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
May 16, 2018
Commission File Number 001-15244
CREDIT SUISSE GROUP AG
(Translation of registrant’s name into English)
Paradeplatz 8, CH 8001 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.
   Form 20-F      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.
   Yes      No   
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-.





Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
CREDIT SUISSE GROUP AG
 (Registrant)
 
 
Date: May 16, 2018
By:
/s/ Joachim Oechslin
Joachim Oechslin
Chief Risk Officer
By:
/s/ David R. Mathers
David R. Mathers
Chief Financial Officer










For purposes of this report, unless the context otherwise requires, the terms “Credit Suisse,” “the Group,” “we,” “us” and “our” mean Credit Suisse Group AG and its consolidated subsidiaries. The business of Credit Suisse AG, the direct bank subsidiary of the Group, is substantially similar to the Group, and we use these terms to refer to both when the subject is the same or substantially similar. We use the term “the Bank” when we are only referring to Credit Suisse AG and its consolidated subsidiaries.
Abbreviations are explained in the List of abbreviations in the back of this report.
Publications referenced in this report, whether via website links or otherwise, are not incorporated into this report.
In various tables, use of “–” indicates not meaningful or not applicable.
Rounding differences may occur within the tables.





Pillar 3 and regulatory disclosures 1Q18
Credit Suisse Group AG

Introduction
Risk-weighted assets
Reconciliation requirements
Additional regulatory disclosures
List of abbreviations
Cautionary statement regarding forward-looking information





Introduction
General
This report as of March 31, 2018 for the Group is based on the revised Circular 2016/1 “Disclosure – banks” (FINMA circular) issued by the Swiss Financial Market Supervisory Authority FINMA (FINMA). The FINMA circular includes the implementation of the revised Pillar 3 disclosure requirements issued by the Basel Committee on Banking Supervisions (BCBS) in January 2015. This document should be read in conjunction with the Pillar 3 and regulatory disclosures – Credit Suisse Group AG 4Q17, the Credit Suisse Annual Report 2017 and the Credit Suisse 1Q18 Financial Report, which includes important information on regulatory capital and risk management (specific references have been made herein to these documents) and regulatory developments and proposals.
The highest consolidated entity in the Group to which the FINMA circular applies is Credit Suisse Group.
This report is produced and published quarterly, in accordance with FINMA requirements. The reporting frequency for each disclosure requirement is either annual, semi-annual or quarterly.
These disclosures were verified and approved internally in line with our board-approved policy on disclosure controls and procedures. The information in this report is subject to the same level of internal control processes as the information provided by the Group for its financial reporting. This report has not been audited by the Group’s external auditors.
> Refer to “Pillar 3 and regulatory disclosures – Credit Suisse Group AG 4Q17” under credit-suisse.com/regulatorydisclosures for the annual qualitative disclosures required by the FINMA circular.
For certain prescribed table formats where line items have zero balances, such line items have not been presented.
Other regulatory disclosures
In connection with the implementation of Basel III, certain regulatory disclosures for the Group and certain of its subsidiaries are required. The Group’s Pillar 3 disclosure, regulatory disclosures, additional information on capital instruments, including the main features and terms and conditions of regulatory capital instruments that form part of the eligible capital base, G-SIB financial indicators, reconciliation requirements, leverage ratios and certain liquidity disclosures as well as regulatory disclosures for subsidiaries can be found on our website.
> Refer to credit-suisse.com/regulatorydisclosures for additional information.
2
Risk-weighted assets
Overview
The following table provides an overview of total risk-weighted assets (RWA) forming the denominator of the risk-based capital requirements.
OV1 – Overview of risk-weighted assets and capital requirements 
     
Risk-weighted assets		 Capital
requirement		 1
end of 1Q18 4Q17 1Q18
CHF million   
Credit risk (excluding counterparty credit risk) 123,717 121,706 9,897
   of which standardized approach (SA)  11,493 10,511 919
   of which internal rating-based (IRB) approach  112,224 111,195 8,978
Counterparty credit risk 23,496 24,664 1,880
   of which standardized approach for counterparty credit risk (SA-CCR) 2 5,065 5,492 3 405
   of which internal model method (IMM) 4 18,431 19,172 3 1,475
      of which derivatives and SFTs  15,188 14,983 1,215
Equity positions in the banking book 7,380 8,218 590
Settlement risk 335 150 27
Securitization exposures in the banking book 10,549 10,731 5 844
   of which securitization internal ratings-based approach (SEC-IRBA)  5,482 – 439
   of which securitization external ratings-based approach (SEC-ERBA), including internal assessment approach (IAA)  3,144 – 251
   of which securitization standardized approach (SEC-SA)  1,923 – 154
Amounts below the thresholds for deduction (subject to 250% risk weight) 10,786 11,043 863
Total credit risk  176,263 176,512 14,101
Total market risk  21,639 21,290 1,731
   of which standardized approach (SA)  3,620 3,765 886
   of which internal model approach (IMA)  18,019 17,525 845
Total operational risk  73,113 75,013 5,849
   of which advanced measurement approach (AMA)  73,113 75,013 5,849
Floor adjustment 6 0 0 0
Total  271,015 272,815 21,681
1
Calculated as 8% of risk-weighted assets based on BIS total capital minimum requirements excluding capital conservation buffer and G-SIB buffer requirements.
2
Reported under the current exposure method.
3
Prior period has been corrected.
4
Includes RWA relating to advanced credit valuation adjustment and central counterparties of CHF 5,806 million and CHF 7,177 million as of the end of 1Q18 and 4Q17, respectively.
5
During 1Q18 there was a methodology change. Prior period number is calculated as per the old methodology.
6
Credit Suisse is not subject to a floor adjustment because current capital requirements and deductions exceed 80% of those under Basel I.
RWA movements in 1Q18
RWA decreased CHF 1.8 billion to CHF 271.0 billion as of the end of 1Q18 compared to CHF 272.8 billion as of the end of 4Q17, primarily driven by a foreign exchange impact, mainly in credit risk, and methodology and policy changes, mainly in operational risk. These decreases were partially offset by increases resulting from movements in risk levels in market risk.
RWA flow statements for credit risk, counterparty credit risk (CCR) and market risk are presented below.
> Refer to “Risk-weighted assets” (pages 61 to 62) in II – Treasury, risk, balance sheet and off-balance sheet – Capital Management in the Credit Suisse 1Q18 Financial Report for further information on movements in risk-weighted assets in 1Q18.
3
Risk-weighted assets flow statements
Credit risk and counterparty credit risk
The following table presents the definitions of the RWA flow statements components for credit risk and CCR.
Definition of risk-weighted assets movement components related to credit risk and CCR
Description Definition
Asset size  Represents changes arising in the ordinary course of business (including new businesses)
Asset quality/Credit quality of counterparties  Represents changes in average risk weighting across credit risk classes
Model and parameter updates  Represents movements arising from updates to models and recalibrations of parameters
Methodology and policy changes   Represents movements due to methodology changes in calculations driven by regulatory policy
changes, including both revisions to existing regulations and new regulations
Acquisitions and disposals  Represents changes in book sizes due to acquisitions and disposals of entities
Foreign exchange impact  Represents changes in exchange rates of the transaction currencies compared to the Swiss franc
Other  Represents changes that cannot be attributed to any other category
Credit risk RWA movements in 1Q18
The following table presents the 1Q18 flow statement explaining the variations in the credit risk RWA determined under an IRB approach.
CR8 – Risk-weighted assets flow statements of credit risk exposures under IRB
1Q18 RWA
CHF million   
Risk-weighted assets at beginning of period  111,195
Asset size 1,857
Asset quality (817)
Model and parameter updates 310
Methodology and policy changes 664
Foreign exchange impact (985)
Risk-weighted assets at end of period  112,224
Credit risk RWA under IRB increased CHF 1.0 billion to CHF 112.2 billion as of the end of 1Q18 compared to CHF 111.2 billion as of the end of 4Q17, primarily driven by increases related to asset size and increases resulting from methodology and policy changes, partially offset by a foreign exchange impact and decreases related to asset quality.
The increase related to asset size was mainly due to increases in lending exposures. The increase in methodology and policy changes primarily reflected an additional phase-in of the multiplier on income producing real estate (IPRE) and non-IPRE exposures and an additional phase-in of a multiplier on certain investment banking corporate exposures.
The decrease related to asset quality was mainly due to a reduction in lending risk with corporate and private clients.
Counterparty credit risk RWA movements in 1Q18
The following table presents the 1Q18 flow statement explaining changes in CCR RWA determined under the Internal Model Method (IMM) for CCR (derivatives and SFTs).
CCR7 – Risk-weighted assets flow statements of CCR exposures under IMM
1Q18 RWA
CHF million   
Risk-weighted assets at beginning of period  14,983
Asset size 662
Credit quality of counterparties 95
Model and parameter updates (338)
Methodology and policy changes 48
Foreign exchange impact (262)
Risk-weighted assets at end of period  15,188
As of the end of 1Q18, CCR RWA under IMM was stable compared to the end of 4Q17, reflecting increases related to asset size offset by decreases related to model updates and a foreign exchange impact. The increase related to asset size were primarily due to increases in derivative exposures. The decrease related to model updates reflected a policy change for the rating of small exposures.
4
Market risk
The following table presents the definitions of the RWA flow statements components for market risk.
Definitions of risk-weighted assets movement components related to market risk
Description Definition
RWA as of the end of the previous and current reporting periods  Represents RWA at quarter-end
Regulatory adjustment  Indicates the difference between RWA and RWA (end of day) at beginning and end of period
RWA as of the previous and current quarters end (end of day)    For a given component (e.g. VaR) it refers to the RWA that would be computed if the snapshot
quarter end figure of the component determines the quarter end RWA, as opposed to a 60-day
average for regulatory
Movement in risk levels  Represents movements due to position changes
Model and parameter updates  Represents movements arising from updates to model parameters and model changes
Methodology and policy changes   Represents movements due to methodology changes in calculations driven by regulatory policy
changes, including both revisions to existing regulations and new regulations
Acquisitions and disposals  Represents changes in book sizes due to acquisitions and disposals of entities
Foreign exchange impact  Represents changes in exchange rates of the transaction currencies compared to the Swiss franc
Other  Represents changes that cannot be attributed to any other category
Market risk RWA movements in 1Q18
The following table presents the 1Q18 flow statement explaining variations in the market risk RWA determined under an internal model approach (IMA).
MR2 – Risk-weighted assets flow statements of market risk exposures under an IMA

1Q18		 Regulatory
VaR		 Stressed
VaR
IRC
Other		 1
Total RWA
CHF million   
Risk-weighted assets at beginning of period  2,308 5,498 1,910 7,809 17,525
Regulatory adjustment 672 (133) (545) 373 367
Risk-weighted assets at beginning of period (end of day)  2,980 5,365 1,365 8,182 17,892
Movement in risk levels 265 (1,154) (39) (231) (1,159)
Model and parameter updates 171 (89) (31) 0 51
Methodology and policy changes (133) 16 (52) (387) (556)
Foreign exchange impact (17) (58) (5) (66) (146)
Risk-weighted assets at end of period (end of day)  3,266 4,080 1,238 7,498 16,082
Regulatory adjustment (550) 1,347 1,179 (39) 1,937
Risk-weighted assets at end of period  2,716 5,427 2,417 7,459 18,019
1
Risks not in VaR.
As of the end of 1Q18, market risk RWA under an internal model approach increased slightly compared to the end of 4Q17, primarily due to increases in IRC and regulatory VaR reflecting movements in risk levels. These increases were partially offset by a reduction in risks not in VaR from methodology changes.
5
Reconciliation requirements
Balance sheet
The following table shows the balance sheet as published in the consolidated financial statements of the Group and the balance sheet under the regulatory scope of consolidation. The reference indicates how such assets and liabilities are considered in the composition of regulatory capital.
> Refer to “Principles of consolidation” (page 8) in Linkages between financial statements and regulatory disclosures – Differences between accounting and regulatory scopes of consolidation in the Pillar 3 and regulatory disclosures – Credit Suisse Group AG 4Q17 for information on key differences between the accounting and the regulatory scope of consolidation.
> Refer to “Note 3 – Business developments and subsequent events” (page 95) in the Credit Suisse 1Q18 Financial Report for information on changes in the scope of consolidation.
> Refer to “Note 39 – Significant subsidiaries and equity method investments” (pages 383 to 385) in the Credit Suisse Annual Report 2017 for a list of significant subsidiaries and associated entities.
Balance sheet
   Balance sheet

end of 1Q18
Financial
statements		 Regulatory
scope of
consolidation		 Reference to
composition
of capital
Assets (CHF million)   
Cash and due from banks 118,164 117,949
Interest-bearing deposits with banks 730 1,122
Central bank funds sold, securities purchased under resale agreements and securities borrowing transactions 121,170 113,428
Securities received as collateral, at fair value 41,227 41,227
Trading assets, at fair value 140,201 134,907
Investment securities 2,146 1,560
Other investments 5,487 5,467
Net loans 283,854 284,455
Premises and equipment 4,677 4,742
Goodwill 4,667 4,671 a
Other intangible assets 212 212
   of which other intangible assets (excluding mortgage servicing rights)  62 62 b
Brokerage receivables 52,739 52,739
Other assets 33,778 32,780
   of which deferred tax assets related to net operating losses  2,046 2,046 c
   of which deferred tax assets from temporary differences  3,182 2,781 d
   of which defined-benefit pension fund net assets  2,389 2,389 e
Total assets  809,052 795,259
6
Balance sheet (continued)
   Balance sheet

end of 1Q18
Financial
statements		 Regulatory
scope of
consolidation		 Reference to
composition
of capital
Liabilities and equity (CHF million)   
Due to banks 18,858 19,391
Customer deposits 368,382 368,493
Central bank funds purchased, securities sold under repurchase agreements and securities lending transactions 27,579 27,579
Obligation to return securities received as collateral, at fair value 41,227 41,227
Trading liabilities, at fair value 44,755 44,795
Short-term borrowings 31,872 24,519
Long-term debt 166,166 165,039
Brokerage payables 37,838 37,838
Other liabilities 29,678 23,620
Total liabilities  766,355 752,501
   of which additional tier 1 instruments, fully eligible  12,719 12,719 g
   of which additional tier 1 instruments subject to phase-out  2,759 2,759 h
   of which tier 2 instruments, fully eligible  4,015 4,015 i
   of which tier 2 instruments subject to phase-out  2,385 2,385 j
Common shares 102 102
Additional paid-in capital 35,933 35,933
Retained earnings 25,643 25,610
Treasury shares, at cost (287) (283)
Accumulated other comprehensive income/(loss) (18,851) (18,823)
Total shareholders' equity 1 42,540 42,539
Noncontrolling interests 2 157 219
Total equity  42,697 42,758
Total liabilities and equity  809,052 795,259
1
Eligible as CET1 capital, prior to regulatory adjustments.
2
The difference between the accounting and regulatory scope of consolidation primarily represents private equity and other fund type vehicles, which FINMA does not require to consolidate for capital adequacy reporting.
7
Composition of BIS regulatory capital
The following tables provide details on the composition of Bank for International Settlements (BIS) regulatory capital and details on common equity tier 1 (CET1) capital adjustments subject to phase-in as well as details on additional tier 1 capital and tier 2 capital.
Composition of BIS regulatory capital
end of 1Q18
Eligible capital (CHF million)         
Total shareholders' equity (US GAAP)  42,540
Regulatory adjustments (560) 1
Adjustments subject to phase-in (6,960) 2
CET1 capital  35,020
Additional tier 1 instruments 12,194 3
Additional tier 1 instruments subject to phase-out 2,759 4
Additional tier 1 capital  14,953
Tier 1 capital  49,973
Tier 2 instruments 4,015 5
Tier 2 instruments subject to phase-out 781
Tier 2 capital  4,796
Total eligible capital  54,769
1
Includes regulatory adjustments not subject to phase-in, including a cumulative dividend accrual.
2
Reflects 100% phase-in deductions, including goodwill, other intangible assets and certain deferred tax assets.
3
Consists of high-trigger and low-trigger capital instruments. Of this amount, CHF 7.5 billion consists of capital instruments with a capital ratio write-down trigger of 7% and CHF 4.7 billion consists of capital instruments with a capital ratio write-down trigger of 5.125%.
4
Includes hybrid capital instruments that are subject to phase-out.
5
Consists of low-trigger capital instruments with a capital ratio write-down trigger of 5%.
8
The following tables provide details on CET1 capital adjustments subject to phase-in and details on additional tier 1 capital and tier 2 capital. The column “Transition amount” represents the amounts that have been recognized in eligible capital as of March 31, 2018.
Details on CET1 capital adjustments subject to phase-in

end of 1Q18
Balance
sheet		 Reference
to balance
sheet		 1
Regulatory
adjustments

Total
Transition
amount		 2
CET1 capital adjustments subject to phase-in (CHF million)   
Goodwill 4,671 a (7) 3 4,664 (4,664)
Other intangible assets (excluding mortgage-servicing rights) 62 b (5) 4 57 (57)
Deferred tax assets that rely on future profitability (excluding temporary differences) 2,046 c – 2,046 (2,046)
Shortfall of provisions to expected losses – 463 463 (463)
Gains/(losses) due to changes in own credit on fair-valued liabilities – (2,228) (2,228) 2,228
Defined-benefit pension assets 2,389 e (545) 4 1,844 (1,844)
Investments in own shares – – – (213)
Other adjustments 5 – – – 99
Amounts above 10% threshold 2,781 (2,781) 0 0
   of which deferred tax assets from temporary differences  2,781 d (2,781) 6 0 0
Adjustments subject to phase-in to CET1 capital  (6,960)
Rounding differences may occur.
1
Refer to the balance sheet under regulatory scope of consolidation in the table "Balance sheet". Only material items are referenced to the balance sheet.
2
Reflects 100% phase-in deductions, including goodwill, other intangible assets and certain deferred tax assets.
3
Represents related deferred tax liability and goodwill on equity method investments.
4
Represents related deferred tax liability.
5
Includes cash flow hedge reserve.
6
Includes threshold adjustments of CHF (3,408) million and an aggregate of CHF 627 million related to the add-back of deferred tax liabilities on goodwill, other intangible assets, mortgage servicing rights and pension assets that are netted against deferred tax assets under US GAAP.
Details on additional tier 1 capital and tier 2 capital

end of 1Q18
Balance
sheet		 Reference
to balance
sheet		 1
Regulatory
adjustments

Total
Transition
amount
Additional tier 1 capital (CHF million)   
Additional tier 1 instruments 2 12,719 g (525) 3 12,194 12,194
Additional tier 1 instruments subject to phase-out 2 2,759 h – 2,759 2,759
Total additional tier 1 instruments  14,953
Tier 2 capital (CHF million)   
Tier 2 instruments 4,015 i – 4,015 4,015
Tier 2 instruments subject to phase-out 2,385 j (1,604) 4 781 781
Tier 2 capital  4,796
1
Refer to the balance sheet under regulatory scope of consolidation in the table "Balance sheet". Only material items are referenced to the balance sheet.
2
Classified as liabilities under US GAAP.
3
Includes the reversal of gains/(losses) due to changes in own credit spreads on fair valued capital instruments.
4
Primarily includes the impact of the prescribed amortization requirements as instruments move closer to their maturity.
9
Additional information
end of 1Q18
Amounts below the thresholds for deduction (before risk weighting) (CHF million)      
Non-significant investments in BFI entities  2,653 
   Significant investments in BFI entities  779
   Mortgage servicing rights  128 1
   Deferred tax assets arising from temporary differences  3,408 1
Applicable caps on the inclusion of provisions in tier 2 (CHF million)      
Cap on inclusion of provisions in tier 2 under standardized approach 71
Cap for inclusion of provisions in tier 2 under internal ratings-based approach 823
1
Net of related deferred tax liability.
10
Additional regulatory disclosures
Swiss capital requirements
The FINMA circular requires certain additional disclosures for systemically relevant financial institutions and stand-alone banks. The following tables show the capital requirements based on capital ratios and leverage ratio.
> Refer to “Swiss requirements” (pages 56 to 58) in II – Treasury, risk, balance sheet and off-balance sheet in the Credit Suisse 1Q18 Financial Report for further information on Swiss capital requirements.
Swiss capital requirements and metrics
   Phase-in Look-through

end of 1Q18
CHF million		 in %
of RWA
CHF million		 in %
of RWA
Swiss risk-weighted assets                           
Swiss risk-weighted assets 271,584 – 271,584 –
Risk-based capital requirements (going-concern) based on Swiss capital ratios                           
Total 35,479 13.064 39,390 14.504
   of which CET1: minimum  14,666 5.4 12,221 4.5
   of which CET1: buffer  11,026 4.06 14,937 5.5
   of which CET1: countercyclical buffers  553 0.204 553 0.204
   of which additional tier 1: minimum  7,061 2.6 9,505 3.5
   of which additional tier 1: buffer  2,173 0.8 2,173 0.8
Swiss eligible capital (going-concern)                           
Swiss CET1 capital and additional tier 1 capital 1 51,116 18.8 47,101 17.3
   of which CET1 capital 2 34,907 12.9 34,907 12.9
   of which additional tier 1 high-trigger capital instruments  7,530 2.8 7,530 2.8
   of which additional tier 1 low-trigger capital instruments 3 4,664 1.7 4,664 1.7
   of which tier 2 low-trigger capital instruments 4 4,015 1.5 0 0.0
Risk-based requirement for additional total loss-absorbing capacity (gone-concern) based on Swiss capital ratios                           
Total 20,787 5 7.654 5 31,341 11.54
Eligible additional total loss-absorbing capacity (gone-concern)                           
Total 36,218 6 13.3 35,974 13.2
   of which bail-in instruments  31,959 11.8 31,959 11.8
Rounding differences may occur.
1
Excludes tier 1 capital which is used to fulfill gone-concern requirements.
2
Excludes CET1 capital which is used to fulfill gone-concern requirements.
3
If issued before July 1, 2016, such capital instruments qualify as additional tier 1 high-trigger capital instruments until their first call date according to the transitional Swiss "Too Big to Fail" rules.
4
If issued before July 1, 2016, such capital instruments qualify as additional tier 1 high-trigger capital instruments no later than December 31, 2019 according to the transitional Swiss "Too Big to Fail" rules.
5
The total loss-absorbing capacity (gone concern) requirement of 8.9% was reduced by 1.246%, or CHF 3,384 million, reflecting rebates in accordance with article 133 of the CAO.
6
Includes CHF 4,259 million of capital instruments (additional tier 1 instruments subject to phase-out, tier 2 instruments subject to phase-out, tier 2 amortization component and certain deductions) which, under the phase-in rules, continue to count as gone concern capital.
11
Swiss leverage requirements and metrics
   Phase-in Look-through

end of 1Q18
CHF million		 in %
of LRD
CHF million		 in %
of LRD
Leverage exposure                           
Leverage ratio denominator 932,071 – 932,071 –
Unweighted capital requirements (going-concern) based on Swiss leverage ratio                           
Total 37,283 4.0 46,603 5.0
   of which CET1: minimum  17,709 1.9 13,981 1.5
   of which CET1: buffer  9,321 1.0 18,641 2.0
   of which additional tier 1: minimum  10,253 1.1 13,981 1.5
Swiss eligible capital (going-concern)                           
Swiss CET1 capital and additional tier 1 capital 1 51,116 5.5 47,101 5.1
   of which CET1 capital 2 34,907 3.7 34,907 3.7
   of which additional tier 1 high-trigger capital instruments  7,530 0.8 7,530 0.8
   of which additional tier 1 low-trigger capital instruments 3 4,664 0.5 4,664 0.5
   of which tier 2 low-trigger capital instruments 4 4,015 0.4 0 0.0
Unweighted requirements for additional total loss-absorbing capacity (gone-concern) based on Swiss leverage ratio                           
Total 24,047 5 2.58 5 37,981 4.07
Eligible additional total loss-absorbing capacity (gone-concern)                           
Total 36,218 6 3.9 35,974 3.9
   of which bail-in instruments  31,959 3.4 31,959 3.4
Rounding differences may occur.
1
Excludes tier 1 capital which is used to fulfill gone-concern requirements.
2
Excludes CET1 capital which is used to fulfill gone-concern requirements.
3
If issued before July 1, 2016, such capital instruments qualify as additional tier 1 high-trigger capital instruments until their first call date according to the transitional Swiss "Too Big to Fail" rules.
4
If issued before July 1, 2016, such capital instruments qualify as additional tier 1 high-trigger capital instruments no later than December 31, 2019 according to the transitional Swiss "Too Big to Fail" rules.
5
The total loss-absorbing capacity (gone concern) requirement of 3.0% was reduced by 0.42%, or CHF 3,915 million, reflecting rebates in accordance with article 133 of the CAO.
6
Includes CHF 4,259 million of capital instruments (additional tier 1 instruments subject to phase-out, tier 2 instruments subject to phase-out, tier 2 amortization component and certain deductions) which, under the phase-in rules, continue to count as gone concern capital.
12
Leverage metrics
Beginning in 1Q15, Credit Suisse adopted the BIS leverage ratio framework, as issued by the BCBS and implemented in Switzerland by FINMA.
> Refer to “Leverage metrics” (page 131) in III – Treasury, Risk, Balance sheet and Off-balance sheet – Capital management in the Credit Suisse Annual Report 2017 and “Leverage metrics” (page 63) in II – Treasury, risk, balance sheet and off-balance sheet in the Credit Suisse 1Q18 Financial Report for further information on leverage metrics.
Reconciliation of consolidated assets to leverage exposure – Phase-in
end of 1Q18
Reconciliation of consolidated assets to leverage exposure (CHF million)   
Total consolidated assets as per published financial statements 809,052
Adjustment for investments in banking, financial, insurance or commercial entities that are consolidated for accounting purposes but outside the scope of regulatory consolidation   1 (14,060)
Adjustments for derivatives financial instruments 89,949
Adjustments for SFTs (i.e. repos and similar secured lending) (30,269)
Adjustments for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet exposures) 77,399
Total leverage exposure  932,071
1
Includes adjustments for investments in banking, financial, insurance or commercial entities that are consolidated for accounting purposes but outside the scope of regulatory consolidation and tier 1 capital deductions related to balance sheet assets.
BIS leverage ratio common disclosure template – Phase-in
end of 1Q18
Reconciliation of consolidated assets to leverage exposure (CHF million)   
On-balance sheet items (excluding derivatives and SFTs, but including collateral) 601,294
Asset amounts deducted from Basel III tier 1 capital (9,378)
Total on-balance sheet exposures  591,916
Reconciliation of consolidated assets to leverage exposure (CHF million)   
Replacement cost associated with all derivatives transactions (i.e. net of eligible cash variation margin) 28,176
Add-on amounts for PFE associated with all derivatives transactions 90,051
Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to the operative accounting framework 22,107
Deductions of receivables assets for cash variation margin provided in derivatives transactions (20,797)
Exempted CCP leg of client-cleared trade exposures (18,015)
Adjusted effective notional amount of all written credit derivatives 198,298
Adjusted effective notional offsets and add-on deductions for written credit derivatives (189,439)
Derivative Exposures  110,381
Securities financing transaction exposures (CHF million)   
Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions 173,099
Netted amounts of cash payables and cash receivables of gross SFT assets (31,682)
Counterparty credit risk exposure for SFT assets 11,365
Agent transaction exposures (407)
Securities financing transaction exposures  152,375
Other off-balance sheet exposures (CHF million)   
Off-balance sheet exposure at gross notional amount 243,904
Adjustments for conversion to credit equivalent amounts (166,505)
Other off-balance sheet exposures  77,399
Tier 1 capital (CHF million)   
Tier 1 capital  49,973
Leverage exposure (CHF million)   
Total leverage exposure  932,071
Leverage ratio (%)   
Basel III leverage ratio  5.4
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Liquidity coverage ratio
Our calculation methodology for the liquidity coverage ratio (LCR) is prescribed by FINMA. For disclosure purposes our LCR is calculated using a three-month average which, beginning in 1Q17, is measured using daily calculations during the quarter rather than the month-end metrics used before. This change in the LCR averaging methodology resulted from updated FINMA requirements that became effective January 1, 2017.
> Refer to “Liquidity metrics” (pages 112 to 113) in III – Treasury, Risk, Balance sheet and Off-balance sheet – Liquidity and funding management in the Credit Suisse Annual Report 2017 and “Liquidity metrics” (pages 51 to 52) in II – Treasury, risk, balance sheet and off-balance sheet in the Credit Suisse 1Q18 Financial Report for further information on the Group’s liquidity management including high quality liquid assets, liquidity pool and liquidity coverage ratio.
Liquidity coverage ratio

end of 1Q18		 Unweighted
value		 1 Weighted
value		 2
High Quality Liquid Assets (CHF million)
High quality liquid assets  – 166,306
Cash outflows (CHF million)
Retail deposits and deposits from small business customers 154,743 19,963
   of which less stable deposits  154,743 19,963
Unsecured wholesale funding 211,846 84,824
   of which operational deposits (all counterparties) and deposits in networks of cooperative banks  39,478 9,870
   of which non-operational deposits (all counterparties)  100,144 59,129
   of which unsecured debt  14,767 14,767
Secured wholesale funding – 59,148
Additional requirements 165,982 39,285
   of which outflows related to derivative exposures and other collateral requirements  64,850 18,485
   of which outflows related to loss of funding on debt products  2,099 2,099
   of which credit and liquidity facilities  99,033 18,701
Other contractual funding obligations 57,896 57,896
Other contingent funding obligations 238,022 6,055
Total cash outflows  – 267,171
Cash inflows (CHF million)
Secured lending 135,247 92,522
Inflows from fully performing exposures 67,419 32,997
Other cash inflows 61,832 61,832
Total cash inflows  264,498 187,351
Liquidity cover ratio
High quality liquid assets (CHF million) – 166,306
Net cash outflows (CHF million) – 79,820
Liquidity coverage ratio (%)  – 208
Calculated using a three-month average, which is calculated on a daily basis.
1
Calculated as outstanding balances maturing or callable within 30 days.
2
Calculated after the application of haircuts for high quality liquid assets or inflow and outflow rates.
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Minimum disclosures for large banks
The following table shows the Group’s minimum disclosure requirements for large banks prepared in accordance with Swiss CAO for non-systemically relevant financial institutions.
Key metrics for non-systemically relevant financial institutions
end of 1Q18 Phase-in
CHF million, except where indicated         
Minimum required capital (8% of risk-weighted assets) 21,727
Swiss total eligible capital 54,656
   of which Swiss CET1 capital  34,907
   of which Swiss tier 1 capital  49,860
Swiss risk-weighted assets 271,584
Swiss CET1 ratio (%) 12.9
Swiss tier 1 ratio (%) 18.4
Swiss total capital ratio (%) 20.1
Countercyclical buffers (%) 0.204
Swiss CET1 ratio requirement (%) 1 8.404
Swiss tier 1 ratio requirement (%) 1 10.404
Swiss total capital ratio requirement (%) 1 13.004
Swiss leverage ratio based on tier 1 capital (%) 5.3
Leverage exposure 932,071
Liquidity coverage ratio (%) 2 208
Numerator: total high quality liquid assets 166,306
Denominator: net cash outflows 79,820
Reflects the view as if the Group was not a Swiss SIFI. Refer to "Swiss capital requirements and metrics" and "Swiss leverage requirements and metrics" tables for the Swiss SIFI view.
1
The capital requirements are in accordance with Appendix 8 of the CAO, plus the countercyclical buffer.
2
Calculated using a three-month average, which is calculated on a daily basis.
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List of abbreviations
A      
AMA Advanced Measurement Approach
B      
BCBS Basel Committee on Banking Supervision
BFI Banking, financial and insurance
BIS Bank for International Settlements
C      
CAO Capital Adequacy Ordinance
CCP Central counterparties
CCR Counterparty credit risk
CET1 Common equity tier 1
F      
FINMA Swiss Financial Market Supervisory Authority FINMA
G      
G-SIB Global systemically important banks
I      
IAA Internal Assessment Approach
IMA Internal Models Approach
IMM Internal Models Method
IPRE Income producing real estate
IRB Internal Ratings-Based Approach
IRC Incremental Risk Charge
L      
LRD Leverage ratio denominator
P      
PFE Potential future exposure
R      
RBA Ratings-Based Approach
RNIV Risks not in value-at-risk
RWA Risk-weighted assets
S      
SA Standardized Approach
SA-CCR Standardized Approach - counterparty credit risk
SFT Securities Financing Transactions
SIFI Systemically Important Financial Institution
U      
US GAAP Accounting principles generally accepted in the US
V      
VaR Value-at-Risk
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Cautionary statement regarding forward-looking information
This document contains statements that constitute forward-looking statements. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to the following:
– our plans, objectives, ambitions, targets 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.
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, ambitions, targets, expectations, estimates and intentions expressed in such forward-looking statements. These factors include:
– the ability to maintain sufficient liquidity and access capital markets;
– market volatility and interest rate fluctuations and developments affecting interest rate levels;
– 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 the risk of continued slow economic recovery or downturn in the US or other developed countries or in emerging markets in 2018 and beyond;
– the direct and indirect impacts of deterioration or slow recovery in residential and commercial real estate markets;
– adverse rating actions by credit rating agencies in respect of us, sovereign issuers, structured credit products or other credit-related exposures;
– the ability to achieve our strategic goals, including those related to cost efficiency, income/(loss) before taxes, capital ratios and return on regulatory capital, leverage exposure threshold, risk-weighted assets threshold, return on tangible equity and other targets, objectives and ambitions;
– the ability of counterparties to meet their obligations to us;
– the effects of, and changes in, fiscal, monetary, exchange rate, trade and tax policies, as well as currency fluctuations;
– political and social developments, including war, civil unrest or terrorist activity;
– the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations;
– operational factors such as systems failure, human error, or the failure to implement procedures properly;
– the risk of cyber attacks on our business or operations;
– actions taken by regulators with respect to our business and practices and possible resulting changes to our business organization, practices and policies in countries in which we conduct our operations;
– the effects of changes in laws, regulations or accounting or tax standards, policies or practices in countries in which we conduct our operations;
– the potential effects of proposed changes in our legal entity structure;
– competition or changes in our competitive position in geographic and business areas in which we conduct our operations;
– the ability to retain and recruit qualified personnel;
– the ability to maintain our reputation and promote our brand;
– the ability to increase market share and control expenses;
– technological changes;
– the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users;
– acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets;
– the adverse resolution of litigation, regulatory proceedings and other contingencies; and
– other unforeseen or unexpected events and our success at managing these and 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, including the information set forth in “Risk factors” in I – Information on the company in our Annual Report 2017.
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