The preparations range from the banal, like adopting international accounting standards and quarterly reporting, to the difficult, like ensuring that the bank is profitable and creditworthy enough. A quick study of HSH Nordbank – a product of the 2002 merger of the Landesbanken for Hamburg and Schleswig-Holstein – shows that the bank is ready to float. Two years after losing its state guarantee, Moody’s gives it a double-A long-term debt rating. In terms of profitability, HSH Nordbank sits between Nord/LB and LBBW, with a RoE of 15%. “We also plan to raise RoE on a consistent basis to 17% in the near future. This is a better approach than 20% in one year, 11% the next and 15% after then,” says Mr Berger, speaking to The Banker during a business trip to Frankfurt.
The story behind HSH Nordbank is equally compelling. Internationally, it is known as the world’s leading shipping financier, with a credit portfolio of €21bn. What many outside of Germany may not know, however, is that the bank is also a leading commercial real estate financier, with a credit volume of €27bn and operations in six European countries (excluding Germany) and in the US. Like Nord/LB, HSH Nordbank is a leading aviation financier and has a big presence in the Baltic region – albeit serving corporate rather than retail clients. In all, 60% of its revenues come from outside Germany.
