Hamburg-based Warburg Bank reports a growing shipping business. The financing volume is to be expanded.
Warburg Bank‘s shipping business once again achieved above-average growth in 2023 and significantly exceeded its turnover and earnings targets. The department headed by Jens Dose and Christian Speer thus contributed to the bank’s good overall annual result for 2023, Warburg Bank announced. [ds_preview]
“We were able to significantly increase the number of new client relationships last year,” reports Jens Dose. In a good to very good market environment for shipping, it was not only the commission business in foreign payment transactions that increased. The overall good liquidity situation of maritime customers led to a significant increase in customer deposits,” adds Christian Speer. This, in turn, led to an increase in interest income.
Warburg wants to grant more loans
Demand for ship financing remained slightly below expectations, in particular, due to the high liquidity of customers with strong credit ratings. In the future, the Hamburg-based private bank intends to make higher financing volumes available to shipping company clients. These will be taken on the bank’s own books as well as placed as private debt with institutional investors.
Founded in 1798, the bank generated a positive annual result of €10m in the 2023 financial year (previous year: €-34.6m). The main driver was net interest income. This more than compensated for the lower-than-planned net commission income, which declined due to the tense economic climate and a very weak year for capital market transactions.
“Our 225th anniversary year went well overall. This shows us that we are on the right track and that the measures we have taken as part of our strategic realignment are taking effect,” said Markus Bolder, member of the Management Board of M.M.Warburg & CO.
The decisive factors for the cost savings were also a volunteer program, which reduced personnel expenses by around 10% compared to the previous year, as well as the closure of two offices and adjusted rental agreements.
Overall, non-performing loans were significantly reduced. “We have consistently continued to reduce the bank’s risk over the last few years and are therefore not affected by the current turmoil on the market for real estate financing,” says Bolder.
