DNB shipping losses fall, troubled loans up

The bank attributed the improvement mainly to the shipping and energy sectors, along with the Baltics and Poland.

It was not all good news for shipping in the bank's results however, as non-performing and doubtful loans stood at NOK14.9bn at the end of 2013, a NOK1bn increase on the same time the previous year. "The changes were mainly attributable to a few large shipping loans which are being closely monitored," DNB's annual report stated.

Reflecting on the shipping market, the bank's tone was on of cautious optimism. "The situation in the shipping sector remains challenging, though 2013 turned out somewhat better than expected. A cautious upturn is anticipated in the shipping markets over the coming years. "

The bank acknowledged the positive effect on the dry bulk market of Chinese iron ore restocking last year, and an improvement in tanker rates, but warned of continuing hard times in the container market.

"2013 was a challenging year in the container market due to sluggish growth in demand from Europe and the US, and the situation will probably remain unchanged in 2014. A number of new ships were delivered in 2013, and the fleet is expected to expand further in 2014 and 2015."

Add Seatrade Maritime News to your Google News feed.