UBS full-year pre-tax profit CHF 5.5 billion; wealth management businesses' full-year net new money CHF 35.6 billion; end-2011 Basel 2.5 tier 1 ratio 16.0%; dividend of CHF 0.10 to be proposed for 2011.
UBS ended the year with an even stronger capital position and sound liquidity and funding positions, and maintained its standing as one of the world's best capitalized banks. In the fourth quarter, the firm made clear progress towards achieving its strategic goals, reducing Basel III risk-weighted assets (RWA) by an estimated CHF 20 billion and building capital ratios further. UBS's wealth management businesses together delivered quarterly net new money inflows of CHF 5.0 billion, demonstrating clients' continued confidence in the firm amid ongoing market uncertainty. UBS also continued to make progress delivering its previously announced cost reduction program.
The firm's targeted capital structure, which includes 13% in Basel III tier 1 common equity, sends a clear signal about safety and stability. As a clear expression of optimism about the firm's future, UBS reiterates its intention to propose a dividend of CHF 0.10 per share for the financial year 2011 and thereafter implement a progressive capital return program. UBS also intends to issue loss-absorbing capital in 2012 as a step towards meeting the Swiss regulator's requirement that systemically important banks hold up to 19% in total Basel III capital in future.