Net revenues were € 4.6 billion in the quarter, versus € 9.6 billion in the first quarter of 2007. In Corporate Banking & Securities (CB&S), net revenues were € 880 million, versus € 6.1 billion in the prior year quarter. Revenues in Sales & Trading (Debt and other products) were € 1.3 billion, down from € 3.4 billion in the record prior year quarter, reflecting mark-downs on Commercial Real Estate activities and on Residential Mortgage-Backed Securities, together with significantly lower revenues in the
credit trading business. This development was to some extent counterbalanced by substantial year-on-year revenue growth in foreign exchange and money market trading, core fixed income trading and commodities trading. Revenues in Sales & Trading (Equity) were € 745 million, down from € 1.7 billion in the prior year quarter, reflecting significantly lower revenues in equity derivatives trading and a modest loss in designated equity proprietary trading. Revenues in cash equities were somewhat below the exceptional levels of the prior year quarter, while revenues in prime services were ahead of the prior year quarter. Revenues in Advisory were € 128 million, down from € 250 million in the prior year quarter, while revenues in Origination (Equity) were € 85 million, down from € 146 million, both reflecting lower levels of market activity. Revenues in Origination (Debt) were negative € 1.4 billion, versus € 401 million in the prior year quarter, primarily reflecting the mark-downs in leveraged finance of € 1.8 billion. Revenues for the quarter included a gain of € 77 million from changes in the credit spreads on certain of the firm’s own debt on which the fair value option was used. The application of the fair value option on our liabilities remained unchanged from prior reporting periods. The aggregate gain recorded on our own debt since January 1, 2007 is less than € 100 million, a very modest amount by industry standards.

In Global Transaction Banking (GTB), net revenues were € 661 million, up 8 % versus the first quarter 2007, reflecting growth in client volumes which more than counterbalanced the adverse impacts of lower interest rates and a decline in the U.S. dollar exchange rate.

In Private Clients and Asset Management (PCAM), net revenues were € 2.5 billion, up 1 % versus the first quarter 2007. Revenues in Asset and Wealth Management (AWM) were € 1.0 billion, down 1 % versus the prior year quarter, reflecting modest declines in portfolio/fund management revenues. Revenues in Private & Business Clients (PBC) were up 2 % to a record € 1.5 billion, with growth in revenues from insurance-related products offsetting a decline in brokerage and portfolio/fund management revenues.

Revenues in Corporate Investments (CI) were € 705 million, principally reflecting gains on the sale of shares in Daimler AG, Allianz SE and Linde AG during the quarter, offset by mark-downs, the largest of which was on our option to acquire additional shares in Hua Xia Bank Co. Ltd. in China.

Provision for credit losses was € 114 million in the quarter, versus € 98 million in the first quarter 2007. In PCAM, provision for credit losses was € 125 million compared to € 117 million in the prior year quarter, predominantly reflecting PBC’s strategy of growth in consumer finance. In CIB, net releases were € 11 million, compared to net releases of € 20 million in the prior year quarter.

Noninterest expenses were € 4.8 billion in the quarter, down 25 % from € 6.3 billion in the first quarter 2007. Compensation and benefits expenses were € 2.9 billion, down 32 % versus the prior year quarter, primarily reflecting lower accruals for performance-related compensation in the light of operating results. General and administrative expenses were € 1.9 billion for the quarter, up 2 % versus the prior year quarter. Policyholder benefits and claims were a credit of € 126 million, versus an expense of € 27 million in the prior year quarter, mainly reflecting mark-to-market losses on investments held to back policyholder claims in the closed-book Abbey Life business, purchased in the fourth quarter 2007. In the current quarter, noninterest expenses included € 53 million related to capital injections into certain money market funds in Asset Management.

We reported a loss before income taxes of € 254 million for the quarter, versus income before income taxes of € 3.2 billion in the first quarter of 2007. Per our target definition, which excludes certain significant gains (net of related expenses) of € 854 million in the current quarter and € 252 million in the prior year quarter, the loss before income taxes was € 1.1 billion in the quarter, versus income before income taxes of € 2.9 billion in the prior year quarter. Gains in the current quarter arose predominantly from the aforementioned sales of industrial holdings. Pre-tax return on average active equity was (3) % for the quarter, versus 44 % in the prior year quarter.

We reported a net loss of € 141 million for the quarter, compared to net income of € 2.1 billion in the first quarter of 2007. We recorded a tax benefit of € 113 million, versus tax expense of € 1.0 billion in the prior year quarter. The current quarter tax benefit includes a credit of € 44 million in respect of policyholder tax related to the aforementioned Abbey Life business. Diluted earnings per share were negative 27 cents, versus € 4.28 in the prior year quarter.

The Tier 1 capital ratio, reported for the first time under the Basel II Capital Framework, was 9.2 % at the end of the quarter. The effect of the adoption of Basel II was an improvement in our Tier 1 ratio as the resulting reduction in Tier 1 capital was more than offset by lower risk-weighted assets under Basel II. At the end of the quarter, risk-weighted assets were € 303 billion, including the first quarter effect of higher risk-weighted assets for our leveraged finance loans funded for 180 days or more. Tier 1 capital was € 27.9 billion at the end of the quarter. The positive impact from the conversion of cumulative preferred securities into hybrid Tier 1 capital in the quarter was largely offset by foreign exchange rate movements, the impact of a net loss on retained earnings, and a dividend accrual equivalent to 25 % of the recommended annual dividend payment for 2007.