Deutsche Bank plans to shrink metals, mining and steel exposure

Deutsche Bank - Foyer Bridge

Deutsche Bank said it plans to shrink its $11.1bn of exposure to metals, mining and steel as it seeks to cut risky holdings in those industries.

Bloomberg News reports that just 35% of the portfolio is classified as investment grade, Deutsche Bank said in a statement from Frankfurt on Friday. Gross loans account for $5.57bn of the total, while irrevocable lending commitments make up $3.3bn, it said.

“This portfolio is of lower quality compared to our overall corporate credit portfolio,” Deutsche Bank said. “Our strategy is to reduce this credit portfolio due to elevated risks of this industry.”

Banks around the globe are grappling with the fallout of declining commodities prices as cooling emerging-market growth undermines demand from steel to energy. Deutsche Bank’s mounting provisions for faulty loans risk eroding earnings already hurt by legal charges and restructuring costs tied to job losses.

To access the complete Bloomberg News article hit the link below:

Deutsche Bank to Cut $11.1 Billion Metals, Mining Exposure

Pound Traders Await Carney, Osborne After Best Rally Since June

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts