F Other disclosures
39. Capital requirements and regulatory indicators
| Dec. 31, 2023 € million | Dec. 31, 2022 € million | |
|---|---|---|
| Total capital | 130,452 | 121,288 |
| Tier 1 capital | 125,276 | 116,6891 |
| of which: Common Equity Tier 1 | 124,994 | 116,4631 |
| of which: Additional Tier 1 capital | 282 | 226 |
| Tier 2 capital | 5,176 | 4,6001 |
| Total risk exposure | 803,051 | 775,909 |
| | ||
| Common Equity Tier 1 capital ratio (percent) | 15.6 | 15.01 |
| Tier 1 capital ratio (percent) | 15.6 | 15.01 |
| Total capital ratio (percent) | 16.2 | 15.61 |
| | ||
| Leverage ratio (percent) | 8.0 | 7.4 |
1 Amount restated
The capital ratios as well as the leverage ratio have been calculated on the basis of IFRS-based rules. The disclosure of the consolidated leverage ratio of the bank-specific protection system is determined using the transitional definition for Tier 1 capital pursuant to article 429 (2) CRR in conjunction with article 499 (1) CRR.
40. Financial guarantee contracts and loan commitments
| Dec. 31, 2023 € million | Dec. 31, 2022 € million | |
|---|---|---|
| Financial guarantee contracts | 24,067 | 24,039 |
| Loan commitments | 106,354 | 126,765 |
| Total | 130,421 | 150,804 |
The amounts shown for financial guarantee contracts and loan commitments are the nominal values of the respective exposure.
41. Trust activities
| Dec. 31, 2023 € million | Dec. 31, 2022 € million | |
|---|---|---|
| Trust assets | 3,239 | 3,579 |
| of which: trust loans | 2,949 | 3,355 |
| Trust liabilities | 3,239 | 3,579 |
| of which: trust loans | 2,949 | 3,355 |
42. Defined benefit obligations
Funding status of defined benefit obligations
| Provisions | Other liabilities | |||
|---|---|---|---|---|
| Dec. 31, 2023 € million | Dec. 31, 2022 € million | Dec. 31, 2023 € million | Dec. 31, 2022 € million | |
| Present value of defined benefit obligations funded by plan assets | 3,155 | 2,963 | 1,517 | 1,439 |
| Present value of defined benefit obligations not funded by plan assets | 5,474 | 4,888 | 56 | 58 |
| Present value of defined benefit obligations | 8,629 | 7,851 | 1,573 | 1,497 |
| less fair value of plan assets | –2,832 | –2,722 | –1,715 | –1,653 |
| Asset ceiling | 123 | 126 | 267 | 275 |
| Defined benefit obligations (net) | 5,920 | 5,256 | 125 | 119 |
| Recognized surplus | 18 | 19 | – | – |
| Provisions for defined benefit plans | 5,939 | 5,276 | 125 | 119 |
Defined benefit obligations (net)
Provisions
| € million | Present value of defined benefit obligations | Fair value of plan assets | Asset ceiling | Defined benefit obligations (net) |
|---|---|---|---|---|
| Balance as at Jan. 1, 2022 | 10,519 | –3,358 | 54 | 7,215 |
| Current service cost | 135 | – | – | 135 |
| Interest income/expense | 110 | –37 | – | 73 |
| Return on plan assets (excluding interest income) | – | 696 | – | 696 |
| Actuarial gains (-)/losses (+) | –2,579 | – | – | –2,579 |
| Changes in the effect from the asset ceiling | – | – | 72 | 72 |
| Past service cost | 3 | – | – | 3 |
| Contributions to plan assets | 8 | –112 | – | –104 |
| Pension benefits paid including plan settlements | –405 | 97 | – | –308 |
| Other changes | 60 | –8 | – | 52 |
| Balance as at Dec. 31, 2022 | 7,851 | –2,722 | 126 | 5,256 |
| Current service cost | 83 | – | – | 83 |
| Interest income/expense | 287 | –99 | 5 | 193 |
| Return on plan assets (excluding interest income) | – | –73 | – | –73 |
| Actuarial gains (-)/losses (+) | 802 | – | – | 802 |
| Changes in the effect from the asset ceiling | – | – | –8 | –8 |
| Contributions to plan assets | 6 | –38 | – | –32 |
| Pension benefits paid including plan settlements | –407 | 102 | – | –305 |
| Other changes | 7 | –5 | – | 2 |
| Balance as at Dec. 31, 2023 | 8,629 | –2,832 | 123 | 5,920 |
Other liabilities
| € million | Present value of defined benefit obligations | Fair value of plan assets | Asset ceiling | Defined benefit obligations (net) |
|---|---|---|---|---|
| Balance as at Jan, 1, 2022 | 2,091 | –2,006 | 118 | 203 |
| Current service cost | 44 | – | – | 44 |
| Interest income/expense | 23 | –22 | 1 | 2 |
| Return on plan assets (excluding interest income) | – | 352 | – | 352 |
| Actuarial gains (-)/losses (+) | –596 | – | – | –596 |
| Changes in the effect from the asset ceiling | – | – | 156 | 156 |
| Contributions to plan assets | 1 | –34 | – | –33 |
| Pension benefits paid including plan settlements | –66 | 57 | – | –9 |
| Balance as at Dec. 31, 2022 | 1,497 | –1,653 | 275 | 119 |
| Current service cost | 25 | – | – | 25 |
| Interest income/expense | 54 | –61 | 11 | 4 |
| Return on plan assets (excluding interest income) | – | –24 | – | –24 |
| Actuarial gains (-)/losses (+) | 64 | – | – | 64 |
| Changes in the effect from the asset ceiling | – | – | –19 | –19 |
| Contributions to plan assets | – | –36 | – | –36 |
| Pension benefits paid including plan settlements | –68 | 59 | – | –9 |
| Balance as at Dec. 31, 2023 | 1,573 | –1,715 | 267 | 125 |
Actuarial assumptions used for defined benefit obligations
| Provisions | Other liabilities | |||
|---|---|---|---|---|
| Dec. 31, 2023 (percent) | Dec. 31, 2022 (percent) | Dec. 31, 2023 (percent) | Dec. 31, 2022 (percent) | |
| Weighted discount rate | 3.20 | 3.70 | 3.20 | 3.70 |
| Weighted salary increase | 2.23 | 2.24 | 2.50 | 2.50 |
| Weighted pension increase | 2.20 | 2.21 | 2.30 | 2.30 |
43. Asset management by the Union Investment Group
| Dec. 31, 2023 € million | Dec. 31, 2022 € million | |
|---|---|---|
| Fund assets | 417,221 | 376,835 |
| Other types of asset management | 53,888 | 51,683 |
| Unit-linked asset management | 7,500 | 6,080 |
| Institutional asset management | 7,196 | 6,090 |
| Advisory and outsourcing | 39,192 | 39,513 |
| Accounts managed by third parties | –15,957 | –15,403 |
| Total | 455,152 | 413,115 |
As at the balance sheet date, the Union Investment Group (through Union Asset Management Holding AG) had total assets under management of €455,152 million (December 31, 2022: €413,115 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 German Investment Funds Association (BVI), Frankfurt/Main.
44. Leases
Finance leases with the Cooperative Financial Network as lessor
| Dec. 31, 2023 € million | Dec. 31, 2022 € million | |
|---|---|---|
| Gross investment | 494 | 595 |
| Up to 1 year | 170 | 225 |
| More than 1 year and up to 2 years | 117 | 149 |
| More than 2 years and up to 3 years | 89 | 93 |
| More than 3 years and up to 4 years | 58 | 65 |
| More than 4 years and up to 5 years | 32 | 32 |
| More than 5 years | 28 | 31 |
| less unearned finance income | –32 | –29 |
| Net investment | 463 | 565 |
| less present value of unguaranteed residual values | –13 | –17 |
| Present value of minimum lease payment receivables | 449 | 548 |
The VR Smart Finanz sub-group is also active as finance lessor in the Cooperative Financial Network. The entities of the VR Smart Finanz sub-group enter into leases for motor vehicles, machinery used in production, and photovoltaics, among others. Apart from office equipment, leases also refer to software.
45. 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, 2022 | 6,750,416 | 297,449 | 499,096 | 15,570 | 7,249,512 | 313,019 |
| Additions in 2023 as a result of | ||||||
| New contracts (redeemed contracts)1 | 449,610 | 30,879 | – | – | 449,610 | 30,879 |
| Transfers | 15,035 | 617 | 1,280 | 97 | 16,315 | 715 |
| Allocation waivers and cancellations | 5,139 | 228 | – | – | 5,139 | 228 |
| Splitting | 113,209 | – | 263 | – | 113,472 | – |
| Allocations and acceptance of allocations | – | – | 544,654 | 18,224 | 544,654 | 18,224 |
| Other | 92,980 | 4,161 | 48 | 4 | 93,028 | 4,165 |
| Total | 675,973 | 35,886 | 546,245 | 18,325 | 1,222,218 | 54,211 |
| Disposals in 2023 as a result of | ||||||
| Allocations and acceptance of allocations | –544,654 | –18,224 | – | – | –544,654 | –18,224 |
| Reductions | – | –1,062 | – | – | – | –1,062 |
| Termination | –263,157 | –8,194 | –393,891 | –11,127 | –657,048 | –19,322 |
| Transfers | –15,035 | –617 | –1,280 | –97 | –16,315 | –715 |
| Pooling1 | –75,667 | – | –1 | – | –75,668 | – |
| Expiration | – | – | –71,357 | –1,943 | –71,357 | –1,943 |
| Allocation waivers and cancellations | – | – | –5,139 | –228 | –5,139 | –228 |
| Other | –92,980 | –4,161 | –48 | –4 | –93,028 | –4,165 |
| Total | –991,493 | –32,259 | –471,716 | –13,400 | –1,463,209 | –45,659 |
| Net addition/disposal | –315,520 | 3,627 | 74,529 | 4,926 | –240,991 | 8,552 |
| Balance as at Dec. 31, 2023 | 6,434,896 | 301,076 | 573,625 | 20,496 | 7,008,521 | 321,572 |
1 Including increases
Volume of unredeemed contracts
| Home savings sum € million | Number of contracts | Home savings sum |
|---|---|---|
| Contracts signed prior to Jan. 1, 2023 | 51,120 | 4,771 |
| Contracts signed in 2023 | 173,715 | 13,387 |
46. Changes in the allocation assets of Bausparkasse Schwäbisch Hall
| 2023 € million | |
|---|---|
| Additions | |
| Amounts carried forward from 2022 (surplus) | |
| Amounts not yet disbursed | 63,360 |
| Additions in 2023 | |
| Savings deposits (including credited residential construction bonuses) | 9,818 |
| Repayable amounts (including credited residential construction bonuses)1 | 1,285 |
| Interest on home savings deposits | 772 |
| Total | 75,234 |
| Withdrawals | |
| Withdrawals in 2023 | |
| Amounts allocated (if disbursed) | |
| Home savings deposits | 10,991 |
| Home savings loans | 3,224 |
| Repayment of deposits on non-allocated home savings contracts | 1,724 |
| Surplus of additions | |
| (Amounts not yet disbursed) at the end of 20232 | 59,295 |
| Total | 75,2345 |
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: €122 million
b) undisbursed home savings loans from funds allocated: €2,836 million
47. Cover statement for the mortgages and local authority loans extended by the mortgage banks
| Mortgage Pfandbriefe | Public-sector Pfandbriefe | |||
|---|---|---|---|---|
| Dec. 31, 2023 € million | Dec. 31, 2022 € million | Dec. 31, 2023 € million | Dec. 31, 2022 € million | |
| Ordinary cover | 90,050 | 84,293 | 13,178 | 13,930 |
| Loans and advances to banks | 43 | 32 | 315 | 202 |
| of which: Mortgage loans | 43 | 32 | – | – |
| of which: Local authority loans | – | – | 315 | 202 |
| Loans and advances to customers | 89,860 | 84,114 | 11,680 | 12,333 |
| of which: Mortgage loans | 89,860 | 84,114 | 23 | 27 |
| of which: Local authority loans | – | – | 11,657 | 12,306 |
| Investments consisting of bonds and other fixed-income securities | – | – | 1,183 | 1,395 |
| Property, plant and equipment | 147 | 147 | – | – |
| Extended cover | 3,076 | 2,271 | – | 50 |
| Loans and advances to banks | 135 | 225 | – | – |
| Investments consisting of bonds and other fixed-income securities | 2,941 | 2,046 | – | 50 |
| Total cover | 93,126 | 86,564 | 13,178 | 13,980 |
| Pfandbriefe requiring cover | –77,757 | –72,579 | –10,700 | –10,920 |
| Nominal excess cover | 15,369 | 13,985 | 2,478 | 3,060 |
| Present value of excess cover | 17,417 | 16,286 | 2,499 | 2,895 |
| Risk-related present value of excess cover | 15,809 | 14,512 | 2,199 | 2,458 |
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, 2023 € million | Dec. 31, 2022 € million | |
|---|---|---|
| Mortgage Pfandbriefe | 77,757 | 72,579 |
| ≤ 6 months | 4,118 | 3,474 |
| > 6 months and ≤ 12 months | 3,237 | 2,474 |
| > 12 months and ≤ 18 months | 3,554 | 2,813 |
| > 18 months and ≤ 2 years | 4,143 | 2,456 |
| > 2 years and ≤ 3 years | 8,074 | 5,326 |
| > 3 years and ≤ 4 years | 8,785 | 6,777 |
| > 4 years and ≤ 5 years | 7,679 | 8,009 |
| > 5 years and ≤ 10 years | 22,278 | 24,043 |
| > 10 years | 15,889 | 17,207 |
| Public-sector Pfandbriefe | 10,700 | 10,920 |
| ≤ 6 Monate | 590 | 515 |
| > 6 months and ≤ 12 months | 444 | 383 |
| > 12 months and ≤ 18 months | 795 | 588 |
| > 18 months and ≤ 2 years | 496 | 345 |
| > 2 years and ≤ 3 years | 872 | 1,323 |
| > 3 years and ≤ 4 years | 1,073 | 874 |
| > 4 years and ≤ 5 years | 771 | 574 |
| > 5 years and ≤ 10 years | 2,130 | 2,309 |
| > 10 years | 3,529 | 4,009 |
Fixed-interest periods of cover assets
| Dec. 31, 2023 € million | Dec. 31, 2022 € million | |
|---|---|---|
| Mortgage Pfandbriefe | 93,126 | 86,564 |
| ≤ 6 months | 4,560 | 3,835 |
| > 6 months and ≤ 12 months | 4,084 | 4,135 |
| > 12 months and ≤ 18 months | 3,995 | 3,915 |
| > 18 months and ≤ 2 years | 5,371 | 3,570 |
| > 2 years and ≤ 3 years | 8,858 | 8,516 |
| > 3 years and ≤ 4 years | 8,974 | 7,554 |
| > 4 years and ≤ 5 years | 7,196 | 7,941 |
| > 5 years and ≤ 10 years | 27,877 | 26,963 |
| > 10 years | 22,211 | 20,135 |
| Public-sector Pfandbriefe | 13,178 | 13,980 |
| ≤ 6 Monate | 588 | 628 |
| > 6 months and ≤ 12 months | 718 | 677 |
| > 12 months and ≤ 18 months | 489 | 572 |
| > 18 months and ≤ 2 years | 612 | 702 |
| > 2 years and ≤ 3 years | 1,325 | 1,169 |
| > 3 years and ≤ 4 years | 921 | 1,161 |
| > 4 years and ≤ 5 years | 894 | 879 |
| > 5 years and ≤ 10 years | 2,889 | 3,193 |
| > 10 years | 4,742 | 4,999 |
4 properties were in forced administration as at the reporting date (December 31, 2022: 11).
48. Board of Managing Directors of the BVR
Marija Kolak (President)
Dr. Andreas Martin (until June 30, 2023)
Tanja Müller-Ziegler (since April 1, 2023)
Daniel Quinten
Berlin, June 24, 2024
National Association of German Cooperative Banks
BVR
Board of Managing Directors
Marija Kolak Tanja Müller-Ziegler Daniel Quinten