Annual Report 2013

The generally positive development of the labour market in the federal state of Brandenburg in recent years continued on 2013. Since 2003, the unemployment rate has been falling continuously in the federal state from 18.8 % in 2003 to an average of just 9.9 % in 2013. However, economic growth in Brandenburg was still too weak in 2013 in order to continue the successful increase in jobs that was seen in previous years. For the first time in seven years, the number of people in jobs did not increase in the federal state of Brandenburg. Employment fell by 0.4 % against the previous year after the number of people in jobs had risen only moderately in previous years since 2010. What deserves special mention is the fact that the continued positive development of employment figures on a nation-wide level in 2013 was solely due to increases (0.6 %) in the old federal states (without Berlin) whilst employment fell by 0.3 % in the new federal states (without Berlin).

In 2013, ILB pledged a total volume of EUR 1,326m. This marked a significant increase in funding and support programmes by EUR 286m or 28 % against the previous year, i.e. 2012.

Business in 2013 can be characterised as follows:

• In 2013, ILB recorded its third highest promotion result of the last ten years.
• Strong demand was seen for managed products as well as ILB‘s own products; the volume pledged increased significantly against the previous year for both segments (managed products: EUR 37m, ILB‘s own products: EUR 250m).
• The strongest drivers included, for instance, strong demand for products from the Brandenburg loan family. The volume pledged almost doubled by around EUR 247m to EUR 515m against the previous year.
• The importance of ILB‘s own products was thus further strengthened last year and reached a share of around 66 % of the entire volume pledged in 2013.
• One area of particular importance in the field of managed business was, for instance, the implementation of the programme to address the damage caused by the flood of the river Elbe in summer of last year where a total of around EUR 28m was pledged. Another important new programme is the “development of the broadband infrastructure” in the federal state of Brandenburg (volume pledged: around EUR 17m). The development of child care facilities as a goal of the federal government and the related implementation measures have successfully begun with around EUR 17m pledged in 2013.

The quality and volume of ILB‘s securities portfolio were further increased in order to achieve a sustainable consolidation of the interest revenue from this business and to address regulatory requirements with a view to liquidity management in order to comply with the new liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR).