UBS results

2007 2006

Income statement
	For the year ended			% change from
CHF million, except per share data	31.12.07	31.12.06	31.12.05	31.12.06

Continuing operations
Interest income	109,112	87,401	59,286	25
Interest expense	(103,775)	(80,880)	(49,758)	28
Net interest income	5,337	6,521	9,528	(18)
Credit loss (expense) / recovery	(238)	156	375
Net interest income after credit loss expense	5,099	6,677	9,903	(24)
Net fee and commission income	30,634	25,456	21,184	20
Net trading income	(8,353)	13,743	8,248
Other income	4,332	1,598	1,127	171
Revenues from Industrial Holdings	268	262	229	2
Total operating income	31,980	47,736	40,691	(33)
Personnel expenses	24,798	23,591	20,067	5
General and administrative expenses	8,465	7,980	6,504	6
Depreciation of property and equipment	1,251	1,252	1,247	0
Amortization of intangible assets	282	153	133	84
Goods and materials purchased	119	116	97	3
Total operating expenses	34,915	33,092	28,048	6
Operating profit from continuing operations before tax	(2,935)	14,644	12,643
Tax expense	1,311	2,785	2,465	(53)
Net profit from continuing operations	(4,246)	11,859	10,178

Discontinued operations
Operating profit from discontinued operations before tax	135	879	5,094	(85)
Tax expense	(266)	(12)	582
Net profit from discontinued operations	401	891	4,512	(55)

Net profit	(3,845)	12,750	14,690
Net profit attributable to minority interests	539	493	661	9
from continuing operations	539	390	430	38
from discontinued operations	0	103	231	(100)
Net profit attributable to UBS shareholders	(4,384)	12,257	14,029
from continuing operations	(4,785)	11,469	9,748
from discontinued operations	401	788	4,281	(49)

Earnings per share
Basic earnings per share (CHF)	(2.28)	6.20	6.97
from continuing operations	(2.49)	5.80	4.84
from discontinued operations	0.21	0.40	2.13	(48)
Diluted earnings per share (CHF)	(2.28)	5.95	6.68
from continuing operations	(2.49)	5.57	4.65
from discontinued operations	0.21	0.38	2.03	(45)

2007

In 2007, UBS reported a Group net loss attributable to UBS shareholders ("attributable loss") of CHF 4,384 mil- lion – a loss of CHF 4,785 million from continuing operations and a profit of CHF 401 million from discontinued operations. In 2006, UBS recorded a Group net profit attributable to UBS shareholders ("attributable profit") of CHF 12,257 million.

The financial businesses reported an attributable loss from continuing operations of CHF 5,235 million in 2007. This compares with an attributable profit of CHF 11,249 million in 2006.

Dividend

As agreed by the extraordinary general meeting on 27 February 2008, the cash dividend for 2007 was replaced by a stock dividend. Furthermore, the Board of Directors (BoD) is authorized, at any time until 27 February 2010, to increase the share capital by a maximum of CHF 10,370,000 through the issuance of a maximum of 103,700,000 fully paid registered shares with a par value of CHF 0.10 each. Existing shareholders will be granted subscription rights for the acquisition of the new shares without payment in proportion to their shareholdings after the annual general meeting (AGM) to be held on 23 April 2008. The exchange ratio will be determined by the BoD, and shareholders will be informed of it on or by the date of the AGM. The allotted entitlements will be tradable on virt-x and therefore allow shareholders to choose whether they wish to receive new UBS AG shares or monetize the value of the entitlements by selling them in the market.

For the performance year 2006 (paid in 2007), UBS paid a cash dividend of CHF 2.20 a share. Total payout for the 2005 financial year (paid in 2006), which included a par value repayment of CHF 0.30 a share for the gain realized from the sale of Private Banks & GAM, was CHF 1.90 a share.

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2006

In 2006, attributable profit was CHF 12,257 million.

The financial businesses contributed CHF 11,253 million to attributable profit, of which CHF 11,249 million was from continuing operations. This was an improvement of 19% from CHF 9,442 million in 2005. Discontinued operations contributed CHF 4 million net profit to financial businesses. Attributable profit benefited by CHF 1,004 million from Industrial Holdings with CHF 220 million stemming from continuing operations.

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