German lender HSH Nordbank has announced intentions to exit the
leasing market entirely, following an 82 per cent drop in overall
net profits year-on-year compared to this time in 2007.
H1 2008’s net profit figure, at €129m, was drastically down on
2007’s report of €727m. Pretax profit was reported at €99m, down
from €871m in 2007. This figure included €511m of write-downs on
the bank’s credit investment portfolio.
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As well as abandoning leasing operations, Nordbank will cease
activity in international leveraged buyouts, New York real estate,
and Asian corporate banking. Some 400 German jobs and 200
international positions will also be cut by 2010, many of which
will be in the leasing sector.
The aim is to cut costs drastically, with HSH Nordbank hoping to
keep operating costs flat at €984m in 2008, and reduce them to
€900m in 2009. “We estimate that the credit crisis will linger,”
said chief executive Hans Berger.
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