Global Wealth Management & Business Banking

Business Organizational structure

Global Wealth Management & Business Banking is the leading global provider of financial services for wealthy clients and the top bank for individual and corporate clients in Switzerland.

Business group reporting
	As of or for the year ended			% change from
CHF million, except where indicated	31.12.07	31.12.06	31.12.05	31.12.06
Income	24,841	21,775	19,131	14
Adjusted expected credit loss ¹	173	156	107	11
Total operating income	25,014	21,931	19,238	14
Cash components	10,535	9,043	8,252	16
Share-based components ²	357	306	237	17
Total personnel expenses	10,892	9,349	8,489	17
General and administrative expenses	3,141	3,028	2,845	4
Services (to) / from other business units	1,171	1,118	960	5
Depreciation of property and equipment	241	232	226	4
Amortization of intangible assets	85	63	56	35
Total operating expenses	15,530	13,790	12,576	13
Business Group performance before tax	9,484	8,141	6,662	16

Key performance indicators
Cost / income ratio (%) ³	62.5	63.3	65.7

Capital return and BIS data
Return on allocated regulatory capital (%) ⁴	41.9	39.3	34.7
BIS risk-weighted assets	169,650	155,158	147,348	9
Goodwill and excess intangible assets ⁵	5,828	5,978	5,407	(3)
Allocated regulatory capital ⁶	22,793	21,494	20,142	6

Additional information
Invested assets (CHF billion)	2,298	2,123	1,887	8
Net new money (CHF billion) ⁷	156.3	114.5	98.5
Client assets (CHF billion)	3,554	3,337	2,895	7
Personnel (full-time equivalents)	51,090	48,034	44,612	6
1 In management accounts, adjusted expected credit loss rather than credit loss expense is reported for the business groups (see Note 2 in Financial Statements 2007). 2 Additionally includes related social security contributions and expenses related to alternative investment awards. 3 Operating expenses / income. 4 Business group performance before tax / average allocated regulatory capital. 5 Goodwill and intangible assets in excess of 4% of BIS Tier 1 capital. 6 10% of BIS risk-weighted assets plus goodwill and excess intangible assets. 7 Excludes interest and dividend income.

Business

The global branch network delivers comprehensive financial services to wealthy private individuals around the world and to private and corporate clients in Switzerland. Global Wealth Management & Business Banking provides all its clients with the advice, financial products and tools that fit their individual needs.

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Organizational structure

On 1 July 2005, the business group called Global Wealth Management & Business Banking was formed to encompass UBS's global wealth management businesses, along with the Swiss corporate and retail banking unit. On this date, UBS also transferred the municipal finance unit, until then a part of the Wealth Management US unit, to the Investment Bank's fixed income area.

Global Wealth Management & Business Banking is managed in a fully integrated way along its main geographic markets, although financial results are reported for the following business units separately:

– Wealth Management International & Switzerland, serving wealthy and affluent clients around the world, except domestic clients in the US;

– Wealth Management US, serving wealthy and affluent domestic US clients; and

– Business Banking Switzerland, serving retail and corporate clients in Switzerland.

Businesses focusing on client needs can only fully exploit their potential if they are provided with a reliable and efficient infrastructure. Support areas within Global Wealth Management & Business Banking provide products and services to these three business units as well as to other UBS business groups, which are charged accordingly via a transfer pricing mechanism.

At the end of 2007, as a result of the strong growth of UBS's international wealth management business, Global Wealth Management & Business Banking broadened its regional management structure. The new regional business areas are now Asia Pacific; Western Europe, Mediterranean, Middle East & Africa; North, East & Central Europe; Switzerland; and Wealth Management Americas. This development will accelerate decision-making processes and help the business group better focus on local client needs worldwide.

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