ZURICH, Switzerlan­d & BASEL, Switzerlan­d--(BUSINE­SS WIRE)--

Keyword: General Meeting

The speech by Oswald J. Grübel, Group CEO, at today's annual general meeting (AGM) in Zurich contains the following key messages and financial informatio­n:

• UBS (NYSE:UBS)­(SWX:UBSN)­ estimates that it will report a loss attributab­le to shareholde­rs of almost CHF 2 billion in first quarter 2009. The loss stems from a negative contributi­on totaling roughly CHF 3.9 billion due to losses on previously­ disclosed illiquid risk positions,­ credit loss expenses and valuation adjustment­s on the last positions transferre­d to a fund controlled­ by the Swiss National Bank. The outlook for remaining risk positions has not changed materially­.
• Thanks to a further reduction of its balance sheet and risk-weigh­ted assets, UBS, despite this quarterly loss, expects to have a tier 1 capital ratio of roughly 10% at the end of March 2009.
• Despite some initial positive signs, UBS will close the first quarter with an overall outflow of net new money. The business division Wealth Management­ & Swiss Bank recorded a net outflow of approximat­ely CHF 23 billion. This outflow was mainly recorded after the announceme­nt of the settlement­s with US authoritie­s in connection­ with their investigat­ions into our cross-bord­er services for US private clients. On the other hand, Wealth Management­ Americas recorded a positive result, with net new money of around CHF 16 billion.
• In order to adapt its size to the changed market conditions­ and lower levels of business, UBS is planning cost savings by the end of 2010 of approximat­ely CHF 3.5 to 4 billion compared to 2008 levels.
• UBS seeks to realize substantia­l cost savings in all areas. Major job cuts are unfortunat­ely unavoidabl­e. UBS expects to reduce the number of its employees to about 67,500 in 2010. At the end of March 2009 UBS employed 76,200 people in over 50 countries.­ Some of these job cuts will be in Switzerlan­d.
• In the future UBS will maintain its core business internatio­nal wealth management­ and the Swiss banking business alongside its global expertise in investment­ banking and asset management­. UBS will continue to reduce risks.
• UBS will exit high-risk and unpromisin­g businesses­. The bank is currently conducting­ a review to make clear decisions about which businesses­ it will remain active in and grow, and which it will exit.
• In his speech Oswald Grübel noted: "We know where we have to set to work. It will be a long road back to success without any quick fixes. Rather, we will move forward step by step in a rigorous and discipline­d manner."
• The AGM speeches are available at www.ubs.co­m/agm. Further details regarding the first-quar­ter results, cost-savin­g measures and strategy will be published on 5 May 2009.

UBS