fy results 2014 20150331.ppt · 1933, as amended ("qibs"). by participating in the...

DEPFA GroupAnnual Results 2014 Presentation1st April 2015

AUDITED FIGURES

2

Disclaimer

This presentation is not an offer or invitation to subscribe for or purchase any securities.

No warranty is given as to the accuracy or completeness of the information in this presentation. You must make your own independentinvestigation and appraisal of the business and financial condition of DEPFA BANK plc (DEPFA), its direct and indirect subsidiaries andits securities. Nothing in this presentation shall form the basis of any contract or commitment whatsoever.

For the purpose of this presentation DEPFA Group means DEPFA BANK plc together with its subsidiary undertakings.

This presentation may only be made available, distributed or passed on to persons in the United Kingdom in circumstances in whichsection 21(1) of the Financial Services and Markets Act 2000 does not apply.

This presentation and any written materials distributed during such presentation may only be made available to persons residing in theU.S. and to U.S. citizens if they are qualified institutional buyers, as such term is defined in Rule 144A under the U.S. Securities Act of1933, as amended ("QIBs"). By participating in the presentation and accepting this document, you are deemed to represent that you area QIB.

This presentation may only be made available, distributed or passed on to persons in Australia who qualify as 'wholesale clients' asdefined in section 761G of the Australian Corporations Act.

This presentation is furnished to you solely for your information. You may not reproduce it or redistribute to any other person.

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.

By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the noted limitations.

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)


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


27.2%

5.4

0.20.1

31/12/2014

31/12/2014

1.5

6

DEPFA GroupBalance Sheet and Capital


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%


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%


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%


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


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

fy results 2014 20150331.ppt · 1933, as amended ("qibs"). by participating in the...

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