Nordea Kredit Investor Presentation 2015 Q4

Transcription

1 Nordea Kredit Investor Presentation 2015 Q4 Published 22 February, 2016 Nordea Kredit

2 Introduction and contact information 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 covered mortgage bonds and mortgage bonds. If you have any questions, please feel free to contact: Finn Nicolaisen, First Vice President, Nordea - TALM Exposures, phone Juho-Pekka Jääskeläinen, Senior Treasury Manager, Nordea - TALM Exposures, phone Contents: Nordea Kredit in brief Ratings and OC Loan portfolio LTV 2

3 Nordea Kredit in brief I Founded in 1993, number of employees (in FTEs) 101 (as per 2015 Q4) New issues are covered mortgage bonds (SDROs), exclusively All bonds issued by Nordea Kredit are rated AAA (by S&P) and Aaa (by Moody s) Profit before tax 2015, DKK 1,913m and Cost/Income ratio 10.6% Mortgage loans at nominal value 2015 Q4: DKK 383.8bn (2015 Q3: DKK 381.3bn) Mortgage loans at fair value 2015 Q4: DKK 385.9bn (2015 Q3: DKK 383.0bn) Market share 2015 Q4: 15.0% (2015 Q3: 15.0%) (Mortgage loans at nominal value as a share of all Danish mortgage bank loans) 3

4 Nordea Kredit in brief II Weighted average LTV 2015 Q4: 63% (2015 Q3: 63%) Total capital ratio at end of 2015: 29.7% and Tier 1 capital ratio 29.7% (excl. transitional rules) Match-funded Pass Through setup complying with the Danish specific balance principle Late payments by borrowers 2015 Q3: 0.17% (2015 Q2: 0.18%) (Residential properties and holiday homes, 3½ months after the September 30, 2015 payment date) Danish mortgage banks are regulated and supervised by Finanstilsynet (The Danish FSA) All covered bonds issued by Nordea Kredit are ECBC-labeled see - Investor information 4

5 Nordea Kredit ratings and over-collateralisation Moody s S&P CC 1 CC2 CC1 CC 2 Ratings of issued bonds Aaa Aaa AAA AAA Required OC / CE for Aaa and AAA rating, % TPI leeway/unused uplift OC and CE requirements as set by Moody s and S&P, respectively TPI leeway and unused uplift as defined by Moody s and S&P, respectively OC data in the lower right hand box as computed by Nordea Kredit OC per Q4 2015, % CC1: 7.8 CC2: 9.8 5

6 per cent Nordea Kredit`s market shares - outstanding loans in per cent of all Danish mortgage credit loans Q42013 Q12013 Q22013 Q32013 Q42014 Q12014 Q22014 Q32014 Q42015 Q12015 Q22015 Q32015 Q4 Other properties Commercial Owner occupied dwellings and holiday homes Private rental housing Agriculture All segments 6

7 Net new lending DKK bn Nordea Kredit profit and net new lending 30 << Net new lending DKK bn (lhs) Profit before tax DKK m (rhs) >> Profit before tax DKK m

8 Nordea Kredit capital centers CCs I&II, 2015 Q4: DKK 385.9bn (mortgage loans at fair value) CC I, RO: DKK 17.1bn, 4.4 % Nordea Kredit has two capital centers: CC I: Mortgage Bonds (Realkreditobligationer, RO ) No open series. About 66% of the bonds in CC I are grandfathered covered bonds according to UCITS/CRD. CC II: Covered Mortgage Bonds (Særligt dækkede realkreditobligationer, SDRO ) are issued out of CC II ( ). CC II, SDRO: DKK 368.8bn, 95.6 % All bonds in CC II are covered bonds according to UCITS/CRD. 8

9 Match-funded setup due to the specific Balance Principle Borrower Interest payment Principal payment Interest payment Principal payment Investor Contribution fee Nordea Kredit Nordea Kredit complies with the specific Balance Principle and has a match-funded Pass Through setup. Nordea Kredit has no prepayment risk and only negligible interest rate and foreign exchange risk. 9

10 Nordea Kredit loan portfolio split by property categories Capital centres I & II, 2015, Q4 at fair value: DKK 385.9bn Distribution of all loans by property category DKK 48.1bn, 12.5% DKK 10.6bn, 2.7% DKK 41.3bn, 10.7% DKK 257.4bn, 66.7% DKK 28.5bn, 7.4% Owner occ. dwellings & holiday homes Private rental housing Commercial Agriculture Other properties 10

11 Nordea Kredit loan portfolio - loan type split Capital centres I & II, 2015, Q4 at fair value: DKK 385.9bn Distribution of all loans by loan type DKK 3.1bn, 0.8% DKK 35.4bn, 9.2% DKK 51.0bn, 13.2% DKK 98.1bn, 25.4% DKK 2.5bn, 0.7% DKK 60.4 bn 17.6% DKK 54.7bn, 14.2% Fixed Fixed IO ARM ARM IO FRN capped FRN capped IO FRN DKK 88.1bn, 22.8% DKK 53.0bn, 13.7% FRN IO 11

12 Nordea Kredit loan portfolio - loan type split (Developments from 2014, Q4-2015, Q4 nominal value) 100% 90% 45.3bn 12.2% 47.6bn 12.7% 47.0bn 12.4% 48.8bn 12.8% 54.1bn 14.1% 80% 28.4bn 7.6% 30.6bn 8.2% 31.7bn 8.4% 34.6bn 9.1% 37.8bn 9.9% 70% 60% 50% 40% 52.7bn 14.2% 62.1% 27.2bn 7.3% 31.6bn 8.4% 48.2bn 13.0% 28.9bn 7.8% 56.6bn 15.1% 40.1bn 10.7% 24.2bn 6.4% 61.5% 59.1bn 15.6% 33.6bn 8.8% 36.7bn 9.7% 22.0bn 5.8% 60.7% 59.5bn 15.6% 59.8bn 59.9% 15.6% 33.8bn 8.8% 35.1bn 9.1% 32.5bn 8.5% 19.4bn 5.1% 26.1bn 6.8% 16.5bn 4.3% 59.8% 30% 53.2bn 14.3% 53.3bn 14.2% 54.3bn 14.3% 55.0bn 14.4% 55.1bn 14.3% 20% 10% 88.2bn 23.7% 37.9% 91.6bn 24.4% 38.5% 95.4bn.25.1% 39.3% 98.bn 25.7% 40.1% 99.5bn 25.9% 40.2% 0% Q Q Q Q Q Fixed rate - amort Fixed rate - IO ARMs 1-2 years - amort ARMs 1-2 years - IO ARMs 3-10 years - amort ARMs 3-10 years - IO Cita, Cibor, cap - amort Cita, Cibor, cap - IO 12

13 Nordea Kredit loan type split for owner occupied dwellings Owner occupied dwellings and holiday homes, capital centres I & II, 2015, Q4 at fair value: DKK 257.4bn Distribution of loans by loan type DKK 7.2bn, 2.8% DKK 2.3bn, 0.9% DKK 69.5bn, 27.0% DKK 2.9bn, 1.1% DKK 60.4 bn 17.6% DKK 13.0bn, 5.1% DKK 80.6bn, 31.3% Fixed Fixed IO ARM ARM IO FRN capped FRN capped IO FRN DKK 35.5bn, 13.8% DKK 46.5bn, 18.0% FRN IO 13

14 Nordea Kredit - loans by Danish regions and property categories Capital centres I & II, 2015, Q4 at fair value: All property categories: DKK 385.9bn Owner occupied dwellings & holiday homes: DKK 257.4bn Geographical distribution by Danish regions DKK 17.1bn, 4.4%* DKK 10.4bn, 4.0%** (0.58m citizens 10.3%) North Denmark Region DKK 89.2bn, 23.1%* DKK 56.1bn, 21.8%** (1.28m citizens 22.7%) Central Denmark Region Capital Region of Denmark DKK 145.1bn, 37.7%* DKK 105.7bn, 41.1%** (1.77m citizens 31.2%) DKK 61.3bn, 15.9%* DKK 35.0bn, 13.6%** South Denmark Region Region Zealand (1.21m citizens 21.3%) DKK 73.1bn, 18.9%* DKK 50.2bn, 19.5 %** (0.82m citizens 14.5%) * All segments ** Owner occupied dwellings and holiday homes Total number of citizens 5.7m, April 1, 2015 Source: Statistics Denmark 14

15 per cent Asset quality - late payments by borrowers, 2015 Q3 0,70 Owner occupied dwellings and holiday homes, arrears as a percentage of the Q3, 2015 scheduled payments - 3½ months after due date 0,60 0,50 0,40 All mortgage banks 0.21% (last 0.24%) 0,30 0,20 All mortgage banks* Nordea Kredit 0,10 Nordea Kredit 0.17% (last 0.18%) 0, Q2 2014Q4 2014Q2 2013Q4 2013Q2 2012Q4 2012Q2 2011Q4 2011Q2 2010Q4 2010Q2 2009Q4 2009Q2 2008Q4 2008Q2 2007Q4 2007Q2 2006Q4 2006Q2 2005Q4 *) Including Nordea Kredit 15

16 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 Lifetime of loan 25 per cent Holiday homes Lifetime of loan 25 per cent Subsidized property Lifetime of loan 10 per cent Housing for youth/elderly Lifetime of loan 10 per cent Agricultural property Lifetime of loan 25 per cent Commercial property Lifetime of loan 25 per cent *) The guarantee period starts when a loan is disbursed or remortgaged. The former guarantee period of 5 or 10 years, respectively was changed to the lifetime of the loans on December 9, **) 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. -By the end of Q loss guarantees from Nordea Bank comprised loans totalling DKK 357.6bn. The actual loss guarantees amounted to DKK 100.0bn. 16

17 Mortgage loans nominal value, DKKm Net losses in per cent of mortgage loans at nominal value Mortgage loans at nominal value Net loss for the year in per cent of mortgage loans at nominal value (rhs) 1,00% 0,80% 0,60% 0,40% 0,20% Losses % of mortgage loans, nominal value 0 0,00%

18 Nordea Kredit LTV, loan-to-value 2015 Q4 (2015 Q3) LTV CC I & II LTV CC I LTV CC II 2015Q4 2015Q3 2015Q4 2015Q3 2015Q4 2015Q3 Owner occupied dwellings Private rental housing Commercial Agriculture Other properties Total The figures are weighted averages for the respective property categories - Please also see the information about Nordea Kredit in the ECBC covered bonds labelling 18

19 Legislation Danish mortgage financing is regulated and supervised by the DFSA (Finanstilsynet): Some legislation can be found in English at the DFSA s English website: All relevant legislation can be found in Danish at the DFSA s Danish website: 19

20 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 Bank AB (publ) including its subsidiaries ( Nordea ) is not acting as your financial adviser or in any other fiduciary capacity and this presentation should not be treated as if Nordea is giving investment advice. This presentation and any information contained in this presentation or supplied in connection therewith, whether in writing or not, do not constitute or form a part of, and should not be construed as, an offer, recommendation, advertisement of an offer or invitation to subscribe for or purchase any securities of any Nordea Group company anywhere in the world or a solicitation of any such offer, and shall neither form the basis of, or be relied on in connection with, any offer or commitment whatsoever. Information contained in this presentation is derived from publicly available sources which Nordea believes are reliable, and includes market information based on data provided by third party sources identified herein and estimates, assessments, adjustments and judgments that are based on Nordea's experience and familiarity with the sectors in which it operates. Even though Nordea believes the third party sources to be reliable no independent verification has been made, consequently the correctness and completeness in the information can not be guaranteed. There is no assurance that such estimates, assessments and judgments are the most appropriate for making determinations relating to market information or that market information prepared by other sources will not differ materially from the market information included herein. This presentation contains forward-looking statements that reflect management's current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. Important factors that may cause such a difference for Nordea include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in interest rate and foreign exchange rate levels and (iv) change in the regulatory environment and other governmental actions. This presentation does not imply that Nordea has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. Neither Nordea nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this presentation. Neither Nordea nor any its directors, officers, employees or advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this presentation. This presentation (i) does not and will not constitute or include an invitation to tender for purchase or sale, an advertisement or an offer of any securities in circumstances which could qualify as a public offer (oferta pública) or as a private offer (oferta particular) pursuant to the Portuguese Securities Code (Código dos Valores Mobiliários) enacted by Decree Law no. 486/99, of 13 November, and published by Decree Law no. 357-A/2007 of 31 October, as amended from time to time and (ii) complies with all applicable laws and regulations of the Republic of Portugal. You may not distribute this presentation, in whole or part, without our prior express written permission. This presentation is not for release, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan or the United States of America.. 20