Commerzbank moves strongly to reduce real estate loans
During H1, Commerzbank has driven down its commercial real estate loans to a large extent. The balance sheet shows a financial volume that has shrunk 31% since the end of the year to €24bn. Compared to Q2 2013, the loan book is now even 49% lighter. This is mainly due to already announced package sales in Spain, Portugal, and Japan, with a nominal value of €5.1bn. In Germany, the commercial real estate portfolio has been reduced from €15bn to €12bn since the end of the year. Risk provision for commercial real estate, one of the group’s problem children in recent years, resulted in a bottom line for H1 that even showed €10mn free. Further reductions of the real estate loan portfolio are to now go even faster than planned: by the end of 2016, only €20bn will remain of the current €24bn in real estate loans and €13bn in ship financing.
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