Landeskreditbank Baden-Württemberg - Förderbank (L

BANKING
OCTOBER 5, 2016
Landeskreditbank Baden-Württemberg –
Förderbank – (L-Bank)
COMPANY PROFILE
Karlsruhe, Germany
Company Overview
Table of Contents:
COMPANY OVERVIEW
FINANCIAL HIGHLIGHTS
(AS REPORTED)
BUSINESS ACTIVITIES
DISTRIBUTION CAPACITY AND
MARKET SHARE
OWNERSHIP AND STRUCTURE
COMPANY MANAGEMENT
COMPANY HISTORY
PEER GROUP
RELATED WEBSITES AND
INFORMATION SOURCES
MOODY’S RELATED RESEARCH
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Analyst Contacts:
FRANKFURT
+49.69.70730.700
Goetz Thurm, CFA
+49.69.70730.773
Vice President - Senior Analyst
[email protected]
Christina Gerner
+49.69.70730.721
Associate Analyst
[email protected]
Carola Schuler
+49.69.70730.766
Managing Director - Banking
[email protected]
This report, exclusively provided to you by
Moody’s, presents a convenient summary of as
reported, publicly available information. The
information is not adjusted for Moody’s
analytic purposes. For Moody’s Ratings, Opinion
and Analytics on this company, please
[Click here]. To access the latest Moody's Credit
Opinion on this company, please [Click here].
Landeskreditbank Baden-Württemberg – Förderbank – (L-Bank) is a development bank that
operates as the official bank of the German federal state of Baden-Württemberg. As of 31
December 2015, the bank reported an asset base of €73.3 billion.
L-Bank provides loans, subsidies and other financial assistance in order to support the state
government of Baden-Württemberg in areas such as economic development (business
development of start-ups, small and medium-size enterprises (SMEs), agricultural businesses and
energy-saving schemes), housing development (for private individuals and companies) as well as
financing for municipal and social infrastructure projects. It also provides guarantees and
undertakes equity investments.
L-Bank was established in December 1998 as a public law institution wholly owned by the State
of Baden-Württemberg. It benefits from an explicit, unconditional, unlimited, and irrevocable
guarantee from the State of Baden-Württemberg. Additionally, the bank benefits from the legal
support mechanisms of maintenance obligation (Anstaltslast) and guarantee obligation
(Gewährträgerhaftung), agreed upon with the European Commission, which are enshrined in the
L-Bank Act, a specific law governing L-Bank.
Source: Company Reports (debt issuance prospectus July 2016, annual report Dec 2014 and Dec 2015)
BANKING
Financial Highlights (as Reported)
Note: The financials presented below are those reported by the entity and are not adjusted for Moody’s analytic
purposes. For Moody’s generated ratios on Landeskreditbank Baden-Württemberg - Förderbank (L-Bank), please
see <Landeskreditbank Baden-Württemberg - Förderbank (L-Bank) page on moodys.com>.
EXHIBIT 1
Latest Full-Year Results
Landeskreditbank Baden-Württemberg – Förderbank – (L-Bank)
(in € Million)
31-Dec-15
31-Dec-14
31-Dec-13
Total Assets
% Change
15/14
% Change
14/13
73,295
70,190
70,682
4.42
(0.70)
Total Shareholders’ Equity
3,395
3,245
3,017
4.64
7.55
Equity Capital
3,747
3,555
3,628
5.41
N/M
Tier 1 Ratio (%)
16.38
13.95
15.68
2.43 pp
N/M
51
49
101
2.93
(51.19)
Net Income
Notes: 1) “Shareholders’ Equity” shown above includes fund for general banking risks
2) “Tier 1 Ratio” for Dec 2015 and Dec 2014 have been stated in accordance with Basel III - fully loaded framework, while those for Dec 2013
are in accordance with the Basel II framework.
3) “Equity Capital” for Dec 2015 and Dec 2014 have been stated in accordance with Basel III – transitional phase-in – framework, while those
for Dec 2013 are in accordance with the Basel II framework.
4) Due to changes in regulatory regimes, “% Change 14/13” data for both items are not meaningful (N/M).
Source: Moody’s research
Business Activities
L-Bank is a development bank that operates as the official bank of the State of Baden-Württemberg in
South-western Germany. The bank focuses mainly on providing services within three segments:
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Economic Development, especially for SMEs: L-Bank provides loans to entrepreneurs to establish
new businesses or acquire, modernise or expand existing businesses. In addition, it provides customised
mezzanine products, and equity and equity-like funds geared to the needs of entrepreneurs and SMEs.
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Financial Assistance for Housing Construction: With low-interest loans, L-Bank supports housing
companies and individuals in the construction of new houses, the acquisition of houses and
apartments, and the modernisation of existing dwellings.
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Infrastructure Financing: The bank provides loans and financing facilities to municipalities and other
public-sector institutions to support infrastructure development.
In addition, L-Bank supports the State of Baden-Württemberg in the following areas: community renewal
and development; promotion of technical advances; agriculture and forestry development; environmental
protection; export promotion; strengthening competitiveness of business enterprises domiciled in BadenWürttemberg; and support for families and students. It also promotes science and art. Apart from
This publication does not announce promotional activities in its home region, the bank also covers some mandated development functions on
a credit rating action. For any
behalf of the Free State of Saxony.
credit ratings referenced in this
publication, please see the ratings
tab on the issuer/entity page on
www.moodys.com for the most
updated credit rating action
information and rating history.
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OCTOBER 5, 2016
Source: Company Reports (debt issuance prospectus July 2016, annual report Dec 2015)
COMPANY PROFILE: LANDESKREDITBANK BADEN-WÜRTTEMBERG – FÖRDERBANK – (L-BANK)
BANKING
EXHIBIT 2
Credit Portfolio – Exposure Split by Counterparty
(in %, as of 31 Dec 2015)
Private Clients
8.0%
Other Companies and SelfEmployed Persons
12.5%
Companies in the Financial
Sector
41.5%
Public Sector
37.9%
Source: Company Report (annual report Dec 2015, Pg: 69)
Distribution Capacity and Market Share
L-Bank operates through its head office in Karlsruhe and its sole branch in Stuttgart. In addition to managing
its own-originated business or funding, L-Bank partners with other financial institutions through cooperation
agreements with Kreditanstalt für Wiederaufbau and other development banks, especially by forwarding
promotional loans.
Source: Company Reports (company presentation Mar 2016, annual report Dec 2014), Moody’s research
The geographical distribution of L-Bank’s lending portfolio is as follows:
EXHIBIT 3
Regional Breakdown of L-Bank’s Exposures
(in %, as of 31 Dec 2015)
International Organisations
1.4%
US
0.8%
Canada
0.7%
Other Countries
0.1%
Rest of Europe
9.6%
Germany
87.5%
Source: Company Report (annual report Dec 2015, Pg: 73)
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OCTOBER 5, 2016
COMPANY PROFILE: LANDESKREDITBANK BADEN-WÜRTTEMBERG – FÖRDERBANK – (L-BANK)
BANKING
Ownership and Structure
L-Bank is a public law institution wholly owned by the State of Baden-Württemberg, which provides an
explicit, unconditional, unlimited, and irrevocable guarantee for the bank’s assumed liabilities. The State of
Baden-Württemberg also assumes the bank’s maintenance obligation (Anstaltslast) and guarantee
obligation (Gewährträgerhaftung).
Source: Company Report (debt issuance prospectus July 2016)
Equity Interests
As of 31 December 2015, L-Bank held equity interests in the following companies:
EXHIBIT 4
Landeskreditbank Baden-Württemberg - Förderbank - (L-Bank)
Equity Interest
Location
% Held
Austria Beteiligungsgesellschaft mbH
Stuttgart
33.34
Baden-Württemberg International – Gesellschaft für internationale wirtschaftliche
und wissenschaftliche Zusammenarbeit mbH
Stuttgart
24.00
BrandMaker GmbH
Karlsruhe
35.65
CONTTEK Holding GmbH
Pforzheim
44.75
DBAG Expansion Capital Fund GmbH & Co. KG
Frankfurt/Main
21.77
Digital Commerce Network GmbH
Karlsruhe
42.33
GUTEX Holzfaserplattenwerk H. Henselmann GmbH & Co. KG
Waldshut-Tiengen
36.50
H. Henselmann Verwaltungsgesellschaft mbH
Waldshut-Tiengen
36.57
iQuest Holding GmbH
Frankfurt/Main
27.83
MBG Mittelständische Beteiligungsgesellschaft Baden-Württemberg GmbH
Stuttgart
26.80
Micropelt GmbH
Freiburg
20.10
OnSee Holding GmbH
Bruchsal
47.71
ONVENTIS GmbH
Stuttgart
34.35
PT German Centre Indonesia II
Tangerang, Indonesia
98.42
Rhitex-Bauplatten Gesellschaft mit beschränkter Haftung
Waldshut-Tiengen
36.55
Selbca Holding GmbH
Berlin
36.55
Staufen.AG Beratung Akademie Beteiligung
Köngen
25.10
StEP Stuttgarter Engineering Park GmbH
Stuttgart
100.00
Strohheker Holding GmbH
Pforzheim
49.50
SYMPORE GmbH
Tübingen
34.98
Technologiepark Karlsruhe GmbH
Karlsruhe
96.00
Technologieparks Tübingen-Reutlingen GmbH
Tübingen
100.00
Wessel-Werk Beteiligungsverwaltung GmbH
Karlsruhe
35.00
Source: Company Report (annual report Dec 2015)
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OCTOBER 5, 2016
COMPANY PROFILE: LANDESKREDITBANK BADEN-WÜRTTEMBERG – FÖRDERBANK – (L-BANK)
BANKING
Company Management
Board of Management
Current Title
Dr. Axel Nawrath
L-Bank: Chairman of the Board of Management;
Deutsche Bundesbank: Member of the Advisory Board of the Regional Office in BadenWürttemberg;
Association of German Public Sector Banks (VÖB): Member of the Board;
HSBC Trinkaus & Burkhardt AG: Member of the Administrative Board
Dr. Ulrich Theileis
L-Bank: Vice Chairman of the Board of Management;
Vorarlberger Landes- und Hypothekenbank AG: Member of the Supervisory Board
Sächsische Aufbaubank – Förderbank –: Member of the Supervisory Board
As of 31 Dec 2015
Supervisory Board
Affiliation
Regular Members
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OCTOBER 5, 2016
Edith Sitzmann MdL
L-Bank: Chairman of the Supervisory Board;
State Government: Minister of Finance
Thomas Strobl
L-Bank: 1st Vice Chairman of the Supervisory Board;
State Government: Deputy Prime Minister of the State of Baden-Württemberg, Minister of the
Interior, Digitalisation and Migration
Dr. Nicole HoffmeisterKraut MdL
L-Bank: 2nd Vice Chairman of the Supervisory Board;
State Government: Minister of Economy, Labour and Housing
Dr. Jürgen Bufka
L-Bank: Member of the Supervisory Board;
Amber Infrastructure GmbH: Executive Director
Franz Untersteller MdL
L-Bank: Member of the Supervisory Board;
State Government: Minister of the Environment, Climate and Energy
Klaus-Peter Murawski
L-Bank: Member of the Supervisory Board;
Ministry of State: State Secretary
Claus Schmiedel
L-Bank: Member of the Supervisory Board
Andrea Lindlohr MdL
L-Bank: Member of the Supervisory Board;
Alliance 90/The Greens Parliamentary Group: Member
Joachim Wohlfeil
L-Bank: Member of the Supervisory Board;
Karlsruhe Chamber of Trades and Crafts: President
Dr. Peter Kulitz
L-Bank: Member of the Supervisory Board;
Ulm Chamber of Industry and Commerce: President;
ESTA Apparatebau GmbH & Co. KG: Managing Partner
Roger Kehle
L-Bank: Member of the Supervisory Board;
Gemeindetag Baden-Württemberg e.V.: President
Leni Breymaier
L-Bank: Member of the Supervisory Board;
VER.DI Baden-Württemberg: Regional Manager
Dr. Dieter Salomon
L-Bank: Member of the Supervisory Board;
Städtetag Baden-Württemberg e.V.: Vice President
Gabriele Kellermann
L-Bank: Member of the Supervisory Board;
BBBank eG: Member of the Board
Dr. Maximilian DietzschDoertenbach
L-Bank: Member of the Supervisory Board;
Doertenbach & Co. GmbH: Managing Director
COMPANY PROFILE: LANDESKREDITBANK BADEN-WÜRTTEMBERG – FÖRDERBANK – (L-BANK)
BANKING
Supervisory Board
Affiliation
Consulting Members
Clemens Meister
L-Bank: Member of the Supervisory Board and Chairman of the Central Staff Council, Karlsruhe
Tatjana Aster
L-Bank: Member of the Supervisory Board and Chairman of the Staff Council, Karlsruhe
Thomas Dörflinger
L-Bank: Member of the Supervisory Board and Chairman of the Staff Council, Stuttgart
As of 23 Sep 2016
Source: Company website
Company History
L-Bank’s company history dates back to 1924, when Württembergische Wohnungskreditanstalt was
established as an institution under public law to overcome the housing shortage after World War I. In 1932,
the institution was renamed Württembergische Landeskreditanstalt.
In 1934, the Government of Baden established an institution for social housing development, which was
renamed Badische Landeskreditanstalt (BLK) für Wohnungsbau in 1935.
In 1952, the three federal states of Württemberg-Baden, Baden and Württemberg-Hohenzollern merged
into the federal state of Baden-Württemberg. However, it was not until 1972 that the two development
banks merged into Landeskreditbank Baden-Württemberg. In 1973, the institution was additionally
entrusted with the promotion of housing construction, and economic and agricultural development on
behalf of the Ministry of Economic Affairs.
After the fall of the Berlin Wall and the reunification of Germany, in 1991, Landeskreditbank BadenWürttemberg established Sächsische Aufbaubank (SAB), a legally dependent institution with the purpose of
promoting economic and agricultural development as well as housing construction in the eastern German
Free State of Saxony.
In 1998, the development agency unit and the commercial banking business of Landeskreditbank BadenWürttemberg were segregated. The bank’s promotional assets, including those of SAB, were transferred to
the newly created Landeskreditbank Baden-Württemberg - Förderbank (L-Bank). Subsequently, the
commercial banking business that had been launched in 1988 was transferred to Landesbank BadenWürttemberg, and L-Bank’s business model as a pure development bank was restored.
L-Bank sold its shareholding in SAB to Sachsen LB in 2001, but retained the portfolio of loans and
guarantees that it had accumulated in SAB before 1996. In November 2015, L-Bank sold a part of this legacy
portfolio (€0.9 billion) to SAB. Today, SAB is wholly owned by the Free State of Saxony.
L-Bank is considered a “significant supervised entity” in the newly established single-supervisory mechanism
effective since 4 November 2014, and is therefore supervised by the European Central Bank (ECB).
Source: Company Report, Company Data, Moody’s research
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OCTOBER 5, 2016
COMPANY PROFILE: LANDESKREDITBANK BADEN-WÜRTTEMBERG – FÖRDERBANK – (L-BANK)
BANKING
Peer Group
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Kreditanstalt für Wiederaufbau
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Landwirtschaftliche Rentenbank
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LfA Förderbank Bayern
»
NRW.BANK
Related Websites and Information Sources
For additional information, please see:
»
the company’s website: www.l-bank.de
»
the association of German public banks (VÖB): www.voeb.de
»
the national regulator’s website: www.bundesbank.de, www.bafin.de
»
the ECB’s regulatory website: www.bankingsupervision.europa.eu
MOODY’S has provided links or references to third party World Wide Websites or URLs ("Links or References") solely for your
convenience in locating related information and services. The websites reached through these Links or References have not
necessarily been reviewed by MOODY’S, and are maintained by a third party over which MOODY’S exercises no control.
Accordingly, MOODY’S expressly disclaims any responsibility or liability for the content, the accuracy of the information, and/or
quality of products or services provided by or advertised on any third party web site accessed via a Link or Reference. Moreover,
a Link or Reference does not imply an endorsement of any third party, any website, or the products or services provided by any
third party.
Moody’s Related Research
Credit Opinion:
»
Landeskreditbank Baden-Württemberg – Förderbank, July 2016
Announcement:
»
Germany's adoption of EU BRRD clarifies treatment for grandfathered debt and institutional protection
schemes, November 2014 (314006)
Special Comment:
»
German Development Banks: Strong Public-Sector Support and Legal Framework Underpin Aaa-Aa1
Rating, July 2013 (153231)
Credit Focus:
»
German Development Banks: Peer Comparison, July 2013 (156340)
Banking System Outlook:
»
Banking System Outlook: Germany, October 2015 (1006359)
To access any of these reports, click on the entry above. Note that these references are current as of the date of publication of
this report and that more recent reports may be available. All research may not be available to all clients.
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OCTOBER 5, 2016
COMPANY PROFILE: LANDESKREDITBANK BADEN-WÜRTTEMBERG – FÖRDERBANK – (L-BANK)
BANKING
Report Number: 192495
Authors
Christina Gerner
Götz Thurm, CFA
Editor
Kamin Au
Production Associate
Joby Mathew
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OCTOBER 5, 2016
COMPANY PROFILE: LANDESKREDITBANK BADEN-WÜRTTEMBERG – FÖRDERBANK – (L-BANK)