Press release first half of 2018

EAA again with positive figures

•  Good progress in portfolio reduction

•  Stable risk buffer for remaining wind-up Tasks

 

Düsseldorf, 30 August 2018. In the first half of 2018, the EAA continued successfully to reduce its portfolio. It reduced the loans and securities of the former WestLB transferred for wind-up by around 12% compared to the end of last year. As of 30 June, the banking book portfolio amounted to around EUR 20 billion; this means that in total around 87% of the volume of positions transferred to the EAA has been wound up. The derivatives in the trading portfolio fell by more than 6% in notional terms compared to the end of last year; since being transferred the trading portfolio has been reduced by around 82% in total.

Net profit for the first half of the year remained positive at EUR 1.6 million after taxes. This was primarily generated by the write-back of provisions, net wind-up income and renewed cost reductions. Compared to the same period last year, general administrative expenses fell by around EUR 9 million (-10%). At the same time the EAA increased its risk provisioning in net terms by around EUR 44 million.

“Despite the advanced stage of portfolio reduction, the EAA continues to have a stable risk buffer,” said Matthias Wargers, Spokesman of the EAA Managing Board. To cover potential losses from the winding up of the remaining portfolio, it currently still has access to around EUR 2 billion. As of the end of the first half
of 2018 risk provisioning totalled around EUR 800 million and equity stood at around EUR 700 million. In addition, it has an equity capital drawing limit of EUR 480 million. The EAA’s risk buffer has improved continuously relative to
the portfolio.