History
2006
WestLB returned to profitability in its first full year under its new business model, despite burdens from the past. All business segments contributed to the improved result. Client business and income from the alliance with the Sparkassen rose significantly. At the same time, WestLB strengthened its capital resources with equity capital increasing by €2 billion and an improved core capital ratio – from 6.9% to 8.3%.
Dr. Thomas R. Fischer, Chairman of the Managing Board, said: “WestLB has fought its way back to recovery despite difficult conditions. We reached our ambitious profit target for the year and kept the promise we made to our owners. We also laid the foundations for future growth. We concluded strategic partnerships, reorganised our investment banking operations and made a successful return to the private banking business. Following the stabilisation of WestLB, the transformation process is now well under way to make us a profitable, client-driven bank.”
Back to top2005
On 19 July, state guarantees are abolished and a new era begins for the Sparkassen and Landesbanks in Germany. WestLB receives unguaranteed credit ratings of A– or equivalent from the major rating agencies. As the abolition of state guarantees begins to change the landscape of German banking forever, WestLB faces an incredibly exciting opportunity. With our new business model and our extensive customer base, the Bank is ideally placed to build on its strong position in the German banking sector, to make best use of our international network, and to hit ambitious profit targets of €600 million for the current year.
WestLB acquires Berlin-based Weberbank, strengthening its position in the German private banking business.
Back to top2004
At the beginning of the year, Dr. Thomas R. Fischer joins the Bank as the new Chairman of the Managing Board. After losses in 2002 and 2003, he launches a comprehensive restructuring programme which focuses on a new business model that positions WestLB as a European commercial bank with a presence in the major international financial centres and firm roots in NRW.
The Bank disposes of non-core investments, tightens its risk management ahead of losing state guarantees, and returns to operating profit. However, more than a decade after the initial complaint, WestLB AG has to repay the Wohnungsbauförderungsanstalt Nordrhein Westfalen’s (Wfa) capital of €1.4 billion to the State of NBW, as required by the European Commission in order to settle the case. The one-off effect impacts the profit and loss account for 2004.
During the year, the Bank’s Sparkassen shareholders inject €1.5 billion of new capital. The two Sparkassen associations now hold a combined majority share in WestLB AG. The State of NRW remains a major shareholder in WestLB through NRW.BANK.
Back to top2003
At the beginning of March, the European Court reverses the decision of the European Commission of July 1999 in the Wfa proceedings on the grounds of inadequate substantiation. The Commission appeals against the decision on the basis of revised, lower figures for alleged state aid.
WestLB acquires the shares held by Landesbank Baden-Württemberg (LBBW) and Landesbank Rheinland-Pfalz (LRP) in Westdeutsche ImmobilienBank (25% each). The acquisition of 100% of the shares allows for unified management of all real estate activities in the WestLB Group.
Together with three other banks and the International Finance Corporation (IFC), WestLB, by now one of the leading project finance banks in the world, develops the Equator Principles. By adopting these, WestLB commits itself to funding projects only if project sponsors take into account the environmental and social standards laid down in the Principles.
On 2 July, the Supervisory Board unanimously appoints Dr. Johannes Ringel as the new Managing Board Chairman following the resignation of Jürgen Sengera. Dr. Ringel remains in office until the Supervisory Board appoints a long-term successor.
Back to top2001–2002
The German Federal Government and the European Commission reach an agreement on the abolition of institutional liability and guarantor liability for the public-law banking sector. The decision follows earlier complaints from private sector banks, alleging unfair competitive advantage for the public sector.
With effect from 2002, WestLB responds to this decision by dividing the Bank’s activities into two parts: the main successor company, WestLB AG, takes over the commercial activities, while the spun-off Landesbank NRW (later renamed NRW Bank) fulfils the regional development banking remit. WestLB AG is now fully compliant with EU competition law and is now a joint-stock company (i.e. equivalent to a plc). WestLB’s shareholders remain the State of NRW, the two major local government bodies of the region, and the Sparkassen associations.
On 31 August 2001 Dr. H.C. Friedel Neuber retires. On 1 September, Jürgen Sengera is appointed as the new Chairman of the WestLB Managing Board.
WestLB Group is by now represented in all the major financial centres of the world. The main focus of the international activities is on Europe, where the Bank is represented in 15 countries. WestLB maintains a presence in more than 35 countries worldwide.
Back to top1992–1999
On 1 January, the State of NRW transfers the Wfa to WestLB in the form of a non-cash contribution. This results in a capital increase for the Bank.
Despite the transaction receiving prior approval from banking supervisors, in 1995 the Federal Association of Private-Sector Banks files a complaint with the European Commission against the price paid by WestLB to the State of NRW in return for the capital contribution of the Wfa assets, and alleging illegal state subsidy.
In 1999 the European Commission concludes that the transfer of the Wfa to WestLB constituted illegal state aid. WestLB, the State of NRW and the German Federal Government file actions to appeal against the Commission’s decision through the European Courts.
Meanwhile, WestLB continues to expand overseas and diversify into more commercial businesses.
Back to top1986
WestLB is represented in 13 locations: London, Luxembourg, Paris, Zurich, Moscow, New York, Rio de Janeiro, Toronto, Hong Kong, Tokyo, Peking, Melbourne and Beirut.
Back to top1975
The representative office in New York is converted into a full branch. This is followed by a branch in Tokyo (1980) and Hong Kong (1983).
Back to top1973
WestLB opens a branch in London, making it the second German bank to be represented in the City.
Back to top1972
WestLB’s transformation from a regional Landesbank into a fully international player offering its clients a wide selection of financial solutions begins as branches and representative offices are opened abroad. WestLB International S.A. (Luxembourg) is the first foreign subsidiary and is intended to give the Bank’s German customers and the NRW Sparkassen access to the European market.
Back to top1969
Westdeutsche Landesbank Girozentrale (WestLB) is established as a result of a merger between Rheinische Girozentrale und Provinzialbank, Düsseldorf, and Landesbank für Westfalen Girozentrale, Münster. The new public-law credit institution’s head offices are in Düsseldorf and Münster. WestLB’s opening balance sheet lists total assets of DM28.7 billion, making it Germany’s biggest bank. Employing 5,108 staff, its business activities are still strongly focused on NRW. The Bank has a public sector financing remit and is protected by state guarantees.
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