Owners Strengthen WestLB AG´s Capital Base
Managing Board Expects Annual Loss of Approximately € 1 Billion for 2007
According to the present status of portfolio valuations in the course of the preparation of the annual financial statements for 2007, the Managing Board of WestLB AG expects to report an annual loss of approximately € 1 billion for 2007 at Group level. Additionally, due to the present status of the portfolio valuations, the Managing Board expects non-permanent write-downs of almost € 1 billion.
In order to safeguard the future development of the Bank, the State of North Rhine-Westphalia, the regional associations and the savings banks associations will balance out the annual loss of approximately € 1 billion. The burden from non P&L-relevant valuations will also be absorbed up to an amount of € 1 billion. The precise details of the capital increase, as well as the timetable for its implementation, will be decided shortly.
The measures taken confirm that the Bank has the full support of its owners in line with the 10-point declaration issued on December 12, 2007. The task forces have begun their work, as agreed in the above declaration. The owners are agreed that, in addition to the measures decided today, the restructuring process, in particular, now has to be initiated and the strategic realignment of the Bank accelerated. Furthermore, they support the continuation of the detailed talks between WestLB AG and Helaba in order to make an active contribution towards the process of consolidation in the Landesbank sector.
The capital increase will enable the Bank to cushion the effects of the persistently negative developments on the international capital markets.
Alexander Stuhlmann, Chairman of the Managing Board of WestLB AG, said: “Our owners have clearly demonstrated that they are fully committed to supporting the Bank.”