COMMISSION DECISION
of 20 September 2011
on State aid granted by Germany to HSH Nordbank AG SA.29338 (C 29/09 (ex N 264/09))
(notified under document C(2011) 6483)
(Only the German text is authentic)
(Text with EEA relevance)
(2012/477/EU)
1.
PROCEDURE
2.
DESCRIPTION OF THE BENEFICIARY
Business year |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
Profit and Loss (EUR million)(16) |
111 |
110 |
204 |
239 |
261 |
127 |
400 |
460 |
270 |
–3 195 |
– 838 |
Cumulated Profit and loss (EUR million) |
111 |
221 |
425 |
664 |
925 |
1 052 |
1 452 |
1 912 |
2 182 |
–1 013 |
–1 851 |
Dividend payments to public-sector owners (EUR million) |
|
|
|
|
36 |
44 |
72 |
96 |
105 |
0 |
0 |
Cumulated dividend payments to public-sector owners (EUR million) |
|
|
|
|
36 |
80 |
153 |
248 |
354 |
354 |
354 |
New capital injection by owners (EUR million) according to local GAAP |
|
|
|
|
|
|
[300-600] |
0 |
0 |
[700-1 400] |
3 000 |
Cumulated capital injection by public-sector owners (EUR million) |
|
|
|
|
|
|
[300-600] |
[300-600] |
[300-600] |
[1 000-2 000] |
[4 000-5 000] |
Risk shield — guarantee (EUR billion) |
|
|
|
|
|
|
|
|
|
|
10 |
Guaranteed liabilities (EUR billion), of which |
|
|
162 |
166 |
152 |
144 |
161 |
88 |
78 |
75 |
73 |
Gewährträgerhaftung (EUR billion) |
|
|
162 |
166 |
152 |
144 |
161 |
88 |
78 |
65 |
56 |
SoFFin guarantees (EUR billion) |
|
|
0 |
0 |
0 |
0 |
0 |
0 |
0 |
10 |
17 |
3.
THE AID MEASURES
3.1.
THE RECAPITALISATION
3.2.
THE RISK SHIELD
Category of assets |
Assets on balance sheet (in EUR billion) |
% of the portfolio |
Customer loans |
[115 approx] |
[…] |
Fixed income securities |
[30 approx] |
[…] |
Secured tradable loans(23) |
[15 approx] |
[…] |
Assets-backed securities |
[10 approx] |
[…] |
Guarantees on payments |
[5 approx] |
[…] |
Total |
[172 approx] |
100,0 |
(In EUR million) |
|||
|
Scenario 1 (EUR 0 drawing of guarantee) |
Scenario 2 (EUR 5 billion drawing of guarantee) |
Scenario 3 (EUR 10 billion drawing of guarantee) |
Basic premium (400 bps on outstanding nominal amount of the guarantee) |
[> 1,5] |
[> 2,5] |
[> 4] |
(In EUR million) |
||||||
|
2009 actual |
2010 actual |
2011 |
2012 |
2013 |
2014 |
Scenario 1 (EUR 0 drawing) |
– 300 |
– 405 |
– [300-350] |
– [200-250] |
– [150-200] |
– [100-150] |
Scenario 2 (EUR 5 billion drawing) |
– 300 |
– 405 |
– [300-350] |
– [200-250] |
– [180-230] |
– [150-200] |
Scenario 3 (EUR 10 billion drawing) |
– 300 |
– 405 |
– [300-400] |
– [300-400] |
– [300-400] |
– [300-400] |
3.3.
LIQUIDITY GUARANTEES
4.
THE RESTRUCTURING PLAN
4.1.
INITIAL RESTRUCTURING PLAN AND SUBSEQUENT REVISION OF THE FINANCIAL PROJECTIONS
Segment |
Initial restructuring plan (1 September 2009) |
Modified restructuring plan (11 July 2011) |
Comment on growth assumption in modified restructuring plan |
Shipping |
Growth rate of new business around [250] % from 2010 IST - 2014 (some [40] % CAGR) |
Growth rate of new business [90-130] % from 2010 IST - 2014 ([…] % CAGR) |
The growth rate is based on an annual absolute volume of new business of EUR […] billion on average from 2011 to 2014. It compares to a total market volume of around EUR [25] billion of new business on average over the period |
Corporate |
Growth in loan volume [around 100] % (2010 IST – 2014) |
Growth in loan volume […] % (2010 IST – 2014) |
That growth corresponds to an absolute volume amount of new business of EUR […] billion over four years and compares to total assets in that segment of EUR 25,7 billion as of 31 December 2008 |
4.2.
GENERAL DESCRIPTION OF THE MODIFIED RESTRUCTURING PLAN
|
Average 2005–2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
Total global new business shipping (in EUR billion) |
109,4 |
25,9 |
48,3 |
[10-15] |
[15-25] |
[25-35] |
[40-50] |
New business HSH (in EUR billion) |
6,7 |
0,2 |
1 |
[0,5-1,5] |
[0,5-1,5] |
[1-2] |
[2-3] |
Market share HSH (%) |
6,1 |
0,8 |
2,1 |
About [4] |
About [5] |
About [5] |
About [5] |
4.3.
DESCRIPTION OF THE RESTRUCTURING OF THE INDIVIDUAL BUSINESS UNITS OF HSH
4.4.
DESCRIPTION OF THE FINANCIAL PLANNING IN THE MODIFIED RESTRUCTURING PLAN
|
2008 actual |
2009 actual |
2010 actual |
2011 plan |
2012 plan |
2013 plan |
2014 plan |
Total income (in EUR million) |
157 |
2 876 |
1 603 |
[1 300-1 800] |
[1 300-1 800] |
[1 300-1 800] |
[1 300-1 800] |
Net income before restructuring expenses (in EUR million) |
(2 796) |
(718) |
545 |
[500-1 000] |
[500-1 000] |
[500-1 000] |
[500-1 000] |
Net income before tax (in EUR million) |
(2 968) |
(1 325) |
17 |
[– 200-300] |
[0-500] |
[100-600] |
[200-700] |
Net income (in EUR million) |
(3 195) |
(902) |
48 |
[– 400-100] |
[0-500] |
[0-500] |
[0-500] |
Cost income ratio (CIR) (%) |
573 |
29 |
54 |
[45-55] |
[45-55] |
[45-55] |
[40-50] |
Return on equity after tax (RoE) (%) |
< 0 |
< 0 |
< 0 |
[– 5-+ 5] |
[5-10] |
[5-10] |
[5-10] |
Total assets (in EUR billion) |
208 |
175 |
151 |
[130-150] |
[125-145] |
[120-140] |
[115-135] |
|
2008 actual |
2009 actual |
2010 actual |
2011 plan |
2012 plan |
2013 plan |
2014 plan |
Total income (in EUR million) |
1 582 |
1 756 |
1 103 |
[750-1 250] |
[750-1 250] |
[750-1 250] |
[750-1 250] |
Net income before restructuring (in EUR million) |
418 |
354 |
574 |
[300-600] |
[300-600] |
[300-600] |
[300-600] |
Net income before tax (in EUR million) |
295 |
18 |
318 |
[200-500] |
[200-500] |
[200-500] |
[200-500] |
Cost income ratio (CIR) (%) |
39 |
32 |
52 |
[40-60] |
[40-60] |
[40-60] |
[40-60] |
Segment assets (EUR billion) |
113 |
97 |
88 |
[60-90] |
[60-90] |
[60-90] |
82 |
(in EUR billion) |
|||||
Volumes per funding channel |
2010 actual |
2011 |
2012 |
2013 |
2014 |
Covered bonds |
[…] |
[…] |
[…] |
[…] |
[…] |
State guaranteed long-term bonds |
[…] |
[…] |
[…] |
[…] |
[…] |
Senior unsecured long-term |
[…] |
[…] |
[…] |
[…] |
[…] |
Short-term wholesale funding |
[…] |
[…] |
[…] |
[…] |
[…] |
Wholesale funding other |
[…] |
[…] |
[…] |
[…] |
[…] |
Commercial and retail deposits (until 2010)/Residual deposits (permanent average balances from 2011) |
[…] |
[…] |
[…] |
[…] |
[…] |
Development banks and commercial lending |
[…] |
[…] |
[…] |
[…] |
[…] |
Hybrids (Tier 1 and Tier 2) |
[…] |
[…] |
[…] |
[…] |
[…] |
Total |
[…] |
[…] |
[…] |
[…] |
[…] |
Derivatives |
[…] |
[…] |
[…] |
[…] |
[…] |
Total assets |
[…] |
[…] |
[…] |
[…] |
[…] |
Total assets – (total liabilities + derivatives) to be financed by short-term secured funding, excess deposits and equity |
|
[…] |
[…] |
[…] |
[…] |
(in USD billion) |
|||||
Volumes |
2010 actual |
2011 |
2012 |
2013 |
2014 |
USD denominated funding |
[…] |
[…] |
[…] |
[…] |
[…] |
USD funding through swaps |
[…] |
[…] |
[…] |
[…] |
[…] |
Total assets USD |
[…] |
[…] |
[…] |
[…] |
[…] |
Total assets USD shipping |
[…] |
[…] |
[…] |
[…] |
[…] |
|
2009 actual |
2010 actual |
2011 |
2012 |
2013 |
2014 |
2015 |
Risk-weighted assets after guarantee (EUR billion) |
71 |
41 |
[40-60] |
[40-60] |
[45-65] |
[50-70] |
[50-70] |
Guarantee outstanding (EUR billion) |
10 |
10 |
7,0 |
[< 7,0] |
[< 7,0] |
[< 5,0] |
[< 5,0] |
Capital evolution (EUR billion) |
|
|
|
|
|
|
|
Common equity Tier I capital (EUR billion) |
5,080 |
4,433 |
[4 000-6 000] |
[4 500-6 500] |
[5 000-7 000] |
[5 500-7 500] |
[6 000-8 000] |
Tier I capital (EUR billion) |
7,491 |
6,274 |
[5 000-7 000] |
[5 500-7 500] |
[6 000-8 000] |
[6 500-8 500] |
[7 000-9 000] |
Total capital (EUR billion) |
11,523 |
9,400 |
[8 000-12 000] |
[8 000-12 000] |
[8 000-12 000] |
[8 000-12 000] |
[8 000-12 000] |
Capital ratios |
|
|
|
|
|
|
|
Common equity/RWA (%) |
7,1 |
10,7 |
[> 7,0] |
[> 8,0] |
[> 9,0] |
[> 10,0] |
[> 10,0] |
Tier 1 capital/RWA (%) |
10,5 |
15,2 |
[> 10,0] |
[> 10,0] |
[> 10,0] |
[> 10,0] |
[> 10,0] |
4.5.
COMMITMENTS MADE BY GERMANY
4.6.
MONITORING
5.
GROUNDS FOR INITIATING THE FORMAL INVESTIGATION PROCEDURE IN RESPECT OF THE AID MEASURES FOR HSH
6.
COMMENTS FROM GERMANY
6.1.
COMMENTS ON THE RISK SHIELD
6.2.
COMMENTS ON THE RECAPITALISATION
6.3.
COMMENTS ON THE RISK SHIELD AND THE RECAPITALISATION IN THE LIGHT OF THE UNLIMITED STATE GUARANTEE PROVIDED BY THE PUBLIC-SECTOR OWNERS (GEWÄHRTRÄGERHAFTUNG)
6.4.
COMMENTS ON HSH’S VIABILITY
6.5.
COMMENTS ON OWN CONTRIBUTION AND COMPENSATORY MEASURES
7.
COMMENTS FROM THIRD PARTIES
7.1.
COMMENTS FROM SGVSH AND SVB
7.2.
COMMENTS FROM FLOWERS
8.
COMMENTS FROM GERMANY ON THIRD PARTIES’ COMMENTS
9.
ASSESSMENT
9.1.
EXISTENCE OF STATE AID
9.2.
COMPATIBILITY OF THE AID MEASURES
9.2.1. APPLICATION OF ARTICLE 107(3)(B) TFEU
9.2.2. COMPATIBILITY OF THE RISK SHIELD WITH THE IMPAIRED ASSETS COMMUNICATION
9.2.2.1.
Eligible assets
9.2.2.2.
Management of assets
9.2.2.3.
Valuation of the shielded portfolio
9.2.2.4.
Full ex ante transparency and disclosure
9.2.2.5.
Alignment with public policy objectives
9.2.2.6.
Remuneration and burden sharing
(In EUR million) |
|||
|
Scenario 1 (EUR 0 drawing of guarantee) |
Scenario 2 (EUR 5 billion drawing of guarantee) |
Scenario 3 (EUR 10 billion drawing of guarantee) |
Basic premium (400 bps on outstanding nominal amount of the guarantee) |
[> 1,5] |
[> 2,5] |
[> 4] |
Of which, capital relief remuneration ([about 220] bps on outstanding nominal amount of the guarantee) |
[700-900] |
[1 200-1 600] |
[1 800-2 500] |
Claw-back in basic premium |
[500-800] |
[1 000-1 400] |
[1 500-2 000] |
Further claw-back needed |
[…] |
[…] |
[…] |
(In EUR million) |
|||
|
Scenario 1 (EUR 0 drawing of guarantee) |
Scenario 2 (EUR 5 billion drawing of guarantee) |
Scenario 3 (EUR 10 billion drawing of guarantee) |
Basic premium (400 bps on outstanding nominal amount of the guarantee) |
[> 1,5] |
[> 2,5] |
[> 4] |
Of which capital relief remuneration ([around 220] bps on outstanding nominal amount of the guarantee) |
[700-900] |
[1 200-1 600] |
[1 800-2 500] |
Claw-back in basic premium |
[500-800] |
[1 000-1 400] |
[1 500-2 000] |
Additional premium (385 bps on the ultimately drawn amount of the guarantee) |
0 |
[1 500-2 500] |
[3 500-4 500] |
Lump sum payment shares |
500 |
500 |
500 |
Total claw-back paid |
[1 000-1 300] |
[3 000-4 400] |
[5 500-7 000] |
Further claw-back needed |
[…] |
[…] |
[…] |
9.2.2.7.
Conclusion
9.2.3. COMPATIBILITY OF THE MODIFIED RESTRUCTURING PLAN WITH THE INTERNAL MARKET
9.2.3.1.
The degree of restructuring required
9.2.3.2.
Restoration of long-term viability
9.2.3.3.
Own contribution and burden sharing by minority shareholders
9.2.3.3.1.
Own contribution, burden sharing and aid limited to the minimum
9.2.3.3.2.
Burden sharing by minority shareholders
9.2.3.3.3.
Conclusion on own contribution and burden sharing by minority shareholders
9.2.3.4.
Measures limiting distortion of competition
9.2.3.5.
Conclusion regarding the restructuring
10.
POTENTIAL BENEFIT TO OTHER SHAREHOLDERS
11.
CONCLUSIONS
Article 1
Article 2
Article 3
Article 4
ANNEX I
LIST OF COMMITMENTS REFERRED TO IN ARTICLE 1(2) AND ARTICLE 2
ANNEX II
LIST OF CONDITIONS REFERRED TO IN ARTICLE 2
ANNEX III
TIME OF SALES OF HOLDINGS (DATE OF SIGNING OF SALES CONTRACT) IN ACCORDANCE WITH POINT 7.1 OF ANNEX I
Name |
Date of sale |
[…] |
[…] |
Aegean Baltic Bank SA |
sold |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Albes Verwaltungsgesellschaft mbH (formerly Albes Grundstücksverwaltungsgesellschaft mbH) |
wound up |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
BEG Baugrundentwicklungsgesellschaft mbH i. L. |
liquidated |
BIKO Grundstücks-Verwaltungsgesellschaft mbH & Co. KG i. L. |
liquidated |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
CRE Financial Group LLC |
inactive |
Credaris Portfolio Management GmbH |
inactive |
[…] |
[…] |
DOLANA Grundstücksverwaltungsgesellschaft mbH & Co. Objekt Sehnde KG |
inactive |
[…] |
[…] |
[…] |
[…] |
Embley Investment Funds |
sold |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Freebay Holdings LLC |
inactive |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Gesellschaft bürgerlichen Rechts der Altgesellschafter der Deutschen Leasing AG (GbR) |
inactive |
GLB GmbH & Co. OHG (DekaBank holding) |
inactive |
GLB-Verwaltungs-GmbH |
inactive |
[…] |
[…] |
[…] |
[…] |
GR Holding 2009 A/S (formerly Gudme Raaschou Bank A/S) |
sold |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
HSH N Real II GmbH |
wound up |
[…] |
[…] |
HSH Nordbank Private Banking SA – silent participation |
settled |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
HSH Structured Finance Services GmbH |
Wound up |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Lamatos GmbH |
wound up |
Leashold Verwaltungs-GmbH & Co. KG |
2013 |
[…] |
[…] |
[…] |
[…] |
Mietdienst Gesellschaft für Investitionsgüterleasing mbH & Co. Leasinggesellschaft |
inactive |
Minerva GmbH |
wound up |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Nordic Blue Container Ltd |
inactive |
[…] |
[…] |
NORDIC BLUE CONTAINER VI Ltd |
inactive |
NORDIC BLUE CONTAINER VII Ltd |
inactive |
Norship Italia Srl |
liquidated |
[…] |
[…] |
Nubes GmbH |
inactive |
Pellecea GmbH |
wound up |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Rumina GmbH |
wound up |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
Solent Holding II GmbH |
Sold |
[…] |
[…] |
Spielbank SH GmbH |
Sold |
Spielbank SH GmbH & Co. Casino Flensburg KG |
Sold |
Spielbank SH GmbH & Co. Casino Kiel KG |
Sold |
Spielbank SH GmbH & Co. Casino Lübeck-Travemünde KG |
Sold |
Spielbank SH GmbH & Co. Casino Stadtzentrum Schenefeld KG |
Sold |
Spielbank SH GmbH & Co. Casino Westerland auf Sylt KG |
Sold |
Sun Edison LLC |
Sold |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
TERRANUM Gewerbebau GmbH & Cie |
wound up |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
[…] |
White Sails Limited |
liquidated |
Yara Sourcing Oy |
liquidated |