Deutsche Pfandbriefbank AG · XETR:PBB

Deutsche Pfandbriefbank — FY2018 Earnings Presentation

14 slides from Deutsche Pfandbriefbank's earnings presentation, Feb 28, 2019

  1. Slide 1: Strong full-year 2018 results with PBT of EUR 215 mn

    Strong full-year 2018 results with PBT of EUR 215 mn Annual Media Briefing 28 February 2019 Andreas Arndt CEO/CFO Deutsche Pfandbriefbank AG

  2. Slide 2: Highlights: Operating and financial overview

    Highlights Operating and financial overview New business Q4 Net interest and commission income General and admin. expenses € bn (commitments, incl. extensions >1 yr) Q3 € mn (IFRS) € mn (IFRS) Q2 New structure (IFRS9) New structure (IFRS9) Q1 47% 44% 11.6 443 456 216 CIR1 10.5 10.5 412 415 198 199 1

  3. Slide 3: NII up +11% y-o-y with strong Q4/18

    Financials NII up +11% y-o-y with strong Q4/18 – reduced funding costs and higher avg. strategic financing volume Income from lending business (€ mn) Key drivers Q4/FY 2018: Q4/17 Q4/18 FY17 FY18 NII continued to benefit from solid underlying drivers Net interest income 109 116 407 450 − Funding cos

  4. Slide 4: Continued low level of risk costs despite additions for UK shopping center

    Financials Continued low level of risk costs despite additions for sub segment UK shopping center Net income from risk provisioning Key drivers Q4/FY 2018: € mn Risk provisioning well below initial planning, driven by the following effects: Q4/17 Q4/18 FY17 FY18 (a) Overall portfolio provisioning st

  5. Slide 5: Operating costs slightly down y-o-y with expected increase in Q4/18

    Financials Operating costs slightly down y-o-y with expected increase in Q4/18 General & administrative expenses and depreciations € mn Key drivers Q4/FY 2018: Q4/17 Q4/18 FY17 FY18 GAE slightly down y-o-y (-3%) – increase in Q4/18 as expected General admin. expenses -58 -57 -199 -193 − Personnel ex

  6. Slide 6: Dividend 2019

    Dividend 2019 Shareholders to participate from continued strong performance – management intends to propose dividend of € 1.00 (Payout ratio of 81%1) Profit attributable to shareholders Dividend proposal 2018 € mn (IFRS) -17% Dividend strategy: 50% regular dividend + 25% 215 supplementary dividend f

  7. Slide 7: Capital: Capitalisation remains strong

    Capital Capitalisation remains strong – adequate buffers, essential for regulatory changes, operational stability and strategic flexibility Basel III: RWA Basel III: Capital ratios (fully-loaded) € bn (IFRS) % (IFRS) Strong new business / Positive strat. portfolio growth Ambition LGD changes in % 12

  8. Slide 8: New business & segment reporting

    New business & segment reporting REF: Strong new business origination while maintaining selective and risk conservative approach – financing volume up +8% y-o-y REF new business 2017 2018 € bn 10.7 REF: Income statement (IFRS, € mn) Q4/175 Q4/18 FY175 FY18 9.5 9.5 Operating income 97 101 368 391 Tot

  9. Slide 9: Funding costs significantly reduced y-o-y

    Funding Funding costs significantly reduced y-o-y –investor base continuous to grow with FX Pfandbriefe and “new” senior preferred bonds successfully issued New long-term funding1 € bn Pfandbriefe 12M/17: € 6.1 bn2 12M/18: € 5.2 bn3 Mortgage Pfandbrief Benchmarks: € 750 mn 5y, € 500 mn 6y, € 500 mn

  10. Slide 10: Regulatory requirements: Challenges for banks and capital

    Regulatory requirements Challenges for banks and capital Basel III: Capital ratios % (IFRS) Ongoing process SREP (2019) Mid-term targets TRIM 9.85%1 Finalisation in 2019 expected CET 1 >12.5% 18.5% Tier 1 >16% 20.5% Calibration of risk parameters Total Consideration of every defaulted loans, not jus

  11. Slide 11: Digital transformation strategy

    Digital transformation strategy Digitalisation as an integral concept in pbb Clients Efficiency Income sources 1 Short to mid- term value added in core process Focus on clients and efficiency 2 Digital Transformation 2 Develop business model and Develop new products • Evaluation of cooperation in in

  12. Slide 12: Focus & Invest

    Focus & Invest Pushing forward strategic initiatives to strengthen market position and support profitability Reorganisation of PIF business Change of PIF strategy from „Growth“ to „Hold“ as consequence of high competition, few opportunities and low margins Focus on business in France (operated from

  13. Slide 13: Outlook 2019

    Outlook 2019 Operating trends 2017 2018 Guidance 2019 Real Estate Finance (REF) New business volume1 (EUR bn) 10.7 9.5 EUR 8.5-9.5 bn Avg. gross margin (bp) >155 ~155 Slightly lower Financing volume (EUR bn) 24.9 26.8 Moderate increase (strategic portfolio) Public Investment Finance (PIF) Avg. gross

  14. Slide 14: 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 regis

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