Additional Balance Sheet Information

Allowances and Provisions
CHF million	Balance at 31.12.06	Provisions applied in accordance with their specified purpose	Recoveries, doubtful interest, currency translation differences	Provisions released to income	New provisions charged to income	Balance at 31.12.07
Default risks (credit and country risk)	1,298	(299)	48	(279)	268	1,036
Trading portfolio risks	2,844	0	0	0	1,710	4,554
Litigation risks	293	(187)	(15)	(48)	115	158
Operational risks	131	(84)	3	(44)	158	164
Retirement benefit plans	106	(8)	(40)	0	49	107
Deferred taxes	34	0	(14)	0	11	31
Other ¹	1,664	(1,091)	(3)	(88)	2,964	3,446
Total allowances and provisions	6,370	(1,669)	(21)	(459)	5,275	9,496
Allowances deducted from assets	4,065					5,526
Total provisions as per balance sheet	2,305					3,970
1 The 31 December 2007 balance mainly includes provisions for capitalization commitments of subsidiaries that have a capital deficit of approximately CHF 2,772 million. In addition, provisions for reinstatment costs for leasehold improvements, provisions for employee benefits (service anniversary awards and sabbatical leave) and other items are presented in this line.

Statement of Shareholders' Equity
CHF million	Share capital	General statutory reserves: Share premium	General statutory reserves: Retained earnings	Reserves for own shares	Other reserves	Total shareholders' equity (before distribution of profit)
As of 31.12.05 and 1.1.06	871	6,246	1,681	10,562	26,792	46,152
Par value reduction	(631)				35	(596)
Cancellation of own shares	(30)				(3,997)	(4,027)
Capital increase	1	34				35
Increase in reserves			334		(334)	0
Prior year dividend					(3,214)	(3,214)
Profit for the period					6,558	6,558
Changes in reserves for own shares				(1,448)	1,448	0
As of 31.12.06 and 1.1.07	211	6,280	2,015	9,114	27,288	44,908
Cancellation of own shares	(4)				(2,411)	(2,415)
Capital increase		23				23
Increase in reserves			457		(457)	0
Prior year dividend					(4,275)	(4,275)
Profit for the period					(4,251)	(4,251)
Changes in reserves for own shares				327	(327)	0
As of 31.12.07	207	6,303	2,472	9,441	15,567	33,990

Share Capital
	Par value		Ranking for dividends
	No. of shares	Capital in CHF	No. of shares	Capital in CHF
As of 31.12.07
Issued and paid up	2,073,547,344	207,354,734	2,073,547,344	207,354,734
Conditional share capital	150,138,634	15,013,863
As of 31.12.06
Issued and paid up	2,105,273,286	210,527,329	2,082,673,286	208,267,329
Conditional share capital	151,437,410	15,143,741

On 31 December 2007, a maximum of 144,338 shares could be issued against the future exercise of options from former PaineWebber employee option plans. These shares are shown as conditional share capital in the table above. In addition, during 2006, shareholders approved the creation of conditional capital of up to a maximum of 150 million shares to fund UBS's employee share option programs. As of 31 December 2007 and 31 December 2006, 5,704 shares and zero shares, respectively, have been issued under this program.

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