Deutsche Pfandbriefbank Ag · XETR:PBB

Deutsche Pfandbriefbank — Q3/9M 2023 Earnings Presentation

14 slides from Deutsche Pfandbriefbank's earnings presentation, Nov 7, 2023

  1. Slide 1: Preliminary Results Q3/9M 2023

    Preliminary Results Q3/9M 2023 7 November 2023

  2. 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

  3. Slide 3: Highlights Q3/9M 2023: pbb increases LLPs and is full on track to deliver on 2026 targets

    HIGHLIGHTS Q3/9M 2023 pbb increases LLPs and is full on track to deliver on 2026 targets pbb adjusts PBT full-year guidance for 2023 to € 90-110 mn due to increased risk provisioning and substantial business invest In reaction to the ongoing weak CRE markets (esp. in the US), pbb follows its risk co

  4. Slide 4: Operating & Financial Overview: pbb proves operative resilience

    OPERATING & FINANCIAL OVERVIEW pbb proves operative resilience REF New business Net interest and commission income General and admin. expenses € bn (commitments, incl. extensions > 1 yr.) € bn (IFRS) € mn (IFRS) 40% 46% 47% CIR3 9.0 9.0 502 497 2023e: € ~480 mn 2.4 2023e: Q4 127 135 Q4 Q4 3.3 351 20

  5. Slide 5: Risk Provisioning: Significant increase driven by volatile US market

    RISK PROVISIONING Significant increase in risk provisioning mainly driven by volatile US market Most challenging market environment, driven by high interest rates, high inflation, several geopolitical and economic uncertainties as well as structural changes US market more strongly impacted, affectin

  6. Slide 6: Risk provisioning significantly increased by € -83 mn in Q3/23

    RISK PROVISIONING Market volatility reflected in increased risk provisioning Risk provisioning significantly increased by € -83 mn in Q3/23 (9M/23: € -104 mn, 2022: € -44 mn), primarily driven by existing stage 3 US office loans € -95 mn additions in stage 3 (9M/23: € -111 mn) resulting from a limit

  7. Slide 7: NPL Portfolio: Increase driven only by a few new cases, mainly in the US

    NPL PORTFOLIO Increase in NPL portfolio volume driven only by a few new cases, mainly in the US Non-performing loans – regions Total NPL portfolio € mn (EaD, Basel III) 2.7%  NPL increase reflects stressed market environment, esp. high volatility in certain 2.3% 1.6% locations/asset classes in the

  8. Slide 8: REF Portfolio: Overall quality remains solid with avg. LTV of 52%

    REF PORTFOLIO Overall portfolio quality remains solid with avg. LTV of 52% despite recent valuation adjustments Portfolio >300% Ø ISC1,2  Overall portfolio quality remains solid with focus on prime € bn (financing volumes) properties in core inner-city locations and conservative risk 54% 53% 52% 52

  9. Slide 9: Focus: US REF Portfolio reviewed in 2023

    FOCUS: US REF PORTFOLIO Total US portfolio has been reviewed in 2023 Property types Regions  Total US portfolio has been reviewed in 2023, all revaluations 30/09/2023: € 4.9 bn (EaD, Basel III) 30/09/2023: € 4.9 bn (EaD, Basel III) based on external appraisers Boston 2% Retail 1% Seattle 3% Other 2

  10. Slide 10: Capital: pbb intends to move to F-IRBA, CET1 ratio expected at ~15%

    CAPITAL pbb intends to move to F-IRBA – CET1 ratio expected at ~15% after Basel IV introduction RWA Transitional € bn (IFRS) Q3/9M 2023 period BASEL III BASEL IV  Capital ratios down y-o-y due to increased RWA and decreased regulatory capital Largely  RWA increase reflects new REF commitments, ind

  11. Slide 11: Strategic Agenda 2026: pbb full on track to deliver on 2026 targets

    STRATEGIC AGENDA 2026 pbb full on track to deliver on 2026 targets – PBT > € 300 mn, RoE b.t. > 10% REF portfolio (€ bn)  The system works as (€ mn) Loss of  Drop of NII+NCI in 2023 TLTRO & floors due € ~ -70 mn loss of designed: portfolio growth supported by ~ -70 TLTRO & floor income REF Portfol

  12. Slide 12: Strategic Agenda 2026: 2023 year of investment, costs reduced to 2022 level by 2026

    STRATEGIC AGENDA 2026 2023 year of investment – costs to be reduced to 2022 level by 2026  Cost-cutting largely predictable – timewise and (€ mn)  Uplift 2023 resulting from in terms of amount regular inflation-related + -  ~80% of cost reduction expected to materialize salary adjustments and by

  13. Slide 13: Summary: PBT full-year guidance 2023 of € 90-110 mn

    SUMMARY pbb proves operative resilience pbb proves operative resilience in most challenging market environment (CRE, strongly increased/high interest rates, high inflation, several geopolitical and economic uncertainties) Given its sound financial strength, pbb is able to provide for adjusted but si

  14. Slide 14: Contact Details

    CONTACT DETAILS Grit Beecken Axel Leupold Head of Comms, Marketing and IR 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 Agency Relations +49 (0)89 2

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