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Societe Generale S.A. Class A — Societe Generale SFH — Debt Investor Presentation (April 2014)
29 slides from Societe Generale S.A. Class A's debt investor presentation, April 2014
Slide 1: Societe Generale SFH Home Loan Covered Bond Programme
SOCIETE GENERALE SFH HOME LOAN COVERED BOND PROGRAMME INVESTOR PRESENTATION April 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 APPENDIX: SG CL GUARANTEED HOME LOANS HISTORICAL PERFORMANCE | P.3
Slide 4: SFH - Sociétés de Financement de l'Habitat
SFH - “SOCIETES DE FINANCEMENT DE L’HABITAT” • Specific law voted by French Parliament in October 2010 reinforcing the legal framework of “Sociétés de Crédit Foncier” and establishing “Sociétés de Financement de l’Habitat” (Home Legal Financing Companies). Framework • Issuer is a specialized credit
Slide 5: Obligations de Financement de l'Habitat: Highest level of investor protection
Obligations de Financement de l’Habitat: Highest level of investor protection • Statutory “Privilège”. Principal and interests of the covered bonds benefit from the so called “Privilège” (priority right of payment). • Assets Eligibility Criteria. Only assets that perfectly match the legal eligibilit
Slide 6: SG SFH: Structure Overview
SG SFH: STRUCTURE OVERVIEW Current Structure • Assets are comprised of: 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 “re
Slide 7: SG SFH: Monitoring and Supervision
SG SFH: MONITORING AND SUPERVISION • Specific Controller required by law to ensure permanent and proper supervision over the assets refinanced through OFH issuance (Art. L513-23 of the Code Monétaire et Financier) Annual report from the Specific Controller to the French regulator (ACP) displaying
Slide 8: SG SFH Cover Pool (1/2)
SG SFH COVER POOL (1/2) 100% prime French residential loans guaranteed by CREDIT LOGEMENT (A+/Aa3 LOAN TYPE S&P/Moody’s) POOL SIZE EUR 23.1Bn NUMBER OF LOANS 334,069 (average EUR 69,252 balance remaining per loan) CURRENT WA LTV 60.84% WA SEASONING 57 months INTEREST RATE TYPE 93.04% fixed, 6.96% ca
Slide 9: SG SFH Cover Pool (2/2)
SG SFH COVER POOL (2/2) • SG SFH main eligibility criteria Loans granted in Euros Loans governed by French law The financed property is a residential property, located in France Loans are secured by a guarantee granted by Crédit Logement At the date on which the loan is selected to enter i
Slide 10: SG SFH Asset Liability Management (1/2)
SG SFH ASSET LIABILITY MANAGEMENT (1/2) • The structure has been set up taking into account best ALM practice WAL Cover Pool as of 31 December 2013: 8.13Y WAL OFH as of 31 December 2013: 8.26Y Société Générale SFH Société Générale OutstandingOFH Asset-LiabilityManagement Total nominal amount (ME
Slide 11: SG SFH Issuance Programme (1/3)
SG SFH ISSUANCE PROGRAMME (1/3) • A successful inaugural transaction: EUR 1.5bn benchmark, June 2016, reoffer MS + 43 bps, annual fixed coupon 3.25%: • Issues in the year 2012 - January 2012 : EUR 1.25bn benchmark, January 2022, reoffer MS + 170 bps, annual fixed coupon 4.00% - March 2012 : EUR 1.5b
Slide 12: SG SFH Issuance Programme (2/3)
SG SFH ISSUANCE PROGRAMME (2/3) 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 2,6 Fixed Rate 3,250% FR0011180017 18/01/2012 12 EUR 1 250 000 000 18/01/2022 8,3 Fixed Rate 4,000% FR00112
Slide 13: Contents SG SFH
CONTENTS SG SFH CHAPTER 01_SG SFH COVERED BOND PROGRAMME CHAPTER 02_FRENCH HOME LOAN BUSINESS CHAPTER 03_CREDIT LOGEMENT APPENDIX : SG CL GUARANTEED HOME LOANS HISTORICAL PERFORMANCE | P.13
Slide 14: 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 53.9Bn home loans French Home Price Index (in base 100 in 2010) outstanding to individuals 180 Quarterly French Home Loans origination - Total on a 12-month basis (in EUR Bn) • 63%
Slide 15: 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 • Amounts lent are based on the borrower’s capacity to repay rather than on the leverage ratio • No home equity loan market Portion of fixed rate loans in
Slide 16: Overview of the French Home Loan Market (3/3)
OVERVIEW OF THE FRENCH HOME LOAN MARKET (3/3) FRENCH MARKET BASED ON: • The French home loan market is a prime loan market Mainly on existing properties (+/- 60 %) • Default rates remain at low level At national level At Société Générale level Especially when guaranteed by Crédit Logement Do
Slide 17: 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 18: Contents SG SFH
CONTENTS SG SFH CHAPTER 01_SG SFH COVERED BOND PROGRAMME CHAPTER 02_FRENCH HOME LOAN BUSINESS CHAPTER 03_CREDIT LOGEMENT APPENDIX : SG CL GUARANTEED HOME LOANS HISTORICAL PERFORMANCE | P.18
Slide 19: 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 20: Credit Logement Performance on its Market
CREDIT LOGEMENT PERFORMANCE ON ITS MARKET • “Guarantee” market share in home loan market: in 2012, guaranteed loans represented 56% of the overall residential loans granted in France, vs 41% with respect to the mortgage loans (usual mortgage) (**) • Home loan guarantee market: Crédit Logement is the
Slide 21: 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 22: 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 23: 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 24: Credit Logement Strengths
CREDIT LOGEMENT STRENGTHS • Crédit Logement is strongly backed by high quality shareholders: Long term rating Crédit Agricole LCL A+ by S&P (under stable outlook) 3,0% BNP Paribas Aa3 by Moody’s (under stable outlook) 6,0% SG Group 16,5% Commitment of partners and shareholders to rebuild the
Slide 25: Contents SG SFH
CONTENTS SG SFH CHAPTER 01_SG SFH COVERED BOND PROGRAMME CHAPTER 02_FRENCH HOME LOAN BUSINESS CHAPTER 03_CREDIT LOGEMENT APPENDIX : SG CL GUARANTEED HOME LOANS HISTORICAL PERFORMANCE | P.25
Slide 26: 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 27: 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 28: Contacts
CONTACTS Chief Executive Officer Deputy Chief Executive Officer Stéphane LANDON Vincent ROBILLARD Group Treasurer Head of Group Medium & Long Term Funding SG SFH Chairman CEO SG SFH Deputy CEO +33 1 42 13 33 08 +33 1 57 29 53 35 stephane.landon@socgen.com vincent.robillard@socgen.com Covered Bonds T
Slide 29: 16 March 2011
BUILDING TOGETHER TEAM SOCIETE PIRIT GENERALE
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