Financial Press Conference. Frankfurt am Main, 2 March 2011

Transcription

1 Financial Press Conference Frankfurt am Main, 2 March 2011

2 DZ BANK Financial Press Conference, 2. March 2011 Page 2 DZ BANK Group Key points 2010 The year 2010: Economic growth, sovereign debt crisis, regulatory situation Good business performance: profit before tax: EUR million (EUR 836 million previous year) Strengthening of the capital base: tier 1 ratio as at : 10.6% (9.9% previous year)* Cooperative banks: further expansion of successful cooperation Strategic foundations: DZ BANK as a "financial services group focused on the cooperative financial network" Strategic thrusts: growth geared to the cooperative financial network, a sharper focus, networking Outlook: Well positioned for success in a challenging environment *Year-earlier figures include effect of BVR guarantee

3 2010: Unexpectedly strong economic growth Consensus estimates for 2010 DZ BANK Financial Press Conference, 2. March 2011 Page Q1 09 Q2 09 Q3 09 Q4 10 Q1 10 Q2 10 Q3 10 Q4 10 Germany EMU

4 DZ BANK Financial Press Conference, 2. March 2011 Page : The end of nine years of deceptive calm Bund spreads of selected EMU government bonds* 1,000 Accession GR Introduction of EMU *with 10-year maturity E I IRL PT GR

5 2010: The beginning of a decade of regulation DZ BANK Financial Press Conference, 2. March 2011 Page 5 Focal points Equity/ Liquidity Systemic risks/regulatory authority Management/ remuneration Customer and trading business Accounting Leverage ratio Projects Basel III G20/ Basel: SIFIs Bank Reorganization Act European Banking Authority/European Systemic Risk Board MaRisk Bank Remuneration Order CRD III / Market price risks BilMoG Reform discussion IAS 39/ IFRS 9 Basel III / Leverage Ratio Challenges Systematic reduction of the profitability of banks Optimisation of capital and liquidity resources Aggressive competition for refinancing sources / deposits Management of the complexity and interdependences of the accounting rules Assurance of crisis-proof mechanisms in the cooperative financial network (capital fungibility, deposits in the cooperative financial network)

6 DZ BANK Financial Press Conference, 2. March 2011 Page 6 DZ BANK AG: Excellent operating performance Segmental performance Corporate clients Private clients Corporate customer business: number of new loan applications in the SME loan business up 17% Growth of 46.9% in new loan volume in the development loan business Expansion of advisory capacity in the Agriculture, Nature and Energy segment Structured investment products: market share in guarantee certificates held steady at 43.4% * DZ BANK wins again several awards in 2010 *Deutscher Derivate Verband 09/2010 Capital market business Advisory services and a range of products and services tailored to requirements for all customer groups have been expanded Position as lead-manager for bonds denominated in euro improved further thanks to considerable placement clout Transaction Banking Successful conclusion of GenoSysWP (securities front-to-end processes on a future-oriented and scalable platform) Expansion of supply/disposal offering for notes and coins

7 DZ BANK Group: Market position extended Performance by subsidiary (I/II) DZ BANK Financial Press Conference, 2. March 2011 Page 7 New home loans business posts double-digit growth in 2010 : 902,000 home loans and savings accounts with total volume of 28.7bn / +13.6% y/y Building finance operations : 10.8bn / +9.1% y/y R+V group's gross premiums booked (IFRS) grow by 5.5% to 11.1bn Life/pension insurer stable at record level Property/casualty grows 6% and outstrips the market Health insurance premiums up significantly by around 14% Assets under management +7.1% to 177.4bn Market leader in asset class of capital-preservation funds and in fund-based Riester solutions New business with institutional customers increases to record level (+36.1% y/y to 11.3bn) easycredit portfolio increases more than sector average in 2010, up 10% to 6.2bn Customer count up to 521,000 ( : 496,000)

8 DZ BANK Group: Market position extended Performance by subsidiary (II/II) DZ BANK Financial Press Conference, 2. March 2011 Page 8 Volume of new loan business (in Germany and abroad) only dominated by the recovery of the leasing market as of mid-2010 (as at : -15.5% to 2.9bn) Earnings strategy and focus on credit quality still have high priority Increase in AuM : + 0.4bn to 10.5bn Fund volume/investment fund business : bn to 46.2bn FX loans/luxcredit: + 1.4bn to 6.5bn Takeover of private banking business of UniCredit Luxembourg New lendings increase in real estate loans business in 2010 by +10.5% to 4.6bn Volume of joint business with the local cooperative banks increases +53.9% to 1.1bn Global freight and passenger traffic picks up appreciably in all segments of the transport industry from the middle of year onwards New loan extensions in Transport Finance increase in first 9 months of 2010 to 3.0bn vs. 2.0bn in the reference period

9 DZ BANK Financial Press Conference, 2. March 2011 Page 9 DZ BANK Group: Commission payments reached an all-time-high Commissions and bonuses (in EUR m) 1, , , ,7 19 1,6 14 1,7 7 0 Successful new business at all group companies is reflected in 10% higher commissions and bonuses 1,4 10 1, ,

10 DZ BANK Financial Press Conference, 2. March 2011 Page 10 DZ BANK Group: Excellent result Preliminary figures for 2010 in EUR m Changes in % Net interest income 2,732 2, Impairment losses on loans and advances Net commission income 1, Gains and losses on trading activities 1,015 1, Gains and losses on investments Other gains and losses on measurement of financial instruments >100.0 Gains and losses from insurance business Administrative expenses -2,588-2, Other net operating income >100.0 Profit before taxes 1, Income taxes Net profit 1, > 100.0

11 DZ BANK Financial Press Conference, 2. March 2011 Page 11 DZ BANK Group: Net interest income and risk provisioning Preliminary figures 2010 Net interest income (in EUR m) Impairment losses on loans and advances (in EUR m) DZ BANK AG DZ BANK Group 2, % 2,732 Increased revenues from lending and securities operations TeamBank Higher net interest income from greatly increased consumer finance portfolio -62.2% Risk provisioning well below the previous year Aftermath of the global economic and financial markets crisis was not as great as had been expected

12 DZ BANK Financial Press Conference, 2. March 2011 Page 12 DZ BANK Group: Net commission and trading activities Preliminary figures 2010 Net commission income (in EUR m) Gains and losses on trading activities (in EUR m) DZ BANK AG DZ BANK AG % Improved earnings in lending business Union Investment Increased average volume of assets under management and resultant revenues % Good performance in customer-oriented capital market business

13 DZ BANK Financial Press Conference, 2. March 2011 Page 13 DZ BANK Group: Financial investments and administrative expenses: Preliminary figures 2010 Gains and losses on investments (in EUR m) Administrative expenses (in m EUR) % DZ BANK Group Impairments on ABS portfolio Provisioning made for latent credit securitisation risks 2, , % 2, ,378 DZ BANK Group Cost-income ratio: 58% DZ PRIVATBANK Group Costs incurred due to the Private Banking market initiative ,050 1, Union Investment HR costs up due to increased headcount Non-staff costs Personnel expenses Write-downs

14 DZ BANK Group: Strengthened capital base Key capital ratios and RWA DZ BANK Financial Press Conference, 2. March 2011 Page 14 Key capital ratios (in %) Risk Weighted Assets (in EUR bn) Tier pp Capital situation stabilised significantly since beginning of 2009 Increased capital ratios in 2010 despite return of BVR guarantee % RWA reduced due especially to strict capital management and curtailment of supplementary activities Tier 1 ratio Total capital ratio

15 DZ BANK Financial Press Conference, 2. March 2011 Page 15 Basel III: manageable under own steam Regulatory challenges DZ BANK Group s capital ratios ( in %) Tier 1 capital ratio Hybrid tier 1 capital components 7.7 Tier 1 capital ex hybrid components DZ BANK tier 1 capital ratio of 10.6% or 7.7% without hybrid component Ramp-up curve of requirements on core tier 1 capital ratio under Basel III 2013: 3.5% 2019: 4.5% plus 2.5% capital conservation buffer Future regulatory pressures Capital backing for market price risks Eligibility of hybrid components Capital withdrawals Opposite effects Retained earnings Reduction of capital strains from rundown portfolios Focusing measures The DZ BANK Group will be able to master Basel III requirements under its own steam.

16 DZ BANK Financial Press Conference, 2. March 2011 Page 16 Profile as network focussed central bank/bancassurance has been sharpened by three strategic thrusts 1. Network related growth Exhaust potential in core activities, especially in private and corporate banking Reap potential revenues within the DZ BANK Group Network related market initiatives 2. Maintaining the focus on core activities Management of scarce resources Dealing with new regulatory requirements Review activities not related to cooperative financial network 3. Strong integration of DZ BANK Group within the cooperative financial network Further development of corporate governance in the DZ BANK Group Intensification of cooperation with WGZ BANK Orientation of DZ BANK to cooperative financial network as permanent mandate

17 DZ BANK Financial Press Conference, 2. March 2011 Page Network-related growth Private clients Market shares increased in all product groups DZ PRIVATBANK offices opened in Hannover, Munich and Stuttgart on An external private banking portfolio bought from UniCredit Private banking activities pooled with WGZ BANK Corporate clients Potential reaped among existing and new SME customers Positive development as to customer count (+17% vs. previous year) and volume of business (+35%) in joint lending operations Intensive work done on developing the business segment Capital Market Business Firming of leading position in bonds, structured capital markets products and issues Market leadership in guarantee certificates (AKZENT Invest) Further development of product portfolio (e.g. commodities, FX) Transaction Banking Migration to new securities settlement platform is complete (GenoSysWP) Bulk payments business increases to over 4 billion transactions in 2010 New notes and coins logistics offering, card payments and invoicing system for local cooperative banks Acquisition of Montrada by Equens

18 DZ BANK Financial Press Conference, 2. March 2011 Page Maintaining the focus on core activities Total assets DZ BANK AG (local GAAP in EUR bn) Total assets DZ BANK Group (IFRS in EUR bn) Reduction of activities not related to the cooperative financial network Reduction of securities portfolio * Reduction of international activities Simultaneous expansion of cooperative financial network business and internal financing within the group Additional measures: reduction of personnel and non-staff costs DG HYP: Concentration on domestic commercial property financing * Total assets as at after BilMoG conversion (increased vs. local GAAP old version as at by ca. EUR 8bn)

19 DZ BANK Financial Press Conference, 2. March 2011 Page Strong integration of DZ BANK Group within the cooperative financial network Cooperation with WGZ BANK Private Banking VR corporate advisory GenoSys WP GENO-SAVE (reporting tool for securities) Card business (including V PAY) International payments Platform for documentary credit business Establishment of Financial Services Advisory Council Closer involvement of the cooperative banks in the development and implementation of product and distribution strategies Provider of advice and stimuli Multiplicator and network function Strengthening of cooperative identity Representative composition Exemplary topics: social media etc. VR-Circle Service companies

20 DZ BANK Financial Press Conference, 2. March 2011 Page 20 DZ BANK AG / Group: Social responsibility HR management Certified as top employer 2010 (New) approaches to training the next generation of bankers berufundfamilie certificate awarded for family-friendly HR policy R+V receives InnoWard for exemplary training initiatives TeamBank distinguished as top employer for women Social commitment Improvement of the DZ BANK Group s sustainability rating from D+ to C- (Oekom) Roadmap for Home Loan Savers Bausparkasse Schwäbisch Hall is the first building society to produce a product information leaflet for its customers TeamBank sets up trust for the prevention of excessive debt

21 DZ BANK Financial Press Conference, 2. March 2011 Page 21 Summary DZ BANK Group well positioned for a challenging year 2011 Ongoing good operating performance Stable strategic foundations Capital resources strengthened under our own steam

22 DZ BANK Financial Press Conference, 2. March 2011 Page 22 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/or for 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.