Geschäftsbericht 2012, englisch

Management report – münchener Hypothekenbank eg l annual Report 201224 Our ten-year Jumbo Mortgage Pfandbrief issue was honoured with the “Euro Deal of the Year” award from The Cover / Euroweek, an international trade magazine. The award is decided by an international jury of investors, investment banks and issuers. MünchenerHyp was nominated in five categories thereby receiv- ing the highest number of nominations of all German banks. We were also top-ranked in other categories and came in second in three categories and third in one. Our success at the Covered Bond Awards underlines Münchener Hypothekenbank’s high reputation in the capital market. During the 2012 financial year we obtained total refinancing funds of € 7.8 billion with covered funding accounting for € 2.3 billion raised with Mortgage Pfandbriefe and € 3 billion via Public Pfandbriefe. Sales of uncovered securities for refi- nancing amounted to € 2.5 billion. The high amount of inflows € 8.5 billion from our refinancing business resulted in a net sales figure of minus € 0.7 billion. Rating Rating agencies further raised their creditworthiness require- ments in light of Europe’s continuing sovereign debt crisis. This was the reason behind Moody’s decision in July 2012 to also lower their rating for MünchenerHyp’s financial strength and change their outlook to “negative”. Ratings for our uncovered liabilities and Pfandbriefe remained unchanged, which meant that this step did not have any noticeable effects on our refi- nancing conditions. As noted in the previous section, we were even able to place two large-volume Public Pfandbriefe at his- torically low prices after Moody’s decision. On an overall basis we continue to have good ratings in com- parison to our peers. Current ratings at a glance: RatingOutlook Public Pfandbriefe Aaa Mortgage Pfandbriefe Aaa Uncovered liabilities A2 negative Fundamental financial strength D negative Short-term liabilities Prime-1 Moody’s evaluation of MünchenerHyp’s strengths and weak- nesses remained unchanged. The rating agency viewed our loan portfolio favourably as they regarded it as being widely diver- sified in comparison to other Pfandfbrief banks’ loan portfolios. They also considered MünchenerHyp’s risk profile to be good as our mortgage lending value ratios are moderate in compar- ison to the figure noted for the overall market. Furthermore, Moody’s also viewed our close collaboration with the Coop- erative Financial Network as a favourable factor. In contrast, Moody’s commented critically on the Bank’s current profita- bility as well as its ability to fulfil future Basel III equity capital requirements. The complete Moody’s document, as well as additional infor- mation regarding our ratings, is available at MünchenerHyp’s website. Overall Legal conditions Basel III Following the successful introduction of the Internal Ratings Based Approach (IRBA) for the first segments in 2011, additional rating systems were prepared for regulatory approval in 2012. We anticipate that widened IRBA coverage will further ease our equity capital requirements. This makes the IRBA project an important measure that MünchenerHyp will use to define its upcoming equity capital requirements. Our next step will be to obtain acceptance of different commer- cial rating systems in the second quarter of 2013 based on the so-called “reference point” pursuant to the terms of Art. 65 of the German Solvency Regulation (SolvV). Based on current plans, the complete implementation of IRBA should be finalised by no later than the end of 2016. By this date we plan to have reached the so-called “exit threshold” pursuant to Art. 66 SolvV. We voluntarily participate in the Basel Committee on Banking Supervision (BCBS) monitoring of Basel III, whereby key figures like the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) are calculated several times a year. The insights gained from our participation make it possible to assess the effects of the future binding minimum standards before they become legal requirements and, if necessary, make adjustments

Geschäftsbericht 2012, englisch

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