Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Q1 2014 Earnings Presentation
35 slides from Deutsche Pfandbriefbank's earnings presentation, Jun 2, 2014
Slide 1: Unaudited Results Q1 2014: Strong first quarter with pre-tax profit of EUR 38 mn
Unaudited Results Q1 2014: Strong first quarter with pre-tax profit of EUR 38 mn Andreas Arndt, CFO Unaudited Results Q1 2014, 2nd June 2014
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: Key messages
Key messages Key messages Overview Overall economic environment and European property markets remain intact New business origination successfully running Markets Overall increasing competition – however, new business margins still well P/L above average portfolio margin Pre-tax profit of EUR 38 mn a
Slide 4: Overview
Key messages Overview Overview Income Pre-tax profit up 31% y-o-y to EUR 38 mn (Q1/13: EUR 29 mn) statement PBT EUR 38 mn − Net interest income strongly up by 26% (adjusted for one-off effects) NII EUR 89 mn − Net release of loan-loss provisions LLPs EUR 5 mn P/L − Operating cost base significantly
Slide 5: Income Statement: Further increased profitability and reduced cost base
Key messages Income Statement Further increased profitability of the portfolio and significantly reduced operating cost base Pre-tax profit Key drivers Q1/14 vs. Q1/13: Overview EUR millions +31% 62 Further increased profitability of the portfolio 31 43 38 29 Considerably reduced operating cost base
Slide 6: Net interest income strongly up by 26%
Key messages Income Statement Net interest income strongly up by 26% (adjusted for one-off effects) Income/expenses from lending business Overview EUR millions Q1/13 Q1/14 Key drivers Q1/14 vs. Q1/13: Net interest and similar 79 89 NII strongly up income – Avg. new business margins remain higher tha
Slide 7: Operating cost base significantly reduced by 18%
Key messages Income Statement Operating cost base significantly reduced by 18% following the termination of the FMS-WM servicing by end of Sep 2013 Income/expenses from further business activities Overview EUR millions Q1/13 Q1/14 Key drivers Q1/14 vs. Q1/13: Balance of other 32 13 No fee income fro
Slide 8: Income/expenses from financial instruments driven by derivative valuation
Key messages Income Statement Income/expenses from financial instruments preliminary driven by derivative valuation Income/expenses from financial instruments Overview EUR millions Q1/13 Q1/14 Key drivers Q1/14 vs. Q1/13: Net trading income -12 -9 Net trading income driven by derivative valuation Ne
Slide 9: Capital: solid capital ratios under Basel III
Key messages Capital The regulatory capital ratios stated are calculated on an pbb with solid capital ratios under Basel III unaudited pro-forma basis. According to the ‘Waiver Rule’ regulated in Article 7 CRR, Deutsche Pfandbriefbank AG is exempt from calculating the equity capital ratio and the co
Slide 10: Balance Sheet: total assets slightly up to EUR 75.3 bn
Key messages Balance Sheet Total assets slightly up to EUR 75.3 bn (12/13: EUR 74.6 bn1) – sound balance sheet structure with well matched maturity profile Balance Sheet Overview 31/03/2014: EUR billions 75.3 75.3 Other assets2 Other liabilities2 1.2 1.6 P/L Hedging derivatives (pos. FV) 6.7 6.3 Hed
Slide 11: Funding: new long-term funding of EUR 2.2 bn
Key messages Funding New long-term funding of EUR 2.2 bn with two public benchmark transactions in line with plan Private Placements Unsecured (avg. maturity) New long-term Funding Overview EUR billions1 EUR billions1 Pfandbriefe (avg. maturity) 3 1.2 (4.8 yrs) 1.2 (8.4 yrs) 2 0.6 (5.9 yrs) 0.5 (4.8
Slide 12: Funding: comfortable over-collateralisation in both cover pools
Key messages Funding Comfortable level of over-collateralisation in both cover pools Mortgage Cover Pool: Total Cover Funds Public Sector Cover Pool: Total Cover Funds Overview EUR billions (Nominal) EUR billions (Nominal) OC (%) OC (%) OC (absolute) OC (absolute) Pfandbriefe outstanding Pfandbriefe
Slide 13: Deposit platform pbbdirekt.com with deposits of approx. EUR 1.4 bn
Key messages Funding Deposit business platform pbbdirekt.com with total deposits of approx. EUR 1.4 bn by end of May Significant increase of EUR 0.8 bn in 2014 to Overview a total volume of approx. EUR 1.4 bn by end of May (03/14: EUR 1.1 bn; 12/13: EUR 0.6 bn) Constantly growing number of clients –
Slide 14: Strategic portfolios growing
Key messages Portfolio Strategic portfolios growing Total Portfolio Overview EUR billions (EaD, Basel III)1 Business segments aligned to strategic scope – Strategic PIF business separated 69.4 68.8 – Non-strategic portfolios now bundled in the P/L Value Portfolio Strategic portfolios (REF + PIF) gro
Slide 15: High portfolio quality and low share of problem loans
Key messages Portfolio High portfolio quality reflected in sound risk profile and low share of problem loans REF Portfolio: EL Classes EL class S&P scale Total Problem Loans1 Coverage ratio (adjusted)2 Overview 1-5 AAA to A- 31/03/2014 (EaD) 6-8 BBB+ to BBB- EUR billions (EaD, Basel III) Workout loa
Slide 16: New Business of EUR 1.6 bn
Key messages New Business New business of EUR 1.6 bn meets expectation for a usually weaker Q1 – newly-originated loans with high share of 97% Total New Business PIF Overview EUR billions (Commitments, incl. extensions >1 yr) REF 2.6 2.2 0.3 1.6 1.8 0.4 1.6 <0.1 P/L 0.5 0.3 2.3 1.6 1.8 1.3 1.3 Capit
Slide 17: Key take-aways
Key messages Key take-aways Overview ► pbb continues positive devolpment P/L ► New business origination and funding running successfully Capital, B/S & ► Risks tightly managed Funding ► Full focus on increasing profitability New Business Portfolio & ► Further increase of revenues from lending busine
Slide 18: Appendix
Appendix Unaudited Results Q1 2014, 2nd June 2014
Slide 19: Income/Expenses
Key messages Income Statement Income/Expenses Overview EUR millions 2010 2011 2012 Q1/13 Q2/13 Q3/13 Q4/13 2013 Q1/14 Operating revenues 652 526 467 101 113 155 113 482 89 Net interest and similar 600 371 296 79 74 79 87 319 89 income P/L Net commission income -10 32 23 1 1 3 4 9 0 Net trading incom
Slide 20: Public Benchmark Issuances since 2013
Key messages Funding Public Benchmark Issuances since 2013 Overview Type WKN Launch Date Maturity Date Size Spread1 Coupon Issue/Reoffer Price Senior Unsecured A1RFBU 17.01.2013 19.07.2016 EUR 500 mn +138bp 2.000% 99.587% Mortgage Pfandbrief A1RFBY 23.01.2013 30.01.2017 EUR 500 mn +8bp 0.875% 99.585
Slide 21: Total Portfolio by Regions
Key messages Portfolio Total Portfolio Total Portfolio by Regions Overview EUR billions (EaD, Basel III)1 33.5 32.7 31/12/2013 / Total: EUR 69.4 bn 31/03/2014 / Total: EUR 68.8 bn P/L 6.5 6.5 5.2 5.1 4.9 5.1 4.5 4.5 3.8 3.9 3.4 3.4 Capital, B/S & 1.7 1.8 1.7 1.6 1.4 1.4 1.1 0.9 0.8 0.9 0.6 0.5 0.4 0
Slide 22: REF: Portfolio by Regions
Key messages Portfolio Real Estate Finance (REF) REF: Portfolio by Regions Overview EUR billions (EaD, Basel III) 12.1 12.2 31/12/2013 / Total: EUR 22.2 bn 31/03/2014 / Total: EUR 22.8 bn P/L 3.5 3.5 2.1 2.3 1.8 1.9 1.4 1.5 Capital, B/S & 0.5 0.5 0.3 0.3 0.2 0.2 0.1 0.1 0.1 0.1 <0.1 <0.1 Funding Ger
Slide 23: REF: Portfolio by Property Types
Key messages Portfolio Real Estate Finance (REF) REF: Portfolio by Property Types Overview EUR billions (EaD, Basel III) 6.9 6.9 6.4 31/12/2013 / Total: EUR 22.2 bn 6.2 31/03/2014 / Total: EUR 22.8 bn 4.9 4.9 P/L 1.7 1.8 1.0 1.2 1.2 1.2 Capital, B/S & 0.4 0.4 Funding Office Retail/ Residential Wareh
Slide 24: REF: Portfolio by Loan Types
Key messages Portfolio Real Estate Finance (REF) REF: Portfolio by Loan Types Overview EUR billions (EaD, Basel III) 20.4 20.9 31/12/2013 / Total: EUR 22.2 bn 31/03/2014 / Total: EUR 22.8 bn P/L Capital, B/S & 1.2 1.4 Funding 0.4 0.4 0.2 0.1 Investment loans Development loans Customer derivatives Ot
Slide 25: REF: Portfolio by EL Classes
Key messages Portfolio Real Estate Finance (REF) REF: Portfolio by EL Classes Overview EUR billions (EaD, Basel III) 5.4 31/12/2013 / Total: EUR 22.2 bn 4.9 31/03/2014 / Total: EUR 22.8 bn EL class S&P rating scale 3.4 3.4 3.4 1-5 AAA to A- P/L 2.9 2.9 6-8 BBB+ to BBB- 2.6 9-11 BB+ to BB- 12-14 B+ t
Slide 26: PIF: Portfolio by Regions
Key messages Portfolio Public Investment Finance (PIF) PIF: Portfolio by Regions Overview EUR billions (EaD, Basel III) 2.2 2.1 2.1 31/12/2013 / Total: EUR 8.4 bn 2.0 1.8 31/03/2014 / Total: EUR 8.6 bn 1.7 1.6 1.6 P/L 0.3 0.3 0.3 0.3 0.2 0.2 Capital, B/S & 0.2 0.1 Funding Germany Spain France Italy
Slide 27: PIF: Portfolio by Counterparty Types
Key messages Portfolio Public Investment Finance (PIF) PIF: Portfolio by Counterparty Types Overview EUR billions (EaD, Basel III) 4.6 4.7 31/12/2013 / Total: EUR 8.4 bn 31/03/2014 / Total: EUR 8.6 bn P/L 1.8 1.7 1.9 1.7 Capital, B/S & 0.3 0.3 Funding Local Authorities Public Sector Entities1 Corpor
Slide 28: PIF: Portfolio by PD Classes
Key messages Portfolio Public Investment Finance (PIF) PIF: Portfolio by PD Classes Overview EUR billions (EaD, Basel III) 4.8 4.6 31/12/2013 / Total: EUR 8.4 bn 31/03/2014 / Total: EUR 8.6 bn 3.5 3.5 PD class S&P rating scale 1-7 AAA to A- P/L 8-10 BBB+ to BBB- 11-13 BB+ to BB- 14-22 B+ to B- 23-27
Slide 29: VPnew: Portfolio by Regions
Key messages Portfolio Value Portfolionew (VPnew) VPnew: Portfolio by Regions Overview EUR billions (EaD, Basel III)1 10.1 9.6 31/12/2013 / Total: EUR 25.0 bn 31/03/2014 / Total: EUR 24.5 bn 6.0 6.0 P/L 1.8 1.8 1.6 1.6 1.6 1.6 1.4 1.4 1.1 1.0 0.8 0.8 Capital, B/S & 0.3 0.3 0.2 0.2 0.1 0.1 <0.1 <0.1
Slide 30: VPnew: Portfolio by Counterparty Types
Key messages Portfolio Value Portfolionew (VPnew) VPnew : Portfolio by Counterparty Types Overview EUR billions (EaD, Basel III)1 8.1 8.1 31/12/2013 / Total: EUR 25.0 bn 31/03/2014 / Total: EUR 24.5 bn 6.3 6.0 6.0 5.9 P/L 3.3 3.3 1.3 1.2 Capital, B/S & Funding Sovereign Local Authorities Financial I
Slide 31: VPnew: Portfolio by PD Classes
Key messages Portfolio Value Portfolionew (VPnew) VPnew : Portfolio by PD Classes Overview EUR billions (EaD, Basel III)1 18.1 17.9 31/12/2013 / Total: EUR 25.0 bn 31/03/2014 / Total: EUR 24.5 bn PD class S&P rating scale 1-7 AAA to A- P/L 8-10 BBB+ to BBB- 11-13 BB+ to BB- 14-22 B+ to B- 23-27 CCC+
Slide 32: Risk: Problem loans
Key messages Risk Problem loans Total Problem Loans1 Overview EUR billions (EaD, Basel III) 81 100% France 73 23% 23% Japan -18% Italy 18% 18% 940 Hungary 2 P/L 771 Austria 18% 2 24% Benelux Spain 938 Sweden 769 41% 35% Capital, B/S & Germany Funding UK 12/13 03/14 12/13 03/14 New Business No. of in
Slide 33: New Business: Real Estate Finance (REF)
Key messages New Business Real Estate Finance (REF) New Business: Regions Portfolio: Regions Overview Q1 2014: EUR 1,285 million (Commitments, incl. extensions >1 yr) EUR billions (EaD, Basel III) 12/13 03/14 Germany 625 (49%) Germany 12.1 54% 12.2 54% UK 82 (6%) UK 3.5 16% 3.5 16% France 181 (14%)
Slide 34: New Business: Public Investment Finance (PIF)
Key messages New Business Public Investment Finance (PIF) New Business: Regions Portfolio: Regions Overview Q1 2014: EUR 301 million (New commitments) EUR billions (EaD, Basel III) 12/13 03/14 Spain 0 Spain 2.1 25% 2.1 25% Germany 240 (80%) Germany 2.0 24% 2.2 26% P/L France 61 (20%) France 1.7 20%
Slide 35: Contact Details
Contact Details Communications Walter Allwicher +49 (0)89 2880 28787 walter.allwicher@pfandbriefbank.com Investor Relations Michael Heuber +49 (0)89 2880 28778 michael.heuber@pfandbriefbank.com Website www.pfandbriefbank.com/investor-relations.html © Deutsche Pfandbriefbank AG Freisinger Strasse 5 8
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