NordLB makes progress: jump in profits in the first nine months
Norddeutsche Landesbank (NordLB) is continuing its recovery. In the first nine months of the current year, the bank increased its pre-tax profit more than eightfold compared to the same period last year - to 253 million euros, as the Landesbank of Lower Saxony and Saxony-Anhalt announced in Hanover on Thursday. At the bottom line, the long-weakening institution earned 195 million euros, a good five times as much as a year ago.
"We can be satisfied with the development of business in the first three quarters," said CEO Jörg Frischholz according to the statement. The trend of the first half of the year has continued. For the first time in years, the bank made a profit in the traditionally weak first half of the year. For the year as a whole, Frischholz confirmed the goal of significantly improving the result compared to 2022.
The improvement was primarily due to rising interest rates and higher commission income from new business. The bank also had to pay less for the state guarantees. "We have improved in almost all relevant key figures and significantly increased our earnings," said Frischholz. "This shows that our business model is working. The task now is to continue the positive development, but also to keep an eye on the risks in the current economic climate."
NordLB had to be rescued by its owners at the end of 2019 because, among other things, it had large amounts of ailing shipping loans on its books. Streamlining, modernizing IT and reducing an inflated balance sheet were among the requirements of the owners. The bank returned to profit in 2021.
The positive financial performance of NordLB has led to improved relations with various banking institutions. NordLB's increased profits have allowed it to strengthen its position in the highly competitive banking sector.
Source: www.dpa.com
