Investment Bank

Business Group reporting

In second quarter 2005, the Investment Bank posted a pre-tax profit of CHF 1,077 million, up 12% from the same period last year. Pre-goodwill, pre-tax profit was up 5%. Lower revenues in fixed income, rates and currencies were partly offset by very strong results in investment banking and a robust equities performance.

Search only in Quarterly Reporting Q2 2005

Spreadsheets

Business Group reporting

	Quarter ended			% change from		Year to date

CHF million	30.6.05	31.3.05	30.6.04	1Q05	2Q04	30.6.05	30.6.04


Equities	1,438	1,646	1,401	(13)	3	3,084	3,123
Fixed income, rates and currencies	1,643	2,222	1,999	(26)	(18)	3,865	4,594
Investment banking	599	465	510	29	17	1,064	971


Income	3,680	4,333	3,910	(15)	(6)	8,013	8,688
Adjusted expected credit loss¹	10	8	(4)	25		18	(4)


Total operating income	3,690	4,341	3,906	(15)	(6)	8,031	8,684


Cash components	1,674	2,089	1,790	(20)	(6)	3,763	3,955
Share-based components	293	277	225	6	30	570	543


Total personnel expenses	1,967	2,366	2,015	(17)	(2)	4,333	4,498
General and administrative expenses	461	490	747	(6)	(38)	951	1,259
Services to / from other business units	143	142	45	1	218	285	89
Depreciation of property and equipment	29	28	63	4	(54)	57	113
Amortization of goodwill	0	0	64		(100)	0	128
Amortization of other intangible assets	13	12	9	8	44	25	18


Total operating expenses	2,613	3,038	2,943	(14)	(11)	5,651	6,105


Business Group performance before tax	1,077	1,303	963	(17)	12	2,380	2,579


Business Group performance before tax and amortization of goodwill	1,077	1,303	1,027	(17)	5	2,380	2,707
KPIs

Compensation ratio (%)²	53	55	52			54	52


Cost / income ratio (%)³	71.0	70.1	75.3			70.5	70.3
Cost / income ratio before goodwill (%)	71.0	70.1	73.6⁴			70.5	68.8⁴


Non-performing loans / gross loans (%)	0.2	0.2	0.4
Impaired loans / gross loans (%)	0.3	0.4	0.7
Average VaR (10-day 99%)	362	371	331	(2)	9
Capital return and BIS data

Return on adjusted regulatory capital (%)⁵						28.9	36.3
Return on adjusted regulatory capital before goodwill (%)						28.9	38.1⁶
BIS risk-weighted assets (CHF million)	141,453	130,099	113,438	9	25
Goodwill (CHF million)	3,788	3,512	3,273	8	16
Adjusted regulatory capital (CHF million)⁷	17,933	16,522	14,617	9	23

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

	30.6.05	31.3.05	30.6.04	1Q05	2Q04	30.6.05	30.6.04


Deferral (included in adjusted expected credit loss) (CHF million)	40	33	19	21	111	73	39
Client assets (CHF billion)	161	153	142	5	13
Headcount (full-time equivalents)	17,005	16,764	15,530	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 financial statements).
2 Personnel expenses / income.
3 Operating expenses / income.
4 Operating expenses less the amortization of goodwill / income.
5 Annualized Business Group performance before tax / adjusted regulatory capital year to date average.
6 Annualized 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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