Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (August 2012)
21 slides from Nordea Bank Abp's debt investor presentation, Aug 24, 2012
Slide 1: Nordea Kredit Investor Presentation 2012 Q2
Nordea Kredit Investor Presentation 2012 Q2 Published 24 August, 2012 Nordea Kredit
Slide 2: Investor Presentation contents and contacts
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 mortgage bonds and covered mortgage bonds. If you have any questions, please feel free to contact either of u
Slide 3: Nordea Kredit – in brief I
Nordea Kredit – in brief I • Founded in 1993, number of employees (in FTEs) 133 (as per 2012 Q2) • Nordea Kredit issues covered mortgage bonds, exclusively • All bonds issued by Nordea Kredit are rated AAA (by S&P) and Aaa (by Moody’s) • Profit before tax 2012, 1H: 539 m DKK and Cost/Income ratio 13
Slide 4: Nordea Kredit – in brief II
Nordea Kredit – in brief II • Late payments by borrowers 2012 Q2: 0.32% (2012 Q1: 0.32%) Residential properties and holiday homes, 3½ months after due date • Average LTV 2012 Q2: 73% (2012 Q1: 72%) • Total capital ratio (2012 Q2) 16.7% and Tier 1 capital ratio 16.7% (excl. transition rules) • Comple
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 4.5 16.5 6.24 9.26 Aaa and AAA rating, % Collateral Score, % 10.2 17.6 n.a. n.a. TPI leeway /Unused uplift 4 3 4 4 Current OC, % OC (over-collateralisation) a
Slide 6: Market shares in per cent of total market
Nordea Kredit – market shares in per cent of total market 16 14 12 10 8 per cent 6 - 4 2 0 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 Other properties Private rental housing Commercial Agriculture Owner occupied dwellings and holiday homes All seg
Slide 7: Profit and increase in net lending
Nordea Kredit – profit and increase in net lending 30 Profit before tax 1200 << Increase in net lending DKK bn for 2012 1H was 539 m DKK Profit before tax DKK m (rhs) >> 25 Increase in net lending DKK bn 1000 Profit before tax DKK m 20 800 15 600 10 400 5 200 0 0 1994 1995 1996 1997 1998 1999 2000 2
Slide 8: Nordea Kredit – mortgage loans at fair value
Nordea Kredit – mortgage loans at fair value CCs I&II, 2012 Q2: DKK 348.1 bn Nordea Kredit has two capital centres: • CC I: Mortgage Bonds (Realkreditobligationer, “RO”) are issued out of CC I (1993 - ). More CC I, RO: than 97% of the bonds in CC I are 66.6 bn, grandfathered covered bonds 19.1 per c
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: All property categories
All property categories CCs I & II 2012 Q2 at fair value: 348.1 bn DKK Distribution of loans by property category 44.1bn DKK 13% 7,1bn DKK 2% 37.1bn DKK 11% 239.5bn DKK 69% 20.3bn DKK 6% Owner occ. dwellings & holiday homes Private rental housing Commercial Agriculture Other properties 10
Slide 11: All property categories – by loan type
All property categories CCs I & II, 2012 Q2 at fair value: DKK 348.1 Distribution of loans by loan type 13,9bn DKK, 4% 21bn DKK, 6% 3,8bn DKK, 1% 71,5bn DKK, 20% 2,7bn DKK, 1% DKK 60.4 bn 17.6% 58,4bn DKK, 17% Fixed Fixed IO ARM ARM IO FRN capped FRN capped IO FRN 114,9bn DKK, 33% FRN IO 61,9bn DKK,
Slide 12: Residential properties and holiday homes
Residential properties and holiday homes CCs I & II, 2012 Q2 at fair value: DKK 239.5 bn Distribution of loans by loan type 3,7bn DKK, 2% 2,4bn DKK, 1% 59,8bn DKK, 25% 85,3bn DKK, 36% DKK 60.4 bn 17.6% Fixed Fixed IO ARM ARM IO FRN capped FRN capped IO 36,8bn DKK, 15% 51,5bn DKK, 21% 12
Slide 13: Geographical distribution of loans, 2012 Q2
Nordea Kredit – geographical distribution of loans, 2012 Q2 Fair value, all segments: 348.1 bn DKK - residential properties & holiday homes: 239.5 bn DKK 15.8 bn DKK 4.5%* 10.2 bn DKK 4.3%** North (0.58 m citizens – 10.4%) Denmark Region 128.4 bn DKK 36.9%* 97.0 bn DKK 40.5%** 81.9 bn DKK 23.5%* (1.
Slide 14: 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 5 years 25 per cent Holiday homes 5 years 25 per cent Subsidized property 1
Slide 15: Asset quality - late payments by borrowers, 2012 Q2
Asset quality - late payments by borrowers, 2012 Q2 0,60 Residential properties and holiday homes, arrears as a percentage All mortgage banks 0.32% of the total amount due ‐ 3½ month after due date (last 0.34%) 0,50 All Danish MCIs * Nordea Kredit 0,40 per cent 0,30 0,20 Nordea Kredit 0.32% (last 0.
Slide 16: Losses in per cent of mortgage loans at nominal value
Losses in per cent of mortgage loans at nominal value, 2012 Q2 400.000 0,40% Mortgage loans nominal value, mDKK Losses % of mortgage loans, nominal value 350.000 0,35% Mortgage loans at nominal value 300.000 Loss for the year in per cent of mortgage 0,30% loans at nominal value (rhs) 250.000 0,25% 2
Slide 17: LTV, loan-to-value 2012 Q2 (2012 Q1)
Nordea Kredit – LTV, loan-to-value 2012 Q2 (2012 Q1) LTV CC I & II LTV CC I LTV CC II 2012Q2 2012Q1 2012Q2 2012Q1 2012Q2 2012Q1 Owner occupied 80 79 75 74 82 81 dwellings Private rental housing 66 66 60 59 67 67 Commercial 61 61 44 44 62 63 Agriculture 50 50 45 45 51 51 Other properties 39 43 41 42
Slide 18: 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 19: The Danish economy - house prices and foreclosures
The Danish economy - house prices and foreclosures 2000 numbers per month numbers per month 2000 15000 DKK per sqm Foreclosures House prices DKK per sqm 25000 14000 1750 1750 22500 13000 1500 1500 12000 20000 11000 17500 1250 1250 10000 Flats >> 1000 1000 15000 9000 12500 750 750 8000 7000 << Houses
Slide 20: Large household net wealth
Large household net wealth Source: The Danish Central Bank After reaching a historical low in 2006, households have taken advantage of recent years’ gains in disposable incomes to boost their savings. Despite a large gross debt the net household wealth of the Danish households is very sound. This is
Slide 21: 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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