Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — 9M 2024 Earnings Presentation
70 slides from Deutsche Pfandbriefbank's earnings presentation, Nov 13, 2024
Slide 1: Analyst Presentation Results 9M/2024
Analyst Presentation Results 9M/2024 13 November 2024
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: Strategy 2027
STRATEGY 2027 RE Finance Solutions RE Investment Solutions Diversify into growth assets ~10% fee income in pbb revenue mix Focused portfolio with Originate & Cooperate as growth lever increased profitability beyond pbb invest Non-Core Platform Continued value-preserving run-down
Slide 4: Key Messages
KEY MESSAGES Solid pre-tax profit of € 87 mn in 9M/24 with Q3/24 at € 40 mn strongest quarter y-t-d Robust operating income with increased NII (+3% y-o-y) and resilient realisation income Pre-provision profit up 16% y-o-y (€ 227 mn) Risk provisioning remains elevated, as expected (9M/24: € -
Slide 5: Agenda
AGENDA 1. Highlights 9M/24 and P&L 2. Portfolio Quality Focus USA Development Germany 3. Funding 4. Capital & Balance Sheet Management 5. Economic Outlook & Summary 6. Appendix Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 5
Slide 6: Operating & Financial Overview: Focus on profitability
OPERATING & FINANCIAL OVERVIEW Focus on profitability REF new business REF portfolio € bn (commitments, incl. extensions > 1 yr.) New business with focus € bn (financing volume) REF portfolio down y-o-y, on favourable risk/return reflecting portfolio GIM1 ~200 bp ~240 bp profile in line with Str
Slide 7: Robust operating income – risk costs down in Q3/24
OPERATING & FINANCIAL OVERVIEW Robust operating income – risk costs down in Q3/24 Operating income NII/NCI General admin. expenses Personnel € mn (IFRS) Realisation & other income NII up y-o-y, driven by € mn (IFRS) Non-personnel GAE stable y-o-y – infla- slightly higher avg. REF tionary cost pr
Slide 8: Operating Income: Pre-provision profit up by 16% y-o-y
OPERATING INCOME Pre-provision profit up by 16% y-o-y Operating income Realisation income € mn (IFRS) Quarterly view € mn (IFRS) Others Prepayment fees Others Prepayment fees Asset sales Derecognition of +2% Derecognition of 2 -2 time barred liabilities 3 -2 425 7 4 415 time barred liabilities Asset
Slide 9: Risk Costs: Improved macro-economic parameters in Q3/24
RISK COSTS Improved macro-economic parameters in Q3/24 Net income from risk provisioning Stage 1&21 Stage 3 Other2 Stage 1&2 € mn (IFRS) Quarterly view € mn (IFRS) 2023 2024 Other Other Germany UK 7 19 12 7 22 Germany -7 5 -10 -9 1 -10 1 2 -6 UK 4 -4 -9 0 -2 -37 -63 -59 -111 -19 -95 -159 -100 -47 9M
Slide 10: Risk Costs: Loss allowances reduced by NPL management
RISK COSTS Loss allowances reduced by NPL management Balance sheet – loss allowances Stage 1&2 € mn € mn (IFRS) REF Other Germany 189 bp 199 bp 185 bp 194 bp coverage 13 20 589 623 UK 539 568 39 19 41 27 134 142 33 96 09/24 119 € 123 mn Stage 1 414 442 387 445 Stage 2 Stage 3 USA 71 12/23 03/24 06/2
Slide 11: Operating Expenses: Strict focus on cost discipline
OPERATING EXPENSES Strict focus on cost discipline Operating expenses Operating expenses stable y-o-y € mn (IFRS) Inflationary cost pressure managed Quarterly Overview Cost uplift in Q3/24 driven by normalization of personnel costs after provision release in Q2/24 increase of non-personnel
Slide 12: Agenda
AGENDA 1. Highlights 9M/24 and P&L 2. Portfolio Quality Focus USA Development Germany 3. Funding 4. Capital & Balance Sheet Management 5. Economic Outlook & Summary 6. Appendix Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 12
Slide 13: REF Portfolio Performing: Portfolio quality remains solid
REF PORTFOLIO PERFORMING Portfolio quality remains solid Performing Portfolio Performing REF portfolio reduced by € 3.3 bn (Q3/24: € 0.8 bn) € bn (EaD, Basel III) Repayments & others (9M/24: € 1.8 bn; Q3/24: € 0.6 bn) 31.5 29.0 Transfer to NPL (9M/24: € 0.6 bn; Q3/24: € 0.2 bn) 28.2 Portfoli
Slide 14: REF Portfolio NPL
REF PORTFOLIO NPL Driven by US loans and German developments NPL Portfolio Increase of NPL portfolio mainly driven by US loans and German € mn (EaD, Basel III) developments – active NPL management ongoing Q3/24 with number of cases managed down: +34 +411 -378 1,582 +13 -130 1,664 3 reductions
Slide 15: Focus: USA Performing
FOCUS: USA PERFORMING Portfolio further reduced to € 3.3 bn Performing Portfolio Performing US portfolio reduced by € 1.2 bn (Q3/24: € 0.2 bn) through € bn (EaD, Basel III) repayments & others (9M/24: € 0.2 bn; Q3/24: € 0.1 bn) 4.5 transfer to NPL (9M/24: € 0.5 bn; Q3/24: € 0.1 bn) portfolio
Slide 16: Focus: USA NPL
FOCUS: USA NPL US NPL down 4% in Q3/24 Non-Performing Portfolio Decrease of US NPL portfolio due to active NPL management € mn (EaD, Basel III) Q3/24: 1 reduction due to active NPL management +22 € 75 mn restructured (Chicago) -253 Repayments and restructuring at internal valuation marks 7
Slide 17: Focus: Development Portfolio
FOCUS: DEVELOPMENT PORTFOLIO Portfolio reduced by € 0.8 bn (-25%) Portfolio Performing Phase Portfolio reduced by € 0.8 bn (Q3/24: € 0.1 bn) € bn (EaD, Basel III) Non-performing 30/09/2024 (commitments, Basel III) 15 loans (Q3/24: 6) repaid/transferred to investment loans -19% Risk management
Slide 18: Focus: Germany Performing
FOCUS: GERMANY PERFORMING Well diversified, high quality portfolio Performing Portfolio Performing German portfolio reduced by € 1.0 bn (Q3/24: € 0.3 bn) through € bn (EaD, Basel III) Repayments & others (9M/24: € 0.9 bn; Q3/24: € 0.2 bn) 13.8 13.1 Transfer to NPL (9M/24: € 0.1 bn; Q3/24: € 0.
Slide 19: Agenda
AGENDA 1. Highlights 9M/24 and P&L 2. Portfolio Quality Focus USA Development Germany 3. Funding 4. Capital & Balance Sheet Management 5. Economic Outlook & Summary 6. Appendix Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 19
Slide 20: Liquidity and Funding: Strong and balanced position
LIQUIDITY AND FUNDING Strong and balanced position 2024 funding requirements already met LCR NSFR With more than € 2 bn Pfandbrief issuances y-t-d pbb already met its 2024 funding requirements No Senior Unsecured required >200% 116% Retail deposits at € 7.8 bn as of 09/24 (09/24) (09/24) Focus
Slide 21: Retail Deposits
RETAIL DEPOSITS Retail deposits exceed needs Retail deposits – development & maturity profile1 Growth of retail deposits peaked at € 8.1 bn in H1/24 € bn Current volume of € 7.8 bn (09/24) well exceeds needs WAL 3.6 yrs Continued focus on aligning deposit volume with actual overall WAL balance
Slide 22: Funding and Liquidity: Focus on optimising funding costs
FUNDING AND LIQUIDITY Focus on optimising funding costs 3Y Pfandbrief vs. Midswaps 100 Benchmark Benchmark tap Benchmark taps 90 Pfandbrief Starting the year with pre-funding, including a new € 500 mn 80 benchmark in January, pbb was in the position to avoid issuing bps 70 during volatile February
Slide 23: Agenda
AGENDA 1. Highlights 9M/24 and P&L 2. Portfolio Quality Focus USA Development Germany 3. Funding 4. Capital & Balance Sheet Management 5. Economic Outlook & Summary 6. Appendix Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 23
Slide 24: Capital: Basel IV F-IRBA approval granted
CAPITAL Basel IV F-IRBA approval granted Basel III: capital and leverage ratios Transition into targeted Basel IV F-IRBA regime started in Q2/24 (IFRS) – for transitional period, models calibrated towards standardised Transitional period risk parameters F-IRBA1 Pro-forma Temporary technical upli
Slide 25: Agenda
AGENDA 1. Highlights 9M/24 and P&L 2. Portfolio Quality Focus USA Development Germany 3. Funding 4. Capital & Balance Sheet Management 5. Economic Outlook & Summary 6. Appendix Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 25
Slide 26: Office Markets: Turning point in reach
OFFICE MARKETS Turning point in reach European Office market – prime yields US Office market – cap rates 6,0% forecast forecast 5,5% 10,0% 9,0% 5,0% 8,0% 4,5% 7,0% 4,0% 6,0% 3,5% 5,0% 3,0% 4,0% 2,5% 3,0% 2,0% 2,0% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2020 2021 2022 2023 2024 2025 2026 2027 2
Slide 27: Guidance 2024
GUIDANCE 2024 New business (incl. extensions > 1 year) € ~5.5 bn1 REF Portfolio Financing volume slightly below € ~30 bn1 Operating Income € 525-550 mn thereof: NII + NCI € 475-500 mn P&L LLPs << 2023 CIR ~50% Pre-tax profit >> 2023 Profitability RoE/RoCET1 after taxes >> 2023 Capitalisation CET 1 r
Slide 28: Agenda
AGENDA 1. Highlights 9M/24 and P&L 2. Portfolio Quality Focus USA Development Germany 3. Funding 4. Capital & Balance Sheet Management 5. Economic Outlook & Summary 6. Appendix Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 28
Slide 29: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials & Outlook 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG Contact Details Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 29
Slide 30: Focus on Profitability: Capital Markets Day 2024
FOCUS ON PROFITABILITY CAPITAL MARKETS DAY 2024 10th of October 2024 Full presentation can be downloaded on our website www.pfandbriefbank.com/investoren/capitalmarketsday Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 30
Slide 31: Strategy 2027 builds on three key pillars
CMD STRATEGY UPDATE Strategy 2027 builds on three key pillars RE FINANCE RE INVESTMENT NON- W H AT ? SOLUTIONS SOLUTIONS CORE Diversification and increase in pbb invest and Originate & Value preserving run-down of profitability Cooperate Non-Core portfolio Flexible, international and efficient platf
Slide 32: 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 33: RoTE definition
RoTE definition Return on Tangible Equity (RoTE) 9M/24 Profit before tax1) minus AT1-coupon RoTE € 91 mn1) IFRS equity2) before tax minus AT1-capital2) € 2,905 mn2) 3.1% (IFRS) minus goodwill and other intangible assets2) minus deferred tax income assets2) Net income after tax attributable to shareh
Slide 34: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials & Outlook 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG Contact Details Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 34
Slide 35: Key Figures: pbb Group
KEY FIGURES pbb Group Income statement (€ mn) 2022 Q1/23 Q2/23 Q3/23 Q4/23 2023 Q1/24 Q2/24 Q3/24 9M/24 Net interest income 489 106 110 132 134 482 125 121 113 359 Net fee and commission income 8 1 1 1 0 3 1 2 0 3 Net income from fair value measurement 20 1 -1 2 -2 0 -3 -1 8 4 Net income from realis
Slide 36: Key Figures: Real Estate Finance (REF)
KEY FIGURES Real Estate Finance (REF) Income statement (€ mn) 2022 Q1/233 Q2/233 Q3/233 Q4/233 20233 Q1/24 Q2/24 Q3/24 9M/24 Net interest income 420 97 101 118 121 437 116 113 107 336 Net fee and commission income 8 1 1 2 0 4 1 3 0 4 Net income from fair value measurement 14 0 -1 2 -1 0 -2 -1 5 2 Ne
Slide 37: Key Figures: Non-Core (PIF & VP)
KEY FIGURES Non-Core (PIF & VP) Income statement (€ mn) 2022 Q1/233 Q2/233 Q3/233 Q4/233 20233 Q1/24 Q2/24 Q3/24 9M/24 Net interest income 67 9 9 14 13 45 9 8 6 23 Net fee and commission income 0 0 0 -1 0 -1 0 -1 0 -1 Net income from fair value measurement 6 1 0 0 -1 0 -1 0 3 2 Net income from reali
Slide 38: Balance Sheet
BALANCE SHEET Balance sheet IFRS, € bn Assets 30/09/24 31/12/23 Liabilities & equity 30/09/24 31/12/23 Financial assets at fair value through P&L 1.1 0.9 Financial liabilities at fair value through P&L 0.7 0.7 thereof thereof Positive fair values of stand-alone derivatives 0.5 0.5 Negative fair valu
Slide 39: Pro-active management of pbb's balance sheet
BALANCE SHEET Pro-active management of pbb’s balance sheet Portfolio transaction in May 2024 – sale of € 0.9 bn performing Portfolio transaction (05/24) (€ bn, financing volume) loan portfolio, RWA relief of € 0.7 bn Active REF 0.9 0.9 Transaction targets to improve REF portfolio RoE and to Port
Slide 40: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials & Outlook 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG Contact Details Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 40
Slide 41: REF New Business
Selective new business volume with margins on REF NEW BUSINESS elevated level Volume of strategic REF portfolio in € bn Strategic REF portfolio down y-t-d and q-o-q, in line with Strategy (financing volume) 2027 Avg. portfolio margin further up Selective new business volume of € 2.5 bn with fo
Slide 42: REF New Business: Diversification supports management of the cycle
REF NEW BUSINESS Diversification supports management of the cycle As of 30/09/24 Regions Property types Mixed use/ Other Hotel <1% other Logistics/ 2% 13% storage € 2.5 bn Nordics 9% 40% Germany 23% CEE 4% 47% Office New business 11% (commitments, incl. 14% Retail extensions > 1 year) USA 1% 16% 18%
Slide 43: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials & Outlook 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG Contact Details Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 43
Slide 44: Portfolio: Total portfolio
PORTFOLIO Total portfolio Regions (EaD, Basel III ) 31/12/2023 / Total: € 51.3 bn 30/09/2024 / Total: € 45.4 bn Czech Republic 1% Czech Republic 1% Other Rest of World 1% Finland 1% Other Rest of World 1% Finland 1% Sweden 2% Hungary < 1% Sweden 3% Hungary < 1% Spain 1% Spain 1% Italy 3% Italy 3% 3%
Slide 45: Portfolio: Real Estate Finance (REF)
PORTFOLIO Real Estate Finance (REF) Regions Property types 31/12/2023: € 33.0 bn 30/09/2024: € 29.9 bn 31/12/2023: € 33.0 bn 30/09/2024: € 29.9 bn Mixed use 1% Mixed use 1% Austria 1% Other Europe Austria 1% Other Europe Hotel 3% Other 1% Hotel 3% Other 1% Czech Republic 2% Czech Republic 2% Retail
Slide 46: REF Portfolio: LTV development reflects market environment
REF PORTFOLIO LTV development reflects market environment LTV – Regions LTV – Property types (€ bn, commitments, Basel III)1 (€ bn, commitments, Basel III)1 Avg. LTV Avg. LTV 09/23: 52% / 12/23: 53% / 09/24: 56% 09/23: 52% / 12/23: 53% / 09/24: 56% 68% 62% 61% 55% 60% 53% 52% 58% 52% 56% 56% 56% 50%
Slide 47: REF Portfolio – LTV Cluster
REF PORTFOLIO – LTV CLUSTER1 LTV development reflects market environment Total REF portfolio Office (€ mn, commitments, Basel III) Avg. LTV1: 09/23: 52% / 12/23: 53% / 09/24: 56% (€ mn, commitments, Basel III) Avg. LTV1: 09/23: 54% / 12/23: 56% / 09/24: 61% Volume € bn: 09/23: 27.8 / 12/23: 28.6 / 0
Slide 48: REF Portfolio: Sub-segments (Office)
REF PORTFOLIO Sub-segments Property Regions Evaluation of current situation Challenges Risk positioning Office demand in Europe is still weak as a result Cooling of tenant market due to overall economic Focus on good locations in main European of both a weak economy and space savings. The situ
Slide 49: REF Portfolio: Sub-segments (Logistics)
REF PORTFOLIO Sub-segments Property Regions Evaluation of current situation Challenges Risk positioning E-commerce and the need for more resilient Monoline logistics centres depending on Strategic approach; expert team since 2014; supply chains is still driving occupier demand, particular clie
Slide 50: REF Portfolio: Sub-segments (Retail)
REF PORTFOLIO Sub-segments Property Regions Evaluation of current situation Challenges Risk positioning Lower inflation and improving real earnings help Short Term: threats to income stability as well as Selective approach with consequent mitigating declines in sales volumes although decreasin
Slide 51: REF Portfolio: Sub-segments (Residential)
REF PORTFOLIO Sub-segments Property Regions Evaluation of current situation Challenges Risk positioning The market of owner-occupied properties is Increased interest level puts pressure on value, Portfolio volume of € 5.0 bn with avg. LTV of expected to recover further as inflation and however
Slide 52: Focus: Office Performing
Office portfolio well diversified by regions with US FOCUS: OFFICE PERFORMING share of 20% Portfolio Performing Office portfolio reduced by € 1.8 bn (Q3/24: € 0.5 bn) through € bn (EaD, Basel III) Repayments & others (9M/24: € 1.0 bn; Q3/24: € 0.1 bn) 15.9 Transfer to NPL (9M/24: € 0.5 bn; Q3/
Slide 53: Focus: Office NPL
FOCUS: OFFICE NPL Pressure on office NPL portfolio only from US loans Non-Performing Portfolio Decrease of Office NPL portfolio due to active NPL management € mn (EaD, Basel III) Q3/24: 3 reductions due to active NPL management 1 loan (€ 75 mn) restructured (US loan) +18 -253 2 loans (€ 55
Slide 54: NPL Portfolio: Active restructuring/work-out ongoing
NPL PORTFOLIO Active restructuring/work-out ongoing Geographical breakdown Breakdown by property type € mn (EaD, Basel III) € mn (EaD, Basel III) 1,684 1,684 1,602 1,602 1,535 1,535 156 264 207 164 230 199 268 187 339 Others & Guaranteed 253 436 588 364 259 Others Hotel France 404 Logistics CEE Resi
Slide 55: Portfolio: Non-Core Unit (PIF & VP)
PORTFOLIO Non-Core Unit (PIF & VP) Regions Borrower classification1 31/12/2023: € 13.2 bn 30/09/2024: € 11.4 bn 31/12/2023: € 13.2 bn 30/09/2024: € 11.4 bn Supranational 1% Supranational 1% Finland <1% Other Europe 3% Finland <1% Other Europe 3% Financial Institution 2% Corporation 1% Financial Inst
Slide 56: Portfolio: Consolidation and Adjustments (C&A)
PORTFOLIO Consolidation and Adjustments (C&A) Regions Borrower classification2 Internal ratings (EL classes) 31/12/2023: € 5.1 bn 31/12/2023: € 5.1 bn 31/12/2023: € 5.1 bn Sweden <1% Other Europe UK <1% Other Rest of World Supra Corporation 2% 6-8 USA <1% <1% 8% Financial 8% Poland 1% 7% Italy 3% In
Slide 57: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials & Outlook 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG Contact Details Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 57
Slide 58: Funding and Liquidity: Capital market funding focused on Pfandbrief
FUNDING AND LIQUIDITY Capital market funding focused on Pfandbrief New long-term funding1 € bn 3M/24: Pfandbrief funding well ahead of 2024 needs 6M/24: 9M/24: 9M/23: € 2.8 bn € 0.8 bn € 1.2 bn € 2.0 bn Markets open for public issues and private placements – € 450 mn taps of EUR Benchmarks since
Slide 59: Funding and Liquidity: Diversified funding base
FUNDING AND LIQUIDITY Diversified funding base Diversified Funding Base Unsecured Funding Retail Deposits 30/09/2024: € bn, nominal values Wholesale Unsecured 4.1 18% 26% 0.5 40% 2.2 48% 49% 15.2 82% 5.8 74% 60% 52% 51% € 43.5 bn 12/19 12/22 12/23 06/24 09/24 7.8 6.4 1.5 Over 50% resilient secured
Slide 60: Mortgage Cover Pool
MORTGAGE COVER POOL Diversification by countries and property types Mortgage Cover Pool Regions Property types Key metrics Spain 1.7% Switzerland 0.3% Austria 1% Italy 0.4% Benelux Mortgage cover pool (nominal) 30/09/2024 Nordic countries 4% Other 6% Pfandbriefe outstanding € 15.9 bn 24% Cover funds
Slide 61: ISC and the effect of the Mortgage Lending Value – Pfandbrief Cover Pool
ISC and the effect of the Mortgage Lending Value – PFANDBRIEF COVER POOL very simplified example! Interest Service Cover Loan-to-Value Ratio (explanatory calculation for existing loans) Loan Valuation Refinancing MV € 100 mn € 4.0 mn rent p.a. at 4% property yield Borrower’s Difference results in a
Slide 62: Funding: Own Funds and Eligible Liabilities exceed regulatory requirements
Own Funds and Eligible Liabilities exceed regulatory FUNDING requirements € bn Buffer for Senior Preferred (SP) MREL2 Composition of Rundown investors due to high volume of capital (30/09/2024) Liabilities instruments and Senior Non-Preferred (SNP) liabilities (30/09/2024) Existing Senior Non-Pr
Slide 63: Mandated Ratings
MANDATED RATINGS Bank ratings S&P Long-term BBB- Outlook/Trend Negative 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 Pfandbrief Aa1 Public Sec
Slide 64: Appendix
APPENDIX 1. CMD Strategy Update 2. Financials & Outlook 3. REF New Business 4. Portfolio profile 5. Funding & Ratings 6. ESG Contact Details Results Q3/9M 2024 (IFRS, pbb Group, unaudited), 13 November 2024 / © Deutsche Pfandbriefbank AG 64
Slide 65: ESG Programme provides for holistic approach
ESG ESG Programme provides for holistic approach ESG Programme ESG at core of pbb’s strategy: pbb can help to reduce the real estate sector`s significant CO2 impact Green finance bank and transformation partner Current KPIs set initial roadmap for establishing green products, science-based d
Slide 66: pbb continues to execute on its ESG strategy
ESG pbb continues to execute on its strategy 2021: 2017: 2020: Holistic organisational set-up of 1st Non-financial Report Introduction of Green ESG Programmme (NFRD) Bond Framework Introduction of green building Focus on scoring model & pbb Green Loan Transparency of Framework pbb‘s portfolio and pb
Slide 67: Green Loan Criteria
pbb Green Loan Framework aligned with current regulatory and GREEN LOAN market developments – specific metrics defined for each criterion pbb Scoring Model EU Taxonomy MAX SCORE: 100 Points III. Additional Sustainability I. Energy Efficiency II. Building Certification Factors Energy demand/-consum
Slide 68: Continued progress in sustainable finance activities
ESG Continued progress in sustainable finance activities Green share of REF portfolio1 (commitments, green loan eligible assets, %) 80% of REF portfolio scored – scoring of remaining portfolio ongoing Green share of total REF portfolio currently at 26% resp. 30% € 7.6 bn (32% based on scored por
Slide 69: Definition of Borrower Classifications
DEFINITION OF BORROWER CLASSIFICATIONS Borrower classification Definition Sovereign Direct and indirect obligations of Central Governments, Central Banks and National Debt Agencies Sovereign (related) Indirect obligations of Non Sovereigns with an explicit first call guarantee by a Sovereign Regiona
Slide 70: Contact Details
CONTACT DETAILS Grit Beecken Axel Leupold Head of Communications, Marketing and Investor Relations Investor Relations/Rating Agency Relations +49 (0)89 2880 28787 +49 (0)89 2880 23648 grit.beecken@pfandbriefbank.com axel.leupold@pfandbriefbank.com Michael Heuber Head of Investor Relations/Rating Age
Deutsche Pfandbriefbank — 9M 2024 Earnings Presentation on 6ix