UBS publishes its first quarter results 2012, available at www.ubs.com/quarterlyreporting

UBS first quarter adjusted pre-tax profit¹ CHF 2.2 billion with improved profits in all business divisions; reported pre-tax profit CHF 1.3 billion; wealth management businesses' net new money CHF 10.9 billion; industry-leading Basel 2.5 tier 1 ratio strengthened further to 18.7%; annualized Q1 2012 costs² down by CHF 1 billion; adjusted RoE approximately 13%

UBS continued to successfully execute its strategy, improving performance in all its businesses to deliver adjusted pre-tax profit¹ of CHF 2.2 billion. Wealth Management recorded a 24% rise in adjusted pre-tax profit³ on improved margins and continued cost control, and Wealth Management Americas delivered a record quarterly reported pre-tax profit of USD 209 million, up 34% on the prior quarter. Net new money inflows in the wealth management businesses more than doubled to CHF 10.9 billion. The Investment Bank successfully balanced revenue generation, risk reduction and cost efficiency, to achieve an adjusted pre-tax profit⁴ of CHF 846 million.

Strengthening its leading capital position further, reducing risk-weighted assets while remaining vigilant on costs, UBS continued to execute its strategy. The firm built its leading capital ratios significantly, reduced Basel III risk-weighted assets⁵ (RWA) by around CHF 30 billion and raised USD 2 billion in new Basel III-compliant loss-absorbing capital. UBS is ahead of its RWA reduction targets for 2012. The firm is on track to achieve its target of CHF 2 billion of cost savings by the end of 2013.

• Pre-tax profit CHF 1,304 million, up CHF 823 million; net profit attributable to UBS shareholders CHF 827 million; diluted earnings per share CHF 0.22
• Group operating income CHF 6.5 billion; adjusted operating income⁶ up 26%
• Group adjusted cost/income ratio¹ improved to 72% from 88%; reported cost/income ratio improved to 80% from 92%; adjusted return on equity approximately 13%
• Group annualized costs for first quarter of 2012 down by CHF 1 billion compared with annualized costs for the first half of 2011
• Wealth Management pre-tax profit up 70% to CHF 803 million, including a CHF 237 million pension credit; net new money more than doubled to CHF 6.7 billion on strong inflows in Asia Pacific, emerging markets and Switzerland, as well as globally from ultra high net worth clients; gross margin up 2 basis points to 93 basis points
• Wealth Management Americas record pre-tax profit up 34% to USD 209 million; cost/income ratio improved further to 87%; net new money more than doubled to USD 4.6 billion
• Investment Bank adjusted pre-tax profit⁴ increased to CHF 846 million, reflecting higher revenues across all business areas, amidst improved market conditions, trading efficiency and cost vigilance; Basel III RWA⁵ reduced by an estimated CHF 21 billion to around CHF 191 billion; securities revenues/IB VaR ratio up 58% to 76
• Global Asset Management pre-tax profit up 32% to CHF 156 million, mainly due to significantly higher performance fees, especially in alternative and quantitative investments
• Retail & Corporate pre-tax profit up 40% to CHF 575 million, including a CHF 190 million credit from pension plan changes; continued growth in client deposits as key initiatives yielded over 24,000 new private client accounts and CHF 1.6 billion in net new client assets; cost base well under control
• Capital, liquidity and funding positions remain strong:
  – Basel 2.5 tier 1 ratio rose to 18.7% from 15.9%
  – Basel 2.5 tier 1 capital increased by CHF 1.2 billion to CHF 39.6 billion
  – Basel III RWA⁵ reduced by an estimated CHF 30 billion to around CHF 350 billion
  – Basel III tier 1 ratio⁵ rose to 11.8% from 10.8%
• Invested assets CHF 2.1 trillion, up 1%
• Examples of progress against strategic objectives:
  – Group Basel III RWA reduction ahead of plan; leading capital ratios increased further; adjusted cost/income ratio within target range
  – Wealth Management annualized net new money growth 3.6% and adjusted cost/income ratio³ 67%, both within target range; on track to deliver targeted gross margin as conditions improve
  – Wealth Management Americas annualized new money growth of 2.4% and cost/income ratio of 87%, both within target range
  – Investment Bank Basel III RWA reduction ahead of plan; adjusted cost/income ratio⁴ improved to 72% from 87%
  – Global Asset Management gross margin steady and within target range at 34 basis points
  – Retail & Corporate net new business volume growth 4.2%, slightly outperforming target range; adjusted cost/income ratio⁸ 59% and net interest margin 159 basis points, both within target range