BERLIN/FRANKFURT, Jan 5 (Reuters) - German state-backed lender NordLB has decided not to sell its property lender Deutsche Hypothekenbank after all, a person familiar with the matter said on Friday.
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.
But NordLB determined in the end to hold on to the unit’s promise of regular profits rather than the one-off gains of a sale, according to the person, who spoke on condition of anonymity because discussions are still taking place with the bank’s owners.
A spokesman for NordLB said: “There is no final decision.”
A spokesman for the finance ministry of Lower Saxony said that the relevent bodies must still make a final call. The state holds nearly 60 percent of NordLB.
Platow Brief first reported the decision. (Reporting Klaus Lauer and Hans Seidenstuecker; Writing by Tom Sims; Editing by Douglas Busvine)