2
Disclaimer
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For the purpose of this presentation DEPFA Group means DEPFA BANK plc together with its subsidiary undertakings.
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This document may contain forward-looking statements based on calculations, estimates and assumptions made by seniormanagement of DEPFA and external advisors and are believed warranted. These statements may be identified by such words as“may”, “plans”, “expects”, “believes” and similar expressions, or by their context and are made on the basis of current knowledge andassumptions. Various factors could cause actual future results, performance or events to differ materially from those described in thesestatements. Such factors include general economic conditions, the conditions of the financial markets in Germany, in Ireland, in Europe,in the United States and elsewhere, the performance of DEPFA’s core markets and changes in laws and regulations. No obligation isassumed to update any forward-looking statements.
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Annual Results 20141st April 2015
3
Income Statement (IFRS)
DEPFA GroupIncome StatementDEPFA GroupIncome Statement
1. Net interest and similar income in 2014 includes EUR -36m loss on a loan termination with a HRE Group affiliate company and EUR3m gain on buy-backs of debt instruments (2013: EUR 98m)
2. Net trading income in 2014 includes EUR -32m derivative valuation effects from counterparty risk parameters including DEPFA Group’s own credit risk (DVA/ CVA) (2013 : EUR -21m)
3. The contract to service FMS-WM expired on 30th September 2013 4. In line with EU Commission Decision July 2011, Annual State Aid Compensation for 2013 amounted to EUR 36m (2012: EUR 59m)
Annual Results 20141st April 2015
EUR millions FY 2011 FY 2012 FY 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 FY 2014
Operating revenues 228 134 67 -18 -40 -52 -11 -121
Net interest and similar income1 196 86 64 -7 -6 -41 -1 -55
Net commission income -19 -19 -15 -1 -1 1 -1 -2
Net trading income2 19 41 -18 -12 -35 -7 -12 -66
Net income from financial investments -53 -11 -9 0 0 0 -3 -3
Net income from hedge relationships 4 5 -31 1 1 0 2 4
Balance of other operating income/expenses3 81 32 76 1 1 -5 4 1
Provisions for losses on loans and advances 31 37 2 0 5 11 1 17
General administrative expenses -134 -117 -96 -22 -26 -20 -22 -90
Balance of other income/expenses -1 14 7 -1 1 -1 10 9
Pre-tax profit/loss 124 68 -20 -41 -60 -62 -22 -185
Taxes on Income -5 -9 56 30
Net profit/loss4 119 59 36 -155
4Note: Figures may not add up due to rounding1. Net of allowances for losses on loans and advances2. Cash reserve, other assets (especially positive market values of hedging derivatives), income tax assets3. Provisions, other liabilities (especially negative market values of hedging derivatives), income tax liabilities, subordinated capital4. 31/12/13 amount re-stated to reflect the deconsolidation of DEPFA Finance NV under IFRS 10. DEPFA Finance NV was acquired by DEPFA in July and is
reconsolidated as at 30th September 2014
DEPFA GroupBalance Sheet
Total assets (IFRS)EUR billions
Total liabilities and equity (IFRS)EUR billions
Total counter-effects resulting from the asset transfer to FMS-WM
31/12/2011: EUR 69bn 31/12/2012: EUR 17bn
31/12/2013: EUR 5bn 31/12/2014: EUR 2bn
8 7 5 4
3430
23 23
33
2 2
59
16
106
21
13
610
31/12/2011 31/12/2012 31/12/2013 31/12/2014
Trading Liabilities
Loans and Advances
Other Debt Securities
Lettres de Gage
ACS
Other Liabilities
Equity
7 8 5 5
32 2519 18
71
27
2016
21
13
610
31/12/2011 31/12/2012 31/12/2013 31/12/2014
Trading Assets
Loans & Advances
Financial Investments
Other Assets
130
73
50
1
2
223
50
130
73
22
2
3
49 49
2
24 4
Annual Results 2014 1st April 2015
51. Includes the Annual State Aid Compensation payment of EUR 36 million for 2013 (2012: EUR 59m) accounted for directly through equity2. Regulatory CVA under CRD IV is included in Credit Risk; this along with the application of IFRS 10, resulting in the deconsolidation of
DEPFA Finance NV, led to an increase in Risk Weighted Assets in Q1 2014. The reconsolidation of DEPFA Finance NV into DEPFA Group in July 2014 resulted in a decrease in RWA as at 30th Sept 2014
DEPFA GroupCapitalisation
4.53.5
6.0 6.15.1 5.25.2
RWA/Tier I ratio EUR billions Note: Figures may not add up due to rounding
37.6%
Operational risk
Credit risk Standardised Approach
Market riskTier I ratio
0.9
48.3%47.8%
Hybrid Capital
Core / Common Equity Tier I Capital (CET1)
28.2%
6.40.1
2
25.7%
6.30.1
1.6
0.9 0.9 0.9 0.9 0.8 0.8
1.1
0.9 0.9 0.7 0.7 0.7 0.6
Tier I capital EUR billionsNote: Figures may not add up due to rounding
Basel II Standardised Reporting CRD IV
2.7
1.8 1.81.6 1.5
30/09/2014
31/12/201331/12/201231/12/2011
1
30/09/2014
31/12/201331/12/201231/12/2011
31/03/2014
31/03/20141
0.2
30/06/2014
1.6
31/06/2014
0.20.1
5.4
25.1%
5.74.8
3.8
0.2
0.2
0.20.3
0.1
0.10.2
Annual Results 2014 1st April 2015
27.2%
5.4
0.20.1
31/12/2014
31/12/2014
1.5
6
DEPFA GroupBalance Sheet and Capital
Annual Results 20141st April 2015
Pro-forma1st Jan 2014 30th Sept 2014 31st Dec 2014
Balance Sheet
Total Assets (EUR billion) IFRS 49.1 47.0 48.5
Leverage Exposure (EUR billion)1) N/a 38.1 38.4
Leverage Ratio (Transitional Ratio %)2) N/a 3.99% 3.86%
Leverage Ratio (Fully loaded %) N/a 2.08% 2.11%
Capital Fully Loaded CET1 Ratio % N/a 14.69% 14.92%
Fully loaded CET1 Capital (EUR billion) N/a 0.8 0.8
Transitional Rules CET1 Capital Ratio % 20.3% 15.26% 15.48%
Transitional Rules CET1 Capital (EUR billion) 0.9 0.8 0.8
Risk Weighted Assets (EUR billion)3) 4.7 5.4 5.4
1) Under the Leverage Exposure calculation additional netting of derivatives exposures is permitted compared to the IFRS balancesheet derivative exposure. Leverage Exposure is described in detail in Section 14 of ‘DEPFA Group Pillar 3 Disclosure Report at 31December 2014’
2) The Leverage Ratio to be disclosed from 1st January 2015 with migration to Pillar 1 treatment on 18th January 2018. The TransitionalRatio as at 31st December 2014 includes hybrid capital which will be grandfathered to 2022, subject to ratification by the EuropeanCommission
3) The movement in RWA is attributable to rating downgrades, increased exposures to institutions, increased regulatory CVA (RWAequivalent) partially offset by scheduled maturities
7Note: Figures may not add up due to rounding1. Excluding counter-effects resulting from the asset transfer to FMS-WM2. Including intra-group exposure3. The EaD amounts presented are based on the CRD IV definition of EaD and 31 December 2013 amounts are restated accordingly.
Previous reports presented EaD under the Basel II definition4. Includes Money Market activity with the Central Bank of Ireland
DEPFA GroupTotal Core Portfolio (Excluding FMS-WM pass-through effects)
Exposure by regionEUR billions (EaD)1,2
US21%
Germany26%
Italy2%
Spain9%
Other RoW5%
Holland4%
Other Europe6%
France4%
Scandi3%
Ireland2%
Austria5%
Belgium8%
UK2%
Japan1%
EM2%
9.0
6.9
3.0
2.1 2.0 2.0 2.01.5 1.5 1.4 1.2 0.9 0.9 0.6 0.7
8.0
6.5
2.7 2.4
1.30.6
1.71.3 1.5 1.4
0.5 0.8 0.6 0.4 0.7
0123456789
10
Germany US Spain Belgium France Italy Other Europe Netherlands Other RoW Austria Ireland Scandinavia UK Japan EmergingM arket
31/12/2014 Total: EUR 30.4bn
31/12/2013 Total: EUR 35.7bn3
4
31/12/20133 31/12/2014
Italy6%
US19%
Germany24%
Spain8%
Other RoW4%
Holland4%Other
Europe6%
France6%
Scandi3%
Ireland3%
Austria4%
Belgium6%
UK3%
Japan2%
EM2%
Annual Results 2014 1st April 2015
4
4
8
Sov (indirect) 8%
PSE 24%
Sovereign 9%Other 1%Supra 4%
Structured Finance 14%
Financials 9%
Reg Govt (Indirect) 7%
Reg Govt 13%
PSE (Indirect) 11%
4.8
2.8
8.3
1.4
5.1
3.23.8
4.9
1.1
0.3
2.82.5
7.3
3.43.8
2.12.8
4.2
1.2
0.3
0
1
2
3
4
5
6
7
8
9
Sovereign Sovereign (Indirect) PSE PSE (Indirect) Reg Govt Reg Govt (Indirect) Financial Institution Structured Finance Supranational Corporation
Note: Figures may not add up due to rounding1. Excluding counter-effects resulting from the asset transfer to FMS-WM2. Including intra-group exposure3. The EaD amounts presented are based on the CRD IV definition of EaD and the 31 December 2013 amounts are restated accordingly.
Previous reports presented EaD under the Basel II definition
31/12/20133
DEPFA GroupTotal Core Portfolio (Excluding FMS-WM pass-through effects)
Exposure by borrower classificationEUR billions (EaD)1,2
31/12/2014 Total: EUR 30.4bn31/12/2013 Total: EUR 35.7bn3
31/12/2014
Sov (indirect) 8%
PSE 23%
Sovereign 13%
Other 1%Supra 3%
Structured Finance 14%
Financials 11%
Reg Govt (Indirect) 9%
Reg Govt 14%
PSE (Indirect) 4%
Annual Results 2014 1st April 2015
99
10.5
4.6
1.7
5.4
3.3
1.22
1.3
3 2.5
0.2
12.1
3.1
1.6
4.4
2.4
0.71.2
2.41.8
0.5 0.20
2
4
6
8
10
12
14
AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- Sub InvestmentGrade
31/12/20133
Note: Figures may not add up due to rounding 1. Excluding counter-effects resulting from the asset transfer to FMS-WM 2. Including intra-group exposure3. The EaD amounts presented are based on the CRD IV definition of EaD and the 31 December 2013 amounts are restated accordingly.
Previous reports presented EaD under the Basel II definition4. Internal ratings mapped to Standard & Poor’s scale
DEPFA GroupTotal Core Portfolio (Excluding FMS-WM pass through effects)
Exposure by Internal RatingsEUR billions (EaD)1,2,4
31/12/2014
31/12/2014 Total: EUR 30.4bn31/12/2013 Total: EUR 35.7bn3
AAA40%A
2%
A-4%
BBB6%
BBB-2%
AA+10%
AA5%
AA-14%
A+8%
BBB+8%
Sub Investment
Grade1%
Annual Results 20141st April 2015
AAA29%
A3%
A-6%
BBB8%
BBB-7%
AA+13%
AA5%
AA-15%
A+9%
BBB+4%
Sub Investment
Grade1%
10
DEPFA GroupTotal Problem Loans
Note: Figures may not add up due to rounding 1. Excluding counter-effects resulting from the asset transfer to FMS-WM 2. Excluding exposures guaranteed by FMS-WM 3. No signs that the deal will recover soon, compulsory measures necessary 4. Payments more than 90 days overdue or criteria according to respective policy apply
Problem loans (including derivatives)EUR millions (EaD)1,2
9088
84
95
3
2
2
31 December 2011 31 December 2012 31 December 2013 Q3 2014
Workout
Restructuring
90
88
3
4
31/12/2011 31/12/2012 31/12/2013
86
31/12/2014
93
Number of Counterparties
31
3
2
• The number of problem loans have remained at a low level since 2010.
• The increase in December 2014 versus December 2013 is as result of FX movements
• Apart from problem loans, all portfolio exposures have matured on due dates since 2010 and there have been no loan extensions outside of original contractual commitments
• No new problem loans (including derivatives) since the transfer of assets to FMS-WM in 2010
• Problem loans (including derivatives) have adequate provisions in place to compensate for potential losses
Annual Results 20141st April 2015
11
Contact Details
FMS WertmanagementHead of Communications
• Andreas Henry +44 89 954 7627 [email protected]
DEPFA Group Communications
• Rachel Martin +353 1 792 [email protected]
DEPFA Investor Relations
• Karen Conway +353 1 792 [email protected]
© DEPFA BANK plc1 Commons Street
Dublin 1, Ireland+353 1 792 2222www.depfa.com
Annual Results 2014, 1st April 2015