See www.ubs.com/investorday for more information, slide presentations and a live webcast beginning at 08.15 CET.
At UBS’s 2009 Investor Day in Zurich today, the Group Executive Board will provide an update on the ongoing transformation of the firm, and the strategy and medium-term targets that will characterize UBS’s return to sustainable profitability.

UBS Group Chief Executive Officer, Oswald J. Grübel, said: “Our strategy represents an evolution in terms of our business portfolio but a revolution in terms of the way we will operate. UBS has great businesses and distinctive strengths that we will build on. We combine the world’s leading wealth management firm and the number one full-service bank in Switzerland with a global investment bank and a global asset manager. We have made tremendous progress in increasing our capital and positioning the Group for renewed growth, but work remains to be done.”

UBS intends to be the leading client-focused global bank. It will strengthen its position as the number one bank for high net worth (HNW) and ultra high net worth (UHNW) private clients and remain the number one bank in Switzerland. In addition, it will be a top-tier bank in every growth region, the leading client-focused investment bank and economically profitable in every segment, market and business in which it operates.

“We are building a new UBS: one that performs to the highest standards and behaves with integrity and honesty; one that distinguishes itself not only through the clarity and reliability of the advice and services it provides but in how it manages and executes. I am convinced that changing the way we engage and serve our clients will enable us to achieve the medium-term financial targets to which we are committing ourselves,” Grübel added.

The continuing transformation of UBS and the execution of the business strategies presented to investors will enable UBS to meet specific goals over the medium term (3-5 years). UBS aims to achieve: approximately CHF15 billion of annual profit before tax; a cost-to-income ratio of 65-70%; and a return-on-equity of 15-20%. The objectives will be subject to market movements and regulatory changes.

“The transformation we are undertaking is a fundamental one and it will not happen quickly. I am determined, however, that we build a firm for sustainable profit and not one to focus only on short-term expectations,” Grübel said.

Specific medium-term targets
As the stabilization of the firm continues, the following medium-term financial targets have been set:

Wealth Management & Swiss Bank
• Operating income of CHF ~14.3 billion
• Profit before tax of CHF ~6.5 billion
• Cost-to-income ratio of ~54%

Wealth Management
• Operating income of CHF ~10 billion
• Profit before tax of CHF ~4.6 billion
• Invested assets >CHF 1 trillion
• Gross margin >100 bps
• Net new money growth of ~5% of invested assets p.a.
• ~4,700 client advisers

Swiss Bank
• Operating income of CHF ~4.3 billion
• Profit before tax of CHF ~1.9 billion
• Cost-to-income ratio of ~54%

Investment Bank (normalized)1
• Revenues of CHF ~20 billion
• Profit before tax of CHF ~6 billion
• Cost-to-income ratio of ~70%
• Assets (excluding PRVs) of CHF ~550 billion

Wealth Management Americas
• Profit before tax >CHF 1 billion
• Cost-to-income ratio of between 80-85%

Global Asset Management
• Profit before tax CHF ~1.3 billion
• Operating income >CHF 3 billion
• Cost-to-income ratio of 50-60%

Asia Pacific2
• 66% revenue growth to CHF ~8.5 billion from current levels

Total Balance Sheet Assets (IFRS)
Total Balance Sheet excl PRVs
• CHF ~1.5 trillion

• CHF ~1 trillion


1 Targets are "normalized" by excluding all IB residual risk positions and related costs and restructuring charges, assuming that credit loss expense will equate to the 2004-2009 average (excluding reclassified assets), and applying funding cost assumptions based on 3rd quarter 2009 funding. On this basis the Investment Bank's profit before tax for the nine months ended 30 September 2009 was approximately CHF 2.5 billion.
2 The Investment Bank component of the Asia Pacific targets is based on "normalized" targets

The Group and divisional plans reflect: the different way in which UBS will be managed, the renewed – and improved – focus on performance and the protection of the Group’s reputation. Integration will be a key underlying force of the new UBS and will be enhanced through a systematic approach with explicit structures and incentives

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