Liabilities side

On the liabilities side, expanding primary funds (€ 90.0 bn, including subordinated capital) accounted for 70% of the increase in the balance sheet total. They rose by € 7.2 bn or 9% and represented 57% of the balance sheet total. The strongest increase was seen in amounts owed to customers, which were up by € 4.0 bn (+7%); within this increase, € 3.4 bn (+20%) related to the CEE business segment (primarily Poland), and BA-CA’s other units achieved combined growth of over 3% in funds entrusted to them by customers. Given the high liquidity level in the business sector, most of the increase in funds from customers was seen in short-term categories with maturities below three months. Savings deposits rose by 3% to € 18.1 bn (11% of the balance sheet total). Liabilities evidenced by certificates (€ 22.7 bn) increased by € 3.1 bn or 16% through issuance of longer-term bonds. Subordinated capital rose by 2%, mainly on account of an issue eligible as Tier 1 capital and launched via BA-CA Cayman. As on the assets side, interbank business (€ 44.2 bn), and in this connection primarily overnight money, again showed stronger growth in 2005 (up by € 4.4 bn or 11%). Trading liabilities were reduced by 24% to € 6.8 bn.

Shareholders’ equity excluding minority interests rose by € 411 m (6.4%) to € 6.9 bn. The main components of this increase were the inclusion of consolidated net income (€ 964 m), the dividend payment for 2004 (– € 221 m), as well as valuation results relating to the defined-benefit pension and severance-payment obligations (– € 552 m) which arose mainly from the reduction of the applied interest rate.