Norwegian shipping lender

Oslo based shipping lender Pareto Bank is aiming growth as boutique shipping lender. According to Norwegian shipping lender Pareto Bank, shipping markets are not well served and calling as “under-served” market. Niche Norwegian shipping lender focuses primarily on Norwegian medium-sized shipping companies. Pareto Bank’s maritime financing is about NOK 782 million ($349 million) in Q4 2019. Pareto Bank has been in the shipping and offshore finance market since 2011. Up to now, Norwegian shipping lender Pareto Bank has financed 25 ships. According Pareto Bank, there is still room for growth and many opportunities in the shipping market. Pareto Bank has a cautious approach, with a target loan to value of 50%. Pareto Bank is aiming to finance quality tonnage and main customers are Norwegian shipowners. Norwegian shipping lender prefers shipping companies with strong balance sheets. Furthermore, Pareto Bank prefers financing ships with liquid second-hand markets and high designs. Maximum maritime exposure is 15% of the Pareto Bank’s total. Currently, Pareto Bank maritime exposure is 5%. In 2019, Pareto Bank reported net profit of NOK 397 million, up from NOK 330 million in 2018. On the other hand, in 2019, Pareto Bank reported loan impairments of NOK 29 million, up from NOK 4.6 million in 2018. Pareto Bank reported a 14.3% return on equity and net interest income of NOK 680 in 2019, up from NOK 554 million in 2018.