H1 2007: Westdeutsche ImmobilienBank remains on growth path with strong increase in profit

Mainz (ots) -

- Profit before tax up by 47.3% to EUR80.2 million
- Cost-income ratio improves to 38.2%
- Sharp increase in international business
- Continued growth with the development of capital market products
and the opening of new international locations

Westdeutsche ImmobilienBank (WIB) closed the first half of 2007
with profit before tax of EUR80.2 million in accordance with
International Financial Reporting Standards (IFRSs). This represents
a rise of 47.3% as against the previous year (EUR54.5 million).

"This result means that we have exceeded the targets that we set
ourselves for the first six months of the year. At the same time, we
also developed new markets in our international business. We are thus
continuing the successful development we recorded last year and
remain on a growth path", said Hubert Beckmann, Chairman of the
Managing Board of WIB, commenting on the Bank's half-year results.

The increase in profit is due to a significant improvement in
operating income. Net interest income rose by 12% to EUR92.4 million
(previous year: EUR82.5 million). WIB's stable risk situation and
good portfolio quality as well as general market and economic trends
enabled it to report a positive allowance for losses on loans and
advances of EUR24.7 million (previous year: EUR-2.5 million). Net
interest income after the allowance for losses on loans and advances
increased to EUR117.1 million (previous year: EUR80.0 million). WIB's
allowance for losses on loans and advances remains unaffected by the
US subprime crisis, since the Bank was not directly or indirectly
invested in this segment at any point.

Higher fee and commission income and lower fee and commission
expense for arranging private construction finance led to an increase
in net trading income to EUR3.5 million (previous year: EUR1.8
million). Administrative expenses rose by 5.9% to EUR41.8 million
(previous year: EUR39.5 million). This is mainly due to higher
expenses from the expansion of international business. At the end of
the first half of the year, the number of employees was 510 (previous
year: 503). Despite increased expenses, the cost-income ratio (CIR)
improved to 38.2% (previous year: 41.0%).

Sharp increase in foreign business

With loan commitments of EUR3.8 billion in the first six months of
2007, WIB matched the high prior-year level. The Bank has
significantly expanded its international business activities. New
business accounted for by commercial real estate financing abroad
increased by 20% to approximately EUR2.2 billion (previous year:
EUR1.8 billion). In particular, business grew in the established
Western European target countries as well as in the USA and Canada.
WIB exceeded its forecasts in its newly developed Central European
markets as well as in the Asia-Pacific countries. In addition, it
increased sales of product to hedge interest rate and currency risks
to its customers.

Strategic foundations laid: development of capital markets
business and increased presence in target markets From a strategic
perspective, the Bank has laid the foundations for its future
development. In the second half of the year, WIB will focus on
developing and expanding its capital markets business. On 1 August
2007, Peter Knopp joined WIB's Managing Board and took over the new
capital markets function. The Bank is thus increasing its capital
market-driven structuring and placement activities.

WIB established a subsidiary in Tokyo at the end of the first half
of the year, which is scheduled to begin operating by the end of
2007. Based in this location, the Bank will increase its presence in
the Asia-Pacific market. After opening a representative office in
Warsaw at the beginning of the year, WIB expects to open another one
in Prague in order to intensify its business activities in the
Central, Eastern and South European markets.

"Our sales performance abroad confirms our strategy of generating
sustainable growth by selectively expanding our locations and
developing our country-specific knowledge. We will continue to
leverage our expertise in our target markets as a growth factor in
the second half of 2007. The Bank's half-yearly results - which
substantially exceeded forecasts - cannot be extrapolated to the end
of 2007. However, we expect a significant rise in profit as well as a
year-on-year improvement in our return on equity and cost-income
ratio at the end of 2007," said Beckmann.

Download information:

You can download Westdeutsche ImmobilienBank's 2007 H1 report at
http://www.westimmobank.com/interimreports

Originaltext: Westdeutsche ImmobilienBank AG
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Contact:
Westdeutsche ImmobilienBank AG
Press and PR
Große Bleiche 46
55116 Mainz
Germany
Tel. + 49 6131 9280-7385
Fax + 49 6131 9280-7209
e-mail: presse@westimmobank.com