NordLB is looking to bring its long-struggling Bremen subsidiary back from the brink. The state-backed bank owns 54.8 percent of Bremer Landesbank, which needs hundreds of millions of euros in fresh capital to survive.
Bremer Landesbank and NordLB, two regional banks partially owned by German states home to the country’s main ports Bremen and Hamburg, have suffered from a downturn in the global shipping industry, one of the banks’ main clients.
Faced with overcapacity since the financial crisis of 2008, shipping companies have seen revenue drop and some were unable to service their loans, triggering losses at the banks.
To manage fresh charges on shipping loans, which could total €700 million, or $786 million, NordLB’s non-executive supervisory board chief, Peter-Jürgen Schneider, told Handelsblatt his institution would be willing to take over Bremer Landesbank entirely.