“Higher interest rates and the inflationary environment provide for a challenging real estate market, in which we will have a focused approach.”

Peter Axmann, Head of Business Unit

Real Estate

■ Highly recognized German real estate specialist with strong market and client coverage – franchise has view on ~1/3 of all new German CRE lending opportunities ■ Financing of existing properties, refurbishments and developments ■ Positioning to grow as ESG transition leader given expertise in refurbishments and developments ■ HCOB differentiation through tailored offerings and entrepreneurial view on value-add deals ■ Experienced market specialists with deep CRE expertise & experience enable above market risk-adjusted returns

Financials1

in € mn

H1 2023
H1 2022
Total Income
94
90
Risk costs (expected loss)²
-5
-4
OpEx & regulatory costs
-46
-39
Net income after taxes
34
37
NIM in bps
227
225
Risk costs (expected loss - %)³
-0.14
-0.10
CIR in %
43
38
RoE4 in %
11.0
11.8
Gross new business in bn €
0.7
0.7

1) For further details on P&L please refer to the Segment Reporting in the appendix | 2) Expected loss based on PD/LGD approach, for loan loss provisions according to IFRS (P&L, B/S) please refer to the Segment Reporting | 3) Risk Costs (expected loss / b/s) | 4) RoE after taxes based on a 13%-ratio of invested CET1 capital as reported

Rating

distribution in %

H1 2023

YE 2022

Investment Grade

0.9
0.6

6-9

0.8
0.4

10-15

0.2
0.8

Default

0.1
0.1
See portfolio details