08/02/2011

By Max Clarke

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.

2010 bonus pool reduced by 10% to CHF 4.3 billion from CHF 4.8 billion in 2009.

In the fourth quarter net profit attributable was CHF 1,290 million, with diluted earnings per share of CHF 0.33, reflecting a significantly lower tax credit of CHF 149 million compared with CHF 825 million in the third quarter
Fourth quarter profit before tax increased to CHF 1,161 million from CHF 818 million in the third quarter. Results reflect increased client activity across all businesses and includes credit loss expenses of CHF 164 million, own credit losses of CHF 509 million as well as increased general and administrative expenses.

Industry leading BIS tier 1 capital ratio of 17.7% compared with 16.7% in the prior quarter.

BIS core tier 1 capital ratio increased to 15.3% from 14.2% in the third quarter.

Net new money stabilized with net new money of CHF 7.1 billion in the quarter. Inflows across all asset gathering businesses.

Our businesses: Wealth Management pre-tax profit stable. Retail & Corporate's pre-tax profit lower on increased credit loss expenses. Positive revenue momentum in Wealth Management Americas but the business incurred a pre-tax loss due to litigation provisions. Considerably improved net new money inflows of CHF 3.4 billion. Pre-tax profits in Global Asset Management up 18%. Improved Investment Bank result on third quarter, with revenues up 17%.

Balance sheet decreased 10% and risk-weighted assets down 5% over the fourth quarter

Commenting on UBS's fourth quarter 2010 results, Group CEO Oswald J. Grübel said: "While we made substantial progress in 2010, we are fully aware that we have to continue to improve our results."