Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (May 2010)
17 slides from Nordea Bank Abp's debt investor presentation, May 6, 2010
Slide 1: Nordea Kredit Investor Presentation – 2010 Q1
Nordea Kredit Investor Presentation – 2010 Q1 Published 6 May 2010
Slide 2: Contents
The 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 us: Finn Nic
Slide 3: Nordea Kredit – in brief I
Nordea Kredit – in brief I • Founded in 1993, number of employees 138 • Nordea Kredit issues mortgage bonds and covered mortgage bonds • All bonds issued by Nordea Kredit are rated AAA (S&P) and Aaa (Moody’s) • Profit before tax 2009: 908 m DKK, RoE 6,5%, Cost/Income ratio 16.9% • Mortgage loans at
Slide 4: Nordea Kredit – in brief II
Nordea Kredit – in brief II • Late payments by borrowers 2010 Q1: 0.47% (2009 Q4: 0.47%) Residential properties and holiday homes, 3½ month after due date • Average LTV 2010 Q1: 66% (2009 Q4: 66%) • Total capital ratio 9.9% and Tier 1 capital ratio 10.3% (2009) • Completely match funded “Pass Throug
Slide 5: Nordea Kredit – in brief III
Nordea Kredit – in brief III 35 1400 << Increase in net lending DKK bn Profit before tax DKK m (rhs) >> 30 Number of employees (rhs) >> 1200 << Market share (per cent of total amount of bonds issued by Danish MCIs) 25 1000 20 800 15 600 10 400 5 200 0 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2
Slide 6: Nordea Kredit – Capital Centres 1 & 2 (CC I & II)
Nordea Kredit – Capital Centres 1 & 2 (CC I & II) Mortgage loans at fair value 2010 Q1: DKK 302.7 bn • Nordea Kredit has two capital centres: – CC I: Mortgage Bonds (Realkreditobligationer, “RO”) are issued out of CC I (1993 ‐ ), however only 1 ISIN is presently open for issuance. More CC I, RO than
Slide 7: Match funded setup due to the strict Balance Principle
Match funded setup due to the strict Balance Principle Interest Interest payment payment Borrower Investor Principal Principal payment payment Contribu‐ tion fee Nordea Kredit complies with the strict Balance Principle, and has a completely match funded “Pass Through” setup. Nordea Kredit has no pre
Slide 8: Nordea Kredit – distribution of loans by type
Nordea Kredit – distribution of loans by type All segments ‐ CC I & II, 2010 Q1 at fair value: 302.7 bn DKK DKK 48.7 bn 16.1% DKK 84.2 bn 27.8% DKK 1.7 bn 0.5% DKK 65.1 bn Fixed 21.5% DKK 16.5 bn Fixed IO 5.5% ARM ARM IO DKK 2.4 bn DKK 74.2 bn FRN capped 0.8% 24.5% FRN capped IO FRN DKK 9.9 bn 3.3%
Slide 9: Nordea Kredit – distribution of loans by type
Nordea Kredit – distribution of loans by type Residential properties and holiday homes ‐ CC I & II, 2010 Q1 at fair value: 212.3 bn DKK Fixed DKK 26.9 bn Fixed IO 12.7% ARM DKK 59.0 bn ARM IO 27.8% DKK 60.8 bn FRN capped 28.6% FRN capped IO FRN FRN IO DKK 1.5 bn DKK 61.8 bn 0.7% 29.1% DKK 2.2 bn 1.1
Slide 10: Nordea Kredit – geographical distribution of loans
Nordea Kredit – geographical distribution of loans CC I & CC II 2010 Q1, all segments: mortgage loans at fair value 302.7 bn DKK Residential properties and holiday homes: mortgage loans at fair value 212.3 bn DKK 13.4 bn DKK 4.4%* 8.7 bn DKK 4.1%** North Denmark (0.58 m citizens – 10.5%) Region 108.
Slide 11: 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 housing 5 years 25 per cent Holiday homes 5 years 25 per cent Subsidized property 10
Slide 12: Asset quality - late payments by borrowers
Asset quality ‐ late payments by borrowers ‐ 3½ month after due date 0,60 Residential properties and holiday homes 0.60% Arrears as a percentage of the total amount due (last 0.57%) 0,50 0.47% 0,40 (last 0.47%) per cent 0,30 All Danish MCIs * 0,20 Nordea Kredit 0,10 0,00 2001Q1 2001Q2 2001Q3 2001Q4
Slide 13: Losses in per cent of mortgage loans at nominal value
Losses in per cent of mortgage loans at nominal value 300.000 0,0100% Mortgage loans at nominal value Mortgage loans nominal value, Losses % of mortgage loans, 250.000 Loss for the year in per cent of mortgage 0,0075% loans at nominal value (rhs) nominal value 200.000 mDKK 150.000 0,0050% 100.000 0,
Slide 14: Nordea Kredit – LTV, loan-to-value 2010 Q1 (2009 Q4)
Nordea Kredit – LTV, loan‐to‐value 2010 Q1 (2009 Q4) LTV CC I & II LTV CC I LTV CC II 2010Q1 2009Q4 2010Q1 2009Q4 2010Q1 2009Q4 Owner occupied dwellings 72 73 68 69 76 77 Rental 64 63 61 61 67 66 Industry and Trade 51 51 44 44 66 66 Office and Retail 58 56 49 49 62 60 Agriculture 47 45 43 42 48 47 O
Slide 15: Legislation
Legislation • Danish mortgage financing is closely regulated and supervised by the Danish FSA (Finanstilsynet, DFSA) • Some legislation can be found in English at the DFSA’s English website: http://www.dfsa.dk/sw7804.asp • All relevant legislation can be found in Danish at the DFSA’s Danish website:
Slide 16: Macro economics - house prices and foreclosures
Macro economics ‐ house prices and foreclosures 25.000 23.000 For a number of years house prices increased 21.000 but by mid‐2006 house prices peaked and DKK per sqm 19.000 subsequently declined. 17.000 15.000 Recently, however, minor increases have been 13.000 seen. 11.000 Detached houses 9.000 Apa
Slide 17: Disclaimer
Disclaimer: The information provided herein is intended for background information only and for the sole use of the intended recipient. The information provided herein is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation
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