Mainz, 15 June 2005 – Westdeutsche ImmobilienBank (WIB) has begun 2005 with healthy results. At €24.4 million, its operating result before risk provisions and remeasurement gains more than doubled year-on-year (Q1 2004: €10.6 million). Total assets increased to €22.4 billion (31 December 2004: €21.3 billion). Net interest income made a key contribution to this healthy start, climbing by around 57% to €41.5 million in the first quarter (previous year: €26.4 million). This positive trend is expected to continue in the results for the first six months.

Net commission income including net income on financial operations totalled €-0.2 million (previous year: €0 million).

WIB's international business was particularly encouraging, with new business improving substantially to €792 million (previous year: €81 million). The USA, the UK and France accounted for the highest proportion of financing. National Investors also increased their new business in the first quarter by 61% to €363 million (previous year: €225 million). This also reflected WIB's intensified cooperation with the savings banks in North Rhine-Westphalia. The Private Customers department, which sells standardised construction financing via cooperation partners and via the ImmoBank direkt Internet platform, was almost on a par with the previous year at €167 million (Q1 2004: €179 million).

"Our results for the first quarter of 2005 show that we are on the right track with our new positioning. The increase in our results and the growth in international business have put WIB back on a successful path," said Dieter Groh, Chairman of WIB's Managing Board.

In fiscal year 2004, WIB completed its positioning as a centre of competence for real estate financing within the WestLB Group. This new focus is based on three core business areas: real estate financing in Germany and abroad, savings banks business and mortgage Pfandbriefe.

2004 annual financial statements show healthy operating result, but impacted by risk provisions

 WIB has reported a net loss for fiscal year 2004 of €135.7 million (previous year: net income of €2.7 million) due to the impact of comprehensive risk provisions. At €49.1 million, the operating result before risk provisions and income taxes was up significantly on the previous year (€16.3 million). Net interest income increased by 61% to €115.5 million (previous year: €71.6 million).

In contrast, net commission income including net income on financial operations fell to €1.1 million (previous year: €3.4 million). This was mainly due to increased brokerage commissions for the Private Customers department's loan brokerage business. General administrative expenses including depreciation and amortisation rose to €79.4 million (previous year: €67.8 million). The key factor here was non-staff expenses, which increased by 14% to €29.5 million due to the bundling of WestLB AG's loan portfolios with WIB.

WIB increased its risk provisions to €103.2 million (previous year: €95.3 million) to reflect the difficult conditions in Germany's real estate markets. This figure was also impacted by the assumption of expenses from Westdeutsche ImmobilienHolding amounting to €48.6 million. WIB's equity base was further strengthened by the injection of €300 million. Its core capital ratio was 7.3% at the end of the year.

"The systematic streamlining of our balance sheet in 2004 and the capital increase have enabled us to lay the foundations for WIB's continued growth. We are confident that we will close 2005 with healthy results," said Klaus Neuhaus, member of WIB's Managing Board.

The Bank's cost-income ratio improved to 61.9% (previous year: 78.2%), while the number of employees fell slightly in 2004 to 460 (previous year: 476).

2004 new business hit by weak real estate markets

At €3.5 billion, WIB's volume of new business was around 26% below the previous year (€4.7 billion). The Bank continues to have a strong presence on the international markets. Business with international investors accounted for 45%, almost reaching the previous year's level. WIB's target markets are North America, the United Kingdom and continental Europe. Its international commitments are performing well. As in the previous year, business with national investors accounted for 35%.

New business in the Private Customers department decreased to around €700 million (previous year: around €800 million), accounting for 20% of total business. Heavy pressure with regard to both competition and terms and conditions due to the significant expansion of the direct banks is reflected in private customer business in particular.
WIB is expanding its existing successful partnerships with savings banks more strongly than before, so as to jointly regain market share in this segment.

Focus on core business

WIB continued to consolidate its equity investments in 2004, bundling real estate services within Assetis GmbH. In 2005, Bilfinger Berger acquired 70% of the shares in this company, which in future will operate as "EPM Assetis". WIB retains a 30% interest.

First jumbo Pfandbrief successfully placed

WIB has positioned itself well with regard to the changes in refinancing conditions after the abolition of the Anstaltslast (Maintenance Obligation) and Gewährträgerhaftung (Guarantee Obligation) in 2005 by broadening its refinancing base, and has tapped into new investor groups. The first five-year jumbo mortgage Pfandbrief totalling €1 billion was placed in the past fiscal year and increased by €250 million to €1.25 billion on 1 June 2005 due to strong demand.

New Chairman of the Managing Board

Hubert Beckmann will become Chairman of WIB's Managing Board from 1 October 2005. Hubert Beckmann has been a member of the Managing Board of Ostsächsische Sparkasse Dresden since 1998. Prior to this, he was a member of the Managing Board of Westdeutsche Landesbank (Ireland) plc. from 1996 to 1998. From 1988 to 1996, he held various positions in WestLB's Investment Banking division. In particular, Hubert Beckmann will focus on intensifying cooperation with the savings banks in association with WestLB AG.

WIB was founded on 1 June 1995 as the subsidiary of three Landesbanken (German state banks) and celebrates its tenth anniversary this year. All of WIB's shares were acquired by WestLB AG in 2003.

Westdeutsche ImmobilienBank
Press and Public Relations
Große Bleiche 54
55116 Mainz
Germany

presse@westimmobank.com

Telefon: + 49 6131 9280 -7222/7385
Telefax: + 49 6131 9280 - 7209