Germany’s Commerzbank exits ship financing

   Germany’s Commerzbank said Tuesday that it’s getting out of ship and real estate financing as part of a plan to focus on its core business.
   “In view of the continuing uncertain situation on the financial markets, the heightening of the sovereign debt crisis and the increasing regulatory burdens, Commerzbank intends to accelerate the path it has already taken, with its focus on customer-centric and profitable core business, the minimisation of risks and a reduction in complexity. The Board of Managing Directors has today, therefore, decided to wind up the business areas Commercial Real Estate and Ship Finance in the course of time,” the bank said.
   Through its Deutsche Schiffsbank unit, Commerzbank said it advised and supported shipping customers all over the world for both newbuildings and for the purchase of second-hand tonnage.
   The company’s shipping lending business had roots in Deutsche Schiffsbeleihungs-Bank AG, Hamburg and Deutsche Schiffspfandbriefbank, Berlin which relocated to Bremen after the Second World War and Deutsche Schiffskreditbank in Duisburg, all established in 1918.
   In its annual report for 2011, the bank said its “exposure at default (performing and non-performing book) for ship finance fell in 2011 from 22.7 billion euro ($28.3 billion) to 21.2 billion euro. The exposure is divided into three largely unchanged standard types of ship, namely containers (7 billion euro), tankers (5 billion euro) and bulkers (4 billion euro). The remaining portion is accounted for by various special tonnages which are well diversified across the various ship segments.” – Chris Dupin