-Net profit attributable to UBS shareholders of CHF 3,504 million (including net CHF 290 million gain from sale of Motor-Columbus)
-Attributable profit from continuing operations of CHF 3,190 million in first quarter
-Financial businesses contributed CHF 3,048 million to first quarter attributable profit, up 32%
-Diluted EPS of CHF 3.08, up 32% from a year earlier, and ROE of 30.6%, both well above UBS's revised key performance indicators
-Best quarterly performance on record, reflecting firm's strong position in all business lines, impact of rising markets on trading businesses and growing asset base in wealth and asset management businesses
-Net new money was a very strong CHF 48 billion in first quarter, with CHF 33.6 billion inflow from wealth management businesses worldwide.

UBS reports net profit attributable to its shareholders ("attributable profit") of CHF 3,504 million in first quarter 2006. Excluding the operating result from Motor-Columbus and gain from its sale, attributable profit rose 29% in first quarter 2006 from a year earlier.

UBS's industrial holdings, including its private equity portfolio, contributed CHF 456 million, or 13%, to UBS's attributable profit. Its Financial Businesses contributed CHF 3,048 million.

"The strong position we have in our areas of focus allowed us to take full advantage of the positive environment, producing our best quarterly performance ever. Our trading businesses benefited from the healthy rise in financial markets, with the growing asset base in our wealth and asset management businesses driving recurring income higher," said Clive Standish, Chief Financial Officer.

Total operating income for UBS's financial businesses was CHF 12,380 million in first quarter 2006, 26% higher than the same quarter a year earlier. Net fee and commission income, which comprised 50% of overall operating income in first quarter, remained very strong. High brokerage and investment fund fees and a record result in portfolio and other management fees more than offset higher commission expenses – which were up because of increased client activity. Net income from interest margin products rose, mainly due to growing margin lending volumes in the wealth management businesses. Total operating expenses were CHF 8,405 million in first quarter 2006, an increase of 25% from CHF 6,720 million a year earlier.

Personnel expenses were up because of higher salary costs and performance-related accruals, which rose with revenues. General and administrative expenses increased significantly compared with the same period a year earlier, reflecting continued business expansion worldwide and the CHF 112 million in legal costs for the Sumitomo settlement.

Overall performance was further helped by another quarter of credit loss recoveries. The number of personnel in the financial businesses was 70,210 on 31 March 2006, up 641 from 69,569 on 31 December 2005, with staff levels increasing across most businesses. In the Americas, personnel levels rose by 220, in Asia Pacific 470 and in Europe 334. In Switzerland, staff numbers fell by 383, reflecting the transfer of UBS's facility management activities to Edelweiss. Excluding the impact of the management buyout, staff levels in Switzerland would have risen by 267.

Net new money was CHF 48.0 billion in first quarter 2006, up from CHF 35.2 billion a year earlier. Inflows continued to be very strong worldwide. The Wealth Management units recorded inflows of CHF 33.6 billion this quarter, up from CHF 24.1 billion in the same period a year earlier, reflecting high inflows into the domestic European business and further strong contributions from Asian clients. The Swiss retail business recorded a net new money inflow of CHF 1.8 billion. Global Asset Management experienced a high inflow of CHF 12.6 billion. Institutional clients, mainly in Europe and the Americas, contributed to inflows, as did the wholesale intermediary business worldwide.

Outlook
The benign environment seen at the start of the year has continued, and UBS has maintained or further improved its strong position in all businesses. Deal pipelines remain promising, client flows healthy, capital markets active, and macroeconomic fundamentals stable.

"We remain confident in the outlook for UBS, even if conditions change. To ensure we continue to make the most of business opportunities, whatever the environment, we will apply discipline towards both costs and management of all forms of risk, while further investing in our areas of strategic focus," said Clive Standish.