WestLB, the struggling German banking group, is planning a €1.5bn ($1.8bn) capital increase to shore up its balance sheet after posting a net loss of €2.3bn in 2003 on the back of a surge in risk provisions.

The spokesman said that WestLB's capital increase, which was unveiled before the regional parliament on Thursday by Thomas Fischer, chief executive, will be launched before the end of 2004.