Note 10

Note 10a Due from Banks and Loans (Held at Amortized Cost)


By type of exposure
CHF million	31.12.06	31.12.05
Banks ¹	50,456	33,689
Allowance for credit losses	(30)	(45)
Net due from banks	50,426	33,644
Loans ¹
Residential mortgages	124,548	127,990
Commercial mortgages	19,989	18,509
Other loans	169,210	135,022
Subtotal	313,747	281,521
Allowance for credit losses	(1,226)	(1,611)
Net loans	312,521	279,910
Net due from banks and loans (held at amortized cost)	362,947	313,554
1 Includes due from banks and loans from Industrial Holdings in the amount of CHF 93 and CHF 728 million for 2006 and 2005 respectively.

Additional information about due from banks, loans (held at amortized cost) and loans designated at fair value
CHF million	31.12.06	31.12.05
Net due from banks and loans (held at amortized cost)	362,947	313,554
Loans designated at fair value ²	2,252	966
Total	365,199	314,520
2 Equals the sum of Loans and Structured loans in Note 9.

By geographical region (based on the location of the borrower)
CHF million	31.12.06	31.12.05
Switzerland	163,090	158,465
Rest of Europe / Middle East / Africa	67,584	50,898
Americas	117,447	94,192
Asia Pacific	18,334	12,621
Subtotal	366,455	316,176
Allowance for credit losses	(1,256)	(1,656)
Net due from banks, loans (held at amortized cost) and loans designated at fair value	365,199	314,520

By type of collateral
CHF million	31.12.06	31.12.05
Secured by real estate	146,518	148,412
Collateralized by securities	99,879	55,334
Guarantees and other collateral	27,000	24,567
Unsecured	93,058	87,863
Subtotal	366,455	316,176
Allowance for credit losses	(1,256)	(1,656)
Net due from banks, loans (held at amortized cost) and loans designated at fair value	365,199	314,520

Note 10b Allowences and Provisions for Credit Losses

CHF million	Specific allowances and provisions	Collective loan loss allowances and provisions	Total 31.12.06	Total 31.12.05
Balance at the beginning of the year	1,690	86	1,776	2,802
Write-offs	(363)	0	(363)	(651)
Recoveries	62	0	62	63
Increase / (decrease) in credit loss allowances and provisions	(108)	(48)	(156)	(374)
Acquisitions	3	0	3	(61)
Foreign currency translation and other adjustments	10	0	10	(3)
Balance at the end of the year¹	1,294	38	1,332	1,776
1 Includes country provisions of CHF 65 million at 31 December 2005. During 2006, all country provisions were released.

CHF million	Specific allowances and provisions	Collective loan loss allowances and provisions	Total 31.12.06	Total 31.12.05
As a reduction of Due from banks	30	0	30	45
As a reduction of Loans	1,188	38	1,226	1,611
As a reduction of other balance sheet positions	0	0	0	11
Subtotal	1,218	38	1,256	1,667
Included in Other liabilities related to provisions for contingent claims	76	0	76	109
Total allowances and provisions for credit losses	1,294	38	1,332	1,776

Note 10c Impaired Due from Banks and Loans

CHF million	31.12.06	31.12.05
Total gross impaired due from banks and loans ¹	2,628	3,434
Allowance for impaired due from banks	30	32
Allowance for impaired loans	1,188	1,561
Total allowances for credit losses related to impaired due from banks and loans	1,218	1,593
Average total gross impaired due from banks and loans ²	3,003	4,089
1 All impaired due from banks and loans have a specific allowance for credit losses. 2 Average balances are calculated from quarterly data.

CHF million	31.12.06	31.12.05
Total gross impaired due from banks and loans	2,628	3,434
Estimated liquidation proceeds of collateral	(1,059)	(1,366)
Net impaired due from banks and loans	1,569	2,068
Total allowances for credit losses related to impaired due from banks and loans	1,218	1,593

Note 10d Non-Performing Due from Banks and Loans

A loan (included in Due from banks or Loans) is classified as non-performing: 1) when the payment of interest, principal or fees is overdue by more than 90 days and there is no firm evidence that it will be made good by later payments or the liquidation of collateral; or 2) when insolvency proceedings have commenced; or 3) when obligations have been restructured on concessionary terms.

CHF million	31.12.06	31.12.05
Total gross non-performing due from banks and loans	1,918	2,363
Total allowances for credit losses related to non-performing due from banks and loans	1,112	1,393
Average total gross non-performing due from banks and loans ¹	2,135	3,082
1 Average balances are calculated from quarterly data.

CHF million	31.12.06	31.12.05
Non-performing due from banks and loans at the beginning of the year	2,363	3,555
Net additions / (reductions)	(157)	(515)
Write-offs and disposals	(288)	(677)
Non-performing due from banks and loans at the end of the year	1,918	2,363

By type of exposure
CHF million	31.12.06	31.12.05
Banks	29	27
Loans
Secured by real estate	561	621
Other	1,328	1,715
Total loans	1,889	2,336
Total non-performing due from banks and loans	1,918	2,363

By geographical region (based on the location of borrower)
CHF million	31.12.06	31.12.05
Switzerland	1,744	2,106
Rest of Europe / Middle East / Africa	106	155
Americas	62	94
Asia Pacific	6	8
Total non-performing due from banks and loans	1,918	2,363