Dr. Johannes Ringel appointed Board Chairman of WestLB AG -
Supervisory Board decides on cornerstones of the Bank’s future strategy
At today’s meeting, the Supervisory Board of WestLB AG unanimously appointed Dr. Johannes Ringel new Chairman of the Managing Board. Dr. Ringel will fulfil this function until a new permanent successor is appointed by the Supervisory Board. The Managing Board can rely on the Supervisory Board’s full support and confidence in implementing the future strategy.
In another statement, the Supervisory Board commented on the cornerstones of the Bank’s future strategy. The Supervisory Board agrees with the Managing Board that WestLB`s strategy for 2005 should build on three strong pillars. The Bank will be an international commercial bank as well as a competence centre for medium-sized enterprises and the savings banks.
Enclosed please find copies of the Supervisory Board statements.
Gratifying development of profits
The Managing Board reported to the Supervisory Board on a gratifying development of profits in the first five months of the year. Earnings have been boosted considerably and costs reduced further.
According to preliminary figures, operating profits before risk provisions, at approx. € 476 million, not only exceeded the budget but were also up € 350 million on the same period of the previous year. This gratifying development is mainly due to improved net interest income and a further reduction in personnel and operating expenses.
Overall, the Bank’s improved cost base has given it added operational stability. At the same time, earnings have increased, greatly strengthening the Bank’s risk-bearing ability.
Appendix 1
Statement by the Supervisory Board of WestLB AG
Dr. Johannes Ringel appointed Board Chairman
At today’s meeting, the Supervisory Board of WestLB unanimously appointed Dr. Johannes Ringel new Managing Board Chairman of WestLB. Dr. Ringel will fulfil this function until a new permanent successor is appointed by the Supervisory Board. Thanks to his excellent international track record and his knowledge of WestLB AG’s complete product range, Dr. Ringel is eminently suited to position WestLB in the market. He will fulfil his tasks with the assistance of his fellow Board members, Dr. Adolf Franke, Klaus-Michael Geiger, Dr. Manfred Puffer, Robert Restani and Gerhard Roggemann, whose responsibilities have already been defined by the Managing Board Chairman.
The Supervisory Board of WestLB AG is confident that the strategic cornerstones defined together with the Managing Board will be implemented successfully. In performing these tasks, the Managing Board can rely on the Supervisory Board’s full support and confidence.
The prime objective of the Banks‘ Supervisory Board, Managing Board and owners is to increase further the company value and to ensure that the Bank optimally fulfils its tasks.
Appendix 2
Statement by the Supervisory Board of WestLB AG
WestLB 2005: International bank with regional roots
- Cornerstones of the Bank’s future business strategy -
At today’s meeting, the Supervisory Board of WestLB AG addressed the Bank’s future strategy. The focus was on defining the strategy development process as well as the cornerstones of a future structure that will allow WestLB to maintain and expand its competitive market position beyond 2005, the year in which institutional liability and guarantor liability will be abolished.
The shareholder and employee representatives on the Supervisory Board agree with the Managing Board that WestLB should implement a strategy building on three strong pillars in 2005. The Bank will be an international commercial bank as well as a competence centre for medium-sized enterprises and the savings banks.
In its capacity as an international commercial bank, WestLB AG will clearly focus on Europe and have a presence in the world’s leading financial centres. The Bank’s range of services will include capital market activities, private equity, asset management, corporate finance, structured finance, lending and real estate finance.
As a partner to medium-sized enterprises, WestLB will build on the strengths of the region. Its target customers will be large medium-sized companies, financial institutions and public-sector clients. The Bank will focus on serving domestic customers abroad, providing export finance and offering innovative products to enhance the competitiveness of North Rhine-Westphalian companies. In this function, WestLB will benefit from its status as an international commercial bank.
As a competence centre for the savings banks, WestLB will use its global product know-how to provide the savings banks with attractive, profitable products. These include receivables trading / ABS transactions, corporate finance products and international commercial activities. In the coming months, WestLB will put this pillar in more concrete terms together with the savings banks.
The three pillars of "WestLB 2005" will mutually support and strengthen each other. They will give WestLB the sustained operational stability it needs to obtain a good rating and, hence, a top position in the market even after the abolition of institutional liability and guarantor liability.
Going forward, these strategic pillars will be developed and refined, while all economic and financial implications will be identified.
WestLB AG will strictly focus on profitability and an appropriate risk/return ratio in all business segments.
These three strategic pillars will provide the safe business that WestLB needs to successfully plan and master the challenges of the market with the support of its owners.