Investment Bank

From first quarter 2008 onwards, Investment Bank revenues are shown in a way that better reflects the performance of the investment banking department and makes Investment Bank results more comparable with those of its peers. Revenue streams are split into two main components - investment banking revenues and sales and trading revenues - in addition to own credit, which is reported separately. Firstly, investment banking revenues include all corporate finance and merger and acquisition fees, as well as capital market revenues that are generated in the Investment Bank. Secondly, sales and trading revenues from the equities and the fixed income, currencies and commodities business are shown separately. In addition, gains in net trading income attributable to the observable impact on the market's widening of UBS's own credit spread on structured financial liabilities for which the fair value option was elected are shown separately.

Neither the cost / income ratio nor the compensation ratio was meaningful in first quarter 2008 due to negative total operating income.

For information on the Investment Bank's development of its market risk during first quarter 2008, please refer to pages 26-29 in the "Market risk" section of this report.

The gross lending portfolio in the Investment Bank was CHF 142 billion in first quarter 2008, down from CHF 148 billion on 31 December 2007. This reduction was mainly due to lower volumes in the secured client financing businesses.