Moody's upgrades OLB's ratings, reflecting strengthened financial profile and outlook
Senior unsecured and long-term issuer ratings improved to Baa1 from Baa2 with stable outlook
Senior unsecured and long-term issuer ratings improved to Baa1 from Baa2 with stable outlook
Rating development confirms OLB's strong and resilient business model, robust financial metrics as well as prudent risk management
OLB has recently achieved an upgrade of its long-term deposit, senior unsecured, and long-term issuer ratings by the rating agency Moody's to Baa1 from Baa2. The outlook on these ratings has been changed to ‘stable’ from ‘positive’, reflecting the confidence in OLB's strengthened financial position and prospects in a challenging economic environment.
Moreover, OLB's Baseline Credit Assessment (BCA) was upgraded to baa2 from baa3. This change further underscores the bank's improved solvency and liquidity profiles, which Moody's expects to remain robust despite external pressures. Throughout the first nine months of 2023, the period covered by Moody’s, OLB demonstrated resilience in asset quality metrics, supported by improved profitability and solid risk-weighted capitalization.
In addition, Moody's acknowledges OLB's strategic acquisition of Degussa Bank, which is expected to be completed in the first half of 2024. The acquisition will likely strengthen OLB's retail-focused deposit funding base and generate cost synergies, thereby enhancing the bank's loss-absorption capacity and limiting reliance on market funding.
"We are pleased with Moody's decision to upgrade our ratings, which reflects our continued commitment to maintaining a strong and resilient financial position," says Dr Rainer Polster, CFO of OLB. "The upgrade confirms the success of our strategic initiatives and positions us well for sustained growth and stability in the future."
The affirmation of OLB's short-term deposit and issuer ratings at P-2 is in line with the upgrade of the corresponding long-term ratings, underscoring Moody's confidence in the bank's stability and creditworthiness.
Looking ahead, the stable outlook on OLB's ratings reflects Moody's expectation of continued fundamental strength, supported by prudent risk management practices and adequate liquidity buffers. Factors that could lead to further upgrades include sustained improvements in profitability and capitalization, while potential downside risks include a pronounced decline in asset quality given the challenging macroeconomic environment or the unlikely event that the planned synergies from the Degussa Bank acquisition will not be archived.
OLB remains committed to delivering value to its customers and stakeholders while maintaining a strong financial foundation. The upgraded ratings are testament to OLB's resilience and strategic vision in navigating dynamic market conditions.
About OLB
OLB is a universal bank with a nationwide presence in Germany and more than 150 years of history in north-west Germany. Under the OLB and Bankhaus Neelmeyer brands, it serves around one million customers in the two strategic business areas of Private & Business Customers and Corporates & Diversified Lending, both in person and via digital channels. The institution has a network of 80 branches nationwide and employs around 1,700 people.
With total assets of over EUR 30 billion, OLB became a significant financial institution at the beginning of 2025 and has since been directly supervised by the European Central Bank. Since January 2026, OLB has been part of TARGO Deutschland GmbH and is thus part of the cooperative Crédit Mutuel Alliance Fédérale, one of the largest and financially strongest banking groups in Europe.
Feel free to visit us at www.olb.de and www.neelmeyer.de as well as on Facebook, Instagram and YouTube.
Contact
Britta Silchmüller
Phone: +49 (0)441 221 1213
E-Mail: britta.silchmueller@olb.de
Timo Cyriacks
Phone: +49 (0)441 221 1781
E-Mail: timo.cyriacks@olb.de
Matthias Obst
Phone: +49 (0)69 756193 44
E-Mail: matthias.obst@olb.de
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