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Bank levy, deposit guarantee system dent LBBW's Q1 results

LandesbankBaden-Württemberg reported first-quarter net consolidated profit of€43 million, down from €76 million in the year-ago period.

Net interest income increased on a yearly basis to €414million from €379 million, while net fee and commission income decreased to€135 million from the year-ago €140 million.

The company's net losses from financial instruments measuredat fair value through profit or loss widened year over year to €34 million from€12 million.

Allowances for losses on loans and advances dropped to €4million from €29 million a year earlier. In the quarter, bank levy and thedeposit guarantee system cost the bank €74 million, up from €31 million in theyear-ago period.

LBBW's total assets rose to €251 billion as of March-endfrom €234 billion at the end of December 2015, while risk-weighted assets underCRR/CRD IV totaled €76 billion as of March-end, up from €74 billion at the endof 2015.

The common equity Tier 1 capital ratio under the CRR/CRD IVtransitional rules was 15.5%, compared to 16.4% as of Dec. 31, 2015. The fullyloaded CET1 ratio was 14.9% at March-end, compared to 15.6% at the end of 2015.

The company continues to expect that its consolidated pretaxnet profit for 2016 will be slightly below the level.