Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Q2 2012 Earnings Presentation
40 slides from Deutsche Pfandbriefbank's earnings presentation, Aug 14, 2012
Slide 1: Results Q2 2012: pbb on track with pre-tax profit of EUR 30 mio
Analyst/Investor Presentation Results Q2 2012: pbb on track with pre-tax profit of EUR 30 mio Results Q2 2012, 14th August 2012
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 Financials New business pbb on track with pre-tax profit of EUR 30 mio in Q2 2012 (Q1: EUR 21 mio) – half-year pre-tax profit of EUR 51 mio in line with expectations Selective new business of EUR 1.5 bn (incl. extensions >1 year) in H1 2012, given a restrictive Funding approach in the lig
Slide 4: Income statement
Income statement Financials pbb on track with pre-tax profit of EUR 30 mio in Q2 2012 New business Income statement (IFRS) EUR millions Net interest income affected by Q4 2011 Q1 2012 Q2 2012 H1 2012 a conservative liquidity strategy Operating revenues 104 103 120 223 as well as a reduced nominal as
Slide 5: Balance sheet
Balance sheet Financials Operating balance sheet size of EUR 101 bn well below year-end limit of EUR 105 bn required by the EU New business Total assets (IFRS) EUR billions -42% 187 Counter-effects resulting from the asset transfer to FMS-WM -5% +1% Operating balance sheet Funding 74 109 104 105 8 5
Slide 6: Capitalisation
Capitalisation Financials Tier I ratio at 17.1% New business Pro-forma Risk-Weighted Assets (RWA) The regulatory capital ratios stated are calculated on an EUR billions unaudited pro-forma basis. Deutsche Pfandbriefbank AG is according to the ‘Waiver Rule’ regulated in Sec. 2a KWG (German Banking Ac
Slide 7: New business
New business Financials Selective new business of EUR 1.5 bn in H1 2012 – new business volumes expected to accelerate in the second half of the year New business Total new business (incl. extensions >1 yr) EUR billions 0.6 Reduction of deal pipeline and restrictive new PIF 0.1 business approach in t
Slide 8: Real Estate Finance: selective new business at higher margins and lower LTVs
New business Financials Real Estate Finance (REF): Selective new business at substantially higher margins and lower LTVs New business New business: REF New commitments by region (H1 2012) EUR billions Extensions >1 year Scandinavia Spain1 6.3 UK 11% 4% 28% France 13% Funding 3.5 3.1 1.4 17% 1.2 27%
Slide 9: Public Investment Finance: new business focus on Germany and France
New business Financials Public Investment Finance (PIF): New business focus currently on Germany and France New business New business: PIF New commitments by region (H1 2012) EUR billions 1.7 Germany 33% Funding 1.0 67% France 0.3 Cover pools FY 20101 FY 20111 H1 2012 by counterparty type (H1 2012)
Slide 10: Funding
Funding Financials Receptiveness of funding markets better than initially expected New business New publicly issued Mortgage Pfandbriefe in 2012 Total long-term funding volume of EUR 3.7 bn3 Launch Issue/reoffer in H1 2012 with an average maturity of more WKN Maturity Volume Spread1 Coupon date pric
Slide 11: Cover pools: second largest Pfandbrief issuer
Cover pools Financials With an outstanding volume of EUR 45 bn, pbb is second largest Pfandbrief issuer New business Largest Pfandbrief issuers 30/06/2012: EUR billions (outstanding, nominal) Mortgage Pfandbriefe 68 Public Sector Pfandbriefe #2 45 Funding 43 34 34 Cover pools Eurohypo pbb LBBW Bayer
Slide 12: Over-collateralisation of cover pools
Cover pools Financials Over-collateralisation provides comfortable cover for Pfandbriefe outstanding New business Mortgage cover pool: Total cover funds Public Sector cover pool: Total cover funds EUR billions (nominal) EUR billions (nominal) Over-Collateralisation (OC) Over-Collateralisation (OC) P
Slide 13: Total portfolio
Total portfolio Financials Future portfolio growth in strategic business areas expected to largely compensate mid-term for the run-off of Public Budget Finance New business Total portfolio EUR billions (EaD)1,2 82 81 C&A 9 12 Cons. & Adjust. C&A C&A VP 2 1 Value Portfolio VP Funding Public Budget No
Slide 14: Exposure in selected countries
Exposure in selected countries Financials Exposure to Portugal and Italy considerably reduced due to active portfolio management and maturities since beginning of the year New business Non-REF: Sovereign exposure REF: Real Estate exposure EUR billions (EaD)1 EUR billions (EaD)1 12/2011 12/2011 06/20
Slide 15: Problem loans
Problem loans Financials Total problem loans up, but adequately covered by loan-loss provisions New business Total problem loans Non-REF REF problem loans Workout loans1 EUR billions (EaD) EUR billions (EaD) REF Restructuring loans2 1.6 1.5 1.4 1.3 0.1 1.3 1.3 0.0 1.2 0.1 1.2 0.1 0.0 0.0 Funding 0.1
Slide 16: Summary and outlook
Summary and outlook Financials New business Pre-tax profit of EUR 51 mio in H1 2012 in line with expectations – full-year target range of EUR 100-140 mio confirmed In H1 2012, restrictive new business approach Funding However, receptiveness of funding markets in H1 2012 better than initially expecte
Slide 17: Appendix
Appendix Results Q2 2012, 14th August 2012
Slide 18: Group structure
Group structure Financials pbb being the strategic core bank within HRE Group New business Federal Republic of Germany SoFFin 100% Funding Hypo Real Estate Holding AG Cover pools 100% 100% Deutsche DEPFA Bank plc1 Pfandbriefbank AG (Dublin) Portfolio (Unterschleissheim) Issuer of publicly traded cap
Slide 19: Business model and strategy
Business model and strategy Financials Focus on Real Estate and Public Investment Finance – Public Budget Finance business will be run-off over time on balance sheet New business Public Sector Finance (PSF) Real Estate Finance Funding (REF) Public Investment Finance1 Public Budget Finance2 Cover poo
Slide 20: Regional focus on Germany and other selected European countries
New business Financials Regional focus on Germany and other selected European countries – pbb benefits from long-standing experience and franchise within strategic markets New business Real Estate Finance (REF) Public Investment Finance (PIF) Core countries with sales locations Potential new locatio
Slide 21: Scope of strategic business activities: Real Estate Finance
Business model and strategy Financials Scope of strategic business activities: Real Estate Finance (REF) New business Real Estate Finance (REF) Professional national and international real estate investors (e.g. Real Estate companies, Institutional Investors, Real Clients Estate Funds) Professional
Slide 22: Scope of strategic business activities: Public Investment Finance
Business model and strategy Financials Scope of strategic business activities: Public Investment Finance (PIF) New business Public Investment Finance (PIF) Pfandbrief eligible public borrowers (specific purpose with an asset and/or investment character) Clients Pfandbrief eligible publicly guarantee
Slide 23: Income statement
Financials Financials Income statement New business Income statement (IFRS) EUR millions FY 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 FY 2011 Q1 2012 Q2 2012 H1 2012 Operating revenues 652 131 162 129 104 526 103 120 223 Net interest and similar income 600 97 95 101 78 371 76 74 150 Net commission income
Slide 24: Balance sheet
Financials Financials Balance sheet New business Total assets (IFRS) Total liabilities and equity (IFRS) EUR billions -42% EUR billions -42% 187 187 Trading assets 16 Trading liabilities 16 -4% -4% Liabilities to other banks 80 Funding Loans and advances 109 and customers 105 109 105 (Public Sector,
Slide 25: Funding
Funding Financials pbb is a frequent Pfandbrief issuer with liquid benchmark transactions as well as tailor-made private placements New business Pfandbrief Unsecured Others Mortgage Money Market Bearer bonds Products Pfandbrief (Commercial Paper) Public Sector Promissory notes Deposits Pfandbrief (S
Slide 26: Real Estate portfolio: exposure by region
Portfolio Financials Real Estate portfolio New business Exposure by region EUR billions (EaD) 13.1 12.4 31/12/2011 / Total: EUR 25.2 bn 30/06/2012 / Total: EUR 24.6 bn Funding 3.0 3.3 2.6 2.6 2.2 2.1 1.7 1.6 Cover pools 0.8 0.8 0.6 0.5 0.5 0.6 0.3 0.2 0.2 0.2 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.3
Slide 27: Real Estate portfolio: exposure by loan type
Portfolio Financials Real Estate portfolio New business Exposure by loan type EUR billions (EaD) 23.4 22.9 31/12/2011 / Total: EUR 25.2 bn 30/06/2012 / Total: EUR 24.6 bn Funding Cover pools 1.0 1.0 0.8 0.7 0.1 0.1 Investment loans Development loans Customer derivatives Others 31/12/2011 30/06/2012
Slide 28: Real Estate portfolio: exposure by property type
Portfolio Financials Real Estate portfolio New business Exposure by property type EUR billions (EaD) 8.9 8.5 31/12/2011 / Total: EUR 25.2 bn 7.1 7.0 30/06/2012 / Total: EUR 24.6 bn Funding 5.2 5.0 2.4 2.6 1.4 1.2 Cover pools 0.3 0.3 Office Retail/ Residential Industrial/ Hotel/ Others Shopping Logis
Slide 29: Real Estate portfolio: exposure by EL classes
Portfolio Financials Real Estate portfolio New business Exposure by EL classes EL class S&P rating scale EUR billions (EaD) 1-5 AAA to A- 6-8 BBB+ to BBB- 4.8 9-11 BB+ to BB- 31/12/2011 / Total: EUR 25.2 bn 4.0 12-14 B+ to B- 3.9 3.8 30/06/2012 / Total: EUR 24.6 bn 15-18 CCC+ and below 3.5 3.3 3.1 F
Slide 30: Non-Real Estate portfolio: exposure by region
Portfolio Financials Non-Real Estate portfolio New business Exposure by region EUR billions (EaD)1,2 25.8 24.1 31/12/2011 / Total: EUR 56.8 bn 30/06/2012 / Total: EUR 56.3 bn Funding 6.9 6.4 5.2 5.5 5.0 4.1 4.5 4.5 2.1 2.3 Cover pools 2.0 1.6 1.8 1.8 1.0 0.9 1.0 0.7 1.0 0.6 0.8 0.9 0.6 0.6 0.3 0.3 0
Slide 31: Non-Real Estate portfolio: exposure by counterparty type
Portfolio Financials Non-Real Estate portfolio New business Exposure by counterparty type EUR billions (EaD)1,2 18.3 16.3 31/12/2011 / Total: EUR 56.8 bn 15.3 30/06/2012 / Total: EUR 56.3 bn 14.1 12.0 11.8 Funding 11.0 10.1 Cover pools 2.5 1.3 0.0 0.3 Local Authorities Sovereign3,4 Financial Institu
Slide 32: Non-Real Estate portfolio: exposure by PD class
Portfolio Financials Non-Real Estate portfolio New business Exposure by PD class PD class S&P rating scale EUR billions (EaD)1,2 1-7 AAA to A- 52.1 8-10 BBB+ to BBB- 11-13 BB+ to BB- 45.5 31/12/2011 / Total: EUR 56.8 bn 14-22 B+ to B- 30/06/2012 / Total: EUR 56.3 bn 23-27 CCC+ to CCC- 28-30 D Fundin
Slide 33: Non-REF: exposure in selected countries by counterparty types
Portfolio Financials Non-Real Estate portfolio New business Non-REF: Exposure in selected countries by counterparty types EUR billions (EaD)1 5.0 4.5 4.5 4.1 Funding 3.0 2.2 2.2 2.2 2.0 1.6 0.3 0.2 0.2 1.2 1.7 1.7 0.4 0.3 Cover pools 0.4 1.9 0.1 0.1 0.9 0.4 0.2 0.6 0.0 0.0 0.7 0.0 0.0 0.4 0.1 0.1 0.
Slide 34: Mortgage cover pool
Cover pools Financials Mortgage cover pool New business Cover funds by region Mortgage cover pool (Nominal) 31/12/2011 30/06/2012 EUR billions (Nominal) Pfandbriefe outstanding EUR 14.7 bn EUR 13.7 bn 10.5 Cover funds EUR 21.5 bn EUR 19.7 bn 10.0 31/12/2011 / Total: EUR 18.9 bn1 Over-collateralisati
Slide 35: Mortgage cover pool: cover funds by property type
Cover pools Financials Mortgage cover pool New business Cover funds by property type EUR billions (Nominal) 7.2 7.2 31/12/2011 / Total: EUR 18.9 bn1 30/06/2012 / Total: EUR 18.8 bn1 4.8 4.9 Funding 4.4 4.2 2.5 2.5 Cover pools Office Retail/Shopping Residential Others2 31/12/2011 30/06/2012 Portfolio
Slide 36: Mortgage cover pool: maturity profile
Cover pools Financials Mortgage cover pool New business Maturity profile1,2 31/12/2011: EUR millions (Nominal) 6,000 Pfandbriefe outstanding / Total: EUR 14.7 bn 5,000 Cover funds / Total: EUR 21.5 bn Funding 4,000 3,000 2,000 Cover pools 1,000 0 ≤1y >1-2y >2-3y >3-4y >4-5y >5-10y >10y 30/06/2012: E
Slide 37: Public Sector cover pool quality considerably improved
Cover pools Financials Public Sector cover pool: Cover pool quality considerably improved due to active cover pool management New business Cover funds by region Public Sector cover pool (Nominal) 31/12/2011 30/06/2012 EUR billions (Nominal) Pfandbriefe outstanding EUR 33.7 bn EUR 31.5 bn Cover funds
Slide 38: Public Sector cover pool: cover funds by counterparty type
Cover pools Financials Public Sector cover pool New business Cover funds by counterparty type EUR billions (Nominal) 13.9 13.0 12.4 31/12/2011 / Total: EUR 35.7 bn1,2 11.7 30/06/2012 / Total: EUR 35.5 bn1,2 8.8 Funding 8.4 Cover pools 1.6 1.5 Regional authorities Central governments Local authoritie
Slide 39: Public Sector cover pool: maturity profile
Cover pools Financials Public Sector cover pool New business Maturity profile1,2 31/12/2011: EUR millions (Nominal) 12,000 Pfandbriefe outstanding / Total: EUR 33.7 bn 10,000 Cover funds / Total: EUR 37.4 bn Funding 8,000 6,000 4,000 Cover pools 2,000 0 ≤1y >1-2y >2-3y >3-4y >4-5y >5-10y >10y 30/06/
Slide 40: 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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