German Commercial Bank Cuts $2.7 Billion In Shipping Loans

- Apr 09, 2018-

A few days ago, Commerzbank continued its efforts to dispose of bad-goods loans in 2017.

 

The bank said its ship financing portfolio dropped from 4.8 billion euros (about 5.9 billion U.S. dollars) last year to 2.6 billion euros (about 3.2 billion U.S. dollars). welding overlay flange

 

In the first nine months of 2017 alone, the bank’s shipping business portfolio decreased by more than 30% to 3.3 billion euros, which is consistent with its plan to get rid of bad shipping loans. In the third quarter results, German Commercial Bank stated that it is expected to reach its year-end target of around 3 billion euros.

 

As mentioned above, the losses of Commerzbank benefit from the accelerated reduction in the financing portfolio of ships. pipe fittings

 

The bank’s operating profit declined slightly, from 1.399 billion euros in 2017 to 1.303 billion euros in 2017.

2017 does not include special items of income. Bank revenue increased from 8.57 billion euros in the same period last year to 8.61 billion euros in 2017.

 

In addition, the loan loss provision for 2017 was 781 million euros, compared with 900 million euros in 2016.

Stephan Engels, chief financial officer of Commerzbank, said: "In 2017, while maintaining our cost stability, we have invested in growth, digitization and supervision." glenflange

 

Engels added: "Revaluation of the Bank's ship financing portfolio under IFRS 9 will reduce the burden on the future and lead to a level 13.3% of the Bank's level 1 common stock (CET1) in early 2018. This will provide us with room for further investment growth and digitalization of the Bank."