“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

2024
2023
Total Income
207
209
Loan loss provisions
-73
-177
OpEx & regulatory costs
-97
-99
Net income after taxes
30
-53
NIM in bps
264
257
Risk costs (loan loss prov.– %)2
-0.95
-2.29
CIR in %
45
43
RoE³ in %
4.4
-8.3
Gross new business in bn €
1.0
1.6

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

Rating

distribution in %

2024

2023

Investment Grade

0.1
0.4

6-9

0.2
0.6

10-15

0.8
0.1

Default

0.8
0.9
See portfolio details