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102 Report on the Bank and the Group
} The Group’s
strategic subsidiaries
are strongly
retail-oriented
The segment consisting of the Group’s strategic subsidiaries encompasses the activities
of the BayernLB Group in the national and international banking sectors. These opera-
tions are divided up among the following majority holdings of the Bank:
• Deutsche Kreditbank AG, Berlin
• Landesbank Saar, Saarbrücken
• Banque LBLux S.A., Luxembourg
• Magyar Külkereskedelmi Bank Rt. (MKB), Budapest
• LB(Swiss) Privatbank AG, Zurich
• Bayern-Invest Kapitalanlagegesellschaft mbH, Munich
• BLB Asia Pacific Ltd., Singapore
In the 2004 financial year, the segment contributed roughly 44 percent of the Group’s
operating profit, compared with 23 percent in the previous year. The resulting return
on equity, standing at 14.1 percent, represents a significant increase compared to the
2003 figure of 4.3 percent. The enhanced ROE, coupled with a cost-income ratio for
2004 of 38.6 percent (47.1 percent in 2003), are a clear indication that the Group’s stra-
tegic subsidiaries enjoyed a successful financial year, especially in view of the strongly
retail-oriented nature of the segment. The year-on-year increase in average staff capac-
ity from 3,411 to 3,610 employees is primarily due to the merger of MKB and the Hun-
garian Konzumbank.
The clearly negative operating result of EUR – 388 million posted by the Other / Consol-
idation segment, compared to EUR – 20 million in the previous year, is largely due to
value adjustments and assumptions of losses in participations that are not assigned to
any operational business area.