HSH Nordbank, the world’s largest shipping bank, secured new ship loan agreements worth €10Bn in 2006 compared with €7.3Bn the year before. However, its increased marine loan portfolio - which now stands at €30Bn - has been yielding lower returns due to tough international competition, sustained pressure on interest margins and higher risk provisions. The operating result after loan loss provisions at its shipping division eased by 5% to €248M last year, while the return on equity dropped by 2.6 percentage points to 17.5%. Although finance demand from ship owners is expected to remain firm, HSH Nordbank will focus more on the diversification of its transport portfolio this year, chief executive Hans Berger declared today. “We want to go beyond shipping assets and look more after seaborne trade and commodities as well as ports and infrastructure,” said Berger.
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