Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (February 2015)
20 slides from Nordea Bank Abp's debt investor presentation, Feb 13, 2015
Slide 1: Nordea Kredit Investor Presentation 2014 Q4
Nordea Kredit Investor Presentation 2014 Q4 Published 13 February, 2015 Nordea Kredit
Slide 2: 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 covered mortgage bonds and mortgage bonds. If you have any questions, please feel free to contact: Finn Nicolai
Slide 3: Nordea Kredit – in brief I
Nordea Kredit – in brief I • Founded in 1993, number of employees (in FTEs) 114 (as per 2014 Q4) • New issues are covered mortgage bonds (SDROs), exclusively • All bonds issued by Nordea Kredit are rated AAA (by S&P) and Aaa (by Moody’s) • Profit before tax 2014, DKK 1,775m and Cost/Income ratio 8.6
Slide 4: Nordea Kredit – in brief II
Nordea Kredit – in brief II • Average LTV 2014 Q4: 68% (2014 Q3: 68%) • Total capital ratio at end of 2014 Q4: 28.6% and Tier 1 capital ratio 28.6% (excl. transitional rules) • Completely match funded “Pass Through” setup complying with the Danish specific balance principle • Late payments by borrow
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 3.0 10.0 6.41 7.99 Aaa and AAA rating, % TPI leeway/Unused uplift 5 4 4 4 OC per Q4 2014, % CC1: 9.90 OC and CE requirements as set by Moody´s and S&P, respec
Slide 6: Nordea Kredit's market shares - outstanding loans
Nordea Kredit`s market shares - outstanding loans in per cent of all Danish mortgage credit loans 18 16 14 12 10 per cent 8 6 - 4 2 0 2011 Q42012 Q12012 Q22012 Q32012 Q42013 Q12013 Q22013 Q32013 Q42014 Q12014 Q22014 Q32014 Q4 Other properties Private rental housing Commercial Agriculture Owner occup
Slide 7: Nordea Kredit profit and net lending
Nordea Kredit – profit and net lending 2000 30 Profit before tax << Increase in net lending DKK bn for 2014 was Profit before tax DKK m (rhs) >> DKK 1,775m 25 1600 Net lending DKK bn Profit before tax DKK m 20 1200 15 800 10 400 5 0 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 8: Nordea Kredit capital centres
Nordea Kredit capital centers CCs I&II, 2014 Q4: DKK 381.3bn Nordea Kredit has two capital centres: (mortgage loans at fair value) • CC I: Mortgage Bonds (Realkreditobligationer, “RO”) No open CC I, RO: series. Almost 88% of the bonds DKK 26.5bn, in CC I are grandfathered covered 7.0 % bonds accordi
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: Loan portfolio split by property category
Nordea Kredit – loan portfolio split by property category Capital centres I & II, 2014, Q4 at fair value: DKK 381.3bn Distribution of all loans by property category DKK 47.5bn, 12.5% DKK 9.8bn, 2.6% DKK 41.4bn, 10.8% DKK 256.6bn, 67.3% Owner occ. dwellings & holiday homes DKK 26.0bn, 6.8% Private re
Slide 11: Loan portfolio - loan type split
Nordea Kredit – loan portfolio - loan type split Capital centres I & II, 2014, Q4 at fair value: DKK 381.3bn Distribution of all loans by loan type DKK 25.9bn, 6.8% DKK 41.7bn, 10.9% DKK 91.4bn, 24.0% DKK 3.7bn, 1.0% DKK 2.6bn, 0.7% DKK 60.4 bn 17.6% DKK 55.8bn, 14.6% Fixed Fixed IO ARM ARM IO FRN c
Slide 12: Loan portfolio - loan type split developments
Nordea Kredit – loan portfolio - loan type split (Developments from 2013, Q4 - 2014, Q4 – nominal value) 12
Slide 13: Loan type split for owner occupied dwellings
Nordea Kredit – loan type split for owner occupied dwellings Owner occupied dwellings and holiday homes, capital centres I & II, 2014, Q4 at fair value: DKK 256.6bn Distribution of loans by loan type DKK 2.5bn, 1.0% DKK 3.5bn, 1.4% DKK 4.7bn, 1.8% DKK 2.4bn, 0.9% DKK 74.8bn, 29.2% DKK 82.2bn, 32.0%
Slide 14: Loans by Danish regions and property categories
Nordea Kredit - loans by Danish regions and property categories Capital centres I & II, 2014, Q4 at fair value: All property categories: DKK 381.3bn Owner occupied dwellings & holiday homes: DKK 256.6bn Geographical distribution by Danish regions DKK 17.4bn, 4.6%* DKK 10.8bn, 4.2%** North (0.58m cit
Slide 15: Asset quality - late payments by borrowers, 2014 Q3
Asset quality - late payments by borrowers, 2014 Q3 0.70 Owner occupied dwellings and holiday homes, arrears as a percentage of the Q3, 2014 scheduled payments - 3½ months after due date 0.60 All mortgage banks* Nordea Kredit All mortgage 0.50 banks 0.25% (last 0.26%) per cent 0.40 0.30 0.20 Nordea
Slide 16: 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 Lifetime of loan 25 per cent Holiday homes Lifetime of loan 25 per cent Sub
Slide 17: Net losses in per cent of mortgage loans
Net losses in per cent of mortgage loans at nominal value 400,000 0.50% Mortgage loans nominal value, DKKm Losses % of mortgage loans, nominal value 350,000 Mortgage loans at nominal value 0.40% 300,000 Net loss for the year in per cent of mortgage loans at nominal value (rhs) 250,000 0.30% 200,000
Slide 18: LTV, loan-to-value 2014 Q4 (2014 Q3)
Nordea Kredit – LTV, loan-to-value 2014 Q4 (2014 Q3) LTV CC I & II LTV CC I LTV CC II 2014Q4 2014Q3 2014Q4 2014Q3 2014Q4 2014Q3 Owner occupied 75 74 74 73 75 74 dwellings Private rental housing 62 63 77 76 61 62 Commercial 57 57 49 50 57 57 Agriculture 50 50 47 47 51 50 Other properties 35 35 39 41
Slide 19: 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 20: 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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