A4 für Copyshop GB.indd - Bayerische Landesbank

60 BayernLB – our company
In 2004, LBS Bayern succeeded in maintaining market leadership, in close cooperation
with the Bavarian saving banks. During the year under review, Landesbodenkreditan-
stalt, in line with the tasks under its remit, continued to promote residential construc-
tion and urban development in Bavaria through trust loans and subsidies as well inter-
est-subsidised programmes funded by state monies and LBS’s own funds. Proprietary
business accounted for 70 percent of the overall result for state-subsidised business,
thus remaining virtually unchanged year on year.
Deutsche Kreditbank Aktiengesellschaft (DKB), an internet-based retail bank, focuses
on selected target customer groups as part of its business model. In the year under
review, the core focus was on expansion of the bank’s private customer business. The
number of customers was significantly increased in 2004. In addition to gaining new
customers, also targeting private customers in granular credit business, customer
retention represented another key priority of the bank’s activities. Streamlined, rapid
workflows incorporating quality assurance consolidated DKB’s position as an internet-
based retail bank. For the coming years, the bank intends to further increase contribu-
tion margins by exploiting savings potential and expanding the customer base by
means of innovative customer acquisition initiatives.
Magyar Külkereskedelmi Bank RT. (Hungarian Foreign Trade Bank / MKB) succeeded
in significantly increasing its market share of private customer business through the
acquisition of Konzumbank at the end of 2003, and incorporation of the acquired com-
pany in July 2004. This allowed MKB to boost its retail base. The network of branches
in Hungary was expanded by 22 further foreign entities, reaching a new total of
52 branches. Over 35,000 new customers were gained. MKB’s strategic objective for
2005 is to exploit the earnings potential of existing customer relationships, as well as
acquiring new customers. It aims to considerably expand its market position vis-à-vis
SMEs. MKB focuses on customers and sectors that require tailored solutions and a
broad product range due to their economic orientation, thus opening up potential
for cross-selling activities in particular – also at Group level.
In residential real estate financing (excluding property developers) under the Real
Estate Business Area, the bank succeeded in meeting its targets for 2004 in spite of a
generally difficult environment. For 2005, the business area anticipates slight recovery
of the real estate markets, and a concomitant upward trend in the financing-to-com-
pletion market.
BayernLB’s credit card business has been making solid contributions to the Bank’s net
commission income for many years. In 2004, the Bank continued to build on its strong
position. Thus, the average number of credit cards issued at the end of 2004 stood
at 830,000 units (representing an increase of 3.5 percent against 2003), while 2004’s
transaction volume amounted to EUR 4.17 billion. BayernLB’s share of the German
credit card market, measured in terms of transaction volume, is thus 12.1 percent.