Investment Bank

Business Group reporting

In first quarter 2005, the Investment Bank posted a pre-tax profit of CHF 1,303 million, down 19% from the record first quarter 2004. Pre-goodwill, pre-tax profit was down 22%. Lower revenues in the equities and fixed income, rates and currencies businesses were partially offset by a robust performance in investment banking.

Search only in Quarterly Reporting Q1 2005

Spreadsheets

Business Group reporting

	Quarter ended			% change from

CHF million	31.3.05	31.12.04	31.3.04	4Q04	1Q04


Equities	1,646	1,598	1,722	3	(4)
Fixed income, rates and currencies	2,222	1,735	2,595	28	(14)
Investment banking	465	593	461	(22)	1


Income	4,333	3,926	4,778	10	(9)
Adjusted expected credit loss¹	8	5	0	60


Total operating income	4,341	3,931	4,778	10	(9)


Cash components	2,089	1,590	2,165	31	(4)
Share-based components	277	245	318	13	(13)


Total personnel expenses	2,366	1,835	2,483	29	(5)
General and administrative expenses	490	656	512	(25)	(4)
Services to / from other business units	142	52	44	173	223
Depreciation	28	55	50	(49)	(44)
Amortization of goodwill	0	59	64	(100)	(100)
Amortization of other intangible assets	12	10	9	20	33


Total operating expenses	3,038	2,667	3,162	14	(4)


Business Group performance before tax	1,303	1,264	1,616	3	(19)


Business Group performance before tax and amortization of goodwill	1,303	1,323	1,680	(2)	(22)



KPIs

Compensation ratio (%)²	55	47	52


Cost / income ratio (%)³	70.1	67.9	66.2
Cost / income ratio before goodwill (%)	70.1	66.4⁴	64.8⁴
Non-performing loans / gross loans (%)	0.2	0.4	0.6
Impaired loans / gross loans (%)	0.4	0.6	1.0
Average VaR (10-day 99%)	371	358	366	4	1



Capital return and BIS data

Return on adjusted regulatory capital (%)⁵	33.3	31.0	46.3
Return on adjusted regulatory capital before goodwill (%)	33.3	32.8⁶	48.2⁶
BIS risk-weighted assets (CHF million)	130,099	116,067	109,539	12	19
Goodwill (CHF million)	3,512	3,199	3,381	10	4
Adjusted regulatory capital (CHF million)⁷	16,522	14,806	14,335	12	15

Additional information	As at or for the quarter ended			% change from

	31.3.05	31.12.04	31.3.04	4Q04	1Q04


Deferral (included in adjusted expected credit loss) (CHF million)	33	30	20	10	65
Client assets (CHF billion)	153	147	152	4	1
Headcount (full-time equivalents)	16,764	16,551	15,416	1	9

1 In management accounts, adjusted expected credit loss rather than credit loss expense is reported for the Business Groups (see note 2 to the fiinancial statements).
2 Personnel expenses / income.
3 Operating expenses / income.
4 Operating expenses less the amortization of goodwill / income.
5 Annualized year to date Business Group performance before tax / adjusted regulatory capital year to date average.
6 Annualized year to date Business Group performance before tax and amortization of goodwill / adjusted regulatory capital year to date average.
7 10% of BIS risk-weighted assets plus goodwill.

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