Annual Report 2002 (pdf, 1319K) - WestLB

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Targets — Business segments which have
delivered above-average performance will
be expanded in the context of the Bank’s
profitability-driven business policy.
On the Way Forward
In the context of the reorganisation, WestLB
has launched a programme for profit growth
and strict cost management. This programme
will help the Bank ensure its future viability
and pave the way for a competitive rating after
the elimination of institutional liability and
guarantor liability in 2005. This gives the Bank
added scope for offering its customers efficient
and innovative financial solutions in the long
term.
The targets defined for this purpose in the
context of systematic key ratio-based management
are ambitious and challenging – the return
on equity is to rise to 18%, the cost-income
ratio is to be reduced to 65% and the core
capital ratio is to be increased to 6.5%.
In 2002, WestLB came a good deal closer
towards achieving these targets. Considerable
progress was made in improving the cost
base. 2003 will be another year of restructuring
in which additional savings potential will be
exploited. At the same time, the Bank will further
expand profitable and fast-growing business
segments in which it holds excellent market
positions.
The core capital ratio target has already been
largely reached. Thanks to the € 1.25 billion
capital increase made by the owners at the
beginning of 2003, the capital base has been
strengthened significantly.