AD HOC: HSH Nordbank reporting net loss for 2008
Hamburg/Kiel, February 13, 2009 - According to preliminary non-audited IFRS group figures, HSH Nordbank closed 2008 with a consolidated net loss of around EUR 2.8 billion before restructuring costs, taxes and loss participation (previous year: net profit of EUR 285 million).
This figure includes the impairments of around EUR 1.6 billion (previous year: EUR 1.3 billion) on the credit investment portfolio. Further writedowns necessitated by the crisis afflicting the financial market are valued at EUR 0.9 billion and include, among other things, adjustments in connection with the Lehman insolvency and the collapse of Icelandic banks. HSH Nordbank has responded to the heightened risks in its lending business in the wake of the current economic crisis by substantially increasing loan-loss provisioning to EUR 1.4 billion (previous year: EUR 1 million income). In 2008, the group generated net interest and commission income of around EUR 2 billion (previous year: EUR 1.9 billion).
The Bank had previously announced that it would be paying the coupons on silent partnerships which are contingent on the Bank reporting a net income for the year. For the individual financial statement, according to German GAAP, the Management Board assumes a profit for the year shown in the balance sheet. Therefore the Bank will be able to pay the coupons on profit participation certificates and silent partnerships. At the moment, the bank is in the advanced stages of constructive negotiations with its owners concerning a strategic realignment.
The information contained in this press release does not constitute an offer for the sale of any type of Hamburg Commercial Bank AG securities. Securities of Hamburg Commercial Bank AG may not be sold in the United States without registration pursuant to US securities legislation, unless such a sale takes place on the basis of relevant exceptional provisions.
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