HSH Nordbank returns to profit territory in 2010
• Earnings before restructuring EUR 545 million
• Consolidated net income EUR 48 million
• Total assets reduced to EUR 151 billion
• Increase in Tier 1 capital ratio to 15.4 %
Hamburg/Kiel, March 2, 2011 - The success of HSH Nordbank’s strategic realignment is also clearly reflected in the results of the 2010 financial statements.
Last year the Bank generated earnings before restructuring of EUR 545 million according to IFRS after posting a loss before restructuring of EUR 718 million in 2009. Furthermore, for the first time since 2007 the Bank again recorded consolidated net income (of EUR 48 million) for a full financial year – in spite of expenditure on public guarantees totalling EUR 519 million. The previous year saw a shortfall of EUR 743 million. The main reasons for this positive trend were the global economic upturn combined with decreasing charges in the lending business as a result of resolute portfolio revamping.
In 2010 the Core Bank with its forward-looking business areas generated earnings before restructuring of EUR 574 million (previous year: EUR 354 million). The Restructuring Unit, where portfolios no longer forming part of the Bank’s core business have been being specifically reduced since 1 December 2009, posted a loss before restructuring of EUR 29 million (previous year: loss of EUR 1,072 million).
The Bank further reduced its total assets to EUR 151 billion in 2010 (31 December 2009: EUR 174 billion). The Tier 1 capital ratio improved to 15.4 % as at 31 December 2010 (31 December 2009: 9.5 %), demonstrating HSH Nordbank’s solid capital resources.
The stabilisation of the Bank also makes it possible to start reducing the EUR 10 billion for the second-loss guarantee granted by the federal states of Hamburg and Schleswig-Holstein by EUR 1 billion in the first quarter of 2011.
The Bank’s portfolio of equity holdings was further decreased and adjustments to the branch network continued. The number of full-time employees decreased to 3,388 at the end of 2010 (previous year: 3,610).
“We have stayed resolutely on course with the Bank's restructuring in the past two years. This is now paying off for the shareholders, our clients and staff”, said Dirk Jens Nonnenmacher, CEO of HSH Nordbank AG. “Whereas in the past two years the focus was on resolute revamping of portfolios and renewal of processes in the Bank, since the beginning of the year our primary client business has been back at the forefront.”
The Bank will publish its consolidated financial statements after approval by the Supervisory Board on 31 March 2011.
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