Deutsche Postbank AG. June 2012

Transcription

1 Deutsche Postbank AG June 2012

2 Disclaimer REPRODUCTION PROHIBITED This presentation contains forward-looking statements that relate to macro-economic developments (in particular the development of money and capital market rates), the business and the net assets, financial position and results of operations of the Deutsche Postbank Group. Forward-looking statements are not historical facts and are in some instances indicated by words such as "believe", "anticipate", "predict", "target", "plan", "estimate", "aim", "expect", "assume" and similar expressions. Forward-looking statements are based on the Company's current plans, estimates, projections and forecasts and are therefore subject to risks and uncertainties that could cause actual development or the actual results or performance to differ materially from the development, results or performance expressly or implicitly assumed in these forwardlooking statements. Readers of this presentation are expressly cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. Deutsche Postbank AG does not intend and does not undertake any obligation to revise these forward-looking statements. Due to rounding, numbers presented throughout this document may not add up precisely to the totals we provide and percentages may not precisely reflect the absolute figures. Page 2

3 Agenda Postbank at a glance Key developments at Postbank Funding Appendix Page 3

4 Postbank - Germany s leading retail bank Market leader in German retail banking ~14 million customers 74 bn of retail mortgages ~5 million checking accounts Cost leader in Transaction Banking 8.0 billion transactions 98% paperless low unit costs and highest efficiency Profitable Corporate Banking 30,000 domestic corporate customers Core bank to German SME s Selective, low risk growth Strong distribution platform 1,104 own branches access to several thousand postal outlets Several thousand mobile sales agents Page 4

5 Postbank s history at a glance 1909 Introduction of postal money transfer system (Postscheckdienst) 1939 Start of postal savings 1990 Unwinding into stand-alone company Postbank (Postal reform I) 1995 Full banking licence, change into stock corporation (Postal reform II) % subsidiary of Deutsche Post AG 2000 Integration of DSL Bank, start of brokerage business 2001 Founding of Postbank Leasing GmbH and of PB Factoring GmbH Acquisition of PB Capital Corporation in New York (Corporate banking) 2003 Start of SAP for Banking / founding of Postbank Vermögensberatung AG (mobile sales) 2004 Initial Public Offering (IPO) Start of Transaction Banking Founding of PB Firmenkunden AG (Corporate Banking) 2005 Acquisition of Deutsche Postbank London Branch 2006 Acquisiton of BHW Holding AG and 855 branches of Deutsche Post AG Founding of Postbank Finanzberatung AG and of Postbank Filialvertrieb AG 2007 Pfandbrief license / new branch concept 2008 Deutsche Bank AG acquires stake in Postbank; Implementation in 2009 Takeover of further branches of Deutsche Post AG Deutsche Bank holds 29.88% of Deutsche Postbank AG 2012 Deutsche Bank increases its stake to 93.7% Deutsche Postbank AG (controlled entity) and DB Finanz Holding GmbH are preparing for a control and profit and loss transfer agreement Page 5

6 Postbank`s ownership structure as of March 2012 freefloat 6.1% 93.9% Deutsche Bank AG 10.3% 13.2% 35.3% Deutsche Bank AG increased its stake to 93.9% and is now owner of m Postbank-shares 18.8% Page 6

7 The role of Deutsche Postbank within Deutsche Bank Group Quelle: Präsentation Rainer Neske, Barclays Global Financial Services Conference 2011 Page 7

8 Advantages of a strong Retail Banking (1) High liquidity (2) Stable earnings (3) Low costs (4) Solid asset quality Page 8

9 Retail Banking: Postbank s multi channel distribution network Branch distribution > 1,100 own branches (~1 Mio customer contacts per day) > 4,500 partner agencies of Deutsche Post Area-wide supply of cash ~ 9,000 ATMs within cash group Cash supply in ~ 1,200 Shell gas stations and ~ 180 OBI Hardware stores Mobile distribution Largest German bank owned mobile distribution network Direct distribution Call Center 7 x 24 hours Online-Banking and Online-Brokerage Third party distribution DSL and BHW mortgage distribution partners Page 9

10 Agenda Postbank at a glance Key developments at Postbank Funding Appendix Page 10

11 Key developments 2011 Financials Strong improvement of clean profit before tax (PbT): 2011: 984m (+ 113m yoy) One-off items dilute sound performance of customer business: Impairment of Greek sovereign bonds ( -632m, thereof in Q4 2011: -105m) Reported PbT 2011: 78m (Q4 2011: 66m), PaT 2011: 111m (Q4 2011: 105m) Solid growth of net interest income and improvement of risk provisions Strong progress in reduction of financial assets (-21% to 46.5bn) and SCP (-46% to 2.0bn) Material improvement of Tier 1 Ratio: +2.7%-pts since YE 2010 to 10.8% Management s Agenda Further de-risking initiatives: reduction of investment securities and SCP Strong cost containment stays in focus of all initiatives Value oriented growth in major product fields Integration into Deutsche Bank PBC Page 11

12 Key developments Retail Banking segment Profit before tax ( m) % YE 10 YE 11 Key P&L items ( m) (1) YE 2010 YE 2011 Net interest income 2,341 2,448 Trading income 15-9 Net commission income 1,080 1,041 Total income 3,431 3,479 Admin expenses -2,178-2,259 Risk provisions Profit before tax Comments PBT growth of 3.5 % due primarily to rise in net interest income by almost 4.6% y-o-y Net fee and commission income declined by 3.6% to 1,041 million, partly attributable to the reduction in the minimum limit for incoming payments for our free checking account Risk provisions declined significantly by 16.9% to 295 million due to continuing positive economic trend in Germany and good labor market situation (1) Figures restated Page 12

13 PBT 2011: good underlying performance Overview of selected non-recurring items FY 2011 ( m) % Reported PBT FY 2011 Trading income Income financial investments Admin. expenses Clean PBT FY 2011 Clean PBT FY 2010 Improvement of clean PbT in FY 2011 vs. FY 2010 (+13%) One-off burdens are attributable to Greek sovereign bonds ( -632m), SCP ( -19m), losses on sales of other financial assets ( -73m), staff related provisions ( -142m), alignment of accounting policy for accruals for partial retirements ( -77m) and a write-down on own real estate ( -18m) Extraordinary gain due to divestment of our Indian subsidiary (Q1: +55m) Bank levy ( -23m) not shown as non-recurring item Page 13

14 Net interest income (NII): strong performance driven by customer business NII year-on-year ( m) Comments 664 2,405 FY ,731 FY ,910 FY 2011 NII driver for revenue growth in 2011 (+6,6 %) Strong performance of NII in retail banking business due to positive development in loan and deposit business Low interest rate environment NII quarter-on-quarter ( m) remains challenging for deposit rich banks Reduction of financial assets in line with communicated strategy results in lower related NII Q Q Q Q Q Page 14

15 Commission income: investment in free checking account business Net fee and commission income y-o-y( m) Net fee and commission income q-o-q ( m) 1,316 1, Core Banking Fees Transaction Banking Non-banking Fees (1) 50% 10% 40% FY 2010 FY 2011 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Core banking fees down 40m in 2011 mainly due to positive one-off items in 2010 and reduced hurdle rate for free checking accounts Decline of total commission income of 4.9 % to 1,252m (1) Fees from postal services and third party products sold in branches Page 15

16 TI and IIS: dilution from Greek government debt crisis Trading income and income from investment securities ( m) Comments Trading income Income from investment securities 63 Trading income (TI) in SCP +4m Burdens related to SCP ( m) -105 Q4 10 Q1 11 Q2 11 Q3 11 Q Income from investment securities (IIS) in One-off gain attributable to divestment of Deutsche Postbank Home Finance Ltd. ( 55m) in Q1 - Impairment of Greek sovereign bonds -632m - SCP -23m impairment and realizations bonds and mutual funds and losses on other risk positions m FY 10 FY 11 Q1 11 Q2 11 Q3 11 Q4 11 Page 16

17 Admin expenses: increase due to several one-off items 2,864 Admin expenses y-o-y ( m) 2,934 3,204 1,458 1,406 1,492 1,442 1,580 1,624 FY 2009 FY 2010 FY 2011 Personnel costs Other expenses Admin expenses q-o-q ( m) Non recurring items Comments Significant non recurring items of -237m in FY 2011 dilute overall good underlying cost development: - staff related provisions ( 142m) - alignment of accounting policy for accruals for partial retirements ( 77m) - write-down on own real estate ( 18m) 23m for the bank levy in 2011 Acquisition of 277 branches in 2010 lead to structural increase of cost base by 54m in 2011 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Page 17

18 Risk provisions: net addition ratio significantly below 2010 level Risk provisions ( m) Comments NAR for total loan book 35bps; significantly below FY (50bps) and the European banks sector FY 10 FY 11 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Credit quality supported by good macroeconomic Net addition ratio (NAR) (1) (bps) development in Germany 200 Postbank European banks sector bps e : 35bps FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 (1) Net addition ratio (llps/total customer loans); sector data: UBS Research / Q Page 18

19 Successful derisking in 2011 Development of investment portfolio (in bn) Development of SCP (in bn) -21% % FY 2010 FY 2011 FY 2010 FY 2011 Structured credit portfolio (SCP) reduction of 1.7bn in 2011, thereof 0.2bn in Q Financial assets decreased by 43% since 9M 2008 which goes along with a reduction by 21% in 2011 => On track to achieve the envisaged reduction of up to 45% by the end of 2013 already in early 2012 Total assets at 192bn, down 23bn vs Page 19

20 Tier 1 ratio: strong improvement in 2011 Basel II Tier 1 ratio (%) Comments Tier 1 ratio improved by 2.7%-pts in 2011 Positive effects from derisking of portfolio (SCP, financial assets, CRE) YE 2009 YE 2010 YE 2011 Risk-weighted assets and Tier 1 ratio YE 2009 YE 2010 YE 2011 Target of >9.5% Tier 1 ratio for YE 2012 already achieved Further initiatives to strengthen capitalization on track Credit and counterparty risk ( m) 57,738 58,100 51,038 Market risk positions ( m) 9,725 3,863 2,462 Operational risk ( m) 6,538 4,400 3,550 Tier 1 ratio (%) Page 20

21 Agenda Postbank at a glance Key developments at Postbank Funding Appendix Page 21

22 Funding: Liquidity rich - strong deposit base Customer loans ( bn) Customer deposits ( bn) Corporate Other Overdrafts Consumer Home finance Corporate Sight Home savings Savings YE 2010 YE 2011 YE 2010 YE 2011 Because regulatory requirements impose need for long refinancing (NSFR) Mortgage business as an attractive pre-requisite for future Pfandbrief issues Page 22

23 Funding Broadening of our diversified funding mix Strong deposit base due to high volume in savings, home savings and funds on checking accounts Loan Deposit Ratio in the customer business below 100 % after high liability surpluses in previous years High share of owner-occupied residential home finance is ideal to issue Mortgage Pfandbriefe for long term funding by launching a Debt Issuance Programme Debt Issuance Programme (DIP) since December 2007 To optimize the funding at the same time Postbank requested a Pfandbrief licence Inaugural Jumbo Mortgage Pfandbrief issued in January 2008 Follow up Jumbo Mortgage Pfandbrief in May 2008 and February 2009 Inaugural Public Sector Pfandbrief in July 2009; tapped in August 2009 First 10 year Jumbo Mortgage Pfandbrief since summer 2009 placed in March 2010 In February 2011 Postbank launched a successful 10 year Jumbo Mortgage Pfandbrief Privat placements issued frequently Page 23

24 Postbank Pfandbriefe / Covered Bonds Maturity Profile Volume (in m) as of March 31, , Total: ~ 23bn 3, , , , , > Outstanding issues amounted to ~ 31bn, more than 70 percent are covered bonds Achieve a balanced 1.40proportion between 2.00small taylor made products and benchmark issues Emphasis on Mortgage Pfandbrief as strategic key funding instrument In 2011 the issued volume was reduced due to Postbank s comfortable liquidity situation Page 24

25 Postbank Jumbo Pfandbriefe Maturity Profile Outstanding Issues Comments in m 1,500 Total: 7.00 bn Aaa/AAA/AAA for all Public and Mortgage Pfandbriefe 1,000 After receiving the Pfandbrief licence the first Jumbo Pfandbrief launched in January Today strategic benchmark issues amounts to 7 bn 0 due due due 01/ / /2014 Mortgage Pfandbriefe due due due 07/ / /2021 Public Sector Pfandbriefe Strong Focus on Mortgage Pfandbriefe in line with our business model Page 25

26 Postbank Mortgage Collateral Pool: Distribution by property type Residential mortgage loans (% of numbers of loans) Comments 3.9 Total: 92,969 / 7.82 bn (1) Total pool size of 8.56bn with 7.82bn of residential mortgage loans across Germany only Almost 94% of the financed properties are owner-occupied residential homes owner-occupied houses owner-occupied apartments Rented houses Rented apartments Substitute collateral of 0.73 bn in highly liquid State bonds No exposure in Portuguese, Italian, Irish, Greek or Spanish Bonds (1) As of March 31, 2012 Page 26

27 Postbank Mortgage Collateral Pool: Distribution by region Residential Mortgage Loans (in %) Comments Total: 92,969 / 7.82 bn. (1) Thuringia Mecklenburg Western Pomerania Hamburg Saxony-Anhalt Rhineland Palatinate Saxony Berlin Brandenburg Bremen Saarland North-Rhine Westphalia Bavaria The collateral pool purely consists of German residential assets (despite of substitute collateral) It is broadly diversified throughout Germany, almost in line with the general distribution of mortgage loans in Germany Granular Cover Pool: Average Mortgage loan size EUR 84,128 Schleswig-Holstein Over 99% of the loans are smaller than 250 tsd Euro Hesse Lower Saxony Baden - Wuerttemberg Loans valuate already longer than 58 months (weighted average) (1) As of March 31, 2012 Page 27

28 Postbank Mortgage Collateral Pool: Risk management features Value of Mortgage Pool as of March 31, 2012 Comments Mortgage Assets Mortgage Pfandbriefe in circulation Results from stress tests (dynamic method) show a very comfortable overcollateralization (2% required by law) Overcollateralisation (in bn) (in bn) (in bn) (in %) Nominal (Pfandbrief Act) NPV (Net present value) bp dynamic method./. 100 bp dynamic method No non-performing loans in the pool; they are immediately removed once they occur Page 28

29 Postbank Public Sector Collateral Pool Structure of Public Sector Pool (1) Comments Total: ~ 2.7bn KfW guaranteed residential mortgage loans ~ 15.4 % ~ 84.6 % Public Sector Bonds Pool rating of AAA by Standard & Poor's Aaa by Moody's AAA by Fitch Ratings There are two components in the pool: - KfW guaranteed residential mortgages - Public Sector Bonds Since the mortgage portfolio is containing exclusively seasoned residential mortgages in small sizes, Postbank opted for the KfW guarantee as the most cost efficient way to achieve cover pool eligibility for the portfolio 0% risk weighted pool (1) As March 31, 2012 Page 29

30 Postbank Public Sector Collateral Pool Total ~ 2.7bn Structure of Public Sector Pool (1) Public guaranteed residential mortgage loans 15% German regional Austria authorities 1% 34% Belgien 9% EU 9% German institutions 32% Comments The portfolio of public guaranteed residential mortgage loans: Purely German residential mortgages Geographically diversified throughout Germany High granularity ø loan size of 52,074 Very low (WA) LTV of < 41% (WA) seasoning of ø15 years (WA) maturity of ø 3.6 years Results in triple protection for the investor: Via Postbank directly Via the collateral pool Via KfW guarantee on residential mortgages No exposure in Portuguese, Italian, Irish, Greek or Spanish bonds (1) As of March 31, 2012 Page 30

31 Postbank Public Sector Collateral Pool: Risk management features Value of Public Sector Pool as of March 31, 2012 Comments Nominal (German Mortgage Bank Act) NPV (Net present value) bp dynamic method./. 100 bp dynamic method Public Sector Assets Public Sector Pfandbriefe in circulation Results from stress tests (dynamic method) show a very comfortable overcollateralization (2% required by law) Overcollateralisation (in bn) (in bn) (in bn) (in %) Page 31

32 Agenda Postbank at a glance Key developments at Postbank Funding Appendix Page 32

33 Selected non recurring items FY 2011 ( m) Q1 Q2 Q3 Q4 FY11 Total Trading income SCP Income from investments SCP Other bonds and mutual funds Greek sovereign bonds Divestment Indian subsidiary Admin. expenses Staff related provisions Accruals for partial retirement Write down of fixed assets Page 33

34 Balance sheet ( m) 12/31/09 12/31/10 12/31/11 Assets Loans and advances to other banks 14,467 12,140 20,322 Loans and advances to customers 111, , ,740 Allowances for losses on loans and advances -1,641-1,764-1,826 Trading assets 20,471 24,150 6,892 Investment securities 72,359 58,980 46,480 Other items (1) 9,910 9,395 9,374 Total assets 226, , ,982 Shareholders' equity and liabilities Deposits from other banks 39,318 22,419 20,024 Due to customers 131, , ,126 Securitised liabilities 16,722 12,860 12,727 Trading liabilities 22,434 26,174 8,591 Provisions 2,148 2,287 2,557 Other items (2) 8,478 8,841 8,248 Shareholders' equity 5,251 5,627 5,709 Total shareholders' equity and liabilities 226, , ,982 (1) Cash reserve, Hedging derivatives, Property and equipment, Intangible assets, Deferred tax assets, Other assets (2) Hedging derivatives, Other liabilities, Subordinated debt Page 34

35 P&L: quarterly overview ( m) Group Q4 11 Group Q3 11 Group Q2 11 Group Q1 11 Group Q4 10 Group Q3 10 Group Q2 10 Group Q1 10 Net interest income Net trading income Net income from investment securities Net fee and commission income Total income 1, , Administrative expenses Allowances for losses on loans and advances Other income / expenses Profit before Tax Net profit Cost / income ratio 83.1% 105.9% 88.1% 78.9% 85.5% 77.9% 73.6% 71,9% Return on equity before taxes 4,6 % -9.1% 0.1% 9.9% 1.3% 5.1% 6.8% 9,8% Page 35

36 P&L: segment reporting ( m) RB CB TB FM CC / Cons Group Net interest income FE , ,910 Net interest income FE 2010 (1) 2, ,731 Trading income FE Trading income FE 2010 (1) Income from investments FE Income from investments FE 2010 (1) Net fee income FE , ,252 Net fee income FE 2010 (1) 1, ,316 Total revenues FE , ,672 Total revenues FE 2010 (1) 3, ,805 Admin expenses FE , ,204 Admin expenses FE 2010 (1) -2, ,934 Loan loss provisions FE Loan loss provisions FE 2010 (1) Other income / expenses FE Other income / expenses FE 2010 (1) Profit before Tax FE Profit before Tax FE 2010 (1) (1) Figures restated Page 36

37 Commercial real estate: reduction of loan volume and net addition ratio Net addition ratio (1) (bps) 2008 restated Comments Annualised net addition ratio (NAR) for CRE at 42 bps Total CRE loan volume declined by 5.7% since YE 2010 due to selective new business activities Total portfolio PB London (UK) & PB Capital (US) CRE loan volume ( bn) CRE loan volume by region 2011 (%) Western Europe 21 Other 9 Germany 34 YE 2009 YE 2010 YE 2011 (1) Annualized loan loss charges / average loan exposure North America 20 UK 16 Page 37

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39 Contact Postbank: Credit & Capital Markets Christian Herter Abteilungsleiter Credit & Capital Markets Tel. +49-(0)228/ Sabine Bosch Tel. +49-(0)228/ Georg Briele Tel. +49-(0)228/ Claudia Burgner Tel. +49-(0)228/ Marc Heimeroth Tel. +49-(0)228/ Richard von Heusinger Tel. +49-(0)228/ Franziska Berndt Tel. +49-(0)228/ Page 39