NordLB boosts shipping provisions five-fold

Major German shipping bank NordLB upscales its loan loss provisions on shipping five-fold and warns of significant loss for the year. But "NordLB is capable of absorbing this loss in full," says CEO.

NordLB president and CEO Gunter Dunkel

Norddeutsche Landesbank, NordLB, boosted provisions for bad loans nearly fivefold to EUR 1 billion euros (USD 1.1 billion), as Germany’s biggest shipping lender prepares for its first full-year loss since 2009. NordLB, controlled by the state of Lower Saxony, posted a loss of EUR 406 million in the first half as it battles a prolonged slump in maritime markets, including eight years of crisis in the container segment. That compares with a profit of EUR 290 million in the same period last year.

"The shipping crisis, which further intensified in the first half of the year, has necessitated impairments that were higher than planned," Chief Executive Officer Gunter Dunkel says in a statement.

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