“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 Real Estate

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 2024
H1 2023
Total Income
98
95
Loan loss provisions
-50
-41
OpEx & regulatory costs
-46
-46
Net income after taxes
2
6
NIM in bps
252
230
Risk costs (loan loss prov.– %)2
-1.29
-1.05
CIR in %
46
43
RoE³ in %
0.5
2.0
Gross new business in bn €
0.3
0.7

1) For further details on P&L please refer to the Segment Reporting | 2) Risk Costs (LLP / b/s) | 3) RoE after taxes based on a 13%-ratio of invested CET1 capital as reported

Rating

distribution in %

H1 2024

YE 2023

Investment Grade

0.3
0.4

6-9

0.2
0.6

10-15

0.8
0.1

Default

0.7
0.9
See portfolio details