Balance sheet

UBS continued to make deliberate reductions to its balance sheet during the first quarter. Total assets were CHF 1,861 billion on 31 March 2009 - a decrease of CHF 153 billion since the prior quarter end. Collateral trading assets and the trading portfolio were reduced by CHF 55 billion in the quarter, with these reductions concentrated in the Investment Bank. Replacement values (RVs) decreased to a similar extent on both sides of the balance sheet, as market movements drove down positive RVs 12%, or CHF 100 billion, to CHF 754 billion.

The underlying reduction of the balance sheet when excluding positive RVs was CHF 90 billion in first quarter 2009, as a CHF 53 billion decline in Swiss franc terms was offset by an increase of CHF 37 billion stemming from the translation effects of the Swiss franc weakening against the British pound, US dollar and euro.

As in the prior quarters, almost all reductions in UBS's total assets originated from reductions to the Investment Bank's balance sheet, which declined by CHF 145 billion in the first quarter to CHF 1,535 billion. Compared with 31 December 2008, the size of the other business divisions' balance sheets remained relatively stable. Total assets for Wealth Management & Swiss Bank were CHF 248 billion, Wealth Management Americas CHF 38 billion and Global Asset Management CHF 21 billion at the end of first quarter 2009.