Group results

2Q08 vs 2Q07:

UBS recognized a net income tax benefit of CHF 3,829 million for second quarter 2008, which includes a net impact of CHF 3,200 million from the recognition of a deferred tax asset on available tax losses. The deferred tax asset relates to losses incurred in UBS AG, Switzerland, from the writedown of investments in US subsidiaries, following losses in these subsidiaries (predominantly related to US real estate), which can be utilized to offset taxable income in Switzerland in future years. In addition, the settlement of prior years' tax audits contributed to the income tax benefit in second quarter 2008. UBS recognized a tax expense of CHF 676 million in second quarter 2007.

First half 2008 vs first half 2007:

UBS recognized a net income tax benefit of CHF 4,126 million for first half 2008, which mainly reflects a net impact of CHF 3,200 million from the recognition of a deferred tax asset on available tax losses in second quarter 2008, as described above. UBS recognized a tax expense of CHF 1,597 million in first half 2007.