Corporates Business Unit benefits from strong market position

  • Growing net commission income
  • Structured finance deals in demand

Hamburg/Kiel, April 9, 2008 - The encouraging earnings performance of the Corporates Business Unit (BU) made a considerable contribution to consolidated earnings: at EUR 524 million, the BU’s earnings were up more than 40 percent on the previous year’s figure (EUR 375 million). The gain was driven by buoyant demand for finance solutions and a favorable risk situation in the lending business.

Net interest income was boosted by generally high corporate spending and the successful acquisition of new clients. These factors more than offset the impact of the pressure on margins. Extremely intense competition on terms and conditions along with rising liquidity costs were the consequence of the upheavals on the financial markets in the course of the second half of the year.

Net commission income grew by 10,8 percent to EUR 152 million (2006: EUR 137 million). This growth is attributable, above all, to the Bank’s successful activity in the structured finance business. In Germany and Scandinavia, HSH Nordbank benefited from a large number of corporate mergers and its strong market position in leveraged finance. On top of this, it expanded its activity in project finance deals with a focus on renewable energies. Since January 2008, this business segment has been integrated into the new Energy Business Unit. Net writebacks of risk provisions thanks to the favorable economic setting and more stringent risk management exerted a positive impact. Income of EUR 121 million resulted from the sale of the share in IVG Immobilien AG.

Since January 2008, with a view to pooling areas of expertise, the Corporates BU has also included HSH Nordbank’s successful business with leasing companies.

“Our know-how, long-standing experience and the close dialogue with our costumers are the foundations on which we will continue to expand our business,” said Bernhard Visker, HSH Nordbank’s Management Board member responsible for business with corporate clients. “In view of the fact that our clients’ order books are well-stocked and of our leading market position with respect to medium-sized businesses in Northern Germany, we expect this successful business performance to continue,” added Visker.

A key driver in this respect will be the targeted increase in the number of innovative products, as need of businesses for individual, structured finance solutions is likely to increase further.

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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