Shareholders´ Meeting of WestLB AG Approves €1.25 Billion Capital Increase
Following the recommendation of the Supervisory Board at the end of November, the Shareholders´ Meeting of WestLB AG approved a capital increase of €1.25 billion on December 11, 2002. The increase, which is scheduled for December 31, 2002, will be supported by the owners in proportion to their respective shareholdings in the Bank. For this purpose the Meeting approved an authorised capital of €166.5 million with an issue premium of 750%. As a result the core capital ratio of WestLB AG amounts to 6.3%.
The capital increase will contribute towards further enhancing the profitability and corporate value of WestLB AG. Chairman Jürgen Sengera commented: "We view the capital increase as a mark of confidence in the future policy of WestLB AG on the part of our owners." In view of the fact that the public guarantees (institutional liability and guarantor liability) will cease to apply from mid-2005, WestLB AG is currently repositioning itself with a view to improving its overall profitability. The Bank is focusing on increasing the return on equity, improving the cost-income ratio and strengthening the core capital ratio on a sustained basis.