
Net movements recognized in statements of operations
66
79
145
Gross write-offs
(108)
(241)
(349)
Recoveries
17
24
41
Net write-offs
(91)
(217)
(308)
Provisions for interest
1
19
20
8
24
32
251
507
758
of which individually evaluated for impairment
202
338
540
of which collectively evaluated for impairment
49
169
218
Net provision for credit losses charged to the consolidated state-
ments of operations in 2014 was CHF 186 million, compared to
a net provision of CHF 167 million in 2013. In Private Banking
Wealth Management, the net provision for credit losses in 2014
was CHF 123 million, compared to CHF 152 million in 2013, and
in Investment Banking, the net provision for credit losses in 2014
was CHF 61 million, compared to a net provision of CHF 13 mil-
lion in 2013.
Derivative instruments
We enter into derivative contracts in the normal course of business
for market making, positioning and arbitrage purposes, as well as
for our own risk management needs, including mitigation of inter-
est rate, foreign exchange and credit risk.
Derivatives are either privately negotiated OTC contracts or
standard contracts transacted through regulated exchanges.
The most frequently used derivative products include interest
rate, cross-currency swaps and CDS, interest rate and foreign
exchange options, foreign exchange forward contracts, and for-
eign exchange and interest rate futures.
The replacement values of derivative instruments correspond
to their fair values at the dates of the consolidated balance sheets
and arise from transactions for the account of customers and for
our own account. Positive replacement values constitute an asset,
while qnegative replacement values constitute a liability. Fair value
does not indicate future gains or losses, but rather premiums paid
or received for a derivative instrument at inception, if applicable,
and unrealized gains and losses from marking to market all deriva-
tives at a particular point in time. The fair values of derivatives

Risk management
are determined using various methodologies, primarily observable
market prices where available and, in their absence, observable
market parameters for instruments with similar characteristics and
maturities, net present value analysis or other pricing models as
appropriate.
The following table illustrates how credit risk on derivatives
receivables is reduced by the use of legally enforceable netting
agreements and collateral agreements. Netting agreements allow
us to net balances from derivative assets and liabilities transacted
with the same counterparty when the netting agreements are
legally enforceable. Replacement values are disclosed net of such
agreements in the consolidated balance sheets. Collateral agree-
ments are entered into with certain counterparties based upon the
nature of the counterparty and/or the transaction and require the
placement of cash or securities with us.
Derivative instruments by maturity
end of
2014
2013

Positive

Positive

Less

More
replace-
Less

More
replace-

than
1 to 5
than
ment
than
1 to 5
than
ment
due within
1 year
years
5 years
value
1 year
years
5 years
value
Derivative instruments (CHF billion)

Interest rate products
30.1
132.0
310.6
472.7
28.2
162.2
258.8
449.2
Foreign exchange products
52.6
24.8
12.0
89.4
32.2
18.9
10.4
61.5
Equity/index-related products
9.2
6.7
1.8
17.7
8.1
8.0
2.2
18.3
Credit derivatives
2.3
21.3
3.4
27.0
1.6
21.1
4.1
26.8
Other products 1
4.0
3.6
1.7
9.3
1.9
1.8
1.0
4.7
OTC derivative instruments
98.2
188.4
329.5
616.1
72.0
212.0
276.5
560.5
Exchange-traded derivative instruments

13.4

18.1
Netting agreements 2

(590.0)

(544.9)
Total derivative instruments

39.5

33.7
of which recorded in trading assets

38.0

31.6
of which recorded in other assets

1.5

2.1
1
Primarily precious metals, commodity, energy and emission products.
2
Taking into account legally enforceable netting agreements.
Derivative transactions exposed to credit risk are subject to a
credit request and approval process, ongoing credit and counter-
party monitoring and a credit quality review process. The following
table represents the rating split of our credit exposure from deriva-
tive instruments.
Derivative instruments by counterparty credit rating
end of
2014
2013
Derivative instruments (CHF billion)
AAA
2.5
1.1
AA
9.1
8.5
A
9.2
6.6
BBB
11.8
9.9
BB or lower
5.1
4.6
OTC derivative instruments
37.7
30.7
Exchange-traded derivative instruments 1
1.8
3.0
Total derivative instruments 1
39.5
33.7
1
Taking into account legally enforceable netting agreements.
Derivative instruments by maturity and by counterparty credit rat-
ing for the Bank are not materially different, neither in absolute
amounts nor in terms of movements, from the information for the
Group presented above.
Derivative instruments are categorized as exposures from trad-
ing activities (trading) and those qualifying for hedge accounting
(hedging). Trading includes activities relating to market making,
positioning and arbitrage. It also includes economic hedges where
the Group enters into derivative contracts for its own risk manage-
ment purposes, but where the contracts do not qualify for hedge
accounting under US GAAP. Hedging includes contracts that
qualify for hedge accounting under US GAAP, such as fair value
hedges, cash flow hedges and net investment hedges.
u Refer to “Note 26 – Offsetting of financial assets and financial liabilities” in V
– Consolidated financial statements – Credit Suisse Group for further information
on offsetting of derivatives.
u Refer to “Note 31 – Derivatives and hedging activities” in V – Consolidated
financial statements – Credit Suisse Group for further information on derivatives,
including an overview of derivatives by products categorized for trading and hedg-
ing purposes.
Forwards and futures
We enter into forward purchase and sale contracts for mortgage-
backed securities, foreign currencies and commitments to buy or
sell commercial and residential mortgages. In addition, we enter

158
into futures contracts on equity-based indices and other financial
instruments, as well as options on futures contracts. These con-
tracts are typically entered into to meet the needs of customers,
for trading and for hedging purposes.
On forward contracts, we are exposed to counterparty credit
risk. To mitigate this credit risk, we limit transactions by counter-
party, regularly review credit limits and adhere to internally estab-
lished credit extension policies.
For futures contracts and options on futures contracts, the
change in the market value is settled with a clearing broker in cash
each day. As a result, our credit risk with the clearing broker is lim-
ited to the net positive change in the market value for a single day.
Swaps
Our swap agreements consist primarily of interest rate swaps,
CDS, currency and equity swaps. We enter into swap agreements
for trading and risk management purposes. Interest rate swaps
are contractual agreements to exchange interest rate payments
based on agreed upon notional amounts and maturities. CDS are
contractual agreements in which the buyer of the swap pays a
periodic fee in return for a contingent payment by the seller of
the swap following a credit event of a reference entity. A credit
event is commonly defined as bankruptcy, insolvency, receiver-
ship, material adverse restructuring of debt, or failure to meet
payment obligations when due. Currency swaps are contractual
agreements to exchange payments in different currencies based
on agreed notional amounts and currency pairs. Equity swaps are
contractual agreements to receive the appreciation or depreciation
in value based on a specific strike price on an equity instrument
in exchange for paying another rate, which is usually based on an
index or interest rate movements.
Options
We write options specifically designed to meet the needs of cus-
tomers and for trading purposes. These written options do not
expose us to the credit risk of the customer because, if exercised,
we and not our counterparty are obligated to perform. At the
beginning of the contract period, we receive a cash premium. Dur-
ing the contract period, we bear the risk of unfavorable changes
in the value of the financial instruments underlying the options. To
manage this market risk, we purchase or sell cash or derivative
financial instruments. Such purchases and sales may include debt
and equity securities, forward and futures contracts, swaps and
options.
We also purchase options to meet customer needs, for trading
purposes and for hedging purposes. For purchased options, we
obtain the right to buy or sell the underlying instrument at a fixed
price on or before a specified date. During the contract period, our
risk is limited to the premium paid. The underlying instruments for
these options typically include fixed income and equity securities,
foreign currencies and interest rate instruments or indices. Coun-
terparties to these option contracts are regularly reviewed in order
to assess creditworthiness.
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 mea-
sure 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.
Monitoring of selected European credit risk exposures
Our credit risk exposure to these European countries is managed
as part of our overall risk management process. The Group makes
use of country limits and performs scenario analyses on a regular
basis, which include analyses of our indirect sovereign credit risk
exposures from our exposures to selected European financial insti-
tutions. 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 under-
pinning our qOTC derivative and qreverse repurchase agreement
exposures through monthly reporting. We also monitor the impact
of sovereign rating downgrades on collateral eligibility. Strict limits
on sovereign collateral from qG7 and non-G7 countries are moni-
tored monthly. Similar disclosure is part of our regular risk report-
ing to regulators.
As part of our global scenario framework, the counterparty
credit risk stress testing framework measures counterparty expo-
sure under scenarios calibrated to the 99th percentile for the worst
one month and one year moves observed in the available history,
as well as the absolutely worst weekly move observed in the same
dataset. The scenario results are aggregated at the counterparty
level for all our counterparties, including all European countries to
which we have exposure. Furthermore, counterparty default sce-
narios are run where specific entities are set to default. In one of
these scenarios, a European sovereign default is investigated. This
scenario determines the maximum exposure we have against this
country in case of its default and serves to identify those coun-
terparties where exposure will rise substantially as a result of the
modeled country defaulting.
The scenario framework also considers a range of other severe
scenarios, including a specific eurozone crisis scenario which
assumes the default of selected European countries, currently
modeled to include Greece, Ireland, Italy, Portugal and Spain. It is
assumed that the sovereigns, financial institutions and corporates
within these countries default, with a 100% loss of sovereign and
financial institutions exposures and a 0% to 100% loss of corpo-
rates depending on their credit ratings. As part of this scenario,
we additionally assume a severe market sell-off involving an equity
market crash, widening credit spreads, a rally in the price of gold
and a devaluation of the euro. In addition, the eurozone crisis sce-
nario assumes the default of a small number of our market coun-
terparties that we believe would be severely affected by a default
across the selected European countries. These counterparties are

Risk management
assumed to default as we believe that they would be the most
affected institutions because of their direct presence in the rel-
evant countries and their direct exposures. Through these pro-
cesses, revaluation and redenomination risks on our exposures are
considered on a regular basis by our risk management function.
Presentation of selected European credit risk exposures
The basis for the presentation of the country exposure is our inter-
nal risk domicile view. The risk domicile view is based on the domi-
cile of the legal counterparty, i.e., it may include exposure to a
legal entity domiciled in the reported country even if its parent is
located outside of the country.
The credit risk exposure in the table is presented on a risk-
based view before deduction of any related allowance for loan
losses. We present our credit risk exposure and related qrisk miti-
gation for the following distinct categories:
p Gross credit risk exposure includes the principal amount of
loans drawn, letters of credit issued and undrawn portions of
committed facilities, the q positive replacement value (PRV)
of derivative instruments after consideration of legally enforce-
able qnetting 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.
p Risk mitigation includes q credit default swaps (CDS) and
other hedges, at their net notional amount, guarantees, insur-
ance and collateral (primarily cash, securities and, to a lesser
extent, real estate, mainly for Private Banking Wealth Man-
agement 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.
p Net credit risk exposure represents gross credit risk exposure
net of risk mitigation.
p Inventory represents the long inventory positions in trading and
non-trading physical debt and synthetic positions, each at mar-
ket value, all netted at issuer level. Physical debt is non-deriv-
ative debt positions (e.g., bonds), and synthetic positions are
created through OTC contracts (e.g., CDS purchased and/or
sold and qtotal return swaps).
CDS presented in the risk mitigation column are purchased as a
direct hedge to our OTC exposure and the risk mitigation impact
is considered to be the notional amount of the contract for risk
purposes, with the mark-to-market fair value of CDS risk-man-
aged against the protection provider. Net notional amounts of CDS
reflect the notional amount of CDS protection purchased less the
notional amount of CDS protection sold and are based on the
origin of the CDS reference credit, rather than that of the CDS
counterparty. CDS included in the inventory column represent con-
tracts recorded in our trading books that are hedging the credit risk
of the instruments included in the inventory column and are dis-
closed on the same basis as the value of the fixed income instru-
ment they are hedging.
We do not have any tranched CDS positions on these Euro-
pean countries and only an insignificant amount of indexed credit
derivatives is included in inventory.
The credit risk of CDS contracts themselves, i.e., the risk that
the CDS counterparty will not perform in the event of a default, is
managed separately from the credit risk of the reference credit. To
mitigate such credit risk, all CDS contracts are collateralized and
executed with counterparties with whom we have an enforceable
International Swaps and Derivatives Association (ISDA) master
agreement that provides for daily margining.
Development of selected European credit risk exposures
On a gross basis, before taking into account risk mitigation, our
risk-based sovereign credit risk exposure to Cyprus, Croatia,
Greece, Ireland, Italy, Portugal and Spain as of December 31,
2014 was EUR 4.7 billion, up from EUR 4.3 billion as of Decem-
ber 31, 2013. Our net exposure to these sovereigns was EUR 0.5
billion, down from EUR 0.8 billion as of December 31, 2013. Our
non-sovereign risk-based credit risk exposure in these countries as
of December 31, 2014 included net exposure to financial institu-
tions of EUR 2.9 billion and to corporates and other counterparties
of EUR 1.2 billion, compared to EUR 2.3 billion and EUR 1.9 bil-
lion, respectively, as of December 31, 2013. A significant majority
of the purchased credit protection is transacted with banks outside
of the disclosed countries. For credit protection purchased from
banks in the disclosed countries, such credit risk is reflected in the
gross and net exposure to each respective country.
Sovereign debt rating developments
From year-end 2013 through February 28, 2015, the sovereign
debt ratings of the countries listed in the table changed as fol-
lows: Standard Poor’s lowered Croatia’s rating from BB+ to BB,
increased Cyprus’ rating from B– to B+, increased Ireland’s rating
from BBB+ to A, lowered Italy’s rating from BBB to BBB–, and
increased Spain’s rating from BBB– to BBB. Fitch lowered Croa-
tia’s rating from BB+ to BB, increased Greece’s rating from B– to
B, increased Ireland’s rating from BBB+ to A–, and increased
Spain’s rating from BBB to BBB+. Moody’s increased Cyprus’
rating from Caa3 to B3, increased Greece’s rating from Caa3
to Caa1, increased Ireland’s rating from Ba1 to Baa1, increased
Portugal’s rating from Ba3 to Ba1, and increased Spain’s rating
from Baa3 to Baa2. The rating changes did not have a signifi-
cant impact on the Group’s financial position, result of operations,
liquidity or capital resources.

160
Selected European credit risk exposures

Gross

Net

Total

credit risk

credit risk

credit risk

exposure
Risk mitigation
exposure
Inventory 2

exposure

Net

synthetic

December 31, 2014

CDS
Other 1

inventory 3
Gross
Net
Croatia (EUR billion)
Sovereign
0.5
0.0
0.4
0.1
0.0
(0.1)
0.5
0.1
Total
0.5
0.0
0.4
0.1
0.0
(0.1)
0.5
0.1
Cyprus (EUR billion)
Corporates other
0.8
0.0
0.8
0.0
0.0
0.0
0.8
0.0
Total
0.8
0.0
0.8
0.0
0.0
0.0
0.8
0.0
Greece (EUR billion)
0.1
0.0
0.1
0.0
0.0
0.0
0.1
0.0
Corporates other
0.7
0.0
0.7
0.0
0.0
0.0
0.7
0.0
Total
0.8
0.0
0.8
0.0
0.0
0.0
0.8
0.0
Ireland (EUR billion)
1.5
0.0
0.5
1.0
0.2
0.0
1.7
1.2
Corporates other
1.0
0.1
0.8
0.1
0.0
(0.1)
1.0
0.1
Total
2.5
0.1
1.3
1.1
0.2
(0.1)
2.7
1.3
Italy (EUR billion)
Sovereign
4.1
3.1
0.6
0.4
0.0
0.3
4.1
0.4
1.6
0.0
1.0
0.6
0.2
0.0
1.8
0.8
Corporates other
2.7
0.2
2.0
0.5
0.1
(0.2)
2.8
0.6
Total
8.4
3.3
3.6
1.5
0.3
0.1
8.7
1.8
Portugal (EUR billion)
Sovereign
0.1
0.0
0.1
0.0
0.0
0.0
0.1
0.0
0.1
0.0
0.1
0.0
0.2
0.0
0.3
0.2
Corporates other
0.1
0.0
0.1
0.0
0.1
0.0
0.2
0.1
Total
0.3
0.0
0.3
0.0
0.3
0.0
0.6
0.3
Spain (EUR billion)
0.9
0.0
0.6
0.3
0.4
0.1
1.3
0.7
Corporates other
1.8
0.1
1.3
0.4
0.0
(0.1)
1.8
0.4
Total
2.7
0.1
1.9
0.7
0.4
0.0
3.1
1.1
Total (EUR billion)
Sovereign
4.7
3.1
1.1
0.5
0.0
0.2
4.7
0.5
4.2
0.0
2.3
1.9
1.0
0.1
5.2
2.9
Corporates other
7.1
0.4
5.7
1.0
0.2
(0.4)
7.3
1.2
Total
16.0
3.5
9.1
3.4
1.2
(0.1)
17.2
4.6
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.

Balance sheet, off-balance sheet and other contractual obligations
Balance sheet, off-balance sheet
and other contractual obligations
During 2014, we increased total assets and total liabilities by 6%, reflecting the foreign exchange translation impact,
partially offset by lower operating activities. As of the end of 2014, total assets were CHF 921.5 billion, total liabilities
were CHF 876.5 billion and total equity was CHF 45.0 billion.
Balance sheet summary

end of
% change

2014
2013
2012
14 / 13
13 / 12

79,349
68,692
61,763
16
11

163,208
160,022
183,455
2
(13)
Trading assets
241,131
229,413
256,399
5
(11)
Net loans
272,551
247,054
242,223
10
2
41,629
52,045
45,768
(20)
14
All other assets
123,594
115,580
134,672
7
(14)
Total assets
921,462
872,806
924,280
6
(6)
Liabilities and equity (CHF million)

Due to banks
26,009
23,108
31,014
13
(25)
Customer deposits
369,058
333,089
308,312
11
8

70,119
94,032
132,721
(25)
(29)
Trading liabilities
72,655
76,635
90,816
(5)
(16)
Long-term debt
177,898
130,042
148,134
37
(12)
Brokerage payables
56,977
73,154
64,676
(22)
13
All other liabilities
103,745
95,580
106,323
9
(10)
Total liabilities
876,461
825,640
881,996
6
(6)
43,959
42,164
35,498
4
19
Noncontrolling interests
1,042
5,002
6,786
(79)
(26)
Total equity
45,001
47,166
42,284
(5)
12
Total liabilities and equity
921,462
872,806
924,280
6
(6)

162
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
Total assets were CHF 921.5 billion as of the end of 2014, up CHF
48.7 billion, or 6%, from the end of 2013. Excluding the foreign
exchange translation impact, total assets decreased CHF 13.8 billion.
In Swiss francs, net loans increased CHF 25.5 billion, or 10%,
primarily due to an increase in commercial and industrial loans,
loans collateralized by securities and residential mortgages in Pri-
vate Banking Wealth Management and the foreign exchange
translation impact. Trading assets increased CHF 11.7 billion,
or 5%, reflecting the foreign exchange translation impact and
increases in equity securities and derivative instruments, partially
offset by a decrease in debt securities. Cash and due from banks
increased CHF 10.7 billion, or 16%, driven by higher central bank
holdings and the foreign exchange translation impact. Central
bank funds sold, securities purchased under resale agreements
and securities borrowing transactions increased CHF 3.2 billion,
or 2%, as the foreign exchange translation impact was largely off-
set by decreases in reverse repurchase transactions, cash collat-
eral to banks and other customers and lower repurchase balances
at banks. A decrease of CHF 10.4 billion, or 20%, in brokerage
receivables was mainly due to lower futures balances as a result
of a new booking policy on margin netting in the US and lower
margin lending balances, partially offset by the foreign exchange
translation impact. All other assets increased CHF 8.0 billion, or
7%, including increases of CHF 7.5 billion, or 12%, in other assets,
CHF 4.1 billion, or 18%, in securities received as collateral and
CHF 0.6 billion, or 8%, in goodwill, partially offset by a decrease of
CHF 1.7 billion, or 17%, in other investments.
Total liabilities were CHF 876.5 billion as of the end of 2014,
up CHF 50.8 billion, or 6%, from the end of 2013. Excluding the
foreign exchange translation impact, total liabilities decreased CHF
9.2 billion.
In Swiss francs, long-term debt increased CHF 47.9 billion,
or 37%, primarily reflecting issuances of senior debt and the for-
eign exchange translation impact, partially offset by maturities.
Customer deposits increased CHF 36.0 billion, or 11%, primar-
ily due to an increase in demand and time customer deposits,
investment accounts and certificates of deposits and the foreign
exchange translation impact. Due to banks increased CHF 2.9
billion, or 13%, primarily due to new bank deposits, an increase
in deposits at central banks, higher bank balances, and the for-
eign exchange translation impact. A decrease of CHF 23.9 billion,
or 25%, in central bank funds purchased, securities sold under
repurchase agreements and securities lending transactions mainly
reflected decreases in qrepurchase transactions, repurchase bal-
ances with customers and cash collateral received from custom-
ers, partially offset by the foreign exchange translation impact.
Brokerage payables decreased CHF 16.2 billion, or 22%, mainly
due to lower futures balances as a result of a new booking policy
on margin netting in the US and lower margin lending balances,
partially offset by the foreign exchange translation impact. Trading
liabilities decreased CHF 4.0 billion, or 5%, reflecting a decrease
in short trading positions, partially offset by the foreign exchange
translation impact. All other liabilities increased CHF 8.2 billion, or
9%, including increases of CHF 5.7 billion, or 28%, in short-term
borrowings and CHF 4.1 billion, or 18%, in obligation to return
securities received as collateral, partially offset by decreases of
CHF 1.1 billion in liabilities of discontinued operations reclassified
as held-for-sale.
u Refer to “Liquidity and funding management” and “Capital management” for
more 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 transac-
tions or other contractual arrangements with, or for the benefit of,
an entity that is not consolidated. These transactions include deriv-
ative instruments, guarantees and similar arrangements, retained
or contingent interests in assets transferred to an unconsolidated
entity in connection with our involvement with SPEs, and obli-
gations and liabilities (including contingent obligations and liabili-
ties) under variable interests in unconsolidated entities that provide
financing, liquidity, credit and other support.
Derivative instruments
We enter into derivative contracts in the normal course of business
for market making, positioning and arbitrage purposes, as well as
for our own risk management needs, including mitigation of inter-
est rate, foreign exchange and credit risk.
qDerivatives are either privately negotiated qOTC contracts
or standard contracts transacted through regulated exchanges.
The most frequently used derivative products include interest
rate, cross-currency swaps and qCDS, interest rate and foreign
exchange options, foreign exchange forward contracts, and foreign
exchange and interest rate futures.
The replacement values of derivative instruments correspond
to their q fair values at the dates of the consolidated balance
sheets and arise from transactions for the account of customers
and for our own account. qPRV constitute an asset, while qNRV
constitute a liability. Fair value does not indicate future gains or
losses, but rather premiums paid or received for a derivative instru-
ment at inception, if applicable, and unrealized gains and losses
from marking to market all derivatives at a particular point in time.
The fair values of derivatives are determined using various method-
ologies, primarily observable market prices where available and, in
their absence, observable market parameters for instruments with
similar characteristics and maturities, net present value analysis or
other pricing models as appropriate.
u Refer to “Derivative instruments” in Risk management – Risk review and
results – Credit risk review for further information.
u Refer to “Note 31 – Derivatives and hedging activities” in V – Consolidated
financial statements – Credit Suisse Group for further information.
u Refer to “Note 34 – Financial instruments” in V – Consolidated financial state-
ments – Credit Suisse Group for further information.

Balance sheet, off-balance sheet and other contractual obligations
Guarantees and similar arrangements
In the ordinary course of business, guarantees and indemnifica-
tions are provided that contingently obligate us to make payments
to a guaranteed or indemnified party based on changes in an
asset, liability or equity security of the guaranteed or indemnified
party. We may be contingently obligated to make payments to a
guaranteed party based on another entity’s failure to perform, or
we may have an indirect guarantee of the indebtedness of oth-
ers. Guarantees provided include, but are not limited to, custom-
ary indemnifications to purchasers in connection with the sale of
assets or businesses; to investors in private equity funds spon-
sored by us regarding potential obligations of their employees
to return amounts previously paid as carried interest; to inves-
tors in our securities and other arrangements to provide gross-up
payments if there is a withholding or deduction because of a tax
assessment or other governmental charge; and to counterparties
in connection with securities lending arrangements.
In connection with the sale of assets or businesses, we some-
times provide the acquirer with certain indemnification provisions.
These indemnification provisions vary by counterparty in scope and
duration and depend upon the type of assets or businesses sold.
They are designed to transfer the potential risk of certain unquan-
tifiable and unknowable loss contingencies, such as litigation, tax
and intellectual property matters, from the acquirer to the seller.
We closely monitor all such contractual agreements in order to
ensure that indemnification provisions are adequately provided for
in our consolidated financial statements.
US GAAP requires disclosure of our maximum potential pay-
ment obligations under certain guarantees to the extent that it is
possible to estimate them and requires recognition of a liability for
the fair value of obligations undertaken for guarantees issued or
amended after December 31, 2002.
u Refer to “Note 32 – Guarantees and commitments” in V – Consolidated finan-
cial statements – Credit Suisse Group for disclosure of our estimated maximum
payment obligations under certain guarantees and related information.
Representations and warranties on residential mortgage
loans sold
In connection with Investment Banking’s sale of US residential
mortgage loans, we have provided certain representations and
warranties relating to the loans sold. We have provided these rep-
resentations and warranties relating to sales of loans to: the US
government-sponsored enterprises Fannie Mae and Freddie Mac;
institutional investors, primarily banks; and non-agency, or pri-
vate label, securitizations. The loans sold are primarily loans that
we have purchased from other parties. The scope of representa-
tions and warranties, if any, depends on the transaction, but can
include: ownership of the mortgage loans and legal capacity to
sell the loans; LTV ratios and other characteristics of the prop-
erty, the borrower and the loan; validity of the liens securing the
loans and absence of delinquent taxes or related liens; confor-
mity to underwriting standards and completeness of documen-
tation; and origination in compliance with law. If it is determined
that representations and warranties were breached, we may be
required to repurchase the related loans or indemnify the inves-
tors to make them whole for losses. Whether we 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
we can successfully claim against parties that sold loans to us
and made representations and warranties to us; 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.
u Refer to “Representations and warranties on residential mortgage loans sold”
in Note 32 – Guarantees and commitments in V – Consolidated financial state-
ments – Credit Suisse Group for further information.
Involvement with special purpose entities
In the normal course of business, we enter into transactions with,
and make 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 is generally structured to isolate
the SPE’s assets from creditors of other entities, including the
Group. The principal uses of SPEs are to assist us and our clients
in securitizing financial assets and creating investment products.
We also use SPEs for other client-driven activity, such as to facili-
tate financings, and for Group tax or regulatory purposes.
As a normal part of our business, we engage in various trans-
actions that include entities that are considered VIEs and are
grouped into three primary categories: qCDO, qCP conduits and
financial intermediation. VIEs are SPEs that typically either lack
sufficient equity to finance their activities without additional subor-
dinated financial support or are structured such that the holders of
the voting rights do not substantively participate in the gains and
losses of the entity. Such entities are required to be assessed for
consolidation under US GAAP, compelling the primary beneficiary
to consolidate the VIE. The primary beneficiary is the party that
has the power to direct the activities that most significantly affect
the economics of the VIE and potentially has significant benefits
or losses in the VIE. We consolidate all VIEs where we are the
primary beneficiary. VIEs may be sponsored by us, unrelated third
parties or clients. Application of the accounting requirements for
consolidation of VIEs, including ongoing reassessment of VIEs
for possible consolidation, may require the exercise of significant
management judgment.
Transactions with VIEs are generally executed to facilitate
securitization activities or to meet specific client needs, such as
providing liquidity or investing opportunities, and, as part of these
activities, we may hold interests in the VIEs.
u Refer to “Note 33 – Transfers of financial assets and variable interest enti-
ties” in V – Consolidated financial statements – Credit Suisse Group for further
information.
We issue subordinated and senior securities through SPEs that
lend the proceeds to the Group.

164
Contractual obligations and other
commercial commitments
In connection with our operating activities, we enter into certain
contractual obligations and commitments to fund certain assets.
Our contractual obligations and commitments include short and
long-term on-balance sheet obligations as well as future contrac-
tual interest payments and off-balance sheet obligations. Total
obligations increased CHF 73.3 billion in 2014 to CHF 741.2 bil-
lion, primarily reflecting the increase in long-term debt of CHF 47.9
billion to CHF 177.9 billion, the increase in customer deposits of
CHF 36.0 billion to CHF 369.1 billion, the increase in short-term
borrowings of CHF 5.7 billion to CHF 25.9 billion, the increase
in due to banks of CHF 2.9 billion to CHF 26.0 billion and the
increase in operating lease obligations CHF 1.1 billion to CHF 6.5
billion, partially offset by the decrease in brokerage payables of
CHF 16.2 billion to CHF 57.0 billion and the decrease in trading
liabilities of CHF 4.0 billion to CHF 72.7 billion.
u Refer to “Note 24 – Long-term debt” in V – Consolidated financial statements
– Credit Suisse Group for further information on long-term debt and the related
interest commitments.
u Refer to “Note 32 – Guarantees and commitments” in V – Consolidated finan-
cial statements – Credit Suisse Group for further information on commitments.
Contractual obligations and other commercial commitments

2014
2013

Less

More

than
1 to 3
3 to 5
than

Payments due within
1 year
years
years
5 years
Total
Total
On- and off-balance sheet obligations (CHF million)

Due to banks
24,324
1,218
112
355
26,009
23,108
Customer deposits
365,158
3,064
247
589
369,058
333,089
25,921
0
0
0
25,921
20,193
Long-term debt 1
29,635
42,695
45,593
59,975
177,898 2
130,042 2
Contractual interest payments 3
1,258
1,858
1,320
910
5,346 4
5,615
Trading liabilities
72,655
0
0
0
72,655
76,635
Brokerage payables
56,977
0
0
0
56,977
73,154
Capital lease obligations
0
0
0
0
0
1
Operating lease obligations
572
1,031
932
3,941
6,476
5,421
Purchase obligations
388
290
159
3
840
585
Total obligations 5
576,888
50,156
48,363
65,773
741,180
667,843
1
Refer to “Debt issuances and redemptions” in Liquidity and funding management and “Note 24 – Long-term debt” in V – Consolidated financial statements – Credit Suisse Group for further
information on long-term debt.
2
Includes non-recourse liabilities from consolidated VIEs of CHF 13,452 million and CHF 12,992 million as of December 31, 2014 and 2013, respectively.
3
Includes interest payments on fixed rate long-term debt, fixed rate interest-bearing deposits (excluding demand deposits) and fixed rate short-term borrowings, which have not been effec-
tively converted to variable rate on an individual instrument level through the use of swaps.
4
Due to the non-determinable nature of interest payments, the following notional amounts have been excluded from the table: variable rate long-term debt of CHF 90,075 million, variable
rate short-term borrowings of CHF 16,391 million, variable rate interest-bearing deposits and demand deposits of CHF 259,119 million, fixed rate long-term debt and fixed rate interest-
bearing deposits converted to variable rate on an individual instrument level through the use of swaps of CHF 75,049 million and CHF 1,617 million, respectively.
5
Excludes total accrued benefit liability for pension and other post-retirement benefit plans of CHF 689 million and CHF 524 million as of December 31, 2014 and 2013, respectively,
recorded in other liabilities in the consolidated balance sheets, as the accrued liability does not represent expected liquidity needs. Refer to “Note 30 – Pension and other post-retirement
benefits” in V – Consolidated financial statements – Credit Suisse Group for further information on pension and other post-retirement benefits.

165
Corporate Governance
and Compensation
166 Corporate Governance
196 Compensation
IV

166
Overview
The Group’s corporate governance complies with internationally
accepted standards. We are committed to safeguarding the inter-
ests of our stakeholders and recognize the importance of good
corporate governance. We know that transparent disclosure of our
governance helps stakeholders assess the quality of the Group
and our management and assists investors in their investment
decisions.
Developments in 2014
In November 2013, the Swiss Federal Council enacted the Ordi-
nance Against Excessive Compensation with respect to Listed
Corporations (Compensation Ordinance). The Compensation Ordi-
nance came into effect on January 1, 2014 and implements key
elements of the so-called “Minder Initiative”. It imposes restric-
tions and requirements on board and executive compensation for
Swiss public companies, implements criminal sanctions in cer-
tain cases of intentional noncompliance and is generally intended
to strengthen shareholder rights. To conform to the new require-
ments resulting from the Compensation Ordinance, we imple-
mented changes to the Articles of Association (AoA) at the 2014
Annual General Meeting (AGM) and the Organizational Guidelines
and Regulations (OGR) in June 2014. Pursuant to the Compensa-
tion Ordinance, board members, the board chairperson and com-
pensation committee members must now be directly elected by
shareholders annually, which we did for the first time at the 2014
AGM. In addition, in accordance with the Compensation Ordinance
and the Group’s AoA, beginning with the 2015 AGM, the compen-
sation of the Board of Directors (Board) and the Executive Board
is subject to a binding vote at the AGM.
u Refer to “Board compensation proposed for approval at the 2015 AGM” and
“Executive Board compensation proposed for approval at the 2015 AGM” in
Compensation – Board of Directors Compensation and – Executive Board Com-
pensation, respectively, for further information on the binding vote.
On January 1, 2014, the Capital Requirements Directive (CRD)
IV became effective in various EU countries, including the UK.
CRD IV implements the q Basel III framework and also makes
changes to rules on corporate governance, including compensa-
tion. The compensation rules are applicable to employees at Group
subsidiaries that are regulated locally in our EU locations.
In August 2014, the Swiss Code of Best Practice for Cor-
porate Governance and, in September 2014, the SIX Swiss
Exchange (SIX) Directive on Information relating to Corporate
Governance were revised. The revisions reflect the requirements
of the Compensation Ordinance, as well as other international cor-
porate governance developments. Various new and enhanced dis-
closure requirements stated in the SIX Directive pertain primarily
to the implementation of the Compensation Ordinance.
u Refer to “Executive compensation” in I – Information on the company – Regu-
lation and supervision – Recent regulatory developments and proposals for fur-
ther information on the Compensation Ordinance.
Complying with rules and regulations
We fully adhere to the principles set out in the Swiss Code of
Best Practice for Corporate Governance, dated August 28, 2014,
including its appendix stipulating recommendations on the process
for setting compensation for the Board and the Executive Board.
We also continuously monitor and adapt our practices to reflect
developments in corporate governance principles and practices in
jurisdictions outside Switzerland. As in the past few years, regula-
tors focused their attention on compensation practices at financial
institutions in 2014.
In connection with our primary listing on the SIX, we are sub-
ject to the SIX Directive on Information Relating to Corporate Gov-
ernance, dated September 1, 2014. Our shares are also listed on
the New York Stock Exchange (NYSE) in the form of qAmerican
Depositary Shares (ADS) and certain of the Group’s exchange
traded notes are listed on the Nasdaq Stock Market (Nasdaq). As
a result, we are subject to certain US rules and regulations. We
adhere to the NYSE’s and the Nasdaq’s corporate governance
listing standards (NYSE and Nasdaq standards), with a few excep-
tions where the rules are not applicable to foreign private issuers.
The following are the significant differences between our cor-
porate governance standards and the corporate governance stan-
dards applicable to US domestic issuers listed on the NYSE and
Nasdaq:
p Approval of employee benefit plans: NYSE and Nasdaq stan-
dards require shareholder approval of the establishment of,
and material revisions to, certain equity compensation plans.
We comply with Swiss law, which requires that shareholders
approve the creation of conditional capital used to set aside
shares for employee benefit plans and other equity compensa-
tion plans, but does not require shareholders to approve the
terms of those plans.
p Risk assessment and risk management: NYSE standards
allocate to the Audit Committee responsibility for the discus-
sion of guidelines and policies governing the process by which
risk assessment and risk management is undertaken, while at
the Group these duties are assumed by the Risk Committee.
Whereas our Audit Committee members satisfy the NYSE as
well as Nasdaq independence requirements, our Risk Commit-
tee may include non-independent members.
p Independence of nominating and corporate governance com-
mittee: NYSE and Nasdaq standards require that all members
of the nominating and corporate governance committee be
independent. The Group’s Chairman’s and Governance Com-
mittee is currently comprised entirely of independent members,
but according to its charter, may include non-independent
members.

167Corporate Governance and Compensation
p Reporting: NYSE standards require that certain board com-
mittees report specified information directly to shareholders,
while under Swiss law only the Board reports directly to the
shareholders and the committees submit their reports to the
full Board.
p Appointment of the external auditor: NYSE and Nasdaq stan-
dards require that an Audit Committee of a listed company
comply with and has the authority necessary to comply with
the requirements of Rule 10A-3 of the Securities Exchange
Act of 1934. Rule 10A-3 requires the Audit Committee to be
directly responsible for the appointment, compensation, reten-
tion and oversight of the external auditor unless there is a con-
flicting requirement under home country law. Under Swiss law,
the appointment of the external auditor must be approved by
the shareholders at the AGM based on the proposal of the
Board, which receives the advice and recommendation of the
Audit Committee.
p Audit Committee charter: Nasdaq standards require the Audit
Committee to review and assess the adequacy of its charter
on an annual basis, while our Audit Committee’s charter only
requires review and assessment from time to time.
p Executive sessions: NYSE and Nasdaq standards require
that the board of directors meet regularly in executive ses-
sions comprised solely of independent directors. Our Board
meets regularly in executive sessions comprised of all direc-
tors, including any directors determined to be not independent.
If any item discussed at the meeting raises a conflict of interest
for any of our directors, however, such director does not par-
ticipate in the related decision making.
p Quorums: Nasdaq standards require that the company’s by-
laws provide for a quorum of at least 331
⁄3% of the outstanding
shares of the company’s common stock for any meeting of the
holders of common stock. The Group’s AoA call for a quorum
in certain instances, but do not require a quorum of 331
⁄3% or
greater of the holders of the outstanding shares of common
stock for any meeting of shareholders.
p Independence: NYSE and Nasdaq independence standards
specify thresholds for the maximum permissible amount of (i)
direct compensation that can be paid by the company to a
director or an immediate family member thereof, outside of
such director’s directorship fees and other permitted pay-
ments; and (ii) payments between the company and another
company at which such director or an immediate family mem-
ber thereof is an executive officer, controlling shareholder,
partner or employee. Our independence standards do not
specify thresholds for direct compensation or cross-company
revenues, but consider these facts in the overall materiality
of the business relationship determination for independence
purposes.
Corporate governance framework
The Board has adopted corporate governance policies and pro-
cedures, which are defined in a series of documents and form the
basis of a sound corporate governance framework. Our corporate
governance documents, all of which are available on our website at
www.credit-suisse.com/governance, include:
p AoA: define the purpose of the business, the capital structure
and the basic organizational framework. The AoA of the Group
is dated December 2, 2014, and the AoA of the Bank is dated
September 4, 2014.
p Code of Conduct: defines the Group’s ethical values and
professional standards that the Board and all employees are
required to follow, including adherence to all relevant laws, reg-
ulations and policies in order to maintain and strengthen our
reputation for integrity, fair dealing and measured risk taking.
The Code of Conduct also implements requirements stipulated
under the US Sarbanes-Oxley Act of 2002 (SOX) by includ-
ing provisions on ethics for our Chief Executive Officer (CEO)
and our principal financial and accounting officers and other
persons performing similar functions. No waivers or excep-
tions are permissible under our Code of Conduct. Our Code of
Conduct is available on our website at www.credit-suisse.com/
code in ten languages.
p Organizational Guidelines and Regulations: define the respon-
sibilities and sphere of authority of the Board, its committees
and the various senior management bodies within the Group,
as well as the relevant reporting procedures.
p Corporate Governance Guidelines: summarize corporate gov-
ernance principles promoting the function of the Board and its
committees and the effective governance of the Group.
p Board of Directors charter: outlines the organization and
responsibilities of the Board.
p Board committee charters: define the organization and respon-
sibilities of the committees.
p Compensation policy: provides a foundation for the develop-
ment of sound compensation plans and practices.
The summaries herein of the material provisions of our AoA and
the Swiss Code of Obligations do not purport to be complete and
are qualified in their entirety by reference to the Swiss Code of
Obligations and the AoA. The Group’s and Bank’s AoA are avail-
able on our website at www.credit-suisse.com/articles.
u Refer to “Shareholders” and “Additional information” for a summary of the
material provisions of our AoA and the Swiss Code of Obligations as they relate
to our shares.

168
Company
Credit Suisse Group AG (Group) and Credit Suisse AG (Bank)
are registered as Swiss corporations in the Commercial Register
of the Canton of Zurich as of March 3, 1982 and April 27, 1883
under the registration numbers CHE-105.884.494 and CHE-
106.831.974, respectively, and have their registered and main
offices at Paradeplatz 8, 8001 Zurich, Switzerland. The Group and
the Bank were incorporated on March 3, 1982 and July 5, 1856,
respectively, with unlimited duration. The authorized representative
in the US for the Group and the Bank is Credit Suisse (USA), Inc.,
11 Madison Avenue, New York, New York, 10010. The business
purpose of the Group, as set forth in Article 2 of its AoA, is to hold
direct or indirect interests in all types of businesses in Switzerland
and abroad, in particular in the areas of banking, finance, asset
management and insurance. The business purpose of the Bank,
as set forth in Article 2 of its AoA, is to operate as a bank, with all
related banking, finance, consultancy, service and trading activities
in Switzerland and abroad. The AoA of the Group and the Bank set
forth their powers to establish new businesses, acquire a major-
ity or minority interest in existing businesses and provide related
financing and to acquire, mortgage and sell real estate properties
both in Switzerland and abroad.
Our business consists of two operating divisions: Private Bank-
ing Wealth Management and Investment Banking. The two divi-
sions are complemented by Shared Services and a regional man-
agement structure.
In 2013, the Group announced a program to evolve the Group’s
legal entity structure to meet developing and future regulatory
requirements. The program has been approved by the Board. It
remains subject to final approval by the q Swiss Financial Mar-
ket Supervisory Authority FINMA (FINMA) and other regulators.
Implementation of the program is underway, with a number of key
components expected to be implemented throughout 2015 and
2016.
u Refer to “Evolution of legal entity structure” in II – Operating and financial
review – Credit Suisse – Information and developments for further information on
our legal entity structure.
u Refer to “II – Operating and financial review” for a detailed review of our oper-
ating results.
u Refer to “Note 39 – Significant subsidiaries and equity method investments” in
V – Consolidated financial statements – Credit Suisse Group for a list of signifi-
cant subsidiaries and associated entities.
The Group is listed on the SIX (Swiss Security Number 1213853),
with a market capitalization of CHF 40,308 million as of Decem-
ber 31, 2014. Our shares are also listed in the form of qADS on
the NYSE. No Group subsidiaries have shares listed on the SIX or
any other stock exchange.
The Swiss Code of Obligations requires directors and mem-
bers of senior management to safeguard the interests of the cor-
poration and, in connection with this requirement, imposes the
duties of care and loyalty on directors and members of senior
management. While Swiss law does not have a general provision
on conflicts of interest, the duties of care and loyalty are generally
understood to disqualify directors and members of senior manage-
ment from participating in decisions that could directly affect them.
Directors and members of senior management are personally lia-
ble to the corporation for any breach of these provisions.
Neither Swiss law nor our AoA restrict our power to borrow
and raise funds in any way. The decision to borrow funds is passed
by or under the direction of our Board, with no shareholders’ reso-
lution required.
Number of employees
end of
2014
2013
% change

26,100
26,000
0
Investment Banking
19,400
19,700
(2)
Corporate Center
300
300
0
Number of employees
45,800
46,000
0
   of which Switzerland
17,100
17,900
(4)
   of which EMEA
9,900
9,600
3
   of which Americas
10,900
11,100
(2)
   of which Asia Pacific
7,900
7,400
7
Employees
As of December 31, 2014, we had 45,800 employees worldwide,
of which 17,100 were in Switzerland and 28,700 were abroad.
The number of employees decreased slightly by 200, com-
pared to the end of 2013. This reflected headcount reductions in
connection with our cost efficiency initiatives in Investment Bank-
ing and Private Banking Wealth Management, partially offset by
graduate hiring and contractor employee conversion. Our corporate
titles include managing director, director, vice president, assistant
vice president and non-officer staff. The majority of our employees
do not belong to unions. We have not experienced any significant
strikes, work stoppages or labor disputes in recent years. We con-
sider our relations with our employees to be good.
Information policy
We are committed to an open and fair information policy with
our shareholders and other stakeholders. Our Investor Relations
and Corporate Communications departments are responsible for
inquiries.
All Credit Suisse Group AG shareholders registered in our
share register receive an invitation to our AGM including an order
form to receive the annual report and other reports. Each reg-
istered shareholder also receives a quarterly shareholders’ let-
ter and may elect to receive the quarterly reports on our financial
performance.
All of these reports and other information can be accessed on
our website at www.credit-suisse.com/investors.

Indemnification
The Group’s AoA and the Bank’s AoA do not contain provisions
regarding the indemnification of directors and officers. According
to Swiss statutory law, an employee has a right to be indemnified
by the employer against losses and expenses incurred by such
person in the execution of such person’s duties under an employ-
ment agreement, unless the losses and expenses arise from the
employee’s gross negligence or willful misconduct. It is our pol-
icy to indemnify current and former directors and/or employees
against certain losses and expenses in respect of service as a
director or employee of the Group, one of the Group’s affiliates or
another entity that we have approved, subject to specific condi-
tions or exclusions. We maintain directors’ and officers’ insurance
for our directors and officers.
Shareholders
Capital structure
Our total issued share capital as of December 31, 2014 was
CHF 64,286,758 divided into 1,607,168,947 registered shares,
with a nominal value of CHF 0.04 per share.
u Refer to “Note 8 – Share capital, conditional, conversion and authorized
capital of Credit Suisse Group” in VI – Parent company financial statements –
Credit Suisse Group and our AoA (Articles 26, 26b-c and 27) for information on
changes to our capital structure during the year.
Shareholder base
We have a broad shareholder base, with the majority of shares
owned directly or indirectly by institutional investors outside Swit-
zerland. Through the use of an external global market intelligence
firm, we regularly gather additional information on the composition
of our shareholder base including information on shares that are
not registered in the share register. According to this data, our
shareholder base as of December 31, 2014 was comprised of 8%
private investors, 83% institutional investors and 9% other inves-
tors. The geographical break down of our institutional investors is
as follows: 16% Switzerland, 11% other continental Europe, 15%
UK and Ireland, 48% North America and 10% the rest of the
world.
As of December 31, 2014, 118,759 shareholders were listed
in our share register. To the best of our knowledge, there are no
agreements in place that could lead to a change in control of the
Group. As of December 31, 2014, 43.3 million, or 2.69%, of the
issued shares were in the form of qADS. Another 19.7 million, or
1.29%, of the issued shares were registered in the name of US-
domiciled shareholders (excluding nominees) as of December 31,
2014.
The information provided in the following tables reflects the
distribution of Group shares as registered in our share register.
Distribution of Group shares in the share register
end of
2014
2013

Number

Number

Number

Number

of

of

of

of

shareholders
%
shares
%
shareholders
%
shares
%
Distribution of Group shares

   Swiss
104,750
88
103,656,285
6
115,185
88
110,678,408
7
   Foreign
10,184
9
13,024,837
1
11,165
9
14,322,072
1
Private investors
114,934
97
116,681,122
7
126,350
97
125,000,480
8
   Swiss
3,332
3
156,025,204
10
3,755
3
168,732,633
11
   Foreign
493
0
709,185,750
44
631
0
774,995,489
49
Institutional investors
3,825
3
865,210,954
54
4,386
3
943,728,122
59
Shares registered in share register
118,759
100
981,892,076
61
130,736
100
1,068,728,602
67
   of which Switzerland
108,082
91
259,681,489
16
118,941
91
279,411,046
18
   of which Europe
9,664
8
494,318,812
31
10,590
8
534,716,557
34
   of which US
151
0
205,229,688
13
184
0
222,433,937
14
   of which Other
862
1
22,662,087
1
1,021
1
32,167,062
2
Shares not registered in share register
–
–
625,276,871
39
–
–
527,390,747
33
Total shares issued
–
–
1,607,168,947
100
–
–
1,596,119,349
100

170
Distribution of institutional investors in share register by industry
end of
2014
2013

Number

Number

Number

Number

of

of

of

of

shareholders
%
shares
%
shareholders
%
shares
%
Institutional investors by industry

Banks
123
0
1,560,911
0
36
0
2,672,727
0
Insurance companies
100
0
7,475,049
0
103
0
9,336,874
1
Pension funds
602
1
39,265,226
2
723
1
43,645,198
3
Investment trusts
353
0
119,401,124
7
392
0
118,122,666
7
Other trusts
671
1
5,920,253
0
746
1
5,473,606
0
Governmental institutions
32
0
7,176,248
0
33
0
7,934,377
0
Other 1
1,785
2
103,333,438
6
2,164
2
104,905,938
7
Direct entries
3,666
3
284,132,249
18
4,197
3
292,091,386
18
Fiduciary holdings
159
0
581,078,705
36
189
0
651,636,736
41
Total institutional investors
3,825
3
865,210,954
54
4,386
3
943,728,122
59
1
Includes various other institutional investors for which a breakdown by industry type was not available.
Significant shareholders
Under the Swiss Federal Act on Stock Exchanges and Securities
Trading (SESTA), anyone holding shares in a company listed on
the SIX is required to notify the company and the SIX if their hold-
ing reaches, falls below or exceeds the following thresholds: 3%,
5%, 10%, 15%, 20%, 25%, 331
⁄3%, 50% or 662
⁄3% of the voting
rights entered into the commercial register, whether or not the vot-
ing rights can be exercised (that is, notifications must also include
certain derivative holdings such as options or similar instruments).
Following receipt of such notification, the company has an obliga-
tion to inform the public. In addition, pursuant to the Swiss Code of
Obligations, a company must disclose in the notes to their annual
consolidated financial statements the identity of any shareholders
who own in excess of 5% of their shares. The following provides
an overview of the holdings of shares of our significant sharehold-
ers, including any rights to purchase or dispose of shares, based
on the most recent disclosure notifications. In line with the SESTA
requirements, the percentages indicated below were calculated
in relation to the share capital reflected in the AoA at the time
of the disclosure notification. The full text of all notifications can
be found on our website at www.credit-suisse.com/shareholders.
Each share entitles the holder to one vote.
u Refer to “Note 3 – Business developments, significant shareholders and sub-
sequent events” in V – Consolidated financial statements – Credit Suisse Group
for further information on significant shareholders.
The Group also holds positions in its own shares, which are sub-
ject to the same disclosure requirements as significant external
shareholders. These positions fluctuate and primarily reflect mar-
ket making, facilitating client orders and satisfying the obliga-
tions under our employee compensation plans. Shares held by the
Group have no voting rights. As of December 31, 2014, our hold-
ings amounted to 3.96% purchase positions (1.49% registered
shares and 2.47% share acquisition rights) and 32.60% sales
positions (disposal rights).
Cross shareholdings
The Group has no cross shareholdings in excess of 5% of capital
or voting rights with any other company.

Significant shareholders

Group publication
Number of
Approximate
Purchase rights

of notification
shares (million)
shareholding %
%
December 31, 2014 or the most recent notification date
The Olayan Group (registered entity – Crescent Holding GmbH)
April 6, 2013
88.5
6.7
8.0 1
Qatar Investment Authority (registered entity – Qatar Holding LLC)
October 31, 2013
82.0
5.2
16.5 2
Harris Associates L.P.
November 9, 2013 3
81.5
5.2
–
Norges Bank
June 19, 2014
80.0
5.0
–
Dodge Cox
December 19, 2012 4
63.5
5.0
–
Franklin Resources, Inc.
February 25, 2015
67.5
4.2
–
Capital Group Companies, Inc.
January 14, 2015
47.8
3.0
–
BlackRock Inc.
January 25, 2013
38.6
3.0
–
April 6, 2013
88.5
6.7
7.9
October 31, 2013
82.0
5.2
16.5
November 9, 2013
81.5
5.2
–
Dodge Cox
December 19, 2012
63.5
5.0
–
March 12, 2014
57.6
3.6
–
Norges Bank
April 5, 2013
39.8
3.0
1.6
January 22, 2013
39.4
3.1
1.0
BlackRock Inc.
January 25, 2013
38.6
3.0
–
July 24, 2012
78.4
6.1
10.9
April 30, 2011
76.1
6.2
–
Dodge Cox
December 19, 2012
63.5
5.0
–
September 14, 2012
57.3
4.5
–
January 22, 2013
39.4
3.1
1.0
BlackRock Inc.
January 25, 2013
38.6
3.0
–
May 17, 2012
36.9
3.0
–
Norges Bank
August 3, 2012
28.0
2.2
1.7
1
Consists of 8.0% purchase rights relating to The Olayan Group’s holdings of USD 1.725 billion 9.5% tier 1 capital instruments (perpetual security with mandatory contingent conversion
into shares), which will be converted into shares only in situations where the Group no longer meets specific regulatory capital requirements.
2
Consists of 16.3% purchase rights relating to Qatar Holding LLC’s holdings of USD 1.72 billion 9.5% tier 1 capital instruments and CHF 2.5 billion 9.0% tier 1 capital instruments (per-
petual security with mandatory contingent conversion into shares), which will be converted into shares only in situations where the Group no longer meets specific regulatory capital require-
ments, and 0.2% purchase rights relating to options.
3
Harris Associates L.P.’s position includes the reportable position (4.21% shareholding) of Harris Associates Investment Trust, which is managed by Harris Associates L.P., as published by
the SIX on November 26, 2014.
4
Dodge Cox’s position includes the reportable position (3.03% shareholding) of Dodge Cox International Stock Fund, which is managed by Dodge Cox, as published by the SIX on
June 11, 2014.
Shareholder rights
We are fully committed to the principle of equal treatment of
all shareholders and encourage shareholders to participate at
our AGM. The following is a summary of certain shareholder rights
at the Group. Refer to our AoA, which is available on our website at
www.credit-suisse.com/articles.
Voting rights and transfer of shares
There is no limitation under Swiss law or the AoA on the right to
own Group shares.
In principle, each share represents one vote at the AGM.
Shares held by the Group have no voting rights. Shares for which a
single shareholder or shareholder group can exercise voting rights
may not exceed 2% of the total outstanding share capital, unless
one of the exemptions discussed below applies. The restrictions
on voting rights do not apply to:
p the exercise of voting rights by the independent proxy as
elected by the AGM;
p shares in respect of which the shareholder confirms to us that the
shareholder has acquired the shares in the shareholder’s name
for the shareholder’s own account and in respect of which the
disclosure requirements in accordance with the SESTA and the
relevant ordinances and regulations have been fulfilled; or
p shares that are registered in the name of a nominee, provided
that this nominee is willing to furnish us on request the name,
address and shareholding of the person(s) for whose account
the nominee holds 0.5% or more of the total share capital
and confirms to us that any applicable disclosure requirements
under the SESTA have been fulfilled.

172
In order to execute voting rights, shares need to be registered in
the share register directly or in the name of a nominee. In order to
be registered in the share register, the purchaser must file a share
registration form. The registration of shares in the share regis-
ter may be requested at any time. Failing such registration, the
purchaser may not vote or participate in shareholders’ meetings.
However, each shareholder, whether registered in the share register
or not, receives dividends or other distributions approved at the AGM.
The transfer restrictions apply regardless of the way and the form in
which the registered shares are kept in the accounts and regardless
of the provisions applicable to transfers. The transfer of intermediated
securities based on Group shares, and the pledging of these inter-
mediated securities as collateral, is based on the provisions of the
Swiss Federal Intermediated Securities Act. Transfer or pledging as
collateral by means of written assignment are not permitted.
Annual General Meeting
Under Swiss law, the AGM must be held within six months of the
end of the fiscal year. Notice of an AGM, including agenda items
and proposals submitted by the Board and by shareholders, must
be published in the Swiss Official Gazette of Commerce at least
20 days prior to the AGM.
Shares only qualify for voting at an AGM if they are entered
into the share register with voting rights no later than three days
prior to the AGM.
Convocation of shareholder meetings
The AGM is convened by the Board or, if necessary, by the stat-
utory auditors, with 20 days’ prior notice. The Board is further
required to convene an extraordinary shareholders’ meeting (EGM)
if so resolved at a shareholders’ meeting or if so requested by
shareholders holding in aggregate at least 10% of the nominal
share capital. The request to call an EGM must be submitted in
writing to the Board, and, at the same time, Group shares repre-
senting at least 10% of the nominal share capital must be depos-
ited for safekeeping. The shares remain in safekeeping until the
day after the EGM.
Request to place an item on the agenda
Shareholders holding shares with an aggregate nominal value of at
least CHF 40,000 have the right to request that a specific item be
placed on the agenda and voted upon at the AGM. The request to
include a particular item on the agenda, together with a relevant
proposal, must be submitted in writing to the Board no later than
45 days before the meeting and, at the same time, Group shares
with an aggregate nominal value of at least CHF 40,000 must be
deposited for safekeeping. The shares remain in safekeeping until
the day after the AGM.
Statutory quorums
The AGM may, in principle, pass resolutions without regard to the
number of shareholders present at the meeting or represented by
proxy. Resolutions and elections generally require the approval
of a majority of the votes represented at the meeting, except as
otherwise provided by mandatory provisions of law or by the AoA.
Shareholders’ resolutions that require a vote by a majority of the
votes represented include:
p amendments to the AoA, unless a supermajority is required;
p election of members of the Board, the Chairman of the Board
(Chairman), the members of the Compensation Committee,
the independent proxy and statutory auditors;
p approval of the compensation of the members of the Board
and the Executive Board;
p approval of the annual report and the statutory and consoli-
dated accounts;
p discharging of the acts of the members of the Board and
Executive Board; and
p determination of the appropriation of retained earnings.
A quorum of at least two-thirds of the votes represented is required
for resolutions on:
p change of the purpose of the company;
p creation of shares with increased voting powers;
p implementation of transfer restrictions on shares;
p increase in conditional and authorized capital;
p increase of capital by way of conversion of capital surplus or by
contribution in kind;
p restriction or suspension of pre-emptive rights;
p change of location of the principal office; and
p dissolution of the company without liquidation.
A quorum of at least half of the total share capital and approval
by at least three-quarters of the votes represented is required for
resolutions on:
p the conversion of registered shares into bearer shares;
p amendments to the AoA relating to registration and voting
rights of nominee holders; and
p the dissolution of the company.
A quorum of at least half of the total share capital and the approval
of at least seven-eighths of the votes cast is required for amend-
ments to provisions of the AoA relating to voting rights.
Say on pay
In accordance with the Swiss Code of Best Practice for Corporate
Governance, the Group submitted the compensation report (con-
tained in the Corporate Governance and Compensation section
of the Annual Report) for a consultative vote by shareholders at
the 2014 AGM. In accordance with the Compensation Ordinance,
the Group will submit Board and Executive Board compensation
recommendations for binding votes by shareholders for the first
time at the 2015 AGM. For the Board, an aggregate amount of
compensation to be paid to members of the Board for the period
from the 2015 to the 2016 AGM will be proposed for approval at
the 2015 AGM. For the Executive Board, an aggregate amount of
variable compensation to be awarded to Executive Board mem-
bers for the financial year 2014 and an aggregate amount of fixed

compensation to be paid to members of the Executive Board for
the period from the 2015 to the 2016 AGM will be proposed for
approval at the 2015 AGM. In line with current practice, the Group
will continue to submit the compensation report for a consultative
vote by shareholders.
u Refer to “Board compensation proposed for approval at the 2015 AGM” and
“Executive Board compensation proposed for approval at the 2015 AGM” in
Compensation – Board of Directors Compensation and – Executive Board Com-
pensation, respectively, for further information on the binding vote.
Pre-emptive rights
Under Swiss law, any share issue, whether for cash or non-cash
consideration or no consideration, is subject to the prior approval of
the shareholders. Shareholders of a Swiss corporation have certain
pre-emptive rights to subscribe for new issues of shares in propor-
tion to the nominal amount of shares held. A resolution adopted at
a shareholders’ meeting with a supermajority may, however, limit or
suspend pre-emptive rights in certain limited circumstances.
Notices
Notices to shareholders are made by publication in the Swiss
Official Gazette of Commerce. The Board may designate further
means of communication for publishing notices to sharehold-
ers. Notices required under the listing rules of the SIX will either
be published in two Swiss newspapers in German and French
and sent to the SIX or otherwise communicated to the SIX in
accordance with applicable listing rules. The SIX may disseminate
the relevant information.
Board of Directors
Membership and qualifications
The AoA provide that the Board shall consist of a minimum of seven
members. The Board currently consists of 13 members. We believe
that the size of the Board must be such that the committees can be
staffed with qualified members. At the same time, the Board must
be small enough to ensure an effective and rapid decision-making
process. The members are elected at the AGM by our shareholders
individually for a period of one year and are eligible for re-election.
Shareholders will also elect a member of the Board as the Chairman
and each of the members of the Compensation Committee for a
period of one year. One year of office is understood to be the period
of time from one AGM to the close of the next AGM. Our OGR spec-
ify that the members of the Board shall generally retire after having
served on the Board for 15 years.
The Board has four committees: the Chairman’s and Gover-
nance Committee, the Audit Committee, the Compensation Com-
mittee and the Risk Committee. Except for the Compensation
Committee members, the committee members are appointed by
the Board for a term of one year. An overview of the Board and
committee membership is shown in the following table. The com-
position of the Boards of the Group and the Bank is identical.
Members of the Board and Board committees

Board
Current

Chairman’s and

member
term

Governance
Audit
Compensation
Risk

since
end
Independence
Committee
Committee
Committee
Committee
December 31, 2014

Urs Rohner, Chairman
2009
2015
Independent
Chairman
–
–
–
Jassim Bin Hamad J.J. Al Thani
2010
2015
Not independent
–
–
–
–
Iris Bohnet
2012
2015
Independent
–
–
Member
–
Noreen Doyle, Vice-Chair,

Lead Independent Director
2004
2015
Independent
Member
Member
–
–
Jean-Daniel Gerber
2012
2015
Independent
–
Member
–
–
Andreas N. Koopmann
2009
2015
Independent
–
–
Member
Member
Jean Lanier
2005
2015
Independent
Member
Member
Chairman
–
Kai S. Nargolwala
2013
2015
Independent
–
–
Member
Member
Anton van Rossum
2005
2015
Independent
–
–
–
Member
Severin Schwan
2014
2015
Independent
–
–
–
Member
Richard E. Thornburgh, Vice-Chair
2006
2015
Independent
Member
Member
–
Chairman
Sebastian Thrun
2014
2015
Independent
–
–
–
Member
John Tiner
2009
2015
Independent
Member
Chairman
–
Member

174
Board composition
Industry experience Geographical origin Length of tenure
7
3
3
1
4
3
5
6
6
1
p Financial services
p Manufacturing
technology
p Law, government
academia
p Switzerland
p Americas
p EMEA
p Asia Pacific
p Less than 5 years
p Between 5 and 10 years
p 10 years or more
Board changes
Peter Brabeck-Letmathe and Walter B. Kielholz stepped down
from the Board at the 2014 AGM and Severin Schwan and Sebas-
tian Thrun were elected as new members of the Board. At the
2015 AGM on April 24, 2015, Jean-Daniel Gerber and Anton van
Rossum will be stepping down from the Board. The Board pro-
poses that all other current members of the Board be re-elected
to the Board at the 2015 AGM, proposes the re-election of Urs
Rohner as Chairman and proposes Iris Bohnet, Andreas N. Koop-
mann, Jean Lanier and Kai S. Nargolwala as members of the
Compensation Committee. The Board also proposes the elec-
tion of Seraina Maag, President and CEO of Europe, Middle East
and Africa (EMEA) for American International Group (AIG), to the
Board.
Board composition
The Chairman’s and Governance Committee regularly consid-
ers the composition of the Board as a whole and in light of staff-
ing requirements for the committees. The Chairman’s and Gov-
ernance Committee recruits and evaluates candidates for Board
membership based on criteria as set forth by the Corporate Gover-
nance Guidelines and the OGR. The Chairman’s and Governance
Committee may also retain outside consultants with respect to the
identification and recruitment of potential new Board members. In
assessing candidates, the Chairman’s and Governance Committee
considers the requisite skills and characteristics of Board members
as well as the composition of the Board as a whole. Among other
considerations, the Chairman’s and Governance Committee takes
into account independence, diversity, age, skills and management
experience in the context of the needs of the Board to fulfill its
responsibilities. The Chairman’s and Governance Committee also
considers other activities and commitments of an individual in order
to be satisfied that a proposed member of the Board can devote
enough time to a Board position at the Group. The background,
skills and experience of our Board members are diverse and broad
and include holding top management positions at financial services
and industrial companies in Switzerland and abroad or having held
leading positions in government, academia and international orga-
nizations. The Board is composed of individuals with diverse expe-
rience, geographical origin and tenure.
To maintain a high degree of diversity and independence in the
future, we have a succession planning process in place to identify
potential candidates for the Board at an early stage. With this,
we are well prepared when Board members rotate off the Board.
Besides more formal criteria consistent with legal and regulatory
requirements and following the newly revised Swiss Code of Best
Practice for Corporate Governance, we believe that other aspects
including team dynamics and personal reputation of Board mem-
bers play a critical role in ensuring the effective functioning of the
Board. This is why we place the utmost importance on the right mix
of personalities who are also fully committed to making their blend
of specific skills and experience available to the Board.
New members
Any newly appointed member participates in an orientation pro-
gram to become familiar with our organizational structure, strategic
plans, significant financial, accounting and risk issues and other
important matters. The orientation program is designed to take
into account the new Board member’s individual background and
level of experience in each specific area. Moreover, the program’s
focus is aligned with any committee memberships of the person
concerned. Board members are encouraged to engage in continu-
ing training. The Board and the committees of the Board regularly
ask a specialist within the Group to speak about a specific topic to
enhance the Board members’ understanding of issues that already
are, or may become, of particular importance to our business.
Meetings
In 2014, the Board held six meetings in person and nine addi-
tional meetings. In addition, the Board held a two-day strategy
session. From time to time, the Board may also take certain deci-
sions via circular resolution, unless a member asks that the matter
be discussed in a meeting and not decided upon by way of written
consent.
All members of the Board are expected to spend the nec-
essary time outside these meetings needed to discharge their
responsibilities appropriately. The Chairman calls the meeting with
sufficient notice and prepares an agenda for each meeting. How-
ever, any other Board member has the right to call an extraordinary
meeting, if deemed necessary. The Chairman has the discretion to

invite members of management or others to attend the meetings.
Generally, the members of the Executive Board attend part of the
meetings to ensure effective interaction with the Board. The Board
also holds separate private sessions without management present.
Minutes are kept of the proceedings and resolutions of the Board.
Meeting attendance
The members of the Board are encouraged to attend all meetings
of the Board and the committees on which they serve.
Meeting attendance

Chairman’s and

Board of
Governance
Audit
Compensation
Risk

Directors 1
Committee 2
Committee 3
Committee 4
Committee 5
in 2014

Total number of meetings held
15
10
18
10
7
   Number of members who missed no meetings
4
3
3
2
5
   Number of members who missed one meeting
7
1
2
0
1
   Number of members who missed two or more meetings
4
3
0
2
2
Meeting attendance, in %
90
85
98
83
89
1
The Board consisted of 13 members at the beginning of the year and at the end of the year, with 2 members joining the Board and 2 members leaving the Board as of the 2014 AGM.
2
The Chairman’s and Governance Committee consisted of six members at the beginning of the year and five members at the end of the year.
3
The Audit Committee consisted of four members at the beginning of the year and five members at the end of the year.
4
The Compensation Committee consisted of four members at the beginning and the end of the year.
5
The Risk Committee consisted of six members at the beginning of the year and seven members at the end of the year.
Mandates
Our Board members and Executive Board members may assume
board or executive level or other roles in companies and organi-
zations outside of the Group, which are collectively referred to
as mandates. The Compensation Ordinance sets out that com-
panies must include provisions in their articles of association, to
define the activities that fall within the scope of a mandate and
set limits on the number of mandates that board members and
executive management may hold. According to the Group’s AoA,
mandates include activities in the most senior executive and man-
agement bodies of listed companies and all other legal entities that
are obliged to obtain an entry in the Swiss commercial register or
a corresponding foreign register. Each member of the Board may
assume no more than four other mandates in listed companies and
no more than five mandates in other legal entities, including pri-
vate non-listed companies. Each member of the Executive Board
may assume no more than one other mandate in a listed com-
pany and no more than two other mandates in other legal entities.
The following mandates are exempt from this restriction: man-
dates in legal entities controlled by the Group, such as subsidiary
boards; mandates in legal entities that are exercised on behalf of
the Group, such as business and industry associations; and hon-
orary mandates in charitable legal entities. Board and Executive
Board members are each permitted to exercise a maximum of ten
mandates on behalf of the Group and a maximum of ten honorary
mandates in charitable legal entities.
No Board or Executive Board member holds mandates in
excess of the restrictions described above.
Independence
The Board consists solely of non-executive directors within the
Group, of which at least the majority must be determined to be
independent. In its independence determination, the Board takes
into account the factors set forth in the Corporate Governance
Guidelines, the OGR, the committee charters and applicable laws
and listing standards. Our independence standards are also peri-
odically measured against other emerging best practice standards.
The Chairman’s and Governance Committee performs an
annual assessment of the independence of each Board member
and reports its findings to the Board for the final determination of
independence of each individual member. The Board has applied
the independence criteria of the Swiss Code of Best Practice for
Corporate Governance and the q FINMA and the rules of the
NYSE and Nasdaq in determining the definition of independence.
In general, a director is considered independent if the director:
p is not, and has not been for the prior three years, employed as
an executive officer of the Group or any of its subsidiaries;
p is not, and has not been for the prior three years, an employee
or affiliate of our external auditor; and
p does not maintain a material direct or indirect business rela-
tionship with the Group or any of its subsidiaries.
Whether or not a relationship between the Group or any of its
subsidiaries and a member of the Board is considered material
depends in particular on the following factors:
p the volume and size of any transactions concluded in relation to
the financial status and credit standing of the Board member
concerned or the organization in which he or she is a partner,
significant shareholder or executive officer;
p the terms and conditions applied to such transactions in com-
parison to those applied to transactions with counterparties of
a similar credit standing;

176
p whether the transactions are subject to the same internal
approval processes and procedures as transactions that are
concluded with other counterparties;
p whether the transactions are performed in the ordinary course
of business; and
p whether the transactions are structured in such a way and on
such terms and conditions that the transaction could be con-
cluded with a third party on comparable terms and conditions.
For Board members serving on the Compensation Committee, the
independence determination considers all factors relevant to deter-
mining whether a director has a relationship with the Group that is
material to that director’s ability to be independent from manage-
ment in connection with the duties of a Compensation Committee
member, including, but not limited to:
p the source of any compensation of the Compensation Commit-
tee member, including any consulting, advisory or other com-
pensatory fees paid by the Group to such director; and
p whether the Compensation Committee member is affiliated
with the Group, any of its subsidiaries or any affiliates of any of
its subsidiaries.
Moreover, a Board member is not considered independent if the
Board member is, or has been at any time during the prior three
years, part of an interlocking directorate in which a member of
the Executive Board serves on the compensation committee of
another company that employs the Board member. The length
of tenure a Board member has served is not a criterion for inde-
pendence. Significant shareholder status is also not considered a
criterion for independence unless the shareholding exceeds 10%
of the Group’s share capital. Board members with immediate fam-
ily members who would not qualify as independent are also not
considered independent. In addition to measuring Board members
against the independence criteria, the Chairman’s and Governance
Committee also considers whether other commitments of an indi-
vidual Board member prevent the person from devoting enough
time to his or her Board mandate.
While the Group is not subject to such standards, the Board
acknowledges that some proxy advisors apply different standards
for assessing the independence of our Board members, including
the length of tenure a Board member has served, annual com-
pensation levels of Board members within a comparable range to
executive pay or a Board member’s former executive status further
back than three years.
Independence determination
As of December 31, 2014, 12 members of the Board were deter-
mined by the Board to be independent.
At the time of his election to the Board in 2010, Mr. Bin
Hamad J.J. Al Thani was determined not to be independent due
to the scope of various business relationships between the Group
and Qatar Investment Authority (QIA), a state-owned company
that has close ties to the Al Thani family, and between the Group
and the Al Thani family. The Group has determined that these
various business relationships could constitute a material business
relationship.
Chairman of the Board
The Chairman is a non-executive member of the Board, in accor-
dance with Swiss banking law, and performs his role on a full-time
basis, in line with the practice expected by our main regulator,
FINMA. The Chairman coordinates the work within the Board,
works with the committee chairmen to coordinate the tasks of the
committees and ensures that the Board members are provided
with the information relevant for performing their duties. In par-
ticular, the Chairman drives the Board agenda and key Board top-
ics, especially regarding the strategic development of the Group,
succession planning, the structure and organization of the Group,
corporate governance, as well as compensation and compensation
structure, including the performance evaluation and compensa-
tion of the CEO and the Executive Board. He chairs the Board,
the Chairman’s and Governance Committee and the Shareholder
Meetings and takes an active role in representing the Group to key
shareholders, investors, regulators and supervisors, industry asso-
ciations and other stakeholders. The Chairman has no executive
function within the Group. With the exception of the Chairman’s and
Governance Committee, the Chairman is not a member of any of the
Board’s standing committees. However, he may attend all or parts of
selected committee meetings as a guest without voting power.
Segregation of duties
In accordance with Swiss banking law, the Group operates under a
dual board structure, which strictly segregates the duties of super-
vision, which are the responsibility of the Board, from the duties of
management, which are the responsibility of the Executive Board.
The roles of the Chairman (non-executive) and the CEO (execu-
tive) are separate and carried out by two different people.
Vice-Chair
The Vice-Chair is a member of the Board and a designated deputy
to the Chairman. The Vice-Chair assists the Chairman by providing
support and advice to the Chairman, assuming the Chairman’s role
in the event of the Chairman’s absence or indisposition and leading
the Board accordingly. There may be one or more Vice-Chairs. As
of the date of the 2014 AGM, Noreen Doyle and Richard E. Thorn-
burgh were appointed as Vice-Chairs.
According to the Group’s OGR, the Board may appoint a Lead
Independent Director. If the Chairman is determined not to be
independent by the Board, the Board must appoint a Lead Inde-
pendent Director. The Lead Independent Director may convene
meetings without the Chairman being present. The Lead Inde-
pendent Director takes a leading role among the Board members,
particularly when issues between a non-independent Chairman
and the independent Board members arise (for example, when the
non-independent Chairman has a conflict of interest). In such role,
the Lead Independent Director ensures that the work of the Board

and Board-related processes continue to run smoothly. As of the
date of the 2014 AGM, Noreen Doyle was appointed as the Lead
Independent Director.
Board responsibilities
In accordance with the OGR, the Board delegates certain tasks
to Board committees and delegates the management of the com-
pany and the preparation and implementation of Board resolutions
to certain management bodies or executive officers to the extent
permitted by law, in particular Article 716a and 716b of the Swiss
Code of Obligations, and the AoA.
With responsibility for the overall direction, supervision and
control of the company, the Board regularly assesses our com-
petitive position and approves our strategic and financial plans. At
each ordinary meeting, the Board receives a status report on our
financial results, capital, funding and liquidity situation. In addition,
the Board receives, on a monthly basis, management informa-
tion packages, which provide detailed information on our perfor-
mance and financial status, as well as quarterly risk reports outlin-
ing recent developments and outlook scenarios. Management also
provides the Board members with regular updates on key issues
and significant events, as deemed appropriate or requested. In
order to appropriately discharge their responsibilities, the members
of the Board have access to all information concerning the Group.
The Board also reviews and approves significant changes in
our structure and organization and is actively involved in signifi-
cant projects including acquisitions, divestitures, investments and
other major projects. The Board and its committees are entitled,
without consulting with management and at the Group’s expense,
to engage external legal, financial or other advisors, as they deem
appropriate, with respect to any matters within their authority.
Governance of Group subsidiaries
The Board assumes oversight responsibility for establishing appro-
priate governance for Group subsidiaries. In accordance with the
OGR, the Board appoints or dismisses the chairperson and the
members of the boards of the most important subsidiaries of the
Group and approves their compensation. A policy naming the
subsidiaries in scope and providing guidelines for the nomination
and compensation process shall be reviewed by the Board on an
annual basis.
Board evaluation
The Board performs a self-assessment once a year, where it
reviews its own performance against the responsibilities listed in
its charter and the Board’s objectives and determines future objec-
tives, including any special focus objectives, and a work plan for
the coming year. The Chairman does not participate in the dis-
cussion of his own performance. As part of the self-assessment,
the Board evaluates its effectiveness with respect to a number of
different aspects, including board structure and composition, com-
munication and reporting, agenda setting and continuous improve-
ment. From time to time, the Board may also mandate an external
advisor to facilitate the evaluation process.
Board committees
At each Board meeting, the committee chairmen report to the
Board about the activities of the respective committees. In addi-
tion, the minutes and documentation of the committee meetings
are accessible to all Board members.
Chairman’s and Governance Committee
The Chairman’s and Governance Committee consists of the Chair-
man, the Vice-Chairs and the chairmen of the committees of
the Board and other members appointed by the Board. It may
include non-independent Board members. Our Chairman’s and
Governance Committee consists of five members, all of whom are
independent.
The Chairman’s and Governance Committee has its own char-
ter, which has been approved by the Board. It generally meets on a
monthly basis and the meetings are also attended by the CEO. It is
at the Chairman’s discretion to ask other members of management
or specialists to attend a meeting.
The Chairman’s and Governance Committee acts as an advisor
to the Chairman and supports him in the preparation of the Board
meetings. In addition, the Chairman’s and Governance Committee
is responsible for the development and review of corporate gover-
nance guidelines, which are then recommended to the Board for
approval. At least once annually, the Chairman’s and Governance
Committee evaluates the independence of the Board members
and reports its findings to the Board for final determination. The
Chairman’s and Governance Committee is also responsible for
identifying, evaluating, recruiting and nominating new Board mem-
bers in accordance with the Group’s internal criteria, subject to
applicable laws and regulations.
In addition, the Chairman’s and Governance Committee guides
the Board’s annual performance assessment of the Chairman,
the CEO and the members of the Executive Board. The Chair-
man’s and Governance Committee proposes to the Board the
appointment, promotion, dismissal or replacement of members of
the Executive Board. The Chairman’s and Governance Committee
also reviews succession plans for senior executive positions in the
Group with the Chairman and the CEO.
The Chairman’s and Governance Committee performs a self-
assessment once a year, where it reviews its own performance
against the responsibilities listed in the charter and the commit-
tee’s objectives and determines any special focus objectives for
the coming year.

178
Audit Committee
The Audit Committee consists of at least three members, all of
whom must be independent. The chairman of the Risk Commit-
tee is generally appointed as one of the members of the Audit
Committee. Our Audit Committee consists of five members, all of
whom are independent.
The Audit Committee has its own charter, which has been
approved by the Board. The members of the Audit Committee are
subject to independence requirements in addition to those required
of other Board members. None of the Audit Committee members
may be an affiliated person of the Group or may, directly or indi-
rectly, accept any consulting, advisory or other compensatory fees
from us other than their regular compensation as members of the
Board and its committees. The Audit Committee charter stipulates
that all Audit Committee members must be financially literate. In
addition, they may not serve on the Audit Committee of more than
two other companies, unless the Board deems that such member-
ship would not impair their ability to serve on our Audit Committee.
In addition, the US Securities and Exchange Commission
(SEC) requires disclosure about whether a member of the Audit
Committee is an audit committee financial expert within the mean-
ing of SOX. The Board has determined that John Tiner is an audit
committee financial expert.
Pursuant to its charter, the Audit Committee holds meetings at
least once each quarter, prior to the publication of our consolidated
financial statements. Typically, the Audit Committee convenes for
a number of additional meetings and workshops throughout the
year. The meetings are attended by management representatives,
as appropriate, the Head of Internal Audit and senior representa-
tives of the external auditor. A private session with Internal Audit
and the external auditors is regularly scheduled to provide them
with an opportunity to discuss issues with the Audit Committee
without management being present. The Head of Internal Audit
reports directly to the Audit Committee chairman.
The primary function of the Audit Committee is to assist the
Board in fulfilling its oversight role by:
p monitoring and assessing the integrity of the consolidated
financial statements as well as disclosures of the financial con-
dition, results of operations and cash flows;
p monitoring the adequacy of the financial accounting and
reporting processes and the effectiveness of internal controls
over financial reporting;
p monitoring processes designed to ensure compliance by the
Group in all significant respects with legal and regulatory
requirements, including disclosure controls and procedures;
p monitoring the adequacy of the management of operational
risks, jointly with the Risk Committee, including assessing the
effectiveness of internal controls that go beyond the area of
financial reporting;
p monitoring the adequacy of the management of reputational
risks, jointly with the Risk Committee; and
p monitoring the qualifications, independence and performance
of the external auditors and of Internal Audit.
The Audit Committee is regularly informed about significant proj-
ects aimed at further improving processes and receives regular
updates on major litigation matters as well as significant regula-
tory and compliance matters. The Audit Committee also oversees
the work of our external auditor and pre-approves the retention of,
and fees paid to, the external auditor for all audit and non-audit
services. For this purpose, it has developed and approved a policy
that is designed to help ensure that the independence of the exter-
nal auditor is maintained at all times. The policy limits the scope of
services that the external auditor may provide to us or any of our
subsidiaries in connection with its audit and stipulates certain per-
missible types of non-audit services, including audit-related ser-
vices, tax services and other services that have been pre-approved
by the Audit Committee. The Audit Committee pre-approves all
other services on a case-by-case basis. The external auditor is
required to report periodically to the Audit Committee about the
scope of the services it has provided and the fees for the services
it has performed to date. Furthermore, the Audit Committee has
established procedures for the receipt, retention and treatment
of complaints regarding accounting, internal controls or auditing
matters, including a whistleblower hotline to provide the option to
report complaints on a confidential, anonymous basis.
The Audit Committee performs a self-assessment once a year,
where it reviews its own performance against the responsibilities
listed in the charter and the committee’s objectives and deter-
mines any special focus objectives for the coming year.
Compensation Committee
The Compensation Committee consists of at least three mem-
bers of the Board, all of whom must be independent. Our Com-
pensation Committee consists of four members, all of whom are
independent.
The Compensation Committee has its own charter, which has
been approved by the Board. Pursuant to its charter, the Compen-
sation Committee holds at least four meetings per year. Additional
meetings may be scheduled at any time. The Compensation Com-
mittee’s duties and responsibilities include reviewing the Group’s
compensation policy, establishing new compensation plans or
amending existing plans and recommending them to the Board for
approval, as well as reviewing the performance of the businesses
and the respective management teams and determining and/or
recommending to the Board for approval the overall variable com-
pensation pools. The Compensation Committee proposes individ-
ual compensation for the Board members to the Board; discusses
and recommends to the Board a proposal for the CEO’s compen-
sation; based on proposals by the CEO, discusses and recom-
mends to the Board the Executive Board members’ compensation;
and reviews and recommends to the Board the compensation for
individuals being considered for an Executive Board position. In
accordance with the Compensation Ordinance, all such decisions
are subject to AGM approval. The meetings are attended by man-
agement representatives, as appropriate.

The Compensation Committee is authorized to retain out-
side advisors, at the Group’s expense, for the purpose of provid-
ing guidance to the Compensation Committee as it carries out
its responsibilities. Prior to their appointment, the Compensation
Committee conducts an independence assessment of the advisors
pursuant to the rules of the SEC and the listing standards of the
NYSE and the Nasdaq.
The Compensation Committee performs a self-assessment
once a year, where it reviews its own performance against the
responsibilities listed in the charter and the committee’s objectives
and determines any special focus objectives for the coming year.
u Refer to “Compensation Committee” in Compensation – Group compensation
for information on our compensation approach, principles and objectives and out-
side advisors.
Risk Committee
The Risk Committee consists of at least three members. It may
include non-independent members. The chairman of the Audit
Committee is generally appointed as one of the members of the
Risk Committee. Our Risk Committee consists of seven members,
all of whom are independent.
The Risk Committee has its own charter, which has been
approved by the Board. Pursuant to its charter, the Risk Com-
mittee holds at least four meetings a year. In addition, the Risk
Committee usually convenes for additional meetings throughout
the year in order to appropriately discharge its responsibilities.
The meetings are attended by management representatives, as
appropriate.
The Risk Committee is responsible for assisting the Board in
fulfilling its oversight responsibilities by providing guidance regard-
ing risk governance and the development of the risk profile and
capital adequacy, including the regular review of major risk expo-
sures and overall risk limits. The main duties and responsibilities of
the Risk Committee include:
p reviewing and assessing the integrity and adequacy of the risk
management function of the Group, in particular as it relates to
market, credit and liquidity and funding risks;
p reviewing the adequacy of the Group’s capital and its allocation
to the Group’s businesses;
p reviewing certain risk limits and regular risk reports and making
recommendations to the Board;
p reviewing and assessing the Group’s risk appetite framework;
p reviewing and assessing the adequacy of the management of
reputational risks, jointly with the Audit Committee;
p reviewing and assessing the adequacy of the management of
operational risks, including the adequacy of the internal control
system, jointly with the Audit Committee; and
p reviewing the Group’s policy in respect of corporate responsi-
bility and sustainable development.
The Risk Committee is regularly informed about major initiatives
aimed at responding to regulatory change and further improv-
ing risk management across the Group, including organizational
changes, changes to risk measurement methods and upgrades to
risk systems infrastructure.
The Risk Committee performs a self-assessment once a year,
where it reviews its own performance against the responsibilities
listed in the charter and the committee’s objectives and deter-
mines any special focus objectives for the coming year.
Banking relationships and related party
transactions
Banking relationships
The Group is a global financial services provider. Many of the mem-
bers of the Board and the Executive Board or companies associ-
ated with them maintain banking relationships with us. The Group
or any of its banking subsidiaries may from time to time enter into
financing and other banking agreements with companies in which
current members of the Board or the Executive Board have a sig-
nificant influence as defined by the SEC, such as holding executive
and/or board level roles in these companies. With the exception
of the transactions described below, relationships with members
of the Board or the Executive Board and such companies are in
the ordinary course of business and are entered into on an arm’s
length basis. Also, unless otherwise noted, all loans to members of
the Board, members of the Executive Board or companies asso-
ciated with them were made in the ordinary course of business,
were made on substantially the same terms, including interest
rates and collateral, as those prevailing at the time for comparable
transactions with other persons, and did not involve more than the
normal risk of collectability or present other unfavorable features.
As of December 31, 2014, 2013 and 2012, there was no loan
exposure to such related parties that was not made in the ordinary
course of business and at prevailing market conditions.
u Refer to “Board shareholdings and loans” and “Executive Board shareholdings
and loans” in Compensation – Board of Directors Compensation and – Executive
Board Compensation, respectively, for a list of the outstanding loans to members
of the Board and the Executive Board.
Related party transactions
Exchange of tier 1 capital instruments
In February 2011, we entered into definitive agreements with
entities affiliated with QIA and The Olayan Group, each of which
has significant holdings of Group shares and other Group finan-
cial products, to issue tier 1 high-trigger capital instruments (new
Tier 1 Capital Notes). Under the agreements, QIA and The Olayan
Group agreed to purchase USD 3.45 billion new Tier 1 Capital
Notes and CHF 2.5 billion new Tier 1 Capital Notes in exchange
for their holdings of USD 3.45 billion 11% tier 1 capital notes and
CHF 2.5 billion 10% tier 1 capital notes issued in 2008 (together,
the Tier 1 Capital Notes) or, in the event that the Tier 1 Capital
Notes had been redeemed in full, for cash.
In July 2012, we entered into an amendment agreement
with the entity affiliated with The Olayan Group to acceler-
ate the exchange of USD 1.725 billion of the 11% tier 1 capital
notes for an equivalent principal amount of new Tier 1 Capital
Notes. In October 2013, based on the prior agreement with an

180
entity affiliated with QIA, we exchanged such entity’s holding of
USD 1.72 billion 11% tier 1 capital notes and CHF 2.5 billion 10%
tier 1 capital notes into equivalent principal amounts of new Tier 1
Capital Notes. These transactions were approved by FINMA.
Under their terms, the new Tier 1 Capital Notes will be con-
verted into our ordinary shares if our reported common equity
tier 1 (CET1) ratio, as determined under q Basel Committee on
Banking Supervision regulations as of the end of any calendar
quarter, falls below 7% (or any lower applicable minimum thresh-
old), unless FINMA, at our request, has agreed on or prior to the
publication of our quarterly results that actions, circumstances or
events have restored, or will imminently restore, the ratio to above
the applicable threshold. The new Tier 1 Capital Notes will also be
converted if FINMA determines that conversion is necessary, or
that we require public sector capital support, to prevent us from
becoming insolvent, bankrupt or unable to pay a material amount
of our debts, or other similar circumstances. In addition, conver-
sion of the new Tier 1 Capital Notes issued to the entities affili-
ated with The Olayan Group will be triggered if, in the event of
a request by FINMA for an interim report prior to the end of any
calendar quarter, our reported CET1 ratio, as of the end of any
such interim period, falls below 5%. The conversion price will be
the higher of a given floor price per share (subject to customary
adjustments) or the daily volume weighted average sales price of
our ordinary shares over a five-day period preceding the notice
of conversion. In connection with the July 2012 exchange, the
conversion floor price of the new Tier 1 Capital Notes delivered in
the exchange as well as the remaining new Tier 1 Capital Notes
that were exchanged in October 2013 was adjusted to match
the conversion price of the mandatory and contingent convert-
ible securities (MACCS) described below. The new Tier 1 Capital
Notes are deeply subordinated, perpetual and callable by us no
earlier than 2018 and in certain other circumstances with FINMA
approval. Interest is payable on the USD 3.45 billion new Tier 1
Capital Notes and CHF 2.5 billion new Tier 1 Capital Notes at
fixed rates of 9.5% and 9.0%, respectively, and will reset after
the first call date. Interest payments will generally be discretionary
(unless triggered), subject to suspension in certain circumstances
and non-cumulative.
At the time of the original transaction, the Group determined
that this was a material transaction and deemed QIA and The
Olayan Group to be related parties of our current Board mem-
ber Mr. Bin Hamad J.J. Al Thani and our then Board member
Mr. Syriani, respectively, for purposes of evaluating the terms and
corporate governance of the original transaction. At that time, the
Board (except for Mr. Bin Hamad J.J. Al Thani and Mr. Syriani,
who abstained from participating in the determination process)
determined that the terms of the original transaction, given its size,
the nature of the contingent capital instrument, for which there
was no established market, and the terms of the Tier 1 Capital
Notes issued in 2008 and held by QIA and The Olayan Group,
were fair. As of April 26, 2013, Mr. Syriani retired from the Board
and no other person affiliated with The Olayan Group has been
elected as a Board member.
Settlement of mandatory and contingent convertible
securities
In July 2012, we issued CHF 3.8 billion MACCS that mandato-
rily converted into 233.5 million shares at a conversion price of
CHF 16.29 per share on March 29, 2013. The settlement and
delivery of shares occurred on April 8, 2013. Strategic and institu-
tional investors purchased CHF 2.0 billion of MACCS and share-
holders exercised preferential subscription rights for CHF 1.8 bil-
lion of MACCS. The conversion price corresponded to 95% of the
volume weighted-average market price for the two trading days
preceding the transaction. Investors in the MACCS included enti-
ties affiliated with QIA and The Olayan Group, which also have
been deemed by the Group to be related parties of our current
Board member Mr. Bin Hamad J.J. Al Thani and our then Board
member Mr. Syriani. In addition to QIA and The Olayan Group, a
number of other investors of the Group purchased the MACCS,
including Norges Bank and the Capital Group Companies, Inc.,
which like QIA and The Olayan Group, have significant holdings of
Group shares. The terms and conditions for the conversion of the
MACCS were equally applicable to all purchasers.
Plus Bonds
In 2013, we awarded Plus Bonds to certain employees as deferred
variable compensation in respect of their 2012 compensation. We
provided members of the Executive Board who did not participate
in the structuring of the Plus Bonds the opportunity to invest their
own funds in instruments with substantially the same terms as
the Plus Bond awards granted to employees. As a result, certain
Executive Board members acquired an aggregate of CHF 9 million
in Plus Bond instruments in February 2013.
u Refer to “Plus Bond awards” in Compensation – Discontinued compensation
plans for further information.
u Refer to “Note 29 – Related parties” in V – Consolidated financial statements
– Credit Suisse Group for further information on related party transactions.

Biographies of the Board members
Urs Rohner
Born 1959
Swiss Citizen
Board member since 2009
Chairman of the Board
Professional history
2004–present Credit Suisse
Chairman of the Board and the Chairman‘s and Governance
Committee (2011–present)
Vice-Chair of the Board and member of the Chairman‘s and
Governance Committee (2009–2011)
Member of the Risk Committee (2009–2011)
COO of the Bank (2006–2009)
General Counsel of the Bank (2005–2009)
General Counsel of the Group (2004–2009)
Member of the Bank Executive Board (2005–2009)
Member of the Group Executive Board (2004–2009)
2000–2004 ProSiebenSat.1 Media AG,
Chairman of the Executive Board and CEO
1983–1999 Lenz Staehelin
Partner (1992–1999)
Attorney (1983–1988; 1990–1992)
1988–1989 Sullivan Cromwell LLP, New York, attorney
Education
1990 Admission to the bar of the State of New York
1986 Admission to the bar of the Canton of Zurich
1983 Degree in Law, University of Zurich, Switzerland
Other activities and functions
GlaxoSmithKline plc, board member
University of Zurich Department of Economics, chairman of the advisory board
International Institute for Management Development (IMD) foundation, board of
trustees member
Swiss University Sports Foundation, board of trustees member
Mr. Rohner serves as a board, advisory board or board of trustees member in
the following organizations in his capacity as Chairman of the Group: Swiss
Bankers Association, Swiss Finance Council, Economiesuisse, Avenir Suisse,
Alfred Escher Foundation, Lucerne Festival, European Banking Group,
European Financial Services Round Table, Institute International d’Etudes
Bancaires, Institute of International Finance (IIF) and International Business
Leaders Advisory Council of the Mayor of Beijing.
Born 1982
Qatari Citizen
Member of the Board
2004–present Qatar Islamic Bank
Chairman of the board (2005–present)
Member of the board (2004–present)
1998–present Al Mirqab Capital LLC
CEO (2007–present)
Member of senior management (1998–2007)
Education
1998 Graduated as an Officer Cadet from the
Royal Military Academy in England
Q-RE LLC, chairman
Damaan Islamic Insurance Co. (BEEMA), chairman
QInvest, chairman
Qatar Insurance Company, board member
Qatar Navigation Company, board member

182
Iris Bohnet
Born 1966
Swiss Citizen
Member of the Compensation Committee (2012–present)
1998–present Harvard Kennedy School
Director of the Women and Public Policy Program
(2008–present)
Professor of public policy (2006–present)
Academic dean (2011–2014)
Associate professor of public policy (2003–2006)
Assistant professor of public policy (1998–2003)
1997–1998 Haas School of Business, University of California at Berkeley,
visiting scholar
Education
1997 Doctorate in Economics, University of Zurich, Switzerland
1992 Master’s degree in Economic History, Economics and Political
Science, University of Zurich, Switzerland
University of Lucerne, board member
Vienna University of Economics and Business Administration, advisory board
member
Decision Making and Negotiations Journal, advisory board member
Negotiations Center, University of Texas at Dallas, board member
Global Agenda Council on Behavior, member
Economic Dividends for Gender Equality (EDGE), advisory board member
Noreen Doyle
Born 1949
Irish and US Citizen
Vice-Chair of the Board
Vice-Chair and Lead Independent Director of the Board
(2014–present)
Member of the Chairman’s and Governance Committee
(2014–present)
Member of the Audit Committee (2014–present)
Non-executive director of Credit Suisse International and
Credit Suisse Securities (Europe) Limited (two of the
Group’s UK subsidiaries) (2011–present); chair of the
boards (2013–present); and chair of the audit committees
(2011–2012)
Member of the Risk Committee (2009–2014; 2004–2007)
Member of the Audit Committee (2007–2009)
1992–2005 European Bank for Reconstruction and Development (EBRD)
First vice president and head of banking (2001–2005)
Deputy vice president finance and director of risk management
(1997–2001)
Chief credit officer and director of syndications (1994–1997)
Head of syndications (1992–1994)
1974–1992 Bankers Trust Company, Houston, New York and London
Managing director, European Structured Sales (1990–1992)
Managing director, Structured Sales group (1986–1990)
Division manager, Energy Finance group (1983–1986)
Various positions in New York and Houston (1974–1983)
Education
1974 MBA in Finance, Tuck at Dartmouth College, New Hampshire
1971 BA in Mathematics, The College of Mount Saint Vincent,
New York
Newmont Mining Corporation, board member
Macquarie Infrastructure Funds, advisory panel member
Sapphire Partners, advisory board member
Marymount International School, London, chair of the board of governors
Women in Banking and Finance in London, patron
Tuck European Advisory Board, member

Jean-Daniel Gerber
Born 1946
Swiss Citizen
2004–2011 Swiss Federal Council, Director of the State Secretariat for
Economic Affairs (SECO)
1998–2004 Swiss Federal Office of Migration, director
1993–1997 World Bank Group, Washington D.C.,
executive director and dean (1997)
1991–1992 Swiss Federal Office for Foreign Economic Affairs, vice director
and minister, head of the Development Policy Service
1987–1990 Swiss Embassy in Washington D.C., minister and head of the
Economic, Financial and Commercial division
1973–1986 Various positions at the Swiss Federal Office for Foreign
Economic Affairs (1973–1975; 1981–1986) and Member of
the Swiss delegation to International Economics Organizations
(1976–1980)
Education
2007 Honorary doctorate, Economics and Social Sciences,
University of Bern, Switzerland
1972 Degree in Economics, University of Bern, Switzerland
Lonza Group AG, board member
Swiss Investment Fund for Emerging Markets, chairman of the board and
investment committee
Swiss Society for Public Good, president
Japan Tobacco International (JTI) Foundation, board member
AO Alliance Foundation, member
Andreas N. Koopmann
Born 1951
Swiss and French Citizen
Member of the Risk Committee (2009–present)
1982–2009 Bobst Group S.A., Lausanne
Group CEO (1995–2009)
Member of the board (1998–2002)
Executive Vice President (1994–1995)
Member of the Group Executive Committee, head of
manufacturing (1991–1994)
Management positions in engineering and manufacturing
(1982–1991)
1979–1982 Bruno Piatti AG and Motor Columbus AG, various positions
Education
1978 MBA, International Institute for Management Development,
Switzerland
1976 Master’s degree in Mechanical Engineering, Swiss Federal
Institute of Technology, Switzerland
Nestlé SA, board member and vice-chairman
Georg Fischer AG, chairman of the board
CSD Group, board member
Sonceboz SA, board member
Spencer Stuart, Switzerland, advisory board member
Economiesuisse, board member
EPFL, Lausanne, Switzerland, strategic advisory board member
EPFL+ Foundation, member of the board of trustees

184
Jean Lanier
Born 1946
French Citizen
Chairman of the Compensation Committee (2013–present)
(2013–present)
1990–2004 Euler Hermes Group, Paris
Chairman of the managing board and group CEO (1998–2004)
Chairman of the boards of principal subsidiaries (1998–2004)
Managing director of Euler Group (1997–1998)
COO and managing director of SFAC (subsequently Euler
Hermes SFAC) (1990–1997)
1988–1990 Pargesa Group, Paris and Geneva, managing director
1983–1989 Lambert Brussells Capital Corporation, New York, president
1970–1983 Paribas Group, various positions, among others: senior vice
president of the finance division and senior executive for North
America
Education
1970 Master of Science in Operations Research and Finance,
Cornell University, New York
1969 Master’s degree, Engineering, Ecole Centrale des Arts et
Manufactures, Paris
Swiss RE Europe SA, Swiss RE International SE and Swiss RE Europe
Holdings SA (subsidiaries of Swiss Re AG), chairman of the board
La Fondation Internationale de l’Arche, chairman of the board
Friends of l’Arche Long Island, chairman of the board
Association Jean Vanier, board member
Kai S. Nargolwala
Born 1950
Singapore Citizen
Non-executive chairman of Credit Suisse’s Asia-Pacific region
(2010–2011)
Member of the Executive Board (2008–2010)
CEO of Credit Suisse Asia Pacific region (2008–2010)
1998–2007 Standard Chartered plc, main board executive director
1976–1995 Bank of America
Group executive vice president and head of Asia Wholesale
Banking group in Hong Kong (1990–1995)
Head of High Technology Industry group in San Francisco and
New York (1984–1990)
Various management and other positions in the UK, the US and
Asia (1976–1984)
1970–1976 Peat Marwick Mitchell Co., London, accountant
Education
1974 Fellow of the Institute of Chartered Accountants (FCA),
England and Wales
1969 BA in Economics, University of Delhi
Prudential plc, member of the board
Singapore Telecommunications Ltd., board member and
lead independent director
PSA International Pte. Ltd. Singapore, board member
Clifford Capital Pte. Ltd., director and non-executive chairman
Monetary Authority of Singapore,
Singapore Capital Markets Committee member
Casino Regulatory Authority in Singapore, board member
Duke-NUS Graduate Medical School, Singapore,
chairman of the governing board

Anton van Rossum
Born 1945
Dutch Citizen
Member of the Compensation Committee (2005–2008)
2000–2004 Fortis Inc.
Chairman of the board, Fortis Inc. (New York)
CEO and board member, Fortis (Belgium)
Chairman of the boards of principal subsidiaries (Belgium)
1972–2000 McKinsey and Company
Director of McKinsey Belgium (1986–2000)
Principal at McKinsey, Netherlands and Belgium (1979–1986)
Various positions in the Netherlands and Scandinavia
(1972–1979)
Education
1969 Master’s degree, Economics and Business Administration,
Erasmus University, Rotterdam
1965 Bachelor’s degree, Economics and Business Administration,
Erasmus University, Rotterdam
Munich Re AG, member of the supervisory board
Royal Vopak NV, Rotterdam, chairman of the supervisory board
Netherlands Economics Institute, Rotterdam, chairman of the board of trustees
Rotterdam School of Management, chairman of the supervisory board
Severin Schwan
Born 1967
Austrian and German Citizen
1993–present Roche Group
CEO (2008–present)
CEO, Division Roche Diagnostics (2006–2008)
Head Asia Pacific Region, Roche Diagnostics Singapore
(2004–2006)
Head Global Finance Services, Roche Diagnostics Basel
(2000–2004)
Various management and other positions with Roche Germany,
Belgium and Switzerland (1993–2000)
Education
1993 Doctor of Law, University of Innsbruck, Austria
1991 Master’s degrees in Economics and Law,
University of Innsbruck, Austria
Roche Holding Ltd., board member
European Round Table for Industrialists, member
International Business Leaders Advisory Council for the
Mayor of Shanghai, member

186
Richard E. Thornburgh
Born 1952
US Citizen
Vice-Chair of the Board
Vice-Chair (2014–present)
Non-executive director of Credit Suisse International and Credit
Suisse Securities (Europe) Limited – two of the Group’s UK
subsidiaries (2013–present)
Chairman of the Risk Committee (2009–present)
(2009–present)
Member of the Group Executive Board in various executive
roles including Group CRO, Group CFO and CFO Investment
Banking (1997–2005)
Chief financial and administrative officer and member of the
executive board of Credit Suisse First Boston (1995–1996)
Began investment banking career in New York with The First
Boston Corporation (predecessor firm of Credit Suisse
First Boston)
2006–present Corsair Capital LLC, New York, vice-chairman
Education
2009 Honorary Doctorate, Commercial Sciences,
University of Cincinnati, Ohio
1976 MBA Finance, Harvard University, Cambridge, Massachusetts
1974 BBA Finance, University of Cincinnati, Ohio
McGraw Hill Financial, board member
Reynolds American Inc., board member
New Star Financial Inc., board member and lead director
CapStar Bank, board member
University of Cincinnati, investment committee member
University of Cincinnati Foundation, executive committee member
Convent of the Sacred Heart, trustee and investment committee member
St. Xavier Hight School, trustee and finance committee member
Sebastian Thrun
Born 1967
German and US Citizen
2012–present Udacity, co-founder and CEO
2007–2014 Google Corporation, Google Fellow and vice president
2003–present Stanford University
Research Professor (2011–present)
Professor (2003–2011)
1995–2003 Carnegie Mellon University, Associate Professor
Education
1995 Doctorate in Computer Science and Statistics,
University of Bonn, Germany
1993 Masters in Computer Science, University of Bonn, Germany
1988 Degree in Computer Science, University of Hildesheim,
Germany
Robotics Science and Systems Foundation, member and treasurer

John Tiner
Born 1957
British Citizen
Chairman of the Audit Committee (2011–present)
(2011–present)
2008–2013 Resolution Operations LLP, CEO
2001–2007 Financial Services Authority (FSA)
CEO (2003–2007)
Managing director of the investment, insurance and consumer
directorate (2001–2003)
1976–2001 Arthur Andersen, UK
Managing partner, UK Business Consulting (1997–2001)
Managing partner, Worldwide Financial Services practice
(1997–2001)
Head of UK Financial Services practice (1993–1997)
Partner in banking and capital markets (1988–1997)
Auditor and consultant, Tansley Witt
(later Arthur Anderson UK) (1976–1988)
Education
2010 Honorary Doctor of Letters, Kingston University, London
1980 UK Chartered Accountant, Institute of Chartered Accountants
in England and Wales
Corsair Capital LLC, advisory board member
The Urology Foundation, chairman
Honorary Chairman of Credit Suisse Group
Rainer E. Gut
Born 1932
Swiss Citizen
Rainer E. Gut was appointed Honorary Chairman of the Group in
2000 after he retired as Chairman, a position he had held since
1986. Mr. Gut was a member of the board of Nestlé SA, Vevey,
from 1981 to 2005, where he was vice-chairman from 1991 to
2000 and chairman from 2000 to 2005.
As Honorary Chairman, Mr. Gut does not have any function in
the governance of the Group and does not attend the meetings of
the Board.
Secretaries of the Board
Pierre Schreiber
Joan E. Belzer

188
Executive Board
Members of the Executive Board
The Executive Board is responsible for the day-to-day operational
management of the Group. It develops and implements the strate-
gic business plans for the Group overall as well as for the principal
businesses, subject to approval by the Board. It further reviews
and coordinates significant initiatives, projects and business devel-
opments in the divisions, regions and in the Shared Services func-
tions and establishes Group-wide policies. The composition of the
Executive Board of the Group and the Bank is identical.
Effective October 17, 2014, Eric Varvel was appointed as
Chairman Asia Pacific and Middle East and stepped down from
the Executive Board and his position as joint head of the Invest-
ment Banking division. James L. Amine and Timothy P. O’Hara
were appointed to the Executive Board to jointly lead the Invest-
ment Banking division with Gaël de Boissard. James L. Amine will
continue to have responsibility for the investment banking depart-
ment, while Timothy P. O’Hara will continue to head the equi-
ties business and his role as President and CEO of Credit Suisse
Securities USA remains unchanged. Gaël de Boissard will con-
tinue to head the fixed income business, and his role as regional
CEO of EMEA remains unchanged.
On March 10, 2015, we announced that the Board has
appointed Tidjane Thiam as the new CEO of the Group. He will
take over this position from Brady W. Dougan, who will step down
at the end of June 2015, after eight years as the CEO of the
Group. Tidjane Thiam currently is Group Chief Executive of Pru-
dential plc, a London-based international financial services group
with operations in the US, Asia, Europe and Latin America.
The size of the Executive Board increased from nine to ten
members during 2014.
Members of the Executive Board

Executive Board

member since
Role
December 31, 2014

Brady W. Dougan, Chief Executive Officer
2003
Group CEO
James L. Amine, Joint Head of Investment Banking 1
2014
Divisional Head
Gaël de Boissard, Joint Head of Investment Banking and Regional CEO EMEA
2013
Divisional Regional Head
Romeo Cerutti, General Counsel
2009
Shared Services Head
David R. Mathers, Chief Financial Officer and Head of IT and Operations
2010
Hans-Ulrich Meister, Joint Head of Private Banking Wealth Management and Regional CEO Switzerland
2008
Joachim Oechslin, Chief Risk Officer
2014
Timothy P. O’Hara, Joint Head of Investment Banking 1
2014
Divisional Head
Robert S. Shafir, Joint Head of Private Banking Wealth Management and Regional CEO Americas
2007
Pamela A. Thomas-Graham, Chief Marketing and Talent Officer

and Head of Private Banking Wealth Management New Markets
2010
1
Appointed on October 17, 2014 as a new Executive Board member with immediate effect.
Executive Board mandates
Our Executive Board members may, similar to our Board members,
assume board or executive level or other roles in companies and
organizations outside of the Group, which are collectively referred
to as mandates. According to the Group’s AoA, the number of
mandates Executive Board members may hold in listed companies
and other organizations outside of the Group is subject to certain
restrictions, in order to comply with the Compensation Ordinance
and to ensure that our Executive Board members dedicate suffi-
cient time to fulfil their executive roles.
No Executive Board member holds mandates in excess of the
restrictions as set forth in our AoA.
u Refer to “Mandates” for further information.

Biographies of the Executive Board members
Brady W. Dougan
Born 1959
US Citizen
Member since 2003
Chief Executive Officer
Chief Executive Officer of the Group (2007–present)
CEO of Investment Banking and Americas (2006–2007)
Member of the Committee of the Group Executive Board
(2004–2005)
CEO of Credit Suisse First Boston (2004–2005)
Co-president of Institutional Securities of
Credit Suisse First Boston (2002–2004)
Member of the Executive Board of
Global head of the Securities Division of
Head of Equities of Credit Suisse First Boston (1996–2001)
Various functions within Credit Suisse First Boston
(1990–1996)
Prior to 1990 Bankers Trust, derivatives group
Education
1982 MBA in Finance, University of Chicago, Illinois
1981 BA in Economics, University of Chicago, Illinois
Humacyte Inc., board member
University of Chicago, board of trustees member
Barbara Dougan Foundation, director
James L. Amine
Born 1959
US Citizen
Member since 2014
Joint Head of Investment Banking
Joint Head of Investment Banking, responsible for the
Investment Banking Department (2014–present)
Head of Investment Banking Department (2012–present)
Co-Head of Investment Banking Department, responsible for
the Americas and Asia Pacific (2010–2012)
Co-Head of Investment Banking Department, responsible for
EMEA and Asia Pacific and Head of Global Market Solutions
Group (2008–2010)
Head of European Global Markets Solutions Group and
Co-Head of Global Leveraged Finance (2005–2008)
Head of European Leveraged Finance (1999–2000;
2003–2005), Co-Head (2000–2003)
Various functions within High-Yield Capital Markets of Credit
Suisse First Boston (1997–1999)
Prior to 1997 Cravath, Swaine Moore, attorney
Education
1984 JD, Harvard Law School
1981 BA, Brown University
Harvard Law School, dean’s advisory board member
Caramoor Center for Music and the Arts, board member
Leadership Committee of Lincoln Center Corporate Fund, member

190
Gaël de Boissard
Born 1967
French Citizen
Member since 2013
Regional CEO EMEA
Joint Head of Investment Banking, responsible for the Fixed
Income business (2013–present)
Regional CEO EMEA (2013–present)
Co-Head of Global Securities, Investment Banking
(2008–2012)
Head of Interest Rate Products, Europe and Asia, Investment
Banking (2001–2007)
1990–2001 JPMorgan Chase
Member of European Management Committee (1998–2001)
Head of European Rates (1997–1998)
Head of European Government Bond Trading (1994–1997)
Various positions in fixed income (1990–1994)
Education
1990 Degree in Mathematics and Civil Engineering,
Ecole Polytechnique, Palaiseau, France
1989 Degree in Russian, University of Volgograd
Romeo Cerutti
Born 1962
Swiss and Italian Citizen
Member since 2009
General Counsel
General Counsel (2009–present)
Global Co-Head of Compliance, Bank (2008–2009)
General Counsel, Private Banking division (2006–2009)
1999–2006 Lombard Odier Darier Hentsch Cie
Partner of the Group Holding (2004–2006)
Head of Corporate Finance (1999–2004)
1995–1999 Homburger Rechtsanwälte, Zurich, attorney-at-law
1993–1995 Latham and Watkins, Los Angeles, attorney-at-law
Education
1998 Post-doctorate degree in Law (Habilitation),
University of Fribourg
1992 Admission to the bar of the State of California
1992 Master of Law (LLM), University of California, Los Angeles
1990 Doctorate in Law, University of Fribourg
1989 Admission to the bar of the Canton of Zurich
1986 Master in Law (lic.iur.), University of Fribourg
University of Fribourg, board of trustees member
Association Friends of the Zurich Art Museum, board member

David R. Mathers
Born 1965
British Citizen
Member since 2010
Chief Financial Officer
Head of IT and Operations (2012–present)
Chief Financial Officer (2010–present)
Head of Finance and COO of Investment Banking
(2007–2010)
Senior positions within Credit Suisse’s Equity business,
including Director of European Research and Co-Head of
European Equities (1998–2007)
1987–1998 HSBC
Global head of equity research (1997–1998)
Research analyst, HSBC James Capel (1987–1997)
Education
1991 MA in Natural Sciences, University of Cambridge, England
1987 BA in Natural Sciences, University of Cambridge, England
Member of the Council of the British-Swiss Chamber of Commerce
Member of the European CFO Network
Sponsor of academic awards and research grants at Robinson College,
Cambridge
Hans-Ulrich Meister
Born 1959
Swiss Citizen
Member since 2008
Joint Head of Private Banking
Wealth Management
Regional CEO Switzerland
Joint Head of Private Banking Wealth Management
(2012–present)
Regional CEO Switzerland (2008–present)
CEO of Private Banking (2011–2012)
Chairman of Clariden Leu AG (2011–2012)
Board member of Clariden Leu AG (2008–2012)
Head of Private Business Banking Switzerland
(2008–2011)
1983–2007 UBS
Member of the group management board (2004–2007)
Head of private and business banking (2005–2007)
Head of large corporates and multinationals (2003–2005)
Wealth management USA, New York (2002–2003)
Head of corporate banking region Zurich (1999–2002)
Various functions (1983–1999)
Education
2000/2002 Advanced Management programs at Wharton School,
University of Pennsylvania, and Harvard Business School,
Massachusetts
1987 Economics and Business Administration, University of Applied
Sciences, Zurich
Swiss Finance Institute, foundation board member
Zurich Chamber of Commerce, board member and board committee member
International Center for Monetary and Banking Studies (ICMB),
foundation board member
Ulrico Hoepli Foundation, foundation board member
Stiftung Zurich Zoo, foundation board member

192
Joachim Oechslin
Born 1970
Swiss Citizen
Member since 2014
Chief Risk Officer
Chief Risk Officer (2014–present)
2007–2013 Munich Re Group, Chief Risk Officer
2007 AXA Group, deputy Chief Risk Officer
2001–2006 Winterthur Swiss Insurance Company
Member of the executive board (2006)
Chief Risk Officer (2003–2006)
Head of risk management (2001–2003)
1998–2001 McKinsey Company, consultant
Education
1998 Licentiate/Master of Science in Mathematics,
Swiss Federal Institute of Technology (ETH), Zurich
1994 Engineering degree, Higher Technical Institute (HTL),
Winterthur
Member of the International Financial Risk Institute
Timothy P. O’Hara
Born 1964
US Citizen
Member since 2014
Joint Head of Investment Banking, responsible for the
Equities business (2014–present)
President and CEO of Credit Suisse Securities (USA) LLC
(2012–present)
Global Head of Equities (2012–2014)
Co-Head of Global Securities (2011–2012)
Head of Fixed Income, North America (2009–2011)
Head of Global Credit Products (2008–2011)
Global Head of Leveraged Finance (2005–2008)
Global Head of High Yield Capital Markets and Head of US
High Yield Capital Markets (2000–2005)
Head of Origination/Banking, High Yield (1998–2000)
Various senior management and other positions in
Investment Banking (1986–1998)
Education
1990 MBA in Finance, Wharton School, University of Pennsylvania
1986 BA in Economics, University of Virginia
Securities Industry and Financial Markets Association, board member
(Credit Suisse representative) and executive committee member
University of Virginia College Foundation, board of trustees member
Project Morry, board member

Robert S. Shafir
Born 1958
US Citizen
Member since 2007
Joint Head of Private Banking
Wealth Management
Regional CEO Americas
Joint Head of Private Banking Wealth Management
(2012–present)
Regional CEO Americas (2012–present)
CEO of Asset Management (2008–2012)
CEO of the Americas region (2007–2010)
1990–2006 Lehman Brothers
Senior Relationship Manager (2005-2006)
Head of global equity division (2000–2005)
Head of global equity trading (1998–2000)
Head of European equity (1996–1998)
COO European equity (1995–1996)
Head of Lehman Commercial Paper (1994–1995)
Senior positions in Preferred Stock Sales (1990–1994)
1984–1990 Morgan Stanley, vice president, preferred stock business within
the fixed income division
Education
1984 MBA, Columbia University, Graduate School of Business,
New York
1980 BA in Economics, Lafayette College, Pennsylvania
Cystic Fibrosis Foundation, board member
Pamela A. Thomas-Graham
Born 1963
US Citizen
Member since 2010
Chief Marketing and Talent Officer and
Head of Private Banking
Wealth Management New Markets
Chief Marketing and Talent Officer and Head of Private
Banking Wealth Management New Markets (2013–present)
Chief Talent, Branding and Communications Officer
(2010–2013)
2008–2010 Angelo, Gordon Co., managing director in the private
equity group
2005–2008 Liz Claiborne Inc., several senior management positions,
including senior vice president of Global Brand Development
1999–2005 NBC
NBC Universal/CNBC, president, CEO and chair
(2001–2005)
NBC Universal/CNBC, president and COO (2001)
CNBC.com, president and CEO (1999–2001)
1989–1999 McKinsey Company
Partner (1995–1999)
Associate (1989–1995)
Education
1989 JD, Harvard Law School, Massachusetts
1989 MBA, Harvard Business School, Massachusetts
1985 BA in Economics, Harvard University, Massachusetts
The Clorox Company, board member
Parsons School of Design, board of governors member
Museum of Modern Art, Trustee Education Committee, member
Council on Foreign Relations, member
Economic Club of New York, member
Eaglebrook School, board member
Metropolitan Museum of Art, member of the Business Committee
New York Philharmonic, board member

194
Additional information
Changes in control and defense measures
Duty to make an offer
Swiss law provides that anyone who, directly or indirectly or acting
in concert with third parties, acquires 331
⁄3% or more of the vot-
ing rights of a listed Swiss company, whether or not such rights
are exercisable, must make an offer to acquire all of the listed
equity securities of such company, unless the AoA of the company
provides otherwise. Our AoA does not include a contrary provi-
sion. This mandatory offer obligation may be waived under certain
circumstances by the Swiss Takeover Board or q FINMA. If no
waiver is granted, the mandatory offer must be made pursuant
to procedural rules set forth in the SESTA and the implementing
ordinances.
Clauses on changes in control
Subject to certain provisions in the Group’s employee compensa-
tion plans, which allow for the Compensation Committee or Board
to determine the treatment of outstanding awards for all employ-
ees in the case of a change in control, there are no provisions
that require the payment of extraordinary benefits in the case of
a change in control in the agreements and plans benefiting mem-
bers of the Board and the Executive Board or any other mem-
bers of senior management. Specifically, there are no contractually
agreed severance payments in the case of a change in control of
the Group.
In the case of a change in control, the treatment of outstand-
ing awards for all employees, including Executive Board members,
will be determined by the Compensation Committee or the Board.
In the case of a change in control, there are no provisions in the
employment contracts of Executive Board members that require
the payment of any type of extraordinary benefits, including special
severance awards.
Internal and external auditors
Auditing forms an integral part of corporate governance at the
Group. Both internal and external auditors have a key role to play
by providing an independent assessment of our operations and
internal controls.
Internal Audit
Our Internal Audit function comprises a team of around 250 pro-
fessionals, substantially all of whom are directly involved in auditing
activities. The Head of Internal Audit, Martyn Scrivens, reports
directly to the Audit Committee chairman.
Internal Audit performs an independent and objective assur-
ance function that is designed to add value to our operations.
Using a systematic and disciplined approach, the Internal Audit
team evaluates and enhances the effectiveness of our risk man-
agement, control and governance processes.
Internal Audit is responsible for carrying out periodic audits in
line with the Regulations of Internal Audit approved by the Audit
Committee. It regularly and independently assesses the risk expo-
sure of our various business activities, taking into account industry
trends, strategic and organizational decisions, best practice and
regulatory matters. Based on the results of its assessment, Inter-
nal Audit develops detailed annual audit objectives, defining areas
of audit concentration and specifying resource requirements for
approval by the Audit Committee.
As part of its efforts to achieve best practice, Internal Audit
regularly benchmarks its methods and tools against those of its
peers. In addition, it submits periodic internal reports and sum-
maries thereof to the management teams as well as the Chairman
and the Audit Committee chairman. The Head of Internal Audit
reports to the Audit Committee at least quarterly and more fre-
quently as appropriate. Internal Audit coordinates its operations
with the activities of the external auditor for maximum effect.
External auditors
Our statutory auditor is KPMG AG (KPMG), Badenerstrasse 172,
8004 Zurich, Switzerland. The mandate was first given to KPMG
for the business year 1989/1990. The lead Group engagement
partners are Anthony Anzevino, Global Lead Partner (since 2012)
and Simon Ryder, Group Engagement Partner (since 2010).
In addition, we have mandated BDO AG, Fabrikstrasse 50,
8031 Zurich, Switzerland, as special auditor for the purposes of
issuing the legally required report for capital increases in accor-
dance with Article 652f of the Swiss Code of Obligations, mainly
relating to the valuation of companies in consideration of the quali-
fied capital increases involving contributions in kind.
The Audit Committee monitors and pre-approves the fees to
be paid to KPMG for its services.
Fees paid to external auditors

2014
2013
% change
Fees paid to external auditors (CHF million)

Audit services 1
39.8
36.7
8
Audit-related services 2
6.7
6.4
5
Tax services 3
2.4
4.9
(51)
1
Audit fees include the integrated audit of the Group’s consolidated and statutory financial
statements, interim reviews and comfort and consent letters. Additionally they include all
assurance and attestation services related to the regulatory filings of the Group and its
subsidiaries.
2
Audit-related services are primarily in respect of: (i) reports related to the Group’s compli-
ance with provisions of agreements or calculations required by agreements; (ii) accounting
advice; (iii) audits of private equity funds and employee benefit plans; and (iv) regulatory
advisory services.
3
Tax services are in respect of tax compliance and consultation services, includ-
ing: (i) preparation and/or review of tax returns of the Group and its subsidiaries;
(ii) assistance with tax audits and appeals; and (iii) confirmations relating to the Qualified
Intermediary status of Group entities.
KPMG attends all meetings of the Audit Committee and reports
on the findings of its audit and/or interim review work. The Audit
Committee reviews on an annual basis KPMG’s audit plan and
evaluates the performance of KPMG and its senior representa-
tives in fulfilling its responsibilities. Moreover, the Audit Committee
recommends to the Board the appointment or replacement of the
external auditor, subject to shareholder approval as required by
Swiss law.

KPMG provides a report as to its independence to the Audit
Committee at least once a year. In addition, our policy on the
engagement of public accounting firms, which has been approved
by the Audit Committee, strives to further ensure an appropriate
degree of independence of our external auditor. The policy limits
the scope of services that the external auditor may provide to us or
any of our subsidiaries in connection with its audit and stipulates
certain permissible types of non-audit services, including audit-
related services, tax services and other services that have been
pre-approved by the Audit Committee. The Audit Committee pre-
approves all other services on a case-by-case basis. In accor-
dance with this policy and as in prior years, all KPMG non-audit
services provided in 2014 were pre-approved. KPMG is required
to report to the Audit Committee periodically regarding the extent
of services provided by KPMG and the fees for the services per-
formed to date.
American Depositary Share fees
Fees and charges for holders of ADS
In accordance with the terms of the Deposit Agreement, Deutsche
Bank Trust Company Americas, as depositary for the q ADS
(Depositary), may charge holders of our ADS, either directly or
indirectly, fees or charges up to the amounts described below.
Fees and charges for holders of ADS
Fees

USD 5 (or less) per 100 ADS
For the issuance of ADS, including issuances resulting from a distribution of shares, share dividends, share splits
(or portion thereof)
and other property; for ADS issued upon the exercise of rights; and for the surrender of ADS for cancellation

and withdrawal of shares.
USD 2 per 100 ADS
For any distribution of cash to ADS registered holders, including upon the sale of rights or other entitlements.
Registration or transfer fees
For the transfer and registration of shares on our share register to or from the name of the Depositary or its agent

when the holder deposits or withdraws shares.
Charges

Expenses of the Depositary
For cable, telex and facsimile transmissions (when expressly provided in the deposit agreement); and for converting

foreign currency to US dollars.
Taxes and other governmental
Paid, as necessary, to the Depositary or the custodian who pays certain charges on any ADS or share underlying
charges
an ADS, for example, stock transfer taxes, stamp duty or applicable interest or penalty thereon.
Other charges
Paid, as necessary, to the Depositary or its agents for servicing the deposited shares.
The Depositary collects its fees for the delivery and surrender
of ADS directly from investors depositing shares or surrendering
ADS for the purpose of withdrawal or from intermediaries acting
for them. The Depositary collects fees for making distributions to
holders by deducting those fees from the amounts distributed or
by selling a portion of distributable property to pay the fees. The
Depositary may generally refuse to provide fee services until its
fees for those services are paid.
Amounts paid by the Depositary to the Group
In accordance with the Group’s engagement letter, in 2014 the
Depositary made payments to the Group of USD 1.2 million,
including for the reimbursement of expenses relating to its Ameri-
can Depositary Receipt (ADR) program. The Depositary has also
contractually agreed to provide certain ADR program-related ser-
vices free of charge.
Under certain circumstances, including removal of the Deposi-
tary or termination of the ADR program by the Group, the Group is
required to repay certain amounts paid to the Group and to com-
pensate the Depositary for payments made or services provided
on behalf of the Group.
Liquidation
Under Swiss law and our AoA, we may be dissolved at any time by
a shareholders’ resolution which must be passed by:
p a supermajority of at least three-quarters of the votes cast at
the meeting in the event we are to be dissolved by way of liqui-
dation; and
p a supermajority of at least two-thirds of the votes represented
and an absolute majority of the par value of the shares repre-
sented at the meeting in other events.
Dissolution by court order is possible if we become bankrupt.
Under Swiss law, any surplus arising out of liquidation (after the
settlement of all claims of all creditors) is distributed to sharehold-
ers in proportion to the paid-up par value of shares held.

196
Compensation
Dear shareholders
In 2014, the environment for compensation regulation and prac-
tices was characterized by continued regional fragmentation in
compensation related regulatory developments and significant
divergence in compensation levels for comparable financial ser-
vices functions between the US and Europe. In addition, unusual
market conditions as reflected in unprecedented low interest
rates and volatility, as well as further evolution in the capital rules,
caused banking sector participants to reexamine their strategies.
Against this backdrop, the Compensation Committee of the Board
(Compensation Committee) and senior management continued to
review and refine our compensation practices in pursuit of the right
balance between meeting shareholders’ expectations in terms of
performance-based compensation, paying our employees com-
petitively in line with the market, and responding appropriately to
the regulatory environment.
Key developments in 2014
The Group strives for competitiveness by paying market-informed,
competitive compensation levels for comparable roles and experi-
ence. The Compensation Committee uses the services of exter-
nal compensation consultants to benchmark compensation levels
against relevant peers. Taking into account geographical varia-
tions of pay levels for similar roles and responsibilities has become
increasingly important in the last few years. More pronounced reg-
ulatory interventions within the EU have resulted in significant dif-
ferences between Europe and the US, both in terms of structure
(fixed versus variable pay) and absolute levels of compensation.
Following a review of leading providers with particular emphasis on
the ability to provide comprehensive access to performance and
reward data within the financial services industry, the Compensa-
tion Committee appointed McLagan as new independent compen-
sation adviser effective May 2014.
The Compensation Committee assessed the compensation-
related implications of the Capital Requirements Directive IV (CRD
IV) for our employees in EU locations. After obtaining the required
approvals, the Compensation Committee supported a cap on vari-
able compensation of two times fixed compensation for affected
employees. In line with market practice, it also approved the intro-
duction of fixed allowances based on the role and organizational
responsibility of the employees, which are treated as fixed com-
pensation for the purpose of calculating the referenced cap.
As indicated in last year’s Compensation Report, there is
emerging regulatory demand to extend the period of time during
which variable compensation awards may be recovered beyond
the respective dates of vesting and distribution to the employee. In
line with this, the Prudential Regulation Authority (PRA) in the UK
mandated in 2014 that all variable compensation awards granted
to employees defined as “PRA Code Staff” after January 1, 2015,
contain provisions enabling the Group to “claw back” compensation
for seven years from the grant date. 2014 variable compensation
granted to “PRA Code Staff” includes terms to comply with these
extended clawback provisions.
In addition to these mandatory changes, the compensation
structure for the Board of Directors (Board) was reviewed and
modified. In the interest of transparency a more granular fee struc-
ture was introduced reflecting the respective roles and responsi-
bilities of the Board members. Moreover, 2014 variable compen-
sation for the Executive Board is based on the revised structure
as outlined in the 2013 Compensation Report. Apart from this,
the Compensation Committee decided to leave the compensation
structure and applicable deferred compensation instruments for
the broader employee population largely unchanged from 2013.
Compensation decisions in 2014
In 2014, the Group’s revenues were in line with prior periods
despite the challenging market conditions. Private Banking
Wealth Management achieved net new assets growth in line with
our expectations and improved strategic results in terms of pre-
tax income and cost/income ratio. Improved Investment Banking
results for 2014 reflect the strength of our diversified franchise
with stable revenues and increased capital efficiency. Invest-
ment Banking continued to make progress reducing risk-weighted
assets and Swiss leverage exposure when denominated in US dol-
lars, in the strategic and non-strategic units. Shared services func-
tions provided a robust control environment, while supporting the
business in the transition to new regulatory requirements, making
significant progress on a number of major infrastructure projects.
Despite these notable achievements, the economic value of
variable incentive compensation awarded for 2014 for the Group
was 9% lower than in 2013, reflecting continued compensation
discipline and stable reported pre-tax income, including the impact
of the final settlement regarding all outstanding US cross-border
matters.
Due to the substantial impact of the US cross-border settle-
ment – the most significant and longstanding regulatory and litiga-
tion issue for Credit Suisse – both the Board and Executive Board
agreed to a voluntary reduction to their compensation that would
otherwise have been awarded to them for 2014. The total com-
pensation for the Board was reduced by approximately 25% and
the variable compensation for the Executive Board was reduced
by the equivalent of 20% of the amount that would have otherwise
been granted. This agreement reflected the view that the event
should have consequences for the compensation of the Group’s
top supervisory and management bodies, in order to accept the
collective responsibility these bodies bear in safeguarding the
long-term reputation and professional integrity of the Group’s busi-
nesses globally, regardless of which individuals serve as directors
or officers within these bodies at any given time.

Compensation
Consequently, the Board approved a 50% reduction in their
share-based compensation for 2014, which is approximately 25%
of their total compensation. For those members who were part
of the Executive Board at the time of the settlement, a down-
ward adjustment was applied equivalent to 20% of the amount
that would have otherwise been granted as variable compensation
for 2014. Of this amount, half was deducted from the amount that
would have been awarded as long-term incentive (LTI) awards for
2014 and half was deducted from existing unvested LTI incen-
tive awards granted for 2013. Including the voluntary adjustment,
which was applied to LTI awards granted for 2014, the proposed
Executive Board variable compensation for 2014 is 17% lower
than the amount awarded for 2013.
Annual General Meeting of Shareholders 2015
In line with the Swiss Ordinance Against Excessive Compensation
with respect to Listed Stock Corporations (Compensation Ordi-
nance) and the Group’s Articles of Association (AoA), compensa-
tion of the Board and the Executive Board will be subject to bind-
ing shareholder votes for the first time at the 2015 Annual General
Meeting of Shareholders (AGM). Accordingly, shareholders will be
asked to approve:
p Executive Board aggregate variable compensation for the
2014 financial year (retrospective vote)
p Maximum aggregate fixed compensation for the Executive
Board for the period 2015 AGM to 2016 AGM (prospective
vote)
p Maximum aggregate compensation for the Board for the
period 2015 AGM to 2016 AGM (prospective vote)
In reviewing various options to obtain shareholder approval, we
concluded that a prospective vote is warranted for the compen-
sation of the Board and all fixed compensation elements of the
Executive Board. However, in the interest of “pay for performance”
alignment, we decided to propose a retrospective vote on variable
compensation for the Executive Board in the context of actual
performance figures for the preceding financial years. Irrespec-
tive of these binding votes, we will continue to submit the entire
Compensation Report for a consultative vote as was our practice
in the past.
Focus areas in 2015
The Group is committed to responsible compensation practices
with particular emphasis on ethics, risk, control and compliance as
a basis for disciplined execution and the discouragement of exces-
sive risk taking. In this context, the Compensation Committee will
continue to closely monitor how risk and internal control consider-
ations are captured in performance reviews and how the respec-
tive assessments affect compensation recommendations.
Furthermore, the effectiveness of malus and clawback provi-
sions in our compensation plans will remain in the focus of the
Compensation Committee in 2015. The recovery of compensation
awards after vesting and distribution to the employee is unchar-
tered territory in some jurisdictions. However, whenever necessary
we will pursue the application of clawback to the full extent permit-
ted under applicable law.
For 2015, the performance evaluation and the structure of
Executive Board compensation will remain essentially similar to the
approach for 2014.
The Compensation Committee will ensure full compliance with
regulatory developments and will closely monitor market trends to
maintain our competitive compensation structure in line with best
practice.
Finally, the Compensation Committee is satisfied that this
Compensation Report reflects the review process and determina-
tion of compensation for 2014. This Compensation Report is in line
with the specific remuneration disclosure requirements issued by
the Swiss Financial Market Supervisory Authority FINMA (FINMA).
In the context of compensation for the Board and the Executive
Board, the Compensation Report is in compliance with the respec-
tive provisions of the Compensation Ordinance. The activities of
the Compensation Committee were executed in accordance with
its mandate under the Credit Suisse Organizational Guidelines and
Regulations and the Compensation Committee charter.
Jean Lanier
Chairman of the Compensation Committee
Member of the Board of Directors
March 2015

Compensation
Group compensation
Compensation policy and objectives
The objectives of the Group’s compensation policy include attract-
ing and retaining employees, and motivating employees to achieve
results with integrity and fairness. The compensation policy is
designed to support a performance culture which fosters teamwork
and collaboration. Furthermore, it aims to promote effective risk
management practices consistent with the Group’s compliance and
control framework. The compensation policy takes into account the
capital position and long-term performance of the Group and bal-
ances the fixed and variable compensation components to reflect
the value and responsibility of the roles that employees perform.
The objectives of the compensation policy are framed to achieve an
appropriate balance between the interests of employees and share-
holders in order to create sustainable value for the Group.
The compensation policy applies to all employees and com-
pensation plans of the Group. It contains a detailed description
of the Group’s compensation principles and objectives as well as
the compensation programs. It also sets out the standards and
processes relating to the development, management, implementa-
tion and governance of compensation. The compensation policy
adheres to the compensation principles set out by the Group’s
regulator in Switzerland, the qFINMA, and the Group’s other main
regulators.
The compensation policy is reviewed regularly and endorsed
by the independent Compensation Committee. The compensation
policy, as well as periodic updates and revisions, is approved by the
Board. The compensation policy is accessible to all employees and
is published at www.credit-suisse.com/compensation.
The Compensation Committee is the supervisory and governing
body for compensation policy, practices and plans. It is respon-
sible for determining, reviewing and proposing compensation for
the Group and Executive Board for approval by the Board. In
November 2013, the Swiss Federal Council approved the Com-
pensation Ordinance, which came into effect on January 1, 2014.
In accordance with the Compensation Ordinance and the modified
AoA, beginning with the 2015 AGM, the shareholders will vote to
approve the compensation of the Board and the Executive Board
based on the proposals set forth by the Board. The Compensation
Committee consists of at least three members of the Board, all
of whom must be independent. The current members are Jean
Lanier (chairman), Iris Bohnet, Andreas N. Koopmann and Kai
S. Nargolwala. The Board has applied the independence criteria
of the Swiss Code of Best Practice for Corporate Governance
and the FINMA, and the rules of the New York Stock Exchange
(NYSE) and the Nasdaq Stock Market (Nasdaq) in determining
that all of these individuals are independent.
u Refer to “Independence” in Corporate Governance – Board of Directors for
more information on how the Group determines the independence of its Board
members.
Advisers to the Compensation Committee
The Compensation Committee is authorized to retain outside
advisers, at the Group’s expense, for the purposes of providing
guidance to the Compensation Committee as it carries out its
responsibilities. Effective as of May 2014, McLagan, a manage-
ment consulting firm specializing in the benchmarking of perfor-
mance and reward data for the financial services industry, assists
the Compensation Committee in ensuring that the Group’s com-
pensation program remains competitive, responsive to regulatory
developments and in line with the compensation policy. Johnson
Associates provided these advisory services until May 2014. McL-
agan has appointed a senior consultant to advise the Compensa-
tion Committee. This individual does not provide other services to
the Group other than assisting the Compensation Committee. The
law firm Nobel Hug acts as external legal counsel to the Com-
pensation Committee. Prior to their appointment, the Compensa-
tion Committee conducted an independence assessment of these
advisers pursuant to the rules of the US Securities and Exchange
Commission (SEC) and the listing standards of the NYSE and the
Nasdaq.
Compensation Committee meetings and annual
performance review
The Chairman of the Board (Chairman) and the Chief Executive
Officer (CEO) may attend the Compensation Committee meetings,
and the Compensation Committee chairman determines the atten-
dance of other Board members, Executive Board members, senior
management, compensation advisers and external legal counsel,
as appropriate.
In January of each year, the Compensation Committee meets,
with the Chairman and the CEO present, for the primary purpose
of reviewing the performance of the Group, businesses and the
respective management teams for the previous year. This pro-
vides the basis for a recommendation of the overall compensation
pools for the business divisions and Shared Services functions for
approval by the Board. During its annual performance review, the
Compensation Committee considers input from the chairmen of
the Risk and Audit Committees, who may also attend the Com-
pensation Committee meeting in January. The Risk Committee
provides input to the Compensation Committee with respect to
risk considerations and the Audit Committee provides input with
respect to internal control considerations. The Compensation
Committee approves the compensation for the Head of Internal
Audit after consulting with the Audit Committee chairman.
The Compensation Committee also considers input from the
Group’s internal control functions. Specifically this includes con-
tributions from Risk Management, Legal and Compliance and
Internal Audit, regarding control and compliance issues and any
breaches of relevant rules and regulations or the Group’s Code of
Conduct. The Compensation Committee reviews the impact on the
recommended amount of variable compensation of individuals who
have been subject to the Group’s disciplinary processes.

200
To meet regulatory guidelines regarding employees engaged
in risk-taking activities, the Compensation Committee reviews and
approves the compensation for employees identified as qMaterial
Risk Takers and Controllers (MRTC). The Risk Committee is
involved in the review process for MRTC.
u Refer to “Material Risk Takers and Controllers” for further information.
During 2014, the Compensation Committee held 10 meetings,
with the following focus areas:
p assessing the performance of the Group and determining the
divisional compensation pools for recommendation to the Board;
p reviewing the level and composition of compensation for Exec-
utive Board members and members of the Board, taking into
account the key issues raised by shareholders, the impact of
the US cross-border settlement in May 2014 and emerging
best practice among peer companies;
p monitoring global regulatory and market trends with respect to
compensation at financial institutions and assessing the obliga-
tions imposed by the Compensation Ordinance;
p reviewing the approach for compensating employees subject to
the CRD IV regulations;
p further enhancing the compensation process for Covered
Employees (which include MRTC as well as certain other
employees, as defined below) in line with regulatory guidance;
and
p monitoring the link between employee behavior and compen-
sation levels, including any impact of employee misconduct on
compensation.
The Compensation Committee chairman maintains an active dia-
logue with the Group’s principal regulators about compensation gov-
ernance and plans. In addition, he engages with shareholders and
their representatives regarding the compensation policy and plans.
Approval authority
The approval authorities for setting compensation policy and com-
pensation for different groups of employees are defined in the
Group’s Organizational Guidelines and Regulations (OGR) and the
Compensation Committee charter (available at www.credit-suisse.
com/governance).
Board approval, based on the recommendation of the Com-
pensation Committee, is required to:
p establish or amend the Group’s compensation policy;
p establish or amend the compensation plans;
p determine the variable compensation pools for the Group and
divisions;
p determine compensation for the Executive Board members,
including the CEO, subject to the shareholder approval require-
ment pursuant to the Compensation Ordinance; and
p determine compensation of the Board, including the Chairman,
subject to the shareholder approval requirement pursuant to
the Compensation Ordinance.
Compensation Committee approval is required for compensation
decisions with respect to:
p the Head of Internal Audit (in consultation with the Audit Com-
mittee chairman);
p MRTC; and
p other selected members of management.
Impact of regulation on compensation
Many of the Group’s regulators, including FINMA, focus on com-
pensation. The requirements of FINMA are set out in FINMA’s
Circular on Remuneration Schemes (Circular). Additionally, several
regulators, including those in the US, the EU and the UK, impose
requirements that differ from, or supplement, the FINMA require-
ments. Therefore, the Group’s plans comply globally with the Circu-
lar and, to the extent local requirements differ from or supplement
those standards, plans are adapted locally in the relevant jurisdiction.
This generally results in additional terms, conditions and processes
being implemented in the relevant locations. The Group continu-
ously monitors regulatory and legislative developments in all appli-
cable jurisdictions, as well as industry best practices in compensa-
tion and guidance issued by various regulatory bodies.
Pursuant to the Compensation Ordinance, compensation of
the Board and the Executive Board is approved annually by the
AGM either as a maximum aggregate amount or as maximum par-
tial amounts for the respective compensation components.
The Compensation Committee assessed the implications of the
CRD IV regulations. In accordance with these regulations, a cap
on variable compensation of two times fixed compensation was
implemented for applicable employees after obtaining the required
approvals. We also introduced fixed allowances as a compensa-
tion component for applicable employees subject to the CRD IV
regulations, in line with market practice. These fixed allowances
are determined based on the role and organizational responsibility
of the employees.
In July 2014, the PRA in the UK mandated that all variable
compensation awards granted to employees that meet the defini-
tion of “PRA Code Staff” on or after January 1, 2015 contain pro-
visions enabling the Group to clawback variable compensation for
seven years from the grant date. These provisions were included in
awards granted to “PRA Code Staff” in January 2015.

Compensation
Determination of variable compensation pools
In determining the variable compensation pools (pools), the Com-
pensation Committee aims to balance the distribution of the
Group’s profits between shareholders and employees. The primary
measure of performance for determining the pools of the Group
and business divisions is economic contribution. The methodology
to determine the Group and divisional pools also takes into account
key performance indicators (KPIs) and certain non-financial criteria,
including risk and control, compliance and ethical considerations
and relative performance compared to peers, as well as the market
and regulatory environment.
Economic contribution is measured at both the Group and divi-
sional levels as income before taxes and variable compensation
expense, after deducting a capital usage charge that is calculated
based on regulatory capital. Such regulatory capital is defined
for the Investment Banking and Private Banking Wealth Man-
agement divisions as the average of 10% of average divisional
qBasel III qrisk-weighted assets and 2.4% of average divisional
leverage exposure, and regulatory capital is defined for the Group
as the sum of both divisions. For this measure, the Group and divi-
sional results exclude the funding valuation adjustments (FVA), sig-
nificant litigation provisions and settlements as approved by the
Compensation Committee, and the Group results also exclude fair
value gains and losses from movements in own credit spreads. This
measure of economic contribution considers the profitability of the
divisions and the Group and the capital utilized to achieve this prof-
itability. The Compensation Committee intends to achieve a more
balanced distribution of economic contribution between employees
and shareholders over the longer-term, subject to Group perfor-
mance and market conditions.
The performance-based pools are determined on an annual
basis, and accruals for the divisional and Group-wide pools are
made throughout the year. The Compensation Committee regularly
reviews the accruals and related financial information and applies
adjustments in exceptional circumstances to ensure that the over-
all size of the pools is consistent with the Group’s compensation
objectives.
The total amount of the Shared Services pool is determined
based on Group-wide financial performance, measured in the form
of Group economic contribution and qualitative measures and is not
linked to the performance of the particular divisions that the Shared
Services employees support. Therefore, Shared Services employ-
ees, including those performing control functions, are remuner-
ated independently from the performance of the businesses they
oversee and support. As with the business divisions, risk, control,
compliance and ethical considerations and relative performance
compared to peers, as well as the market and regulatory environ-
ment, are taken into account. After the pool has been determined
for the Shared Services functions, a deduction is applied to the
pool of each business division, following a consistent allocation
approach, to fund the pool for the employees of the Shared Ser-
vices functions.
Once the pools have been set at the Group and divisional levels,
each business division allocates its pool to its business areas, based
on the same or similar factors as used to determine the divisional
pool. Capital usage and risk are factored into the pools as they are
allocated within business areas. Through this process, business area
managers recognize that capital usage is a significant factor in deter-
mining the pool for the business area under their responsibility. The
pools are allocated to line managers who award variable compensa-
tion to employees based on individual and business area performance,
subject to the constraints of the pool size. The Shared Services pool
is allocated to the various functions within Shared Services based on
factors such as the achievement of performance objectives, compli-
ance with policies and regulations, and market conditions.
Competitive benchmarking
The assessment of the economic and competitive environment is
another important element of the compensation process as the
Group strives for market-informed, competitive compensation lev-
els. Internal expertise and the services of compensation consult-
ing firms are used to benchmark compensation levels against rel-
evant peers, taking into account geographical variations. The peer
groups and relevant metrics used are reviewed annually by the
Compensation Committee and tracked throughout the year.
The peer groups used in 2014 for the Group and the divisions
are shown in the following table, along with the specific perfor-
mance criteria used for assessing relative performance. Most of
these peer companies mention Credit Suisse as one of their peers
for the purposes of compensation benchmarking.

202
2014 peer groups and performance criteria1
Credit Suisse Group

Peer group
Bank of America, Barclays, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, HSBC,

JPMorgan Chase, Morgan Stanley, Nomura, Société Générale and UBS
Performance criteria

Profitability and efficiency
Return on equity, pre-tax income margin and compensation/revenue ratio
Growth
Earnings per share growth, net revenue growth, net new assets growth

and total assets under management growth
Capital and risk
Tier 1 ratio, look-through CET1 ratio, leverage ratio, Value-at-Risk and risk-weighted assets development
Shareholder satisfaction
Total shareholder return over one year, total shareholder return over two years and book value per share growth

Peer group
Allianz, BlackRock, Deutsche Bank, Goldman Sachs, HSBC, Julius Bär Group,

JPMorgan Chase, Morgan Stanley and UBS

Pre-tax income margin, pre-tax income on assets under management and gross margin
Growth
Net revenue growth, pre-tax income growth and net new assets growth
Investment Banking

Peer group
Bank of America, Barclays, Citigroup, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley and UBS

Pre-tax return on economic risk capital, pre-tax income margin and compensation/revenue ratio
Growth
Net revenue growth and pre-tax income growth
Capital and risk
Net revenue/Value-at-Risk
1
The Credit Suisse Group and Investment Banking peer groups for 2014 remain unchanged compared to the peer groups used in the Annual Report 2013. Barclays was removed from the
Private Banking Wealth Management peer group for 2014 due to insufficient disclosure.
Focus on risk and control
Risk and control considerations are an integral part of the perfor-
mance assessment and compensation processes. This ensures
that the Group’s approach to compensation includes a focus on risk
and internal control matters and discourages excessive risk taking.
Role of control functions
In addition to the annual performance assessment conducted by
their line managers, employees who have breached Group poli-
cies or procedures are subject to a review process by the Group’s
control functions, which impacts decisions about individual variable
compensation awards. The control functions are independent from
the businesses and include Legal and Compliance, Risk Manage-
ment, Finance, Human Resources and Internal Audit. Regional
disciplinary review committees include the input of the Group’s
control functions and make recommendations on disciplinary mea-
sures, as necessary. Such measures can include the reduction or
elimination of the employee’s variable compensation award for the
current year and deferred compensation awards from prior years,
in line with the applicable malus provisions. The Board’s Audit
and Risk Committees are periodically provided with information
on the disciplinary cases and may give directional input regarding
the appropriateness of disciplinary outcomes. The results of the
disciplinary review committees’ assessment and any disciplinary
measures are communicated to the Compensation Committee,
together with details of any impact on variable compensation.
Material Risk Takers and Controllers
MRTC include employees who, either individually or as a part of a
group, are considered to have a potentially material impact on the
Group’s risk profile. The criteria for classifying individuals as MRTC
for the Group are approved by the Board upon recommendation by
the Compensation and Risk Committees.

Compensation
Employees meeting one or more of the following criteria are
identified as MRTC:
p members of the Executive Board;
p employees who report directly to a member of the Executive
Board: i) in the business divisions, these include employees
responsible for managing significant lines of business of the
Group and members of divisional management committees;
and ii) in the Shared Services functions of Internal Audit,
Finance, Risk Management, Legal and Compliance and Talent,
Branding and Centers of Excellence, these include senior con-
trol personnel who are responsible for monitoring individuals or
groups of individuals who manage material amounts of risk for
the Group;
p employees, either individually or as part of a group, with the
ability to put material amounts of the Group’s capital at risk
(these include traders, and others who are authorized to man-
age, supervise or approve risk exposure that could have a
material or significant effect on the Group’s financial results);
p the top 150 paid employees across the Group (based on total
compensation), regardless of seniority or function;
p all UK managing directors and other employees, who based on
the significance of their functions in the UK and the potential
impact of their risk-taking activities on the UK entities meet the
“PRA Code Staff” definition of the Group’s UK regulator, the
PRA; and
p other individuals, whose roles, individually or as part of a group,
have been identified as having a potential impact on the mar-
ket, reputational or operational risk of the Group.
Compensation process for MRTC
MRTC are subject to heightened levels of scrutiny over the align-
ment of their performance and compensation. MRTC and their
managers are required to incorporate risk considerations in their
performance evaluations. This includes specifying the types of risk
applicable to the individual employee when reviewing performance
and subsequently setting risk-adjusted variable compensation.
The types of risk considered vary by role and include reputational,
credit, market, operational, liquidity, and legal and compliance
risks. Risk is assessed in the context of both realized and potential
risk outcomes.
Covered Employees
In response to requirements of the US Federal Reserve, the Group
has identified two additional groups of US-based employees,
who are also subject to the compensation processes that apply
for MRTC. The broader group is collectively known as Covered
Employees, and is comprised of:
p MRTC;
p all US-based revenue producers in Investment Banking; and
p all branch managers of the US Wealth Management Clients busi-
ness within the Private Banking Wealth Management division.
Malus provisions
All deferred compensation awards contain provisions that enable
the Group to reduce or cancel the awards of employees whose
individual behavior has had a materially detrimental impact on the
Group.
Additional malus provisions apply that can be triggered in
cases where the behavior or performance of the individual causes,
or could cause:
p a material downturn in the financial performance or regulatory
capital base of the Group, or any of its divisions or regions;
p a material failure of risk management, reputational harm, or
other similar events; or
p a combination of the above, as determined by the Board at its
sole discretion.
Performance share awards contain further provisions that can
result in a downward adjustment or cancellation of the full bal-
ance of deferred awards, in the event of future negative business
performance.
u Refer to “Compensation design” for further information on deferred
compensation.
u Refer to “Performance share awards” for details of these awards and the per-
formance-based malus provisions and to the table “Potential downward adjust-
ments of performance share and STI awards” for specific downward adjustments
that may be applied.
Clawback provisions
While malus provisions referenced above only affect deferred
awards, recently enacted regulations require the introduction of
additional provisions enabling the Group, subject to conditions, to
claim back variable compensation even after vesting and distribu-
tion to the employee (clawback). The PRA in the UK was the first
regulator to mandate that variable compensation granted to “PRA
Code Staff” in 2015 is subject to clawback for seven years after
the grant date.
Compensation design
The Group’s total compensation approach comprises fixed and
variable compensation. Fixed compensation includes base salary,
which reflects seniority, experience, skills and market practice, and
fixed allowances for certain employees. Variable compensation is
awarded annually and is dependent on Group, divisional and indi-
vidual performance. The percentage mix between fixed and vari-
able compensation varies according to the employee’s seniority,
business and location.
Variable compensation for 2014 was awarded primarily in the
form of unrestricted cash, share-based awards and Contingent
Capital Awards (CCA). Share-based awards and CCA are deferred
variable compensation instruments that vest and settle in the
future as described further below.

204
1
Deferred compensation is applicable to employees with total compensation of CHF/USD 250,000 or higher.
Employee categories and components of total compensation for 2014
Total compensation
Fixed
compensation
Employee category
Managing directors and
directors who are MRTC
Other directors
Other MRTC
Other employees with total compensation
above CHF/USD 250,000
Employees with total compensation below
CHF/USD 250,000
Base
salary
Unrestricted
cash
Share
awards
28%
79%
50%
100%
Performance
share awards
50%
50%
Contingent
Capital Awards
22%
21%
Variable compensation
Deferred compensation1
Base salaries
All employees are paid a base salary. Salary levels are based on
the skills, qualifications and relevant experience of the individual,
the responsibilities required by the role and external market factors.
Fixed Allowances
Fixed allowances were introduced in 2014 as a new component of
compensation for “PRA Code Staff” and other employees identi-
fied as risk-takers under EU regulatory requirements. These fixed
allowances were determined based on the role and organizational
responsibility of the individuals. Subject to certain conditions, fixed
allowances are deemed to be fixed compensation for the purposes
of calculating the cap of variable compensation as required by the
CRD IV. For 2014, fixed allowances were comprised of a cash
component paid during 2014 and a share component subject to
vesting over a period of three years and on-going employment.
Variable compensation and deferral rates
For 2014, variable compensation was paid in unrestricted cash
unless the total compensation awarded to an employee for 2014
was greater than or equal to CHF 250,000 or the local currency
equivalent (or USD 250,000 for employees whose total compen-
sation is denominated in USD), in which case a portion was paid in
unrestricted cash and the balance was deferred, vesting at a later
date. The deferred portion was defined by a deferral table whereby
the portion of deferred compensation increased with higher lev-
els of total compensation. The deferred portion for 2014 ranged
from 17.5% to 90% of variable compensation, unchanged from
2013, and the amount of variable compensation paid as unre-
stricted cash for 2014 was capped at CHF 2 million or the local
currency equivalent (or USD 2 million for employees whose total
compensation is denominated in USD) per employee. For 2014,
41,809 employees received variable compensation, representing
91% of total employees, of which 801 were classified as MRTC.
u Refer to “Number of employees awarded variable and other compensation” for
Unrestricted cash
Generally, employees receive the cash portion of their variable
compensation as unrestricted cash at a regular payroll settlement
date close to the grant date.
Blocked share awards
To comply with CRD IV requirements, employees who hold key
roles in respect of certain Group subsidiaries in the EU receive
shares that are subject to transfer restrictions for 50% of the
amount that would have been paid to them as unrestricted cash.
These shares are vested at the time of grant but remain blocked,
that is, subject to transfer restrictions, for six months to three years
from the date of grant, depending on location.
Deferred variable compensation instruments
Share awards
Each share award entitles the holder of the award to receive one
Group share at the delivery date. Share awards are designed to
align the interests of employees and shareholders, as well as com-
ply with the expectations of regulators that a substantial portion of
variable compensation should be granted in this form.
Share awards vest over three years with one third of the award
vesting on each of the three anniversaries of the grant date (rat-
able vesting). The number of share awards granted was deter-
mined by dividing the value of the deferred component of the

Compensation
variable compensation to be granted as share awards by the appli-
cable share price of CHF 20.21, as approved by the Board of
Directors in January 2015. The final value of the share awards is
solely dependent on the share price at the time of delivery. Share
awards granted since January 1, 2014 do not include the right to
receive dividend equivalents during the vesting period. A total of
7,583 employees were granted share awards for 2014.
Performance share awards
Performance share awards are similar to share awards, except
that the full balance of outstanding performance share awards,
including those awarded in prior years, are subject to explicit per-
formance-based malus provisions. For employees in the business
divisions, the malus provision applies in the event of a divisional
loss or a negative strategic return on equity (ROE) of the Group,
whichever results in a larger adjustment. For employees in Shared
Services, the negative adjustment only applies in the event of a
negative strategic ROE of the Group, and is not linked to the per-
formance of the divisions. The basis for the ROE calculation may
vary from year to year, depending on the Compensation Commit-
tee’s determination for the year in which the performance shares
are granted. Performance share awards for 2013 were based on
underlying ROE, while performance share awards for 2014 were
based on strategic ROE, in line with the change in the Group’s
reporting structure.
u Refer to “Core results” in the II – Operating and financial review for a summary
of strategic results.
The amount of the potential negative adjustment for a loss at the
divisional level, which is applicable to all outstanding performance
share awards (including the short term incentive, STI) awards of
Executive Board members who lead business divisions), is shown
in the following table.
Potential downward adjustments of performance
share and STI awards
Downward adjustment if division incurs a loss
Division pre-tax loss
Adjustment on
(in CHF billion)
award balance (in %)
(1.00)
(15%)
(2.00)
(30%)
(3.00)
(45%)
(4.00)
(60%)
(5.00)
(75%)
(6.00)
(90%)
(6.67)
(100%)
As in the case of share awards, performance share awards granted
since January 1, 2014 do not include the right to receive dividend
equivalents during the vesting period. A total of 1,752 employ-
ees were granted performance share awards for 2014. Managing
directors and almost all employees classified as MRTC received at
least 50% of their deferred variable compensation in the form of
performance share awards.
Contingent Capital Awards (CCA)
CCA are a form of deferred award that have rights and risks similar
to those of certain contingent capital instruments issued by the
Group in the market, such as the high-trigger contingent capi-
tal instruments referred to as contingent convertible instruments.
CCA provide a conditional right to receive semi-annual cash pay-
ments of interest equivalents; for CCAs granted in January 2015
interest rate equivalents are paid until settlement at a rate of
4.85% per annum over the six-month Swiss franc qLondon Inter-
bank Offered Rate (LIBOR) for Swiss franc-denominated awards
or 5.75% per annum over the six-month US dollar LIBOR for US
dollar-denominated awards. This rate was set in line with mar-
ket conditions at the time of grant and with existing high-trigger
and low-trigger contingent capital instruments that the Group has
issued. CCA are not traded in the debt markets. Employees who
were awarded compensation in Swiss francs could elect to receive
CCA denominated in Swiss francs or US dollars, and all other
employees received CCA denominated in US dollars.
CCA are scheduled to vest on the third anniversary of the grant
date and will be expensed over three years from grant. However,
because CCA qualify as additional tier 1 capital of the Group,
the timing and form of distribution upon settlement is subject to
approval by FINMA. At settlement, employees will receive either
a contingent capital instrument or a cash payment based on the
qfair value of the CCA. The fair value will be determined by the
Group. In the case of a cash settlement, the CCA award currency
denomination will be converted into the local currency of each
respective employee.
CCA have loss-absorbing features such that prior to settlement,
the principal amount of the CCA would be written-down to zero and
canceled if any of the following trigger events were to occur:
p the Group’s reported common equity tier 1 (CET1) ratio falls
below 7%; or
p FINMA determines that cancellation of the CCA and other
similar contingent capital instruments is necessary, or that the
Group requires public sector capital support, in either case to
prevent it from becoming insolvent or otherwise failing.
These terms are similar to those of the outstanding tier 1 high-
trigger capital instruments that the Group has issued since 2011.
However, unlike the Group’s outstanding tier 1 high-trigger instru-
ments, the CCA would not convert into common equity, but would
be written down to zero upon a trigger event.
The Group intends in future years to continue to grant CCA as
one of its annual deferred variable compensation awards. CCA will
be utilized to align compensation with the maintenance of strong
capital ratios, provide additional tier 1 capital, and reduce dilution
to existing share capital that would otherwise be incurred with the
issuance of share-based deferred compensation awards.
The total CCA awarded had a fair value of CHF 360 million
and a total of 5,891 employees received CCA for 2014.

206
Other awards
The Group may employ other compensation plans or programs to
facilitate competitive hiring practices and to support the retention
of talent. These variations from the standard approach apply to a
small population of employees where specific circumstances jus-
tify special compensation arrangements. For 2014, this applied to
approximately 295 employees. These variations from the standard
approach must be approved by the Compensation Committee.
The Group also pays commissions to employees operating in
specific areas of the business, in line with market practice. These
commissions are calculated based on formulas, and are reviewed
regularly to ensure that they remain at competitive levels.
Limitations on share-based awards
The Group prohibits employees from entering into transactions to
hedge the value of outstanding share-based awards. Employee
pledging of unvested share-based awards is also prohibited,
except with the express approval of the Compensation Committee.
The Group applies minimum share ownership requirements, inclu-
sive of unvested awards, for members of the divisional and regional
management committees, as follows:
p Executives responsible for Private Banking Wealth Manage-
ment and Investment Banking: 50,000 shares; and
p Executives responsible for Shared Services functions: 20,000
shares.
u Refer to “Minimum share ownership requirements” in Executive Board Com-
pensation for further information on minimum share ownership requirements for
Executive Board members.
Total compensation awarded
The following table shows the value of total compensation awarded
to employees for 2014 and 2013.
For 2014
2013

Unrestricted
Deferred
Total
Unrestricted
Deferred
Total
Fixed compensation (CHF million)

Salaries
5,417
89
5,506
5,525
–
5,525
Social security
793
–
793
778
–
778
Other
657 1
–
657
800 1
–
800
Total fixed compensation
6,867
89
6,956
7,103
–
7,103
Variable incentive compensation (CHF million)

Unrestricted cash
1,653
–
1,653
1,570
–
1,570
Share awards
36
642
678
18
827
845
–
529
529
–
663
663
Contingent Capital Awards
–
360
360
–
391
391
Other cash awards
–
54
54
–
142
142
Total variable incentive compensation
1,689
1,585
3,274
1,588
2,023
3,611
Other variable compensation (CHF million)

Cash severance awards
176
–
176
150
–
150
Sign-on awards
13
58
71
18
62
80
Cash-based commissions
220
–
220
198
–
198
Total other variable compensation
409
58
467
366
62
428
Total compensation awarded (CHF million)

8,965
1,732
10,697
9,057
2,085
11,142
of which guaranteed bonuses 2
–
–
51
–
–
55
1
Includes pension and other post-retirement expense of CHF 361 million and CHF 490 million in 2014 and 2013, respectively.
2
Guaranteed bonuses may be awarded as variable incentive compensation or sign-on awards.
Total compensation awarded for 2014 was CHF 10.7 billion, down
4% compared to 2013, with reductions in fixed compensation and
share awards. Total variable incentive compensation awarded for
2014 was CHF 3.3 billion, down 9% compared to 2013. Of the
total variable incentive compensation awarded across the Group
for 2014, 48% was deferred and subject to certain conditions
including future service, performance, market and malus criteria.
Cash severance awards relating to terminations of employment
of CHF 189 million and CHF 263 million were paid in 2014 and
2013 to 1,552 and 2,189 employees, respectively. Sign-on awards
of CHF 13 million and CHF 18 million were paid to 102 and 83
employees in 2014 and 2013, respectively.

Compensation
Number of employees awarded variable and other compensation

Other
2014

Other
2013

MRTC 1
employees
Total
MRTC 1
employees
Total
Number of employees awarded variable compensation
801
41,008
41,809
503
41,220
41,723
   of which unrestricted cash
801
41,008
41,809
503
41,220
41,723
   of which share awards
789
6,794
7,583
486
7,077
7,563
   of which performance share awards
764
988
1,752
461
1,230
1,691
   of which Contingent Capital Awards
767
5,124
5,891
470
5,209
5,679
   or which other cash awards
63
230
293
62
283
345
Number of employees awarded other variable compensation
6
1,546
1,552 2
3
2,186
2,189 2
Sign-on awards
13
203
216
6
166
172
–
357
357
0
369
369
Guaranteed bonuses
9
129
138
9
132
141
1
Excludes individuals who may have been classified as MRTC according to regulatory requirements of jurisdictions outside of Switzerland, particularly US-based revenue producers in Invest-
ment Banking and branch managers of the US Wealth Management Clients business within the Private Banking Wealth Management division, who were classified as Covered Employees
by the US Federal Reserve, and PRA Code Staff.
2
Includes employees who received cash severance awards for termination of employment as of December 31, 2014 and 2013.
Compensation awarded to Material Risk Takers and
Controllers
The 801 employees classified as MRTC were awarded total com-
pensation of CHF 1,644 million for 2014 and total variable com-
pensation of CHF 1,134 million for 2014, of which CHF 943 mil-
lion, or 83%, was deferred. MRTC received 50% of their deferred
compensation for 2014 in the form of performance share awards
or other awards which are subject to performance-based malus
provisions. The number of employees classified as MRTC in 2014
increased compared to 2013, primarily as a result of all UK man-
aging directors being classified as “PRA Code Staff”.
Compensation awarded to Material Risk Takers and Controllers

2014

2013
For
Unrestricted
Deferred
Total
Unrestricted
Deferred
Total
Fixed compensation (CHF million)

Total fixed compensation
492
–
492
247
–
247
Variable incentive compensation (CHF million)

Unrestricted cash
191
–
191
138
–
138
Share awards
–
278
278
–
255
255
–
426
426
–
407
407
–
191
191
–
177
177
Other cash awards
–
48
48
–
125
125
Total variable incentive compensation
191
943
1,134
138
964
1,102
Other variable compensation (CHF million)

5
–
5
1
–
1
Sign-on awards
–
13
13
0
5
5
–
–
–
0
–
0
Total other variable compensation
5
13
18
1
5
6
Total compensation (CHF million)

Total compensation
688
956
1,644
386
969
1,355
   of which guaranteed bonuses 1
2
5
7
3
11
14
1
Guaranteed bonuses may be awarded as variable incentive compensation or sign-on awards.

208
Group compensation and benefits expense
Compensation and benefits expenses recognized in the current
year income statement include salaries, fixed allowances, vari-
able compensation, benefits and employer taxes on compensation.
Variable compensation expense mainly reflects the unrestricted
cash compensation for the current year, amortization of deferred
compensation awards granted in prior years, and severance, sign-
on and commission payments. Deferred variable compensation
granted for the current year is expensed in future periods during
which it is subject to future service, performance, malus criteria
and other restrictive covenants.
In 2014, total compensation and benefits expenses were sta-
ble compared to 2013, as higher variable compensation expense,
related to higher amortization expense from deferred compensa-
tion awards granted in prior years, was largely offset by lower sal-
ary expense, reflecting our cost efficiency initiatives.
Group compensation and benefits expense
in 2014
2013

Current
Deferred

Current
Deferred

compen-
compen-

compen-
compen-

December 31
sation
sation
Total
sation
sation
Total
Fixed compensation expense (CHF million)

Salaries
5,417
18
5,435
5,525
–
5,525
Social security 1
793
–
793
778
–
778
Other
657 2
–
657
800 2
–
800
Total fixed compensation expense
6,867
18
6,885
7,103
–
7,103
Variable incentive compensation expense (CHF million)

Unrestricted cash
1,653
–
1,653
1,570
–
1,570
Share awards
36
921 3
957
18
814 3
832
–
611
611
–
590
590
Contigent Capital Awards
–
214
214
–
–
–
Capital Opportunity Facility Awards
–
13
13
–
–
–
Plus Bond awards
–
36
36
–
37
37
2011 Partner Asset Facility awards 4
–
7
7
–
77
77
Adjustable Performance Plan share awards
–
–
–
–
31
31
Adjustable Performance Plan cash awards
–
–
–
–
4
4
Restricted Cash Awards
–
92
92
–
145
145
Scaled Incentive Share Units 5
–
(3)
(3)
–
41
41
Incentive Share Units 5
–
–
–
–
(3)
(3)
2008 Partner Asset Facility awards 4
–
87
87
–
93
93
Other cash awards
–
404
404
–
434
434
Discontinued operations
–
(8)
(8)
(6)
(21)
(27)
Total variable incentive compensation expense
1,689
2,374
4,063
1,582
2,242
3,824
Other variable compensation expense (CHF million)

Severance payments
152
–
152
113
–
113
Sign-on payments
13
–
13
18
–
18
Commissions
221
–
221
198
–
198
Total other variable compensation expense
386
–
386
329
–
329
Total compensation expense (CHF million)

Total compensation expense
8,942
2,392
11,334 6
9,014
2,242
11,256 6
1
Represents the Group’s portion of employees’ mandatory social security.
2
Includes pension and other post-retirement expense of CHF 361 million and CHF 490 million in 2014 and 2013, respectively.
3
Includes CHF 19 million and CHF 23 million of compensation expense associated with other share awards granted in 2014 and 2013, respectively.
4
Includes the change in the underlying fair value of the indexed assets during the period.
5
Includes forfeitures.
6
Includes severance and other compensation expense relating to headcount reductions of CHF 275 million and CHF 216 million in 2014 and 2013, respectively.

Compensation
Group estimated unrecognized compensation expense
The following table shows the estimated compensation expense
that has not yet been recognized through the income statement for
deferred compensation awards granted for 2014 and prior years
that were outstanding as of December 31, 2014, with comparative
information for 2013. These estimates were based on the fair
value of each award on the grant date, taking into account the cur-
rent estimated outcome of relevant performance criteria and esti-
mated future forfeitures. No estimate has been included for future
mark-to-market adjustments.
Group estimated unrecognized compensation expense
in Deferred compensation
2014
Deferred compensation
2013

For

For

For
prior-year

For
prior-year

2014
awards
Total
2013
awards
Total
Estimated unrecognized compensation expense (CHF million)

Share awards
643
762 1
1,405
823
804 1
1,627
533
231
764
660
221
881
418
210
628
433
–
433
Capital Opportunity Facility awards
–
5
5
–
–
–
Plus Bond awards 2
–
4
4
–
18
18
–
–
–
–
11
11
Adjustable Performance Plan cash awards
–
–
–
–
13
13
–
41
41
–
136
136
Other cash awards
55
166
221
136
111
247
Estimated unrecognized compensation expense
1,649
1,419
3,068
2,052
1,314
3,366
1
Includes CHF 39 million and CHF 39 million of estimated unrecognized compensation expense associated with other share awards granted to new employees in 2014 and 2013, respec-
tively, not related to prior years.
2
Represents share awards reallocated to Plus Bond awards through the employee voluntary reallocation offer, with vesting in 2016, after consideration of estimated future forfeitures.
u Refer to “Discontinued compensation plans” for descriptions of the awards
granted in years prior to 2014.
Impact of share-based compensation on shareholders’
equity
In general, the income statement expense recognition of share-
based awards on a pre-tax basis has a neutral impact on share-
holders’ equity because the reduction to shareholders’ equity
from the expense recognition is offset by the obligation to deliver
shares, which is recognized as an increase to equity by a cor-
responding amount. Shareholders’ equity includes, as additional
paid-in capital, the tax benefits associated with the expensing and
subsequent settlement of share-based awards.
Prior to 2011, the Group covered its share delivery obligations
to employees primarily by purchasing shares in the market. When
the Group purchases shares from the market to meet its share
delivery obligations, these purchased shares reduce equity by the
amount of the purchase price.
For the period 2011-2013, share delivery obligations were cov-
ered mainly through issuances of shares from conditional capital.
In the second half of 2013, the Group resumed purchasing shares
in the market to cover a portion of its share delivery obligations. In
2014, the majority of the Group’s share delivery obligations was
covered through market purchases. Currently, the Group intends
to cover the majority of its future share delivery obligations through
market purchases.
Share-based awards outstanding
At the end of 2014, there were 133.2 million share-based awards
outstanding, including 77.1 million share awards, 48.2 million per-
formance share awards, and 7.3 million Adjustable Performance
Plan share awards. The remaining balance consisted of other
awards relating to prior years that are no longer part of current
compensation plans.
The number of shares issued as of the end of 2014 was 1,607
million. Additionally, the Group had 550 million shares available
to support contingent capital instruments, including 499 million
shares relating to high-trigger capital instruments already issued
in the market that must convert into common equity pursuant to
certain trigger events under their terms, including if the CET1 ratio
falls below 7% or upon a non-viability event.
These instruments increase loss-absorbing regulatory capital
without diluting shareholders’ equity at the time of their issuance.
The number of outstanding share-based awards represented 6.2%
of shares both issued and potentially issuable in respect of contin-
gent capital instruments as of the end of 2014. The Group intends
to continue to use CCA in future years as part of its compensation
program, partly in lieu of share-based awards. The Group’s inten-
tion is to decrease the number of outstanding share-based awards
to approximately 5% of shares issued and potentially issuable over
the long term.

210
Subsequent activity
In early 2015, the Group granted approximately 37.2 million new
share awards and 30.7 million new performance share awards with
respect to performance in 2014. In lieu of granting additional share
awards in 2015, the Group awarded CHF 360 million of deferred
variable compensation in the form of CCA (equivalent to approxi-
mately 17.8 million share-based awards, had they been granted).
In the first half of 2015, the Group plans to settle 65.1 mil-
lion deferred awards from prior years, including 35.8 million
share awards, 22.5 million performance share awards, 6.8 million
Adjustable Performance Plan share awards. The Group plans to
meet this delivery obligation through market purchases and intends
to use available conditional capital only to support the equity posi-
tion of the Group in the event that the look-through CET1 ratio
appears likely to fall short of the Basel III capital requirements as
implemented by the “Swiss Too Big to Fail” legislation.
u Refer to “Regulatory capital and ratios – Group” in III – Treasury, Risk, Balance
sheet and Off-balance sheet – Capital management – BIS Capital Metrics for
more information.
Value changes of outstanding deferred awards
Employees experience changes to the value of their deferred com-
pensation awards during the vesting period due to both implicit
and explicit value changes. Implicit value changes primarily reflect
market driven effects, such as changes in the Group share price,
changes in the value of the Capital Opportunity Facility (COF),
CCA and underlying Plus Bond assets or foreign exchange rate
movements. Explicit value changes reflect risk adjustments trig-
gered by malus provisions related to negative performance in the
performance share awards, positive or negative performance for
the Adjustable Performance Plan share awards or the malus provi-
sions in all deferred awards. The final value of an award will only be
determined at settlement.
u Refer to “Discontinued compensation plans” for further information on COF,
CCA, Plus Bond and Adjustable Performance Plan awards.
The following table provides a comparison of the fair values of out-
standing deferred compensation awards at the end of 2013 and
2014, respectively, indicating the value of changes due to implicit
and explicit adjustments. For 2014, the change in fair value for all
outstanding deferred compensation awards was primarily due to
implicit adjustments driven by changes in the Group share price,
foreign exchange rate movements and changes in the value of the
COF and CCA during the period.
Fair value of outstanding deferred compensation awards

Change in value

in / end
2013
Implicit
Explicit
2014
Share-based awards (CHF per unit)

Share awards granted for 2011 1
27.3
(2.2)
0.0
25.1
27.3
(2.2)
0.0
25.1
28.1
(3.0)
0.0
25.1
Performance share awards granted for 2011 1
27.3
(2.2)
0.0
25.1
27.3
(2.2)
0.0
25.1
28.1
(3.0)
0.0
25.1
30.2
(2.2)
0.8
28.8
Cash-based awards (CHF per unit)

2008 Partner Asset Facility awards (PAF)
2.01
0.39
0.00
2.40
Adjustable Performance Plan cash awards granted for 2010
1.05
0.12
0.03
1.20
Plus Bond awards granted for 2012 2
1.02
0.40
0.00
1.42
Contingent Capital Award for 2013 3
1.00
0.11
0.00
1.11
Contingent Capital Award from converted PAF2 award
1.00
0.13
0.00
1.13
Capital Opportunity Facility from converted PAF2 award
1.00
0.16
0.00
1.16
1
Represents awards granted in January 2012 for 2011.
2
3

Compensation
Executive Board compensation
Governance
Compensation payable to the Executive Board members, including
the CEO, is approved by the Board, based on the recommendation
of the Compensation Committee. The compensation of the Execu-
tive Board is approved annually at the AGM either as a maximum
aggregate amount or as maximum partial amounts for the respec-
tive compensation components pursuant to the Compensation
Ordinance. In determining its recommendation to the Board, the
Compensation Committee assesses the performance of the Exec-
utive Board members, including the CEO, based on actual perfor-
mance compared to pre-defined individual objectives and targets.
Basis of determining compensation for Executive Board
members
For 2014, the Compensation Committee defined both individual
target levels of incentive compensation, and individual caps, both
expressed as a multiple of base salary, limiting the total amount
of compensation that may be awarded. The Compensation Com-
mittee also established financial and non-financial performance
criteria for each Executive Board member, including the CEO,
which were published in the 2013 Annual Report – Compensation
section.
In determining the compensation targets and caps, competi-
tive market levels of compensation for each individual role, with
reference to the relevant group of peers were taken into account.
The market data on executive compensation levels was provided to
the Compensation Committee by Johnson Associates, which was
the compensation adviser at the time the 2014 targets and caps
were set.
u Refer to “Competitive benchmarking” in Group compensation for a list of peer
groups.
The criteria used to assess the individual performance of the
Executive Board members consist of pre-defined objective finan-
cial measures consistent with the Group’s KPIs, as well as qual-
itative factors. The Compensation Committee has discretion to
recommend to the Board that the incentive awards resulting from
this performance assessment be adjusted by a factor of up to
plus or minus 20%. The Board is committed to aligning incen-
tive compensation with challenging performance criteria, and this
element of flexibility enables the Board to determine the final indi-
vidual awards after taking into account prevailing market conditions
among other factors. This discretion is limited by the individual
cap levels described above, and total Executive Board incentive
compensation is also subject to the overall cap of 2.5% of Group
strategic net income.
Performance evaluation for 2014
In January 2015, the Compensation Committee completed its per-
formance evaluation for the 2014 financial year for the Group and
the individual assessments of the Executive Board members. The
Compensation Committee compared the outcome of the financial
measurements to the pre-defined targets for 2014 as set out in
the 2013 Compensation Report, excluding significant litigation pro-
visions and settlements as approved by the Compensation Commit-
tee as well as fair value gains and losses from movements in own
credit spreads, FVA and adjustments to risk-weighted assets due
to methodology changes.
The CEO presented a qualitative assessment of the individ-
ual performance of each Executive Board member, which was
then reviewed by the Compensation Committee. In the case of the
CEO, the qualitative assessment was carried out by the Compen-
sation Committee in consultation with the Chairman of the Board.
The financial performance criteria for 2014 shown in the table
below encompass the performance against profitability and cost
targets, as well as progress towards the wind-down of non-stra-
tegic positions. The progress of the wind-down of non-strategic
units was measured based on the achievement of reduction tar-
gets for risk-weighted assets and Swiss leverage exposure, as well
as the attainment of non-strategic pre-tax income targets. The
qualitative assessment took into account financial performance in
areas that did not specifically form part of the previously defined
quantitative financial targets, as well as non-financial elements of
performance at the Group and divisional levels.
u Refer to II – Operating and financial review for a description of strategic and
non-strategic results.

212
2014 performance against targets

Divisional
Shared

2014 Targets

head
Services head
2014 Performance against Targets

PBWM
IB
CFO
Other
Below Target Above
Financial performance criteria (60% weighting)
Group

1 ROE (after tax) –
12.5%
30%
30%
25%
25%
strategic results 1, 2

1 Cost/income ratio –
71.0%
–
–
15%
20%

1 Wind-down of
35.0% year-on-year reduction of risk-weighted assets (2.5% weighting)
–
–
10%
–
non-strategic units
and leverage exposure (2.5% weighting) and achievement

of budgeted non-strategic pre-tax income (5% weighting) 3, 4, 5

Divisional

1 Wind-down of
–
10%
–
–
non-strategic

units (IB)
of budgeted non-strategic pre-tax income (5% weighting) 2, 3

1 Return on regulatory
11.3% 7
–
20%
–
–
capital (IB) 2, 6

1 Wind-down
10%
–
–
–
of non-strategic

units (PBWM)
of budgeted non-strategic pre-tax income (5% weighting) 3, 5

1 Cost/income
69.0%
20%
–
–
–
ratio (PBWM) 5

1 Divisional total
2014 budget expenses on a foreign exchange neutral basis
–
–
10%
15%
operating expenses

Non-financial criteria (40% weighting)
1 Business
Compensation Committee assessment of strategy execution,
15%
15%
15%
15%
and infrastructure
business development, performance of businesses and regions

development
and delivery of major projects

1 Other
Compensation Committee assessment of capital strength,
25%
25%
25%
25%
performance
human capital management, control/operational/reputational

risk management, involvement in client activities, partnership

and firm focused behavior

PBWM – Private Banking Wealth Management; IB – Investment Banking

1
Refer to “Core Results” in II – Operating and financial review for further information on strategic results.
2
Excludes FVA of CHF (279) million, of which CHF (108) million are strategic and CHF (171) million are non-strategic.
3
Risk-weighted assets in 2013 are adjusted for methodology changes implemented in the first quarter 2014.
4
Non-strategic pre-tax income is based on reported results, excluding fair value gains from movements in own credit spreads of CHF 545 million and FVA of CHF (171) million.
5
Based on reported results, excluding Private Banking Wealth Management litigation expenses of CHF 1,618 million due to the final settlement of all US cross-border matters.
6
Calculated using income after tax denominated in USD; assumes tax rate of 30% and capital allocated based on average of 10% of average risk-weighted assets and 2.4% of average
leverage exposure.
7
Beginning in the second quarter 2014, the majority of the balance sheet usage related to a portfolio of high-quality liquid assets managed by the Treasury function and previously recorded
in the Corporate Center has been allocated to the business divisions. Investment Banking’s return on regulatory capital has been revised to reflect the impact of this change on the division’s
Swiss leverage exposure.
Financial performance evaluation
At the Group level, the Compensation Committee noted the weak-
ening of the profitability indicators in 2014, while the non-strategic
results improved compared to the prior year. Reported core pre-
tax income of CHF 3.2 billion in 2014 was down 8% compared
to 2013, reflecting higher operating expenses which included the
impact of the US cross-border settlement in May, partly offset
by higher revenues. Excluding the impact from FVA, the Group’s
strategic after-tax return on equity in 2014 was 12.4%, slightly
below the target return of 12.5%, reflecting the Group’s focus on
a strengthened capital base. Excluding the impact from FVA, the
Group’s strategic cost/income ratio in 2014 was 72.1% compared
to the target of 71.0%, reflecting lower net revenues. The Group
made good progress in winding down its non-strategic positions
in 2014, achieving a 35% reduction in risk-weighted assets and a
25% decrease in Swiss leverage exposure compared to the prior
year, and slightly below the year-end blended reduction target of
35%. Despite these achievements, non-strategic operating results
were also slightly below target, mainly due to additional litigation
provisions.
In Private Banking Wealth Management, the cost/income
ratio for 2014, excluding the US cross-border settlement charge
of CHF 1,618 million, was 69.7% compared to a target of 69.0%,
reflecting lower revenues from lower performance fees and lower
net interest income. Strategic pre-tax income improved by 3%
compared to 2013, due to a 5% reduction in expenses driven by
significant efficiency improvements that was partly offset by lower
revenues. The non-strategic unit also made good progress during

Compensation
the year in comparison to the prior year, with risk-weighted assets
reduced by 4% and Swiss leverage exposure reduced by 48%,
exceeding the year-end blended reduction target of 35%, as well
as on target non-strategic operating results.
In Investment Banking, the return on regulatory capital exclud-
ing FVA was 8.8% compared to a target of 11.3%, reflecting the
continued impact from the non-strategic unit. In addition the Com-
pensation Committee acknowledged the 17% return on regula-
tory capital delivered by the strategic businesses in 2014, which
reflected improved capital efficiency and stable revenues of CHF
13.1 billion. The Investment Banking non-strategic unit made sig-
nificant progress in winding-down capital positions when com-
pared to the prior year, reducing risk-weighted assets by 51% and
Swiss leverage exposure by 27%, exceeding the year-end blended
reduction target of 35%. This measure was more than offset by
the higher than expected loss in the non-strategic unit.
For the Shared Services functions, the Compensation Com-
mittee acknowledged the robust control environment combined
with cost discipline and efficiency gains, while transitioning the
business to new regulatory requirements, making significant
progress on a number of major infrastructure projects. This was
reflected in the achievement of lower total operating expenses
when compared to the budgeted expenses for 2014, exceeding
the target for the year.
u Refer to “Core results”, “Private Banking Wealth Management”, “Investment
Banking” and “Corporate Center” in II – Operating and financial review for discus-
sions of the individual line items.
Non-financial performance evaluation
In connection with the non-financial performance criteria, the
Compensation Committee, in conjunction with evaluations pro-
vided by the CEO, assessed the business and infrastructure devel-
opment in terms of strategy execution, performance of the busi-
nesses and regions and delivery of major projects.
In regards to the business and infrastructure related criteria,
the Compensation Committee recognized the continued strong
efforts to reshape the businesses in response to the evolving
environment.
Within the Private Banking Wealth Management division,
special consideration was given to the launch of a number of
growth initiatives such as the lending program for the ultra-high-
net-worth-individuals client segment, where loan volumes grew
39% in 2014. In addition, the Private Banking Wealth Man-
agement division had several new product initiatives and strate-
gies in place to expand the business into growing regions in order
to counter the impact of the negative interest rate environment.
2014 was a critical year for digital innovation for the division. The
development of the Digital Private Banking is expected to stream-
line our existing infrastructure and to deliver a global, unified and
cutting-edge digital private banking experience to our clients.
The Private Banking Wealth Management division saw net new
assets grow 3.5% in 2014, making good progress towards the
long-term target. The Compensation Committee acknowledged
these achievements as well as the high return on regulatory capital
of 29% achieved by the strategic business in 2014.
In the Investment Banking division, the Compensation Com-
mittee recognized the division’s stable revenues despite the chal-
lenging and volatile market environment. The division has seen a
broad-based increase in client activity across many of the busi-
nesses and played key roles in landmark initial public offerings
(IPOs), advancing to number four in global IPO rankings. The
division has been recognized around the world with a number of
additional important rankings and awards. Furthermore, the Com-
pensation Committee assessed the progress achieved in terms of
other performance criteria such as capital strength, human capi-
tal management, risk management and building a strong compli-
ance culture. The Compensation Committee recognized the prog-
ress made towards achieving a more balanced allocation of capital
between our Private Banking Wealth Management and Invest-
ment Banking divisions in order to improve operating efficiency and
drive returns. Both divisions progressed in the winding-down of the
non-strategic operations and reducing their capital consumption.
The Private Banking Wealth Management division completed
the sale of the domestic private banking business booked in Ger-
many and the sale of the local affluent and upper affluent business
in Italy, both notable milestones for the division. The Investment
Banking division sold the commodities trading portfolio which is
reducing capital consumption in the division and it is expected to
continue to improve our capital efficiency as the sale is completed.
On the Group level, strong consideration was given to reaching the
Basel III look-through CET1 ratio of 10.1% by year-end 2014 given
the increasingly stringent regulatory environment.
For the Shared Services functions, the Compensation Com-
mittee recognized the significant progress in the global legal entity
restructuring project, substantial rationalization of IT applications
which reduced levels of complexity and operational risk while align-
ing to business and regulatory needs, and the delivery of new plat-
forms and system initiatives. In addition, the Compensation Com-
mittee acknowledged the ongoing strong focus on the Group’s
human capital strategy, which resulted in considerable progress
in the reduction of involuntary attrition and early tenure attrition.
During the year, an increase in the female population across all
corporate titles was also achieved and continued progress made
in internal hiring in line with our ‘grow your own’ strategy, which
helped foster internal career development.
With respect to internal control, compliance and risk manage-
ment considerations, the Compensation Committee was provided
with input from the Audit and Risk Committees. The Compensa-
tion Committee acknowledged the good efforts made throughout
the Group to improve the internal control environment through vari-
ous measures, including compliance training, raising awareness
about business conduct behaviors, improved risk management
practices and the implementation of an enhanced operational risk
framework.

214
In terms of operating efficiency, the Group achieved cost sav-
ings of CHF 3.5 billion as of year-end 2014, compared to the
adjusted run rate cost base for the first half of 2011, measured at
constant foreign exchange rates and adjusted to exclude business
realignment and other significant non-operating expenses as well
as variable compensation expenses. This cost efficiency program
is expected to achieve the target of over CHF 4.5 billion cost sav-
ings by year-end 2015. Furthermore, an additional 3,200 deploy-
ments to the Centers of Excellence were completed during 2014
showing a continued strong momentum in building global talent
and services.
2014 targets and caps for Executive Board members

Target levels
Cap levels

Range for

Range for

Executive

Executive

Board

Board

members
CEO
members
CEO
Multiples of base salaries
Short-term awards

   Unrestricted cash
0.3 – 0.8
0.5
0.6 – 1.4
0.8
   Short-term incentive award
0.5 – 1.3
0.8
0.9 – 2.1
1.2
Long-term incentive award
0.8 – 2.1
1.4
1.5 – 3.5
2.0
Executive Board compensation for 2014 (audited)

Fixed compensation

Pension

Total

and similar
Total

variable
Salaries

benefits
fixed
Total

Unrestricted
Value of
Value of
compen-
and fixed
Dividend
and other
compen-
compen-
in
cash
STI awards
LTI awards 1
sation
allowances
equivalents 2
benefits 3
sation
sation 4
2014 (CHF million,

except where indicated)

11 members
7.94
13.98 5
17.18
39.10
19.45
2.98
2.53
24.96
64.06
   % of total compensation
12%
22%
27%

30%

of which CEO:

Brady W. Dougan
1.52
2.28
3.05
6.85
2.50
0.32
0.03
2.85
9.70
16%
24%
31%

26%

1
The LTI awards are net of CHF 4.7 million as part of the voluntary downward adjustment to the Executive Board compensation awards for 2014 resulting from the final settlement of all US
cross-border matters. These awards vest over a five-year period, payable on the third, fourth and fifth anniversaries of the grant date. The final value at settlement depends on the achieve-
ment of pre-defined performance criteria linked to the average relative total shareholder return and average strategic return on equity.
2
Share awards granted prior to January 1, 2014 carry the right to an annual payment equal to the dividend payable on each Group share. The dividend equivalents were paid in respect of
awards granted in prior years and were delivered in cash, consistent with dividends paid on actual shares.
3
Other benefits consist of housing allowances, expense allowances, child allowances and a carried interest award in certain alternative investment funds with a fair value at the time of grant
of CHF 1.8 million awarded to Robert S. Shafir. The initial value of this award is determined by making assumptions about the return that will be realized on the funds over their lifetime of
up to fifteen years. For the total compensation awarded to members of the Executive Board, the Group made payments of CHF 4.3 million in 2014 and CHF 4.7 million in 2013 to cover the
mandatory employer social security contributions as required under the social security laws applicable to the individual Executive Board members based on their domicile and employment
status. These contributions do not form part of the Executive Board members’ compensation.
4
Does not include CHF 8.6 million of charitable contributions made by the Group for the allocation of which the CEO and three other Executive Board members were able to make
recommendations.
5
STI awards for 2014 comprise CHF 13.15 million performance shares as well as CHF 0.83 million granted as blocked shares and performance shares to the Executive Board members
who were categorized as PRA Code Staff, including the Executive Board member who is no longer on the Executive Board. The applicable Group share price for all share awards was CHF
20.21.
Compensation decisions
Based on the evaluation of the Group, divisional and individual per-
formance, the Board agreed with the Compensation Committee’s
conclusion that overall, the Executive Board members had met
their financial performance targets and significantly exceeded their
non-financial targets for 2014. The Board approved the Compen-
sation Committee’s recommendations on the amount of incentive
compensation to be awarded, subject to an adjustment relating to
the US cross-border settlement.
Due to the substantial impact of the US cross-border settle-
ment, the Board and Executive Board agreed to a voluntary reduc-
tion to the amounts of compensation that would otherwise have
been awarded for 2014. The total compensation for the Board was
reduced by approximately 25% and the variable compensation for
the Executive Board was reduced by the equivalent of 20% of the
amount that would have otherwise been granted. This agreement
reflects the view that the event should have consequences for the
compensation of the Group’s top supervisory and management
bodies, in order to accept the collective responsibility these bod-
ies bear in safeguarding the long-term reputation and professional
integrity of the Group’s business globally, regardless of which indi-
viduals serve as directors or officers within these bodies at any
given time.
In line with this voluntary agreement, the Compensation Com-
mittee applied a reduction affecting the members that were part of
the Executive Board at the time of the settlement. The total value
of downward adjustment was CHF 9.0 million, equivalent to 20%
of the amount that would have otherwise been granted to such
members of the Executive Board as variable compensation for
2014. Of such amount, CHF 4.7 million was deducted from the

Compensation
amount that would have been awarded as LTI awards for 2014 and
CHF 4.3 million was deducted from existing unvested LTI awards
granted for 2013. The deduction was applied equally to the 2014
and 2013 LTI awards, except for the one Executive Board member
who did not hold existing unvested LTI awards granted for 2013,
in which case the entire 20% was deducted from the amount that
would have otherwise been awarded as LTI awards for 2014.
Including the voluntary adjustment, the aggregate amount
of variable incentive compensation proposed by the Board for
approval by the shareholders at the AGM totaled CHF 39.1 mil-
lion for 2014, 17% lower than the CHF 47.4 million awarded in
2013. Including the voluntary adjustment, which was applied to LTI
awards granted for 2014, the proposed variable incentive compen-
sation for the individual members of the Executive Board averaged
5.7% above the individual target amounts and 38% below the indi-
vidual caps. The components of the awards granted are shown in
the “Executive Board compensation for 2014” table.
u Refer to “Executive Board Compensation proposed for approval at the 2015
AGM” in Executive Board compensation for more information.
2014 performance against targets for CEO
2014 Targets

CEO
2014 Performance against Targets

Below Target Above
Financial performance criteria (60% weighting)
Group

1 ROE (after tax) –
12.5%
30%

1 Cost/income ratio –
71.0%
20%

1 Wind-down of
10%
non-strategic units

of budgeted non-strategic pre-tax income (5% weighting) 3, 4, 5

Non-financial criteria (40% weighting)
1 Business
Compensation Committee assessment of strategy execution, business development,
15%
and infrastructure
performance of businesses and regions and delivery of major projects

development

1 Other
Compensation Committee assessment of capital strength, human capital
25%
performance
management, control/operational/reputational risk management,

involvement in client activities, partnership and firm focused behavior

1
Refer to “Core Results” in II – Operating and financial review for further information on strategic results.
2
Excludes FVA of CHF (279) million, of which CHF (108) million are strategic and CHF (171) million are non-strategic.
3
Risk-weighted assets in 2013 are adjusted for methodology changes implemented in the first quarter 2014.
4
Non-strategic pre-tax income is based on reported results, excluding fair value gains from movements in own credit spreads of CHF 545 million and FVA of CHF (171) million.
5
Based on reported results, excluding Private Banking Wealth Management litigation expenses of CHF 1,618 million due to the final settlement of all US cross-border matters.
2014 total compensation of the CEO and highest paid
Executive Board member
In its recommendation to the Board regarding incentive compen-
sation for the CEO Mr. Dougan, who was also the highest paid
Executive Board member, the Compensation Committee, in con-
sultation with the Chairman, considered the solid financial position
of the Group in 2014. Excluding the impact from FVA, the Group
achieved a strategic after-tax return on equity of 12.4% in 2014 with
continued momentum on strategy execution despite the challenging
and volatile market conditions faced by the divisions and increas-
ingly stringent regulatory environment. Excluding the impact from
FVA, the Group’s strategic cost/income ratio was 72.1% in 2014
compared to the target of 71.0%, reflecting lower net revenues. The
Group made good progress in winding down its non-strategic posi-
tions in 2014, achieving a 35% reduction in risk-weighted assets
and a 25% decrease in Swiss leverage exposure compared to the
prior year, and slightly below the year-end blended reduction tar-
get of 35%. Despite these achievements, non-strategic operating
results were also slightly below target, mainly due to additional liti-
gation provisions. The Compensation Committee also considered
the achievement of capital targets, in particular under Mr. Dougan’s
leadership, the achievement of Basel III look-through CET1 ratio of
10.1% at year-end 2014, exceeding the 10.0% year-end target. Fur-
thermore, the Group improved its look-through Swiss leverage ratio
to 3.9% at year-end 2014 from 3.7% at year-end 2013, approach-
ing the FINMA requirement of 4.1% applicable in 2019. The Com-
pensation Committee also recognized the progress made towards
achieving the Group’s challenging target of over CHF 4.5 billion in
cost savings by year-end 2015. In terms of strategy execution, the
Compensation Committee noted the growth and improvement of the
strategic franchises with both divisions looking to innovative solu-
tions for long-term sustainable business models. They also noted the
strong emphasis on the reduction of risk-weighted assets and Swiss
leverage exposure especially the divestitures and sales which were
notable milestones helping the Group’s progress towards winding
these businesses down. As a particular achievement in 2014, the
Compensation Committee acknowledged Mr. Dougan’s strong lead-
ership in managing the US cross-border settlement and its conse-
quences. Given the strong performance of Mr. Dougan during 2014,
the Board approved the recommendation of the Compensation Com-
mittee to award Mr. Dougan unrestricted cash of CHF 1.52 million, a
STI award of CHF 2.28 million and a LTI award of CHF 3.05 million

216
after the voluntary downward adjustment, representing, in aggregate,
101% of his target compensation set for 2014.
Executive Board compensation for 2013

Fixed compensation

Pension

Total

and similar
Total

variable
Salaries

benefits
fixed
Total

Unrestricted
Value of
Value of
compen-
and fixed
Dividend
and other
compen-
compen-
in
cash
STI awards
LTI awards 1
sation
allowances
equivalents 2
benefits 3
sation
sation 4
2013 (CHF million,

except where indicated)

9 members
3.93
21.86 5
21.58
47.37
14.08
2.74
0.58
17.40
64.77
6%
34%
33%

22%

of which CEO:

Brady W. Dougan
0.69
2.77
3.46
6.92
2.50
0.36
0.01
2.87
9.79
7%
28%
35%

26%

1
The LTI awards totaling CHF 21.58 million initally awarded does not reflect the voluntary downward adjustment of CHF 4.3 million to the Executive Board compensation resulting from
the final settlement of all US cross-border matters, which is applied against LTI awards granted for 2013. These awards vest over a five year period, payable on the third, fourth and fifth
anniversaries of the grant date. The final value at vesting depends on the achievement of pre-defined performance criteria linked to the average relative total shareholder return and average
strategic return on equity.
2
Share awards granted prior to January 1, 2014 carry the right to an annual payment equal to the dividend payable on each Group share. The dividend equivalents were paid in respect of
awards granted in prior years and were delivered in a combination of cash and shares, consistent with dividends paid on actual shares.
3
Other benefits consist of housing allowances, expense allowances and child allowances.
4
Does not include CHF 4.8 million of charitable contributions made by the Group for the allocation of which the CEO and three other Executive Board members were able to make
recommendations.
5
STI awards for 2013 comprise CHF 20.56 million performance shares as well as CHF 1.3 million granted as blocked shares and performance shares to the Executive Board members
who were categorized as PRA Code Staff, including the Executive Board member who is no longer on the Executive Board. The applicable Group share price for all share awards was CHF
28.78.
Changes to the Executive Board composition in 2014
Joachim Oechslin became a member of the Executive Board effec-
tive January 1, 2014. James L. Amine and Timothy P. O’Hara
became members of the Executive Board on October 1, 2014 at
which time Eric Varvel ceased to be an Executive Board member.
For the period of the year during which these four individuals were
Executive Board members, compensation was determined and
awarded in line with the Executive Board compensation structure
described below. The compensation amounts attributable to the
period of the year during which they were Executive Board mem-
bers are included in the Executive Board Compensation for 2014
table above.
2014 compensation structure
The annual 2014 base salary was CHF 2.5 million for the CEO,
CHF 1.5 million for Executive Board members based in Switzerland
and USD 1.5 million for Executive Board members based in the US
and the UK, which remained unchanged from the prior year.
For 2014, the incentive compensation granted to each Execu-
tive Board member prior to the LTI awards downward adjustment
consisted of:
p 20% as unrestricted cash payment, except for PRA Code
Staff, who received 10% in the form of unrestricted cash and
10% in the form of blocked share awards;
p 30% as STI awards in the form of a deferred performance
share award with cliff vesting after three years; and
p 50% as LTI awards in the form of both shared-based awards
and CCA in equal portions, with vesting on the third, fourth
and fifth anniversaries of the grant date, subject to pre-defined
performance conditions.
An overview of the vesting timeline for the Executive Board short-
term and long-term award plans is shown in the chart “Key fea-
tures of Executive Board compensation – 2014”. These awards
are described in more detail below.
Three of the individuals who served on the Executive Board
during part or all of 2014 qualified as PRA Code Staff for 2014. A
portion of their compensation was awarded as a fixed allowance,
which was taken into consideration when variable compensation
was determined.

Compensation
Key features of Executive Board compensation – 2014
Approach Composition Key featuresVesting timeline
(payout in year after grant)
Unrestricted cash, except for PRA Code Staff,
who will receive 10% in unrestricted cash
and 10% in blocked share awards
Full award at grant
In addition to malus provisions, a negative
formula-based adjustment is applied to all
outstanding awards, subject to the profitability
of the Group and divisions
Full
award
cliff
vested
1
⁄3
1
⁄3
1
⁄3
1
⁄3
1
⁄3
1
⁄3
The amount payable at vesting for all LTI
awards ranges from 0 to 200% of the grant
value and will be determined based on:
p Total shareholder return relative to peers,
based on a rolling average over three years
(primary metric)
p Average ROE compared to targets on
strategic results (secondary metric)
The CCA tranche is loss-absorbing and
subject to write-down based on the Group’s
capital position
p Compensation decisions are based
on pre-defined financial and
non-financial performance
criteria
p Individual target and cap levels
for incentive compensation
p Cap on aggregate incentive
compensation awarded to Execu-
tive Board members (2.5% of Group
strategic net income)
p 80% deferred, and final amounts
subject to performance-based
vesting criteria and malus
provisions
Year 1 2 3 4 5
50%
STIawards
50%
LTIawards
Share-based
award:
25%
Contingent
Capital Award
(CCA):
25%
Cash:
20%
Performance
share award:
30%
Types of awards
Unrestricted cash
Unrestricted cash awards are payable in cash after grant. The
awards are intended to recognize the Executive Board members’
performance for the most recent prior year.
Short-term incentive (STI) award
STI awards are granted in the form of performance share awards,
and are scheduled to cliff vest on the third anniversary of the grant
date, subject to the same performance conditions as the perfor-
mance share awards granted to managing directors and qMRTC.
Performance share awards related to performance for years prior
to 2014 are deferred ratably over three years with one third of the
award vesting on each of the three anniversaries of the grant date.
u Refer to “Performance share awards” in Group compensation for performance-
based adjustment criteria.
More specifically, for the heads of the divisions reporting a pre-tax
loss, the full balance of their unvested STI awards are reduced by
15% per CHF 1 billion of loss and the calculation of the reduction
is performed on a pro-rata basis, based on the actual loss amount.
If the Group reports a negative strategic ROE, the full balance of
their unvested STI awards are reduced by a percentage amount
equal to the negative strategic ROE. In the case of both a negative
strategic ROE and a divisional pre-tax loss, the negative adjust-
ment applied will be equal to the larger figure of the negative stra-
tegic ROE or 15% per CHF 1 billion of pre-tax loss.
For the CEO and Executive Board members who lead a
Shared Services function, the malus provision for negative per-
formance will affect outstanding awards only if the Group has a
negative strategic ROE.
u Refer to “Potential downward adjustments of performance shares and STI
awards” in Group compensation for specific downward adjustments to be applied.
Long-term incentive (LTI) award
LTI awards are deferred over a period of five years and vest in
three equal tranches, one on each of the third, fourth and fifth
anniversaries of the grant date, subject to satisfying pre-defined
performance vesting conditions. The amount due at vesting is
determined based on the following performance criteria and condi-
tions, which are measured on a tranche-by-tranche basis over the
three calendar years preceding the year in which vesting occurs:
p Average of the Relative Total Shareholder Return (RTSR)
achieved during each of the three years prior to vesting, cal-
culated by reference to the average total shareholder return
achieved by a group of peer firms, is the primary performance
metric; and
p Average strategic ROE achieved during the three years prior
to vesting compared to the strategic ROE targets set for the
respective years acts as a further adjustment, increasing or
decreasing the amount payable by up to 25%.
p The amount payable at vesting of each tranche is subject to
an overall cap of 200% of the initial LTI award value for that
tranche.

218
RTSR is the Group’s total shareholder return compared to the
average total shareholder return of peers. Total shareholder return
is equal to the appreciation or depreciation of a particular share,
plus any dividends, over a given three-year period, expressed as a
percentage of the share’s value at the beginning of the three-year
measurement period. The peer group used for the RTSR calcula-
tion is the same group of twelve peer firms shown in the “2014
peer groups and performance criteria” table. The RTSR achieve-
ment level can increase or decrease the amount scheduled to vest
on a sliding scale basis and is subject to a cap as follows:
p Achievement of average RTSR of 150% (where the Group
RTSR is 50% greater than that of the peer group) or greater
results in a maximum upward adjustment of 100% (cap) for
such a tranche;
p Achievement of average RTSR of 100% (where the Group
RTSR is the same as that of the peer group) results in an LTI
payout that equals the grant value for such tranche (no upward
or downward adjustment);
p Achievement of RTSR of 50% (where the Group RTSR falls
50% below that of the peer group) or below results in the total
forfeiture of such tranche (downward adjustment of 100%);
and
p Achievement of average RTSR between 50% and 150% of
that of the peer group results in an upward or downward adjust-
ment between negative 100% and positive 100%, applied on
a sliding scale basis.
Following the RTSR calculation above, the amount payable is sub-
ject to a further upward or downward adjustment of up to 25%,
depending on the average strategic ROE achieved during the three
years prior to vesting compared to the pre-defined strategic ROE
targets for the corresponding three-year period. The maximum
upward adjustment of 25% applies if the average strategic ROE
achieved is 200% of the target. The ROE adjustment, however,
cannot increase the amount payable beyond the overall cap equal
to 200% of the initial award.
For 2014, 50% of the LTI was structured as a share-based
award. The initial number of shares is determined at the time of
grant and is adjusted based on the RTSR and ROE over the three
year period prior to vesting.
For 2014, 50% of the LTI was delivered as CCA. This ele-
ment of the LTI has the same terms as CCA awarded to managing
directors and directors, except for the vesting and performance
metrics, which are the same as those applicable to share-based
LTI awards described above. LTI awards granted as CCA entitle
recipients to semi-annual cash payments of interest-equivalents
until settlement, but would be written down to zero if the CCA trig-
ger events described above occur. At the time of settlement, the
Group, at its discretion, may deliver a contingent capital instrument
or a cash payment based on the fair value of the CCA.
Malus and clawback provisions
All deferred compensation awards of Executive Board members
are subject to the same malus provisions as all employees with
deferred compensation as well as the additional malus provisions
that apply to Covered Employees. Consistent with the newly issued
PRA guidelines, all variable compensation granted to PRA Code
Staff as of or after January 1, 2015 is also subject to clawback.
In addition, there are performance-based malus provisions for the
STI award and specific performance targets for the LTI award.
u Refer to “Malus provisions” and “Clawback provisions” in Group compensation
for more information.
Other aspects of Executive Board compensation
Charitable contributions
Consistent with the prior three years, the Compensation Commit-
tee approved contributions which will benefit eligible registered
charities. The total amount approved for charitable contributions
was CHF 8.6 million for 2014. The CEO and three other members
of the Executive Board during 2014 were able to make recom-
mendations in respect of the allocation of the 2014 contributions
to various specific charities.
Minimum share ownership requirements
The Group applies minimum share ownership requirements for
members of the Executive Board as follows:
p CEO: 350,000 shares; and
p Other Executive Board members: 150,000 shares.
The thresholds include all Group shares held by or on behalf
of these executive employees, including unvested share-based
awards. All affected executive employees are restricted from sell-
ing shares, or from receiving their share-based awards in the form
of cash, until they fulfill the minimum share ownership require-
ments. The Group prohibits all employees from entering into
transactions to hedge the value of unvested share-based awards.
Pledging of unvested deferred awards by Executive Board mem-
bers is also not permitted unless expressly approved by the Com-
pensation Committee.

Compensation
Cash settlement of share awards
The terms of all past and future share-based awards granted to
the Executive Board were amended in 2014 to enable election of
settlement in cash or shares. The Executive Board members are
permitted to elect, at a predefined date in advance of settlement,
to receive their vested share-based awards in the form of shares,
cash or 50% in the form of shares and 50% in cash, in each case
based on the Group share price at the time of settlement. An elec-
tion to receive cash is subject to reversal if at the time of settle-
ment the Group share price is less than 75% of the share price
at the time of election. The timing and pricing of settlement will
be the same as under the previous award plan and as under the
plans of the non-Executive Board population. This change does
not affect deferred share-based awards to non-Executive Board
members, which will continue to be settled in the form of Group
shares.
Contract lengths, termination and change in control
provisions
All members of the Executive Board have employment contracts
with the Group which are valid until terminated. The notice period
for termination of employment by either the Group or the respec-
tive Executive Board member is six months. In the event of ter-
mination, there are no contractual provisions that allow for the
payment of severance awards to Executive Board members. Pre-
defined conditions for all employees apply for the payment of out-
standing deferred compensation awards, depending on whether
the termination of employment was voluntary, involuntary or the
result of a change in control. There are no other contracts, agree-
ments or arrangements with the members of the Executive Board
that provide for other types of payments or benefits in connection
with termination of employment that are not generally available to
other employees of the Group.
In the case of a change in control, the treatment of outstand-
ing awards for all employees, including Executive Board mem-
bers, will be determined by the Board upon recommendation of the
Compensation Committee with the aim of maximizing shareholder
value, subject to circumstances and prevailing market conditions.
There are no provisions in the employment contracts of Executive
Board members or any other pre-determined arrangements that
require the payment of any type of extraordinary benefits, includ-
ing special severance awards, in the case of a change in control.
Former Executive Board members
Generally, former members of the Group’s most senior executive
body who no longer provide services to the Group are still eligible
to receive office infrastructure and secretarial support. These ser-
vices are based on existing resources and are not used on a regu-
lar basis. No additional fees or other forms of compensation were
paid to former members of the Executive Board who no longer
provided services to the Group during 2014.
Executive Board shareholdings and loans
Executive Board shareholdings
The table “Executive Board holdings and values of deferred share-
based awards by individual” discloses the shareholdings of the
Executive Board members, their immediate family and companies
in which they have a controlling interest, as well as the value of
the unvested share-based compensation awards held by Executive
Board members as of December 31, 2014.
The value of share-based compensation awards granted to
Executive Board members in prior years varies depending on the
Group share price and other factors influencing the fair value of
the award. The cumulative value of these unvested share-based
awards as of December 31, 2014 was on average 1% lower than
at the grant date value of the awards.
As of December 31, 2014, the outstanding cash-based
deferred compensation awards granted to certain Executive Board
members in prior years were the 2008 Partner Asset Facility, the
Plus Bond awards, the COF, CCA and the 2012 and 2013 LTI
awards. The cumulative value of such cash-based awards at their
grant dates was CHF 62 million compared to CHF 70 million as of
December 31, 2014.

220
Executive Board holdings and values of deferred share-based awards by individual

Number of
Number of

Value of
Current

Number of
unvested
owned shares
Number of
unvested
value of

owned
share
and unvested
unvested
awards at
unvested
end of
shares 1
awards
share awards
SISUs
grant (CHF)
awards (CHF)
December 31, 2014

Brady W. Dougan
641,334
326,139
967,473
–
8,074,202
8,179,566
James L. Amine
79,131
522,755
601,886
–
13,505,094
13,110,695
Gaël de Boissard
249,617
506,289
755,906
–
13,485,853
12,697,728
Romeo Cerutti
96,887
169,842
266,729
–
4,158,932
4,259,637
David R. Mathers
32,146
287,055
319,201
–
7,031,063
7,199,339
Hans-Ulrich Meister
318,484
321,385
639,869
–
7,948,267
8,060,336
Joachim Oechslin
–
64,060
64,060
–
1,595,094
1,606,625
Timothy P. O’Hara
–
664,016
664,016
–
17,154,283
16,653,521
Robert S. Shafir
617,053
386,794
1,003,847
–
9,439,287
9,700,794
–
158,139
158,139
–
3,857,930
3,966,126
Total
2,034,652
3,406,474
5,441,126
–
86,250,005
85,434,367
December 31, 2013

Brady W. Dougan
1,221,334
416,540
1,637,874
38,051
12,176,651
12,396,697
Gaël de Boissard
107,329
536,014
643,343
31,283
16,187,272
15,470,189
Romeo Cerutti
136,344
231,491
367,835
11,636
6,128,891
6,630,073
Tobias Guldimann
–
258,127
258,127
14,545
6,907,523
7,435,765
David R. Mathers
17,469
387,642
405,111
7,565
9,422,493
10,777,295
Hans-Ulrich Meister
189,478
417,112
606,590
23,273
11,248,886
12,009,299
Robert S. Shafir
617,053
532,112
1,149,165
31,160
14,344,561
15,360,428
–
216,875
216,875
7,191
5,461,314
6,110,280
Eric M. Varvel
–
286,098
286,098
27,735
9,597,358
8,558,226
Total
2,289,007
3,282,011
5,571,018
192,439
91,474,949
94,748,252
1
Includes shares that were initially granted as deferred compensation and have vested.
Executive Board loans (audited)
The majority of loans outstanding to Executive Board members are
mortgages or loans against securities. Such loans are made on the
same terms available to employees under the Group’s employee
benefit plans. Each Executive Board member may be granted indi-
vidual credit facilities or loans up to a maximum of CHF 20 million.
As of December 31, 2014, 2013 and 2012, outstanding loans to
Executive Board members amounted to CHF 5 million, CHF 10
million and CHF 8 million, respectively. The number of individuals
with outstanding loans at the beginning and the end of 2014 was
four and three, respectively, and the highest loan outstanding was
CHF 3 million to Joachim Oechslin.
All mortgage loans to Executive Board members are granted
either with variable or fixed interest rates over a certain period.
Typically, mortgages are granted for periods of up to ten years.
Interest rates applied are based on refinancing costs plus a mar-
gin, and interest rates and other terms are consistent with those
applicable to other employees. Loans against securities are
granted at interest rates and on terms applicable to such loans
granted to other employees. The same credit approval and risk
assessment procedures apply to Executive Board members as for
other employees. Unless otherwise noted, all loans to Executive
Board members were made in the ordinary course of business and
substantially on the same terms, including interest rates and col-
lateral, as those prevailing at the time for comparable transactions
with other persons and in consideration of the terms which apply
to all Group employees. These loans did not involve more than the
normal risk of collectability or present other unfavorable features.
u Refer to “Banking relationships and related party transactions” in Corporate Gov-
ernance for further information.
2015 targets, caps and performance criteria
The targets, caps and performance criteria to be applied in 2015
are based on the framework and approach used for the 2014 per-
formance year.
Similar to 2014, the performance criteria for 2015 encom-
pass the achievement of profitability and cost targets, as well as
progress towards the wind-down of the non-strategic operations
in light of the current operating environment. The progress of the
wind-down of the non-strategic operations will be measured based
on the achievement of reduction targets for risk-weighted assets
and leverage exposure and the attainment of pre-tax income tar-
gets. The Compensation Committee will also evaluate measures
relating to the execution of the Group’s strategy, development of
the businesses, delivery of major infrastructure projects and other
specific performance measures for each individual.

Compensation
The target levels of compensation and the specific levels for
each metric at which target levels of compensation are achieved
will be determined based on the 2015 financial plan of the Group
approved by the Board. The 2015 financial plan specifies perfor-
mance targets and metrics for floor, target and cap performance
levels. These factors will form the basis for the Compensation
Committee’s evaluation of 2015 performance against targets and
its proposal of 2015 Executive Board variable compensation. The
overall cap on total Executive Board incentive compensation for
2015 will be 2.5% of strategic Group net income. The individ-
ual variable compensation caps have been either maintained or
reduced as multiples of base salaries for 2015, with cash awards
ranging from 0.4 to 1.3 times salary, STI awards ranging from 0.6
to 1.9 times base salary and LTI awards ranging from 1.0 to 3.2
times base salary. The variable compensation caps as multiples
of base salary for the CEO remain unchanged compared to 2014.
For 2013 and 2014, the Compensation Committee had in its rec-
ommendations to the Board the explicit discretion to adjust incen-
tive awards resulting from the performance assessment against
financial and non-financial targets by a factor of plus or minus
20%. This discretion was not used in the context of the Executive
Board compensation for 2014 and the Compensation Committee
and the Board decided not to apply this explicit 20% discretion
going forward.
Executive Board compensation proposed for approval at
the 2015 AGM
Pursuant to the Compensation Ordinance and the AoA, the AGM
approves on an annual basis the compensation of the Executive
Board, based on a proposal by the Board. The Board may propose
that a maximum aggregate amount or maximum partial amounts of
compensation components for the Executive Board be approved
at the AGM in advance or retroactively for the defined period
described in the proposal. Accordingly, the Board will submit the
following proposals to the shareholders at the 2015 ordinary AGM:
Approval of the Executive Board aggregate variable
compensation for the 2014 financial year
The Board proposes that the shareholders approve an aggregate
amount of variable compensation to be awarded to members of the
Executive Board for the financial year 2014 of CHF 39.1 million.
The total amount is comprised of unrestricted cash and deferred
STI and LTI awards and reflects the performance achieved for
2014, as specified in the sections “Performance evaluation for
2014”, “2014 Performance against target”, “Executive Board
compensation for 2014”, and “2014 performance against targets
for CEO”. The proposed amount excludes any legally required
employer contributions to social security systems.
Approval of the Executive Board aggregate fixed compen-
sation for the period from the 2015 AGM to the 2016 AGM
The Board proposes to approve an aggregate amount of fixed
compensation to be paid to members of the Executive Board for
the period from the 2015 AGM to the 2016 AGM of no more than
CHF 32 million. The total amount of fixed compensation is com-
prised of base salaries, fixed allowances for members of the Exec-
utive Board qualifying as “PRA Code Staff”, dividend equivalents
(payable for unvested deferred share awards granted before 2014
only), and pension and similar benefits. The proposed amount
excludes any legally required employer contributions to social
security systems.
2015 compensation structure
The proposed annual base salary included in the AGM vote on
fixed compensation for the Executive Board will be CHF 3.0 million
for the CEO, CHF 2.0 million for the Executive Board members
based in Switzerland and USD 2.0 million for Executive Board
members based in the US and the UK. As of December 31, 2014,
two of the Executive Board members qualified as “PRA Code
Staff” for 2015 and will therefore receive a portion of the compen-
sation as a fixed allowance of CHF 5.8 million in total.
For the 2015 compensation structure, a slight amendment will
be made in comparison to the structure applicable for 2014 com-
pensation. The STI awards will be delivered in the form of CCA
instead of performance share awards, and the LTI awards will be
delivered in shares only, rather than a combination of shares and
CCA. Accordingly, the variable compensation for each Executive
Board member for 2015 will consist of:
p 20% as unrestricted cash payment, except for “PRA Code
Staff”, who will receive 10% in the form of unrestricted cash
and 10% in the form of blocked share awards;
p 30% as STI awards in the form of CCA with cliff vesting on the
third anniversary of the grant date; and
p 50% as LTI awards in the form of share awards with vesting
on the third, fourth and fifth anniversaries of the grant date,
subject to pre-defined performance vesting conditions.

222
Board of Directors compensation
Governance
The governance of the compensation to members of the Board
is set forth in the AoA and in the OGR. The annual compensation
paid to members of the Board, including the Chairman, is approved
by the Board, based on the recommendation of the Compensation
Committee for the 12-month period from the current AGM to the
following year’s AGM. For the first time at the AGM 2015, the total
aggregate amount of Board compensation is subject to approval
by the shareholders pursuant to the Compensation Ordinance. In
the case of the Chairman’s compensation and the additional fees
for the committee chairmen, the Board member concerned does
not participate in the recommendation involving his or her own
compensation.
Changes to the Board composition in 2014
At the 2014 AGM, Peter Brabeck-Letmathe and Walter B. Kielholz
stepped down from the Board and Severin Schwan and Sebastian
Thrun were elected as new members of the Board.
Basis of determining compensation for the Board
Board members are compensated on the basis of fees, which
reflect the respective Board member’s role, time commitment and
scope of responsibility on the Board. The fee amounts are set at
levels to attract and retain highly qualified and experienced indi-
viduals and take into consideration levels at comparable leading
Swiss companies. During 2014, the Board adopted a revised fee
structure for members of the Board. Key changes include the har-
monization of the base board fees, a more granular fee structure
for committee participation and fixed chair fees for the Chairman
and the three committee chairmen, which reflects the greater
responsibility and considerable time dedicated to fulfilling these
leadership roles. Except for the full-time Chairman, all members
of the Board receive an annual base board fee of CHF 250,000.
Board members also receive annual committee fees for each com-
mittee membership as shown in the table below.
Fees paid to Board members are in the form of cash and
Group shares, which are blocked for a period of four years. This
ensures that the interests of Board members are closely aligned to
the interests of shareholders.
Membership fees
Membership
Annual fee (in CHF)
Board of Directors – base fee
250,000
Audit Committee
150,000
Chairman’s and Governance Committee
100,000
100,000
Risk Committee
100,000
Compensation of the Chairman
The Chairman is paid an annual base board fee in cash (12
monthly payments) plus a chair fee in Group shares. For 2014,
the base board fee of the Chairman was CHF 2.5 million and the
chair fee was CHF 1.0 million. The total compensation paid to the
Chairman reflects his full-time status and active role in shaping the
Group’s strategy, governing the Group’s affairs, engaging with the
CEO and senior management and with stakeholders. The Chair-
man coordinates the Board’s activities, works with the committee
chairmen to coordinate the tasks of the committees and ensures
that Board members are provided with sufficient information to
perform their duties. The Chairman drives the Board agenda on
key topics such as the strategic development of the Group, suc-
cession planning and the structure and organization of the Group.
The Chairman also steers the agenda on compensation and com-
pensation structure, including the performance evaluation and
compensation of the CEO and the Executive Board. He chairs the
Board, the Chairman’s and Governance Committee and the share-
holder meetings and takes an active role in representing the Group
to regulators and supervisors, key shareholders, investors, and
other stakeholders. Moreover, he is a member of several industry
associations on behalf of the Group. He is a member of the board
of directors of the Institute of International Finance and chairs the
Institute’s Special Committee on Effective Regulation. Until the
end of 2014, the Chairman was also a member of the group of
experts on the further development of the financial market strategy
appointed by the Swiss Federal Council.
Compensation of the Lead Independent Director and the
Vice-Chairs
Noreen Doyle, as Lead Independent Director and Vice-Chair, and
Richard E. Thornburgh as Vice-Chair do not receive additional
compensation for these roles. Both individuals are members of the
Chairman’s and Governance Committee, however, for which they
receive an annual committee fee of CHF 100,000.

Compensation
Compensation of the committee chairmen
Jean Lanier, Richard E. Thornburgh and John Tiner, each in the
role of committee chairman of the Compensation, Risk and Audit
Committees, respectively, receive chair fees, reflecting the greater
responsibility and time commitment required to perform the role
of a committee chairman, which is considered to be a significant
part-time role. For 2014, the chair fee was CHF 200,000 for the
chairman of the Compensation Committee and CHF 800,000
each for the chairmen of the Risk and Audit Committees. These
fees are fixed in advance and are not linked to the Group’s financial
performance. In addition to the greater time commitment required
to prepare and lead the committee work, the chair fees consider
the engagement of the three committee chairmen throughout the
year with global regulators, shareholders, the business divisions
and Shared Services functions and other stakeholders. Regula-
tory developments in the banking industry in recent years have
put increasing demands on the Risk and Audit Committee chair-
men, in particular, increasing the frequency of interaction with the
Group’s main regulators on internal control, risk, capital and other
matters under the supervision of these committees. Similarly, the
greater focus of shareholders and regulators on compensation has
resulted in an increased number of engagements between the
Compensation Committee chairman and large shareholders and
shareholder groups, as well as with regulators. The Audit Com-
mittee chair fee also considers the greater number of meetings
required of the Audit Committee for the review and approval of
the quarterly financial results and related filings (e.g. 18 meetings
and calls held during 2014) and the Audit Committee chairman’s
supervisory role over the Internal Audit function. The Head of Inter-
nal Audit has a direct reporting line to the Audit Committee chair-
man and is required to deliver regular reports to the Audit Com-
mittee. The chairman of the Risk Committee is in regular contact
with the Group chief risk officer and the senior management in the
risk management function. Moreover, the Risk Committee chair
fee also considers the additional role Mr. Thornburgh assumes as
board member and Risk Committee chairman of the Group’s UK
subsidiaries Credit Suisse International and Credit Suisse Securi-
ties (Europe) Limited. Whereas other non-executive directors of
these UK entities receive directors fees for their board and com-
mittee roles, Mr. Thornburgh does not receive separate fees for
this additional role.
u Refer to “Members of the Board and Board committees” in Corporate Gover-
nance – Board of Directors for further information.
2014 adjusted compensation for the Board
In proposing the 2014 compensation for the Board, the Compen-
sation Committee considered the final settlement regarding all out-
standing US cross-border matters. The Compensation Committee
agreed that this event should have consequences for the compen-
sation of the Board, in order to reflect the responsibility it bears in
safeguarding the long term reputation and professional integrity
of the Group’s businesses globally, regardless of which individu-
als serve as directors at any given time. The Compensation Com-
mittee therefore recommended reductions to the compensation
awarded to the Board. The Board approved a 50% reduction in
their share-based compensation for 2014, which is approximately
25% of total Board compensation. For the Chairman, the 50%
reduction was applied against the chair fee, which was reduced to
CHF 1 million.
u Refer to “Compensation decisions” in Executive Board compensation for more
information.
Former members of the Board
Two former members of the Board are eligible to receive office
infrastructure and secretarial support. These services are based
on existing resources and are not used on a regular basis. No
additional fees, severance payments or other forms of compensa-
tion were paid to former members of the Board or related parties
during 2014.

224
Board compensation for 2014 (audited)

Base

Total

% of total
Awarded
% of total
Number

board
Committee
Chair
Voluntary
compen-
Awarded
compen-
in Group
compen-
of Group
in
fee
fee
fees
adjustment 1
sation 2
in cash
sation
shares
sation
shares 3
2014 (CHF)

Urs Rohner,

Chairman 4
2,500,000
–
2,000,000
(1,000,000)
3,629,856
2,629,856
72%
1,000,000
28%
49,481
Jassim Bin Hamad J.J. Al Thani 5
250,000
–
–
(62,500)
187,500
125,000
67%
62,500
33%
2,510
Iris Bohnet 5, 6
250,000
100,000
–
(87,500)
267,500
180,000
67%
87,500
33%
3,513
Noreen Doyle 7
250,000
250,000
280,000
(195,000)
585,000
460,000
79%
125,000
21%
5,019
Jean-Daniel Gerber 5
250,000
150,000
–
(100,000)
300,000
200,000
67%
100,000
33%
4,015
Andreas N. Koopmann 5
250,000
200,000
–
(112,500)
337,500
225,000
67%
112,500
33%
4,517
Jean Lanier, Chairman of the

Compensation Committee 8
250,000
350,000
200,000
(200,000)
600,000
400,000
67%
200,000
33%
7,239
Kai S. Nargolwala 5
250,000
200,000
–
(112,500)
337,500
225,000
67%
112,500
33%
4,517
Anton van Rossum 5
250,000
100,000
–
(87,500)
262,500
175,000
67%
87,500
33%
3,513
Severin Schwan 5
250,000
100,000
–
(87,500)
262,500
175,000
67%
87,500
33%
3,513
Richard E. Thornburgh,

Chairman of the Risk Committee 8
250,000
350,000
800,000
(350,000)
1,050,000
700,000
67%
350,000
33%
14,661
Sebastian Thrun 5
250,000
100,000
–
(87,500)
262,500
175,000
67%
87,500
33%
3,513
John Tiner, Chairman

of the Audit Committee 8
250,000
350,000
800,000
(350,000)
1,050,000
700,000
67%
350,000
33%
14,534
Total
5,500,000
2,250,000
4,080,000
(2,832,500)
9,132,356
6,369,856
70%
2,762,500
30%
120,545
1
The voluntary adjustment reflects a 50% reduction in the share portion of each Board member’s fees, which was decided by the Board on August 22, 2014, following the final settlement
of all US cross-border matters in May 2014. Board fees would normally be awarded as 50% cash and 50% shares, with the exception of the Chairman and Noreen Doyle.
2
For the total compensation awarded to members of the Board, the Group made payments of CHF 0.6 million in 2014 and CHF 0.7 million in 2013 to cover the mandatory employer social
security contributions as required under the social security laws applicable to the individual Board members based on their domicile and employment status. These contributions do not form
part of the Board members’ compensation.
3
The value of the Group shares is included in total compensation. Group shares are subject to a four-year blocking period.
4
The chair fee of the Chairman is set at CHF 2.0 million to be awarded as 100% Group shares. For 2014, after applying the voluntary adjustment, the Chairman was paid a chair fee of CHF
1.0 million in Group shares. The applicable Group share price for the chair fee was CHF 20.21. The total compensation of the Chairman includes benefits received in 2014 of CHF 129,856,
which included pension benefits, lump sum expenses and child and health care allowances.
5
Except for the Chairman, members of the Board are awarded an annual base board fee and a committee fee for their respective committee membership in advance for the period from one
AGM to the other, i.e., from May 9, 2014 to April 23, 2015. For 2014, after applying the voluntary adjustment, these total combined fees were paid in cash (67%) and Group shares (33%).
The applicable Group share price was CHF 24.91.
6
The total compensation of Iris Bohnet includes a payment of CHF 5,000 in 2014 for a speaking engagement at a Credit Suisse sponsored event.
7
In addition to the base board and committee fees, which were awarded as 50% cash and 50% Group shares, the chair fee of GBP 200,000 (CHF 280,000) was awarded in cash to Nor-
een Doyle as a non-executive director and chair of two of the Group’s UK subsidiaries, Credit Suisse International and Credit Suisse Securities (Europe) Limited. For 2014, after applying
the voluntary adjustment, there was a 50% reduction of the share portion of her Group board fees and a 25% reduction of her UK board chair fee in cash. Noreen Doyle received a chair
fee of GBP 150,000 (CHF 210,000).
8
In addition to the base board and committee fees, the three committee chairmen are each awarded a chair fee. The chair fee is awarded as 50% cash and 50% Group shares. For 2014,
after applying the voluntary adjustment, the committee chairmen are paid their respective chair fees in cash (67%) and Group shares (33%). The applicable Group share price for the chair
fees was CHF 20.21.

Compensation
Board compensation for 2013

Other

Base

compen-
Total

% of total
Awarded
% of total
Number

board
Committee
Additional
sation
compen-
Awarded
compen-
in Group
compen-
of Group
in
fee
fee
fees 1
categories 2
sation
in cash
sation
shares
sation
shares 3
2013 (CHF)

Urs Rohner,

Chairman 4
2,500,000
–
2,250,000
153,260
4,903,260
3,778,260
77%
1,125,000
23%
39,090
Peter Brabeck-Letmathe,

Vice-Chairman 5
400,000
–
–
–
400,000
200,000
50%
200,000
50%
7,455
Jassim Bin Hamad J.J. Al Thani 5
250,000
–
–
–
250,000
125,000
50%
125,000
50%
4,659
Iris Bohnet 5
250,000
100,000
–
–
350,000
175,000
50%
175,000
50%
6,523
Noreen Doyle 5
250,000
100,000
294,000
–
644,000
469,000
73%
175,000
27%
6,523
Jean-Daniel Gerber 5
250,000
150,000
–
–
400,000
200,000
50%
200,000
50%
7,455
Walter B. Kielholz 5
250,000
100,000
–
–
350,000
175,000
50%
175,000
50%
6,523
Andreas N. Koopmann 5
250,000
200,000
–
–
450,000
225,000
50%
225,000
50%
8,387
Jean Lanier, Chairman of the

Compensation Committee 4
400,000
–
400,000
–
800,000
600,000
75%
200,000
25%
6,950
Kai S. Nargolwala 5
250,000
100,000
–
–
350,000
175,000
50%
175,000
50%
6,523
Anton van Rossum 5
250,000
100,000
–
–
350,000
175,000
50%
175,000
50%
6,523
Richard E. Thornburgh,

Chairman of the Risk Committee 4
400,000
–
1,000,000
–
1,400,000
900,000
64%
500,000
36%
17,374
John Tiner, Chairman

of the Audit Committee 4
400,000
–
1,000,000
–
1,400,000
900,000
64%
500,000
36%
17,374
Total
6,100,000
850,000
4,944,000
153,260
12,047,260
8,097,260
67%
3,950,000
33%
141,359
1
Includes the additional fees for the full-time Chairman and the three committee chairmen as well as the additional fees of CHF 294,000 (GBP 200,000) paid to Noreen Doyle in 2013
as a non-executive director and chair of the boards of two of the Group’s UK subsidiaries, Credit Suisse International and Credit Suisse Securities (Europe) Limited. The additional fees of
CHF 400,000 were awarded to Jean Lanier as Chairman of the Compensation Committee in 2013, a role to which he was appointed as of the 2013 AGM on April 26, 2013.
2
Other compensation for the Chairman included pension benefits, lump sum expenses and child and health care allowances.
3
The value of the Group shares is included in total compensation. Group shares are subject to a four-year blocking period.
4
The Chairman and the three committee chairmen received an annual base board fee paid in cash. They also received additional fees paid in cash and/or shares as determined by the Board
in the course of the regular compensation process. The additional fees paid to the three committee chairmen covered their regular memberships in other committees that they do not chair.
The additional fees awarded to these four individuals for 2013 were paid in Group shares (50%) and cash (50%). The applicable Group share price was CHF 28.78.
5
Except for the Chairman and the three committee chairmen, members of the Board were paid an annual base board fee and a committee fee for their respective committee membership in
advance for the period from one AGM to the other, i.e., from April 26, 2013 to May 9, 2014. The annual committee fees are CHF 150,000 for the Audit Committee and CHF 100,000 for
each of the Risk and Compensation Committees. For 2013, these total combined fees were paid in Group shares (50%) and cash (50%). The applicable Group share price as of the 2013
AGM was CHF 26.83.
Board compensation proposed for approval at the 2015 AGM
Pursuant to the Compensation Ordinance and the Group’s Articles
of Association, the AGM approves on an annual basis the com-
pensation of the Board in advance as a maximum amount for the
period until the next ordinary AGM. Accordingly, the Board will
submit the following proposal to the shareholders at the 2015 ordi-
nary AGM:
Approval of the compensation of the Board for the period
from 2015 AGM to 2016 AGM
The Board proposes to approve an aggregate amount of com-
pensation to be paid to members of the Board for the 12 month
period from the 2015 AGM to the 2016 AGM of no more than
CHF 12 million. The total amount is comprised of base board fees,
committee fees, chair fees and (if applicable) pension benefits and
other benefits as specified in the section “Board of Directors Com-
pensation”. The proposed amount excludes any legally required
employer contributions to social security systems.

226
Board shareholdings and loans
Board shareholdings
The table below discloses the shareholdings of the Board mem-
bers, their immediate family and companies in which they have
a controlling interest. As of December 31, 2014, there were no
Board members with outstanding options.
Board shareholdings by individual
in
2014
2013
December 31 (shares) 1

Urs Rohner
229,492
230,402
19,763
17,918
Iris Bohnet
18,243
15,464
Noreen Doyle
52,984
49,014
Jean-Daniel Gerber
21,550
17,701
Andreas N. Koopmann
46,859
42,569
Jean Lanier
56,665
44,951
Kai S. Nargolwala
176,974
114,666
Anton van Rossum
59,081
56,464
Severin Schwan
25,155
–
184,668
212,530
Sebastian Thrun
2,779
–
John Tiner
70,482
48,471
Total
964,695
850,150 2
1
Includes Group shares that are subject to a blocking period of up to four years; includes
shareholdings of immediate family members.
2
Excludes 144,186 shares and 316,675 shares held by Peter Brabeck-Letmathe and Wal-
ter B. Kielholz, respectively, who stepped down from the Board as of May 9, 2014.
Board loans
The majority of loans outstanding to members of the Board are
mortgages or loans against securities. Such loans are made to
Board members on the same terms available to third-party clients.
Each member of the Board may be granted individual credit facili-
ties or loans up to a maximum of CHF 20 million at market con-
ditions. As of December 31, 2014, 2013 and 2012, outstanding
loans to Board members amounted to CHF 16 million, CHF 55
million and CHF 41 million, respectively.
Board members with loans do not benefit from employee
conditions, but are subject to conditions applied to clients with
a comparable credit standing. Board members who were previ-
ously employees of the Group may still have outstanding loans,
which were provided at the time that employee conditions applied
to them. Unless otherwise noted, all loans to Board members are
made in the ordinary course of business and substantially on the
same terms, including interest rates and collateral, as those pre-
vailing at the time for comparable transactions with other persons.
Such loans do not involve more than the normal risk of collectability
or present other unfavorable features. In addition to the loans listed
below, the Group or any of its banking subsidiaries may enter into
financing and other banking agreements with companies in which
current Board members have a significant influence as defined by
the SEC. Examples include holding executive and/or board level
roles in these companies. Unless otherwise noted, loans extended
by the Group to such companies are also made in the ordinary
course of business and at prevailing market conditions. As of
December 31, 2014, 2013 and 2012, there was no loan exposure
to such related party companies that was not made in the ordinary
course of business and at prevailing market conditions.
u Refer to “Banking relationships and related party transactions” in Corporate
Governance for further information.
Board loans by individual (audited for 2014)
in
2014
2013
December 31 (CHF)

Urs Rohner
5,097,475
4,968,270
Andreas N. Koopmann
4,885,919
4,933,650
6,223,479
222,756
Total 1
16,206,873
10,124,676 2
1
Includes loans to immediate family members.
2
Excludes loans of CHF 40,631,650 and CHF 4,000,000 held by Peter Brabeck-Letmathe
and Walter B. Kielholz, respectively, who stepped down from the Board as of May 9, 2014.

Compensation
Discontinued compensation plans
The Group has discontinued compensation instruments with lever-
age components. A summary of the principal forms of awards
granted in prior years, which have since been discontinued but are
still outstanding, is shown in the following overview. For certain
plans, the Group retains the right to settle the instruments in cash
or in shares at its discretion.
Principal outstanding deferred variable compensation plans
p Basis: cash-based;
p Vesting start: January 2013;
p Vesting end: January 2016;
p Applied to: performance in 2012, which included managing
directors in Investment Banking;
p General award conditions: vesting ratably over three years
and other restrictive covenants and provisions. Paid in the first
quarter of 2013;
p Other award conditions or restrictions: subject to repayment in
part or in full if a performance-based malus event occurs, such
as voluntary termination or termination for cause during the
vesting period;
p Program objective/rationale: promoting retention of senior
management.
Plus Bond awards
p Vesting start: 2012/January 2013;
p Vesting end: 2012/January 2016;
p Applied to: performance in 2012 for managing directors and
directors in Investment Banking. Other managing directors
and directors were allowed to reallocate a portion of the share
awards into Plus Bond awards. Mandatory Plus Bond awards
for managing directors and directors in the Investment Bank-
ing division were fully vested on grant, subject to cancellation
in the event of a termination with cause or where settlement
conditions are violated. Vesting in 2016 for employees who
elected to reallocate a portion of their share awards to Plus
Bond awards;
p General award conditions: awards are linked to the future per-
formance of a portfolio or unrated and sub-investment grade
asset-backed securities that are held in inventory by various
trading desks in Investment Banking;
p Other award conditions or restrictions: Plus Bond award
holders will receive semi-annual cash payments at the rate
of q LIBOR plus 7.875% per annum. Holders of Plus Bond
awards are subject to a non-compete/non-solicit provision;
p Program objective/rationale: providing employees with a
fixed income strategy while transferring risk from the Group
to employees thereby contributing to a reduction of q risk-
weighted assets.
Capital Opportunity Facility (COF)
p Vesting start: 94% vested at the time of conversion in Febru-
ary 2014;
p Vesting end: February 2016;
p Applied to: performance in 2011, as this was derived from the
conversion of the 2011 Partner Asset Facility (PAF2);
p General award conditions: The COF is a seven-year facility
that is linked to the performance of a portfolio of risk-transfer
and capital mitigation transactions to be entered into with the
Group chosen by the COF management team. The value of the
COF awards will be reduced if there are losses from the COF
portfolio, up to the full amount of the award. COF awards were
obtained in exchange for PAF2 awards. PAF2 awards were
linked to a portfolio of the Group’s credit exposures, providing
risk offset and capital relief up until December 2013. Due to
regulatory changes, the capital relief was no longer available
after December 31, 2013. As a result, the Group restructured
the awards in March 2014, requiring PAF2 holders to reallocate
the exposure of their awards from the pool of counterparty credit
risks in the original PAF2 structure to either COF or CCAs, or a
combination thereof;
p Other award conditions or restrictions: COF holders will receive
semi-annual US dollar cash distributions of 6.5% per annum
until settlement in cash in 2021, and such semi-annual distribu-
tions will reduce the cash settlement amount payable in 2021;
p Program objective/rationale: providing employees with semi-
annual fixed income distributions and a potential return on the
reference assets at maturity while transferring risk from the
Group to employees thereby contributing to risk reduction and
capital efficiency.
Contingent Capital Awards (CCA) derived from PAF2
p Vesting start: 94% vested at the time of conversion in Febru-
ary 2014;
p Vesting end: February 2016;
p Applied to: performance in 2011, as this was derived from the
conversion of the 2011 Partner Asset Facility (PAF2);
p General award conditions: PAF2 awards participants electing
to receive CCA in substitute receive similar terms to the instru-
ments granted as part of the 2013 and 2014 compensation
awards. The principal differences between the two forms of
CCA are that these CCA are expected to settle approximately
one year earlier and provide semi-annual cash payments of
interest equivalents at slightly lower rates (4.51% per annum
over the six-month Swiss franc LIBOR or 5.07% per annum
over the six-month US dollar LIBOR).

228
p Other award conditions or restrictions: Settlement is expected
to occur in February 2016, subject to regulatory approvals. At
settlement, employees will receive either a contingent capital
instrument or a cash payment based on the fair value of the
CCA. The fair value will be determined by the Group. CCA have
loss-absorbing features such that prior to settlement, the princi-
pal amount of the CCA would be written-down to zero and can-
celed if any of the following trigger events were to occur: CET1
falls below 7%; or FINMA determine cancellation of the award is
necessary;
p Program objective/rationale: Utilized to align compensation with
the maintenance of strong capital ratios, provide additional
tier 1 capital, and reduce dilution to existing share capital that
would otherwise be incurred with the issuance of share-based
deferred compensation awards.
u Refer to “Contingent Capital Awards (CCA)” in Group compensation for fur-
ther information.
Adjustable Performance Plan awards
p Basis: cash and share-based;
p Vesting start: January 2011;
p Vesting end: January 2014;
p Applied to: performance in 2010, which included the Executive
Board, managing directors and directors;
p General award conditions: Adjustable Performance Plan
awards link awards to future performance through positive and
negative adjustments. Vesting ratably over a four-year period;
p Other award conditions or restrictions: for revenue-generat-
ing employees in the divisions, Adjustable Performance Plan
awards are linked to the financial performance of the specific
business areas in which the employees work and the Group
reported ROE. For employees in Shared Services and other
support functions and all Executive Board members, the
awards are linked to the Group’s adjusted profit or loss and the
Group reported ROE;
p Program objective/rationale: promoting retention of Executive
Board members, managing directors and directors.
2008 Partner Asset Facility (PAF)
p Vesting start: 2008, 66.7% vested upon grant;
p Vesting end: 33.3% vested in March 2009;
p Applied to: performance in 2008, which included all managing
directors and directors in Investment Banking;
p General award conditions: the contractual term of a PAF award
is eight years. PAF awards are indexed to, and represent a
first-loss interest in, a specified pool of illiquid assets (Asset
Pool) that originated in Investment Banking. The notional value
of the Asset Pool was based on the fair market value of the
assets within the Asset Pool as of December 31, 2008, and
those assets cannot be substituted throughout the contractual
term of the award or until liquidated;
p Other award conditions or restrictions: PAF holders will receive
a semi-annual cash interest payment of the LIBOR plus 250
basis points applied to the notional value of the PAF award
granted throughout the contractual term of the award. They will
participate in the potential gains on the Asset Pool if the assets
within the pool are liquidated at prices above the initial fair mar-
ket value. If the assets within the Asset Pool are liquidated at
prices below the initial fair market value, the PAF holders will
bear the first loss on the Asset Pool;
p Program objective/rationale: designed to incentivize senior
managers in Investment Banking to effectively manage assets
which were a direct result of risk taking in Investment Banking
during this period. As a result of the PAF program, a signifi-
cant portion of risk positions associated with the Asset Pool
has been transferred to the employees and removed from the
Group’s risk-weighted assets, resulting in a reduction in capital
usage.
u Refer to “Note 28 – Employee deferred compensation” in V – Consolidated
financial statements – Credit Suisse Group for more information.

229
Consolidated
financial statements
– Credit Suisse Group
231 Report of the Statutory Auditor
233 Consolidated financial statements
240 Notes to the consolidated
financial statements
(see the following page for a detailed list)
375 Controls and procedures
376 Report of the Independent
Registered Public Accounting Firm
V

Consolidated financial statements
233 Consolidated statements of operations
233 Consolidated statements of comprehensive
income
234 Consolidated balance sheets
236 Consolidated statements of changes in equity
238 Consolidated statements of cash flows
Notes to the consolidated financial statements
240 1 Summary of significant accounting policies
248 2 Recently issued accounting standards
250 3 Business developments, significant
shareholders and subsequent events
251 4 Discontinued operations
253 5 Segment information
255 6 Net interest income
255 7 Commissions and fees
256 8 Trading revenues
257 9 Other revenues
257 10 Provision for credit losses
257 11 Compensation and benefits
257 12 General and administrative expenses
258 13 Earnings per share
259 14 Securities borrowed, lent and subject to
repurchase agreements
259 15 Trading assets and liabilities
260 16 Investment securities
261 17 Other investments
262 18 Loans, allowance for loan losses and credit
quality
270 19 Premises and equipment
271 20 Goodwill
272 21 Other intangible assets
273 22 Other assets and other liabilities
274 23 Deposits
274 24 Long-term debt
276 25 Accumulated other comprehensive income
and additional share information
277 26 Offsetting of financial assets and financial
liabilities
281 27 Tax
286 28 Employee deferred compensation
292 29 Related parties
294 30 Pension and other post-retirement benefits
303 31 Derivatives and hedging activities
309 32 Guarantees and commitments
314 33 Transfers of financial assets and variable
interest entities
322 34 Financial instruments
349 35 Assets pledged and collateral
350 36 Capital adequacy
351 37 Assets under management
352 38 Litigation
360 39 Significant subsidiaries and equity method
investments
362 40 Subsidiary guarantee information
371 41 Credit Suisse Group parent company
371 42 Significant valuation and income
recognition differences between US GAAP
and Swiss GAAP banking law (true and fair
view)
374 43 Risk assessment

231Consolidated financial statements – Credit Suisse Group


Consolidated financial statements
Consolidated statements of operations

Reference

to notes
in

2014
2013
2012
Consolidated statements of operations (CHF million)

Interest and dividend income
6
19,061
19,556
22,090
Interest expense
6
(10,027)
(11,441)
(14,947)
Net interest income
6
9,034
8,115
7,143
7
13,051
13,226
12,724
Trading revenues
8
2,026
2,739
1,196
Other revenues
9
2,131
1,776
2,548
Net revenues

26,242
25,856
23,611
10
186
167
170
11
11,334
11,256
12,303
12
9,534
8,599
7,246
Commission expenses

1,561
1,738
1,702

11,095
10,337
8,948

22,429
21,593
21,251

3,627
4,096
2,190
Income tax expense
27
1,405
1,276
465

2,222
2,820
1,725
Income/(loss) from discontinued operations, net of tax
4
102
145
(40)
Net income

2,324
2,965
1,685

449
639
336

1,875
2,326
1,349

1,773
2,181
1,389
   of which from discontinued operations

102
145
(40)
Basic earnings per share (CHF)

Basic earnings per share from continuing operations
13
1.02
1.14
0.82
Basic earnings/(loss) per share from discontinued operations
13
0.06
0.08
(0.03)
Basic earnings per share
13
1.08
1.22
0.79
Diluted earnings per share (CHF)

Diluted earnings per share from continuing operations
13
1.01
1.14
0.82
Diluted earnings/(loss) per share from discontinued operations
13
0.06
0.08
(0.03)
Diluted earnings per share
13
1.07
1.22
0.79
Consolidated statements of comprehensive income
in
2014
2013
2012
Comprehensive income (CHF million)

Net income
2,324
2,965
1,685
   Gains/(losses) on cash flow hedges
(20)
18
37
   Foreign currency translation
2,287
(1,021)
(1,114)
   Unrealized gains/(losses) on securities
12
(32)
(15)
   Actuarial gains/(losses)
(1,253)
1,044
(50)
   Net prior service credit/(cost)
(63)
(95)
248
Other comprehensive income/(loss), net of tax
963
(86)
(894)
Comprehensive income
3,287
2,879
791
Comprehensive income attributable to noncontrolling interests
540
525
211
Comprehensive income attributable to shareholders
2,747
2,354
580
The accompanying notes to the consolidated financial statements are an integral part of these statements.

234
Consolidated balance sheets

Reference

to notes
end of

2014
2013


79,349
68,692

304
527
   of which reported from consolidated VIEs

1,493
952
Interest-bearing deposits with banks

1,244
1,515

0
311

14
163,208
160,022

104,283
96,587

660
1,959
Securities received as collateral, at fair value

26,854
22,800
   of which encumbered

25,220
17,964
Trading assets, at fair value
15
241,131
229,413
   of which encumbered

77,583
72,976

4,261
3,610
Investment securities
16
2,791
2,987

2,791
2,987

0
100
Other investments
17
8,613
10,329

5,654
7,596

2,105
1,983
Net loans
18
272,551
247,054

22,913
19,457
   of which encumbered

192
638

245
4,207
   allowance for loan losses

(758)
(869)
Premises and equipment
19
4,641
5,091

452
513
Goodwill
20
8,644
7,999
21
249
210

70
42

41,629
52,045
Other assets
22
70,558
63,065

32,320
31,518
   of which encumbered

250
722

16,134
14,330
Assets of discontinued operations held-for-sale

0
1,584
Total assets

921,462
872,806


Consolidated balance sheets (continued)

Reference

to notes
end of

2014
2013
Liabilities and equity (CHF million)

Due to banks
23
26,009
23,108

823
1,450
Customer deposits
23
369,058
333,089

3,261
3,252

3
265

14
70,119
94,032

54,732
76,104
Obligation to return securities received as collateral, at fair value

26,854
22,800
Trading liabilities, at fair value
15
72,655
76,635

35
93

25,921
20,193

3,861
6,053

9,384
4,286
Long-term debt
24
177,898
130,042

81,166
63,369

13,452
12,992
Brokerage payables

56,977
73,154
Other liabilities
22
50,970
51,447

16,938
21,973

1,728
710
Liabilities of discontinued operations held-for-sale

0
1,140
Total liabilities

876,461
825,640
Common shares

64
64
Additional paid-in capital

27,007
27,853
Retained earnings

32,083
30,261
Treasury shares, at cost

(192)
(139)
Accumulated other comprehensive income/(loss)
25
(15,003)
(15,875)

43,959
42,164
Noncontrolling interests

1,042
5,002
Total equity

45,001
47,166

Total liabilities and equity

921,462
872,806

Reference

to notes
end of

2014
2013
Additional share information

Par value (CHF)

0.04
0.04
Authorized shares 1

2,299,616,660
2,269,616,660
Common shares issued
25
1,607,168,947
1,596,119,349
Treasury shares
25
(7,666,658)
(5,183,154)
Shares outstanding
25
1,599,502,289
1,590,936,195
1
Includes issued shares and unissued shares (conditional, conversion and authorized capital).

236
Consolidated statements of changes in equity

Attributable to shareholders

Accumu-

lated other
Total

Additional

Treasury
compre-
share-
Non-

Common
paid-in
Retained
shares,
hensive
holders’
controlling
Total

shares
capital
earnings
at cost
income
equity
interests
equity
2014 (CHF million)

64
27,853
30,261
(139)
(15,875)
42,164
5,002
47,166
Purchase of subsidiary shares from non-

controlling interests, not changing ownership 1, 2
–
238
–
–
–
238
(2,143)
(1,905)
Sale of subsidiary shares to noncontrolling

interests, not changing ownership 2
–
–
–
–
–
–
39
39
Net income/(loss)
–
–
1,875
–
–
1,875
449
2,324
Total other comprehensive income/(loss), net of tax
–
–
–
–
872
872
91
963
Issuance of common shares
–
297
–
–
–
297
–
297
Sale of treasury shares
–
(15)
–
9,409
–
9,394
–
9,394
Repurchase of treasury shares
–
–
–
(10,197)
–
(10,197)
–
(10,197)
Share-based compensation, net of tax
–
(105) 3
–
735
–
630
–
630
Financial instruments indexed to own shares 4
–
(80)
–
–
–
(80)
–
(80)
Dividends paid
–
(1,177) 5
(53)
–
–
(1,230)
(22)
(1,252)
Changes in redeemable noncontrolling interests
–
2
–
–
–
2
–
2
Changes in scope of consolidation, net
–
–
–
–
–
–
(2,378)
(2,378)
Other
–
(6)
–
–
–
(6)
4
(2)
64
27,007
32,083
(192)
(15,003)
43,959
1,042
45,001
2013 (CHF million)

53
23,636
28,171
(459)
(15,903)
35,498
6,786
42,284

controlling interests, changing ownership
–
–
–
–
–
–
(22)
(22)

controlling interests, not changing ownership
–
216
–
–
–
216
(2,467)
(2,251)

interests, not changing ownership
–
–
–
–
–
–
438
438
Net income/(loss)
–
–
2,326
–
–
2,326
651
2,977
–
–
–
–
28
28
(114)
(86)
11
4,222
–
–
–
4,233
–
4,233
–
(50)
–
10,360
–
10,310
–
10,310
–
–
–
(10,202)
–
(10,202)
–
(10,202)
–
213
–
162
–
375
–
375
Financial instruments indexed to own shares
–
(93)
–
–
–
(93)
–
(93)
Dividends paid
–
(269)
(236)
–
–
(505)
(59)
(564)
–
(13)
–
–
–
(13)
–
(13)
Changes in scope of consolidation, net
–
–
–
–
–
–
(211)
(211)
Other
–
(9)
–
–
–
(9)
–
(9)
64
27,853
30,261
(139)
(15,875)
42,164
5,002
47,166
1
Distributions to owners in funds include the return of original capital invested and any related dividends.
2
Transactions with and without ownership changes related to fund activity are all displayed under “not changing ownership”.
3
Includes a net tax charge of CHF (70) million from the excess recognized compensation expense over fair value of shares delivered.
4
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 desig-
nated as equity instruments and, as such, were initially recognized in shareholders’ equity at their fair values and not subsequently remeasured.
5
Paid out of reserves from capital contributions.


Consolidated statements of changes in equity (continued)

Attributable to shareholders

Accumu-

lated other Total

Additional Treasury compre- share- Non-

Common paid-in Retained shares, hensive holders’ controlling Total

shares capital earnings at cost income equity interests equity
2012 (CHF million)
49
21,796
27,053
(90)
(15,134)
33,674
7,411
41,085

controlling interests, changing ownership
–
44
–
–
–
44
(4)
40

controlling interests, not changing ownership
–
–
–
–
–
–
(809)
(809)

interests, not changing ownership
–
–
–
–
–
–
116
116
Net income/(loss)
–
–
1,349
–
–
1,349
347
1,696
–
–
–
–
(769)
(769)
(125)
(894)
4
1,926
–
–
–
1,930
–
1,930
–
(3)
–
8,358
–
8,355
–
8,355
–
–
–
(8,859)
–
(8,859)
–
(8,859)
–
932
–
132
–
1,064
–
1,064
Financial instruments indexed to own shares
–
(9)
–
–
–
(9)
–
(9)
Dividends paid
–
(1,011)
(231)
–
–
(1,242)
(54)
(1,296)
–
(7)
–
–
–
(7)
–
(7)
Changes in scope of consolidation
–
–
–
–
–
–
(96)
(96)
Other
–
(32)
–
–
–
(32)
–
(32)
53
23,636
28,171
(459)
(15,903)
35,498
6,786
42,284

238
Consolidated statements of cash flows
in
2014
2013
2012
Operating activities of continuing operations (CHF million)

Net income
2,324
2,965
1,685
(Income)/loss from discontinued operations, net of tax
(102)
(145)
40
2,222
2,820
1,725
Adjustments to reconcile net income/(loss) to net cash provided by/(used in)

operating activities of continuing operations (CHF million)

Impairment, depreciation and amortization
1,285
1,345
1,294
186
167
170
Deferred tax provision/(benefit)
684
695
(255)
Share of net income/(loss) from equity method investments
134
34
80
Trading assets and liabilities, net
(5,513)
13,961
(14,348)
(Increase)/decrease in other assets
6,062
(6,902)
(1,146)
Increase/(decrease) in other liabilities
(23,876)
9,992
(4,772)
Other, net
1,196
(38)
4,584
Total adjustments
(19,842)
19,254
(14,393)
Net cash provided by/(used in) operating activities of continuing operations
(17,620)
22,074
(12,668)
Investing activities of continuing operations (CHF million)

(Increase)/decrease in interest-bearing deposits with banks
275
538
184
(Increase)/decrease in central bank funds sold, securities purchased under

11,685
17,120
46,952
Purchase of investment securities
(1,060)
(677)
(480)
Proceeds from sale of investment securities
930
176
936
Maturities of investment securities
340
832
1,626
Investments in subsidiaries and other investments
(1,264)
(1,792)
(2,039)
Proceeds from sale of other investments
1,553
3,737
3,104
(Increase)/decrease in loans
(23,604)
(9,126)
(11,022)
Proceeds from sales of loans
1,255
1,483
1,090
Capital expenditures for premises and equipment and other intangible assets
(1,056)
(903)
(1,242)
Proceeds from sale of premises and equipment and other intangible assets
1
9
26
Other, net
606
122
3,683
Net cash provided by/(used in) investing activities of continuing operations
(10,339)
11,519
42,818


Consolidated statements of cash flows (continued)
in
2014
2013
2012
Financing activities of continuing operations (CHF million)

Increase/(decrease) in due to banks and customer deposits
26,040
22,463
(12,567)
Increase/(decrease) in short-term borrowings
3,509
6,002
(7,840)
Increase/(decrease) in central bank funds purchased, securities sold under

(31,001)
(36,347)
(39,958)
Issuances of long-term debt
74,159
39,090
38,405
Repayments of long-term debt
(36,471)
(55,135)
(55,936)
Issuances of common shares
297
976
1,930
9,394
9,764
8,355
(10,197)
(10,202)
(8,859)
Dividends paid
(1,252)
(564)
(1,296)
Other, net
(1,192)
(468)
394
Net cash provided by/(used in) financing activities of continuing operations
33,286
(24,421)
(77,372)
Effect of exchange rate changes on cash and due from banks (CHF million)

Effect of exchange rate changes on cash and due from banks
5,790
(1,216)
(1,242)
Net cash provided by/(used in) discontinued operations (CHF million)

Net cash provided by/(used in) discontinued operations
(460) (1,027)
(346)
Net increase/(decrease) in cash and due from banks (CHF million)

Net increase/(decrease) in cash and due from banks
10,657
6,929
(48,810)

Cash and due from banks at beginning of period
68,692
61,763
110,573
Cash and due from banks at end of period
79,349
68,692
61,763
Supplemental cash flow information
in
2014
2013
2012
Cash paid for income taxes and interest (CHF million)

Cash paid for income taxes
1,502
833
1,073
Cash paid for interest
9,527
11,876
15,004
Assets acquired and liabilities assumed in business acquisitions (CHF million)

Fair value of assets acquired
143
4
2,418
Fair value of liabilities assumed
29
0
2,418
Assets and liabilities sold in business divestitures (CHF million)

Assets sold
687
374
0
Liabilities sold
1,084
170
0

240
Notes to the consolidated financial statements
1 Summary of significant accounting policies
The accompanying 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). The financial year for the
Group ends on December 31. Certain reclassifications have been
made to the prior year’s consolidated financial statements to
conform to the current presentation which had no impact on net
income/(loss) or total shareholders’ equity.
In preparing the consolidated financial statements, manage-
ment is required to make estimates and assumptions including, but
not limited to, the qfair value measurements of certain financial
assets and liabilities, the allowance for loan losses, the evaluation
of variable interest entities (VIEs), the impairment of assets other
than loans, recognition of deferred tax assets, tax uncertainties,
pension liabilities, as well as various contingencies. These esti-
mates and assumptions affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities as
of the dates of the consolidated balance sheets and the reported
amounts of revenues and expenses during the reporting period.
While management evaluates its estimates and assumptions on
an ongoing basis, actual results could differ materially from man-
agement’s estimates. Market conditions may increase the risk and
complexity of the judgments applied in these estimates.
Principles of consolidation
The consolidated financial statements include the financial state-
ments of the Group and its subsidiaries. The Group’s subsidiar-
ies are entities in which it holds, directly or indirectly, more than
50% of the voting rights or where it exercises control. The Group
consolidates limited partnerships in cases where it is the general
partner or is a limited partner with substantive rights to kick out
the general partner or dissolve the partnership and participate
in significant decisions made in the ordinary course of business.
The Group also consolidates VIEs where the Group is the primary
beneficiary in accordance with Accounting Standards Codification
(ASC) Topic 810 – Consolidation. The effects of material intercom-
pany transactions and balances have been eliminated.
Where a Group subsidiary is a separate legal entity and deter-
mined to be an investment company as defined by ASC Topic 946
– Financial Services – Investment Companies, interests in other
entities held by this Group subsidiary are not consolidated and are
carried at fair value.
Group entities that qualify as broker-dealer entities as defined
by ASC Topic 940 – Financial Services – Brokers and Dealers do
not consolidate investments in voting interest entities that would
otherwise qualify for consolidation when the investment is held on
a temporary basis for trading purposes. In addition, subsidiaries
that are strategic components of a broker-dealers’ operations are
consolidated regardless of holding intent.
Foreign currency translation
Transactions denominated in currencies other than the functional
currency of the related entity are recorded by remeasuring them
in the functional currency of the related entity using the foreign
exchange rate on the date of the transaction. As of the dates of
the consolidated balance sheets, monetary assets and liabilities,
such as receivables and payables, are reported using the year-
end spot foreign exchange rates. Foreign exchange rate differ-
ences are recorded in the consolidated statements of operations.
Non-monetary assets and liabilities are recorded using the historic
exchange rate.
For the purpose of consolidation, the assets and liabilities of
Group companies with functional currencies other than Swiss
francs are translated into Swiss franc equivalents using year-end
spot foreign exchange rates, whereas revenues and expenses
are translated using the weighted average foreign exchange rate
for the year. Translation adjustments arising from consolidation
are included in accumulated other comprehensive income/(loss)
(AOCI) within total shareholders’ equity. Cumulative translation
adjustments are released from AOCI and recorded in the con-
solidated statements of operations when the Group disposes and
loses control of a consolidated foreign subsidiary.
Fair value measurement and option
The fair value measurement guidance establishes a single authori-
tative definition of fair value and sets out a framework for measur-
ing fair value. The fair value option creates an alternative measure-
ment treatment for certain financial assets and financial liabilities.
The fair value option can be elected at initial acquisition of the
eligible item or at the date when the Group enters into an agree-
ment which gives rise to an eligible item (e.g., a firm commitment
or a written loan commitment). If not elected at initial recognition,
the fair value option can be applied to an item upon certain trig-
gering events that give rise to a new basis of accounting for that
item. The application of the fair value option to a financial asset or
a financial liability does not change its classification on the face of
the balance sheet and the election is irrevocable. Changes in fair
value resulting from the election are recorded in trading revenues.
u Refer to “Fair value option” in Note 34 – Financial instruments for further
information.
Cash and due from banks consists of currency on hand, demand
deposits with banks or other financial institutions and cash equiva-
lents. Cash equivalents are defined as short-term, highly liquid
instruments with original maturities of three months or less, which
are held for cash management purposes.
Reverse repurchase and repurchase agreements
Purchases of securities under resale agreements (qreverse repur-
chase agreements) and securities sold under agreements to repur-
chase substantially identical securities (qrepurchase agreements)


do not constitute economic sales and are therefore treated as col-
lateralized financing transactions and are carried in the consoli-
dated balance sheet at the amount of cash disbursed or received,
respectively. Reverse repurchase agreements are recorded as col-
lateralized assets while repurchase agreements are recorded as
liabilities, with the underlying securities sold continuing to be rec-
ognized in trading assets or investment securities. The fair value
of securities to be repurchased and resold is monitored on a daily
basis, and additional collateral is obtained as needed to protect
against credit exposure.
Assets and liabilities recorded under these agreements are
accounted for on one of two bases, the accrual basis or the fair
value basis. Under the accrual basis, interest earned on reverse
repurchase agreements and interest incurred on repurchase agree-
ments are reported in interest and dividend income and interest
expense, respectively. The fair value basis of accounting may be
elected pursuant to ASC Topic 825 – Financial Instruments, and
any resulting change in fair value is reported in trading revenues.
Accrued interest income and expense are recorded in the same
manner as under the accrual method. The Group has elected the
fair value basis of accounting on some of its agreements.
Reverse repurchase and repurchase agreements are netted if
they are with the same counterparty, have the same maturity date,
settle through the same clearing institution and are subject to the
same master netting agreement.
Securities lending and borrowing transactions
Securities borrowed and securities loaned that are cash-collater-
alized are included in the consolidated balance sheets at amounts
equal to the cash advanced or received. If securities received in
a securities lending and borrowing transaction as collateral may
be sold or repledged, they are recorded as securities received as
collateral in the consolidated balance sheet and a corresponding
liability to return the security is recorded. Securities lending trans-
actions against non-cash collateral in which the Group has the
right to resell or repledge the collateral received are recorded at
the fair value of the collateral initially received. For securities lend-
ing transactions, the Group receives cash or securities collateral
in an amount generally in excess of the market value of securi-
ties lent. The Group monitors the fair value of securities borrowed
and loaned on a daily basis with additional collateral obtained as
necessary.
Fees and interest received or paid are recorded in interest
and dividend income and interest expense, respectively, on an
accrual basis. In the case where the fair value basis of accounting
is elected, any resulting change in fair value is reported in trading
revenues. Accrued interest income and expense are recorded in
the same manner as under the accrual method.
Transfers of financial assets
The Group transfers various financial assets, which may result in
the sale of these assets to special purpose entities (SPEs), which
in turn issue securities to investors. The Group values its beneficial
interests at fair value using quoted market prices, if such positions
are traded on an active exchange or financial models that incorpo-
rate observable and unobservable inputs.
u Refer to “Note 33 – Transfers of financial assets and variable interest entities”
for further information on the Group’s transfer activities.
Trading assets and liabilities
Trading assets and liabilities include debt and equity securities,
derivative instruments, certain loans held in broker-dealer entities,
commodities and precious metals. Items included in the trading
portfolio are carried at fair value and classified as held for trading
purposes based on management’s intent. Regular-way security
transactions are recorded on a trade-date basis. Unrealized and
realized gains and losses on trading positions are recorded in trad-
ing revenues.
Derivatives
Freestanding qderivative contracts are carried at fair value in the
consolidated balance sheets regardless of whether these instru-
ments are held for t

Annual Report 2014

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Annual Report 2014