Item 1: Annual Report, Group Accounts for 1998 and Parent Company Accounts for the period 1 October 1997 to 31 December 1998, Reports of the Group and Parent Company Auditors
The Board of Directors proposes that the report on the financial year 1998, the Group Accounts for the year ending 31 December 1998 and the Parent Company Accounts for the extended financial year from 1 October 1997 to 31 December 1998 be approved.
The report on the financial year 1998 is contained in the Annual Review, a copy of which is sent to all registered shareholders. A more detailed version is published in the Financial Report, copies of which can be ordered by shareholders.
Operating income as per the Group Income Statement came to CHF 22,328 million with operating expenses of CHF 18,258 million; pre-tax profit was CHF 4,070 million and profit after taxes and minority interests was CHF 3,030 million. The Group's total assets were down 13% to CHF 944.1 billion.
The Parent Company Accounts cover the period from 1 October 1997 to 31 December 1998 in accordance with Art. 32 of the articles of association of UBS AG. They thus contain the mergerrelated restructuring provision of CHF 7 billion, which was charged to the 1997 Group Accounts. In the Parent Company Accounts, which cover a period of 15 months, operating income amounts to CHF 23,062 million and operating expenses to CHF 14,267 million, with an operating profit of CHF 8,795 million. After deducting depreciation and amortization, provisions, extraordinary income and expenses as well as taxes, net profit for the period came to CHF 650 million.
The auditors ATAG Ernst & Young Auditing Ltd. recommend in their reports to the General Meeting of Shareholders that the Group Accounts and the Parent Company Accounts be approved.