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Press Releases

MünchenerHyp crowned Most Innovative Issuer of Covered Bonds

20.05.2015 - Münchener Hypothekenbank eG has received another accolade for the world’s first sustainable Mortgage Pfandbrief (ESG Pfandbrief), coming top of the Innovation category at the Covered Bond Report Awards for Excellence 2015 in Frankfurt.

In granting the award, the panel acknowledged that MünchenerHyp and its ESG Pfandbrief have played a leading role in developing a market for sustainable covered bonds.

“We are very pleased with this important recognition of our commitment to sustainable Pfandbriefe. The market for sustainable securities is set to grow considerably again this year, with the Pfandbrief ideally placed to play a key role. I think this clearly demonstrates the substantial demand for our ESG Pfandbrief”, said Dr. Louis Hagen, Spokesman of MünchenerHyp’s Board of Management.

The Covered Bond Report Awards for Excellence are presented every year by the prestigious British specialist journal of the same name.

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MünchenerHyp expands dynamically and strengthens capital resources

14.04.2015 - Münchener Hypothekenbank eG recorded further growth in almost all of its areas in the 2014 business year.

The Bank’s new business results set a new record and totalled € 4.4 billion or 23 percent more, which was greater than expected. This increase meant that the Bank was able to once again significantly expand its results based on the growth it recorded in previous years. “Our new business was the engine driving our growth course during the 2014 business year. Despite numerous regulatory burdens we were able to notably improve our market position. These are good prerequisites for MünchenerHyp to advance even further“, said Dr. Louis Hagen, Spokesman for the Münchener Hypothekenbank’s Board of Management, during today‘s annual results press conference in Munich.

Private residential property financing recorded particularly dynamic growth. The Bank posted growth of 28 percent in this area of business, which amounted to about € 3.4 billion. The majority of the strong increase seen in 2014 was generated by business brokered by banks within the Cooperative Financial Network. New business in the area of commercial property finance – including the Bank’s financing business with housing companies – advanced by 8 percent to about € 1.1 billion. The risk situation in the Bank’s credit business did not change and remained stable. Provisions made for risks remained moderate.

MünchenerHyp’s refinancing needs were sharply lower in 2014 as less paper matured during the year. We obtained a total of € 3.4 billion in refinancing funds from the capital markets via covered and uncovered securities. The Bank very successfully placed two large volume issues during the year. One of these was a sustainable Mortgage Pfandbrief, which marked the world premiere for this category of Pfandbrief in the capital market. Investor response to the new kind of Pfandbrief was enormous. Since then the new issue has received numerous awards.

Total assets rose by € 1.4 billion to € 36.3 billion as of December 31, 2014. The portfolio of mortgage loans grew by € 2 billion to € 23.4 billion, of which domestic residential property loans alone accounted for € 1.9 billion. In accordance with the Bank’s business and risk strategy, the portfolio of outstanding loans to the public-sector and banks decreased from € 10.3 billion to € 9.4 billion.

The favourable development of new business recorded in previous years also strengthened MünchenerHyp’s earnings situation as net interest income surged by almost 19 percent to € 170.6 million in 2014. The good new business results are also linked to higher commissions paid. Nevertheless, net interest income and net commission income gained by 17 percent to € 110.5 million. Total administrative expenses rose by € 8 million to € 81.5 million. The increase was primarily driven by significantly expanded regulatory requirements. Results from operations after deducting provisions for risk soared by 30 percent to € 26.8 million. After allocating € 5.4 million to contingency reserves and deducting € 5.2 million for taxes, annual net income amounted to € 16.1 million (previous year: € 6.7 million).

MünchenerHyp made a substantial improvement of its level of equity capital in the 2014 business year. Above all, this took place to meet the European Central Bank’s requirements for common equity Tier 1 capital for banks which are under its direct supervision. To achieve this objective MünchenerHyp raised capital by selling shares in the cooperative for a total of € 415 million. As a result, the Bank’s common equity Tier 1 capital ratio improved to 12.5 percent (previous year: 6.9 percent) on December 31, 2014, while its core capital ratio rose to 14.2 percent (previous year: 11.7 percent) and its total capital ratio climbed to 18.3 percent (previous year: 16.7 percent). “Our level of equity capital is more than sufficient. We very clearly meet the minimum regulatory requirements and in addition have enough scope to continue on our course of growth,” said Dr. Louis Hagen.

MünchenerHyp plans to further expand its new business during the current business year as demand for property financing remains high. Dr. Hagen further noted that, “currently we are primarily concerned about the proliferation of regulatory requirements, and especially their impact on us as a mid-sized financial institution. We plan to offset the related burdens by further increasing MünchenerHyp’s earnings power“. For this reason the Bank is also striving to achieve a further increase its net interest income.

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Münchener Hypothekenbank extends the Board of Management contract of Michael Jung

14.04.2015 - The Münchener Hypothekenbank eG Supervisory Board has extended the Board of Management contract of Michael Jung (50) until 2020. The decision reflects the Supervisory Board’s absolute confidence in Michael Jung.
“We are pleased that in view of MünchenerHyp’s successful development over the past years, we can ensure continuity of the Board of Management team by extending Mr. Jung’s contract“, said Konrad Irtel, Chairman of Münchener Hypothekenbank’s Supervisory Board.

The members of Münchener Hypothekenbank’s Board of Management are: Dr. Louis Hagen, Spokesman and Head of Bank Strategy, Bernhard Heinlein, Head of Markets, and Michael Jung, Head of Transaction Management.

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MünchenerHyp becomes Climate Bonds Initiative partner

26.03.2015 - Münchener Hypothekenbank eG is strengthening its commitment to sustainable capital investments by becoming a Climate Bonds Initiative partner.

“The market for sustainable Pfandbriefe and other covered bonds has tremendous potential. The Climate Bonds Initiative has contributed a great deal towards the development of this market and bolstering awareness for sustainable capital investments. Working together we aim to further advance development“, said Rafael Scholz, Head of Treasury at MünchenerHyp. Last year MünchenerHyp issued the world’s first sustainable Mortgage Pfandbrief (ESG Pfandbrief).

Sean Kidney, CEO of the Climate Bonds Initiative, stated that “MünchenerHyp showed that economic objectives can go hand-in-hand with a commitment to the concept of sustainability. The partnership with the Climate Bonds Initiative sends an important signal for the further development of the market for green and sustainable bonds.”

The Climate Bonds Initiative is a non-profit organisation focused on strengthening awareness for the importance of green bonds in the international capital markets and advocates the development of trustworthy standards for this investment class.

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Enthusiastic Demand Seen for MünchenerHyp’s Benchmark Mortgage Pfandbrief

10.03.2015 - Münchener Hypothekenbank eG’s first benchmark issue of the year met with enthusiastic investor demand.

The issue with a volume of € 750 million was oversubscribed by almost three times as orders for € 2 billion were received within a short period. The Mortgage Pfandbrief has a term of 10 years and achieved a price of 14 basis points below the mid-swap rate – this is the highest discount for risk ever in this maturity segment. The Pfandbrief carries a coupon of 0.5 percent.

“The unusually strong investor interest for this issue shows that safety and quality, above all else, are in demand in the current interest rate environment. And these are the characteristics that distinguish MünchenerHyp’s Pfandbriefe“, said Dr. Louis Hagen, Spokesman for the Münchener Hypothekenbank’s Board of Management.

The investor group was broadly diversified as 70 orders from 16 countries were received. As expected, German investors represented the vast majority of incoming orders and accounted for 70 percent of the issue’s volume. Buyers were primarily banks as they subscribed to about half of the issue’s volume followed by central banks (32.9 percent), investment funds and insurance companies (18.5 percent).

The transaction was accompanied by Crédit Agricole, DZ BANK, HSBC and LBBW. The rating agency Moody’s has given its highest rating of Aaa to MünchenerHyp’s Mortgage Pfandbriefe.

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