[R]8:00AM New York – Switzerland’s biggest bank reported Group net loss of 4.3 billion francs on U.S. mortgage related positions.[/R]

Quarterly Earnings Review

UBS reported interest income in the fourth ended December 31st rose to 25 billion francs from 24.4 billion francs in the same quarter a year ago.

For the quarter, net profit fell to 12.3 billion francs from a gain of 3.5 billion in the year ago quarter. Basic earnings per share in the period slumped to 6.50 francs from a gain of 1.73 francs a year earlier.

UBS’s total operating income in the quarter fell to 4 billion francs from 12 billion francs in the comparable period last year.

Annual Earnings Review

UBS reported that full year interest income for the year ended December 31st rose to 109 billion francs from 87 billion francs a year ago.

For the year, net profit declined to 3.8 billion francs from 12.7 billion francs profit recorded last year. Resultantly, basic earnings per share slipped to 2.28 francs from a gain of 6.20 francs recorded last year.

Total operating income in the year also declined to 31 billion francs from 47.7 billion francs last year.

Revenues

Global Wealth Management & Banking

Fourth quarter pre-tax profit in the Global Wealth Management & Business rose 5% from the previous quarter to 2.5 billion francs.

For the full year, pre-tax profit in the business increased from 8.1 billion francs recorded in 2006 to 9.4 billion francs.

Wealth Management International & Switzerland

Pretax profit in the fourth quarter 2007 rose 2% from the third quarter to a record 1.6 billion francs, while operating profit slipped 1% from 3.1 billion francs reported in the previous quarter. However, operating profit fell from the third quarter.

Full-year pretax profit in the business increased 21% from 2006 to a record 6.3 billion francs.

Wealth Management in US

In the U.S. business fourth quarter pre-tax profit spiked 37% from the third quarter to 205 million francs, while in U.S. dollar terms profits were up 19% to $180 million as increased market activity translated into higher transactional income.

Non-personnel, which increased 7% in the quarter, however pared gains in the segment.

Operating income in the quarter also rose 5% from the previous quarter in U.S. dollar terms.