NORD/LB Group Presentation August 2018 1 Agenda. NORD/LB at a - PowerPoint PPT Presentation

NORD/LB Group Presentation August 2018 1

Agenda. NORD/LB at a glance 3 Financials 10 Segments 18 Outlook 29 Appendix 34 2

NORD/LB at a glance Established commercial bank in northern Germany. Successful universal bank for over 250 years in the market Among the top seven German banks Market leader in Northern Germany in its business units private, commercial and corporate customers Excellent knowledge in renewable energy and infrastructure projects Over 30 years of experience in ship and aircraft finance Represented in important financial centres worldwide Member of the extended Guarantee Funds of landesbanks and savings banks 3

NORD/LB at a glance Ownership structure and regional network. Strong support from our owners¹ Headquarters and ownership region Special Purpose Holding Association of the Mecklenburg-Western Pomerania Saxony-Anhalt Savings Savings Banks Banks Holding Association 3.7% 5.3% Hanover Brunswick Magdeburg Lower Saxony Savings Banks and Giro 26.4% Association 59.1% 5.6% State of Saxony-Anhalt State of Lower Saxony ¹ Total differences are rounding differences 4

NORD/LB at a glance Represented in important financial and trade centres worldwide.  Head offices Hanover, Brunswick, Magdeburg  Branches worldwide London, New York, Singapore, New York Shanghai  German branches Bremen, Duesseldorf, Hamburg, Munich, Oldenburg Schwerin, Stuttgart and approx. 100 branches of Braunschweigische Landessparkasse  Subsidiaries and bank holdings Deutsche Hypothekenbank, Hamburg London NORD/LB Luxembourg Covered Bond Oldenburg Schwerin Amsterdam Bremen Bank Brunswick Hanover Magdeburg Warsaw Duesseldorf Luxembourg Paris Frankfurt Nuremberg Shanghai Stuttgart Munich Singapore Addresses and more details: www.nordlb.com/nordlb/about-us/locations-worldwide 5

NORD/LB at a glance Our business segments. Private and Corporate Savings Bank Markets Commercial Customers Network Customers Customers   Private customer business Corporate customer business  Business with Savings Bank Network/   Private Banking  Agricultural Banking extended network Institutional customers    Commercial customer business  Finance with public and Corporate customers/ Savings banks/ financial cooperative housing syndication loans  institutions Insurance services for private associations  customers in cooperation with Municipal customers  Public-sector customers  public insurances in Lower Corporate Finance Saxony  Leasing Energy and Real Estate Banking Ship Customers Aircraft Customers Infrastructure Customers Customers Ship finance Aircraft finance  Commercial real estate  Renewable energy finance  Container vessels  Narrow-/Widebodies finance  Infrastructure finance  Bulker  Freighters  International social care  Tanker  property finance Regional Jets  Multi purpose vessels  Turboprops   Offshore Oil & Gas Helicopter   Cruises / Ferries Spare Engines  Finance and Operating Lease 6

NORD/LB at a glance Holding structure and brands. 1  Private and Commercial Customers  Corporate Customers  Markets  Ship, Aircraft, Energy/Infrastructure, Real Estate Banking  Leasing  Savings Bank Network 100% 2 3 100% 2 Commercial real estate  Loans Private and commercial  Financial Markets & Sales finance customers  Client services & B2B ¹ For additional information about subsidiaries and affiliated companies please consult https://www.nordlb.com/nordlb/about-us/investments/ or our Group Annual Reports 2017, note (84) ² NORD/LB ensures that the companies mentioned in the Annual Report 2017, Note (75) are able to meet their obligations ³ Incorporated under public law with partial legal capacity 7

NORD/LB at a glance Our ratings. NORD/LB credit ratings A-, negative Senior unsecured preferred debt with outlook Baa2, negative A, positive Deposits with outlook (long-term/short-term) Baa2/P-2, negative A-/F1 A/R-1 (low) Counterparty Risk Rating/Derivate Baa2(cr)/P-2(cr) A-(dcr)/- - counterparty rating (long-term/short-term) Senior unsecured non-preferred debt with Ba1, negative A-, negative A (low), positive outlook Subordinate/Tier 2 B1 BB- BBB (high) Intrinsic financial strength 1 ba3 bb BBB (low) Tier 1 Caa1 (hyb) - - Public-Sector / Mortgage / Aircraft Pfandbriefe Aa1 / Aa1 / A3 - - NORD/LB sustainability ratings Corporate Rating C+ Prime A 64 of 100 points Sustainability Rating Neutral CCC Public-Sector Pfandbriefe Positive BBB Mortgage Pfandbriefe Positive BB Shipping Pfandbriefe Positive B 1 Adjusted Baseline Credit Assessment / Viability Rating / Intrinsic Assessment 8

Agenda. NORD/LB at a glance 3 Financials 10 Segments 18 Outlook 29 Appendix 34 9

Financials Implementation of the transformation programme shows positive impact in the reduction of risk positions and administrative expenses.  Administrative expenses reduced by 10 %; Reduction of shipping portfolio on track; Balance Transformation sheet further decreased to € 158.7bn ( € 163.8bn as at 31 Dec 2017); Stable capital ratios NORD/LB Group’s non -performing loans (NPL) ratio decreased from 4.7 % (as at 31 Dec 2017) to  4.0 % (as at 30 June 2018). De-risking of The reduction of shipping NPLs from € 7.7bn (as at 30 June 2018) to € 5bn by the end of 2019 is on loan portfolio track  Consolidated profit before taxes with € 52m as at 30 June 2018. The previous year was impacted Consolidated profit by profits from sale of promissory notes and amounted to € 451m before taxes  Common Equity Capital ratio strengthened through disciplined RWA- and balance sheet management. Common Tier I ratio Equity Tier 1 ratio at 12.4 per cent as at 30 June 2018, significantly above regulatory > 11,0 % requirements (9.54 per cent) 10

Financials Income statement: positive consolidated profit. 1 Jan - 1 Jan - Change Income statement (in € m) 30 Jun 2018 30 Jun 2017 1 in %  Decline in net interest income due to decreasing average asset Net interest income 618 731 -15 levels and persistently low interest-rates  Net commission income: Increased payments for guarantee Net commission income 28 68 -59 premiums Profit/loss from financial assets -36 193 >100 at fair value  Profit/loss from financial assets at fair value: High positive Risk provisioning -31 -437 -93 interest-rate effects in 2017 Disposal profit/loss from  Risk provisioning: Less allocations necessary due to better market financial assets not measured 30 451 -93 conditions in merchant shipping and more reversals due to higher at fair value market values Profit/loss from hedge -12 13 >100 accounting  Disposal profit/loss from financial assets that are not measured Profit/loss from shares in 11 2 >100 at fair value through profit or loss: Significantly lower profits from companies the sale of promissory notes compared to previous year’s period Profit/loss from investments accounted for using the equity 11 27 -59  Administrative expenses: Expenses for experts and consultants method decline, as well as expenses for IT and communication services Administrative expenses (-) 531 588 -10 and staff Other operating profit/loss -20 8 >100  Other operating profit/loss is influenced in particular by the Earnings before reorganisation annual contribution of the bank levy ( € 56m) in 2018 68 468 -85 and taxes  Restructuring result: Primarily contain gains from the reversal of Restructuring result 14 -4 >100 restructuring provisions related to the transformation programme Reorganisation expenses (-) 30 13 >100  Reorganisation expenses: Especially characterized by measures to Earnings before taxes 52 451 -88 secure the bank’s future and competitiveness. These expenses have to be separately accounted for and are extraordinary one-off Income taxes (-) -2 149 >100 effects Consolidated profit 54 302 -82 1 Some previous year figures were adjusted, see Interim Report as at 30 June 2018, Note (2) 11