Financial performance

UBS results 2008

For full-year 2008, UBS recorded a net loss attributable to shareholders of CHF 20,887 million. The result was primarily driven by losses on risk positions in the Investment Bank. Wealth and asset management businesses remained profitable despite very difficult market conditions.

Operating expenses declined to CHF 28,555 million in 2008, a 19% decrease from the previous year. Personnel expenses decreased 36% from 2007, driven by significantly lower performance-related compensation.

Key factors affecting UBS’s financial position and results of operations in 2008

Negative Investment Bank revenues driven by trading losses on risk positions.
Credit losses due to a deteriorating economic environment and impairment charges.
A positive accounting impact from the mandatory convertible notes issued in 2008.
Increase of share capital by means of a rights offering as approved by shareholders in April.
The sale of a securities portfolio to a fund managed by BlackRock, Inc.
The agreement to transfer illiquid securities and other positions to a fund owned and controlled by the Swiss National Bank.
A gain on own credit recorded by the Investment Bank.
Provisions made by Wealth Management US in relation to auction rate securities.
A provision made in connection with the US cross-border case.
A net income tax benefit from tax losses which arose in 2008.

	As of or for the year ended			% change from
CHF million, except where indicated	31.12.08	31.12.07	31.12.06	31.12.07


Performance indicators from continuing operations

Diluted earnings per share (CHF) ¹	(7.60)	(2.61)	4.64	(191)
Return on equity attributable to UBS shareholders (%) ²	(57.9)	(11.7)	23.9	(395)
Cost / income ratio (%) ³	680.4	111.0	70.5
Net new money (CHF billion) ⁴	(226.0)	140.6	151.7
Group results

Operating income	1,201	31,721	47,484	(96)
Operating expenses	28,555	35,463	33,365	(19)
Operating profit before tax (from continuing and discontinued operations)	(27,155)	(3,597)	15,007	(655)
Net profit attributable to UBS shareholders	(20,887)	(5,247)	11,527	(298)
Personnel (full-time equivalents) ⁵	77,783	83,560	78,140	(7)
Invested assets (CHF billion)	2,174	3,189	2,989	(32)
UBS balance sheet and capital management

Balance sheet key figures
Total assets	2,015,098	2,274,891	2,348,733	(11)
Equity attributable to UBS shareholders	32,800	36,875	51,037	(11)
Market capitalization 6	43,519	108,654	154,222	(60)


BIS capital ratios ⁷
Tier 1 (%)	11.0	9.1 ⁸	12.2 ⁸
Total BIS (%)	15.1	12.2 ⁸	15.0 ⁸
Risk-weighted assets	302,273	374,421 ⁸	344,015 ⁸	(19)


Long-term ratings
Fitch, London	A+	AA	AA+
Moody’s, New York	Aa2	Aaa	Aa2
Standard & Poor’s, New York	A+	AA	AA+

1 Refer to “Note 8 Earnings per share (EPS) and shares outstanding” in the financial statements of UBS’s annual report for 2008. 2 Net profit attributable to UBS shareholders from continuing operations / average equity attributable to UBS shareholders. 3 Operating expenses / operating income before credit loss expense or recovery. 4 Excludes interest and dividend income. 5 Excludes personnel from private equity (part of the Corporate Center). 6 Refer to the “UBS shares in 2008” section of UBS’s annual report for 2008 for further information. 7 Refer to the “Capital management” section of UBS’s annual report for 2008 for further information. 8 The calculation prior to 2008 is based on the Basel I approach.

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