16/12/2013
Commerzbank today signed an agreement on the sale of a credit portfolio of 14 chemical tankers to an affiliate of certain investment funds of Oaktree Capital Management L.P. The transaction, which exclusively encompasses non-performing loans, has a total volume of approximately EUR 280 million (US$ 376 million). It was agreed that confidentiality be maintained on further details of the agreement.
Following the sale of Commerzbank’s portfolio of chemical tankers, the risk profile improves in the Non-Core Assets (NCA) business segment Deutsche Schiffsbank. The entire portfolio will be transferred to the buyer without any exposure left with Commerzbank. The volume of the non-performing loans has thus been lowered by approximately EUR 280 million or around 6% compared to the end of September 2013.
Following the sale of the commercial real estate financing business in Great Britain in July 2013, Commerzbank is now also selling a larger partial portfolio in the Ship Finance segment. “We are pleased that we have been able to realise this transaction in what continues to be a difficult market environment on the international ship markets. The positive capital effect resulting from the transaction is testimony to the appropriate valuation of the ship loans portfolio. We will continue with our consistent strategy of value-preserving reduction,” said Stefan Otto, Divisional Board Member NCA Deutsche Schiffsbank.
In sum, the sale does not significantly impact Commerzbank’s earnings in the fourth quarter 2013. The reduction of EUR 165 million in the risk-weighted assets (RWA) in the course of the transaction results in an overall positive net capital relief effect of EUR 8 million.
With this transaction Commerzbank is pushing ahead with the portfolio reduction in the NCA segment. As of the end of September 2013 the reduction target set for 2013 was already overachieved.
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About Commerzbank
Commerzbank is a leading bank in Germany and Poland. It is also present worldwide in all markets for its customers as a partner to the business world. With the business areas Private Customers, Mittelstandsbank, Corporates & Markets and Central & Eastern Europe, it offers its private and corporate customers as well as institutional investors the banking and capital market services they need. With some 1,200 branches Commerzbank has one of the densest branch networks among German private banks. In total, Commerzbank boasts nearly 15 million private customers, as well as 1 million business and corporate customers. In 2012, it generated revenues of just under EUR 10 billion with approximately 56,000 employees on average.
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Disclaimer
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts. In this release, these statements concern the expected future business of Commerzbank, efficiency gains and expected synergies, expected growth prospects and other opportunities for an increase in value of Commerzbank as well as expected future financial results, restructuring costs and other financial developments and information. These forward-looking statements are based on the management’s current expectations, estimates and projections. They are subject to a number of assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from any future results and developments expressed or implied by such forward-looking statements. Such factors include the conditions in the financial markets in Germany, in Poland, elsewhere in Europe and other regions from which Commerzbank derives a substantial portion of its revenues and in which Commerzbank holds a substantial portion of its assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of its strategic initiatives to improve its business model, particularly to reduce its public finance portfolio in Private Customers, the reliability of its risk management policies, procedures and methods, risks arising as a result of regulatory change and other risks. Forward-looking statements therefore speak only as of the date they are made. Commerzbank has no obligation to periodically update or release any revisions to the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.
