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| WestImmo increases its consolidated profit Westdeutsche ImmobilienBank AG (WestImmo) increased its consolidated profit by 80% to EUR 44.6 million in the first six months of 2011 (EUR 24.8 million in the first six months of 2010). Net interest income after allowance for losses on loans and advances developed in a particularly positive way, which at EUR 107.4 million was around 23% higher than the prior year result (EUR 87.5 million). The reason behind this was the considerable reduction in the allowance for losses on loans and advances, which amounted to EUR - 7.9 million as at 30 June 2011, compared with EUR - 33.0 million in the prior year (-76 %). This is an expression of Westimmo's conservative risks policy. The obligatory sale of the bank required by the European Commission, which WestLB also continued in the first half of the year, was still the major factor shaping the development of WestImmo's business. This had a considerable impact on the bank's new business activities, as had already been the case in 2010, and impacted on the components of revenue. Due to the lower new business volume, interest income amounted to EUR 115.3 million compared with EUR 120.5 in the previous year. The net fee and commission income fell to EUR 2.9 million (EUR 5.1 million in the previous year). Owing to the decrease in trading in financial derivatives net trading income fell to EUR – 4.5 million (EUR 4.9 million in the previous year). The decisions by the head of state and government of 21st July 2011 requiring impairments in value to be recorded with respect to Greek government bonds as at 21st June 2011 so as to affect the result for the year, also considerably affected WestImmo's balance sheet. The impairments in value to be undertaken at mid-year amounted to EUR 29.1 million. As a result, the net income from non-current financial assets decreased to EUR -28.3 million (EUR -1.3 million in the previous year). The profit before tax decreased to EUR 30.0 million compared with EUR 35.5 million in the period of the previous year (-15.5%). WestImmo still anticipates a positive result for 2011 as a whole. This is contingent on the European as well as the US debt crisis not getting worse, and thus meaning no additional charges would be generated as a result. In its target markets WestImmo has a good, well-established market position. The bank is confident that it will continue its successful development of recent years. A major deciding factor in this is the conclusion of the selling process and certainty about the future ownership structure. Owing to the ongoing sale process, WestImmo's new business volume will be considerably lower this year compared with the volume in the previous year. write your comments about the article :: © 2011 Construction News :: home page |