Wealth Management International & Switzerland

In third quarter 2007, pre-tax profit, at a record CHF 1,616 million, was up 5% from CHF 1,543 million in second quarter.

Operating income

Total operating income, at CHF 3,315 million in third quarter 2007, increased 4% from CHF 3,196 million in second quarter. Recurring income rose CHF 130 million to CHF 2,498 million due to the higher average asset base. Non-recurring income, down CHF 10 million at CHF 824 million, fell on lower levels of client activity in the quarter.

Operating expenses

Operating expenses were CHF 1,699 million in third quarter 2007, rising CHF 46 million, or 3%, from CHF 1,653 million in second quarter. Personnel expenses rose to CHF 1,011 million in third quarter 2007 from CHF 969 million in second quarter, mainly reflecting higher personnel levels and performance-related accruals. General and administrative expenses were CHF 265 million, rising slightly from CHF 261 million in second quarter and expenses for services from other business units were up CHF 2 million at CHF 398 million.

Depreciation was CHF 24 million in third quarter 2007, up from CHF 23 million in second quarter.