050 Chap. 2 GROUP MANAGEMENT REPORT BUSINESS DEVELOPMENT from a level of 2,932 m at year-end 2006. The main reason for this rise was the strong demand for so-called constant loans with fixed interest rates and redemption instalments, one of Badenia's forward loan products. Deposits under building society contracts, how- ever, decreased to 4,315 m, down from 4,361 m at year-end 2006. Ordinary investment income (net) fell from 232 m to 222 m as a result of decreasing interest income. This development was attributable to the decreased portfolio of loans under building-society contracts and to a lower interest level under new tariff models. Fol- lowing an increase in risk provision in credit business compared to the previous year and a decrease in real- ized capital gains, the total investment income (net) dropped from 224 m to 209 m. As a result of lower market values of fixed-in- come securities, the revaluation reserve decreased from -4 m to -10 m. The interest surplus improved from 103 m to 107 m. In this context the decrease in interest expend- iture under building-society business by far exceeded the drop in interest income. The commission result of 15 m remained below the previous year's level of 17 m. The operat- ing expenses of building-society business rose from 71 m to 72 m. Primarily this was attributable to higher expenses caused by the consolidation of the Group's mortgage business in Badenia. The income from the contribution of AMB Generali Asset Managers into Generali Investments, which is included in other income/expenditure, amounted to approx. 30 m for the full year, taking into account the value development of the share in Generali Invest- ments measured at equity. Primarily due to markedly higher risk provisions and a decrease in interest income, the profit before tax and finance costs dropped to 38 m (previous year: 61 m). The tax expenditure, which in the previous year had been influenced by the capitalization of the corporation tax credit, reduced further as a result of high tax-free income. After deduction of finance costs, the contribution of the financial services segment to the net profit thus dropped from 40 m to 36 m. Report on subsequent events After the close of the business year, financial markets witnessed substantial turmoil in January and February 2008 in the context of the so-called sub- prime crisis. The direct repercussions of this crisis on the AMB Generali Group are negligible. Following the substantial correction of stock markets at the begin- ning of 2008, however, write-downs in the first quarter 2008 cannot be excluded. Beyond this, no events of material importance occurred after the close of the business year.