Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Q3 2012 Earnings Presentation
37 slides from Deutsche Pfandbriefbank's earnings presentation, Nov 13, 2012
Slide 1: Results Q3 2012: pbb well on track with pre-tax profit of EUR 49 mio
Analyst/Investor Presentation Results Q3 2012: pbb well on track with pre-tax profit of EUR 49 mio UNAUDITED FIGURES Results Q3 2012, 13th November 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: Q3 Highlights
Q3 Highlights Financials New business Pre-tax profit of EUR 49 mio (Q2: EUR 30 mio; Q1: EUR 21 mio) – nine-month pre-tax profit of EUR 100 mio already at lower end of full-year target range of EUR 100-140 mio New business gained momentum with a volume of EUR 1.4 bn following a restrictive approach F
Slide 4: Income statement
Income statement Financials Nine-month pre-tax profit of EUR 100 mio already at lower end of full-year target range of EUR 100-140 mio New business Income statement (IFRS) EUR millions Net interest income suffers from a Q1 2012 Q2 2012 Q3 2012 9M 2012 declining nominal asset base as well Operating r
Slide 5: Balance sheet
Balance sheet Financials Operating balance sheet size of EUR 99 bn remains well below year-end limit of EUR 105 bn required by the EU New business Total assets (IFRS) EUR billions -42% 187 Counter-effects resulting from the asset transfer to FMS-WM -4% -4% Operating balance sheet Funding 74 109 105
Slide 6: Capitalisation
Capitalisation Financials Tier I ratio (pro-forma) at 17.4% 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 in Sec. 2a KWG (Germa
Slide 7: New business
New business Financials New business gained momentum in Q3 with a volume of EUR 1.4 bn following a restrictive approach end of last year/beginning of this year New business Total new business (incl. extensions >1 yr) EUR billions In line with successful funding activities, new PIF 1.4 2.9 deal pipel
Slide 8: Real Estate Finance: New business written at high margins and low LTVs
New business Financials Real Estate Finance (REF): New business written at high margins and low LTVs New business New business: REF New commitments by region (9M 2012) EUR billions Extensions >1 year Spain2 Austria 6.3 Scandinavia 7% 5% CEE Germany Funding 3.5 1% 36% 11% 3.1 2.5 1.4 16% 2.8 1.6 Fran
Slide 9: Public Investment Finance: New business focus on Germany and France
New business Financials Public Investment Finance (PIF): New business focus currently on Germany and France New business New business: PIF New commitments by region (9M 2012) EUR billions UK 1.7 5% Germany 31% Funding 1.0 64% France 0.4 Cover pools FY 20101 FY 20111 9M 2012 by counterparty type (9M
Slide 10: pbb strengthens origination presence in Scandinavia and Germany
New business Financials pbb strengthens origination presence in Scandinavia and Germany New business Real Estate Finance (REF) Public Investment Finance (PIF) Core countries with sales locations New sales location for Scandinavian market Funding Other strategic countries Countries Sales locations Mu
Slide 11: Funding
Funding Financials Successful funding activities this year highlighted by first public issue of an EUR 500 mio senior unsecured benchmark bond in September New business Funding activities successful this year with total New long-term funding volumes 9M 2012 EUR billions long-term funding volume of E
Slide 12: All recent issues with good performance in the secondary market
Funding Financials All recent issues with good performance in the secondary market New business Public issuances 9M 2012 Type WKN Launch date Maturity Volume Spread1 Coupon Issue/reoffer price Mortgage Pfandbrief A1K0RS 10.01.2012 18.01.2016 EUR 500 mio +75bp 2.250% 99.970% Mortgage Pfandbrief (1. T
Slide 13: Cover pools: Total outstanding Pfandbrief volume slightly increased
Cover pools Financials Total outstanding Pfandbrief volume slightly increased to EUR 46 bn, reflecting recent mortgage Pfandbrief issuances New business Largest Pfandbrief issuers 30/09/2012: EUR billions (outstanding, nominal) 64 Mortgage Pfandbriefe pbb’s outstanding Pfandbrief volume started #2 t
Slide 14: Over-collateralisation in cover pools
Cover pools Financials Previously excessive over-collateralisation in the mortgage cover pool provided basis for new Pfandbrief issuances in Q3 New business Mortgage cover pool: Total cover funds Public Sector cover pool: Total cover funds EUR billions (nominal) EUR billions (nominal) Over-Collatera
Slide 15: Total portfolio
Total portfolio Financials Total portfolio (EaD) slightly down to EUR 80 bn, mainly reflecting higher maturities than new business volumes New business Total portfolio EUR billions (EaD)1,2 82 81 80 C&A 9 12 14 Cons. & Adjust. C&A C&A VP 2 1 1 Value Portfolio VP Funding Public Budget Non-strategic F
Slide 16: Exposure in selected countries
Exposure in selected countries Financials Non-REF: Exposure to southern-European peripheral countries further reduced in Q3 due to maturities New business Non-REF: Exposure in selected countries by counterparty types EUR billions (EaD)1 5.0 4.5 4.5 4.1 4.3 4.1 Funding 3.0 2.2 2.2 2.0 2.2 2.2 2.0 0.3
Slide 17: Problem loans
Problem loans Financials Total problem loans reduced in Q3 due to active management New business Total problem loans Non-REF REF problem loans Workout loans1 EUR billions (EaD) EUR billions (EaD) REF Restructuring loans2 1.6 1.5 1.4 0.1 1.3 0.0 1.2 1.3 1.2 0.1 1.2 0.0 Funding 0.1 0.0 0.0 0.0 1.5 1.5
Slide 18: Summary and outlook
Summary and outlook Financials New business After nine month, pre-tax profit of EUR 100 mio already at lower end of full-year target range of EUR 100-140 mio New business gained momentum in Q3 following a restrictive approach at the end of last year/ Funding beginning of this year and is expected to
Slide 19: Appendix
Appendix Results Q3 2012, 13th November 2012
Slide 20: 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 Q2 2012 Q3 2012 9M 2012 Operating revenues 652 131 162 129 104 526 103 120 130 353 Net interest and similar income 600 97 95 101 78 371 76 74 72 222 Net co
Slide 21: 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 -7% -7% Liabilities to other banks 80 Funding Loans and advances 109 and customers 101 109 (Public Sector, Rea
Slide 22: Business model and strategy: 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 23: Business model and strategy: 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 24: Real Estate portfolio: Exposure by region
Portfolio Financials Real Estate portfolio New business Exposure by region EUR billions (EaD) 13.1 12.1 31/12/2011 / Total: EUR 25.2 bn 30/09/2012 / Total: EUR 24.0 bn Funding 3.0 3.2 2.6 2.5 2.2 2.2 1.7 1.6 Cover pools 0.8 0.6 0.6 0.5 0.5 0.5 0.3 0.2 0.2 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.3
Slide 25: Real Estate portfolio: Exposure by loan type
Portfolio Financials Real Estate portfolio New business Exposure by loan type EUR billions (EaD) 23.4 22.3 31/12/2011 / Total: EUR 25.2 bn 30/09/2012 / Total: EUR 24.0 bn Funding Cover pools 1.0 0.9 0.8 0.7 0.1 0.0 Investment loans Development loans Customer derivatives Others 31/12/2011 30/09/2012
Slide 26: Real Estate portfolio: Exposure by property type
Portfolio Financials Real Estate portfolio New business Exposure by property type EUR billions (EaD) 8.9 7.8 31/12/2011 / Total: EUR 25.2 bn 7.1 7.0 30/09/2012 / Total: EUR 24.0 bn Funding 5.2 5.0 2.7 2.4 1.4 1.2 Cover pools 0.3 0.3 Office Retail/ Residential Warehouse/ Hotel/ Others Shopping Logist
Slide 27: 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) 1-5 AAA to A- 6-8 BBB+ to BBB- 4.7 9-11 BB+ to BB- 31/12/2011 / Total: EUR 25.2 bn 4.0 12-14 B+ to B- 30/09/2012 / Total: EUR 24.0 bn 3.5 3.6 3.4 15-18 CCC+ and below 3.3 3.2 3
Slide 28: Non-Real Estate portfolio: Exposure by region
Portfolio Financials Non-Real Estate portfolio New business Exposure by region EUR billions (EaD)1,2 26.5 24.1 31/12/2011 / Total: EUR 56.8 bn 30/09/2012 / Total: EUR 55.7 bn Funding 6.9 6.3 5.2 5.5 5.0 4.5 4.2 4.0 2.1 2.3 Cover pools 2.0 1.6 1.8 1.8 1.0 0.8 1.0 0.7 1.0 0.2 0.8 0.8 0.6 0.6 0.3 0.3 0
Slide 29: 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 16.3 16.2 15.3 31/12/2011 / Total: EUR 56.8 bn 14.3 30/09/2012 / Total: EUR 55.7 bn 12.0 11.8 12.2 10.2 Funding Cover pools 2.5 1.3 0.0 0.2 Local Authorities Sovereign3,4 Financial Institu
Slide 30: 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- 52.1 8-10 BBB+ to BBB- 11-13 BB+ to BB- 45.2 31/12/2011 / Total: EUR 56.8 bn 14-22 B+ to B- 30/09/2012 / Total: EUR 55.7 bn 23-27 CCC+ to CCC- 28-30 D Fundin
Slide 31: Mortgage cover pool
Cover pools Financials Mortgage cover pool New business Cover funds by region Mortgage cover pool (Nominal) 31/12/2011 30/09/2012 EUR billions (Nominal) Pfandbriefe outstanding EUR 14.7 bn EUR 14.5 bn 10.5 Cover funds EUR 21.5 bn EUR 19.3 bn 9.5 31/12/2011 / Total: EUR 18.9 bn1 Over-collateralisatio
Slide 32: 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 6.7 31/12/2011 / Total: EUR 18.9 bn1 30/09/2012 / Total: EUR 18.3 bn1 5.3 4.8 Funding 4.4 4.0 2.5 2.3 Cover pools Office Retail/Shopping Residential Others2 31/12/2011 30/09/2012 Portfolio
Slide 33: Mortgage cover pool: Maturity profile
Cover pools Financials Mortgage cover pool New business Maturity profile1 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 30/09/2012: EUR
Slide 34: Public Sector cover pool quality considerably improved
Cover pools Financials Public Sector cover pool: Cover pool quality considerably improved due to active cover pool management New business Cover funds by region Public Sector cover pool (Nominal) 31/12/2011 30/09/2012 EUR billions (Nominal) Pfandbriefe outstanding EUR 33.7 bn EUR 31.4 bn Cover funds
Slide 35: Public Sector cover pool: Cover funds by counterparty type
Cover pools Financials Public Sector cover pool New business Cover funds by counterparty type EUR billions (Nominal) 13.0 13.2 12.4 11.5 31/12/2011 / Total: EUR 35.7 bn1,2 30/09/2012 / Total: EUR 34.6 bn1,2 8.8 8.4 Funding Cover pools 1.6 1.4 Regional authorities Central governments Local authoritie
Slide 36: Public Sector cover pool: Maturity profile
Cover pools Financials Public Sector cover pool New business Maturity profile1 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 30/09/20
Slide 37: 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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