NordLB to Chop Shipping Loans by Up to USD 8 Bln

Image Courtesy: NordLB/Daniel Bames

Led by the current slowdown in the shipping market, German shipping bank Norddeutsche Landesbank (Nord/LB) said it will decrease its shipping loans by some EUR 5 to 7 billion (USD 5.6 to 7.9 billion).

Namely, the bank is planning to reduce the shipping portfolio from its current volume of EUR 19 billion by outsourcing risks and targeted reduction to a future volume of some EUR 12 to 14 billion, according to the Chairman of the Managing Board of Nord/LB, Dr. Gunter Dunkel.

“This will not be possible without additional negative impact on earnings. Nonetheless, Ship Finance is set to remain a key component of our business model in future,” Dunkel said.

Nord/LB further said that 2016 will also be a challenging year with “tighter regulatory stipulations, increasingly intensive competition, the continuation of low interest rates and the increasing digitalisation of the finance sector.” 

Added to these factors, as well as the ongoing shipping crises, the bank expects that “risk provisioning will also be negatively impacted to a large extent this year.”

Although it is almost impossible to predict further developments on the shipping markets, Dunkel said that “the only certainty is that things will remain difficult.”

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jul 2017 >>
MTWTFSS
26 27 28 29 30 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

Global Liner Shipping Asia Conference

Fight. Survive. Thrive. Respond to challenges of consolidation & disruption at the largest gathering of container shipping industry in Asia…

read more >

Bunkering Week 2017

IBC’s biennial Bunkering Week is back with its successful series of 3 co-located events: 8th Bunkering in Asia, 4th LNG Bunkering and EMTECH: Ship Emissions Technology Conference. With a proven track record of bringing together top decision makers from various industry sectors, this remains the go to event for ship owners, fuel suppliers, traders and […]

read more >

Indonesia Marine & Offshore Expo (IMOX) 2017

Indonesia Marine & Offshore Expo (IMOX) 2017, Batamis an international maritime and offshore industrial event that brings an international…

read more >

Salvage & Wreck Asia

Could your business be affected by shipwreck? Are you a salvage professional or a wreck removal expert? …

read more >