UBS full year pre-tax profit CHF 5.5 billion; wealth management business’ full-year net new money CHF 35.6 billion; end-2011 Basel 2.5 tier 1 ratio 16.0%; dividend of CHF 0.10 to be proposed for 2011.

UBS ended the year with an even stronger capital position and sound liquidity and funding positions, and maintained its standing as one of the world's best capitalized banks. In the fourth quarter, the firm made clear progress towards achieving its strategic goals, reducing Basel III risk-weighted assets (RWA) by an estimated CHF 20 billion and building capital ratios further. UBS's wealth management businesses together delivered quarterly net new money inflows of CHF 5.0 billion, demonstrating clients' continued confidence in the firm amid ongoing market uncertainty. UBS also continued to make progress delivering its previously announced cost reduction program.

The Investment Bank recorded a pre-tax loss of CHF 256 million in the fourth quarter of 2011 compared with a pre-tax profit of CHF 100 million in the fourth quarter of 2010. Excluding own credit, the pre-tax loss was CHF 186 million compared with a pre-tax profit of CHF 608 million at the end of the fourth quarter of 2010, reflecting lower revenues across all business areas amidst more challenging market conditions. In investment banking, total revenues were CHF 280 million compared with CHF 910 million. Advisory revenues decreased 4% to CHF 254 million from CHF 264 million. Capital market revenues were CHF 268 million compared with CHF 757 million due to reduced capital market activity. Securities revenues decreased 19% to CHF 1,518 million from CHF 1,884 million in the fourth quarter of 2010. Equities revenues decreased 26% to CHF 704 million from CHF 945 million. Fixed income, currencies and commodities (FICC) revenues decreased 13% to CHF 814 million from CHF 939 million in the fourth quarter of 2010. Instability in the eurozone, weak economic data and lack of liquidity continued to impact credit markets, while the macro businesses benefited from increased volatility and improved client activity. A strong performance in the macro business, with revenues more than doubling to CHF 851 million, was offset by lower revenues in other FICC and credit. The combined revenues from credit, macro and emerging markets increased 27% to CHF 1,260 million from CHF 991 million. Total operating expenses decreased 4% to CHF 1,986 million compared with CHF 2,078 million. During the fourth quarter of 2011, we continued to actively reduce risk-weighted assets, particularly in our FICC business. Risk-weighted assets in the Investment Bank on a Basel 2.5 basis decreased to CHF 156 billion at the end of the fourth quarter from CHF 198 billion at the end of the third quarter.