Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — FY2024 Earnings Presentation
72 slides from Deutsche Pfandbriefbank's earnings presentation, Feb 27, 2025
Slide 1: Analyst Presentation Results Q4/FY 2024
ANALYST PRESENTATION Results Q4/FY 2024 27 February 2025 Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 1
Slide 2: Disclaimer
Disclaimer → This presentation is not an offer or invitation to subscribe for or purchase any securities in any jurisdiction, including any jurisdiction of the United States. Securities may not be offered or sold in the United States absent registration or pursuant to an available exemption from reg
Slide 3: Key Messages
KEY MESSAGES → Delivered as guided – pre-tax profit up more than 15% y-o-y to € 104 mn → Operating income of € 544 mn at upper end of guidance (€ 525-550 mn) → Operating expenses reduced by almost 4% y-o-y despite investments / CIR of 49% below guidance of ~50% → Risk provisioning 20% down y-o-y to
Slide 4: Agenda
AGENDA 1. Highlights 2024 and P&L 2. Portfolio Quality ▪ Focus − USA − Development − Germany 3. Funding 4. Capital 5. Summary and Outlook 6. Appendix Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 4
Slide 5: Operating & Financial Overview: Focus on profitability
OPERATING & FINANCIAL OVERVIEW Focus on profitability REF new business → New business with strict REF portfolio € bn (financing volume) → REF portfolio down y-o-y, € bn (commitments, incl. extensions > 1 yr.) focus on profitability in line reflecting transition to Q4 9M with Strategy 2027 Strategy 2
Slide 6: Operating & Financial Overview: Delivered as guided
OPERATING & FINANCIAL OVERVIEW Delivered as guided Operating income € mn (IFRS) → Transition to a more profitable General admin. Expenses € mn (IFRS) → Beat of guidance despite portfolio started investments NII/NCI Realisation & other income Personnel Incl. non-recurring → Active balance sheet manag
Slide 7: Operating Income
OPERATING INCOME Upper end of guidance (€ 525-550 mn) Operating income € mn (IFRS) Quarterly view Realisation income € mn (IFRS) NII/NCI Realisation income Other Income Derecognition Prepayment fees Derecognition Prepayment fees Incl. € 55 mn of time barred Others of time barred Others one-off incom
Slide 8: Operating Expenses
OPERATING EXPENSES Costs successfully managed – strict focus on cost discipline Operating expenses € mn (IFRS) Quarterly view → Operating expenses down y-o-y by 4% (€ -10 mn), despite investments Write-downs non-personnel personnel • IT infrastructure and digitalisation 49% • IT transformation final
Slide 9: Risk Costs
RISK COSTS Minus 20% y-o-y – real estate markets bottoming out Net income from risk provisioning € mn (IFRS) Stage 1&21 Stage 3 Other2 Stage 1&2 € mn (IFRS) Other Other 2023 2024 -10 3 1 -2 1 14 12 7 22 -7 5 -9 1 -10 Germany -2 -9 -25 -5 Germany -9 -19 -37 -63 -59 -95 -30 -15 -100 -47 UK 13 -184 -56
Slide 10: Risk Costs: Loss allowances reduced
RISK COSTS Loss allowances reduced by active NPL management Balance sheet loss allowances € mn Stage 1&2 € mn (IFRS) Other Other Germany 623 UK 10 Germany 589 568 13 20 39 539 543 8 30 41 27 142 33 96 39 UK 134 119 93 19 Stage 1 9M/24 12M/24 Stage 2 414 442 387 445 411 € 123 mn € 132 mn Stage 3 12/2
Slide 11: Agenda
AGENDA 1. Highlights 2024 and P&L 2. Portfolio Quality ▪ Focus − USA − Development − Germany 3. Funding 4. Capital 5. Summary and Outlook 6. Appendix Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 11
Slide 12: REF Portfolio Performing
REF PORTFOLIO PERFORMING Portfolio stabilising as Real Estate markets are bottoming out REF Portfolio € bn (EaD, Basel III) → REF portfolio downsized (-12%), reflecting transition to Strategy 2027 55% 56% 56% 54% 53% • Focus on profitability – selective business in slow investment market Avg. LTV1 •
Slide 13: REF Portfolio Performing: Quality remains solid
REF PORTFOLIO PERFORMING Portfolio quality remains solid Performing Portfolio € bn (EaD, Basel III) → Performing REF portfolio reduced by € 3.7 bn (Q4/24: € 0.4 bn) • Repayments & others (FY24: € 1.9 bn; Q4/24: € 0.2 bn, incl. USD-effect of € -0.2 bn) 31.5 • Transfer to NPL (FY24: € 0.9 bn; Q4/24: €
Slide 14: REF Portfolio NPL
REF PORTFOLIO NPL Driven by US loans and German developments NPL Portfolio € mn (EaD, Basel III) → Increase of NPL portfolio mainly driven by US loans and German developments – active NPL management ongoing → Q4/24 with 4 additions and 5 reductions +47 1,903 • Additions: 3 US office loans (€ 160 mn)
Slide 15: Focus: USA Performing
FOCUS: USA PERFORMING Portfolio reduced to € 3.3 bn in 2024 Performing Portfolio € bn (EaD, Basel III) → Performing US portfolio reduced by € 1.2 bn (Q4/24: stable) through • repayments & others (FY24: € 0.1 bn; Q4/24 FX-effect of € -0.2 bn) 4.5 • transfer to NPL (FY24: € 0.6 bn; Q4/24: € 0.2 bn) •
Slide 16: Focus: USA NPL
FOCUS: USA NPL Limitation of NPL portfolio increase due to active management → Q4/24 with 3 additions and 4 reductions Non-Performing Portfolio € mn (EaD, Basel III) • Additions: 3 US office loans (€ 160 mn) • Reduction: 1 US office (€ 25 mn, repaid) -25 • Furthermore, 3 US loans (€ 200 mn) restruct
Slide 17: Focus: Development Portfolio
FOCUS: DEVELOPMENT PORTFOLIO Significant de-risking – portfolio reduced by € 1 bn Portfolio € bn (EaD, Basel III) Phase 31/12/2024 (commitments, Basel III) Significant change from construction to finishing phase in 2024 € mn (commitments, Basel III) Performing Non-performing -31% Land phase Construc
Slide 18: Focus: Germany Performing
FOCUS: GERMANY PERFORMING Well diversified, high quality portfolio Performing Portfolio € bn (EaD, Basel III) → Performing German portfolio reduced by € 1.2 bn (Q4/24: € 0.2 bn) through • Repayments & others (FY24: € 1.0 bn; Q4/24: € 0.1 bn) 13.8 • Transfer to NPL (FY24: € 0.1 bn; Q4/24: € 0.1 bn) 1
Slide 19: Agenda
AGENDA 1. Highlights 2024 and P&L 2. Portfolio Quality ▪ Focus − USA − Development − Germany 3. Funding 4. Capital 5. Summary and Outlook 6. Appendix Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 19
Slide 20: Funding and Liquidity
FUNDING AND LIQUIDITY Resilient and balanced funding strategy supports strong liquidity position Active funding 2024 in difficult market environment LCR NSFR → Pfandbrief was a highly resilient source of funding with more than € 2 bn issued → € 500 mn, 3yr, green senior benchmark issued in 11/24 200
Slide 21: Funding and Liquidity: Pfandbrief and Senior Unsecured issuance
FUNDING AND LIQUIDITY Successful issuance of Pfandbrief and Senior Unsecured New long-term funding1 Recapture 2024 € bn 2022: € 6.0 bn 2023: € 3.3 bn 2024: € 2.5 bn → Pfandbrief funding completed successfully • Total Pfandbrief funding of € 2 bn, including: Spread 12 138 39 205 63 187 (avg, bp)2 • W
Slide 22: Retail Deposits
RETAIL DEPOSITS Managed to needs Retail deposits – development and maturity profile1 € bn → Retail deposits flexible funding instrument • Peaked above € 8 bn in H1/24 Call money 1-3Y term 4-5Y term 6-10Y term • In H2/24, focus on efficiency and cost optimisation – aligning deposit volume with overal
Slide 23: Agenda
AGENDA 1. Highlights 2024 and P&L 2. Portfolio Quality ▪ Focus − USA − Development − Germany 3. Funding 4. Capital 5. Summary and Outlook 6. Appendix Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 23
Slide 24: Capital
CAPITAL Basel IV F-IRBA applied since 1st January 2025 Basel III: capital and leverage ratios (IFRS) → Capital transition well managed → Transition into Basel IV F-IRBA regime started in Q2/24 – for transitional period, Transitional period models calibrated towards standardised risk parameters • Tem
Slide 25: Agenda
AGENDA 1. Highlights 2024 and P&L 2. Portfolio Quality ▪ Focus − USA − Development − Germany 3. Funding 4. Capital 5. Summary and Outlook 6. Appendix Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 25
Slide 26: Summary
SUMMARY → pbb delivered as promised → Stringent focus on balance sheet and NPL management → Capital transition successful – strong position supports Strategy 2027 → Transition to Strategy 2027 started with focus on increasing profitability → Real Estate markets bottoming out, supporting further impr
Slide 27: Investment Sentiment
INVESTMENT SENTIMENT Cap rates peaking and transaction volumes stabilising Europe – prime property yield and interest rates (%) US – cap rates and interest rates (%) 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 -1 -1 Q1 Q1 Q3 Q1 Q3 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
Slide 28: Office Markets
OFFICE MARKETS Real Estate markets bottoming out European Office market – prime rents and yields US Office market – rents and cap rates €/sqm/year % $/sf/year forecast % forecast 2500 7 80 7 6 70 6 2000 60 5 5 1500 50 4 4 40 1000 3 30 3 2 20 2 500 1 10 1 0 0 0 0 Q1 Q3 Q1 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q
Slide 29: Guidance 2025
GUIDANCE 2025 New business (incl. extensions > 1 year) € 6.5-7.5 bn REF Portfolio Financing volume € ~29 bn Operating Income € 500-540 mn thereof: NII + NCI € 470-490 mn P&L LLP << 2024 CIR ~50% Pre- tax profit >> 2024 Profitability RoTE before taxes 3.5-4.5% Capitalisation CET 1 ratio (Basel IV F-I
Slide 30: Agenda
AGENDA 1. Highlights 2024 and P&L 2. Portfolio Quality ▪ Focus − USA − Development − Germany 3. Funding 4. Capital 5. Summary and Outlook 6. Appendix Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 30
Slide 31: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG Contact Details Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 31
Slide 32: CMD Strategy Update: Strategy 2027 three pillars
CMD STRATEGY UPDATE Strategy 2027 builds on three key pillars RE FINANCE NON- RE INVESTMENT SOLUTIONS WHAT? SOLUTIONS CORE pbb invest and Originate & Value preserving run-down of Diversification and increase in Cooperate profitability Non-Core portfolio Flexible, international and efficient platform
Slide 33: Key Performance Indicators for 2027
CMD STRATEGY UPDATE Key Performance Indicators for 2027 OPERATING INCOME FEE INCOME CIR € ~600 mn ~10% <45% RoTE1 CAPITAL DISTRIBUTION CET-1 RATIO3 ≥50% 8% >15.5% (incl. share buybacks)2 Note: 1) Return on Tangible Equity (before tax); RoTE excl. deferred taxes, goodwill & other intangible assets 2)
Slide 34: RoTE definition
RoTE definition Return on Tangible Equity (RoTE) FY/24 Profit before tax1) minus AT1-coupon RoTE € 79 mn1) IFRS equity2) before tax minus AT1-capital2) € 2,914 mn2) 2.7% (IFRS) minus goodwill and other intangible assets2) minus deferred tax income assets2) Net income after tax attributable to shareh
Slide 35: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG – Contact Details Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 35
Slide 36: Key Figures: pbb Group
KEY FIGURES pbb Group Income statement (€ mn) 2022 Q1/23 Q2/23 Q3/23 Q4/23 2023 Q1/24 Q2/24 Q3/24 Q4/24 2024 Net interest income 489 106 110 132 134 482 125 121 113 106 465 Net fee and commission income 8 1 1 1 0 3 1 2 0 2 5 Net income from fair value measurement 20 1 -1 2 -2 0 -3 -1 8 -7 -3 Net inc
Slide 37: Key Figures: Real Estate Finance (REF)
KEY FIGURES Real Estate Finance (REF) Income statement (€ mn) 2022 Q1/234 Q2/234 Q3/234 Q4/234 20234 Q1/24 Q2/24 Q3/24 Q4/24 2024 Net interest income 420 97 101 118 121 437 116 113 107 102 438 Net fee and commission income 8 1 1 2 0 4 1 3 0 2 6 Net income from fair value measurement 14 0 -1 2 -1 0 -
Slide 38: Key Figures: Non-Core (PIF & VP)
KEY FIGURES Non-Core (PIF & VP) Income statement (€ mn) 2022 Q1/234 Q2/234 Q3/234 Q4/234 20234 Q1/24 Q2/24 Q3/24 Q4/24 2024 Net interest income 67 9 9 14 13 45 9 8 6 4 27 Net fee and commission income 0 0 0 -1 0 -1 0 -1 0 0 -1 Net income from fair value measurement 6 1 0 0 -1 0 -1 0 3 -3 -1 Net inco
Slide 39: Balance Sheet
BALANCE SHEET Balance Sheet IFRS, € bn Assets 31/12/24 31/12/23 Liabilities & equity 31/12/24 31/12/23 Financial assets at fair value through P&L 1.2 0.9 Financial liabilities at fair value through P&L 0.7 0.7 thereof thereof Positive fair values of stand-alone derivatives 0.5 0.5 Negative fair valu
Slide 40: Balance Sheet: Pro-active management
BALANCE SHEET Pro- active management of pbb´s balance sheet Active REF Management of Liability Portfolio Management Non-Core Portfolio Management → Portfolio transaction in May 2024 – sale of → Non-strategic portfolio in run-down – → Pro-active liability management aims to € 0.9 bn performing loan p
Slide 41: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG – Contact Details Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 41
Slide 42: REF New Business
REF NEW BUSINESS Selective new business volume with margins on elevated level Volume of strategic REF portfolio in € bn → Strategic REF portfolio down y-t-d and q-o-q, in line with Strategy 2027 financing volume → Avg. portfolio margin further up → Selective new business volume of € 5.1 bn with focu
Slide 43: REF New Business: Diversification
REF NEW BUSINESS Diversification supports management of the cycle As of 31/12/24 Regions Property types Mixed use/ Hotel <1% other Other Logistics/ € 5.1 bn 14% storage 15% 2% Nordics New business 9% 43% Germany Commitments, Retail 14% CEE 6% 52% Office incl. extensions > 1 year 15% 16% USA 1% 12% R
Slide 44: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG – Contact Details Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 44
Slide 45: Portfolio: Total portfolio
PORTFOLIO Total portfolio Regions EaD, Basel III 31/12/2023 / Total: € 51.3 bn 31/12/2024 / Total: € 43.9 bn Czech Republic 1% Czech Republic 1% Other Rest of World 1% Finland 1% Other Rest of World 1% Finland 1% Sweden 2% Hungary < 1% Sweden Hungary < 1% Spain Spain 3% Italy 3% Italy 1% 3% 3% Polan
Slide 46: Portfolio: Real Estate Finance (REF)
PORTFOLIO Real Estate Finance (REF) Regions Property types Mixed use 1% Other 1% Mixed use 1% Hotel 3% Other 1% Austria 1% Other Europe Austria 1% Other Europe Hotel 3% Retail Czech Republic 2% 9% Czech Republic 2% Retail 10% Sweden 4% 10% 10% Sweden 4% Poland 6% Poland 43% Germany 6% 45% Germany Lo
Slide 47: REF Portfolio: LTV development
REF PORTFOLIO LTV development reflects market environment LTV – Regions LTV – Property types (€ bn, commitments, Basel III) 1 (€ bn, commitments, Basel III) 1 12/23 09/24 12/24 12/23 09/24 12/24 Avg. LTV Avg. LTV 12/23: 53% / 09/24: 56% / 12/24: 56% 12/23: 53% / 09/24: 56% / 12/24: 56% 68% 67% 58% 6
Slide 48: REF Portfolio – LTV Cluster
REF PORTFOLIO – LTV CLUSTER LTV development reflects market environment Total REF portfolio € mn, commitments, Basel III Office € mn, commitments, Basel III) 12/23 09/24 12/24 Avg. LTV1: 12/23: 53% / 09/24: 56% / 12/24: 56% Avg. LTV1: 12/23: 56% / 09/24: 61% / 12/24: 62% 11,499 9,813 Volume € bn: 12
Slide 49: REF Portfolio: Sub-segments (Office)
REF PORTFOLIO Sub-segments Evaluation of current Property Regions Challenges Risk positioning situation → Office demand in Europe is stabilizing evidenced → Cooling of tenant market due to overall → Focus on good locations in main European and by mostly positive net absorption forecasts for economic
Slide 50: REF Portfolio: Sub-segments (Logistics)
REF PORTFOLIO Sub-segments Evaluation of current Property Regions Regions Evaluation of current situation Challenges Challenges Risk positioning Risk positioning situation → E-commerce, automation & AI and the need for → Monoline logistics centres depending on → Strategic approach; expert team since
Slide 51: REF Portfolio: Sub-segments (Retail)
REF PORTFOLIO Sub-segments Evaluation of current Property Regions Regions Evaluation of current situation Challenges Challenges Risk positioning Risk positioning situation → Lower inflation and improving real earnings → Short Term: threats to income stability as well as → Selective approach with con
Slide 52: REF Portfolio: Sub-segments (Residential)
REF PORTFOLIO Sub-segments Evaluation of current Property Regions Regions Evaluation of current situation Challenges Challenges Risk positioning Risk positioning situation → The market of owner-occupied properties is → Increased interest level puts pressure on → Portfolio volume of € 5.1 bn with avg
Slide 53: REF Portfolio: Sub-segments (Hotel)
REF PORTFOLIO Sub-segments Evaluation of current Property Regions Regions Evaluation of current situation Challenges Challenges Risk positioning Risk positioning situation → The travel recovery expected to continue in → Recovery mostly achieved with many → Selective approach and strict adherence to
Slide 54: Focus: Office Performing
FOCUS: OFFICE PERFORMING Office portfolio well diversified by regions with US share of 20% → Performing Office portfolio reduced by € 2.0 bn (Q4/24: € 0.2 bn) through Performing Portfolio € bn (EaD, Basel III) • Repayments & others (FY24: € 0.9 bn; Q4/24: € 0.2 bn minus USD-effect of € -0.2 bn) • Tr
Slide 55: Focus: Office NPL
FOCUS: OFFICE NPL Pressure on office NPL portfolio only from US loans → Limitation of increase in Office NPL portfolio due to active NPL management Non-Performing Portfolio € mn (EaD, Basel III) → Q4/24 with 4 additions and 4 reductions • Additions: 3 US office loans (€ 160 mn), 1 German development
Slide 56: NPL Portfolio
NPL PORTFOLIO Active restructuring/work-out ongoing Geographical breakdown € mn (EaD, Basel III) Breakdown by property type € mn (EaD, Basel III) 1,903 1,903 1,684 1,684 231 1,535 210 1,535 264 267 207 164 Others 655 Others & Guaranteed 187 268 263 339 France 588 Hotel 259 364 CEE 404 Logistics UK R
Slide 57: Portfolio: Non-Core Unit (PIF & VP)
PORTFOLIO Non-Core Unit (PIF & VP) Regions Borrower classification1 Supranational 1% Supranational 1% Corporation 1% Finland <1% Other Europe 3% Finland <1% Other Europe 3% Financial Institution 2% Corporation 1% Financial Institution 3% PSE (related) <1% UK 1% Other Rest of World 2% UK 1% Other Res
Slide 58: Portfolio: Consolidation and Adjustments (C&A)
PORTFOLIO Consolidation and Adjustments (C&A) Regions Borrower classification2 Internal ratings (EL classes) Other Europe Sweden <1% Other Rest of World Supra Corporation 2% 6-8 UK <1% 8% <1% USA <1% 8% Poland 1% 7% Financial Italy 3% Institution 16% Spain 4% 100% Investment France 5% PSE 2% grade3
Slide 59: 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
Slide 60: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG Contact Details Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 60
Slide 61: Funding and Liquidity: Diversified funding base
FUNDING AND LIQUIDITY Diversified funding base Diversified Funding Base Retail Deposits Unsecured Funding 30/12/2024: € bn, nominal values Wholesale Unsecured 18% 26% 4.1 40% 48% 49% 48% 0.5 2.1 14.6 82% 74% 60% 52% 51% 52% 6.0 € 42.4 bn 12/19 12/22 12/23 06/24 09/24 12/24 → Over 50% resilient secur
Slide 62: Mortgage Cover Pool
MORTGAGE COVER POOL Diversification by countries and property types Mortgage Cover Pool Spain 1.8% Switzerland 0.3% Key metrics Mortgage cover pool (nominal) 31/12/2024 Austria 1.1% Italy 0.4% Benelux Pfandbriefe outstanding € 15.3 bn 4% Other Nordic countries 7% Cover funds € 18.9 bn 23% Over-colla
Slide 63: Pfandbrief Cover Pool
PFANDBRIEF COVER POOL ISC and the effect of the Mortgage Lending Value – very simplified example! Interest Service Cover Loan-to-Value Ratio (explanatory calculation for existing loans) Loan Valuation Refinancing MV € 100 mn Borrower’s Difference MV Equity e.g. 35% € 5.0 mn rent p.a. at 5% property
Slide 64: Funding: Own Funds and Eligible Liabilities
FUNDING Own Funds and Eligible Liabilities exceed regulatory requirements € bn SP 5 SNP Other Subordinated Tier 1 CET1 1 → Buffer for Senior Preferred (SP) investors due to high volume of capital instruments and Senior Non- MREL2 Composition of Rundown Preferred (SNP) liabilities (31/12/2024) Liabil
Slide 65: Mandated Ratings
MANDATED RATINGS Bank ratings S&P Long-term BBB- Outlook Negative Short-term A-3 Stand-alone rating1 bb+ Long Term Debt Ratings “Preferred” senior unsecured Debt2 BBB- “Non-preferred” senior unsecured Debt3 BB- Subordinated Debt B+ Pfandbrief ratings Moody’s Mortgage Pfandbrief Aa1 Public Sector Pfa
Slide 66: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG Contact Details Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 66
Slide 67: ESG Programme
ESG ESG Programme → ESG at core of pbb’s strategy: • pbb can help to reduce the real estate sector`s ESG Committee significant CO2 impact • Green finance bank and transformation partner ESG Programme Management ESG Expert Group Green Financing Committee • Current KPIs set initial roadmap for establi
Slide 68: ESG: pbb continues to execute on its strategy
ESG pbb continues to execute on its strategy 2021: 2017: 2020: Holistic organisational set-up of ESG 1st Non-financial Report Introduction of Green Programmme (NFRD) Bond Framework Introduction of green building scoring model & Focus on Transparency pbb Green Loan Framework of pbb‘s portfolio and De
Slide 69: Green Loan Criteria
GREEN LOAN pbb Green Loan Framework aligned with current regulatory and market developments – specific metrics defined for each criterion pbb Scoring Model MAX SCORE: 100 Points III. Additional Sustainability I. Energy Efficiency II. Building Certification Factors • Energy demand/-consumption • “Gre
Slide 70: ESG: Continued progress in sustainable finance
ESG Continued progress in sustainable finance activities Green share of REF portfolio → 85% of REF portfolio scored – scoring of remaining portfolio ongoing (commitments, green loan eligible assets, %) → Green share of total REF portfolio currently at 29% resp. € 9.0 bn (35% based on scored portfoli
Slide 71: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG Contact Details Annual Results 2024 (IFRS, pbb Group, audited, approval from the Supervisory Board pending), 27 February 2025 / © Deutsche Pfandbriefbank AG 71
Slide 72: Contact Details
CONTACT DETAILS Grit Beecken Axel Leupold Head of Communications, Marketing and Investor Relations Investor Relations +49 (0)89 2880 28787 +49 (0)89 2880 23648 grit.beecken@pfandbriefbank.com axel.leupold@pfandbriefbank.com Michael Heuber Website Head of Investor Relations www.pfandbriefbank.com/inv
Deutsche Pfandbriefbank — FY2024 Earnings Presentation on 6ix