Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Q3 2013 Earnings Presentation
35 slides from Deutsche Pfandbriefbank's earnings presentation, Nov 12, 2013
Slide 1: Results Q3 2013 (unaudited)
Results Q3 2013 (unaudited): Well ahead of initial full-year target with pre-tax profit of EUR 122 mn already after nine months Alexander von Uslar, CFO – 12 November 2013
Slide 2: Disclaimer
Disclaimer This presentation is not an offer or invitation to subscribe for or purchase any securities. No warranty is given as to the accuracy or completeness of the information in this presentation. You must make your own independent investigation and appraisal of the business and financial condit
Slide 3: Highlights Q3 2013
Highlights Q3 2013 Financials New business Pre-tax profit of EUR 62 mn marks best quarter within last two years (Q2/13: EUR 31 mn; Q3/12: EUR 49 mn) Funding After nine months, pre-tax profit of EUR 122 mn already at full-year level 2012 (FY/12: EUR 124 mn; 9M/12: EUR 100 mn) and well ahead of initia
Slide 4: Income Statement: Q3/2013 pre-tax profit best quarter in two years
Income Statement Financials Q3/2013: Pre-tax profit of EUR 62 mn marks best quarter within last two years New Business Pre-tax Profit (IFRS) EUR millions 62 Key drivers Q3/13: 49 31 Operating revenues positively driven by a EUR 30 29 21 24 92 mn gain from sale of a restructured property, Funding whi
Slide 5: Income Statement: 9M/2013 pre-tax profit; full-year target raised
Income Statement Financials 9M/2013: Pre-tax profit of EUR 122 mn already at full-year level 2012 and well ahead of initial full-year target 2013 New Business Pre-tax Profit (IFRS) Full-year pre-tax profit target raised EUR millions from EUR >100 mn to +22% EUR >150 mn >150 124 122 100 >100 +50% Fun
Slide 6: Result from loan business with strong net interest income
Income Statement (IFRS) Financials Result from loan business with strong net interest income New Business Result from Loan Business EUR millions Q1/13 Q2/13 Q3/13 Key drivers Q3/13: Net interest and similar 79 74 79 NII starts to benefit from increasing profitability income in the portfolio Funding
Slide 7: Further result from business activities dominated by FMS-WM servicing
Income Statement (IFRS) Financials Further result from business activities dominated by FMS-WM servicing related effects New Business Further Result from Business Activities EUR millions Q1/13 Q2/13 Q3/13 Key drivers Q3/13: Balance of other 32 24 24 EUR 3 mn lower income from FMS-WM operating servic
Slide 8: Implications from termination of the FMS-WM servicing
Income Statement (IFRS) Financials Implications from termination of the FMS-WM servicing by end of September New Business FMS-WM servicing function handed over to FMS-WM’s servicing entity (FMS Wertmanagement Service GmbH) by end of September, successfully completing a joint two-year migration proje
Slide 9: Result from financial instruments driven by property sale gain
Income Statement (IFRS) Financials Result from financial instruments driven by gain from sale of a restructured property, which more than compensated for negative one-off effects from derivative valuation New Business Result from Financial Instruments EUR millions Q1/13 Q2/13 Q3/13 Key drivers Q3/13
Slide 10: Balance Sheet (IFRS)
Balance Sheet (IFRS) Financials Reduction primarily reflects termination of FMS-WM’s ‘limping’ sub-participation in mortgage cover pool loans in August New Business Total Assets EUR billions 97.1 -11% Key drivers Q3/13: 83.8 Termination of FMS-WM’s ‘limping’ sub-participation 74.9 (‘hinkende Unterbe
Slide 11: Capitalisation: Tier I ratio of 21.6%
Capitalisation Financials Strong capitalisation with further increased Tier I ratio (pro-forma) of 21.6%, not yet including year-to-date result New Business RWA/Tier I ratio The regulatory capital ratios stated are calculated on an EUR billions (SolvV, German GAAP/HGB) unaudited pro-forma basis. Acc
Slide 12: New Business: total volume at EUR 5.5 bn after nine months
New Business Financials After nine months, total new business volume at EUR 5.5 bn and thus already at full-year level 2012 – strong new business expected for Q4 New Business Total New Business PIF REF EUR billions (Commitments, incl. extensions >1 yr) +50% REF FY/12 9M/13 2.1 Total volume € 4.9 bn
Slide 13: Real Estate Finance: new business focus on Germany
New Business Financials Real Estate Finance (REF): New business focus on Germany and other selective European countries New Business New Business: Regions Total Portfolio: Regions 9M/13: EUR 4,570 mn (Commitments, incl. extensions >1 yr) EUR billions (EaD)2 12/12 09/13 Germany 2,402 (53%) Germany 12
Slide 14: Public Investment Finance: new business focus
New Business Financials Public Investment Finance (PIF): New business with focus on Germany, France and Nordic countries New Business New Business: Regions New Business: Counterparty Types 9M/13: EUR 949 mn (Commitments, incl. extensions >1 yr) 9M/13: EUR 949 mn (Commitments, incl. extensions >1 yr)
Slide 15: Funding: EUR 7.0 bn new long-term funding
Funding Financials EUR 7.0 bn new long-term funding after nine months provides comfortable basis for expected strong new business for Q4 New Business New Long-term Funding1 EUR billions 7 9M/12 +23% 9M/13 6 X.X Avg. maturity (yrs) 7.0 5 Funding 5.7 4 Unsecured 3.8 4.2 3 2.8 2 1.8 Pfandbriefe 1 Cover
Slide 16: Cover Pools: over-collateralisation remains comfortable
Cover Pools Financials Over-collateralisation remains comfortable in both cover pools following the termination FMS-WM’s ‘limping’ sub-participation in August1 New Business Mortgage Cover Pool: Total Cover Funds Public Sector Cover Pool: Total Cover Funds EUR billions (nominal) EUR billions (nominal
Slide 17: Portfolio: slight reduction due to maturities
Portfolio Financials Only slight reduction due to maturities – strategic REF-portfolio even a little up in Q3 New Business Total Portfolio Total Problem Loans EUR billions (EaD)1 EUR millions (EaD) -11% 31% 31% 31% -1% 75.3 67.2 66.8 1,096 12.5 0.3 0.2 6.7 0.2 6.7 937 Funding 17 898 9 9 38.9 37.3 36
Slide 18: Summary & Outlook
Summary & Outlook Financials New Business Pre-tax profit after nine months already at full-year level 2012 and well ahead of initial full- year target 2013 full-year target raised to EUR >150 mn – Q3 positively driven by (net) one-off effects – Strong net interest income in Q3 Funding Earnings – Add
Slide 19: Appendix
Appendix
Slide 20: Income Statement (IFRS)
Financials Financials Income Statement New Business Income Statement (IFRS) EUR millions FY 2010 FY 2011 Q1 2012 Q2 2012 Q3 2012 9M 2012 Q4 2012 FY 2012 Q1 2013 Q2 2013 Q3 2013 9M 2013 Operating revenues 652 526 103 120 130 353 114 467 101 113 155 369 Net interest and similar 600 371 76 74 72 222 74
Slide 21: Basel III Capital and Liquidity Ratios simulation
Financials Financials Basel III Capital and Liquidity Ratios – Simulation as of 31/12/2012 (fully phased-in) New Business 31/12/2012: Basel II (actual)1 31/12/2012: Basel III (simulation – fully phased-in)1,3 EUR billions (SolvV, German GAAP/HGB) EUR billions (IFRS) RWA: € 15.3 bn RWA: € 17 bn 18.9%
Slide 22: REF: New business by regions and property types
New Business Financials Real Estate Finance (REF): New business well diversified by regions and property types New Business REF: New Business by Regions and Property Types 9M 2013: EUR millions (Commitments, incl. extensions >1 yr) 2,402 Funding 695 554 529 339 Cover Pools 23 27 Germany CEE France U
Slide 23: PIF: New business by regions and counterparty types
New Business Financials Public Investment Finance (PIF): New business with focus on Germany, France and Nordic countries New Business PIF: New Business by Regions and Counterparty Types 9M 2013: EUR millions (Commitments, incl. extensions >1 yr) 466 359 Funding 125 Cover Pools France Germany Finland
Slide 24: Public Benchmark Issuances 2012-2013
Funding Financials Public Benchmark Issuances 2012-2013 New Business Type WKN Launch Date Maturity Date Size Spread1 Coupon Issue/Reoffer Price Mortgage Pfandbrief A1K0RS 10.01.2012 18.01.2016 EUR 500 mn +75bp 2.250% 99.970% Mortgage Pfandbrief (1. Tap)2 A1EWJU 22.02.2012 06.10.2016 EUR 100 mn +57bp
Slide 25: Termination of FMS-WM's limping sub-participation
Cover Pools Financials Termination of FMS-WM’s ‘limping’ sub-participation in August as a further step in the disentanglement from FMS-WM New Business Transfer of assets to FMS-WM as of 1 Oct 2010 Termination of FMS-WM’s ‘limping’ sub-participation Transfer of EUR ~42 bn non-strategic assets and ris
Slide 26: Total Portfolio by Regions
Portfolio Financials Total Portfolio New Business Total Portfolio by Regions EUR billions (EaD)1 36.6 31/12/2012 / Total: EUR 75.3 bn1 29.9 30/09/2013 / Total: EUR 66.7 bn1 Funding 7.6 7.9 6.3 6.1 4.6 4.2 3.9 3.8 3.8 3.8 3.4 3.2 2.2 1.7 1.8 1.8 1.6 1.5 Cover Pools 1.1 0.9 1.1 1.0 0.7 0.4 0.5 0.4 0.1
Slide 27: REF: Portfolio by Regions
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by Regions EUR billions (EaD) 12.1 12.2 31/12/2012 / Total: EUR 23.7 bn 30/09/2013 / Total: EUR 23.2 bn Funding 3.4 3.3 2.2 2.3 2.2 2.1 1.6 1.5 0.6 0.4 Cover Pools 0.5 0.5 0.4 0.4 0.3 0.2 0.2 0.2 0.1 <0.1 <0.1 <0.1 Germany UK
Slide 28: REF: Portfolio by Property Types
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by Property Types1 EUR billions (EaD) 7.9 7.5 31/12/2012 / Total: EUR 23.7 bn 30/09/2013 / Total: EUR 23.2 bn 6.1 6.1 5.0 4.9 Funding 2.8 1.8 1.0 1.1 1.0 1.1 0.3 Cover Pools 0.3 Office Retail/ Residential Warehouse/ Mixed use
Slide 29: REF: Portfolio by Loan Types
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by Loan Types EUR billions (EaD) 22.3 21.3 31/12/2012 / Total: EUR 23.7 bn 30/09/2013 / Total: EUR 23.2 bn Funding Cover Pools 0.6 1.2 0.7 0.4 <0.1 0.2 Investment loans Development loans Customer derivatives Other 31/12/2012
Slide 30: REF: Portfolio by EL Classes
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by EL Classes EUR billions (EaD) 5.5 31/12/2012 / Total: EUR 23.7 bn 4.9 30/09/2013 / Total: EUR 23.2 bn 3.9 EL class S&P rating scale Funding 3.4 3.3 1-5 AAA to A- 3.0 3.1 6-8 BBB+ to BBB- 2.5 9-11 BB+ to BB- 2.2 12-14 B+ to
Slide 31: PSF: Portfolio by Region
Portfolio Financials Public Sector Finance (PSF) New Business PSF: Portfolio by Region EUR billions (EaD)1 13.8 12.7 31/12/2012 / Total: EUR 38.9 bn 30/09/2013 / Total: EUR 36.7 bn Funding 5.9 5.9 5.0 5.4 4.1 3.7 3.1 3.0 1.6 1.5 1.6 1.5 1.4 1.1 Cover Pools 0.5 0.5 0.5 0.2 0.5 0.2 0.4 0.5 0.2 0.2 0.1
Slide 32: PSF: Portfolio by Counterparty Type
Portfolio Financials Public Sector Finance (PSF) New Business PSF: Portfolio by Counterparty Type EUR billions (EaD)1 10.9 10.6 31/12/2012 / Total: EUR 38.9 bn 30/09/2013 / Total: EUR 36.7 bn 8.4 8.2 8.3 8.2 7.8 6.8 Funding 3.1 3.2 Cover Pools Local Authorities Sovereign Public Sector Entities2 Fina
Slide 33: PSF: Portfolio by PD Class
Portfolio Financials Public Sector Finance (PSF) New Business PSF: Portfolio by PD Class EUR billions (EaD)1 28.0 26.2 31/12/2012 / Total: EUR 38.9 bn 30/09/2013 / Total: EUR 36.7 bn PD class S&P rating scale Funding 1-7 AAA to A- 8-10 BBB+ to BBB- 11-13 BB+ to BB- 14-22 B+ to B- 23-27 CCC+ to CCC-
Slide 34: Total problem loans
Portfolio Financials Total problem loans New Business Total Problem Loans EUR billions (EaD) 88 86 EUR 1.1 bn EUR 0.9 bn EUR 0.9 bn 84 100% 18% 21% 22% Italy Japan 1,096 Hungary Funding 17 937 898 33% 41% 38% 9 9 Austria Benelux 1,079 928 Spain 889 49% 38% 40% UK Cover Pools Germany 12/2012 06/2013
Slide 35: Contact Details
Contact Details Communications Walter Allwicher +49 (0)89 2880 28787 walter.allwicher@pfandbriefbank.com Investor Relations Frank Ertz +49 (0)89 2880 28776 frank.ertz@pfandbriefbank.com Michael Heuber +49 (0)89 2880 28778 michael.heuber@pfandbriefbank.com Website www.pfandbriefbank.com/investor-rela
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