Dear customers and business partners,

shareholders and staff,

»Laying the foundations and creating a solid basis for a new start into the future« was the central theme of our annual report for 2007. After the first six months, we are able to appreciate just how fitting this theme was and how important it was to prepare, as part of the reorientation of our bank, for an environment our business has rarely and in some respects never experienced before.

No effort was spared by our staff and management, and they have done their utmost to face up to the challenges. The financial markets, the competition and internal targets confronted them with many different demands:

• To keep developing the bank in spite of the effects of the global financial crisis and to absorb negative effects.
• To bring structures and processes in line with internationally accepted standards and to adjust the risks.
• To drive growth, to comprehensively advise our customers and to provide a fully satisfactory service.

Although each of these areas in itself already presents us with very specific challenges, the unique challenge this year is that they all have to be addressed simultaneously and in combination.
So far, we have responded with quite some success.

In terms of operative business, we have been successful during the first six months, extending our position in important markets. In this way, we have been able to demonstrate the strong link between our customers and ourselves and how much they are prepared to follow us on the path of reorientation.

The partnership with BayernLB, which had begun the previous year, was further extended. Joint products were established in the market, and promising business connections
were developed.

In addition, the internal consolidation of our group and the issue of risk reduction were treated as top priorities. In this respect, our approach was guided by the principle of sustainability and the systematic elimination of inappropriate risks. Although the consequence was a negative interim result, we believe that this is a necessary consequence and are convinced that the lean period, although unpleasant, will be reasonably short.

In the second half of the year, we will continue on this course. One should not expect that the financial crisis has already come to its end. Therefore, we are prepared to face unexpected challenges also in the second half of the year. Our actions shall be all the more cautious for that, and we are determined to run a tighter ship. However, new opportunities also open up in stormy weather. Notwithstanding our concentration on internal consolidation, we will identify and capitalize on new opportunities. For it is a fact that the specific markets of our bank are growing dynamically in spite of the economic turbulences and doubtlessly uncertain times. In essence, we expect that 2008 will keep presenting us with challenges, but at the same time it may well become an important year with plenty of opportunities for our bank. In spite of the difficult environment, we are working to make it a good year in co-operation with our customers.

With this in mind, I wish to thank all members of the staff for their dedication and tireless efforts. I also wish to extend my thanks and acknowledgement to our more than 1.2 million customers as well as our business associates and shareholders for placing their trust in us, which motivates us to excel in our daily work.

With best wishes