HAMBURG Aug 29 German state-backed lender HSH
Nordbank on Friday said it is confident of its capital
cushion but could not exclude a risk of falling short in a
European Central Bank test of the landesbank's ability to
withstand financial shocks.
"HSH Nordbank has a resilient capital base with which it is
well prepared for the ECB's Comprehensive Assessment and the
related Asset Quality Review as well as the stress test," the
lender said in a statement on its half-year results.
HSH has a heavy exposure to the troubled market for shipping
loans that analysts have said would make the tests particularly
The lender said its Common Equity Tier 1 ratio - a measure
of its capital strength - stood at 12.8 percent at the end of
June, including the effect of a loss guarantee buffer provided
by its state owners, worth 2.8 percentage points.
However, HSH also said in a report on risks that it could
not exclude new risks might emerge in the health checks that
could cause it technically to fall short of the minimum 8
percent core capital ratio required by the ECB in the tests.
(Reporting by Jan Schwartz; Writing by Jonathan Gould; Editing
by Christoph Steitz)