Note 2a Segment Reporting by Business Group

UBS's financial businesses are organized on a worldwide basis into three Business Groups and the Corporate Center. Global Wealth Management & Business Banking consists of three segments, Wealth Management International & Switzerland, Wealth Management US and Business Banking Switzerland. The Business Groups Investment Bank and Global Asset Management constitute one segment each.The Corporate Center is now comprised of only one segment, after the sale of Private Banks & GAM on 2 December 2005. Prior to this, Corporate Center consisted of two segments, Corporate Functions and Private Banks & GAM. In addition, the Industrial Holdings segment holds all industrial operations controlled by the Group. In total, UBS now reports seven business segments.

Global Wealth Management & Business Banking

Global Wealth Management & Business Banking comprises three segments. Wealth Management International & Switzerland offers a comprehensive range of products and services individually tailored to affluent international and Swiss clients and operates from offices around the world. Wealth Management US is a US financial services firm providing sophisticated wealth management services to affluent US clients through a highly trained financial advisor network. Business Banking Switzerland provides individual and corporate clients in Switzerland with a complete portfolio of banking and securities services, focused on customer service excellence, profitability and growth, using a multi-channel distribution. The segments share technological and physical infrastructure, and have joint departments supporting major functions such as e-commerce, financial planning and wealth management, investment policy and strategy.

Global Asset Management

Global Asset Management provides investment products and services to institutional investors and wholesale intermediaries around the globe. Clients include corporate and public pension plans, financial institutions and advisors, central banks, charities, foundations and individual investors.

Investment Bank

The Investment Bank operates globally as a client-driven investment banking and securities firm providing innovative products, research, advice and complete access to the world's capital markets for intermediaries, governments, corporate and institutional clients and other parts of UBS.

Corporate Center

Corporate Center ensures that the Business Groups operate as a coherent and effective whole with a common set of values and principles in such areas as risk management and control, financial reporting, marketing and communications, funding, capital and balance sheet management, management of foreign currency earnings, information technology infrastructure and service centers. Private Banks & GAM, which was shown as a separate segment within Corporate Center in prior years, was sold on 2 December 2005 and is presented as discontinued operations.

Industrial Holdings

The Industrial Holdings segment comprises the non-financial businesses of UBS, including the private equity business which primarily invests UBS and third-party funds in unlisted companies. The most significant business in this segment, Motor-Columbus, was sold on 23 March 2006 and is presented as discontinued operations. Additionally, certain private equity investments sold in 2006 and prior years are presented as discontinued operations.

For the year ended 31 December 2006
	Financial Businesses						Industrial Holdings	UBS
	Global Wealth Management & Business Banking			Global Asset Management	Investment Bank	Corporate Center
CHF million	Wealth Management International & Switzerland	Wealth Management US	Business Banking Switzerland
Income ¹	10,827	5,863	5,085	3,220	21,726	294	994	48,009
Credit loss (expense) / recovery	1	(1)	109	0	47	0	0	156
Total operating income	10,828	5,862	5,194	3,220	21,773	294	994	48,165
Personnel expenses	3,137	3,800	2,412	1,503	11,353	1,264	202	23,671
General and administrative expenses	885	1,073	1,070	399	3,260	1,242	187	8,116
Services (to) / from other business units	1,479	281	(642)	(105)	956	(1,978)	9	0
Depreciation of property and equipment	84	74	74	27	203 ⁴	783	18	1,263
Amortization of intangible assets ²	10	53	0	4	72	9	5	153
Goods and materials purchased							295	295
Total operating expenses	5,595	5,281	2,914	1,828	15,844	1,320	716	33,498
Business Group performance from continuing operations before tax	5,233	581	2,280	1,392	5,929	(1,026)	278	14,667
Business Group performance from discontinued operations before tax						4	852	856
Business Group performance before tax	5,233	581	2,280	1,392	5,929	(1,022)	1,130	15,523
Tax expense on continuing operations								2,786
Tax expense on discontinued operations								(13)
Net profit								12,750
Additional information³
Total assets	286,241	63,249	211,123	48,616	2,108,828	(323,434)	1,888	2,396,511
Total liabilities	281,327	57,681	205,747	46,589	2,089,140	(343,152)	3,404	2,340,736
Capital expenditure	257	273	14	498	593	1,385	97	3,117


Income ¹	10,827	5,863	5,085	3,220	21,726	294	994	48,009
Adjusted expected credit loss	(29)	0	185	0	61	(61)	0	156
Total operating income	10,798	5,863	5,270	3,220	21,787	233	994	48,165
Personnel expenses	3,137	3,800	2,412	1,503	11,353	1,264	202	23,671
General and administrative expenses	885	1,073	1,070	399	3,260	1,242	187	8,116
Services (to) / from other business units	1,479	281	(642)	(105)	956	(1,978)	9	0
Depreciation of property and equipment	84	74	74	27	203 ⁴	783	18	1,263
Amortization of intangible assets ²	10	53	0	4	72	9	5	153
Goods and materials purchased							295	295
Total operating expenses	5,595	5,281	2,914	1,828	15,844	1,320	716	33,498
Business Group performance from continuing operations before tax	5,203	582	2,356	1,392	5,943	(1,087)	278	14,667
Business Group performance from discontinued operations before tax						4	852	856
Business Group performance before tax	5,203	582	2,356	1,392	5,943	(1,083)	1,130	15,523
Tax expense on continuing operations								2,786
Tax expense on discontinued operations								(13)
Net profit								12,750

For the year ended 31 December 2005
	Financial Businesses							Industrial Holdings	UBS
	Global Wealth Management & Business Banking			Global Asset Management	Investment Bank	Corporate Center
CHF million	Wealth Management International & Switzerland	Wealth Management US	Business Banking Switzerland			Private Banks & GAM	Corporate Functions
Income ¹	9,024	5,158	4,949	2,487	17,448		455	1,236	40,757
Credit loss (expense) / recovery	(8)	0	231	0	152		0	0	375
Total operating income	9,016	5,158	5,180	2,487	17,600		455	1,236	41,132
Personnel expenses	2,579	3,460	2,450	988	9,259		1,167	245	20,148
General and administrative expenses	804	1,047	994	304	2,215		1,084	184	6,632
Services (to) / from other business units	1,371	223	(634)	116	640		(1,730)	14	0
Depreciation of property and equipment	89	65	72	21	136		857	21	1,261
Amortization of intangible assets ²	7	49	0	1	53		17	4	131
Goods and materials purchased								283	283
Total operating expenses	4,850	4,844	2,882	1,430	12,303		1,395	751	28,455
Business Group performance from continuing operations before tax	4,166	314	2,298	1,057	5,297		(940)	485	12,677
Business Group performance from discontinued operations before tax						4,556	8	496	5,060
Business Group performance before tax	4,166	314	2,298	1,057	5,297	4,556	(932)	981	17,737
Tax expense on continuing operations									2,471
Tax expense on discontinued operations									576
Net profit									14,690
Additional information³
Total assets	223,790	64,896	176,837	40,782	1,766,563		(226,069)	11,549	2,058,348
Total liabilities	219,140	59,567	170,668	39,191	1,748,934		(242,600)	11,814	2,006,714
Capital expenditure	81	84	58	16	138	25	1,264	299	1,965


Income ¹	9,024	5,158	4,949	2,487	17,448		455	1,236	40,757
Adjusted expected credit loss	(13)	(2)	122	0	36		232	0	375
Total operating income	9,011	5,156	5,071	2,487	17,484		687	1,236	41,132
Personnel expenses	2,579	3,460	2,450	988	9,259		1,167	245	20,148
General and administrative expenses	804	1,047	994	304	2,215		1,084	184	6,632
Services (to) / from other business units	1,371	223	(634)	116	640		(1,730)	14	0
Depreciation of property and equipment	89	65	72	21	136		857	21	1,261
Amortization of intangible assets ²	7	49	0	1	53		17	4	131
Goods and materials purchased								283	283
Total operating expenses	4,850	4,844	2,882	1,430	12,303		1,395	751	28,455
Business Group performance from continuing operations before tax	4,161	312	2,189	1,057	5,181		(708)	485	12,677
Business Group performance from discontinued operations before tax						4,508	56	496	5,060
Business Group performance before tax	4,161	312	2,189	1,057	5,181	4,508	(652)	981	17,737
Tax expense on continuing operations									2,471
Tax expense on discontinued operations									576
Net profit									14,690

For the year ended 31 December 2004
	Financial Businesses							Industrial Holdings ¹	UBS
	Global Wealth Management & Business Banking			Global Asset Management	Investment Bank	Corporate Center
CHF million	Wealth Management International & Switzerland	Wealth Management US	Business Banking Switzerland			Private Banks & GAM	Corporate Functions
Income ²	7,701	4,741	5,064	2,022	16,090		112	915	36,645
Credit loss (expense) / recovery	(1)	3	92	0	147		0	0	241
Total operating income	7,700	4,744	5,156	2,022	16,237		112	915	36,886
Personnel expenses	2,119	3,320	2,426	893	8,152		796	185	17,891
General and administrative expenses	642	767	1,064	299	2,538		1,077	176	6,563
Services (to) / from other business units	1,395	275	(533)	126	226		(1,509)	20	0
Depreciation of property and equipment	66	67	69	23	243		794	22	1,284
Amortization of goodwill ³	67	171	0	129	278		1	27	673
Amortization of intangible assets ³	8	107	0	0	36		17	2	170
Goods and materials purchased								263	263
Total operating expenses	4,297	4,707	3,026	1,470	11,473		1,176	695	26,844
Business Group performance from continuing operations before tax	3,403	37	2,130	552	4,764		(1,064)	220	10,042
Business Group performance from discontinued operations before tax						386	10	385	781
Business Group performance before tax	3,403	37	2,130	552	4,764	386	(1,054)	605	10,823
Tax expense on continuing operations									2,155
Tax expense on discontinued operations									198
Net profit									8,470
Additional information⁴
Total assets	164,716	48,058	210,223	29,698	1,477,402	8,043	(210,363)	9,394	1,737,171
Total liabilities	161,042	43,879	204,569	28,311	1,463,596	7,480	(220,730)	9,966	1,698,113
Capital expenditure	304	48	212	8	415	19	599	1,484	3,089


Income ²	7,701	4,741	5,064	2,022	16,090		112	915	36,645
Adjusted expected credit loss	(8)	(5)	(25)	0	(7)		286	0	241
Total operating income	7,693	4,736	5,039	2,022	16,083		398	915	36,886
Personnel expenses	2,119	3,320	2,426	893	8,152		796	185	17,891
General and administrative expenses	642	767	1,064	299	2,538		1,077	176	6,563
Services (to) / from other business units	1,395	275	(533)	126	226		(1,509)	20	0
Depreciation of property and equipment	66	67	69	23	243		794	22	1,284
Amortization of goodwill ³	67	171	0	129	278		1	27	673
Amortization of intangible assets ³	8	107	0	0	36		17	2	170
Goods and materials purchased								263	263
Total operating expenses	4,297	4,707	3,026	1,470	11,473		1,176	695	26,844
Business Group performance from continuing operations before tax	3,396	29	2,013	552	4,610		(778)	220	10,042
Business Group performance from discontinued operations before tax						438	(42)	385	781
Business Group performance before tax	3,396	29	2,013	552	4,610	438	(820)	605	10,823
Tax expense on continuing operations									2,155
Tax expense on discontinued operations									198
Net profit									8,470

Note 2b Segment Reporting by Geographic Location

The geographic analysis of total assets is based on customer domicile, whereas operating income and capital expenditure are based on the location of the office in which the transactions and assets are recorded. Because of the global nature of financial markets, the Group's business is managed on an integrated basis worldwide, with a view to profitability by product line. The geographical analysis of operating income, total assets and capital expenditure is provided in order to comply with IFRS and does not reflect the way the Group is managed. Management believes that analysis by Business Group, as shown in Note 2a, is a more meaningful representation of the way in which the Group is managed

For the year ended 31 December 2006
	Total operating income		Total assets		Capital expenditure
	CHF million	Share %	CHF million	Share %	CHF million	Share %
Switzerland	12,987	27	211,565	9	650	21
Rest of Europe / Middle East / Africa	12,771	27	734,986	31	385	12
Americas	18,367	38	1,243,933	51	1,754	56
Asia Pacific	4,040	8	206,027	9	328	11
Total	48,165	100	2,396,511	100	3,117	100

For the year ended 31 December 2005
	Total operating income		Total assets		Capital expenditure
	CHF million	Share %	CHF million	Share %	CHF million	Share %
Switzerland	13,793	34	203,907	10	973	49
Rest of Europe / Middle East / Africa	9,236	22	687,963	33	467	24
Americas	15,293	37	1,004,230	49	386	20
Asia Pacific	2,810	7	162,248	8	139	7
Total	41,132	100	2,058,348	100	1,965	100

For the year ended 31 December 2004
	Total operating income		Total assets		Capital expenditure
	CHF million	Share %	CHF million	Share %	CHF million	Share %
Switzerland	13,438	37	193,464	11	1,993	65
Rest of Europe / Middle East / Africa	7,535	20	561,390	32	556	18
Americas	13,787	37	830,350	48	376	12
Asia Pacific	2,126	6	151,967	9	164	5
Total	36,886	100	1,737,171	100	3,089	100