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EXHIBIT 12
Ratio of Earnings to Fixed Charges
The following table sets forth UBS AG's ratio of earnings to fixed charges, for
the periods indicated. Ratios of earnings to combined fixed charges and
preferred stock dividends requirements are not presented as there were no
preferred share dividends in any of the periods indicated.
SIX MONTHS
YEAR ENDED 31 DECEMBER ENDED 30 JUNE
1997 1998 1999 1999 2000
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IAS(1)
Pre-tax earnings from continuing
operations(2).............................. (851) 3,560 7,709 4,980 5,519
Add: Fixed Charges........................... 17,273 32,958 30,246 13,800 20,061
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PRE-TAX EARNINGS BEFORE FIXED CHARGES........ 16,422 36,518 37,955 18,780 25,580
Fixed charges:
Interest................................... 16,733 32,424 29,695 13,540 19,753
Other(3)................................... 540 534 551 260 308
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TOTAL FIXED CHARGES........................ 17,273 32,958 30,246 13,800 20,061
RATIO OF EARNINGS TO FIXED CHARGES(4)........ 0.95 1.11 1.25 1.36 1.28
US GAAP(1)
Pre-tax earnings from continuing
operations(1).............................. (5,319) 4,216 3,209
Add: Fixed charges:.......................... 26,307 30,211 20,046
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PRE-TAX EARNINGS BEFORE FIXED CHARGES........ 20,988 34,427 23,255
Fixed charges:
Interest................................... 25,773 29,660 19,738
Other(3)................................... 534 551 308
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TOTAL FIXED CHARGES........................ 26,307 30,211 20,046
RATIO OF EARNINGS TO FIXED CHARGES(5)........ 0.80 1.14 1.16
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1. The ratio is provided using both IAS and US GAAP values, as the ratio is
materially different between the two accounting standards. No US GAAP
information is provided for 31 December 1997 and 30 June 1999 as a U.S. GAAP
reconciliation was not required for those periods.
2. Pre-tax earnings from continuing operations includes the elimination of
subsidiary, associate, and minority interest income and the addition of
dividends received from associates.
3. Other fixed charges is the interest component of rental expense.
4. The deficiency in the coverage of fixed charges by earnings before fixed
charges at 31 December 1997 of CHF 851 million is due to restructuring
charges of CHF 7,000 million charged in that period. Without that charge the
ratio would have been 1.36.
5. The deficiency in the coverage of fixed charges by earnings before fixed
charges at 31 December 1998 of CHF 5,319 million is due to restructuring
charges of CHF 3,982 million under US GAAP, as well as CHF 1,706 million of
pre-tax losses from significant financial events (gain on sale of BSI,
provision for WWII litigation, and trading losses on LTCM and GED) charged
for that period. Without those charges the ratio would have been 1.01.