Annual Report

The positive economic trends of 2006 initially continued in 2007. The GDP rose 2.5 %, the rolls of the unemployed saw a decrease from 4.3 million to 3.4 million and the German stock index DAX had gained 22 % by the end of the year. With the onset of the year’s second half, however, financial markets felt the impact of the subprime crisis, giving rise to greater volatility at exchanges, fewer issues as well as a liquidity shortage in the European banking sector.
 
In spite of what ultimately amounted to highly challenging conditions, the Warburg Banking Group succeeded once more in markedly improving its results in 2007 after a good fiscal 2006. Due to our traditionally stringent risk management, we deliberately did not invest, or recommend that our clients invest, in subprime products or any other asset backed securities structures. Accordingly, we were able to profit from the business opportunities generated by the 2007 economic environment without taking on the burden of subprime products. The stability of our liquidity situation was further evidenced by the money market, where we acted as a net lender. 








 

Our core business areas are private banking, asset management and investment banking, and we offer a broad range of high-quality products and services in each. In 2007, we were again able to assist our clients with custom solutions to questions of financing and investing.
 
In the course of the year 2007, the total business volume of the Warburg Banking Group climbed to €8,899.7 million, consolidating our position as one of Germany’s leading private banks. The group’s income before taxes and profit-related compensation (as determined on a cumulative basis), which had already risen sharply over the two preceding years, again saw a significant increase, by 22.6% to €63.0 million. 

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