Fiscal Year 2012
Portfolio reduced by almost EUR 70 billion
- Takeover of further exposures from former WestLB completed
- EAA in the black in FY 2012
- New wind-down plan finalised: no extension of planned wind-down period in spite of portfolio increase
- Wind-down of the increased total portfolio to end with a “blackzero”
- EAA Board wants to cut current portfolio at least by half by 2016
Düsseldorf, April 22, 2013. Erste Abwicklungsanstalt (EAA) continued to wind-down its portfolios swiftly in the first quarter of 2013. On Monday the public-law institution announced that the volume of loans, securities as well as structured financial products taken over from the former WestLB was reduced by another EUR 7 billion between January and March.
For the first time, Managing Board members Markus Bolder and Matthias Wargers presented consolidated figures for the total EAA portfolio, which had been taken over in two tranches in 2009/10 and in 2012. Since its inception, EAA has thus taken over portfolios totalling approx. EUR 200 billion for the purpose of liquidation and wound down loan and securities exposures totalling approx. EUR 68 billion (based on uniform exchange rates as of December 31, 2011). In addition, the derivatives positions in the trading portfolio taken over in mid 2012 have been reduced, with the nominal amount cut by a good 23 percent from EUR 1,064 billion to EUR 813 billion by the end of the first quarter. The corresponding market value dropped from EUR 52 billion below the EUR 50 billion mark.
In the financial year 2012 alone, the loan and securities portfolios were reduced by approx. EUR 32 billion. This is the result of a 30 percent reduction in the newly transferred loan and securities positions. Positions transferred in the first fill transaction were down by another 18 percent on the previous year. During the total period from 2010 through 2012, the so-called “first-fill portfolio” has almost been halved. At 46 percent, the reduction during this period is much higher than had been expected at the time EAA was incorporated. The nominal volume of the derivatives in the trading portfolio was reduced by 17 percent by the end of 2012.