Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (November 2010)
18 slides from Nordea Bank Abp's debt investor presentation, Nov 25, 2010
Slide 1: Nordea Kredit Investor Presentation – 2010 Q3
Nordea Kredit Investor Presentation – 2010 Q3 Published 25 November 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 141 • 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 first‐half 2010: 435 m DKK, RoE 3.0% and Cost/Income ratio 19.7% • Mort
Slide 4: Nordea Kredit – in brief II
Nordea Kredit – in brief II • Late payments by borrowers 2010 Q3: 0.44% (2010 Q2: 0.44%) Residential properties and holiday homes, 3½ month after due date • Average LTV 2010 Q3: 67% (2010 Q2: 67%) • Total capital ratio 9.3% and Tier 1 capital ratio 9.7% (first‐half 2010) • Completely match funded “P
Slide 5: Nordea Kredit – market shares in per cent of total market
Nordea Kredit – market shares in per cent of total market 20 20 18 18 16 16 14 14 12 12 per cent 10 10 Other properties - 8 8 Private rental housing 6 6 Office & retail 4 4 Agriculture Residential 2 2 properties and holiday homes Industry & trade 0 0 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 5
Slide 6: Nordea Kredit – profit and increase in net lending
Nordea Kredit – profit and increase in net lending 35 1400 << Increase in net lending DKK bn 30 Profit before tax DKK m (rhs) >> 1200 25 1000 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 first‐ half 6 2010
Slide 7: Nordea Kredit – Capital Centres 1 & 2 (CC I & II)
Nordea Kredit – Capital Centres 1 & 2 (CC I & II) Mortgage loans at fair value 2010 Q3: DKK 316.3 bn • Nordea Kredit has two capital centres: – CC I: Mortgage Bonds (Realkreditobligationer, “RO”) are issued out of CC I (1993 ‐ ), however CC I, RO only 1 ISIN is presently open for issuance. More DKK
Slide 8: 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 9: Nordea Kredit – distribution of loans by type
Nordea Kredit – distribution of loans by type All segments ‐ CC I & II, 2010 Q3 at fair value: 316.3 bn DKK DKK 51.9 bn 16.4% DKK 93.3 bn 29.5% DKK 1.8 bn 0.6% Fixed DKK 63.3 bn 20.0% DKK 18.0 bn Fixed IO 5.7% ARM DKK 2.5 bn ARM IO DKK 74.6 bn 0.8% FRN capped 23.6% FRN capped IO DKK 10.9 bn FRN 3.4%
Slide 10: Nordea Kredit – distribution of loans by type (residential)
Nordea Kredit – distribution of loans by type Residential properties and holiday homes ‐ CC I & II, 2010 Q3 at fair value: 221.1 bn DKK Fixed DKK 29.6 bn Fixed IO 13.4% ARM ARM IO DKK 56.9 bn DKK 68.6 bn FRN capped 25.7% 31.0% FRN capped IO FRN FRN IO DKK 1.6 bn DKK 62.0 bn 0.7% 28.1% DKK 2.3 bn 1.1
Slide 11: Nordea Kredit – geographical distribution of loans
Nordea Kredit – geographical distribution of loans CC I & CC II 2010 Q3, all segments: mortgage loans at fair value 316.3 bn DKK Residential properties and holiday homes: mortgage loans at fair value 221.1 bn DKK 13.8 bn DKK 4.4%* 9.1 bn DKK 4.1%** North Denmark (0.58 m citizens – 10.5%) Region 114.
Slide 12: 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 13: Asset quality - late payments by borrowers
Asset quality ‐ late payments by borrowers ‐ 3½ month after due date 0,60 Residential properties and holiday homes 0.43% Arrears as a percentage of the total amount due (last 0.48%) 0,50 0,40 0.43% per cent 0,30 (last 0.44%) All Danish MCIs * Nordea Kredit 0,20 0,10 0,00 2001Q1 2001Q2 2001Q3 2001Q4
Slide 14: Losses in per cent of mortgage loans at nominal value
Losses in per cent of mortgage loans at nominal value 0,0250% Losses % of mortgage loans, nominal value 300.000 Mortgage loans at nominal value Mortgage loans nominal value, mDKK 250.000 Loss for the year in per cent of mortgage 0,0200% loans at nominal value (rhs) 200.000 0,0150% 150.000 0,0100% 10
Slide 15: Nordea Kredit – LTV, loan-to-value 2010 Q3 (2010 Q2)
Nordea Kredit – LTV, loan‐to‐value 2010 Q3 (2010 Q2) LTV CC I & II LTV CC I LTV CC II 2010Q3 2010Q2 2010Q3 2010Q2 2010Q3 2010Q2 Owner occupied dwellings 73 73 68 69 76 76 Rental 64 64 62 62 66 67 Industry and Trade 52 51 43 43 68 65 Office and Retail 58 57 49 49 61 61 Agriculture 48 47 44 43 49 49 O
Slide 16: 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 17: The Danish economy - house prices and foreclosures
The Danish economy ‐ 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, increases have been seen. 13.000 11.000 Detached houses For more inf
Slide 18: 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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