Today a settlement agreement was signed by Crédit Agricole Corporate and Invest-ment Bank (“CA CIB”, formerly Calyon), Financial Guaranty Insurance Company (“FGIC”), IKB Deutsche Industriebank Aktiengesellschaft (“IKB”) and others.
As in the same period of the previous year, the first quarter of the 2011/12 financial year was dominated by the government debt crisis in Europe. In the eurozone, there was uncertainly due to the potential for further rescue measures for Greece in particular, as well as the risk of potential contamination for major euro member states, leading to a further increase in the risk premiums for governments and banks alike.
IKB Deutsche Industriebank AG has returned additional SoFFin guarantees totalling € 1.3 billion early. The guarantees returned comprise a volume of € 0.6 billion in the bond ISIN DE000A0SMN03 (maturing on 27 January 2012, 2.875%) and a volume of € 0.7 billion in the bond ISIN DE000A0SMN45 (maturing on 13 March 2012, 2.625%). Thus, current SoFFin guarantees for IKB amount to € 7.3 billion.
NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA AND JAPAN
The Board of Directors of IKB International S.A. has prepared the Bank’s annual financial statements for the 2009/10 financial year ended 31 March 2010 and submitted them to its General Meeting for approval. The preparation of the annual financial statements means that the conditions for calculating the loss participation of the silent partner contribution of IKB S.A. that ended on 31 March 2010 and the silent partner contribution due for repayment on 17 November 2010 have now been defined. These are explained below.
At the request of IKB Deutsche Industriebank AG on 4 February 2010, the Special Fund for the Stabilisation of the Financial Market (Sonderfonds Finanzmarktstabilisierung – SoFFin) today ruled to reduce IKB’s guarantee from a total of € 12 billion to € 10 billion effective from 17 February 2010. IKB had filed for the reduction as the Bank’s liquidity situation has now stabilised.
IKB Deutsche Industriebank AG’s Board of Managing Directors resolved on
1 February 2010 to reverse a positive effect of € 56 million which had previously been shown in the fair-value result as of 30 September 2009.
The Higher District Court in Düsseldorf has dismissed IKB Deutsche Industriebank AG´s appeal against the decision of the District Court in Düsseldorf. The District Court had decided at the request of shareholders to appoint a special auditor to examine whether members of the Board of Managing Directors or the Supervisory Board at IKB were involved in violations of duty in connection with the causes of the crisis at IKB.
The consolidated net loss (after taxes) of IKB Deutsche Industriebank AG in the first half of FY 2009/10 (1 April 2009 to 30 September 2009) amounted to € -398 million (H1 2008/09: consolidated net profit of € 240 million). The loss is mainly due to the negative fair value result as the fair value gains on the assets side of the balance sheet were significantly exceeded by the fair value losses on the equity and liabilities side. Loan loss provisions also increased as anticipated. Significant gains were generated on the remeasurement of compensation agreements, some profit-participation certificates and silent partnership contributions. These were reported under other operating income.
IKB Deutsche Industriebank AG is forecasting a consolidated net loss of € 398 million (IFRS) for the first half of the 2009/10 financial year (1 April 2009 to 30 September 2009). The loss is mainly due to the negative fair value result as the fair value gains on the assets side of the balance sheet were significantly exceeded by the fair value losses on the equity and liabilities side. Loan loss provisions also increased as anticipated. Significant gains were generated on the remeasurement of compensation agreements, some profit-participation certificates and silent partnership contributions. These gains are shown under Net other operating income.
The District Court in Düsseldorf has decided at the request of shareholders to appoint a special auditor to examine whether members of the Board of Managing Directors or the Supervisory Board at IKB were involved in violations of duty in connection with the causes of the crisis at IKB.
CALYON has instigated proceedings against IKB in the High Court of Justice in London and claims inter alia damages in excess of US$ 1.675 billion. The Particulars of Claim were served on IKB on 24 August 2009 in the afternoon. IKB sees the action which includes an independent damages claim in connection with the proceedings brought by U.S. monoliner FGIC in March 2008.
The board of directors (Verwaltungsrat) of IKB International S.A. finalised the preparation of the Luxembourg Bank’s annual financial statements for the 2008/09 financial year which ended on 31 March 2009 and forwarded them to the Annual General Meeting of Shareholders (Generalversammlung) for approval. Based on the financial statements, the loss participation of the silent partnership certificates (Stille Beteiligungen) in IKB International S.A. has been calculated, as specified below.
IKB’s Board of Managing Directors has prepared the preliminary figures for the financial year 2008/09 (1 April 2008 to 31 March 2009) for IKB AG pursuant to the German Commercial Code (HGB). All the figures stated below have not yet been formally stated by the Board of Managing Directors or audited and remain preliminary until approved by the Supervisory Board.