The year 2002 was one of the most challenging ever for the
financial industry. Uncertainty about economic developments
depressed transaction levels and corporate activity. Equity
markets suffered considerable corrections as investor confidence
was undermined by negative corporate newsflow in the first part
of the year, with worries about international political developments
further subduing sentiment as the year drew to a close.
In a period where many in the financial industry were forced
to re-assess the basic assumptions about their business, we are
pleased that our strong results have confirmed the strength of
our business model.
Our integrated business model means that teams
across Business Groups work together to pool expertise and
skills for the benefit of their clients. Our clients should
effortlessly be able to access all the services UBS can provide,
wherever and whenever they need them.
The power of the integrated business model is based on the
strengths of each of the businesses that have joined UBS in recent
years. Our approach to building a powerful firm by integrating
these new partners has ensured common values and aspirations.
The latest step in our efforts to define the future as one firm is
our decision to introduce UBS as the single brand for all our
businesses from June 2003.
A single UBS brand means that we will no longer market
services using the UBS Warburg and UBS PaineWebber brands.
We have benefited hugely from their strength, which will live on
in the UBS brand. Accounting rules however, do not allow us to
record that transferred value. The PaineWebber brand, which
was recorded as an intangible value on our balance sheet, was
therefore written off in fourth quarter 2002.
