Frankfurt Norddeutsche Landesbank (NordLB) started the new year with a loss, reports Reuters, citing insiders. From January to March, the loss before taxes at the Landesbank was around 120 million euros.
The main reason is a rise in interest rates on the capital market in the first quarter. The news agency quoted insiders as saying that this had led to negative valuation effects relating to pension obligations. On the other hand, important key figures such as net interest and commission income, risk provisioning and costs developed rather positively. The bank declined to comment on this when asked by Reuters, referring to the publication of the quarterly figures on Tuesday.
In the course of the 2021 restructuring, NordLB was operationally back in the black and made a profit for the first time in four years. The pre-tax result was 16 million euros. At the balance sheet press conference at the end of March, the new head of the bank, Jörg Frischholz, said that the bank had started the year in January and February with a “very encouraging revival”, especially in new business. The former HypoVereinsbank board member is to bring the reorganization of the Hannoveraner Bank to a successful conclusion.
Because NordLB is on a shrinking course after it had to be rescued by its owners with 3.6 billion euros at the end of 2019 because of bad ship loans. The Landesbank will be smaller in the future and separates from the shipping business. The number of employees is to be roughly halved to around 3,000.
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According to Reuters, financial circles said the valuation losses should be reflected in the so-called fair value result for the first quarter. On the other hand, net interest income increased by around four percent and net commission income also increased noticeably, while the bank reduced administrative costs.
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