BERLIN, Jan 18 (Reuters) - German state-backed lender NordLB and its owners have decided not to sell property lender Deutsche Hypothekenbank after all, a spokesman for NordLB said on Thursday, confirming a Reuters report.
“Analysis has shown that the future earnings potential of Deutsche Hypo is still high and stable, so the long-term benefits of keeping it outweigh the short-term advantages of a sale for the capital ratio,” the spokesman said.
For months, NordLB had been weighing a possible sale as it sought to repair its balance sheet following heavy writedowns related to its exposure to bad shipping loans.
A person familiar with the matter had told Reuters on Friday that NordLB decided in the end to hold on to the unit as it promises regular profits. (Reporting by Klaus Lauer; Writing by Maria Sheahan; Editing by Ludwig Burger)