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Erste Abwicklungsanstalt: EAA successfully continues with portfolio reduction

DGAP-News: Erste Abwicklungsanstalt / Key word(s): Annual Results/Annual Report Erste Abwicklungsanstalt: EAA successfully continues with portfolio reduction 19.04.2021 / 11:38 The issuer is solely responsible for the content of this announcement. Press release

Fiscal year 2020

EAA successfully continues with portfolio reduction

Result for the year slightly negative // Loans and securities reduced by about 15%, derivatives by about 31% // Corona pandemic has little impact on winding up // Reserves strengthened in relation to remaining portfolio // Milestone reached in the accelerated wind-up of EAA Covered Bond Bank Plc

Düsseldorf, 19 April 2021. The EAA closed the 2020 financial year with a lower net loss of EUR 1.9 million after tax compared to EUR 2.7 million in the previous year. A slightly negative result in the current winding-up phase has been taken into account in the original wind-up planning and is no indication of changed conditions or risks. "We successfully continued to wind up the financial products acquired from the former WestLB in the 2020 fiscal year, which was dominated by the Corona pandemic", says Horst Küpker, member of the Managing Board of the EAA. "Of the loans and securities in the banking book acquired in 2009/2010 and 2012, some EUR 12.7 billion were still on the EAA's books as of 31 December 2020", Küpker continues. This is roughly 15% less than in the previous year. Overall, the notional volume of the transferred financial products has so far been reduced by 90%. The notional volume of derivatives in the trading portfolio fell by around 31% in 2020 to EUR 94.6 billion. This means that around 91% has been reduced since the takeover in 2012. The accelerated winding-up of the Irish subsidiary EAA Covered Bond Bank Plc (EAA CBB), for which the European Central Bank approved the return of the full banking licence in March 2021, also contributed to this. EAA CBB was the last operational special bank participation from the portfolio of the former WestLB AG. EAA CBB mainly held bonds issued by public-sector borrowers in Europe.