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Press Officer

Phone: +49 89 5387 - 314

Press Releases

MünchenerHyp increases results and strengthens market position

02.04.2014 - Münchener Hypothekenbank posted notably higher results for the 2013 business year.

Net interest income less commissions improved by 20 percent over the previous year’s figure to € 94.3 million. Results from operations after making provisions for risk more than doubled to € 21.2 million while net income rose to € 6.7 million. “The results show that our growth strategy is gaining traction. We once again made significant progress towards realising our goal of sustainably strengthening MünchenerHyp’s earnings power," noted Dr. Louis Hagen, Spokesman for the Münchener Hypothekenbank’s Board of Management, during the Bank’s annual results press conference today in Munich.

The Bank’s successful new mortgage business was a key reason behind the improved results and has been sustainably expanded in recent years. New business results were again at a high level in 2013 despite the intensive competition in the property financing market. MünchenerHyp made € 3.6 billion in mortgage loans in 2013 even though the volume of new residential property financing business declined slightly to € 2.9 billion. “Currently we are seeing that competition in the residential property financing market is being increasingly driven by lending conditions. We are not, however, interested in growth at any price. Margins also have to be adequate,” said Dr. Louis Hagen. New business results recorded in the commercial property financing area of business rose by 12 percent to € 740 million. 

The Bank’s risk situation remained unchanged at a stable level. Provisions made for risk were at a low level.

During the previous business year MünchenerHyp was able to tap the capital market for refinancing funds at very favourable conditions. The Bank issued four large-volume Mortgage and Public Pfandbriefe over the course of 2013. Investor demand was very high for all of these issues. MünchenerHyp‘s high standing with international investors was underlined when the Bank was honoured with the Best Global Issuer prize of  Pfandbriefe and other covered bonds by “The Cover,“ an international financial magazine.

As of December 31, 2013 total assets had declined by € 1.7 billion to € 34.9 billion. The Bank’s portfolio of mortgage loans rose further by € 0.5 billion to € 21.5 billion, of which about three-quarters represent financing within Germany. The volume of outstanding loans with the public-sector and banks fell in accordance with the Bank’s business and risk strategy from € 12.1 billion   to € 10.3 billion.

As a result of its conservative business model, MünchenerHyp already has a very solid capital base today. At the end of 2013 the Bank’s core capital ratio increased substantially to 11.7 percent (previous year 9.1 percent), while the total capital ratio rose to 16.7 percent (previous year 13.5 percent). The common equity Tier 1 capital ratio at December 31, 2013 was 6.3 percent (previous year 5.0 percent).

MünchenerHyp will further strengthen its level of common equity Tier 1 capital during the current business year. As the Bank will supervised by the European Central Bank in the future, it hat to meet a common equity Tier 1 capital ratio of 8 percent as of November 2014. To achieve this the Bank is currently engaged in attracting additional paid up capital, especially from within the Cooperative Financial Network. The bank is striving to attain € 240 million in additional paid up capital, which includes creation of a buffer beyond the required 8 percent. “Due to the response we have seen thus far in the Cooperative Financial Network, we are convinced that we will achieve this goal in the coming months," stated Dr. Louis Hagen.

Based on the results of the successful business year, the Board of Management and the Supervisory Board will propose to the Delegates Meeting that a dividend of 3.25 percent per share be approved for distribution.

MünchenerHyp will continue on its growth course in 2014. “The business environment is right for us. Demand for property financing – both for residential and commercial property – is very likely to remain high. For this reason we are confident that we will be able to further expand our position in the market," said Dr. Louis Hagen. Furthermore, the Bank also intends to further improve its net income in 2014.

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Moody’s raises outlook for ratings of MünchenerHyp’s uncovered liabilities and fundamental financial strength to stable

03.03.2014 - The rating agency Moody’s has raised the outlook for its ratings for uncovered liabilities (A2) and fundamental financial strength (D) of Münchener Hypothekenbank eG from negative to stable.

In addition, the Prime-1 rating for the Bank’s short-term liabilities was confirmed.

Moody’s justified this step by noting that MünchenerHyp had strengthened its level of equity capital in 2013. “Last year we were able to increase our common equity Tier 1 capital by about € 90 million,” said Dr. Louis Hagen, Spokesman for the Münchener Hypothekenbank’s Board of Management. 

The rating agency further noted that the risk content of the Bank’s loan portfolio had improved. The Bank had continued to reduce loans originated in countries within the eurozone that had been harder hit by the debt crisis, as well as with banks located in these countries. In addition, the Bank had further reduced its portfolio of loans originated in the USA. 

In addition, Moody’s pointed out that MünchenerHyp had earned a high reputation in the capital market as an issuer of Pfandbriefe and thus had a correspondingly high level of refinancing strength. Dr. Hagen further noted that: “This is also reflected by the fact that we were elected as the best international Pfandbrief issuer by our investors and other market participants.”

The firm ties and support within the Cooperative Financial Network were also favourably acknowledged by the agency.

“We are pleased that our efforts to strengthen MünchenerHyp to meet future challenges have been honoured. The raised outlook is motivation for us to further improve our ratings”, said Dr. Hagen.

Moody’s ratings for MünchenerHyp’s Mortgage and Public Pfandbriefe remained unchanged with the agency’s top rating of Aaa.

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MünchenerHyp successfully remains on course

28.10.2013 - Münchener Hypothekenbank eG announced today that its earnings situation improved substantially through the end of the third quarter 2013 .
The Bank reported that its net income figure rose by 13 percent over the comparable figure for the first nine months of the previous year to € 106.0 million, while net interest income less commission income increased by 17 percent in the same period to € 68.6 million. “The favourable development of earnings consolidated this year. Based on the good new business results we posted in previous years we are confident that we will be able to further improve our earnings situation,” said Dr. Louis Hagen, Spokesman for the Münchener Hypothekenbank’s Board of Management.

New business results were at the same high level as noted in previous years. By the end of September the Bank had made new mortgage commitments of over € 2.6 billion. New business noted for financing residential property declined slightly to € 2.1 billion while commitments to finance commercial property rose by about € 70 million to € 544 million. MünchenerHyp continued to be very cautious in making new loans to the public sector and banks, which amounted to € 283 million as of September 30, 2013.

On the funding side of business, MünchenerHyp once again issued a new benchmark Pfandbrief in the third quarter: a Public Pfandbrief with a volume of over € 625 million, a term of five years, and a spread of five basis points below the mid-swap rate. Furthermore, due to strong investor demand the bank increased its previous 15-year Mortgage Pfandbrief issue with a volume of over € 500 million by an additional € 250 million with improved conditions. In September MünchenerHyp was honoured for its successful Pfandbrief issues with the “Best Global Issuer" and “Best Issuer" of covered bonds by “The Cover”. “We are very happy to have received these awards because they confirm that the market views us as a very solid and stable bank and that our issuing policy is honoured by investors,” explained Dr. Louis Hagen.

Total assets recorded at the end of the third quarter amounted to € 35.6 billion or about € 1 billion less than noted at the end of 2012. The Bank was able to expand its portfolio of mortgage loans by about € 400 million during the same period of time to the current volume of € 21.4 billion. In contrast, the Bank’s lending portfolio with the public-sector and banks continued to decrease further as planned.

The risk situation in the Bank’s property finance business remains very satisfactory. Results from operations after making provisions for risk rose by € 8.1 million to € 14.7 million. After deduction of tax expenses MünchenerHyp’s pro rata temporis net income figure for the year rose by 3.6 million to € 9.4 million.  MünchenerHyp’s capital levels continued to improve further as the Bank’s core capital ratio rose to 10.4 percent at the end of the third quarter while the Bank’s total capital ratio had increased to 15.1 percent.

Dr. Louis Hagen summed up the review by stating that: “We are very satisfied with our current interim results for 2013 and expect that we will be able to continue this successful development over the remaining months of the year.”

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MünchenerHyp public sector Pfandbrief benchmark attracts high quality demand

30.09.2013 - Münchener Hypothekenbank eG has successfully launched its third Pfandbrief benchmark this year.

The public sector Pfandbrief (ISIN DE000MHB11J1) has a volume of € 625 million and a tenor of 5 years. The price has been fixed at 5bp through mid-swaps. "This is the tightest spread in the covered bond market since the beginning of the year", says Rafael Scholz, head of treasury at MünchenerHyp. The issue comfortably offsets parts of the redemption of a maturing public sector Pfandbrief on a same-day basis.

The issue has found strong demand mainly driven by central banks buying 44 percent of the issuance volume followed by banks and asset managers. 53 orders from 13 countries have been allocated.

Credit Suisse, Deutsche Bank, DZ Bank, Helaba, Nomura and NordLB were chosen as lead managers for the transaction. The Pfandbrief will receive Moody's highest rating of Aaa.

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MünchenerHyp voted best international issuer of covered bonds

20.09.2013 - Münchener Hypothekenbank eG was voted the best international issuer of covered bonds at this year’s “The Cover Awards” in Barcelona, receiving the prize for “Best Global Issuer 2013”.

It also won the “Best Euro Issuer 2013” award for the best issuer of covered bonds in euros.

“As a Pfandbrief bank, we are delighted and honoured to win this prestigious award. At the same time, it is an incentive for us to maintain our wholehearted commitment to our investors,” said Dr. Louis Hagen, Spokesman of MünchenerHyp’s Board of Management, during a free moment at the awards ceremony.

MünchenerHyp was also nominated in the “Euro Deal of the Year” category, where it achieved second place. In the previous year, MünchenerHyp had been nominated in five categories, winning just the “Euro Deal of the Year” award.

The winner of “The Cover Awards” is decided by a survey of international investors, investment banks and issuers carried out each year by the international specialist magazine The Cover/EuroWeek.

“The faith that our investors have shown in us is a great vote of confidence in our issuing policy, and also reinforces the need for us to maintain the high quality of our Pfandbriefe,” said Rafael Scholz, Head of Treasury at MünchenerHyp.

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