Investor presentation - April 2021 - pfandbrief.market
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Investor presentation April 2021
Leading lender for green
1990 and social infrastructre 4.7million
FOUNDING YEAR CLIENTS
100% subsidiary
of BayernLB
Second largest Local authorities. companies
and retail clients
onlinebank in Germany
Industry Leader in
sustainability
110 billion 77billion
BALANCE SHEET TOTAL CLIENT LOANS
One of the top 20 banks in Germany
in Germany
4.500 954 million
EMPLOYEES NET INTEREST INCOME
Target: Sustainable TechBank
Stable Development. Despite Corona crisis.
Business Results
Continued growth in lending business across Net interest income at previous year's level with
all segments of EUR 7bn EUR 954m
Significant deposit growth of EUR 11.6bn Profit before tax of 249m above expectations
The main driver of the increase in total assets Investments in transformation. digitization and
is participation in the TLTRO programme with restructuring as main cost drivers
EUR 14bn
Risk Ratios
Robust credit portfolio in the environment of the Return on equity: 7.7%
corona crisis due to focus on sectors largely
Cost-Income-Ratio: 61.2%
independent of economic cycles
Equity ratio: 11.6%
Improved risk result compared to the previous year
3 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
Corona-crisis impact. Minor.
Germany Business Development
Comprehensive package of measures by the Up to 90% of employees took advantage of the home
German government and federal states to office option in 2020
combat the economic consequences of corona Support of borrowers with the help of promotional
Public authorities and development banks as loans and other tools
financiers and guarantors for many aid Stable core business
programmes
Risk management Credit risk
Operational risks limited by digital mindset and Credit Risk Task Force established to monitor and
appropriate technology and processes manage the Corona crisis
No relevant liquidity effects DKB's business almost exclusively in Germany
Equity exposure in the low three-digit range Only single customer groups affected by Corona
pandemic - including tourism
Bond exposure almost exclusively in LCR-eligible
bonds of core European issuers
4 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
Covid-19. Impact scenario analysis.
Loan volume (EUR bn) Corona impact scenario
30
German Savings Banks Association
Housing (DSGV) has published a scenario
24,5 analysis regarding the impact of
Covid-19
20 Local authorities &
social infrastructure Based on economic sectors and
16,8 DSGV industry forecast
Considers supply shortfalls. the drop
Environmental
technologies
in demand and the government
10 interventions
8,9
Food & agriculture Individual clients Impact index (6 = strong impact of
3,8 Energy & supply 2.6 Other corporates
7,2 crisis. 1 = low impact)
(incl. Tourism)
1,3 “Translation” of the impact index into
0 DKB client groups
DSGV
0scale 1 2 3 4 5 6
Source: DSGV and DKB
5 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
Agenda.
1 Business model
2 Facts and figures
3 Sustainability
4 Funding
5 Contact
6 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
1
Business model.
2
7 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
Ownership structure. Munich. Berlin.
Free State of Bavaria Association of Bavarian Savings Banks
≈ 75 %
BayernLB Holding AG ≈ 25 %
100%
Binding letter of comfort and profit/loss transfer agreement
Real Estate &
Corporates & Markets
Savings Banks/Association
Specialized bank for future Real estate financier in Germany Innovative Tech-Bank with
sectors and chosen markets abroad sustainable focus (#geldverbesserer)
Structuring experts Central Bank of the Bavarian Strong earnings growth planned
savings banks and partner for through targeted doubling of customer
Focused financial markets offer
public business base
8 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
Business model. Market leadership.
Infrastructure
48.6
Second biggest
Online Bank in
Germany Financing of services for the
public welfare
Market leader
regarding current
accounts Retail clients
13.8
Biggest renewable
energy portfolio in Projects usually with a
Germany municipal background
Corporate
Market leader in clients
14.0
agricultural
business Loan volume
=
70% of total assets
9 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
Business units. Two.
26 branches
Business customers Retail clients
across
Germany Online
Infrastructure Corporate clients approach
7.2bn
8.9bn 8.7bn
24.5bn
Energy & New energies
supply 2.5bn
3.8bn Mortgage loans
16.8bn
Housing
Personal loans
2.6bn
1.3bn Food &
agriculture
Local authorities & Individual clients
social Other and other
infrastructure corporates
10 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Customer strategy. Growth. Sustainability.
8m clients until 2024
9,0
8,0
7,0
6,0 Scalability of
lending
5,0 DKB Broker business
4,0
3,0
Increase
2,0 Expansion of profitability
product range
1,0 DKB Cash
0,0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
11 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Digitization. Key to success.
DKB Crowd
Own Fintech
Stake in municipal
funding platform
12 I Investor presentation I April 2021 I IFRS-data as of 31/12/20202 Facts & Figures. 13 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
Overview.
Key figures* 2020 2019 2018 2017 2016 2015
Total assets 109.840 m 83.754 m 77.388 m 77.323 m 76.522 m 73.429 m
Customer receivables 76.557 m 69.526 m 65.933 m 64.552 m 63.228 m 61.582 m
Customer liabilities 72.409 m 60.767 m 54.366 m 53.931 m 53.438 m 48.558 m
Net interest income 954 m 954 m 945 m 935 m 795 m 790 m
Profit after tax 249 m 298 m 301 m 263 m 327 m 225 m
Cost income ratio (CIR) 61.2% 56.7% 51.5% 50.8% 45.8 % 48.0 %
Return on equity (ROE) 7.7% 9.5% 10.2% 9.6% 12.4 % 9.6 %
Equity ratio 11.6% 11.1% 11.1% 10.5% 10.0 % 9.1 %
* DKB Group in accordance with IFRS. Angaben in EUR
14 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Business performance. Positive.
Loan volume (EURbn) Customer deposits (EURbn)
+7.1 76.6
65.9 +3.6 69.5 0,2 72.4
0,2 13,8 +11.6
0,1 12,8 +6.4 60.8 4,6
12,4
14,0
54.4 3,6
13,5 4,0
13,2
49,4
40,8
35,0
43,0 48,6
40,2
2,4 2,3 2,5
13,0 14,1 15,9
2018 2019 2020 2018 2019 2020
Infrastructure Corporates Retail Other Infrastructure Corporates Retail Other
Growth was driven by all segments, especially the Exceptional growth in deposits, especially in the retail
customer groups, products: customer segment
- Local authorities & social infrastructure Slight increase in deposit volumes in the corporate
- Housing customer segment
- Mortgage Loans
15 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Earning figures. Solid.
Net interest income (EURm) Cost Income Ratio LCR
61,2% 31.12.2020 356%
56,7%
945 954 954 51,5%
31.12.2019 164%
2018 2019 2020 2018 2019 2020
Net profit after tax (EURm)
Tourismus Return on equity Leverage Ratio
10,2% 9,5% 31.12.2020 3.64%
7,7%
301 298
249
31.12.2019 3.71%
2018 2019 2020 2018 2019 2020
16 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Risk and figures. Improved.
RWAs based on SA* (EURbn) Risk result (EURm) Equity ratios (SA*)
10.8% 11.1% 11.6%
69,5 76,6 9.4% 9.3% 9.6%
65,9
- 112
31,5 33,2 33,7
- 56 - 39 9.1% 9.1% 9.1%
2018 2019 2020 2018 2019 2020 2018 2019 2020
Equity ratio
Loan book RWAs Core capital ratio (T1)
Common equity ratio (CET1)
Loan portfolio quality Non Performing Loans Capital measures
0,5%
1,1% Investmentgrade (bis BBB-)
0.9% 0.9% Equity increase of EUR 200
9,9% 0,5%
Non-Investmentgrade (bis BB-) million through capital reserve
Non-Investmentgrade (bis C) allocation by BayernLB
88,6%
Non Performing Loans 2018 2019 2020
* Standardised approach (SA)
17 I Investor presentation I April 2021 I IFRS-data as of 31/12/20203 Sustainability. 18 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
Sustainability. A business model.
1996
First wind 2001 2004 2011 2018
turbine Launch of the 2014 First social bond
Establishment of EMAS- Account opening 2016
financed. online bank. DKB STIFTUNG. issued.
Certification process First green bond
becomes 100% issued.
digital.
1998 2002 2009 2015
First public- First day-care
Sustainability Industry
private centre for
management Leader with
partnership children (Kita). 2020
2000 embedded ISS-oekom for 2019
project.
First 2003 directly in the 2013 the first time. 2017
World's first blue
biogas First Board of DKB Bürger- New forms of
social bond
plant. PV plant Management. sparen work through
issuance
financed. scheme. “Projekt Arbeiten
4.0” project.
19 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Sustainability approach. Blue.
Differentiation Blue sustainability
Expansion of the concept
of sustainability Ecological + social
Sustainable Development Orientation towards people's
Goals (SDGs) as a needs
strategic foundation Positioning sustainability in the
Inclusive instead of mainstream
exclusive
20 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Sustainability goals. Ambitious.
Until 2023 Until 2030
the most convincing sustainable Become carbon neutral
product range among the top 20 in our office operations
banks
Until 2050
Until 2030 Meet the 2-degree-goal with
EUR 80bn in sustainable all DKB products
financing
Source: DKB Sustainability Strategy 2019
21 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020SDGs. Mapping.
Signi-
ficant Share of
Sub- Volume Change vs. loan Customer groups according
targets Description in € bn 2018 portfolio to Bundesbank code
Access to financial Private customers, employees,
1.4 services 10.6 bn € +4.5% 15.8% family members & others
Access to
3.8 healthcare 2.6 bn € +13.7% 3.8% Doctors, nursing & hospitals
4.1; 2; 3; Schools, kindergartens,
Access to education 0.8 bn €
77,8%
5 -16.6% 1.2% universities and inclusion
Access to clean
6.1; 3 water 0.8 bn € -3.0% 1.2% Water / sewage, waste
of our customer
7.2; 3; a; Support for Wind, solar, bioenergy, loans (EUR 54.1bn)
b renewable energies 9.9 bn € +0.5% 14.9% hydropower & energy efficiency
have a significant
Access to Public transport, communal & contribution
9.1 affordable housing 16.7 bn € +6.1% 24.8% cooperative housing
Justice & strong Municipalities, foundations, public
16.3; 6 institutions 10.6 bn € +6.5% 15.9% institutions & corporations
17.1 Improve tax levies 0.1 bn € +14.7% 0.8% Tax consultancy
Source: DKB Annual Report 2019 (Data from 31.12.19)
22 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Sustainable performance. Outstanding.
Industry Leader since 2015
Decile Rank: 1
Peergroup: Financials/ Public & Regional
Banks
Size of peer group: 277 Banks
23 I Investor presentation I April 2021 I IFRS-data as of 31/12/20204 Funding. 24 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
Credit. Ratings.
Mortgage
Agency Type of rating Public Pfandbriefe Senior Unsecured
Pfandbriefe
Moody‘s Covered Bond Rating Aaa Aaa
Issuer Rating
A1
(senior preferred)
Junior Senior Unsecured
A2
(senior non-preferred)
Adjusted BCA baa1
Outlook stable
ISS-ESG Sustainability rating - - B- (Prime)
imug Sustainability rating Very positive (A) Positive (BBB) Positive (BB)
25 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Funding. Mix.
2%
4%
Primary funding source, 8%
Customer deposits diversified through all client segments
13%
Development Pass-through and global loans
banks (e.g. from KFW. EIB. Rentenbank) Liabilities**
62%
Since 2006 mainly via Pfandbriefe 11%
Capital markets
Since 2016 Green Bonds
funding Since 2018 Social Bonds
Customer deposits
Central bank operations on an opportunistic basis. Development Banks
Central Bank Participation in TLTRO III with EUR 14bn due to ECB
Capital market
attractive conditions Equity
Other
* Treasury perspective without registered bonds held by non-banks
** In relation to total assets
26 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Funding strategy. Exclusively sustainable.
Focus:
Three Green Bond issuances: Green and Social Bonds
First Senior Unsecured 16%
Green Bond in Germany (2016). Future issuances
further issuance (2017) EXCLUSIVELY in
First Green Bond complaint with 11% sustainable formats
EU Green Bond Standard and As green or social bonds
Taxonomie (2021) or new sustainable bond
formats
73%
Three Social Bond issuances: For both benchmark
First social covered bond (2018) transactions and private
Conventional issues
placements (in progress)
First Blue Social bond (2019) Social Bonds (Pfandbriefe)
First Retail Social Bond (2019) Green Bonds (Sen. Unsecured)
27 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Funding. Volume.
Placement volume (EURm) Maturity profile (EURm)
2500 2000
2000 1500
1500
1000
1000
500 500
0 0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Pfandbriefe Senior unsecured (Green Bond) Social Bond Pfandbriefe Social Bond Senior unsecured (Green Bond)
• Capital markets funding depends on deposit
growth and maturities
• New driving factor: ECB actions, in
particular TLTRO
28 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Green. Bonds.
Renewable energy portfolio: EUR 10.8bn
!
10.000
8.000
6.000
Funding
4.000
2.000
0
Wind Photovoltaik Sonstige
Green
Bonds
2016 500m EUR Senior non-preferred
2017 500m EUR Senior non-preferred
Reporting
2021 500m EUR Senior preferred new
29 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Social. Bonds.
Social Funding
infrastructure
Social
Bonds
2018 500m EUR Social Pfandbrief
2019 Retail Social Pfandbrief
Reporting
2019 500m EUR Blue Social Pfandbrief
30 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Public Pfandbrief. Cover pool. Federal
Republic of
Germany
Municipal 0.2%
service
authorities Federal States
0,0% 9,1%
Cover assets Number Volume
German federal government 6 13
German federal states 109 965 100% German assets
German cities and municipalties 5,383 7,701 High granularity (Ø-Volume: Cities and
Other cover assets 1 1 EUR 1.5m) municipalities
(GER)
90,7%
Total 5,499 8,680
Volumen in EURm
Key figures*
Aaa
Outstanding bond volume (EURm) 4,424.8
Rating over-collateralization Aa1
requirements significantly
Rating Moody's Aaa
exceeded
Over-collateralization required by
1.0%
Moody‘s Collateral score stable on
NPV over-collateralization 98%
low level
Collateral score 2.4%
Collateral Score Rating
* As of December 2020
Source: Moody’s
31 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Public Pfandbrief. Cover pool.
Overcollateralization Distribution of volumes
(EURm) (EURm)
2500
2000
1500
1000
500
0
up to 1 up to 2 up to 3 up to 4 up to 5 up to over 10
year year year year year 10 year years
In circulation Cover pool
32 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Mortgage Pfandbrief. Cover pool.
Thuringia 6%
Baden-Württtemberg 5%
Schleswig Holstein 2% Bavaria 5%
Cover assets Number Volume Saxony-Anhalt 7%
Berlin 11%
Residential loans 33,584 1,805 100% Germany Saxony 11%
Housing-industry investors 3,232 4,958 Very high granularity Saarland 0.4%
Brandenburg 11%
Other cover assets 10 410
Housing-industry investors Rhineland-Palatinate 1% Bremen 1%
Total 36,826 7,173 are mainly residential
Northrhine-Westphalia Hamburg 3%
Volume in EURm property companies 15%
Lower Saxony 5% Hesse 8%
Meckenburg Western
Pomerania 7%
Key figures* Aaa
Aa1
Outstanding bond volume (EURm) 4,283.5 Aa2
Rating Moody's Aaa Rating over-collateralization
Over-collateralization required by requirements significantly
11.5%
Moody‘s exceeded
NPV over-collateralization 66.4%
Collateral score 8.6%
Collateral Score Rating
* As of Dezember 2020
Source: Moody’s
33 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Mortgage Pfandbrief. Cover pool.
Overcollateralization Distribution of volumes
(EURm) (EURm)
2500
2000
1500
1000
500
0
up to 1 up to 2 up to 3 up to 4 up to 5 up to 1 above
year years years years years years 10
years
In circulation Cover pool
34 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020Mortgage. Cover pool.
Type Type. Details
2% 0%
1% 1%
8%
19%
71%
98%
Apartment buildings One- and two-family houses
Residential Commercial Condominiums Office building
Trade building Other (for commercial purpose)
35 I Investor presentation I April 2021 I IFRS-data as of 31/12/20205 Contact. 36 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
Personal.
Uwe Jurkschat
Head of Funding and Investor Relations
Tel.: +49 (0)30 12030-2924
E-Mail: uwe.jurkschat@dkb.de
Anna Stawowy
Funding and Investor Relations
Tel.: +49 (0)30 12030-2910
E-Mail: anna.stawowy@dkb.de
Hannes Merlecker
Funding and Investor Relations
Tel.: +49 (0)30 12030-3317
E-Mail: hannes.merlecker@dkb.de
www.dkb.de
Follow us on
@DKB_deDisclaimer The information in this presentation constitutes neither an offer nor an invitation to subscribe to or purchase securities. It does not represent a recommendation to buy, sell or hold any securities. The information in this presentation is solely intended for informational purposes and does not serve as a basis for any kind of obligation, contractual or otherwise. The presentation may not be copied in whole or in part, distributed, forwarded or sent directly or indirectly by any means to a third party without prior written consent. Statements in this presentation represent solely the opinion of Deutsche Kreditbank AG. All the information contained in this presentation has been compiled with care. However, Deutsche Kreditbank AG does not expressly or silently guarantee the accuracy, completeness or suitability of the information in this presentation for any particular purpose. Deutsche Kreditbank AG assumes no direct or indirect liability from this presentation. Furthermore, investors should bear in mind that statements concerning past performance do not indicate or represent a guarantee of future performance or returns. Deutsche Kreditbank is under no obligation to update or regularly review the information in this presentation. This presentation may be subject to legal restrictions in some jurisdictions. All persons in possession of this presentation are explicitly advised to personally inquire about any restrictions that may apply and to comply with them. The information may not be used in foreign jurisdictions without permission. 39 I Investor presentation I April 2021 I IFRS-data as of 31/12/2020
You can also read
