A4 für Copyshop GB.indd - Bayerische Landesbank

Key ratios of the business area
Gross income was generated in equal measures domestically and abroad. This illus-
trates the strong international orientation of the business area and the great impor-
tance attached to activities in the foreign markets. Great Britain, America and France
are among the strongest. In these markets, the Corporate Banking and Structured
Finance Divisions generated roughly 50 percent each of total income.
At around EUR 33 billion, risk positions were down by 14 percent in comparison to
2003. Net interest income also fell against 2003 as a consequence of this reduction in
risk assets. Net commission income remained more or less unchanged in comparison
to the previous year’s level.
Qualitative / structural enhancement of earnings, evident from the transactions carried
out in 2004, was a decisive factor in the success of the business area.
Specific examples
The following transactions exemplify the success in the corporate financing business
in 2004:
DaimlerChrysler
North America Corporation
1,000,000,000 Euro
Benchmark Bond
Joint Bookrunner
Bayerische Landesbank
January 2004
Corporate Banking
Slovenské Elektrárne
350,000,000 Euro
Revolving Credit and Term
Loan Facility
Mandated Lead Arranger
Bayerische Landesbank
April 2004
Edeka Zentrale AG & Co. KG
600,000,000 Euro
Term Loan and Revolving
Credit Facility
Mandated Lead Arranger
Bayerische Landesbank
June 2004
Hafslund
400,000,000 Euro
Dual Currency Revolving
Credit Facility
Mandated Lead Arranger
Bayerische Landesbank
June 2004
In 2004, margins in credit business experienced increased pressure. In cases where a
margin commensurate with risk would have been impossible to achieve, the transac-
tion was simply not pursued. Complex structured loans offered as part of all-in-one
financing solutions represented a core focus, while using the credit product as a strate-
gic facility (or anchor) was also important. All in all, cross-selling potential arising from
customer relationships was crucial in the activities of the business area, particularly
with regard to capital market products or the range of structured special financing
instruments.
In 2004, the business area successfully transformed itself from being a simple lender
to a prominent provider of structured and arranged syndicated loans. Thus, on the
domestic market, BayernLB was mandated lead arranger for Wacker Chemie GmbH’s
EUR 200 million syndicated credit facility, while it acted as arranger / syndicated agent
for a revolving credit facility with a volume of USD 200 million completed by the
US-based Calpine Generating Co., LLC.
BayernLB – our company
35
} Cross-selling
activities reinforced