HSH unveils E3bn net loss

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Patrick Hagen, Cologne - Friday 13 February 2009

 

HSH Nordbank, the world’s largest ship financing bank, has reported a net loss of €2.8bn ($3.6bn) for 2008. 
The amount includes impairments of some some €1.6bn on its credit investment portfolio and further writedowns of €900m, which became necessary after the Lehman Brothers insolvency and the collapse of Icelandic banks. The figures are preliminary and non-audited. In 2007, the bank had reported a net profit of €285m. 
HSH Nordbank said that it has increased loan loss provisions that cover the risk of credit defaults to €1.4bn. In 2008, the bank achieved an income from interests and commissions of some €2bn, compared to €1.9bn in 2007. 
For the first nine months of 2008 HSH reported losses of €360m and had to ask the government bailout fund for guarantees of some €30bn. In turn, the bank has to increase its equity and reduce its total assets. 
The bank is negotiating with its owners over a strategic realignment, which will likely see the bank concentrate on regional German business. However, the bank stressed that it will keep shipping and transport finance as core business.