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NordLB Boosts Shipping Provisions Five-Fold, Warns of High Loss

  • German lender sets aside 1 billion euros to cover defaults
  • Bank sees first loss in seven years on slump in shipping

Norddeutsche Landesbank boosted provisions for bad loans nearly fivefold to 1 billion euros ($1.1 billion), as Germany’s biggest shipping lender prepares for its first full-year loss since 2009.

NordLB, controlled by the state of Lower Saxony, posted a loss of 406 million euros in the first half as it battles a prolonged slump in maritime markets, including eight years of crisis in the container segment. That compares with a profit of 290 million euros in the same period last year.