• Successful first half to 2009: IFRS consolidated result before tax at €42.8 million 
• New business volume increased to €3.1 billion

Frankfurt am Main, 26 August 2009 - Westdeutsche ImmobilienBank AG (WestImmo) can look back on a successful first half of 2009. The bank achieved net interest income of €86.9m in the first six months of the year, after €84.4m in the same period the previous year (+ 3%). The trading result improved sharply, rising 16% to reach €11m (previous year: €9.5m). As syndicate business did not pick up significantly until the end of the second quarter, net fee and commission income was, at €15.9m, below the figure for the first half of 2008 (€18.8m).

The IFRS consolidated result before tax came to €42.8m in the first half of 2009, 29% below the €60.6m for the comparable period in the previous year. The consolidated annual net profit fell from €51m to €30.8m. A key factor in the decline was the increase in the pro rata credit risk provision to -€29.3 compared with -€10.0m in the previous year. -€11m of this was connected with the restructuring of loan-type equity participations in the net income from non-current financial assets. This rise in the risk provision for commercial real estate loans, which is moderate by market standards, generally underlines the reliable quality of WestImmo's loan portfolio. General administrative expenses climbed a modest 1.5% to reach €41.5m (previous year: €40.9m).
Given the worldwide recession and the difficult situation on real estate markets, the half-year results offer a sound basis for the further expansion of the bank’s market position.

“WestImmo shows that the business model of a commercial real estate bank is a viable one. Despite the challenging situation on the real estate markets, we have achieved good half-year results”, commented Peter Knopp, Chairman of WestImmo’s Managing Board, on the figures. “We were continuously active in our target markets and this enabled us to widen our client base and boost our reputation still further.”

On 30 June 2009 the core capital ratio (Tier I ratio) stood at 8.3%, roughly the same figure as at the end of 2008 (8.4%). On a twelve month comparison this key ratio has risen by 0.9 percentage points. The cost/income ratio improved slightly to 36.5% compared with the already low figure for the first half of 2008 of 36.6% on the back of the consistently stringent cost management by WestImmo. The balance sheet total climbed 4.1% to €27.2bn compared with the end of 2008, of which €15.5bn comprised receivables from commercial real estate customers (+3.8%).

New business increased to €3.1 billion

The bank’s continuous presence on the market and its competitive strength are reflected in the figures for new business. In the first half of 2009 WestImmo committed €3.1bn in commercial real estate financing, up 3.3% on the figure for the same period the previous year (€3.0bn). This rise can be largely attributed to an expansion of business with institutional investors in Germany. While the volume of new financing in France and the USA was more or less on a par with the previous year, it fell back in central and eastern Europe. WestImmo’s exposure in Japan, Great Britain and Spain was hampered by the difficult market situation.

WestImmo’s collaboration with the savings banks continues to develop positively. The volume realised in conjunction with partners came to €153m in the first half of the year, 17.5% more than the figure for the same period the previous year. WestImmo participates in commercial real estate financing operations that the savings banks are unable to handle alone due to the size or because of risk aspects and offers the institutions a stake in financing consortiums. Syndication volumes also rose pleasingly. In the first six months alone, savings banks from six German regions participated to the tune of €130m in German commercial real estate lending by WestImmo. This is already well above the figure for the whole of 2008 (€90m).

In its refinancing activities WestImmo issued Pfandbriefe and uncovered bonds in a volume of €2.2bn (previous year: €1.5bn) in the first half of 2009. With this volume of issues WestImmo has already exceeded the volume for the whole of 2008 (€2.0bn) in the first six months of 2009 alone. Given the difficult situation on the capital markets, this issuing volume is a reflection of the confidence that the bank enjoys on the financial markets. After five years, the bank returned as a benchmark issuer with the placement, completed in June 2009, of a mortgage Pfandbrief to the sum of €500m - one of the biggest issues on the Pfandbrief market since the start of the year.

Outlook: Further improvement in earnings capacity, new business expected to reach €6 billion

Management expects the volume of new business to have reached about €6bn by the end of the year. The very positive trend seen so far in the second half of 2009, in which several large-scale real estate financing deals have already been concluded, confirms the Managing Board’s view. WestImmo expects that its operative earnings capacity will continue to develop positively in the remaining months of 2009. Given the uncertain situation on the financial and real estate markets, however, it is not possible to give a concrete earnings forecast for the year as a whole.

About WestImmo

WestImmo is the Centre of Competence for real estate financing and structured real estate transactions in the WestLB group. It has offices in Berlin, Düsseldorf, Hamburg, Mainz, Münster and Munich and is also represented in London, Madrid, New York, Paris, Prague, Warsaw and Tokyo.