Targets

Search only in Quarterly Reporting Q1 2005

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Performance against targets

Year to date	31.3.05	31.12.04	31.3.04

RoE (%)¹
as reported	32.4	25.5	28.8
before goodwill	32.4	27.8²	31.1²

Quarter ended	31.3.05	31.12.04	31.3.04

Basic EPS (CHF)³
as reported	2.60	2.07	2.16
before goodwill	2.60	2.23⁴	2.34⁴


Cost / income ratio of the financial businesses (%)^{5, 6}
as reported	69.0	73.0	70.3
before goodwill	69.0	71.1⁷	68.5⁷


Net new money, wealth management businesses (CHF billion)⁸
Wealth Management	15.4	6.5	16.2
Wealth Management USA	5.8	6.8	2.8


Total	21.2	13.3	19.0

1 Net profit attributable to UBS shareholders (annualized as applicable) / average equity attributable to UBS shareholders less dividends.
2 Net profit attributable to UBS shareholders (annualized as applicable), less the amortization of goodwill / average equity attributable to UBS shareholders less dividends.
3 Details of the EPS calculation can be found in note 8 to the financial statements.
4 Net profit attributable to UBS shareholders less the amortization of goodwill /weighted average shares outstanding.
5 Excludes results from Industrial Holdings.
6 Operating expenses / operating income less credit loss expense or recovery.
7 Operating expenses less the amortization of goodwill / operating income less credit loss expense or recovery.
8 Excludes interest and dividend income.

Net new money ¹

	Quarter ended

CHF billion	31.3.05	31.12.04	31.3.04


UBS	32.3	16.4	35.1


Wealth Management & Business Banking
Wealth Management	15.4	6.5	16.2
Business Banking Switzerland	1.0	0.2	1.0


Global Asset Management
Institutional	5.1	3.0	10.1
Wholesale Intermediary	4.7	0.5	(1.4)


Wealth Management USA	5.8	6.8	2.8


Corporate Center
Private Banks & GAM	0.3	(0.6)	6.4

Invested assets

	As at			% change from

CHF billion	31.3.05	31.12.04	31.3.04	31.12.04	31.3.04


UBS	2,360	2,250	2,238	5	5


Wealth Management & Business Banking
Wealth Management	820	778	737	5	11
Business Banking Switzerland	143	140	139	2	3


Global Asset Management
Institutional	366	344	335	6	9
Wholesale Intermediary	269	257	267	5	1


Investment Bank	0	0	4		(100)


Wealth Management USA	667	639	663	4	1


Corporate Center
Private Banks & GAM	95	92	93	3	2

Targets

We focus on four key performance targets, designed to deliver continually improving returns to our shareholders. These targets are evaluated on a pre-goodwill basis. The first two of our four targets, return on equity and earnings per share, are calculated on a full UBS basis. Our cost / income ratio target is limited to our financial businesses, to avoid the distortion from industrial holdings, which operated at an 88.4% cost / income ratio in first quarter. Before the amortization of goodwill:

Our annualized return on equity for first quarter 2005 was 32.4%, up from 31.1% in the same quarter a year ago and again well above our target range of 15% to 20%, and the highest level ever reported. The increase was driven by higher attributable profit, partially offset by an increase in average equity as strong retained earnings were accompanied by the issuance of treasury shares to employees.
Basic earnings per share, also at a record level, stood at CHF 2.60, up 11%or CHF 0.26 from CHF 2.34 in the same quarter a year earlier, reflecting the increase in attributable profit as well as the 4% reduction in the average number of shares outstanding due to our continuing repurchase of shares.
The cost / income ratio of our financial businesses stood at 69.0% in first quarter 2005, slightly above the 68.5% shown in the same quarter last year. The modest drop in income reflected lower trading revenues, and was only partially offset by lower general and administrative expenses.

Net new money in our wealth management businesses continues to be strong around the world. In first quarter 2005, we attracted CHF 21.2 billion, compared to CHF 13.3 billion in the previous quarter. Our Wealth Management unit recorded inflows of CHF 15.4 billion this quarter, up from CHF 6.5 billion in fourth quarter 2004 – its second-best result ever, driven by high inflows into our domestic European business and further strong contributions from Asian clients. In our Wealth Management USA business, net new money remained strong at CHF 5.8 billion in first quarter 2005, compared to CHF 6.8 billion in fourth quarter 2004.

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