Bankgesellschaft is focussing on core business - Landesbank Berlin

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MANAGEMENT BUSINESS AREAS SHARE MANAGEMENT REPORT FINANCIAL STATEMENTS
Retail Banking
With Landesbank Berlin and its brands Berliner Sparkasse and Berliner Bank, <strong>Bankgesellschaft</strong>
Berlin <strong>is</strong> the regional market leader in business relating to financial services for private clients.
Via the Retail Banking Centres, we offer comprehensive solutions to meet our customers’ financial
needs, including product offers relating to pensions, asset management, consumer and real estate
financing as well as payment transactions and liquidity management. In addition to a wide range
of services for our universal clients, the Berliner Bank Retail Banking Advice Centre and the Berliner
Sparkasse Asset Management Centre focus on the particular demands of high net-worth clients.
In Private Banking, our high net-worth clients are supported individually and as a group.
The retail banking activities of Berliner Bank were
transferred to Landesbank Berlin during 2003 in
order to real<strong>is</strong>e additional synergy. Throughout the
entire year, we continued the cost reduction measures
that were begun. At the same time, the business
area focussed increasingly on strengthening its
earnings power.
Volume of deposits slightly reduced
The volume of deposits by private clients decreased
slightly yoy. The decline in savings and term deposits
<strong>is</strong> offset by a volume increase in higher-interest
demand deposits. In th<strong>is</strong> div<strong>is</strong>ion, customer demand
continues to show strong growth due to the low
interest rate level.
Overall, the volume of deposits developed in line
with the Berlin market, where a decline in private
household savings has been recorded for the past
two years.
Securities business
developed as scheduled
The securities business developed as scheduled. In
the past year, a pleasing improvement in the average
order volume was recorded. For the first time since
2000, initial signs of confidence returning were
apparent in the positive stock market development.
Nevertheless, innovative fund concepts (Kasko fund)
and structured products (SOFIA-system) continued
to make a dec<strong>is</strong>ive contribution to the securities
business. These products, which are specially tailored
to customer requirements in uncertain stock market
phases, enjoyed a high level of demand. The “E.I.
Capital-Welt-Kasko 100 PlusZins”, for example, was
sold out in June last year, even before the end of
the subscription.
At the end of 2003, portfolio management
for private clients, including unit shares, contained
a volume of securities totalling approximately
a 7.8 billion.