Annual Report
GDP grew by a mere 1.3 % in 2008 after economic growth suffered a historic 2.1 % decrease in the fourth quarter. The ranks of the unemployed shrank from 3.4 million to 3.2 million in 2008. The DAX lost 40 % over the entire year, and IPOs on European exchanges came to a halt.
In this economic environment, the Warburg Banking Group generated a gratifying annual surplus in fi scal 2008. The Warburg Banking Group is organized under the umbrella of the holding company "M.M.Warburg & CO Gruppe KGaA,” which is essentially composed of M.M.Warburg & CO KGaA and its subsidiaries, the former functioning as both an operating and an interim holding company.
We were able to achieve such a good result because we offered our clients
reliable services and attractive business opportunities in the past and continue to do so under the
present, difficult circumstances. At the same time, our traditionally cautious approach to
risk-taking has borne fruit: We are not affected by toxic assets.
The stable nature of our business orientation is evident in the numbers: The
total business volume of the Warburg Banking Group moderately expanded 5 %, from € 8,900 million to
€ 9,233.9 million. At an annual surplus in the amount of € 56.8 million, we achieved a highly
satisfactory outcome – even if it falls slightly short of the 2007 annual surplus of € 63 million.
The annual result permits the holding M.M.Warburg & CO Gruppe KGaA to increase its equity from
€ 299.8 to € 314.5 million; all of the group’s banks strengthened their equity base by € 17
million. According to the rules of the German Kreditwesengesetz (banking act), the Warburg Banking
Group raised its liable capital from € 434 million to € 480 million, thereby documenting its
stability in these difficult economic times.
ANNUAL REPORTS OF PREVIOUS YEARS
