The shipping slump has led Germany's Commerzbank to record loan loss provisions totalling EUR 900m ($962m) for 2016.
This was a "timely response" to the deterioration in maritime markets and compares to EUR 696m in 2015, it said.
The bank described its non-performing loan ratio as still very low at 1.6%, however.
Ship finance provisions were said to have been "high" during the year.
And loan losses in the fourth quarter rose sharply to EUR 290m from EUR 112m in 2015.
The bank ran down its portfolios in the Asset & Capital Recovery (ACR) segment once more.
Exposure at default fell by EUR 2.3bn, taking the figure to EUR 16.2bn at year-end.
ACR's operating result was worse than the previous year at a loss of EUR 514m, against EUR 466m, due to ship finance provisions.
Overall annual net profit fell to EUR 279m from EUR 1.08bn the year before.
Revenues before loan loss provisions were EUR 9.4bn, down from EUR 9.8bn.
Looking ahead, the lender expects loan loss provisions in ship finance to be between EUR 450m and EUR 600m this year.
