Parent Bank financial statements

Income statement
	For the year ended		% change from
CHF million	31.12.08	31.12.07	31.12.07
Interest and discount income	37,825	58,674	(36)
Interest and dividend income from trading portfolio	12,014	19,003	(37)
Interest and dividend income from financial investments	76	58	31
Interest expense	(49,022)	(75,179)	(35)
Net interest income	893	2,556	(65)
Credit-related fees and commissions	208	205	1
Fee and commission income from securities and investment business	11,668	15,468	(25)
Other fee and commission income	610	686	(11)
Fee and commission expense	(2,849)	(3,269)	(13)
Net fee and commission income	9,637	13,090	(26)
Net trading income	(9,466)	2,767
Net income from disposal of financial investments	176	178	(1)
Income from investments in associated companies	3,763	2,592	45
Income from real estate holdings	29	27	7
Sundry income from ordinary activities	3,384	3,352	1
Sundry ordinary expenses	(2,767)	(3,223)	(14)
Other income from ordinary activities	4,584	2,926	57
Operating income	5,648	21,339	(74)
Personnel expenses	6,707	13,505	(50)
General and administrative expenses	5,822	5,191	12
Operating expenses	12,528	18,696	(33)
Operating profit	(6,880)	2,643
Depreciation and write-offs on investments in associated companies and fixed assets	26,900	8,660	211
Allowances, provisions and losses	3,071	2,780	10
Profit before extraordinary items and taxes	(36,852)	(8,797)	(319)
Extraordinary income	1,002	4,665	(79)
Extraordinary expenses	482	4
Tax expense	157	115	37
Profit / (loss) for the period	(36,489)	(4,251)	(758)

Balance sheet
CHF million	31.12.08	31.12.07	% change from 31.12.07

Assets
Liquid assets	27,030	8,530	217
Money market paper	62,777	60,266	4
Due from banks	355,679	527,081	(33)
Due from customers	191,308	274,510	(30)
Mortgage loans	141,328	141,381	0
Trading balances in securities and precious metals	158,741	412,977	(62)
Financial investments	11,085	1,685	558
Investments in associated companies	22,001	21,228	4
Fixed assets	5,032	5,273	(5)
Accrued income and prepaid expenses	3,877	7,221	(46)
Positive replacement values	201,801	124,244	62
Other assets	8,697	13,676	(36)
Total assets	1,189,356	1,598,072	(26)
Total subordinated assets	*3,924*	6,293	(38)
Total amounts receivable from Group companies	*435,721*	602,667	(28)

Liabilities and equity
Money market paper issued	52,063	104,878	(50)
Due to banks	292,730	491,102	(40)
Due to customers on savings and deposit accounts	61,872	72,303	(14)
Other amounts due to customers	388,338	521,189	(25)
Medium-term bonds	3,150	3,228	(2)
Bond issues and loans from central mortgage institutions	143,589	189,023	(24)
Accruals and deferred income	7,895	17,368	(55)
Negative replacement values	193,108	145,445	33
Other liabilities	14,181	15,576	(9)
Allowances and provisions	2,724	3,970	(31)
Share capital	293	207	42
General statutory reserve	40,910	8,775	366
Reserve for own shares	2,877	9,441	(70)
Other reserves	22,115	19,818	12
Profit / (loss) for the period	(36,489)	(4,251)	(758)
Total liabilities and equity	1,189,356	1,598,072	(26)
Total subordinated liabilities	*21,228*	21,114	1
Total amounts payable to Group companies	*271,434*	330,567	(18)

Statement of appropriation of retained earnings

The Board of Directors proposes to the Annual General Meeting (AGM) on 15 April 2009 to approve the following appropriation:

CHF million
Profit / (Loss) for the financial year 2008 as per the Parent Bank's Income Statement	(36,489)
Appropriation to other reserves	(22,115)
Appropriation to general statutory reserves: Retained earnings	(2,472)
Appropriation to general statutory reserves: Share premium	(11,901)

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