UBS financial highlights


UBS income statement		For the year ended		% change from
CHF million, except where indicated	31.12.05	31.12.04	31.12.03	31.12.04
Net profit attributable to UBS shareholders	14,029	8,016	5,904	75
Basic earnings per share (CHF) ¹	13.93	7.78	5.44	79
Diluted earnings per share (CHF) ¹	13.36	7.40	5.19	81
Return on equity attributable to UBS shareholders (%) ²	39.4	25.5	17.8

Performance indicators from continuing operations ³
Basic earnings per share (CHF) ¹	9.78	8.02	5.72	22
Return on equity attributable to UBS shareholders (%) ⁴	27.6	26.3	18.8

Financial Businesses ⁵
Operating income	39,896	35,971	32,957	11
Operating expenses	27,704	26,149	25,397	6
Net profit attributable to UBS shareholders	13,517	7,656	5,959	77
Cost / income ratio (%) ⁶	70.1	73.2	76.8
Net new money, wealth management businesses (CHF billion) ⁷	95.1	60.4	44.0
Personnel (full-time equivalents)	69,569	67,407	65,879	3

Pre-goodwill earnings from continuing operations ³
Operating income	39,896	35,971	32,957	11
Operating expenses	27,704	25,503	24,720	9
Net profit attributable to UBS shareholders	9,442	8,003	6,468	18
Cost / income ratio (%) ⁶	70.1	71.4	74.8

UBS balance sheet & capital management		As at		% change from
CHF million, except where indicated	31.12.05	31.12.04	31.12.03	31.12.04
Balance sheet key figures
Total assets	2,060,250	1,737,118	1,553,979	19
Equity attributable to UBS shareholders	44,324	33,941	33,659	31
Market capitalization	131,949	103,638	95,401	27
BIS capital ratios
Tier 1 (%) ⁸	12.9	11.9	12.0
Total BIS (%)	14.1	13.8	13.5
Risk-weighted assets	310,409	264,832	252,398	17
Invested assets (CHF billion)	2,652	2,217	2,098	20
Long-term ratings
Fitch, London	AA+	AA+	AA+
Moody’s, New York	Aa2	Aa2	Aa2
Standard & Poor’s, New York	AA+	AA+	AA+

¹ For the EPS calculation, see note 8 to the financial statements. ² Net profit attributable to UBS shareholders / average equity attributable to UBS shareholders less proposed distributions. ³ Excludes the amortization of goodwill in 2004 and 2003. Due to changes in accounting standards, there is no amortization of goodwill from 2005 onwards. ⁴ Net profit attributable to UBS shareholders from continuing operations / average equity attributable to UBS shareholders less proposed distributions. ⁵ Excludes results from industrial holdings. ⁶ Operating expenses / operating income less credit loss expense or recovery. ⁷ Includes Wealth Management International & Switzerland and Wealth Management US. Excludes interest and dividend income. ⁸ Includes hybrid Tier 1 capital, please refer to the BIS capital and ratios table in the capital management section and note 28 to the financial statements.

From 2005 on, all tables, charts, comments and analysis reflect the integration of Wealth Management US into the new Global Wealth Management & Business Banking Business Group, the change in treatment of the Wealth Management US cash management business and the shift of the municipal securities business to the Investment Bank. Prior years have been restated to reflect those changes. From 2005, the entire private equity portfolio started being reported as part of the Industrial Holdings segment.

Throughout this report, 2004 and 2003 results have been restated to reflect accounting changes (IAS 1, IFRS 2, IFRS 4, IAS 27, and IAS 28) effective 1 January 2005 as well as the presentation of discontinued operations.