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Hanover, Germany-based Norddeutsche Landesbank Girozentrale, or NORD/LB, would sell Deutsche Hypothekenbank AG only if it would significantly boost its capital ratios, according to Deputy Chairman Hinrich Holm.
A potential sale of Deutsche Hypothekenbank, one of Germany's largest mortgage banks with [euro]25 billion in total assets, was mentioned in a Süddeutsche Zeitung report and cited by other German media. A NORD/LB spokesman was quoted as saying it was too early to comment on specific units, but that the One Bank restructuring program announced in April included the review of all operations as well as existing subsidiaries.
Speaking on a first-quarter earnings call May 30, Holm said NORD/LB would only off-load the subsidiary if it had a tangible positive effect on the former's common equity Tier...