DZ BANK Group. Financial Press. DZ BANK Group Financial Press Conference February 2008

Transcription

1 DZ BANK Group DZ BANK Group Financial Press 28

2 1 Overview Earnings trend 3 Asset Quality and Liquidity 4 Growth Initiatives 2

3 1 Overview Earnings forecast of a good EUR 1bn confirmed Profit before tax: EUR 1.1bn Sharp rise in net interest (+ 6 %) and commission income (+ 22 %) primarily driven by retail banking activities Marked reduction in loan-loss provisions (- 38 %) Increased cooperative-sector benefit Top-quality ABS portfolio 94 % AAA and AA-rated US subprime exposure: EUR 2.9bn 99 % AAA and A-rated Fair valuation Comfortable liquidity situation Growth initiatives for 2008 have started 3

4 1 Overview Innovative products and high quality services again confirm DZ BANK Group's outstanding market position Market Position Leasing 1 Asset Management: Investment Funds 2 Asset Management: Certificates 3 Consumer Credits 4 Savings Bank 5 Life Insurance VR LEASING: successful expansion in Eastern Europe Union Investment: market leader for pension/old-age provision products Akzent Invest: market leader for guarantee certificates in the shortest possible space of time Bausparkasse Schwäbisch Hall: market lead extended further R+V Versicherung: No. 1 for German pension funds new business (product leasing), 2 assets under management in mutual trusts (incl. property funds), 3 Market share guarantee certificates, 4 credit volume, 5 new business 4

5 1 Overview DZ BANK Group: strong market position in transaction banking in Germany and Europe Market position in Germany Position Securities Clearing* Credit Processing Issuing of Cards/ Settlements** Payment Transactions*** Merger of dwp and txb (March 2007) Merger of Transaktionsinstitut and Interpay (Sept. 2006) * no. of custody accounts ** no. of credit cards for which clearing transactions are carried out *** no. of securities accounts 5

6 1 Overview DZ BANK Group Profit before tax excluding valuation write-downs up on the previous year EUR bn Transition ,9 +6.6% 2, % 1, Profit before tax, (adjusted) Income Costs Loan-loss provisions 2007 Profit bef. tax excl. val. write-downs Losses realised on securities Writedowns on bank bonds Writedowns on ABS Bonds Other 2007 Profit bef. tax incl. valuation write-downs 6

7 1 Overview 2 Earnings trend 3 Asset Quality and Liquidity 4 Growth Initiatives 7

8 2 Earnings Trend Net interest income reflects business successes strong growth in commission income Net interest income (EUR m) Commission income (EUR m), %, DZ BANK: expansion of credit business increase in lendings to customer and increase in subsidised loans BSH: increase resulting from long-term product and finance management DVB: increase in new business VR LEASING: sharp rise in new business volume: Germany: +11%, foreign countries: +26% +21.6% DZ BANK: increase in securities brokerage business Union Investment: Rrise in assets under management as well as above-average investment performance of funds managed by Union DVB: lively new business in international transport finance 8

9 2 Earnings Trend Conservative risk policy leads to reduction in loan-loss provisions Trend in loan-loss provisions (EUR m) DZ BANK: risk-aware lending Successful workout process % TeamBank: decline in loan-loss provisions despite above-market growth in easycredit portfolio

10 2 Earnings Trend Financial-market crisis hits trading and investment result Trading result (EUR m) Investment result (EUR m) 699 Trading in fixedrate securities and credit products in negative territory Write-downs among other things on ABS EUR 228m Bank bonds EUR 517m Write-downs on NATIXIS S.A. at DZ BANK AG Realised price losses from DZ BANK AG securities (available for sale)

11 2 Earnings Trend Revaluation reserve positive despite crisis in the financial market Revaluation reserve (EUR m) Effects from financial market crisis incl. EUR 223m in relation to ABS EUR 130m in relation to bank bonds 11

12 2 Earnings Trend Modest increase in administration costs reflects expansion in business activities Admin. expenses (EUR m) Cost-income ratio (%) +5.8% 2, , DZ BANK: increased operating expenditure, particularly in connection with strategic growth initiatives UMH: higher operating expenditure on the back of more careful investing in activities of the future and expansion of the back office +13.0pp pp 53.6 Adjusted for exceptional effects in operating earnings and in administration costs, CIR at 53.6% against 52.3% in DVB: increase in workforce as part of business expansion (adjusted) (adjusted) 12

13 2 Earnings Trend Allfinanz business model has proved itself Bank segment: profit before tax (EUR m) Retail segment: profit before tax (EUR m) % % (adjusted) (bereinigt) : effect from disposal of norisbank branches 13

14 2 Earnings Trend Positive performance through increase in earnings at BSH; natural catastrophes depress R+V earnings Property segment: profit before tax (EUR m) Insurance segment: profit before tax (EUR m) -10.7% +36.1% 14

15 2 Earnings Trend DZ BANK AG: 4.6% increase in operating earnings before special items DZ BANK AG: profit before tax EUR m as per IFRS 2007 Special items +771 Profit bef. tax 2007 excl. special items VR LEASING tax effect DG HYP Natixis Repositioning of Private Banking activities Valuation write-offs after capital market crisis Profit bef. tax 2007 incl. special items 15

16 2 Earnings Trend Bonuses up on the back of successes with sales Commission payments and bonuses DZ BANK Group (EUR m) CAGR % Commission payments and bonuses to local cooperative banks: Increase of EUR 88 m in 2007 (preliminary) Further growth expected in future Dividend payments DZ BANK AG (EUR m) Dividend payment: proposed dividend: in line with last year CAGR +23.8%

17 1 Overview 2 Earnings Trend 3 Asset Quality and Liquidity 4 Growth Initiatives 17

18 3 Asset Quality and Liquidity ABS Portfolio only small subprime involvement US subprime as percentage of ABS portfolio Total ABS portfolio: EUR 2.9bn AA+ 26% AA 10% Sonstige 1% EUR 26.0bn Total US exposure EUR 6.6bn - of which US subprime EUR 2.9bn 99 % of subprime involvement is AAA or AA-rated AAA 63% 18

19 3 Asset Quality and Liquidity Comfortable liquidity situation allows us to hold the securities Money-market liabilities by market (DZ BANK AG) 31 December % 32% 15% EUR bn 19% Cooperative banks Interbank deposits Secured refinancing Companies and non-banks Commercial paper/ certificates of deposits 28% Short refinancing based on suitably broad diversification in terms of region, investors, markets products and maturities Deposits from local cooperative banks form an important and stable source of refinancing 19

20 1 Overview 2 Earnings Trend 3 Asset Quality and Liquidity 4 Growth Initiatives 20

21 4 Growth Initiatives Focus in 2008 will be firmly on strengthening the cooperative financial services network Aim To strengthen the cooperative financial services network Details Stabilisation and increase in earnings in German retail banking business Tapping into potential offered by existing customer relationships Targeted approach of highearning customers and market segments (e.g. wealthy connurbations) Focus on old-age provision Initiatives in 2008 focus on the cooperative financial services network (1) Developing the market in big connurbations (2) Allfinanz planning dialogue (3) Akzent Invest (4) Old-age provision (5) Expansion of private banking (6) Expansion of property financing 21

22 4 Growth Initiatives New direction for Private Banking Fragmented Structure Private banking potential of 1.5m customers among the local cooperative banks 30m customers. Private Banking promises high growth rates in the long term. Bundling of resources Greater dovetailing of activities within the DZ BANK Group and with the activities of the local cooperative banks. In future, services, production and marketing will be coordinated and controlled from one newly created company DZ Private Wealth Managementgesellschaft S.A., which will have its head office in Luxemburg. Intensification of marketing activities planned for

23 4 Growth Initiatives Top accolades once again for our Equity Research team 1 st place Best DAX recommendations Best Tec DAX recommendations 3 rd place Best M-Dax recommendations 1 st place Best DAX recommendations 3 rd place Best recommendations and earnings forecasts for SDAX stocks place Best profit forecasts for large caps Best profit forecasts for small/mid caps 2 nd place Best analyses/best sector team 23

24 4 Growth Initiatives Competency centres will be formed in property financing Property financing: working together within the cooperative financial services network Private property financing Commercial property financing Focus on core competencies and creation of competency centres within the cooperative financial services network ( bundling of resources ) 1 2 Private property financing competency centre 3 Processing Credit and mortgage processing competency centre DG HYP Commercial property financing competency centre Close cooperation between individual competency centres will lead to a win-win situation Creation of an attractive service portfolios and cheaper cost structures to support the local cooperative banks 24

25 4 Growth Initiatives At the same time, we will systematically expand our activities in Corporate & Investment Banking Aim Details Initiatives in 2008 To expand Corporate & Investment Banking Systematic strategic orientation of business model in order to react in time to changes in the market Development of new sales resources to achieve a more intense market development and expansion of market position Improved tapping of potential in Corporate and Investment Banking Complementary further development of international activities (1) Investment Banking growth initiative (2) Tapping into corporate-client potential of the local cooperative banks (3) Expansion of business with institutional clients (4) Development of platforms outside cooperative financial services network (5) Market development in Northern Italy (6) Market development in Asia 25

26 4 Growth Initiatives 26