Landesbank Berlin Holding

Landesbank Berlin Holding
ANNUAL REPORT 2010

Group key figures at a glance
Income statement
1.1. – 31.12.
2010
1.1. – 31.12.
2009 1)
1.1. – 31.12.
2008
1.1. – 31.12.
2007
1.1. – 31.12.
2006
Net interest income € million 725 862 1,247 815 743
Allowance for losses on loans and advances € million 105 185 63 – 68 118
Net commission income € million 274 262 302 297 368
Net income from hedge accounting € million 7 – 15 – 18 3 3
Net gain from financial instruments recognised
at fair value through profit or loss € million 349 478 – 344 – 45 186
Net income from financial assets € million – 22 – 107 – 308 – 4 50
Net income from investments carried at equity € million 8 – 14 – 18 12 – 4
Other operating income € million 84 41 139 119 636
Administrative expense € million 1,003 985 940 965 1,115
Operating result before restructuring € million 317 337 – 3 300 749
Restructuring expenditure and income (net) € million 0 – 8 12 6 35
Operating profit / earnings before taxes € million 317 329 9 306 784
Income tax expense € million 52 64 – 35 76 97
Consolidated net profit for the period /
earnings after taxes € million 265 265 44 230 687
Balance Sheet 31.12.2010 31.12.2009 31.12.2008 31.12.2007 31.12.2006
Total assets € million 131,477 143,835 145,388 142,163 141,625
Shareholders’ equity including unappropriated surplus € million 2,722 2,712 1,962 2,847 2,624
Dormant participations (nom.) € million 700 700 700 700 700
Capital resources in accordance with SolvV € million 2,547 2,891 3,292 xx xx
Key figures
1.1. – 31.12.
2010
1.1. – 31.12.
2009 1)
1.1. – 31.12.
2008
1.1. – 31.12.
2007
1.1. – 31.12.
2006
Cost-income ratio % 70.4 65.4 94.0 80.6 56.3
Return on equity (before taxes) 2) % 11.8 14.0 0.4 10.8 35.3
31.12.2010 31.12.2009 31.12.2008 31.12.2007 31.12.2006
Overall capital ratio (German Banking Act) 3) % 16.89 16.82 16.41 15.04 10.6
Tier 1 capital ratio (German Banking Act) 3) % 15.24 14.45 13.74 11.80 7.2
Shares
1.1. – 31.12.
2010
1.1. – 31.12.
2009 1)
1.1. – 31.12.
2008
1.1. – 31.12.
2007
1.1. – 31.12.
2006
Earnings per share 4) € 0.27 0.25 0.03 0.21 0.67
31.12.2010 31.12.2009 31.12.2008 31.12.2007 31.12.2006
Market capitalisation € million 4,397 3,328 2,928 6,366 7,851
1.1. – 31.12.
2010
1.1. – 31.12.
2009 1)
1.1. – 31.12.
2008
1.1. – 31.12.
2007
1.1. – 31.12.
2006
Share price (closing price on Frankfurt Stock Exchange)
High € 4.41 3.76 6.32 8.18 7.96
Low € 3.24 2.07 2.18 5.25 3.11
31.12.2010 31.12.2009 31.12.2008 31.12.2007 31.12.2006
Employee capacity (reporting date) Number 5,985 6,009 5,999 5,965 5,960
1) Figures for the previous year have been adjusted
2) Average IFRS equity
3) RVG Group; after approval of the financial statements
4) Diluted = basic earnings

Contents
Landesbank Berlin Holding AG 2
Corporate profile 2
Letter from the Chairman
of the Supervisory Board 3
Letter Letter from from the Board of Management 4
Executive bodies of
Landesbank Berlin Holding AG
and Landesbank Landesbank Berlin AG 6
Our business areas 8
Employees 32
Share price of
Landesbank Berlin Holding AG 33
Ratings 34
Group management report 35
Overview of the Group 36
General development 50
Development of business –
January to December 2010 53
Events after 31 December 2010 66
Final statement on the dependent company
report in accordance with Article 312 of the
German Stock Corporation Act 67
Risk Report 68
Opportunities and risks / outlook 107
Landesbank Berlin Holding AG 1
Annual financial statements for the Group 113
Consolidated statement
of comprehensive income 114
Quarterly development of the
LBB Holding Group 116
Consolidated statement of financial position 118
Statement of changes in consolidated equity 120
Consolidated cash flow statement 122
Notes 124
Auditors’ report 206
Responsibility statement 207
Other information 208
Report of the Supervisory Board
of Landesbank Berlin Holding AG 209
Executive bodies of
Landesbank Berlin Holding AG 212
Corporate Governance Report 214
Important addresses 218
Major investments 221
Abbreviations 222

2
Landesbank Berlin Holding AG
Corporate profile
Landesbank Berlin Holding AG is a listed financial holding headquartered in the German capital. It is the parent
company of Landesbank Berlin AG. Landesbank Berlin is a universal bank, the historic core of which is Berliner
Sparkasse, founded in 1818. From the day of its foundation, Berliner Sparkasse has continuously fulfilled a
public-sector mandate in the service of the city. The Bank is the market leader in the Berlin banking centre and
stands for client orientation, fairness, security and modernity.
The business model is built on four pillars: Retail Banking and Regional Corporate Banking, in which the Bank
holds an excellent position as an innovative, customer-oriented bank, Real Estate Financing, which is focused on
the requirements of investors and residential development companies and Capital Markets, for which we offer
selected activities.
Retail Banking benefits from the comprehensive sales network of Berliner Sparkasse. Day-to-day business is
processed in the Retail Banking Centres, which is also where customers can obtain standard products, while
investment and pension products, which require more detailed advice, are managed in the Finance Centres. Expert
advice for customers with complex requirements is provided in the Asset Management Centres. The Bank’s
traditional branch-based services are rounded off by modern sales channels such as online banking and mobile
advice. Our banking products for pensions, asset accumulation, consumer and real-estate financing as well as
payment transactions and liquidity management enable us to provide our clients with an extensive offering.
In Regional Corporate Banking, Landesbank Berlin has a leading position as a banking partner for business
people and small and medium-sized enterprises. Experienced advisors based in Landesbank Berlin’s Regional
Corporate Banking divisions and in Berliner Sparkasse’s Regional Corporate Banking Centres provide competent
and individual support. In addition, our business clients also have a state-of-the-art, efficient sales channel in
BusinessLine. The Regional Corporate Banking range of services is rounded off by the Competence Centres for
Leasing and Factoring, International Banking, Start-ups and Business Succession as well as Electronic Banking.
Landesbank Berlin combines its expertise in providing financing solutions for commercial real estate projects
in the Real Estate Financing division. Investors, residential development companies, asset management com- com-
panies and real estate funds as well as selected developers in Germany and in selected European markets are
supported with both brands, namely Landesbank Berlin and Berlin Hyp. In Germany, the Landesbank Berlin
Group ranks as one of the largest providers of commercial real estate financing.
In Capital Markets business, Landesbank Berlin attends particularly to financial institutions and institutional
investors. We focus on selected activities in which we have leading expertise. The bank is also established as an
expert provider of capital market products for private investors as well. Due to our trading activities we are a
recognised business partner. We maintain an extensive network of trading partners and thereby offer direct
market access to all relevant trading centres. In LBB-INVEST, the bank has a fund provider for private and institu-
tional customers that has established itself among the leaders of German asset management companies.

Letter from the Chairman of the Supervisory Board
Ladies and Gentlemen,
Economic recovery on the one hand, tension on the financial markets due to euro turbulence on the other –
Landesbank Berlin together with Berliner Sparkasse has held its ground well on the market in this complex
financial year of 2010. It is generating good income as a reliable partner to its customers
This is because its customers are at the heart of Landesbank Berlin’s business model. It aims to convince
Retail Banking and Regional Corporate Banking customers in Berlin and customers for Commercial Real
Estate Financing, Capital Markets and the savings banks in Germany with performance and price. Quality
plays a central role in this.
This naturally means the quality of products and services, but also the improvement of processes, so as to
work even more effectively in the interests of its customers and owners. Elevating quality and performance
is therefore a central management responsibility within this Bank that – like its owners, the savings banks –
claims quality leadership for its products and services.
In addition to Landesbank Berlin’s direct business with customers, being owned by the savings banks
is also expected to lead to the expansion of other interesting business areas of the Bank. For example,
a special-purpose entity was formed together with Deutsche Leasing AG for the car and consumer loans
activities of the savings banks. The processing of loan applications, all subsequent processes and risk
management will come from a single source. This both guarantees quality and keeps full value creation
within with Sparkassen-Finanzgruppe.
Landesbank Berlin is well positioned to meet the challenges of the 2011 financial year and to play its part
in the positive, ongoing development of Sparkassen-Finanzgruppe.
On behalf of the Supervisory Board, I would like to thank you for the confidence you have shown in
Landesbank Berlin and ask that you continue in your constructive support of the Bank moving forward.
With kind regards,
The Supervisory Board
Heinrich Haasis
Chairman
Landesbank Berlin Holding AG 3

4
Landesbank Berlin Holding AG
Letter from the Board of Management
Dear shareholders,
Following a large number of external challenges, Landesbank Berlin brought the 2010 financial year to a satisfactory
and successful conclusion. In an eventful year, the entire financial sector had to cope with
difficult tasks once again. While the German economy expanded more strongly than had been expected,
a few European countries slid into an alarming sovereign debt crisis. The loss of confidence on the part
of investors in the security of public finance led in turn to considerable uncertainty on the financial markets.
In the second quarter, in particular, the situation in Greece and in other European countries caused the
financial world anxiety.
In this challenging environment, Landesbank Berlin Holding AG nevertheless succeeded in coming close to
the previous year’s good result. The consolidated operating result before taxes amounted to € 317 million.
We generated a profit after taxes of € 265 million. The result allows us both to strengthen our capital base
and to propose payment of a dividend at the previous year’s level of € 140 million. This shows that our business
model is successful throughout economic and market cycles and our employees can even overcome
difficult phases in the market.
Our retail banking business continued to develop positively and consequently made the largest contribution to
the consolidated result in 2010. This applies to all four divisions. At the same time, we are already benefiting
from measures relating to the ongoing strategic development of the Landesbank Berlin Group. The focus in
Retail Banking and Regional Corporate Banking was on customer satisfaction. Here, we recognise how much
confidence our Bank has earned. 2010 was also significant for the ongoing development of our strategy in
working with the savings banks. We have extended and intensified our cooperation – this applies to products
and services for both Retail Banking and Capital Markets as well as for back-office functions. And finally, a
capital increase took place at Berlin Hyp in October 2010, which was followed by the acquisition of the
remaining shares, meaning that Landesbank Berlin AG now holds all the shares in its real estate subsidiary.
As a result, we have strengthened the commercial real estate financing business considerably. With our two
brands, LBB and Berlin Hyp, we rank among the leading providers in Germany.
There were significant changes to the composition of the Board of Management of Landesbank Berlin
Holding AG and Landesbank Berlin AG in the year under review. Dr. Thomas Veit retired at the end of 2010.
Over a period of eight years, he advanced the Landesbank Berlin Group and its Real Estate Financing
division significantly and, with tremendous commitment, laid the foundations for the Bank’s long-term development.
The Board of Management and the Supervisory Board would like to thank him for this at this point.
Jan Bettink, previously Chairman of the Board of Management of Berlin Hyp, took over the Real Estate
Financing division in the Board of Management of Landesbank Berlin AG on 1 January 2011. Martin K. Müller
moved up to the Board of Management of the Holding at the beginning of the year.

Dear shareholders, the 2011 financial year will confront the sector as a whole with major challenges once
more. The markets will remain volatile, the consequences of the financial and debt crisis are still being felt.
On top of this, however, we are faced with the repercussions of new legislative measures, such as the
banking levy, which falls due for the first time this year, as well as Basel III and its regulatory requirements
in terms of capital. We must also adapt to the foreseeable structural changes within the S-Finanzgruppe
in connection with the reorganisation of WestLB and the ownership structure at Deka. With its customeroriented
business model, Landesbank Berlin is well prepared for these developments.
The expansion of our business with the savings banks is also a key target for 2011. We aim to be a reliable
and competent associated partner for the savings banks throughout Germany. Last but not least, the car and
consumer finance platform developed jointly with Deutsche Leasing will bring us further forward here. The new
bank, which will be called “S-Kreditpartner GmbH” will start operating officially from the middle of the year.
For the current financial year we expect positive growth in the German economy, albeit at a slightly slower
rate. With regard to the intensified debt situation of some countries in the euro zone and the risks associated
with this as well as the new regulatory requirements, 2011 will also be a challenging year for the financial
sector. The Bank is therefore assuming that it will be able to continue its positive performance in operating
business and increase earnings gradually. Here, we are focusing on a further expansion in our sound customer
business in all four segments. We shall exploit market opportunities – but always on the basis of our Bank’s
real financial strength and risk-bearing capacity.
With this strategy, we are pursuing the goal of long-term, successful business development combined with
an impressive performance in the interests of our owners, customers and staff.
With kind regards
The Board of Management
Dr. Johannes Evers Martin K. Müller
Landesbank Berlin Holding AG Letter from the Board of Management 5

6
Landesbank Berlin Holding AG
Executive bodies of Landesbank Berlin Holding AG and Landesbank Berlin AG
Board of Management
Dr. Johannes Evers
Chairman
Landesbank Berlin Holding AG
Landesbank Berlin AG
Martin K. Müller
Landesbank Berlin Holding AG
Landesbank Berlin AG
Jan Bettink
Landesbank Berlin AG
Serge Demolière
Landesbank Berlin AG
Hans Jürgen Kulartz
Landesbank Berlin AG
Patrick Tessmann
Landesbank Berlin AG
Supervisory Board
Heinrich Haasis
Landesbank Berlin Holding AG
Landesbank Berlin AG
Chairman
President of the German Savings Banks
and Giro Association (DSGV)
Bärbel Wulff *
Landesbank Berlin Holding AG
Landesbank Berlin AG
Deputy Chairwoman
Deputy Chair of the Works Council
of Landesbank Berlin AG
Heiko Barten *
Landesbank Berlin AG
Chair of the Works Council
of Landesbank Berlin AG
Hans Jörg Duppré
Landesbank Berlin Holding AG
President of the Deutscher Landkreistag
(German County Association)
Michael Dutschke *
Landesbank Berlin Holding AG
Member of the Works Council
of Landesbank Berlin AG,
Consultant on Information Technology
at Landesbank Berlin AG
Christina Förster *
Landesbank Berlin Holding AG
Financial Services Secretary,
ver.di Berlin-Brandenburg region
Gerhard Grandke
Landesbank Berlin Holding AG
Landesbank Berlin AG
Managing President of the German Savings Banks
and Giro Association of Hesse-Thuringia
Artur Grzesiek
Landesbank Berlin Holding AG
Landesbank Berlin AG
Chairman of the Board of Management
of Sparkasse KölnBonn

Sascha Händler *
Landesbank Berlin Holding AG
Member of the Works Council
of Landesbank Berlin AG,
Specialist / Team Coordinator for International
Business at Landesbank Berlin AG
Sabine Hentschel-Vélez Garzón *
Landesbank Berlin AG
Member of the Works Council
of Landesbank Berlin AG,
Consultant in Business Management
at Landesbank Berlin AG
Gerald Herrmann *
Landesbank Berlin Holding AG
Landesbank Berlin AG
ver.di German Specialist Team Leader
for Savings Banks / Bundesbank,
German Federal Administration, Berlin
Claus Friedrich Holtmann
Landesbank Berlin Holding AG
Landesbank Berlin AG
Managing President of the East
German Savings Bank Association
Michael Jänichen *
Landesbank Berlin Holding AG
Landesbank Berlin AG
Divisional Manager of Regional Corporate Banking
at Landesbank Berlin AG
Daniel Kasteel *
Landesbank Berlin Holding AG
Member of the Works Council
of Landesbank Berlin AG,
Employee in Project Management in
the Information Technology division
at Landesbank Berlin AG
Thomas Mang
Landesbank Berlin Holding AG
Landesbank Berlin AG
President of the Savings Bank Association
of Lower Saxony
* Employee representatives
Status March 2011
Landesbank Berlin Holding AG Executive bodies of Landesbank Berlin Holding AG and Landesbank Berlin AG 7
Frank Meysel *
Landesbank Berlin Holding AG
Member of the Works Council
of Landesbank Berlin AG,
Compliance employee
at Landesbank Berlin AG
Peter Mohr *
Landesbank Berlin AG
Member of the Works Council
of Landesbank Berlin AG
Wolfgang Pansegrau *
Landesbank Berlin Holding AG
Landesbank Berlin AG
Deputy Chair of the Works Council
of Landesbank Berlin AG
Helmut Schleweis
Landesbank Berlin Holding AG
Landesbank Berlin AG
Chairman of the Board of Management
of Sparkasse Heidelberg
Peter Schneider
Landesbank Berlin Holding AG
Landesbank Berlin AG
President of the Savings Bank Association
of Baden-Württemberg
Friedrich Schubring-Giese
Landesbank Berlin Holding AG
Chairman of the Management Board
of Versicherungskammer Bayern
Dr. Harald Vogelsang
Landesbank Berlin Holding AG
Landesbank Berlin AG
Chairman of the Management Board of HASPA
Finanzholding and Hamburger Sparkasse AG
Frank Wolf *
Landesbank Berlin Holding AG
Landesbank Berlin AG
Head of Financial Services Department,
ver.di Berlin-Brandenburg region

8
Landesbank Berlin Holding AG
Our business areas
Retail Banking
Market leadership in Retail Banking extended further LBB is Germany’s largest issuer of
credit cards Sales structures reorganised in line with changing customer requirements Joint
venture “S-Kreditpartner GmbH” for consumer and car finance founded in summer
Further expansion in market leadership
Traditionally, we supply retail customers with comprehensive
solutions for all their financial requirements
under the “Berliner Sparkasse” brand. Traditional
values such as customer orientation, fairness and
quality at a reasonable price win over customers
particularly in these unsettled times, meaning that
we have been able to expand our market leadership
in Retail Banking further. The strong position in the
Berlin area is supplemented by nationwide activities
in credit card business with co-branding partners
and in consumer loans business. Direct banking is
conducted via the majority interest in netbank AG.
At the same time, we are actively facing up to the
challenges of an ever more rapidly changing environment
and introduced redesigned current account
models in 2009. In 2010, net growth in the number
of accounts accelerated once more. Following an
increase of just under 27,000 accounts in the previous
year, the number of accounts based on the
new models rose again in 2010 by 34,000 to 716,400.
As a result, the growth in market share continued
in the second year. In total, the division manages
1.1 million personal current accounts.
Sales structures are geared to customers
In 2010, we started to refocus the sales structures in
the Retail Banking segment with the “Routes to the
Customer” project. Following extensive customer
surveys and analyses, expertise in consulting-intensive
investment and pension business was combined
in Finance Centres. The newly created Direct sales
division concentrates on developing potential business
with customers who no longer wish to contact
their bank via branch-based sales. The development
of mobile advice, which was started with a view to
2011, is following the trend towards supporting
customers on site, particularly in the case of high
net worth individuals and self-employed people.
The gradual reorganisation of the structures will
take place over the next two years.
As a result, the comprehensive sales network of
Berliner Sparkasse encompasses 68 new Finance
Centres with affiliated Retail Banking Centres,
65 stand-alone Retail Banking Centres, 23 Asset
Management Centres, 3 Real Estate Centres and one
private banking location. In the 2010 CityContest
organised by the Focus Money magazine, Berliner
Sparkasse was rated “Best Bank in Berlin”. The
quality of our advice was therefore also confirmed
from an external viewpoint.

We have steadily developed the tried and tested
multi-channel offering consisting of telephone banking
and an Internet presence with online banking
to increase its functionality, for example by making it
possible to open accounts online. We are proud of
having received the “Online Banking Award 2010” in
the service category for Berliner Sparkasse’s online
banking service. Over 55 bank portals were assessed
as part of a study by the PASS Consulting Group.
Significant growth in earnings and deposits
In 2010, earnings in the Retail Banking division
improved significantly compared to the previous
year. This is mainly attributable to interest-bearing
business. This more than offset net income from
securities business, which was still affected by the
repercussions of the financial market crisis. A nonrecurring
effect from the sale of the ATOS Worldline
Processing GmbH investment was posted under
other operating income.
Despite interest rates being very low in absolute
terms, the Retail Banking segment reported strong
growth in savings and investments. This was a direct
consequence of the change in customers’ attitudes
in favour of security resulting from their experience
in the financial market crisis. Deposits rose by 7%,
while commission business on securities remained
below expectations again.
Landesbank Berlin Holding AG Our business areas 9
S-Kreditpartner GmbH for car
and consumer loans
Lending business developed virtually as planned in
2010. Nationally, country-wide cooperation with
other savings banks started last year with the offer
of the savings bank private loan. Across Germany,
25 savings banks are now working together and
offering the product to their local customers. Activities
in consumer loans business with the Sparkassen-
Finanzgruppe and the motor trade will be combined
in a joint venture with Deutsche Leasing AG,
“S-Kreditpartner GmbH”, in mid-2011. In preparation
for the start-up, a single technical platform for the
savings bank private loan and the savings bank car
loan has been developed, which has been available
to the joint venture partners since the beginning of
2011. The savings banks have been managed jointly
with Deutsche Leasing AG from one office since
mid-2010. As a specialist alliance partner, S-Kreditpartner
GmbH should contribute to expanding
savings banks’ market share in car and consumer
financing similarly to their strong position in other
areas of business.
Largest credit card issuer
The Group is still the largest issuer of credit cards in
Germany with around 2.1 million cards issued. Here,
growth is driven by major co-branding partnerships
such as those with ADAC, Amazon and Air Berlin
with 1.8 million cards issued. To strengthen security
standards further in card-based payment transactions,
the Group equipped all the credit cards it has issued
with a new security microchip (EMV chip) in 2010.
This measure has already led to a fall in the allowance
for losses on credit card business in 2010.

10
Landesbank Berlin Holding AG Our business areas
Regional Corporate Banking
Income increased again year-on-year Region’s market leader Representative survey proves
loyalty and satisfaction among corporate clients “S-Finanzcheck” from Sparkassen-Finanzgruppe
launched as a structured interview style
Business relationships intensified
In 2010, Landesbank Berlin continued to maintain
its position as market leader in Regional Corporate
Banking in a persistently intensive and consolidated
competitive environment. Group-wide, small and
medium-sized enterprises are managed under the
“Berliner Sparkasse” and “Landesbank Berlin” brands.
The successful business model is an expression of
long-term stable customer relationships and mutual
trust, which has proved itself once more in the economic
and financial market crisis. In our core market
of Berlin-Brandenburg, we succeeded in further
intensifying business relationships with corporate
customers. As an expert regional bank, Landesbank
Berlin focuses on customer orientation and quality
with a strong understanding of service for entrepreneurial
activities. This management concept was also
successful in 2010. In Regional Corporate Banking,
earnings again climbed significantly in 2010 as
against the previous year.
Advice on business start-ups
Structured market processing in Regional Corporate
Banking led not only to our intensifying existing customer
relationships but also to our acquiring new
ones. Advice on and financing for business start-ups
continues to be of major importance in our responsibility
for Berlin as an economic location. Our activities
with regard to the Berlin-Brandenburg Innovation
Prize and the Business Plan Initiative competition are
important. With its recognised expertise in business
start-ups, Berliner Sparkasse is the market leader in
the region. It also pursues innovative concepts here,
such as the “GründerClub Berlin” (Berlin Start-Up
Club) group moderated by Berliner Sparkasse in an
established social media network.
Managing customer loyalty in all
sales channels
The quality strategy with a comprehensive management
concept tailored to the requirement structures
of target groups is having an impact. In 2010, we
implemented the innovative loyalty management
process in the management and sales process introduced
last year in all customer segments and sales
channels for the first time. Representative surveys of
commercial customers and small and medium-sized
enterprises by two independent market research
institutes showed that loyalty and satisfaction in all
customer segments and virtually all areas of activity
increased compared to the already high levels of
the previous year. Satisfaction with the quality advice
and services involving funds transactions was particularly
marked. Increased willingness among customers
to take part in the loyalty survey is an indication of
the fact that they make more use of the opportunity
for dialogue with Landesbank Berlin.

LBB small and medium-sized
enterprises survey
The LBB SME survey of our customers conducted
together with the German Institute for Economic
Research in 2010 is an additional medium for obtaining
estimates of their economic situation and future
prospects. These include findings on their liquidity,
planned investment projects and sources of finance.
The findings from the survey are used for consultancy
and sales activities and to respond flexibly to
financing requests, for example.
Success in generating new business
Two trends were apparent in corporate lending in
the year under review: firstly, the level of loans and
advances to customers was down year-on-year at
the end of 2010, in particular, due to the repayment
of larger exposures and the transfer of individual,
significant exposures to the Capital Markets division.
Secondly, new business developed very satisfactorily
as a result of systematic market processing in all
sales channels while retaining the Bank’s stringent
risk policy. Regional Corporate Banking deposits,
among other things for the investment of surplus
liquidity, also climbed again in 2010. Overall, customer
business was characterised by higher net interest
and commission income as well as low risk costs.
Landesbank Berlin Holding AG Our business areas 11
Considerable customer loyalty
Representative customer surveys in 2010 indicated
that Berliner Sparkasse or Landesbank Berlin is
the principal bank for some 90 % of the commercial
customers and some 78 % of small and mediumsized
enterprises. The trend towards more customers
choosing Landesbank Berlin as a partner for financing,
for deposits or other services underlines the considerable
customer loyalty and the increase in confidence
in Landesbank Berlin. Structured interview
styles involving specialists for key topic areas as a
basis for qualified consulting interviews have proved
their worth here. The Sparkassen-Finanzgruppe’s
“S-Finanzcheck” (financial check) was also introduced
for the corporate customer segment in 2010.
A mix of sales channels established
The sales channel combination of BusinessLine,
Regional Corporate Banking Centres and Regional
Corporate Banking departments has established
itself as a successful concept in the market. In
the year under review, TÜV Rheinland certified the
service and consulting quality for the entire Regional
Corporate Banking segment across all sales
channels for the first time. The quality certification
confirms the substantial aspirations and performance
of our Regional Corporate Banking. To secure
and develop the level achieved as a strategic competitive
factor, studies on the future development of
Regional Corporate Banking were carried out jointly
with highly regarded consultancy companies.

12
Landesbank Berlin Holding AG Our business areas
Real Estate Financing
Positive market sentiment in Real Estate Financing reflected in new business Success in
core market of Germany and selected international markets Share of international finance
carefully increased slightly More than 90 % of new business in good and very good risk classes
Commercial Real Estate Financing
The strategic Real Estate Financing division combines
both the sales and back office activities, operating
in close cooperation, for the commercial real estate
financing business of LBB and Berlin Hyp. This
division accounts for all of Berlin Hyp’s business
activities. Business activities in commercial real
estate financing are concentrated on financing on a
property-covered basis.
The main clients of the division are investors, residential
construction companies, asset management
companies and real estate funds as well as selected
developers. We offer clients the entire range of
real estate financing services. Flexible and innovative
solutions with short decision paths are a special
strength in this division. Through the joint operations
of LBB and Berlin Hyp in the Real Estate Financing
segment, we are able to offer our customers the full
economic potential of an experienced real estate
bank and a strong universal bank. In 2010, the segment
was one of the most active providers in the
sector and was consequently able to consolidate its
top position in the market.
Success in generating new business
In 2010, the Real Estate Financing segment again
reported success in generating new business in its
core market of Germany and selected international
markets in compliance with strict risk and profitability
parameters. The slight revival, which started
in the second half of 2009, continued in the year
under review in the domestic market and in our
foreign markets. The return of foreign investors, in
particular, led to a marked increase in transaction
volume in Germany.
The positive market sentiment is also reflected in
new business. At € 6.3 billion, the Real Estate
Financing segment increased the contract volume
(excluding renewals) considerably compared to
the previous year (€ 4.8 billion). In the customer
segments, the focus remains on investors, who
account for 77 %. In regional terms, the focus,
namely on the metropolitan regions in the former
West German states, remained unchanged at 48 %
(previous year: 35 %). Of the property types, 76 %
was attributable to commercially used properties
and 24 % to residential properties. Sales performance
was measured and managed on the basis
of new business volumes and the margin present
value of new business.

A sense of proportion and an appreciation of regional
conditions were applied to the conduct of foreign
business. In new business, the share of international
financing rose slightly to 36 % (previous year: 31 %).
This share is qualified by the fact that some 61 % of
new international business (€ 1.24 billion) is attributable
to German asset management companies, with
which additional property-unrelated collateral was
usually agreed. The share of international finance in
the overall Real Estate Financing portfolio was 16 %
in the reporting year (previous year: 12 %).
A focus on risk is paramount
In 2010, the Group again stood by its principle of
only performing business that meets its strict internal
profitability and risk criteria. Accordingly, the ratio
of good and very good risk classes in new business
was more than 90 %. The substantial reversal of
allowances for losses and recoveries on loans previously
written down were gratifying, meaning that net
new allowances, at € 74 million, were significantly
reduced compared to the previous year (€ 140 million).
Landesbank Berlin Holding AG Our business areas 13
Targeted portfolio management
To manage the lending portfolio and avoid concentrations
of risk, target portfolios have been set for the
respective categories in mortgage areas, customer
groups, types of property use and risk classes in
the Real Estate Financing segment. These targets
are set for a period of three years in each case and
updated annually. Achievement of the targets is
analysed and reported each month.
Longstanding partnerships
The Group will continue its successful strategy in
Real Estate Financing. It is still relying on effective,
client-oriented sales. Our business policy of longterm
partnerships as a traditional principal bank
with individual cross-selling opportunities benefiting
customers and the Bank will be maintained.

14
Landesbank Berlin Holding AG Our business areas
Capital Markets
Total income for Capital Markets at LBB stabilises with recovery on international financial
markets Still focusing on customer business Investment products adjusted to changing, more
defensive investment trends developed Outstanding certificate volume increased year-on-year
Activities in the division
LBB operates its Capital Markets division in Client
Business (Distribution und Production), Treasury and
Trading and International Business, supplemented by
the asset management company LBB-INVEST. The
Capital Markets business area also includes operating
units at the international locations in London and
Luxembourg.
Essentially, Client Business designs and sells equity,
interest and currency products for private and institutional
customers. The offering of LBB-INVEST includes
both mutual funds and special funds.
Treasury and Trading manages the liquidity of the
Group and secures its long-term refinancing. Treasury
and Trading is also responsible for managing the
short-term and long-term trading and investment
strategies.
International Business carries out export finance,
trade finance, commercial foreign business and
lending business with banks, companies and states
in selected regions in close collaboration with
Regional Corporate Banking.
Earnings situation stabilises
in the second half
2010 was characterised by the repercussions of
the critical escalation in the credit and refinancing
situation of some countries. In particular, the financial
position of the southern European peripheral
states (PIIGS) led to a substantial expansion in
the spreads on government bonds, banking and
financial securities and consequently to a dramatic
fall in valuations in the first six months of the year.
Despite the risk-diversified and defensive position
of the Capital Markets division, earnings were hit
hard in the first half.
At the same time, as in the previous year, opportunities
arose in high-margin investment products with
an appropriate risk profile for the Bank. New transactions
contributed to positive net interest income.
With the recovery in international financial markets
in the second half of the year, total income stabilised
meaning that the financial year closed at the level of
the previous year.

Focus on customer business
The Capital Markets division remains focused on
customer business. The division pursues the strategy
of steadily expanding the issuance and distribution
of tailored, structured products and increasing the
share of less volatile continuous income in total
income. The Capital Markets division has developed
customised investment products in reaction to the
changes in investor behaviour that have led to
a defensive focus. The aim of our sales strategy is
to add new customer groups to the customer base
and to intensify existing customer relationships.
Certificate volume increases
Outstanding certificate volume increased by
€ 0.4 billion compared to the previous year’s level.
LBB-INVEST’s fund volume remained stable at
€ 11.6 billion in a difficult market environment.
As in previous years, Landesbank Berlin AG was
nominated for the people’s choice award in the
categories “Zertifikate-Haus des Jahres 2010”
(Certificates Issuing House 2010) and “Zertifikat
des Jahres 2010” (Certificate of 2010) and ranked
second in the Top Rendite Portfolio-Zertifikat
(Top Return Portfolio Certificate). Awards in this
category are for innovation and remarkable technical
innovations on the market.
A targeted and risk-oriented expansion in the target
region took place in International Business. Thanks
to strong demand for ECA covered business, lending
volume developed better than planned in 2010.
Landesbank Berlin Holding AG Our business areas 15

16
Landesbank Berlin Holding AG
The success of
Landesbank Berlin is
down to its employees.
Some 6,500 staff are employed in the Landesbank
Berlin Holding Group plus another
200 trainees. We would like to introduce you
to seven people from the Bank on the next
few pages. They will highlight the huge variety
of operations in our Group.

Each of them champions customers directly
or indirectly as part of his or her job: whether
as a client advisor in a branch or as an internal
service provider for colleagues in the Bank.
And each of them finds their special place in
the City of Berlin to replenish their reserves
of energy and develop new ideas.
Landesbank Berlin Holding AG 17

18
Landesbank Berlin Holding AG
“ Talking to customers and offering
products that match their requirements
precisely – that is the aspect of my
work that I enjoy most.”

Landesbank Berlin Holding AG 19
Martina Ortmann
is a member of LBB’s marketing staff in Client Business.
She advises banks and asset managers on the purchase
of capital market products such as corporate bonds,
certificates or products for interest management. In the
course of one year, she visits some 150 clients plus
participating in roadshows in German financial centres
and events in Berlin. Her trips take Martina Ortmann as
far as Austria, Luxembourg and Switzerland. She does
not think a great deal of persuasion as a sales strategy:
working together to discover what a client needs and
then offering him a suitable solution is the aspect of her
work she enjoys most. Anybody who spends a great deal
of travelling will really appreciate the culture available
at home. Martina Ortmann adores modern art, such as
that displayed in the New National Gallery.

20
Landesbank Berlin Holding AG
“As a major company with
a huge variety of tasks, LBB
is just the right place to
start my career as a lawyer.”

Landesbank Berlin Holding AG 21
Timo Leonhardt
works as a lawyer in the legal department for retail and
corporate customers. Following his degree and legal
clerkship in Kiel and Hamburg, he wanted to join a large
company. Landesbank Berlin with its graduate trainee
programme for graduates in law was precisely the right
solution for him. He spent a good year learning “on the
job” how to put theory into practice. The topics and fields
of law covered are diverse and range from questions of
identification when opening accounts to commenting
on agreements and providing colleagues in the branches
with help with legal problems by phone. Legal proceedings
are, of course, also possible but we often succeed in
finding a solution with the customer beforehand which
both sides can easily live with. Timo Leonhardt has completed
the graduate trainee programme successfully
and is looking forward to new professional challenges in
LBB. He now feels thoroughly at home in Berlin, too: for
a weekend to be a success for him, it has to include an
hour in his favourite café in Berlin-Mitte.

22
Landesbank Berlin Holding AG
“No customer is like any other in
Private Banking. Which is why our
support is tailored to each of them.”

Landesbank Berlin Holding AG 23
Norman Castendyck
As the head of Private Banking at LBB, Norman Castendyck
works with high net worth customers. These can include
firms and associations in addition to private persons. As
well as classic asset management, Private Banking also
offers expertise in estate management and support services
for foundations. Even though its customer group is highly
individual, reactions to the financial crisis were similar
for many of them: they wanted security, consistency and
a bank they could count on. This is how more than a few
customers who had lost confidence in their own banks
came to LBB. The challenge now is to convince these new
customers with the highest possible standards of quality
in consulting and service. This is why the top priority for
Norman Castendyck and his staff is to adjust themselves
to the specific needs of each individual customer every
single day. In his free time, Norman Castendyck seeks out
sporting challenges on a racing bike. The Grunewaldturm
tower on the shores of the Havel River is a popular starting
point for demanding cycling routes.

24
Landesbank Berlin Holding AG
“I look after entrepreneurs
from every sector. And I always
learn something from them.”

Landesbank Berlin Holding AG 25
Susanne Fibranz
works in the Start-ups and Business Succession competence
centre. With twelve colleagues, she helps some
300 entrepreneurs from all sectors start their own businesses
each year. The process leads from an initial overview
of the planning documentation in the Internet to a
“getting to know you” discussion and proposals on the
form of financing and onto support from the Bank for
the next three to four years. A relationship of this kind
demands careful examination by both sides. Many potential
customers speak to several banks or obtain recommendations
from other firm owners. If they then opt for
LBB because they feel they are in the best hands here,
that is always a wonderful affirmation. If all entrepreneurs
are happy, Susanne Fibranz gets involved in companyfacilitated
sporting activities as head of LBB’s handball
section. And if she wants something more peaceful, then
she takes her golden retriever Dorri on a long walk
through Berlin’s Tiergarten.

26
Landesbank Berlin Holding AG
“ In my business, trust and
longstanding customer
relationships are a must.”

Landesbank Berlin Holding AG 27
Knut König
manages housing companies in the Real Estate Financing
division. His business partners are mainly from Berlin but
his database also includes customers from Bavaria,
Saxony or North Rhine-Westphalia. He not only advises
on property financing and on optimising financing but
is also on the spot with investment products and payment
transaction services, tailored precisely to the customer’s
requirements. The key factor in his work is longstanding
and constant customer relationships; of which there are a
fair number dating back more than 60 years with the Bank.
Knut König always had a particular talent for respond-
ing to different people. As a student, he earned a bit of
extra money with guided tours through Berlin. He has
retained a passion for history and the city’s architecture.
He has the best view of the city from the front row of a
Berlin double-decker bus – one of his favourite places.

28
Landesbank Berlin Holding AG
“ Training at Berliner Sparkasse is a
good basis for my future career.”

Landesbank Berlin Holding AG 29
Alena Britova
is a trainee in her first year at Berliner Sparkasse. In the
first few months, she has already acquired experience
in opening accounts, savings books and loans. The branch
in which she is doing her training is located in a shopping
centre. This means that the clientele is very diverse and
there is a lot of passing trade. She particularly likes dealing
with such a range of customers. She also feels comfortable
with her new colleagues. They have all been most welcoming
and she loves the working environment. An important
factor for somebody who is entirely on her own for the first
time. Alena Britova moved to Chemnitz with her parents
from Omsk in Siberia twelve years ago. Having finished
school, she was determined to move to a big city. It made
her even happier to move straight to Berlin. Everything is
new for Alena Britova: her job, the city, her first apartment.
She has not yet had a great deal of time to discover Berlin.
This is why she started getting to know the city with a
classic, Berlin’s Gendarmenmarkt.

30
Landesbank Berlin Holding AG
“ What do I like most about my
work? That I can develop something
and make a difference.”

Landesbank Berlin Holding AG 31
Michael Langner
runs the Capital Markets service of the back-office service
provider BankenService GmbH. Bank training, a degree
in business administration, a variety of posts in the Group:
Michael Langner likes looking for new challenges. In his
current role he particularly likes the fact that he has got to
know more about many departments in the Group. One
of his responsibilities was money market sales. Now he is
responsible at the end of the process chain as operations
manager for processing transactions in the back-office.
LBB is BankenService’s principal customer, but it is
increasingly acquiring external customers from throughout
Germany. For Michael Langner, the best aspect of
his job is the opportunity to shape his department and
develop something as BankenService expands further.
He finds the ideal counterpoint to office work not far from
his home on the Teltow canal. While jogging along the
water, other things occur to him and that’s where he has
his best ideas.

32
Landesbank Berlin Holding AG
Employees
Demands on employees have changed radically in
recent years. Not only the internal structural change,
but also the change in conditions on the human
resources and employment market caused by demographic
change demand a continual adjustment of
people’s qualifications. The Bank must take adequate
measures to cope with this.
The Bank offers its employees and its managers var-
ious opportunities for targeted training. Among others,
these include an in-depth training for bankers
and students on the Banking and Information Technology
degree course as well as various training
programmes for graduates. There is also a large
number of measures to develop personality and
methodological competence as well as to improve
employees’ technical and marketing skills.
Employees and managers are supported in their cur-
rent areas of responsibility or systematically prepared
to assume new functions in targeted, centrally
managed development and qualification programmes.
The Landesbank is continuing to expand its health
management continuously to maintain the health
and effectiveness of its employees. To this end, various
measures to promote health and increase effectiveness
were introduced on the basis of the findings
of an employee survey. A further study on the issue
of health will follow in 2011.
The management feedback will also be repeated. In
an anonymous process, employees assess their
managers and thus offer them the opportunity to
pick up suggestions on further improving their leadership
and improving teamwork in the team.
Additional training programmes are being designed
and implemented for technical specialists. The programmes
are aimed at boosting the motivation and
satisfaction of employees and guaranteeing the high
quality of their work.
Landesbank Berlin attaches an unvarying and substantial
degree of importance to the development of
junior staff and will continue its commitment to training
opportunities in the Bank unchanged.
A new mentoring programme for women will also
start. The aim of the programme is to support
female employees with potential in preparing for
management and specialist positions and to encourage
the exchange of experience and transfer of
knowledge across hierarchical levels.
The Board of Management explicitly thanks all
employees and their representatives in the name of
the Bank. Without their dedication and their commitment
it would have been impossible to keep to tight
schedules in strategic projects and to master the
multifaceted tasks involved.

Share price of Landesbank Berlin Holding AG
Virtually throughout 2010, the share price of Landesbank
Berlin Holding AG performed better than the
DAX and also the CDAX Banken comparison index.
In the first half of 2010, the CDAX outperformed our
share on a few days. However, the share then performed
significantly better than the DAX or the
CDAX in the second half of the year. At the end of
2010, the share price of Landesbank Berlin Holding
AG was € 4.40, 32 % higher than the level at the
beginning of the year (€ 3.33). In the same period,
the DAX firmed by 16 %, while the CDAX fell by
10 %.
150
140
130
120
110
100
90
80
150
140
130
120
110
100
90
80
30.12.2009
22.1.2010
12.2.2010
5.3.2010
26.3.2010
20.4.2010
11.5.2010
1.6.2010 1.6.2010
22.6.2010 22.6.2010
13.7.2010 13.7.2010
In view of the generally good result of Landesbank
Berlin Holding AG, the Board of Management and
the Supervisory Board will make the proposal at the
Annual General Meeting on 16 June 2011 of distributing
a dividend of € 0.14 per share to the shareholders.
In the presentation of the financial statements,
€ 13.9 million of the profit was transferred to
the legal reserves and € 124.3 million to other
retained earnings.
Landesbank Berlin Holding AG’s shares are listed in
official trading (General Standard) on the Berlin-Bremen,
Frankfurt and Dusseldorf stock exchanges.
3.8.2010 3.8.2010
Landesbank Berlin Holding AG CDAX Banks DAX
24.8.2010 24.8.2010
14.9.2010 14.9.2010
5.10.2010 5.10.2010
26.10.2010 26.10.2010
16.11.2010 16.11.2010
7.12.2010 7.12.2010
29.12.2010 29.12.2010
Landesbank Berlin Holding AG 33
20.1.2011 20.1.2011
10.2.2011 10.2.2011
Price performance
as
against DAX and
CDAX Banks in %
Closing price
as at 30.12.2009 =
100 %

34
Landesbank Berlin Holding AG
Ratings
Unguaranteed liabilities
Moody’s Fitch dbrs
Long-term rating A1 AA – A (high)
Short-term rating P-1 F1 + R-1 (average)
Outlook Stable Stable Stable
Financial strength D + C / D BBB +
Guaranteed liabilities
Long-term rating Aa1 AAA –
Short-term rating P-1 F1 + –
Outlook Stable Stable –
Pfandbriefs
Public-sector pfandbriefs Aaa AAA –
Mortgage bonds Aaa – –
The guaranteed liabilities are still subject to Gewährträgerhaftung (guarantee obligation).

Group management report
Overview of the Group 36
Organisational and legal structure 36
The Board of Management and the
division division of departments 38
Corporate governance declaration in
accordance with Article Article 289a 289a HGB 39
Remuneration system for the Board of
Management and the Supervisory Board 39
Information in accordance with Article 315 (4)
of the German German Commercial Code 47
General development 50
General economic situation 50
The Group’s business activities 50
Other activities 52
Development of business –
January to December 2010 53
Results of operations operations 54
Net Net assets 62
Financial position 65
Effects of consolidation 65
Events after 31 December 2010 66
Final statement on the dependent company
report in accordance with Article 312 of the
German Stock Corporation Act 67
Group management report 35
Risk Report 68
General conditions 68
Principles for risk management and control 69
Responsibilities 69
Overall risk management 70
Regulatory equity components of the Group 72
Counterparty default risk 76
Foreign volume 83
Liquidity risks 87
Market price risks 91
Securitisation transactions 96
Real estate risks 97
Operational risks 98
Internal control and risk management system
for accounting and financial reporting 104
Other risks 106
Opportunities and risks / outlook 107
Expected developments / assessment
of the economic situation 107
Development of the strategic divisions 108
Comparison of projected and actual figures 112
Estimate procedure / medium-term planning 112
Summary / overall assessment 112

36
Group management report
Overview of the Group
Organisational and legal structure
As of 31 December 2010, the organisational and legal structure of the Landesbank Berlin Holding Group
is as follows:
Beteiligungsgesellschaft der
S-Finanzgruppe mbH & Co. KG
99.66 %
Berlin Hyp AG
Regionalverbandsgesellschaft der S-Finanzgruppe mbH
General partner
10.63 %
Erwerbsgesellschaft der S-Finanzgruppe mbH & Co. KG
General partner
88.03 %
Landesbank Berlin Holding AG
100 %
BankenService GmbH
100 %
Landesbank Berlin AG
Berliner Sparkasse
The listed public limited company Landesbank
Berlin Holding AG (Holding) is the parent company
of the Landesbank Berlin Group and is headquartered
in Berlin. It is a financial holding company
as defined in the German Banking Act (KWG) and
is the sole investor in Landesbank Berlin AG (LBB)
and the asset management company Landesbank
Berlin Investment GmbH (LBB-INVEST).
The majority shareholder of the Holding is Erwerbsgesell
schaft der S-Finanzgruppe mbH & Co. KG
(S-Erwerbsgesellschaft) with a holding of 88.03 %.
It is the general partner of Beteiligungsgesellschaft
der S-Finanzgruppe mbH & Co. KG (S-Beteiligungsgesellschaft),
which holds 10.63 % of shares.
Overall, the shares held by S-Erwerbsgesellschaft
including the shares held by S-Beteiligungsgesellschaft
therefore amounted to 98.66 %. In its role
75 % –1 share
Free float
netbank AG LBB-INVEST GmbH
1.34 %
100 %
as the general partner of S-Erwerbsgesellschaft,
Regionalverbandsgesellschaft mbH assumes
management of both S-Erwerbsgesellschaft and
S-Beteiligungsgesellschaft.
LBB is a wholly owned subsidiary of the Holding.
It is an unlisted public limited company and a
financial institution as defined in the KWG. LBB
maintains branches in London and Luxembourg.
LBB holds the Group’s key strategic investments,
in particular, the interests in BankenService GmbH
Unternehmensgruppe Landesbank Berlin (Banken-
Service), netbank AG (netbank) and Berlin-
Hannoversche Hypothekenbank AG (Berlin Hyp).

LBB concluded a control agreement as defined in
Article 291 (1) Sentence 1 of the German Stock
Corporation Act (AktG) with BankenService on
26 March 2010. The agreement became effective
on registration in the BankenService Commercial
Register on 2 July 2010.
In October 2010, LBB acquired the shares in Berlin
Hyp held by Norddeutsche Landesbank, amounting
to 8.07 %, and consequently increased its
stake to 99.66 %. It also participated in a capital
increase at Berlin Hyp of some € 100 million and
concluded a profit and loss transfer agreement
with Berlin Hyp. On 9 December 2010, the majority
of the Extraordinary General Meeting of Berlin Hyp
agreed to the demand by the Board of Management
of LBB as representative of the main shareholder
to transfer the shares of the minority shareholders
in Berlin Hyp to the main shareholder pursuant to
Article 327a (1) Sentence 1 of the German Stock
Corporation Act (AktG) in return for adequate cash
compensation. Following the enactment of this
resolution through registration in the Commercial
Register on 25 January 2011, LBB has held 100 %
of the shares in Berlin Hyp.
The Group is organised as follows:
The Holding does not conduct any banking business
of its own and therefore does not employ any staff.
Its principal purpose is to hold the investment in
LBB. The work that this entails and the support for
the Holding’s executive bodies are provided on an
agency basis by LBB.
LBB is divided into four strategic business areas,
Interest Management and the Corporate Centre and
Back-office service functions. The strategic business
areas consist of Retail Banking, Corporate Banking,
Capital Markets and Real Estate Financing. The
central management of the banking book is reported
in Interest Management. The Corporate Centres
include the areas of IT, Risk and Controlling, Personnel,
Corporate Development, Audit and Finance.
Back-office includes the back-office services of
BankenService and the credit units at LBB. The real
estate financing provided by LBB and Berlin Hyp is,
as far as is legally possible, managed by the crossbank
business area. The respective units in the two
companies are also closely linked correspondingly
with each other.
Landesbank Berlin
Retail Banking Regional Corporate Banking Real Estate Financing Capital Markets
Interest Management
Corporate Centre / Back-office
Group management report Overview of the Group 37

38
Group management report Overview of the Group
At 5,985, the number of employees in the Group’s
scope of consolidation at 31 December 2010 was
slightly below the previous year’s level of 6,009.
The proportion of women was virtually unchanged
from the previous year at 62.9 %. The total fluctuation
rate was very low at 2.9 %, or 1.7 % after
adjustment for retirement.
Measures for improving employee qualifications such
as schemes for preparing employees for an initial
management role and the technical staff scheme for
specialists were continued. Landesbank Berlin also
started a new mentoring programme for women. The
aim of this training measure is to prepare female
employees for management and specialist positions
and to encourage the transfer of knowledge across
hierarchical levels.
The Board of Management and the
division of departments
As of 31 December 2010, the Board of Management
of the Landesbank Berlin Holding consisted
of Dr. Johannes Evers and Dr. Thomas Veit.
Dr. Johannes Evers
(Chairman)
Landesbank Berlin Holding AG
Landesbank Berlin AG
Retail Banking (up to 31 March 2010)
Finance (from 1 January 2011)
Corporate Development and Legal
Audit Dept.
Personnel (from 1 April 2010)
Dr. Thomas Veit
(until 31 December 2010)
Landesbank Berlin Holding AG
Landesbank Berlin AG
Real Estate Financing
Finance
Organisation
Information Technology
Personnel (until 31 March 2010)
Jan Bettink
(from 1 January 2011)
Landesbank Berlin AG
Real Estate Financing
Serge Demolière
Landesbank Berlin AG
Capital Markets
Dr. Thomas Veit retired from the Board of Management
of Landesbank Berlin Holding AG and Landesbank
Berlin AG from 31 December 2010. From
1 January 2011, the Board of Management of the
Landesbank Berlin Holding consists of Dr. Evers
and Martin K. Müller.
At Landesbank Berlin, Mr. Patrick Tessmann has taken
over the Retail Banking department from Dr. Evers
since 1 April 2010. At the same time, responsibility
for the Personnel department passed from Dr. Veit
to Dr. Evers. Since 1 January 2011, the former departments
of Dr. Veit have been the responsibility of
Dr. Evers (Finance) and Mr. Hans Jürgen Kulartz
(Organisation and Information Technology) and
Mr. Jan Bettink (Real Estate Financing), who joined
the Board of Management of LBB on 1 January 2011.
All operating activities of the Holding are performed
by LBB on the basis of an agency agreement
between the Holding and LBB. The responsibilities
of the individual members of the Board of Management
are organised as follows:
Hans Jürgen Kulartz
Landesbank Berlin AG
Regional Corporate Banking
Organisation
(from 1 January 2011)
Information Technology
(from 1 January 2011)
Martin K. Müller
Landesbank Berlin Holding AG
(from 1 January 2011)
Landesbank Berlin AG
Risk and Controlling
Compliance
Lending business
Risk Management
BankenService GmbH
Patrick Tessmann
(from 1 April 2010)
Landesbank Berlin AG
Retail Banking

Corporate governance declaration in
accordance with Article 289a HGB
The Board of Management and the Supervisory Board
of Landesbank Berlin Holding AG issued a declaration
of conformity in accordance with Article 161 AktG
on the basis of the German Corporate Governance
Code (GCGC) as amended 26 May 2010.
The Company also provided information on corporate
governance practices that goes beyond the
legal requirements and is intended as a practical
implementation of the GCGC.
The Company prepared a description of the working
methods of the Board of Management and Supervisory
Board and the composition and working
methods of their committees.
The Company exercised the option provided for and
published its corporate governance declarations in
accordance with Article 289a HGB on the Internet
site www.lbb-holding.de.
Remuneration system for the Board of
Management and the Supervisory Board
The remuneration system for the Board of Management
and the Supervisory Board of the listed
Landesbank Berlin Holding AG (Holding) and its
wholly owned subsidiary Landesbank Berlin AG (LBB)
is explained below in line with the legal pro visions
and recommendations of the German Corporate
Governance Code (GCGC) as amended 26 May 2010.
Both companies have been included in the same
summary report for reasons of transparency and in
the interests of greater clarity. The Holding does
not conduct any banking business of its own and
does not employ any staff of its own. All its operating
activities, with the exception of basic corporate
policy issues and investment rights, are performed
Group management report Overview of the Group 39
by LBB on the basis of an agency agreement. The
members of the Board of Management of the Holding
are also the members of the Board of Management
of LBB. The Supervisory Boards of the Holding and
LBB are largely made up of the same people.
This remuneration report summarises the principles
applied in stipulating the remuneration of the Board
of Management of the Holding and LBB and it presents
the structure and amount of the remuneration
of members of the Board of Management. In addition,
the principles applicable to and the amount of the
remuneration paid to members of the Supervisory
Board and its committees are described.
Remuneration of the Board of Management
The remuneration of the Board of Management in
the period under review complied with both the
requirements of the German Act on the Appropriateness
of Management Remuneration (VorstAG) and
the regulatory requirements of circular 22 / 2009 of
the BaFin dated 21 December 2009 (BaFin circular).
The remuneration system has been adapted to the
demands of the German Remuneration Ordinance
(InstitutsVergV).
The remuneration system for the Board of Management
including material contractual elements is
decided upon by the respective Supervisory Board
plenum and reviewed by it on a regular basis. This
body is also responsible for determining the total
individual remuneration of the individual members
of the Board of Management. The respective Audit,
Personnel and Strategy (APS) Committee of the
Supervisory Board prepares the appropriate resolutions
of the plenum.

40
Group management report Overview of the Group
Criteria for the measurement of fixed and variable
remuneration components are the responsibilities
of the respective member of the Board of Management,
his personal performance, the performance
of the body as a whole and the economic situation,
success and prospects of the division for which he
is responsible as well as the Company as a whole.
The amount of variable component is also dependent
on the fact that the success achieved proves
to be sustainable. In setting total remuneration, its
appropriateness is reviewed with the help of a comparison
of the remuneration of managers at other
German companies in the financial sector of a similar
size and complexity on the one hand and the salary
and wage structures within the Company itself on
the other. The fixed and variable remuneration of the
members of the Board of Management are appropriate
in relation to each other so that there is no
significant dependence on variable remuneration
but it can still provide an effective incentive. Overall,
the remuneration system is designed so that negative
incentives for taking disproportionately high
risks are avoided.
The Board of Management of the Holding consisted
of its Chairman Dr. Johannes Evers and Dr. Thomas
Veit as of 31 December 2010. At the same time,
they were also members of the Board of Management
of LBB. As of 31 December 2010, Messrs Serge
Demolière, Hans Jürgen Kulartz, Martin K. Müller
and Patrick Tessmann were also members of the
Board of Management of LBB.
Mr. Tessmann was appointed to the Board of Management
of LBB effective 1 April 2010. Mr. Vetter left
the Board of Management of the Holding and LBB
as of 31 December 2010. The Supervisory Board
of the Holding appointed Mr. Müller to the Board of
Management of the Holding from 1 January 2011
and the Supervisory Board of LBB appointed
Mr. Jan Bettink, Chairman of the Board of Management
of Berlin-Hannoversche Hypothekenbank AG
until 31 December 2010, to the Board of Management
of LBB effective 1 January 2011.
Notwithstanding the appointments as members of
the Holding’s Board of Management, the Board
of Management contracts, supply agreements and
comparable contracts for the members of the
Holding’s Board of Management are with LBB, for
which the vast majority of their work is undertaken.
For all members of the Board of Management, the
individual rights and duties resulting from their
membership of the Board of Management are thus
regulated through their contracts of employment
with LBB.
On this contractual basis, LBB pays all the Board of
Management remuneration for the members of the
Board of Management acting for both companies. In
return, it receives compensation from the Holding
based on time spent amounting to a monthly lump
sum of € 5 thousand per Board of Management
member and € 6 thousand for the Chairman of the
Board of Management. Accordingly, the Holding
reimbursed LBB € 132 thousand in 2010 (previous
year: € 128 thousand).
The Holding and LBB have concluded an appropriate
Group general insurance policy covering economic
losses by third parties (D & O insurance) for the
members of their executive bodies. This also covers
the personal liability of members of the Boards of
Management of the Holding and LBB in the event
that claims are made against the group of persons
in question for economic losses incurred in carrying
out their work. A deductible, as defined in the
German Corporate Governance Code, amounting to
three months’ fixed salary was initially agreed for
members of the Board of Management. In line
with the legal provisions of Article 93 (2) AktG, a

deductible of 10 percent of losses up to an amount
of one and a half times the fixed annual compensation
has been agreed for the period from 1 July 2010
onwards. The Holding pays the premiums for this
D & O policy, which is also in the interests of the two
companies.
With regard to their remuneration, the following
components are stipulated in the contracts of employment
for members of the Board of Management:
Fixed remuneration
The fixed remuneration consists of the non-performance-based
components. These include the basic
salary paid in monthly instalments (pensionable
fixed salary) and contractually agreed annual (nonpensionable)
remuneration. This will be paid to
Dr. Evers, Mr. Demolière, Mr. Kulartz, Mr. Müller and
Dr. Veit after approval of the financial statements
of the Holding and LBB. Mr. Tessmann receives
the non-pensionable fixed remuneration in twelve
equal monthly instalments. In line with the agreements
contained in the contracts of employment,
the relevant Supervisory Board reviews the fixed
remuneration every two years to ensure that it is
appropriate. This review takes into consideration
the above criteria and price and wage increases in
the Federal Republic of Germany. There is no legal
entitlement to any increase in the fixed salary.
Variable remuneration
Members of the Board of Management can receive
variable remuneration for their work in the past
financial year. The payment and amount of this is
resolved in the subsequent year by the respective
Supervisory Board plenum following preparation by
its APS Committee. The above-mentioned criteria,
in particular, the personal performance of the
respective member of the Management Board, the
contribution and the growth of his department and
the success of the Company in the period under
consideration are used here.
Group management report Overview of the Group 41
In line with the equity and regulatory law requirements,
the variable remuneration of the members of
the Board of Management starting with the variable
remuneration for the 2009 financial year has been
geared more strongly towards sustainable corporate
development and has been given a multi-year
assessment basis.
Firstly, the individual amount of variable remuneration
is determined for the Board of Management member
on the basis of the result of operations, the situation
and development of the areas for which the Board
of Management member is responsible, his activities
and personal work, the position of the Company and
the Group and taking into consideration any extraordinary
factors influencing the result of operations.
Variable remuneration cannot exceed the fixed
remuneration of that member of the Board of Management.
Secondly, total remuneration consisting of
variable and fixed remuneration components are
checked horizontally and vertically for their appropriateness.
Thirdly, variable remuneration is determined
by the Supervisory Board.
60 % of the variable remuneration for the 2009 finan-
cial year was paid after being stipulated in 2010.
The remaining 40 % is retained for a period of three
years and partial amounts are paid out over the
three financial years following the year in which
variable remuneration was determined. During the
retention period and after adoption of the annual
financial statements for each financial year, the
Supervisory Board resolves the amount of the instalments
taking into consideration the long-term
economic performance of the Group. Instalments
cannot exceed 13.33 % of the stipulated variable
remuneration per year.

42
Group management report Overview of the Group
Disregarding extraordinary factors, the main factor
of measurement is the Holding’s earnings before
taxes reported in audited financial statements of the
Holding compiled in accordance with the German
Commercial Code (HGB) (the Holding’s HGB earnings)
in the financial year preceding the stipulation
of the respective instalment. If HGB earnings are
generated by the Holding that are at least equal to
the HGB earnings in the financial year for which
the variable remuneration was originally determined
(initial value) it can as a rule be assumed that the
value of the Group has developed sustainably, which
justifies a full instalment (13.33 % of the stipulated
variable remuneration). If earnings are less than
the initial value, the Supervisory Board shall decide
the amount of the instalment to be paid out. This
can lead to a reduction or even cancellation of the
instalment.
Also, when determining the amount of each instalment,
the Supervisory Board will review whether
the performance and contribution of the respective
Board of Management department and the personal
work that the Supervisory Board took as its baseline
in measuring variable remuneration has proved
sustainable over the past financial years. This also
considers the risks taken by the member of the Board
of Management and those taken in his departments.
If a member of the Board of Management leaves
the Company, the determination of the instalments
over the retention period shall not be affected by the
termination of his executive body position and / or
the termination of his employment contract; the
member cannot earn entitlement to this remuneration
elsewhere.
These shall be no remuneration in shares or sharebased
instruments. It is not suitable to issue shares
in the Holding. Given the low free-float of less than
1.5 % and the narrowness of the market this entails,
the share price of the Holding does not reflect its
economic performance. Given the ownership structure
with the Holding as the sole shareholder, it is
not in the interests of the Group to issue new shares
in LBB. Shares in LBB and the Holding, which cannot
be traded on a liquid market, also do not represent
a reasonable incentive instrument for Board of
Management remuneration. Creating share-based
instruments (phantom stocks) at LBB offers no
advantage over stipulating variable remuneration in
cash as such share-based instruments would also
be payable in cash and would have to be based on
the same criteria as variable remuneration.
There were no other remuneration components
(pre-emption rights, other share-based remuneration
elements, etc.) for Board of Management members
in the 2010 financial year.
In accordance with the new requirements of the
InstitutsVergV, the variable remuneration of the
members of the Board of Management starting with
the variable remuneration for the 2010 financial year
will be geared even more extensively than before
towards sustainable corporate development. Under
the previous regulation, 40 % of the variable remuneration
was initially retained and 60 % paid out in the
base year, the year after the financial year to which
the variable remuneration relates. The retained
amount was paid out in staged instalments over
a period of three years and subject to the sustainability
of the profit contribution.
This ratio has been reversed with the new regulation.
Now 60 % of the variable remuneration is initially
retained, 40 % is attributable to the base year. For
the retained part of the variable remuneration, the
Supervisory Board shall resolve on authorisation
of the corresponding instalment in the three subsequent
financial years after approval of the annual
financial statements. Authorisation can be given
if the development of the Group and the individual

profit contribution of the member of the Board of
Management have proven to be sustainable. Sustainability
will be checked using the approach already
presented in the previous proceedings. Provided
that the profit contribution is sustainable, the amount
of the individual instalments per year may amount
to a maximum of 20 % of the total variable remuneration
set in the base year.
Of the instalments of the variable remuneration authorised
by the Supervisory Board in the base year
and in the three subsequent years, half will then be
paid out immediately in each case. The other half of
the authorised instalment is subjected to a second
sustainability assessment and initially allocated to a
sustainable instrument for this. Following allocation
to a sustainable instrument, the instalment is subject
to a retention period of a further three years. Following
the end of the retention period, the actual amount
of the payment is assessed on the basis of the
trend in three ratios. Ratios based on the Holding’s
HGB earnings before taxes (HGB earnings), the
Holding’s total IFRS earnings for the period excluding
taxes (IFRS total earnings), the return on equity
based on average IFRS equity in relation to the IFRS
consolidated operating result of the financial year
are applied. All three ratios are weighted equally in
the measurement. Subject to the sustainability of the
profit contribution, the final instalment of the variable
remuneration will consequently be paid in the seventh
year after the financial year to which it relates.
If there are changes under company law in the Group
during the retention period, which have a material
impact on the total earnings and risk structure, the
Supervisory Board may correct the above-mentioned
factor accordingly.
Other remuneration
Each member of the Management Board also has
unlimited use of a company car plus driver. The
wage or salary tax attributable to private use is paid
by LBB for the members of the Board of Management
with the exception of Mr. Tessmann.
In the first six months of Mr. Tessmann’s work for
Group management report Overview of the Group 43
the Board of Management, the LBB paid accommodation
and travel expenses totalling € 21 thousand.
Total remuneration
In the 2010 financial year, members of the Board
of Management received total remuneration of
€ 5,326 thousand (previous year: € 4,475 thousand).
This includes the contractually fixed, non-pensionable
remuneration of € 1,843 thousand (previous
year: € 1,844 thousand) of which € 188 thousand was
paid in the 2010 financial year and € 1,655 thousand
will be paid in the 2011 financial year. In line with
the criteria described above, variable remuneration
totalling € 1,610 thousand was set for the work by
members of the Board of Management in the
2009 financial year (previous year: € 0 thousand).
Of this figure, € 270 thousand was attributable to
Mr. Hans-Jörg Vetter, who left the Board of Management
in 2009, which was paid in the 2010 financial
year. 60 % of the variable remuneration (€ 804 thousand)
was paid to current members of the Board
of Management as of 31 December 2010 after
approval of the annual financial statements 2009.
The remaining 40 % (€ 536 thousand) will be
retained for a period of three years. No variable,
performance-based remuneration was paid for
the 2008 financial year.
The amount of variable remuneration for the 2010
financial year and the amount of the retention from
the 2009 financial year to be paid cannot yet be
reliably determined as of the time of the annual financial
statements being prepared. This information will
be presented in the 2011 half-year financial report.

44
Group management report Overview of the Group
The members of the Board of Management did
not receive any additional benefits for work carried
out for subsidiaries of the Holding and of LBB; in
particular, they received neither attendance fees nor
expense reimbursements.
Benefits from third parties were neither promised
to Board of Management members for their work as
a Board of Management member nor granted in the
financial year.
Benefits, which are promised to the members of
the Board of Management in the event of their duties
being terminated prematurely are:
In the event that members of the Board of Management
are unable to work as a result of accident or
illness, they are entitled to their full remuneration for
the following period: Mr. Tessmann up to six months,
Mr. Demolière up to one year, Dr. Evers, Mr. Kulartz
and Mr. Müller up to two years though not beyond the
end of their employment contracts. Following this
period, the members of the Board of Management
mentioned are entitled to a pension because of
occupational disability. If Mr. Müller or Mr. Tessmann
resigns because of invalidity, each will receive an
invalidity pension from the following month, the
amount of which is measured in accordance with
the provisions for the pension, with periods of
invalidity not counting as a member of the Board
of Management.
In the event of the contractual relationship being
dissolved by LBB, which is not triggered by good
cause on the part of the Board of Management
member (Article 626 of the German Civil Code), the
members of the Board of Management are entitled
to payment of a pension.
Dr. Veit made use of the right granted in the contract
of employment concluded with him and
retired of his own volition after his 62nd birthday.
The current members of the Board of Management
Mr. Kulartz and Mr. Tessmann are also entitled to
do this. After their 60th birthdays, the service
agreements can be terminated by Dr. Evers and
Mr. Demolière or by LBB. The members of the
Board of Management will then receive their pensions
before their 65th birthdays.
Benefits, which are promised to the members of the
Board of Management in the event of their duties
being terminated normally are:
The members of the Board of Management are
entitled to a pension following the end of the contractual
relationship as a result of reaching their
65th birthday and as a result of their appointment
ending, Mr. Tessmann following the end of a reappointment,
if the appointment is not renewed once
more, unless an extension of the appointment and
contract of employment at the same terms or terms
that are no worse is refused or there is good cause
as defined in Article 626 (1) of the German Civil Code.
During the first six months following their retire-
ment from the Company’s service, members of the
Board of Management are entitled to their official
remuneration but payment of their pension will start
from the seventh month. In the case of Mr. Müller
and Mr. Tessmann, their pension will be paid in the
first month following his retirement from the Company’s
service.
Pensions are measured by a certain percentage of
pensionable fixed salaries, which increases by 2 %,
by 1.34 % for Mr. Tessmann, for each year spent as
a member of the Board of Management. A maximum
percentage is contractually agreed for each Board
of Management member. The basis of measurement
for pensions is 100 % of pensionable fixed salaries,
or only 69 % for Mr. Demolière.

Individual details:
Pension rights
Maximum
acquired as at
31.12.2010
in % in %
Mr. Demolière 53 60
Dr. Evers 60 60
Mr. Kulartz 60 75
Mr. Müller 46 70
Dr. Veit 56 60
Mr. Tessmann 30 50
Under their contracts of employment members of
the Board of Management are entitled to have their
ongoing pension benefits adjusted. This adjustment
is based on the percentage changes to collective
wages in the private banking industry and in public
banks.
If Mr. Tessmann’s service ends as a result of cancellation
for good cause, for which Mr. Tessmann is
responsible, his pension will be reduced by 50 %.
In the 2010 financial year, no changes to the commitments
shown were agreed with regard to the
current members of the Board of Management as
at 31 December 2009.
As of the balance sheet date, the present value
of the pension obligations (DBO) under IFRS for the
current Board of Management was € 11,094 thousand
(previous year: € 11,404 thousand).
In 2010, amounts totalling € 546 thousand were
reversed from provisions and € 236 thousand added
to provisions (in the previous year, a net figure of
€ 2,262 was added) for benefits promised to members
of the Board of Management in the event of their
employment being terminated normally.
The individualised disclosures on the present value
of benefits, which are promised to the members
of the Board of Management in the event of their
duties being terminated normally, and the amounts
expended or provided for, are shown in the notes
to the consolidated financial statements.
Members of the Board of Management have received
advances or loans from the Bank and there were
contingent liabilities amounting to € 297 thousand as
of 31 December 2010 (previous year: € 296 thousand).
Furthermore, remuneration (pensions, dependants’
pensions and related benefits) totalling € 6,619 thousand
was paid to former members of the Board of
Management or their surviving dependants in the
2010 financial year (previous year: € 6,442 thousand).
The figure contains € 270 thousand for Mr. Vetter
for his work in the 2009 financial year.
As at the balance sheet date, the present value of
the pension obligations (DBO) under IFRS for this
employee group amounted to € 84,036 thousand
(previous year: € 94,206 thousand).
This remuneration and these provisions relate to
Group management report Overview of the Group 45
former members of the Board of Management and
their surviving dependents of both LBB and the
Holding. This is based on the fact that in the course
of the virtually complete divestment of the assets
of the Holding to LBB in 2006, all supply agreements
and similar contracts were transferred to LBB. The
corresponding provisions for ongoing pensions and
entitlements to pensions were also transferred to
LBB at the time.

46
Group management report Overview of the Group
Remuneration of the Supervisory Board
The remuneration of the respective Supervisory Board
is set out in the respective Articles of Association,
which may be amended by resolution of the Annual
General Meeting if necessary. The remuneration of
the Supervisory Board is based on the size, the
economic position and the long-term success of the
respective company as well as the particular tasks
and the responsibility of the members of the Supervisory
Board.
The rules on remuneration applicable to the Holding
are set out in Article 13 of its Articles of Association.
The rules on remuneration applicable to the Supervisory
Board of LBB are set out in Article 11 of its
Articles of Association. Under these rules, members
of the Supervisory Board of the Holding and LBB
receive fixed annual remuneration. Separate remuneration
linked to the performance of the respective
company has not been envisaged for either Supervisory
Board.
Additional remuneration is paid for membership of
the committees as well as the roles of chairman and
deputy chairman of the Supervisory Board and of
its committees at the Holding and at LBB.
The remuneration of members of the Supervisory
Board is set out as follows:
Members of the Supervisory Board receive fixed
annual remuneration of € 15,000 at the Holding
and € 10,500 at LBB.
The chairman of the Supervisory Board at both
companies receives twice the amounts in question,
while his deputy receives one and a half times the
amounts in question.
Members of the Audit, Personnel and Strategy
Committee of the respective Supervisory Board
and members of the Credit Committee of the
Supervisory Board of LBB each also receive fixed
remuneration. At the Holding this amounts to
€ 10,000.per year, the chairmen receive € 15,000
each, their deputies € 12,500 each. At LBB, this
remuneration amounts to € 6,000 per year, while
the chairmen of these committees each receive
€ 8,000 and their deputies € 7,000.
Members of the two Supervisory Boards do not
receive a separate attendance fee for meetings.
Remuneration for members of the Supervisory Board
who were not on the Supervisory Board or one of
its committees for the entire financial year is paid on
the basis of the number of days they were in office.
The Holding and LBB have concluded a Group
insurance policy covering economic losses by third
parties (D & O insurance) for the members of their
executive bodies. A deductible amounting to half their
fixed annual remuneration is agreed for each member
of the Supervisory Board. The Holding pays the
premiums for this D & O policy, which is also in the
interests of the two companies.
The members of both Supervisory Boards receive
their remuneration for their work carried out in the
respective financial year after the end of the financial
year in question.
Holding Supervisory Board:
For work on the Supervisory Board of the Holding,
total remuneration of € 389 thousand is payable
to the members of this Supervisory Board and its
committees for the 2010 financial year (previous
year: € 390 thousand), not including VAT.

LBB Supervisory Board:
For work on the Supervisory Board of LBB, total
remuneration of € 262 thousand is payable to
the members of this Supervisory Board and its
committees for the 2010 financial year (previous
year: € 262 thousand), not including VAT.
Holding Supervisory Board (Group):
For work on the Supervisory Board of the Holding
and the Supervisory Boards of other Group companies
including committees, total remuneration
of € 620 thousand is payable to the members of
the Supervisory Board of the Holding for the 2010
financial year (previous year: € 634 thousand),
not including VAT.
Apart from the trade union representatives, all
employee representatives on the Supervisory Board
of the Holding and LBB are employees of LBB.
The employee representatives on both Supervisory
Boards employed by LBB receive their salaries as
employees in addition to their Supervisory Board
remuneration.
Members of the Supervisory Board of the Holding
have received advances or loans from the Bank in
the reporting year and there are contingent liabilities
amounting to € 85 thousand as of 31 December 2010
(previous year: € 111 thousand).
No remuneration or benefits for services supplied
personally, in particular, consultancy and brokerage
services were paid or granted to members of the
Supervisory Board of the Holding or LBB.
Group management report Overview of the Group 47
Information in accordance with Article 315 (4)
of the German Commercial Code
Composition of the issued capital
The issued capital of Landesbank Berlin Holding AG
amounts to € 2,555 million and is divided into
999,327,870 no-par shares. The shares are bearer
shares and each share entitles the holder to one
vote. Further rights and duties of the shareholders
are taken from the legal regulations, particularly
Article 12 (53a) ff, (118) ff and (186) of the German
Stock Corporation Act (AktG).
Restrictions on voting rights or transfer of shares
of which the Board of Management is aware
In acquiring its shares from the State of Berlin
(808,996,446 votes, equivalent to 80.95 % of the
voting rights), Erwerbsgesellschaft der S-Finanzgruppe
mbH & Co. KG, (the buyer) has an obligation
towards the State of Berlin (the seller) not to transfer
ownership of the acquired shares to a third party
for a period of at least ten years from 8 August 2007,
except if this third party is an affiliated company
of the buyer in terms of Article 15 of the German
Stock Corporation Act (AktG) or another member of
S-Finanzgruppe and this third party (and in some
cases all other companies affiliated to the buyer in
terms of Article 15 of the German Stock Corporation
Act / other members of S-Finanzgruppe, to which
seller shares are transferred) also assumes this contractual
obligation towards the buyer.
Apart from the following exceptions, there are no
restrictions on shareholders’ voting rights either by
law or in the Articles of Association. In cases of
Article 136 of the German Stock Corporation Act,
voting rights from the shares concerned is excluded
by law. If the Company holds treasury shares, then
in accordance with Article 71b of the German Stock
Corporation Act, it cannot exercise any rights from
these.

48
Group management report Overview of the Group
Investments in the capital exceeding
10 % of voting rights
According to the information available to the Company,
Erwerbsgesellschaft der S-Finanzgruppe mbH
& Co. KG, Schloss Neuhardenberg, Schinkelplatz,
15320 Neuhardenberg, Germany, directly holds
88.03 % of voting rights. It is represented by its sole
general partner, Regionalverbandsgesellschaft mbH,
Schloss Neuhardenberg, Schinkelplatz, 15320 Neuhardenberg,
Germany, to which the voting rights are
attributable in line with Article 22 (1) No. 1 WpHG.
Beteiligungsgesellschaft der S-Finanzgruppe mbH
& Co. KG, Schloss Neuhardenberg, Schinkelplatz,
15320 Neuhardenberg, Germany, directly holds
10.63 % of voting rights. It is represented by its personally
liable shareholder, Erwerbsgesellschaft der
S-Finanzgruppe mbH & Co. KG, Neuhardenberg,
which means that the voting rights are indirectly allocated
to this company and Regionalverbandsgesellschaft
der S-Finanzgruppe mbH, Neuhardenberg.
Shares with special rights conferring
powers of control
The Company has not issued any shares with
special rights.
Type of voting right controls when employees
have an interest in capital and do not exercise
their control rights directly
The employees of the Company and its subsidiaries
do not have an interest in the capital such as results
in indirect exercise of rights of control by the employees.
As the shares in the Company are bearer shares,
detailed information on their free float shareholders
and thus possible private ownership of shares by
employees is not available to the Company.
Provisions governing the appointment and dismissal
of members of the Board of Management
and changes to the Articles of Association
Articles 84 and 85 of the German Stock Corporation
Act apply to the appointment and dismissal of members
of the Board of Management. In accordance
with Article 6 (1) of the Articles of Association, the
number of members of the Board of Management is
decided upon by the Supervisory Board. The Board
of Management consists of at least two members.
The Supervisory Board appoints the members of the
Board of Management for a maximum of five years.
In accordance with Article 31 of the German Co-
Determination Act, a two-thirds majority of the Supervisory
Board is required for the appointment of
Board of Management members. Landesbank Berlin
Holding AG is a financial holding company as defined
in Article 1 (3a) of the German Banking Act (KWG),
which means that in accordance with Article 2d KWG,
the members of the Board of Management must be
reliable and must possess the necessary technical
aptitude to manage the companies. There are no
further provisions in the Articles of Association.
In accordance with Article 16 (3) of the Articles of
Association, resolutions of the Annual General
Meeting are passed with a simple majority of votes
and – when a capital majority is required – with a
simple capital majority, unless otherwise stipulated
by law or in the Articles of Association. Therefore
the statutory provisions of Articles 179 et seq. apply
to changes to the Articles of Association. In accordance
with Article 12 (3) of the Articles of Association,
the Supervisory Board is entitled to make changes
to the Articles of Association which relate only to
their wording.

Powers of the Board of Management concerning
the possibility of issuing or buying back shares
The Annual General Meeting of 9 June 2009 had
authorised Landesbank Berlin Holding AG to buy
and sell own shares for the purpose of securities
trading until 30 September 2010 in accordance with
Article 71 (1) No. 7 of the German Stock Corporation
Act. On rescission of this resolution, the Annual
General Meeting of 15 June 2010 authorised Landesbank
Berlin Holding AG to buy and sell own shares
for the purpose of securities trading until 14 June
2015 in accordance with Article 71 (1) No. 7 of the
German Stock Corporation Act.
Both resolutions were made under the condition that
the acquisition prices may not exceed or fall short
of the average closing price of the shares in the
Xetra trading system (or a comparable successor
system) of the Frankfurt Stock Exchange for the ten
preceding days by more than 10 %. Also, the trading
portfolio of the shares acquired for this purpose
may not exceed 5 % of the share capital at the end
of each day.
In addition, in accordance with the resolution of the
Annual General Meeting on 9 June 2009, there was
authorisation to acquire treasury stock for purposes
other than securities trading in accordance with
Article 71 (1) No. 8 of the German Stock Corporation
Act until 30 September 2010. On rescission of this resolution,
the Annual General Meeting of 15 June 2010
authorised Landesbank Berlin Holding AG to acquire
treasury stock for purposes other than securities
trading in accordance with Article 71 (1) No. 8 of the
German Stock Corporation Act until 14 June 2015.
Both resolutions were made on the condition that
the purchase price per share may not exceed or fall
short of the average closing price of the company’s
shares in the Xetra trading system (or a comparable
successor system) of the Frankfurt Stock Exchange
for the ten preceding days by more than 10 %, and
that in total only shares up to 10 % of the share
capital may be acquired on the basis of this authorisation.
Together with treasury shares acquired for
trading purposes and for other reasons which are
owned by the Company or are attributable to the
Company under Articles 71a et seq. of the German
Stock Corporation Act, the shares acquired on the
basis of these authorisations may not exceed 10 %
of the Company’s share capital at any time. The
Board of Management was authorised in each case
to withdraw shares acquired on the basis of the
above authorisation, fully or partially, in the latter
case also through repeated exercise of the authorisation,
without the withdrawal or its execution
requiring a further resolution by the Annual General
Meeting. It may allow for the remaining shareholders’
proportion of share capital to increase as a
result of the withdrawal. The Board of Management
was authorised to adjust the information on the
number of shares in the Articles of Association.
No use was made of the authorisations under the
four above resolutions in the reporting year.
Material agreements on condition of a change
in control following a takeover bid
There are no material agreements made on condition
of a change in control in the event of a takeover bid.
Compensation agreements with members of
Group management report Overview of the Group 49
the Board of Management or employees in the
case of a takeover offer
No compensation agreements have been made with
members of the Board of Management or employees
in the case of a takeover offer. See also the section
“Remuneration system for the Board of Management
and the Supervisory Board”.

50
Group management report
General development
General economic situation
Following a mixed winter half-year, the economy in
Germany picked up dramatically in mid-2010. The
expansion was broadly based. Given a generally weak
euro, exports benefited from the rapid recovery in
Asia and the USA. Investment in plant and equipment
and consumption recovered from a low base. This
process was supported by favourable financing conditions,
better capacity utilisation and less anxiety
about employment among private households. While
the decision has been made to consolidate public
sector budgets, the effects have not yet been felt
on the demand side. The momentum ebbed at the
year-end. Growth in orders slowed having reached
normal levels. Exports to the rest of Europe even fell
slightly. Nevertheless, sentiment in German companies
remained very positive to the end of the year.
Expansionary monetary policy was maintained. The
European Central Bank (ECB) left its refinancing
rate at 1 % but reduced the surplus reserves held by
commercial banks in the euro system and, by this
means, achieved the first amendments to conditions
on the interbank market.
The dwindling creditworthiness of some member
states in the euro zone caused considerable tensions
on capital markets. The dramatic rise in risk
premiums forced an internationally coordinated
rescue programme, which was limited until 2013 but
did not rectify the causes of the debt crisis. The
finance ministers of the 27 EU countries also agreed
the key points of a future, permanent European
Stabilisation Mechanism at the end of November.
Imponderables regarding the form and extent of
the involvement of private creditors in future restructurings
caused lasting uncertainty among market
participants.
Berlin will post a far slower growth rate for the year
under review than the other German states. However,
this is primarily attributable to the slump being
less marked here during the recession, meaning that
the base effect was lower. However, overall the trend
towards economic growth recovering to the national
average was confirmed. Berlin is supported by a
comparatively high share of the value added from
the services sector, sustained growth in tourism and
an industrial structure that is comparatively robust
vis-à-vis cyclical fluctuations. However, the Berlin-
Brandenburg region is dominated by a weaker
income and assets structure in private households
compared to the rest of Germany and companies
with predominantly smaller sales classes.
The positive trend in the Group’s Retail Banking is
stabilising with the improvement in the economic
situation. In Real Estate Financing, the Bank benefited
from positive developments in real estate
markets. In Capital Markets, the effects of the turbulence
in the market remained closely confined.
The Group’s business activities
Taking account of our assessment of the economic
situation, the Landesbank Berlin Holding Group
remains focused on continuing its growth in its four
strategic business areas, using investments to exploit
market opportunities, and continually improving the
quality of its products and services. The Group is
increasingly playing a stronger role as a service provider
in the Sparkassen-Finanzgruppe.
The Group has a strong market position in its core
region of Berlin-Brandenburg. The national focus on
Real Estate Financing and its national credit card
and consumer loans business compensate for the
limited growth prospects in its core region.

The strategic business areas are managed using the
following performance ratios:
Operating result / earnings before taxes,
Return on equity,
Cost-income ratio.
The return on equity is determined by dividing the
operating result / earnings before taxes by the tied-up
equity capital. The tied-up equity capital of the segments
is the capital required according to financial
procedures.
The cost-income ratio is calculated as the ratio of
administrative expenses and the total of net interest
income, net fee and commission income, net income
from hedges, net income from financial instruments
recognised at fair value through profit or loss, net
income from financial investments, net income from
investments carried at equity and other operating
income.
Adequate equity / liquidity resources, HGB earnings
and dividend performance are also used as control
parameters at Group level and the level of the individual
banks.
The Group’s banking business is conducted in the
following four strategic business areas as well
as Interest Management and the service functions
Corporate Centres and Back-office.
The Retail Banking segment carries out universal
banking business with private individuals. Some
2 million retail customers are managed in Berliner
Sparkasse’s regional business. The vast majority of
the national credit card business is carried out with
co-branding partners (such as ADAC, Amazon, Air
Berlin) and encompasses some 1.8 million credit
cards issued by the Company. Together with its own
card programmes, the number of credit cards issued
comes to 2.1 million. In national consumer loans
business, the Company together with Deutsche
Leasing AG is pressing ahead with the development
of a consumer loan platform for Germany’s savings
banks, which is to lead to the establishment of an
independent consumer loan bank – “S-Kreditpartner
GmbH” – in mid-2011. netbank represents an investment
in direct banking for LBB.
Regional Corporate Banking manages some
Group management report General development 51
64,400 business people and small and mediumsized
enterprises. Its key strategic goal is to reinforce
its strong market position by exploiting the
potential available in the core market of Berlin-
Brandenburg. Here, quality as a competitive factor
and the intensification of customer relationships
are of particular importance. The Company features
in the market with the Landesbank Berlin AG brand
in its business with small and medium-sized enterprises
and with the Berliner Sparkasse brand in its
business with commercial clients.
In commercial Real Estate Financing, LBB and Berlin
Hyp work together. All employees in Real Estate
Financing work across the two entities in accordance
with standard regulations and processes. The business
model combines the advantages of a Pfandbriefbank
with those of a universal bank. The segment
manages some 2,300 risk-sharing communities with
some 6,100 mortgaged properties in Germany and
in selected international markets. Transactions are
focused on commercial investors, residential construction
companies, asset management companies,
real estate funds and selected developers. In addition
to being managed from our banks’ headquarters in
Berlin, customers are also managed through four
German offices in Hamburg, Düsseldorf, Frankfurt /
Main and Munich as well as by five representative
offices abroad (the Netherlands, Poland, the Czech
Republic, United Kingdom and France). Loan administration
is carried out centrally in Berlin.

52
Group management report General development
Capital Markets division encompasses Client Business
(Distribution und Production), Treasury and
Trading as well as International Business. The Capital
Markets business area also includes the asset management
company LBB-INVEST and LBB operating
units at the international locations in London and
Luxembourg. With this position, Capital Markets will
pursue the Bank’s strategy of leveraging diversified
income flows from a broad range of activities. The
vision for the future sales strategy was defined as part
of the “Capital Markets strategy project”. Additional
earnings potential was defined on the basis of a
detailed analysis of target customers and customer
requirements. The segment provides financial services
for internal and external customers. Customer
business is supplemented by the management of
short and long-term investment and trading transactions.
The Group’s liquidity is also managed and its
long-term refinancing secured in Capital Markets.
Other activities
Preparations for the conversion of the core
banking system
Since February 2009, the Bank has been preparing
to convert the current core banking system to One-
System Plus (OSPlus) in April 2011. The background
to the standardisation of the IT system landscape
in the Sparkassen-Finanzgruppe is the merger of the
services company FinanzIT and Sparkassen Informatik
to form Finanz Informatik, which took place in
2008. The concentration on one service provider is
expected to generate considerable synergies for LBB.
Expansion of business with savings banks
The Group sees itself as a service provider for savings
banks. It has business relationships with more
than 300 banks and is expanding this business on
a needs-driven basis. Building on its own experience
as a savings bank for Berlin, LBB focuses its offering
on customer-oriented capital markets business,
consumer loans and back-office. Within this framework,
plans are in place for LBB to establish more
companies with savings banks, such as back-office
centres, if required.
Expansion of quality management
Quality is a central enterprise value and a requirement
for business success. Changes in the market
and customer requirements must be detected and
incorporated early on. Therefore, quality management
has been high on the agenda since the start of
2008. Quality initiatives have been launched in all
areas of the Group. These are intended to improve
not only products and services for customers but
also to optimise internal processes and cooperation
at interfaces. Active management of processes and
the quality of the services provided represent an
ongoing challenge for all employees and managers
at LBB. In back-office the management systems for
risk management and BankenService were certified
by DQS in line with the international quality management
norm ISO 9001 2008.

Development of business – January to December 2010
The recovery in the global economy that started at
the beginning of the year continued in the second
half, albeit in weaker form. In particular, the global
economic growth was driven by the Asian emerging
markets, which have already achieved economic
growth at pre-crisis levels once more. However, most
industrialised nations were still under the influence
of the consequences of the economic and financial
crisis. The US economy is still dealing with unswervingly
high unemployment and the problems on the
real estate market. The economic performance in
the euro zone was highly mixed. While the prospects
for the countries hit especially hard by the national
debt crisis darkened considerably, the economy in
Germany in particular expanded strongly, exceeding
original expectations. It remains to be seen to what
extent this rapid recovery based on huge monetary
and fiscal policy measures will translate into a selfsupporting
upturn, particularly as regards private
demand.
Having overcome the low point of the economic
crisis, Germany continued the upturn that had started
in 2009 and has largely made up the ground lost in
the economic slump. The greatest impetus was provided
by the dynamic growth in the global economy
and the resultant surge in export demand. Substantial
exports, increased industrial investment and a pickup
in domestic demand during the course of the
year led to the largest percentage increase in gross
domestic product since reunification. The trend in
corporate insolvencies was also positive. The labour
market, which was characterised by growth in
employment and falling unemployment, proved to
be particularly stable.
The economic situation also improved sharply in the
core region of Berlin-Brandenburg in 2010. Berlin’s
economic output is already back at pre-crisis levels.
The backbone of growth was the strong industrial
economy and the service sector. In particular,
the tourist sector must be highlighted here, which
exceeded the figures for the previous year and
broke through the marker of 20 million overnightstays
for the first time. Companies’ improved assessment
of the current business situation and their
expectations of business as well as the prospects
for employment and investment plans are a further
expression of the economic recovery.
The biggest risk to economic development and the
stability of the common European currency is the
sharp rise in public debt in some euro nations. Consolidation
programmes and extensive reforms that
have already been resolved by several member
states are needed to limit public debt. This process
of reform may impede economic growth in the euro
zone. In addition, the EU nations agreed on a rescue
system for highly indebted members in May 2010.
This involves obtaining loans from the International
Monetary Fund (IMF) plus lending and guarantees
from the euro states. In this connection, the finance
ministers of the 27 EU countries also agreed the key
points of a future, permanent European Stabilisation
Mechanism at the end of November.
The central banks reacted to the financial crisis by
cutting interest rates significantly and supplying
huge amounts of liquidity. Both the Fed and the
ECB retained historically low interest rates in 2010.
Having initially planned to abandon this unconventional
monetary policy, the ECB changed tack as
the debt crisis escalated. For the first time, the
currency’s guardians agreed to the direct purchase
of government bonds.
Group management report
53

54
Group management report Development of business – January to December 2010
Results of operations
The loss of confidence on the part of investors in the
security of public finance again led in turn to considerable
uncertainty on the financial markets, which
could only be partly rectified through confidencebuilding
measures such as the bank stress tests and
the euro rescue system. Against this backdrop, the
situation remains difficult for financial institutions with
regard to new regulations. Particularly the structural
changes to banking business, increasing equity and
liquidity requirements (Basel III), regulatory conditions
1.1. – 31.12. 1.1. – 31.12. Change
in € million 2010 2009 1) in € million in %
Net interest income 725 862 – 137 – 16
Interest income 4,174 4,686 – 512 – 11
Interest expenses 3,449 3,824 – 375 – 10
Allowance for losses on loans and advances 105 185 – 80 – 43
Net interest income after risk provisioning 620 677 – 57 – 8
Net commission income 274 262 12 5
Fee and commission income 421 395 26 7
Fee and commission expense 147 133 14 11
Net income from hedge accounting 7 – 15 22 > 100
Net gain from financial instruments recognised at fair value through profit or loss 349 478 – 129 – 27
Net income from financial assets – 22 – 107 85 79
Net income from investments carried at equity 8 – 14 22 > 100
Other operating income 84 41 43 > 100
Administrative expense 1,003 985 18 2
Operating result before restructuring 317 337 – 20 – 6
Restructuring expenditure and income (net) 0 – 8 8 100
Operating profit / earnings before taxes 317 329 – 12 – 4
Income tax expense 52 64 – 12 – 19
Consolidated net profit for the period / earnings after taxes 265 265 0 0
Net profit/loss attributable to minority interests – 2 15 – 17 < – 100
Consolidated net profit for the period of the shareholders of the parent company 267 250 17 7
1) Figures for the previous year have been adjusted
for certain financial products, harmonising deposit
protection and the introduction of the bank levy to
finance a national stability fund are all posing new
challenges to the financial sector as a whole and
thereby to the Group as well. It is also foreseeable
that the implementation of changes in international
financial reporting standards and possible future
burdens such as the financial transaction tax and the
financial activity tax will have major financial and
organisational repercussions on the banking industry.

Earnings before taxes virtually matched the level of
the previous year. It should be noted that the effects
of the reversal of impairment losses in particular
had a positive impact on the net gain from financial
instruments recognised at fair value through profit
or loss in the previous year. The fall in net interest
income was offset by a sharp reduction in risk provisioning
and a positive trend in net income from
financial investments.
Group management report Development of business – January to December 2010 55
The individual earnings components of the Group
are presented in the following section:
At € 725 million, net interest income was down on
the strong previous year’s level of € 862 million. In
the previous year, changes in interest rates allowed
us to generate more income from money market
trading. Effects relating to the time value of money
to be reclassified in net income from financial instruments
recognised at fair value though profit or loss
also increased by € 65 million compared to the
previous year.
1.1. – 31.12. 1.1. – 31.12. Change
in € million 2010 2009 in %
Interest income
Interest income from receivables 1,848 2,281 – 19
Interest income from financial assets 554 914 – 39
Similar (interest) income from financial investments 10 12 – 17
Other interest income 1,762 1,479 19
Total interest income 4,174 4,686 – 11
Interest expenses
Interest expenses for liabilities 1,257 1,926 – 35
Interest expenses for subordinated liabilities 72 91 – 21
Similar (interest) expenses from financial assets 0 0 0
Other interest expenses 2,120 1,807 17
Total interest expenses 3,449 3,824 – 10
Net interest income 725 862 – 16

56
Group management report Development of business – January to December 2010
Overall, allowances for losses on loans and advances
resulted in a net expense of € 105 million. This
equates to a reduction of € 80 million year-on-year.
The economic recovery, which is reflected here, and
1.1. – 31.12. 1.1. – 31.12. Change
in € million 2010 2009 in %
Income from the reversal of write-downs on receivables and from
the reversal of provisions in the lending business
Depreciation and amortisation expense and write-downs of receivables
202 146 38
and additions to provisions in the lending business 307 331 – 7
Total 105 185 – 43
Net fee and commission income rose by € 12 mil-
lion year-on-year to € 274 million. In particular, this
benefited from the increased income from lending
and card business. Securities and issue business
posted stable development.
1.1. – 31.12. 1.1. – 31.12. Change
in € million 2010 2009 in %
Securities and issue business 75 73 3
Payment services / account management 95 102 – 7
Lending business 27 23 17
Card business 65 53 23
Other services 4 3 33
Other net commission income 8 8 0
Net commission income 274 262 5
Net income from hedge accounting totalled € 7 million
(previous year: € – 15 million) with a total volume
in effective hedges of € 34.1 billion.
Net income from financial instruments recognised
at fair value though profit or loss decreased yearon-year
by € 129 million, totalling € 349 million. The
reason for this is negative value adjustments triggered
by the expansion in credit spreads for the “PIIGS”
countries. While the held for trading (HFT) category
more favourable economic conditions led to lower
impairments and write-downs compared with the
previous year of € 24 million and more reversals
compared with the previous year of € 56 million.
fell by € 255 million to € 292 million, income from
financial instruments designated at fair value (FVO)
rose by € 126 million to € 57 million. Account must
be taken of the far more marked increase in value
in financial instruments in the previous year. As mentioned
above, net income from financial instruments
recognised at fair value through profit or loss corresponds
not insubstantially to the opposing effects in
net interest income (2010: € 366 million, previous
year: € 301 million).

Net income from financial assets improved as against
the previous year by € 85 million to € – 22 million.
The net figure is materially affected by the loss from
remeasurement of € – 25 million (previous year:
€ – 82 million). This was offset by a net gain on disposal
of € 3 million (previous year: € – 25 million).
Net income from investments carried at equity
increased by € 22 million to € 8 million (previous
year: € – 14 million). The previous year was reduced
by greater write-downs on an investment.
At € 84 million, other operating income was up
€ 43 million year-on-year. In addition to proceeds
from services by BankenService and income from
IT services, this item also includes income from
non-current assets held for sale. Income from the
disposal of promissory note loans (€ 11 million) is
also included.
Administrative expenses rose slightly by € 18 million,
or 2 %, to € 1,003 million. They include staff costs,
write-downs and other administrative expenses.
1.1. – 31.12. 1.1. – 31.12. Change
in € million 2010 2009 in %
Staff costs 551 537 3
Depreciation of property, plant and equipment and amortisation of intangible assets 55 62 – 11
Other administrative expenses 397 386 3
Total 1,003 985 2
Staff costs amounted to € 551 million after € 537 million
in the comparative year. Write-downs and other
administrative expenses were stable year-on-year at
€ 452 million in total. Overall, administrative expenses
remained below our expectations in the current
financial year.
In addition to current taxes of € 12 million, income tax
included expenses for deferred taxes of € 40 million.
The low tax rate of 16.4 % was essentially due to the
use of tax loss carryforwards.
1.1. – 31.12. 1.1. – 31.12. Change
in € million 2010 2009 1) in € million in %
Consolidated net profit for the period / earnings after taxes 2) 265 265 0 0
Net income recognised in equity 2) 31 468 – 437 – 93
Total comprehensive income 296 733 – 437 – 60
1) Figures for the previous year have been adjusted
2) including minority interests, see statement of changes in consolidated equity
Group management report Development of business – January to December 2010 57

58
Group management report Development of business – January to December 2010
Net income recognised in equity reduced by
€ 437 million compared with the previous year
(€ 468 million). The decrease is mainly attributable
to far lower increases in value compared to the
previous year in the case of AfS financial instruments
in connection with the financial market crisis.
Operating profit / earnings before taxes amounted to
€ 102 million in the fourth quarter of the 2010 finan-
cial year and increased by € 72 million compared
with the same quarter in the previous year. This was
the result, most notably, of the improvement in net
interest income and a marked reduction in risk provisioning.
Positive effects continue to be apparent in
net income from investments carried at equity and
in other operating income. On the other hand, net
income from financial assets and financial instruments
recognised at fair value through profit or loss fell.
Segment results
Operating profit in the Retail Banking segment
increased by € 76 million to € 149 million (previous
year: € 73 million).
At € 404 million, net interest income was up 13 % or
€ 47 million year-on-year. Deposit volumes grew by
7 % at the balance sheet date as against 31 December
2009 in the Retail Banking segment. Because of
the successful launch of new account models in 2009,
the number of new accounts opened rose to 89,200.
The number of accounts using these new models
rose to 716,400. The volume of mortgage loan renewals
grew by 22 % year-on-year to € 190 million.
Allowances for losses on loans and advances
reduced significantly by € 18 million to € 42 million.
This trend was significantly influenced by the positive
risk experience in credit card and consumer
loan business.
Net fee and commission income was down € 7 million
year-on-year at € 194 million. While net fee and
commission income from card business increased
by € 7 million, net fee and commission income from
payment transaction services was € 8 million lower
than in the previous year. Net fee and commission
income from securities business was slightly down
year-on-year (€ – 3 million). Sales of mutual funds
increased by 8 % year-on-year to € 339 million. The
growth in sales of insurance products continued. In
the year under review, net policy premiums were up
8 % year-on-year. Property insurance in particular
contributed to this growth with a marked increase
(+ 38 %). In national credit card business (co-branding),
both fee and commission income (+ 9 %) and
credit card accounts (+ 10 %) increased as against
31 December 2009.
A non-recurring effect from the sale of the ATOS
Worldline Processing GmbH investment was essentially
posted under other operating income.
At € 442 million, administrative expenses were up
€ 29 million on the previous year’s level. This includes
expenses for headcount reduction measures on
account of the planned implementation of new sales
structures and the greater expense for the IT migration
scheduled for 2011. Administrative expenses
include depreciation and amortisation of € 14 million
(previous year: € 15 million).

The Regional Corporate Banking segment achieved
an operating profit of € 107 million and conse-
quently exceeded the figure for the previous year
by € 19 million (previous year: € 88 million). The seg-
ment therefore continued its positive development
in 2010 as well.
Net interest income increased sharply year-on-year
by € 19 million to € 158 million. Allowances for losses
on loans and advances climbed compared with 2009
but remained at a low level overall, at € 6 million.
New lending volume rose by 30 % as against the
same period of the previous year. Nonetheless, the
portfolio of loans and advances to customers was
down on the figure of 31 December 2009 following
transfers to the Capital Markets segment. By contrast,
customer deposits increased slightly from their
already high level by € 70 million to € 5,119 million.
The number of customers fell slightly following
the transfer of management responsibilities to other
segments and amounted to some 64,400 as of
31 December 2010.
Net fee and commission income improved by € 8 million
to € 42 million. Income from export financing
business increased in particular.
At € 88 million, administrative expenses were only
slightly up on the previous year’s level (€ 86 million).
The operating profit of the Real Estate Financing segment
was € 172 million (previous year: € 191 million).
Group management report Development of business – January to December 2010 59
This result was heavily influenced by falls in net
interest income of € 37 million and in income from
financial instruments recognised at fair value through
profit or loss of € 61 million. The flattening of the
yield curve and fluctuations on the markets led to
corresponding reductions in the Treasury of Berlin Hyp
compared with the very profitable result in 2009.
The core business (commercial real estate financing
business) was very successful. Thanks to good figures
for new business and successful portfolio management,
net interest income increased to € 295 million
(previous year: € 267 million).
In 2010, the Real Estate Financing segment benefited
from positive developments in the German real
estate market and in European core markets. The
positive market sentiment is also reflected in the
segment’s new business. The contract volume rose
to € 6.3 billion, making it significantly higher than
the previous year’s result (€ 4.8 billion). At the same
time, our risk and margin requirements remained
unchanged. As at 31 December 2010, the portfolio
of loans and advances to customers in our core
business was up € 0.6 billion on the same period in
the previous year at € 26.3 billion.
Significantly lower allowances for losses on loans and
advances of € 74 million (previous year: € 140 million)
and the improved net fee and commission income of
€ 26 million (previous year: € 17 million) also had a
positive effect on the segment’s result.
Administrative expenses remained unchanged at
€ 115 million. As in the previous year, this figure
includes depreciation and amortisation of € 5 million.

60
Group management report Development of business – January to December 2010
The Capital Markets segment performed well in the
year under review and achieved an operating result
of € 213 million (previous year: € 215 million). Despite
the considerable volatility on international money
and capital markets, the result consequently came
close to that of the previous year.
The creditworthiness crisis in the euro zone led to
a marked expansion in credit spreads and consequently
to price falls in European government bonds
and financial securities (in particular, from the socalled
“PIIGS” countries, Portugal, Italy, Ireland,
Greece, Spain).
Net interest income fell by € 87 million compared with
2009 to € 346 million, mainly as a result of the drop
in income from money market activities. In the same
period of 2009, these had still benefited from the
special situation with interbank rates far exceeding
the ECB’s tender rates.
Net reversals of allowances for losses on loans and
advances, in particular, from the positive trend in
credit risks in the Structured Financing portfolio, which
is to be reduced, led to income of € 19 million in the
period under review. No significant risk provisioning
was recognised in the previous year. At € 18 million,
net fee and commission income was up by € 1 million
on the figure for the previous year in 2010.
Because of the market developments described, net
income from financial instruments recognised at fair
value through profit or loss was € 7 million down on
the same figure for the previous year with an earnings
contribution of € 6 million. At € – 24 million, net
income from financial assets was € 71 million up on
2009. At the same time, account must be taken of
the fact that the figure for the previous year was
reduced by impairment losses on funds and lower
carrying amounts for bonds held by German banks.
At € 155 million, administrative expenses were up
€ 10 million on the previous year’s level. Administra-
tive expenses include depreciation and amortisation
of € 6 million (previous year: € 7 million).
The market situation in recent months also influenced
customer business, with momentum having dwindled
considerably compared to the previous year.
In comparison with 31 December 2009 certificate
volume climbed € 0.4 billion to € 2.9 billion. At
€ 11.6 billion, the assets under management of LBB-
INVEST matched the level of the previous year.
In international business, lending volume of € 1.2 bil-
lion (up € 31 million) was recognised despite the
restrictions on lending business that still applied, in
part, during the year. This was achieved through
several larger transactions in the target region (Central
/ Eastern Europe and CIS), which was extended
to include Turkey in 2010.
The operating profit of the Interest Management
segment was € – 115 million (previous year: € 8 mil-
lion) in 2010.

The central management of the banking book is
reported in Interest Management. This is based on
items resulting from the Bank’s interest-bearing customer
business. Decisions in Interest Management
fall within the responsibility of the Asset Liability
Committee, which includes all of the members of the
Board of Management of Landesbank Berlin AG.
Resolutions are implemented by the units responsible
for the respective products in the Capital Markets
business area.
All of the market risks reported in the Interest Management
segment are included in the Bank-wide risk
management concept and limited accordingly.
During 2010, the low interest scenario remained intact
initially. The yield on ten-year German government
bonds fell to 2.12 % up to the end of August. Against
the background of the continuing economic stabilisation
in the euro zone – particularly Germany – capital
market interest rates subsequently rose sharply
but fluctuated markedly in the process. Given that
money market interest rates remained stable in view
of the European Central Bank’s keeping interest
rates low, the yield curve again became steeper at
the end of the year.
The reluctance previously seen in investments also
continued in this market environment.
Existing transformation risk positions suffered under
the trend in capital market interest rates described
and, in view of the momentum in the continuing rise
in interest rates, were hedged over the rest of the
fourth quarter.
Group management report Development of business – January to December 2010 61
Income was also depressed by the rapid growth in
the volume of floating rate customer deposits.
Their internal interest rate – derived from historically
valid interest rates – exceeded the neutralising
investment undertaken at current market rates in
Interest Management.
As a result of the financial reporting regulations on
categorisation, interest expenses in net interest
income are still offset by interest income from hedge
transactions in the net income from financial instruments
recognised at fair value through profit or loss.
In the period under review, the operating result in the
Other segment result benefited from the reversal of
provisions that were no longer required and improved
by € 39 million year-on-year to € – 206 million.
The Other segment comprises the Group’s management
and service functions. Services in the back
office and head office departments are recognised
at full cost by way of cost allocation. After cost
allocation, the operating profit in the Other segment
primarily consists of the overhead functions that
cannot be assigned to other segments in terms of
business management. Other items reported in this
segment include non-interest-bearing balance sheet
items, such as non-current assets and the associated
write-downs in administrative expenses in the
amount of € 28 million (previous year: € 28 million).
The Consolidation segment is used in particular to
report the services provided between the individual
segments of the Group.

62
Group management report Development of business – January to December 2010
ASSETS
Net assets
Total assets declined by € 12.3 billion as against the
end of 2009 to € 131.5 billion (31 December 2009:
€ 143.8 billion). A comparison at the reporting date
reveals a marked reduction in money market activities
in particular.
At € 16.8 billion, loans and advances to banks were
€ 5.7 billion down on the figure for the previous year.
The reduction related particularly to investments with
banks, which fell by € 4.7 billion. Promissory note
loans and public sector loans fell by € 0.8 billion in
total.
Loans and advances to customers decreased by
€ 2.1 billion or 4 % year-on-year to € 46.5 billion.
This was predominantly the result of public sector
loans falling due.
Allowances for losses on loans and advances were
reduced by € 58 million as against the previous year.
At € 1.2 billion, the positive fair values of derivative
hedging instruments were up € 0.2 billion on the
previous year (€ 1.0 billion).
The fair values of financial assets recognised at fair
value through profit and loss declined by € 0.4 billion
to € 17.2 billion as against 31 December 2009
(€ 17.6 billion). In addition to the portfolio changes, the
change in interest rates also impacted the figures
reported for derivative financial instruments.
Financial assets decreased by 8 % year-on-year to
€ 45.0 billion (previous year: € 48.7 billion) particularly
because of maturities.
31.12.2010 31.12.2009 Change
in € million in € million in %
Cash 830 1,342 – 512 – 38
Loans and advances to banks 16,750 22,461 – 5,711 – 25
Loans and advances to customers 46,468 48,592 – 2,124 – 4
Risk provisioning – 1,058 – 1,116 58 5
Positive fair value of derivative hedging instruments 1,182 983 199 20
Financial assets recognised at fair value through profit or loss 17,198 17,586 – 388 – 2
Financial assets 45,013 48,687 – 3,674 – 8
Investments carried at equity 90 106 – 16 – 15
Intangible assets 681 654 27 4
Property, plant and equipment 550 569 – 19 – 3
Investment property 59 86 – 27 – 31
Current tax assets 55 34 21 62
Deferred tax assets 720 795 – 75 – 9
Other assets 2,927 3,043 – 116 – 4
Non-current assets and groups of assets held for sale 12 13 – 1 – 8
Total 131,477 143,835 – 12,358 – 9

Shares carried at equity amounted to € 90 million
after € 106 million in the previous year. In particular,
changes were due to the disposal of a mutual fund.
Intangible assets increased by 4 % to € 681 million
(31 December 2009: € 654 million) and essentially
included goodwill of € 591 million (31 December 2009:
€ 591 million). The year-on-year increase is attributable
to work performed by the enterprise and capitalised
and purchases in connection with the conversion
of the core banking system to OSPlus.
Property, plant and equipment fell slightly by 3 %
from € 569 million to € 550 million.
Investment property was reported at € 59 million,
a € 27 million decrease on the previous year
(€ 86 million). The main factor here was real estate
sales during the period under review in particular.
LIABILITIES AND SHAREHOLDERS’ EquITy
Group management report Development of business – January to December 2010 63
At € 55 million, current tax assets were up by
€ 21 million overall as against the figure for the
previous year.
Deferred tax assets declined by € 75 million to
€ 720 million.
The € 116 million drop in other assets to € 2,927 mil-
lion is overwhelmingly due to the reduction in trade
receivables and reduced receivables from cash collateral
provided.
The figure shown in the item for non-current
assets and groups of assets held for sale related
mainly to the intended disposal of investments
and real estate.
31.12.2010 31.12.2009 Change
in € million in € million in %
Deposits by banks 32,840 41,370 – 8,530 – 21
Amounts due to customers 36,092 35,129 963 3
Securitised debt 24,695 28,657 – 3,962 – 14
Negative fair value of derivative hedging instruments 2,000 1,624 376 23
Financial liabilities recognised at fair value through profit or loss 27,669 28,321 – 652 – 2
Provisions 1,192 1,214 – 22 – 2
Current tax liabilities 120 136 – 16 – 12
Deferred tax liabilities 15 15 0 0
Other liabilities 1,884 2,113 – 229 – 11
Liabilities assigned to groups of assets held for sale 0 0 0 0
Subordinated capital 2,248 2,544 – 296 – 12
of which Dormant participations 700 700 0 0
Shareholders’ equity 2,722 2,712 10 0
Total 131,477 143,835 – 12,358 – 9

64
Group management report Development of business – January to December 2010
Deposits by banks declined by € 8.5 billion or 21 %
year-on-year to € 32.8 billion. The decline related to
money market transactions in particular.
Amounts due to customers increased by € 1.0 billion
or 3 % year-on-year to € 36.1 billion and the vast
majority of the increase related to term and demand
deposits.
The volume of securitised liabilities decreased by
€ 4.0 billion or 14 % year-on-year and is recognised
at € 24.7 billion. € 7.9 billion of this related to publicsector
mortgage bonds, € 8.3 billion to mortgage
bonds and € 7.9 billion to bonds.
Negative fair values of derivative hedging instruments
increased by € 0.4 billion to € 2.0 billion as
of the reporting date.
As a result of factors including portfolio changes
and changes in interest rates, the volume of financial
liabilities recognised at fair value through
profit or loss fell by € 0.6 billion to € 27.7 billion.
Provisions were stable year-on-year at € 1.2 billion.
Reversals and utilisation totalling € 0.1 billion were
offset by additions of more or less the same amount.
The measurement of pension obligations took into
account the adjustment in the discount rate to 5.4 %
(31 December 2009: 5.5 %), the salary trend (0.5 %
to 3.5 %, 31 December 2009: 3.0 % to 3.5 %), the
pension trend (1.0 % to 2.2 %, 31 December 2009:
1.0 % to 3.0 %) and the fluctuation rate. These
changes increased equity – before deferred taxes –
by € 31 million.
Income tax liabilities fell by € 16 million year-onyear
to € 135 million. They consisted of current
liabilities of € 120 million and deferred liabilities of
€ 15 million.
The other liabilities item decreased by € 0.2 billion
as against the previous year to € 1.9 billion and
included in particular liabilities from collateral received
(€ 1.7 billion).
Subordinated capital declined by € 0.3 billion as
against the previous year to € 2.2 billion and includes
subordinated liabilities (€ 1.5 billion) and dormant
participations (€ 0.7 billion). The decrease in the
reporting period is attributable to maturities of an
equal amount.
As of 31 December 2010, consolidated equity
totalled € 2.7 billion. It was, therefore, stable yearon-year
(see also the statement of changes in
consolidated equity). The consolidated net profit
(€ 265 million) and income recorded in the revaluation
surplus and retained earnings (€ 31 million)
resulted in growth. The revaluation surplus was
affected in particular by temporary fluctuations in
the value of available-for-sale securities and of
hedging derivatives for cash flow hedges. Reductions
in equity resulted from the dividend distribution
in accordance with the resolution of the Annual
General Meeting of Landesbank Berlin Holding AG
of € 140 million and in minority interests.
The overall capital ratio for liable capital reported at
the level of the RVG Group as of 31 December 2010
was 16.89 %; the Tier 1 capital ratio was 15.24 %.
The overall capital ratio of the RVG Group reported
on 31 December 2008 after the approval of the
annual financial statements of LBB and LBBH was
16.82 %; its Tier 1 capital ratio was 14.45 %. The

overall capital ratio for the LBBH Group as of
31 December 2010 increased to 12.82 % (31 Decem-
ber 2009: 11.79 %); its Tier 1 capital ratio grew to
10.12 % (31 December 2009: 8.50 %).
No securities were reclassified from the held-fortrading
and available-for-sale IFRS categories to the
loans and receivables category in accordance with
IAS 39.50 in 2010.
As of 31 December 2010, the amount of off-balance
sheet financing instruments after allowances for
losses on loans and advances totalled € 5.4 billion
(31 December 2009: € 5.7 billion). Off-balance sheet
financing instruments include primarily contingent
liabilities from guarantees and warranties and irrevocable
loan commitments.
Financial position
The liquidity management for banks is based on
principles derived from the German Banking Act. The
regulatory liquidity ratios were complied with at all
times to make sure that solvency was guaranteed
even in crisis situations. Furthermore, liquidity risk
controlling that goes beyond the Liquidity Ordinance
based on the procurement and maturity risk is also
performed. The basis for all liquidity risk assessments
is the capital maturity statement, which shows
the Bank’s cash flow profile. Utilisation of the limits
for both the procurement and the maturity risk was
not a problem during the course of the year. A detailed
presentation of liquidity risk management and controlling
is provided in the risk report. Please also see
the presentation on the cash flow statement.
Group management report Development of business – January to December 2010 65
In light of the ongoing tense situation on the refinancing
markets, the Group’s liquidity and refinancing
situation showed itself to be well ordered. Refinancing
was mainly effected by way of deposits by banks,
amounts due to customers and securitised liabilities,
mainly within Germany. As it was not possible to use
large volume issues economically on account of the
financial market crisis, LBB performed the majority
of the refinancing transactions in 2010 with the help
of private placements.
Reported equity was stable year-on-year. The development
of subordinated capital was characterised
by repayments of due subordinated liabilities. The
required minimum regulatory ratios of 8 % for the
overall capital ratio and 4 % for the Tier 1 capital ratio
were maintained at all times in the reporting year.
At the present time, we do not foresee restrictions to
the core business with our customers for reasons
of liquidity. The Sparkasse will remain available to all
customers in its traditional business without qualification.
Despite the difficult market situation, the
refinancing situation at the Group continues to allow
an ongoing expansion of business.
Effects of consolidation
The items of the consolidated income statement
and the consolidated balance sheet volume are primarily
determined by LBB and Berlin Hyp. Based on
the consolidated financial statements, 90.8 % of
total assets related to these companies (previous
year: 90.5 %).

66
Group management report
Events after 31 December 2010
The resolution by the Extraordinary General Meeting
of Berlin Hyp on 9 December 2010 to transfer the
minority shareholders’ shares to LBB in return for
adequate cash compensation (Article 327a (1)
Sentence 1 of the German Stock Corporation Act
(AktG)) was registered in the Commercial Register
on 25 January 2011. As a result LBB holds 100 %
of the shares in Berlin Hyp.
State aid proceedings under European law are
pending for WestLB AG, Düsseldorf. In compensation
for the aid received, the Federal Republic of
Germany has proposed a plan to break up WestLB
and wind it down in an orderly fashion in addition to
other alternatives to the European Commission. As
part of this scheme, certain of WestLB’s business
activities, which are of relevance to savings banks,
are to be transferred into a newly created Verbundbank
(associated bank), which will subsequently be
resold in parts over a longer period, transferred to
other units or wound-up. The German savings banks
and Landesbanks have already declared their willingness
to make a contribution to the establishment
of the Verbundbank as part of the overall scheme
and to become owners of the Verbundbank alongside
the savings bank associations in North Rhine Westphalia.
The precise details of the ownership structure
of the Verbundbank have not yet been determined.
It is possible that savings banks and Landesbanks
will participate in the Verbundbank via their deposit
guarantee schemes or issue guarantees in favour
of it. LBB would be involved in measures of this kind
as a member of the Deposit Guarantee Reserve of
the Landesbanks and Girozentralen.

Final statement on the dependent company report in accordance
with Article 312 of the German Stock Corporation Act
In accordance with Article 312 of the German Stock
Corporation Act, the Board of Management of
Landesbank Berlin Holding AG submitted a report
on business relations with affiliated companies
for the 2010 financial year. The declaration at the
end of this report is as follows:
“The Board of Management of Landesbank Berlin
Holding AG hereby declares that the Landesbank
Berlin Holding AG companies received appropriate
consideration for all legal transactions and other
measures with or at the instigation of or in the interests
of Erwerbsgesellschaft der S-Finanzgruppe mbH
& Co. KG, Beteiligungsgesellschaft der S-Finanzgruppe
mbH & Co. KG and Regionalverbandsgesellschaft
der S-Finanzgruppe mbH in accordance with
the circumstances known at the time of legal transactions
or measures and that these companies were
not disadvantaged by the measures taken.”
Group management report 67

68
Group management report
Risk Report
General conditions
The risk report of the Landesbank Berlin Holding
Group contains the information required under the
German Accounting Standards (GAS) and IAS / IFRS.
The Group is thereby exercising the regulation under
IFRS 7.B6, which allows bundling the information
required on the nature and extent of risks arising from
financial instruments in a risk report. Please see also
note 60 (Risk management). This also includes the
information on the internal controlling and risk management
system for accounting and financial reporting
in accordance with Article 315 (2) no. 5 HGB.
As the Group parent, Landesbank Berlin Holding AG
(Holding) essentially performs the function of a
financial holding company that does not perform its
own banking activities and is not a bank. Its central
activity is holding the 100 % interests in Landesbank
Berlin AG (LBB) and LBB-INVEST.
Owing to the fact that LBB is the parent company
of the financial holding group in terms of regulatory
law and all the banks in the Group are merged under
its umbrella, there is a high correlation between
the risks of the Landesbank Berlin Group and those
of the Landesbank Berlin Holding Group.
The established procedures, methods and systems
of the Group-wide risk management system proved
their worth in the reporting year and enabled us to
derive and implement appropriate risk management
measures at all times. The Group’s risk tolerance
was intact both according to our own internal standards
and in regulatory terms at all times.
In the reporting year, the effects of the discussed
heightened equity requirements for banks (Basel III)
were analysed. An implementation project was
launched. Its key goals are
to draft a specific implementation plan on the
basis of the final papers of the Basel Committee,
to specify the implementation requirements
with test calculations and to guide the consultation
process
to calculate new liquidity ratios
and
to continue ongoing activities (adjusting the
equity requirement for the trading book,
optimising weighted risk assets and adjustments
under MaRisk).
The requirements of the amendment to the Minimum
Requirements for Risk Management (MaRisk) from
2009, such as the implementation of Bank-wide,
all-risk stress tests and the monitoring of risk concentrations
in default risks, were implemented in full.
In December 2010, the BaFin finally published a
further new version of the Minimum Requirements
for Risk Management. The Group analysed the
new requirements and participated in the consultation
process. The main requirements concern the
aspects of
controlling liquidity risks and establishing
the liquidity reserve,
further requirements of stress tests,
risk inventory and risk tolerance
and
strategy process.

The new version entered into effect on publication,
though regulatory measures will be waived until
31 December 2011. The new requirements have
essentially been met and the necessary supplementation
will be completed within the deadlines set.
The liquidity risk management requirements for listed
banks entered into effect immediately on publication.
We are assuming that the liquidity reserve requirements
were already satisfied.
Principles for risk management and control
Risk strategy is part of the overall Bank strategy of
Landesbank Berlin Holding AG (the Holding) and
Landesbank Berlin AG (LBB) and is derived from the
general strategic conditions. It stipulates the provisions
with regard to taking risks. This includes
defining risk that does not comply with strategy, i.e.
risks that should be avoided. Compliance with the
risk strategy is monitored on an ongoing basis. The
companies and organisational units of the Group
are responsible for ensuring that all risks are transparent
and can be measured using uniform Group
methods.
The risk manual, which sets out the framework for
operational risk control and applies to both the Group
and the individual banks, provides detailed information
on conditions, responsibilities and methods for
the individual phases of risk management.
Acting as an independent unit, Risk Management
is responsible for identifying and evaluating risks,
supporting the Company’s risk management activities
and providing the Company’s management
with regular information.
The identification, measurement, assessment,
management, qualified and timely monitoring and
controlling of risks are carried out as per the requirements
of the risk strategy and the risk manual.
Responsibilities
The Board of Management as a whole is responsible
for the risk profile, risk strategy, risk tolerance concept,
the proper organisation of risk management,
the monitoring of the risk of all transactions and
risk controlling. The Board of Management regularly
reports to the Supervisory Board on the risk and
capital profile.
The Internal Audit department is a key component
of the business and independent monitoring system
in the Group. In terms of organisation, it is under
the CEO’s control and reports independently to the
Board of Management as a whole.
The Group features the following bodies in the risk
management process:
The Asset Liability Committee manages the strategic
market risk positions of the banking book.
The Capital Management Committee is responsible
for the coordination of capital measures
to implement statutory and accounting requirements
of capital management.
The Credit Risk Committee discusses and votes
on conceptual issues in the field of credit and
credit risk controlling.
The General Product Committee coordinates the
approval process for initiating trading in new
products, markets, product variants, currencies
and IT systems.
The OpRisk Committee is responsible for the
structural and organisational implementation of
a uniform risk management and early detection
system for operational risks.
Group management report Risk Report 69

70
Group management report Risk Report
The Risk and Controlling division is the independent
Group-wide risk monitoring unit for all risk types. This
division has authority over the methods and models
used to identify, measure, aggregate and limit risks
plus responsibility for the ongoing development of
the risk management system. Together with the risk
controlling units of the subsidiaries Berlin Hyp and
Landesbank Berlin International SA and the branches
in London and Luxembourg, Risk and Controlling
handles operative risk controlling. The division also
compiles and develops the monthly top management
report on the financial and risk position of the Group.
Responsibility for operative risk management within
the meaning of the taking of positions is assigned
to defined officers within the Group. For example,
the Board of Management as a whole is responsible
for Bank-wide risk management, the trading units
in Capital Markets for market price risk controlling
and the Asset Liability Committee for risk controlling
for the banking book. Credit risk controlling for
individual borrowers is performed by the respective
decision-makers as per the schedule of responsibilities;
Treasury is responsible for liquidity risks.
Overall risk management
In accordance with the Group’s business policy, the
Board of Management performs risk limitation and
allocation for the various companies and organisational
units of the Group by implementing limits
and structural requirements, taking into account
economic risk tolerance and the regulatory rules.
The Finance and Risk and Controlling divisions report
in the monthly joint top management report. In
addition to the financial analysis, this contains risk
reporting in line with MaRisk. On the basis of the
top management report and the Supervisory Board
report, which summarise all risk types, the meetings
of the Board of Management and the Supervisory
Board discuss the current overall risk situation and
the extent to which any reaction is required.
The Group defines significant risks within the meaning
of MaRisk as risks whose effects are severe
enough to endanger the entire Group as a going
concern. These include:
counterparty risks (including country risks),
participation risks,
liquidity risks,
market price risks, (interest rate risks including
cash flow and fair value, currency risks, share
price risks),
real estate risks and
operational risks.
The definition of participation and real estate risks
as significant risks takes into account the specifics
of the Group beyond MaRisk and market standards.
For the purposes of risk tolerance, these risk categories
are divided into monetary and non-monetary
risks. Monetary risks are included in the quantitative
combination forming total risk (internal risk tolerance
concept).
Liquidity risk is assigned to non-monetary risks as
it is a “timing problem” and not an asset loss risk.
It cannot be prevented by allocating risk capital.

In addition, for risk tolerance analyses, when significant
risks, i.e. potential losses of assets not yet
taken into account, are identified, they are reported
separately under remaining risks.
At Group level, risks are controlled and monitored
at Group level by breaking down all companies into
a graded concept. As an element of the graded
concept, the concept of the internal scope of consolidation
ensures that a process is defined for all
material risks that satisfies the MaRisk of risk management
at Group level. For the companies included
in this concept, risks are analysed individually by
risk category in line with the transparency principle.
All other investees and investors not included in this
concept are presented as participation risks. The
graded concept is reviewed regularly. This ensures
that economically significant risks are included in
risk management.
The internal risk tolerance concept is composed of
a system of measurement procedures and limits for all
material risks which can be covered by risk capital
(monetary risks) that ensures down to a small residual
possibility that a defined maximum asset loss is not
exceeded. The assumptions this is based on, and
the corresponding limits, are reviewed on a regular
basis, at least once a year, and adjusted by way of
Board of Management resolution if necessary. On
the basis of the individual risk types identified, the
overall risk is calculated by aggregating the individual
risks, taking into account diversification effects
between the risk types. The overall risk situation was
measured by comparing the capital available to cover
risks (aggregate risk cover) with the total risk. The
assessment of the overall risk situation is rounded off
by taking into account the results of various stress
tests that include both risks and capital.
To be able to interpret risk assessments more
accurately, the risk to the Bank as a whole is calculated
for various confidence levels. The results are
compared with various loss scenarios (e.g. loss
equal to the planned results for the year, falling short
of the overall capital ratio required by the supervisory
authorities).
In accordance with Article 27 of the German Pfandbrief
Act, each pfandbrief bank must have a risk
management system suitable to its pfandbrief business.
Risk management for coverage funds is
included in the Group’s Bank-wide risk management
system for default, market price and liquidity risks
plus operational and other risks. There are also
limits to ensure compliance with regulatory requirements.
Compliance with these limits for risk management
of coverage funds is monitored daily and
included in the monthly top management report of
the Board of Management. The Board of Management
of Berlin Hyp is notified of compliance with
regulatory and internal limits quarterly in a separate
report.
Capital management
The aim of the capital strategy is to ensure appropriate
regulatory and economic capital resources in
the medium and long term. This is done by analysing
changes in the regulatory environment and rating
agency requirements, taking any necessary measures
into account in the annual planning process and
implementing them as necessary. The key target
values are a Tier 1 capital ratio of at least 8 %, an
overall capital ratio of at least 10 % and a minimum
rating in the single A range. Group-wide capital
management is handled by the Capital Management
Committee.
Group management report Risk Report 71

72
Group management report Risk Report
Regulatory equity components of the Group
Regulatory equity resources are determined on the
basis of HGB accounting for the companies included
in the regulatory scope of consolidation and differ
therefore from accounting equity.
As at 31 December 2010, the term “dormant participations”
was struck from the German Banking Act
(KWG). Capital provided to a bank on this basis can
now only be counted to a limited extent. Under the
transitional regulations of the KWG, the € 700 million
provided to LBB AG can still be counted 100 %
until 31 December 2020. The KWG will be amended
again on the implementation of Basel III. The current
transitional regulations of the KWG will probably
be changed significantly as at 31 December 2012.
From 31 December 2010, it will be reported under
“Other capital” and will no longer be a component
of capital paid in.
Equity structure of LBBH in € million 31.12.2010 31.12.2009
Capital paid in 2,557 2,557
Contributions by dormant partners 0 700
Capital reserves 537 274
Other eligible reserves – 978 – 925
Other capital 700 0
Positive goodwill in line with Article 10a (6) 776 795
Intangible assets – 75 – 44
Special reserve for general banking risks in line with Article 340g HGB 6 0
Other deductions in line with Article 10 (2a) – 302 – 284
Tier 1 capital for solvency purposes 3,221 3,073
Tier 2 capital for solvency purposes (Article 10 (2b) KWG)
and Tier 3 capital (Article 10 (2c) KWG) 860 1,186
For information only:
Total capital deductions (in line with Article 10 (6) and (6a) KWG) – 603 – 568
of which deductions in line with Article 10 (6a) 1 and 2 KWG – 376 – 294
Modified available equity and eligible Tier 3 funds 4,081 4,259
Information on equity components in line with IAS /
IFRS can be found in note 19 (Equity) in the annual
financial statements of the Group.

Internal capital adequacy
The development of risks and risk cover assets are
taken into account in medium-term planning and are
also integrated into other processes, such as the
planning of capital measures. Planning is conducted
in line with the foreseeable risk and capital effects
at both strategic division and Group level with the
aim of ensuring risk tolerance in the planning period.
The Group’s internal risk cover assets are defined on
the basis of IFRS equity plus an appropriate portion
of subordinated capital. To avoid volatility in risk
cover assets not relevant to controlling, the revaluation
surplus is carried at an average value for the
last dates of the last three months. The Group’s risk
cover assets amounted to € 4,238 million as at
31 December 2010 (previous year: € 4,365 million).
Credit risk
Participation risk
Market price risk
Operational risk
Real estate risk
Remaining risks
Correlation
Total risk
Excess
Aggregate risk cover
937
17
441
120
73
68
– 410
1,246
The risk tolerance was assured throughout the
reporting period both in terms of utilisation and of
theoretical full utilisation of the current total limit.
To ensure risk tolerance, there is a limit system and
escalation processes based on this system. If risk
limits are approached (this is generally taken to mean
utilisation of more than 90 %), the Board of Management
shall decide on measures to prevent limits
being exceeded.
Utilisation by risk type, overall risk and the resulting
unutilised coverage within the Group as at 31 December
2010 were as shown:
2,992
4,238
0 1,000 2,000 3,000 4,000 5,000
Group management report Risk Report 73
Utilisation by
risk type for the
Group as at
31 December 2010
in € million

74
Group management report Risk Report
31.12.2010
The Group’s stress tests are performed on the basis
of five scenarios using a uniform procedure. This
assesses the effects on the main income and risk
data and thereby on accounting, economic and
Excess risk
tolerance
in € million
regulatory capital and regulatory capital ratios.
Regulatory and economic risk tolerance remained
intact at all times.
SolvV Tier 1
capital ratio
% points
SolvV overall
capital ratio
% points
Normal 2,992 10.1 12.8
Stress test changes
Recession stress scenario – 1,106 – 2.4 – 3.9
SolvV: German Solvency Ordinance; the table contains figures after approval
In the “recession” scenario shown simulates the
biggest impact on ratios. Based on the requirements
of MaRisk, the parameters of this scenario correspond
to a severe economic crisis. The effects are
mainly due to the changes in credit risk and market
price risk.
The calculated theoretical increase in credit risk
provisions and credit risk caused a change in
excess risk tolerance of around € – 600 million of
the € – 1,106 million reported here. – 1.3 percentage
points of the change in the Tier1 capital ratio
reported above (– 2.4 percentage points) are due
to credit risk.
The theoretical changes in the results of market
price risk caused a change in excess risk tolerance
of around € – 430 million of the € – 1,106 million
reported here. – 1.0 percentage points of the change
in the Tier 1 capital ratio reported above (– 2.4 percentage
points) are due to the market price risk.
Furthermore, a process has been established to
identify, report and manage risk concentrations.
Regulatory capital adequacy (German
Solvency Ordinance)
Owing to the acquisition of the Holding by S-Erwerbsgesellschaft
in 2007, the LBBH Group belongs to the
RVG Group in regulatory terms. Please see the regulatory
ratios at the level of LBB as a single bank and
for the LBBH and RVG Groups below.

The information shown on the overall capital ratio
and the Tier 1 capital ratio relates to the figures
reported to the regulatory authorities as at the
respective reporting date. As at 31 December 2010,
figures after approval of the annual financial statements
are shown for LBB and LBBH Group. The
regulatory equity resources of the LBBH Group (LBB)
amounted to € 4,081 million after approval as at
31 December 2010 (€ 3,405 million). The change in
the overall capital ratio and the Tier 1 capital ratio as
at 31 December 2010 results from the extraordinary
write-down of 11 % recognised by Erwerbsgesellschaft
on the carrying amount of shares held in the
Holding.
The required minimum regulatory ratios of 8 % for the
overall capital ratio and 4 % for the Tier 1 capital
ratio were maintained at all times in the reporting year.
Parallel to the calculation of equity requirements in
line with the German Solvency Ordinance (SolvV),
Principle I was also calculated to provide the regulatory
floor.
Capital backing in line with Principle 1 is multiplied
by the current floor of 80 %, taking into account
the write-down comparison and the expected loss
for investments, and is compared against the Bank’s
equity capital. The value of equity cannot be exceeded.
This requirement was complied with at all
times in the reporting year.
Landesbank Berlin was one of 14 German banks to
take part in EU-wide regulatory stress tests. The Tier 1
capital ratio of our Bank in the adverse scenario of
this stress test taking into account the sovereign risk
shock was 11.2 % and therefore significantly higher
than the supervisory authorities’ target level of 6 %.
25.0
20.0
15.0
10.0
5.0
25.0
20.0
15.0
10.0
5.0
January 2010
January January 2010
February 2010
February February 2010
March 2010
March March 2010
April 2010
April April 2010
May 2010
May May 2010
June 2010
June June 2010
July 2010
July July 2010
August 2010
August August 2010
Group management report Risk Report 75
September 2010
September September 2010
October 2010
October October 2010
RVG 16.9
LBB 15.0
LBBH 12.8
November 2010 2010
November 2010
December 2010 2010
RVG 15.2
LBB 11.4
LBBH 10.1
December 2010
Overall capital
ratio (SolvV) in %
Tier 1 capital
ratio (SolvV) in %

76
Group management report Risk Report
Counterparty default risk
Counterparty default risk is defined as the risk of
loss or forgone profit as a result of default by a business
partner. This definition includes the risk that a
contractual partner of the bank does not meet its
obligations or does not do so in a timely manner or
that the bank itself must meet an obligation on
account of the non-performance of a third party, as
well as the participation risk arising from the provision
of equity. In the commercial credit business, the
counterparty default risk when granting book loans
is identical to the credit risk. If the asset held is a
security instead of a book loan, the risk in question
is an issuer risk. If the asset held is a security instead
of a book loan, the risk in question is an issuer risk.
Other types of risk included under risk of default,
and that are standard in trading business in particular,
are counterparty risk (risk of potentially disadvantageous
re-coverage of a derivative transaction in the
event of default by a business partner), settlement
risk (risk that no counterperformance occurs on
settlement of a transaction in spite of performance)
and country risk (transfer risk).
The aim of any transaction is to contribute to the economic
performance and thereby the ongoing valueadded
of the Group. Transactions are only permitted
within existing limits for the default risk entailed with
the exposure. Specific processes apply to the granting
of trading limits. Risk concentrations in terms
of specific counterparties (“clusters”), regions and
sectors should be kept as low as possible.
The measurement and management of counterparty
default risks in the Group is based on a risk-adequate
presentation of transactions subject to credit
risk. Credit risks and counterparty and issuer risks
are measured specifically to each product and quantified
using the current credit exposure (CCE). The
internal reporting of credit risks to management is
essentially based on this factor. In line with this and
in accordance with IFRS 7.34 (a), the presentations
used internally are used below.
On account of the risk content orientation of positions
there are quantitative differences for some
products between the current credit exposure and
the receivable volume for accounting purposes:
For trade transactions including transaction with
securities and derivatives, the current credit exposure
is calculated on the basis of counterparty,
issuer and borrower risks. In addition, add-ons are
included for potential future exposure for counterparty
risks.
Risks are mitigated by netting agreements and
by offsetting long and short positions for issuer
risks or by compensation agreements.
Passed-on development loans that do not represent
a risk for the Group are not included.
In line with the method differences shown, the current
credit exposure can be reconciled to recognised
assets. It should be noted that recognised assets
also include items not subject to counterparty risk,
e.g. intangible assets or property, plant and equipment.
The following table shows the key differences
to the recognised assets.

140.0
135.0
130.0
125.0
120.0
115.0
110.0
105.0
100.0
The Group’s entire CCE as at 31 December 2010
was € 112 billion. Around € 39 billion of this related
to credit risks from commercial lending business
quantified on the basis of remaining carrying amounts.
Issuer, counterparty and borrower risks of capital
market transactions are based on the market prices
of the financial instruments and are included in CCE
in the amount of € 74 billion.
STRATEGIC DIVISION
Current
Credit
exposure
112.2
Add-on
4.2
Netting
8.5
Offset
7.3
Compensation
0.8
Pass-through
loans
0.1
Measurement
differences
1.1
Difference for
amortised cost
0.3
Balance sheet
items excluding
counterparty
default risk
7.7
Total assets in
line with IFRS
(LBBH Group)
131.5
The majority of CCE related to the Capital Markets
and Real Estate Financing segments.
In addition to CCE, credit exposure is also considered
below. This additionally includes limits promised to
customers that have not yet been drawn. These limits
include both revocable and irrevocable commitments.
In line with the above composition of credit exposure
and CCE, the breakdown for the Group’s strategic
divisions as at 31 December 2010 was as follows:
Credit exposure Current credit exposure Credit risks Issuer, counterparty,
borrower risks
in € million 2010 2009 2010 2009 2010 2009 2010 2009
Retail Banking 11,005 10,617 4,879 4,624 4,019 3,875 860 750
Regional Corporate Banking 6,877 7,040 4,940 5,053 4,940 5,053 0 0
Real Estate Financing 51,000 53,196 47,802 50,419 27,151 26,898 20,651 23,521
of which mortgages 29,980 28,771 26,971 26,062 26,971 26,062 0 0
Capital Markets 42,996 45,655 42,634 45,284 2,390 3,568 40,244 41,716
Miscellaneous 11,994 13,804 11,994 13,803 2 2 11,991 13,801
LBBH Group 123,871 130,312 112,248 119,183 38,502 39,396 73,746 79,787
In this table and all following tables, figures have been rounded up / down, meaning that it may be the case that the figures provided for the totals differ slightly
from the sum of the individual items.
Group management report Risk Report 77
Other
0.1
Reconciliation:
current credit
exposure to
balance sheet
assets
in € billion

78
Group management report Risk Report
CCE REGIONAL DISTRIBuTION
The Group primarily enters into credit risks in Berlin
and the Federal Republic of Germany and, to a small
extent, in the rest of Europe. In commercial Real
Estate Financing, the Group provides support for
2010
in € million
2009
in € million
The industry breakdown is similar: the portfolio
of credit risks is largely determined by real estate
finance and sectors with retail and corporate
Credit risks Issuer, counterparty, borrower risks
2010
in %
2009
in %
2010
in € million
2009
in € million
Germany 32,062 32,386 83 82 37,037 39,639 50 50
Berlin 14,104 14,896 37 38 4,850 4,313 7 5
Former West German states 13,458 12,962 35 33 29,225 32,332 40 41
Former East German states 4,501 4,528 12 11 2,962 2,994 4 4
International 6,389 6,923 17 18 36,709 40,147 50 50
EU 4,403 4,290 11 11 27,721 40,147 38 50
Rest of world 1,986 2,633 5 7 8,988 0 12 0
Miscellaneous 51 87 0 0 0 0 0 0
CCE LBBH Group 38,502 39,396 100 100 73,746 79,787 100 100
CCE INDuSTRy BREAKDOWN
2010
in € million
2009
in € million
2010
in %
Credit risks Issuer, counterparty, borrower risks
2010
in %
customers with lending properties in Germany and
selected international markets. The Capital Markets
division predominantly leads to issuer, counterparty
and borrower risks in Germany and abroad.
2009
in %
2010
in € million
2009
in € million
Real estate financing 21,827 20,373 57 52 310 273 0 0
Banking industry
Business discharged
3,553 4,493 9 11 51,789 58,182 70 73
from liability (DetV) 2,628 3,450 7 9 1,940 14 3 0
Private individuals 3,779 3,801 10 10 0 1 0 0
Trade and commerce 2,305 2,084 6 5 356 587 0 1
Services 2,378 2,486 6 6 327 1,139 0 1
Health and social 837 816 2 2 1 1 0 0
Regional authorities 340 566 1 1 18,194 18,762 25 24
Participation companies 474 723 1 2 438 421 1 1
Insurance 28 26 0 0 120 131 0 0
Chemicals 26 25 0 0 116 123 0 0
Miscellaneous 328 551 1 1 154 153 0 0
CCE LBBH Group 38,502 39,396 100 100 73,746 79,787 100 100
2010
in %
2009
in %
customer business. In particular, issuer and counter-
party risks are entered into with banks and regional
and local authorities.
2009
in %

The breakdown by remaining term clearly shows our
exposure in real estate financing in the area of credit
risks over one year.
CCE REMAINING TERMS
2010
in € million
2009
in € million
The table below shows the Group’s total exposure in
those countries where public debt caused them to
become the centre of attention in 2010. The share of
Credit risks Issuer, counterparty, borrower risks
2010
in %
2009
in %
2010
in € million
2009
in € million
less than three months
between three months
6,162 6,426 16 16 6,606 7,852 9 10
and one year 1,720 2,380 4 6 9,175 10,193 12 13
between one and five years 12,022 9,981 31 25 41,497 42,629 56 53
more than five years 18,598 20,609 48 52 16,468 19,113 22 24
CCE LBBH Group 38,502 39,396 100 100 73,746 79,787 100 100
CCE OF SELECTED STATES
government finance here amounts to 4 % of the
Group’s exposure in all EU countries.
31.12.2010
in € million Current credit exposure Net CCE
Greece
Non-government borrowers 51 155
State
Ireland (Republic)
364 364
Non-government borrowers 1,188 1,059
State
Italy
0 0
Non-government borrowers 2,916 2,940
State
Portugal
510 510
Non-government borrowers 239 388
State
Spain
0 0
Non-government borrowers 3,317 3,188
State 404 460
CCE of selected states 8,989 9,064
The net CCE consists of the current credit exposure less collateral plus risk transfer from guarantees (guaranteed issues and credit insurers).
Group management report Risk Report 79
2010
in %
2009
in %

80
Group management report Risk Report
Risk mitigation
Various risk mitigation elements are used in the Group
to reduce counterparty default risks. The key element
for credit risks are physical and personal collateral
with a total value of around € 31 billion. In addition,
counterparty risks from trading activities are reduced
by way of agreements on close-out netting in the
amount of around € 8 billion. This procedure makes
it possible to offset receivables and liabilities in the
event of a deterioration in the counterparty’s credit
rating, even if the counterparty becomes insolvent. In
addition, other risk-minimising measures such as the
conclusion of credit derivatives and the exchange of
collateral are carried out in trading. Credit derivatives
in the amount of around € 5 billion and collateral with
a volume of around € 2 billion are taken into account.
Responsibility for collateral management lies with
back-office. Back-office is responsible for recognising,
checking and regularly assessing collateral and for
managing credit risk mitigation techniques. In addition,
collateral is entered and managed in a central,
computer-aided collateral system.
The portfolio and value of collateral are checked at
set monitoring frequencies depending on its type.
Testing is normally performed annually, or at shorter
intervals for critical exposures. Collateral is remeasured
in this context if necessary.
LBB implemented real estate monitoring in line with
Article 20a (6) KWG. The values of German and
international real estate are reassessed every three
years or upwards of a residual loan amount and
collateral value of € 1.5 million. Reasons for an ad hoc
measurement include a default of 90 days, knowledge
of a drop in the market value of the property or
a rating deterioration. The market fluctuation concepts
of the Central Credit Committee for residential
and commercial real estate are applied. In line with
the strategic orientation of Real Estate Financing,
the portfolio and therefore most of the collateral lie
in the former West German states.
Credit risk measurement procedure
The credit rating of each borrower is estimated on
an ongoing basis using internal rating and scoring
procedures. The rating and scoring procedures are
calibrated to probabilities of default and lead to
classification within the 25-level rating master scale.
This master scale is applied in all strategic divisions
and allows comparisons of borrower credit ratings
across segments.
The Group uses customer group-specific rating and
scoring procedures on a statistical basis which it
has developed in projects with other Landesbanks,
the German Savings Banks and Giro Association
(DSGV) or other specialised service providers. The
quality of the procedures is regularly reviewed and
optimised by credit risk controlling. Credit risk controlling
performs the functions of the counterparty
risk monitoring unit as defined by Article 152 SolvV.
Probability of default and the level of collateral of
an exposure are compiled to form a risk class for
internal controlling. The 25-level master scale is also
used for these. The risk class is a key criterion of
lending guidelines for the intensity of credit monitoring
and determines responsibility for the loan.

In line with the risk class, the portfolio can be
broken down into:
good loans risk class (1 to 12),
sub-performing loans risk class (13 to 15),
non-performing loans risk class (16 to 18).
Quantitative analysis of default risks using statistical
procedures is carried out for lending portfolios on
the basis of the credit portfolio model developed by
the Bank. This model, which is based on a Groupspecific
adaptation of standard models, enables
aggregation of borrower-specific risks of default for
a risk indicator at portfolio level, the credit value at
risk (CreditVaR). This figure is calculated daily on the
basis of confidence levels of 90 % and 99.9 % with
a holding period of one year for the main Group,
sub-bank and business area portfolios. It is included
in the monthly top management report and in risk
tolerance calculations.
CREDIT quALITy
Risk class
On the basis of credit-specific exposure, the rating,
the collateral and correlation estimates, the credit
portfolio model estimates the probability of major
losses as a result of correlated credit default. Owing
to its structure, the model used reacts sensitively to
cluster risks or industry concentrations and also
takes into account the risk of country-transfer events.
The highest risk concentrations are presented in the
Group’s credit risk report. This is supplemented by a
detailed breakdown of risk concentrations submitted
to the Board of Management on a monthly basis.
The credit portfolio model was comprehensively
revised in 2010. A key change was providing the
model with a “migration mode”. This allows the
model to take into account changes in the value
of capital market-based financial instruments on
account of rating migrations. The new version of
the model was first used at the start of 2011.
Credit quality
The following table shows the credit quality of financial
assets that are neither past due nor impaired,
grouped according to their risk class.
Credit risks
Group management report Risk Report 81
Issuer, counterparty,
borrower risks
in € million 2010 2009 2010 2009
1 – 3 23,681 22,648 71,487 76,494
4 – 7 5,611 6,713 1,447 2,287
8 – 12 4,214 3,910 396 528
13 – 15 895 997 146 136
no risk class available 400 469 217 212
CCE of LBBH Group – neither past due nor impaired 34,801 34,738 73,693 79,658
Share of total CCE of LBBH Group 90.4 % 88.2 % 99.9 % 99.8 %
CCE LBBH Group – total 38,502 39,396 73,746 79,787

82
Group management report Risk Report
Credit monitoring
The Group uses various manual and automatic
methods to monitor the specific risk of borrowers in
order to detect credit risks at an early stage and
actively manage them. Generally, borrower ratings
are updated at least once per year. Within this
framework, portfolios and the impairment of collateral
are also regularly monitored and may be subject
to remeasurement. In the event of rating deterioration,
a decision is made as to the nature of the
continued exposure.
The Group uses early warning systems to identify
enhanced risk borrowers. Based on quantitative and
qualitative early warning indicators, corresponding
watch lists are prepared listing borrowers to be
examined separately.
The Group updates and refines the quality of its
credit monitoring on an ongoing basis to accelerate
decision-making processes and to improve the
quality of the available information for recognising
and measuring potential risks. Credit business, the
implemented risk measurement methods and in
particular the credit processes are regularly reviewed
by the internal audit department. Measures are
derived from this to improve further the quality of
credit analysis and monitoring.
Risk limitation
Counterparty default risks are limited and managed
at the level of individual borrowers and at portfolio
level as part of strategic credit portfolio management.
Individual borrower limits
Counterparty default risks are limited at specific
borrower level by individual limits for borrowers for
the parameters of amount, term and type of transaction.
These limits are systematically tracked and
subjected to a daily MaRisk process.
In retail credit business, which covers standard
credits such as instalment loans and overdraft
facilities, largely computer-based methods are used
for approval. For larger exposures, a vote by backoffice
is also required. For business not settled in
standardised processes, individual credit decisions
are made in clearly defined processes depending
on the amount of exposure and risk content. Larger
exposures are generally decided on and processed
by back-office.
Portfolio management
New business and the lending portfolio are limited
on a daily basis by portfolio limits on the basis of
the credit portfolio model. For this purpose, limits
are also in place for the expected loss and the
unexpected loss at various confidence levels for the
portfolios of the strategic divisions plus those of
the sub-banks and the Group.
The unexpected loss at a confidence level of 99.9 %
is included in risk tolerance. The Group’s expected
loss, unexpected loss (99.9 %) and its limit throughout
2010 are shown below. The fluctuation in unexpected
loss in July was due to a shift in credit exposure.
The reduction in unexpected loss (99.9 %) in
September is due to the default of a major borrower.
Once defaulted, borrowers are no longer included
in the calculation of credit risk ratios, which decline
as a result. The value corrections on exposures are
counted towards risk cover assets in the context of
credit risk provisioning processes.

1800
1600
1400
1200
1000
800
600
400
200
0
1800
1600
1400
1200
1000
800
600
400
200
0
1,800
1,600
1,400
1,200
1,000
800
600
400
200
January 2010
Country and transfer risks are also limited using volume-based
country limits. The limits are determined
by the Board of Management with consideration of
economic influences and the actual development of
the lending portfolio.
Country limits restrict the net potential future exposure
(net PFE), which is equivalent to the CCE
Foreign volume
February 2010
March 2010
April 2010
May 2010
including add-ons, after taking collateral into account.
In the autumn of 2010, the Group resolved to also
introduce country limits for some EU countries, particularly
Portugal, Spain, Ireland, Italy and Greece.
As presented below, this led to a strong reduction in
net PFE in the unlimited euro zone and to an increase
in values for the limited international volume with a
low transfer risk.
Net PFE
in € million 2010 2009
Without limits of foreign volume 26,980 39,253
Euro zone 11,762 23,304
Rest of EU 8,233 8,022
Europe 1,466 1,538
North America 5,519 6,389
Limited foreign volume with 12,498 2,058
low transfer risk 12,159 1,695
medium transfer risk 296 314
high transfer risk or no rating 43 49
Group 39,478 41,311
In addition to these limits, regular reports are submitted
on the lending volumes according to other
categories. A separate voting unit of Risk Management,
which gives an additional vote for loan
June 2010
Unexpected loss Limit of unexpected loss Expected loss
July 2010
August 2010
September 2010
October 2010
November 2010
December 2010
commitments for which the full Board of Management
is responsible, checks the portfolio compatibility of
a major commitment.
Group management report Risk Report 83
Group Credit-
Value-at-Risk
ratios
in € million

84
Group management report Risk Report
Handling problem credits
Problematic loan commitments generally fall within
the processing competence and responsibility of
the credit risk divisions in which these loans were
reorganised or liquidated. In case of restructuring,
the conditions of loans with a CCE of € 77.4 million
were amended without recognising a write-down.
AGE STRuCTuRE OF CREDIT RISK
per 31.12.2010 Age Total Collateral 1) Write-downs 2)
in € million < 1 year 1 – 5 years 5 – 10 years > 10 years
Good loans 4,707 13,551 3,497 12,853 34,608 28,499
of which in arrears 196 117 57 304 674
of which performance in arrears 0 2 3 90 96
Sub-performing 118 511 45 473 1,146 805 117.6
of which in arrears 6 53 7 86 151
of which performance in arrears 0 15 0 65 80
Non-performing 432 1,012 291 1,012 2,748 1,680 953.6
of which in arrears 134 200 2 58 394
of which performance in arrears 1 15 0 8 23
Credit risk of LBBH Group 5,257 15,074 3,833 14,338 38,502
of which in arrears 336 370 66 448 1,220
of which performance in arrears 1 32 3 163 199
Below, portfolios with credit risks are broken down
into good loans, sub-performing and non-performing
loans and by the age of the receivable. In addition,
the exposure of borrowers that are in arrears but
that have not been written down are also reported.
At the same time, the amount of performance in
arrears for these sub-portfolios is also stated.
The CCE and, in particular, the performance in
arrears of non-performing loans have been largely
shielded by specific allowances for impairment
losses and provisions and also as a result of the
weighting of collateral.
1) In line with regulations on recognised collateral and other economically eligible shielding
2) For good loans and sub-performing loans: portfolio and country valuation allowances;
for non-performing loans: specific allowances for impairment losses, specific impairment allowances calculated on a portfolio basis and provisions

AGE STRuCTuRE OF CREDIT RISK
Prior-year comparative figures
per 31.12.2009 Age Total Collateral 1) Write-downs 2)
in € million < 1 year 1 – 5 years 5 – 10 years > 10 years
Good loans 5,074 16,037 4,178 9,762 35,050 26,932
of which in arrears 184 684 72 369 1,310
of which performance in arrears 1 9 10 120 140
Sub-performing 321 513 50 421 1,305 842
146
of which in arrears 112 54 6 136 307
of which performance in arrears 0 10 0 95 105
Non-performing 243 1,191 395 1,212 3,041 2,002 988
of which in arrears 27 95 4 84 210
of which performance in arrears 0 10 1 16 27
Credit risk of LBBH Group 5,638 17,741 4,623 11,395 39,396
of which in arrears 323 834 82 588 1,827
of which performance in arrears 1 28 11 231 271
1) In line with regulations on recognised collateral and other economically eligible shielding
2) For good loans and sub-performing loans: portfolio and country valuation allowances;
for non-performing loans: specific allowances for impairment losses, specific impairment allowances calculated on a portfolio basis and provisions
On account of the largely low-risk structure of
issuer, counterparty and borrower risks, there are
practically no sub-performing or non-performing
loans in these areas.
AGE STRuCTuRE OF ISSuER, COuNTERPARTy AND BORROWER RISKS
Age Total in % 1)
0 – 3 months 3 months – 1 year 1 – 5 years more than 5 years
in € million 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Sub-performing 0 0 20 0 92 94 34 42 146 136 0.20 0.17
Non-performing 0 0 25 15 11 69 18 46 53 130 0.07 0.16
Total 0 0 45 15 102 163 51 88 199 266 0.27 0.33
1) in % of CCE of issuer, counterparty and borrower risks
Group management report Risk Report 85

86
Group management report Risk Report
Current credit
exposure of
non-performing
loans in € million
3,500
3,000
2,500
2,000
1,500
1,000
500
0
3,170
The CCE of non-performing loans, i.e. the loans
defaulted on, declined in the reporting year. Its share
in the Group’s total exposure as at 31 December 2010
was 2.5 % (previous year: 2.7 %).
Credit risk provisioning
The authority of the credit risk divisions includes
recognising specific allowances for impairment losses.
Above defined amounts, individual members of the
Board of Management or the Board of Management
as a whole decides on the amount of the specific
allowance for impairment losses.
Provisioning for credit risk made during the year
and the expected future developments are reported
monthly to the Board of Management. The level of
the proposed specific valuation allowance is based
on strictly defined criteria that depend on the type
of collateral provided and the status of the loan
commitment (restructuring or settlement), among
other things.
In the context of a portfolio assessment, we also
calculate the credit risk provisioning requirement for
loan commitments for which no specific valuation
allowance is carried out. The results of the credit risk
measurement procedure described above (rating,
probability of default, loss ratio) are included in this
calculation.
3,062 2,973 3,010
2,801
31.12.2009 31.3.2010 30.6.2010 30.9.2010 31.12.2010
Participation risks
Participation risk includes the risk of losses from
providing equity and near-equity resources to third
parties. This relates to the tied-up capital of equity
investments and other obligations associated with
the equity investments.
The intended focus for the equity investment portfolio
is on entrepreneurially advantageous investments
that support the value chain. The elimination of equity
investments no longer required or those being wound
up from the portfolio is continuing.
The participation risks are integrated into the internal
risk tolerance calculations. Risk capital for investments
is calculated not only on the basis of book values,
but also with a view to the probability of default, contingencies
and any liquidation periods, as well as
expert estimates. This ensures that risks relating to
the issuance of equity are reflected to the greatest
possible extent. Results are back-tested annually
to confirm the adequacy of risk determination.

In the context of Bank-wide stress testing, the credit
rating of equity investments, their earnings power
and enterprise value were identified as the key risk
factors.
The parameters of rating classifications, investment
income and write-downs undergo variation. Qualitative
risk concentration monitoring is performed by
way of regular risk analyses and reporting in the top
management report.
The Group’s equity investments are generally allocated
to the strategic divisions. An exception to this
is a certain number of companies which primarily
perform central services and which are therefore
managed centrally. The strategic division to which the
respective shares are assigned is responsible for
the risk- and earnings-oriented management of the
equity investments. The allocated equity investments
are included in the risk strategy of the respective
strategic divisions and statements are made on the
strategic orientation. The Board of Management of
LBB reports on the risk situation on a monthly basis
in the top management report.
Under the premises of risk diversification and the
risk strategy approach of focusing on strategically
advantageous investments, the following sub-portfolios
were formed:
product suppliers promoting core business,
sales channels promoting core business,
investments in service providers,
investments within the Group,
bundling the real estate holdings of LBB,
financial investments.
In addition, there are investments intended for
divestment, including in particular companies
that are no longer operational, companies in silent
liquidation and restructuring activities.
In total, participation risk declined by around € 1.5 million
or 8 % year-on-year as a result of disposals and
liquidations. A significant investment was sold in Atos
Worldline Processing GmbH in mid-2010.
Given the disposals performed and the fact that no
significant new exposures are intended, the limit
for participation risk was lowered accordingly in the
reporting year.
Liquidity risks
The liquidity risk is the risk that at any time, the
Group may not be in a position to meet its payment
obligations on time and in full (solvency).
Guaranteeing the Group’s central liquidity is the
responsibility of Treasury and Trading in Capital
Markets. The aim of liquidity planning and controlling
is to ensure solvency at all times and compliance
with regulatory liquidity ratios even in crisis situations.
Effects of the financial crisis
The factors limiting the refinancing markets’ capacity
to operate that have lingered since the financial crisis
broke out in 2007 continued in 2010 as well. In particular,
this triggered jitters regarding the solvency
of Portugal, Ireland, Italy, Greece and Spain. The
markets are still dependent on massive support from
governments and their central banks, though the
expiry of two annual tenders since the third quarter
reveals a trend on the part of the ECB towards
downscaling these activities. However, there are no
signs at all that the markets are returning to normal.
Group management report Risk Report 87

88
Group management report Risk Report
Cumulative
cash surpluses
of LBBH over
360 days as per
the Liquidity
Ordinance
in € billion
Within this challenging environment, the refinancing
and liquidity situation of Landesbank Berlin can be
described as is in order. For LBB this development
has been reflected in refinancing prices rather
than volumes. Over the year as a whole, business
volumes were fully refinanced while maintaining
appropriate reserves on the hedged and unhedged
money markets.
Principles and liquidity ratios
In the Group, the liquidity risk is monitored in accordance
with Article 11 of the German Banking Act
(KWG) and the internal liquidity risk measurement
procedure. Article 11 of the German Banking Act
states that banks must invest their funds in such
a way that sufficient liquidity can be guaranteed
at all times.
Under the “Ordinance on the Liquidity of Banks”
(Liquidity Ordinance), the Bank’s liquidity is considered
sufficient if the cash and cash equivalents
20
16
12
8
4
0
It is clear that liquidity management ensured a positive
cash surplus at all times over 360 days.
available at least cover the payment obligations for
the next 30 calendar days. Observation ratios are
also calculated with a horizon of up to 360 days. The
key factors are actual and forecast cash flows and
the holdings of highly liquid assets. The liquidity
ratio describes the ratio of cash and cash equivalents
available and callable payment obligations
within the first month. Liquidity is considered sufficient
if the liquidity ratio is at least 1.0.
The liquidity ratio must be met each day and is
reported to the BaFin as at the last day of each
month by the 15th working day of the subsequent
month. A cash surplus can be calculated from
the difference between cash and cash equivalents
and payment obligations.
Taking into account the remaining terms for assets,
the cumulative cash surplus for LBBH over 360 days
as per the Liquidity Ordinance was as follows:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
The internal liquidity risk measurement and controlling
of the Group is described below and is carried
out in principle in line with the logic of the Liquidity
Ordinance of being able to cover determined and
stress test-based liquidity outflows with assets that
can be readily converted to cash.

The following graphic shows the liquidity ratio
reported to the Board of Management each month.
2.6
2.4
2.2
2.0
1.8
1.6
1.4
1.2
1.0
January 2009
April 2009
July 2009
October 2009
Liquidity ratios were complied with at all times. The
figures were as follows as at the end of the year:
Liquidity ratio 2010 2009
Landesbank Berlin 1.81 2.05
Berlin Hyp 1.23 1.54
Measuring and limiting liquidity risks
The Group also performs liquidity risk controlling
that goes beyond the requirements of the Liquidity
Ordinance but is based on its methodology. Additional
stress tests have been introduced with model
parameters that are based on the specifications
of the Liquidity Ordinance but are, at times, much
more conservative.
Internal liquidity risk controlling is divided into procurement
and maturity risk. This internal breakdown
takes into account liquidity risk in a narrower sense,
refinancing risk and market liquidity risk.
January 2010
April 2010
Landesbank Berlin Berlin Hyp
July 2010
October 2010
The procurement risk is the risk that it may no longer
be possible to meet short-term mature payment
obligations in the next 30 days with barred access to
the unsecured money market in the case of a crisis.
The maturity risk involves the risk that it may only be
possible for mature, originally medium and longterm
refinancing funds for which there are no assets
falling due to be extended for a short period, due to
credit rating problems or for market-related reasons.
The capital maturity statement, which reflects the
Bank’s cash flow profile, will now form the basis for
all liquidity risk assessments by Risk Management.
The capital maturity statement shows the complete
range of maturities for all financial instruments reported
in the Group. The basis of the capital maturity
statement is formed by the assumptions on the
prolongation of assets falling due and the elimination
of intragroup payments in order to ensure that the
actual liquidity effect of each cash flow is presented
correctly.
Group management report Risk Report 89
Liquidity ratio
reported to the
Board of Management
each month
in € million

90
Group management report Risk Report
On the basis of the above, the Bank calculates the
daily refinancing balances required to be covered for
short-term assets with a term of up to 30 days.
These are monitored by Risk Management to ensure
that the Group’s liquidity is secure at all times, even
where restrictive assumptions are applied. Among
other things, the assumptions reflect partial outflows
of short-term deposits, utilisation on approved credit
lines, discounts on the sale of securities portfolios
and more stringent refinancing conditions.
For assets with terms of between 31 and 360 days,
the limitation of refinancing balances for these terms
follows the same risk assessment. In this respect,
the cash flows are divided into different term bands,
some of which overlap. This limits the need for
short-term refinancing in the case of a crisis affecting
the Bank’s access to medium and longer-term
unsecured money market refinancing. The upper limits
are based on the securities liquidity reserve that is
available for the entire period. In addition to this
restriction due to the unused liquidity reserve, the
balances are also nominally limited.
Reporting of liquidity risks
A presentation of the liquidity risk situation, the
current risk utilisations and the short-term financing
requirement is prepared on a daily basis and made
available to the Board of Management every two
weeks during the meetings of the Asset Liability
Committee and monthly in the context of top
management reporting. In addition, the Board of
Management is informed twice per week as part
of the separate presentations on the liquidity position
to the banking supervisory authority (BaFin).
Internal reporting covers the monitoring of prior warning
levels. When these are reached, defined escalation
measures are initiated. In 2010, utilisation of the
limits for both the procurement and the maturity risk
was not a problem during the course of the year.
Managing liquidity risks
The Group’s liquidity risk policy is based on maintaining
sufficient levels of assets that can be easily
liquidated to cover actual expenses and those
calculated in stress tests.
Group-wide liquidity management is handled by
Treasury and Trading. The same system and methods
are used as for internal determination of liquidity
risks by Risk Management. The aim of liquidity
management is to ensure that sufficient liquidity is
secured at all times in line with the methodology
described, even during short-term bottlenecks and
long-term general or bank-specific liquidity crises.
Concentrations of risk
The location of the Group’s companies means that
regional concentrations arise in particular with regard
to the highly diversified customer deposits, which
are highly concentrated in the Berlin-Brandenburg
region. At around 80 %, interbank financing is also
largely focused on Germany. The distribution is similar
for subordinated debt, with the share of placements
attributable to regions outside Germany is estimated
at 30 %.

As it was not possible to use the unhedged bond
markets economically on account of the financial
market crisis, LBB performed the majority of the
necessary refinancing transactions in 2010 with the
help of private placements. In LBB’s new mortgage
bond issues over the reporting year did not include
any jumbo transactions as, here too, private placements
made more sense economically. More than
90 % of sales of covered and uncovered new issues
took place in Germany.
REPORTED LIABILITIES
in % 2010 2009
Deposits by banks 25.0 28.8
Amounts due to customers 27.5 24.4
Securitised debt
Financial liabilities recognised at
18.7 19.9
fair value through profit or loss 21.1 19.7
Other liabilities 7.7 7.2
Total liabilities (Group) 100.0 100.0
Breakdown by residual term
The following table shows the Group’s financial
liabilities as at 31 December 2010, broken down by
their contractually agreed remaining maturity. The
data is based on the capital maturity statement by
internal liquidity risk controlling. It shows only a
cash flow view, which – as permitted under IFRS 7 –
differs from the details in the statement of financial
position. This also takes into account future interest
payments or the expected undiscounted net cash
flows on derivative liabilities if these cash flows can
be calculated. Otherwise the negative fair values
are used. The cash flows are included with their
respective earliest possible payment dates.
LIABILITIES By REMAINING TERM
in € million 2010 2009
Banks
< = 1 month 23,230 25,537
> 1 month and < = 1 year 6,129 18,032
> 1 year and < = 5 years 1,756 1,664
Total 31,115 45,232
Customers
< = 1 month 23,642 23,385
> 1 month and < = 1 year 4,092 4,398
> 1 year and < = 5 years 6,630 5,948
Total 34,364 33,731
Issued securities
< = 1 month 1,725 382
> 1 month and < = 1 year 10,429 11,461
> 1 year and < = 5 years 32,492 31,424
Total 44,646 43,267
Derivative liabilities
< = 1 month 3,788 3,823
> 1 month and < = 1 year 4,051 5,569
> 1 year and < = 5 years 6,388 6,037
Total 14,227 15,429
Market price risks
Market price risks are a potential loss of value
caused by unfavourable changes in market prices
or parameters that influence them.
The Group is exposed to market price risks in the
form of interest rate, share price, currency and other
price risks (particularly credit spread risks) in the
various divisions of Capital Markets (trading portfolio)
and in Interest Management (banking book).
Group management report Risk Report 91

92
Group management report Risk Report
Interest rate risk controlling in the banking book
focuses on offsetting interest rate risks from customer
business and long-term refinancing, generating longterm
term transformation income from yield curve
developments and generating income from equity
investments. In addition, Interest Management
performs investments within other risk classes as
part of long-term strategies.
Management of market price risks
Trading activities are included in the risk strategy set
out in writing. For the trading portfolio and banking
book activities alike, the strategic framework is
transformed into firm market price risk limits (valueat-risk
(VaR) limits; ten-day value-at-risk at a 99 %
confidence level) and approved by the LBB Board
of Management on the basis of the risk tolerance
concept and annual planning.
Risk management for trading portfolio activities is
carried out by the front office divisions on the basis
of market price risk limits / utilisation, stress tests
and the profit and loss analyses for each strategic
division and desk or trader. It is supplemented by
daily and annual loss limits and other front office procedures
that are tailored to the respective type of
transaction and that vary depending on the strategic
division involved (e.g. scenario matrix limits, shift
sensitivity limits, basis point value limits, duration
limits or vega limits).
The banking book is managed by the Asset Liability
Committee of the Board of Management, which
discusses and decides on business policy re-evaluation
and, where appropriate, the reorientation of the
interest rate and price risk incurred at least every
14 days. It also uses the stated procedures for controlling
trading transactions and economic income
effects (changes in net asset value) and analyses
of current income, particularly net interest income.
Taking economic income effects into account
enables control based on net present value and
maturity criteria. Income statement controlling is
also supported by analyses of current income.
The General Product Committee meets regularly and
is required to assess the risks and organisational
effects from new forms of business and to monitor
the necessary steps up until their launch. Final
authorisation of any new product is issued by the
respective Board of Management on the basis of
a joint proposal by the General Product Committee.
Similar procedures apply to activities on new markets.
Monitoring market price risks
Market price risk is controlled independently of
trading in Risk and Controlling.
The monitoring of market price risk consists of a
system of limits to restrict risk and loss and a set
of related procedural rules. Regular reporting of
market price risk is an elementary component as
this ensures a flow of information within the Group.
Thus, checks can be followed at short notice by
any controlling activities that may be required.
Since the regulatory recognition of the internal procedures
(full-use model including special price and
currency risks), the market price risk position has
been reported to BaFin on the basis of this internal
model for market price risk monitoring.

Reporting market price risks
The results of the daily risk and P & L analyses are
reported to the Board of Management member
of LBB responsible for Risk Controlling and Capital
Markets.
The Group has established a comprehensive and
detailed risk reporting system for market price risks:
intraday monitoring of the risks and income
of the trading divisions,
a daily report in accordance with MaRisk
to the responsible members of the Board of
Management,
fortnightly asset / liability report for discussion
by the Asset Liability Committee,
monthly reporting in accordance with MaRisk
to the Group Board of Management with an
explanation of the changes that have occurred
during the month.
GROuP VALuE-AT-RISK
The risk control procedures used in the Group have
proved their worth in all market situations during the
year under review. This is particularly true of the
extraordinary market developments seen in the crisis
in Greece and Ireland in May and November 2010.
Risks are identified in a timely manner, reported and
controlled by the respective decision-makers.
Market price risk limits and utilisation
in the Group
The table below compares average, maximum and
minimum values with the limits. Details and management
of market price risks are described in the
following sections.
Average Minimum Maximum Limit as at
in € million 2010 2009 2010 2009 2010 2009 31.12.2010 31.12.2009
Capital Markets 75 86 41 38 217 210 170 180
Trading 6 11 3 5 16 20 60 40
Client Business 8 11 4 4 22 22 27 25
Treasury 69 79 36 36 196 186 150 180
International Business 1 1 0 0 2 2 5 5
Banking book 63 118 33 47 130 235 230 260
Landesbank banking book 43 60 25 26 113 166 150 150
Berlin Hyp banking book 37 73 16 25 115 131 85 110
Other banking books 1 2 1 1 2 7 5 12
Group 108 157 56 85 341 336 400 400
Price risk 17 17 14 11 35 47
Currency risk 10 9 6 2 18 25
Interest rate risk 52 80 24 23 134 193
Credit spread risk 69 124 31 68 174 263
Group 108 157 56 85 341 336
Owing to diversification effects, the Group amounts are not calculated as the total of the individual activities.
Group management report Risk Report 93

94
Group management report Risk Report
Risk concentration
The Group’s daily MaRisk reports extensively on
detailed and specific risks. In addition, there are a
large number of prescribed detailed stress tests,
a variable stress test counter to the respective
current positioning and five risk stress scenarios.
In order to identify and avoid concentration risks
there is also a pool of various stress scenarios from
which the five biggest loss scenarios are reported.
There were no particular concentrations of market
price risk on single securities in the reporting year.
Interest rate risk
Uncertainty regarding future changes in market interest
rates and the resulting losses are a major risk
factor for the Bank. This risk is determined in the
Group as part of VaR calculations. It is limited and
regularly monitored. Interest rate risk is managed
holistically, taking into account all cash flows.
As at the end of 2010, the Group’s position in terms
of interest rate fluctuations was positive. Exposure
in the Group rose slightly as against the previous year.
The effects of a general change in interest rates
by + 100 and – 100 basis points are calculated in
scenario calculations.
+ 100 BP – 100 BP
in € million 2010 2009 2010 2009
Group – 257 – 184 18 94
LBB – 197 – 123 – 8 72
Berlin Hyp – 57 – 44 23 0
Others – 3 – 17 4 22
The scenario calculation method is based on a
full remeasurement of the portfolio taking optional
components into account and limiting downward
interest rate movements to zero. This results in the
asymmetry observed in interest rate climbs and falls.
The investment book interest rate risks of LBB AG
are analysed in line with the requirements of the
Solvency Ordinance in terms of changes of + 130
and – 190 basis points:
+ 130 BP – 190 BP
in € million 2010 2009 2010 2009
LBB
(Investment
book) – 246 – 149 – 73 143
Currency risk
The Group does not have any significant currency
exposure. The average price risk of € 10 million
shown in the Group value-at-risk table is primarily
due to present value mismatches between assets and
their refinancing, residual amounts from customer
transactions, foreign currency liquidity support and
individual trading items with foreign currency assets.
The largest currency risk as at the end of the year
related to the exchange rate effects of the US dollar.
Share and fund price risks
Share price risks primarily result from trading strategies
and surpluses in issuing business from structured
share products. Losses mainly occur when share
prices fall.
Over the course of 2010, the Group held a broadly
diversified funds portfolio mainly in its banking book.
Funds are treated as shares in risk measurement
methods. The trading book is reviewed where possible.
There are also specified stress tests for different
categories of funds.

Development of the market price risk
of the Group
Since 31 December 2009, market risk has risen
by € 12 million to € 98 million. The annual average
was € 108 million.
By mid-April 2010, the risk declined steadily on
account of noticeably calmer market movements and
the absence of stressful lurches. The sharp rise in the
Group to € 341 million that followed at the start of
May mainly result from Capital Markets on account
of the aggressive movements in credit spreads for
bank and financial securities and in government bonds
in light of the Greek financial crisis. As a consequence
of this, the Group’s capital markets business briefly
exceeded the risk limit. In light of the steps taken at
a European level, the decision was made in LBB not
250
200
150
100
50
0
250
200
150
100
50
0
January 2010
February 2010
March 2010
April 2010
May 2010 2010
June 2010 2010
to take active countermeasures. When market
volatility grew calmer again from the middle of May,
the steady decline in risk continued.
There was a further rise in risk in the wake of Ireland’s
crisis with the resulting higher volatilities in credit
spreads and interest rates and as a result of changes
in swaption sensitivity after interest rate changes.
In December, the risk in the banking book rose further
to € 122 million as a result of the stronger movements
in the Bank’s own credit spreads.
Utilisation for Capital Markets (limit € 170 million) and
the banking book (limit € 230 million) throughout
2010 is shown below.
July 2010 2010
August 2010 2010
September 2010 2010
Banking book Capital Markets
October 2010 2010
Group management report Risk Report 95
November 2010 2010
December 2010
Market price
risk of the Group
in € million

96
Group management report Risk Report
Risk assessment methods for market price risks
In terms of methodology, the procedures applied for
risk assessment (VaR exposure) are based on an
analytical delta-gamma approach including volatility
risks on the basis of a ten-day holding period and
99 % confidence level. Individual price risks are
explicitly measured for interest rate-related products
by examining various yield curves (such as swap
curves, overnight index swaps, money market). Share
price-related products are split into an equity indexrelated
portion and an individual portion (single
index model). This procedure means that the Group
is also able to anticipate unexpected price movements
of individual securities in the risk model that
fall outside market trends. Integrative reporting of
option risks is carried out in the form of gamma and
vega risks.
Correlations of the approximately 2,500 central risk
factors are taken into account in full for each strategic
division and for the report on the Bank as a whole.
In addition to the provisions mentioned, the risk content
of the positions is examined on a daily basis in a
large number of different (historical, fixed and exposure
related) scenarios by means of stress tests and
reported to members of the Board of Management.
The forecasting quality of the models is determined by
means of clean backtesting (i.e. ex post testing of
intraday changes in value of a constantly held portfolio).
Since 2002, backtesting checks have produced
results that confirm the high level of forecasting
quality. The validity of model assumptions is regularly
analysed using other mathematical methods.
Intraday monitoring of risks, results and compliance
with limits is carried out in the trading divisions. This
also enables effective monitoring of trading activities
during the course of the day.
Hedges
The Group uses hedge accounting to show accounting
for hedges. In micro fair value hedges, changes
in the fair value of financial instruments are hedged
against fluctuations arising from changes in reference
interest rates or currencies. Among other things,
this affects the Group’s issuing business and fixedinterest
securities used in liquidity management.
Interest rate swaps, currency swaps and interest
rate-currency swaps are used in these hedges. In a
macro cash flow hedge, the Group uses interest rate
swaps to hedge against cash flow fluctuations due
to variable interest rates on loans, securities and
liabilities used in asset / liability management. Please
also see the information under note 7.7 in the consolidated
financial statements.
Securitisation transactions
Following the recommendation of the Financial
Stability Forum, the Group’s exposure in securitisation
business is reported below. The Group has long
invested in a diversified and relatively conservative
portfolio of securitisation transactions. This presently
mainly consists of classic ABS / MBS. The portfolio
is managed centrally by the Treasury division and is
fully integrated into the risk monitoring and management
of the Group. New exposures are still implemented
highly selectively and to a limited extent. There
are no issuing activities in this market segment, nor
does the Group have any such issues outstanding.

SECuRITISATION PORTFOLIO OF THE GROuP AS AT 31 DECEMBER 2010
in € million
Nominal
amount
The other structured securitisations are securitisations
that cannot be assigned to any of the above
categories and funds that include securitisations.
While these funds are listed as not rated on account
of the lack of an external rating, they include rated
securitisations and would have a rating equal to at
least B using the internal rating methodology. More
than 50 % would be rated BBB or better.
Real estate risks
The Group’s real estate portfolio comprises properties
held by the Bank itself or its subsidiaries. There are
also finance lease properties and properties in funds
in which the Bank has an interest. A large portion
of exposure relates to administrative buildings used
by the Group within Berlin. The aim is continue to
reduce the portion of the real estate portfolio used
by third parties.
Carrying
amount
Carrying amount by external rating
AAA AA A BBB Non-inv.
grade
Selected structured securitisations 2,796 2,779 2,046 301 221 138 74 0
CMBS 118 118 44 28 27 19 0 0
RMBS 1,507 1,491 1,151 173 48 45 74 0
Securitised auto loans 304 303 303 0 0 0 0 0
Securitised student loans 544 544 273 100 97 73 0 0
Securitised credit cards 323 323 275 0 49 0 0 0
CDO 1,442 1,353 74 778 301 91 110 0
Synthetic CDOs 134 82 16 4 0 16 46 0
True sale CDOs of unstructured underlyings 1,226 1,225 58 774 287 75 31 0
CDO of ABS 81 46 0 0 14 0 32 0
Other structured securitisations 691 579 165 81 74 110 0 149
LBBH Group 4,929 4,712 2,285 1,160 596 339 183 149
CMBS: commercial mortgage-backed securities; RMBS: residential mortgage-backed securities; CDO: collateralized debt obligation; ABS: asset backed securities
The real estate risk describes the risk of losses as
against the current market value as a result of
changes in value.
The risks are monitored on a regular basis and
measured using the value-at-risk procedure. The
properties’ exposure (current carrying amounts,
impairment or survey values) is allocated to individual
location and use-related property indices, whose
volatility is calculated on the basis of price trends
over the past 15 years. Account is also taken of
correlations between the property indices when
aggregating the risks.
Group management report Risk Report 97
Not
rated

98
Group management report Risk Report
In Bank-wide stress tests, the model parameters
of the fair value of real estate and the values for
property indices are varied. Given the composition
of the portfolio and the risk strategy, no further
controlling measures are required for risk concentrations.
Qualitative risk concentration monitoring
is performed by way of regular risk analyses and
reporting in the top management report.
Real estate risks are managed on the basis of
separate limits for both the Group and its strategic
divisions. Utilisation is monitored regularly. The
figures are reported every quarter. The risk declined
slightly by around € 1.6 million or 2.2 % over the
course of 2010 mainly as a result of adjustments
of property values in line with current market
conditions.
Operational risks
Operational risk in line with Article 269 (1) SolvV is
defined as the risk of losses arising from the inadequacy
or failure of internal methods and systems,
people or as a result of external events. This definition
includes legal risks but not strategic or reputation
risks. Legal risks are the risks of violations of current
and changing legal conditions, particularly legal provisions
arising from contracts, law or court rulings.
This includes the risk of violations of legal conditions
due to ignorance, insufficient diligence in legal application
(negligent interpretation), negligent action or
late implementation.
Generally, the Group strives to minimise losses from
operational risks that could sustainably impair the
business performance of the Group. The targets and
measures defined for this purpose at business area
and division level are determined by the responsible
local managers.
Organisational structure
The controlling of operational risks is the responsibility
of the Risk and Controlling division. This
independent unit is responsible for the development
and maintenance of a framework for the management
of operational risks, which includes strategy,
principles and procedures for identifying, measuring,
monitoring, analysing and reporting and developing
methods for controlling operational risks. The Risk
and Controlling division also ensures the implementation
and application of this framework. In addition,
the unit handles the monitoring and application of
existing and new regulatory requirements as regards
operational risks. Changes in the framework are submitted
to the Board of Management for coordination.
In line with the Group’s strategy for operational risks,
the implementation of the framework described above
and day-to-day management of operational risks
are the responsibility of the divisions as part of their
responsibility for earnings.
The OpRisk Committee is a body for all issues relating
to the controlling and management of operational
risks. It supports the Board of Management in the
performance of its monitoring function for operational
risks. The Committee consists of representatives of
the business and central divisions and the Group
companies. Among other things, the body serves the

purpose of an exchange of information on new controlling
instruments and current risk developments
and the clarification of operational risk issues (e.g.
new regulatory requirements). It also serves to
promote risk culture in the Bank. The responsible
member of the Board (Risk Board) is informed of
the resolutions passed by the OpRisk Committee.
Risk management and monitoring
Operational risk is included in the risk tolerance
concept for the Group’s overall risk management.
Operational risk is managed on the basis of the
Group-wide framework. The operational risk profile
is determined by comparison with the Group’s
risk propensity. Measures and priorities for risk
mitigation are also defined. The current operational
risk situation is reported to the Board of Management
as a whole on a monthly basis. Special,
detailed reports on operational risks are prepared
for the individual strategic business areas each year
and presented to the responsible member of the
Board of Management and the local OpRisk officers
(risk managers).
Various instruments are used to manage operational
risk efficiently. These include:
self-assessment (qualitative OpRisk inventory),
which uses a bottom-up approach,
scenario analysis, which is used to determine the
loss potential of critical scenarios for the Bank,
loss event accumulation (internal / external),
early warning system (tracking and monitoring
risk indicators),
controlling of measures: identified measures from
loss events, risk indicators and self-assessment
are tracked and monitored,
risk transfer through insurance.
The Group has developed its own software tools to
prepare / manage and report on the above data.
Measurement of operational risks
The Group currently uses the standard approach in
line with Article 272 SolvV for regulatory equity
requirements. In line with the provisions of the standard
approach, regulatory capital of € 212 million
(previous year: € 170 million) was calculated for the
Group in 2010. The Group underwent a review for
the certification of an AMA (advanced measurement
approach) for calculating capital backing for operational
risks in 2010. The review will be continued
in 2011.
The Group has refined its internal model for calculating
economic capital as part of its risk tolerance
concept on the basis of the statutory requirements to
apply an AMA. The components of the model are:
loss distribution approach (past loss distribution),
features of risk indicators (measurement using
traffic light status),
loss analysis, particularly for large-scale losses
(internal / external),
scenario analysis (determination of future loss for
critical scenarios).
Group management report Risk Report 99

100
Group management report Risk Report
The catalogue of significant scenarios of operational
risks was supplemented and revised in cooperation
with the OpRisk data consortium (DakOR). These
scenarios are discussed and assessed in the scenario
analysis. In addition to internal losses, scenarios are
also assessed using losses from DakOR and the
public loss database (ÖffSchOR). The Loss Distribution
Approach (LDA) is a statistical model for determining
the frequency and amounts of losses. It is
based on analyses of historical loss events based on
loss analyses and is integrated into the process of
determining operational risk (determining economic
capital). Past and forward-looking risk indicators
are regularly examined to identify negative developments
in risks in a timely manner. The result of the
interplay of the model components is a specific risk
assessment for each strategic business area examined.
By aggregating all strategic divisions and
Group companies included, this produces the Group’s
operational risk (economic capital requirement).
As at 31 December 2010, the risk calculation based
on the internal model produced a value of € 120 million
(previous year: € 70 million) for the Group, which
is included in the Group’s risk tolerance calculation.
The difference as against the previous year is essentially
due to the change in methodology away from
more scenario-based modelling of economic capital
and towards a model based on the AMA requirements
of the Solvency Ordinance.
Fraud prevention
In November 2009, the Board of Management resolved
that the Compliance unit should exercise the
coordination function for all activities “to prevent
fraudulent acts”. The local network of activities currently
in place at LBBH and its subsidiaries will also
be maintained.
The scope and structure of this new core process
in Compliance will be derived from the new version
of Article 25c KWG, currently still in the legislative
procedure, and the implementing rules expected
from the BaFin.
Compliance will also represent the Group externally
in terms of fraud prevention, for example, with public
prosecutors and regulatory authorities.
Compliance will present the results of its findings
and work on fraud prevention in a threat analysis to
be published at least once per year. The effectiveness
of local key controls (such as the dual control
principle, personal and building security checks)
and central key controls (functionality of the Internal
Control System, automatic checks on insider activity,
market manipulation, money laundering, terrorism
financing, embargo violations and account and
customer fraud) will be analysed by the Group as
a preventive security measure.
Personnel risks
The Group monitors and controls personnel risks in
line with the four MaRisk risk factors listed below with
the aim of identifying negative trends and introducing
suitable measures to prevent or minimise them:

Fluctuation risk: Appropriate representation
regulations in the divisions ensure that the
departure of employees does not lead to longterm
disruptions in operating processes.
Availability risk: Qualitative and quantitative
personnel resources are managed on the basis
of the individual goals and requirements of
divisions, including in particular business activities,
risk strategy and the risk situation.
Qualification risk: The Bank implements targeted
training measures to ensure that the level of
employee qualifications is consistent with current
developments at all times.
Motivation risk: Disincentives and conflicts of interests
are countered by the use of special remuneration
and incentive programmes. For this purpose
the Bank set up a Remuneration Committee in
line with MaRisk, which monitors compliance with
regulatory requirements and regularly reports to
the Board of Management.
Fraudulent acts are also still countered by an extensive
internal control system.
IT and system risks
Extraordinary IT and system risks can result from
insufficient security and quality and errors or disruptions
in key IT systems and processes.
At present, no high-probability IT or system risks
threatening the future of the Bank as a going concern
are expected. Thanks to the systematic controlling
and ongoing development of technologies, infrastructure
elements and IT processes considering the
factors of economy, urgency (legal or technological
necessity), innovation and risk, proper IT operations
are also assured going forward. Restructuring and
quality goals were met and legal requirements were
implemented.
IT risk management is defined centrally and holistically
and includes constant risk awareness training for
employees and regular risk analysis in the context of
established procedures. Defined risk indicators are
examined periodically to aid risk identification. This
enables the Group to identify operative IT risks and
implement risk-reducing measures.
In the past, the quality of information security was
based on the ISO standard 27002. In connection with
the OSPlus migration to Finanz Informatik GmbH &
Co. KG, Landesbank Berlin now has a contractual
obligation to establish the best practice standard
“Secure IT operations” from Finanz Informatik as the
Group’s new IT security standard. Finanz Informatik
has condensed the SIZ standard “Secure IT operations”
into a best practice standard for banks (SITB).
SITB is itself a certifiable standard but also ensures
compliance with national and international standards
and regulations. SITB takes into account not only
the most important standards for security management
(ISO / IEC 27001:2005, ISO / IEC 27002:2005),
but also operational (ITIL) and audit standards
(e.g. IDW, COBIT) in addition to industry standards
Group management report Risk Report 101

102
Group management report Risk Report
and those specific to organisations. Thus, LBB’s
reorientation in line with SITB entails greater security
requirements to achieve a higher security level in the
long term.
The Group has implemented a comprehensive set of
regulations on information security and the necessary
organisational structures and methods. The integrity,
availability and confidentiality of information and
information goods are ensured by the application of
typical quality standards for the industry in designing
IT systems and processes and by the use of best
practices.
Continuous and independent auditing of the infor-
mation security management system (ISMS) is per-
formed by the SIZ (Savings Bank IT Centre).
Quality management is also developed systematically.
As a key outsourcing company, BankenService was
DIN EN ISO 9001:2000 certified in 2009. The ability
to maintain business capacity during crises and
emergencies is regularly and successfully evidenced
by corresponding certification and emergency drills.
In 2010, the IT project portfolio focused on the implementation
and ongoing development of projects to:
meet changing legal and regulatory requirements,
optimise data and quality management,
modernise, consolidate, standardise and integrate
the IT infrastructure and IT processes,
migration to the OSPlus standard for Financial
Information Technology by April 2011.
The management of operational risks and emergency
provision are essential elements of project requirements.
This ensures that projects continue to make
a regular contribution to the reduction of operational
risks in future.
Security and emergency plans
The Group has formed a crisis team for the management
of catastrophe situations to perform decisionmaking
and management functions in the event of
crisis. It performs regular exercises.
Furthermore, against the backdrop of securing bank
operations on an ongoing basis and reducing losses
in the event of severe disruptions of operations to a
minimum, the Group also has a detailed information
security policy and an extensive written emergency
plan for its critical and highly critical business processes.
Emergency exercises are also regularly
performed for these processes.
The Group has appointed a Chief Security Officer
(CSO) for the coordination and monitoring of information
security and the topicality of its emergency
plans including the necessary emergency drills.

The OpRisk unit in the Risk and Controlling division
works closely with core competence divisions (e.g.
CSO, working group for information security and
emergency planning for IT and non-IT) in regular work
meetings and committees.
Outsourcing
The Group regularly performs risk analysis for outsourcing
relevant to MaRisk to determine its significance.
The risk analysis sets criteria for determining
the risk situation at service providers and risk considerations
for deriving significance.
An internal control system for performance monitor-
ing offices (IKS LüS) was also implemented in the
Organisation division. IKS LüS monitors the performance
of performance monitoring and acts as a
central risk service for performance monitoring.
Detailed, binding internal and contractual regulations
and process flows are used to ensure that data protection
is maintained when the Group contracts
external service providers for order data processing
purposes.
The relevant contractors are selected carefully by
the Group. The Bank regularly ensures that the technical
and organisational data protection and data
security measures taken by the contractor are complied
with.
Legal risks
Legal risks are countered by observing the legal
environment, specifying guidelines and utilising
standard contracts. Sufficient provisions are recognised
for legal risks.
Indemnity declarations by LBB and IBG
As stated in previous annual reports, LBB and Immobilien
und Baumanagement der BIH-Gruppe GmbH
(IBG), previously Immobilien und Baumanagement
der Bankgesellschaft Berlin GmbH, issued so-called
declarations of exemption to natural persons between
1994 and 1997. Under the terms of the declarations,
these persons were exempted by LBB and IBG from
their full liability to third parties as partners in various
real estate funds.
BaFin has stated that it considered the declarations
of exemption to be invalid under civil law. LBB and
IBG are of the same opinion. Accordingly, the declarations
of exemption do not have any relevance
under commercial or regulatory law.
Disposal of the shares in Allgemeine
Privatkundenbank Aktiengesellschaft (Allbank)
The Holding, then operating as Bankgesellschaft
Berlin AG, sold its shares in Allbank to GE Bank
GmbH in 2003. Its legal successor, GE Money Bank
GmbH, enforces guarantee claims arising from the
share purchase agreement due to imminent limitation
as part of an affirmative action for a right, for which
adequate provisions have been created.
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Group management report Risk Report
Risks from the implementation of the detailed
agreement and the disposal of the key Group real
estate companies to the State of Berlin
The Landesbank Berlin Holding AG is largely shielded
by the “Detailed agreement on the shielding of the
Bankgesellschaft Group from material risks of Real
Estate Services” (DetA) by the State of Berlin dated
16 April 2002. Among other things, the shielding
relates to certain letters of comfort and the loans
issued by Group banks to certain Real Estate Services
companies. For assuming the various guarantees, the
Holding is to pay guarantee commission of € 15 million
p.a. until at least 2011 inclusively. In addition, a
debtor warrant was agreed that carries with it certain
conditions, the costs of which are to be borne by
the Holding alone as the principal beneficiary of the
detailed agreement.
Any settlement risks are countered by procedures
agreed jointly with Berliner Gesellschaft, which
was established by the State of Berlin for controlling
Immobilien Altrisiken mbH (BCIA), and through
appropriate risk management systems.
Internal control and risk management system
for accounting and financial reporting
In addition to its own account, LBB also performs
accounting activities for the Holding and RVG on
the basis of agency agreements. For LBB and the
Holding, accounting includes in particular the preparation
of HGB annual financial statements and
IFRS consolidated financial statements in addition
to ongoing financial accounting. IFRS consolidated
financial statements are prepared for RVG. Responsibility
for accounting lies with the Finance department.
The accounting processes are standardised and
subject to continuous controlling performed as part
of the overall strategy for risk limitation.
The basis for this is provided by IDW PS 261 and
GAS 15. The internal control system (ICS) for
accounting and financial reporting comprises principles,
measures and procedures (regulations) for
ensuring the regularity and reliability of accounting,
compliance with the relevant legal provisions and
ensuring the effectiveness of controls in relation to
accounting. The internal risk management system
(RMS) for accounting and financial reporting comprises
measures to identify, assess and limit risks
that oppose the objective of compliance with the
applicable accounting provisions for the HGB annual
and IFRS consolidated financial statements.
Controls are implemented on the basis of the
assessment of their appropriateness, effectiveness
and economy.

The objective of the ICS is to record, process and
document business transactions that arise in full,
promptly and correctly in accordance with the legal
provisions, the Articles of Association and other
internal guidelines and to disclose, report and measures
assets, equity and liabilities accurately in the
financial statements and thereby to calculate profits
accurately. The controls also serve the purpose
of providing this financial statement information
promptly, reliably and in full.
The ICS for accounting and financial reporting
includes components that are integrated into and
independent of processes. The integrated measures
comprise organisational security measures such
as the separation of functions, restrictions on
access, guidelines and regulations on responsibilities
and controls through manual variance analyses
and programmed plausibility checks. The independent
measures consist of checks by the Internal Audit
department and overall reviews by the management.
In accordance with the overall risk strategy, the RMS
for accounting and financial reporting consists of
quantitative and qualitative methods of risk tracking
(loss database, self assessment and risk indicators),
risk management and monitoring measures and
regular reporting.
Responsibility for accounting lies with the Finance
department and, according to the organisational chart,
fell within Dr. Veit’s purview in the 2010 financial year.
Dr. Evers took on this role effective 1 January 2011.
The Finance department uses the prices provided by
the Risk and Controlling department for the measurement
of financial instruments, which, according to
the organisational chart, is in Mr. Müller’s purview.
Credit risks are measured in the Credit and Risk
Management departments, for which Mr. Müller is
responsible, and are taken over for the process of
preparing the financial statements.
The Finance department issues central and consistent
instructions for the preparation of the HGB
annual and IFRS consolidated financial statements
and for the tax accounts. In particular, this is done
by issuing a Group manual on the preparation of
consolidated financial statements.
LBB has a procedure documentation system for the
preparation of financial statements that includes the
controls to be performed in the process. Transactions
are processed and posted using IT systems. Trading
books and other records are kept electronically.
The central financial accounting system at LBB is
SAP ECC, FI module. Consolidation in the Group
is performed using SAP SEM, BCS module. The
accounting system is set up so that an expert third
party could determine an overview of the transactions
and the financial situation within an appropriate
timeframe. If accounting for the subsidiaries included
in the consolidated financial statements is not performed
by LBB, these have implemented and use and
implement individual software applications and proprietary
processes and controls for their accounting.
Internal auditing monitors compliance with regulations
at these subsidiaries.
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Group management report Risk Report
The management of risks in accounting is a component
of the management of operational risks.
The accounting process implicitly includes controls
for system-based comparisons, individual controls,
random sampling, plausibility checks and checks
against available data sources.
As an internal and independent office within the
Company, Internal Auditing performs independent
measures to monitor compliance with regulations
and thereby the effectiveness of the ICS. Internal
Auditing takes this into account in its rolling annual
planning and regularly performs checks in its
Finance and IT departments. In addition, high-level
management controls are installed in the form of
reporting and instruction systems.
If deviations or errors are ascertained in controls,
the accounting processes affected and the relevant
controls are evaluated and revised.
Other risks
Business policy and strategy decisions
Strategic risk is understood to mean the risk of
failing to meet long-term company goals as a result
of inaccurate, unprepared or incorrect assumptions
regarding strategic decisions. Management of
strategic risk is the responsibility of the Board of
Management as a whole, with certain decisions also
requiring the approval of the Supervisory Board.
The overall bank strategy, which was approved by
the Board of Management of LBB and is regularly
updated, represents a synopsis of the strategies
of all divisions, back-office sectors and corporate
centres and consists of the strategy document,
the goals of strategic divisions and planning. The
Board of Management defines the long-term corporate
goals and the general strategic conditions in
the annual strategy meeting.
The strategic goals of business areas and divisions
are monitored and controlled once per year using
defined performance indicators and targets. In addition,
selected financial and risk targets are monitored
during the year using a standardised report.
Deviations from plans in terms of the result targets
are to be regarded as early warning indicators. In
these cases, appropriate measures are instigated and
their success is examined. The report is regularly
presented at Board of Management meetings.

Opportunities and risks / outlook
Expected developments / assessment
of the economic situation
The global economic environment remains favour-
able for the German economy. However, catch-up
effects from the recession are expected to play a
smaller role than in the previous year, which means
that the economy will slow somewhat during the
year. On the periphery of the euro zone (Portugal,
Italy, Ireland, Greece, Spain), savings efforts have
been continued and domestic demand remains
weak here. The financial policy stimulus in the USA
is also having less impact. Growth in consumption
is also regressing because private households continue
to achieve only minor increases in income
and are continuing their saving efforts. By contrast,
the fact that liquidity conditions throughout the
world remain generous is making itself felt in a
positive manner. Investment can also be financed
increasingly from companies’ own reserves.
The growth rate in the Berlin-Brandenburg region will
again move more in line with the national average.
The assumption is that the upturn will continue and
that, by and large, economic performance will be
less volatile. Not least, the expansion of tourism is
having a stabilising effect. The fields of business
support services, biotechnology, medical technology,
traffic engineering and information and communication
technology are still the growth centres. However,
this region is dominated by a weaker income and
assets structure in private households compared to
the rest of Germany and companies with predominantly
smaller sales classes.
Price increases are likely to gain momentum slightly
because budget-related consolidation measures will
be a problem and companies will still pass on higher
input prices. The ECB will avoid any potential disruptions
caused by the current generous provision
of liquidity and will wish to manage the durations
and volumes of its tender operations more strictly.
With regard to the intensified debt situation on the
periphery of the euro zone and the risks associated
with this for the banking sector, it is likely that the
central bank will proceed with caution. However,
this problem is primarily being eased by government
rescue solutions, meaning that a gradual return to
normality in terms of monetary policy can be expected.
The banking industry will continue to operate in a
difficult environment. The income prospects of term
transformations are remaining adequate with an
interest structure that is still steep. However, this is
offset by risks that exist in the context of the scaling
back of stimulative monetary policy and more volatile
market development in general. This situation will
go hand-in-hand with more difficult refinancing conditions
for banks, while greater equity and liquidity
requirements will also lead to additional challenges.
Business outlook
Taking account of our assessment of the economic
situation, the Group remains focused on continuing
its growth in its four strategic business areas, using
investments to exploit market opportunities, and
continually improving the quality of its products and
services. The Group is increasingly playing a stronger
role as a service provider in the Sparkassen-Finanzgruppe.
Group management report 107

108
Group management report Opportunities and risks / outlook
The Group has a strong market position in its core
region of Berlin-Brandenburg. The national focus on
Real Estate Financing and its national credit card
and consumer loans business compensate for the
limited growth prospects in its core region.
The strategic business areas are managed using the
following performance ratios:
Operating result / earnings before taxes,
Return on equity,
Cost-income ratio.
The return on equity is determined by dividing
the operating result / earnings before taxes by the
tied-up equity capital. The tied-up equity capital
of the segments is the capital required according
to financial procedures.
The cost-income ratio is calculated as the ratio of
administrative expenses and the total of net interest
income, net fee and commission income, net income
from hedges, net income from financial instruments
recognised at fair value through profit or loss, net
income from financial investments, net income from
investments carried at equity and other operating
income.
Adequate equity / liquidity resources, HGB earnings
and dividend performance are also used as control
parameters at Group level and the level of the individual
banks.
Development of the strategic divisions
The continuation of the economic recovery in combination
with rising prices on the stock market is
providing the Group with opportunities with regard
to stronger or resurgent product demand among its
retail banking and corporate customers. There is
also likely to be a positive effect on the measurement
of its strategic portfolios.
The refinancing situation allows an ongoing expansion
of business. The Group will remain available
to all customers in its traditional business without
qualification.
Given the changes in the market environment and
the commercial orientation described above, the
following developments are expected in the individual
business segments.
Retail Banking
The current account models introduced in 2009 have
already proved their worth as tools to increase customer
loyalty and expand our position as market
leader (market share among personal current accounts
in Berlin 42 %) in regional business. The net increase
in the number of current accounts recorded in 2010
exceeds the outstanding growth achieved in 2009.
We are also continuing to assume that they will
become increasingly popular in the market since the
accounts combine the excellent service quality of
Berliner Sparkasse with a fair price. The first place
in the 2010 CityContest organised by Focus Money
(“Best Bank in Berlin”) also highlights Berliner
Sparkasse’s leadership in terms of quality from
an external viewpoint.
There are opportunities arising from the measures
that have been adopted to restructure sales in
Berliner Sparkasse’s core market and the investments
in national credit card, direct banking and
consumer loan business (S-Kreditpartner GmbH).

The strategic refocusing of sales in the Retail Banking
segment was completed, from an organisational
viewpoint, in the “Routes to the Customer” project.
Operational implementation started in the second
half of 2010 and will be completed at the end of 2012.
Our Bank’s consulting expertise is being combined
in the Finance Centres, which are located alongside
Retail Banking Centres. Wealthy customers will be
able, as always, to make use of Asset Management
Centres. These allow the customer relationship to
be managed more intensively and allow customers
to make better use of our expertise. The establishment
of the Direct and Mobile Advice sales divisions
supports business activities with our customers,
who prefer to contact their bank directly rather than
visit a branch or would like their advisor to visit them
at home. The project should lead to further growth
in business volume and the increased earnings associated
therewith.
In addition, there is a continued focus on investment
business and consumer finance. In securities business,
the expectation is that, on the basis of the
good market performance in 2010, customers will
abandon caution and their focus on security once
more in favour of a greater focus on returns.
The expansion into consumer financing started with
sales finance and the credit platform for savings
banks will continue. Preparations are in hand for
the establishment of a joint venture (S-Kreditpartner
GmbH) with Deutsche Leasing in mid-2011. There
are also activities to incorporate readybank. The core
business for S-Kreditpartner GmbH will be instalment
loans (savings bank retail loans), car loans and
dealer purchase financing. As a result, we shall be
providing active support for concentrating consumer
Group management report Opportunities and risks / outlook 109
financing expertise within the savings bank organisation.
The aim is to regain terrain lost in lending by
the savings banks in the past and also to achieve
a position in this business that is appropriate to the
market leading position of the savings banks.
Further product innovations should help expand the
customer base in national card business. The cooperation
with netbank will continue.
The reorganisation of the sales structure by the end
of 2012 requires investment in the redevelopment of
sales offices, up-skilling employees and the expansion
of direct banking via the Berliner Sparkasse website
and direct advertising.
We shall also focus our attention on the development
of investment and customer advice processes
in qualified investment business. The aims are to
increase our expertise in securities and perception
thereof in the market and to expand the business.
We are exposed to risks in not achieving planned
business growth in the competitive environment or
because of future statutory or regulatory intervention
in product design and pricing.
In Retail Banking, we are expecting higher earnings
although they will be temporarily depressed by the
investments described above. The results achieved
in 2010, which were affected by non-recurring items,
will not be achieved in the next two years. We expect
a return on equity of around 25 %.

110
Group management report Opportunities and risks / outlook
Regional Corporate Banking
The core market of Regional Corporate Banking is
Berlin and the surrounding area. The Regional Corporate
Banking division is one of the leading banks
in this regional market, which is characterised by
intense competition and below average economic
potential.
In this competitive environment, in addition to the
acquisition of new customers, the intensification of
existing customer relationships by actively addressing
customers and providing support tailored to the
requirements of each target group is becoming
increasingly important. The considerable degree of
customer loyalty already achieved is to be developed
and will form the basis for an even greater utilisation
of potential.
Landesbank Berlin will also continue to win over
commercial clients and small and medium-sized
enterprises in the core market of Berlin-Brandenburg
through an extensive range of financial services,
customer orientation and expertise. Consolidation of
our strong market position as part of an incomeand
risk-oriented business policy remains a strategic
target.
Particular opportunities will emerge from companies’
confidence in our expertise and our reliable business
model. There are risks in the below average economic
development of the regional market and the high
regional insolvency ratio. The repercussions of the
regulatory changes are not yet foreseeable either.
Regional Corporate Banking will also invest in quality
as a competitive factor in future. In 2010, TÜV-
Rheinland certified the service and consulting quality
of all sales channels in Regional Corporate Banking.
We aim to live up to this ambitious aspiration in
future too. The implementation of the quality strategy
in all customer segments and sales channels remains
an issue of central importance.
The result achieved in 2010 will not be achieved in
the next two years due, in particular, to increasing
pressure on interest margins. We are expecting a
lower profit contribution and a return on equity of
around 20 %.
Real Estate Financing
In 2010, the Real Estate Financing segment again
succeeded in further consolidating its top position
among the leading German providers in the real
estate financing business.
In commercial real estate financing throughout
Germany, the focus will remain concentrated on
investor finance and individual financing structures
involving risk-adequate pricing in future. Financing
in selected international markets is undertaken
with the aim of a balanced blend and a wider distribution
of risk in the portfolio.
Real estate markets will also benefit from the upward
trend in the economy in 2011. The return of foreign
investors to the German market, the stabilisation of
prices with, in some cases, signs of a slight upward
trend and evidence that return expectations are falling
give ground for expecting an increasing willingness
to invest and, consequently, a further increase in
transaction volume. Hopeful signs are also emanating
from residential construction where the construction
industry and the number of construction
permits achieved growth of more than 7 % yearon-year
in 2010. Starting from this assessment, we
are expecting new business in 2011 to match the
very good previous year.

Opportunities for even more effective market penetration
will emerge from refocusing sales teams
to make them more streamlined in future and other
measures to optimise our credit decision-making
processes. There are risks from the not yet foreseeable
repercussions of the regulatory changes.
We are investing in the expansion of our foreign
business by opening a representative office in Paris
in spring 2011.
We are expecting a slight fall in risk provisioning
and a moderate rise in the loan portfolio. Against
the background of the economic recovery and our
positioning in the market, the Real Estate Financing
sector is assuming rising profit contributions and
a return on equity of more than 20 %.
Capital Markets
Capital Markets is a key mainstay of earnings at
LBB. The segment’s successes are apparent in the
savings bank sector and the certificates market.
Here, LBB is perceived as an innovative provider of
high quality products and outstanding service. With
the strategic refocusing of Capital Markets, opportunities
to increase client earnings and to reduce the
volatility of results in non-customer related transactions
will emerge while risks are rendered entirely
transparent. The increased focus on customer
business and customer requirements requires the
refocusing and expansion of sales activities and
the establishment of a new sales philosophy. Investment
in technical platforms that meet the requirements
of the market and individual customers is of
Group management report Opportunities and risks / outlook 111
crucial importance. We shall therefore be focusing
on the establishment of a central product management
function and the entire trading infrastructure
over the next few years. The Bank will support
the savings banks in developing their business as
a partner and service provider and, in the process,
exploit changes in the competitive environment.
In achieving these goals, we are exposed to the
risks of unfavourable changes in the competitive
situation and in market and margin trends. International
financial markets will also be characterised
by considerable uncertainty over the next few years,
causing prices to fluctuate on a sustained basis.
A further escalation in the debt crisis and a softening
in growth represent the greatest risks here. A
sharp increase in the cost of capital as a result of
Basel III, particularly in the case of market price
risks, must be expected, which will affect revenue
management in the next few years.
Final implementation of the new strategy and the
leverage of the potential identified will lead to a
slight improvement in profits in the next few years.
For the next two years, Capital Markets is aiming
for a return on equity of around 20 % for its total
portfolio of activities.

112
Group management report Opportunities and risks / outlook
Comparison of projected and actual figures
The Group’s profit before taxes as at 31 December
2010 is below our expectations. Earnings development
in the Retail Banking and Regional Corporate
Banking segments and in the Real Estate Financing
is positive. In view of the volatility on the capital
markets and as a result of our cautious risk policy
and the corresponding caution with regard to financial
investments, the results of our Capital Markets
activities failed to match our expectations.
Estimate procedure / medium-term planning
The Group’s business planning and forecasts are
based on macroeconomic assumptions about the
development of the economy, the labour market and
interest rates. The economic situation is currently
positive. However, catch-up effects are now expected
to lose traction, which means that economic growth
will slow significantly. This development will also
go hand-in-hand with more difficult refinancing conditions
for banks, while the discussions of greater
equity and liquidity requirements also constitute
additional challenges. The banking industry will therefore
continue to operate in an extremely difficult
environment.
Key central points were determined based on these
assumptions. Subsequently, the previous mediumterm
planning was revised throughout the Group
by the divisions. As part of this process, the targets
for client / market positioning, new business and
earnings and risks were planned and investments
and costs were determined in detail.
The above estimate for development in the strategic
divisions is based on medium-term planning that
extends to 2015. The Interest Management, Other
and Consolidation segments are also taken into
account in estimating the consolidated result and
the return on equity.
The plan is based on approved business and risk
strategies.
Summary / overall assessment
The Group is anticipating a stable liquidity situation
and thereby the continuing full refinancing of business
volumes on the hedged and unhedged money
and capital markets. The Group is therefore assuming
that it will be able to continue its positive performance
in operating business. However, the uncertainty
on the global financial markets and the associated
repercussions of economic developments
in the euro zone make it difficult to make forecasts.
Regardless of this, the Board of Management is
assuming for the next two years that earnings before
taxes will gradually increase, the Group’s capital
base will be steadily strengthened allowing a dividend
payment and a return on equity before the
banking levy – based on consolidated results – of
around 15 % will be achieved.

Annual financial statements
for the Group
Consolidated financial statements 113
Consolidated statement of comprehensive income 114
Quarterly development of the LBB Holding Group 116
Consolidated statement of financial position 118
Statement of changes in consolidated equity 120
Consolidated cash flow statement 122
Notes 124
Notes to the the financial statements 126
Notes on accounting policies 137
Notes to the income statement 150
Notes to the statement of financial position 158
Other notes 186

114
Consolidated financial statements
Consolidated statement of comprehensive income
for the period from 1 January to 31 December 2010
Income statement
Notes 1.1. – 31.12. 1.1. – 31.12. Change
in € million 2010 2009 1) in %
Net interest income 21 725 862 – 137 – 16
Interest income 4,174 4,686 – 512 – 11
Interest expenses 3,449 3,824 – 375 – 10
Allowance for losses on loans and advances 22 105 185 – 80 – 43
Net interest income after risk provisioning 620 677 – 57 – 8
Net commission income 23 274 262 12 5
Fee and commission income 421 395 26 7
Fee and commission expense 147 133 14 11
Net income from hedge accounting 24 7 – 15 22 > 100
Net gain from financial instruments recognised at fair value through profit or loss 25 349 478 – 129 – 27
Net income from financial assets 26 – 22 – 107 85 79
Net income from investments carried at equity 27 8 – 14 22 > 100
Other operating income 28 84 41 43 > 100
Administrative expense 29 1,003 985 18 2
Operating result before restructuring 317 337 – 20 – 6
Restructuring expenditure and income (net) 30 0 – 8 8 100
Operating profit / earnings before taxes 317 329 – 12 – 4
Income tax expense 31 52 64 – 12 – 19
Consolidated net profit for the period/earnings after taxes 265 265 0 0
Net profit / loss attributable to minority interests – 2 15 – 17 < – 100
Consolidated net profit for the period of the shareholders of the parent company 267 250 17 7
Earnings per share 1.1. – 31.12.
2010
1.1. – 31.12.
2009 1)
Change
in %
Consolidated net profit for the period of the shareholders
of the parent company (€ million) 267 250 7
Average number of ordinary shares outstanding 999,327,870 999,327,870 0
Earnings per share (€) 2) 0.27 0.25 7
1) Figures for the previous year have been adjusted
2) Diluted = basic earnings

Total comprehensive income
1.1. – 31.12. 1.1. – 31.12. Change
in € million 2010 2009 1) in %
Consolidated net profit for the period / earnings after taxes 2) 265 265 0 0
Change in
Reserve for the measurement of AfS financial instruments 49 626 – 577 – 92
of which reclassification to the income statement – 7 28 – 35 < – 100
Reserve for the measurement of hedging derivatives in cash flow hedges – 7 – 18 11 61
of which reclassification to the income statement 16 18 – 2 – 11
Reserve for the measurement of pension provisions (actuarial gains / losses) 31 – 33 64 > 100
Currency translation reserve 0 11 – 11 – 100
Carrying amounts of investments carried at equity – 4 2 – 6 < – 100
Deferred taxes on other comprehensive income
Reserve for the measurement of AfS financial instruments 31 135 – 104 – 77
Reserve for the measurement of hedging derivatives in cash flow hedges – 2 – 6 4 67
Reserve for the measurement of pension provisions (actuarial gains / losses) 9 – 10 19 > 100
Currency translation reserve 0 1 – 1 – 100
Net income recognised in equity 2) 31 468 – 437 – 93
Total comprehensive income 296 733 – 437 – 60
Comprehensive income attributable to minority interests – 1 19 – 20 < – 100
of which net profit / loss attributable to minority interests – 2 15 – 17 < – 100
of which other comprehensive income attributable to minority interests 1 4 – 3 – 75
Total comprehensive income of shareholders of the parent company 297 714 – 417 – 58
1) Figures for the previous year have been adjusted
2) including minority interests, see statement of changes in consolidated equity
Consolidated financial statements Consolidated statement of comprehensive income 115

116
Consolidated financial statements
Quarterly development of the LBB Holding Group
Income statement
in € million IV / 2010 III / 2010 1) II / 2010 I / 2010 1) IV / 2009 2) III / 2009 2) II / 2009 2) I / 2009
Net interest income 197 180 177 171 188 197 222 255
Interest income 1,006 965 1,107 1,096 1,015 1,055 1,178 1,438
Interest expenses 809 785 930 925 827 858 956 1,183
Allowance for losses on loans and advances 5 22 36 42 47 77 38 23
Net interest income after risk provisioning 192 158 141 129 141 120 184 232
Net commission income 75 73 60 66 73 64 63 62
Fee and commission income 113 112 97 99 109 100 96 90
Fee and commission expense 38 39 37 33 36 36 33 28
Net income from hedge accounting – 2 10 1 – 2 4 – 7 – 20 8
Net gain from financial instruments recognised
at fair value through profit or loss 88 92 – 1 170 91 156 144 87
Net income from financial assets – 20 – 9 6 1 – 16 – 23 – 26 – 42
Net income from investments carried at equity 5 2 0 1 – 12 – 5 2 1
Other operating income 29 13 40 2 12 8 12 9
Administrative expenses 266 251 241 245 259 227 245 254
Operating result before restructuring 101 88 6 122 34 86 114 103
Restructuring expenditure and income (net) 1 0 – 1 0 – 4 – 1 – 2 – 1
Operating profit / earnings before taxes 102 88 5 122 30 85 112 102
Income tax expense 18 14 1 19 – 17 53 16 12
Consolidated net profit for the
period / earnings after taxes 84 74 4 103 47 32 96 90
Net profit / loss attributable to
minority interests – 7 3 0 2 2 5 5 3
Consolidated net profit for the period
of the shareholders of the parent company 91 71 4 101 45 27 91 87
1) Figures for the previous quarters have been adjusted
2) Figures for the previous year have been adjusted

Total comprehensive income
in € million IV / 2010 III / 2010 1) II / 2010 I / 2010 1) IV / 2009 2) III / 2009 2) II / 2009 2) I / 2009
Consolidated net profit
for the period / earnings after taxes 3) 84 74 4 103 47 32 96 90
Change in
Reserve for the measurement of
AfS financial instruments – 56 63 – 55 97 70 228 151 177
of which reclassification to
the income statement 4 – 3 – 6 – 2 – 2 5 10 15
Reserve for the measurement of
hedging derivatives in cash flow hedges 32 – 3 – 17 – 19 18 6 0 – 42
of which reclassification to
the income statement 5 5 3 3 4 5 5 4
Reserve for the measurement of
pension provisions (actuarial gains / losses) 179 – 52 – 51 – 45 5 – 40 – 60 62
Currency translation reserve 0 4 – 1 – 3 – 2 7 18 – 12
Carrying amounts of investments
carried at equity – 7 1 3 – 1 1 4 – 3 0
Deferred taxes on other comprehensive income
Reserve for the measurement of
AfS financial instruments 4) – 13 19 – 2 27 17 56 25 37
Reserve for the measurement of
hedging derivatives in cash flow hedges 10 – 1 – 6 – 5 5 1 0 – 12
Reserve for the measurement of
pension provisions (actuarial gains / losses) 53 – 15 – 15 – 14 2 – 12 – 19 19
Currency translation reserve 0 1 0 – 1 0 1 0 0
Carrying amounts of investments
carried at equity 0 0 0 0 0 0 0 0
Net income recognised in equity 3) 98 9 – 98 22 68 159 100 141
Total comprehensive income 182 83 – 94 125 115 191 196 231
Comprehensive income attributable
to minority interests – 9 5 – 1 4 5 5 6 3
of which net profit / loss attributable
to minority interests – 7 3 0 2 2 5 5 3
of which other comprehensive income
attributable to minority interests – 2 2 – 1 2 3 0 1 0
Total comprehensive income of
shareholders of the parent company 191 78 – 93 121 110 186 190 228
1) Figures for the previous quarters have been adjusted
2) Figures for the previous year have been adjusted
3) including minority interests, see statement of changes in consolidated equity
4) Prior-year quarters shown for better comparability
Consolidated financial statements Quarterly development of the LBB Holding Group 117

118
Consolidated financial statements
Consolidated statement of financial position
as at 31 December 2010
Assets
Notes 31.12.2010 31.12.2009 Change 1.1.2009
in € million in %
Cash 8, 33 830 1,342 – 512 – 38 1,727
Loans and advances to banks 7, 34 16,750 22,461 – 5,711 – 25 22,369
Loans and advances to customers 7, 35 46,468 48,592 – 2,124 – 4 47,462
Risk provisioning 7, 36 – 1,058 – 1,116 58 5 – 1,245
Positive fair value of derivative hedging instruments 7, 37 1,182 983 199 20 749
Financial assets recognised at fair value through profit or loss 7, 38 17,198 17,586 – 388 – 2 18,295
Financial assets 7, 39 45,013 48,687 – 3,674 – 8 50,466
Investments carried at equity 9, 40 90 106 – 16 – 15 98
Intangible assets 10, 12, 41 681 654 27 4 650
Property, plant and equipment 11, 12, 42 550 569 – 19 – 3 578
Investment property 14, 43 59 86 – 27 – 31 65
Current tax assets 17, 44 55 34 21 62 99
Deferred tax assets 17, 44 720 795 – 75 – 9 930
Other assets 45 2,927 3,043 – 116 – 4 3,074
Non-current assets and groups of assets held for sale 15, 46 12 13 – 1 – 8 71
Total 131,477 143,835 – 12,358 – 9 145,388

Liabilities and shareholders’ equity
Notes 31.12.2010 31.12.2009 1) Change 1.1.2009
in € million in %
Deposits by banks 7, 47 32,840 41,370 – 8,530 – 21 45,950
Amounts due to customers 7, 48 36,092 35,129 963 3 32,720
Securitised debt 7, 49 24,695 28,657 – 3,962 – 14 29,826
Negative fair value of derivative hedging instruments 7, 50 2,000 1,624 376 23 1,340
Financial liabilities recognised at fair value through profit or loss 7, 51 27,669 28,321 – 652 – 2 27,097
Provisions 16, 52 1,192 1,214 – 22 – 2 1,168
Current tax liabilities 17, 53 120 136 – 16 – 12 157
Deferred tax liabilities 17, 53 15 15 0 0 33
Other liabilities 54 1,884 2,113 – 229 – 11 1,915
Liabilities assigned to groups of assets held for sale 0 0 0 0 83
Subordinated capital 18, 55 2,248 2,544 – 296 – 12 3,137
of which: Dormant participations 700 700 0 0 687
Shareholders’ equity 19, 56 2,722 2,712 10 0 1,962
Issued capital 19, 56 2,555 2,555 0 0 2,555
Capital reserves 19, 56 77 77 0 0 76
Retained earnings 19, 56 258 130 128 98 – 76
Currency translation reserve 19, 56 1 1 0 0 – 9
Revaluation reserve 19, 56 – 181 – 189 8 4 – 664
Minority interests 19, 56 12 138 – 126 – 91 80
Total 131,477 143,835 – 12,358 – 9 145,388
1) Figures for the previous year have been adjusted
Consolidated financial statements Consolidated statement of financial position 119

120
Consolidated financial statements
Statement of changes in consolidated equity
for the period from 1 January to 31 December 2009
in € million
Notes Issued
capital
Capital
reserves
Retained
earnings
Currency
translation
reserve
Revaluation
surplus
Minority
interests
Balance
Sheet
profit / loss
Total shareholders’
equity
Shareholders’ equity
as of 31 December 2008 2,555 76 – 93 – 9 – 664 80 0 1,945
Adjustments in accordance with IAS 8 57 17 17
Shareholders’ equity
as of 31 December 2008 (adjusted) 2,555 76 – 76 – 9 – 664 80 0 1,962
Consolidated net profit for the
period / earnings after taxes 32 15 257 272
Net income recognised in equity – 21 10 468 4 461
Change in
Reserve for the measurement of
AfS financial instruments 607 9 616
Reserve for the measurement of
hedging derivatives in cash flow hedges – 15 – 3 – 18
Reserve for the measurement of pension
provisions (actuarial gains / losses) – 33 – 33
Currency translation reserve 11 11
Carrying amounts of investments
carried at equity 2 2
Deferred taxes on
other comprehensive income
Reserve for the measurement of
AfS financial instruments 129 3 132
Reserve for the measurement of
hedging derivatives in cash flow hedges – 5 – 1 – 6
Reserve for the measurement of pension
provisions (actuarial gains / losses) – 10 – 10
Currency translation reserve 1 1
Carrying amounts of investments
carried at equity
Changes in scope of consolidation
and other changes 5 1 234 39 – 257 1) 17
Shareholders’ equity
as of 31 December 2009 19, 56 2,555 77 137 1 – 196 138 0 2,712
1) Reclassification to retained earnings

for the period from 1 January to 31 December 2010
in € million
Notes Issued
capital
Capital
reserves
Retained
earnings
Currency
translation
reserve
Revaluation
surplus
Minority
interests
Balance
Sheet
profit / loss
Total shareholders’
equity
Shareholders’ equity
as of 31 December 2009 19, 56 2,555 77 137 1 – 196 138 0 2,712
Adjustments in accordance with IAS 8 57 0 0 – 7 0 7 0 0 0
Shareholders’ equity
as of 31 December 2009 (adjusted) 2,555 77 130 1 – 189 138 0 2,712
Change in retained earnings – 140 – 140
Consolidated net profit for the
period / earnings after taxes 32 – 2 267 265
Net income recognised in equity 22 8 1 31
Change in
Reserve for the measurement of
AfS financial instruments 50 – 1 49
Reserve for the measurement of
hedging derivatives in cash flow hedges – 8 1 – 7
Reserve for the measurement of pension
provisions (actuarial gains / losses) 30 1 31
Currency translation reserve
Carrying amounts of investments
carried at equity 1 – 5 – 4
Deferred taxes on
other comprehensive income
Reserve for the measurement of
AfS financial instruments 31 31
Reserve for the measurement of
hedging derivatives in cash flow hedges – 2 – 2
Reserve for the measurement of pension
provisions (actuarial gains / losses) 9 9
Currency translation reserve
Carrying amounts of investments
carried at equity
Changes in scope of consolidation
and other changes 5 246 – 125 – 267 1) – 146
Shareholders’ equity
as of 31 December 2010 19, 56 2,555 77 258 1 – 181 12 0 2,722
1) Reclassification to retained earnings
Consolidated financial statements Statement of changes in consolidated equity 121

122
Consolidated financial statements
Consolidated cash flow statement
for the period from 1 January to 31 December 2010
in € million Notes
1.1. – 31.12.
2010
1.1. – 31.12.
2009 1)
Consolidated net profit for the period 265 265
Non-cash items included in consolidated net profit for the period and reconciliation
to net cash from / used in from operating activities
Depreciation and amortisation, allowances for impairment losses, reversals of impairment losses 22, 26, 29 186 329
Changes in provisions (additions and reversal only) 52 118 136
Change in other non-cash items – 75 – 786
Net income from the disposal of property, plant and equipment and intangible assets 26, 28 – 20 4
Net interest income 21 – 725 – 863
Other adjustments (net) – 520 – 362
Subtotal – 771 – 1,277
Change in assets and liabilities used in operating activities after adjustment for non-cash items
Loans and advances to banks 34 5,658 – 244
Loans and advances to customers 35 1,909 – 1,383
Financial assets recognised at fair value through profit or loss 38 347 1,795
Other assets used in operating activities – 123 – 101
Payments for the acquisition of financial assets used in operating activities – 8,273 – 9,924
Proceeds from the disposal of financial assets used in operating activities 12,501 12,088
Deposits by banks 47 – 8,488 – 4,422
Amounts due to customers 48 993 2,415
Securitised debt 49 – 3,897 – 1,024
Financial liabilities recognised at fair value through profit or loss 51 – 530 948
Other liabilities used in operating activities 14 178
Interest and dividends received 4,584 4,773
Interest paid – 3,698 – 3,740
Income tax payments – 50 – 6
Cash flow from operating activities 176 76
Proceeds from the disposal of
Financial assets used in investing activities 39 49 58
Property, plant and equipment 42 1 1
Intangible assets 41 0 0
Payments to acquire
Financial assets used in investing activities 39 – 219 – 1
Property, plant and equipment 42 – 22 – 25
Intangible assets 41 – 37 – 26
Effects of changes in the scope of consolidation
Proceeds from the disposal of consolidated companies after deduction of transferred cash 0 0
Payments for the acquisition of consolidated companies after deduction of transferred cash 0 0
Change in cash and cash equivalents due to other investing activities 0 0
Cash flow from investing activities – 228 7
Proceeds from capital increases 0 0
Dividends paid – 140 0
Cash inflows from subordinated capital 55 40 606
Cash outflows from subordinated capital 55 – 360 – 1,074
Change in cash and cash equivalents due to other financing activities 0 0
Cash flow from financing activities – 460 – 468
Cash and cash equivalents at the beginning of the prior period 1,342 1,727
Cash flow from operating activities 176 76
Cash flow from investing activities – 228 7
Cash flow from financing activities – 460 – 468
Changes in cash due to exchange rate, consolidation and measurement-related changes 0 0
Cash and cash equivalents at the end of the period 830 1,342
1) Figures for the previous year have been adjusted

The cash flow statement provides information on the amounts and development of cash and cash equivalents for the financial year,
broken down into operating, investing and financing activities.
Cash flow from operating activities is shown using the indirect method based on the net profit for the period. Cash flows
from operating activities essentially include cash flows from loans and advances to banks and customers as well as deposits by banks
and amounts due to customers, cash flows from securitised debt and assets and liabilities recognised at fair value through profit or
loss, cash flows from financial assets allocated to operating activities and cash flows from interest paid and received. In particular,
this includes interest and dividend income, interest expense and income tax expenses.
Consolidated financial statements Consolidated cash flow statement 123
Cash flow from investing activities essentially results from receipts and payments in conjunction with the sale or acquisition
of financial assets, property, plant and equipment and intangible assets, as well as changes in the scope of consolidation.
In addition to investor relations, cash flow from financing activities also includes changes in subordinated liabilities.
The reported cash and cash equivalents are composed of cash, which consists of cash on hand and balances at central banks.

124
Consolidated financial statements
Notes – Contents
Notes to the financial statements 126
1 Principles of reporting 126
2 Accounting standards and interpretations applied 126
3 Accounting policies 127
4 Principles of consolidation 129
5 Group of consolidated entities 130
6 Segment reporting 131
Notes on accounting policies 137
7 Financial instruments 137
8 Cash 143
9 Investments carried at equity 143
10 Intangible assets 143
11 Property, plant and equipment 143
12 Impairment of property, plant and equipment and
intangible assets including goodwill 144
13 Leases 145
14 Investment property 145
15 Non-current assets and groups of assets held for sale 146
16 Provisions 147
17 Income taxes 147
18 Subordinated capital 148
19 Equity 148
20 Off-balance sheet transactions 149
Notes to the income statement 150
21 Net interest income 150
22 Allowance for losses on loans and advances 150
23 Net commission income 151
24 Net income from hedge accounting 151
25 Net gain from financial instruments recognised at fair value through profit or loss 152
26 Net income from financial assets 152
27 Net income from investments carried at equity 153
28 Other operating income 153
29 Administrative expense 154
30 Restructuring expenditure and income (net) 156
31 Income tax expense 156
32 Earnings per share 157

Consolidated financial statements Notes – Contents 125
Notes to the statement of financial position 158
33 Cash 158
34 Loans and advances to banks 159
35 Loans and advances to customers 160
36 Allowance for losses on loans and advances 161
37 Positive fair value of derivative hedging instruments 164
38 Financial assets recognised at fair value through profit or loss 164
39 Financial assets 165
40 Investments carried at equity 167
41 Intangible assets 167
42 Property, plant and equipment 169
43 Investment property 170
44 Income tax assets 170
45 Other assets 171
46 Non-current assets and groups of assets held for sale 171
47 Deposits by banks 172
48 Amounts due to customers 173
49 Securitised debt 174
50 Negative fair value of derivative hedging instruments 175
51 Financial liabilities recognised at fair value through profit or loss 176
52 Provisions 177
53 Income tax liabilities 184
54 Other liabilities 184
55 Subordinated capital 185
56 Equity 185
Other notes 186
57 Adjustments due to changes in accordance with IAS 8 186
58 Trust activities 187
59 Contingent liabilities and similar obligations 187
60 Risk management 188
61 Disclosures on financial instruments 188
62 Collateral 194
63 Related party disclosures 194
64 Number of employees 201
65 Events after 31 December 2010 201
66 List of investment holdings 201
67 Corporate governance 205

126
Consolidated financial statements
Notes to the financial statements
1 Principles of reporting
Landesbank Berlin Holding AG (hereinafter referred to as the “Holding”) is the parent company of the Landesbank Berlin Holding Group,
Berlin, Germany (hereinafter referred to as the “Group”). Its head office is in Berlin, Germany, and it is entered in the commercial register
there. The Group’s parent company is Regionalverbandsgesellschaft der S-Finanzgruppe mbH (RVG), based in Neuhardenberg, Germany.
As at 31 December 2010, it directly and indirectly holds 98.66 % of shares in Landesbank Berlin Holding AG.
This report is a full annual financial report as defined by Article 37v of the Wertpapierhandelsgesetz (WpHG – German Securities
Trading Act). The consolidated financial statements of Landesbank Berlin Holding for the financial year 2010 found here were prepared in
accordance with the International Financial Reporting Standards (IFRS) applicable in the EU and also the applicable provisions in accordance
with Article 315a (1) of the Handelsgesetzbuch (HGB – German Commercial Code).
Furthermore, the German Accounting Standards (GAS) passed by the German Accounting Standards Committee and promulgated
by the Federal Ministry of Justice in accordance with Article 342 (2) of the German Commercial Code by 31 December 2010 were
observed.
Further information on the accounting standards and interpretations applied can be found in the note below.
The Holding also prepares and publishes a Group management report in accordance with Article 315a HGB in conjunction with Articles
315, 340k HGB. The relevant GAS were also complied with.
Unless otherwise indicated, all amounts are shown in millions of euro (€ million). In isolated cases there may be minor deviations
in additions due to rounding figures up or down.
2 Accounting standards and interpretations applied
In accounting, the Group takes into account all relevant and applicable accounting standards and interpretations of the International Financial
Reporting Standards that have been endorsed in EU law and are effective as at the end of the reporting period. The 2010 consolidated
financial statements are based on the IASB framework concept and the IFRS and interpretations relevant to them. There was no voluntary,
early adoption of applicable accounting standards and interpretations in the Group.
In the financial year, the following material amendments and new accounting standards and interpretations were effective for the
first time:
IAS 27 (revised) “Consolidated and Separate Financial Statements”: In particular, the new additions relate to accounting for
transactions that lead to a change in the shareholding of a parent company in a subsidiary:
If the transaction does not result in a loss of control over the subsidiary by the parent, it is accounted for in equity.
If the transaction results in a loss of control over the subsidiary by the parent and leads to an investment with a significant influence,
the remaining equity investment is carried at fair value from the time at which control is lost and no longer at the carrying amount of the
value of the investment on disposal in the context of deconsolidation.
The above amendments are to be applied prospectively. The amended regulations were applied in the consolidated financial statements
as at 31 December 2010; material disclosures on this can be found in note 5.
IFRS 3 (revised) “Business Combinations”: The revised IFRS 3 is effective for the first time for financial years beginning on or after
1 July 2009. The purchase method is still the only approach permitted for accounting for business combinations. In addition to changes
in disclosures in the notes, in particular the amendments provide additional specifications for selected regulations on determining the acquirer
and on accounting for assets and liabilities at fair value. The option for calculating goodwill using the purchased goodwill method was
extended to include the full goodwill method. The option can be exercised again for each new business combination. Ancillary costs of
business combinations are taken to profit or loss in the period in which they are incurred.

All the above amendments are to be applied prospectively. No company acquisitions within the meaning of IFRS 3 were performed in the
2010 financial year.
The amendments to standards or interpretations effective for the first time in the reporting year will have no material effect on the
net assets, financial position and results of operations of the Group.
The future adoption of accounting standards or interpretations not yet effective as at the end of the reporting period, to the extent
that this can be quantified as at the end of the reporting period, will have no material effect on the net assets, financial position and results
of operations of the Group; they will have no fundamental effect on accounting policies.
On 12 November 2009, the IASB published IFRS 9 “Financial Instruments” with revised regulations on the categorisation and
measurement of financial assets. This was then supplemented by the IASB on 28 October 2010 with further regulations on the categorisation
and measurement of financial liabilities. The new publications are part of a three-part revision of IAS 39. In its current form (part 1), IFRS 9
contains the new provisions on the requirements for the classification and measurement of financial instruments that fall within the scope of
IFRS 9. Binding, first-time adoption of the classification and measurement requirements is scheduled for annual periods beginning on or
after 1 January 2013; early adoption is permitted but not intended by the Group.
The new IFRS 9 as not yet been endorsed in EU law. First-time adoption prior to endorsement is not permitted within the EU area.
The Group is monitoring the developments in connection with the new IFRS 9 and other steps in the revision of IAS 39, as yet still in the
draft stage, in both a critical and timely manner. The Group is preparing itself accordingly for future first-time adoption. As this involves
fundamental changes to the recognition of financial instruments and the full extent of the requirement is not known at the current time, the
possible qualitative and quantitative effects of the amendments on the accounting policies of the Bank cannot yet be estimated.
Furthermore, the relevant regulations of the German Commercial Code and the German Accounting Standards (GAS) passed by
the German Accounting Standards Committee and promulgated by the Federal Ministry of Justice by 31 December 2010 in accordance
with Article 342 (2) HGB were observed in these consolidated financial statements.
3 Accounting policies
Consolidated financial statements Notes to the financial statements 127
Basic principles
The consolidated financial statements of the Holding as at 31 December 2010 are prepared in accordance with International Financial
Reporting Standards (IFRS).
Items are recognised and measured under the assumption of the going concern principle. Income and expenses are recognised
in the income statement pro rata temporis in the period to which they relate.
The main accounting policies applied in the preparation of these consolidated financial statements and the main judgements made
by the management are detailed below. These notes initially explain general aspects; detailed information can be found in notes 7 to 20.
Unless stated otherwise, the policies described were applied uniformly and consistently to the reporting periods presented.
Uncertainty in estimates and assumptions
The presentation of the net assets, financial position and results of operations in the consolidated financial statements is dependent on
the recognition and measurement policies as well as assumptions and estimates used as the basis for the preparation of the consolidated
financial statements.
The estimates and assessments required in IFRS accounting are made in line with the respective standard, reassessed on an
ongoing basis and based on historical experience and other factors, including expectations with regard to future events that appear
reasonable under the given circumstances.
Stock exchange prices and internal measurement models with current market parameters are used for the measurement of assets
and liabilities carried at fair value.

128
Consolidated financial statements Notes to the financial statements
For a small number of financial instruments, it was still not possible to determine fair value using either quoted prices or directly or indirectly
(derived from prices) observable input parameters (IAS 39.AG71– 73). In line with the fair value hierarchy of IAS 39, measurement models
were used in these cases (IAS 39.AG74– 79). The proclamations of the International Accounting Standards Board (IASB) on the application
of valuation models of October 2008 were complied with. Details of this plus information on assumptions and estimates can be found in
other notes (note 61).
The recognition of property, plant and equipment and intangible assets entails estimates to determine their fair value at the date
of acquisition. This applies to assets that were acquired as part of a business combination such as goodwill. The annual impairment test for
goodwill is based on the discounted cash flow method. This involves estimating the cash flows expected in future.
The expected useful life of assets is also estimated. The calculation of the fair values of assets and liabilities and the useful lives of
assets are based on management assessments made in line with the standards on the basis of all available information.
Other estimate uncertainty relates to allowances for losses on loans and advances (note 7.3), provisions (note 16) and deferred
taxes (note 17).
Currency translation
In the Group, transactions in foreign currency and the financial statements for the net assets, financial position and results of operations of
foreign entities are translated in line with IAS 21. Transactions concluded in foreign currency are translated into euro at the spot exchange
rate on the date of the transaction on first-time measurement.
Gains and losses on the remeasurement of monetary items are taken to profit or loss. In the currency translation of monetary items
classified as available for sale, only changes in value that are due to the exchange rate are recognised in profit or loss. The changes in value
due to other risks are recognised in equity.
For non-monetary items, the entire change in value is recognised in equity.
In the Group, the annual financial statements of foreign entities are translated in line with the functional currency concept in accordance
with IAS 21. For these foreign entities, foreign currencies are translated into the functional currency (euro) in line with the temporal method.
Exchange gains and losses are taken to profit or loss.
The other companies operate independently in GBP and USD. The functional currency is therefore GBP or USD and prices are translated
in accordance with IAS 21 using the modified closing rate method. Exchange gains and losses of these companies are recognised
separately in equity.
Changes in accounting policies
The accounting policies used in the consolidated financial statements for 2009 have been essentially retained for these consolidated financial
statements, with the exception of the amendments shown below.
The extreme market situation that has persisted since 2008 relaxed further in the course of the reporting year. Increased levels of
activity were observed on the markets, even as against 2009. This was demonstrated by increased issuing activity, higher trading volume
and more resilient price quotations. Prices provided by third-party operators have reached a level comparable to that before the financial
crisis. However, there were still financial instruments for which it was not possible to use prices of transactions on an active market in order
to ascertain their fair value (IAS 39.AG71-73).
For the purposes of reporting as at 31 December 2010, adjustments in accordance with IAS 8.42 were made to the comparative
figures as at 31 December 2009. A detailed presentation of these adjustments and their quantitative effects can be found in the other
notes (note 57).

4 Principles of consolidation
Consolidated financial statements Notes to the financial statements 129
The consolidated financial statements of the Holding were prepared using uniform accounting policies in accordance with IAS 27.24. The
consolidated financial statements essentially include all companies controlled directly or indirectly by the Group and the companies included
under the equity method.
25 subsidiaries, including special purpose entities (SIC-12), ten associates and five joint ventures of subordinate importance for
the Group’s financial position and results of operations are not included. They are reported as financial assets in the statement of financial
position and are measured according to the corresponding regulations. The scope of consolidation is defined using value criteria such as
total assets, equity and the annual results of Group companies both as absolute figures and as ratios of the above criteria between the
Group and individual companies. The ratios are checked at the level of individual Group companies and of all the companies not included
in the consolidated financial statements.
Companies that are not classed as controlled companies, in spite of a voting majority, and companies that are classed as controlled
companies, in spite of the Group not having a voting majority, are indicated in the list of investment holdings (note 66). In addition, SIC 12
companies must be consolidated under certain conditions. This also applies to entities such as special funds and ABS constructions,
details of which can be found in note 5 “Scope of consolidation”.
In capital consolidation, assets, liabilities and contingent liabilities of acquired companies are completely remeasured at fair value at
the date of acquisition. Positive differences between the cost of the business combination and the net fair value of the assets and liabilities
are capitalised as goodwill. Transactions in the equity securities of controlled companies that do not result in a loss of control are shown as
owner transactions in equity (economic entity model). In subsequent years, goodwill is carried at cost, subject to an annual impairment test.
Impairment is recognised under other operating expenses. After checking the measurement of assets or liabilities and contingent liabilities
again, negative differences are taken to profit or loss together with gains on deconsolidation under other operating income.
Intra-group receivables and liabilities, income and expenses arising from intra-group transactions and any intra-group results are
eliminated in accordance with IAS 27.20 et seq. and IAS 28.20 et seq.
All fully consolidated companies and joint ventures and associated entities carried at equity prepared their annual financial statements
as at the end of the reporting period 31 December 2010. Funds and SIC 12 companies with a different reporting date presented
audited reports as at the end of the reporting period 31 December 2010. Thus, all material transactions in the reporting year were included
in the consolidated financial statements. The inclusion of financial statements with a reporting date other than that of the Group is indicated
in the list of investment holdings.
Non-consolidated subsidiaries are categorised as available for sale and reported at fair value under financial assets in line with
IAS 39.46. If there is no listed price on an active market and the fair value cannot be reliably determined, measurement is at cost in line
with IAS 39.46 (c). Joint ventures where there is a contractual agreement whereby two or more parties undertake an economic activity
which is subject to joint control are carried at equity and reported under a separate item in the statement of financial position in accordance
with IAS 31.38.
An associated entity is one over which the Group has the power to exert significant influence by participating in its financial and
operating policy decisions but which is neither a subsidiary nor a joint venture of the Group. Companies not classed as an associated entity
despite an interest of more than 20 % and companies classed as an associated entity despite an interest of less than 20 % are indicated in
the list of investment holdings.
Associated companies are measured in accordance with the equity method. The Group’s share of changes in the equity of the
associated entities is reported directly in the equity of the Group. Gains and losses of associated entities are recognised pro rata under
“Net income from investments carried at equity”.
Changes in the carrying amount of associates’ equity are recognised on the basis of audited financial statements which are adapted
to comply with uniform Group accounting policies via reconciliations.
Shares in joint ventures and associated entities not carried at equity are measured in accordance with IAS 39.
Shares in subsidiaries and associated entities held for sale are measured and reported separately in line with IFRS 5.

130
Consolidated financial statements Notes to the financial statements
5 Group of consolidated entities
As at 31 December 2010, 93 companies are included in the consolidated financial statements in addition to Landesbank Berlin Holding AG;
disclosures on other companies included in the consolidated financial statements under the equity method can be found in note 9. These
companies represent the scope of consolidation and can be seen in the list of investment holdings. The changes in subsidiaries in the
scope of consolidation in the 2010 financial year were as follows:
31.12.2009 Additions Disposals 31.12.2010
Subsidiaries 20 0 3 17
Special purpose entities (SIC-12)
Special funds 11 0 0 11
Holdings in mutual funds 3 1 3 1
Other special purpose entities (SIC-12) 70 0 6 64
Total 104 1 12 93
In October 2010, LBB acquired the shares in Berlin Hyp held by Norddeutsche Landesbank, amounting to 8.07 %, and consequently
increased its stake to 99.66 %. Consideration of € 100 million was paid in cash to the bearers of the non-controlling interests. The carrying
amount of the net assets of Berlin Hyp (not including goodwill from the original acquisition) amounted to € 1,058 million at this time, while
the carrying amount of the additional shares acquired was € 85 million. The difference of € 15 million between the cost and the carrying
amount of the acquired shares was recognised in equity in retained earnings.
Furthermore, LBB participated in a capital increase at Berlin Hyp in the amount of around € 100 million and concluded a profit and
loss transfer agreement with Berlin Hyp. On 9 December 2010, the majority of the Extraordinary General Meeting of Berlin Hyp approved
the demand by the Board of Management of LBB as the representative of the main shareholder to transfer the shares of the minority shareholders
in Berlin Hyp to the main shareholder in accordance with Article 327a (1) sentence 1 of the German Stock Corporation Act in return
for appropriate cash compensation. Following the enactment of this resolution through entry in the commercial register on 25 January 2011,
LBB has held 100 % of shares in Berlin Hyp.
Additions to the scope of consolidation
Since 31 December 2009, the following company has been added to the scope of consolidation:
Additions
LBB Interest Rate Opportunity Fund, Berlin Issue of new fund by LBB-INVEST, Berlin
Company disposals and other disposals from the scope of consolidation:
Disposals
Keppler-Global Alpha-LBB-INVEST, Berlin Reduction of holding in this mutual fund to less than 50 % and therefore
measured using the equity method
Hohenzollerndamm 134 GbR, Berlin
Check Point Charlie Ltd., Saint Helier / Jersey (Channel Islands)
Portfolio Purchasing Company 1 Ltd., Saint Helier / Jersey (Channel Islands)
Merger with “Grundstücksgesellschaft Berlin” mit beschränkter Haftung, Berlin
Portfolio Purchasing Company 2 Ltd., Saint Helier / Jersey (Channel Islands)
Portfolio Purchasing Company 3 Ltd., Saint Helier / Jersey (Channel Islands)
Portfolio Purchasing Company 4 Ltd., Saint Helier / Jersey (Channel Islands)
Deconsolidation following transfer to Landesbank Berlin AG, Berlin
FlexBond-Plus-INVEST, Berlin Repayment of capital resources
VermögensStruktur Chance / Inhaber-Anteile, Berlin Repayment of capital resources
Grundstücksgesellschaft “Berlin” mit beschränkter Haftung, Berlin Merger with LBB Grundstücks-Gesellschaft mbH der Landesbank Berlin AG, Berlin
RR II R -11281, City of Wilmington / Delaware Liquidated under the tender option bond programme
Berlin Hyp Immobilien GmbH, Berlin Deconsolidation owing to immateriality
The changes in the group of consolidated entities did not have a material effect on the net assets, financial position or results of operations
of the Group.

6 Segment reporting
Consolidated financial statements Notes to the financial statements 131
The Landesbank Berlin Holding Group is a universal bank. The Group conducts its business activities in the four core segments of Retail
Banking, Regional Corporate Banking, Capital Markets and Real Estate Financing. Interest Management, Other and Consolidation are also
reported as segments.
Description of segment results
Operating profit in the Retail Banking segment increased by € 76 million to € 149 million (previous year: € 73 million).
At € 404 million, net interest income was up 13 % or € 47 million year-on-year. Deposit volumes grew by 7 % as at the end of the
reporting period as against 31 December 2009 in the Retail Banking segment. Owing to the successful launch of new account models in
2009, the number of new accounts opened rose to around 89,200 in 2010. The number of accounts using new account models increased
to 716,400. The volume of mortgage loan renewals grew by 22 % year-on-year to € 190 million.
Allowances for losses on loans and advances reduced significantly by € 18 million to € 42 million. This trend was significantly
influenced by the positive risk experience in credit card and consumer loan business.
Net fee and commission income was down € 7 million year-on-year at € 194 million. While net fee and commission income from
card business increased by € 7 million, net fee and commission income from payment transaction services was € 8 million lower than in the
previous year. Net fee and commission income from securities business was slightly down on the prior-year figure (€ – 3 million). Sales of
mutual funds increased by 8 % as against the previous year to € 339 million. The growth in sales of insurance products continued. In the
year under review, net policy premiums were up 8 % year-on-year. Property insurance in particular contributed to this growth with a marked
increase of 38 %. In national credit card business (co-branding), both fee and commission income (9 %) and credit card accounts (10 %)
increased as against 31 December 2009.
Other operating income essentially included a non-recurring effect from the sale of the ATOS Worldline Processing GmbH investment.
At € 442 million, administrative expenses were up € 29 million on the previous year’s level. This includes expenses for headcount reduction
measures on account of the planned implementation of new sales structures and the greater expense for the IT migration scheduled for
2011. Administrative expenses include depreciation and amortisation of € 14 million (previous year: € 15 million).
The Regional Corporate Banking segment generated an operating profit of € 107 million, thereby exceeding its figure for the previous year
by € 19 million (previous year: € 88 million). The segment thus continued its positive development in 2010 as well.
Net interest income increased sharply year-on-year by € 19 million to € 158 million. Allowances for losses on loans and advances
climbed as against 2009 but remained at a low level of € 6 million overall.
New lending volume rose by 30 % as against the same period of the previous year. Nonetheless, the portfolio of loans and advances
to customers was down on the figure for 31 December 2009 following transfers to the Capital Markets segment. By contrast, customer
deposits increased slightly from their already high level by € 70 million to € 5,119 million.
The number of customers fell slightly following the transfer of management responsibilities to other segments and amounted to
around 64,400 as at 31 December 2010.
Net fee and commission income improved by € 8 million to € 42 million. Income from export financing business increased in particular.
At € 88 million, administrative expenses were only slightly up on the previous year’s level (€ 86 million).

132
Consolidated financial statements Notes to the financial statements
The operating profit of the Real Estate Financing segment was € 172 million (previous year: € 191 million).
This result was heavily influenced by decline in net interest income of € 37 million and in income from financial instruments recog-
nised at fair value through profit or loss of € 61 million. The flattening of the yield curve and fluctuations on the markets led to corresponding
reductions in the Treasury of Berlin Hyp compared with the very profitable result in 2009.
The core business (commercial real estate financing business) was very successful. Thanks to good figures for new business and
successful portfolio management, net interest income increased to € 295 million (previous year: € 267 million).
In 2010, the Real Estate Financing segment benefited from positive developments in the German real estate market and in European
core markets. The positive market sentiment is also reflected in the segment’s new business. The contract volume rose to € 6.3 billion,
significantly higher than the previous year’s result (€ 4.8 billion). At the same time, risk and margin requirements were unchanged. As at
31 December 2010, the portfolio of loans and advances to customers in our core business was up € 0.6 billion on the same period in the
previous year at € 26.3 billion.
Significantly lower allowances for losses on loans and advances of € 74 million (previous year: € 140 million) and the improved net
fee and commission income of € 26 million (previous year: € 17 million) also had a positive effect on the segment’s result.
Administrative expenses remained unchanged at € 115 million. As in the previous year, this figure includes depreciation and amortisation
of € 5 million.
The Capital Markets segment performed well in the year under review and achieved an operating result of € 213 million (previous year:
€ 215 million). Despite the considerable volatility on international money and capital markets, the result therefore came close to that of the
previous year.
The credit rating crisis in the euro zone led to a marked expansion in credit spreads and consequently to price falls in European
government bonds and financial securities (in particular, in the PIIGS nations, Portugal, Italy, Ireland, Greece, Spain).
Net interest income fell by € 87 million as against 2009 to € 346 million, mainly as a result of the drop in income from money
market activities. In the same period of 2009, these had still benefited from the special situation with interbank rates far exceeding the
ECB’s tender rates.
Net reversals of allowances for losses on loans and advances, particularly as a result of the positive trend in credit risks in the structured
financing portfolio, which is in the process of being reduced, led to income of € 19 million in the period under review. No significant
risk provisioning was recognised in the previous year. At € 18 million, net fee and commission income was up € 1 million on the figure for the
previous year in 2010.
As a result of the market developments described, net income from financial instruments recognised at fair value through profit or
loss was € 7 million down on the same figure for the previous year with an earnings contribution of € 6 million. At € – 24 million, net income
from financial assets was up € 71 million on 2009. It should be noted that the figure for the previous year was reduced by impairment losses
on funds and lower carrying amounts for bonds held by Icelandic banks.
At € 155 million, administrative expenses were up € 10 million on the previous year’s level. Administrative expenses include depreciation
and amortisation of € 6 million (previous year: € 7 million).
The market situation in recent months also influenced customer business, with momentum having dwindled considerably as against
the previous year.
Compared to 31 December 2009, certificate volume climbed € 0.4 billion to € 2.9 billion. At € 11.6 billion, the assets under management
of LBB-INVEST matched the level of the previous year.
In international business, a lending volume of € 1.2 billion (up € 31 million) was recognised despite the restrictions on lending business
that still applied, in part, during the year. This was achieved through several major transactions in the target region (Central / Eastern Europe
and CIS), which was extended to include Turkey in 2010.

Consolidated financial statements Notes to the financial statements 133
The operating profit of the Interest Management segment was € – 115 million (previous year: € 8 million) in 2010.
The central management of the banking book is reported in Interest Management. This is based on items resulting from the Bank’s
interest-bearing customer business. Decisions in Interest Management fall within the responsibility of the Asset Liability Committee, which
includes all of the members of the Board of Management of Landesbank Berlin AG. Resolutions are implemented by the units responsible
for the respective products in the Capital Markets business area.
All of the market risks reported in the Interest Management segment are included in the Bank-wide risk management concept and
limited accordingly.
During 2010, the low interest scenario remained intact initially. The yield on ten-year German government bonds fell to 2.12 % by
the end of August. Against the backdrop of the continuing economic stabilisation in the euro zone – particularly Germany – capital market
interest rates subsequently rose sharply but fluctuated markedly in the process. Given that money market interest rates remained stable in
view of the European Central Bank’s keeping interest rates low, the yield curve again became steeper at the end of the year.
The reluctance previously seen in investments also continued in this market environment.
Existing transformation risk positions suffered under the trend in capital market interest rates described and, in view of the momentum in
the continuing rise in interest rates, were hedged over the rest of the fourth quarter.
Income was also depressed by the rapid growth in the volume of floating-rate customer deposits. Their internal interest rate – derived
from historically valid interest rates – exceeded the neutralising investment undertaken at current market rates in Interest Management.
As a result of the financial reporting regulations on categorisation, interest expenses in net interest income are still offset by interest
income from hedge transactions in the net income from financial instruments recognised at fair value through profit or loss.
In the period under review, the operating result in the Other segment result benefited from the reversal of provisions that were no longer
required and improved by € 39 million year-on-year to € – 206 million.
The Other segment comprises the Group’s management and service functions. Services in the back office and head office departments
are recognised at full cost by way of cost allocation. After cost allocation, the operating profit in the Other segment primarily consists
of the overhead functions that cannot be assigned to other segments in terms of business management. Other items reported in this
segment include non-interest-bearing balance sheet items, such as non-current assets and the associated write-downs in administrative
expenses in the amount of € 28 million (previous year: € 28 million).
The Consolidation segment is used in particular to report the services provided between the individual segments of the Group.

134
Consolidated financial statements Notes to the financial statements
Segment results
in € million
1.1. – 31.12.
2010
Retail Banking Regional Corporate Banking Real Estate Financing
1.1. – 31.12.
2009
1.1. – 31.12.
2010
1.1. – 31.12.
2009
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Net interest income 404 357 158 139 357 394
Allowance for losses on loans and advances 42 60 6 1 74 140
Net interest income after risk provisioning 362 297 152 138 283 254
Net commission income 194 201 42 34 26 17
Net income from hedge accounting 3 5
Net gain from financial instruments recognised at fair value
through profit or loss – 14 47
Net income from financial assets 6 1 – 4
Net income from investments carried at equity 6 – 16
Other operating income 23 3 1 2 – 7 – 14
Administrative expenses 442 413 88 86 115 115
Operating result before restructuring 149 73 107 88 172 194
Restructuring expenditure and income (net) – 3
Operating profit / earnings before taxes 149 73 107 88 172 191
Segment assets 1) 5,459 5,293 4,614 5,248 51,048 51,769
Segment liabilities (not including equity) 1) 14,473 13,505 6,040 6,156 42,200 42,969
Capital resources in accordance with SolvV 254 262 238 251 1,050 1,117
Tied-up equity (average) 2) 309 305 270 222 877 943
Employee capacity (reporting date) 2,265 2,324 289 285 452 452
Return on equity 3) 48.2 % 23.9 % 39.6 % 39.6 % 19.6 % 20.3 %
Cost-income ratio 3) 69.8 % 75.6 % 43.8 % 49.1 % 31.9 % 25.6 %
1) Segment assets / liabilities not including tax items
2) For the Group as a whole, the average IFRS equity (not including dormant participation) is reported in line with industry practices;
in the segments, the capital required in line with financial procedures is reported.
3) Calculated with rounded figures in € million
4) Including expenses for the repayment of dormant participations (1.1. – 31.12.2010: € 51 million; 1.1. – 31.12.2009: € 51 million)
5) Figures for the previous year have been adjusted

Capital Markets Interest Management Other 4) Consolidation Group
1.1. – 31.12.
2010
Methods
1.1. – 31.12.
2009 5)
1.1. – 31.12.
2010
1.1. – 31.12.
2009
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Consolidated financial statements Notes to the financial statements 135
1.1. – 31.12.
2010
1.1. – 31.12.
2009
1.1. – 31.12.
2010
1.1. – 31.12.
2009 5)
346 433 – 474 – 382 – 63 – 78 – 3 – 1 725 862
– 19 1 1 1 – 17 105 185
365 432 – 475 – 382 – 64 – 61 – 3 – 1 620 677
18 17 – 2 – 4 – 1 – 3 – 3 274 262
2 – 23 2 3 7 – 15
6 13 357 418 349 478
– 24 – 95 – 13 – 22 – 107
2 2 1 – 1 8 – 14
– 1 14 10 1 174 155 – 116 – 120 84 41
155 145 8 15 315 334 – 120 – 123 1,003 985
213 215 – 115 8 – 206 – 240 – 3 – 1 317 337
– 5 – 8
213 215 – 115 8 – 206 – 245 – 3 – 1 317 329
63,327 69,670 13,458 15,636 2,760 2,854 – 9,964 – 7,464 130,702 143,006
50,723 58,708 23,010 24,532 2,064 2,498 – 9,890 – 7,396 128,620 140,972
771 1,035 112 151 122 75 2,547 2,891
959 998 643 690 – 366 – 807 2,692 2,351
435 419 2,544 2,529 5,985 6,009
22.2 % 21.5 % neg. 1.2 % 11.8 % 14.0 %
44.4 % 40.2 % neg. 65.2 % 70.4 % 65.4 %
Segment reporting in accordance with IFRS 8 is based on the management approach, which means that the form and content of internal
reporting provide the basis for external segment reporting. The reported segments represent the organisational structure of the Group as
shown in internal reporting. Internal reporting provides regular information to the chief operating decision maker on segment results. The chief
operating decision maker is the Board of Management, which decides the allocation of resources and assesses the segments’ performance
on the basis of this information.
Internal reporting is based on IFRS figures and the statement of reconciliation demanded by IFRS 8.28 is therefore not necessary.
Consolidation amounts from services provided between the individual segments are reported in the Consolidation segment.
Income and expenses are allocated to segments in accordance with the principle of causality. In order to allocate third-party net
interest income to the segments, the market interest rate method is applied for interest, supplemented by net interest income from the
application of the IFRS accounting policies on which the consolidated financial statements are based. For each product, a margin result
is calculated as the difference between the customer interest rate and an internal interest rate on an individual transaction basis.
All other income and credit risk provisions are allocated to the segments on a counterparty basis. The administrative expense
consists of staff costs, other administrative expenses, depreciation of property, plant and equipment and amortisation of other intangible
assets (excluding goodwill). Inter-segment services are recognised at full cost by way of cost allocation. Within staff costs, the interest
effect on the transfer of pensions reserves is now allocated to the “Other” segment, where the provisions are also invested.

136
Consolidated financial statements Notes to the financial statements
Segment assets include the recognised assets of the respective segment. For the segments operating in the area of banking business,
these are essentially loans and advances to customers; in Capital Markets, these also include loans and advances to banks, financial assets
(securities), assets held for trading and positive fair values of derivatives. Accordingly, segment liabilities are defined as recognised liabilities,
i.e. primarily amounts due to customers and, in Capital Markets, deposits by banks, securitised liabilities, liabilities held for trading and
negative fair values of derivatives. Income tax assets / liabilities are not included in segment assets / liabilities.
LBB provides the segments with the capital required according to economic procedures and calculates the investment benefit,
which is included in the net interest income of the respective segment. LBB uses an interest rate corresponding to a risk-free, rolling
long-term investment on the capital market. The average equity capital tie-up is reported for each segment. This subsequently forms the
reference base for determining the return on equity, which is calculated for the segment results before taxes.
The number of employees reported is the employee capacity (converted to full-time employees, not including trainees) at the end
of the reporting period.
The cost-income ratio is calculated as the ratio of administrative expenses and the total of net interest income, net fee and commission
income, net income from hedges, net income from financial instruments recognised at fair value through profit or loss, net income from
financial investments, net income from investments carried at equity and other operating income.
The return on Group equity is calculated on the basis of average equity according to IFRS.
Expenses for the repayment of dormant participations are recognised in the “Other” segment.
Information at Company level
The geographical distribution of the Group’s income is shown in the following table. The breakdown is essentially based on the location of
the company preparing accounts.
in € million
1.1. – 31.12.
2010
Domestic International Group
1.1. – 31.12.
2009 3)
1.1. – 31.12.
2010
1.1. – 31.12.
2009
1.1. – 31.12.
2010
1.1. – 31.12.
2009 3)
Total income 1) 1,199 1,163 121 159 1,320 1,322
Operating profit / earnings before taxes 226 201 91 128 317 329
Non-current assets 2) 1,192 1,184 39 39 1,231 1,223
1) Total of net interest income after risk provisioning, net fee and commission income, net income from hedges, net income from financial instruments recognised at fair value through profit
or loss, net income from financial investments, net income from investments carried at equity and other operating income
2) Total of property, plant and equipment and intangible assets
3) Figures for the previous year have been adjusted
Information on products and services (IFRS 8.32) can be found in the notes to the income statement. Information on individual customers is
not shown as this does not meet the materiality threshold of IFRS 8.34.

Notes on accounting policies
7 Financial instruments
The Group recognises financial instruments, including financial assets and liabilities, in line with IAS 39. On first-time measurement, all financial
instruments are measured at cost on addition, which is the fair value of the amount given or received in exchange for the financial instrument.
In subsequent measurement, both primary financial assets and primary financial liabilities are carried in line with their category, partly at
amortised cost and partly at fair value. Derivative financial instruments are measured solely at fair value. Specific subsequent measurement
is based on which category these financial instruments are assigned to. First-time recognition of financial instruments is as at the trade date
(trade date accounting).
Financial instruments are broken down by class. In addition to distinguishing between items of the statement of financial position, a
key feature of categorisation is subsequent measurement at either fair value or amortised cost. There is also a further breakdown.
7.1 Categorisation of financial assets and liabilities
Consolidated financial statements
The Group assigns financial assets and liabilities to the (measurement) categories shown below. However, there are differences in the
reporting of financial assets and liabilities, so categories do not correspond directly to statement of financial position items. A reconciliation
of the respective carrying amounts per category can be found in note 61 of this report. Information on permissible changes made in
classification to these categories (re-categorisations) can also be found here.
Loans and receivables (L & R)
Loans made directly to debtors and receivables due directly from debtors are allocated to this category. The Group reports these under
loans and advances to banks and loans and advances to customers. Acquired loans and receivables and securities are also shown in this
category if they are not or were not traded in an active market (e.g. ABS securities). These are reported under financial assets. Measurement
is at amortised cost less impairment.
Measurement is at amortised cost less impairment. Premiums / discounts are recognised in profit or loss over their term as net
interest income in line with the effective interest method. In the case of financial instruments re-categorised in 2008 and previously reported
as available for sale, the net income from re-measurement – previously recognised in the revaluation surplus – is recognised over the term
as net interest income or is immediately eliminated in profit or loss on disposal of the financial assets.
Held-to-maturity (HTM)
Bonds and other fixed-interest securities that have a fixed duration and are held to maturity are reported in this category. The intention to
hold also includes the ability to hold the securities until maturity. The Group reports securities in this category exclusively under financial assets.
Measurement is at amortised cost less impairment. Premiums and discounts are recognised in profit or loss over their term, as are
interest payments, as net interest income in accordance with the effective interest method.
137

138
Consolidated financial statements Notes on accounting policies
Financial assets and liabilities recognised at fair value through profit or loss
Assets and liabilities held for trading (HFT)
All financial assets and liabilities held for trading purposes are assigned to this sub-category. These are primary financial instruments –
bonds and other fixed-income securities, shares and other non-fixed-income securities – and trading book derivatives with a positive fair
value (assets held for trading) on the one hand and obligations from short sales of securities and derivative financial instruments with
negative fair values (liabilities held for trading) on the other. Investment book derivatives are also assigned to assets or liabilities held for
trading. Derivative financial instruments used in IAS 39 hedge accounting are not assigned to this category.
Assets and liabilities held for trading including investment book derivatives are reported on the statement of financial position under
assets and liabilities recognised at fair value through profit or loss. They are measured at fair value as at the end of each reporting date.
Gains and losses on remeasurement, currency translation effects and current interest and dividend payments and broker commission are
recognised under net income from financial instruments recognised at fair value through profit or loss.
Financial assets and liabilities designated at fair value (fair value option)
The Group uses the fair value option and designates selected financial assets and liabilities at fair value. For assets, the fair value option is
applied to bonds and shares if these are managed on a fair value basis or in order to avoid measurement incongruencies in economic hedges
(accounting mismatches). Fair value option liabilities are securitised liabilities containing separable embedded derivatives. In addition, the
fair value option was used for selected securitised liabilities and liability promissory notes to avoid an accounting mismatch.
Financial instruments assigned to this sub-category are recognised at fair value on first-time and subsequent measurement. They
are also a component of the statement of financial position item for financial instruments measured at fair value through profit or loss. Gains
and losses on remeasurement are taken directly to the corresponding income item. Current interest and dividend payments and commission
from these financial instruments are reported in net interest and net commission income.
Financial assets available for sale (AFS)
This category covers the non-derivative financial assets that are not allocated to any of the above categories. These essentially include
interest-bearing securities, shares, investments and associated companies not included in consolidation or carried at equity. They are
reported under financial assets. The Group also assigns loans with a value that can be derived from parameters observed on the market
to the available for sale category. They are reported under loans and advances to banks and loans and advances to customers.
Assets are measured at cost on the date of acquisition. Subsequent measurement is at fair value. Changes in value that are not
impairment are recognised separately in equity (revaluation surplus). On disposal of the financial asset, the cumulative net gain or loss on
remeasurement recognised in the revaluation surplus is reversed and reported under net income from financial assets. In the event of
impairment, the revaluation surplus is reversed to profit or loss and the impairment amount is taken to net income from financial assets.
Reversals of impairment losses on borrowing securities are taken to profit or loss up to the maximum amortised cost and reversals of
impairment losses on equity securities are shown in equity. Premiums and discounts are recognised in profit or loss over their term – as are
interest and dividend payments – as net interest income in accordance with the effective interest method.
Other financial liabilities (OL)
This category includes all primary financial liabilities that are not held for trading or designated at fair value. They are reported in the statement
of financial position as deposits by banks and amounts due to customers, securitised liabilities, other liabilities and subordinated capital.
They are measured at amortised cost. Premiums and discounts are recognised in profit or loss over their term, as are interest payments,
as net interest income in accordance with the effective interest method.

7.2 Receivables
Receivables are broken down into loans and advances to banks and loans and advances to customers. They include mortgage loans,
public-sector loans, loans secured by real estate liens and other loans – lending business – and receivables from money market business.
Receivables covered by the detailed agreement with the State of Berlin are allocated to public-sector loans due to the guarantee for these
loans by the State of Berlin. They are predominantly measured at amortised cost, thereby taking into account any premiums / discounts.
Any valuation allowances required are reported in the statement of financial position item for allowances for losses on loans and advances.
A small group of receivables are part of the available for sale category and are therefore measured at fair value. The fair value is calculated
by determining the present value of contractually agreed cash flows using a risk-adjusted market interest rate based on the respective
partner’s credit rating. Projected cash flows (e.g. interest or principal payments, realisation of collateral) are used for impaired receivables.
Selected receivables are used in the context of hedge accounting as hedged items in micro fair value hedges. The carrying amounts
of these receivables are adjusted for the book gain or loss attributable to the hedged risk; this is recognised in net income from hedge
accounting.
Premiums and discounts are recognised in net interest income over the term of the related assets in line with the effective interest
method. Deferred interest on receivables and premiums / discounts are reported with the respective receivables under the corresponding line
item of the statement of financial position.
Financial assets voluntarily measured at fair value (fair value option) are reported under financial assets recognised at fair value
through profit or loss and not under receivables.
7.3 Write-downs of receivables
The Group takes account of the risks from recognised loans and advances by recognising specific allowances for impairment losses,
portfolio-based allowances for impairment losses, specific impairment allowances calculated on a portfolio basis and allowances calculated
on a country basis.
Specific allowances for impairment losses
Significant receivables are considered on a case-by-case basis. If there is an indication of impairment (breach of contract, concessions to
borrowers on account of financial difficulties, insolvency, other restructuring measures or financial difficulties on the part of the issuer or
debtor) this is recognised taking the expected default into account. Specific allowances for impairment losses are reversed as soon as
either the value of the receivable is decreased by inflows, additional collateral is pledged, or the value of the collateral or the credit rating
of the borrower shows a fundamental and sustained improvement.
Specific impairment allowances calculated on a portfolio basis
Non-significant receivables with the above indications of impairment are combined into narrowly defined portfolios and measured as groups
of receivables using a standard method.
Portfolio-based allowances for impairment losses
In the case of portfolios of receivables for which no specific allowances for impairment losses have been recognised, portfolio-based
allowances for impairment losses are recognised for general credit risks (e.g. general economic risks). The basis of measurement is the
entire portfolio of receivables, less receivables from borrowers that have already been subject to a specific allowance for impairment losses.
Corresponding probabilities of default, calculated using ratings and scorings, are applied to the basis of measurement.
Financial instruments now measured at amortised cost as a result of reclassification are included in portfolio-based allowances
for impairment losses. The methods applied remain the same following the increase in the portfolios being considered.
Country valuation allowances
Country valuation allowances are recognised to shield against transfer risks. This valuation allowance is recognised for all the bed debts
from all the debtors in a specific country. The basis of measurement is the entire portfolio of receivables, less the portion of receivables that
has already been subject to a specific allowance for impairment losses.
If necessary, allowances for transactions not shown on the face of the statement of financial position (loan commitments, guarantees,
letters of credit, liabilities in relation to bills) are accounted for using a provision for risks from loans and advances or included in the portfolio-based
allowances for impairment losses. Non-collectable receivables are written down directly. Recoveries on loans previously written
down are recognised in profit or loss.
Further information can be found in the Risk Management section.
Consolidated financial statements Notes on accounting policies 139

140
Consolidated financial statements Notes on accounting policies
7.4 Liabilities
Financial liabilities are broken down into deposits by banks, amounts due to customers, securitised liabilities and subordinated capital
and reported accordingly. Some financial liabilities are also recognised under other equity and liabilities. Financial liabilities are reported at
amortised cost. Premiums and discounts are recognised in net interest income over the term of the related assets in line with the effective
interest method. Deferred interest is reported as part of the respective liability. When buying back own bonds, securitised liabilities are
reported net in the statement of financial position. Any gains or losses between the carrying amount and the cost (fair value) on buying
back bonds are reported under net interest income.
Selected financial liabilities are designated in the context of hedge accounting as hedged items in micro fair value hedges. The
carrying amounts of these liabilities are adjusted for the book gain or loss attributable to the hedged risk. This change in value is recognised
in net income from hedge accounting.
With the exception of a partial amount of subordinated capital, financial liabilities voluntarily measured at fair value (fair value option)
are reported under financial liabilities recognised at fair value through profit or loss and not under liabilities.
7.5 Financial instruments recognised at fair value through profit or loss
This statement of financial position item is divided into financial instruments held for trading on the one hand – including financial assets
and liabilities held for trading and non-trading book derivative transactions – and fair value option financial instruments on the other. Financial
instruments in this category that are assets are reported as financial assets recognised at fair value through profit or loss, liability financial
instruments are reported as financial liabilities recognised at fair value through profit or loss.
Derivatives used in hedge accounting are reported separately as asset and liability hedging derivatives.
7.6 Embedded derivatives
Embedded derivatives are derivative financial assets or liabilities that are not independent instruments but are components in structured
financial instruments. Under certain conditions, IAS 39 requires separate recognition of the host contract and the embedded derivative.
The Bank assigns all of these separable structured financial instruments to the fair value option category. Thus, components are not separated
in such cases and instead the entire structured financial instrument is measured at fair value and reported in the statement of financial
position in the appropriate category.
7.7 Hedge accounting
The rules of IAS 39 allow the presentation of economic hedges under restrictive conditions. The Group uses micro fair value hedging and
macro cash flow hedging.

Micro fair value hedge accounting
In micro fair value hedges, the Group hedges the fair value of financial instruments against fluctuations arising from changes in reference
interest rates or currencies. Among other things, this affects the Group’s issuing business and fixed-interest securities. Interest rate swaps,
currency swaps and interest rate-currency swaps are used in these hedges.
Hedging derivatives are reported in the statement of financial position as asset or liability derivative hedging instruments respectively
and measured at fair value. Measurement differences are taken in full to net income from hedge accounting in profit or loss. For loans and
receivables / other liabilities hedged items, the carrying amount in the statement of financial position is adjusted for the change in fair value
resulting from hedged (interest rate) risk (hedge adjustment). This change in value is recognised in net income from hedge accounting. For
available-for-sale hedged items, the hedge adjustment is also reported under net income from hedge accounting while the remainder of the
change in value – the component not due to the hedged risk – is recognised in equity in the revaluation surplus.
As this accounting treatment is dependent on the effectiveness of micro fair value hedges, the Group performs prospective and
retrospective effectiveness tests. The retrospective test uses the dollar offset method on a cumulative basis and regression analysis. The fair
value changes in the hedging instrument (derivative) and the hedged item are compared over all past reporting periods since the inception
of the hedge relationship. In a prospective effectiveness test, fair values are calculated to the end of the term of the hedging instrument and
the hedged item on the basis of market data scenarios (+ 100 bp shift) or a critical term match is carried out.
Macro cash flow hedge accounting
In a macro cash flow hedge, the Group uses interest rate swaps to hedge against cash flow fluctuations due to variable interest rates on
loans, securities and liabilities used in asset / liability management. Cash flows with terms from one month to 20 years were hedged in the
reporting period.
All the interest rate derivatives used and designated for this are reported as asset or liability hedging instruments and carried at
fair value. Cumulative changes in value are recognised in equity in the revaluation surplus for cash flow hedges. If the effectiveness test finds
that hedges are ineffective, this is recognised in net trading income.
The general accounting rules do not change for the hedged items.
The change in fair value of cash flows method is used to test the effectiveness of macro cash flow hedges. In the prospective test, expected
cash flows from the hedging instrument and the hedged item are compared for the corresponding maturity bands. Retrospectively, the
Group checks that effectiveness is within a range of 80 – 125 % using the hedge ratio of actual cash flows from the hedging instrument
and the hedged item.
There were no hedged items in the reporting period and they are not expected to occur in future.
7.8 Financial assets
Consolidated financial statements Notes on accounting policies 141
Financial assets include all bonds and other fixed-income securities, shares and other non-fixed-income securities, investments and investments
in associates (not measured at equity) and investments in unconsolidated subsidiaries that are not held for trading or measured at
fair value. These assets are generally in the available-for-sale category. In addition, financial assets include bonds and asset-backed securities
categorised as loans and receivables that are not traded on an active market as at the end of the reporting period or reclassification date.
Furthermore, bonds and other fixed-interest securities are recognised as financial assets in the held-to-maturity category.
Available-for-sale assets are measured at fair value. The changes in value are recognised in the revaluation surplus in equity until
disposal. If the fair value of equity securities cannot be reliably measured, they are carried at cost. Bonds and asset-backed securities are
measured at amortised cost as long as they are categorised as loans and receivables or held-to-maturity.

142
Consolidated financial statements Notes on accounting policies
All financial instruments received are regularly tested for significant or permanent impairment. In line with IAS 39.61, a significant or prolonged
reduction in the fair value of equity securities is seen as an objective indication of impairment. For debt securities, IAS 39.59 requires
a qualitative and quantitative examination of whether there is a significant or prolonged reduction in fair value. If there is any corresponding
impairment, the amount is recognised in profit or loss in net income from financial assets. For debt securities, the impairment loss is
reversed to amortised cost, also in net income from financial assets. Impairment losses on equity securities cannot be reversed to the
income statement when the reason for impairment ceases to exist; instead they are taken directly to the revaluation surplus in equity and
eliminated in profit or loss in net income from financial assets on disposal. The reversal of impairment losses is generally not permitted
for equity securities measured at cost.
7.9 Securities repurchase and securities lending agreements
Repurchase agreements (repo agreements)
Repo agreements are a combination of regular purchases or regular sales of securities with a simultaneous agreement to forward sale or
repurchase with the same counterparty. The securities sold under repo agreements (regular way sales) continue to be recognised and
measured as securities in the consolidated statement of financial position. The liquidity from the repo agreement is recognised under
deposits by banks or amounts due to customers. Agreed interest payments are recognised as interest expenses.
In reverse repo agreements, the securities received (regular way purchases) are not recognised by the Group. The resulting outflows
of liquidity are recognised as loans and advances to banks or customers. Agreed interest is recognised as interest income.
Securities lending transactions
Securities lending agreements are entered into with banks and with customers. The securities lent by Landesbank Berlin are still reported
under securities, whereas the securities lent to Landesbank Berlin are not recognised in the statement of financial position. Cash collateral
provided for securities lent by Landesbank Berlin is reported under receivables, whereas collateral received for securities lent to Landesbank
Berlin is reported under liabilities. The income and expense resulting from securities lending agreements are taken to profit or loss as net
interest income.
7.10 Financial guarantees
Financial guarantees are agreements whereby the Bank, as the guarantor, is under obligation to make certain payments to compensate the
guaranteed party for losses arising because a certain obligor does not meet its payment obligations as per the original or amended conditions
of a debt instrument on time. Financial guarantees can include bank guarantees, credit guarantees and letters of credit.
The Bank measures financial guarantees at fair value on first-time recognition. The fair value of financial guarantees issued as part of
a transaction conforming to market terms is equal to the premium for granting the guarantee (IAS 39.43 in conjunction with IAS 39.AG 4 (a)).
The net method is used. If payment of the premium to the guarantor is spread over the term of the financial guarantee, it is carried at nil and
the respective premium payment is recognised. Financial guarantees against one-off payments are deferred pro rata over the full term of the
financial guarantee.
The financial guarantee is recognised at the higher of measurement in line with IAS 37 and the value calculated in first-time measurement
amortised under IAS 18 at the end of subsequent reporting periods.

8 Cash
Cash in hand and balances at central banks are reported at nominal amount.
9 Investments carried at equity
Investments in associates and joint ventures carried at equity are reported in this category.
Associates as defined by IAS 28 are investments over which an investor has the power to exert significant influence without there
being joint control. Joint ventures as defined by IAS 31 are contractual agreements whereby two or more parties undertake an economic
activity which is subject to joint control.
31.12.2009 Additions Disposals 31.12.2010
Joint Ventures (IAS 31) – carried at equity 1 0 1 0
Assoziierte Unternehmen (IAS 28) – carried at equity 2 0 0 2
Spezial- und Publikumsfonds – carried at equity 3 3 3 3
Total 6 3 4 5
Investments carried at equity are initially reported at cost and, in subsequent periods, their carrying amount changes in line with the investor’s
share in its net profit or loss for the period. Changes in the equity of the associate or joint venture also result in changes in its carrying
amount in equity. Distributions by the investment company are recognised in equity and reduce the carrying amount of the investment.
Income from transactions with companies carried at equity is eliminated pro rata.
10 Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance held for use in the supply of services or for administrative
purposes. Intangible assets are divided into acquired and internally generated intangible assets. In particular, intangible assets include software,
rights, licenses and goodwill. The straight-line amortisation period for such assets – with the exception of goodwill – is between three
and five years.
Intangible assets are reported at historical cost net of straight-line amortisation and impairment. Internally generated intangible
assets can only be capitalised if the conditions of IAS 38.21 and IAS 38.57 are met.
11 Property, plant and equipment
Consolidated financial statements Notes on accounting policies 143
Property, plant and equipment are reported at historical cost net of straight-line depreciation and impairment.
In accordance with IAS 16.16, in addition to the cost of acquisition, the gross carrying amounts of cost include incidental costs of
acquisition and cost reductions in particular. Subsequent costs are taken into account in line with IAS 16.12 et seq.
The depreciation period is calculated on the basis of the economic life. Any legal or contractual restrictions are also taken into
consideration. Property, plant and equipment are depreciated on a straight-line basis to a residual value of € 1. If there are indications of
impairment in excess of depreciation, impairment tests are carried out in accordance with IAS 36 and any necessary impairment losses are
taken to profit or loss. If the reasons for impairment cease to apply, the impairment is reversed up to the maximum of the amortised cost.

144
Consolidated financial statements Notes on accounting policies
Depreciation period in years
Owner-occupied buildings and other property, plant and equipment are written down on a straight-line basis over the following periods in
line with their type of use:
Type of use Economic life
Residential and commercial properties (< 10 % commercial share) 60 – 80 years
Residential and commercial properties (> 10 % commercial share) 50 – 70 years
Office buildings, office and commercial properties 40 – 60 years
Car parks, underground garages 40 – 50 years
Operating and office equipment 7 – 25 years
Acquired computer systems 3 – 8 years
The economic useful life of finance lease items is based on the term of the lease agreement, taking into account residual values.
Gains and losses on the disposal of property, plant and equipment are reported under other operating income. Impairment and
write-downs are reported under administrative expenses.
12 Impairment of property, plant and equipment and intangible assets including goodwill
Property, plant and equipment and intangible assets, including goodwill, are tested for impairment at the end of every reporting period to
determine whether there are indications of impairment. If such indications exist, the recoverable amount of the asset is calculated in order
to determine the amount of the corresponding impairment loss. The recoverable amount of an asset is the greater of the fair value net of
selling costs and the value in use.
Estimates relating to factors such as cause, date and amount of impairment are also made in calculating the impairment of property,
plant and equipment and intangible assets. The identification of indications of impairment, estimates of future cash flows and the
calculation of the fair values of assets (or groups of assets) entail material estimates that must be made by the management with regard
to identifying and reviewing indications of impairment, expected cash flows, the applicable discount rates, the respective useful lives and
the remaining values.
Impairment is based on a large number of factors, such as changes in current competitive conditions, expectations of growth,
increased cost of capital, changes in the future availability of financing, technological obsolescence, discontinuance of services, current
replacement costs and other changes in circumstances that indicate impairment. The recoverable amount and the fair values are typically
determined using a discounted cash flow method which incorporates reasonable market participant assumptions.
Recognised goodwill is not amortised but checked for impairment. An impairment test is conducted once a year as at the end of
the reporting period and whenever there are indications of impairment.
The Group manages and measures goodwill at the level of its cash-generating units (strategic divisions). Impairment tests examine
whether the respective carrying amount exceeds the recoverable amount (higher of value in use and fair value less selling costs). The value
in use of the cash-generating unit is determined in calculating the recoverable amount. The value in use is calculated using the Group’s
forecasts as approved by management as at the impairment test date (management approach).
If the recoverable amount of an asset is less than its carrying amount, the asset is written down to the recoverable amount. The
impairment loss is recognised immediately in profit or loss; for intangible assets (not including goodwill) and property, plant and equipment,
this is reported under administrative expenses, while for goodwill it is reported under other operating income.
If impairment losses are reversed in subsequent periods, the carrying amount of the asset is adjusted to the new recoverable amount.
This is restricted, however, such that the carrying amount of the asset cannot exceed what its carrying value would have been had no
impairment taken place. The reversal of impairment is taken directly to profit or loss and is reported in other operating income. Goodwill
impairment cannot be reversed.

13 Leases
In accordance with IAS 17, leases are assessed and recognised based on consideration of whether the risks and rewards of ownership
of the leased item are borne by the lessor or by the lessee.
A lease is classified as a finance lease if all the risks and rewards of ownership are substantially transferred to the lessee. All other
leases are classified as operating leases. Leases are classified at their inception.
Group as lessor (operating leases)
If leases are operated by Group companies, economic ownership of the leased item remains with the Group company. The leased items
are reported in the consolidated statement of financial position as property, plant and equipment and under investment property. They are
recognised at cost less depreciation over the useful life or impairment losses. Unless otherwise indicated for individual leases, proceeds
from leases are recognised on a straight-line basis over the term of the lease and are taken to profit or loss under other operating income.
Group as lessee (operating leases)
Economic ownership of assets leased under an operating lease remains with the lessor.
Lease instalments paid for operating leases are reported in full as an expense in profit or loss. The expense is recognised on a
straight-line basis over the term of the contract. As with rental payments, lease instalments are calculated on a regular basis in line with the
pattern of benefits received from the lease agreement and taken to profit or loss under administrative expenses.
Group as lessor (finance leases)
As at the end of the reporting period, there were no finance leases in which the Group is the lessor.
Group as lessee (finance leases)
Assets held under finance leases are recognised as assets of the Group at the lower of fair value and the present value of the minimum
lease payments at the inception of the lease. Both the asset value (leased item) and the associated liability (present value of minimum lease
payments) are reported in its statement of financial position.
The leased item is reported in the statement of financial position under either property, plant and equipment or investment property
and the associated liability is shown under amounts due to customers or deposits by banks.
The lease instalments to be paid by the Group are divided into a repayment portion (which has no impact on the income statement
when paid as it simply reduces the lease liability) and an interest expense portion (taken directly to profit or loss). The lease payments are
divided between interest expense and a reduction of the lease liability such that the remaining liability incurs a constant rate of interest.
Interest expense is taken directly to profit or loss. The repayment portion included in the lease instalments is deducted from lease liabilities.
The leased items reported as assets are depreciated in the same manner as assets acquired by the Group itself. The depreciation
is disclosed in the same manner as depreciation of non-leased property, plant and equipment or investment property.
14 Investment property
Consolidated financial statements Notes on accounting policies 145
In accordance with IAS 40, investment property refers to property that is held to earn rental income or for capital appreciation. It is not
intended to use these properties to render services or for the entity’s own administrative purposes. In order to distinguish investment
property from owner-occupied property, the following characteristics have been defined:
Investment property generates cash flows that are largely independent of other assets held by the enterprise.
Mixed-use properties in which own use accounts for more than 5 % of total space are classified and reported as owner-occupied property,
plant and equipment in accordance with IAS 16.
The Group has no property held for sale in the ordinary course of business (IAS 2).

146
Consolidated financial statements Notes on accounting policies
In line with the cost model, investment property is carried at historical cost and reported in the statement of financial position as a separate
item. It is shown net of straight-line depreciation; it is depreciated to a residual value of € 1. The depreciation period is calculated on the
basis of the economic life. Any agreed legal or contractual restrictions are also taken into consideration. Any impairment in excess of depreciation
is recognised. If the reasons for impairment cease to apply, the impairment is reversed up to the maximum of the amortised cost.
Costs incurred subsequent to initial recognition are capitalised when it is probable that additional future economic benefits will flow
to the entity.
All income and expenses resulting from investment property are recognised under other operating income.
Investment property is depreciated on a straight-line basis over the following periods:
Type of use Economic life
Residential and commercial properties (< 10 % commercial share) 60 – 80 years
Residential and commercial properties (> 10 % commercial share) 50 – 70 years
Office buildings, office and commercial properties 40 – 60 years
Car parks, underground garages 40 – 50 years
The economic useful life of finance lease items is based on the term of the lease agreement, taking into account residual values.
There are no restrictions on the usability or disposal of investment property.
Appraisals by publicly appointed and sworn experts with appropriate professional experience are used if this is necessary to determine
the fair value of investment property. The fair value is regularly determined in calculations of net value. This involves making assumptions as
to land values, property yields, remaining useful lives, long-term rentability of building space and long-term rents. If data are available for
current market transactions for properties with similar locations and features, these are used to determine the fair value.
15 Non-current assets and groups of assets held for sale
Non-current assets and groups of assets held for sale are recognised at the lower of the carrying amount and the fair value less costs of
disposal. The present value of the costs of disposal is used if the disposal is expected to take place after more than twelve months.
Assets and groups of assets held for sale are classified as held for sale if the intention is to dispose of them rather than for them
to continue in use. This condition is satisfied when it is highly likely that a planned disposal will take place and when the non-current asset
or group of assets held for sale is available for immediate disposal in its current condition.
No adjustments or reclassifications are made to prior periods in respect of non-current assets and groups of assets held for sale.
Depreciation of non-current assets and groups of assets held for sale ceases from the date of reclassification. Impairment is only recognised
on these assets if the carrying amount exceeds the fair value less costs to sell. If the fair value less costs to sell later rises again, the
previous impairment is reversed. The reversal is limited to the impairment previously recognised on the assets concerned. The liabilities
assigned to these assets are measured in the amount of the reportable payment obligations.
Income from the reversal of write-downs on long-term assets and disposal groups available for sale are recognised under other
operating income.

16 Provisions
Provisions are recognised when the Group has present obligations that arise from past events, which are expected to result in an outflow
of economic resources that can be reliably estimated. The timing or the amount of the obligation are uncertain. Owing to the uncertainties
associated with this assessment, actual obligations may deviate from the original estimates and thereby from the provision amount. In
addition, significant estimates are involved in the determination of provisions related to taxes and litigation risks.
Provisions are recognised for pensions and similar obligations in line with IAS 19.
Other provisions are only recognised for uncertain obligations to third parties and onerous contracts in accordance with IAS 37 when
utilisation of the provision is likely and the amount of utilisation can be reliably determined.
Provisions with a term of more than one year are discounted using rates of interest prescribed uniformly across the Group and
accrue interest in profit or loss in subsequent periods.
The recognition and measurement of provisions in connection with pending legal disputes are largely associated with appraisals by
the Group. Thus, the assessment of the probability that pending proceedings will be successful or will result in a liability or the quantification
of the possible amount of the payment obligation is based on an appraisal of the respective situation. Provisions resulting from general legal
disputes with other parties are not disclosed as the publication of this information could damage the Group’s standing in respect of other
parties in ongoing litigation (IAS 37.92).
The actuarial measurement of pension provisions is based on the projected unit credit method (PUC) for defined benefit retirement
plans set out in IAS 19, taking into account certain demographic and economic assumptions. Using this method, the portfolio-specific
parameters for measurement are based on the earliest possible retirement age under the Act on the Adjustment of the Standard Age Limit
(RVAGAnpG), to the extent that no other agreements were made in the employment contract, age-dependent fluctuation and probabilities
of death and invalidity according to the 2005G Heubeck mortality tables. In establishing the economic parameters, both the interest rate
and other Company-specific trend assumptions concerning the development of salaries and pensions and other legal bases for calculation
(e.g. income threshold in the German pension scheme), are taken into consideration.
The expected long-term development of the available plan assets is determined in line with the fund structure, also taking into
account historic data.
17 Income taxes
Consolidated financial statements Notes on accounting policies 147
Deferred taxes are recognised for all temporary differences between IFRS valuations and tax values (balance sheet approach). Temporary
differences arise between these differing valuations which mean that income taxes will be either higher or lower in the future. Deferred taxes
on tax losses carried forward and excess deferred tax assets are recognised at the amount at which they can realistically be expected to be
realised within a planning period of five years – in line with minimum taxation. This applies when sufficient future taxable profit is generated;
the Company’s current tax forecast is used to judge this. Deferred tax assets and liabilities are measured at the tax rates that apply at the
end of the reporting period or at future tax rates that have been resolved.
Expenses and income from deferred taxes are reported in profit or loss together with current tax expenses and income as “Income
taxes”. Depending on the accounting treatment of items to which the deferred taxes relate, deferred tax assets and liabilities are recognised
and written down either in profit or loss under income taxes or under the appropriate equity item.
Current tax assets result from advance tax payments and eligible capital gains taxes if they exceed the current tax expense calculated
by the respective company for the relevant assessment year and refund claims in line with past tax assessment notices. Tax provisions
have been recognised for expected tax liabilities in line with the advance payments made and eligible capital gains taxes using the calculated
tax results of the companies and for audit risks.
Current and deferred tax assets and liabilities are each reported separately in the statement of financial position.

148
Consolidated financial statements Notes on accounting policies
18 Subordinated capital
Subordinated capital is capital transferred to the Group that qualifies as a financial obligation on account of the right to restitution of the
respective capital provider and has a temporary liability function.
Subordinated capital consists of participations by dormant partners (Article 10 (4) KWG) and subordinated obligations (Article 10 (5a)
KWG). Subordinated capital is recognised at amortised cost. Premiums and discounts are recognised in profit or loss over their term in line
with the effective interest method and included as part of net interest income in profit or loss. The fair value option has been voluntarily
exercised for a partial amount of € 146 million. Subordinated capital used for hedge accounting purposes is adjusted for the gains or losses
attributable to the hedged risk.
19 Equity
Composition of equity
The equity of Landesbank Berlin Holding AG consists of issued capital (share capital) in the form of bearer shares and various reserves.
Issued capital
The issued capital (share capital) of Landesbank Berlin Holding AG consists of no-par-value bearer shares with a notional value of € 2.56 per
share. The issued capital amounts to € 2,555 million. There are no preferential rights or restrictions on the distribution of dividends at
Landesbank Berlin Holding AG. All issued shares are fully paid up.
Treasury shares
The Group did not hold any treasury shares in the financial year.
Capital reserves
Premiums on the issuance of shares are reported under capital reserves. Capital reserves also include amounts generated on the issuance
of bonds for conversion and option rights for the acquisition of shares.
Retained earnings
Retained earnings consist of the legal reserves and other reserves. In accordance with national law, mandatory reserves are recognised
in the legal reserves; the amounts appropriated to the legal reserves are subject to a prohibition on distribution in the single-entity financial
statements of the Holding. The total amount of retained earnings reported in the statement of financial position consists of € 39 million
(previous year: € 25 million) of legal reserves (German Stock Corporation Act); € – 11 million (previous year: € -33 million) of reserves for
the measurement of pensions; and € 230 million (previous year: € 138 million) of other retained earnings.
Currency translation reserve
The currency translation reserve contains gains and losses on translation arising from capital consolidation. This includes currency translation
differences from the consolidation of subsidiaries and associates.
Revaluation reserve
The revaluation surplus includes the gain or loss on revaluation of available-for-sale securities consisting of interest-bearing and dividendoriented
securities and investments plus individual loans and advances to banks and customers at fair value. Gains and losses are only
recognised in profit or loss when the asset has been sold or written off. This equity items also includes the net gains or losses on revaluation
of macro cash flow hedging instruments in effective hedges.
The revaluation surplus also includes deferred taxes that are reported in equity (e.g. those on available-for-sale securities and cash
flow hedge derivatives).

Minimum capital requirements
The LBB Holding Group’s internal risk cover assets are defined on the basis of IFRS equity plus an appropriate portion of subordinated
capital and amounted to € 4,238 million as at 31 December 2010; regulatory equity amounted to € 4,081 million as at 31 December 2010.
By way of the acquisition of the Holding by S-Erwerbsgesellschaft with its partners Regionalverbandsgesellschaft mbH (RVG,
general partner) and DSGV ö.K. (limited partner) in 2007, LBB is owned by the RVG Group in terms of regulatory requirements.
The Group issues a statement in accordance with the Solvency Ordinance (SolvV) on a regular basis. At the level of RVG, the overall
capital ratio as of the end of the year was 16.89 % with a Tier 1 capital ratio of 15.24 % after adoption of the financial statements. Both
regulatory minimum ratios were maintained at all times at the level of the Group and the individual banks.
Capital management
The Capital Management Committee coordinates Group-wide measures to ensure a long-term, optimised capital structure in line with
internal and external conditions. Detailed information on capital management can be found in the section on overall risk management in
the risk report.
Dividend payment
In 2010, a dividend of € 0.14 per share was distributed to the shareholders. This corresponds to a total distribution amount of € 140 million.
20 Off-balance sheet transactions
Trust activities
Consolidated financial statements Notes on accounting policies 149
Trust activities which involve the holding or placing of assets in the Bank’s name but on behalf of third parties are not recognised under
IFRS as they represent transactions not shown on the face of the statement of financial position. Commission payments for such activities
are included in profit or loss in net commission income.
Contingent liabilities
Contingent liabilities are possible obligations that arise from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Group. In banking business these include
guarantee liabilities and irrevocable loans commitments.
This also includes current obligations that arise from past events but that cannot be recognised in the statement of financial position
as it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or the amount of
the obligation cannot be measured with sufficient reliability.
Commission payments for the above activities are included in profit or loss in net commission income.

150
Consolidated financial statements
Notes to the income statement
21 Net interest income
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Interest income
Interest income from receivables 1,848 2,281 – 19
Interest income from financial assets 554 914 – 39
Similar (interest) income from financial investments 10 12 – 17
Other interest income 1,762 1,479 19
Total interest income 4,174 4,686 – 11
Interest expenses
Interest expenses for liabilities 1,257 1,926 – 35
Interest expenses for subordinated liabilities 72 91 – 21
Similar (interest) expenses from financial assets 0 0 0
Other interest expenses 2,120 1,807 17
Total interest expenses 3,449 3,824 – 10
Net interest income 725 862 – 16
Net fee and commission income includes fee and commission income of € 3,973 million (previous year: € 4,511 million) and expenses of
€ 2,935 million (previous year: € 3,322 million) not resulting from financial instruments designated at fair value through profit or loss. They
also include interest income of € 1,561 million (previous year: € 1,304 million) and interest expenses of € 1,606 million (previous year:
€ 1,305 million) from hedge accounting.
Interest income also includes income from impaired financial instruments of € 58 million (previous year: € 65 million) (unwinding
effects). The unwinding effects result from the adjustment of present values as at the end of the reporting period, assuming no change in
future cash flows. The original effective interest rate of the respective financial instrument is used to determine the present value.
22 Allowance for losses on loans and advances
Risk provisioning in the consolidated income statement is as follows:
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Income from the reversal of write-downs on receivables and
from the reversal of provisions in the lending business 202 146 38
Depreciation and amortisation expense and write-downs of
receivables and additions to provisions in the lending business 307 331 – 7
Total 105 185 – 43
Risk provisioning mainly results from receivables in the loans and receivables category.
Risk provisioning in the lending business is determined on the basis of the structure and quality of lending portfolios and general
economic factors.

23 Net commission income
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Fee and commission income
Securities and issue business 119 114 4
Payment services / account management 107 111 – 4
Lending business 38 33 15
Card business 126 108 17
Other services 17 14 21
Other fee and commission income 14 15 – 7
Total fee and commission income 421 395 7
Fee and commission expense
Securities and issue business 44 41 7
Payment services / account management 12 9 33
Lending business 11 10 10
Card business 61 55 11
Other services 13 11 18
Other fee and commission expense 6 7 – 14
Total fee and commission expense 147 133 11
Net commission income 274 262 5
Net fee and commission income includes fee and commission income of € 265 million (previous year: € 240 million) and expenses of
€ 88 million (previous year: € 72 million) not resulting from financial instruments designated at fair value through profit or loss.
The remaining commission income and expenses essentially relate to other services.
Commission income from trust activities amounts to € 1 million (previous year: € 1 million) and is included in other commission income.
Commission expenses from trust activities were not incurred in 2010 or 2009.
24 Net income from hedge accounting
in € million
Consolidated financial statements Notes to the income statement 151
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Net income from hedged underlyings 121 – 8 > 100
Net income from derivatives used as hedge accounting instruments – 114 – 7 < – 100
Total 7 – 15 > 100
Net income from hedges is a net item consisting of the gains and losses on the remeasurement of hedged items and hedging instruments
in micro fair value hedges if these meet the hedge accounting criteria of IAS 39. In some periods, owing to a non-ideal development of the
effectiveness of the underlying hedges, there can be matching developments in the earnings from hedged items and hedging instruments
although the hedges are still effective at an individual level.
As in the previous year, there was no portion of the change in value of derivatives in macro cash flow hedges resulting from macro
cash flow hedges that can be designated as ineffective.
The Group does not use hedge accounting beyond this.

152
Consolidated financial statements Notes to the income statement
25 Net gain from financial instruments recognised at fair value through profit or loss
Net income from fair value measurement through profit or loss breaks down into:
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Income from financial instruments
classified as trading (held-for-trading) 292 547 – 47
designated at fair value (fair value option) 57 – 69 > 100
Total 349 478 – 27
The results break down into the following categories:
Net income from the trading category (HFT)
Net income from the trading category (held-for-trading) is composed of earnings contributions from securities and trading book derivatives
and non-trading book derivatives. In addition to measurement and disposal effects, it also includes interest income and expenses, commission
income and expenses and dividend income.
Net income from financial instruments designated at fair value (FVO)
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Net income from remeasurement of assets 63 177 – 64
Net income from remeasurement of equity and liabilities – 6 – 246 98
Total 57 – 69 > 100
Measurement and disposal effects are included in net income from financial instruments designated at fair value.
26 Net income from financial assets
Net income from financial investments contains gains / losses on the disposal and remeasurement of financial assets.
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009 1)
Change
in %
Net gain on disposal of financial assets 3 – 25 > 100
Income from the disposal of financial assets 18 8 > 100
Expenses from the disposal of financial assets 15 33 – 55
Net income from the remeasurement of financial assets – 25 – 82 70
Income from reversals of write-downs on financial assets 5 4 25
Expenses from write-downs on financial assets 30 86 – 65
Total – 22 – 107 79
1) Figures for the previous year have been adjusted
€ 7 million (previous year: € – 28 million * ) of net income from financial assets related to available-for-sale financial assets and € – 29 million
(previous year: € – 79 million) related to loans and receivables assets.
Of the expenses from write-downs on financial assets, € 27 million (previous year: € 67 million) related to bonds and other
fixed-interest securities (loans and receivables) and € 3 million (previous year: € 19 million) to bonds and other fixed-interest and some
non-interest-bearing securities (available-for-sale).
* Figure for the previous year has been adjusted

Net income by category
The “net income” is calculated for each category of financial instruments. The net income for the loans and receivables, available-for-sale,
held-to-maturity and other liabilities categories include the earnings effects of measurement on the one hand (write-downs – recognised
as risk provisioning – and impairment and reversals) including the measurement of hedge accounting and earnings effects of disposals on
the other. The results break down as follows:
Net income for the loans and receivables category amounts to € -81 million (previous year: € – 140 million). This includes the share of income
from financial assets relating to loans and receivables instruments, the recognised (or reversed) risk provisioning, measurement effects from
hedged loans and receivables items and a portion of income from receivables sold, which is included in other operating income.
The net income for the available-for-sale category consists of the available-for-sale share of income from financial assets and measurement
effects of hedged available-for-sale items and amounts to € 44 million (previous year: € – 79 million * ). This includes € 7 million
(previous year: € – 29 million * ) which was taken from the revaluation surplus (available-for-sale) and recognised in profit or loss. In addition,
€ 57 million (previous year: € 588 million) was transferred directly to equity in this reserve. Including deferred taxes, the total effect on the
revaluation surplus amounted to € 18 million (see total comprehensive income).
The net income of the other liabilities category includes the earnings effects of buying back own promissory note loans and the
measurement effects of hedged other liabilities transactions and amounts to € 44 million (previous year: € – 83 million).
27 Net income from investments carried at equity
This item consists of income from associates and joint ventures carried at equity.
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Net income from remeasurement 2 2 0
Current income 3 2 50
Reversals of impairment losses on the carrying amount of investments 3 – 18 > 100
Total 8 – 14 > 100
28 Other operating income
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Net income from financial assets, property, plant and equipment and intangible assets 2 3 – 33
Net income from investment property 10 6 67
Net income from promissory note loans 11 – 1 > 100
Non-bank revenue 25 30 – 17
IT income 13 13 0
Deconsolidation effects 18 – 4 > 100
Other tax expenses 1 1 0
Miscellaneous other operating income 6 – 5 > 100
Total 84 41 > 100
Net income from promissory note loans includes net gains on the disposal of loans and receivables promissory note loans and the
repurchase of own promissory note loans.
The “other tax expenses” item includes taxes on assets and transactions.
Other operating income is composed of items that cannot be allocated to any other income statement account.
* Figure for the previous year has been adjusted
Consolidated financial statements Notes to the income statement 153

154
Consolidated financial statements Notes to the income statement
The Group as lessor (operating leases)
Other operating income and expenses includes operating lease income. Future minimum lease payments relate to rental income from land
and buildings.
The gross carrying amount of assets provided under operating leases is € 44 million.
Total future minimum lease payments from non-cancellable operating leases break down as follows:
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Remaining term
less than one year 1 2 – 50
between one and five years 1 2 – 50
Total 2 4 – 50
29 Administrative expense
The Group’s administrative expenses are composed of staff costs, depreciation of property, plant and equipment and amortisation of
intangible assets (not including goodwill) and other administrative expenses. These expenses break down as follows:
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Staff costs 551 537 3
Depreciation of property, plant and equipment and amortisation of intangible assets 55 62 – 11
Other administrative expenses 397 386 3
Total 1,003 985 2
Staff costs
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Wages and salaries 418 402 4
Social security contributions 61 59 3
Expenses for pensions and other benefits 72 76 – 5
Total 551 537 3
Depreciation of property, plant and equipment and amortisation of intangible assets (not including goodwill)
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Depreciation of property, plant and equipment 37 38 – 3
Depreciation 37 38 – 3
Impairment 0 0 0
Impairment Amortisation of intangible assets 18 24 – 25
Depreciation 18 24 – 25
Impairment 0 0 0
Total 55 62 – 11

Other administrative expenses
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Office space costs 62 64 – 3
Operating and office equipment 4 4 0
IT costs 163 158 3
Advertising and marketing 25 26 – 4
Business operating costs 67 63 6
Consulting, audits and contributions 58 55 5
Staff-related operating costs 16 14 14
Miscellaneous 2 2 0
Total 397 386 3
The fees paid to auditors in the 2010 financial year are composed as follows:
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
for audits 5 5 0
for other assurance services 2 2 0
Total 7 7 0
Fees for auditors as at 31 December 2010 are reported in accordance with Article 314 (1) no. 9 HGB. The disclosures include the auditor
fees for all the companies included in the consolidated financial statements in accordance with Article 285 no. 17 HGB. € 0.2 million of the
amounts deferred for the financial statements as at 31 December 2009 were reversed to profit or loss in the reporting year. The presentation
as at 31 December 2010 does not include VAT (IDW RS HFA 36).
The Group as lessee (operating leases)
Operating leases mainly relate to branch offices and IT systems. Part of the lease payments for branch offices are made depending on the
general rental index and part of those for IT systems are made depending on utilisation. There are also extension options for these rental
agreements.
Future minimum lease payments from non-cancellable operating leases break down as follows:
in € million
Consolidated financial statements Notes to the income statement 155
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Remaining term
less than one year 26 27 – 4
between one and five years 44 51 – 14
more than five years 13 17 – 24
Total 83 95 – 13
Total future minimum payments from subleases amount to € 1 million.
Minimum lease payments in the financial year amounted to € 26 million (previous year: € 27 million), and contingent rent amounted
to € 1 million (previous year: € 1 million). No payments were incurred for subleases in 2010 or the previous year.

156
Consolidated financial statements Notes to the income statement
30 Restructuring expenditure and income (net)
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Change
in %
Restructuring income 0 1 – 100
Restructuring expenditure 0 9 – 100
Total 0 – 8 100
The restructuring process performed for the former Bankgesellschaft Berlin AG as part of the EU financial assistance proceedings has been
concluded. The downstream measures still to be implemented were immaterial in the financial year. Thus, restructuring income and
expenses have been reclassified to other items of the income statement.
31 Income tax expense
The Landesbank Berlin Holding Group consists of one group of integrated companies and companies that do not belong to this tax group.
Our foreign subsidiaries and branches are taxed in the respective country in which they are based. Dividends flowing to Landesbank
Berlin AG are essentially tax-free in Germany. The profits from foreign branches are fully tax-free in Germany.
Income tax expenses break down as follows:
in € million
1.1. – 31.12.
2010
1.1. – 31.12.
2009 1)
Change
in %
Current taxes 12 66 – 82
Deferred taxes 40 – 2 > 100
Total 52 64 – 19
1) Figures for the previous year have been adjusted
The following statement of reconciliation shows the differences between the expected and reported tax expense in the Group:
in € million 31.12.2010 31.12.2009 1)
Profit before income taxes in accordance with IFRS 317 329
Consolidated income tax rate (%) 30.175 % 30.175 %
Expected income tax expense 96 99
1. Tax-free income – 22 – 27
2. Non-deductible expenses 10 15
3. Differences in the basis of calculation of trade tax 4 5
4. Changes in tax rates 1 0
5. (Non-)recognition and measurement of deferred tax assets – 40 – 46
6. Non-deductible income or withholding tax 1 2
7. Prior-period effects 1 16
8. Other 1 0
Reported income tax expense/tax income (–) 52 64
Effective tax rate 16.4 % 19.4 %
1) Figures for the previous year have been adjusted
The consolidated rate of income tax selected as the basis for the statement of reconciliation lies at 30.175 % and is composed of the
corporation tax rate of 15 % applicable in Germany, plus the solidarity surcharge of 5.5 % and the trade tax rate of 14.35 %. As the Group
companies are primarily based in Berlin, trade tax was calculated on the basis of the Berlin assessment rate of 410 %.
However, deferred taxes were calculated on the basis of the income tax rates applicable to the respective companies.
The effects of tax-free income primarily result from income that is tax-free income under Article 8b (1) and (2) KStG. The difference as
against the previous year is mainly due to the reversal of provisions for incidental corporation tax expenses recognised in 2009.

As in the previous year, the additional charges for non-deductible expenses primarily include the non-deductible expenses in accordance
with Articles 8a and 8b (2) and (3) KStG and guarantee commission to be paid to the State of Berlin on the basis of the risk shielding
assumed under the detailed agreement.
The foreign tax rates are between 12 % and 29 %. For one Group company in Germany the target tax rate is higher than the Group
tax rate of 30.175% on account of higher trade tax assessment rates. The tax effect due to the differences from the consolidated tax rate is
shown in the statement of reconciliation under changes in tax rates. This item also includes the effects of tax rate changes in the UK and
Luxembourg.
The item “(Non-) recognition and measurement of deferred tax assets” primarily relates to tax effects in connection with the additional
capitalisation of deferred taxes on unused loss carryforwards. New deferred tax assets on loss carryforwards were recognised at
Landesbank Berlin Holding AG and the London branch of Landesbank Berlin AG in the amount of the utilised deferred tax assets on loss
carryforwards (€ 31 million). This item also includes the effects of the adjusted medium-term planning including the effects resulting from
the profit transfer agreement between Landesbank Berlin AG and Berlin Hyp that was concluded and entered into effect in 2010 (€ 54 million).
Total deferred taxes of € 332 million (previous year: € 329 million) were recognised for corporation tax loss carryforwards (including
foreign loss carryforwards) of € 1,085 million (previous year: € 1,243 million) and for trade tax loss carryforwards of € 1,026 million
(previous year: € 791 million). Total deferred tax assets of € 39 million (previous year: € 57 million) were reversed as a result of the utilisation
of loss carryforwards. This related to Landesbank Berlin Holding AG, the London branch of Landesbank Berlin AG and LBB International
S.A. Luxembourg. The conclusion of the profit transfer agreement with Berlin Hyp led to the reversal of the deferred tax assets recognised
at this company on corporation tax loss carryforwards. At the same time, higher deferred tax assets were recognised on both corporation
and trade tax loss carryforwards at the parent company Landesbank Berlin Holding.
No deferred taxes were recognised for corporation tax loss carryforwards (including foreign losses) of € 1,982 million (previous year:
€ 1,922 million) and for trade tax loss carryforwards of € 1,954 million (previous year: € 2,228 million). There are no limits on the use of
losses carried forward.
The recognisability and value of deferred tax assets on loss carryforwards and deductible temporary differences are examined on
the basis of a forecast of future taxable income. This forecast takes into account regulations on tax reductions and additions not shown on
the face of the statement of financial position (including Article 8b KStG, the taxation of establishment results alone in the countries of source
and Article 8 GewStG in particular). The deferred tax assets recognised in the Holding Group are covered by future positive tax results.
The revaluation reserve for deferred taxes amounted to € 52 million (previous year: € 81 million *). € 9 million of this (previous year:
€ 40 million * ) related to the available-for-sale reserve and € 43 million (previous year: € 41 million) to the reserve for cash flow hedges.
As in the previous year, the temporary differences in accordance with IAS 12.81 (f) for which no deferred tax liabilities were recognised
amount to less than € 1 million.
The corporation tax credit in line with Article 37 (2) KStG amounted to € 2.2 million (previous year: € 2.6 million). The remaining
amount will be paid out in seven equal annual instalments over the period until 2017.
32 Earnings per share
1.1. – 31.12.
2010
1.1. – 31.12.
2009 1)
Change
in %
Consolidated net profit for the period of the shareholders
of the parent company (€ million) 267 250 7
Average number of ordinary shares outstanding 999,327,870 999,327,870 0
Earnings per share (€) 2) 0.27 0.25 7
1) Figures for the previous year have been adjusted
2) Diluted = basic earnings
There were no conversion or option rights outstanding in the financial year or as at 31 December 2010. The diluted earnings per share are
therefore the same as the basic earnings per share.
* Figure for the previous year has been adjusted
Consolidated financial statements Notes to the income statement 157

158
Consolidated financial statements
Notes to the statement of financial position
33 Cash
The cash item breaks down as follows:
in € million
31.12.2010 31.12.2009 Change
in %
Cash in hand 367 426 – 14
Central bank balances 463 916 – 49
Total 830 1,342 – 38
All assets are available at short notice.
€ 453 million of central bank balances relates to the balance at Deutsche Bundesbank (previous year: € 892 million).
As at the end of the reporting period, the required minimum reserve amounted to € 561 million (previous year: € 621 million).

34 Loans and advances to banks
Loans and advances to banks are as follows:
in € million
Consolidated financial statements Notes to the statement of financial position 159
31.12.2010 31.12.2009 Change
in %
Loans and receivables
Term and demand deposits 12,317 16,996 – 28
payable on demand 2,363 2,419 – 2
up to three months 5,030 8,137 – 38
between three months and one year 4,904 6,415 – 24
between one and five years 20 25 – 20
Loans 1,130 1,239 – 9
up to three months 135 149 – 9
between three months and one year 383 444 – 14
between one and five years 523 580 – 10
more than five years 89 66 35
Promissory note loans 1,039 1,326 – 22
up to three months 22 22 0
between three months and one year 136 287 – 53
between one and five years 698 863 – 19
more than five years 183 154 19
Public-sector loans 1,891 2,363 – 20
up to three months 95 347 – 73
between three months and one year 420 291 44
between one and five years 770 1,059 – 27
more than five years 606 666 – 9
Other loans and advances 373 421 – 11
payable on demand 109 169 – 36
up to three months 16 1 > 100
between three months and one year 3 3 0
between one and five years 235 232 1
more than five years 10 16 – 38
Total loans and receivables 16,750 22,345 – 25
Available-for-sale
Public-sector loans 0 116 – 100
up to three months 0 93 – 100
between three months and one year 0 23 – 100
between one and five years 0 0 0
Other loans and advances 0 0 0
Total available-for-sale 0 116 – 100
Total 16,750 22,461 – 25
These include € 16,219 million (previous year: € 22,026 million) of loans and advances to banks in Germany and € 531 million (previous
year: € 435 million) of loans and advances to banks outside Germany. Loans and advances are classed as in Germany or outside Germany
on the basis of the registered office of the subsidiary.
As at 31 December 2010, there were allowances for impairment losses on loans and advances to banks in the amount of
€ 42 million (previous year: € 36 million).

160
Consolidated financial statements Notes to the statement of financial position
35 Loans and advances to customers
Loans and advances to customers are as follows:
in € million
31.12.2010 31.12.2009 Change
in %
Loans and receivables
Term and demand deposits 2,360 2,279 4
payable on demand 1,322 1,349 – 2
up to three months 927 860 8
between three months and one year 111 70 59
Loans 10,723 10,804 – 1
up to three months 670 615 9
between three months and one year 935 1,159 – 19
between one and five years 4,201 3,563 18
more than five years 4,917 5,467 – 10
Promissory note loans 1,460 893 63
up to three months 322 242 33
between three months and one year 368 205 80
between one and five years 572 435 31
more than five years 198 11 > 100
Mortgage bank mortgage loans 16,651 15,942 4
up to three months 2,827 2,616 8
between three months and one year 1,341 1,797 – 25
between one and five years 8,718 7,952 10
more than five years 3,765 3,577 5
Loans secured by real estate liens 1,835 1,687 9
up to three months 57 31 84
between three months and one year 63 86 – 27
between one and five years 474 426 11
more than five years 1,241 1,144 8
Public-sector loans 1) 11,781 14,944 – 21
up to three months 1,326 1,616 – 18
between three months and one year 1,006 2,476 – 59
between one and five years 3,949 4,430 – 11
more than five years 5,500 6,422 – 14
Other loans and advances 1,150 1,094 5
payable on demand 679 674 1
up to three months 46 62 – 26
between three months and one year 149 24 > 100
between one and five years 244 280 – 13
more than five years 32 54 – 41
Total loans and receivables 45,960 47,643 – 4
Available-for-sale
Public-sector loans 508 949 – 46
up to three months 23 159 – 86
between three months and one year 36 283 – 87
between one and five years 303 353 – 14
more than five years 146 154 – 5
Other loans and advances 0 0 0
Total available-for-sale 508 949 – 46
Total 46,468 48,592 – 4
1) The items “Mortgage bank public-sector loans” and “Public-sector loans of other banks” have been combined.
These include € 45,536 million (previous year: € 47,741 million) of loans and advances to customers in Germany and € 932 million
(previous year: € 851 million) of loans and advances to customers outside Germany. Loans and advances are classed as in Germany or
outside Germany on the basis of the registered office of the subsidiary.
As at 31 December 2010, there were allowances for impairment losses on loans and advances to customers in the amount of
€ 1,016 million (previous year: € 1,080 million).

Group as lessor (finance leases)
There are currently no loans and advances to customers arising from leases in which the Group is the lessor (finance leases).
36 Allowance for losses on loans and advances
Risk provisioning was recognised for (mainly in the loans and receivables category):
in € million
31.12.2010 31.12.2009 Change
in %
Loans and advances to banks – 42 – 36 – 17
Loans and advances to customers – 1,016 – 1,080 6
Total – 1,058 – 1,116 5
in € million
Consolidated financial statements Notes to the statement of financial position 161
31.12.2010 31.12.2009 Change
in %
Risk provisioning – 1,058 – 1,116 5
Plus provisions – 13 – 18 28
Total – 1,071 – 1,134 6
Existing loans are defined as loans acquired by the LBB as part of the European Monetary Union. The necessary risk provisioning for these
loans was calculated for the opening statement of financial position as at 1 July 1990 and assigned as an equalisation claim. LBB still
manages these loans. As risk provisioning is not recognised in the Bank’s own income statement and is instead deducted from equalisation
claims, receipts on loans, for which impairment allowances exist, do not accrue to LBB but to the German government (Currency Conversion
Equalisation Fund) and must be transferred accordingly.

162
Consolidated financial statements Notes to the statement of financial position
In the financial year, risk provisioning reported as assets and provisions developed as follows:
Loans and advances
to banks
Specific allowances
for impairment losses
Loans and advances
to customers
Specific impairment
allowances calculated
on a portfolio basis
Portfolio-based
allowances for
impairment losses
in € million 2010 2009 2010 2009 2010 2009 2010 2009
As at 1.1.
prior to change in the scope of consolidation 22 8 706 864 203 172 135 140
Change in scope of consolidation 4
As at 1.1. 22 8 706 868 203 172 135 140
Additions 11 20 215 222 32 43 8
Disposals
Utilisation 2 116 265 6 5
Reversals 2 92 77 10 3 25
Unwinding 1 52 61 5 4
Changes in exchange rates/reclassifications 6 – 6 10 19 – 13
As at 31.12. 34 22 671 706 214 203 110 135
As at 31.12.
by type of receivable:
Mortgage bank mortgage loans
(loans and receivables) 300 262
Loans secured by real estate liens
(loans and receivables)
Mortgage bank public-sector loans
(loans and receivables)
Public-sector loans of other banks
(loans and receivables)
33 56
Other receivables (loans and receivables)
Mortgage bank public-sector loans
(available-for-sale)
Other receivables (available-for-sale)
34 22 338 388
1) including reversals of impairment losses of € 48 million (previous year: € 34 million).

Existing loans
Provisions for
lending business
Consolidated financial statements Notes to the statement of financial position 163
Country risk
Total
Of which recognised in profit
or loss
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
39 49 18 24 11 12 1,134 1,269
0 4
39 49 18 24 11 12 1,134 1,273
1 4 1 3 260 300 260 300
18 10 142 280
6 10 4 4 139 94 139 94
58 65 58 65
16 0
21 39 13 18 8 11 1,071 1,134 63 141
Direct write-downs 47 31
Recoveries on loans previously written off 1) 63 52
Total
of which
Risk provisioning recognised
47 120
in profit or loss 105 185
Interest income recognised
in profit or loss (unwinding)
58 65

164
Consolidated financial statements Notes to the statement of financial position
37 Positive fair value of derivative hedging instruments
Hedging instruments that are assets to which hedge accounting in line with IAS 39 was applied break down as follows:
in € million
31.12.2010 31.12.2009 Change
in %
Positive fair values of derivatives in micro fair value hedges 878 865 2
Positive fair values of derivatives in macro cash flow hedges 304 118 > 100
Total 1,182 983 20
€ 1,142 million of derivative hedging instruments that are assets are non-current.
38 Financial assets recognised at fair value through profit or loss
This item includes trading assets and investment book derivatives (held-for-trading) and financial instruments designated at fair value.
in € million
31.12.2010 31.12.2009 Change
in %
Assets held for trading 11,672 12,887 – 9
Financial instruments designated at fair value (fair value option) 5,526 4,699 18
Total 17,198 17,586 – 2
Assets held for trading:
in € million
31.12.2010 31.12.2009 Change
in %
Bonds and other fixed-income securities 531 812 – 35
Shares and other non-fixed-income securities 642 700 – 8
Positive fair value of trading book derivative financial instruments 7,572 8,155 – 7
Positive fair value of investment book derivative financial instruments 2,927 3,220 – 9
Total 11,672 12,887 – 9
Breakdown of assets held for trading by remaining maturity:
up to three months
between
three months and
one year
between
one and five years
more than
five years
in € million 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Bonds and other fixed-income securities 12 48 133 114 282 485 104 165 531 812
Shares and other non-fixed-income
securities 0 0 0 0 1 1 641 699 642 700
Positive fair value of trading book
derivative financial instruments 342 486 595 977 3,152 3,696 3,483 2,996 7,572 8,155
Positive fair value of investment book
derivative financial instruments 70 106 72 293 1,657 1,546 1,128 1,275 2,927 3,220
Total 424 640 800 1,384 5,092 5,728 5,356 5,135 11,672 12,887
Total

Financial instruments designated at fair value:
in € million
31.12.2010 31.12.2009 Change
in %
Loans and advances to customers 47 52 – 10
Financial assets 5,479 4,647 18
Total 5,526 4,699 18
As at 31 December 2010, the maximum default risk of loans and advances to customers was € 47 million (previous year: € 52 million);
there were no credit derivatives or similar instruments to hedge this risk as at the end of the reporting period.
Breakdown of fair value option financial assets by contractual remaining maturity:
up to three months
between
three months and
one year
between
one and five years
more than
five years
in € million 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Loans and advances to customers 0 0 0 0 0 0 47 52 47 52
Financial assets 121 49 545 116 3,464 2,612 1,349 1,870 5,479 4,647
Total 121 49 545 116 3,464 2,612 1,396 1,922 5,526 4,699
The change in the fair values of the above items due to a change in the default risk (credit spread) for 2010 amounts to € 44 million
(previous year: € – 9 million).
The cumulative changes in value amounted to € – 53 million (previous year: € – 165 million).
In calculating the above amounts, receivables and financial assets were initially measured at the respective current credit spread at the
end of the reporting period and then at the respective credit spread for the end of the prior year reporting period. The difference between
these two measurements is the change in fair value due to the change in credit spread.
39 Financial assets
Financial assets break down as follows:
in € million
Consolidated financial statements Notes to the statement of financial position 165
31.12.2010 31.12.2009 Change
in %
Loans and receivables 24,410 31,797 – 23
Bonds and other fixed-income securities 24,398 31,786 – 23
Shares and other non-fixed-income securities 12 11 9
Available-for-sale 18,939 15,229 24
Bonds and other fixed-income securities 18,721 14,997 25
Shares and other non-fixed-income securities 118 129 – 9
Investments 99 100 – 1
Affiliated companies 1 3 – 67
Held-to-maturity 1,664 1,661 0
Bonds and other fixed-income securities 1,664 1,661 0
Total 45,013 48,687 – 8
Total

166
Consolidated financial statements Notes to the statement of financial position
They break down by contractual remaining term as follows:
up to three months
between
three months and
one year
between
one and five years
more than
five years
in € million 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Loans and receivables
Bonds and other
fixed-income securities 1,691 2,522 3,887 5,347 14,280 17,460 4,540 6,457 24,398 31,786
Shares and other
non-fixed-income securities 1 1 11 0 0 10 0 0 12 11
Available-for-sale
Bonds and other
fixed-income securities 946 450 2,462 2,499 11,849 9,692 3,464 2,356 18,721 14,997
Shares and other
non-fixed-income securities 0 0 0 0 0 0 118 129 118 129
Investments 0 0 0 0 0 0 99 100 99 100
Affiliated companies 0 0 0 0 0 0 1 3 1 3
Held-to-maturity
Bonds and other
fixed-income securities 0 0 0 0 1,127 1,092 537 569 1,664 1,661
Total 2,638 2,973 6,360 7,846 27,256 28,254 8,759 9,614 45,013 48,687
In the financial year, investments and unconsolidated affiliated companies developed as follows:
Total
Investments Affiliated companies
in € million 2010 2009 2010 2009
Carrying amount at 1.1. 100 102 3 2
Additions 1 1 1 1
Disposals 1 1 0 0
Reclassification 0 0 – 2 0
Write-downs 1 2 1 0
Carrying amount at 31.12. 99 100 1 3
The disposals at affiliated companies do not include any effects from changes in the scope of consolidation.
Associated companies and joint ventures
Investments include 15 (previous year: 16) associated companies and joint ventures of subordinate importance not carried at equity.
Measurement is at cost in line with IAS 39.
Companies not classified as associated entities despite a share of voting rights of more than 20 % due to immateriality and
companies classified as associated entities despite a share of voting rights of less than 20 % due to a material influence in the form of
representation on governing bodies are indicated in the list of investment holdings.

Summary of financial information on associated companies and joint ventures not carried at equity:
in € million
31.12.2010 31.12.2009 Change
in %
Total assets 569 504 13
Total liabilities 549 491 12
Revenue 339 291 16
Net profit for the year 8 3 > 100
40 Investments carried at equity
A total of two (previous year: two) associated companies, zero (previous year: one) joint ventures and three (previous year: three) funds
are carried at equity and reported separately in the income statement and the statement of financial position.
Companies not classified as associated entities despite a share of voting rights of more than 20 % due to immateriality and
companies classified as associated entities despite a share of voting rights of less than 20 % due to a material influence in the form of
representation on governing bodies are indicated in the list of investment holdings.
Investments carried at equity break down as follows:
in € million
31.12.2010 31.12.2009 Change
in %
Investments in banks 60 60 0
Investments in other companies 30 46 – 35
Total 90 106 – 15
The following table provides a summary of financial information on associates, joint ventures and funds carried at equity:
in € million
31.12.2010 31.12.2009 Change
in %
Total assets 7,963 8,042 – 1
Total liabilities 7,458 7,439 0
Revenue 406 410 – 1
Net profit for the year 26 29 – 10
41 Intangible assets
in € million
Consolidated financial statements Notes to the statement of financial position 167
31.12.2010 31.12.2009 Change
in %
Goodwill 591 591 0
Other internally generated intangible assets 12 5 > 100
Other acquired intangible assets 78 58 34
Total 681 654 4
Capitalised development costs amounted to € 8 million (previous year: € 3 million). Non-capitalisable research expenses for internally
generated software amount to € 8 million (previous year: € 5 million).

168
Consolidated financial statements Notes to the statement of financial position
In the financial year, intangible assets developed as follows:
Goodwill Other internally generated
intangible assets
Other acquired
intangible assets
in € million 2010 2009 2010 2009 2010 2009 2010 2009
Carrying amount at 1.1. 591 592 5 4 58 54 654 650
Additions 0 0 8 3 37 26 45 29
Additions from business
combinations 0 0 0 0 0 0 0 0
Disposals 0 0 0 0 0 0 0 0
Reclassification 1) 0 – 1 0 0 0 0 0 – 1
Write-downs 0 0 1 2 17 22 18 24
Depreciation 0 0 0 0 0 0 0 0
Carrying amount at 31.12. 591 591 12 5 78 58 681 654
1) Adjustment in the previous year due to rounding
For both the year under review and the previous year, the gross carrying amount of goodwill was the same as the respective carrying
amount. There was no amortisation of goodwill.
Other intangible assets include capitalised computer software, particularly for system adjustments in the Group. The gross carrying
amount of other intangible assets is € 334 million (previous year: € 290 million). Cumulative amortisation amounted to € 227 million at the
beginning of the period and € 245 million at the end of the period.
The Group’s capitalised goodwill is assigned to the following cash-generating units (strategic divisions):
Goodwill Cash-generating units Total
in € million
Retail Banking
Regional
Corporate
Banking
Real Estate
Financing
Capital Markets
LBB Investment GmbH 0 0 0 23 23
Landesbank Berlin AG 377 70 100 0 547
netbank AG 21 0 0 0 21
Total 398 70 100 23 591
The allocation shown above has not changed as against the previous year.
The value in use was derived on the basis of discounted cash flows resulting from the continued use of the cash-generating units.
The following assumptions were made to derive values using the dividend discount model:
Cash flows were planned on the basis of current earnings and five-year medium-term planning.
A growth rate based on the long-term development of the consumer price index in Germany was used for cash flows after the end of
the planning period.
For the measurement of each strategic division it was assumed that they retain (or distribute) their earnings in the amount necessary
(or possible) to achieve the economic capital per segment intended in medium-term planning.
Different discounting rates were used to determine the value in use of each division. These vary owing to the use of peer groups – and
therefore different beta factors – specific to each division.
Total

The main measurement parameters are estimates by the management regarding the future developments of the Group’s divisions and its
overall economic environment in light of the Group’s performance up to the measurement date.
Both the discount rate and the long-term growth rate were subjected to a sensitivity test. Even if the capitalisation rate were to
increase by 200-basis points at the same time as a 100-basis point drop in the growth rate there would be no write-down requirements.
42 Property, plant and equipment
in € million
31.12.2010 31.12.2009 Change
in %
Land and buildings 428 436 – 2
Operating and office equipment 122 133 – 8
Total 550 569 – 3
Property, plant and equipment with a net carrying amount of € 309 million (previous year: € 319 million) is used in the context of finance
leases.
The development of property, plant and equipment as against the previous year is as follows:
Consolidated financial statements Notes to the statement of financial position 169
Land and buildings Operating and office equipment Total
in € million 2010 2009 2010 2009 2010 2009
Carrying amount at 1.1. 436 443 133 135 569 578
Additions 7 1 15 25 22 26
Disposals 0 0 1 1 1 1
Reclassification – 3 3 0 0 – 3 3
Write-downs 12 12 25 26 37 38
Depreciation 0 0 0 0 0 0
Reversals of impairment losses 0 0 0 0 0 0
Effects of changes in exchange rates 0 1 0 0 0 1
Carrying amount at 31.12. 428 436 122 133 550 569
The gross carrying amount of owner-occupied land and buildings is € 619 million (previous year: € 615 million). Cumulative depreciation
amounted to € 179 million at the beginning of the period and € 191 million at the end of the period.
The gross carrying amount of operating and office equipment is € 361 million (previous year: € 359 million). Cumulative depreciation
amounted to € 226 million at the beginning of the period and € 239 million at the end of the period.

170
Consolidated financial statements Notes to the statement of financial position
43 Investment property
This item relates to land and buildings used by third parties in line with IAS 40.
in € million
31.12.2010 31.12.2009 Change
in %
Undeveloped land 0 1 – 100
Developed land and buildings 59 85 – 31
Total 59 86 – 31
Investment property with a net carrying amount of € 15 million (previous year: € 16 million) is used in the context of finance leases.
Investment property developed as follows:
Investment Properties
in € million 2010 2009
Carrying amount at 1.1. 86 65
Additions 0 15
Disposals 25 1
Reclassification 0 10
Write-downs 2 2
Depreciation 0 2
Reversals of impairment losses 0 1
Carrying amount at 31.12. 59 86
The additions in the previous relate to the reclassification of two properties originally held as available for sale and the repurchase of a
property already sold.
The gross carrying amount of investment property is € 164 million (previous year: € 201 million). Cumulative depreciation amounted
to € 115 million at the beginning of the period and € 105 million at the end of the period.
The fair value of properties carried as investment property is € 62 million (previous year: € 86 million).
44 Income tax assets
Income tax assets break down as follows:
in € million
31.12.2010 31.12.2009 Change
in %
Current taxes 55 34 62
Deferred taxes 720 795 – 9
Total 775 829 – 7
€ 29 million of income tax assets are non-current (previous year: € 24 million).

Deferred tax assets reflect the potential income tax benefits of timing differences between the carrying amounts of assets and liabilities
in the IFRS consolidated statement of financial position and the tax base in accordance with local tax laws for Group companies. In
addition, deferred tax assets are recognised on tax loss carryforwards if it is sufficiently likely that they will be utilised. Deferred tax assets
were recognised in connection with the following items (before netting):
in € million
31.12.2010 31.12.2009 Change
in %
Loans and advances to banks and customers less risk provisioning 295 385 – 23
Financial assets recognised at fair value 0 0 0
Financial assets 112 0 x
Property, plant and equipment and intangible assets 3 5 – 40
Other assets 34 2 > 100
Deposits by banks and amounts due to customers 64 9 > 100
Securitised debt 80 99 – 19
Negative fair value of derivative hedging instruments 573 455 26
Financial liabilities held at fair value 559 3,193 – 82
Provisions 114 132 – 14
Subordinated capital 30 31 – 3
Other liabilities 45 73 – 38
Loss carryforwards 332 329 1
Subtotal 2,241 4,713 – 52
Netted against deferred tax liabilities – 1,521 – 3,918 61
Total 720 795 – 9
For the purposes of presentation in the statement of financial position, deferred tax assets and liabilities were netted at the level of the
individual company taking into account the operations in Income Tax Treaty States.
45 Other assets
in € million
31.12.2010 31.12.2009 Change
in %
Receivables from collateral provided 2,842 2,904 – 2
Trade receivables 46 60 – 23
Prepaid expenses 16 18 – 11
Other tax receivables (not including income tax assets) 1 3 – 67
Miscellaneous 22 58 – 62
Total 2,927 3,043 – 4
All reported assets are available at short notice.
46 Non-current assets and groups of assets held for sale
in € million
Consolidated financial statements Notes to the statement of financial position 171
31.12.2010 31.12.2009 Change
in %
Land and buildings used by third parties 0 0 0
Financial assets 12 13 – 8
Groups of assets held for sale 0 0 0
Total 12 13 – 8

172
Consolidated financial statements Notes to the statement of financial position
The assets and disposal groups classified as held for sale are being sold as part of the Bank’s long-term strategy of focusing on its core
business areas. The sale or transfer of ownership of the respective non-current assets is scheduled to take place in 2011.
There were no impairment requirements on assets held for sale.
Three items of land and buildings used by third parties were classified as available for sale in 2010 and sold in the course of the year.
No further properties were classified as available for sale in 2010 beyond this.
Financial assets relate to four investments, one of which was already reported as available for sale in 2009. The negotiations are
still ongoing due to unforeseeable circumstances. These assets are assigned to the “Retail Banking” and “Other” segments.
A further investment that was classified as available for sale as at 31 December 2009 was sold in the course of 2010 and had
been assigned to “Retail Banking” prior to its disposal.
47 Deposits by banks
Deposits by banks are as follows:
in € million
31.12.2010 31.12.2009 Change
in %
Term and demand deposits 29,705 37,786 – 21
payable on demand 929 1,303 – 29
up to three months 27,284 24,573 11
between three months and one year 1,472 11,887 – 88
between one and five years 20 23 – 13
more than five years 0 0 0
Issued registered bonds and registered mortgage bonds 881 914 – 4
up to three months 128 57 > 100
between three months and one year 47 325 – 86
between one and five years 387 416 – 7
more than five years 319 116 > 100
Promissory note loans issued 989 1,111 – 11
up to three months 138 70 97
between three months and one year 89 135 – 34
between one and five years 587 529 11
more than five years 175 377 – 54
Other liabilities 1,265 1,559 – 19
payable on demand 89 359 – 75
up to three months 30 62 – 52
between three months and one year 106 34 > 100
between one and five years 627 696 – 10
more than five years 413 408 1
Total 32,840 41,370 – 21
These include € 31,952 million (previous year: € 37,963 million) of deposits by banks in Germany and € 888 million (previous year:
€ 3,407 million) of deposits by banks outside Germany. Liabilities are classed as in Germany or outside Germany on the basis of the
registered office of the subsidiary.
This item also includes deferred interest of € 73 million (previous year: € 114 million).

48 Amounts due to customers
Amounts due to customers are as follows:
in € million
Consolidated financial statements Notes to the statement of financial position 173
31.12.2010 31.12.2009 Change
in %
Term and demand deposits 18,880 17,303 9
payable on demand 12,764 11,816 8
up to three months 5,668 4,256 33
between three months and one year 438 1,220 – 64
between one and five years 10 11 – 9
more than five years 0 0 0
Savings deposits 6,059 6,164 – 2
up to three months 4,614 5,276 – 13
between three months and one year 1,414 847 67
between one and five years 27 37 – 27
more than five years 4 4 0
Issued registered bonds and registered mortgage bonds 5,644 5,481 3
up to three months 164 150 9
between three months and one year 163 407 – 60
between one and five years 1,168 1,250 – 7
more than five years 4,149 3,674 13
Promissory note loans issued 4,225 4,730 – 11
up to three months 164 260 – 37
between three months and one year 331 406 – 18
between one and five years 2,273 1,686 35
more than five years 1,457 2,378 – 39
Other liabilities 1,284 1,451 – 12
payable on demand 657 749 – 12
up to three months 3 29 – 90
between three months and one year 7 7 0
between one and five years 58 92 – 37
more than five years 559 574 – 3
Total 36,092 35,129 3
These include € 34,524 million (previous year: € 32,783 million) of amounts due to customers in Germany and € 1,568 million (previous year:
€ 2,346 million) of amounts due to customers outside Germany. Liabilities are classed as in Germany or outside Germany on the basis of
the registered office of the subsidiary.
In total, this item includes deferred interest of € 226 million (previous year: € 256 million).
Group as lessee (finance leases)
The net carrying amounts of leased assets classified as the economic property of the Group amount to € 324 million (previous year:
€ 335 million).
Lease liabilities mainly relate to liabilities from long-term rental agreements (up to and including 2026) for offices and business premises
at Alexanderplatz, Gustav-Meyer-Allee / Brunnenstrasse, Prinzregentenstrasse, Hardenbergstrasse, Bismarck- / Wilmersdorfer Strasse and
Fasanenstrasse.
The buildings used by the Bank at Alexanderplatz and Prinzregentenstrasse (central buildings) and Brunnenstrasse (service centre)
are held by closed-end real estate funds launched by Group companies. The use of these facilities currently entails annual rent obligations
of € 45 million for the Group (previous year: € 45 million).
The total portfolio of liabilities includes finance lease liabilities of € 626 million (previous year: € 634 million). On the basis of a now
more detailed database, there have been adjustments in the remaining terms for previous years.

174
Consolidated financial statements Notes to the statement of financial position
The future minimum lease payments are as follows:
in € million
31.12.2010 31.12.2009 Change
in %
less than one year 60 59 2
between one and five years 251 246 2
more than five years 825 890 – 7
Total 1,136 1,195 – 5
The discount amounts break down as follows:
in € million
31.12.2010 31.12.2009 Change
in %
less than one year 51 51 0
between one and five years 193 197 – 2
more than five years 266 313 – 15
Total 510 561 – 9
The present value of the minimum lease payments (remaining maturities) breaks down as follows:
in € million
31.12.2010 31.12.2009 Change
in %
less than one year 9 8 13
between one and five years 58 49 18
more than five years 559 577 – 3
Total 626 634 – 1
As in the previous year, contingent rent for the financial year amounted to € 0 million.
This is offset by future income from non-cancellable subletting agreements of € 30 million (previous year: € 34 million).
49 Securitised debt
The following table shows a breakdown of total securitised liabilities by type of financial instrument. Information on the carrying amount has
been disclosed for each category of securitised liabilities.
in € million
31.12.2010 31.12.2009 Change
in %
Bonds issued 24,159 28,480 – 15
Mortgage bonds 8,349 7,893 6
Public-sector pfandbriefs 7,929 11,534 – 31
Other bonds 7,881 9,053 – 13
Other securitised debt 536 177 > 100
Total 24,695 28,657 – 14
Other securitised debt includes money market papers (e.g. commercial papers, certificates of deposit and euro notes).

Contractual remaining maturities of securitised liabilities:
in € million
31.12.2010 31.12.2009 Change
in %
up to three months 3,278 1,879 74
between three months and one year 2,868 6,229 – 54
between one and five years 14,482 13,734 5
more than five years 4,067 6,815 – 40
Total 24,695 28,657 – 14
Material issues, repayments and repurchases of debt and equity securities in the 2010 financial year can be broken down as follows:
Category
Currency
Nominal
amount
(in million
currency units)
2010
Issue Bonds EUR 206 1,440
Mortgage bonds EUR 1,862 1,560
Bonds USD 1,783 1,188
Bonds JPY 101,876 0
Bonds CHF 479 229
Repayment Bonds EUR 2,813 2,025
Mortgage bonds EUR 5,349 3,950
Bonds USD 2,032 599
Bonds JPY 101,876 0
Bonds FRF 0 3,250
Bonds CHF 709 0
Buyback Bonds EUR 0 319
Repurchases of own shares also form part of the Bank’s regular trading activities.
The total amount of securitised debt includes deferred interest of € 336 million (previous year: € 401 million).
No collateral was pledged for own debt in the financial year or the previous year.
50 Negative fair value of derivative hedging instruments
Liability hedging instruments to which hedge accounting in line with IAS 39 was applied break down as follows:
in € million
2009
31.12.2010 31.12.2009 Change
in %
Negative fair values of derivatives in micro fair value hedges 1,372 1,169 17
Negative fair values of derivatives in macro cash flow hedges 628 455 38
Total 2,000 1,624 23
€ 1,890 million of liability derivative hedging instruments is non-current.
Consolidated financial statements Notes to the statement of financial position 175

176
Consolidated financial statements Notes to the statement of financial position
51 Financial liabilities recognised at fair value through profit or loss
This item includes trading liabilities and investment book derivatives (held-for-trading) and financial liabilities designated at fair value.
in € million
31.12.2010 31.12.2009 Change
in %
Trading liabilities 10,936 12,011 – 9
Financial liabilities designated at fair value 16,733 16,310 3
Total 27,669 28,321 – 2
Trading liabilities
in € million
31.12.2010 31.12.2009 Change
in %
Obligations from short sales of securities 420 507 – 17
Negative fair value of trading book derivative financial instruments 7,662 8,356 – 8
Negative fair value of investment book derivative financial instruments 2,854 3,148 – 9
Total 10,936 12,011 – 9
Breakdown of liabilities held for trading by remaining maturity:
up to three months
between
three months
and one year
between
one and five years
more than five years
in € million 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Obligations from short sales
of securities 395 476 4 0 21 31 0 0 420 507
Negative fair value of trading book
derivative financial instruments 245 531 666 1,022 3,117 3,706 3,634 3,097 7,662 8,356
Negative fair value of investment book
derivative financial instruments 98 104 55 277 1,403 1,339 1,298 1,428 2,854 3,148
Total 738 1,111 725 1,299 4,541 5,076 4,932 4,525 10,936 12,011
Financial liabilities designated at fair value:
in € million
31.12.2010 31.12.2009 Change
in %
Deposits by banks 623 633 – 2
Amounts due to customers 848 1,015 – 16
Securitised debt 15,116 14,531 4
Subordinated capital / hybrid capital 146 131 11
Total 16,733 16,310 3
Total

Breakdown of fair value option financial liabilities by contractual remaining maturity:
up to three months
between
three months
and one year
between
one and five years
more than five years
in € million 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Deposits by banks 66 50 29 169 346 314 182 100 623 633
Amounts due to customers 31 29 28 136 284 232 505 618 848 1,015
Securitised debt 2,723 1,086 1,248 712 9,851 9,739 1,294 2,994 15,116 14,531
Subordinated capital/hybrid capital 0 0 0 0 31 26 115 105 146 131
Total 2,820 1,165 1,305 1,017 10,512 10,311 2,096 3,817 16,733 16,310
The change in the fair values of the above items due to a change in the (Bank’s) default risk (credit spread) for 2010 amounts to € 11 million
(previous year: € 80 million).
The cumulative changes in value amounted to € 47 million (previous year: € 32 million * ).
In calculating the above amounts, liabilities were initially measured at the respective current credit spread at the end of the reporting period.
The liabilities were then measured at the respective credit spread as at the end of the prior year reporting period. The portion of the change in
fair value relating to the change in (the Bank’s own) risk of default (credit spread) is therefore the difference between these two measurements.
The difference between the carrying amount of the financial liability and the amount to be repaid by the Bank on maturity as contractually
agreed was € 262 million (previous year: € – 161 million). This includes the effect of zero bonds and zero promissory notes in the
amount of € – 127 million (previous year: € – 578 million) arising from the discounted payment typical for zero bonds and zero promissory
notes and repayment at the nominal amount.
52 Provisions
Provisions break down as follows:
in € million
31.12.2010 31.12.2009 Change
in %
Pension provisions 907 907 0
Other provisions 285 307 – 7
Provisions for EU measures 16 16 0
Restructuring provisions 44 48 – 8
Provisions for risks from the lending business 13 18 – 28
Miscellaneous other provisions 212 225 – 6
Total 1,192 1,214 – 2
The provisions for EU measures relate to the restructuring aid approved in the EU financial assistance proceedings. Restructuring provisions
include staff and location measures. Provisions for risks from the lending business relate primarily to guarantees. Other provisions include
amounts for staff (€ 76 million), litigation costs (€ 18 million), warranty obligations and equalisation claims (€ 15 million), other taxes (€ 21 million)
and miscellaneous (€ 82 million). The provisions for staff measures include expenses for variable remuneration components, partial
early retirement and early retirement plans. The miscellaneous item essentially relates to the restoration costs for central and local locations.
The majority of provisions are due after one year.
* Figure for the previous year has been adjusted
Consolidated financial statements Notes to the statement of financial position 177
Total

178
Consolidated financial statements Notes to the statement of financial position
52.1 Provisions for pensions
Detailed information on provisions for pensions and similar obligations is presented below.
General information
In the Landesbank Berlin Holding Group, employees acquire rights and benefits from direct pension plans. The pension provisions required
to satisfy the obligations arising from these direct pension plans are recognised in the statement of financial position accordingly.
Measurement method and actuarial assumptions
Provisions for retirement benefits are calculated annually by third-party actuarial experts using the projected unit credit (PUC) method in
accordance with IAS 19.64. This method sees each period of service as giving rise to an additional unit of the final benefit entitlement and
measures each unit separately to build up the final obligation.
Assets
Plan assets are recognised at fair value (IAS 19.102).
Recognition of actuarial gains and losses
In order to recognise actuarial gains and losses, the Bank exercises the option to offset all gains and losses incurred in a reporting year
against equity (IAS 19.93A). As a result, actuarial gains and losses are shown in full in equity.
In the 2010 financial year, the effects in equity amount to € 31 million (previous year: € – 33 million).
Pension obligations
a) Defined contribution plan
For one group of employees, the pension plan is an indirect defined contribution plan in which the employer pays set pension contributions
to third-party funds (pension funds and life insurance companies), possibly with the employee also contributing. In such cases, the amount
of future benefits is determined by the contributions paid and – for the non-guaranteed portion of benefits – the cumulative return on these
assets. As a result of the classification of this pension scheme, the contributions paid to third-party insurance funds are recognised as a current
expense; accordingly, no pension provisions are required to be recognised.
In the financial year, € 559 thousand was recognised in profit or loss as a current expense (previous year: € 556 thousand).
b) Defined benefit plan
There are several pension schemes of various methodologies in the Landesbank Berlin Holding. All pension plans are based on corresponding
collective service agreements or individual commitments contained in employment contracts (pension agreements). The key pension
schemes are:
Group pension scheme (Plan 100)
Pension schemes for employees who joined the Company before 1 July 1988 (Plan 200)
Pension schemes for employees who joined the Company after 30 June 1988 (Plan 210)
Individual pension agreements (Plan 220 / 230)
Pension in accordance with the articles of association of the Versorgungsanstalt des Bundes und der Länder – VBL – (Plan 300)
Pension scheme for Landesbank Berlin (Plan 310)
Pension scheme dated 1 January 1984 (BerlinHyp)
Pension scheme dated 30 December 1993 (BerlinHyp)
Pension scheme of the former Berliner Industriebank (Plan 520 / 521)

Consolidated financial statements Notes to the statement of financial position 179
These are essentially salary-based systems (pension unit / points system), salary-based benefit systems (final salary pension plans) and
nominal amount systems (flat salary pension plans). Retirement, reduced working capacity earnings and surviving dependants’ pensions are
provided for depending on the occurrence of the insured event under the statutory pension scheme. There are no gender-specific or agebased
distinctions. The standard age limit is generally the employee’s 65th birthday, unless the age limit for the statutory pension scheme
is applied. Company pensions are paid for life; lump-sum benefits are not generally provided for. Benefits are adjusted in accordance with
agreed criteria (e.g. development of collective salary agreements) or under the duty to make adjustments in accordance with Article 16 BetrAVG
(German Company Pensions Act).
As at 31 December 1994, all collective pension schemes were closed for new entrants. Since 1 January 1995, direct pension
schemes for newly appointed employees have been defined in accordance with the regulations of the Group pension scheme.
There is an occupational pension scheme for Landesbank Berlin International S.A. (Luxembourg) and Landesbank Berlin AG,
Luxembourg branch. The obligation was spun off to a third-party insurance company. The scheme provides for retirement benefits and
benefits for the event of invalidity and for surviving dependents. The financing of this scheme is the responsibility for the employer only.
The annual premiums are calculated in line with German Commercial Code regulations. This is also a defined benefit system as the amount
of benefits – irrespective of the premiums paid – is ultimately based on the pensionable annual salary at the time of the occurrence of the
insured event.
Provident fund
The “Unterstützungskasse der Landesbank Berlin Holding AG e.V.” provident fund is a legally independent pension institution in the legal
form of a registered association. It was formed in 1952 and has the sole purpose of providing its members with benefits (pensions due to
old age, reduced earnings capacity, pensions for surviving dependents). The provident fund is financed in accordance with the principles of
Article 4d EStG, which defines the scope and permissibility of allocations / voluntary grants by sponsoring companies and the amount of
cash assets permissible under tax regulations.
As at 1 July 1999, the method of performance for occupational pension schemes in the Group was harmonised. From this date
onwards, ongoing company pensions in the Group are financed exclusively from the pension provisions of the companies. Members
receiving ongoing benefits from the provident fund prior to the above date were not affected by this.
As at 31 December 2010, 808 pensioners were receiving monthly benefits from the provident fund. As at 31 December 2010, the
cash assets of the provident fund (all sponsoring companies) amounted to around € 16.0 million (previous year: around € 18.2 million).

180
Consolidated financial statements Notes to the statement of financial position
Actuarial assumptions
Economic assumptions:
31.12.2010 31.12.2009
Interest rate 5.40 % 5.50 %
Salary trend 0.50 % – 3.50 % 3.00 % – 3.50 %
Pension trend (individually by pension plan) 1.00 % – 2.20 % 1.00 % – 3.00 %
Development of income threshold in statutory pension scheme (BBG)
(within and outside Germany) 2.00 % – 3.00 % 2.00 % – 3.00 %
Asset yields (provident fund only) 3.10 % 3.40 %
Fluctuation (total asset holdings)
Up to age of 30 5.00 % 5.00 %
Up to age of 40 3.00 % 3.00 %
Up to age of 50 1.00 % 1.00 %
From 50 and upwards 0.00 % 0.00 %
Demographic assumptions:
Pension age: earliest possible start of pension in statutory pension scheme in accordance with RVAGAnpG
Biometric risks: Prof. Heubeck tables, 2005 G IGSS mortality tables (Luxembourg)
Structure of provisions for pensions:
in € million 31.12.2010 31.12.2009
Present value of funded pension provisions (DBO) 23 24
Less fair value of plan assets – 16 – 18
7 6
Present value of non-funded pension provisions (DBO) 900 901
Total 907 907
Development of provisions for pensions:
in € million 2010 2009
Provisions for pensions as at 1.1. 907 844
Current service cost 18 17
Past service cost – –
Interest cost 50 49
Expected return on plan assets – 1 – 1
Pension benefits paid in reporting year – 36 – 36
Changes in the scope of consolidation 0 1
Actuarial gain / loss – 31 33
Provisions for pensions as at 31.12. 907 907

Development of pension obligations (DBO):
in € million 2010 2009
Pension obligations as at 1.1. 925 864
Current service cost 18 17
Past service cost – –
Interest cost 50 49
Pension benefits paid in reporting year – 39 – 39
Changes in the scope of consolidation 0 1
Actuarial gain / loss – 31 33
Pension obligations as at 31.12. 923 925
Taking into account the actuarial gains and losses, the provisions for pensions and similar obligations of € 907 million in the Group did not
change as against the previous year.
Structure of plan assets
The structure of plan assets shown relates solely to the provident fund.
in % 2010 2009
Bonds
Fixed-income 81.8 72.7
Non-fixed income 5.9 4.8
Shares, investment certificates, options
Domestic 8.5 17.6
International 2.8 3.5
Bank balances 1.0 1.4
Total 100 100
The expected return on plan assets is derived from current returns for the financial year for the various asset classes, taking into
consideration their weighting in total assets.
Development of plan assets
The plan assets consist of the assets of the provident fund (€ 16 million) and three direct insurance policies (€ 0.4 million).
in € million 2010 2009
Fair value of plan assets as at 1.1. 18 20
Expected return on plan assets 1 1
Actuarial gain / loss 0 0
Pension payments – 3 – 3
Fair value of plan assets as at 31.12. 16 18
Current income from plan assets amounts to € 510 thousand (previous year: € 867 thousand).
The assets of the provident fund include fixed-income debt securities of a subsidiary in the amount of € 1.0 million (previous year:
€ 2.5 million) but, as in the previous year, no non-fixed-income securities.
Actuarial gains and losses offset against equity:
Consolidated financial statements Notes to the statement of financial position 181
in € million 2010 2009
Actuarial gains / losses
Financial year 31 – 33
Cumulative previous years – 47 – 14
Total – 16 – 47

182
Consolidated financial statements Notes to the statement of financial position
Summary of amounts recognised in profit or loss:
in € million 2010 2009
Current service cost 18 17
Past service cost – –
Interest cost 50 49
Expected return on plan assets – 1 – 1
Total 67 65
These amounts are all reported in profit or loss under administrative expenses.
Overview of key data for the financial year and the maximum three preceding years:
in € million 2010 2009 2008 2007
Pension obligation (DBO) 923 925 864 865
Plan assets 16 18 20 23
Surplus in the plan 907 907 844 842
Actuarial gains and losses
in %
Experience adjustments to:
31 – 33 28 101
DBO 7.2 5.4 2.0 12.5 1)
Plan assets – 0.5 0.3 – 2.0 – 5.0
1) relates almost exclusively to the effects of changes in actuarial assumptions
Expected future receipts and payments:
in € million 2011 2010
Payments into plan assets (provident fund) 0 0
Expected direct pension payments – 39 – 37
Pension-related obligations also include obligations for early retirement plans and partial retirement plans, which are also calculated on
an actuarial basis. As at 31 December 2010, calculations were based on an interest rate of 2.2 % (previous year: 3.5 %). These obligations
are reported under “Other provisions”.
52.2 Other provisions
in € million 2010 2009
As at 1.1. 307 324
Additions 74 86
Utilisation 70 90
Reversals 31 22
Reclassification – 1 0
Change in scope of consolidation 0 1
Effects of changes in exchange rates 0 0
Interest effects 6 8
As at 31.12. 285 307

Of which: Provisions for EU measures
in € million 2010 2009
As at 1.1. 16 15
Utilisation 1 1
Reversals 0 0
Interest effects 1 2
As at 31.12. 16 16
Of which: Restructuring provisions
in € million 2010 2009
As at 1.1. 48 46
Additions 7 5
Utilisation 6 6
Reversals 1 0
Reclassification – 5 0
Interest effects 1 3
As at 31.12. 44 48
Of which: Provisions for risks from the lending business
in € million 2010 2009
As at 1.1. 18 24
Additions 1 4
Utilisation 0 0
Reversals 6 10
Reclassification 0 0
Interest effects 0 0
As at 31.12. 13 18
Of which: Miscellaneous other provisions
Consolidated financial statements Notes to the statement of financial position 183
in € million 2010 2009
As at 1.1. 225 239
Additions 66 77
Utilisation 63 83
Reversals 24 12
Reclassification 4 0
Change in scope of consolidation 0 1
Effects of changes in exchange rates 0 0
Interest effects 4 3
As at 31.12. 212 225

184
Consolidated financial statements Notes to the statement of financial position
53 Income tax liabilities
Income tax liabilities break down as follows:
in € million
31.12.2010 31.12.2009 Change
in %
Current taxes 120 136 – 12
Deferred taxes 15 15 0
Total 135 151 – 11
€ 93 million of income tax liabilities are non-current (previous year: € 120 million).
Deferred tax liabilities reflect the potential income tax charges arising from timing differences between the carrying amounts of
assets and liabilities in the IFRS consolidated statement of financial position and the tax base in accordance with local tax laws for Group
companies. Deferred tax liabilities were recognised in connection with the following items (before netting):
in € million
31.12.2010 31.12.2009 Change
in %
Loans and advances to banks and customers less risk provisioning 0 0 0
Positive fair value of derivative hedging instruments 357 299 19
Financial assets recognised at fair value 361 3,171 – 89
Financial assets 140 103 36
Property, plant and equipment and intangible assets 106 111 – 5
Other assets 1 9 – 89
Deposits by banks and amounts due to customers 141 222 – 36
Securitised debt 393 0 x
Provisions 4 12 – 67
Other liabilities 33 6 > 100
Subtotal 1,536 3,933 – 61
Netted against deferred tax assets – 1,521 – 3,918 61
Total 15 15 0
For the purposes of presentation in the statement of financial position, deferred tax assets and liabilities were netted at the level of the
individual company taking into account the operations in Income Tax Treaty States.
54 Other liabilities
in € million
31.12.2010 31.12.2009 Change
in %
Liabilities from collateral received 1,669 1,885 – 11
Trade payables 77 77 0
Deferred income 22 33 – 33
Other tax liabilities (excl. income tax liabilities) 3 1 > 100
Miscellaneous 113 117 – 3
Total 1,884 2,113 – 11
All liabilities are to be met in the short term.

55 Subordinated capital
in € million
31.12.2010 31.12.2009 Change
in %
Subordinated liabilities 1,548 1,844 – 16
up to three months 24 12 100
between three months and one year 4 383 – 99
between one and five years 500 478 5
more than five years 1,020 971 5
Profit participation certificates 0 0 0
up to three months 0 0 0
between three months and one year 0 0 0
Dormant participations 700 700 0
more than five years 700 700 0
Total 2,248 2,544 – 12
In accordance with Article 10 (5a) KWG, subordinated liabilities count as equity for regulatory purposes. Subordination refers to the order
in which creditors’ claims are satisfied in the event of insolvency or liquidation. In such cases, subordinated liabilities are only repaid after
the claims of all prior creditors have been satisfied. Interest expenses include the profit-based interest owed to S-Erwerbsgesellschaft
of € 51 million (7.22 %) for the dormant participation.
56 Equity
in € million
31.12.2010 31.12.2009 1) Change
in %
1.1.2009
Issued capital 2,555 2,555 0 2,555
Capital reserves 77 77 0 76
Retained earnings 258 130 98 – 76
Legal reserves 39 25 56 13
Other retained earnings 230 138 67 – 80
Reserves for pensions measured in line with IFRS – 11 – 33 67 – 9
Currency translation reserve 1 1 0 – 9
Revaluation surplus – 181 – 189 4 – 664
Revaluation surplus (available-for-sale) – 82 – 96 15 – 581
Revaluation surplus (CFH) – 99 – 93 – 6 – 83
Non-controlling interests 12 138 – 91 80
Total 2,722 2,712 0 1,962
1) Figures for the previous year have been adjusted
Consolidated financial statements Notes to the statement of financial position 185

186
Consolidated financial statements
Other notes
57 Adjustments due to changes in accordance with IAS 8
Adjustments were made in accordance with IAS 8.42 in the annual financial statements as at 31 December 2009 and the interim financial
statements as at 31 March 2010, 30 June 2010 and 30 September 2010.
The following matter led to an adjustment of the comparative prior-year figures in the annual financial statements as at 31 December 2010:
There was an adjustment of the calculation of impairment for non-consolidated fund units in the available-for-sale category with
regard to the assets included in the fund. In this context, there were adjustments to impairment losses and reversals of impairment losses
in both the revaluation surplus and the income from financial assets. The income statement before taxes was adjusted in the amount of
€ 6 million for the 2010 financial year and the corresponding prior-year figures for 2009 (€ 10 million).
Income statement 2009
in € million
Published
consolidated
financial
statements
Adjustment
Consolidated
financial statements
after
adjustment
Net income from financial assets – 97 – 10 – 107
Net profit before taxes 339 – 10 329
Income tax expense 67 – 3 64
Consolidated net profit for the period / earnings after taxes 272 – 7 265
Net profit / loss attributable to non-controlling interests 15 – 15
Consolidated net profit for the period of the shareholders of the parent company 257 – 7 250
Earnings per share for the previous year changed from € 0.26 to € 0.25.
The comparative figures for net income recognised in equity for the period changed as follows:
Total comprehensive income for 2009
in € million
Published
consolidated
financial
statements
Adjustment
Consolidated
financial statements
after
adjustment
Reserve for the measurement of available-for-sale financial instruments 616 + 10 626
of which reclassification to the income statement 18 + 10 28
Deferred taxes on the reserve for the measurement of available-for-sale financial instruments 132 + 3 135
Net income recognised in equity 461 + 7 468
Total comprehensive income 733 – 733
In connection with the above adjustment, we corrected the 2009 comparative figures for the relevant items of the statement of financial
position as follows:
Statement of financial position as at 31.12.09
in € million
Published
consolidated
financial
statements
Adjustment
Consolidated
financial statements
after
adjustment
Retained earnings 137 – 7 130
Revaluation surplus – 196 + 7 – 189
There were also adjustments in the disclosures on the cumulative change in financial liabilities recognised at fair value due to a change in
the Bank’s default risk (credit spread) on account of the more detailed data now available.

58 Trust activities
Trust activities, which are not reported in the statement of financial position, existed as follows at the end of the reporting period:
in € million
31.12.2010 31.12.2009 Change
in %
Loans and advances to customers 57 92 – 38
Total trust loans 57 92 – 38
Deposits by banks 7 9 – 22
Amounts due to customers 50 83 – 40
Total trust loans 57 92 – 38
59 Contingent liabilities and similar obligations
Contingent liabilities and similar obligations were not recognised in the statement of financial position. They describe current obligations of
the Group in which an outflow of economic resources to settle the obligations is not likely or the amount / settlement date of the obligation
cannot be reliably determined.
A possible default from irrevocable loans commitments was taken into consideration by the recognition of a portfolio-based
allowance for impairment losses, which was reported under risk provisioning (note 36).
Quantifiable
in € million
31.12.2010 31.12.2009 Change
in %
Contingent liabilities from guarantees and warranties 843 964 – 13
Credit guarantee 485 551 – 12
Letters of credit 16 3 > 100
Other guarantees 342 410 – 17
Irrevocable loan commitments (current account credits, guarantee loans,
public-sector / mortgage loans, other irrevocable loan commitments) 4,561 4,707 – 3
Total 5,404 5,671 – 5
As at 31 December 2010, other contingent liabilities from rental guarantees in the Group amounted to € 675 million (previous year: € 655 million).
In some cases, liability for the joint and several liability of various companies agreed in the detailed agreement with the State of
Berlin was allocated internally by way of an agreement dated August 2002, supplemented in August 2004. This provides for a partial
reimbursement of costs, largely in line with the investments in the company with which liability originated.
The detailed agreement also includes provisions relating to a debtor warrant, which is designed as a partial profit transfer
agreement with a term of 15 years and based on defined equity ratios.
Consolidated financial statements Other notes 187
In exchange for protection from risks, a fixed amount of € 15 million is also to be paid annually starting from the 2002 financial year
and initially continuing up to and including 2011. Negotiations will then be reopened. These costs were also allocated on the basis of the
agreement dated August 2002, supplemented in August 2004, providing for the reimbursement of the costs by Landesbank Berlin AG,
Berlin-Hannoversche Hypothekenbank AG and Investitionsbank Berlin in accordance with the volume ratios of the banks’ loans protected
by the loan guarantee.
In the year under review, the additional funding obligations from investments in the amount of € 13 million (previous year: € 13 million)
relate solely to the investment in Liquiditätskonsortialbank GmbH. There are also payment obligations for investments of € 7 million (previous
year: € 8 million).
In the case of four closed-end real estate funds, Group companies are obliged to acquire the limited partners’ units on request.
These obligations have a total nominal amount (100 %) of € 189 million. The redemption values may be up to 115 % or € 217 million of the
nominal obligations if the rights of tender are not exercised before 2024.
The contributions for the Deposit Guarantee Reserve of the Landesbanks and Girozentralen were measured in line with risk-oriented
principles. As at the end of the year, this resulted in an obligation to make a supplementary contribution of up to € 72 million on the part
of Landesbank Berlin AG should it be established that support is required resulting from the joint liability. This contribution can then be
demanded immediately.
The Bank achieved the agreed minimum acceptance quantities in the IT service agreements with FinanzInformatik GmbH and
Siemens IT Solutions and Services Management GmbH (SIS).

188
Consolidated financial statements Other notes
Non-quantifiable
Landesbank Berlin AG holds a 99.66 % interest in Berlin-Hannoversche Hypothekenbank AG as at 31 December 2010. In line with the
contract of December 2007, this is a member of the Landesbank and Girozentralen Deposit Guarantee Reserve. In accordance with the
declaration of 12 December 2007, Landesbank Berlin AG is obliged, as the holder of the Deposit Guarantee Reserve of the Landesbanks
and Girozentralen, to refund all expenses of Deutsche Sparkassen- und Giroverband e.V., including interest and foregone interest income for
support measures, which cannot be settled using financial resources from the fund created for Berlin-Hannoversche Hypothekenbank AG.
In accordance with Article 5 (10) of the Statutes of the Deposit Guarantee Fund, Landesbank Berlin Holding AG is also directly obliged
to exempt Bundesverband deutscher Banken e.V. in the event of any losses that may occur as a result of measures taken for netbank AG.
The main contingent liabilities relating to litigation or legal risks are as follows:
indemnity declarations by LBB and IBG,
disposal of the shares in Allgemeine Privatkundenbank Aktiengesellschaft (Allbank),
risks from the implementation of the detailed agreement and the disposal of the key Group real estate companies to the State of Berlin.
There are also contingent assets arising from litigation, the amount of which cannot be reliably measured at the current time. Therefore,
no figure has been disclosed in accordance with IAS 37.92.
Further information on legal risks can be found in the management report in the risk report section.
60 Risk management
The purpose of the disclosure requirements under IFRS is to ensure that readers of the financial statements have a comprehensive overview
of the risk situation of the Group, thus giving them a better understanding of the effects of financial instruments on the net assets, financial
position and results of operations.
The information required by IFRS 7 on the nature and extent of risks arising from financial instruments and their management can
be found in the risk report in the management report.
61 Disclosures on financial instruments
61.1 Re-categorisation of financial instruments
In the fourth quarter of 2008, financial assets classified as available-for-sale and as at fair value through profit or loss (held-for-trading)
were re-categorised to loans and receivables. The Group both intends to and is able to hold these securities for the foreseeable period or
to maturity. As in the previous year, there were no other recategorisations in 2010.
The carrying amounts as at the date of recategorisation and the fair values and carrying amounts as at the end of the subsequent financial
years are as follows:
in € million
A. from available-for-sale
financial assets to loans and
receivables financial assets
B. from held-for-trading
to loans and
receivables financial assets
Carrying amount at date of recategorisation
(A = 1.10.2008 / B = 9.12.2008) 37,822 504
31.12.2009
Carrying amount 27,013 449
Fair value 26,936 451
31.12.2010
Carrying amount 19,458 401
Fair value 19,137 387

Part of the change in value is due to the fact that the amounts for A have decreased by € 18,878 million and amounts for B have decreased
by € 119 million since recategorisation due to maturities. This was offset by the effect of changes in the carrying amount.
As at the date of reclassification, the effective interest rate for financial instruments in category A was between 1.44 % and 15.33 %,
with anticipated recoverable cash flows of € 43,888 million. The effective interest rate for financial instruments in category B was between
3.97 % and 9.89 % at the date of recategorisation, with anticipated recoverable cash flows of € 615 million.
The following effects were recognised for the recategorised financial instruments in the reporting year:
in € million
Interest amortisation
Recognition in profit
or loss in equity
Impairment losses
Recognition outside profit
or loss in equity
Amortisation and disposals
in the available-for-sale
revaluation surplus
31.12.2010 12 16 133
31.12.2009 3 38 207
31.12.2008 – 7 16 58
The amortisation and disposals in the available-for-sale revaluation surplus were compensated by changes in the carrying amount and
therefore had no material effect on results.
Without the recategorisation, the following effects would have been recognised in the reporting year:
in € million
Gain on remeasurement
in net trading
income
Recognition in profit
or loss in equity
Impairment losses
Consolidated financial statements Other notes 189
Recognition outside profit
or loss in equity
Amortisation and disposals
in the available-for-sale
revaluation surplus
31.12.2010 – 10 13 – 139
31.12.2009 6 33 378
31.12.2008 3 16 – 124
61.2 Fair values of financial instruments
Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm’s
length transaction. Quoted market prices are used if available. If none are available, the fair value is calculated using internal valuation models
with current market parameters. Investment techniques such as the present value method and the option pricing model are applied in this
process. For some financial instruments, other factors which were appropriate for calculating the fair value of the financial instrument were
taken into account as well as observable market data. Particularly if no current market prices are available, then modified quotes are used –
i.e. adjustment of the most recent quotes to current development using input factors which can be observed on or derived from the market
and own estimates.

190
Consolidated financial statements Other notes
Below, there is a list comparing the fair values and carrying amounts for each class of financial instruments carried in the statement of
financial position at fair value / at amortised cost:
Fair value Carrying amount Hidden reserves
in € million 31.12.2010 31.12.2009 31.12.2010 31.12.2009 31.12.2010 31.12.2009
Assets
Loans and receivables 87,193 101,877 86,062 100,669 1,131 1,208
Loans and advances to banks 16,747 22,377 16,708 22,309 39 68
Loans and advances to customers 46,591 48,051 44,944 46,563 1,647 1,488
Financial assets 23,855 31,449 1) 24,410 31,797 1) – 555 – 348
Available-for-sale 19,447 16,294 19,447 16,294 0 0
Loans and advances to banks 0 116 0 116 0 0
Loans and advances to customers 508 949 508 949 0 0
Financial assets 18,939 15,229 1) 18,939 15,229 1) 0 0
Held-to-maturity 1,729 1,730 1,664 1,661 65 69
Financial assets 1,729 1,730 1,664 1,661 65 69
Total 108,369 119,901 107,173 118,624 1,196 1,277
Equity and liabilities
Other liabilities
Deposits by banks 32,917 41,451 32,840 41,370 – 77 – 81
Amounts due to customers 2) 35,771 34,588 36,092 35,129 321 541
Amounts due to customers 3) 36,647 35,569 36,092 35,129 – 555 – 440
Securitised debt 24,889 28,889 24,695 28,657 – 194 – 232
Subordinated capital incl. dormant participations 2,090 2,356 2,248 2,544 158 188
Total 2) 95,667 107,284 95,875 107,700 208 416
Total 3) 96,543 108,265 95,875 107,700 – 668 – 565
1) Figure for the previous year has been adjusted (rounding)
2) Including theoretical tax scenarios for variable financial instruments
3) Not including theoretical tax scenarios for variable financial instruments
If fair values cannot be reliably determined for certain equity instruments (affiliated companies and investments) in financial assets, they
have been reported at cost.
For fair value category financial instruments (held-for-trading and fair value option) and hedging derivatives the carrying amounts
are equal to the fair values; these transactions are therefore not shown in the above table and can be found under the appropriate note.
For transactions not shown on the face of the statement of financial position (trust activities, contingent liabilities and similar
obligations) there are no significant features of business were identified which would lead to a fair value not equal to zero beyond the
provisions recognised and the portfolio-based allowances for impairment losses recognised for transactions not shown on the face of
the statement of financial position. The corresponding nominal amounts are not shown in this table but are included in the respective notes.
61.3 Methods and assumptions used in calculating fair values
In calculating fair values, the Group applies the regulations of IAS 39 including additional application information concerning measurement
at fair value on inactive markets / for illiquidity.
In line with the measurement hierarchy, quoted or other market prices are used first. If such values are unavailable, fair value is
measured using standard valuation models. In line with IAS 39.AG 82, these factor in observable market data and other factors that can
influence the fair value of a financial instrument.
As at 31 December 2010, market or transaction prices were available for a majority of promissory note loans held. However, there
was still a small amount of financial instruments for which it was not possible to use prices of transactions on an active market in order to
ascertain their fair value (IAS 39.AG71-73).

Consolidated financial statements Other notes 191
In such cases, fair values are calculated on the basis of discounted cash flows, with the discounting factors including interest rates observable
on the market, general credit spreads (external category spreads according to industry, origin and rating) and individual credit spreads
(specific to the instrument and the issuer). In order to determine the latter, the most recently observed plausible, individual spreads or current
spreads of related bonds and credit default swaps and their own estimates are considered in a differentiated examination. These may, for
example, result from support activities by national governments. The credit spreads used for measurement are regularly checked and
adjusted to ensure that they reflected the market.
Held-for-trading and fair value option financial instruments and hedging derivatives
In line with the measurement hierarchy of IAS 39, the fair values of trading financial instruments, trading book and investment book derivatives
(held-for-trading) and hedging derivatives are primarily calculated on the basis of stock market and broker prices. If these amounts do not
exist, fair value measurement relies on standard market measurement models (particularly present value methods and option pricing models)
using market parameters specific to the financial instruments. The latter applies to all OTC derivatives.
Fair value option financial instruments are usually measured using quoted or market prices. Fair values for promissory note loans
are calculated using standard, recognised measurement models.
Available-for-sale receivables and financial assets
Securities not held for trading, investments and affiliated companies reported as financial assets and selected promissory note loans are
assigned to the available-for-sale category. Their fair value is determined on the basis of exchange or market prices.
If it is not possible to calculate the fair value of securities not held for trading on the basis of quoted or market prices, they are
measured using standard models.
If the fair value cannot be reliably determined, recognition is at cost. The latter applies to non-listed shares in affiliated companies
and investments.
Receivables and financial assets of the loans and receivables category
The Group carries loans made directly to debtors and receivables due directly from debtors, acquired loans and receivables, bonds and
ABS securities that are not or were not traded on an active market at amortised cost – taking into account any impairment. The fair values
stated here are generally calculated using standard measurement models.
Loan portfolios are measured by discounting the cash flows with discounting factors, consisting of interest rates observable on the
market and the credit spreads. These are derived from default probabilities on the basis of the internal rating and internal security levels.
Due to design considerations, costs were not included in the measurement process.
For impaired receivables, cash flow profiles are derived on the basis of the collateral provided and realisation periods and expectations
of future payments and costs. The recoverable amount and therefore the fair value are determined by adding the discounted cash
flows as at the measurement date.
Financial assets in the held-to-maturity category
Bonds and other fixed-interest securities in the held-to-maturity category are recognised at amortised cost. Fair values for these assets are
derived both from available market prices and calculated using the measurement model shown.
Liabilities, securitised liabilities and subordinated capital (other liabilities category)
Deposits by banks and amounts due to customers, securitised liabilities and subordinated capital are carried at amortised cost. The fair
values for liabilities and subordinated capital including dormant participations – if there are no market prices for these or securitised liabilities –
are determined using standard, recognised measurement models.
Off-balance sheet transactions
For transactions not shown on the face of the statement of financial position (trust activities and contingent liabilities and similar obligations),
fair values were calculated only on the basis of models.
For contingent liabilities and similar obligations, conditions in line with the market are agreed upon on conclusion. These are
reviewed at least once a year and are adjusted in some cases. Trust activities only have a pass-through role.
As a result of the regular review of conditions for guarantees and the generally short duration of the irrevocable loan commitments
(including letters of credit), together with the pass-through role of trust activities, no significant features of business were identified which
would lead to a fair value not equal to zero.

192
Consolidated financial statements Other notes
61.4 Information on the fair value measurement hierarchy
The measurement hierarchy for the fair value of financial instruments breaks down as follows:
Level 1
The current market price observed on an active market is the best indicator for determining the fair value of financial instruments. The prices
provided by a stock exchange, trader, broker, industry group or a price agency are a standard for the measurement of fair value, provided
that the price reflects current and regular market transactions. Thus, market-traded equities, funds, bonds and derivatives are assigned to
this category.
Level 2
Financial instruments are assigned to level 2 if a resilient market price is not available for a financial instrument. In such cases the fair
value is measured using recognised and standard measurement methods. In these measurement models the input parameters are based
on observable market data. This category includes derivatives, bonds and promissory note loans not traded on a stock market.
Level 3
Financial instruments in this category have input parameters that cannot be directly observed on the market and there is a significant
influence on the fair value of the financial instrument. In such cases, the fair value is determined using realistic assumptions based on
market circumstances. These include impaired bonds, subordinated liabilities and asset-backed securities.
The financial instruments measured at fair value break down among the hierarchy levels as follows:
31.12.2010 31.12.2009
in € million Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Assets held for trading, derivatives 10,499 190 10,309 0 11,375 62 11,313 0
Assets held for trading, securities 1,173 559 457 157 1,512 593 794 125
Financial instruments designated at fair value 5,526 3,100 2,280 146 4,699 2,150 2,332 217
Loans and advances to banks (available-for-sale) 0 0 0 0 116 0 116 0
Loans and advances to customers (available-for-sale) 508 0 508 0 949 0 949 0
Financial assets (available-for-sale) 18,841 10,723 8,091 27 15,129 11,236 3,851 42
Positive fair value of derivative hedging instruments 1,182 0 1,182 0 983 0 983 0
Total assets 37,729 14,572 22,827 330 34,763 14,041 20,338 384
Liabilities held for trading, derivatives 10,516 185 10,331 0 11,504 100 11,404 0
Liabilities held for trading, other 420 191 229 0 507 289 218 0
Financial liabilities designated at fair value 16,734 4,686 11,902 146 16,310 6,911 9,268 131
Negative fair value of derivative hedging instruments 2,000 0 2,000 0 1,624 44 1,580 0
Total liabilities 29,670 5,062 24,462 146 29,945 7,344 22,470 131
Owing to the growing number of prices quoted on active markets, financial instruments with a fair value of € 57 million on the assets
side and € 142 million on the liabilities side were transferred from level 2 to level 1 in the 2010 financial year. As the remaining term of
financial instruments decreases, so too does the availability of prices on an active market. Hence. € 4,171 million on the assets side and
€ 2,337 million on the liabilities side were reclassified from level 1 to level 2.

The table below shows a statement of level 3 financial instruments carried at fair value, including all changes in holdings, transfers from level
3 and changes in measurement for the 2010 financial year:
in € million
1.1.2010 FV changes
in portfolio
in profit
or loss
Portfolio changes Disposals 31.12.2010
in equity Purchases Disposals Maturities to
level 1+ 2
Assets held for trading, securities 125 22 0 121 109 2 0 157
Financial instruments designated
at fair value 217 26 0 32 52 57 20 146
Financial assets (available-for-sale) 42 – 1 5 1 20 0 0 27
Total assets 384 47 5 154 181 59 20 330
Financial liabilities designated at fair value 131 15 0 0 0 0 0 146
Total liabilities 131 15 0 0 0 0 0 146
The total of fair value changes recognised in profit or loss is shown in the net income from financial instruments recognised at fair value
and net income from financial assets. The changes in these holdings as at the reporting date amounted to € 29 million in total.
The rising number of prices quoted on active markets was also a key factor in financial instruments transferred out of level 3 in
the 2010 financial year. There were no additions from levels 1 and 2.
The credit spreads were the only input parameters not observed on a market for financial instruments recognised in level 3. Normal
ranges were assumed for the effect of a change in this parameter. The effects are shown in the table below.
in € million
Consolidated financial statements Other notes 193
Change in fair value at
lower standard market limit
Change in fair value at upper
standard market limit
Assets held for trading, securities 0 0
Financial instruments designated at fair value 0 0
Financial assets (available-for-sale) – 5 5
Total assets – 5 5
Financial liabilities designated at fair value – 5 6
Total liabilities – 5 6
If carried at the limit of these ranges, the reported fair value would have been € 11 million higher or € 10 million lower respectively.

194
Consolidated financial statements Other notes
62 Collateral
Financial assets pledged as collateral include the following items (carrying amounts):
in € million
31.12.2010 31.12.2009 Change
in %
Loans and advances to banks 843 1,236 – 32
Loans and advances to customers 5,685 5,729 – 1
Financial assets recognised at fair value through profit or loss 2,766 1,817 52
Financial assets 24,662 30,896 – 20
Other assets 2,843 2,905 – 2
Total 36,799 42,583 – 14
Collateral for securities repurchase, securities lending and financial futures transactions was pledged in the context of standardised master
agreements, as is standard practice in international banking. Collateral for open market transactions was provided in line with the conditions
of Bundesbank and other collateral in line with Eurex repo conditions.
As at 31 December 2010, the Group had received collateral with a fair value of € 12,591 million (previous year: € 14,602 million)
from securities repurchase, securities lending and financial futures transactions. These transactions were carried out in line with standard
master agreements for securities repurchase, securities lending and financial futures transactions and Eurex repo conditions. If the Group
is to return securities of equal value to those it received at the end of the respective transaction, the recipient of the collateral has the right
to sell or otherwise pledge the collateral received. As at 31 December 2010, € 6,802 million (previous year: € 5,117 million) of this collateral
had been sold or pledged.
63 Related party disclosures
Related parties of the Landesbank Berlin Holding Group in line with IAS 24 include the following groups:
Erwerbsgesellschaft der S-Finanzgruppe mbH & Co. KG (S-Erwerbsgesellschaft) – majority shareholder of the Holding and general partner
of Beteiligungsgesellschaft der S-Finanzgruppe mbH & Co. KG (S-Beteiligungsgesellschaft) and – as general partner of S-Erwerbsgesellschaft
– Regionalverbandsgesellschaft der S-Finanzgruppe mbH (RVG),
subsidiaries of the Holding and companies over which the Group has significant influence,
natural persons in key positions at LBB and the Holding, particularly the members of the Board of Management and the Supervisory Board
and the managing directors of the controlling parent company.
Majority owner’s related party disclosures
In terms of the majority owner, the Holding’s related parties as defined by IAS 24 include the managing directors of RVG in addition to
S-Erwerbsgesellschaft, S-Beteiligungsgesellschaft and RVG.
As at 1 January 2008, Landesbank Berlin AG had a dormant participation by S-Erwerbsgesellschaft amounting to € 700 million.
S-Erwerbsgesellschaft assumed the dormant participation in the context of the acquisition process by the State of Berlin. In accordance
with the contract, the dormant partner has a results-based 7.22 % p.a. share in profits in relation to its capital contribution / it participates
in the cumulative loss / net loss for the year which would result without loss offsetting, in the ratio of the nominal capital contribution and the
overall nominal amount of the liable capital share. Remuneration of € 50.5 million was paid to S-Erwerbsgesellschaft for the dormant contribution
in the 2010 financial year.
In 2008, an agency agreement was concluded between LBB AG and RVG which regulates the preparation of IFRS consolidated
financial statements by LBB AG for RVG and related compensation. € 321 thousand was invoiced to RVG for the preparation of the 2009
RVG consolidated financial statements and the related services provided by LBB.
In December 2009, an agreement was concluded between LBB and RVG, S-Erwerbsgesellschaft and S-Beteiligungsgesellschaft
to take over agency services with regard to certain disclosure and reporting requirements under AktG, KWG and WpHG. LBB shall receive
an appropriate annual fee for the agreed services.

RVG, the general partner of S-Erwerbsgesellschaft, has a standard current account with the Bank, that was previously used to only a limited
extent (€ 9 thousand) for deposits. There were no reportable transactions in the reporting period. There were no banking relationships with
S-Erwerbsgesellschaft or S-Beteiligungsgesellschaft as at the reporting date.
A managing director of RVG has a standard current account with the Bank on a credit balance basis.
The members of the management of RVG and their dependents did not conduct any other reportable transactions.
Business and legal relationships with unconsolidated subsidiaries and companies over which the Group
has a significant influence
Related parties are shown in the “List of investment holdings” (note 66) under “Consolidated and unconsolidated subsidiaries”. The list of
shareholdings also includes companies over which the Group has a significant influence.
In the past financial year, the Group had business relationships with related parties as follows:
Unconsolidated subsidiaries
in € million
31.12.2010 31.12.2009 Change
in %
Assets
Loans and advances to customers 23 29 – 21
Other assets 8 12 – 33
Equity and liabilities
Amounts due to customers 2 6 – 67
There are impairment losses on unconsolidated subsidiaries in the amount of € 1.6 million (31 December 2009: € 1.5 million).
There are irrevocable loan commitments to unconsolidated subsidiaries of € 3.9 million (31 December 2009: € 2.8 million) and
guarantees of € 0.7 million (31 December 2009: € 0.7 million).
The Group had business relationships with companies over which it has a significant influence as follows:
Associated companies
in € million
31.12.2010 31.12.2009 Change
in %
Assets
Loans and advances to customers 121 124 – 2
Financial assets recognised at fair value through profit or loss 41 11 > 100
Financial assets 0 36 – 100
Equity and liabilities
Deposits by banks 41 69 – 41
Amounts due to customers 26 39 – 33
Financial liabilities recognised at fair value through profit or loss 20 15 33
Subordinated capital 20 20 0
There are impairment losses on associates in the amount of € 0.3 million (31 December 2009: € 0.3 million).
There are irrevocable loan commitments to associated companies of € 2.4 million (31 December 2009: € 0.0 million) and guarantees
of € 0.4 million (31 December 2009: € 0.4 million).
Consolidated financial statements Other notes 195

196
Consolidated financial statements Other notes
Joint ventures
in € million
31.12.2010 31.12.2009 Change
in %
Assets
Loans and advances to customers 3 3 0
Equity and liabilities
Amounts due to customers 2 5 – 60
There are no impairment losses, irrevocable loan commitments or indemnity guarantees for joint ventures (as was also the case as at
31 December 2009).
The loans extended to unconsolidated subsidiaries and companies over which the Group has a significant influence were granted
at standard market terms and conditions. The Group’s net interest income includes the interest expenses and income arising from these
business relationships. The net interest income of the Group is affected by its business relationships with unconsolidated subsidiaries and
companies over which it is able to exercise a significant influence in line with the volume of the respective loans and the standard interest
charged thereon.
Information on members of the Board of Management and the Supervisory Board
Effective 1 April 2010, Mr. Tessmann was appointed to the Board of Management of LBB and assumed responsibility for the Retail
Banking strategic division from Dr. Evers. At the same time, responsibility for the Personnel department passed from Dr. Veit to Dr. Evers.
Mr. Vetter left the Board of Management of the Holding and LBB as at 31 December 2010. At the request of the Board of
Management, he will remain a member of the Supervisory Board of Berlin-Hannoversche Hypothekenbank AG after leaving the Bank.
Dr. Evers, CEO of the Holding and LBB, also took on the Finance division for which Dr. Veit was previously responsible effective
1 January 2011.
To take over the Real Estate Financing division for which Dr. Veit was previously responsible, the Supervisory Board appointed
Mr. Bettink, CEO of Berlin-Hannoversche Hypothekenbank AG until 31 December 2010, to the Board of Management of LBB effective
1 January 2011.
Mr. Müller, Board of Management member at LBB, was appointed to the Board of Management of the Holding by the Supervisory
Board effective 1 January 2011. At LBB, Mr. Müller’s responsibilities include the Risk and Controlling division.
Mr. Kulartz, Board of Management member of LBB, has also taken on the Organisation and IT divisions of which Dr. Veit was
previously in charge effective 1 January 2011.
In line with the equity and regulatory law requirements, the variable remuneration of the members of the Board of Management
starting with the variable remuneration for the 2009 financial year has been geared more strongly towards sustainable corporate development
and has been given a multi-year assessment basis. 60 % of the variable remuneration for the 2009 financial year was paid after being
tipulated in 2010. The remaining 40 % is retained for a period of three years and partial amounts are paid out over the three financial years
following the year in which variable remuneration was determined. After adopting the annual financial statements for each financial year,
the Supervisory Board resolves the individual instalments over the retention period, taking into account the sustainable economic development
of the Group.
In accordance with the new requirements of the InstitutsVergV, the variable remuneration of the members of the Board of Management
starting with the variable remuneration for the 2010 financial year will be geared even more extensively than before towards sustainable
corporate development. Now 60 % of the variable remuneration is initially retained, 40 % is attributable to the base year. For the retained
portion of variable remuneration, the Supervisory Board shall resolve the release of the corresponding instalment in the three subsequent
financial years after adoption of the annual financial statements. Approval can be granted if the development of the Group and the individual
contribution by the member of the Board of Management have proven to be sustainable. Sustainability will be checked using the approach
already presented in the previous proceedings. Provided that the profit contribution is sustainable, the amount of the individual instalments
per year may amount to a maximum of 20 % of the total variable remuneration set in the base year.
Of the instalments of the variable remuneration approved by the Supervisory Board in the base year and in the three subsequent
years, half will then be paid out immediately in each case. The other half of the instalment approved is subjected to a further sustainability
test described in the management report in the section on the remuneration system for the Board of Management and the Supervisory Board.
Payment of this amount is blocked for a further three years and is only released subject to the sustainability of the contribution to success.

Variable remuneration totalling € 1,610 thousand was determined for the work by members of the Board of Management in the 2009 financial
year (previous year: € 0 thousand). € 270 thousand of this was attributable to Mr. Hans-Jörg Vetter, who left the Board of Management in
2009, and was paid in the 2010 financial year. 60 % of the variable remuneration (€ 804 thousand) was paid to current members of the Board
of Management as at 31 December 2010 after adoption of the annual financial statements 2009. The remaining 40 % (€ 536 thousand) will
be retained for a period of three years. No variable, performance-based remuneration was paid for the 2008 financial year.
The amount of variable remuneration for the 2010 financial year and the amount retained from the 2009 financial year to be paid
cannot yet be reliably determined as at the time of the annual financial statements being prepared. This information will be presented
in the 2011 half-year financial report.
The composition of the Supervisory Boards of LBBH and LBB changed in the 2010 financial year such that Mr. Jürgen Hilse left the
bodies from the end of the Annual General Meeting of LBBH on 15 June 2010 and of the Annual General Meeting of LBB on 14 June 2010
respectively. The Annual General Meetings of the companies each appointed Mr. Helmut Schleweis as their new member. An overview of
the composition of the Supervisory Board can be found in the notes.
The members of the Board of Management and the Supervisory Board of Landesbank Berlin Holding AG and Landesbank Berlin AG
received the following remuneration in the reporting period:
in € ’000
1.1. – 31.12.
2010
Consolidated financial statements Other notes 197
1.1. – 31.12.
2009
Total remuneration of the Board of Management of LBB 1) 5,326 4,475
of which total remuneration of the Board of Management of the Holding 2) 2,081 1,685
Total remuneration of the Supervisory Board of the Holding 3) 620 634
Total remuneration of the Supervisory Board of LBB 3) 262 262
Payments to former members of the Board of Management or their surviving dependents 4) 6,619 6,442
Addition to the pension obligations to active members of the Board of Management of LBB – 310 2,262
including additions to the pension obligations to active members
of the Board of Management of the Holding – 506 1,146
31.12.2010 31.12.2009
Provisions for pension obligations to these persons 84,036 94,206
Provisions for pension obligations to active members of the Board of Management
of LBB as at the end of the year 11,094 11,404
including provisions for pension obligations to active members
of the Board of Management of the Holding as at the end of the year 5,698 6,204
1) Consisting of Dr. Evers, Mr. Demolière, Mr. Kulartz, Mr. Müller, Mr. Tessmann (from 1 April 2010), Dr. Veit and Mr. Vetter (up to and including 10 June 2009)
2) Consisting of Dr. Evers (from 1 July 2009 as a member and Chairman), Dr. Veit and Mr. Vetter (up to and including 10 June 2009)
3) not including VAT, Group information
4) Performance-based (variable) remuneration of € 270 thousand paid to Mr. Vetter in 2010. Addition payments for previous years to other persons of € 22 thousand in 2009.
“Total remuneration” means “short-term benefits” in line with the standard; there are no “other long-term benefits”.
There are no other remuneration components offering a long-term incentive (subscription rights, other share-based payments, etc.)
for members of the Board of Management.
In the event that members of the Board of Management are unable to work as a result of accident or illness, they are entitled to
their full remuneration for the following period: Mr. Tessmann up to six months, Mr. Demolière up to one year, Dr. Evers, Mr. Kulartz and
Mr. Müller up to two years though not beyond the end of their employment contracts. Following this period, the members of the Board of
Management mentioned are entitled to a pension for occupational disability. If Mr. Müller or Mr. Tessmann resigns because of invalidity,
each will receive an invalidity pension from the following month, the amount of which is measured in accordance with the provisions for the
pension, with periods of invalidity not counting as years of service.
In the event of the contractual relationship being dissolved by LBB, which is not triggered by good cause on the part of the Board
of Management member (Article 626 of the German Civil Code), the members of the Board of Management are entitled to payment of a
pension.
Dr. Veit made use of the right granted in the contract of employment concluded with him and retired of his own volition after his
62nd birthday. The current members of the Board of Management Mr. Kulartz and Mr. Tessmann are also entitled to do this. After their
60th birthdays, the service agreements of Dr. Evers and Mr. Demolière can be terminated by these gentlemen or by LBB. The members of
the Board of Management will then receive their pensions before their 65th birthdays.

198
Consolidated financial statements Other notes
Advances and loans granted to members of executive bodies by Landesbank Berlin AG:
in € ’000 31.12.2010 31.12.2009
to members of the Board of Management of LBB 297 296
of which to members of the Board of Management of the Holding 15 11
to members of the Supervisory Board of the Holding 85 111
to members of the Supervisory Board of LBB 93 98
The net amounts include annuity loans granted at customer conditions, utilised overdraft facilities granted at employee conditions and
invoice amounts on credit card accounts.
There were no transactions such as land or property sales, services rendered or purchased, leases, loans or other transactions at
non-market conditions with persons in key positions.
Close family members of the Board of Management and the Supervisory Board have no influence on business decisions.
LBBH publishes information on share transactions by its Board of Management on its Internet site under “Investor Relations”.
It thereby satisfies the reporting requirements of Article 15a WpHG.
Information for Article 314 (1) no. 6 a) sentence 5 HGB
The members of the Board of Management received the following remuneration in the 2010 financial year:
Members of the Board of Management Annual remuneration Other remuneration 2) Total
in € ’000
Non-performance-related
remuneration
Performance-related
remuneration for
financial year 2009 1)
Dr. Johannes Evers (Holding, LBB) 850 216 45 1,111
of which non-pensionable 330
Dr. Thomas Veit (Holding, LBB) 709 228 33 970
of which non-pensionable 300
Total for members of executive bodies of the Holding 1,559 444 78 2,081
Serge Demolière (LBB) 1,014 108 57 1,179
of which non-pensionable 489
Hans Jürgen Kulartz (LBB) 651 126 45 822
of which non-pensionable 246
Martin K. Müller (LBB) 675 126 34 835
of which non-pensionable 290
Patrick Tessmann 3) 375 0 34 409
of which non-pensionable 188
Total remuneration for 2010 (LBB) 4,274 804 248 5,326
1) In March 2010, the Supervisory Board decided on the performance-based (variable) remuneration, 60 % of which was paid out and included in remuneration for 2010.
The remaining 40 % will be spread over a three-year retention period.
2) Other remuneration relates to non-cash benefits (use of company car) of € 141 thousand and the so-called employer share of net amount (assumption of tax of cash benefits by
the employer) of € 107 thousand. Drivers are also employed at normal rates. The employer’s subsidy for health and long-term care insurance still included in the previous year
was no longer included.
3) Mr. Tessmann was appointed to the Board of Management of LBB effective 1 April 2010.

The members of the Board of Management received the following remuneration in the 2009 financial year:
Members of the Board of Management Annual remuneration Other remuneration 2) Total
in € ’000
Non-performance-related
remuneration
Performance-related
remuneration for
financial year 2008 1)
Hans-Jörg Vetter (Holding, LBB) 3) 483 0 13 496
of which non-pensionable 231
Dr. Johannes Evers (Holding, LBB) 4) 425 0 22 447
of which non-pensionable 165
Dr. Thomas Veit (Holding, LBB) 709 0 33 742
of which non-pensionable 300
Total for members of executive bodies of the Holding 1,617 0 68 1,685
Serge Demolière (LBB) 1,008 0 34 1,042
of which non-pensionable 489
Dr. Johannes Evers (LBB) 5) 321 0 24 345
of which non-pensionable 123
Hans Jürgen Kulartz (LBB) 646 0 44 690
of which non-pensionable 246
Martin K. Müller (LBB) 675 0 38 713
of which non-pensionable 290
Total remuneration for 2009 (LBB) 4,267 0 208 4,475
1) No performance-based (variable) remuneration was paid for activities in the 2008 financial year.
2) Other remuneration relates to non-cash benefits (use of company car) of € 102 thousand and the so-called employer share of net amount (assumption of tax of cash benefits
by the employer) of € 103 thousand. Drivers are also employed at normal rates. Other remuneration also includes payments received by Mr. Müller in the reporting year as the
employer’s subsidy for health and long-term care insurance.
3) Mr. Vetter left the Board of Management of the Holding and LBB as a member and Chairman as at 10 June 2009.
4) For work by Dr. Evers from 1 July 2009 as a member and Chairman of the Board of Management of the Holding and LBB.
5) For work by Dr. Evers as a member of the Board of Management of LBB prior to 30 June 2009.
Information in accordance with Article 314 (1) no. 6 a) sentence 6 HGB
in € ’000
Amount recognised as an
expense or provision in 2010
Consolidated financial statements Other notes 199
Present value of pension
provisions (DBO)
Mr. Dr. Evers – 54 2,368
Mr. Dr. Veit – 452 3,330
Total for executive bodies of LBBH – 506 5,698
Mr. Demolière – 14 1,852
Mr. Kulartz – 26 2,262
Mr. Müller 89 1,135
Mr. Tessmann 147 147
Total for executive bodies of LBB – 310 11,094
The other disclosures in line with Article 314 (1) no. 6 a) sentences 6 to 8 HGB can be found in the Group management report.

200
Consolidated financial statements Other notes
Total remuneration of members of the Holding Supervisory Board for work on the Supervisory Boards of the Holding Group:
Members of the Supervisory Board Annual remuneration for the LBBH Group
in € ’000
1.1. – 31.12.
2010
1.1. – 31.12.
2009
Heinrich Haasis 81.0 81.0
Bärbel Wulff 63.8 63.8
Gregor Böhmer 1) 3) – 18.3
Dagmar Brose 1) – 6.7
Hans Jörg Duppré 15.0 15.0
Michael Dutschke 2) 15.0 8.4
Christina Förster 3) 15.0 19.6
Gerhard Grandke 2) 4) 31.5 17.7
Artur Grzesiek 33.5 33.5
Sascha Händler 3) 15.0 19.6
Gerald Herrmann 2) 4) 25.5 14.3
Jürgen Hilse 5) 6) 16.2 35.5
Claus Friedrich Holtmann 31.5 31.5
Michael Jänichen 47.5 43.1
Daniel Kasteel 3) 15.0 19.6
Thomas Mang 41.5 37.1
Astrid Maurer 1) 3) – 11.2
Frank Meysel 2) 15.0 8.4
Wolfgang Pansegrau 2) 4) 25.5 14.3
Andreas Rohde 1) 3) – 11.2
Helmut Schleweis 7) 8) 18.5 –
Peter Schneider 25.5 25.5
Friedrich Schubring-Giese 15.0 15.0
Joachim Tonndorf 1) – 11.1
Dr. Harald Vogelsang 31.5 31.5
Frank Wolf 41.5 41.5
Total 619.5 634.4
plus sales tax 98.6 98.8
Total expense 718.1 733.2
1) Member of the Supervisory Board of the Holding until 9 June 2009
2) Member of the Supervisory Board of the Holding since 9 June 2009
3) Member of the Supervisory Board of LBB until 8 June 2009
4) Member of the Supervisory Board of LBB since 8 June 2009
5) Member of the Supervisory Board of the Holding until 15 June 2010
6) Member of the Supervisory Board of LBB until 14 June 2010
7) Member of the Supervisory Board of the Holding since 15 June 2010
8) Member of the Supervisory Board of LBB since 14 June 2010

64 Number of employees
Average number of employees in the financial year by group:
2010 2009
Full-time 5,058 5,095
Part-time 1,422 1,376
Trainees 237 280
Total 6,717 6,751
65 Events after 31 December 2010
The resolution by the Extraordinary General Meeting of Berlin Hyp on 9 December 2010 to transfer the minority shareholders’ shares to
LBB in return for appropriate cash compensation (Article 327a (1) sentence 1 of the German Stock Corporation Act (AktG)) was entered in
the commercial register on 25 January 2011. As a result, LBB holds 100 % of shares in Berlin Hyp.
Financial assistance proceedings under European law are pending for WestLB AG, Düsseldorf. In compensation for the assistance
received, the Federal Republic of Germany has proposed a plan to break up WestLB and wind it down in an orderly fashion in addition to
other alternatives to the European Commission. As part of this scheme, certain of WestLB’s business activities, which are of relevance to
savings banks, are to be transferred into a newly created Verbundbank (associated bank), which will subsequently be resold in parts over a
longer period, transferred to other units or wound-up. The German savings banks and Landesbanks have already declared their willingness to
make a contribution to the establishment of the Verbundbank as part of the overall scheme and to become owners of the Verbundbank
alongside the savings bank associations in North Rhine-Westphalia. The precise details of the ownership structure of the Verbundbank have
not yet been determined. It is possible that savings banks and Landesbanks will participate in the Verbundbank via their deposit guarantee
schemes or issue guarantees in favour of it. LBB would be involved in measures of this kind as a member of the Deposit Guarantee Reserve
of the Landesbanks and Girozentralen.
66 List of investment holdings
Company, registered office
Consolidated subsidiaries (IAS 27)
Total share
held by the
Group
in %
of which
indirectly
in %
Voting rights
held by the
Group
in %
Consolidated financial statements Other notes 201
Equity 1)
in € ’000
Result 1)
in € ’000
Date of annual
financial
statements
if not
31.12.2010
BankenService GmbH Unternehmensgruppe Landesbank Berlin,
Berlin 2) 100.0 100.0 100.0 5,528 2,830
Berlin-Hannoversche Hypothekenbank Aktiengesellschaft, Berlin 2) 5) 99.7 99.7 99.7 830,903 0
Crown Court I LLC, Wilmington / Delaware 100.0 100.0 100.0 – 30,211 – 10,702
Crown Court Property London Ltd., London 5) 16) 100.0 100.0 100.0 16,000 595
GfBI Gesellschaft für Beteiligungen und Immobilien mbH, Berlin 2) 100.0 100.0 100.0 9,436 0
GfBI Immobilien Solutions GmbH, Berlin 100.0 100.0 100.0 – 925 – 997
Grundstücksgesellschaft Bad Freienwalde / Gardelegen GbR,
Berlin 76.7 76.7 76.7 – 24,512 – 1,314 31.12.2009
Grundstücksgesellschaft Lehrter Straße GbR, Berlin 5) 99.9 99.9 99.9 – 8,688 327
Landesbank Berlin AG, Berlin 2) 5) 100.0 0.0 100.0 2,861,243 0
Landesbank Berlin International S.A., Luxembourg 5) 100.0 100.0 100.0 168,984 23,813
Landesbank Berlin Investment GmbH, Berlin 2) 5) 100.0 0.0 100.0 10,660 0
LBB Finance (Ireland) plc, Dublin 100.0 100.0 100.0 1,351 10
LBB Grundstücks-Gesellschaft mbH der Landesbank Berlin AG,
Berlin 2) 5) 100.0 100.0 100.0 5,880 0
LBB-Immobilien-Service GmbH, Berlin 2) 5) 100.0 100.0 100.0 1,460 0
LBB Re Luxembourg S.A., Luxembourg 5) 100.0 100.0 100.0 3,200 0
netbank Aktiengesellschaft, Hamburg 5) 75.0 75.0 75.0 21,110 – 2,674
Versicherungsservice GmbH Unternehmensgruppe
Landesbank Berlin, Berlin 2) 5) 100.0 100.0 100.0 1,036 0

202
Consolidated financial statements Other notes
Company, registered office
Special purpose entities (SIC 12) / Special funds –
consolidated – (IAS 27 in conjunction with SIC 12)
Total share
held by the
Group
in %
of which
indirectly
in %
Voting rights
held by the
Group
in %
Equity 1)
in € ’000
Result 1)
in € ’000
RR II R-11004, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11014, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11017, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11056, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11057, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11063, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11064, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11066, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11072, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11075, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11077, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11080, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11082, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11085, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11087, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11133, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11140, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11144, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11145, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11148, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11157, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11161, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11163, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11172, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11176, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11184, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11189, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11227, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11231, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11232, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11247, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11249, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11251, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11253, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11254, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11262, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11263, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11264, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11265, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11266, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11270, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11277, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11280, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11282, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11285, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11288, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11289, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11290, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11291, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11292, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11297, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11298, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11300, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11301, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11302, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11303, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
Date of annual
financial
statements
if not
31.12.2010

Company, registered office
Total share
held by the
Group
in %
of which
indirectly
in %
Voting rights
held by the
Group
in %
Equity 1)
in € ’000
Result 1)
in € ’000
RR II R-11304, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11305, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11306, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11308, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11310, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-11804, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-817, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
RR II R-846, City of Wilmington / Delaware 4) 0.0 0.0 0.0 – –
Special purpose entities (SIC 12) / Special funds –
consolidated – (IAS 27 in conjunction with SIC 12)
Date of annual
financial
statements
if not
31.12.2010
AGI PIMCO Global Corporate Bond Fonds,
Frankfurt / Main 11a) 100.0 100.0 0.0 89,389 – 169 31.12.2009
LBB-TBG-Fonds, Berlin 11a) 100.0 100.0 0.0 99,060 3,435 30.11.2009
BG-Asset-Fonds, Berlin 11a) 100.0 100.0 0.0 20,041 551 30.9.2009
DeAM EICO Fonds, Frankfurt / Main 11a) 100.0 100.0 0.0 94,639 4,290 31.12.2009
DEKA – ABS Europe-Fonds, Frankfurt / Main 11a) 100.0 100.0 0.0 54,121 1,570 31.12.2009
GSAM Global Corporate Bond Fonds INKA, Dusseldorf 11a) 100.0 100.0 0.0 95,136 1,647 31.12.2009
LBB INKA Credit Plus, Dusseldorf 11a) 100.0 100.0 0.0 70,564 1,896 31.12.2009
LBB-nb 08-Fonds, Berlin 11a) 100.0 100.0 0.0 386,441 8,417 31.12.2009
LBB Prisma Unit Trust, Georgetown / Cayman Islands 11c) 17) 100.0 100.0 0.0 149,322 13,336 30.6.2010
UNIQA Global ABS Income Fund, Bregenz, Austria 11a) 100.0 100.0 0.0 15,326 818 31.12.2009
WAMCO INKA Global Corporate Bond Fonds, Dusseldorf 11a) 100.0 100.0 0.0 82,909 2,746 31.12.2009
Holdings in mutual funds
LBB Interest Rate Opportunity Fund, Berlin 11b) 100.0 100.0 0.0 24,868 – 122 30.9.2010
Non-consolidated subsidiaries (IAS 27)
Bankenservice AO i. L., Moscow 100.0 100.0 100.0 n / a n / a
BB-Grundstücksgesellschaft mit beschränkter Haftung, Berlin 2) 5) 100.0 94.9 100.0 51 0
Berlin Hyp Immobilien GmbH, Berlin 100.0 100.0 100.0 26 0 31.12.2009
Beteiligungsgesellschaft B & E-Maßnahmen mbH, Berlin 100.0 100.0 100.0 22 – 3 31.12.2009
B & E-Maßnahme Naumburg GmbH, Berlin 100.0 100.0 100.0 25 0 31.12.2009
B & E-Maßnahme Wustermark GmbH, Berlin 100.0 100.0 100.0 – 617 – 642 31.12.2009
egs Entwicklungsgesellschaft Südhorn mbH, Berlin 94.0 94.0 94.0 – 1,642 – 24 31.12.2009
Eurospeedway Lausitz Entwicklungs GmbH, Berlin 100.0 100.0 100.0 760 338 31.12.2009
FAKT Immobilien Management-Verwaltungs GmbH, Berlin 100.0 100.0 100.0 – 27 359 31.12.2009
FURIS Verwaltung GmbH, Pullach 100.0 100.0 100.0 13 1 31.12.2009
FURIS Verwaltung GmbH & Co. Vermietungs-KG, Pullach 100.0 100.0 100.0 23 3 31.12.2009
GfBI Beteiligungsmanagement GmbH, Berlin 100.0 100.0 100.0 100 0
Grundstücksgesellschaft Weichselstraße GbR
– STADT UND LAND-Fonds 1 –, Berlin 60.2 60.2 60.2 3,834 1 31.12.2009
Harpalus Verwaltungsgesellschaft mbH & Co. Vermietungs KG i. L.,
Munich 78.1 78.1 78.1 45 – 6 31.12.2009
HaWe Verwaltungsgesellschaft mbH, Berlin 2) 100.0 100.0 100.0 26 0 31.12.2009
HILOG Beteiligungs GmbH & Co. Mobilienleasing KG, Pöcking 92.5 92.5 92.5 87 – 48 31.12.2009
IDL Beteiligungsgesellschaft mbH, Berlin 100.0 100.0 100.0 19 0 31.12.2009
IDL Objektbeteiligungsgesellschaft mbH & Co. KG, Berlin 100.0 100.0 100.0 117 2 31.12.2009
Linden Grundstücks GmbH, Berlin (formerly DirektBankService
GmbH Unternehmensgruppe Bankgesellschaft Berlin, Berlin) 100.0 100.0 100.0 314 – 37
SDZ Ostbrandenburg GmbH, Berlin 100.0 100.0 100.0 99 16 31.12.2009
Wilkendorf Bau- und Projektentwicklungsgesellschaft mbH, Berlin 100.0 100.0 100.0 545 15 31.12.2009
Special purpose entities (SIC 12), special purpose
and publicly issued funds – non-consolidated –
(IAS 27 in conjunction with SIC 12)
Consolidated financial statements Other notes 203
Chess II Ltd. Series 37, Saint Helier / Jersey, Channel Islands 13) 0.0 0.0 0.0 0 0
PPC Holdings Ltd., Saint Helier / Jersey, Channel Islands 0.0 0.0 0.0 13 – 9 31.12.2009
Saphir Managed Futures Fund, Frankfurt / Main 14) 57.8 57.8 0.0 n / a n / a
Smaragd Managed Futures Fund, Frankfurt / Main 14) 100.0 100.0 0.0 n / a n / a

204
Consolidated financial statements Other notes
Company, registered office
Joint ventures (IAS 31) – non-valued –
Total share
held by the
Group
in %
of which
indirectly
in %
Voting rights
held by the
Group
in %
Equity 1)
in € ’000
Result 1)
in € ’000
Date of annual
financial
statements
if not
31.12.2010
BerlinOnline Stadtportalbeteiligungsgesellschaft mbH, Berlin 3) 45.0 45.0 45.0 31 1 31.12.2009
BerlinOnline Stadtportal GmbH & Co. KG, Berlin 3) 45.0 45.0 45.0 2,902 – 1,225 31.12.2009
BHS Berliner Hannoversche Software GmbH, Hanover 50.0 50.0 50.0 1,144 13 31.12.2009
CidS! Computer in die Schulen gemeinnützige Gesellschaft mbH,
Berlin 50.0 50.0 50.0 145 11 31.12.2009
GbR TOCOTAX 0.0 0.0 33.3 0 – 171 31.12.2009
Gesellschaft bürgerlichen Rechts Möllendorffstraße / Parkaue,
Berlin 50.0 50.0 50.0 – 1,149 43 31.12.2009
NORD EK Norddeutsche Einkaufskoordination der Landesbank
Berlin AG und der Norddeutsche Landesbank Girozentrale GbR,
Berlin / Hanover 0.0 0.0 50.0 328 49 31.12.2009
Associated companies (IAS 28) – valued –
LBS Norddeutsche Landesbausparkasse Berlin-Hannover,
Berlin / Hanover 5) 7) 12.0 12.0 12.0 311,058 13,600
PEB Capital B. V. in liquidation, Hilversum 5) 42.4 42.4 42.4 99 – 11
Special purpose entities (SIC 12) / special purpose and
publicly issued funds – associated (IAS 28) – valued –
Keppler-Global Alpha-LBB-INVEST, Berlin 11a) 25.5 25.5 0.0 81,081 2,148 31.3.2010
LBB Special Situations Fund, Hamburg 11b) 100.0 100.0 0.0 10,958 62 31.7.2010
LINGOHR-ALPHA-SYSTEMATIC-LBB-INVEST, Berlin 11a) 12.2 12.2 0.0 54,354 1,088 31.3.2010
Associated companies (IAS 28) – non-valued –
Apollon Immobilien Verwaltungs GmbH & Co. KG
– Vierter IBV-Immobilienfonds für Deutschland –, Berlin 47.5 47.5 47.5 32,305 2,263 31.12.2009
Apollon Immobilien Verwaltungsgesellschaft mbH, Berlin 30.0 30.0 30.0 77 5 31.12.2009
B + S Card Service GmbH, Frankfurt / Main 25.1 25.1 25.1 13,338 4,413 30.9.2010
BBB Bürgschaftsbank zu Berlin-Brandenburg GmbH, Berlin 21.8 21.8 21.8 8,488 112 31.12.2009
Gaia Immobilien Verwaltungs GmbH & Co.
Objekt Bautzener Gesundbrunnen KG, Berlin 6) 49.0 49.0 49.0 – 211 – 28 31.12.2009
Gumes Verwaltung GmbH & Co. Objekt Rostock KG, Munich 39.6 39.6 20.0 25 0 31.12.2009
Modernisierungsgesellschaft „Wohnen in Berlin-Charlottenburg,
Fritschestraße 67“ GbR, Berlin 30.9 30.9 30.9 n / a n / a
Projektgesellschaft Forum Neukölln GbR mit auf das
Gesellschaftsvermögen beschränkter Haftung, Berlin 0.0 0.0 40.0 0 0 31.12.2008
SDZ Südbayern GmbH, Schwabmünchen 15) 30.0 30.0 30.0 n / a n / a
Theseus Immobilien Management GmbH & Co. KG
– Zweiter IBV-Immobilienfonds International –, Berlin 3) 26.8 26.8 26.8 30,280 3,604 31.12.2009
WISUS Beteiligungs GmbH & Co. Zweite Vermietungs KG,
Munich 49.0 49.0 36.3 – 2,780 214
Minimum holding of 20 %
Bavaria Immobilien Projektsteuerungs GmbH & Co.
Objekt Berlin-Mitte Leipziger Straße KG, Berlin 8) 9) 100.0 100.0 100.0 – 1,841 35 31.12.2009
Gartenstadt Stahnsdorf GmbH i. I., Berlin 10) 49.0 49.0 49.0 3 – 1 31.12.2008
Gartenstadt Stahnsdorf GmbH & Co. Projektentwicklungs KG i. I.,
Berlin 10) 48.5 48.5 48.5 – 2,987 – 2,987 31.12.2009
Lausitzring GmbH & Co. KG, Klettwitz 10) 70.0 70.0 70.0 – 84,277 44 31.12.2009
Theseus Immobilien Management GmbH & Co.
Objekt Leipziger Straße KG, Berlin 8) 9) 100.0 100.0 100.0 2 – 3 31.12.2009
Wohnbau Tafelgelände Beteiligungs GmbH, Nuremberg 8) 9) 75.0 75.0 75.0 46 1 30.9.2009
Wohnbau Tafelgelände GmbH & Co. KG, Nuremberg 8) 9) 75.0 75.0 75.0 499 – 262 30.9.2009

Company, registered office
Special purpose entities (SIC 12) / special purpose and
publicly offered funds with minimum holding of 20 %
Total share
held by the
Group
in %
of which
indirectly
in %
Voting rights
held by the
Group
in %
Equity 1)
in € ’000
Result 1)
in € ’000
Date of annual
financial
statements
if not
31.12.2010
ACATIS Modul Colleg.Fds-Nr. 1, Luxembourg 11a) 12) 27.6 27.6 0.0 4,139 – 20 31.12.2009
Jade Managed Futures Fund, Frankfurt / Main 12) 14) 37.2 37.2 0.0 n / a n / a
Opal Managed Futures Fund, Frankfurt / Main 12) 14) 40.7 40.7 0.0 n / a n / a
Rubin Managed Futures Fund, Frankfurt / Main 12) 14) 38.3 38.3 0.0 n / a n / a
Magna Africa Fund, London 11a) 12) 39.3 39.3 0.0 36,189 14,194 31.12.2009
OP Extra Bond Euro – hedged, Cologne 11a) 12) 24.9 24.9 0.0 253,335 11,026 31.12.2009
1) Financial statement data in accordance with the German Commercial Code unless otherwise stated
2) A control and / or profit and loss transfer agreement has been entered into with this company.
3) Held for sale in accordance with IFRS 5
4) Individual tranches of the tender option programme of Crown Court I LLC; TOB total in equity: € – 26,585 thousand; net profit / loss for the period: € 21,012 thousand
5) Figures from the annual financial statements prepared as at 31.12.2010
6) Figures from annual financial statements/shareholdings of parent company (Gesellschaft für Beteiligungen und Immobilien GmbH)
7) Classified as an associate due to significant influence in the form of representation on governing bodies or participation in determining financial and operating policies (IAS 28.7)
8) Not a subsidiary due to lack of control (protected under detailed agreement)
9) Not an associate due to lack of significant influence (venture capital, no constructive influence rebuttal of IAS 28.7) or through non-consolidated subsidiary
10) Not classified as a subsidiary or associated company as insolvency administrators have been appointed
11) Equity is the fund volume; result (net income for the year) is net result from income and expenses.
11a) Equity is the fund volume; result (net income for the year) is the ordinary net income.
11b) Equity is the fund volume.
11c) Equity is the fund volume, translated at rate as at 30.6.2010.
12) Publicly offered fund; the issuing company is not part of the Group and the Group does not exercise control or a material influence over it
13) Synthetic CDS structure, there are no annual financial statements.
14) Fund launched in 2010, no annual financial statements as yet.
15) Company founded in 2010, no annual financial statements as yet.
Exchange rates
16) € 1 = GBP 0.8607 (as at 31.12.2010)
17) € 1 = USD 1.2280 (as at 30.06.2010)
List of companies with control and / or profit transfer agreements with Landesbank Berlin Holding AG
Company
Parent company
Result
before profit
transfer
in € ’000
Landesbank Berlin AG Landesbank Berlin Holding AG 235,152
Landesbank Berlin Investment GmbH Landesbank Berlin Holding AG 14,170
67 Corporate governance
Consolidated financial statements Other notes 205
The declarations of conformity from the Board of Management and the Supervisory Board required in accordance with Article 161
of the German Stock Corporation Act relating to the German Corporate Governance Code were, and will continue to be, published
by Landesbank Berlin Holding AG and Berlin-Hannoversche Hypothekenbank AG on their respective websites.
Date of annual
financial
statements
if not
31.12.2010

206
Auditors’ report
Auditors’ report
We audited the consolidated financial statements – consisting of the statement of financial position, the statement of comprehensive income,
statement of changes in equity, the statement of cash flows and the notes to the consolidated financial statements – and the Group management
report prepared by Landesbank Berlin Holding AG, Berlin, for the financial year from 1 January to 31 December 2010. The preparation
of the consolidated financial statements and the Group management report in accordance with IFRS as adopted by the EU and the supplementary
provisions of Article 315a (1) of the German Commercial Code is the responsibility of the Company’s Board of Management. Our
responsibility is to express an opinion on the consolidated financial statements and the Group management report based on our audit.
We conducted our audit of the consolidated financial statements in accordance with Article 317 of the German Commercial Code
and the generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those
standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial
position and results of operations in the consolidated financial statements prepared in accordance with the applicable accounting standards
and in the Group management report are detected with reasonable assurance. Knowledge of the business activities and the economic
and legal environment of the Group, as well as evaluations of possible misstatements, are taken into account in the determination of audit
procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the consolidated
financial statements and the Group management report are examined primarily on a test basis within the framework of the audit.
The audit includes assessing the annual financial statements of those entities included in consolidation, the definition of the entities to be
included in consolidation and the accounting and consolidation principles used and significant estimates made by the Board of Management,
as well as evaluating the overall presentation of the consolidated financial statements and the Group management report. We believe that
our audit provides a reasonable basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the consolidated financial statements comply with IFRS as adopted by the EU and the
supplementary provisions of Article 315a (1) of the German Commercial Code and give a true and fair view of the net assets, financial
position and results of operations of the Group in accordance with these principles. On the whole, the Group management report, which is
consistent with the consolidated financial statements, provides a suitable understanding of the Group’s position and suitably presents the
opportunities and risks of future development.
Berlin, 2 March 2011
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
Mark Maternus ppa. Mario Bauschke
Auditor Auditor

Responsibility statement
To the best of our knowledge and in accordance with the applicable reporting principles, the consolidated financial statements give a true
and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the management report of the Group includes a
fair review of the development and performance of the business and the position of the Group, together with a description of the principal
opportunities and risks associated with the expected development of the Group.
Berlin, 2 March 2011
The Board of Management
Dr. Johannes Evers Martin K. Müller
Responsibility statement 207

208
Other Information
Other Information
Report of the Supervisory Board of Landesbank Berlin Holding AG 209
Executive bodies of Landesbank Berlin Holding AG 212
Corporate Governance Report 214
Important addresses 218
Major investments 221
Abbreviations 222

Report of the Supervisory Board of Landesbank Berlin Holding AG
In the 2010 financial year, the Supervisory Board kept itself well informed on current events and significant transactions in five plenary
sessions and nine committee meetings, three of which were conference calls. It reviewed the situation and business performance of the
Bank regularly, comprehensively and with appropriate urgency both in writing and verbally, and continuously monitored and satisfied itself
that Landesbank Berlin Holding AG (Holding) and its subsidiaries were being managed properly by the Board of Management.
The Supervisory Board was informed by the Board of Management about the intended business policy and other fundamental
issues of corporate planning, including in particular financial, investment and personnel planning, the risk situation and compliance. It then
advised the Board of Management on all aspects associated with these matters and gave recommendations where appropriate. Current
issues were discussed by the Chairman of the Board of Management and the Chairman of the Supervisory Board.
In view of the largely identical topics, the Supervisory Board members of Holding and Landesbank Berlin AG (LBB) both met regularly
in joint meetings – as did the two Accounting, Personnel and Strategy Committees.
Focus of the work of the Supervisory Board
Other Information 209
The subjects of its meetings were the information provided by the Board of Management on the current business performance, the earnings
of the strategic divisions and the current position of the Holding and the Group.
In the meeting on 9 February 2010, the Board of Management reported on the initial indications for business performance as at
31 December 2009 and discussed the progress of the past financial year with the Supervisory Board. The Supervisory Board also discussed
other content in the context of the implementation of the Gesetz zur Angemessenheit der Vorstandsvergütung (VorstAG – German Act on
the Appropriateness of Management Remuneration), including in particular the structure of variable remuneration, the deductible in D & O
insurance and the implementation of regulatory requirements of the remuneration systems. In addition, the Supervisory Board resolved the
annual declaration of conformity with the GCGC.
In preparation for the accounts meeting on 26 March 2010, the Supervisory Board was provided with the reports of the auditor,
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, on 10 March 2010. This accounts meeting included the
report of the Board of Management and the auditor on the 2009 financial year, the discussion and review of the annual and consolidated
financial statements and the management reports of the Holding and the Group as at 31 December 2009, including the proposal for the
appropriation of the 2009 unappropriated surplus. Other topics at this meeting were the resolution on the report of the Supervisory Board,
the invitation, agenda and resolution proposals for the Annual General Meeting on 15 June 2010 including the proposal for the election
of the auditor. In connection with its resolution on the remuneration report for 2009, the Supervisory Board conducted its regular review of
the remuneration system. The Supervisory Board also reviewed the efficiency of its work on the basis of a checklist. The Supervisory Board
appointed Dr. Johannes Evers as the Labour Director in accordance with section 33 of the Mitbestimmungsgesetz (MitbestG – German
Codetermination Act).
In the meeting on 15 June 2010 before the start of the Annual General Meeting, the Supervisory Board heard the detailed report of
the Board of Management on the business performance in the first four months and was informed of the foundation concept of LBB and the
formation of a joint company with Deutsche Leasing AG (S-Kreditpartner GmbH) to bundle the activities in car and consumer finance loans.
On 10 September 2010, the Supervisory Board discussed with the Board of Management the effects of the implementation of the
new recommendations on the equity requirements for banks (Basel III) at LBB. Furthermore, the Supervisory Board discussed a precautionary
resolution on loans to members of executive bodies and determined the main areas of the audit for the 2010 financial year. It dealt with the
matter of the successor to Dr. Veit, whose mandate was ending at his request as at 31 December 2010, and appointed Mr. Martin K. Müller
as a member of the Board of Management of Landesbank Berlin Holding AG. It was also informed of the Berliner Sparkasse project “Ways
to Customers” and the creation of a Remuneration Committee at LBB. A further key aspect of the work of the Supervisory Board was the
discussion and approval of the purchase of the share held in Berlin Hannoversche Hypothekenbank (Berlin Hyp) by Nord / LB, the conclusion
of a profit transfer agreement and the assumption of the remaining non-controlling interests in Berlin Hyp.
In the last meeting of the Supervisory Board in the reporting year on 19 November 2010, the Board of Management reported on
the events of the third quarter and current business performance. The Supervisory Board also heard a report on the status of the OSPlus
migration and the service offering of LBB for other savings banks and discussed medium-term planning for 2011 – 2015. The Supervisory
Board issued a recommendation for the Annual General Meeting on the appointment of the auditor from the 2011 financial year and duly
noted the risk strategy.
Outside the Supervisory Board meetings, five resolutions were passed by way of circulation procedures during the 2010 financial year.
All members of the Supervisory Board took part in at least half of the meetings of the Supervisory Board in 2010.

210 Other Information Report of the Supervisory Board of Landesbank Berlin Holding AG
Committees of the Supervisory Board
In the 2010 financial year, the work of the Supervisory Board was supported by the Audit, Personnel and Strategy Committee (APS Committee)
formed by members of the Supervisory Board. The APS Committee met at nine meetings in the year under review to prepare resolutions
for the plenary session; three of these meetings were held as conference calls. The topics of these conference calls included the discussion
of the respective interim reports as at 31 March 2010, 30 June 2010 and 30 September 2010 with the Board of Management prior to their
publication. The APS Committee focused principally on questions of accounting, risk management and personnel matters relating to the
Board of Management. It also intensively examined strategic issues and transactions of particular significance.
The Supervisory Board received regular and comprehensive reports on the work of the APS Committee in its plenary sessions. All
members of the APS Committee took part in more than half of the meetings in the year under review.
The Mediation Committee formed in accordance with Article 27 (3) MitbestG of 1976 did not meet in the 2010 financial year.
Corporate governance
The Supervisory Board intensively discussed the implementation of the provisions of the German Corporate Governance Code (GCGC).
In spring 2010, the Supervisory Board reviewed the efficiency of its work. In cooperation with the Board of Management, the findings of this
efficiency review form the basis for the further optimisation of the work of the Supervisory Board. In February 2011, the Board of Management
and the Supervisory Board issued the declaration of conformity with the German Corporate Governance Code (GCGC) as amended
26 May 2010. Details of this can be found in the corporate governance report. As the Supervisory Boards of Holding and LBB are largely made
up of the same people, a joint report is issued. Owing to a different mandate held by one member of the Supervisory Board, this member
did not participate in the resolution on the investment matter “Berlin Hyp AG – measures for the ongoing development of the shareholder
structure”, which involved the approval of the acquisition of the shares in Berlin Hyp held by Nord / LB. There were no other potential conflicts
of interest in the Supervisory Board or the Board of Management in the year under review.
The declaration of conformity of Landesbank Berlin Holding AG can be accessed on the Company’s homepage at www.lbb-holding.de.
Further information on corporate governance at the Company and a detailed report on the amount and structure of the remuneration of the
Supervisory Board and the Board of Management can be found on pages 214 ff. and 39 ff. of this Annual Report.
Personnel changes in the Board of Management
On 10 September 2010, the Supervisory Board appointed Mr. Martin K. Müller effective 1 January 2011 as the successor to Dr. Thomas Veit,
who retired on 31 December 2010. The Supervisory Board thanks Dr. Veit for his many years of commendable work as a member of the
Board of Management of the Holding.
Personnel changes in the Supervisory Board
As at the end of the Annual General Meeting of Landesbank Berlin Holding AG on 15 June 2010, Mr. Jürgen Hilse resigned his mandate on
the Supervisory Board of Landesbank Berlin Holding AG. The Annual General Meeting elected Mr. Helmut Schleweis as Mr. Hilse’s successor
on 15 June 2010.
The Supervisory Board thanks Mr. Hilse for his commitment and constructive cooperation.
In accordance with 5.4.2 of the German Corporate Governance Code, the Supervisory Board checked and confirmed that it comprises, in
its opinion, of a sufficient number of independent members and that the legal requirements under Article 100 (5) of the Aktiengesetz (AktG –
German Stock Corporation Act) regarding expert knowledge in the areas of accounting and auditing are satisfied.

Report by the Board of Management on relations with affiliated companies
The Supervisory Board examined the Board of Management’s report on relations with affiliated companies in accordance with Article 312 AktG
for the 2010 financial year. Neither this examination nor the audit performed by the auditors gave rise to any objections.
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft issued Holding with the following audit opinion for the
period from 1 January to 31 December 2010:
“On completion of our audit in accordance with professional standards, we confirm that
1. the factual statements made in the report are correct,
2. the Company’s compensation with respect to the transactions listed in the report was not inappropriately high.”
On completion of its examination, the Supervisory Board raised no objections to the closing statement by the Board of Management in its
report on relations with associated companies in accordance with Article 312 AktG.
Annual financial statements 2010
These annual financial statements of the Holding with the management report for the 2010 financial year and the consolidated financial
statements of the Holding with the Group management report, have been audited by the auditor appointed by the Annual General Meeting,
PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft, Frankfurt/Main, Berlin branch, taking into consideration the
focus of the audit determined by the Supervisory Board, and issued with an unqualified audit opinion. The Supervisory Board approved the
auditor’s certificate issued in each case.
During each audit, the Chairman of the Supervisory Board was informed of the content and status of the audit by the auditor.
The annual financial statements of the Holding were prepared in accordance with the provisions of the Handelsgesetzbuch (HGB – German
Commercial Code), while the consolidated financial statements of the Holding were prepared in accordance with International Financial
Reporting Standards (IFRS). Both the annual financial statements and the consolidated financial statements together with the management
report and the Group management report and the auditor’s report for each report were presented to the APS Committee and the Supervisory
Board for inspection in good time before the respective accounts meetings of these bodies.
The accounts meetings of the full Supervisory Board and the APS Committee were attended by the auditors responsible for signing
the annual and consolidated financial statements. The auditor reported on the key results of its audit and that there were no major weaknesses
in the internal control system or the risk management system. In the joint discussion, it responded in detail to questions from members
of the committees. The Supervisory Board is confident that the auditor has no conflicts of interest in accordance with the GCGC 7.2.1 in
terms of an independent audit.
There were no objections to the audit results. The Supervisory Board approved the annual financial statements of the Holding
and of the Group prepared by the Board of Management as at 31 December 2010 in its meeting on 25 March 2011. The annual financial
statements of the Holding are thereby adopted in accordance with Article 172 (1) sentence 1 AktG. The Supervisory Board approved
the proposal by the Board of Management to use the reported unappropriated surplus of the Company for the 2010 financial year
of € 140,807,616.52 as follows: distribution of a dividend of € 0.14 per eligible share, totalling € 139,905,901.80, and profits brought
forward in the amount of € 901,714.72.
The Supervisory Board would like to thank the members of the Board of Management and all the employees of the Company for
their achievements in another difficult year for the entire financial sector in the 2010 financial year.
Berlin, March 2011
The Supervisory Board
Heinrich Haasis
Chairman
Other Information Report of the Supervisory Board of Landesbank Berlin Holding AG
211

212
Other Information
Executive bodies of Landesbank Berlin Holding AG
Board of Management
Dr. Johannes Evers
Chairman
Martin K. Müller
from 1 January 2011
Dr. Thomas Veit
until 31 December 2010
Supervisory Board
Heinrich Haasis
Chairman
President of the German Savings Banks
and Giro Association (DSGV)
Bärbel Wulff *
Deputy Chairwoman
Deputy Chair of the Works Council
of Landesbank Berlin AG
Hans Jörg Duppré
President of the Deutscher Landkreistag
(German County Association)
Michael Dutschke *
Member of the Works Council
of Landesbank Berlin AG
Consultant on Information Technology
at Landesbank Berlin AG
Christina Förster *
Financial Services Secretary,
ver.di Berlin-Brandenburg region
Gerhard Grandke
Managing President of the
German Savings Banks and Giro
Association of Hesse-Thuringia
Artur Grzesiek
Chairman of the Board of Management
of Sparkasse KölnBonn
Sascha Händler *
Member of the Works Council
of Landesbank Berlin AG,
Specialist / Team Coordinator for International
Business at Landesbank Berlin AG
Gerald Herrmann *
ver.di German Specialist Team Leader
for Savings Banks / Bundesbank,
German Federal Administration, Berlin
Jürgen Hilse
until 15 June 2010
Former Chairman of the Management
Board of Kreissparkasse Göppingen
Claus Friedrich Holtmann
Managing President of the
East German Savings Bank Association
Michael Jänichen *
Divisional Manager of Regional Corporate
Banking at Landesbank Berlin AG
Daniel Kasteel *
Member of the Works Council
of Landesbank Berlin AG,
Employee in Project Management
in the Information Technology division
at Landesbank Berlin AG
Thomas Mang
President of the Savings Bank Association
of Lower Saxony

Frank Meysel *
Member of the Works Council
of Landesbank Berlin AG,
Compliance employee
at Landesbank Berlin AG
Wolfgang Pansegrau *
Deputy Chair of the Works Council
of Landesbank Berlin AG
Helmut Schleweis
from 15 June 2010
Chairman of the Board of Management
of Sparkasse Heidelberg
Peter Schneider
President of the Savings Bank Association
of Baden-Württemberg
Friedrich Schubring-Giese
Chairman of the Management Board
of Versicherungskammer Bayern
Dr. Harald Vogelsang
Chairman of the Management Board
of HASPA Finanzholding
and Hamburger Sparkasse AG
Frank Wolf *
Head of Financial Services Department
of ver.di, Berlin-Brandenburg region
* Employee representatives
Committees of the Supervisory Board
Audit, Personnel and
Strategy Committee
Heinrich Haasis
Chairman
Bärbel Wulff
Deputy Chairwoman
Jürgen Hilse
until 15 June 2010
Michael Jänichen
Thomas Mang
Helmut Schleweis
from 15 July 2010
Frank Wolf
Other Information Executive bodies of Landesbank Berlin Holding AG
Mediation Committee
Christina Förster
Heinrich Haasis
Peter Schneider
Bärbel Wulff
213

214
Other Information
Corporate Governance Report
The Board of Management and the Supervisory Board attach great importance to clear and efficient rules for managing and monitoring the
Company and its subsidiaries. The recommendations of the German Corporate Governance Code (GCGC) are understood as guidelines for
good corporate governance. The Supervisory Board and the Board of Management act in the knowledge that sound corporate governance
is in the interests of the capital markets and constitutes an important basis for the success of Group companies and therefore also the
employees. For the Company, compliance with the corporate governance guidelines is also an important factor in strengthening confidence
among the general public.
Irrespective of their legal form, the Group companies align themselves to the recommendations of the German Corporate Governance
Code (GCGC) to the extent that its principles are applicable and significant to the implementation of a Group-wide model.
In the interests of acting in a uniform manner, the non-listed Landesbank Berlin AG (LBB) has also resolved to apply the corporate
governance principles voluntarily. This is therefore the joint corporate governance report of Landesbank Berlin Holding AG (the Holding)
and LBB. Berlin-Hannoversche Hypothekenbank AG describes its principles in its own corporate governance report, including its declaration
of conformity.
The Board of Management
The Boards of Management of the Holding and LBB are committed to the principles of sound, responsible, efficient corporate governance
and control based on sustained value-added. They manage their respective companies under their own responsibility in accordance with
statutory provisions, articles of associations and internal regulations as well as internal directives and work towards compliance with these
by the Group companies. The Boards of Management of the Holding and LBB ensure appropriate risk management and risk controlling in
the Group. They develop the strategic focus of the respective company, coordinate this with their Supervisory Board and ensure its implementation.
In appointing management functions, the companies strive for diversity and, in particular, the appropriate representation of women.
For many years, LBB has been committed to promoting equal opportunities for employees and to the compatibility of career and family. In
areas in which women are underrepresented, they should be given preferential consideration for vacancies when candidates are equally
qualified. Equal opportunities exist when the natural talent, potential and abilities of both sexes are recognised and promoted equally. Further
information on the promotion of equal opportunities for male and female employees and the compatibility of career and family has been
published with the declaration on corporate governance and can be found at www.lbb-holding.de/corporate-governance.
The Boards of Management of the Holding and LBB each inform their Supervisory Board promptly and comprehensively of the
business performance of their company, its planning, risk situation, risk management and compliance and, where applicable, deviations
in business performance from the original planning. Neither the Board of Management of the Holding nor LBB was subject to conflicts
of interest while carrying out their duties.
A list of the members of the Boards of Management of the Holding and LBB and their individual responsibilities can be found in the
respective management reports.
The Supervisory Board
The Supervisory Board of the Holding has 20 members. In accordance with the provisions of the German Codetermination Act, it is composed
of ten shareholder members and ten employee members. The Supervisory Board of LBB has 16 members. Its composition is also
in accordance with the provisions of the German Codetermination Act. It is made up of eight shareholder members and eight employee
members. The Supervisory Boards of the Holding and LBB are largely made up of the same people.
The composition of the Supervisory Board bodies should, in the opinion of the Supervisory Board members, satisfy the principles
of diversity. The shareholder representatives on the Supervisory Board are elected by the Annual General Meeting. The employees elect their
own representatives in line with the regulations of the German Codetermination Act. The Supervisory Board cannot influence the selection
of Supervisory Board candidates by the employees.

In accordance with the recommendation of 5.4.1 GCGC, the Supervisory Board has resolved the specific objectives for its composition:
The Supervisory Board should be composed in such a way to ensure that the Supervisory Board is qualified to monitor and advise the
Board of Management. The candidates proposed for election to the Supervisory Board should be able, given their knowledge, abilities and
professional experience, to perform the duties of a member of a supervisory board in a banking group with retail and corporate banking
business focusing on the Berlin-Brandenburg region and national capital market and real estate financing business.
Given the focus of activities within Germany and the particular focus on the Berlin-Brandenburg region, more stringent requirements of
the international experience of Supervisory Board members are not essential.
In particular, the Supervisory Board should ensure an appropriate degree of female representation in its election proposals. When examining
potential male and female candidates for new positions on the Supervisory Board or to fill Supervisory Board positions that become
vacant, qualified women should be included in the selection process and considered appropriately in election proposals. There are currently
two women in the Supervisory Board of the Holding and also two women in the Supervisory Board of LBB. The Supervisory Board will
endeavour to at least maintain this number at the next Supervisory Board elections in 2014 or to increase it if possible.
Members of the Supervisory Board should not normally be older than 68 at the time of their election.
Other Information Corporate Governance Report
The body has a sufficient number of independent members with no business or personal ties to the Company or its Board of Management.
Furthermore, the Rules of Procedure for the Supervisory Board stipulate that the members of the Supervisory Board cannot be
permitted to pursue any interests at odds with those of the Company and its Group companies.
The members of both Supervisory Boards are listed by name in the respective notes to the annual and consolidated financial statements
of LBB and the Holding.
The Supervisory Boards of the Holding and LBB advise and monitor their respective Board of Management in its management of
the company and cooperate closely with it in an environment of trust.
The Supervisory Boards have defined material transactions that the Board of Management may only perform with the approval of
the Supervisory Board. Furthermore, they have established rules that serve to prevent conflicts of interest. The Chairman of the Board of
Management constantly exchanges information with the Chairman of the Supervisory Board. In both Supervisory Boards, committees have
been formed to increase the efficiency of the Supervisory Board’s work and to deal with complex matters. In addition to the respective
Mediation Committee and the Accounting, Personnel and Strategy Committee, the Supervisory Board of LBB has also formed a Credit
Committee.
The work of the Supervisory Boards and their committees is governed in each case by the Rules of Procedure of these bodies.
The respective Chairmen inform all Supervisory Board members about the ongoing work of the committees in the following plenary meeting.
The responsibilities of the individual committees and the key topics discussed by the committees and in the Supervisory Board in the 2010
financial year are presented in detail in the report of the Supervisory Board of the Holding or LBB respectively. The report of the Supervisory
Board of the Holding is included in the Annual Report. As in previous years, neither of the two Supervisory Boards was subject to conflicts
of interest in the performance of their duties.
The Supervisory Board of the listed Holding undertook an efficiency review in the past year, as did the Supervisory Board of LBB
on a voluntary basis. These reviews were carried out using a detailed checklist which was assessed individually by each Supervisory Board
member. In the analysis that followed, both Supervisory Boards rated their work as efficient. In addition to organisational optimisation activities,
communications with the Board of Management were intensified and the number of regular meetings was increased. The existing proposals
for improvement were conveyed to the Board of Management with a request that these be taken into account when working together with
the Supervisory Board in future.
215

216 Other Information Corporate Governance Report
Shareholders and the Annual General Meeting
The shareholders of the listed Holding exercise their rights at the Annual General Meeting. Each share carries the same voting right. The
Annual General Meeting decides on the tasks assigned to it by law, which include the appropriation of net profit, the approval of the actions
of the Board of Management and Supervisory Board, the appointment of an auditor, the election of Supervisory Board members, amendments
to the Articles of Association and capital measures. The Annual General Meeting is chaired by the Chairman of the Supervisory Board.
To make it easier for the shareholders to exercise their rights in person, the necessary documents are published on the Internet after the
meeting is convened. The shareholders have the option of authorising a proxy to vote on their behalf as instructed.
Transparency
The members of the Board of Management and the Supervisory Board of the Holding did not carry out any reportable transactions in shares
of the Holding in the 2010 financial year. The members of the executive bodies of LBB who do not perform management roles in the Holding
also did not carry out any transactions in shares of the Holding in the 2010 financial year. No other shares of the Company or related financial
instruments that must also be reported under 6.6 of the GCGC were held by the Board of Management or Supervisory Board members of
the Holding or LBB in the reporting year.
Remuneration report
The remuneration system for the Board of Management and the Supervisory Board is presented in a separate remuneration report. The compensation
of the Board of Management and Supervisory Board members is also presented individually and the implementation of the regulatory
requirements of remuneration systems for banks has been reported on. The remuneration report also includes information on the
D & O insurance policy (directors and officers liability insurance) in place for the members of the Board of Management and the Supervisory
Board of the Group companies. To emphasise the responsibility of the individual body members to the respective company and the shareholders,
an appropriate deductible was agreed in each case.
The remuneration report and the presentation of the remuneration system can be found in the respective management reports. The
personalised information on the remuneration of the members of the Board of Management and benefits in the event of their duties on the
Board of Management being terminated under normal circumstances and on the remuneration of the members of the Supervisory Board
can be found in the respective notes to the annual and consolidated financial statements of LBB and the Holding. The Group management
report and the notes to the consolidated financial statements of the Holding are a component of this Annual Report.
Accounting
The consolidated financial statements for the Holding and LBB for the 2010 financial year were prepared in accordance with International
Accounting Standards (IAS) / International Financial Reporting Standards (IFRS). The single-entity financial statements of the Holding and of
LBB are prepared according to the provisions of the German Commercial Code.
The annual and consolidated financial statements each contain a detailed risk report that provides information on the risk situation
and risk controlling of the companies and the Group. For the consolidated financial statements of the Holding, this can be found in the
Group management report.
Financial disclosure
Shareholders and other interested parties are kept informed of the business and earnings performance of the Holding. In addition to the
annual financial statements, interim reports are published in the form of semi-annual and quarterly financial reports. All company news
that could affect the share price is published in ad hoc disclosures. The Internet is predominantly used in order to ensure that shareholders,
shareholder representatives, analysts and the media receive information – including key financial dates – in a timely manner and at the
same time. The annual and interim reports of the Holding and of LBB as well as other important information can be found in the “Investor
Relations” section here.
Recommendations of the German Corporate Governance Code
In line with the amendments to the German Corporate Governance Code as at 26 May 2010, the Board of Management and Supervisory
Board of the Holding revised and submitted the declaration of conformity in February 2011 as follows.

Declaration of conformity of the Board of Management and Supervisory Board in accordance with Article 161 AktG
1 Landesbank Berlin Holding AG complies with all the recommendations of the Government Commission on the German Corporate
Governance Code as amended 26 May 2010, announced by the Federal Ministry of Justice on 2 July 2010 in the official section of the
electronic Bundesanzeiger (Federal Gazette) barring the exceptions listed under item 2.
2 (a) The D & O insurance policy does not stipulate a deductible for the members of the Supervisory Board equivalent to the legal
deductible for members of the Board of Management of at least 10 % of losses up to a minimum of one and a half times the fixed
annual compensation (3.8 of the GCGC).
The deductible agreed for the members of the Supervisory Board under the D & O insurance policy in the amount of half of the
fixed annual compensation has proved its worth and should therefore not be changed. The existing deductible fulfils the purpose
of the regulation and is considered appropriate for carrying out the duties of the Supervisory Board conscientiously and in line
with the requirements, particularly in terms of monitoring the management activities of the Board of Management such that no
inappropriate risks to the company are entered into. No further function influencing behaviour is attributed to an increase in the
deductible either. It is therefore neither necessary nor appropriate.
(b) When Board of Management contracts are concluded, a compensation cap is not included in the content of every contract
requiring that, if the Board of Management duties are terminated early without due reason, settlement payments are limited to the
amount of two years’ compensation including additional payments (4.2.3 of the GCGC).
If compensation caps are agreed generally, it is no longer possible to take into account individual circumstances when concluding
or extending contracts. As a result, a decision should therefore be made in each individual case on whether a compensation cap
should be agreed.
(c) The Supervisory Board does not form a Nomination Committee, which proposes suitable candidates for election to the Annual
General Meeting (5.3.3 of the GCGC).
At present, the Supervisory Board does not consider it necessary to form a Nomination Committee made up exclusively of
shareholder representatives to propose suitable candidates to the Supervisory Board for election by the Annual General Meeting,
as a result of the composition of the Supervisory Board on the shareholder side. The shareholder representatives handle topics
recommended by the GCGC for the Nomination Committee jointly. This ensures that the Supervisory Board is able to fulfil its duty
to select new Supervisory Board members without setting up a separate committee.
(d) The members of the Supervisory Board do not receive any performance-related remuneration (5.4.6 of the GCGC).
The Supervisory Board has decided to waive the dividend-based portion of the Supervisory Board remuneration because it does
not consider the level of the dividend to be a benchmark for the quality of responsible Supervisory Board work. It does not therefore
seem appropriate for remuneration to be based on this. The additional remuneration components for work in committees
and acting as chair or deputy chair of the Supervisory Boards represent an appropriate settlement for additional work. Additional
performance-related remuneration for responsible Supervisory Board work is therefore not considered productive.
3 Since the last declaration of conformity was issued in February 2010, Landesbank Berlin Holding AG has complied with all the recommendations
of the Government Commission on the German Corporate Governance Code as amended 18 June 2009, announced
by the Federal Ministry of Justice on 5 August 2009 in the official section of the electronic Bundesanzeiger (Federal Gazette) barring
the exceptions listed under item 2.
Berlin, February 2011
The Board of Management and the Supervisory Board
of Landesbank Berlin Holding AG
Other Information Corporate Governance Report
217

218
Other Information
Important addresses
Landesbank Berlin Holding AG
Alexanderplatz 2
D-10178 Berlin
Telephone: + 49 30 86 95 00
Fax: + 49 30 86 95 09
www.lbb-holding.de
Landesbank Berlin AG
Alexanderplatz 2
D-10178 Berlin
Telephone: + 49 30 86 98 01
Fax: + 49 30 86 98 30 74
www.lbb.de
London branch
LBB Landesbank Berlin London Branch
1 Crown Court, 66 Cheapside
GB-London EC2V 6 LR
Telephone: + 44 20 75 72 62 00
Fax: + 44 20 75 72 62 99
Luxembourg branch
LBB Landesbank Berlin
30, Boulevard Royal
L-2449 Luxembourg
Telephone: + 35 24 68 93 90
Fax: + 35 24 68 93 92 019
Landesbank Berlin Investment GmbH
Kurfürstendamm 201
D-10719 Berlin
Telephone: + 49 30 24 56 45 00
Fax: + 49 30 24 56 45 45
www.lbb-invest.de
Berliner Sparkasse
Branch of Landesbank Berlin AG
Alexanderplatz 2
D-10178 Berlin
Telephone: + 49 30 86 98 01
Fax: + 49 30 86 98 30 74
www.berliner-sparkasse.de
A current list of sales locations can
be found on the Internet at
www.berliner-sparkasse.de/Standorte.

Retail Banking
Private Banking Bundesallee 171 D-10715 Berlin + 49 30 86 98 40 70
Sales division south-west
Charlottenburg-Wilmersdorf, Mitte,
Steglitz-Zehlendorf
Retail Banking
Investments Berliner Strasse 40 – 41 D-10715 Berlin + 49 30 86 97 47 624
Sales division south-east
Neukölln, Tempelhof-Schöneberg,
Treptow-Köpenick
Retail Banking
Investments Berliner Strasse 40 – 41 D-10715 Berlin + 49 30 86 97 47 646
Sales division east
Friedrichshain-Kreuzberg, Lichtenberg,
Marzahn-Hellersdorf
Retail Banking
Investments Frankfurter Allee 147 D-10365 Berlin
Sales division north
Pankow, Reinickendorf, Spandau
+ 49 30 86 97 42 690
+ 49 30 86 97 42 691
Retail Banking
Investments Scharnweberstrasse 14 D-13405 Berlin + 49 30 86 97 47 861
Sales division Real Estate Centres Badensche Strasse 23 D-10715 Berlin + 49 30 86 98 40 51
Regional Corporate Banking
Head Regional Corporate Banking division Badensche Strasse 23 D-10715 Berlin + 49 30 86 98 43 89
North Regional Corporate Banking division Badensche Strasse 23 D-10715 Berlin + 49 30 86 97 37 777
South Regional Corporate
Banking division / Brandenburg division
Central Berlin Regional Corporate
Banking division
Badensche Strasse 23
D-10715 Berlin
Badensche Strasse 23 D-10715 Berlin
Other Information Important addresses
+ 49 30 86 97 47 671
+ 49 30 86 97 47 683
+ 49 30 86 97 46 586
Regional Corporate Banking Centre division Badensche Strasse 23 D-10715 Berlin + 49 30 86 98 30 23
BusinessLine division Brunnenstrasse 111 D-13355 Berlin + 49 30 24 55 50 18
219

220 Other Information Important addresses
Real Estate Financing
Domestic Corneliusstrasse 7 D-10787 Berlin + 49 30 25 99 57 90
Berlin / East region Corneliusstrasse 7 D-10787 Berlin + 49 30 25 99 55 90
Housing Companies Corneliusstrasse 7 D-10787 Berlin + 49 30 25 99 55 86
Dusseldorf office Königsallee 60 D-40212 Dusseldorf + 49 21 18 39 22 01
Frankfurt / Main office Bockenheimer Anlage 2 D-60322 Frankfurt / Main + 49 69 15 06 611
Hamburg office Neuer Wall 19 D-20354 Hamburg + 49 40 28 66 58 921
Munich office Perusastrasse 7 D-80333 Munich + 49 89 29 19 49 10
Central Support, Germany Corneliusstrasse 7 D-10787 Berlin + 49 30 25 99 55 80
International Corneliusstrasse 7 D-10787 Berlin + 49 30 25 99 57 20
Amsterdam office WTC Schiphol
Schiphol Boulevard 263
NL-1118 BH Schiphol
+ 31 20 20 65 96 0
London office 1 Crown Court, 66 Cheapside GB-London EC2V 6 LR + 44 20 757 264 93
Prague office Slovanský d m
Na P íkop 22
CZ-110 00 Prague 1
+ 420 / 221 / 451 001
Warsaw office ul. Widok 8 PL-00-023 Warsaw + 48 22 690 656 5
Paris office 40 Rue La Pérouse F-75116 Paris
Central Support, International Corneliusstrasse 7 D-10787 Berlin + 49 30 25 99 57 20
Capital Markets
Business Management
Relationship Management
Alexanderplatz 2 D-10178 Berlin + 49 30 24 56 25 65
+ 49 30 24 59 29 03
Client Business Distribution Alexanderplatz 2 D-10178 Berlin + 49 30 86 96 20 42
Client Business Production Alexanderplatz 2 D-10178 Berlin + 49 30 86 96 12 43
Treasury and Trading Alexanderplatz 2 D-10178 Berlin + 49 30 24 56 24 07
+ 49 30 24 56 65 16
International Business Alexanderplatz 2 D-10178 Berlin + 49 30 24 56 51 35

Major investments
Berlin-Hannoversche
Hypothekenbank AG
netbank Aktiengesellschaft,
Hamburg
Finanz Informatik GmbH & Co. KG,
Frankfurt / Main
LBB Finance
(Ireland) plc, Dublin
Versicherungsservice GmbH
Unternehmensgruppe Landesbank Berlin
Major investments are shown.
Investments of which no percentage is shown are wholly
owned and based in Berlin, unless otherwise stated.
Landesbank Berlin Holding AG
Landesbank Berlin AG
Berliner Sparkasse*
Landesbank Berlin
Investment GmbH
75.0 % --1 share Landesbank Berlin International S.A.,
Luxembourg
12.0 % LBS Norddeutsche Landesbausparkasse
Berlin-Hannover AöR,
Berlin / Hanover
7.8 % BankenService GmbH
Unternehmensgruppe Landesbank Berlin
25.1 % B + S Card Service GmbH,
Frankfurt / Main
GfBI Gesellschaft für Beteiligungen
und Immobilien mbH
LBB Grundstücks-Gesellschaft mbH
der Landesbank Berlin AG
* A branch of Landesbank Berlin AG Status: March 2011
Other Information 221
Banks and investment company Finance companies and other services

222
Other Information
Abbreviations
ABS asset-backed securities
AFS available-for-sale
AG Aktiengesellschaft, German Stock Corporation
AktG Aktiengesetz, German Stock Corporation Act
AMA advanced measurement approach
BaFin Bundesanstalt für Finanzdienstleistungsaufsicht,
German Federal Financial Supervisory Authority
BBG Beitragsbemessungsgrenze, income threshold
in statutory pension scheme
Berlin Hyp Berlin-Hannoversche Hypothekenbank AG, Berlin
BetrAVG Gesetz zur Verbesserung der betrieblichen Altersversorgung,
German Company Pensions Act
BGB Bürgerliches Gesetzbuch, German Civil Code
CCE current credit exposure
CDO collateralised debt obligation
CFH cash flow hedge
CMBS commercial mortgage-backed securities
COBIT Controlled Objectives for Information Technology
CreditVaR credit value-at-risk
CSO Chief Security Officer
DakOR OpRisk data consortium
DBO defined benefit obligation
GCGC German Corporate Governance Code
GAS German Accounting Standards
DSGV Deutscher Sparkassen- und Giroverband, German
Savings Banks and Giro Association
ESM European Stability Mechanism
EStG Einkommensteuergesetz, German Income Tax Act
EU European Union
ECB European Central Bank
FED Federal Reserve System
FVO fair value option
GmbH Gesellschaft mit beschränkter Haftung, limited
liability company
CIS Community of Independent States
HFT held-for-trading
HGB Handelsgesetzbuch, German Commercial Code
Holding Landesbank Berlin Holding AG
HTM held-to-maturity
IAS International Accounting Standards
IASB International Accounting Standards Board
IBG Immobilien- und Baumanagement der
BIH-Gruppe GmbH
IDW Institut der Wirtschaftsprüfer, German Institute
of Chartered Accountants
IFRS International Financial Reporting Standards
IKK Internal scope of consolidation concept
ICS internal controlling system
IKS LüS internal controlling system for performance
monitoring offices
InstitutsVergV Institutsvergütungsverordnung, German
Remuneration Ordinance for Banks
ISMS information security management system
ISO International Organisation for Standardization
IT information technology
ITIL IT Infrastructure Library
IMF International Monetary Fund
KG Kommanditgesellschaft, limited partnership
KStG Körperschaftsteuergesetz, German
Corporation Tax Act
KWG Kreditwesengesetz, German Banking Act
L & R loans and receivables
LBB Landesbank Berlin AG, Berlin
LBBH Landesbank Berlin Holding AG, Berlin
LBB-INVEST Landesbank Berlin Investment GmbH, Berlin
LDA loss distribution approach
MaRisk Mindestanforderungen an das Risikomanagement,
Minimum Requirements for Risk Management
MBS mortgage-backed securities
MitbestG Mitbestimmungsgesetz, German
Codetermination Act
ÖffSchOR Öffentliche Schadenfallsammlung,
public loss database
OL other liabilities
OpRisk operational risk
OSPlus OneSystem Plus
OTC over-the-counter
P & L profit and loss
PFE potential future exposure
PIIGS Portugal, Italy, Ireland, Greece, Spain
PUC projected unit credit method
RMBS residential mortgage-backed securities
RVAGAnpG German Act on the Adjustment of the
Standard Age Limit
RVG Regionalverbandsgesellschaft der
S-Finanzgruppe mbH, Neuhardenberg
SA société anonyme
S-Beteiligungsgesellschaft
S-Erwerbsgesellschaft
Beteiligungsgesellschaft der S-Finanzgruppe
mbH & Co. KG, Neuhardenberg
Erwerbsgesellschaft der S-Finanzgruppe
mbH & Co. KG, Neuhardenberg
SIC Standing Interpretations Committee
SIZ Savings Bank IT Centre
SolvV Solvabilitätsverordnung, German
Solvency Ordinance
VaR value-at-risk
VorstAG Gesetz zur Angemessenheit der Vorstandsvergütung,
German Act on the Appropriateness
of Management Remuneration
WpHG Wertpapierhandelsgesetz, German Securities
Trading Act

Imprint
Published by
Landesbank Berlin Holding AG
Corporate Communications
Alexanderplatz 2
D-10178 Berlin
Designed and produced by
HGB Hamburger Geschäftsberichte GmbH & Co. KG
Photography
Elke A. Jung-Wolff, Berlin
Titel: Strandperle, Hamburg
Photo page 19: 2 sculptures in background,
Rudolf Belling, © VG Bild-Kunst, Bonn 2011
Printed by
Broermann Druck + Medien GmbH, Troisdorf
ISSN 1868-3304

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the Annual Report, please contact:
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