Deutsche Pfandbriefbank AG · XETR:PBB

Deutsche Pfandbriefbank — H1 2023 Earnings Presentation

71 slides from Deutsche Pfandbriefbank's earnings presentation, September 2023

  1. Slide 1: Results Q2/H1 2023 - Company Presentation

    Results Q2/H1 2023 - Company Presentation September 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: Agenda

    1. pbb at a Glance 2. Operative Highlights AGENDA 3. Financial Performance 4. ESG 5. Summary 6. Appendix Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 3

  4. Slide 4: Business Model & Strategy

    BUSINESS MODEL & STRATEGY Dividend title with an attractive shareholder return and clear focus on Green transformation of the CRE sector Funding CRE Lending USP Core Business – Strong capital market presence: benchmark Specialized on-balance sheet – Pfandbrief-eligible senior loans, – Leading specia

  5. Slide 5: Operating & Financial Overview

    OPERATING & FINANCIAL OVERVIEW New business Net interest and commission income 1 General and admin. expenses € bn (commitments, incl. extensions > 1 yr.) € bn (IFRS) € mn (IFRS) 40% 46% 51 CIR3 9.1 9.0 502 497 219 224 2.4 Q4 127 135 Q4 68 67 Q4 3.3 Q3 124 Q3 123 Q3 2.3 117 49 51 2.0 217 Q2 Q2 Q2 2.2

  6. Slide 6: Highlights H1/23: PBT guidance 2023 confirmed – cost cutting program initiated

    HIGHLIGHTS H1/23 PBT guidance 2023 confirmed – cost cutting program initiated PBT of € 81 mn in H1/23 – full-year guidance of € 170-200 mn confirmed REF portfolio strongly increased by € 0.9 bn to € 30.2 bn with improving margin New business volume stays low in reflection of market environment – ful

  7. Slide 7: Strategic Agenda: three phases by 2026

    STRATEGIC AGENDA We aim to deliver our plan in three phases by 2026 2026 & beyond 2024 & 2025 Release our full potential Accelerate our Further scale up our growth 2023 performance initiatives beyond 2026 Harvest first benefits to lift our performance beyond past levels Invest into our business Star

  8. Slide 8: Strategic Initiatives: Continuous progress

    STRATEGIC INITIATIVES Continuous progress in strategic initiatives 1 2 3 4 5 6 Digitalisation Profitable Green Revenue Focus on core Funding & operational growth finance diversification business diversification revamp  Strong REF  Incorporation of  Operational set-up  Bundling of PIF  Broaden o

  9. Slide 9: Cost Cutting Program

    COST CUTTING PROGRAM Cost reduction to 2022 level with medium-term CIR target of <45% by 2026 Cost savings spread among ~40% personnel costs and ~60% non-personnel costs Reduction of ~15% FTE Main drivers: increased process efficiency (esp. digital credit workplace, in-depth process review), discont

  10. Slide 10: Agenda

    1. pbb at a Glance 2. Operative Highlights AGENDA 3. Financial Performance 4. ESG 5. Summary 6. Appendix Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 10

  11. Slide 11: Operative Highlights H1/23

    OPERATIVE HIGHLIGHTS H1/23 Adequate positioning throughout the cycle € 2.5 bn ~200 bp REF new business1 Gross interest margin2 (H1/22 € 4.3 bn) REF (REFnew business1 newbusiness (approx. +30bp vs 2022) € 30.2 bn +27% REF portfolio3 pbb direkt; total volume € 5.6 bn (12/22 € 29.3 bn) 1. Incl. extensi

  12. Slide 12: CRE Markets: Challenging market environment

    CRE MARKETS Challenging market environment – further strong decline of CRE investment volumes in Q2/23 European and US Investment volume1  European and US CRE investment volumes remain (€ bn) 1.000 € on very low level in Q2/23 900 € 800 €  Ongoing difficult investment environment – prices 700 € 12

  13. Slide 13: REF New Business & Portfolio: Strong portfolio growth

    REF NEW BUSINESS & PORTFOLIO Strong REF portfolio growth with improving margin Volume of strategic REF portfolio in € bn  Growth in strategic REF portfolio benefitting from draw downs (financing volume) of new business and low level of prepayments +€ 0.9 bn  Avg. gross portfolio margin further up,

  14. Slide 14: Diversification by countries and property types

    REF NEW BUSINESS & PORTFOLIO Diversification by countries and property types allows to manage business through the cycle As of 30/06/23 Regions Property types  Highly selective and risk Mixed use/ Other Hotel other conservative new Nordics 4% Logistics/ 2% business approach in USA storage 15% 14% 3

  15. Slide 15: Solid portfolio quality – stable low average LTV

    REF NEW BUSINESS & PORTFOLIO Solid portfolio quality – stable low average LTV of 51% REF Portfolio: LTV cluster1  Solid portfolio quality with focus on prime properties in 30/06/2023: € 27.6bn (€ bn, commitments, Basel III) core inner-city locations with conservative risk parameters 12.3  Continuo

  16. Slide 16: NPL Portfolio: NPLs ≠ risk provisioning

    NPL PORTFOLIO NPLs ≠ risk provisioning Non-performing loans – regions  NPL development reflecting stressed market € mn (EaD, Basel III) 2.3% environment, but coming with only moderate risk 1.6% provisioning needs 1.0% NPE ratio1  Non-performing loans (NPLs) up ytd mainly due to new 1,094 addition

  17. Slide 17: Focus: US Portfolio

    FOCUS: US PORTFOLIO Risk profile strictly monitored and managed – only small risk provisioning need US portfolio: Property types US Office portfolio: Regions  Weak fundamentals esp. for the US Office market with high vacancies 30/06/2023: € 4.8 bn (EaD, Basel III) 30/06/2023: € 3.8 bn (EaD, Basel I

  18. Slide 18: Focus: Office Portfolio

    FOCUS: OFFICE PORTFOLIO Risk profile strictly monitored and managed – solid risk parameters Office portfolio: Regions  Office investment volumes are at historic lows, only a few 1A- 30/06/2023: € 16.4 bn (EaD, Basel III) properties with long term leases and good tenants are still transacted Other 

  19. Slide 19: Funding and Liquidity

    FUNDING AND LIQUIDITY Funding activity reflects optimisation of refinancing with focus on retail deposits New long-term funding1  Reduced capital market funding with focus on Pfandbrief € bn and retail deposits to substitute Senior Preferred funding  Public buyback tender for three Senior Preferre

  20. Slide 20: Retail Deposits up by 27% ytd to € 5.6 bn

    RETAIL DEPOSITS Retail deposits up by 27% ytd to € 5.6 bn – ~82% term money Development of retail deposit volume Retail deposits – maturity profile1 € bn 30/06/2023: € 5.6 bn 8% 18% Call money +70% 7% <1% +27% 5.6 1Y term 2% 2Y term 4.4 3Y term 14% 4Y term 3.2 25% 5Y term 7Y term 10Y term 27% 12/21

  21. Slide 21: Agenda

    1. pbb at a Glance 2. Operative Highlights AGENDA 3. Financial Performance 4. ESG 5. Summary 6. Appendix Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 21

  22. Slide 22: Financial Highlights

    FINANCIAL HIGHLIGHTS Pre-tax profit of € 81 mn underpins full-year guidance of € 170-200 mn € 81 mn 16.0% PBT (RoE before tax of 4.4%) CET 1 ratio1 (12/22: 16.7%) € -21 mn € -123 mn Risk Provisioning GAE (H1/22 € -19 mn) (H1/22 € -106 mn) 1. Calibrated towards anticipated Basel IV levels (fully load

  23. Slide 23: Financials: Solid operating performance

    FINANCIALS Solid operating performance despite difficult market environment Income statement Comments on selected P&L positions which are not € mn described on following pages Q2/22 Q2/23 H1/22 H1/23  Fair value measurement balanced – previous year mainly Operating Income 123 140 272 259 supported

  24. Slide 24: Net Interest Income

    NET INTEREST INCOME Positive NII development in Q2/23 – ongoing trend expected for H2/23 Net Interest Income  2023, NII mainly affected by € mn (IFRS)  loss of floor income  loss of TLTRO III benefit 494 489  Increased NII in Q2/23, benefitting from  increased avg. REF financing volume (H1/23:

  25. Slide 25: Risk Provisioning: low level

    RISK PROVISIONING Risk provisioning on low level, supported by release of management overlay Net income from risk provisioning € mn (IFRS)  Net income from risk provisioning increased by € 2 mn y-o-y (H1/23: € 21 mn; H1/22: € 19 mn)  Stage 1&2: Net addition of € -10 mn in Q2/23 5 (Q1/23: € +5 mn)

  26. Slide 26: Risk Provisioning: long-term level of 40-80bp

    RISK PROVISIONING Long-term sustainable provisioning level of 40-80bp expected throughout the cycle Balance sheet – loss allowances € mn 135 bp 134 bp 134 bp 125 bp 410 400 398 4 4 4 358 85 bp 29 38 bp 261 REF coverage 30 26 bp 396 394 406 329 135 103 30 231 33 105 70 09/19 12/19 12/20 12/21 12/22 0

  27. Slide 27: GAE: Investment in strategic projects

    GAE Investment in strategic projects to continue in 2023 – cost cutting program initiated General and admin. expenses  Personnel expenses mainly driven by FTE increase € mn (IFRS) due to IT insourcing  Uplift in non-personnel expenses driven by investments in strategic initiatives 51%  Medium-ter

  28. Slide 28: PBT: Pre-tax profit underpins guidance

    PBT Pre-tax profit of € 81 mn underpins full-year guidance of € 170-200 mn Pre-tax profit € mn (IFRS) Expectations for H2/23  Increase of NII by 10% vs. H1/23 expected, benefitting from stable REF financing volume and further increasing portfolio margin (Guidance NII/NCI 2023: 242 > € 450 mn)  Rea

  29. Slide 29: Capital: Strong capital base

    CAPITAL Strong capital base allows for taking advantage of profitable growth opportunities Basel III: RWA  RWA increase from new REF commitments, individual € bn (IFRS) internal rating deteriorations and reclassifications partially 17.0 17.1 17.3 compensated by maturity and FX effects 16.8  Decrea

  30. Slide 30: Agenda

    1. pbb at a Glance 2. Operative Highlights AGENDA 3. Financial Performance 4. ESG 5. Summary 6. Appendix Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 30

  31. Slide 31: ESG Progress in all areas

    ESG Progress in all areas + € 0.5 bn € 3.1 bn Green GrossBonds 1 outstanding interest margin2 Green Bonds1 (REF new business 20% 72% Green Gross REF interest Portfolio margin 2 2 share Share of scored REF portfolio (28% (REF on new scored business portfolio) 1. According to pbb’s green bond framewor

  32. Slide 32: Strong progress in sustainable finance activities

    ESG Strong progress in sustainable finance activities Green share of REF portfolio1 (green loan eligible assets, %)  72% of REF portfolio scored – scoring of remaining > 30% portfolio ongoing  Green share of total REF portfolio currently at 20% 20% 28% on (28% based on scored portfolio of 72%) vs.

  33. Slide 33: Agenda

    1. pbb at a Glance 2. Operative Highlights AGENDA 3. Financial Performance 4. ESG 5. Summary 6. Appendix Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 33

  34. Slide 34: Summary: pbb well on track to reach guidance

    SUMMARY pbb well on track to reach full-year PBT guidance Confirmation of PBT Guidance of € 170-200 mn supported by further increasing NII dynamics REF portfolio expected to stay above € 30 bn with increasing portfolio margin Adjusted New Business Guidance of € 6.5-8 bn in reflection of challenging

  35. Slide 35: Agenda

    1. pbb at a Glance 2. Operative Highlights AGENDA 3. Financial Performance 4. ESG 5. Summary 6. Appendix Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 35

  36. Slide 36: Appendix

    1. Strategic Initiatives 2. Guidance APPENDIX 3. ESG 4. Financials 5. Portfolio: Operating Processes and Profile 6. Funding & Ratings Contact Details Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 36

  37. Slide 37: Strategic Initiatives to strengthen profitability

    Published 9 March 2023, Annual Results 2022 STRATEGIC INITIATIVES Strategic initiatives to further strengthen pbb’s profitability growth trajectory and adapt our strategic focus to changing market conditions 1 2 3 4 5 6 Digitalisation Profitable Green Revenue Focus on core Funding & operational grow

  38. Slide 38: Profitable Growth

    Published 9 March 2023, Annual Results 2022 PROFITABLE GROWTH We accelerate profitable, organic growth in our core business Strategic Rationale Measures KPIs We grow our core REF We re-allocate portfolios to continue to improve our margins REF portfolio (€ bn) business in two dimensions: based on cu

  39. Slide 39: Green Finance

    Published 9 March 2023, Annual Results 2022 GREEN FINANCE Become the leading green CRE transformation financing partner in Europe Strategic Rationale Measures KPIs We set pbb up as Green Lending Green REF portfolio share1 (%) sustainable finance bank and real estate • We increase share of financed g

  40. Slide 40: Revenue Diversification

    Published 9 March 2023, Annual Results 2022 REVENUE DIVERSIFICATION We leverage our core CRE competencies for capital-efficient diversification of our income Strategic Rationale Measures KPIs We continue to diversify pbb Real Estate Investment Management (IM) pbb Group: share of net fee and our busi

  41. Slide 41: Focus on Core Business and Funding Diversification

    Published 9 March 2023, Annual Results 2022 FOCUS ON CORE BUSINESS AND FUNDING DIVERSIFICATION Diversify funding base to drive cost savings & optimize balance sheet for core business 4 Focus on core business Measures KPIs We optimise our balance • We focus on our REF core business and merge Total as

  42. Slide 42: Digitalisation & Operational Revamp

    Published 9 March 2023, Annual Results 2022 DIGITALISATION & OPERATIONAL RECAMP Catalyse profitable growth through digital processes and steadfast cost discipline compensating for investments in strategic initiatives Digitalisation Measures KPIs We continue our We further expedite the successful int

  43. Slide 43: pbb's path to its PBT target of >300 mn by 2026

    Published 15 May 2023, Q1/23 figures STRATEGIC INITIATIVES pbb’s path to its PBT target of >300 mn by 2026 Simplified waterfall € mn Revenue contribution from strategic initiatives (at constant pbb cost) >300 ~10 ~30 ~40 213 ~40 ~70 ~40 CIR <45% Investments/costs for strategic initiatives to be comp

  44. Slide 44: Appendix

    1. Strategic Initiatives 2. Guidance APPENDIX 3. ESG 4. Financials 5. Portfolio: Operating Processes and Profile 6. Funding & Ratings Contact Details Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 44

  45. Slide 45: Guidance 2023

    Published 9 March 2023, Annual Results 2022 GUIDANCE 2023 In 2023, we invest in our business to lay the foundation for accelerated growth and a higher profitability level 2022 2023 Financial Targets New business guidance updated REF new business1 € 9.0 bn € 9.0-10.0 bn 10 August 2023 to € 6.5-8 bn P

  46. Slide 46: Guidance 2026

    Published 9 March 2023, Annual Results 2022 GUIDANCE 2026 We release our full potential by 2026 and reach a higher profitability level with >10% RoE b.t. > 10% > € 300 < 45% Gross interest 2 RoE b.t. Profit b.t.margin Cost-income ratio (REF new business (> 9% RoCET1 a.t.) > 14% > 30% 50% + 25% CET1

  47. Slide 47: Appendix

    1. Strategic Initiatives 2. Guidance APPENDIX 3. ESG 4. Financials 5. Portfolio: Operating Processes and Profile 6. Funding & Ratings Contact Details Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 47

  48. Slide 48: ESG Program provides holistic approach

    ESG ESG Program provides for holistic approach with clear responsibilities assigned ESG Programme  ESG at core of pbb’s strategy:  pbb can make a real difference, reducing the ESG Committee real estate sector`s significant CO2 impact  Green finance bank and transformation partner ESG Programme Ma

  49. Slide 49: Green Loan Framework criteria

    GREEN LOAN pbb Green Loan Framework aligned with current regulatory and market developments – specific metrics defined for each criterion pbb Scoring Model EU Taxonomy MAX SCORE: 100 Points III. Additional Sustainability I. Energy Efficiency II. Building Certification Factors  Energy demand/-consum

  50. Slide 50: Appendix

    1. Strategic Initiatives 2. Guidance APPENDIX 3. ESG 4. Financials 5. Portfolio: Operating Processes and Profile 6. Funding & Ratings Contact Details Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 50

  51. Slide 51: Key Figures pbb Group

    KEY FIGURES pbb Group Income statement (€ mn) 2021 Q1/22 Q2/22 Q3/22 Q4/22 2022 Q1/23 Q2/23 H1/23 Net interest income 494 122 120 116 131 489 106 110 216 Net fee and commission income 8 2 1 1 4 8 1 1 2 Net income from fair value measurement 10 9 5 7 -1 20 1 -1 0 Net income from realisations 81 5 5 0

  52. Slide 52: Key Figures Real Estate Finance (REF)

    KEY FIGURES Real Estate Finance (REF) Income statement (€ mn) 2021 Q1/22 Q2/22 Q3/22 Q4/22 2022 Q1/23 Q2/23 6M/23 Net interest income 417 104 103 101 112 420 96 101 197 Net fee and commission income 8 2 1 2 3 8 1 1 2 Net income from fair value measurement 6 6 4 4 0 14 0 -1 -1 Net income from realisa

  53. Slide 53: Key Figures Non-Core (PIF & VP)

    KEY FIGURES Non-Core (PIF & VP) Income statement (€ mn) 2021 Q1/22 Q2/22 Q3/22 Q4/22 2022 Q1/23 Q2/23 6M/23 Net interest income 75 17 17 15 18 67 9 9 18 Net fee and commission income 0 0 0 -1 1 0 0 0 0 Net income from fair value measurement 4 3 1 3 -1 6 1 0 1 Net income from realisations 0 0 0 -1 0

  54. Slide 54: Balance Sheet

    BALANCE SHEET Specialist lender with attractive German Pfandbrief as major funding instrument Balance sheet IFRS, € bn Assets 30/06/23 31/12/22 Liabilities & equity 30/06/23 31/12/22 Financial assets at fair value through P&L 1.1 1.1 Financial liabilities at fair value through P&L 0.7 0.7 thereof th

  55. Slide 55: Appendix

    1. Strategic Initiatives 2. Guidance APPENDIX 3. ESG 4. Financials 5. Portfolio: Operating Processes and Profile 6. Funding & Ratings Contact Details Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 55

  56. Slide 56: Monitoring Process: Multi-level valuation review

    MONITORING PROCESS Multi-level valuation review process Loan Origination Regular annual review (Level 1/2) – revaluation mandatory In addition, reviews on a continuous basis: in case of significant changes (Level 3/4)  Event triggered review – revaluation mandatory in case of significant changes (e

  57. Slide 57: Risk Management: risk mitigating fields of action

    RISK MANAGEMENT Risk mitigating fields of action for pbb in worsening credit situations Additional collateral/recourse elements (e.g. cash, deposit)  Conservative risk positioning, strong covenant structures, close monitoring Risk mitigating processes and intensive client dialogue fields of action

  58. Slide 58: Portfolio: Total portfolio

    PORTFOLIO Total portfolio Regions (EaD, Basel III ) 31/12/2022 / Total: € 50.0 bn 30/06/2023 / Total: € 48.4 bn Hungary < 1% Hungary < 1% Other Europe 5% Other Europe 5% Finland 1% Finland 1% Other Rest of World 2% Other Rest of World 2% Czech Republic 1% Czech Republic 1% Sweden 2% 5% Sweden 2% 5%

  59. Slide 59: Portfolio: Real Estate Finance (REF)

    PORTFOLIO Real Estate Finance (REF) Regions Property types 31/12/2022: € 31.0 bn 30/06/2023: € 31.6 bn 31/12/2022: € 31.0 bn 30/06/2023: € 31.6 bn Austria 1% Mixed use 1% Mixed use 1% Austria 1% Other Europe Other Europe Other 1% Hotel 3% Other 1% Czech Republic 1% Czech Republic 1% Hotel 4% Retail

  60. Slide 60: REF Portfolio LTV development

    REF PORTFOLIO LTV development reflecting stressed market environment REF Portfolio: LTV cluster1 € bn 58% 54% 53% 57% 57% 53% 51% 53% 56% 55% 56% 52% 52% 52% 51% 50% 06/23 Ø 51% 53% 54% 50% 50% 03/23: Ø 51% 53% 48% 51% 51% 51% 47% 47% 06/23: Ø 51% 45% 03/23: Ø 51% 45% 45% 45% 45% 49% 49% 48% 48% 48%

  61. Slide 61: REF Portfolio Sub-segments

    REF PORTFOLIO Sub-segments Property Regions Evaluation of current situation Challenges Risk positioning  General retail property market trading conditions  Short Term: threads to income stability as well as  Selective approach with foresighted remain challenging and retailers continue to retrench

  62. Slide 62: REF Portfolio Sub-segments

    REF PORTFOLIO Sub-segments Property Regions Evaluation of current situation Challenges Risk positioning  Net absorption in Europe has recovered, although  Cooling of tenant market due to overall situation of  Focus on good locations in main European 2023 is still challenging and pre-Covid rates r

  63. Slide 63: Portfolio: Non-Core Unit (PIF & VP)

    PORTFOLIO Non-Core Unit (PIF& VP) Regions Borrower classification1 31/12/2022: € 15.2 bn 30/06/2023: € 13.9 bn 31/12/2022: € 15.2 bn 30/06/2023: € 13.9 bn Financial Institution 2% Corporation 1% Financial Institution 2% Other Europe 3% Corporation 1% Other Europe 3% Other Rest of World Other Rest of

  64. Slide 64: Portfolio: Consolidation & Adjustments (C&A)

    PORTFOLIO Consolidation & Adjustments (C&A) Regions Borrower classification2 Internal ratings (EL classes) 31/12/2022: € 3.7 bn 31/12/2022: € 3.7 bn 31/12/2022: € 3.7 bn Other Europe Other Rest of World Corporation 9–11 Sweden < 1% Supra UK 1% 8% 6% 1% USA 1% 9% 10% Poland 2% 99% Italy 4% Investment

  65. Slide 65: Appendix

    1. Strategic Initiatives 2. Guidance APPENDIX 3. ESG 4. Financials 5. Portfolio: Operating Processes and Profile 6. Funding & Ratings Contact Details Deutsche Pfandbriefbank AG, September 2023 (IFRS, pbb Group, unaudited, but reviewed) / © Deutsche Pfandbriefbank AG 65

  66. Slide 66: Funding: Own Funds and Eligible Liabilities exceed 8% TLOF

    FUNDING Own Funds and Eligible Liabilities significantly exceed 8% TLOF € bn  Buffer for Senior Preferred (SP) MREL2 Composition of Rundown investors due to high volume of (30/06/2023) Liabilities capital instruments and Senior (30/06/2023) Non-Preferred (SNP) liabilities  Existing Senior Non-Pref

  67. Slide 67: Funding: Shift into cheaper retail deposits

    FUNDING Structural shift of funding into currently cheaper retail deposits Senior Preferred pbb direkt Pfandbrief Spread Development (6M-Euribor) pbb vs peers Spread Development vs 6M-Euribor Spread Development (6M-Euribor) pbb vs peers 310 310 310 260 260 260 210 210 210 160 160 160 110 110 110 60

  68. Slide 68: Funding: Public benchmark issuances since 2019

    FUNDING Public benchmark issuances since 2019 Typesjjjj WKN Launch Date Maturity Date Size Spread1 Coupon Issue/Reoffer Price Mortgage Pfandbrief A2LQNP 21.01.2019 29.01.2024 € 500 mn +8 bp 0.25% 99.812% Senior Preferred A2LQNQ 31.01.2019 07.02.2023 € 500 mn +80 bp 0.75% 99.679% Mortgage Pfandbrief

  69. Slide 69: Mandated Ratings

    MANDATED RATINGS Bank ratings S&P Long-term BBB+ Outlook/Trend Stable Short-term A-2 1 Stand-alone rating bbb Long Term Debt Ratings “Preferred” senior unsecured Debt2 BBB+ “Non-preferred” senior unsecured Debt3 BBB- Subordinated Debt BB+ Pfandbrief ratings Moody’s Mortgage Pfandbrief Aa1 Public Sec

  70. Slide 70: Definition of Borrower Classifications

    DEFINITION OF BORROWER CLASSIFICATIONS Borrower classification Definition Sovereign Direct and indirect obligations of Central Governments, Central Banks and National Debt Agencies Sovereign (related) Indirect obligations of Non Sovereigns with an explicit first call guarantee by a Sovereign Regiona

  71. Slide 71: Contact Details

    CONTACT DETAILS Grit Beecken Axel Leupold Head of Communications 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 2880 28778

Deutsche Pfandbriefbank — H1 2023 Earnings Presentation on 6ix