UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

---

Form 6-K

---

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 15, 2007

 

Commission File Number 001-15244

CREDIT SUISSE GROUP

(Translation of registrant’s name into English)

Paradeplatz 8, P.O. Box 1, CH-8070 Zurich, Switzerland

(Address of principal executive office)

---

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.           

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-.

 

 

 

 

Media Release

 

Credit Suisse Group Reports Net Income of CHF 11.3 Billion for 2006

 

Credit Suisse Group today reported net income of CHF 11,327 million for the full year 2006, up 94% compared to net income of CHF 5,850 million for 2005. Net income for 2006 included a net capital gain of CHF 1,817 million from the sale of Winterthur, which was recorded in the fourth quarter.

 

Basic earnings per share from continuing operations were CHF 7.53 for the full year 2006, compared to CHF 3.98 for 2005. Basic earnings per share were CHF 10.30 for the full year 2006, compared to CHF 5.17 for 2005.

 

Fourth-quarter 2006 net income totaled CHF 4,673 million, compared to net income of CHF 1,103 million in the fourth quarter of 2005.

 

Credit Suisse recorded net new assets of CHF 95.4 billion for the full year 2006.

 

Zurich, February 15, 2007 "2006 was a record year for Credit Suisse. Our integrated banking model proved successful and provided us with an effective platform to capture the growth opportunities arising from high levels of client activity, while at the same time significantly improving our profitability," stated Oswald J. Grübel, CEO of Credit Suisse.

 

He added: "In our first year as an integrated bank, we have made excellent progress in strengthening our operating efficiency but there is still great potential for further improvement as we continue to invest in the growth of our business."

 

He concluded: "Our clients have responded well to our integrated approach and Credit Suisse now has excellent opportunities for further growth in the context of globalization, which we believe will create dynamic markets for the foreseeable future."

 

 

 

Investment Banking

The Investment Banking segment reported record income from continuing operations before taxes of CHF 5,951 million for the full year 2006, an increase of CHF 4,352 million compared to 2005, with strong contributions across the underwriting, advisory, fixed income trading and equity trading businesses. Excluding the CHF 508 million of credits from insurance settlements for litigation and related costs in 2006 and the CHF 960 million charge to increase litigation reserves in 2005, income from continuing operations before taxes rose 113% in 2006. Net revenues increased 32% to a record level in 2006, driven by a strong performance across all key business areas and regions amid favorable market conditions, high levels of deal activity and improved market share in certain products. Total operating expenses for the full year increased 4%, or 15% excluding the insurance settlements and litigation charge. The compensation/revenue ratio was 50.1% in 2006, compared to 55.5% for 2005. The pre-tax income margin was 29.1%, or 26.6% excluding the insurance settlements, compared to 16.5% excluding the litigation charge in 2005.

 

In the fourth quarter of 2006, income from continuing operations before taxes totaled a record CHF 2,342 million, an increase of CHF 2,056 million compared to the fourth quarter of 2005. Net revenues grew 63% to a record level in the fourth quarter of 2006, benefiting from strong performances in both the investment banking and trading businesses. Total operating expenses rose 8% compared to the fourth quarter of 2005, primarily reflecting higher compensation expenses in line with higher revenues, partly offset by a decrease in other expenses due to improvements in operating efficiency. The compensation/revenue ratio was 42.2% in the fourth quarter of 2006, compared to 53.5% in the first three quarters of the year. The pre-tax income margin was 38.5% in the fourth quarter of 2006, compared to 7.7% in the fourth quarter of 2005.

 

Private Banking

The Private Banking segment, which comprises the Wealth Management and Corporate & Retail Banking businesses, reported record income from continuing operations before taxes of CHF 4,596 million for the full year 2006, an increase of 16% compared to 2005.

In the fourth quarter of 2006, income from continuing operations before taxes was CHF 1,143 million, an increase of 11% compared to the fourth quarter of 2005.

 

 

The Wealth Management business reported record income from continuing operations before taxes of CHF 3,237 million for the full year 2006, an improvement of 22% compared to 2005. Net revenues grew 15% and total operating expenses rose 12%. The pre-tax income margin was 39.6% for 2006, compared to 37.3% in 2005.

 

In the fourth quarter of 2006, income from continuing operations before taxes amounted to CHF 811 million, up 15% from the fourth quarter of 2005. This increase reflected strong net revenues driven by higher commissions and fees, mainly from brokerage, product issuances and asset-based fees, as well as higher net interest income from higher liability margins and liability volumes. The growth in net revenues more than offset a 10% rise in total operating expenses, driven primarily by higher personnel expenses related to strategic investments in the global business and higher performance-related compensation expenses. The pre-tax income margin was 39.0% for the fourth quarter of 2006, compared to 37.6% in the fourth quarter of 2005.

 

The Corporate & Retail Banking business reported a 4% increase in income from continuing operations before taxes to CHF 1,359 million for the full year 2006, compared to 2005. Net revenues increased 4% in 2006 and total operating expenses rose 1%. The pre-tax income margin was 38.9% for 2006, compared to 38.7% in 2005.

 

In the fourth quarter of 2006, income from continuing operations before taxes was CHF 332 million, an increase of 3%, compared to the same period of 2005. Net revenues grew 6%, driven by higher asset-based commissions and fees and increased net interest income. Total operating expenses rose by 7% due to higher compensation and benefits, primarily reflecting higher performance-related compensation expenses. The pre-tax income margin was 37.1% for the fourth quarter of 2006, compared to 38.0% in the fourth quarter of 2005.

 

Asset Management

The Asset Management segment reported income from continuing operations before taxes of CHF 508 million for the full year 2006, a decline of 50% compared to 2005. This decrease reflects lower private equity and other investment-related gains, which are cyclical in nature, and higher operating expenses, partly due to the realignment of the business in 2006. Net revenues rose 2% compared to the previous year and net revenues before private equity and other investment-related gains grew 12%, reflecting the growth in assets under management. Private equity and other investment-related gains totaled CHF 502 million in 2006, a decrease of 28% from 2005. Total operating expenses rose 31% in 2006, including CHF 225 million of realignment costs. The pre-tax income margin was 17.8% for 2006, compared to 35.9% in 2005. As of December 31, 2006, assets under management totaled CHF 669.9 billion, an increase of 14% from December 31, 2005.

 

In the fourth quarter of 2006, income from continuing operations before taxes totaled CHF 89 million, a decrease of 63% compared to the fourth quarter of 2005. Net revenues declined 3% in the fourth quarter of 2006 compared to the same period of the previous year. Net revenues before private equity and other investment-related gains improved by 18%, compared to the fourth quarter of 2005, reflecting the growth in assets under management. Private equity and other investment-related gains totaled CHF 92 million in the fourth quarter of 2006, a decrease of 56% compared to the same period of 2005. Total operating expenses increased 26% in the fourth quarter of 2006, primarily reflecting higher compensation and benefits related to the ongoing efforts to hire new investment talent and build product development and

 

 

distribution capabilities and other expenses related to the realignment of Asset Management. The pre-tax income margin was 12.1% for the fourth quarter of 2006, compared to 31.8% in the fourth quarter of 2005. Credit Suisse continued to realign Asset Management in the fourth quarter of 2006 as part of the previously announced strategy to reposition businesses with low profitability, reshape the product offering, improve investment and sales processes, and reduce the overall cost base.

 

Net New Assets

The Wealth Management business generated CHF 50.5 billion of net new assets in 2006, an increase of 18% compared to 2005. In the fourth quarter of 2006, Wealth Management recorded CHF 8.6 billion of net new assets. The Asset Management business reported CHF 50.8 billion of net new assets in 2006, including money market assets of CHF 33.4 billion and alternative investment assets of CHF 12.5 billion. In the fourth quarter, Asset Management recorded a net outflow of CHF 2.9 billion. Overall, Credit Suisse recorded CHF 95.4 billion of net new assets for the full year 2006, including net new assets of CHF 6.9 billion in the fourth quarter. Total assets under management were CHF 1,485.1 billion as of December 31, 2006, an increase of 13% from December 31, 2005.

 

Sale of the Insurance Business

On December 22, 2006, Credit Suisse Group completed the sale of Winterthur for cash consideration of CHF 12.3 billion. The Group realized a net capital gain of CHF 1,817 million on the transaction. As a result of the sale of Winterthur, the results of Winterthur’s operations are reported as income from discontinued operations, net of tax. Income from discontinued operations in the fourth quarter of 2006 was CHF 2,074 million, including the gain from the sale. For the full year 2006, income from discontinued operations was CHF 3,070 million, compared to CHF 1,310 million for the full year 2005.

 

Dividend Proposal and Share Repurchase Program

The Board of Directors of Credit Suisse Group will propose a cash dividend of CHF 2.24 per share for the financial year 2006 and a par value reduction of CHF 0.46 per share at the Annual General Meeting on May 4, 2007. This compares to a dividend of CHF 2.00 per share for the financial year 2005.

 

The Board of Directors will also propose a share repurchase program of up to CHF 8 billion at the Annual General Meeting. Subject to the approval of shareholders, the program will commence after the Annual General Meeting and run for a maximum of three years.

 

Outlook

Credit Suisse believes that the growth prospects for the global economy will remain good and expects client activity to continue at around the levels of 2006. Interest rates are unlikely to increase significantly and valuations for equities are still relatively low. High corporate earnings will attract capital flows into the equity markets, which will continue to trend higher with occasional corrections. Credit Suisse has had a good start to 2007 and is well positioned to capture these growth opportunities with its integrated banking model.

 

Information

Media Relations Credit Suisse, telephone +41 844 33 88 44, media.relations@credit-suisse.com

Investor Relations Credit Suisse, telephone +41 44 333 71 49, investor.relations@credit-suisse.com

 

 

For additional information on Credit Suisse Group’s fourth-quarter and full-year 2006 results, please refer to the Group’s Quarterly Report Q4/2006, 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

As one of the world's leading banks, Credit Suisse 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 is active in over 50 countries and employs approximately 45,000 people. Credit Suisse's parent company, Credit Suisse Group, is a leading global financial services company headquartered in Zurich. Credit Suisse Group's registered shares (CSGN) are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

 

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 implement procedures properly; (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 brand; (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 acquired businesses successfully, and divestitures, including the ability to sell non-core assets; (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.

 

 

Presentation of the fourth-quarter and full-year 2006 results

 

Analyst and Media Conference

 

Credit Suisse Forum St. Peter, Zurich

 

 

Oswald J. Grübel, Chief Executive Officer of Credit Suisse

 

Live broadcast at: www.credit-suisse.com/results

Video playback available approximately 3 hours after the event

 

+1 866 291 4166 (US); ask for "Credit Suisse Group quarterly results".

Please dial in 10-15 minutes before the start of the presentation.

 

+44 207 108 6233 (UK) and +1 866 416 2558 (US); conference ID English – 596#, conference

ID German – 311#.

 

 

 

 

Credit Suisse Group

Quarterly Report 2006/Q4

Cover: Manish Kumar, Investment Banking (CMOS), New York Photographer: John Wildgoose

Financial calendar : please see inside back cover.

Credit Suisse Group financial highlights
													12 months
in CHF m, except where indicated			4Q 2006		3Q 2006		4Q 2005		Change in % from 3Q 2006		Change in % from 4Q 2005		2006		2005		Change in % from 2005
Consolidated statements of income
Net revenues			10,814		8,076		7,566		34		43		38,603		30,489		27
Income from continuing operations before taxes,minority interests, extraordinary items andcumulative effect of accounting changes			4,314		2,460		1,059		75		307		14,300		7,401		93
Income from continuing operations beforeextraordinary items and cumulative effectof accounting changes			2,599		1,468		677		77		284		8,281		4,526		83
Income from discontinued operations, net of tax			2,074		424		426		389		387		3,070		1,310		134
Net income			4,673		1,892		1,103		147		324		11,327		5,850		94
Return on equity			44.1%		18.9%		11.2%		–		–		27.5%		15.4%		–
Earnings per share, in CHF
Basic earnings per share from continuing operationsbefore cumulative effect of accounting changes			2.42		1.35		0.59		–		–		7.53		3.98		–
Basic earnings per share			4.35		1.74		0.98		–		–		10.30		5.17		–
Diluted earnings per share from continuing operationsbefore cumulative effect of accounting changes			2.29		1.29		0.59		–		–		7.19		3.90		–
Diluted earnings per share			4.12		1.67		0.95						9.83		5.02
Cost/income ratio – reported			60.3%		70.0%		86.5%		–		–		63.2%		76.2%		–
Cost/income ratio1)			65.7%		75.9%		93.1%		–		–		69.6%		81.6%		–
Net new assets, in CHF bn			6.9		31.1		8.0		–		–		95.4		57.4		–

in CHF m, except where indicated			31.12.06		30.09.06		31.12.05		Change in % from 30.09.06		Change in % from 31.12.05
Assets under management, in CHF bn			1,485.1		1,441.3		1,319.4		3.0		12.6
Consolidated balance sheets
Total assets			1,255,956	2)	1,473,113		1,339,052		(15)		(6)
Shareholders' equity			43,586		41,643		42,118		5		3
Consolidated BIS capital data
Risk-weighted assets			253,676		252,139		232,891		1		9
Tier 1 ratio			13.9%		10.8%		11.3%		–		–
Total capital ratio			18.4%		13.2%		13.7%		–		–
Number of employees
Switzerland – Banking			20,353		20,261		20,194		0		1
Outside Switzerland – Banking			24,518		24,456		24,370		0		1
Winterthur			0	2)	18,984		18,959		–		–
Number of employees (full-time equivalents)			44,871		63,701		63,523		(30)		(29)
Stock market data
Share price per common share, in CHF			85.25		72.35		67.00		18		27
High (closing price) year-to-date, in CHF			85.35		74.20		68.50		15		25
Low (closing price) year-to-date, in CHF			62.70		62.70		46.85		0		34
Share price per American Depositary Share, in USD			69.85		57.95		50.95		21		37
Market capitalization, in CHF m			90,575		77,946		75,399		16		20
Market capitalization, in USD m			74,213		62,432		57,337		19		29
Book value per share, in CHF			41.02		38.65		37.43		6		10
Share information
Shares issued			1,214,862,013		1,214,054,870		1,247,752,166		0		(3)
Treasury shares			(152,394,952)		(136,710,156)		(122,391,983)		11		25
Shares outstanding			1,062,467,061		1,077,344,714		1,125,360,183		(1)		(6)
1) Excludes minority interest revenues of CHF 998 million, CHF 640 million, CHF 554 million, CHF 3,663 million and CHF 2,074 million and minority interest expenses of CHF 71 million, CHF 10 million, CHF 15 million, CHF 103 million and CHF 32 million in 4Q 2006, 3Q 2006, 4Q 2005, 12 months 2006 and 12 months 2005, respectively, from the consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest in such revenues and expenses. 2) The Group completed the sale of Winterthur to AXA on December 22, 2006.

Contents

Credit Suisse Group
Contents
Enquiries
Message from the Chief Executive Officer
Dear shareholders, clients and colleagues
Strong annual results with basic earnings per share from continuing operations of CHF 7.53
Returning capital to our shareholders
Investment Banking delivers strong results
Continued expansion in Private Banking
Realignment of Asset Management
Strategic priorities going forward
Outlook
Credit Suisse Group
Summary of segment results
Investment Banking
Private Banking
Asset Management
Credit Suisse Group consolidated results
Net revenues
Provision for credit losses
Total operating expenses
Income tax expense
Minority interests
Discontinued operations
Recent developments
Dividend proposal and share repurchase program
Factors affecting results of operations
Credit Suisse Group structure
Investment Banking
Private Banking
Wealth Management
Corporate & Retail Banking
Asset Management
Assets under management
Assets under management
Client assets
Net new assets
Capital
Credit Suisse Group
Credit Suisse
Risk management

Economic Risk Capital trends
Trading risks
Loan exposure
Condensed consolidated financial statements
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
Recently adopted accounting standards
EITF 04-5, FSP SOP 78-9-1 and EITF 96-16
SFAS 123R
SFAS 154
SFAS 155
SFAS 156
FSP FTB 85-4-1
FSP FIN 46(R)-6
SFAS 158
SAB 108
Standards to be adopted in future periods
FIN 48
SFAS 157
Discontinued operations
Segment reporting
Interest and dividend income and interest expense
Trading activities
Commissions and fees
Loans
Accumulated other comprehensive income
Earnings per share
Pension
Guarantees and commitments
Guarantees
Disposal-related contingencies and other indemnifications
Disposal-related contingencies
Other indemnifications
Other commitments
Variable interest entities
Collateralized debt obligations
Commercial paper conduits
Financial intermediation
Litigation
Information for investors
Foreign currency translation rates
Cautionary statement regarding forward-looking information

Enquiries

Credit Suisse Group Investor Relations Ian Roundell, Marc Buchheister Tel. +41 44 333 7149 Fax +41 44 333 2587 investor.relations@credit-suisse.com Credit Suisse Group Media Relations Charles Naylor, Andrés Luther Tel. +41 844 33 8844 Fax +41 44 333 8877 media.relations@credit-suisse.com

Message from the Chief Executive Officer

Oswald J. Grübel

Chief Executive Officer

Dear shareholders, clients and colleagues

2006 was a record year for Credit Suisse. Our integrated banking model proved successful and provided us with an effective platform to capture the growth opportunities arising from high levels of client activity while significantly improving our profitability. We are particularly pleased with our performance in Investment Banking. In our first year as an integrated bank we made excellent progress in strengthening our operating efficiency but there is still great potential for further improvement as we continue to invest in the growth of our business. Our clients have responded well to our integrated approach and Credit Suisse now has excellent opportunities for further growth in the context of globalization, which we believe will create dynamic markets for the foreseeable future.

Strong annual results with basic earnings per share from continuing operations of CHF 7.53

Credit Suisse Group reported a significant improvement in profitability in 2006, driven by good net revenues and improved operating efficiency. Net income totaled CHF 11.3 billion, including a net capital gain of CHF 1.8 billion from the sale of Winterthur, which was recorded in the fourth quarter of 2006. Income from continuing operations was CHF 8.3 billion or CHF 7.53 per share. Basic earnings per share were CHF 10.30. Our return on equity improved significantly to 27.5% in 2006 from 15.4% in 2005. In the fourth quarter of 2006, net income rose to CHF 4.7 billion, compared to CHF 1.1 billion in the fourth quarter of 2005. We generated net new assets of CHF 95.4 billion in 2006, compared to CHF 57.4 billion in 2005.

Returning capital to our shareholders

Credit Suisse Group today has the strongest capital base in its history. We are pleased that we have the requisite resources to grow our business while, at the same time, returning capital to our shareholders. At the forthcoming Annual General Meeting on May 4, 2007, the Board of Directors of Credit Suisse Group will ask the shareholders to approve a further share buyback program of up to CHF 8 billion over three years. It will also propose a distribution of CHF 2.70 per share for the financial year 2006, comprising a cash dividend of CHF 2.24 per share and a par value reduction of CHF 0.46 per share.

Investment Banking delivers strong results

We achieved record results in Investment Banking in 2006, reflecting a strong performance in all key businesses and regions amid favorable market conditions, high levels of client activity and improved market share in a range of products. Against this backdrop, we generated record revenues in advisory and debt and equity underwriting and significantly increased our trading revenues. Income from continuing operations before taxes grew by 272% compared to 2005. Excluding credits from insurance settlements for litigation and related costs in 2006 and a charge to increase litigation reserves in 2005, income from continuing operations before taxes grew by 113%. Our strong results reflect continued progress against our strategy to deliver a more profitable business. Highlights in Investment Banking in 2006 included our continued leadership position in some of the world’s fastest growing emerging markets, such as China, Russia, Brazil and Mexico. This was demonstrated, among other things, by our number one market share ranking in equity issuance and announced mergers and acquisitions in Latin America and our recognition as the “China Equity House” in International Financing Review’s Asia Awards 2006. Credit Suisse was presented with the “European IPO House of the Year” award in the annual Financial News Awards for Excellence in Investment Banking for 2006. In addition The Banker magazine’s annual Investment Banking Awards 2006 recognized Credit Suisse as the “Best Bank of the Year for IPOs.” We also maintained our leadership position in other important growth areas such as commercial mortgage-backed securities, leveraged finance and financial sponsors. We advised on a number of notable transactions that were announced in the fourth quarter of the year, including Google Inc.’s acquisition of YouTube, the sale of Raytheon Aircraft Company to Hawker Beechcraft Corporation and the acquisition of Corus Group plc by Tata Steel.

Continued expansion in Private Banking

In our Private Banking segment, which comprises the Wealth Management and Corporate & Retail Banking businesses, we delivered very strong results with significantly higher net revenues in 2006. This revenue growth outpaced an increase in total operating expenses driven partly by ongoing strategic investments in the Wealth Management business. This resulted in record income from continuing operations before taxes for 2006. Asset gathering also reached a record level, with net new assets of CHF 50.5 billion in Wealth Management, representing a growth rate of 7.3%. We continued to expand our global reach in Wealth Management through 2006 and announced the launch of new onshore operations in Brazil, Russia, Australia, Qatar and Lebanon.

Realignment of Asset Management

In our Asset Management segment, we generated strong net new assets of CHF 50.8 billion in 2006, including alternative investment assets of CHF 12.5 billion. Our net revenues before private equity and other investment-related gains increased 12%, driven by higher asset management revenues and private equity commissions and fees. Income from continuing operations before taxes decreased by half compared to 2005, reflecting higher total operating expenses, partly due to realignment expenses, and lower private equity and other investment-related gains. We achieved further progress in the realignment of Asset Management during the fourth quarter of the year, as part of the previously announced strategy to reposition businesses with low profitability, reshape the product offering, improve investment and sales processes and reduce the overall cost base. In addition, we continued to invest in expanding the geographic footprint of our Asset Management business in key markets in 2006, while also taking steps to broaden our alternative investment business with a series of strategic alliances aimed at adding new capabilities and at increasing our product offering.

Strategic priorities going forward

We have defined three clear strategic priorities in order to accelerate the expansion of our business going forward. We will continue to capitalize on our integrated banking model by building on a series of targeted internal initiatives that drive revenue growth and reduce costs. We will deploy our capital as efficiently as possible. The target for our investments is an annual rate of return of 20% or above in the medium term. We will continue to expand our activities in high-growth markets and products. For example, we signed an agreement to acquire the Brazilian asset manager Hedging-Griffo in the fourth quarter of 2006. This strategic step will help us to leverage our integrated banking model in Brazil to provide a comprehensive range of investment banking, private banking and asset management services to onshore clients in this market. We also aim to realize our third priority through measures such as the expansion of our activities in dynamic emerging markets and the growth of leading businesses and products, including alternative investments and structured products. Our objective is to generate long-term, sustainable returns. We will therefore focus on and invest in businesses which fit our model and are in line with that objective.

Outlook

The growth prospects for the global economy remain good and we expect client activity to continue at around the levels of 2006. Interest rates are unlikely to increase significantly and valuations for equities are still relatively low. High corporate earnings will attract capital flows into the equity markets, which will continue to trend higher with occasional corrections. We have had a good start to 2007 and are well positioned to capture these growth opportunities with our integrated banking model. Yours sincerely Oswald J. Grübel February 2007

Credit Suisse Group

Credit Suisse Group reported net income of CHF 4,673 million in the fourth quarter of 2006, an increase of CHF 3,570 million compared to the fourth quarter of 2005. Fourth quarter net income included a net capital gain of CHF 1,817 million from the sale of Winterthur. Net income for the full year 2006 was CHF 11,327 million, an increase of CHF 5,477 million, or 94%, compared to the full year 2005. Income from continuing operations in 2006 was CHF 8,281 million, an increase of 83%. In the fourth quarter, Investment Banking results improved significantly as a result of favorable market conditions and increased client and deal activity. Private Banking also reported good results as higher revenues associated with client activity were partially offset by higher compensation expenses, including costs of strategic investments in the Wealth Management business. Asset Management results declined reflecting lower private equity and other investment-related gains and higher compensation and other operating expenses, partly due to the business realignment.

Summary of segment results

Investment Banking

Investment Banking reported record income from continuing operations before taxes of CHF 2,342 million in the fourth quarter of 2006, an increase of CHF 2,056 million compared to the fourth quarter of 2005. These results reflected strong performance across all key business areas and regions amid favorable market conditions, high levels of deal activity and improved market share in certain products. For the full year 2006, Investment Banking reported income from continuing operations before taxes of CHF 5,951 million, an increase of CHF 4,352 million compared to the full year 2005. Excluding the CHF 508 million credits from insurance settlements for litigation and related costs in 2006 and the CHF 960 million charge to increase litigation reserves in 2005, income from continuing operations before taxes for the full year 2006 increased 113% compared to the full year 2005.

Private Banking

Private Banking reported record income from continuing operations before taxes of CHF 1,143 million in the fourth quarter of 2006, CHF 117 million, or 11%, above the fourth quarter of 2005. The fourth quarter of 2006 was characterized by strong equity markets, which led to strong client activity and a 9% increase in revenues. Operating expenses increased 9%, reflecting ongoing strategic investments in international growth in the Wealth Management business and new business initiatives in Corporate & Retail Banking. Full year 2006 income from continuing operations before taxes was a record CHF 4,596 million, 16% higher than in 2005. Private Banking reported net new assets of CHF 9.7 billion in the fourth quarter of 2006 and CHF 52.2 billion in full year 2006. Assets under management were CHF 940.3 billion as of December 31, 2006, an increase of 12.3% compared to December 31, 2005.

Asset Management

Asset Management income from continuing operations before taxes was CHF 89 million in the fourth quarter of 2006, a decrease of CHF 152 million, or 63%, from the fourth quarter of 2005. This reflected lower private equity and other investment-related gains compared to the strong fourth quarter of 2005 and higher operating expenses, partly due to realignment costs. Full year 2006 income from continuing operations before taxes was CHF 508 million, a decrease of 50% from the full year 2005. Asset Management reported a net asset outflow of CHF 2.9 billion in the fourth quarter of 2006 and net new assets of CHF 50.8 billion in full year 2006. Assets under management increased to CHF 669.9 billion as of December 31, 2006 from CHF 589.4 billion as of December 31, 2005.

Credit Suisse Group consolidated results

The Group recorded net income of CHF 4,673 million in the fourth quarter of 2006, an increase of CHF 3,570 million compared to the fourth quarter of 2005. Fourth quarter net income included a net capital gain of CHF 1,817 million from the sale of Winterthur. Basic earnings per share increased to CHF 4.35, compared with CHF 0.98 in the fourth quarter of 2005. The return on equity in the fourth quarter of 2006 was 44.1% compared to 11.2% in the fourth quarter of 2005.

Income from continuing operations before extraordinary items and cumulative effect of accounting changes for the fourth quarter of 2006 was CHF 2,599 million or CHF 2.42 per share. This compares to CHF 677 million or CHF 0.59 per share in the fourth quarter of 2005.

Full year net income was CHF 11,327 million, an increase of 5,477 million, or 94%, compared to full year 2005. Full year 2006 basic earnings per share improved to CHF 10.30. Full year 2006 return on equity was 27.5%, compared to 15.4% in 2005. For the full years 2006 and 2005, income from continuing operations before extraordinary items and cumulative effect of accounting changes was CHF 8,281 million and CHF 4,526 million, or CHF 7.53 and CHF 3.98 per share, respectively.

Net revenues

The Group reported net revenues of CHF 10,814 million in the fourth quarter of 2006, an increase of CHF 3,248 million, or 43%, compared to the fourth quarter of 2005. Full year 2006 net revenues were CHF 38,603 million, 27% above full year 2005.

Net interest income was 9% higher in the fourth quarter of 2006 compared to the fourth quarter of 2005, primarily reflecting an increase in Private Banking largely due to an increase in liability margins and volumes.

Commissions and fees increased 25% compared to the fourth quarter of 2005, primarily as a result of higher underwriting and advisory fees in Investment Banking, and to a lesser extent, higher brokerage and issuing fees in Private Banking due to stronger client activity.

The following tables set forth an overview of segment results for the fourth quarter of 2006 and 2005, respectively:
4Q 2006, in CHF m			Investment Banking		Private Banking		Asset Management		Corporate Center	1)	Credit Suisse Group
Net revenues			6,085		2,973		738		1,018		10,814
Provision for credit losses			20		(41)		1		0		(20)
Compensation and benefits			2,566		1,037		327		170		4,100
Other expenses			1,157		834		321		108		2,420
Total operating expenses			3,723		1,871		648		278		6,520
Income from continuing operations before taxes and minority interests			2,342		1,143		89		740		4,314

4Q 2005, in CHF m			Investment Banking		Private Banking		Asset Management		Corporate Center	1)	Credit Suisse Group
Net revenues			3,735		2,716		757		358		7,566
Provision for credit losses			(13)		(21)		0		0		(34)
Compensation and benefits			2,136		888		252		708		3,984
Other expenses			1,326		823		264		144		2,557
Total operating expenses			3,462		1,711		516		852		6,541
Income/(loss) from continuing operations before taxes and minority interests			286		1,026		241		(494)		1,059
1) Includes consolidation eliminations, revenues and expenses from certain parent company investments and certain other revenues and expenses not allocated to the segments. Also includes minority interest revenues of CHF 998 million and CHF 554 million in 4Q 2006 and 4Q 2005, respectively, and minority interest expenses of CHF 71 million and CHF 15 million in 4Q 2006 and 4Q 2005, respectively, from the consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest in such income.

The following table presents the Group's condensed consolidated statements of income:
													12 months
in CHF m			4Q 2006		3Q 2006		4Q 2005		Change in % from 3Q 2006		Change in % from 4Q 2005		2006		2005		Change in % from 2005
Net revenues			10,814		8,076		7,566		34		43		38,603		30,489		27
Provision for credit losses			(20)		(40)		(34)		(50)		(41)		(111)		(144)		(23)
Compensation and benefits			4,100		3,427		3,984		20		3		15,697		13,974		12
Other expenses			2,420		2,229		2,557		9		(5)		8,717		9,258		(6)
Total operating expenses			6,520		5,656		6,541		15		0		24,414		23,232		5
Income from continuing operations before taxes,minority interests, extraordinary items andcumulative effect of accounting changes			4,314		2,460		1,059		75		307		14,300		7,401		93
Income tax expense/(benefit)			805		367		(108)		119		–		2,389		927		158
Minority interests			910		625		490		46		86		3,630		1,948		86
Income from continuing operations beforeextraordinary items and cumulative effectof accounting changes			2,599		1,468		677		77		284		8,281		4,526		83
Income from discontinued operations, net of tax			2,074		424		426		389		387		3,070		1,310		134
Extraordinary items, net of tax			0		0		0		–		–		(24)		0		–
Cumulative effect of accounting changes, net of tax			0		0		0		–		–		0		14		(100)
Net income			4,673		1,892		1,103		147		324		11,327		5,850		94

Trading revenues increased 130% compared to the fourth quarter of 2005, primarily reflecting Investment Banking’s strong trading revenues in the fourth quarter of 2006, in particular in fixed income.

Other revenues in the fourth quarter of 2006 increased 46%, compared to the fourth quarter of 2005, which was the result of higher minority interest-related revenues from consolidated private equity funds and other entities in which the Group does not have a significant economic interest in such revenues.

Provision for credit losses

The Group reported a net release of provisions for credit losses of CHF 20 million in the fourth quarter of 2006 compared to a net release of CHF 34 million in the fourth quarter of 2005. For the full year 2006, the net release of provision for credit losses was CHF 111 million compared to CHF 144 million in 2005. While the credit environment is likely to remain favorable in the near term, we do not expect these very benign conditions to continue.

Total operating expenses

The Group reported total operating expenses of CHF 6,520 million in the fourth quarter of 2006, CHF 21 million below the fourth quarter of 2005. Compensation and benefits increased CHF 116 million, or 3%, to CHF 4,100 million compared to the fourth quarter of 2005, which included a CHF 630 million expense, recorded in the Corporate Center, relating to 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. In the fourth quarter of 2006, compensation and benefits primarily reflected higher performance-based compensation in Investment Banking and Private Banking.

Other expenses in the fourth quarter of 2006 were CHF 2,420 million, a decrease of CHF 137 million, or 5%, compared to the fourth quarter of 2005 primarily reflecting lower professional fees, a credit from an insurance settlement and lower travel and entertainment expenses in Investment Banking offset by realignment costs in Asset Management.

For the full year 2006, the Group reported total operating expenses of CHF 24,414 million, an increase of CHF 1,182 million, or 5%, compared to the previous year. Full year 2006 expenses included credits from insurance settlements for litigation and related costs of CHF 508 million. Full year 2005 expenses included the reserve for private litigation matters of CHF 960 million and a CHF 630 million expense relating to the above-mentioned change in the Group’s accounting for share-based compensation awards. Excluding these items, total operating expenses increased 15%, primarily as a result of higher performance-based compensation expenses in Investment Banking and Private Banking.

Income tax expense

The Group recorded income tax expense of CHF 805 million in the fourth quarter of 2006 reflecting the Group's higher income from continuing operations before taxes. This compared to a net tax benefit of CHF 108 million in the fourth quarter of 2005, reflecting the release of tax contingency accruals and the impact of the above-mentioned change in the Group’s accounting for share-based compensation awards.

The Group tax expense is not affected by minority interest revenues and expenses from consolidated private equity and other entities in which the Group does not have a significant economic interest in such revenues and expenses. The amount of non-taxable income relating to these investments varies from one period to the next and was CHF 927 million in the fourth quarter of 2006 compared to CHF 539 million in the fourth quarter of 2005. The Group’s effective tax rate in the fourth quarter of 2006 was 19%. Excluding the effect of non-taxable income from these investments, the Group’s effective tax rate in the fourth quarter of 2006 was 24%. The Group’s effective tax rate in the fourth quarter of 2005 was negative as a result of the release of tax contingency accruals and the impact of the above-mentioned change in the Group’s accounting for share-based awards.

Minority interests

Minority interests were CHF 910 million in the fourth quarter of 2006, an increase of CHF 420 million compared to the fourth quarter of 2005. This increase was primarily due to revenues from certain private equity funds and other entities that were consolidated for the first time in 2006. For further details, see “Notes to the condensed consolidated financial statements - unaudited - Recently adopted accounting standards.”

The Group’s net revenues and operating expenses reflect the consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest in such revenues and expenses. The consolidation of these entities does not affect net income as the amounts recorded in net revenues and expenses are offset by corresponding amounts reported as minority interests. This minority interest income, which is reported in the Corporate Center, was CHF 927 million in the fourth quarter of 2006, and is comprised of revenues of CHF 998 million, primarily other revenues, and compensation and other expenses of CHF 71 million.

Discontinued operations

On December 22, 2006, the Group completed the sale of Winterthur for cash consideration of CHF 12.3 billion. The Group realized a net capital gain of CHF 1,817 million on the transaction. As a result of the sale of Winterthur, the results of operations of Winterthur are reflected in Income from discontinued operations, net of tax in the consolidated statements of income for all periods presented. Income from discontinued operations in the fourth quarter of 2006 was CHF 2,074 million, including the gain from the sale. For full year 2006, income from discontinued operations was CHF 3,070 million compared to CHF 1,310 million for full year 2005.

For further details, see “Notes to the condensed consolidated financial statements - unaudited - Discontinued operations.”

Credit Suisse Group structure

The Group’s business consists of three segments: Investment Banking, Private Banking and Asset Management. The three segments are complemented by Shared Services, which provides support in the areas of finance, legal and compliance, risk management and information technology. Prior period results presented in this Quarterly Report have been revised to reflect the operational and management structure in place during 2006.

The Group’s segments are managed and reported on a pre-tax basis. Minority interest-related revenues and expenses resulting from the consolidation of certain private equity funds and other entities in which the Group does not have a significant economic interest in such revenues and expenses are reported in the Corporate Center. Net income is unaffected by the consolidation of these entities due to offsetting minority interests.

Recent developments

Credit Suisse remains focused on its strategy to provide more value to its clients through its integrated banking model and active growth of its global footprint. During the fourth quarter of 2006, Credit Suisse announced additional onshore operations in the high-growth market of Brazil through the acquisition of Hedging-Griffo. Hedging-Griffo is a leading asset management company with a large and well-established client base and also serves high-net-worth individuals through its private banking platform in Brazil. It manages CHF 9.2 billion in assets under management for high-net worth individuals in Brazil and over the past three years has increased these assets at an average annual growth rate of 38.5%. This acquisition will support Credit Suisse’s integrated banking model by adding significant scale to its onshore asset management business, strengthen its private banking businesses and complement Credit Suisse’s position as a premier investment bank in Brazil. This transaction is expected to close by the middle of 2007, subject to regulatory approval.

Dividend proposal and share repurchase program

Credit Suisse Group’s Board of Directors will propose a distribution of CHF 2.70 per share to the shareholders at the Annual General Meeting on May 4, 2007. The proposed distribution consists of a cash dividend of CHF 2.24, to be paid out on May 10, 2007, and a par value reduction of CHF 0.46, to be paid out on July 18, 2007. Both distributions are subject to approval at the Annual General Meeting.

The Board of Directors will also propose a new share repurchase program of up to CHF 8 billion at the Annual General Meeting. If approved by the shareholders, the program will commence after the Annual General Meeting and last for a maximum of three years. The shares would be repurchased through a second trading line on virt-x and cancelled.

Factors affecting results of operations

The fourth quarter of 2006 was characterized by strong global equity markets, supported by solid company earnings and economic growth, modest inflation fears and a favorable interest rate environment across all regions. US stock markets were consistently buoyant throughout the period, as all major indices reported an increase, with the Dow Jones Industrial Average up 7%, the S&P 500 up 6% and the Nasdaq Composite Index up 7%.

European stock markets also improved during the quarter, as the Swiss Market Index increased 4%, the FTSE 100 4% and the German DAX 10%. Key markets in Asia also showed improvement, with the Nikkei increasing 7% during the quarter. Positive market developments resulted in strong trading conditions across all markets.

US interest rates were steady as the US Federal Reserve held the target federal funds rate at 5.25% during the fourth quarter of 2006. The European Central Bank raised its target rate in the quarter, reaching a five-year high of 3.5%, and indicated that further increases could be expected, although at a slower pace. The Bank of Japan kept its key interest rate stable at 0.25%, reflecting the recent weak economic data. The Swiss National Bank raised its target three-month Libor by 0.25% in December, citing expected continued economic growth throughout 2007.

Global debt underwriting activity recovered from two consecutive quarters of decreasing volumes to set an annual issuance record. The fourth quarter of 2006 ranked as the second highest quarter ever. A high level of financing activity and mergers and acquisitions activity across many sectors helped drive debt issuance volume, with both investment grade and high-yield debt volumes up from the fourth quarter of 2005.

Global equity underwriting volumes reached record levels in the quarter and for the year, driven by the continued recovery in the initial public offering market and the revival of convertible issuances. Global initial public offering volume rose for the third successive year, surpassing the previous record in 2000. On a regional basis, Europe accounted for the largest number and dollar volume of IPOs, and China was highest on an individual country basis.

The volume of announced mergers and acquisitions transactions in the fourth quarter represented the busiest quarter of the year and was higher than the fourth quarter of 2005. The total volume of announced mergers and acquisitions transactions in 2006 exceeded the previous record set in 2000. Financial sponsors continued to drive mergers and acquisitions activity, and European volume growth outpaced the US compared to the prior year.

Investment Banking

Investment Banking provides financial advisory, lending and capital raising services and sales and trading to institutional, corporate and government clients worldwide.

Investment Banking reported record income from continuing operations before taxes of CHF 2,342 million in the fourth quarter of 2006, an increase of CHF 2,056 million, compared to the fourth quarter of 2005. These results reflected strong performance across all key business areas and regions amid favorable market conditions, high levels of deal activity and improved market share in certain products. The weakening of the average rate of the US dollar against the Swiss franc from the fourth quarter of 2005 adversely affected revenues and favorably impacted expenses.

For the full year 2006, Investment Banking reported income from continuing operations before taxes of CHF 5,951 million, an increase of CHF 4,352 million compared to the full year 2005. Excluding the CHF 508 million of credits from insurance settlements for litigation and related costs in 2006 and the CHF 960 million charge to increase litigation reserves in 2005, income from continuing operations before taxes for the full year 2006 increased 113% compared to the full year 2005.

Investment Banking’s progress in implementing its strategy to deliver a more profitable franchise positioned it to capitalize on favorable market conditions prevalent during 2006. Consequently, Investment Banking was able to achieve a number of its financial objectives set out in December 2004 and continues to make incremental progress in other areas of its strategy. For the full year 2006, Investment Banking delivered strong revenue growth and began to make progress on cost management initiatives.

Investment Banking will continue to build upon its existing strong franchises, including the emerging markets, leveraged finance and mortgage businesses. In 2006, Credit Suisse maintained its leading position in some of the fastest growing emerging markets, including China, Russia, Brazil and Mexico. The acquisition of Hedging-Griffo is expected to complement Credit Suisse’s position as a premier investment bank in Brazil. In addition, Investment Banking will continue to grow businesses where there are gaps to peers, such as prime services, commodities and derivatives, with an aim to further diversify its revenue mix and reduce earnings volatility. With this foundation in place, Investment Banking is well positioned to leverage revenue synergies obtained through the integrated bank, with a strong focus on delivering solutions and support to Private Banking and Asset Management clients.

In the fourth quarter of 2006, pre-tax income margin was 38.5%, and pre-tax return on average economic risk capital was 58.2%, compared to 7.7% and 10.8%, respectively, in the fourth quarter of 2005. For the full year 2006, pre-tax income margin was 29.1%, and pre-tax return on average economic risk capital was 40.3%. Excluding the insurance settlements, pre-tax income margin for the full year 2006 was 26.6%, and pre-tax return on average economic risk capital was 37.1%.

Net revenues were a record CHF 6,085 million, up CHF 2,350 million, or 63%, in the fourth quarter of 2006 compared to the fourth quarter of 2005, reflecting strong performance in both the investment banking and trading businesses. This revenue growth was well diversified, spread across most product classes and regions. In US dollar terms, net revenues were up 75%, compared to the fourth quarter of 2005. For the full year 2006, net revenues were CHF 20,469 million, up CHF 4,922 million, or 32%, compared to the full year 2005.

Provisions for credit losses were CHF 20 million in the fourth quarter of 2006, compared to a net release of CHF 13 million in the fourth quarter of 2005. Compared to September 30, 2006, total impaired loans decreased CHF 65 million to CHF 188 million, and valuation allowances as a percentage of total impaired loans increased 35 percentage points to 136% as of December 31, 2006. The overall credit environment continued to be favorable in the fourth quarter of 2006. While the credit environment is likely to remain favorable in the near term, the very benign credit environment is not expected to continue, which may result in a modest increase in net new provision levels towards the end of 2007.

Total operating expenses were CHF 3,723 million in the fourth quarter of 2006, up CHF 261 million, or 8%, compared to the fourth quarter of 2005. In US dollar terms, total operating expenses were up 15% compared to the fourth quarter of 2005. Compensation and benefits increased CHF 430 million, or 20%, due primarily to higher compensation expenses in line with higher revenues, with discretionary bonus representing a considerable portion of the total amount. Compensation and benefits for a given year are determined by the strength and breadth of business results, staffing levels and the impact of share-based compensation programs. The compensation/ revenue ratio of 42.2% in the fourth quarter of 2006 was significantly lower than the 53.5% in the first three quarters of 2006 due to the strong revenue performance in the quarter. Other expenses decreased CHF 169 million, or 13%, from the fourth quarter of 2005, indicating progress made in improving Investment Banking’s operating efficiency. Other expenses in the fourth quarter of 2006 reflected lower professional fees, a credit from an insurance settlement for litigation and related costs of CHF 34 million and lower travel and entertainment expenses, partially offset by higher commissions in line with higher transaction volumes. Other expenses in the fourth quarter of 2005 included 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.

For the full year 2006, total operating expenses were CHF 14,556 million, up CHF 535 million, or 4%, compared to the full year 2005. Excluding the 2006 insurance settlements and the 2005 litigation charge, total operating expenses increased CHF 2,003 million, or 15%. Compensation and benefits increased CHF 1,640 million, or 19%, due to higher compensation expenses in line with higher revenues, with discretionary bonus representing a considerable portion of the total amount. The compensation/revenue ratio of 50.1% in 2006 was below the targeted level of 53.5% and a decline from 55.5% for the full year 2005. Other expenses decreased CHF 1,105 million, or 20%, compared to the full year 2005. Excluding the insurance settlements and the litigation charge, other expenses were up CHF 363 million, or 8%, from the full year 2005, due primarily to higher commissions in line with higher business activity, higher professional fees due to increased deal activity and the Centers of Excellence start-up initiatives and higher premises and equipment expenses.

The following table presents the results of the Investment Banking segment:
													12 months
in CHF m			4Q 2006		3Q 2006		4Q 2005		Change in % from 3Q 2006		Change in % from 4Q 2005		2006		2005		Change in % from 2005
Net interest income			347		688		421		(50)		(18)		2,640		3,372		(22)
Commissions and fees			2,836		1,853		1,984		53		43		8,941		6,709		33
Trading revenues			2,713		1,580		1,203		72		126		8,368		4,931		70
Other revenues			189		70		127		170		49		520		535		(3)
Total noninterest revenues			5,738		3,503		3,314		64		73		17,829		12,175		46
Net revenues			6,085		4,191		3,735		45		63		20,469		15,547		32
Provision for credit losses			20		(19)		(13)		–		–		(38)		(73)		(48)
Compensation and benefits			2,566		2,241		2,136		15		20		10,261		8,621		19
Other expenses			1,157		1,211		1,326		(4)		(13)		4,295	1)	5,400	2)	(20)
Total operating expenses			3,723		3,452		3,462		8		8		14,556		14,021		4
Income from continuingoperations before taxes			2,342		758		286		209		–		5,951		1,599		272
1) Includes credits from insurance settlements for litigation and related costs of CHF 508 million, of which CHF 34 million relates to 4Q 2006. 2) Includes a CHF 960 million charge to increase the reserve for certain private litigation matters.

The following table presents the revenue details of the Investment Banking segment:
													12 months
in CHF m			4Q 2006		3Q 2006		4Q 2005		Change in % from 3Q 2006		Change in % from 4Q 2005		2006		2005		Change in % from 2005
Debt underwriting			686		451		394		52		74		2,206		1,484		49
Equity underwriting			484		224		343		116		41		1,270		931		36
Underwriting			1,170		675		737		73		59		3,476		2,415		44
Advisory and other fees			785		377		448		108		75		1,900		1,475		29
Total investment banking			1,955		1,052		1,185		86		65		5,376		3,890		38
Fixed income			2,755		2,137		1,566		29		76		9,598		7,004		37
Equity			1,596		1,062		1,021		50		56		5,881		4,340		36
Total trading			4,351		3,199		2,587		36		68		15,479		11,344		36
Other (including loan portfolio)			(221)		(60)		(37)		268		497		(386)		313		–
Net revenues			6,085		4,191		3,735		45		63		20,469		15,547		32

Total investment banking revenues include debt underwriting, equity underwriting and advisory and other fees. In the fourth quarter of 2006, investment banking revenues were a record CHF 1,955 million, up CHF 770 million, or 65%, compared to the fourth quarter of 2005, reflecting record revenues in all key businesses, which were positively impacted by favorable market conditions, high levels of deal activity and volumes and improved market share in certain products in the quarter. For the full year 2006, total investment banking revenues were also a record CHF 5,376 million, up CHF 1,486 million, or 38%, from the full year 2005. These results reflected Credit Suisse’s participation in several high profile transactions, certain improvements in market share and an increase in the breadth and diversity of the business. Credit Suisse's emerging markets business demonstrated increased strength during the year with a number one market share ranking in equity issuance and announced mergers and acquisitions in Latin America for the full year 2006 and its recognition as the "China Equity House" from International Financing Review’s Asia Awards 2006.

Debt underwriting revenues were CHF 686 million in the fourth quarter of 2006, up CHF 292 million, or 74%, compared to the fourth quarter of 2005. These results primarily reflected significantly higher revenues in leveraged finance, which benefited from higher industry-wide issuance volumes, improved market share and continued strength in the financial sponsor client base. During the quarter, Credit Suisse executed the combined high-yield bond offering and syndicated loan facility in connection with the leveraged buyout of Freescale Semiconductor by a private equity consortium, representing the largest amount of high-yield net new money raised in a single day. The investment grade capital markets business had good revenue growth compared to the fourth quarter of 2005, in line with the focus on profitability in this business. For the full year 2006, debt underwriting revenues were CHF 2,206 million, up CHF 722 million, or 49%, compared to the full year 2005, due primarily to more favorable market conditions and increased market share. For the full year 2006, Credit Suisse ranked third in global high-yield securities new issuance volumes.

Equity underwriting revenues in the fourth quarter of 2006 were CHF 484 million, up CHF 141 million, or 41%, compared to the fourth quarter of 2005, primarily reflecting higher industry-wide equity issuance activity and improved global equity market share. For the full year 2006, equity underwriting revenues were CHF 1,270 million, up CHF 339 million, or 36%, from the full year 2005, primarily reflecting record industry-wide equity issuance volumes resulting from improvement in both the initial public offering and convertibles markets. Credit Suisse ranked fourth in global initial public offering market share for the full year 2006, down from first in the full year 2005, despite its higher global initial public offering new issuance volumes in 2006 in line with industry trends. Credit Suisse also maintained a leading position in financial sponsor-backed equity offerings. During the quarter, Credit Suisse was a joint bookrunner in the largest initial public offering to date for the Industrial and Commercial Bank of China Limited, China’s leading commercial bank, and also participated in a number of other key equity transactions across a broad range of industries and geographies. The Banker magazine's annual Investment Banking Awards 2006 recognized Credit Suisse as the "Best Bank of the Year for IPOs." In Europe, Credit Suisse was presented with the "European IPO House of the Year” award in the annual Financial News Awards for Excellence in Investment Banking for 2006.

Advisory and other fees were CHF 785 million in the fourth quarter of 2006, up CHF 337 million, or 75%, compared to the fourth quarter of 2005, due primarily to increased activity and a number of high-fee transactions in the fourth quarter of 2006. Credit Suisse ranked fourth in global announced mergers and acquisitions and seventh in global completed mergers and acquisitions in the fourth quarter of 2006, up from thirteenth and eighth, respectively, in the fourth quarter of 2005. Notable transactions announced in the fourth quarter of 2006 reflected the breadth of Credit Suisse’s advisory business and included Google, Inc.’s acquisition of YouTube, the sale of Raytheon Aircraft Company to Hawker Beechcraft Corporation and the acquisition of Corus Group plc by Tata Steel. For the full year 2006, advisory and other fees increased CHF 425 million, or 29%, to CHF 1,900 million compared to the full year 2005, primarily due to a significant increase in industry-wide activity and increased market share. For the full year 2006, Credit Suisse ranked sixth in global announced mergers and acquisitions, up from tenth for the full year 2005 and reflecting the largest market share increase among the top ten ranked banks. For the full year 2006, Credit Suisse ranked eighth in global completed mergers and acquisitions, with improved market share from the full year 2005. The advisory and other fees results also reflected significantly higher revenues from the private fund group, which raises capital for hedge funds, private equity funds and real estate funds.

Total trading revenues include results from fixed income and equity sales and trading. Total trading revenues for the fourth quarter of 2006 were CHF 4,351 million, up CHF 1,764 million, or 68%, compared to the fourth quarter of 2005, due to strong performance in both fixed income and equity trading. For the full year 2006, total trading revenues were CHF 15,479 million, up CHF 4,135 million, or 36%, compared to the full year 2005.

Investment Banking’s average daily VaR in the fourth quarter of 2006 was CHF 71 million, flat from the fourth quarter of 2005 and down from CHF 80 million in the third quarter of 2006. Compared to the third quarter of 2006, average daily VaR decreased mainly due to reduced equity and interest rate exposures, although commodity risk increased. Average economic risk capital increased CHF 2.4 billion to CHF 16.9 billion, compared to the fourth 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 2,755 million in the fourth quarter of 2006, up CHF 1,189 million, or 76%, compared to the fourth quarter of 2005. These results reflected the second highest level of fixed income trading revenues for a quarter and primarily reflected higher revenues in the commercial mortgage-backed securities, emerging markets trading, global foreign exchange and leveraged finance businesses. Credit spreads remained narrow in the quarter resulting in continued liquidity in the marketplace and solid activity levels. The commercial mortgage-backed securities business was positively impacted by a number of large deals in the quarter. Investment Banking continued to expand its residential mortgage-backed securities business, and revenues in the fourth quarter of 2006 were flat compared to the fourth quarter of 2005, despite softer US market conditions. The high-yield market had significant new issue supply in the quarter which benefited the trading results in the leveraged finance business. In addition, the commodities business continued its revenue growth in the fourth quarter. For the full year 2006, fixed income trading recorded revenues of CHF 9,598 million, an increase of CHF 2,594 million, or 37%, from the full year 2005, due primarily to strong performance in the commercial mortgage-backed securities, global foreign exchange and leveraged finance businesses.

Equity trading revenues of CHF 1,596 million increased CHF 575 million, or 56%, compared to the fourth quarter of 2005, due primarily to higher revenues in the derivatives and cash businesses and equity proprietary trading. These results reflected the second highest level of equity trading revenues for a quarter. The derivatives business improved significantly from the weak performance in the fourth quarter of 2005 and the uneven performance in the third quarter of 2006. Market conditions in the derivatives business improved in the US and Asia in the fourth quarter of 2006, and the business had high levels of client-driven activity. The cash businesses benefited from an increase in deal activity in most regions, stronger secondary markets and continued strong performance from the advanced execution services business. Equity proprietary trading had a strong performance across most strategies and regions amid positive market conditions. For the full year 2006, equity trading had revenues of CHF 5,881 million, up CHF 1,541 million, or 36%, compared to the full year 2005, due primarily to higher revenues in the cash, convertibles and derivatives businesses. Credit Suisse was ranked number one among high-touch clients in Institutional Investor’s 2006 All-America Research Team analyst rankings.

Primarily as a result of losses on credit default swaps used to hedge the loan portfolio, other (including loan portfolio) had a loss of CHF 221 million in the fourth quarter of 2006 compared to a loss of CHF 37 million in the fourth quarter of 2005, which reflected gains on credit default swaps. For the full year 2006, other (including loan portfolio) had losses of CHF 386 million compared to revenues of CHF 313 million for the full year 2005. These results reflected lower gains from private equity-related investments not managed as part of Asset Management and losses on credit default swaps used to hedge the loan portfolio compared to gains on such credit default swaps in 2005.

The following tables present key information of the Investment Banking segment:
									12 months
			4Q 2006		3Q 2006		4Q 2005		2006		2005
Cost/income ratio			61.2%		82.4%		92.7%		71.1%		90.2%
Pre-tax income margin			38.5%		18.1%		7.7%		29.1%		10.3%
Compensation/revenue ratio			42.2%		53.5%		57.2%		50.1%		55.5%
Average economic risk capital, in CHF m			16,853		15,811		14,429		15,853		12,581
Pre-tax return on average economic risk capital1)			58.2%		21.9%		10.8%		40.3%		15.4%
Average one-day, 99% VaR, in CHF m			71		80		71		79		66
1) Calculated using a return excluding interest costs for allocated goodwill.

			31.12.06		30.09.06		31.12.05		Change in % from 30.09.06		Change in % from 31.12.05
Total loans, in CHF m			44,285		42,309		34,762		5		27
Non-performing loans/total loans			0.3%		0.5%		0.4%		–		–
Impaired loans/total loans			0.4%		0.6%		1.5%		–		–

Private Banking

Private Banking provides comprehensive advice and a broad range of investment products and services tailored to the complex needs of high-net-worth individuals all over the world through its Wealth Management business. In Switzerland, Private Banking provides banking products and services to business and retail clients through its Corporate & Retail Banking business.

Private Banking reported income from continuing operations before taxes of CHF 1,143 million in the fourth quarter of 2006, CHF 117 million, or 11%, above the fourth quarter of 2005. The good result was primarily driven by strong revenues, which were the second best quarterly revenues despite the seasonal slowdown in December. The fourth quarter of 2006 was characterized by good equity markets, which led to strong client activity. Net revenues for the fourth quarter of 2006 were CHF 2,973 million, up CHF 257 million, or 9%, compared to the fourth quarter of 2005. This growth was mainly from higher commissions and fees and net interest income. Total operating expenses of CHF 1,871 million in the fourth quarter of 2006 increased CHF 160 million, or 9%, compared to the fourth quarter of 2005. This increase was mainly driven by ongoing strategic investments in international growth in the Wealth Management business and new business initiatives in Corporate & Retail Banking. In addition, there were higher performance-related compensation expenses. Full year 2006 income from continuing operations before taxes was a record CHF 4,596 million, CHF 630 million, or 16%, higher than in 2005, reflecting an increase in net revenues of CHF 1,183 million, or 11%, and an increase in total operating expenses of CHF 555 million, or 8%, compared to full year 2005. Assets under management were CHF 940.3 billion as of December 31, 2006 compared to CHF 837.6 billion as of December 31, 2005, an increase of 12.3%, reflecting strong asset generation and higher equity valuations, offset in part by the adverse impact of foreign exchange-related movements, mainly the weaker US dollar. Net new assets were CHF 9.7 billion in the fourth quarter of 2006, leading to full year 2006 net new assets of CHF 52.2 billion, CHF 1.8 billion, or 3.6%, above the record level attained for 2005.

Credit Suisse remains focused on its strategy to provide more value to its clients through its integrated bank model, actively growing its global footprint and maintaining a market leading position in the Wealth Management business. During the fourth quarter of 2006, Credit Suisse announced additional onshore operations in the high-growth market of Brazil through the acquisition of Hedging-Griffo. Hedging-Griffo is a leading asset management company with a large and well-established client base and also serves high-net-worth individuals through its private banking platform in Brazil. In addition to increasing the scope and geographic reach of its franchise, Credit Suisse is also dedicated to providing more value to its clients through the continuing improvement of its existing services and new, innovative products. In response to client demand, Private Banking introduced more than 350 products in the fourth quarter of 2006, particularly tailor-made solutions in structured investments. Corporate & Retail Banking relaunched its consumer financing business in the fourth quarter of 2006 through BANK-now, a specialized bank which serves as a supplier of consumer credit and car leasing in Switzerland. Credit Suisse established BANK-now to provide a more targeted response to the Swiss consumer financing needs, a market which has grown between 3% and 5% per annum over the last few years.

In the fourth quarter of 2006, Private Banking had strong net revenues of CHF 2,973 million, which were CHF 257 million, or 9%, higher than in the fourth quarter of 2005. The increase in revenues was mainly driven by higher commissions and fees of CHF 1,702 million, which were up CHF 167 million, or 11%, primarily from higher brokerage and issuing fees due to stronger client activity. In addition, asset-based commissions and fees increased due to the higher level of assets under management. Net interest income increased CHF 146 million, or 16%, largely due to an increase in liability margins and volumes partially offset by asset margin pressure. Full year 2006 net revenues were CHF 11,678 million, an increase of CHF 1,183 million, or 11%, compared to 2005, primarily reflecting higher commissions and fees and net interest income.

Provisions for credit losses benefited from the continued favorable credit environment, resulting in net releases of CHF 41 million in the fourth quarter of 2006, compared to net releases of CHF 21 million in the fourth quarter of 2005. For the full year 2006, net releases of provisions for credit losses amounted to CHF 73 million, compared to net releases of CHF 71 million for 2005.

Private Banking had total operating expenses of CHF 1,871 million for the fourth quarter of 2006, an increase of CHF 160 million, or 9%, compared to the fourth quarter of 2005. Compensation and benefits increased CHF 149 million, or 17%, driven by higher personnel expenses related to strategic investments in Wealth Management’s global franchise and higher performance-related compensation expenses. The increase in performance-related compensation expenses was due to the improved results and the decision taken in the third quarter of 2006 to extend vesting for performance-related stock awards earned in 2006 and granted in 2007. The equivalent decision was taken in the fourth quarter of 2005, leading to lower compensation expenses as a result of a higher portion of deferred compensation. Other expenses increased CHF 11 million, or 1%, compared to the fourth quarter of 2005. Total operating expenses for the full year 2006 increased CHF 555 million, or 8%, to CHF 7,155 million, mainly reflecting strategic investments in Wealth Management’s global franchise and higher performance-related compensation expenses in line with the better results.

Private Banking reported a pre-tax income margin of 38.4% for the fourth quarter of 2006, an increase of 0.6 percentage points compared to the fourth quarter of 2005, as increased revenues and higher releases of credit provisions outpaced the growth in operating expenses. The full year 2006 pre-tax income margin increased 1.6 percentage points to 39.4% compared to 2005, primarily reflecting the strong increase in net revenues. As of December 31, 2006, assets under management for Private Banking totaled CHF 940.3 billion, an increase of CHF 102.7 billion, or 12.3%, compared to December 31, 2005. This increase was due to strong asset generation and higher equity valuations, offset in part by the adverse impact of foreign exchange-related movements, mainly the weaker US dollar.

The following table presents the results of the Private Banking segment:
													12 months
in CHF m			4Q 2006		3Q 2006		4Q 2005		Change in % from 3Q 2006		Change in % from 4Q 2005		2006		2005		Change in % from 2005
Net interest income			1,070		1,009		924		6		16		4,095		3,716		10
Commissions and fees			1,702		1,508		1,535		13		11		6,623		5,812		14
Trading revenues			151		124		236		22		(36)		751		793		(5)
Other revenues			50		41		21		22		138		209		174		20
Total noninterest revenues			1,903		1,673		1,792		14		6		7,583		6,779		12
Net revenues			2,973		2,682		2,716		11		9		11,678		10,495		11
Provision for credit losses			(41)		(19)		(21)		116		95		(73)		(71)		3
Compensation and benefits			1,037		910		888		14		17		4,038		3,588		13
Other expenses			834		769		823		8		1		3,117		3,012		3
Total operating expenses			1,871		1,679		1,711		11		9		7,155		6,600		8
Income from continuing operations before taxes			1,143		1,022		1,026		12		11		4,596		3,966		16

The following tables present key information of the Private Banking segment:
									12 months
			4Q 2006		3Q 2006		4Q 2005		2006		2005
Cost/income ratio			62.9%		62.6%		63.0%		61.3%		62.9%
Pre-tax income margin			38.4%		38.1%		37.8%		39.4%		37.8%
Net new assets, in CHF bn			9.7		11.1		8.9		52.2		50.4
Average economic risk capital, in CHF m			4,304		4,466		4,743		4,525		4,714
Pre-tax return on average economic risk capital1)			108.2%		93.4%		88.2%		103.4%		85.5%
1) Calculated using a return excluding interest costs for allocated goodwill.

			31.12.06		30.09.06		31.12.05		Change in % from 30.09.06		Change in % from 31.12.05
Assets under management, in CHF bn			940.3		904.2		837.6		4.0		12.3

Wealth Management

Wealth Management reported income from continuing operations before taxes of CHF 811 million for the fourth quarter of 2006, up CHF 108 million, or 15%, from the fourth quarter of 2005. Net revenues amounted to CHF 2,077 million in the fourth quarter of 2006, an increase of CHF 209 million, or 11%, compared to the fourth quarter of 2005, mainly from higher commissions and fees from brokerage and product issuances, reflecting the stronger client activity, and higher net interest income from higher liability margins and liability volumes. Net releases of provisions for credit losses in the fourth quarter of 2006 amounted to CHF 17 million, mainly in relation to the resolution of a single exposure.

Total operating expenses in the fourth quarter of 2006 of CHF 1,283 million were CHF 120 million, or 10%, higher compared to the fourth quarter of 2005, primarily driven by an increase in compensation and benefits. This increase primarily reflected higher personnel expenses related to strategic investments in the global franchise, and higher performance-related compensation expenses. In the full year 2006, Wealth Management added 115 relationship managers, of which over 40 were added in the fourth quarter, bringing the total number of relationship managers to more than 2,800. The increase in performance-related compensation expenses was due to the improved results and the above mentioned decision to extend vesting for performance-related stock awards taken in the third quarter of 2006. Other expenses were flat compared to the fourth quarter of 2005. Compared to the third quarter of 2006, other expenses increased CHF 37 million, or 7%, reflecting higher commission expenses, project costs associated with the merger of Clariden Leu and higher marketing and sales costs, partly offset by the release of a provision.

The pre-tax income margin for the fourth quarter of 2006 was 39.0%, 1.4 percentage points higher compared to the fourth quarter of 2005, driven by the increase in net revenues and net releases of credit provisions, offset in part by higher operating expenses.

Full year 2006 income from continuing operations before taxes was CHF 3,237 million, an increase of CHF 576 million, or 22%, compared to 2005. Net revenues were CHF 8,181 million for the full year of 2006, an increase of CHF 1,056 million, or 15%, compared to 2005, primarily due to higher commissions and fees from brokerage and product issuances, reflecting the stronger client activity, increased asset-based commissions due to increased assets under management and higher net interest income, largely due to an increase in liability margins and volumes. Total operating expenses for the full year 2006 increased CHF 524 million, or 12%, to CHF 4,963 million, primarily reflecting strategic investments in the global franchise and higher performance-related compensation expenses in line with the better results. As a result, the full year 2006 pre-tax income margin improved 2.3 percentage points to 39.6%, reflecting the strong increase in net revenues, which was greater than the increase in expenses primarily from the ongoing strategic investments.

During the fourth quarter of 2006, Wealth Management's net new assets amounted to CHF 8.6 billion, mainly driven by inflows in the European onshore business and Asia. This reflected a seasonal slowdown but was an increase of CHF 1.8 billion, or 26.5%, compared to the fourth quarter of 2005. Net new assets for the full year 2006 were a record CHF 50.5 billion, an increase of CHF 7.7 billion, or 18.0%, compared to 2005, and a growth rate of 7.3%, exceeding the 6% mid-term target and showing continued momentum in asset gathering. As of December 31, 2006, assets under management amounted to CHF 784.2 billion, an increase of CHF 90.9 billion, or 13.1%, as a result of strong net new asset growth and higher valuations. The gross margin on assets under management was 108.6 basis points for the fourth quarter of 2006, up 7.9 basis points from the third quarter of 2006, which was impacted by lower transaction-based revenues. The gross margin on assets under management for the full year 2006 was 111.6 basis points, reflecting a slight decrease of 1.0 basis points compared to 2005. This decrease was primarily driven by the decline in the asset-based margin from the slower growth of underlying net interest income compared to the growth in average assets under management and the dilution effect from the continuing strong growth in net new assets.

The following table presents the results of the Wealth Management business:
													12 months
in CHF m			4Q 2006		3Q 2006		4Q 2005		Change in % from 3Q 2006		Change in % from 4Q 2005		2006		2005		Change in % from 2005
Net interest income			488		453		396		8		23		1,916		1,625		18
Total noninterest revenues			1,589		1,390		1,472		14		8		6,265		5,500		14
Net revenues			2,077		1,843		1,868		13		11		8,181		7,125		15
Provision for credit losses			(17)		(2)		2		–		–		(19)		25		–
Compensation and benefits			714		629		596		14		20		2,780		2,367		17
Other expenses			569		532		567		7		0		2,183		2,072		5
Total operating expenses			1,283		1,161		1,163		11		10		4,963		4,439		12
Income from continuing operations before taxes			811		684		703		19		15		3,237		2,661		22

The following tables present key information of the Wealth Management business:
									12 months
			4Q 2006		3Q 2006		4Q 2005		2006		2005
Cost/income ratio			61.8%		63.0%		62.3%		60.7%		62.3%
Pre-tax income margin			39.0%		37.1%		37.6%		39.6%		37.3%
Net new assets, in CHF bn			8.6		10.9		6.8		50.5		42.8
Net new asset growth (rolling four quarter average)			7.3%		7.2%		7.5%		7.3%		7.5%
Net new asset growth			4.6%		6.1%		4.0%		7.3%		7.5%
Gross margin on assets under management			108.6 bp		100.7 bp		109.4 bp		111.6 bp		112.6 bp
	of which asset-based		70.0 bp		69.3 bp		70.3 bp		70.8 bp		72.6 bp
	of which transaction-based		38.6 bp		31.4 bp		39.1 bp		40.8 bp		40.1 bp
Net margin (pre-tax) on assets under management			42.4 bp		37.4 bp		41.2 bp		44.1 bp		42.0 bp

			31.12.06		30.09.06		31.12.05		Change in % from 30.09.06		Change in % from 31.12.05
Assets under management, in CHF bn			784.2		753.2		693.3		4.1		13.1

Corporate & Retail Banking

Corporate & Retail Banking reported income from continuing operations before taxes of CHF 332 million for the fourth quarter of 2006, up CHF 10 million, or 3%, from the fourth quarter of 2005. Net revenues were CHF 896 million for the fourth quarter of 2006, an increase of CHF 49 million, or 6%, compared to the fourth quarter of 2005. This revenue growth was due to an increase in asset-based commissions and fees and increased net interest income. The increase in net interest income was largely due to an increase in liability margins and asset and liability volumes, partially offset by asset margin pressure. Net releases of provisions for credit losses amounted to CHF 24 million in the fourth quarter of 2006 compared to net releases of CHF 23 million in the fourth quarter of 2005, reflecting the continued favorable credit environment. Corporate & Retail Banking expects reductions in future releases of credit provisions due to a decline in the amount of impaired loans.

Total operating expenses in the fourth quarter of 2006 were CHF 588 million, CHF 40 million, or 7%, above the fourth quarter of 2005. This increase was primarily driven by higher compensation and benefits mainly due to higher performance-related compensation expenses in line with the better result. Additionally, the increase in performance-related compensation expenses was due to the above-mentioned decision to extend vesting for performance-related stock awards taken in the third quarter of 2006. Compared to the fourth quarter of 2005, other expenses increased CHF 8 million, or 3%, reflecting costs related to BANK-now and the launch of a new credit card in cooperation with the second largest retailer in Switzerland. Compared to the third quarter of 2006, other expenses increased CHF 28 million, or 12%, also reflecting higher marketing and sales costs. The pre-tax income margin was 37.1% for the fourth quarter of 2006, down 0.9 percentage points compared to the fourth quarter of 2005, as higher net revenues were offset by higher operating expenses.

For the full year 2006, income from continuing operations before taxes increased CHF 54 million, or 4%, to CHF 1,359 million compared to 2005. Net revenues increased CHF 127 million, or 4%, to CHF 3,497 million, due to increased net interest income, reflecting higher liability margins, and higher asset-based commissions and fees. Total operating expenses were CHF 2,192 million, an increase of CHF 31 million, or 1%, mainly reflecting higher compensation and benefits. The pre-tax income margin for the full year 2006 was 38.9%, an increase of 0.2 percentage points compared to 2005, driven by higher net revenues.

In the fourth quarter of 2006, Corporate & Retail Banking reported a pre-tax return on average economic risk capital of 49.7%, up 7.3 percentage points compared to the fourth quarter of 2005. The full year 2006 pre-tax return on average economic risk capital was 49.0%, an increase of 7.1 percentage points compared to 2005. The increase in both the fourth quarter and for the full year 2006 reflects a decrease in the average economic risk capital, based on the risk profile of the lending portfolio, and indicating strong profitability in a very competitive and mature market.

The following table presents the results of the Corporate & Retail Banking business:
													12 months
in CHF m			4Q 2006		3Q 2006		4Q 2005		Change in % from 3Q 2006		Change in % from 4Q 2005		2006		2005		Change in % from 2005
Net interest income			582		556		528		5		10		2,179		2,092		4
Total noninterest revenues			314		283		319		11		(2)		1,318		1,278		3
Net revenues			896		839		847		7		6		3,497		3,370		4
Provision for credit losses			(24)		(17)		(23)		41		4		(54)		(96)		(44)
Compensation and benefits			323		281		291		15		11		1,258		1,221		3
Other expenses			265		237		257		12		3		934		940		(1)
Total operating expenses			588		518		548		14		7		2,192		2,161		1
Income from continuing operations before taxes			332		338		322		(2)		3		1,359		1,305		4

The following tables present key information of the Corporate & Retail Banking business:
									12 months
			4Q 2006		3Q 2006		4Q 2005		2006		2005
Cost/income ratio			65.6%		61.7%		64.7%		62.7%		64.1%
Pre-tax income margin			37.1%		40.3%		38.0%		38.9%		38.7%
Net new assets, in CHF bn			1.1		0.2		2.1		1.7		7.6
Average economic risk capital, in CHF m			2,683		2,816		3,041		2,781		3,122
Pre-tax return on average economic risk capital1)			49.7%		48.1%		42.4%		49.0%		41.9%
1) Calculated using a return excluding interest costs for allocated goodwill.

			31.12.06		30.09.06		31.12.05		Change in % from 30.09.06		Change in % from 31.12.05
Assets under management, in CHF bn			156.1		151.0		144.3		3.4		8.2
Mortgage loans, in CHF bn			66.0		66.0		66.3		0.0		(0.5)
Other loans, in CHF bn			33.9		33.9		28.3		0.0		19.8
Non-performing loans/total loans			1.3%		1.4%		1.9%		–		–
Impaired loans/total loans			1.8%		1.9%		2.6%		–		–
Number of branches			215		215		215		0		0

Asset Management

Asset Management combines the discretionary investment management functions of Credit Suisse and offers products across a broad range of investment classes, from equity, fixed income and multi-asset class products to alternative investments such as real estate, hedge funds, private equity and volatility management. Asset Management manages portfolios, mutual funds and other investment vehicles for institutional, government and private clients. Products are offered through both proprietary and third party distribution channels.

Asset Management reported income from continuing operations before taxes of CHF 89 million in the fourth quarter of 2006, a decrease of CHF 152 million, or 63%, from the fourth quarter of 2005, reflecting a decline in net revenues and higher operating expenses. The decrease in net revenues resulted primarily from lower private equity and other investment-related gains compared to the strong fourth quarter of 2005. For the full year 2006, income from continuing operations before taxes was CHF 508 million, a decrease of CHF 498 million, or 50%, from the full year 2005, reflecting lower private equity and other investment-related gains as well as higher operating expenses, partly due to CHF 225 million of realignment costs in 2006.

The realignment of Asset Management continued during the fourth quarter of 2006 as part of the previously announced strategy to strengthen its business through repositioning franchises with low profitability, reshaping the product offering, improving investment and sales processes and reducing the overall cost base. Realignment costs of CHF 33 million in the fourth quarter of 2006 included severance costs of CHF 20 million and intangible asset impairments of CHF 13 million. These realignment costs reflect the substantial completion of the targeted headcount reduction. Asset Management is on track to put its business on a solid and sustainable platform for future growth in 2007 and beyond by leveraging existing strengths and improving the product portfolio.

The following table presents the results of the Asset Management segment:
													12 months
in CHF m			4Q 2006		3Q 2006		4Q 2005		Change in % from 3Q 2006		Change in % from 4Q 2005		2006		2005		Change in % from 2005
Net interest income			(12)		(14)		(22)		(14)		(45)		(65)		(68)		(4)
Commissions and fees			623		581		539		7		16		2,329		2,076		12
Trading revenues			24		16		10		50		140		34		41		(17)
Other revenues			103		109		230		(6)		(55)		563		752		(25)
Total noninterest revenues			750		706		779		6		(4)		2,926		2,869		2
Net revenues			738		692		757		7		(3)		2,861		2,801		2
Provision for credit losses			1		(1)		0		–		–		1		0		–
Compensation and benefits			327		286		252		14		30		1,129		947		19
Other expenses			321		249		264		29		22		1,223		848		44
	of which commission expenses		110		95		86		16		28		370		295		25
Total operating expenses			648		535		516		21		26		2,352		1,795		31
Income from continuing operations before taxes			89		158		241		(44)		(63)		508		1,006		(50)

Asset Management continues to focus on strengthening its presence in key markets and building its investment platform in attractive, high-margin businesses. This was demonstrated in the fourth quarter of 2006 when Credit Suisse announced additional onshore operations in the high-growth market of Brazil, through the acquisition of Hedging-Griffo, a leading asset management company with a large and well-established client base. It manages CHF 9.2 billion in assets under management for high-net worth individuals in Brazil and over the past three years has increased these assets at an average annual growth rate of 38.5%.

Assets under management increased from CHF 659.6 billion as of September 30, 2006 to CHF 669.9 billion as of December 31, 2006, primarily reflecting market and foreign exchange-related movements of CHF 13.2 billion. In the fourth quarter, Asset Management had net asset outflows of CHF 2.9 billion, mainly due to cyclical redemptions in US money market funds. Assets under management increased CHF 80.5 billion from CHF 589.4 billion as of December 31, 2005, reflecting net new assets of CHF 50.8 billion and market and foreign exchange-related movements of CHF 29.7 billion. Net new assets for the full year 2006 included money market assets of CHF 33.4 billion and alternative investments of CHF 12.5 billion. These substantial asset inflows demonstrate Asset Management’s asset gathering capabilities despite the realignment.

Fourth quarter 2006 net revenues were CHF 738 million, a decrease of CHF 19 million, or 3%, from the fourth quarter of 2005. Net revenues before private equity and other investment-related gains were CHF 646 million, an increase of CHF 97 million, or 18%, compared to the fourth quarter of 2005, reflecting the growth in assets under management. Asset management revenues, which consist of management fees from asset management, performance fees and fund administration services provided to clients, increased CHF 72 million, or 14%, compared to the fourth quarter of 2005, mainly driven by the growth in assets under management and higher year-end performance fees. Private equity commissions and fees, which include private equity fund management fees, increased CHF 25 million, or 53%, compared to the fourth quarter of 2005, primarily reflecting higher placement fees for fund raising commitments in connection with private equity funds. Full year 2006 net revenues before private equity and other investment-related gains were CHF 2,359 million, an increase of CHF 256 million, or 12%, compared to the full year 2005. Full year 2006 asset management revenues increased CHF 197 million, or 10%, compared to full year 2005, reflecting higher assets under management. Full year 2006 private equity commissions and fees increased CHF 59 million, or 30%, compared to full year 2005, reflecting increased placement fees.

The following table presents the revenue details of the Asset Management segment:
													12 months
in CHF m			4Q 2006		3Q 2006		4Q 2005		Change in % from 3Q 2006		Change in % from 4Q 2005		2006		2005		Change in % from 2005
Asset management revenues			574		535		502		7		14		2,106		1,909		10
Private equity commissions and fees			72		68		47		6		53		253		194		30
Net revenues before private equityand other investment-related gains			646		603		549		7		18		2,359		2,103		12
Private equity and other investment-related gains			92		89		208		3		(56)		502		698		(28)
Net revenues			738		692		757		7		(3)		2,861		2,801		2

In the fourth quarter of 2006, Asset Management recorded private equity and other investment-related gains of CHF 92 million, a decrease of CHF 116 million, or 56%, from the strong fourth quarter of 2005. Private equity gains, which include gains on investments and performance-related carried interest, are cyclical in nature and in 2005 were considered to be at the high end of the private equity cycle. The fourth quarter of 2006 included a write-down of CHF 36 million on a single investment. Full year 2006 private equity and other investment-related gains were CHF 196 million, or 28%, lower than the strong full year 2005 gains.

The following tables present key information of the Asset Management segment:
									12 months
			4Q 2006		3Q 2006		4Q 2005		2006		2005
Cost/income ratio			87.8%		77.3%		68.2%		82.2%		64.1%
Pre-tax income margin			12.1%		22.8%		31.8%		17.8%		35.9%
Net new assets, in CHF bn			(2.9)		21.2		(0.8)		50.8		19.6
	of which private equity		0.1		1.4		1.3		6.5		4.6
	of which advisory assets		1.0		1.2		3.2		3.6		5.3
Gross margin on assets under management			44.2 bp		43.4 bp		54.0 bp		45.3 bp		54.5 bp
Gross margin on assets under management, excludingprivate equity and other investment-related gains			38.7 bp		37.8 bp		39.1 bp		37.3 bp		40.9 bp
Net margin (pre-tax) on assets under management			5.3 bp		9.9 bp		17.2 bp		8.0 bp		19.6 bp
Average economic risk capital, in CHF m			1,436		1,438		1,276		1,382		1,097
Pre-tax return on average economic risk capital1)			32.4%		51.8%		84.3%		44.7%		99.9%
1) Calculated using a return excluding interest costs for allocated goodwill.

in CHF bn			31.12.06		30.09.06		31.12.05		Change in % from 30.09.06		Change in % from 31.12.05
Assets under management			669.9		659.6		589.4		1.6		13.7
Private equity investments			2.5		2.1		1.4		19.0		78.6

Total operating expenses for the fourth quarter of 2006 were CHF 648 million, an increase of CHF 132 million, or 26%, compared to the same quarter of 2005. Compensation and benefits were CHF 327 million, an increase of CHF 75 million, or 30%, reflecting the ongoing efforts to hire new investment talent and build product development and distribution capabilities. In addition, compensation and benefits included CHF 20 million of severance related to the realignment. Other expenses were CHF 321 million, an increase of CHF 57 million, or 22%, primarily due to higher commission expenses of CHF 24 million, mainly reflecting higher assets under management, a CHF 22 million provision relating to a non-proprietary third-party hedge fund product and intangible asset impairments of CHF 13 million relating to the realignment. Full year 2006 total operating expenses were CHF 2,352 million, an increase of CHF 557 million, or 31%, compared to the full year 2005, reflecting a 19% increase in compensation and benefits and a 44% increase in other expenses, including operating expenses of CHF 225 million relating to the realignment.

The following table presents total assets under management of the Asset Management segment by asset class:
in CHF bn			31.12.06		30.09.06		31.12.05		Change in % from 30.09.06		Change in % from 31.12.05
Money market			101.2		93.7		64.1		8.0		57.9
Fixed income			107.1	1)	118.8		110.0		(9.8)		(2.6)
Balanced			277.3		264.0		254.6		5.0		8.9
Equities			47.0		47.8		47.7		(1.7)		(1.5)
Alternative2)			137.3		135.3		113.0		1.5		21.5
	of which private equity		30.2		30.6		25.5		(1.3)		18.4
Total assets under management			669.9		659.6		589.4		1.6		13.7
	of which discretionary assets		573.7		566.4		500.3		1.3		14.7
	of which advisory assets		96.2		93.2		89.1		3.2		8.0
1) Reflects reclassifications of approximately CHF 10 billion to money market assets and balanced assets. 2) Alternative includes private equity, funds of hedge funds, real estate and indexed products.

Pre-tax income margin for the fourth quarter of 2006 was 12.1%, down 19.7 percentage points from the fourth quarter of 2005, chiefly reflecting the 26% increase in fourth quarter 2006 operating expenses and the decline in private equity and other investment-related gains. Full year 2006 pre-tax income margin was 17.8%, an 18.1 percentage point decrease compared to full year 2005, mainly driven by the significant increases in total operating expenses and lower private equity and other investment-related gains.

Gross margin on assets under management was 44.2 basis points in the fourth quarter of 2006 compared to 54.0 basis points in the fourth quarter of 2005, reflecting the 56% decrease in private equity and other investment-related gains. Gross margin on assets under management, excluding private equity and other investment-related gains, was 38.7 basis points in the fourth quarter of 2006 compared to 39.1 basis points in the fourth quarter of 2005. Gross margin on assets under management, excluding private equity and other investment-related gains, was 37.3 basis points for the full year 2006 compared to 40.9 basis points for the full year 2005, primarily as a result of the change in asset mix.

Pre-tax return on average economic risk capital was 32.4% in the fourth quarter of 2006 compared to 84.3% in the fourth quarter of 2005, reflecting higher position risk from growth initiatives in alternative investments.

Assets under management

Assets under management

Assets under management comprise assets which are placed with Group entities for investment purposes and include discretionary and advisory counterparty assets.

Discretionary assets are assets for which the customer fully transfers the discretionary power to a Group entity with a management mandate. Advisory assets include assets placed with the Group where the client is provided access to investment advice but retains discretion over investment decisions.

As of December 31, 2006, the Group’s assets under management amounted to CHF 1,485.1 billion, an increase of CHF 43.8 billion, or 3.0%, compared to September 30, 2006. Private Banking assets under management increased CHF 36.1 billion in the fourth quarter of 2006, as a result of higher market valuations and net new asset growth. Asset Management reported an increase in assets under management of CHF 10.3 billion, as market and foreign exchange-related movements were offset in part by net asset outflows.

Compared to December 31, 2005, the Group’s assets under management increased by CHF 165.7 billion, or 12.6%, as of December 31, 2006. Private Banking recorded an increase in assets under management of CHF 102.7 billion, or 12.3%, from December 31, 2005 due to strong net new asset growth and higher equity valuations, which was offset in part by the adverse impact of foreign exchange-related movements. Asset Management recorded an increase of CHF 80.5 billion, or 13.7%, in assets under management from December 31, 2005, due to net new assets of CHF 50.8 billion and market and foreign exchange-related movements of CHF 29.7 billion.

The following table sets forth information on assets under management:
in CHF bn			31.12.06		30.09.06		31.12.05		Change in % from 30.09.06		Change in % from 31.12.05
Private Banking			940.3		904.2		837.6		4.0		12.3
Asset Management			669.9		659.6		589.4		1.6		13.7
Less assets managed on behalf of other segments			(125.1)		(122.5)		(107.6)		2.1		16.3
Credit Suisse Group			1,485.1		1,441.3		1,319.4		3.0		12.6
	of which discretionary		656.2		646.5		578.4		1.5		13.5
	of which advisory		828.9		794.8		741.0		4.3		11.9
The level of assets under management in Investment Banking is not considered a key performance indicator and as a result, Investment Banking balances are no longer included in assets under management.

Client assets

Client assets is a broader measure than assets under management as it includes transactional and custody accounts (assets held solely for transaction-related or safekeeping/custody purposes) and assets of corporate clients and public institutions used primarily for cash management or transaction-related purposes.

The following table sets forth information on client assets:
in CHF bn			31.12.06		30.09.06		31.12.05		Change in % from 30.09.06		Change in % from 31.12.05
Private Banking			1,069.7		1,029.1		951.9		3.9		12.4
Asset Management			676.4		666.0		596.0		1.6		13.5
Less client assets managed on behalf of other segments			(125.1)		(122.5)		(107.6)		2.1		16.3
Credit Suisse Group			1,621.0		1,572.6		1,440.3		3.1		12.5
The level of assets under management in Investment Banking is not considered a key performance indicator and as a result, Investment Banking balances are no longer included in client assets.

Net new assets

Net new assets include individual cash and securities transactions and new or repaid loans. Interest and dividend income credited to clients, commissions, interest and fees charged for banking services are not considered as they do not reflect success in acquiring assets under management. Changes due to currency and market movements as well as asset inflows and outflows due to the acquisition or divestiture of businesses are not part of net new assets.

Net new assets were CHF 6.9 billion in the fourth quarter of 2006, a decrease of CHF 24.2 billion compared to the third quarter of 2006. Inflows mainly from the European onshore business and Asia contributed to net new assets of CHF 9.7 billion in Private Banking. In the fourth quarter, Asset Management had net asset outflows of CHF 2.9 billion, in comparison to strong inflows of CHF 21.2 billion in the third quarter of 2006, mainly due to cyclical redemptions in US money market funds.

For the full year 2006, the Group recorded net new assets of CHF 95.4 billion, an increase of CHF 38.0 billion compared to full year 2005. Private Banking’s net new assets of CHF 52.2 billion increased by CHF 1.8 billion, or 3.6%, above the record level attained for 2005. Asset Management generated net new assets of CHF 50.8 billion, an increase of CHF 31.2 billion compared to the full year 2005, primarily in money market and alternative investment assets.

The following table sets forth information on net new assets:
									12 months
in CHF bn			4Q 2006		3Q 2006		4Q 2005		2006		2005
Private Banking			9.7		11.1		8.9		52.2		50.4
Asset Management			(2.9)		21.2		(0.8)		50.8		19.6
Less net new assets managed on behalf of other segments			0.1		(1.2)		(0.1)		(7.6)		(12.6)
Credit Suisse Group			6.9		31.1		8.0		95.4		57.4
The level of assets under management in Investment Banking is not considered a key performance indicator and as a result, Investment Banking balances are no longer included in net new assets.

Capital

Credit Suisse Group

The Group’s consolidated BIS tier 1 ratio was 13.9% as of December 31, 2006, an increase from 10.8% as of September 30, 2006. Risk-weighted assets increased compared to the third quarter of 2006, primarily reflecting an increase in capital requirements in the leveraged finance and commodities trading businesses partially offset by a decrease in market risk equivalents. Tier 1 capital increased CHF 8,017 million from September 30, 2006, with the positive contribution of net income offset by additional dividend accruals and the deduction for shares repurchased through the Group’s share buyback program. In addition, the deduction relating to investment in insurance entities was significantly reduced due to the sale of Winterthur. The Group continued the share buyback program approved by the shareholders at the Annual General Meeting in 2005, repurchasing 76.4 million common shares in the amount of CHF 5.0 billion since the initiation of the program through December 31, 2006. In the fourth quarter of 2006, 13.7 million common shares in the amount of CHF 1.1 billion were repurchased. The Group’s shareholders’ equity increased from CHF 41.6 billion as of September 30, 2006 to CHF 43.6 billion as of December 31, 2006, primarily due to the fourth quarter net income partially offset by the change in US GAAP pension accounting requiring an employer to recognize the funded status of a defined benefit plan on the balance sheet, which reduced shareholders’ equity by CHF 1.8 billion. This change in US GAAP pension accounting had no effect on Tier 1 capital.

For further details, see “Notes to the condensed consolidated financial statements - unaudited - Recently adopted accounting standards - SFAS 158.”

Credit Suisse

Credit Suisse, the bank, reported a consolidated BIS tier 1 ratio of 11.4% as of December 31, 2006 compared to 9.5% as of September 30, 2006. Risk-weighted assets decreased compared to the third quarter of 2006, primarily reflecting a decrease in market risk equivalents partially offset by an increase in capital requirements in the leveraged finance and commodities trading businesses. Tier 1 capital increased CHF 4,294 million from September 30, 2006, with the positive contribution of net income and a reduction in accruals related to future dividend payments. The shareholder’s equity of Credit Suisse increased from CHF 24.4 billion as of September 30, 2006 to CHF 26.0 billion as of December 31, 2006, primarily due to the fourth quarter net income partially offset by the change in US GAAP pension accounting.

The following table sets forth details of BIS data (risk-weighted assets, capital and ratios):
			Credit Suisse Group						Credit Suisse
in CHF m, except where indicated			31.12.06		30.09.06		31.12.05		31.12.06		30.09.06		31.12.05
Risk-weighted positions			240,095		236,448		218,899		219,927		219,060		200,904
Market risk equivalents			13,581		15,691		13,992		12,746		14,691		12,499
Risk-weighted assets			253,676		252,139		232,891		232,673		233,751		213,403
Total shareholders' equity			43,586		41,643		42,118		26,045		24,353		25,788
Reconciliation to tier 1 capital:
	Non-cumulative perpetual preferred securities		2,167		2,167		2,170		1,065		1,055		1,044
	Investment in insurance entities		(22)		(4,321)		(4,179)		(22)		(13)		(12)
	Adjustments for goodwill, minority interests, disallowed unrealized gains on fair value measurement, own shares, dividend accruals and pensions		(10,584)		(12,359)		(13,761)		(488)		(3,089)		(6,257)
Tier 1 capital			35,147		27,130		26,348		26,600		22,306		20,563
Tier 1 ratio			13.9%		10.8%		11.3%		11.4%		9.5%		9.6%
Total BIS regulatory capital			46,764		33,269		31,918		38,441		33,235		29,815
Total BIS regulatory capital ratio			18.4%		13.2%		13.7%		16.5%		14.2%		14.0%
The Swiss Federal Banking Commission has advised that Credit Suisse Group and Credit Suisse may continue to include as tier 1 capital CHF 2.2 billion and CHF 6.2 billion, respectively, as of December 31, 2006 (September 30, 2006: CHF 2.2 billion and CHF 6.3 billion, respectively and December 31, 2005: CHF 2.2 billion and CHF 6.5 billion, respectively) of equity from VIEs that are deconsolidated under FIN 46(R).

Risk management

Credit Suisse Group’s overall position risk, measured on the basis of Economic Risk Capital (ERC), increased 9% in the fourth quarter of 2006 compared with the third quarter of 2006. Average Value-at-Risk (VaR) for the Group’s trading books decreased 13% during the fourth quarter of 2006 to CHF 70 million, mainly due to reduced interest rate and equity exposure. The loan portfolios across the Group continued to benefit from a favorable credit environment, resulting in a net release of provisions for credit losses of CHF 20 million in the fourth quarter of 2006.

Economic Risk Capital trends

The Group assesses risk and economic capital adequacy using its ERC model. ERC is designed to measure all quantifiable risks associated with the Group’s activities on a consistent and comprehensive basis. The Group assigns ERC for position risk, operational risk and other risk. Position risk measures the potential annual economic loss associated with market and credit 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, as non-trading activities generally are not marked to market through earnings.

The Group continually reviews the methodology used to measure ERC in order to make sure the model remains relevant as markets and business strategies evolve. If the ERC methodology changes based on these reviews, prior period balances are restated in order to show meaningful trends.

In the fourth quarter of 2006, the Group's one-year, 99% position risk ERC increased 9% compared to the third quarter of 2006, mainly due to increases in commercial real estate loan originations, interest rate risk on trading positions and emerging market exposures, primarily Eastern Europe and Asia.

The following table sets forth the Group's risk profile, using ERC as the common risk measure:
in CHF m			31.12.06		Change in % from 30.09.06		Change analysis: brief summary 31.12.06 vs 30.09.06
Fixed income trading ERC1)			2,692		19%		Increased interest rate, foreign exchange and commodity exposures in Investment Banking.
Equity trading & investment ERC			2,432		8%		Due to an increase in funded private equity positions in Asset Management.
Swiss corporate & retail lending ERC			2,090		(4%)		Lower due to further improvements in the credit risk profile.
International lending ERC & counterparty ERC			2,965		6%		Higher in Investment Banking due to increased leveraged finance exposure.
Emerging markets ERC			1,645		13%		Increased emerging market exposures in Investment Banking, primarily in Eastern Europe and Asia.
Real estate ERC & structured asset ERC2)			4,981		14%		Increased commercial real estate loan originations and residential loan inventory in Investment Banking.
Simple sum across risk categories			16,805		10%
Diversification benefit			(4,816)		12%
Position Risk ERC (99%)			11,989		9%
Prior period balances have been restated for methodology changes in order to show meaningful trends.
1) This category comprises fixed income trading exposures, foreign exchange exposures, commodity exposures and insurance (investment banking). 2) This category comprises the real estate investments of the Group, commercial and residential real estate and asset-backed securities exposures and real estate acquired at auction.

The following table sets forth the trading-related market risk exposure for Credit Suisse Group andInvestment Banking, as measured by scaled one-day, 99% VaR:
			4Q 2006								3Q 2006												4Q 2005
in CHF m			Minimum		Maximum		Average		31.12.06		Minimum		Maximum		Average		30.09.06						Minimum		Maximum		Average		31.12.05
Credit Suisse Group
Interest rate & credit spread			42		63		49		62		43		63		51		46						36		74		57		69
Foreign exchange rate			9		28		19		24		11		30		20		17						6		19		11		11
Equity			44		69		57		57		49		73		61		60						40		63		49		57
Commodity			6		16		12		15		6		15		9		8						5		15		10		11
Diversification benefit			–	1)	–	1)	(67)		(69)		–	1)	–	1)	(61)		(78)						–	1)	–	1)	(58)		(61)
Total			53		99		70		89		53		106		80		53						51		88		69		87
Investment Banking
Interest rate & credit spread			41		63		48		62		41		63		50		43						49		73		60		68
Foreign exchange rate			8		27		19		24		11		30		20		17						6		20		11		11
Equity			44		70		57		57		49		73		61		60						40		63		49		57
Commodity			6		16		12		15		6		15		9		8						4		15		9		11
Diversification benefit			–	1)	–	1)	(65)		(69)		–	1)	–	1)	(60)		(75)						–	1)	–	1)	(58)		(60)
Total			52		100		71		89		53		106		80		53						57		88		71		87
Represents 10-day VaR scaled to a one-day holding period.
1) As the minimum and maximum occur on different days for different risk types, it is not meaningful to calculate a portfolio diversification benefit.

Trading risks

The Group primarily assumes trading risks through the trading activities of the Investment Banking segment. The other segments also engage in trading activities, but to a much lesser extent. Trading risks are measured using VaR as one of a range of risk measurement tools. VaR is the potential loss in fair value of trading positions due to adverse market movements over a defined time horizon and for a specified confidence level. In order to show the aggregate market risk in the Group’s trading books, the table above shows the trading-related market risk on a consolidated basis, as measured by a 10-day VaR scaled to a one-day holding period and based on a 99% confidence level. This means that there is a 1-in-100 chance of incurring a daily mark-to-market trading loss that is at least as large as the reported VaR.

Credit Suisse Group’s average one-day, 99% VaR in the fourth quarter of 2006 was CHF 70 million compared to CHF 80 million during the third quarter of 2006. This was mainly due to reduced interest rate and equity exposure. The VaR increased significantly towards the end of the fourth quarter due to increased interest rate, credit and foreign exchange exposure in the fixed income area, as well as increased commodities exposure. Various techniques are used to assess the accuracy of the VaR model, including backtesting. Daily backtesting profit and loss is compared with VaR calculated using 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. On average, an accurate one-day, 99% VaR model should have no more than four backtesting exceptions per year. A backtesting exception occurs when the daily loss exceeds the daily VaR estimate.

Credit Suisse Group had no backtesting exceptions during the fourth quarter of 2006 and four backtesting exceptions for the full year 2006. The four exceptions occurred during the second quarter of 2006, after a period of two years with no exceptions. The exceptions were driven by equity and foreign exchange positions during May. During this period, market volatility for those positions was significantly larger than the volatility reflected in the VaR model, which uses historic data for the preceding two years. The VaR model is also subject to continuous assessment and evaluation to ensure it remains accurate given current market conditions and positions.

The histogram entitled “Credit Suisse Group trading revenue” reflects the distribution of daily actual trading revenues during the fourth quarters of 2006 and 2005. The width of this distribution provides another indication of the day-to-day risk in our trading activities.

Loan exposure

The Group’s total loan exposure increased 1% to CHF 208.1 billion as of December 31, 2006 compared with September 30, 2006, primarily due to increases in loans to financial institutions and real estate loans in Investment Banking.

Compared to September 30, 2006, the Group’s total non-performing loans declined 11% and total impaired loans declined 9% as of December 31, 2006. Both Private Banking and Investment Banking reported reductions in total impaired loans during the fourth quarter.

In the fourth quarter of 2006, the Group recorded a net release of provisions for credit losses of CHF 20 million, compared to a net release of provisions of CHF 40 million in the third quarter of 2006. 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 from 65% as of September 30 to 70% as of December 31, 2006, while coverage of total non-performing loans improved from 85% to 93%. Improvement was reported in both Private Banking and Investment Banking.

The following table sets forth the gross loan exposure for the Group and its primary lending segments:
			Investment Banking						Private Banking						Credit Suisse Group
in CHF m			31.12.06		30.09.06		31.12.05		31.12.06		30.09.06		31.12.05		31.12.06		30.09.06		31.12.05	1)
Consumer loans:
Mortgages			0		0		0		76,465		75,977		75,122		76,465		75,977		80,779
Loans collateralized by securities			0		0		0		16,197		16,846		17,203		16,197		16,846		17,207
Other			1,110		991		816		3,645		3,843		2,960		4,755		4,834		3,787
Consumer loans			1,110		991		816		96,307		96,666		95,285		97,417		97,657		101,773
Corporate loans:
Real estate			1,491		497		508		25,770		25,265		24,728		27,261		25,762		26,597
Commercial & industrial loans			22,616		23,867		16,204		40,765		40,778		37,747		63,553		64,816		55,295
Loans to financial institutions			18,658		16,501		16,979		762		747		615		19,420		17,248		19,794
Governments and public institutions			736		771		784		1,216		1,251		1,380		1,952		2,022		4,389
Corporate loans			43,501		41,636		34,475		68,513		68,041		64,470		112,186		109,848		106,075
Loans, gross			44,611		42,627		35,291		164,820		164,707		159,755		209,603		207,505		207,848
(Unearned income)/deferred expenses, net			(71)		(63)		(64)		78		84		118		8		21		64
Allowance for loan losses			(255)		(255)		(465)		(1,228)		(1,271)		(1,726)		(1,484)		(1,527)		(2,241)
Total loans, net			44,285		42,309		34,762		163,670		163,520		158,147		208,127		205,999		205,671
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 for the Group and its primary lending segments:
			Investment Banking						Private Banking						Credit Suisse Group
in CHF m			31.12.06		30.09.06		31.12.05		31.12.06		30.09.06		31.12.05		31.12.06		30.09.06		31.12.05	1)
Non-performing loans			152		207		143		895		1,002		1,157		1,047		1,209		1,323
Non-interest earning loans			2		10		11		543		570		830		545		580		845
Total non-performing loans			154		217		154		1,438		1,572		1,987		1,592		1,789		2,168
Restructured loans			0		0		55		22		21		21		22		21		77
Potential problem loans			34		36		303		483		492		726		517		529		1,074
Total other impaired loans			34		36		358		505		513		747		539		550		1,151
Total impaired loans, gross			188		253		512		1,943		2,085		2,734		2,131		2,339		3,319
Valuation allowances as % of
	Total non-performing loans		166%		118%		302%		85%		81%		87%		93%		85%		103%
	Total impaired loans		136%		101%		91%		63%		61%		63%		70%		65%		68%

The following table sets forth the movements in the allowance for loan losses for the Group and its primary lending segments:
			Investment Banking						Private Banking						Credit Suisse Group
in CHF m			4Q 2006		3Q 2006		4Q 2005		4Q 2006		3Q 2006		4Q 2005		4Q 2006		3Q 2006		4Q 2005	1)
Balance beginning of period			255		376		418		1,271		1,359		1,976		1,527		1,736		2,445
Net additions chargedto income statement			16		(35)		5		(42)		(19)		(20)		(25)		(54)		(9)
	Gross write-offs		(33)		(111)		(58)		(42)		(82)		(239)		(76)		(192)		(307)
	Recoveries		19		2		81		49		7		6		68		10		86
Net write-offs			(14)		(109)		23		7		(75)		(233)		(8)		(182)		(221)
Allowances acquired/(deconsolidated) and provisions for interest			3		16		13		(5)		3		0		(1)		18		9
Foreign currency translation impactand other adjustments, net			(5)		7		6		(3)		3		3		(9)		9		17
Balance end of period			255		255		465		1,228		1,271		1,726		1,484		1,527		2,241
Provision for credit losses disclosed in the Credit Suisse Group unaudited condensed consolidated statements of income also includes provisions for lending-related exposure of CHF 5 million, CHF 14 million and CHF -25 million for 4Q 2006, 3Q 2006 and 4Q 2005, respectively.
1) Not adjusted for discontinued operations.

Condensed consolidated financial statements

Consolidated statements of income (unaudited)

													12 months
in CHF m			4Q 2006		3Q 2006		4Q 2005		Change in % from 3Q 2006		Change in % from 4Q 2005		2006		2005		Change in % from 2005
Interest and dividend income			13,017		12,825		10,391		1		25		50,269		36,116		39
Interest expense			(11,590)		(11,218)		(9,085)		3		28		(43,703)		(29,198)		50
Net interest income			1,427		1,607		1,306		(11)		9		6,566		6,918		(5)
Commissions and fees			5,069		3,919		4,044		29		25		17,647		14,323		23
Trading revenues			2,956		1,693		1,286		75		130		9,428		5,634		67
Other revenues			1,362		857		930		59		46		4,962		3,614		37
Total noninterest revenues			9,387		6,469		6,260		45		50		32,037		23,571		36
Net revenues			10,814		8,076		7,566		34		43		38,603		30,489		27
Provision for credit losses			(20)		(40)		(34)		(50)		(41)		(111)		(144)		(23)
Compensation and benefits			4,100		3,427		3,984		20		3		15,697		13,974		12
Other expenses			2,420		2,229		2,557		9		(5)		8,717		9,258		(6)
Total operating expenses			6,520		5,656		6,541		15		0		24,414		23,232		5
Income from continuing operations before taxes,minority interests, extraordinary items andcumulative effect of accounting changes			4,314		2,460		1,059		75		307		14,300		7,401		93
Income tax expense			805		367		(108)		119		–		2,389		927		158
Minority interests			910		625		490		46		86		3,630		1,948		86
Income from continuing operations beforeextraordinary items and cumulative effectof accounting changes			2,599		1,468		677		77		284		8,281		4,526		83
Income from discontinued operations, net of tax			2,074		424		426		389		387		3,070		1,310		134
Extraordinary items, net of tax			0		0		0		–		–		(24)		0		–
Cumulative effect of accounting changes, net of tax			0		0		0		–		–		0		14		(100)
Net income			4,673		1,892		1,103		147		324		11,327		5,850		94

12 months

in CHF

4Q 2006