Prospectus - Notowania

turbulence and difficulty, as a result of which, in terms of income from brokerage, the
business segment could not fully benefit from completion of the integration between
the HVB and UBM structures.
Conversely, as regards fees and commissions in 2007, the Group recorded a strong
performance. The Retail and Corporate segments confirmed the levels of fees and
commissions reached in previous years (given the same scope of consolidation),
consolidating their position and the effectiveness of their commercial structures. The
increase recorded by the Private and Asset Management business segments was
instead related to the trend in underlying assets, up in 2007. The increase registered by
Markets & Investment Banking was due to the good results of structured finance,
origination and advisory activities (especially in the ECM segment) and the growth in
customer trading activities.
( in millions of Euros) % Change
Operating income (Reclassified)
Retail
Corporate
Private Banking
Asset Management
Markets & Investment Banking
Poland's Markets
Central Eastern Europe (CEE)
Parent Company and other companies*
Total
* Includes netting and write-downs.
2008
10,925
6,332
1,414
1,088
134
2,183
4,736
54
26,866
2007
Reconstructed
10,921
5,994
1,509
1,578
3,229
2,156
3,367
748
29,502
2006
7,729
4,889
1,067
1,332
3,095
2,132
2,799
421
23,464
2008/2007
0.0%
5.6%
-6.3%
-31.1%
-95.9%
1.3%
40.7%
-92.8%
-8.9%
2007/2006
41.3%
22.6%
41.4%
18.5%
4.3%
1.1%
20.3%
77.7%
25.7%
Given the result of net interest income and income from brokerage and other income,
the operating income at the end of 2008 had therefore fallen significantly compared
with the previous year. The reduction in the operating income is prevalently due to the
Markets & Investment Banking segment, which contributed only € 134 million in
2008, down by 96% against the same period in the previous year. A similar trend was
evident in the Asset Management business segment, although to a lesser extent (-
31%), it too subject to the negative market conditions that characterised most of 2008.
Said trends were only partially offset by solid growth in the CEE segment and the
other business segments whose result was essentially in line with the 2007 result
(+1.3% net of Parent company profit). With reference to the Corporate segment,
growth in profit was the result of the improvement in the net interest income which
offsets the drop in trading income. As regards its operating income, the Retail segment
discounted provisions made to the public fund of dormant accounts, as set out by the
decree introduced with the 2006 Finance Bill and the protection of customers holding
policies with underlying Lehman Brothers securities.
In 2007, as a result of significant growth in the net interest income and stability of
income from brokerage and other income, the operating income recorded an increase
of 5.5% net of the Capitalia contribution. In 2007, the Markets & Investment Banking
segment, net of the Capitalia contribution, registered a decrease given already more
exposed to volatility in the financial markets. The CEE segment recorded double-digit
growth of 20.3%.
The negative performance of the Markets & Investment Banking segment is in
contrast to the positive development in the other business segments. In particular,
CEE and Poland’s Market benefited from the positive growth conditions on local
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