Investor Presentation - IFRS Group Result as at 30 June 2019 Hamburg, 29 August 2019 - Hamburg Commercial Bank
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Investor Presentation IFRS Group Result as at 30 June 2019 Hamburg, 29 August 2019
Highlights H1 2019
New brand/new name successfully launched and established
Management Board internationally strengthened by Ian Banwell (Chief Operating
Officer) and Christopher Brody (Chief Investment Officer)
Visible progress of transformation programme:
• Go-To-Market – outside HCOB’s core business also provider of specialized
financing: e.g. leasing, factoring and vintage ships financing
• Portfolio Management – overall portfolio improvement by strong new business
at significantly improved risk return profile, new business RoE of 14.7%1
• Liability Optimization – reduction in funding costs, successful issue of Hamburg
Commercial Bank’s first EUR 500mn 3 year Senior Preferred Benchmark
• Operating Efficiency – reduction in operating costs and successful launch of
business and IT transformation process
• Organizational Vitality – agreement with social partners on socially acceptable
staff reductions as milestone for achieving cost targets
Moody’s Credit Opinion as at July 2019: rating confirmed - strong capitalisation,
reduced organisational complexity and improved asset quality
Good basis for H2 2019: 6M 2019 IFRS Group Result with net income before
taxes of EUR 96mn above expectations and a strong CET1 ratio of 17.0%
1 RoE before taxes in new business in H1 2019
Investor Presentation - IFRS Group Result H1 2019
2 29 August 2019
Agenda 1. Hamburg Commercial Bank at a glance 2. Financial key figures for H1 2019 3. Outlook for full year 2019 4. Appendix Investor Presentation - IFRS Group Result H1 2019 3 29 August 2019
Hamburg Commercial Bank – We are …
… now a private commercial bank. True to Hanseatic tradition, we
make clear promises and keep them:
For us it’s only one direction: • Reliable
Clearly ahead. • Client-centric
We act towards the future. • Sincere
Real Estate
Shipping
Corporate Clients
Treasury & Markets
Investor Presentation - IFRS Group Result H1 2019
4 29 August 2019
Management Board – High profile with international background
Stefan Ermisch Dr Nicolas Blanchard
CEO CCO
More than 16 years experience in Previously, he was personally liable
board positions at private partner from 2012 – 2017 at
commercial banks and in the public Bankhaus Lampe KG and
sector in Germany and abroad, responsible for retail and corporate
including BayernLB, HVB and customer business and also Head
BA-CA of Capital markets
Ulrik Lackschewitz Christopher Brody
CRO and Deputy CEO CIO
Ulrik Lackschewitz was Group 2012 - 2019 President and Chief
Head of Financial and Risk Control Investment Officer of a US family
of NordLB (2011) and reported office; 2008 - 2011 Chief
directly to the Management Board; Investment Officer of BAWAG
prior to this, he held the position of P.S.K.; 2001 - 2007 Managing
COO of Macquarie Securities Director Cerberus
Ian Banwell Oliver Gatzke
COO CFO/CTO
Most recently Senior Managing Former partner of KPMG AG
Director at Cerberus; 1998 - 2007 Wirtschaftsprüfungsgesellschaft
Bank of America: Chief Investment (since 2007), focusing on
Officer, Chairman of the Asset and transaction and restructuring advice
Liability Committee and member of for financial service institutions
the Management Committee
Investor Presentation - IFRS Group Result H1 2019
5 29 August 2019
Ratings based on improved Hamburg Commercial Bank –
financial strength rating overview
Moody’s1 S&P1
Moody‘s confirmed HCOB’s ratings (9 July 2019) Issuer rating
“HCOB's ba2 BCA reflects the bank's strong capitalisation, which we expect to Counterparty Rating Baa2, stable BBB+, stable
underpin its financial profile throughout the bank's transition process out of the
public-sector Sparkassen-Finanzgruppe (S-Finanzgruppe, Aa2 stable, a2). At the
Deposit Rating Baa2, stable –
same time, HCOB benefits from reduced organisational complexity and an
improved asset quality, following the sale of underperforming legacy exposures to a
separate special-purpose vehicle and the early termination of the prior owners' Issuer Credit Rating (long-term) Baa2, stable BBB, stable
asset guarantee as part of the bank's privatisation. The ba2 BCA also incorporates
our view that diversifying funding sources and extending bond maturity profiles will Short-term Debt P-2, stable A-2, stable
be key medium-term challenges for the bank's financial profile.“
Stand-alone Rating (financial strength) ba2, stable bbb-, stable
Instrument ratings (secured issuances)
Public Sector Covered Bonds Aa2, stable –
New rating from S&P after closing (6 December 2018) Mortgage Covered Bonds Aa2, stable –
"Following the successful privatisation, HSH Nordbank can now execute its Ship Covered Bonds A3, stable –
multiyear transformation to a more sustainable and efficient mid-size corporate
lender, supported by a clean balance sheet and large liquidity buffer. HSH
Nordbank's sizable buffer of subordinated debt would likely help to protect senior Instrument ratings (unsecured issuances)
unsecured creditors if the bank failed and was subject to a bail-in resolution action.
The stable outlook reflects our view that the privatisation and ensuing “Preferred” Senior Unsecured Debt Baa2, stable –
transformation enables HSH Nordbank's management to build on its solid
capitalization and current good asset quality, and that results will materialise only “Non-Preferred” Senior Unsecured Debt Baa3, stable –
over the coming two to three years.”
Subordinated Debt (Tier 2) Ba3, stable –
1 See also latest publications by the rating agencies on Hamburg Commercial Bank AG’s website: https://www.hcob-bank.de/en/investoren/rating/rating/
Investor Presentation - IFRS Group Result H1 2019
6 29 August 2019
A clear vision for fundamental transformation with five key
initiatives
Initiatives to improve profitability and RoE
Profitable products and efficient distribution
Offering credit solutions & value-added cross-selling to boost our clients’ success
Go-to-market Portfolio management Liability optimisation Operating efficiency Organisational vitality
Profitable and risk-oriented Stringent focus on Diversification and Systematic cost Optimisation of the
growth strategies profitability and earnings optimisation of the funding management and efficiency organisational structure
structure gains
• Continue proven core • Disciplined pricing • Diversified, competitive • Actively using processes • Streamlined
business /clearly defined • Capital-efficient structures refinancing instead of differentiating management structures,
products • Cross-selling with low • Deposit mix wholesale vs. • Facilitate processes in the clearly aligned with the
• Tapping into new sources capital investment retail desired quality at business model
of income: leasing, • Focus on further rating acceptable costs, IT • Performance-oriented
• Ongoing RWA optimisation,
factoring, vintage ships, e.g. OtD improvement outsourcing e.g. corporate culture
diversified lending
Client-focused business model...
Disciplined use of capital and operational efficiency while satisfying client needs
Investor Presentation - IFRS Group Result H1 2019
7 29 August 2019Target for transformation – A sustainably profitable bank
6M 2019 Objectives 2022
Capital … already above target, incl.
17.0% ≥16% Basel 4 impacts
CET1 ratio
Asset quality … target achieved by a clean
1.7% 140%
LCR
Rating1 … first rating improvement achieved
Baa2/BBB Baa1/BBB+ after privatisation following a much
Moody’s/S&P
improved financial profile
I Issuer credit rating
Investor Presentation - IFRS Group Result H1 2019
8 29 August 2019Agenda 1. Hamburg Commercial Bank at a glance 2. Financial key figures for H1 2019 3. Outlook for full year 2019 4. Appendix Investor Presentation - IFRS Group Result H1 2019 9 29 August 2019
Focused portfolio management leads to noticeably rising
margins on new business, new business RoE of 14.7%1
Gross new business Corporate Clients Real Estate Clients Shipping
EUR 3.6bn (PY: EUR 3.8bn); in % / in EUR bn in bn EUR
2.3 2.3
Shipping 14%
(0.5) 1.3
22%
Corporate Clients 0.8
(0.8) 64% 0.5
Real Estate Clients 0.3
(2.3)
6M 2018 6M 2019 6M 2018 6M 2019 6M 2018 6M 2019
Total income2 Loan loss provisions Net income b. taxes Total assets
in EUR mn in EUR mn in EUR mn in EUR bn
348 55
50
131 96
226
25
6
6M 2018 6M 2019 6M 2018 6M 2019 6M 2018 6M 2019 2018 6M 2019
1 RoE before taxes in new business in H1 2019; 2 Previous year‘s figure includes special effects from the portfolio transaction realisation gains from the sale of securities
Investor Presentation - IFRS Group Result H1 2019
10 29 August 2019Satisfactory overall business development in market segments1
Corporate Clients Real Estate Clients
Net income b. taxes • Net income before taxes of EUR -12mn, Net income b. taxes • Main reasons for a net income before
in EUR mn in EUR mn
due to decreased total income and risk taxes of EUR 56mn (PY: EUR 38mn)
provisioning of EUR -22mn (PY: EUR were increased net interest and net
15 56
-4mn) commission income as well as a
• Decline in total income reflects a highly 38 positive other operating result (partial
competitive environment as well as a release of a provision for a litigation
profit oriented business approach risk)
- 12
• Reduction of administrative expenses • New loan loss provisions due to Brexit
6M 6M
6M 6M had a partially compensatory effect 2018 2019 risks had an opposite effect
2018 2019 • Negative valuation effects of customer
derivatives burdened noticeably
Shipping Treasury & Markets
Net income b. taxes • Net income before taxes of EUR 111mn Net income b. taxes • Net income before taxes of EUR
in EUR mn in EUR mn -20mn in line with expectations
(PY: EUR 138 mn)
• Solid operating result in line with • Significant decline in the result
138 136
111 expectations compared to the prior-year period
• Reversals of loan loss provisions (EUR 136mn) due to extraordinary
contributed noticeably to the result, effects from sales of securities in
although to a lesser extent than in the 2018
6M 6M prior-year period - 20
2018 2019 6M 6M
2018 2019
1 Cost allocation has been changed – for details please see as per financial report as at 30.06.2019
Investor Presentation - IFRS Group Result H1 2019
11 29 August 2019Operational development on track, previous year benefited form
privatisation
in EUR mn net commission income Net interest income
net interest income
316 • Operating net interest income developed largely according to
23 plan
255
• Characterised by almost constant volume of new business and
28
expectedly reduced funding costs
• Noticeable decline in net interest income essentially from
293 positive valuation effects in 6M 2018
227
Net commission income
• Net commission income slightly below plan due to volume-
related factors
6M 2018 6M 2019
• Compared with 6M 2018, the lack of premium expenses for a
securitisation transaction that was terminated in 2018 had a
Client loans
positive effect
in EUR mn
32,791 32,260
31.12.2018 6M 2019
Investor Presentation - IFRS Group Result H1 2019
12 29 August 2019Reduction in administrative expenses result of systematic
implementation of the measures in the transformation process
in EUR mn CIR (%) Administrative expenses
personnel expenses • Implementation of operational cost measures have
operating expenses1 been achieved as planned, administrative expenses
reduced by 8%
57
62 • Personnel measures resulting from the successful
conclusion of negotiations with social partners will
gradually take considerable pressure off personnel
-207
-190 expenses from the second half of 2019 onwards
99
105 • Personnel expenses EUR -105mn (prior-year period:
EUR -99mn)
108 85
• Operating expenses declined by 16% to EUR -80mn
6M 2018 6M 2019 (prior-year period: EUR -95mn)
1incl. depreciations
• Depreciation of property and of intangible assets came
to EUR -5mn; prior-year period: EUR -13mn, thereof
one-off effect (EUR -8mn) impairment loss on aircrafts
Full-time equivalents
# FTE • Restructuring expenses completely recognised
already in 2018
• Cost reduction program to be stringently implemented
-5% until a CIR of a maximum of 40% has been achieved
-42% by 2022
1,716 1,630 ~950
(31.12.2018) (30.06.2019) objective
2022
Investor Presentation - IFRS Group Result H1 2019
13 29 August 2019Loan loss provisions – Conservative approach, slight
release mainly due to successful restructuring in Shipping
Total loan loss provisions1 Loan loss provisions in H1 2019 by business unit
in EUR mn in EUR mn
87
131
1
25 -22
-41
Shipping Real Estate Corporate Other
6M 2018 6M 2019 Clients Clients
• Loan loss provisions of EUR 25mn (PY: EUR 131mn) as a result of releases of SLLP due to successful restructuring measures in the
Shipping segment
• New GLLP for IFRS 9 step 2 had an compensatory effect, among others due to macroeconomic risks. These were mainly related to
the Real Estate segment as to uncertainties arising from the Brexit
• The previous year was effected by releases of LLP as well as compensatory effects from the second loss guarantee
1 Following
the termination of the guarantee in November 2018, loan loss provisions are free of balance sheet effects resulting from the guarantee; taking into account the effects from the guarantee, loan loss provisions amounted to
EUR 81mn in the same period of the previous year (6M 2018)
Investor Presentation - IFRS Group Result H1 2019
14 29 August 2019CET1 ratio at a solid level
• The CET1 ratio fell to 17.0% as against CET1 capital (in EUR bn) and capital ratios (%) Overall capital ratio
31 December 2018 (18.4%), but is still Tier 1 capital ratio
well above the internal ambition level of CET1 capital ratio
16%
• This was due, in particular, to a net 23.3
21.5
increase in RWA of around EUR 1.5bn, 18.4
17.0
which is mainly attributable to 18.4
17.0
necessary adjustments to the model
parameters for credit risks, as well as
burdens on the CET1 capital resulting
from the revaluation of pension
RWA & CET1 capital
obligations
in EUR bn
• As such the tier 1 capital ratio and the RWA
overall capital ratio fell in line with the 23.6 CET1 capital
22.1
Common Equity Tier 1 ratio compared
with 31 December 2018
4.1 4.0
31.12.2018 H1 2019
Investor Presentation - IFRS Group Result H1 2019
15 29 August 2019HCOB loss absorbing capital with sizeable buffer to Senior
Unsecured Preferred
Equity
EUR 4,365mn
Order of bail-in sequence
Hybrid instruments
Buffer to potential EUR 713mn
Senior Unsecured losses:
• EUR 10,174mn
• 20% of total liabilities1
• 43% of RWA3 Subordinated liabilities2 28% of total liabilities1
EUR 1,069mn 60% of RWA3
Senior Unsecured – non-preferred2
EUR 4,027mn
Senior Unsecured – preferred2
EUR 3,868mn
Business model with conservative risk standards
average LTV: 67.7% real estate and 65.3% shipping (30.06.2019)
All data IFRS as at 30.06.2019; 1 Total liabilities of EUR 50.199mn; 2 Maturity of > 1 year; 3 RWA of EUR 23.6bn
Investor Presentation - IFRS Group Result H1 2019
16 29 August 2019A conservatively managed balance sheet
CET 1 well above regulatory
Tier 1 capital ratio 17.0%
requirement of 10.5%
Strong value, well above
Leverage Ratio 8.1%
regulatory minimum of 3.0%
Clear above NSFR
Net stable funding ratio 109%1
requirement
Significantly above LCR
Liquidity coverage ratio 184%
requirement of 100%
Conservative market risk
Value-at-Risk2 EUR 0.3bn
management
All data IFRS as at 30.06.2019; 1 Preliminary; 2 1 year, 99.9%
Investor Presentation - IFRS Group Result H1 2019
17 29 August 2019Good portfolio quality, NPE ratio reduced to 1.7%
Total Portfolio Portfolio by rating category Total NPE by client division
in EUR bn, EaD in EUR mn, EaD
∑ EUR 51.1bn EaD ∑ 36.4 ∑ 13.4 ∑ 0.9 NPE ratio 1.7%
(31.12.2018: 2.0%)
Thereof EUR 18.5bn
Treasury & Markets and others
Corporate
22.1 104
32.6 Clients
5.2
18%
Shipping Real
(16%) 27
Estate
14.3
14.5 10.7 615 Shipping
Real Estate 38%
(44%)
127 Other
Corporate 6.3
Clients 1.6 1.1 0.9
(19%)
Energy & 6.6 873 Total NPE1
Infrastructure 44% 0-1 2-5 6-9 10-12 13-15 16-18
(20%)
Investment Non-investment grade Default
30.06.2019 grade categories
63% coverage ratio (AC)
• Bank Portfolio of EUR 51.1bn EaD, of which EUR 36.4bn (71%) in investment grade
• NPE volume1 of EUR 873mn corresponds to an NPE ratio of 1.7%, down from 2.0% at the end of 2018
• NPE Coverage ratio AC of 63% at a solid level, total risk coverage incl. collaterals of 107%
Rounding differences possible; 1 Default rating 16 - 18
Investor Presentation - IFRS Group Result H1 2019
18 29 August 2019Agenda 1. Hamburg Commercial Bank at a glance 2. Financial key figures for H1 2019 3. Outlook for full year 2019 4. Appendix Investor Presentation - IFRS Group Result H1 2019 19 29 August 2019
Outlook for 2019 – Slightly positive IFRS net income before
taxes expected for 2019
• The second half of the 2019 financial year will also be characterized by the focused and systematic
implementation of the transformation programme. This means that all packages of measures will
be vigorously pursued in order to make the Bank's business model viable and flexible in the long
run, thus laying the foundation for its success in a dynamic and competitive environment and
ultimately ensuring a seamless transition to the deposit guarantee scheme of private banks at the
beginning of 2022.
• On the basis of the generally satisfactory performance of the IFRS Group in the first half of 2019 and given that
the transformation process has been running to plan overall to date, the Bank is confident, from today's
perspective, that it will be able to achieve the targets set for 2019 as a whole. The second half of the 2019
financial year will be characterised by the further implementation of the operating earnings and cost measures. In
order to ensure the successful implementation of the transformation programme, the individual measures taken
will be continuously reviewed and adjusted if necessary.
• Accordingly, the Bank still expects to see a slightly positive IFRS net income before taxes in 2019. This net
income forecast is subject to any unforeseeable effects resulting from the implementation of the
restructuring/transformation process and/or unforeseeable geopolitical influences.
The outlook and the assumption of the Bank’s survival for accounting and valuation purposes are based on the assumptions set out in the Annual Report as at 31 December 2018.
Investor Presentation - IFRS Group Result H1 2019
20 29 August 2019Agenda 1. Hamburg Commercial Bank at a glance 2. Financial key figures for H1 2019 3. Outlook for full year 2019 4. Appendix Investor Presentation - IFRS Group Result H1 2019 21 29 August 2019
Net assets and financial position
Material items on the statement of financial
Change in Total assets further reduced as planned
positions 31.12.2018 6M 2019
%
(in EUR mn, IFRS) • Total assets decreased by 9% to EUR 50,199mn
Cash reserve 5,362 870 -84 (PY: EUR 55,121mn)
Loans and advances to banks 3,167 3,046 -4 • Decrease in cash reserve to EUR 870mn (EUR
Loans and advances to customers 32,791 32,260 -2 5,362mn as at 31.12.2018) was key driver for the
reduction of total assets on the assets side; this
Loan loss provisions -831 -726 -13
was the result of an active liquidity management to
Trading assets 3,094 4,079 32 reduce consistently liquidity reserves built up
Financial investments 10,100 9,234 -9 during the privatisation period
Non-current assets held for sale and disposal • On the liabilities side the noticeable reduction in
65 107 65
groups
liquidity reserves resulted in particular in a marked
Other assets 1,373 1,329 -3 decrease in liabilities to customers to EUR
Total assets 55,121 50,199 -9 23,524mn (PY: EUR 28,093mn); in line with the
funding strategy, temporary deposits in particular
were reduced as planned
Liabilities to banks 5,470 5,204 -5
Liabilities to customers 28,093 23,524 -16
Securitised liabilities 9,458 9,271 -2
Trading liabilities 2,812 2,945 5
Provisions 1,746 1,786 2
Subordinated capital 1,614 1,595 -1
Equity 4,437 4,365 -2
Other liabilities 1,491 1,509 1
Total equity and liabilities 55,121 50,199 -9
Investor Presentation - IFRS Group Result H1 2019
22 29 August 2019Statement of income
Group
in EUR mn, IFRS
6M 2018 6M 2019
Net interest income 293 227
Net commission income 23 28
1
Result from hedging -9 -4
1
Result from financial instruments categorised as FVPL -34 -37
Net income from financial investments 78 7
Result from the disposal of financial assets classified as AC -3 5
Total income 348 226
Loan loss provisions 131 25
Hedging effect of credit derivative of the second loss guarantee -50 -
Total income after loan loss provisions 429 251
1
Administrative expenses -207 -190
1
Other operating result 13 80
1
Expenses for bank levy and deposit guarantee fund -40 -37
Net income before restructuring and privatisation 195 104
Net income from restructuring and privatisation -31 -8
Expenses for government guarantees -158 -
Net income before taxes 6 96
Income tax expenses -76 -91
Group net result -70 5
1 The previous year figure was adjusted. For more details, please refer to Note 2 of the “interim financial statements” as at 30th June 2019
Investor Presentation - IFRS Group Result H1 2019
23 29 August 2019Segment overview
Corporate Real Estate Treasury & Other and
Clients Clients Shipping Markets Consolidation Group
in EUR mn, IFRS
6M 6M 6M 6M 6M 6M 6M 6M 6M 6M 6M 6M
2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019
Total income 106 92 95 104 52 59 182 29 -87 -58 348 226
1
Loan loss provisions -4 -22 3 -41 140 87 18 -1 -76 2 81 25
2
Administrative expenses -72 -64 -47 -47 -30 -32 -52 -42 -6 -5 -207 -190
Net income before taxes 15 -12 38 56 138 111 136 -20 -321 -39 6 96
Segment assets (in EUR bn) 11.5 11.2 12.4 13.0 4.5 4.3 19.3 14.1 7.4 7.6 55.1 50.2
1Summary of the items loan loss provisionsand hedging effect from credit derivative of the second loss guarantee; 2After changing of cost allocation; previous year‘s figures adjusted accordingly
Investor Presentation - IFRS Group Result H1 2019
24 29 August 2019Hamburg Commercial Bank makes capital market debut with
successful senior preferred benchmark-bond
Transaction Highlights Transaction Details Allocation by geography
• After a well-received deal-related Issuer Hamburg Commercial Other
Iberia
roadshow Hamburg Commercial Bank Bank AG 5%
has issued its inaugural benchmark UK/Irl 4%
bond, a EUR 500mn (no-grow) 3yr Format Reg S, Bearer 7%
senior preferred transaction Type Senior Preferred Notes
• Marketing began on Thursday 16th May
Rating Baa2 (Moody‘s) France 15%
9:00 M (CET) with a guidance of mid
swap plus 90-95 bp. Within one hour Coupon 0,50%
the book was above the envisaged deal
Settlement
size 69%
Date 23 May 2019
• On the basis of a strong order book of Germany/
above 1bn EUR at 12:00 noon (CET) Maturity AT/CH
HCOB was able to revise the spread to Date 23 May 2022
mid swap plus 80 bp area Size EUR 500mn
• The book closed at 12:30 pm (CET) Allocation by investor type
with a volume of more than 1.1bn EUR, Joint Lead BNP Paribas, Commerzbank,
Corporates CB/OI
allowing the final price to be set at mid Managers Deutsche Bank, Goldman
Banks/PBs
Sachs, Hamburg Commercial 2%
swap plus 75 bp 7%
Bank 2%
• HCOB’s strong investor base in
German speaking countries accounts Senior
for 69% of the deal, with 31% allocated Co-Lead CaixaBank
to investors in various European
countries Denoms EUR 100k + EUR 100k 32%
57% Funds
• With several lead orders as well as Listing Hamburg
numerous granular orders HCOB
Re-Offer
achieved a great participation of real
Spread MS +75 bp Insurance/
money investors
Pension
ISIN DE000HCB0AD0
Investor Presentation - IFRS Group Result H1 2019
25 29 August 2019Contacts
Ian Banwell Hamburg Commercial Bank AG
COO Gerhart-Hauptmann-Platz 50
D-20095 Hamburg
Oliver Gatzke Hamburg Commercial Bank AG
CFO/CTO Gerhart-Hauptmann-Platz 50
D-20095 Hamburg
Ralf Löwe Tel. no.: +49 (0) 431 900 25421 Hamburg Commercial Bank AG
Treasury & Markets investor-relations@hcob-bank.com Gerhart-Hauptmann-Platz 50
Head of Funding/ D-20095 Hamburg
Investor Relations
Martin Jonas Tel. no.: +49 (0) 40 3333 11500 Hamburg Commercial Bank AG
Head of Investor Relations investor-relations@hcob-bank.com Gerhart-Hauptmann-Platz 50
D-20095 Hamburg
Investor Presentation - IFRS Group Result H1 2019
26 29 August 2019Abbreviations
ABF Asset-based Funding EdB Entschädigungseinrichtung deutscher Banken
AG Aktiengesellschaft [German public limited [Compensation Scheme of German Banks]
company] EU COM European Commission
AöR Anstalt öffentlichen Rechts [German FTE Full time equivalent
institution under public law] HGB Handelsgesetzbuch [German Commercial
APAC Asia Pacific Code]
Bawag / BAWAG P.S.K. Bank für Arbeit und Wirtschaft und imug Institut für Markt-Umwelt-Gesellschaft
Österreichische Postsparkasse [Institute for Market-Environment Society]
Aktiengesellschaft IFRS International Financial Reporting Standards
BCA Baseline credit assessment KG Kommanditgesellschaft [Limited partnership]
BdB Bundesverband deutscher Banken KPI Key performance indicator
[Association of German Banks] LBO Leveraged Buyout
BRRD Bank Recovery and Resolution Directive LCR Liquidity Coverage Ratio
BU Business Unit LLC Limited Liability Company
B.V. Besloten vennootschap met beperkte L.P. / LP Limited Partnership
aansprakelijkheid [Dutch limited liability M&A Mergers & Acquisitions
company] NCI Net commission income
CCO Chief Customer Officer NII Net Interest Income
CEO Chief Executive Officer NPE /NPL Non-Performing Exposure / Loan
CET1 Common Equity Tier 1 NSFR Net Stable Funding Ratio
CFO Chief Financial Officer OPEX Operational Expenditure
CIR Cost-Income Ratio P&L Profit and Loss
COO Chief Operating Officer RoE Return on Equity
CRO Chief Risk Officer RWA Risk-Weighted Assets
CTO Chief Technical Officer SFG Sparkassen-Finanzgruppe [German Savings
DSGV Deutscher Sparkassen- und Giroverband Banks Finance Group]
[German Savings Bank Association] SPV Special purpose vehicle
EaD Exposure at Default S&P Standard & Poor’s
Unsec. Unsecured
Investor Presentation - IFRS Group Result H1 2019
27 29 August 2019Disclaimer The market and other information contained in this presentation is for general informational purposes only. This presentation is not intended to replace either your own market research or any other information or advice, in particular of a legal, tax or financial nature. This presentation does not contain all material information needed to make important financial decisions, in particular investment decisions, and may differ from information and estimates from other sources/market participants. The presentation is neither an offer nor a solicitation to buy or sell securities or other forms of investment of Hamburg Commercial Bank AG or other companies, nor does it constitute any advice or recommendation to that effect. In particular, it is not a prospectus. Investment decisions relating to securities or other forms of investment of Hamburg Commercial Bank AG or other companies should not be based on this presentation. Hamburg Commercial Bank AG points out that the market information presented herein is only intended for professional, financially experienced investors who are able to assess the risks and opportunities of the market(s) discussed and obtain comprehensive information from a number of different sources. The statements and information contained in this presentation are based on information that Hamburg Commercial Bank AG has researched or obtained from generally accessible sources. While Hamburg Commercial Bank AG generally regards the sources used as reliable, it cannot assess such reliability with absolute certainty. Hamburg Commercial Bank AG did not perform any checks of its own on the factual accuracy of the individual pieces of information from these sources. Furthermore, this presentation contains estimates and forecasts based on numerous assumptions and subjective assessments made by Hamburg Commercial Bank AG, as well as outside sources, and only represents non-binding views regarding markets and products at the time the estimate/forecast was prepared. Forward-looking statements are subject to risks and uncertainties that are impossible to influence; a number of factors (e.g. market fluctuations, unexpected market developments in Germany, the EU or the US, etc.) may result in a forward-looking statement proving to be unfounded at a later date. Hamburg Commercial Bank AG does not enter into any obligation to update the information contained in this presentation. Hamburg Commercial Bank AG and its employees and executive bodies provide no guarantee, despite exercising due care, that the information and forecasts provided are complete, up- to-date or accurate. Neither Hamburg Commercial Bank AG nor its executive bodies or employees can be held liable for any direct or indirect losses or other damage that may arise from the use of this presentation, excerpts from this presentation or its contents, or for loss or damage that otherwise arises in connection with this presentation. In general, this document may only be distributed in accordance with the statutory provisions that apply in the relevant countries, and individuals in possession of this document should familiarise themselves with the applicable local provisions. Hamburg Commercial Bank AG points out that the presentation is intended for the recipient and that the distribution of this presentation or information contained herein to third parties is prohibited. In particular, this presentation may not be used for advertising purposes. Losses incurred by Hamburg Commercial Bank AG as the result of the unauthorised distribution of this presentation or any of its contents to third parties are to be fully compensated for by the distributor. Such person must hold Hamburg Commercial Bank AG harmless from any third-party claims resulting from the unauthorised distribution of this presentation and from all legal defence costs incurred in connection with such claims. This applies, in particular, to the distribution of this presentation or information contained therein to persons located in the US. Management system and defined management indicators of the IFRS Group The Bank’s integrated management system is aimed at the management of key value drivers on a targeted basis. The Bank (which was operating under the name HSH Nordbank AG up until February 4, 2019) uses a risk-adjusted key indicator and ratio system for this purpose that ensures that the Overall Bank, Core Bank and Non-Core Bank are managed in a uniform and effective manner. The Hamburg Commercial Bank Group is managed mainly on the basis of figures for the Group prepared in accordance with the International Financial Reporting Standards (IFRS) and/or the relevant prudential rules. Within the management reporting framework, the Bank focuses on the most important management indicators for the individual value drivers of the IFRS Group. On the one hand, the focus is on how these key indicators changed compared to the previous year and, on the other, on how they are expected to change in the future. The Group management report for the 2018 financial year will contain further information on the management system and defined management parameters of the Hamburg Commercial Bank Group, the Core Bank and the Non-Core Bank, as well as disclosures. Investor Presentation - IFRS Group Result H1 2019 28 29 August 2019
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