Credit Suisse Group AG Annual Shareholders Meeting On

THOMSON REUTERS STREETEVENTS EDITED TRANSCRIPT CSGN.VX - Credit Suisse Group AG Annual Shareholders Meeting

EVENT DATE/TIME: APRIL 26, 2019 / 8:30AM GMT

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CORPORATE PARTICIPANTS Cheick Tidjane Thiam Credit Suisse Group AG - CEO & Member of the Executive Board David R. Mathers Credit Suisse Group AG - CFO & Member of the Executive Board Joan E. Belzer Credit Suisse Group AG - Secretary Lara J. Warner Credit Suisse Group AG - Group Chief Risk Officer & Member of the Executive Board Romeo Cerutti Credit Suisse Group AG - General Counsel & Member of the Executive Board Severin Schwan Credit Suisse Group AG - Vice Chair & Lead Independent Director Urs Rohner Credit Suisse Group AG - Chairman of the Board

CONFERENCE CALL PARTICIPANTS Alexander Gossauer Ernst W. Schmid Jakob Trümpi Rolf Lüthi Urs Troxler Vincent Kaufmann

PRESENTATION Urs Rohner - Credit Suisse Group AG - Chairman of the Board Ladies and gentlemen, shareholders. On behalf of the Board of the Directors and the Executive Board, it's my pleasure to welcome you to today's AGM of Credit Suisse Group AG. Thank you for taking your time to attend this important event.

With this, you testify that you are interested in our company. A special welcome goes to our Honorary Chairman, Rainer E. Gut, as well as the members of the Board of Directors of Credit Suisse Group who are all present today. Furthermore, it is my pleasure to welcome the candidates that we propose as new members of the Board, Christian Gellerstad and Shan Li.

On the podium, seen from the hall, to my left, we have Tidjane Thiam, Chief Executive Officer; David Mathers, Chief Financial Officer. Seen from the hall on the right-hand side, from outside in, we have Notary Public, Alexander Gossauer, from the notary of Zurich-Altstadt. Mr. Gossauer will authenticate the resolutions on the amendments of our articles of association under items 4 and 5. Lara Warner, our Chief Risk Officer; Romeo Cerutti, General Counsel; Joan Belzer, the Secretary of the Board. It's her birthday today but she is going to fulfill her function here anyway. Happy birthday.

Of course, the other members of the Executive Board are present and these are the heads of our front divisions. Thomas Gottstein, CEO of Swiss Universal Bank; Iqbal Khan, CEO, International Wealth Management; Helman Sitohang, CEO, Asia Pacific; Brian Chin, CEO, Global Markets; and Jim Amine, CEO, Investment Banking and Capital Markets.

And then the heads of the central functions: Lydie Hudson, Chief Compliance Officer; Pierre-Olivier Bouée, Chief Operating Officer; and Antoinette Poschung, Global Head of Human Resources, Head of Personnel as we call it in German. Our auditors, KPMG Zürich, are represented by Anthony Anzevino, Nicholas Edmonds and Mirko Liberto.

With this AGM, Mr. Philipp Rickert will take over the function as global lead partner. Mr. Anzevino, thank you very much for having fulfilled this mandate since 2012. Then I'd like to welcome our independent proxy. You know him, that is Andreas Keller, attorney.

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Before turning to the agenda there are number of formal matters we have to address. Based on article 11, paragraph 1 of our Articles of Association, I should chair this meeting as the Chairman of the Board. Joan Belzer, the Secretary of the Board, has been appointed according to article 11, paragraph 3 to keep the minutes for this year's AGM.

Today's AGM was called in due order and in a timely fashion in the Swiss public commercial gazette on 25th of March 2019. No proposals have come in from shareholders to put an item on the agenda according to article 699, paragraph 3 of the Code of Obligations and article 7, paragraphs 4 and 6 of our Articles of Association. The annual report with the financial statements and the Compensation Report and the auditor's report have been available for inspection since the 25th of March 2019 at the company's head office. And you were able to send or it by mail or electronically. The annual report 2018 has also been uploaded to our website.

I already welcomed our auditors, KPMG AG, as well as the independent proxy, Andreas Keller. Both of them are present here.

Shareholders were able to send their proxies and instructions electronically via the portal GV manager online. In this context, I'd like to address the discussion that has been taking place about the instructions to independent proxies.

I can assure you that our practice so far has been in full compliance with legislation and still is. However, we've taken the concerns seriously of some shareholders and now outsourced this activity to an external provider as this has been requested by many.

Based on article 13, paragraph 3 of our Articles of Association, I order that we vote electronically and we will not vote electronically about the election of the tellers. All shareholders were given a televoter, a voting device, when they entered the hall to cast their votes for resolutions and elections. We are going to inform you about the way that televoter works prior to the first vote. It's relatively simple and straightforward.

Shareholders that wish to leave the hall temporarily or for good are asked to please take along the televoter and the voting papers and to show them when they leave the hall or hand them back if they leave for good. Now the election on tellers, according to article 11, paragraph 2 of our Articles of Association, we are going to work with a-tried-and-tested team that you're all familiar with. The head teller will be [Arnold Huber] from Oberglatt. Then further tellers, Regula Hefti, [Wiedikon Amt seit; Anne Elisabeth Schlumberger, Zürich; and Valentin Bühler], also from Zürich. According to article 11, paragraph 2 of our Articles of Association, the tellers will be elected by show of hands and I suggest that we do that in one single go. If you wish to elect the tellers proposed, please show by raising your hand. Any votes against?

(Voting)

Any abstentions? Let's note that the tellers proposed have been elected as electors -- as tellers. The tellers are placed in the central aisle and they have a badge that says teller, (foreign language). Could I ask tellers to briefly stand so that shareholders know where they are? Thank you.

The tellers are supported this year as well by assistants. They are all high school graduates and trainees at Credit Suisse. And they have a -- wearing a blue Credit Suisse T-shirt. I'd like to thank the tellers and the assistant tellers for their valuable support.

We will announce the attendance and the number of shares represented prior to the first vote. Thus, I note that today's AGM has been called according to the Articles of Association and the legislation and its curate.

Before moving to the agenda, I have a number of additional statements for our shareholders that I would like to share with you. According to article 13, paragraph 1 of the Articles of Association, the AGM shall take resolutions with the absolute majority of shares, votes represented for the reduction and extension of authorized capital and the amendment of the Articles of Association. According to item 4, a qualified majority of 2/3 will be required and the absolute majority of the par values represented here.

All shareholders that do not want to approve a proposal and wants this to be minuted, they can contact the speakers' desk or go to one of the 2 televoter help desk to get a form and they can fill it in and sign it and would you please then hand it back to one of the tellers.

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We also have a speakers' list this year. Could ask all shareholders that wish to speak today to sign up until 11:00 a.m. at the latest? Please state your name, your first name, your place of residence and the topic you wish to speak about. Could I ask speakers also to be seated in at the reserved rows here near the speaker' desk? I will call the speakers individually concerning to speak on their items. And I reserve the right of only reacting or responding to questions once a number of presentations or statements have been made concerning one item or topic.

Proposals and statements can be made if they are in line with the legislation and our Articles of Association. Could I ask speakers also to be brief and this in the interest of time and only to speak on the item concerned and the speaking time is limited to 5 minutes and only speak on one statement per item.

Our interpreters will again provide high-quality simultaneous interpreting in German, French and English. Headsets will be handed out at the back of the hall. If you need help, please get in touch with the trainees. German translation is on channel 1.

Then I'd like to mention that the AGM will be video recorded and webcast live on the Internet, which we've done for many years now. As always, we would cordially invite you to the reception in the lobby of the Hallenstadion. After the positive [echo] after the past 2 years, our Bankers' Big Band would be happy to entertain you during reception in the lobby.

This AGM will also be CO2-neutral this year. In other words, the certificates acquired during this AGM or for this AGM will cover the whole energy consumption for the preparation and the organization of this AGM at the Hallenstadion. Smoking is only permitted in the smoking zones in the reception area. Other than that, smoking is prohibited in the Hallenstadion. Then I'd like to thank the organizing committee of the AGM and all other persons involved in the preparation of this event.

Shareholders, ladies and gentlemen, before turning to item 1, our CEO, Tidjane, and myself are going to address the development of our business in the past financial year 2018. We will look back in history. This time, we focused on the completion of the new strategy which was announced in 2015.

At the end of our presentations, ladies and gentlemen, Chairman, you will be invited to address statements concerning item 1. Item 1 and item 7 are about compensation. Therefore, I would like to ask you to expedite the procedure. So if you wish to speak on compensation as well under item 7 to also speak when we discuss our item 1.

Esteemed shareholders, for 2018, Credit Suisse has reported pretax income of CHF 3.4 billion or CHF 4.2 billion on an adjusted basis and net income attributable to shareholders of CHF 2 billion. What precisely lies behind this result? In October 2015, we unveiled our plans for the strategic reorientation of Credit Suisse. Back then, we showed you the measures that we would be taking with our new management team to position ourselves as a leading wealth manager with strong investment banking capabilities and a strong presence in the Swiss domestic market. The restructuring was designed to make Credit Suisse more resilient in the face of difficult conditions. It was our objectives to reduce risks, cut costs substantially and strengthen the capital base.

On the operating side, we were determined to deliver profitable, compliant and sustainable revenue growth in the areas that offer wealth management services and to expand our relatively stable income streams. And we wanted to rightsize our more market-dependent activities and consistently drive forward the process of resolving our largest legacy positions.

The goal we set ourselves back then was to realize our strategy in 3 years in order to lay the foundations for sustainable future growth and the development of our business, which was viewed as very ambitious at the time. So where do we stand today? Restructuring was completed in 2018. A symbolic milestone was the repayment in October 2018 of the last capital instruments issued during the financial crisis under closure of our Strategic Resolution Unit, our bad bank.

While the market environment was favorable in the first half of 2018 and characterized by strong client activity, more challenging market conditions in the second half prompted clients to scale back their activities significantly. Among other things, this was attributable to interest rate developments in the U.S., global trade tensions and geopolitical uncertainty.

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Despite these challenges, we were profitable in each and every quarter of last year, including the fourth one, which was an extremely difficult quarter. Indeed, we managed to record the highest adjusted pretax income figure for the fourth quarter since 2003 as well as the ninth consecutive quarter of year-on-year profit growth on an adjusted basis.

At the CHF 3.4 billion mentioned before for 2018, pretax income was up 88% year-on-year, while net income attributable to shareholders, as I stated earlier, amounted to CHF 2 billion. We were able to record profitable and sustainable growth in many of our business areas. This was particularly the case in the areas of our businesses that focus on Wealth Management in Swiss Universal Bank, International Wealth Management and Asia Pacific.

In terms of Wealth Management, we recorded net asset inflows in every quarter. And in 2018, as a whole, recorded net new assets of CHF 34.4 billion from our clients. Our Swiss Universal Bank, through which we service our Swiss domestic market, managed to increase profitability further in 2018, reporting an adjusted profit before taxes of CHF 2.2 billion. This is an impressive result and one that underscores the significance of our whole market.

The International Wealth Management division was also highly impressive, which outperformed its closest competitors in all its markets and exceeded its target of adjusted income before taxes of CHF 1.8 billion. Given the market dislocations at the end of 2018, we can be satisfied with the results of our Asia Pacific division where we achieved adjusted net income before taxes of CHF 804 million.

Specifically, our performance in this key region testifies to the advantages of our integrated business model and providing private banking, investment banking and financing services to clients. We do this in an integrated approach.

We occupy a leading position in Wealth Management in Asia, where we rank as one of the key players in terms of assets under management. In this context, I am particularly pleased to be able to report to you today that we intend and have already concluded an agreement with our partner to increase the stake in our joint venture with Founder Securities Co. Ltd. in China from around 33% to 51%, and thereby, become the majority shareholder, which is now possible in China.

We immediately grasped the opportunity to implement it. Completion of this transaction remains subject to approval from the corresponding supervisory authorities. It's a standard procedure, but we're confident we can complete it this year.

For us, this represents an important step in expansion of our business in Asia, particularly in China, and one that should allow us to consistently implement our adopted strategy in a market that is so important to us.

The significance of the Chinese market and the growth is also clear from our existing joint venture with ICBC, the largest Chinese bank, ICBC Credit Suisse Asset Management Co. Ltd. in the Asset Management area, which had assets under management of some CHF 194 billion at the end of 2018, making it one of the largest players in China already.

We have also made tangible progress in our Investment Banking and Capital Markets and Global Markets divisions, which have exhibited rigorous resource and risk discipline in a challenging market environment. In 2018, we recorded adjusted pretax income of CHF 429 million in the Investment Banking and Capital Markets division. This was above all driven by positive development of the advisory business, particularly in M&A, although this must be set against a decline in financing activity compared to the industry average. The Global Markets division was profitable in 2018, reporting adjusted pretax income of CHF 406 million despite operating in a challenging environment characterized by high volatility and widening credit spreads, in particular, in Q4.

Our annual financial statements for 2018 demonstrate the resilience of our business model. Our bank is now significantly better placed to take advantage of a range of macroeconomic and technological developments and to respond to these developments in a more agile way.

We have also largely met our targets and have proven that our strategy can deliver the desired results. But a prerequisite in this respect, and the most important aspect of all, is for our strategy to be aligned with the needs of our clients. And by [retaining] their confidence in us throughout the entire phase of restructuring, our clients have shown that we have achieved just that. There was an enormous inflow of client assets during

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Despite the difficult market conditions, in particular, January, was probably the worst month of January in 15 years. We generated net income attributable to shareholders of CHF 749 million. With reported pretax income of CHF 1.06 billion in the first quarter, the 10th consecutive quarter of year-on-year profit growth, we are proving that our business mix also works in a difficult environment. And that's after all the acid test for our model and our bank.

In addition, our strong capital base, with a CET1 ratio of 12.6% and Tier 1 leverage ratio of 5.2%, also testifies to stable development. Our CEO, Tidjane Thiam, will provide you with further details on the quarterly results in a minute.

Our performance over the past year and in the first quarter of 2019 reflects the significant progress we have made as well as the confidence clients have in our bank, which is, of course, highly important for us as we are working and operating in the client business. However, we can be anything but satisfied with the development of our share price. In particular, and in keeping with the entire European banking sector, it has suffered significant losses, a development that is most unwelcome, particularly in the last quarter.

That said, it needs to be borne in mind that our share price is not just influenced by our performance. It was also driven by a number of other factors including some that have weighed significantly on the markets generally, and the European banking sector in particular, for much of the past year.

At the heart of this problem lies the persistently low interest rate environment in Europe, which also makes European banking stocks less attractive than their U.S. counterparts. In 2009 (sic) [2019] to date, our share price, however, has performed very well compared to the peer group with positive price performance of 27%. In the period from January 1 to April 25, 2019, we have outperformed our European peers and some of them very much so.

As previously announced, we intend to distribute at least 50% of net income to our shareholders in 2019 to 2020 and to increase the ordinary dividend by at least 5% each year. In keeping with this objective, in 2019, we started the share buyback program approved last year, which comprises a total volume of up to CHF 1.5 billion and the proposing cash distribution of CHF 0.2625 per registered share for the 2018 financial year, payable out of capital contribution reserves.

Over the last years -- 3 years, we have not only sharply reduced our cost base and increased our operating flexibility, but we've also invested in growth and productivity gains. And this process of investment is something we expect to pursue consistently and expand in the future.

For example, Credit Suisse is investing heavily in digitalization initiatives and has entered into a large number of partnerships with leading service providers in this area. Among other things, this has involved interdisciplinary teams developing cloud-based solutions and working intensely on the deployment of future-oriented technologies. In particular, we are focusing on automation, robotics and machine learning with a view to integrating these into our existing systems.

But while digitalization is a crucial success factor, we are also very much aware of the risks associated. Specifically, it is imperative that we monitor cyber risks effectively and guarantee protection of client data. I would go as far as to say that cyber risk probably is the most significant and most difficult one to handle for the entire financial industry and you need to manage it very carefully.

In 2018, we lowered our adjusted operating cost base to CHF 16.5 billion. This is actually CHF 0.5 billion lower than our target, our original target. As of the end of 2018, we have achieved net cost savings of CHF 4.6 billion since the end of 2015, significantly exceeding our ambitious target. And I can tell you this, again, is not to be taken for granted.

It's extremely difficult. You've got to go through the entire bank to adjust processes. Otherwise, it's not possible. Just take a look at some of our European competitors for comparison.

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At the same time, we have substantially strengthened the bank's capital base, surpassing our targets for both the CET1 ratio and Tier 1 leverage ratio. Our CET1 ratio amounted to 12.6% at the end of 2018, while the Tier 1 leverage ratio came in at 5.2%. Both figures already are exceeding the Swiss requirements that will apply from 2020 onward.

Given the highly challenging macroeconomic environment in the last years, progress -- the progress we've made in this area testifies to the balance and resilient nature of our business model. A significant proportion of these sustainable cost savings was achieved through strategic decisions in regard -- in respect of our business portfolio, which involved exiting or downsizing certain business areas. In other words, adopting a targeted and strategic approach rather than simply wielding the ax blindly. At the same time, we have been investing heavily, among other things, in the areas of compliance and risk management as well as in our equities business.

In a phase of restructuring, you mustn't forget about talent management, which is a key focus of our activities. After all, it's our people, our staff that represent the bank. This has enabled us to consolidate our pool of qualified personnel in the corresponding functions throughout the bank in order to support the restructuring strategy, and bearing in mind the need for area-specific talent, we have continued to recruit a large number of both experienced staff and young talent.

You were probably surprised by the figures. In 2018 alone, we recruited some 9,250 new staff, of which 3,720 were for positions filled internally. We incorporated 2,214 graduates from around the world into our career starter program, of which, 1,326 took the form of internships. And we offered apprenticeship positions to around 200 aspiring apprentices in Switzerland and probably continue to be one of the largest employers for apprentices. We also focused significantly on the further development of our in-house talent and staff.

In 2018, we held some 51,000 training events of web-based and classroom training sessions, which were attended by more than 70,000 participants. Among other things, our aim here is to further improve the quality of our services and our advisory expertise, which is important in developing markets. And of course, we need to constantly adjust the client needs. Other pillars of our internal employee strategy include equal opportunity, the promotion of women, internal mobility and bringing through the next generation of managers. A key element of our restructuring program was the improvement of our corporate culture and clear strengthening of controls in the compliance and risk areas, which we have continuously driven and expanded in the past 3 years.

This is something we have worked on tirelessly. It's also a response to the truly multifaceted changes that regulations brought to our industry, particularly since the financial crisis. We consider these changes to be fundamentally correct and are implementing them accordingly. We're also rigorously aligning ourselves as a company with the relevant guidelines and regulations of the various jurisdictions in which we operate.

With these changes, we are making Credit Suisse stronger and its business more resilient. For example, in the course of our restructuring program, we have channeled substantial investment into our compliance and risk control systems. And in particular, we've increased headcount in compliance by 40% in the last 3 years. In addition, we've introduced state-of-the-art technologies and new compliance tools that are, for the most part, unique in our industry, and some of them we've developed ourselves.

In our efforts to combat financial crime and anchor the compliance culture in our company even more strongly, we took a further measure at the end of last year by establishing a so-called conduct and financial crime control committee at the level of the Board of Directors. This new committee improves compliance control at the very highest level on the Board, together with other measures we have implemented as well as ongoing initiatives of management in this area. This highlights the resolve of our Board of Directors and senior management to tackle the risk of financial crime and adhere to the highest standards of conduct in recognizing this problem.

Furthermore, in February this year, we made a number of changes to our group Executive Board, thus underscoring the strength of our management structure. First of all, Ms. Lara Warner was appointed our new Chief Risk Officer. She was Chief Compliance and Regulatory Affairs Officer since 2015, and she successfully drove the development of industry-leading compliance competencies within the group.

Secondly, we have appointed Ms. Lydie Hudson as our new Chief Compliance Officer and member of the Group Executive Board. Lydie Hudson has been with the bank for 11 years, and in her capacity as Chief Operating Officer of the Global Markets division, has made key contributions to successful transformation of this division in the last 3 years.

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And furthermore, Mrs. Antoinette Poschung has been appointed Global Head of Human Resources and a member of the group Executive Board. Since joining the group in 2008, following a successful career with Winterthur, Antoinette Poschung has headed up a number of HR areas and plays a decisive role in talent development at Credit Suisse.

Ladies and gentlemen, as we work through the various items on the agenda in a minute, you will have the opportunity to vote not just on the distribution proposal mentioned previously but also on the Compensation Report, our compensation proposals and our proposals for elections to the Board of Directors. Allow me at this point to say a few words on the subject of compensation.

As is made clear in detailing our 2018 Compensation Report, the compensation of the Executive Board is based not just on evaluation of last year's performance, but also and importantly, on the degree to which the restructuring plan is being successfully implemented from 2016 onward. Successful achievement of targets, some of which I alluded to earlier, is set out in detail in the commentary and tables of the Compensation Report. You will find transparency regarding total compensation of the Board of Directors -- of the Executive Board, its breakdown and the criteria for determining the individual compensation elements. We consider this important.

In particular, the Compensation Report makes it clear that the compensation plan for the Executive Board encompasses variable compensation elements in the form of both short-term and long-term incentive awards. These are subject to a maximum potential cap ceiling, which is paid out only if all the disclosed performance criteria really and effectively are achieved 100% in the future, which is highly difficult -- a highly difficult thing to do.

For our share-based long-term incentive awards, we exclusively apply measurement criteria that are aligned with the long-term -- or longer-term objectives of shareholders. This system is designed to ensure that the value development of these share-based claims actually corresponds to the experience of shareholders over the timeframe in question. In other words, an unsatisfactory share price development in the eyes of shareholders will also have repercussions for the compensation of the Executive Board. This could be seen in particular in the long-term incentive award claims for 2016 at the end of the performance period of 3 years, only 41% of the originally allocated number of shares were actually earned. And if you include the decline in the share price, it was substantially less. The resulting compensation was therefore significantly lower than the value of the opportunity published originally.

Another effect of the consistent alignment with our future strategic plans is shown by the nominations for the first election of 2 new nonexecutive members of the Board of Directors. We're convinced that both these candidates bring the necessary experience to contribute to further successful development of our strategy.

The candidates are Mr. Christian Gellerstad, former Chief Executive Officer of Pictet Wealth Management, a wealth management expert with more than 20 years' experience and outstanding international expertise in the management of the private banking business. And Mr. Shan Li, Chief Executive Officer of Silk Road Finance Corporation, a financial services industry expert with a particular focus on the key Chinese market. We're already looking forward to benefiting from the specialist knowledge and experience of our 2 new colleagues.

These individuals are said to replace Messrs. Andreas Koopmann and Alexandre Zeller. Andreas Koopmann will not be standing for reelection after 10 years on the Board of Directors and more than 20 years in a variety of Board and advisory functions for the group. However, he will continue to be available to us with his wealth of experience in Swiss industry as a new member of the Board of Directors of Credit Suisse (Schweiz) AG. Alexandre Zeller stepped down from our Board of Directors and from his position as Chairman of the Board of Directors of Credit Suisse (Schweiz) AG back in February of this year after being appointed managing partner of Lombard Odier, which is an honorable thing he was appointed for. We would have liked to have him with us longer but both colleagues deserve our deep gratitude for their contributions over their respective terms of office, and in particular, during the restructuring of our group.

It may be coincidence or maybe not, but progress of Credit Suisse is also reflected in the 200th anniversary of the birth of our founder, Alfred Escher. His entrepreneurial spirit and relentless drive to bring about positive change for both business and society, some cases contrary to the Zeitgeist, continue to echo even today. At Credit Suisse, we remain inspired by his farsighted vision and untiring dedication to progress and prosperity. Moreover, from his vision of entrepreneurship, we have learned how important it is to identify future trends at an early stage and harness them with innovative solutions for the benefit of our clients.

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I have no hesitation in saying that, at Credit Suisse, we live and breathe this principle in the servicing of our clients, and it's always been like this. Another driving force of our daily work is the conviction that acting responsibly is an important prerequisite for our bank's long-term success.

The basis for this is set out in our Code of Conduct and our Conduct and Ethics Standards. Our understanding of corporate responsibility encompasses the totality of our business activity as well as the dialogue with all our stakeholders with whom we cultivate partly highly intense exchange of views.

In addition to the sense of responsibility that we feel both as a bank and as an employer, we also see ourselves as part of the wider economy and society. This also includes our support for humanitarian and charitable organization and projects as well as our determination to align our business activity with long-term environmental sustainability.

Moreover, with our all-encompassing approach, we support the transition to a low carbon and climate-resilient economy as well as the protection of biodiversity, even if we are seeing that this transition is going to take some time. And of course, the NGOs do not always praise us for our activities but we are conscious of our responsibility to the environment. Accordingly, we review sustainability aspects in the context of risk management and advocate the efficient use of resources.

This also includes operating in a greenhouse gas-neutral way at all our locations worldwide since 2010.

Ladies and gentlemen, over the course of my remarks, I hope I've demonstrated to you that Credit Suisse is now essentially a different, and I would say, a stronger bank following the successful completion of its restructuring. We have largely achieved our targets. Credit Suisse now rests on solid footing and we are well positioned and ready to create sustainable value for shareholders through the further implementation of our strategy, in both today's and tomorrow's environment.

I would very much like to take this opportunity to thank our global workforce of over 46,000 employees for their great dedication and daily commitment in this sometimes uncozy era of change and transformation. Without their willingness to go the extra mile every day, we would not have been able to achieve these targets.

And finally, I would like to thank all our clients, and of course, you, our shareholders, for your enduring trust and support in recent years. And of course, hopefully, in the future, too.

Thank you very much for your attention. I will now hand over to our CEO, Tidjane Thiam.

Cheick Tidjane Thiam - Credit Suisse Group AG - CEO & Member of the Executive Board (foreign language) Thank you very much, Mr. Chairman. Dear shareholders, ladies and gentlemen, it's my great pressure to welcome you in my turn to the Annual General Meeting here in Zurich. This is the first opportunity that I've had to welcome you with a profit of more than CHF 4 billion for the year 2018. It's also the first opportunity that I've had to talk to you since we completed our 3-year restructuring operation, which we did on the 31st of December 2018. That is officially the date on which, as promised, we finally wound up our Strategic Resolution Unit, the SRU.

So I'm taking this opportunity to give you an update on the progress made by our bank and also to take the opportunity to listen to your views and opinions, which I'm sure will be diverse.

I hope that my presentation this morning will demonstrate to you that Credit Suisse has changed a lot of things over the last 3 years. I would like to take a few moments of your time to talk to you a little about where we started and what we've done over the past 3 years.

Forgive me, I will now switch to English for the main part of my presentation. I'd like to start from our position in 2015. This is the end of the restructuring program and I felt that it was an appropriate time to take a look back to when we started until where we are today. The bank, Credit Suisse, had some well-known and clear strengths. We had and we still have a strong position in our home market here in Switzerland. We have one

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Now I have to say that alongside these strengths, our Board had also identified that we had some significant challenges and that was needed to be urgently addressed. And it is important that we talk about those challenges in a frank and transparent manner.

So let's start with what is the most important for any business, which is growth. You can see here that over a period of 5 years, our growth was significantly weaker than the growth of our peers. This was most clear in our assets under management, which is a key measure for a wealth manager, which grew at a compound annual growth rate of 4% between 2011 and 2015 but was less than half industry average and almost 1/3 of the performance of a market leader.

Moving from growth to capital. Our capital position was significantly weaker than that of our peers with our CET1 ratio standing at 10.2% for the third quarter of 2015, and we were even more severely leverage constrained, which is another measure of capital strength. Our capital generation was adversely impacted by a relatively high cost of funding, which made us less competitive in the market. And we estimate that extra cost of funding to a handicap of several billions over the period.

If we do cut our costs over a number of years, on the next slide, our cost base was, as you can see here, year-after-year was quite high and inflexible, with group operating expenses stubbornly at CHF 22 billion per annum, excluding goodwill. We had a lack of something we talk a lot about now, operating leverage, meaning that profitability was under pressure at a time when many other banks had been successful at reducing their costs. We estimate over that period that U.S. banks had reduced their costs by 12%.

Our capital allocation was geared towards the more volatile trading businesses, as regulators after the 2008-2009 crisis, made those activities more and more costly in terms of capital. There was also an increase in our market risk -- or value at risk in the investment bank, which led to its own challenges. So in addition to these challenges, we also had some legacy issues that we had to deal with and that will present to you here.

We had some large RMBS-related issues. These are instruments that had been issued in America and this needed to be dealt with. And we also had what we called an NSU and then -- created in 2013, and then an RSU -- SRU, sorry, created in 2015 which I mentioned earlier, which was to allow us to eliminate portfolios of noncore businesses and assets that we didn't need anymore.

We also had a challenge linked to a 2000 acquisition of DLJ.

So faced with this situation, the Board, led by our Chairman, Urs Rohner, made a clear diagnostic and reached a conclusion that a new direction was needed for Credit Suisse. There was a change of management in 2015, which led to my arrival and the Executive Board in place now. And I was recruited by Chairman Urs Rohner and by the Board with a mandate to set the company on a new course and address these issues.

So the plan that the new management team developed together with the Board to transform Credit Suisse was predicated on a number of key beliefs and convictions. One, we believed that given our history with domestic and international high-net-worth families and entrepreneurs at the heart of Credit Suisse, that this should be our future, the preservation and the growth of our clients' wealth. We needed to be once again the leading wealth manager that we had once been. A leading wealth manager with an understanding of and a belief in the importance of our home market, Switzerland. And one with an understanding of the need for a balance between emerging and mature markets.

Two, we believed that we need to reduce the size of our investment banking and markets businesses because of the pressures they placed on our capital and the volatility they introduced to our results. And we needed it to get them to work more effectively and more closely in collaboration with our Wealth Management businesses.

So it was on that basis that we set out our new priorities. First one was to deliver profitable growth and generate capital organically. Second one was to strengthen our capital position. Third one was to reduce decisively our cost base. The fourth one was to reduce, rightsize and derisk our markets activities. And finally, to resolve our legacy issues, including closing down the SRU that I mentioned earlier.

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I would just underline that when we established the SRU in early 2016, it was actually the largest division in the bank and it was bigger than our Swiss bank. So winding it down was going to be a very big undertaking.

Conducting all those tasks in parallel was what was needed to take Credit Suisse back. Taking it back to our roots of focusing on serving the world's entrepreneurs through high-quality wealth management and investment banking solutions. Taking it back to Switzerland, our attractive home market by establishing the Swiss Universal Bank, SUB, for the first time creating a single business unit focused on Switzerland, enhancing management focus and building our entrepreneurial heritage in Switzerland. And taking it to a future by expanding our core activities in parts of the world like Central and Eastern Europe, the Middle East, Latin America, Asia Pacific, Africa, where a larger and larger number of people are becoming wealthy.

So we used those priorities, growth, capital, cost, derisking and legacy to develop the strategy. But that has now changed the balance between our Wealth Management and trading activities so that our capital, our risk-weighted assets, are now skewed 2/3 in favor of Wealth Management, which enables us to grow with higher-quality, less volatile, more stable revenues. We wanted the bank, as the Chairman said earlier, to be more resilient at times of stress, and to grow in a profitable, compliant manner when conditions are more favorable. And we believe that by the end of 2018, in about 3 years, we have delivered on these priorities. So please allow me to illustrate this with a few facts.

We have talked about growth. So as far as growth is concerned, we have steered the bank back into profitability, as we told you, but this was not only achieved, as is often argued, purely for cost cutting. We have actually grown over a period and grown very strongly.

Since 2015, we have attracted over CHF 110 billion of new Wealth Management assets. Specifically, we have grown our ultra-high net worth franchise. And with positive inflows in every single quarter, our Wealth Management assets under management are at record levels, as I speak to you, at CHF 786 billion.

We have delivered adjusted revenue growth across our 3 Wealth Management-related businesses since 2015. And let me just mention each of them.

Here in Switzerland, our activities have been growing. Between the end of '15 and the end of '18, our business volume in our Swiss bank's Private Clients segment, taking in the net loans, the assets under management and the assets under custody, grew by approximately 16%.

The Swiss Universal Bank's adjusted PTI, pretax income, grew by 38% in those 3 years. And these results were achieved in a context where the Swiss economy is growing at 1.82% per annum, so there's been real growth.

In International Wealth Management, our second Wealth Management division, assets under management have grown by 22% and adjusted profits have grown by 78% between 2015 and 2018.

And in Asia Wealth Management, assets under management grew by 34%. We've just reached our highest ever at CHF 219 billion, at the end of the first quarter. And profit has grown by 180% between '15 and '18.

Our Investment Banking and Capital Markets franchise, IBCM, which used to lag the market in revenue, has now outpaced its peers significantly since 2015. So there has been a lot of growth.

When we look next at capital, we made the business model less capital consumptive, so we need to consume less capital now to run the bank. And we have a higher return on regulatory capital, and the expectation of further improvements. We have strengthened the balance sheet. Our CET1 ratio has increased from 10.2% to 12.6%. And at the end of 2018, we have reduced our risks. So we have more capital and less risk.

Moving on to costs. We made good progress on growth and capital that I just presented, whilst also conducting a significant cost-reduction program and delivering CHF 4.6 billion of net savings in 3 years.

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We have reduced our adjusted operating costs from CHF 21.2 billion in '15 to CHF 16 billion in 2018. And as I said earlier, we continued throughout the restructuring to invest in risk management and control to make your bank safer. We reduced the size of Global Markets, reducing leverage, so measure of capital in the business by 43% and the risk-weighted assets by 46% in 3 years.

The last chapter I'd like to address, to talk about what has been achieved by the Board, the ExB, the team is around legacy. So the issues inherited from the past.

When dealing with legacy, there is always the option to, as the English say, kick the can down the road and not actually resolve the issue. We, at Crédit Suisse, feel that, that is the wrong approach, and potentially a very costly approach in the long run.

So along with other European and U.S. banks, we faced a number of large and severe threats from legacy issues, principally over our residential mortgage bank securities activity in the U.S. That was a significant legacy matter from the pre-financial crisis year, so 2006, 2007, 2008.

We believe that we did the right thing. We made the choice to deal with the matter upfront. It has had clear short-term costs as we paid a fine, and had to declare a loss in 2016 in an otherwise profitable year. But we believe that this was the right approach. It removed a very large cloud from our horizon, and it allowed us to move forward with our capital raising and our turnaround plans and to generate the performance that you can see today.

We see now the advantages of an early settlement. Our capital ratios are clean. And as a result, in January, we were able to get approval from regulators to commence a share buyback program as a result.

In addition to the RMBS issue, the other major legacy issue was what some of our peers have called, a (inaudible) bad bank, the Strategic Resolution Unit, which was closed on schedule, in spite of its initial size at the end of 2018.

So I am sure that you will all agree with me, having gone over all the issues, that prevention generally is better than cure. So we have made great strides in strengthening our compliance framework and controls to avoid repetition of such problems in the future.

For example, we have created what we call now a Single Client View. I believe one of a few banks in the world able to do it, which allows us now to see in a single place and in real time all the relationships we have with a client. This now covers 99% of our Wealth Management clients. And we have moved from 12 legacy old platforms to 1 strategic platform.

And as the Chairman mentioned earlier, we have increased the headcount in compliance by 40% in 3 years. We have hired 800 people, while carrying out legacy reviews of more than 30,000 clients for financial crime and tax. In parallel, we have driven improvements in our culture, which have contributed to achieving sustainable, compliant and profitable growth you have seen since 2016.

The result of all these, 3 years on, is that we have created, we believe, a profitable, well-performing bank with a strong balance sheet. An efficient bank with low and competitive costs, up-to-date technology and a low risk model.

So in that short period, our results for 2018 which we presented back on February 14, 2 months ago, reflects that strength and that resilience of the model, it took us 3 years to put in place.

The final year of our restructuring in 2018 delivered a group adjusted pretax income of CHF 4.2 billion, double what we produced in 2015 and with more than 50% increase over 2017. Net income attributable to shareholders stood at CHF 2 billion, as we generated our first annual post-tax profit since 2014.

The thinking behind this strategy was, as I said before, not just to do well in good times, it was also to protect the bank during periods of market volatility and make it more resilient by reducing the risk. The fourth quarter provided a very good illustration of that, because we witnessed the fourth quarter of 2018, 2 months ago. We witnessed widespread volatility and lower activity levels across markets.

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Credit spreads widened significantly. There was a notable absence of activity in the primary market, in areas such as equity and debt underwriting. Under such conditions, we believe that pre-restructuring we would have likely faced severe losses. And yet, our Crédit Suisse, the new Crédit Suisse did not. In the fourth quarter, we actually reported -- delivered reported pretax profits of CHF 628 million, more than 3x above the same period in 2017.

As we said on February 14, the day we published our results, this was our own stress test. And I am pleased to tell you, dear shareholders, that we passed. The result that we published now on Wednesday, it was 2 days ago, for the first quarter earlier this year, represented really the first time we could present earnings after the end or since the end of a restructuring, and were a good test of the new Crédit Suisse.

Despite a 35-day U.S. government shutdown at the start of the period, continued concerns about the state of global trade and the drag of ongoing uncertainty surrounding Brexit, we were able to generate CHF 1.06 billion of reported profit in the first 3 months of 2019.

And net income attributable to you, our shareholders, was CHF 749 million. So after-tax, CHF 749 million, the highest quarterly profit since the third quarter of 2015.

We delivered very strong net new assets, CHF 35.8 billion in one quarter, up 43% year-on-year, and a growth rate of 10.6% of our assets. And our assets under management stood at a record CHF 786 billion.

Our Global Markets division delivered a pretax income of USD 283 million and a return on capital of 9%, reflecting some of the early benefits of a tough restructuring it's been through during 3 years. It was pleasing, but in a challenging market environment, global markets, equity sales and trading revenues were up by 4% in U.S. dollars, which we believe was one of the best performance in the industry.

And the collaboration between our division, something that's very important to us, was evident in our first quarter numbers as we disclosed that International Trading Solutions, which operates between global market, International Wealth Management and Switzerland, saw its revenues rise by 23%, as we bring institutional quality solutions and services to our ultra-high net worth client.

Equally important, the balance sheet remained resilient with a CET1 ratio of 12.6% and a Tier 1 ratio of 5.2%. And we continued to keep a ceiling on costs, even after the end of our restructuring, with expenses of CHF 4.2 billion versus CHF 4.5 billion the previous year, so going down.

So our message to you today is that our strategy of focusing on our Wealth Management franchise with strong investment banking capabilities, low risk and a strong balance sheet is working, allowing us to continue to support our clients and create growing value for our shareholders.

So let me pause here, because I'm sure that a question you ask yourself then is, if everything you're saying is true, why is your share price where it is? So please allow me to talk about this for a few minutes, because it's a fair question, and one to which I know the majority of you gathered here today will want an answer.

I'm going to show you a portion of a chart that presents the evolution of the share price of European banks, because this problem is not just a problem for Crédit Suisse, it's a problem for European banks in general.

So what you can see here is a historic look at European banks stocks. The simple truth is that during the 3 years where we conducted our restructuring, there were 2 major meltdowns of the European bank sector, not just Crédit Suisse, the European back sector.

In '16, there was a 48% drop of the share prices of the European banks. You can see that here, and actually drawing, you see that highest point historically in July '15, that's when I started. So the 48% drop in the 6 months or a year that followed my start, very major shock. And then again in 2018, on the next slide, we show you we had a further 33% fall in the share prices of the European banks.

And these were 2 of the sharpest share price drops in the banking sector in Europe in the last 10 years. They just happened during the period of our restructuring, and they have had a significant impact of course on our valuation.

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So if we move now to Crédit Suisse itself. The most obvious way to measure the value of the bank is what we call, in our jargon, the tangible book value of the bank. You can think about it as the value of the asset of a bank. Okay?

So the share price is nothing else than the value of the asset of a bank, divided by the number of shares. And both are important. So when we started in '15, Q2 '15, our tangible book value asset of the bank was CHF 34.2 billion. You can see that here in gray on the left, CHF 34.2 billion.

As we move to the right, you can see the effects of a restructuring on the value of the bank. I mentioned several times the Strategic Restructuring Resolution Unit. It cost us about CHF 7.7 billion to wind it down and eliminate all those assets. That's the book you can see here. So that will necessarily -- if you think value of the company divided by the number of shares, that will have a negative impact on the share price.

The next big block is something I've talked about also, is the decision to settle the issue in the U.S. and to be able to move forward. That's CHF 3 billion. That also has a negative impact. Then you have the restructuring charges at CHF 2 billion. That also has a negative impact.

So by the time you have conducted that cleanup, you have depleted the value of the company by a significant amount. So clearly, that number divided by the number of shares, cannot be going up. That's the first thing that happens.

The second thing that happens is that we had to raise capital. We showed you those slides. The Chairman showed them to you. I showed them to you. But our capital ratios are much better. And shareholders participated in this. We had to issue about 60% more shares. You can understand also that if you divide by 10 the value of your company by a number of shares that is 6% higher, the price per share will not be the same.

And that's what we've done. And the biggest block on this page is actually the CHF 15.6 billion to the right of profits, because we have actually worked very hard during that same period and generated a lot of profits, but have come to increase the value of the company.

So that you end up at CHF 38.8 billion, which is -- sorry, I'm also skipping the dividend. We have paid 1.7 billion of dividends to shareholders to you. And in the end, you arrive at CHF 38.8 billion. So you have a company that is worth more, which means the restructuring has been successful. The company is worth more but you have many more shares in circulation.

So effectively, that share price is lower. There is no way around it. That's the mechanics of what's happening. The cleanup and the generation, in blue, of profit which takes us where we are today.

And you can see at the bottom that the tangible book value per share has dropped by about 26%. Because this is what drives the share price in the end, the tangible book value per share.

Now what's interesting is what's going to happen next. If we can move to the next slide. If you look at the end of Q4, there's a lot of comment on the performance of Crédit Suisse and the share price in Q4. The first, the top of the slide shows you the performance during the first 9 months of 2018. And you can see that Crédit Suisse, at minus 15%, was in line with all the other banks, all the underperformance was in Q4, okay? 23% -- minus 15% -- minus 23% within the 3 months of October, November, December '18. Why? Because the market did not believe that we had derisked the company and was worried -- as I described the environment of Q4, which was very difficult -- that we were going to lose a large amount of money. That did not happen, both the Chairman and I have told you, so we made [good] profit in Q4.

So that was a turning point. Because if we move to the next slide, you will see that since then, we have absolutely outperformed the sector, and every single bank in Europe.

We are -- anyway, so moving on to the next slide, because this is a really important section. You can see that there were -- when we started in 2015, there were 4 banks restructuring in Europe. One German bank, Deutsche Bank; 2 British banks, Standard Chartered and Barclays; and us, Crédit Suisse. This is today how the market values us.

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The real measure of the value of a bank is the share price divided by the tangible book value. We have the highest ratio of those 4 restructuring banks. And this is why we're confident that the market believes what we are doing, and that the challenge for us now is to grow the tangible book value per share. It's kind of magic number I've been taking about, the tangible book value per share.

And if you look 1 year back, it was $14.83 . At the end of the first quarter '18, it was $15.47 in -- at the end first quarter '19. If I describe the simplest way, the task of management is to grow this tangible book value per share.

Because if you grow this tangible book value per share, i.e., the tangible value of each share, the share price will grow.

So that's where we are in our journey. We are confident. But as we add profitable quarters, like Q1, where we produced CHF 749 million of after-tax profit, this tangible book value per share will grow up and that gives us confidence in the future. But to be able to do that, we had to clear the problems of the past and put ourselves in a position where we can operate profitably, including in difficult markets and market conditions.

So can we go to the next slide, please? So this was all a lot of numbers, and I'm sorry for having used so many figures and numbers, but it's a complex story and I just don't how to tell it without numbers.

Now moving to what's the most important for us at Crédit Suisse, which is our people. This is a slide which gives me confidence in your future, because it shows you the answer. We do every year an internal survey, where we ask people inside Crédit Suisse if they are proud of working at Crédit Suisse.

And when we started in 2017, the answer was 79% and it is now 94%, which we believe is great score because it's the only way we can provide a good service to our employees -- sorry, to our clients. Sorry, to our clients because if our employees are not proud of Crédit Suisse, they will not represent it well and will not provide a good service to the clients.

I just want to say, before I close, a few words about corporate responsibility, something the Chairman touched on, too. Because it's a topic that is rightly viewed as important here in Switzerland and it is one that all 45,000 of us who are proud to say that we work for Crédit Suisse. We take very seriously.

It's interesting but in the last 12 months, we do a lot of internal meetings where people can call in from all over the world. The one that was the most -- or the best attended was one about impact investing and corporate social responsibility. So even within Crédit Suisse, there is a huge interest in this question.

So I hope that you were able to see on your way in a number of the ways that we, as a bank, give back to the communities in which we operate.

And if you didn't get a chance, please do spend some time after the formal proceedings of the AGM are over and talk to our colleagues outside who can explain the different types of projects we are involved in.

We have a particular focus on education in our social work in countries such as Brazil, India, Rwanda or Tanzania. I am a strong believer that education drives economic opportunity, economic empowerment and social mobility. Over the last 5 years, through our global Financial Education for Girls program, I am proud and delighted to say that some 3,620 teachers have been trained and that 1,544 schools have benefited.

I'm also a believer in financial inclusion. And our micro finance program, which existed long before me, is a beacon of the work that we do in this area.

Corporate responsibility in this regard is not just about charity and what we can do for others, it is about changing the way society thinks and investing for the long term and working for our clients on this, which is why I was happy that we started, in September 2017, an Impact Advisory and Finance department reporting directly to me, and that team is at the forefront of coordinating our impact investing services across the bank as a whole and it's an area in which I've been involved in personally all my life, but which has stepped up at Crédit Suisse a gear over the past 18 months.

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Clients, both individuals and companies, are increasingly interested in investing in trends and businesses which have a measurable social impact from which they can also generate a return. So it is part of our job to help tailor those investments and ensure that through innovations in measurement and understanding, we continue to grow this extremely important part of our business.

So I would like to highlight just one very recent example of our involvement in the codification of about $500 billion of impacting investing.

Earlier this month, in Washington, 2 weeks ago, the International Finance Corporation, part of the World Bank, has announced the launch of 9 principles designed to bring greater transparency, comparability and rigor to the market in the belief that the absence of globally accepted definitions has been holding back investor interest.

Crédit Suisse and myself have supported this initiative from the outset and we were closely involved in the development of these principles, underscoring our expertise in a market that the IFC thinks can top USD 26 trillion if it is brought further into the mainstream.

So again, corporate social responsibility is key for us and it will be for years to come.

A few words about the ExB as well as the work we do externally, I wanted to say a few words on what we're doing internally and inform you of a few recent changes we made. In February, we announced a series of changes to the Executive Board and that's a reflection of the talent we have inside Crédit Suisse and of the diverse backgrounds and experience of our leaders.

Lara Warner, who here, has been a member of the Executive Board since 2015, and was presented by the Chairman earlier. She's now our Group Chief Risk Officer, one of our most important functions in the group, clearly. And she also spent 3 years developing the Client program I mentioned earlier in compliance, which is a great success for Crédit Suisse. And I want to mention that she moved from New York to Zürich with all her family 3 years ago to take this job and lives happily in Switzerland.

Lydie Hudson, previously Chief Operating Officer of Global Markets, was recently appointed Chief Compliance Officer. And Lydie, I'm pleased to say, is also -- like I did 4 years ago now, moving to Zürich from New York to take up her role. So I'm sorry if I'm adding to the population of Zurich but it's important for us to be able to work together.

Antoinette Poschung is Swiss, and who is here. She's our new Global Head of Human Resources and has a vital role of leading 45,000 colleagues and also developing our next generation of leaders. So each of them is operating in their new roles and adding to the culture of the bank in their own ways. They happen to be women, but they were appointed simply because they are the best at what they do.

I want, at this point, to also pass my personal thanks to 2 of our colleagues who agreed to step down from the ExB, Peter Goerke and Jo Oechslin. And as a result of these changes, they will now act as senior advisers in the bank.

So I'd like to close now by saying a few words about the way forward from here. Having set out why we needed to restructure, and thank you for being patient to go through that with me, how we did it and the results, allow me to talk now about a few remaining -- of the issues we have to deal with going forward, and in a very optimistic manner because I think we're in a good place.

One, we are uniquely positioned as a Swiss bank, given that Switzerland is one of the most attractive banking markets in the world. We have the highest average wealth per capita, the highest density of affluent clients, a strong currency, a vibrant entrepreneurial economy. It's one of the best-managed economies globally, and its political neutrality is actually a benefit for our clients and for us.

Two, global wealth continues to grow. Globally, wealth has nearly doubled over the last 10 years. In spite of overflow of bad news we hear, wealth has doubled, with contributions both from mature and emerging markets. And the ultra-high net worth client segments, which we are focused on across our 3 businesses continue to grow and remain highly attractive.

Three, we are making significant inroads in our new model of leveraging our markets and investment banking businesses for the benefit of our Wealth Management clients. For our ITS business, we are able to utilize Global Markets' capabilities to meet previously untapped client demand.

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In the first quarter, ITS revenues rose by 23%, powered by a number of landmark transactions for our clients. And as a result of this success, earlier this month, we announced the creation of Asia Pacific Trading Solutions built on the same model and actually run by the same person. And ATS is intended to capitalize on the significant opportunities across the region and further build on the success of ITS and the decision that our Chairman mentioned of increasing our ownership of the Chinese business.

So as a result of all of these, we are well positioned to drive shareholder value yet further, and drive a tangible book value per share that I talked about a lot.

Our Wealth Management-focused strategy is supported by strong secular trends in global wealth, with growth above gross domestic product. And our distinctive global client franchise has a differentiated approach, which allows us to cater to our clients, their families and to entrepreneurs. With our restructuring now complete, we are beginning to realize the benefits by unlocking our full earnings potential. And we have ensured, as you saw in the first quarter, that the bank is now more resilient, safer and can withstand adverse market volatility. (foreign language)

Urs Rohner - Credit Suisse Group AG - Chairman of the Board [Interpreted] Before we move on to the debate on item 1, the Secretary will announce attendance figures to you pursuant to Article 689e of the Code of Obligations.

Joan E. Belzer - Credit Suisse Group AG - Secretary [Interpreted] Ladies and gentlemen, at the general meeting today, we have 1,327 shareholders present in person, 1,711,315,256 votes are represented here today. Shareholders in the room today represent 20,220,865 votes. The independent proxy represents 1,691,094,391 votes.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board [Interpreted] Thank you.

I would like to briefly comment on the attendance figures. The person -- the shareholders or representatives of shareholders present in the hall represent around 1.18% of all the votes; and the balance, 98.82% of the votes represented today, are represented by the independent proxy, Mr. Keller, a lawyer. Mr. Keller will perform his or execute his votes according to instructions he has received and proxies he have received. Of course, he may have been instructed to vote for or against the Board's proposals or to abstain from voting. I herewith note that the Annual General Meeting today is qualified to pass resolutions with regard to all items on the agenda and therefore, let's begin dealing with item 1 on the agenda.

The 2018 annual report, including the parent company's and group's consolidated financial statements including the Compensation Report and the Auditors' Reports have been available at the company's headquarters for inspection and has been sent to you by mail or electronically upon request since March 25.

I would also like to refer to report in 2018 on our corporate responsibility, that has been available from us or you can still order it from us. And to order it, KPMG, as the auditors, recommend to approve the financial statements for 2018, both the parent company's and the group's consolidated financial statements. And KPMG has said they have nothing to add.

I herewith note that the requirements are met according to Article 731 of the Swiss Code of Obligations for approval of the financial statements. I would like to thank KPMG for their competent and professional work in the past year.

I herewith open the floor for a debate on item 1. Twenty persons have signed up on the list of speakers. And the first one I call is Hans-Ulrich (inaudible) from Bern; to be followed by Mr. Vincent Kaufmann, please.

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Unidentified Participant [Interpreted] Good afternoon, Mr. Rohner and Mr. Thiam. I'll talk about accessibility. I won't talk about compensation and similar things. About 10 years ago, Crédit Suisse, thankfully, took -- went to great lengths with regard to accessibility for blind and visually impaired persons.

They launched accessible online banking and teller machines for the blind and visually impaired and account statements for them. These were great achievements. The media covered that.

And this novelty was well received by the public and also by the impaired clients. All these great things that we now have certain problems with them. The new type of online banking can be operated by blind persons, but it stands to be improved. Unfortunately, only some parts of the system are acceptable and some buttons can hardly be operated by visually impaired persons. So we hope that, in the course of the 2019, this can be improved upon.

Because it is very important for blind, visually impaired persons to be independent in managing their bank transactions, and I thank you for taking efforts to improve on that.

And let me now focus on ATMs and teller machines. And for some time, we've had 2 types with speech control, the new series is working well. The old series was a major nuisance. In November of 2017, there was a software release, and the systems didn't speak anymore. And we complained persistently and the deficiency was then remedied. And at the end of November 2018, I noted that the ATMs were again speechless, as it were. And I informed Crédit Suisse about this deficiency and I checked back time and again with the bank whether the situation had been remedied. And following more than 2 months, I first got an appointment or I first got a deadline. They said end of March. But at the beginning of April, everything was still out of order. And I checked back again and I was promised for remedy by mid-April. But in recent days, I have noted that nothing has changed.

This is why I decided to bring the subject matter up here. Mr. Rohner and Mr. Thiam, I ask you, can it be that such correction takes more than 5 months to be conducted? After all, the blind and visually impaired persons get the feeling that they're not being taken seriously.

I can understand that there can always be machines out of order, but it shouldn't take more than a few days or perhaps at least a few weeks, to correct the situation.

Of course it is very important for us to be able to independently draw money from ATMs. And some types of ATMs work; others, as I said before, do not use speech to help the visually impaired. And we do not have both types at every location. Therefore, on behalf of the visually impaired persons in Switzerland, I would like to urge you to make sure that the 2 CS services for ATMs and for accessibility use high urgency to remedy the situation.

And in future, of course, you ought to avoid that such things occur again, and the ATMs are not accessible for months on end. Thank you very cordially if you care to take care of it. And I can also send you this text in writing. I have submitted it to you.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board [Interpreted] Mr. (inaudible), you are addressing a subject matter that's very close to me or close to my heart and close to our hearts. Let me put it in a larger context, as it were.

I'm very familiar with the subject matter. I was personally involved, about 10 years ago, when we took efforts with regard to accessibility of services to the blind and the visually impaired. And honestly speaking, what you have described today indeed is not acceptable for us, and it is not in line with our convictions and our standards and our intentions.

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First, you addressed the online banking system, which you said was worth improving. I take note of that, and I will contact the persons in charge. I'm convinced we will come up with a solution. This has got to be possible, of course, in our time and age today. And I'm convinced we'll make sure that the buttons will then work for you in the right way.

Second case you referred to, it's of course correct that it cannot be for this to take months until a function is corrected. It's correct that the talking ATM function is not available in older type of ATM, about 60 ATMs out of around 510 that we have. But we have taken efforts since we -- were reported that there was a mistake, especially as we've been analyzing and trying to remedy the matter applying high priority. I was assured that the solution will be there within weeks and will then work. And of course, now that you've come up on stage to tell us the story again, I will personally make sure that this is going to happen.

As I said, I can only apologize for this delay, and it's not in line with our convictions and intentions. On the contrary, we are convinced that accessibility for visually impaired and blind persons is very important for a services company like a bank. And so drawing money from a bank of course, cash from a bank is of course a matter of course. So you can assume that we are going to take care of the matter.

The next speaker is Mr. Vincent Kaufmann from Ethos in Geneva.

Vincent Kaufmann [Interpreted] Chairman, members of the Board of Directors, ladies and gentlemen, Ethos is here today representing many Swiss shareholders, primarily pension funds for these long-term investors. The gap between what you're proposing today against the share, a [full] 40% over the last little while, is not acceptable. The drop in share prices for Crédit Suisse has led us to a loss of around CHF 1.2 billion in 2018 alone. Nevertheless, the Board seems to be pleased with the development of the business and indeed describes what it's done as a great success.

Now when we look at the indicators you've shared with us, you may indeed be able to suggest to us that things are going to go well in the future. However, when we look at 2016 to 2018, allow me to say the following. The yield on shares was minus 40%, whereas those of comparable banks, over the same period, was only minus 8%. And I include American banks when I say that, that yield places Crédit Suisse in the second-to-bottom place in its peer group.

Now in your 2017 annual report, you proposed various objectives for a number of business areas. And they were not achieved in 2018, nor are they mentioned in the 2018 annual report. So I say there is a gap between what the Board says and what the figures actually show in reality.

Now it's out of the -- it goes without saying of course that without the restructuring, things would be even worse. So certainly, the 3-year restructuring plan was necessary in order to free the bank from the serious errors it had made in the past.

Members of the Board, may I say to you, we're still waiting to see the real results of your restructuring. So may I ask you why you are proposing to pay out CHF 30.6 million to Board members under agenda item 7. The CEO himself is getting a bonus of CHF 5 million on top of his large base salary of CHF 3 million. That's the second highest salary paid to a CEO of a stock market-listed corporation in Switzerland. We are not even sure that some of your directors even have much faith in the future of the bank. What happened to the 676,000 shares awarded to Mr. Thiam when he joined the bank? They were linked to the condition that he should remain in the bank for 3 years. And therefore, they should be listed. It seems though that according to the report, Mr. Thiam only holds 64,000 shares, 1/10 of those that he was originally awarded. Have the rest been sold? I presume they must have been.

So shareholders, unfortunately, we believe that the Board of Directors has a very short memory. It's only a couple of years ago, 2017, at the AGM that the Board members decided to cut bonuses by 40%. Today, we see them already paying out enormous bonuses, which were already out of proportion.

2.5% of your workers earn a huge amount less than that, of course. So we have decided to take the floor again today to call upon the Board of Directors to see sense and to listen more carefully to what the shareholders have to say. Ethos recommends that you vote against all remuneration-related items on the agenda and against the reelection of Urs Rohner as Chairman of the Board.

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And given the many risks and the various provisions set out in 2018, we also suggest that you vote no to granting discharge to the Boards of the -- to the members of the Board of Directors.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board [Interpreted] Well, thank you very much, sir, for your words. You already raised these points with us in advance, we've responded to you. Now the share price may have fallen, that's true, nevertheless, we see things rather differently from you. We've given you a detailed presentation of where the share price has been going, where it's going now and why and wherefor and how we stand against the other members of our peer group. Now you mustn't forget that we've just done this major restructuring operation. Other banks haven't done that yet. Some others did, but they did it earlier than we did. So you have to see what happens in the longer term. And of course, you're going to get different results, depending on how good your restructuring has actually been.

Now in our quarter 4 figures, we have shown that we are living up to our ambitious objectives. Let me just pick out an example there. We said that for the Swiss Universal Bank, we would make around CHF 1.5 million in pretax profits. It's actually gone up to CHF 2.2 million. People said that we were crazy to even suggest that. But thanks to the hard work of all of our employees and thanks to the implementation of our projects, we are doing very well with this bank, as you've seen. So we set our objectives. They were challenging objectives. Some doubted that we would achieve them. But as we've demonstrated in detail, we have achieved our strategic objectives. And of course, our management needs to be incentivized here. Remuneration is, of course, closely linked to the achievement of these objectives.

As to the number of shares, well, you can find that in detail in the Compensation Report. So I would invite you to read that. We're not going to speak about individual members in detail. But certainly, there have been additional purchases of shares in 2018.

So thank you for that. We will move on to Mr. Trümpi. And after Mr. Trümpi, Christine [Renaude], please.

Jakob Trümpi [Interpreted] Good morning, ladies and gentlemen. Shareholders, ladies and gentlemen, as you will realize, Mr. Rohner and Mr. Thiam are earning astronomical figures. Over CHF 12 million for Mr. Thiam; Mr. Rohner, CHF 4.5 million, including his bonus. Now this is not really earning money anymore, it's just absolutely ripping off everybody else, I believe.

And I hope people (inaudible) are listening. In recent times, many, of course, have earned less than this. I think anybody earning more than CHF 1 million should be subjected to tax at source rather than being able to live in some sort of tax fiscal haven. What about what's going on at the AGM? This is all just here for show because prior to the vote, everything has already been fixed up.

At the next AGM, in 2020, if none of us shareholders would come along the gentleman here would have to -- have come up with a new idea as to how to make things work.

I think it would be nice if Mr. Thiam could stand up and speak in German as well. He's shown -- he's proven that he can. It might be time, Mr. Rohner, to change some of the members of your management team, but I'll leave it there for the moment.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Well, thank you very much, Mr. Trümpi. We've taken what you said down, thank you very much.

The next speaker is [Christine Benatar] from [Lausanne] followed by Mr. [Stuckey] from [Peel], please.

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Unidentified Participant Ladies and gentlemen, good morning. Since Mr. Thiam is a French speaker I will also speak French.

Mr. Thiam, I came today specially for you because I'm really worried about your health, actually.

I'm very concerned about you. I think you're suffering from a very contagious disease, a serious disease, which seems to effect most of our managers, and which I like to call the (foreign language) syndrome.

You will know, of course, that the former (inaudible) has been imprisoned in Japan.

This syndrome involves suffering from the effect that money has upon us, and the money you earn the worse it gets. I think this morning several shareholders will come back to talk about this. How are we supposed to even understand this, to see Mr. Thiam earning CHF 3 million more in a single year, CHF 12.6 million. Nobody is worth that much. Nobody deserves that much, regardless of how outstanding they are. And why do I say that?

Well, because I think this is very dangerous. And you're not the only one Mr. Thiam who suffers from this syndrome, I think Mr. Rohner has it too, maybe he has it even more seriously than you do.

(inaudible) got it too, over at UBS. Daniel Vasella had it too, as did Marcel Ospel, you remember him from Swissair.

In 2006, I called on Mr. Ospel to explain to me how all this should work. I couldn't explain to my students how in a single day he could earn more than some of our countrymen earn in 2 years. Mr. Ospel wasn't really able to explain it to me. I said to Mr. Ospel, is it your ambition to be the richest man in the world, the richest guy in the cemetery when you get buried? What else are you trying to do?

I didn't come here today Mr. Thiam to just be another shareholder telling you that your pay is scandalous and revolting. It is and you know that, I don't need to tell you.

In your heart of hearts, I'm sure you feel partially responsible for the feeling among shareholders in Switzerland. We have no faith anymore in our business leaders. I won't call you Mr. (inaudible), I could do. But I would ask you to remember that you and Mr. Rohner, Mr. (inaudible) are responsible for the breakdown that we're seeing in society.

Where part of our society is becoming vulnerable, and where the rich wish to become richer and richer. You know very well Mr. Thiam that the French Revolution didn't begin with Louis the XVI, it began with Louis the XlV in fact, with the immense injustices that caused society to break -- to break down between the rich and the poor. If you earn more others earn less, and I think it's really surprising that you can live with a situation where you have this enormous pay rise, while most of the employees of Credit Suisse have had no pay rise for several years.

And so Mr. Thiam, I would call on you that for next year's AGM you place on the agenda the following point: The AGM should be allowed to give its view on the payment of the members of the Board, but only those present -- the shareholders present in the room should have the right to vote, anybody else who's being represented by proxy will not be able to vote, that means that 98% of the people wouldn't be able to vote, but that I think would actually give us the feeling that expressing our opinion counts for something. I mean otherwise, it's just sort of masquerade, isn't it? We just come along and play the game here at your AGM. I would ask you, Mr. Thiam, that the annual report should be published in French as well, don't forget that Switzerland has 4 national languages but English is not among them, that's all very well if you want to publish your annual report in English but I find it absolutely shocking that it doesn't exist in French.

And at [TBM], I would ask you, as Nestle did a while ago, to close your meeting in order to get those of us who've come from a long away the time to go home.

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Urs Rohner - Credit Suisse Group AG - Chairman of the Board Well, thank you very much. As to your specific proposals. As you know, at an AGM of a company like ours, it's the capital strength which determines voting rights and therefore, your proposal will not be able to be implemented as you have suggested.

We take down what you have said. And as to what you have said about remuneration, I don't think it's really correct to compare our CEO against Mr. Goshen, as you did. I think that's entirely inappropriate, but thank you nevertheless.

The next speaker is [Rosa Stuckey], please.

Unidentified Participant Mr. Chairman, ladies and gentlemen. My name is [Rosa Stuckey]. I'm a member of Actares, shareholders for responsible business. And today, I'll speak on behalf of around 1,300 members and on behalf of ShareAction, British NGO for sustainable investment.

In your declaration on climate change, which you added to the invitation to the Annual General Meeting, Credit Suisse recognizes that you want to contribute to fighting climate change. What does this responsibility look like? You position yourselves as a vanguard company for green finance solutions. And you have emphasized, again, that you -- our funding transition to a low-carbon economy, but is that really true? Let's look at the acts and facts last year and you will see a different picture. BankTrack has recently published a report showing that Credit Suisse is the third largest funder of businesses based on fossil fuels. Greenpeace calculated that Credit Suisse in 2017 is -- was responsible for twice as many CO2 emissions as Switzerland in 1 single year. So is it responsible to continue to make available billions for companies that make fuels accessible to many? Dear shareholders, Actares is convinced that cloud protection is meant to be differently. The IPCC's report last October has shown that we need to take action if we want to bring warming down to 1.5 degrees. Climate change is not simply phenomenon that will occur in the future. We're in the midst of it. And the generation of young persons have come to understand, they're demonstrating outside today for climate justice. And Actares has been demanding for years that Credit Suisse heed or adjust the internal guidelines to the Paris Agreement. Last year, several banks and insurance companies tightened their guidelines on coal. UBS is closing any finance on project level of coal-driven power plants, and insurance companies have identified the risks of global warming. Swiss Re, for instance, announced they would not do any insurance and reinsurance business anymore to companies that operate for more than 30% in the field of coal. When is Credit Suisse going to pursue this example?

According to your own information, since 2013, you have supported your clients issuing green bonds with an amount of $15 billion. Since 2015, green bonds have been growing dramatically. But the question arises how green are those green bonds actually. In the past, some projects were funded that promoted coal amongst other things, like a mine in Bangladesh. And last year the first Airport Schiphol in Amsterdam issued a green bond. And air traffic clearly contributes to the rise of CO2 emissions. The green bond principles are not binding and their insufficient guidelines. So how are you going to make sure that green bonds and sustainable funds actually meet the -- what they promise to be.

We assume that there would hardly be shareholders who want to approve dubious business if they know of it. So let us remind -- let me remind you that only 3 years following the Minas Gerais break of the dam, a joint venture was established and Brazil suffered a new tragedy due to the mining industry. The Vale dam break in Brumadinho, a small town, and the mud avalanche resulting from it cost the lives of 306 persons and a 100 of them are still buried under the soul -- under the soil, and investigation has shown that Vale was negligent in managing the Brumadinho dam. The devastating avalanche or landslide would have been avoidable most probably. Credit Suisse Asset Management holds shares in the amount of $40.5 million of Vale that was at the end of April 2019, and we're aware that Credit Suisse will not comment on individual companies and yet, this is about sustainability and the breach of human rights.

So what did Credit Suisse do following the first mining disaster, and what did they do after the second mining? And what does it take for Credit Suisse to exit from funding of a company like Vale. On behalf of the international network of those affected by Vale, Actares demands explanations and answers and Actares' questions are as follows: how are you making sure that green bonds are sustainable funds, meet the requirements, meet what they promise? When is Credit Suisse updating its guidelines on fossil fuels, in particular coal, in order to meet its responsibility in the battle against climate change? And when is Credit Suisse going to publish reports on climate-related financial risks? What has Credit Suisse done following

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Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you, Ms. [Stuckey]. As you stated, Credit Suisse recognizes that it has to contribute its share to battling climate change. And as I said before, we are trying to sustain or support our clients in transition to a low-carbon economy, but we believe this cannot be done overnight.

But it will take an orderly process, a controlled process, taking into account task forces and everyone else involved. We are in a leading position in funding renewable energies, not only green bonds, a total of 110 transactions with total value of $94 billion since 2010. And we support our clients in issuing green bonds, about $5 billion since 2013. Our Chief Risk Officer, Lara Warner, may add something later on about the specifics of green bonds.

And this alone is not sufficient, however, to meet the needs of -- the power needs of business around the world, of transport and heating, and you're aware of that yourselves. The world continues to rely on conventional power carriers, such as coal and gas. Just as a sideline remark, you said we were one of the larger funders -- financers of businesses that are active in these fields, coal, oil and gas. And you referred to certain NGO reports that said that the funding volume attributed to us in 2017 or 2018 lowered by 21%, and we are in the lower half of those financing companies in this market.

Now in order to coach the transition, we are implementing the directors of the Task Force of climate disclosures to disclose financial risks. And we've established a cross-function workforce, and you can find the details in the 2018 business report. I'm convinced, in 2019, you will get an update on further developments.

Furthermore, we are working with other banks in developing methods to adjust portfolios to the climate agreement -- Paris Climate Agreement. And since 2010, in all our locations, we have been greenhouse gas neutral in our operations. And our net greenhouse gas emissions, since 2010, has been reduced by more than 60% in absolute terms and per capital using various measures.

Now as far as Vale is concerned, the break of the dam and the mine, of course, we were affected buyers and of course, we suffered from it. Although -- and I would like to emphasize that we're not involved in funding this company in any way. You referred to stake of shares that our Asset Management was holding. As you certainly know, and I think we have told you before, the shares allotted to us were held on behalf of a client, these are not our treasury shares. Our own treasury shares or our own shares account for less than 1.1% of Vale's shares. And yet, we took this as an opportunity to conduct investigations into mining companies and to look closer into their operations, especially as far as (inaudible) retention bases are concerned, and we are going to be more stringent.

Lara, anything you want to add on green bonds.

Lara J. Warner - Credit Suisse Group AG - Group Chief Risk Officer & Member of the Executive Board Thank you, Chairman, I will speak in English. In terms of our green bonds, when we issue green bonds for clients, we do adhere to the international Green Bond Principles of 2018. The alignment of the green bonds with these regulations is certified by an independent external certification body. And for our sustainable funds, we disclose information on the funds' sustainability approach, best-in-class, the themes of the funds and negative exclusion criteria.

I would point out 2 more things, the EU is currently developing criteria for their classification of sustainability products and we certainly support this work, and are preparing to implement it in our processes. I would also reiterate what Tidjane Thiam said earlier around the creation of our Impact Advisory and Finance organization in 2017. This organization is actually playing a leading role around the world and even further refining what impact investing and green bond investing should like look. So thank you.

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Urs Rohner - Credit Suisse Group AG - Chairman of the Board May I -- thank you. The next speaker is [Thomas Kesselring], to be followed by Mrs. [Laura Frey].

Unidentified Participant Mr. Rohner, Mr. Thiam, members of the Board of Directors, dear shareholders. I also speak on behalf of, A, Actares. It is the fourth time now for me to refer to lendings to Mozambique -- secret lending to Mozambique done by Credit Suisse in 2013. But it's the first time that I would like to thank you and congratulate you.

There are 3 main players involved in the credit scandal, and they are quite different in the way they manage things. (inaudible), shipping company, operates on the basis of open threats that when you publish something against their interest. In Mozambique, where the secret service following the Idai Cyclone continues to operate smoothly. You will be in difficulty if you tried to disclose anything apart from weapons, poison is being used more frequently in recent times. And the representative in Mozambique present here today live dangerous lives there. Russia and the State Bank, VTB, that was taken on Board by Credit Suisse in the process of lending transactions. So Russia is also a no-go zone for people in Mozambique. Now here with us and with Credit Suisse, they feel safe. There is no risk, there's no danger for them to be threatened, to be shot, to be poisoned. And this is what I would like to thank you, Credit Suisse, for.

You are confining yourselves to either remain silent when critical questions are asked or to give very short answers. Let me use this opportunity to quote some answers that you have given me on the Mozambique loans. So last year and the year before, and to face you with the facts that in the New York indictment, in 2018, I'll confine myself to compliance and loan pushing. On compliance, 3 investment bankers of Credit Suisse London are charged with circumventing compliance, not only once but on several occasions. First, in preparing the first Mozambique loan of $372 million and then an add-on -- with regard to an add-on of $250 billion and the third time in an even greater transaction originally $785 million, moving up to $850 million. I asked questions 1 and 2 years ago and you referred to the strict regulations in your bank and said how effective they are regarding all transactions, reputational risk review would be conducted and there were sustainability principles that were tough, and that can be controlled. I took notes of what you said. And the bank had clear guidelines, you said. And you answered as if your compliance system was full proof. Now circumventing compliance in the particular case was not an exception because last September FINMA because of allegedly similar transaction reprimanded Credit Suisse. And I quote, "FINMA identified deficiencies when it came to comply with anti-money laundering and deficiencies in the control system and risk management of the bank." These deficiencies refer to categorization of high-risk business relations and investigations in case of high risks and plausibilisation. FINMA refers to a client relationship manager, who for a period of several years has circumvented and bridged compliance regulations and has never been disciplined by the bank, but on the contrary has been given high bonuses and compensation. May I ask you Mr. Rohner, Mr. Thiam, whether Credit Suisse -- whether the deal team that was so successful in launching the Mozambique lending -- loans was also honored with high compensation and assessments. The 3 bankers, according to the indictment, were acting on behalf of investment bank, one, that was Credit Suisse, and based on the intention to provide, at least partially, a profit for Credit Suisse. The 3 persons were Managing Director, another Managing Director and a Vice President, proud titles, and these titles go to show that the bank must have been very happy with their performance.

Now moving on to loan pushing. The indictment states that the fishing fleet and the credit did not meet a need of Mozambique's, but the plan for this deal was actually devised by the 3 investment bankers and (inaudible) company. And the motives for this fishery loan were further self-enrichment, kickbacks and making available a first repayment for the ProIndicus credit, so that it will not be disclosed. After all they meant to keep it secret to the entire world. So the Mozambican had to accept that fleet with bribing money $3 million, $7 million, $8.5 million, again, $8.5 million plus $15 million. That's paragraph 76 of the indictment. When, at last year's AGM, I said that I suspected that the credits have been pushed or imposed on Mozambique, then you, Mr. Rohner, objected saying and I quote, "My presentation was a caricature of the process." Now I ask you, the -- what else is it then? What is described in the indictment? It's loan pushing at its best with exorbitant lubricating money.

Mr. Rohner, I do not dare suspect that your answers to my questions at last year's AGM and the one before last year was given against your knowledge, that would mean that you would've hidden the truth, and I'm not saying you are hiding the truth, I don't want to do that. When I asked you about provisions for this case, your replies made the impression as if such provisions have never been -- would never be necessary. But can it be that you

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I have a final brief question. You reinsured the loans -- the Mozambique loans through Lloyds. And the Mozambique business has turned out to be a giant credit default case. My question is how does Lloyds respond to that? Do they cover the loss? Then at least some of the causes of the civil society in Mozambique would be met. Can you give us hope there? It is very urgent to resolve this scandal. Mozambique virtually is a failed state today. The situation there -- social situation there is dramatic. And if the crisis persists, we need to brace for refugee waves coming into Europe as well.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you, Mr. [Kesselring]. First, a few general remarks and then our General Counsel, Mr. Cerutti, will comment.

First of all, let me state that the impression has been created various times that in connection with the Mozambique transactions, Credit Suisse had charged excessive commissions and fees. Was said that hundreds of millions of dollars were paid. Already last year, I said this is totally incorrect and wrong. On the whole, these 3 credits were just 1/4 of it, 1.6% of the transaction volume. This is a fee that is in the low range for these type of credits. Over the past 3 years, and we've been involved in 3 levels. And you understand that we cannot comment pending legal cases. We proactively worked with the investigational authorities and we continue to do so. The indictment contains a number of reproaches against high level senior officials in Mozambique and managers and former managers of the banks, and this is depressing what we hear. They have -- this is based on e-mails, e-mails that were not stored in the bank in order to take fraudulent action.

Now for the first time, we've had access to this external e-mail correspondence. The U.S. Department of Justice has released them and it is now our task to make sure that the control systems will continue to be improved, that we continue to cooperate in the investigation and cooperate with the authorities in charge, and we will do that. And if it turns out in the end that some mistakes have been made by us then of course we will take corrective action.

Secondly, Credit Suisse for more than a year has played a supportive role to solve the current situation in Mozambique. Minority stake in one of the loans is what we still take, but we were leading in working party to discuss and negotiate with the government of Mozambique. And Mozambique has stopped these negotiations when the state of Mozambique decided to press charges against Credit Suisse. And this is again a pending legal case that I cannot comment. And finally, I'd like to state, and this goes beyond Mozambique. The problems that served us here, not just about one country, bank or 2 transactions or more, they go further than that. Therefore, we need more transparency when it comes to finance governments and we need an innovative approach. And in order to do that we worked out a new landing covenant headed by our CEO, Tidjane Thiam. Private lenders will commit to disclose conditions in order to make sure that decisions of governments will be publicly available for the populations and for the NGOs [quasi] state observers and capital market players. We are convinced that this is going to be a very important means in the fight of corruption and to make sure that fraudulent action can be reduced in the future.

This private initiative has now been launched. And I defend it [that you will see] concept in the Board of International Finance, where our member of the Board has now been approved and is now part of the most recent principles in the IMF. We welcome this, we support this and we support the IMF to have higher transparency. And we are confident that in the framework of the G20 summit in Japan, this initiative will be implemented. So much on these 3 topics. Mr. Cerutti, would you want to add something to that.

Romeo Cerutti - Credit Suisse Group AG - General Counsel & Member of the Executive Board Thank you, Professor, [Kesselring]. We will meet on Monday to discuss the matters also with representatives from Mozambique. We are looking forward to this discussion. But I like to repeat what our Chairman of the Board already said, these are current investigations by authorities in the United States and in London. Many of the most recent facts that have emerged from the document that you have mentioned the indictment of the DOJ were new for us as well, because our former employees did everything behind our back with private e-mails, so these are new facts that were not known to us before and should not have been known to us.

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Now about the insurance issue and the provisions. You've mentioned provisions here, I'd like to refer you to the annual report like last year. The provisions are mentioned there. We do not itemize our provisions. And as far as the insurance issue is concerned, we are currently talking to the insurance companies, but it's too early to make a conclusive statement at this point.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you. Our next speaker addressing the same topic, [Denise Namurate] from [Matuto], the capital of Mozambique. No, it's Mrs. [Denise Matuto].

Unidentified Participant Thank you. Mr. Chairperson, we, my colleagues from Mozambique, we appear at this AGM on behalf of millions of Mozambican people. The real victims of this multibillion dollar illegal debt scandal, involving Credit Suisse. We, the Budget Monitoring Forum, a coalition comprising 21 civil society organizations working on transparency and accountability of public finance, and with the constituency of over 4 million people in Mozambique are cognizant that the Mozambican debt crisis is a direct result of a fraudulent and illegal collusion between Credit Suisse, contractors and the Mozambican government officials, which cautiously and intentionally acted to cause harm to an already weakened Mozambican society and economy and triggered a macroeconomic and social crisis in the country.

Last month, close to 1,000 Mozambican people were killed by Cyclone Idai. A climate-rated natural disaster that had its origin elsewhere in the world. Many more causalities can be expected from Cyclone Kenneth, which reach Mozambique as we speak. Various organizations, the IMF, the UN, the World Bank estimates that climate-related disaster recovery will cost more than $2 billion, almost the same amount as the illegal debt scandal, which, according to the charges brought by the U.S. State Department of Justice, was orchestrated by various parties, including former Credit Suisse bankers, who, and I quote, "Were agents acting within the scope of the employment on behalf of Investment Bank one, with the intent at least in part to benefit Investment Bank one." That Credit Suisse did not have sufficient controls in place to prevent these employees from committing multiple acts of fraud and corruption, did not report these officials to authorities even when wrongdoings were established, shows a shocking failure on the part of its management, one that shareholders must and cannot ignore. Credit Suisse has continued to act as an adviser to investors holding Mozambican debt and has [stopped] payments on the portion of the debt it still owns. We are dismayed that after having failed to demonstrate robust systems and processes, Credit Suisse continues these mandate without addressing -- declaring conflict of interests, given its role on the legal debt. At the very least, the Budget Monitoring Forum would have expected Credit Suisse to have offered to return the fees made from that transaction. The debt crisis is exacerbated economic vulnerabilities of -- has donors and added development partners withdrew in response to the growing evidence of illegal and criminal conduct by the banks and Mozambican government officials involved in the fraud, which pushed Mozambicans people deeper into poverty. People are dying due to lack of food and sanitation, lack of medicines in hospitals and millions of peoples don't have access to books and quality education.

The U.S. indictment lays bare various instances where Credit Suisse internal controls to prevent bribery, money laundering and added financial crimes in conflict of interest were wholly inadequate and effective. Some glaring examples include instances where the deal team managed to alter terms and conditions without the legal team signing off changes, the ability of the deal team to circumvent compliance team's requirements also points to the weak internal systems and governance. Combine these actions contributed to one of the most damaging severing debt crisis in the world.

Mr. Chairperson, Credit Suisse culture has exhibited during the Mozambican debt transactions and its aftermath, is the reason why the bank continue to underperform. Shareholders are reminded that between 2009 and 2018, violations of the U.S. Federal Laws have costed Credit Suisse close to $9 billion that is value lost to shareholder. This range from fines for corruption, tax and securities fraud and sanctions violations. All these regulatory failures have destroyed shareholder value. Irresponsibility and recklessness have a history at Credit Suisse. Like the Mozambican people, Credit Suisse shareholders pay a price for systematic failures and poor governance culture within the bank. Unlike the Mozambican people, Credit Suisse shareholders have sufficient instruments to mitigate against damaging conduct. The Budget Monitoring Forum is calling on shareholders to use their influence to address conduct, which if it's allowed to continue and unabated can erode all value of Credit Suisse, destroying long-term viability of the bank.

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Shareholders should ask, the Credit Suisse Board, should ask why the Credit Suisse Board has failed to provide adequate disclosure about the Mozambican debt scandal. Additionally, failure to Credit Suisse -- of Credit Suisse to add adequately provision for risks arising from the Mozambican debt suggests a culture of misstating risk and failing to manage such risk. As shareholders, this AGM should demand answers from the Board.

The Budget Monitoring Forum is embarking on global actions on behalf of the Mozambican people, to get a fair outcome in the aftermath of the legal debt crisis and to avert a further humanitarian crisis. We, therefore, ask Mr. Chairman that Credit Suisse to cancel all outstanding obligations by Mozambique, has various criminal administrative and judicial inquiries, provide clear evidence of the systems-wide failures by the bank.

Credit Suisse cooperates with regulators and authorities to ensure that all responsible parties are held accountable for their role in the $2.4 billion illegal debt scandal, this means full transparency on the genesis of the legal debts. Credit Suisse returns with immediate effect all proceeds with interests from the Mozambican debt crisis or the very least -- at the very least, the monies will be useful in saving thousands of lives as the international community mobilizes relief efforts after the climate-related disasters. It's rather striking that, the IMF announced $180 million emergency package in response to Cyclone Idai, humanitarian crisis, which is far less than the fees generated by the bank from the criminal illegal debt transaction. Credit Suisse works with authorities in Mozambique and elsewhere to see that through the return of the proceeds and damaged payments, the people of Mozambique are not saddled with paying back a debt that provided them no benefit whatsoever. We believe that continued shareholding without conditionality would imply that shareholders are complacent to the harmful conduct of the bank and its consequences to the people of Mozambique.

We truly believe that your ethical and moral values will speak volume on behalf of the people of Mozambique. The realization of economic, social and cultural rights in Mozambique should not be jeopardized by de-servicing this particular illegal loan. The Budget Monitoring Forum continues to lead various initiatives across multiple jurisdictions to hold responsible parties accountable for their role in the illegal debt crisis. Mozambicans and international civil society is watching both Credit Suisse and its shareholders closely to ensure that they act responsibly going forward.

Mr. Chairperson, finally, the Budget Monitoring Forum invites all Credit Suisse shareholders and the Board to join our efforts towards a sustainable solution to the Mozambican debt crisis. We are available to welcome all interested parties to Mozambique to witness firsthand the true cost of poor internal systems and processes. We came all the way from Mozambique seeking for answers. Thank you.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you very much, Mrs. [Namurate]. I think at the highest level, I would say we also have every interest in making sure that people are responsible for this are -- made -- held responsible and have to basically bear the consequences of their acts, but we do that after we have done a thorough investigation. That's why we cooperate with all the bodies that are tasked to do that in various countries we have -- I have been extremely open, cooperative and [I] will continue to do so, that is how we do that. We do not take foregone conclusions before the end of an investigation, and maybe also not do that in this particular case. One thing, I have to correct you, it is, again, not correct that Credit Suisse did -- got a fee of more than $150 million, which you alluded in your speech. That's actually not correct. As I pointed out, our fee was 1.6% of the transaction volume, which is roughly, I think, $24 million. So in fact, that's not correct. Although the other things, as I've said, we are deeply shocked about some of the things that have come out in the indictment in the U.S., things that we have not seen before. And as we -- as I also have said before, we will continue on the investigation and do what we have to do from our side to make sure that those are responsible for any wrongdoing, actually have been taken to court.

Tidjane, do you want to add anything?

Cheick Tidjane Thiam - Credit Suisse Group AG - CEO & Member of the Executive Board With your permission, I'll say a few words. First of all, to express my sympathy for people of Mozambique. I appreciate how difficult the situation is there. And you can be assured that certainly the Chairman, the Board, myself, the entire ExB of Credit Suisse is determined to do everything we can to improve the situation.

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Maybe just a few comments. (inaudible) following my general counsel, he said, we are very constrained in what we can say on this matter, that is a fact. The fact that there are legal proceedings underway is very constraining.

The third thing I will say, and it's not to escape responsibilities, but I wasn't here at the time those facts happened. And as a manager, what I can do, I cannot -- I can only change the future. And that's what we've been working on very hard. The Chairman mentioned transparent lending covenant that is really important. It's an initiative that we have driven or have been very involved with other banks. I can name Standard Chartered and HSBC, to make sure that the debt market for emerging economies becomes more transparent, that is sponsored by the IIF. There'll be a very important meeting at the mutual finance in Paris on May 7, which we will attend, and we're driving this forward. Japan, the Japanese government, does the next G20 has thrown its weight behind this. And that I think I'm highly confident that, that will happen and that will improve the situation for all of the developing countries. And on a more personal note, I can assure you I -- Tony Blair was my (inaudible) appointing (inaudible) commission for Africa, 2003, 2004, work led to the biggest debt relief operation (inaudible) I was very involved in that. So on a personal level, I don't feel that I lack -- I have a lot evidence of my commitment to those issues and obtaining -- and a track record of obtaining results. And that's -- sorry, Mr. Chairman, with your permission, I just like to react to what I consider inappropriate comments made by Ms. (inaudible), attacks were very personal nature.

In '93, I was -- we announced enough about Goldman Sachs, and I don't know madam if you have ever worked without being paid, but I went back to the Ivory Coast, I worked for the government, and I was not paid. I had 4,000 employees and I committed not to be paid until my employees could be paid. And I worked for 1 year for free. So I don't take lectures on my values, on my integrity. If you have facts that you want to put on the table do. But I just think it's inappropriate to compare me to somebody who's in jail. I highly resent that. And I just want to put that on the record. Thank you.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Mr. [Payout Loakers] and then [Stefan] (inaudible).

Unidentified Participant I shall speak in Swiss German. Mr. Thiam, members of the Board, shareholders, ladies and gentlemen, I am shocked today when I hear about Mozambique and what's happened there. We seem forever to be hearing stories about Credit Suisse, and you're always trying to polish up your image. I live in (inaudible) and actually I parked by the cemetery where [Alfred Azure] is buried this morning, and asked him what he thought, and I can tell you that he's not very happy actually with what's going on.

You talk about ethics. Now of course, we know that there have often been problems with this over the years, but he's very unhappy, I can tell you.

Let me ask the Board, can I perhaps be sure now that this is the final time that we have to hear about this kind of thing? Can we be sure that it's over for the future or will be hearing more? I was thinking about global warming and thinking that what you're saying doesn't really echo what climate experts say. It's a bit like you going to the doctor and being told that you have cancer and asking whether you can be cured or whether it's too late.

I think if you ask that sort of question about the climate to leading climate experts, then they would tell you that it's getting on to be too late. What you're doing is not enough. You don't have a cure. Now you know, when you go to your doctor and the doctor says that cancer is going to get you, well, you won't accept that, will you? You'll do everything you can to get well again. And I think we should do everything that we can for the environment so that it gets well again. We need to attach a much greater weight to the environment because it will go downhill much faster than you think.

Now it's very important I think for all of us to keep a close eye on what Crédit Suisse is doing, and I would invite you all to do so. I come from (inaudible), a climate organization. And this is not to just an issue that affects young people. We're all concerned with it. I would call upon you though to listen to these young people, listen to the brilliant ideas they have about how we can solve the world's environmental problems. That

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Imagine how great it would be if we could really be supporting the environment. I would be really happy if you would commit to this.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Well, thank you very much. I don't know why you would say that I would be of a different opinion to climate experts on the subject of climate change. I've got 4 children, aged between 10 and 24. And I've had a lot of intensive discussions with them. I can tell you, I'm sure you can imagine the sort of thing that they say. And I think the only thing we could say is that perhaps we have different views about how we get from A to B. How quickly we can affect solutions. We're lucky here in Switzerland that we have such a lot of hydroelectric power generation. If you look at other countries like Germany and other countries, they really need to make a total turnaround in their energy generation.

We are doing what we can, operating in a climate-neutral manner, funding climate-neutral technologies. So I don't really see that why you would think that we're of a totally different view. Now as to skeletons in the closet, let me tell you, we, the management, the Board, myself, we're doing everything we can to ensure that the bank is run properly and ethically.

Now we do everything we can to ensure that we don't have any further instance in the future. You can never be entirely sure. We've invested very heavily, increased our compliance department. When I got into the banking business, back in 2004, we didn't have anything like that. We were doing our best to minimize risks, really step up the sanctions that apply to misdeeds and constantly try to improve. That is what we're doing. That's what we've set ourselves, the task of doing. And if any errors occur, then we do our very best to put them right straight away.

I can tell you that I'm not aware of any major skeletons in any closets at the moment. That's for sure. We will clear everything up as rapidly as we can as we always have done, both before, during and after the financial crisis.

We have Mr. (inaudible) on the speakers' list next, and then, [Laura Frie] from Solotone.

Unidentified Participant Good morning. I was very sobered by what I heard about Mozambique as well, and I've actually made up a song for you today. I've composed a song, which I will sing in German.

(foreign language)

Somebody talked about Mr. Escher just now. He was a wonderful entrepreneur. He had visions. And Mr. Rohner himself said that there is an additional risk associated with offering countries, and I think that is incorrect. Now I have a poem.

(foreign language)

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Well, thank you very much Mr. (inaudible). I think that your poem and your song were both excellent. I like the poem, in particular. I hear the message behind your poem. We've understood what you have to say. And we, the management and the CEO as well as the Board, will commit ourselves firmly to achieving a sensible solution for Mozambique.

Now as I've said and I must say again, legal proceedings are underway and they have to take their course. The next person on the list is [Laura Frie].

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Unidentified Participant Perhaps, I could just respond to what you said before about the environment. Perhaps, you don't agree with us about how we get from A to B and at what pace. But scientists all over the world are warning us that if we don't want to see complete extinction on the planet, then we need to change something right now. It's actually too late already, and we should have done something before now. You can't fail to agree when people say that we need to take action right now, if at the same time you say that you recognize the risk of climate change. Now to my point, ladies and gentlemen, you are here to set Crédit Suisse on its course for the coming year. Ask yourselves, how long will this still be possible. Young people all over the world are asking themselves this question every day: Will we still be able to live in safety and security? Will we have enough to eat; will we be able to have children; will these children be able to survive; will we be able to teach our children to ski; will the snow all be gone? We're seeing global warming. It's been going on for a few years, and it's no longer reversible. All we can do now is to limit the damage.

The behavior of Crédit Suisse is intolerably damaging. It is bringing death, and it's something we cannot put up with any longer. If we don't make massive changes right now then the consequences are going to be catastrophic for people, for the environment and for the economy. But what do I want from you today? Well, when you look at the position paper on environment and sustainability, I want Crédit Suisse to implement what they say in the declaration on global warming under item 2B. I quote, "We promote the transition to a low-carbon economy." And then you also have a point about sustainability. "We are committed to ensure that our businesses and services support -- sorry, show standards at all levels. We are also committed to the United Nations' sustainability objectives."

Now we don't want this to just be empty words. Since 2017, Crédit Suisse invested CHF 3 billion in what we call extreme fossil fuel businesses, including oil drilling in the deep oceans and in the arctic, coal mining and liquid gas. Dozens of companies active in these areas receive millions in credit from Crédit Suisse. [Let's not forget] the energy -- the world's largest mining -- coal mining company, Glencore, which is basically polluting large parts of Africa. The company is behind Deepwater Horizon. ExxonMobil as well, just to name but a few. It's a long and horrifying list. And the Swiss banking industry, led by Crédit Suisse, invests in such a way that causes 22x as much CO2 emissions as Switzerland itself does in a year.

Companies like Kinder Morgan in the U.S. infringing the rights of indigenous people in North America, other human rights infringements are going on. The list, as I say, is endless. In 2017, the Federal Office of Environment concluded that these investments are a part of a movement, which would deliver climate, a temperature -- a global temperature of 4 to 6 degrees increase. And so they're finding new solutions. You're helping companies to tap the world's last oil reserves. Oil reserves are nearly exhausted. And new technologies are going to be vital. So I call upon Crédit Suisse and you, as shareholders, to accept your responsibility and alter your behavior. In your sustainability declaration, you state that you will support development for the current generation without endangering the chances of future generations. But what Crédit Suisse is doing at the moment does not reflect that in anyway. It's completely unacceptable. I want every single one of you in this room to think about -- to start thinking about this right now on your way home and in the coming days. Think about your behavior. Think about your investment behavior. Think about the morals and the ethics of all of this. Don't just shrug your shoulders and allow it to be business as usual. Don't sweep it all under the carpet. Begin investing your money in such a way that the future of your children and your grandchildren is not irreparably destroyed. Thank you.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you very much. Well, I'm sure that all the shareholders heard what she said and that you've taken note of it.

Some of our principles deal with fossil fuels and other energies.

Lara J. Warner - Credit Suisse Group AG - Group Chief Risk Officer & Member of the Executive Board Thank you, Chairman, and thank you, [Laura]. First of all, I just would reiterate what we said earlier, Crédit Suisse has had a focus on climate change for a very long time. The Chairman and CEO quoted back to 2010 some of the key statistics, not only having a greenhouse gas-neutral footprint for Crédit Suisse but also beginning the work on 110 transactions in the renewable energy space as well as, since 2015, the $15 billion of green bonds. So this has been a long-standing issue for Crédit Suisse. I would also say that in principle, Crédit Suisse continuously looks at our policies and procedures in all areas of fossil fuel and renewable energy to ensure that we are maintaining and moving our standards in a way that's

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Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you very much. Mr. (inaudible) is the next speaker on the list, followed by (inaudible).

Unidentified Participant Members of the Board and the management team, have you read the latest report in the IPCC about global warming of 1.5 degrees? The Global Research Group has provided an additional summary for decision makers, precisely for people like you. So I don't think I need to tell you how bleak the future looks or how unfair it is, vis-à-vis, future generations to carry on investing in fossil fuels. And I don't think I need to tell you either how urgent it is that we take action and how we might solve these problems. The fact and the reality speak for themselves in terms of climate change. I don't need to stress the problem because it's very clear. So there's no need for me to exaggerate.

Please, let me invite you to read the IPCC report. Inform yourselves about the environmental crisis. And any questions that you have will be answered. It will be clear to you, and I hope that you will decide to correctly. Our global -- our world and the global economy are really under threat. One of the conclusions of the agreement to 2015 is that the financial sector had a big role to play in terms of bringing business into line with environmental needs, but what's happening in the Swiss financial market is precisely the opposite according to the government. Swiss investments could in fact lead to global warming of 4 to 6 degrees. You need to decide whether you really are going to commit to a low-carbon economy or not, whether you're going to just continue as you are and thereby, lose the confidence of society and indeed your shareholders and bring our planet closer to disaster than it is already. Are you going to continue profiting at the expense of our future? If you read the position papers of Crédit Suisse about environmental issues, then you'll notice that there's a big difference between the words and what's actually being done. The difference couldn't be greater. So Mr. Rohner, you say that you want to take on responsibility here to be sustainable and to have high social standards. Well, what about ExxonMobil, Glencore, Vale, BP, Mozambique and so on and so forth, what's going on? Aren't you ashamed of yourself to be lying in such a bare face manner? Mr. Thiam, don't you feel bad when you walk past young demonstrators in the streets, knowing that their future is being destroyed by the behavior of Crédit Suisse? What are the values that you're communicating to your own children or not, sir? That's naïve, but I do accuse you of arrogance and contravention of human rights.

Ladies and gentlemen, if we wish to avert the environmental crisis, we need to engage in radical change, and that's why we want the Swiss -- major Swiss banks to immediately exit fossil fuels investments. We need to lead the way here and really deliver a carbon-neutral economy by 2030.

Stepping out of these investments is not radical, it is rational. It is the only choice that we have in order to avert the crisis and to save the world as we know it.

The laws of nature cannot be negotiated on, but policies, of course, can be. So shareholders, there's going to be an increasing need for resistance here. You need to demonstrate to the Board of Directors that they must take responsibility here, otherwise, I call for you to vote with your feet and sell your shares. Please, take the right decision. We didn't come along here to ask for favors. The time for that is gone. We don't have time for that either. You will have seen the extinction rebellion demonstrations going on in London with people calling for our future to be better secured.

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Millions are revolting around the world. And people will continue to do that until they win. And the storm that they cause will blow away everybody who does not support what needs to be done. Mr. Rohner, as I say, I am not going to claim that you are stupid, but I think you do know that you are lying, and I will leave it there for the time being.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you very much, sir. Well, what a passionate speech. Well, one of the values that I have passed onto my children is that I don't accuse others of lying when there is no evidence for it. So I would thank you for taking that back. Otherwise, what you said was highly repetitive. We've already addressed these points. We are very concerned about global warming and climate change. We have policies in place, and what you have said is simply incorrect. I have different values, which I try to communicate to my children, I can assure you. The next person on that list is Mr. Troxler and then, Ernst Schmid is next.

Urs Troxler Mr. Rohner, Mr. Thiam, and the entire Board of Directors, including the ladies and gentlemen not present here today, you're abusing the hopeful word of sustainability. Your lawyers are aware of that. If you have to read in the small print, of course, about restrictions or bans, well, I think that's true. You're putting money into climate disasters, coal, oil and gas, including plastics. This is worthless investment, investment that will become worthless if we are to reach the climate objectives since last summer. Psychotics, narcissists and bribed politicians have been the only ones to deny the climate crisis. Who is going to cope with the loss? You, collectively, you know our share of globally USD 200 billion of investments that will get stranded and become worthless. And maybe we will soon see people protesting against Mr. Thiam (inaudible). So stop all those of foul loads and look into or inform us, Swiss, that they need to take their own responsibility rather than using those high-gloss advertising material. We need to know what the climate war demands from us, from you, from me, from the Executive Board. A lot of things have been destroyed already. And instead of making commercials, why don't you publish a special issue on biodiversity and climate change so that everyone becomes aware of what we are destroying and what has been destroyed.

Do you know that -- are you aware that our Swiss politicians have missed out on a lot. And coming to your comment on the Mozambique case or the corruption case, where you funded those loans, there were 3 scoundrels in our bank who took off CHF 200 million to their own pockets, and not even their artificial intelligence noticed it. As long as Crédit Suisse, with regard to its corporate responsibility, its corporate responsibility does not charge or take its own is scoundrels to court, you're the ones to blame yourselves. And with your outrageous salaries, you are great role models for your (expletive) stuff. There's been growth being suggested in -- on item 7 on the agenda, and this would yet be another disaster, following the cyclone. We've heard about one more in -- happening last night in Mozambique. It's terrible there. So Mr. Thiam, why don't you make donation, maybe a 6-digit figure to the Red Cross or whoever may be a donor. And if you find it difficult to get the money, why don't you get help from the others on the Board of Directors. Okay, fair enough. And you Mr. Rohner are not in control, I think, with this self-service shop. Give your colleagues some broom to sweep the shop and introduce a whistleblowing service with a salary guarantee. I wouldn't have been allowed in with a broom by the way, so instead of that, take this brush, keep the big one and pass the small ones on to clean Crédit Suisse up. And for the purpose of your artificial intelligence, please take note that humanity is mad enough to destroy its own foundations, and it can't be stopped as long as people keep believing in growth, especially people in the financial industry. And as far as sustainability is concerned, Crédit Suisse does not sell any stranded products. Thank you.

Now regarding item 7 on the agenda, my pension fund and I want a better share price. They don't want to have outrageous salaries. The next economic crisis and climate crisis are rightly addressed at Paradeplatz. Of course, the financial market in Switzerland is not sacred. We need ethics and using this for the second time today, ethics, I deny and will say no to all the emotions that are driven by growth. And to make sure I can say, yes, next year, why don't you go into a Boy Scout camp with your members of the Board of Directors without your smartphones and without alcohol. You -- just bring along some food and talk about ethics to be happy after 1 day of training. So just remain a human being and discuss about every piece of criticism that is being expressed at this rostrum today. And then everything will probably look differently. Mr. Rohner, I hope you will have the idea of calling in an Extraordinary Annual General Meeting on climate change and to elect a climate researcher to the Board of Directors. Now take Henri Dunant, who is a Swiss, as your role model. And our SMI is going to go up. I wish you a lot of success.

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Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you very much Mr. Troxler. Just like to comment on one point. Whistleblower agency, we've had it for years in our group. And of course, whistleblowers are protected by specific processes. If somewhere points out mistakes or points out problems, then, of course, they will retain their position in our business. That goes without saying. And we check on that very carefully.

Next speaker is Mr. Schmid to be followed by [Nadia Coone].

Ernst W. Schmid Good afternoon. I actually read the compensation report. It took several goes at it. It was a bit of a read, challenging read, and you cannot cope with it without a list of English acronyms that when you read that and look at the valuation criteria, the assessment criteria for the CEO and other functions, then what you see is that most points mentioned actually go without saying. They're obvious. And the fixed basic salary is good enough to cover that already. Back in the '80s in Peru, I had merchandise at the customs because the customs officers didn't want to do their work without being paid a bonus. And friends of mine said that this was the rule as they were paid very modest salaries. But with our bonuses, where we're not really close to corruption, yet, but it seems to be looking as if you only work to rule without being given a bonus. We need to be clear that the kitty from which you take the bonus pot is owned by clients and shareholders. So a bonus cannot be guaranteed. There's no bonus without operating profit and if so, only if there are no major decreases in the share price. That's the ultimate pre-requisite. Take this step forward. It's overdue for banks. Bonus policy that, even in case of bad business or losses, will then renounce on a bonus. That will be understood by everyone, but bonuses were increased in 2019 and that's a nuisance to many shareholders because the increase in the bonus for the Executive Board does not seem to mirror the decrease in the share price. I compared it -- I saw in the electronic banking that there is unrealized gross profit of minus 36.48%, unrealized net income, minus 40.16%. Now this is the origin of the nuisance because apparently, bonus increases and the share price performance do not correlate with each other. I'll show you this chart once again. It's pointing down. And I'm showing here, I hope you can see it. It's a rising curve, and that's the bonus. The bonus is not kept down, it's raised. And this is in contradiction. If it was in correlation, the share price was a falling curve. Well, we know that it -- the share prices went down on average. And the contradiction is that total compensation rises by 17%. So actually this is devoid of logic. And from anything devoid of logic, of course, people get angry and people get annoyed with the noncorrelation between share prices and bonuses. What are actually the most fundamental key ratios? The most important figures for shareholders really are the dividend and the share price.

Now the other bonus criteria that are devised there that are mentioned there are difficult to understand to some extent. But as compared to the fundamental figures for shareholders, it's actually nothing else than bean counting. We should get back to focus on the shareholders' view and determine bonuses in accordance with profit on the share: the dividend. Sometimes, it seems to me that there is impatience in people who want to earn a bonus, and it's close to greed. I get the feeling that there is nice fruits hanging on the tree, but people want to snatch those fruits before they're ripe. So take a bonus when it correlates with the share price.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you Mr. Schmid. Well, you said, you read carefully our compensation report, and you will have seen that a major share of the long-term variable incentive components are directly related to the share price, relative total shareholder return, RTSR. So that's precisely the effect you refer to. And that's what we intended to have. Thank you very much. Next we have [Nadia Coone] from (inaudible) and then Mr. (inaudible) from Einsiedel.

Unidentified Participant Dear management and dear shareholders, humanity is currently causing the sixth mass extinction of species and the global climate system is at the brink of a catastrophical crisis. Its devastating impacts are already felt by millions of people all around the globe, yet, we are far from reaching the goals of the Paris Agreement. And Crédit Suisse plays a huge role in the continuing destruction of our environment. For ruthless investments in the amount of billions of dollar into companies that operate in extreme fossil fuels, Crédit Suisse alone has contributed more than twice as many

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Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you. We were all prepared as well, of course. Miss, you should also reflect the fact you mentioned that we have not directed our activities and financing certain activities have not come down since the Paris Accord, that's actually not correct. It's minus 21%, if I remember correctly from memory. Lara can you confirm that.

Lara J. Warner - Credit Suisse Group AG - Group Chief Risk Officer & Member of the Executive Board Yes.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board So that was just one of the several points. Other than that, I mean, we've heard your plea as we have heard several others with the same plea before. As I said before -- many times now, we take the issue extremely seriously, and it will certainly not be Crédit Suisse that will be at the origin of the problem going forward. That's for sure.

Mr. (inaudible) then Mr. (inaudible) from Wettingen.

Unidentified Shareholder Thank you, Mr. Rohner. Shareholders, ladies and gentlemen, members of the Executive Board and the Board of Directors, I would like to address 2 topics: One is the dividend policy and the share buyback program, and the second is fighting money laundering. Then I will talk about the performance of the past 3 years.

But first of all, something that is dear to my heart as a human being. No matter what you may think of somebody, personal attacks, along the lines that I've heard today are not acceptable. And I would like to speak -- now you're fighting against excessive salaries, but the personal attacks that you've waged against the dignity of persons, such as Mr. Thiam, now this is not acceptable. You spoke of Mr. (inaudible), of course, he is deemed to be innocent, and to compare this to Mr. Thiam's actions is not acceptable because it is simply not in the line of what we can accept in terms of dignity here.

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Well, you can be credible when you criticize if you recognize and appreciate positive things as well. And I understand and I share the views of a number of people who spoke here. Nevertheless, over the past few years, Crédit Suisse made progress. This is something that we simply have to accept and appreciate. We have to overcome difficulties of the past, the legacy, and we've heard that most of it has been done. But now there's a next leg in front of us. Another challenge that is the $10 billion worth of profit that Mr. Thiam has announced. And I do hope that the Executive Board will be successful in doing so. And I would like to thank all the employees of Crédit Suisse for their commitment, not just the Executive Board, not just the Board of Directors, all employees should be thanked for what they've done over the past few years.

Now the question is, the good work done, is it worth CHF 13 million? I think the response to this question must be subjective. Some of us may say $1 million is a scandal, others can accept $15 million if the achievement is a good one. Now personally, I feel everything that starts in the second -- with 2 digits is difficult to accept in society and difficult to explain. Two digits is too much. There are certainly excellent captains of industry in Switzerland and abroad who could work just as well as Mr. Thiam and his Executive Board and would be more than happy to accept half that salary, CHF 6 million per year, for example. That's CHF 125,000 a week. I'm not saying that there has been no achievement. But if you were looking for these people, you would find them. And if you would then let them compete against a number of members of the Executive Board, I would not be surprised if some of them would knock on Mr. Rohner's door and say, well, I am happy to reduce my salary and continue to work very energetically. But that's my personal opinion. I have one point, Mr. Rohner. However, I think that the members of the Executive Board of Crédit Suisse should focus fully on what they do for Crédit Suisse because they're well paid for it. So my suggestion is that in the labor contracts, you should stipulate that both mandates that are outside the group should not be accepted. Yesterday, I read in the press that Mr. Thiam used to be a member of the Board of 20th Century Fox, and for 6 meetings of the Board then, he earned $300,000. Well, it's okay for me. But I think, as a CEO of the group, he should really focus solely on his work as the CEO. And I don't think he actually needs the $300,000. He should rather focus on his own job.

So much on that. Now on the dividend and share price policy. I understand that shareholders want to see dividend payouts. But I also see that every franc paid out as a dividend is not available to finance growth. And there is a wonderful term in German, to create sustainable value added. Companies that have a large war chest, with hundreds of billions, such as Apple, they can afford that. But I think Crédit Suisse has a long way to go. You said it yourself, there is a lot to be done in Asia, and not just in Asia. And this growth will have to be financed. And I am a shareholder, and I would benefit by a higher dividend, but I still feel that rather than paying dividend, this money should be invested in growth. And the same holds true for the share buyback programs because if you buy back shares with your own resources, the resources will not be there to finance the growth that you would have to finance. And there's now a competition going beyond the UBS, the JPMorgans of this world, it's necessary to have this war chest. Just to mention it, today's competition has hundreds of millions of customers and war chest of hundreds of billions of dollars, Amazon, Alibaba, Apple, Google, Facebook, you name them. These players have entered the field of payment transactions. Very soon, they will be issuing mortgages. They will be retail bankers. And one day, they will also go into wealth management. These high-speed trains will have to be stopped, and I hope that you will take all the necessary measures to make sure that they don't overtake you.

Now the final point is on combating money laundering. Mr. Rohner, in September 2018, FINMA criticized Credit Suisse because of insufficient combating of money laundering in several cases over several countries between 2006 and 2014, I read. These cases are also reported in the annual report on pages 36 and 37. Back in 2015, I was informed Credit Suisse was asked to become active in these cases, but unfortunately, this has not really taken place.

Mr. Rohner, you are like a Swiss Army knife, you have so many functions. And the period of time we're talking about, you were member of the Executive Board, General Counsel, COO, a member of the risk committee, member of the government committee and the Chairman of the Board, of course. Throughout this period, I must tell you, but the FINMA is saying it you failed consistently to take effective and efficient measures to clarify these cases and take proactive actions. This is what FINMA says. Well, some Georgian oligarch may be perfectly happy with that, but I think it's a shame. The question is how does Credit Suisse respond to this? And I am reading this report, the new annual report twice, FINMA appreciated the number of proactive measures. And then I would like to see where FINMA said that because if you have been proactive, we, Credit Suisse and you, Mr. Rohner, sorry to be so blunt, would not have been slapped in the face by FINMA. So you praise yourself here, and this is not really in line with what has actually happened. But I must say you have a good sense of humor. You responded, the conduct financial combat committee was created, you've become the Chairman of it. Now honestly speaking, I don't understand you've been part of the problem for years, how can you be part of the solution?

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Mr. Rohner, may I quote you on Page 12 of the annual report? "The most important element of a successful client relationship is trust. All of our business is based on trust. Our clients trust us with their wealth, their assets, they trust us. But at the same time, we know," and I'm still quoting, "a lot of clients bank on the reputation of the bank just as much as on the performance." Now the question is how can we build reputation and trust if you are the Chair of this committee? Everyone can make mistakes, but sometimes you will have to step back and leave it to others to get rid of legacy issues.

Metaphorically speaking, and I'm comparing situations not persons, it would be just as crazy as if we would give the children and adult protection services of Switzerland under the tutelage of the Catholic Church. Well, I'm happy to conclude. I was briefer than the person who spoke before me. Just 2 suggestions, Mr. Rohner, if I may. Please step down as the Chair of this committee. There are excellent people in your organization who would make an excellent job of it and would certainly enhance the credibility of this committee. I think it's a good thing you've created the committee, but I think that would be a strong sign, a strong signal. And my second appeal to you is, please, this annual report is 498 pages long. I've been looking for apologies, pardon, regret. I didn't really find these words in connection with those issues that were raised by FINMA. You have the opportunity now to do so to ask for our forgiveness, for -- please apologize for the mistakes made for years. You would really show greatness. You would show that you are a decent person and that you respect the shareholders, and it would certainly be a honorable action. You are a honorable man, and I'm sure that you're going to use this opportunity. Thank you for attention. The floor is yours.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you, Mr. [Schreiber]. Before addressing the other points concerning your suggestion that the member of the Executive Board should not serve on external Boards of Directors. Now we do have disclosed in our labor contracts one such function is acceptable, and I think it's a good thing that bankers do not act in a void, in a vacuum, they should also be talking to other industries, so it's a good thing not a bad thing to be represented on other Boards. But of course, we have to make sure that they don't really spend too much time in these functions, but we've never had a problem where mandates ate up too much time of this person working for Credit Suisse.

On AML, money laundering is a multifaceted term, and it covers all the processes of identification and documentation of clients. Now I apply very high standards to myself ever since I have worked for Credit Suisse, since 2004 that is. And I was the one who introduced the first rules in this direction. And if I've made my mistakes -- my own mistakes, then I would like to apologize, not just here but also otherwise. And rest assured, I would not have taken the Chair of this committee and no regulator would have accepted me to be the chair if they hadn't been of the opinion that it would have been a good thing to create this committee that was my idea. And we discussed this closely with the regulators who were very pleased and wished me to take the chair of this committee. It's the only reason why I had accepted it, I have enough work otherwise. The message is important, that's the most important thing. And if I am directly responsible then, of course, I will also apologize. It is not my character to shy responsibility.

Then I called Mr. (inaudible). He's spoken already. So we've got Mr. [Roethlisberger] next and Mr. Ralph [Litty] from Mylan.

Unidentified Participant I am [Lawrence Roethlisberger] from (inaudible). Shareholders, ladies and gentlemen, you are the employer of our company Credit Suisse. You are the employers. So again, you are the employers. The employees to my left, the members of the Board of Directors, the Executive Board, a few people and the large part of Credit Suisse is not present here. They also worked hard, and they did an excellent job. My view is that employees have to be paid a decent salary, but all employees that cash in more than CHF 1 million have no moral. Therefore, I would like to ask all shareholders to either vote no or, at least, abstain when it comes to vote on compensation. Thank you very much.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you, Mr. [Roethlisberge]. Mr. [Ralph Litty] is next and then Mr. (inaudible).

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Unidentified Participant Ladies and gentlemen, first of all, I would like to address the compensation report. The compensation by the members of the Board of Directors and the management Board have to be rejected. Look at the levels of salaries. Total compensation of the Executive Board is up 17% compared to previous year to CHF 93.49 million. Total compensation of the CEO amounting to CHF 12.65 million is up 13% versus previous year. Dividend for shareholders is increasing by a minute 5% from CHF 0.25 to CHF 0.2625. Therefore, I submit the proposal on [3 2] payment from capital reserves. My proposal is that the dividend be increased by 16% from CHF 0.25 to CHF 0.29 and paid out accordingly. And I have a proposal on Item 5, amendment of the Articles of Association. A article will have to be introduced in the Articles of Association, dividend shall increase and decrease in the same percentage as the salaries of the Board of Directors and the Executive Board. Not to maximize the dividend, but first of all, it's a question of us cutting our costs. Thank you for your attention.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you, Mr. Litty. On your second motion on amendment of the Articles of Association, we cannot vote on this because it's not on the agenda. And on the first point, I'd like to comment when we discuss the dividend if your -- if our proposal is accepted, your proposal will become null and void. And if our motion is not carried, we will discuss whether your motion can be put to the vote. Then you spoke about the relationship or the relationship between the dividend increase and the salaries. We have a compensation policy at Credit Suisse. 50% of the net income should be paid out to the shareholders. This will happen through dividends and by share buyback programs that our capital accretive to the extent that we are still under the tangible book value of our shares. This is our policy because we feel it makes sense, because it gives us more flexibility. If we keep increasing the dividends from a low level, but the payout quarter [can't] be achieved. If we buy back shares, then there will be compensation of number of shares, and this will increase the book value. In a cyclical industry, such as the finance industry, this is probably the better method.

Then we have Mr. (inaudible) and Mr. [Nicholas Studler] from Urdorf.

Unidentified Shareholder Members of the Executive Board, dear co-shareholders, I'm not going to talk about politics. I will address figures that I found in the annual report. The long-term commitments in 2017 and 2018 were raised at horrendous interest rates, had to be raised at extremely high interest rates. They amount to 60% of the equity of CHF 27 billion. And they are payable with payable interests between 5% and 7%, raised between 2017 and 2018. My question is how much of it is authorized, is conditional risk capital. And I would like to also hear how this load can be reduced as quickly as possible. On the other side of the fence, we have the share buyback program that is praised by the Board of Directors to please the shareholders and the investment companies that have an important say here. I think we could waive the dividend buyback if the dividend were fixed at maybe CHF 0.26 or CHF 0.27. So my question or my proposal is that we delete the share buyback program. And please tell us about the risk capital and how and when it can be reduced? Thank you.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you, Mr. (inaudible). We are going to vote under the item concerning the buyback program. First, we will vote on the Board's proposal. If not, we will discuss whether we can vote on it. Then on the long-term credits, here our Chief Financial Officer is going to refer to that this is the so-called TLAC debt. He will talk about it. They also have a higher coupon. David, please.

David R. Mathers - Credit Suisse Group AG - CFO & Member of the Executive Board Thank you very much, Chairman. Mr. (inaudible), thank you for your question. I believe you're referring to both the TLAC debt as Urs said, but also to the AT1 instruments, also known as CoCos. I think just a few points I'd make. Firstly, under the Swiss regulatory environment, the too big to fail rules. All both (inaudible) and Switzerland are required to operate with a going concern capital ratio of at least 5.0% with effect from the 1st of January, 2020. And that means that we have to operate with 5% of our capital in the form of common equity and AT1 instruments. At this point, we just reported our earnings. We reported a leverage ratio of 5.2%. So we're actually in excess of the Swiss requirements for next year. The

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Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you. I hope that you've received an answer to your question. Now next is [Nicholas Studler] and (inaudible) from Weinheim, Germany.

Unidentified Shareholder I'll keep it brief, ladies and gentlemen. I have 2 hearts beating within my body. I'm not happy. But on the other hand, I want to say that it hurts to see what's happening. I wouldn't like to be in your shoes, Mr. Rohner, in spite of the bonus you've got because hearing all of this, and nevertheless, remaining calm as you are is a strong character trait, which you have. I don't have such broad shoulders as you, I don't think. Nevertheless, I feel very much affected by this, too. I came here today because I feel unhappy. I have been a director myself, and perhaps, I was really stupid, but I did away with my bonus when my company wasn't doing very well. Mr. Rohner, the issues with the share price, I don't really seem to have anything to do with anything. We lost a huge amount of shareholders last year, and nevertheless, you are receiving these bonuses. I was really stupid. I bought Credit Suisse shares for CHF 80 a share back then, and look at the price now. If I were the bank, I would do things differently. I'm really in favor of dealing with environmental issues, but I think we all have to be brave enough at some point to come out and say, mea culpa, let's do something about this. I don't think we can hold the leadership at Credit Suisse responsible for everything. We're all responsible for environmental issues, Credit Suisse among us. We don't always understand the background to what is done. Everybody is saying Credit Suisse is at fault here and at fault there. Credit Suisse belongs to me, too, it belongs to all of us, and it hurts me actually to hear what's been said. But if we feel unhappy, like I do, then we need to go and sell our Credit Suisse shares. Why do we hold the shares? Well, because we wish to earn some money. We all do, I think. I want to that's why I bought them in the first place. But I have ethical principles as well. I like to look closely at what I'm doing. And I think by way of process, I shall go home today and sell my shares.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Well, thank you very much, Mr. [Studler], for your passionate statement. There is a point you've made that I really agree with. We are all responsible for our own ecological footprint, not least of all, how do we get to the AGM, do we walk, I come by public transport, I've been doing so for years. We can all do our bit. I think we should all think about what else we can do to improve the situation. It's certainly not all up to the bank. We in the bank are doing what we believe to be sensible in order to affect the change that's required. We don't want to be personally attacked. We would like to enter into a debate about what is sensible and what we should do, and that's a debate that we are going to have more intensively as time goes on. But nevertheless, I think we all have to begin by examining our own principles and actions. Thank you. Well, if you really do go away and sell your shares, we regret that, but we do hope that you might buy some in the future and be happy again.

Yes, thank you. So Mr. [Dolman] is next.

Unidentified Participant Ladies and gentlemen, I am [Elf Dolman]. I come from Weinheim, near Heidelberg. I've got a couple of points that I want to raise. First of all, let me say I think it's great that you have restructured and reorganized yourselves and that your resolution unit was used to take all the problematic

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©2019 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. APRIL 26, 2019 / 8:30AM, CSGN.VX - Credit Suisse Group AG Annual Shareholders Meeting business out of the bank. Nevertheless, Mr. Rohner has been here since 2004, and is perhaps at least partly responsible for the issues that we have had, but I'll come back to that in a moment. We've seen some nice figures about new net money 5%. And so when we look more closely, we are still not doing very well against the competition, increase in earnings over the last few years, so we've certainly made an improvement vis-a-vis 2016. But in 2016, we paid a massive fine, a fine that we should never have had to pay. If you take that out, actually, then I don't see that the bank has made any huge progress. The restructuring and the removal of the toxic assets and so on has certainly made a difference, but I don't think we've seen a huge change. Now to remuneration, are these enormous bonuses really justified? I think over the last few years or even the last couple of decades, we've lost sight of the fact that a bonus should be that. It should be a bonus and extra payment of something that you did where you really went the extra mile. Now I think it's a good thing that directors and members of the executive team have to hold a certain number of shares, but for me that used to mean that you would have to buy those shares out of your own money, whereas, in fact, here at Credit Suisse, you get these shares awarded to you as part of your bonus program. So it's not really that you've put your hand in your own pocket and helped the other shareholders to go through difficult times. Wouldn't it be a positive sign if we could really see you putting your hands in your pockets and actually buying shares rather than waiting to be awarded them? Now of course, Mr. Thiam wouldn't be able to buy all the shares you ought to hold in a single year, but I think he ought to be able to do that on the basis of the salaries that he's received over the years. Now to come on to dividends. We're going up from CHF 0.25 to CHF 0.2625. So I wonder whether that's really necessary why don't we just stick with the CHF 0.25. I mean the difference doesn't really mean much. Are you doing that simply so that you can say that you've continued to increase dividends year-on-year? I mean either you should put the dividend adopt properly, put it up to CHF 0.30 or CHF 0.40 something like that or else leave it at CHF 0.25 because otherwise if you increase it just so slightly, does that mean that you are not confident that we're going to grow? Are you not as confident as you've let us to believe that you are? Are things going to remain flat? Where you're, in fact, very flat anyway and not doing very well in spite of the -- or not just because of the fines that we had to pay. You talked about stress tests in banks in crisis situations. Well, if we don't stand up to stress tests, and of course, we have to do something about that, but that should go without saying for any bank I think. Now you've talked about our performance being better than those of German banks in terms of our book value, but the American banks, Citigroups and others are doing better. You can get those figures from the internet. So other banks are performing much more positively than we are. They are expecting a great deal more profit in the future than we are, so I'm afraid what you've said doesn't really satisfy me in terms of what I expect to see from the executive team. I don't want to play down what Mr. Thiam has done in terms of the restructuring, but I think more needs to be done. Mr. Rohner has been here since 2002 (sic) [2004], and he's had a lot to do with the fortunes of our bank over that time. When it comes to remuneration, I am afraid I -- compensation I can only vote no, given the current situation. In Germany, we literally say the fish stinks from the head. Things are rotten from the core, and I believe that's what we have here. We need things to be right at the top otherwise they won't be right all the way down. And until we see greater proportionality in your bonus payments, then I don't think you are going to be able to pass things properly down the line to your employees and prevent such issues as a rising again, and you've -- as you've had in Mozambique. So you need to behave in a more responsible and sensible manner.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you. Thank you very much for your suggestions. We don't have anybody else wishing to take the floor, and so I will close the discussion on this agenda item. And before we proceed to the vote, I would ask Ms. Belzer to explain briefly how to use your televoter.

Joan E. Belzer - Credit Suisse Group AG - Secretary Yes, thank you, ladies and gentlemen. We're using the same type of televoters we have in previous years. Every time we announce a new voter or election, your touchscreen will automatically be activated. You can activate it yourself as well at any time simply by touching the screen or by pressing the red button, which you'll find on the side of the device. There is a symbol [Foreign Language], which you can use to change the language. Then you have a button called my vote where you can check to see how you voted on previous agenda items. The symbol info will show you how many share votes you represent. During the voting time, you will see 3 fields on the bottom of your screen, a green one for yes, a red one for no, and an amber one for abstention. The field that you select will be ticked when you select it. And while the vote is still open, you can correct your vote simply by pressing a different field. For each vote, you will normally have 10 seconds in order to cast your votes. Once the voting time is up, you will only see the field that you selected lit up. If you have any problems with your device, then please take it to one of the help desks that you'll find at the side of the room. Thank you.

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Urs Rohner - Credit Suisse Group AG - Chairman of the Board We proceed then to the first vote, the consultative vote on the 2018 compensation report, which is agenda item 1.1. The Board of Directors recommends that the 2018 compensation report be accepted in the consultative vote. If you wish to approve that motion, then please press the green button, otherwise you can vote no or you can abstain. Voting time runs from now.

(Voting)

Time is up. It shouldn't take too long till you get the results.

Joan E. Belzer - Credit Suisse Group AG - Secretary We have 1,400,588,216 votes, which is 82.14% of the votes in favor of the compensation report. 16.27% of the votes were against, and 1.59% were abstentions.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you. Then I note that you have approved the consult -- in a consultative vote, you've approved the 2018 compensation report. Thank you very much. I think that's a slightly better result, even than last year if I remember correctly. Of course, we always work hard to ensure that we get to ever higher levels of approval from you that is our objective that shareholders should approve of what we do, and we should try to continue to improve things.

Moving on then to agenda item 1.2, approval of the 2018 Annual Report, the parent company's 2018 financial statements and the group's 2018 consolidated financial statements. This is agenda item 1.2 that Board of Directors proposed. The 2018 annual report, parent company's 2018 financial statements and the group's 2018 consolidated financial statements be approved. This goes along with the recommendations of KPMG, our auditors, who have audited the reports. If you are in favor, please press the green or yes button. Otherwise you can vote against or abstain. And the ballot is open now.

(Voting)

We shall wait the results. Ms. Belzer will read the results to us.

Joan E. Belzer - Credit Suisse Group AG - Secretary We have 98.22% of the votes in favor of the motion of the Board, 1.49% of the votes are against, and 0.29% were abstentions.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you. I therefore note that you have approved the annual report, the financial statements and the consolidated financial statements for 2018.

Thank you. We now proceed to agenda item 2, discharge of the members of the Board of Directors and the Executive Board. Under this agenda item, we propose that the members of the Board of Directors and Executive Board be granted discharge for the 2018 financial year. This motion concerns all members of the Board during 2018, including those who joined or left the Board during that time. We have Mr. [Martin Inglin] from (inaudible) wishing to take the floor on this agenda item.

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Unidentified Participant Members of the Board, shareholders, ladies and gentlemen and representatives of pension funds and foundations. For many years now, I have sat here and listened to the Board telling us how well Credit Suisse is doing out there on the market and how well-placed it is in its operational businesses. We heard a lot about this today as well, but we've heard a lot that runs counter to that. There's quite a lot of negative news. I won't list it all out because it's been thoroughly aired in the press already. The financial sector seems to have a different view of Credit Suisse as well. And I think the very low share price, and it's been low for a while, there's further evidence of that. Allow me to tell you my view of this today. My analysis shows me that you, members of the Board and the management team, have taken action far too late in order to prevent my assets in Credit Suisse from halving in value, and I don't really have any hope that things are going to improve in the coming years. Secondly, it seems to me that the yield saturation of Credit Suisse is really rather miserable. I don't know how good the management even is at maths. Thirdly, I, like many other small shareholders here in the room, believe that this type of achievement should not actually receive any compensation at all. And you ought to not take your compensation in the future at least until the faithful shareholders here in the room are able to enjoy a decent Credit Suisse share price again, you have to do your bit here. In order to ensure that Credit Suisse's results finally improve, you expect after all that your employees should attain their objectives, don't you? As far as I can see, all the members of the Board and the executive team have failed to meet your objectives in the last few years. You've acted too late, as I already said. The share price proves that -- demonstrates that too versus shareholders because it's fallen, and it's still falling. And so I call upon you, ladies and gentlemen, shareholders and the representatives with the pension funds. Ethos has already said their part. I take them out of what I'm saying now, but I call upon the rest of you to refuse to grant discharge to the Board of Directors to say to vote no, or at least, to abstain. And when it comes to the votes on compensation, I insist that you vote no on all of them. I've told you why you should do that, and you should do that until the share price reaches a level that suggests that we should go on such a degree of compensation.

And finally, when it comes to the reelection of the members of the Board, I also demand that you vote no because this is the only way that we can show the Board that we don't approve of the way that they are acting. It's my opinion that pension funds should give a signal today because after all you do represent the interests of companies and the insured equally. So thank you for listening to me today, and I thank you in advance for your support. When we proceed to the various votes that I have talked about, I'm confident that if you support my proposals, we will finally see some action from the Board of Directors.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Well, thank you very much, Mr. [Inglin], for your statement. I can close the discussion then on agenda item 2. And we shall vote in one round on the granting of discharge in accordance with Article 695. This was [kind of] obligations anybody who has been involved in the management of Credit Suisse Group AG in the last year are not allowed to vote on this agenda item. If you wish then to grant discharge to members of the Board of Directors and Executive Board for the year 2018, then please vote yes. Otherwise you can vote no or you can abstain. And the ballot is open.

(Voting)

The ballot is closed.

Joan E. Belzer - Credit Suisse Group AG - Secretary We have 87.92% of the votes in favor of the motion of the Board. 11.45% of the votes are against, and 0.63% were abstentions.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you. I therefore note that you have granted discharge to the members of the Board of Directors and Executive Board for 2018, and I thank you in the name of the Board and the executives -- Board of Directors and the Executive Board for your confidence in us.

Agenda item 3 relates to the appropriation of returned earnings and distribution payable to shareholders. Now there will be 2 separate steps to the vote here. You can see the motions on the agenda under items 3.1 and 3.2. I will introduce them together since they're closely related. Rather

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Mr. (inaudible), do you wish to say something else about this point? Sorry, I had not seen your name on the speakers' list for this agenda item.

Unidentified Participant Shareholders, members of the Board of Directors, I already talked about risk capital being used in order to fulfill the AT1 conditions. I think equity is better kept in the coffers of the bank rather than capital, which has to be acquired by paying high interest rates. Every cent that we can save should be saved and used to boost the bank's equity rather than being used for the repurchase of shares. It should also be used to reduce our risk capital, and I think this otherwise is just a silly trick, which was invented in order to save the banks after the financial crisis.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you very much, sir. Well, I have nobody else wishing to speak on this point. So I will close the discussion and proceed to the vote. As I say, we will start by voting on agenda item 3.1, the resolution on the appropriation of retained earnings. And then we'll move on to point 3.2 on the resolution on the distribution payable out of capital contribution reserves. The Board of Directors proposes under agenda item 3.1 that the retained earnings, CHF 5.109 billion, be carried forward and -- which comprises retained earnings of CHF 5.160 billion carried forward from the previous year, and then net loss for 2018 of CHF 51 million carried forward to the new account. I open the ballot now. Please vote accordingly.

(Voting)

Joan E. Belzer - Credit Suisse Group AG - Secretary We have 99.38% of the votes in favor of the motion of the Board, 0.46% votes are against, and 0.16% were abstentions.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you. You have, therefore, approved the motion of the Board on the appropriation for retained earnings. Let's move on to agenda item 3.2. The Board of Directors proposes a cash distribution of CHF 0.2625 per registered share payable out of capital contribution reserves. Company will not make such distribution with respect to company shares that it holds itself at the time of distribution. If you wish to vote in favor, please press the yes button. Otherwise you can vote against, or you can abstain. The ballot is open.

(Voting)

The ballot is closed.

Joan E. Belzer - Credit Suisse Group AG - Secretary We have 99.41% of the votes in favor of the motion of the Board of Directors. 0.45% are votes against, and 0.14% are abstentions.

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Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you, I therefore note that you have approved the motion of the Board for the cash dividend as a capital contribution reserves. Thank you very much for that.

This brings us on to item 4 reduction and extension of authorized capital. As you've already seen from the invitation, the motion under item 4 includes reduction of authorized capital on the one hand, and on the other hand, extension of authorized capital by 2 years. The proposed authorized capital in the amount of a maximum of CHF 4.12 million is aimed at preserving strategic and financial flexibility in the further development of business activities and Credit Suisse's corporate portfolio. Reduction by 1/3 as opposed to the currently authorized capital is possible because the proposed extension of authorized capital, it's not including registered shares, used for the issuance of shareholders in relation with a stock dividend or a scrip dividend. As you know, since last year's Annual General Meeting, we have used cash dividend instead of a scrip dividend. The Board of Directors can exclude shareholders subscription right, and authorization is limited to 2 years and will expire on April 26, 2021, pursuant to Swiss law. No one has signed up to take the floor on this item on the agenda. So let's move straight on to the vote on item 4. The new and old items in the amendment are printed, and an invitation published in the Swiss commercial gazette. I will not read out the new wording of Article 27 of our articles. As I announced already, let me point out, now based on Article 704 of the Swiss code of obligation, the resolution to be taken requires a 2/3 majority of the votes represented today and the absolute majority of par values. The Board of Directors proposes to you to extend the authorized capital pursuant to Article 27 of the articles in the amount of up to CHF 4.12 million until the 26th of April, 2021, and to amend Article 27 of the Articles of Association pursuant to the text in the invitation as being shown on screen. For those of you who wish to go along with the Board's proposal, press the yes field on the televoting system. If not, press the no or abstention fields. The ballot is on.

(Voting)

Joan E. Belzer - Credit Suisse Group AG - Secretary Share of yes votes is 92.23%, and the share of no votes is 7.52%, and 0.25% of the vote has abstained.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board So you have approved the Board's proposal for reduction and extension of authorized capital and adjustment of Article 27 of the Articles of Association at the required 2/3 majority of the shares represented today. Thank you very much.

Under Item 5 of the agenda today, we have further adjustments, amendments to the articles. We have 2 subitems, 5.1 and 5.2. You will find all amendments -- all details about the amendments including the text to be changed in your invitation, and you'll see them on the screen behind me. So I will forego reading the text out to you.

Under 5.1, we have a change of -- an amendment of Article 5 -- 8, paragraph 5, the term of annual report to be replaced by the term of management report. This is an adjustment to the current regulation in Article 698 of the Swiss Code of Obligations. There's been a change of law.

Next we're proposing to delete 80 -- 28g about contributions in kind. This is no longer required, so it ought to be deleted.

And finally, we have Article 30, which has also become void, and this article can now be deleted.

So let me move straight to the vote. First, the vote on 5.1. The Board of Directors proposes that Article 5, section -- Article 8 Section 5 of the Articles of Association be amended, and that Article 28g and Article 30 of the Articles of Association be deleted pursuant to the invitation and the projection on the screen. Please pick the button of your choice, yes, no or abstention. The ballot is open.

(Voting)

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Joan E. Belzer - Credit Suisse Group AG - Secretary 99.23% have approved the Board's proposal versus 0.46% who said no and 0.31% who have abstained.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board I herewith note that the AGM's approved the Board's motion under 5.2. As the final amendment to our articles, we are now moving under Item 5.2 to a purely formal -- another purely formal adjustment Article 10 Paragraph 6 is to refer to the Article 120 of the Financial Market Infrastructure law. This is a new law as well. This amendment requires only an absolute majority of the votes represented today, pursuant to Article 13 Paragraph 1 of our articles. Let's turn to the vote straightaway. The Board proposes that Article 10 paragraph 6 of the Articles of Association be amended, pursuant to the wording in the invitation and to being shown on screen. Those who want to go along with the Board's proposal, press the yes field. If not, press the no field or abstain from voting.

(Voting)

Joan E. Belzer - Credit Suisse Group AG - Secretary 99.22% of the vote have approved the Board's proposal versus 0.44% who've been against and 0.34% who've abstained.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board So you have approved the Board's proposal under 5.2. Thank you very much.

Let me now ask Notary Gossauer. The general meeting has approved under Items 4, 5.1 and 5.2, the amendments of the articles at the quorum required. Can you keep the official record of those resolutions?

Alexander Gossauer Yes, Mr. Rohner. I can do that. Everything's fine.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you, Mr. Gossauer, Mr. Notary, and thank you for your long-standing loyalty in this capacity. We're very happy to have you with us.

Moving on to Item 6, elections of the members of the Board of Directors and the Compensation Committee.

Before moving on to the proposed elections and reelections, let me honor the merits of 2 members of the Boards, Andreas Koopmann and Alexandre Zeller, who do not stand for reelection or have stepped down from the Board of Directors. In the course [of the year], Mr. Koopmann at the current general meeting is looking back on 10 years as a member of the Board of Directors of Credit Suisse Group AG. He's been a member of our Board of Directors since 2009. From 2009 to 2018, for the majority of his stent on the Board, he was a member of the Risk Committee from 2013. Until today, he was a member of the Compensation Committee. Mr. Koopmann, however, has worked for Crédit Suisse longer than the 10 years he was at the Board level. He had important capacities from 1995 to 1999. He was a member of the Board of Directors of SKA, Crédit Suisse First Boston. And from 1999, he was a member of the Advisory Board until it was resolved in 2007. He also played a significant role when our Swiss subsidiary, Credit Suisse (Schweiz) AG was established in 2015 to 2017 he was a member of the Board of Directors, and from 2016 to 2017 a member of the Audit and Risk Committee.

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As I mentioned at the outset, Mr. Koopmann is going to continue to be available to us as a member of the Board of Crédit Suisse (Schweiz) AG. Esteemed shareholders, you can certainly imagine that between Mr. Koopmann and our organization, there's been long-standing relations and great relations, not only because he knows the Swiss industry to an outstanding extent, he has always provided a lot of impetus to developing the strategy of Crédit Suisse in Switzerland. And we always appreciated his international expertise on the Board of Directors.

As you would have read from the media release when we published the 2018 annual results, and as you would have read from the invitation to the Annual General Meeting, there's another member of the Board of Directors who will not stand for reelection, Mr. Alexandre Zeller. He stepped down from his functions with Crédit Suisse Group AG and Crédit Suisse (Schweiz) AG at the end of February 2019 to transfer to Lombard Odier as a Managing Partner. Mr. Zeller was elected at the AGM in 2017 as a member of the Board of Directors. And until he stepped down in February 2019, he was a member of the Compensation Committee and the Governance and Nominations Committee and, following 2018, a member of the Innovations Technology Committee. Mr. Zeller played an important role for Crédit Suisse as a whole in particular as the Chairman of the Board of our Swiss subsidiary, Crédit Suisse (Schweiz) AG, from 2016 until he retired in February 2019.

Mr. Zeller has also long-standing relations with Credit Suisse even though it was interrupted by some other activities in between. But in 1987, he worked with Crédit Suisse. In 1999, he was appointed member of the executive Board of Crédit Suisse Private Banking. And 2002, he was appointed CEO of Private Banking Switzerland. He is a great expert of Swiss business, which, as you will have noticed, competitors have realized and submitted a great proposal to him.

On behalf of the Board of Directors and the Executive Board, I would like to thank Mr. Koopmann and Mr. Zeller for their important contributions and their great commitment on the Boards and the Board committees, in particular in the phase of restructuring in our bank. I personally, and my colleagues on the Board will agree, appreciate and will miss cooperation with the 2 gentlemen.

I wish Mr. Koopmann and Mr. Zeller, also and you, on behalf dear shareholders, best of health and all the rest in general.

First of all, we now are going to let elect myself as a member and Chairman of the Board of Directors. And in line with good corporate governance practice, I have asked Severin Schwan as -- in his capacity as Vice Chairman and lead independent Director, to replace me in presenting this proposal to you.

Can I ask Severin Schwan to come up on the podium?

Severin Schwan - Credit Suisse Group AG - Vice Chair & Lead Independent Director Dear shareholders, Mr. Chairman, let me present reelection of our Chairman, Mr. Rohner, to you. This year, again, I will be pleased to refer to the highlights in the career of our Chairman with Crédit Suisse, Urs Rohner, since the Annual General Meeting 2011 has been a full-time Chairman of the Board of Directors and Chairman of the Governance and Nominations Committee, which he joined in 2009.

Since 2015, he's been a member also of the Innovation and Technology Committee. Furthermore, since the beginning of this year, he's been chairing the newly created Conduct and Financial Crime Control Committee. Urs Rohner was a full-time Vice Chairman of the Board and member of the Risk Committee between 2009 and 2011. From 2004 to 2009, he was General Counsel and, from 2006 to 2009, Chief Operating Officer. In these capacities, he was also a member of Crédit Suisse Group's Executive Board. Mr. Rohner is considered to be independent based on the group's independence criteria.

No one has signed up to speak on reelection of Mr. Rohner. This is what I'm seeing from the teleprompter. So let's move on to the vote on reelection of Mr. Rohner as both a member and the Chairman of the Board of Directors.

Those who wish to go along with the Board's proposal for reelection of Mr. Urs Rohner for the term of office of 1 year until completion of the next Annual General Meeting as a member and Chairman of the Board of Directors, please press the yes field. If not, press the no field or press abstention. The ballot is open.

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(Voting)

The ballot is closed. Waiting for the results. Bear with me for a few moments. And I would like to ask Ms. Belzer to present the results to the audience.

Joan E. Belzer - Credit Suisse Group AG - Secretary 93.15% of yes votes approving the Board's motion versus 6.47% of no votes and 0.38% of abstention.

Severin Schwan - Credit Suisse Group AG - Vice Chair & Lead Independent Director I herewith note that you have reelected Mr. Urs Rohner for a term of office of 1 year until completion of next year's AGM as a member and Chairman of the Board of Directors.

Congratulations to our Chairman and on behalf of our colleagues as well on reelection.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Well, thank you very much. Thank you for your trust, dear shareholders. I know that at general meetings, people raise criticism, but it's also nice to see that at the end of the day, when it comes to reelections, the outcome may be different. And I'm very pleased. I can only say, from my personal point of view, that we will do everything on the Board and in the Executive Board to drive Crédit Suisse ahead in the near future.

The further members of the Board of Directors up for reelection will now be presented to you in alphabetical order and will be shown on camera. Then we will go through reelections individually, but in one go, as we did last year.

The business milestones for the candidates can be found in the 2018 Annual Report and in more detail on our website. And they've also been outlined in the invitation, so I will not present the CVs of all the candidates. All members of the Board of Directors are considered to be independent based on the group's independence criteria.

First of all, we have Mrs. Iris Bohnet standing for reelection. Iris Bohnet has been a member of the Board of Directors since 2012.

Then Mr. Andreas Gottschling. He was elected as a member of the Board of Directors in 2017. Mr. Alexander Gut has been a member of the Board of Directors since 2016. Mr. Michael Klein was elected as a member of the Board of Directors last year. Mrs. Seraina Macia was elected as a member of the Board of Directors in 2015. Mr. Kai Nargolwala has been a member of the Board of Directors since 2013. Mrs. Ana Paula Pessoa was elected last year as a member of the Board of Directors. Mr. Joaquin Jack Ribeiro has been a member of the Board of Directors since 2016. Mr. Severin Schwan, finally, has been a member of the Board of Directors since 2014, and the Board's Vice Chairman and lead Independent Director since 2017. And finally, we also have Mr. John Tiner up for reelection. He's been a member of the Board of Directors since 2009. No one has signed up to speak on this item on the agenda, so let's proceed straight to the election.

Reelection of these 10 candidates will be done in one go. Mrs. Belzer will briefly explain to you how it will work and how to operate the televoting system just to be on the safe side.

Joan E. Belzer - Credit Suisse Group AG - Secretary Ladies and gentlemen, using the televoter, we can also carry out several elections individually, but in one go. Now we are going to use this procedure for reelections and elections of Board members and the following elections of members of the Compensation Committee.

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On the touch screen, the candidates to be elected will be shown on one list. Below the name of the candidates, you will find the election fields, yes, no and abstention. Please take your pick for each and every candidate. Not all the names of the candidates can be shown on one page. You will have to use the arrow at the bottom right to get to the next page or use the arrow at the bottom left to go back to the previous page.

There's a maximum of 3 candidates for which there's space on one page. This procedure will require several interventions from you, so you will have more time than the usual 10 seconds to cast your votes.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board So the Board proposes to reelect or elect all 10 candidates for a period of office of 1 year until completion of the next ordinary general meeting as members of the Board of Directors.

At the end of the procedure, we will present to you the results of all reelections. Those of you who wish to go along with the Board's proposal, press the yes fields. If not, press no or abstention. Please cast your votes now. You will have 40 seconds time this time around.

(Voting)

Joan E. Belzer - Credit Suisse Group AG - Secretary We will present all the results in one go, and we'll take maybe half a minute or a minute's time. Can I ask you to bear with me until the results are available?

Mrs. Iris Bohnet got 98.75% of the vote; Mr. Andreas Gottschling, 99.03%. Mr. Alexander Gut got 98.91%. Mrs. Seraina Macia -- oh, I'm sorry, Mr. Michael Klein got 98.86% of the vote. Mrs. Seraina Macia got 99.06% of the vote. Mr. Kai Nargolwala got 98.36% of the vote; Mrs. Ana Paula Pessoa, 98.61%. Mr. Joaquin Ribeiro got 99.04%; Mr. Severin Schwan, 98.13%. And finally, Mr. John Tiner, he got 98.28% of the vote.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board I herewith note that you have reelected all candidates as members of the Board of Directors for a term of office of 1 year until completion of the next Annual General Meeting, and I congratulate my colleagues on -- very cordially on reelection.

Thank you very much, dear shareholders, for placing the trust in us by reelecting us. All reelected candidates have confirmed to me that they will accept reelection. For the sake of good order, let me mention that the complete results with all of the figures will also be uploaded to our website after the AGM.

With this, we should move to 6.1.12. It's my pleasure now to propose 2 candidates under the Items 6.1.12 and 13 for cooptation to the Board, Christian Gellerstad and Shan Li. Let me present these 2 personalities to you. The detailed resumes of the 2 persons were sent to you with the invitation.

Mr. Gellerstad was born in 1968. He is a Swiss and Swedish national. He looks back on a 20-year successful career with Pictet Group. He is a recognized asset management expert, a lot of experience in Swiss private banking. He was CEO of Pictet Wealth Management. He's a nonexecutive member of the Board of a number of subsidiaries of the Pictet Group. If Mr. Gellerstad gets elected, he will retire from these functions.

Of course, he began his career with Pictet as a Financial Analyst and Petroleum Manager before becoming deputy CEO and Senior Vice President of Pictet Bank & Trust, and then he moved up the career ladder as a CEO and Managing Director of Banque Pictet & Cie in Europe. He's also a independent member of the bodies of 2 family-based industry companies in France. He has also a Master Degree of the Business Management and Economics of University of St. Gallen and certified International Investment Analyst and certified Portfolio Manager and Financial Analyst.

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Now second candidate is Mr. Shan Li. Mr. Shan Li was born in 1963, and he's a Chinese national. He is a economist and an investment expert. In the 2 past decades, he's been in various management functions of international financial institutes in the U.S., Europe and Asia. Currently, he is CEO of the Silk Road Finance Corporation in Hong Kong and Chairman and CEO of the Shanghai-based investment company, Chinastone Capital Management. He's also a founding partner of the private investment company, San Shan Capital Partners in Hong Kong.

He has a long and successful career. He started with Crédit Suisse First Boston, followed by a number of management roles with Goldman Sachs. Then he worked for China Development Bank and was a Head of China Investment Banking with Lehman Brothers. Shan Li has a Bachelor of Science in Management Information Systems of Tsinghua University in Beijing, as well a Master in Economics of the University of California in Davis, and he has a PhD in Economics of the Massachusetts Institute of Technology in Cambridge.

It's my pleasure to be able to propose these 2 eminent persons, Mr. Gellerstad and Mr. Li, to be elected to the Board. As you can see from the biographies, they are going to complement the Board with their expertise and know-how in important areas for Crédit Suisse, and certainly give important input for our company as a whole for its further development. According to the group's independence standards, they are deemed to be independent.

So let's move right to the election. Now we're going to use the televoter again individual elections but in one go. The Board of Directors propose that Mr. Gellerstad and Mr. Li be elected as a member of the Board. Please vote now. You have 15 seconds.

(Voting)

The results will be available shortly.

Joan E. Belzer - Credit Suisse Group AG - Secretary Yes votes for Mr. Christian Gellerstad, 99.03%; and Mr. Shan Li, 99.01%.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board I thus note that Mr. Gellerstad, Mr. Li have been elected for a term of office until the completion of the next AGM as new members of the Board of Directors. Both persons have declared that they will accept their election.

On behalf of the Board of Directors, I'd like to congratulate Mr. Gellerstad and Mr. Li for having been elected as new members of the Board. I'm looking forward to cooperating with you, and welcome to the Board of Directors working with you on the Board of Credit Suisse.

Under 6.2, we are now going to reelect the members of the Compensation Committee. We propose that Mrs. Iris Bohnet and Kai Nargolwala be reelected for a term until the end of the next Annual General Meeting.

We also propose that Mr. Christian Gellerstad and Mr. Michael Klein be elected for a term of office until the end of the next Annual General Meeting, and they would be new members of the Compensation Committee. The candidates were presented to you under Item 6.1 already. Mrs. Bohnet has been a member of the committee since 2012. Mr. Nargolwala was elected by you in 2014, and he's been a Chairman of the committee since 2017.

Mr. Gellerstad has just been co-opted to the Board, and Mr. Klein has been a member of the Board since last year.

Nobody wishes to take the floor. Thus, we can proceed right to the election or reelection to the Compensation Committee. According to Swiss legislation, we have to carry out this election individually again but in one go. We propose that Iris Bohnet, Kai Nargolwala be reelected and Christian Gellerstad and Michael Klein be elected as members of the Compensation Committee for term until the end of the next Annual General Meeting.

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Please vote now. You've got 15 seconds.

(Voting)

Joan E. Belzer - Credit Suisse Group AG - Secretary These are the results. Yes votes as follows: Iris Bohnet, 96.03%; Kai Nargolwala, 95.72%; Christian Gellerstad, 98.67%; and Michael Klein, 98.67%.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board You've approved the Board's proposal of the election of Mrs. Bohnet, Mr. Kai Nargolwala and Mr. Gellerstad and Mr. Michael Klein until the next Annual General Meeting. The persons just elected have announced that they will accept the election. Congratulations to you, and thank you for accepting this function.

Our next item is Item 7, approval of the compensation of the Board of Directors and the Executive Board. According to the legislation and the Articles of Association, the AGM has to vote annually about the overall compensation of the Board of Directors and the Executive Board. All additional information was -- can be found in the shareholders information on compensation of the Board of Directors and the Executive Board. You've been sent this in a special brochure.

The first sub-item is 7.1, is the compensation of the Board of Directors. Mr. Rolf Lüthi from Meilen has asked for the floor again.

Mr. Lüthi, the floor is yours.

Rolf Lüthi Crédit Suisse compares itself with the largest players in the industry on 287, the foreign banks I mentioned, Bank of America, Barclays, Citigroup, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley and UBS.

But today, you've shown to different peer groups that you are outperforming with your results. Go back to the comparisons. According to the annual report, the Bank of America in 2018 had a profit of $28.1 billion and this year had a salary of $22,765,365.

Barclays had a annual profit of some $22.85 billion. JPMorgan in 2018 generated a profit of $32.5 billion, and Jamie Dimon received a salary of $31 million in his dual role as the Chairman of the Board and as CEO. Jamie Dimon thus will get for $1 billion of profit, $935,846. That is his salary.

The Chairman of the Board of the Crédit Suisse Group is worth CHF 4,700,000; and the CEO, CHF 12.65 million. So if you add that up, it's CHF 17.37 million. Related to the key ratio of CHF 953,864 salaries per (inaudible) Per CHF 1 billion of profit, the Chairman of the Board and the CEO of Crédit Suisse would have to accept salaries of just CHF 1,930,584 related to the profit generated by Crédit Suisse amounting to [CHF 2,000,024,000].

Well, that is the way Crédit Suisse looks compared to the largest and best peers. Now I've written my manuscript in the past few weeks, and I read the note (inaudible) on the train coming here, and that's the title. Subtitle is, how can you justify salaries worth millions and offer the Swiss big banks with the companies becoming smaller? And I quote from the article, "How can we justify that the CEOs of UBS and Credit Suisse earn a 2-digit-million size although the banks are shrinking and the businesses have become less complex and entail fewer risks for management?" And the article also asked the question why big banks of Crédit Suisse is -- compare itself with the best. And you see a diagram here about the salaries of the CEOs and of the members of the Board. And you see the curve going down. That is the share price for our shareholders.

Under Item 7, I move that all compensation proposals for the Board of Directors and the Executive Board to be rejected. Mr. Rohner, I also move that the number of votes will be disclosed, so there can be anonymous voting just like in politics in Switzerland.

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With this, the Board of Directors and the Compensation Committee can get informed what the shareholders present feel about this matter. If you're going to say it's not possible to assess this or evaluate this, this is an excuse that you cannot come up with at the next AGM.

Thank you very much for your kind attention.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board Thank you, Mr. Lüthi. Thank you for your comments. Of course, we will organize the votes according to the numbers of shares and not per capita. This is not a public voting, this is an AGM. And then this article that you quote, there was something that was lacking, the pretax profit and the salary of the CEO. If they would have looked at their own CEO, their relationship or their ratio would have been 10x higher than at the Crédit Suisse. But of course, no (inaudible) [item] will not write that.

Now since there's nobody else wishing to (inaudible) , we propose improving the maximum amount of compensation for the Board of Directors of CHF 12 million for the period from 2019 Annual General Meeting to the 2020 Annual General Meeting. Please vote now.

(Voting)

If you wish to approve, yes; for a rejection, no; or abstention, the abstention field.

(Voting)

Joan E. Belzer - Credit Suisse Group AG - Secretary 86.76% yes votes, 13% no votes and the abstention is 0.24%.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board I thus note that you've approved the Board's proposal on the compensation of the Board of Directors. Thank you very much for this. Then approval of the compensation of the Executive Board, we will have 3 sub-votes but in one go.

7.2.1 is first. It's about short-term variable incentive compensation amounting to CHF 30.6 million. These are the short-term variable incentive compensations, STI, for the 2018 financial year. Then in 7.2.2, we propose approving the maximum amount of CHF 31 million comprising the fixed compensation of the Executive Board for the period from this AGM to the 2020 Annual General Meeting.

And finally, 7.2.3, the Board proposes approving the aggregate amount of CHF 30.2 million comprising the long-term variable incentive compensation for the Executive Board for the 2019 financial year. The total amount of LTI entitledness will be based on the market value at the time of allocation other than in the past few years, where we had a basis of maximum value, is to make sure that this is in line with the disclosure in the Compensation Report.

We're going to vote in one go now. The Board proposes under 7.2.1 that the total amount of CHF 30.6 million be approved comprising the short-term variable incentive compensation. That is 7.2.1.

Then 7.2.2, here we propose approving the maximum amount of CHF 31 million comprising the fixed compensation for the Executive Board for the period from the 2019 Annual General Meeting to the 2020 AGM.

And finally, on the 7.2.3, we propose approving the aggregate amount of CHF 30.2 million comprising the long-term variable incentive compensation for the Executive Board for the 2019 financial year. The overall amount is based on fair value at grant.

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If you wish to approve these 2 (sic) [3] proposals, please vote with yes. If not, vote no. Or if you wish to abstain, please press the abstain button. You've got 15 seconds to vote.

(Voting)

This closes the ballot or the vote.

Joan E. Belzer - Credit Suisse Group AG - Secretary These are the following yes votes. Proposals of the Board: short-term variable compensation, STI, 84.86%; fixed compensation, 86.86%; long-term variable compensation, 84.47%.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board I note that you've approved the 3 proposals of the Board concerning the compensation of the Executive Board with a high majority. Thank you for placing the trust in the Board of Directors and the Executive Board.

These, of course, are always controversial issues. I'm aware of it.

The final item is other elections, 3 elections, independent auditors, special auditors and the election of the independent proxy.

8.1. This is the election of the auditors. According to Article 21 of our Articles of Association, the auditors will be elected for 1 year by the AGM. We propose that KPMG AG Zurich will be elected for the further term of 1 year as auditors. KPMG AG has confirmed to the Audit Committee of the Board that it is independent and that it is in compliance with the independent requirements stipulated by the SEC. If KPMG AG is elected, they have announced in writing that they will accept it.

I'd like to remind you of the fact that KPMG AG will no longer be proposed for reelection as of next year's AGM, not because they've done a bad job, no, not at all. Due to the compulsory rotation of auditors for some of our essential affiliates, according to a EU directive, the Board of Directors decided to also change the approved auditors. Otherwise, we would have had 2 different auditors. In December 2018, we've announced that the Board of Directors will propose PricewaterhouseCoopers to the AGM 2020 as new auditors.

So let's move to the election. If you wish to approve the Board's proposal to elect KPMG AG Zürich for another term until next year's AGM, please vote now yes, no or abstention.

(Voting)

Joan E. Belzer - Credit Suisse Group AG - Secretary Yes votes, 95.52%; no votes, 4.25%; abstentions, 0.23%.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board I thus note that KPMG AG Zürich was reelected as auditors for another term of 1 year.

8.2 is the election of special auditors. What is this, special auditors? We are listed at the New York Stock Exchange. Hence, we are obliged to appoint a special auditor. The function of this auditor is to carry out audits in the connection of so-called qualified capital increases. The Board of Directors

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According to 8.2, now let's elect. If you wish to follow the Board's proposal to elect BDO AG Zürich as special auditors for a further term of 1 year, please vote yes. If not, vote no. Or if you wish to abstain, press the abstention field. Please vote now.

(Voting)

Joan E. Belzer - Credit Suisse Group AG - Secretary Yes votes, 98.91%. No votes, 0.84%. Abstentions, 0.25%.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board I thus note that you've reelected BDO AG Zürich for another term of office of 1 year as special auditors with limited mandate.

The final sub-item is the election of the independent proxy. The Board of Directors proposes to reelect law office, Keller Partnership Zürich, as independent proxy for a term of office until the end of the next Annual General Meeting. This is Mr. Keller's law firm independent proxy. Mr. Keller has been in this office since 2010, and he's been elected for this AGM -- at last year's AGM to act as independent proxy. Law office, Keller Partnership, confirmed to the company that it possesses the required independence to fulfill its mandate according to legislation, and they also announced that they would accept an election.

Let's proceed right to the election then. According to 8.3, if you wish to follow the Board's proposal to elect Keller KLG for a term until the end of the next Annual General Meeting, please vote yes now. If not, please vote no or abstain, respectively. Please vote now.

(Voting)

Joan E. Belzer - Credit Suisse Group AG - Secretary 99.01%, yes votes; 0.75%, no votes; 0.24%, abstentions.

Urs Rohner - Credit Suisse Group AG - Chairman of the Board I thus note that Keller KLG Zürich was reelected for a term of office of 1 year until the completion of next year's AGM serving as independent proxy.

Ladies and gentlemen, shareholders, this concludes this AGM. I would like to thank you, ladies and gentlemen, for showing your interest, for placing the trust in us with your votes, and I would like to thank you for your critical encouraging and very critical remarks and comments. Thank you very much. We hope that you will continue to do this in a very committed way. Even if we may not agree, your statements prove that you show an interest in our company and you want this company to thrive just as much as we do.

Just as mentioned at the beginning, I'd like to invite you to the reception in the lobby. Please, during the reception also, visit the exhibits that were presented by Mr. Chairman in his presentation. Take some time to talk to our employees there, our team members, to get additional information about our social corporate responsibility commitments.

Before the reception, let me mention the following points. As usual, please leave the televoters and the headsets on your chairs. And you cannot take -- you're not supposed to take them along with you. Shareholders that have traveled here by car, and I hope that's just a few, and if you've

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Minutes will be signed by myself and the secretary according to Article 14 of the Articles of Association, and it will then be published on our website.

Finally, I'd like to announce the date of the next AGM, which will take place on Thursday, April 30, 2020, again here at the Hallenstadion. Please make a note of it that next year, exceptionally, it's not going to take place on a Friday, but rather on a Thursday.

With this, I wish to close today's AGM of Credit Suisse Group Limited, and wish you a pleasant weekend, ladies and gentlemen, dear shareholders. And I hope that the weekend will not be too rainy.

Thank you and see you again.

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