Bayerische Landesbank, Germany’s
second-biggest state-owned lender, hired Johannes-Joerg Riegler
as chief executive officer to replace Gerd Haeusler.

Riegler, 49, joins from state-run Norddeutsche Landesbank
Girozentrale, where he serves as management board member
responsible for business with savings banks and risk management.
He starts on April 1, Bavarian Finance Minister Markus Soeder
said at a press conference in Munich today.

BayernLB agreed with European regulators to cut costs and
sell assets after a 10 billion-euro ($13.6 billion) capital
injection that saved it from collapse during the financial
crisis. It plans to return 5 billion euros in financial aid to
the German state of Bavaria by 2019.

BayernLB said last month that third-quarter earnings
dropped 44 percent from a year earlier on charges related to the
sale of a subsidiary in Bulgaria.

Markus Wiegelmann, head of group controlling, will succeed
Stephan Winkelmeier as chief financial officer, Soeder said.
Winkelmeier said last month that he will resign at the end of
March to pursue other interests.

The company plans to cut administrative costs at its main
banking division by 15 percent, or about 130 million euros.
Further details will be provided when full-year earnings are
published next year, BayernLB said last month.

BayernLB sold its GBW AG real estate business and other
assets in return for the bailout. It is also required to sell
its loss-making Hungarian unit MKB Bank by 2016.

The Bavarian Savings Bank Association owns 25 percent of
BayernLB and the state of Bavaria the remainder.

2531Z GR

To contact the reporter on this story:
Oliver Suess in Munich at
osuess@bloomberg.net

To contact the editor responsible for this story:
Frank Connelly at
fconnelly@bloomberg.net