Nordea Bank Abp · OMXHEX:NDA_FI

Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (November 2011)

20 slides from Nordea Bank Abp's debt investor presentation, Nov 28, 2011

  1. Slide 1: Nordea Kredit, Investor Presentation, Q3 2011

    Nordea Kredit, Investor Presentation, Q3 2011 Published 28 November 2011

  2. Slide 2: Contacts 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

  3. Slide 3: Nordea Kredit – in brief I

    Nordea Kredit – in brief I • Founded in 1993, number of employees 150 (as per 2011, 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 1st half 2011: 529 m DKK, RoE 3.5% and Cost/Income ra

  4. Slide 4: Nordea Kredit – in brief II

    Nordea Kredit – in brief II • Late payments by borrowers 2011 Q3: 0.38% (2011 Q2: 0.42%) Residential properties and holiday homes, 3½ month after due date • Average LTV 2011 Q3: 68% (2011 Q2: 66%) • Total capital ratio 9.0% and Tier 1 capital ratio 9,0% (incl. transition rules) • Total capital ratio

  5. 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 Other properties 14 14 Private rental 12 12 housing per cent 10 10 Commercial - 8 8 Agriculture 6 6 Owner occupied 4 4 dwellings and holiday homes 2 2 All segments 0 0 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1

  6. 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 Profit before tax DKK m (rhs) >> 30 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 2010 2011, 1h Profit before tax for the 1st hal

  7. Slide 7: Nordea Kredit – mortgage loans at fair value

    Nordea Kredit – mortgage loans at fair value CCs I&II, 2011 Q3: DKK 333.4 bn CC I, RO: 87.5 bn, 26.3 per cent • Nordea Kredit has two capital centres: • CC I: Mortgage Bonds (Realkredit- obligationer, “RO”) are issued out of CC I (1993 - ). More than 97% of the bonds in CC I are grandfathered covere

  8. 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

  9. Slide 9: Nordea Kredit – distribution of loans by property category

    Nordea Kredit – distribution of loans by property category All property categories ‐ CCs I & II, 2011 Q3 at fair value: 333.4 bn DKK 9

  10. Slide 10: Nordea Kredit – distribution of loans by type

    Nordea Kredit – distribution of loans by type All property categories ‐ CCs I & II, 2011 Q3 at fair value: 333.4 bn DKK DKK 101.6 bn 30.5 % DKK 54.5 bn 16.4% DKK 1.8 bn 0.5% DKK 65.7 bn DKK 20.7 bn Fixed 19.7% Fixed IO 6.2 % ARM DKK 2.4 bn ARM IO 0.7 % FRN capped FRN capped IO FRN DKK 73.4 bn FRN IO

  11. Slide 11: Nordea Kredit – distribution of loans by type

    Nordea Kredit – distribution of loans by type Residential properties and holiday homes ‐ CCs I & II, 2011 Q3 at fair value: 230.5 bn DKK Fixed Fixed IO ARM DKK 31.7 bn ARM IO 13.7% DKK 74.8 bn FRN capped DKK 58.8 bn 32.5% FRN capped IO 25.5 % FRN FRN IO DKK 1.6 bn 0.7% DKK 61.3 bn 26.6 % DKK 2.3 bn

  12. Slide 12: Nordea Kredit – geographical distribution of loans Q3, 2011

    Nordea Kredit – geographical distribution of loans Q3, 2011 Fair value, all segments: 333.4 bn DKK, residential properties & holiday homes: 230.5 bn DKK • Total number of citizens 5.56 m January 2011 – Source: Statistics Denmark 14.7 bn DKK 4.4%* 9.7 bn DKK 4.2%** (0.58 m citizens – 10.4%) North Den

  13. Slide 13: 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

  14. Slide 14: Asset quality - late payments by borrowers

    Asset quality - late payments by borrowers - 3½ month after due date 0,60 Residential properties and holiday homes Arrears as a percentage of the total amount due 0,50 0.41% All Danish MCIs * Nordea Kredit (last 0.41%) 0,40 per cent 0.38% 0,30 (last 0.42%) 0,20 0,10 0,00 2001Q1 2001Q2 2001Q3 2001Q4

  15. Slide 15: Losses in per cent of mortgage loans at nominal value

    Losses in per cent of mortgage loans at nominal value Mortgage loans at nominal value 0,025% Mortgage loans nominal value, 300.000 Losses % of mortgage loans, 250.000 Loss for the year in per cent of mortgage 0,020% nominal value loans at nominal value (rhs) 200.000 0,015% mDKK 150.000 0,010% 100.00

  16. Slide 16: Nordea Kredit – LTV, loan-to-value 2011 Q3

    Nordea Kredit – LTV, loan-to-value 2011 Q3 (2011 Q2) LTV CC I & II LTV CC I LTV CC II 2011Q3 2011Q2 2011Q3 2011Q2 2011Q3 2011Q2 Owner occupied 74 71 69 65 77 74 dwellings Private rental housing 64 62 57 61 67 63 Commercial 61 55 44 46 63 59 Agriculture 49 49 44 44 50 50 Other properties 40 41 41 41

  17. Slide 17: Legislation

    Legislation • Danish mortgage financing is closely 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 ca

  18. Slide 18: The Danish economy - house prices and foreclosures

    The Danish economy - house prices and foreclosures 25.000 1.500 23.000 Foreclosures, seasonally adj. 21.000 1.250 DKK per sqm 19.000 ‐ all segments 1.000 17.000 15.000 750 13.000 500 11.000 Detached houses 250 9.000 Apartments 7.000 0 2003 Q2 2003 Q4 2004 Q2 2004 Q4 2005 Q2 2005 Q4 2006 Q2 2006 Q4 2

  19. Slide 19: Danish housing market: Hesitant buyers – but with high net wealth

    Danish housing market: Hesitant buyers – but with high net wealth • After a rebound house prices have started to decrease moderately again. • The housing market is affected by elevated uncertainties and a non-positive (currently flat) development in employment. • Sales are suffering and both dwellin

  20. 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 is not acting as your financial adviser or in any other fiduciary capacity and this

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