Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Q2 2013 Earnings Presentation
32 slides from Deutsche Pfandbriefbank's earnings presentation, Aug 13, 2013
Slide 1: Results Q2 2013: pbb continues positive development
Results Q2 2013: pbb continues positive development Alexander von Uslar, CFO 13th August 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 Q2 2013
Highlights Q2 2013 Financials New business Pre-tax profit up in Q2 (EUR 31 mn/+7% q-o-q) and H1 2013 (EUR 60 mn/+18% y-o-y) and in line with full-year target Funding Stable capital structure with strong Tier I ratio (pro-forma) of 20.1% Cover pools Positive new business trend – total volume (Q2 2013
Slide 4: Income Statement
Income Statement Financials Pre-tax profit up in Q2 and H1 2013 and in line with full-year target of EUR >100 mn New Business Pre-tax Profit (IFRS) EUR millions 49 Key drivers Q2 2013: 30 29 31 Stable revenues from loan business – 21 24 Q1 included negative effect from derivative Funding valuation 1
Slide 5: Income Statement (IFRS): Result from Loan Business
Income Statement (IFRS) Financials Stable revenues from loan business New Business Result from Loan Business EUR millions Q1 2013 Q2 2013 Key drivers Q2 2013: Net interest and similar 79 74 Less income from one-off effects (e.g. income prepayment fees) in Q2 – adjusted net interest Funding income st
Slide 6: Income Statement (IFRS): Further Result from Business Activities
Income Statement (IFRS) Financials Further result from business activities primarily driven by FMS-WM servicing and IT services for DEPFA New Business Further Result from Business Activities EUR millions Q1 2013 Q2 2013 Key drivers Q2 2013: Balance of other 32 24 FMS-WM servicing fee operating IT se
Slide 7: Income Statement (IFRS): Other Operating Income and Administrative Expenses
Income Statement (IFRS) Financials FMS-WM servicing fee will fall away after exit of the servicing by end of Sep 2013, but corresponding general administrative expenses will also largely be reduced New Business Balance of Other Operating Income/Expenses General Administrative Expenses EUR millions E
Slide 8: Income Statement (IFRS): Result from Financial Instruments
Income Statement (IFRS) Financials Derivative valuation subject to market developments New Business Result from Financial Instruments EUR millions Q1 2013 Q2 2013 Key drivers Q2 2013: Net trading income -12 10 Positive effect (EUR 8 mn) from derivative valuation (bilateral CVA), after negative effec
Slide 9: Balance Sheet (IFRS)
Balance Sheet (IFRS) Financials Balance sheet development primarily driven by market-related and FMS-WM effects as well as strategy-conform run-down of non-strategic assets New Business Total Assets EUR billions -6% Key drivers Q2 2013: 97.1 89.0 83.8 EUR 3.2 bn reduction due to market-related and 1
Slide 10: Capitalisation
Capitalisation Financials Stable capital structure with strong Tier I ratio (pro-forma) of 20.1% 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. According to the ‘Waiver Rule’ regulated in Sec. 2
Slide 11: New Business
New Business Financials Positive new business trend – total volume further increased q-o-q and even more than doubled y-o-y New Business Total New Business PIF EUR billions (Commitments, incl. extensions >1 yr) REF +157% REF FY 2012 H1 2013 Total volume € 4.9 bn € 2.8 bn 2.7 New commitments € 2.9 bn
Slide 12: Real Estate Finance (REF) new business and portfolio
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 H1 2013: EUR 2.8 bn (Commitments, incl. extensions >1 yr) EUR billions (EaD)2 12/2012 06/2013 Germany 1,316 (47%) German
Slide 13: Public Investment Finance (PIF) new business
New Business Financials Public Investment Finance (PIF): New business focus expanded to the Nordic countries – first transactions closed in Finland New Business New Business: Regions New Business: Counterparty Types H1 2013: EUR 0.6 bn (Commitments, incl. extensions >1 yr) H1 2013: EUR 0.6 bn (Commi
Slide 14: Funding: Strong funding activities continued
Funding Financials Strong funding activities continued New Business New Long-term Funding1 H1 2012 EUR billions H1 2013 X.X Avg. maturity (yrs) 5.0 5 4 3.7 Funding 3.0 3.1 3 Unsecured 2.0 2 0.6 1 Cover Pools Pfandbriefe 6.5 6.5 3.1 4.7 5.9 5.8 0 Pfandbriefe Unsecured Total Jan 13 Feb 13 Mar 13 Apr 1
Slide 15: Cover Pools
Cover Pools Financials Over-collateralisation in both cover pools provides comfortable cover for outstanding Pfandbriefe New Business Mortgage Cover Pool: Total Cover Funds Public Sector Cover Pool: Total Cover Funds EUR billions (nominal) EUR billions (nominal) 48.1% 21.1% 42.0% 41.4% 18.5% 12.1% 2
Slide 16: Portfolio development
Portfolio Financials Portfolio development reflects reduced non-lending exposure and maturities New Business Total Portfolio Total Problem Loans EUR billions (EaD)1 EUR billions (EaD) -2% 31% 31% 31% 75.3 68.9 67.2 12.5 1.1 0.3 0.2 7.5 0.2 6.7 1.0 0.9 Funding <0.1 <0.1 <0.1 38.9 37.8 37.3 1.1 0.9 0.
Slide 17: Summary & Outlook
Summary & Outlook Financials New Business Earnings development in line with full-year pre-tax profit target of EUR >100 mn ̶ Stable revenues from loan business ̶ Only small (net) additions to loan-loss provisions – planning based on normalised provisioning level Funding ̶ Positive effect from deriva
Slide 18: Appendix
Appendix
Slide 19: Income Statement (IFRS)
Financials Financials Income Statement New Business Income Statement (IFRS) EUR millions FY 2010 FY 2011 Q1 2012 Q2 2012 H1 2012 Q3 2012 Q4 2012 FY 2012 Q1 2013 Q2 2013 H1 2013 Operating revenues 652 526 103 120 223 130 114 467 101 113 214 Net interest and similar 600 371 76 74 150 72 74 296 79 74 1
Slide 20: Basel III Capital and Liquidity Ratios
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 21: 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 H1 2013: EUR millions (Commitments, incl. extensions >1 yr) 1,316 Funding 513 385 307 275 Cover Pools 16 4 2 Germany France CEE
Slide 22: 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 23: 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 30.0 30/06/2013 / Total: EUR 67.2 bn1 Funding 7.6 7.8 6.3 6.1 4.6 4.3 3.9 3.7 3.8 3.7 3.4 3.3 2.2 1.7 1.8 2.0 1.6 1.5 Cover Pools 1.1 0.9 1.1 1.0 0.7 0.5 0.5 0.5 0.1
Slide 24: REF: Portfolio by Regions
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by Regions EUR billions (EaD) 12.1 12.1 31/12/2012 / Total: EUR 23.7 bn 30/06/2013 / Total: EUR 23.1 bn Funding 3.4 3.2 2.2 2.2 2.2 2.0 1.6 1.6 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 25: 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 30/06/2013 / Total: EUR 23.1 bn 6.1 6.1 5.0 5.0 Funding 2.8 1.6 1.0 1.2 1.0 0.9 0.3 Cover Pools 0.3 Office Retail/ Residential Warehouse/ Mixed use
Slide 26: REF: Portfolio by Loan Types
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by Loan Types EUR billions (EaD) 22.3 21.5 31/12/2012 / Total: EUR 23.7 bn 30/06/2013 / Total: EUR 23.1 bn Funding Cover Pools 0.6 0.9 0.7 0.5 <0.1 0.2 Investment loans Development loans Customer derivatives Other 31/12/2012
Slide 27: REF: Portfolio by EL Classes
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by EL Classes EUR billions (EaD) 4.9 4.7 31/12/2012 / Total: EUR 23.7 bn 30/06/2013 / Total: EUR 23.1 bn 3.9 3.4 3.4 3.5 3.3 EL class S&P rating scale Funding 1-5 AAA to A- 6-8 BBB+ to BBB- 2.5 9-11 BB+ to BB- 2.0 2.0 12-14 B
Slide 28: PSF: Portfolio by Region
Portfolio Financials Public Sector Finance (PSF) New Business PSF: Portfolio by Region EUR billions (EaD)1 13.8 13.1 31/12/2012 / Total: EUR 38.9 bn 30/06/2013 / Total: EUR 37.3 bn Funding 5.9 5.9 5.0 5.1 4.1 3.8 3.1 3.0 1.6 1.5 1.6 1.5 1.4 1.1 Cover Pools 0.5 0.5 0.5 0.4 0.5 0.3 0.4 0.5 0.2 0.2 0.1
Slide 29: PSF: Portfolio by Counterparty Type
Portfolio Financials Public Sector Finance (PSF) New Business PSF: Portfolio by Counterparty Type EUR billions (EaD)1 10.9 10.7 31/12/2012 / Total: EUR 38.9 bn 30/06/2013 / Total: EUR 37.3 bn 8.4 8.3 8.3 8.2 8.0 7.2 Funding 3.1 3.1 Cover Pools Local Authorities Sovereign Public Sector Entities2 Fina
Slide 30: PSF: Portfolio by PD Class
Portfolio Financials Public Sector Finance (PSF) New Business PSF: Portfolio by PD Class EUR billions (EaD)1 28.0 26.6 31/12/2012 / Total: EUR 38.9 bn 30/06/2013 / Total: EUR 37.3 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 31: Total Problem Loans
Portfolio Financials Total problem loans New Business Total Problem Loans Total Problem Loans: Regions EUR billions (EaD) (EaD) 93 EUR 1.1 bn EUR 1.0 bn EUR 0.9 bn 88 86 100% 18% 22% 21% Italy Japan 1.1 Hungary Funding <0.1 1.0 0.9 33% <0.1 36% 41% <0.1 Austria Benelux 1.1 Spain 0.9 0.9 49% 42% 38%
Slide 32: 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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