Outlook

Having stabilized the bank’s financial condition and resized the business, we expect to see further progress in restoring the underlying profitability of the business in future quarters, particularly in 2010. However, this progress will depend on market and other factors. The early part of 2010 should reflect the full impact of 2009’s cost reductions. We do not expect an immediate recovery in client net new money flows, and the impact of low interest rates on net interest income continues to hold back revenues, especially in Wealth Management & Swiss Bank. We expect the Investment Bank’s performance to continue to improve into 2010, but its fourth quarter results will likely reflect the early stage of its recovery. In addition, based on current conditions, we expect another own credit charge in the fourth quarter as a result of further tightening of our credit spreads.