Hamburg Commercial Bank switches to BdB’s voluntary Deposit Protection Fund

November 2021 – Hamburg Commercial Bank (HCOB) will become a member of the voluntary Deposit Protection Fund of the Association of German Banks (BdB) on 1 January 2022. The BdB Management Board’s decision on admission was announced today. Membership in the Institutional Protection Scheme of the German Savings Banks Finance Group (Sparkassen- Finanzgruppe, SFG) will cease as planned at the end of this year.

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Stefan Ermisch, CEO of Hamburg Commercial Bank, is delighted with the bank's big step: "Hamburg Commercial Bank has met all of the BdB's high requirements for inclusion in the voluntary Deposit Protection Fund, and in some cases even exceeded them. On behalf of myself and my colleagues on the Management Board, I would like to thank all our dedicated employees who have made this success story possible, as well as our owners and the members of the Supervisory Board for their strong support throughout the transformation.” Hamburg Commercial Bank’s achievement here is unprecedented in the German banking industry: switching from the Institutional Protection Scheme of the German Savings Banks Finance Group to the Deposit Protection Fund of the Association of German Banks (BdB). "By doing so, Hamburg Commercial Bank has succeeded in its pioneering work, which is unique in the German banking landscape," says Stefan Ermisch. He expressly thanked the representatives of the Association of German Banks and the German Savings Banks Finance Group for their close and focused cooperation over the past years.

Forecast for the current fiscal year raised again

Stefan Ermisch: "The switch to the BdB's Deposit Protection Fund also marks the end of HCOB's three-year, far-reaching transformation into a solidly positioned, private commercial bank. Today, we are active in the German banking market as a well-capitalized and sustainably profitable specialty financier. The Bank’s operating margins continue on an encouraging trajectory. HCOB has again raised its forecast for the 2021 financial year and now anticipates earnings after taxes of well over EUR 300 million, which is substantially higher than the previously communicated target.

The transition of HCOB's membership from the Institutional Protection Scheme of the SFG to the BdB's voluntary Deposit Protection Fund was initiated at the end of 2018, in the course of the sale of the former Landesbank to a group of private investors, with a target date of 1 January 2022. Hamburg Commercial Bank will also switch to the statutory Compensation Scheme of German Private Banks (Entschädigungseinrichtung deutscher Banken GmbH, EdB) at the beginning of 2022. The additional voluntary membership in the Deposit Protection Fund of the BdB offers a higher level of protection than the statutory compensation scheme.