IKB Deutsche Industriebank
| IKB Deutsche Industriebank AG | |
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| Country |
 Germany
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| Seat | Dusseldorf |
| legal form | Corporation |
| Bank code | 300 104 00 |
| BIC | IKBD DEDD XXX |
| founding | September 30, 1924 |
| Website | www.ikb.de |
| Business data 2019 | |
| Total assets | 16.1 billion euros |
| Employee | 733 |
| management | |
| Board | Michael H. Wiedmann (Chairman) Claus Momburg |
| Supervisory board | Karl-Gerhard Eick (Chairman) |
The IKB German Industrial Bank AG is a financial institution based in Dusseldorf , which focuses its services primarily on medium-sized companies in Germany. The bank provides its customers with loans, risk management, capital market and advisory services. Their online offer for private customers includes overnight and fixed-term deposits, payment plans, custody accounts and selected securities. With a group balance sheet total of around 16.1 billion euros and around 600 employees, the bank is medium-sized. In addition to its headquarters in the Düsseldorf financial center, the bank has five branches in Germany and several subsidiaries. The sole shareholder in IKB is the US financial investor Lone Star Funds .
The history and development
1924 to 1931 - Bank for industrial bonds (Bafio)
As a result of the First World War , Germany had to pay reparations . According to the Dawes Plan, the industry had a reparation obligation worth five billion gold marks. The Bank for German Industrial Bonds (Bafio) was founded in Berlin on September 30, 1924 to process these payments. The capital required for this was provided by the commercial sector in the form of a “contribution levy ”. Wilhelm Bötzkes became the first chairman of the board .
The Young Plan in 1929 lifted the industry's reparation obligations. This eliminated the original business purpose of Bafio. The bank itself, including the capital accumulated up to that point, was initially retained.
1931 to 1939 - Industrial Bank Act and Osthilfe
The global economic crisis at the beginning of the 1930s brought, among other things, the heavily indebted East German farms into a situation that threatened their existence. While the Bafio was looking forward to its liquidation , the industrialist Paul Silverberg pleaded for the contribution levy to be raised in a reduced form in order to help over-indebted East German farms. On March 31, 1931, the Osthilfegesetz and the Industriebankgesetz came into force. The new tasks of the Bafio were:
- the agricultural debt relief in the Eastern aid area;
- the granting of medium and long-term loans to commercial operations, in particular those of small and medium size.
In 1939 the bank officially took over the name "Deutsche Industriebank", which had been used for a long time (Cassirer p. 71)
1939 to 1945 - Deutsche Industriebank
As a result of the National Socialist armament , government spending on armaments rose from less than 1 billion Reichsmarks (1933) to 15.5 billion (1938). This resulted in a decline in the consumer goods and construction industries, while the armaments industry was booming. The long-term industrial lending business remained unaffected for a long time by the requirements of the Nazi regime, but the bank was involved in the capital shifts as a result of the persecution of the Jews . In the course of the war, the focus was more and more on financing “investments that were important for the war economy”. The bank remained "an independent stock corporation and administratively independent of the German Reich" and always belonged to the economic group "private banking".
1945 to 1974 - Industriekreditbank AG
After the war, the industrial bank was no longer allowed to operate in Berlin. All considerations therefore resulted in a new foundation in West Germany. On December 9, 1948, a meeting of industrialists in the Frankfurt Chamber of Commerce decided to found a "self-help organization for industry". The new industrial bank should play an important role in the onward transfer of KfW funds to commercial borrowers and increase public funds by issuing its own debt securities.
Industriekreditbank AG (IKB) was founded in Düsseldorf on March 29, 1949. Initially, the bank was only able to allocate funds for medium-sized customers with considerable administrative effort, as each project had to be applied for from the planning authorities through KfW.
It was not until the mid-1950s that it was possible to put lending on a broader refinancing basis. The industrial credit bank intervened in the granting of industrial aid. Commercial companies had to raise a total of one billion D-Marks in the form of a profit-related levy, which was to be used for urgent investments in coal mining, energy and water management, the iron and steel industry and wagon construction.
The development in the 1960s was characterized by a relatively continuous increase in credit exposure. In 1953, the old Deutsche Industriebank, which had been admitted to Berlin (West) again that year, acquired a majority stake in IKB. In the mid-1960s, the Berlin Aid Act / Berlin Funding Act (BerlinFG) gave new momentum; Deutsche Industriebank, Berlin, (after the merger with IKB: Berlin branch of Industriekreditbank AG Deutsche Industriebank) became the acceptance point for so-called Berlin loans under Section 16 BerlinFG : This was the basis for a lively long-term loan business in Berlin (West) .
1974 to 1989 - the merger of IKB - Deutsche Industriebank
The ties between Industriekreditbank and Deutsche Industriebank were very close from the start. In 1974 the legal association was completed, the " Foundation for the Promotion of Research for the Commercial Economy " (today Foundation for Industrial Research ) replaced the previous trust shareholders. As an equivalent for the transfer of the industrial bank assets, it received IKB shares with a nominal value of DM 31.2 million. The Industrial Research Foundation uses the IKB dividends it receives to finance research projects, the results of which benefit small and medium-sized companies. The merger marked the beginning of a phase in which the bank's business volume expanded significantly. There were three trends in the lending business:
- The average loan amount continued to rise.
- The service industry accounted for an increasing share of loan disbursements.
- Public loan funds regained importance in refinancing - as can be seen from the example of the KfW SME program.
Increasing competition from banks and the growing demand from companies for intelligent financing prompted IKB to expand its range of long-term loans. This is how the following subsidiaries were founded:
- 1972: IKB Leasing GmbH
- 1972/73: IKB Immobilien-Leasing GmbH
- 1979: IKB International SA Luxembourg
- 1987: IKB Beteiligungsgesellschaft mbH
In the second half of the 1970s, corporate clients' interest in long-term export finance was the starting signal for IKB's international finance activities.
1989 to 2006 - years of growth
Shortly after German reunification, the bank opened a representative office in Leipzig in order to be able to look after the southern part of the former GDR on site; the existing Berlin branch was responsible for the northern part. The geographic expansion was clearly reflected in the business data of IKB. The balance sheet total rose by almost 50 percent in just three years. The extremely brisk growth confronted the bank with the need to significantly strengthen its equity base.
The IKB also increasingly looked beyond the German borders. The IKB International SA Luxembourg developed 25 percent of total loans and total assets of more than seven billion euros into the largest subsidiary in the IKB Group. In addition to corporate financing for medium-sized German companies, IKB International Luxembourg has become a competence center for foreign currency financing, structured financing and financial risk management. The Financial Risk Management business area has been systematically developed and expanded since 2000. The joint venture IKB CorporateLab was founded in Luxembourg by IKB International SA and Unicredito Banca Mobiliare in 2003 to develop interest rate and currency derivatives and sell them to medium-sized companies. The International Financing division expanded its field of activity to include the financing of investments by medium-sized companies abroad. This became particularly evident through the establishment of foreign bases. In 1987, the IKB established a representative office in Hong Kong. Branches in Paris and London followed in 1995 and 1997. In 1999 the company made the leap across the Atlantic to New York. Finally, in 2005 (Madrid) and 2006 (Milan), the European network was extended southwards.
The cooperation with Credit National (now Natexis Banques Populaires ) also began in April 1992. In May 1993, the bank agreed to work closely with BHF-Bank , which took a ten percent stake in IKB - a stake that was later held by Allianz took over.
In November 2001 KfW took over the shares from Allianz and Münchener Rückversicherungs-Gesellschaft and was then the largest single shareholder in IKB, initially with 33.2 percent and later 38 percent. There was already close cooperation between IKB and KfW in arranging publicly funded loan programs for end customers, especially in small and medium-sized companies .
2007/2008 - existential crisis
Sudden massive imbalance
On Monday, July 30, 2007, the IKB published an ad hoc announcement with the following content: As a result of the crisis in the US subprime market, the bank had found itself in a situation that threatened its existence. At the same time, the spokesman for the board, Stefan Ortseifen, resigned and KfW board member Günther Bräunig took over his duties, and a rescue package was agreed at short notice. The profit forecast for the current financial year, which was presented as safe in the preliminary quarterly report ten days earlier, has been replaced by a profit warning . In this quarterly report, the only risks in the US mortgage market were as follows:
“The tranches that Moody's put on the watchlist in this context only affect IKB with a single-digit million amount. IKB is not affected in any way by the latest analysis that Standard & Poor's prepared for the CDO market. Our activities focus on investments in corporate loan portfolios. "
The ad hoc announcement was preceded by a notification to IKB on Friday, July 27, 2007 that Deutsche Bank and other banks wanted to reduce the credit lines to IKB. At the weekend, a meeting was then held by representatives of the 38 percent majority shareholder KfW , the banking associations ( BdB , BVR , DSGV ), the Bundesbank , the Federal Financial Supervisory Authority (BaFin) and the Federal Ministry of Finance . Jochen Sanio , spokesman for BaFin, assessed the situation as so dramatic that, in retrospect, he spoke of the biggest banking crisis since 1931 . The then Bundesbank President Axel A. Weber described the comparison with the imbalance of the Danat Bank in 1931 as "completely absurd".
This weekend, KfW and the banking associations agreed on a rescue package amounting to 3.5 billion euros, of which KfW contributed 70 percent and the other banks 30 percent. This relief operation averted a short-term imminent insolvency of IKB and a possible chain reaction for the German banking market .
At the beginning of July 2009 the public prosecutor's office in Düsseldorf brought charges against Ortseifen and in particular charged him with a press release dated July 20, 2007 (in which he incorrectly stated the business development of IKB Bank, in particular the amount of the preliminary annual profit for 2007, was significantly too high - shown) violate the Securities Trading Act. He was also accused of infidelity ; he had extensive construction work carried out on the board house he lived in without adjusting his rent appropriately. He is also said to have settled private purchases through the bank. The District Court Dusseldorf imposed on 14 July 2010, a ten-month suspended sentence for stock price manipulation and a fine of 100,000 euros. The Federal Court of Justice (decision of July 20, 2011) rejected the appeal lodged by Ortseifen (Az .: 3 StR 506/10) against the judgment; this became legally binding.
prehistory
In 2001, IKB began to develop a new business area called “Portfolio Investments” . It invested in longer - term asset - backed securities such as CDOs and ABS , which were largely comprised of US real estate loans. The financing was carried out on a revolving basis through short-term money market paper , with several banks providing liquidity lines to hedge . To process these transactions, IKB had set up several special-purpose vehicles abroad such as Rhineland Funding Capital Corp., Havenrock Ltd, Rhinebridge plc and others, to which IKB AG also made liquidity lines available. These special purpose entities were not consolidated until the first IKB consolidated financial statements as of March 31, 2007; these financial statements were then replaced by a modified version in the course of crisis management. IKB itself also carried out securitisations of such structured securities via intermediate companies. According to the annual financial statements as of March 31, 2008, the risky volume at the end of July 2007 was over ten billion euros. IKB AG had promised the Rhineland Funding conduit alone a liquidity line of 8.1 billion euros. Since the financial markets no longer purchased asset-backed securities with high proportions of real estate loans from mid-2007 and other banks no longer provided the special-purpose vehicles with short-term funds, there was a risk of short-term use of the liquidity lines promised by IKB AG, which IKB AG could not provide on its own.
Further crisis development
The IKB share price, which was still over EUR 30 at the beginning of the year, fell to under EUR 10 by the first week of August 2007. The IKB general meeting originally planned for August 30, 2007 has been postponed to a new date. The auditing company PricewaterhouseCoopers was commissioned to carry out a special audit. With Volker Doberanzke, another board member resigned on August 7, 2007. His duties as CFO were initially taken over by Dieter Glüder . A crisis team was founded under the direction of Lutz-Christian Funke, Director of KfW.
On October 16, a press release briefly reported on the results of the special audit by PricewaterhouseCoopers. As a result, two other board members (Markus Guthoff and Frank Braunsfeld) left the company. The finance department was taken over by Reinhard Grzesik - a longstanding CFO of Depfa Plc . It was announced that the consolidated and individual financial statements as of March 31, 2007, which had already been prepared but had not yet been approved, would be amended and newly prepared in view of the facts known in the meantime. By court order, PricewaterhouseCoopers was appointed auditor in place of KPMG in the current financial year.
On November 29, 2007, as part of a second aid package from the banking pool, IKB received an additional risk guarantee of 350 million euros. The IKB share price fell to around 6 euros by the end of 2007, which led to a significant need for write-downs in KfW's books.
In order to cover further liquidity requirements, KfW signed a convertible bond from IKB on January 7, 2008 in the amount of EUR 54 million, which was converted into share capital a few weeks later. As a result, KfW's share in the company's share capital increased to 43.4 percent. The public was informed on January 18, 2008 that KfW intended to sell its IKB shares.
In February / March 2008 a third aid package, initially worth 1.5 billion euros, was required. Ultimately, KfW pledged a further 1.05 billion euros, which the federal government secured. The Association of German Banks promised EUR 300 million as the final, last aid measure from the banking associations, which had also been asked to take a further security measure amounting to EUR 500 million , but this was not used. In addition, IKB announced a capital increase of just under 1.5 billion euros, with KfW undertaking to subscribe to at least shares worth 1.25 billion euros.
At the Annual General Meeting on March 27, 2008, Werner Oerter , who had come from KfW, was elected as Ulrich Hartmann's successor as Chairman of the Supervisory Board. The shareholders decided on a special audit to clarify the responsibilities of the management board and the supervisory board. The decision to discharge the persons involved was postponed.
Due to the ongoing crisis at IKB, Ingrid Matthäus-Maier , spokeswoman for the board of KfW, announced her resignation on April 7, 2008 . Ulrich Schröder was appointed as his successor .
The subscription period for the capital increase announced in the first quarter ended on August 11, 2008. The issue price of EUR 2.56 (ratio 6: 1) given in the prospectus was mostly above the current rate during the subscription period. For this reason, too, almost no shares were subscribed to by free shareholders and KfW had to fulfill its commitment to take over the capital increase in the amount of 1.25 billion euros. This increased KfW's stake in IKB to 90.8 percent.
Sale to Lone Star
At a press conference on August 21, 2008, it was announced that KfW intended to sell all of its 90.8 percent equity stake in IKB to the American financial investor Lone Star . The transaction was completed on October 29, 2008 after approval by the EU competition authority and the Federal Financial Supervisory Authority . According to unconfirmed press reports, the purchase price for the shares was 137 million euros.
The existence-threatening imbalances that occurred repeatedly within a few months, as well as the sales efforts carried out with great pressure to act, were heavily criticized in public. IKB's sales price to Lone Star was well below the aforementioned target of EUR 800 million. In addition, KfW took 600 million euros in risky securities from IKB into its own portfolio. Further risk papers amounting to 1.5 billion were outsourced to a special purpose vehicle. In addition, there is a need to write off the value of the investment. The KfW's balance sheet loss resulting from the IKB commitment amounts to over eight billion euros according to figures published to date. In addition, the federal government took on around 1.2 billion euros directly during the support campaigns and promised a guarantee of 600 million euros for the above-mentioned securities taken over by KfW. In total, there are expenses for the taxpayer in the amount of around 10 billion euros; The banking associations have contributed a further 1.4 billion euros. In 2008, the German Association for Protection of Securities Holdings (DSW) counted IKB as one of the largest capital destroyers in Germany. The performance of the Prime Standard share of IKB fell by 83 percent within one year.
After the takeover by Lone Star, IKB received a guarantee from SoFFin amounting to five billion euros at the end of December 2008 . An increase in the guarantee framework by 7 billion euros to a total of 12 billion euros was granted on August 18, 2009, and IKB has now repaid all SoFFin guarantees.
In March 2008, the IKB general meeting decided on a special investigation into the business of IKB and the responsibilities of the board of directors and the supervisory board. The new IKB main owner Lone Star stopped the special investigation with a majority of his votes at the extraordinary general meeting in March 2009 and justified this with the fact that the investigation was not in the interests of IKB's business activities. In a decision of the 6th civil senate of the Düsseldorf Higher Regional Court on December 11, 2009 (Az .: I-6 W 45/09) the court found that the appointment of a special auditor for the IKB by the Düsseldorf Regional Court was lawful. The decision was justified with a sufficient and well-founded suspicion that there had been a breach of the duty of care and supervision on the part of the management board and the supervisory board. Therefore, according to the provisions of the Stock Corporation Act, it is necessary to appoint a special auditor. With this resolution, the majority shareholder Lone Star's decision to dismiss the special auditor was reversed.
In October 2010, Lone Star announced that the renovation work had so far been successful and that IKB should be sold again. In May 2013, a report appeared that the French bank BNP Paribas was interested in buying IKB's corporate banking business. However, there were other prospective buyers.
IKB has been conducting deposit business for private customers in Germany since March 2011 . Under the name “IKB direkt”, the bank initially sold overnight and fixed-term deposits over the Internet. As a result, the product range in the online business was further expanded and now offered under "IKB private customers".
Web links
- Homepage of the IKB
- IKB Deutsche Industriebank in the BaFin company database
- Early documents and newspaper articles on the IKB Deutsche Industriebank in the 20th Century press kit of the ZBW - Leibniz Information Center for Economics .
Individual evidence
- ↑ a b Master data of the credit institute at the Deutsche Bundesbank
- ^ Cassirer: Entrepreneurial Bank Between State and Market 1924–1995. 2nd ed. 1979, p. 73 and further pp. 73-76
- ↑ http://www.innovations-report.de/html/berichte/wirtschaft_finanzen/bericht-5914.html newspaper report on the acquisition of shares
- ↑ Ad hoc announcement of July 30, 2007 "KfW strengthens IKB" (PDF; 13 kB)
- ↑ Press release Preliminary quarterly results April – June 2007 (PDF; 42 kB)
- ↑ welt.de: "Just past a national disaster"
- ↑ Frank Pöpsel, focus-online-money (August 8, 2007): "No new world economic crisis"
- ↑ Press release of the Deutsche Bundesbank August 2, 2007.
- ↑ www.manager-magazin.de
- ↑ spiegel.de
- ↑ Handelsblatt dated August 2, 2011 (No. 147), page 54
- ↑ Case law BGH, July 20, 2011 - 3 StR 506/10
- ↑ ikb.de: Changed consolidated financial statements as of March 31, 2007 ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ↑ Annual financial statements of IKB 2007/2008 ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ↑ Ad hoc announcement according to § 15 WpHG of IKB Deutsche Industriebank AG of August 7, 2007 - IKB announces further measures ( memento of the original of June 24, 2009 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ PricewaterhouseCoopers report is available - IKB is pushing ahead with realignment ( memento of the original dated June 24, 2009 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Amended Annual Report 2006/2007
- ↑ Ad hoc announcement of November 29, 2007 “IKB postpones half-yearly financial report” ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ↑ KfW press release "Information from the bank pool meeting"
- ↑ Ad hoc announcement of January 7, 2008 "IKB issues convertible bonds" ( Memento of December 29, 2008 in the Internet Archive )
- ↑ KfW press release: "KfW starts selling process for its IKB shares"
- ^ Minister Steinbrück on February 15, 2008 in the Bundestag ( Memento from November 28, 2008 in the Internet Archive )
- ↑ Handelsblatt dated February 27, 2008 "coalition leaders approve rescue package for IKB"
- ↑ Handelsblatt dated February 26, 2008 "Everyone is arguing about IKB"
- ↑ Ad-hoc announcement of February 16, 2008 "Refurbishment measures for the IKB specified" ( Memento of the original of December 29, 2008 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Ad hoc announcement of March 20, 2008 "IKB expects higher valuation losses"
- ↑ Press release of August 19, 2008 "IKB Capital Increase: Final Subscription Volume" ( Memento of the original of October 19, 2008 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ ftd.de - Takeover perfect - Lone Star is awarded the contract for IKB ( Memento from September 5, 2012 in the web archive archive.today )
- ↑ Ad-hoc announcement of October 29, 2008 "Sales contract between KfW Bankengruppe and Lone Star completed" ( Memento of the original of December 29, 2008 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Handelsblatt dated June 19, 2009; P. 1; "IKB needs new billion-dollar guarantees"
- ↑ Handelsblatt dated November 18, 2008 "KfW: birthday in deep crisis"
- ↑ Explanations on the website of the Federal Ministry of Finance ( Memento of the original from January 31, 2009 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ IKB press release of December 22, 2008: "IKB receives guarantees from SoFFin" ( Memento of the original from January 30, 2009 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ IKB press release dated December 14, 2012 "IKB returns last SoFFin guarantees"
- ↑ Reuters: "Major shareholder stops special audit at Krisenbank IKB" March 25, 2009
- ↑ Düsseldorf Higher Regional Court confirms appointment of a special auditor at IKB Deutsche Industriebank AG
- ↑ Court: Appointment of special auditors for IKB is legal - OLG Senate sees suspicion of gross breaches of duty
- ^ Judges settle accounts with the board of directors and supervisors of the IKB, in: Frankfurter Allgemeine Zeitung from January 15, 2010
- ↑ Handelsblatt, October 13, 2010
- ↑ BNP wants to buy IKB's corporate customer business - Finance Magazin , article about a report in the Handelsblatt dated May 24, 2013, p. 34
Coordinates: 51 ° 15 ′ 6.9 ″ N , 6 ° 46 ′ 1.3 ″ E