Big ship financier HSH with major loss

By Finance

The ship financier HSH Nordbank with a major loss for 2012 because of spiralling loan risks. The information is for a pre-tax deficit of €185M ($242M), two years ago the loss was €206M. Net interest income grew by 13% to €1.52Bn last year amid brisk new business volumes in general corporate funding and higher net interest margins.
The world financial crisis and the collapse in shipping industry forced HSH Nordbank to book a loss of €656M in loan loss provisions, against write-backs of provisions making €398M in the previous year.
Money received from the bank shipping loan portfolio made the loss €137M before tax from a profit of €247M 2 years ago. In near feature the company predicts risk costs to increase further until next year as the container ship, drybulk and tanker markets remain in the doldrums. It is also believed that loan loss provisions combined with higher fees for state guarantees will result in another loss for this year.