DZ BANK Part of the cooperative financial network Volksbanken Raiffeisenbanken. DZ BANK Group August 2016

Transcription

1 DZ BANK Part of the cooperative financial network Volksbanken Raiffeisenbanken DZ BANK Group August 2016

2 Agenda 1. Cooperative financial network Volksbanken Raiffeisenbanken 2. DZ BANK: Strategy and Strength 3. DZ BANK s business performance 4. Future and Sustainability Page 2

3 1. Cooperative financial network Volksbanken Raiffeisenbanken

4 Highlights of DZ BANK and the cooperative financial network One of the best ratings in the European banking sector One joint cooperative central institution after more than 100 years With our strong brands we are market leaders in many products and services 93 bn capital in the cooperative financial network Profit before taxes 2015: 9.8 bn 18.3 million members 1 as at Page 4

5 The three pillars of the German banking sector Regional focus Domestic market << 10% (each) 24% 36% share 1 Banking sector Private banking sector and foreign banks Cooperative banking sector 1 central institution: DZ BANK Group, 1,021 local coop. banks 2 Public banking sector 7 Landesbank groups, DekaBank, 409 savings banks 3 1 Market share according to deposits of private households as at , , Page 5

6 Cooperative financial network in figures Key figures Consolidated total assets Profit before taxes(in m) 9,787 10, (in per cent) 3 Cost/income ratio (in per cent) Consolidated Total Assets (in m) 1,162,519 1,135, Consolidated equity(in m) 93,007 86,501 Common equity Tier 1 capital ratio (in per cent) Leverage Ratio (in per cent, fully loaded) 6.9 n.a. Employees 187, ,719 Local cooperative banks DZ BANK Group Münchener Hypothekenbank Page 6

7 Cooperative diversity finanzgruppe.de Page 7

8 Interaction within the German Cooperative Financial Network 30 million customers, thereof 18.3 million shareholders shareholders 93 bn Consolidated equity 9.8 bn Profit before taxes 1,163 bn Consolidated Total Assets 187,296 Employees client relationship cooperative banks 1,021 banks 12,260 branches shareholders No. 4 in Germany bntotal Assets Retail Banking Capital Markets Cooperative Banks/ Verbund Corporate Banking Transaction Banking Product provider as at Page 8

9 Strengths of a fully-integrated organisational structure Strategy The Cooperative Financial Network follows a uniform strategy The strong brands of the Cooperative Financial Services Network are well known within Germany and beyond Risk assessment The Cooperative Financial Network uses a common rating language to assess its clients credit worthiness The process for joint loans in the Cooperative Financial Services Network has been further improved Transparency The Cooperative Financial Network has published consolidated accounts since 2004 Since 2009 figures according to IFRS Solidarity The Cooperative Financial Network s protection scheme guarantees for every member institution Risk-specific contributions for all members Fitch Ratings and Standard & Poor s have assigned a Verbundrating because of the high level of cohesion within the Cooperative Financial Network Page 9

10 The Cooperative institution protection of our association BVR The "Dual System" of institution protection BVR-SE BVR Protection Scheme* as Institution Protection and indirect Deposit Protection Additional voluntary protection system since 1934 Measures for the avoidance of threatening or impending economic difficulties faced by member institutions BVR-ISG 100% subsidiary of BVR BVR-Institutssicherung GmbH as direct deposit protection Officially recogniseddeposit protection system as Institutional Protection Scheme since 3 July 2015 Simplification of depositor compensation by protection of customer deposits of up to 100,000 per person per institution Liability for BVR-ISG exclusively in case of compensation Page DZ Haftung BANK für BVR-ISG ausschließlich für den Entschädigungsfall

11 Key figures and function of the Protection Scheme Members 1,021 cooperative banks, 1 central institution and special cooperative network institutes Tasks of the Institution Protection Preventing or remedying impending or existing economic difficulties at institutions affiliated with the BVR-ISG and BVR-SE protection schemes Monitoring By Federal Financial Supervisory Authority (BaFin) Institution Protection Comprehensive institution protection for all members, no bankruptcy among members since 1934 Responsible body National Association of German Cooperative Banks (BVR) Deposit Protection Comprehensive protection of customer deposits held by non-banks, including bearer bonds and certificates issued by the cooperative banks. Furthermore the BVR-ISG guarantees the statutory mandate, to provide statutory depositor compensation in accordance with the Deposit Guarantee Act in the event of bank insolvency. Page 11

12 2. DZ BANK: Strategy and Strength

13 Merger of DZ BANK and WGZ BANK Logical completion of a decades-long consolidation process number of central institutions Page 13

14 Merger of DZ BANK and WGZ BANK Further development of the cooperative superstructure Pooling of strategic competence Pooling of operative strength Continuing development of processes and structures network-oriented, transparent and efficient Realization of revenue and cost synergies More efficient allocation of available resources Page 14

15 Our vision determines the strategic guidelines for the merged DZ BANK Group The DZ BANK Group is jointly geared to the local cooperative banks in such a way as to the... Vision Vision. extends its position as a leading financial services provider in Germany on a sustainable basis. Strategic guidelines The most important prerequisite for the success of the cooperative financial network is to strengthen the position of the primary banks in their market (development mandate). The joint central institution s sharp focus on the cooperative financial network is expressed in the fact that the emphasis is placed on the cooperative network business, which is conducted in close proximity to local market conditions and which takes account of the particular characteristics of the various regional markets. The principles of cooperation between the primary banks, on the one hand, and the central institution and the cooperative sector's specialized service providers, on the other hand, are those of subsidiarity, a decentralized structure and regional market responsibility. Page 15

16 Our goal is to extend the cooperative banks market position DZ BANK Group Services for cooperative banks Goal: Ziel: Führende leading market Marktposition for the cooperative der banks banks Central institution function for around 1,020 cooperative banks Responsible for the cash pooling function in the cooperative financial network Provision of a subsidiary offering as product specialistfor Retail Banking Corporate Banking, Capital Markets and Transaction Banking Due to DZ BANK Group s business model, revenues are broadly diversified between the different customer groups and products. Page 16

17 Our vision: Central institution with focus on the cooperative financial network / financial services group" Central institution with focus on the cooperative financial network/ financial services group" meansi Region The DZ BANK Group s business activities are focused on the cooperative banks business territory (Germany) Customers Products / services Focus Network benefit The core customers of the DZ BANK Group are the cooperative banks and their customers their satisfaction is at the center of the entire group s activities As a financial services provider the DZ BANK Group provides on a decentralized basis the cooperative financial network with products, platforms and services at competitive prices and with strong brands The focus on a network-driven business takes priority, especially in times of scarce resources (capital, liquidity, human resources) The DZ BANK Group makes a major contribution to strengthening the position of the cooperative financial network in the form of fees, commissions, bonuses, profit distributions, and the transfer of cost benefits. It also provides services free of charge (e.g. advisory services). Page 17

18 Strategic directions: continuation / sharpening of the focus of the central institution / financial services group on the cooperative financial network Network-based growth Continued focusing Networking within the group and with the cooperative banks Reap potential in core activities, especially in Retail Banking and the SME business Reap earnings potential in the DZ BANK Group Network-based growth initiatives Management of scarce resources Implementation of new regulatory requirements Scrutiny of non-network activities Pooling of group-wide strategy and management functions in a single unit with just a few tasks related to the cooperative network (holding structure) Further development of governance in the DZ BANK Group DZ BANK s orientation to the cooperative financial network as a permanent creative mission Page 18

19 DZ BANK AG s Board of Managing Directors Wolfgang Kirsch Chief Executive Officer Communication/Marketing/ CR, Legal, Group Audit Hans-Bernd Wolberg Deputy Chief Executive Officer Cooperative Banks/Verbund Uwe Berghaus Corporate Banking Northern and Western Germany, Investment Promotion Dr. Christian Brauckmann IT, Organisation Karl-Heinz Moll Group Treasury, Research and Economics Lars Hille Trading, Capital MarketsRetail Clients/Customer Account Securities Business Wolfgang Köhler Capital Markets Institutional Clients Dr. Cornelius Riese Group Finance, Group Strategy and Controlling Michael Speth Group Risk Controlling Thomas Ullrich Transaction Management, Operations, Payments & Accounts, Group Human Resources Frank Westhoff Credit, Credit Special, Compliance Stefan Zeidler Corporate Banking Central Germany, Bavaria, Baden- Württemberg, Structured Finance Page 19

20 DZ BANK s subsidiaries per business activities Retail Banking Corporate Banking Cooperative Banks/ Verbund Capital Markets Transaction Banking * * *at equity Page 20

21 Retail Banking leading specialised product provider Market position in Germany Asset Management: Mutual funds 1 Asset Management: Retail derivatives 2 Consumer credits 3 Home savings Life insurance Net inflow Assets under Management, 2 Capital protection investment certificates 3 Volume of loan extensions in Germany s cooperative banking group, 4 New business, Page 21

22 Transaction Banking Market leader in processing Market position in Germany Payments 1 Issuing-Processing and POS network operation 2 Securities processing 3 EquensSE is one of the largest European services providers for payment processing and credit card payments. The company has branches in the Netherlands, Germany, Italy and Finland. With an annual processing volume of 15 bnpayments, Equenshas a market share of more than 12.5% in Europe. 1 2 CardProcessis the only full-service provider in Germany for electronic payments, covering POS network operation, acquiringprocessing, issuing-processing, routing & switching (international hub), stock exchange register services and cancellation of lost or stolen cards. 3 Deutsche WertpapierServiceBank AG (dwpbank) is the market leader in securities processing in Germany. The transaction bank handles in excess of 5.2 million securities accounts at crosssector level Number of transactions on one technical platform; 2 Number of creditcardsin processing; 3 Number of securities accounts Page 22

23 Corporate Banking DZ BANK Group as a strong partner Bank products Our offering is focused to the customer s needs Insurance Liquidity management Leasing/factoring Commercial real estate finance business Equity finance Advisory service for acquisitions and disposals Financial investments Growth Support the customer with advisory ideas from a single source Stability The business relationship is guaranteed by one of Europe s best bank ratings Safety for our customers plans for the future based on sustainable cooperation in a strong cooperative financial network Page DZ BANK

24 DZ BANK s worldwide presence to support our clients needs New York Ireland London Istanbul Moskau Beijing Mumbai Hongkong Singapur São Paulo Office/ Branch office Representative office German office Page 24

25 One of the best and most stable ratings in the European banking sector Ratings of DZ BANK Group Extracts from the rating reports Long Term Rating / Outlook Intensive cooperation and solidarity within the cooperative financial network No. 2 market position in German retail banking Stable deposits and sizable surplus liquidity Strong capitalization from high earnings retention Merger of central banks allow the sector a more streamlined approach to meeting regulatory requirements and product development Material strengthening of capital levels within the last years, additional merger benefits expected Sound asset quality supported by positive economic environment in Germany and further downsizing of high-risk portfolios Earnings situation volatile, lower profit trend for due to non-recurring positive effects in recent years, low interest environment and merger costs Sound funding and liquidity profile AA- / stable 1 Aa3 / positive Strengthened capitalisation due to earnings retention and capital measures After exceptionally high earnings from 2013 to 2015 a decline in performance is expected primarily driven by the current low-rate environment Resilient asset quality due to strong German economy Stable access to funding sources Merger was moderately capital-accretive, completion of integration by end-2018 realistic AA- / stable 1 1 Rating of the cooperative financial network Page 25

26 3. DZ BANK s business performance

27 Key financials of the joint central institution Key data of the joint central institution 1 Shareholders of DZ BANK AG as at Total assets approx. 500 bn in % Common equity Tier 1 capital ratio approx. 13.5% Including closing effects / fully-loaded CRR Leverage Ratio approx. 4% Including closing effects / fully-loaded CRR Profit before taxes bn Synergies m Non-recurrent cost of merger project approx m (in m) Cooperativebanks 2 Other cooperative and other companies Total share capital 4, ,658 1) Preliminary key figures, time horizon 3 years; 2) DZ BANK shares held directly and not directly by cooperative banks Page 27

28 DZ BANK s business performance (before merger) 2015 Key data DZ BANK Group Shareholder structure Profit before taxes (in m) 2,453 2,867 (in %) Cost-income ratio (in %) Total assets (in bn) Common equity Tier 1 capital ratio 2 (in %) Leverage ratio (in %) Dividend 3 (in m) Employees thereof DZ BANK AG 31,130 4,489 30,781 4,389 (in m) Local cooperative banks 1 WGZ BANK AG Other cooperative enterprises Others Total share capital , ,646 1) Direct and Indirect; 2) Including closing effects, fully-loaded CRR; 3) Dividends paid in following year Page 28

29 WGZ BANK s business performance in 2015 Key data of the WGZ BANK Group Shareholder structure Profit before taxes (in m) (in %) Cost-income ratio (in %) Total assets (in bn) Common equity Tier 1 capital ratio 2 (in %) Leverage ratio 4 (in %) Dividend 3 (in m) Employees thereof WGZ BANK AG 1,764 1,343 1,649 1,292 (in m) WGZ Beteiligungs GmbH & Co. KG1 Member institutes of the regional financial network Other shareholders Total share capital ) Wholly-owned (100%) by the member institutes of the regional cooperative financial network; 2) Including closing effects, fully-loaded CRR; 3) Dividends paid in the following year; 4) Subject to transitional rules of the CRR Page 29

30 DZ BANK Group and WGZ BANK Group: Income Statement (IFRS) in million DZ BANK Group Changes in % WGZ BANK Group Changes in % Net interest income 2,988 3, Allowances for losses on loans and advances >100.0 Net fee and commission income 1,514 1, Gains and losses on trading activities Gains and losses on investments Other gains and losses on valuation of financial instruments Net income from insurance activities Administrative expenses 1) -3,198-3, Other net operating income >100.0 Profit before taxes and bank levy 2,507 2, n.a. n.a. n.a. Bank levy n.a. n.a. n.a. Profit before taxes 2,453 2, Income taxes Net profit 1,796 2, ) DZ BANK Group: Prior year figure adjusted Page 30 1) Bei DZ BANK Gruppe Vorjahr angepasst

31 4. Future and Sustainability

32 Mega trends from digitization pick up on our cooperative idea Membership Achieving more together Crowd funding Promotion of members Community Helping others to help themselves Strong as a group Social network Social sharing Regional orientation Success through closeness Social responsibility Commitment Page 32 Financial contributions to community projects Advisory platforms Social trading

33 How the DZ BANK Group s innovation activities intermesh with the cooperative financial network Volksbanken Raiffeisenbanken cooperative financial network DZ BANK AG s business divisions and group companies DZ BANK Group Business evaluation Financial technology Technology management Innovation roadmap Early phase ideas testing Investment management Trend radar Hackathons Trend evaluation Founder network Ideas management DZ BANK Innovation Lab Design thinking Innovation and digitization in the DZ BANK Group Round table innovation Resource management Joint ventures Project portfolio Investment platforms FinTechs Disruptive business models Start-up investment Page 33

34 Taking responsibility together DZ BANK s sustainability ratings DZ BANK s sustainability ratings: Prime Status C+ Since2015 IndustryLeader in Financials/ Public & Regional Banks Since 2011 Prime Status above-average commitment to environmental and social issues DZ BANK AG s sustainability ratings positive / neutral Excellent AA rating AA Far above the sector average 67 points Outperformer in the areas governance and social (56 of 384 in Industry Banks ) Best in the sector in the CRI of the Bertelsmann Foundation among the leading companies in the integration of CR measures in business processes Ratings regarding to DZ BANK before merger Page 34

35 Disclaimer This document is for information purposes only. This document has been prepared by DZ BANK AG Deutsche Zentral-Genossenschaftsbank( DZ BANK ) and may only be distributed outside Germany in accordance with the local legal requirements, and persons coming into possession of this information and these materials should inform themselves about and observe the local legal requirements. This document constitutes neither a public offer nor a solicitation of an offer for the purchase of securities or financial instruments. DZ BANK does not act as investment adviser or portfolio manager. This document does not constitute a financial analysis. All evaluations, opinions or explanations contained herein are those of the author of the document and do not necessarily correspond with those of third parties. DZ BANK assumes no liability for damages caused directly or indirectly by the distribution and/or use of this document and/orfor damages which are in any way connected with the distribution/use of this document. Any investment decision with respect to securities or any other financial instruments should be based on an individual advice and a prospectus or information memoranda and under no circumstances on this document. The contents of this document correspond to the status at the point in time at which the document was drafted. Future developments may render them obsolete without the document s having been changed accordingly. Page 35