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PAINEWEBBER REPORTS RECORD THIRD-QUARTER EARNINGS; THIRD QUARTER NET EARNINGS UP 35 PERCENT

 PAINEWEBBER REPORTS RECORD THIRD-QUARTER EARNINGS;
 THIRD QUARTER NET EARNINGS UP 35 PERCENT
 NEW YORK, Oct. 13 /PRNewswire/ -- PaineWebber Group Inc. (NYSE: PWJ) today reported a 35 percent gain in net earnings for the third quarter of 1992 over the third quarter of 1991.
 For the quarter ended Sept. 30, 1992, PaineWebber reported that:
 -- Net earnings were $51,672,000, or $1.06 per share ($0.87 fully diluted), compared to net earnings of $38,360,000, or $0.81 per share ($0.64 fully diluted), for the quarter ended Sept. 30, 1991.
 -- Revenues, including net interest, increased 18 percent to $625,818,000, compared to revenues of $529,166,000 in the 1991 third quarter.
 PaineWebber's net earnings for year to date 1992 increased 66 percent to a record for a nine-month period of $171,753,000 or $3.52 per share ($2.85 fully diluted), compared to net earnings of $103,744,000, or $2.19 per share ($1.77 fully diluted), for the nine-month period ended Sept. 30, 1991.
 Revenues, including net interest, rose 23 percent to $1.88 billion for the first nine months of 1992, compared to $1.52 billion a year ago.
 Donald B. Marron, PaineWebber's chairman and chief executive officer, said, "PaineWebber's third-quarter results reflect the continuing success of our strategies. Our results are well diversified with balanced contributions from our largest divisions, retail and capital markets, and strong improvements from these businesses over the results of both the third quarter of 1991 and the second quarter of 1992."
 Mr. Marron noted that in the 1992 third quarter:
 -- PaineWebber's retail sales and marketing business posted strong performance gains over the 1991 third quarter and the 1992 second quarter. These improvements reflect the investment executives' ability to offer diverse products suited to investor needs in the current uncertain environment. Also, approximately 400 brokers were added over the past year, bringing the total to more than 5,000. Recurring fees increased 23 percent from a year ago, and assets under control reached $102.7 billion, up 17 percent from 1991's third quarter.
 -- Capital markets' businesses, both domestic and international, posted another very strong quarter as revenues were up approximately 35 percent, and profits were up approximately 50 percent over last year's third quarter, reflecting the continued success of their client-driven strategy. This performance was led by fixed-income product areas, specifically in mortgage and government securities.
 -- The third quarter 1992 investment banking revenue gain over the third quarter 1991 was driven by revenues from increased corporate securities issuance. In the 1992 third quarter, the firm managed or co- managed:
 -- 22 equity offerings raising $4.8 billion
 -- 35 corporate debt offerings raising $8 billion
 -- 180 municipal offerings raising $24.1 billion
 During the quarter, PaineWebber lead managed the $1.1 billion common stock offering for GTE Corp., the largest industrial underwriting in the firm's history.
 -- PaineWebber's mutual fund assets (other than money market funds) increased by 32 percent from the same quarter a year ago, as total assets under management increased to $35.3 billion.
 At Sept. 30, 1992, PaineWebber's total capital grew to $2.33 billion, with total equity capital of $1.13 billion. Book value per share increased to $21.11. In the third quarter, senior debt was upgraded to an "A3" rating by Moody's Investors Service.
 PaineWebber Group, Inc., with its subsidiaries PaineWebber Incorporated and PaineWebber International, serves the investment and capital needs of a worldwide client base. The firm employs approximately 13,500 people in 274 offices worldwide.
 PAINEWEBBER GROUP INC.
 Summary of Operations and Earnings Per Share
 (In thousands, except share and per-share amounts)
 (Unaudited)
 Periods ended Quarter Nine months
 Sept. 30 1992 1991(A) 1992 1991(A)
 Revenues:
 Commissions $189,892 $169,525 $616,044 $532,976
 Interest 265,842 321,170 806,144 924,500
 Principal transactions 189,561 182,985 558,433 482,219
 Investment banking 105,074 65,478 294,626 194,437
 Asset management 68,176 56,743 196,161 158,911
 Other 17,992 15,006 56,286 44,680
 Total revenues 836,537 810,907 2,527,694 2,337,723
 Interest expense 210,719 281,741 651,075 813,364
 Net revenues 625,818 529,166 1,876,619 1,524,359
 Expenses (excluding interest):
 Employee compensation
 & related exp. 367,710 312,032 1,085,274 894,717
 Office & equipment 48,975 47,197 144,394 138,293
 Communications 28,199 27,898 83,932 85,986
 Business development 16,420 15,473 50,482 46,375
 Professional services 15,502 12,467 42,420 37,312
 Brokerage, clearing
 & exchange fees 18,950 15,676 57,499 47,012
 Other 46,720 43,479 140,312 120,681
 Total expenses
 (excluding interest) 542,476 474,222 1,604,313 1,370,376
 Earnings before taxes 83,342 54,944 272,306 153,983
 Tax provision 31,670 16,584 100,553 50,239
 Net earnings 51,672 38,360 171,753 103,744
 Preferred stock dividend
 requirements 4,470 5,783 14,344 17,349
 Earnings applicable
 to common shares 47,202 32,577 157,409 86,395
 Earnings per share:
 Primary $1.06 $0.81 $3.52 $2.19
 Fully diluted 0.87 0.64 2.85 1.77
 Weighted average common shares:
 Primary 44,711,000 40,276,000 44,685,000 39,394,000
 Fully diluted 60,695,000 61,407,000 61,793,000 60,836,000
 (A) -- Previously reported amounts have been restated to conform to 1992 presentation.
 -0- 10/13/92
 /CONTACT: Beverly T. Spano of PaineWebber Incorporated, 201-902-6775, or Jeffrey Z. Taufield of Kekst and Company, 212-593-2655, for PaineWebber Group/
 (PWJ) CO: PaineWebber Group Inc. ST: New York IN: FIN SU: ERN


CK-OS -- NY018 -- 9234 10/13/92 10:48 EDT
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Date:Oct 13, 1992
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