Presentation to Fixed Income Investors - HVB Group - Presentation to Fixed Income Investors - HypoVereinsbank
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Presentation to Fixed Income Investors HVB Group – Presentation to Fixed Income Investors Munich, September 2018
Agenda
HypoVereinsbank at a glance
Update on latest results
Funding
Cover pool
Annex
Contacts
2
As part of Pan European UniCredit, HypoVereinsbank has an excellent
market position in the strong German economy
Excellent market position Top 3 German private bank1
Strong operating performance €914m net operating profit (HY2018)
Excellent leverage ratio 5.1% (fully loaded, HY2018)
Outstanding capital ratio 20.7% (CET1 fully loaded, HY2018)
Strong balance sheet €294.4bn (HY2018)
Highly qualified workforce 12,468 FTE (HY2018)
Part of UniCredit, a simple successful Pan European
Member of UniCredit Group Commercial Bank with a fully plugged in CIB and a
strong and global banking network
General remark Unless stated otherwise "HypoVereinsbank" refers to UniCredit Bank AG and its subsidiaries (HVB Group) in this document
3 1. HypoVereinsbank ranked as top 3 German private bank based on Bundesbank definition of "Bankengruppe der Großbanken" in Germany and balance sheet ranking, FY2016Resilient business model: Well balanced with access to a wide range
of national and international clients
Commercial Banking Corporate & Investment Banking
International competence centre for UniCredit S.p.A. and
fully plugged into Commercial Banking
• Corporate
The "go to" bank for the German Mittelstand • Financing & Advisory (F&A)
Access to leading capital raising & financing solutions
• Retail
First mover in modernization of branch network • Markets
with extended digital services Top class solutions across multiple asset classes & channels
• Private Banking & Wealth Management • Global Transaction Banking (GTB)
Solid market position in growing German market Best-in-class cash management, export, trade & supply chain finance
as well as securities services
#2 Private sector lender for #1 All German syndicated loans: #1 German corporate loans:
Best bank for German mid cap2
German mid caps1 13.2% market share4 16.3% market share4
#2 All German bonds in EUR:
Private Banking: Summa cum laude3
8.6% market share4
1. Source: Internal analysis 4. Source: Dealogic, 6M 2017
4 2. Source: Focus Money survey, 10/08/2016
3. Source: Handelsblatt Elite Report 2017Agenda
HypoVereinsbank at a glance
Update on latest results
Funding
Cover pool
Annex
Contacts
5HypoVereinsbank with positive business performance in the
extremely challenging market environment in 2018
HY2017 HY2018 ∆
Operating income €2,758m €2,383m -13.6%
Operating costs €-1,688m €-1,570m -7.0%
Operating profit €1,070m €813m -24.0%
Profitability Net write-down of loans and provisions
for guarantees and commitments €-128m €+101m -
Net operating profit €942 m €914m -3.0%
Profit before tax €933m €602m -35.5%
30/06/2017 30/06/2018 ∆
Total assets €.299bn €294bn -1.7%
Balance sheet Shareholders' equity €18.9bn €17.8bn -5.9%
Leverage ratio (Basel III, fully loaded) 5.1% 5.1% -
Common Equity Tier 1 ratio (fully loaded) 21.1% 20.7% -40bp
Regulatory Risk weighted assets (including equivalents for
market risk and operational risk) €78.7bn €79.9bn +1.5%
ratios
Liquidity Coverage Ratio (LCR) >100% >100% -
6Development in Commercial Banking and Corporate & Investment
Banking proves well-balanced business model
Commercial Banking Corporate & Investment Banking
Operating Income operating Income
in €m in €m
-2.2% -23.2%
1,206 1,179 1,321
1,015
HY2017 HY2018 HY2017 HY2018
x
7Healthy balance sheet provides sound base for sustainable growth
and business continuity
Capital (CET1 fully loaded) Leverage ratio (Basel III, fully loaded) Risk-weighted assets1
in % in % in €bn
81.6 78.7 79.9
20.4 21.1 20.7
5.3 5.1 5.1
FY2016 FY2017 HY2018 FY2016 FY2017 HY2018 FY2016 FY2017 HY2018
• Continously excellent capital base by both • The leverage ratio remained quite stable • The total risk-weighted assets determined in
national and international standards. since 2016. accordance with Basel III requirements
amounted to €79.9 billion at 30 June 2018
and were thus €1.2 billion higher than year-
end 2017.
1. Including equivalents for market risk and operational risk
8Agenda
HypoVereinsbank at a glance
Update on latest results
Funding
Cover pool
Annex
Contacts
9Well diversified and centrally coordinated funding and liquidity
profile
• UniCredit SpA is operating as the Group Holding as well as the Italian
operating bank:
TLAC/MREL issuer assuming Single-Point-of-Entry (SPE)
Coordinated Group-wide funding and liquidity management
to optimise market access and funding costs
Diversified by geography and funding sources
Western CEE Banks
Europe (11 CEE countries(1))
(1) Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Romania, Russia, Slovakia, Slovenia, Serbia and Turkey
10HypoVereinsbank: Funding and liquidity management
HypoVereinsbank1 funding according to prudent liquidity policy with clearly defined objectives:
• Optimisation of projected cash flows
• Restriction of cumulative short-term and operational liquidity differences
• Performance of stress tests at regular intervals
• Limitation of long-term maturity mismatches between asset and liability side of the balance sheet
UniCredit Bank AG – Issuer Profile
• Own debt issuance programmes A leading Pfandbrief issuer: €15bn2 Covered bonds
• Local funding plan and funding curves outstanding
• Coordinated liquidity management to optimise funding cost and market access • 82% mortgage covered bonds
• 18% public sector covered bonds
• Own market approach locally and globally for diversified product range
• Mortgage and public covered bonds ("Pfandbriefe")
Funding as of 29 June 2018:
• Private placements
• More than 50% of wholesale funding in covered
• Retail issues
bonds
• Certificates
• Senior unsecured funding mainly in structured
• Registered notes secured and unsecured
format
• Long term investor relations, Market Making for own issues
• Stable funding source via access to group wide retail network
1 The legal entity to execute the funding plan/issuance programme is mainly "UniCredit Bank AG"
11
2 Figure as of 29 June 2018HypoVereinsbank's funding mix:
Sustainable, diversified and risk adjusted
• Strict three-pillar funding strategy1: Split of outstanding issuance2 by instrument type
in %
• Sustainability
• Solid medium/long term funding with constant presence on the debt capital
market
• Declining outstanding issuance volume within a solid balance sheet structure
(2010: >€62bn; 06/2018: €29bn)
• Diversification
43%
• Diversification and activity in all channels to avoid concentration risk
€29bn
especially with regard to seniors 52%
• Covered bonds ("Pfandbriefe") as important source of funding due to cost-
efficiency, first-class credit quality and high degree of safety for investors
• Risk Management
• Maturity diversification to avoid concentration risk
2%
3%
Senior Subordinated Securitisation Pfandbriefe
1 The legal entity to execute the funding plan/issuance programme is mainly "UniCredit Bank AG"
2 Incl. UniCredit Bank AG and UniCredit Luxembourg S. A.; Figures as of June 2018, Net volume of senior, subordinated and covered “Pfandbriefe & Securitisation" (without own issuances held on
12
own book, incl. HVB Group positions); Positions within the UC Group are excluded, except held for trading purposesMedium-Long Term Funding: Solid and diversified funding structure
• HypoVereinsbank's1 funding risk continues to remain Funding volume and breakdown of funding sources2
on a low level due to in €bn
• use of various channels
• wide range of funding products 5.7
5.3
• issuance in multiple asset classes and markets 4.5
• well diversified group of investors
3.1
• Issuance of senior preferred funding
• With effect of 21 July 2018 in Germany the liability
waterfall was harmonised with respect to the ranking of
senior debt across the EU.
2015 2016 2017 2018 planned
• Giving the issuers the possibility to issue non-preferred
notes which needs to be specified within the Mortgage Covered Bonds
Unsecured Private Placements & Schuldscheine
documentation.
Unsecured Retail Placement Public Sector Covered Bonds
• Senior preferred defined as the new reference senior
debt class.
• HypoVereinsbank is active as issuer of preferred senior.
1 The legal entity to execute the funding plan/issuance programme is mainly "UniCredit Bank AG"; without Other M/L Term Funding transactions and Supranational Funding
2 Calculation incl. forward transactions, without Other M/L Term Funding and Supranational Funding
13Ratings of HypoVereinsbank reflect robust business model and
strong focus on the German market
Long-term / Outlook / Sen. -Sen. Unsec. Bank Debt: A2/ stable / - Issuer Credit Rating: BBB+/ developing/ A-2 Deposits: BBB+/ - / F2
Short-term
Jr. -Sen. Unsec. Bank Debt : Baa3 “Non-preferred” Sen. Unsec. debt: BBB / -/ - Issuer Default Rating: BBB+ / neg / F2
Stand-alone Rating baa2 bbb+ bbb+
Public Sector Covered
Aaa / - AAA / stable AAA / stable
Bonds / Outlook
Mortgage Covered Bonds /
Aaa / - - AAA / stable
Outlook
x
Ratings as of 10th of August 2018
14Agenda
HypoVereinsbank at a glance
Update on latest results
Funding
Cover pool
Annex
Contacts
15HypoVereinsbank's cover pool at a glance:
A strong Pfandbrief house
per 31/12/2017 Mortgage Public Total cover pool – Split mortgage and public sector
HY2018
Pool type Dynamic
Cover pool (€m) Mortgage pool Public sector pool
Nominal value1 26,551 5,100
Net present value 29,093 5,745
1.7% 10.4%
Substitute assets 460 0 0.5%
Total number of loans 165,839 2,081 31.9%
Fixed rate loans 79.0% 82.3% €27.0bn €5.1bn
Floating rate loans 21.0% 17.7% 35.8%
66.4%
53.3%
Outstanding issues (€m)
Nominal value 18,330 4,153
Residential Local authorities
Net present value 19,411 4,573 Commercial Regional authorities
Substitute assets Other
Overcollateralisation2 47.4% 22,.5% State
x
1. Excluding substitute assets
2. OC calculated with nominal values of cover pool and outstanding issues
16Mortgage cover pool with purely German assets
Cover pool HypoVereinsbank1 Cover pool all vdp-members1
HY2018 HY2018
• As one of the oldest Pfandbrief players in Germany,
HypoVereinsbank is well acquainted with the 0.00%
characteristics of the highly regulated German 1% 4%
market 12%
• With exclusively German assets in the mortgage
cover pool, HypoVereinsbank benefits from the €26.6bn1 €250.1bn2
country's solid and reliable economic situation
• With 17 percent, the non-German exposure of the 100.0% 83%
members of the Association of German Pfandbrief
Banks (vdp) is substantially higher compared to
HypoVereinsbank
Germany EUR Core Germany EUR Core EUR Periphery Rest of world
x
1. Without further cover assets EUR Periphery: BUL, EST, GR, IT, IRL, LET, LIT, MALT, PORT, RO, SLO, SK, ESP, HU, CY
2. EUR Core: B, DK, F, FIN, GB, LUX, NL, AUT, PL, S, CZ, LIE, EU Rest of world: ISL, NOR, CH, JAP, CAN, USA
17Mortgage cover pool with solid foothold
in economically strong Bavaria
Mortgage cover pool by location1 Mortgage cover pool by size1
HY2018 HY2018 in €m
• HypoVereinsbank mortgage cover pool is
3%
mostly concentrated in economically strong 5% 2% Total €26,551m
federal state Bavaria where the bank has 2%
strongest presence 11%
43%
• The non-Bavarian mortgage cover pool is well 6% €26.6bn1
diversified between the capital Berlin and the
5%
remaing federal states
2%
• Mortgages of up to three hundred thousand 8%
6% 2% 5% 10,527.0
Euros account for almost 50 percent of the
entire mortgage cover pool basing it on a wide
an solid foundation 6,206.8
Bavaria Baden-Wuerttemberg 5,679.8
Rheinland-Palatinate Hesse 4,138.3
North Rhine-Westphalia Lower Saxony
Schleswig-Holstein Other Western German States
Berlin Thuringia
Saxony Brandenburg
Other Eastern German States €0-€300k €300k-€1m €1m-€10m more than
€10m
x
1. Without further cover assets in accordance with section 19 (1) PfandBG
18High quality mortgage cover pool due to consistent risk management
Risk map residential real estate1 Loan-to-value limits
for retail and private banking clients
Consistent risk management 4% Division Risk color LTV limit2
• Internal risk map based on empirical data 4% 3% Owner-
Buy to let
from decades serves as basis for Loan-to- occupied
value (LTV) limits 3%
11% Retail 95% 80%
• All focus areas of HypoVereinsbank's 2%
mortgage cover pool in low risk regions 3%
Retail 85% 70%
• Majority of the mortgage cover pool with a 7% 5%
LTVInvestors benefit from high level of overcollateralization of
outstanding Pfandbriefe
Total mortgage cover pool development and nominal overcollateralization in historical comparison
in €bn
26.5 26.4 27.0
25.4 24.6 25.3 25.9
24.3
6.0
9.5 8.7
5.8 9.0 8.8
8.7 10.2
20.5 18.5
16.4 17.1 16.9 18.3
2.01 1.21 2.21 0.81 15.9 0.81 15.1 0.81 0.51 0.51
+ + + + + + + +
24.52 23.12 23.22 23.82 24.52 25,22 25.92 26.62
2011 2012 2013 2014 2015 2016 2017 HY2018
Overcollateralisation Mortgage Pfandbriefe
x
1. Further cover assets in accordance with section 19 (1) German Pfandbrief Act
2. Mortgage cover assets: There are no derivatives and foreign currency assets used as cover for Mortgage Pfandbriefe
20High percentage of long lasting client relationship minimizes risk
Cover pool mortgages (nominal) per closing date
in €m
10,561.0
4,820.0
2,682.0
1,486.0 1,486.0 1,940.0
868.0 1,161.0 1,129.0
419.0
≤1992 1993-1995 1996-1998 1999-2001 2002-2004 2005-2007 2008-2010 2011-2013 2014-2016 2017-2018
ca. 50%
• Roughly 50% of HypoVereinsbank's cover pool mortgages date back to more than five years
• Reliable and predictable customer base due to long term client relationship
x
21Excellent payment discipline:
Arrear ratio1 below 0.005% for years
Payments in Arrears
in €m and % share of the mortgage cover pool (arrear ratio)
0.004% 0.003% 0.004% 0.003%
0.004% 0.003% 0.003% 0.003% 0.003% 0.004% 0.002%
0.003%
0.002% 0.002% 0.002% 0.002% 0.002%
0.002%
0.9 0.9 1.0 1.0 0.001%
0.8 0.001% 0.002%
0.7 0.7 0.8 0.7 0.8 0.8
0.5 0.5 0.6 0.5 0.5
0.4 0.3 0.4 0.4 0.4
2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018
Total mortgage cover pool
in €m
26,300 26,551
25,229 25,374 25,534 25,306 25,185 25,758 25,930
24,468 24,468 24,253 24,773 24,522 24,577 24,711 24,940 24,760
24,071 24,069 24,380
2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018
x
1. Payments more than 90 days overdue in relation to mortgage receivables
22Well matching maturity profiles of mortgages and Pfandbrief issues
Maturity structure of outstanding mortgage Pfandbriefe versus related cover assets HY2018
in €m
9,592
5,392
4,721
4,037
3,212 3,315 3,469 3,328
2,563 2,543
1,740
1,087
1-2 years >2-3 years >3-5 years >5-10 years >10 years
Cover Assets Mortgage Pfandbriefe
x
23Agenda
HypoVereinsbank at a glance
Update on latest results
Funding
Cover pool
Annex
Contacts
24Overview of benchmark issues
COVERED Bonds – Benchmark issues since HY2015
Initial Tenor and
Pfandbrief Type Issued Volume Issue Date Maturity Spread
Interest Type
Mortgage Pfandbriefe 8Y. FXD RATE €0.5bn Jul-15 Jul-23 midswap -13bp
Mortgage Pfandbriefe 5Y. FXD RATE €0.5bn Oct-15 Oct-20 midswap -9bp
Mortgage Pfandbriefe 4Y. FXD RATE €0.5bn Dec-15 Dec-19 midswap -5bp
Mortgage Pfandbriefe 6Y. FXD RATE €1.0bn Feb-16 Mar-22 midswap +1bp
Mortgage Pfandbriefe 9Y. FXD RATE €0.750bn May-17 May-26 midswap -10bp
Mortgage Pfandbriefe 6Y. FXD RATE €0.5bn Jun-17 Oct-23 midswap -10bp
25Agenda
HypoVereinsbank at a glance
Update on latest results
Funding
Cover pool
Annex
Contacts
26Contacts • Holger Oberfrank • Pier Mario Satta Head of Medium and Long-Term Desk Head of Finance Telefon +49 (0)89 378-14377 Telefon +49 (0)89 378-13040 Holger.Oberfrank@unicredit.de PierMario.Satta@unicredit.de Publication of Cover Pool data according to § 28 Pfandbriefact: https://investors.hypovereinsbank.de/cms/english/investorrelations/emissions/pfandbrief.html Imprint UniCredit Bank AG Arabellastraße 12 D-81925 Munich 27
Disclaimer
This publication is presented to you by: The information provided herein (including any report set out herein) does not constitute a In jurisdictions where UniCredit is not registered or licensed to trade in securities, commodities or
Corporate & Investment Banking UniCredit Bank AG, Arabellastr. 12, D-81925 Munich solicitation to buy or an offer to sell any securities. The information in this publication is based on other financial products, any transaction may be effected only in accordance with applicable laws
carefully selected sources believed to be reliable but we do not make any representation as to its and legislation, which may vary from jurisdiction to jurisdiction and may require that a
The information in this publication is based on carefully selected sources believed to be reliable. accuracy or completeness. Any opinions herein reflect our judgement at the date hereof and are transaction be made in accordance with applicable exemptions from registration or licensing
However we do not make any representation as to its accuracy or completeness. Any opinions subject to change without notice. requirements.
herein reflect our judgement at the date hereof and are subject to change without notice. Any We and/or any other entity of Corporate & Investment Banking of UniCredit may from time to All information contained herein is based on carefully selected sources believed to be reliable, but
investments presented in this report may be unsuitable for the investor depending on his or her time with respect to securities mentioned in this publication (i) take a long or short position and UniCredit makes no representations as to its accuracy or completeness. Any opinions contained
specific investment objectives and financial position. Any reports provided herein are provided for buy or sell such securities; (ii) act as investment bankers and/or commercial bankers for issuers of herein reflect UniCredit’s judgement as of the original date of publication, without regard to the
general information purposes only and cannot substitute the obtaining of independent financial such securities; (iii) be represented on the board of any issuers of such securities; (iv) engage in date on which you may receive such information, and are subject to change without notice.
advice. Private investors should obtain the advice of their banker/broker about any investments “market making” of such securities; (v) have a consulting relationship with any issuer. Any UniCredit may have issued other reports that are inconsistent with, and reach different
concerned prior to making them. Nothing in this publication is intended to create contractual investments discussed or recommended in any report provided herein may be unsuitable for conclusions from, the information presented in any report provided herein. Those reports reflect
obligations. Corporate & Investment Banking of UniCredit consists of UniCredit Bank AG, Munich, investors depending on their specific investment objectives and financial position. Any the different assumptions, views and analytical methods of the analysts who prepared them. Past
UniCredit Bank Austria AG, Vienna, UniCredit S.p.A., Rome and other members of the UniCredit. information provided herein is provided for general information purposes only and cannot performance should not be taken as an indication or guarantee of further performance, and no
UniCredit Group and its subsidiaries are subject to regulation by the European Central Bank. In substitute the obtaining of independent financial advice. representation or warranty, express or implied, is made regarding future performance.
addition UniCredit Bank AG is regulated by the Federal Financial Supervisory Authority (BaFin), UniCredit Bank AG London Branch, Moor House, 120 London Wall, London, EC2Y 5ET, is subject to We and/or any other entity of Corporate & Investment Banking of UniCredit may from time to
UniCredit Bank Austria AG is regulated by the Austrian Financial Market Authority (FMA) and regulation by the European Central Bank (ECB) and is authorised by Bundesanstalt für time, with respect to any securities discussed herein: (i) take a long or short position and buy or
UniCredit S.p.A. is regulated by both the Banca d'Italia and the Commissione Nazionale per le Finanzdienstleistungsaufsicht (BaFin) and subject to limited regulation by the Financial Conduct sell such securities; (ii) act as investment and/or commercial bankers for issuers of such
Società e la Borsa (CONSOB). Authority and Prudential Regulation Authority. Details about the extent of our regulation by the securities; (iii) be represented on the board of such issuers; (iv) engage in “market-making” of
Financial Conduct Authority and Prudential Regulation Authority are available from us on request. such securities; and (v) act as a paid consultant or adviser to any issuer.
Note to UK Residents: Notwithstanding the above, if this publication relates to securities subject to the Prospectus The information contained in any report provided herein may include forward-looking statements
In the United Kingdom, this publication is being communicated on a confidential basis only to Directive (2005) it is sent to you on the basis that you are a Qualified Investor for the purposes of within the meaning of US federal securities laws that are subject to risks and uncertainties.
clients of Corporate & Investment Banking of UniCredit (acting through UniCredit Bank AG, London the directive or any relevant implementing legislation of a European Economic Area (“EEA”) Factors that could cause a company’s actual results and financial condition to differ from its
Branch) who (i) have professional experience in matters relating to investments being investment Member State which has implemented the Prospectus Directive and it must not be given to any expectations include, without limitation: Political uncertainty, changes in economic conditions
professionals as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial person who is not a Qualified Investor. By being in receipt of this publication you undertake that that adversely affect the level of demand for the company’s products or services, changes in
Promotion) Order 2005 (“FPO”); and/or (ii) are falling within Article 49(2) (a) – (d) (“high net you will only offer or sell the securities described in this publication in circumstances which do foreign exchange markets, changes in international and domestic financial markets, competitive
worth companies, unincorporated associations etc.”) of the FPO (or, to the extent that this not require the production of a prospectus under Article 3 of the Prospectus Directive or any environments and other factors relating to the foregoing. All forward-looking statements
publication relates to an unregulated collective scheme, to professional investors as defined in relevant implementing legislation of an EEA Member State which has implemented the contained in this report are qualified in their entirety by this cautionary statement.
Article 14(5) of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Prospectus Directive.
Schemes) (Exemptions) Order 2001 and/or (iii) to whom it may be lawful to communicate it, UEFA and its affiliates, member associations and sponsors (excluding UniCredit and UniCredit
other than private investors (all such persons being referred to as “Relevant Persons”). This Note to US Residents: Bank AG) do not endorse, approve or recommend the Product and accept no liability or
publication is only directed at Relevant Persons and any investment or investment activity to The information provided herein or contained in any report provided herein is intended solely for responsibility whatsoever in relation thereto.
which this publication relates is only available to Relevant Persons or will be engaged in only with institutional clients of Corporate & Investment Banking of UniCredit acting through UniCredit Bank
Relevant Persons. Solicitations resulting from this publication will only be responded to if the AG, New York Branch and UniCredit Capital Markets LLC (together “UniCredit”) in the United
person concerned is a Relevant Person. Other persons should not rely or act upon this publication States, and may not be used or relied upon by any other person for any purpose. It does not Corporate & Investment Banking
or any of its contents. constitute a solicitation to buy or an offer to sell any securities under the Securities Act of 1933, UniCredit Bank AG as of April 12, 2016
as amended, or under any other US federal or state securities laws, rules or regulations.
Investments in securities discussed herein may be unsuitable for investors, depending on their
specific investment objectives, risk tolerance and financial position.
28You can also read
