CAPITAL RATIOS & LEVERAGE RATIO 4 EMPLOYEESANGFRIST-RATINGS??

Transcription

1 1 INCOME STATEMENT 2 BALANCE SHEET 3 CAPITAL RATIOS & LEVERAGE RATIO 4 EMPLOYEESANGFRIST-RATINGS?? 5 KEY GROUP MANAGEMENT INDICATORS 6 KEY CORE BANK MANAGEMENT INDICATORS 7 KEY MANAGEMENT INDICATORS OF THE NON-CORE BANK 8 STRUCTURE OF LIABILITIES BY FINANCIAL INSTRUMENT IMPORTANT CHARTS 9 SEGMENT OVERVIEW 10 RISK-BEARING CAPACITY OF THE GROUP 11 DEFAULT RISK STRUCTURE BY RATING CATEGORY 12 DEFAULT RISK STRUCTURE BY SECTOR 13 DEFAULT RISK STRUCTURE BY RESIDUAL MATURITIES 14 FOREIGN EXPOSURE BY REGION 15 EXPOSURE AT DEFAULT IN SELECTED EUROPEAN COUNTRIES 16 CHANGES IN LOAN LOSS PRO VISIONS IN THE LENDING BUSINESS TOTAL LOAN LOSS PROVISIONS 18 GROUP STATEMENT OF INCOME 19 EARNINGS PER SHARE 20 RECONCILIATION WITH TOTAL COMPREHENSIVE INCOME/LOSS 21 GROUP STATEMENT OF FINANCIAL POSITION 22 GROUP STATEMENT OF CHANGES IN EQUITY 23 GROUP CASH FLOW STATEMENT 24 HEDGING EFFECT OF THE SECOND LOSS GUARANTEE

2 1 INCOME STATEMENT in ( m) Net income before restructuring Net income before taxes Net income before taxes

3 2 BALANCE SHEET in ( bn) Equity 4,4 5,0 Total assets 70 84,4 Business volume 78,6 93,2

4 3 CAPITAL RATIOS & LEVERAGE RATIO (%) CET1-Kapitalquote (phase in) 18,5 14,1 Pro-Forma-CET 1 -Kapitalquote (ohne Garantie) 15,4 12,6 Kernkapitalquote (phasengleich) 23,5 18,7 Leverage ratio 7,7 6,9

5 4 EMPLOYEES (computed on full-time equivalent basis) Total Germany Abroad 88 96

6 5 KEY GROUP MANAGEMENT INDICATORS Net income before taxes ( m) CIR (unadjusted) 32.3 % 64.8 % RoE 9.7 % 2.5 % NPE ratio 10.4 % 17.5 % Coverage ratio 63.6 % 48.4 % Pro-forma CET1 capital ratio 1), 2) 15.4 % 12.6 % LCR % % NSFR % % 1) Same period: ceteris paribus calculation taking full account of the balance sheet amounts as at the reporting date. 2) Pro forma means that, for the items included in the reference portfolio for the second loss guarantee, the RWA are recognised in line with the credit risk rules and not in line with the rules regarding securitisation. Within this context, loan loss that have been set up are still recognised in a manner that reduces the capital requirements in line with the regulatory requirements.

7 6 KEY CORE BANK MANAGEMENT INDICATORS Net income before taxes ( m) CIR (unadjusted) 28.2 % 34.6 % RoE 20.8 % 20.7 % NPE ratio 1.6 % 1.9 % New business ( bn)

8 7 KEY MANAGEMENT INDICATORS OF THE NON-CORE BANK Net income before taxes ( m) 1, NPE ratio 67.7 % 63.6 % Coverage ratio 65.2 % 47.7 % Total assets ( bn)

9 8 STRUCTURE OF LIABILITIES BY FINANCIAL INSTRUMENT ( m) Total of which > 1 year Total of which > 1 year Secured: Covered bonds and asset-based funding 15,485 11,008 16,031 13,208 of which: Covered bonds 9,014 7,096 10,076 8,616 of which: Other secured funding 6,471 3,912 5,955 4,592 Unsecured liabilities 29,881 4,095 32,534 2,937 Unsecured (senior unsecured) 11,046 8,446 17,073 13,464 Profit participation certificates and other subordinated liabilities 1,060 1,060 2,123 1,085 Silent participations 1,700 1,700 2,072 2,072 Total 59,172 26,309 69,833 32,766

10 9 SEGMENT OVERVIEW 1) ( m) Corporate Clients Real Estate Shipping Treasury & Markets 1) Core Bank 1)3) Non-Core Bank Other and Consolidation 1)4)5) Group Total income , , , Loan loss (including credit derivative) 2) , , Administrative expenses Net income before taxes , Segment assets ( bn) ) Adjustment of the previous year s figure due to the transfer, in 2017, of funding books in which securities issued by HSH are managed from the sphere of non-reportable segments (Other) to the Treasury & Markets segment. 2) Summary of the loan loss in the lending business and hedging effect of credit derivative under the second loss guarantee line items. 3) Core Bank is the total of the four segments: Real Estate, Shipping, Corporate Clients and Treasury & Markets. 4) Net income before taxes including result from restructuring and privatisation. 5) Consolidation also includes the effects from differences in accounting.

11 10 RISK-BEARING CAPACITY OF THE GROUP ( bn) Economic risk coverage potential 1) Economic capital required of which for default risks 2) for market risks for liquidity risks 0.1 for operational risks Risk coverage potential buffer Utilisation of coverage potential (in %) ) After deducting the first loss piece under the second loss guarantee of the federal states of Hamburg and Schleswig-Holstein in the amount of 3.2 billion. 2) Taking the second loss guarantee into account.

12 11 DEFAULT RISK STRUCTURE BY RATING CATEGORY 1) ( m) 2017 Core Bank Non-Core Bank Other and Consolidation Total of which guaranteed (in %) 1(AAAA) to 1 (AA+) 16, ,615 21, (AA) bis 1 (A ) 7, ,284 9, to 5 16, , to 9 10,732 1, , to 12 1, , to 15 1, , to 18 (default categories) 840 6,649 7, Other 2) Total 53,725 9,818 8,678 72, ) Mean default probabilities (in %): 1 (AAAA) bis 1 (AA+): 0,00 0,02; 1 (AA) to 1 (A ): 0,03 0,09; 2 to 5: 0,12 0,39; 6 to 9: 0,59 1,98; 10 to 12: 2,96 6,67; 13 to 15: 10,00 20,00; 16 to 18: ) Transactions, for which there is no internal or external rating available, are reflected in the Other line item, such as receivables from third parties of our consolidated equity holdings. DEFAULT RISK STRUCTURE BY RATING CATEGORY 1) ( m) 2016 Core Bank Non-Core Bank Other and Consolidation Total of which guaranteed (in %) 1(AAAA) to 1 (AA+) 13, ,726 21, (AA) bis 1 (A ) 6, ,006 9, to 5 14,948 1,920 1,464 18, to 9 11,270 1, , to 12 1, , to 15 2,296 2, , to 18 (default categories) 1,006 13,610 14, Other 2) Total 51,703 21,406 10,517 83, ) Mean default probabilities (in %): 1 (AAAA) bis 1 (AA+): 0,00 0,02; 1 (AA) to 1 (A ): 0,03 0,09; 2 to 5: 0,12 0,39; 6 to 9: 0,59 1,98; 10 to 12: 2,96 6,67; 13 to 15: 10,00 20,00; 16 to 18: ) Transactions, for which there is no internal or external rating available, are reflected in the Other line item, such as receivables from third parties of our consolidated equity holdings.

13 12 DEFAULT RISK STRUCTURE BY SECTOR ( m) 2017 Core Bank Non-Core Bank Other and Consolidation Industry 7, ,669 Shipping 5,056 4,170 9,226 Trade and transportation 3, ,445 Credit institutions 6, ,340 10,889 Other financial institutions 1, ,753 Land and buildings 9,595 2,262 11,857 Other services 4, ,620 Public sector 15, ,757 19,172 Private households Other Total 53,725 9,818 8,678 72,220 Total DEFAULT RISK STRUCTURE BY SECTOR ( m) 2016 Core Bank Non-Core Bank Other and Consolidation Industry 7,709 1,682 9,391 Shipping 6,542 9, ,139 Trade and transportation 3, ,279 Credit institutions 3, ,946 7,838 Other financial institutions 1,849 2, ,500 Land and buildings 10,343 3, ,204 Other services 5,377 1, ,440 Public sector 12,796 1,172 5,005 18,973 Private households Other Total 51,703 21,406 10,517 83,626 Total

14 13 DEFAULT RISK STRUCTURE BY RESIDUAL MATURITIES ( m) 2017 Core Bank Non-Core Bank Other and Consolidation Up to 3 months 12,813 2, ,393 > 3 months to 6 months 1, ,285 > 6 months to 1 year 3, ,793 > 1 year to 5 years 20,440 3,096 4,776 28,312 > 5 years to 10 years 10,399 1,773 2,132 14,304 > 10 years 5,223 1, ,132 Other Total 53,725 9,818 8,678 72,220 Total DEFAULT RISK STRUCTURE BY RESIDUAL MATURITIES ( m) 2016 Core Bank Non-Core Bank Other and Consolidation Up to 3 months 7,474 4, ,493 > 3 months to 6 months 2, ,374 > 6 months to 1 year 3, ,954 > 1 year to 5 years 22,660 8,545 6,436 37,641 > 5 years to 10 years 9,696 3,410 1,989 15,095 > 10 years 6,262 3, ,070 Total 51,703 21,406 10,517 83,626 Total

15 14 FOREIGN EXPOSURE BY REGION ( m) 2017 Core Bank Non-Core Bank Other and Consolidation Eurozone 7,515 2,648 1,226 11,389 Western Europe 3,232 1,557 1,190 5,979 Eastern Europe Africa North America Latin America Middle East Asia-Pacific region 1, ,014 International organisations Total 13,638 6,628 3,020 23,286 Total FOREIGN EXPOSURE BY REGION ( m) 2016 Core Bank Non-Core Bank Other and Consolidation Eurozone 8,331 5,443 1,214 14,988 Western Europe 2,528 3,466 1,932 7,926 Eastern Europe ,079 Africa North America 1,302 1, ,124 Latin America Middle East Asia-Pacific region 1,307 2, ,707 International organisations Total 14,971 14,849 3,797 33,617 Total

16 15 EXPOSURE AT DEFAULT IN SELECTED EUROPEAN COUNTRIES ( m) Country Banks Corporates/Other Total Greece 940 1, ,478 Italy ,027 Croatia Portugal Russia Spain ,215 1,033 1,412 Turkey Cyprus 434 1, ,175 Total ,231 5,050 3,605 5,925

17 16 CHANGES IN LOAN LOSS PROVISIONS IN THE LENDING BUSINESS1) ( m) Specific loan loss / General loan loss Net currency translation income loan loss Loan loss before net currency translation income and compensation Compensation item Total Hedging effect of credit derivative second loss guarantee LLP including hedging effect of credit derivative Corporate clients Real estate clients Shipping Treasury & Markets Total Core Bank Non-Core Bank 1, , , ,295 Other and Consolidation Group 1, , , ,276 CHANGES IN LOAN LOSS PROVISIONS IN THE LENDING BUSINESS 1) ( m) Specific loan loss / General loan loss Net currency translation income loan loss Loan loss before net currency translation income and compensation Compensation item Total Hedging effect of credit derivative second loss guarantee LLP including hedging effect of credit derivative Corporate clients Real estate clients Shipping Treasury & Markets Total Core Bank Non-Core Bank 1) 1, , , Other and Consolidation Group 1, , , ) Following the changes made to the segment structure as at 30 September 2016, the figures reported for the previous year have been adjusted accordingly.

18 17 TOTAL LOAN LOSS PROVISIONS ( m) Loans and advances to customers 39,174 50,910 Loans and advances to banks 3,838 4,192 Volume of impaired loans 6,813 10,541 Non-current assets held for sale and discontinued operations (IFRS 5) 139 1,382 Total loan loss (SLLP) for loans and advances to customers 4,355 6,336 Total loan loss (GLLP) for loans and advances to customers Total loan loss (SLLP) for loans and advances to banks 0 Total loan loss (GLLP) for loans and advances to banks 1 1 Total loan loss for balance sheet items 4,494 6,712 Provisions for individual risks in the lending business Provisions for portfolio risks in the lending business 7 43 Total loan loss for off-balance sheet items Total loan loss (before compensation item) 4,561 6,822 Compensation item 5,181 7,854 Total loan loss (including compensation item) 620 1,032

19 18 GROUP STATEMENT OF INCOME FOR THE PERIOD 1 JANUARY TO 31 DECEMBER 2017 ( m) Note Interest income 3,086 3, Negative interest on cash investments and derivatives Interest expenses 2,202 2, Positive interest on borrowings and derivatives Net loss from hybrid financial instruments > 100 Net interest income (8) 1, Net commission income (9) Result from hedging (10) 18 4 > 100 Net trading income (11) > 100 Net income from financial investments (12) Net income from financial investments accounted for under the equity method (13) Total income 1, Loan loss in the lending business (14) 2, > 100 Hedging effect of credit derivative under the second loss guarantee (3) > 100 Administrative expenses (15) Other operating income (16) Expenses for bank levy and deposit guarantee fund (17) Net income before restructuring and privatisation > 100 Net income from restructuring and privatisation (18) Expenses for government guarantees (19) Net income before taxes > 100 Income tax expense (20) Group net result > 100 Group net result attributable to non-controlling interests 7 2 > 100 Group net result attributable to HSH Nordbank shareholders > 100 Change in %

20 19 EARNINGS PER SHARE ( ) Note Undiluted (22) Diluted (22) Number of shares (millions)

21 20 RECONCILIATION WITH TOTAL COMPREHENSIVE INCOME/LOSS ( m) Group net result Income and expense that have been reclassified to the statement of income or may be reclassified at a later date Changes in fair value of AfS financial instruments Unrealised gains and losses (before taxes) Gains and losses (before taxes) reclassified to the statement of income 1 36 of which from exchange rate effects 17 Income taxes recognised Differences resulting from currency translation Subtotal Income and expenses that will not be reclassified to the statement of income at a later date Credit risk-induced changes in the value of liabilities designated at fair value (before taxes) 3 Income taxes recognised 1 2 Changes resulting from the revaluation of net defined benefit liabilities (before taxes) Income taxes recognised Subtotal Other comprehensive income for the period Total comprehensive income Total comprehensive income attributable to non-controlling interests 8 2 Total comprehensive income attributable to HSH Nordbank shareholders

22 21 GROUP STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017 ASSETS ( m) Note Cash reserve (23) 6,625 3, Loans and advances to banks (24) 3,838 4,192 8 Loans and advances to customers (25) 39,174 50, Loan loss (26) 687 1, Credit derivative under the second loss guarantee (3) 1, > 100 Positive fair value of hedging derivatives (27) Positive adjustment item from portfolio fair value hedges Trading assets (28) 3,641 5, Financial investments (29) 13,647 15, Financial investments accounted for under the equity method (30) Intangible assets (31) Property, plant and equipment (32) Investment property (32) Non-current assets held for sale and disposal groups (33) 139 1, Current tax assets (34) Deferred tax assets (35) Other assets (36) Total assets 70,382 84, Change in % LIABILITIES ( m) Note Liabilities to banks (37) 8,271 9, Liabilities to customers (38) 36,205 40, Securitised liabilities (39) 12,444 16, Negative fair values of hedging derivatives (40) Negative adjustment item from portfolio fair value hedges Trading liabilities (41) 3,875 5, Provisions (42) 1,438 1,521 5 Liabilities relating to disposal groups (44) Current tax liabilities (45) Deferred tax liabilities (46) Other liabilities (47) Subordinated capital (48) 2,252 3, Equity (49) 4,373 4, Change in % Share capital 3,018 3,018 Capital reserve Retained earnings 1,701 1,617 5 Revaluation reserve Currency conversion reserve Group net result > 100 Total before non-controlling interests 4,378 4, Non-controlling interests Total equity and liabilities 70,382 84,365 17

23 22 GROUP STATEMENT OF CHANGES IN EQUITY ( m) Note Share capital Capital reserve As at 1 January , Group net result Changes resulting from the revaluation of net defined benefit liabilities Changes in fair value of AfS financial instruments Exchange rate changes thereof resulting from currency translation thereof resulting from changes in scope of consolidation Other comprehensive income Comprehensive income as at 31 December 2016 Compensation for the Group net loss for the previous year 100 Changes in the scope of consolidation As at 31 December , As at 1 January , Change due to early application of IFRS in conjunction with IAS 1.7 (f) Adjusted amount as at 1 January , Group net result Changes resulting from the revaluation of net defined benefit liabilities Changes in fair value of AfS financial instruments Credit risk-induced changes in the value of liabilities designated at fair value 1) Exchange rate changes thereof resulting from currency translation thereof resulting from changes in scope of consolidation Other comprehensive income Comprehensive income as at 31 December 2017 Addition of the Group retained earnings for the previous year Reclassifications As at 31 December 2017 (49) 3, Retained earnings Currency conversion reserve Revaluation reserve Group net result Total before noncontrollinginterests Noncontrollinginterests 1, , , , , ,950 1, , , , , , , , ,373 Total 1) The reclassification of the credit risk-induced changes in the value of liabilities designated at fair value to retained earnings is due to the repurchase of issues/promissory note loans.

24 23 GROUP CASH FLOW STATEMENT CASH FLOW STATEMENT ( m) Net result for the period Reconciliation with cash flow from operating activities Depreciation, impairments and write-ups on loans and advances, property, plant and equipment, financial investments, intangible assets and investment property 1,517 1,656 a) Loans and advances to customers and banks 1,456 1,586 b) Financial investments c) Property, plant and equipment/intangible assets/investment property Changes in Other non-cash expenses/income 1,036 2,308 Profit/loss from disposal of financial investments and property, plant and equipment/investment property a) Financial investments b) Property, plant and equipment/investment property 1 1 Other adjustments 1, Subtotal 1,297 1,134 Changes in loans and advances 10,108 7,973 a) to banks 349 1,385 b) to customers 9,759 6,588 Changes in trading assets 2,184 2,630 Changes in other assets from continuing operations 1,954 1,631 Changes in liabilities 5,204 9,265 a) to banks 1,229 4,889 b) to customers 3,975 4,376 Changes in securitised liabilities 3,979 2,020 Changes in trading liabilities 2,285 1,148 Changes in other liabilities from continuing operations Interest and dividends received 2,946 3,212 Interest paid 2,143 2,733 Income tax payments Cash flow from operating activities 1,997 1,260 Receipts from disposals of 4,226 2,483 a) securities 3,667 2,430 b) interests in affiliated companies and equity holdings c) property, plant and equipment Purchases of 2,133 1,126 a) securities 2,111 1,059 b) interests in affiliated companies and equity holdings c) property, plant and equipment 6 45 Change resulting from sale/purchase of consolidated subsidiaries 75 Cash flow from investing activities 2,168 1,357

25 24 HEDGING EFFECT OF THE SECOND LOSS GUARANTEE ( m) Balance sheet Balance sheet Statement of income Statement of income Loan loss Credit derivative Loan loss Credit derivative Loan loss Hedging effect credit derivative Loan loss Hedging effect credit derivative Hedging effect before guarantee costs 5,181 7,854 2, Compensation under the second loss guarantee 5,181 7,854 2, Payments to HSH Finanzfonds AöR 1,945 1,852 Fair valuecredit derivative 1, Hedging effect of the guarantee 5,181 1,014 7, ,