Societe Generale S.a. Class A · EURONEXT:GLE
Societe Generale S.a. Class A — Société Générale SFH — Debt Investor Presentation (June 2014)
26 slides from Societe Generale S.a. Class A's debt investor presentation, June 2014
Slide 1: Société Générale Covered Bond Programs SG SFH Investor Presentation
SOCIETE GENERALE COVERED BOND PROGRAMS SG SFH INVESTOR PRESENTATION June 2014
Slide 2: Disclaimer
DISCLAIMER This document may contain a number of forecasts and comments relating to the targets and strategies of the Societe Generale Group. These forecasts are based on a series of assumptions, both general and specific, notably - unless specified otherwise - the application of accounting principl
Slide 3: Contents SG SFH
CONTENTS SG SFH CHAPTER 01_SG SFH COVERED BOND PROGRAMME CHAPTER 02_FRENCH HOME LOAN BUSINESS CHAPTER 03_CREDIT LOGEMENT | P.3
Slide 4: SG SFH: Structure Overview
SG SFH: STRUCTURE OVERVIEW Current Structure • EUR 19.0bn of collateralized loans granted by SG SFH to SG. Société Générale (Borrower) • OFH are covered by a direct security over the Cover Pool Société Générale (Servicer) (L.211-38 from French Code Monétaire et Financier “remise Cover Pool en pleine
Slide 5: SG SFH Cover Pool (1/3)
SG SFH COVER POOL (1/3) • Société Générale SFH (Société de Financement de l’Habitat) was created in April 2011 • The inaugural issuance took place in May 2011 Program Term • EUR 25bn EMTN Program • Listing: Euronext Paris At SG SFH level : • Collateralised loans to SG (EUR 19.0bn) Based on a merged
Slide 6: SG SFH Cover Pool (2/3)
SG SFH COVER POOL (2/3) Loan type 100% prime French residential loans guaranteed by Crédit Logement (A+/Aa3/AA) Pool size EUR 23.4bn Number of loans 332,240 (average EUR 71,426 balance remaining per loan) Current WA LTV 61.59% WA Seasoning 60 months Interest rate type 92.5% fixed, 7.5% capped/floore
Slide 7: SG SFH Cover Pool (3/3)
SG SFH COVER POOL (3/3) SG SFH main eligibility criteria : • Legal eligibility criteria Loans granted in Euros Loans governed by French law Borrowers are individuals and not SG Group employees • CRR eligibility criteria Loan to Income (LTI) lower or equal to 33% Loan to Value (LTV) lower
Slide 8: SG SFH Asset Liability Management
SG SFH ASSET LIABILITY MANAGEMENT • The structure has been set up taking into account best ALM practice • Cover Pool (1) : Cover Pool before prepayments • Cover Pool (2) : Cover Pool after prepayments (9.27%) but including home loans reserves and conservative assumptions of new home loans originatio
Slide 9: SG SFH Issuance Outstanding
SG SFH ISSUANCE OUTSTANDING Principal Remaining Interest Rate Isin Issue Date Série Currency Maturity Date Index Amount Maturity Type FR0011056126 06/06/2011 1 EUR 1 500 000 000 06/06/2016 1,9 Fixed Rate 3,250% FR0011180017 18/01/2012 12 EUR 1 250 000 000 18/01/2022 7,6 Fixed Rate 4,000% FR001121551
Slide 10: SG SFH Issuance Programme
SG SFH ISSUANCE PROGRAMME • A successful inaugural transaction launched in 2011: EUR 1.5bn benchmark, June 2016, reoffer MS + 43 bps, annual fixed coupon 3.25% • New issues in 2014 - April 2014 : EUR 0.75bn benchmark, April 2024, reoffer MS + 26 bps, annual fixed coupon 2.0% • With a EUR 10bn issuan
Slide 11: Contents SG SFH
CONTENTS SG SFH CHAPTER 01_SG SFH COVERED BOND PROGRAMME CHAPTER 02_FRENCH HOME LOAN BUSINESS CHAPTER 03_CREDIT LOGEMENT | P.11
Slide 12: Overview of the French Home Loan Market (1/3)
OVERVIEW OF THE FRENCH HOME LOAN MARKET (1/3) FRENCH HOME LOAN MARKET CONTEXT French home loan market • SG Group: EUR 66Bn home loans outstanding French Home Price Index (in base 100 in 2010) to individuals 180 Quarterly French Home Loans origination - Total on a 12-month basis (in EUR Bn) • 64% own
Slide 13: Overview of the French Home Loan Market (2/3)
OVERVIEW OF THE FRENCH HOME LOAN MARKET (2/3) FRENCH HOME LOANS MAIN CHARACTERISTICS: • Guaranteed rather than mortgage loans • Fixed rate loans mostly (capped and floored for FRN) • Amounts lent are based on the borrower’s capacity to repay rather than on the leverage ratio • No home equity loan ma
Slide 14: Overview of the French Home Loan Market (3/3)
OVERVIEW OF THE FRENCH HOME LOAN MARKET (3/3) • The French home loan market is a prime loan market Mainly on existing properties (+/- 2/3) • Default rates remain at low level At national level At Société Générale level Especially when guaranteed by Crédit Logement French market – Loan purpos
Slide 15: SG French Home Loan Business Characteristics
SG FRENCH HOME LOAN BUSINESS CHARACTERISTICS SOCIETE GENERALE FRENCH HOME LOAN BUSINESS Société Générale French Home Loan Business Performing outstanding breakdown as of end of 2013 • Focused on Crédit Logement guarantee Type of loan purpose Second home Owner occupied home 5% • Most of the time
Slide 16: Contents SG SFH
CONTENTS SG SFH CHAPTER 01_SG SFH COVERED BOND PROGRAMME CHAPTER 02_FRENCH HOME LOAN BUSINESS CHAPTER 03_CREDIT LOGEMENT | P.16
Slide 17: Credit Logement / Mutual Guarantee Fund (MGF)
CREDIT LOGEMENT / MUTUAL GUARANTEE FUND (MGF) • The guarantee provided by Credit Logement is based on the contribution of each borrower to the Mutual Guarantee Fund (MGF) • The MGF is a dedicated guarantee on residential mortgage loans: Every borrower benefiting from a Credit Logement guarantee pa
Slide 18: Credit Logement Performance on Its Market
CREDIT LOGEMENT PERFORMANCE ON ITS MARKET • “Guarantee” market share in home loan market: in 2013, guaranteed loans represented 56.6% of the overall residential loans granted in France, vs 40.5% with respect to the mortgage loans (usual mortgage) (*) • Home loan guarantee market: Crédit Logement is
Slide 19: Credit Logement Business Model
CREDIT LOGEMENT BUSINESS MODEL • Crédit Logement provides guarantees of home loans in case of non repayment by borrowers, as an alternative to the traditional registration of a mortgage Each home loan granted by SG and guaranteed by Crédit Logement has to satisfy both Crédit Logement and SG credit
Slide 20: Credit Logement Processes – Granting process
CREDIT LOGEMENT PROCESSES – Granting process • When receiving a guarantee request, in mostly cases through electronic transmission or its extranet, the process works as follows: Internal review of its own register to assess Crédit Logement exposure on this borrower, Automated analysis by the DIA
Slide 21: Credit Logement Processes – Recovery process
CREDIT LOGEMENT PROCESSES – Recovery process • When called on a guarantee, after three unpaid instalments, the process is the following: The recovery analyst, after receiving the whole file from the bank, contacts the borrower and try, within a limited period of time, to get full repayment of unpa
Slide 22: Credit Logement Strengths
CREDIT LOGEMENT STRENGTHS • Crédit Logement is strongly backed by high quality shareholders: Crédit Agricole LCL 3,0% Long term rating BNP Paribas A+ by S&P (under stable outlook) 6,0% 16,5% SG Group Crédit Foncier Aa3 by Moody’s (under stable outlook) 9,5% BPCE Group (excluding CFF) AA by D
Slide 23: SG – Crédit Logement guaranteed home loans performances (1/2)
SG – Crédit Logement guaranteed home loans performances (1/2) • As of end of December 2013 SG Crédit Logement home loans represent 72.5% of the total outstanding of SG French home loans to individuals SG SFH home loans guaranteed by Crédit Logement represent 60% of the total SG Crédit Logement h
Slide 24: SG – Crédit Logement guaranteed home loans performances (2/2)
SG – Crédit Logement guaranteed home loans performances (2/2) 1994 Cumulatedrecoveryratebyvintagerelatedtodefaultedhomeloans 1995 originatedbySG&guaranteedbyCrédit Logement 1996 120% 1997 1998 100% 1999 2000 2001 Cumulated default rate 80% 2002 2003 2004 60% 2005 2006 40% 2007 2008 2009 20% 2010 201
Slide 25: Contacts
CONTACTS Chief Executive Officer Deputy Chief Executive Officer Stéphane LANDON Vincent ROBILLARD Group Treasurer Head of Group Funding SG SFH and SG SCF CEO SG SFH and SG SCF Deputy CEO +33 1 42 13 33 08 +33 1 57 29 53 35 stephane.landon@socgen.com vincent.robillard@socgen.com Covered Bonds Team Di
Slide 26: 16 March 2011
BUILDING TOGETHER TEAM SOCIETE PIRIT GENERALE
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