Investment Bank

Business Group reporting

In third quarter 2005, the Investment Bank posted a pre-tax profit of CHF 1,386 million, up 95% from the same period last year. Before goodwill, pre-tax profit was up 77%. Excellent performance in all three business areas resulted in one of our best quarters ever, with particularly strong results in equities and investment banking.

Search only in Quarterly Reporting Q3 2005

Spreadsheets

Business Group reporting

	Quarter ended			% change from		Year to date

CHF million	30.9.05	30.6.05	30.9.04	2Q05	3Q04	30.9.05	30.9.04


Equities	1,980	1,438	1,185	38	67	5,064	4,308
Fixed income, rates and currencies	2,108	1,754	1,685	20	25	6,145	6,457
Investment banking	592	599	351	(1)	69	1,656	1,322


Income	4,680	3,791	3,221	23	45	12,865	12,087
Adjusted expected credit loss¹	11	10	(8)	10		29	(12)


Total operating income	4,691	3,801	3,213	23	46	12,894	12,075


Cash components	2,196	1,724	1,465	27	50	6,048	5,503
Share-based components	313	300	218	4	44	897	771


Total personnel expenses	2,509	2,024	1,683	24	49	6,945	6,274
General and administrative expenses	582	469	602	24	(3)	1,544	1,874
Services to / from other business units	164	149	65	10	152	462	166
Depreciation of property and equipment	37	30	71	23	(48)	96	186
Amortization of goodwill	0	0	72		(100)	0	213
Amortization of other intangible assets	13	13	8	0	63	38	26


Total operating expenses	3,305	2,685	2,501	23	32	9,085	8,739


Business Group performance before tax	1,386	1,116	712	24	95	3,809	3,336


Business Group performance before tax and amortization of goodwill	1,386	1,116	784	24	77	3,809	3,549



KPIs

Compensation ratio (%)²	54	53	52			54	52


Cost / income ratio (%)3	70.6	70.8	77.6			70.6	72.3
Cost / income ratio before goodwill (%)3	70.6	70.8	75.4			70.6	70.5


Non-performing loans / gross loans (%)	0.2	0.2	0.4
Impaired loans / gross loans (%)	0.2	0.3	0.6
Average VaR (10-day 99%)⁴	343	359	376	(4)	(9)



Capital return and BIS data

Return on adjusted regulatory capital (%)⁵						28.8	29.7
Return on adjusted regulatory capital before goodwill (%)⁵						28.8	31.6
BIS risk-weighted assets (CHF million)	155,103	142,046	121,430	9	28
Goodwill (CHF million)	4,256	4,185	3,624	2	17
Adjusted regulatory capital (CHF million)⁶	19,766	18,390	15,767	7	25

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

	30.9.05	30.6.05	30.9.04	2Q05	3Q04	30.9.05	30.9.04


Deferral (included in adjusted expected credit loss) (CHF million)	41	40	16	2	156	114	55
Client assets (CHF billion)	168	161	145	4	16
Personnel (full-time equivalents)	17,954	17,430	16,662	3	8

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 VaR for the Investment Bank includes the municipal securities business of Wealth Management USA from 1 January 2005. The business was transferred to the Investment Bank from 1 July 2005. Figures for second quarter 2005 have been restated.
5 Annualized Business Group performance before tax / adjusted regulatory capital year to date average.
6 10% of BIS risk-weighted assets plus goodwill.

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