How Fischer’s plans fell apart at WestLB
Betting on the wrong horse
| Differing levels of efficiency | |||||||
| Landesbanks 2004–06 (Listed by cost/income ratio) | |||||||
| Landesbank | Employees | Economic value added@5%b (€mln) | Economic value added @9%b (€mln) | Economic value added per employee @5%b (€’000) | Economic value added per employee @9%b (€’000) | Personnel-cost per employee(€’000) | Cost/income ratio (%) |
| HSH Nordbank | 4,380 | 685 | 559 | 156 | 128 | 94 | 44.63 |
| Bremer LB | 994 | 77 | 51 | 78 | 52 | 94 | 47.86 |
| Sachsen LB | 613 | 24 | -8 | 40 | -12 | 91 | 51.39 |
| LRP | 1,628 | 100 | 57 | 61 | 35 | 86 | 51.70 |
| LBBW | 12,843 | 936 | 644 | 73 | 50 | 73 | 51.96 |
| SaarLB | 635 | 24 | 8 | 38 | 13 | 66 | 54.97 |
| BayernLB | 9,525 | 807 | 519 | 85 | 54 | 79 | 58.37 |
| NORD/LB | 6,856 | 302 | 136 | 44 | 20 | 75 | 66.68 |
| Helaba | 4,588 | 211 | 135 | 46 | 29 | 92 | 68.55 |
| LBB Holding AG a | 7,828 | 132 | 60 | 17 | 8 | 73 | 73.74 |
| DekaBank a | 3,424 | 168 | 68 | 49 | 20 | 85 | 74.91 |
| WestLB a | 6,456 | 103 | -87 | 16 | -14 | 150 | 91.64 |
| Landesbank average | 4,981 | 298 | 179 | 59 | 32 | 88 | 61.37 |
| Landesbank total c | 56,514 | 3,369 | 2,026 | ||||
| Major five German banks | |||||||
| Average a,d | 34,302 | 1,307 | 786 | 38 | 23 | 123 | 74.21 |
| DZ-bank a | 23,668 | 1,022 | 757 | 43 | 32 | 55 | 58.39 |
| a Reporting under IFRS (WestLB since 2006), Deutsche Bank under US GAAP, b Operating result in excess of cost of capital (calculated as % of common equity), c Excluding those headcounts that are already included in the respective parent’s figure, d HVB data as two-year average based on the bank’s definition of “HVB new” | |||||||
| Source: Fitch Ratings | |||||||
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
