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PAINEWEBBER REPORTS SECOND QUARTER EARNINGS AND RECORD HALF

 PAINEWEBBER REPORTS SECOND QUARTER EARNINGS AND RECORD HALF
 NEW YORK, July 14 /PRNewswire/ -- Paine Webber Group Inc. (NYSE: PWJ) today reported a 35 percent gain in second quarter net earnings over the year ago period.
 For the quarter ended June 30, 1992, PaineWebber reported that:
 -- Net earnings were $45,756,000, or 93 cents per share (79 cents fully diluted), compared to net earnings of $33,778,000 or 70 cents per share (58 cents fully diluted), for the quarter ended June 30, 1991.
 -- Revenues, including net interest, increased 14 percent to $592,072,000 compared to revenues of $520,377,000 in the 1991 second quarter.
 -- Compared to 1991's second quarter, revenues from:
 - commission increased 7 percent.
 - principal transactions increased 13 percent
 - investment banking increased 9 percent
 - asset management increased 21 percent.
 PaineWebber's net earnings increased 84 percent to a record first half of $120,081,000 or $2.47 per share ($2.00 fully diluted), compared to net earnings of $65,384,000 or $1.38 per share ($1.13 fully diluted), for the six-month period ended June 30, 1991.
 Revenues, including net interest, rose 26 percent to $1.25 billion in the 1992 first half, compared to $995 million a year ago.
 Donald B. Marron, PaineWebber's chairman and chief executive officer, said "We continue to be pleased with the quality of our earnings. Each of our core businesses contributed strongly to the results while the firm benefited from a favorable market environment, our client focused strategy and careful management of operating costs."
 Marron noted that in the 1992 second quarter:
 -- PaineWebber's Retail Sales and Marketing business continued to gain market share both in revenues and retail brokers. PaineWebber said it added approximately 350 brokers since a year ago, bringing the total to about 4,900. Recurring fees, a reflection of the firm's client asset gathering strategy, increased 21 percent from a year ago, and assets under control reached $97.6 billion, up 19 percent from 1991's second quarter.
 -- Capital Markets posted a very strong quarter with revenues up approximately 34 percent over last year's second quarter reflecting the success of the client-driven strategy both domestically and internationally. This performance was led by increased market share across fixed income product areas, specifically in government, mortgage and corporate debt securities.
 -- Investment Banking businesses had an excellent quarter, benefiting from a strong underwriting environment. In the 1992 second quarter, the firm managed or co-managed.
 - 33 equity offerings raising $3.6 billion
 - 16 corporate debt offerings raising $2.3 billion
 - 255 municipal offerings raising $19.2 billion.
 -- PaineWebber's mutual fund assets (other than money market funds) reached $7.4 billion, up 29 percent from a year ago, as total assets under management increased to $34.2 billion, a 6 percent increase over the 1991 period.
 At June 30, 1992, PaineWebber's total capital grew to $2.0 billion, with total equity capital of $1.1 billion. Book value per share increased to $20.22. In the second quarter, quarterly dividends on common shares were increased by 20 percent to 12 cents per share, and our long-term senior debt was assigned an A+ rating by Thomson BankWatch, Inc.
 Paine Webber 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 13,300 people in 273 offices worldwide.
 PAINE WEBBER GROUP INC.
 Summary of Operations and Earnings Per Share
 (In thousands except share and per share amounts -- unaudited)
 Periods ended Quarter Six months
 June 30, 1992 1991(A) 1992 1991(A)
 REVENUES:
 Commissions $194,711 $182,370 $426,152 $363,451
 Interest 275,223 306,873 540,302 603,330
 Principal Transactions 169,352 150,061 368,872 299,234
 Investment Banking 91,570 83,789 189,552 128,959
 Asset Management 65,138 54,000 127,985 102,168
 Other 20,842 15,394 38,294 29,674
 TOTAL REVENUES 816,836 792,487 1,691,157 1,526,816
 Interest Expense 224,764 272,110 440,356 531,623
 NET REVENUES 592,072 520,377 1,250,801 995,193
 EXPENSES (EX INTEREST):
 Employee Comp. &
 Rel. Exp. 345,827 306,307 717,564 582,685
 Office & Equipment 47,907 44,872 95,419 91,096
 Communications 27,540 29,154 55,733 58,088
 Business Development 17,910 17,888 34,062 30,902
 Professional Services 13,077 12,128 26,918 24,845
 Brkr, Clring, &
 Exch Fees 19,720 15,580 38,549 31,336
 Other 46,291 44,033 93,592 77,202
 TOTAL EXPENSES
 (EX INTEREST) 518,272 469,962 1,061,837 896,154
 EARNINGS BEFORE TAXES 73,800 50,415 188,964 99,039
 TAX PROVISION 28,044 16,637 68,883 33,655
 NET EARNINGS $45,756 $33,778 $120,081 $65,384
 PREFERRED STOCK DIV. $4,470 $5,783 $9,874 $11,566
 EARNINGS APPLICABLE
 TO COMMON SHARES $41,286 $27,995 $110,207 $53,818
 EARNINGS PER SHARE
 PRIMARY $0.93 $0.70 $2.47 $1.38
 FULLY DILUTED $0.79 $0.58 $2.00 $1.13
 WEIGHTED AVG. COMMON SHARES
 PRIMARY 44,422,000 40,114,000 44,591,000 38,957,000
 FULLY DILUTED 60,802,000 60,534,000 61,948,000 60,196,000
 (A) Previously reported amounts have been restated conform to 1992 presentation.
 -0- 7/14/92
 /CONTACT: Beverly T. Spano of PaineWebber Incorporated, 201-902-6775, or Jeffrey Z. Taufield of Kekst and Company, 212-593-2655, for PaineWebber Incorporated/
 (PWJ) CO: Paine Webber Group Inc. ST: New York IN: FIN SU: ERN


SH-HS -- NY015 -- 9007 07/14/92 10:13 EDT
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Date:Jul 14, 1992
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