Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Q1 2012 Earnings Presentation
39 slides from Deutsche Pfandbriefbank's earnings presentation, May 22, 2012
Slide 1: Results Q1 2012: pbb on track with pre-tax profit of EUR 21 mio
Analyst/Investor Presentation Results Q1 2012: pbb on track with pre-tax profit of EUR 21 mio UNAUDITED FIGURES Results Q1 2012, 22nd May, 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 Q1 2012
Highlights Q1 2012 Financials New business pbb on track with pre-tax profit of EUR 21 mio Selective new business of EUR 0.8 bn (incl. extensions >1 year), given a restrictive approach in light of strained funding markets at the end of last year/beginning of this year Funding However, new business wr
Slide 4: Income statement
Income statement Financials pbb on track with pre-tax profit of EUR 21 mio New business Income statement (IFRS) EUR millions Net interest income slightly lower vs. Q4 Q4 2011 FY 2011 Q1 2012 2011, driven by a conservative liquidity Operating revenues 104 526 103 strategy as well as a reduced asset b
Slide 5: Balance sheet
Balance sheet Financials Counter-effects resulting from the asset transfer to FMS-WM further reduced – operating balance sheet now at EUR 99 bn New business Total assets (IFRS) EUR billions -42% Counter-effects resulting from the asset transfer to FMS-WM 187 Operating balance sheet -5% Funding 74 10
Slide 6: Capitalisation
Capitalisation Financials pbb sufficiently capitalised with Tier I ratio of 15.9% 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
Slide 7: New business
New business Financials Selective new business at substantially higher margins and lower LTVs (REF) New business Total new business (incl. extensions >1 yr) Real Estate Finance FY 2010 FY 2011 Q1 2012 EUR billions No. of deals 65 88 17 8.0 Average maturity ~3.9 yrs ~4.2 yrs ~4.2 yrs 1.71 PIF Average
Slide 8: New business: Real Estate Finance focus on core European markets
New business Financials Real Estate Finance (REF): Focus on core European markets in particular Germany, France and the UK as well as other selected European countries New business New business: REF New commitments by region (Q1 2012) EUR billions Extensions >1 year Scandinavia 6.3 8% UK France 15%
Slide 9: Funding
Funding Financials pbb aims to be a frequent Pfandbrief issuer with liquid benchmark transactions as well as tailor-made private placements New business Pfandbrief Unsecured Others In Q1, funding activities better than initially expected Mortgage Fitch AA+ Money Market Products Moody‘s Aa1 Bearer bo
Slide 10: Cover pools: second largest Pfandbrief issuer
Cover pools Financials With an outstanding Pfandbrief volume of EUR 47 bn (nominal), pbb is second largest Pfandbrief issuer New business Largest Pfandbrief issuers 31/03/2012: EUR billions (outstanding, nominal) 70 #2 Mortgage Pfandbriefe 47 Public Sector Pfandbriefe Funding 42 36 34 Cover pools To
Slide 11: Cover pools: over-collateralisation
Cover pools Financials Over-collateralisation provides comfortable cover for Pfandbriefe outstanding New business Mortgage cover pool: Total cover funds (Nominal) Public Sector cover pool: Total cover funds (Nominal) EUR billions EUR billions Over-Collateralisation (OC) Over-Collateralisation (OC) P
Slide 12: Public Sector cover pool
Public Sector cover pool Financials Cover pool quality considerably improved due to active cover pool management New business Cover funds by region EUR billions (Nominal) Funding EUR +2.0 bn EUR -1.5 bn 31/12/2011 / Total: EUR 35.7 bn1,2 31/03/2012 / Total: EUR 36.1 bn1,2 18.4 17.2 Cover pools 5.8 6
Slide 13: Total portfolio
Total portfolio Financials Future portfolio growth in strategic business areas REF and PIF expected to largely compensate mid-term for the run-off of Public Budget Finance New business Total portfolio EUR billions (EaD)1,2 88 VP 6 79 78 2 Consolidation Total portfolio stable at EUR 78 bn – growth in
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 New business Non-REF: Sovereign exposure REF: Real Estate exposure EUR billions (EaD)1,2 EUR billions (EaD)1,2 31/12/2011 31/12/2011 31/03/2012 31/03/2012 F
Slide 15: Problem loans
Problem loans Financials Total problem loans remain on stable low level and are adequately covered New business Total problem loans Non-REF REF problem loans Workout loans1 EUR billions (EaD) EUR billions (EaD) REF Restructuring loans2 1.4 1.3 1.3 1.3 1.2 0.1 0.1 1.2 0.0 0.0 0.1 0.0 Funding 1.3 1.3
Slide 16: Summary and outlook
Summary and outlook Financials New business pbb on track for sustainable profitability – PBT target of EUR 100-140 mio for full-year 2012 remains unchanged However, this requires an adequate market situation without further distortions (e.g. sovereign Funding default) Earnings base to improve mid-te
Slide 17: Appendix
Appendix Results Q1 2012, 22nd May, 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 (Munich) Cover pools 100% 100% Deutsche DEPFA Bank plc1 Pfandbriefbank AG (Dublin) Portfolio (Munich) Issuer of publicly traded capit
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: Business model and strategy: regional focus
Business model and strategy Financials Regional focus on Germany and other selected European countries – expansion of local presence in the German and Scandinavian market envisaged New business Real Estate Finance (REF) Core countries with sales locations Public Investment Finance (PIF) Core countri
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: pbb well positioned for continued growth
Business model and strategy Financials pbb well positioned for continued growth in strategic business lines New business Business model – pbb in excellent position Market environment – big potential in growing market Two business lines Diversification in products and regions Upturn in certain market
Slide 24: 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 Operating revenues 652 131 162 129 104 526 103 Net interest and similar income 600 97 95 101 78 371 76 Net commission income -10 14 5 6 7 32 3 Funding ther
Slide 25: 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 -5% -5% Liabilities to other banks 80 Funding Loans and advances 109 and customers 104 109 104 (Public Sector,
Slide 26: Real Estate portfolio: exposure by region
Portfolio Financials Real Estate portfolio New business Exposure by region EUR billions (EaD)1,2 13.1 12.7 31/12/2011 / Total: EUR 25.2 bn 31/03/2012 / Total: EUR 24.8 bn Funding 3.0 3.1 2.6 2.6 2.2 2.2 1.7 1.6 Cover pools 0.8 0.8 0.6 0.6 0.5 0.6 0.3 0.2 0.2 0.2 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0
Slide 27: Real Estate portfolio: exposure by loan type
Portfolio Financials Real Estate portfolio New business Exposure by loan type EUR billions (EaD)1,2 23.4 23.1 31/12/2011 / Total: EUR 25.2 bn 31/03/2012 / Total: EUR 24.8 bn Funding Cover pools 1.0 1.0 0.8 0.7 0.1 0.1 Investment loans Development loans REF derivatives Others 31/12/2011 31/03/2012 Po
Slide 28: Real Estate portfolio: exposure by property type
Portfolio Financials Real Estate portfolio New business Exposure by property type EUR billions (EaD)1,2 8.9 8.7 31/12/2011 / Total: EUR 25.2 bn 7.1 7.2 31/03/2012 / Total: EUR 24.8 bn Funding 5.2 5.0 2.4 2.4 1.4 1.3 Cover pools 0.3 0.3 Office Retail/ Residential Industrial/ Hotel/ Others Shopping Lo
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)1,2 1-5 AAA to A- 6-8 BBB+ to BBB- 4.6 9-11 BB+ to BB- 4.0 31/12/2011 / Total: EUR 25.2 bn 12-14 B+ to B- 3.5 3.4 3.6 31/03/2012 / Total: EUR 24.8 bn 15-18 CCC+ and below 3.3 3.
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 21.1 21.7 31/12/2011 / Total: EUR 53.8 bn 31/03/2012 / Total: EUR 52.9 bn Funding 6.9 6.8 5.2 5.4 5.0 4.5 4.5 4.1 2.0 1.6 2.1 2.4 Cover pools 1.8 1.8 1.0 0.9 1.0 0.9 1.0 0.8 0.8 0.8 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 15.3 14.4 14.2 31/12/2011 / Total: EUR 53.8 bn 13.3 12.7 31/03/2012 / Total: EUR 52.9 bn 12.0 11.8 10.1 Funding Cover pools 1.3 1.4 0.0 0.2 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- 49.1 8-10 BBB+ to BBB- 47.7 11-13 BB+ to BB- 31/12/2011 / Total: EUR 53.8 bn 14-22 B+ to B- 31/03/2012 / Total: EUR 52.9 bn 23-27 CCC+ to CCC- 28-30 D Fundin
Slide 33: 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 31/03/2012 EUR billions (Nominal) Pfandbriefe outstanding EUR 14.7 bn EUR 13.5 bn 10.5 10.3 Cover funds EUR 21.5 bn EUR 19.6 bn 31/12/2011 / Total: EUR 18.9 bn1 Over-collateralisati
Slide 34: 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 31/03/2012 / Total: EUR 18.8 bn1 4.8 5.0 Funding 4.4 4.2 2.5 2.4 Cover pools Office Retail/Shopping Residential Others2 31/12/2011 31/03/2012 Portfolio
Slide 35: 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 31/03/2012: E
Slide 36: Public Sector cover pool: cover funds by region
Cover pools Financials Public Sector cover pool New business Cover funds by region Public Sector cover pool (Nominal) 31/12/2011 31/03/2012 EUR billions (Nominal) Pfandbriefe outstanding EUR 33.7 bn EUR 33.3 bn 18.4 Cover funds EUR 37.4 bn EUR 36.1 bn 17.2 1,2 Over-collateralisation (Nominal/NPV) 10
Slide 37: Public Sector cover pool: counterparty type
Cover pools Financials Public Sector cover pool New business Cover funds by counterparty type EUR billions (Nominal) 13.7 13.0 12.4 12.4 31/12/2011 / Total: EUR 35.7 bn1,2 31/03/2012 / Total: EUR 36.1 bn1,2 8.8 Funding 8.5 Cover pools 1.6 1.5 Regional authorities Central governments Local authoritie
Slide 38: 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 31/03/
Slide 39: 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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