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Commerzbank considers legal action over Austria's Heta

Published 18/03/2015, 09:46
© Reuters. A man walks past a branch of Commerzbank ahead of the bank's annual news conference in Frankfurt
CBKG
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FRANKFURT (Reuters) - Commerzbank (DE:CBKG) is evaluating its commercial and legal options in response to possible write-downs on securities of Austrian lender Hypo Alpe Adria's [HAABIA.UL] "bad bank" Heta, it said in its annual report published on Wednesday.

Germany's second biggest lender has a Heta exposure of 400 million euros (289 million pounds). The securities are currently trading at about half of face value, it said.

Earlier this week, small German property bank Duesseldorfer Hypothekenbank AG [DUOG.UL] had to be rescued due to its Heta exposure and several other German banks face material losses from a suspension of Heta's debt imposed by Austrian regulator FMA.

Separately, Commerzbank said in its annual report that the total pay of Chief Executive Martin Blessing roughly doubled to 2.7 million euros in 2014, while the pay of the entire executive board increased by 12 percent to 13.3 million euros.

© Reuters. A man walks past a branch of Commerzbank ahead of the bank's annual news conference in Frankfurt

Blessing had waived his bonus for several years, arguing that the bank had not earned enough to justify it, but for 2014 he took 1.3 million euros in variable pay.

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