UBS - Overview

Feb. 14, 2006

At a glance

In full-year 2005, UBS reported net profit attributable to UBS shareholders (“attributable profit”) of CHF 14,029 million, with CHF 9,844 million from continuing operations and CHF 4,185 million from discontinued operations. For our financial businesses, attributable profit from continuing operations was a record CHF 9,442 million (this excludes the impact of Private Banks & GAM, which was sold in December 2005).

In fourth quarter 2005, UBS reported attributable profit of CHF 6,487 million. This includes a contribution from discontinued operations of CHF 3,858 million, mainly related to the gain from the sale of Private Banks & GAM. Attributable profit from continuing operations was CHF 2,629 million. Financial businesses contributed CHF 2,597 million to this figure. Industrial holdings, which includes our private equity portfolio and a majority stake in Motor-Columbus, contributed CHF 32 million to fourth quarter 2005 attributable profit from continuing operations. Although the profit contribution is small, this segment made up 23.6% of our operating income and 29.7% of operating expenses.

Financial Businesses & Industrial Holdings

Global Wealth Management & Business Banking

Pre-tax profit for our international and Swiss wealth management businesses was CHF 1,117 million in fourth quarter 2005, down 4% from the record result achieved in third quarter 2005. In the US, pre-tax profit rose to CHF 83 million from a pre-tax loss of CHF 5 million in third quarter. Business Banking Switzerland’s pre-tax profit was CHF 541 million, down slightly from third quarter.

Global Asset Management

Global Asset Management’s pre-tax profit was CHF 305 million in fourth quarter 2005, marginally lower than CHF 308 million in third quarter. It was another strong quarter as asset-based fees again rose, reflecting both net new money inflows and rising financial markets. These increases were offset by a rise in general and administrative expenses.

Investment Bank

In fourth quarter 2005, the Investment Bank posted a pre-tax profit of CHF 1,372 million, up 8% from the same period last year. Before goodwill, pre-tax profit was up 2%. Strong revenues in investment banking, equity derivatives and prime brokerage were offset by an increase in costs, primarily for personnel and IT.

Corporate Center

With the sale of Private Banks & GAM, Corporate Center recorded a pre-tax gain of CHF 3,911 million in fourth quarter 2005. The continuing operations of Corporate Center reported a pre-tax loss of CHF 242 million in fourth quarter 2005, compared to a loss of CHF 151 million in third quarter 2005. Pre-goodwill and before tax, the loss from continuing operations in fourth quarter a year earlier was CHF 417 million.

Industrial Holdings

In fourth quarter 2005, industrial holdings reported a net profit of CHF 197 million, of which CHF 150 million was attributable to UBS shareholders.

Fourth Quarter Report 2005