From today’s perspective, the 2008/09 annual result (1 April 2008 to 31 March 2009) of IKB AG in line with the German Commercial Code (HGB) will be in the range of minus € 600 million. After loss participation from profit participation certificates and silent partnerships the balance sheet deficit will be about minus € 400 million. The current worsening of the results expectation is due to resolutions on a further reduction of risks on the IKB balance sheet and a reassessment of the necessary provisions for possible loan losses for the whole financial year.
In its meeting held today, the Supervisory Board of IKB Deutsche Industriebank appointed Dr. Michael H. Wiedmann (44), previously Managing Director of investment banking at Morgan Stanley in Frankfurt, to the IKB Board of Managing Directors from 1 March 2009. Wiedmann succeeds Dr. Andreas Leimbach, who departed from the Bank on 1 February 2009.
In the first six months of the financial year 2008/09 (1 April to 30 September 2008), the consolidated results of IKB Deutsche Industriebank amounted to € 250 million (H1 2007/08: € 965 million).
The Special Fund for the Stabilization of the Financial Market (Sonderfonds Finanzmarktstabilisierung – SoFFin) authorises guarantees to IKB in an amount of up to € 5 billion to guarantee the repayment of bonds to be issued by IKB in the future. The guarantees have been authorised by the EU Commission today.
The Board of Managing Directors of IKB Deutsche Industriebank AG –with the consent of the Supervisory Board – today resolved to issue subordinated convertible bonds in an amount of up to € 123.75 million. IKB expects that Lone Star will fully subscribe the portion of convertible bonds which will not be subscribed by the shareholders of IKB by exercising their pre-emptive rights. The purchase of the convertible bonds forms part of the announced increase in the own funds of IKB by Lone Star in an aggregate amount of € 225 million.
The IFRS group interim financial statements of IKB Deutsche Industriebank AG for the 2nd Quarter 2008/09 (1 July until 30 September 2008) will include positive valuation effects of presumably € 1.0 billion in total based on preliminary calculations. In the first Quarter 2008/09 similar valuation effects resulted in a loss of € 0.5 billion; thus, for the first half year 2008/09 the valuation effect is + € 0.5 billion.
Today the Supervisory Board of IKB elected Mr Bruno Scherrer (39), Head of European Investments and Senior Managing Director of the US Investor Lone Star, Chairman of the Supervisory Board. Moreover, the Supervisory Board appointed Mr Hans Jörg Schüttler (53), formerly CEO Asia and until 2006 CEO Germany of the Investment Bank Morgan Stanley, new Chairman of IKB’s Board of Managing Directors with effect of 1 November 2008.