Bankgesellschaft is focussing on core business - Landesbank Berlin

28
MANAGEMENT BUSINESS AREAS SHARE MANAGEMENT REPORT FINANCIAL STATEMENTS
Regional Corporate Banking
Even in the difficult 2003 financial year, <strong>Bankgesellschaft</strong> Berlin maintained its market position in
Regional Corporate Banking. Landesbank Berlin/Berliner Sparkasse and Berliner Bank still manage
some 80,000 clients in Regional Corporate Banking in Berlin-Brandenburg. Further cost cuts were
made within the framework of the reconstruction. Measures to increase quality and optim<strong>is</strong>e
processes were also introduced. These measures took effect in the 2003 financial year and enabled
Regional Corporate Banking to substantially improve its earnings situation yoy.
Focus on the regional market
In the 2003 financial year too, Regional Corporate
Banking continued to focus on the core market of
Berlin-Brandenburg with the further d<strong>is</strong>continuation
of the sub-portfolios from the nationwide business.
In addition, consultancy-intensive special transactions
and sub-portfolios that are not in line with
the strategy, as well as the nationwide public-sector
business, were reduced. Public-sector business
eligible for cover funds was also transferred to the
Capital Markets business area. These measures led
to a planned reduction in r<strong>is</strong>k assets of around 8%
in Regional Corporate Banking and to the considerable
overall decrease in the assets volume. In the
same period, our client base decreased slightly
yoy. Th<strong>is</strong> <strong>is</strong> primarily attributable to the scheduled
reduction in adverse client relationships.
Regional Corporate Banking in the core region of
Berlin-Brandenburg continued to focus on managing
commercial clients as well as small and medium
sized regional corporate clients. The Landesbank
Berlin/Berliner Sparkasse and Berliner Bank range
on offer matches th<strong>is</strong> client group’s demand profile
for financing and investment products. At the same
time, we are bundling our capacity for large regional
corporate clients in specific management units
according to brands. With the transfer of Berliner
Bank, all brands now share the legal status of Landesbank
Berlin since July 1, 2003. As Berliner Bank
retained close ties with its clients, the transfer was
carried out with very few client losses. Th<strong>is</strong> transfer
enabled us to combine additional functions in the
back office.