Note 2 Reporting by Business Group

Reporting by Business Group

The Business Group results are presented on a management reporting basis. Consequently, internal charges and transfer pricing adjustments are reflected in the performance of each business. Revenue sharing agreements are used to allocate external customer to a Business Group on a reasonable basis. Transactions between Business Groups are conducted at arm’s length.

Interactive Report

For the nine months ended 30 September 2003

CHF million	WM&BB	Global AM	Invest- ment Bank	WM US	Corporate Center	UBS

Income	9,016	1,286	10,497	3,907	722	25,428
Credit loss expense ¹	(126)	0	(97)	(7)	176	(54)


Total operating income	8,890	1,286	10,400	3,900	898	25,374


Personnel expenses	3,466	616	5,753	2,782	576	13,193
General and administrative expenses	1,573	311	1,524	738	273	4,419
Depreciation	283	19	238	118	330	988
Amortization of goodwill and other intangible assets	58	120	209	257	74	718


Total operating expenses	5,380	1,066	7,724	3,895	1,253	19,318


Business Group performance before tax	3,510	220	2,676	5	(355)	6,056
Tax expense						1,285


Net profit before minority interests						4,771
Minority interests						(245)


Net profit						4,526

1 In order to show the relevant Business Group performance over time, adjusted expected loss figures rather than the IFRS actual net credit loss expense are reported for each Business Group. The adjusted expected loss is the statistically derived actuarial expected loss which reflects the inherent counterparty and country risks in the respective portfolios, plus the deferred releases representing the amortized historical differences between actual credit losses and actuarial expected loss. The difference between the adjusted expected loss figures and the IFRS actual net credit loss expense recorded at Group level for financial reporting purposes is reported in the Corporate Center. The Business Group breakdown of the net credit loss expense for financial reporting purposes of CHF 54 million for the nine months ended 30 September 2003 is as follows:Wealth Management & Business Banking CHF 33 million recovery, Investment Bank CHF 86 million expense,Wealth Management USA CHF 3 million expense and Corporate Center CHF 2 million recovery.

For the nine months ended 30 September 2002

CHF million	WM&BB	Global AM	Invest- ment Bank	WM US	Corporate Center	UBS

Income	9,327	1,254	9,932	4,346	1,955	26,814
Credit loss (expense) / recovery¹	(248)	0	(88)	(11)	130	(217)


Total operating income	9,079	1,254	9,844	4,335	2,085	26,597


Personnel expenses	3,448	583	6,357	3,318	797	14,503
General and administrative expenses	1,704	323	1,706	986	513	5,232
Depreciation	330	18	283	113	379	1,123
Amortization of goodwill and other intangible assets	71	145	288	350	89	943


Total operating expenses	5,553	1,069	8,634	4,767	1,778	21,801


Business Group performance before tax	3,526	185	1,210	(432)	307	4,796
Tax expense						887


Net profit before minority interests						3,909
Minority interests						(273)


Net profit						3,636

1 In order to show the relevant Business Group performance over time, adjusted expected loss figures rather than the IFRS actual net credit loss expense are reported for each Business Group. The adjusted expected loss is the statistically derived actuarial expected loss which reflects the inherent counterparty and country risks in the respective portfolios, plus the deferred releases representing the amortized historical differences between actual credit losses and actuarial expected loss. The difference between the adjusted expected loss figures and the IFRS actual net credit loss expense recorded at Group level for financial reporting purposes is reported in the Corporate Center. The Business Group breakdown of the net credit loss expense for financial reporting purposes of CHF 217 million for the nine months ended 30 September 2002 is as follows: Wealth Management & Business Banking CHF 178 million expense, Investment Bank CHF 37 million expense,Wealth Management USA CHF 14 million expense and Corporate Center CHF 12 million recovery.

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