Balance sheet

UBS’s total assets stood at CHF 1,745 billion on 30 September 2004, up from CHF 1,674 billion on 30 June 2004. The CHF 70.8 billion increase was prompted by higher trading assets including derivatives (which were up CHF 47 billion), reverse repurchase agreements (up CHF 44.6 billion) as well as loans to customers (up CHF 8.8 billion). The increases were partially offset by a drop in the value of cash collateral on securities borrowed (down CHF 31.5 billion). A number of major currencies weakened against the Swiss franc, reducing the level of total assets by CHF 3.9 billion.

Motor-Columbus

The first-time full consolidation of Motor- Columbus had a small net impact on our balance sheet, adding assets of CHF 6.9 billion (or 0.4% of UBS’s total assets) and total liabilities of CHF 5.0 billion. The consolidation also added financial instruments measured at fair value that are worth CHF 0.6 billion. In summary, our balance sheet positions were affected as follows:

The minority interests shown above reflects minority interests in Motor-Columbus plus minority interests in Atel. Shareholders’ equity on our balance sheet rose as a result of the first-time consolidation because of the revaluation of our original 35.64% participation in Motor-Columbus.

Lending and borrowing

Our loans to customers position increased to CHF 235.4 billion on 30 September 2004, up by CHF 8.8 billion from 30 June 2004, as a result of higher levels of lending in the Investment Bank and our wealth management businesses (click here for more details).

Repo and securities borrowing / lending

Cash collateral on securities borrowed and reverse repurchase agreements stood at CHF 609.3 billion on 30 September 2004, up by CHF 13.1 billion from 30 June 2004. However, this asset value already includes the effect of some netting between asset and liabilities positions. On a gross basis, before allowable netting, which fell over the quarter by CHF 20.3 billion, the position decreased by CHF 7.3 billion, mainly in the fixed income matched book. An increase in equity finance activities partly offset this.

Trading portfolio

From 30 June to 30 September 2004, trading assets including derivatives rose by CHF 47.0 billion. The increase was due to rises in equity positions, mainly related to our hedge fund businesses. Additional increases were registered in Japanese government bonds, mortgage-backed securities and fixed income derivative instruments. Derivative values rose due to the valuation effect of lower interest rates in major currencies, while volumes decreased slightly. These factors were partially offset by a reduction in debt instruments, primarily in the cash and collateral trading area.

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