Double-click the slide to enlarge At its recent annual results presentation 2010, Credit Suisse has presented the slide above, which describes its business mix in investment banking and its specific positioning.
The slide show was intended to show that the bulk of business is a business with customers and that what might be some sort of proprietary trading accounts for only 9% of total revenues. We take with a pinch of salt because we know that outside activities that are clearly prop trading, what the Americans call "bright line" prop trading, there is a gray area where borders are blurred. But There is no doubt that Credit Suisse has mastered and confined its proprietary trading, which allowed him to cross elsewhere without too much difficulty and crisis to be listed in the case of "winners".
As for his business mix, since it is specific investment banking (corporate finance) represents 25% of revenues (cons a little less than 20% industry average), the activity shares 33% (cons a bit over 20% in industry) and Part FICC 33% (whereas it is about 60% in industry). In other words, Credit Suisse is overweight in Corporate Finance and stocks and underweight in FICC, what a rather favorable position in terms of profitability.
be added that Credit Suisse is also one of most investment banks active in emerging markets, the new Eldorado. Which is all well and good but does not prevent the bank to lower targets ROE, as it is mentioned in a previous post, just to adapt to present times.
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