The world economy. The global economic climate, calculated on the basis of the ifo index, remained at a favorable level in the second calendar quarter of 2007 (third quarter of the fiscal year), thus maintaining a position that is well above the long-term average. The overall assessment of the economy remains very positive, with confidence having fallen only slightly in the period under review. On the whole, forecasts for the coming six months have continued to improve and would appear to suggest a robust world economy in the second half of 2007.

Developments in the retail banking and retail sectors. The solid economic environment has provided a favorable backdrop for the retail banking sector and the retail industry, both of which are looking to invest in order to square up to the challenges of continued pricing pressure and customer-focused competition throughout the established markets of Western Europe and North America. In parallel, progressive economic growth in the emerging markets of Eastern Europe, Latin America and Asia/Pacific/Africa has provided fresh impetus for both industries in these geographical regions.