Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — Danske Mortgage Bank — Debt Investor Presentation (September 2019)
23 slides from Danske Bank A/S's debt investor presentation, September 2019
Slide 1: Danske Mortgage Bank Plc – Investor Presentation
Danske Mortgage Bank Plc– Investor Presentation September 2019
Slide 2: Agenda
Danske Mortgage Bank Q2 2019 Agenda 1 Danske Bank Group 2 Danske Bank – Banking Finland 3 Danske Mortgage Bank Plc 4 Finnish Covered Bond Framework 5 Contacts 1
Slide 3: Danske Bank Group
Danske Bank Group Bank
Slide 4: Executive summary: Difficult first half; net profit down 24% from H1 2018
Danske Mortgage Bank Q2 2019 Executive summary: Difficult first half; net profit down 24% from H1 2018 and 2019 net profit outlook lowered to DKK 13-15 bn DKK 7.0 bn Net profit, down 24% from H1 2018 due to lower Loan growth of 3% y/y, driven by growth of NII, higher expenses and higher loan impairm
Slide 5: Digitalisation and automation of core AML processes will increase accuracy and reduce labour-intensive tasks
Danske Mortgage Bank Q2 2019 Digitalisation and automation of core AML processes will increase accuracy and reduce labour-intensive tasks going forward Short-term investments: Upstaffing across AML functions in the Group, including strengthened 1st and 2nd lines of defence Long-term investments: Dig
Slide 6: Danske Bank covered bond universe, a transparent pool structure
Danske Bank covered bond universe, a transparent pool structure1 Residential mortgages from • Denmark, D-pool • Norway, I-pool + • Sweden, Danske Hypotek AB C-pool (AAA/AAA) • Finland, Danske Mortgage Bank Plc Commercial mortgages from Finland • Sweden and Norway, C-pool Norway Sweden Danske Mortgag
Slide 7: Danske Bank – Banking Finland
Danske Bank – Banking Finland - Strategy in Finland
Slide 8: Our strategy is to be a focused challenger with a winning culture and mindset
Danske Mortgage Bank Q2 2019 Our strategy is to be a focused challenger with a winning culture and mindset WIN IN SELECTED MOBILISE FOCUS SEGMENTS INTEGRATOR STRATEGY Urban achievers in Retail DEFENSIVE PLAY AMONG OTHER EMBRACE SEGMENTS CHALLENGER CULTURE AND MINDSET 7
Slide 9: Challenge the market and become #1 choice for the highly educated Urban Achievers
Danske Mortgage Bank Q2 2019 Challenge the market and become #1 choice for the highly educated ”Urban Achievers” Urban Achievers Total population of Finland 5,5 M Criteria Geography Education Income Live in largest Have high Earn more than cities education average income Share of SME customers in Ur
Slide 10: Danske Mortgage Bank - Structure and expected development
Danske Mortgage Bank - Structure and expected development
Slide 11: Danske Mortgage Bank Plc in Brief
Danske Mortgage Bank Q2 2019 Danske Mortgage Bank Plc in Brief • 100% owned subsidiary of Danske Bank A/S • Operates as a mortgage credit institution with the purpose of issuing covered bonds • Licensed by the European Central Bank to issue covered bonds according to the Finnish covered bond legisla
Slide 12: Operating model
Danske Mortgage Bank Q2 2019 Operating model Danske Bank Group has a strong commitment to DANSKE BANK A/S the Finnish mortgage market • DMB was established in demerger in 10/2017, DANSKE MORTGAGE DANSKE BANK A/S and undertakes the mortgage banking activities of BANK PLC FINLAND BRANCH Danske Bank Pl
Slide 13: Danske Bank - Underwriting criteria
Danske Mortgage Bank Q2 2019 Danske Bank - Underwriting criteria Residential mortgages • Credit decision is based on the customers´ repayment capacity • Repayment capacity is calculated using stressed scenario • Customer income must be verified • Credit bureau check (Suomen Asiakastieto) is always c
Slide 14: Governance model
Danske Mortgage Bank Q2 2019 Governance model Governance, Funding, Hedging, Liquidity and Capitalisation Governance model Funding • DMB will fund itself primarily in the European Covered Bond market • DMB’s short and medium term funding is provided by the parent Governance model Hedging • Danske Ban
Slide 15: Danske Mortgage Bank Plc pool characteristics
Danske Mortgage Bank Q2 2019 Danske Mortgage Bank Plc pool characteristics (as of 30th June 2019) Regional distribution by loan volume, % Pool notional EUR 5.5bn Collateral type 100% residential mortgages to private individuals (Retail) Number of Loans 72,279 6%2% Number of Borrowers 86,775 7% Numbe
Slide 16: Danske Mortgage Bank Plc, Balance Sheet
Danske Mortgage Bank Q2 2019 Danske Mortgage Bank Plc, Balance Sheet Balance sheet MEUR 6/2019 12/2018 12/2017 Change YTD Cash 165 188 146 -23 Loans to Customers 5 582 5 501 5 259 81 Trading portfolio assets 119 126 158 Investment securities, bonds 40 45 0 Tax assets 1 0 - Other assets 3 2 3 Total a
Slide 17: Key takeaways on Danske Mortgage Bank Plc
Danske Mortgage Bank Q2 2019 Key takeaways on Danske Mortgage Bank Plc 1. Wholly owned subsidiary of Danske Bank A/S to issue Finnish covered bond 2. Cover pool is 100% residential Finnish mortgages 3. Solid and well-diversified cover pool 4. Euro-area covered bond issuer regulated by Finnish Financ
Slide 18: Finnish Covered Bond Framework
Finnish Covered Bond Framework
Slide 19: Overview of Finnish Legislation Relating to Covered Bonds
Danske Mortgage Bank Q2 2019 Overview of Finnish Legislation Relating to Covered Bonds • Legal Framework Finnish Covered Bond Act (statute 688/2010) • Issuance only credit institutions by authorised by FIN-FSA and ECB • Compliance supervised by FIN-FSA • Daily registration requirement of covered bon
Slide 20: Overview of Finnish Legislation Relating to Covered Bonds
Danske Mortgage Bank Q2 2019 Overview of Finnish Legislation Relating to Covered Bonds • Bankruptcy remoteness and preferential claim − covered bond shall be paid until its maturity in accordance with the terms and conditions of the covered bond from the funds accruing on the cover pool assets of th
Slide 21: Danske Mortgage Bank – Contacts
Danske Mortgage Bank – Contacts
Slide 22: Contacts
Danske FinancialMortgage Bank results for Q2 2019 Q1 2013 Contacts Pekka Toivonen Claus Ingar Jensen CEO, Danske Mortgage Bank Plc Head of IR Direct: +358 (0)10 546 7718 Direct: +45 45 12 84 83 Mobile: +358 (0)45 121 7037 Mobile: +45 25 42 43 70 E-mail: pekka.toivonen@danskebank.fi E-mail: clauj@dan
Slide 23: Disclaimer
Danske Mortgage Bank Q2 2019 Disclaimer Important Notice This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Danske Bank Group including Danske Mortgage Bank Plc in any jurisdi
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