Portfolio
Good winding-up progress has been made
Looking back on 2022, it was a good fiscal year in operational terms, in which the EAA made further progress in winding up the portfolio.
In contrast to the previous year, which was defined by a positive one-off effect, the EAA reported a negative result after taxes of EUR -1.6 million. This reflects the fact that the EAA’s earnings will inevitably decline at the well-advanced stage of the portfolio wind-up and the administrative expenses can no longer be offset.
The EAA has put in place important conditions in recent months to ensure it is in an efficient and cost-effective position for the remaining tasks. The implementation of the new servicer structure should be completed by the end of the second quarter of 2023. The EAA will then focus on its key functions of monitoring, managing and decision-making.
This provides a solid basis to continue reducing the remaining portfolios.
The EAA continues to fundamentally pursue an opportunistic approach in fiscal year 2023 by conducting regular analyses of market conditions and exit opportunities in order to assess early and profitable wind-up opportunities for the portfolio.
Banking book portfolio
From 1 January to 31 December 2022, the notional volume of the banking book was reduced from EUR 10.6 billion to EUR 7.9 billion. That equates to a decline in notional volume of EUR 2.7 billion (26%). The total banking book portfolio has decreased by EUR 118.6 billion or 94.9% since 1 January 2012. The main drivers in 2022 were the reduction of approx. EUR 1.8 billion in the Phoenix Portfolio. As in previous years, the wind-up activities were focused on measures for reducing the portfolio ahead of schedule and active participation management.
Trading portfolio
The nominal volume of derivative products in the EAA’s trading portfolio was reduced by EUR 8.9 billion in 2022 to EUR 56.6 billion, due to maturities and active measures. In 2022, the EAA’s active measures were once again aimed at reducing the risks and the administrative workload associated with the portfolio.
Additional measures for an advance reduction will be taken over the course of 2023.