Item 2

Appropriation of retained earnings

A. Motion
The Board of Directors proposes the following appropriation:

CHF million

Other reserves

402

Profit for the financial year 2010 as per the Parent Bank’s income statement

6,123

Total for appropriation

6,525

Appropriation to other reserves

2,000

Appropriation to general statutory reserves (retained earnings)

4,525

Total appropriation

6,525

B. Explanation
The profit of the financial year 2010 will be attributed to other reserves and the general statutory reserves (retained earnings). The Board of Directors proposes no dividend for the financial year 2010.