Deutsche Pfandbriefbank AG · XETR:PBB
Deutsche Pfandbriefbank — Debt Investor Presentation (August 2025)
45 slides from Deutsche Pfandbriefbank's debt investor presentation, Aug 13, 2025
Slide 1: Debt Investor Update Results Q2/H1 2025
DEBT INVESTOR UPDATE Results Q2/H1 2025 13 August 2025 Results H1/25 (IFRS, pbb Group, unaudited, but reviewed), 13 August 2025 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 Strategy 2027 accelerated Acquisition of Real Estate investment manager Deutsche Investment Group with € ~ 3 bn AuM Full focus on Europe with new business RoTE of 10% US exit leads to one-off US risk charges of € -314 mn Solid capitalisation retained CET1 ratio of 15.3% incl
Slide 4: Strategy 2027: Progress
STRATEGY 2027 Transformation accelerated - Essential progress in all Pillars RE FINANCE RE INVESTMENT LEANER SOLUTIONS SOLUTIONS ORGANISATION Pillars Diversification pbb invest Enhanced customer focus and and through improved cooperation increase in profitability Originate & Cooperate across all div
Slide 5: Real Estate Finance Solutions
REAL ESTATE FINANCE SOLUTIONS pbb to become a truly European player Growth of new business in Europe accelerates; GIM at high level of New business volume1 US portfolio ~240 bp maintained and expected to have peaked; RoTE of new (€ bn) (€ bn, EaD) business above expectation; on track to achieve ta
Slide 6: US exit with significant one-off charges
REAL ESTATE FINANCE SOLUTIONS US exit with significant one-off charges – however, CET1 ratio impact limited to -40 bp Q2/25 performance of US performing book solid; LTV stable at 67%, exposure US risk charges US coverage ratios1 at risk reduced by 19% q-o-q 03/25 06/25 Portfolio now marked at ex
Slide 7: pbb acquires Deutsche Investment Group
REAL ESTATE INVESTMENT SOLUTIONS pbb acquires Deutsche Investment Group Deutsche Investment Group provides full value chain (360° Key Facts Strategic presence approach), combining RE Investment / Asset Management with (2024) integrated property & facility management • AuM € 3 bn1 • Berlin & Hamburg
Slide 8: Deutsche Investment Group – excellent strategic fit
REAL ESTATE INVESTMENT SOLUTIONS Deutsche Investment Group – excellent strategic fit and cornerstone for Strategy 2027 Deutsche Investment Group – essential contribution to Strategy Fee Income1 Fee Income CAGR1 2027 targets • € 3 bn AuM3 materially contribute to pbb invest target of € 4-6 bn AuM in
Slide 9: Agenda
AGENDA 1. Operating and Financial Overview 2. Portfolio Quality 3. Capital and Funding 4. Appendix Results H1/25 (IFRS, pbb Group, unaudited, but reviewed), 13 August 2025 9
Slide 10: Operating & Financial Overview: Focus on profitability
OPERATING & FINANCIAL OVERVIEW Focus on profitability REF new business Selective new business with REF portfolio € bn (financing volume) Portfolio already significantly € bn (commitments, incl. extensions > 1 yr.) strict focus on profitability de-risked (esp. US and ~240bp New business volume
Slide 11: Operating performance impacted by US risk charges
OPERATING & FINANCIAL OVERVIEW Operating performance impacted by US risk charges Operating income € mn (IFRS) Operating income impacted by General admin. Expenses € mn (IFRS) After finalisation of IT one-off US fair value1 risk transformation in 2024, GAE NII/NCI Realisation & other income Perso
Slide 12: Operating income ex US risk charges stable q-o-q
OPERATING & FINANCIAL OVERVIEW Operating income ex US risk charges stable q-o-q, operating expenses remain well managed Operating income € mn (IFRS) NII/NCI Realisation income Other income Operating expenses € mn (IFRS) personnel non-personnel Write downs 61% 70% CIR2 47% 47% 54% 52% (adj.1) 132 147
Slide 13: Risk provisioning and the US portfolio exit
OPERATING & FINANCIAL OVERVIEW Risk provisioning defined by decision to exit the US portfolio which is now marked at expected exit costs Net income from risk provisioning € mn (IFRS) Stage 1&21 Stage 3 Other2 H1/25: € -323 mn H1/24: € -103 mn H2/24: € -67mn H1/25 adjusted3: € -40 mn -10 7 22 -5 5 -1
Slide 14: US NPL portfolio now covered by ~33%
OPERATING & FINANCIAL OVERVIEW US NPL portfolio now covered by ~33% Balance sheet loss allowances € mn Stage 1&2 € mn (IFRS, reported) Stage 1 Stage 2 Stage 3 Other Other Germany UK 15 13 Germany 26 UK 8 787 8 30 29 543 564 156 504 39 43 29 03/25 06/25 93 81 81 USA € 124 mn € 185 mn 602 411 440 394
Slide 15: Agenda
AGENDA 1. Operating and Financial Overview 2. Portfolio Quality 3. Capital and Funding 4. Appendix Results H1/25 (IFRS, pbb Group, unaudited, but reviewed), 13 August 2025 15
Slide 16: Bottoming out of Real Estate markets
REF PORTFOLIO PERFORMING Bottoming out of Real Estate markets also reflects in pbb’s portfolio REF Portfolio € bn (EaD, Basel III, 2025: Basel IV) Irrespective of the risk charges booked for the planned US exit, the underlying 56% 56% 56% quality of the portfolio stabilised further showing continu
Slide 17: Portfolio quality remains solid
REF PORTFOLIO PERFORMING Portfolio quality remains solid Performing Portfolio € bn (EaD, Basel III, 2025: Basel IV) Performing REF portfolio reduced by € 1.1 bn in H1/25 • Repayments & others (€ 0.8 bn, incl. neg. USD-effect of € 0.5 bn) 29.0 • Transfer to NPL (€ 0.3 bn) 27.8 26.7 Portfolio qual
Slide 18: Disproportionately large share of 45% US loans
REF PORTFOLIO NPL Disproportionately large share of 45% US loans NPL Portfolio € mn (EaD, Basel III, 2025: Basel IV) Europe USA Increase of NPL portfolio of € 71 mn in Q2/25 mainly driven by US loans, partially compensated by FX-effects and reductions 1,903 1,887 -66 1,958 +57 -33 -40 +240 -103
Slide 19: Focus: Development portfolio
FOCUS: DEVELOPMENT PORTFOLIO Volume managed down Portfolio € bn Phase 30/06/2025 Improved risk profile in development portfolio (EaD, Basel III, 2025: Basel IV) (commitments, Basel IV) • Portfolio reduced by € 0.5 bn ytd. Performing -31% Non-performing • 10 loans (Q2/25: 5 loans) repaid/transferre
Slide 20: Focus: European office portfolio
FOCUS: EUROPEAN OFFICE PORTFOLIO Further stabilisation expected based on stable demand and below-average supply pipeline Portfolio € bn (EaD, Basel III, 2025: Basel IV) Office Europe portfolio reduced by € 0.3 bn in H1/25 through • Repayments & others (€ 0.3 bn, incl. neg. FX-effect of € 0.1 bn (G
Slide 21: Agenda
AGENDA 1. Operating and Financial Overview 2. Portfolio Quality 3. Capital and Funding 4. Appendix Results H1/25 (IFRS, pbb Group, unaudited, but reviewed), 13 August 2025 21
Slide 22: Solid capitalisation maintained
CAPITAL Solid capitalisation maintained – 40 bp CET 1 ratio reduction due to US risk charges Basel IV: capital and leverage ratios (IFRS) Solid capitalisation enables strategic transformation • US portfolio marked at expected exit costs Transitional period • Capital impact from acquisition of ≤30
Slide 23: Further optimised capital structure – successful T2 issuance
CAPITAL Further optimised capital structure – successful T2 issuance Own funds ratio1 (IFRS) CET 1 Tier 1 Tier 2 Successful return to the Tier 2 market with a € 300 mn new issue – at the same time, tender of approx. € 250 mn legacy Tier 2, which had amortised down to ≤50% regulatory capital recogn
Slide 24: 80% of the funding plan 2025 already executed
FUNDING AND LIQUIDITY 80% of the funding plan 2025 already executed – secondary spreads tighter New long-term funding1 Private placements Benchmark issuances Diversified Funding Base € bn 30/06/2025: € bn, nominal values 2023: € 3.3 bn 2024: € 2.5 bn H1/25: € 1.6 bn Mortgage Pfandbriefe Spread 39 20
Slide 25: Resilient and balanced funding strategy
FUNDING AND LIQUIDITY Resilient and balanced funding strategy – focus on efficient funding Resilient and balanced funding Balanced Funding Retail Deposits Pfandbriefe as dominant and highly resilient source of funding Balanced proportion of wholesale unsecured funding and retail deposits Broad
Slide 26: Diversified funding base
FUNDING AND LIQUIDITY Diversified funding base Unsecured Funding Retail deposits – development and maturity profile3 € bn Wholesale Unsecured Retail Deposits Call money 1-3Y term 4-5Y term 6-10Y term WAL WAL WAL 3.7 yrs 3.7 yrs 40% 3.2 yrs 48% 50% 7.6 7.5 6.6 0.6 0.7 0.9 4.8 4.6 3.8 91% 60% term 52%
Slide 27: Mortgage Cover Pool
MORTGAGE COVER POOL Diversification by countries and property types Mortgage Cover Pool Spain 1.9% Switzerland 0.2% Key metrics Mortgage cover pool (nominal) 30/06/2025 Austria 1.4% Italy 0.8% Benelux Pfandbriefe outstanding € 15.7 bn 4% Other Nordic countries Cover funds € 18.3 bn 7% 23% Over-colla
Slide 28: Own Funds and Eligible Liabilities exceed requirements
FUNDING Own Funds and Eligible Liabilities exceed regulatory requirements € bn SP5 SNP Other Subordinated Tier 1 CET 11 Buffer for Senior Preferred (SP) investors due to high volume of capital instruments and Senior MREL2 Composition of Rundown Non-Preferred (SNP) liabilities (30/06/2025) Liabilit
Slide 29: Mandated Ratings
MANDATED RATINGS Bank Ratings S&P Long-term BBB- Outlook Stable Short-term A-3 1 Stand-alone Rating bb+ Long Term Debt Ratings “Preferred” Senior Unsecured Debt2 BBB- “Non-preferred” Senior Unsecured Debt3 BB- Subordinated Debt B+ Pfandbrief Ratings Moody’s Mortgage Pfandbriefe Aa1 Public Sector Pfa
Slide 30: Appendix
APPENDIX Results H1/25 (IFRS, pbb Group, unaudited, but reviewed), 13 August 2025 30
Slide 31: 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 32: Key Figures
KEY FIGURES pbb Group Income statement (€ mn) 2023 Q1/24 Q2/24 Q3/24 Q4/24 2024 Q1/25 Q2/25 H1/25 Net interest income 482 125 121 113 106 465 107 104 211 Net fee and commission income 3 1 2 0 2 5 2 2 4 Net income from fair value measurement 0 -3 -1 8 -7 -3 3 -19 -16 Net income from realisations 85 2
Slide 33: REF New Business
REF NEW BUSINESS Selective new business volume with margins on elevated level Volume of REF portfolio in € bn REF portfolio further de-risked/reduced q-o-q and ytd., especially US and financing volume German development portfolios Avg. portfolio margin further up New business volume of € 2.6 b
Slide 34: Diversification supports management of the cycle
REF NEW BUSINESS Diversification supports management of the cycle As of 30/06/25 Regions Property types Mixed use/ Other Hotel 1% other € 2.6 bn 14% Logistics/ 4% Germany storage Nordics 34% 22% New business 11% Commitments, 51% Office incl. extensions > 1 year 23% 15% 11% Retail CEE France 7% 6% US
Slide 35: Focus: USA Performing
FOCUS: USA PERFORMING Exposure at risk 93% covered by existing stage 1&2 LLP Performing Portfolio € bn (EaD, Basel III, 2025: Basel IV) Performing US portfolio reduced by € 0.5 bn in H1/25 through • Repayments & others (€ 0.5 bn USD-effect) 3.5 3.3 • Transfer to NPL (€ <0.1 bn) 2.8 Full focus on
Slide 36: Focus: USA NPL
FOCUS: USA NPL US NPL portfolio now covered by ~37% Non-Performing Portfolio € mn (EaD, Basel III, 2025: Basel IV) Development of NPL portfolio affected by preparations for exit from US business • Addition of 2 US loans (office € 113 mn, residential € 85 mn) 878 -91 879 • Reduction of 1 US office
Slide 37: Focus: Germany Performing
FOCUS: GERMANY PERFORMING Well diversified, high quality portfolio Performing Portfolio € bn (EaD, Basel III, 2025: Basel IV) Performing German portfolio reduced by € 0.4 bn in H1/25 through • Repayments & others (€ 0.4 bn) 13.1 • Transfer to NPL (1 German office loan € 57 mn in Q1/25) 12.6 12.2
Slide 38: Focus: Office Performing
FOCUS: OFFICE PERFORMING Exposure at risk now covered by 33% Performing Portfolio € bn (EaD, Basel III, 2025: Basel IV) Performing Office portfolio reduced by € 0.8 bn in H1/25 through • Repayments & others (€ 0.6 bn, incl. neg. USD-effect of € 0.5 bn) 14.6 • Transfer to NPL (€ 0.2 bn) 13.9 13.1
Slide 39: Focus: Office NPL
FOCUS: OFFICE NPL Office NPL portfolio now covered by ~30% Non-Performing Portfolio € mn (EaD, Basel III, 2025: Basel IV) Slight increase of € 4 mn in Office NPL portfolio Q2/25 with 2 additions, 1 reduction and FX/EaD-effects • Addition of 2 European office loans (€ 155 mn), stage 3 LLP € 17 mn
Slide 40: NPL Portfolio
NPL PORTFOLIO Active restructuring/work-out ongoing Geographical breakdown € mn (EaD, Basel III, 2025: Basel IV) Breakdown by property type € mn (EaD, Basel III, 2025: Basel IV) 1,903 1,958 1,903 1,958 231 245 1,602 213 1,602 210 156 267 350 Others Others & Mixed Use 230 199 263 France 655 698 Hotel
Slide 41: Portfolio: Real Estate Finance (REF)
PORTFOLIO Real Estate Finance (REF) Regions Property types Other 1% Other 2% Hotel 3% Mixed use 1% Hotel 2% Mixed use 1% Austria 1% Other Europe Austria 1% Other Europe Retail Retail Czech Republic 2% 10% Czech Republic 2% 10% Sweden 4% Sweden 4% 10% 10% Poland Poland 7% 6% 45% Germany 45% Germany R
Slide 42: REF Portfolio: LTV development
REF PORTFOLIO LTV development reflects market environment LTV – Regions LTV – Property types (€ bn, commitments, Basel III, 2025: Basel IV) 1 (€ bn, commitments, Basel III, 2025: Basel IV) 1 12/24 06/25 12/24 03/25 06/25 03/25 Avg. LTV Avg. LTV 12/24: 56% / 03/25: 56% / 06/25: 56% 12/24: 56% / 03/25
Slide 43: Portfolio: Non-Core Unit (PIF & VP)
PORTFOLIO Non-Core Unit (PIF & VP) Regions Borrower classification1 UK 1% Other Rest of World 2% UK 1% Other Rest of World 1% Supranational 1% Corporation 1% Supranational 1% Corporation 1% Other Europe 3% Finland <1% Other Europe 4% Finland <1% Financial Institution 3% PSE (related) <1% Financial I
Slide 44: Pfandbrief Cover Pool: ISC and Mortgage Lending Value
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 45: Contact Details
CONTACT DETAILS Goetz Michl Silvio Bardeschi Head of Funding & Debt Investor Relations Funding & Debt Investor Relations +49 (0)6196 9990 2931 +49 (0)6196 9990 2934 goetz.michl@pfandbriefbank.com silvio.bardeschi@pfandbriefbank.com Website www.pfandbriefbank.com/investor-relations.html © Deutsche Pf
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