Investor Presentation
KLP Banken Group
Q1 2017 financial highlights and cover pool
Content
•
Financial highlights
•
Cover Pool Report – KLP Boligkreditt AS
•
Cover Pool Report – KLP Kommunekreditt AS
Overview
Profitability
Balance sheet
Q1 2017
23
Q1 2016
20
Total income
68
66
Public sector loans
17,0
15,4
Operating expenses
49
53
Customer deposits
8,9
7,9
5,0 %
6,2 %
19,3 %
17,5 %
NOK MILLIONS, YTD
Profit before tax
ROE, annualised b.t.
NOK MILLIONS
Mortgage loans
Capital adequacy (CET 1)
31.03.2017 31.03.2016
13,4
11,3
Profit development
Group profit before tax
NOK millions, YTD this year vs. YTD last year
0
0
-
1
-3
4
23
20
Profit YTD 2016
Net interest
income
Management Net commission
fee
and fees
Gain/loss
financial
asset/debt
Operating
expenses
Write-up/downs Profit YTD 2017
Profit development
Group PBT
Retail market PBT
Public sector PBT
NOK millions
NOK millions
NOK millions
37
33
16
23
20
22
14
18
19
17
6
2
-1
Q1
2016
Q2
2016
Q3
2016
Q4
2016
0
-1
Q1
2017
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Total income
Operating expenses
Financial gains/losses
NOK millions, Group
NOK millions, Group
NOK millions, Group
68
66
66
55
53
66
37
37
Q2
2016
Q3
2016
49
6
8
4
3
62
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q1
2016
Q4
2016
Q1
2017
Q1
2016
Q2
2016
Q3
2016
-8
Q4
2016
Q1
2017
Profit development
Delinquent loans, mortgage and public sector
Loss provisions
31.03.2017
0,09 %
NOK MILLIONS
Delinquencies in % of Group total lending
2015
1
-
NOK MILLIONS
Mortgage loans
Public sector loans
Retail loan delinquencies
>90 days, % of company total lending balance
All mortgage loans in KLP Banken Group
KLP Banken AS
KLP Boligkreditt AS
0,46 %
0,42 %
0,35 %
0,27 %
0,32 %
0,30 %
0,29 %
0,28 %
0,19 %
0,18 %
0,23 %
0,21 %
0,00 %
0,00 %
0,00 %
0,00 %
0,00 %
0,00 %
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017
2016
1
-
2017
-0
-
Business volumes
PUBLIC SECTOR
LOANS
MORTGAGE
LOANS
8,8
NOK BILLIONS
KLP Banken AS
KLP Boligkreditt AS
KLP Kommunekreditt AS
Total
CUSTOMER
DEPOSITS*
8,9
4,6
17,0
17,0
13,4
8,9
Mortgage loans
Public sector loans
Deposits
NOK billions
NOK billions
NOK billions
12,8
12,7
Q3
2016
Q4
2016
12,3
13,4
15,4
15,7
Q1
2017
Q1
2016
Q2
2016
17,0
17,0
17,0
Q3
2016
Q4
2016
Q1
2017
7,9
8,2
8,4
8,7
8,9
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
11,3
Q1
2016
Q2
2016
Liquidity placements
Composition of liquidity placements
Quarter end
NOK bn:
1,8
1,6
0,2
3,6
100 %
90 %
80 %
70 %
60 %
National government/ central bank bonds (AAA)
Local government bonds (Not rated)
50 %
Bank deposits Norwegian banks (A/AA-)
40 %
Covered bonds (AAA)
30 %
20 %
10 %
0%
KLP Banken AS
KLP
Kommunekreditt
AS
KLP Boligkreditt
AS
KLP Banken
Group
Issued bond debt
Maturity profile of issued bond debt
NOK billions
0,9
0,7
-
0,6
4,3
4,5
-
-
1,1
2,0
4,6
3,3
0,3
0,6
2017
2018
KLP Kommunekreditt AS (covered bonds)
2019
2020
KLP Boligkreditt AS (covered bonds)
2021
2022
KLP Banken AS (unsecured)
Core capital adequacy
KLP Banken Group
KLP Banken AS
CET1
CET1
16,5 %
16,8 %
Q2 2016
Q3 2016
18,3 %
Q4 2016
19,3 %
16,0 %
15,9 %
Q1 2017
Q2 2016
Q3 2016
17,9 %
18,4 %
Q4 2016
Q1 2017
KLP Boligkreditt AS
KLP Kommunekreditt AS
CET1
CET1
17,2 %
Q2 2016
16,7 %
Q3 2016
15,6 %
16,2 %
Q4 2016
Q1 2017
17,8 %
18,3 %
18,0 %
Q2 2016
Q3 2016
Q4 2016
19,4 %
Q1 2017
P&Ls
KLP Banken Group
NOK MILLIONS, YTD
Net interest income
Management fee
Net commission and fees
Gain/loss financial asset/debt
Operating expenses
Write-up/downs
Earnings before tax
KLP Banken AS
Q1 2017
51
14
3
4
-49
0
23
Q1 2016
51
14
1
6
-53
20
2016
194
57
9
11
-179
-1
91
Q1 2017
23
14
3
1
-36
0
5
NOK MILLIONS, YTD
Net interest income
Management fee
Net commission and fees
Gain/loss financial asset/debt
Operating expenses
Write-up/downs
Earnings before tax
Q1 2016
22
14
1
0
-40
-3
2016
89
57
9
4
-132
-1
27
Numbers do not include effects from group contribution
KLP Kommunekreditt AS
KLP Boligkreditt AS
NOK MILLIONS, YTD
Net interest income
Gain/loss financial asset/debt
Other income
Operating expenses
Earnings before tax
Q1 2017
9
0
-8
2
Q1 2016
10
3
-8
6
2016
37
3
-29
11
Q1 2017
19
2
NOK MILLIONS, YTD
Net interest income
Gain/loss financial asset/debt
Other income
Operating expenses
Earnings before tax
-5
16
Q1 2016
19
3
-5
17
2016
68
4
-19
53
Balance sheets
KLP Banken Group
NOK MILLIONS
Lending to credit institutions
Loans to customers
Interest bearing securities
Other assets
Total assets
Borrowing from credit inst.
Bond debt
Deposits
Other debt
Total liabilities
Equity
Total liabilities and equity
KLP Banken AS
31.03.2017 31.03.2016 31.12.2016
1 172
1 056
1 567
30 657
27 094
29 962
2 393
3 843
2 718
161
207
151
34 383
32 200
34 397
23 241
8 939
334
32 515
1 868
34 383
22 283
7 884
488
30 655
1 545
32 200
23 451
8 688
408
32 547
1 850
34 397
KLP Boligkreditt AS
NOK MILLIONS
Lending to credit institutions
Loans to customers
Interest bearing securities
Other assets
Total assets
Borrowing from credit inst.
Bond debt
Deposits
Other debt
Total liabilities
Equity
Total liabilities and equity
NOK MILLIONS
Lending to credit institutions
Loans to customers
Interest bearing securities
Other assets
Total assets
Borrowing from credit inst.
Bond debt
Deposits
Other debt
Total liabilities
Equity
Total liabilities and equity
31.03.2017 31.03.2016 31.12.2016
1 858
3 678
3 056
8 787
7 299
7 994
1 090
749
950
989
993
978
12 725
12 718
12 979
1 924
8 939
104
10 967
1 758
12 725
3 237
7 884
117
11 238
1 480
12 718
2 363
8 688
173
11 224
1 754
12 979
KLP Kommunekreditt AS
31.03.2017 31.03.2016 31.12.2016
172
124
115
4 588
4 012
4 722
44
104
44
13
10
4
4 817
4 251
4 886
783
3 745
8
4 536
281
4 817
170
3 796
9
3 975
276
4 251
849
3 745
11
4 606
280
4 886
NOK MILLIONS
Lending to credit institutions
Loans to customers
Interest bearing securities
Other assets
Total assets
Borrowing from credit inst.
Bond debt
Deposits
Other debt
Total liabilities
Equity
Total liabilities and equity
31.03.2017 31.03.2016 31.12.2016
450
257
415
17 282
15 783
17 246
1 258
2 990
1 724
111
155
134
19 101
19 184
19 518
525
17 573
249
18 347
754
19 101
2 832
15 249
387
18 469
715
19 184
1 171
17 343
263
18 776
742
19 518
Content
•
Financial highlights
•
Cover Pool Report – KLP Boligkreditt AS
•
Cover Pool Report – KLP Kommunekreditt AS
Overview
Key data
NOK MILLIONS
Total loan balance
Bank deposits
Norwegian AAA-rated covered bonds
Total cover pool
31.03.2017
4 576 813 403
171 524 558
40 000 000
4 788 337 961
Covered bonds issued
Over-collateralisation
3 743 000 000
27,9 %
No. of loans
Average loan balance
WA Seasoning (months)
WA Remaining terms (months)
WA Indexed LTV
WA Unindexed LTV
Percentage variable mortgages
KLP BANKEN AS RATINGS
Bank deposits
Baseline Credit Assessment
Adjusted Baseline Credit Assessment
Counterparty Risk Assessment
Moody's
A2 / P-1
baa2
baa1
A1(cr) / P- 1(cr)
KLP BOLIGKREDITT AS RATINGS
Covered bond programme
4 207
1 087 904
47,5
253,0
43,1 %
47,1 %
100,0 %
Moody's
Aaa
Geographic loan distribution
Cover pool composition
KLP members’ share
Nominal loan balance
Nominal amounts
of total loan balance
1%
4%
0%
89 %
96 %
100 %
Norway
11 %
Other
Mortgages
Bank deposits
Covered bonds
Members
Non-members
Geographical distribution
Geographical loan distribution
Geographical mortgage distribution
% of total loan balance
COUNTY
Akershus
Oslo
Hordaland
Østfold
Vestfold
Rogaland
Sør-Trøndelag
Buskerud
Troms
Hedmark
Møre og Romsdal
Nordland
Oppland
Finnmark
Telemark
Vest-Agder
Aust-Agder
Nord-Trøndelag
Sogn og fjordane
Total loan balance
NOK
947 020 797
636 085 235
412 031 774
407 397 709
349 376 584
303 384 169
251 626 030
227 226 463
181 524 998
172 868 814
152 941 992
145 997 136
105 562 338
69 232 585
67 356 595
61 787 921
36 385 195
33 822 251
15 184 818
4 576 813 403
0%
0-2%
2-4%
4-6%
6-10%
>10%
Loan-to-value
Indexed LTV distribution
Unindexed LTV distribution
LTV INTERVAL
≤40
40-50
50-60
60-70
>70
Total loan balance
NOK
1 539 956 447
820 134 004
960 297 649
1 221 544 205
34 881 097
4 576 813 403
LTV INTERVAL
≤40
40-50
50-60
60-70
>70
Total loan balance
NOK
1 935 266 068
927 251 842
1 040 627 395
647 310 991
26 357 108
4 576 813 403
LTV-distribution
LTV-distribution
Unindexed, % of total
Indexed, % of total
42 %
34 %
27 %
18 %
21 %
20 %
23 %
14 %
1%
≤40
40-50
50-60
60-70
>70
1%
≤40
40-50
50-60
60-70
>70
Seasoning
Seasoning
Remaining terms
MONTHS
≤12
12-24
24-36
36-60
>60
Total loan balance
NOK
2 414 952
8 404 960
14 054 554
61 994 307
4 489 944 630
4 576 813 403
MONTHS
≤12
12-24
24-36
36-60
>60
Total loan balance
Remaining terms
Seasoning
Months, % of total
Months, % of total
25 %
98 %
20 %
0%
0%
0%
1%
≤12
12-24
24-36
36-60
>60
NOK
911 377 290
995 562 231
751 412 158
790 729 436
1 127 732 288
4 576 813 403
≤12
22 %
12-24
16 %
17 %
24-36
36-60
>60
Interest and repayment
Repayment structure
Interest rate structure
FREQUENCY
Monthly
Quarterly
Semi-annually
Total loan balance
NOK
4 197 672 763
371 992 559
7 148 081
4 576 813 403
TYPE
Annuity
Constant amortisation
Total loan balance
Interest payment frequency
Payment profile
% of total loan balance
% of total loan balance
NOK
4 334 071 267
242 742 136
4 576 813 403
5%
8 %0 %
Monthly
Annuity
Quarterly
Constant
amortisation
Semiannually
92 %
95 %
Delinquencies
NOK
7< >30 days
30< >90 days
>90 days
Total
LOAN BALANCE
29 976 584
29 976 584
AMOUNT IN
ARREARS
129 835
129 835
LOAN BALANCE IN % OF
COVER POOL LOANS
0,7 %
0,0 %
0,0 %
0,7 %
Content
•
Financial highlights
•
Cover Pool Report – KLP Boligkreditt AS
•
Cover Pool Report – KLP Kommunekreditt AS
Overview
Key data
NOK
Total nominal loan balance
Bank deposits
AAA-rated bonds
Total cover pool
31.03.2017
17 138 409 670
449 268 286
2 494 000 000
20 081 677 956
Covered bonds issued
Over-collateralisation
18 949 000 000
6,0 %
No. of loans
Average loan size
WA life (years)
WA Remaining terms (months)
KLP KOMMUNEKREDITT AS RATINGS
Covered bond programme
Moody's
Aaa
817
20 977 246
12
255
All loans are either made directly to or are guaranteed by
Norwegian municipalities or county administrations
Geographic loan distribution
Cover pool composition
Nominal loan balance
Nominal amounts
0%
15 %
The pool only includes loans with an unconditional and
irrevocable on-demand guarantee of payment covering both
interest and principal
85 %
1 00 %
All covered bonds are issued in NOK
Norway
Others
Public sector loans
Substitution assets
Geographical distribution
Geographical loan distribution
Geographical distribution
% of total loan balance
COUNTY
Nordland
Møre og Romsdal
Hedmark
Sør-Trøndelag
Vestfold
Sogn og Fjordane
Buskerud
Hordaland
Akershus
Østfold
Oppland
Rogaland
Nord-Trøndelag
Finnmark
Troms
Vest-Agder
Aust-Agder
Telemark
Oslo
Svalbard
Total loan balance
NOK
2 082 989 489
1 715 985 647
1 511 282 804
1 470 786 134
1 318 021 607
1 122 335 222
933 070 299
887 578 295
826 606 585
796 439 238
705 299 620
690 428 785
657 393 779
648 523 826
592 033 912
493 948 451
361 526 804
186 390 232
100 000 000
37 768 943
17 138 409 670
0%
0-2%
2-4%
4-6%
6-10%
>10%
Debtor and collateral concentration
Debtor concentration
% of total loan balance
Debtor concentration
TOP 10 LARGEST DEBTORS
Debtor 1
Debtor 2
Debtor 3
Debtor 4
Debtor 5
Debtor 6
Debtor 7
Debtor 8
Debtor 9
Debtor 10
Top 10 total loan balance
Largest 10 in percent of total loan balance
NOK
689 882 192
582 124 992
490 000 000
427 689 414
382 314 261
362 281 630
351 750 527
350 000 000
330 613 605
292 276 513
4 258 933 134
24,9 %
4 %3 %
3%
2%
2%
2%
2%
2%
2%
2%
75 %
Debtor 1
Debtor 2
Debtor 3
Debtor 4
Debtor 5
Debtor 6
Debtor 7
Debtor 8
Debtor 9
Debtor 10
Others
Collateral concentration
% of total loan balance
Collateral distribution
COLLATERAL TYPE
Direct claim against municipality
Loan with guarantee of municipality
Direct claim against county
Loan with guarantee of county
Total loan balance
5,0 %
5,7 %
NOK
13 795 760 636
1 516 267 580
971 920 059
854 461 395
17 138 409 670
Direct claim against
municipality
8,8 %
Loan with guarantee of
municipality
Direct claim against
county
80,5 %
Loan with guarantee of
county
Interest and repayment structure
Loan size
Repayment structure
NOK
Constant Amortisation
Annuity
Partial Bullet
Bullet
Total
LOAN BALANCE
15 076 913 162
66 578 340
27 472 000
1 967 446 168
17 138 409 670
SHARE
88 %
0%
0%
11 %
100 %
NO. OF
LOANS
768
5
1
43
817
1 601 228 302
7 110 741 630
4 678 789 081
2 001 341 987
1 746 308 670
17 138 409 670
SHARE
9%
41 %
27 %
12 %
10 %
100 %
NO. OF
LOANS
441
302
58
11
5
817
Interest rate type
Rate reset period
NOK
< 1 month
> 1 month - < 3 month
> 3 month - < 1 yr
> 1 yr - < 2 yr
> 2 yr - < 5 yr
> 5 yr
Total
NOK
< 10 mill.
> 10 mill. - < 25 mill.
> 25 mill. - < 100 mill.
> 100 mill. - < 250 mill.
< 250 mill.
Total
LOAN BALANCE
LOAN BALANCE
9 173 761 383
2 907 244 747
883 973 833
800 477 314
2 335 267 802
1 037 684 593
17 138 409 672
SHARE
54 %
17 %
5%
5%
14 %
6%
100 %
ACC %
54 %
70 %
76 %
80 %
94 %
100 %
NOK
Variable
Fixed
Total
LOAN BALANCE
12 219 072 804
4 919 336 866
17 138 409 670
NO. OF
LOANS
71 %
687
29 %
130
100 %
817
SHARE
Delinquencies
Loan in arrears
NOK
0< >30 days
30< >60 days
60< >90 days
>90 days
Total
LOAN BALANCE
160 765 450
160 765 450
AMOUNT IN
ARREARS
4 053 334
4 053 334
LOAN BALANCE IN % OF
COVER POOL LOANS
0,9 %
0,0 %
0,0 %
0,0 %
0,9 %
Contacts
Christopher Steen
CEO KLP Boligkreditt AS / Head of Treasury KLP Banken Group
[email protected]
+ 47 952 24 953
Kristian Lie-Pedersen
Analyst
[email protected]
+ 47 970 75 107
Marit Fageraas Øien
Business Controller
[email protected]
+ 47 917 54 695
Disclaimer
This material does not constitute an offering circular in whole or part and you must read the actual offering circular related to the Covered Bond program and the notes
which may be issued from time to time thereunderas referred to in this material (respectively the "Program" and the “Notes”) before making an investment decision. The
offering circular for the Program is available from the Arranger. You should consult the offering circular for more complete information about KLP Kommunekreditt
AS/KLP Boligkreditt AS and the Programs.
This material is presented solely for information purposes and is not to be construed as a solicitation or an offer to buy orsell any securities or related financial
instruments and should not be treated as giving investment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any
recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein.
It should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this material are subject to change without
notice and KLP Kommunekreditt AS/KLP Boligkreditt AS is not under any obligation to update or keep current the information contained herein. In addition, institutions
mentioned in this material, their affiliates, agents, directors, partners and employees may make purchases and/or sales of the Notes as principal or agent or may act as
market maker or provide investment banking or other services in respect of the Program or the Notes which may be issued from time to time thereunder. KLP
Kommunekreditt AS/KLP Boligkreditt AS, the Arranger and the Dealers and their respective affiliates, agents, directors, partners and employees accept no liability
whatsoever for any loss or damage of any kind arising out of the use ofall or any part of this material.
KLP Kommunekreditt AS/KLP Boligkreditt AS cannot guarantee that the information contained herein is without fault or entirelyaccurate. The information in this material
is based on sources that KLP Kommunekreditt AS/KLP Boligkreditt AS believes to be reliable. KLP Kommunekreditt AS/KLP Boligkreditt AS can however not guarantee
that all the information is correct. Furthermore, information and opinions may change without notice. KLP Kommunekreditt AS/KLP Boligkreditt AS is under no obligation
to make amendments or changes to this publication if errors are found or opinions or information change. KLP Kommunekreditt AS/KLP Boligkreditt AS accepts no
responsibility for the accuracy of its sources.
The Notes are not to be offered or sold in any jurisdiction in circumstances in which the distribution of this document or the Notes would be prohibited in such
jurisdiction. This document must not be acted on or relied on by persons who are not eligible to invest in the Notes. Any investment or investment activity to which this
communication relates is available only to persons eligible to invest in the Notes and will be engaged in only with such persons.
Furthermore, you should consult with your own legal, regulatory, tax, business, investment, financial and accounting adviserstothe extent that you deem it necessary,
and make your own investment, hedging and trading decisions (including decisions regarding the suitability of an investment in the Notes which may be offered from
time to time under the Program) based upon your own judgment and advice from such advisers as you deem necessaryand not upon any view expressed in this
presentation.