Landesbank Hessen-Thüringen is one of the major real estate financiers. She is planning a new skyscraper in Frankfurt. The “Central Business Tower” is to be 205 meters high.
(Photo: Helaba)
Frankfurt In view of growing uncertainties, Landesbank Hessen-Thüringen (Helaba) increased its loan loss provisions to EUR 85 million in the first half of 2022. That corresponds to the bank’s cautious risk policy, said Helaba boss Thomas Groß on Thursday.
Groß pointed out that the tense geopolitical situation, the burdens of energy shortages, sharply rising inflation, delivery bottlenecks and higher interest rates are slowing down economic development and unsettling the markets. Nevertheless, Helaba expects pre-tax earnings of more than EUR 500 million for 2022 – “provided that there are no further massive upheavals that will lead to an economic slump in the short term,” said Groß.
Last year, the Landesbank had earned 569 million euros before taxes. In the first half of 2022 it was 327 million euros, as she has now announced.
So far, there have been hardly any loan defaults, the bank explained. Loan loss provisions were even higher in the same period of the previous year.
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Helaba is one of the largest real estate financiers in Germany. Real estate investors are also cautious because of the war in Ukraine, the ongoing surge in inflation and significantly higher financing costs. Private construction financing has also been slowed down for a long time.
The Landesbank also implements construction projects itself. At the end of last year, the bank announced the construction of a 205-meter high-rise building in the middle of Frankfurt.
The “Central Business Tower” will be 205 meters high and will be completed by the end of 2027. The Commerzbank Tower in Frankfurt is currently the tallest skyscraper in the EU at 259 meters – the London skyscraper The Shard lost this title after Brexit despite its 310 meters.
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