The German private bank based in Hamburg is not burdened by the financial market crisis and generated a net income of EUR 48 million in fiscal 2008.

 

Following an exceptional 2007, M.M.Warburg & CO thus attained a very pleasing result. Accordingly, the company proves its specific stability, which is attributable to a well-balanced business model and a restrained business policy. Straightforward, clear service offerings and a trustful cooperative relationship with our customers prove to be sustainable particularly in difficult times. Relying on a stringent accounting according to the German Commercial Code and with regular income from the private banking, asset management and investment banking divisions, the bank is based on solid pillars. As a result of this good positioning it enjoys high cash inflows and acts as a net lender on the market. The private bank deliberately steered clear of the undesirable developments and excesses of the financial market.

M.M.Warburg & CO Gruppe KGaA internally strengthens its own funds from the net income by EUR 14.2 million. Thus, the equity totals EUR 314 million. The liable capital of the Banking Group pursuant to the German Banking Act increased from EUR 434 to 480 million.

 

The net fee and commission income of the banks within the group amounted to EUR 100.4 million, the interest income increased to EUR 109.8 million. The return on equity (core capital before taxes and profit-related compensation) was 23.06 percent.

 

The Warburg Banking Group has consolidated Assets under Management worth EUR 29.2 billion (previous year 30.5). The remarkable private customer acquisition successes slightly failed to compensate for the churn of institutional customers.

 

At the end of 2008, the Warburg Banking Group employed a staff of 1,012, 18 more than in the previous year. The whole M.M.Warburg & CO Gruppe KGaA had 1,584 employees in December 2008 (previous year 1,531), of which 572 are attributable to Degussa Bank GmbH (previous year 537).

 

Degussa Bank GmbH, which belongs to the holding company “M.M.Warburg & CO Gruppe KGaA“, likewise had a good business year, but reports separately.

At the end of last year, M.M.Warburg & CO continued its tried and tested strategic growth approach also by means of acquisitions and acquired 25.1 percent of Schwäbische Bank AG in Stuttgart. By acquiring these shares, the regional presence is expanded to the south-west of Germany. Schwäbische Bank is well managed and has both stable earnings and a very good core capital ratio.

 

 

It is imperative for 2009 that the whole banking industry returns to a down-to-earth attitude again, said Dr. Christian Olearius, spokesman for the General Partners. Warburg would then be able to continue steadily increasing its market share, as it is very well positioned, he added. The clients with their wishes and needs are at the centre of both the bank’s and its employees’ endeavours.

 

 

M.M.Warburg & CO is one of the large and independent private banks in Germany and services private customers, corporate clients and institutional investors in the core business segments of asset management, private banking and investment banking. The Warburg Banking Group, which is active in the field of financial services, belongs to the holding company „ M.M.Warburg & CO Gruppe KGaA“. The Warburg Banking Group basically consists of M.M.Warburg & CO, which is active both operatively and as an intermediate holding, and its subsidiaries Bankhaus Hallbaum, Bankhaus Löbbecke, Bankhaus Plump, Marcard, Stein & CO, Warburg Hypothekenbank, Warburg Invest as well as its subsidiary institutes in Luxembourg and Switzerland. The Banking Group is represented in eleven German cities (Hamburg, Frankfurt, Cologne, Hanover, Osnabrück, Göttingen, Hildesheim, Berlin, Braunschweig, Bremen, and Stuttgart) with numerous branches as well as in Zurich and Luxembourg.

 

 

The reported figures do not include the figures of Degussa Bank GmbH which belongs to the holding company „M.M.Warburg & CO Gruppe KGaA“ and the figures of VIGOR Beteiligungsgesellschaft mbH belonging to the Warburg Network. Degussa Bank and VIGOR report separately.

The annual report will not be published before the first quarter 2009 and will also be available for download at that time.