Group results

Income statement

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Income statement

Income statement (unaudited)
	Quarter ended			% change from		Year-to-date
CHF million, except per share data	30.9.08	30.6.08	30.9.07	2Q08	3Q07	30.9.08	30.9.07

Continuing operations
Interest income	16,393	17,530	28,339	(6)	(42)	54,146	83,292
Interest expense	(14,971)	(16,294)	(26,676)	(8)	(44)	(49,809)	(79,492)
Net interest income	1,422	1,236	1,663	15	(14)	4,337	3,800
Credit loss (expense) / recovery	(357)	(19)	(15)			(686)	0
Net interest income after credit loss expense	1,065	1,217	1,648	(12)	(35)	3,651	3,800
Net fee and commission income	5,709	6,221	7,797	(8)	(27)	18,145	22,907
Net trading income	(1,509)	(3,543)	(3,479)	57	57	(16,696)	5,562
Other income	292	125	387	134	(25)	525	3,584
Total operating income	5,556	4,021	6,353	38	(13)	5,625	35,853
Cash components	3,936	4,836	4,254	(19)	(7)	13,999	16,924
Share-based components	61	(224)	630		(90)	(115)	2,307
Total personnel expenses	3,997	4,612	4,884	(13)	(18)	13,884	19,231
General and administrative expenses	1,702	2,831	1,999	(40)	(15)	6,775	6,171
Depreciation of property and equipment	288	277	311	4	(7)	846	933
Impairment of goodwill	0	341	0	(100)		341	0
Amortization of intangible assets	50	49	62	2	(19)	148	210
Total operating expenses	6,036	8,110	7,256	(26)	(17)	21,993	26,545
Operating profit from continuing operations before tax	(480)	(4,089)	(903)	88	47	(16,368)	9,308
Tax expense	(913)	(3,829)	(66)	76		(5,039)	1,531
Net profit from continuing operations	433	(260)	(837)			(11,330)	7,777

Discontinued operations
Profit from discontinued operations before tax	0	59	98	(100)	(100)	179	111
Tax expense	0	1	2	(100)	(100)	1	(260)
Net profit from discontinued operations	0	58	96	(100)	(100)	178	371

Net profit	433	(202)	(741)			(11,151)	8,148
Net profit attributable to minority interests	137	156	117	(12)	17	445	428
from continuing operations	136	155	117	(12)	16	398	428
from discontinued operations	1	1	0	0		48	0
Net profit attributable to UBS shareholders	296	(358)	(858)			(11,597)	7,720
from continuing operations	297	(415)	(954)			(11,727)	7,349
from discontinued operations	(1)	57	96			131	371

Earnings per share
Basic earnings per share (CHF)	0.10	(0.14)	(0.40)			(4.40)	3.56
from continuing operations	0.10	(0.16)	(0.44)			(4.45)	3.39
from discontinued operations	0.00	0.02	0.04	(100)	(100)	0.05	0.17
Diluted earnings per share (CHF)	0.09	(0.14)	(0.41)			(4.41)	3.45
from continuing operations	0.09	(0.17)	(0.45)			(4.46)	3.28
from discontinued operations	0.00	0.02	0.04	(100)	(100)	0.05	0.17

Additional information
Personnel (full-time equivalents) ¹	79,565	81,452	83,814	(2)	(5)
1 Excludes personnel from private equity (part of Corporate Center).

Results

3Q08 vs 2Q08:

Net profit attributable to UBS shareholders was CHF 296 million, up from a net loss of CHF 358 million. Net profit attributable to UBS shareholders from continuing operations totaled CHF 297 million compared with a loss of CHF 415 million.

Third quarter 2008 saw reduced losses in the Investment Bank, with losses and writedowns recorded on exposures related to the US residential mortgage market, the US reference-linked note program, US student loan asset-backed securities and certain leveraged finance commitments. Further credit valuation adjustments were made on protection bought from monoline insurers. The Investment Bank recorded a gain of CHF 2,207 million due to the widening of UBS's own credit spread during third quarter 2008, compared with a loss of CHF 122 million in the prior quarter.

Profitability at Global Wealth Management & Business Banking was up; however the previous quarter included a provision of CHF 919 million related to auction rate securities. The pre-tax profit for Global Asset Management increased due to a gain of CHF 168 million from the sale of a minority stake in Adams Street Partners.

UBS also recognized a net credit for taxation of CHF 913 million in third quarter. Discontinued operations saw a net loss of CHF 1 million compared with net profit of CHF 57 million.

9M08 vs 9M07:

Net loss attributable to UBS shareholders was CHF 11,597 million, compared with a profit of CHF 7,720 million. Losses from continuing operations totaled CHF 11,727 million, a decline from net profits of CHF 7,349 million, mainly driven by negative revenues in the fixed income, currencies and commodities (FICC) area of the Investment Bank that were primarily related to the inventory of securities linked to the US residential real estate market. Discontinued operations saw net profit decline to CHF 131 million from CHF 371 million.

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