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Friday 23 February, 2001


Final Results

22 February 2001

UBS results for full-year 2000: 
Net profit after tax CHF 7,792 million.
UBS reports a record annual result with a net profit for 2000 of CHF 7,792
million. Adjusted for significant financial events, net profit was CHF 8,132
million, representing year-on-year growth of 74%. Also on an adjusted basis and
pre-goodwill, earnings per share was CHF 21.83 and return on equity 24.3%. Group
assets under management increased by CHF 725 billion to CHF 2,469 billion
following the inclusion of PaineWebber. 

Zurich/Basel, 22 February 2001 - UBS achieved a record annual result for 2000
with a net profit of CHF 7,792 million, or CHF 8,132 million once adjusted for
significant financial events. This strong performance reflects the skills and
dedication of UBS staff, the Group's increasingly distinct positioning and the
quality of its earnings across varied market conditions. In a difficult year for
the equity markets, the UBS share price rose 23% over the twelve months.

Pre-goodwill amortization and adjusted for divestments, one-off provisions and
restructuring costs, return on equity for the year increased from 18.2% in 1999
to 24.3%, well in excess of UBS's target range of 15-20% across the cycle. On
the same basis, earnings per share increased 76% from CHF 12.37 to CHF 21.83.
The cost/income ratio for the year was 69.2%, down from 73.3% in 1999. Group
assets under management increased by CHF 725 billion to CHF 2,469 billion,
boosted by the inclusion of PaineWebber, which more than offset the effect of
the falling dollar and weaker equity markets in the latter part of the year. 

Fourth quarter results

Net profit in the fourth quarter was CHF 1,449 million, or CHF 1,634 million
once adjusted for significant financial events. This is 54% higher than in
fourth quarter 1999 but 21% below the previous quarter's level. Excluding the
estimated impact of the merger with PaineWebber, underlying net profit fell 8%
quarter on quarter, an excellent result considering the less favorable market
conditions and the seasonal slowdown.

UBS Switzerland's Private & Corporate Clients business produced another strong
result in the fourth quarter and Private Banking also continued its good
performance relative to 1999 (+22% compared to fourth quarter 1999). UBS Asset
Management's relative investment performance staged an impressive comeback as
its core price/value style outperformed growth-based strategies. UBS Warburg's
Corporate & Institutional Clients business unit more than doubled its pre-tax
profit compared with fourth quarter 1999, with Corporate Finance performing
particularly strongly.

UBS Group Financial Highlights 

                             Quarter ended         % change from   Year ended
CHF million,                                     (1)                         (1)
except where indicated    31.12.00 30.9.00 31.12.99 3Q00 4Q99 31.12.00 31.12.99
Income statement             
key figures                  
Operating income             9,300  8,545   6,789    9    37   36,402   28,425
Operating expenses           7,364  5,842   5,540   26    33   26,203   20,532
Operating profit before tax  1,936  2,703   1,249  (28)   55   10,199    7,893
Net profit                   1,449  2,075   1,069  (30)   36    7,792    6,153
Cost/income ratio (%) (2)     78.4   69.5    81.1                72.2     69.9
Cost/income ratio before
goodwill amortization 
 (%) (2.3)                    75.6   68.0    79.8                70.4     68.7
Per share data (CHF)
Basic earnings per share (6)  3.39   5.15    2.69  (34)   26    19.33    15.20
Basic earnings per share
before goodwill (3.6)         4.02   5.46    2.92  (26)   38    20.99    16.04
Diluted earnings
  per share (6)               3.34   5.09    2.66  (34)   26    19.04    15.07
Diluted earnings per share 
before goodwill (3.6)         3.95   5.40    2.88  (27)   37    20.67    15.90
Return on shareholders'
equity (%)
Return on shareholders' 
equity (4)                                                       21.5     22.4
Return on shareholders'
equity before goodwill (3.4)                                     23.4     23.6

                                                               % change from
As of                               31.12.00  30.9.00 31.12.99 30.9.00 31.12.99

Shareholders' equity                44,833     36,928  30,608     21     46
Market capitalisation              112,666     95,053  92,642     19     22  
BIS capital ratios
Tier 1(%)                             11.7       11.7    10.6
Total BIS (%)                         15.7       15.4    14.5
Total assets under management
(CHF billion)                        2,469      1,746   1,744     41     42
Headcount (fulltime equivalents)(5) 71,076     48,099  49,058     48     45    
Long-term ratings
Moody's, New York                      Aa1      Aa1      Aa1
Fitch/IBCA,London                      AAA      AAA      AAA
Standard & Poor's, New York            AA+      AA+      AA+

Earnings adjusted for significant financial events

                            Quarter ended     % change from      Year-to-date
                                                 (1)                         (1)
CHF million              31.12.00  30.9.00  31.12.99 3Q00 4Q99 31.12.00 31.12.99
Operating income            9,300    8,545     6,777    9  37    36,402   26,587
Operating expenses          7,124    5,842     5,542   22  29    25,763   20,534
Operating profit before tax 2,176    2,703     1,235  (19) 76    10,639    6,053
Net profit                  1,634    2,075     1,059  (21) 54     8,132    4,665

Cost/income ratio before 
goodwill (2.3)               73.0     68.0      79.9               69.2     73.3
Basic earnings per share
before goodwill (CHF) (3.6)  4.45     5.46      2.89  (18) 54     21.83    12.37
Diluted earnings per share
before goodwill (CHF)(3.6)   4.38     5.40      2.86  (19) 53     21.50    12.26

Return on shareholders' equity before goodwill (%) (3.4)           24.3     18.2

(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.  
(2) Operating expenses/operating income before credit loss expense. 
(3) The amortization of goodwill and other intangible assets are excluded from
the calculation.  
(4) Net profit/average shareholders' equity excluding dividends.  
(5) The Group headcount does not include the Klinik Hirslanden AG headcount of
1,839, 1,859 and 1,853 for 31 December 2000, 30 September 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

Paine Webber integration: The integration of PaineWebber has been accomplished
very smoothly. With integration complete, UBS is now focused on leveraging
PaineWebber's skills across all its businesses.

European wealth management strategy: The PaineWebber merger is a transforming
partnership for UBS, not just in the US, but for all its private client
businesses. With the US integration smoothly completed, UBS is focusing on
deploying PaineWebber's skills in its growing European wealth management

In PaineWebber and UBS Private Banking, UBS has scale and excellence in the two
traditions of serving private clients: the brokerage model, and the banking
model. UBS's strategy in Europe is to combine these capabilities to provide a
complete range of wealth management services for its clients. With this
combination UBS can meet all the needs of a sophisticated clientele, whether
banking in their home country or internationally.

UBS's strategy will focus on wealthy clients, with client segmentation based on
the suitability of content and pricing, based on services designed primarily for
those with more than EUR 500,000 of investable assets. UBS will not directly
target the 'mass affluent' segment in Europe.

PaineWebber's top-class abilities in marketing, product management and
innovation, technology, and training will be deployed as the key catalysts for
the European business. UBS will accelerate the positive momentum of its European
domestic private client business, transferring knowledge and resources from the
Private Banking business unit to add to the 170 existing advisors currently
employed by UBS Warburg, and supplementing them with a program of new hires. 

In order to provide a structure able to meet the total needs of each client, UBS
will integrate the leadership of its European private client businesses under a
single management for each region. The European business of UBS Warburg's
International Private Clients business unit will therefore be transferred to the
Private Banking business unit, where it will be co-headed by Richard Sipes, with
22 years of experience in PaineWebber, and Raoul Weil, with 14 years of
experience in UBS Private Banking. 

Open architecture: In December 2000, UBS took an important step forward in the
development of its open architecture distribution strategy with the launch of
UBS Fund Solutions. Clients are offered access to a pre-screened selection of
'best in class' funds from a range of UBS and third-party fund managers. UBS
Switzerland's Investment Center screens all the investment funds sold in
Switzerland, and client advisors then construct portfolios from the selected
funds in line with their clients' investment requirements and risk appetite.

Share buyback program: Given its strong capital generation, UBS intends to
establish a further share buyback program on 5 March 2001, intended for capital
reduction purposes. Shares will be repurchased under a second trading line on
the SWX Swiss Exchange. The Board of Directors has set the maximum value of
shares that could be repurchased under the program at CHF 5 billion.

Par value reduction and share split planned: The Board of Directors is
recommending a distribution in respect of fourth quarter 2000 in the form of the
repayment of CHF 1.60 of the par value per share. Shareholders will also be
asked to approve a 3-for-1 share split. These proposals are subject to new
regulations which are currently passing through the Swiss legislative process
and which are expected to come into force on 1 May 2001. Following the par value
repayment and the share split, both expected to take place on 18 July 2001, the
par value of the UBS share would be CHF 2.80.

Private equity: development of a unique business model: During 2001, UBS will
develop a unique new business model for UBS Capital, its private equity
business, designed to best capture the opportunities available from the growth
of the international private equity market, and the strength of demand for this
asset class.

UBS Capital expects to increase the level of funding sourced from third parties,
reducing its dependence on direct funding from the UBS balance sheet. To support
this move towards wider participation, the new business model will center on the
formation of an autonomous investment management firm known as a fund advisor.
The fund advisor will be 80% owned by UBS Capital's current management and 20%
by UBS, and will adopt a new corporate identity during third quarter 2001. 

The formation of the fund advisor will have a neutral effect on the earnings
stream of UBS. UBS will remain a cornerstone investor in new funds, continuing
to benefit from a strong commitment to this high-return product. The new fund
advisor will remain strongly affiliated with UBS. UBS's private client and
investment banking businesses will retain their close links to the private
equity business. Individual clients will be supplied with a range of proprietary
private equity products, while maintaining complete freedom of choice to select
private equity investments from other providers. UBS Warburg will continue to
benefit from IPO and M&A referrals. 

In tandem with supporting this new business model, UBS will raise its target
overall commitment to private equity investment from CHF 5 billion to CHF 7.5


The year 2000 was outstanding for UBS, and a good year overall for the markets.
As we move into 2001, the prospects for markets and for the international credit
environment are particularly difficult to predict. The recent upswing in the
cycle in Switzerland does, however, afford some protection.

UBS believes that it is well positioned in its credit business thanks to its
avoidance of balance-sheet-led growth, although the bank does not expect to see
the net credit loss write-backs experienced in 2000. UBS Asset Management is
cautiously optimistic about growth as its core price/value investment style
demonstrates its strengths in less bullish markets. UBS Warburg has already
demonstrated the quality and sustainability of its earnings in the less positive
conditions of the second half of 2000.

The biggest opportunity for UBS this year lies in realizing the full
transforming value of PaineWebber, not only in the United States but through
leveraging its marketing, product innovation and client skills to build the best
wealth management firm in the world. 

Results of the business groups 

Reporting by Business Group (1)

CHF million                  UBS  Switzerland       UBS Asset Management
                                           (2)                   (2)
For the quarter ended     31.12.00   31.12.99   31.12.00   31.12.99  31.12.00 
Income                       3,497      3,179        488        356     5,126
Credit loss expense (2)      (178)      (225)          0          0      (83)

Total operating income       3,319      2,954        488        356     5,043

Personnel expenses           1,125      1,152        234        110     2,846
General and administrative 
 expenses                      694        621        138         73     1,206
Depreciation                   164        145         15         10       221
Amortization of goodwill
and other intangible assets     10          5         65         30       180

Total operating expenses     1,993      1,923        452        223     4,453

Business group
performance before tax       1,326      1,031         36        133       590
Tax expense

Net profit before
minority interests
Minority interests

Net profit

                            UBS Warburg      Corporate Center    UBS Group
                               (2)                   (2)                 (2) 
                         31.12.99   31.12.00   31.12.99   31.12.00  31.12.99
For the quarter ended       
Income                      2,883        284        405      9,395    6,823
Credit loss expense  (3)     (93)        166        272       (95)      (46)

Total operating income      2,790        450        677      9,300    6,777

Personnel expenses          1,492        101        356      4,306    3,110
General and administrative
 expenses                     843          7        328      2,045    1,865
Depreciation                  171        107        153        507      479
Amortization of goodwill
and other intangible assets    36         11         17        266       88

Total operating expenses    2,542        226        854      7,124    5,542  

Business group
performance before tax        248        224       (177)     2,176    1,235
Tax expense                                                    497      157

Net profit before
minority interests                                           1,679    1,078  
Minority interests                                            (45)     (19)

Net profit                                                   1,634    1,059

(1) Figures have been adjusted for Significant Financial Events. The quarter
ended 31 December 2000 Personnel, General and administrative expenses and
Depreciation for UBS Warburg have been adjusted for PaineWebber integration
costs of CHF 86 million, CHF 93 million and CHF 79 million respectively. The
following figures have been adjusted for Corporate Center: the quarter ended 31
December 1999 income has been adjusted for income of CHF 12 million relating to
LTCM. The quarter ended 31 December 2000 Personnel expenses have been adjusted
for PaineWebber integration costs of CHF 32 million. The quarter ended 31
December 2000 General and administrative expenses have been adjusted by CHF 50
million for the reduction in the provision relating to the US Global Settlement.
The quarter ended 31 December 1999 Personnel expenses have been adjusted for CHF
456 million for the Pension Fund Accounting Credit. The quarter ended 31
December 1999 General and administrative expenses have been adjusted by CHF 300
million for the UBS/SBC Restructuring Provision and CHF 154 million for the
increase in the provision for the US Global Settlement. 
(2) The 1999 figures have been restated to reflect retroactive changes in
accounting policy and changes in presentation. 
(3) 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 (95) million for the 3 month
period ended 31 December 2000 is as follows: UBS Switzerland CHF 152 million and
UBS Warburg CHF (247) million. The breakdown of the net credit loss expense for
financial reporting purposes of CHF (46) million for the quarter ended 31
December 1999 is as follows: UBS Switzerland CHF (78), UBS Warburg CHF 24
million and Corporate Center CHF 8 million.

UBS Switzerland
UBS's innovative e-banking solutions continued to attract praise in 2000: the
independent internet rating agency BlueSky Ratings TM ranked UBS as the best
online broker in Switzerland, while Forrester Research's recent survey put UBS
among the top two online banks in Europe. The number of e-banking contracts
increased to 555,000 at year end, up from 534,000 at the end of September. 22%
of all payment orders and 14% of all stock exchange transactions at UBS
Switzerland are now executed online. 

Private & Corporate Clients
The Private & Corporate Clients business unit had an excellent fourth quarter,
delivering a pre-tax profit of CHF 511 million (+10% compared to the previous
quarter). Operating income was up 5% compared to the third quarter mainly due to
higher net interest income, while operating expenses increased 2% compared to
the previous quarter, primarily reflecting higher IT equipment replacement

For the full year, the Private & Corporate Clients business unit reported a
record pre-tax profit of CHF 1,993 million (+57% compared with 1999),
demonstrating the strength of UBS's domestic banking franchise. Operating income
increased to CHF 6,684 million (+9% compared to 1999), primarily reflecting
higher fee income and the improved quality of the loan portfolio. Operating
expenses were lower at CHF 4,691 million (-4% compared to 1999) due to a
reduction in headcount, as the benefits of the UBS/SBC merger continue to show

The pre-goodwill cost/income ratio for the year improved from 68% to 63%. Assets
under management were essentially stable for the year and for the quarter,
finishing 2000 at CHF 440 billion (compared with CHF 439 billion at the end of
1999). Net new money for the quarter was CHF -1.3 billion, with net flows being
impacted by the seasonal payment of mortgage interest.

Private Banking
Private Banking's pre-tax profit for the fourth quarter was CHF 815 million (-8%
compared to the previous quarter). Operating income was 1% higher than in the
third quarter despite a less buoyant market environment, while operating
expenses increased 12% mainly due to temporarily higher IT project related costs
and marketing expenditure.

On a full-year basis, Private Banking reported a pre-tax profit of CHF 3,682
million, an increase of 25% over 1999, reflecting strong markets in the first
part of the year and the margin-enhancing benefits of new value-added products.
Operating income was up 21% to CHF 6,714 million while operating expenses
increased to CHF 3,032 million (+16% compared with 1999), driven by headcount
growth and higher performance-related compensation.

The pre-goodwill cost/income ratio rose from 44% in the third quarter to 49%,
but improved from 46% to 44% for the year as a whole. Assets under management
decreased slightly during the fourth quarter to CHF 681 billion due to the fall
of the dollar against the Swiss franc and weaker equity markets. Since the end
of 1999, assets under management have increased by CHF 10 billion. Net new money
remained weak with outflows of CHF 0.7 billion in the fourth quarter.

The strategic focus during the fourth quarter was on opening the product 
architecture for investment funds. With UBS Fund Solutions, UBS now offers its
clients 'best in class' funds from leading outside providers for an all-in
'wrap' fee. Global Asset Management's (GAM) funds and discretionary portfolio
management service are also now available to Private Banking clients. 

UBS Asset Management
As announced on Tuesday, 20 February 2001, Mitchell Hutchins, PaineWebber's
asset management arm, is joining the UBS Asset Management business group and
being renamed Brinson Advisors. 

Institutional Asset Management
Institutional Asset Management delivered the best relative annual investment
performance in its history, as its core price/value investment style
demonstrated its strengths in 2000's less bullish markets. Its UK business,
Phillips & Drew, was ranked the top-performing pension fund manager in Britain
for the year 2000 by Combined Actuarial Performance Services (CAPS), the leading
UK performance measurement consultancy. 

Institutional Asset Management's pre-tax profit was CHF 31 million for the
fourth quarter, the drop of 47% from third quarter 2000 being primarily driven
by investment in strategic initiatives. 

Operating income was slightly lower at CHF 327 million (-3% compared to the
third quarter), while operating expenses increased CHF 18 million to CHF 296
million, principally as a result of expansion in Europe and Asia and investment
in new projects.

On a full-year basis, pre-tax earnings were CHF 227 million (-30% compared to
1999). Operating income increased to CHF 1,301 million (+18%) as a result of the
launch of the O'Connor business and the acquisition of Allegis. Operating
expenses rose to CHF 1,074 million, reflecting higher performance-related
personnel expenses and goodwill amortization relating to Allegis. 

Over the full year, assets under management decreased 14% to CHF 496 billion,
with most of the decline due to losses of client mandates in the early part of
the year. The drop of CHF 32 billion in the fourth quarter was primarily
attributable to the weakness of the US dollar relative to the Swiss franc and
generally falling equity markets. Net outflows moderated further in the last
three months of the year and at CHF 4.9 billion were 46% less than in the third

Investment Funds/GAM
The Investment Funds/GAM business unit reported a pre-tax profit of CHF 5
million for the fourth quarter. Operating income increased to CHF 161 million
(+3%) from the third quarter mainly as a result of the acquisitions of Fondvest
in Switzerland and the Fortune Securities & Investment Trust Company in Taiwan.
Operating expenses were up 19% to CHF 156 million, primarily in connection with
the roll-out of [email protected], a distribution platform for fund-based investment
solutions, and the two acquisitions referred to above. 

Pre-tax profit for the full year was CHF 95 million. Operating income increased
to CHF 652 million due to the acquisition of GAM (+141% compared to 1999).
Operating expenses were also higher at CHF 557 million (+253%), reflecting
spending on third-party distribution initiatives and the GAM acquisition,
including associated goodwill amortization.

Assets under management totaled CHF 219 billion at year end. This represents a
decline of 4% since the end of September 2000, and 3% since the end of December
1999. Net new money was CHF 2.8 billion during the fourth quarter, reflecting
the funds' improved relative performance, and CHF 4.4 billion for the year as

UBS Warburg
UBS Warburg's business group results include CHF 138 million of goodwill
amortization and CHF 132 million of goodwill funding costs relating to the
merger with PaineWebber. 

Corporate & Institutional Clients
The Corporate & Institutional Clients business unit again delivered strong
earnings growth this quarter, with a pre-tax profit of CHF 948 million (+167%
compared to fourth quarter 1999). 

Equities revenues during fourth quarter 2000 were somewhat lower than in the
third quarter, reflecting seasonal trends and poorer market conditions, but
remained strong compared to fourth quarter 1999. Corporate Finance produced an
excellent performance driven by continued strong M&A performance including
several landmark deals. Personnel expenses increased to CHF 1,729 million in the
fourth quarter (+26% compared to fourth quarter 1999). 

Pre-tax profits for the full year were CHF 5,023 million, representing growth of
134%. Equities revenues performed extremely well over the year (+82% compared
with 1999). In Fixed Income, the Government & Derivatives and Principal Finance
groups delivered excellent results on a full-year basis while Corporate Finance
also experienced very strong growth in 2000. The pre-goodwill cost/income ratio
improved significantly during the year, dropping from 79% to 70%. 

Market risk utilization, as measured by average Value-at-Risk (VaR), decreased
from CHF 238 million at the end of September to CHF 216 million at the end of

In 2000, UBS Warburg was ranked 6th globally in completed M&A transactions, up
from 9th place in 1999. In fourth quarter, it acted as financial advisor for
Diageo's bid with Pernod Ricard for Seagram's spirit business, Unilever's
acquisition of Bestfoods and for the sale of Nabisco to Philip Morris. UBS
Warburg continued to play a leading role in the international fixed income
markets, ranking 1st for Eurobonds and 5th in the All International Bonds
sector. In the international primary markets, the business improved its ranking
in International Equity New Issues from 9th at the end of September 1999 to 8th
for the full year. UBS Warburg was the bookrunner on the Deutsche Post Worldnet
IPO, the first IPO of a national postal operator. 

During fourth quarter 2000, the former capital markets businesses of PaineWebber
with their staff of 1,623 were integrated into the Corporate & Institutional
Clients unit. In addition to expanding UBS Warburg's capabilities in a number of
areas, the integration of PaineWebber has also positioned UBS Warburg more
strongly as an employer of choice in the critical US market, employing 27,607
people, or 39% of the Group's worldwide total.

UBS Capital
UBS Capital, the private equity arm of UBS Warburg, reported a pre-tax profit of
CHF 56 million in the fourth quarter. Operating income increased 126% to CHF 138
million compared to fourth quarter 1999. Operating expenses rose to CHF 82
million (+91% compared to fourth quarter 1999) primarily driven by bonus
payments accrued as investments are successfully exited. The book value of UBS
Capital's private equity investments grew from CHF 4.5 billion at the end of
September to CHF 5.5 billion. The fair value of the portfolio rose from CHF 4.2
billion at the end of 1999 to CHF 6.9 billion. This equates to unrealized gains
of CHF 1.3 billion. Value creation in the second half of the year, including
increases in unrealized gains and net realized gains, was CHF 0.2 billion,
sustaining UBS Capital's impressive record of value creation.

US Private Clients
Because the merger between UBS Warburg and PaineWebber took place in November
2000, the results shown for the US Private Clients business unit relate only to
the final two months of 2000. They reflect the performance of the former
PaineWebber organization, including Mitchell Hutchins, but without the
PaineWebber capital markets businesses. 

US Private Clients reported a pre-tax loss of CHF 19 million for the last two
months of 2000. Adjusted for retention payments, profit was CHF 98 million. At
CHF 1,225 million, operating revenues were running only slightly lower (-2%)
than in PaineWebber's individual clients business before the merger, despite the
extended seasonal lull due to the uncertainty surrounding the US presidential
election. Personnel expenses were CHF 955 million, including CHF 117 million of
retention payments. Client assets totaled CHF 794 billion, a drop of CHF 96
billion since 3 November, reflecting the weakness of the dollar relative to the
Swiss franc and the continuing decline of equity markets. Net new money was CHF
8.3 billion, with new assets gathered at a faster rate than in the pre-merger

In fourth quarter 2000, PaineWebber announced a major initiative to
significantly expand its already successful stock option finance business
through the formation of Corporate Employee Financial Services (CEFS). Through
managing and executing employees' stock options, CEFS gives PaineWebber the
opportunity to secure them as long-term investors, managing the wealth their
options have generated. CEFS' goal is to capture a larger share of this major
market segment in the United States. PaineWebber already provides stock option
services to well-known companies such as Cisco, Enron, General Electric and
Texas Instruments. 

International Private Clients
The International Private Clients business unit's performance continued to
improve with losses reduced to CHF 35 million in the fourth quarter (down from a
CHF 47 million loss in third quarter).  

Group Financial Information 

UBS Group Income Statement
                           Quarter ended     % change from        Year ended
                                                 (1)                        (1)
CHF million               31.12.00 30.9.00  31.12.99 3Q00 4Q99 31.12.00 31.12.99
Operating income            
Interest income             15,186  12,480    9,958    22   53   51,745   35,604
Interest expense           (13,213)(10,649)  (8,215)  (24) (61) (43,615)(29,695)
Net interest income          1,973   1,831    1,743     8   13    8,130    5,909
Credit loss expense/      
recovery                       (95)    142     (46)     -    -      130    (956)

Net interest income after
credit loss expense/recovery 1,878   1,973    1,697    (5)  11    8,260    4,953
Net fee and commission
income                       5,003   3,865    3,357    29   49   16,703   12,607
Net trading income           1,916   2,368    1,162   (19)  65    9,953    7,719
Net gains from disposal
of associates and 
subsidiaries                    60       0       49         22       83    1,821
Other income                   443     339      524    31  (15)   1,403    1,325

Total operating income       9,300   8,545    6,789     9   37   36,402   28,425

Operating expenses
Personnel                    4,424   3,863    2,654    15   67   17,163   12,577
General and administrative   2,088   1,503    2,319    39  (10)   6,765    6,098
Depreciation and          
amortization                   852     476      567    79   50    2,275    1,857
Total operating expenses     7,364   5,842    5,540    26   33   26,203   20,532
Operating profit before
tax and minority interests   1,936   2,703    1,249   (28)  55   10,199    7,893
Tax expense                    442     621      161   (29) 175    2,320    1,686
Net profit before minority
interests                    1,494   2,082    1,088   (28)  37    7,879    6,207
Minority interests             (45)    (7)      (19) (543)(137)    (87)     (54)
Net profit                   1,449   2,075    1,069   (30)  36    7,792    6,153

(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 37% compared to fourth quarter 1999 to CHF
9,300 million. For the full year, it was CHF 36,402 million (+28% compared to

Net interest income before credit loss expense rose to CHF 1,973 million in the
fourth quarter. The growth of 13% compared to fourth quarter 1999 reflects
higher trading-related income. On a full-year basis, net interest income
increased 38% to CHF 8,130 million. 

Aggregate credit loss expense for fourth quarter 2000 amounted to CHF 95 million
(CHF 46 million in fourth quarter 1999). While the strength of the Swiss economy
in 2000 enabled UBS Switzerland to realize a further writeback in credit loss
expense, the deteriorating trend in international credit markets required
additional loan loss provisions to be taken against UBS Warburg's loan
portfolio. UBS's strategy of actively reducing its international credit
exposures over the last two years has positioned it relatively well for the less
positive outlook in the international credit markets. The improved quality of
the overall loan portfolio is reflected in the drop of CHF 677 million (-6%) in
non-performing loans during the fourth quarter to CHF 10.5 billion. This
represents 3.6% of the overall loan book of CHF 287.1 billion. The portfolio mix
improved with the addition of PaineWebber's mostly secured private client loan

Net fee and commission income increased to a record level of CHF 5,003 million
during fourth quarter 2000 (+49% compared to fourth quarter 1999). CHF 949
million of this growth came from PaineWebber. The remainder chiefly reflects
strong performance in Corporate Finance and the contribution from two other new
businesses, O'Connor, created in June 2000, and Global Asset Management (GAM),
purchased at the end of 1999. The full-year performance of CHF 16,703 million
(+32% compared to 1999) reflects these effects as well as the very high level of
brokerage fees in the exuberant trading markets at the start of the year.

Net trading income was CHF 1,916 million in the fourth quarter, up 65% compared
to the same quarter last year, when performance was depressed by the cautious
trading strategies employed as Year 2000 approached. Over the whole year, net
trading income rose to CHF 9,953 million (+29% compared to 1999), driven by
increased global market activity and the continued strength of UBS Warburg's
secondary client franchise.

Total operating expenses of CHF 7,364 million for the fourth quarter (+33%
compared to fourth quarter 1999 and +26% compared to third quarter 2000) include
PaineWebber expenses for the last two months of the year. Excluding the impact
of PaineWebber, costs fell slightly from the third quarter due to lower
performance-related compensation. Full-year operating expenses were CHF 26,203
million. The growth of 28% over 1999 is principally due to higher personnel
expenses, which rose to CHF 17,163 million for the full year (+36% compared with
1999). This increase reflects bonus compensation in line with the excellent
results. Fourth-quarter personnel expenses totaled CHF 4,424 million and
included PaineWebber personnel costs as well as CHF 128 million in PaineWebber
staff retention payments. Headcount within the Group rose by 22,977 in the last
two months of the year to 71,076, mainly as a result of the merger with

General and administrative expenses were CHF 2,088 million (-10% compared with
fourth quarter 1999). Fourth quarter 2000 includes PaineWebber's expenses for
the first time, the PaineWebber integration costs and the effect of industry
contributions to the US Global Settlement Fund. On a full-year basis, general
and administrative expenses rose 11% to CHF 6,765 million. 

Depreciation and amortization increased 79% during fourth quarter 2000 to CHF
852 million. Depreciation of goodwill and intangibles resulting from the
PaineWebber merger accounted for CHF 138 million and the depreciation of
PaineWebber property and equipment for another CHF 44 million.

Goodwill and restructuring costs associated with the PaineWebber merger
The amount of goodwill and intangible assets resulting from the merger with
PaineWebber was finalized at CHF 17.5 billion (USD 10 billion) and will be
amortized over 20 years. UBS has incurred a total of CHF 746 million (USD 431
million) in restructuring costs as a result of the merger. In accordance with
International Accounting Standards, CHF 456 million of these costs have been
accounted for as a liability of PaineWebber and added to the goodwill amount for
the transaction. The remaining CHF 290 million has been charged in fourth
quarter 2000 and treated as a significant financial event.  


Further information on UBS quarterly and full year results are available as a
pdf-download at

-  4Q2000 Report (as .pdf and interactive version) 
-  4Q2000 Results Presentation 

Webcast: The results presentation will be webcast live via at the
following time on Thursday, 22 February:

-  0915 CET 
-  0815 GMT 
-  0315 EST 

Webcast playback will be available from 1400 CET on Thursday, 22 February. 

Cautionary statement regarding forward-looking statements
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
European wealth management strategy and the implementation of a new business
model for the private equity business, 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) legislative developments., 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 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. 

Indicative USD conversions - Adjusted results

Key results (1)

                         4Q00               3Q00                 12M00       
                  CHF     Approx. USD    CHF     Approx.USD   CHF    Approx.USD
Net profit       1,634m      967m (3)  2,075m    1,243m (2)  8,132m  4,812m(3)
Total operating  
Income           9,300m    5,503m (3)  8,545m    5,117m (2)
Basic EPS 
before goodwill    4.45      2.63 (3)   5.46      3.27  (2)
Diulted EPS 
before goodwill    4.38      2.59 (3)   5.40      3.23  (2)

                      31 Dec 00               30 Sept 00
Shareholder's    44.8bn     27.3bn  (5)  36.9bn      21.3bn  (4)
Assets under    2,469bn    1,505bn  (5)  1,746bn     1,009bn (4)
(Client Assets)

NOTES:                                                         CHF/USD

1. All figures adjusted for significant financial events
2. Based on 9 month average USD rate as at 30.09.00             1.67
3. Based on 12 month average USD rate as at 31.12.00            1.69
4. Based on spot USD rate as at 30.09.00                        1.73
5. Based on spot USD rate as at 31.12.00                        1.64


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