UBS - Business Group reporting

In third quarter 2006, the Investment Bank’s pre-tax profit was CHF 1,083 million, down 22% from the same period a year earlier. Lower revenues in equities and fixed income, rates and currencies were partly offset by a significant increase in investment banking revenues. Expenses primarily rose on investments in IT infrastructure and business expansion efforts.

Search only in Quarterly Reporting Q3 2006

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Business Group reporting


Business Group reporting
	Quarter ended			% change from		Year to date
CHF million	30.9.06	30.6.06	30.9.05	2Q06	3Q05	30.9.06	30.9.05
Equities	1,728	2,280	1,980	(24)	(13)	6,852	5,064
Fixed income, rates and currencies	1,964	2,626	2,108	(25)	(7)	7,038	6,145
Investment banking	797	795	592	0	35	2,258	1,656
Income	4,489	5,701	4,680	(21)	(4)	16,148	12,865
Adjusted expected credit loss ¹	11	14	11	(21)	0	37	29
Total operating income	4,500	5,715	4,691	(21)	(4)	16,185	12,894
Cash components	2,007	2,533	2,196	(21)	(9)	7,349	6,048
Share-based components ²	346	455	313	(24)	11	1,186	897
Total personnel expenses	2,353	2,988	2,509	(21)	(6)	8,535	6,945
General and administrative expenses	752	713	582	5	29	2,264	1,544
Services (to) / from other business units	260	209	164	24	59	644	462
Depreciation of property and equipment	38	37	37	3	3	112	96
Amortization of intangible assets	14	14	13	0	8	43	38
Total operating expenses	3,417	3,961	3,305	(14)	3	11,598	9,085
Business Group performance before tax	1,083	1,754	1,386	(38)	(22)	4,587	3,809

KPIs
Compensation ratio (%) ³	52.4	52.4	53.6			52.9	54.0
Cost / income ratio (%) ⁴	76.1	69.5	70.6			71.8	70.6
Non-performing loans as a % of lending portfolio, gross	0.1	0.1	0.2
Impaired lending portfolio as a % of lending portfolio, gross	0.1	0.2	0.2
Average VaR (10-day 99%)	452.6	408.4	342.6	11	32

Capital return and BIS data
Return on allocated regulatory capital (%) ⁵						31.1	28.8
BIS risk-weighted assets	163,804	153,847	155,103	6	6
Goodwill	4,442	4,132	4,256	8	4
Allocated regulatory capital ⁶	20,822	19,517	19,766	7	5

Additional information
Deferral (included in adjusted expected credit loss)	59	58	41	2	44	164	114
Client assets (CHF billion)	169	164	168	3	1
Personnel (full-time equivalents) ⁷	20,652	19,512	17,954	6	15

1 In management accounts, adjusted expected credit loss rather than credit loss expense is reported for the business groups (see note 2 to the financial statements). 2 Additionally includes related social security contributions and expenses related to alternative investment awards. 3 Personnel expenses / income. 4 Operating expenses / income. 5 Year to date Business Group performance before tax (annualized) / allocated regulatory capital year to date average. 6 10% of BIS risk-weighted assets plus goodwill. 7 403 FTEs from ABN AMRO’s Global Futures and Options Business will be included from 1 October 2006 onwards.

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