Deutsche Pfandbriefbank Ag · XETR:PBB
Deutsche Pfandbriefbank — Q1 2013 Earnings Presentation
37 slides from Deutsche Pfandbriefbank's earnings presentation, May 14, 2013
Slide 1: Results Q1 2013: pbb started well into 2013
Analyst/Investor Presentation Results Q1 2013: pbb started well into 2013 with pre-tax profit of EUR 29 mn UNAUDITED FIGURES Results Q1 2013 (unaudited), 14th May 2013
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 Q1 2013
Highlights Q1 2013 Financials New business Pre-tax profit of EUR 29 mn (Q4 2012: EUR 24 mn; Q1 2012: EUR 21 mn) in line with full-year guidance of EUR >100 mn Funding New business volume of EUR 1.6 bn doubled in comparison to EUR 0.8 bn in Q1 2012 Strong capital market activities with a total long-t
Slide 4: Income Statement
Income Statement Financials Pre-tax profit of EUR 29 mn in line with full-year guidance of EUR >100 mn New Business Pre-tax Profit (IFRS) EUR millions 49 Stable revenues from loan business, but negative effect from derivative valuation 30 29 21 24 No additions (net) to loan-loss provisions Funding r
Slide 5: Income Statement (IFRS): Result from Loan Business
Income Statement (IFRS) Financials Stable result from loan business despite lower asset base New Business Result from Loan Business EUR millions Q4 2012 Q1 2013 Key drivers Q1 2013: Net interest and similar 74 79 Higher prepayment fees income Adjusted net interest income stable despite lower asset b
Slide 6: Income Statement (IFRS): Further Result from Business Activities
Income Statement (IFRS) Financials Further results from business activities positively affected by lower general administrative and other expenses New Business Further Result from Business Activities EUR millions Q4 2012 Q1 2013 Key drivers Q1 2013: Balance of other 30 32 FMS-WM servicing (EUR 22 mn
Slide 7: Balance of Other Operating Income/Expenses and General Administrative Expenses
Income Statement (IFRS) Financials Fee income from FMS-WM servicing lower, reflecting the declining portfolio New Business Balance of Other Operating Income/Expenses General Administrative Expenses EUR millions EUR millions 37 34 32 30 30 -32 -34 -33 -32 -32 Funding 25 -24 -24 -26 -28 -23 25 28 28 2
Slide 8: Income Statement (IFRS): Result from Financial Instruments
Income Statement (IFRS) Financials Result from financial instruments driven by derivative valuation New Business Result from Financial Instruments EUR millions Q4 2012 Q1 2013 Key drivers Q1 2013: Net trading income 11 -12 Negative effect (EUR -9 mn) from derivative valuation (bilateral CVA), after
Slide 9: Balance Sheet (IFRS)
Balance Sheet (IFRS) Financials Total balance sheet further down, primarily reflecting reduction of FMS-WM bonds, lower liquidity investments and maturities New Business Total Assets EUR billions -8% 97 89 2 -1 -2 -3 -2 1 Funding 95 88 Cover Pools 12/2012 FMS-WM FMS-WM Liquidity Maturities and other
Slide 10: Capitalisation
Capitalisation Financials pbb well capitalised with Tier I ratio of 19.0% New Business RWA/Tier I ratio The regulatory capital ratios stated are calculated on an EUR billions (SolvV, German GAAP/HGB) unaudited pro-forma basis. According to the ‘Waiver Rule’ regulated in Sec. 2a KWG (German Banking A
Slide 11: Basel III Capital and Liquidity Ratios
Basel III Capital and Liquidity Ratios Financials Simulation as of 31/12/2012 (fully phased-in) New Business 31/12/2012: Basel II (actual)1 31/12/2012: Basel III (simulation – fully phased-in)1,3 EUR billions (SolvV, German GAAP/HGB) EUR billions (IFRS) RWA: € 15.3 bn RWA: € 17 bn 18.9% 16.6% 16.1%
Slide 12: New Business
New Business Financials New business volume doubled in comparison to Q1 2012 New Business Total New Business Public Investment Finance (PIF) EUR billions (Commitments, incl. extensions >1 yr) Real Estate Finance (REF) +100% 2.7 0.3 Funding 1.6 1.4 <0.1 0.1 2.4 0.8 0.7 0.1 1.3 1.6 0.2 Cover Pools 0.7
Slide 13: New Business/Portfolio: Real Estate Finance
New Business/Portfolio Financials Real Estate Finance (REF): New business focus on Germany and other selective European countries New Business New Business: Regions Total Portfolio: Regions Q1 2013: EUR 1.6 bn (Commitments, incl. extensions >1 yr) EUR billions (EaD)1 Scandinavia Netherlands <1% 12/2
Slide 14: Funding
Funding Financials Strong capital market activities in Q1 2013 with total long-term funding volume of EUR 3.1 bn New Business Long-term Funding1 2012 Q1 2013 EUR billions Pfandbriefe Unsecured Total Pfandbriefe Unsecured Total Funding Public issuances 2.287 0.750 3.037 1.000 0.860 1.860 Private plac
Slide 15: Cover Pools
Cover Pools Financials Comfortable over-collateralisation provides basis for future Pfandbrief issuances New Business Mortgage Cover Pool: Total Cover Funds Public Sector Cover Pool: Total Cover Funds EUR billions (nominal) EUR billions (nominal) 45.8% 21.1% 42.0% 41.4% 12.1% 30.7% Funding 10.9% 10.
Slide 16: Portfolio
Portfolio Financials Total portfolio declined, primarily reflecting reduction of FMS-WM bonds, lower liquidity investments as well as maturities New Business Total Portfolio EUR billions (EaD)1 -9% 75.3 Non-lending business exposure down by EUR 5 68.9 12.5 bn to EUR 7.5 bn 0.3 7.5 Funding 0.2 ̶ FMS-
Slide 17: Total volume of problem loans further down
Portfolio Financials Total volume of problem loans further down New Business Total Problem Loans Total Problem Loans: Regions EUR billions (EaD) (EaD) 93 EUR 1.1 bn EUR 1.0 bn 88 100% Luxembourg 18% 22% Italy -13% Japan Funding 1.1 33% 1.0 36% Austria <0.1 <0.1 Netherlands Spain 1.1 0.9 49% 42% UK C
Slide 18: Summary & Outlook
Summary & Outlook Financials New Business Pre-tax profit of EUR 29 mn for Q1 2013 in line Implementation of pbb target model in with full-year guidance of EUR >100 mn progress ̶ Stable revenues from loan business ̶ Optimise set-up and enhance efficiency ̶ Releases of loan-loss provisions – however,
Slide 19: Appendix
Appendix Results Q1 2013 (unaudited), 14th May 2013
Slide 20: Income Statement
Financials Financials Income Statement New Business Income Statement (IFRS) EUR millions FY 2010 FY 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 FY 2012 Q1 2013 Operating revenues 652 526 103 120 130 114 467 101 Net interest and similar income 600 371 76 74 72 74 296 79 Funding Net commission income -10 32
Slide 21: REF: New business by regions and property types
New Business Financials Real Estate Finance (REF): New business by regions and property types New Business REF: New Business by Regions and Property Types Q1 2013: EUR 1.6 bn (Commitments, incl. extensions >1 yr) 0.7 Other1 <0.1 0.1 Hotel/Leisure Warehouse/Logistics 0.2 0.4 Funding Residential 0.2 M
Slide 22: Public Benchmark Issuances 2012-2013
Funding Financials Public Benchmark Issuances 2012-2013 New Business Type WKN Launch Date Maturity Date Size Spread1 Coupon Issue/Reoffer Price Mortgage Pfandbrief A1K0RS 10.01.2012 18.01.2016 EUR 500 mn +75bp 2.250% 99.970% Mortgage Pfandbrief (1. Tap)2 A1EWJU 22.02.2012 06.10.2016 EUR 100 mn +57bp
Slide 23: Mortgage Cover Pool: Cover Funds by Region
Cover Pools Financials Mortgage Cover Pool New Business Cover Funds by Region Mortgage cover pool (Nominal) 31/12/2012 31/03/2013 EUR billions (Nominal) Pfandbriefe outstanding EUR 14.2 bn EUR 15.5 bn Cover funds EUR 20.2 bn EUR 21.9 bn 9.5 9.4 1 31/12/2012 / Total: EUR 17.6 bn Over-collateralisatio
Slide 24: Mortgage Cover Pool: Cover Funds by Property Type
Cover Pools Financials Mortgage Cover Pool New Business Cover Funds by Property Type EUR billions (Nominal) 6.4 6.1 31/12/2012 / Total: EUR 17.6 bn1 31/03/2013 / Total: EUR 17.6 bn1 4.5 4.3 Funding 3.7 3.7 3.4 3.0 Cover Pools Office Retail/Shopping Residential Other2 31/12/2012 31/03/2013 Portfolio
Slide 25: Mortgage Cover Pool: Maturity Profile
Cover Pools Financials Mortgage Cover Pool New Business Maturity Profile1 Maturity Profile1 31/12/2012: EUR millions (Nominal) 31/03/2013: EUR millions (Nominal) 6,000 Pfandbriefe outstanding / Total: EUR 14.2 bn 6,000 Pfandbriefe outstanding / Total: EUR 15.5 bn 5,000 Cover funds / Total: EUR 20.2
Slide 26: Public Sector Cover Pool: Cover Funds by Region
Cover Pools Financials Public Sector Cover Pool New Business Cover Funds by Region Public Sector cover pool (Nominal) 31/12/2012 31/03/2013 EUR billions (Nominal) Pfandbriefe outstanding EUR 29.1 bn EUR 24.3 bn Cover funds EUR 32.7 bn EUR 29.4 bn 17.3 31/12/2012 / Total: EUR 32.7 bn Over-collaterali
Slide 27: 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) 13.4 31/12/2012 / Total: EUR 32.7 bn 12.6 12.4 11.5 31/03/2013 / Total: EUR 29.4 bn Funding 5.3 4.4 Cover Pools 1.4 1.1 Central governments Regional authorities Local authorities Othe
Slide 28: Public Sector Cover Pool: Maturity Profile
Cover Pools Financials Public Sector Cover Pool New Business Maturity Profile1 Maturity Profile1 31/12/2012: EUR millions (Nominal) 31/03/2013: EUR millions (Nominal) 14,000 14,000 Pfandbriefe outstanding / Total: EUR 29.1 bn Pfandbriefe outstanding / Total: EUR 24.3 bn 12,000 Cover funds / Total: E
Slide 29: Total Portfolio by Regions
Portfolio Financials Total Portfolio New Business Total Portfolio by Regions EUR billions (EaD)1 36.6 31/12/2012 / Total: EUR 75.3 bn1 31.0 31/03/2013 / Total: EUR 68.9 bn1 Funding 7.6 7.7 6.3 6.3 4.6 4.5 3.9 3.7 3.8 3.7 3.4 3.3 2.2 1.9 1.8 1.8 1.6 1.5 Cover Pools 1.1 1.0 1.1 1.1 0.7 0.6 0.5 0.5 0.1
Slide 30: REF: Portfolio by Regions
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by Regions EUR billions (EaD) 12.1 12.1 31/12/2012 / Total: EUR 23.7 bn 31/03/2013 / Total: EUR 23.4 bn Funding 3.4 3.3 2.2 2.3 2.2 2.0 1.6 1.6 0.6 0.5 Cover Pools 0.5 0.5 0.4 0.4 0.3 0.3 0.2 0.2 0.1 0.1 <0.1 <0.1 Germany UK
Slide 31: REF: Portfolio by Property Types
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by Property Types1 EUR billions (EaD) 8.4 8.1 31/12/2012 / Total: EUR 23.7 bn 31/03/2013 / Total: EUR 23.4 bn 5.4 5.3 5.0 5.0 Funding 2.3 2.2 1.2 1.4 1.1 1.1 0.4 Cover Pools 0.3 Office Retail/ Residential Warehouse/ Mixed use
Slide 32: REF: Portfolio by Loan Types
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by Loan Types EUR billions (EaD) 22.3 21.9 31/12/2012 / Total: EUR 23.7 bn 31/03/2013 / Total: EUR 23.4 bn Funding Cover Pools 0.6 0.8 0.7 0.6 <0.1 <0.1 Investment loans Development loans Customer derivatives Other 31/12/2012
Slide 33: REF: Portfolio by EL Classes
Portfolio Financials Real Estate Finance (REF) New Business REF: Portfolio by EL Classes EUR billions (EaD) 4.9 31/12/2012 / Total: EUR 23.7 bn 4.2 31/03/2013 / Total: EUR 23.4 bn 3.9 4.0 3.4 3.5 EL class S&P rating scale Funding 1-5 AAA to A- 6-8 BBB+ to BBB- 2.5 2.4 9-11 BB+ to BB- 2.3 1.8 2.0 12-
Slide 34: PSF: Portfolio by Region
Portfolio Financials Public Sector Finance (PSF) New Business PSF: Portfolio by Region EUR billions (EaD)1 13.8 13.3 31/12/2012 / Total: EUR 38.9 bn 31/03/2013 / Total: EUR 37.8 bn Funding 5.9 5.9 5.0 5.0 4.1 4.0 3.1 3.1 1.6 1.5 1.6 1.6 1.4 1.2 Cover Pools 0.5 0.5 0.5 0.4 0.5 0.5 0.4 0.4 0.2 0.2 0.1
Slide 35: PSF: Portfolio by Counterparty Type
Portfolio Financials Public Sector Finance (PSF) New Business PSF: Portfolio by Counterparty Type EUR billions (EaD)1 10.9 10.6 31/12/2012 / Total: EUR 38.9 bn 31/03/2013 / Total: EUR 37.8 bn 8.4 8.3 8.3 8.2 8.0 7.8 Funding 3.1 3.1 Cover Pools Local Authorities Sovereign Public Sector Entities2 Fina
Slide 36: PSF: Portfolio by PD Class
Portfolio Financials Public Sector Finance (PSF) New Business PSF: Portfolio by PD Class EUR billions (EaD)1 28.0 27.2 31/12/2012 / Total: EUR 38.9 bn 31/03/2013 / Total: EUR 37.8 bn PD class S&P rating scale Funding 1-7 AAA to A- 8-10 BBB+ to BBB- 11-13 BB+ to BB- 14-22 B+ to B- 23-27 CCC+ to CCC-
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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