DGAP-Adhoc: Norddeutsche Landesbank Girozentrale: Owners (Träger) of NORD/LB focus on a joint solution with the DSGV. Risk provisions in connection with a ship financing portfolio transaction lead to annual loss and temporary decrease in capital ratios.

2019. február 02., szombat, 18:38





DGAP-Ad-hoc: Norddeutsche Landesbank Girozentrale / Key word(s): Corporate Action/Preliminary Results


Norddeutsche Landesbank Girozentrale: Owners (Träger) of NORD/LB focus on a joint solution with the DSGV. Risk provisions in connection with a ship financing portfolio transaction lead to annual loss and temporary decrease in capital ratios.


02-Feb-2019 / 18:38 CET/CEST


Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.


The issuer is solely responsible for the content of this announcement.




 







Ad hoc announcement of inside information according to Art. 17 of Regulation (EU) No. 596/2014
Norddeutsche Landesbank - Girozentrale -:


Owners (Träger) of NORD/LB decide to focus on a joint solution with the DSGV in the public sector.


Risk provisions in connection with a significant ship financing portfolio transaction lead to an annual loss and a temporary decrease in capital ratios.
Hannover, 2 February 2019:


At today"s meeting of the owners (Trägerversammlung) of Norddeutsche Landesbank - Girozentrale - ("NORD/LB") - the State of Lower Saxony, the State of Saxony-Anhalt, the Association of the Savings Banks of Lower Saxony (Sparkassenverband Niedersachsen) as well as the Holding Association of the Savings Banks of Saxony-Anhalt (Sparkassenbeteiligungsverband Sachsen-Anhalt) and the Special Purpose Holding Association of the Savings Banks of Mecklenburg-Western Pomerania (Sparkassenbeteiligungszweckverband Mecklenburg-Vorpommern) (together referred to as the "Owners" (Träger)) -, the Owners decided, following a detailed evaluation of a joint bid by two financial investors submitted as part of a bidding process, to postpone this option for the time being and to focus on a joint solution with the German Savings Banks and Giro Association (Sparkassen- und Giroverband e.V.) ("DSGV") in the public sector.


After representatives of the DSGV and the Owners have discussed the key points of this proposed solution for the capital strengthening and realignment of the bank with the relevant supervisory authorities on 1 February 2019, this solution will be specified in further meetings with the DSGV and must be discussed with the relevant supervisory authorities as well as the EU Commission under aspects of State Aid Law.


In light of these forthcoming measures to strengthen the capital base of the bank, the management board of NORD/LB and its Owners have decided in their today"s meetings to transfer a significant part of the ship financing portfolio of NORD/LB in a volume of approximately EUR 2.7 billion to an external investor by way of a portfolio transaction. This portfolio contains approximately 90 % of non-performing loans ("NPL").


In addition, the management board of the bank has decided to create a comprehensive additional risk provision for the entire NPL portfolio for the 2018 financial year, resulting in a total risk provision for the 2018 financial year of up to EUR 2.5 billion.


Based on the currently available figures for the 2018 financial year, this will result in an annual loss for the NORD/LB group of approximately EUR 2.7 billion after tax. The result in accordance with HGB (German Commercial Code (Handelsgesetzbuch)) for the 2018 financial year will show an annual loss of approximately EUR 2.5 billion after tax.


The aforementioned loss for the 2018 financial year will have a corresponding effect on the capital ratios in such a way that the common equity tier 1 capital ratio will decrease to about 6 to 6.5 % and thus the thresholds required by supervisory law will temporarily not be met. The supervisory authority has been informed about this and will request a specific capital plan from NORD/LB in the coming weeks. NORD/LB will draw up such a capital plan on the basis of today"s resolution by the Owners with regard to the DSGV"s proposed solution and assumes that with the implementation of the measures contained therein for the capital strengthening and realignment of the bank, the capital ratios will again increase significantly and meet all regulatory requirements.


Norddeutsche Landesbank - Girozentrale -


Friedrichswall 10


30159 Hannover


Germany
A complete overview of outstanding securities issued by NORD/LB is available at the website of NORD/LB - at: https://www.nordlb.de/kapitalmarktportal/endgueltige-bedingungen/





Contact:

Chief Compliance Officer

Dr. Michael Lange

Georgsplatz 1

30159 Hannover

0511 361 2228








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Language: English
Company: Norddeutsche Landesbank Girozentrale

Friedrichswall 10

30159 Hannover

Germany
Phone: +49 (0) 511 361-0
Fax: +49 (0) 511 361-2502
E-mail: info@nordlb.de
Internet: www.nordlb.de
ISIN: DE000NLB8KA9
WKN: NLB8KA
Listed: Regulated Market in Frankfurt (General Standard), Hanover; Regulated Unofficial Market in Berlin, Hamburg, Munich, Stuttgart; London, Luxembourg Stock Exchange





 
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