NORD/LB achieves good earnings in 1st quarter
NORD/LB Norddeutsche Landesbank achieved consolidated earnings before taxes of EUR 189 million in the first three months of the financial year 2012. In the first quarter of 2011 its earnings totalled EUR 125 million. Consolidated earnings after taxes rose to EUR 118 million (previous year's figure: EUR 76 million).
“We have made a good start to the year and continued the previous year’s positive trend,” explained Dr. Gunter Dunkel, Chairman of the Managing Board of NORD/LB. “The good business performance was seen across all customer segments. We were able to expand our position in the markets. In the next few months we are expecting economic growth to slow down though. The first quarter should therefore not be extrapolated for the whole year.”
Interest income in the first three months of the year was at EUR 494 million well above the previous year's figure (EUR 387 million). The expense for loan loss provisions was EUR 33 million. In the same quarter of the previous year there had been net income of EUR 11 million due to a net reversal of general loan loss provisions. Commission income remained stable at EUR 42 million (EUR 42 million), while trading profit (profit/loss from financial instruments at fair value through profit or loss including hedge accounting) totalled EUR 5 million (EUR 24 million).
The profit/loss from financial assets, which was affected in the previous year by impairments to Greek government bonds, rose by EUR 33 million to EUR 5 million. The profit/loss from investments accounted for using the equity method was € -16 million (EUR 5 million). Administration expenses remained steady at EUR 281 million (EUR 282 million). Other operating profit/loss was EUR -27 million (EUR 34 million) and, as in the previous year, strongly affected by the full provision made for the bank levy.
Capital-boosting programme approaching the finishing line
NORD/LB’s capital ratios improved again as at 31 March 2012. The regulatory core capital ratio rose from 9.4 per cent at the end of 2011 to 10.2 per cent, while the total capital ratio rose from 12.6 to 13.4 per cent.
“We are currently approaching the finishing line with our current capital measures. As previously stated, we will meet the capital requirements approved last autumn by the EU summit in full and on time,” said Dunkel.
Dunkel remained cautious with regard to the economic outlook: “The operational business has also started the second quarter well. In view of the continuing uncertainty in the markets, and in particular the national debt crisis in the eurozone which is far from over, we look cautiously towards the future. We are expecting economic growth to slow down and loan loss provisions to increase again during the course of the year. In this environment we will also generate a respectable profit in 2012 as a whole, but are unlikely to repeat the previous year's exceptionally good earnings.”
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