HSH Nordbank AG. Investor / Analyst Presentation Group Results H August 2010

Transcription

1 HSH Nordbank AG Investor / Analyst Presentation Group Results H August 2010

2 Agenda 1. Business Overview H Group Results IFRS H Segment Report H Outlook Page 2

3 Operating income markedly improved Risk provisions significantly lower Recovery of world economy noticable But also creeping doubts in financial markets triggered by highly indebted euro states CEBS stress test successfully passed Core Bank achieves positive net income before taxes of EUR 128m (including guarantee costs) in H Q2, first positive net income before restructuring on group level since seven quarters (EUR +60m) Risk provisioning down by 75% from last year s levels due to recovery in major market segments Total assets rose slightly due to higher USD since year-end (+1% to EUR 176bn) despite continued portfolio reduction Core capital ratio incl. market risk remains on competitive level at 9.8% Page 3

4 Agenda 1. Business Overview H Group Results IFRS H Segment Report H Outlook Page 4

5 Key figures H m H H % Total income ,229-48% Risk provisioning ,195-74% Net income before restructuring % Net income after taxes / Group net loss % 06/30/ /30/2009 Total assets ( bn) % Tier-1 capital ratio 3 9.8% 10.5% -0.7 PP Employees 4 (FTE) 3,437 3,610-5% 1) After adjustments 2) Total net interest income, net commission income, net hedging result, net trading income, net income from financial investments, and hedging result 3) Incl. market risk positions, after adoption of financial statement 2009; as of June 30th, 2010 recognition of first-loss tranche changed to deducted from equity capital 4) Excluding employees in consolidated companies acquired in bail-out purchase Page 5

6 Net interest and commission income lower due to reduced total assets Net interest income m Net commission income m % % H H H H Reduced balance sheet against the backdrop of sharpened business focus Changed interest rate environment Stronger focus on client business Reduction in business volume Selective approach to new business focused on existing clients Page 6

7 Strong US-dollar weighs on trading result Net trading income m 446 >-100% Net income from financial investments m >+100 % H H Burdened by currency conversion of loan loss provisions on balance sheet (-343 Mio. EUR) Higher counterparty risks in derivatives lead to negative valuation effect Structured positions in the Credit Investment Portfolio negatively impacted as well H H Stabilization of financial markets continued Valuation gains in Credit Investment Portfolio following downward corrections in 2009 Reduction of risk positions Page 7

8 Risk provisioning significantly lower Additions to LLP m -1, Distribution of LLP m % H H H H Economic recovery benefits major markets Portfolio reduction progressed further Potential for write-backs of portfolio LLPs selectively utilized Core Bank Restructuring Unit Page 8

9 Administrative expenses further reduced Operating expenses* m Personnel expenses m Administrative expenses* m % -12 % -8 % H H H H H H Acquisition and consolidation of company threatened by insolvency pushes personnel expenses upward by EUR 6m Number of employees (FTE) decreased from 3,610 at year-end to 3,437 (excl. employees in consolidated companies acquired in emergency bail-out) Including staff of those companies, total FTEs increased to 4,323 * Incl. depreciation on property, plant and equipment and amortization of intangible assets (H1 09: EUR 19m, H1 10: EUR 20m) Page 9

10 Operating income shows pronounced improvement Overall bank ( m) H H1 2009* Net interest income % Net commission income % Result from hedging % Net trading income >-100 % Net income from financial investments >100 % Total income 635 1, % Loan loss provisions % Administrative expenses % Other operating result >-100 % Net income before restructuring % Result from restructuring % Expenses for government guarantees >100 % Net income before taxes % Income tax >-100 % Net income after taxes / Group net loss % % 06/30/ /31/2009 Total assets ( bn) * After adjustments Page 10

11 Core Bank reaches positive net income before taxes H ( m)* Core Bank Restructuring Unit Net interest income Net commission income Result from hedging 3 - Net trading income Net income from financial investments Total income Loan loss provisions Administrative expenses Other operating result Net income before restructuring Result from restructuring Expenses for government guarantees Segment assets 06/30/2010 in ( bn) * Incl. consolidation effects Page 11

12 Agenda 1. Business Overview H Group Results IFRS H Segment Report H Outlook Page 12

13 Sector Specialist Bank Segment on recovery course positive result against backdrop of markedly reduced loan loss provisioning Pronounced recovery of major markets due to continued rebound in world trade Upswing in aviation only temporarily interrupted by volcanic ash impact Charter rates and ship valuations in container segment significantly increased from record lows Long term growth trend in renewable energy market remains stable Selective new business; prolongations and fulfillments of existing commitments dominate Noticeably lower risk provisioning; selective reversal of LLPs in Shipping portfolio in m Net interest and commission income H H Net trading income and income from financial investments Total income Loan loss provisions Net income before restructuring Page 13

14 Regional Bank Segment positive contribution despite lower interest and commission income Strong economic upswing supports domestic corporate and real estate clients Competitive pressures lower margins in corporate segment, in particular for good credits Lively demand in real estate market, top locations in retail and residential segment stable Private-Banking and Savings Bank business develops positively Client deposits increased, in particular by savings banks Interest and commission income decreased due to selective approach to new business Loan loss provisions driven by few cases in structured finance portfolio in m Net interest and commission income H H Net trading income and income from financial investments 9 12 Total income Loan loss provisions Net income before restructuring Page 14

15 Segment Other Cross-selling held back by Bank s selective approach to new business Client-driven financial markets business: Sales of Asset- and Risk Management products to support core clients segments Hedging products for interest- and currency risks meet lively client demand Sale of Cross-selling products limited by Bank s selective approach to new business Broadening of refinancing base towards institutional investors and other clients targeted; larger institutional investors still reluctant due to uncertain market environment Refinancing through savings bank association network significantly expanded Result driven by reversal of LLPs and cost reductions in m Net interest and commission income H H Net trading income and income from financial investments Total income 30 6 Loan loss provisions Net income before restructuring Page 15

16 Segment Restructuring Unit portfolio reduction continues, substantial headwinds by US-dollar valuation effects Risk provisioning substantially lower due to recovery in major markets Reversal of portfolio loan loss provisions Trading result impacted by currency conversion effect on existing loan loss provisions Income from financial investments benefits from valuation gains in Credit Investment Portfolio Active portfolio reduction continued, but partly compensated by US-dollar strength (-6.9% vs 12/31/2009; without currency effect -10.4%) Capital market portfolios actively reduced despite volatile and challenging market environment Exit of loan portfolios dependent on asset class further pursued in m Net interest and commission income H H Net trading income and income from financial investments Total income Loan loss provisions Net income before restructuring Page 16

17 Agenda 1. Business Overview H Group Results IFRS H Segment Report H Outlook Page 17

18 Further stabilization of client portfolios and improvement of results expected Recovery momentum in global economy to slow in H2 Rebound in major client markets continues at reduced pace Focus on risk management and selective new business Pace of risk provisioning expected to decrease further Provided the stabilization of EUR remains intact, no renewed negative impact by US-dollar appreciation expected Positive results of CEBS stress tests should provide tailwind for refinancing activities going forward EU state aid proceedings approaching finalization shortly; major expected conditions set by European Commission to large extent already implemented Page 18

19 Disclaimer The information presented here is not an offer for sale within the United States of any security of HSH Nordbank AG. Securities of HSH Nordbank AG may not be offered or sold in the United States absent registration under U.S. securities laws or unless exempt from registration under such laws. Information and opinions contained herein have been compiled or arrived at from sources believed to be reliable, any statements about the Bank s market position are based on HSH Nordbank s own estimates, unless otherwise stated. HSH Nordbank AG makes no representation as to the accuracy or completeness of any of the information contained in these documents and accepts no liability for loss arising from the use of the information provided. This document is not to be relied upon as such or used in substitution for the exercise of independent judgment. Any opinions expressed herein reflect a judgment at the date of presentation and are subject to change without notice. Attendees at this presentation must be aware that the information provided may be dated and not current information. This document has been prepared separately from any proposed offering of any security and as such information in this document must not be relied upon as having been authorized or approved by the issuer of such security. The decision to purchase any security should be made only on the basis of the information memorandum made available at the time of the issue of such security. This presentation contains forward-looking statements. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that HSH Nordbank AG s actual financial condition, results of operations and cash flows, and the development of the industry and markets in which HSH Nordbank AG operates, may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. This information presented may not be passed on, or reproduced in whole or in part under any circumstances without express written consent from HSH Nordbank AG. HSH Nordbank AG is not responsible for the lawfulness of the acquisition of any security by a prospective investor or for compliance by that prospective purchaser with any law, regulation or policy applicable to it. A prospective investor may not rely on this presentation when making determinations in relation to these matters. Neither this presentation, any documentation provided herewith nor any presentation thereof may be sent or taken or transmitted into the United States or distributed, directly or indirectly, in the United States or to any U.S. person (within the meaning of Regulation S under the U.S. Securities Act of 1933, as amended) except to a limited number of Qualified Institutional Buyers as defined in rule 144A under the U.S. Securities Act of 1933, as amended. This presentation may not be reproduced or distributed to any other person. Any failure to comply with this restriction may constitute a violation of U.S. securities laws. This presentation does not constitute an offer to sell, or a solicitation of9/7/2010 an offer to purchase, any security. Neither this presentation nor any copy hereof may be distributed in any jurisdiction where its distribution may be restricted by law. Persons who receive this report should make themselves aware of and adhere to any such restrictions. Page 19

20 Contact Günter Femers Head of Investor Relations / Rating Tel: +49 (0) Fax:+49 (0) guenter.femers@hsh-nordbank.com HSH Nordbank AG Gerhart-Hauptmann-Platz Hamburg Page 20