Sustainable success through diversified business areas
Business with German and international corporate clients continued to grow in 2024. Jens Thiele, Head of Project Finance & Corporates, provides insights into his strategy and explains what is important to customers.
5 November 2024 | Reading time 8 minutes
Hamburg Commercial Bank’s Corporates business has continued to develop successfully despite a challenging market environment. What advantages do you offer your customers?
Jens Thiele: We have a strong and dedicated team and our processes are designed to act quickly and precisely – this gives us a competitive advantage. When we agree to provide financing, we also reach our goal. Our business partners really appreciate this, as they know that we work reliably and efficiently. We don’t do mass business, but have a very selective approach. Our customers benefit from our in-depth knowledge of the industry and our ability to offer customized solutions. Thanks to the combination of experienced employees, efficient processes and convincing services, we are well positioned for further growth.
Which business areas are particularly interesting for the bank?
Jens Thiele: We are active in various sectors and are consciously focussing on good diversification. In general, we are interested in financing in business areas that are relatively independent of economic cycles. In addition, companies should have sufficient liquid funds to compensate for increases in interest rates or economic weaknesses, for example. We are risk-conscious and by carefully selecting our projects, we ensure that we have a stable and sustainable business base. This enables us to be successful even in these economically uncertain times.
Can you give some examples of successful deals?
Jens Thiele: We have already completed two dozen transactions in our corporates business this year. In addition to Germany, we are also active in Scandinavia, the Benelux countries, the UK and selectively in the US. For example, we financed a large veterinary clinic chain in Europe in the healthcare sector. We have also concluded transactions in the trade and service sectors. But there are also sectors where the bank deliberately keeps its distance, such as the automotive industry. It is currently still too unclear how things will develop in this sector in view of the increasing trend towards electric vehicles and changes in consumer behavior.
The bank has recently positioned its Corporates business much more internationally and diversified further. Has this trend continued?
Jens Thiele: We operate our financing activities from our headquarters in Hamburg as well as from our offices in London and Luxembourg. Since we started Corporates International in 2020, this segment has grown continuously. Our portfolio currently stands at just under 3 billion euros. Not a single transaction has failed – and that in turbulent times. This shows that our strategy was right from the start.
Germany is and will remain our core market. We identify strongly with Hamburg and the region. Our success confirms this decision. Our commitment to the German market is reflected in continuous investment in local projects and support for regional companies.
How was business in Germany?
Jens Thiele: In Germany, we have been growing our new business again for two years. We were particularly active in the factoring and leasing business – including bicycle leasing. Interestingly, we concluded many transactions outside our home market in northern Germany. This shows that the bank has an attractive offering.
HCOB has invested a lot in payment transactions in recent years. Has this paid off?
Jens Thiele: Fast and reliable payment processing is essential for companies – whether national or international, whether in euros or foreign currency – therefore we have invested massively in this area and are currently gaining 500 new customers per year. The deposit business is also doing well. To become even better, we are continuing to invest in our new customer platform this year. It will offer our customers considerable added value and enable them to manage their financial transactions even more efficiently and transparently. We still have big plans in the payments segment. The same applies to our trade finance business, which is supported by our good “A” rating.
Sustainability is an important issue for all companies. Is there financing that contributes to this?
Jens Thiele: Yes, we have financed a circular economy project, for example, which involves generating energy from plant and waste materials. Such projects not only make economic sense, but also contribute to greater sustainability. We are proud to be part of these important developments and to support sustainable solutions.
What are your prospects for 2024/2025?
Jens Thiele: The year remains challenging due to weak economic development in Germany and Europe as well as ongoing geopolitical conflicts. Nevertheless, we are open to new business and will once again exceed EUR 1.5 billion by the end of 2024 – but we are approaching all projects with the necessary caution.
The services we can provide you
We are equally concerned with our customers’ assets and liabilities, as both sides are important for an active business relationship. Our high level of international expertise with our small European network in London, Luxembourg and Piraeus reflects international standards as well as national characteristics.
We manage interest rate and currency risks for you using tailor-made products. We will work with you to find the optimum solution. This allows you to hedge risks, improve your company’s liquidity and strengthen your balance sheet.
At the heart of your business payment transaction flows is an HCOB account with customized, international and muli-currency card solutions that together facilitate complex payment flows.
High-performance payment transactions are all about being able to execute transactions for tens of thousands of your customers simultaneously in various currencies, with fast processes in eBanking and modern subscription procedures via app.