In the 2010 financial year, LBLux generated a satisfactory after tax result of EUR 16.8 million in what were difficult market conditions (previous year: EUR 29.0 million). Consistent risk reduction in the bond portfolio gave rise to a liability of EUR 23.8 million, in what was an otherwise solid annual result.

Net interest income, including earnings from securities in the amount of EUR 59.0 million was down 21% on the previous year. This was due to the exceptionally good result in the money market business generated in the previous year. In comparison with 2009, risk provisioning was cut significantly to EUR 13.2 million. This allowed for an increase in net interest income after provision for risk to EUR 45.8 million. Net commission income rose slightly to EUR 18.9 million (previous year EUR 18.6 million). This was primarily due to activity in private banking stabilising. At EUR 31.0 million, administrative expenses were barely 1% over the figure for the previous year.

Total assets

LBLux's balance sheet total was down by EUR 0.8 billion from the reference date for the previous year, standing at EUR 8.4 billion. At EUR 9.9 billion, the volume of transactions fell by 10%. These falls were primarily due to the planned reduction of non-core activities which were reduced by EUR 1.3 billion from the start of 2009, to represent a figure of EUR 1.4 billion as at 31 December 2010.

Developments in business operations

In Private Banking & Wealth Management, the focus is set on providing international financial advice for direct clients, as well as asset management. LBLux enhanced its position as a Private Banking competence centre within the BayernLB Group. LBLux Active Mandate asset management once again generated a sound performance this year, in some aspects clearly outperforming the target yield (e.g. the "Balanced" strategy with its target yield of 7.0%, which as at 31.12.10 achieved a performance of 11.39%). As at 31.12.2010, the Private Banking & Wealth Management division had a volume of some EUR 5 billion under management (previous year: 4.7).

In the Corporate Banking division the focus, in 2010, remained on consolidating business relationships with corporate, project and property clients and on selectively extending the client base. Despite the gradual increase in corporate investment activity, the volume was still down slightly. At the end of 2010, the total volume of the Corporate Banking division stood at EUR 5.4 billion (previous year EUR 5.8 billion).

Employees

Along with the selection of top-class products, the provision of further training for our employees also has an important role to play. With a total of 850 days of further training in 2010, close to 90% of our employees took part in at least one of a total of 141 further training measures.

Within the context of talent management, the "Promoting potential" module has established itself as a fixture in the calendar. This saw another group of talented junior staff complete the promotion program for high-potential employees and earmark themselves for further specialist and management duties.
At 31.12.10 the Bank employed 166 employees, including 18 under individual part-time agreements.

Outlook for 2011

LBLux will be pressing on with its successful business strategy in 2011. In Private Banking, the particular point of focus will be the acquisition and servicing of international and wealthy private clients. Collaboration with savings banks and asset managers will likewise be extended and intensified. Towards this end, the Bank will be look to intensify its client acquisition efforts through our corporate values: Trust, professionalism and expertise. In Corporate Banking, LBLux will be making even greater use of its established network involving all of the significant players in the Benelux area in order to extend its successful cooperation with BayernLB in the course of cross-selling.