Financial Statements

Income Statement
	For the year ended		% change from 31.12.05
CHF million	31.12.06	31.12.05	% change from 31.12.05
Interest and discount income	45,978	27,320	68
Interest and dividend income from trading portfolio	15,324	12,482	23
Interest and dividend income from financial investments	32	36	(11)
Interest expense	(57,507)	(33,972)	69
Net interest income	3,827	5,866	(35)
Credit-related fees and commissions	199	244	(18)
Fee and commission income from securities and investment business	12,288	9,751	26
Other fee and commission income	840	773	9
Fee and commission expense	(1,820)	(1,349)	35
Net fee and commission income	11,507	9,419	22
Net trading income	9,467	7,289	30
Net income from disposal of financial investments	333	95	251
Income from investments in associated companies	1,910	3,943	(52)
Income from real estate holdings	21	38	(45)
Sundry income from ordinary activities	2,982	2,164	38
Sundry ordinary expenses	(3,059)	(2,352)	30
Other income from ordinary activities	2,187	3,888	(44)
Operating income	26,988	26,462	2
Personnel expenses	12,886	10,999	17
General and administrative expenses	4,736	4,113	15
Operating expenses	17,622	15,112	17
Operating profit	9,366	11,350	(17)
Depreciation and write-offs on investments in associated companies and fixed assets	1,352	1,265	7
Allowances, provisions and losses	342	27
Profit before extraordinary items and taxes	7,672	10,058	(24)
Extraordinary income	1,095	5,274	(79)
Extraordinary expenses	239	0
Tax expense / (benefit)	1,970	1,835	7
Profit for the period	6,558	13,497	(51)

Balance Sheet
CHF million	31.12.06	31.12.05	% change from 31.12.05

Assets
Liquid assets	2,660	2,712	(2)
Money market paper	73,430	47,840	53
Due from banks	439,098	431,071	2
Due from customers	316,241	185,331	71
Mortgage loans	153,114	153,387	0
Trading balances in securities and precious metals	411,981	358,600	15
Financial investments	2,844	4,216	(33)
Investments in associated companies	27,076	22,016	23
Fixed assets	4,527	4,527	0
Accrued income and prepaid expenses	6,573	5,359	23
Positive replacement values	138,222	136,503	1
Other assets	9,975	7,980	25
Total assets	1,585,741	1,359,542	17
Total subordinated assets	*5,852*	6,094	(4)
Total amounts receivable from Group companies	*657,919*	557,355	18

Liabilities
Money market paper issued	69,861	52,335	33
Due to banks	556,136	482,134	15
Due to customers on savings and deposit accounts	80,883	86,997	(7)
Other amounts due to customers	508,609	406,724	25
Medium-term bonds	2,238	1,464	53
Bond issues and loans from central mortgage institutions	143,779	102,386	40
Accruals and deferred income	16,672	13,543	23
Negative replacement values	149,879	160,002	(6)
Other liabilities	10,471	5,648	85
Allowances and provisions	2,305	2,157	7
Share capital	211	871	(76)
General statutory reserve	8,295	7,927	5
Reserve for own shares	9,114	10,562	(14)
Other reserves	20,730	13,295	56
Profit for the period	6,558	13,497	(51)
Total liabilities	1,585,741	1,359,542	17
Total subordinated liabilities	*21,907*	16,022	37
Total amounts payable to Group companies	*450,093*	404,108	11

Statement of Appropriation of Retained Earnings
CHF million
The Board of Directors proposes to the Annual General Meeting the following appropriation:
Profit for the financial year 2006 as per the Parent Bank's Income Statement	6,558
Appropriation to general statutory reserve	457
Appropriation to other reserves	1,519
Proposed dividends	4,582
Total appropriation	6,558

Dividend Distribution

The Board of Directors will recommend to the Annual General Meeting on 18 April 2007 that UBS should pay a dividend of CHF 2.20 per share of CHF 0.10 par value. If the dividend is approved, the payment of CHF 2.20 per share, after deduction of 35% Swiss withholding tax, would be made on 23 April 2007 for shareholders who hold UBS shares on 18 April 2007.