UBS is one of the world's leading wealth managers with over 140 years of experience managing wealth globally. In 2009, UBS transformed and improved financial performance, with all divisions returning to profitability in the fourth quarter. UBS reduced risks on its balance sheet, lowered costs, and increased capital ratios to strengthen its financial position.

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The strength of UBS
UBS is one of the world’s leading wealth managers. Enhanced global performance
For more than 140 years—in major financial centers Improved results in the Americas division were
around the world—UBS has been managing wealth consistent with those of the global firm: All UBS AG
for private clients and demonstrating strength operating divisions returned to profitability in the
through ever-changing economic climates. Today, fourth quarter of 2009. “We are delivering on our
few firms rival our distinctive combination of wealth plan for a new UBS,” noted Oswald Grübel, CEO,
and asset management and investment banking, or UBS AG. “We are optimistic that the effects of the
our global footprint and infrastructure. progress made in improving efficiency, reducing risk,
and rebuilding and refocusing businesses will be felt
Positioned for growth in the coming quarters.”
2009 was a year of transformation, during which
Wealth Management Americas (WMA) laid the The quarter clearly showed the firm’s renewed
foundation for sustained profitability. financial strength, greater efficiency and enhanced
cost control. Most notably, UBS AG reported
Under the leadership of CEO Robert McCann and substantial reductions in both its risk exposure and
a senior management team of highly regarded its balance sheet:
industry veterans, we are streamlining our operations
to become a more nimble organization, one that
Raised capital Lowered risk Reduced
responds quickly to clients and market opportunities.
ratio exposure fixed costs
“We are committed to being strong, smart and fast,”
in the words of Mr. McCann. BIS Tier 1 capital Assets1 were Cost and head
ratio climbed down 21% count reductions
In the fourth quarter, WMA returned to profitability, to 15.4%, year on year set for year-end
recording a 62% increase in pretax profit that from 11.0% to $884 billion. 2010 were largely
on 12/31/08. achieved in 2009.
totaled $171 million on operating income of $1,340
Total risk
million. These results reflect a nonrecurring interest
FINMA leverage weighted assets Fixed costs were
income credit, increased fee income and lower ratio rose to were reduced reduced by more
personnel expenses. 3.93% from by 32% year than $3 billion.
2.45% a year on year, to
Wealth Management Americas ago. $199 billion.
Steadily improving profitability
(USD millions) 1
Total assets excluding positive replacement values of $406 billion and
$821 billion on 12/31/09 and 12/31/08, respectively.
$1,500 $171
$106
$1,250 $1,354 $1,315 $1,324 $1,340 Restored profitability in every division
$1,000
In 4Q09, UBS AG reported net profits of $1,159
$750 million, with all divisions achieving positive results:
$500
• Wealth Management & Swiss Bank profits rose
$250 40% to $1,066 million, mainly due to lower
personnel expenses and other cost reduction
$0
($34) ($213) measures.
$-250
1Q09 2Q09 3Q09 4Q09
• Global Asset Management’s pretax profits
Pretax results Operating income
increased to $273 million from $125 million in the
All 4Q09 figures have been converted from CHF to USD using the spot third quarter, with lower personnel expenses more
currency exchange rate of CHF/USD of 1.04.
than offsetting lower revenues during the period.

2. • Investment Bank quarterly pretax profit totaled Our current long-term credit ratings are among the
$285 million, compared with a pretax loss of highest in the industry:
$1,317 million in the third quarter, which ended
September 30. Credit ratings (as of February 9, 2010)
One of the world’s strongest and Moody’s
best-capitalized banks long-term S&P long-term
rating/outlook rating/outlook
As a result of the continued reduction of risk-
weighted assets, our BIS Tier 1 capital ratio totaled UBS Aa3 A+/S
15.4% at the end of 2009, up from 11% a Credit Suisse Aa2/N A/S
year earlier. JPMorgan Aa1 AA-
Wells Fargo A1/S AA-/N
Tier 1 capital ratio, 4Q 2009
Goldman Sachs A1/N A/N
20
Bank of America A2/N A/N
Morgan Stanley A2/N A/N
16.3%
15 15.4% 15.4% 15.0%
12.6%
11.7%
10 11.1%
10.4%
5
0
CS UBS DB MS/SB GS Citi JPM BoA/ML
European firms U.S. firms
UBS Financial Services Inc.
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UBS Financial Services Inc. and UBS International Inc. are subsidiaries of UBS AG.
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