Capital Market Press Conference 2013 / Frankfurt, 5 December 2013

Transcription

1 Capital Market Press Conference 2013 / 2014 Frankfurt, 5 December 2013

2 Key financial figures of KfW Group (IFRS) 2013: Solid business performance, decreasing profit, very sound capital basis /2013 Business activities (in EUR bn) for the period Promotional business volume Income statement key figures (in EUR mn) for the period Operating result before valuation (before interest rate reductions) 2,426 2,781 1,792 Operating result before valuation 1,869 2,246 1,369 Consolidated profit 2,068 2, Consolidated profit before IFRS effects from hedging 1,900 2, Balance sheet (in EUR bn) at the end of the period Total assets Equity Volume of business Key regulatory figures (in %)* at the end of the period Tier 1 capital ratio 15.4% 18.2% 20.6% Total capital ratio 17.8% 20.6% 23.2% *Calculated voluntarily for internal purposes on the basis of relevant legal regulations 2

3 KfW s funding highlights 2013 AAA Top credit rating Aaa Excellent ESG rating Awards Most Impressive Funding Team in its Sector AAA out of out of Among the top out of 127 Kangaroo Bond of the Year 2013 Lower funding needs: EUR 65.2bn ytd vs. EUR 78.7bn in More than 200 single transactions in 13 different currencies. 11 benchmark bonds in EUR and USD account for approx. 60% of total funding. The world s only issuer able to offer all important maturities in EUR and USD. Among largest transactions ever by a non-domestic issuer in AUD and CAD with dollar 1bn each. Two further CNH issues after entering this prospering market in the previous year. Increasing importance of central banks as investors in USD bonds. Excellent funding conditions despite tightening spreads vs. Bund and peers. Among the world s best ESG-rated financials. 3

4 Funding approach: proven three-pillar-strategy A well-structured range of products offers suitable opportunities for various investors needs; increasing importance of benchmark pillar 30 November 2013: EUR 65.2 bn Benchmark programmes Other public transactions Private placements Large and liquid bonds in Large and liquid bonds Customized products for EUR and USD in non-benchmark investor needs at least 3, 5 and 10 year maturities with or Flexible in currency, benchmark maturities without call option structure and maturity each year (EUR und USD) in strategic markets Target benchmark sizes: (GBP, AUD, SEK, JPY, EUR 3 5 bn CNH, NOK, CHF ) USD 3 5 bn in further currencies Other structured public bonds in various currencies 2013: 11 transactions 2013: 106 transactions 2013: 90 transactions 60% 35% 5% 4

5 Investor base: a global approach assures high liquidity 1 st pillar EUR: stable distribution compared to 2012, regulatory driven demand still makes bank treasuries the largest investor group Aggregate Placement of KfW EUR Benchmark Bonds 2009 through % 80% % 80% % 40% % 40% % 0% % 0% Europe ex Germany Germany Asia Americas Other Central Banks Banks Asset Management Insurance & Pension Funds Other : based on allocation : based on orders. 5

6 Investor base: a global approach assures high liquidity 1 st pillar USD: demand from central banks (especially from Asia) increased by one third making them by far KfW s largest USD investor group Aggregate Placement of KfW USD Global Bonds 2009 through % 80% % 80% % 40% 20% % 40% 20% % % Europe Asia Americas MEA Other : based on allocation : based on orders. Central Banks Banks Asset Management Insurance & Pension Funds Other 6

7 Funding costs Result of current money market policy: KfW spreads vs. Bund have tightened, spreads vs. peers have tightened even more KfW vs. banks Swap spread development of 5- to 7- year EUR-denominated bonds over the past three years (in basis points) 0 Sources: Markit, Commerzbank Research -40 KfW vs. Bund Nov-10 Feb-11 Jun-11 Sep-11 Dec-11 Apr-12 Jul-12 Oct-12 Jan-13 May-13 Aug-13 Nov-13 KfW Supranationals German Government Bonds Senior Unsecured Banks Covered Bonds Attractive yield pick-up of KfW bonds vs. Bund remains, though at a lower level Spreads throughout all asset classes have tightened considerably 7

8 Currency mix Core currencies EUR and USD account for 87% of total largest share ever; unfavourable swap dynamics in non-core currencies November % 1% 4% 5% 7% 32% 49% EUR USD GBP AUD JPY SEK Others 2% 2% 2% 4% 39% 2% 48% EUR USD AUD GBP JPY CAD Others 11 benchmark bonds in 2013 making KfW the only issuer offering all important maturities in EUR & USD Among largest AUD & CAD issues ever by a foreign issuer with dollar 1bn each Two further CNH issues in 2013 after KfW entering this prospering market in the previous year 8

9 Adjusted timing pattern in 2013 SSA issuers are typically front-loading, raising about two thirds of their funding during first half of the year 100% Total: ~ 66bn 90% 80% 70% 60% 50% Reduced pace of funding during Q2 and Q3 5yr-average 5.2bn 7.3bn 1.6bn 6.3bn 10.2bn 2.8bn 40% 30% 20% 5.6bn 2.4bn 2.5bn 9.5bn % 11.7bn 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec KfW s proven capital market access during the entire year allows for smoothly adjusted timing pattern More even funding pattern reduced costs of carry during Q2 and Q3 9

10 SRI eligibility of KfW bonds KfW follows a holistic approach which puts emphasis on the overall sustainability of the issuer Increasing awareness of investors to climate-themed or socially responsible investing. KfW is by far the world s biggest player of broad clean energy investment with more than EUR 120bn since Source: Bloomberg New Energy Finance 2013 KfW has been assigned top ESG* ratings by independent rating agencies: No. 2 out of 192 listed and non-listed banks, No. 3 out of 23 financial institutions, Among top 4 out of 127 bond issuers in the financial sector. KfW is among the world s best ESG-rated financials Approx. 40% of KfW s new funds raised are for clean energy investments Approx. 6% of KfW s new funds raised are for financings of developing and transition countries * ESG = Environment, Social, Governance 10

11 Funding volume Decreasing funding volume in 2013 due to high unscheduled repayments in lending business; outlook: reliable and strong presence in the capital markets 90 Funding volume (in EUR bn) * 5% % % 10 * As of 30 November ytd 2014e Benchmark bonds Public transactions Private placements 11

12 KfW in 2014 Strong presence in the capital markets with stable funding volume of EUR 65 70bn. Continuation of proven three-pillar-strategy. Flexible approach with regard to timing, size, products, and currencies. No major changes in KfW s mix of currencies and instruments: EUR and USD remain core currencies Benchmark programmes remain key Possibly increasing competition between bond issuers in EUR due to change in swap dynamics. Continuation of strong focus on sustainable behaviour in all of KfW s activities including on the capital markets. Whatever the financial climate, KfW is well prepared for

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