German shipping lender Norddeutsche Landesbank Girozentrale said the implementation of its proposed capital injection and further capital measures will be pushed back to the fourth quarter instead of the third quarter.
In consultation with the relevant supervisory authorities, NordLB's owners, which include the regional governments of the states of Lower Saxony and Saxony-Anhalt, concluded that the execution of the bank's planned capital measures will have to be delayed due to factors such as the complexity of the proceedings, the European Commission's pending approval and other regulatory requirements.
The Hanover-based bank, which has seen its common equity Tier 1 ratio rapidly deteriorate since late 2018, has been stepping up efforts to deleverage its shipping loan book. Earlier in August, the lender moved closer to a €3.6 billion state-backed rescue package after its owners agreed on the future split of dividends. However, an Aug. 21 Reuters report carried by Handelsbatt said the capital injection could be delayed.
NordLB noted that it is in close contact with the supervisory authorities and the EU Commission on the matter on a regular basis.
