Loan Products

Revenues for loan products fell 25% from the same quarter a year ago to €241 million for the first quarter of 2008, reflecting the application of the fair value option to new lending activity and related hedges, and the absence of gains on sales from restructured loans realized in the first quarter 2007.

Other Products

Other Products revenues declined by €185 million from a year ago to €253 million in the first quarter of 2008 on market-to-market losses due to investments held to back insurance policyholder claims in Abbey Life.

In provision for credit losses, CB&S recorded a net release of €8 million in the first quarter 2008 compared to a net release of €21 million in the prior-year quarter.

Global Transaction Banking (GTB)

In the three months to March 2008, GTB net revenues increased 8% from a year earlier to €661 million as a result of strong growth in Trade

Finance, Domestic Custody and Cash Management.

Higher volumes in the documentary credit business and a stronger guarantee business in Asia-Pacific and Europe boosted performance in Trade Finance, while Cash Management generated higher revenues owing to transaction volumes in the Euro clearing business.

In provision for credit losses, a net release of €3 million was recorded in the first quarter 2008, compared to a net charge of €1 million in the prior-year quarter.

Income before income taxes increased 17% from the comparable period a year ago to € 250 million for the first quarter.

Private Clients and Asset Management Group Division
Asset and Wealth Management (AWM)

AWM net revenues declined 1% from the year ago quarter to €1 billion, as Portfolio/Fund Management revenues in Asset Management (AM) plummeted 8% compared to the first quarter 2007 on continued deterioration in the credit markets.

Similarly, Portfolio/Fund Management revenues in Private Wealth Management (PWM) fell 4% to €4 million as the financial market turmoil negatively impacted asset-based fees.

Brokerage revenues in the period, however, gained 3% to €238 million on higher demand for alternative investment and structured products.

Loan/Deposit revenues advanced 18% year-on-year to €62 million due to higher balances and margins in both loan and deposit business.

Overall, AWM''s income before income taxes was flat at €188 million.

Private & Business Clients (PBC)

Net revenues in the division rose 2% from a year earlier to €1.5 billion as Payments, Account & Remaining Financial Services edged up 26% year-on-year to €57 million leveraged by high levels of insurance products sales.
In the period under review Loan/Deposit revenues increased 4% from a year earlier to €27 million.

Despite brokerage revenues falling 11% to €34 million, deposit revenue jumped significantly.