Berenberg continues expansion

Hamburg (ots) -

- Record net commission income: up 15.8% to EUR 206.4 million
- Net profit for the year up 7.3% to EUR 60.2 million
- Assets under management up 8.3% to EUR 28.2 billion
- No. 3 for IPOs and capital increases in
Germany/Austria/Switzerland
- Office opened in New York

"The banking sector faces a multitude of challenges in 2013," says
Dr. Hans-Walter Peters, spokesman of the managing partners at
Berenberg. "More than ever, it is essential for banks to offer their
customers visible benefits. This is the objective of our mission as a
competent, responsible service provider: we aim to support our
customers."

As in previous years, this was achieved again in 2012. Berenberg
recorded a further rise in demand for its services and generated very
good results throughout the global financial crisis.

Germany's oldest private bank has rapidly expanded its presence in
international financial centres in recent years. Berenberg now
employs 152 people in London (up 9), 79 in Zurich (up 5) and 59 in
Frankfurt (up 3). Again in 2012, can report a slight increase in its
headcount (from 1,110 in 2011 to 1,116 in 2012) in marked contrast to
the general trend for job cuts across the banking industry.

"The Berenberg Capital Markets LLC subsidiary that we set up 18
months ago in Boston has marketed our equity research product to U.S.
institutional investors so successfully that we decided to open a
further office in New York in mid-2012. We see this as a good
opportunity for providing access to U.S. investors for German and
European companies," explains Hendrik Riehmer, the managing partner
responsible for Investment Banking. Together with a larger Equity
Research unit, the U.S. facilities and the sales offices located in
the European financial centres have helped to expand the client-
driven equity trading volume rapidly, meaning that client commissions
rose by 55% in 2012.

Operating results (provisional figures)

Despite a difficult market environment, the 2012 financial year
closed with a net profit for the year of EUR 60.2 million (2011: EUR
56.1 million; up 7.3%), the fourth-best result in the 423-year
history of the Bank. At 76.5%, the cost-income ratio is at around the
same level as last year (75.9%).

This positive operating result was driven primarily by net
commission income, which rose by 15.8% to a historical high of EUR
206.4 million (EUR 178.2 million). "This reflects our successful
growth and our focus on service activities," comments Peters. At EUR
31.2 million, current net interest income remained at the same level
as last year (EUR 31.8 million), despite low interest rates; net
trading income rose from EUR 32.0 million to E35.1 million. The ratio
of current net interest income to net commission income is now 13:87
(15:85), demonstrating the importance of commission-earning
operations, and hence service activities, for the Bank's business
model.

Assets under management grew strongly, from EUR 26.0 billion to
EUR 28.2 billion (up 8.3%). Total assets rose by 8.2% to EUR 4.3
billion (EUR 4.0 billion) on account of higher client deposits. The
Bank's liable equity increased to E220.9 million (EUR 216.9 million).
At 14.4% (14.1%), the core capital ratio of the Berenberg Group was
above the targets required under Basel III in the future.
Furthermore, the Bank plans to increase its core capital by building
retained earnings of a further EUR 2.5 million, after the net income
for the year has been approved, so as to reinforce the capital base.

"The positive development in our earnings enabled us again to
invest in strengthening and expanding our institution in 2012," says
Peters. In particular, investments were made in highly qualified
staff and existing structures enhanced under qualitative
considerations. As a result of this, personnel expenses rose from EUR
128.8 million to EUR 140.0 million, while total general
administrative expenses (personnel, IT and marketing expenses plus
cost of materials) increased to EUR 214.9 million (EUR 195.7
million).

"We can justifiably claim to have a very good setup across all
lines of business and claim a strong demand for our services on the
market," says Peters.

Private Banking

It was again a very challenging year for the private banking
industry in 2012. Low interest rates joined forces with rising
regulatory requirements, and at times politically-driven capital
markets, to put pressure on profitability across the whole sector.
"Nevertheless, Berenberg invested further in the quality and
professionalism of its advisory offering in 2012," comments Peters.

Berenberg offers its wealthy private clients a broad service
package, ranging from asset structuring advice and conventional asset
management to investments in real assets and specialist fields like
art investment and succession planning. The focal point of our
service, however, remains our asset management, for which we have
permanently refined the investment processes. We offer our clients
value added in the current environment of low interest rates by
concentrating on performance-oriented diversification across various
asset classes and risks. Alongside various promising investment
fields, we are putting more emphasis on the fast-expanding emerging
markets where we have amply demonstrated our expertise in the broad
investment setting.

As was already the case in 2011, our clients increasingly turned
to investments in real assets in 2012. We succeeded in providing
access to profitable investment opportunities in real estate,
forestry, agricultural land and art.

Trade magazines belonging to the Financial Times Group named us
the "Best Private Bank in Germany" in 2012. For the ninth time in a
row, we achieved the highest score possible in the "Die Elite der
Vermögensverwalter" report published by Handelsblatt, and the German
Institute for Service Quality bestowed upon us the title of "Best
Asset Manager 2012".

"In parallel to our German private banking activities, our Private
Banking branch in London succeeded in expanding its operations in the
UK, while Berenberg Bank (Schweiz) AG successfully manages private
wealth throughout the world," explains Andreas Brodtmann, the
managing partner responsible for International Private Banking and
Family Office Services.

Investment Banking

Berenberg Investment Banking focuses on services and client
activities in the field of equities and bonds, accompanies IPOs and
capital increases, and advises on mergers and acquisitions.

"In 2012, we took the lead in arranging two of the five big IPOs
in Europe - DKSH and Talanx - acting as book-runner or global
coordinator and were involved in many others. According to Bloomberg,
we are among the top three banks in Germany, Austria and Switzerland,
with seven primary market transactions accompanied," explains
Riehmer. Berenberg generates additional demand for capital market
activities by addressing further target groups including mid- sized
institutional investors, family offices and wealthy private
investors. The conventional equity brokerage activities for
institutional clients also proved very successful. "Despite poor
markets, we managed to increase our client commissions in this field
by 55%, which enabled us to significantly expand our market share,"
says Riehmer.

Berenberg has one of the most comprehensive research teams in
Europe, with 70 equity analysts tracking almost 500 companies across
eight sectors. As Riehmer explains: "Our research is characterised by
independence. We do not maintain our own order book, and the research
is geared totally to the needs of our clients."

A hundred or so companies presented themselves to institutional
investors at each of two investor conferences in London and Munich;
14 of the 20 world's biggest asset managers were represented in
Munich alone.

We started to accompany bond issue transactions in 2012, already
acting as co-lead-manager twice for the Otto Group and for other
issues. On the M&A side, we again succeeded in improving our
reputation on the market - especially for complex corporate
transactions.

Asset Management

Berenberg Asset Management focuses on quantitative investment
strategies for institutional investors. The product and service
offering covers the implementation of overlay strategies used to
systematically hedge interest rate, stock market, currency and
commodity risk together with volatility-based strategies serving to
generate additional market-neutral earnings, and quantitative
selection strategies for equities and bonds. Individual oversight
coupled with new innovations and constant refinements have been
rewarded by distinctions, such as the overall winner in the Telos
Asset Management Satisfaction Study.

Assets under management rose significantly to E10.5 billion. Net
inflows to the currency overlay strategies used in the dynamic
hedging of currency risk were responsible in particular for this rise
alongside capital gains. Established strategies also performed very
well in a volatile market environment. Acquisition activity in the UK
also yielded positive results, with two major pension funds
commissioning us to act as asset manager in 2012. 7 We achieved
considerable success in the field of retail funds in terms of both
performance and cash inflows. The outperformance of our quantitative
equity strategies and our total return strategies against the
relevant market and total-return benchmarks averaged 2.30% and 3.50%
respectively in 2012. The volume of retail fund assets managed by
Asset Management rose by EUR 350 million to reach EUR 1.7 billion.

Corporate Banking

Corporate Banking offers the kind of advice traditionally provided
by private banks to SMEs and capital-market-oriented companies
notably regarding financing structures, currency and investment
concepts, and payments. In this context, special solutions have been
devised for shipping and real estate clients. Through its Structured
Finance business unit, moreover, Berenberg advises major companies
and financial investors on suitable financing structure, sometimes
including the use of capital market instruments. Among other things
in 2012, we issued financing confirmations for the public
acquisitions of CinemaxX AG and vwd Vereinigte Wirtschaftsdienste AG
and advised Rhön-Klinikum AG on the arrangement of a syndicated loan.

About Berenberg

Established in 1590, Berenberg is one of the leading private banks
in Europe today, focussing on four operating divisions: Private
Banking, Investment Banking, Asset Management and Corporate Banking.
The Hamburg-based bank with a strong presence in London, Zurich and
Frankfurt together with 12 other offices in Europe, the United States
and Asia is managed by personally liable partners. With a firm grasp
of our traditions, we have more than 1,100 staff driving our business
into the future. To find out more, visit www.berenberg.com.

Contact:
Karsten Wehmeier Head of Corporate Communications Tel. +49 40 350
60-481 Email: Karsten.Wehmeier @Berenberg.de