Since the end of 2017 NORD/LB and its holders are working on a comprehensive concept for repositioning the Bank and strengthening its capital. This is intended to prepare the Bank for further increases in regulatory requirements and to permanently strengthen its crisis resilience and competitiveness. Various far-reaching options are currently being considered in this process. These include a formal bidding process currently in progress to create a basis for a possible participation by external investors.
In the course of this bidding process four bids have been received in recent weeks from potential investors. NORD/LB’s holders decided yesterday evening to take soundings with these bidders in the next few days about important framework conditions before deciding in the near future which bidders to enter into detailed negotiations with. The Bank and its owners are seeking an outcome which is not only as fast as possible but (and above all) the best possible one for NORD/LB. Due to the complexity and different strategic directions of the bids, it is possible that a final decision on a concrete model may not be made until the beginning of next year.
The Bank and its owners are also still open to models other than a minority participation by external investors, and are continuing discussions with various partners. The bidding process has also provided valuable information for these talks. Progress is also being maintained towards reducing the NPL Ship Financing portfolio. At the same time, the Bank is continuing to pursue its One Bank Group-wide transformation programme, which scrutinises all its processes, products and structures and is intended to ensure NORD/LB’s competitiveness over the long term with the focus on earnings capacity, risks and costs. The Bank and its owners are maintaining a close dialogue with the banking regulatory authorities and the European Commission on all options and measures.
About NORD/LB
With total assets of € 155 billion, NORD/LB Norddeutsche Landesbank is one of Germany’s leading merchant banks. Its core business segments include structured finance in the energy and infrastructure sector, ship and aircraft finance, corporate client business, commercial real estate finance, capital market business and private and commercial client business including private banking. The Bank has headquarters in Hanover, Braunschweig and Magdeburg. NORD/LB also has branches in Bremen, Oldenburg, Hamburg, Schwerin, Düsseldorf, Munich and Stuttgart. Outside Germany, NORD/LB is active in Luxembourg with a covered bond bank (NORD/LB Covered Bond Bank) and also has offices in London, New York, Singapore and Shanghai.
