The table below shows information on the balance sheet development.

The Group’s total assets at the end of the year were € 992.2 billion, an increase compared to the previous year of € 152.1 billion, or 18% (2004: € 840.1 billion). The development of exchange rates, in particular the U.S. dollar, contributed significantly to the increase in total assets.

The growth in total assets was largely the result of growth in trading assets by € 75.2 billion, to € 448.4 billion, reflecting the expansion of our business with structured high-value products. Securities borrowed increased by € 35.5 billion, to € 101.1 billion, and central bank funds sold and securities purchased under resale agreements grew by € 7.1 billion, to € 131.0 billion. In addition, loans rose by € 15.0 billion, to € 151.4 billion. This increase resulted from the expansion of the profitable consumer finance business in PCAM and higher loans to business and corporate clients in CIB. In other assets, loans held for sale increased by € 17.3 billion, to € 25.5 billion, due mainly to the strong growth of this business in North America, with the claims acquired in the course of our securitization activities or originated in our loan business.

The increase in total liabilities stemmed, to a considerable extent, from the growth of € 60 billion in deposits, which totalled € 380.8 billion at the end of the year. This was primarily caused by a rise of € 54.3 billion in interest-bearing deposits at our non-German offices. Certificates of deposit with remaining maturities of up to one year at our non-German offices increased by € 19.0 billion, other short-term time deposits outside Germany with remaining maturities of up to three months rose by € 20.7 billion. Furthermore, liabilities from central bank funds purchased and securities sold under repurchase agreements grew by € 38.2 billion, to € 143.5 billion. Securities loaned rose by € 11.7 billion, to € 24.6 billion, and trading liabilities increased by € 24.7 billion, to € 194.3 billion. Our long-term debt (including financial instruments at fair value) increased by € 6.7 billion, to € 113.6 billion. Although new long-term bonds and notes (including index certificates) for € 44.6 billion were issued, the resulting rise in our long-term debt was partly offset by early repayments, repurchases and bond repayments totaling € 39.8 billion.

Group shareholders’ equity increased in 2005 by € 4.0 billion, or 16%, to € 29.9 billion. The main contributors to this were net income of € 3.5 billion, positive effects of exchange rate changes (especially the U.S. dollar) amounting to € 1.1 billion and higher unrealized gains on securities available for sale (€ 0.7 billion). Furthermore, the increased reserves for share awards (€ 0.6 billion) and the issuance of common shares in connection with employee stock option programs (€ 0.4 billion) had positive effects on shareholders' equity. These factors were partly offset by items reducing shareholders’ equity, including share buybacks (€ 1.8 billion), the cash dividend paid for the 2004 financial year (€ 0.9 billion) and the increased obligation to purchase common shares (€ 0.4 billion).

Total regulatory capital in accordance with the recommendations of the Basel Committee on Banking Supervision increased in 2005 by € 5.3 billion, to € 33.9 billion. Of this growth € 3.1 billion is attributable to core capital. Changes included the aforementioned developments in net income, exchange rate changes, share awards, employee stock option programs, share buybacks and obligations to purchase common shares. Other factors on core capital are accrued dividends (deduction of € 1.3 billion), an increased goodwill/intangible deduction (€ 0.9 billion), as well as changes, totalling € 1.9 billion, in the regulatory adjustment relating to securities available for sale, in hybrid capital components in the regulatory group of consolidated companies and in other items. Supplementary capital increased primarily due to new issuances of subordinated liabilities.