Germany’s WestLB has revealed a solid Q1 2010, posting pre-tax group profits of €72mn ($90mn).
The bank has put a significant emphasis on its corporates and structured finance deals in securing a successful Q1 performance, claiming that its “firm footing in the customer business is nowhere more apparent than in [this area]”, which saw a increase in profits of over €10mn (US$12.5mn), ending Q1 at €85mn (US$106.5) before tax, up from €71mn (US$88.95) in the same period last year.
However, profits are significantly down from the €250mn (US$313.9mn) pre-tax group profits posted in the same quarter of 2009, a fact that the bank attributes to exceptionally favourable market conditions and valuation effects at the time.
The institution’s core bank profit before tax reached €117mn, again down from Q1 2009’s €408mn, but in line with similar Q1 reports from other major banks.
Dietrich Voigtländer, chairman of the bank’s managing board, says: “We are satisfied with the start we have made in 2010. Our chosen path of systematically reducing risk and focusing fully on our customer business is paying off.
“WestLB is now a profitable bank with a stable earnings base derived from business with its customers.”
Voigtländer also speaks optimistically about the bank being back on course: “With the transfer of non-essential strategic activities, the bank has stabilised itself on a sustainable basis. WestLB is now a lean, efficient bank with a much improved risk profile and a clear focus on the customer business. The solid start to the year confirms that WestLB is on the right track.”
Last Updated May 21, 2010
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