Corp Landesbank Berlin Holding

clients rose by almost 1,000. We see this trust placed
in us by corporate clients as an indication of the
quality of our business model and our customer support
principles. We are adhering to this, even in these
economically difficult times. Berliner Sparkasse is
one of Germany’s leading savings banks for consultancy
and start-up finance.
The operating result increased again. Despite intensive
competition with regard to terms, which led to
decline in margins in the area of deposits, net interest
income was up 3.6 % year-on-year. There was
also pleasing development in terms of risk costs in
2008. Net fee and commission income exceeded
last year’s value by a considerable amount. This can
attributed to assigning export finance to the Regional
Corporate Banking segment for the first time during
the reporting year.
Persistent challenges in the market
environment
In 2008, the economic upward trend slowed in our
core region. Key growth drivers were the innovative
technology sectors and business support services.
However, the economic power of the predominantly
small-scale corporate landscape remained below
average compared with other German states. Yet the
frequency of company insolvencies was above the
national average. Falls in orders which have been
posted in part, the development in energy prices as
well as business prospects estimated as being
tougher in view of the financial and economic crisis
all contributed to planned capital expenditure projects
being postponed at least in part.
In 2008, the Regional Corporate Banking business
was also affected by intensive competition and high
pressure on margins in all client segments. In this
market environment, Landesbank Berlin succeeded
in further improving its market penetration. This
strength can again be seen in the net growth in
small and medium-sized client numbers and in the
business client segment.
Average lending for the year expanded
In 2008, despite the difficult general economic conditions,
the business volume at Landesbank Berlin
expanded. Although the volume of client receivables
fell to € 5.5 billion as at the reporting date as a result
of short-term loans, the average for the year in terms
of the corporate loans portfolio increased year-onyear
by 7.6 %. New business also expanded. We
continued our strict risk policy.
Encouraging growth in deposits
The deposits business for Regional Corporate Banking
at Landesbank Berlin once again showed an
encouraging development. The volume of customer
deposits as at the balance sheet date 31 December
2008 exceeded the previous year’s value by 18.7 %,
reaching € 4.2 billion. The considerable growth in
deposits corresponded to the sector trend for German
companies in the Berlin-Brandenburg banking centre
up until the third quarter. In the fourth quarter of
2008, boosted growth in deposits made by small
and medium-sized companies and business clients
was posted for Regional Corporate Banking at
Landesbank Berlin as a reaction to the turbulence on
the financial markets. This development again confirms
our customers’ high level of trust in the safety
of their deposits and the reliability of our business
model.
About the company
Regional Corporate Banking
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