Press Release.

22.11.2012

LBBW welcomes the owners' decision to convert their silent partners' contributions

Following on from the savings banks of Baden-Württemberg and the State of Baden-Württemberg, the City of Stuttgart as the last of three owners of Landesbank Baden-Württemberg (LBBW) has today consented to the conversion of its silent partners' contributions into share capital. LBBW welcomes this decision. "We thank our owners for their support and confidence. This ensures that LBBW will be able to satisfy also the substantially more stringent regulatory capital requirements for banks in the future," said Hans-Jörg Vetter, Chairman of the Board of Managing Directors.

Following the consent given by the City, the State and the savings banks, the conversion of the silent partners' contributions up to a total of about EUR 3.2 billion can now be implemented. On 1 January 2013 EUR 2.2 billion will be converted as planned. The background to the conversion plans relates to the higher future capital requirements arising from the introduction of Basel III and the requirements which are expected to be imposed by European banking supervisory authorities. Among other things, silent partners' contributions will no longer count as Tier 1 capital in the future.

LBBW has been systematically running off its risk weighted assets, particularly in its credit investment business, for years. In this way, it has already managed to strengthen its capital ratios substantially. As of 30 September 2012, its Tier 1 capital ratio stood at 14.9 percent. "We are systematically disposing of all non-core activities and turning LBBW into an exclusively customer-oriented bank. We have already made substantial progress in achieving this goal. With our owners' consent we will be able to continue on this path on a solid basis," explained Hans-Jörg Vetter.

Contacts

Landesbank Baden-Württemberg
Am Hauptbahnhof 2
D-70173 Stuttgart

Christian Potthoff
Head of Corporate Communications
Tel.: +49 711 127-73946
Fax: +49 711 127-74861

christian.potthoff@LBBW.de