News releases

July 2014

  1. UBS's second quarter 2014 results – Tuesday, 29 July

    UBS invites you to the presentation of its second quarter 2014 results on Tuesday, 29 July 2014. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Tom Naratil, Group Chief Financial Officer and Group Chief Operating Officer, Caroline Stewart, Global Head of Investor Relations and Hubertus Kuelps, Group Head of Communications & Branding.

June 2014

May 2014

  1. UBS's first-quarter 2014 result

       

April 2014

March 2014

February 2014

January 2014

  1. UBS to report fourth-quarter 2013 results on 4 February 2014

    UBS invites you to the presentation of its fourth-quarter 2013 results on Tuesday 4 February. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Tom Naratil, Group Chief Financial Officer, Martin Osinga, Global Head of Investor Relations (ad interim) and Hubertus Kuelps, Group Head of Communications & Branding.

  2. How tech and trade will transform the world economy: Financial Services next industry in the spotlight


    UBS unveils flagship publication for this week’s World Economic Forum in Davos entitled Macro problems, micro solutions: How trade, technology and finance can help keep the recovery going

December 2013

  1. UBS announces successful completion of public tender offer

    UBS has repurchased certain outstanding tier 2 and senior bonds for approximately CHF 1.9

  2. UBS to buy back outstanding bonds in public tender offer

    UBS offers to buy back certain outstanding tier 2 and senior bonds for cash up to approximately CHF 2.15 billion.

October 2013

  1. UBS's third-quarter 2013 result

  2. UBS to report third-quarter 2013 results on 29 October 2013

    UBS invites you to the presentation of its third-quarter 2013 results on Tuesday 29 October. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Tom Naratil, Group Chief Financial Officer, Caroline Stewart, Global Head of Investor Relations and Hubertus Kuelps, Group Head of Communications & Branding.

  3. UBS publishes updated timeseries

    UBS publishes updated timeseries showing historical financial information for Wealth Management Americas and the Corporate Center reflecting changes to their reporting structures in the third quarter of 2013

August 2013

  1. UBS consumption indicator: virtually no change in consumer sentiment

    The UBS consumption indicator remained virtually unchanged in July. An increase in new car registrations was balanced by gloomier consumer sentiment and a weaker retail sales.

July 2013

  1. UBS to report second-quarter 2013 results on 30 July 2013

    UBS invites you to the presentation of its first-quarter 2013 results on Tuesday 30 July. The results will be presented by Sergio P. Ermotti, Group Chief Executive Officer, Tom Naratil, Group Chief Financial Officer, Caroline Stewart, Global Head of Investor Relations and Hubertus Kuelps, Group Head of Communications & Branding.

  2. Preliminary results for 2Q 2013; UBS reaches agreement in principle to settle industry litigation with FHFA for RMBS offerings

    UBS announces preliminary results for second quarter 2013 reflecting significant progress in the execution of its strategy. UBS reaches agreement in principle to settle litigation with FHFA for RMBS offerings between 2004 and 2007

June 2013

May 2013

April 2013

  1. UBS's first-quarter 2013 result

March 2013

February 2013

January 2013

December 2012

October 2012

  1. UBS announces strategic acceleration from a position of strength

    Zurich/Basel, 30 October 2012 – Today, UBS announced a significant acceleration in the implementation of its strategy to transform the firm and create the UBS of the future. Building on the progress it has made in the last 12 months, UBS will achieve this transformation by further sharpening its focus in the Investment Bank. By concentrating on its traditional strengths in advisory, research, equities, FX and precious metals and by exiting business lines, predominantly those in fixed income that have been rendered uneconomical by changes in regulation and market developments, UBS will reduce costs significantly while driving further efficiencies across the Group more rapidly. By 2015, UBS is likely to have a headcount of around 54,000. As a result of these actions UBS will be unique in the banking industry – it will be less capital and balance-sheet intensive, highly cash flow generative, more focused on serving its clients and capable of maximizing value for its employees and shareholders.

August 2012

July 2012

May 2012

March 2012

February 2012

December 2011

November 2011

October 2011

September 2011

  1. Leadership change at UBS

  2. Media Release

    Zurich/Basel, 15 September 2011 - UBS has discovered a loss due to unauthorized trading by a trader in its Investment Bank. The matter is still being investigated, but UBS's current estimate of the loss on the trades is in the range of USD 2 billion. It is possible that this could lead UBS to report a loss for the third quarter of 2011. No client positions were affected.

August 2011

  1. UBS publishes first half 2011 Basel II Pillar 3 report

    UBS's Basel II Pillar 3 report is an update as of 30 June 2011 of UBS's Basel II Pillar 3 quantitative disclosures published in UBS's Annual Report 2010. This report provides additional disclosures on capital and risk and should be read in conjunction with UBS's second quarter 2011 financial report published on 26 July 2011 and UBS's Annual Report 2010 published on 15 March 2011. It is available in English.

July 2011

April 2011

  1. UBS first-quarter profit before tax CHF 2.2 billion; Group net new money CHF 22.3 billion; Tier 1 capital ratio 17.9%


    For the first quarter of 2011 we report higher profits than in the fourth quarter of 2010. Net new money for the Group was positive, with positive net flows recorded across all of our asset-gathering businesses confirming the return of client trust and confidence. Our Basel II tier 1 capital ratio remains among the highest in the industry.

March 2011

  1. Agenda for the Annual General Meeting of UBS AG on 28 April 2011


    Zurich/Basel, 25 March 2011 - UBS AG today published the agenda for the Annual General Meeting (AGM) on 28 April 2011. The agenda items are as follows:

  2. UBS publishes Annual Report 2010


    Zurich/Basel, 15 March 2011 - UBS's Annual Report for 2010 provides comprehensive information on the firm, its strategy, business, governance and financial performance. It contains both audited and unaudited information.

    • UBS's net profit attributable to shareholders for 2010 was CHF 7.5 billion
    • 2010's diluted earnings per share were CHF 1.96

February 2011

  1. UBS fourth quarter net profit attributable to shareholders of CHF 1.3 billion. Full year net profit of CHF 7.2 billion

    • For 2010, net profit attributable to UBS shareholders was CHF 7.2 billion compared with a loss of CHF 2.7 billion in 2009. 2010 diluted earnings per share of CHF 1.87 compared with negative CHF 0.75 in 2009, and return on equity of 15.9 % for 2010 compared with negative 7.8% at the end of last year
    • During 2010 our BIS tier 1 capital ratio increased to 17.7% from 15.4% and our BIS core tier 1 capital ratio increased to 15.3% from 11.9% at the end of 2009. We will continue to retain earnings to meet capital requirements and will not pay a dividend for 2010
    • Cost discipline maintained; we achieved our fixed cost target of less than CHF 20 billion for 2010

  2. Sally Bott not to stand for re-election at UBS Annual General Meeting on 28 April 2011


    Zurich/Basel, 7 February 2011 - UBS today announces that Sally Bott, member of the UBS Board of Directors, will not stand for re-election at the UBS Annual General Meeting on 28 April 2011. UBS will announce in due course if it will nominate an additional candidate for election to the Board of Directors.

    Sally Bott informed the Board of Directors that she will pursue other endeavours and therefore will not stand for re-election.

    Sally Bott was elected to the Board of Directors at the October 2008 Extraordinary General Meeting. She chairs the Human Resources and Compensation Committee and is also a member of the Corporate Responsibility Committee and the Governance and Nominating Committee.

    Kaspar Villiger, Chairman of the Board of Directors of UBS, said: "I greatly regret that Sally Bott is leaving our Board. Her in-depth knowledge in the field of human resources was an invaluable asset for the Board during the past two and a half years. I thank Sally for her outstanding contributions and great commitment and wish her every success and fulfilment in the future."

December 2010

November 2010

October 2010

  1. UBS third quarter net profit attributable to shareholders of CHF 1,664 million; diluted earnings per share of CHF 0.43

    Revenues affected by unusually low levels of client activity; management responded by reducing costs                                                                                                                                             Results include a CHF 825 million net tax credit and an own credit charge of CHF 387 million; profit before tax of CHF 818 million

September 2010

  1. UBS announces Alex Wilmot-Sitwell and Chi-Won Yoon as Co-Chairmen and Co-CEOs, Asia Pacific

    UBS today announced the appointment of Alex Wilmot-Sitwell as Co-Chairman and Co-CEO of Asia Pacific. Alex will lead the region together with Chi-Won Yoon, current Chairman and CEO, Asia Pacific. Alex will be based in Hong Kong and will take over his new role on 1st November 2010. Carsten Kengeter, currently Co-CEO UBS Investment Bank, will become sole head of the Investment Bank.

  2. UBS study: «Prices and Earnings»

    Oslo, Zurich and Geneva again the world's most expensive cities.

    According to a UBS study, Oslo, Zurich and Geneva are the world's most expensive cities once again this year, followed by Tokyo, Copenhagen and New York. The lowest prices for a broad basket of goods and services can be found in Mumbai, Manila and Bucharest.

August 2010

  1. UBS publishes first half 2010 Basel II Pillar 3 report

    UBS's Basel II Pillar 3 report is an update as of 30 June 2010 of UBS's Basel II Pillar 3 quantitative disclosures published in UBS's Annual Report 2009. This report provides additional disclosures on capital and risk and should be read in conjunction with UBS's second quarter 2010 financial report published on 27 July 2010 and UBS's Annual Report 2009 published on 15 March 2010. It is available in English.

July 2010

  1. UBS second quarter pre-tax profit of CHF 2,614 million

    Following Swiss parliamentary approval of the US-Swiss Government Agreement, UBS expects to achieve a comprehensive resolution of all outstanding matters with the US government related to the US cross-border business by October 2010.

June 2010

May 2010

  1. UBS reports a first quarter pre-tax profit of CHF 2,810 million

    Zurich/Basel, 4 May 2010 - Commenting on UBS's first quarter 2010 results, Group CEO Oswald J. Grübel said: "We are well positioned to meet our medium-term goals. We implemented the measures announced in 2009 and delivered a good profit while managing our costs and using our balance sheet and risks in a disciplined way."

April 2010

March 2010

  1. UBS forecasts Q1 result for FICC unit

    Zurich/Basel, 30 March 2010 - A media report late yesterday indicated that UBS's Fixed Income, Currencies and Commodities unit (FICC) would generate revenue of about US$2.3 billion in first quarter 2010. Under SIX ad hoc publicity rules, UBS is required to comment on this report. The reported figure is slightly higher than FICC's current first quarter forecast revenues. Because the quarter has not ended and results to date are subject to possible fair value adjustments, including those relating to own credit, this forecast may not be reliable. UBS will issue its first quarter 2010 financial results on 4 May 2010.

February 2010

  1. UBS reports a fourth quarter profit of CHF 1,205 million

    Zurich/Basel, 9 February 2010 - Commenting on UBS's fourth quarter 2009 results, Group CEO Oswald J. Grübel said: "We entered 2009 at the height of the crisis. By the end of 2009 UBS has returned to profitability, delivering on its priorities. We have taken decisive action to transform UBS, and it is now a focused, efficient and resilient firm. We expect that our return to profitability will increase clients' confidence in UBS and restore our reputation."

December 2009

  1. UBS AG nominates Wolfgang Mayrhuber for election to its Board of Directors

    UBS AG has nominated Wolfgang Mayrhuber for election to its Board of Directors. Wolfgang Mayrhuber is the Chairman of the Executive Board and CEO of Deutsche Lufthansa AG. As such, he is responsible for the aviation group, which comprises the Passenger Airline Group, Logistics, MRO, Catering and IT Services segments and has 115,000 employees worldwide.

    Kaspar Villiger, Chairman of the Board of UBS, said: "Wolfgang Mayrhuber has gained substantial leadership experience in his almost 40-year career in a global corporation. He is a highly regarded figure well beyond the airline industry and brings with him strategic as well as operational expertise from his various activities on supervisory boards. I am very pleased that he has agreed to stand for election to our Board."

    UBS's annual general meeting takes place on 14 April 2010 in Basel. With the election of Mayrhuber, eleven of the maximum of twelve seats in the Board of Directors would be filled. UBS AG will announce the nomination to fill the final vacancy in due course.

    In September, UBS announced that Sergio Marchionne and Peter Voser had declared their intention not to stand for reelection to the Board. Both want to concentrate on their current demanding management positions.

November 2009

  1. UBS reports a third quarter loss of CHF 564 million, impacted by accounting charges of CHF 2,150 million

    Commenting on UBS's third quarter results, Group CEO Oswald J. Grübel said: "In the last two quarters, we have been addressing the bank's most critical problems. Business is steadily returning to normal: We see this in a clear improvement in our financial performance. Management actions are delivering visible results, and we are continuing to emphasize risk reduction and capital strength. Moreover, the settlement of the litigation with US tax authorities and the decision of the Swiss government to exit its investment in UBS are having a profound impact on our efforts to rebuild confidence in our company and on staff morale. Having stabilized the bank's financial condition and resized the business, I expect to see further progress in future quarters, particularly in 2010. However, this progress will depend on market and other factors."

October 2009

  1. UBS Appoints Robert J. McCann as Chief Executive Officer, Wealth Management Americas & Member of UBS Group Executive Board

    UBS AG announced today the appointment of Robert J. McCann as Chief Executive Officer of UBS Wealth Management Americas and Member of the Group Executive Board of UBS AG.

    Mr. McCann, 51, will immediately assume responsibility for the firm's domestic wealth management businesses in the United States and Canada, including all international business booked in the US. He will lead nearly 8,000 Financial Advisors in more than 320 branches across the US, Puerto Rico and Canada, managing CHF 695 billion in invested assets.

    UBS Group CEO Oswald Gruebel said: "I want to welcome Bob McCann to UBS. He comes to us having led one of the largest wealth management advisory teams in the world. Bob has an outstanding reputation as an inspiring and thoughtful leader and will apply his long and deep client relationship and business experience to gain market share, increase profitability and grow our Wealth Management Americas business. I am confident that his proven ability to meet client needs, manage businesses and develop financial advisors will drive UBS Wealth Management Americas to a higher level of performance and return for all stakeholders.

    "In the Americas alone, the wealth management market opportunity represents high net worth assets in excess of USD 20 trillion. Under Bob's leadership, I believe that the business will now consolidate its position as the firm of choice for those clients seeking a fully integrated offering of diverse products and tailored advisory services."

    Mr. McCann said: "Coming to UBS is a once-in-a-lifetime opportunity to join a leading global wealth manager. It is a firm that I always considered to be a tough competitor and I will add my energy and ideas to the turnaround underway. The domestic Americas business represents an enormous wealth management opportunity for UBS. I see tremendous long-term potential growth for clients, employees and shareholders."

    Over a 26-year career at Merrill Lynch, Mr. McCann held a variety of executive leadership positions throughout the firm. Prior to his departure in January 2009, Mr. McCann was President of Global Wealth Management. Previous roles he held during his tenure at the firm included Vice Chairman of the firm's Wealth Management Group, which included Global Private Client and Merrill Lynch Investment Managers. He was also Head of Global Securities Research, Chief Operating Officer of Global Markets and Investment Banking, Head of Global Institutional Sales and Head of Global Equity Trading and Markets.

    Mr. McCann received a B.A. in Economics from Bethany College and an M.B.A. from Texas Christian University.

September 2009

  1. Sergio Marchionne and Peter Voser will not stand for re-election to the Board of Directors of UBS AG

    UBS has announced that Sergio Marchionne, senior independent director of the Board of Directors, and Peter Voser have decided not to stand for re-election to the Board of UBS AG at the annual general meeting (AGM) which will take place on 14 April 2010. Sergio Marchionne and Peter Voser would both like in future to focus on their current demanding management positions and have therefore decided not to seek any further mandates at UBS.

    Sergio Marchionne is chief executive officer (CEO) of Fiat S.p.A., Turin, and Fiat Group Automobiles as well as CEO of Chrysler Group LLC and chairman of CNH Case New Holland, a Fiat Group company. He was elected to the BoD at the AGM 2007 and appointed independent vice chairman and senior independent director in 2008. He is a member of the governance and nominating committee and of the strategy committee.

    Peter Voser, CEO and executive BoD member of Royal Dutch Shell plc in London, was elected to the BoD at the AGM 2005. He is a member of the governance and nominating committee and of the strategy committee.

    Kaspar Villiger, Chairman of the Board of UBS, said of these decisions: "I would like to thank the outgoing board members Sergio Marchionne and Peter Voser for their strong contributions to the management of our firm. With their comprehensive economic and entrepreneurial competence they supported UBS in difficult times and provided significant input to the stabilization and the successful initiation of the turnaround of our company."

    UBS will provide information at a later stage regarding candidates to succeed the outgoing board members.

August 2009

  1. UBS publishes first half 2009 Basel II Pillar 3 report

    UBS's Basel II Pillar 3 report is an update as of 30 June 2009 of UBS's Basel II Pillar 3 quantitative disclosures published in UBS's restated 2008 annual report. This report provides additional disclosures on capital management, credit risk, market risk and securitization and should be read in conjunction with UBS' second quarter 2009 financial report published on 4 August 2009. It is available in English at www.ubs.com/investors.

  2. SEC form 6-K filing: Announcement by Swiss Confederation regarding conversion of UBS mandatory convertible notes and placement of shares

    The Swiss Confederation (the "Confederation") has announced its intention to exercise its right to convert all CHF 6 billion of its holding of UBS Mandatory Convertible Notes due 2011 ("MCNs") and to place with institutional investors the newly issued UBS shares received upon conversion.

    Upon conversion of the MCNs, UBS will issue 332,225,913 new shares with a nominal value of CHF 0.10 each from existing conditional capital. As a result, the share capital of UBS will increase from currently CHF 322,583,859.90 to CHF 355,806,451.20. Conversion and the capital increase are expected to take place on 25 August 2009.

    Further, in connection with the conversion of the MCNs, the Confederation will waive its right to receive future coupons on the converted MCNs for a cash amount of approximately CHF 1.8 billion (the "Coupon Consideration"), representing the present value of the future coupon payments. The Coupon Consideration does not differ materially in amount from the book value of the relevant liability held in UBS's balance sheet as at 30 June 2009. The Coupon Consideration will, therefore, have no material impact on UBS's profit and loss account for the third quarter of 2009. However, the Coupon Consideration will reduce UBS's regulatory capital by approximately CHF 1.4 billion.

    This document does not constitute an offer of securities for sale in the United States of America. Securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States of America absent registration or an exemption from registration thereunder.

  3. Announcement by Swiss Confederation regarding conversion of UBS mandatory convertible notes and placement of shares

    The Swiss Confederation (the "Confederation") has announced its intention to exercise its right to convert all CHF 6 billion of its holding of UBS Mandatory Convertible Notes due 2011 ("MCNs") and to place with institutional investors the newly issued UBS shares received upon conversion.

    Upon conversion of the MCNs, UBS will issue 332,225,913 new shares with a nominal value of CHF 0.10 each from existing conditional capital. As a result, the share capital of UBS will increase from currently CHF 322,583,859.90 to CHF 355,806,451.20. Conversion and the capital increase are expected to take place on 25 August 2009.

    Further, in connection with the conversion of the MCNs, the Confederation will waive its right to receive future coupons on the converted MCNs for a cash amount of approximately CHF 1.8 billion, (the "Coupon Consideration"), representing the present value of the future coupon payments. The Coupon Consideration is expected to be paid on 25 August 2009. UBS considers the Federal Council's decision an acknowledgement of the measures the bank has taken so far to restore its health. Chairman Kaspar Villiger said: "The Board of Directors and the executive management of UBS would like to thank the Swiss Confederation, the Swiss National Bank and FINMA for their prudent and resolute course of action from October 2008 to this day."

  4. Formal signing of settlement agreement relating to the John Doe summons

    Agreement does not call for any payment

  5. UBS study: «Prices and Earnings» 2009

    Oslo, Copenhagen, Zurich and Geneva named the most expensive cities; wages highest in Switzerland, Denmark and the US

  6. Agreement to resolve the John Doe summons

    Today, the US government informed the US District Court of the Southern District of Florida that all parties have reached an agreement to resolve the John Doe summons matter and that they have initialed the final documentation. The hearing scheduled for 17 August will be removed from the court's calendar, and immediately after the formal signing has occurred, the parties will file the agreed upon stipulation of dismissal with the court.

  7. UBS reports a second quarter loss of CHF 1.4 billion; quarter-end BIS tier 1 ratio of 13.2%

    UBS reports a second quarter loss of CHF 1,402 million.

July 2009

  1. Update on John Doe Summons Litigation

    The US Government has informed the Court in the John Doe Summons matter that the parties have reached an agreement in principle on the major issues and expect to resolve the remaining issues in the coming week. A status conference among the parties has been scheduled for August 7, 2009. At the request of the US and Swiss Governments, we have agreed not to comment further at this time.

  2. UBS Saudi Arabia receives commencement letter from the Capital Market Authority of the Kingdom of Saudi Arabia

    UBS AG today announces that UBS Saudi Arabia has received approval from the Capital Market Authority (CMA) to commence securities business activities in the Kingdom of Saudi Arabia. This enables the firm to expand its presence in the Middle East and marks a further step towards the firm's goal of becoming one of the region's leading financial services providers.
    UBS Saudi Arabia is based in Riyadh and will provide the firm's comprehensive range of services to government, corporate and individual clients covering wealth management, investment banking, fixed income sales and execution, and institutional asset management.

    In establishing UBS Saudi Arabia, UBS has partnered with local interests including Mohammed Al Dhoheyan, previously CEO of the Development and Management House for Investments, and MerchantBridge, an equity house investing in the Middle East.

    John Fraser, Chairman and CEO of UBS Global Asset Management, UBS AG Group Executive Board member and Chairman of UBS Saudi Arabia said: "We are delighted with the approval to commence business in Saudi Arabia and look forward to providing top quality financial and securities business services to our clients in the Kingdom."

    "With over 40 years' experience in the region, our decision to establish UBS Saudi Arabia in the Kingdom is further affirmation of UBS's long-standing commitment to the Middle East and marks yet another important milestone in this very critical and substantial market."

    Mohamed Sammakia, CEO of UBS Saudi Arabia also commented: "Saudi Arabia is the dominant market in the Gulf region and, as such, we are very determined to make this business a success. In particular we are very proud of the excellent team already on the ground that will support our local clients and capitalise on the myriad of opportunities within the Kingdom".

    Mohamed Al Dhoheyan, Vice Chairman of UBS Saudi Arabia also commented: "UBS has a deep-rooted relationship with the Kingdom dating back to the early 1950s. We have a great opportunity to capitalize on our strengths by now being on the ground."

  3. The US government and UBS, supported by the Swiss government, agree to 15-day suspension of John Doe summons litigation

    UBS welcomes the announcement that the US and Swiss governments have agreed to negotiations for the purpose of resolving the John Doe summons litigation.

    This agreement has resulted in a joint motion by the US government and UBS, with the support of the Swiss government, for a stay of the litigation in Miami for a duration of 15 days in order to achieve a settlement. The parties and the Swiss government will present this motion for the court's approval on Monday morning.

June 2009

  1. CHF 3.8 billion placement of new shares from authorized capital

    Notice to Investors in the United States
    This press release does not constitute an offer of securities for sale in the United States of America. Securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States of America absent registration or an exemption from registration thereunder.

    Notice to Investors in the European Economic Area
    No action has been or will be taken in any member state of the European Economic Area which has implemented the EC Directive 2003/71/EC of the European Parliament and of the Council dated November 4, 2003 (the "Prospectus Directive") (each a "Relevant Member State") that would permit a public offering of the securities described herein, or the distribution of a prospectus or any other offering material relating to such securities in any Relevant Member State. In particular, no prospectus within the meaning of the Prospectus Directive and/or the laws implementing the Prospectus Directive in the Relevant Member State has been or will be filed with or approved by the competent authorities of any Relevant Member State in connection with such securities for publication within such Relevant Member State or notification to the competent authorities in another Relevant Member State. Accordingly, if any offer or sale of the securities described herein or any distribution of offering material constituted a public offer in any Relevant Member State it may violate the provisions of laws implementing the Prospectus Directive in such Member State unless certain exceptions set forth in the Prospectus Directive have been fulfilled and these exceptions have been implemented in the Relevant Member State. For the purposes of this provision, the expression an "offer of securities to the public" in relation to the securities described herein in any Relevant Member State means a communication to persons in any form and by any means presenting sufficient information on the terms of the offer and the securities to be offered so as to enable an investor to decide to purchase or subscribe the securities, as the same may be varied in that Relevant Member State by any measure implementing the Prospectus Directive.

    Notices to Investors in the United Kingdom
    In the United Kingdom, this press release is directed only at (a) persons who have professional experience in matters relating to investments who fall within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (b) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). In the United Kingdom any person who is not a relevant person should not act or rely on this press release or any of its contents. Any investment or investment activity to which this press release relates is available in the United Kingdom only to relevant persons and will be engaged in only with such persons.

  2. UBS provides an update on its current trading performance

    Based upon preliminary results for April and May and estimated results for June, UBS expects to incur a net loss for its second quarter 2009. The majority of the expected loss is attributable to own credit and the restructuring charges that have already been announced. The operating result for the quarter is expected to represent an improvement compared with the first quarter of 2009, largely attributable to better market conditions affecting the Investment Bank and a reduction in losses and write downs on legacy risk positions.

  3. UBS appoints Chi-Won Yoon as Chairman & CEO, Asia Pacific

    UBS today announced the appointment of Chi-Won Yoon as Chairman & CEO of Asia Pacific and as member of UBS's Group Executive Board, with immediate effect. Yoon succeeds Rory Tapner who, after 25 years, is leaving UBS.

May 2009

  1. UBS restates 2008 annual report

  2. UBS reports a first quarter loss of CHF 2.0 billion; quarter-end BIS tier 1 ratio of 10.5%

    UBS reports a first quarter loss of CHF 1,975 million.

April 2009

  1. Publication of adjusted figures and timeseries reflecting UBS's new organizational structure

    On 10 February 2009, UBS announced a reorganization of its global wealth management and Swiss business banking businesses. Global Wealth Management & Business Banking has been divided into two new business divisions: Wealth Management & Swiss Bank and Wealth Management Americas. The organizational change includes the transfer of a small number of employees from Corporate Center to Wealth Management & Swiss Bank.

    Comparative periods have been adjusted to reflect these changes which affected Wealth Management & Swiss Bank, Wealth Management Americas and the Corporate Center figures. A full set of timeseries can be found on www.ubs.com/investors. The numbers contained in these adjusted timeseries are unaudited.

  2. UBS names Alex Wilmot-Sitwell and Carsten Kengeter as co-CEOs of its Investment Bank

    UBS today announced the appointment of Alex Wilmot-Sitwell and Carsten Kengeter as co-CEOs of its Investment Bank effective immediately.

    Alex Wilmot-Sitwell joined the firm in 1996 and is a member of the Group Executive Board. He has been joint global head of the Investment Banking Department since November 2005 and Chairman and CEO of UBS Group Europe, Middle East & Africa (EMEA) since January 2008.

    Carsten Kengeter joined UBS in September 2008 and is the joint global head of Fixed Income, Currencies and Commodities (FICC) within UBS Investment Bank. In his new role he will also be a member of the Group Executive Board.

    Oswald J. Grübel, Group CEO of UBS, commented on the appointments: "I would like to congratulate Alex and Carsten on their new roles. Under their joint leadership we will continue to build on the strong core businesses of our Investment Bank and remediate our legacy risks. Our Investment Bank is indispensable to our global firm and to our integrated business model."

    Jerker Johansson has resigned from his role as CEO of the Investment Bank with immediate effect. He joined UBS in March 2008 and was a member of UBS's Group Executive Board.

    "I would like to thank Jerker for his great efforts and his valuable contribution to the repositioning of our Investment Bank," Grübel said.

  3. UBS sells its Brazilian operation "UBS Pactual" for approximately USD 2.5 billion (CHF 2.8 billion)

    Today, UBS announces that it has agreed to sell its Brazilian financial services business, UBS Pactual, for approximately USD 2.5 billion to BTG Investments, headed by André Esteves.

  4. Annual General Meeting of UBS AG

    At the Annual General Meeting (AGM) on 15 April 2009, UBS AG shareholders approved the annual report and the Group financial statements for 2008, agreed to offset the loss for the year against reserves and re-affirmed Ernst & Young, Basel, as auditor, and BDO Visura, Zurich, as special auditor. In addition, shareholders approved the principles and fundamentals of the new compensation model for 2009 in an advisory vote with 87.65% of votes cast.

  5. UBS names Ulrich Körner as Group COO and CEO of Corporate Center

    As UBS announced today, the Board of Directors appointed Ulrich Körner Group Chief Operating Officer (Group COO) and CEO of Corporate Center. In this newly created role, he will be a member of the Group Executive Board and the Group Executive Committee of the bank.

    Ulrich Körner (1962), a German-Swiss dual citizen, has been with Credit Suisse since 1998 and has served as a member of the executive management of the Credit Suisse Group for the last five years. He held various management positions, including CFO and COO of Credit Suisse. Most recently, he was responsible for the entire Swiss client business as CEO of the Switzerland region. Ulrich Körner received a PhD from the University of St. Gallen in business administration and served several years thereafter as an auditor and management consultant, primarily for financial services firms. He is married and the father of three children.

    In addition to his success in the management of client businesses, Ulrich Körner has considerable experience in restructuring and integrating corporate structures and processes as well as an acknowledged track record as a turnaround manager. In his new function he will be responsible for the service units centralized in Corporate Center as well as for the cross-divisional departments and projects of UBS. In addition, he will support the Group CEO and the CEOs of UBS's business divisions with the development and implementation of strategy.

    Walter Stuerzinger, currently Chief Operating Officer of Corporate Center, will leave the Group Executive Board. He has committed himself to supporting the Group COO with the development of Group-wide measures to enhance profitability and cost efficiency.

    Oswald J. Grübel, Group CEO, said: "Ulrich Körner brings, in addition to comprehensive managerial and banking know-how and client business knowledge, extensive expertise in the relevant processes, systems and technologies. In addition he possesses a critical mindset and sharp intellect. I am convinced that he will be a valuable addition to our management team."

    Central service unit within Corporate Center
    UBS will streamline processes and decision-making by bundling all group-wide service and infrastructure units within its Corporate Center. This comprises Procurement and Real Estate and Facility Management as well as personnel management. The IT units of the business divisions will likewise be consolidated at the group level with the already centralized IT infrastructure unit. This step creates the potential for sustainable efficiency increases and cost savings. Under the leadership of the new Group COO, the corresponding management and organizational structure will be immediately revised and implemented in an ongoing manner.

    Integrated management of control functions
    At the same time UBS is strengthening the management of its finance and risk control as well as its legal and compliance functions at the group level. Effective immediately, the corresponding units in the business divisions will report to the Group Chief Financial Officer, the Group Chief Risk Officer and the Group General Counsel respectively. Certain standardized processes and tasks that are currently performed by the business divisions will be consolidated group-wide. By centralizing management and responsibilities and consolidating processes and systems, the control functions of UBS will become stronger and more effective.

March 2009

  1. UBS to buy back outstanding bonds in a public tender offer

    UBS today announces that it is making a tender offer relating to four lower tier 2 bonds with maturity dates between November 2015 and September 2019 and a notional value of around CHF 7 billion. The maximum size of the tender is approximately EUR 1 billion.

    The four subordinated notes targeted in this transaction currently trade at a significant discount to their original issuance price. If the transaction proceeds as expected, it would have a small beneficial effect on UBS's Tier 1 regulatory capital ratio.

    The tender period will end on March 25.

  2. Agenda for the annual general meeting of UBS AG on 15 April 2009

    UBS AG today sent the agenda for the annual general meeting (AGM) of UBS AG on 15 April 2009 to its shareholders. The agenda items are as follows:

February 2009

  1. UBS appoints Oswald J. Grübel as Group Chief Executive Officer

    The Board of Directors of UBS has appointed Oswald J. Grübel as its new Group Chief Executive Officer with immediate effect. Mr. Grübel succeeds Marcel Rohner who has resigned.

    Oswald Grübel's broad experience in the banking sector, and in leading a financial services company through transformation, will be invaluable to UBS in this challenging environment. With his previous employer Credit Suisse, Mr. Grübel was the architect of a successful turnaround and restored confidence in the company in turbulent times. During his career of almost forty years at Credit Suisse, he held various management positions both on Group level and in the investment banking and private banking areas. From 2003 until spring 2007, he was Co-CEO and CEO of Credit Suisse.

    Peter Kurer, Chairman of UBS: With his indisputable leadership qualities, combined with his extensive expertise, Oswald Grübel brings the ideal skill set to recreate value, together with our management team, for our shareholders and clients. He will also be adept in balancing our focus on prudent risk taking and client confidence, and our goal to position UBS for future success."

    Oswald J. Grübel, Group Chief Executive Officer of UBS: I am convinced that the Swiss financial centre requires the presence of more than one big global bank. The opportunity to lead UBS with its unique client franchise in wealth management, investment banking and asset management in these extraordinary times presents a fascinating, yet formidable challenge to me. Together with our 77,000 dedicated employees, I will do all I can to bring UBS back on a profitable, successful track."

    Peter Kurer: "In early January 2009, Marcel Rohner informed the Board of Directors of his intention to retire as Group CEO after the conclusion of the then ongoing Investment Bank repositioning and Wealth Management restructuring phase. During his career at UBS, and especially since his appointment as Group CEO, Marcel Rohner has shown a tremendous commitment to our clients, shareholders and employees. We are extremely grateful for his contributions."

  2. Reaction of UBS regarding today's communiqué from the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg

    UBS took notice of today's communiqué from the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg. UBS does not believe the CSSF is correct.

    The Luxalpha fund was created at the explicit request of wealthy clients who requested a tailor-made fund to enable them to continue investing their assets with Madoff. These clients were represented by sophisticated financial institutions being fully aware of the nature of the investments. These investors, their advisors and the CSSF were informed about the fact that the sole purpose of Luxalpha was to enable the funds to be invested with Madoff. The fund documentation made it very clear that UBS (Luxembourg) SA was not expected to be responsible for the safekeeping of the assets. The fund documentation contained an explicit waiver to that effect. UBS does not have responsibility to these shareholders for the unfortunate results of the Madoff scandal.

    The communiqué from the CSSF has no impact on UBS's Wealth Management clients in Luxembourg or on UBS's Luxembourg funds.

  3. UBS Intends to Challenge Enforcement of IRS "John Doe" Summons

    UBS AG (UBS) announced today that the U.S. Internal Revenue Service (IRS), as was expected, has commenced a civil action in the U.S. District Court for the Southern District of Florida seeking judicial enforcement of a civil "John Doe" summons that was served upon UBS in July 2008.

  4. UBS settles US Cross-Border Case with the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC)

    Today, UBS announced that it has entered into a Deferred Prosecution Agreement (DPA) with the US Department of Justice (DOJ) and a Consent Order with the Securities and Exchange Commission (SEC).

    As part of these settlement agreements:

  5. Preparing UBS for the new market environment

    The Board of Directors and Group Executive Board of UBS have accelerated the process of focusing the bank on its client businesses to ensure long-term sustainable profitability.

    Peter Kurer, Chairman, said: "With our announcements we are emphasizing the importance of our core business in Switzerland, which will be much better represented in our leadership and governance going forward. In addition, we are showing our willingness to further invest in our industry-leading global Wealth Management business. The Board of Directors and the Group Executive Board are also renewing their full commitment to our Investment Bank. Over the last few months its business model has been completely refocused with a view to be managed in line with the requirements of the new banking landscape. Our Global Asset Management division is also well positioned to respond to market developments."

    Over the past 18 months UBS has aggressively managed the challenges of the financial crisis. UBS raised capital from private investors and from the Swiss government, reduced its cost basis, continuously reduced its balance sheet and substantially reduced its positions in troubled securities, including through the transaction with the Swiss National Bank (SNB). Furthermore, UBS has strengthened its governance, improved risk controls, streamlined its management structure and introduced an innovative, forward-looking compensation model.

    Marcel Rohner, Group CEO, said: "The conditions for the financial industry have changed and will remain different for the foreseeable future. We have adjusted our businesses such that they are best positioned to be profitable and to grow sustainable earnings in a new environment."

    Changes in Global Wealth Management and Swiss banking

    With immediate effect, UBS will establish two new business divisions: Wealth Management & Swiss Bank, comprising all non-American wealth management businesses as well as the Swiss private and corporate client business, and Wealth Management Americas.

    "The formation of the two new divisions will help to re-build our reputation and recognition. Management will focus on their specific strategic challenges which, among others, are changes in client behavior, new market dynamics and a tight regulatory environment," Marcel Rohner commented. "We will broaden the wealth management representation at the Group Executive Board level and, particularly, elevate the profile of the highly profitable and dependable Swiss business," Rohner added.

January 2009

  1. UBS Investment Bank Enters into Agreement with AIG to Acquire the Commodity Index Business of AIG Financial Products Corp

    The Equities business of UBS Investment Bank announced today that it has entered into a binding agreement to purchase the commodity index business of AIG Financial Products Corp, including AIG's rights to the DJ-AIG Commodity Index. This commodity index business is comprised of a product platform of commodity index swaps and funded notes based on the benchmark Dow Jones-AIG Commodity Index (DJ-AIGCI).

    The purchase price for the transaction is $15 million, payable upon closing, and additional payments of up to $135 million over the following 18 months based upon future earnings of the purchased business. The closing is subject to a number of regulatory and other conditions. No assurances can be given that any such conditions will be satisfied.

    The transaction is expected to close by May 2009.

December 2008

November 2008

  1. UBS AG Extraordinary General Meeting

    98.53% of voting UBS shareholders approved today the creation of conditional share capital for the issuance of mandatory convertible notes in the amount of CHF 6 billion to the Swiss Confederation.

    2,395 shareholders attended the Extraordinary General Meeting in Lucerne, representing 993,568,667 votes.

  2. New UBS compensation model

  3. Statement On Indictment Of UBS Executive

    UBS confirmed today that Raoul Weil, Chairman and CEO of UBS Global Wealth Management and Business Banking and a member of the Group Executive Board, has been indicted by a Federal grand jury sitting in the Southern District of Florida in connection with the ongoing investigation of UBS's US cross-border business by the United States Department of Justice. Raoul Weil was previously head of UBS Wealth Management International from 2002 to 2007.

    Mr. Weil has determined that, in the interest of the firm and its clients, and in order to defend himself, he will relinquish his duties at this time pending the resolution of this matter. On an interim basis, Marten Hoekstra, currently Deputy CEO of Global Wealth Management & Business Banking and Head of Wealth Management US, will assume Mr. Weil's duties.

    As announced on July 17, 2008, UBS will cease providing cross-border private banking services to US-domiciled clients through its non-US regulated units. UBS is fully committed to continuing its efforts to cooperate with the investigation of its US cross-border business and to working in a responsible manner with all relevant authorities towards a satisfactory resolution of this matter.

  4. Agenda for the Extraordinary General Meeting of UBS AG on 27 November 2008

    The following item will be on the agenda of UBS AG's previously announced Extraordinary General Meeting, taking place on 27 November 2008:

    Status Report of the Board of Directors and Report on Compensation
    The Chairman of the Board of Directors will report on the UBS Review of Compensation:
    (i) Review of existing compensation systems
    (ii) Changes to compensation programs
    (iii) Issue of repayment of previously granted incentive awards

    The Board of Directors will make this status report for information purposes and outside of the agenda items of the Extraordinary General Meeting. No resolution will be adopted under this item.

    Item 1
    Mandatory Convertible Notes
    Creation of Conditional Capital
    Approval of Article 4a para. 4 of the Articles of Association

    Broadcast on the Internet
    The Extraordinary General Meeting will be broadcast on the Internet via www.ubs.com/egm.

    The Extraordinary General Meeting of UBS AG will take place on Thursday, 27 November 2008 at 9:00 a.m. in the Messe Luzern AG, Halle 1, Horwerstrasse 87, Lucerne.

  5. UBS names Philip Lofts Group Chief Risk Officer

    UBS today announced that Philip Lofts has been named Group Chief Risk Officer and a member of the Group Executive Board, effective immediately. Lofts replaces Joseph Scoby, who has decided to return to his former role as Global Head of Alternative and Quantitative Investments (A&Q) within UBS Global Asset Management.

    Lofts most recently served as Deputy Group Chief Risk Officer and Group Risk Chief Operating Officer. A 20 year veteran of UBS, he was previously Group Chief Credit Officer and has held a variety of risk control positions in Europe, the US and Asia-Pacific.

    Marcel Rohner, Group Chief Executive Officer said, "Philip's long history in risk control and deep knowledge of UBS make him extremely qualified to lead UBS's risk organization and continue to enhance our risk management, control and reporting frameworks and processes."

    Scoby, who will step down from the Group Executive Board with immediate effect, has served as Group Chief Risk Officer since October 2007.

    Rohner continued, "We are very grateful to Joe for his instrumental role in reducing our risk positions and increasing the transparency of our portfolio over the last 12 months. He has successfully led our risk control function through a period of exceptional market difficulty and created a new risk organization that will serve us well in the future."

October 2008

  1. UBS further materially de-risks balance sheet through transaction with Swiss National Bank

    UBS to raise CHF 6 billion of new capital through mandatory convertible notes, fully placed with Swiss Confederation

    The Swiss National Bank (SNB) and UBS have reached an agreement to transfer up to USD 60 billion of currently illiquid securities and other assets from UBS's balance sheet to a separate fund entity.

    With this transaction, UBS caps future potential losses from these assets, secures their long-term funding, reduces its risk-weighted assets, and materially de-risks and reduces its balance sheet.

    This transaction allows the SNB and shareholders of UBS to participate in the recovery potential of the entity's assets once the loan is fully repaid.

    The solution significantly reduces the uncertainty for UBS shareholders and clients and contributes to the stability of the financial system by ensuring an orderly sale of these assets.

    The fund will be capitalized with up to USD 6 billion of equity capital provided by UBS and a non-recourse loan in the maximum amount of USD 54 billion provided to the fund by the SNB. The entity will be controlled by the SNB. UBS will sell its equity interests to SNB for USD 1 and will have an option to repurchase the equity once the loan is fully repaid for a purchase price of USD 1 billion plus half of the equity value exceeding USD 1 billion.

    To fund its equity contribution, and at the same time maintain its strong capital position, UBS can raise CHF 6 billion of new capital in the form of mandatory convertible notes (MCN). The MCN has been fully placed with the Swiss Confederation.

  2. UBS announces repositioning of its Investment Bank

    Business model builds on core strengths and client franchises in the Securities and Advisory businesses, while downsizing or exiting certain businesses; recalibration to the market environment.

    UBS today announces the repositioning of its Investment Bank following a detailed review of the strategy by the Chairman and CEO of the Investment Bank, Jerker Johansson, members of the Group Executive Committee and the UBS Board of Directors.

    The Investment Bank will reprioritize its business portfolio to preserve its core strengths and client franchises across Equities, IBD and FICC, while downsizing or exiting certain business activities. This will lead to greater efficiencies and a further reduction in the Investment Bank's headcount and balance sheet.

    "The ongoing crisis in the financial markets and dramatically changed industry dynamics require us to recalibrate our business. While the revenue outlook is uncertain, these measures will allow us to focus on our strengths, reduce the cost base to a more sustainable level and position our core businesses for growth once fundamentals improve," said Jerker Johansson, Chairman and CEO of UBS Investment Bank.

    Strategic priorities

    As part of the repositioning, UBS Investment Bank will take the following steps:

  3. UBS AG Extraordinary General Meeting

    At the UBS Extraordinary General Meeting on 2 October 2008, shareholders elected Sally Bott, Rainer-Marc Frey, Bruno Gehrig and William G. Parrett to the Board of Directors. Election results indicated that Sally Bott, received 98.58 percent of the votes cast, Rainer-Marc Frey 98.74 percent, Bruno Gehrig 98.89 percent and William G. Parrett 98.62 percent.

    The curriculum vitae of all board members are available at www.ubs.com/bod.

    UBS shareholders also passed the new Corporate Governance statutes proposed on 1 July 2008, with 99.27 percent of votes cast.

    2,372 shareholders attended the Extraordinary General Meeting, representing 942,070,054 votes.

  4. UBS holds EGM: key messages from Chairman

    At the Extraordinary General Meeting in Basel today, UBS Chairman Peter Kurer will give a speech highlighting the following key messages:

September 2008

  1. UBS names Jeffrey Mayer Joint Global Head of Fixed Income, Currencies and Commodities

    UBS today announced the appointment of Jeffrey Mayer as Joint Global Head of the Fixed Income, Currencies and Commodities (FICC) business within its Investment Bank. With the recently announced Joint Global Head of FICC Carsten Kengeter, he will have responsibility for all fixed income products including credit fixed income, rates, structured products, emerging markets, foreign exchange, commodities, securitized products, client coverage and research.

    Mayer, 49, will be based in New York and Stamford and report to Jerker Johansson, Chairman and Chief Executive Officer of UBS Investment Bank. Mayer will also join the Investment Bank Executive Committee and the UBS Group Managing Board.

    "Jeff's experience leading a global fixed income operation, deep product knowledge and proven ability to manage risk will be a great asset to the business," said Johansson. "Given UBS's wide geographic footprint and the range of products within FICC, we are pleased to have both Jeff and Carsten on board leading the business."

    A 19-year veteran of Bear Stearns, Mayer was most recently Global Co-Head of Fixed Income and a member of Bear Stearns Management Committee. Mayer was additionally a member of the Board of Directors of Bear Stearns and Co., Inc. Prior to becoming Co-Head of Fixed Income in 2002, he headed Bear Stearns' mortgage and asset-backed securities department. He began his career at Bear Stearns as a senior mortgage trader.

  2. UBS says costs of closing out LEH exposures below $300m

    UBS is aware of a recent research report circulating in markets regarding its exposure to the Chapter 11 filing by Lehman Brothers. UBS confirms that its direct and counterparty exposures to Lehman Brothers, net of hedges, are now substantially closed out. UBS does not expect the total cost of closing out its exposures to Lehman Brothers to exceed $300m.

  3. Agenda for the Extraordinary General Meeting of UBS AG on 2 October 2008

    The following items will be on the agenda of UBS AG's previously announced Extraordinary General Meeting, taking place on 2 October:

    Status Report of the Board of Directors

    Agenda Item 1

    Elections of New Members of the Board of Directors

    1.1. Sally Bott
    1.2. Rainer-Marc Frey
    1.3. Bruno Gehrig
    1.4. William G. Parrett

    Agenda Item 2

    Amendments to the Articles of Association

    Adjustment to the new UBS corporate governance effective as of 1 July 2008 (Title of Article 20, Articles 20 para. 1, 21 para. 2, 24 lit. e, 29 and 30 of the Articles of Association)

    The Extraordinary General Meeting of UBS AG will take place on Thursday, 2 October 2008 at 10:30 a.m. in the St. Jakobshalle in Basel.

    www.ubs.com/shareholder-meeting

  4. UBS Names Carsten Kengeter Global Head of Fixed Income, Currencies and Commodities

    UBS today announced the appointment of Carsten Kengeter as Global Head of the Fixed Income, Currencies and Commodities (FICC) business within its Investment Bank. Kengeter will join UBS from Goldman Sachs and will relocate from Hong Kong to London in his new role. He will report to Jerker Johansson, Chairman and CEO of UBS Investment Bank, and will join the Investment Bank Executive Committee and the UBS Group Managing Board.

    Kengeter, 41, will be responsible for all fixed income products including credit fixed income, rates, structured products, emerging markets, securitized products as well as client coverage and research. He will also have responsibility for UBS Investment Bank's market-leading foreign exchange business and the global commodities group. When he joins the firm in the early part of 2009, Kengeter will assume the leadership of FICC from Johansson, who will continue to manage the business on an interim basis until then.

    "Carsten is a high-caliber leader who brings broad geographic and product expertise to the firm as well as a depth of experience and skill set which greatly complements our FICC management team," said Johansson. "We will continue to build on our bench of senior talent as we move towards our goal of strengthening our fixed income business and getting all our FICC businesses back on the road to profitability and competitiveness."

    Kengeter has most recently been a Partner and Co-Head of Goldman Sachs' Securities Division for Asia ex-Japan, with responsibility for all FICC products. He joined Goldman Sachs in 1997 and has held several senior positions within the Securities Division including Head of FICC for the German region and Co-Head of European FICC Distribution. Previously, Kengeter worked at Barclays de Zoete Wedd as a credit derivatives trader and structurer.

    "We have already taken significant steps to streamline the business and this hire underscores our commitment to focusing on core client-centric product offerings," added Johansson. "I am confident that under this new leadership FICC will be best positioned to thrive in an evolving market and we will continue to offer our clients the best service and solutions."

    Kengeter served on the board of Goldman Sachs International Bank as well as a broad number of the firm's Asian boards and committees. He holds a Diplom-Betriebswirt from FH Reutlingen, a B.A. (hons) in Business Administration from Middlesex University as well as a MSc in Finance and Accounting from the London School of Economics.

    Media Contacts:

    London: Dominik Von Arx, +44 207 56 82439
    New York: Rohini Pragasam, +1 212 882 5690

August 2008

  1. UBS appoints new Chief Communication Officer

    UBS appoints Michael Willi Chief Communication Officer. In his new role Michael Willi will report to the Group CEO and bear global responsibility for UBS corporate and brand communications. He will head up the areas of Communications Management, Media Relations, Internal Communications and Brand Management. Financial communications will now be part of the Group Chief Financial Officer function. Michael Willi succeeds Tom Hill, who will take over responsibility for Group Strategic Advisory and Financial Communications, reporting to the Group CFO.

    Michael Willi is an economist who began working at Swiss Bank Corporation in 1992. Since then he has served in various executive functions within UBS corporate communications. Most recently he headed the worldwide Corporate Communications Management Organization out of New York, USA.

  2. UBS announces repositioning of the Bank to allow maximum strategic flexibility in its future development

    UBS will separate its business divisions into three autonomous units and vest them with increased operational authority and accountability.

  3. UBS announces Board of Directors nominations and appointments to the Group Executive Board

    Sally Bott, Rainer-Marc Frey, Bruno Gehrig and William G. Parrett proposed as candidates for election to the Board of Directors of UBS AG at the EGM of 2 October 2008.

  4. UBS announces comprehensive settlement, in principle, for all clients holding auction rate securities at the estimated cost of USD 900 million

    UBS announced today a settlement, in principle, with the New York Attorney General (NYAG), the Massachusetts Securities Division, the Securities and Exchange Commission (SEC) and other state regulatory agencies represented by North American Securities Administrators Association (NASAA) to restore liquidity to all remaining clients' holdings of auction rate securities (ARS).

    Under the agreement in principle, UBS has committed to purchase a total of USD 8.3 billion of ARS, at par, from most private clients during a two-year time period beginning January 1, 2009. Private clients and charities holding less than USD 1 million in household assets at UBS will be able to avail themselves of this relief beginning Oct. 31, 2008. From mid-September, UBS will provide loans at no cost to the client for the par value of their ARS holdings.

    In addition, UBS has also committed to provide liquidity solutions to institutional investors and will agree from June 2010 to purchase all or any of the remaining USD 10.3.billion, at par, from its institutional clients. Today's news is in addition to the firm's recently announced intention to repurchase USD 3.5 billion of tax-exempt Auction Preferred Stock.

    "Today's solution provides further relief, beginning in September, to investors who have been understandably frustrated by the industry-wide failure of the ARS market. Our leading position in supporting the market and providing liquidity is clear, and now, we are the first firm to give all clients -- private, corporate and institutional the opportunity to be made whole," said Marten Hoekstra, Head of UBS Wealth Management Americas.

    "Since the breakdown in the market, UBS clients have been offered multiple liquidity options. They have been able to borrow 100 percent against the value of their holdings. The solutions announced today provide our clients with the widest range of choices in the industry, including a two-year window during which clients can either continue to earn interest or redeem their ARS at any time," Hoekstra added.

    The firm has also agreed to pay a fine of USD 150 million - USD 75 million to the state of New York and USD 75 million to other state regulatory agencies. UBS neither admits nor denies allegations of wrongdoing.

    The full cost of the proposed settlement, taking into account the projected redemption patterns of clients, the difference between the purchase prices and the current market value of client ARS holdings, and the regulatory fine related to the settlements, is estimated to be in the range of USD 900 million on a pre-tax basis, to be booked in the second quarter results. This includes reimbursements to all clients for losses incurred from sales of ARS holdings between Feb. 13 and Aug. 8, 2008.

    A provision for the costs of this settlement will be included in the firm's second quarter financial results, which will be announced on Aug.12, 2008.

    Results, including this settlement, for UBS AG for the second quarter will be consistent with guidance given by the firm on July 4, 2008.

July 2008

  1. UBS is developing a structure to offer to repurchase from UBS clients auction preferred stock issued by tax-exempt closed-end funds

    These offers, if consummated, are intended to be financed by the net proceeds of remarketed preferred securities to be issued in one or more private placements by a newly-created Trust. This Trust will be controlled by UBS and will be consolidated in UBS's consolidated financial statements. The Trust Preferred will pay a dividend rate that will reset based on weekly remarketings performed by a designated remarketing agent. The Trust Preferred will be supported by a Liquidity Put or similar demand feature provided by UBS or another highly rated bank. It is anticipated that the Trust Preferred and the accompanying Liquidity Puts will be eligible for investment by money market funds.

    Auction preferred stock is a preferred equity security that pays dividends that are reset by an auction typically held every seven or 28 days. These auctions have consistently been failing since February 2008. Consequently, many holders desiring to sell these securities, including UBS clients, have been unable to do so, although dividends continue to be paid at pre-determined maximum rates. On July 15, 2008, UBS clients held an aggregate of approximately $3.5 billion of auction preferred stock issued by registered closed-end tax-exempt funds in their UBS accounts (valued at liquidation preference).

    The proposed structure, and the proposed offer to UBS's clients, are intended to be fully supportive of ongoing industry efforts to resolve liquidity issues regarding auction preferred stock.

    UBS clients who elect not to sell their auction preferred stock in the proposed offer would retain their ability to sell in connection with implementation of any prospective industry proposals referred to above, as part of any redemptions by the issuing funds or in secondary market transactions. However, there can be no assurance when, or if, any of these alternatives will be available to holders of auction preferred stock.

    UBS has been working on developing the proposed structure for several months. Implementation is subject to a number of factors, including compliance with all applicable legal requirements. UBS has sought and obtained guidance from the Department of the Treasury as to certain tax considerations. In addition, UBS is engaged in substantive on-going discussions with the staff of the Securities and Exchange Commission regarding certain aspects of the proposed structure, and has recently met with the staff to discuss its request for regulatory guidance. UBS expects that offers to purchase the auction preferred stock from its clients will commence within approximately 30 days of resolving these regulatory issues. However, there can be no assurance that these regulatory issues will be resolved.

    This announcement is not an offer to purchase auction preferred stock from any holder thereof. Any such offer will be made only to UBS clients and only by a delivery of a document to the UBS clients containing detailed descriptions of the terms and conditions of the offer. If made, acceptance of that offer will be subject to compliance with the terms and conditions set forth in the offer documentation.

    The Trust Preferred Securities and related Liquidity Puts will not be registered under the Securities Act of 1933 or any state securities laws, and will not be able to be offered or sold in the United States absent such registration or the perfection of an exemption therefrom. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities.

  2. UBS significantly expands Middle East operations to accelerate growth.

    UBS today unveils a number of key measures aimed at significantly boosting the firm's already rapid growth in the Middle East. This package of initiatives further demonstrates UBS's long-term commitment to the Middle East and will help achieve its goal of becoming one of the region's leading financial services providers.

    UBS to set up operations in the Kingdom of Saudi Arabia.
    UBS is delighted to announce that it has been granted conditional authorisation by the Capital Markets Authority (CMA) to set up operations in the Kingdom of Saudi Arabia.

    John Fraser, Chairman and CEO of UBS Global Asset Management and Group Executive Board member will also become Chairman of UBS Saudi Arabia, and Mohammed Al Dhoheyan, currently CEO of the Development and Management House for Investments (an existing CMA regulated firm), will assume the role of Vice Chairman.

    Commenting on this announcement John Fraser said: "With over 40 years' experience in the region our decision to set up operations in the Kingdom of Saudi Arabia is further evidence of UBS's long-term commitment to the Middle East and marks yet another important milestone for the firm in this very exciting and significant market."

    "The CMA approval gives us the opportunity to extend our world leading position in wealth management in the region, but also brings us closer to our asset management and investment banking clients in the Kingdom of Saudi Arabia", Mr Fraser continued.

    Following the final approval of the CMA and other relevant authorities, UBS Saudi Arabia plans to open by year end. In line with its integrated business model, UBS Saudi Arabia will focus on UBS's global core securities businesses offering international and domestic clients comprehensive Wealth Management, Asset Management and Investment Banking services.

    UBS selects CEO for UBS Saudi Arabia.
    UBS is also pleased to announce that it is proposed that Mohamed Sammakia will become CEO of UBS Saudi Arabia subject to receiving the usual regulatory approvals.

    Currently a Managing Director in UBS's Fixed Income division and President of the Middle East Region based in London, Mohamed's longstanding career within the Middle East and North Africa spans more than 30 years. Mohamed has a proven track record and been instrumental in numerous high profile UBS deals in the region.

    In his new role, Mohamed will be responsible for setting up UBS's new operations in the Kingdom of Saudi Arabia as well as focusing on the continued expansion of UBS's successful platform throughout the region. As part of this, he will build on his extensive and long-serving relationships in the region to develop cross-business opportunities to maximise revenue growth and profitability in the Middle East.

    Commenting on the appointment John Fraser said: "I am delighted that Mohamed has agreed to take on this key role. He has an impressive history of working with key decision makers in the Middle East which together with his 30 year long career within the financial sector makes him ideally suited for this pivotal role in the region".

    UBS applies for license to operate in Qatar.
    UBS has made an application to the Qatar Financial Centre Regulatory Authority for a licence to open and operate a branch in the Qatar Financial Centre. This will not only further the firm's strategy of increasing its footprint in the Middle East but will also provides UBS with access to the many opportunities within Qatar, which has both the highest GDP per capita in the world and one of the highest rates of economic growth.

    UBS expands Investment Banking Division (IBD) & Equity Research coverage in the region.
    As part of its long term expansion in the Middle East UBS also announces today that it plans to:
    • Expand its regional IBD team - having recently appointed Christopher Niehaus as Joint Head of Investment Banking MENA - by more than double by end of 2008;
    • Establish regional coverage of Middle East stocks out of the UAE by end 2008 - UBS recently initiated economic coverage of the UAE via the European Economics Research Team in London.

    In another recent development in the region, UBS Global Asset Management joined forces with Abu Dhabi Investment Company in February 2008 to form a 50/50 joint venture to develop, promote, and manage infrastructure funds focused on the MENA region. The joint venture's first fund "ADIC-UBS Infrastructure Fund I" will be a USD 500 million fund which is expected to launch during 2008.

    In addition, UBS Wealth Management was voted Number 1 for "Best Private Banking" services in the Middle East while UBS Investment Bank was awarded "Best Equity House" in the Middle East in Euromoney's 2008 rankings.

  3. UBS announces estimated results for second quarter

    UBS announces that its results for the second quarter ended June 30, 2008, which will be released as planned on August 12, are likely to be at or slightly below break-even.

  4. UBS establishes new Corporate Governance and calls an Extraordinary General Meeting to elect four new members to the Board of Directors

    • New Corporate Governance guidelines to come in to force immediately

    • Stephan Haeringer, Rolf Meyer, Peter Spuhler and Lawrence Weinbach to resign in October 2008

    • Extraordinary General Meeting (EGM) scheduled for 2 October 2008

    • Nominations of the new Board members to be announced in good time before the EGM

    • Sergio Marchionne to become Senior Independent Director and to continue as non-executive Vice Chairman


June 2008

  1. UBS to enter Dutch wealth management market together with VermogensGroep

    UBS announces today that it has signed an agreement with VermogensGroep, an independent Dutch Wealth Manager, to acquire VermogensGroep. This joining of forces will create one of the premier Wealth Management firms in the Netherlands. Closing of the transaction remains subject to regulatory approval.

  2. Settlement between Parmalat and UBS

    UBS confirms the settlement today of all actions filed by companies of the Parmalat Group in Extraordinary Administration and by Parmalat S.p.A. against UBS Limited and UBS AG on the terms announced in the media release issued by Parmalat S.p.A. UBS has committed to pay a total of approximately EUR 150 million for the claw back claim and EUR 35 million for the damages claims to Parmalat S.p.A. and the Extraordinary Commissioner pursuant to the terms of the settlement.

  3. UBS AG successfully completes its rights offering

    As part of the ordinary increase of its share capital, UBS AG has issued 760,295,181 new shares with a par value of CHF0.10 each. The subscription price of the new shares was set at CHF 21.00. Subscription rights for 755,466,901 new shares were exercised, representing 99.4% of all new shares offered. 4,828,280 new shares, for which subscription rights were not validly exercised, will be sold by UBS Investment Bank in open market transactions on 13 June 2008..

    Trading in the new shares is expected to commence today on SWX Europe, the New York Stock Exchange and the Tokyo Stock Exchange. Payment and settlement of the new shares is expected to take place on 17 June 2008.

May 2008

  1. UBS AG announces final terms of the announced rights issue

    UBS's Board of Directors approved yesterday an increase in the share capital of UBS AG through the issue of 760,295,181 fully paid-in registered shares with a par value of CHF 0.10 each. Upon completion of the transaction, 2,932,567,127 fully paid-in registered shares with a par value of CHF 0.10 each will be outstanding.

    The Board of Directors has set the subscription price for the new shares at CHF 21.00 per new share, which is expected to translate into gross proceeds of approximately CHF 15.97 billion. The subscription price of CHF 21.00 compares to a closing price of the UBS shares on SWX Europe on 21 May 2008 of CHF 30.64.

    The rights issue has been fully underwritten by a syndicate of banks led by JPMorgan, Morgan Stanley, BNP Paribas and Goldman Sachs.

    Shareholders will be allotted one subscription right for each existing share held at the close of business on 26 May 2008. The exercise of 20 subscription rights entitles the exercising holder to subscribe for 7 new shares against payment of the subscription price.

    Subscription rights will be traded from 27 May 2008 through 9 June 2008 on SWX Europe and the New York Stock Exchange (NYSE). The exercise period for subscription rights held in the SIS SegaIntersettle ("SIS") system will run from 27 May 2008 to 12:00 noon Swiss time on 12 June 2008. The exercise period for subscription rights held in The Depository Trust Company ("DTC") system will run from 27 May 2008 to 5:00 p.m. New York time on 10 June 2008. The Joint Bookrunners, on behalf of the syndicate of banks, may place any new shares which have not been subscribed for through an offering in selected jurisdictions or in open market transactions on or about 12 June 2008.

    It is planned to have the new shares listed on the SWX Swiss Exchange, NYSE and the Tokyo Stock Exchange (TSE). Application has been made for trading in the new shares to commence on SWX Europe, the NYSE and the TSE on 13 June 2008.

    The new shares will be fully fungible with existing shares.

  2. UBS Completes the Sale of USD $15 Billion of U.S. Real Estate Related Assets to BlackRock

    UBS announced today that it has closed on the sale of approximately USD $15 billion of primarily Subprime and Alt-A US residential mortgage-backed securities to a newly created distressed asset fund that will be managed by BlackRock, the global investment management firm.

  3. UBS Announces Senior Management Changes in UBS Investment Bank and Strengthens the Risk Control Function

    UBS Investment Bank
    Within UBS Investment Bank, Daniel Coleman has been appointed Global Head of Equities. John Wall, formerly Co-Head of Global Equities with Coleman, will transition to a new position as Global Head of Proprietary Trading, with responsibility across Equities and Fixed Income. Both Coleman and Wall will continue to report to Jerker Johansson, Chairman and CEO of UBS Investment Bank.

    "Daniel has played an integral role in the development of our market-leading Equities franchise over the past few years and I am confident that he will continue to build on this success," said Johansson. "Having someone with John's trading and risk management expertise will allow us to ensure that our proprietary trading activities are managed in a holistic fashion across the Investment Bank, with the objective of focusing on maximizing our returns on allocated capital."

    In addition, Johansson will assume global responsibility for Fixed Income, Currencies and Commodities (FICC) on an interim basis, following Andre Esteves' decision to step down as Global Head of FICC and focus full-time on his role as Chairman and CEO of UBS Latin America, based in Brazil. Esteves will continue to advise Johansson on the risk management of positions within FICC's Workout Group.

    "Andre led our FICC business during a period of unprecedented market dislocation and has helped us begin the critical repositioning of FICC," added Johansson. "Assuming responsibility for FICC will allow me to get closer to the most complex part of the IB portfolio and directly engage with the leaders in the business to review and further reposition our platform around our core client-facing product capabilities."

    UBS Risk Control
    UBS announced the appointment of Philip Lofts as Group Risk Chief Operating Officer and that Thomas Daula will join the firm in June 2008 as IB Chief Risk Officer. Daula's newly expanded role will include the responsibilities of the IB Chief Risk Officer as well as the IB Chief Credit Officer. Daula was most recently at Morgan Stanley, where he was Chief Risk Officer, and will become a member of the Group Managing Board, reporting jointly to Johansson and Joe Scoby, Group Chief Risk Officer. Lofts was most recently Group Chief Credit Officer for the firm.

    "Tom's deep understanding of both portfolio risks and risk methodology make him a great addition to our team" said Scoby.

    Within the Risk Control function, UBS announced the integration of the monitoring and controlling responsibilities of the Group's Market Risk and Credit Risk functions into a single unit. This new unit, to be called Group Portfolio and Concentration Risk Control, will have responsibility for the monitoring and controlling of the firm's overall risk exposure across credit, market and country risk, as well as performing portfolio analytics on risk evolution at the overall portfolio level.

    "These changes are designed to establish a best in class Risk Control team with an overall view of all risks," added Scoby. "The creation of an integrated portfolio and concentration risk group will help break down any remaining information silos between the different risk functions."

April 2008

  1. UBS Issues Shareholder Report on Write-downs

    UBS announced today that it has issued a Shareholder Report detailing the key facts relating to the firm's positions and losses in the U.S. subprime residential mortgage sector through December 31, 2007. This Report, which provides an overview of a report which was submitted earlier to the Swiss Federal Banking Commission (EBK), is available on UBS' website at www.ubs.com/agm.

    Amongst other things, the Report summarizes: which businesses were affected by the losses; the business models and growth initiatives pursued in those businesses; how the losses developed in the relevant businesses; the implementation of Risk Management and Risk Control in those businesses; and the key findings related to the causes of the losses.

    The Report identifies (and considers the causes of) the losses as originating principally from positions held within three businesses: the (now closed) internal alternative asset management arm, Dillon Read Capital Management (DRCM); the Investment Bank's (IB) Rates business (CDO Warehouse and CDO Super Senior Positions held on the CDO Desk); and the ABS Trading Portfolio managed by the IB's Foreign Exchange/Cash Collateral Trading (FX/CCT) division.

    The report filed with the EBK was prepared by UBS's Group General Counsel and Group Internal Audit. They were assisted by U.S. law firm Sullivan and Cromwell LLP, Swiss law firm Homburger AG and PricewaterhouseCoopers.

    KPMG Ltd, Zurich, has read the Shareholder Report and the Report to the EBK and determined that, in their professional judgement, the Shareholder Report contains a reasonable summary of the information that UBS included in their report to the EBK.

  2. Board of Directors of UBS AG determines exchange ratio for stock dividend

    Based on the decision made by the Extraordinary General Meeting on 27 February 2008 to create authorized capital for the distribution of a stock dividend, the Board of Directors of UBS AG has determined the exchange ratio for the stock dividend at 20:1. Every registered share of UBS AG with a nominal value of CHF 0.10 will be allocated one tradable entitlement. Twenty entitlements give the holder the right to receive one new share of UBS AG with a nominal value of CHF 0.10 for free.

    Every shareholder holding shares of UBS AG on 25 April 2008 after close of business will receive one tradable entitlement for each share held. The entitlements are expected to be traded on SWX Europe from 28 April 2008 up to and including 9 May 2008. Entitlements held after the entitlement trading period will be automatically exchanged into new shares on or around 15 May 2008 at the ratio of 20:1. The first trading day of the new shares created as a result of the stock dividend is expected to be 19 May 2008.

  3. Marcel Ospel will not be standing for re-election to the Board of Directors of UBS.

    Marcel Ospel, Chairman of the Board of UBS, has decided to withdraw his candidacy for re-election to the Board at the Annual General Meeting on 23 April 2008. The Board of Directors has accepted its Chairman's decision with regret. At the same time, the Board proposes that the Annual General Meeting elect Peter Kurer to the Board to succeed Marcel Ospel as Chairman.

    "My willingness to stand for re-election for a further one-year term was based on my desire to lead UBS out of its current difficult situation. We have worked very hard and have been able to address the firm's most pressing problems, thereby laying the foundation for the long-term success of the bank," said Marcel Ospel, Chairman of the Board of the UBS. "I have always stated that I ultimately take responsibility for the bank's situation. With the measures that we have already taken, the proposals we are submitting to the Annual General Meeting and the processes we have put in place to deal with lessons learned, I believe that I have made all necessary contributions. On this basis, I remain very confident in the future prospects of UBS."

    "The events since the summer of 2007 have affected the bank to an unexpected degree and have proved a great challenge for management and for the Board of Directors. Marcel Ospel resolutely led the bank through these difficult times and made a decisive contribution to solving its problems," said Sergio Marchionne, Vice Chairman of UBS. "Over the course of the last ten years Marcel Ospel led UBS to the top of industry rankings. We, inside and outside the Bank, have known him as an outstanding banker. On behalf of the Board I would like to thank him for his tireless efforts in the last few months."

    The Board of Directors proposes to the Annual General Meeting that it elect Peter Kurer, Group General Counsel of UBS, to the Board. It plans to appoint Peter Kurer to succeed Marcel Ospel as Chairman.

    Peter Kurer joined UBS in 2001 as Group General Counsel and has been a member of the Group Executive Board since 2002. The Board of Directors thanks him for his willingness to take over this responsibility.

    This appointment is part of an extensive process, which is already underway, whereby the Board is reviewing the root causes of and lessons learned from its subprime losses. In particular, the Board is thoroughly examining governance, strategy implementation, risk management, monitoring, and control systems, incentive plans and succession planning and is committed to making all necessary adaptations and changes to ensure it establishes best practices in these areas. Peter Kurer will work closely with the Board on these issues, with appropriate interfaces to the Group Executive Board, with a shared, common objective of ensuring that the institution not only implements the appropriate remediation following the current crisis, but also establishes optimal, permanent governance and leadership solutions on which the Bank's future as a leading, global, financial institution can be built.

    "Peter Kurer has a long and distinguished career as a lawyer in private practice and manager of a large legal and compliance function. He also brings a great deal of experience as a member of boards of financial and other firms and has a thorough knowledge of global financial markets and UBS," said Helmut Panke, Chairman of the Nominating Committee of the UBS Board. "The Board believes that this experience will prove most valuable at this juncture"

    "I consider this appointment an honor and great challenge" said Peter Kurer. "I am committed to doing everything I can, in the interests of shareholders, clients, employees and the communities in which we do business, to further help UBS return to success."

  4. Pre-announcement of first quarter 2008 estimated net loss of approximately CHF 12 billion

    To maintain its position as one of the world's strongest and best capitalized banks, UBS announces a rights issue, fully underwritten by four leading international banks, to raise approximately CHF 15 billion. For the first quarter 2008 UBS expects to report a net loss attributable to UBS shareholders of approximately CHF 12 billion after losses and writedowns of approximately USD 19 billion on US real estate and related structured credit positions. In the first quarter, UBS substantially reduced its real estate related positions through both valuation adjustments and significant disposals. UBS also announces the formation of a new unit to hold certain currently illiquid US real estate assets. UBS is confident that these measures will deal effectively with the firm's real estate exposures and allow the bank to focus on strengthening its core operations. Marcel Ospel, Chairman of UBS, will not seek re-election at the Annual General Meeting on 23 April 2008. Peter Kurer, currently General Counsel of UBS, is proposed for election to the Board of Directors and is to succeed Marcel Ospel as Chairman (see separate media release).

March 2008

  1. UBS proposes David Sidwell for election to Board of Directors

    At its Annual General Meeting on 23 April 2008 the UBS Board of Directors will propose David Sidwell for election to the board as a non-executive member.

    David Sidwell, born in 1953, retired as Chief Financial Officer and a member of the management committee at Morgan Stanley at the end of 2007.

    In this role he led a finance function of 3,000 professionals and played a central role in Morgan Stanley's efforts to improve its risk-taking and capital allocation through his performance evaluation of its businesses. He also devised and ensured the approval and execution of the strategic plan for acquisitions, divestitures and growth areas.

    Marcel Ospel, the Chairman of the Board of UBS commented: "David Sidwell has an extensive background in the areas of risk management, financial control as well as strong relationships with key regulatory bodies globally. He is a keen strategist and possesses broad insights and perspectives across all banking operations. This extensive banking expertise will only further strengthen our board. I'm pleased that he is willing to stand for election."

    After the merger of JP Morgan with Chase, and until he left the firm in March 2004, he was Chief Financial Officer of the Investment Bank. His responsibilities included strategic analysis and planning and the implementation of the risk management process as well as financial control.


  2. UBS and Bloomberg launch the CMCI Food Index

    UBS AG and Bloomberg Finance L.P. are pleased to announce the launch of the UBS Bloomberg CMCI Food Index, a unique investment tool offering direct exposure to the food sector.

    The UBS Bloomberg CMCI Food Index is available in US dollars, Euros and Swiss Francs and covers 13 commodities directly linked to food consumption including wheat, corn, soybeans, sugar and livestock. Each commodity in the Index is diversified across a range of different investment maturities and uses the same methodology as the UBS Bloomberg Constant Maturity Commodity Index (CMCI) which addresses common investor concerns such as volatility and roll yield. The UBS Bloomberg CMCI Index will serve as the underlying for a variety of investment products, such as exchange-traded funds (ETFs), structured products and investment funds. The new Index is available to Bloomberg users via the function CMCX ‹GO› on the BLOOMBERG PROFESSIONAL® service.

    Morgan Metters, head of Commodity Index Structuring at UBS said: "Food prices have seen the biggest annual increase in several decades, contributing to high inflation rates in many economies, most notably China. Farm commodity prices have rallied significantly due to the growing prosperity of many developing nations as well as through increased demand from the expanding biofuel industry. In addition, recent climate effects and limitations in water and arable land have kept supply constrained. With a structural trend now developing in the market, this situation has spurred a huge interest from investors." He added: "Awareness of the link between commodity prices and inflation has increased significantly over the last six months, due mostly to the rise in food prices. The UBS Bloomberg CMCI Food Index was developed in response to a growing demand from investors looking to hedge against this price inflation as well as from those looking to buy food related commodities for diversification purposes."

February 2008

  1. Extraordinary General Meeting of UBS AG

    At the Extraordinary General Meeting on 27 February 2008 in Basel, the shareholders of UBS AG approved the issuance of mandatory convertible notes and the distribution of a stock dividend. Both measures are key components of the program announced on 10 December 2007 to strengthen UBS AG's capital base.

  2. UBS Appoints Jerker Johansson as Chairman and Chief Executive Officer of the Investment Bank

    UBS announces the appointment of Jerker Johansson as Chairman and Chief Executive Officer of its Investment Bank, and his appointment to the Group Executive Board. He will take up his appointment from 17 March 2008 and will be based in London.

    Mr Johansson joins UBS from Morgan Stanley, where he was Vice Chairman, Europe. In his 22 year career at Morgan Stanley, Mr Johansson was previously Head of the Institutional Equity Division and co-head of the combined Equity and Fixed Income sales and trading businesses.

    Marcel Rohner, Group Chief Executive Officer, UBS commented: "We are delighted to announce the appointment of Jerker Johansson as head of the Investment Bank. Jerker brings with him the skills and experience to grow the world's leading client driven investment bank. While this has been a difficult time for the Investment Bank, because of the losses in Fixed Income, we have continued to see strong performances in both our Equities and our Investment Banking divisions. I am confident that under Jerker's leadership we will build on this performance and strengthen our position further in all areas. I very much look forward to working closely with Jerker in the GEB to the benefit of all of UBS's clients."

    Jerker Johansson commented:"UBS is one of the world's leading financial services firms, with powerful and deep positions across its chosen client segments and markets. The current turbulence in financial markets represents a challenge, but also a huge opportunity for well run firms, and I look forward to leading UBS's Investment Bank to a prosperous future."

    At the same time, to strengthen its management structure, UBS announces the following appointments to the Group Executive Board (GEB):

    Robert Wolf, Chairman and CEO, UBS Group Americas and President and Chief Operating Officer, Investment Bank, will join the GEB in his current role.

    Alexander Wilmot-Sitwell, Joint Global Head, Investment Banking Department, UBS Investment Bank, will also become Chairman and CEO, UBS Group EMEA, and will join the GEB.

    Marten Hoekstra, Deputy CEO, Global Wealth Management & Business Banking and Head of Wealth Management, Americas, will join the GEB in his current role.

    Commenting on these appointments, Marcel Rohner, Group Chief Executive Officer, UBS, commented: "These appointments significantly strengthen the management structure of the firm. The new composition of the Group Executive Board reflects the breadth of the businesses and the markets we operate in, ensuring continuous, excellent execution against our strategic vision. I am delighted to welcome Jerker, Robert, Alex and Marten to their new roles."

    Zurich/Basel, 13 February 2008
    UBS

  3. UBS completes acquisition of Caisse Centrale de Réescompte Group

    UBS has completed the acquisition of Caisse Centrale de Réescompte (CCR) Group which was agreed in October 2007. The business of the CCR Group and UBS in France will be combined to create a strong domestic platform.

    The purchase price paid at the closing of the transaction was EUR 387 million consisting of the following two components: EUR 247 million for a 100% interest in the CCR Group, as well as EUR 140 million for the excess capital of the CCR Group, reflecting provisional adjustments made during the closing process. Under the terms of the transaction, the final price for the acquisition will be determined post closing, following determination of the actual adjustments.

    John Fraser, member of the UBS Group Executive Board and Chairman and CEO of Global Asset Management commented "In recent years, UBS Global Asset Management has greatly increased its investment range and we have expanded our operations into Brazil, China and Korea. This acquisition marks a further major growth of our global business in Europe."

    Gabriel Herrera, Head of Europe, Middle East and Africa, Global Asset Management commented "This transaction gives UBS an exciting opportunity to strengthen our domestic presence in the strategically important French market, enabling us to achieve our high growth ambitions. It will enable us to offer a full range of local and global products and services to our clients while providing our employees with an attractive platform for continuing professional development".

    Caisse Centrale de Réescompte (CCR) Group is an asset and wealth manager in France with EUR 13.3 billion of invested assets as of 31 December 2007 and with approximately 190 employees.

January 2008

  1. UBS pre-announces full-year and fourth quarter 2007 results

    On 10 December 2007, UBS indicated it may record a net loss for full-year 2007.

    UBS now expects to report a net loss attributable to shareholders of approximately CHF 4.4 billion for full-year 2007.

    For fourth quarter 2007, the net loss attributable to UBS shareholders will be approximately CHF 12.5 billion. These results reflect weak trading revenues in the Fixed Income, Currencies and Commodities (FICC) business in the Investment Bank. FICC numbers will include around USD 12 billion (CHF 13.7 billion) in losses on positions related to the US sub-prime mortgage market and approximately USD 2 billion (CHF 2.3 billion) on other positions related to the US residential mortgage market.

    UBS will provide further details on its financial performance on 14 February 2008, when it publishes its final full-year and fourth quarter 2007 results.

    On 10 December 2007, UBS also announced a capital improvement program. Two elements of this - replacement of the cash dividend with a stock dividend and a decision to rededicate treasury shares for disposal - immediately contributed to BIS Tier 1 capital. During fourth quarter 2007, UBS reduced its balance sheet and risk weighted assets. This process included the sale of some positions at a loss. The combination of the fourth quarter result, the stock dividend, the re-issue of treasury shares and the reduction in risk weighted assets mean that UBS will report a BIS Tier 1 ratio of 8.8% as of 31 December 2007. This number does not take into account proceeds from the Mandatory Convertible Notes, which, if approved at the Extraordinary General Meeting on 27 February 2008, will further strengthen UBS's Tier 1 capital.

December 2007

  1. Extraordinary General Meeting of UBS on 27 February 2008

    The Extraordinary General Meeting which UBS announced on 10 December 2007 will take place on 27 February 2008, beginning at 10:00 a.m., in the St. Jakobshalle in Basel.

    UBS shareholders will receive further information and the agenda items in January 2008.

November 2007

  1. UBS broadens its management structure within its international wealth management business

    The existing Wealth Management business with clients outside of Switzerland will be divided into four regional business areas as follows:

October 2007

  1. UBS re-confirms Group third quarter pre-tax loss in line with CHF 600 - 800 million range given on 1 October 2007

    A media report over the weekend has suggested that UBS may face additional writedowns in trading positions related to the US sub-prime residential mortgage-backed securities market.

    Although UBS will release quarterly results tomorrow, it would like to re-confirm that it will report an overall group loss that is within the range of CHF 600-800 million given in the announcement on 1 October 2007.

  2. UBS to acquire Caisse Centrale de Réescompte Group

    Caisse Centrale de Réescompte (CCR) Group is an asset and wealth manager in France with EUR 17 billion of invested assets as of June 2007 and with approximately 190 employees.

August 2007

  1. UBS reports second quarter result of CHF 5,622 million

    UBS reports net profit attributable to shareholders of CHF 5,622 million in second quarter 2007. This quarter's results include two items that had a significant impact on performance.The first item is the CHF 1,926 million post-tax gain from the sale of the 20.7% stake in Julius Baer, a result of the disposal of Private Banks & GAM in 2005. As the stake was held as a financial investment available-for-sale in UBS's accounts, the gain from its sale is included in performance from continuing operations. It is, however, no longer part of the continuing business, and UBS believes that isolating its impact provides a clearer picture of performance. The second item is the charge of CHF 229 million after tax related to the closure of Dillon Read Capital Management (DRCM), recorded in Global Asset Management. Excluding these two items, attributable profit in UBS's core operational businesses (financial businesses' attributable profit from continuing operations) would have been CHF 3,455 million, up 14% from the same period a year earlier and 9% higher than the record first quarter 2007 performance.

    "Again, net fee and commission income was at a record high of CHF 8,099 million. This was 26% higher than in the same quarter of 2006, and driven by improvements in practically all fee categories. What is particularly pleasing is that it now represents 52% of operating income," said Clive Standish, Chief Financial Officer.

    The investment banking business saw a very strong rise in M&A and corporate finance fees and higher equity and debt underwriting fees. One measure of the strength of UBS's market position is global market share. According to Dealogic, this improved to 5.8% in first half 2007 from 4.9% a year earlier. UBS grew faster than the 21.3% rate of the overall fee pool and its rank rose to fourth from eighth. Market share gains were achieved in all regions and product lines. Invested asset levels rose to CHF 3.3 trillion, and, as a result, asset-based fees in the asset and wealth management businesses rose.

    Reflecting mixed market developments, the second quarter 2007 result from the trading businesses saw significant swings in both directions. Overall, net income from the trading businesses was CHF 3,106 million, down 9% from second quarter 2006. Equities revenues rose from the same quarter a year earlier, supported by positive market conditions and strength in European and emerging markets.

    The performance in fixed income, however, was not satisfactory. Continued difficulties in the US mortgage securities market led to lower revenues in the rates business and further losses on some of DRCM's former portfolios, which contributed net negative revenues of approximately CHF 230 million in second quarter 2007. These developments were partially offset by robust credit fixed income results, which rose on global credit trading and proprietary strategies.

    Total operating expenses rose 21% to CHF 9,695 million in second quarter 2007 from the same quarter a year earlier. Approximately a fourth of the cost rise was attributable to the closure of DRCM. For the other parts of UBS, accruals for performance-related payments increased in line with revenues. Personnel expenses rose due to higher numbers of personnel, partially related to acquisitions, including Piper Jaffray and McDonald Investments. General and administrative expenses rose, with administration costs up partly due the inclusion of the acquisition of Banco Pactual. Professional fees rose due to the closure costs related to DRCM and higher legal fees. The expansion of UBS's businesses and the related increases in personnel drove travel and entertainment costs and expenses for office space higher. IT and other outsourcing costs rose on the increased business volume. The number of personnel in the financial businesses was 81,557 on 30 June 2007, up 920 compared with the end of first quarter 2007, with staff levels increasing across most business groups.

    "We are working on a number of growth initiatives that are at various stages of implementation. Among them are the expansion of the European wealth management business, investment in the Investment Bank fixed income business and the growth of US wealth management. The underlying strategy of these initiatives remains unchanged. In implementing them, we need to balance revenue opportunities with operational and economic efficiency. Thus, while the direction and cornerstone of our strategy remain unchanged, the tactics involved in executing will continue to be adapted to varying market conditions," said Marcel Rohner, Chief Executive Officer.

  2. UBS appoints Andre Esteves Global Head of Fixed Income

    UBS announced today that Andre Esteves has been appointed Global Head of Fixed Income for UBS Investment Bank. Esteves, most recently Chairman and CEO of the firm's Latin American business, UBS Pactual, will relocate from Brazil to London. In his new role, he will be responsible for overseeing the full suite of fixed income products across all regions. Esteves will continue to report to Huw Jenkins, Chairman and CEO of UBS Investment Bank. Esteves is a member of the UBS Group Managing Board.

July 2007

  1. Marcel Rohner appointed Group CEO, effective immediately

    Effective today, the Board of Directors has named UBS Deputy Group CEO Marcel Rohner as UBS Group CEO. Marcel Rohner has been a member of the Group Executive Board since 2002 and was named Deputy Group CEO in January 2006. As Chairman and CEO of Global Wealth Management & Business Banking, he has, over the last few years, managed the business that has made the largest contribution to the firm's revenues and profit. UBS's current Group CEO, Peter Wuffli, will relinquish all of his functions at UBS and leave the bank. The new Chairman and CEO of Global Wealth Management & Business Banking will be Raoul Weil, member of the Group Executive Board and currently head of Wealth Management International.

    Marcel Ospel will continue his strategic leadership at UBS as Chairman for at least another term. A year ago, as part of UBS's systematic management succession planning, Marcel Ospel expressed a wish to initiate a generational change of management at UBS and therefore retire from his function within the foreseeable future. He also proposed that Peter Wuffli be nominated his successor. After careful evaluation, the Board of Directors decided not to accept his proposal. It does not view the succession of the CEO to the position of Chairman as automatic. Instead, the Board identifies independently the composition of the leadership team which, in its opinion, suits the bank the best. In this context, it asked Marcel Ospel to serve for at least another term of three years as Chairman of the Board of Directors.

    The Board of Directors and Peter Wuffli therefore decided to institute generational change only in UBS's operational management. Peter Wuffli will transfer all his functions, effective immediately, to Marcel Rohner, his deputy. The Board of Directors is extremely grateful to Peter Wuffli for his substantial contribution to the growth of UBS, especially to the expansion of its franchise, market position and brand strength.

    Marcel Rohner, until now Deputy Group CEO of UBS and Chairman and CEO of Global Wealth Management & Business Banking, is well prepared for his new role and enjoys the full and undivided confidence of the Board of Directors. Raoul Weil has a proven management record and is in a position to take over leadership of Global Wealth Management & Business Banking in a seamless fashion. He has been head of Wealth Management International since 2002 and joined the Group Executive Board in 2005.

June 2007

  1. UBS successfully sells its 20.7% stake in Julius Baer

    UBS AG announced today that it has successfully placed a 15.23% stake in Julius Baer Holding AG, representing a total of 33,991,870 Julius Baer shares, at CHF 84 per share. The shares were offered to institutional investors in an accelerated bookbuilding transaction launched yesterday and met strong demand from high quality institutional investors in Europe and the US.

    Yesterday, UBS agreed to sell a 5.47% stake in Julius Baer, representing 12,222,222 shares, to Julius Baer at a price of CHF 90 per share.

    The pre-tax capital gain on the sale will be approximately CHF 2.0 billion. Gains from the sale will be used to buy back shares in the coming months as part of the 2007/2010 share repurchase program announced on 8 March 2007.

  2. UBS disposes of its 20.7% Julius Baer stake by launching an accelerated bookbuilding transaction for a 15.23% stake and selling the remaining 5.47% to Julius Baer

    UBS AG announced today that it has launched an accelerated bookbuilding transaction to institutional investors for the sale of 33,991,870 Julius Baer shares representing 15.23% of the company.

    At the same time, UBS AG has agreed to sell the remaining 12,222,222 Julius Baer shares, representing a further 5.47% of the company, to Julius Baer Holding AG for a price of CHF 90 per share conditional upon a successful completion of the accelerated bookbuilding transaction.

    UBS received the Julius Baer shares as part of the consideration in connection with the sale of its private label banks and specialist asset manager GAM to Julius Baer in December 2005. UBS had agreed to a lock-up period of 18 months which expired on 25 May 2007.

  3. UBS reaches settlement on litigation with Enron Creditors Recovery Corp.

    UBS believes it had valid defenses to all of Enron's claims, but chose to settle this case to eliminate the uncertainty created by the proceeding. UBS is pleased to bring this matter to a close.

    Under the terms of the settlement, UBS will pay Enron $115 million and will waive a proof of claim for approximately $5.5 million that UBS filed in Enron's bankruptcy case. The settlement is subject to the approval of the U.S. Bankruptcy Court for the Southern District of New York.

    The United States Bankruptcy Code provides that, under certain circumstances, anyone who received a payment from a company that subsequently goes bankrupt may be required to return the payment if the company was insolvent or inadequately capitalized, or it made the payment with the intent to hinder, delay, or defraud its creditors. Enron's claims against UBS were premised on the contention that payments to UBS were recoverable on these bases, a contention that UBS disputed.

    Enron commenced this case in November 2003 to recover payments totaling approximately $418.3 million that were made during 2001 pursuant to swap agreements indexed to Enron's common stock and forward contracts in which UBS had agreed to sell and Enron had agreed to buy Enron stock.

    During fiscal year 2006, UBS provisioned funds toward the resolution of this case. This settlement will not materially impact future financial results.

May 2007

  1. UBS's Julius Baer stake lock-up agreement to end today

    UBS currently holds 20.7% of Julius Baer as a financial investment. As the stake is not strategic in nature, UBS will now start looking at divestment options.

    At current market prices, proceeds from a disposal would be more than CHF 4.1 billion, which corresponds to a pre-tax capital gain of roughly CHF 2.1 billion. Gains from the Julius Baer stake will be used to buy back shares in the coming months as part of the 2007/2010 share repurchase program announced on 8 March 2007.

    UBS has held the 20.7% stake since December 2005, when Julius Baer agreed to buy the private label banks, Banco di Lugano, Ehinger & Armand von Ernst and Ferrier Lullin, together with specialist asset manager GAM. As part of the transaction, UBS agreed to certain lock-up obligations.

    UBS

  2. UBS Global Asset Management purchases 51% of Daehan Investment Trust Management Company

    DIMCO manages around KRW18.7 trillion (equivalent to approximately USD20.3 billion or CHF24.7 billion) of assets and is one of the market leaders in the Korean asset management industry. It is wholly owned by DI&S, which itself is wholly owned by Hana Financial Group.

    UBS Global Asset Management will pay KRW150 billion (equivalent to approximately USD162.2 million or CHF197.5 million) plus a KRW30 billion (equivalent to approximately USD32.4 million or CHF39.5 million) earn-out for its stake immediately, subject to customary purchase price adjustment and to an earn-out claw back of up to KRW30 billion over the next three to five years.

    The joint venture will combine the international know-how of UBS Global Asset Management with the domestic expertise of DIMCO. To that extent the two parties will work together to apply UBS standards in investment research, portfolio management, risk management, sales and marketing, operations, internal controls and compliance to the operation of the joint venture.

    "The establishment of the joint venture between UBS and DIMCO is another important step towards fulfilling UBS Global Asset Management's ambition to build a strong presence in Korea's asset management industry and broaden the scope of our business in Asia Pacific," said John FRASER, Chairman and Chief Executive Officer of UBS Global Asset Management.

    "UBS Hana Asset Management will be one of the largest asset managers in the Korean market which represents an important source of new business for UBS. In light of Korea's strong underlying economic growth, continuing reform of the pensions market and the increasing sophistication of investors, we believe that the Korean asset management market offers very significant potential for growth and will be an increasingly attractive destination for foreign investment," he added.

    "UBS's expertise in the international arena complements perfectly Daehan Investment Trust Management Company's well established foothold in and knowledge of, the Korean market. I am confident that having UBS as a partner will allow us to ensure that the company operates in accordance with international best practices but also enhances our ability to meet the needs of the growing client base in Korea," said Vice-Chairman Wangha CHO at DI&S.

    "I look forward to working with our new partners. We will combine UBS's specialized knowledge and global perspective, with the local market knowledge and expertise of DIMCO's existing employees. The combination of our respective strengths will create what I am confident will be a united business which will be better able to meet the needs of its clients and interests of its shareholders," added Andreas NEUBER, Head of Strategic Projects Asia Pacific at UBS Global Asset Management and designated Chairman of the Board of Directors at UBS Hana Asset Management.

  3. UBS announces reintegration of Dillon Read Capital Management Portfolios into the Investment Bank. Outside investor funds to be redeemed

    UBS announced today that the proprietary funds currently managed by Dillon Read Capital Management (DRCM) within Global Asset Management will transition to the Investment Bank. DRCM's principal finance, credit arbitrage and commercial real estate businesses will be merged with relevant business lines within the Investment Bank. DRCM's third party funds will be redeemed. UBS intends to work with DRCM investors to identify alternative investment opportunities for them.

    DRCM will continue operations until the transition period is complete which is anticipated to be in Q3 2007.

    Peter Wuffli, Group CEO of UBS said, "UBS remains totally committed to alternative investment offerings for our clients. However, based on an assessment of a number of factors, we concluded that the DRCM initiative did not meet our expectations. Consequently we took this decisive action, which is in the best interests of our clients and shareholders."

    "Operating a proprietary trading platform outside the Investment Bank and managing client money alongside became too complex and expensive. That, among other reasons, is why we have chosen to reintegrate DRCM into the Investment Bank and to redeem the outside investor funds," said John Fraser, Chairman and CEO of Global Asset Management.

April 2007

  1. UBS to report First Quarter 2007 Results on May 3rd

    A test site for the results webcast is now available. It is recommended that you visit this site, register for an e-mail reminder of the presentation and view the test video and slides before 3 May to avoid technical problems on the day.

  2. Annual General Meeting of UBS AG

    At the Annual General Meeting (AGM) held on April 18, 2007, the shareholders of UBS AG approved the Annual Report and Group Financial Statements for 2006 and granted discharge to the members of the Board of Directors and Group Executive Board.

    Elections to the Board of Directors

    The 2007 AGM marked the end of Sir Peter Davis's term of office as a member of the Board of Directors. He has held the post since 2001, and is relinquishing it after having reached the maximum age limit.

    The AGM elected Sergio Marchionne to the Board of Directors for a three-year term. Sergio Marchionne, Chief Executive Officer von Fiat S.p.A., Torino, becomes a nonexecutive member.

    Stephan Haeringer was re-elected for a further three-year term as an executive member of the Board of Directors. The directorial mandates of Helmut Panke, holder of several board memberships, including as a member of the Board of Directors of Microsoft Corporation, and Peter Spuhler, owner of Stadler Rail AG (Switzerland), were also confirmed for a further three-year term.

    Dividend of CHF 2.20

    UBS shareholders approved the dividend of CHF 2.20 per share proposed for the 2006 financial year. The 38% year-on-year increase reflects the good results for 2006 and the bank's policy of returning cash not needed for operations to shareholders in the form of dividends and via buybacks of shares for cancellation.

    The dividend will be distributed on April 23 to all shareholders holding shares on April 18. Starting April 19, UBS shares will be traded ex-dividend.

March 2007

  1. UBS publishes 2006 annual reports

    Annual Review 2006
    This year's Annual Review looks at some major global trends, and the part UBS plays in them. It also contains a summary review of UBS's 2006 financial performance, businesses and corporate governance.

    Handbook 2006/2007
    The Handbook contains a detailed description of UBS, its strategy, organization, businesses, employees and corporate governance.
    The Handbook comprises:

  2. UBS proposes Sergio Marchionne for election to the Board of Directors

    At its Annual General Meeting on 18 April 2007 the UBS Board of Directors will propose Sergio Marchionne for election to the board as a non-executive member and three current members for re-election.

    Sergio Marchionne, born in 1952, is Chief Executive Officer of Fiat S.p.A., Turin, as well as Fiat Group Automobiles.

    Marcel Ospel, the Chairman of the Board of UBS, commented: "Sergio Marchionne has gained extensive leadership experience in a number of globally-active companies covering different industries. I am extremely happy that he is willing to stand for election to our board."

    Sergio Marchionne earned his MBA at the University of Windsor, Canada, and his law degree at Osgoode Hall Law School in Toronto, Canada, and is a lawyer and chartered accountant. He is a citizen of both Italy and Canada.

    The Board of Directors will also ask the AGM to re-elect Stephan Haeringer, Helmut Panke and Peter Spuhler to the board, as their terms of office will expire in 2007. After having served for six years on the Board of Directors of UBS, Sir Peter Davis' term will expire at the 2007 AGM. As he has reached the statutory age limit, he will not stand for re-election.

    After the 2007 AGM, the Board of Directors should again have 12 members, which is the maximum number permitted by the UBS Articles of Association.

February 2007

  1. UBS reports 2006 result of CHF 12,257 million and fourth quarter result of CHF 3,407 million

    Zurich/Basel, 13 February 2007 - UBS reports net profit attributable to shareholders of CHF 12,257 million in 2006. Continuing operations contributed CHF 11,491 million and discontinued operations CHF 766 million.

    Financial businesses' attributable profit from continuing operations was a record CHF 11,249 million in 2006, up 19% from the same period a year earlier.

    "We are pleased to report that 2006 was another record year for UBS. The performance of our financial businesses improved for the fourth consecutive year. Even more importantly, we took a number of strategic steps to expand and develop our business in line with our growth ambitions," said Peter Wuffli, Chief Executive Officer.

    UBS realized four significant acquisitions in 2006, three of which have already been completed. They will close important competitive gaps and help accelerate growth, particularly with regard to Banco Pactual in Latin America. The results of all businesses improved notably in 2006 from a year earlier. Net new money from clients totaled CHF 151.7 billion, with CHF 113.3 billion contributed by the wealth management businesses, which experienced strong client flows all around the world, and particularly in Asia and Europe. As a result of the strong inflows and rising markets, invested assets nearly reached the CHF 3 trillion mark. Recurring fees, including asset-based revenues and income from private client lending businesses, were up significantly compared with 2005. Brokerage fees rose as well, reflecting the vigorous levels of financial market trading activity from institutional and private clients.

    UBS's Investment Bank further expanded its share of M&A and equity capital markets, with particular success in large cap deals, emerging markets and technology. As a result, corporate finance and underwriting fees rose 25%. The strategic expansion of UBS's business, both by acquisition and through organic development, requires more people, infrastructure and investment, and although income rose 19%, costs were up 18%.

    "We are acutely aware of the importance of concentrating extra resources in areas that generate or support increased revenues, and making sure that we do not allow any part of our business to develop inefficient habits," said Clive Standish, Chief Financial Officer.

    Some of the increase in expenses came from two previously announced provisions; the settlement agreement with Sumitomo Corporation and the sublease of unused office space in New Jersey. Higher personnel costs, however, were the major contributor to increased expenses as, at the end of 2006, UBS employed 78,140 people, 8,571 more than a year earlier. Over 2,000 of the increase was from acquisitions completed during the year. UBS continued to hire client-facing personnel and functional specialists for its businesses all around the world. As a consequence, occupancy costs rose. Expenses for IT outsourcing, telecommunication and travel were up in conjunction with higher activity levels, business volume and revenue. Professional fees rose for strategic initiatives.

  2. UBS Completes Acquisition of McDonald Investments Private Client Branch Network

    Beginning next week, McDonald Investments branch offices will be renamed and integrated into UBS Wealth Management US throughout the Northeast, Midwest, Rocky Mountain and Northwest states. The network includes the offices of Gradison and Gradison Asset Management.

  3. UBS to report Fourth Quarter 2006 Results on February 13th

    A test site for the results webcast is now available. It is recommended that you visit this site, register for an e-mail reminder of the presentation and view the test video and slides before 13 February to avoid technical problems on the day.

January 2007

  1. UBS and Bloomberg launch global commodity index family

    UBS AG and Bloomberg L.P. today launched the UBS Bloomberg Constant Maturity Commodity Index ("CMCI") family - a highly innovative concept in commodity index investment. This global index family will not only cover a broad range of commodities, but will also introduce a time dimension by providing access to a range of different investment maturities for each of these commodities. This is combined with a revolutionary calculation methodology. The index family will be published in U.S. dollars and Euros (Bloomberg function CMCN [GO]).

    Strong need for a new commodity index concept
    Since the early nineties, the primary avenue available for investing in commodities has been via traditional indices. These indices performed well for a period of time, but over the last few years it has become increasingly clear that investors need diversification across maturities as well as across commodities; currently investors are limited to short-dated maturities in the traditional indices. The limitation to short-dated maturities has had several negative repercussions for the investor and more recently has been responsible for a significant deterioration of overall returns.

    A simple yet innovative solution to commodity investing
    UBS and Bloomberg believe that the solution to many of the recent issues faced by investors lies not in creating increasingly complex vehicles, but in providing greater flexibility and choice. The UBS Bloomberg Constant Maturity Commodity Index allows investors to easily diversify across maturities and commodities and more efficiently adapt their commodity index investment to the current economic environment.

    A benchmark of modern commodity investment
    The CMCI is designed to be an international benchmark for modern commodity investment. It is composed of a basket of 28 commodity futures with a series of available investment maturities for each individual commodity using a highly innovative calculation methodology. This will allow investors much greater flexibility in their risk profile. The CMCI is weighted to reflect the relative importance of each individual commodity in the index to the world economy - with weights based on a blend of economic indicators (GDP, PPI, and CPI) as well as liquidity and open interest of the underlying futures contracts.

    The UBS Bloomberg Constant Maturity Commodity Index (CMCI) provides investors with a new dimension of commodity investment and serves as a basis for a variety of investment products, such as structured products or investment funds.

    As of 29 January 2007, the target weightings and available investment maturities for all commodities included in the CMCI are as follows:

  2. UBS acquires Standard Chartered's mutual funds management business in India

    The transaction is structured as the acquisition of a 100% interest in Standard Chartered Asset Management Company Private Ltd, as well as Standard Chartered Trustee Company Private Ltd, the manager and trustee, respectively, of the mutual funds offered by the company. The transaction remains subject to regulatory approval as well as to a price adjustment linked to assets under management at closing.

    In a separate move, UBS announced its intention to form a strategic alliance with Standard Chartered Bank for fund distribution in Asia, the Middle East and Africa. Although the scope of the agreement has yet to be finalized, it is envisaged that it will give Standard Chartered's growing retail and wealth management businesses access to UBS Global Asset Management's flagship capabilities as well as to a number of UBS Investment Bank products including structured products and, at the same time, provide momentum to UBS's third-party wholesale business in Asia.

    "The acquisition is a milestone in our plan to build a major presence in India's growing funds management industry and demonstrates UBS's broader commitment to this important market. As the regulatory environment continues to develop, domestic investors will - as has been the case in other markets - increasingly look to global financial services firms to provide innovative investment solutions. The acquisition is linked to an opportunity to align us with a major distributor in the region which will also enhance the UBS brand," said John Fraser, Chairman and CEO of UBS Global Asset Management.

    UBS expects Standard Chartered's mutual funds management business in India to have assets under management of around CHF 4.0 billion. It currently manages 16 mutual funds, 10 of which are fixed income, two asset allocation and four in equities. The equity funds represent around 19% of total assets under management.

    Formerly known as ANZ Grindlays Asset Management Company, Standard Chartered Asset Management Company was incorporated in 1999. It has around 60 permanent staff members and is the ninth largest mutual fund manager in India with a 4% share of the domestic market1. It is headquartered in Mumbai and has offices in 27 other cities, including Bangalore, Chennai, Kolkata and New Delhi.

    "The purchase provides UBS with a strong investment team and a broad, local distribution network throughout India. The business has an experienced management team which, in addition to founding the company, has a proven track record," said Christof Kutscher, Head of UBS Global Asset Management in Asia Pacific.

    "While fixed income and money markets have been Standard Chartered's mutual funds' traditional focus representing some 80% of invested assets, equities will form an increasing proportion of assets under management. I am confident that UBS Global Asset Management will act as a powerful catalyst for this transition and allow the company to offer a diverse range of enhanced and high value-added products across all major assets classes," he added.

    The mutual fund management market in India has an approximate size of CHF 91 billion and has grown by around 26% annually since 2001. The growth rate surged to higher than 62%, in 20062 . However, the continuing liberalisation of the country's pension market, relatively low penetration levels and the increasing sophistication of investors, provide significant potential for further growth.

    UBS has a well established, growing presence in India, and is one of the top brokers for international investors investing in Indian equities. UBS India Securities Private Ltd's brokerage and advisory services have been available through the Mumbai office since 1990. The UBS India Service Centre, which provides knowledge services (research and analytics), business process offshoring (transaction and data processing) and IT infrastructure support, was opened in Hyderabad in June 2006.

    UBS

    1 Data for 31st December 2006. Source: Association of Mutual Funds in India (AMFI) (as at 10 January 2007)
    2 Data for 31st December 2006. Source: Association of Mutual Funds in India (AMFI) (as at 12 January 2007)

  3. UBS Granted Mexican Banking License

    UBS announced today that it has received approval from the Ministry of Finance to offer banking services in Mexico. The firm plans to begin operations in the first quarter of 2007.

    Initially, UBS will offer cash, foreign exchange and debt products to institutional investors in Mexico. Additional products and services may be offered in the future, both to institutional as well as individual clients.

    "This license represents a significant step for UBS. Having operations in Mexico and serving clientele here is an integral component of UBS's expansion into Latin America, and we are excited and optimistic about the future of UBS in this country," said Andre Esteves, chairman and chief executive of UBS Latin America.

December 2006

  1. Statement from UBS Regarding Complaint Filed by New York State Attorney General

    UBS confirmed today the New York State Attorney General (NYAG) has filed a complaint regarding InsightOne, the firm's fee-based brokerage program for private clients in the United States.

    UBS categorically denies that the program was part of a scheme to disadvantage clients, and intends to defend itself vigorously in this matter. We are disappointed that the NYAG did not review or consider relevant data that supports the firm's position prior to filing the complaint.

    UBS is committed to clients' individual needs. The InsightOne program was designed to satisfy those clients who sought alternatives to the industry's traditional commission-based accounts. Fee-based brokerage, in which clients pay a fee for trading activity rather than commissions on a per trade basis, offers investors greater choice as well as a way to closely align the interests of financial advisors and clients with respect to growing the value of the brokerage account. While InsightOne is not a discount program, since the program's inception in 1999 UBS clients have saved hundreds of millions of dollars, in aggregate, over what they would have paid in full commissions.

    Fee-based brokerage programs are offered by most large broker-dealers. In 2005, U.S. investors had more than USD 268 billion in fee-based programs industry-wide. At UBS, InsightOne accounts constitute approximately 3.5 percent of the firm's U.S. brokerage accounts.

    UBS disclosed in its third-quarter financial report the possibility of this civil litigation.

  2. UBS Completes Acquisition of Banco Pactual S.A.

    Beginning today the firm will operate in Brazil under the name UBS Pactual. The firm will offer Investment Banking, Asset Management and Wealth Management services to clients across Latin America.

    Huw Jenkins, Chairman and CEO of UBS Investment Bank said, "This transaction underscores our continued commitment to expanding in emerging markets. Our team at UBS Pactual adds a great depth of talent to the firm and will be instrumental in delivering our global product offering to this important regional client base."

    Andre Esteves, Chairman and CEO of UBS Latin America said, "This is a significant step forward for UBS's expansion in Latin America. Our complementary market leading positions in capital markets, research, advisory and wealth and asset management enable us to build the leading financial services firm in the region."

    Within Brazil, UBS Pactual employs approximately 750 people and has offices in Rio de Janeiro, São Paulo, Belo Horizonte and Recife.

    UBS

November 2006

  1. Huw Jenkins at the Merrill Lynch Banking & Financial Services Conference

    The Merrill Lynch Conference is taking place on November 14 - 16, 2006 at the The Pierre Hotel in New York City.

  2. UBS announces departure of Mark Sutton

    UBS announced today that Mark Sutton, Member of the Group Executive Board and Chairman and CEO Americas, has decided to step down from his role in order to pursue a range of other business opportunities and personal interests. He will remain with the firm until the end of 2006.

    Robert Wolf has been appointed as Chairman and CEO of UBS Americas. Robert Wolf has previously been Chairman of UBS Investment Bank, Americas and Global Chief Operating Officer of UBS Investment Bank. Robert Wolf will continue to retain the role of Chief Operating Officer of the Investment Bank. He will report to Huw Jenkins, Chairman and CEO of UBS Investment Bank, who will assume regional responsibility for the Americas in the UBS Group Executive Board.

    Mark Sutton, 52, has been with UBS and its predecessor firms since 1980. He has held his current position since 2005. Previously, he was Chairman and Chief Executive Officer of Wealth Management US.

    "Mark has made significant contributions to UBS. First, in leading our US wealth management business and, more recently, by further aligning our businesses in the United States. We respect his decision to move on and wish him all the best in his future endeavors," said Peter Wuffli, Group Chief Executive Officer of UBS.

October 2006

  1. UBS reports third quarter 2006 result of CHF 2,199 million

    UBS reports net profit attributable to its shareholders of CHF 2,199 million in third quarter 2006, down 21% from CHF 2,770 million in the same period a year earlier. Net profit from continuing operations was down 15%.

    UBS's industrial holdings, which now comprise only the private equity portfolio, contributed CHF 81 million to third quarter attributable profit.

    Financial businesses contributed CHF 2,114 million to attributable net profit from continuing operations. This is 30% lower than second quarter 2006 and 16% below the third quarter 2005 result. Operating income fell 13% from second quarter 2006, in the context of weaker markets and in the absence of disposal gains, which benefited results in second quarter.

    "We felt the effects of the May and June market correction in the first part of this quarter as sentiment did not really improve until September -- which is why we were not able to match the very strong performance in the first half," said Clive Standish, Chief Financial Officer.

    Compared to third quarter a year earlier, income was up 1%. Weaker revenues from trading activities, mainly in the equities and rates businesses in the Investment Bank, were offset by improvements in other areas, such as fee and commission income, which comprised 58% of overall operating income in third quarter 2006.

    Asset-based fees increased in both wealth and asset management, reflecting strong net new money inflows and higher market levels. The Investment Bank generated strong revenues in its advisory and debt underwriting businesses. Debt capital markets recovered significantly from a year earlier. The mergers and acquisitions environment was vigorous.

    Notable transactions included advising the world's leading iron ore miner, Companhia Vale do Rio Doce (CVRD), on its acquisition of Canadian-based nickel company Inco. In leveraged finance, where UBS was less strong in the past, it participated in a number of major capital market transactions, including the offering for Anadarko Petroleum in its acquisition of Kerr-McGee Corporation and Western Gas, and Blackstone's acquisition of Travelport.

    Net income from interest margin products rose on higher margin lending volumes in the wealth management businesses and the continued growth of the Swiss mortgage business, as well as from wider spreads on client deposits.

    Net income from trading activities was down 15% from a year ago. Equities trading income declined 25%, as markets in third quarter were relatively quiet in contrast to a year earlier - when they were exceptionally buoyant. Fixed income trading revenues decreased 15%, reflecting a fall in derivatives trading in the US and Europe, partly offset by resilient client-driven revenues in the rates business.

    Total operating expenses were CHF 7,715 million in third quarter 2006, up 8% from a year earlier, due to higher general and administrative and personnel expenses, as UBS continued to expand its business and hire new people in key functions.

    Personnel expenses rose on higher salary costs, with the continued hiring of new employees, partially offset by lower performance-related accruals. General and administrative expenses increased, as UBS recorded a provision of CHF 141 million related to a long-term lease on an office building in New Jersey. Professional fees rose from third quarter 2005. Costs for IT and outsourcing rose, reflecting both the expansion in business volumes compared with a year earlier, and the build-out of infrastructure. Increased levels of staff and business expansion led to higher spending on travel and entertainment, telecommunications and administration. Expenses for marketing and public relations were up as well.

    The number of personnel in the financial businesses was 75,593 on 30 September 2006, up 6,024 from 69,569 on 31 December 2005, with staff levels increasing across all businesses. The international and Swiss wealth management business, continuing its growth strategy, added advisors and staff in most regions. The US wealth management business saw employee levels increase as a result of the integration of Piper Jaffray's branch network. The Swiss commercial and retail banking business saw a significant rise in personnel following the annual intake of apprentices. Staff levels at the Investment Bank rose in all businesses, with the majority of the increase in IT and finance functions and, to a lesser extent, in operations.

August 2006

  1. UBS reports second quarter 2006 result of CHF 3,147 million

    UBS reports net profit attributable to its shareholders ("attributable profit") of CHF 3,147 million in second quarter 2006, up from CHF 2,147 million in the same period a year earlier.

    Financial businesses contributed CHF 3,032 million to attributable net profit, up 51% from a year earlier (from continuing operations). The result was close to the all-time record set in first quarter 2006. In first half 2006, attributable profit from the financial businesses was CHF 6,080 million, up from CHF 4,538 million in the same period a year earlier.

    UBS's industrial holdings, which now comprise only the private equity portfolio, contributed CHF 115 million, or 3.7%, to UBS's second quarter attributable profit.

    "Our performance was strong - and achieved despite the market reversal in the middle of May. Recurring income continued to benefit from the high levels of invested assets. Underwriting fees were at a record. Corporate finance and brokerage fees rose, as did revenues from trading activities," said Clive Standish, Chief Financial Officer.

    Total operating income from the financial businesses rose to CHF 12,057 million in second quarter 2006, up 33% from the same period a year earlier. Asset-based revenues, such as fees from investment funds or portfolio management, continued to benefit from the high levels of invested assets. Underwriting fees were at a record on growth in equity underwriting across the globe. In investment banking, UBS did especially well in Asia, including acting as joint global coordinator and bookrunner in the initial public offering of the Bank of China. Corporate finance fees were up from the same period a year earlier in the brisk merger and acquisition environment. Brokerage fees from institutional and private clients rose, with activity being especially vigorous at the beginning of the quarter. Revenues from trading activities rose in all products. In equities, the rise was led by derivatives and the expansion of prime brokerage. Fixed income saw increases in mortgage-backed securities and derivatives. Foreign exchange trading revenues also rose. Net income from interest margin products rose due to growing margin lending volumes in the wealth management businesses.

    Overall performance was further helped by gains on the disposal of financial investments held in the Investment Bank.

    Total financial businesses operating expenses rose 25% to CHF 8,017 million. The increase is due to higher personnel expenses and general and administrative costs as UBS continued to expand its business in all key markets. Personnel expenses, reflecting continued hiring, rose on higher salary expenses and increased performance-related accruals. General and administrative expenses increased with higher professional fees, increases in IT and other outsourcing, travel and entertainment, occupancy, marketing and public relations expenses. The same period a year earlier saw general and administrative expenses reduced by the release of provisions. Overall performance was further helped by another quarter of credit loss recoveries.

    The number of personnel in the financial businesses was 71,882 on 30 June 2006, up 2,313 from 69,569 on 31 December 2005, with staff levels increasing across most businesses. In the Americas, personnel levels rose by 3% to 27,874 compared with the end of 2005, in Asia Pacific they were up 18% at 6,388 and in Europe they gained 6% to 11,716. In Switzerland, staff numbers fell by 0.5% to 25,904 because of the transfer of UBS facility management activities to Edelweiss in first quarter. Excluding the impact of Edelweiss, Swiss staff numbers rose by 525 or 2%.

May 2006

  1. UBS Announces Management Appointments Following Acquisition of Banco Pactual S.A.

    Andre Esteves, 37, currently Managing Partner of Banco Pactual S.A., has been named CEO and Chairman of UBS Latin America, reporting to Huw Jenkins, Chairman and CEO of UBS Investment Bank.

    Jürg Haller, 48, currently Global Head Products & Services for UBS Global WM&BB, will become Chief Operating Officer, Deputy CEO and Deputy Chairman of UBS Latin America operations, reporting to Esteves. He will oversee the integration of Pactual and the existing UBS business in Brazil.

    Michael Weisberg, 36, currently Head Products & Services North America will take over the role of Global Head Products & Services for UBS Global WM&BB. Weisberg will report to Marcel Rohner, Chairman and CEO, UBS Global Wealth Management & Business Banking.

    These management appointments will be effective upon the closing of the Pactual acquisition, which is expected for September 2006. UBS announced on May 9, 2006 that it will acquire Banco Pactual and integrate it into UBS's Investment Banking, Asset Management and Wealth Management businesses.

  2. UBS reports first quarter 2006 result of CHF 3,504 million

    Net profit attributable to UBS shareholders of CHF 3,504 million (including net CHF 290 million gain from sale of Motor-Columbus)

April 2006

  1. UBS and Sumitomo Corporation agree on settlement of outstanding litigation relating to copper-related transactions

    On 7th April, UBS AG reached agreement with Sumitomo Corporation to settle the litigation brought by Sumitomo Corporation in 1999 in relation to certain copper-linked transactions in which the former UBS had participated from 1995 to 1996.

    Under the settlement, with no admission of wrongdoing, UBS has agreed to pay Sumitomo Corporation JPY10 billion (~USD86 million at the current JPY/USD exchange rate of 117). With the agreement, all claims brought by Sumitomo Corporation in the litigation have been settled. The settlement will be wholly reflected in provisions in UBS Investment Bank's first quarter results.

March 2006

  1. UBS commences new share buyback program

    As already announced in the quarterly press release, UBS will commence another share buyback program leading to the cancellation of shares. As in previous years, the repurchase will take place over a "second trading line" on virt-x.

    On this second line, shares will be purchased exclusively by UBS. The second line will be available from 8 March 2006 to 7 March 2007. The repurchased shares must be cancelled following shareholder approval at the 2007 Annual General Meeting (AGM). The program, aimed at institutional investors, allows tax-efficient cancellation of shares.

    UBS's Board of Directors has established a maximum buyback limit of CHF 5 billion or approximately 3.3% of total share capital. This represents a limit and not a target, and UBS will continue to prioritize attractive opportunities for investing in the growth of its businesses. While maintaining its strong capitalization and ratings, UBS is committed to returning to shareholders capital in excess of its business needs. As of 31 December 2005, UBS's BIS Tier 1 Ratio stood at 12.9%.

    This second line program supersedes the share buyback program launched in March 2005. Under that program - which had a limit of CHF 5 billion - 37'100'000 shares were repurchased. The shares were purchased at an average price of CHF 108.53 for a total value of CHF 4.026 billion. Following the approval of the AGM on 19 April 2006, these shares will be cancelled in summer 2006.

    Zurich / Basel, 8 March 2006
    UBS

February 2006

  1. UBS Statement on Settlement of Wage and Hour Litigation

    This settlement resolves claims that UBS incorrectly classified Financial Advisors and Financial Advisor trainees as exempt under federal law and the laws of all the states where UBS employs such employees. It also resolves claims that UBS should not have made certain adjustments to the compensation of Financial Advisors and Financial Advisor trainees.

    As part of the settlement, the firm has agreed to pay as much as $89 million. The vast majority of this amount was provisioned in third quarter 2005.

    UBS settled this case at the national and state level because it did not believe protracted litigation in multiple courts was in the best interests of employees or clients.

    Approximately three-quarters of the settlement amount will be available to employees via a claims process that must be approved by the court. Final details of the payment process are still to be determined by the court and will be managed by a third-party administrator. The remaining quarter of the settlement amount will go to administrative and legal costs.

January 2006

  1. Mark Sutton at the Citigroup Financial Services Conference

    The Citigroup Financial Services Conference is taking place on January 31 - February 1, 2006 at the The Waldorf Astoria in New York City.

  2. UBS reaches settlement with regulators on trading activity

    The costs of the settlement will be largely reflected as provisions in the firm's fourth-quarter results.

    UBS neither admits nor denies any of the allegations made against the firm.

December 2005

  1. UBS announces board nominations and executive appointments

    The UBS Board of Directors will propose two new members for election and two current members for re-election at the AGM to be held on 19 April 2006 in Basel.

    Gabrielle Kaufmann-Kohler, born in 1952, is a partner with Schellenberg Wittmer, the Swiss-based law firm, and a professor of private international law at the University of Geneva. She is a member of both the Geneva Bar and the New York State Bar and is known worldwide for her expertise in international arbitration.

    Joerg Wolle, born in 1957, is President and CEO of DKSH Holding Ltd. a Swiss-based services group for Asia that focuses on sourcing, marketing, logistics and distribution for small and medium sized companies as well as multinationals worldwide.

    "The nominees will provide us with highly valuable expertise. Gabrielle Kaufmann-Kohler complements the present composition of the board with her extensive experience in international law and dispute settlement. Joerg Wolle has a strong and successful record in the fast growing markets of the Asia Pacific region," commented Marcel Ospel, Chairman of the Board of Directors.

    The Board of Directors will also ask the AGM to re-elect Ernesto Bertarelli and Rolf A. Meyer to the board, as their terms of office will expire in 2006. After having served for 21 years on the Board of Directors of UBS and its predecessor bank Swiss Bank Corporation, Peter A. Boeckli's term will expire at the 2006 AGM. As he has reached the statutory age limit, he will not stand for re-election.

    After the 2006 AGM, the Board of Directors should have 12 members, which is the maximum number permitted by the UBS Articles of Association.

November 2005

  1. Huw Jenkins at the Merrill Lynch Banking & Financial Services Investor Conference

    The 2005 Merrill Lynch Banking & Financial Services Investor Conference is taking place on November 15 - 17 at the Pierre Hotel in New York.

  2. UBS reports third quarter 2005 result of CHF 2,770 million

    UBS reports net profit attributable to its shareholders ("attributable profit") of CHF 2,770 million in third quarter 2005. Financial businesses contributed CHF 2,642 million, up 67% from a year earlier, and 50% higher pre-goodwill. In the first nine months of 2005, attributable profit from financial businesses was CHF 7,180 million, up 25% from CHF 5,767 million in the same period of 2004.

    UBS's industrial holdings, including its stake in Motor-Columbus and its private equity portfolio, contributed CHF 128 million, or 4.6%, to UBS's attributable profit.

    "It is unusual for the third quarter to be so strong. But the market offered plenty of opportunities - and we had the business strength to take advantage of them for our clients and on our own behalf," said Clive Standish, Chief Financial Officer.

    Total operating income from financial businesses was CHF 10,711 million in third quarter 2005, up 27% from third quarter a year ago. Revenue increased in practically all businesses and across income categories. Asset-based fees were up as markets rose and new client money flowed into the asset and wealth management businesses. Fees from investment funds and from portfolio management mandates reached new records. Corporate finance fees almost doubled from third quarter 2004, reflecting higher corporate activity levels and the strength of UBS's advisory capabilities, which helped the firm win mandates for a number of significant transactions. Underwriting fees were also up, mainly reflecting growth in the fixed income underwriting business. These effects drove net fee and commission income up to a new record high - it now makes up 54% of overall income. Revenues from interest margin products increased to the highest level since early 2002, reflecting growing lending activities to wealthy private clients worldwide. Trading was particularly strong in the equity markets, mainly driven by the derivatives business. The fixed income, rates and currencies business successfully rebounded from third quarter 2004. Here, the Investment Bank is currently looking for ways to expand its presence into new areas in order to further develop its competitive position. Reflecting a stable economic environment across all markets, UBS realized a net credit loss recovery of CHF 37 million in third quarter 2005, following net recoveries of CHF 69 million in second quarter 2005 and CHF 12 million in third quarter 2004.

    Net new money inflows in the wealth management businesses in third quarter were CHF 31.1 billion, up from CHF 20.2 billion in second quarter, reflecting strong performances in all regions. The international business (excluding the domestic business in the US) recorded inflows of CHF 19.3 billion, driven by further growth in Asia and UBS's five key target European markets. The Swiss business, seeing its third consecutive quarter of positive net new money results, recorded an inflow of CHF 1.9 billion. US clients contributed CHF 9.9 billion in net new money, an extremely strong rebound from CHF 1.8 billion in second quarter. Including the record inflows of CHF 19.9 billion into the asset management business, net new money for the whole of UBS this quarter was an exceptionally strong CHF 51.2 billion. This leaves UBS invested assets, at CHF 2,666 billion on 30 September 2005, 6% above the level at the end of second quarter, and 20% higher than the same date a year earlier.

    Total operating expenses were CHF 7,309 million, compared to CHF 6,293 million reported a year earlier. If goodwill amortization expenses for third quarter 2004 are excluded, operating expenses increased 20%, mainly reflecting higher personnel expenses. Personnel expenses rose 29% to CHF 5,320 million in third quarter 2005 from CHF 4,131 million a year earlier. Accruals for performance-related payments increased in line with revenues. Expenses for salaries, insurance and social contributions rose due to higher numbers of personnel across the firm.

    The number of people employed in the financial businesses was 70,502 on 30 September 2005, up 1,302 from 69,200 on 30 June 2005 and 3,095 higher than 67,407 on 31 December 2004, with increases in staff seen across almost all businesses. In Switzerland, headcount has risen by 847 since the end of last year, in Europe it is up 795, in the Americas 660 and in Asia Pacific 793.

October 2005

  1. UBS releases regrouped figures reflecting the transfer of the municipal finance business from the Wealth Management USA unit to the Investment Bank

    Change in reporting structure

    Following the recently announced integration of our two wealth management units, our reporting structure will change as of third quarter 2005. While not separately disclosed as a Business Group, full transparency on Wealth Management USA will be maintained by reporting it as a Business Unit under the newly formed Business Group Global Wealth Management & Business Banking.

    Transfer of the municipal finance business

    Through this business shift, CHF 43 million and CHF 78 million of pre-tax profit was transferred from Wealth Management USA into the Investment Bank for first half 2005 and full year 2004, respectively. While operating income of CHF 172 million and CHF 357 million was shifted, the business transfer also involved an operating expense shift in the amount of CHF 129 million and CHF 279 million for first half 2005 and full year 2004. This business transfer also impacted most of the key performance indicators (KPIs) of the affected Business Groups/Business Units and their VaR utilization.

September 2005

  1. UBS signs agreements to sell Motor-Columbus stake

    The transaction comprises the following key elements:

    UBS is selling 281,535 bearer shares in Motor-Columbus - equivalent to its stake of 55.6% - at a price of CHF 4,600 per share.

    A consortium of Atel's Swiss minority shareholders - EBM, EBL, the Canton of Solothurn, IBAarau and newcomers AIL Lugano and WWZ Zug - will purchase 14.7%, EOS Holding 16.4% and EDF 17.3% of Motor-Columbus's equity capital; the remaining 7.2% will be acquired by Atel.

    The transaction must be approved by various national and international authorities.

    The sale of UBS's stake in Motor-Columbus creates an opportunity to build a significant Swiss-European energy company with Swiss majority ownership. UBS expects a pre-tax gain of around CHF 350 million assuming the completion of the transaction in first quarter 2006. The gain will be reported in the "Industrial Holdings" segment of UBS.

  2. Senior Management Appointments

    Mark Branson, currently UBS's Chief Communication Officer, will become CEO of UBS Securities Japan Ltd, succeeding Simon Bunce, recently appointed Global Head of Fixed Income for UBS's Investment Bank. In his new role, reporting to Huw Jenkins, CEO, Investment Bank and Rory Tapner, Chairman and CEO, Asia Pacific, Mark Branson will oversee the development of UBS's Investment Bank in Japan and coordinate UBS Group activities in one of the world's largest and most important financial services markets.

    Tom Hill, currently Global Head of Equity Research, Investment Bank will succeed Mark Branson as Chief Communication Officer, reporting to Peter Wuffli, Group CEO. In his new role, Tom Hill will have firm-wide responsibility for managing UBS's communication with its stakeholders and for the UBS brand. Tom Hill will be based in Zurich.


August 2005

  1. UBS to report Second Quarter 2005 Results on August 9th

    Technical Test
    To view the webcast, please select one of the following choices. Please note that the live webcast will be in English.

July 2005

  1. Interview on the management changes announced on June 30th, 2005.

    Video interview with John Costas, Chairman UBS Investment Bank and Huw Jenkins, Chief Executive Officer Investment Bank on the management changes announced on June 30th, 2005.

June 2005

  1. UBS to integrate wealth management units, launch new alternative investment management business

    UBS today announces the integration of its two wealth management units. UBS's US, Swiss and international wealth management businesses, as well as its Swiss corporate and retail banking unit will be brought together in one Business Group titled Global Wealth Management & Business Banking under Chairman and CEO Marcel Rohner.

    While the relationships between advisors and their clients will not be in any way altered, UBS expects to benefit from economies of scale in bringing together functions supporting the advisors. The move will accelerate UBS's progress towards a consistent wealth management offering across the globe, and will make it even easier to fulfil clients' individual needs with sophisticated products and services from across UBS.

    Raoul Weil, head of UBS's wealth management business serving international clients, will join UBS's Group Executive Board from 1 July 2005.

    UBS's highly successful municipal finance unit, currently located within the Wealth Management USA business, will be transferred to the Investment Bank's Fixed Income, Rates and Currencies area.

    Robert Silver, currently President and Chief Operating Officer of the Wealth Management USA business, will oversee the integration of the wealth management units.

    Peter Wuffli, Chief Executive Officer, comments, "UBS acts as one firm, committed to deploying the powerful global resources of a 68,000-strong organization to the benefit of every one of our clients. We also integrate similar functions where it makes sense. We have a strong track record of benefiting from an integrated approach - the combination we are announcing today is the right next step made at the right time. Our US wealth management business has made huge progress under the leadership of Mark Sutton since PaineWebber joined UBS, growing market share, productivity, and profitability. That success has paved the way for this logical next move."

    Mark Sutton, currently Chairman and CEO of the Wealth Management USA business will be appointed to the new position of Chairman and CEO, Americas, responsible in the region for accelerating the development of UBS's client base and integrating the work of UBS's businesses. He will report directly to Peter Wuffli, Chief Executive Officer.

    He comments, "We can be proud of the achievements of the US wealth management business in the five years it has been with UBS. Now we can best continue that development by combining with the rest of UBS's global wealth management business. UBS has made a significant impact here in recent years across the wealth management, asset management, investment banking and securities businesses, and that growth will continue."

    All changes affecting the wealth management units and municipal finance business will be effective from 1 July 2005. Transparency over the performance of the US wealth management business will be retained.

    UBS also announces the formation of a new alternative investment management business, Dillon Read Capital Management. John Costas, currently Chairman and CEO of UBS's Investment Bank, will lead this business as CEO. Dillon Read Capital Management will form part of UBS's Global Asset Management business led by Chairman and CEO John Fraser. John Costas will leave UBS's Group Executive Board at the end of 2005. He will remain as non-executive Chairman of its Investment Bank.

    This new initiative will see UBS's Principal Finance and Commercial Real Estate trading businesses move from the Fixed Income, Rates and Currencies area of its Investment Bank to form the core of the new unit within the Global Asset Management business. Approximately 120 staff will transfer, mainly based in New York. Subsequently, the trading strategies managed by the team will be opened up to co-investment from sophisticated, principally institutional clients, and will be supplemented by further new offerings.

    In this way UBS will build a new stream of investment management fees from what has until now been a purely in-house trading activity. UBS will retain its current direct investment in the relevant trading portfolios, with any incremental future investments subject to UBS's usual risk management processes. This new business is similar in concept to other highly successful alternative asset management units within UBS, based on trading strategies developed within UBS's Investment Bank.

    Huw Jenkins, currently head of the Equities business, will succeed John Costas as CEO of UBS's Investment Bank, based in London. He will become a member of the Group Executive Board from 1 July 2005. Prior to running UBS's world-leading equities business, Huw Jenkins built its US equities franchise into a significant market force.

    Dillon Read Capital Management will be launched on or around 1 January 2006. All management changes concerning UBS's Investment Bank are effective 1 July 2005.

    John Costas comments, "I am terrifically excited to have this entrepreneurial opportunity to build a new business within UBS. Investors have huge appetite for alternative investment products backed up by the quality assurance of a global financial leader - we can fulfill that demand. I am proud of what we have achieved in building UBS's Investment Bank into a world leader, and am confident that Huw can build on our current momentum."

    Peter Wuffli added, "John Costas's track record at the helm of our Investment Bank speaks for itself. He has led the business into the top global bracket through a perfectly planned and executed program of organic growth. His decision to build a new business within UBS is an exciting prospect for all of us."

  2. UBS discussing a co-operation partnership with Bank of China

    It is envisaged that such a partnership would include commercial co-operation in certain areas of investment banking yet to be agreed, and the possibility that UBS could invest approximately USD500 million to become a strategic investor in BOC.

    The talks continue and further details are confidential.

May 2005

  1. Results from the Financial Businesses

    At the highest level ever recorded, Wealth Management pre-tax profit in first quarter 2005 was CHF 915 million, up 12% from CHF 818 million in fourth quarter 2004. The result was helped by the fact that goodwill amortization ceased in first quarter 2005. Excluding goodwill, the increase was 10%. The strong result reflected increased asset-based fees from the record invested asset base as well as higher client activity levels. Rising interest income, a reflection of the expansion of margin lending activities, also reinforced revenues. The higher client activity levels helped the gross margin on invested assets to rise to 104 basis points, up 5 basis points from fourth quarter 2004, when the margin was depressed by a number of timing effects.

    Net new money in first quarter 2005 was CHF 15.4 billion, up from CHF 6.5 billion in fourth quarter 2004. This intake was the second-best ever, just behind first quarter 2004. The International Clients area recorded CHF 14.5 billion in net new money, driven by a record high inflow of CHF 5.6 billion into the domestic European business and further strong contributions from Asian clients. The Swiss Clients area showed an inflow of CHF 0.9 billion, a clear improvement from the outflow of CHF 0.7 billion in fourth quarter 2004, which was influenced by seasonal withdrawals.

    The Business Banking Switzerland unit reported pre-tax profit of CHF 531 million in first quarter 2005, CHF 28 million or 6% higher than in fourth quarter 2004. The result shows the continued tight management of the cost base, with improved credit results reflecting the structural improvement of the loan portfolio in recent years. Total operating income was practically unchanged from fourth quarter 2004.
    The loan portfolio, at CHF 139.4 billion on 31 March 2005, was CHF 2.3 billion above the level on 31 December 2004. A strong increase in private client mortgages and slightly increased demand from corporate clients offset the ongoing workout of the recovery portfolio.

April 2005

February 2005

  1. UBS proposes candidates for election to the Board

    The UBS Board of Directors will propose two new members for election and two current directors for re-election at the Annual General Meeting of Shareholders (AGM) to be held on 21 April 2005 in Kloten / Zurich.

    Peter R. Voser, born in 1958, has been Chief Financial Officer (CFO) of The Royal Dutch/Shell Group of Companies, since October 2004, after having been CFO at ABB (Asea Brown Boveri) in Switzerland from March 2002 until September 2004. Before joining ABB, he was employed in various finance and business roles by the Royal Dutch/Shell Group of companies in Switzerland, the UK, Argentina and Chile.

    Marco Suter, born in 1958, has been Group Chief Credit Officer of UBS since 1999. He will be proposed as executive member of the Board, replacing Alberto Togni who reaches retirement age and is therefore stepping down from his function. The nomination of Marco Suter was announced in September 2003 and has now been confirmed by the Board.

    "Both nominees will add crucial skills to our Board  Marco Suter his in-depth knowledge of banking and specifically of risk control, Peter R. Voser his long-term experience in international financial management", Marcel Ospel, Chairman of the Board of Directors, commented.

    The Board of Directors will also ask the AGM to re-elect Chairman Marcel Ospel and Board member Lawrence A. Weinbach, executive chairman of Unisys Corporation, whose terms of office expire at the 2005 AGM.

  2. Chief Risk Officer Walter Stuerzinger appointed to UBS Group Executive Board

    UBS has an excellent recent track record in risk management. Sustaining that excellence will be no less important in the years ahead. UBS is therefore enhancing the roles of the key individuals who have been responsible for building the firm's risk control success over the past few years.

    As announced in 2004, Marco Suter, Chief Credit Officer since 1999, will be proposed for election to the Board of Directors at the upcoming Annual General Meeting on 21 April 2005. On election, he would be appointed Executive Vice-Chairman with specific responsibility for overseeing risk policy and controls.

    Effective March 1 2005, Walter Stuerzinger, Chief Risk Officer since 2001, will be appointed to UBS's Group Executive Board, reporting to Peter Wuffli, Chief Executive Officer. Walter Stuerzinger will assume firm-wide responsibility for market, operational and credit risk control.

    Philip Lofts, currently Chief Credit Officer of UBS's Investment Bank will succeed Marco Suter as UBS's Chief Credit Officer, and will report in his new role to Walter Stuerzinger.

    CVs

    Walter Stuerzinger
    Walter Stuerzinger has been Chief Risk Officer and Member of the Group Managing Board since 2001. From 1994 to 2001, he headed the Group Internal Audit unit. Walter Stuerzinger joined the Union Bank of Switzerland in 1994, from Credit Suisse, where he held a variety of posts in controlling. Walter Stuerzinger was born on 6 July 1955. He is a Swiss citizen.

    Marco Suter
    Marco Suter has been Chief Credit Officer and Member of the Group Managing Board since 1999. Since joining Swiss Bank Corporation in 1974, he has held a wide variety of positions. Between 1996 and 1998, he was Regional Manager, Corporate and Institutional Clients in Zurich and St. Gallen. From 1994 to 1996, he was Chief Credit Officer Europe, Middle East and Africa for Warburg Dillon Read, based in London. Marco Suter was born on 7 May 1958. He is a Swiss citizen.

    Philip J. Lofts
    Philip Lofts was appointed Chief Credit Officer for the Investment Bank in 2003, and was appointed to the Group Managing Board in 2004. Since joining UBS's Investment Bank in 1984 he has held a variety of positions, including Chief Credit Officer for Asia Pacific from 1998 - 2002, and for the Americas from 2002 - 2003. Philip Lofts was born on 9 April 1962. He is a British citizen.

  3. Results from the Financial Businesses

    Wealth Management & Business Banking

    Despite the weakening of the US dollar against the Swiss franc, Wealth Management's full-year 2004 pre-tax profit, at CHF 3,435 million, was up 32% from 2003. This increase reflects the growth momentum in the business and the recovery in major financial markets that started in mid-2003, driving a 13% increase in revenues through higher asset-based fees. Rising interest income, a reflection of the expansion of margin lending activities, also bolstered revenues. At the same time, expenses, up just 2% in 2004 from 2003, were kept under tight control. Net new money inflows for the year totaled CHF 42.3 billion, up 42% from CHF 29.7 billion in 2003. Gains were reported in all geographical areas, especially from Asian clients. The CHF 13.7 billion inflow into the European wealth management business was again particularly strong.

    In fourth quarter 2004, profit before tax stood at CHF 831 million, 3% lower than in third quarter. Higher non-personnel expenses, related to continued business growth, coincided with virtually flat income. The gross margin on invested assets was 99 basis points, down 2 basis points from the previous quarter. This was partially due to the first-time booking of invested assets acquired with Sauerborn Trust at the end of fourth quarter 2004 (CHF 9 billion) without corresponding revenues. Excluding this effect, the margin declined by 1 basis point.

    Business Banking Switzerland reported a pre-tax profit of CHF 2,045 million for full-year 2004, down 5% from the record result achieved in 2003. It was achieved despite a CHF 184 million fall in income, driven mainly by lower interest income, and shows the continued tight management of costs. Lower credit loss expenses reflected the structural improvement in the domestic loan portfolio in recent years.

    During the course of 2004, CHF 7 billion in assets were transferred from the Business Banking Switzerland unit to the Wealth Management unit, reflecting the increasing needs of clients through their life cycle.

    Fourth quarter 2004 pre-tax profit was CHF 510 million, down 1% from third quarter 2004, mainly due to lower non-interest income. The third quarter result benefited from a gain on the divestment of the Noga Hilton hotel.

  4. UBS to announce fourth quarter results

    All Fourth Quarter Results material will be published here from 7am (CET), including:
    - quarterly report
    - interactive report
    - media release
    - shareholders' letter
    - video clip with key messages from Peter Wuffli and Clive Standish
    - slide presentation


    The event will be re-broadcast at 2pm. An indexed version of the webcast will be available on demand from 6pm.

December 2004

  1. UBS receives Wells Notice from SEC relating to HealthSouth

    UBS announced today that it has received a "Wells Notice" from the staff of the United States Securities and Exchange Commission (SEC). The Wells Notice notifies UBS that the SEC staff is considering recommending that the SEC bring civil enforcement proceedings against UBS for possible violations of federal securities laws arising from work performed by UBS's Investment Bank for HealthSouth Corp., a US healthcare company.

    Under SEC procedures, the Wells Notice affords UBS an opportunity to present its position to the SEC staff before the staff makes a formal recommendation regarding any action to be taken against the firm.

    UBS has been cooperating fully with all relevant authorities investigating the HealthSouth case, and will continue to offer the SEC its full cooperation.

November 2004

  1. UBS reports third quarter net profit of CHF 1,671 million

    UBS reports net profit of CHF 1,671 million in third quarter 2004. This includes the fully consolidated results of Motor-Columbus, an industrial holding of which UBS now owns a majority 55.6% stake , and which contributed net profit of CHF 17 million. Excluding this participation, UBS's Financial Businesses net profit was CHF 1,654 million in third quarter, down 2% from third quarter 2003 and 16% lower than second quarter 2004.

    Despite the anticipated slowdown in trading opportunities, UBS generated solid revenues in third quarter, thanks to the scale of its invested asset base - which totaled CHF 2.3 trillion on 30 September 2004. Operating income for the Financial Businesses was CHF 8,456 million, down slightly (1%) from the same quarter a year earlier. Revenues rose in the wealth and asset management businesses, reflecting strong inflows of net new money and higher market levels, prompting rising asset-based revenues and, in particular, record portfolio management fees. The private equity portfolio has now provided a positive contribution to Investment Bank results for four consecutive quarters.

    These positive effects were offset by a drop in trading-related revenues, with equities and fixed income trading both experiencing declines of around 20%.

    "Being a major player in the world's securities markets means that our Investment Bank's revenues will reflect prevailing market opportunities," said Clive Standish, Chief Financial Officer. "All the more important, then, that we balance that volatility with strong fee and commission revenues - which represent more than half of our operating income."

    In third quarter, net new money for UBS as a whole was CHF 20.5 billion. Wealthy individual clients worldwide contributed CHF 16.7 billion - which means that during the first nine months of this year, UBS's wealth management businesses have gathered a total of CHF 46.1 billion in new assets, corresponding to an annualized growth rate of 5%.

    UBS experienced another excellent credit result, posting a net credit recovery of CHF 14 million in third quarter 2004, compared to a recovery of CHF 42 million a year earlier.

    Total operating expenses for the Financial Businesses decreased 1% to CHF 6,265 million as personnel expenses were pushed down 6% by lower accruals for performance-related compensation, especially at the Investment Bank.

    Headcount in UBS's Financial Businesses was 66,894 on 30 September 2004, up 965 from the beginning of the year. Increases were seen in the Investment Bank, which saw staffing growth across business and support functions, as well as in Wealth Management, reflecting continued hiring of client advisors.


    Consolidation of Motor-Columbus
    From this quarter onwards, UBS is fully consolidating the results of Motor-Columbus, a Swiss holding company whose most significant asset is a majority ownership interest in Swiss-based electricity provider Atel. Earlier this year, UBS increased its stake in Motor-Columbus to 55.6% in order to protect the value of its existing investment and, as a majority shareholder, divest it profitably in the future. Motor-Columbus results will be reported in a separate Industrial Holdings unit, helping UBS to preserve full continuity in the presentation of its core financial businesses.
    The Industrial Holdings unit contributed CHF 17 million to UBS's net profit in third quarter (1% of net profit). It represented 16.7% of operating income, and 20.6% of operating expense in the quarter.


    Brand campaign successful
    One of the key elements in UBS's growth strategy is the firm's investment in building a strong brand. Earlier this year, UBS launched the "You & Us" global advertising campaign, showing how UBS delivers global financial resources through personal client relationships based on intimate understanding. A recent analysis of the first results of the campaign found that awareness of UBS is rising in all regions, and particularly in the US. UBS's target clients remember and appreciate the advertising - which represents an important step in the firm's long-term commitment to build a distinct profile in the highly competitive financial services industry.


    Outlook
    In the first nine months of 2004, market conditions for UBS's trading-related businesses have swung considerably - from an exceptionally favorable first quarter to the rather tough environment in third quarter. In that context, UBS's diversified business mix has paid off, helping the firm to capture the revenue opportunities in equity and fixed income markets when they were buoyant, with the wealth and asset management businesses providing a counterbalance when trading conditions normalized.
    While global economic fundamentals look rather positive, market participants are currently unsure about how long the current growth will last. "Despite the uncertainty that continues to weigh on financial markets and which may again dampen levels of investor activity, it looks as though 2004 will turn out to be one of UBS's best years," said Clive Standish.


    Financial ratios
    Annualized return on equity for the first nine months of 2004 was 24.5%, compared to 16.6% a year earlier. Basic earnings per share were CHF 1.60 in third quarter 2004, compared to CHF 1.53 a year earlier. The cost/income ratio was 74.2%, compared to 75.1% a year earlier.

    Performance against UBS financial targets
    (pre-goodwill and adjusted for significant financial events)
    UBS sets its financial targets and evaluates performance in terms of adjusted results, excluding significant financial events and excluding the amortization of goodwill and other intangible assets.
    UBS's performance against financial targets shows:
    - Annualized return on equity in the first nine months of 2004 was 27.4%, up from 19.2% a year earlier and well above the target range of 15 to 20%. The increase reflects higher net profit combined with a lower average equity resulting from continued buyback programs and increased dividend, outpacing retained earnings.
    - Basic earnings per share were CHF 1.86, up 7% from CHF 1.74 in the same quarter a year earlier, driven by a reduction in average number of shares outstanding through ongoing repurchase of shares.
    - The cost/income ratio for UBS's Financial Businesses was 71.5%, an improvement from 72.2% in the same period last year, and near historical lows. The decline was driven by performance-related compensation falling faster than revenues.

  2. UBS reports third quarter net profit of CHF 1,671 million

    UBS reports net profit of CHF 1,671 million in third quarter 2004. This includes the fully consolidated results of Motor-Columbus, an industrial holding of which UBS now owns a majority 55.6% stake , and which contributed net profit of CHF 17 million. Excluding this participation, UBS's Financial Businesses net profit was CHF 1,654 million in third quarter, down 2% from third quarter 2003 and 16% lower than second quarter 2004.

    Despite the anticipated slowdown in trading opportunities, UBS generated solid revenues in third quarter, thanks to the scale of its invested asset base - which totaled CHF 2.3 trillion on 30 September 2004. Operating income for the Financial Businesses was CHF 8,456 million, down slightly (1%) from the same quarter a year earlier. Revenues rose in the wealth and asset management businesses, reflecting strong inflows of net new money and higher market levels, prompting rising asset-based revenues and, in particular, record portfolio management fees. The private equity portfolio has now provided a positive contribution to Investment Bank results for four consecutive quarters.

    These positive effects were offset by a drop in trading-related revenues, with equities and fixed income trading both experiencing declines of around 20%.

    "Being a major player in the world's securities markets means that our Investment Bank's revenues will reflect prevailing market opportunities," said Clive Standish, Chief Financial Officer. "All the more important, then, that we balance that volatility with strong fee and commission revenues - which represent more than half of our operating income."

    In third quarter, net new money for UBS as a whole was CHF 20.5 billion. Wealthy individual clients worldwide contributed CHF 16.7 billion - which means that during the first nine months of this year, UBS's wealth management businesses have gathered a total of CHF 46.1 billion in new assets, corresponding to an annualized growth rate of 5%.

    UBS experienced another excellent credit result, posting a net credit recovery of CHF 14 million in third quarter 2004, compared to a recovery of CHF 42 million a year earlier.

    Total operating expenses for the Financial Businesses decreased 1% to CHF 6,265 million as personnel expenses were pushed down 6% by lower accruals for performance-related compensation, especially at the Investment Bank.

    Headcount in UBS's Financial Businesses was 66,894 on 30 September 2004, up 965 from the beginning of the year. Increases were seen in the Investment Bank, which saw staffing growth across business and support functions, as well as in Wealth Management, reflecting continued hiring of client advisors.


    Consolidation of Motor-Columbus
    From this quarter onwards, UBS is fully consolidating the results of Motor-Columbus, a Swiss holding company whose most significant asset is a majority ownership interest in Swiss-based electricity provider Atel. Earlier this year, UBS increased its stake in Motor-Columbus to 55.6% in order to protect the value of its existing investment and, as a majority shareholder, divest it profitably in the future. Motor-Columbus results will be reported in a separate Industrial Holdings unit, helping UBS to preserve full continuity in the presentation of its core financial businesses.
    The Industrial Holdings unit contributed CHF 17 million to UBS's net profit in third quarter (1% of net profit). It represented 16.7% of operating income, and 20.6% of operating expense in the quarter.


    Brand campaign successful
    One of the key elements in UBS's growth strategy is the firm's investment in building a strong brand. Earlier this year, UBS launched the "You & Us" global advertising campaign, showing how UBS delivers global financial resources through personal client relationships based on intimate understanding. A recent analysis of the first results of the campaign found that awareness of UBS is rising in all regions, and particularly in the US. UBS's target clients remember and appreciate the advertising - which represents an important step in the firm's long-term commitment to build a distinct profile in the highly competitive financial services industry.


    Outlook
    In the first nine months of 2004, market conditions for UBS's trading-related businesses have swung considerably - from an exceptionally favorable first quarter to the rather tough environment in third quarter. In that context, UBS's diversified business mix has paid off, helping the firm to capture the revenue opportunities in equity and fixed income markets when they were buoyant, with the wealth and asset management businesses providing a counterbalance when trading conditions normalized.
    While global economic fundamentals look rather positive, market participants are currently unsure about how long the current growth will last. "Despite the uncertainty that continues to weigh on financial markets and which may again dampen levels of investor activity, it looks as though 2004 will turn out to be one of UBS's best years," said Clive Standish.


    Financial ratios
    Annualized return on equity for the first nine months of 2004 was 24.5%, compared to 16.6% a year earlier. Basic earnings per share were CHF 1.60 in third quarter 2004, compared to CHF 1.53 a year earlier. The cost/income ratio was 74.2%, compared to 75.1% a year earlier.

    Performance against UBS financial targets
    (pre-goodwill and adjusted for significant financial events)
    UBS sets its financial targets and evaluates performance in terms of adjusted results, excluding significant financial events and excluding the amortization of goodwill and other intangible assets.
    UBS's performance against financial targets shows:
    - Annualized return on equity in the first nine months of 2004 was 27.4%, up from 19.2% a year earlier and well above the target range of 15 to 20%. The increase reflects higher net profit combined with a lower average equity resulting from continued buyback programs and increased dividend, outpacing retained earnings.
    - Basic earnings per share were CHF 1.86, up 7% from CHF 1.74 in the same quarter a year earlier, driven by a reduction in average number of shares outstanding through ongoing repurchase of shares.
    - The cost/income ratio for UBS's Financial Businesses was 71.5%, an improvement from 72.2% in the same period last year, and near historical lows. The decline was driven by performance-related compensation falling faster than revenues.

August 2004

  1. UBS reports second quarter net profit of CHF 1,974 million

    UBS reports net profit of CHF 1,974 million in second quarter. This represents the second best quarterly performance since 2000, 19% lower than the record result achieved in first quarter. Compared to a year earlier, second quarter net profit rose 28% -- or 24%, once goodwill and the gain from the prior-year sale of the Correspondent Services Corporation (CSC) clearing subsidiary are excluded. For the first half of 2004, UBS records a net profit of CHF 4,397 million, up 60% from 2003 (up 50% excluding goodwill and the disposal gain).

    After the very favorable business environment seen in first quarter 2004, the second quarter saw a slowdown in pace as equity investors became less active, and rising interest rates and low volatility drove volume out of the fixed income markets.

    "Halfway through 2004, we can see that the markets' astonishing start to the year has settled into a more normal rhythm. In that context, this was a good quarter for UBS, demonstrating the importance of having the world's leading wealth management operation as a central part of our focused strategy," said Peter Wuffli, Chief Executive Officer.

    "This quarter, strong asset-based fees from our wealth management and asset management franchises, alongside the progress of our corporate client franchise, have helped us to balance lower securities revenues," added Clive Standish, Chief Financial Officer.

    Compared to second quarter a year earlier, operating income grew 6%. Fee and commission income was strong (up 12%), accounting for more than 50% of total revenues. The Investment Bank posted excellent results in its corporate advisory businesses as clients took advantage of strategic opportunities and favorable financing terms. Asset-based revenues in the wealth and asset management businesses were particularly good, with record levels of investment fund fees. In addition, the previously troubled private equity business posted another positive quarter.

    Credit businesses benefited from the stable economic environment. UBS recorded a net recovery of CHF 131 million in the quarter, after net recoveries of CHF 3 million and CHF 1 million in first quarter 2004 and second quarter 2003, respectively.

    The total level of invested assets rose 7% to CHF 2.2 trillion, driven by the year-on-year recovery in financial markets, as well as the CHF 85.7 billion inflow of net new money in the last 12 months. Inflows in second quarter totaled CHF 16.9 billion, with CHF 10.4 billion coming into the wealth management businesses.

    Total operating expenses were up 2% in second quarter from a year earlier due to an increase in operational risk costs, among them the USD 100 million (CHF 128 million) penalty levied by the Federal Reserve Board related to the banknote trading business.

    Headcount on 30 June 2004 was 66,043, up 114 from the beginning of the year. Staffing levels have increased in Europe, mainly due to the integration of acquired wealth management businesses in Germany and the UK.

    Outlook
    In 2003, UBS's earnings deviated from their usual seasonality, with results weaker in the first half of the year than in the second. In contrast, the first quarter of this year saw excellent conditions, providing UBS with exceptional revenue opportunities. Such favorable combinations can't last -- opportunities have to be captured as they arise. However, UBS's diversified revenue mix helps the firm to perform strongly across varying market conditions. In second quarter, for instance, strong asset-based fees have helped to balance reduced securities revenues.

    While investor sentiment has recovered from the very low levels of last year, it still remains subdued. Combined with directionless markets and the expectation of rising interest rates, this may continue to dampen levels of market activity.

    "Since many of our businesses, especially our Investment Bank, have activity as an important driver, we should expect a return to a more normal seasonal pattern this year, with second half revenues not matching those in the first half," said Peter Wuffli.

    Financial ratios
    Annualized return on equity for the first six months of 2004 was 26.5%, compared to 15.1% a year earlier. Basic earnings per share were CHF 1.85 in second quarter 2004, against CHF 1.35 in the same quarter a year earlier. The cost/income ratio was 73.7% in second quarter 2004, down from 75.6% a year earlier.

    Performance against UBS financial targets
    (pre-goodwill and adjusted for significant financial events)
    UBS sets its financial targets and evaluates performance in terms of adjusted results, excluding significant financial events* and excluding the amortization of goodwill and other intangible assets.
    UBS's performance against financial targets shows:

  2. UBS reports second quarter net profit of CHF 1,974 million

    UBS reports net profit of CHF 1,974 million in second quarter. This represents the second best quarterly performance since 2000, 19% lower than the record result achieved in first quarter. Compared to a year earlier, second quarter net profit rose 28% -- or 24%, once goodwill and the gain from the prior-year sale of the Correspondent Services Corporation (CSC) clearing subsidiary are excluded. For the first half of 2004, UBS records a net profit of CHF 4,397 million, up 60% from 2003 (up 50% excluding goodwill and the disposal gain).

    After the very favorable business environment seen in first quarter 2004, the second quarter saw a slowdown in pace as equity investors became less active, and rising interest rates and low volatility drove volume out of the fixed income markets.

    "Halfway through 2004, we can see that the markets' astonishing start to the year has settled into a more normal rhythm. In that context, this was a good quarter for UBS, demonstrating the importance of having the world's leading wealth management operation as a central part of our focused strategy," said Peter Wuffli, Chief Executive Officer.

    "This quarter, strong asset-based fees from our wealth management and asset management franchises, alongside the progress of our corporate client franchise, have helped us to balance lower securities revenues," added Clive Standish, Chief Financial Officer.

    Compared to second quarter a year earlier, operating income grew 6%. Fee and commission income was strong (up 12%), accounting for more than 50% of total revenues. The Investment Bank posted excellent results in its corporate advisory businesses as clients took advantage of strategic opportunities and favorable financing terms. Asset-based revenues in the wealth and asset management businesses were particularly good, with record levels of investment fund fees. In addition, the previously troubled private equity business posted another positive quarter.

    Credit businesses benefited from the stable economic environment. UBS recorded a net recovery of CHF 131 million in the quarter, after net recoveries of CHF 3 million and CHF 1 million in first quarter 2004 and second quarter 2003, respectively.

    The total level of invested assets rose 7% to CHF 2.2 trillion, driven by the year-on-year recovery in financial markets, as well as the CHF 85.7 billion inflow of net new money in the last 12 months. Inflows in second quarter totaled CHF 16.9 billion, with CHF 10.4 billion coming into the wealth management businesses.

    Total operating expenses were up 2% in second quarter from a year earlier due to an increase in operational risk costs, among them the USD 100 million (CHF 128 million) penalty levied by the Federal Reserve Board related to the banknote trading business.

    Headcount on 30 June 2004 was 66,043, up 114 from the beginning of the year. Staffing levels have increased in Europe, mainly due to the integration of acquired wealth management businesses in Germany and the UK.

    Outlook
    In 2003, UBS's earnings deviated from their usual seasonality, with results weaker in the first half of the year than in the second. In contrast, the first quarter of this year saw excellent conditions, providing UBS with exceptional revenue opportunities. Such favorable combinations can't last -- opportunities have to be captured as they arise. However, UBS's diversified revenue mix helps the firm to perform strongly across varying market conditions. In second quarter, for instance, strong asset-based fees have helped to balance reduced securities revenues.

    While investor sentiment has recovered from the very low levels of last year, it still remains subdued. Combined with directionless markets and the expectation of rising interest rates, this may continue to dampen levels of market activity.

    "Since many of our businesses, especially our Investment Bank, have activity as an important driver, we should expect a return to a more normal seasonal pattern this year, with second half revenues not matching those in the first half," said Peter Wuffli.

    Financial ratios
    Annualized return on equity for the first six months of 2004 was 26.5%, compared to 15.1% a year earlier. Basic earnings per share were CHF 1.85 in second quarter 2004, against CHF 1.35 in the same quarter a year earlier. The cost/income ratio was 73.7% in second quarter 2004, down from 75.6% a year earlier.

    Performance against UBS financial targets
    (pre-goodwill and adjusted for significant financial events)
    UBS sets its financial targets and evaluates performance in terms of adjusted results, excluding significant financial events* and excluding the amortization of goodwill and other intangible assets.
    UBS's performance against financial targets shows:

July 2004

  1. UBS's position in own shares below reporting limit of 10%

    The 59,482,000 shares purchased under the 2003 share buyback program have been cancelled after the fulfillment of legal requirements. Therefore, the number of UBS shares issued has decreased from 1,183,046,764 at year end to 1'125'400'202.

June 2004

  1. Investors Day 2004

    Rebroadcast of the event now available.

May 2004

  1. UBS statement on regulatory actions by the U.S. Federal Reserve and the Swiss Federal Banking Commission

    In 1996, UBS, through its Investment Bank, entered an agreement with the Federal Reserve Bank of New York (NY FED) as part of the "Extended Custodial Inventory Program"(ECI). The ECI agreement allowed UBS to maintain in Zurich a depot for US dollar banknotes for the NY FED. Such depots are established with private sector banks in order to ease the introduction and circulation of new US dollar banknotes while retiring old ones.

    As part of the agreement, UBS undertook not to deliver, accept or deposit US dollar banknotes into or out of the NY FED depot to or from clients in countries facing US trade restrictions.

    After NY FED enquiries, UBS found that banknotes had been traded with Cuba, Iran, Libya and Yugoslavia, in breach of the agreement.

    UBS subsequently launched, in close co-operation with the authorities, a comprehensive internal investigation, with a taskforce including outside counsel.

    That investigation further revealed that the former employees involved had submitted false reports to the NY FED concealing the transactions in question.

    As a consequence of these findings, and having taken into account UBS's co-operation, the FED has announced that it will levy a civil penalty of USD 100 million. The SFBC has reprimanded UBS, and will make inspections to assess the effectiveness of UBS's corrective measures.

    Peter Wuffli, Chief Executive Officer, said: "UBS recognizes that very serious mistakes were made. We accept the sanctions, take full responsibility, and would like to express our regret. We have already instituted a number of corrective and disciplinary measures. The behavior highlighted by the investigation cannot and will not be tolerated in UBS. We will do everything we can to prevent similar incidents and put this matter behind us."

    Several employees have been dismissed. Disciplinary measures were taken against other employees.

    In addition, UBS has decided to end its banknotes trading business with counterparties in countries outside Switzerland. UBS will in future limit its banknotes business to physical delivery to financial institutions in Switzerland and Liechtenstein. The banknotes trading to be discontinued is an immaterial part of UBS's foreign exchange business. UBS has no intention to re-enter this business.

  2. UBS reports first quarter net profit of CHF 2,423 million

    UBS reports net profit of CHF 2,423 million in first quarter 2004, a 100% rise from the same period a year earlier, and the best quarterly performance on record. Before goodwill amortization, net profit rose 82%.

    "This outstanding performance reflects the excellent conditions in major financial markets. It also shows the payoff from investing in our businesses countercyclically over the past few years -- positioning ourselves for exactly these kinds of opportunities. And it demonstrates that we are growth managers as well as cost and risk managers," said Peter Wuffli, Chief Executive Officer.

    All businesses reported both revenue and pre-tax profit gains in first quarter compared to a year earlier. The Investment Bank recorded a 115% gain in pre-tax profit, with results driven by the best fixed income and second best equities performances since 2000. The Wealth Management and Global Asset Management businesses reported their best results in three years, and the Wealth Management USA business saw its best operating performance since PaineWebber became part of UBS.

    Net new money flows show that UBS's wealth and asset management businesses are growing fast. This quarter saw clients adding a total of CHF 35.1 billion to their investments with UBS. Inflows from institutional asset management clients reached an all-time high of CHF 10.1 billion. Private clients contributed a record CHF 19.0 billion to the wealth management businesses worldwide, compared to CHF 11.1 billion a year earlier and CHF 14.2 billion in fourth quarter 2003. The domestic European wealth management business saw a record inflow of CHF 4.2 billion.

    Operating income was up 33% from first quarter 2003 to its highest quarterly level ever. Revenues rose across all categories. The increase in market levels positively impacted the asset base of the wealth and asset management businesses, prompting fee-based revenue to rise. Fee and brokerage income profited from the seasonally strong first quarter and a much improved market environment that saw significantly increased institutional and private client activity.
    Corporate finance fees grew 75% in an improving M&A environment, with the total global corporate fee pool increasing by 40%.

    Increased market risk limits allowed UBS to take advantage of the favorable trading conditions in first quarter. Set against a 34% increase in average Value at Risk (VaR) compared to a year earlier, total income from trading activities rose 33%. Equities trading income was at its highest level since first quarter 2001, driven by a rapid expansion in market volumes, far higher client activity levels and therefore a significant improvement in trading opportunities. Proprietary trading revenues recovered sharply from the particularly weak first quarter in 2003. Fixed income trading continued to perform strongly, driven by another quarter of favorable interest rates and yield curve configuration, alongside strong client flows.

    UBS experienced another excellent credit result, posting a net credit recovery of CHF 3 million in first quarter 2004 compared to a credit loss expense of CHF 69 million a year earlier.
    Operating expenses, up 17% from first quarter 2003, rose far less than revenues, with the increase mainly reflecting higher accruals for performance-related compensation.


    Global brand campaign launched
    One of the key elements in UBS's growth strategy is the firm's investment in building a strong brand. This was reflected in a new global advertising campaign launched in February. The campaign -- themed "You and us" -- shows how UBS delivers global financial resources through personal client relationships based on intimate understanding. The advertising investment concentrates on key markets where UBS needs to further build familiarity with its brand in order to achieve its growth targets -- particularly the US.


    Senior executive appointment
    Georges Gagnebin, currently Chairman of the Wealth Management & Business Banking Business Group, has decided to pursue a new challenge within UBS. On 1 October 2004, he will step down from the Group Executive Board to focus full-time on his role as Vice Chairman of the holding company housing our independent private banks and the GAM asset management business.
    Georges Gagnebin held several senior management roles with UBS over the last 13 years, and was head of the firm's private banking business from 2000 to the middle of 2002. UBS is grateful for his valuable contribution in building the firm's wealth management business into the leading franchise worldwide.


    Outlook
    For UBS, the year started with an extremely strong first quarter. Conditions in all businesses were simultaneously excellent. As the year progresses, such a positive combination of circumstances is not likely to continue, in particular given the natural seasonality which boosts the first quarter in some businesses.
    "With our businesses firing on all cylinders and the growth indicators all showing positive, we have every reason to feel optimistic about UBS's future," said Clive Standish, Chief Financial Officer.


    Financial ratios
    Annualized return on equity for first quarter 2004 was 29.2%, compared to 13.2% a year earlier. Basic earnings per share were CHF 2.25 in first quarter 2004, compared to CHF 1.05 a year earlier. The cost/income ratio was 70.0%, compared to 78.8% a year earlier.


    Performance against UBS financial targets
    (pre-goodwill and adjusted for significant financial events)
    UBS sets its financial targets and evaluates performance in terms of adjusted results, excluding significant financial events* and excluding the amortization of goodwill and other intangible assets.
    UBS's performance against financial targets shows:

  3. UBS reports first quarter net profit of CHF 2,423 million

    UBS reports net profit of CHF 2,423 million in first quarter 2004, a 100% rise from the same period a year earlier, and the best quarterly performance on record. Before goodwill amortization, net profit rose 82%.

    "This outstanding performance reflects the excellent conditions in major financial markets. It also shows the payoff from investing in our businesses countercyclically over the past few years -- positioning ourselves for exactly these kinds of opportunities. And it demonstrates that we are growth managers as well as cost and risk managers," said Peter Wuffli, Chief Executive Officer.

    All businesses reported both revenue and pre-tax profit gains in first quarter compared to a year earlier. The Investment Bank recorded a 115% gain in pre-tax profit, with results driven by the best fixed income and second best equities performances since 2000. The Wealth Management and Global Asset Management businesses reported their best results in three years, and the Wealth Management USA business saw its best operating performance since PaineWebber became part of UBS.

    Net new money flows show that UBS's wealth and asset management businesses are growing fast. This quarter saw clients adding a total of CHF 35.1 billion to their investments with UBS. Inflows from institutional asset management clients reached an all-time high of CHF 10.1 billion. Private clients contributed a record CHF 19.0 billion to the wealth management businesses worldwide, compared to CHF 11.1 billion a year earlier and CHF 14.2 billion in fourth quarter 2003. The domestic European wealth management business saw a record inflow of CHF 4.2 billion.

    Operating income was up 33% from first quarter 2003 to its highest quarterly level ever. Revenues rose across all categories. The increase in market levels positively impacted the asset base of the wealth and asset management businesses, prompting fee-based revenue to rise. Fee and brokerage income profited from the seasonally strong first quarter and a much improved market environment that saw significantly increased institutional and private client activity.
    Corporate finance fees grew 75% in an improving M&A environment, with the total global corporate fee pool increasing by 40%.

    Increased market risk limits allowed UBS to take advantage of the favorable trading conditions in first quarter. Set against a 34% increase in average Value at Risk (VaR) compared to a year earlier, total income from trading activities rose 33%. Equities trading income was at its highest level since first quarter 2001, driven by a rapid expansion in market volumes, far higher client activity levels and therefore a significant improvement in trading opportunities. Proprietary trading revenues recovered sharply from the particularly weak first quarter in 2003. Fixed income trading continued to perform strongly, driven by another quarter of favorable interest rates and yield curve configuration, alongside strong client flows.

    UBS experienced another excellent credit result, posting a net credit recovery of CHF 3 million in first quarter 2004 compared to a credit loss expense of CHF 69 million a year earlier.
    Operating expenses, up 17% from first quarter 2003, rose far less than revenues, with the increase mainly reflecting higher accruals for performance-related compensation.


    Global brand campaign launched
    One of the key elements in UBS's growth strategy is the firm's investment in building a strong brand. This was reflected in a new global advertising campaign launched in February. The campaign -- themed "You and us" -- shows how UBS delivers global financial resources through personal client relationships based on intimate understanding. The advertising investment concentrates on key markets where UBS needs to further build familiarity with its brand in order to achieve its growth targets -- particularly the US.


    Senior executive appointment
    Georges Gagnebin, currently Chairman of the Wealth Management & Business Banking Business Group, has decided to pursue a new challenge within UBS. On 1 October 2004, he will step down from the Group Executive Board to focus full-time on his role as Vice Chairman of the holding company housing our independent private banks and the GAM asset management business.
    Georges Gagnebin held several senior management roles with UBS over the last 13 years, and was head of the firm's private banking business from 2000 to the middle of 2002. UBS is grateful for his valuable contribution in building the firm's wealth management business into the leading franchise worldwide.


    Outlook
    For UBS, the year started with an extremely strong first quarter. Conditions in all businesses were simultaneously excellent. As the year progresses, such a positive combination of circumstances is not likely to continue, in particular given the natural seasonality which boosts the first quarter in some businesses.
    "With our businesses firing on all cylinders and the growth indicators all showing positive, we have every reason to feel optimistic about UBS's future," said Clive Standish, Chief Financial Officer.


    Financial ratios
    Annualized return on equity for first quarter 2004 was 29.2%, compared to 13.2% a year earlier. Basic earnings per share were CHF 2.25 in first quarter 2004, compared to CHF 1.05 a year earlier. The cost/income ratio was 70.0%, compared to 78.8% a year earlier.


    Performance against UBS financial targets
    (pre-goodwill and adjusted for significant financial events)
    UBS sets its financial targets and evaluates performance in terms of adjusted results, excluding significant financial events* and excluding the amortization of goodwill and other intangible assets.
    UBS's performance against financial targets shows:

April 2004

  1. Annual General Meeting of UBS

  2. UBS to acquire 20% stake in Motor-Columbus from RWE

    Zurich / Basel, April 5, 2004 -- As a package, UBS will purchase RWE's 101,200 Motor-Columbus shares for CHF 3,700 each and 37,253 registered Aare Tessin AG für Elektrizitaet (Atel) shares for CHF 1,220 each.

    The transaction will raise UBS's stake in Motor-Columbus from 35.6% to 55.6%. In accordance with the opting-out clause within the articles of incorporation of Motor-Columbus, UBS will refrain from submitting a mandatory offer to other shareholders of Motor-Columbus.

    Motor-Columbus holds a 58.5% stake in Atel. On the basis of the acquisition of a majority stake in Motor-Columbus and thus indirect control of Atel, UBS will submit a mandatory takeover offer to Atel's other shareholders of CHF 1,230 a share. The price corresponds to the average opening price as traded on the Swiss Exchange in the preceding 30 trading days.
    The planned transaction allows UBS to maintain the value of its non-core participation in Motor-Columbus and to sell this stake to a strategic investor from a strong position as majority shareholder, thereby finding a long-term solution with industrial logic for both Motor-Columbus and Atel.

    The transaction is subject to approval by the competition authorities. The Takeover Board will rule on whether UBS will have to make a separate mandatory takeover offer for Atel's subsidiary Società Elettrica Sopracenerina (Sopracenerina). Motor-Columbus is expected to be fully consolidated in the UBS financial statements for the second quarter of 2004, and to be shown in a separate business unit.

    Transaction overview:

March 2004

  1. UBS commences new share buyback program

    Zurich / Basel, 8 March 2004 - UBS will commence another share buyback program leading to the cancellation of shares. As in previous years, the repurchase will take place over a "second trading line" on virt-x.

    On this second line, shares will be purchased exclusively by UBS. The second line will be available from 8 March 2004 to 7 March 2005. The repurchased shares must be cancelled. Cancellation will follow the approval of the 2005 Annual General Meeting. The program, aimed at institutional investors, allows tax-efficient cancellation of shares.

    UBS's Board of Directors has established a maximum buyback limit of CHF 6 billion or 5.4% of total share capital. While maintaining its strong capitalization and ratings, UBS is committed to returning to shareholders capital in excess of its business needs. As of 31 December 2003, UBS's BIS Tier 1 Ratio stood at 11.8%*.

    This second line program supersedes the share buyback program launched in March 2003. Under that program - which had a limit of CHF 5 billion - 59,482,000 shares were repurchased since 6 March 2003. The shares were purchased at an average price of CHF 75.93 for a total value of CHF 4.5 billion. Following the approval of the Annual General Meeting on 15 April 2004, these shares will be cancelled in July 2004.

    UBS

February 2004

  1. UBS reports 2003 net profit of CHF 6,385 million and fourth quarter net profit of CHF 1,859 million

    UBS reports 2003 net profit of CHF 6,385 million, up 81% from CHF 3,535 million in 2002. Results in both 2002 and 2003 were influenced by individual items that UBS terms significant financial events1. Excluding these effects, and before goodwill amortization, net profit in 2003 increased by 33% from 2002.

    "2003 turned out to be a surprisingly good year for financial markets, and a terrific year for UBS. Our businesses have made sustainable competitive gains across the globe. Put that together with tight cost control and disciplined capital management and we've delivered rapid EPS growth, combined with a high return on equity, so that now we can reward our shareholders with a record dividend," said Peter Wuffli, Chief Executive Officer.

    All businesses reported a stronger set of results in 2003 than in 2002, continuing to build market share as financial markets recovered. Private clients added net new assets of CHF 50.8 billion to their investments managed by UBS (CHF 36.2 billion in 2002). The Investment Bank also made significant competitive gains, and is firmly positioned in the industry's top bracket, ending the year as the fourth-ranked advisor for corporations globally, up from seventh place in 2002. In Switzerland, UBS kept its strong leadership in the domestic market and reported record annual profits.

    Operating income in 2003 was practically unchanged from the previous year. At the beginning of 2003, asset-based revenues were impacted by low market levels and started to recover only in the second half of the year. This was partially offset by higher revenues from fixed income trading and much lower private equity writedowns.

    At the same time, costs continued to be tightly managed. Operating expenses fell 13% from 2002. Excluding the effect of the PaineWebber brand writedown, operating expenses fell 10%, reflecting cost reductions in all categories.

    Fourth quarter results
    In fourth quarter 2003, UBS reported a net profit of CHF 1,859 million against a loss of CHF 101 million in the same period a year earlier. Excluding the effect of significant financial events in fourth quarter 2002 and before goodwill amortization, net profit increased 94%, making it the best quarterly result for more than three years. All Business Groups reported an increase in profitability compared to a year earlier. The Investment Banking & Securities unit reported an exceptionally robust result with equally strong fixed income and equities revenues and a record underwriting quarter. In addition, asset-based fees continued to benefit from rising markets. More frequent trading by individual investors drove up transaction revenues, while the private equity portfolio showed a positive quarterly result.

    The cost/income ratio was 72.8% in fourth quarter 2003. Excluding goodwill and significant financial events, the cost/income ratio fell to 70.2%, its lowest level since PaineWebber became a part of UBS.

    Credit losses stood at CHF 62 million, compared to a net recovery of CHF 11 million in fourth quarter 2002. Wealth Management & Business Banking experienced net credit losses of CHF 108 million in fourth quarter 2003, influenced by the impact of the sudden default of Erb Group, a privately held Swiss conglomerate. The Investment Bank realized net recoveries of CHF 46 million, reflecting the more positive international political and economic environment.

    Dividend of CHF 2.60 per share and new buyback program
    For the 2003 financial year, the Board of Directors will recommend a dividend of CHF 2.60 per share to the Annual General Meeting (AGM) on 15 April 2004. This is an increase of 30% from the 2002 dividend.

    UBS's ongoing share buyback programs are another important tool in achieving attractive shareholder returns. Under the 2003 buyback program, UBS had bought back a total of
    56,707,000 shares as of 31 December 2003 for a total value of CHF 4.3 billion. This program will run until 5 March 2004 and allows a maximum purchase value of CHF 5 billion in UBS shares. Subject to the approval of the AGM, all shares repurchased under this program will be canceled and cannot be reissued.

    Given the strong capitalization of UBS, the Board of Directors has decided to launch a new buyback program with a maximum buyback limit of CHF 6 billion, which is to start on 8 March 2004 and will run until 7 March 2005.

  2. UBS reports 2003 net profit of CHF 6,385 million and fourth quarter net profit of CHF 1,859 million

    UBS reports 2003 net profit of CHF 6,385 million, up 81% from CHF 3,535 million in 2002. Results in both 2002 and 2003 were influenced by individual items that UBS terms significant financial events1. Excluding these effects, and before goodwill amortization, net profit in 2003 increased by 33% from 2002.

    "2003 turned out to be a surprisingly good year for financial markets, and a terrific year for UBS. Our businesses have made sustainable competitive gains across the globe. Put that together with tight cost control and disciplined capital management and we've delivered rapid EPS growth, combined with a high return on equity, so that now we can reward our shareholders with a record dividend," said Peter Wuffli, Chief Executive Officer.

    All businesses reported a stronger set of results in 2003 than in 2002, continuing to build market share as financial markets recovered. Private clients added net new assets of CHF 50.8 billion to their investments managed by UBS (CHF 36.2 billion in 2002). The Investment Bank also made significant competitive gains, and is firmly positioned in the industry's top bracket, ending the year as the fourth-ranked advisor for corporations globally, up from seventh place in 2002. In Switzerland, UBS kept its strong leadership in the domestic market and reported record annual profits.

    Operating income in 2003 was practically unchanged from the previous year. At the beginning of 2003, asset-based revenues were impacted by low market levels and started to recover only in the second half of the year. This was partially offset by higher revenues from fixed income trading and much lower private equity writedowns.

    At the same time, costs continued to be tightly managed. Operating expenses fell 13% from 2002. Excluding the effect of the PaineWebber brand writedown, operating expenses fell 10%, reflecting cost reductions in all categories.

    Fourth quarter results
    In fourth quarter 2003, UBS reported a net profit of CHF 1,859 million against a loss of CHF 101 million in the same period a year earlier. Excluding the effect of significant financial events in fourth quarter 2002 and before goodwill amortization, net profit increased 94%, making it the best quarterly result for more than three years. All Business Groups reported an increase in profitability compared to a year earlier. The Investment Banking & Securities unit reported an exceptionally robust result with equally strong fixed income and equities revenues and a record underwriting quarter. In addition, asset-based fees continued to benefit from rising markets. More frequent trading by individual investors drove up transaction revenues, while the private equity portfolio showed a positive quarterly result.

    The cost/income ratio was 72.8% in fourth quarter 2003. Excluding goodwill and significant financial events, the cost/income ratio fell to 70.2%, its lowest level since PaineWebber became a part of UBS.

    Credit losses stood at CHF 62 million, compared to a net recovery of CHF 11 million in fourth quarter 2002. Wealth Management & Business Banking experienced net credit losses of CHF 108 million in fourth quarter 2003, influenced by the impact of the sudden default of Erb Group, a privately held Swiss conglomerate. The Investment Bank realized net recoveries of CHF 46 million, reflecting the more positive international political and economic environment.

    Dividend of CHF 2.60 per share and new buyback program
    For the 2003 financial year, the Board of Directors will recommend a dividend of CHF 2.60 per share to the Annual General Meeting (AGM) on 15 April 2004. This is an increase of 30% from the 2002 dividend.

    UBS's ongoing share buyback programs are another important tool in achieving attractive shareholder returns. Under the 2003 buyback program, UBS had bought back a total of
    56,707,000 shares as of 31 December 2003 for a total value of CHF 4.3 billion. This program will run until 5 March 2004 and allows a maximum purchase value of CHF 5 billion in UBS shares. Subject to the approval of the AGM, all shares repurchased under this program will be canceled and cannot be reissued.

    Given the strong capitalization of UBS, the Board of Directors has decided to launch a new buyback program with a maximum buyback limit of CHF 6 billion, which is to start on 8 March 2004 and will run until 7 March 2005.

November 2003

  1. UBS reports third quarter net profit of CHF 1,673 million

    UBS reports net profit of CHF 1,673 million for third quarter 2003. Excluding goodwill amortization, net profit was CHF 1,911 million, up 53% from a year earlier and 2% higher than second quarter.

    "It is our most profitable quarter in three years, with performance up in all our businesses compared to last year. We captured revenue opportunities despite volatile markets, particularly in fixed income, while the strong net new money inflow again shows our substantial competitive progress," said Peter Wuffli, Chief Executive Officer.

    In third quarter, clients brought CHF 20 billion in net new assets to UBS. In institutional asset management, UBS recorded an inflow of CHF 6.3 billion, the highest since 2000. The wealth management businesses posted total net inflows of CHF 15.1 billion; in the US, UBS reported a very strong inflow of CHF 5.7 billion, again outperforming most peers in the private client market. The European wealth management business put in another outstanding performance, reporting strong net new money of CHF 2.8 billion and a 57% year on year rise in revenues.

    Operating income was CHF 8,490 million in third quarter 2003, up 6% from the same period a year earlier, benefiting from improved fee and commission income. Corporate finance fees increased, reflecting a pick-up in corporate activity as well as a strengthening of UBS's competitive position. Asset-based and investment fund fees rose on the recovery in equity markets. Revenues in the Fixed Income, Rates and Currencies business remained very strong, despite turbulent bond markets in the summer, highlighting the broad base of this business. Compared to third quarter 2002, private equity writedowns fell significantly.

    Costs remained under tight control and were cut in almost all areas, pushing the overall pre-goodwill cost/income ratio to 72.2%, its lowest level since PaineWebber became part of UBS in 2000. Including goodwill amortization, the cost/income ratio was 75.1%. Total operating expenses fell 6% to CHF 6,353 million, with general and administrative expenses down 17%. Personal expenses fell 1%, because of lower salaries, which reflected a decrease in staff levels.

    Headcount, at 66,153 on 30 September 2003, was 4% lower than at the beginning of the year. Lean structures and careful management of resources will continue to be crucial success factors in the financial services industry, and so UBS expects to further streamline processes across the firm and reduce corresponding staff levels.

    Both the international and Swiss credit portfolios outperformed, with UBS realizing a net recovery of CHF 26 million in third quarter 2003, compared to a net credit loss expense of CHF 95 million a year ago. This positive development was largely due to a consistent level of recoveries and the small number of new impairments.

    Employee stock options - grants in 2003 and strategy for future use
    UBS recently reviewed the use of stock options in its compensation schemes and concluded that the targeted use of options as an element of the overall compensation strategy gives employees an appropriate long-term incentive to pursue sustainable share price appreciation. Consequently, UBS will continue to make use of options, but will grant them more selectively than before. From 2004 onwards, options will be used solely to match voluntary investments in UBS shares or as targeted discretionary incentives to top performers who make key contributions to the firm's success. As a result of these changes, the number and value of employee stock options awarded are likely to decrease from current levels for grants made in 2004 and thereafter.

    As part of its quarterly results discussion from now on, UBS will disclose the pro-forma expense for option awards, net of tax, which would have been incurred if recorded at fair value. In the first nine months of 2003, this expense was CHF 426 million, down from CHF 658 million for the same period a year ago, with the drop mainly attributable to lower prices for the UBS share at grant. Most employee stock options are awarded in the first half of the year, and significant grants are not expected for the remainder of this year. The final value of options awarded in 2003 will be disclosed in UBS's fourth quarter 2003 report.

  2. UBS reports third quarter net profit of CHF 1,673 million

    UBS reports net profit of CHF 1,673 million for third quarter 2003. Excluding goodwill amortization, net profit was CHF 1,911 million, up 53% from a year earlier and 2% higher than second quarter.

    "It is our most profitable quarter in three years, with performance up in all our businesses compared to last year. We captured revenue opportunities despite volatile markets, particularly in fixed income, while the strong net new money inflow again shows our substantial competitive progress," said Peter Wuffli, Chief Executive Officer.

    In third quarter, clients brought CHF 20 billion in net new assets to UBS. In institutional asset management, UBS recorded an inflow of CHF 6.3 billion, the highest since 2000. The wealth management businesses posted total net inflows of CHF 15.1 billion; in the US, UBS reported a very strong inflow of CHF 5.7 billion, again outperforming most peers in the private client market. The European wealth management business put in another outstanding performance, reporting strong net new money of CHF 2.8 billion and a 57% year on year rise in revenues.

    Operating income was CHF 8,490 million in third quarter 2003, up 6% from the same period a year earlier, benefiting from improved fee and commission income. Corporate finance fees increased, reflecting a pick-up in corporate activity as well as a strengthening of UBS's competitive position. Asset-based and investment fund fees rose on the recovery in equity markets. Revenues in the Fixed Income, Rates and Currencies business remained very strong, despite turbulent bond markets in the summer, highlighting the broad base of this business. Compared to third quarter 2002, private equity writedowns fell significantly.

    Costs remained under tight control and were cut in almost all areas, pushing the overall pre-goodwill cost/income ratio to 72.2%, its lowest level since PaineWebber became part of UBS in 2000. Including goodwill amortization, the cost/income ratio was 75.1%. Total operating expenses fell 6% to CHF 6,353 million, with general and administrative expenses down 17%. Personal expenses fell 1%, because of lower salaries, which reflected a decrease in staff levels.

    Headcount, at 66,153 on 30 September 2003, was 4% lower than at the beginning of the year. Lean structures and careful management of resources will continue to be crucial success factors in the financial services industry, and so UBS expects to further streamline processes across the firm and reduce corresponding staff levels.

    Both the international and Swiss credit portfolios outperformed, with UBS realizing a net recovery of CHF 26 million in third quarter 2003, compared to a net credit loss expense of CHF 95 million a year ago. This positive development was largely due to a consistent level of recoveries and the small number of new impairments.

    Employee stock options - grants in 2003 and strategy for future use
    UBS recently reviewed the use of stock options in its compensation schemes and concluded that the targeted use of options as an element of the overall compensation strategy gives employees an appropriate long-term incentive to pursue sustainable share price appreciation. Consequently, UBS will continue to make use of options, but will grant them more selectively than before. From 2004 onwards, options will be used solely to match voluntary investments in UBS shares or as targeted discretionary incentives to top performers who make key contributions to the firm's success. As a result of these changes, the number and value of employee stock options awarded are likely to decrease from current levels for grants made in 2004 and thereafter.

    As part of its quarterly results discussion from now on, UBS will disclose the pro-forma expense for option awards, net of tax, which would have been incurred if recorded at fair value. In the first nine months of 2003, this expense was CHF 426 million, down from CHF 658 million for the same period a year ago, with the drop mainly attributable to lower prices for the UBS share at grant. Most employee stock options are awarded in the first half of the year, and significant grants are not expected for the remainder of this year. The final value of options awarded in 2003 will be disclosed in UBS's fourth quarter 2003 report.

October 2003

September 2003

  1. UBS announces executive appointments

    UBS today announces a number of senior executive appointments and succession plans.

    On 1 January 2004, Joseph J. Grano Jr. will handover his post as Chief Executive Officer of the Wealth Management USA business to Mark B. Sutton, currently its President. Grano will leave UBS's Group Executive Board, remaining with the firm as Chairman of the business group until mid-2004.

    Clive Standish, currently Chairman and Chief Executive Officer Asia Pacific, will become UBS's Chief Financial Officer (CFO) from 1 April 2004, a move which will significantly strengthen the corporate leadership. As CFO, Standish will lead UBS's highly regarded finance, risk, treasury and strategy functions.

    With the reintroduction of the CFO role, UBS has also decided to re-establish the title of Chief Executive Officer with immediate effect. This addition to Peter Wuffli's corporate title has no effect on corporate governance.

    Peter Wuffli, Chief Executive Officer, said, "Clive and Mark are both outstanding leaders with a track record of commercial success with UBS. Their appointments demonstrate our leadership depth, and provide continuity in two critical areas: our risk and finance functions on the one hand, and our US wealth management business on the other."

    He added, "Joe hands over his Chief Executive role at the perfect time. He has led the hugely successful integration of PaineWebber into our firm, which culminated with the move to the UBS brand earlier this year. His leadership has been an inspiration not only to his staff, but throughout UBS."

    Joe Grano said, "The opportunity to work to build this great firm has been a privilege. However, it is time for me to find another mountain to climb. I am totally confident that Mark and his superb management team will continue to build on the huge momentum we have today."

    Stephan Haeringer, currently Deputy Chief Executive Officer, will be proposed for election to UBS's Board of Directors as an executive Vice-Chairman on the occasion of the Annual General Meeting on 15 April 2004.

    UBS is also pre-announcing the candidature for the Board in 2005 of Marco Suter, Chief Credit Officer, where he would succeed Alberto Togni (who reaches retirement age) as executive Vice Chairman with special focus on credit risk.

    Marcel Ospel, Chairman, said "I will be delighted to welcome the skills and proven experience of Stephan and Marco to our Board. This sort of smooth succession within our senior ranks is extremely important for the continuation of UBS's current success."

    Zurich / Basel, 17 September 2003
    UBS

August 2003

  1. UBS reports second quarter net profit of CHF 1,639 million

    UBS reports net profit of CHF 1,639 million for second quarter 2003 and CHF 2,853 million for the first half of the year. This includes an after-tax gain of CHF 2 million from the sale of the US clearing business Correspondent Services Corporation (CSC)* to Fidelity. Adjusted for the gain and before goodwill amortization, second quarter net profit was CHF 1,875 million -- up 15% from a year earlier and 29% higher than first quarter.

    "The gradual recovery of market activity and improved investor sentiment provided us with excellent opportunities -- and across our businesses, we clearly captured them," said Peter Wuffli, President of the Group Executive Board.

    Net new money results remained strong with a total net inflow of CHF 14.4 billion. Global Asset Management reported inflows of CHF 2.4 billion, mainly into high-margin asset classes. The Wealth Management businesses had total net inflows of CHF 10.4 billion. UBS attracted a record CHF 3.3 billion in new client assets from its initiative targeting European domestic markets. In the US market, it achieved net inflows of CHF 3.9 billion, outperforming its peers in the private client market.

    Revenues rose compared to first quarter in all of UBS's businesses. Individual and institutional clients transacted more as uncertainties subsided. The Investment Bank benefited from increased levels of activity in equity markets and was again able to post excellent fixed income results.

    Compared to second quarter a year ago, UBS's total operating income was up 1%, although it was down 1% if the sale of CSC1 is excluded. While markets rose this quarter, they have not recovered to the levels seen a year ago, keeping asset-based fees below those recorded then. On the positive side, income benefited from record underwriting fees, thanks to increasing demand for equity issuance, as well as a further decline in private equity writedowns.

    UBS continued to maintain its strong grip on costs. The cost/income ratio was 74.7%. Before goodwill and excluding the sale of CSC it was 73.4%, its lowest level since late 2000, reflecting particularly impressive efficiency improvements in the Swiss domestic and US wealth management businesses. Operating expenses fell 7% from second quarter 2002, with a 12% drop in general and administrative expenses, thanks to cost-cutting efforts across all businesses.

    Headcount, at 66,973 on 30 June 2003, was 4% lower than a year earlier. While UBS has been able to avoid major job cut programs during the difficult environment of the last two years, it has gradually reduced headcount, benefiting from productivity gains while tailoring capacity to the market situation.

    The international and Swiss credit portfolios remained resilient in second quarter. UBS realized an aggregate recovery of loan loss provisions of CHF 24 million this quarter, compared to a net credit loss expense of CHF 104 million in first quarter and CHF 37 million in second quarter 2002. This positive development was largely due to a high level of recoveries in the Swiss lending business, which also saw a continuing low level of new impairments. Credit loss expense in the Investment Bank, at CHF 41 million, remained almost unchanged from first quarter.

    Single brand successfully introduced
    On 9 June, UBS was adopted as the single brand for all major businesses around the world. The move was successfully executed and supported by a global advertising campaign as well as wide-ranging client and internal communication initiatives. In the US - the market most affected by the new brand strategy - these efforts significantly improved awareness for the UBS brand. Between February and June of this year, the proportion of US private clients who felt familiar with UBS as a firm went from less than half to 85%. Moreover, their opinion of UBS has risen significantly and is now highly favourable.

  2. UBS reports second quarter net profit of CHF 1,639 million

    UBS reports net profit of CHF 1,639 million for second quarter 2003 and CHF 2,853 million for the first half of the year. This includes an after-tax gain of CHF 2 million from the sale of the US clearing business Correspondent Services Corporation (CSC)* to Fidelity. Adjusted for the gain and before goodwill amortization, second quarter net profit was CHF 1,875 million -- up 15% from a year earlier and 29% higher than first quarter.

    "The gradual recovery of market activity and improved investor sentiment provided us with excellent opportunities -- and across our businesses, we clearly captured them," said Peter Wuffli, President of the Group Executive Board.

    Net new money results remained strong with a total net inflow of CHF 14.4 billion. Global Asset Management reported inflows of CHF 2.4 billion, mainly into high-margin asset classes. The Wealth Management businesses had total net inflows of CHF 10.4 billion. UBS attracted a record CHF 3.3 billion in new client assets from its initiative targeting European domestic markets. In the US market, it achieved net inflows of CHF 3.9 billion, outperforming its peers in the private client market.

    Revenues rose compared to first quarter in all of UBS's businesses. Individual and institutional clients transacted more as uncertainties subsided. The Investment Bank benefited from increased levels of activity in equity markets and was again able to post excellent fixed income results.

    Compared to second quarter a year ago, UBS's total operating income was up 1%, although it was down 1% if the sale of CSC1 is excluded. While markets rose this quarter, they have not recovered to the levels seen a year ago, keeping asset-based fees below those recorded then. On the positive side, income benefited from record underwriting fees, thanks to increasing demand for equity issuance, as well as a further decline in private equity writedowns.

    UBS continued to maintain its strong grip on costs. The cost/income ratio was 74.7%. Before goodwill and excluding the sale of CSC it was 73.4%, its lowest level since late 2000, reflecting particularly impressive efficiency improvements in the Swiss domestic and US wealth management businesses. Operating expenses fell 7% from second quarter 2002, with a 12% drop in general and administrative expenses, thanks to cost-cutting efforts across all businesses.

    Headcount, at 66,973 on 30 June 2003, was 4% lower than a year earlier. While UBS has been able to avoid major job cut programs during the difficult environment of the last two years, it has gradually reduced headcount, benefiting from productivity gains while tailoring capacity to the market situation.

    The international and Swiss credit portfolios remained resilient in second quarter. UBS realized an aggregate recovery of loan loss provisions of CHF 24 million this quarter, compared to a net credit loss expense of CHF 104 million in first quarter and CHF 37 million in second quarter 2002. This positive development was largely due to a high level of recoveries in the Swiss lending business, which also saw a continuing low level of new impairments. Credit loss expense in the Investment Bank, at CHF 41 million, remained almost unchanged from first quarter.

    Single brand successfully introduced
    On 9 June, UBS was adopted as the single brand for all major businesses around the world. The move was successfully executed and supported by a global advertising campaign as well as wide-ranging client and internal communication initiatives. In the US - the market most affected by the new brand strategy - these efforts significantly improved awareness for the UBS brand. Between February and June of this year, the proportion of US private clients who felt familiar with UBS as a firm went from less than half to 85%. Moreover, their opinion of UBS has risen significantly and is now highly favourable.

May 2003

  1. UBS reports first quarter net profit of CHF 1,214 million

    UBS reports net profit of CHF 1,214 million, a decline of 11% from the first quarter a year earlier. Before goodwill and excluding the gain from the sale of Hyposwiss in first quarter 2002*, net profit was 7% lower. This decrease is almost entirely attributable to currency moves - mainly the US dollar's 20% weakening against the Swiss franc between the two periods.

    Compared to fourth quarter 2002 and before goodwill, net profit rose 35% after excluding the writedown related to the withdrawal of the PaineWebber brand** and the gain from the sale of Klinik Hirslanden***.

    "UBS has again delivered robust results in a tough environment. We focused on protecting and enhancing returns for our shareholders. We pushed down our cost/income ratio to its lowest level since the middle of 2001, and delivered a higher return on equity than this time last year," said Peter Wuffli, President of the Group Executive Board.

    About half of the change in both income and expense compared to the same quarter a year earlier was driven by currency movements.

    Operating income declined 19% compared to a year earlier. Adjusted for the gain from the sale of Hyposwiss1, income was 18% lower. Apart from the currency effects, the decrease was mainly due to poor equities trading conditions and low equity market levels, affecting asset-based revenues. Encouragingly, private equity writedowns at UBS Capital returned to more moderate levels, decreasing to CHF 123 million in first quarter 2003 from CHF 383 million in the same quarter a year earlier. Fixed income trading revenues were very strong, reflecting a buoyant trading environment that benefited from low interest rates and a steep yield curve.

    Credit businesses again proved resilient, despite another quarter of generally weak economic conditions. Actual net credit loss expense during the quarter amounted to CHF 104 million compared to CHF 85 million in the same quarter in 2002.

    Costs remained under tight control. Operating expenses fell 20% from the same quarter a year earlier, to their lowest level since the merger with PaineWebber. Besides currency effects, the decrease reflects sharp declines in personnel and in general and administrative expenses, down 21% and 18% respectively. Performance-related compensation also fell.

    Headcount declined a further 666 to 68,395 in the three months since 31 December 2002 as processes and structures were streamlined. At the same time, capabilities were selectively expanded in areas with growth potential.

    Net new money in UBS's wealth management businesses (Private Banking and UBS PaineWebber) for the quarter was CHF 11.1 billion - a strong result that shows the continued confidence clients place in UBS's financial advice, its stability and strength. In the European wealth management business, net inflows reached a record of CHF 3.0 billion. Inflows were positive across all private banking markets. In the US, UBS PaineWebber reported net new money of CHF 3.7 billion, comparing favorably to industry experience.

  2. UBS reports first quarter net profit of CHF 1,214 million

    UBS reports net profit of CHF 1,214 million, a decline of 11% from the first quarter a year earlier. Before goodwill and excluding the gain from the sale of Hyposwiss in first quarter 2002*, net profit was 7% lower. This decrease is almost entirely attributable to currency moves - mainly the US dollar's 20% weakening against the Swiss franc between the two periods.

    Compared to fourth quarter 2002 and before goodwill, net profit rose 35% after excluding the writedown related to the withdrawal of the PaineWebber brand** and the gain from the sale of Klinik Hirslanden***.

    "UBS has again delivered robust results in a tough environment. We focused on protecting and enhancing returns for our shareholders. We pushed down our cost/income ratio to its lowest level since the middle of 2001, and delivered a higher return on equity than this time last year," said Peter Wuffli, President of the Group Executive Board.

    About half of the change in both income and expense compared to the same quarter a year earlier was driven by currency movements.

    Operating income declined 19% compared to a year earlier. Adjusted for the gain from the sale of Hyposwiss1, income was 18% lower. Apart from the currency effects, the decrease was mainly due to poor equities trading conditions and low equity market levels, affecting asset-based revenues. Encouragingly, private equity writedowns at UBS Capital returned to more moderate levels, decreasing to CHF 123 million in first quarter 2003 from CHF 383 million in the same quarter a year earlier. Fixed income trading revenues were very strong, reflecting a buoyant trading environment that benefited from low interest rates and a steep yield curve.

    Credit businesses again proved resilient, despite another quarter of generally weak economic conditions. Actual net credit loss expense during the quarter amounted to CHF 104 million compared to CHF 85 million in the same quarter in 2002.

    Costs remained under tight control. Operating expenses fell 20% from the same quarter a year earlier, to their lowest level since the merger with PaineWebber. Besides currency effects, the decrease reflects sharp declines in personnel and in general and administrative expenses, down 21% and 18% respectively. Performance-related compensation also fell.

    Headcount declined a further 666 to 68,395 in the three months since 31 December 2002 as processes and structures were streamlined. At the same time, capabilities were selectively expanded in areas with growth potential.

    Net new money in UBS's wealth management businesses (Private Banking and UBS PaineWebber) for the quarter was CHF 11.1 billion - a strong result that shows the continued confidence clients place in UBS's financial advice, its stability and strength. In the European wealth management business, net inflows reached a record of CHF 3.0 billion. Inflows were positive across all private banking markets. In the US, UBS PaineWebber reported net new money of CHF 3.7 billion, comparing favorably to industry experience.

April 2003

  1. Annual General Meeting of UBS

    At the Annual General Meeting of 16 April, the shareholders of UBS approved the annual report and consolidated accounts for 2002 and granted discharge to the members of the Board of Directors and the Group Executive Board. The meeting also approved the dividend of CHF 2 per share recommended by the Board of Directors.

    Lower minimum shareholding for placing items on the agenda
    The AGM approved the proposal of the Board of Directors to lower the minimum shareholding entitling shareholders to place items on the AGM agenda. Previously, shareholders wishing to table an item on the agenda were required to represent - individually or jointly - an aggregate par value of at least CHF 1 million in UBS shares. As a consequence of the par value repayments UBS has made over the past few years, the number of shares required to meet this threshold had risen substantially. The par value specified has now been lowered to CHF 250,000, reducing the number of shares required to 312,500.

    Board of Directors: reduction of the term of office and re-election
    The AGM also approved the proposed reduction of the term of office for members of the Board of Directors from four to three years. This is in line with the latest corporate governance standards and will increase flexibility.

    Peter Böckli, Johannes A. de Gier and Rolf A. Meyer were re-elected by the AGM as members of the Board of Directors for a further term of three years.

    Share cancellation
    Via its second trading line on the Swiss Stock Exchange (SWX), UBS bought back a total of 75,970,080 of its own shares worth CHF 5.5 billion in the course of two repurchase programmes during the past year. The AGM approved cancellation of these shares and the corresponding 6% reduction in share capital.

    The AGM also approved a new repurchase programme for a maximum amount of CHF 5 billion. These shares will likewise be repurchased via a second trading line on the Swiss Stock Exchange (SWX) and are scheduled to be cancelled. The amendment to the articles of association required for the related capital reduction will be submitted to the 2004 AGM.

    Focus on Switzerland's pension system
    In his address Marcel Ospel, Chairman of the Board of Directors, focused on the subject of retirement provision. The Swiss 'three pillar' system is sustainable in the face of various demographic and market stresses, he said, thanks to its reliance on three different financing structures. This results in a natural diversification of risk. In view of the foreseeable demographic problems, he also put forward the case for a 'fourth pillar', namely a job market for people past the statutory retirement age who are still willing and able to work. Touching on the current debate about the challenges faced by the 'second pillar', Marcel Ospel emphasised the need for increased professionalism and transparency in the management of funds allocated to this form of retirement provision. Opening up the system to additional competition and a broader range of plan providers would improve service quality. Furthermore, plan participants should be allowed to choose their own risk profile, which would make the current, impractical system of minimum interest rates obsolete in the medium term.

    A long-term horizon was vital when investing funds, as was solidarity between the generations, Marcel Ospel said, to avoid the destructive effects of short-term reactions to market cycles, when shares are bought high in bull markets and sold low in bear markets as investors switch into low-yielding bonds. Moving beyond the topic of retirement provision, he appealed to economic and political leaders to pursue more constructive cooperation efforts with a view to solving the urgent problems facing society today.

    Exploiting opportunities during the downturn
    UBS would make the most of opportunities to strengthen its competitive position during the current downturn, Peter Wuffli, President of the Group Executive Board, said in his address to the AGM. From its current platform, the Group's growth would be primarily organic, he said. Examples of successful organic growth, Peter Wuffli continued, can be seen in both UBS's European Wealth Management initiative and the building of its investment banking business in the US market. As a further significant opportunity for UBS in the current adverse environment, Peter Wuffli cited UBS's attractive corporate culture.

February 2003

  1. UBS reports 2002 net profit of CHF 3,535 million and fourth quarter net loss of CHF 101 million (including non-cash brand writedown of CHF 953 million after tax)

    UBS reports 2002 net profit of CHF 3,535 million, a decline of 29% compared to CHF 4,973 million a year earlier. The decrease in net profit reflects an aftertax writedown of CHF 953 million related to the withdrawal of the PaineWebber brand. Recorded as an intangible asset in the UBS balance sheet, the brand was written down in fourth quarter 2002 following the decision to adopt the single UBS brand from June 2003 onwards. Pre-goodwill amortization, adjusted for the writedown and deducting gains from divestments, net profit in 2002 fell to CHF 5,529 million, down 12% from 2001.

    "In one of the most challenging years ever for the financial industry, our businesses were remarkably resilient and competitive, gaining market share by continuing to invest in growth," said Peter Wuffli, President of the Group Executive Board.

    Operating income in 2002 declined 8% from a year earlier. Adjusted for significant financial events *, the decline was 9%, reflecting investors' lack of appetite for markets, less buoyant trading conditions, disappointing ongoing losses in the private equity business and lower asset levels, impacting recurring fees. Invested assets, at CHF 2,037 billion on 31 December 2002, were down 17% from CHF 2,448 billion a year earlier due to currency and market movements.

    Throughout 2002, both compensation and non-personnel expenses were kept in line with market and revenue developments. Total operating expenses were down 3% year-on-year. Excluding the brand writedown, they decreased 7% to reach their lowest level since PaineWebber joined UBS. Average variable compensation per head in 2002 was 8% lower than in 2001.

    UBS did not build up significant overcapacity during the peak of the last business cycle, and has therefore been able to reduce headcount gradually as economic conditions weakened - without making drastic cuts. Over 2002, headcount decreased by 924 to 69,061, the lowest level since PaineWebber joined UBS.

    "We streamlined processes and structures in specific areas. At the same time, however, we have expanded our capabilities where we see positive growth potential," said Peter Wuffli.

November 2002

  1. UBS reports third quarter net profit of CHF 942 million

    UBS achieved third quarter 2002 net profit after tax of CHF 942 million, up 4% from the third quarter a year earlier but 29% lower than in the second quarter of 2002. Pre-goodwill, net profit was CHF 1,247 million, 2% more than third quarter 2001, but down 24% from second quarter 2002.

    The decline in net profit compared to the previous quarter reflects the effects of corrections in global equity markets feeding through to asset-based fees along with the depressed levels of corporate and investor activity. Private equity results were again negatively impacted by valuation losses.

    "We have demonstrated our ability to manage costs according to prevailing market conditions, with all our businesses continuing to show the elasticity of their cost bases," said Peter Wuffli, President of the Group Executive Board.
    Total operating income, at CHF 8,000 million, fell 8% from third quarter a year earlier and was 11% lower than in the second quarter of this year. In UBS Warburg, the Equities business posted a very strong result, with operating income in third quarter up 39% from third quarter a year earlier, compensating for a less attractive foreign exchange trading environment. July 2002 was a record month for equity client commissions. Although asset-based revenues this quarter were negatively affected by falling equity markets, the Group's private client businesses reported steady margins.

    Both costs and headcount at UBS are at the lowest point since the merger with PaineWebber in 2000. As UBS did not build up overcapacity during the peak of the last business cycle, it has been able to reduce headcount gradually as economic conditions weakened without having to make drastic cuts.

    Lower performance-related compensation helped to reduce personnel expenses considerably to CHF 4,411 million, down 9% from third quarter a year earlier and 8% lower than in the second quarter of this year. Cost savings in practically all areas meant lower general and administrative expenses, which were 7% below third quarter 2001 levels and down 5% from the second quarter of this year.

    The performance of UBS's credit portfolio remains resilient in view of the weakening international credit climate. Credit loss expense in third quarter was CHF 95 million, down from the CHF 171 million reported in third quarter a year earlier. The credit loss expense remains unusually low at around half of the statistically expected average over-the-cycle loss rate. This outperformance is unlikely to continue through 2003 as the global credit environment is expected to remain difficult. Levels of impaired loans fell to CHF 11.6 billion, down 7.6% from the second quarter.

    The level of invested assets for the Group declined by 6% to CHF 2,070 billion because of falling equity markets. Net new money in the private clients businesses was CHF 12.7 billion in third quarter 2002, once again demonstrating the asset gathering strength of the wealth management franchise. In the US, UBS PaineWebber continued to attract new money with a net inflow of CHF 3.4 billion, up from CHF 1.4 billion in second quarter. In the two years since becoming part of UBS, PaineWebber has gained market share from its competitors, increasing its share of the US private client market to 13.7% in third quarter 2002 from 11.7% in second quarter 2000.

    The private banking unit showed very strong net inflows of CHF 9.3 billion due to record investments from international clients of CHF 9.8 billion. After the European wealth management initiative demonstrated its defensive qualities during Italy's tax amnesty, this quarter it displayed its growth potential, achieving a record net new money inflow of CHF 2.5 billion, or an annualized growth rate of almost 40%.
    In investment banking, UBS Warburg's market share gains reflect continued success in building its competitive position. In particular, its 3.9% share of the US market is its highest to date, confirming that the investment in top banking talent in the US is yielding results.

August 2002

  1. UBS reports second quarter net profit of CHF 1,331 million

    UBS achieved second quarter 2002 net profit after tax of CHF 1,331 million, down 4% from the second quarter a year earlier and 2% lower than in the first quarter of 2002. Pre-goodwill, profit was CHF 1,633 million, 5% less than the second quarter 2001, but up 4% from first quarter 2002 (adjusted for the disposal of Hyposwiss) -- the third consecutive quarterly increase.

    During the quarter, extensive uncertainty about global economic prospects continued to challenge the financial industry. In particular, investor confidence was undermined by a succession of negative events, leading to considerable corrections in equity markets.

    "Against this difficult background, profitability in our key businesses has proved resilient. We have been able to limit negative credit experience and offset the pressure on revenues with strict cost management," said Peter Wuffli, President of the Group Executive Board.

    Revenues from the private client businesses held up particularly well. Nevertheless, total operating income, at CHF 9,008 million, fell 9% from a year earlier and was 6% lower than in the first quarter of this year, reflecting generally subdued levels of corporate activity and depressed investor sentiment as well as further writedowns on UBS Capital's private equity investments. UBS Capital continued to record disappointing losses through deteriorating valuations and a shortage of viable exit opportunities.

    Cost discipline in all UBS businesses helped keep expenses down. Total operating expenses in second quarter dropped 9% from the same period in 2001 and personnel expenses fell 10% compared to both second quarter 2001 and first quarter 2002.

    UBS's cautious attitude towards risk has helped it avoid exposure from the worst of the financial market's recent defaults. Credit losses declined to CHF 37 million in the second quarter compared to CHF 76 million for the same period in 2001, despite a generally deteriorating credit environment. Levels of impaired loans fell to CHF 12.6 billion, down 9% from the first quarter.

    The current environment highlights the importance of a solid and stable financial structure. UBS's capital base and cash generation remain strong, with a BIS Tier 1 ratio of 11.8% among the highest in the industry. This financial strength allowed continued share repurchases (CHF 2.3 billion in the second quarter), supporting the level of earnings per share.

    Net new money in the private clients businesses was CHF 4.9 billion in second quarter 2002. Private Banking showed a strong net inflow of CHF 3.5 billion despite a CHF 3.8 billion net outflow due to the Italian tax amnesty. As in the first quarter, UBS managed to retain almost half of the flowback to Italy within its domestic private banking operations. In an extremely difficult environment in the US private client market, UBS PaineWebber continued to attract new money with a net inflow of CHF 1.4 billion.

    UBS's two major strategic initiatives continue to enjoy success. The European wealth management initiative, experiencing its highest revenues since its inception, continues to expand its franchise. UBS Warburg further improved its share of the US investment banking market to 3.7% from 3.4% a year ago.

  2. UBS reports second quarter net profit of CHF 1,331 million

    UBS achieved second quarter 2002 net profit after tax of CHF 1,331 million, down 4% from the second quarter a year earlier and 2% lower than in the first quarter of 2002. Pre-goodwill, profit was CHF 1,633 million, 5% less than the second quarter 2001, but up 4% from first quarter 2002 (adjusted for the disposal of Hyposwiss) -- the third consecutive quarterly increase.

    During the quarter, extensive uncertainty about global economic prospects continued to challenge the financial industry. In particular, investor confidence was undermined by a succession of negative events, leading to considerable corrections in equity markets.

    "Against this difficult background, profitability in our key businesses has proved resilient. We have been able to limit negative credit experience and offset the pressure on revenues with strict cost management," said Peter Wuffli, President of the Group Executive Board.

    Revenues from the private client businesses held up particularly well. Nevertheless, total operating income, at CHF 9,008 million, fell 9% from a year earlier and was 6% lower than in the first quarter of this year, reflecting generally subdued levels of corporate activity and depressed investor sentiment as well as further writedowns on UBS Capital's private equity investments. UBS Capital continued to record disappointing losses through deteriorating valuations and a shortage of viable exit opportunities.

    Cost discipline in all UBS businesses helped keep expenses down. Total operating expenses in second quarter dropped 9% from the same period in 2001 and personnel expenses fell 10% compared to both second quarter 2001 and first quarter 2002.

    UBS's cautious attitude towards risk has helped it avoid exposure from the worst of the financial market's recent defaults. Credit losses declined to CHF 37 million in the second quarter compared to CHF 76 million for the same period in 2001, despite a generally deteriorating credit environment. Levels of impaired loans fell to CHF 12.6 billion, down 9% from the first quarter.

    The current environment highlights the importance of a solid and stable financial structure. UBS's capital base and cash generation remain strong, with a BIS Tier 1 ratio of 11.8% among the highest in the industry. This financial strength allowed continued share repurchases (CHF 2.3 billion in the second quarter), supporting the level of earnings per share.

    Net new money in the private clients businesses was CHF 4.9 billion in second quarter 2002. Private Banking showed a strong net inflow of CHF 3.5 billion despite a CHF 3.8 billion net outflow due to the Italian tax amnesty. As in the first quarter, UBS managed to retain almost half of the flowback to Italy within its domestic private banking operations. In an extremely difficult environment in the US private client market, UBS PaineWebber continued to attract new money with a net inflow of CHF 1.4 billion.

    UBS's two major strategic initiatives continue to enjoy success. The European wealth management initiative, experiencing its highest revenues since its inception, continues to expand its franchise. UBS Warburg further improved its share of the US investment banking market to 3.7% from 3.4% a year ago.

May 2002

  1. UBS reports first quarter net profit of CHF 1,363 million

    UBS achieved first quarter 2002 net profit after tax of CHF 1,363 million, 14% less than the same quarter a year earlier but 23% higher than fourth quarter 2001. Pre-goodwill, and adjusted for gains from the sale of Hyposwiss, profit was CHF 1,574 million, 17% less than the same quarter a year earlier but 10% higher than the fourth quarter 2001. Overall profitability grew for the second consecutive quarter, with every business unit (except UBS Capital) recording quarter-on-quarter growth. The highly successful Swiss domestic banking business again posted record pre-tax profits.

    "The market environment remains difficult, but the progress of all our businesses is very encouraging. We continue to see the benefits of our disciplined cost and risk management, our strategic focus and our diverse business mix," said President Peter Wuffli.

    Wealth management results proved resilient despite the uncertain sentiment, and UBS Warburg's core Corporate & Institutional Clients unit performed very well - driven by record fixed income results. A large proportion of the Group's drop in profits compared to first quarter 2001 was recorded by UBS Capital, which continues to post disappointing results as wider economic difficulties depress private equity valuations.

    Operating income in first quarter 2002 was CHF 9,589 million, down 5% compared to first quarter 2001, but up 13% compared to fourth quarter 2001. Wealth management businesses provided stable growth, with revenue increasing quarter-on-quarter, thanks in particular to growth in asset-based fees. These recurring fees rose both in Private Banking and in UBS PaineWebber, to record levels in the latter. Investment fund fees also hit an all-time high.

    General and administrative expenses dropped 9% compared to first quarter 2001 to CHF 1,700 million, their lowest level since the merger with PaineWebber, reflecting deep cuts in marketing, travel and entertainment and technology spending. Personnel expenses rose 1% to CHF 5,317 million on higher performance-related compensation. These costs are managed on a full-year cycle with the fixing of annual performance-related compensation made in the fourth quarter. Headcount discipline continues to make capacity cuts unnecessary and leave scope for strategic investments.

    Credit loss expense was CHF 85 million in first quarter 2002 or 3 basis points of the loan book for the quarter, compared to CHF 115 million in fourth quarter 2001 and CHF 136 million in the same period a year earlier. The Group benefited from the improved quality of the Swiss domestic portfolio while UBS Warburg continues to manage risk cautiously and to make effective use of credit protection.

    Clients invested CHF 11.8 billion in net new money in first quarter 2002, a satisfactory result given the current market environment and the short term impact of the Italian tax amnesty, which reduced net flows in Private Banking in this quarter by CHF 4.5 billion. The strategic build-up of domestic private banking activities in Italy helped UBS retain nearly half of the CHF 8.4 billion in repatriated assets. UBS PaineWebber, the Group's US private client business, continued to gain market share from its US private client peers and generate strong net new money, capturing CHF 7.4 billion in net new money this quarter. UBS's investment funds continued to attract net inflows.

  2. UBS reports first quarter net profit of CHF 1,363 million

    UBS achieved first quarter 2002 net profit after tax of CHF 1,363 million, 14% less than the same quarter a year earlier but 23% higher than fourth quarter 2001. Pre-goodwill, and adjusted for gains from the sale of Hyposwiss, profit was CHF 1,574 million, 17% less than the same quarter a year earlier but 10% higher than the fourth quarter 2001. Overall profitability grew for the second consecutive quarter, with every business unit (except UBS Capital) recording quarter-on-quarter growth. The highly successful Swiss domestic banking business again posted record pre-tax profits.

    "The market environment remains difficult, but the progress of all our businesses is very encouraging. We continue to see the benefits of our disciplined cost and risk management, our strategic focus and our diverse business mix," said President Peter Wuffli.

    Wealth management results proved resilient despite the uncertain sentiment, and UBS Warburg's core Corporate & Institutional Clients unit performed very well - driven by record fixed income results. A large proportion of the Group's drop in profits compared to first quarter 2001 was recorded by UBS Capital, which continues to post disappointing results as wider economic difficulties depress private equity valuations.

    Operating income in first quarter 2002 was CHF 9,589 million, down 5% compared to first quarter 2001, but up 13% compared to fourth quarter 2001. Wealth management businesses provided stable growth, with revenue increasing quarter-on-quarter, thanks in particular to growth in asset-based fees. These recurring fees rose both in Private Banking and in UBS PaineWebber, to record levels in the latter. Investment fund fees also hit an all-time high.

    General and administrative expenses dropped 9% compared to first quarter 2001 to CHF 1,700 million, their lowest level since the merger with PaineWebber, reflecting deep cuts in marketing, travel and entertainment and technology spending. Personnel expenses rose 1% to CHF 5,317 million on higher performance-related compensation. These costs are managed on a full-year cycle with the fixing of annual performance-related compensation made in the fourth quarter. Headcount discipline continues to make capacity cuts unnecessary and leave scope for strategic investments.

    Credit loss expense was CHF 85 million in first quarter 2002 or 3 basis points of the loan book for the quarter, compared to CHF 115 million in fourth quarter 2001 and CHF 136 million in the same period a year earlier. The Group benefited from the improved quality of the Swiss domestic portfolio while UBS Warburg continues to manage risk cautiously and to make effective use of credit protection.

    Clients invested CHF 11.8 billion in net new money in first quarter 2002, a satisfactory result given the current market environment and the short term impact of the Italian tax amnesty, which reduced net flows in Private Banking in this quarter by CHF 4.5 billion. The strategic build-up of domestic private banking activities in Italy helped UBS retain nearly half of the CHF 8.4 billion in repatriated assets. UBS PaineWebber, the Group's US private client business, continued to gain market share from its US private client peers and generate strong net new money, capturing CHF 7.4 billion in net new money this quarter. UBS's investment funds continued to attract net inflows.

April 2002

  1. Annual General Meeting of UBS

February 2002

  1. UBS reports full-year net profit of CHF 4,973 million, and fourth quarter net profit of CHF 1,106 million

    UBS posted 2001 net profit after tax of CHF 4,973 million, 36% less than the previous year. Pre-goodwill, net profit was CHF 6,296 million, 28% lower than during the considerably stronger markets of 2000 (adjusted for significant financial events1 in 2000). Private equity investment losses and the costs of funding the PaineWebber merger contributed significantly to the drop in profits, while core operating businesses proved resilient. Overall, UBS made significant progress in 2001, succesfully integrating UBS PaineWebber, building up its European wealth management business, and expanding its investment banking presence, particularly in the U.S.
    "Despite the tough market environment, our key businesses have held up well. We are clearly seeing the benefits of our strict cost discipline and strategic focus, and we expect to continue gaining market share in the coming year," said President Peter Wuffli.
    Operating income in 2001 was CHF 37,114 million, up 2% from a year earlier, as the addition of UBS PaineWebber's business compensated for the difficult market conditions. Operating expenses were tightly controlled, with significantly lower performance-related compensation rates. Average variable compensation per head in 2001 was 23% lower than in 2000.
    Total credit loss expenses were CHF 498 million for the year, compared to a net recovery of CHF 130 million in 2000. In Switzerland, recoveries of provisions have declined, in comparison to the exceptional level of 2000. Outside Switzerland, UBS Warburg benefited from its prudent approach to risk as the global credit environment declined .
    Clients contributed CHF 102 billion in net new money in 2001. Private Banking attracted CHF 22.5 billion of inflows, an eight-fold increase over 2000. UBS Switzerland's Private & Corporate Clients unit saw CHF 8.5 billion in inflows. The Private Clients business centered on UBS PaineWebber received CHF 36.0 billion, continuing its excellent record, while UBS Asset Management posted a net new money inflow of CHF 34.9 billion. Total invested assets at the end of the year were CHF 2,457 billion, almost unchanged from a year earlier.

    Fourth quarter results
    Net profit after tax in the fourth quarter was CHF 1,106 million, 22% higher than in third quarter 2001 and 24% lower than in fourth quarter last year. Pre-goodwill, profit was CHF 1,436 million, 17% higher than the third quarter. The improvement against the third quarter was driven by a record contribution from UBS Switzerland's Private & Corporate Clients unit, reduced credit losses, tight control of personnel expenses and a lower tax rate. Compared to the fourth quarter a year earlier and adjusted for significant financial events , pre-goodwill net profit was down 24%, reflecting the effects of weaker markets and another difficult quarter for private equity valuations.
    Operating income fell 9% from the fourth quarter of 2000 (down 3% from third quarter 2001). Once again, the private client businesses provided a stable base, and net fee and commission income rose 4% quarter-on-quarter, now comprising 58% of total revenue. Performance-related compensation for the year has been significantly reduced in the light of market conditions and UBS's financial performance, leading to personnel expenses this quarter falling 9% from the third quarter. Overall, costs are at their lowest level since the PaineWebber merger.
    Credit loss expenses of CHF 115 million in fourth quarter 2001 compare to CHF 171 million in the third quarter and CHF 95 million a year earlier. UBS had no material, unhedged exposure to any of the widely publicized international corporate default cases of the last few months.
    Group net new money inflows for the quarter were CHF 21.7 billion, with inflows in the private client business units of CHF 12.6 billion.

  2. UBS reports full-year net profit of CHF 4,973 million, and fourth quarter net profit of CHF 1,106 million

    UBS posted 2001 net profit after tax of CHF 4,973 million, 36% less than the previous year. Pre-goodwill, net profit was CHF 6,296 million, 28% lower than during the considerably stronger markets of 2000 (adjusted for significant financial events1 in 2000). Private equity investment losses and the costs of funding the PaineWebber merger contributed significantly to the drop in profits, while core operating businesses proved resilient. Overall, UBS made significant progress in 2001, succesfully integrating UBS PaineWebber, building up its European wealth management business, and expanding its investment banking presence, particularly in the U.S.
    "Despite the tough market environment, our key businesses have held up well. We are clearly seeing the benefits of our strict cost discipline and strategic focus, and we expect to continue gaining market share in the coming year," said President Peter Wuffli.
    Operating income in 2001 was CHF 37,114 million, up 2% from a year earlier, as the addition of UBS PaineWebber's business compensated for the difficult market conditions. Operating expenses were tightly controlled, with significantly lower performance-related compensation rates. Average variable compensation per head in 2001 was 23% lower than in 2000.
    Total credit loss expenses were CHF 498 million for the year, compared to a net recovery of CHF 130 million in 2000. In Switzerland, recoveries of provisions have declined, in comparison to the exceptional level of 2000. Outside Switzerland, UBS Warburg benefited from its prudent approach to risk as the global credit environment declined .
    Clients contributed CHF 102 billion in net new money in 2001. Private Banking attracted CHF 22.5 billion of inflows, an eight-fold increase over 2000. UBS Switzerland's Private & Corporate Clients unit saw CHF 8.5 billion in inflows. The Private Clients business centered on UBS PaineWebber received CHF 36.0 billion, continuing its excellent record, while UBS Asset Management posted a net new money inflow of CHF 34.9 billion. Total invested assets at the end of the year were CHF 2,457 billion, almost unchanged from a year earlier.

    Fourth quarter results
    Net profit after tax in the fourth quarter was CHF 1,106 million, 22% higher than in third quarter 2001 and 24% lower than in fourth quarter last year. Pre-goodwill, profit was CHF 1,436 million, 17% higher than the third quarter. The improvement against the third quarter was driven by a record contribution from UBS Switzerland's Private & Corporate Clients unit, reduced credit losses, tight control of personnel expenses and a lower tax rate. Compared to the fourth quarter a year earlier and adjusted for significant financial events , pre-goodwill net profit was down 24%, reflecting the effects of weaker markets and another difficult quarter for private equity valuations.
    Operating income fell 9% from the fourth quarter of 2000 (down 3% from third quarter 2001). Once again, the private client businesses provided a stable base, and net fee and commission income rose 4% quarter-on-quarter, now comprising 58% of total revenue. Performance-related compensation for the year has been significantly reduced in the light of market conditions and UBS's financial performance, leading to personnel expenses this quarter falling 9% from the third quarter. Overall, costs are at their lowest level since the PaineWebber merger.
    Credit loss expenses of CHF 115 million in fourth quarter 2001 compare to CHF 171 million in the third quarter and CHF 95 million a year earlier. UBS had no material, unhedged exposure to any of the widely publicized international corporate default cases of the last few months.
    Group net new money inflows for the quarter were CHF 21.7 billion, with inflows in the private client business units of CHF 12.6 billion.

November 2001

  1. UBS reports third quarter net profit of CHF 903 million

    Zurich/Basel, 13 November 2001 - In third quarter 2001, UBS achieved a net profit after tax of CHF 903 million (down 35% from the second quarter and 56% lower year-on-year). Pre-goodwill, profit was CHF 1,227 million, 29% lower than last quarter and 44% less than the same period a year earlier. Business conditions were challenging as economies and securities markets worldwide deteriorated. In addition, the same period last year benefited from significant credit loss recoveries that are unlikely to be repeated. Conditions for equity trading, which was so successful in 2000, were particularly poor.

    "Against the background of a difficult general environment, our client business remained solid, and our strong market share growth means we're well positioned for improving economic conditions," said Luqman Arnold, President of the Group Executive Board.

    Group net new money inflows for the quarter were CHF 34.9 billion, with positive inflows in all businesses, bringing the total inflow for the year-to-date to CHF 80.3 billion. Inflows in the private clients business units totalled CHF 18.0 billion in the quarter. Total invested assets at the end of the quarter were CHF 2.28 trillion, a decline of 11% over the quarter, due to sharp declines in markets worldwide and the 10% reversal in the USD/CHF exchange rate.

    Costs, which fell 8% from the second quarter, were at their lowest level this year thanks to a clear focus on expense management, and lower performance-related compensation. Reduced information technology spending prompted a 6% quarter-on-quarter decline in general and administrative expenses.

    Revenues for all key operating businesses held up well with a diverse business mix and a core of asset-based fees proving invaluable. Operating income in the third quarter rose 2% from a year earlier to CHF 8,704 million, as the disruption in transaction revenues and poor equity trading conditions were offset by the inclusion of UBS PaineWebber.

    Impact of terrorist attacks in the U.S.
    UBS was profoundly shocked and saddened by the terrorist attacks in the U.S. on 11 September 2001 and by the scale of the personal tragedy involved.

    "Business considerations appear secondary within the context of recent events and we honor the memory of our employees who lost their lives," Luqman Arnold said, adding, "As a firm, UBS was fortunate not to suffer direct damage to property and could therefore offer support and facilities to others in need."

  2. UBS reports third quarter net profit of CHF 903 million

    Zurich/Basel, 13 November 2001 - In third quarter 2001, UBS achieved a net profit after tax of CHF 903 million (down 35% from the second quarter and 56% lower year-on-year). Pre-goodwill, profit was CHF 1,227 million, 29% lower than last quarter and 44% less than the same period a year earlier. Business conditions were challenging as economies and securities markets worldwide deteriorated. In addition, the same period last year benefited from significant credit loss recoveries that are unlikely to be repeated. Conditions for equity trading, which was so successful in 2000, were particularly poor.

    "Against the background of a difficult general environment, our client business remained solid, and our strong market share growth means we're well positioned for improving economic conditions," said Luqman Arnold, President of the Group Executive Board.

    Group net new money inflows for the quarter were CHF 34.9 billion, with positive inflows in all businesses, bringing the total inflow for the year-to-date to CHF 80.3 billion. Inflows in the private clients business units totalled CHF 18.0 billion in the quarter. Total invested assets at the end of the quarter were CHF 2.28 trillion, a decline of 11% over the quarter, due to sharp declines in markets worldwide and the 10% reversal in the USD/CHF exchange rate.

    Costs, which fell 8% from the second quarter, were at their lowest level this year thanks to a clear focus on expense management, and lower performance-related compensation. Reduced information technology spending prompted a 6% quarter-on-quarter decline in general and administrative expenses.

    Revenues for all key operating businesses held up well with a diverse business mix and a core of asset-based fees proving invaluable. Operating income in the third quarter rose 2% from a year earlier to CHF 8,704 million, as the disruption in transaction revenues and poor equity trading conditions were offset by the inclusion of UBS PaineWebber.

    Impact of terrorist attacks in the U.S.
    UBS was profoundly shocked and saddened by the terrorist attacks in the U.S. on 11 September 2001 and by the scale of the personal tragedy involved.

    "Business considerations appear secondary within the context of recent events and we honor the memory of our employees who lost their lives," Luqman Arnold said, adding, "As a firm, UBS was fortunate not to suffer direct damage to property and could therefore offer support and facilities to others in need."

August 2001

  1. UBS reports results for second quarter 2001: Net profit after tax CHF 1,385 million.

    In the second quarter 2001, UBS achieved a net profit after tax of CHF 1,385 million, 9% lower than first quarter 2001 once adjusted for goodwill amortization, and 12% down on a reported basis. Revenues proved stable, thanks to strong client franchises and a diverse business mix, declining by just 2% from first quarter 2001 to CHF 9,881 million.

    Compared to the strong second quarter last year, net profit after tax was 26% lower once adjusted for significant financial events* and goodwill amortization, or 33% lower on a reported basis. About half of the decline in adjusted net profit was attributable to the performance of UBS Capital, which recorded a loss of CHF 351 million.

    These results come against a backdrop of slowing economic growth in the major economies and uncertainty in securities markets, in contrast to the relatively favourable conditions of second quarter 2000.

    Record levels of underwriting fees, portfolio management fees and investment fund fees helped to bring fee and commission revenue to an all-time high of CHF 5,375 million, representing 54% of the Group's revenues. Costs remain under tight control, with an increase of only 2% from first quarter 2001. Cost discipline ensures that scope remains for selective investment in strategic initiatives.

    "Although these are tough markets, our core businesses remain in good health," said Luqman Arnold, President of the Group Executive Board. "During this quarter we have gained market share in key areas, and attracted significant new client assets to our wealth management businesses."

    Net new money of CHF 24 billion brings the Group total for the year to CHF 45 billion, and total invested assets to CHF 2.56 trillion. Net new money in the private client units rose to CHF 17 billion from CHF 11 billion in the preceding quarter. UBS Asset Management achieved positive net new money in its institutional business (CHF 5 billion) for the first time since 1998, endorsing its successful investment performance.

  2. UBS reports results for second quarter 2001: Net profit after tax CHF 1,385 million.

    In the second quarter 2001, UBS achieved a net profit after tax of CHF 1,385 million, 9% lower than first quarter 2001 once adjusted for goodwill amortization, and 12% down on a reported basis. Revenues proved stable, thanks to strong client franchises and a diverse business mix, declining by just 2% from first quarter 2001 to CHF 9,881 million.

    Compared to the strong second quarter last year, net profit after tax was 26% lower once adjusted for significant financial events* and goodwill amortization, or 33% lower on a reported basis. About half of the decline in adjusted net profit was attributable to the performance of UBS Capital, which recorded a loss of CHF 351 million.

    These results come against a backdrop of slowing economic growth in the major economies and uncertainty in securities markets, in contrast to the relatively favourable conditions of second quarter 2000.

    Record levels of underwriting fees, portfolio management fees and investment fund fees helped to bring fee and commission revenue to an all-time high of CHF 5,375 million, representing 54% of the Group's revenues. Costs remain under tight control, with an increase of only 2% from first quarter 2001. Cost discipline ensures that scope remains for selective investment in strategic initiatives.

    "Although these are tough markets, our core businesses remain in good health," said Luqman Arnold, President of the Group Executive Board. "During this quarter we have gained market share in key areas, and attracted significant new client assets to our wealth management businesses."

    Net new money of CHF 24 billion brings the Group total for the year to CHF 45 billion, and total invested assets to CHF 2.56 trillion. Net new money in the private client units rose to CHF 17 billion from CHF 11 billion in the preceding quarter. UBS Asset Management achieved positive net new money in its institutional business (CHF 5 billion) for the first time since 1998, endorsing its successful investment performance.

May 2001

  1. UBS reports results for first quarter 2001: Net profit after tax CHF 1,579 million.

    In the first quarter 2001, UBS achieved a net profit after tax of CHF 1,579 million. This represents a decline of 29% over the buoyant first quarter 2000, or 19% excluding the goodwill impact of the PaineWebber acquisition, and a decrease of 3% on the preceding quarter, once adjusted for significant financial events*.

    "Our businesses performed encouragingly this quarter, with resilient income and well-controlled costs, despite the weakening equity markets and the industry-wide slow down in investment banking, " commented Luqman Arnold, President of the Group Executive Board.

    With strong trading performance, and fees and commissions accounting for more than half the Group's revenue, operating income was resilient, up 8% from first quarter 2000.

    Tight cost control had a significant influence on the results. Costs in both the Private and Corporate Clients and Private Banking units were lower than for any quarter last year. In UBS Warburg's Corporate and Institutional Clients business unit both the compensation/income ratio and the cost/income ratio were at the same level as the first quarter last year. For the whole Group, non-personnel expenses fell quarter-on-quarter, despite a full quarter's costs from UBS PaineWebber.

    Net new money in the private client units (Private Banking and Private Clients) was CHF 11 billion in the quarter, up from CHF 5 billion in fourth quarter 2000. Net new money for the Group was more than CHF 21 billion, the best quarterly result reported since the UBS/SBC merger. All business units posted healthy inflows despite declining markets and weakening investor confidence in the US. Total invested assets decreased by less than 1% during the quarter to CHF 2,438 billion.

    In the private equity portfolio, deteriorating asset quality led to write-downs of investments, which combined with poor conditions for divestments to produce a loss of CHF 282 million in UBS Capital. UBS Capital expects to show a profit over the remainder of the year.

  2. UBS reports results for first quarter 2001: Net profit after tax CHF 1,579 million.

    In the first quarter 2001, UBS achieved a net profit after tax of CHF 1,579 million. This represents a decline of 29% over the buoyant first quarter 2000, or 19% excluding the goodwill impact of the PaineWebber acquisition, and a decrease of 3% on the preceding quarter, once adjusted for significant financial events*.

    "Our businesses performed encouragingly this quarter, with resilient income and well-controlled costs, despite the weakening equity markets and the industry-wide slow down in investment banking, " commented Luqman Arnold, President of the Group Executive Board.

    With strong trading performance, and fees and commissions accounting for more than half the Group's revenue, operating income was resilient, up 8% from first quarter 2000.

    Tight cost control had a significant influence on the results. Costs in both the Private and Corporate Clients and Private Banking units were lower than for any quarter last year. In UBS Warburg's Corporate and Institutional Clients business unit both the compensation/income ratio and the cost/income ratio were at the same level as the first quarter last year. For the whole Group, non-personnel expenses fell quarter-on-quarter, despite a full quarter's costs from UBS PaineWebber.

    Net new money in the private client units (Private Banking and Private Clients) was CHF 11 billion in the quarter, up from CHF 5 billion in fourth quarter 2000. Net new money for the Group was more than CHF 21 billion, the best quarterly result reported since the UBS/SBC merger. All business units posted healthy inflows despite declining markets and weakening investor confidence in the US. Total invested assets decreased by less than 1% during the quarter to CHF 2,438 billion.

    In the private equity portfolio, deteriorating asset quality led to write-downs of investments, which combined with poor conditions for divestments to produce a loss of CHF 282 million in UBS Capital. UBS Capital expects to show a profit over the remainder of the year.

April 2001

  1. Annual General Meeting of UBS.

February 2001

  1. UBS results for full-year 2000: Net profit after tax CHF 7,792 million.

    UBS achieved a record annual result for 2000 with a net profit of CHF 7,792 million, or CHF 8,132 million once adjusted for significant financial events. This strong performance reflects the skills and dedication of UBS staff, the Group's increasingly distinct positioning and the quality of its earnings across varied market conditions. In a difficult year for the equity markets, the UBS share price rose 23% over the twelve months.

    Pre-goodwill amortization and adjusted for divestments, one-off provisions and restructuring costs, return on equity for the year increased from 18.2% in 1999 to 24.3%, well in excess of UBS's target range of 15-20% across the cycle. On the same basis, earnings per share increased 76% from CHF 12.37 to CHF 21.83. The cost/income ratio for the year was 69.2%, down from 73.3% in 1999. Group assets under management increased by CHF 725 billion to CHF 2,469 billion, boosted by the inclusion of PaineWebber, which more than offset the effect of the falling dollar and weaker equity markets in the latter part of the year.


    Fourth quarter results

    Net profit in the fourth quarter was CHF 1,449 million, or CHF 1,634 million once adjusted for significant financial events. This is 54% higher than in fourth quarter 1999 but 21% below the previous quarter's level. Excluding the estimated impact of the merger with PaineWebber, underlying net profit fell 8% quarter on quarter, an excellent result considering the less favorable market conditions and the seasonal slowdown.

    UBS Switzerland's Private & Corporate Clients business produced another strong result in the fourth quarter and Private Banking also continued its good performance relative to 1999 (+22% compared to fourth quarter 1999). UBS Asset Management's relative investment performance staged an impressive comeback as its core price/value style outperformed growth-based strategies. UBS Warburg's Corporate & Institutional Clients business unit more than doubled its pre-tax profit compared with fourth quarter 1999, with Corporate Finance performing particularly strongly.


    UBS Group Financial Highlights

  2. UBS results for full-year 2000: Net profit after tax CHF 7,792 million.

    UBS achieved a record annual result for 2000 with a net profit of CHF 7,792 million, or CHF 8,132 million once adjusted for significant financial events. This strong performance reflects the skills and dedication of UBS staff, the Group's increasingly distinct positioning and the quality of its earnings across varied market conditions. In a difficult year for the equity markets, the UBS share price rose 23% over the twelve months.

    Pre-goodwill amortization and adjusted for divestments, one-off provisions and restructuring costs, return on equity for the year increased from 18.2% in 1999 to 24.3%, well in excess of UBS's target range of 15-20% across the cycle. On the same basis, earnings per share increased 76% from CHF 12.37 to CHF 21.83. The cost/income ratio for the year was 69.2%, down from 73.3% in 1999. Group assets under management increased by CHF 725 billion to CHF 2,469 billion, boosted by the inclusion of PaineWebber, which more than offset the effect of the falling dollar and weaker equity markets in the latter part of the year.


    Fourth quarter results

    Net profit in the fourth quarter was CHF 1,449 million, or CHF 1,634 million once adjusted for significant financial events. This is 54% higher than in fourth quarter 1999 but 21% below the previous quarter's level. Excluding the estimated impact of the merger with PaineWebber, underlying net profit fell 8% quarter on quarter, an excellent result considering the less favorable market conditions and the seasonal slowdown.

    UBS Switzerland's Private & Corporate Clients business produced another strong result in the fourth quarter and Private Banking also continued its good performance relative to 1999 (+22% compared to fourth quarter 1999). UBS Asset Management's relative investment performance staged an impressive comeback as its core price/value style outperformed growth-based strategies. UBS Warburg's Corporate & Institutional Clients business unit more than doubled its pre-tax profit compared with fourth quarter 1999, with Corporate Finance performing particularly strongly.


    UBS Group Financial Highlights

November 2000

  1. UBS reports detailed results for third quarter 2000: Net profit after tax CHF 2,075 million.

    As already announced in preliminary form, UBS achieved an excellent third quarter result with a net profit after tax and minority interests of CHF 2,075 million. Year-to-date adjusted net profit after tax is
    CHF 6,498 million (+80% compared to the first nine months of 1999).

    Pre-goodwill amortization and adjusted for divestments, one-off gains and provisions, key metrics developed as follows:

  2. UBS announces results of PaineWebber shareholder elections

    UBS announced today the results of PaineWebber shareholders' elections for cash or share consideration in connection with the completed merger between the two organizations.

    All PaineWebber shareholders that elected to exchange their PaineWebber shares for UBS ordinary shares will have their elections honored in full.

    All PaineWebber shareholders that elected to exchange their PaineWebber shares for cash will receive:

September 2000

August 2000

  1. UBS results for second quarter 2000: Net profit after tax CHF 2,052 million.

    UBS achieved an excellent result in second quarter 2000 with a net profit after tax and minority interests of CHF 2,052 million. Once the effect of divestments and one-off provisions is stripped out, this represents outstanding growth of 138% over second quarter 1999. Following its excellent first-quarter performance, UBS reports its best ever half-year results (+84% over first half 1999 on an adjusted basis).

    Pre-goodwill amortization, and adjusted for divestments and one-off provisions, key metrics developed as follows:

  2. Extraordinary General Meeting of UBS on 7 September 2000

    On 12 July 2000, UBS AG and PaineWebber Group Inc. announced that they had entered into a definitive merger agreement. The expected total consideration, based on UBS's share price before the announcement and assuming exercise of all PaineWebber options held by employees, is estimated at USD 12.4 billion. The form of the consideration will be in cash and in UBS shares, with the share component offering the opportunity of a tax-free exchange for PaineWebber shareholders.

    At the Extraordinary General Meeting, UBS shareholders will be asked to approve the creation of 38 million new UBS shares in the form of authorized capital for the merger transaction and 17 million new UBS shares in the form of conditional capital for PaineWebber options outstanding beyond the merger exchange date. Due to the inter-relationship between the two categories, the maximum total number of shares issued either as authorized or conditional capital will not exceed 46 million shares. Any shares issued as a result of these approvals can only be used in the context of the merger transaction.

    The Board of Directors will additionally propose that UBS shareholders on record as of 2 October 2000 be paid a partial dividend of CHF 4.50 per share relating to the first nine months of the year. This is intended to ensure equal treatment of UBS shareholders and PaineWebber stockholders, as PaineWebber stockholders will already have been paid interim dividends for nine months of the year at the merger exchange date.

    The Board of Directors will further propose that Deloitte & Touche Experta AG be elected as independent Special Auditors in compliance with US Securities and Exchange Commission (SEC) requirements.

    Creation of authorized capital
    On 30 June 2000, approximately 146.7 million PaineWebber shares were outstanding. Under the terms of the merger agreement, the percentage of shares of PaineWebber common stock which will be convertible into UBS shares is fixed at 50% - at an exchange ratio of 0.4954 UBS shares for each PaineWebber share. Employee held options account for a further 33.6 million PaineWebber shares. Should all these options be exercised upon consummation of the merger, a maximum total of 45 million UBS shares would be needed. UBS will re-issue approximately 7 million UBS shares currently held in treasury, so that a maximum of 38 million shares in the form of authorized capital will be needed.

    To avoid dilution of earnings and voting power, UBS's Board of Directors and the Group Executive Board are fully committed to keeping the final number of new UBS shares issued as small as possible, subject to maintaining a sound capitalization for the UBS Group. The number of shares that will finally be issued may be reduced by shares temporarily borrowed in the market. Any such borrowed shares will subsequently be replaced by purchases in the market. The Board of Directors proposes that it be granted the right to a "green shoe option" permitting issuance of additional shares from the approved authorized capital during a limited period after the completion of the merger to the extent that market conditions make such replacement purchases less economically desirable for shareholders.

    Creation of conditional capital
    The existing option plans for employees of PaineWebber will be taken over by UBS. If all PaineWebber options were rolled over into similar UBS instruments, a maximum of 17 million UBS shares would be needed to cover future exercise. These will be provided for by the proposed creation of conditional capital.

    The invitation to the Extraordinary General Meeting of UBS AG can be obtained on request from UBS Group Public Relations, E-mail: sh-gpr@ubs.com

    Zurich / Basel, 3 August 2000

    UBS


    Information concerning proxy materials
    This communication is not a solicitation of a proxy from any security holder of Paine Webber Group Inc. UBS and PaineWebber will be filing with the Securities and Exchange Commission a proxy statement/prospectus to be mailed to PaineWebber security holders and other relevant documents concerning the planned merger of PaineWebber into a subsidiary of UBS. WE URGE INVESTORS IN PAINEWEBBER TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors will be able to obtain the documents free of charge at the SEC's website, www.sec.gov. In addition, documents filed with the SEC by UBS will be available free of charge from Investor Relations, UBS, Stockerstrasse 64, CH-8098 Zurich. Documents filed with the SEC by PaineWebber will be available free of charge from Geraldine Banyai, Assistant Secretary, 1285 Avenue of the Americas, New York, New York 10019.
    PaineWebber and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the security holders of PaineWebber in favor of the merger. The directors and executive officers of PaineWebber include the following: D. B. Marron; M. Alexander; S. P. Baum; E. G. Bewkes, Jr.; R. Braun; R. A. Dolan; F. P. Doyle; J. T. Fadden; J. J. Grano, Jr.; J. W. Kinnear; R. N., Kiyono; T. A. Levine; R. M. Loeffler; E. Randall, III; H. Rosovsky; K. Sekiguchi, R. H. Silver; M. B. Sutton; and J. R. Torell III. Collectively, as of February 4, 2000, the directors and executive officers of PaineWebber may be deemed to beneficially own approximately 4.8% of the outstanding shares of PaineWebber common stock. Security holders of PaineWebber may obtain additional information regarding the interests of such participants by reading the proxy statement/prospectus when it becomes available.

July 2000

  1. UBS to merge with PaineWebber.

    Marcel Ospel, President and CEO of UBS, and Donald B. Marron, Chairman and CEO of PaineWebber, announced today that UBS and PaineWebber have entered into a definitive merger agreement.

May 2000

  1. UBS reports record result for first quarter 2000:

    UBS achieved a record result in first quarter 2000 with a net profit after tax and minority interests of CHF 2,216 million. This represents an increase of 41% on a reported basis over first quarter 1999, and a 50% increase adjusted for the divestment proceeds during that quarter. The Group's annualized return on equity substantially exceeded the 15-20% target range: before goodwill amortization and adjusted for the first-quarter 1999 divestment, it rose from 22.2% to 33.2%. On the same basis and adjusted for the recent share split, basic earnings per share increased from CHF 3.75 in first quarter 1999 to CHF 6.04, comfortably achieving the target of double-digit growth. The cost-income ratio before goodwill amortization fell sharply to 66.5% from 79.9% in fourth quarter 1999, to a level slightly below the 67.4% recorded in first quarter 1999.

    Assets under management within the Group increased by CHF 23 billion during the quarter, with gains in Private Banking partially offset by a decrease in institutional assets. Net new money in the private banking units of UBS Switzerland and UBS Warburg grew to CHF 6 billion compared to CHF 3 billion in fourth quarter 1999.

    This is an outstanding result for the Group as a whole and reflects strong performance across the major business groups. UBS Warburg achieved a record result with pre-tax earnings of CHF 1,319 million. Private Banking also showed excellent earnings growth with a pre-tax profit of CHF 1,095 million.

    (Introduction of quarterly analysis to UBS financial reporting: These quarterly financial results provide for the first time analysis of the change in key metrics from the previous quarter, as well as comparing to the same quarter last year. Previously figures were always reported cumulatively through the year. To allow meaningful like-for-like comparisons, 1999 figures have been restated to reflect the business regrouping announced in February 2000.)

April 2000

  1. UBS Annual General Meeting

November 1999

  1. UBS results for first nine months of 1999 - Net profit after tax over CHF 5 billion

    UBS reports a Group pre-tax profit of CHF 6,826 million for the nine-month period, compared to CHF 3,465 million in the same period last year. Total operating income increased by 31% to CHF 21,763 million, while total operating expenses were up 14% to CHF 14,937 million. The cost-income ratio improved from 77% to 65.9%.

    The Group accounts contain total pre-tax gains of CHF 1,826 million (CHF 1,478 million after tax), almost all of which stem from the sale of the 25% stake in Swiss Life/Rentenanstalt, the divestment of Bank Julius Baer registered shares and the disposal of the bank's Global Trade Finance operations outside Switzerland. The result does not reflect the announced acquisition of Global Asset Management (GAM) or that of Allegis Realty Investors LLC.

    Assets under management

    During the nine-month period, assets under management increased 6% in Private Banking and 2% for the Group as a whole. Assets under management will also be positively influenced by the announced acquisition of GAM and the continued integration of the international private banking business of Bank of America.

August 1999

  1. UBS 1999 half-year results: Net profit after tax CHF 4 billion - merger completed

    UBS reports a Group pre-tax profit of CHF 5,239 million for first-half 1999, 14% higher than for the equivalent 1998 period. Total operating income was up 5% to CHF 15,240 million, while total operating expenses increased by 1% to CHF 10,001 million. The cost-income ratio improved from 66.8% to 63.0%.

    The Group accounts include a pre-tax gain of CHF 1,800 million from the sale of the 25% stake in Swiss Life / Rentenanstalt, the divestment of the Julius Baer registered shareholding and from the disposal of the international operations of the Global Trade Finance business. In the corresponding period of the previous year, UBS realized a pre-tax gain of CHF 1,058 million from the sale of BSI-Banca della Svizzera Italiana and Adler. Adjusted for the mentioned pre-tax gains on divestments made in first-half 1998 and first-half 1999, their impact on operating income and expense and the taxes associated with these items, net profit was 13 % higher than for the equivalent 1998 period.

    UBS pleased with half-year result

    UBS is pleased with the group financial performance which is well within expectations considering the background of an ambitious and challenging integration process including the complex transition to a common IT platform in Switzerland. Thanks to an outstanding effort by all concerned, the integration process was completed on schedule.

    According to Marcel Ospel, President and Group CEO, "UBS chose and successfully executed a rapid integration despite the challenge thus created for growing the normal business in the short term. By doing so, we have put ourselves in a position as quickly as possible to concentrate on further building the franchise and accelerating its growth."

    Challenges facing a global integrated investment services firm

    UBS has not only accomplished the swiftest integration of two banking groups of this size but has also positioned itself successfully as a global integrated investment services firm and as the leading bank in Switzerland. Ongoing globalization, the advent of new technology-based solutions and the increased importance of disciplined risk management create enormous opportunities. As an integrated investment services provider, UBS has the ability to respond rapidly and flexibly to evolving client needs, offering a full range of quality products across all major markets. It also possesses the financial strength and earnings generating capacity to benefit from these opportunities to an exceptional degree.

    UBS expects the global market for investment services to experience strong growth, driven by demographic trends, pension and social security reform and in Europe additionally by the introduction of the euro. UBS will participate fully in this attractive business environment and leverage the potential in this market provided by its client franchise and its superior products and technology.

    UBS is equally well-placed to benefit from growth in e-commerce. The Internet, which is enjoying increasing acceptance among clients, is developing into a powerful global marketing and distribution channel. UBS intends to exploit this technology to deliver a full range of electronic services to its clients. Already a market leader in electronic banking, UBS has an excellent basis for success going forward.

May 1999

  1. UBS: strong 1st quarter performance

    UBS reports a first-quarter net profit of CHF 1,621 million, an increase of 21% over the equivalent 1998 period. Operating income rose 3% to CHF 6.9 billion, while operating expenses fell 3% to CHF 4.8 billion. The cost-income ratio improved from 7O.6% to 66.5%. These figures confirm that profitability and revenue-generating capacities are developing well and that UBS is successfully on track with its clear strategic focus.

    The Group financial statements include a post-tax gain of CHF 90 million from the sale of the Julius Baer registered share holding. The substantial proceeds from the divestment of the 25% stake in Swiss Life/Rentenanstalt and the sale of the international trade finance business to Standard Chartered PLC will be booked in the second quarter of 1999.

    (Note: The financial accounts were calculated retroactively for first quarter 1998. The published segment reports are not available for the corresponding first quarter 1998 results)

April 1999

  1. UBS Ordinary General Meeting

November 1998

  1. UBS: Group results to 30 September 1998

    Net profit after tax and minorities was influenced by the sale of BSI-Banca della Svizzera Italiana, the provision associated with the global settlement on dormant accounts and World War II issues reached in the United States, losses resulting from UBS's exposure to Long Term Capital Management (LTCM) and revenue reductions on pre-merger equity derivatives positions.