Investor presentation - 3rd Update 2021 Münchener Hypothekenbank eG | muenchenerhyp.de - MünchenerHyp
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Investor presentation
3rd Update 2021
Münchener Hypothekenbank eG | muenchenerhyp.de
Disclaimer
DISCLAIMER
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Disclaimer
Contents Introducing MünchenerHyp 4 Sustainability 11 Capital and Creditor Protection 13 Funding 17 Appendix 23 Contents 3
Key Facts at a Glance
systemic important bank under direct ECB supervision
independent from any corporate group and member of the cooperative FinanzGruppe
51.0 bn Euro total assets
broad based ownership; no predominant owner
Moody’s issuer rating: Aa3 senior unsecured (negative outlook), A2 junior senior unsecured
favourable funding by Pfandbrief privilege
Pfandbrief licence: continuous issuing of benchmark bonds and private placements
Moody’s Pfandbrief rating: - Aaa for Mortgage Pfandbriefe
- Public Sector Pfandbriefe rating terminated, no longer within Bank’s business strategy (as per 08.09.20)
deep roots within the Cooperative Financial Network (“FinanzGruppe”)
partner of Volksbanken and Raiffeisenbanken in the mortgage lending business
Volksbanken and Raiffeisenbanken as most important business partners and biggest owner group
excellent access to liquidity via the cooperative institutions
strong protection scheme with guarantee fund and guarantee network
sustainable business model
sustainability as integral part of the long-term and risk conservative business model
focus on co-operative mission, no profit maximisation
Date of information: 30/06/2021
Introducing MünchenerHyp 4Ownership and Equity
The members as largest capital investor
membership
as per 30/06/2021
approx. 64,400 members
16.88 million non-terminated co-operative shares in EUR million
equity components
70 Euro nominal value, no trading Common Equity Tier 1 1,557.8
1,181.7 million Euro total amount of non-terminated Pa i d-up ca pi ta l 1,181.7
Res erves 347.0
co-operative shares Speci a l i tems for genera l ba nki ng ri s k 55.0
Deducti bl e i tems - 25.8
Additional Equity Tier 1 113.8
impact on strategy and business Tier 2 Capital 38.8
Total Equity 1,710.4
long-term profitability and business sustainability
conservative risk policy
no major shareholder
ownership structure
continuous dividend capability 30/06/2021 Co-operative primary
EUR 1,181.7 m banks
25.2% Other FinanzGruppe
companies
4.0% Customers and other
members
70.8%
Date of information: 30/06/2021
Introducing MünchenerHyp 5Ratings
Münchener Hypothekenbank eG
Moody's Rating Outlook
public-sector Pfandbriefe terminated*
mortgage Pfandbriefe Aaa
senior unsecured (preferred senior notes) Aa3 negative
junior senior unsecured (non-preferred senior notes) A2
short-term liabilities Prime-1
long-term deposits Aa3 negative
AT1 rating Ba1 (hyb)
Münchener Hypothekenbank eG within the Cooperative Financial Network
Fitch Rating Outlook
long-term AA- stable
short-term F1+
Cooperative Financial Network
S&P Rating Outlook
long-term A+ stable
short-term A-1
* i s s ua nce of Publ i c Sector Pfa ndbri efe i s no l onger wi thi n Ba nk's bus i nes s s tra tegy
Date of information: 31/07/2021
Introducing MünchenerHyp 6Business Performance – part I
Continuous positive business development
new loan business at good level despite corona crisis
loan business mortgage loan portfolio (€ bn) new loans residential (€ bn) new loans commercial (€ bn)
38.4 40.0 4.3 4.7
32.0 35.5 3.9 3.7 2.0 2.1
29.2 1.7
2.1 1.2 1.0
2017 2018 2019 2020 30/06/ 2017 2018 2019 2020 30/06/ 2017 2018 2019 2020 30/06/
2021 2021 2021
net income (€ m) net interest income (€ m) total administrative expenses (€ m)
profitability
131.3 128.4
46.3 48.7 347.8 113.6
37.7 280.1 299.8 99.6
35.7 256.6
187.9 68.1
18.3
2017 2018 2019 2020 30/06/ 2017 2018 2019 2020 30/06/ 2017 2018 2019 2020 30/06/
2021 2021 2021
Date of information: 30/06/2021
Introducing MünchenerHyp 7Business Performance – part II
Crisis-resistent in the ECB stress test 2021
MünchenerHyp maintains high capital ratios and meets regulatory requirements
common equity tier 1 capital ratio (%) tier 1 capital ratio (%) total capital ratio (%)
capital
23.8 25.2
21.7 19.8 20.6 19.7 23.8 21.7 22.2 22.9 22.1 22.8 21.6
21.4 21.1
2017 2018 2019 2020 30/06/ 2017 2018 2019 2020 30/06/ 2017 2018 2019 2020 30/06/
2021 2021 2021
LCR (%) NSFR (%) Leverage Ratio (%)
regulation
765.5
563.4 112.2
480.4 421.2 107.2 104.8 3.6 3.6 3.6
103.3 101.2 3.4 3.4
285.7
2017 2018 2019 2020 30/06/ 2017 2018 2019 2020 30/06/ 2017 2018 2019 2020 30/06/
2021 2021 2021
Date of information: 30/06/2021
Introducing MünchenerHyp 8Mortgage loan portfolio
The portfolio impresses with its high granularity
loan portfolio mortgage loan portfolio as per 30/06/2021
39.96 bn Euro
*)
217,752 individual loans L.-t.-sust.-value ratio EUR millions % % cumulative
volume by type of underlying property: Up to 60% 15,687 39.26% 39.26%
Over 60 to 70% 6,488 16.24% 55.49%
80.1% residential Over 70 to 80% 7,069 17.69% 73.18%
19.9% commercial
LTV
Over 80 to 90% 3,554 8.89% 82.08%
Over 90 to 100% 2,893 7.24% 89.32%
average loan size: Over 100% 4,252 10.64% 99.96%
about 148,000 Euro residential properties Without 16 0.04% 100.00%
about 6,600,000 Euro commercial properties Total 39,960 100.00%
*)Theterms of the German Pfandbrief Act (PfandBG) define the sustainable value of
average loan-to-value ratio: property as, being generally 10-15% below the open market value of the property.
63.8% residential buildings
85.7% commercial buildings Links:
geographic split: §28 Pfandbrief Act - further cover pool information
useful links
45.9% Bavaria, Baden-Württemberg, Hesse https://www.muenchenerhyp.de/sites/default/files/downloads/
dsdfdg and North Rhine-Westphalia 2021-07/Para_28_20210630_englisch_0.xls
27.5% other German States ECBC Label
5.5% Berlin https://www.muenchenerhyp.de/sites/default/files/downloads/
11.8% Switzerland 2021-07/HTT_2021_MuenchenerHyp_202106_4.xlsx
9.3% other non-domestic
NPL- ratio is at 0.45% (as per 31/12/2020) Date of information: 30/06/2021
Introducing MünchenerHyp 9Business Areas
Diversified growth in the mortgage portfolio across sectors and regions
Business Areas Residential Mortgages Commercial Mortgages
Approach Financing of privately used residential real estate Financing of predominantly offices and retail properties
Distribution network of the cooperative banking sector Attractive funding basis, expertise and a quick decision
Competitive Strength
and partnerships (PostFinance, Switzerland) making process
Products Fixed rate loans with amortisation up to 40 years Broad product range
Germany 82.5% Germany 67.5%
Geographical Focus Switzerland 15.6% Western Europe 25.1%
Others 1.9% USA 7.4%
Volum e in bn EUR Volum e in bn EUR
19.9%
Share of business by type & 30.9 32.0
24.9 26.5 28.8
development of portfolio 80.1% 5.5 6.7 7.5 8.0
4.3
2017 2018 2019 2020 30/06/ 2021 2017 2018 2019 2020 30/06/ 2021
Date of information: 30/06/2021
Introducing MünchenerHyp 10Sustainability within MünchenerHyp
Sustainability in all business areas
Sustainability Assets Liabilities
green mortgage loan for residential properties ESG Pfandbriefe
- focus on energy efficency; improved interest rate green senior preferred bonds
Products
certified commercial properties green senior non-preferred bonds
- top criteria of important certification systems green commercial paper
number of loans 7,566 number of outstanding bonds
Engagement - 7,523 residential properties - 10 EUR bonds
- 43 commercial properties - 4 CHF bonds
EUR 2,716 m total loan volume total volume of outstanding bonds
Volume - EUR 1,640 m residential loans - EUR 1,125 m
- EUR 1,076 m commercial loans - CHF 810 m
green portfolio in EUR m green bond in EUR m
residential cover
assets
766.1
ESG Pfandbriefe
commercial cover 500.0
Distribution 518.4 assets 832.8 senior preferred
residential assets senior non-preferred
1,121.1 310.0
outside cover pool
543.1 CP
commercial assets
outside cover pool
Green Bond Framework Allocation Reporting
Green Standards Second Party Opinion Non-Financial Report
(several links)
Impact Reporting
Stand: 30/06/2021
Sustainability 11Sustainability Ratings
Good ratings confirm the sustainability of MünchenerHyp
Social Rating B- MünchenerHyp is rated 4th out of 130 companies in the
Environmental Rating C+ sector Financials/Mortgage & Public Sector Finance, status:
Rating C+ 18/12/2020
imug has suspended sustainability ratings for bank bonds
in principle
The lower the risk score, the more robust the
18.5% company's sustainability management.
ranking 3rd within the peer group; status: 21/07/21
Sustainability 12Limited Bail-in Risk
Limitation of the bail-in risk of MünchenerHyp as a result of the two pillar approachs
Pillar I –
Bail-in cascade as per German Pillar II – Bail-in risk
Recovery and Resolution Act1 Protection scheme by the BVR MünchenerHyp
Volume outstanding:
CET1 1,557.8 m EUR
CET1 §1 statute of the BVR Bail-in risk can be limited by
AT1 113.8 m EUR
protection scheme preventive measures of the
support mechanism of the
AT1
T2 38.8 m EUR „The task of a bank-related Cooperative Financial Network
protection scheme by the BVR
T2non-
senior is to avert or remedy “Priority of support
6.3 bn EUR mechanism of the BVR versus
preferred impending or existing financial
senior unsecured & difficulties at it affiliated implementation of BRRD2 or
institutional deposits banks.“ SRM3 instruments4”
senior preferred 3.8 bn EUR
Pfandbriefe 31.6 bn EUR
Pfandbriefe
1 Ingerman known as: Sanierungs- und Abwicklungsgesetz (SAG)
2 Bank Recovery and Resolution Directive (BRRD)
3 Single Resolution Mechanism (SRM)
4 Hofmann, Gerhard. Member of the Executive Board BVR. (2014):Europäische Bankenunion: Perspektiven und Handlungsoptionen für die genossenschaftliche FinanzGruppe, In: Wissenschaft und Praxis im Gespräch
Universität Münster, Münster den 26. Mai.2014.
Date of information: 30/06/2021
Capital and Creditor Protection 13Creditor Protection
creditor protection against risks
support mechanism
Guarantee Fund of the Bail-in cascade as per
Guarantee Fund and Guarantee Network SAG/BRRD
Cooperative Financial
managed by the Cooperative Financial Network (BVR) Network (“FinanzGruppe”) segregated cover pool
oldest support mechanism in Germany
Pfandbrief
Investor
tasks
preventive actions Guarantee Network of the Pfandbrief Act
“FinanzGruppe”
reorganisation measures
history Guarantee Fund of the
Bail-in cascade as per
Cooperative Financial
no bankruptcy Network (“FinanzGruppe”)
SAG/BRRD
no loss of the notional amount of the co-operative shares
no loss of deposits Capital / Senior
Investor
Guarantee Network of the
“FinanzGruppe”
Capital and Creditor Protection 14Capital Position
MünchenerHyp comfortably exceeds the regulatory minimum CET1 requirements
capital position as per 30/06/2021
Münchener Hyp‘s mid year 2021 CET1 ratio of
19.67% is comfortably above the minimum SREP 21.60%
in % RWA
requirement of 7.88% 0.49%
capitalisation
1.44%
12.04%
MünchenerHyp has not been identified as an Other Tier 2
Systemically Important Institution (O-SII) and hence 19.67%
2.38% AT1
1.78% CET1
is not required to meet an O-SII charge currently
7.88%
actually Germany has not activated the
capital ratio capital requirements
countercyclical capital buffer (CcyB)
19.67% in % RWA
ADI amount to EUR 393.7 m (as per 31/12/2020)
CET1 Quote
Countercyclical capital buffer
RWA add up to EUR 7,919.2 m 7.88%
Capital Conservation Buffer
Pillar 2 requirement
19.67% Pillar 1 requirement
0.04%
2.50% CET1
0.84%
4.50%
CET1 ratio CET1 requirements
Date of information: 30/06/2021
Capital and Creditor Protection 15MREL and liability structure
MREL requirements are fulfilled in the long term
structure of liabilities
portfolio as per 30/06/2021
14,000 in EUR million
large outstanding volume of MREL-eligible Senior
Non-Preferred Bonds (SNP) due to many years of 12,000
issuing activity 10,000 3,825.9
SP
8,000 SNP
T2
6,000
bonds with medium and long-term maturities 5,620.4 6,284.4
AT1
4,000 CET1
2,000 113.8
113.8
MREL requirements are conveniently fulfilled both 0
1,557.8 1,557.8
now and in the future MREL eligible total
9,000 in EUR million
high buffer for Senior Preferred (SP) investors 8,000
2,105.5
7,000
available
development
6,000 2,012.5
SP
5,000
SNP
5,214.3
4,000
AT1
3,324.5 607.6
3,000 CET1
1,239.0
2,000
113.8 113.8 113.8
1,000 1,557.8 1,557.8 1,557.8
0
in 3 years in 5 years in 10 years
the maturities are based on the contractual final maturity
Date of information: 30/06/2021
Capital and Creditor Protection 16Funding Products
MünchenerHyp’s funding
products
public issues private placements money market
Jumbo and Benchmark plain vanilla and structured overnight deposits
Pfandbriefe public and mortgage term deposits
public and mortgage Pfandbriefe CP
Pfandbriefe senior preferred and senior Repos, securities lending
senior preferred and senior non-preferred issues
non-preferred issues
Issuance Programmes
Debt Issuance Programme Stand-Alone-Documentation 5 bn Euro CP Programme
German law registered mortgage bonds bilateral business
denomination EUR 1,000 or registered public sector bonds
EUR 100,000 promissory note bonds
tenor up to 50 years registered bonds
tenor up to 50 years
all products in EUR; currencies CHF, GBP and USD on request
various products also in sustainable (green) format on request
Funding 17Funding and maturity profile
MünchenerHyp has a comfortable funding and maturity profile across senior and covered debt
as per 30/06/2021
Most of the upcoming maturities of MREL
eligible senior non-preferred has already in EUR million
8,000
been replaced within the ongoing funding 7,000 1,013 Bearer Bonds (senior non-preferred) and
activities 6,000 Promissory Notes
705 1,591
funding
the funding plan provides for a balanced 5,000 1,375 506 Bearer Bonds (senior preferred) and
Promissory Notes
distribution across all refinancing products 4,000 2,147 1,221 901 Mortgage Pfandbriefe
3,000 35 849
Cost efficient access to senior funding via the 2,000 4,198
4,787 4,869
Public Sector Pfandbriefe
Cooperative Financial Network 1,000
2,810 3,002 2,581
MünchenerHyp regularly issues benchmark 0
2016 2017 2018 2019 2020 30/06/ 2021
Pfandbriefe in various currencies and also in
sustainable format in EUR million
4,000
permanent offer of private placements with
maturity profile
395
tailor-made terms and structures 3,000 630
650
Bearer Bonds (senior non-preferred)
and Promissory Notes
531 347
128 186 Bearer Bonds (senior preferred) and
2,000 114 716
Promissory Notes
2,560 209 836
1,970 1,960 Mortgage Pfandbriefe
1,000 1,868 45
1,063
828 Public Sector Pfandbriefe
121 70 111 160 95 125
0
2021 2022 2023 2024 2025 2026
the maturities are based on the contractual final maturity / differentiation SP and SNP effective from 2018
Funding 18MünchenerHyp’s € Benchmark-Pfandbriefe
MünchenerHyp has a long history as an issuer
1.25
1.00
ecological ESG Pfandbrief
Issue volume in EUR billions
0.75
1.125
0.50 1.00
0.75 0.75 0.75 0.75 0.75 0.75
0.25 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50
0.00
Coupon 0.375% 1.75% 0.50% 0.01% 0.25% 1.50% 0.50% 0.50% 0.625% 0.625% 0.625% 2.50% 0.125% 0.25% 1.00% 0.01% 0.01%
Maturity 10/11/21 03/06/22 07/06/23 05/09/23 13/12/23 25/06/24 14/03/25 22/04/26 23/10/26 07/05/27 10/11/27 04/07/28 05/09/35 02/05/36 18/04/39 19/10/39 02/11/40
Mortgage Pfandbriefe Total volume of EUR Benchmark-Pfandbriefe outstanding: EUR 11.125 bn Date of information: 31/07/2021
Funding 19Lately issued Benchmark-Pfandbriefe
Issue 7/2021: GBP 0.35 bn, approx. 3.5 years Mortage Pfandbrief, UKT + 39bp
ISIN DE000MHB4446, 16/07/2021 – 11/12/2024
orderbook around GBP 0.5 bn
24 orders from 8 countries
Investors Geographic split
Germany
90.7% Nordics
Asset 20.0% Switzerland
Manager & 8.2%
Central Banks Funds 29.7% Germany
& OI 32.4% 31.9% APAC 4.4%
Andere
Banks 37.9% UK 0.9%
34.6%
Funding 20Lately issued Benchmark-Pfandbriefe
Issue 5/2021: EUR 0.50 bn, 15 years Mortage Pfandbrief, MS - 3bp
ISIN DE000MHB28J5, 04/05/2021 – 02/05/2036
orderbook around EUR 1.1 bn
44 orders from 5 countries
Investors Geographic split
Insurances &
Pension Funds
32.0%
Switzerland 4.5%
Central Banks
& OI 16.2% Germany Italy 3.2%
90.7%
Banks 36.6% Other Europe
Asset Manager 1.6%
& Funds 15.2%
Funding 21Lately issued green senior non-preferred benchmark
Issue 3/2021: EUR 0.50 bn, 8 years green senior non-preferred benchmark MS + 57bp
DE000MHB27J7, 10.03.2021 – 09.03.2029
orderbook around EUR 0.9 bn
117 orders from 13 countries
Investors Geographic split
Southern
Asset Manager & Europe
Funds 38.1% 11.9% Austria & Switzerland
5.0%
Insurances Germany UK & Ireland 4.1%
Banks 14.2% 74.7%
44.8% Asia 2.5%
Other Europe
Central banks &
1.8%
OI 2.4%
Others 0.5%
Funding 22Contact Information Münchener Hypothekenbank eG Karl-Scharnagl-Ring 10 D-80539 München Telephone: +49-89-5387-0 Telefax: +49-89-5387-77-5591 Bloomberg: MHYP Internet: https://www.muenchenerhyp.de Treasury – Debt Investor Relations Rafael Scholz rafael.scholz@muenchenerhyp.de Tel. +49-89-5387-88-5500* Claudia Bärdges-Koch claudia.baerdges-koch@muenchenerhyp.de Tel. +49-89-5387-88-5520* * Phone calls will be recorded Appendix 23
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