Investor Presentation The Helaba Group
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Investor Presentation The Helaba Group Frankfurt / Main, September 2019
Agenda
2
1. Helaba Business Model
2. Helaba as Sparkassen Central Bank
3. Business Development
4. Asset Quality
5. Sustainability in Helaba Group
6. Funding
Helaba
At a glance 3
Sparkassen
Owner
Sparkassen central institute and
12 % Federal States Hesse & Thuringia
88 % Sparkassen-Finance Group
S S- Group business, partner rather
than competitor
Customer Core Markets
Long-term customer relationships Regional focus on Germany and
with corporates, institutional clients, international markets
the public sector and retail
customers
• Total assets: € 213 bn • Pre-tax profit: € 325 m
• RWA: € 58.2 bn • Employees: ca. 6,100
• CET1 ratio1: 14.6 % • Ratings: Moody’s Aa3 / Fitch A+ / S&P A
1) Fully loaded As of March 31, 2019
Helaba‘s Strategic Business Model
4
Helaba‘s Strategic Business Model
5
As a commercial bank Helaba is active both in Germany and
abroad. Helaba works together with companies, institutional
clients, the public sector as well as municipal corporations. Stable,
long-term customer relationships are what characterise Helaba.
Helaba is Sparkassen central bank and preferred service
provider and product supplier for Sparkassen in Hesse, Thuringia,
North Rhine-Westphalia and Brandenburg, accounting for 40 % of
all Sparkassen in Germany. Helaba is a partner of the Sparkassen
rather than a competitor.
As the central development bank of the State of Hesse, Helaba
bundles the administration of public development programmes
through WIBank
Comprehensive Range of Products for our Customers
6
Corporates & Retail & Asset Development
Real Estate Other
Markets Management Business
• Commercial Real • Corporate Finance • Retail Banking • Administration of public • Project development
Estate lending development programs and management
• Sparkassen lending • Private Banking for the federal state of
business Hesse • Retail issues and
• Home loans and
structured bonds
• Capital Markets and savings business
Treasury products • Issuance of own debt
• Asset
instruments
• Cash Management Management
• Residential Real
• Public Finance
Estate portfolio
• Foreign Trade Finance • Custody services
Helaba’s Ownership Structure
Dominated by the Sparkassen sector (88%) 7
Sparkassen Finance Group S Federal States
Savings Banks and Giro
State of Hesse (8.1 %)
Association Hesse-Thuringia (68.85 %)
Free State of Thuringia (4.05 %)
Savings Banks Association
Westphalia-Lippe (4.75 %)
Rhineland Savings Banks and
Giro Association (4.75 %)
FIDES Alpha GmbH (4.75 %)1
FIDES Beta GmbH (4.75 %)2
88% 12%
Helaba is tightly integrated into the Sparkassen-Finance Group
1) FIDES Alpha GmbH, operating as trustee of the regional Savings Banks Associations in its capacity as supporting institution of the regional savings banks guarantee fund
2) FIDES Beta GmbH, Beta GmbH operating as trustee of the German Savings Banks and Giro Association (DSGV) in its capacity as supporting institution of the Guarantee Fund of the
Landesbanken and Girozentralen
Agenda
8
1. Helaba Business Model
2. Helaba as Sparkassen Central Bank
3. Business Development
4. Asset Quality
5. Sustainability in Helaba Group
6. Funding
Helaba and Sparkassen in Hesse-Thuringia
A single economic unit with a unique franchise A single Economic Unit 9
S Group Hesse-Thuringia S Group Hesse-Thuringia
Results 2018
• Total assets: € 259 bn
S Helaba S
Platform for Products
and Services
• Earnings before taxes (IFRS): € 958 m
SME / Retail Customers Wholesale Business
in the Region Joint Risk Management International Markets
• Employees: 24,000
• Locations/Branches: 1,532
Joint Market Presence Joint Risk Management
• Joint business strategy • Uniform risk management strategy
• Full market coverage • Risk monitoring system with early warning indicators
(retail and wholesale business)
• Risk-adjusted contributions to the group’s reserve fund
• Clear allocation of customer responsibility
• Co-ordinated range of products
Joint Group Reserve Fund Consolidated Accounts
• Integrated in joint risk management system • Audited consolidated group accounts since 2003
• Approx. € 555 m in addition to existing nationwide voluntary • Earnings before taxes in 2018 (IFRS): € 958 m
support mechanisms as at 31.12.2018 • Group rating from Fitch Ratings (A+)
• Direct legal investor protection in addition and Standard & Poor’s (A)
to institutional support
The S-Group Concept in Hesse-Thuringia
Cooperation agreements with S-Organisations in NRW and Brandenburg 10
S-Group concept in Hesse-Thuringia based
on the business model as single economic Cooperation agreements with S-Organi-
unit sations in NRW and Brandenburg
Helaba is central institute for Sparkassen Helaba is central institute for Sparkassen
in Hesse and Thuringia in North Rhine-Westphalia
(NRW) and Brandenburg (BB)
Joint sales and market strategy
Joint sales and market strategy
1. Helaba is preferred S-Group
1. Helaba is preferred S-Group partner
partner
2. Target S-Group ratio 60 – 80 % Cooperation 2. Target S-Group ratio 60 – 80 %
3. Clear customer segmentation agreement 3. Clear customer segmentation
4. Co-ordinated range of products
4. Co-ordinated range of products
Corporate Risk monitoring system with S-Group Concept
early warning indicators in Hesse-Thuringa
Risk committee and S-Group Risk and S-Group advisory board
committee with inspection and Consultation but no inspection and
in North Rhine-Westphalia
intervention rights and Brandenburg intervention rights
Regional support funds for the
Regional support funds (only in NRW),
coverage of mutual risks and direct
allocation by Sparkassen in NRW
investor protection
Consolidated IFRS group accounts, joint
group ratingLeading S-Group Bank within the German S-Finance Group
11
Hesse-Thuringia North Rhine-Westphalia
• Home Region with central institute • Home Region with central institute
function for associated Sparkassen function for associated Sparkassen
• Sparkassen and the Federal States • Savings banks associations of NRW
of Hesse and Thuringia are are Helaba’s shareholders
Helaba’s shareholders • S-Group agreement as basis for
• Successful business model of a cooperation; regional support funds in
“single economic entity” with Berlin NRW
S-Group’s Sparkassen; regional Münster • Branch office in Düsseldorf, sales
support funds, consolidated office in Münster
annual accounts and group-ratings Düsseldorf Kassel
• Head offices in Frankfurt / Main Erfurt Brandenburg
and Erfurt Frankfurt • Home Region with central institute
function for associated Sparkassen
and S-Group agreements
• Sales Office Berlin
Stuttgart Other regions
Munich • Focus on Rhineland-Palatinate,
Bavaria and Baden-Wuerttemberg
• Sales offices in Munich, Stuttgart
Head Office Branches Sales Office
and Berlin
Helaba is S-Group Bank for about 40% of the German Sparkassenr rund 40 % aller deutschen
As of January 2018Agenda
12
1. Helaba Business Model
2. Helaba as Sparkassen Central Bank
3. Business Development
4. Asset Quality
5. Sustainability in Helaba Group
6. FundingManagement Summary
Helaba achieves significant rise in half-year earnings 13
Helaba satisfied with growth in operating business; new business and net interest as well as net fee
and commission income above previous year's level
Consolidated net profit before tax of € 325 m significantly higher than in the previous financial year;
result marked by positive effects from the acquisition of KOFIBA (formerly DKD)
Risk situation remains favourable
Continued pressure from increase in general and administrative expenses
CET1 ratio (phased-in and fully-loaded) of 14.6%, total capital ratio of 19.7% still significantly above
regulatory requirementsDevelopment of Key Indicators Reflects Impact of KOFIBA Acquisition
14
Profit before tax Total assets Cost-income ratio Return on equity
in € m in € bn
Target ratio 2019 Target range 2019
< 70% 5.0-7.0%
68.3%1 7.7%1
213
0% 100% 0% 12%
325 163
1) Full consideration of bank levy and contributions paid into the guarantee schemes of the
S-Finance Group
200 CET1 ratio (fully loaded) and Liquidity Coverage Ratio
Requirement Target Ratio
2019 ratio H1 2019
CET1 ratio (fully loaded) 9.85%2 12.5% 14.6%
Liquidity Coverage Ratio 100% >125% 180%
H1 2018 H1 2019 2018 H1 2019 2) Derived from SREP requirement for 2019 taking capital buffers into accountFurther Decline in NPL Ratio while Rating Structure Remains Stable
15
Total volume of lending by default rating category (RC)
RC 14-
RC 0-1: No default risk to excellent and
• Total lending volume of € 204.9 bn
24
5%
sustainable financial performance; • 95% of total lending volume with excellent to satisfactory
corresponding S&P Rating: AAA / AA+
creditworthiness
RC 2-7: Exceptionally high to
RC 8- RC 0-1 outstanding financial performance;
13 36% corresponding S&P Rating: AA to A-
29%
RC 8-13: Very good to satisfactory
financial performance; corresponding
RC 2-7 S&P Rating BBB+ to BB
31% RC 14-24: Sufficient and lower financial
performance; corresponding S&P
Rating < BB
Development NPL1 ratio
• As of June 30, 2019, NPL ratio had fallen further to
0.50 %
• Of “total loans and advances” of € 157.0 bn, € 0.8 bn
were classified as non-performing exposures
1.7%
0.8% 0.7%
0.5%
1) The NPL ratio is the share of non-performing exposures as of the EBA definition in
relation to loans and advances to customers/banks. Based on Finrep data
31 Dec 2016 31 Dec 2017 31 Dec 2018 30 Jun 2019High Portfolio Quality Reflected in Low Net Additions to Loan Loss
Provisions 16
Composition of loan loss provisions (in € m)
• Risk situation remains favourable, but expectation that
H1 2019 Q1 2018
loan loss provisions have bottomed out
Risk provisioning on financial
assets
-29 16 • Continued high quality of business portfolio, additions to
Provisions for off-balance lending loan loss provisions higher than in previous year but still
-5 -3
business at low level
Net risk provisioning -34 13
Breakdown by segment
in € m
• Net additions to impairments in segment Corporates &
Real Estate 12
Markets and Retail & Asset Management
Corporates & Markets -47
Retail & Asset Management -1
Development Business 0
Other 2
Consolidation / Reconciliation 0
-60 -40 -20 0 20 40Customer Business Dominates Balance Sheet Structure
17
Closely intertwined with the real economy Medium- and long-term new business volume: € 9.6 bn3
Total assets in € bn
€ 213.0 bn
Real Estate Finance
Corporates & Markets 4.0
4.8
Loans and advances
to customers
€ 118.2 bn
Loans and
advances to
customers1 55% of total Retail & Asset
€ 111.9 bn 0.8
assets Management
Loans and
advances to
affiliated
Sparkassen1 € 6.3 bn
• Increase in balance sheet total to € 213.0 bn (2018: • At € 9.6 bn, volume of new medium and long-term
€ 163.0 bn) primarily a result of the addition of KOFIBA and business considerably above previous year‘s level of
increased volume of deposits and loans from customers € 7.8 bn
• Share of loans and advances to customers at 55% of total • Includes acquisition of DVB's land transport finance
assets following significant increase in balance sheet total portfolio (approx. € 1.0 bn in new medium/long-term
(2018: 63%2) business)
1) Loans and advances in measurement category “at amortised cost” 3) New medium and long-term business excl. WIBank
2) Previous year‘s figure adjustedCapital Ratios Significantly Exceed Regulatory Capital Requirements
18
Development of capital ratios Capital requirements and components
CET1 ratio (fully-loaded)
Total capital ratio (phased-in)
CET1 ratio (phased-in)
21.8% T2 4.00%
20.5% 20.6%
19.8% 19.7% 1.10%
AT1
2.00%
T2
15.4% 1.50%
14.9% AT1
14.3% 14.6%
13.8% 3.60%
15.2% 14.9% 14.60% Comb. buffer
14.6%
13.8% CET1 Pillar 2
13.1% 1.75%
requirement 9.85%
Pillar 1 min. 4.50%
requirement
2015 2016 2017 2018 H1 2019 Capital ratio Requirement
30.06.2019 2019
• CET1 ratios at very good level • Helaba enjoys comfortable capital backing, significantly
• CRD IV / CRR transitional arrangements have no impact exceeding all currently known regulatory requirements:
on CET1 ratio since 2018 CET1 ratio of 14.6% after Q1 2019 well above
• Leverage ratio at 4.3% (phased-in) and 4.1% (fully- derived regulatory CET1 requirement of 9.85% for
loaded) 2019
• Risk-weighted assets amount to € 58.2 bn Total capital ratio of 19.7% after H1 2019 also
considerably higher than 13.35% required for 2019Helaba Subject to Binding MREL Requirement for First Time, Level
Comfortably Met 19
MREL requirement and actual level
in % of RWA
• Requirement based on data as of 31 December 2017 set
Senior preferred - thereof eligible at 8.46% in respect of TLOF1, equivalent to 24.8% in
Senior non-preferred ∑ 67.8% respect of RWA
Regulatory capital
2.7% • Actual MREL level as of 31 December 2018 of 24.4% in
MREL requirement
respect of TLOF (equivalent to 67.8% in respect of RWA)
significantly above regulatory requirements
• Helaba able to meet the required ratio almost completely
with its own funds
44.8%
• High level of subordinated eligible liabilities (senior non-
preferred) not only effectively protects higher-ranking
senior preferred class against losses, but also provides
extensive protection within senior non-preferred class
itself
24.8%
20.4%
1) MREL requirement initially communicated as a binding ratio by resolution
authorities in July 2019 based on total liabilities and own funds (TLOF)
MREL requirement Actual MREL level
(as of 31.12.2017) (as of 31.12.2018)Agenda
20
1. Helaba Business Model
2. Helaba as Sparkassen Central Bank
3. Business Development
4. Asset Quality
5. Sustainability in Helaba Group
6. FundingDiversified Credit Portfolio with Focus on Germany
21
Breakdown by customers Breakdown by region
Corporates Germany
Other
Retail customers 1%
1%
North America
WIBank 9%
26% 11%
Rest of Europe 3%
Financial Institutions 20%
3% 65%
Scandinavia 17%
24%
Real Estate 20%
Public Sector Western Europe
Total volume of lending € 204.9 bn
As of June 30th, 2019Real Estate Lending Portfolio
Business volume of € 35.3 bn 22
Breakdown by type of use Breakdown by region
Office buildings
Germany
Logistics
5% Rest of Europe 14%
Residential 22% 40% 44%
17%
GB / France
Other 12%
25%
21%
Retail North America
As of June 30th, 2019
Balanced portfolio by regions and type of useCorporate Finance Portfolio
Business volume of € 47.3 bn 23
Breakdown by product area Breakdown by region
Corporate loans Germany
Leasing Finance Other
3%
6% 5% France 4%
Structured Trade &
Export Finance 7% 6%
United Kingdom
Acquisition Finance 36%
11%
57%
Asset Backed Finance 19% North America
19%
Project Finance 16% 11%
Transport Finance Rest of Europe
As of June 30th, 2019
Broadly diversified portfolio with focus on EuropeAgenda
24
1. Helaba Business Model
2. Helaba as Sparkassen Central Bank
3. Business Development
4. Asset Quality
5. Sustainability in Helaba Group
6. FundingHelaba’s Sustainable Business Orientation
25
Helaba is committed to the ten principles of the UN Global
Compact and has established principles for responsible corporate
management in its group-wide binding sustainability guidelines
Helaba actively promotes sustainable financing and has
established binding sustainability criteria for lending in its risk
strategies. In addition, the Code of Conduct serves as a guideline
for all employees for responsible cooperation
Helaba reports extensively and transparently on its sustainability
performance using the German Sustainability Code and
publishes a non-financial statement
Link to the website: nachhaltigkeit.helaba.deHelaba‘s Sustainable Business Orientation Reflected in Sustainability
Ratings 26
• Rating score: C (Prime) • Rating score: B (Positive) • Rating score: A • Rating score 73 points
• Rating scale: from D- to A+ • Rating scale: from D to • Rating scale: from CCC to • Scale: 1 to 100 points
• Among the top 20 % in the AAA AAA • In the top third of a peer
peer group of 138 banks • Among the top 5 in the peer • Ranked in the upper group of 345 banks
• Rating score B- for partial group of 25 banks midfield in the peer group • 81 points for partial rating
rating “Social & • Rating score BBB • Top-Score for partial rating “Environment”
Governance” (Positive) for partial rating “Financial Product Safety”
“Mortgage bonds”
Development Development Development Development
B 72 73
C C B A A A 61
C-
CC
2017 2018 2019 2017 2018 2019 2017 2018 2018 2017 2018 2019
As of May 2019Agenda
27
1. Helaba Business Model
2. Helaba as Sparkassen Central Bank
3. Business Development
4. Asset Quality
5. Sustainability in Helaba Group
6. FundingFunding Strategy
Strong regional engagement as success factor and anchor of stability 28
Funding Strategy
• Continued matched funding of new business
• Expand the already strong position within the German investor base and further develop the international investor
base
• Intensive marketing of Helaba’s solid “Credit Story“ inside and outside of Germany
• Further develop the product and structuring capacity through the issuance programmes
Funding Volume Funding Programmes
Covered Unsecured Total • EUR 35 bn Euro Medium Term Note Programme
• Domestic issuance (Basisprospekt)
2018 € 4.4 bn € 8.7 bn € 13.1 bn
• EUR 10 bn Euro-CP/CD Programme
2019 • EUR 6 bn NEU CP (former French CD) Programme
€ 7.0 bn € 9.0 bn € 16.0 bn
planned • USD 5 bn USCP Programme
Broad Liquidity Access
• € 38 bn collateral pool for German covered bonds (“Pfandbriefe”)
• € 28 bn securities eligible for ECB / central bank funding
• € 20 bn retail deposits within Helaba GroupFunding
Sustainable liquidity management and high level of acceptance in the market 29
Outstanding medium and long-term funding (≥ 1 year): € 88 bn
H1 2019 2018 2017
Public Sector
in m € in m € in m € Pfandbriefe
13%
Covered securities
27,208 26,851 26,334
(“Pfandbriefe”) 18% Mortgage
Pfandbriefe
- Public sector 15,690 15,263 16,482
13%
- Mortgage backed 11,518 11,588 9,852 30% Bank Bonds
(unsecured)
Senior, unsecured bonds 23,379 22,891 20,906
27%
Borrower‘s
Borrower's notes 26,175 24,421 23,197 Notes
Miscellaneous
Miscellaneous* 11,204 10,874 12,283
Summe 87,966 85,037 82,720
* Subordinated bonds / participation rights certificates / silent deposits / earmarked funds
As of June 30th, 2019Medium- and long-term funding (≥ 1 year) in H1 2019
Diversified funding mix 30
Breakdown by Investor Breakdown by Product
Public Pfandbriefe
Retail indirect
(Sparkassen via “Depot A”)
€ 2.0 bn Mortgage Pfandbriefe
26%
€ 3.2 bn € 0.6
bn
Earmarked funds
Retail direct 62 % ( EIB, KFW, LfA
(Sparkassen via “Depot B”) 12 %
€ 2.1 bn
Borrower‘s notes and
other loans
€ 3.0 bn
Domestic & Unsecured bank
International customers bonds
Medium- and long-term funding volume in H1 2019 : € 10.9 bn
As of June 30th, 2019Helaba Ratings on a High Level
31
Insolvency hierarchy in Germany Ratings of capital markets instruments
1)
Issuer Rating L/t Issuer Default Rating 1 L/t Issuer Credit Rating
Aa3 A+ A
Aaa AAA
Covered bonds
Public sector CB Covered bonds
Deposits in protection scheme (< € 100,000)
(covered deposits pursuant to deposit guarantee scheme)
Deposits from private customers and SMEs (> € 100,000)
(eligible deposits pursuant to deposit guarantee scheme)
Insolvency / liability cascade
Senior Preferred
Aa3 AA- A
Structured Senior Preferred
Derivates Other Deposits
Notes Notes
Senior Non-Preferred
A2 A+ A-
Senior Non-Preferred Notes Senior Non-Preferred Notes
(statutory) (contractual)
Tier 2 Baa2 A
AT1
1) Joint group rating for the S-Group Hesse-Thuringia
CET1
As of August 14th, 2019Contacts
32
Dirk Mewesen
General Manager
Head of Asset & Liability Management
Tel (+49) 69 / 91 32 – 46 93
Dirk.Mewesen@helaba.de
Henning Wellmann
Head of Liability Management & Funding
Tel (+49) 69 / 91 32 – 31 42
Henning.Wellmann@helaba.de
Martin Gipp
Head of Funding
Tel (+49) 69 / 91 32 – 11 81
Martin.Gipp@helaba.de
Nadia Landmann
Debt Investor Relations / Funding
Tel (+49) 69 / 91 32 – 23 61
Nadia.Landmann@helaba.de
Landesbank Hessen-Thüringen
Neue Mainzer Strasse 52-58
60311 Frankfurt am Main, GermanyDisclaimer
33
This presentation and the information contained herein do not constitute or form part of a prospectus or
other offering document in whole or in part and should not be construed as an offer or solicitation to buy
or sell any securities or any related financial instruments and should be regarded as informative only. All
information is as of the date of publication and can change without any further notice. Whilst every effort
has been taken to ensure the accuracy of the presentation material, no guarantee is given nor liability
assumed for the information contained herein.
Helaba does not offer any advice as regards to taxation and accounting or legal matters. From the past
result, performance or achievements no conclusions as to the future results, performance or
achievements can be drawn.
The H1 2019 group financial information are based on the audited, non-attested IFRS group accounts.
Therefore, all calculations based upon these figures are preliminary and should be regarded as
informative only.
All forms of distribution of this document require the prior written approval by Helaba.
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