UBS has restated its annual report for 2008, including the financial statements and other information. The full, restated Annual Report 2008 in English can be downloaded at www.ubs.com/annualreporting. Your attention is directed in particular to pages 33 and 276 of the restated report which contain a more detailed description of the changes made in the restatement. The restated annual report is not available in languages other than English.
The US Securities and Exchange Commission on 21 May 2009. The document replaces that filed with the US SEC on 11 March 2009. An electronic version of the filing is available for viewing and downloading at www.ubs.com/sec-filings.
Summary of key changes
The restatement follows identification of accounting errors included in the 2008 Group financial statements issued on 11 March 2009. Though these errors were not material to annual or quarterly financial statements for 2008, related corrections would have been material to first quarter 2009 financial statements.
The restatement comprises three items in excess of CHF 100 million, as follows:
Increased fair value of auction rate securities purchase commitments at 31 December 2008 (charge to net trading income of Wealth Management US of CHF 112 million).
Calculation of interest income based on the effective interest rate method for assets reclassified from "held-for-trading" to "loans and receivables" in fourth quarter 2008 (reduction of the interest income of the Investment Bank by CHF 180 million).
Realization of a foreign currency translation loss deferred in shareholders' equity due to the partial disposals of an investment in a consolidated investment fund (reduction of other income of the Corporate Center by CHF 192 million).
In addition, a number of misstatements, individually below CHF 65 million, were adjusted and resulted in an increase of net profit attributable to UBS shareholders by CHF 79 million.
Impact on results
For full-year 2008, the total net impact of all restated items was a reduction of net profit and net profit attributable to UBS shareholders of CHF 405 million, and a reduction of equity and equity attributable to UBS shareholders of CHF 269 million. The BIS tier 1 capital decreased by CHF 217 million, the BIS total ratio decreased 0.1% and the BIS tier 1 ratio was not affected by the restatement.
On a quarterly basis, net profits attributable to UBS shareholders were reduced by the following amounts for 2008: CHF 82 million in the first quarter, CHF 37 million in the second quarter, CHF 13 million in the third quarter and CHF 273 million in the fourth quarter.