HSH Nordbank has stayed successfully on its restructuring course, showing a substantially more pronounced improvement in earnings for the first half of 2010 than was budgeted for the period. For instance, in the second quarter 2010 the Bank generated an operating profit again for the first time.
Earnings before restructurings in the second quarter came to 60 million, up from a loss of 267 million in the previous year. While reporting a loss of 170 million in the first quarter, the Bank improved its earnings before restructuring in the first half of 2010 as a whole to a loss figure of 110 million (previous year: loss of 378 million).
The resurgence of uncertainty on the capital markets weighed on the second quarter results. By contrast, the positive performance in the Bank's original client lending business was encouraging. The systematic risk policy pursued in the past is paying off.
Taking into account the expenditure on government guarantees totaling 303 million (previous year: 150 million), restructuring expenditure of 14 million (previous year: 72 million) and an income tax rebate of 47 million (previous year: charge of 19 million), the consolidated loss at the end of the first half of 2010 worked out to 380 million (previous year: loss of 619 million).
The Core Bank, in particular, managed to improve its results within the first six months of 2010. It was profitable both before and after pro-rated restructuring and guarantee costs. Earnings before restructuring came to 307 million (previous year: loss of 13 million) and earnings before taxes to 128 million (previous year: loss of 148 million).
"In the second quarter, the Bank generated a positive earnings result in operating terms, i.e. before guarantee costs, for the first time in seven quarters. This marks an important milestone in the implementation of our strategic realignment. We reaffirm our goal of taking the Bank back into profit territory in 2011," said CEO Dirk Jens Nonnenmacher.
HSH Nordbank's half-year financial statements will be released on August 27, 2010 during a press conference.
Source: HSH Nordbank
