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Societe Generale S.a. Class A — Societe Generale SFH — Debt Investor Presentation (February 2012)
29 slides from Societe Generale S.a. Class A's debt investor presentation, February 2012
Slide 1: Societe Generale SFH Home Loan Covered Bond Programme
SOCIETE GENERALE SFH HOME LOAN COVERED BOND PROGRAMME INVESTOR PRESENTATION February 2012
Slide 2: Disclaimer
DISCLAIMER This document may contain a number of forecasts and comments relating to the targets and strategies of the Societe Generale Group. These forecasts are based on a series of assumptions, both general and specific, notably - unless specified otherwise - the application of accounting principl
Slide 3: Contents
CONTENTS CHAPTER 01_EXECUTIVE SUMMARY CHAPTER 02_SG SFH COVERED BOND PROGRAMME CHAPTER 03_FRENCH HOME LOAN BUSINESS CHAPTER 04_CREDIT LOGEMENT | P.3
Slide 4: Executive Summary
EXECUTIVE SUMMARY • SG Group: a major player in the French retail banking market SG Retail Network has 8.5 millions of clients EUR 52.3bn home loans outstanding to individuals, i.e. about 7% of the French home loan market • SG SFH: the covered bond issuer for SG Group AAA (Fitch) / Aaa (Moody’s) rat
Slide 5: Contents
CONTENTS CHAPTER 01_EXECUTIVE SUMMARY CHAPTER 02_SG SFH COVERED BOND PROGRAMME CHAPTER 03_FRENCH HOME LOAN BUSINESS CHAPTER 04_CREDIT LOGEMENT | P.5
Slide 6: SFH - Sociétés de Financement de l'Habitat
SFH - “SOCIETES DE FINANCEMENT DE L’HABITAT” • Specific law voted by French Parliament in October 2010 reinforcing the legal framework of “Sociétés de Crédit Foncier” and establishing Sociétés de Financement de l’Habitat (Home Legal Financing Companies). Framework • Issuer is a specialized credit in
Slide 7: Obligations de Financement de l'Habitat: Highest level of investor protection
Obligations de Financement de l’Habitat : Highest level of investor protection • Statutory “Privilège”. Principal and interests of the covered bonds benefit from the so called “Privilège” (priority right of payment). • Assets Eligibility Criteria. Only assets that satisfy certain legal eligibility c
Slide 8: SG SFH: Structure Overview
SG SFH: STRUCTURE OVERVIEW • Assets are comprised of AAA/Aaa rated Floating Rate Notes issued by an existing French securitisation vehicle (FCT). Notes are backed by a direct security over the Cover Pool (L.211-38 from French Code Monétaire et Financier “remise en pleine propriété à titre Société Gé
Slide 9: SG SFH: Monitoring and Supervision
SG SFH: MONITORING AND SUPERVISION Specific Controller required by law to ensure permanent and proper supervision over the assets refinanced through OFH issuance (Art. L515-30 of the Code Monétaire et Financier) Specific Controller certifies the quarterly issuance provisional program (Art. R515-13 I
Slide 10: FCT Red & Black Home Loans Guaranteed (1/2)
FCT RED & BLACK HOME LOANS GUARANTEED (1/2) LOAN TYPE 100% prime French residential loans guaranteed by CREDIT LOGEMENT (AA-/Aa2) POOL SIZE EUR 23.97bn NUMBER OF LOANS 328,287 (average EUR 73,003 balance remaining per loan) CURRENT WA LTV 57.22% WA SEASONING 51 months INTEREST RATE TYPE 90.73% fixed
Slide 11: FCT Red & Black Home Loans Guaranteed (2/2)
FCT RED & BLACK HOME LOANS GUARANTEED (2/2) • Main eligibility criteria Loans granted in Euros Loans governed by French law The financed property is a residential property, located in France Loans are secured by a guarantee granted by Crédit Logement At the date on which the loan is selected to ente
Slide 12: SG SFH Asset-Liability Management
SG SFH Asset-Liability Management • The structure has been set up taking into account best ALM practice, i.e. there is no mismatch between Cover Pool and oustanding Covered Bonds Société Générale SFH Asset-Liability Management Société Générale Outstanding OFH based on Home Loans Portfolio Assets Tot
Slide 13: SG SFH Issuance Programme
SG SFH ISSUANCE PROGRAMME • SG SFH already launched several issuances, all settled in June 2011 : • Inaugural public issuance (Serie 1) for 1.5 GEUR – Fixed rate 3.25% • 10 complementary issuances subscribed by SG (Series 2 to 11) for a total nominal amount of 17.75 GEUR – Variable rate Euribor 3M •
Slide 14: Contents
CONTENTS CHAPTER 01_EXECUTIVE SUMMARY CHAPTER 02_SG SFH COVERED BOND PROGRAMME CHAPTER 03_FRENCH HOME LOAN BUSINESS CHAPTER 04_CREDIT LOGEMENT | P.14
Slide 15: Overview of the French Home Loan Market (1/3)
OVERVIEW OF THE FRENCH HOME LOAN MARKET (1/3) FRENCH HOME LOAN MARKET CONTEXT French home loan market • 57% ownership rate (second lowest in EU) Quarterly French Home Loans origination (in EUR Bn) French Home Price Index (in base 100 in 2010) • 30.5% of French households bearing 50 120,0 45 resident
Slide 16: Overview of the French Home Loan Market (2/3)
OVERVIEW OF THE FRENCH HOME LOAN MARKET (2/3) TypeType of security ofof of security French French Home Loans home loans FRENCH HOME LOANS MAIN CHARACTERISTICS: 60% 50% • Guaranteed rather than mortgage loans • Fixed rate loans 40% • Amounts lent are based on the borrower’s 30% capacity to repay rath
Slide 17: Overview of the French Home Loan Market (3/3)
OVERVIEW OF THE FRENCH HOME LOAN MARKET (3/3) FRENCH MARKET BASED ON: • The French home loan market is a prime loan market Mainly on existing properties (+/- 60 %) • Default rates remain at low level At national level At Société Générale level Especially when guaranteed by Crédit Logement French mar
Slide 18: SG French Home Loan Business Characteristics
SG FRENCH HOME LOAN BUSINESS CHARACTERISTICS SOCIETE GENERALE FRENCH HOME LOAN BUSINESS Société Générale French Home Loan Business Performing outstanding breakdown as of end of 2010 • Focused on Crédit Logement guarantee Type of loan purpose Second home Owner occupied home 4% • Most of the time borr
Slide 19: Contents
CONTENTS CHAPTER 01_EXECUTIVE SUMMARY CHAPTER 02_SG SFH COVERED BOND PROGRAMME CHAPTER 03_FRENCH HOME LOAN BUSINESS CHAPTER 04_CREDIT LOGEMENT | P.19
Slide 20: Credit Logement Performance on its Market
CREDIT LOGEMENT PERFORMANCE ON ITS MARKET • “Guarantee” market share in home loan market: in 2009 (*), guaranteed loans represented 53.2% of the overall residential loans granted in France, vs 40.8% with respect to the mortgage loans (usual mortgage) (**) • Home loan guarantee market: in 2010, Crédi
Slide 21: Credit Logement Business Model
CREDIT LOGEMENT BUSINESS MODEL • Crédit Logement provides guarantees of home loans in case of non repayment by borrowers, as an alternative to the traditional registration of a mortgage Each home loan granted by SG and guaranteed by Crédit Logement has to satisfy both Crédit Logement and SG credit p
Slide 22: Credit Logement Processes - Granting process
CREDIT LOGEMENT PROCESSES – Granting process • When receiving a guarantee request, in 97% cases (2010 data) through electronic transmission or its extranet, the process works as follows: Internal review of its own register to assess Crédit Logement exposure on this borrower, Automated analysis by th
Slide 23: Credit Logement Processes - Recovery process
CREDIT LOGEMENT PROCESSES – Recovery process • When called on a guarantee, after three unpaid instalments, the process is the following: The recovery analyst, after receiving the whole file from the bank, contacts the borrower and try, within a limited period of time, to get full repayment of unpaid
Slide 24: Credit Logement Strengths
CREDIT LOGEMENT STRENGTHS Crédit Agricole 3,0% LCL • Crédit Logement is strongly backed by high quality 6,0% 16,5% BNP Paribas shareholders: 9,5% SG Group Long term rated between A+ and AA BPCE Group Crédit Mutuel - CIC Commitment of partners and shareholders to rebuild the MGF if La Banque Postale
Slide 25: Mutual Guarantee Fund (MGF)
MUTUAL GUARANTEE FUND (MGF) • The guarantee provided by Credit Logement is based on the contribution of each borrower to the Mutual Guarantee Fund (MGF) • The MGF is a dedicated guarantee on residential mortgage loans: Every borrower benefiting from a Credit Logement guarantee participates by his in
Slide 26: Mutual Guarantee Fund (MGF)
MUTUAL GUARANTEE FUND (MGF) • SG Crédit Logement home loans represents 62% of total SG French home loans production • SG SFH home loans guaranteed by Crédit Logement represents 59% of the total SG Crédit Logement home loans • Default definition from 3 unpaid instalments Cumulated default rate by vin
Slide 27: Mutual Guarantee Fund (MGF)
MUTUAL GUARANTEE FUND (MGF) Source : Crédit Logement Executive summary SG SFH Covered French Home Loan Credit Logement Appendix | P.27 Bond Programme Business
Slide 28: Contacts
CONTACTS Stéphane LANDON Vincent ROBILLARD Didier HARNOIS Group Treasurer Head of Group Funding Head of Group Collateral Management SG SFH Chairman CEO SG SFH Deputy CEO +33 1 42 13 33 08 +33 1 57 29 53 35 +33 1 42 14 29 22 [email protected] [email protected] didier.harnois@socge
Slide 29: 16 March 2011
BUILDING TOGETHER TEAM SOCIETE PIRIT GENERALE
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