Landesbank Berlin Holding

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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.