Landesbank Berlin Holding

4
Letter to Shareholders
We should also like to mention the pleasing growth in certificates and fund business by way of example. Sales
of certificates increased sharply and our investment company LBB-Invest reported appreciable growth in
publicly offered funds. In these important markets, our expertise and the quality of service offered in day-to-day
business with our customers is well-known.
Dear shareholders, our investment and lending decisions are always based on the strict guidelines and risk
tolerance of our business model. For you, it is important to know that the Bank has not invested in the subprime
segment of mortgage loans in the USA, which has suffered massive losses. As a result, we only have
indirect sub-prime components in a few investments amounting to only 0 40 million. We notified you to this
effect immediately the sub-prime crisis started in the middle of last year. The requisite write-downs have
already been taken into account in the consolidated result. At the same time, the massive crisis of confidence
in the financial sector and the associated revaluation of securities have, of course, also had an impact on
our annual financial statements. We shall also provide you with information about these important aspects
in this annual report.
The 2007 result shows that our balanced business model has proved itself even under difficult general conditions.
All four divisions, namely Retail Banking, Regional Corporate Banking, Capital Markets and Real Estate
Financing, have contributed to what was, by and large, a pleasing result on which we shall report in detail
in this annual report.