Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Q1 2011 Earnings Presentation
61 slides from Deutsche Pfandbriefbank's earnings presentation, May 20, 2011
Slide 1: Results Q1 2011: Successful re-start of new business origination at profitable margins
Analyst/Investor Presentation Results Q1 2011: Successful re-start of new business origination at profitable margins Results Q1 2011, May 20, 2011
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
Highlights pbb re-emerged as de-risked, re-positioned and profitable specialist bank pbb pbb continues to be profitable with a pre-tax profit of EUR 52 mio in Q1 2011 Appendix 1 – pbb Balance sheet down to EUR 155 bn (31/12/2010: EUR 187 bn), predominantly as counter-effects resulting from the asset
Slide 4: Agenda
Agenda pbb 1. Financial Results 2. New business and Portfolio Appendix 1 – pbb 3. Summary Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 4
Slide 5: Income statement
Income statement pbb profitable since Q3 2010 – decline in pre-tax profit q-o-q attributable to reduction in one-off effects pbb Income statement (IFRS) In Q1 2011, net interest income benefited from EUR 12 mio EUR millions FY 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 gains from buy-back of debt
Slide 6: Balance sheet
Balance sheet Total assets down to EUR 155 bn as counter-effects resulting from the asset transfer to FMS-WM have been reduced by 50% since Oct 1, 2010 pbb Total assets (IFRS) Counter-effects resulting from the asset transfer to FMS-WM EUR billions EUR billions 226 Trading assets 2 -17% 187 16 155 A
Slide 7: Balance sheet
Balance sheet Conservative funding profile with only minor funding gaps pbb Total liabilities and equity (IFRS) Liquidity support by SoFFin no longer required after the asset transfer to FMS-WM EUR billions Favourable maturity profile with unencumbered liquid assets in excess of EUR 10 bn 226 in pla
Slide 8: Capitalisation
Capitalisation pbb sufficiently capitalised with Tier I ratio of 18.7% pbb Pro-forma Risk-Weighted Assets (RWA) Market risk Deutsche Pfandbriefbank AG is according to the ‘Waiver Rule’ regulated in Sec. EUR billions 2a KWG (German Banking Act) not obliged to determine the equity capital ratio Operat
Slide 9: Agenda
Agenda pbb 1. Financial Results 2. New business and Portfolio Appendix 1 – pbb 3. Summary Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 9
Slide 10: Public Sector Finance
Public Sector Finance New business origination successfully re-started at profitable margins since Q4 2010 pbb New business EUR billions 0.6 0.6 0.1 Appendix 1 – pbb New commitments 1) 2) Ø Q1-Q3 2010 Q4 2010 Q1 2011 FY 2010 Q1 2011 No. of deals 51 13 Average maturity ~7.4 yrs ~6.7 yrs Average gross
Slide 11: Non-Real Estate portfolio
Non-Real Estate portfolio Exposure mainly consists of cover pool eligible assets in Germany and Europe pbb Exposure by region EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) 28.9 26.2 31/12/2010 / Total: EUR 59.9 bn Appendix 1 – pbb 31/03/2011 / Total: EUR 60.4 bn 6.8 6.6 5.
Slide 12: Real Estate Finance
Real Estate Finance New business origination successfully re-started at profitable margins since Q4 2010 pbb New business EUR billions 1.6 0.9 0.8 0.8 0.3 0.6 Appendix 1 – pbb New commitments 0.7 0.5 Extensions >1 year 0.2 Ø Q1-Q3 2010 Q4 2010 Q1 2011 FY 2010 Q1 2011 No. of deals 65 22 Average matur
Slide 13: Real Estate portfolio
Real Estate portfolio Exposure mainly consists of cover pool eligible assets in Germany and Europe pbb Exposure by region EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) 14.0 13.8 31/12/2010 / Total: EUR 26.4 bn 31/03/2011 / Total: EUR 25.0 bn Appendix 1 – pbb 2.6 2.6 2.3 2.
Slide 14: Exposure in selected countries
Exposure in selected countries pbb PSF: Sovereign exposure in selected countries Public Sector Finance (PSF) EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) Only limited Sovereign exposure in selected countries – 5% of total Non-Real Estate exposure 31/12/2010 XX Avg maturit
Slide 15: Total problem loans
Total problem loans pbb Total problem loans Non-REF Total problem loans remain unchanged – EUR 1.2 bn remaining restructuring loans EUR billions (EaD) consist of 93 individual cases (31/12/2010: 92), which are adequately covered by REF loan-loss provisions -86% – Non-REF: EUR 0.1 bn – coverage ratio
Slide 16: Agenda
Agenda pbb 1. Financial Results 2. New business and Portfolio Appendix 1 – pbb 3. Summary Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 16
Slide 17: Summary
Summary pbb pbb profitable since Q3 2010 Appendix 1 – pbb pbb with comfortable risk profile and sufficient capitalisation Successful re-start of new business origination at profitable margins Appendix 2 – DEPFA Comfortable liquidity position to support gradual re-entrance into the Pfandbrief market
Slide 18: Contact details
Contact details pbb Communications Walter Allwicher +49 (0)89 2880 28787 walter.allwicher@pfandbriefbank.com Appendix 1 – pbb Investor Relations Frank Ertz +49 (0)89 2880 28776 frank.ertz@pfandbriefbank.com Michael Heuber +49 (0)89 2880 28778 michael.heuber@pfandbriefbank.com Appendix 2 – DEPFA www.
Slide 19: Appendix 1 – pbb
Appendix 1 – pbb Results Q1 2011 Results Q1 2011, May 20, 2011
Slide 20: Agenda
pbb Deutsche Pfandbriefbank (sub-group) Agenda pbb Financial Results Non-Real Estate Portfolio Appendix 1 – pbb Real Estate Portfolio Public Sector Cover Pool Mortgage Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 20
Slide 21: Balance sheet (IFRS)
pbb Deutsche Pfandbriefbank (sub-group) Balance sheet (IFRS) pbb Change Change Assets Equity and liabilities 31.03.20111 31.12.20101 31.03.2011 31.12.2010 EUR millions EUR millions EUR mio % EUR mio % Cash reserve 242 224 18 8.0 Liabilities to other banks 40,776 62,587 -21,811 -34.8 Trading assets 1
Slide 22: Agenda
pbb Deutsche Pfandbriefbank (sub-group) Agenda pbb Financial Results Non-Real Estate Portfolio Appendix 1 – pbb Real Estate Portfolio Public Sector Cover Pool Mortgage Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 22
Slide 23: Non-Real Estate portfolio
pbb Deutsche Pfandbriefbank (sub-group) Non-Real Estate portfolio pbb Non-Real Estate exposure by counterparty type EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) 16.9 16.2 31/12/2010 / Total: EUR 59.9 bn 14.7 31/03/2011 / Total: EUR 60.4 bn 12.6 13.2 12.3 Appendix 1 – pbb
Slide 24: Non-Real Estate portfolio by PD class
pbb Deutsche Pfandbriefbank (sub-group) Non-Real Estate portfolio pbb Non-Real Estate exposure by PD class PD class S&P rating scale EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) 1-7 AAA to A- 58.1 58.0 8-10 BBB+ to BBB- 11-13 BB+ to BB- 31/12/2010 / Total: EUR 59.9 bn 14-
Slide 25: Agenda
pbb Deutsche Pfandbriefbank (sub-group) Agenda pbb Financial Results Non-Real Estate Portfolio Appendix 1 – pbb Real Estate Portfolio Public Sector Cover Pool Mortgage Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 25
Slide 26: Real Estate portfolio by loan type
pbb Deutsche Pfandbriefbank (sub-group) Real Estate portfolio pbb Real Estate exposure by loan type EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) 25.0 23.7 31/12/2010 / Total: EUR 26.4 bn 31/03/2011 / Total: EUR 25.0 bn Appendix 1 – pbb 0.8 0.8 0.6 0.4 0.1 0.1 Appendix 2 –
Slide 27: Real Estate portfolio by property type
pbb Deutsche Pfandbriefbank (sub-group) Real Estate portfolio pbb Real Estate exposure by property type EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) 10.7 31/12/2010 / Total: EUR 26.4 bn 9.21 31/03/2011 / Total: EUR 25.0 bn Appendix 1 – pbb 6.7 6.5 5.9 5.6 2.41 1.8 1.3 1.0
Slide 28: Real Estate portfolio by EL classes
pbb Deutsche Pfandbriefbank (sub-group) Real Estate portfolio pbb Real Estate exposure by EL classes EL class S&P rating scale EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) 1-5 AAA to A- 6-8 BBB+ to BBB- 5.2 5.0 4.8 9-11 BB+ to BB- 31/12/2010 / Total: EUR 26.4 bn 12-15 B+
Slide 29: Agenda
pbb Deutsche Pfandbriefbank (sub-group) Agenda pbb Financial Results Non-Real Estate Portfolio Appendix 1 – pbb Real Estate Portfolio Public Sector Cover Pool Mortgage Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 29
Slide 30: Public Sector cover pool
pbb Deutsche Pfandbriefbank Public Sector cover pool pbb Cover funds by region Public Sector cover pool (Nominal) 31/12/2010 31/03/2011 EUR billions (Nominal) Pfandbriefe outstanding EUR 39.5 bn EUR 38.0 bn 18.9 18.1 Cover funds EUR 43.8 bn EUR 42.4 bn 31/12/2010 / Total: EUR 41.9 bn 1 Over-collater
Slide 31: Public Sector cover pool by counterparty type
pbb Deutsche Pfandbriefbank Public Sector cover pool pbb Cover funds by counterparty type EUR billions (Nominal) 18.0 17.3 31/12/2010 / Total: EUR 41.9 bn1 31/03/2011 / Total: EUR 40.8 bn1 12.9 Appendix 1 – pbb 12.6 10.0 9.3 1.3 1.3 Regional authorities Central governments Local authorities Other de
Slide 32: Public Sector cover pool maturity profile
pbb Deutsche Pfandbriefbank Public Sector cover pool pbb Maturity profile1 31/12/2010: EUR millions (Nominal) 14,000 Pfandbriefe outstanding / Total: EUR 39.5 bn2 12,000 Cover funds / Total: EUR 43.8 bn Appendix 1 – pbb 10,000 8,000 6,000 4,000 2,000 0 <1y >1-2y >2-3y >3-4y >4-5y >5-10y >10y Appendi
Slide 33: Agenda
pbb Deutsche Pfandbriefbank (sub-group) Agenda pbb Financial Results Non-Real Estate Portfolio Appendix 1 – pbb Real Estate Portfolio Public Sector Cover Pool Mortgage Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 33
Slide 34: Mortgage cover pool
pbb Deutsche Pfandbriefbank Mortgage cover pool pbb Cover funds by region Mortgage cover pool (Nominal) 31/12/2010 31/03/2011 EUR billions (Nominal) Pfandbriefe outstanding EUR 17.4 bn EUR 16.3 bn 11.5 11.2 Cover funds EUR 22.7 bn EUR 21.8 bn 31/12/2010 / Total: EUR 20.8 bn1 Over-collateralisation (
Slide 35: Mortgage cover pool by property type
pbb Deutsche Pfandbriefbank Mortgage cover pool pbb Cover funds by property type EUR billions (Nominal) 8.2 7.9 31/12/2010 / Total: EUR 20.8 bn1 31/03/2011 / Total: EUR 20.0 bn1 Appendix 1 – pbb 5.1 4.8 4.7 4.7 2.8 2.7 Office Residential Retail/Shopping Others2 Appendix 2 – DEPFA 31/12/2010 31/03/20
Slide 36: Mortgage cover pool maturity profile
pbb Deutsche Pfandbriefbank Mortgage cover pool pbb Maturity profile1 31/12/2010: EUR millions (Nominal) 6,000 Pfandbriefe outstanding / Total: EUR 17.4 bn2 5,000 Cover funds / Total: EUR 22.7 bn Appendix 1 – pbb 4,000 3,000 2,000 1,000 0 Appendix 2 – DEPFA <1y >1-2y >2-3y >3-4y >4-5y >5-10y >10y 31
Slide 37: Appendix – DEPFA
Appendix 2 – DEPFA Results Q1 2011 Results Q1 2011, May 20, 2011
Slide 38: Agenda
DEPFA (sub-group) Agenda pbb Financial Results Appendix 1 – pbb Total Portfolio ACS Cover Pool HPBI Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 38
Slide 39: Income statement
DEPFA (sub-group) Income statement pbb Income statement (IFRS) In Q1 2011, net interest income benefited from EUR 118 mio EUR millions FY 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 gains from buy-back of debt instruments for reasons of balance sheet management and on customer request (Q4 2010: EUR
Slide 40: Balance sheet
DEPFA (sub-group) Balance sheet pbb Total assets (IFRS) Total liabilities and equity (IFRS) EUR billions EUR billions 250 250 Trading assets 17 Trading liabilities 15 Appendix 1 – pbb -21% -21% Loans and advances Liabilities to other banks (Public Sector 159 144 161 144 and customers and other)1 25
Slide 41: Balance sheet
DEPFA (sub-group) Balance sheet pbb Change Change Assets Equity and liabilities 31.03.20111 31.12.20101 31.03.2011 31.12.2010 EUR millions EUR millions EUR mio % EUR mio % Cash reserve 550 2,283 -1,733 -75.9 Liabilities to other banks 31,151 39,803 -8,652 -21.7 Trading assets 16,029 24,740 -8,711 -3
Slide 42: Capitalisation (IFSRA)
DEPFA (sub-group) Capitalisation (IFSRA) pbb Risk-weighted Assets (RWA) Market risk RWA reduced further by EUR 0.5 bn (-7%) to EUR 6.7 bn EUR billions Operational risk Tier I capital stable (excluding year-to-date result/adjustments) -85% Counterparty risk Tier I ratio now at 55.0% (31/03/2011) 49.5
Slide 43: Agenda
DEPFA (sub-group) Agenda pbb Financial Results Appendix 1 – pbb Total Portfolio ACS Cover Pool HPBI Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 43
Slide 44: Total portfolio by region
DEPFA (sub-group) Total portfolio pbb Total exposure by region EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) 11.5 11.1 31/12/2010 / Total: EUR 63.1 bn 9.8 9.7 9.1 31/03/2011 / Total: EUR 58.7 bn Appendix 1 – pbb 8.1 4.7 4.0 4.2 4.3 4.2 4.3 4.1 3.8 3.6 4.3 3.0 2.6 1.4 1.3 1
Slide 45: Total portfolio by counterparty type
DEPFA (sub-group) Total portfolio pbb Total exposure by counterparty type EUR billions (EaD, excl. FMS-WM guaranteed expposure/compensation claims) 21.6 20.5 31/12/2010 / Total: EUR 63.1 bn 16.5 31/03/2011 / Total: EUR 58.7 bn Appendix 1 – pbb 15.6 10.9 9.7 7.7 7.3 3.9 3.7 1.8 1.7 0.6 0.3 PSE1 Sover
Slide 46: Total portfolio by PD class
DEPFA (sub-group) Total portfolio pbb Total exposure by PD class PD class S&P rating scale EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) 1-7 AAA to A- 8-10 BBB+ to BBB- 61.0 11-13 BB+ to BB- 56.5 31/12/2010 / Total: EUR 63.1 bn 14-22 B+ to B- 31/03/2011 / Total: EUR 58.7 b
Slide 47: Exposure in selected countries
DEPFA (sub-group) Exposure in selected countries pbb Sovereign exposure in selected countries Only limited Sovereign exposure in selected countries – 4% of total exposure EUR billions (EaD, excl. FMS-WM guaranteed exposure/compensation claims) – No Portugal, no Ireland and no Greece 31/12/2010 XX Av
Slide 48: Total problem loans
DEPFA (sub-group) Total problem loans pbb Total problem loans Workout1 EUR 95 mio total problem loans consist of 3 individual cases (31/12/2010: 5), which EUR billions (EaD) are adequately covered by loan-loss provisions with a coverage ratio of ~53% as of Restructuring2 31/03/2011 (31/12/2010: 50%)
Slide 49: Agenda
DEPFA (sub-group) Agenda pbb Financial Results Appendix 1 – pbb Total Portfolio ACS Cover Pool HPBI Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 49
Slide 50: ACS cover pool
DEPFA ACS Bank ACS cover pool pbb Cover pool by region ACS cover pool (Nominal) 31/12/2010 31/03/2011 EUR billions (Nominal) Public Sector ACS outstanding EUR 34.3 bn EUR 31.1 bn 9.6 9.3 Cover pool EUR 37.7 bn EUR 34.1 bn Over-collateralisation (Nominal/NPV) 9.9% / 13.2% 10.0% / 13.1% 31/12/2010 / T
Slide 51: ACS cover pool by counterparty type
DEPFA ACS Bank ACS cover pool pbb Cover pool by counterparty type EUR billions (Nominal) 25.9 23.2 31/12/2010 / Total: EUR 37.7 bn 31/03/2011 / Total: EUR 34.1 bn Appendix 1 – pbb 6.3 6.0 4.1 3.6 1.4 1.3 PSE1 Local Authorities Sovereign Others Appendix 2 – DEPFA 31/12/2010 31/03/2011 Others Others S
Slide 52: ACS cover pool maturity profile
DEPFA ACS Bank ACS cover pool pbb Maturity profile1 31/12/2010: EUR millions (Nominal) 20,000 ACS bonds outstanding Cover pool 15,000 Appendix 1 – pbb 10,000 5,000 0 <1y >1-5y >5-10y >10y Appendix 2 – DEPFA 31/03/2011: EUR millions (Nominal) ACS bonds outstanding 15,000 Cover pool 10,000 Appendix 3
Slide 53: Agenda
DEPFA (sub-group) Agenda pbb Financial Results Appendix 1 – pbb Total Portfolio ACS Cover Pool HPBI Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q1 2011, May 20, 2011 53
Slide 54: HPBI cover pool
Hypo Pfandbrief Bank International (HPBI) HPBI cover pool pbb Cover pool by region LdG cover pool 31/12/2010 31/03/2011 EUR billions (Nominal) Lettres de Gage outstanding EUR 3,276 mio EUR 3,217 mio 0.74 0.74 Cover pool EUR 3,509 mio EUR 3,539 mio 31/12/2010 / Total: EUR 3,509 mio Over-collateralisa
Slide 55: HPBI cover pool by counterparty type
Hypo Pfandbrief Bank International (HPBI) HPBI cover pool pbb Cover pool by counterparty type EUR billions (Nominal) 1.3 1.3 1.1 31/12/2010 / Total: EUR 3,509 mio 1.0 31/03/2011 / Total: EUR 3.539 mio Appendix 1 – pbb 0.9 0.8 0.2 0.2 0.1 0.1 Bank Agency Region Government Other Appendix 2 – DEPFA 31/
Slide 56: HPBI cover pool maturity profile
Hypo Pfandbrief Bank International (HPBI) HPBI cover pool pbb Maturity profile1 31/12/2010: EUR millions (Nominal) 1,200 Lettres de Gage outstanding 1,000 Cover pool Appendix 1 – pbb 800 600 400 200 0 <1y >1-2y >2-3y >3-4y >4-5y >5-10y >10-20y >20y Appendix 2 – DEPFA 31/03/2011: EUR millions (Nomina
Slide 57: Appendix 3 – HRE Group
Appendix 3 – HRE Group Results Q1 2011 Results Q1 2011, May 20, 2011
Slide 58: Income statement
HRE Group Income statement pbb Income statement (IFRS) FY 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 EUR millions Operating revenues 89 51 -66 -244 348 260 Net interest and similar income 840 291 248 197 104 218 Net commission income -319 -100 -98 -125 4 8 Appendix 1 – pbb thereof: SoFFin guarante
Slide 59: Balance sheet
HRE Group Balance sheet pbb Total assets (IFRS) Total liabilities and equity (IFRS) EUR billions EUR billions 384 384 -19% -19% Trading assets 17 Trading liabilities 16 328 328 39 39 Appendix 1 – pbb 267 Liabilities to other banks 181 267 Loans and advances and customers 245 27 27 (Public Sector, Re
Slide 60: Balance sheet
HRE Group Balance sheet pbb Change Change Assets Equity and liabilities 31.03.20111 31.12.20101 31.03.2011 31.12.2010 EUR millions EUR millions EUR mio % EUR mio % Cash reserve 791 2,507 -1,716 -68.4 Liabilities to other banks 70,945 101,382 -30,437 -30.0 Trading assets 27,028 39,114 -12,086 -30.9 L
Slide 61: Capitalisation
HRE Group Capitalisation pbb Risk-weighted assets (RWA) Market risk RWA reduced further by EUR 2.5 bn (-12%) to EUR 17.8 bn, primarily reflecting EUR billions Operational risk maturities (pre-/ repayments) in the existing loan portfolio exceeding new business volumes and rating upgrades -73% Counter
Deutsche Pfandbriefbank — Q1 2011 Earnings Presentation on 6ix