Performance indicators

2007 2006

Graphs

	For the year ended
	31.12.07	31.12.06	31.12.05
RoE (%) ¹
as reported	(9.4)	28.2	39.7
from continuing operations	(10.2)	26.4	27.6
Diluted earnings per share (CHF) ²
as reported	(2.28)	5.95	6.68
from continuing operations	(2.49)	5.57	4.65
Cost / income ratio of the financial businesses (%) ^3,4	110.3	69.7	70.1
Net new money, financial businesses (CHF billion) ⁵	140.6	151.7	148.5
1 Net profit attributable to UBS shareholders / average equity attributable to UBS shareholders less distributions (where applicable). 2 Details of the EPS calculation can be found in Note 8 in Financial Statements 2007. 3 Excludes results from Industrial Holdings. 4 Operating expenses / operating income less credit loss expense or recovery. 5 Excludes interest and dividend income. 6 Includes gain on sale of 20.7% stake of Julius Baer (CHF 1,926 million, post-tax) and costs related to the closure of Dillon Read Capital Management (DRCM) (CHF 229 million, post-tax). 7 Includes gain on sale of 20.7% stake of Julius Baer (CHF 1,950 million, pre-tax) and costs related to the closure of DRCM (CHF 384 million, pre-tax).

2007

UBS focuses on four key performance indicators, designed to measure the continuous delivery of improving returns to shareholders. Each indicator is calculated based on results from continuing operations. The first two indicators, return on equity and diluted earnings per share, are based on the results of the entire firm. The cost / income ratio and net new money indicators are limited to the financial businesses. On this basis, performance indicators 2007 show:

– return on equity for full-year 2007 at negative 10.2%, down from positive 26.4% in the same period a year earlier, while the strong results posted by UBS's wealth and asset management businesses were more than offset by substantial losses in the Investment Bank;

– negative diluted earnings per share of CHF 2.49, compared with positive CHF 5.57 in 2006;

– a cost / income ratio for the financial businesses of 110.3% in 2007, significantly up from 69.7% a year ago; and

– net new money at CHF 140.6 billion, down from a record in 2006 of CHF 151.7 billion. The decrease was mostly driven by full-year outflows in Global Asset Management, mainly in institutional which had net new money outflows of CHF 16.3 billion. The net new money outflows in core / value equity mandates and, to a lesser extent, in fixed income mandates were only partly offset by net new money inflows into all other asset classes, particularly alternative and quantitative investments and money market funds. Record net new money inflows were seen in Swiss and international wealth management (where net new money inflows increased by CHF 27.5 billion from 2006), particularly in Europe and Asia Pacific. Net new money inflows of CHF 26.6 billion in the US wealth management business were an increase of CHF 10.9 billion from prior year, reflecting the recruitment of experienced advisors and reduced outflows from existing clients. The Swiss retail business recorded net new money inflows of CHF 4.6 billion.

Net new money ¹
	For the year ended
CHF billion	31.12.07	31.12.06	31.12.05
Wealth Management International & Switzerland	125.1	97.6	68.2
Wealth Management US	26.6	15.7	26.9
Business Banking Switzerland	4.6	1.2	3.4
Global Wealth Management & Business Banking	156.3	114.5	98.5
Institutional	(16.3)	29.8	21.3
Wholesale intermediary	0.6	7.4	28.2
Global Asset Management	(15.7)	37.2	49.5
UBS excluding Private Banks & GAM	140.6	151.7	148.0
Corporate Center
Private Banks & GAM ²	0.0	0.0	0.5
UBS	140.6	151.7	148.5
1 Excludes interest and dividend income. 2 Private Banks & GAM was sold on 2 December 2005.

Invested assets
	As of			% change from
CHF billion	31.12.07	31.12.06	31.12.05 ¹	31.12.06
Wealth Management International & Switzerland	1,294	1,138	982	14
Wealth Management US	840	824	752	2
Business Banking Switzerland	164	161	153	2
Global Wealth Management & Business Banking	2,298	2,123	1,887	8
Institutional	522	519	441	1
Wholesale intermediary	369	347	324	6
Global Asset Management	891	866	765	3
UBS	3,189	2,989	2,652	7
1 Private Banks & GAM was sold on 2 December 2005.

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2006

From continuing operations, performance indicators show:

– return on equity in full-year 2006 at 26.4%, down from 27.6% in 2005. Higher attributable profit was offset by an increase in average equity following strong retained earnings;

– diluted earnings per share (EPS) in 2006 at CHF 5.57, up 20% from CHF 4.65 in 2005, a reflection of increased earnings and a slight reduction in the average number of shares outstanding (–2%) following share repurchases;

– a cost / income ratio for the financial businesses of 69.7% in 2006, down 0.4 percentage points from 70.1% in 2005, reflecting the increase in net trading income and net fee and commission income, partly offset by higher personnel and general and administrative expenses (in 2006, over 8,500 employees were added in areas where UBS saw long-term strategic opportunities); and

– for the whole of 2006, net new money of CHF 151.7 billion, up from CHF 148.0 billion a year earlier (excluding Private Banks & GAM), corresponding to an annual growth rate of 5.7% of the asset base at the end of 2005. Inflows remained strong worldwide.

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