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NORD/LB FY'15 profit rises YOY as provisions decline

on April 7 reported full-year 2015 consolidated profitattributable to owners of the company of €547 million, up from €303 million inthe year-ago period.

Netinterest income declined on a yearly basis to €1.97 billion from €1.99 billionin 2014. Net commission income rose over the same period to €234 million from€185 million.

Thecompany recorded a trading loss of €82 million during 2015, compared to aprofit of €730 million in 2014. Profit from the fair value option amounted to€218 million, compared to a loss of €643 million a year earlier.Profit from hedge accounting was €144 million, up from €43 million a year ago,while profit from financial assets was €72 million, compared to a loss of €3million in 2014.

Loanloss provisions for the year dropped to €698 million from €735 million,attributable primarily to a net reversal of general loan provisions in theamount of €67 million, compared to a net allocation of €19 million in 2014.

Thebank noted that "the continuation of the shipping crisis" resulted ina further increase in valuation allowances on exposures and risk provisioningfor the sector. Loan loss provisions in the ship customers segment totaled €916million in 2015, compared to €718 million in 2014, and the consolidated lossattributable to the division widened to €533 million from €420 million.

For2015, NORD/LB's ROE was 8.7%, up from 3.8% in 2014.

Asof Dec. 31, 2015, the company's CRR common equity Tier 1 capital ratio stood at13.07%, compared to 10.66% at the end of 2014. The total capital ratio was16.72% at 2015-end, compared to 13.18% at Dec. 31, 2014.