Media Relations CREDIT SUISSE GROUP P.O. Box 1 CH-8070 Zurich www.credit-suisse.com Telephone +41 1 333 88 44 Telefax +41 1 333 88 77 media.relations@credit-suisse.com
CREDIT SUISSE GROUP REPORTS STRONG REVENUE GROWTH AND NET INCOME OF CHF 1.9 BILLION FOR THE FIRST QUARTER OF 2004 Credit Suisse Financial Services Delivers Very Strong Net Income Across All Segments and Reports An Annualized Net New Asset Growth Rate of 8.4% at Private Banking Credit Suisse First Boston Reports Markedly Improved First Quarter Results Reflecting Strong Revenue Growth and Controlled Risk-Taking

Zurich, May 5, 2004 – Credit Suisse Group today reported net income of CHF 1.9 billion for the first quarter of 2004, compared to net income of CHF 279 million in the first quarter of 2003. Credit Suisse Financial Services recorded net income of CHF 1.1 billion in the first quarter of 2004, driven by increased revenue generation and efficiency improve­ments. Private Banking reported an inflow of CHF 10.8 billion in net new assets, representing an annualized growth rate of 8.4%. Corporate & Retail Banking achieved solid underlying revenues and continued productivity improvements, and both insurance segments recorded high investment income, with lower ad­ministration expenses at Life & Pensions and efficiency gains at Non-Life. At Credit Suisse First Boston, first quarter 2004 net income of CHF 759 million demonstrated the business unit’s operating leverage, with progress in revenue growth and controlled risk-taking. Its return on average allocated capital was 28.1% and its pre-tax margin was 23.9%. Credit Suisse Group’s consolidated BIS tier 1 ratio was 11.5% as of March 31, 2004.

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Credit Suisse Group recorded a net new asset inflow of CHF 15.6 billion in the first quarter of 2004. Inflows of CHF 10.8 billion at Private Banking − representing an annualized growth rate of 8.4% − were a major contributor to this result. Corporate & Retail Banking reported CHF 0.9 billion of net new assets, and Life & Pensions recorded an inflow of CHF 2.1 billion in the first quarter of 2004. The Institutional Securities segment recorded CHF 1.8 billion of inflows. The Group’s total assets under management amounted to CHF 1,241.3 billion as of March 31, 2004, an increase of 5.1% from December 31, 2003.

Credit Suisse Financial Services

Credit Suisse Financial Services recorded net income of CHF 1.1 billion in the first quarter of 2004, up 99% compared to the fourth quarter of 2003 and up more than seven-fold compared to the first quarter of 2003. All four segments contributed to this increase, which was attributable to good revenue generation and efficiency improvements. Net revenues increased 8% compared to the first quarter of 2003, while total operating expenses remained practically unchanged.

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Private Banking reported net income of CHF 681 million, up 72% compared to the first quarter of 2003. Net revenues rose 30% in the first quarter of 2004 compared to the first quarter of 2003. Commissions and fees were also up 30%, driven by a higher average asset base, significantly better brokerage revenues − reflecting increased client activity − and high product issuing fees. Total operating expenses rose 12% compared to the first quarter of 2003, due to higher incentive-related compensation accruals − reflecting the better result − as well as higher commission expenses in line with increased brokerage activity, partially offset by further efficiency improvements. Compared to the fourth quarter of 2003, total operating expenses fell 1%. The cost/income ratio decreased 8.9 percentage points compared to the first quarter of 2003 to 55.3%. The first quarter 2004 gross margin increased 17.0 basis points compared to the first quarter of 2003, to 146.3 basis points.

Corporate & Retail Banking recorded net income of CHF 189 million in the first quarter of 2004, up 22% compared to the first quarter of 2003. Net revenues were practically unchanged compared to the first quarter of 2003. Total operating expenses fell 5% in the same period due to further efficiency gains − partly offset by higher incentive-related compensation accruals. Credit provisions were low in the first quarter. The segment further improved its cost/income ratio to 62.8%, down 4.4 percentage points compared to the first quarter of 2003.

Life & Pensions reported net income of CHF 139 million in the first quarter of 2004, compared to a net loss of CHF 517 million in the first quarter of 2003, which was impacted by the cumulative effect of a change in accounting for provisions for policyholder guarantees and annuities. The total business volume, which includes deposits from policyholders and gross premiums written, declined 2% compared to the first quarter of 2003. Insurance underwriting and acquisition expenses were almost flat, whereas administration expenses decreased 22% in the first quarter of 2004 compared to the first quarter of 2003. The expense ratio improved by 0.9 percentage points to 6.6% in the first quarter of 2004 compared to the first quarter of 2003. Net investment income was strong, up 31% compared to the first quarter of 2003. On March 24, 2004, the Swiss government passed legislation that provides for a mandatory participation in profits to policyholders in respect of the regulated employee benefit business in Switzerland. As a result, initial provisions of CHF 117 million were recorded in the first quarter of 2004, with an after-tax impact of CHF 91 million.

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Non-Life reported net income of CHF 103 million for the first quarter of 2004, up 12% from the first quarter of 2003. Net premiums earned also rose 12% compared to the first quarter of 2003. The combined ratio improved by 1.0 percentage points to 100.4% compared to the first quarter of 2003. The claims ratio increased by 2.8 percentage points, and the expense ratio fell 3.8 percentage points compared to the first quarter of 2003, as underwriting and acquisition as well as administration expenses decreased slightly despite higher premium volumes. The segment reported a 66% increase in net investment income in the first quarter of 2004 compared to the first quarter of 2003.

Credit Suisse First Boston

Credit Suisse First Boston reported net income of CHF 759 million in the first quarter of 2004, up 27% − or 39% on a US dollar basis − compared to the first quarter of 2003. This performance demonstrated the business unit’s operating leverage, with progress in revenue growth and controlled risk-taking, accompanied by continued cost controls. First quarter net revenues were up 15% from the first quarter of 2003, reflecting improvements across most revenue categories and regions. Total operating expenses increased 9% compared to the first quarter of 2003. The business unit’s return on average allocated capital was 28.1% and the pre-tax margin was 23.9% in the first quarter of 2004.

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Institutional Securities reported a 22% increase in net income in the first quarter of 2004 − or 34% on a US dollar basis − compared to the first quarter of 2003, benefiting from favorable markets and higher client and proprietary activity. Net revenues rose 12% compared to the first quarter of 2003 − or 23% on a US dollar basis − reflecting a 6% increase in fixed income trading revenues on a US dollar basis, as well as a significant increase in equity trading revenues. In aggregate, debt and equity underwriting revenues were up 41% from the first quarter of 2003, primarily on the strength of leveraged finance, assets and real estate securitizations, and equity new issuances. First quarter 2004 non-compensation expenses were down 12% from the first quarter of 2003 − primarily reflecting the weakening US dollar − and were down 4% on a US dollar basis. Compensation expenses rose 22%, reflecting higher revenues. Institutional Securities achieved substantial progress in respect of its financial benchmarks, reporting a return on average allocated capital of 25.6% and a pre-tax margin of 23.0%.

At Wealth & Asset Management, net income was up 56% in the first quarter of 2004 compared to the first quarter of 2003, due largely to improvements at Credit Suisse Asset Management. Net revenues rose 28% compared to the first quarter of 2003, reflecting higher asset management fees and performance gains on private equity investments and the impact of the consolidation of certain private equity funds under US GAAP. Total operating expenses rose 3% compared to the first quarter of 2003. The segment’s pre-tax margin and return on average allocated capital improved substantially compared to the first quarter of 2003. Credit Suisse Asset Management will henceforth include the new Alternative Capital division, which brings together Credit Suisse First Boston’s alternative investment activities, including private equity and private fund groups.

Outlook
Credit Suisse Group started the year successfully, benefiting from progress achieved in all of its businesses and improved economic conditions. The Group remains optimistic about 2004, given present levels of client activity and current economic conditions.

For additional information with respect to Credit Suisse Group’s results for the first quarter of 2004, we refer you to the Group’s Quarterly Report Q1 2004, as well as the Group’s slide presentation for analysts and the press, posted on the Internet at: www.credit-suisse.com/results.

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Credit Suisse Group
Credit Suisse Group is a leading global financial services company headquartered in Zurich. The business unit Credit Suisse Financial Services provides private clients and small and medium-sized companies with private banking and financial advisory services, banking products, and pension and insurance solutions from Winterthur. The business unit Credit Suisse First Boston, an investment bank, serves global institutional, corporate, government and individual clients in its role as a financial intermediary. Credit Suisse Group’s registered shares (CSGN) are listed in Switzer­land and in the form of American Depositary Shares (CSR) in New York. The Group employs around 60,000 staff worldwide. As of March 31, 2004, it reported assets under management of CHF 1,241.3 billion.

Cautionary Statement Regarding Forward-Looking Information
This press release contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements. Words such as “believes,” “anticipates,” “expects,” "intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing. We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.

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Letter to Shareholders Q1 2004















Dear shareholders,

Credit Suisse Group delivered a strong performance in the first quarter, with revenue growth driven by higher levels of client activity and more favorable economic conditions. These results demonstrate Credit Suisse Group’s continued progress in remaining disciplined on costs and risk management, while successfully growing key businesses to realize the full potential of its global platform.


Credit Suisse Group reported net income of CHF 1.9 billion for the first quarter of 2004, compared to net income of CHF 279 million in the first quarter of 2003.

Credit Suisse Financial Services recorded net income of CHF 1.1 billion in the first quarter of 2004, driven by increased revenue generation and efficiency improvements. Private Banking reported an inflow of CHF 10.8 billion in net new assets, representing an annualized growth rate of 8.4%. Corporate & Retail Banking achieved solid underlying revenues and continued productivity improvements, and both insurance segments recorded high investment income, with lower administration expenses at Life & Pensions and efficiency gains at Non-Life.

At Credit Suisse First Boston, first quarter 2004 net income of CHF 759 million demonstrated the business unit’s operating leverage, with progress in revenue growth and controlled risk-taking. Its return on average allocated capital was 28.1% and its pre-tax margin was 23.9%.

Credit Suisse Group’s consolidated BIS tier 1 ratio was 11.5% as of March 31, 2004.

The first quarter of 2004 represents the first period in which the business was operated in line with US GAAP. Prior period information has been presented in accordance with US GAAP, although the business was managed in line with Swiss GAAP until the end of 2003.

Net new assets
Credit Suisse Group recorded a net new asset inflow of CHF 15.6 billion in the first quarter of 2004. Inflows of CHF 10.8 billion at Private Banking – representing an annualized growth rate of 8.4% – were a major contributor to this result. Corporate & Retail Banking reported CHF 0.9 billion of net new assets, and Life & Pensions recorded an inflow of CHF 2.1 billion in the first quarter of 2004. The Institutional Securities segment recorded CHF 1.8 billion of inflows. Credit Suisse Group’s total assets under management amounted to CHF1,241.3 billion as of March 31, 2004, an increase of 5.1% from December 31, 2003.

Credit Suisse Financial Services
Credit Suisse Financial Services recorded net income of CHF 1.1 billion in the first quarter of 2004, up 99% compared to the fourth quarter of 2003 and up more than seven-fold compared to the first quarter of 2003. All four segments contributed to this increase, which was attributable to good revenue generation and efficiency improvements. Net revenues increased 8% compared to the first quarter of 2003, while total operating expenses remained practically unchanged.

Private Banking
Private Banking reported net income of CHF 681 million, up 72% compared to the first quarter of 2003. Net revenues rose 30% in the first quarter of 2004 compared to the first quarter of 2003. Commissions and fees were also up 30%, driven by a higher average asset base, significantly better brokerage revenues – reflecting increased client activity – and high product issuing fees. Total operating expenses rose 12% compared to the first quarter of 2003, due to higher incentive-related compensation accruals – reflecting the better result – as well as higher commission expenses in line with increased brokerage activity, partially offset by further efficiency improvements. Compared to the fourth quarter of 2003, total operating expenses fell 1%. The cost/income ratio decreased 8.9 percentage points compared to the first quarter of 2003 to 55.3%. The first quarter 2004 gross margin increased 17.0 basis points compared to the first quarter of 2003, to 146.3 basis points.

Corporate & Retail Banking
Corporate & Retail Banking recorded net income of CHF 189 million in the first quarter of 2004, up 22% compared to the first quarter of 2003. Net revenues were practically unchanged compared to the first quarter of 2003. Total operating expenses fell 5% in the same period due to further efficiency gains, – partly offset by higher incentive-related compensation accruals. Credit provisions were low in the first quarter. The segment further improved its cost/income ratio to 62.8%, down 4.4 percentage points compared to the first quarter of 2003.

Life & Pensions
Life & Pensions reported net income of CHF 139 million in the first quarter of 2004, compared to a net loss of CHF 517 million in the first quarter of 2003, which was impacted by the cumulative effect of a change in accounting for provisions for policyholder guarantees and annuities. The total business volume, which includes deposits from policyholders and gross premiums written, declined 2% compared to the first quarter of 2003. Insurance underwriting and acquisition expenses were almost flat, whereas administration expenses decreased 22% in the first quarter of 2004 compared to the first quarter of 2003. The expense ratio improved by 0.9 percentage points to 6.6% in the first quarter of 2004 compared to the first quarter of 2003. Net investment income was strong, up 31% compared to the first quarter of 2003. On March 24, 2004, the Swiss government passed legislation that provides for a mandatory participation in profits to policyholders in respect of the regulated employee benefit business in Switzerland. As a result, initial provisions of CHF 117 million were recorded in the first quarter of 2004, with an after-tax impact of CHF 91 million.

Non-Life
Non-Life reported net income of CHF 103 million for the first quarter of 2004, up 12% from the first quarter of 2003. Net premiums earned rose 12% compared to the first quarter of 2003. The combined ratio improved by 1.0 percentage points to 100.4% compared to the first quarter of 2003. The claims ratio increased by 2.8 percentage points, and the expense ratio fell 3.8 percentage points compared to the first quarter of 2003, as underwriting and acquisition as well as administration expenses decreased slightly despite higher premium volumes. The segment reported a 66% increase in net investment income in the first quarter of 2004 compared to the first quarter of 2003.

Credit Suisse First Boston
Credit Suisse First Boston reported net income of CHF 759 million in the first quarter of 2004, up 27% – or 39% on a US dollar basis – compared to the first quarter of 2003. This performance demonstrated the business unit’s operating leverage, with progress in revenue growth and controlled risk-taking, accompanied by continued cost controls. First quarter net revenues were up 15% from the first quarter of 2003, reflecting improvements across most revenue categories and regions. Total operating expenses increased 9% compared to the first quarter of 2003. The business unit’s return on average allocated capital was 28.1% and the pre-tax margin was 23.9% in the first quarter of 2004.

Institutional Securities
Institutional Securities reported a 22% increase in net income in the first quarter of 2004 – or 34% on a US dollar basis – compared to the first quarter of 2003, benefiting from favorable markets and higher client and proprietary activity. Net revenues rose 12% compared to the first quarter of 2003 – or 23% on a US dollar basis – reflecting a 6% increase in fixed income trading revenues on a US dollar basis, as well as a significant increase in equity trading revenues. In aggregate, debt and equity underwriting revenues were up 41% from the first quarter of 2003, primarily on the strength of leveraged finance, assets and real estate securitizations, and equity new issuances. First quarter 2004 non-compensation expenses were down 12% from the first quarter of 2003 – primarily reflecting the weakening US dollar – and were down 4% on a US dollar basis. Compensation expenses rose 22%, reflecting higher revenues. Institutional Securities achieved substantial progress in respect of its financial benchmarks, reporting a return on average allocated capital of 25.6% and a pre-tax margin of 23.0%.

Wealth & Asset Management
At Wealth & Asset Management, net income was up 56% in the first quarter of 2004 compared to the first quarter of 2003, due largely to improvements at Credit Suisse Asset Management. Net revenues rose 28% compared to the first quarter of 2003, reflecting higher asset management fees and performance gains on private equity investments and the impact of the consolidation of certain private equity funds under US GAAP. Total operating expenses rose 3% compared to the first quarter of 2003. The segment’s pre-tax margin and return on average allocated capital improved substantially compared to the first quarter of 2003. Credit Suisse Asset Management will henceforth include the new Alternative Capital division, which brings together Credit Suisse First Boston’s alternative investment activities, including the private equity and private fund groups.

Outlook
Credit Suisse Group started the year successfully, benefiting from progress achieved in all of its businesses and improved economic conditions. We remain optimistic about 2004, given present levels of client activity and current economic conditions.

Oswald J. Grübel John J. Mack
May 2004

Segment reporting
		Net revenues						Net income
in CHF m		1Q2004		4Q2003		1Q2003		1Q2004		4Q2003		1Q2003
Private Banking		1,940		1,818		1,487		681		629		396
Corporate & Retail Banking		787		826		774		189		50		155
Life & Pensions		6,036		3,607		6,047		139		(176)		(517)
Non-Life		3,125		2,943		2,672		103		55		92
Institutional Securities		3,997		2,705		3,554		623		96		511
Wealth & Asset Management		866		956		675		136		26		87
Corporate Center		(180)		20		(513)		(10)		104		(445)
Credit Suisse Group		16,571		12,875		14,696		1,861		784		279

		Total assets
in CHF m		31.03.04		31.12.03
Private Banking		197,822		174,934
Corporate & Retail Banking		101,501		98,468
Life & Pensions and Non-Life		168,757		163,028
Institutional Securities		762,931		644,375
Wealth & Asset Management		8,066		7,418
Corporate Center		(100,881)		(83,915)
Credit Suisse Group		1,138,196		1,004,308

Consolidated statements of income (unaudited)
								Change		Change
								in % from		in % from
in CHF m		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Interest and dividend income		7,742		7,209		6,527		7		19
Interest expense		(4,663)		(4,169)		(4,032)		12		16
Net interest income		3,079		3,040		2,495		1		23
Commissions and fees		3,571		3,275		3,029		9		18
Trading revenues		1,516		794		1,287		91		18
Realized gains/(losses) from investment securities, net		528		353		81		50		–
Insurance net premiums earned		7,417		5,142		7,458		44		(1)
Other revenues		460		271		346		70		33
Total noninterest revenues		13,492		9,835		12,201		37		11
Net revenues		16,571		12,875		14,696		29		13
Policyholder benefits, claims and dividends		7,594		6,437		7,367		18		3
Provision for credit losses		34		191		197		(82)		(83)
Total benefits, claims and credit losses		7,628		6,628		7,564		15		1
Insurance underwriting, acquisition and administration expenses		1,059		1,223		1,145		(13)		(8)
Banking compensation and benefits		3,428		2,526		2,942		36		17
Other expenses		1,833		2,562		1,935		(28)		(5)
Restructuring charges		4		43		25		(91)		(84)
Total operating expenses		6,324		6,354		6,047		0		5
Income from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes		2,619		(107)		1,085		–		141
Income tax expense/(benefit)		570		(946)		318		–		79
Dividends on preferred securities for consolidated entities		0		34		32		–		–
Minority interests, net of tax		119		(29)		(1)		–		–
Income from continuing operations before extraordinary items and cumulative effect of accounting changes		1,930		834		736		131		162
Income/(loss) from discontinued operations, net of tax		(64)		(38)		69		68		–
Extraordinary items, net of tax		0		2		4		–		–
Cumulative effect of accounting changes, net of tax		(5)		(14)		(530)		(64)		(99)
Net income		1,861		784		279		137		–
Return on equity		21.3%		9.2%		3.3%
Earnings per share in CHF
Basic earnings per share		1.61		0.66		0.24
Diluted earnings per share		1.48		0.64		0.24

Key figures
						Change
						in % from
in CHF m, except where indicated		31.03.04		31.12.03		31.12.03
Total assets		1,138,196		1,004,308		13
Shareholders' equity		35,338		33,991		4
Assets under management in CHF bn		1,241.3		1,181.1		5
Market price per registered share in CHF		43.90		45.25		(3)
Market capitalization		49,124		51,149		(4)
Book value per share in CHF		31.58		30.07		5
BIS tier 1 ratio		11.5%		11.7%		–
BIS total capital ratio		16.4%		17.4%		–

Additional information
Additional information on the Credit Suisse Group’s first quarter 2004 results can be obtained in the Quarterly Report 1/04 and the analysts’ presentation, which are available on our website at: www.credit-suisse.com/results. The Quarterly Report (English only) can be ordered at Credit Suisse, KIDM23, Uetlibergstrasse 231, 8070 Zurich, fax: +41 1 332 7294.

Cautionary Statement Regarding Forward-Looking Information
This document contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements. Words such as “believes,” “anticipates,” “expects,” “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing. We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.




Credit Suisse Group
Paradeplatz 8
P.O. Box 1
8070 Zurich
Switzerland
Tel. +41 1 212 1616
Fax +41 1 333 2587
www.credit-suisse.com



English

5520174

QUARTERLY REPORT 2004 Q1 Credit Suisse Group is a leading global financial services company headquartered in Zurich. The business unit Credit Suisse Financial Services provides private clients and small and medium-sized companies with private banking and financial advisory services, banking products, and pension and insurance solutions from Winterthur. The business unit Credit Suisse First Boston, an investment bank, serves global institutional, corporate, government and individual clients in its role as a financial intermediary. Credit Suisse Group’s registered shares (CSGN) are listed in Switzerland and in the form of American Depositary Shares (CSR) in New York. The Group employs around 60,000 staff worldwide. QUARTERLY REPORT 2004 Cautionary statement regarding forward-looking information EDITORIAL CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q1/2004 AN OVERVIEW OF CREDIT SUISSE GROUP Change in primary accounting standard Equity capital Winterthur solvency Net new assets Revenues and expenses Policyholder benefits, claims and dividends Provision for credit losses Outlook Credit Suisse Group structure RISK MANAGEMENT Economic Risk Capital Trends Trading risks Loan exposure REVIEW OF BUSINESS UNITS | CREDIT SUISSE FINANCIAL SERVICES Private Banking Corporate & Retail Banking Life & Pensions Non-Life REVIEW OF BUSINESS UNITS | CREDIT SUISSE FIRST BOSTON Institutional Securities Wealth & Asset Management CREDIT SUISSE FIRST BOSTON | SUPPLEMENTAL INFORMATION CONDENSED CONSOLIDATED FINANCIAL INFORMATION | CREDIT SUISSE GROUP NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL INFORMATION Basis of presentation Share-based compensation New accounting pronouncements Financial instruments with off-balance sheet risk Guarantees Other Off-Balance Sheet Commitments INFORMATION FOR INVESTORS

Cautionary statement regarding forward-looking information
This Quarterly Report contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to our plans, objectives or goals; our future economic performance or prospects; the potential effect on our future performance of certain contingencies; and assumptions underlying any such statements.

Words such as "believes," "anticipates," "expects," "intends" and "plans" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable laws.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include (i) market and interest rate fluctuations; (ii) the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations in particular; (iii) the ability of counterparties to meet their obligations to us; (iv) the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations; (v) political and social developments, including war, civil unrest or terrorist activity; (vi) the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations; (vii) the ability to maintain sufficient liquidity and access capital markets; (viii) operational factors such as systems failure, human error, or the failure to properly implement procedures; (ix) actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations; (x) the effects of changes in laws, regulations or accounting policies or practices; (xi) competition in geographic and business areas in which we conduct our operations; (xii) the ability to retain and recruit qualified personnel; (xiii) the ability to maintain our reputation and promote our brands; (xiv) the ability to increase market share and control expenses; (xv) technological changes; (xvi) the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users; (xvii) acquisitions, including the ability to integrate successfully acquired businesses; (xviii) the adverse resolution of litigation and other contingencies; and (xix) our success at managing the risks involved in the foregoing.

We caution you that the foregoing list of important factors is not exclusive; when evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the risks identified in our most recently filed Form 20-F and reports on Form 6-K furnished to the US Securities and Exchange Commission.



EDITORIAL



Oswald J. Grübel
Co-CEO Credit Suisse Group
Chief Executive Officer
Credit Suisse Financial Services



John J. Mack
Co-CEO Credit Suisse Group
Chief Executive Officer
Credit Suisse First Boston



Dear shareholders, clients and colleagues

Credit Suisse Group reported net income of CHF 1.9 billion in the first quarter of 2004. This positive result was driven primarily by increased revenues across all businesses, improved economic conditions and the continued focus on cost efficiency. The Group’s business units clearly demonstrated the strength of their client franchise, product innovation and operating leverage – meaning their ability to generate higher revenues without a corresponding increase in costs.

Credit Suisse Financial Services achieved one of its best quarterly results ever, with net income of CHF 1.1 billion in the first quarter of 2004, mainly reflecting higher revenues as well as continued cost discipline. All four segments reported very good net income, with a particularly strong performance at Private Banking, which achieved net income of CHF 681 million due mainly to an increased asset base, client activity and product issuance. The segment reported strong net new asset inflows of CHF 10.8 billion for the quarter, representing a very high annualized growth rate of 8.4%. Its gross margin remained high. The good first quarter result recorded by Corporate & Retail Banking reflected solid underlying revenues and the segment’s continuing focus on productivity. Moreover, both insurance segments – Life & Pensions and Non-Life – reported high investment income and further improvements in cost efficiency.

Credit Suisse First Boston recorded net income of CHF 759 million in the first quarter of 2004, demonstrating the business unit’s operating leverage. This performance reflected higher revenues and improved global capital markets. In the first quarter of 2004, Institutional Securities had strong results in the fixed income and equity underwriting and trading businesses, due to more favorable capital markets and improved customer-related activities and trading opportunities. Wealth & Asset Management increased its net income to CHF 136 million, largely on improved fee income and higher asset levels. The solid first quarter performance was reflected in its improved pre-tax margin and return on average allocated capital. In the first quarter of 2004, Credit Suisse First Boston announced the creation of the Alternative Capital division, bringing together its alternative investment activities, including the private equity and private fund groups, in order to better align Credit Suisse First Boston’s significant product capabilities with the high level of market demand.

On January 1, 2004, Credit Suisse Group changed its primary accounting standard from Swiss GAAP to US GAAP. The first quarter of 2004 represents the first period in which the business was operated in line with US GAAP. Prior-period information has been presented in accordance with US GAAP, although the business was managed in line with Swiss GAAP until the end of 2003.

Credit Suisse Group started the year successfully, benefiting from progress achieved in all of its businesses and improved economic conditions. We remain optimistic about 2004 given present levels of client activity and current economic conditions.

Oswald J. Grübel John J. Mack
May 2004






CREDIT SUISSE GROUP FINANCIAL HIGHLIGHTS Q1/2004

Credit Suisse Group financial highlights
								Change		Change
								in % from		in % from
in CHF m, except where indicated		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Consolidated income statement
Net revenues		16,571		12,875		14,696		29		13
Income from continuing operations before extraordinary items and cumulative effect of accounting changes		1,930		834		736		131		162
Net income		1,861		784		279		137		–
Return on equity		21.3%		9.2%		3.3%		–		–
Earnings per share
Basic earnings per share in CHF		1.61		0.66		0.24		–		–
Diluted earnings per share in CHF		1.48		0.64		0.24		–		–
Net new assets in CHF bn		15.6		4.7		(1.5)		–		–

						Change
						in % from
in CHF m, except where indicated		31.03.04		31.12.03		31.12.03
Assets under management in CHF bn		1,241.3		1,181.1		5
Consolidated balance sheet
Total assets		1,138,196		1,004,308		13
Shareholders' equity		35,338		33,991		4
Consolidated BIS capital data 1)
Risk-weighted assets		201,161		190,761		–
Tier 1 ratio		11.5%		11.7%		–
Total capital ratio		16.4%		17.4%		–
Number of employees
Switzerland – banking segments		19,084		19,301		(1)
Switzerland – insurance segments		6,154		6,426		(4)
Outside Switzerland – banking segments		20,422		20,310		1
Outside Switzerland – insurance segments		14,328		14,440		(1)
Number of employees (full-time equivalents)		59,988		60,477		(1)
Stock market data
Market price per registered share in CHF		43.90		45.25		(3)
Market price per American Depositary Share in USD		34.80		36.33		(4)
Market capitalization		49,124		51,149		(4)
Market capitalization in USD m		38,941		41,066		(5)
Book value per share in CHF		31.58		30.07		5
Shares outstanding		1,118,998,681		1,130,362,948		(1)
1) All calculations through December 31, 2003, on the basis of Swiss GAAP. Further details see page 5.

For further information for investors are presented on page 44.



AN OVERVIEW OF CREDIT SUISSE GROUP






Credit Suisse Group achieved a strong start to 2004, reporting net income of CHF 1.9 billion in the first quarter of 2004, up CHF 1.6 billion compared to the first quarter of 2003. Net revenues were up 13% to CHF 16.6 billion compared with the first quarter of 2003. The result was driven by revenue growth in its banking business, continued strong investment performance at Winterthur, cost discipline and the improved overall global economy. In the first quarter of 2004, Credit Suisse Financial Services reported net income of CHF 1.1 billion and Credit Suisse First Boston reported net income of CHF 759 million.


Credit Suisse Financial Services reported net income of CHF 1.1 billion in the first quarter of 2004, compared to CHF 126 million in the first quarter of 2003, reflecting higher revenues and efficiency improvements. All four segments reported very strong net income. Private Banking reported net income of CHF 681 million, driven mainly by high commissions and fees. Corporate & Retail Banking recorded net income of CHF 189 million, based on solid underlying revenues, low credit provisions and low operating expenses. Life & Pensions’ net income of CHF 139 million was driven by high investment income and the continued containment of administration expenses. Non-Life reported net income of CHF 103 million, reflecting significant premium growth, high investment income and further improvements in cost efficiency.

Credit Suisse First Boston reported net income of CHF 759 million in the first quarter of 2004, an increase of 27% compared to the first quarter of 2003, reflecting client-driven revenues, overall improvements in capital markets activity and accompanied by continued cost control. The Institutional Securities segment reported net income of CHF 623 million, an increase of 22% compared to the first quarter of 2003, reflecting increased revenues across most business lines, which were partially offset by increased compensation and benefits. Total investment banking revenues increased by 3% compared to the first quarter of 2003, attributable to debt and equity underwriting. Total trading revenues increased by 12% due to improving global economic conditions. The Wealth & Asset Management segment reported net income of CHF 136 million, an increase of 56% from the first quarter of 2003, primarily reflecting improved revenues from Credit Suisse Asset Management.

Earnings per share in the first quarter of 2004 were CHF 1.61, compared to CHF 0.24 in the first quarter of 2003. The Group’s return on equity was 21.3% in the first quarter of 2004 versus 3.3% in the first quarter of 2003.

Change in primary accounting standard
On January 1, 2004, Credit Suisse Group changed its primary accounting standard from Swiss GAAP to US GAAP. This change was a result of its long-term plan to move to an internationally recognized accounting standard, as well as the requirement of the Swiss Exchange for large listed companies to adopt US GAAP or IFRS.

The first quarter of 2004 represents the first period in which the business was operated in line with US GAAP. Prior period information has been presented in accordance with US GAAP, although the business was managed in line with Swiss GAAP until the end of 2003.

Equity capital
Credit Suisse Group’s consolidated BIS tier 1 ratio was 11.5% as of March 31, 2004. Capital data for prior periods was prepared on the basis of Swiss GAAP. The Group’s shareholders’ equity as of March 31, 2004, amounted to CHF 35.3 billion.

Winterthur solvency
Winterthur’s solvency position improved with its consolidated EU solvency ratio increasing from 142% as of December 31, 2002 to 168% as of December 31, 2003. With effect from January 1, 2004, Winterthur Group has agreed a new measure of consolidated solvency with the Swiss Federal Office of Private Insurance (“BPV”). This method is based on the existing EU group solvency approach and the Swiss stand-alone solvency regulations, but simplifies the calculation by basing it predominantly on the Winterthur Group’s consolidated financial statements. Surplus capital under this revised approach was CHF 2.1 billion as of December 31, 2003.

Winterthur’s shareholders’ equity was CHF 8.1 billion as of March 31, 2004, and CHF 7.8 billion as of December 31, 2003. As of the same dates, minority interests – which are not included in shareholders’ equity – were CHF 704 million and CHF 618 million, respectively.

Net new assets
The Group reported net new assets of CHF 15.6 billion in the first quarter of 2004, with Private Banking contributing net new assets of CHF 10.8 billion, representing a very high annualized growth rate of 8.4%. Corporate & Retail Banking and Life & Pensions reported net new assets in the first quarter of 2004 of CHF 0.9 billion and CHF 2.1 billion, respectively. A net new asset inflow of CHF 1.8 billion was recorded in Institutional Securities.

As of March 31, 2004, the Group’s total assets under management were CHF 1,241.3 billion, an increase of 5.1% compared to December 31, 2003.

Revenues and expenses
Net revenues in the first quarter of 2004 were CHF 16.6 billion, reflecting a 13% increase compared to the first quarter of 2003. This increase in net revenues compared to the first quarter of 2003 was largely due to an 8% increase in net revenues at Credit Suisse Financial Services to CHF 11.9 billion, resulting mainly from strong results achieved in the Private Banking and Non-Life segments. Credit Suisse First Boston increased its net revenues by 15% compared to the first quarter of 2003 to CHF 4.9 billion, mainly due to improved underwriting and trading results in the Institutional Securities segment.

Total operating expenses in the first quarter of 2004 amounted to CHF 6.3 billion, up 5% compared to the first quarter of 2003. This increase resulted from a 17% increase in banking compensation and benefits in the first quarter of 2004 compared to the first quarter of 2003, reflecting the better results. All non-compensation expenses were lower compared to the first quarter of 2003, whereby insurance underwriting, acquisition and administration expenses decreased by 8%, primarily due to efficiency improvements.

Policyholder benefits, claims and dividends
In the insurance segments, total policyholder benefits, claims and dividends reported in the first quarter of 2004 increased by 3% from the first quarter of 2003, mainly as a result of higher claims in Non-Life as well as legislation passed by the Swiss government on March 24, 2004, which provides for mandatory participation in profits to policyholders in respect of the regulated employee benefit business in Switzerland. Provisions initially recorded as a result of this legislation in the Life & Pensions segment amounted to CHF 117 million before tax and CHF 91 million after tax.

Provision for credit losses
Provision for credit losses in the first quarter of 2004 amounted to CHF 34 million, compared to CHF 197 million in the first quarter of 2003. This level reflects a favorable credit environment.

Outlook
Credit Suisse Group started the year successfully, benefiting from progress achieved in all of its businesses and improved economic conditions. The Group remains optimistic about 2004 given present levels of client activity and current economic conditions.


Credit Suisse Group structure

Effective January 1, 2004, the Insurance segment was renamed Non-Life, and Credit Suisse First Boston reorganized its operations by transferring the private equity and private fund groups from the Institutional Securities segment to the CSFB Financial Services segment, which was renamed Wealth & Asset Management.

Overview of segment results
				Corporate &								Wealth &				Credit
		Private		Retail		Life &				Institutional		Asset		Corporate		Suisse
1Q2004, in CHF m		Banking		Banking		Pensions		Non-Life		Securities		Management		Center		Group
Net revenues		1,940		787		6,036		3,125		3,997		866		(180)		16,571
Policyholder benefits, claims and dividends		–		–		5,380		2,214		–		–		–		7,594
Provision for credit losses		6		48		(1)		0		(21)		0		2		34
Total benefits, claims and credit losses		6		48		5,379		2,214		(21)		0		2		7,628
Insurance underwriting, acquisition and administration expenses		–		–		401		661		–		–		(3)		1,059
Banking compensation and benefits		582		275		–		–		2,251		277		43		3,428
Other expenses		493		219		59		67		847		347		(199)		1,833
Restructuring charges		(2)		0		2		4		0		0		0		4
Total operating expenses		1,073		494		462		732		3,098		624		(159)		6,324
Income from continuing operations before taxes, minority interests and cumulative effect of accounting changes		861		245		195		179		920		242		(23)		2,619
Income tax expense		175		56		50		14		257		38		(20)		570
Minority interests, net of tax		5		0		7		(1)		40		68		0		119
Income from continuing operations before cumulative effect of accounting changes		681		189		138		166		623		136		(3)		1,930
Income/(loss) from discontinued operations, net of tax		0		0		0		(63)		0		0		(1)		(64)
Cumulative effect of accounting changes, net of tax		0		0		1		0		0		0		(6)		(5)
Net income		681		189		139		103		623		136		(10)		1,861

BIS capital data
		Credit Suisse				Credit Suisse First Boston				Credit Suisse Group
in CHF m, except where indicated		31.03.04		31.12.03		31.03.04		31.12.03		31.03.04		31.12.03
Risk-weighted positions		87,555		85,158		84,981		80,622		184,326		176,911
Market risk equivalents		5,124		4,675		10,747		8,185		16,835		13,850
Risk-weighted assets		92,679		89,833		95,728		88,807		201,161		190,761
Tier 1 capital		7,374		7,362		11,204		12,062		23,040		22,287
of which non-cumulative perpetual preferred    securities		0		0		1,049		996		2,225		2,169
Tier 1 ratio		8.0%		8.2%		11.7%		13.6%		11.5%		11.7%
Total capital		10,624		10,630		20,503		20,968		33,049		33,207
Total capital ratio		11.5%		11.8%		21.4%		23.6%		16.4%		17.4%
All calculations through December 31, 2003, on the basis of Swiss GAAP. In 2003, the method for capital treatment of Winterthur was adapted in line with the new requirements defined by the Swiss regulator.

Assets under management/client assets
						Change
						in % from
in CHF bn		31.03.04		31.12.03		31.12.03
Private Banking 1)
Assets under management		540.6		511.3		5.7
Client assets		572.6		541.0		5.8
Corporate & Retail Banking 1)
Assets under management		54.4		53.6		1.5
Client assets		97.0		95.2		1.9
Life & Pensions
Assets under management		118.6		113.8		4.2
Client assets		118.6		113.8		4.2
Non-Life
Assets under management		25.8		25.4		1.6
Client assets		25.8		25.4		1.6
Institutional Securities 2)
Assets under management		17.6		12.9		36.4
Client assets		97.9		84.6		15.7
Wealth & Asset Management 2)
Assets under management 3)		484.3		464.1		4.4
Client assets		502.2		482.1		4.2
Credit Suisse Group
Discretionary assets under management		618.9		585.9		5.6
Advisory assets under management		622.4		595.2		4.6
Total assets under management		1,241.3		1,181.1		5.1
Total client assets		1,414.1		1,342.1		5.4

Net new assets
in CHF bn		1Q2004		4Q2003		1Q2003
Private Banking 1)		10.8		4.3		1.5
Corporate & Retail Banking 1)		0.9		0.3		0.2
Life & Pensions		2.1		(2.0)		2.2
Institutional Securities 2)		1.8		0.7		(0.3)
Wealth & Asset Management 2) 3)		0.0		1.4		(5.1)
Credit Suisse Group		15.6		4.7		(1.5)
1) Effective 1.1.2004, corporate client assets in the Corporate & Retail Banking and Private Banking segments have been excluded from Assets under management and Net new assets. There is a minimal advisory role for such clients and the asset flows are often driven more by liquidity requirements than by pure investment reasons. Corporate client assets remain included in the broader metric Client assets. Prior period balances have been adjusted.
2) Certain adjustments have been made to conform to the current presentation.
3) Excluding assets managed on behalf of other entities within Credit Suisse Group.

RISK MANAGEMENT






Credit Suisse Group’s overall position risk, measured on the basis of Economic Risk Capital (ERC), increased 8% in the first quarter of 2004 compared with the previous quarter. The increase was largely due to higher interest rate, foreign exchange and equity risks. The more narrowly defined average Value-at-Risk (VaR) in US dollar terms for the trading book of Credit Suisse First Boston increased by 32% in the first quarter of 2004, due mainly to higher equity positions. The Group’s total gross loan exposure increased 3% as of March 31, 2004, compared with December 31, 2003.


Economic Risk Capital Trends
Credit Suisse Group assesses risk and economic capital adequacy using its ERC model. ERC is designed to measure all quantifiable risks associated with the Group’s activities on a consistent and comprehensive basis. Credit Suisse Group assigns ERC for position risk, operational risk and business risk. Position risk measures the potential annual economic loss associated with market, credit and insurance exposures that is exceeded with a given, small probability (1% for risk management purposes; 0.03% for capital management purposes). ERC is not a measure of the potential impact on reported earnings, since non-trading activities generally are not marked to market through earnings.

Credit Suisse Group’s 1-year, 99% position risk ERC increased 8% as of March 31, 2004, compared to December 31, 2003. The increase was largely due to interest rate, foreign exchange and equity risks.

At the end of the first quarter of 2004, 49% of the Group’s position risk ERC was with Credit Suisse First Boston, 47% was with Credit Suisse Financial Services (of which 68% was with the insurance units and 32% was with the banking units) and 4% was with the Corporate Center.

Trading risks
Credit Suisse Group assumes trading risks through the trading activities of the Institutional Securities segment of Credit Suisse First Boston and to a lesser extent the trading activities of the banking segments of Credit Suisse Financial Services. Trading risks are measured using VaR as one of a range of risk measurement tools. VaR is the potential loss in fair value of trading positions due to adverse market movements over a defined time horizon and for a specified confidence level. In order to show the aggregate market risk in the Group’s trading books, the table below shows the trading-related market risk for Credit Suisse First Boston, Credit Suisse Financial Services and Credit Suisse Group on a consolidated basis, as measured by a 10-day VaR scaled to a 1-day holding period and based on a 99% confidence level. This means that there is a one in 100 chance of incurring a daily trading loss that is at least as large as the reported VaR.

Credit Suisse First Boston’s average 1-day, 99% VaR in the first quarter of 2004 was CHF 66 million, compared to CHF 53 million in the fourth quarter of 2003. In US dollar terms, Credit Suisse First Boston’s average 1-day, 99% VaR was USD 53 million in the first quarter of 2004, compared to USD 40 million in the fourth quarter of 2003. The 32% increase in average VaR in US dollar terms was mainly due to an increase in equity exposure.

Credit Suisse Financial Services’ average 1-day, 99% VaR in the first quarter of 2004 was CHF 14 million, compared to CHF 13 million in the fourth quarter of 2003. The 14% increase was due primarily to higher inventory positions in structured investment products.

The segments with trading portfolios use backtesting to assess the accuracy of the VaR model. Daily backtesting profit and loss is compared to VaR with a one-day holding period. Backtesting profit and loss is a subset of actual trading revenue and includes only the profit and loss effects due to movements in financial market variables such as interest rates, equity prices and foreign exchange rates on the previous night’s positions. It is appropriate to compare this measure with VaR for backtesting purposes, since VaR assesses only the potential change in position value due to overnight movements in financial market variables. On average, an accurate one-day, 99% VaR model should have no more than four backtesting exceptions per year. A backtesting exception occurs when the daily loss exceeds the daily VaR estimate.

Credit Suisse First Boston had no backtesting exceptions over the last 12 months, as evidenced in the graph entitled “CSFB Backtesting”. The histogram entitled “CSFB Trading Revenue Distribution” compares the distribution of daily backtesting profit and loss during the first quarter of 2004 with the distribution of actual trading revenues, which includes fees, commissions, provisions and the profit and loss effects associated with any trading subsequent to the previous night’s positions.

Loan exposure
Credit Suisse Group’s total gross loan exposure was 3% higher at March 31, 2004, compared with December 31, 2003. Loans at Credit Suisse Financial Services increased 3%, while exposure at Credit Suisse First Boston was 2% higher, largely due to foreign currency movements during the period.

Compared to December 31, 2003, non-performing and total impaired loans at Credit Suisse Group declined 11% as of the end of the first quarter of 2004, with reductions reported in both business units.

Non-performing loans at Credit Suisse First Boston declined 16% while total impaired loans were 12% lower. Non-performing loans declined 9% at Credit Suisse Financial Services, while total impaired loans declined 10%.

Provisions for credit losses charged to the income statement for the first quarter of 2004 were CHF 34 million, a significant decrease from both CHF 191 million recorded for the fourth quarter of 2003 and CHF 197 million recorded for the first quarter of 2003. Presented on page 11 are the additions, releases, and recoveries included in calculating the net credit provisions.

Coverage of non-performing loans and total impaired loans improved at Credit Suisse Group and Credit Suisse Financial Services. At Credit Suisse First Boston, coverage of non-performing loans increased while coverage of total impaired loans declined slightly.

Key Position Risk Trends
								Change Analysis: Brief Summary
				Change in % from
in CHF m		31.03.04		31.12.03		31.03.03		31.03.04 vs 31.12.03
Interest Rate, Credit Spread & FX ERC		4,572		19%		30%		Higher interest rate risks at Winterthur due to a shortening of the duration of the bond portfolio plus higher foreign exchange risks at Winterthur.
Equity Investment ERC		3,648		44%		19%		Higher equity risks at CSFB plus a reduction in the diversification benefits across the Group due to more similar risk profiles at CSFB and Winterthur.
Swiss & Retail Lending ERC		1,823		0%		(11%)		No material change.
International Lending ERC		2,437		1%		(26%)		Increase at CSFB due to new commitments, partially offset by a reduction at Winterthur due to the sale of exposures in the context of discontinued businesses.
Emerging markets ERC		1,908		(5%)		6%		Decrease at CSFB as a result of a ratings upgrade of Brazil, partially offset by higher exposures at Winterthur.
Real estate ERC &
Structured asset ERC 1)		3,343		6%		(17%)		Increase in CSFB commercial and residential real estate exposures plus higher positions in asset-backed securities.
Insurance underwriting ERC		674		(3%)		(34%)		No material change.
Simple sum across risk categories		18,405		12%		(2%)
Diversification benefit		(6,059)		21%		1%
Total position risk ERC		12,346		8%		(3%)
1-year, 99% position risk ERC, excluding foreign exchange translation risk. For an assessment of the total risk profile, operational risk ERC and business risk ERC have to be considered. For a more detailed description of the Group’s ERC model, please refer to Credit Suisse Group's Annual Report 2003, which is available on the website: www.credit-suisse.com/annualreport2003. Prior period balances have been restated for methodology changes in order to maintain consistency over time.
1) This category comprises the real estate investments of Winterthur, Credit Suisse First Boston’s commercial real estate exposures, Credit Suisse First Boston’s residential real estate exposures, Credit Suisse First Boston’s asset-backed securities exposure as well as the real estate acquired at auction and real estate for own use in Switzerland.

Market risk in the Credit Suisse Group trading portfolios (99%, 1-day VaR) 1)
		1Q2004								4Q2003
in CHF m		Minimum		Maximum		Average		31.03.04		Minimum		Maximum		Average		31.12.03
Credit Suisse Financial Services
Interest rate & credit spread		3.0		5.4		3.8		3.5		1.4		6.6		4.7		4.7
Foreign exchange rate		1.7		6.9		2.9		4.6		1.2		3.4		2.2		2.0
Equity		7.8		30.4		12.2		12.4		8.7		15.3		10.6		12.7
Commodity		0.4		1.6		0.7		1.4		0.4		1.5		0.9		0.5
Diversification benefit		–	2)	–	2)	(5.4)		(7.5)		–	2)	–	2)	(5.9)		(6.4)
Total		9.6		32.8		14.2		14.4		10.1		18.7		12.5		13.5
Credit Suisse First Boston
Interest rate & credit spread		36.6		80.8		57.6		39.5		30.7		61.9		44.8		58.2
Foreign exchange rate		12.1		30.1		20.2		19.7		8.0		20.9		13.3		15.9
Equity		21.5		48.1		32.4		43.9		22.0		51.5		32.6		23.6
Commodity		0.0		1.0		0.6		0.5		0.3		1.3		0.6		0.9
Diversification benefit		–	2)	–	2)	(44.5)		(39.9)		–	2)	–	2)	(38.8)		(40.3)
Total		46.5		90.0		66.3		63.7		38.1		66.3		52.5		58.3
Credit Suisse Group 3)
Interest rate & credit spread		39.8		73.9		59.0		39.8		36.9		58.9		46.8		58.9
Foreign exchange rate		12.7		20.6		17.6		19.7		12.4		16.8		14.1		16.8
Equity		31.1		47.7		40.8		47.7		24.9		47.3		34.1		24.9
Commodity		0.6		1.3		0.8		1.3		0.6		0.9		0.8		0.8
Diversification benefit		–	2)	–	2)	(39.4)		(42.6)		–	2)	–	2)	(43.3)		(45.3)
Total		65.9		91.1		78.8		65.9		45.5		56.1		52.5		56.1
1) Represents 10-day VaR scaled to a 1-day holding period.
2) As the minimum and maximum occur on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit.
3) The VaR estimates for Credit Suisse Group are performed on a monthly basis and the VaR statistics for Credit Suisse Group therefore refer to monthly numbers. The consolidated VaR estimates for Credit Suisse Group are net of diversification benefits between Credit Suisse First Boston and Credit Suisse Financial Services.

CSFB Backtesting




CSFB Trading Revenue Distribution, 1st Quarter 2004

Loans outstanding
		Credit Suisse				Credit Suisse				Credit Suisse
		Financial Services				First Boston				Group
in CHF m		31.03.04		31.12.03		31.03.04		31.12.03		31.03.04		31.12.03
Consumer loans:
Mortgages		70,505		68,083		0		0		70,505		68,083
Loans collateralized by securities		13,563		14,379		0		0		13,563		14,379
Other		3,261		2,339		992		1,172		4,253		3,511
Consumer loans		87,329		84,801		992		1,172		88,321		85,973
Corporate loans:
Real estate		30,480		30,174		318		188		30,798		30,362
Commercial & industrial loans		35,579		34,097		14,105		13,859		49,684		47,956
Loans to financial institutions		9,272		8,374		4,562		4,473		13,834		12,847
Governments and public institutions		3,444		3,429		1,172		1,152		4,616		4,581
Corporate loans		78,775		76,074		20,157		19,672		98,932		95,746
Loans, gross		166,104		160,875		21,149		20,844		187,253		181,719
(Unearned income)/deferred expenses, net		129		131		(38)		(25)		91		106
Allowance for loan losses		(2,990)		(3,263)		(1,199)		(1,383)		(4,189)		(4,646)
Total loans, net		163,243		157,743		19,912		19,436		183,155		177,179
This disclosure presents the lending exposure of the Group from a risk management perspective. This presentation differs from other disclosures in this document.

Total loan portfolio exposure and allowances and provisions for credit risk
		Credit Suisse				Credit Suisse				Credit Suisse
		Financial Services				First Boston				Group
in CHF m		31.03.04		31.12.03		31.03.04		31.12.03		31.03.04		31.12.03
Non-performing loans		1,667		1,981		970		996		2,637		2,977
Non-interest earning loans		1,506		1,523		70		246		1,575		1,769
Total non-performing loans		3,173		3,504		1,040		1,242		4,212		4,746
Restructured loans		14		27		239		256		253		283
Potential problem loans		1,611		1,817		354		361		1,965		2,178
Total other impaired loans		1,625		1,844		593		617		2,218		2,461
Total impaired loans		4,798		5,348		1,633		1,859		6,430		7,207
Loans, gross		166,104		160,875		21,149		20,844		187,253		181,719
(Unearned income)/deferred expenses, net		129		131		(38)		(25)		91		106
Allowance for loan losses		(2,990)		(3,263)		(1,199)		(1,383)		(4,189)		(4,646)
Total loans, net		163,243		157,743		19,912		19,436		183,155		177,179
Valuation allowances as % of
Total non-performing loans		94.2%		93.1%		115.3%		111.4%		99.5%		97.9%
Total impaired loans		62.3%		61.0%		73.4%		74.4%		65.1%		64.5%

Allowance for loan losses
		Credit Suisse						Credit Suisse						Credit Suisse
		Financial Services						First Boston						Group
in CHF m		1Q2004		4Q2003		1Q2003		1Q2004		4Q2003		1Q2003		1Q2004		4Q2003		1Q2003
Balance beginning of period		3,263		3,190		4,159		1,383		2,654		3,268		4,646		5,844		7,427
New provisions		127		438		150		38		340		163		165		777		313
Releases of provisions		(64)		(194)		(88)		(67)		(392)		(28)		(131)		(586)		(116)
Net additions charged to income statement		63		244		62		(29)		(52)		135		34		191		197
Gross write-offs		(380)		(169)		(347)		(210)		(1,158)		(356)		(590)		(1,328)		(703)
Recoveries		6		2		8		5		1		0		11		3		7
Net write-offs		(374)		(167)		(339)		(205)		(1,157)		(356)		(579)		(1,325)		(696)
Allowances acquired		0		1		(1)		0		25		0		0		26		(1)
Provisions for interest		10		5		12		13		52		30		24		57		42
Foreign currency translation impact and other adjustments, net		28		(10)		(1)		37		(139)		(94)		64		(147)		(94)
Balance end of period		2,990		3,263		3,892		1,199		1,383		2,983		4,189		4,646		6,875

REVIEW OF BUSINESS UNITS | CREDIT SUISSE FINANCIAL SERVICES










Credit Suisse Financial Services recorded net income of CHF 1.1 billion in the first quarter of 2004, reflecting higher revenues and efficiency improvements. All four segments reported very strong net income – particularly Private Banking, which achieved high revenue growth with a significant increase in commissions. The Private Banking segment also recorded a very high annualized net new asset growth rate of 8.4%.


Credit Suisse Financial Services recorded net income of CHF 1.1 billion in the first quarter of 2004, up 99% versus the fourth quarter of 2003 and up more than seven-fold compared to the corresponding period of the previous year. The increase was primarily attributable to strong growth in revenues. Furthermore, all of Credit Suisse Financial Services’ businesses continued to focus on improving the efficiency of their processes.

All four segments reported strong net income. Private Banking reported net income of CHF 681 million, driven mainly by high revenue growth. Corporate & Retail Banking recorded net income of CHF 189 million, based on solid underlying revenues, low credit provisions and low operating expenses. Life & Pensions’ net income of CHF 139 million was driven by high investment income and the continued containment of administration expenses. On March 24, 2004, the Swiss government passed legislation that provides for a mandatory participation in profits to policyholders in respect of the regulated employee benefit business in Switzerland. Initial provisions reflecting this legislation were recorded in the first quarter of 2004 and amounted to CHF 91 million after tax. Non-Life reported net income of CHF 103 million resulting from high investment income and further improvements in cost efficiency.

At the end of the first quarter of 2004, Credit Suisse Financial Services announced structural changes in its banking segments that will bring Private Banking and Corporate & Retail Banking together under a joint management structure. By simplifying and increasing cooperation between front office areas, the new combined Banking division will be able to enhance client service. The Banking division will continue to report its financial results according to two separate segments.

Private Banking
In the first quarter of 2004, Private Banking reported net income of CHF 681 million, up CHF 285 million, or 72%, versus the first quarter of 2003. The segment achieved strong revenue growth and very high growth in net new assets and assets under management. In a good market environment, Private Banking demonstrated the strength of its franchise, its leading expertise in product innovation and the effectiveness of its open-architecture product platform.

Net revenues amounted to CHF 1.9 billion in the first quarter of 2004, representing an increase of 30% versus the first quarter of 2003 and an increase of 7% versus the fourth quarter of 2003. The fourth quarter had been positively impacted by divestiture gains and by gains on interest rate derivatives used for risk management purposes that do not qualify for hedge accounting. Commissions and fees were up 30% versus the first quarter of 2003. This increase was driven by a higher average asset base, significantly better brokerage revenues, reflecting increased client activity, and high product issuing fees. Trading revenues were negatively impacted in the amount of CHF 7 million due to a change in the fair value of interest rate derivatives, whereas the previous quarter and the first quarter of 2003 included a positive impact of CHF 76 million and CHF 26 million, respectively.

Total operating expenses amounted to CHF 1.1 billion in the first quarter of 2004, up 12% compared to the first quarter of 2003, driven by higher incentive-related compensation accruals, reflecting the better result, as well as by higher commission expenses in line with increased brokerage activity, partially offset by further efficiency improvements. Compared to the fourth quarter of 2003, operating expenses decreased 1%.

The cost/income ratio improved to 55.3% for the first quarter of 2004, compared with 64.2% in the first quarter of 2003.

Private Banking’s gross margin stood at a high 146.3 basis points in the first quarter of 2004, up 4.6 basis points compared to the previous quarter and up 17.0 basis points compared to the first quarter of 2003.

Private Banking succeeded in achieving its goal of generating a very good net new asset inflow. Net new assets in the first quarter of 2004 amounted to CHF 10.8 billion, representing a very high annualized growth rate of 8.4%. This reflects broad asset inflows from all markets. Assets under management were CHF 540.6 billion at the end of the first quarter of 2004, up CHF 29.3 billion, or 5.7%, compared to year-end 2003.

Corporate & Retail Banking
Corporate & Retail Banking recorded net income of CHF 189 million in the first quarter of 2004, up CHF 34 million, or 22%, versus the corresponding period of 2003. This good result reflects Corporate & Retail Banking’s continuing efforts to further increase profitability and was driven by solid underlying revenues, low credit provisions and low operating expenses.

Net revenues in the reporting period amounted to CHF 787 million, practically unchanged versus the first quarter of 2003, but down 5% versus the fourth quarter of 2003. The quarter-on-quarter decrease was due to the fair value change in interest rate derivatives used for risk management purposes as mentioned on page 13. The resulting negative impact of CHF 31 million in the first quarter of 2004 was recorded in trading revenue, whereas changes in fair value of these derivatives led to a positive impact of CHF 53 million in the previous quarter, and of CHF 32 million in the first quarter of 2003. The decrease was partially offset by higher commissions and fees, which were up 20% versus the first quarter of 2003 and up 7% versus the fourth quarter of 2003, driven by higher transaction revenues.

Provisions for credit losses were low at CHF 48 million, compared to CHF 225 million in the fourth quarter of 2003, due to a favorable credit environment. Total impaired loans declined CHF 376 million to CHF 4.5 billion as of March 31, 2004, compared to the end of the previous quarter.

In the first quarter of 2004, total operating expenses decreased CHF 26 million, or 5%, versus the corresponding period of 2003, due to further efficiency gains partly offset by higher incentive-related compensation accruals. Total operating expenses were down CHF 58 million, or 11%, compared to the fourth quarter of 2003, additionally reflecting seasonality.

The return on average allocated capital increased to 15.1% in the first quarter of 2004, compared to 12.5% in the first quarter of 2003, and 4.0% in the previous quarter. Corporate & Retail Banking further improved its cost/income ratio to 62.8%, down 4.0 percentage points compared to the fourth quarter of 2003, and down 4.4 percentage points compared to the first quarter of 2003.

Life & Pensions
In the first quarter of 2004, Life & Pensions reported net income of CHF 139 million, compared to a net loss of CHF 517 million in the first quarter of 2003. This strong quarterly result was positively impacted by a high level of investment income and the continued containment of administration expenses, and included a charge due to the introduction of the new legislation for the Swiss employee benefit business.

This significant change compared to the corresponding quarter of 2003 was primarily driven by the impact on the first quarter of 2003 of the cumulative effect of a change in accounting for provisions for policyholder guarantees and annuities, which were required as a result of new accounting rules. These provisions primarily impacted deferred annuities for the regulated Swiss employee benefit business. Life & Pensions recorded an initial provision of CHF 529 million, net of tax, in the first quarter of 2003 to reflect the cumulative effect of this accounting change.

Total business volume, which includes deposits from policyholders and gross premiums written, declined 2% compared to the corresponding quarter of 2003. Deposit business increased CHF 215 million, or 18%, versus the first quarter of 2003, reflecting Life & Pensions’ strategy of introducing investment-type products such as unit-linked policies. Gross premiums written were down CHF 341 million, or 7%, to CHF 4.6 billion, reflecting lower volumes in group life and individual business. Net new assets amounted to CHF 2.1 billion in the first quarter of 2004, compared to CHF 2.2 billion in the first quarter of 2003.

Compared to the first quarter of the previous year, net investment income increased by CHF 310 million to CHF 1.3 billion. This high level of net investment income in the first quarter of 2004 primarily reflected net realized gains, resulting from active portfolio management and the effect of modest losses on equity investments, compared to the corresponding quarter of the previous year. In the first quarter of 2004, the net investment return backing traditional life policies amounted to 5.6%, compared to 4.5% in the first quarter of 2003. Current income in the first quarter of 2004 was 3.8%, and realized gains amounted to 1.8%.

In the first quarter of 2004, insurance underwriting and acquisition expenses were almost flat, whereas administration expenses were down CHF 65 million compared to the first quarter of 2003. The expense ratio improved by 0.9 percentage points to 6.6%.

On March 24, 2004, the Swiss government passed legislation that provides for a mandatory participation in profits to policyholders in respect of the regulated employee benefit business in Switzerland. In addition to the ongoing allocation to policyholders in respect of this business, initial provisions reflecting this legislation were recorded in the first quarter of 2004 and amounted to CHF 117 million, with an after-tax impact of CHF 91 million.

Non-Life
Non-Life reported net income of CHF 103 million in the first quarter of 2004, compared to CHF 92 million for the corresponding period of the previous year. This result reflects high net investment income and further improvements in cost efficiency, partly offset by provisions related to the divestiture of Non-Life’s French subsidiary and the impact of an unusually high level of reported large claims.

In the first quarter of 2004, net premiums earned increased by CHF 298 million, or 12%, to CHF 2.8 billion, compared to the corresponding period of the previous year. This growth resulted mainly from tariff increases across most markets and a CHF 133 million increase in insurance coverage in the German health business, which is also reflected in higher claims reserves.

In the first quarter of 2004, Non-Life recorded a significant increase in net investment income of CHF 126 million to CHF 318 million versus the first quarter of 2003. This high level of investment income reflects higher net realized gains in the first quarter of 2004, resulting from both active portfolio management and a low level of impairments and losses on equity investments, compared to the corresponding quarter of the previous year. In the first quarter of 2004, the total investment return was 5.1%, compared to 3.7% in the first quarter of 2003. Current income was 3.5%, and realized gains were 1.6%.

Claims were up CHF 301 million, or 16%, in the first quarter of 2004 versus the corresponding period of the previous year, due to the impact of an unusually high level of reported large claims and the above-mentioned CHF 133 million increase in reserves due to the higher insurance coverage in the German health business.

The combined ratio improved by 1.0 percentage points compared with the first quarter of 2003, to 100.4%. The claims ratio increased 2.8 percentage points to 76.8% in the first quarter of 2004 versus the corresponding period of the previous year.

The expense ratio decreased 3.8 percentage points to 23.6% in the first quarter of 2004, compared to the corresponding period of the previous year, as insurance underwriting and acquisition as well as administration expenses decreased slightly, despite higher premium volumes.

Non-Life reported a loss from discontinued operations of CHF 63 million net of tax in the first quarter of 2004. Included in this charge are provisions related to the divestiture of Non-Life’s French subsidiary Rhodia Assurances S.A. in the first quarter of 2004 in the amount of CHF 33 million before taxes. The sale of Rhodia Assurances S.A. is expected to be completed in the third quarter of 2004, subject to regulatory approval.

Credit Suisse Financial Services
								Change		Change
								in % from		in % from
in CHF m, except where indicated		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Net revenues		11,888		9,194		10,980		29		8
Total benefits, claims and credit losses		7,647		6,676		7,425		15		3
Total operating expenses		2,761		3,015		2,724		(8)		1
Net income		1,112		558		126		99		–
Cost/income ratio banking segments		57.5%		61.8%		65.2%		–		–
Return on average allocated capital		28.4%		13.7%		2.7%		–		–
Average allocated capital		15,804		15,557		18,628		2		(15)

						Change
						in % from
		31.03.04		31.12.03		31.12.03
Assets under management in CHF bn		739.4		704.1		5
Number of employees (full-time equivalents)		40,531		41,195		(2)

Private Banking income statement
								Change		Change
								in % from		in % from
in CHF m		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Net interest income		411		404		345		2		19
Commissions and fees		1,292		1,024		996		26		30
Trading revenues including realized gains/(losses) from investment securities, net		181		250		127		(28)		43
Other revenues		56		140		19		(60)		195
Total noninterest revenues		1,529		1,414		1,142		8		34
Net revenues		1,940		1,818		1,487		7		30
Provision for credit losses		6		(7)		11		–		(45)
Compensation and benefits		582		530		495		10		18
Other expenses		493		541		459		(9)		7
Restructuring charges		(2)		11		0		–		–
Total operating expenses		1,073		1,082		954		(1)		12
Income from continuing operations before taxes, minority interests, extraordinary items and cumulative effect of accounting changes		861		743		522		16		65
Income tax expense		175		113		126		55		39
Minority interests, net of tax		5		4		3		25		67
Income from continuing operations before extraordinary items and cumulative effect of accounting changes		681		626		393		9		73
Income/(loss) from discontinued operations, net of tax		0		2		(1)		–		–
Extraordinary items, net of tax		0		2		4		–		–
Cumulative effect of accounting changes, net of tax		0		(1)		0		–		–
Net income		681		629		396		8		72

Private Banking key information
		1Q2004		4Q2003		1Q2003
Cost/income ratio		55.3%		59.5%		64.2%
Gross margin		146.3 bp		141.7 bp		129.3 bp
of which asset-driven		83.6 bp		76.1 bp		81.1 bp
of which transaction-driven		54.4 bp		51.4 bp		41.8 bp
of which other		8.3 bp		14.2 bp		6.4 bp
Net margin		51.8 bp		49.3 bp		34.8 bp
Net new assets in CHF bn		10.8		4.3		1.5
Average allocated capital in CHF m		3,228		3,157		2,715

						Change
						in % from
		31.03.04		31.12.03		31.12.03
Assets under management in CHF bn		540.6		511.3		6
Total assets in CHF bn		197.8		174.9		13
Number of employees (full-time equivalents)		11,784		11,850		(1)

Corporate & Retail Banking income statement
								Change		Change
								in % from		in % from
in CHF m		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Net interest income		536		579		550		(7)		(3)
Commissions and fees		208		194		173		7		20
Trading revenues including realized gains/(losses) from investment securities, net		23		41		27		(44)		(15)
Other revenues		20		12		24		67		(17)
Total noninterest revenues		251		247		224		2		12
Net revenues		787		826		774		(5)		2
Provision for credit losses		48		225		50		(79)		(4)
Compensation and benefits		275		259		281		6		(2)
Other expenses		219		293		239		(25)		(8)
Total operating expenses		494		552		520		(11)		(5)
Income from continuing operations before taxes and cumulative effect of accounting changes		245		49		204		400		20
Income tax expense		56		0		49		–		14
Income from continuing operations before cumulative effect of accounting changes		189		49		155		286		22
Cumulative effect of accounting changes, net of tax		0		1		0		–		–
Net income		189		50		155		278		22

Corporate & Retail Banking key information
		1Q2004		4Q2003		1Q2003
Cost/income ratio		62.8%		66.8%		67.2%
Net new assets in CHF bn		0.9		0.3		0.2
Return on average allocated capital		15.1%		4.0%		12.5%
Average allocated capital in CHF m		5,001		5,004		4,970

						Change
						in % from
		31.03.04		31.12.03		31.12.03
Assets under management in CHF bn		54.4		53.6		1
Total assets in CHF bn		101.5		98.5		3
Mortgages in CHF bn		60.8		59.8		2
Other loans in CHF bn		25.9		25.1		3
Number of branches		214		214		–
Number of employees (full-time equivalents)		8,265		8,479		(3)

Life & Pensions income statement
								Change		Change
								in % from		in % from
in CHF m		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Gross premiums written		4,641		2,440		4,982		90		(7)
Net premiums earned		4,612		2,424		4,950		90		(7)
Net investment income		1,311		1,057		1,001		24		31
Other revenues including fees, net revenues from deposit business general and separate account		113		126		96		(10)		18
Net revenues		6,036		3,607		6,047		67		0
Policyholder benefits incurred		4,959		2,779		5,443		78		(9)
Dividends to policyholders incurred		421		1,374		23		(69)		–
Provision for credit losses		(1)		10		(4)		–		(75)
Total benefits, dividends and credit losses		5,379		4,163		5,462		29		(2)
Insurance underwriting and acquisition expenses		164		313		159		(48)		3
Administration expenses		237		236		302		0		(22)
Other expenses		59		119		53		(50)		11
Restructuring charges		2		3		13		(33)		(85)
Total operating expenses		462		671		527		(31)		(12)
Income/(loss) from continuing operations before taxes, minority interests and cumulative effect of accounting changes		195		(1,227)		58		–		236
Income tax expense/(benefit)		50		(1,031)		88		–		(43)
Minority interests, net of tax		7		(26)		(4)		–		–
Income/(loss) from continuing operations before cumulative effect of accounting changes		138		(170)		(26)		–		–
Income/(loss) from discontinued operations, net of tax		0		(5)		38		–		–
Cumulative effect of accounting changes, net of tax		1		(1)		(529)		–		–
Net income/(loss)		139		(176)		(517)		–		–

Life & Pensions key information
in CHF m, except where indicated		1Q2004		4Q2003		1Q2003
Total business volume 1)		6,067		3,987		6,193
Expense ratio 2)		6.6%		13.8%		7.5%
Return on average allocated capital		10.9%		(15.3%)		(31.5%)
Average allocated capital in CHF m 3)		5,365		5,292		6,610
1) Includes gross premiums written and policyholder deposits.
2) Insurance underwriting, acquisition and administration expenses as a percentage of total business volume.
3) In the first quarter of 2004, the allocated capital methodology was revised to reflect the new capital requirements of Winterthur defined by the Swiss regulator in 2003. Allocated capital reflects the amount of capital required to meet Credit Suisse Group's internal requirements (i.e. the market requirement based on a multiple of minimum regulatory capital as well as the economic risk capital requirement).

						Change
						in % from
		31.03.04		31.12.03		31.12.03
Assets under management (discretionary) in CHF bn 1)		118.6		113.8		4
Technical provisions in CHF bn		110.0		104.7		5
Number of employees (full-time equivalents)		7,038		7,193		(2)
1) Based on savings-related provisions for policyholders plus off-balance sheet assets.

Life & Pensions investment income
								Change		Change
								in % from		in % from
in CHF m		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Net current investment income		1,002		966		952		4		5
of which backing traditional life policies		934		916		915		2		2
of which backing unit-linked liabilities general    account		68		50		37		36		84
Realized gains/(losses), net		579		606		(31)		(4)		–
of which backing traditional life policies		447		193		120		132		273
of which backing unit-linked liabilities general    account		132		413		(151)		(68)		–
Net investment income before credited investment income to deposit business general account		1,581		1,572		921		1		72
Credited investment income to deposit business general account		(270)		(515)		80		(48)		–
Net investment income		1,311		1,057		1,001		24		31
Total investment income separate account		9		105		(71)		(91)		–

Life & Pensions investment return
in %, except where indicated		1Q2004		4Q2003		1Q2003
Net current investment return backing traditional life policies		3.8%		3.8%		4.0%
Realized gains/(losses) backing traditional life policies		1.8%		0.8%		0.5%
Net investment return backing traditional life policies		5.6%		4.6%		4.5%
Average assets backing traditional life policies in CHF bn		98.7		96.6		92.2

Non-Life income statement
								Change		Change
								in % from		in % from
in CHF m		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Gross premiums written		5,471		1,909		4,967		187		10
Reinsurance ceded		(251)		(38)		(284)		–		(12)
Change in provisions for unearned premiums		(2,415)		848		(2,176)		–		11
Net premiums earned		2,805		2,719		2,507		3		12
Net investment income		318		263		192		21		66
Other revenues including fees		2		(39)		(27)		–		–
Net revenues		3,125		2,943		2,672		6		17
Claims and annuities incurred		2,155		1,988		1,854		8		16
Dividends to policyholders incurred		59		298		48		(80)		23
Provision for credit losses		0		9		0		–		–
Total claims, dividends and credit losses		2,214		2,295		1,902		(4)		16
Insurance underwriting and acquisition expenses		366		415		371		(12)		(1)
Administration expenses		295		261		315		13		(6)
Other expenses		67		7		26		–		158
Restructuring charges		4		27		11		(85)		(64)
Total operating expenses		732		710		723		3		1
Income/(loss) from continuing operations before taxes, minority interests and cumulative effect of accounting changes		179		(62)		47		–		281
Income tax expense/(benefit)		14		(147)		(33)		–		–
Minority interests, net of tax		(1)		(5)		(1)		(80)		0
Income from continuing operations before cumulative effect of accounting changes		166		90		81		84		105
Income/(loss) from discontinued operations, net of tax		(63)		(32)		11		97		–
Cumulative effect of accounting changes, net of tax		0		(3)		0		–		–
Net income		103		55		92		87		12

Non-Life key information
in %, except where indicated		1Q2004		4Q2003		1Q2003
Combined ratio		100.4%		97.9%		101.4%
Expense ratio		23.6%		24.8%		27.4%
Claims ratio		76.8%		73.1%		74.0%
Return on average allocated capital		18.5%		9.5%		8.4%
Average allocated capital in CHF m 1)		2,211		2,104		4,333
1) In the first quarter of 2004, the allocated capital methodology was revised to reflect the new capital requirements of Winterthur defined by the Swiss regulator in 2003. Allocated capital reflects the amount of capital required to meet Credit Suisse Group's internal requirements (i.e. the market requirement based on a multiple of minimum regulatory capital as well as the economic risk capital requirement).

						Change
						in % from
		31.03.04		31.12.03		31.12.03
Assets under management (discretionary) in CHF bn		25.8		25.4		2
Technical provisions in CHF bn		27.0		24.1		12
Number of employees (full-time equivalents)		13,444		13,673		(2)

Non-Life investment income
								Change		Change
								in % from		in % from
in CHF m		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Net current investment income		215		207		200		4		8
Realized gains/(losses), net		103		56		(8)		84		–
Net investment income		318		263		192		21		66

Non-Life investment return
in %, except where indicated		1Q2004		4Q2003		1Q2003
Net current investment return		3.5%		3.3%		3.8%
Realized gains/(losses), net		1.6%		0.9%		(0.1%)
Net investment return		5.1%		4.2%		3.7%
Average assets in CHF bn		24.9		25.0		21.0

Investment portfolio (Life & Pensions and Non-Life)
						Gross		Gross
				Amortized		unrealized		unrealized
in CHF m, as of March 31, 2004		Book value		cost		gains		losses		Fair value
Held-to-maturity debt securities		10,164		10,164		18		30		10,152
Available-for-sale debt securities		73,161		70,322		3,189		350		73,161
Available-for-sale equity securities		6,049		5,496		639		86		6,049
Trading debt securities		1,143		–		–		–		1,143
Trading equity securities		9,735		–		–		–		9,735
Mortgage loans		11,289		–		–		–		11,289
Loans		4,721		–		–		–		4,721
Real estate		8,463		–		–		–		8,797
Other investments		3,401		–		–		–		3,401
Investments, general account		128,126		–		–		–		128,448
Investments, separate account		4,081		–		–		–		4,081
Total investments		132,207		–		–		–		132,529
of which Life & Pensions		109,455		–		–		–		109,552
of which Non-Life		22,752		–		–		–		22,977
in CHF m, as of December 31, 2003
Held-to-maturity debt securities		10,186		10,186		0		165		10,021
Available-for-sale debt securities		71,324		69,546		2,671		893		71,324
Available-for-sale equity securities		5,122		4,622		553		53		5,122
Trading debt securities		1,071		–		–		–		1,071
Trading equity securities		8,591		–		–		–		8,591
Mortgage loans		11,054		–		–		–		11,054
Loans		4,523		–		–		–		4,523
Real estate		8,388		–		–		–		8,682
Other investments		3,733		–		–		–		3,733
Investments, general account		123,992		–		–		–		124,121
Investments, separate account		3,991		–		–		–		3,991
Total investments		127,983		–		–		–		128,112
of which Life & Pensions		105,018		–		–		–		104,923
of which Non-Life		22,965		–		–		–		23,189
Trading securities includes CHF 10,654 m (31.12.03: CHF 9,337 m) held to back unit-linked liabilities in the general account.

REVIEW OF BUSINESS UNITS | CREDIT SUISSE FIRST BOSTON






Credit Suisse First Boston reported net income of CHF 759 million in the first quarter of 2004, up CHF 161 million, or 27%, compared with the first quarter of 2003. This performance demonstrated the business unit’s operating leverage, as progress in revenue growth and controlled risk-taking were underpinned by continued cost controls. Credit Suisse First Boston’s revenues increased 15% to CHF 4.9 billion in the first quarter of 2004 compared to the first quarter of 2003, reflecting improvements across most revenue categories and geographic areas. Return on average allocated capital increased 9.3 percentage points to 28.1% and the pre-tax margin increased 8.1 percentage points to 23.9% compared with the first quarter of 2003.


Credit Suisse First Boston reported net income of CHF 759 million in the first quarter of 2004, up CHF 161 million, or 27% (39% on a US dollar basis), compared with the first quarter of 2003.

Institutional Securities first quarter 2004 net income increased CHF 112 million from the first quarter of 2003, mostly due to significantly improved underwriting and trading revenues, offset by lower advisory fee revenues. Wealth & Asset Management’s net income increased CHF 49 million in the first quarter of 2004 compared with the first quarter of 2003, primarily as a result of improved revenues from Credit Suisse Asset Management. Wealth & Asset Management’s assets under management as of March 31, 2004 increased 4.4%, or CHF 20.8 billion, to CHF 495.3 billion from December 31, 2003.

In 2004, Credit Suisse First Boston reorganized its operations by transferring the private equity and private fund group activities previously in the Institutional Securities segment to the CSFB Financial Services segment, which was renamed Wealth & Asset Management. In the first quarter of 2004, Credit Suisse First Boston announced the creation of the Alternative Capital division of Credit Suisse Asset Management within the Wealth & Asset Management segment. The Alternative Capital division brings together Credit Suisse First Boston’s alternative investment activities, including the private equity and private fund groups.

Credit Suisse First Boston’s effective tax rate for the first quarter of 2004 was 25.4%. Excluding CHF 108 million of non-taxable income arising from private equity investments that are required to be consolidated under new accounting rules (FASB Interpretation No. 46 (Revised), or FIN 46R) effective January 1, 2004, the effective tax rate was 28.0%.

Institutional Securities
Institutional Securities’ first quarter 2004 net income increased CHF 112 million to CHF 623 million compared with the first quarter of 2003 due to a 12% revenue increase (23% on a US dollar basis), a decline in credit provisions and lower non-compensation costs. In a good market environment, Institutional Securities continued its focus on client-related business and increased opportunistic risk-taking. The increase in revenues was primarily due to higher net interest income from the trading businesses, improved commissions and fee revenues, reflecting increased customer flow business, while other revenues reflected higher valuations on legacy assets.

During the first quarter of 2004, recoveries generated a net release of provisions for credit losses. Total impaired loans decreased to CHF 1.6 billion as of March 31, 2004, and the ratio of valuation allowances to total impaired loans remained practically stable compared to December 31, 2003.

Operating expenses of CHF 3.1 billion increased 11%, or CHF 296 million, from the first quarter of 2003. Compensation and benefits expenses increased 22% (34% on a US dollar basis), or CHF 412 million, reflecting the increase in revenues, while non-compensation expenses decreased 12%, primarily reflecting the translation into Swiss francs from the weakening US dollar and cost controls. In US dollars, non-compensation expenses were 4% lower than the first quarter of 2003.

Total investment banking revenues include debt underwriting, equity underwriting and advisory and other fees. First quarter 2004 investment banking revenues increased CHF 27 million, or 3%, to CHF 840 million compared to the first quarter of 2003. First quarter 2004 debt underwriting revenue of CHF 397 million increased 16% compared to the first quarter of 2003 largely as a result of significantly increased asset and real estate securitizations, which benefited from continued low interest rates. Leveraged finance revenues also increased as Credit Suisse First Boston continued to be ranked first in global high-yield new issuances for the first quarter of 2004. Equity underwriting first quarter 2004 revenues more than doubled to CHF 243 million as improving global stock market conditions led to significant increases in new issuance volume compared to low volume levels in early 2003. First quarter 2004 advisory and other fees decreased 44% compared to the first quarter of 2003 due to a decline in Credit Suisse First Boston’s merger and acquisition market activity.

Total trading revenues include revenues from fixed income and equity trading, which benefited from improved market opportunities, higher client activity and increased risk-taking. Fixed income trading generated revenues of CHF 1.9 billion in the first quarter of 2004, a decrease of 3% compared to the first quarter of 2003, primarily as a result of the translation to Swiss francs from the weakening US dollar. In US dollar terms, fixed income trading results increased 6%, principally due to increased flow business in real estate securitizations and leveraged finance, both of which continued to be favorably impacted by a low interest rate environment. Fixed income trading for the first quarter of 2004 was up CHF 985 million, or 111%, from the fourth quarter of 2003 with an increase across many businesses, including proprietary trading.

Equity trading generated first quarter 2004 revenues of CHF 1.1 billion, an increase of CHF 380 million, or 52%, compared to the first quarter of 2003. The increased trading, primarily in the global cash, risk-taking and convertible trading businesses, was due to the beneficial impact of improving economic conditions on global equity markets compared with the weak equity environment during the first quarter of 2003. In the first quarter of 2004, equity trading increased CHF 446 million, or 68%, from the fourth quarter of 2003.

Compared to the first quarter of 2003, other revenues increased CHF 103 million, or 129%, to CHF 183 million in the first quarter of 2004 as a result of gains from further reducing legacy investments. The net exposure to legacy investments was reduced to CHF 2.0 billion, including unfunded commitments for the real estate portfolio, as of March 31, 2004, a decline of CHF 754 million from year-end 2003. Other revenues also reflect revenues of CHF 40 million related to certain legacy private equity funds, which were consolidated under FIN 46R as of January 1, 2004. The overall impact on net income was neutral due to offsetting minority interests.

Wealth & Asset Management
The Wealth & Asset Management segment is comprised of Credit Suisse Asset Management, Private Client Services and Other. Credit Suisse Asset Management includes the results of the private equity and private fund groups activities formerly reported in the Institutional Securities segment and includes results derived from fixed income, equity, balanced, money market, real estate and alternative investment asset management activities. Within Credit Suisse Asset Management, the Alternative Capital division brings together its alternative investment activities, including the private equity and private fund groups.

The segment reported net income of CHF 136 million for the first quarter of 2004. Compared to the first quarter of 2003, net income increased CHF 49 million, or 56%, principally due to an increase in fees and other revenues.

Wealth & Asset Management’s first quarter 2004 net revenues were CHF 866 million, an increase of 28%, or CHF 191 million, compared to the first quarter of 2003, and a decrease of CHF 90 million, or 9%, compared to the fourth quarter of 2003. The increase was due to higher asset management fees, performance gains – primarily unrealized on private equity investments – and the impact of consolidation of certain private equity funds under FIN 46R. First quarter 2004 revenues before investment related gains/losses (principally asset management and other fees) increased 11% compared with the first quarter of 2003. The increase was principally driven by higher asset management and performance fees in Credit Suisse Asset Management.

First quarter 2004 investment related gains, excluding results related to the consolidation of certain private equity funds, increased 84% compared to the first quarter of 2003 to CHF 127 million, primarily as a result of unrealized gains on private equity investments.

During the first quarter of 2004, Wealth & Asset Management reported an increase in revenue of CHF 68 million related to certain private equity funds that were consolidated under FIN 46R as of January 1, 2004. The impact on net income was neutral due to offsetting minority interests.

Operating expenses increased 3% to CHF 624 million in the first quarter of 2004 compared with the first quarter of 2003, but decreased CHF 299 million, or 32%, compared to the fourth quarter of 2003, which included an intangible asset impairment of CHF 270 million.

Wealth & Asset Management’s assets under management as of March 31, 2004 increased CHF 20.8 billion, or 4.4%, compared to December 31, 2003, principally due to positive market performance and foreign exchange gains on assets denominated in currencies other than the Swiss franc. During the first quarter of 2004, net new assets of CHF 0.6 billion were recorded.

Credit Suisse First Boston
								Change		Change
								in % from		in % from
in CHF m, except where indicated		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Net revenues		4,863		3,661		4,229		33		15
Total operating expenses		3,722		3,379		3,408		10		9
Net income		759		122		598		–		27
Cost/income ratio		76.5%		92.3%		80.6%		–		–
Compensation/revenue ratio		52.0%		47.2%		49.8%		–		–
Pre-tax margin		23.9%		9.0%		15.8%		–		–
Return on average allocated capital		28.1%		4.6%		18.8%		–		–
Average allocated capital		10,806		10,654		12,748		1		(15)

						Change
						in % from
		31.03.04		31.12.03		31.12.03
Assets under management in CHF bn		501.9		477.0		5
Number of employees (full-time equivalents)		18,453		18,341		1

Institutional Securities income statement
								Change		Change
								in % from		in % from
in CHF m		1Q2004		4Q2003		1Q2003		4Q2003		1Q2003
Net interest income		1,042		1,157		829		(10)		26
Investment banking		840		839		813		0		3
Commissions and fees		763		581		612		31		25
Trading revenues including realized gains/(losses) from investment securities, net		1,248		(42)		1,321		–		(6)
Other revenues		104		170		(21)		(39)		–
Total noninterest revenues		2,955		1,548		2,725		91		8
Net revenues		3,997		2,705		3,554		48		12
Provision for credit losses		(21)		(47)		154		(55)		–
Compensation and benefits		2,251		1,443		1,839		56		22
Other expenses		847		1,013		963		(16)		(12)
Total operating expenses		3,098		2,456		2,802		26		11
Income from continuing operations before taxes, minority interests and cumulative effect of accounting changes		920		296		598		211		54
Income tax expense		257		193		87		33		195
Minority interests, net of tax		40		0		0		–		–
Income from continuing operations before cumulative effect of accounting changes		623		103		511		–		22
Cumulative effect of accounting changes, net of tax		0		(7)		0		–		–