Financial Businesses Results

The number of personnel in our financial businesses was 81,557 on 30 June 2007, up 920 compared with the end of first quarter 2007, with staff levels increasing across most of our business groups. In second quarter 2007 we decided to close DRCM and 122 of the 230 DRCM employees were transferred from Global Asset Management to the Investment Bank.

Including client advisors, the international and Swiss wealth management business added 507 staff compared with first quarter 2007. Much of the increase was in Asia Pacific, Europe and Switzerland, where our business continued to grow. We also strengthened our international (up 215) and domestic (up 77) advisory capabilities. In the US-based wealth management business, staff levels increased by 166 employees, mainly due to a higher number of non-financial advisor staff for additional branch support (up 158). The number of financial advisors rose slightly (up 8). The Swiss commercial and retail banking business recorded lower personnel numbers (down 50), reflecting streamlined structures and processes. The asset management business saw a decline (down 85), which was primarily due to the transfer of DRCM staff to the Investment Bank. It expects to experience a further decline in personnel in third quarter as a result of DRCM's closure. The Investment Bank's staff levels rose by 121 employees, solely due to the transfer of DRCM employees. Higher numbers of employees in the fixed income, rates and currencies businesses were offset by reduced staff levels in equities, IT and other logistic areas. In Corporate Center, personnel numbers were up by 261, mainly driven by increased staff levels in the India Service Center and IT Infrastructure to support business growth.