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Media Release
February 15, 2006

Change in Accounting Treatment of Share-Based Compensation Awards
Following recent guidance from and discussions with US Securities and Exchange Commission (SEC) staff through February 10, 2006, regarding the appropriate period over which to expense share-based compensation awards that have a non-competition provision with scheduled vesting beyond an employee’s eligibility for early retirement, Credit Suisse Group changed its accounting treatment of certain share-based compensation awards. As a result, the Group recorded a non-cash charge in the Corporate Center in the fourth quarter of 2005 for certain share-based compensation awards granted in 2005. This resulted in a CHF 630 million increase in banking compensation and benefits and a CHF 421 million reduction in net income for the fourth quarter and full year 2005. This non-cash charge represents an acceleration of compensation expenses that would otherwise have been reflected in future years.

Share Buyback Program
In connection with its share buyback program, as of February 10, 2006, the Group had repurchased 26,152,200 shares in the amount of CHF 1.4 billion.

Dividend Proposal
The Board of Directors of Credit Suisse Group will propose a dividend of CHF 2.00 per share for the financial year 2005 to the Annual General Meeting on April 28, 2006. This compares to a dividend of CHF 1.50 per share for the financial year 2004. If approved by the shareholders at the Annual General Meeting, the dividend will be paid on May 4, 2006.

Outlook
Credit Suisse Group's current outlook for global economic growth and the capital markets is positive. It believes that growth will continue to be robust and that inflation will remain under control, resulting in only moderate rises in interest rates. Provided there are no major adverse geopolitical developments or external events, the Group expects the equity markets to outperform the bond markets, with the US dollar remaining well supported. While oil prices may reach new highs in the early part of 2006, it anticipates that they may trend lower later in the year.

Information
Credit Suisse Media Relations, telephone +41 844 33 88 44, media.relations@credit-suisse.com Credit Suisse Investor Relations, telephone +41 44 333 71 49, investor.relations@credit-suisse.com

For additional information on Credit Suisse Group’s fourth-quarter and full-year 2005 results, please refer to the Group’s Quarterly Report Q4 2005, as well as the Group’s slide presentation for analysts and the press, which are available on the Internet at: www.credit-suisse.com/results

Credit Suisse Group
Credit Suisse Group is a leading global financial services company headquartered in Zurich. Credit Suisse, the banking business of Credit Suisse Group, provides its clients with investment banking, private banking and asset management services worldwide. Credit Suisse offers advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as retail clients in Switzerland. Credit Suisse Group also includes Winterthur, a Swiss general insurer with a focus on international business activities. Credit Suisse Group is active in over 50 countries and employs approximately 63,000 people. Credit Suisse Group’s registered shares (CSGN) are listed in Switzerland and, in the form of American Depositary Shares (CSR), in New York. Further information about Credit Suisse Group and Credit Suisse can be found at www.credit-suisse.com. Further information about Winterthur can be found at www.winterthur.com.

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Media Release
February 15, 2006

 

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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Media Release
February 15, 2006

 

Presentation of the fourth-quarter and full-year 2005 results
Analyst and Media Conference
•	February 15, 2006, 10.00 a.m. CET / 9.00 a.m. GMT / 4.00 a.m. EST Credit Suisse Forum St. Peter, Zurich
•	Simultaneous interpreting: German – English, English – German
•	Internet
	Live broadcast at: www.credit-suisse.com/results Video playback available approximately 3 hours after the event
•	Telephone
	Live audio dial-in on +41 91 610 5600 (Europe), +44 207 107 0611 (UK) and +1 866 291 4166 (US); ask for “Credit Suisse Group quarterly results”. Please dial in 10-15 minutes before the start of the presentation
	Telephone replay available approximately 1 hour after the event on +41 91 612 4330 (Europe), +44 207 108 6233 (UK) and +1 866 416 2558 (US); conference ID English – 082#, conference ID German – 387#
•	Speakers
	Oswald J. Grübel, Chief Executive Officer of Credit Suisse Group Renato Fassbind, Chief Financial Officer of Credit Suisse Group

 

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Credit Suisse Group Letter to Shareholders 2005/Q4

Oswald J. Grübel Walter B. Kielholz Chief Executive Officer Chairman of the Board of Directors

Dear shareholders 2005 was a decisive year for Credit Suisse Group. We merged our two banking entities, Credit Suisse and Credit Suisse First Boston, to create an integrated global bank combining our core businesses of investment banking, private banking and asset management under a single brand. Our new, more efficient structure will provide a solid foundation for our future growth. While focusing on the implementation of our strategy in 2005, we also succeeded in growing our business. The Group’s banking business benefited from high levels of client activity during the year. Driven by stronger net revenues, Credit Suisse Group reported improved profitability in 2005. Net income for the full year totaled CHF 5,850 million, up 4% compared to 2004. This includes a non-cash charge in the Corporate Center in the fourth quarter of CHF 421 million after tax for certain share-based compensation awards as well as a CHF 624 million after-tax charge in Institutional Securities in the second quarter to increase the reserve for certain private litigation matters. The Group's return on equity was 15.4%, with a return on equity of 16.2% for the banking business and 11.7% for the insurance business. In the fourth quarter of 2005, the Group's net income totaled CHF 1,103 million, compared to net income of CHF 959 million in the fourth quarter of 2004. Our 2005 results, which are reported here on the basis of the Group’s organizational structure in 2005, show that we are making good progress in strengthening the underlying profitability of our business. We are convinced that the operational efficiency of our new integrated structure will help us to further enhance our profitability and returns for our shareholders in 2006. Fourth-quarter and full-year 2005 segment results In the following discussion, we briefly present our fourth-quarter and full-year 2005 results for our individual banking and insurance segments. Private Banking provides wealth management products and services to high-net-worth individuals in Switzerland and many other markets around the world. Private Banking reported record net income of CHF 2,647 million in 2005, up 7% from 2004, primarily reflecting strong revenues related to the increase in assets under management, higher trading revenues and an increase in brokerage volumes. While net revenues remained strong throughout 2005, an increase in operating expenses impacted profitability, particularly in the fourth quarter of 2005. Nonetheless, Private Banking reported net income of CHF 653 million in the fourth quarter, an increase of 6% over the same quarter of 2004. The rise in operating expenses was related mainly to ongoing strategic investments in growth opportunities as well as key business initiatives in growth markets in Asia and the Middle East in 2005. The opening of a new financial consultancy and advisory office in Mumbai in the fourth quarter of 2005 represented another milestone in the implementation of these initiatives. Private Banking reported excellent net new asset inflows across all regions in 2005, with record net new assets of CHF 42.7 billion, representing a growth rate of 7.9%. In the fourth quarter of 2005, Private Banking generated net new asset inflows of CHF 8.6 billion. Corporate & Retail Banking, which offers banking products and services to corporate and retail clients in Switzerland, reported net income of CHF 1,069 million in 2005 – a record result. This 19% increase in net income versus 2004 and the significantly improved return on average allocated capital of 20.7% were primarily attributable to net releases of provisions for credit losses of CHF 96 million in 2005 compared to net provisions of CHF 122 million in 2004. The result also reflects higher net revenues, partially offset by an increase in total operating expenses. In the fourth quarter of 2005, Corporate & Retail Banking recorded net income of CHF 254 million, slightly below the fourth quarter of 2004. The Corporate & Retail Banking segment represents a significant part of our Swiss operations. One of its growth areas in 2005 was the residential mortgages business, where we experienced an increase in volumes of approximately 9%. Even as we become a fully integrated global bank, our Swiss home market continues to make a major contribution to our results. Institutional Securities provides securities and investment banking services to institutional, corporate and government clients worldwide. During 2005, Institutional Securities focused on key client segments and its investment banking business benefited from increased levels of market activity. This resulted in higher revenues and further demonstrated its leadership position in key products such as IPOs, leveraged finance, emerging markets, prime brokerage and advanced execution services and reflected the increasing importance of our financial sponsor client base. Net income for 2005 totaled CHF 1,080 million. Excluding the CHF 624 million after-tax charge in the second quarter of 2005 to increase the reserve for certain private litigation matters, net income for the full year increased 30% to CHF 1,704 million. In the fourth quarter of 2005, Institutional Securities reported net income of CHF 336 million, up 25% from the fourth quarter of 2004. Significant growth in investment banking revenues during the quarter was offset by higher total operating expenses. In addition, net income was positively impacted by certain tax-related items that resulted in a CHF 132 million tax benefit in the fourth quarter of 2005. Looking at 2005, we can see clear improvements in the development of revenues. Equity underwriting revenues rose 25% versus 2004 – a strong result that was reflected in the league tables, with Credit Suisse ranking first in IPO market share globally and in the Americas, as well as in Europe, Middle East and Africa (EMEA). Debt underwriting revenues were up 8% in 2005 versus 2004. The leveraged finance franchise remained strong as corporate issuance continued to shift from the high-yield securities market to the syndicated loans market. In its advisory business, Credit Suisse increased its revenues by 23% over 2004, while improving its rankings to tenth in global announced mergers and acquisitions (up from eleventh in 2004) and to eighth in global completed mergers and acquisitions (up from ninth in 2004). Total trading revenues grew by 14% year-on-year, reflecting improved results in both fixed income and equity trading. These results highlight improvements in key growth areas including commercial and residential mortgage-backed securities and emerging markets. Wealth & Asset Management offers international asset management services – including a broad range of investment funds – to institutional and private investors. It also provides financial advisory services to wealthy individuals and corporate clients. In the Wealth & Asset Management segment, we reported strong net income of CHF 663 million for 2005. This 25% increase over the prior year was mainly attributable to higher investment-related gains in Alternative Capital. Net new assets grew by CHF 10.2 billion versus 2004 to CHF 12.5 billion. In the fourth quarter of 2005, Wealth & Asset Management benefited from higher revenues in all key business areas, with net income of CHF 182 million compared to CHF 63 million in the fourth quarter of 2004. Integration of the banking businesses January 1, 2006, marked the official launch of Credit Suisse’s integrated global structure. The integrated organization now operates under a single brand, providing us with a solid foundation from which we can better serve our clients and respond effectively to the challenges that our industry will face in the future. We expect to generate significant revenue growth and cost synergies in the coming years as a result of the integration. At our Investor Day presentation in December 2005, we stated that Credit Suisse Group aims to achieve total pre-tax benefits from revenue growth and cost synergies of CHF 1.3 billion in 2008, which would result in a positive net income benefit of around CHF 1.0 billion. As an integrated bank, we are committed to delivering our combined experience and expertise to our clients by drawing on our tradition of innovation across our businesses and regions. With global divisions dedicated to investment banking, private banking and asset management, we can now provide more comprehensive solutions for our clients, create synergies for revenue growth, increase efficiencies and grow shareholder value. Our regional structure enables us to leverage our resources and to develop cross-divisional strategies that span the Americas, Asia Pacific, Europe, Middle East and Africa (EMEA) and Switzerland. We will continue to develop strong bases in the home markets of our Investment Banking, Private Banking and Asset Management businesses. In the US – historically the home market of our Investment Banking business – we serve corporate and institutional clients and offer comprehensive advice and products for high-net-worth private clients. In Switzerland, Private Banking and our private client and business banking activities play a key role in the integrated Credit Suisse. Expanding into new markets is nevertheless an important focus of our growth strategy for Credit Suisse. In Investment Banking, our growth markets are in selected countries in Latin America, Europe and Asia. We will continue to develop our business, particularly in those countries where we have established expertise in a wide range of products. In Private Banking, we are also targeting Asia, the Middle East, Europe and Latin America, where we expect to see significant wealth creation in the coming years. To strengthen our local market presence, we are establishing hubs in important regional centers and expanding our local footprint in key strategic locations. In Asset Management, we have a strong global presence and will further enhance our position by expanding our footprint in Asia in key markets where we see significant opportunities. Winterthur Our insurance business, Winterthur, achieved good progress in 2005 as it further strengthened its overall financial results and operating performance. Life & Pensions recorded net income of CHF 490 million for the full year 2005 as it continued its focus on technical performance, reflected by an improved risk margin, while maintaining good growth dynamics. The 6% decline in net income compared to 2004 was primarily attributable to the adverse impact of a change in actuarial models and assumptions. Fourth-quarter 2005 net income was stable at CHF 152 million compared to the fourth quarter of 2004. In Non-Life, net income increased from CHF 206 million in 2004 to CHF 578 million in 2005. This improvement was driven partly by the non-recurrence of the after-tax charge of CHF 242 million recorded in the fourth quarter of 2004 to increase provisions for contingencies related to the sale of Winterthur International in 2001. Other important drivers were improved underwriting results and our favorable claims experience, which contributed to an unusually low combined ratio. For the fourth quarter of 2005, Non-Life posted net income of CHF 126 million, compared to a net loss of CHF 177 million in the same period of last year. Adjusting for the above-mentioned charge of CHF 242 million, the improvement in profitability was still substantial. The main factors contributing to this improvement were a favorable claims experience and strict cost and claims management. Change in accounting treatment of share-based compensation awards Following recent guidance from and discussions with US Securities and Exchange Commission (SEC) staff through February 10, 2006, regarding the appropriate period over which to expense share-based compensation awards that have a non-competition provision with scheduled vesting beyond an employee’s eligibility for early retirement, Credit Suisse Group announced a change to its accounting treatment of certain share-based compensation awards on February 13, 2006. As a result, the Group recorded a non-cash charge in the Corporate Center in the fourth quarter of 2005 for certain share-based compensation awards granted in 2005. This resulted in a CHF 630 million increase in banking compensation and benefits and a CHF 421 million reduction in net income for the fourth quarter and full year 2005. This non-cash charge represents an acceleration of compensation expenses that would otherwise have been reflected in future years. Dividend proposal Our priority is clear: we want to generate long-term value for our shareholders by offering superior service to our clients and by securing a leading position in our industry. At the same time, we are committed to balancing our long-term targets with the short-term expectations of our shareholders. Accordingly, as of February 10, 2006, we had repurchased 26,152,200 shares with a value of CHF 1.4 billion in connection with our share buyback program. We maintained strong capital ratios in 2005 and reported a consolidated BIS tier 1 ratio of 11.3% at year-end 2005. Credit Suisse Group is also committed to maintaining a competitive dividend policy. The Board of Directors of Credit Suisse Group will propose a dividend of CHF 2.00 per share for the financial year 2005 to the Annual General Meeting on April 28, 2006. This compares to a dividend of CHF 1.50 per share for the financial year 2004. If approved by the shareholders at the Annual General Meeting, the dividend will be paid on May 4, 2006. Outlook Our current outlook for global economic growth and the capital markets is positive. We believe that growth will continue to be robust and that inflation will remain under control, resulting in only moderate rises in interest rates. Provided there are no major adverse geopolitical developments or external events, we expect the equity markets to outperform the bond markets, with the US dollar remaining well supported. While oil prices may reach new highs in the early part of 2006, we anticipate that they may trend lower later in the year. Yours sincerely Walter B. Kielholz Oswald J. Grübel Chairman of the Board of Directors Chief Executive Officer February 2006

Net income/(loss)
									12 months
in CHF m			4Q2005		3Q2005		4Q2004		2005		2004
Private Banking			653		728		616		2,647		2,473
Corporate & Retail Banking			254		264		257		1,069		901
Institutional Securities			336		612		269		1,080		1,313
Wealth & Asset Management			182		101		63		663		530
Life & Pensions			152		96		152		490		522
Non-Life			126		190		(177)		578		206
Corporate Center			(600)		(73)		(221)		(677)		(317)
Credit Suisse Group			1,103		1,918		959		5,850		5,628

Net revenues
									12 months
in CHF m			4Q2005		3Q2005		4Q2004		2005		2004
Private Banking			1,986		2,021		1,717		7,729		7,170
Corporate & Retail Banking			861		879		803		3,458		3,348
Institutional Securities 1)			3,622		4,303		2,906		15,102		13,120
Wealth & Asset Management 2)			1,478		1,250		1,028		5,234		4,202
Life & Pensions			3,627		4,246		3,939		18,197		16,618
Non-Life			2,890		2,937		2,835		11,688		11,533
Corporate Center			(246)		(218)		(333)		(776)		(852)
Credit Suisse Group			14,218		15,418		12,895		60,632		55,139
1) Including CHF 86 million, CHF 85 million, CHF -13 million, CHF 379 million and CHF 128 million in 4Q2005, 3Q2005, 4Q2004, 12 months 2005 and 12 months 2004, respectively, in minority interest revenues relating primarily to the FIN 46R consolidation.
2) Including CHF 468 million, CHF 438 million, CHF 256 million, CHF 1,695 million and CHF 960 million in 4Q2005, 3Q2005 and 4Q2004, 12 months 2005 and 12 months 2004, respectively, in minority interest revenues relating primarily to the FIN 46R consolidation.

Highlights of 2005

In 2005, Credit Suisse Group merged its two banking entities, Credit Suisse and Credit Suisse First Boston, to create an integrated global bank combining its core businesses of investment banking, private banking and asset management. The integrated global structure was launched on January 1, 2006, and a new brand was implemented. The Private Banking segment reported record net income of CHF 2,647 million in 2005. Net new assets totaled CHF 42.7 billion for the full year, reflecting excellent inflows across all regions. Credit Suisse continued to build its global Private Banking presence throughout 2005 and invested in key international markets, especially in Asia and the Middle East. The Swiss-based Corporate & Retail Banking business generated net income of CHF 1,069 million for 2005. This record result was primarily attributable to a favorable credit environment and good net revenues. Institutional Securities focused on key client segments in 2005. Net income for the full year totaled CHF 1,080 million. The segment achieved higher revenues and gains in market share in key products such as IPOs, leveraged finance, emerging markets, prime brokerage and advanced execution services in 2005. The Wealth & Asset Management segment posted strong net income of CHF 663 million for 2005, mainly reflecting higher investment-related gains in Alternative Capital. The insurance business, Winterthur, achieved good progress in 2005 as it improved its overall financial results and strengthened its operating performance.

Consolidated statements of income (unaudited)

													12 months
in CHF m			4Q2005		3Q2005		4Q2004		Change in % from 3Q2005		Change in % from 4Q2004		2005		2004		Change in % from 2004
Interest and dividend income			11,562		10,439		7,710		11		50		40,928		30,953		32
Interest expense			(9,131)		(7,624)		(4,960)		20		84		(29,335)		(19,006)		54
Net interest income			2,431		2,815		2,750		(14)		(12)		11,593		11,947		(3)
Commissions and fees			4,098		3,797		3,289		8		25		14,617		13,577		8
Trading revenues			1,811		2,953		1,400		(39)		29		7,507		4,559		65
Realized gains/(losses) from investment securities, net			259		370		298		(30)		(13)		1,489		1,143		30
Insurance net premiums earned			4,558		4,439		4,519		3		1		20,970		20,580		2
Other revenues			1,061		1,044		639		2		66		4,456		3,333		34
Total noninterest revenues			11,787		12,603		10,145		(6)		16		49,039		43,192		14
Net revenues			14,218		15,418		12,895		(8)		10		60,632		55,139		10
Policyholder benefits, claims and dividends			4,836		5,619		5,402		(14)		(10)		23,569		22,295		6
Provision for credit losses			(27)		(48)		(127)		(44)		(79)		(140)		78		–
Total benefits, claims and credit losses			4,809		5,571		5,275		(14)		(9)		23,429		22,373		5
Insurance underwriting, acquisition and administration expenses			986		1,269		962		(22)		2		4,307		4,103		5
Banking compensation and benefits			3,982		3,595		2,634		11		51		13,971		11,951		17
Other expenses			2,732		2,109		2,501		30		9		9,672		8,395		15
Restructuring charges			3		0		8		–		(63)		4		85		(95)
Total operating expenses			7,703		6,973		6,105		10		26		27,954		24,534		14
Income from continuing operations before taxes, minority interests and cumulative effect of accounting changes			1,706		2,874		1,515		(41)		13		9,249		8,232		12
Income tax expense			86		433		312		(80)		(72)		1,356		1,421		(5)
Minority interests, net of tax			511		510		255		0		100		2,030		1,127		80
Income from continuing operations before cumulative effect of accounting changes			1,109		1,931		948		(43)		17		5,863		5,684		3
Income/(loss) from discontinued operations, net of tax			(6)		(13)		11		(54)		–		(27)		(50)		(46)
Cumulative effect of accounting changes, net of tax			0		0		0		–		–		14		(6)		–
Net income			1,103		1,918		959		(42)		15		5,850		5,628		4

Return on equity - Group			11.2%		20.1%		10.6%		–		–		15.4%		15.9%		–
Earnings per share in CHF
Basic earnings per share			0.98		1.67		0.82		–		–		5.17		4.80		–
Diluted earnings per share			0.95		1.63		0.80		–		–		5.02		4.75		–

Credit Suisse Group financial highlights
													12 months
in CHF m, except where indicated			4Q2005		3Q2005		4Q2004		Change in % from 3Q2005		Change in % from 4Q2004		2005		2004		Change in % from 2004
Consolidated income statement
Net revenues			14,218		15,418		12,895		(8)		10		60,632		55,139		10
Income from continuing operations before cumulative effect of accounting changes			1,109		1,931		948		(43)		17		5,863		5,684		3
Net income			1,103		1,918		959		(42)		15		5,850		5,628		4
Return on equity
Return on equity - Group			11.2%		20.1%		10.6%		–		–		15.4%		15.9%		–
Return on equity - Banking			10.8%		22.7%		14.1%		–		–		16.2%		17.8%		–
Return on equity - Winterthur			11.4%		11.9%		(1.2%)		–		–		11.7%		9.2%		–
Earnings per share
Basic earnings per share in CHF			0.98		1.67		0.82		–		–		5.17		4.80		–
Diluted earnings per share in CHF			0.95		1.63		0.80		–		–		5.02		4.75		–
Net new assets in CHF bn			7.8		19.0		3.5		–		–		58.4		32.9		–

in CHF m, except where indicated			31.12.05		30.09.05		31.12.04		Change in % from 30.09.05		Change in % from 31.12.04
Assets under management in CHF bn			1,484.3		1,404.6		1,220.7		5.7		21.6
Consolidated balance sheet
Total assets			1,339,052		1,326,755		1,089,485		1		23
Shareholders' equity			42,118		38,634		36,273		9		16
Consolidated BIS capital data
Risk-weighted assets			232,891		239,604		199,249		(3)		17
Tier 1 ratio			11.3%		11.1%		12.3%		–		–
Total capital ratio			13.7%		13.9%		16.6%		–		–
Number of employees
Switzerland - banking segments			20,194		20,030		19,558		1		3
Switzerland - insurance segments			5,928		5,983		6,147		(1)		(4)
Outside Switzerland - banking segments			24,370		23,313		21,606		5		13
Outside Switzerland - insurance segments			13,031		13,460		13,221		(3)		(1)
Number of employees (full-time equivalents)			63,523		62,786		60,532		1		5
Stock market data
Market price per registered share in CHF			67.00		57.30		47.80		17		40
Market price per American Depositary Share in USD			50.95		44.48		42.19		15		21
Market capitalization			75,399		62,181		53,097		21		42
Market capitalization in USD m			57,337		48,269		46,865		19		22
Book value per share in CHF			37.43		35.60		32.65		5		15
Shares outstanding			1,125,360,183		1,085,178,424		1,110,819,481		4		1

Additional information For additional information on Credit Suisse Group’s fourth-quarter and full-year 2005 results, please refer to the Group’s Quarterly Report Q4 2005, as well as the Group’s slide presentation for analysts and the press, which are available on the Internet at: www.credit-suisse.com/results. The Quarterly Report (English only) can be ordered at Credit Suisse ULLM 2 Uetlibergstrasse 231 8070 Zurich Fax: +41 44 332 7294 Photographs taken by John Wildgoose Cover: Sean A. Dillon, Equity Sales (New York) Page 4: Baoming Ma, Product Control (New York) Page 5: Max Galka, CMOs (New York)

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 CH-8070 Zurich Switzerland www.credit-suisse.com

5520204 English

Credit Suisse Group Quarterly Report 2005/Q4

Credit Suisse Group financial highlights
													12 months
in CHF m, except where indicated			4Q2005		3Q2005		4Q2004		Change in % from 3Q2005		Change in % from 4Q2004		2005		2004		Change in % from 2004
Consolidated income statement
Net revenues			14,218		15,418		12,895		(8)		10		60,632		55,139		10
Income from continuing operations before cumulative effect of accounting changes			1,109		1,931		948		(43)		17		5,863		5,684		3
Net income			1,103		1,918		959		(42)		15		5,850		5,628		4
Return on equity
Return on equity - Group			11.2%		20.1%		10.6%		–		–		15.4%		15.9%		–
Return on equity - Banking			10.8%		22.7%		14.1%		–		–		16.2%		17.8%		–
Return on equity - Winterthur			11.4%		11.9%		(1.2%)		–		–		11.7%		9.2%		–
Earnings per share
Basic earnings per share in CHF			0.98		1.67		0.82		–		–		5.17		4.80		–
Diluted earnings per share in CHF			0.95		1.63		0.80		–		–		5.02		4.75		–
Net new assets in CHF bn			7.8		19.0		3.5		–		–		58.4		32.9		–

in CHF m, except where indicated			31.12.05		30.09.05		31.12.04		Change in % from 30.09.05		Change in % from 31.12.04
Assets under management in CHF bn			1,484.3		1,404.6		1,220.7		5.7		21.6
Consolidated balance sheet
Total assets			1,339,052		1,326,755		1,089,485		1		23
Shareholders' equity			42,118		38,634		36,273		9		16
Consolidated BIS capital data
Risk-weighted assets			232,891		239,604		199,249		(3)		17
Tier 1 ratio			11.3%		11.1%		12.3%		–		–
Total capital ratio			13.7%		13.9%		16.6%		–		–
Number of employees
Switzerland - banking segments			20,194		20,030		19,558		1		3
Switzerland - insurance segments			5,928		5,983		6,147		(1)		(4)
Outside Switzerland - banking segments			24,370		23,313		21,606		5		13
Outside Switzerland - insurance segments			13,031		13,460		13,221		(3)		(1)
Number of employees (full-time equivalents)			63,523		62,786		60,532		1		5
Stock market data
Market price per registered share in CHF			67.00		57.30		47.80		17		40
Market price per American Depositary Share in USD			50.95		44.48		42.19		15		21
Market capitalization			75,399		62,181		53,097		21		42
Market capitalization in USD m			57,337		48,269		46,865		19		22
Book value per share in CHF			37.43		35.60		32.65		5		15
Shares outstanding			1,125,360,183		1,085,178,424		1,110,819,481		4		1

Cover: Sean A. Dillon, Equity Sales (New York). Photographer: John Wildgoose

Contents Credit Suisse Group Contents Dear shareholders, clients and colleagues Banking segments Winterthur Creating benefits as an integrated global bank Outlook Credit Suisse Group Factors affecting results of operations Summary of segment results Credit Suisse Group consolidated results Total benefits, claims and credit losses Total operating expenses Income tax expense Minority interests Equity capital Net new assets Further guidance on accounting for share-based awards Dividend proposal Credit Suisse Group structure Risk Management Economic Risk Capital trends Trading risks Loan exposure Private Banking Corporate & Retail Banking Institutional Securities Wealth & Asset Management Life & Pensions Non-Life Investments for Life & Pensions and Non-Life Condensed consolidated financial statements – Credit Suisse Group Consolidated statements of income (unaudited) Consolidated balance sheets (unaudited) Consolidated statements of changes in shareholders’ equity (unaudited) Comprehensive income (unaudited) Consolidated statements of cash flows (unaudited) Consolidated statements of cash flows – continued (unaudited) Notes to the condensed consolidated financial statements – unaudited Summary of significant accounting policies Basis of presentation Share-based compensation New accounting pronouncements Standards to be adopted in future periods Segment Reporting Interest and dividend income and interest expense Trading activities Commissions and fees Loans Restructuring liabilities Accumulated other comprehensive income Earnings per share Pension Guarantees and commitments Guarantees Other commitments Variable interest entities Collateralized debt obligations Commercial paper conduits Financial intermediation Litigation Foreign currency translation rates Information for investors Enquiries Cautionary statement regarding forward-looking information

Oswald J. Grübel Chief Executive Officer Credit Suisse Group

Dear shareholders, clients and colleagues 2005 was a decisive year for Credit Suisse Group. We merged our two banking entities, Credit Suisse and Credit Suisse First Boston, to create an integrated global bank combining our core businesses of investment banking, private banking and asset management under a single brand. Our new structure is the foundation for our future growth. While focusing on the implementation of our strategy in 2005, we also succeeded in growing our business. In particular, the Group’s banking business benefited from high levels of client activity during the year. Driven by stronger net revenues, Credit Suisse Group reported improved profitability in 2005. Net income for the full year totaled CHF 5,850 million, up 4% compared to 2004. This includes a non-cash charge in the fourth quarter of 2005 of CHF 421 million after tax relating to a change in the Group’s accounting for share-based awards as well as a CHF 624 million after-tax charge in Institutional Securities in the second quarter of 2005 to increase the reserve for certain private litigation matters. The Group's return on equity decreased to 15.4% from 15.9% in 2004, with a return on equity of 16.2% for the banking business and 11.7% for the insurance business. In the fourth quarter of 2005, the Group's net income totaled CHF 1,103 million, compared to net income of CHF 959 million in the fourth quarter of 2004. Our 2005 results show that we are making good progress in strengthening the underlying profitability of our business. I am convinced that our new integrated structure will help us further enhance our profitability and returns for our shareholders. Banking segments Private Banking reported strong revenues - related to the increase in assets under management, higher trading revenues and an increase in brokerage volumes – as well as excellent inflows of net new assets across all regions in 2005. Its full-year net income was a record CHF 2,647 million, up 7% from 2004. In the fourth quarter of 2005, Private Banking reported net income of CHF 653 million, an increase of 6% compared to the fourth quarter of 2004. Net new assets for the year totaled CHF 42.7 billion, representing a strong growth rate of 7.9%. We continued to build our global Private Banking presence throughout 2005 and invested in key international markets, especially in Asia and the Middle East. During the fourth quarter of 2005, Private Banking’s net revenues remained at the same high level as in the previous quarter, supported by sound asset-based revenues. Fourth-quarter 2005 operating expenses increased mainly due to ongoing investments in strategic growth markets. Our Swiss-based Corporate & Retail Banking business achieved a record result for 2005, with net income of CHF 1,069 million – an increase of 19% compared to the previous year. Its return on average allocated capital was 20.7%, compared to 18.0% in 2004. The main factors contributing to this strong performance were a favorable credit environment and good net revenues, which benefited from an improved level of commissions and fees. Although net income improved for the full year, fourth-quarter 2005 net income was slightly below the fourth quarter of 2004. During 2005, Institutional Securities focused on key client segments and benefited from increased levels of market activity. This resulted in higher revenues and gains in market share in key products such as initial public offerings, leveraged finance, prime brokerage and advanced execution services. Net income for 2005 totaled CHF 1,080 million. Excluding the CHF 624 million after-tax charge in the second quarter of 2005 to increase the reserve for certain private litigation matters, net income for the full year increased 30% to CHF 1,704 million. In the fourth quarter of 2005, Institutional Securities reported net income of CHF 336 million, a 25% increase from the fourth quarter of 2004. Significant growth in investment banking revenues during the quarter was offset by higher operating expenses. In Wealth & Asset Management, we reported strong net income of CHF 663 million for 2005. This 25% increase over the prior year was mainly attributable to higher investment-related gains in Alternative Capital. Net new assets for the year totaled CHF 11.5 billion, a CHF 8.9 billion increase compared to 2004. In the fourth quarter of 2005, Wealth & Asset Management benefited from higher revenues in all key business areas, with net income of CHF 182 million compared to CHF 63 million in the fourth quarter of 2004. Winterthur Winterthur, our insurance business, achieved good progress in 2005 as it further strengthened its overall financial results and operating performance. Life & Pensions continued its focus on technical performance, reflected by an improved risk margin, while maintaining good growth dynamics. For the full year 2005, Life & Pensions reported net income of CHF 490 million. This 6% decrease compared to 2004 was primarily attributable to specific effects related to taxes and changes in actuarial models and assumptions. Fourth-quarter 2005 net income was stable at CHF 152 million compared to the fourth quarter of 2004. In Non-Life, net income for 2005 increased from CHF 206 million to CHF 578 million. This improvement was partly driven by the after-tax charge of CHF 242 million booked in the fourth quarter of 2004 to increase provisions for contingencies related to the sale of Winterthur International in 2001. Other important drivers were improved underwriting results and lower claims, which contributed to a substantially lower combined ratio. For the fourth quarter of 2005, Non-Life posted net income of CHF 126 million compared to a net loss of CHF 177 million, including the above-mentioned charge, in the same period of last year. The main factors contributing to this substantial improvement were a favorable claims experience and continued strict cost and claims management. Creating benefits as an integrated global bank We launched the newly integrated global structure of Credit Suisse on January 1, 2006, and expect to generate significant revenue growth and cost synergies from the integration in the coming years. At our Investor Day in December 2005, we stated that Credit Suisse Group aims to achieve total pre-tax benefits from revenue growth and cost synergies of CHF 1.3 billion in 2008, which should result in a positive net income benefit of around CHF 1.0 billion. Our priority is clear: we want to generate value for our shareholders by offering superior service to our clients and by securing a leading position in our industry. At the same time, we are committed to balancing our long-term targets with the short-term expectations of our shareholders. Accordingly, as of February 10, 2006, we had repurchased 26,152,200 shares in the amount of CHF 1.4 billion under our share buyback program. We maintained strong capital ratios with a consolidated BIS tier 1 ratio of 11.3% at year-end 2005. Credit Suisse Group is also committed to a competitive dividend policy. The Board of Directors of Credit Suisse Group will therefore propose a dividend of CHF 2.00 per share for 2005 to the Annual General Meeting on April 28, 2006. This compares to a dividend of CHF 1.50 per share for the previous year. Outlook Our current outlook for global economic growth and the capital markets is positive. We believe that growth will continue to be robust and that inflation will remain under control, resulting in only moderate increases in interest rates. Provided there are no major adverse geopolitical developments or external events, we expect the equity markets to outperform the bond markets, with the US dollar remaining well supported. While oil prices may reach new highs in the early part of 2006, we anticipate that they will trend lower later in the year. Yours sincerely Oswald J. Grübel February 2006

Credit Suisse Group Credit Suisse Group recorded net income of CHF 1,103 million in the fourth quarter of 2005, an increase of CHF 144 million, or 15%, from net income of CHF 959 million in the fourth quarter of 2004. Net income for the full year 2005 was CHF 5,850 million, an increase of CHF 222 million, or 4%, compared to the full year 2004. The Group’s fourth-quarter results reflect increased net income in Private Banking, Institutional Securities, Wealth & Asset Management and Non-Life, while net income in Corporate & Retail Banking was slightly lower and Life & Pensions net income remained flat compared to the fourth quarter of 2004. Net income was adversely affected by a change in the Group’s accounting for share-based awards. See “Further guidance on accounting for share-based awards.” Factors affecting results of operations The market environment in the fourth quarter of 2005 was generally favorable but certain sectors were more challenging than in the third quarter of 2005. The insurance segments continued to be challenged by the sustained low interest rate environment despite the recent interest rate increases. The US economy remained resilient despite higher energy prices, an increase in corporate bankruptcies early in the quarter and higher-than-expected consumer and producer price indices. The main US equity markets recorded gains of 2% to 3% during the quarter. In Europe, the Swiss Market Index increased 16% during the quarter and the other main European equity markets showed solid gains, despite sluggish economic growth and the uncertainty generated during the election of the new German Chancellor. China continues to lead the economic growth in Asia and the revival of the Japanese economy continued through the end of the year. The US Federal Reserve continued to increase short-term interest rates, raising short-term rates to 4.25% in December 2005. The yield curve continued to flatten and became inverted at the end of 2005, with long-term interest rates falling below short-term rates. Despite worries about Europe's fragile economic recovery, the European Central Bank raised its benchmark interest rate for the first time in five years, motivated by inflation fears. Both the Bank of England and Japan kept benchmark rates stable during the quarter. Credit spreads in the US widened slightly in response to the flatter Treasury curve, creating less favorable trading conditions in the quarter. Stronger-than-expected global economic and corporate earnings growth contributed to healthy underwriting activity in the quarter. The Swiss franc closed largely flat against the US dollar compared to the beginning of the fourth quarter of 2005, however, significant volatility was seen during the quarter. The global credit environment remained favorable for lenders, with a corresponding positive impact on the Group’s provision for credit losses. Industry-wide volume of announced mergers and acquisitions in the fourth quarter of 2005 was higher than in the fourth quarter of 2004. The volume of announced mergers and acquisitions transactions during the quarter reached the highest level since the third quarter of 2000, driven by easy access to capital and strong activity by financial sponsors. Activity in global mergers and acquisitions during 2005 was at its highest level since 2000, with strong contributions from the US, Europe and Asia. Equity underwriting volumes in the fourth quarter of 2005 continued to strengthen with an increase in industry-wide equity capital markets activity compared to the fourth quarter of 2004 and to the prior quarter. Global equity capital markets volume in 2005 reached its highest level in five years driven by significant increases in IPO activity in both Europe and Asia. Industry-wide volumes for debt issuance in the fourth quarter of 2005 increased compared to the fourth quarter of 2004 and to the previous quarter. However, high-yield debt saw volume declines versus both periods, while investment grade debt volumes increased only slightly. After a record-setting 2004, global high-yield corporate debt issuance declined considerably in 2005, posting three consecutive quarters of fewer than 100 issues per period, the longest stretch since early 2003. Although global investment grade debt issuance volume in 2005 marked a new annual high, quarterly volumes declined steadily throughout the year. Summary of segment results Private Banking reported net income of CHF 653 million in the fourth quarter of 2005, compared to CHF 616 million in the fourth quarter of 2004. For the full year 2005, net income was CHF 2,647 million, an increase of CHF 174 million, or 7%, compared to the full year 2004. Both fourth-quarter and full-year net revenues were driven by higher commissions and fees and increased trading revenues, reflecting higher assets under management and higher client transaction volume, which were partially offset by higher compensation and benefits reflecting growth initiatives in key markets and higher performance-related compensation. Corporate & Retail Banking reported net income of CHF 254 million in the fourth quarter of 2005, slightly lower compared to the fourth quarter of 2004. For the full year 2005, net income was CHF 1,069 million, an increase of CHF 168 million, or 19%, compared to the full year 2004. Fourth-quarter 2005 net revenues were driven by higher trading revenues and increased net interest income compared to the fourth quarter of 2004, while net revenues for the full year 2005 benefited from increased commissions and fees and higher trading revenues. Higher net income in both the fourth quarter of 2005 and full year 2005 reflected releases of credit provisions and higher compensation and benefits. Institutional Securities reported net income of CHF 336 million in the fourth quarter of 2005, an increase of CHF 67 million, or 25%, compared to the fourth quarter of 2004, reflecting higher net revenues, including a significant increase in investment banking revenues, which was offset by an increase in total operating expenses, both compensation and benefits and other expenses. In addition, the fourth-quarter net income was positively impacted by certain tax-related items that resulted in a tax benefit of CHF 132 million. For the full year 2005, Institutional Securities reported net income of CHF 1,080 million, a decrease of CHF 233 million, or 18%, compared to the full year 2004. This result includes a second-quarter 2005 after-tax charge of CHF 624 million, to increase the reserve for certain private litigation matters. Wealth & Asset Management reported net income of CHF 182 million in the fourth quarter of 2005, an increase of CHF 119 million, or 189%, compared to the fourth quarter of 2004, with increased revenues in all key business areas. For the full year 2005, net income was CHF 663 million, an increase of CHF 133 million, or 25%, driven primarily by higher investment-related gains. Both Institutional Securities and Wealth & Asset Management maintained a disciplined approach to compensation expenses. The compensation to revenue ratio for the combined segments (excluding minority interest revenues) was 51.9% in the fourth quarter of 2005, compared to 52.9% in the fourth quarter of 2004 and 51.9% in the third quarter of 2005. For the full year 2005, the compensation to revenue ratio for the combined segments (excluding minority interest revenues) was 51.9%, compared to 53.1% for the full year 2004. Life & Pensions reported net income of CHF 152 million in the fourth quarter of 2005, unchanged compared to the fourth quarter of 2004. In 2005, Life & Pensions continued its focus on technical performance, reflected by an improved risk margin, while maintaining good growth dynamics, reporting net income of CHF 490 million. The decrease of CHF 32 million, or 6%, compared to 2004 was primarily attributable to the adverse impact of a change in actuarial assumptions and models of CHF 61 million after tax and policyholder participations. In addition, net income in 2005 included an increase in the valuation of deferred tax assets (by decreasing the related valuation allowance) in relation to tax loss carry-forwards created in prior years. Non-Life reported net income of CHF 126 million in the fourth quarter of 2005, compared to a net loss of CHF 177 million in the fourth quarter of 2004, which included a charge of CHF 242 million after tax related to the sale of Winterthur International in 2001. The related dispute with XL Capital Ltd (XL) was decided in Winterthur’s favor in the fourth quarter of 2005 and accordingly no further provisions were recorded in connection with this dispute. For the full year 2005, net income was CHF 578 million, an increase of CHF 372 million, or 181%, compared to the full year 2004, which reflected the impact of the Winterthur International provisions discussed above. The results in 2005 reflected improved underwriting results and a benefit from the increase in the valuation of deferred tax assets (by decreasing the related valuation allowance) primarily in relation to tax loss carry-forwards created in prior years.

The following table sets forth an overview of segment results:
4Q2005, in CHF m			Private Banking		Corporate & Retail Banking		Institutional Securities		Wealth & Asset Management		Life & Pensions		Non-Life		Corporate Center		Credit Suisse Group
Net revenues			1,986		861		3,622		1,478		3,627		2,890		(246)		14,218
Policyholder benefits, claims and dividends			–		–		–		–		2,984		1,858		(6)		4,836
Provision for credit losses			2		(23)		(12)		0		6		1		(1)		(27)
Total benefits, claims and credit losses			2		(23)		(12)		0		2,990		1,859		(7)		4,809
Insurance underwriting, acquisition and administration expenses			–		–		–		–		373		612		1		986
Banking compensation and benefits			592		270		2,019		340		–		–		761		3,982
Other expenses			570		288		1,328		440		38		140		(72)		2,732
Restructuring charges			0		0		0		0		1		2		0		3
Total operating expenses			1,162		558		3,347		780		412		754		690		7,703
Income from continuing operations before taxes and minority interests			822		326		287		698		225		277		(929)		1,706
Income tax expense/(benefit)			164		71		(132)		60		61		137		(275)		86
Minority interests, net of tax			5		1		83		456		12		7		(53)		511
Income from continuing operations			653		254		336		182		152		133		(601)		1,109
Income/(loss) from discontinued operations, net of tax			0		0		0		0		0		(7)		1		(6)
Net income			653		254		336		182		152		126		(600)		1,103

Credit Suisse Group consolidated results The Group reported net revenues of CHF 14,218 million in the fourth quarter of 2005, an increase of CHF 1,323 million, or 10%, compared to the fourth quarter of 2004. Net revenues were CHF 60,632 million for the full year 2005, an increase of CHF 5,493 million, or 10%, compared to the full year 2004. Net interest income, which includes dividend income, was CHF 2,431 million in the fourth quarter of 2005, a decrease of CHF 319 million, or 12%, compared to the fourth quarter of 2004, and a decrease of CHF 384 million, or 14%, compared to the third quarter of 2005. This was due primarily to an increase in interest expense in Institutional Securities as a result of higher short-term borrowing costs and higher financing liabilities. For the full year 2005, net interest income was CHF 11,593 million, a decrease of CHF 354 million, or 3%, due mainly to the increase in interest expense in Institutional Securities. This was partially offset by increases in the insurance segments of CHF 256 million due to lower interest expense and increased dividend receipts as corporations declared generally higher dividends in line with economic improvements. Commissions and fees rose by CHF 809 million, or 25%, to CHF 4,098 million compared to the fourth quarter of 2004, due mainly to significantly higher underwriting and advisory and other fees in Institutional Securities. In addition, the increase reflected higher asset-based commissions and fees due to increased assets under management and higher brokerage volumes and product sales in Private Banking, and higher asset management and administrative fees in Wealth & Asset Management. For the full year 2005, commissions and fees were CHF 14,617 million, an increase of CHF 1,040 million, or 8%, compared to the full year 2004. This improvement was generated largely by higher asset-based commissions and brokerage volumes in Private Banking, increased investment banking revenues in Institutional Securities, and higher placement fees and management fees in Wealth & Asset Management. Trading revenues of CHF 1,811 million increased by CHF 411 million, or 29%, compared to the fourth quarter of 2004, due mainly to improved performance in the commercial mortgage-backed securities and collateralized debt obligations businesses in Institutional Securities. In addition, Private Banking recorded an increase due mainly to client foreign exchange trading. Further, Corporate & Retail Banking recorded increases due to the positive impact of changes in the fair value of interest rate derivatives. Trading revenues decreased by CHF 1,142 million, or 39%, compared to the third quarter of 2005, due mainly to a decrease in both fixed income and equity trading in Institutional Securities, which largely reflected a generally less favorable market environment. For the full year 2005, trading revenues increased by CHF 2,948 million, or 65%, to CHF 7,507 million, with all banking segments recording increases, the largest of which were in Institutional Securities and Private Banking. The increase in Institutional Securities was driven by increases in both fixed income and equity trading results, while the increase in Private Banking was driven by client foreign exchange trading and trading execution. In addition, Life & Pensions recorded an increase of CHF 784 million compared to the full year 2004, primarily reflecting the market appreciation of the underlying assets backing unit-linked products which is credited to policyholder account balances. Net realized gains/(losses) from investment securities decreased CHF 39 million, or 13%, to CHF 259 million in the fourth quarter of 2005, due mainly to a decrease in Institutional Securities compared to the fourth quarter of 2004. For the full year 2005, net realized gains/(losses) from investment securities increased CHF 346 million, or 30%, to CHF 1,489 million, primarily due to higher net realized gains on equity securities in Life & Pensions. Insurance net premiums earned increased CHF 39 million, or 1%, to CHF 4,558 million compared to the fourth quarter of 2004. For the full year 2005, insurance net premiums earned increased CHF 390 million, or 2%, to CHF 20,970 million driven primarily by positive sales performance in Life & Pensions in Germany, Spain and the Swiss group life business. Other revenues were CHF 1,061 million in the fourth quarter of 2005 compared to CHF 639 million in the fourth quarter of 2004, an increase of CHF 422 million, or 66%. For the full year 2005, the Group reported other revenues of CHF 4,456 million, an increase of CHF 1,123 million, or 34%, compared to the full year 2004. The increases were due to higher other revenues in Wealth & Asset Management and Institutional Securities, primarily as a result of higher revenues from consolidation of certain private equity funds, as discussed under Minority interests below. This was partially offset by a decrease in the insurance segments due mainly to lower realized gains on other invested assets, including real estate, and increased asset management expenses. Total benefits, claims and credit losses The Group reported a net release of provisions for credit losses of CHF 27 million in the fourth quarter of 2005, compared to a net release of CHF 127 million in the fourth quarter of 2004. For the full year 2005, the Group reported a net release of CHF 140 million compared to a net increase in provisions for credit losses of CHF 78 million for the full year 2004. These releases largely reflected an ongoing favorable credit environment for lenders. Compared to the fourth quarter of 2004, policyholder benefits, claims and dividends decreased CHF 566 million, or 10%, to CHF 4,836 million. This was largely due to a decrease in Life & Pensions of investment income credited to policyholder account balances of CHF 351 million compared to CHF 743 million in the fourth quarter of 2004. In addition, Non-Life reported lower claims and annuities incurred of CHF 1,722 million in the fourth quarter of 2005 compared to CHF 1,968 million in the fourth quarter of 2004 as a result of favorable claims experience. For the full year 2005, the Group recorded policyholder benefits, claims and dividends of CHF 23,569 million compared to CHF 22,295 million for the full year 2004, an increase of CHF 1,274 million, or 6%. This was due mainly to an increase in investment income credited to policyholder account balances in Life & Pensions. Total operating expenses The Group reported total operating expenses of CHF 7,703 million in the fourth quarter of 2005, an increase of CHF 1,598 million, or 26%, compared to the fourth quarter of 2004. This increase was driven primarily by higher banking compensation and benefits in line with the improved results, an incremental expense of CHF 630 million relating to a change in the Group’s accounting for share-based awards and, to a lesser extent, the impact of Private Banking’s growth initiatives in key strategic markets. In addition, other expenses included an adverse foreign exchange translation impact due to the strengthening of the US dollar against the Swiss franc in Institutional Securities and Wealth & Asset Management and higher professional fees in Wealth & Asset Management. For the full year 2005, the Group reported total operating expenses of CHF 27,954 million compared to CHF 24,534 million for the full year 2004, an increase of CHF 3,420 million, or 14%. This included a charge of CHF 960 million (USD 750 million) before tax in Institutional Securities to increase the reserve for certain private litigation matters. Excluding the impact of the litigation charge, total operating expenses increased by CHF 2,460 million, or 10%, mainly reflecting an increase in banking compensation and benefits. Corporate Center total operating expenses included costs relating to the integration of the banking businesses of CHF 84 million in the fourth quarter and CHF 128 million for the full year 2005. Insurance underwriting, acquisition and administration expenses of CHF 986 million increased CHF 24 million, or 2%, compared to the fourth quarter of 2004, primarily reflecting increased amortization of deferred acquisition costs and present value of future profits in Life & Pensions and increased marketing and project costs in Non-Life. For the full year 2005, the Group reported insurance underwriting, acquisition and administration expenses of CHF 4,307 million, an increase of CHF 204 million, or 5%, compared to the full year 2004, primarily reflecting the negative effect of changes in actuarial assumptions and models in Life & Pensions recorded in the third quarter of 2005. Banking compensation and benefits increased CHF 1,348 million, or 51%, to CHF 3,982 million in the fourth quarter of 2005 compared to the fourth quarter of 2004. For the full year 2005, banking compensation and benefits was CHF 13,971 million, an increase of CHF 2,020 million, or 17%. The increase in both the fourth quarter and the full year reflected higher performance-related compensation in the banking segments, in line with the improved results, as well as the impact of Private Banking’s front office recruitment as part of its ongoing strategic investments in growth markets. Banking compensation and benefits in both periods was also impacted by a change in the Group’s accounting for share-based compensation awards subject to a non-competition provision that have scheduled vesting beyond an employee’s eligibility for early retirement. See “Further guidance on accounting for share-based awards.” Other expenses amounted to CHF 2,732 million in the fourth quarter of 2005, an increase of CHF 231 million, or 9%, compared to the fourth quarter of 2004, due in part to the adverse foreign exchange translation impact in Institutional Securities and Wealth & Asset Management and higher professional fees in Wealth & Asset management. This was partially offset by a decline in Non-Life as a result of a provision of CHF 310 million recorded in the fourth quarter of 2004 relating to the sale of Winterthur International to XL. For the full year 2005, the Group reported other expenses of CHF 9,672 million, an increase of CHF 1,277 million, or 15%, compared to the full year 2004, due mainly to the impact of the CHF 960 million litigation charge in Institutional Securities. Income tax expense The Group recorded an income tax expense of CHF 86 million compared to CHF 312 million in the fourth quarter of 2004, a decrease of CHF 226 million, or 72%. Net income was positively impacted by certain tax-related items that resulted in a tax benefit of CHF 132 million in Institutional Securities in the fourth quarter of 2005. These include the release of tax contingency accruals due to the favorable settlement of certain tax audits and a decrease in the full-year effective tax rate below the rate used to accrue taxes during prior quarters in 2005 as a result of changes in the geographic mix of taxable income. In addition, Non-Life reported an income tax expense of CHF 137 million in the fourth quarter of 2005 compared to an income tax benefit of CHF 50 million in the fourth quarter of 2004, due to improved profitability in most Non-Life operations, higher taxes in Switzerland related to the increased valuation of a subsidiary in 2005 and the fourth-quarter 2004 tax benefit of CHF 68 million relating to the sale of Winterthur International. Income tax expense in the fourth quarter of 2005 was impacted by a change in the Group’s accounting for share-based compensation awards subject to a non-competition provision that have scheduled vesting beyond an employee’s eligibility for early retirement. See “Further guidance on accounting for share-based awards.” The Group tax expense is not impacted by investments that are required to be consolidated under the relevant accounting rules, primarily Financial Accounting Standards Board Interpretation No. 46 Revised (FIN 46R). The amount of income related to these investments varies from one period to the next and in the fourth quarter of 2005 amounted to CHF 539 million. Due mainly to this effect, the impact of certain tax-related items in Institutional Securities and the change in accounting for share-based compensation awards, the Group’s effective tax rate in the fourth quarter of 2005 was 5% compared to the Swiss statutory rate of 22%. Minority interests Credit Suisse Group’s net revenues and operating expenses include the consolidation of certain entities and private equity funds primarily under FIN 46R. The consolidation of these entities does not impact net income as the amounts recorded in net revenues and expenses are offset by equivalent amounts recorded in minority interests. Minority interests were CHF 511 million in the fourth quarter of 2005, an increase of CHF 256 million, or 100%, compared to the fourth quarter of 2004. For the full year 2005, minority interests amounted to CHF 2,030 million compared to CHF 1,127 million for the full year 2004. Both the quarterly and full-year increases were due to increased investment-related gains. Equity capital Credit Suisse Group’s consolidated BIS tier 1 ratio was 11.3% as of December 31, 2005, up from 11.1% as of September 30, 2005. The Group continued the share buyback program approved by the Annual General Meeting in 2005, repurchasing CHF 1.4 billion of own shares since the initiation of the program through February 10, 2006. Risk-weighted assets decreased compared to the third quarter of 2005, primarily reflecting securitization activity in the fourth quarter of 2005. Tier 1 capital decreased CHF 171 million with the contribution of fourth quarter net income offset by the continuing share buyback program and accruals related to the proposed 2005 dividends. The Group’s shareholders’ equity as of December 31, 2005 increased to CHF 42.1 billion from CHF 38.6 billion as of September 30, 2005 and includes the CHF 1.2 billion impact of conversion of the mandatory convertible securities.

The following table sets forth details of BIS data (risk-weighted assets, capital and ratios):
			Credit Suisse Group
in CHF m, except where indicated			31.12.05		30.09.05		31.12.04
Risk-weighted positions			218,899		225,946		187,775
Market risk equivalents			13,992		13,658		11,474
Risk-weighted assets			232,891		239,604		199,249
Tier 1 capital			26,348		26,519		24,596
	of which non-cumulative perpetual preferred securities		2,170		2,175		2,118
Tier 1 ratio			11.3%		11.1%		12.3%
Total capital			31,918		33,213		33,121
Total capital ratio			13.7%		13.9%		16.6%
As of January 1, 2004, Credit Suisse Group bases its capital adequacy calculations on US GAAP, which is in accordance with the Swiss Federal Banking Commission (SFBC) newsletter 32 (dated December 18, 2003). The SFBC has advised Credit Suisse Group that it may continue to include as Tier 1 capital CHF 2.2 billion as at December 31, 2005 (September 30, 2005: CHF 2.2 billion and December 31, 2004: CHF 2.1 billion) of equity from special purpose entities, which are deconsolidated under FIN 46R.

Winterthur’s capital position remained stable, with shareholders’ equity of CHF 9.7 billion at December 31, 2005, unchanged compared to September 30, 2005. Net new assets The Group reported net new assets of CHF 7.8 billion in the fourth quarter of 2005, a decrease of CHF 11.2 billion compared to the third quarter of 2005 and an increase of CHF 4.3 billion compared to the fourth quarter of 2004. For the full year 2005, the Group recorded net new assets of CHF 58.4 billion, an increase of CHF 25.5 billion compared to the full year 2004.

The following table sets forth details of assets under management and client assets:
in CHF bn			31.12.05		30.09.05		31.12.04		Change in % from 30.09.05		Change in % from 31.12.04
Private Banking
Assets under management			659.3		637.2		539.1		3.5		22.3
Client assets			698.4		674.5		569.4		3.5		22.7
Corporate & Retail Banking
Assets under management			57.8		56.3		53.9		2.7		7.2
Client assets			122.0		116.6		102.1		4.6		19.5
Institutional Securities
Assets under management			14.5		14.4		15.2		0.7		(4.6)
Client assets			69.6		108.3		95.1		(35.7)		(26.8)
Wealth & Asset Management
Assets under management 1)			599.4		543.8		472.9		10.2		26.7
Client assets			617.0		561.3		488.9		9.9		26.2
Life & Pensions
Assets under management			126.0		125.1		115.5		0.7		9.1
Client assets			126.0		125.1		115.5		0.7		9.1
Non-Life
Assets under management			27.3		27.8		24.1		(1.8)		13.3
Client assets			27.3		27.8		24.1		(1.8)		13.3
Credit Suisse Group
Discretionary assets under management			742.5		684.9		595.8		8.4		24.6
Advisory assets under management			741.8		719.7		624.9		3.1		18.7
Total assets under management			1,484.3		1,404.6		1,220.7		5.7		21.6
Total client assets			1,660.3		1,613.6		1,395.1		2.9		19.0

The following table sets forth details of net new assets:
									12 months
in CHF bn			4Q2005		3Q2005		4Q2004		2005		2004
Private Banking			8.6		14.3		3.9		42.7		26.4
Corporate & Retail Banking			0.2		0.4		0.6		2.0		1.4
Institutional Securities			0.0		0.0		0.2		(2.0)		1.6
Wealth & Asset Management 1)			(0.8)		4.0		0.2		12.5		2.3
Life & Pensions			(0.2)		0.3		(1.4)		3.2		1.2
Credit Suisse Group			7.8		19.0		3.5		58.4		32.9
1) Excluding assets managed on behalf of other entities within Credit Suisse Group. This differs from the presentation of the Wealth & Asset Management segment results, in which such assets are included.

Private Banking reported net new asset inflows of CHF 8.6 billion in the fourth quarter of 2005, with continued healthy contributions from strategic key markets in Asia and the European onshore business. Wealth & Asset Management recorded net asset outflows of CHF 0.8 billion, reflecting an outflow of CHF 3.4 billion in Credit Suisse Asset Management, primarily due to redemptions in money market funds, partially offset by inflows in Alternative Capital and Private Client Services. As of December 31, 2005, the Group’s total assets under management amounted to CHF 1,484.3 billion, an increase of CHF 79.7 billion, or 5.7%, compared to September 30, 2005. Wealth & Asset Management assets under management increased CHF 55.6 billion in the fourth quarter of 2005, due to an internal transfer of a cash management business from the Institutional Securities prime services business to Credit Suisse Asset Management, market performance and exchange rate movements, which were partially offset by net asset outflows. In addition, Private Banking assets under management increased by CHF 22.1 billion, reflecting asset inflows and higher equity markets. Further guidance on accounting for share-based awards The Group early adopted Statement of Financial Accounting Standards No. 123 (Revised 2004), “Share-Based Payment” (SFAS 123R) as of January 1, 2005. In a December 2005 speech, the SEC staff provided further guidance on SFAS 123R, relating to accounting for share-based compensation awards subject to a non-competition provision that have scheduled vesting beyond an employee’s eligibility for early retirement. The SEC staff noted that such share-based awards should generally be expensed over the period from grant date to the date an employee becomes eligible for early retirement, rather than over the entire vesting, or stated service, period, unless the non-competition provision and other factors establish an in-substance requisite service period that extends beyond the early retirement date. Based on a review of relevant share-based awards granted during 2005, the Group had previously concluded that the most appropriate service period to be used for expensing those awards is the vesting period. As a result of the December 2005 guidance, and based on subsequent discussions with the SEC staff, the Group has recorded in the fourth quarter of 2005 an incremental expense to reflect the full year cost of its 2005 share-based awards. This incremental expense reflects the attribution of the total cost of these awards over the period from the grant date to the date the employee becomes eligible for early retirement rather than over the vesting period that ranged from three to five years. The impact of the Group’s change in accounting was to increase fourth-quarter and full-year 2005 banking compensation and benefits by CHF 630 million, and to decrease fourth-quarter and full-year 2005 net income by CHF 421 million. This non-cash charge, recorded in the Corporate Center, represents the acceleration of compensation expense for share-based awards granted in 2005, principally to employees in the Institutional Securities and Wealth & Asset Management segments, that otherwise would have been recorded generally over vesting periods of three to five years. See “Notes to the condensed consolidated financial statements – unaudited – New accounting pronouncements.” Dividend proposal Credit Suisse Group’s Board of Directors will propose a dividend of CHF 2.00 per share to the Annual General Meeting on April 28, 2006. This compares with a dividend of CHF 1.50 per share in 2004. If approved by the Annual General Meeting on April 28, 2006, the dividend will be paid out on May 4, 2006.

Credit Suisse Group structure In 2005 Credit Suisse Group comprised three divisions with six reporting segments: Credit Suisse, including the segments Private Banking and Corporate & Retail Banking; Credit Suisse First Boston, including the segments Institutional Securities and Wealth & Asset Management; and Winterthur, including the segments Life & Pensions and Non-Life. The organizational chart presented below reflects the legal entity, division and segment structure that has been operational since May 16, 2005. The Bank is comprised of former Credit Suisse First Boston and former Credit Suisse, which were merged on May 13, 2005. The merger of these Swiss legal entities constituted the first step towards the creation of an integrated organization. Effective January 1, 2006, the merged bank combined the Credit Suisse and Credit Suisse First Boston divisions in order to better address client needs in a rapidly changing market environment. The objective of the new integrated bank is to operate more efficiently and provide enhanced advisory services and products with a sharper focus on client needs. The new integrated bank is structured along three lines of business. Private Banking includes international and Swiss wealth management as well as services for private clients and corporate clients including pension funds in Switzerland. Investment Banking includes the products and services provided to corporate and investment banking clients. Asset Management includes asset management products and services. The integrated bank adopted the brand name Credit Suisse and a new logo to unite its businesses beginning January 16, 2006. The organizational chart presented below reflects the legal entity, division and segment structure that was operational in 2005, and the following discussion is based on that operational and management structure.

Risk Management Credit Suisse Group’s overall position risk, measured on the basis of Economic Risk Capital (ERC), remained stable in the fourth quarter of 2005 compared with the previous quarter. The more narrowly defined average Value-at-Risk (VaR) in US dollar terms for the Group’s trading books increased by 6% during the fourth quarter of 2005 to USD 53.2 million due to increased equity risk. The loan portfolios across the Group continued to benefit from a favorable credit environment, resulting in a net release of credit provisions of CHF 27 million in the fourth quarter of 2005. Economic Risk Capital trends The Group assesses risk and economic capital adequacy using its Economic Risk Capital (ERC) model. ERC is designed to measure all quantifiable risks associated with the Group’s activities on a consistent and comprehensive basis. The Group assigns ERC for position risk, operational risk and expense 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). It is not a measure of the potential impact on reported earnings, since non-trading activities generally are not marked to market through earnings. In the fourth quarter of 2005, the Group’s 1-year, 99% position risk ERC remained stable compared to the third quarter of 2005, with higher counterparty and foreign exchange risks largely offset by lower emerging market and insurance underwriting risks. In the fourth quarter of 2005, the contribution of the Credit Suisse First Boston division to the Group’s ERC increased to 54% compared to the end of the third quarter of 2005. The contribution of Credit Suisse and Corporate Center stayed at 17% and 2%, respectively, with Winterthur decreasing to 27%. Trading risks The Group assumes trading risks through the trading activities of the Institutional Securities segment and, to a lesser extent, the trading activities of the Private Banking and Corporate & Retail Banking segments. The other segments do not engage in significant trading activities. Trading risks are measured using Value-at-Risk (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. The table below shows the Group’s trading-related market risk 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 mark-to-market trading loss that is at least as large as the reported VaR. The Group’s average 1-day, 99% VaR in the fourth quarter of 2005 was CHF 69.3 million compared to CHF 64.2 million in the third quarter of 2005. In US dollar terms, the Group’s average 1-day, 99% VaR was USD 53.2 million during the fourth quarter of 2005 compared to USD 50.4 million in the third quarter of 2005. The increase in average VaR was due to an increase in equity risk mainly from an increase in equity trading positions. The increase in equity risk was partially offset by a reduction in interest rate VaR due to reduced volatility observed over the last two years in the dataset used to compute VaR. 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 1-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. The Group had no backtesting exceptions during the fourth quarter of 2005 (and no backtesting exceptions in the full year 2005). The histogram entitled “Credit Suisse Group trading revenue” compares the distribution of daily backtesting profit and loss in the fourth quarter of 2005 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 The Group’s total loan exposure grew 2% as of December 31, 2005, compared to September 30, 2005, driven mainly by a 14% increase in the Credit Suisse First Boston division. Compared to September 30, 2005, the Group’s total non-performing loans declined 13% and total impaired loans declined 10% as of December 31, 2005. All divisions reported reductions in total non-performing loans and total impaired loans during the fourth quarter, reflecting the continued favorable credit cycle. In the fourth quarter of 2005, the Group recorded a net release of provisions for credit losses of CHF 27 million, compared to a net release of CHF 48 million in the previous quarter. The additions, releases and recoveries included in determining the allowance for loan losses are presented in the following tables. Coverage of total impaired loans by valuation allowances at the Group increased to 67.5% at the end of the fourth quarter of 2005 compared to 66.1% at the end of the third quarter. Coverage of total non-performing loans and total impaired loans improved at the Credit Suisse First Boston division, but declined slightly at the Credit Suisse division.

The following table sets forth the Group's risk profile, using ERC as the common risk denominator:
					Change in % from				Change Analysis: Brief Summary
in CHF m			31.12.05		30.09.05		31.12.04		31.12.05 vs 30.09.05
Interest Rate ERC, Credit Spread ERC & Foreign Exchange Rate ERC			4,566		3%		8%		Higher foreign exchange risk at Credit Suisse First Boston division
Equity Investment ERC			4,082		2%		39%		Higher equity trading risk at Credit Suisse First Boston division partially offset by lower equity exposures at Winterthur
Swiss & Retail Lending ERC			2,301		1%		(1%)		No material change
International Lending ERC & Counterparty ERC			3,093		5%		41%		Higher counterparty exposures at Credit Suisse First Boston division
Emerging Markets ERC			1,965		(5%)		(3%)		Lower Brazil exposures at Credit Suisse First Boston division partially offset by reduction of FX hedges at Winterthur mainly in Hungarian Forint and Polish Zloty
Real Estate ERC & Structured Asset ERC 1)			3,715		1%		27%		Higher US dollar exchange rate fully offset lower residential and commercial real estate exposures at Credit Suisse First Boston division
Insurance Underwriting ERC			811		(4%)		1%		Lower due to reduced exposures at Winterthur
Simple sum across risk categories			20,533		1%		18%
Diversification benefit			(6,651)		5%		19%
Total Position Risk ERC			13,882		0%		17%
1-year, 99% position risk ERC, excluding foreign exchange translation risk. For an assessment of the total risk profile, operational risk ERC and expense 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 2004, which is available on the website: www.credit-suisse.com/annualreport2004. 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's commercial real estate exposures, Credit Suisse's residential real estate exposures, Credit Suisse’s asset-backed securities exposures as well as the real estate acquired at auction and real estate for own use in Switzerland.

The following table sets forth the trading-related market risk exposure for Credit Suisse Group on a consolidated basis, as measured by scaled 1-day, 99% VaR:
			4Q2005								3Q2005
in CHF m			Minimum		Maximum		Average		31.12.05		Minimum		Maximum		Average		30.09.05
Credit Suisse Group 1)
Interest rate & credit spread			35.9		73.5		56.8		68.6		47.0		73.4		60.4		53.8
Foreign exchange rate			6.1		19.4		11.3		11.3		6.0		16.8		9.4		11.1
Equity			40.0		62.6		49.1		56.7		33.4		54.6		42.7		40.1
Commodity			4.9		15.3		9.7		10.6		6.8		15.5		11.2		14.9
Diversification benefit				2)	–	2)	(57.6)		(59.7)		–	2)	–	2)	(59.5)		(57.9)
Total			50.9		87.6		69.3		87.5		48.6		76.9		64.2		62.0
1) Disclosure covers all trading books of Credit Suisse Group. Numbers represent daily 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.

The following table sets forth the gross loan exposure of the three divisions and Credit Suisse Group:
			Credit Suisse						Credit Suisse First Boston						Winterthur						Credit Suisse Group
in CHF m			31.12.05		30.09.05		31.12.04		31.12.05		30.09.05		31.12.04		31.12.05		30.09.05		31.12.04		31.12.05		30.09.05		31.12.04
Consumer loans:
Mortgages			72,905		71,348		67,119		0		0		0		8,249		8,131		8,485		78,562		77,302		75,604
Loans collateralized by securities			16,261		16,583		15,018		0		0		0		4		4		4		16,265		16,587		15,022
Other			3,008		2,434		2,319		827		883		540		0		0		0		3,835		3,317		2,859
Consumer loans			92,174		90,365		84,456		827		883		540		8,253		8,135		8,489		98,662		97,206		93,485
Corporate loans:
Real estate			26,232		26,443		26,135		558		533		613		1,311		1,376		1,376		28,101		28,352		28,124
Commercial & industrial loans			37,443		39,522		33,126		19,537		16,593		13,501		1,433		1,469		958		58,302		57,476		47,585
Loans to financial institutions			8,214		7,565		6,279		7,798		7,675		5,351		2,110		2,071		2,096		18,122		17,311		13,726
Governments and public institutions			1,652		1,638		1,898		786		250		402		2,223		2,187		2,101		4,661		4,075		4,401
Corporate loans			73,541		75,168		67,438		28,679		25,051		19,867		7,077		7,103		6,531		109,186		107,214		93,836
Loans, gross			165,715		165,533		151,894		29,506		25,934		20,407		15,330		15,238		15,020		207,848		204,420		187,321
(Unearned income)/deferred expenses, net			118		125		142		(64)		(35)		(32)		11		7		5		64		97		116
Allowance for loan losses			(1,735)		(1,982)		(2,438)		(456)		(412)		(533)		(51)		(51)		(66)		(2,241)		(2,445)		(3,038)
Total loans, net			164,098		163,676		149,598		28,986		25,487		19,842		15,290		15,194		14,959		205,671		202,072		184,399
This disclosure presents the lending exposure of the Group from a risk management perspective. This presentation differs from other disclosures in this document.

The following table sets forth the impaired loan portfolio of the three divisions and Credit Suisse Group:
			Credit Suisse						Credit Suisse First Boston						Winterthur						Credit Suisse Group
in CHF m			31.12.05		30.09.05		31.12.04		31.12.05		30.09.05		31.12.04		31.12.05		30.09.05		31.12.04		31.12.05		30.09.05		31.12.04
Non-performing loans			1,157		1,206		1,481		143		197		268		22		32		22		1,323		1,435		1,771
Non-interest earning loans			830		1,011		1,259		11		31		9		4		4		14		845		1,045		1,281
Total non-performing loans			1,987		2,217		2,740		154		228		277		26		36		36		2,168		2,480		3,052
Restructured loans			21		22		95		55		61		17		0		0		5		77		84		117
Potential problem loans			726		786		1,077		303		295		355		47		55		71		1,074		1,135		1,503
Total other impaired loans			747		808		1,172		358		356		372		47		55		76		1,151		1,219		1,620
Total impaired loans, gross			2,734		3,025		3,912		512		584		649		73		91		112		3,319		3,699		4,672
Valuation allowances as % of
	Total non-performing loans		87.3%		89.4%		89.0%		296.1%		180.7%		192.4%		196.2%		141.7%		183.3%		103.4%		98.6%		99.5%
	Total impaired loans		63.5%		65.5%		62.3%		89.1%		70.5%		82.1%		69.9%		56.0%		58.9%		67.5%		66.1%		65.0%

The following table sets forth the movements in the allowance for loan losses of the three divisions and Credit Suisse Group:
			Credit Suisse						Credit Suisse First Boston						Winterthur						Credit Suisse Group
in CHF m			4Q2005		3Q2005		4Q2004		4Q2005		3Q2005		4Q2004		4Q2005		3Q2005		4Q2004		4Q2005		3Q2005		4Q2004
Balance beginning of period			1,982		2,115		2,515		412		558		774		51		59		72		2,445		2,733		3,361
New provisions			73		63		69		116		24		62		17		2		7		205		90		138
Releases of provisions			(93)		(70)		(77)		(111)		(76)		(184)		(10)		(4)		(11)		(214)		(150)		(271)
Net additions/(releases) charged to income statement			(20)		(7)		(8)		5		(52)		(122)		7		(2)		(4)		(9)		(60)		(133)
Gross write-offs			(236)		(132)		(75)		(61)		(119)		(53)		(10)		(4)		(3)		(307)		(255)		(133)
Recoveries			6		8		6		81		2		5		0		0		0		86		10		11
Net write-offs			(230)		(124)		(69)		20		(117)		(48)		(10)		(4)		(3)		(221)		(245)		(122)
Allowances acquired/(deconsolidated)			0		0		0		0		0		(24)		0		0		0		0		0		(24)
Provisions for interest			0		(2)		12		13		17		21		(3)		0		0		9		16		33
Foreign currency translation impact and other adjustments, net			3		0		(12)		6		6		(68)		6		(2)		1		17		1		(77)
Balance end of period			1,735		1,982		2,438		456		412		533		51		51		66		2,241		2,445		3,038
Provision for credit losses disclosed in the Credit Suisse Group consolidated statements of income also includes provisions for lending-related exposure of CHF -18 million, CHF 12 million and CHF 6 million for 4Q2005, 3Q2005 and 4Q2004, respectively.

Private Banking Private Banking provides wealth management products and services to high-net-worth individuals in Switzerland and many other markets around the world. Private Banking reported net income of CHF 653 million in the fourth quarter of 2005, up CHF 37 million, or 6%, compared to the fourth quarter of 2004, but down CHF 75 million, or 10%, compared to the previous quarter of 2005. The increase in net income compared to the fourth quarter of 2004 primarily reflected improved commissions and fees and trading revenues, partly offset by higher compensation and benefits. The decrease in net income compared to the previous quarter primarily reflected higher other expenses. Additionally, an increase in commissions and fees in the fourth quarter of 2005 was more than offset by lower trading revenues and net interest income as compared to the third quarter of 2005. For the full year 2005, Private Banking reported record net income of CHF 2,647 million, up CHF 174 million, or 7%, from 2004, primarily reflecting strong revenues related to the increase in assets under management, higher trading revenues and an increase in brokerage volumes. Private Banking had excellent net new asset inflows across all regions in 2005, with record net new assets of CHF 42.7 billion, a growth rate of 7.9% compared to 5.2% in 2004 and the mid-term target of 5%. Private Banking continued to invest in growth opportunities and key business initiatives, including front office recruiting, in Asia and the Middle East. In the fourth quarter of 2005, Private Banking opened a new financial consultancy and advisory office in Mumbai, another milestone in its strategy to grow the wealth management business in Asia. Private Banking also continued the global rollout of its structured five-step client advisory process and strengthened its leading position in product innovation.

The following table presents the results of the Private Banking segment:
													12 months
in CHF m			4Q2005		3Q2005		4Q2004		Change in % from 3Q2005		Change in % from 4Q2004		2005		2004		Change in % from 2004
Net interest income			413		449		436		(8)		(5)		1,889		1,932		(2)
Commissions and fees			1,359		1,306		1,149		4		18		5,054		4,732		7
Trading revenues including realized gains/(losses) from investment securities, net			212		252		113		(16)		88		718		374		92
Other revenues			2		14		19		(86)		(89)		68		132		(48)
Total noninterest revenues			1,573		1,572		1,281		0		23		5,840		5,238		11
Net revenues			1,986		2,021		1,717		(2)		16		7,729		7,170		8
Provision for credit losses			2		4		(2)		(50)		–		25		(6)		–
Compensation and benefits			592		601		446		(1)		33		2,373		2,095		13
Other expenses			570		524		546		9		4		2,058		2,050		0
Restructuring charges			0		0		1		–		(100)		0		(2)		(100)
Total operating expenses			1,162		1,125		993		3		17		4,431		4,143		7
Income from continuing operations before taxes and minority interests			822		892		726		(8)		13		3,273		3,033		8
Income tax expense			164		152		105		8		56		595		541		10
Minority interests, net of tax			5		12		5		(58)		0		31		19		63
Net income			653		728		616		(10)		6		2,647		2,473		7

The following table presents key information of the Private Banking segment:

12 months

4Q2005

3Q2005

4Q2004

2005

2004

Cost/income ratio

58.5%

55.7%

57.8%

57.3%

57.8%

Gross margin

123.4 bp

130.9 bp

128.2 bp

129.2 bp

133.7 bp

of which asset-driven

76.8 bp

78.4 bp

84.1 bp

79.1 bp

81.9 bp

of which transaction-driven

40.9 bp

48.3 bp

39.2 bp

45.6 bp

45.0 bp

of which other

5.7 bp

4.2 bp

4.9 bp

4.5 bp

6.8 bp

Net margin

40.9 bp

47.9 bp

46.4 bp

44.8 bp

46.5 bp

Net new assets in CHF bn

8.6

14.3

3.9

42.7

26.4

Average allocated capital in CHF m

3,940

3,957

3,353

3,808

3,331

The following table outlines selected balance sheet and other data of the Private Banking segment:
			31.12.05		30.09.05		31.12.04		Change in % from 30.09.05		Change in % from 31.12.04
Assets under management in CHF bn			659.3		637.2		539.1		3.5		22.3
Total assets in CHF bn			233.8		222.0		188.7		5.3		23.9
Number of employees (full-time equivalents)			13,077		12,976		12,342		1		6

Net revenues were CHF 1,986 million in the fourth quarter of 2005, an increase of CHF 269 million, or 16%, versus the fourth quarter of 2004, but slightly lower than the high level of the previous quarter. The main drivers for the strong increase in net revenues compared to the fourth quarter of 2004 were significantly higher commissions and fees and increased trading revenues. Commissions and fees in the fourth quarter of 2005 were CHF 1,359 million, up CHF 210 million, or 18%, compared to the fourth quarter of 2004, reflecting higher commissions and fees related to the increase in assets under management, as well as higher brokerage volumes and product sales. Trading revenues in the fourth quarter of 2005 were CHF 212 million, an increase of CHF 99 million, or 88%, compared to the fourth quarter of 2004, mainly related to improved revenues from client foreign exchange trading. Net revenues for the full year 2005 increased to CHF 7,729 million, up CHF 559 million, or 8%, versus 2004. This improvement was driven by higher commissions and fees, reflecting the increase in assets under management and higher brokerage volumes, and higher trading revenues due to increased foreign exchange trading and trading execution, related to higher client transaction volume. Total operating expenses were CHF 1,162 million in the fourth quarter of 2005, an increase of CHF 169 million, or 17%, versus the fourth quarter of 2004. Compensation and benefits increased CHF 146 million, or 33%, primarily reflecting growth initiatives in strategic key markets and higher performance-related compensation, in line with higher pre-tax income in the fourth quarter of 2005, and a very low level of performance-related compensation in the fourth quarter of 2004. Other expenses increased CHF 24 million, or 4%, driven by higher commission expenses. For the full year 2005, total operating expenses were CHF 288 million, or 7%, above 2004, mainly due to increased performance-related compensation, in line with higher pre-tax income and ongoing strategic investments in growth markets including front-office recruiting. Income tax expense was CHF 164 million in the fourth quarter of 2005, an increase of CHF 59 million, or 56%, compared to the fourth quarter of 2004. This increase was primarily due to an unusually low tax rate in the fourth quarter of 2004, which was positively impacted by the release of tax contingency accruals following the favorable resolution of open matters. The cost/income ratio was 58.5% in the fourth quarter of 2005, 0.7 percentage points above the fourth quarter of 2004, as operating expenses, primarily compensation and benefits, increased at a higher rate than net revenues. For the full year 2005, the cost/income ratio was 57.3%, 0.5 percentage points below 2004, primarily reflecting higher revenues. The gross margin was 123.4 basis points in the fourth quarter of 2005, a decrease of 4.8 basis points compared to the fourth quarter of 2004. The gross margin for the full year 2005 was 129.2 basis points, in line with Private Banking's mid-term target of 130 basis points. Compared to 2004, the gross margin decreased 4.5 basis points. The decrease in both periods was mainly related to lower net interest income during the periods while the average assets under management increased significantly. The decrease in gross margin further reflects the temporary dilution effect from the strong growth in net new assets during the year. The margin is expected to increase over the following 18 to 24 months as the client relationship fully develops. Assets under management were CHF 659.3 billion as of December 31, 2005, an increase of CHF 22.1 billion, or 3%, compared to September 30, 2005, and CHF 120.2 billion, or 22%, compared to December 31, 2004. The main drivers of this growth were strong asset inflows of CHF 42.7 billion, the impact of favorable foreign exchange rate fluctuations and higher equity valuations. Net new assets were CHF 8.6 billion in the fourth quarter of 2005, with continued strong contributions from strategic key markets in Asia and the European onshore business.

Corporate & Retail Banking Corporate & Retail Banking offers banking products and services to corporate and retail clients in Switzerland. Corporate & Retail Banking reported net income of CHF 254 million in the fourth quarter of 2005, slightly below the fourth quarter of 2004. The slight decrease from the fourth quarter of 2004 reflected higher total operating expenses, offset in part by higher revenues and releases of provisions for credit losses. For the full year 2005, Corporate & Retail Banking reported a 19% increase in net income to CHF 1,069 million, a record result. This primarily reflected net releases of provisions in 2005 compared to net provisions for credit losses in 2004. Additionally, in 2005, Corporate & Retail Banking substantially improved its return on average allocated capital to 20.7%, compared to 18.0% in 2004. Net revenues were CHF 861 million in the fourth quarter of 2005, an increase of CHF 58 million, or 7%, compared to the fourth quarter of 2004 and slightly below the previous quarter. The strong increase compared to the fourth quarter of 2004 was primarily driven by higher trading revenues, which increased CHF 55 million, or 134%, mainly due to the positive impact of changes in the fair value of interest rate derivatives used for risk management purposes that did not qualify for hedge accounting. Net interest income increased CHF 27 million, or 5%, reflecting growth in mortgage volume. Commissions and fees increased CHF 11 million, or 5%, primarily reflecting higher product sales. Net revenues for the full year 2005 were CHF 3,458 million, up CHF 110 million, or 3%, compared to 2004, reflecting strong increases in commissions and fees from increased brokerage volumes, and increased trading revenues, mainly due to the positive impact of changes in the fair value of interest rate derivatives. Net interest income remained stable as an increase in lending volume was offset by pressure on asset and liability margins as a result of the low interest rate environment. Corporate & Retail Banking recorded net releases of provisions for credit losses of CHF 23 million in the fourth quarter of 2005, compared to net releases of CHF 6 million in the fourth quarter of 2004. For the full year 2005, net releases of CHF 96 million were recorded compared to net provisions of CHF 122 million in 2004. The releases of provisions reflected the ongoing favorable credit environment. Total impaired loans declined from CHF 3.7 billion at December 31, 2004, and from CHF 2.8 billion at September 30, 2005, to CHF 2.5 billion at December 31, 2005.

The following table presents the results of the Corporate & Retail Banking segment:
													12 months
in CHF m			4Q2005		3Q2005		4Q2004		Change in % from 3Q2005		Change in % from 4Q2004		2005		2004		Change in % from 2004
Net interest income			524		526		497		0		5		2,078		2,069		0
Commissions and fees			221		227		210		(3)		5		889		823		8
Trading revenues including realized gains/(losses) from investment securities, net			96		103		41		(7)		134		383		328		17
Other revenues			20		23		55		(13)		(64)		108		128		(16)
Total noninterest revenues			337		353		306		(5)		10		1,380		1,279		8
Net revenues			861		879		803		(2)		7		3,458		3,348		3
Provision for credit losses			(23)		(10)		(6)		130		283		(96)		122		–
Compensation and benefits			270		295		206		(8)		31		1,164		1,047		11
Other expenses			288		256		271		13		6		1,022		1,004		2
Total operating expenses			558		551		477		1		17		2,186		2,051		7
Income from continuing operations before taxes and minority interests			326		338		332		(4)		(2)		1,368		1,175		16
Income tax expense			71		74		74		(4)		(4)		297		272		9
Minority interests, net of tax			1		0		1		–		0		2		2		0
Net income			254		264		257		(4)		(1)		1,069		901		19

The following table presents key information of the Corporate & Retail Banking segment:
									12 months
			4Q2005		3Q2005		4Q2004		2005		2004
Cost/income ratio			64.8%		62.7%		59.4%		63.2%		61.3%
Net new assets in CHF bn			0.2		0.4		0.6		2.0		1.4
Return on average allocated capital			19.2%		19.8%		20.8%		20.7%		18.0%
Average allocated capital in CHF m			5,308		5,330		4,956		5,162		5,004

The following table outlines selected balance sheet and other data of the Corporate & Retail Banking segment:
			31.12.05		30.09.05		31.12.04		Change in % from 30.09.05		Change in % from 31.12.04
Assets under management in CHF bn			57.8		56.3		53.9		2.7		7.2
Total assets in CHF bn			111.0		111.4		99.5		0.0		11.6
Mortgages in CHF bn			66.3		65.6		63.0		1.1		5.2
Other loans in CHF bn			28.4		28.2		23.7		0.7		19.8
Number of branches			215		215		214		–		–
Number of employees (full-time equivalents)			8,469		8,404		8,314		1		2

Total operating expenses were CHF 558 million in the fourth quarter of 2005, an increase of CHF 81 million, or 17%, compared to the fourth quarter of 2004. Compensation and benefits were CHF 270 million, an increase of CHF 64 million, or 31%, compared to the fourth quarter of 2004, reflecting a low level of performance-related compensation in the fourth quarter of 2004. Other expenses in the fourth quarter of 2005 were CHF 17 million, or 6%, above the fourth quarter of 2004, primarily reflecting higher marketing costs. For the full year 2005, total operating expenses increased CHF 135 million, or 7%, compared to 2004, due to higher performance-related compensation in line with higher pre-tax income. Corporate & Retail Banking achieved a strong return on average allocated capital of 20.7% in 2005, an improvement of 2.7 percentage points compared to 2004 and well above the mid-term target of 15%. In the fourth quarter of 2005, the return on average allocated capital was 19.2%, a decrease of 1.6 percentage points compared to the fourth quarter of 2004. The cost/income ratio was 64.8% in the fourth quarter of 2005, 5.4 percentage points higher than in the fourth quarter of 2004 and 2.1 percentage points higher than in the previous quarter, driven by the increase in total operating expenses. The cost/income ratio for the full year 2005 was 63.2%, 1.9 percentage points higher than in 2004, primarily reflecting increased compensation and benefits. In 2005, Corporate & Retail Banking further expanded its Swiss residential mortgage business, reporting growth of approximately 9%. The growth in this business reflected increased marketing efforts and a wide range of mortgage products.

Institutional Securities Institutional Securities provides securities and investment banking services to institutional, corporate and government clients worldwide. Institutional Securities reported net income of CHF 336 million in the fourth quarter of 2005, an increase of CHF 67 million, or 25%, compared to the fourth quarter of 2004. Net revenues were CHF 3,622 million, up CHF 716 million, or 25%, compared to the fourth quarter of 2004, reflecting higher investment banking and trading revenues and the impact of foreign exchange translation into Swiss francs due to the strengthening of the US dollar against the Swiss franc. This improvement reflected a significant CHF 445 million, or 62%, increase in investment banking net revenues, a direct result of a continued focus on high-margin products and increased industry-wide activity. This improvement was offset by a CHF 708 million, or 27%, increase in operating expenses, driven largely by the foreign exchange translation impact and increased compensation accruals in line with higher net revenues. Net income was positively impacted by certain tax-related items that resulted in a CHF 132 million tax benefit in the fourth quarter of 2005. These include the release of tax contingency accruals due to the favorable settlement of certain tax audits and a decrease in the full-year effective tax rate below the rate used to accrue taxes during prior quarters in 2005 as a result of changes in the geographic mix of taxable income. Fourth quarter 2004 net income was positively impacted by a net credit release of CHF 118 million. Institutional Securities’ net income in the fourth quarter of 2005 decreased CHF 276 million, or 45%, compared to the strong third quarter, primarily reflecting lower trading revenues in a generally less favorable market environment.

The following table presents the results of the Institutional Securities segment:
													12 months
in CHF m			4Q2005		3Q2005		4Q2004		Change in % from 3Q2005		Change in % from 4Q2004		2005		2004		Change in % from 2004
Net interest income			428		713		827		(40)		(48)		3,159		3,720		(15)
Investment banking			1,163		1,126		718		3		62		3,864		3,328		16
Commissions and fees			720		681		649		6		11		2,663		2,702		(1)
Trading revenues including realized gains/(losses) from investment securities, net			1,096		1,617		626		(32)		75		4,491		2,680		68
Other revenues			215		166		86		30		150		925		690		34
Total noninterest revenues			3,194		3,590		2,079		(11)		54		11,943		9,400		27
Net revenues			3,622		4,303		2,906		(16)		25		15,102		13,120		15
Provision for credit losses			(12)		(41)		(118)		(71)		(90)		(73)		(35)		109
Compensation and benefits			2,019		2,278		1,600		(11)		26		8,264		7,429		11
Other expenses			1,328		1,121		1,039		18		28		5,379		3,946		36
Total operating expenses			3,347		3,399		2,639		(2)		27		13,643		11,375		20
Income from continuing operations before taxes, minority interests and cumulative effect of accounting changes			287		945		385		(70)		(25)		1,532		1,780		(14)
Income tax expense/(benefit)			(132)		248		130		–		–		93		344		(73)
Minority interests, net of tax			83		85		(14)		(2)		–		371		123		202
Income from continuing operations before cumulative effect of accounting changes			336		612		269		(45)		25		1,068		1,313		(19)
Cumulative effect of accounting changes, net of tax			0		0		0		–		–		12		0		–
Net income			336		612		269		(45)		25		1,080		1,313		(18)

The following table presents key information of the Institutional Securities segment:
									12 months
			4Q2005		3Q2005		4Q2004		2005		2004
Cost/income ratio			92.4%		79.0%		90.8%		90.3%		86.7%
Compensation/revenue ratio			55.7%		52.9%		55.1%		54.7%		56.6%
Pre-tax margin			7.9%		22.0%		13.2%		10.1%		13.6%
Return on average allocated capital			9.3%		18.0%		10.3%		8.6%		12.8%
Average allocated capital in CHF m			14,391		13,568		10,485		12,545		10,261
Other data excluding minority interests
Cost/income ratio  1) 2)			94.6%		80.6%		90.4%		92.6%		87.5%
Compensation/revenue ratio  1)			57.1%		54.0%		54.8%		56.1%		57.2%
Pre-tax margin 1) 2)			5.8%		20.4%		13.7%		7.9%		12.7%
1) Excluding CHF 86 million, CHF 85 million, CHF -13 million, CHF 379 million and CHF 128 million in 4Q2005, 3Q2005, 4Q2004, 12 months 2005 and 12 months 2004, respectively, in minority interest revenues relating primarily to the FIN 46R consolidation.
2) Excluding CHF 3 million, CHF 0 million, CHF 1 million, CHF 8 million and CHF 5 million in 4Q2005, 3Q2005 and 4Q2004, 12 months 2005 and 12 months 2004, respectively, in minority interest expenses relating primarily to the FIN 46R consolidation.

The following table outlines selected balance sheet and other data of the Institutional Securities segment:
			31.12.05		30.09.05		31.12.04		Change in % from 30.09.05		Change in % from 31.12.04
Total assets in CHF bn			911.8		898.1		707.9		1.5		28.8
Number of employees (full-time equivalents)			18,809		17,787		16,498		6		14

For the full year 2005, Institutional Securities’ net income was CHF 1,080 million, a decrease of CHF 233 million, or 18%, compared to 2004. Excluding the CHF 624 million after-tax charge in the second quarter of 2005 to increase the reserve for certain private litigation matters, net income for the full year was CHF 1,704 million, an increase of CHF 391 million, or 30%, compared to the full year 2004. The pre-tax margin (excluding minority interest-related revenues and expenses) for the fourth quarter of 2005 was 5.8% compared to 13.7% for the fourth quarter of 2004. The pre-tax margin (excluding minority interest-related revenues and expenses) for the full year 2005 decreased to 7.9% from 12.7% in 2004. Excluding the impact of the CHF 960 million pre-tax litigation charge in the second quarter of 2005, Institutional Securities demonstrated progress for the full year 2005 with the pre-tax margin (excluding minority interest-related revenues and expenses) increasing to 14.4% from 12.7% for the full year 2004. As Institutional Securities’ businesses are managed on a US dollar basis, the strengthening of the US dollar against the Swiss franc from the fourth quarter of 2004 favorably impacted revenues and adversely affected expenses. In particular, net revenues in the fourth quarter of 2005, when translated into Swiss francs, were up 25% versus the fourth quarter of 2004, while in US dollar terms, they increased 12%. Similarly, total operating expenses, when translated into Swiss francs, were up 27%, while in US dollar terms they increased 14%. Net revenues were CHF 3,622 million in the fourth quarter of 2005, up CHF 716 million, or 25%, compared to the fourth quarter of 2004, reflecting significantly higher revenues from underwriting and advisory and other fees, higher trading revenues and the foreign exchange translation impact of CHF 367 million resulting from the strengthening of the US dollar against the Swiss franc. Excluding minority interest-related revenues, net revenues increased CHF 617 million, or 21%. These improved revenues reflect Institutional Securities’ strategy of delivering a more focused franchise. Compared to the third quarter of 2005, net revenues were down CHF 681 million, or 16%, due primarily to weaker trading results in a generally less favorable market environment. For the full year 2005, Institutional Securities reported net revenues of CHF 15,102 million, up CHF 1,982 million, or 15%, versus 2004, reflecting higher investment banking and trading revenues. This demonstrates Institutional Securities’ strength and leadership position in key business areas, including initial public offerings, leveraged finance, advanced execution services, emerging markets, prime brokerage and the increasingly important financial sponsor client base. Provision for credit losses amounted to a net release of credit provisions of CHF 12 million in the fourth quarter of 2005, reflecting the continued favorable credit environment for lenders. This compares to a net release of CHF 118 million in the fourth quarter of 2004, which included a significant recovery from the sale of an impaired loan. Net credit releases for the full year 2005 were CHF 73 million, up from CHF 35 million in 2004. Compared to September 30, 2005, total impaired loans decreased CHF 72 million to CHF 512 million, and valuation allowances as a percentage of total impaired loans increased 18.6 percentage points to 89.1% as of December 31, 2005. Total operating expenses were CHF 3,347 million in the fourth quarter of 2005, up CHF 708 million, or 27%, versus the fourth quarter of 2004. Compensation and benefits expense increased CHF 419 million, or 26%, primarily reflecting higher compensation accruals in line with higher net revenues and the foreign exchange translation impact of CHF 208 million resulting from the strengthening of the US dollar against the Swiss franc. Other expenses increased CHF 289 million, or 28%, reflecting a foreign exchange translation impact of CHF 124 million, as well as a CHF 60 million lower insurance settlement than in the fourth quarter of 2004. Additional specific drivers of other expenses in the fourth quarter of 2005 were a contingency accrual of CHF 28 million for value-added tax and CHF 24 million for premiums paid for policies acquired in the expanded life insurance finance business. Revenues from this business will not be realized until future periods. The Financial Accounting Standards Board is expected to issue new guidance in early 2006 that would permit the policies acquired in this business to be carried at fair value and, as a result, premium costs would be capitalized rather than being expensed as incurred. For the full year 2005, Institutional Securities reported total operating expenses of CHF 13,643 million, an increase of CHF 2,268 million, or 20%, versus 2004. This included the impact of the CHF 960 million charge in the second quarter of 2005 to increase the reserve for certain private litigation matters. Excluding the impact of this litigation charge, total operating expenses in 2005 increased CHF 1,308 million, or 11%, reflecting an increase in compensation and benefits and other expenses, partially offset by lower severance costs.

The following table presents the revenue details of the Institutional Securities segment:
													12 months
in CHF m			4Q2005		3Q2005		4Q2004		Change in % from 3Q2005		Change in % from 4Q2004		2005		2004		Change in % from 2004
Debt underwriting			498		482		303		3		64		1,751		1,620		8
Equity underwriting			344		263		199		31		73		930		745		25
Underwriting			842		745		502		13		68		2,681		2,365		13
Advisory and other fees			321		381		216		(16)		49		1,183		963		23
Total investment banking			1,163		1,126		718		3		62		3,864		3,328		16
Fixed income			1,341		1,770		1,278		(24)		5		6,231		5,507		13
Equity			966		1,239		828		(22)		17		3,965		3,472		14
Total trading			2,307		3,009		2,106		(23)		10		10,196		8,979		14
Other (including loan portfolio)			152		168		82		(10)		85		1,042		813		28
Net revenues			3,622		4,303		2,906		(16)		25		15,102		13,120		15

Total investment banking revenues include debt underwriting, equity underwriting and advisory and other fees. In the fourth quarter of 2005, investment banking revenues totaled CHF 1,163 million, up CHF 445 million, or 62%, versus the fourth quarter of 2004, reflecting a CHF 340 million, or 68%, increase in underwriting fees and a CHF 105 million, or 49%, increase in advisory and other fees. This strong investment banking performance reflected the impact of the newly established financing platform, which integrated the capital markets, leveraged finance origination and structuring teams. Institutional Securities also benefited from a leading position in the financial sponsors business. Debt underwriting revenues in the fourth quarter of 2005 were CHF 498 million, up CHF 195 million, or 64%, compared to the fourth quarter of 2004, reflecting primarily higher results in the leveraged finance and structured products businesses. For the full year 2005, debt underwriting revenues were CHF 1,751 million, up CHF 131 million, or 8%, versus 2004. The leveraged finance franchise remained strong as corporate issuance continued to shift from the high-yield securities market to the syndicated loan market. For the full year 2005, Institutional Securities ranked third in global high-yield securities new issuance volumes. International Financing Review named Institutional Securities the US Leveraged Loan House and the US Loan Trading House of the Year. In Europe, Institutional Securities won High Yield House of the Year from Financial News , and in Asia, FinanceAsia recognized Institutional Securities as Best High Yield Bond House in the region. Institutional Securities’ emerging markets leadership was recognized by International Financing Review , winning Emerging Market Bond House and Latin American Bond House of 2005. Institutional Securities ranked tenth in global investment grade new issuance volumes for the full year 2005, down from third in 2004, but reported a substantial improvement in the profitability of the business consistent with its strategy. Equity underwriting revenues were CHF 344 million in the fourth quarter of 2005, an increase of CHF 145 million, or 73%, compared to the fourth quarter of 2004. For the full year 2005, equity underwriting revenues were CHF 930 million, up CHF 185 million, or 25%, versus 2004. These improvements were due to higher industry-wide equity issuance activity and increased initial public offering market share in the Americas and Europe. This strong result underscores Institutional Securities’ leadership position in initial public offerings, ranking first in global market share for the full year 2005. Institutional Securities also ranked first in initial public offering market share in the Americas and Europe, Middle East and Africa (EMEA) for the full year 2005. Institutional Securities participated in a number of high profile transactions in the fourth quarter of 2005, including the initial public offering for China Construction Bank Corporation, the world’s largest initial public offering since 2001 and the largest initial public offering ever in China and in Non-Japan Asia. Other key transactions in the quarter highlighted the success of the equity franchise across a broad spectrum of industries and included initial public offerings for Goodman Fielder Ltd. (an Australian food company), Tokyo Star Bank (a Japanese regional bank) and Kazakhmys Plc (a global copper miner and refiner). Advisory and other fees of CHF 321 million in the fourth quarter of 2005 were up CHF 105 million, or 49%, compared to the fourth quarter of 2004. This increase was primarily due to higher industry-wide activity and increased market share in both global announced and completed mergers and acquisitions. Advisory and other fees declined CHF 60 million, or 16%, compared to the strong third quarter of 2005, which included a number of high-fee transactions. For the full year 2005, advisory and other fees increased CHF 220 million, or 23%, to CHF 1,183 million versus 2004, primarily due to an increase in industry-wide activity and increased market share. For the full year 2005, Institutional Securities ranked tenth in global announced mergers and acquisitions (up from eleventh in 2004) and eighth in global completed mergers and acquisitions (up from ninth in 2004). Notable transactions announced in the fourth quarter of 2005 reflected the breadth of Institutional Securities’ advisory business as well as its strength in the financial sponsors business and included the Apax Partners, Inc. acquisition of Tommy Hilfiger Corporation, the sale of Accellent, Inc. to Kohlberg Kravis Roberts & Company, the sale of Scientific-Atlanta, Inc. to Cisco Systems Inc. and the sale of Alliance UniChem Plc to Boots Group Plc. Total trading revenues include results from fixed income and equity sales and trading. Total trading revenues for the fourth quarter of 2005 were CHF 2,307 million, up CHF 201 million, or 10%, compared to the fourth quarter of 2004 and CHF 702 million, or 23%, lower compared to the third quarter of 2005, which was characterized by an unusually strong market environment as the typical summer slowdown did not materialize. For the full year 2005, total trading revenues increased CHF 1,217 million, or 14%, to CHF 10,196 million versus 2004, reflecting improved results in both fixed income and equity trading. These results highlight Institutional Securities’ strength in key strategic areas including commercial and residential mortgage-backed securities, emerging markets and prime services. Institutional Securities’ average daily VaR in the fourth quarter of 2005 was CHF 71 million, up from CHF 53 million in the fourth quarter of 2004 and up from CHF 63 million in the third quarter of 2005. The increase in average VaR from the third quarter of 2005 was due to an increase in equity risk mainly from an increase in equity trading positions. The increase in equity risk was partially offset by a reduction in interest rate VaR due to reduced volatility observed over the last two years in the dataset used to compute VaR. Average allocated capital increased CHF 3.9 billion versus the fourth quarter of 2004 and CHF 0.8 billion versus the third quarter of 2005, in line with the strategy to extend incremental capital to support high-growth and high-margin activities. Fixed income trading generated revenues of CHF 1,341 million in the fourth quarter of 2005, an increase of CHF 63 million, or 5%, compared to the fourth quarter of 2004. The market environment in the fourth quarter of 2005 was challenging for many products as the yield curve continued to flatten and credit spreads widened. Reduced hedge fund activity negatively impacted customer-driven transaction revenues in the rate and credit products businesses. The increase in fixed income trading revenues versus the fourth quarter of 2004 primarily reflected improved performance in the commercial mortgage-backed securities and collateralized debt obligations businesses, both of which benefited from an increase in the volume of transactions that closed in the fourth quarter of 2005. These results were partially offset by weaker results in global foreign exchange positioning, emerging markets trading, US high grade and leveraged finance. Compared to the third quarter of 2005, fixed income trading revenues declined CHF 429 million, or 24%, resulting primarily from lower residential mortgage-backed securities revenues due to the CHF 216 million positive adjustment resulting from a change in the estimate of fair value of retained interests in residential mortgage-backed securities in the third quarter of 2005 and lower emerging markets trading, high grade and leveraged finance revenues. Fixed income trading revenues for the full year 2005 increased CHF 724 million, or 13%, to CHF 6,231 million versus 2004. The full-year results reflected improvements in commercial and residential mortgage-backed securities and Latin America and other emerging markets trading, all of which are key growth areas in the industry, partially offset by weaker results in US high grade and global foreign exchange positioning. Equity trading revenues increased CHF 138 million, or 17%, to CHF 966 million in the fourth quarter of 2005 versus the fourth quarter of 2004, reflecting higher revenues in prime services, partially offset by lower revenues in equity derivatives and equity proprietory trading. Advanced execution services continued to experience strong growth, and the platform was recognized as the number one algorithmic trading platform in the market according to the 2005 US Equity Trading Survey published by Institutional Investor . Equity trading revenues decreased CHF 273 million, or 22%, compared to the third quarter of 2005, with lower revenues recorded in most business areas. Market conditions in the convertibles business continued to be difficult with low levels of volatility and issuance for most of the fourth quarter of 2005. For the full year 2005, equity trading revenues increased CHF 493 million, or 14%, to CHF 3,965 million versus 2004. These results reflected higher revenues in prime services, the global cash business and equity proprietory trading, partially offset by lower revenues in the convertibles and derivatives businesses. Other (including loan portfolio) revenues of CHF 152 million in the fourth quarter of 2005 increased CHF 70 million, or 85%, compared to the fourth quarter of 2004. For the full year 2005, other (including loan portfolio) revenues of CHF 1,042 million were up CHF 229 million, or 28%, compared to the full year 2004. These increases were due to higher minority interest-related revenues.

Wealth & Asset Management Wealth & Asset Management offers international asset management services – including a broad range of investment funds – to institutional and private investors. It also provides financial advisory services to wealthy individuals and corporate clients. Wealth & Asset Management comprises Credit Suisse Asset Management, Alternative Capital, Private Client Services and Other. Wealth & Asset Management reported net income of CHF 182 million in the fourth quarter of 2005, an increase of CHF 119 million, or 189%, compared to the fourth quarter of 2004, due primarily to higher revenues in all key business areas and lower severance costs, offset in part by higher other expenses. Net income increased CHF 81 million, or 80%, compared to the third quarter of 2005, reflecting higher revenues in Alternative Capital and Credit Suisse Asset Management, offset in part by higher other expenses. For the full year 2005, net income increased CHF 133 million, or 25%, to CHF 663 million versus 2004. The full year results were driven primarily by a higher level of investment-related gains in Alternative Capital.

The following table presents the results of the Wealth & Asset Management segment:

12 months

in CHF m

4Q2005

3Q2005

4Q2004

Change in % from 3Q2005

Change in % from 4Q2004

2005

2004

Change in % from 2004

Net interest income

(3)

11

14

–

–

29

55