Strategy and development

UBS's commitment

Client focus: UBS's purpose is to serve clients and provide them with confidence in financial decision making. UBS strives to truly understand clients' goals – the first priority is the success and interests of clients.

Growth through client-driven revenue streams: targeting sustainable and profitable growth by establishing a set of earnings streams based on true customer benefit.

Three businesses, one underlying trend – growth of wealth: based on sustained social and economic trends, all of UBS's businesses – Global Wealth Management & Business Banking, Global Asset Management and the Investment Bank – are focused on areas with above-average growth rates.

"One firm" approach: the synergies between UBS's businesses create additional sustainable earnings opportunities, on top of their individual growth rates. To UBS, the "one firm" approach means meeting client needs without expecting clients to worry about its internal organizational structures.

Challenges in 2007

Losses on sizeable trading positions in the US mortgage market led to UBS's first ever negative Group result: the sudden collapse in the US mortgage securitization market impacted UBS worse than anticipated, overshadowing the strength of UBS's client-driven businesses.

Lessons from these developments were drawn at all levels.

Measures taken

Closure of alternative investment business Dillon Read Capital Management in the first half of 2007.

Strategic realignment of the Investment Bank in early 2008 led to repositioning of the fixed income, currencies and commodities (FICC) business unit, in order to strengthen client-driven businesses and consolidate integration with wealth and asset management businesses.

Establishment of a workout group for mortgage-backed securities (MBS) and collateralized debt obligation portfolios, in order to improve risk management and reduce exposure.

Introduction of a new funding framework to improve balance sheet management discipline.