Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (August 2014)
20 slides from Nordea Bank Abp's debt investor presentation, Aug 12, 2014
Slide 1: Nordea Kredit Investor Presentation 2014 Q2
Nordea Kredit Investor Presentation 2014 Q2 Published 12 August, 2014 Nordea Kredit
Slide 2: Purpose of presentation, contacts and contents
This 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 covered mortgage bonds and mortgage bonds. If you have any questions, please feel free to contact: Finn Nicolai
Slide 3: Nordea Kredit – in brief I
Nordea Kredit – in brief I • Founded in 1993, number of employees (in FTEs) 127 (as per 2014 Q2) • New issues are covered mortgage bonds (SDROs), exclusively • All bonds issued by Nordea Kredit are rated AAA (by S&P) and Aaa (by Moody’s) • Profit before tax 2014, 1H DKK 895m and Cost/Income ratio 8.
Slide 4: Nordea Kredit – in brief II
Nordea Kredit – in brief II • Average LTV 2014 Q2: 70% (2014 Q1: 70%) • Total capital ratio at end of 2014 Q2: 24.9% and Tier 1 capital ratio 24.9% (excl. transitional rules) • Completely match funded “Pass Through” setup complying with the Danish specific balance principle • Late payments by borrow
Slide 5: Nordea Kredit – ratings and over-collateralisation
Nordea Kredit – ratings and over-collateralisation Moody´s S&P CC 1 CC2 CC1 CC 2 Ratings of issued bonds Aaa Aaa AAA AAA Required OC / CE for 3.0 10.5 5.50 7.98 Aaa and AAA rating, % TPI leeway/Unused uplift 5 4 4 4 OC per Q2 2014, % CC1: 9.5 OC and CE requirements as set by Moody´s and S&P, respect
Slide 6: Nordea Kredit – market shares in per cent of total market
Nordea Kredit – market shares in per cent of total market 18 16 14 12 10 per cent 8 6 - 4 2 0 2011 Q22011 Q32011 Q42012 Q12012 Q22012 Q32012 Q42013 Q12013 Q22013 Q32013 Q42014 Q12014 Q2 Other properties Private rental housing Commercial Agriculture Owner occupied dwellings and holiday homes All segm
Slide 7: Profit and increase in net lending
Nordea Kredit – profit and increase in net lending 1600 30 Profit before tax << Increase in net lending DKK bn for 2014 1H was 1400 Profit before tax DKK m (rhs) >> DKK 895m 25 Increase in net lending DKK bn 1200 Profit before tax DKK m 20 1000 800 15 600 10 400 5 200 0 0 1995 1996 1997 1998 1999 20
Slide 8: Nordea Kredit capital centres
Nordea Kredit capital centers CCs I&II, 2014 Q2: DKK 376.9bn Nordea Kredit has two capital centres: (mortgage loans at fair value) • CC I: Mortgage Bonds (Realkreditobligationer, “RO”) No open CC I, RO: series. 90% of the bonds in CC I DKK 35.1bn, are grandfathered covered bonds 9.3 % according to U
Slide 9: Match funded setup due to the specific Balance Principle
Match funded setup due to the specific Balance Principle Interest Interest payment payment Borrower Investor Principal Principal payment payment Contribu- tion fee Nordea Kredit complies with the specific Balance Principle and has a completely match funded “Pass Through” setup. Nordea Kredit has no
Slide 10: Loan portfolio by property category
Nordea Kredit – loan portfolio by property category Capital centres I & II, 2014, Q2 at fair value: DKK 376.9bn Distribution of all loans by property category DKK 46.7bn, 12.4% DKK 10.1bn, 2.7% DKK 41.1bn, 10.9% DKK 254.8bn, 67.6% Owner occ. dwellings & holiday homes DKK 24.3bn, 6.4% Private rental
Slide 11: Loan portfolio - loan type split
Nordea Kredit – loan portfolio - loan type split Capital centres I & II, 2014, Q2 at fair value: DKK 376.9bn Distribution of all loans by loan type DKK 20.6bn, 5.5% DKK 33.4bn, 8.9% DKK 86.6bn, 23.0% DKK 3.9bn, 1.0% DKK 2.7bn, 0.7% DKK 60.4 bn 17.6% DKK 57.2bn, 15.2% Fixed Fixed IO ARM ARM IO FRN ca
Slide 12: Loan portfolio - loan type split developments
Nordea Kredit – loan portfolio - loan type split (Developments from 2013, Q2 - 2014, Q2 – nominal value) 12
Slide 13: Loan type split of owner occupied dwellings
Nordea Kredit – loan type split of owner occupied dwellings Owner occupied dwellings and holiday homes, capital centres I & II, 2014, Q2 at fair value: DKK 254.8bn Distribution of loans by loan type DKK 1.5bn, 0.6% DKK 3.7bn, 1.4% DKK 3.0bn, 1.2% DKK 2.4bn, 1.0% DKK 71.0bn, 27.9% DKK 84.4bn, 33.1% D
Slide 14: Loans by Danish regions and property categories
Nordea Kredit - loans by Danish regions and property categories Capital centres I & II, 2014, Q2 at fair value: All property categories: DKK 376.9bn Owner occupied dwellings & holiday homes: DKK 254.8bn Geographical distribution by Danish regions DKK 17.4bn, 4.6%* DKK 11.0bn, 4.3%** North (0.58m cit
Slide 15: Asset quality - late payments by borrowers
Asset quality - late payments by borrowers, 2014 Q1 0.70 Owner occupied dwellings and holiday homes, arrears as a percentage of the Q1, 2014 scheduled payments - 3½ month after due date 0.60 All mortgage banks* Nordea Kredit All mortgage 0.50 banks 0.26% (last 0.25%) per cent 0.40 0.30 0.20 Nordea K
Slide 16: 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 dwellings Lifetime of loan 25 per cent Holiday homes Lifetime of loan 25 per cent Sub
Slide 17: Net losses in per cent of mortgage loans
Net losses in per cent of mortgage loans at nominal value 400,000 0.50% Mortgage loans nominal value, DKKm Losses % of mortgage loans, nominal value 350,000 Mortgage loans at nominal value 0.40% 300,000 Net loss for the year in per cent of mortgage loans at nominal value (rhs) 250,000 0.30% 200,000
Slide 18: LTV, loan-to-value 2014 Q2
Nordea Kredit – LTV, loan-to-value 2014 Q2 (2014 Q1) LTV CC I & II LTV CC I LTV CC II 2014Q2 2014Q1 2014Q2 2014Q1 2014Q2 2014Q1 Owner occupied 77 77 76 76 77 77 dwellings Private rental housing 64 64 75 74 63 63 Commercial 58 58 51 50 58 58 Agriculture 50 50 48 48 50 51 Other properties 36 34 40 40
Slide 19: Legislation
Legislation • Danish mortgage financing is regulated and supervised by the DFSA (Finanstilsynet): www.ftnet.dk • Some legislation can be found in English at the DFSA’s English website: http://www.finanstilsynet.dk/en/Regler-og-praksis/Translated-regulations.aspx • All relevant legislation can be fou
Slide 20: Disclaimer – Important Notice
DISCLAIMER – IMPORTANT NOTICE This presentation and any information contained in this presentation or supplied in connection therewith, whether in writing or not, are provided for information purposes only. Nordea Bank AB (publ) including its subsidiaries (“Nordea”) is not acting as your financial a
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