Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Q2 2011 Earnings Presentation
60 slides from Deutsche Pfandbriefbank's earnings presentation, Aug 11, 2011
Slide 1: Results Q2 2011: pbb profitable with pre-tax profit of EUR 68 mio
Analyst/Investor Presentation Results Q2 2011: pbb profitable with pre-tax profit of EUR 68 mio Results Q2 2011, August 11, 2011
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: Highlights
Highlights pbb Q2 2011 with pre-tax profit of EUR 68 mio marks fourth consecutive profitable quarter Appendix 1 – pbb New business (incl. extensions >1 year) of EUR 1.9 bn in Q2 2011 in line with full-year target of EUR ~8 bn Balance sheet further down to EUR 126 bn (31/03/2011: EUR 155 bn), followi
Slide 4: Income statement
Income statement Q2 2011 with pre-tax profit of EUR 68 mio marks fourth consecutive profitable quarter pbb Income statement (IFRS) Net interest income benefited less from gains from buy-backs of EUR millions Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 debt instruments (Q2 2011: EUR 5 mio, Q1 201
Slide 5: Income statement
Income statement Public Budget Finance will be run down on balance sheet, continuing to generate interest income and to be replaced by higher-margin strategic business over time pbb Public Sector Finance (PSF) Real Estate Finance (REF) Appendix 1 – pbb Public Investment Finance Public Budget Finance
Slide 6: Balance sheet
Balance sheet Operating balance sheet now at EUR 94 bn but expected to increase mid-term pbb Total assets (IFRS) Counter-effects resulting from the asset transfer to FMS-WM EUR billions Operating balance sheet 219 187 -19% Appendix 1 – pbb 106 155 83 126 53 32 113 104 102 94 01/10/2010 31/12/2010 31
Slide 7: Capitalisation
Capitalisation Sufficient capitalisation with a Tier I ratio of 18.0% pbb Pro-forma Risk-Weighted Assets (RWA) Market risk Deutsche Pfandbriefbank AG is according to the ‘Waiver Rule’ regulated in Sec. EUR billions 2a KWG (German Banking Act) not obliged to determine the equity capital ratio Operati
Slide 8: New business
New business New business origination focused on Germany and other European countries – potential to expand local presence in Germany and in Sweden pbb Real Estate Finance (REF) Core countries with sales locations Public Investment Finance (PIF) Core countries with sales locations Potential new loca
Slide 9: New business
New business Total new business of EUR 4.1 bn in H1 2011 in line with full-year target of EUR ~8 bn pbb Total new business1 EUR billions ~8 Public Investment Finance (PIF) Appendix 1 – pbb 4.1 1.9 4.1 PSF 1.0 0.6 1.2 Real Estate (incl. PIF) 2.2 1.3 Finance (REF) 0.6 REF 3.1 2.9 1.6 FY 2010 Q1 2011 Q
Slide 10: New business
New business New business origination successfully re-started at attractive margins pbb Real Estate Finance (REF) Public Sector Finance (PSF) EUR billions EUR billions 3.1 2.9 1.2 1.0 1.4 1.6 Appendix 1 – pbb New commitments 1.7 1.3 Extensions >1 year New commitments FY 2010 H1 2011 FY 2010 H1 2011
Slide 11: Portfolio
Portfolio Envisaged portfolio growth in strategic business areas will compensate for the decline in Public Budget Finance pbb Total portfolio (EaD) Total portfolio reduced by EUR 5 bn (-6%) to EUR 81 bn, primarily reflecting EUR billions maturities (pre-/repayments) in the existing loan portfolio ex
Slide 12: Pfandbrief
Pfandbrief pbb to remain one of the largest issuers in the German Pfandbrief market pbb Total Pfandbriefe outstanding1 (Nominal) 03/2011: EUR billions Ship Pfandbriefe 193 06/2011 Mortgage Pfandbriefe Appendix 1 – pbb Public Sector Pfandbriefe 82 53 52 15 40 40 35 33 31 26 22 38 Eurohypo pbb LBBW DG
Slide 13: Summary and Outlook
Summary and Outlook pbb pbb profitable since one year Appendix 1 – pbb Successful re-start of new business origination at attractive margins and with reduced risk appetite Public Budget Finance will be run down on balance sheet – continues to generate interest income Appendix 2 – DEPFA – to be repla
Slide 14: Contact details
Contact details pbb Communications Walter Allwicher +49 (0)89 2880 28787 walter.allwicher@pfandbriefbank.com Appendix 1 – pbb Investor Relations Frank Ertz +49 (0)89 2880 28776 frank.ertz@pfandbriefbank.com Michael Heuber +49 (0)89 2880 28778 michael.heuber@pfandbriefbank.com Appendix 2 – DEPFA www.
Slide 15: Appendix 1 – pbb
Appendix 1 – pbb Results Q2 2011 Results Q2 2011, August 11, 2011
Slide 16: Agenda
pbb Deutsche Pfandbriefbank Agenda pbb Financial Results Total Portfolio Appendix 1 – pbb Real Estate Portfolio Non-Real Estate Portfolio Cover Pools Appendix 2 – DEPFA Mortgage Cover Pool Public Sector Cover Pool Appendix 3 – HRE Group Results Q2 2011, August 11, 2011 16
Slide 17: Balance sheet
pbb Deutsche Pfandbriefbank Balance sheet pbb Total assets (IFRS) Total liabilities and equity (IFRS) EUR billions EUR billions 226 226 Trading assets 2 Trading liabilities 2 187 187 -19% -19% 16 Liabilities to other banks 16 Appendix 1 – pbb 155 104 and customers 155 Loans and advances 12 12 (Publi
Slide 18: Balance sheet
pbb Deutsche Pfandbriefbank Balance sheet pbb Change Change Assets (IFRS) Equity and liabilities (IFRS) 30.06.20111 31.12.20101 30.06.2011 31.12.2010 EUR millions EUR millions EUR mio % EUR mio % Cash reserve 131 224 -93 -41.5 Liabilities to other banks 23,906 62,587 -38,681 -61.8 Trading assets 9,2
Slide 19: Agenda
pbb Deutsche Pfandbriefbank Agenda pbb Financial Results Total Portfolio Appendix 1 – pbb Real Estate Portfolio Non-Real Estate Portfolio Cover Pools Appendix 2 – DEPFA Mortgage Cover Pool Public Sector Cover Pool Appendix 3 – HRE Group Results Q2 2011, August 11, 2011 19
Slide 20: Real Estate portfolio: exposure by region
pbb Deutsche Pfandbriefbank Real Estate portfolio pbb Exposure by region (EaD)1 EUR billions 14.0 13.7 31/12/2010 / Total: EUR 26.4 bn 30/06/2011 / Total: EUR 24.9 bn Appendix 1 – pbb 2.6 2.6 2.3 2.2 2.0 2.0 1.9 1.7 1.5 0.8 0.7 0.6 0.4 0.4 0.6 0.5 0.3 0.3 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Germ
Slide 21: Real Estate portfolio: exposure by loan type
pbb Deutsche Pfandbriefbank Real Estate portfolio pbb Exposure by loan type (EaD)1 EUR billions 25.0 23.5 31/12/2010 / Total: EUR 26.4 bn 30/06/2011 / Total: EUR 24.9 bn Appendix 1 – pbb 0.8 0.9 0.6 0.5 0.1 0.1 Appendix 2 – DEPFA Investment loans Development loans REF derivatives Others 31/12/2010 3
Slide 22: Real Estate portfolio: exposure by property type
pbb Deutsche Pfandbriefbank Real Estate portfolio pbb Exposure by property type (EaD)1 EUR billions 10.7 31/12/2010 / Total: EUR 26.4 bn 8.82 30/06/2011 / Total: EUR 24.9 bn Appendix 1 – pbb 6.7 6.8 5.9 5.5 2.52 1.8 1.3 1.1 0.2 0.2 Office Retail/ Residential Industrial/ Hotel/ Others Shopping Logist
Slide 23: Real Estate portfolio: exposure by EL classes
pbb Deutsche Pfandbriefbank Real Estate portfolio pbb Exposure by EL classes (EaD)1 EL class S&P rating scale EUR billions 1-5 AAA to A- 6-8 BBB+ to BBB- 5.2 4.8 9-11 BB+ to BB- 4.6 31/12/2010 / Total: EUR 26.4 bn 4.4 12-15 B+ to B- 30/06/2011 / Total: EUR 24.9 bn 16-18 CCC+ and below Appendix 1 – p
Slide 24: Non-Real Estate portfolio: exposure by region
pbb Deutsche Pfandbriefbank Non-Real Estate portfolio pbb Exposure by region (EaD)1 EUR billions 26.2 24.1 31/12/2010 / Total: EUR 59.9 bn 30/06/2011 / Total: EUR 56.1 bn Appendix 1 – pbb 6.8 6.9 5.1 4.9 4.5 4.6 4.1 4.2 2.5 1.5 2.3 2.1 1.7 1.2 1.6 1.3 2.0 1.9 1.2 1.4 0.9 0.9 0.7 0.6 0.3 0.4 0.0 0.0
Slide 25: Non-Real Estate portfolio: exposure by counterparty type
pbb Deutsche Pfandbriefbank Non-Real Estate portfolio pbb Exposure by counterparty type (EaD)1 EUR billions 16.9 15.6 31/12/2010 / Total: EUR 59.9 bn 14.7 13.6 30/06/2011 / Total: EUR 56.1 bn 12.3 12.3 Appendix 1 – pbb 9.9 10.34 3.45 2.85 1.7 1.24 0.9 0.3 PSE2 GRC/GRI3 Appendix 2 – DEPFA Local Autho
Slide 26: Non-Real Estate portfolio: exposure by PD class
pbb Deutsche Pfandbriefbank Non-Real Estate portfolio pbb Exposure by PD class (EaD)1 PD class S&P rating scale EUR billions 1-7 AAA to A- 58.1 8-10 BBB+ to BBB- 11-13 BB+ to BB- 52.4 31/12/2010 / Total: EUR 59.9 bn 14-22 B+ to B- 30/06/2011 / Total: EUR 56.1 bn 23-27 CCC+ to CCC- Appendix 1 – pbb 2
Slide 27: Exposure in selected countries
pbb Deutsche Pfandbriefbank Exposure in selected countries pbb PSF: Sovereign exposure (EaD)1 REF: Real Estate exposure (EaD)1 EUR billions EUR billions 31/12/2010 XX Avg maturity in years 31/12/2010 30/06/2011 30/06/2011 Appendix 1 – pbb 2.9 2.8 0.4 0.4 0.3 0.3 0.3 0.3 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0
Slide 28: Total problem loans
pbb Deutsche Pfandbriefbank Total problem loans pbb Total problem loans (EaD) Non-REF Total problem loans stable – EUR 1.3 bn problem loans consist of 95 individual cases EUR billions (31/03/2011: 93), which are adequately covered by loan-loss provisions REF – Non-REF: EUR 0.1 bn – coverage ratio ~5
Slide 29: Agenda
pbb Deutsche Pfandbriefbank Agenda pbb Financial Results Total Portfolio Appendix 1 – pbb Real Estate Portfolio Non-Real Estate Portfolio Cover Pools Appendix 2 – DEPFA Mortgage Cover Pool Public Sector Cover Pool Appendix 3 – HRE Group Results Q2 2011, August 11, 2011 29
Slide 30: Mortgage cover pool
pbb Deutsche Pfandbriefbank Mortgage cover pool pbb Cover funds by region Mortgage cover pool (Nominal) 31/12/2010 30/06/2011 EUR billions (Nominal) Pfandbriefe outstanding EUR 17.4 bn EUR 14.8 bn 11.5 11.2 Cover funds EUR 22.7 bn EUR 21.0 bn 31/12/2010 / Total: EUR 20.8 bn1 Over-collateralisation (
Slide 31: Mortgage cover pool
pbb Deutsche Pfandbriefbank Mortgage cover pool pbb Cover funds by property type EUR billions (Nominal) 8.2 7.5 31/12/2010 / Total: EUR 20.8 bn1 30/06/2011 / Total: EUR 19.5 bn1 Appendix 1 – pbb 5.1 4.7 4.7 4.7 2.8 2.6 Office Residential Retail/Shopping Others2 Appendix 2 – DEPFA 31/12/2010 30/06/20
Slide 32: Mortgage cover pool
pbb Deutsche Pfandbriefbank Mortgage cover pool pbb Maturity profile1,2 31/12/2010: EUR millions (Nominal) 6,000 Pfandbriefe outstanding / Total: EUR 17.4 bn 5,000 Cover funds / Total: EUR 22.7 bn Appendix 1 – pbb 4,000 3,000 2,000 1,000 0 Appendix 2 – DEPFA <1y >1-2y >2-3y >3-4y >4-5y >5-10y >10y 3
Slide 33: Public Sector cover pool
pbb Deutsche Pfandbriefbank Public Sector cover pool pbb Cover funds by region Public Sector cover pool (Nominal) 31/12/2010 30/06/2011 EUR billions (Nominal) Pfandbriefe outstanding EUR 39.5 bn EUR 37.9 bn 18.9 Cover funds EUR 43.8 bn EUR 42.0 bn 17.9 31/12/2010 / Total: EUR 41.9 bn 1,2 Over-collat
Slide 34: Public Sector cover pool
pbb Deutsche Pfandbriefbank Public Sector cover pool pbb Cover funds by counterparty type EUR billions (Nominal) 18.0 16.4 31/12/2010 / Total: EUR 41.9 bn1,2 30/06/2011 / Total: EUR 40.4 bn1,2 13.1 Appendix 1 – pbb 12.6 10.0 9.3 1.3 1.6 Regional authorities Central governments Local authorities Othe
Slide 35: Public Sector cover pool
pbb Deutsche Pfandbriefbank Public Sector cover pool pbb Maturity profile1,2 31/12/2010: EUR millions (Nominal) 14,000 Pfandbriefe outstanding / Total: EUR 39.5 bn 12,000 Cover funds / Total: EUR 43.8 bn Appendix 1 – pbb 10,000 8,000 6,000 4,000 2,000 0 <1y >1-2y >2-3y >3-4y >4-5y >5-10y >10y Append
Slide 36: Appendix – DEPFA
Appendix 2 – DEPFA Results Q2 2011 Results Q2 2011, August 11, 2011
Slide 37: Agenda
DEPFA Agenda pbb Financial Results Appendix 1 – pbb Total Portfolio ACS Cover Pool HPBI Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q2 2011, August 11, 2011 37
Slide 38: Income statement
DEPFA Income statement pbb Income statement (IFRS) In Q2 2011, net interest income benefited less from gains from 1 1 1 1 EUR millions Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 buy-backs of debt instruments (Q2 2011: EUR 23 mio, Q1 2011: EUR 118 mio) Operating revenues -52 -159 -370 101 151 45
Slide 39: Balance sheet
DEPFA Balance sheet pbb Total assets (IFRS) Total liabilities and equity (IFRS) EUR billions EUR billions 250 250 Trading assets 17 Trading liabilities 15 Appendix 1 – pbb Loans and advances Liabilities to other banks 144 -4% 161 144 -4% (Public Sector 159 and customers and other)1 25 25 114 110 114
Slide 40: Balance sheet
DEPFA Balance sheet pbb Change Change Assets (IFRS) Equity and liabilities (IFRS) 30.06.20111 31.12.20101 30.06.2011 31.12.2010 EUR millions EUR millions EUR mio % EUR mio % Cash reserve 406 2,283 -1,877 -82.2 Liabilities to other banks 32,487 39,803 -7,316 -18.4 Trading assets 14,301 24,740 -10,439
Slide 41: Capitalisation
DEPFA Capitalisation pbb Risk-weighted Assets (RWA) Market risk RWA reduced further by EUR 0.4 bn (-6%) to EUR 6.3 bn, primarily reflecting maturities (pre-/repayments) EUR billions Operational risk Tier I capital stable (excluding year-to-date profit/adjustments) -85% Counterparty risk Tier I ratio
Slide 42: Agenda
DEPFA Agenda pbb Financial Results Appendix 1 – pbb Total Portfolio ACS Cover Pool HPBI Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q2 2011, August 11, 2011 42
Slide 43: Total portfolio: exposure by region
DEPFA Total portfolio pbb Exposure by region (EaD)1 EUR billions 11.5 31/12/2010 / Total: EUR 63.1 bn 9.8 9.7 9.2 30/06/2011 / Total: EUR 54.3 bn 8.6 Appendix 1 – pbb 7.8 4.7 4.5 4.3 4.2 4.3 4.0 4.0 3.8 3.5 3.0 2.8 2.7 1.5 1.5 1.4 1.3 1.7 1.6 1.3 1.1 1.3 1.0 0.6 0.6 0.1 0.0 0.0 0.0 0.0 0.0 USA Germa
Slide 44: Total portfolio: exposure by counterparty type
DEPFA Total portfolio pbb Exposure by counterparty type (EaD)1 EUR billions 21.6 20.3 31/12/2010 / Total: EUR 63.1 bn 16.5 30/06/2011 / Total: EUR 54.3 bn Appendix 1 – pbb 13.1 10.9 8.1 7.7 7.1 3.9 3.7 1.8 1.6 0.6 0.3 Public Sector Entities Sovereign2 Financial Institutions Local Authorities Corpora
Slide 45: Total portfolio: exposure by PD class
DEPFA Total portfolio pbb Exposure by PD class (EaD)1 PD class S&P rating scale EUR billions 1-7 AAA to A- 8-10 BBB+ to BBB- 61.0 11-13 BB+ to BB- 53.6 31/12/2010 / Total: EUR 63.1 bn 14-22 B+ to B- 30/06/2011 / Total: EUR 54.3 bn 23-27 CCC+ to CCC- Appendix 1 – pbb 28-30 D 1.8 0.4 0.2 0.2 0.0 0.0 0
Slide 46: Exposure in selected countries
DEPFA Exposure in selected countries pbb Sovereign exposure (EaD)1 EUR billions 31/12/2010 XX Avg maturity in years 30/06/2011 1.9 1.8 Appendix 1 – pbb 0.4 0.4 0.0 0.0 0.0 0.0 0.0 0.0 ~4 ~12 Portugal Ireland2 Italy Greece Spain Appendix 2 – DEPFA Non-sovereign exposure (EaD)1,3 EUR billions 31/12/20
Slide 47: Total problem loans
DEPFA Total problem loans pbb Total problem loans (EaD) Workout1 EUR billions Restructuring2 -86% 0.8 0.0 Appendix 1 – pbb 0.8 0.1 0.1 0.1 0.0 0.0 0.0 0.1 0.1 0.1 Appendix 2 – DEPFA 30/09/2010 31/12/2010 31/03/2011 30/06/2011 Appendix 3 – HRE Group Note: Figures may not add up due to rounding 1 No s
Slide 48: Agenda
DEPFA Agenda pbb Financial Results Appendix 1 – pbb Total Portfolio ACS Cover Pool HPBI Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q2 2011, August 11, 2011 48
Slide 49: ACS cover pool
DEPFA ACS Bank ACS cover pool pbb Cover pool by region ACS cover pool (Nominal) 31/12/2010 30/06/2011 EUR billions (Nominal) Public Sector ACS outstanding EUR 34.3 bn EUR 29.6 bn 9.6 Cover pool EUR 37.7 bn EUR 32.4 bn 9.2 Over-collateralisation (Nominal/NPV) 9.9% / 13.2% 9.4% / 12.8% 31/12/2010 / To
Slide 50: ACS cover pool
DEPFA ACS Bank ACS cover pool pbb Cover pool by counterparty type EUR billions (Nominal) 25.9 31/12/2010 / Total: EUR 37.7 bn 21.9 30/06/2011 / Total: EUR 32.4 bn Appendix 1 – pbb 6.3 5.4 4.1 3.8 1.4 1.3 Public Sector Entities Local Authorities Sovereign Others Appendix 2 – DEPFA 31/12/2010 30/06/20
Slide 51: ACS cover pool
DEPFA ACS Bank ACS cover pool pbb Maturity profile1 31/12/2010: EUR millions (Nominal) 20,000 ACS bonds outstanding Cover pool 15,000 Appendix 1 – pbb 10,000 5,000 0 <1y >1-5y >5-10y >10y Appendix 2 – DEPFA 30/06/2011: EUR millions (Nominal) ACS bonds outstanding 15,000 Cover pool 10,000 Appendix 3
Slide 52: Agenda
DEPFA (sub-group) Agenda pbb Financial Results Appendix 1 – pbb Total Portfolio ACS Cover Pool HPBI Cover Pool Appendix 2 – DEPFA Appendix 3 – HRE Group Results Q2 2011, August 11, 2011 52
Slide 53: HPBI cover pool
Hypo Pfandbrief Bank International (HPBI) HPBI cover pool pbb Cover pool by region LdG cover pool 31/12/2010 30/06/2011 EUR billions (Nominal) Lettres de Gage outstanding EUR 3,276 mio EUR 2,800 mio 0.74 Cover pool EUR 3,509 mio EUR 3,205 mio 31/12/2010 / Total: EUR 3,509 mio Over-collateralisation
Slide 54: HPBI cover pool
Hypo Pfandbrief Bank International (HPBI) HPBI cover pool pbb Cover pool by counterparty type EUR billions (Nominal) 1.3 1.2 31/12/2010 / Total: EUR 3,509 mio 1.0 30/06/2011 / Total: EUR 3,205 mio Appendix 1 – pbb 0.9 0.9 0.8 0.2 0.2 0.1 0.1 Bank Agency Region Government Other Appendix 2 – DEPFA 31/
Slide 55: HPBI cover pool
Hypo Pfandbrief Bank International (HPBI) HPBI cover pool pbb Maturity profile1 31/12/2010: EUR millions (Nominal) 1,200 Lettres de Gage outstanding 1,000 Cover pool Appendix 1 – pbb 800 600 400 200 0 <1y >1-2y >2-3y >3-4y >4-5y >5-10y >10-20y >20y Appendix 2 – DEPFA 30/06/2011: EUR millions (Nomina
Slide 56: Appendix 3 – HRE Group
Appendix 3 – HRE Group Results Q2 2011 Results Q2 2011, August 11, 2011
Slide 57: HRE Group: Income statement
HRE Group Income statement pbb Income statement (IFRS) 1 1 1 1 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 EUR millions Operating revenues 51 -66 -244 348 260 177 Net interest and similar income 243 235 197 90 218 141 Net commission income -100 -98 -125 4 8 0 Appendix 1 – pbb thereof: SoFFin gua
Slide 58: HRE Group: Balance sheet
HRE Group Balance sheet pbb Total assets (IFRS) Total liabilities and equity (IFRS) EUR billions EUR billions 384 384 Trading assets 17 Trading liabilities 16 328 328 -12% -12% 39 39 Appendix 1 – pbb 267 Liabilities to other banks 181 267 Loans and advances and customers 245 27 234 27 234 (Public Se
Slide 59: HRE Group: Balance sheet
HRE Group Balance sheet pbb Change Change Assets (IFRS) Equity and liabilities (IFRS) 30.06.20111 31.12.20101 30.06.2011 31.12.2010 EUR millions EUR millions EUR mio % EUR mio % Cash reserve 537 2,507 -1,970 -78.6 Liabilities to other banks 55,404 101,382 -45,978 -45.4 Trading assets 22,504 39,114 -
Slide 60: HRE Group: Capitalisation
HRE Group Capitalisation pbb Risk-weighted assets (RWA) Market risk RWA slightly increased to EUR 18.1 bn (+1%), primarily reflecting rating downgrades EUR billions Operational risk Tier I capital stable (excluding year-to-date profit/adjustments) -73% Counterparty risk Tier I ratio now at 38.9% 75.
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