12:00PM New York - Europe largest bank UBS reported a loss of 11.5 billion francs in the first quarter 2008 from a profit of 3.3 billion francs in the same period a year earlier.

Quarterly Earnings Review

UBS reported that net new money outflows in the first quarter ended March 31st was 12.8 billion francs compared with net new inflows of 52.8 billion francs in the comparable quarter a year ago.

For the quarter, the bank realised a loss of 11.5 billion francs compared with a profit of 3.3 billion francs a year ago. Diluted earnings per share were a negative 5.63 francs compared with positive 1.43 francs in first quarter 2007.

In the quarter under review, UBS ’s return on equity was at negative 180.0% compared with positive 26.8% in first quarter 2007 after substantial losses in the Investment Bank related to the US mortgage market.

Segment Review

Global Wealth Management & Business Banking

In the first quarter 2008 pre-tax profit for Global Wealth Management & Business Banking declined 13% from the previous quarter to 2.15 billion francs.

Also pre-tax profit in Wealth Management International & Switzerland tumbled 13% to 1.42 billion from the previous quarter, while total operating income fell by 7% from 3.29 billion in the fourth quarter 2007 on reduced recurring and non-recurring income.

Recurring income was negatively impacted by a lower asset base and non-recurring income was affected by lower client activity and lower interest income.

In the Wealth Management US division pre-tax profit slumped 12% to 183 million francs in the quarter under review and fell 2% in U.S. dollar terms to US179 million as performance was adversely affected by the turmoil in the credit markets that precipitated lower transaction volume.

Operating profit in the segment also plunged 9% from the fourth quarter 2007 as the US dollar slid against the Swiss franc during the first quarter. Recurring income and non-recurring income declined as well.

Also personnel expenses decreased by 5% in US dollar terms and increased by 6% from fourth quarter 2007.

Business Banking Switzerland reported pre-tax profit fell 10% to 540 million francs from the previous quarter in the first three months to March 31.

Total operating income tumbled by 5% compared with the fourth quarter, as both interest and non-interest income declined. Despite increased personnel expenses, operating expenses fell by 1% mainly due to a decline in general and administrative expenses.

Global Asset Management

In the Global Asset Management''s segment pre-tax profit for first quarter 2008 dropped 32% to 330 million francs from the previous quarter as performance fees and management fees across the business were lower than those recorded in fourth quarter 2007 due to financial market turmoil and a stronger Swiss franc.

As performance fees fell operating income tumbled by 27% from the previous quarter as well.

In addition, institutional revenues declined as a result of lower performance fees and lower management fees, partly offset by the inclusion of Caisse Centrale de Réescompte.

Total operating expenses in the quarter fell 22% from fourth quarter 2007 and personnel expenses edged down from 372 million francs from the previous quarter to 303 million in first quarter 2008.