German banker Stefan Ermisch has resigned as chief executive of Hamburg Commercial Bank (HCOB).
The move marks the end of an era for the former HSH Nordbank, once the world’s largest ship financier.
The 56-year-old Ermisch will remain chairman of the management board and CEO until 30 September.
He will be replaced by the bank’s chief financial officer Ian Banwell, who will take over the role on 1 October.
Ermisch has been part of the bank’s management board since 2012, initially as CFO and from June 2015 as deputy chairman
He took over as chief executive in June 2016.
He remained at the helm after the former state-controlled bank was bought in November 2018 for $1.2bn by a consortium led by Cerberus Capital Management and JC Flowers.
“I have agreed to Ermisch’s request with regret, but of course the Supervisory Board respects his decision,” said Juan Rodriguez Inciarte, Chairman of the Supervisory Board.
Ermisch “has led and significantly shaped the entire restructuring process, the first privatisation of a bank in Germany at the end of 2018, and the seamless transformation that followed,” he added.
“Under his leadership, HCOB has grown into a successful and respected commercial bank in the market.”
Cerberus sale
The surprise resignation will do little to dampen rumours that Cerberus has been looking to sell its stake in the privatised bank.
In March, Handelsblatt reported that investment bank Morgan Stanley had begun to sound out several financial institutions on behalf of the owners to see whether they are interested in taking over HCOB.
The talks were labelled initial exploratory talks and not yet a formal sales process.
While the bank’s shipping portfolio is a fraction of the size it was a decade ago, HCOB remains a significant player in shipping markets.
HCOB’s shipping division benefitted from strong demand for shipping service in the first six months of the year.
Total income of the shipping division rose to €82m ($83m) in the first half of the year, compared with €72m in the same period last year.
Net income after tax rose 25% to €38m for the division, up from €30m in the previous corresponding period.
The increase was due to strong operating performance, positive valuation effects on loans and advances to customers categorised at fair value and lower risk costs.
Gross new business in shipping was €0.6m, boosted by continuing strong demand for shipping service.
Around 90% of the portfolio has a loan-to-value of less than 60%.
The division contributed to HCOB performance of the bank as a group, which had“exceeded expectations”, said Ermisch.
HCOB's net result was €207m for the first half year, up from €194m in the same period last year.
The bank has subsequently raised its guidance for full-year pre-tax profit to more than €300m and a group net result of around €350m.
