Targets

Search only in Quarterly Reporting Q2 2005

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Performance against targets

Year to date	30.6.05	31.3.05	30.6.04

RoE (%) ¹
as reported	28.2	32.4	27.2
before goodwill	28.2	32.4	29.5²


before goodwill	28.2	32.4	29.5²

Quarter ended	30.6.05	31.3.05	30.6.04

Basic EPS (CHF)
as reported³	2.10	2.60	1.96
before goodwill	2.10	2.60	2.14⁴


Cost / income ratio of the financial businesses (%)^{5, 6}
as reported	70.7	69.0	73.4
before goodwill	70.7	69.0	71.4⁷


Net new money, wealth management businesses (CHF billion)⁸
Wealth Management	18.4	15.4	8.2
Wealth Management USA	0.8	5.8	2.2


Total	19.2	21.2	10.4

1 Net profit attributable to UBS shareholders (annualized) / average equity attributable to UBS shareholders less dividends.
2 Net profit attributable to UBS shareholders (annualized), less the amortization of goodwill / average equity attributable to UBS shareholders less dividends.
3 Details of the EPS calculation can be found in note 8 to the financial statements.
4 Net profit attributable to UBS shareholders less the amortization of goodwill / weighted average shares outstanding.
5 Excludes results from industrial holdings.
6 Operating expenses / operating income less credit loss expense or recovery.
7 Operating expenses less the amortization of goodwill / operating income less credit loss expense or recovery.
8 Excludes interest and dividend income.

Net new money ¹

	Quarter ended			Year to date

CHF billion	30.6.05	31.3.05	30.6.04	31.3.05	30.6.04


UBS	30.0	32.3	16.9	62.3	52.0


Wealth Management & Business Banking
Wealth Management	18.4	15.4	8.2	33.8	24.4
Business Banking Switzerland	2.0	1.0	1.0	3.0	2.0


Global Asset Management
Institutional	2.7	5.1	7.6	7.8	17.7
Wholesale Intermediary	6.2	4.7	(4.6)	10.9	(6.0)


Wealth Management USA	0.8	5.8	2.2	6.6	5.0


Corporate Center
Private Banks & GAM	(0.1)	0.3	2.5	0.2	8.9

Invested assets

	As at			% change from

CHF billion	30.6.05	31.3.05	30.6.04	30.6.05	30.6.04


UBS	2,550	2,360	2,231	8	14


Wealth Management & Business Banking
Wealth Management	890	820	750	9	19
Business Banking Switzerland	148	143	139	3	6


Global Asset Management
Institutional	396	366	338	8	17
Wholesale Intermediary	290	269	257	8	13


Investment Bank	0	0	1		(100)


Wealth Management USA	725	667	652	9	11


Corporate Center
Private Banks & GAM	101	95	94	6	7

Targets

We focus on four key performance targets, designed to deliver continually improving returns to our shareholders. These targets are evaluated on a pre-goodwill basis. The first two of our four targets, return on equity and earnings per share, are calculated on a full UBS basis. Our cost / income ratio target is limited to our financial businesses. This avoids the distortion from industrial holdings, which operated at a 93.5% cost / income ratio in second quarter. Before the amortization of goodwill:

Our annualized return on equity in first half 2005 was 28.2%, down from 29.5% in the same period a year ago, but still well above our target range of 15–20%. The drop was driven by an increase in average equity as retained earnings outpaced distribution via dividend or buybacks, partly offset by higher annualized net profit.
Basic earnings per share stood at CHF 2.10, down marginally (2%) from CHF 2.14 in the same quarter a year earlier, due to a decrease in attributable profit. This was partially offset by a 2% reduction in the average number of shares outstanding due to our continuing repurchase of shares.
The cost / income ratio of our financial businesses stood at 70.7% in second quarter 2005, down from the 71.4% shown in the same quarter last year. The improvement reflected a small increase in income and lower general and administrative expenses compared to the second quarter year earlier, which included a particularly high level of operational risk costs.

Net new money in our wealth management businesses continued to be strong. In second quarter 2005, we attracted CHF 19.2 billion, compared to CHF 21.2 billion in the previous quarter. Our Wealth Management unit reported inflows of CHF 18.4 billion this quarter, up from CHF 15.4 billion in first quarter 2005 – its best result ever, driven by record inflows into our domestic European business and further strong contributions from Asian clients. In our Wealth Management USA business, net new money was CHF 0.8 billion, down from a strong CHF 5.8 billion in first quarter, with the decline partially related to outflows attributable to April tax payments.

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