A4 für Copyshop GB.indd - Bayerische Landesbank

uncertainty and thus faltering investor confidence. For this reason, demand remains
meagre – in spite of favourable investment conditions due to historically low interest
rates and reasonable construction and purchase prices.
Stable earnings situation
LBS reports a consistent upside profit trend in its 2004 profit and loss statement. Net
interest income was up EUR 3.2 million compared with the previous year. This was
primarily due to the fact that the decline in building savings loans due to low interest
rates was more than offset by the expansion of financial investments and non-collec-
tive credit business. Administrative costs were further reduced. Bottom-line operating
profit before risk provisions was EUR 72.3 million (EUR +4.9 million). This clearly illus-
trates LBS’s earning power, given the pressure on earnings caused by low capital mar-
ket rates.
Outlook
Since motives for building saving tend to be long lasting, LBS expects that in the
current capital market environment and with an unchanged state housing subsidy,
building saving business in 2005 will level off above the long-term average. LBS also
expects a stable operating profit thanks to its market-oriented products and strict cost
management.
Details on LBS’s business performance can be found in its annual report or online
(www.lbs-bayern.de).
Stabilisation at high level
EUR thousand
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
4,145,952
4,175,691
4,465,920
6,056,279
4,290,991
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Average gross new business 1993–2002: EUR 4,555,634,000
Source: Press briefing on annual results – 8 December 2004
4,472,938
4,848,501
4,023,892
4,350,980
4,725,197
7,761,938
5,650,000
BayernLB – our company
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