The Landesbank Baden-Württemberg (LBBW) in Stuttgart advocates for many companies in the region. In an interview with Börsen-Zeitung, LBBW CFO Stefanie Münz, criticizes excessive bureaucracy, sharply increased personnel and energy costs, and the growing shortage of skilled workers, which make life difficult for companies. Münz points out insufficient political support for these issues, leading to a genuine locational problem for Germany, significantly impacting sentiment.

Global-oriented clients, therefore, choose to invest and produce abroad or at least consider it. Nevertheless, Münz attests high resilience to LBBW's corporate clients, even though there has been a slight increase in loan defaults across industries in recent months. "This still happens at a relatively low level," says Münz. The bank expects the overall credit situation of companies to slightly deteriorate.

However, LBBW feels well-prepared for any challenges, having made significant adjustments in the past. "If our customers find themselves in critical situations, we are well-prepared," states Münz. Moreover, LBBW does not have significant concentrated risks in its portfolio. The further development largely depends on how quickly the German economy will recover. With even modest economic growth, companies likely have the chance to "come out with minor injuries," concludes Münz.

In the interview, the CFO revisited the credit relationship with the insolvent e-commerce holding Signa Sports. LBBW has created a "small double-digit million amount" in risk provisions and completely written off its engagement, contrary to earlier reports of LBBW being affected in the triple-digit million range.

Regarding commercial real estate financing, the bank has a manageable exposure with a maximum risk in the low double-digit million range, but the institution does not anticipate any significant impact due to existing collateral. Münz clarifies that the Signa insolvency does not constitute a significant default event for LBBW.

Concerning LBBW's performance for the full year, the CFO confirms the forecast made at the half-year mark of over one billion euros in pre-tax profit. "Perhaps there will even be a little extra on top", Münz adds.