IFRS consolidated group H interim results HSH NORDBANK AG HAMBURG 31 AUGUST 2012

Transcription

1 IFRS consolidated group H interim results HSH NORDBANK AG HAMBURG 31 AUGUST 2012

2 Agenda 1. Key financial data H Appendix

3 Key financials at a glance EUR m H H % Net interestandcommission income Loanlossprovisions >100 Net income before restructuring Net income after taxes Jun Dec2011 % Total assets(eur bn) Tier-1 capitalratio 1 (in%) 12,7 13,8-1.1PP Employees(FTE) 3,436 3, incl. market risk positions; after adoption of interim results

4 New business well above previous year client business in core bank new business EUR bn Real estate clients New businessat2.9 bneur almost doubled over year ago Impact on earnings will accrue over time Corporate and Private clients Energy & Infrastructure Shipping H H

5 New business 2012: attractive transactions across multiple business lines Oiltanking Finance B.V. / M&B AG DIC Gewerbeimmobilien Portfolio Solar Park Briest Nordex SE Hamburg Schuldscheindarlehen Joint Lead Arranger 2012 HSH Nordbank Hamburg Portfoliofinanzierung Arranger 2012 HSH Nordbank Hamburg /Brandenburg Project Finance Joint MLA 2012 HSH Nordbank Hamburg Syndicated Multicurrency LG & Credit Facility 2012 HSH Nordbank HGV Deutsche Wohnen AG Wohnportfolio Windportfolio Hurrikan PSA Gruppe Averhoff Park Hamburg Schuldscheindarlehen Joint Lead Arranger 2012 HSH Nordbank Kiel/Lübeck Portfoliofinanzierung Arranger 2012 HSH Nordbank Portfoliofinanzierung (Turbinen aus norddt. Fertigung) Arranger 2012 HSH Nordbank Hamburg Bauträgermaßnahme Lead Arranger 2012 HSH Nordbank HALBJAHRES-PRESSEKONFERENZ

6 Low interest rate environment and portfolio wind-down reduce net interest and commission income net interest income EUR m net commission income EUR m H H H H Net interest income down due to lower average lending volume despite increased lending spreads Wind down of non-strategic portfolios and sale of equity investments contribute less Prevailing low interest rate environment and subdued client activities in securities cause net commission income to fall

7 Valuation losses impacting net trading result net trading income EUR m H H years Euro-Dollar Basisswap-Spread Basispoints spread tightening leads to valuation losses Jan Feb Mrz Apr Mai Jun Jul Aug Net trading income largely driven by valuation losses from EUR/USD-basis swaps; massive spread tightening in H Negative impact also from DFV valuation of own liabilities Positive valuation gains from credit investment portfolio Genuine trading result from, e.g., cross selling margins from client flows well positive

8 Financial investmentsdistinctlypositive net income from financial investments EUR m exposure to selected euro zone sovereigns EUR m IFRS bookvalue EUR m Portugal Ireland 0 0 Italy H H Greece Spain Total 1,005 1,055 Profits from the sale of equity investments Positive valuation effects from credit investment portfolio Hardly any bookvaluelosses in sovereign debt instruments, but additions to portfolio impairments due to sovereign debt crisis Bookvalue reduction on Greek govt. bonds due to exchange in EU-bonds

9 Riskshield lowers loan loss provisions no actual payments from guarantors loan loss provisions EUR m accumulated risk provisions EUR m 10, * Second loss guarantee 7,000 5,045 Gross insurance effect of the guarantee loan loss provisions guarantee effect net loan loss provisions First loss piece 3,200 1,955 Remaining buffer under the first loss piece: approx. 3 bneur 2, ActuallossesaccruedsinceApril 2009: -233 m EUR In linewitha highlyconservativepolicy-457 m EUR riskprovisionshavebeenbuiltin H Most ofthemapplytoshippingassetsin therestructuringunit Net oftheadditional premiumof84 m EUR (asrequiredbytheeu) thehedgingeffectoftheguarantee totals346 m EUR Net resultfromllp in thep&l statementis-111 m EUR Onlyifandwhenrealisedlossesexceedthe3.2 bneur thresholda claimwill befiledundertheguarantee *i.e. 27 EUR m LLP on portfolionot coveredbytheguarantee, and84 EUR m additional premium

10 Lower expenses for public sector guarantees public sector guarantees outstanding EUR bn cost of guarantees EUR m SoFFin-gtee. Second loss gtee H H Second loss guarantee SoFFin-guarantee Since the beginning of the restructuring over 2.0 bneur have been paid for public sector guarantees (of which more than 1.7 bn EUR were paid to Hamburg and Schleswig-Holstein) Last outstanding SoFFin-guaranteed bond fully redeemed on 23 June,

11 Stable funding sources long-term funding capital markets EUR bn senior unsecured and pfandbrief distribution by maturities 1-3 years 22% Pfandbrief 7 years 14% Senior Unsecured 4-6 years 64% 2011 H Plan 2012 Successful issuance of two mortgage pfandbriefsof 500 m euro each with 4 and 5 year maturities Broad access to savings bank funding, particularly to retail clients throughout Germany Half-year issuance plan exceeded Over three quarters of funding raised in long maturities Client deposits increased significantly

12 Costs have been going down operating results* EUR m personnel expenses EUR m administrative expenses* EUR m H H H H H H H1 H1 H excluding** excluding** excluding** Cost cutting measures are progressing Excluding newly consolidated group companies, administrative expenses came down 22 m EUR * incl. depreciation on tangible and intagible assets 35 EUR m (18) ** 44 in 2001 newly consolidated group companies

13 Personnel reduction continued employees in Germany (FTE) employees total group (FTE) 3,244 3,055 2,614 3,684 3, H H excluding* 2,983 employees abroad (FTE) H H excluding* 2011 H H excluding* * 44 in 2001 newly consolidated group companies

14 Group income statement EUR m Jan June 2012 Jan June 2011* Net interest income Net commission income Result from hedging 9-10 >100 Net trading income >-100 Net income from financial investments Net income from at-equity investments Total income Loan loss provisions >100 Administrative expenses Other operating result >100 Net income before restructuring Result from restructuring >-100 Expenses for government guarantees Net income before taxes Income tax >-100 Group net result % EUR bn Total assets * After adjustments

15 Weakening economic environment puts pressure on capital ratios total assets EUR bn tier-1 capital ratio in % with hybrid tier-1instruments* without hybrid tier-1 instruments(common Equity Ratio) Effects from weakening economic environment in general and shipping crisis in particular could not be fully mitigated by: Re-injection of 500 m EUR fresh capital in Q (extraordinary payment to guarantors in 2011) Gain from buy-back of subordinated capital which strengthened core equity tier-1 capital Wind down of non strategic portfolios * incl. market risk positions, and after adoption of financial statements and quarterly results respectively

16 Outlook Economic environment Weakening economic growth worldwide: in part recession (eurozone), in part less dynamic growth (USA, Asia, China in particular) Continuing austerity measures and increasing unemployment dampen consumption and capital investments in eurozone Lower trade volumes between Europe and Asia Economic trends in Germany visibly better than in rest of Europe Shipping markets No rapid improvement expected in shipping markets: trough of the cycle to be reached not before months Lasting pressure on ship prices, freight rates, and time charter rates High oil prices and weak euro add to market difficulties Slow recovery of the shipping industry not expected to begin before end of 2013 Financial markets and banking industry Euro government debt crisis may continue and lead to further EUR/ USD volatility Continuously high volatility on international capital markets Low interest rate environment and quantitative easing expected to last for a while Regulatory environment impacted from uncertainty

17 Focus 2012 Proactive management of balance sheet total and risk-weighted assets Examine further measures to curb the effects of the crisis Intensive portfolio management of loan business, in particular as to the restructuring of shipping and real estate loans Further diversification of our funding basis Limit the impact of the uncertainties to face on our net result

18 Agenda 1. Key financial Data H Appendix

19 Segment Corporate and Private Clients Shipping Massive price undercutting among liner operators in container shipping came to a halt in early Average freight rates are back to levels covering the massive fuel cost increases. Shanghai Containerized Freight Index rose by 49% from February to June, albeit from a low level. Growing oversupply in bulkshipmarket exerts pressure on charter rates. Tanker market suffering from low demand in oil products; growth rate< 1% (International Energy Agency). But demolitions outpace new order volumes for seven month in a row now. High cost for bunker fuel squeeze profitability; overcapacities will not be solved in Loan loss provisions for shipping loans expected to rise further. New business selectively written with international clients and in the off-shore segment. EUR m H H Total income Loan loss provisions Administrative expenses Other operating result 2 2 Net income before restructuring Segment assets(eur bn) 19 19* * As at 12/31/2011 Portfolio by type of ship(ead) Other ship types 10% Offshore 5% Tanker 15% Other** 10% Bulker 18% Container 42% * * guarantees, working capital and other financings not secured by underlying asset

20 Segment Corporate and Private Clients Corporate / Private Banking While eurozonegdp in 2012 is expected to fall below previous year, Germany should perform better. The ifo-business climate index for medium sized companies came somewhat down lately but still remains on a relatively high level. New business written with corporate clients almost doubled compared to last year. Competition for well-rated clients still very strong; as a consequence margins continue to be under pressure. Our focus in 2012 is on export-oriented industries, thereby leveraging business potential in global trade finance and structured finance. Demand from our private banking clients centered around value preservation and short term investments. EUR m H H Total income Loan loss provisions -6 - Administrative expenses Other operating result 4-1 Net income before restructuring Portfolio by industry(ead) Logistics Energy/ 5% Utilities 7% Services 8% Other** 5% Industrial 23% Segment assets(eur bn) 9 9* * As at 12/31/2011 Food & Beverage 14% Healthcare 19% Trading 18% * * guarantees, working capital and other financings not secured by underlying asset

21 Segment Corporate and Private Clients Real Estate Clients German real estate markets benefited from the relatively robust state of the domestic economy. Retail and office space increasingly in demand by investors; residential portfolios continue to enjoy strong demand. New business with real estate clients more than tripled; however, profits will accrue over time only. Rents for retail space stabilized on a high level, strong increases seen in residential in metropolitan regions. Reversal of loan loss provisions in H compared to additions last year. Portfolio by region (EAD) EUR m H H Total income Loan loss provisions 5-54 Administrative expenses Other operating result 1-1 Net income before restructuring 52-1 Segment assets(eur bn) 10 10* * As at 12/31/2011 Other Europe 3% Scandinavia 2% France 4% Netherlands 4% UK 5% Other** 17% US 8% Germany 57% * * guarantees, working capital and other financings not secured by underlying asset

22 Segment Corporate and Private Clients Energy & Infrastructure Expansion of renewable energies is progressing positive long term prospects. European sovereign debt crisis and uncertainties about future subsidies for renewables projects dampen growth. Offshore wind projects progress slowly as links to onshore power grids are lagging behind. Growth in renewable energy should provide a sustainable boost for our business over the coming years. Increasing demand for capital investments in this area leads to a well filled project pipeline. For our Infrastructure business, we expect to benefit from substantial investments in transportation infrastructure, comprising seaports and airports as well as power and gas grids. EUR m H H Total income Loan loss provisions 6-3 Administrative expenses Other operating result 4 2 Net income before restructuring Energy (EAD) Other Energy 1% Solar 42% Wind Onshore 56% Infrastructure / Rail (EAD) Rail infrastructure 16% Seaports 11% Other** 1% Airports 43% Segment assets(eur bn) 5 5* * As at 12/31/2011 Wind Offshore 2% Rail rolling stock 29% * * guarantees, working capital and other financings not secured by underlying asset

23 Segment Products, Capital Markets, Corporate Center The segment Products, Capital Markets, and Corporate Center, accounts for the development and structuring of financial products as well as relationship management with savings banks, banks, and insurance companies. The bank group position Corporate center is also accounted for in this segment. Client driven business focused on hedging solutions in volatile markets. In particular, products structured to benefit from low interest rate environment were quite in demand. Portfolio impairments on govt. bond investments reduce total income Cross-selling grew along with new business picking up. Segment earnings are predominantly booked in the client/market segments. Income from the buy-back of subordinated debt is shown under other operating result. EUR m H H Total income Loan loss provisions Administrative expenses Other operating result Net income before restructuring Segment assets(eur bn) 39 34* * As at 12/31/2011 Capital market products Income by asset classes Restructuring Unit 16% Products and Capital Markets 32% Corporate and Private Clients 52% Real Estate 5% Corporate and Private Banking 21% Shipping- 19% Energy & Infrastructure 7%

24 Restructuring Unit portfolio wind-down further progressed Real Estate markets in the UK, France, and Sweden, have stabilized in H after the rebound last year. However, increasing tensions in the eurozone surfaced again in Q2. The economic environment in Germany stays positive, whereas Denmark and the Netherlands showing no improvement. Improvements in the US market developed only slowly also in Q2; differently in various regions. A weakening world economy and tight competition in the shipping markets had the number of restructurings and loan loss provisions grow in our shipping portfolio in recent months. Segment income grew visibly on the back of successful divestments and valuation gains in our credit investment portfolio. EUR m H H Total income Loan loss provisions Administrative expenses Other operating result 10 8 Net income before restructuring Portfolio wind-down in the Restructuring Unit Total assets in EUR bn(after adjustments to previous periods) % Segment assets(eur bn) 53 58** H * *as at 12/31/

25 Group Income Statement Core Bank and Restructuring Unit EUR m CoreBank* Jan June 2012 Restructuring Unit* Jan June 2012 Net interest income Net commission income Result from hedging 9 - 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 Net income before taxes EUR bn Total assets * incl. consolidation

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