Deutsche Pfandbriefbank Ag · XETR:PBB

Deutsche Pfandbriefbank — FY2015 Earnings Presentation

70 slides from Deutsche Pfandbriefbank's earnings presentation, Mar 2, 2016

  1. Slide 1: Analyst Conference Preliminary Results 2015

    Analyst Conference Preliminary Results 2015 2 March 2016 Strong Operating Performance – PBT of EUR 195 mn (+12%) Dividend proposal at 43 Cent per share Preliminary Results 2015 (IFRS, pbb Group, unaudited), 2 March 2016

  2. 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

  3. Slide 3: 2015: A good year for pbb

    2015: A good year for pbb Privatisation done – IPO successfully completed in difficult market environment pbb pbb firmly established as a leading European Real Estate and Public successfully Investment Finance Bank positioned Cost target delivered Strategy after IPO – focus on risk conservative prof

  4. Slide 4: 2016: Outlook on markets and regulatory environment with increasing uncertainties

    2016: Outlook on markets and regulatory environment with increasing uncertainties Macroeconomics in core Europe expected to remain reasonably intact – despite political tensions ECB policy of QE to extend through 2016; low/negative interest rates to stay Markets Demand for commercial real estate to

  5. Slide 5: Agenda

    Agenda 1 Highlights 2015 2 Financials 3 Business units 4 Portfolio 5 Funding 6 Capitalisation 7 Outlook 2016 Appendix Contact details Preliminary Results 2015 (IFRS, pbb Group, unaudited), 2 March 2016 5

  6. Slide 6: Highlights 2015: Pre-tax profit of EUR 195 mn exceeds initial expectation

    Highlights 2015 Pre-tax profit of EUR 195 mn exceeds initial full-year expectation of at least EUR 174 mn by +12% Pre-tax profit at EUR 195 mn (+12% y-o-y) – fourth quarter PBT of EUR 30 mn q-o-q affected by additions to loan-loss provisions, higher general administrative expenses and personnel prov

  7. Slide 7: Highlights 2015: Strong operating performance

    Highlights 2015 Strong operating performance – NII slightly up y-o-y, despite ongoing margin compression and high early extensions/prepayments New business Q4 Net interest income Q4 General and admin. expenses Q4 EUR billions (Commitments, incl. extensions >1 yr) EUR millions (IFRS) EUR millions (IF

  8. Slide 8: Highlights 2015: Positive tax effect from deferred taxes

    Highlights 2015 Positive tax effect from deferred taxes results in tax gain of EUR 35 mn Net income Deferred taxes EUR millions (IFRS) -48 +83 Current taxes -71 230 195 +154 -12 -9 -27 Profit b. t. Current One-off Prior Temporary differences Tax-losses Net income year years caried forward Current ta

  9. Slide 9: Agenda

    Agenda 1 Highlights 2015 2 Financials 3 New business 4 Portfolio 5 Funding 6 Outlook 2016 Appendix Contact details Preliminary Results 2015 (IFRS, pbb Group, unaudited), 2 March 2016 9

  10. Slide 10: Income statement: Net interest and commission income

    Income statement Net interest and commission income up by +4% y-o-y despite margin compression and high early extensions/prepayments of higher margin loans Income from lending business EUR millions Key drivers 2015: Q4/14 Q4/15 2014 2015 NII positively driven by strategic portfolio growth (+10% y-o-

  11. Slide 11: Income statement: Loan-loss provisions

    Income statement Loan-loss provisions on low levels in overall still favourable market environment Loan-loss provisions EUR millions Key drivers 2015: Q4/14 Q4/15 2014 2015 Net release of portfolio-based allowances (EUR 13 mn) nearly compensated for net Specific allowances -18 -9 -32 -16 additions o

  12. Slide 12: Income statement: Operating cost base reduced

    Income statement Operating cost base significantly reduced by -18% due to strict cost containment – cost target achieved General and administrative expenses EUR millions Key drivers 2015: Q4/14 Q4/15 2014 2015 Operating cost base significantly reduced by -18% y-o-y, mainly reflecting General admin.

  13. Slide 13: Income statement: Result from financial instruments

    Income statement Result from financial instruments primarily driven by derivative valuation and one-off effects Result from financial instruments EUR millions Key drivers 2015: Q4/14 Q4/15 2014 2015 NTI positively driven by Net trading income -9 8 -30 15 − interest rate and FX related derivative the

  14. Slide 14: Income statement: Net Other Operating Result

    Income statement Net Other Operating Result driven by bank levy and one-off effects Result from further business activities EUR millions Key drivers 2015: Q4/14 Q4/15 2014 2015 No more income from IT services for DEPFA (terminated by end of 2014) Net other operating -1 -14 14 -34 income/expenses the

  15. Slide 15: Capitalisation

    Capitalisation Strong capital ratios provide cushion for envisaged future strategic portfolio growth and regulatory uncertainties Basel III: RWA Basel III: Capital ratios EUR billions (IFRS)1 % (IFRS) Transitional rules Fully loaded6,7,8 -12% 15.2 Mid-term in % 12/142,3,4 09/152 12/155 12/155 13.5 1

  16. Slide 16: Segment reporting: Real Estate Finance (REF)

    Segment reporting: Real Estate Finance (REF) Net interest income up +5% y-o-y despite continued margin compression and high early extensions/prepayments – new business margins stable during 2015 Income statement (IFRS, EUR mn) 20141 2015 Key drivers 2015: Operating income 282 358 Operating income up

  17. Slide 17: Segment reporting: Public Investment Finance (PIF)

    Segment reporting: Public Investment Finance (PIF) Increase of profitability based on continued portfolio growth Income statement (IFRS, EUR mn) 20141 2015 Key drivers 2015: Operating income 35 41 Operating revenues up +17%, mainly driven thereof: Net interest income 40 44 by portfolio growth (+11%

  18. Slide 18: Segment reporting: Value Portfolio (VP)

    Segment reporting: Value Portfolio (VP) Continued run-down in line with strategy – 2014 and 2015 affected by value adjustments on HETA Income statement (IFRS, EUR mn) 20141 2015 Key drivers 2015: Operating income 1 -5 Value Portfolio continues to run down in line thereof: Net interest income 79 68 w

  19. Slide 19: Agenda

    Agenda 1 Highlights 2015 2 Financials 3 New business 4 Portfolio 5 Funding 6 Outlook 2016 Appendix Contact details Preliminary Results 2015 (IFRS, pbb Group, unaudited), 2 March 2016 19

  20. Slide 20: New business at record level of EUR 12 bn

    New business New business at record level of EUR 12 bn after careful pipeline selection – supported by continued high demand in CRE markets New business REF Key drivers 2015: EUR billions (Commitments, incl. extensions >1 yr) PIF Continued high demand in CRE markets allowed for +18% selective new bu

  21. Slide 21: New business: Real Estate Finance (REF)

    New business Real Estate Finance (REF): Average gross margin down y-o-y, but kept at nearly stable level throughout the year without compromising on conservative risk approach REF: New business Q4 REF 2014 2015 EUR billions (commitments, incl. extensions >1 yr) Q3 Total volume (EUR bn) 9.0 10.4 Q2 +

  22. Slide 22: New business: Public Investment Finance (PIF)

    New business Public Investment Finance (PIF): New business volume up +33% at stable average gross margin PIF: New business Q4 PIF 2014 2015 EUR billions (commitments) Q3 Total volume (EUR bn) 1.2 1.6 Q2 +33% No. of deals 42 48 1.6 Q1 1.2 Average maturity (years)1 ~6.7 ~8.4 0.5 0.3 Average gross marg

  23. Slide 23: Agenda

    Agenda 1 Highlights 2015 2 Financials 3 New business 4 Portfolio 5 Funding 6 Outlook 2016 Appendix Contact details Preliminary Results 2015 (IFRS, pbb Group, unaudited), 2 March 2016 23

  24. Slide 24: Portfolio: Strategic portfolios up +10%

    Portfolio Strategic portfolios up +10% despite high early repayments Total portfolio 12/141 09/15 12/15 EUR billions (Financing volumes) Strategic Non-strategic portfolios portfolios (run-down) 51.1 50.2 50.0 +10% -18% 21.8 23.4 24.0 22.7 +11% 19.7 18.7 6.6 7.1 7.3 REF PIF VP Total PIF Key drivers 2

  25. Slide 25: Portfolio: Value Portfolio (VP) capital reallocated

    Portfolio Value Portfolio (VP): Freed-up capital continuously reallocated to core segments Value Portfolio RWA Key drivers 2015: EUR billions (Financing volumes)1 Value Portfolio continued to run down in line with strategy, supported by management measures: -18% 22.7 − Asset sale of EUR 0.8 bn with

  26. Slide 26: Portfolio: Well diversified with focus on European markets

    Portfolio Well diversified portfolio with focus on European markets, particularly on Germany 31/12/2015 (EaD, Basel III) Real Estate Finance1 Public Investment Finance Value Portfolio2 Other 5% Other 8% Other 15% Nordics 7% Nordics 3% CEE 9% Germany by region France Portugal 6% Spain 35% 30% 47% Ger

  27. Slide 27: Portfolio: Conservative business and risk strategy

    Portfolio Conservative business and risk strategy to continue – stringent risk policy and integrated front-to-back risk management designed to retain high portfolio quality Total portfolio: Internal ratings (EL classes) REF Portfolio: Avg. weighted LTVs EUR billions (EaD, Basel III)1 (Commitments)3

  28. Slide 28: Portfolio: Sustained low share of problem loans

    Portfolio Sustained low share of problem loans Total problem loans Workout2 Problem loan ratio Total portfolio (thereof: HETA) EUR millions (EaD, Basel III) Restructuring3 (thereof: HETA) % (EaD, Basel III) Real Estate Finance 44% Coverage ratio 3.4% 30% 2.2% 2.1% -32% 1.8% 1,143 1.3% 1.3% 789 777 3

  29. Slide 29: Agenda

    Agenda 1 Highlights 2015 2 Financials 3 New business 4 Portfolio 5 Funding 6 Outlook 2016 Appendix Contact details Preliminary Results 2015 (IFRS, pbb Group, unaudited), 2 March 2016 29

  30. Slide 30: Funding: Reduced funding activities

    Funding Strong early loan repayments and liquidity position allowed for reduced funding activities New long-term funding Pfandbriefe EUR billions1 No benchmark issuance prior to IPO – focus on 2014 2015 optimisation and re-balancing of cover pools Mortgage and Public Pfandbrief in benchmark format S

  31. Slide 31: Funding: Ratings optimised and strengthened

    Funding Ratings optimised and strengthened – optimisation of Pfandbrief ratings will result in a reduction of future unsecured funding need Pre-IPO Post-IPO1 Rating development: 2 Moody’s Increase of Mortgage Pfandbrief Rating from Moody’s Mortgage Pfandbrief Aa2 Aa1 based on OC commitment in 11/15

  32. Slide 32: Funding: pbb direkt retail deposit base

    Funding pbb direkt – retail deposit base continued to increase Retail deposits: Total volume No. of clients1 Key drivers 2015: EUR billions Overnight deposits Number of clients and total volume continued to Term deposits increase − Clients: +8,600 (+46%) ~27,400 − Volume: EUR +1.1 bn (+73%) ~23,200

  33. Slide 33: Agenda

    Agenda 1 Highlights 2015 2 Financials 3 New business 4 Portfolio 5 Funding 6 Outlook 2016 Appendix Contact details Preliminary Results 2015 (IFRS, pbb Group, unaudited), 2 March 2016 33

  34. Slide 34: Outlook 2016: Business model and strategy largely unchanged

    Outlook 2016 Post IPO: Business model and strategy largely unchanged European presence with strong footprint in 1 Germany REF well established with long-standing client 2 relationships and highly experienced, skilled and stable origination teams PIF developing as complementary contributor to 3 Headq

  35. Slide 35: Outlook 2016: Financing environment and CRE markets

    Outlook 2016 Financing environment and CRE markets expected to remain supportive, but highly competitive market and regulatory developments challenging Opportunities Challenges Macroeconomics in core Europe expected Volatile Overall volatile market environment Supportive to remain reasonably intact

  36. Slide 36: Outlook 2016: Key initiatives to support profitability

    Outlook 2016 Key initiatives to support profitability 1 Take increasing advantage of structuring expertise, which allows for higher margins 2 Carefully evaluate further product and market potential in line with existing risk strategy 3 Increase of syndication and placement activities 4 Broaden unsec

  37. Slide 37: Outlook 2016: Operating trends

    Outlook 2016 Operating trends New business (volume) New business (margin) REF Syndication/placements EUR billions (Commitments, incl. extensions >1 yr) bp (gross) EUR billions (nominal)1 PIF 12.0 >200 Market Margin Increase of 10.2 environment ~170 pressure syndication/ to remain expected to placeme

  38. Slide 38: Outlook 2016: Financial expectations

    Outlook 2016 Financial expectations Income statement (IFRS, EUR mn) 2014 (adj.)1 2015 Expectations 2016 NII slightly lower due to competitive situation Net interest and commission income 422 440 NCI stable (operative increase as 2015 benefited from one-offs) As before, driven by negative pull-to-par

  39. Slide 39: Appendix

    Appendix Preliminary Results 2015 (IFRS, pbb Group, unaudited), 2 March 2016 39

  40. Slide 40: Key figures pbb Group

    Key figures pbb Group Income statement (EUR millions) 2012 2013 2014 2014 2015 (reported) (adjusted)1 Net interest income 296 319 421 421 426 Net fee and commission income 23 9 1 1 14 Net trading income 10 -51 -30 -27 15 Net income from financial investments 13 96 -77 32 -32 Net income from hedging

  41. Slide 41: Key figures pbb Group Q4/15 vs. Q4/14

    Key figures pbb Group Q4/15 vs. Q4/14 Income statement (EUR millions) REF PIF VP C&A pbb Group Q4/14 Q4/15 Q4/14 Q4/15 Q4/14 Q4/15 Q4/14 Q4/15 Q4/14 Q4/15 Net interest income 68 82 12 16 35 2 3 2 118 102 Net fee and commission income 2 2 - - -1 - - - 1 2 Net trading income -4 7 -1 - -4 1 - - -9 8 Ne

  42. Slide 42: Key figures pbb Group 2015 vs. 2014

    Key figures pbb Group 2015 vs. 2014 Income statement (EUR millions) REF PIF VP C&A pbb Group 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 Net interest income 294 308 40 44 79 68 8 6 421 426 Net fee and commission income 2 14 - - -1 - - - 1 14 Net trading income -13 14 -4 - -13 1 - - -30 15 Net

  43. Slide 43: Key figures Real Estate Finance (REF)

    Key figures Real Estate Finance (REF) Income statement (EUR millions) 2012 2013 Q1/14 Q2/14 Q3/14 Q4/14 2014 Q1/15 Q2/15 Q3/15 Q4/15 2015 Net interest income 249 258 72 77 77 68 294 75 83 68 82 308 Net fee and commission income 25 10 - - - 2 2 7 2 3 2 14 Net trading income 2 -21 -4 -4 -1 -4 -13 2 1

  44. Slide 44: Key figures Public Investment Finance (PIF)

    Key figures Public Investment Finance (PIF) Income statement (EUR millions) 2012 2013 Q1/14 Q2/14 Q3/14 Q4/14 2014 Q1/15 Q2/15 Q3/15 Q4/15 2015 Net interest income 17 24 7 10 11 12 40 8 14 6 16 44 Net fee and commission income -1 1 - - - - - - - - - - Net trading income 1 -6 -1 -1 -1 -1 -4 1 - -1 -

  45. Slide 45: Key figures Value Portfolio (VP)

    Key figures Value Portfolio (VP) Income statement (EUR millions) 2012 2013 Q1/14 Q2/14 Q3/14 Q4/14 2014 2014 Q1/15 Q2/15 Q3/15 Q4/15 2015 (reported) (adjusted)1 Net interest income 24 30 9 18 17 35 79 79 28 19 19 2 68 Net fee and commission income -1 -1 - - - -1 -1 -1 - - - - - Net trading income 7

  46. Slide 46: Heta Asset Resolution AG (HETA)

    Heta Asset Resolution AG (HETA) Total valuation adjustments of EUR 197.5 mn – pbb’s HETA exposure (nominal EUR 395 mn) valued at ~50% HETA adjustment P&L impact (EUR mn) pre Q4/14 Q4/14 Q1/15 Net income from financial (1.5) (109) (73) investments Total value Loan loss provisions (8) (6) adjustments

  47. Slide 47: Balance sheet

    Balance sheet Specialist lender with attractive German Pfandbrief as major funding instrument Balance sheet: 31/12/2015 (31/12/2014)1 IFRS, EUR billions 66.8 (74.9) 66.8 (74.9) Pos. FV of derivatives 6.6 (8.5) 6.5 (8.0) Neg. FV of derivatives 13.3 (13.8) Liabilities to other banks and customers 0.1

  48. Slide 48: Portfolio: Total portfolio

    Portfolio Total portfolio Regions 31/12/2014 / Total: EUR 65.2 bn EUR billions (EaD, Basel III)1,2 31/12/2015 / Total: EUR 61.4 bn 27.3 25.4 7.2 6.9 7.1 6.1 5.2 4.2 4.9 5.1 3.3 2.3 2.2 1.6 2.0 1.7 1.4 1.4 1.2 1.5 2.1 1.8 0.8 0.6 0.5 0.5 0.4 0.7 0.6 0.6 Germany3 Austria France Spain UK Italy Poland S

  49. Slide 49: Portfolio: Problem loans

    Portfolio Problem loans Total problem loans VP (thereof: HETA) Regions EUR millions (EaD, Basel III) REF EUR million (EaD, Basel III) No. of individual 60 cases 1,143 -32% 1,143 46 44 Japan 2 156 Benelux 314 133 Italy 789 777 789 777 212 110 117 CEE 241 241 105 84 Spain 314 241 241 Nordics 827 Germa

  50. Slide 50: Portfolio: Real Estate Finance (REF)

    Portfolio Real Estate Finance (REF) Portfolio: Regions Portfolio: Property types 31/12/2015: EUR 25.8 bn (EaD, Basel III)1 31/12/2015: EUR 25.8 bn (EaD, Basel III)1 Austria 1% Finland 1% Portugal <1% Czech Republic 2% Italy <1% Hungary 1% Other Europe 3% Hotel/Leisure 4% Other 4% Spain 1% Mixed use

  51. Slide 51: Portfolio: Real Estate Finance (REF) regions

    Portfolio Real Estate Finance (REF) Regions 31/12/2014 / Total: EUR 24.3 bn EUR billions (EaD, Basel III)1 31/12/2015 / Total: EUR 25.8 bn 12.5 12.2 5.0 4.2 2.7 3.2 1.4 1.3 1.2 1.4 0.4 0.3 0.4 0.4 0.3 0.6 0.3 0.3 0.8 0.8 0.2 0.3 <0.1 <0.1 <0.1 <0.1 <0.1 0.0 Germany UK France Poland Sweden Spain Hung

  52. Slide 52: Portfolio: Real Estate Finance (REF) property types

    Portfolio Real Estate Finance (REF) Property types 31/12/2014 / Total: EUR 24.3 bn EUR billions (EaD, Basel III)1 31/12/2015 / Total: EUR 25.8 bn 8.5 7.5 7.2 6.7 4.7 4.1 2.7 2.3 1.6 1.1 1.0 1.2 0.9 0.7 Office Retail/ Residential Warehouse/ Mixed use Hotel/ Other Shopping Logistics Leisure 31/12/2014

  53. Slide 53: Portfolio: Real Estate Finance (REF) loan types

    Portfolio Real Estate Finance (REF) Loan types 31/12/2014 / Total: EUR 24.3 bn EUR billions (EaD, Basel III)1 31/12/2015 / Total: EUR 25.8 bn 23.3 21.6 2.0 1.9 0.5 0.4 0.1 0.2 Investment loans Development loans Customer derivatives Other 31/12/2014 31/12/2015 Customer derivatives 2% Other <1% Custom

  54. Slide 54: Portfolio: Real Estate Finance (REF) internal ratings

    Portfolio Real Estate Finance (REF) Internal ratings (EL classes) 31/12/2014 / Total: EUR 24.3 bn EUR billions (EaD, Basel III)1 31/12/2015 / Total: EUR 25.8 bn Investment grade Non-investment grade 6.3 5.7 4.6 4.1 3.4 3.6 3.0 2.9 2.6 2.2 1.7 1.2 1.2 1.4 0.8 0.9 0.8 0.6 0.50.5 <0.1 0.2 0.2 0.5 0.4 0

  55. Slide 55: Portfolio: Public Investment Finance (PIF)

    Portfolio Public Investment Finance (PIF) Portfolio: Regions Portfolio: Borrower classification1 31/12/2015: EUR 8.3 bn (EaD, Basel III) 31/12/2015: EUR 8.3 bn (EaD, Basel III) UK <1% Supra <1% Sweden <1% Corporation Finland 2% Other Europe 4% Sovereign Supra Austria 3% <1% 7% Public Sector Enterpri

  56. Slide 56: Portfolio: Public Investment Finance (PIF) regions

    Portfolio Public Investment Finance (PIF) Regions 31/12/2014 / Total: EUR 7.8 bn1 EUR billions (EaD, Basel III) 31/12/2015 / Total: EUR 8.3 bn 2.9 2.8 2.5 2.2 2.1 1.7 0.3 0.3 0.3 0.3 0.2 0.2 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Germany France Spain Austria Finland Supra UK Sweden Other Europe 31/12/20141 3

  57. Slide 57: Portfolio: Public Investment Finance (PIF) borrower classification

    Portfolio Public Investment Finance (PIF) Borrower classification1 31/12/2014 / Total: EUR 7.8 bn2 EUR billions (EaD, Basel III) 31/12/2015 / Total: EUR 8.3 bn 3.4 3.5 1.5 1.5 1.2 1.1 1.1 0.8 0.5 0.6 0.3 0.4 0.1 <0.1 Sovereign Sovereign (related) Regional Government Regional Public Sector Supra Corp

  58. Slide 58: Portfolio: Public Investment Finance (PIF) internal ratings

    Portfolio Public Investment Finance (PIF) Internal ratings (EL classes) 31/12/2014 / Total: EUR 7.8 bn1 EUR billions (EaD, Basel III) 31/12/2015 / Total: EUR 8.3 bn Investment grade Non-investment grade 4.54.6 2.0 1.4 1.00.8 0.40.4 0.3 <0.1 0.20.2 <0.1 0.0 <0.1 0.2 <0.1 0.0 0.00.0 0.00.0 0.00.0 0.00

  59. Slide 59: Portfolio: Value Portfolio (VP)

    Portfolio Value Portfolio (VP) Portfolio: Regions Portfolio: Borrower classification2 31/12/2015: EUR 21.7 bn (EaD, Basel III)1 31/12/2015: EUR 21.7 bn (EaD, Basel III)1 Czech Republic <1% Finland <1% Hungary 1% Other Europe 2% Poland 1% Rest of World 2% Supra Corporation <1% France 3% Financial Ins

  60. Slide 60: Portfolio: Value Portfolio (VP) regions

    Portfolio Value Portfolio (VP) Regions 31/12/2014 / Total: EUR 26.2 bn2 EUR billions (EaD, Basel III)1 31/12/2015 / Total: EUR 21.7 bn 8.8 6.6 6.7 6.3 3.3 2.3 1.9 1.8 1.4 1.4 1.1 1.1 0.9 0.7 0.8 0.6 0.5 0.3 0.4 0.3 <0.1<0.1 0.3 0.3 <0.1 <0.1 Germany Austria Italy Spain Portugal Supra France Poland H

  61. Slide 61: Portfolio: Value Portfolio (VP) borrower classification

    Portfolio Value Portfolio (VP) Borrower classification1 31/12/2014 / Total: EUR 26.2 bn3 EUR billions (EaD, Basel III)2 31/12/2015 / Total: EUR 21.7 bn 9.8 8.1 7.4 6.0 3.5 2.4 1.7 1.6 1.7 1.6 1.0 0.8 1.1 1.1 0.0 <0.1 <0.1 <0.1 <0.1 0.0 Sovereign Sovereign Regional Regional Public Sector Public Secto

  62. Slide 62: Portfolio: Value Portfolio (VP) internal ratings

    Portfolio Value Portfolio (VP) Internal ratings (EL classes) 31/12/2014 / Total: EUR 26.2 bn2 EUR billions (EaD, Basel III)1 31/12/2015 / Total: EUR 21.7 bn Investment grade Non-investment grade 17.6 15.1 3.13.4 1.61.1 <0.1 1.00.7 0.7 <0.1 0.90.4 1.10.8 0.20.2 0.00.0 0.00.0 0.00.0 0.00.0 0.00.0 0.00

  63. Slide 63: Portfolio: Consolidation & Adjustments (C&A)

    Portfolio Consolidation & Adjustments (C&A) Portfolio: Regions Portfolio: Borrower classification4 31/12/2015: EUR 5.6 bn (EaD, Basel III)1,2 31/12/2015: EUR 5.6 bn (EaD, Basel III)1,2 Rest of World 5% Other Europe 4% Financial Institution France UK 16% 1% 5% Sovereign3 Supra 33% 10% Supra 10% Spain

  64. Slide 64: Portfolio: Consolidation & Adjustments (C&A) regions

    Portfolio Consolidation & Adjustments (C&A) Regions 31/12/2014 / Total: EUR 6.9 bn EUR billions (EaD, Basel III)1,2 31/12/2015 / Total: EUR 5.6 bn 3.8 3.5 0.9 0.8 0.6 0.7 0.3 0.4 0.3 0.3 0.3 0.3 0.2 <0.1 <0.1 0.0 <0.1 0.0 0.0 0.0 Germany3 Spain Supra UK France Italy Sweden Austria Other Europe Rest

  65. Slide 65: Portfolio: Consolidation & Adjustments (C&A) borrower classification

    Portfolio Consolidation & Adjustments (C&A) Borrower classification1 31/12/2014 / Total: EUR 6.9 bn EUR billions (EaD, Basel III)2,3 31/12/2015 / Total: EUR 5.6 bn 1.9 1.8 1.7 1.6 1.4 0.9 0.8 0.8 0.6 0.4 0.4 0.2 <0.1 0.0 Sovereign4 Sovereign (related) Regional Government Public Sector Supra Financia

  66. Slide 66: Portfolio: Consolidation & Adjustments (C&A) internal ratings

    Portfolio Consolidation & Adjustments (C&A) Internal ratings (EL classes) 31/12/2014 / Total: EUR 6.9 bn EUR billions (EaD, Basel III)1,2 31/12/2015 / Total: EUR 5.6 bn Investment grade Non-investment grade 4.54.4 1.7 0.70.6 <0.1 0.5 0.0 <0.1 <0.1 0.00.0 0.00.0 0.00.0 0.00.0 0.00.0 0.00.0 0.00.0 0.0

  67. Slide 67: Funding: Public benchmark issuances since 2014

    Funding Public benchmark issuances since 2014 Type WKN Launch Date Maturity Date Size Spread1 Coupon Issue/Reoffer Price Mortgage Pfandbrief A1X3LT 14.01.2014 21.01.2022 EUR 500 mn +17bp 1.875% 99.362% Mortgage Pfandbrief (2nd Tap) A1MLUW 13.02.2014 03.06.2019 EUR 50 mn +10bp 2.125% 104.988% Mortgag

  68. Slide 68: Ratings: Mandated ratings

    Ratings Mandated ratings as of 29 February 2016 S&P1 DBRS Moody’s2 Pfandbrief ratings Public Sector Pfandbrief Aa1 Mortgage Pfandbrief Aa1 Bank ratings Long-term BBB BBB Outlook/Trend Stable Stable Short-term A-2 R-2 (high) Stand-alone rating3 bbb- BBB Disclaimer: The rating information published in

  69. Slide 69: Definition of borrower classifications

    Definition of borrower classifications Borrower classification Definition Sovereign Direct and indirect obligations of Central Governments, Central Banks and National Debt Agencies Sovereign (related) Indirect obligations of Non Sovereigns with an explicit first call guarantee by a Sovereign Regiona

  70. Slide 70: Contact details

    Contact details Walter Allwicher Head of Communications +49 (0)89 2880 28787 walter.allwicher@pfandbriefbank.com Michael Heuber Head of Investor Relations / Rating Agency Relations +49 (0)89 2880 28778 michael.heuber@pfandbriefbank.com Website www.pfandbriefbank.com/investor-relations.html © Deutsch

Deutsche Pfandbriefbank — FY2015 Earnings Presentation on 6ix