Annual Report 2001 - Landesbank Berlin
Annual Report 2001 - Landesbank Berlin
Annual Report 2001 - Landesbank Berlin
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The business area Equity Research & Sales combines the stock mar-<br />
Equity Research & Sales<br />
ket-oriented analysis capacity and the share brokerage unit. Net commission<br />
income was weaker compared with the previous year, brought about by<br />
market forces.<br />
The Bank is as a German partner member in the ESN European Securities Network,<br />
a European Research and Sales association with about 130 corporate<br />
analysts and strategists, whose capacity can be fully utilised reciprocally. Furthermore,<br />
this body, consisting of a total of ten banks and brokerage houses, provides<br />
access to many institutional investors on the distribution side.<br />
The increased volatility on the capital markets placed great demands<br />
Risk Management Derivatives<br />
on risk management with derivative interest rate instruments for proprietary<br />
trading. Positive earnings contributions were generated in individual<br />
areas of activity within the RMD portfolio. However, the contribution to the overall<br />
result did not meet expectations.<br />
Money Market Trading/<br />
Foreign Exchange<br />
Trading/Bond Trading<br />
Credit Derivatives<br />
Debt Finance<br />
The result generated in Money Market Trading far outstripped expectations.<br />
Foreign Exchange Trading maintained its market position in client<br />
and proprietary trading.<br />
As in the previous year, the focus of activities in Bond Trading was trading credits,<br />
jumbo mortgage bonds and government bonds. A further focus was satisfying the<br />
retail banking demand for higher-interest corporate bonds.<br />
Credit Derivatives business followed up on the successes of the previous<br />
year and again generated a positive result.<br />
Profitability was further increased in <strong>2001</strong> without reducing the lending<br />
quality in any way (still an AA– average). Equal contributions<br />
came from the divisions Securitisation, Syndicated Lending, High Grade Investments<br />
and Fixed Income Primary Markets.<br />
Substantial advances were made in optimising the portfolio mix to further reduce<br />
the employment of capital, in particular due to arranging credit derivative port-<br />
28 CAPITAL MARKETS
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