DZ BANK Corporate presentation
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DZ BANK Corporate presentation
At a glance (1/2)
Cooperative banks 875
Branches 10,520
Customers (mln) 30
Headquarter Frankfurt am
thereof `shareholders´ (mln) 18.6 Main
Employees 176,500 Employees 30,732
Profit before taxes (€ mln) 7,771 Profit before taxes (€ mln) 1,370
Consolidated total assets (€ bn) 1,290 Consolidated total assets (€ bn) 519
(As of 31.12.2018) (As of 31.12.2018)
Seite 2 2019 DZ BANK - Corporate presentation
At a glance (2/2) – DZ BANK Group
Common equity Tier 1 capital ratio
Profitable Banking Group with profit before taxes
(fully loaded) 14.5% 13.7% 13.7%
of
€ 1.4 bn 13.0%
Second-largest German Banking Group with
consolidated total assets of
€ 519 bn
2015 2016 2017 2018
One of the best ratings in the EU banking market Leverage Ratio
(Issuer Credit Rating) (fully loaded)
4.0% 4.1% 4.4% 4.3%
S&P Fitch Ratings Moody‘s
AA- AA- Aa1
2015 2016 2017 2018
Seite 3 2019 DZ BANK - Corporate presentation
Agenda 1. Volksbanken Raiffeisenbanken cooperative financial network 2. DZ BANK Group 3. DZ BANK Group‘s business performance 4. Business segments 5. Contact persons Page 4 2019 DZ BANK - Corporate presentation
1. Volksbanken Raiffeisenbanken cooperative financial network
The three pillars of the German banking sector Regional focus Domestic market
Subsidiarity is key for the cooperative financial network
– at its core are the local cooperative banks
Client Business Associations and Service Providers
Umbrella association for the cooperative banking sector
Lobbying
Strategic coordination
Regional market approach
Advisory, support and information
Customer relationship
Protection scheme
Regional- and other associations
Auditing and consulting associations
Auditing
Consulting and support
Lobbying
Education
Service companies
Central institution Various cooperative service and technology companies
Specialized service providers Banking Software
Joint market approach IT-facilities and -support
Advertising programms
…
Seite 7 2019 DZ BANK - Corporate presentation
Cooperative protection scheme of BVR
The ’Dual System’ of institution protection
BVR-ISG BVR-SE
BVR-Institutssicherung GmbH as BVR-Sicherungseinrichtung as institution
direct deposit protection protection and indirect deposit protection
Fulfilment of the legal requirements (EU guideline
’DGSD’1 and German law on deposit insurance) by
Additional voluntary protection system since 1934
founding of BVR-ISG in 2015
BVR-ISG is an officially recognised deposit BVR-SE is the oldest, privately financed bank
protection system as Institutional Protection Scheme protection scheme worldwide
Institution protection: Measures for the avoidance
Safeguarding of depositor compensation by of threatening or impending economic difficulties
protection of customer deposits of up to € 100,000 faced by member institutions (preventive avoidance
per person per institution of bankruptcy)
Deposit protection (BVR-SE and BVR-ISG)
Comprehensive protection for customer deposits held by non-banks, including bearer bonds and certificates
issued by the cooperative banks (indirectly via BVR-SE). Direct deposit protection via BVR-ISG up to EUR
100,000 per person per institute.
1 Deposit Guarantee Schemes Directive
Seite 8 2019 DZ BANK - Corporate presentation
Cooperative protection scheme of BVR
Key figures and function
Responsible body is the national association
(Bundesverband der Deutschen Volksbanken
und Raiffeisenbanken e.V. – BVR)
Monitoring by Federal Financial Supervisory
Authority (BaFin)
Comprehensive institution protection for all members,
no bankruptcy among members since 1934
Members: 875 Cooperative banks,
DZ BANK AG, DZ HYP, DZ PRIVATBANK,
Schwäbisch Hall, TeamBank, DVB Bank,
Münchener Hypothekenbank
Seite 9 2019 DZ BANK - Corporate presentation
Consolidated financial statements of the cooperative
financial network
2017 2017
Consolidated total assets Profit before taxes (€ mln) 7,771 8,916
3% Cost/income ratio (%) 69.5 65.3
Loans and advances to customers 795 762
35 % (€ bn)
Deposits from customers (€ bn) 842 801
62 % Consolidated total assets (€ bn) 1,290 1,243
Consolidated equity (€ bn) 107.7 104.4
Common equity Tier 1 capital ratio (%)1 15.5 15.4
Cooperative banks
Leverage ratio (%, fully loaded) 7.8 7.7
DZ BANK Group
Employees 176,500 177,248
Münchener Hypothekenbank (As of 31.12.2018)
1 incl. § 340f HGB-Reserven
Seite 10 2019 DZ BANK - Corporate presentationInteraction within the german cooperative financial
network
30 million customers,
thereof 18.6 million `shareholders´
Shareholders Customer relationship
875 cooperative banks
Cooperative financial network
about 10,500 branches
(Volksbanken, Raiffeisenbanken, Sparda-
Banks, PSD Banks, Church banks, apoBank,
other special coop. banks)
Products and
Shareholders
services
Business segments
Retail Banking Corporate Banking
Transaction
Capital Markets
Banking
Seite 11 2019 DZ BANK - Corporate presentation2. DZ BANK Group
Our vision determines the strategic framework of the
DZ BANK Group
The most important requirement for the success
Vision of the cooperative financial network is the
strengthening of the cooperative banks in
their market (mandate for sponsorship).
The DZ BANK Group will align itself
toward the cooperative banks such The high network orientation of the central
that the … institution is reflected by the fact that the
emphasis is on the interests of the
cooperative financial network which is in
close proximity to local market conditions
and takes into account the respective features
of the different market sections.
… will further develop The basis of the cooperation between
its position as the leading financial cooperative banks on the one hand and the
services provider in Germany. central institution and specialized service
providers of the cooperative financial network on
the other hand is subject to the principles of
subsidiarity, decentralization and regional
market responsibility.
Seite 13 2019 DZ BANK - Corporate presentationDZ BANK Group: strong brands – strong partners
DZ BANK AG acts as the holding
company for the DZ BANK Group
Central institution / Corporate Holding companies
bank companies Companies associated with the Central
institution / Corporate bank are
DZ BANK AG
DZ HYP
DZ PRIVATBANK
VR Smart Finanz1
Companies associated with the holding
Employees 30,732 are
Bausparkasse Schwäbisch Hall
Profit before taxes (€ mln) 1,370
R+V Versicherung
thereof CICB 308 TeamBank
Consolidated total assets (€ bn) 519 Union Investment
(As of: 31.12.2018) various other specialized
institutions, e.g. ReiseBank
1 VR Leasing Group combines its core business (Leasing, hire purchase and loans) under its ‘VR Smart Finanz‘ brand.
Seite 14 2019 DZ BANK - Corporate presentationDZ BANK Group: shareholding structure
Shareholding structure Subsidiaries of DZ BANK AG:
of DZ BANK AG ownership stakes
5.5 % 96 %
91 %
1
94.5 % 100 %
92 %
(€ mln) 97 %
Cooperative banks (direct and indirect) 4,657
Other cooperative and other enterprises 269
92 %
Total subscribed capital 4,926 97 %
1 VR Leasing Group combines its core business (Leasing, hire purchase and loans) under its ‘VR Smart Finanz‘ brand.
Seite 15 2019 DZ BANK - Corporate presentationDZ BANK Group companies:
DZ BANK AG – Cooperative central institution
DZ BANK serves as central institution of
the Volksbanken Raiffeisenbanken
cooperative financial network and
commercial bank. It is the central
institution for all 915 cooperative banks in
Germany, which hold the majority of its
shares.
Under the tagline ‘DZ BANK. Die
Initiativbank’, it supports the business of
Headquarter Frankfurt am Main the independent cooperative banks in
Employees 5,335 their regions with the aim of strengthening
Profit before taxes (€ mln) 522 their competitiveness. The combination of
local customer knowledge and central
Consolidated total assets (€ bn) 271
product expertise has proved to be
(As of: 31.12.2018)
highly effective.
Additionally DZ BANK AG acts as the
holding company for the DZ BANK
Group.
Seite 16 2019 DZ BANK - Corporate presentationDZ BANK Group companies:
DZ HYP – Real estate and Pfandbriefbank
DZ HYP is one of the leading real estate
banks and one of the biggest Pfandbrief
issuers in Germany.
It acts as specialist, competence center and
driving force of real estate and public
sector financing for the Volksbanken
Raiffeisenbanken cooperative financial
network and supports the cooperative banks
in their local markets.
Headquarter Hamburg und
Münster
With its customer focused and individualized
Employees 873 distribution approach the bank acts in its
Profit before taxes (€ mln) 232 business segments business customers,
mortgage customers, public sector and retail
Consolidated total assets (€ bn) 85.9
customers.
(As of: 31.12.2018)
Seite 17 2019 DZ BANK - Corporate presentationDZ BANK Group companies:
DZ PRIVATBANK – Center for private banking
DZ PRIVATBANK is the cooperative
centre of excellence for private
banking for Volksbanken Raiffeisen-
banken in Germany and acts as a
provider of specialized services in its
business segments private banking,
investment funds and financing.
Headquarter Luxemburg The bank offers a wide range of
services, from traditional asset
Employees 1.184
management via asset structuring and
Profit before taxes (€ mln) -151 succession planning to foundation
Consolidated total assets (€ bn) 18,3 advice and individual solutions in
(As of: 31.12.2018)
generation management.
Seite 18 2019 DZ BANK - Corporate presentationDZ BANK Group companies:
VR Smart Finanz – Digital loan provider for SME customers
VR Smart Finanz1 is a subsidiary partner for
simple SME solutions within the cooperative
financial network. It acts as the expert for
simple, fast and tailor-made financing
solutions for regional SME customers and
self-employed and small businesses
customers of the cooperative banks.
Its range of services includes leasing, hire
purchase and loans up to € 750,000.
Headquarter Eschborn
Corporate customers can conclude business
Employees 955 loans online by using the websites of the
Profit before taxes (€ mln) 1 Volksbanken Raiffeisenbanken. Additionally
VR Smart Finanz offers digital services
Consolidated total assets (€ bn) 4.8 surrounding financing requirements of
(As of: 31.12.2018) corporate customers.
1 VR Leasing Group combines its core business (Leasing, hire purchase and loans) under its ‘VR Smart Finanz‘ brand.
Seite 19 2019 DZ BANK - Corporate presentationDZ BANK Group companies:
R+V – Cooperative insurance company
R+V Versicherung is one of the
leading insurance companies in
Germany and has been on a growth
trajectory for many years now. It is the
second-largest insurer in both the life
and non-life sectors.
Headquarter Wiesbaden
Based in Wiesbaden, R+V enjoys the
trust of more than 8 million
Employees 13,478 customers, who have insured over 24
Profit before taxes (€ mln) 413 million risks.
Consolidated total assets (€ bn) 107.4
(As of: 31.12.2018)
Seite 20 2019 DZ BANK - Corporate presentationDZ BANK Group companies:
Schwäbisch Hall – Cooperative building society
Schwäbisch Hall is Germany’s largest
building society, with 7.3 million customers.
It is also one of the leading home finance
providers.
Ever since it was established in 1931,
Schwäbisch Hall has been firmly anchored in
the cooperative financial network.
The building society’s around 3,400 field
Headquarter Schwäbisch Hall agents1 and more than 3,200 inhouse
Employees 3,275 employees provide customers with expert
Profit before taxes (€ mln) 295 advice and support.
Consolidated total assets (€ bn) 71.7
Schwäbisch Hall is also active in foreign
(As of: 31.12.2018)
markets (Eastern Europe and China) with
more than 3 million customers.
1 Independent sales agents; not included in table above.
Seite 21 2019 DZ BANK - Corporate presentationDZ BANK Group companies:
TeamBank – Consumer finance provider
TeamBank AG with ist easyCredit
product family is the liquidity management
specialist in the Volksbanken
Raiffeisenbanken cooperative financial
network.
It provides integrated, innovative products
and services that give customers easy
access to liquidity wherever they are and
Headquarter Nürnberg whenever they want.
Employees 1,047
Profit before taxes (€ mln) 145 The key elements of the ecosystem are
the customer-friendly finance service
Consolidated total assets (€ bn) 8.5
‘easyCredit-Finanzreserve’, the
(As of: 31.12.2018) seamless cross-mediapayment process
‘ratenkauf by easyCredit’, and an online
credit agreement service.
Seite 22 2019 DZ BANK - Corporate presentationDZ BANK Group companies:
Union Investment – Asset manager
The Union Investment Group is the fund
management specialist within the
cooperative financial network and has
been developing investment solutions for
retail and institutional investors for more
than 60 years.
Over 2,900 employees manages assets
Headquarter Frankfurt am Main
amounting to some € 332.7 billion. In
Employees 3,043 total, more than 4.3 million customers
Profit before taxes (€ mln) 502 entrust Union Investment with their
Consolidated total assets (€ bn) 2.6 money.
(As of: 31.12.2018)
Seite 23 2019 DZ BANK - Corporate presentationDZ BANK AG´s Board of Managing Directors
Uwe Fröhlich Dr. Cornelius Riese
Co-Chief Executive Officer Co-Chief Executive Officer
Strategy & Group Development Strategy & Group Development
Cooperative Banks/Verbund Legal
Communication, Marketing, Corporate Responsibility Group Audit
Structured Finance
Research and Economics
Uwe Berghaus Dr. Christian Brauckmann Ulrike Brouzi
Corporate Banking IT Group Finance
Investment Promotion Group Security and Organisation Bank Finance
Central Facility Management, Group Financial Services
Central Services and Centralised Compliance
Purchasing
Wolfgang Köhler Michael Speth Thomas Ullrich
Capital Markets Trading / Group Risk Controlling Transaction Management
Retail Clients / Credit Operations
Institutional Clients Credit Special Payments & Accounts
Group Treasury Group Human Resources
Seite 24 2019 DZ BANK - Corporate presentationDZ BANK rating overview
Bank ratings
Issuer Credit Rating AA-1 Aa1 AA-1
Outlook stable stable stable
Short-Term Rating A-1+1 P-1 F1+1
Long Term Counterparty Risk Assessment / - Aa1 AA-
Derivative Counterparty Rating
Issuance ratings
Covered Bonds AA+ Aaa -
Long Term Deposits - Aa1 AA-
Preferred AA- Aa1 AA-
Senior Unsecured
Non-preferred A+ A1 AA-
Tier 2 A A3 A+
1 Rating of the cooperative financial network
Page 25 2019 DZ BANK - Corporate presentationDZ BANK rating overview – sustainability ratings
oekom research assigns prime status (C+) to DZ BANK Group
Since 2011 Prime Status
Rating assignment (C+) as of 1 February, 2018
Above-average commitment to environmental and social issues
Further sustainability ratings
imug neutral (CCC) Uncovered Bonds
positive (BB) Mortgage Covered Bonds
MSCI AA DZ BANK far above sector average
sustainalytics 74 points Leader in the area ‘social‘, Outperformer in the areas
‘environment’ and ‘governance’
Seite 26 2019 DZ BANK - Corporate presentationSustainability activities
Examples out of DZ BANK Group
Renewable energy financing
Volume of renewable energy project financing counts for around € 5 billion in
2018.
Insurance products in renewable energy segment
R+V is one of the most important service providers of insurance products in the
renewable energy segment. In 2018 it insured 120,000 solar energy systems,
1,400 wind turbines and 1,100 biogas plants.
Financing of sustainable building
With financing new buildings, modernisation and solar energy systems CO2
emissions were reduced by 482,679 tons in 2018.
Sustainable asset management
With around € 41 billion assets under management in sustainable assets Union
Investment is the leading sustainable asset manager in Germany.
Seite 27 2019 DZ BANK - Corporate presentationSocial commitment of DZ BANK
Society Art and culture
Comprehensive activities with focus on “education” Diverse commitment in the fields of
art, dance and music
The DZ BANK Stiftung supports science, research and
teaching at universities and colleges as well as research
projects and exceptional scientific studies which are directly
related to the cooperative philosophy or to banking.
The Active Citizenship is the competence centre for civic
engagement of the Cooperative Financial Network of
Volksbanken Raiffeisenbanken. A key aspect of Active
Citizenship is the national encouragement of citizen
foundations.
The initiative ‘sozialgenial’ of DZ BANK aims to anchor the
idea of ‘service learning’ in higher education. It is intended
to offer pupils the opportunity of combining teaching and
social commitment. To this end, the participating pupils
develop their own charitable projects.
As an active member, DZ BANK supports the Initiativkreis
Ruhr. A central objective of the initiative is to expand
knowledge and awareness of young people in the region as
regards economics and finance. DZ BANK therefore
supports the annual “Dialogue with Youth” events both with
personnel and funds.
Seite 28 2019 DZ BANK - Corporate presentationDZ BANK Group
Successful innovation for the cooperative financial network
Spin-offs Selected partnerships Overarching
collaboration
Cooperative
Financial
Network
Fiducia &
GAD IT und
ADG
Long-term equity
investments
Business
sections of
DZ BANK
Page 29 2019 DZ BANK - Corporate presentationDigitization and Innovation
Examples out of DZ BANK Group
Union Investment Union Investment R+V Versicherung VR Smart Finanz ReiseBank
Cooperation
with
MeinInvest
paydirekt ReiseBank DZ BANK TeamBank R+V Versicherung
VR-
Altersvorsorge
Cockpit
TeamBank DZ BANK Schwäbisch Hall DZ BANK
… and more than
100 further
activities
Page 30 2019 DZ BANK - Corporate presentationDigitization and Innovation
Strategic innovation management in DZ BANK Group
Strategic innovation management
Trend / technology
scouting Ideation Prototyping Implementation
Trend and Ideation workshops of DZ BANK Group Within divisions
technology radar Design Thinking Rapid prototyping Transfer to partners
FinTech radar within CFN
GENOhub in collaboration with FGIT and ADG
Innovation radar Spin-off
GENOhackathon GENOlab
Technical hackathons Termination
Cooperations TechQuartier HHL SpinLab (FinTech-)Startups
Communication and culture Innovation Round Table Innovation blog Trendscouting team Presentations/publications
Seite 31 2019 DZ BANK - Corporate presentation3. DZ BANK Group‘s business performance
DZ BANK Group
Key points
Business performance Strategic development
Respectable financial performance: DZ BANK AG:
Profit before taxes of just under €1.4 billion – Completion of merger / migration
– 'Verbund First 4.0': Ambitious targets for earnings and costs
Good operating performance in all entities: DZ HYP:
Encouraging growth in the customer business Implementation of merger between DG HYP and WL BANK
Impact of negative one-off effects: DVB:
DZ PRIVATBANK, DVB, further development of – Substantial progress in 2018
DZ BANK AG – Stabilization, risk reduction, sale of parts of the business
Stable capital situation: VR Smart Finanz:
Common equity Tier 1 capital ratio of 13.7 percent Digital transformation on track
(December 31, 2017: 13.7 percent)
Very good credit rating: Further segments:
AA- (S&P / Fitch) – Integrated digitalization across the group
– Focus on growth and efficiency (e.g. 'growth through
change' program at R+V)
Page 33 2019 DZ BANK - Corporate presentationDZ BANK Group
Financial performance
Operating income1 Loss allowances Administrative expenses Profit before taxes
(€ million) (€ million) (€ million) (€ million)
-16.9%
2.5%
-97.3%
6,555
3,959 4,059
786
-24.3%
5,450
1,810
1,370
21
2017 2018 2017 2018 2017 2018 2017 2018
1 Totalof net interest income, net fee and commission income, gains and losses on trading activities, gains and losses on investments, other gains and losses on valuation of financial
instruments, net income from insurance business, and other net operating income.
Page 34 2019 DZ BANK - Corporate presentationDZ BANK Group
Income statement (preliminary)
Jan. 1 - Jan. 1 - Change
€ million
Dec. 31, 2018 Dec. 31, 2017 (%)
Net interest income 2,799 2,941 -4.8
Net fee and commission income 1,955 1,864 4.9
Gains and losses on trading activities 285 506 -43.7
Gains and losses on investments 150 10 >100.0
Other gains and losses on valuation of financial instruments -120 289 -
Net income from insurance business 490 907 -46.0
Loss allowances -21 -786 -97.3
Administrative expenses -4,059 -3,959 2.5
Other net operating income -109 38 -
Profit before taxes 1,370 1,810 -24.3
Income taxes -452 -712 -36.5
Net profit 918 1,098 -16.4
Page 35 2019 DZ BANK - Corporate presentationDZ BANK Group
Income statement by group company (preliminary)
Jan. 1 - Jan. 1 - Change
€ million
Dec. 31, 2018 Dec. 31, 2017 (%)
DZ BANK AG 522 752 -30.6
BSH 295 334 -11.7
R+V 413 795 -48.1
UMH 502 610 -17.7
DZ HYP 232 6371 -63.6
TeamBank 145 148 -2.0
DZ PRIVATBANK -151 20 -
VR Smart Finanz 1 -17 -
DVB -130 -774 83.2
Other/consolidation -459 -695 34.0
Profit before taxes 1,370 1,810 -24.3
1 = due to merger based on pro forma figures
Page 36 2019 DZ BANK - Corporate presentationSegment DZ BANK AG
Profit before taxes1 Operating performance
€ million Income statement
Year-on-year decrease in profit before taxes
Lower income, particularly under gains and losses on trading activities (due to
capital markets), income from long-term equity investments, and other net
-30.6% operating income (provision for restructuring)
Profit boosted by effect of loss allowances and administrative expenses
752 Corporate Banking
Further increase in the lending volume in German corporate banking
Very fierce competition in the market with strong pressure on margins
Retail Banking
No. 2 in the overall market for investment certificates, with market share of
522 17.7 percent (2017: 16.6 percent)
No. 3 in the overall market in terms of trading volume, with market share of
11.1 percent (2017: 9.2 percent)
Sales of structured products of €6.0 billion (2017: €6.1 billion)
Capital Markets
Positive trend in money market products, bonds, and primary market business
Volume of securitizations rises by 6 percent year on year to €2.1 billion; conduit
business via CORAL up by 9 percent
Transaction Banking
Third-largest depositary in Germany with €215 billion in AuD
Securities services doing well in low-interest-rate environment; number of
securities accounts still falling
Increase in the number of credit cards under the cards growth initiative
2017 2018
1 Excl. gains and losses on intra-group valuations of long-term equity investments and loss transfers / income subsidies.
Page 37 2019 DZ BANK - Corporate presentationSegment Home Savings business / Residential real
estate finance
Profit before taxes Operating performance
New home savings business Market share in Germany
€ million Market/environment – home € billion in %
savings: Expansion of overall
market – BSH's market share 28.0 29.7 30.9 30.6
is above 30 percent
Market/environment – home
-11.7% finance: Overall market held
steady – continued growth for
BSH
Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
334
Profit before taxes at a
295 Home finance volume
satisfactory level – net
€ billion
interest income adversely
affected by low interest rates
14.6 15.2
Dec. 31, 2017 Dec. 31, 2018
Stability for BSH in terms of market performance;
low interest rates continue to pose a challenge
2017 2018
Page 38 2019 DZ BANK - Corporate presentationSegment Insurance
Profit before taxes Operating performance
Market: According to the German
€ million Insurance Association (GDV), Life/health Property / Casualty Reinsurance
premiums grew by 2.1 percent in Profit before taxes Profit before taxes Profit before taxes
2018 (2017: 1.7 percent) € million € million € million
Robust rise in life/health 457.3
411.9
insurance premiums, but profit
before taxes down significantly 232.8
-48.1% year on year due to a marked 158.2
21.6
deterioration in gains and losses
on investments held by insurance 31.12.2017 31.12.2018 31.12.2017 31.12.2018 -74.0
795 companies 31.12.2017 31.12.2018
Profit before taxes in non-life Gross premiums Gross premiums Gross premiums
insurance down significantly year written
written written
on year due to a deterioration in
gains and losses on investments € billion € billion € billion
held by insurance companies and 7.6 7.9
higher claims expenses 5.6 5.9
413
Profit before taxes in reinsurance 2.1 2.3
squeezed by one-off items and
claims in 2017/2018
Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
Profit before taxes of R+V
Group down overall compared Good growth in premiums across all segments;
with 2017, mainly due to a marked sharp fall in the group's profit before taxes, mainly
deterioration in gains and losses due to gains and losses on investments held by
on investments held by insurance
companies insurance companies
2017 2018
Page 39 2019 DZ BANK - Corporate presentationSegment Asset Management
Profit before taxes Operating performance
€ million Negative performance of the Assets under management Net inflows from institutional
asset markets in 2018 € billion customers
€ billion
AuM at end of 2018 were on
a par with the end of 2017: 323.9 323.4 15.2
High net inflows against a
backdrop of negative market 7.8
-17.7%
performance, particularly in the
fourth quarter
Net inflows from retail
610 customers mainly driven by Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
PrivatFonds, fund-linked
502 savings plans, and real estate Net inflows from retail customers
funds € billion
Net inflows from institutional 9.9
customers remained at a high 7.5
level, driven by new
institutional customers in
Germany and abroad, capital
preservation strategies, and
sustainability funds
Dec. 31, 2017 Dec. 31, 2018
Overall decrease in profit
before taxes, although it
remained healthy overall, Good operating and financial performance
mainly due to high performance
2017 2018 fees in 2017
Page 40 2019 DZ BANK - Corporate presentationSegment Real Estate Finance Business
Profit before taxes Operating performance
Real estate sector remains New business with commercial New business with housing sector
€ million real estate investors € billion
stable, although the market
environment is becoming € billion
increasingly challenging 7.1 7.7 1.0
1.0
Year-on-year growth in the
volume of new business
-63.6% across all segments of real
estate finance and local
authority loans
637 Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
New joint credit business
with local cooperative New business with retail clients, Total volume of real estate finance*
banks slightly lower than the funds, and institutionals € billion
robust level in 2017 € billion
2.0 2.2
Costs rise as envisaged in 42.5 44.5
the budget due to merger-
related consultancy and IT
migration work
232
Strong fluctuations in fair
value gains and losses in
the wind-down portfolio; Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
widening spreads on Italian DZ HYP's core business delivers a solid performance
government bonds are having
an adverse effect despite additional work in connection with the
merger; volatility of fair value gains and losses
2017 2018
* Increase partly due to transfer of portfolio from DZ BANK
Page 41 2019 DZ BANK - Corporate presentationSegment Consumer finance
Profit before taxes Operating performance
€ million Market/environment: easyCredit new business Loans and advances to
Fierce competition based on € billion customers (IFRS)
terms and predatory pricing € billion
8.0 8.4
2.95 2.98
New business below the
budgeted figure but slightly
higher than the prior-year
-2.0% level
Stable level of loss Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
allowances Number of customers
148 145
Thousands
Stable level of profit before 877
taxes 833
Dec. 31, 2017 Dec. 31, 2018
Stable operating performance at TeamBank
2017 2018
Page 42 2019 DZ BANK - Corporate presentationSegment Private Banking
Profit before taxes Operating performance
Market/environment:
€ million Persistently tough market Assets under Management Gross inflows
conditions with increasing € billion € billion
regulatory requirements, fierce 17.3 16.7
competition for market share,
and pressure on margins;
interest rates remain low 3.3 3.1
Lower volumes, mainly due to
capital market conditions
20 Profit before taxes before one- Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
off items was on a par with 2017
Assets under custody Lending volume
One-off items resulted in a loss € billion € billion
before taxes (no impact on
capital): 108.8
Impairment of goodwill in an 101.6
amount of around €128 million 5.0 5.0
Impairment of recognized
customer relationships in an
amount of around €41 million;
this will reduce some of the
financial impact in subsequent Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
years
Stable operating performance; very challenging
-151 competitive environment; lower volumes primarily due
to market conditions; one-off items having an impact
2017 2018
Page 43 2019 DZ BANK - Corporate presentationSegment Leasing
Profit before taxes Operating performance
€ million Market: Performance of the New equipment leasing business Existing equipment leasing
leasing sector reflected that of € billion business
the economy as a whole, with € billion
positive expectations for new 1.1 1.2 2.9 3.0
business
Small rise in new business
compared with 2017
Profit before taxes included Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
one-off items in connection Factoring sales Central settlement sales
with the transformation into a
€ billion € billion
digital provider of finance for
the self-employed and small 3.2 3.4 8.1 8.1
1 businesses
Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
Small rise in new business, significant progress
-17 with VR LEASING's transformation
2017 2018
Page 44 2019 DZ BANK - Corporate presentationSegment Transport Finance
Profit before taxes Operating performance
€ million Market situation remains Volume of new business New transactions
difficult in maritime sectors; € billion Number
overcapacity in main shipping 3.2 3.7
144
segments, situation in the 122
offshore segment is
+83.2% particularly difficult
Overall stable volume of new
business, but reduced Dec. 31, 2017 Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2018
volume of customer loans
due to downsizing in the non- Customer lending volume
-130 core segment € billion
19.4
Other 0.6 16.6
Negative impact as a result of Land Transport 1.4 0.5
temporary measurement Aviation 6.1 1.5
effects under IFRS 5.2
Strategic options being Shipping 11.3 9.4
examined, in particular the
partial sale of portfolios
Dec. 31, 2017 Dec. 31, 2018
Stabilization of the risk situation, moderate
-774
business performance, strategic options being
examined
2017 2018
Page 45 2019 DZ BANK - Corporate presentationDZ BANK Group
Key capital ratios (fully loaded CRR)
CET 1 Capital ratio (fully loaded) Capital requirements – CET 1
(%) (%)
14.5
13.7 13.7
13.0
13.7
Pillar 1 requirements 4.50%
9.75 Pillar 2 requirements 1.75%
Combined buffers 3,50%2
Dec 31, 2015 Dec 31, 2016 Dec 31, 2017 Dec 31, 2018 Capital ratio 2019 SREP
Dec 31, 2018 requirements
Leverage Ratio (fully loaded) Stable development of capital ratios
(%) Minimum capital requirements
(SREP ratio1) for 2019 of 9.75 percent (2018: 8.84
4.4 4.3
4.0 4.1 percent)
Dec 31, 2015 Dec 31, 2016 Dec 31, 2017 Dec 31, 2018
1 MDA trigger (maximum distributable amount): Year-on-year increase owing to raising of the capital conservation buffer and the O-SII buffer (buffer for other systemically important institutions)
2 Excl. countercyclical capital buffer in an amount of 0.05% (as at 31.12.2018)
Page 46 2019 DZ BANK - Corporate presentationDZ BANK Group
Diversified funding base
Funding structure* Money market funding
In % / bn € Liquidity surplus of local cooperative banks
319.3 provides the main basis for short-term funding in
293.4 285.5 the unsecured money markets
42.5% Corporate customers and institutional clients are
Senior Unsecured Funding >1Y 45.4% 45.7% another important source of funding
DZ BANK and DZ PRIVATBANK use groupwide
15.5%
Secured Funding >1Y 16.8% 16.9%
multi-issuer euro commercial paper program to
issue money market products based on debt
42.0% certificates
Short-term Funding 37.8% 37.4%
Furthermore collateralized money market
activities
31.12.2016 31.12.2017 30.06.2018
Structural liquidity (>1Y)
Unsecured short-term and medium-term funding Funding via structured and non-structured
As of 31.12.2017* capital market products
Local cooperative banks Products offered for local cooperative banks‘
20% own-account and customer-account securities
Other banks, central banks
business and to institutional clients
Corporate and institutional customers
45% Secured funding through issuance of Pfand-
Commercial paper (institutional investors)
briefe / DZ BANK BRIEFE by DZ BANK,
18%
DZ HYP and DVB on a decentralized basis
Long-term funding requirements in foreign
17% currencies are covered through the basis swap
market, ensuring matching maturities
* Figures as of Dec 31, 2018 not yet available; only marginal adjustments expected
Page 47 2019 DZ BANK - Corporate presentation4. Business segments
Business segments – overview
1
Retail Banking
Corporate Banking
Capital
Markets
Transaction
Banking
The DZ BANK Group delivers its strategy and range of services for the cooperative banks and their
customers through its four business segments – Retail Banking, Corporate Banking, Capital, Markets and
Transaction Banking.
1 VR Leasing Group combines its core business (Leasing, hire purchase and loans) under its ‘VR Smart Finanz‘ brand.
Seite 49 2019 DZ BANK - Corporate presentationCooperative Banks / Verbund
Holistic support for the cooperative banks from the
Regionaldirektor of DZ BANK
Retail / Corporate customers / Overall banking managmement / Production bank
Church banks
Specialized coop. banks
Key-Account-Management
Exploitation of Relationship management
Sparring partner
revenue and to cooperative banks
in strategic questions
market potential as customers and shareholders
Bank management
Seite 50 2019 DZ BANK - Corporate presentationCooperative Banks / Verbund
Overall bank management: from the strategic setting to
operational implementation
2.
1.
Banks‘ own
Support
deposits (Depot
services
A) and markets
4. 3.
Process Product
support solutions
5. Sparring partner
Page 51 2019 DZ BANK - Corporate presentationRetail Banking
DZ BANK Group
Investment products/
Payments and cards business
Comprehensive range of
Real estate finance
services
via DZ BANK Group‘s ‚Allfinanz‘
Consumer finance
approach
Competitive products
Private banking offered by the group companies in their
field of competence at reasonable prices
Asset management /
Investment products Cooperative customer
service
Pension plans via local cooperative banks in their region
Insurance
Page 52 2019 DZ BANK - Corporate presentationRetail Banking
DZ BANK AG
Orientation to clients in a highly-
fragmented market
The cooperative financial network‘s with leading
position in structured securities:1
Market share of more than 42% in the capital
protection certificates product group
Market share of more than 36% in the
express certificates product group
Germany‘s first issuer with a certified quality
management system for product development
and customer satisfaction measurement
„dzbank-derivate.de“ is DZ BANK‘s derivatives
portal
1 Source: Deutscher Derivate Verband,
Market share in the structured securities product group, 12/31/18, Market share by volume
Page 53 2019 DZ BANK - Corporate presentationCorporate Banking
DZ BANK Group
Bank products
Commercial real estate finance
business
Growth
Support the customer with advisory
ideas from a single source
Leasing / Hire purchase / Loans
Stability
Asset management The business relationship is guaranteed
by one of Europe’s best bank ratings
Financial investments Safety
for our customers’ plans for the future
based on sustainable cooperation in a
Equity finance strong cooperative financial network
Insurance /
Company pension scheme
Page 54 2019 DZ BANK - Corporate presentationCorporate Banking
DZ BANK AG
Finance
Research
International business
Risk management
Investment products
Payments
Page 55 2019 DZ BANK - Corporate presentationCorporate Banking
We are there for our customers: at the local, regional and
international levels
Local Regional International
Hamburg
Oldenburg
London Moscow
Hannover Berlin Frankfurt
Münster Istanbul Beijing
New York
Düsseldorf Leipzig
Dresden Mumbai
Hongkong
Coblenz Singapore
Frankfurt
Jakarta
Nuremberg
Region Northern & Eastern Germany São Paulo
Karlsruhe
Region West Germany
Stuttgart Region Baden-Württemberg
Region Bavaria Central Division Corporate Banking Branch
Munich
Rep. Office
HQ
Page 56 2019 DZ BANK - Corporate presentationCapital Markets
DZ BANK AG
Primary Secondary
market market
Cooperative banks
Advisory and sales
services in relation to
investment and risk
management products
Fixed Income Credit Corporate customers
Equities Currencies
Research services
Institutional customers
Page 57 2019 DZ BANK - Corporate presentationCapital Markets
DZ BANK AG
The core task of DZ BANK AG in its role as central institution is liquidity balance and group internal finance.
Liquidity balancing function ...
– Unlimited acceptance of liquidity from cooperative banks
(corresponds to indirect retail funding)
– Short and long-term refinance for the cooperative banks
– Internal group finance of DZ BANK Group
.... Leads to risk allocation at DZ BANK
– Borrower’s default risk and market price risk
– Liquidity risks (guaranteeing solvency, balance of maturity
mismatches)
Money / capital
market
Risk balancing via
– Money and capital markets
– Global business partner network
Page 58 2019 DZ BANK - Corporate presentationTransaction Banking
DZ BANK AG
Cooperative banks,
Partner banks,
Corporate customers
Central institution
Products
Payments Cards business Securities Custody services Additional products
Seite 59 2019 DZ BANK - Corporate presentationTransaction Banking
DZ BANK AG
Payments Securities
SEPA payments Securities transaction processing for
Individual / large sum payment transactions investments of banks (Depot A), customer
direct debt initiation business (Depot B) and investment funds
Cash management solutions Responsible for the whole processing chain
VR-RechnungsService (e-invoicing system) of securities transactions
Innovations, e.g. mobile payments
Cards business Custody services
Debit cards Custodian bank for mutual and special
Credit cards funds
Development of value-added programs in Custody services provider for the
cards business cooperative financial network (incl. Union
Investment)
Additional products Advisory
Cash supply and disposal Payments processing
Supply of coins Cards business
… Cash deposit machine services Securities transaction processing
Capital market and custody services
Additional products
Page 60 2019 DZ BANK - Corporate presentation5. Contact persons
Contact persons DZ BANK AG Cooperative banks / Verbund Andreas Deitert Head of Division Cooperative Banks/Verbund +49 69 7447 – 7402 andreas.deitert@dzbank.de Retail Banking Markus Reitmeier Head of Division Capital Markets Retail Clients +49 69 7447 – 42367 markus.reitmeier@dzbank.de Corporate Banking Andreas Brey Head of Division Region Bavaria +49 89 2134 – 3140 andreas.brey@dzbank.de Jörg Hessel Head of Division Region Baden-Württemberg +49 711 940 – 2141 joerg.hessel@dzbank.de Dr. Alexander Hildner Head of Division Region Northern & Eastern Germ. +49 40 35900 – 200 alexander.hildner@dzbank.de Thomas Löcker Head of Division Region West +49 211 778 – 2100 thomas.loecker@dzbank.de Stephan Ortolf Head of Division Central Division Corp. Banking +49 69 7447 – 99461 stephan.ortolf@dzbank.de Gottfried Finken Head of Division Structured Finance +49 69 7447 – 99878 gottfried.finken@dzbank.de Matthias Hümpfner Head of Division Investment Promotion +49 211 778 – 2200 matthias.huempfner@dzbank.de Capital Markets Heinz-Theo Brockmann Head of Division Capital Markets Institutional Clients +49 69 7447 – 6962 heinz-theo.brockmann@dzbank.de Transaction Banking Gregor Roth Head of Division Transaction Management +49 69 7447 – 2088 gregor.roth@dzbank.de Seite 62 2019 DZ BANK - Corporate presentation
Disclaimer This document is for information purposes only. This document has been prepared by DZ BANK AG Deutsche Zentral- Genossenschaftsbank (“DZ BANK”) and may only be distributed outside Germany in accordance with the local legal requirements, and persons coming into possession of this information and these materials should inform themselves about and observe the local legal requirements. This document constitutes neither a public offer nor a solicitation of an offer for the purchase of securities or financial instruments. DZ BANK does not act as investment adviser or portfolio manager. This document does not constitute a financial analysis. All evaluations, opinions or explanations contained herein are those of the author of the document and do not necessarily correspond with those of third parties. DZ BANK assumes no liability for damages caused directly or indirectly by the distribution and/or use of this document and/or for damages which are in any way connected with the distribution/use of this document. Any investment decision with respect to securities or any other financial instruments should be based on an individual advice and a prospectus or information memoranda and under no circumstances on this document. The contents of this document correspond to the status at the point in time at which the document was drafted. Future developments may render them obsolete without the document’s having been changed accordingly. Page 63 2019 DZ BANK - Corporate presentation
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