Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (February 2010)
17 slides from Nordea Bank Abp's debt investor presentation, Feb 11, 2010
Slide 1: Nordea Kredit Investor Presentation – 2009 Q4
Nordea Kredit Investor Presentation – 2009 Q4 Published 11 February 2010
Slide 2: Contents
The Investor Presentation has been compiled by Nordea Kredit for information purposes only, and offers facts and figures on Nordea Kredit, and the mortgage collateral supporting outstanding mortgage bonds and covered mortgage bonds. If you have any questions, feel free to contact us: Finn Nicolaisen
Slide 3: Nordea Kredit – in brief I
Nordea Kredit – in brief I • Founded in 1993, number of employees 138 • Nordea Kredit issues mortgage bonds and covered mortgage bonds • All bonds issued by Nordea Kredit are rated AAA (S&P) and Aaa (Moody’s) • Profit before tax 2009: 908 m DKK, RoE 6,5%, Cost/Income ratio 16.9% • Mortgage loans at
Slide 4: Nordea Kredit – in brief II
Nordea Kredit – in brief II • Late payments by borrowers 0.47% (Residential properties and holiday homes) 3½ month after due date • Average LTV 2009 Q4: 66% (2009 Q3: 67%) • Total capital ratio 9.9% and Tier 1 capital ratio 10.3% • Completely match funded “Pass Through” setup ‐ strict ALM (Asset Lia
Slide 5: Nordea Kredit – in brief III
Nordea Kredit – in brief III 35 1400 << Increase in net lending DKK bn Profit before tax DKK m (rhs) >> 30 Number of employees (rhs) >> 1200 << Market share (per cent of total amount of bonds issued by Danish MCIs) 25 1000 20 800 15 600 10 400 5 200 0 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2
Slide 6: Nordea Kredit – Capital Centres 1 & 2 (CC I & II)
Nordea Kredit – Capital Centres 1 & 2 (CC I & II) Mortgage loans at fair value 2009 Q4: • Nordea Kredit has two capital centres: – CC I: Mortgage Bonds (Realkreditobligationer, “RO”) are issued out of CC I (1993 ‐ ), however only 1 ISIN is presently open for issuance. More than 97% of the bonds in C
Slide 7: Match funded setup due to the strict Balance Principle
Match funded setup due to the strict Balance Principle Interest Interest payment payment Borrower Investor Principal Principal payment payment Contribu‐ tion fees Nordea Kredit complies with the strict Balance Principle, and has a completely match funded “Pass Through” setup. Nordea Kredit has no pr
Slide 8: Nordea Kredit – distribution of loans by type
Nordea Kredit – distribution of loans by type All segments ‐ CC I & II, 2009 Q4 at fair value: 294.6 bn DKK DKK 43.8 bn 14.9% DKK 74.5 bn 25.3% DKK 69.4 bn DKK 1.7 bn 23.5% 0.6% DKK 24.8 bn Fixed 8.4% Fixed IO ARM ARM IO DKK 78.0 bn FRN capped 26.5% DKK 2.4 bn FRN capped IO 0.8% FRN capped 8
Slide 9: Nordea Kredit – distribution of loans by type
Nordea Kredit – distribution of loans by type Residential properties and holiday homes ‐ CC I & II, 2009 Q4 at fair value: 207.3 bn DKK Fixed DKK 23.1 bn Fixed IO 11.1% ARM DKK 63.2 bn ARM IO 30.5% FRN capped FRN capped IO DKK 52.1 bn FRN capped 25.2% DKK 1.5 bn 0.7% DKK 65.1 bn 31.4% DKK 2.2 bn DKK
Slide 10: Nordea Kredit – geographical distribution of loans
Nordea Kredit – geographical distribution of loans CC I & CC II 2009 Q4, all segments: mortgage loans at fair value 294.6 bn DKK Residential properties and holiday homes: mortgage loans at fair value 207.3 bn DKK 13.1 bn DKK 4.6%* 8.5 bn DKK 4.1%** North Denmark (0.58 m citizens – 10.5%) Region 105.
Slide 11: Asset quality - loss guarantee by Nordea Bank Danmark
Asset quality ‐ loss guarantee by Nordea Bank Danmark Nordea Bank Danmark takes “first losses” on Nordea Kredit loans according to the table below: Property type Guarantee period * Guarantee level ** Owner occupied housing 5 years 25 per cent Holiday homes 5 years 25 per cent Subsidized property 10
Slide 12: Asset quality - late payments by borrowers
Asset quality ‐ late payments by borrowers ‐ 3½ month after due date 0,60 Residential properties and holiday homes 0.57% Arrears as a percentage of the total amount due (last 0.53%) 0,50 0.47% 0,40 (last 0.41%) per cent 0,30 All Danish MCIs * Nordea Kredit 0,20 0,10 0,00 2001Q1 2001Q2 2001Q3 2001Q4
Slide 13: Losses in per cent of mortgage loans at nominal value
Losses in per cent of mortgage loans at nominal value 300.000 0,0100% Mortgage loans at nominal value Mortgage loans nominal value, Losses % of mortgage loans, 250.000 Loss for the year in per cent of mortgage 0,0075% loans at nominal value (rhs) nominal value 200.000 mDKK 150.000 0,0050% 100.000 0,
Slide 14: Nordea Kredit – LTV, loan-to-value 2009 Q4 (2009 Q3)
Nordea Kredit – LTV, loan‐to‐value 2009 Q4 (2009 Q3) LTV CC I & II LTV CC I LTV CC II 2009Q4 2009Q3 2009Q4 2009Q3 2009Q4 2009Q3 Owner occupied dwellings 73 73 69 70 77 77 Rental 63 62 61 61 66 64 Industry and Trade 51 53 44 47 66 65 Office and Retail 56 57 49 49 60 61 Agriculture 45 45 42 42 47 46 O
Slide 15: Legislation
Legislation • Danish mortgage financing is closely regulated and supervised by the Danish FSA (Finanstilsynet, DFSA) • Some legislation can be found in English at the DFSA’s English website: http://www.dfsa.dk/sw7804.asp • All relevant legislation can be found in Danish at the DFSA’s Danish website:
Slide 16: Macro economics - house prices and foreclosures
Macro economics ‐ house prices and foreclosures 25.000 23.000 For a number of years house prices increased but 21.000 by mid‐2006 house prices peaked and DKK per sqm 19.000 subsequently declined. 17.000 15.000 Recently (2009 Q3 and Q4), however, minor 13.000 increases have been seen. 11.000 Detached
Slide 17: Disclaimer
Disclaimer: The information provided herein is intended for background information only and for the sole use of the intended recipient. The information provided herein is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation
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