Sparebanken Ost · OSL:SPOG

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

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

  1. Slide 1: Sparebanken Øst Boligkreditt AS Investor presentation

    Sparebanken Øst Boligkreditt AS Investor presentation 30.09.2011 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 September 30th 2011 unless otherwise sta

  3. Slide 3: Norwegian economy

    Norwegian economy • Mixed economy with heavy state Current account balance % GDP 2010 ownership in strategic areas 0tan20ar20 • One of the wealthiest countries in the 0tan15ar15 world, low impact from financial crisis 0tan10ar10 0tan5ar5 • Oil, fishery and technology export 0tan0ar0 Euro area (14… U

  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 27.5 bn. NOK (≈€3.5 bn.) • Moody’s rating bank: A3/P-2 stable • Equity instrument «SPOG» Oslo Stock Exchange • Q3 2011 – After tax ROE 10.3% – CAR / Tier 1 15.5% / 13.8% 5 Frode Lindbeck

  6. Slide 6: Consolidated loan book

    Consolidated loan book Abroad 00 % Services 02 % Financial services 01 % Trade 02 % Transport 00 % Real estate 14 % Industry 01 % Construction 03 % Agriculture, forestry, fishing 01 % Mortgages (bank) 42 % AS Financiering (car loans) 06 % Credit Cards 00 % Mortgages (CB company) 28 % 6 Frode Lindbec

  7. Slide 7: Summary Q3 2011

    Summary Q3 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 86,9 % Share in housing association 13,1 % 0% 20 % 40 % 60 % 80 % 100 % 0% 20 % 40 % 60 % 80 % 100 % Detached House 80,3 % Detached House 4,0 % Condominium 14,5 % Condominium 82,0 % Semi Detached 5,1 % Semi Detached 14,0 % Other 0,1 % 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 37,5 % Akershus 22,6 % Oslo 18,0 % Vestfold 7,1 % Rogaland/Hordaland 5,9 % Østfold 3,3 % Northwest/Trøndelag 2,3 % Telemark/Agder 1,7 % Hedmark\Oppland 0,9 % Nordland\Troms\Finnmark 0,8 % • Distribut

  11. Slide 11: Seasoning

    Seasoning 3.000 MNOK 2.500 2.000 1.500 1.000 500 2.655 2.100 977 293 16 0 0-1 1-3 3-5 5-10 10+ Years • Weighted average seasoning: 1.85 years • Approx. 21% of the cover pool is >3 years seasoned Frode Lindbeck

  12. Slide 12: Loan to Value

    Loan to Value MNOK 1.600 1.400 1.200 1.000 800 600 400 200 93 357 659 1.036 1.219 1.389 1.241 43 2 0 0- 10- 20- 30- 40- 50- 60- 70- 80- 10% 20% 30% 40% 50% 60% 70% 80% 90% • Weighted average LTV = 45.3% • Approx. 79% of the cover pool has an LTV < 60% • There are none non-performing or impaired loan

  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 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 % 3Q11 6.040.633 4.750.000 27 % 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.

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