The ailing Norddeutsche Landesbank (NordLB) is expected, despite a solid first half of the year, more a loss for the full year 2019. Because of the realignment is expected in the next few months, with high restructuring expenses, said NordLB in Hanover.
“Accordingly, we are sticking to our forecast that the Bank, the total year 2019 with a loss is complete,” said CEO Thomas Bürkle. “The restructuring of NordLB will push ourselves to the limit and you will likely have an impact in the coming year will have a dampening effect on the company’s earnings.” For the success of the Bank, it was “inevitable”.
In the first half of the year, NordLB increased its consolidated profit significantly to 149 (previous year: 54) million euros. The administrative expenses amounted to 487 million euros, approximately 7 per cent lower than in the first half of 2018. The restructuring costs accounted for 71 (16) million euros, with the risk provision, only with a minus 1 (minus 31) Million euros. The net fee and Commission income was increased to 50 (28) million euros. “With the course of business in the first half of the year, we can be quite satisfied,” said the chief Executive officer of Bürkle.
the lower Saxony Minister of Finance Reinhold Hilbers evaluated the decline in the personnel and administrative costs as a “good Signal”. The half-year figures showed “that the necessary streamlining of the Bank has begun and has started to bear fruit,” said the CDU politician.
net interest income fell in the first six months, at 496 (618) million euros. According to the Bank, this development is in connection with the reduction of the balance sheet total and the repayment of ship financing. In the first half of the year, the balance sheet total decreased by 6 percent to 145,3 billion euros. Until 2024, you will shrink to roughly 95 billion euros.
the Background of the reduction of the NordLB is that the Bank had recorded, especially with the ship Finance billions in losses. Currently, she is waiting for a much-needed injection of capital of around 3.6 billion euros. The core capital ratio, which in future will amount to 14 per cent, was at the end of June only of 6.63 percent and was thus unchanged compared to year-end 2018. Under supervisors, a hard core capital ratio of 5.5 percent is considered the Minimum, the banks should have under Stress.
The scheduled support of NordLB by the States of lower Saxony and Saxony-Anhalt and the savings banks group is for months in limbo, because the EU Commission has yet to decide whether the cash injection is compatible with competition law. The country days in Hannover and Magdeburg have to agree.
The outgoing EU budget Commissioner Günter Oettinger had said on Tuesday that the Commission was doing everything possible to rescue the NordLB. According to the way it should be until the end of October clarity. Originally, the Bank regulator had set the deadline that the money has to be arrived at the beginning of September at the Bank.
Also, the President of the savings Bank Association of lower Saxony Thomas Mang, was the least cautious optimism. “If you have to make a 1500-Meter run and 1380 meters managed switch 120 meters from the finish, not even for the shot put,” said Mang to the progress of the talks with Brussels. A Plan ” B ” of the savings banks Association make “is not currently thought”.
For the renovation of the NordLB comprehensive spin-offs are provided, for example, in the ship loans. So the Bank sold in April, a Portfolio of shipping loans over 2.6 billion euros to the financial investor Cerberus Capital. But also Make way to fall: by the year 2024, the workforce is to be reduced by half. The removal is targeted at 2800 to 3000 full-time positions, in the first half of the year, the number of employees reduced, the Bank already from 5850 to 5600.
Reuters topics in this article, Norddeutsche Landesbank-Girozentrale, Hanover, Norddeutsche Landesbank total year of lower Saxony Thomas Bürkle restructuring, New economic Hofmeister bread is insolvent, This traditional German company went bankrupt as it is today, in order to display the star journey of the worlds: American Football live – journey to the NFL in the USA, Large differences So much the Germans earn per hour Annual discharge of How much money the Soli-elimination of the taxpayers ‘ recalls and product warnings Carcinogenic dye brings include: Ernsting’s familiy is calling kids T-Shirt back DPA Bautrend This high-rise, made of wood, has 24 floors and 20,000 square feet of space DPA test victory for discounters men’s shirts in the case of goods test: Lidl Hugo Boss and co. holiday theme claim fails May require my boss to me, when I take my vacation? Ginnie Springs, Nestlé wants to daily pumping of millions of litres of water in Florida – environmentalists protest By Eugen Epp US-Congress-investigating Deutsche Bank appears to have trump’s tax returns consumer law New rules for Online Shopping and less money for asylum seekers: The changes in September, 40 new Levels of Mahjong – free to play! Content biographies play As different much we earn in the entire profession, Not a man of many words By Jan Boris wintzen castle work in the course of time Between limbo and creative work-like the office cubicle was created By Katharina Grimm of Legendary VW Patriarch Ferdinand Piëch – farewell to a century-Manager DPA To the Restaurant – visit to the Ex-Volkswagen Patriarch Ferdinand Piëch dead F. Behrendt is the life Of Daniel Bakir obituary VW Patriarch Ferdinand Piëch: The Guru of Serenity awaits The pleasure of the slowness of life, the Ifo Institute German business best limit in case of Stagnation of the industry of dying in the low – speed video counter in Germany: “the evil Internet” DPA Catholic Church priests allegedly $ 100,000-and they are for men acquaintances from Drastic proposals Berlin apartment want to steal to rent to just under eight euros, DPA
