Annual Report 2002 (pdf, 1319K) - WestLB

18
Focus on Solutions — Drawing on
our innovative, solution-driven expertise,
WestLB AG provides customers with
forward-looking, state-of-the-art financial
services and products.
Market Position in Core Businesses
Consolidated
Despite extremely difficult market conditions,
WestLB AG provided its customers – corporate
clients, financial institutions, savings banks
and public-sector clients – with a wide range
of financial solutions tailored to their specific
requirements in 2002. Backed by our widespread
product and sector-specific expertise, we were
thus able to meet the financing and investment
challenges posed by the changing requirements
of the market and of our customers.
Demand for credit decreased noticeably as the
economy continued to stagnate. Going forward,
we will focus the traditional lending business
even more closely on risk-return aspects and
on its function as a provider of value-added
products. The persisting weakness on the stock
markets adversely affected our equity-based
business both on the primary and secondary
markets. We have responded to the changed
conditions on the stock markets and are
refocusing our business activities. The bond,
liquidity and foreign exchange markets were
likewise unable to escape the prevailing
uncertainty; issuing volume on the Eurobond
market declined perceptibly. Nevertheless, we
improved our position in the corporate bond
segment and in issues of public-sector clients.
We also strengthened our leading position in
the European syndicated loan market, which
has grown considerably.
In view of a significant consolidation in the
equity investment market, we undertook a
major streamlining of our investment portfolio.
We also made a number of new investments in
medium-sized companies and large corporations.
Our wide range of equity capital products and
solid sector expertise will enable us to seize the
growing opportunities in the German private
equity market as we move forward.
The specialised finance segments were also hit
by the weak development of the economy. We
were nevertheless able to consolidate our market
position in the core businesses thanks to our
acknowledged expertise. These include asset
securitisation, an area in which we are a leading
European player. We substantially increased
the issuing volume on the European asset
securitisation market, thereby boosting our
market share further. We established the
successful principal finance segment as an
independent business unit on January 1, 2003.