LBBW presents figures for the first quarter 2010

April 29^th, 2010

Despite the still difficult environment for banks, Landesbank Baden-Württemberg (LBBW) achieved a positive result in the first quarter. The consolidated profit after taxes amounted to EUR 136 million as of 31 March 2010 (previous year: EUR 236 million).

The net interest income rose by 20.7 per cent to EUR 555 million. In addition to a solid customer business, the increase reflects, amongst other, a decline in expenses for liquidity and refinancing due to spread tightenings.

The allowances for losses on loans and advances was increased by 48.6 per cent to EUR 135 million. LBBW is thus paying heed to the difficult economic environment.

The net commission income declined markedly by 71.9 per cent to EUR 66 million. Compared to the previous year, nonrecurrent income from the strong brokerage business in the period under review recorded a decrease. Moreover, the net commission income was burdened by the pro-rata guarantee fee for the risk shield in the amount of approx. EUR 85 million.

The net trading income declined by 68.5 per cent to EUR 59 million compared to the previous year. It was not possible to repeat the good results from interest-rate trading of the previous year.

The other operating income rose by 9 to EUR 44 million.

Compared to the first quarter of the previous year, it was possible to reduce administrative expenses slightly, i.e. by 2.6 per cent. This was mainly due to lower advisory and legal costs. Personnel expenses remained at the previous year’s level.

The net income from investment securities improved to EUR 35 million owing to reversals of impairments and securities. In the previous year, a loss of EUR 9 million had to be reported for this item.

The operating income of the first quarter thus fell by 49.8 per cent, summing up to EUR 181 million. After deducting the scheduled restructuring expenses in the amount of EUR 25 million, this resulted in a consolidated income before tax of EUR 156 million. Tax expenses amounted to EUR 20 million. The consolidated profit for the period totalled EUR 136 million as of 31 March 2010.

Figures of the LBBW Group for the first quarter 2010

Differences result from rounding.
Changes in per cent are based on exact figures.