Note 9d

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	31.12.07	31.12.06
Total gross non-performing due from banks and loans	1,481	1,918
Total allowances for credit losses related to non-performing due from banks and loans	873	1,112
Average total gross non-performing due from banks and loans ¹	1,820	2,135
1 Average balances are calculated from quarterly data.

CHF million	31.12.07	31.12.06
Non-performing due from banks and loans at the beginning of the year	1,918	2,363
Net additions / (reductions)	(165)	(157)
Write-offs and disposals	(272)	(288)
Non-performing due from banks and loans at the end of the year	1,481	1,918

By type of exposure
CHF million	31.12.07	31.12.06
Banks	26	29
Loans
Secured by real estate	428	561
Other	1,027	1,328
Total loans	1,455	1,889
Total non-performing due from banks and loans	1,481	1,918

By geographical region (based on the location of borrower)
CHF million	31.12.07	31.12.06
Switzerland	1,349	1,744
Rest of Europe / Middle East / Africa	78	106
Americas	51	62
Asia Pacific	3	6
Total non-performing due from banks and loans	1,481	1,918