Dnb Obx · OSL:OBXD
Dnb Obx — DNB — Debt Investor Presentation (May 2017)
22 slides from Dnb Obx's debt investor presentation, May 2017
Slide 1: DNB Capital and AT1
DNB Capital and AT1 May 2017
Slide 2: DNB's Outstanding Additional Tier 1 Securities
DNB’s Outstanding Additional Tier 1 Securities USD denominated: Issue Date Type Amount Coupon First Call Date 26.03.2015 PerpNC5 USD 750 mn 5.75% 26.03.2020 18.10.2016 PerpNC5.5 USD 750 mn 6.50% 26.03.2022 NOK denominated: Issue Date Type Amount Coupon First Call Date 26.02.2015 PerpNC5 NOK 2,150 mn
Slide 3: DNB – Group Structure and Capital Ratios
DNB – Group Structure and Capital Ratios DNB has to meet all capital requirements on DNB ASA group level (“DNB”), DNB Bank Group level (“DNB Bank Group” ) and DNB Bank ASA solo level (“DNB Bank”) DNB ASA DNB Bank ASA DNB Life and Asset Management Aa2 / A+ / AA (low) (Senior/ short term issuance) DNB
Slide 4: DNB Delivers Solid Profit
DNB Delivers Solid Profit Pre-tax operating profit before impairment NOK billion 35 34.1 30.8 30 28.7 25 20 18.7 15 10 7.7 7.4 6.5 5 1.6 2.3 0.6 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q17 Pre-tax operating profit before impairment Impairment of loans 4
Slide 5: DNB CET1 Capital Generation
DNB CET1 Capital Generation CET1 build up and dividend CET1 capital ratio – transitional rules Equity development Basis points (bps) – transitional rules Per cent NOK bn 16.0 15.8 206 211 14.4 190 12.7 65 89 11.8 159 10.7 142 9.2 9.4 127 175 8.5 118 32 160 138 40 55 101 92 2012 2013 2014 2015 2016 2
Slide 6: SREP – CET1 Capital Requirements
SREP – CET1 Capital Requirements SREP includes Pillar 2 requirements Pillar 2 requirements in Norway are not included in the MDA trigger level 16.0% SREP 14.7% ~ 16 % 15.8 % 15.7 % 14.4 % SREP 15.05 % 1.50% 1.50% 1.50% 12.7 % 11.8 % 1.50% 1.20 % 1) 1.20 % 1) 1,55 % 1) 1.0 % 2.0 % 2.0 % 2.0 % 1.0 % 3
Slide 7: Leverage Ratio – DNB versus Nordic Peers
Leverage Ratio – DNB versus Nordic Peers Leverage ratio Per cent, 31 March 2017 6.7 6.0 DNB’s leverage ratio requirement 1) 4.7 4.7 4.7 4.4 DNB Swedbank SEB Nordea SHB 1) The Norwegian leverage ratio requirement for banks is 5 per cent effective as of 30 June 2017. For systemically important banks,
Slide 8: MDA – DNB Well Above CET1 MDA Trigger Level
MDA – DNB Well Above CET 1 MDA Trigger Level Pillar 2 requirements in Norway are not included in the MDA trigger level 2) 16.0 % 15.8 % 2) ~16 % target YE 2017 14.4 % 15.7 % 13.55 % 1) 13.20% 13.20 % 1) 12.0 % 10.0 % YE 2014 YE 2015 YE 2016 Q1 2017 YE 2017 MDA Trigger Level DNB CET 1 DNB Bank Group
Slide 9: DNB Bank Group Needs Significant Net Loss to Reach MDA Trigger
The DNB Bank Group will need to record a significant net loss in order to reach the MDA trigger level Average profit before loan losses 2014 – 2016: NOK 31.2 bn + Buffer to MDA: (15.7% - 13.2%): NOK 26.1 bn = “Loan loss capacity” 12 month horizon NOK 57.3 bn Note: “Loan loss capacity” in per cent of
Slide 10: DNB's Solid Profitability Should Ensure AT1 Coupon Payments
DNB’s Solid Profitability Should Ensure AT1 Coupon Payments 40 Profit Before Tax AT1 Coupon Payments Dividend 35 31.9 30 25 23.4 20 15 9.3 10 7.3 5 2.9 0.1 0.5 1.0 1.0 1) 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 DNB will give due consideration to Dividend payments on ordinary shares and c
Slide 11: Overall Capital Requirements under SREP
Overall Capital Requirements under SREP • Pillar 1 capital requirements in Norway consist of minimum requirements and combined buffer requirements • As a result of the SREP, the supervisors may decide on additional capital add-on (pillar 2), which together with the pillar 1 requirements form the Ove
Slide 12: Pillar 2 not Included in the MDA Trigger Level in Norway
Pillar 2 not Included in the MDA Trigger Level in Norway MDA restrictions will only apply if there is a breach of the Pillar 1 requirements (Minimum capital requirements + Combined buffer requirements) Pillar 2 requirements in Norway do not influence the MDA trigger level • Stated in a letter from
Slide 13: ADI – Available Distributable Items
ADI – Available Distributable Items • Items available for distribution is defined in the Norwegian Public Limited Company Act:* Following this definition, the ADI level is calculated as follows: ADI = total equity – share capital – fund for unrealized gains DNB Bank ASA (31 December 2016): ADI = NOK
Slide 14: Implemented and Proposed Changes in Capital Requirements
Implemented and Proposed Changes in Capital Requirements Changes in countercyclical buffer due to reciprocity – approved 28th Sep 2016 • In accordance with CRD IV, the institution-specific countercyclical buffer rate (CCyB rate) will be a weighted average of the rates in the jurisdictions in which t
Slide 15: Leverage Ratio Requirement
Leverage Ratio Requirement • Norwegian leverage ratio requirement effective as from 30 June 2017: • Minimum leverage ratio 3 % 1) • Bank requirement 2% • SIFI requirement 1% Total SIFI/DNB requirement 6% • As at 31 March 2017, DNB Group reported a leverage ratio of 6.7 % Well above future requir
Slide 16: Potential Impact of Basel IV
Potential Impact of “Basel IV” Estimated Change in CET 1 in a shift to 35 % Risk Density* DNB vs. Nordic banks DNB vs. European banks 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% SHB Swedbank SEB Nordea DNB DNB KBC Nordea DBK BBVA Barclays ING CABK RBS SAN SEB BNPP SHB ISP StanChart HSBC UCG
Slide 17: EBA Stress Test: CET1 Impact of Adverse Scenario
DNB (0.0)% PKO (1.8)% Swedbank (1.9)% CET1 CM-CIC (2.0)% Jyske (2.1)% Danske (2.1)% SEB (2.2)% Nordea (2.4)% VWFS (2.4)% BNPP (2.5)% 2015 14.3 % SHB (2.7)% Source: EBA Stress Test Results 2016 Criteria (2.7)% Transitional CET1 Intesa (2.7)% Lloyds (2.9)% Crédit Ag. (3.0)% HSBC (3.1)% Baseline 16.6 %
Slide 18: DNB: A Solid Outperformer in the EBA Stress Test (2/3)
DNB: A Solid Outperformer in the EBA Stress Test (2/3) Impact of the 2018 Adverse Scenario from FY15 Starting Point Average Decline in CET1 Ratio at Swedish Banks = 230bps Decline in CET1 (270) Ratio (225) (236) (bps) (187) (1) DNB Swedbank SEB Nordea SHB Simple Average Increase at Swedish Banks = 1
Slide 19: DNB: A Solid Outperformer in the EBA Stress Test (3/3)
DNB: A Solid Outperformer in the EBA Stress Test (3/3) FY 2015 to FY 2018E Adverse: CET1 and RWA Impact on Transitional CET1 Ratio Changes in CET1 (bps) Changes in RWAs (bps) Total Impact (bps) (1) 0 (1) Swedbank 31 (218) (187) Danske (157) (53) (210) SEB 125 (349) (225) Nordea (64) (171) (236) Hand
Slide 20: Funding Contacts
Funding Contacts Long Term Funding: • Thor Tellefsen Senior Vice President, Head of Long Term Funding Phone direct: + 47 24 16 91 22 Mobile: + 47 915 44 385 E-mail: [email protected] • Håkon Røsand Senior Vice President, Long Term Funding Phone direct: + 47 24 16 91 27 Mobile: + 47 906 16 892 E-
Slide 21: Disclaimer (1/2)
Disclaimer (1/2) NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES OR ITS TERRITORIES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS OR OTHERWISE THAN TO PERSONS TO WHOM IT CAN LAWFULLY BE DISTRIBUTED. THIS DOCUMENT MAY NOT BE REPRODUCED IN ANY FORM OR FURTHER DISTRIBUTED TO ANY OTHER PERSON
Slide 22: Disclaimer (2/2)
Disclaimer (2/2) Furthermore, you should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem it necessary, and make your own investment, hedging and trading decisions (including decisions regarding the suitability of an in