NORD/LB achieves significant increase in earnings before taxes
NORD/LB Norddeutsche Landesbank increased its earnings before taxes significantly in the financial year 2014. According to provisional figures, it achieved a consolidated profit before taxes of € 276 million in 2014. In 2013 its earnings before taxes had totalled € 140 million. It is expected that its consolidated profit after taxes for 2014 will total € 205 million. The previous year’s figure (€ 224 million) was boosted by a special IFRS tax effect.
A key factor in the improved profit performance was net interest income, which, based on the provisional figures, rose to € 1,985 billion and was therefore € 54 million above the previous year’s figure (€ 1,931 billion). Net allocations to loan loss provisions were reduced compared to the previous year by € 111 million to € 735 million (€ 846 million). Ship financing again accounted for a major share of this. Administrative expenses fell by 4 percent to €1,125 million in the course of an Efficiency Improvement Programme.
According to provisional figures, total assets were reduced further and fell from € 200.8 billion at the end of 2013 to € 197.6 billion as at 31 December 2014. Risk-weighted assets totalled € 69.2 billion (€ 68.5 billion). The Common Equity Tier 1 ratio was 10.7 per cent (simulated comparative value as at 31 December 2013: 10.3 percent), while the total regulatory capital ratio was 13.2 per cent (13.2 per cent). Both ratios have been reported since 1 January 2014 in accordance with the new rules of the Capital Requirements Regulation (CRR) based on IFRS.
NORD/LB will present the full and final consolidated financial statements for 2014 at the Annual Press Conference on 28 April 2015.
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