Deutsche Bank Plans to Reduce Credit Exposure to Steel, Mining Industries
03/14/2016 - The downturn in the steel and mining industries is prompting Germany’s largest bank to pull back on its lending to those areas.
In its 2015 annual report, Deutsche Bank said it intends to reduce its credit exposure in its metals, mining and steel portfolio because of material oversupply and resulting decline in prices and margins.
As of the end of 2015, the bank said the portfolio accounted for approximately EUR10 billion (US$11.1 billion) in credit exposure.
“This portfolio is of lower quality compared to our overall corporate credit portfolio, and has an investment-grade ratio of just 35 percent,” the bank said in the report, adding that a significant share of the portfolio is in emerging-markets countries.
However, its exposure to metals and mining, along with two other troubled sectors – shipping and oil and gas – are a small part of its overall credit exposure, less than 2 percent, it said.
As of the end of 2015, the bank said the portfolio accounted for approximately EUR10 billion (US$11.1 billion) in credit exposure.
“This portfolio is of lower quality compared to our overall corporate credit portfolio, and has an investment-grade ratio of just 35 percent,” the bank said in the report, adding that a significant share of the portfolio is in emerging-markets countries.
However, its exposure to metals and mining, along with two other troubled sectors – shipping and oil and gas – are a small part of its overall credit exposure, less than 2 percent, it said.
