Sparebanken Ost · OSL:SPOG

Sparebanken Ost — Sparebanken Øst Boligkreditt AS — Debt Investor Presentation (June 2011)

15 slides from Sparebanken Ost's debt investor presentation, Jun 30, 2011

  1. Slide 1: Sparebanken Øst Boligkreditt AS Investor presentation

    Sparebanken Øst Boligkreditt AS Investor presentation 30.06.2011 Frode Lindbeck

  2. Slide 2: Sparebanken Øst Boligkreditt AS

    Sparebanken Øst Boligkreditt AS • Established 14. April 2009 • Fully owned subsidiary of Sparebanken Øst • Moody’s assigns Aaa rating to Sparebanken Øst Boligkreditt’s mortgage covered bonds March 1st 2011 – All figures in the following presentation are as at June 30th 2011 unless otherwise stated G

  3. Slide 3: Norwegian economy

    Norwegian economy • Mixed economy with heavy state Current account balance % GDP 2010 ownership in strategic areas 20 • One of the wealthiest countries in the 15 world, low impact from financial crisis 105 • Oil, fishery and technology export 0 Euro area (14… United Kingdom Portugal Norway Iceland G

  4. Slide 4: Residential property market

    Residential property market • Nearly 80% of households own their dwellings • Real house prices growth 131% 1985-09, but only 17% deflated by growth in disposable income • Strong tax incentive for housing investment: All interest paid on mortgages is tax deductible, real estate tax very low, tax free

  5. Slide 5: Sparebanken Øst group

    Sparebanken Øst group • Savings bank established 1843 • Head office in Drammen, 22 branches • Total assets 26.6 bn. NOK (≈€3,4 bn.) • Moody’s rating bank: A3/P-2 stable • Equity instrument «SPOG» Oslo Stock Exchange • Q2 2011 – After tax ROE 14.0% – CAR / Tier 1 15.7% / 13.9% 5 Frode Lindbeck

  6. Slide 6: Consolidated loan book

    Consolidated loan book Other real estate 1,2 % Real estate trading 2,6 % Abroad 0,1 % Financial services 1,6 % Property for hire 9,9 % Services 2,0 % Transport 0,5 % Trade 2,7 % Construction 3,0 % Industry 0,7 % Mortgages (bank) Agriculture, forestry, 46,4 % fishing 0,9 % AS Financiering (car loans)

  7. Slide 7: Summary Q2 2011 Sparebanken Øst Boligkreditt AS

    Summary Q2 2011 Sparebanken Øst Boligkreditt AS • Market value non-recourse sale of loans from bank to covered bond company • All loans in cover pool first priority Norwegian residential mortgages • Collateral property valued by independent specialist Eiendomsverdi AS (AVM) • FSA-appointed independe

  8. Slide 8: Short overview Norwegian CB Legislation

    Short overview Norwegian CB Legislation • Proportional preferential claim on cover pool by covered bonds holders and derivative counterparts • Individual assessment of prudent value of Cover Pool properties by competent and independent third party • Residential property <75% LTV upon inclusion in co

  9. Slide 9: Property type

    Property type Private ownership 87,2 % Share in housing association 12,8 % 0% 20 % 40 % 60 % 80 % 100 % 0% 20 % 40 % 60 % 80 % 100 % Detached House 79,9 % Detached House 3,6 % Condominium 15,2 % Condominium 83,4 % Semi Detached 4,7 % Semi Detached 13,0 % Other 0,2 % Other 0,0 % • Total cover pool si

  10. Slide 10: Regional distribution of Cover Pool

    Regional distribution of Cover Pool SHARE OF LOAN BALANCE 0,0 % 10,0 % 20,0 % 30,0 % 40,0 % Buskerud 37,7 % Akershus 22,1 % Oslo 19,5 % Vestfold 6,8 % Rogaland/Hordaland 5,2 % Østfold 3,1 % Northwest/Trøndelag 2,4 % Telemark/Agder 1,4 % Nordland\Troms\Finnmark 0,9 % Hedmark\Oppland 0,9 % • Distribut

  11. Slide 11: Seasoning

    Seasoning 2.000 MNOK 1.500 1.000 500 1.696 1.839 1.056 287 16 0 0-1 1-3 3-5 5-10 10+ Years • Weighted average seasoning: 2.17 years • Approx. 28% of the cover pool is >3 years seasoned Frode Lindbeck

  12. Slide 12: Loan to Value

    Loan to Value MNOK 1.200 1.000 800 600 400 200 84 305 593 889 1.070 1.136 795 23 0 0-10% 10- 20- 30- 40- 50- 60- 70- 20% 30% 40% 50% 60% 70% 80% • Weighted average LTV = 43.8% • Approx. 83% of the cover pool has an LTV < 60% • There are none non-performing or impaired loans in the mortgage portfolio

  13. Slide 13: Issued Covered Bonds

    Issued Covered Bonds ISIN TICKER INT. ISSUED MATURITY CURR. AMOUNT COUPON Mill. NOK NO0010520372 - FRN 15.06.09 15.09.14* NOK 1 250 NIB3+45 NO0010572464 SPOBK01PRO FRN 21.05.10 21.05.15* NOK 1 000 NIB3+65 NO0010589955 SPOBK02PRO FRN 18.10.10 18.10.16* NOK 1 000 NIB3+57 NO0010604879 SPOBK03PRO FRN 16

  14. Slide 14: Overcollateralization

    Overcollateralization RESIDENTIAL OVER- MORTGAGES COVERED BONDS COLLATERALIZATION 4Q09 1.844.068 1.250.000 48 % 1Q10 2.270.788 1.250.000 82 % 2Q10 2.316.204 1.750.000 32 % 3Q10 2.510.242 1.950.000 29 % 4Q10 2.830.329 2.450.000 16 % 1Q11 4.015.341 3.450.000 16 % 2Q11 4.893.175 4.250.000 15 % Frode Li

  15. Slide 15: Sparebanken Øst Boligkreditt AS contact details

    Sparebanken Øst Boligkreditt AS Phone:+47 915 03220 P.O.Box 54 Fax: +47 3288 3712 3001 Drammen www.oest.no Norway firmapost@oest.no CEO Lars-Runar Groven +47 9020 0224 larsrunar.groven@oest.no Investor / Funding Contact Frode Lindbeck / Vegard Kvamme +47 9172 4891 / +47 9770 0370 vegard.kvamme@oest.

Sparebanken Øst Boligkreditt AS — Debt Investor Presentation (June 2011) on 6ix