Item 1: Annual Report, Group and Parent Company Accounts for 2003 Reports of the Group and Statutory Auditors
The Board of Directors proposes that the report on the financial year 2003 and the Group and Parent Company Accounts for 2003 be approved.
The reports of the Board of Directors and the Group Executive Board are contained in the Financial Report. Additional information on strategy and organization of the Group, its activities and those of the Business Groups, on risk management and control as well as on corporate bodies, their composition and authorities can be found in the "Handbook 2003/2004". This document also contains the comprehensive information relating to corporate governance as required by the SWX Swiss Exchange directive. Copies of both publications can be ordered by shareholders and are also available on the Internet at www.ubs.com/investors. All shareholders registered in the share register automatically receive a copy of the Annual Review, which contains summary information with regard to our business performance in 2003.
The Group income statement shows total operating income of CHF 33,972 million and total operating expenses of CHF 25,624 million, resulting in a pre-tax profit of CHF 8,003 million and a net profit of CHF 6,385 million. At year-end, total consolidated assets amounted to CHF 1,386.0 billion, up CHF 204.9 billion from a year earlier. Shareholders' equity totaled CHF 35.4 billion.
Parent Company net profit was CHF 4,197 million. Total operating income of CHF 19,117 million and total operating expenses of CHF 12,832 million resulted in an operating profit of CHF 6,285 million. Depreciations, write-offs and provisions amounted to CHF 1,577 million and extraordinary income to CHF 92 million. Extraordinary expenses totaled CHF 1 million and taxes amounted to CHF 602 million.
Ernst&Young Ltd. as Group and Statutory Auditors recommend in unqualified reports to the Annual General Meeting that the Group and Parent Company Accounts be approved. The Group Auditors confirm that "the Group financial statements present fairly, in all material respects, the consolidated financial position of UBS AG as of 31 December 2003 and 2002, and the consolidated results of operations and cash flows for each of the three years in the period ended 31 December 2003, in conformity with International Financial Reporting Standards (IFRS), and they comply with Swiss law". The Statutory Auditors express their opinion that "the accounting records and financial statements and the proposed appropriation of available earnings comply with Swiss law and the company's Articles of Association".