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From the Hülfskasse 1832 to WestLB AG

The Founding Years

1832 (January 5) Westfälische Provinzial-Hülfskasse commences business activities in Münster. Administered by the state assembly of the Province of Westphalia, this non-profit credit institution is the oldest predecessor of the later Landesbank für Westfalen (Girozentrale), which was merged with its counterpart from the Rhineland in 1969 to create Westdeutsche Landesbank.

1853 (March 14) Rheinische Provinzial-Hülfskasse established in Cologne. As in Westphalia, this institution supports the economic development of the province into a modern industrial state.

1888 As a result of an amendment of the statutes, the Provinzial-Hülfskasse becomes the public-law Landesbank der Rheinprovinz and transfers its head office to Düsseldorf.

1890 In Westphalia, the Hülfskasse also becomes the Landesbank der Provinz Westfalen.

1908 The Landesbanks begin to promote cashless payments and assume the functions of a central giro institution for the savings banks.

1914-1918 During the First World War, the securities business of the Landesbanks is expanded through subscription of war bonds. Towards the end of the war there are already signs of the post-war inflation. In October 1918 the Landesbanks issue emergency currency for the first time

1919 Landesbank der Rheinprovinz opens a branch office in Cologne in order to be represented in the occupied territory on the left bank of the Rhine. In 1922 a further branch office is opened in Aachen.

1924 Closer links with the savings banks: Both Landesbanks join the German Savings Banks and Giro Association and are integrated into the giro network of the German empire.

1931 During the economic crisis, the Landesbanks of the Rhineland and Westphalia declare their insolvency. In both institutions state commissioners take over control with the aim of recapitalization. At the instigation of the savings banks in Westphalia, the central giro business is temporarily transferred to the Provinzial-Hauptkasse Münster Abteilung B, Girozentrale Westfalen. In the Rhineland, the central giro function passes to a branch office of the Deutsche Girozentrale set up in Cologne.

1935 In the wake of the economic crisis the credit institutions are reorganised. The savings banks and giro associations of the two provinces become additional shareholders and guarantors of the Provinzial associations. In the Rhineland, the former Landesbank is converted into the Rheinische Girozentrale und Provinzialbank. In Westphalia, the Landesbank und Sparkassenzentrale für Westfalen (Girozentrale) is established alongside the former Landesbank, and includes the provisional Provinzial-Hauptkasse Münster Abteilung B.

1943 In Westphalia, the functions which had been separated on account of the economic crisis are combined again into a single banking institution: Landesbank für Westfalen (Girozentrale) assumes the functions of Landesbank, Sparkassenzentrale and Westfälisches Pfandbriefamt.

1946 Banking supervision for both institutions devolves to the Finance Minister of the newly created State of North Rhine-Westphalia.

1948 The Landesbanks support the currency reform and help the inhabitants of North Rhine-Westphalia in the reconstruction of their state.

1954/1955 The State of North Rhine-Westphalia assumes the functions of shareholder and guarantor in both Landesbanks.

Establishment of the Westdeutsche Landesbank Girozentrale

1969 Westdeutsche Landesbank Girozentrale (WestLB) is established with head offices in Düsseldorf and Münster. The former Rheinische Girozentrale und Provinzialbank and Landesbank für Westfalen (Girozentrale) are merged into the new bank. With total assets of roughly DM 28.7 billion, it is one of Germany´s biggest banks. Dr. Ludwig Poullain is appointed the first chairman.

1972 Development of an international network, including Luxembourg, London and New York.

The Eigthies

1981 Dr. Friedel Neuber is appointed the new Managing Board chairman. He pushes ahead with the internationalisation of the Landesbank and lays the foundations for investment banking. 

The Nineties

1990 Westdeutsche Landesbank is one of the first banks to open a representative office in East Berlin. It also serves the savings banks in Brandenburg. Two years later it becomes their alliance partner.

1993/94 Westdeutsche Landesbank acquires shareholdings in the Landesbanks of Rhineland-Palatinate and Schleswig-Holstein. Following the merger of the Landesbanks in Schleswig-Holstein and Hamburg into HSH Nordbank AG in 2003, WestLB has a stake of 26.9% in the new bank. In 2006 the bank sells its shareholding in HSH Nordbank AG to a group of investors lead by J.C. Flowers.

1995 Westdeutsche ImmobilienBank is founded together with the former SüdwestLB (now LBBW) and Landesbank Rheinland-Pfalz. WestLB acquires all shares in 2003. 

The year 2002

WestLB AG is established following the splitting up of the predecessor institution. On August 1, the public mission activities are integrated into the newly founded Landesbank NRW (now NRW.BANK). The building society business is also hived off and is conducted by LBS Westdeutsche Landesbausparkasse, an independent public-law company. The new WestLB AG conducts commercial banking business and operates as a private-law AG, which is entered in the commercial register on August 30.

The year 2003

Together with three other banks and the International Finance Corporation (IFC), WestLB develops the Equator Principles. Under these principles, WestLB grants loans only for projects which meet the relevant environmental and social standards. 

The year 2004

Dr. Thomas R. Fischer becomes the new chairman of WestLB at the beginning of the year.

At the end of July the saving banks associations of North Rhine-Westphalia and WestLB underline their close cooperation by setting up two reserve funds. 

The year 2005

Abolition of state guarantees:
On July 19, 2005, a new era begins for the savings banks and Landesbanks in Germany with the abolition of the state guarantees. WestLB must now compete without the protection of the state guarantees.

Capital increase: As a result of the € 959 million capital increase approved by the Shareholders´ Meeting, the directly held shareholding of the State of North Rhine-Westphalia in WestLB amounts to 16.7%. Including the shares held indirectly via NRW.BANK, the shareholding of the state totals 37.4%. The two savings banks associations of North Rhine-Westphalia each hold 25.5% of the shares, giving them a majority stake in WestLB. 

The year 2006

Acquisition of abc Privatkunden-Bank (now readybank ag) and cooperation with PAYBACK: In March WestLB agrees to cooperate with the customer loyalty programme PAYBACK; the partnership is launched at the beginning of 2007, with readybank ag serving as the central platform.

WestLB Mellon Asset Management KAG is established. On April 1, WestLB Mellon Asset Management (WMAM), the joint venture of WestLB AG and Mellon Financial Corporation, is launched. WMAM is a globally operating financial services provider specialising in asset management for institutional and retail clients. 

The year 2007

Alexander Schumann is unanimously appointed the new chairman of WestLB by the Supervisory Board on July 26.

In April WestLB ceases proprietary trading involving spreads in preferred and ordinary shares. The Bank incurred heavy losses in this segment as a result of sharp price movements in connection with a takeover bid as well as a violation of internal trading limits.

Prompted by the international financial market crisis, which was triggered by U.S. mortgage loans to low-income borrowers (so-called sub-prime lending), WestLB experienced probably the most challenging situation in its history. The Supervisory Board unanimously appoints Alexander Stuhlmann as the new Chairman of the Managing Board on July 26th.

The year 2008

In February the owners of WestLB approve a comprehensive risk shield for the Bank. A portfolio of structured securities with a total volume of approximately € 23 billion is transferred to a special purpose vehicle. The owners provide guarantees of up to € 5 billion for the transferred securities. As a result, the balance sheet and statement of income are no longer subject to the price fluctuations of the portfolio. On May 1st Heinz Hilgert takes up his appointment as the new Chairman of the Managing Board.

The year 2009

The European Commission formally approves the risk shield for WestLB in May. WestLB thus receives the planning and legal certainty it needs to press ahead with the restructuring of the Bank. However, WestLB is required to reduce its balance sheet and its risk-weighted assets by 50% respectively, close branch offices at home and abroad and sell a number of participations.

In September Dietrich Voigtländer is appointed the new CEO following the resignation of Heinz Hilgert. At the end of the year WestLB closes down its branch offices in Münster, Bielefeld and Dortmund in compliance with EU requirements; Cologne is due to follow in mid-2010. The closures include the second head office in Münster, where the history of WestLB began in 1832.