UBS - UBS Performance Indicators

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Performance against targets

	Year ended

	31.12.05	30.9.05	31.12.04


RoE (%) ¹
as reported	39.4	29.0	25.5
from continuing operations, before goodwill	27.6	27.7	26.3
	Quarter ended			Year ended

	31.12.05	30.9.05	31.12.04	31.12.05	31.12.04


Basic EPS (CHF)²
as reported	6.56	2.75	2.07	13.93	7.78
from continuing operations, before goodwill	2.66	2.59	2.05	9.78	8.02


Cost / income ratio of the financial businesses (%) ^{3, 4}
as reported	70.9	68.9	73.4	70.1	73.2
before goodwill	70.9	68.9	71.6	70.1	71.4


Net new money, wealth management businesses (CHF billion) ⁵
Wealth Management International & Switzerland	13.2	21.2	6.5	68.2	42.3
Wealth Management US	6.5	9.9	6.4	26.9	18.1


Total	19.7	31.1	12.9	95.1	60.4

Net new money ¹

	Quarter ended			Year ended

CHF billion	31.12.05	30.9.05	31.12.04	31.12.05	31.12.04


Global Wealth Management & Business Banking
Wealth Management International & Switzerland	13.2	21.2	6.5	68.2	42.3
Wealth Management US	6.5	9.9	6.4	26.9	18.1
Business Banking Switzerland	0.6	(0.2)	0.2	3.4	2.6


Global Asset Management
Institutional	4.3	9.2	3.0	21.3	23.7
Wholesale Intermediary	6.6	10.7	0.5	28.2	(4.5)


UBS excluding Private Banks & GAM	31.2	50.8	16.6	148.0	82.2


Corporate Center
Private Banks & GAM²	(0.1)	0.4	(0.6)	0.5	7.7


UBS	31.1	51.2	16.0	148.5	89.9

Invested assets

	As at			% change from

CHF billion	31.12.05	30.9.05	31.12.04	30.9.05	31.12.04


Global Wealth Management & Business Banking
Wealth Management International & Switzerland	982	944	778	4	26
Wealth Management US	752	728	606	3	24
Business Banking Switzerland	153	150	140	2	9


Global Asset Management
Institutional	441	425	344	4	28
Wholesale Intermediary	324	312	257	4	26


UBS excluding Private Banks & GAM	2,652	2,559	2,125	4	25


Corporate Center
Private Banks & GAM¹	0	107	92	(100)	(100)


UBS	2,652	2,666	2,217	(1)	20

For the last six years, we have consistently focused on four performance indicators designed to ensure we deliver continually improving returns to our shareholders. These measures are calculated before the effect of goodwill in 2004. We will modify some of them starting in 2006 to reflect the evolution of our business. They will continue to focus solely on continuing operations. Our cost / income ratio target will still be limited to our financial businesses. This avoids the distortion from industrial holdings, which operated at a 95.7% cost / income ratio in fourth quarter 2005.

Before the amortization of goodwill, our continuing operations showed:

Return on equity in full-year 2005 at 27.6%, up from26.3% in 2004. The increase was driven by higher net profit, but was partially offset by an increase in average equity levels, reflecting the growth in retained earnings. From 2006 onwards, we aim to exceed 20% over periods of fluctuating market conditions.
Basic earnings per share in fourth quarter 2005 at CHF 2.66, up 30% from CHF 2.05 a year ago, reflecting increased earnings and a slight reduction (-2%) in the average number of shares outstanding following share repurchases. Diluted earnings per share, our performance indicator from 2006, were at CHF 2.55 in fourth quarter 2005, up 30% from CHF 1.96 in the same quarter a year earlier.
A cost / income ratio in our financial businesses of 70.9% in fourth quarter 2005, down 0.7 percentage points from 71.6% a year ago. This reflects the increase in net fee and commission income and trading revenues, partly offset by higher costs related to personnel – mainly related to the expansion of our business volumes.

Our wealth management businesses continue to gather assets rapidly in all regions. In fourth quarter 2005, net new money totaled CHF 19.7 billion. This followed a record inflow of CHF 31.1 billion in third quarter. The international business (meaning all businesses except the domestic businesses in the US and Switzerland) recorded inflows of CHF 13.4 billion, driven by further growth in our five key European markets and Asia. The Swiss business recorded an outflow of CHF 0.2 billion. Our US business contributed CHF 6.5 billion in net new money, CHF 3.4 billion below third quarter levels. For the whole of 2005, net new money inflows into our wealth management businesses totaled CHF 95.1 billion, up 57% from CHF 60.4 billion in 2004, corresponding to an annual growth rate of 6.9% of the asset base at the end of 2004.

Starting in 2006, we will be reporting net new money for all financial businesses. In fourth quarter 2005, total inflows were CHF 31.2 billion, down from the very strong result of CHF 50.8 billion in third quarter. For the whole of 2005, net new money was CHF 148 billion, an all-time high, and up 80% from CHF 82.2 billion a year earlier. This amounts to an annual growth rate of 7% of the asset base at the end of 2004. All the figures above exclude Private Banks & GAM.

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