The Net New Money indicator shows the outflows or inflows of the bank in different periods. In 2008 the Net New Money indicates a negative amount which means the bank had major outflows in 2008 reaching to CHF 226 billion from the inflow of 140.6 in 2007. The main reasons which contributed to this negative amount were the outflows of global wealth management and business banking division which amount to CHF 123 billion with large outflows in the South America, Middle East and African regions.
There was no dividend payout ratio in the last two years under analysis as no dividends were paid due to losses reported by the bank. The return on assets registered a reduction and posted negative figure of 0.2 and 0.9 in 2007 and 2008 respectively. The bank has implemented a new key performance indicator framework from the first quarter of 2009 which would measure the performance in 2009 and in the future. Looking at the ratios from 2005 to 2008 we see a major decline in all the key indicators such as earnings per Share, dividend payout ratio, cost / income ratio, return on assets and equity with several ratios going into negative values. This is mainly because of the huge losses registered by the bank affected by the global economic crises and heavy investment in subprime loans. Going forward it would be quite hard to create value for the bank with respect to shareholders.
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