UBS - UBS Targets

Search only in Quarterly Reporting Q3 2005

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Performance against targets

Year to date	30.9.05	30.6.05	30.9.04

RoE (%) ¹
as reported	29.0	28.2	25.1
before goodwill	29.0	28.2	27.4



Quarter ended	30.9.05	30.6.05	30.9.04

Basic EPS (CHF) ²
as reported	2.75	2.10	1.59
before goodwill	2.75	2.10	1.77


Cost / income ratio of the financial businesses (%) ^{3, 4}
as reported	68.5	70.7	74.9
before goodwill	68.5	70.7	72.7


Net new money, wealth management businesses (CHF billion) ⁵
Wealth Management International & Switzerland	21.2	18.4	11.4
Wealth Management USA	9.9	1.8	5.1


Total	31.1	20.2	16.5

Net new money ¹

	Quarter ended			Year to date

CHF billion	30.9.05	30.6.05	30.9.04	30.9.05	30.9.04


UBS	51.2	31.0	20.3	117.4	73.9


Global Wealth Management & Business Banking
Wealth Management International & Switzerland	21.2	18.4	11.4	55.0	35.8
Wealth Management USA	9.9	1.8	5.1	20.4	11.7
Business Banking Switzerland	(0.2)	2.0	0.4	2.8	2.4


Global Asset Management
Institutional	9.2	2.7	3.0	17.0	20.7
Wholesale Intermediary	10.7	6.2	1.0	21.6	(5.0)


Corporate Center
Private Banks & GAM	0.4	(0.1)	(0.6)	0.6	8.3

Invested assets

	As at			% change from

CHF billion	30.9.05	30.6.05	30.9.04	30.6.05	30.9.04


UBS	2,666	2,518	2,226	6	20


Global Wealth Management & Business Banking
Wealth Management International & Switzerland	944	890	772	6	22
Wealth Management USA	728	693	619	5	18
Business Banking Switzerland	150	148	140	1	7


Global Asset Management
Institutional	425	396	342	7	24
Wholesale Intermediary	312	290	259	8	20


Investment Bank	0	0	1		(100)


Corporate Center
Private Banks & GAM	107	101	93	6	15

Targets

We focus on four key performance targets, designed to deliver continually improving returns to our shareholders. These targets are evaluated pre-goodwill. 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 92.7% cost / income ratio in third quarter. Before the amortization of goodwill:

Our annualized return on equity for the first nine months of 2005 was 29.0%, up from 27.4% in the same period a year ago and still well above our target range of 15–20%. The increase was driven by rising net profit, partially offset by higher average equity, due to the growth in retained earnings.
Basic earnings per share stood at CHF 2.75 in third quarter 2005, up 55%, or CHF 0.98 from CHF 1.77 a year ago, reflecting profit growth and a slight reduction (1%) of average shares outstanding from our ongoing share buybacks.
The cost / income ratio of our financial businesses, at the lowest level since 2000, was 68.5% in third quarter 2005, down from 72.7% a year ago. This improvement reflects the strong increase in revenues in practically all our businesses, combined with our continued cost discipline

Net new money inflows in our wealth management businesses in third quarter were at a record CHF 31.1 billion, up from CHF 20.2 billion in second quarter, reflecting strong performances in all regions. The international business (excluding the domestic business in the US) recorded inflows of CHF 19.3 billion, driven by further growth in Asia and our five key European markets. The Swiss business, seeing its third consecutive quarter of positive net new money results, recorded an inflow of CHF 1.9 billion. US clients contributed CHF 9.9 billion in net new money, an extremely strong rebound from CHF 1.8 billion in second quarter.

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