F Other disclosures
35. Capital requirements and regulatory indicators
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Total capital | 106,967 | 101,671 |
| Tier 1 capital | 93,565 | 87,272 |
| of which: Common Equity Tier 1 | 93,172 | 86,746 |
| Additional Tier 1 capital | 393 | 526 |
| Tier 2 capital | 13,402 | 14,399 |
| Total risk exposure | 685,401 | 642,352 |
| Common Equity Tier 1 capital ratio (percent) | 13.6 | 13.5 |
| Tier 1 capital ratio (percent) | 13.7 | 13.6 |
| Total capital ratio (percent) | 15.6 | 15.8 |
| Common Equity Tier 1 capital ratio incl. reserves pursuant to Section 340f HGB (percent)1 | 15.5 | 15.5 |
| Tier 1 capital ratio incl. reserves pursuant to Section 340f HGB (percent)1 | 15.5 | 15.6 |
| Leverage ratio (percent)2 | 7.0 | 6.9 |
| Leverage ratio incl. reserves pursuant to Section 340f HGB (percent)1,3 | 7.8 | 7.8 |
1 The balance of reserves pursuant to Section 340f HGB is based on the financial statements data of the institutions included as at the balance sheet date before additions and reversals within the scope of the 2019 and 2018 financial statements.
2 Disclosure of the leverage ratio of the bank-specific protection system using the transitional definition for Tier 1 capital pursuant toarticle 429 (2) CRR in conjunction with article 499 (1) CRR.
3 Disclosure of ratio after full introduction of the new CRR provisions, subject to the assumption of full reclassification and inclusion of reserves pursuant to Section 340f HGB as Tier 1 capital from a business point of view.
The disclosures refer to the bank-specific protection system (Cooperative Financial Network) and the relevant reporting date. The disclosures in relation to own funds and capital requirements are based on the results of the extended aggregated calculation (being implemented) in accordance with article 49 (3) CRR in conjunction with article 113 (7) CRR.
36. Financial guarantee contracts and loan commitments
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Financial guarantee contracts | 20,568 | 19,636 |
| Loan commitments | 97,117 | 87,811 |
| Total | 117,685 | 107,447 |
The amounts shown for financial guarantee contracts and loan commitments are the nominal values of the respective exposure.
37. Trust activities
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Trust assets | 761 | 923 |
| of which: trust loans | 52 | 52 |
| Trust liabilities | 761 | 923 |
| of which: trust loans | 52 | 52 |
38. Asset management by the Union Investment Group
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Fund assets | 327,830 | 284,649 |
| Other types of asset management | 54,606 | 50,083 |
| Unit-linked asset management | 2,206 | 1,687 |
| Institutional asset management | 10,350 | 9,961 |
| Advisory and outsourcing | 42,050 | 38,435 |
| Accounts managed by third parties | –14,228 | –11,362 |
| Total | 368,208 | 323,370 |
As at the balance sheet date, the Union Investment Group (through Union Asset Management Holding AG) had total assets under management of €368,208 million (December 31, 2018: €323,370 million). The fund assets comprise equity funds, fixed-income funds, money market funds, mixed funds, other securities funds, capital preservation funds, real estate funds, alternative investment funds and hybrid funds issued by Union Investment Group.
In addition, Union Investment Group has assets under management within the scope of institutional asset management, unit-linked asset management, and advisory and outsourcing. The fund volume of funds that have been issued by Union Investment Group but whose portfolio management has been outsourced is shown as a deduction. The definition of assets under management is based on the aggregate statistics from the Federal Association of German Fund Management Companies (BVI), Frankfurt/Main.
39. Leases
Finance leases with the Cooperative Financial Network as lessor
| Dec. 31, 2019 € million | |
|---|---|
| Gross investment | 1,641 |
| Up to 1 year | 576 |
| More than 1 year and up to 2 years | 420 |
| More than 2 year and up to 3 years | 295 |
| More than 3 year and up to 4 years | 177 |
| More than 4 year and up to 5 years | 91 |
| More than 5 yearse | 82 |
| Less unearned finance income | –94 |
| Net investment | 1,547 |
| Less present value of unguaranteed residual values | –9 |
| Present value of minimum lease payment receivables | 1,538 |
| Comparative information in accordance with IAS 17 Dec. 31, 2018 € million |
|
|---|---|
| Gross investment | 2,164 |
| Up to 1 year | 711 |
| More than 1 year and up to 5 years | 1,330 |
| More than 5 years | 123 |
| Less unearned finance income | –144 |
| Net investment | 2,020 |
| Less present value of unguaranteed residual values | –42 |
| Present value of minimum lease payment receivables | 1,978 |
| Up to 1 year | 642 |
| More than 1 year and up to 5 years | 1,225 |
| More than 5 years | 111 |
The VR Smart Finanz subgroup as well as DVB Bank Group are active as finance lessors in the Cooperative Financial Network. The entities of the VR Smart Finanz subgroup enter into leases primarily for machinery used in production as well as photovoltaics and solar thermal energy. Apart from office equipment, leases also refer to medical technology, motor vehicles and software. The entities in the DVB Bank Group primarily enter into leases for ships.
40. Changes in the contract portfolios held by Bausparkasse Schwäbisch Hall
| Not allocated | Allocated | Total | ||||
|---|---|---|---|---|---|---|
| Home savings sum (€ million) | Number of contracts | Home savings sum | Number of contracts | Home savings sum | Number of contracts | Home savings sum |
| Balance as at Dec. 31, 2018 | 7,753,588 | 290,052 | 582,374 | 15,645 | 8,335,962 | 305,697 |
| Additions in 2019 as a result of | ||||||
| New contracts (redeemed contracts)1 | 502,482 | 26,590 | – | – | 502,482 | 26,590 |
| Transfers | 20,090 | 632 | 536 | 14 | 20,626 | 646 |
| Allocation waivers and cancellations | 6,984 | 270 | – | – | 6,984 | 270 |
| Splitting | 141,357 | – | 33 | – | 141,390 | – |
| Allocations and acceptance of allocations | – | – | 384,354 | 9,800 | 384,354 | 9,800 |
| Other | 77,076 | 3,066 | 15 | 1 | 77,091 | 3,067 |
| Total | 747,989 | 30,558 | 384,938 | 9,815 | 1,132,927 | 40,373 |
| Disposals in 2019 as a result of | ||||||
| Allocations and acceptance of allocations | –384,354 | –9,800 | – | – | –384,354 | –9,800 |
| Reductions | – | –881 | – | – | – | –881 |
| Termination | –272,687 | –7,625 | –301,184 | –7,600 | –573,871 | –15,225 |
| Transfers | –20,090 | –632 | –536 | –14 | –20,626 | –646 |
| Pooling1 | –57,979 | – | – | – | –57,979 | – |
| Expiration | – | – | –109,324 | –2,802 | –109,324 | –2,802 |
| Allocation waivers and cancellations | – | – | –6,984 | –270 | –6,984 | –270 |
| Other | –77,076 | –3,066 | –15 | –1 | –77,091 | –3,067 |
| Total | –812,186 | –22,004 | –418,043 | –10,687 | –1,230,229 | –32,691 |
| Net addition/disposal | –64,197 | 8,554 | –33,105 | –872 | –97,302 | 7,682 |
| Balance as at Dec. 31, 2019 | 7,689,391 | 298,606 | 549,269 | 14,773 | 8,238,660 | 313,379 |
1 Including increases.
Volume of unredeemed contracts
| Home savings sum (€ million) | Number of contracts | Home savings sum |
|---|---|---|
| Contracts signed prior to Jan. 1, 2019 | 45,323 | 2,933 |
| Contracts signed in 2019 | 167,824 | 11,733 |
41. Changes in the allocation assets of Bausparkasse Schwäbisch Hall
| 2019 € million | |
|---|---|
| Additions | |
| Amounts carried forward from 2018 (surplus) | |
| Amounts not yet disbursed | 58,513 |
| Additions in 2019 | |
| Savings deposits (including credited residential construction bonuses) | 9,513 |
| Repayable amounts (including credited residential construction bonuses)1 | 1,139 |
| Interest on home savings deposits | 718 |
| Total | 69,883 |
| Withdrawals | |
| Withdrawals in 2019 | |
| Amounts allocated (if disbursed) | |
| Home savings deposits | 5,708 |
| Home savings loans | 1,151 |
| Repayment of deposits on non-allocated home savings contracts | 1,431 |
| Surplus of additions | |
| (Amounts not yet disbursed) at the end of 20192 | 61,593 |
| Total | 69,883 |
1 Repayable amounts are the portion of the loan principal actually repaid.
2 The surplus amounts allocated include:
a) undisbursed home savings deposits from allocated home savings contracts: €90 million.
b) undisbursed home savings loans from funds allocated: €2,955 million.
42. Cover statement for the mortgages and local authority loans extended by the mortgage banks DZ HYP and MHB
| Mortgage Pfandbriefe | Public-sector Pfandbriefe | |||
|---|---|---|---|---|
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
| Ordinary cover | 61,846 | 57,419 | 18,587 | 20,810 |
| Loans and advances to banks | 23 | 25 | 354 | 214 |
| of which: Mortgage loans | 23 | 25 | – | – |
| Local authority loans | – | – | 354 | 214 |
| Loans and advances to customers | 61,676 | 57,248 | 15,442 | 16,962 |
| of which: Mortgage loans | 61,676 | 57,248 | 42 | 53 |
| Local authority loans | – | – | 15,400 | 16,909 |
| Investments consisting of bonds and other fixed-income securities | – | – | 2,791 | 3,634 |
| Property, plant and equipment | 147 | 146 | – | – |
| Extended cover | 1,472 | 1,687 | 135 | 106 |
| Loans and advances to banks | – | – | 65 | 36 |
| Investments consisting of bonds and other fixed-income securities | 1,472 | 1,687 | 70 | 70 |
| Total cover | 63,318 | 59,1061 | 18,722 | 20,916 |
| Pfandbriefe requiring cover | –57,314 | –53,839 | –15,862 | –17,578 |
| Nominal excess cover | 6,004 | 5,267 | 2,860 | 3,338 |
| Present value of excess cover | 10,334 | 9,098 | 3,819 | 4,039 |
| Risk-related present value of excess cover | 10,058 | 8,544 | 3,208 | 3,529 |
1 Amount adjusted.
The present value of excess cover is higher than the nominal excess cover because it includes an interest component.
Maturity structure of mortgage Pfandbriefe and public-sector Pfandbriefe in issue
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Mortgage Pfandbriefe | 57,314 | 53,839 |
| ≤ 6 months | 2,214 | 2,549 |
| > 6 months and ≤ 12 months | 2,089 | 2,692 |
| > 12 months and ≤ 18 months | 2,391 | 2,173 |
| > 18 months and ≤ 2 years | 2,642 | 2,086 |
| > 2 years and ≤ 3 years | 4,872 | 3,463 |
| > 3 years and ≤ 4 years | 4,992 | 4,457 |
| > 4 years and ≤ 5 years | 3,805 | 4,390 |
| > 5 years and ≤ 10 years | 19,789 | 17,863 |
| > 10 years | 14,520 | 14,166 |
| Public-sector Pfandbriefe | 15,862 | 17,578 |
| ≤ 6 months | 951 | 690 |
| > 6 months and ≤ 12 months | 1,054 | 1,322 |
| > 12 months and ≤ 18 months | 755 | 1,005 |
| > 18 months and ≤ 2 years | 442 | 1,023 |
| > 2 years and ≤ 3 years | 728 | 1,265 |
| > 3 years and ≤ 4 years | 995 | 753 |
| > 4 years and ≤ 5 years | 1,048 | 992 |
| > 5 years and ≤ 10 years | 4,008 | 4,769 |
| > 10 years | 5,881 | 5,759 |
Fixed-interest periods of cover assets
| Dec. 31, 2019 € million | Dec. 31, 2018 € million | |
|---|---|---|
| Mortgage Pfandbriefe | 63,318 | 59,1061 |
| ≤ 6 months | 2,348 | 2,186 |
| > 6 months and ≤ 12 months | 2,463 | 2,320 |
| > 12 months and ≤ 18 months | 2,247 | 2,208 |
| > 18 months and ≤ 2 years | 2,647 | 2,549 |
| > 2 years and ≤ 3 years | 5,393 | 4,967 |
| > 3 years and ≤ 4 years | 5,662 | 5,446 |
| > 4 years and ≤ 5 years | 5,560 | 5,121 |
| > 5 years and ≤ 10 years | 21,766 | 20,537 |
| > 10 years | 15,232 | 13,772 |
| Public-sector Pfandbriefe | 18,722 | 20,916 |
| ≤ 6 months | 1,017 | 1,054 |
| > 6 months and ≤ 12 months | 619 | 1,114 |
| > 12 months and ≤ 18 months | 657 | 970 |
| > 18 months and ≤ 2 years | 669 | 654 |
| > 2 years and ≤ 3 years | 1,166 | 1,358 |
| > 3 years and ≤ 4 years | 1,135 | 1,173 |
| > 4 years and ≤ 5 years | 1,359 | 1,117 |
| > 5 years and ≤ 10 years | 4,644 | 5,093 |
| > 10 years | 7,456 | 8,383 |
1 Amount adjusted.
45 properties were in forced administration as at the reporting date (December 31, 2018: 57). The mortgage loans held as cover include past-due payments for interests to be paid in the amount of €1 million (December 31, 2018: €1 million).
43. Board of Managing Directors of the BVR
Marija Kolak (President)
Gerhard Hofmann
Dr. Andreas Martin
Berlin, July 1, 2020
National Association of German Cooperative Banks
BVR
Board of Managing Directors
Marija Kolak Gerhard Hofmann Dr. Andreas Martin