Broadly diversified and yet highly specialised: What
makes NORD/LB´s business model so special and
what strategy it will apply in the year 2017 to keep it,
on track for profit are explained by the new Chairman
of the Managing Board Thomas S. Bürkle.
Developing solutions with competence.
External factors cannot always be influenced.
Though the way in which they´re dealt with can be.
We meet challenges – such as those continually
posed to us by the shipping sector – with a cool
head and circumspect decision-making.
A bank provides answers.
Digitalisation, low interest rates, international orientation:
Dynamic times raise questions – for
our customers, business partners and employees.
NORD/LB has an ear that´s open to everyone and has many good answers.
On our own steam
Interview with Thomas Bürkle
Question: Mr Bürkle, you assumed the reins as Chairman of the Managing Board of NORD/LB at the start of the year. Would you have wanted the times to be different for your start?
Thomas Bürkle: In life, it´s not about wishing, it´s about doing. Of course, the environment in which we now find ourselves isn´t easy. And of course the loss that NORD/LB posted in 2016 is painful. Important to remember though is the following: The loss is not the result of a weakness in operations, but is rather the necessary consequence of a massive cautionary measure. It is therefore more a sign of strength and certainty of action and not an indication of weak profitability or of a defect in the business model.
Hedging risks. Optimising portfolio quality. Improving efficiency.
At the beginning of the year, NORD/LB´s ship financing portfolio stood at € 19 billion. For us, this was the starting point for a significant correction in course.
€ 16.8 bn totalled NORD/LB’s Shipping portfolio as at 31 Dec 2016.
12 % decrease of shipping portfolio.
€ 12 to 14 billion
We plan to reduce our ship financing portfolio to € 12 to 14 billion by the end of 2018.
€ 520m increase of portfolio due to a stronger USD.
3% rise caused by the USD effect.
€ 420 million
€ 420 million in new business in the shipping sector in 2016. A contradiction? No, targeted investment in high growth segments – and thus a contribution to shoring up the future of this business area.
50 % cruise ships and ferries
20 % special tonnage
30 % tanker
In this year, we again expect positive earnings performance. We have set the course for this and for portfolio reduction with our risk provisioning measures.
Change of course with sustainable strategy
The hope of a recovery on the shipping markets was not realised in 2016 either, after now eight years of stormy seas. On the contrary, the situation once again intensified. For a Bank like NORD/LB, which has been an active lender to the shipping industry for over 45 years, these fundamentals have obviously had a considerable impact on earnings. For us, 2016 was the starting point for the implementation of a comprehensive set of measures for reorganisation in this sector.
- Increase in loan loss provisions
- Reduction of ship finance portfolio
- Selective and high-quality new business
For an improved risk quality and a more profitable portfolio in the long term: In new shipping business, NORD/LB is increasingly focused on popular special ships. In particular, these are certain types of ferry and high-growth cruise ships.
Die Transformation schreitet voran
The number of ships divested from our portfolio in 2016.
€ 2.2 billion
The extent by which the ship portfolio was scaled back in 2016.
The number of ships acquired in the fields of cruise ships, ferries, tankers and special tonnage to the detriment of commercial shipping.
The extent of cover for non-performing loans through loan loss provisions.
Dr Ulrich Erxleben, Founding Member of Smacc
“Is NORD/LB ready for the digital future?”
For many years, we have had a flexible response to the changing requirements of clients and markets and have structured our offers accordingly. Of course, we are not a young start-up, but a bank which looks back on a long tradition – and as such, we can contribute towards the ascent of new and innovative ideas.
BLSK direkt: Service on all channels
The BLSK direkt central service number for private clients is well-known in Braunschweig.
Satisfaction level with BLSK direkt a revealed by regular surveys – a top score amongst savings banks!
Internet branch orders recorded by BLSK in 2016. BLSK leads in terms of the benchmark used by the Sparkassenverband.
Head of Finance Flensburger Brauerei
“Interest rates are at an historic low – what solutions does NORD/LB offer?”
Since classic investments are often not an option, we support our institutional, business and private banking clients in their search for alternatives. Depending on their investment profile and target, this may be a fund, an aircraft investment, an investment in renewable energy or otherwise the recommendation that now is the right time to invest in one’s own efficiency.
Targeted and strategically intelligent investment
Credit Asset Management: Partner for Alternative Investments
Renewable energies as attractive field of investment
Future-oriented investment in energy efficiency
“What opportunities does NORD/LB use on international markets?”
We know no limits in customer care. We want to be not only where our customers are – but also to accompany them to the places where they do business as an expert partner. Accordingly, we have expanded our presence in our core markets and have gained new business fields as a result.
138 Market Street #36-03 CapitaGreen
Dr Sandra Reich,
Head of German Desk Asia Pacific (ex-China)
“We build bridges from Germany to Asia”
A conversation with Dr Sandra Reich
How do you describe the function of the German Desk?
Ms Dr Reich: Basically, we aim to be where our customers are. Only in this way are we able to develop solutions for needs which arise here on site. In this way, we build bridges from Germany to Asia. We aim to make the customer’s life easier by providing support with individual financing enquiries and accompanying them as a trusted partner in what is often a new environment for them.