HSH Nordbank reported a “substantial” loan loss provisioning on ship loans in the first nine months of 2016.
Namely, the bank said the loan loss provisioning of EUR -979 million (USD 1.03 billion) before the guarantee had to be applied during the period, of which 98 percent is related to the non-core-bank.
In the first nine months of the year HSH Nordbank continued to reduce its legacy assets while setting aside substantially higher provisions for its shipping loans. At the same time, the bank earned EUR 163 million, up from EUR 24 million a year earlier, and improved its capital ratios.
According to HSH Nordbank’s CEO Stefan Ermisch, the bank is still expecting a profit for the year as a whole “despite the unabatedly difficult situation on the shipping markets and is preparing for the impending change of ownership.”