1 / 38

Eurohypo Group

Eurohypo Group. Investor Conference „Covered Bond Recovery“. Basel ‌‌‌ 27 August 2009. Agenda. Teil 1: Franz-Josef Kaufmann Head of Capital Markets Funding Commerzbank Group Teil 2: Reinolf Dibus Member of the Board of Managing Directors Eurohypo Europäische Hypothekenbank S.A.

albany
Download Presentation

Eurohypo Group

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Eurohypo Group Investor Conference „Covered Bond Recovery“ Basel ‌‌‌ 27 August 2009

  2. Agenda Teil 1: Franz-Josef Kaufmann Head of Capital Markets Funding Commerzbank Group Teil 2: Reinolf Dibus Member of the Board of Managing Directors Eurohypo Europäische Hypothekenbank S.A. Basel, 27 August 2009

  3. Eurohypo at a glance • Eurohypo is one of Germany’s oldest banks. Eurohypo’s history goes back to the foundation of the “Frankfurter Hypothekenbank” in 1862 • Eurohypo is part of Commerzbank Group - Germany’s second largest banking group – specialist for Public Finance and Commercial Real Estate • Premier issuer in the Jumbo covered bond market with a market share of 7 % • Largest issuer in the German Jumbo Pfandbrief market with a market share of more than 22 % • Eurohypo issued Euro 18 billion Hypotheken Pfandbriefe since summer 2007 • Top Ratings from all major agencies for Eurohypo’s covered bond products Basel, 27 August 2009

  4. Table of contents (Part 1) • Update 1H2009 • Successful funding effort throughout the crisis • Pfandbriefe collateral pools (Eurohypo AG) Basel, 27 August 2009

  5. 01 Update 1H2009 Basel, 27 August 2009

  6. H12009 highlights Operating results • Operating income of Euro -59 m includes valuation adjustments of Euro 94 m on the US RMBS Portfolio. US sub-prime portfolio now adjusted by around 90 %. • Net interest income stable, despite difficult market environment • Anticipated level of 461 m loan loss provisions caused by real estate market crisis • Administrative expenses decreased further 3 % to Euro 229 m even after integration of Essen Hyp Seasoned portfolios • Commercial real estate assets decreased from 78.9 bn (YE2008) to Euro 77.4 bn after prolongations of Euro 3.8 bn and new business of Euro 0.7 bn • Conservative downsizing of public finance assets from Euro 154.3 bn to Euro 136.6 bn Funding capabilities • Access to long-term funding, total issuance of Euro 10.3 bn*, thereof Euro 7.2 bn* Mortgage Pfandbriefe • Issuance of three Jumbo Benchmark Pfandbriefe with a total volume of Euro 4.5 bn* *Including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value day 2 July 2009 Basel, 27 August 2009

  7. Commercial Real EstateKey elements of the realignment Markets • Focus on ten core markets Germany, France, Italy*, Poland, Portugal, Spain, UK, USA, Russia* and Turkey* • Focus on professional real estate investors and developers Customer exposure ≥ Euro 15 m Clients New business • Increasing/confirming minimum ticket thresholds, Minimum individual domestic tickets > Euro 10 m Minimum individual international tickets > Euro 20 m Restriction of concentration risk through upper threshold for final hold • Concentration on five asset classes Offices, German residential real estate, trade and shopping centres, logistics and hotels Asset classes Products • Concentration on profitable CRE finance Single asset and portfolio financing, Development financing and financing-related derivatives • Downsizing of CRE portfolio to Euro 67 bn by end 2011 • Cost-cutting of Euro 110 m p.a. and • Headcount reduction of > 30 % until end 2011 Targets *No new business until further notice Basel, 27 August 2009

  8. Commercial Real Estate: Portfolio analysis by region as of 30 June 2009 Exposure at default (EAD) Euro 77.4 bn • Germany Downswing of the office markets; retail and residential markets yet robust • UK Sharp corrections in each market segment; hopeful signs from the investment market • USA Deteriorating labour market burdens the real estate sector • Spain Economic slump with negative impacts on the real estate markets • France Downturn of the letting markets holds on • Poland Negative adjustments in the real estate sector despite moderate contraction of the economy Basel, 27 August 2009

  9. Commercial Real Estate: Portfolio analysis by asset type as of 30 June 2009 Exposure at default (EAD) Euro 77.4 bn • Offices World-wide downswing of office letting markets continues • Retail The retail markets are affected negatively from the global economic downswing • Residential German residential market remains robust; downswing in UK and USA seems to ease • Hotel Hotel performances worsening; the luxury segment is affected most • Warehousing Weakening demand, but rents held up almost firm Basel, 27 August 2009

  10. Public FinanceAsset reduction by 12 % Outstanding business In Euro bn Total by internal ratings Euro 136.6 bn * *Hypothekenbank in Essen’s PF assets of Euro 66.4 bn transferred in August 2008 AAA: 1.0 to 1.2 AA: 1.4 to 1.6 A: 1.8 to 2.0 BBB: 2.2 to 2.8 BB: 3.0 to 3.6 B: 3.8 to 5.0 CCC: 5.2 to 5.8 Basel, 27 August 2009

  11. Successful funding effort throughout the crisis 02 Basel, 27 August 2009

  12. 1H2009: Eurohypo took advantage of positive market environment to cover large parts of funding plan Funding plan Commerzbank Group and Eurohypo thereof Commerzbank Group approx. Euro 20 bn Eurohypo AG Commerzbank Group 2009 funding plan for senior unsecured over 100 % completed**; Euro 2.5 bn already transferred to Eurohypo Approx. Euro 10.5 bn Senior unsecured Approx. Euro 6 bn Status: 100 % completed** Eurohypo issued Euro 7.2 bn* Mortgage Pfandbriefe in 1H2009 Approx. Euro 6 bn Approx. Euro 6 bn Mortgage Pfandbriefe Issuance on an opportunistic basis due to asset reduction; Euro 500 m issued in 1H2009 Up to Euro 3 bn Up to Euro 3 bn Public Sector Pfandbriefe Demand Products Demand *Including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value date 2 July 2009 **as end of June 2009 Basel, 27 August 2009

  13. Eurohypo successfully issued Euro 4.5 bn via Jumbos Jumbo issuance June 2009 Euro 1.50 bn 4.375 % Jumbo Mortgage Pfandbriefe March 2009 Euro 1.25 bn 3.75 % Jumbo Mortgage Pfandbriefe May 2009 Euro 1.75 bn 3.75 % Jumbo Mortgage Pfandbriefe Trend ≈ Eurohypo issued 3 Jumbo Mortgage Pfandbriefe within 3 months Basel, 27 August 2009

  14. 1H2009: Eurohypo issued Euro 7.2 bn* Mortgage Pfandbriefe Maturity profile Pfandbrief mix Maturities 5 years and longer Maturities < 5 years ~Euro 6.8 bn* ~Euro 0.3 bn Euro bn Euro 7.2 bn* * *Including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value date 2 July 2009 • Funding plan for Mortgage Pfandbriefe done • Clear priority for longer maturities Basel, 27 August 2009

  15. Pfandbrief: Eurohypo has raised over € 17 bn* in Mortgage Pfandbriefe since the crisis started Private placements / benchmarks • Eurohypo has placed more than Euro 17 bn* in Mortgage Pfandbriefe since 4Q2007 into the market • Private placements (> Euro 8.5 bn) a stable market for domestic and registered Pfandbriefe • Eurohypo issued over Euro 7 bn* in Mortgage Pfandbriefein 1H2009 in Euro bn Lehman default By maturity • Eurohypo has issued 6 longer-dated Jumbo Mortgage Pfandbriefe: • Total volume Euro 9 bn • Maturities 5 to 10 years • Over 80 % with maturities of 5 years and longer in Euro bn Maturities < 5 years Maturities 5 years and longer 6.0 ~Euro 3.2 bn ~Euro 14 bn* 5.0 4.0 3.0 2.0 1.0 0.0 *Including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value date 2 July 2009 1 Y 2 Y 3 Y 4 Y 5 Y 6 Y 7 Y 8 Y 9 Y 10Y > 10 Y Basel, 27 August 2009

  16. Pfandbrief: Eurohypo has increased issuance and outstandings Mortgage Pfandbrief new issuance • Pfandbrief provides stable access to long-term funding • Increased issuance of Mortgage Pfandbriefe also in times of crises • Strategic benchmark transactions • Stable private placements into domestic and registered markets • Funding optimization – focus on covered bond funding after spread widening between secured and unsecured funding • Pfandbrief continues to be a hiqh quality product backed by a broad investor base • Average funding costs of mortgage Pfandbriefe issued by Eurohypo in 1H2009 were below 90 bps In Euro bn 2H 2009 Outstanding Mortgage Pfandbriefe In Euro bn 50 ** 47.3* 47.2 45.7 45 43.4 38.9 40 35 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Jun 2009 *Not including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value date 2 July 2009 **Including Essen Hyp Basel, 27 August 2009

  17. Sound funding mixas of 30 June 2009 Funding strategy Funding structure Euro bn • Covered bonds • Euro benchmark issuance • Utilisation of domestic market • Registered Pfandbriefe • Private placements • Lettres de Gage primarily in Non-Euro currencies (CHF, USD, GBP) Euro 239.9 bn* Unsecured • Careful re-entrance of unsecured market *Not including Euro 1.5 bn 10 year Jumbo Mortgage Pfandbrief issued on 25 June 2009 with value date 2 July 2009 **Including money market transactions, fixed-term deposits and call money Further diversification of investor base Over 50 % funded via covered bonds Basel, 27 August 2009

  18. Well diversified covered bond profile as of 30 June 2009 Eurohypo’s benchmark curve Euro bn Product mix Euro 137.2 bn* Pfandbrief mix Euro 122.4 bn* *Not including Euro 1.5 bn 10 year Jumbo Mortgage Pfand- briefe issued on 25 June 2009 with value day 2 July 2009 Basel, 27 August 2009

  19. 03 Pfandbriefe collateral pools (Eurohypo AG) Basel, 27 August 2009

  20. Real estate collateral pool of Eurohypo AGas of 30 June 2009 Total** Euro 51.7 bn International real estate loans by country Euro 13.4 bn *Hungary (2.7%), Finland (2.6%), Czech Republic (2.0%), Belgium (0.8%), Romania (0.7%). Slovakia (0.6%), Ireland (0.5%), Lithuania (0.3%), Iceland (0.2%) and Denmark (0.2%) **Excluding substitute collateral Basel, 27 August 2009

  21. Real estate collateral pool of Eurohypo AGas of 30 June 2009 Total* Euro 51.7 bn Total by property type* Euro 51.7 bn *Excluding substitute collateral *Excluding substitute collateral Basel, 27 August 2009

  22. Public sector collateral pool of Eurohypo AGas of 30 June 2009 Total by type of borrowers Euro 70.4 bn International public sector assets by country Euro 18.5 bn *Including countries with less than 2.6 % Basel, 27 August 2009

  23. Public sector collateral pool of Eurohypo AGas of 30 June 2009 Total by internal ratings Euro 70.4 bn • AAA: 1.0 to 1.2 • AA: 1.4 to 1.6 • A: 1.8 to 2.0 • BBB: 2.2 to 2.8 • NIG/NIR • BB: 3.0 to 3.6 • B: 3.8 to 5.0 • CCC: 5.2 to 5.8 • NIG: Non-investment grade • NIR: Not internal rated Basel, 27 August 2009

  24. Agenda Teil 1: Franz-Josef Kaufmann Head of Capital Markets Funding Commerzbank Group Teil 2: Reinolf Dibus Member of the Board of Managing Directors Eurohypo Europäische Hypothekenbank S.A. Basel, 27 August 2009

  25. Covered Bond Konferenz in Basel 27. August 2009 Covered Bond RecoveryEurohypo Luxemburg Reinolf Dibus : Präsentation der Eurohypo S.A. Luxemburg

  26. Inhaltsverzeichnis (Teil 2) • Short Profile und strategische Bedeutung im Konzern • Facts and Figures • Steuern durch die Krise • Ausblick Basel, 27 August 2009

  27. Short Profile und strategische Bedeutung • Spezialbankprinzip: Beschränkung auf risikoarmes Kommunal-Kreditgeschäft • 100% Tochter der Eurohypo AG, Teil des Commerzbank Konzerns • Komplementäres Geschäftsmodell für Public Finance zur Eurohypo AG- “deckungsfähige Kommunaldarlehen”: Definition nach Luxemburger Gesetz - erweiterter geografischer Rahmen (OECD) • Komplementäres Funding- Lettres de Gage Emissionen mit starker Gewichtung der Fremdwährungen- EZB- und Repogeschäft zur kurzfristigen Liquiditätssicherung- konzerninternes unsecured Funding Basel, 27 August 2009

  28. Facts and Figures: Bilanzkennzahlen Lux Gaap Stabile Erträge auch in der Krise Keine Impairments durch Kreditausfälle Solide Refinanzierung Basel, 27 August 2009

  29. Refinanzierungsübersicht absolute Beträge mio EUR und prozentual • Fokus auf der besicherten Refinanzierung: - Lettres de Gage - Repo- EZB • Aus Kostengründen werden fällige Lettre de Gage nicht ersetzt: => stabiler Zinsertrag • Strategischer Assetabbau auf Druck der EU Komission lässt kaum Kreditneu-geschäft zu Basel, 27 August 2009

  30. Kreditportfolio Eurohypo S.A. per30.06.2009 Aufstellung nach Ländern in mio EUR und Anzahl der Debitoren Mio EUR Anzahl Debitoren Basel, 27 August 2009

  31. Lettres de Gage Publiques: Deckungsstock Eurohypo S.A.per 30.06.2009 Nach internen Ratings* EUR 16.7 mrd Nach Land* EUR 16.7 mrd *Nach Swap Betrachtung Basel, 27 August 2009

  32. Lettres de Gage Publiques: Deckungsstock Eurohypo S.A.per 30. Juni 2009 Deckungsstock nach Währung* EUR 16.7 mrd Lettres de Gage Publiques nach Währung* EUR 14.8 mrd *Nominalbetrag nach Swap Zero bonds mit Zeitwert Basel, 27 August 2009

  33. Entwicklung Deckungsstock nach internem Rating und Überdeckung O/C • Breit diversifizierter Deckungsstock nach Ländern und Emittenten • Kreditengagements im investmentgrade Bereich • Überdeckung über das gesetzliche Mass hinaus Mio EUR Basel, 27 August 2009

  34. The McGraw•Hill Companies FitchRatings Ratingsper 30.06.2009 The McGraw•Hill Companies FitchRatings Basel, 27 August 2009

  35. Covered Bond Markt Luxemburg Mio EUR 34.358 4.00012% 3.512 10% 5.11715,% 5.90317% 15.826 46% • Gesundes Wachstum seit seiner Einführung mit neuen Emittenten und neuen Emissionswährungen • Eurohypo S.A. führender Emittent von Lettres de Gage • Gesetz wurde weiter modernisiert und aktualisiert Darstellung: Pre-Swap Betrachtung Zeros zum Endwert keine Beachtung von Kündigungsrechten Basel, 27 August 2009 Source: Company Data

  36. Novellierung des Luxemburger Pfandbriefgesetzesvom 21.10.2008 • Möglichkeit neuer Mobiliarpfandbriefe für Sachwerte, die in einem öffentlichen Register in der OECD geführt werden • Beleihungswert für private Immobilienfinanzierung auf 80% angehoben • Emissionsgrenze des 60-fachen Eigenkapitals aufgehoben • Einführung einer gesetzlichen Überdeckung von 2% der umlaufenden Pfandbriefe auf nominaler und barwertiger Basis • ABS können nach dem dem Lux. Gesetz deckungsfähig sein, wenn sie ein Mindestrating von AA-/Aa3 aufweisen und wenn:- 90% der verbrieften Aktiva selbst deckungsfähig sind, dann unbegrenzt - mindestens 50% der verbrieften Aktiva selbst deckungsfähig sind, dann ist ihr Anteil auf 20% des Deckungsstocks begrenzt Begrenzung des Anteils von nicht deckungsfähigen Aktiva im Deckungsstock auf 10% der Deckungsmasse Basel, 27 August 2009

  37. Disclaimer The information contained herein was prepared by Eurohypo which does not undertake to influence your opinion on the information contained herein. It is furnished for your information only. It is not an offer to buy, sell or hold any securities. Though the figures are generated carefully, no representation or warranty, expressed or implied, is made as to and no reliance should be placed on the accuracy, completeness or correctness of any information contained herein. Eurohypo shall not have any liability whatsoever for any loss howsoever arising from, related to or in connection with any use of any of the information contained herein. The investments discussed or recommended in any of these presentations may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advisers as they believe necessary. Be aware of the date of presentation and possible amendment thereafter. The information might not be amended or updated. Third persons may receive other or updated information, before it is made available to the use of this service. This presentation may be restricted by law in certain jurisdictions. Persons into whose possession this presentation comes are required to inform themselves about and observe any such restrictions. The information contained herein may not be used by any person in any such jurisdiction in which it is restricted by law. These materials are not an offer for sale of securities in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be sold in the United States absent registration or an exemption from registration under the Securities Act. Basel, 27 August 2009

  38. Contacts EUROHYPO AG Helfmann-Park 5 D - 65760 Eschborn Germany Franz-Josef Kaufmann Tel.: +49 – 69 – 136 – 81109 Head of Capital Markets Funding Commerzbank Group franz-josef.kaufmann@commerzbank.com Rainer Mastenbroek Tel.: +49 – 69 – 136 – 44883 Head of Covered Bond Funding Commerzbank Group rainer.mastenbroek@commerzbank.comLibor Vincent Tel.: +49 – 69 – 2548 – 26519 Head of Capital Market Communication libor.vincent@eurohypo.com EUROHYPO Europäische Hypothekenbank S.A. Airport Center, 5, Rue Heienhaff L - 1736 Senningerberg Luxembourg Reinolf Dibus Tel.: +352 – 263 – 455 - 204 Member of the Board ofManaging Directorsreinolf.dibus@eurohypo.com Peter H. Meyer Tel.: +352 – 263 – 455 - 300Head of ALM and Portfoliomanagementpeter-h.meyer@eurohypo.com Ralf Heilmann Tel.: +352 – 263 – 455 - 311 Head of Funding ralf.heilmann@eurohypo.com Basel, 27 August 2009

More Related