HSH Nordbank plans increase in guarantee to the original amount
Hamburg/Kiel, February 6, 2013 - Today the Supervisory Board of HSH Nordbank took due note of the Management Board’s medium-term forecast. The forecast includes an increase in the guarantee facility from EUR 7 billion to the original amount of EUR 10 billion in order to ensure adequate capital resources.
The cost of an increase in the guarantee has already been included in the medium-term forecast. Apart from the additional loan loss provisioning requirements from the Bank’s legacy portfolios, especially from the shipping sub-segment, as announced in November 2012, these result in the losses projected in the forecast. According to the forecast, the Bank projects a loss based on international accounting (IFRS) in 2013 before projecting a profit again in 2014.
The Bank is asking its shareholders to initiate the necessary steps to increase the guarantee facility. The guarantee is to be increased by the federal states or additionally via the participation of private investors.
“Replenishment of the guarantee will strengthen our Tier 1 capital ratio on a sustained basis. This will enable the Bank to meet the requirements of the rating agencies and investors and to continue along its successful path as a bank for entrepreneurs,” said Constantin von Oesterreich after today’s meeting of the Supervisory Board.
On the basis of German GAAP, which is relevant for the holders of silent capital contributions, the Bank is expected to break even again in 2015. The Bank has issued an ad-hoc announcement to this effect today.
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