Nordea Kredit Investor Presentation 2012 Q2 Published 24 August, 2012 Nordea Kredit
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 us: Finn Nicolaisen, Nordea Group Treasury, Head of Group Funding Copenhagen, phone +45 3333 1625 Peter Brag, Nordea Group Treasury, Senior Dealer, Group Funding Copenhagen, phone +45 3333 1663 Contents: Nordea Kredit – in brief • Asset quality, losses and arrears • Loan-to-value (For detailed information on LTV please refer to “LTV Report 2012, Q2”) • Legislation • Macro-economic factors • 2
Nordea Kredit – in brief I • Founded in 1993, number of employees (in FTEs) 133 (as per 2012 Q2) • 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, 1H: 539 m DKK and Cost/Income ratio 13.0% • Mortgage loans at nominal value 2012 Q2: 341.0 bn DKK • Mortgage loans at fair value 2012 Q2: 348.1 bn DKK • Market share 2012 Q2: 14.0% (2012 Q1: 13.9%) (Mortgage loans at nominal value as a share of all Danish mortgage bank loans) 3
Nordea Kredit – in brief II • Late payments by borrowers 2012 Q2: 0.32% (2012 Q1: 0.32%) Residential properties and holiday homes, 3½ months after due date • Average LTV 2012 Q2: 73% (2012 Q1: 72%) • Total capital ratio (2012 Q2) 16.7% and Tier 1 capital ratio 16.7% (excl. transition rules) • Completely match funded “Pass Through” setup with Balance Principle • Danish mortgage banks are regulated and supervised by Finanstilsynet (The Danish FSA) 4
Nordea Kredit – ratings and over-collateralisation Moody ´ s S&P CC 1 CC2 CC1 CC 2 Ratings of issued bonds Aaa Aaa AAA AAA 4.5 16.5 6.24 9.26 Required OC / CE for Aaa and AAA rating, % 10.2 17.6 n.a. n.a. Collateral Score, % 4 4 TPI leeway /Unused uplift 4 3 Current OC, % OC (over-collateralisation) and TPI leeway as measured by Moody´s CC1: 9.0 CE (credit enhancement) and unused uplift as measured by S&P All data are the latest available prior to the publication of the report CC2: 17.4 5
Nordea Kredit – market shares in per cent of total market 16 14 12 10 8 per cent 6 - 4 2 0 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 Other properties Private rental housing Commercial Agriculture Owner occupied dwellings and holiday homes All segments 6
Nordea Kredit – profit and increase in net lending 30 1200 Profit before tax << Increase in net lending DKK bn for 2012 1H was 539 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 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H 7
Nordea Kredit – mortgage loans at fair value CCs I&II, 2012 Q2: DKK 348.1 bn Nordea Kredit has two capital centres: • CC I: Mortgage Bonds (Realkreditobligationer, “RO”) are issued out of CC I (1993 - ). More than 97% of the bonds in CC I are CC I, RO: grandfathered covered bonds 66.6 bn, according to UCITS/CRD. 19.1 per cent • CC II: Covered Mortgage Bonds (Særligt dækkede realkreditobligationer,”SDRO”) are issued out of CC II (2007 - ). All bonds in CC II are covered bonds CC II, SDRO: according to UCITS/CRD. 281.5 bn, 80.9 per cent • All new issuance in 2012 exclusively in covered mortgage bonds (SDROs) out of CC II 8
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 prepayment risk and Nordea only negligible interest rate and foreign Kredit exchange risk. 9
All property categories CCs I & II 2012 Q2 at fair value: 348.1 bn DKK Distribution of loans by property category 44.1bn DKK 13% 7,1bn DKK 2% 37.1bn DKK 11% 239.5bn DKK 69% Owner occ. dwellings & 20.3bn DKK 6% holiday homes Private rental housing Commercial Agriculture Other properties 10
All property categories CCs I & II, 2012 Q2 at fair value: DKK 348.1 Distribution of loans by loan type 13,9bn DKK, 4% 21bn DKK, 6% 3,8bn DKK, 1% 71,5bn DKK, 20% 2,7bn DKK, 1% DKK 60.4 bn 17.6% 58,4bn DKK, 17% Fixed Fixed IO ARM ARM IO FRN capped FRN capped IO FRN FRN IO 114,9bn DKK, 33% 61,9bn DKK, 18% 11
Residential properties and holiday homes CCs I & II, 2012 Q2 at fair value: DKK 239.5 bn Distribution of loans by loan type 3,7bn DKK, 2% 2,4bn DKK, 1% 59,8bn DKK, 25% 85,3bn DKK, 36% DKK 60.4 bn 17.6% Fixed Fixed IO ARM ARM IO FRN capped FRN capped IO 51,5bn DKK, 21% 36,8bn DKK, 15% 12
Nordea Kredit – geographical distribution of loans, 2012 Q2 Fair value, all segments: 348.1 bn DKK - residential properties & holiday homes: 239.5 bn DKK 15.8 bn DKK 4.5%* 10.2 bn DKK 4.3%** North (0.58 m citizens – 10.4%) Denmark Region 128.4 bn DKK 36.9%* 97.0 bn DKK 40.5%** 81.9 bn DKK 23.5%* (1.71 m citizens – 30.6%) 52.2 bn DKK 21.8%** Central Capital Denmark (1.27 m citizens – 22.8%) Region of Region Denmark 53.5 bn DKK 15.4%* Region 30.4 bn DKK 12.7%** Zealand 68.5 bn DKK 19.7%* South (1.20 m citizens – 21.5%) Denmark 49.7 bn DKK 20.7%** Region (0.82 m citizens – 14.7%) * All segments ** Residential properties and holiday homes Total number of citizens 5.58 m, January 2012 – Source: Statistics Denmark 13
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 10 years 10 per cent Housing for youth/elderly 10 years 10 per cent Agricultural property 10 years 25 per cent Commercial property 10 years 25 per cent *) The guarantee period starts when a loan is disbursed or remortgaged **) As a percentage of the original principal – disregarding all amortisation The guarantee amount is not reduced during the guarantee period, but cannot exceed the outstanding debt. A new guarantee period starts when the loan is changed e.g. due to remortgaging. 14
Asset quality - late payments by borrowers, 2012 Q2 0,60 All mortgage Residential properties and holiday homes, arrears as a percentage banks 0.32% of the total amount due ‐ 3½ month after due date (last 0.34%) 0,50 All Danish MCIs * Nordea Kredit 0,40 per cent 0,30 0,20 Nordea Kredit 0.32% (last 0.32%) 0,10 0,00 2001Q1 2002Q1 2003Q1 2004Q1 2005Q1 2006Q1 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1 2012Q1 *) Including Nordea Kredit 15
Losses in per cent of mortgage loans at nominal value, 2012 Q2 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 0,30% Loss for the year in per cent of mortgage loans at nominal value (rhs) 250.000 0,25% 200.000 0,20% 150.000 0,15% 100.000 0,10% 50.000 0,05% 0 0,00% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1H 16
Nordea Kredit – LTV, loan-to-value 2012 Q2 (2012 Q1) LTV CC I & II LTV CC I LTV CC II 2012Q2 2012Q1 2012Q2 2012Q1 2012Q2 2012Q1 Owner occupied 80 79 75 74 82 81 dwellings Private rental housing 66 66 60 59 67 67 Commercial 61 61 44 44 62 63 Agriculture 50 50 45 45 51 51 Other properties 39 43 41 42 39 43 Total 73 70 73 72 69 73 For more detailed information on LTV – please refer to “LTV Report 2012 Q2” 17
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 found in Danish at the DFSA’s Danish website: http://www.finanstilsynet.dk/da/Regler-og-praksis/Lovsamling.aspx 18
Recommend
More recommend
