NordLB digests corona loads better

Released on 25.11. 2021

  • After a tough time, NordLB had started an austerity course – including drastic job cuts. Photo: Julian Stratenschulte

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A few weeks ago the outgoing NordLB boss reported the “turnaround” of the long-ailing Landesbank. Now the institute is underlining the trend with fresh figures.

Hanover (dpa) – NordLB was able to reduce the financial consequences of the Corona crisis by autumn and is back in the black thanks to further savings effects.

For the first three quarters, the bank posted a bottom line profit of 122 million euros – after one Minus of 68 million euros at the end of September 2020. As CEO Thomas Bürkle said on Thursday in Hanover, an expansion of new business while reducing the necessary risk provisions was a major reason for the better development. If things go on as before, the institute will probably also be profitable for the full year 2021.

However, in relation to the renewed acute infection situation and new dangers for the economy, Bürkle warned “that the pandemic is still not over”. Already at the end of the year 2020 the Landesbank of Lower Saxony and Saxony-Anhalt had again achieved a net profit, which was, however, only wafer-thin.

After a hard time with a bloated balance sheet and major problems caused by bad ship loans, NordLB had started an austerity course – including drastic job cuts. It had to be saved by the state in the end 2019. One of the objectives was to reduce costs by 25 percent with parallel investments in new IT and digital business processes. Part of the expenses for this conversion have now been processed, and the job cuts are also covered. “The bank is much smaller and more efficient,” said Bürkle.

From the once to 6300 Employees have to leave more than half, which also earned management considerable criticism. According to the Management Board, there are currently around 4400 employees in the bank, in the end it should 3000 be. The NordLB emphasized that only «voluntary measures» such as severance payments and early retirement were used for this. million euros to book. The result for risk provisioning turned from minus 275 to plus 42 Million Euros. The bank intends to get rid of almost all of its loans in the container ship business, which is now picking up again, by the end of this year. They still amount to well 300 million euros.

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