UBS - Business Group Reporting

In first quarter 2004, Wealth Management USA’s pre-tax profit was CHF 43 million compared to a pre-tax loss of CHF 10 million in fourth quarter 2003, reflecting strong revenue growth as well as a decrease in staff retention payments. Before acquisition costs, pre-tax profit increased 20% to CHF 218 million. On the same basis, but in US dollars, the operating result was 23% higher than in fourth quarter.

Interactive Report

Business Group Reporting

	Quarter ended			% change from

CHF million, except where indicated	31.3.2004	31.12.2003	31.3.2003	4Q03	1Q03


Private client revenues	1,306	1,220	1,105	7	18
Municipal finance revenues	86	113	122	(24)	(30)
Net goodwill funding	(46)	(50)	(61)	8	25


Income	1,346	1,283	1,166	5	15
Adjusted expected credit loss¹	(3)	(1)	(2)	200	50


Total operating income	1,343	1,282	1,164	5	15


Personnel expenses²	947	930	888	2	7
General and administrative expenses	238	250	246	(5)	(3)
Depreciation	38	33	38	15	0
Amortization of goodwill and other intangible assets	77	79	87	(3)	(11)


Total operating expenses	1,300	1,292	1,259	1	3


Business Group performance before tax	43	(10)	(95)



Business Group reporting excluding acquisition costs and significant financial events

Total operating income	1,343	1,282	1,164	5	15
Add back: Net goodwill funding³	46	50	61	(8)	(25)



Operating income excluding acquisition costs	1,389	1,332	1,225	4	13


Total operating expenses	1,300	1,292	1,259	1	3
Retention payments	(52)	(62)	(67)	(16)	(22)
Amortization of goodwill and other intangible assets	(77)	(79)	(87)	(3)	(11)


Operating expenses excluding acquisition costs	1,171	1,151	1,105	2	6


Business Group performance before tax and excluding acquisition costs	218	181	120	20	82

KPI's	Quarter ended			% change from

CHF million, except where indicated	31.3.2004	31.12.2003	31.3.2003	4Q03	1Q03


Invested assets (CHF billion)	663	634	569	5	17


Net new money (CHF billion)¹	2.8	7.8	3.7
Interest and dividend income (CHF billion)²	3.8	4.0	4.0	(5)	(5)
Gross margin on invested assets (bps) ³	83	81	81	2	2
Gross margin on invested assets excluding acquisition costs and SFEs (bps)⁴	86	85	85	1	1


Cost/income ratio (%) ⁵	96.6	100.7	108.0
Cost/ income ratio excluding acquisition costs and SFEs (%) ⁶	84.1	86.4	90.1


Recurring fees ⁷	518	506	454	2	14
Financial advisor productivity (CHF thousand) ⁸	172	155	126	11	37

Additional information				% change from

As at	31.3.2004	31.12.2003	31.3.2003	4Q03	1Q03


Client assets (CHF billion)	711	690	634	3	12
Regulatory equity allocated (average)	5,250	5,400	5,950	(3)	(12)
Headcount (full-time equivalents)	17,679	18,016	19,243	(2)	(8)
Financial advisors (full-time equivalents)	7,451	7,766	8,625	(4)	(14)

1 Excludes interest and dividend income.
2 For purposes of comparison with US peers.
3 Income (annualized) / average invested assets.
4 Income (annualized), add back net goodwill funding and less significant financial events / average invested assets.
5 Operating expenses /income.
6 Operating expenses less the amortization of goodwill and other intangible assets, retention payments and significant financial events /income, add back net goodwill funding and less significant financial events.
7 Asset-based fees for portfolio management and fund distribution, account-based and advisory fees.
8 Private client revenues / average number of financial advisors.

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