- Operating result up approx. 50%, approx. 28% improvement in operating income
- New business climbs to €3.8 billion (+ 61%)
- Strong start for Real Estate Structured Finance and Savings Bank units
Mainz, September 5, 2006 – Westdeutsche ImmobilienBank (WIB) increased its operating result before risk provisions and income taxes to €41.7 million in H1 2006. This represents an improvement of approximately 50% on the prior-year result adjusted for the one-time effects of capital market transactions.
The increase is primarily due to operating income, which rose 28% to total €77.9 million. €73.3 million of this figure was attributable to net interest income, which climbed 18% year-on-year. Net commission income, which was impacted by substantial commission payments in the private residential financing area, increased to €1.4 million (previous year: €-0.2 million). Income from investments amounted to €3.2 million (previous year: 0).
At €36.4 million, administrative expenses were up slightly (+ 7%) year-on-year. Despite the assumption of additional functions within the WestLB Group and corresponding staff increases in selected areas in 2005, the rise in administrative expenses was kept in check by focused cost management.
“The results show that we are on the right track. Our sales activities and process optimisation measures are a success. We shall continue systematically on this path and expect to beat last year’s strong results in 2006”, said Hubert Beckmann, Chairman of the Managing Board of WIB, commenting on the half-year results.
WIB’s increased income and strict cost management led to a further improvement in its cost-income ratio (CIR) in the first half of the year, which fell from 52% at the end of 2005 to 47%. The Bank’s total assets amounted to €23.2 billion as at June 30, 2006, up €0.3 billion on December 31, 2005. As at June 30, 2006, WIB employed 454 people (year-end 2005: 447).
Strong Growth in New Business
The Bank’s new business clearly exceeded its already strong performance for the previous year, rising 61% to €3.8 billion in the first half of the year. €1.8 billion (previous year: €1.2 billion) of new commitments were to international commercial real estate clients, 53% more than in the prior-year period. Domestic commercial business also did extremely well, climbing 84% to €1.4 billion (previous year: €0.8 billion).
The private residential financing unit recorded a rise of 43%, for a total volume of approximately €0.6 billion (previous year: €0.4 billion). The bulk of these transactions were brokered by partners. Using ImmoBank direct, customers are able to take out construction finance via the Internet and by telephone.
“New business did extremely well in H1 2006, with all units contributing to the clear rise in volume. A further year-on-year rise can be expected in the period up to the end of 2006, representing another record for the Bank”, emphasised Claus-Jürgen Cohausz, member of the Managing Board.
New Real Estate Structured Finance and Savings Banks Units Get Off to a Strong Start
To provide property investors with direct access to the capital markets, WIB formed a new Real Estate Structured Finance (RESF) unit at the beginning of the year. This acts as an interface to the capital markets, providing advisory services for complex big-ticket property finance/transactions involving the capital markets. The business, which is operated together with WestLB, got off to a strong start.
In addition, WIB is intensifying its advisory capacity and service for savings banks with the formation of a separate Savings Banks department. WIB, as a partner in the Savings Bank Group, provides a wide range of commercial and private real estate services for the various institutions. Cooperation with the savings banks is developing extremely well, and the number of loan inquiries is increasing continuously.
WIB Planning Change in Legal Form
Subject to the approval of the Rhineland-Palatinate state parliament, WIB will change its legal form to that of an Aktiengesellschaft (German public company) with effect from January 1, 2007.
Hubert Beckmann: “It is only logical that a modern, successful bank with a large proportion of international customers should also adopt a modern institutional form. By changing our legal form to that of an Aktiengesellschaft, we are subjecting ourselves to the strict requirements of today’s capital market, the German Corporate Governance Code, which makes us even more attractive for international customers in particular. We are convinced that the new legal form will make WIB fit for the future and create a platform for further growth.”
WIB is a wholly-owned subsidiary of WestLB and the specialist for all real estate finance and transactions within the WestLB Group. In addition to its locations in Mainz (headquarters) and Münster, it has branches in Düsseldorf, Hamburg, Munich and Mannheim (Germany) and London, as well as representative offices in Madrid, New York, Paris and, in future, Warsaw.
Westdeutsche ImmobilienBank
Press and Public Relations
Große Bleiche 54
55116 Mainz
Germany
Telefon: + 49 6131 9280 - 7385
Telefax: + 49 6131 9280 - 7205