UBS AG announced that it will report a net loss of approximately 4.4 billion Swiss francs ($4 billion) for the full year 2007.

On December 10, 2007, UBS indicated that it may record a net loss for 2007. Today, it quantified that loss at CHF 4.4 billion ($4 billion). For the fourth quarter, the net loss will be approximately CHF 12.5 billion ($11.4 billion).

The firm said that these results reflect weak trading revenues in the Fixed Income, Currencies and Commodities business. FICC numbers will include around US$12 billion (CHF 13.7 billion) in losses on positions related to the US subprime mortgage market and approximately US$2 billion (CHF 2.3 billion) on other positions related to the US residential mortgage market.

UBS will provide further details on its financial performance on February 14, when it publishes its final full-year and fourth quarter 2007 results.

During the fourth quarter, UBS reduced its balance sheet and risk-weighted assets. This process included the sale of some positions at a loss. The firm will now report a BIS Tier 1 ratio of 8.8%, not including proceeds from the mandatory convertible notes, which, if approved at the extraordinary general meeting on February 27, will further strengthen Tier 1 capital.

(1 Swiss franc = 91¢)