Guaranteed by the Federal State of Baden-Württemberg explicitly, unconditionally, irrevocably, statutory

Transcription

1 L-Bank Since December 1 st 1998 Guaranteed by the Federal State of Baden-Württemberg explicitly, unconditionally, irrevocably, statutory Bloomberg: LBank<GOVT><GO> :

2 Baden-Württemberg Overview: The state of Baden-Württemberg 1 10 % of Germany s surface area 13.2 % of Germany s population 15.1 % of Germany s GDP 3.5 % unemployment rate (35,751 square kilometres) (10.9 million inhabitants) (EUR 493 bn) (vs. 5.7 % in Germany overall) Source: Federal Statistical Office (date as of Februar 2018) Bloomberg: LBank<GOVT><GO> :

3 Baden-Württemberg Baden-Württemberg - A Global Player Automobiles & Components IT Health Care Financials Energy Industrials / Capital Goods Consumer Durables & Apparel Bloomberg: LBank<GOVT><GO> :

4 Baden-Württemberg Education and research in Baden-Württemberg strength high level Focus on education in Baden- Württemberg: rising number of students, high educational background 3 out of 11 elite universities in Germany are located in BW. In total 86 university type institutions of higher education. High tech location: 24% of employees work in high-tech industry sectors, e.g. engineering, chemicals or electrical industry 2017: 14,511 registered patents in Baden-Württemberg vs. Germany, approx. 47,779 Favourable prospects for Baden- Württemberg to remain a leader in high tech industries Bloomberg: LBank<GOVT><GO> :

5 Investment in % of GDP Patente per habitants Baden-Württemberg Baden-Württemberg s investment in the future 1 Investment in Research & Development in % of GDP (2015) Patents registered per 100,000 inhabitants in Source: OECD - MSTI; EPO-PATSTAT; EUROSTAT; WORLDBANK; Computations by Fraunhofer ISI Bloomberg: LBank<GOVT><GO> :

6 Baden-Württemberg Baden-Württemberg and the Innovation Index 1 Baden-Württemberg is #1 within the European Union since the introduction of the Index of Innovation in 2004 Indicator reflects the ratio 3:1 of the sub-indices level and dynamic Baden-Württemberg Sweden Finland Belgium Netherlands Austria Source: State Statistical Office (next update: December 2018) Bloomberg: LBank<GOVT><GO> :

7 EUR in bn Baden-Württemberg Baden-Württemberg s GDP vs selected European Countries 1 GDP in EUR bn in Source: State Statistical Office; eurostat Bloomberg: LBank<GOVT><GO> :

8 Baden-Württemberg Baden-Württemberg s solidly based export structure 40.77% of GDP is exported 1 Asia (thereof: Japan 2.2%, China 7.3%); 17.9% Rest of World 3.0% Euro Zone 33.8% Americas (thereof: USA 13.9%); 15.4% Rest of Europe; 29.9% Source: State Statistical Office (2018); total exports 2017: EUR 201 bn Bloomberg: LBank<GOVT><GO> :

9 Baden-Württemberg Mutual support: German revenue equalization system 1 Mutual support: German revenue equalization system Constitutional support mechanisms, vertically between the Bund and individual Federal States and horizontally between the individual Federal States Horizontally, economically stronger Federal States support weaker Federal States with annual payments Vertical, additional payments are made by Federal Republic of Germany ( Bund ) to certain Federal States 0.5 vertical equalization payments (EUR 9.4 billion) horizontale equalization payments (EUR 11.2 billion) 0.2 economically stronger states (2017) economically weaker states (2017) Payer States Receiver States Source: Federal Statistical Office Bloomberg: LBank<GOVT><GO> :

10 L-Bank Overview: European Development Agencies Supranational Aaa/AAA Government guaranteed Aaa/AAA Baa2/A- Aa1/AA+ State guaranteed Aaa/AAA Aa1/AA- Bloomberg: LBank<GOVT><GO> :

11 L-Bank Baden-Württemberg s State Development Agency Institutional Liability and Guarantor Liability of the State Baden-Württemberg; in addition explicit, unconditional and irrevocable Guarantee of the State of Baden-Württemberg for specific liabilities - inter alia arising from the issuance of bonds, fixed forward transactions and options. 100 % owned by the State of Baden-Württemberg. Exempt from corporate income tax and from insolvency proceedings. BIS III o According to BIS-Standards under BASLE III the Capital Requirements Regulation (EUNo 573/2013), a Zero Risk-Weighting can be applied to L-Bank provided that: applying the standardised approach the guarantee of the State of Baden-Württemberg is accepted as Zero Risk Weighting under the relevant legislation, or applying the Internal Ratings Baded Approach IRB) such guarantee leads to a probability of default (PD) of 0%. o According to the Liquidity Coverage Ratio requirements, L-Bank bonds count among level 1 assets. Thereby, financial institutions can add L- Bank bonds to the highest liquidity class (HQLA level 1). Solvency II o According to Solvency II a Zero-Risk-Weighting can be applied to L- Bank. According to the criteria stipulated in the Single Supervisory Mechanism (SSM) Regulation and the SSM Framework Regulation L-Bank is classified as a significant institution. Therefore it is directly supervised by the ECB and the Single Resolution Board is the competent resolution authority. L-Bank Bonds are GC-Pooling eligible assets. L-Bank has to make contributions to bank levy as of Taking account of the configuration of the Public Sector Purchase Programe (PSPP) of the ECB, L-Bank s bonds are eligible assets for this programme. Bloomberg: LBank<GOVT><GO> :

12 L-Bank Instrument of EU, national and state economic and regional policy Close co-operation with EIB and KfW Promotion of home - ownership Support of small and medium sized enterprises Programme linked lending to local cities and municipalities Services on behalf of the State of Baden-Württemberg Provision of private equity and venture capital Bloomberg: LBank<GOVT><GO> :

13 L-Bank Fundidng Volume in bn Euro Well-established strategic borrowing philosophy 1 Investor-driven funding strategy Liquid benchmark issues in EUR and USD (1 bn+) Flexibility under EUR 30 bn Debt Issuance Programme Commercial Paper Programme with a volume of EUR 15 bn Funding Volume ( ): * Source: L-Bank internal *planed funding volume: 5-7 bn Bloomberg: LBank<GOVT><GO> :

14 L-Bank L-Bank in Numbers In EUR millions Total 70, , , , , Equity 2, , , , , Net Interest Income Net Income Tier 1 Ratio % 14.17% 16.38% 18.00% 18.67% Tier 1 Ratio fully phased-in % 13.95% 16.38% 18.00% 18.67% Equity Ratio % 16.87% 19.00% 20.29% 20.73% Return on equity 11.73% 12.22% 10.67% 12.42% 5.44% Cost-Income-Ratio 32.67% 39.62% 41.00% 41.65% 52.39% 2018 Moody`s Standard& Poor`s Rating Aaa AAA 1 economic view 2 until 2013 Basel II, from 2014 CET1-quota Basel III 3 CET1-Quota Basel III Bloomberg: LBank<GOVT><GO> :