OLB Bank Company Presentation

OLB BankGeneral Presentation

At a glance

Operating throughout Germany Sustainable Strategy

With our strong and prestigious OLB and Bankhaus

Neelmeyer brands, we are a modern customer-

focused, financial institution with operations

throughout Germany.

We strive to find the correct financial solutions given

the current environment, with particular focus on the

expectations of our clients.

Our business strategy – a strong customer base,

solid refinancing sources including retail customer

deposits and Pfandbrief (covered) bonds, and

specialized staff – provides the basis for ensuring

that our success story will continue in the years to

come, more than 150 years after OLB was founded.

We attach particular importance in our client

business to the high level of competence of our

advisory services, and excellent multi-channel

accessibility (branch, telephone, video chat, online

and mobile banking).

Jan, 2022OLB Bank General Presentation 2

Our lines of business

We offer our clients integrated solutions from a single

source – with a competitive product palette in our

strategic lines of business:

Modern financial institution and Pfandbrief bank

OLB Bank General Presentation

Munich

Oldenburg

Bremen

Hamburg

Hanover

Frankfurt

Dusseldorf

Berlin

Ludwigsburg/

Stuttgart

Private Clients

Retail

Private Banking and Wealth Management

Freelancers

Corporates & SME

Corporates

SME

Football Finance

Specialized Lending

Acquisition Finance

Commercial Real Estate

Shipping

Solidly and sustainably positioned



Many long-standing

client relationships

Strong capital base with

over € 1.1 billion Tier 1 capital

Sustainably profitable

business model

Conservative risk policy

with a well diversified portfolio

Moody’s rating “Baa2 outlook stable”

supports the expansion of capital

market presence

Robust balance sheet structure

and stable refinancing base

6.5%7.6%

H1/2020 H1/2021

69.3%65.0%

H1/2020 H1/2021

226.7

238.9

H1/2020 H1/2021

Successful first half of 2021 for OLB despite Covid-19



Operating Income [€m]

Return on equity post tax

Cost-income ratio

Common Equity Tier 1 capital ratio

In accordance with local GAAP

12.2% 12.3%

12/2020 06/2021

Important figures and data at a glance


OLB’s strong equity position has us on a successful track


22.8

Total assets

As of 06/2021

in billions of €

65.0

Cost-income ratio

As of 06/2021

in %

81.1

Operating result before risk provisions

As of 06/2021

in millions of €

16.1

Customer loan book

As of 06/2021

in billions of €

1.2

On-balance-sheet equity

As of 06/2021

in billions of €

69.1

Profit before taxes

As of 06/2021

in millions of €

13.1

Total customer deposits

As of 06/2021

in billions of €

12.3

Common Equity Tier 1 capital ratio

As of 06/2021

in %

44.9

Net profit after tax

As of 06/2021

in millions of €

Important figures and data in detail


Key HGB earnings and figures as of June 30, 2021


HGB-Results (€m)01/01/2021

– 06/30/2021

01/01/2020

– 06/30/2020

Changes

(%)

Operating income 238.9 226.7 5.4

of which: net interest income 178.6 169.2 5.6

of which: net commission income 60.3 57.4 5.0

Operating expenses -155.3 -157.1 -1.2

Net other operating income (+)

and expenses (-)

-2.5 1.4 n/a

Risk provisions for lending business -2.8 -14.8 -81.2

Gain (+) / loss (-) on securities in the liquidity

reserve

-7.6 2.5 n/a

Net operating result 70.8 58.7 14.3

Other result / Extraordinary result -1.6 -2.5 n/a

Profit before taxes 69.1 56.2 23.0

Net profit after tax 44.9 37.0 21.2

Return on equity post tax 7.6% 6.5% n/a

OLB AG (€m, HGB)

Operating income

Operating expenses

Net profit after tax

1

2

3

1

2

3

226.7238.9

H1 / 2020 H1 / 2021

157.1155.3

H1 / 2020 H1 / 2021

37.044.9

H1 / 2020 H1 / 2021

1.2 0.2

1.6

0.4

3.6

2.8

13.1

0.6 0.3

2.5

3.4

2.7

13.3

Robust balance sheet structure – stable refinancing


Client deposits are stable and remain the most important strategic source of funding


OLB’s customer loan business is funded

entirely via retail deposits

The stable and sticky deposit base means

the OLB is not overly reliant on the capital

markets

OLB’s investment portfolio has been

constructed with a strong focus on the bank’s

liquidity reserve position. The portfolio is

almost exclusively comprised of public

sector bonds with excellent ratings and

bonds issued by the bank's securitization

vehicle Weser Funding

Utilization of the TLTRO III program has led

to substantial cash reserves

As at June 30, 2021, the LCR was at 154.3%Assets Liabilities

12.4

HighlightsBalance Sheet OLB AG as of June 30, 2021 (HGB €bn)

2.7

Liabilities to customers

Refinancing development programs

Liabilities to banks

Securitized liabilities

Subordinated debt

Equity and reserves per Sec. 340g HGB

Other items

Receivables from customers(own funds)

Other items

Cash reserve

Investment portfolio

Receivables from customers(development programs)

Receivables from banks

22.822.8

11.4% 11.8% 12.2% 12.3%

14.5% 14.1% 14.2% 14.2%

12/2018 12/2019 12/2020 06/2021

Robust balance sheet structure – solid capital ratios


Capital ratios well above minimum regulatory requirements


Highlights

OLB’s numbers are well in excess of the

minimum capital requirements laid out under

Basel III

The capital ratios remain at a level above

that set out by the BaFin for OLB under its

S-REP Process

The Bank‘s CET1 ratio improved to 12.3%

The Tier 1 capital ratio improved to 12.8%

OLB’s capital position provides a strong

platform for further business development

Development of required capital in accordance with HGB for OLB AG

In accordance with §10 KWG in conjunction with Art. 25 to 88 CRR

Aggregate capital ratio

Common Equity Tier 1

capital ratio

€m

Common Equity Tier 1 capital 966 1,042 1,056 1,095

Tier 1 capital 1,009 1,084 1,098 1,138

Risk assets 8,483 8,806 8,659 8,912

Tier 1 capital ratio 11.9% 12.3% 12.7% 12.8%

1 In accordance with the final SREP and Capital targets decision for 20202 Before planned capital retention of EUR 40m for H1 2021 which will lead to a CET1 ratio of 12.7%

Min. Total Capital Requirement1

11.38% Aggregate capital ratio

9.36% Tier 1 capital ratio

7.85% Common Equity Tier 1

capital ratio

2

OLB Bank’s management team



Peter Karst

Member of the

Management Board

Marc Kofi Ampaw

Member of the

Management Board

Stefan Barth

Chairman of the

Management Board

Giacomo Petrobelli

General

Manager

Dr. Rainer Polster

Member of the

Management Board

Our shareholder structure



Shareholder

characteristics

Strong financial basis

Long-term focus

No controlling interest

Global presence

Excellent reputation

Independent of each other

Pension fund with retirement and

comparable services for approx. 1.5 million

payers and recipients in public and higher

education

– headquartered in Texas, USA

Teacher Retirement System of Texas

Leading global asset manager

for equity, loan and real estate investments

– headquartered in Delaware, USA

Apollo Global Management

A specialist private investment

firm focused on private equity,

credit and unique situations

– headquartered in London, Great Britain

Grovepoint Investment Management

Strategic development of the Bank



Corporate Banking,

Specialized Lending

Retail Banking,

Corporate Banking

Wealth Management

and Private Banking

Retail partnership

platform and online

bankingPartnership platform

with W&W Group

1907“Fonds- und

Effektenmaklerbüro P.F.

Neelmeyer” was founded

1997Takeover of affiliate’s

“Geestemünder Bank AG”

operations

2005Acquired by “UniCredit

Bank AG”

2017Acquired by BKB Bank

1869Founded by Frankfurt-

based banking house

“Erlanger & Söhne”

1933Takeover and merger with

“Oldenburgische Spar-

& Leihbank”

1978Majority interest acquired

by “Dresdner Bank AG”

2008Allianz Group takes

direct ownership

2018Acquired by BKB Bank

and subsequently delisted

from stock exchange

2018Merged with OLB

2014Renamed under new

ownership as “Bremer

Kreditbank AG

(BKB Bank)”

1999Renamed as “KBC Bank

Deutschland AG”

1982Majority of stock acquired

by “Kredietbank NV”,

Brussels

1945Merger with “Bankverein für

Nordwestdeutschland” to form

“Bankverein Bremen”

1863Foundation as an advance

payment association

(“Vorschussverein”)

2019Merged with OLB

1968Foundation

of the bank

Stable ownership structure

2018Merged with OLB

2018OLB “new” after merger

with BKB and Bankhaus

Neelmeyer

Oldenburgische Landesbank AG (OLB), Bremer Kreditbank AG (BKB) and Bankhaus Neelmeyer AG

(BHN) merged during 2018, OLB and Wüstenrot Bank AG Pfandbriefbank in 2019 to form:

Working for our clients regionally, nationwide and beyond


In the branch, in the office, online, mobile and by telephone

… personally and digitally accessible from anywhere


Munich

OldenburgHamburg

Hanover

Frankfurt

Dusseldorf

Berlin

Bremen

Ludwigsburg

OLB Branch Office Hamburg

Ferdinandstraße 12

20095 Hamburg

Tel.: +49 40 3020020

OLB Branch Office Berlin

Lietzenburger Straße 69 | 10719 Berlin

Tel.: +49 30 203070

OLB Branch Office Munich

Ottostraße 13 | 80333 Munich

Tel.: +49 89 24209780

OLB Branch Office Frankfurt

Theodor-Heuss-Allee 108

60486 Frankfurt am Main

Tel.: +49 69 7561930

OLB Branch Office Hanover

Hildesheimer Straße 265-267

30519 Hanover

Tel.: +49 511 65505100

OLB Oldenburg (Headquarters)

Stau 15/17

26122 Oldenburg

Tel.: +49 441 2210

OLB Branch Office Ludwigsburg/Stuttgart

Carl-Benz-Straße 20 | 71463 Ludwigsburg

Tel.: +49 7141 8661

OLB Branch Office Dusseldorf

Königsallee 106 | 40215 Dusseldorf

Tel.: +49 211 130750

Bankhaus Neelmeyer

Am Markt 14 –16

28195 Bremen

Tel.: +49 421 36030

OLB Branch Office Bremen

Wachtstraße 16

28195 Bremen

Tel.: +49 421 36840

Core business

area Weser-Ems

(numerous

locations)

Strategic lines of business offer a broad range of services



Private Customers

› Fully loaded online in addition to bricks and

mortar retail banking in north-western

Germany

› Digital nationwide online proposition

including exclusive access to the nationwide

distribution network of W&W Group

› Nucleus for Private Banking & Wealth

Management proposition with focus in north-

western Germany

Corporates & SME

› Small-scale business banking in north-

western Germany

› Fully loaded corporate banking nation-wide

with selective business in Austria and

Switzerland

› Football Finance: Primarily transfer financing

with focus on the TOP 5 financially strong

football leagues in Europe

Specialized Lending

› Acquisition Finance: Arranging and

structuring of debt financing with focus on

LBOs for SMEs in Germany, Austria and

Switzerland

› Commercial Real Estate: Financing for

construction firms and developers

› Shipping: Selective new business with

well-known clients focussed on small & mid-

sized sea vessels and Multi-purpose vessels

Private Customers: OLB is transforming itself into nationwide, customer oriented bank, with strong presence in Weser-Ems



Business Area Private Clients

Includes: Private clients, corporate clients and freelancers as well as private banking and wealth

management

16 centers of expertise throughout the north-west

Advisory and support services via our branch

network and the new Oldenburg Advisory Center

Appropriate products and up-to-date services

in parallel via online and mobile sales channels

Bankhaus Neelmeyer represents highly

specialized competence in private banking

and wealth management

Continued strong

presence in the core

business area of

Weser-Ems and …

… operations across

Germany with

distribution partners

and brokerage options

Mobile Personal Telephone

Mail

Focus on the

customer Chat

Online By post Video

Private Customers: The Oldenburg Advisory Center (BCO) combines digital and personal banking



BCO

Personal

Banking

Digital

Banking

BundesligaPremier

League

Primera

División

Ligue 1Serie A

Corporates & SME: Sales strength in the Northwest, across Germany and in selected European locations



Focus on traditional lending business

with medium-sized corporate customers

Positioning is based on the location of potential

clients, aligned with their target profile and size

SME: Weser-Ems Region

Focus on large corporate customers

Tailor-made consulting in nine branches

with the necessary product palette

Corporates: Across Germany

Focus on the TOP 5 financially strong football

leagues in Europe

Financing of football clubs

Loan financing or purchase of receivables

Corporates: Football Finance

Hamburg

Hanover

Oldenburg

Bremen

Berlin

Munich

Ludwigsburg/

Stuttgart

Frankfurt

Dusseldorf

Weser-Ems

Region

Specialized lending: Supplementing OLB’s business model in the manufacturing business



Active for more than a decade as a leading

structured finance provider in the German speaking

LBO market

Our focus is on arranging and structuring debt

financing for the acquisition of medium-sized

companies in Germany, Austria and Switzerland

and selected other Western European markets

Acquisition Finance

Well established for over ten years in commercial

real estate financing in the German market, as well

as being active on the Dutch market for the last

three years

Equally focused on short-term bridge financing

for property developers and project developers,

as well as medium to long-term investor financing

Commercial Real Estate

Extensive, sector-specific know-how in this market

segment, including risk analysis and risk monitoring

systems

Selective, conservatively acquired new business

involving freight rate-dependent vessels (exclusively

multi-purpose vessels)

Shipping

Use of targeted risk/return-oriented growth initiatives in specialized financing areas

Expansion of market share and earnings potential on the basis of existing long-term business relationships

Core competence primarily in individual and personal support – from classic financing options to syndicated financing or promissory note loans

OLB enjoyed a successful debut on the Debt Capital Markets in 2021


Both our Pfandbrief and AT1 issuance were oversubscribed


EUR 350m Pfandbrief (March 2021) EUR 100m AT1 (July 2021)

The OLB cover pool reached over EUR 500m in size at the beginning of

the year, allowing the bank to issue a Pfandbrief of subbenchmark size

(ie. minimum EUR 250m) in addition to the privately placed notes at the

start of 2019.

Moody‘s rated the bank‘s cover pool at Aa1.

After initially expecting to issue EUR 250m in notes, the bank had enough

orders to issue EUR 350m at a lower price than initally expected, allowing

the bank to issue at a yield of 0.06%.

Investors included sovereign wealth funds, insurers, banks and building

societies from across Europe.

This note is listed and freely tradeable on the secondary capital markets.

OLB took advantage of the prevailing market conditions to make its debut

in the AT1 space in June 2021.

Issuing these notes helped the bank fill that particular open bucket within

the capital structure.

Management undertook a series of virtual roadshows to showcase the

OLB name across Europe.

Interest in the notes was very strong for a bank of OLB‘s size, with

demand of over EUR 150m. The bank therefore decided to issue EUR

100m of the AT1 notes at a very competitive price.

OLB‘s excellent work in the Capital Markets in the first half 2021 not only underlines the bank‘s potential but also the attractiveness of the bank‘s investment

proposition. OLB intends to remain a reasonably frequent issuer.

Disclaimer


All details and information contained in this presentation have been carefully researched and checked by Oldenburgische Landesbank AG.

However, we assume no liability for the accuracy, completeness and topicality.

In particular, the information in this document does not constitute an offer, recommendation, investment research or investment advice.

For additional information on all products mentioned in this presentation, please contact your advisor.

This document is protected by copyright. You may use it for your own information, but you may not pass it on to third parties or make public

use of it in any form.


OLB Bank Company Presentation

Documents

Transcript of OLB Bank Company Presentation