Balance Sheet

Our total assets stood at CHF 1,734.8 billion on 31 December 2004, up from CHF 1,550.1 billion on 31 December 2003.

The increase in total assets was the net result of growth in the trading portfolio (up CHF 67.6 billion), collateral trading assets (up CHF 43.0 billion), derivatives (up CHF 36.4 billion) and the loan book (up CHF 19.7 billion).

Total liabilities rose due to higher borrowings (up CHF 80.8 billion), derivatives (up 48.9 billion), trading portfolio liabilities (up 27.1 billion)andcollateraltradingliabilities(up CHF 15.0billion).

At CHF 35.0 billion on 31 December 2004, shareholders’ equity declined by CHF 0.3 billion from a year earlier. The decline was due to dividend payments, share repurchases, and the weakening of the US dollar against the Swiss franc, mostly offset by strong retained earnings.

The first-time full consolidation of Motor-Columbus in third quarter 2004 had a small net impact on our balance sheet at 31 December 2004, adding assets of CHF 7.3 billion (0.4% of UBS’s total assets) and liabilities of CHF 6.0 billion. The consolidation also added financial instruments measured at fair value worth CHF 0.7 billion.

Balance Sheet

CHF million	31.12.04	31.12.03	% change

Assets
Cash and balances with central banks	6,036	3,584	68
Due from banks	35,264	31,740	11
Cash collateral on securities borrowed	220,242	213,932	3
Reverse repurchase agreements	357,164	320,499	11
Trading portfolio assets	370,259	341,013	9
Trading portfolio assets pledged as collateral	159,115	120,759	32
Positive replacement values	284,577	248,206	15
Financial instruments designated at fair value	653	0
Loans	232,387	212,679	9
Financial investments	5,049	5,139	(2)
Accrued income and prepaid expenses	5,876	6,218	(6)
Investments in associates	2,427	1,616	50
Property and equipment	8,736	7,683	14
Goodwill and other intangible assets	12,149	11,529	5
Other assets	34,850	25,459	37
Total assets	1,734,784	1,550,056	12


Liabilities
Due to banks	118,901	127,012	(6)
Cash collateral on securities lent	61,545	53,278	16
Repurchase agreements	422,587	415,863	2
Trading portfolio liabilities	171,033	143,957	19
Negative replacement values	303,712	254,768	19
Financial liabilities designated at fair value	65,756	35,286	86
Due to customers	376,083	346,633	8
Accrued expenses and deferred income	14,685	13,673	7
Debt issued	117,828	88,843	33
Other liabilities	42,342	31,360	35
Total liabilities	1,694,472	1,510,673	12
Minority interests	5,334	4,073	31


Shareholders’ equity
Share capital	901	946	(5)
Share premium account	7,348	6,935	6
Net gains / (losses) not recognized in the income statement, net of tax	(1,644)	(983)	(67)
Revaluation reserve from step acquisitions	90	0
Retained earnings	37,455	36,641	2
Equity classified as obligation to purchase own shares	(96)	(49)	(96)
Treasury shares	(9,076)	(8,180)	(11)
Total shareholders’ equity	34,978	35,310	(1)
Total liabilities, minority interests and shareholders’ equity	1,734,784	1,550,056	12

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