Management report

The transaction with the Swiss National Bank and the issuance of mandatory convertible notes to the Swiss Confederation resulted in a net overall charge of CHF 4.2 billion to UBS’s income statement in fourth quarter.

An own credit charge of CHF 1,616 million was recorded.

Charges for auction rate securities totaled CHF 605 million in fourth quarter 2008. These include general and administrative expenses of CHF 545 million and trading losses of CHF 60 million. These charges were recognized in addition to the provisions taken during the second quarter.

Restructuring charges of CHF 737 million were recorded.

Divestments contributed a net gain of CHF 227 million. This includes the gain on the sale of UBS’s stake in Bank of China, which was partly offset by losses related to the exiting of the commodities business by the Investment Bank.