Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Q3 2010 Earnings Presentation
25 slides from Deutsche Pfandbriefbank's earnings presentation, Nov 16, 2010
Slide 1: Results Q3 2010
Results Q3 2010 IMPORTANT NOTE: The Results Q3 2010 do not yet include the asset transfer to FMS-WM as of Oct 1, 2010 Investor Relations Presentation November 16, 2010
Slide 2: HRE Group Overview
HRE Group Overview Q3 2010 pre-tax loss reduced to EUR -408 mio (Q3 2009: EUR -709 mio), primarily driven by lower loan-loss provisions required for real estate loans in 2010 – in Q3, even a release of EUR 2 mio (Q3 2009: EUR -810 mio) Main negative effects in Q3 2010: ► EUR -139 mio expenses (net c
Slide 3: HRE Group Overview
HRE Group Overview Utilisation of SoFFin liquidity guarantees increased to EUR 91 bn (30/06/2010: EUR 89 bn), mainly driven by market effects as well as additional needs in Q3 2010 to secure the asset transfer to FMS- WM After Sep 30, 2010, all SoFFin guaranteed bonds (EUR 124 bn) have been transfer
Slide 4: HRE Group Income statement (IFRS)
HRE Group Income statement (IFRS) Income statement EUR millions ► Net interest income lower in 2010 due to less gains from sale of assets, pre-payments Q3 2009 9M 2009 Q3 2010 9M 2010 and redemption of liabilities – moreover, last year’s income was positively driven by Operating revenues 244 512 -24
Slide 5: HRE Group Loan-loss provisions
HRE Group Loan-loss provisions P&L: Total additions to loan-loss provisions (Q3 2010) EUR millions 3 6 -7 0 2 ► In Q3 2010, EUR -233 mio gross additions to individual loan-loss provisions, primarily resulting from real estate loans Individual ► However, EUR 157 mio release due to asset sales, pick u
Slide 6: Market environment
HRE Group Market environment European Office Property Clock: Q4 2009 European Office Property Clock: Q3 2010 Source: Jones Lang LaSalle Source: Jones Lang LaSalle Copenhagen, Edinburgh, Hamburg, Luxemburg Bucharest, Lisbon Rental Growth Rents Milan, Rome, Budapest Rental Growth Rents Slowing Falling
Slide 7: Balance sheet (IFRS): assets and liabilities identified for transfer to FMS-WM
HRE Group Balance sheet (IFRS): Assets and liabilities identified for transfer to FMS-WM have been classified as ‘disposal groups’ in accordance with IFRS 5 Total assets Total equity and liabilities EUR billions EUR billions 384 384 360 14 360 14 Trading assets 11 Trading liabilities 11 149 Liabilit
Slide 8: Capitalisation
HRE Group Capitalisation Risk-weighted assets (RWA) Market risk EUR billions Operational risk 81.0 75.5 Counterparty risk ► As of Sep 30, 2010, RWA reduced to EUR 75.5 bn, primarily due to sale of assets and 2.9 2.7 1.8 FX effects 1.3 ► Tier I capital as of Sep 30, 2010 (not yet including 9M/2010 lo
Slide 9: pbb Deutsche Pfandbriefbank (sub-group)
pbb Deutsche Pfandbriefbank (sub-group) IMPORTANT NOTE: The Results Q3 2010 do not yet include the asset transfer to FMS-WM as of Oct 1, 2010
Slide 10: pbb Overview
pbb Deutsche Pfandbriefbank (sub-group) Overview Income statement pbb profitable in Q3 2010 – pre-tax profit of EUR 119 mio (Q3 2009: EUR -321 mio) primarily driven by much lower loan-loss provisions (Q3 2010: EUR -17 mio; Q3 2009: EUR -631 mio) Main further effects in Q3 2010: – EUR +41 mio positiv
Slide 11: pbb Income statement (IFRS)
pbb Deutsche Pfandbriefbank (sub-group) Income statement (IFRS) Income statement Net interest income lower in 2010 – last year’s income was positively driven by Q3 9M Q3 9M EUR millions higher gains from sale of assets, pre-payments and redemption of liabilities 20091 20091 2010 2010 Net commission
Slide 12: pbb Loan-loss provisions
pbb Deutsche Pfandbriefbank (sub-group) Loan-loss provisions P&L: Additions to loan-loss provisions (Q3 2010) In Q3 2010, EUR -220 mio gross additions to individual loan-loss provisions, by business segments, EUR millions primarily resulting from real estate loans 3 14 -26 0 -17 However, EUR 140 mio
Slide 13: Problem & watchlist loans
pbb Deutsche Pfandbriefbank (sub-group) Problem & watchlist loans Total problem & watchlist loans Total problem loans EaD, EUR billions EaD, by business segments, EUR billions 13.3 8.5 Workout 1 PSF/VP 0.1 0.7 Restructuring2 Watchlist3 IO N AL VIS REF 8.4 PRO 1.2 7.7 0.1 1.1 ION AL V IS 30/09/2010 P
Slide 14: Implications from asset transfer to FMS-WM on income statement
pbb Deutsche Pfandbriefbank (sub-group) Implications from asset transfer to FMS-WM of Oct 1, 2010 on income statement going forward Lower income base as interest bearing assets have been transferred Expenses for SoFFin liquidity support will run off Significantly reduced need for loan-loss provision
Slide 15: pbb Balance sheet (IFRS): disposal group
pbb Deutsche Pfandbriefbank (sub-group) Balance sheet (IFRS): Assets and liabilities identified for transfer to FMS-WM have been classified as ‘disposal group’ in accordance with IFRS 5 Total assets Total equity and liabilities EUR billions EUR billions 226 226 215 215 1 1 Trading liabilities 2 Trad
Slide 16: New business
pbb Deutsche Pfandbriefbank (sub-group) New business Total new business (commitments) Total new business (9M 2010) EUR billions 4.0 PSF REF PSF 0.7 No. of deals 18 51 2.8 Total volume EUR 0.4 bn EUR 2.4 bn 0.4 New commitments EUR 0.4 bn EUR 0.8 bn REF1 3.3 Extensions >1year - EUR 1.6 bn 2.4 Average
Slide 17: Summary
pbb Deutsche Pfandbriefbank (sub-group) Summary The asset transfer to FMS Wertmanagement was the key milestone to establish pbb Deutsche Pfandbriefbank as new bank with a clearly defined business model and focused strategy pbb significantly de-risked and de-leveraged Conservative funding profile wit
Slide 18: Outlook
pbb Deutsche Pfandbriefbank (sub-group) Outlook After the asset transfer to FMS-WM as of Oct 1, pbb expected to be profitable in Q4 – however, full-year result 2010 will still show a loss Furthermore, as already stated pbb expected to be profitable in 2011 The Tier I ratio1 is expected to be >10% Th
Slide 19: APPENDIX pbb Deutsche Pfandbriefbank (sub-group)
APPENDIX pbb Deutsche Pfandbriefbank (sub-group)
Slide 20: Balance sheet (IFRS): Disposal group
pbb Deutsche Pfandbriefbank (sub-group) Balance sheet (IFRS): Disposal group Disposal group: Assets Disposal group: Equity and liabilities EUR billions EUR billions 30/09/2010 30/09/2010 Trading assets 1 Trading liabilities 2 Loans and advances (Public Sector, Real Estate and other) 97 Liabilities t
Slide 21: APPENDIX HRE Group
APPENDIX Hypo |mReal Estate HRE Group enw’
Slide 22: Problem & watchlist loans
HRE Group Problem & watchlist loans Total problem & watchlist loans Total problem loans EaD, EUR billions EaD, by business segments, EUR billions 15.5 9.3 Workout 1 PSF/VP 0.9 0.8 Restructuring2 Watchlist3 IO N AL VIS REF 8.4 PRO 8.5 1.3 0.2 1.1 ION AL V IS 30/09/2010 Pro-forma PRO after asset trans
Slide 23: Balance sheet (IFRS): Disposal groups
HRE Group Balance sheet (IFRS): Disposal groups Disposal group: Assets Disposal group: Equity and liabilities EUR billions EUR billions 30/09/2010 30/09/2010 Trading assets 2 Trading liabilities 2 Loans and advances (Public Sector, Real Estate and other) 99 Debt securities 18 Allowances for losses o
Slide 24: Contact details Investor Relations
Contact details Investor Relations Ulrich Kern +49 (0)89 2880 28780 (Head) ulrich.kern@pfandbriefbank.com Frank Ertz +49 (0)89 2880 28776 frank.ertz@pfandbriefbank.com Michael Heuber +49 (0)89 2880 28778 michael.heuber@pfandbriefbank.com www.pfandbriefbank.com/investor-relations.html 24 Results Q3 2
Slide 25: Important notice
Important notice 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
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