|
||||
|
|
|
|
|
|
||||
|
||||
|
||||
|
|
|
|
|
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
|
|
|
|
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
|
|
|
|
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
|
|
|
|
|
||||
|
||||
|
||||
|
||||
|
|
|
|
|
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
|
|
|
|
|
||||
|
||||
|
||||
|
||||
|
|
|
|
|
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
|
||||
Risk Management and Control
Credit risk
UBS realized a net recovery of CHF 21 million in fourth quarter 2006, compared with net recoveries of CHF 14 million in third quarter 2006 and CHF 132 million in fourth quarter 2005. The quality of our lending portfolio, as shown by the continuous reduction of our impaired exposure, along with the favorable global economic and credit environment, has allowed us to report net credit loss recoveries for the last few quarters. For full-year 2006, our net recoveries were CHF 156 million, of which CHF 48 million was due to releases of collective loan loss provisions for country risk. Net recoveries in 2005 were CHF 375 million.
Global Wealth Management & Business Banking experienced a net recovery of CHF 11 million in fourth quarter 2006, after net recoveries of CHF 8 million in third quarter 2006 and CHF 72 million in fourth quarter 2005. For full-year 2006, it reported a net recovery of CHF 109 million, compared with net recoveries of CHF 223 million in 2005.
The Investment Bank posted a net recovery of CHF 10 million in fourth quarter 2006, compared with CHF 6 million in third quarter 2006 and CHF 60 million in fourth quarter 2005. For full-year 2006, the Investment Bank realized net recoveries of CHF 47 million, compared with net recoveries of CHF 152 million in 2005.
Credit loss (expense) / recovery | |||||||
Quarter ended | % change from | Year ended | |||||
CHF million | 31.12.06 | 30.9.06 | 31.12.05 | 3Q06 | 4Q05 | 31.12.06 | 31.12.05 |
Global Wealth Management & Business Banking | 11 | 8 | 72 | 38 | (85) | 109 | 223 |
Investment Bank | 10 | 6 | 60 | 67 | (83) | 47 | 152 |
UBS | 21 | 14 | 132 | 50 | (84) | 156 | 375 |
Our gross lending portfolio increased by CHF 7 billion to CHF 364 billion on 31 December 2006 from CHF 357 billion on 30 September 2006. In Global Wealth Management & Business Banking, gross lending rose to CHF 229 billion, up slightly from CHF 227 billion on 30 September 2006. This was almost entirely due to higher secured loans extended by our wealth management units. The gross lending portfolio at the Investment Bank rose by CHF 5 billion to CHF 134 billion, mainly in the Due from banks line, with the increase reflecting the integration of Pactual and ABN AMRO's futures and options business.
The ratio of impaired loans to total loans further improved to 0.7% from 0.8% in fourth quarter 2006. Impaired loans declined 6.8% to CHF 2,628 million from last quarter's CHF 2,821 million. The continued workout of recovery positions, together with the low level of new impairments, reduced our impaired loans exposure by 23% during 2006.
Important legal information - please read the disclaimer before proceeding.
Products and services in these webpages are not available for US persons, for the exclusion of residents of other nations see the disclaimers relating to the actual services.
© UBS 1998-2008. All rights reserved.
