Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (February 2013)
19 slides from Nordea Bank Abp's debt investor presentation, Feb 11, 2013
Slide 1: Nordea Kredit Investor Presentation 2012 Q4
Nordea Kredit Investor Presentation 2012 Q4 Published 11 February, 2013 Nordea Kredit
Slide 2: Purpose of presentation and contents
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) 131 (as per 2012 Q4) • 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, 938m DKK and Cost/Income ratio 14.0% •
Slide 4: Nordea Kredit – in brief II
Nordea Kredit – in brief II • Late payments by borrowers 2012 Q4: 0.29% (2012 Q3: 0.31%) (Residential properties and holiday homes, 3½ months after due date) • Average LTV 2012 Q4: 72% (2012 Q3: 72%) • Total capital ratio (2012 Q4) 16.2% and Tier 1 capital ratio 16.2% (excl. transition rules) • Comp
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 4.0 14.0 6.24 9.26 Aaa and AAA rating, %* TPI leeway/Unused uplift 4 3 4 4 *OC (over-collateralisation) and TPI leeway as measured by Moody´s CE (credit enhan
Slide 6: Market shares in per cent of total market
Nordea Kredit – market shares in per cent of total market 18 16 14 12 10 per cent 8 6 - 4 2 0 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 Other properties Private rental housing Commercial Agriculture Owner occupied dwellings and holiday homes All
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 was 938 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 2001
Slide 8: Nordea Kredit – mortgage loans at fair value
Nordea Kredit – mortgage loans at fair value CCs I&II, 2012 Q4: DKK 358.5 bn Nordea Kredit has two capital centres: • CC I: Mortgage Bonds (Realkreditobligationer, “RO”) No open series. More than 93% of CC I, RO: the bonds in CC I are 52.4 bn DKK, grandfathered covered bonds 14.6 % according to UCIT
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: Nordea Kredit – loans by property category
Nordea Kredit – loans by property category Capital centres I & II, 2012, Q4 at fair value: 358.5 bn DKK Distribution of all loans by property category 45.5bn DKK 12.7% 7.5bn DKK 2.1% 37.5bn DKK 10.5% 246.5bn DKK 68.7% 21.5bn DKK 6.0% Owner occ. dwellings & holiday homes Private rental housing Commer
Slide 11: Nordea Kredit - loans by loan type
Nordea Kredit - loans by loan type Capital centres I & II, 2012, Q4 at fair value: DKK bn 358.5 Distribution of all loans by loan type 14.5bn DKK, 4.0% 22bn DKK, 6.1% 3.9bn DKK, 1.1% 78.4bn DKK, 21.9% 2.7bn DKK, 0.8% DKK 60.4 bn 17.6% 58.8bn DKK, 16.4% Fixed Fixed IO ARM ARM IO FRN capped FRN capped
Slide 12: Nordea Kredit - loans by loan type II
Nordea Kredit - loans by loan type II Owner occupied dwellings and holiday homes, capital centres I & II, 2012, Q4 at fair value: DKK 246.5 bn Distribution of loans by loan type 3.7bn DKK, 1.5% 2.5bn DKK, 1.0% 65.7bn DKK, 26.6% 86.3bn DKK, 35.0% DKK 60.4 bn 17.6% Fixed Fixed IO ARM ARM IO FRN capped
Slide 13: Nordea Kredit - loans by regions and property categories
Nordea Kredit - loans by regions and property categories Capital centres I & II, 2012, Q4 at fair value: All property categories: 358.5 bn DKK Owner occupied dwellings & holiday homes: 246.5 bn DKK Geographical distribution by Danish regions 16.5 bn DKK 4.6%* 10.6 bn DKK 4.3%** North (0.58 m citizen
Slide 14: Asset quality - late payments by borrowers, 2012 Q4
Asset quality - late payments by borrowers, 2012 Q4 0.60 Owner occupied dwellings and holiday homes, arrears as a percentage of the scheduled payment - 3½ month after due date All mortgage 0.50 banks 0.31% (last 0.32%) All Danish MCIs * Nordea Kredit 0.40 per cent 0.30 0.20 Nordea Kredit 0.29% (last
Slide 15: 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 16: Losses % of mortgage loans, nominal value
Net losses in per cent of mortgage loans at nominal value 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 Net loss for the year in per cent of mortgage 0.30% loans at nominal value (rhs) 250,000 0.25% 20
Slide 17: Nordea Kredit – LTV, loan-to-value
Nordea Kredit – LTV, loan-to-value 2012 Q4 2012 Q3 LTV CC I & II LTV CC I LTV CC II 2012Q4 2012Q3 2012Q4 2012Q3 2012Q4 2012Q3 Owner occupied 79 79 75 74 80 80 dwellings Private rental housing 67 66 69 62 66 67 Commercial 60 61 46 44 60 62 Agriculture 51 51 47 46 51 51 Other properties 39 39 41 41 39
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: 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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