Germany’s NordLB bank expects to suffer impairments to its €18bn ($19.1bn) shipping loan portfolio over the next three years, reports say.
Chief executive Gunter Dunkel told a press conference in Hannover that the regional state-backed lender has planned for “substantial” impairments in 2016, 2017 and 2018, Reuters reports.
Dunkel added he expects a decline in the amount of cash NordLB must set aside to cover non-performing loans during the next three years, and this amount could even drop substantially in 2018.
The chief executive said his bank was taking a more conservative tack than outside market researchers.
