Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — FY2012 Earnings Presentation
42 slides from Deutsche Pfandbriefbank's earnings presentation, Mar 7, 2013
Slide 1: Preliminary Results 2012
Analyst/Investor Presentation Preliminary Results 2012: Pre-tax profit of EUR 124 mn in line with guidance despite difficult market environment UNAUDITED FIGURES Preliminary Unaudited Results 2012, 7th March 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: Achievements
Achievements Pre-tax profit of EUR 124 mn in ̶ pbb profitable since Q3 2010, i.e. for line with target range of EUR 100- ten quarters in a row or the second Profit targets achieved 140 mn consecutive full year Study confirms sustainability of ̶ Expert report commissioned by Feasibility study confirm
Slide 4: Achievements
Achievements Successful funding activities with ̶ Receptiveness of funding markets pbb re-established total long-term funding volume better than expected beginning of as frequent issuer of EUR 6.5 bn 2012 Frequent Pfandbrief issuances ̶ Four Mortgage Pfandbriefe publicly and successful re-entry into
Slide 5: Income Statement: Pre-tax profit in line with guidance
Income Statement Financials Pre-tax profit of EUR 124 mn for full-year 2012 in line with guidance of EUR 100-140 mn despite difficult market environment New Business Pre-tax Profit (IFRS) EUR millions 188 Lower interest income due to a conservative 124 liquidity strategy and lower interest rate leve
Slide 6: Result from Loan Business
Income Statement Financials Loan business driven by interest and fee income as well as loan-loss provisions New Business Result from Loan Business (IFRS) EUR millions FY 2011 FY 2012 Key drivers Net interest and similar income 371 296 Less positive one-off effects Lower asset base, but positive effe
Slide 7: Further Result from Business Activities
Income Statement Financials Further result from business activities mainly driven by FMS-WM servicing, IT services for DEPFA and bank levy New Business Further Result from Business Activities (IFRS) EUR millions FY 2011 FY 2012 Key drivers Balance of other operating 184 131 Income/expenses mainly dr
Slide 8: Other Operating Income/Expenses and Administrative Expenses
Income Statement Financials Fee income from FMS-WM servicing goes along with related general administrative expenses New Business Balance of Other Operating Income/Expenses (IFRS) General Administrative Expenses (IFRS) EUR millions EUR millions 49 -30 -32 -34 -33 -32 37 34 30 30 Funding -35 -24 -24
Slide 9: Result from Financial Instruments
Income Statement Financials Positive effect on financial instruments from market valuations and sale of Portugal bonds New Business Result from Financial Instruments (IFRS) EUR millions FY 2011 FY 2012 Key drivers Net trading income -8 10 Derivative valuation Funding Net income from financial invest
Slide 10: Balance Sheet: Total Assets
Balance Sheet Financials Total balance sheet down to EUR 97 bn – hardly any counter-effects resulting from the asset transfer to FMS-WM left New Business Total Assets (IFRS) EUR billions -42% 187 -11% Counter-effects resulting from the asset transfer Funding 74 to FMS-WM further reduced, primarily r
Slide 11: Capitalisation
Capitalisation Financials pbb well capitalised with 18.1% (full-year profit not yet included) New Business RWA/Tier I ratio (SolvV, German GAAP/HGB) The regulatory capital ratios stated are calculated on an EUR billions unaudited pro-forma basis. According to the ‘Waiver Rule’ regulated in Sec. 2a K
Slide 12: New Business
New Business Financials New business activities successfully reinforced after restrictive approach at the beginning of the year in the light of strained funding markets New Business New Business (incl. extensions >1 yr) Public Investment Finance (PIF) EUR billions Real Estate Finance (REF) 8.0 1.71
Slide 13: REF: New business diversified by region and property type
New Business Financials Real Estate Finance (REF): New business well diversified by region and property type New Business FY 2012: Regions and Property Types Other2 EUR billions Residential 1.6 Retail/Shopping Warehouse/Logistics Office 0.7 1.0 Funding 0.9 0.4 0.1 0.7 0.3 0.6 0.1 0.3 0.3 <0.1 0.5 <0
Slide 14: PIF: New business focused on Germany and France
New Business Financials Public Investment Finance (PIF): New business focused on Germany and France New Business FY 2012: Regions and Counterparty Types Sovereign guaranteed EUR billions Government related companies 0.5 Local authorities 0.2 Funding 0.1 0.3 0.1 <0.1 Cover Pools <0.1 <0.1 <0.1 France
Slide 15: Origination presence strengthened with new sales offices
New Business Financials Origination presence strengthened with new sales offices in Germany and Sweden New Business Business model focused on Germany and selected European countries – however, currently no new business in Spain and Italy Three new sales offices opened in Germany to bring pbb’s exper
Slide 16: Funding
Funding Financials Successful funding activities with re-entry into market for unsecured funding in benchmark format New Business Long-term Funding 20121 Total long-term funding volume of EUR 6.5 bn EUR billions better than initially expected beginning of 2012 Pfandbriefe Unsecured Total in the ligh
Slide 17: Public benchmark issuances 2012
Funding Financials All public benchmark bonds issued in 2012 with good performance in the secondary market New Business Public Benchmark Issuances 2012 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%
Slide 18: Liquidity: Conservative liquidity strategy
Liquidity Financials Conservative liquidity strategy New Business Liquidity ratio1 According to German Regulation on Liquidity (‘Liquiditätsverordnung’) 3.5 Funding 3.0 Liquidity ratio 2.5 Statutory minimum 1.0 Cover Pools 2.0 1.5 Portfolio 1.0 Summary & Outlook 0.5 0.0 Appendix 12/10 03/11 06/11 09
Slide 19: Cover Pools: Over-collateralisation
Cover Pools Financials Comfortable levels of over-collateralisation (OC) New Business Mortgage Cover Pool: Total Cover Funds Public Sector Cover Pool: Total Cover Funds EUR billions (nominal) EUR billions (nominal) 45.8% 12.1% 42.0% 10.9% 10.8% 32.9% 10.1% 30.7% 44 Funding 4 37 35 23 33 22 19 20 4 3
Slide 20: Portfolio: Total exposure
Portfolio Financials Total exposure further down, primarily reflecting the strategy conform run-down of the Public Budget Finance business New Business Total Exposure EUR billions (EaD)1 88 82 80 9 75 2 14 13 1 0.3 Funding 46 41 39 Cover Pools 25 24 24 12/2010 12/20112 09/20122 12/20122 Portfolio Co
Slide 21: REF: Exposure by regions and property types
Portfolio Financials REF: Exposure well diversified by regions and property types New Business REF: Exposure by Regions and Property Types Other1 31/12/2012: EUR 23.7 bn (EaD) Hotel/Leisure 12.1 Warehouse/Logistics Residential Retail/Shopping Office Funding 3.4 2.2 2.2 1.6 Cover Pools 0.5 0.5 0.4 0.
Slide 22: Non-REF: Exposure to Portugal, Italy and Spain
Portfolio Financials Non-REF: Exposure to peripheral southern-European countries considerably reduced due to maturities and active portfolio management New Business Non-REF: Exposure to Portugal Non-REF: Exposure to Italy EUR billions (EaD)1 EUR billions (EaD)1 -38% 5.0 0.1 4.1 0.1 Funding 1.9 3.1 -
Slide 23: Non-REF: Exposure predominantly to Germany
Portfolio Financials Non-REF: Exposure predominantly to Germany New Business Non-REF: Exposure by Regions and Counterparty Types Other 31/12/2012: EUR 51.7 bn (EaD)1,2 Corporates3 24.5 Public Sector Entities4 Financial Institutions Local Authorities Sovereign5 Funding 6.2 5.4 4.1 3.1 Cover Pools 2.2
Slide 24: Total problem loans
Portfolio Financials Total problem loans reduced due to active management and adequately covered – almost no workout loans New Business Total Problem Loans 12/2012: EUR 1.1 bn EUR billions (EaD) Regions 92 93 Japan 3% 88 Austria 4% Luxembourg <1% 82 Netherlands 1.3 1.3 Spain 1.2 Funding 0.0 0.0 1.1
Slide 25: Strategic Priorities 2013
Strategic Priorities 2013 Financials New Business Optimise set-up and enhance ̶ Streamline organisational structure Implementation of efficiency and processes pbb target model ̶ Cost reduction (e.g. IT, professional services) Funding Stronger focus on customers and ̶ Strengthen market teams and alig
Slide 26: Outlook 2013
Outlook 2013 Financials Pre-tax profit target of EUR >100 mn based on initial dis-synergies arising from exit of FMS-WM servicing and planning of more normalised level of risk provisioning New Business New business FY 2012 FY 2013e Key drivers New business (incl. extensions New business activities r
Slide 27: Appendix
Appendix Preliminary Unaudited Results 2012, 7th March 2013
Slide 28: Income Statement (IFRS)
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 Q3 2012 Q4 2012 FY 2012 Operating revenues 652 131 162 129 104 526 103 120 130 114 467 Net interest and similar income 600 97 95 101 78 371 76 74 7
Slide 29: Mortgage Cover Pool: Cover funds by region
Cover Pools Financials Mortgage Cover Pool New Business Cover Funds by Region Mortgage cover pool (Nominal) 31/12/2011 31/12/2012 EUR billions (Nominal) Pfandbriefe outstanding EUR 14.7 bn EUR 14.2 bn Cover funds EUR 21.5 bn EUR 20.2 bn 10.5 Over-collateralisation (Nominal/NPV) 45.8% / 45.4% 42.0% /
Slide 30: Mortgage Cover Pool: Cover funds by property type
Cover Pools Financials Mortgage Cover Pool New Business Cover Funds by Property Type EUR billions (Nominal) 31/12/2011 / Total: EUR 18.9 bn1 7.2 31/12/2012 / Total: EUR 17.6 bn1 6.4 4.8 Funding 4.5 4.4 3.7 3.0 2.5 Cover Pools Office Retail/Shopping Residential Other2 31/12/2011 31/12/2012 Portfolio
Slide 31: Mortgage Cover Pool: Maturity profile
Cover Pools Financials Mortgage Cover Pool New Business Maturity Profile1 31/12/2011: EUR millions (Nominal) 6,000 Pfandbriefe outstanding / Total: EUR 14.7 bn 5,000 Cover funds / Total: EUR 21.5 bn 4,000 Funding 3,000 2,000 Cover Pools 1,000 0 ≤1y >1-2y >2-3y >3-4y >4-5y >5-10y >10y 31/12/2012: EUR
Slide 32: Public Sector Cover Pool: Cover funds by region
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 31/12/2012 EUR billions (Nominal) Pfandbriefe outstanding EUR 33.7 bn EUR 29.1 bn 31/12/2011
Slide 33: 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) 31/12/2011 / Total: EUR 35.7 bn1,2 13.0 13.4 31/12/2012 / Total: EUR 32.7 bn1,2 12.6 12.4 8.8 Funding 5.3 Cover Pools 1.6 1.4 Regional authorities Central governments Local authoritie
Slide 34: Public Sector Cover Pool: Maturity profile
Cover Pools Financials Public Sector Cover Pool New Business Maturity Profile1 31/12/2011: EUR millions (Nominal) 12,000 Pfandbriefe outstanding / Total: EUR 33.7 bn 10,000 Cover funds / Total: EUR 37.4 bn 8,000 Funding 6,000 4,000 Cover Pools 2,000 0 ≤1y >1-2y >2-3y >3-4y >4-5y >5-10y >10y 31/12/20
Slide 35: REF: Exposure by region
Portfolio Financials Real Estate Finance (REF) New Business Exposure by Region EUR billions (EaD) 13.1 12.1 31/12/2011 / Total: EUR 25.2 bn 31/12/2012 / Total: EUR 23.7 bn Funding 3.0 3.4 2.5 2.2 2.2 2.2 1.7 1.6 Cover Pools 0.8 0.5 0.6 0.4 0.5 0.5 0.3 0.3 0.3 0.2 0.2 0.1 <0.1 <0.1 Germany UK France
Slide 36: REF: Exposure by property type
Portfolio Financials Real Estate Finance (REF) New Business Exposure by Property Type EUR billions (EaD) 8.9 31/12/2011 / Total: EUR 25.2 bn 7.5 7.1 6.9 31/12/2012 / Total: EUR 23.7 bn Funding 5.1 5.0 2.8 2.4 1.4 1.2 Cover Pools 0.3 0.3 Office Retail/ Residential Warehouse/ Hotel/ Other1 Shopping Lo
Slide 37: REF: Exposure by loan type
Portfolio Financials Real Estate Finance (REF) New Business Exposure by Loan Type EUR billions (EaD) 23.3 22.3 31/12/2011 / Total: EUR 25.2 bn 31/12/2012 / Total: EUR 23.7 bn Funding Cover Pools 1.0 0.6 0.8 0.7 0.1 0.1 Investment loans Development loans Customer derivatives Other 31/12/2011 31/12/20
Slide 38: REF: Exposure by EL classes
Portfolio Financials Real Estate Finance (REF) 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- 4.9 9-11 BB+ to BB- 31/12/2011 / Total: EUR 25.2 bn 12-14 B+ to B- 3.9 4.0 31/12/2012 / Total: EUR 23.7 bn 15-18 CCC+ and below 3.5 3.3 3.4 F
Slide 39: Non-REF: Exposure by region
Portfolio Financials Non-Real Estate Finance (Non-REF) New Business Exposure by Region EUR billions (EaD)1,2 24.1 24.5 31/12/2011 / Total: EUR 56.8 bn 31/12/2012 / Total: EUR 51.7 bn Funding 6.9 6.2 5.2 5.4 5.0 4.5 4.1 3.1 Cover Pools 2.0 2.2 2.0 1.6 1.8 1.6 1.0 0.6 1.0 0.7 1.0 0.1 0.8 0.6 0.6 0.6 0
Slide 40: Non-REF: Exposure by counterparty type
Portfolio Financials Non-Real Estate Finance (Non-REF) New Business Exposure by Counterparty Type EUR billions (EaD)1,2 16.3 15.3 31/12/2011 / Total: EUR 56.8 bn 13.7 13.4 31/12/2012 / Total: EUR 51.7 bn 12.0 11.8 12.0 Funding 9.3 3.35 Cover Pools 1.3 <0.1 <0.1 Sovereign3 Local Authorities Financial
Slide 41: Non-REF: Exposure by PD class
Portfolio Financials Non-Real Estate Finance (Non-REF) New Business Exposure by PD Class PD class S&P rating scale EUR billions (EaD)1,2 1-7 AAA to A- 8-10 BBB+ to BBB- 52.1 11-13 BB+ to BB- 31/12/2011 / Total: EUR 56.8 bn 14-22 B+ to B- 40.6 31/12/2012 / Total: EUR 51.7 bn 23-27 CCC+ to CCC- 28-30
Slide 42: 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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