Fiscal year 2022

Good winding-up progress has been made

Fiscal year 2022 went well for the EAA in operational terms. As in previous years, the winding-up activities were focused on measures for reducing the portfolio ahead of schedule and an active participation management. The portfolio of loans and securities was reduced by EUR 2.7 billion to EUR 7.9 billion as of 31 December 2022 and the notional volume in the trading portfolio declined by EUR 8.9 billion to EUR 56.6 billion.

In contrast to the previous years, which was defined by a positive one-off effect, the EAA reported a negative net result for the year of EUR -1.6 million. This reflects the fact that the EAA’s earnings are bound to decline at the well-advanced stage of the portfolio wind-up and the administrative expenses can no longer be offset.

The EAA therefore continues to optimise and variabilise administrative expenses as part of its efficient further development. This also means that the EAA will rely on a flexible servicer landscape in the medium term. Significant advances have been made in implementing the new servicer structure and it should be concluded by the end of the second quarter of 2023. The EAA will then focus on its key functions monitoring, managing and decision-making.

The EAA can continue to draw on a solid risk buffer to wind up the remaining portfolio. Its equity as of 31 December 2022 amounted to over EUR 653.7 million. The buffer of equity, equity capital drawing limit and risk provisions in relation to the remaining portfolio has increased further by 3.8 percentage points to 17.7% compared to year-end 2022. This underlines the fact that the rapid pace of reduction did not impair the substance of the portfolio.

During the reporting period, the judgement by the Regional Court of Frankfurt am Main of 21 December 2022 was delivered , in which it allowed the EAA’s appeal and dismissed Portigon’s claim requesting release from tax liabilities in its entirety. Furthermore, it did not admit an appeal to the Federal Court of Justice, which Portigon responded to with a complaint against non-admission. Given that the EAA believes it also has a very good chance of success in additional proceedings, it continues to see no need to create provisions for the event of ultimate defeat in this legal dispute.