Corp Landesbank Berlin Holding

Berlin’s economy weakening
After posting a slight upward trend in the previous
year, the economy in Berlin declined in the second
half of 2008. Berlin’s gross domestic product grew
by only 1.6 % over the whole of the year, compared
to 2.0 % in 2007.
Although the number of persons employed increased
and the number of unemployed decreased, the economic
situation of our retail banking customers
improved only slightly overall. Disposable income in
Berlin remains below the national average, as does
the savings rate. The number of personal insolvencies
decreased by approximately a quarter as a result of
changes to procedures.
Further increase in instalment loans
The instalment loans / all-purpose loans business of
Landesbank Berlin grew as planned in 2008. At the
year-end, the portfolio of this type of loans was
10.9 % up on the same date in the previous year, at
€ 602.7 million. New business in instalment loans /
all-purpose loans reached € 416.8 million (previous
year: € 363.4 million). Landesbank Berlin’s private
construction finance business also increased in
2008. New business in loan extensions increased
by 10.3 % to € 183.2 million.
The lending volume of the Private Banking division
totalled € 3.96 billion as of December 31, 2007 and
was consequently 21.6 % up on the figure for the
previous year. The new activities in sales financing
create additional sales channels for Landesbank
Berlin in its instalment loans business, and create
further business potential nationally in connection
with the card business and the Internet sales via
netbank AG.
Stock market trends benefit deposits business
The securities business of Landesbank Berlin could
not escape the negative performance of the stock
market. Custodian account volume (including LBB-
Invest accounts and DekaBank securities accounts)
fell sharply by 20 % due to market jitters. However,
the deposits business benefited from the increased
need for security among customers. As a result,
Landesbank Berlin increased its deposit volume
by a total of 6 % to € 11.6 billion, and to as much
as € 12.35 billion when netbank AG is included.
Sales of certificates were significantly affected in the
last few months of the 2008 financial year due to
general public discussion about this type of security
following the insolvency of Lehman Brothers in the
USA. Gross sales of certificates, including in the
FlexInvest product family, therefore decreased to
€ 254 million during the financial year as a whole
(previous year: € 351 million).
About the company
Retail Banking
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