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Thursday 30 November, 2000


3rd Quarter & 9 Mths Results

28 November 2000

UBS reports detailed results for third quarter 2000: 
Net profit after tax CHF 2,075 million.
UBS reports a net profit after tax and minority interests of CHF 2,075 million
for third quarter 2000. This represents growth of 73% over third quarter 1999 on
an adjusted basis. Pre-goodwill amortization, basic earnings per share were CHF
5.46 and the annualized return on equity 29.1%. Group assets under management
increased 2% during the third quarter to total CHF 1,746 billion at the end of

Zurich/Basel, 28 November 2000 - 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:

-  Annualized nine-month return on equity increased from 18.8% to 29.1%; 
   Basic earnings per share rose from CHF 3.22 (third quarter 1999) to CHF 5.46 
-  The cost/income ratio was 68.0% compared to 71.4% in third quarter 1999. 

Group assets under management increased 2% during the third quarter, driven by
positive investment performance and an improvement in net new money across all
business groups.

The excellent overall result for the third quarter was due in part to a very
strong performance by UBS Warburg, whose Corporate & Institutional Clients
business unit reported profits before tax more than double those achieved in the
same quarter last year. The strength of the unit's secondary markets franchise
and its relatively lower exposure to the telecommunications, media and
technology sectors ensured that, whilst earnings fell somewhat from the earlier
quarters of 2000, the effect was less than for the investment banking industry
in general. 

UBS Switzerland achieved its strongest third quarter result ever. The
performance of the Private & Corporate Clients business unit was only slightly
behind the last two record quarters, aided by further successful cost reduction.
Private Banking continued its improved performance with earnings increasing from
second quarter 2000 despite quieter markets, and up 22% from a year ago. 

UBS Group Financial Highlights

CHF million, except where indicated           
                              Quarter ended     % change from     Year-to-date
                  30.9.00   30.6.00   30.9.99'   2Q00   3Q99   30.9.00 30.9.00'

Income statement
 key figures

Operating income    8,545     9,200     6,534     (7)     31    27,102   21,636
Operating expenses  5,842     6,548     4,921    (11)     19    18,839   14,992
Operating profit                                                
 before tax         2,703     2,652     1,613      2      68     8,263    6,644
Net profit          2,075     2,052     1,225      1      69     6,343    5,084
 ratio (%) (2)       69.5      72.8      72.3                     70.1     66.5
 ratio before 
 amortization (%)
 (2.3)               68.0      71.4      71.1                     68.6     65.4

Per share data (CHF)
Basic earnings
 per share (6)       5.15      5.24      3.07      (2)    68     16.05    12.48
Basic earnings
 per share 
 before goodwill
 (3.6)               5.46      5.57      3.27      (2)    67     17.07    13.10
Diluted earnings
 per share (6)       5.09      5.19      3.05      (2)    67     15.88    12.38
Diluted earnings 
 per share before
 goodwill (3.6)      5.40      5.51      3.26      (2)    66     16.88    13.00 
Return on
 equity (%)
Return on 
 equity (4)                                                       26.9     23.0 
Return on 
 equity before
 goodwill (3.4)                                                   28.6     24.2

                                                          % change from     
As of                  30.9.00   30.6.00   31.12.99'    30.6.00  31.12.99'

Balance sheet
 key figures
Total assets         1,010,233   946,307     898,888          7        12
Shareholders' equity    36,928    31,876      30,608         16        21
Market capitalization   95,053    98,797      92,642

BIS capital ratios
Tier 1 (%)                11.7      12.1        10.6
Total BIS (%)             15.4      15.9        14.5
Risk-weighted assets   276,837   264,706     273,107

Total assets under
(CHF billion)            1,746     1,711       1,744          2         0 

Headcount (full
 time equivalents) (5)  48,099    47,744      49,058          1        (2)

Long-term ratings
Moody's, New York          Aa1       Aa1         Aa1
Fitch/IBCA, London         AAA       AAA         AAA
Standard & Poor's,         AA+       AA+         AA+ 
 New York

Earnings adjusted for significant financial events

                         Quarter ended         % change from      Year-to-date
                  30.9.00   30.6.00   30.9.99'   2Q00   3Q99  30.9.00  30.9.99'

CHF million
Operating income    8,545     9,200     6,508     (7)     31    27,102   19,810
Operating expenses  5,842     6,348     4,921     (8)     19    18,639   14,992
Operating profit              
 before tax         2,703     2,852     1,587     (5)     70     8,463    4,818
Net profit          2,075     2,207     1,202     (6)     73     6,498    3,606

 ratio before
 goodwill (%)
 (2.3)               68.0      69.2      71.4                     67.9     71.1
Basic earnings       
 per share before
 goodwill (CHF)
 (3.6)               5.46      5.97      3.22     (9)     70     17.46     9.47
Diluted earnings 
 per share before
 (3.6)               5.40      5.90      3.20     (8)     69     17.27     9.40

Return on 
 equity before
 goodwill (%) 
 (3.4)                                                           29.1      18.8

(1) The 1999 figures have been restated to reflect retroactive changes in      
    accounting policies arising from newly applicable International Accounting  
   Standards and changes in presentation. 

(2) Operating expenses/operating income before credit loss expense.

(3) The amortization of goodwill and other purchased intangible assets are
    excluded from the calculation.

(4) Annualized net profit/ average shareholders' equity excluding dividends.

(5) The Group headcount does not include the Klinik Hirslanden AG headcount of  
   1,859, 1,885 and 1,853 for 30 September 2000, 30 June 2000 and 31 December
    1999, respectively.

(6) 1999 share figures are restated for the two-for-one share split, effective
    8 May 2000.

Strategic initiatives

The merger of UBS and PaineWebber creating a pre-eminent global investment
services firm was formally completed on 3 November, less than four months after
announcement. In September, UBS shareholders gave their near unanimous approval
of the capital increase for use in the transaction, and in October PaineWebber
shareholders overwhelmingly approved the merger. The combination of
PaineWebber's strong affluent client franchise in the United States with UBS's
international reach and product range opens up major opportunities for further
growth. PaineWebber brings 2.7 million new investment clients to UBS's customer
franchise and increases Group assets under management by about CHF 850 billion.
The integration of PaineWebber into the UBS Warburg business group is proceeding
very smoothly and will be complete by year-end. 98% of PaineWebber employees
offered employment letters by UBS have accepted their offers. The capital
markets activities of PaineWebber are being fully integrated with those of UBS
Warburg. PaineWebber's private clients and asset management businesses will
continue under their current management and will absorb all UBS Warburg's
existing private client activities. The PaineWebber brand will be retained for
all US private clients business.

Financing the transaction: In completing the transaction, UBS acquired a total
of 163.8 million PaineWebber shares for a total consideration of USD 11.8
billion (CHF 20.8 billion). Under the terms of the merger agreement, the
consideration was satisfied by a cash payment of USD 6.0 billion (CHF 10.6
billion) and delivery of 40.6 million UBS shares. UBS made an initial issuance
of 12 million ordinary shares from authorized capital, re-issued 7 million
ordinary shares held in Treasury and borrowed the remaining shares in the

Announcement of top-management succession plans: In October, UBS announced the
decision by Alex Krauer, Chairman of the Board of Directors, to step down from
his function after the Annual General Meeting on 26 April 2001. Shareholders
will be asked to approve the appointment of Marcel Ospel, Group Chief Executive
Officer, as his successor. The Board of Directors has also nominated Luqman
Arnold as the new President of the Group Executive Board. In addition to his new
function, Luqman Arnold will continue to directly supervise the finance and risk
management functions.
To more accurately reflect UBS's global reach and international business at
Board level, the Annual General Meeting will additionally be requested to elect
three new non-Swiss directors.

Treasury share repurchase program: On 6 November 2000, UBS started a Treasury
share repurchase program that will run until 30 June 2001 at the latest. Shares
repurchased will not be cancelled but will be used for Treasury purposes,
helping to offset the capital-increasing effect of UBS's strong cashflow
generation. 6,4 million shares were purchased up to 27 November 2000, at an
average price of CHF 252 per share. 


UBS is pleased to have been able to report strong results so far this year and
to have maintained this performance through the recent more mixed market
conditions. The fourth quarter is normally the quietest part of the year in most
of UBS's businesses, and the Group expects this year to be no exception. In
addition, UBS expects a one-off impact in the fourth quarter from PaineWebber
integration and restructuring costs.

UBS is nevertheless confident that it can complete 2000 in robust form and that
it is excellently positioned for further success in 2001. The fourth quarter
results will be presented together with the full-year financials on 22 February

Results of the business groups

Reporting by business group

CHF million
for the 3-month period ended
                                              UBS Asset
                  UBS Switzerland             Management       UBS Warburg   
                30.9.00   30.9.99'   30.9.00    30.9.99'     30.9.00  30.9.99'

Revenues          3,411     3,255        493        369        4,458     3,179
Credit loss       
 expense (2)       (183)     (286)         0          0          (49)      (69)

Total operating
 income           3,228     2,969        493        369        4,409     3,110

 expenses         1,218     1,156        225        125        2,321     1,713
General and 
 expenses           537       699        105         73          765       662
Depreciation        114        86         12         13          146       156
Amortization of 
 goodwill and
 assets               8         9         67         26           41        36

Total operating 
 expenses         1,877      1,950       409        237        3,273     2,567

Business Group
 before tax       1,351      1,019        84       132         1,136       543
Tax expense

Net profit 

Net profit

CHF million
for the 3-month period ended

                        Corporate Center                      UBS Group
                      30.9.00    30.9.99'   30.9.00            30.9.99'     

Revenues                   41          6      8,403               6,809
Credit loss 
 expense (2)              374         80        142                (275)

Total operating
 income                   415         86      8,545               6,534

 expenses                  99        110      3,863               3,104
General and                
 expenses                  96        (43)     1,503               1,391
Depreciation               78         90        350                 345
Amortization of 
 goodwill and
 assets                    10         10        126                  81

Total operating 
 expenses                 283        167      5,842               4,921

Business Group
 before tax               132        (81)     2,703               1,613
Tax expense                                     621                 374

Net profit 
 interests                                    2,082               1,239
 interests                                       (7)                (14)        

Net profit                                    2,075               1,225

(1) The 1999 figures have been restated to reflect retroactive changes in       
   accounting policy and changes in presentation.
(2) In order to show the relevant Business Group performance over time,         
   adjusted expected loss figures rather than the net credit loss expense are   
  reported for all Business Groups. The statistically derived adjusted          
 expected losses reflect the inherent counterparty and country risks in the     
respective portfolios. The difference between the statistically derived        
adjusted expected loss figures to the net credit loss expenses for             
financial reporting purposes is reported in the Corporate Center. The          
breakdown by Business Groups of the net credit loss expense for financial      
reporting purposes of CHF (142) million for the 3-month period ended 30        
September 2000(CHF 275 million for the 3-month period ended 30 September       
1999) is as follows: UBS Switzerland CHF (306) million (CHF 290 million),      
UBS Warburg CHF 164 million (CHF (10 million), Corporate Center CHF 0          
million (CHF (5) million).

UBS Switzerland

UBS's position as best online broker in Switzerland was re-affirmed at the end
of September by BlueSky Ratings TM, an independent provider of online broker
ratings. The number of e-banking contracts increased to 534,000 during the
quarter, up from 506,000 at the end of June. 20% of all payment orders and 12%
of all UBS Switzerland stock exchange orders are now transacted via e-banking
channels. On 21 September 2000, after a highly successful two-month pilot phase,
UBS launched e-banking wap for all e-banking clients, making it one of the first
banks in the world to offer stock-market transactions via wap mobile phones.

Private & Corporate Clients
The Private & Corporate Clients business unit had a very good quarter,
delivering a pre-tax profit of CHF 464 million (+61% compared to third quarter
1999), but fell slightly short of its record second quarter performance (-12%).
Operating income was 5% lower than for the second quarter due to lower net
interest income and certain one-off revenues recorded in the previous period.
Expected credit loss expense decreased again, reflecting continued improvements
in asset quality. Operating expenses were 3% lower, consistent with the
continued focus on cost management. Compared to second quarter 2000, the
pre-goodwill cost/income ratio before credit loss expense rose slightly from 62%
to 64%. Assets under management increased by CHF 1 billion to CHF 440 billion,
with the growth coming from net new money. 

In September, UBS announced the creation of its own life insurance company,
which it plans to launch in the first quarter of 2001. The new subsidiary will
strengthen UBS's life insurance content, whilst retaining its open architecture

UBS, in partnership with PayNet, has also implemented a new electronic billing
presentment and payment system, making UBS the first Swiss bank to provide a
fully integrated business-to-business electronic payment solution linking
suppliers, business clients and their bank. UBS plans to expand the service
early next year to cover business-to-consumer billing.

Private Banking
Pre-tax profit at UBS Private Banking was CHF 887 million, slightly higher than
for the second quarter and 22% up on third quarter 1999. Operating income was
virtually stable compared to second quarter 2000, while operating expenses were
2% lower. The pre-goodwill cost/income ratio improved slightly from 45% to 44%.
Assets under management increased by CHF 24 billion during the quarter to CHF
707 billion, reflecting strong investment performance and net new money of CHF
0.5 billion.

The third quarter saw the launch of UBS Switzerland's Investment Center which
consolidates the research capabilities and investment strategies of UBS
Switzerland's two business units, creating high-quality investment advice
specifically suited to private clients.

The number of client mandates for the new Active Portfolio Advisory (APA) and
Active Portfolio Supervision (APS) services continued to grow at a significant
rate. APS provides clients with investment recommendations whenever their
portfolio breaches specified parameters while APA additionally gives direct
access to a dedicated investment specialist and tailor-made strategies.

Since September, UBS Private Banking has been offering GAM Funds and GAM
discretionary portfolio management to clients of UBS Switzerland. GAM's mission
is to provide clients with access to the best investment talent available
worldwide, offering a choice of active investment styles and a range of
well-renowned funds. UBS Private Banking is further developing its open fund
architecture and will make available a pre-screened selection of best-in-class
funds from UBS, GAM and third parties through multiple access channels.

UBS Asset Management

Institutional Asset Management
Institutional Asset Management reported a pre-tax profit of CHF 58 million for
the third quarter (-2% compared to second quarter 2000). Operating income and
operating expenses both increased as the new O'Connor business became fully
operational. Total assets under management rose from CHF 525 billion to CHF 528
billion during the quarter principally as a result of currency movements. Net
outflows moderated further, with net new money losses of CHF 9 billion
significantly lower than in the previous quarters.

UBS Asset Management launched a number of initiatives during the quarter to
expand its presence in Asia. In Japan, a partnership with Mitsubishi Corporation
was announced, leading to the launch in 2001 of a joint venture investment
advisory firm to manage Real Estate Investment Trusts (REITs). In Hong Kong, an
Equities Investment Team covering Greater China will be established over the
next few months.

Investment Funds/GAM
The Investment Funds/GAM business unit achieved a pre-tax profit of CHF 26
million. Operating income decreased slightly while operating expenses were
unchanged. Assets under management increased from CHF 225 billion to CHF 227
billion, the result of investment performance and slight growth in net new
As part of its strategy to expand its international fund distribution
capabilities, UBS Asset Management has launched its new distribution platform
[email protected] designed to provide clients and staff of distribution partners with
fund-based investment solutions. The first such tie-up, announced in November,
is with Lufthansa Miles & More. 

UBS Asset Management also recently acquired Fondvest AG, a company specializing
in independent advisory and distribution services in the fund business. Fondvest
provides clients with a comprehensive range of funds from Swiss and foreign
providers. UBS has thus secured access to an independent service platform in the
dynamic growth market of open fund distribution.

UBS Warburg

Corporate & Institutional Clients
The Corporate & Institutional Clients business unit produced a pre-tax profit of
CHF 1,210 million, up 116% over third quarter 1999. Year-to-date pre-tax profits
of CHF 4,075 million have increased 128% from the same period in 1999,
confirming the business unit's consistent strong performance this year. 

UBS Warburg's ranking in Completed Global Mergers and Acquisitions has improved
during the quarter to 5th year-to-date from 6th at half-year. During the
quarter, UBS Warburg was involved as adviser in several significant global
transactions, including the offer made by the Italian internet service provider
Tiscali for its Dutch rival World Online and the purchase by Foster's Brewing
Group of the California-based Beringer Wine Estates Holdings Inc.
In the international bond markets UBS Warburg's ranking remains good, with
year-to-date positions of 1st in Eurobonds and 5th in International Bonds. The
business group continued to improve its performance in the international primary
equity markets, with its ranking in International Equity New Issues increasing
from 11th at half-year to 9th year-to-date.

Equities revenues were somewhat lower than during the second quarter of 2000,
reflecting the decrease in market volumes during the period. Nevertheless, the
equity franchise continued to perform extremely well with increased revenues
compared with third quarter 1999, largely driven by secondary client activity.
In Fixed Income, UBS Warburg's Governments, Derivatives, Investment Grade and
Emerging Markets businesses delivered excellent results. Corporate Finance also
performed very well, driven by favorable market conditions. The recent
distribution-led expansion of the Corporate & Institutional Clients business
unit in the high-yield bonds and leveraged finance business has generated
significant market share gains and has not resulted in any significant holdings
of unsyndicated bond or loan positions, or material mark-downs. UBS Warburg has
only recently begun to build its franchise in the telecommunications, media and
technology sectors and is therefore not significantly impacted by the recent
swings in valuations and shifts in levels of client activity. Personnel expenses
increased 37% from the same quarter last year to CHF 2,193 million, reflecting
higher performance-related compensation. 

The pre-goodwill cost/income ratio was 70%, representing a significant
improvement over the 78% recorded in third quarter 1999. Market risk
utilization, as measured by average Value-at-Risk (VaR), decreased from CHF 253
million to CHF 238 million in the third quarter. The ratio of non-performing
loans to total loans was 2.1%, down from 2.7% at the end of June. 

UBS Warburg's web-based Business-to-Business Solution IBOL (Investment Banking
Online) continues its success. Approximately USD 12 billion of primary debt was
raised through DebtWebTM in third quarter 2000, bringing the year-to-date total
to USD 54 billion. Some USD 17 billion of new equity issues were marketed on
DealKeyTM during the quarter. 

UBS Capital
UBS Capital, the private equity arm of UBS Warburg, reported a pre-tax profit of
CHF 46 million. Operating income grew to CHF 79 million, a marked increase over
second quarter 2000 when write-downs were made to the value of some
under-performing investments in the portfolio. Operating expenses were CHF 33
million for the quarter, a decrease of 30%. UBS Capital has made CHF 0.7 billion
of new investments during the quarter, bringing the total book value to CHF 4.5

Private Clients
The Private Clients business unit reduced losses to CHF 47 million compared to
CHF 69 million in the second quarter. Assets under management increased 19% to
CHF 44 billion, including net new money of CHF 8 billion. The sharp changes in
the quarter-on-quarter net new money trend reflect the relatively early stage of
this business unit's development. UBS Warburg Private Clients does not expect to
repeat this exceptional performance in the fourth quarter.

With the completion of the merger, the US portion of UBS Warburg's Private
Clients business will be added to the existing PaineWebber private clients
business in the US. This integration is proceeding well. The European and
Asia-Pacific Private Clients businesses will be combined with e-services, under
a single management and integrated business model. UBS Warburg will leverage the
management, technology and experience of PaineWebber to establish a truly
adviser-centric business model, focused on core affluent and high net worth
clients, building on the existing client base, content and resources.

During the third quarter, UBS Warburg's e-services project delivered its
pre-launch objectives in a timely and very satisfactory manner: a UK banking
license was received from the Financial Services Authority (FSA), with a
passport to all European Union countries. The real-time e-services platform,
which is multi-currency, multi-entity and multi-lingual, has also been built and
successfully tested.

Following the decision to integrate e-services with the Private Clients unit and
re-align its strategic focus, e-services' expansion plans were put on hold,
reducing operating expenses to CHF 68 million (-28%) compared to the second
The merger with PaineWebber provides UBS Warburg with a unique opportunity to
extend PaineWebber's highly successful US adviser-centric business model to the
European onshore high net worth and affluent private clients market. Together
with the existing non-US business of UBS Warburg Private Clients, e-services
will form the core of this new venture, which will focus on premium private and
investment clients. The back-end systems developed for e-services will be
integrated with front-end technology based on PaineWebber's industry-leading
online services.  

Results from the Group financial accounts
UBS Group Income Statement

CHF million              Quarter ended          % change from    Year-to-date
                 30.9.00   30.6.00   30.9.99'   2Q00   3Q99   30.9.00  30.9.00'

Operating income   
Interest income    12,480    12,682     9,353     (2)     33    36,559   25,646
Interest expense (10,649)  (10,445)   (7,940)    (2)    (34)  (30,402) (21,480)

Net interest income 1,831     2,237     1,413     (18)    30     6,157    4,166
Credit loss/
 recovery/expense    142       208      (275)      -      -       225     (910)

Net interest 
 income after 
 credit loss
 recovery/expense   1,973     2,445     1,138     (19)    73     6,382    3,256

Net fee and 
 commission income  3,865     3,756     3,066       3     26    11,700    9,250
Net trading income  2,368     2,691     2,097     (12)    13     8,037    6,557
Net gains from                                                      
 disposal of                                                              
 associates and 
 subsidiaries           0        21        (6)      -      -        23    1,772
Other income          339       287       239      18     42       960      801

Total operating
 income             8,545     9,200     6,534      (7)    31    27,102   21,636

Operating expenses
Personnel           3,863     4,354     3,104     (11)    24    12,739    9,923
General and                                                      
 administrative     1,503     1,743     1,391     (14)     8     4,677    3,779
Depreciation and
 amortization         476       451       426       6     12     1,423    1,290

Total operating 
 expenses           5,842     6,548     4,921     (11)    19    18,839   14,992

Operating profit
 before tax and
 minority interests 2,703     2,652     1,613       2     68     8,263    6,644

Tax expense           621       591       374       5     66     1,878    1,525

Net profit before
 minority interests 2,082     2,061     1,239       1     68     6,385    5,119

Minority interests     (7)       (9)      (14)     22     50       (42)    (35)

Net profit          2,075     2,052     1,225       1     69     6,343    5,084

(1) The 1999 figures have been restated to reflect retroactive changes in 
    accounting policy arising from newly applicable International Accounting
    Standards and changes in presentation.

Total operating income increased 31% over the third quarter of 1999 to CHF 8,545
million. Net interest income before credit loss expense rose to CHF 1,831
million (+30% over third quarter 1999), reflecting higher income from securities
lending and borrowing and from lending to clients and banks. 
The sustained rebound in the Swiss economy enabled UBS to realize a write-back
of CHF 142 million in credit loss expenses during the third quarter. This
continuing favorable experience is in sharp contrast to the CHF 275 million of
credit loss expenses recorded in third quarter 1999. The significant reduction
in the international loan portfolio achieved during the past two years leaves
UBS well positioned for the less positive credit conditions expected to prevail
outside Switzerland. In particular, UBS's loan exposure to the telecom sector is
relatively small, representing less than 2% of gross loans outstanding. The
further improvement in the credit risk portfolio is also evident in the
reduction of non-performing loans by CHF 956 million (-8%) to 
CHF 11.1 billion during the third quarter. This represents 3.9% of the total
loan book of CHF 282.4 billion. 

Net fee and commission income was CHF 3,865 million, an increase of 26% over
third quarter 1999. Brokerage fees rose strongly from the same period last year,
reflecting higher client activity in UBS Switzerland and busier markets.
Underwriting fees and corporate finance fees were up 65% and 71% respectively
compared to third quarter 1999. Portfolio and other management and advisory fees
also developed well, driven partly by the new O'Connor business. The growth in
investment fund fees reflects the addition of GAM, purchased in fourth quarter
1999, increased fund assets and the greater proportion of client money invested
in higher-margin equity funds.

Net trading income was CHF 2,368 million (+13% over third quarter 1999). Equity
trading revenues were well ahead of third quarter 1999 but, when combined with
dividend income, fell slightly in comparison to second quarter 2000, reflecting
the seasonal reduction in market activity and trading opportunities normally
experienced during the summer months.

Other income increased 42% to CHF 339 million compared to third quarter 1999,
primarily due to the inclusion of income from Klinik Hirslanden, which was
consolidated for the first time in fourth quarter 1999.

Total operating expenses increased 19% over third quarter 1999 to CHF 5,842
million. Once again, this is largely due to higher performance-related
compensation connected with the good results. Personnel expenses rose 24% over
third quarter 1999 to CHF 3,863 million but were 11% down on second quarter 2000
in line with slower revenues. Headcount within the Group increased by 355 during
the third quarter to 48,099, mainly due to selective personnel growth at UBS

General and administrative expenses at CHF 1,503 million were slightly higher
(+8%) than in third quarter 1999, mainly due to adverse currency movements and
the impact of the consolidation of Klinik Hirslanden. Depreciation and
amortization rose 12% to CHF 476 million compared to third quarter 1999, with
increases in goodwill amortization due to the acquisitions of Allegis and GAM.

Status of the restructuring provision

Of the CHF 7,300 million merger-related restructuring provision, a total of CHF
6,143 million has been used since the beginning of 1998. CHF 81 million of this
amount was drawn in third quarter 2000, partly to cover vacancy-related premises

With the sale in October of Solothurner Bank to Baloise Insurance, UBS has
complied with one of the last conditions set by the Swiss Competition Commission
in connection with the 1998 merger between Swiss Bank Corporation and Union Bank
of Switzerland. The sale will be booked in the financial accounts in fourth
quarter 2000.

Timetable for Quarterly Reporting 2001

In order to continue our focus on reporting and analyzing the quarterly
performance of UBS's businesses, and to ensure that market-sensitive data about
UBS's results can be released as early as possible, we will issue a fourth
quarter report on 22 February 2001 in addition to the Annual Report, which will
be issued on 15 March 2001 as originally planned.

With effect from first quarter 2001, UBS will release its quarterly results
approximately six weeks after quarter-end, rather than the current eight weeks.
Quarterly reports will be issued on 15 May 2001 for the first quarter, 14 August
2001 for the second quarter and 13 November 2001 for the third quarter. 


Media release available as pdf-download at

Further information on UBS quarterly results available as a pdf-download and
pilot interactive report at
- Financial Report including detailed tables
- Presentation

Cautionary statement regarding forward-looking statement

This communication contains statements that constitute 'forward-looking
statements', including, without limitation, statements relating to the
implementation of strategic initiatives, including the implementation of the
integration of PaineWebber into UBS, and other statements relating to our future
business development and economic performance.
While these forward-looking statements represent our judgments and future
expectations concerning the development of our business, a number of risks,
uncertainties and other important factors could cause actual developments and
results to differ materially from our expectations. 
These factors include, but are not limited to, (1) general market,
macro-economic, governmental and regulatory trends, (2) movements in local and
international securities markets, currency exchange rates and interest rates,
(3) competitive pressures, (4) technological developments, (5) changes in the
financial position or creditworthiness of our customers, obligors and
counterparties, (6) our ability to carry out the integration of PaineWebber into
UBS within the scheduled timeframe and to achieve the anticipated resulting
benefits of the merger, and (7) other key factors that we have indicated could
adversely affect our business and financial performance which are contained in
our past and future filings and reports, including those with the SEC. 
More detailed information about those factors is set forth in documents
furnished by UBS and filings made by UBS or PaineWebber with the SEC. UBS is not
under any obligation to (and expressly disclaims any such obligations to) update
or alter its forward-looking statements whether as a result of new information,
future events, or otherwise. 


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