<PAGE> 1
[PAINE WEBBER LOGO] CORPORATE COMMUNICATIONS
Paine Webber Group Inc.
1285 Avenue of the Americas, 14th fl.
New York, NY 10019-6028
(212) 713-8391
N E W S R E L E A S E
Contact: David P. Walker FOR IMMEDIATE RELEASE
Paine Webber Group Inc.
212-713-8502
PAINE WEBBER GROUP REPORTS THIRD QUARTER RESULTS
--THIRD QUARTER EARNINGS PER SHARE IS $0.85--
-- MERGER WITH UBS AG CONTINUES ON SCHEDULE --
NEW YORK, October 11, 2000 -- Paine Webber Group Inc. reported today
financial results for the third quarter of 2000. Net income totaled $135.8
million, or $0.85 per diluted share, for the quarter ended September 30, 2000,
compared with net income of $138.2 million, or $0.86 per diluted share in the
corresponding period a year ago. Revenues, including net interest, for the third
quarter of 2000 were $1.443 billion, an increase of 16.6 percent, compared to
$1.237 billion in the third quarter of 1999.
For the nine month period ended September 30, 2000, the firm earned net
income of $439.6 million or $2.83 per diluted share compared to $462.3 million
or $2.88 in the earlier nine month period. Nine month revenues were a record
totaling $4.451 billion, an increase of 14.1 percent from the corresponding nine
month period.
"We are pleased with our third quarter earnings and the successful
completion of the conversion of J. C. Bradford & Co. into PaineWebber, while
simultaneously preparing for our merger with UBS AG," said Donald B. Marron,
PaineWebber's chairman and chief executive officer. "Looking ahead, we are
excited about the expanded capabilities of PaineWebber to deliver global
services and enhanced product offerings to our financial advisors and their
clients through our proposed partnership with UBS."
Paine Webber Group Inc., together with its subsidiaries, serves the
investment and capital needs of a worldwide client base. The firm employs 22,855
people in 383 offices.
This news release and more information about Paine Webber Group Inc.
can be found on our corporate site on the World Wide Web, www.painewebber.com.
-- Two tables to follow --
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PAINE WEBBER GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
For the Quarter Ended September 30, For the Nine Months Ended September 30,
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
REVENUES
Commissions $ 528,948 $ 451,341 $ 1,765,630 $ 1,419,092
Principal Transactions 287,931 235,914 778,648 829,968
Asset Management 314,083 235,712 893,076 666,250
Investment Banking 107,502 134,235 385,329 420,321
Interest 1,167,415 762,205 3,223,170 2,289,636
Other 39,367 40,785 120,940 129,213
------------ ------------ ------------ ------------
TOTAL REVENUES 2,445,246 1,860,192 7,166,793 5,754,480
Interest Expense 1,002,567 623,025 2,715,837 1,854,515
------------ ------------ ------------ ------------
NET REVENUES 1,442,679 1,237,167 4,450,956 3,899,965
------------ ------------ ------------ ------------
NON-INTEREST EXPENSES
Compensation and Benefits 875,012 711,783 2,664,401 2,260,575
Office & Equipment 111,933 89,159 308,220 259,941
Communications 49,408 42,331 140,338 127,179
Business Development 34,172 30,861 114,849 83,262
Brokerage, Clearing & Exchange Fees 16,203 23,391 63,806 71,268
Professional Services 42,215 33,469 142,096 96,318
Other Expenses 93,536 80,188 294,757 240,751
------------ ------------ ------------ ------------
TOTAL NON-INTEREST EXPENSES 1,222,479 1,011,182 3,728,467 3,139,294
------------ ------------ ------------ ------------
INCOME BEFORE INCOME TAXES & MINORITY INTEREST 220,200 225,985 722,489 760,671
Provision for Income Taxes 76,370 79,722 258,682 274,183
------------ ------------ ------------ ------------
INCOME BEFORE MINORITY INTEREST 143,830 146,263 463,807 486,488
Minority Interest 8,061 8,061 24,183 24,183
------------ ------------ ------------ ------------
NET INCOME $ 135,769 $ 138,202 $ 439,624 $ 462,305
============ ============ ============ ============
NET INCOME APPLICABLE TO COMMON SHARES $ 135,769 $ 132,253 $ 439,624 $ 444,458
EARNINGS PER SHARE
BASIC $ 0.92 $ 0.91 $ 3.01 $ 3.05
DILUTED $ 0.85 $ 0.86 $ 2.83 $ 2.88
WEIGHTED AVERAGE COMMON SHARES
BASIC 148,019,000 145,634,000 146,143,000 145,583,000
DILUTED 159,911,000 153,858,000 155,100,000 154,107,000
</TABLE>
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PAINE WEBBER GROUP INC.
QUARTERLY STATISTICAL SUPPLEMENT - OPERATING RESULTS [UNAUDITED]
<TABLE>
<CAPTION>
3Q 00 2Q 00 1Q 00 4Q 99 3Q 99
<S> <C> <C> <C> <C> <C>
ROE Common (Annualized) 16.6% 18.9% * 23.8% 22.9% ** 19.2%
Income Before Taxes & Minority Interest
as a Percentage of Net Revenues 15.3% 17.2% * 18.2% 19.7% 18.3%
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E.P.S. [Diluted] $ 0.85 $ 0.95 * $ 1.16 $ 1.07 ** $ 0.86
Diluted Shares [Millions] 159.9 154.6 152.3 150.7 153.9
Dividends Paid Per Common Share $ 0.12 $ 0.12 $ 0.12 $ 0.11 $ 0.11
Book Value Per Common Share $ 22.77 $ 21.74 $ 20.95 $ 20.04 $ 19.36
Common Shares Outstanding [Millions] 149.0 146.7 145.1 145.6 145.2
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Total Capital [$Billions] $ 8.73 $ 8.80 $ 8.55 $ 8.53 $ 8.36
Total Shareholders' Equity [$Billions] $ 3.39 $ 3.19 $ 3.04 $ 2.92 $ 2.81
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Client Assets [$Billions] $ 490.0 $ 484.3 $ 452.4 $ 423.0 $ 377.2
Assets Under Management [$Billions] $ 75.9 $ 73.1 $ 73.4 $ 68.8 $ 59.5
Money Market Funds 42.2 39.6 39.0 34.5 33.5
Long Term Mutual Funds 16.0 16.3 17.1 17.4 14.2
Institutional and Other 17.7 17.2 17.3 16.9 11.8
Wrap Fee Assets [$Billions] $ 61.2 $ 58.5 $ 53.9 $ 47.0 $ 37.5
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Client Assets on "The Edge" [$Billions]*** $ 225.8 $ 183.7 $ 165.5 $ 140.2 $ 99.4
Households on "The Edge" *** 312,000 248,800 208,300 175,600 124,000
RMA Accounts **** 770,400 752,400 669,500 625,000 591,900
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Recurring Fees (YTD Annualized) $ 1,477 $ 1,435 $ 1,372 $ 1,148 $ 1,124
[$Millions]
Recurring Fees (Incl. Margin Interest)-
As a % of Fixed Costs 110% 115% 109% 102% 100%
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Employees 22,855 23,175 20,008 19,620 18,988
Financial Advisors 8,688 8,554 7,608 7,576 7,249
Sales Offices 383 385 318 315 309
</TABLE>
* Excludes Bradford merger-related costs of $18.8 million after taxes
** Excludes the effect of the unamortized discount of $59.9 million charged
to equity resulting from the redemption of preferred stock
*** Paine Webber's client on-line service
**** Paine Webber and J.C. Bradford central asset accounts
