Statement of cash flows

	For the year ended
CHF million	31.12.08	31.12.07	31.12.06

Cash flow from / (used in) operating activities
Net profit	(20,724)	(4,708)	12,020
Adjustments to reconcile net profit to cash flow from / (used in) operating activities
Non-cash items included in net profit and other adjustments:
Depreciation of property and equipment	1,241	1,253	1,325
Impairment / amortization of goodwill and intangible assets	554	282	196
Credit loss expense (recovery)	2,996	238	(156)
Share of net profits of associates	6	(120)	(117)
Deferred tax expense / (benefit)	(7,020)	(371)	(303)
Net loss / (gain) from investing activities	(797)	(4,085)	(2,092)
Net loss / (gain) from financing activities	(47,906)	3,779	3,659
Net (increase) / decrease in operating assets:
Net due from / to banks	(16,588)	(60,762)	80,269
Reverse repurchase agreements and cash collateral on securities borrowed	236,497	173,433	(61,382)
Trading portfolio, net replacement values and financial assets designated at fair value	350,099	60,729	(177,087)
Loans / due to customers	(174,443)	47,955	64,029
Accrued income, prepaid expenses and other assets	7,512	(2,408)	(4,263)
Net increase / (decrease) in operating liabilities:
Repurchase agreements, cash collateral on securities lent	(220,935)	(271,060)	66,370
Accrued expenses and other liabilities	(32,625)	7,430	14,755
Income taxes paid	(887)	(3,663)	(2,607)
Net cash flow from / (used in) operating activities	76,980	(52,078)	(5,384)

Cash flow from / (used in) investing activities
Investments in subsidiaries and associates	(1,502)	(2,337)	2,856
Disposal of subsidiaries and associates	1,686	885	1,154
Purchase of property and equipment	(1,217)	(1,910)	(1,793)
Disposal of property and equipment	69	134	499
Net (investment in) / divestment of financial investments available-for-sale	(712)	5,981	1,723
Net cash flow from / (used in) investing activities	(1,676)	2,753	4,439

Cash flow from / (used in) financing activities
Net money market paper issued / (repaid)	(40,637)	32,672	16,921
Net movements in treasury shares and own equity derivative activity	623	(2,771)	(3,179)
Capital issuance	23,135	0	1
Capital repayment by par value reduction	0	0	(631)
Dividends paid	0	(4,275)	(3,214)
Issuance of long-term debt, including financial liabilities designated at fair value	103,087	110,874	97,675
Repayment of long-term debt, including financial liabilities designated at fair value	(92,894)	(62,407)	(59,740)
Increase in minority interests ¹	1,661	1,094	1,331
Dividends paid to / decrease in minority interests	(532)	(619)	(1,072)
Net cash flow from / (used in) financing activities	(5,557)	74,568	48,092
Effects of exchange rate differences	(39,186)	(12,228)	(2,099)
Net increase / (decrease) in cash and cash equivalents	30,561	13,015	45,048
Cash and cash equivalents, beginning of the year	149,105	136,090	91,042
Cash and cash equivalents, at the end of the year	179,666	149,105	136,090
Cash and cash equivalents comprise:
Cash and balances with central banks	32,744	18,793	3,495
Money market paper ²	86,732	77,215	87,144
Due from banks with original maturity of less than three months	60,190	53,097	45,451
Total	179,666	149,105	136,090
1 Includes issuance of preferred securities of CHF 1,617 million, CHF 996 million and CHF 1,219 million for the years ended 31 December 2008, 31 December 2007 and 31 December 2006 respectively. 2 Money market paper is included in the balance sheet under Trading portfolio assets and Financial investments available-for-sale. CHF 3,853 million, CHF 3,364 million and CHF 7,183 million were pledged at 31 December 2008, 31 December 2007 and 31 December 2006 respectively.

	For the year ended
CHF million	31.12.08	31.12.07	31.12.06

Additional information
Cash received as interest	68,239	103,828	79,805
Cash paid as interest	61,681	97,358	76,109
Cash received as dividends on equities (incl. Associates, see Note 14)	2,779	5,313	4,839

Significant non-cash investing and financing activities
Private equity investments, deconsolidation
Property and equipment	33	24	264
Goodwill and intangible assets	22
Minority interests			62
Motor-Columbus, deconsolidation
Financial investments available-for-sale			178
Property and equipment			2,229
Goodwill and intangible assets			951
Debt issued			718
Minority interests			2,057
Acquisition of ABN AMRO's Global Futures and Options Business
Property and equipment			13
Goodwill and intangible assets			428
Acquisition of Banco Pactual
Financial investments available-for-sale			36
Property and equipment			9
Goodwill and intangible assets			2,218
Debt issued			1,496
Acquisition of Piper Jaffray
Goodwill and intangible assets			605
Acquisition of McDonald Investments branch network
Property and equipment		3
Goodwill and intangible assets		262
Acquisition of Daehan Investment Trust Management Company
Property and equipment		2
Goodwill and intangible assets		224
Minority interests		60
Acquisition of Caisse Centrale de Réescompte Group (CCR)
Property and equipment	5
Goodwill and intangible assets	405
Debt issued	114
Acquisition of VermogensGroep
Property and equipment	2
Goodwill and intangible assets	173

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