Corp Landesbank Berlin Holding

Net interest income developed extremely positively,
increasing to € 381 million. It was thus up € 251 million
year-on-year. This success is mainly due to money
market activities.
As a result of the jitters on the credit markets, there
was a decline in net income from financial instruments
recognised at fair value through profit and
loss, in the amount of € 243 million to € – 284 million.
Due to the write-downs on exposures with Lehman
Brothers, Washington Mutual, Icelandic banks and
funds, net income from financial assets declined by
€ 267 million year-on-year to € – 293 million.
At € 53 million, allowance for losses on loans and
advances was up € 83 million year-on-year. The key
influencing factors were the collapse of Lehman
Brothers and valuation allowances for securitised
US real estate loans as well as, to a lesser extent,
worsening country ratings (for example Ukraine,
Kazakhstan).
In 2008, net commission income was affected for the
first time by an income settlement from the reassignment
of export financing to the Regional Corporate
Banking segment (€ – 14 million). At € 30 million, net
fee and commission income was down € 8 million
as against 31 December 2007 (after adjustment for
the above income settlement), mainly resulting from
falling brokerage income.
Administrative expenses fell year-on-year by € 21 mil-
lion to € 152 million. Alongside the continued success
of cost reduction measures, the reassignment of
income from the export financing department to the
Regional Corporate Banking segment also led to
easing of expenses.
At € – 391 million, the result from Capital Markets
was down € 380 million year-on-year as a result of
negative impacts caused by market conditions.
Financial market crisis affects LBB-INVEST
The growth achieved over recent years in the special
and mutual funds of LBB-INVEST did not continue in
2008. The fund volume decreased from € 12.8 billion
at the end of 2007 to € 10.3 billion at the end of 2008.
The decline in the mutual fund volume to € 3.4 billion
is mainly attributable to price losses on the share
markets.
The outstanding certificate volume fell to € 2.3 billion
in the course of the financial crisis, mainly driven by
price effects. Gross sales of certificates and structured
products amounted to € 1.2 billion in the reporting
year.
Landesbank Berlin will continue to provide its customers
with creative, tailored product solutions based
on its many years’ experience and recognised competence
in the market, even though it is not yet
foreseeable where customer demand will be focused
following the uncertainties brought about by the
financial crisis.
Initially in 2008, business volume in international
business markedly expanded, particularly in export
finance. With the escalation of the financial crisis,
limits and thus new business were scaled back in
the fourth quarter. In our operating business, income
was up € 4 million year-on-year.
About the company
Capital Markets
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