A Clear Picture.

Effective 1 November 2016, the former Restruc­turing Unit (RU) was integrated into the Risk department that you manage. Why?

Ulrik Lackschewitz:  The RU was virtually a bank within the Bank, with its own processes, own procedures. There may have been reasons for this structure at the time this unit was set up. But over the long term and in the current situation it was not suitable because it provided no integrated view of the risks. This is something we changed. Integration of what is now the Non-Core Bank means that there are now uniform processes and lending standards; everything is now connected.


What has changed as a result of the integration?

Ulrik Lackschewitz:  Previously, the RU, which by the way did good work, handled everything: analysis, advisory and processing. Now the tasks have been separated: analysis is handled by Credit Risk Management under Jan Lührs-Behncke. The Special Loan Management unit of Jan Erik Groß is responsible for assisting exposures. We no longer have a situation where some colleagues perform analysis and advisory at the same time. This clear separation was also important from MaRisk aspects. All told, this was a major restructuring and one we completed well internally – among other things thanks to the flexibility and strong commitment of our colleagues.


How are we dealing with the loans, most of which are non-performing, that are bundled together in the Non-Core Bank?

Ulrik Lackschewitz:  We have made major progress when it comes to winding down non-performing loans. We achieved this thanks to our professional management of these portfolios. In some cases, we restructured exposures while in others, we sold off portfolios. All in all, we wound down around ten billion euros (EAD) in this way. We transferred five billion euros to the AöR of the federal states and reduced a further sum of around five billion euros in our day-to-day business. This wind-down process continues; it also includes the sale of our market portfolio.


What does the pooling of non-performing loans in the Non-Core Bank mean for relationships with our clients?

Ulrik Lackschewitz:  We are consistently speaking with one voice. All this leads to more exacting access to our clients. I expect this approach to yield major benefits.