Strong solidarity and cooperation between group members based on their ownership and mutual protection scheme. Solid retail market position of the member savings banks in two German states, and a risk averse relationship-based business approach by its central institution Landesbank Hessen-Thueringen (Helaba). Robust capitalization from sound earnings retention over the past few years. High cost base. Revenue margin pressure on the deposit-funded business model. Concentration risk in commercial real estate (CRE) lending by Helaba. The negative outlook acknowledges the challenges that the S-Finanzgruppe Hessen-Thueringen / Landesbank Hesse-Thueringen (SFHT) group faces in the next 12-24 months from the weakened operating conditions amid the COVID-19 pandemic, combined with already increasing economic and industry risks for the German banking sector. We could lower
