Deutsche Bank reaffirmed its Buy recommendation on Bank of Queensland last week, after BOQ announced the sale of a portfolio of non-performing loans.In February, BOQ had announced plans to sell A$230 million of commercial property loans. At the end of June it said the sale would not go ahead, but last week it sold $156 million of loans to Goldman Sachs.The four loans in the portfolio included BOQ's three largest impaired assets, secured by shopping centres in Queensland and Victoria.Deutsche said the sale was a positive development for BOQ because it reduced the bank's exposure to commercial property and freed up funding.Deutsche estimated that the price Goldman Sachs paid for the loans was around 40 cents in the dollar, which it said was within the range of values achieved by other recent sale processes involving similar impaired portfolios.Deutsche said: "The sale of impaired loans delivers BOQ a 37 per cent reduction in commercial impaired loans and a 27 per cent reduction in total group impaired loans. "This reduces the downside risk of potential further slippage in these commercial property values."Deutsche said BOQ was trading at a 25 per cent discount to the major banks, on the basis of the estimated price earnings ratio for its 2013 earnings. Deutsche said: "We think the risks are already factored into current pricing and BOQ remains our key regional bank pick on a 12-month view."