NET REVENUES for the quarter were € 5.4 billion, after mark-downs in Corporate Banking & Securities (CB&S) of € 2.3 billion, compared to net revenues of € 8.8 billion in the second quarter 2007.

The Corporate and Investment Bank (CIB) recorded net revenues of € 2.9 billion, compared to € 6.0 billion in the second quarter 2007.

In CB&S, net revenues were € 2.2 billion, after mark-downs of € 2.3 billion, compared to net revenues of € 5.3 billion in the second quarter 2007. In Sales & Trading (Debt and other products), we reported net revenues of € 602 million, compared to € 2.9 billion in the second quarter 2007, after mark-downs in the current quarter of € 2.1 billion. These mark-downs were as follows: residential mortgage-backed securities (€ 1.0 billion), monoline insurers (€ 0.5 billion), commercial real estate (€ 0.3 billion, including specific hedges), and impairment losses on available for sale assets (€ 0.2 billion). Revenues in credit trading also declined year-on-year. These reductions more than offset year-on-year revenue growth in foreign exchange, money markets and interest rate products. In Sales & Trading (Equity), revenues were € 830 million versus € 1.4 billion in the second quarter 2007, primarily reflecting lower revenues in equity derivatives, due to lower customer activity in structured products and persistent difficult conditions in correlation trading, which more than offset year-on-year revenue growth in prime services. Advisory revenues were € 125 million, versus € 256 million in the second quarter 2007, reflecting lower levels of merger and acquisition activity. Origination revenues were € 266 million, versus € 638 million in the second quarter 2007, reflecting mark-downs of € 200 million in leveraged finance and lower levels of market activity in equity issuance. Net revenues for the second quarter 2008 included a gain of € 13 million from changes in the credit spreads on certain of our own debt on which we elected to use the fair value option. 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 was slightly above € 100 million.

In Global Transaction Banking (GTB), net revenues were € 671 million, up 2 % versus the second quarter 2007, primarily reflecting revenue growth in Trade Finance and investment income.

In Private Clients and Asset Management (PCAM), net revenues reached € 2.4 billion, versus € 2.6 billion in the second quarter 2007.

In Asset and Wealth Management (AWM), net revenues were € 962 million, down 16 % versus the second quarter 2007, reflecting lower fee and commission income due in part to the impact of deteriorating market conditions, and revenues arising in the prior year quarter from the sale of business activities and investments.

In Private & Business Clients (PBC), net revenues were € 1.5 billion, up 2 % versus the second quarter 2007. Brokerage and portfolio/fund management revenues were lower than in the prior year quarter, reflecting less favorable conditions in equity markets, but this development was offset by growth in revenues from loans, deposits, insurance brokerage and payments and account services.

In Corporate Investments (CI), net revenues were € 296 million, up 14 % versus the second quarter 2007, primarily reflecting gains on partial sales from our industrial holdings portfolio and from the disposal of other investments, which were in part offset by negative mark-to-market adjustments on the valuation of our option to increase our stake in Hua Xia Bank in China. Dividend income in the current quarter was € 111 million, down from € 130 million in the prior year quarter.

PROVISION FOR CREDIT LOSSES was € 135 million, versus € 81 million in the second quarter 2007. This development reflects lower releases and recoveries within CB&S, together with higher provisions in PBC, which in turn mainly reflect that division’s organic growth in consumer finance, principally in Poland, and increased credit costs in Spain.

NONINTEREST EXPENSES were € 4.6 billion in the quarter, down 23 % from € 6.0 billion in the second quarter 2007. Compensation and benefits were € 2.7 billion, down 31 % versus the second quarter 2007, primarily reflecting lower accruals for performance-related compensation in light of lower operating results. Our variable compensation reflects both Group and segmental performance, and the second quarter 2008 variable compensation expenses included adjustments to accruals reflected in segmental results because of the lower performance of the Group. General and administrative expenses were € 1.8 billion, down 14 % versus the second quarter 2007, reflecting foreign exchange movements, lower litigation-related expenses and cost containment initiatives. Policyholder benefits and claims were € 119 million, up from € 27 million in the second quarter 2007, primarily reflecting provisions for liabilities to policyholders for the closed book insurance business acquired from Abbey Life, in respect of which an offsetting revenue amount was included in Other products in CB&S.

INCOME BEFORE INCOME TAXES was € 642 million in the second quarter 2008, versus € 2.7 billion in the second quarter 2007. Pre-tax return on average active equity was 9 %. Per our target definition, which excludes certain significant gains of € 242 million in the current quarter and € 131 million in the second quarter 2007, income before income taxes would be € 404 million compared to € 2.6 billion in the prior year period. Pre-tax return on average active equity per our target definition was 5 %, versus 34 % in the second quarter 2007.

NET INCOME in the quarter was € 645 million, versus € 1.8 billion in the second quarter 2007. A tax benefit of € 3 million was recorded in the quarter, versus a tax expense of € 922 million in the second quarter of 2007. The net benefit in the current quarter was mainly driven by the geographic mix of income, successful resolution of outstanding tax matters and an offsetting tax charge related to share-based compensation as a result of a decline in our share price. Diluted earnings per share were € 1.27, versus € 3.60 in the second quarter 2007.

THE BIS TIER 1 CAPITAL RATIO, reported under Basel II, was 9.3 % at the end of the quarter, up from 9.2 % at the end of the first quarter 2008 and versus 8.4% (reported under Basel I) at the end of the second quarter 2007. At the end of the quarter, risk-weighted assets were € 305 billion, up from € 303 billion at the end of the first quarter 2008. Tier 1 capital at the end of the quarter was € 28.3 billion. In the second quarter 2008, we also made a dividend accrual equivalent to 25 % of the annual dividend payment per share for 2007, as was the case in the first quarter, bringing the cumulative dividend accrual for the first half of 2008 to € 2.25 per share. Total assets at the end of the quarter were € 1,991 billion, a reduction of € 159 billion during the quarter, primarily reflecting a decrease in positive market values and reductions in repo and stock borrow assets (total assets of prior periods have been revised to be consistent with current presentation; for more details please refer to the Basis of Preparation on page 44 of this document). We also completed our full year 2008 issuance plan during the quarter. In the first half of 2008, we raised a total of € 40 billion of funding with maturities in excess of one year.