Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (April 2009)
17 slides from Nordea Bank Abp's debt investor presentation, April 2009
Slide 1: Nordea Kredit Investor Presentation – 2008 Q4
Nordea Kredit Investor Presentation – 2008 Q4 Published April 2009
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 (Data as by the end of 2008 Q4) • Founded in 1993, number of employees 130 • All bonds issued by Nordea Kredit are rated AAA (S&P) and Aaa (Moody’s) • Profit before tax 2008: 1.2 bn DKK, RoE 9.3%, Cost/Income ratio 15.2% • Outstanding bond volume 274.5 bn DKK • Market shar
Slide 4: Nordea Kredit – in brief II
Nordea Kredit – in brief II (Data as by the end of 2008 Q4) • Late payments by borrowers 0.22% (3½ month after due date) • Losses and provisions: 0.007% of outstanding loans • Average LTV: 60% • Completely match funded “Pass Through” setup ‐ strict ALM (Asset Liability Management) • Danish MCI’s are
Slide 5: Nordea Kredit – in brief
Nordea Kredit – in brief 35 << Increase in net lending DKK bn 1400 Profit before tax DKK m (rhs) >> Number of employees (rhs) >> << Market share (per cent of total amount of bonds issued by Danish MCIs) 30 1200 25 1000 20 800 15 600 10 400 5 200 0 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Slide 6: Nordea Kredit – Capital Centre 1 and 2 (CC I and II)
Nordea Kredit – Capital Centre 1 and 2 (CC I and II) • Nordea Kredit has two capital centres: – Mortgage Bonds (Realkreditobligationer, “RO”) are issued out of CC I (1993 ‐ ), however only 1 ISIN is active. More than 97% of the bonds in CC I are covered bond grandfathered CC II, SDRO – Covered Mortg
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 Loans to all segments Loans to residential properties and CC I and II, end of year 2008: holiday homes 274.5 bn DKK CC I and II, end of year 2008: 199.6 bn DKK 1.9 bn DKK 2.9 bn DKK 1.7 bn DKK 2.7 bn DKK 0.7% 23.5 bn DKK 0.8% 52.4 bn DKK 1.0% 91.2 bn DKK
Slide 9: Nordea Kredit – geographical distribution of loans
Nordea Kredit – geographically distribution of loans CC I and CC II end of year 2008. All segments: 274.5 bn DKK. Residential properties, farmhouses, building plot and holiday homes: 212.9 bn DKK. 11.8 bn DKK 4.3%* 8.3 bn DKK 3.9%** North Denmark (0.58 m citizens – 10.5%) Region 99.2 bn DKK 36.1%* 8
Slide 10: 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 11: Asset quality - late payments by borrowers
Asset quality ‐ late payments by borrowers ‐ 3½ month after due date 0.60 Residential properties and holiday homes Arrears as a percentage of the total amount due 0.50 0.40 per cent 0.30 All Danish MCIs 0.27% Nordea Kredit 0.22% 0.20 0.10 0.00 2002 2003 2004 2005 2006 2007 2008 11
Slide 12: Losses in per cent of outstanding bonds
Losses in per cent of outstanding bonds 300.000 0,0100% 250.000 Outstanding bonds mDKK Losses % of outstanding bonds Loss for the year in per cent of 0,0075% Outstanding bonds ‐ mDKK 200.000 outstanding bonds (rhs) 150.000 0,0050% 100.000 0,0025% 50.000 0 0,0000% 1997 1998 1999 2000 2001 2002 2003 2
Slide 13: LTV, loan-to-value
Nordea Kredit – LTV, loan‐to‐value 13
Slide 14: LTV, loan-to-value
Nordea Kredit – LTV, loan‐to‐value For detailed information on LTV – please refer to LTV Report 2008 Q4 14
Slide 15: Legislation
Legislation • Danish mortgage financing is highly regulated and closely 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 w
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 21,000 ‐ but by mid 2006 prices peaked. DKK per sqm 19,000 17,000 Since January 1993 the number of foreclosures 15,000 has fallen from more than 1,400 to a low of only 13,000 11,000 Detached ho
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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