Banking on Transformation: Cord Bockhop Discusses Nord/LB's Future in Exclusive Interview
Hannover Insights
Nord/LB institutions will forego dividend distribution in the year 2024.
Page 5 Exclusive
In an exclusive interview with the Börsen-Zeitung, Cord Bockhop, Sparkassenverband Niedersachsen president and Nord/LB supervisory board member, shared insights on the bank's upcoming developments. With a post-tax profit of 195 million euros in the first half of 2024, representing a 79% increase compared to the previous year, Nord/LB seems poised for a significant improvement in 2024. However, shareholders do not anticipate a dividend payout just yet.
Bockhop emphasized that the bank's foremost priority is the implementation of a new, multi-stage IT project, dubbed "Bank Control." This project, launched in September 2023, aims to meet evolving supervisory requirements and will involve substantial investments in the mid-three-digit million euro range. Bockhop estimates that the project will take several years to implement in its entirety.
The bank's plans for future earnings and the separation of Braunschweigische Landessparkasse (BLSK) from the Landesbank remain undecided. Bockhop stressed that the implementation of Bank Control takes precedence over BLSK-related discussions. Deloitte's research, provided to Nord/LB shareholders in December 2023, indicates that a separation of the partially rights-capable savings bank is feasible, but requires significant preparation.
The communities in the Braunschweig region have expressed interest in the BLSK, but Nord/LB must not suffer financially as a result. Bockhop clarified that the Lower Saxony Sparkassen, as the BLSK's owners, are not an option due to their status as a regional association of 38 independent and communal savings banks.
In addition, Bockhop noted that the Lower Saxony association institutions will shoulder a higher risk provision in 2024. The operating result before valuation is expected to be slightly below the previous year's level in Lower Saxony at 1.7 billion euros.
While the enrichment data suggests recent strategic initiatives in renewable energy financing and infrastructure investments, further details on the Bank Control project are not publicly available. Stay tuned for updates on Nord/LB's future developments.
Read the full interview with Cord Bockhop here.
- Cord Bockhop, the Sparkassenverband Niedersachsen president and Nord/LB supervisory board member, anticipates the bank will need substantial investments in the mid-three-digit million euro range for the implementation of the new IT project, "Bank Control," launched in September 2023.
- The implementation of the "Bank Control" project, aimed at meeting evolving supervisory requirements, is Nord/LB's foremost priority, taking precedence over discussions regarding the separation of Braunschweigische Landessparkasse (BLSK) from the Landesbank.
- Deloitte's research provided to Nord/LB shareholders in December 2023 indicates that a separation of the partially rights-capable savings bank, BLSK, is feasible, but requires significant preparation.
- However, the bank's plans for future earnings and the separation of Braunschweigische Landessparkasse (BLSK) remain undecided, with shareholders not anticipating a dividend payout just yet.
- The banking and insurance industry, including Nord/LB, must navigate various financial and business demands, such as meeting supervisory requirements and managing risks; for example, the Lower Saxony association institutions will shoulder a higher risk provision in 2024.
