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 30,846
Profit before taxes (€ mln) 7,771 Profit before taxes (€ mln) 1,464
Consolidated total assets (€ bn) 1,293 Consolidated total assets (€ bn) 561
(As of 31.12.2018) (As of 30.06.2019)
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% 14.3%
as of 30.06.2019
€ 1.5 bn
Second-largest German Banking Group with
consolidated total assets of
€ 561 bn
2016 2017 2018 06/2019
One of the best ratings in the EU banking market Leverage Ratio
(Issuer Credit Rating) (fully loaded)
4.1% 4.4% 4.3% 4.4%
S&P Fitch Ratings Moody‘s
AA- AA- Aa1
2016 2017 2018 06/2019
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 programmes
F
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 statement of the cooperative
financial network
2018 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) 1,293 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 Finanz
Companies associated with the holding
Employees 30,846 are
− Bausparkasse Schwäbisch Hall
Profit before taxes (€ mln) 1,464
− R+V Versicherung
Consolidated total assets (€ bn) 561 − TeamBank
(As of: 30.06.2019) − Union Investment
− various other specialized
institutions, e.g. ReiseBank
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 %
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 %
Stand: 31.12.2018
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 875 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 5,302 their regions with the aim of strengthening
Profit before taxes (€ mln) 209 their competitiveness. The combination of
local customer knowledge and central
Consolidated total assets (€ bn) 297
product expertise has proved to be
(As of: 30.06.2019) 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 876 distribution approach the bank acts in its
Profit before taxes (€ mln) 268 business segments business customers,
mortgage customers, public sector and retail
Consolidated total assets (€ bn) 89.6
customers.
(As of: 30.06.2019)
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 1.161
management via asset structuring and
Profit before taxes (€ mln) 13 succession planning to foundation
Consolidated total assets (€ bn) 21,8 advice and individual solutions in
(As of: 30.06.2019)
generation management.
Seite 18 2019 DZ BANK - Corporate presentationDZ BANK Group companies:
VR Smart Finanz – Digital loan provider for SME customers
VR Smart Finanz 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 816 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) 4.1 surrounding financing requirements of
(As of: 30.06.2019) corporate customers.
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 13,758 customers, who have insured over 25
Profit before taxes (€ mln) 711 million risks.
Consolidated total assets (€ bn) 117.8
(As of: 30.06.2019)
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 3,258 employees provide customers with expert
Profit before taxes (€ mln) 149 advice and support.
Consolidated total assets (€ bn) 74.9
Schwäbisch Hall is also active in foreign
(As of: 30.06.2019) 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 its 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 1,080
Profit before taxes (€ mln) 63 The key elements of the ecosystem are
the customer-friendly finance service
Consolidated total assets (€ bn) 9.0
‘easyCredit-Finanzreserve’, the
(As of: 30.06.2019) 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 3,100 employees manage assets
Headquarter Frankfurt am Main
amounting to some € 350 billion. In total,
Employees 3,149 more than 4.5 million customers entrust
Profit before taxes (€ mln) 384 Union Investment with their money.
Consolidated total assets (€ bn) 2.5
(As of: 30.06.2019)
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 negative 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
ISS-oekom 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
M 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 GENOhackathon GENOlab Spin-off
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 figures as of 30.06.2019
DZ BANK Group shows good operating performance in all group companies, profit before taxes of € 1,464 million
(H1 2018: € 1,034 million)
R+V: Significant improvement in gains and losses on investments held by insurance companies and year-on-year
decrease in claims occured
Bausparkasse Schwäbisch Hall: Proceeds from disposal of Czech long-term equity investment; by contrast larger
additions to the provisions for building society operations
Union Investment: Proceeds from disposal of Polish long-term equity investment
DZ BANK AG: Fall in profit before taxes as a result of positive one-off effects in the first half of 2018 (reversal of loss
allowances, proceeds from sales of securities), decline in gains and losses on trading activities in H1 2019, but good
operating performance (e.g. net fee and commission income)
DZ HYP: Improvement in fair value gains and losses and decrease in administrative expenses
CET 1 capital ratio as of June 30, 2019: 14.3% (Dec.31, 2018: 13.7%); Leverage Ratio: 4.4% (Dec. 31, 2018: 4.3%)
For 2019, we expect a result in the middle to the upper area of the long-term earnings range of €1.5 to €2 billion
Page 33 2019 DZ BANK - Corporate presentationDZ BANK Group
Financial performance
Operating income1 Loss allowances Administrative expenses Profit before taxes
(€ million) (€ million) (€ million) (€ million)
20.2%
1.4%
3,615
41.6%
3,008 2,018 2,046
1,464
105
1,034
-44
H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019 H1 2018 H1 2019
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
Jan. 1 - Jan. 1 - Change
€ million
Jun. 30, 2019 Jun. 30, 2018 (%)
Net interest income 1,279 1,420 -9.9
Net fee and commission income 958 958 0.0
Gains and losses on trading activities 141 206 -31.6
Gains and losses on investments 130 46 >100.0
Other gains and losses on valuation of financial instruments 179 -48 -
Net income from insurance business 761 299 >100.0
Loss allowances -105 44 -
Administrative expenses -2,046 -2,018 1.4
Other net operating income 167 127 31.5
Profit before taxes 1,464 1,034 41.6
Page 35 2019 DZ BANK - Corporate presentationDZ BANK Group
Income statement by group company
Jan 1– Jan 1– Change
€ million
Jun 30, 2019 Jun 30, 2018 (%)
BSH 149 172 -13.4
R+V 711 274 >100.0
TeamBank 63 76 -17.1
UMH 384 273 40.7
DVB -67 -71 -5.6
DZ BANK AG 209 437 -52.2
DZ HYP 268 164 63.4
DZ PRIVATBANK 13 8 62.5
VR Smart Finanz 1 1 0.0
Other / consolidation -267 -300 -11.0
Profit before taxes 1,464 1,034 41.6
X = companies associated with the holding
X = companies associated with the central institution / corporate bank
Page 36 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: Market as a whole
is growing – BSH's market 30.6 29.6
position is robust 16.0 15.6
Market/environment – home
finance: Market as a whole is
-13.4% growing – BSH's performance
is stable
172 Profit before taxes at a Jun. 30, 2018 Jun. 30, 2019 Jun. 30, 2018 Jun. 30, 2019
satisfactory level – year-on-
149 year decrease due to Home finance volume
negative one-off items that € billion
were unable to be fully 6.7 6.9
mitigated, particularly
provisions for home savings;
adverse impact from low
interest rates
Jun. 30, 2018 Jun. 30, 2019
Stability for BSH in terms of market performance;
low interest rates continue to pose a challenge
H1 2018 H1 2019
Page 37 2019 DZ BANK - Corporate presentationSegment Insurance
Profit before taxes Operating performance
Market: According to German
€ million Insurance Association, premiums are Life/health Property / Casualty Reinsurance
likely to grow by around 2% in 2019 Profit before taxes Profit before taxes Profit before taxes
(2018: 2.1%) € million € million € million
Premiums falling in life/health 346.0
340.0
following a strong prior-year period,
>100.0% but more than offset by greatly 163.0
improved gains and losses on 60.0 51.0
25.0
investments held by insurance
companies; profit before taxes much 30.06.2018 30.06.2019 30.06.2018 30.06.2019
711 higher than in H1 2018 30.06.2018 30.06.2019
Profit before taxes in non-life
insurance far higher than in H1 2018 Gross premiums Gross premiums Gross premiums
due to lower incidence of storm written written written
damage compared with prior-year € billion € billion € billion
period, increased premiums and
improving investment results 4.0 3.9 3.8 4.0
Year-on-year fall in profit before taxes
1.2 1.4
in reinsurance owing to higher
274 insurance benefit payments (partly
due to adjustment of discount rate for Jun. 30, 2018 Jun. 30, 2019 Jun. 30, 2018 Jun. 30, 2019 Jun. 30, 2018 Jun. 30, 2019
inward reinsurance in the UK)
Profit b. taxes of R+V Group well Good growth in premiums in non-life insurance
above H1 2018, mainly due to robust and reinsurance; year-on-year rise in the group's
level of gains and losses on
investments that reflects significant
profit before taxes, mainly due to gains and losses
but not lasting valuation effects on investments held by insurance companies
H1 2018 H1 2019
Page 38 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
1.81 8.4 8.9
New business slightly below
1.54
the budgeted figure but higher
than the prior-year level
Loss allowances:
Slightly more than budgeted
-17.1% and significantly higher than
in the first half of 2018 Jun. 30, 2018 Jun. 30, 2019 Dec. 31, 2018 Jun. 30, 2019
Profit before taxes:
Number of customers
Down year on year, mainly
76 Thousands
due to increased loss 918
allowances; lower than 877
63
budgeted figure as a result of
period-specific effects (high
volume of new business,
bank levy); should pick up
over the course of 2019
Dec. 31, 2018 Jun. 30, 2019
Stable operating performance at TeamBank
H1 2018 H1 2019
Page 39 2019 DZ BANK - Corporate presentationSegment Asset Management
Profit before taxes Operating performance
€ million Assets under management Net inflows from institutional
Recovery of asset markets in
€ billion customers
H1 2019
€ billion
Growth in AuM (end of 6.6
period): Good level of net 4.9
inflows against a backdrop of 323.4 349.1
+40.7% strongly performing asset
markets
384 Net inflows from retail
customers mainly driven by
fund-linked savings plans and Dec. 31, 2018 Jun. 30, 2019 Jun. 30, 2018 Jun. 30, 2019
real estate funds
273 Net inflows from retail customers
Net inflows from € billion
institutional customers 4.7
remained at a high level, 4.1
driven by new institutional
customers in Germany and
abroad, capital preservation
strategies, and sustainability
funds
Very good profit before Jun. 30, 2018 Jun. 30, 2019
taxes and operating
performance, boosted by sale Good operating and financial performance
of UI Poland
H1 2018 H1 2019
Page 40 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 1.9 67
segments, situation in the
offshore segment is
particularly difficult 0.7 30
Discontinuation of new
business in shipping /
offshore
Jun. 30, 2018 Jun. 30, 2019 Jun. 30, 2018 Jun. 30, 2019
Scaling back of the non-core
+5.6% segment and the completed Customer lending volume
sale of the land transport € billion
business are contributing to 16.6
the reduction in the volume 13.2
of lending to customers
Profit before taxes
influenced by one-off items
relating to restructuring;
smaller negative impact as a
Dec. 31, 2018 Jun. 30, 2019
result of temporary
measurement effects under
-67 IFRS
-71 Business being gradually scaled back; financial
performance influenced by one-off items
H1 2018 H1 2019
Page 41 2019 DZ BANK - Corporate presentationSegment DZ BANK AG
Profit before taxes1 Operating performance
€ million Income statement
Significant year-on-year fall in profit before taxes owing to decrease in following
items of income: gains and losses on trading activities (non-operational IFRS
effects), gains and losses on investments/other income (H1 2018: income from
sale of securities), and loss allowances (H1 2018: high net reversals)
-52.2% Increase in net fee and commission income (fund brokerage) and decrease in
administrative expenses (lower consultancy expenses)
437 Corporate Banking
Further increase in the lending volume in German corporate banking is leading to
higher income, despite pressure on margins
Cross-selling also rising, particularly with capital markets products
Retail Banking
No. 2 in the overall market for investment certificates, with market share of
17.9 percent (H1 2018: 17.6 percent)
No. 4 in the overall market in terms of trading volume, with market share of
9.1 percent (H1 2018: 11.5 percent)
209 Sales of structured products of €2.5 billion (H1 2018: €3.2 billion)
Capital Markets
Positive trend in money market, currency, and primary market bond business with
corporate banking customers
Volume of securitizations rises by 27 percent year on year to €2.4 billion; conduit
business via CORAL up by 17 percent
Transaction Banking
Currently fourth-largest depositary in Germany with a record €236.6 billion in AuD
Good performance in payments processing
H1 2018 H1 2019 Increase in the number of credit cards under the cards growth initiative
1 Excl. gains and losses on intra-group valuations of long-term equity investments and loss transfers / income subsidies.
Page 42 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 due to low interest
rates, although the market € billion
3.5 0.5
environment is becoming 3.0
increasingly challenging 0.3
+63.4% Satisfactory new business
due to better-than-expected
performance in the
268 Commercial Real Estate
Investors segment Jun. 30, 2018 Jun. 30, 2019 Jun. 30, 2018 Jun. 30, 2019
Substantial year-on-year New business with retail clients, Total volume of real estate finance*
increase in new joint credit funds, and institutionals € billion
business with local € billion
cooperative banks 1.3 45.3 47.3
164
Continuation of strong 0.9
fluctuations in fair value
gains and losses in the
wind-down portfolio; highly
volatile spreads on Italian
government bonds, currently Jun. 30, 2018 Jun. 30, 2019 31.12.2018 30.06.2019
a very healthy contribution to
profits DZ HYP's core business delivers a solid perfor-
mance despite additional work in connection with the
merger; volatility of fair value gains and losses
H1 2018 H1 2019
* Increase partly due to transfer of portfolio from DZ BANK
Page 43 2019 DZ BANK - Corporate presentationSegment Private Banking
Profit before taxes Operating performance
€ million Market/environment: Assets under Management Gross inflows
Persistently tough market € billion € billion
conditions with increasing 16.7 18.3
regulatory requirements,
fierce competition for market
share, and pressure on
margins; interest rates remain 1.8 1.7
low
Volumes: Dec. 31, 2018 Jun. 30, 2019 Jun. 30, 2018 Jun. 30, 2019
AuM and AuC rose by an
average of around 9.5 Assets under custody Lending volume
+62.5% € billion € billion
percent compared with
December 31, 2018 111.0
101.6
13 Profit before taxes: 5.2
5.0
Stable trend, positive impact
due to write-down of
8 customer relationships in
2018
Dec. 31, 2018 Jun. 30, 2019 Dec. 31, 2018 Jun. 30, 2019
Stable operating performance; AuM and AuC buoyed
by good equity market situation; competitive
environment remains very challenging
H1 2018 H1 2019
Page 44 2019 DZ BANK - Corporate presentationSegment Commercial Financing Solutions
Profit before taxes Operating performance
€ million Market: Performance of the New equipment leasing business Existing equipment leasing
leasing sector reflected that € billion business
of the economy as a whole, € billion
with positive expectations for 0.65 3.04 2.88
0.57
new business
New business holds steady
year on year
Profit before taxes included
one-off items in connection
with the transformation into a Jun. 30, 2018 Jun. 30, 2019 Jun. 30, 2018 Jun. 30, 2019
digital provider of finance for Factoring sales
the self-employed and small € billion
businesses 1.63 1.78
+/-0.0%
Jun. 30, 2018 Jun. 30, 2019
1 1
Stable new business, significant progress in
transformation of VR Smart Finanz
H1 2018 H1 2019
Page 45 2019 DZ BANK - Corporate presentationDZ BANK Group
Diversified funding base
Money market funding
Funding structure
Liquidity surplus of local cooperative banks
provides the main basis for short-term
funding in the unsecured money markets
€ 293.4 bn € 285.5 bn € 298.7 bn
Corporate customers and institutional clients
Senior Non-Preferred
Funding >1Y 45.4 % 43.6%% are another important source of funding
11.0
Senior Preferred 45.4 % 45.5 % 46.5 % DZ BANK and DZ PRIVATBANK use
45.4
48.6 %% 45.7 % 35.6 % groupwide multi-issuer euro commercial
Funding >1Y
16.8 % 16.7% paper program to issue money market
16.8 % 16.9 16.2 %
Secured Funding >1Y 16.8
13.3 %% 16.9%
% 16.2 % products based on debt certificates
37.3 Furthermore collateralized money market
Short-term Funding 37.8 %
37.8
38.1 %%
37.8
37.4%%
37.4 % 37.2%
39.7%%
activities
Q4 2016 Q4 2017 Q4 2018 Structural liquidity (>1Y)
Funding via structured and non-structured
Unsecured short-term and medium-term funding capital market products
Products offered for local cooperative banks‘
Commercial paper
(institutional investors) 22%
own-account and customer-account
securities business and to institutional clients
Secured funding through issuance of
45% Local cooperative Pfandbriefe / DZ BANK BRIEFE by
Corporate customers,
institutional customers 15% banks DZ BANK, DZ HYP and DVB on a
decentralized basis
Other banks, 19% Long-term funding requirements in foreign
central banks currencies are covered through the basis
swap market, ensuring matching maturities
Page 46 2019 DZ BANK - Corporate presentation4. Business segments
Business segments – overview
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.
Seite 48 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 49 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 50 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 51 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 37% in the capital
protection certificates product group
− Market share of more than 39% 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
1Source: Deutscher Derivate Verband
Market share in the structured securities product group as of 30.06.2019, Market share by volume
Page 52 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 53 2019 DZ BANK - Corporate presentationCorporate Banking
DZ BANK AG
Finance
Research
International business
Risk management
Investment products
Payments
Page 54 2019 DZ BANK - Corporate presentationCorporate Banking
We are there for our customers: at local, regional and
international level
Local Regional International
Hamburg
Oldenburg
London Moscow
Hannover Berlin Frankfurt
Münster New York Istanbul Beijing
Düsseldorf Leipzig
Dresden Mumbai
Hongkong
Coblenz Singapore
Frankfurt
Jakarta
Nuremberg
Region Northern & Eastern Germany São Paulo
Karlsruhe
Region West / Central Germany
Stuttgart Region Baden-Württemberg
Region Bavaria Central Division Corporate Banking Branch
Munich
Rep. Office
HQ
Page 55 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 56 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 57 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 58 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
M − Cash deposit machine services − Securities transaction processing
− Capital market and custody services
− Additional products
Page 59 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 / Central Germany +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 61 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 62 2019 DZ BANK - Corporate presentation
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