Balance sheet

UBS’s balance sheet was CHF 1,674 billion on 30 June 2004, up from CHF 1,670 billion on 31 March 2004. The increase in total assets was the net result of increases in reverse repurchase agreements (repos), trading assets and lending activities, mainly in the “due from banks” category but also, to a lesser extent, in the “loans to customers” category. This growth was partially offset by a decline in value of derivatives and a weakening of major currencies against the Swiss franc, which reduced the level of total assets by CHF 29.5 billion. Total liabilities rose to fund the increased trading activities. The strengthening of the Swiss franc against major currencies decreased total liabilities by CHF 27.4 billion.

Lending and borrowing

Our loans to customers position increased to CHF 226.6 billion on 30 June 2004, up by CHF 4.1 billion from its level on 31 March 2004 as a result of higher levels of secured lending, mainly in our wealth management businesses, both domestic and international. Our “due from banks” position was CHF 38.9 billion on 30 June 2004, up CHF 9.0 billion from 31 March 2004, as we invested more in short-term instruments in anticipation of widespread increases in interest rates.

Repo and securities borrowing/ lending

Cash collateral on securities borrowed and reverse repurchase agreements were CHF 596.3 billion on 30 June 2004, up by 3.9% from 31 March 2004. The increase was primarily driven by our repo matched book (a portfolio comprised of assets and liabilities with equal maturities and equal value, so that market risks cancel each other out), mainly in government repos and to a lesser extent in mortgage repos.

Trading portfolio

From end-March to end-June 2004, trading assets grew by CHF 9.2 billion. The increase was due to rises in fixed income instruments, collateralized mortgage obligations, structured equity products, traded loans and precious metal holdings. Those increases were partially offset by a reduction in mortgage-backed securities.

Top