Investment Banking and Securities

Interactive Report

Business Unit Reporting

	Quarter ended			% change from		Year to date

CHF million, except where indicated	30.9. 2003	30.6. 2003	30.9. 2002	2Q03	3Q02	30.9. 2003	30.9. 2002


Investment Banking	349	445	379	(22)	(8)	1,081	1,376
Equities	1,288	1,377	1,453	(6)	(11)	3,484	4,417
Fixed Income, Rates and Currencies	1,849	2,038	1,424	(9)	30	6,122	5,440


Income	3,486	3,860	3,256	(10)	7	10,687	11,233
Credit loss expense ¹	(12)	(48)	(22)	(75)	(45)	(97)	(88)


Total operating income	3,474	3,812	3,234	(9)	7	10,590	11,145


Personnel expenses ²	1,859	2,095	1,809	(11)	3	5,742	6,307
General and administrative expenses	503	508	519	(1)	(3)	1,480	1,659
Depreciation	77	74	89	4	(13)	234	282
Amortization of goodwill and other intangible assets	70	69	100	1	(30)	209	288


Total operating expenses	2,509	2,746	2,517	(9)	0	7,665	8,536


Business unit performance before tax	965	1,066	717	(9)	35	2,925	2,609


Business unit performance before tax and amortization of goodwill and other intangible assets	1,035	1,135	817	(9)	27	3,134	2,897
KPI's
Compensation ratio (%) ³	53	54	56			54	56


Cost/income ratio (%) ⁴	72	71	77			72	76
Cost/ income ratio before goodwill (%) ⁵	70	69	74			70	73


Non-performing loans/gross loans (%)	1.2	1.3	2.2
Impaired loans /gross loans (%)	2.1	2.5	4.5
Average VaR (10-day 99%)	364	345	284	6	28

Additional information				% change from		Year to date

As at or for the period ended	30.9. 2003	30.6. 2003	30.9. 2002	2Q03	3Q02	30.9. 2003	30.9. 2002


Deferred releases included in credit loss expense	(10)	(14)	10	29		(32)	(2)
Regulatory equity allocated (average)	12,100	12,250	12,600	(1)	(4)
Headcount (full-time equivalents)	15,289	15,557	16,137	(2)	(5)

1 In management accounts, statistically derived actuarial expected loss adjusted by deferred releases rather than the net IFRS actual credit loss is reported in the Business Groups (see Note 2 to the Financial Statements). Deferred releases represent amortization of historical differences between actual credit losses and actuarial expected loss (for more information, please refer to pages 39–40 of the UBS Financial Report 2002).
2 Includes retention payments in respect of the PaineWebber acquisition of CHF 10 million for 3Q02. There are no further retention payments in 2003.
3 Personnel expenses/income.
4 Operating expenses/income.
5 Operating expenses less the amortization of goodwill and other intangible assets/income.

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