UBS Results

In first half 2007, UBS reported net profit attributable to UBS shareholders ("attributable profit") of CHF 8,897 million – with CHF 8,632 million from continuing operations and CHF 265 million from discontinued operations.

In second quarter 2007, UBS reported attributable profit of CHF 5,622 million. This quarter, our results include two items that had a significant impact on performance. In order to fully appreciate their effect, we will show results with them and then explain what our performance would have been without them. The first item is the CHF 1,926 million post-tax gain from the sale of our 20.7% stake in Julius Baer, a result of our disposal of Private Banks & GAM in 2005, which is booked in Corporate Center. As we held the stake as a financial investment available-for-sale in our accounts, the gain from its sale is included in our performance from continuing operations. It is, however, no longer part of our continuing business, and we believe that isolating its impact provides a clearer picture of performance. The second item is the charge of CHF 229 million after tax related to the closure of Dillon Read Capital Management (DRCM), recorded in Global Asset Management. Excluding these two items, attributable profit at Group level from continuing operations would have been CHF 3,665 million while attributable profit from the financial businesses from continuing operations would have been CHF 3,455 million.