AXA BANK EUROPE SCF
COVERED BOND PROGRAM
Investor Presentation – March 2016
Table Of Content
1.
Program Update
P.3
2.
AXA Bank Europe & AXA Banque
P.8
3.
AXA Bank Europe SCF Program
P.17
4.
Cover Pool
P.25
5.
Overview of the Underlying Residential Loans
Portfolios
P.32
6.
Conclusion
P.49
7.
Contacts
P.51
8.
Appendix
P.53
2 | AXA Bank Europe SCF // Investor Presentation
Program Update
Program Update
Initial set-up
AXA Bank Europe is a Belgium based bank focusing on retail banking activities in
Belgium:
AXA Bank Europe is rated A/A-1, Outlook Positive by S&P and A2/P-1, Outlook Stable by Moody’s.
AXA Bank Europe is a significant and long-established player in the Belgian mortgage market, which is
one of the healthiest and most stable housing markets in Europe.
The EUR 5bn AXA Bank Europe SCF (ABE SCF) program was initially set-up in 2010 as
the funding platform for AXA Bank Europe (ABE).
The Obligations Foncières issued by ABE SCF were originally secured by AAA-rated
RMBS Notes backed by prime Belgian residential mortgage loans originated and
serviced by ABE.
The Obligations Foncières issued by ABE SCF are rated Aaa/AAA by Moody’s/Fitch.
4 | AXA Bank Europe SCF // Investor Presentation
Program Update
Recent Change: Inclusion of French Assets via Promissory Note
Since November 2014, ABE SCF is also being used as a funding platform for AXA
Banque (France).
In November 2014, ABE SCF subscribed a EUR 450 MM Mortgage Promissory Note (*)
backed by guaranteed French residential home loans originated by AXA Banque in
France and serviced by Crédit Foncier de France (CFF).
The underlying residential loans are guaranteed by Crédit Logement (currently rated
Aa3, Outlook Stable by Moody’s / AAL, Outlook Stable by DBRS).
To subscribe such Mortgage Promissory Note, ABE SCF issued a EUR 400 MM 5Y
Obligations Foncières Series that has been purchased by AXA Banque (France).
The inclusion of Mortgage Promissory Notes is limited by law to a maximum of 10% of
ABE SCF’s total balance sheet (**).
(*) A Mortgage Promissory Note is a promissory note secured by a specified mortgage loan; it is a written promise to repay a specified sum of money plus
interest at a specified rate and length of time to fulfill the promise.
(**) Mortgage Promissory Notes (“billets à ordre hypothécaires”) are governed by Article L.313-42 et seq. of the French Code monétaire et financier. French
Mortgage Promissory Notes can be included in Société de Crédit Foncier (SCF)’s cover pool provided that (a) such Mortgage Promissory Notes do not
exceed 10% of the Issuer's assets in accordance with Article L. 513-6 of the French Code monétaire et financier and (b) the loans refinanced by such
Mortgage Promissory Notes are (i) secured by a first ranking mortgage over an eligible real estate (or by other real estate security interests providing an
equivalent security interest in accordance with Article L. 513-3 of the French Code monétaire et financier) or (ii) guaranteed by a credit institution or an
insurance company that does not belong to the same group as the relevant SCF.
5 | AXA Bank Europe SCF // Investor Presentation
Program Update
Future Change & Impact: RMBS as Collateral to be Replaced by Secured Loans (1/3)
ABE SCF’s cover pool is currently for 90% composed of internal RMBS tranches:
RS-2 (EUR 1.5bn AAA tranche) & RS-3 (EUR 2.7bn AAA tranche).
As from 1 January 2018, CRD IV / CRR requires that own (Group) issued RMBS and
subscribed by Sociétés de Crédit Foncier may only be refinanced within 10% of the
nominal amount of the Obligations Foncières and other liabilities benefiting from the
privilège (priority right of payment).
As required by French regulations, ABE SCF submitted an Action Plan to the French regulator (ACPR)
in December 2015 detailing two options by which ABE SCF intends to comply with the above
requirement.
6 | AXA Bank Europe SCF // Investor Presentation
Program Update
Future Change & Impact: RMBS as Collateral to be Replaced by Secured Loans (2/3)
Preferred option: there are currently discussions ongoing in France to harmonize the
legal frameworks applicable to Sociétés de Crédit Foncier (SCF) and Sociétés de
Financement de l’Habitat (SFH). Expected key measures are:
Permission granted to SCF to make use of secured loans (“prêts sécurisés”) on the asset side;
Removal of the 10% cap applicable to Mortgage Promissory Notes (“billets à ordre”);
Removal of the 35% limit applicable to guaranteed home loans.
If the SCF / SFH alignment becomes effective in 2016, the RMBS Senior Notes included
in ABE SCF’s cover pool will be substituted by secured loans (“prêts sécurisés”)
secured by eligible residential home loans which would be pledged to the benefit of
ABE SCF.
Indeed, under the current French legislative framework, the use of “secured loans” is
only allowed for SFH vehicles.
Alternative Option (if the Preferred Option cannot be implemented): a conversion of
ABE SCF into a Société de Financement de l’Habitat (SFH) will be contemplated.
7 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe &
AXA Banque (France)
AXA Bank Europe & AXA Banque within the AXA Group
AXA SA
S&P: A-/A-2, Outlook Positive
Moody’s: A2/P-1, Outlook Stable
Fitch: A/F1, Outlook Stable
100%
AXA France
Assurance SAS
100%
100%
AXA France
Vie SA
51%
49%
AXA Banque
(France) SA
Non-rated
9 | AXA Bank Europe SCF // Investor Presentation
S&P: A+, Outlook Positive
Moody’s: Aa3, Outlook Stable
Fitch: AA-, Outlook Stable
AXA Bank
Europe SA/NV
S&P: A/A-1, Outlook Positive
Moody’s: A2/P-1, Outlook Stable
99.99%
AXA Bank
Europe SCF SA
AXA Bank Europe within the AXA Group
AXA Bank Europe
Is fully integrated within the AXA Group.
- AXA Bank Europe is wholly-owned (100%) by AXA SA.
Its retail banking operations are essentially based in Belgium (Non Belgium lending activities are in
run-off since end-2011).
These activities are provided in line with AXA business model, through which AXA Bank Europe offers
both insurance and banking products & services to retail clients.
In Belgium, AXA Bank Europe provides retail credit, savings, investments and pension products and
services.
AXA Bank Europe also develops and implements synergies with other AXA bank entities such as
France and Germany.
10 | AXA Bank Europe SCF // Investor Presentation
11 AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe within the AXA Group
Intermediation Activity in Belgium
VISION
MISSIONS
Support of Group activities
Leverage on ABE’s execution, trade processing,
collateral management, trade reporting, clearing,
valuation capabilities & expertise.
Providing an easy access to the interbank and
central clearer for derivatives market to AXA entities
in a post EMIR world.
« Mutualize ABE’s banking expertise
within AXA Group »
Intermediation role in financial products
Derivatives, repo’s, EMTN structuring
Propose tailor made financial solutions
12 | AXA Bank Europe SCF // Investor Presentation
Provide comprehensive and easy to use services
to AXA companies in the fields of derivatives and
Repo’s.
Remain on the edge of the derivative market,
derivative processing and evolving regulation to
be able to translate this into services provided to
AXA entities.
Contribute to ABE’s profitability within a tight risk
framework (intermediation / no proprietary
trading and no market making).
ABE Balance Sheet
Non-Audited Key Figures
AXA Bank Europe
(In EUR MM – As of Dec. 2015) (**)
Assets
Commercial
Bank
NonCommercial /
Capital
Market Bank
Treasury
Bank
Other Assets
Total Assets
Belgium – Commercial Balance Sheet
(In EUR MM – As of Dec. 2015) (**)
Assets
Liabilities
17,939
6,518
3,220
666
28,343
Commercial
Bank
NonCommercial /
Capital
Market Bank
Treasury
Bank
Equity
Total
Liabilities
13 | AXA Bank Europe SCF // Investor Presentation
Liabilities
18,356
Fixed Rate
Mortgages
8,918
EMTN
1,505
5,899
Savings
Certificates
170
3,435
Variable
Rate
Mortgages
(*)
Investment
Credits
1,333
Term
Deposits
1,527
Personal
Loans
835
Savings
12,230
Cash
Credits
72
Current
Accounts
2,458
Other
Assets
833
Total
Assets
17,890
Total
Liabilities
17,890
5,531
1,021
28,343
(*) Capped mortgages that include at least one period of variable
interest rate.
(**) FV of derivatives and other assets are excluded.
AXA Banque (France) within the AXA Group
AXA Banque (France)
Is ultimately wholly-owned (100%) by AXA SA.
Offers a complete range of bank products to retail clients in France.
Intends to pursue its commercial development in France by:
- Constantly improving the services quality;
- Strengthening the Assur-Bank model via AXA France’s distribution networks, mainly its 2 Tied
Agents (“Agents Généraux d’Assurance”) networks, but also AXA France’s salaried sales-force
and IFA (*);
- Developing the visibility of the banking activities in these networks;
- Increasing synergies with AXA Wealth Management.
Negotiated partnerships with two major players in the French residential loan market:
- AXA Banque uses Crédit Foncier de France’s (CFF) platform (including IT systems) to originate
and manage its home loans offering;
- AXA Banque concluded an agreement with Crédit Logement (CRELOG). Currently, 88% of AXA
Banque’s residential home loans production benefit from a guarantee granted by CRELOG.
“Ingénierie finance assurance” (IFA) is an entity of AXA offering to “Conseillers en gestion de patrimoine indépendants” (CGPI)
customized/innovative services intended to their private/VIP clients.
14 | AXA Bank Europe SCF // Investor Presentation
AXA Banque (France)
Key Facts
Staff
630 AXA Banque employees, among which 450 dedicated to the relationships with clients and with the
distribution network.
AXA France network
3,250 « Agents Généraux » (= Tied agents), i.e., exclusive distributors
mandated by the insurance company
Among which 745 Agents « Assur-Banquiers ».
3,500
1,000
1,200
2,150
salespersons from the savings and coverage network
tied agents specialists in wealth and insurance products
independant mandated business providers (CGPI = IFAs)
brokers
715,000 clients
Among which 65,000
new clients during 2015.
Business figures (*)
RETAIL LOANS
EUR 6bn outstanding
SAVINGS ACCOUNTS
CURRENT ACCOUNTS
EUR 2.1bn outstanding
EUR 837 MM outstanding
426b000 savings account outstanding
275,000 current acounts
214,000 credit cards
Of which 55% mortgages
182,000 loans outstanding
15 | AXA Bank Europe SCF // Investor Presentation
(*) As of Dec. 31, 2015
AXA Banque (France) Balance Sheet
RETAIL BANKING
ASSETS
EUR MM
628
Treasury
LOANS PORTFOLIO
EUR MM
6 171
Retail Assets
Bonds Portfolio
914
Mortgage loans
3 177
Other Assets
100
Consumer loans
882
TOTAL
LIABILITIES
Treasury
7 813
EUR MM
671
3 842
Debt
2 688
Other Liabilities
TOTAL
16 | AXA Bank Europe SCF // Investor Presentation
1 630
TOTAL
5 690
DEPOSITS
Retail Funding
Shareholder's Equity
Private banking loans
395
218
7 813
EUR MM
Current accounts
785
Savings accounts
2 169
Term deposits
TOTAL
725
3 679
(*) As of Nov. 30, 2015
AXA Bank Europe SCF
Covered Bond Program
AXA Bank Europe SCF Covered Bond Program
By mean of the ABE SCF program, ABE and ABF are able to diversify the funding sources.
The French Covered Bond legislation provides ABE and ABF with a strong and well recognized
framework to access long-term funding.
AXA Bank Europe SCF – Program Characteristics
Issuer
AXA Bank Europe SCF
Program Size
EUR 5bn
(Current Outstanding: EUR 3.9bn)
External Ratings
Aaa / AAA (Moody’s / Fitch)
EUR 4.21bn Aaa/AAA (Moody's/Fitch) Senior RMBS
Notes backed by prime Belgian residential mortgages
originated and serviced by AXA Bank Europe
Collateral
EUR 450 MM French Mortgage Promissory Note
backed by prime French guaranteed home loans
originated by AXA Banque (France) and serviced by
CFF and guaranteed by Crédit Logement
Minimum Overcollateralization (OC)
Currently 19.6% (5% min. committed)
Compliance with European Legislation
CRD & UCITS Compliant
ECB Eligible
Risk Weighting
10% (*)
Listing
Luxembourg Stock Exchange
ECBC Label
Yes
(*) Under Standard Approach of IRBA.
18 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe SCF Covered Bond Program
Structure Highlights
AXA Bank Europe SCF is 99.99% owned by AXA Bank Europe.
AXA Bank Europe SCF is licensed as a specialized credit institution (as from January
1st, 2014) with the status of a Société de Crédit Foncier under French law to issue
Obligations Foncières.
AXA Bank Europe SCF is fully supported by AXA Bank Europe via a separate comfort
letter required by the French Autorité de contrôle prudentiel et de résolution (ACPR) as
part of the licensing process and a cash advance mechanism.
AXA Bank Europe SCF is legally bankruptcy remote from AXA Bank Europe.
AXA Bank Europe
Comfort Letter & Cash
Advance Mechanism
AXA Bank Europe
SCF
(Issuer)
19 | AXA Bank Europe SCF // Investor Presentation
Issues AAA rated
Obligations Foncières
Obligations
Foncières
(Investors)
AXA Bank Europe SCF Covered Bond Program
Structural Enhancements (1/3)
AXA Bank Europe supports AXA Bank Europe SCF
Via a cash advance mechanism: AXA Bank Europe will advance cash in an amount equal to the sums
to be paid by AXA Bank Europe SCF under the Obligations Foncières which cannot be paid from the
interest received from the cover pool assets on each payment date.
As provider of a loan to finance the overcollateralization (OC):
- Minimum 5% OC at the SCF level has to be maintained at all times;
- Current OC level is 19.6% (vs. min. 5% required by law / rating agencies).
As provider of a first demand guarantee to cover AXA Banque (France)’s obligations under the
Mortgage Promissory Note.
AXA Bank Europe SCF also benefits from credit enhancement:
At the RMBS level:
- The SCF only invests in AAA-rated Senior RMBS Notes backed by prime Belgian residential
mortgage loans originated by AXA Bank Europe;
- Current credit enhancement for the AAA Senior RMBS Notes: Royal Street RS-2 @ 17.7% /
Royal Street RS-3 @ 13.5%.
At the Mortgage Promissory Note level:
- The outstanding nominal of the guaranteed residential home loan portfolio exceeds by 11% the
outstanding nominal of the Mortgage Promissory Note.
20 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe SCF Covered Bond Program
Structural Enhancements (2/3)
AXA Bank Europe SCF assets are predominantly AAA-rated Senior RMBS Notes issued
by Royal Street in Belgium, which has been used for the purpose of transferring
Belgian assets to the French SCF.
AXA Bank Europe’s primary motivation for structuring RMBS Notes used as collateral
of the SCF was to facilitate the cross-boarder transfer of Belgian mortgage loans into
the French Société de Crédit Foncier (AXA Bank Europe SCF).
This RMBS structure has been created by AXA Bank Europe solely to transfer Belgian
mortgage loans to AXA Bank Europe SCF.
Sells Belgian residential
mortgage loans to RS
AXA
AXABank
BankEurope
Europe
(Seller
(Seller&&Servicer)
Servicer)
Royal
RoyalStreet
Street
Compartment
Compartment
(SIC)
(SIC)
Sells AAA-rated RMBS
to ABE SCF
Issues AAA-rated
Obligations Foncières
AXA
AXABank
BankEurope
Europe
SCF
SCF
(Issuer)
(Issuer)
Obligations
Foncières
(Investors)
True sale of the mortgages at the RMBS level and sale of the Senior RMBS Notes to
AXA Bank Europe SCF.
As a side effect, this “two layer” structure provides additional credit enhancement to
investors.
21 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe SCF Covered Bond Program
Structural Enhancements (3/3)
The Obligations Foncières benefit from structural enhancement at both the RMBS and
the French Mortgage Promissory Note levels, but also at the AXA Bank Europe SCF
level.
Royal Street
Compartment (SIC)
RMBS Class A (AAA)
benefit from subordination,
guaranteed excess spread,
& reserve fund
AXA Bank Europe SCF
(Issuer)
Sells AAA rated
RMBS to
ABE SCF
Obligations Foncières
benefit from
overcollateralization &
structural enhancements
RMBS Class B (NR)
(retained by AXA Bank Europe)
Obligations Foncières
(Investors)
Issues AAA rated
OFs
Investors benefit from
protection at the
ABE SCF, RMBS &
Mortgage Promissory
Note levels
AXA Banque (France)
Mortgage Promissory Note (NR)
benefits from Overcollateralization
Sells non-rated Mortgage
Promissory Note to ABE SCF
The RMBS Junior Notes have been purchased by AXA Bank Europe. The first piece of
credit loss on top of the excess spread on the Belgian mortgage collateral are therefore
borne by AXA Bank Europe.
22 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe SCF Covered Bond Program
Liquidity Support
In addition to the cash advance mechanism and the first demand guarantee, AXA Bank
Europe SCF benefits from asset liability management tools to fund temporary liquidity
needs:
In particular, AXA Bank Europe SCF may at any time sell or liquidate assets if required to repay
Obligations Foncières.
The RMBS are ECB repo eligible.
23 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe SCF Covered Bond Program
Interest Rate Hedging Strategy
Interest rate risk is mitigated using swaps.
AXA Bank Europe SCF enters into a swap for each publicly placed Series of Obligations Foncières to
swap the Euribor 3 month floating interest rate received on the RMBS Notes into the fixed rate coupon
to be paid to the publicly placed Obligations Foncières’ investors.
No swaps have been concluded at the French Mortgage Promissory Note level since the (fixed)
coupon is matched with the (fixed) coupon of the corresponding Obligations Foncières Series.
The notional of each swap is the amount of the respective Series of Obligations
Foncières.
Hedging counterparties subject to minimum rating requirement as defined per rating
agencies methodologies.
Swaps comply with the swap criteria of Moody’s and Fitch.
One-way collateral posting under CSA.
24 | AXA Bank Europe SCF // Investor Presentation
Cover Pool
AXA Bank Europe RMBS Program
Royal Street
AXA Bank Europe SCF’s cover pool is currently made up for 90% of internal RMBS
tranches:
EUR 4.21bn of AAA-rated Senior RMBS Notes issued by the second and third compartments of Royal
Street (Compartments RS-2 and RS-3, respectively) ultimately backed by prime Belgian residential
mortgage loans originated and serviced by ABE:
- RS-2: EUR 1.5bn AAA tranche;
- RS-3: EUR 2.7bn AAA tranche.
EUR 450 MM of Mortgage Promissory Note backed by guaranteed French residential home loans
originated by ABF and serviced by Crédit Foncier de France (CFF). The underlying residential loans
are guaranteed by Crédit Logement.
RS-2 and RS-3 have been structured solely to transfer part of the eligible Belgian prime
residential mortgage portfolio of AXA Bank Europe to AXA Bank Europe SCF.
Performance details of RS-2 and RS-3 are available on: https://www.axabank.be/nl/overaxa-bank/investor-relations-financial-information/royal-street
RS-1 was issued in 2008 and is not used as collateral for ABE SCF.
26 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe RMBS Program
Royal Street, Compartment RS-2 & RS-3
Replenishment period: initially 5 years (starting from the issue date) subject to strict
eligibility and replenishment criteria.
RS-2: till November 2017 (recently extended by 2 years) / RS-3 till October 2017.
First call date after 5 years (Optional Redemption Call).
Reserve Fund: 1% of the initial amount of the issued notes.
Royal Street,
Compartment
RS-2
Royal Street,
Compartment
RS-3
Profile (%)
Credit
Enhancement
(**)
Tranche
Size (EUR)
Rating
(Moody’s/Fitch)
A
1,500,000,000
Aaa/AAA
83.3%
17.7%
B
300,000,000
NR/NR
16.7%
1.0%
Total
1,800,000,000
100%
Profile (%)
Credit
Enhancement
(**)
Tranche
Size (EUR) (*)
Rating
(Moody’s/Fitch)
A
2,712.500,000
Aaa/AAA
87.5%
13.5%
B
387.500,000
NR/NR
12.5%
1.0%
Total
3,100,000,000
27 | AXA Bank Europe SCF // Investor Presentation
100%
(*) The RS-3 portfolio was increased by EUR 1bn in July 2013 via a Tap issuance.
(**) The guaranteed excess spread (35bps) is not taken into account.
AXA Bank Europe RMBS Program
Royal Street, Compartment RS-2 & RS-3 – Belgian Assets Pool Overview
Royal Street RS-2 & RS-3 – Portfolio Overview
RS-2 Portfolio
(February 2016)
RS-3 Portfolio
(January 2016)
Replenishment
Constraints
(Applicable to each
individual portfolio)
Current Loan Balance (EUR)
1,748,144,541
2,930,678,792 (*)
-
4,678,823,333
Number of Loans
28,127
43,355
-
71,482
Number of Borrowers
20,241
31,554
-
51,795
Average Loan Balance
per Borrower (EUR)
86,367
92,878
-
90,445
WA Seasoning (Years)
6.3
5.5
Min. 0.50 (RS-2) / 1.50 (RS-3)
years for all new loans
5.8
WA Remaining Term to
Maturity (Years)
15.8
16.9
-
16.5
WA Current Loan to Current
Value (CLTCV)
53.59%
56.81%
WA < 60%
55.61%
WA Initial Loan to Initial Value
(ILTIV)
73.96%
72.62%
WA < 80%
73.12%
WA Current Loan to Mortgage
Inscription (CLTM)
89.39%
93.01%
WA < 100%
91.66%
WA Current Interest Rate
3.09%
3.07%
WA > 2% (RS-2) /
> 2.5% (RS-3)
3.08%
WA Debt to Income (DTI)
37.84%
35.67%
WA < 42%;
per loan < 60%
36.48%
Aggregate Portfolio
(*) The RS-3 portfolio was increased by EUR 1bn in July 2013 via a Tap issuance.
28 | AXA Bank Europe SCF // Investor Presentation
Mortgage Promissory Note
French Assets Pool Overview
The portfolio backing the Mortgage Promissory Note is entirely made up of residential
home loans:
Originated by AXA Banque in France;
Serviced by Crédit Foncier de France (CFF – rated A-/A2/A by S&P/Moody’s/Fitch), a major player in
France; and
Benefiting from a guarantee mechanism (“mécanisme de caution”) granted by Crédit Logement (rated
Aa3/AAL by Moody’s/DBRS), i.e., these loans are part of the 88% residential loans of ABF with
CRELOG guarantee.
The residential home loan pool is compliant with the general ABF origination policy.
Main eligibility criteria applies to the Mortgage Promissory Note in order to comply with
Article 129 of the CRR. In addition, some specific eligibility criteria applies to the
Mortgage Promissory Note transaction – See next page.
Mortgage Promissory Note –
Main Eligibility Criteria
General ABF Origination Policy
(Examples)
Debt to Income (DTI)
< 38%
Initial LTV
< 100%
29 | AXA Bank Europe SCF // Investor Presentation
Debt to Income (DTI)
< 33%
Outstanding Amount
< EUR 480k
Interest Rate Type
100% Fixed
Average Current LTV
< 80%
Loan Type
100% Residential
(Commercial Excluded)
100% Guaranteed
Mortgage Promissory Note
French Assets Pool Overview
Mortgage Promissory Note – Additional Eligibility Criteria
Loan Type
Crédit Logement guarantee only
Loan Amortization
Amortizing loans –
Bridging loans (“crédits relais”) are excluded
Interest Rate Type
Fixed rate only
Borrower Type
Individuals or SCI (*) Familiales –
AXA Employees are excluded
Loan Schedule
Fully disbursed only
Loan Performance
Loans with an arrear balance are excluded
Debt to Income
< 33%
(*) SCI = société civile immobilière.
30 | AXA Bank Europe SCF // Investor Presentation
Mortgage Promissory Note
Mortgage Promissory Note – French Assets Pool Overview
Mortgage Promissory Note – Portfolio Overview
(December 2015)
Outstanding Balance (EUR)
504,422,070
Number of Loans
2,868
Number of Borrowers
2,772
Average Loan Balance per Borrower (EUR)
175,879
WA Seasoning (Years)
1.4
WA Remaining Term to Maturity (Years)
17.7
WA Current Loan to Current Value
(WA CLTCV)
79.55%
WA Initial Loan to Initial Value (WA ILTIV)
80.63%
WA Interest Rate
2.6%
WA Debt to Income (DTI)
24.3%
31 | AXA Bank Europe SCF // Investor Presentation
Individual Eligibility Criteria
< EUR 480,000
< 80%
< 33%
Overview of the Underlying
Residential Loans Portfolios
AXA Bank Europe
Belgian Housing Market & European Context
Strong housing market in comparison with other European markets.
Supportive tax incentives for mortgage loans (now managed by the three Regions).
Structural factors such as wage indexation and pension planning.
Cultural factor: home-ownership favored by most of the Belgian population.
The Belgian market has remained very stable during the crisis.
Prices have not suffered any significant downturn since 2008.
Since 2012, sales prices have moved just in line with inflation.
Since the 2008 crisis and until now, the Belgian housing market has proved resilient. Developments in
the housing market are relatively de-correlated from business and financial cycles. The probability of a
sharp correction in house prices seems low in the short run.
Healthy home finance market.
Household-related debt (expressed as the housing loans outstanding as a percentage of the GDP) is
lower than the European average.
Mortgages credit policy tends to be more selective when lending to households over the last years.
The Belgian residential mortgage market mainly consists of amortizing loans.
33 | AXA Bank Europe SCF // Investor Presentation
Belgian Housing Market & European Context
House prices (left-hand scale) annual change in %; ownership rate (right-hand scale): share in %.
Source: Eurostat
Between 2008 and 2014, the house prices in Belgium tend to increase.
The ownership rate is higher than 70%.
34 | AXA Bank Europe SCF // Investor Presentation
Overview of the Belgian Housing Market
Belgium is in the group of countries where the nominal value of house prices
increases. Since 2006, it increases nearly without any downside.
35 | AXA Bank Europe SCF // Investor Presentation
Overview of the Belgium mortgage loans market
Loan-to-value ratio at origination
Initial maturity
Source : NBB.
The Belgian banking sector strengthened their lending criteria during the last years.
Therefore, the mortgage credit policy is more cautious in term of Loan-to-Value and
maturity at origination.
36 AXA Bank Europe SCF // Investor Presentation
Positioning of ABE in the Belgian Mortgage Market
Internal refinancing YTD 2014: EUR 0.89bn
Internal refinancing YTD 2015: EUR 2.76bn
Source: AXA Bank Europe
AXA Bank Europe is one of the major players on the mortgage market. AXA Bank Europe
occupies the sixth position in the Belgian market which is quite concentrated.
The four biggest banks (BNPP Fortis, KBC, Belfius, ING) and AXA Bank Europe hold c.90% of the
market share.
Since the last quarter of 2014, the production is highly influenced by the refinanced mortgage
credits (ABE’s internal refinanced credits included).
37 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe Belgian Mortgage Portfolio
ABE offers mortgage loans in the Belgian prime market to individuals for the purchase,
the construction, or the renovation of property.
The credit files are all backed by prime residential first ranking mortgages.
Ongoing improvements of the origination process and of the risk control have enabled
ABE to develop its mortgage lending activity, leading to a sustainable growth of its
mortgage portfolio since 2001 combined with a strong performance.
Excellent risk profile as the default rate on the production of mortgages since 12 months is about
0.20%.
Excellent recovery rate (> 90% at the end of the recovery process).
As a consequence, the net loss ratio remains very low (0.10%) and is fully covered by a cautious
provisioning policy.
The level of loans in the foreclosure process (doubtful loans) remains low. (Please see
RS-2 and RS-3 quarterly investor reports available on: https://www.axabank.be/fr/apropos-axa-banque/investor-relations-and-financial-information/royal-street).
ABE mortgage loans production was strongly impacted by refinancing of loans from
the other competitors; which, at a risk level, have a potential higher credit worthiness
than a new transaction.
38 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe Belgian Mortgage Portfolio
Mortgage Loans Portfolio
The mortgage loans portfolio tends to grow steadily.
Source: AXA Bank Europe
39 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe Belgian Mortgage Portfolio
Credit Quality
The default rate on 12 months on the new production (internal refinancings excluded)
tends to decrease drastically since 2013 to reach about 0.20%.
Source: AXA Bank Europe
The percentage of the bad loans in the mortgage loans portfolio is stable and remains
at a low level.
Source: AXA Bank Europe
40 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe Belgian Mortgage Portfolio
Arrears & Recovery (1/2)
ABE Risk Policy tends
to maintain the
90 DPD at a low level.
Source: AXA Bank Europe
15 Days
Past Due
Manual
Decision
90 Days
Past Due
Time
15 – 90 days past due:
As from 90 days past due:
Enforcement by desk Recovery
Fully automated reminder
cycle (letters)
Arrears management by desk
Remedy: phone contacts,
remediation if possible,
conciliation procedure if
necessary
- Sale of property if necessary
(enforcement of the collateral)
NORMAL
(Performing & Up to 90 DPD)
41 | AXA Bank Europe SCF // Investor Presentation
UNCERTAIN
(Remediation)
- Until repayment or loss
recognition
DOUBTFUL
(Recovery)
AXA Bank Europe Belgian Mortgage Portfolio
Arrears & Recovery (2/2)
AXA Bank Europe’s processes and the use of the industry’s best practices drive the
strong quality of the portfolio.
The recovery process is efficient and fast:
60% of the exposure at default is recovered within the first 24 months.
Gross recovery rate > 90% at the end of the recovery process.
42 | AXA Bank Europe SCF // Investor Presentation
Source: AXA Bank Europe
Overview of the Underlying
Residential Loans Portfolios
AXA Banque (France)
AXA Banque (France) Residential Home Loans Portfolio
AXA Banque (France) originates residential home loans to individuals in France since 2006.
*Data end of year
ABF’s residential home loans portfolio outstanding:
EUR 3.3bn at end-2015;
Increase of 29% between 2014 and 2015.
ABF’s residential home loans production:
Since 2011, regular and sustained progression of the residential home loans origination activity is
demonstrating a successful integration of the banking activity within the distribution network of AXA
France to insurance clients.
*Data end of year
44 | AXA Bank Europe SCF // Investor Presentation
AXA Banque (France) Residential Home Loans Portfolio
Overview
Residential loans 09-30-2015
Outstanding (EUR)
3.1 Bn
Market Share
EUR 3.1bn outstanding as of Sep. 30, 2015
0,4%
WA Maturity at origination (in months)
WA Outstanding balance (EUR)
223
0.4% of the French residential market.
136.876
22,400 loans granted to 19,385 borrowers:
10 Highest borrowers represent 0.62% of the portfolio.
8.5% of the portfolio made of loans granted to AXA employees.
Outstanding amount at origination:
Minimum of EUR 50,000.
Original loan balance of EUR 3.7bn, Average balance of EUR 162k.
Current outstanding of EUR 3.1bn, Average current balance of EUR 137k.
92% of the loans have a current balance lower than EUR 500k.
Maturity of the portfolio:
Weighted average maturity at origination: 223 months.
Weighted average remaining maturity: 208 months.
Amortizing loans (6 to 30 years) represent 98% of the portfolio.
Bridging loans (“crédits relais”) have a maturity up to 2 years.
45 | AXA Bank Europe SCF // Investor Presentation
AXA Banque (France) Residential Home Loans Portfolio
Portfolio Characteristics
Guarantee types
Guarantee from Crédit Logement.
- NB: the pool can only include loans with a CRELOG guarantee.
Mortgage guarantee.
Other: mainly AXA France Life insurance policy.
Loan origination criteria
Analysis of the client’s ability to repay (Debt to Income < 38%).
Max. LTV when granting a loan:
- Max. 100% for own-occupied properties.
- Max. 110% for properties bought for rental purposes or when the client already owns its main
property.
Loan insurance
Borrowers have to subscribe insurance, which covers life accidents (mainly death and disability) and
with AXA Banque as beneficiary.
Insurance policies are underwritten by AXA France Vie (group insurance) when distributed by AXA
Banque. A borrower can undertake an individual insurance with another company.
46 | AXA Bank Europe SCF // Investor Presentation
AXA Banque (France) Residential Home Loans Portfolio
Crédit Logement & the Guarantee Mechanism
Crédit Logement (CRELOG) (rated Aa3, Outlook Stable by Moody’s / AAL, Outlook
Stable by DBRS) is the leading provider of home loan guarantees in France.
The main activity of Crédit Logement is to guarantee banks’ residential home loans to individuals in
France.
Its shareholders are the major French banks offering guaranteed home loans.
The acceptance criteria include a double due diligence (by the originator and Crédit Logement itself)
when the loan is originated.
When the loan is originated, the loans are recorded on the balance sheet of the bank which also
collects the payment of the principal and the interests on the loan. After the borrower defaults on three
monthly payments, Crédit Logement may be called to stand in for the borrower.
When the borrower defaults, Crédit Logement may recover the loan out of Court (before the event of
default is declared) or in Court (after the event of default is declared). When the event of default is
declared, Crédit Logement pays off the lending bank and then replaces the bank in all its rights. It
becomes the new creditor and carries out all the necessary formalities, such as proceeding to judicial
mortgage registrations and selling off the asset.
Arrears < 60 days
Automated recovery process
handled by CFF
47 | AXA Bank Europe SCF // Investor Presentation
Arrears > 60 days but < 90 days
Amicable recovery carried out
by CFF
Arrears > 90 days
Triggers the Crédit Logement’s guarantee
within 2 months
- CFF notifies the default event to Crédit Logement.
- Crédit Logement provides the outstanding defaulted amount to
AXA Banque and manages the recovery process for itself.
AXA Banque (France) Residential Home Loans Portfolio
Performance Indicators
The net loss linked to guaranteed home
loans is negligible (0.004% of the total
guaranteed home loan portfolio as per
end-December 2014).
Performance Indicator: Saisine Crédit Logement:
-
3 months in arrear.
Confirmation from CRELOG covering the loan within 30 days.
Reimbursement of instalment in arrears / of the amount
outstanding through the Fond Mutuel de Garantie (FMG).
In case of a client’s default, AXA Banque
gets the outstanding loan amount from
Crédit Logement.
2009
2007
2011
As of end-December 2014, only one loan
for which the Credit Logement guarantee
did not cover-up the amount outstanding.
2013
2014
Year
2006
2007
2008
2009
2010
2011
2012
2013
2014
48 | AXA Bank Europe SCF // Investor Presentation
2008
2012
Amount originated
(in EUR M)
66
183
81
70
224
468
530
984
694
Saisines
(in EUR M)
0,8
2,4
0,7
1,2
1,0
4,2
3,5
6,6
0,9
Cumulated Rate of
Saisine
0,9%
1,5%
1,1%
2,3%
0,7%
1,1%
0,9%
0,6%
0,2%
2006
2010
Conclusion
Conclusion
AXA Bank Europe and AXA Banque (France) are banking entities integrated within the
AXA Group.
A very strong legal framework:
ABE SCF is a French law governed Société de Crédit Foncier (SCF) established for the purpose of
issuing Obligations Foncières.
Wholly-owned subsidiary of ABE and bankruptcy-remote from ABE.
Investors benefit from several structural enhancements providing investors with
additional comfort:
At ABE SCF level: AAA-rated OFs Series, high 19.6% OC, cash advance mechanism, very liquid
collateral;
At the RMBS level: subordination, guaranteed excess spread, Reserve Fund;
At the French Mortgage Promissory Note level: 11% OC.
CRD and UCITS-compliant, ECB eligible.
Exposure to some of the most stable housing markets in Europe providing investors
with a diversification opportunity.
50 | AXA Bank Europe SCF // Investor Presentation
Contacts
Contacts
For further information, please contact
AXA Bank Europe SCF
- Covered Bond Team
[email protected]
BNP Paribas Covered Bond Structuring
- Boudewijn Dierick
[email protected]
+32 2 678 69 46
+44 207 595 48 33
Information on the Internet
AXA Bank Europe: www.axabank.be
AXA Banque (France): www.axabanque.fr
AXA Bank Europe SCF Covered Bond program: https://www.axabank.be/nl/over-axa-bank/investorrelations-financial-information/covered-bonds
ECBC Covered Bond Label
https://www.coveredbondlabel.com/issuer/8/
52 | AXA Bank Europe SCF // Investor Presentation
Appendix
Organization
AXA Bank Europe
54 | AXA Bank Europe SCF // Investor Presentation
Organization
AXA Banque (France)
Jean Philippe Rollin
Pierre Janin
CEO
P.A of the CEO
Jean PREVOST
Human Ressources
Marie-Cécile Plessix
Head of Product
Management Member of the Management
Board
Jean-Marc Vasseux
Chief Risk Officer
Pascal Lozovoy
Chief Information
Officer
55 | AXA Bank Europe SCF // Investor Presentation
Florence Genon-Catalot
Communication
Emmanuel Ramé
Valérie BRONCARD
Chief Financial Officer -
Chief Commercial Officer -
Member of the Management
Board
Member of the Management
Board
Marc Legardeur
Nathalie Couveignes
Raphaël Krivine
Private banking
Marketing
Direct clients and
E-Banking
Robust Legislative Framework (1/2)
AXA Bank Europe SCF is monitored or regulated by multiple entities
Licensed and
regulated by
French Banking
Authorities /
French Banking
Regulator
Supervised by
Autorité de contrôle
prudentiel et de
résolution (ACPR)
Audited by
Independent
Auditors
PwC
Mazars
Monitored by
Specific Controller
Fides Audit
Rated by
Moody’s
Fitch
AXA Bank Europe SCF
Legal privilege
Obligations Foncières investors and swap counterparties on a pari passu basis rank senior to all nonprivileged creditors of AXA Bank Europe SCF.
No early redemption or acceleration of the Obligations Foncières in case of insolvency of AXA Bank
Europe SCF, no event of default under the Obligations Foncières in the Terms and Conditions.
AXA Bank Europe SCF is bankruptcy remote from AXA Bank Europe (legal prohibition of extension of
its bankruptcy to the SCF).
56 | AXA Bank Europe SCF // Investor Presentation
Robust Legislative Framework (2/2)
Articles L. 513-3 to L. 513-5 of the French Monetary and Financial Code set out the list
of eligible assets to be held (directly or indirectly) by the SCF.
Eligible Conditions
Property must be located in France or EC or EEA or in a country
benefiting from highest level of credit assessment.
AXA Bank Europe
SCF: OK
Loan to individuals can be used up to 80% LTV to finance
Obligations Foncières.
AXA Bank Europe
SCF: OK
Replacement assets must not exceed 15% of the amount of
Obligations Foncières and other resources benefiting from the
legal privilege.
Those are exposures to credit institutions benefiting from the
highest level of credit assessment.
AXA Bank Europe
SCF: OK
Guaranteed loans cannot exceed 35% of the Société de Crédit
Foncier’s total assets.
AXA Bank Europe
SCF: OK
In the Basel III context, the CRD IV and CRR extended the exemption until Dec. 31, 2017
to allow 100% RMBS of ‘own’ assets in Covered Bond pools for CRD-compliant
Covered Bonds.
57 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe SCF Covered Bond Program
Transaction Parties
AXA Bank Europe SCF – Transaction Parties
Program Arranger
BNP Paribas
Originators
AXA Bank Europe
AXA Banque (France)
Servicers
AXA Bank Europe
Crédit Foncier de France (CFF)
Guarantor of the French Residential Home Loans
Crédit Logement
SCF Financial & Asset Liability Management
AXA Bank Europe
Assistance, Global Accounting Supervision, Legal &
Tax Management
AXA Banque (France)
SCF Account Bank
BNP Paribas
Principal Paying Agent, Fiscal Agent &
Calculation Agent
BNP Paribas Securities Services
Luxembourg Listing Agent
BNP Paribas Securities Services
Specific Controller
Fides Audit
Auditors
PWC
Mazars
Permanent Dealers
BNP Paribas, Crédit Agricole CIB,
HSBC France, Merrill Lynch International,
Natixis, Société Générale
58 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe SCF Covered Bond Program
Successful placement of EUR 2.75bn with external investors.
AXA Bank Europe SCF – Outstanding Issuances
Series 1
ISIN: FR0010957670
EUR 750 MM
Issue Date: Nov. 5, 2010
Maturity Date: Nov. 5, 2020 – Extendable Maturity
(Soft Bullet)
3.5% coupon
Aaa / AAA (Moody's / Fitch)
Series 3
ISIN: FR0011027150
EUR 500 MM
Issue Date: Apr. 4, 2011
Maturity Date: Apr. 4, 2016 – Extendable Maturity
(Soft Bullet)
3,625% Coupon
Aaa / AAA (Moody’s / Fitch)
Series 5
ISIN: FR0011232404
EUR 1bn
Issue Date: Apr. 19, 2012
Maturity Date: Apr. 19, 2017 – Extendable Maturity
(Soft Bullet)
2.25% Coupon
Aaa / AAA (Moody's / Fitch)
Series 7
ISIN: FR0011322668
EUR 500 MM
Issue Date: Sept. 20, 2012
Maturity Date: Sept. 20, 2019 – Extendable Maturity
(Soft Bullet)
1.875% Coupon
Aaa / AAA (Moody's / Fitch)
59 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe SCF Covered Bond Program
Outstanding Issues – EUR 1.15bn retained within AXA.
AXA Bank Europe SCF – Outstanding Issuances
Series 8 (Retained)
ISIN: FR0011529080
EUR 750 MM
Issue Date: July 1, 2013
Maturity Date: July 25, 2023 – Extendable Maturity
(Soft Bullet)
Euribor 3M + 75bps Coupon
Callable at any time by the Issuer
Aaa / AAA (Moody’s / Fitch)
Series 9 (Purchased by AXA Banque France)
ISIN: FR0012327799
EUR 400 MM
Issue Date: November 18, 2014
Maturity Date: November 18, 2019 – Extendable
Maturity (Soft Bullet)
0.345% Coupon
Callable at any time by the Issuer
Aaa / AAA (Moody’s / Fitch)
NB: The ECB repo eligibility of AXA Bank Europe SCF Covered Bonds is not endangered under the new ECB repo rules applying from
April 1st, 2013, given that the RMBS in the cover pool were originated within the same consolidated Group and are used as a technical
tool to transfer mortgage loans form the originating entity into the cover pool.
60 | AXA Bank Europe SCF // Investor Presentation
AXA Bank Europe SCF Covered Bond Program
Cover Pool
AXA Bank Europe SCF – Cover Pool
Royal Street RS-2, Class A
ISIN: BE0002400720
EUR 1.5bn
Issue Date: November 5, 2010
Maturity Date: November 5, 2051
Replenishment Period: 7 years
(extended by 2years in 2015)
Aaa/AAA (Moody’s/Fitch)
Royal Street RS-3, Class A
ISIN: BE0002409812
EUR 2.71bn
Issue Date: December 8, 2011
Maturity Date: October 8, 2051
Replenishment Period: 5 years
Aaa/AAA (Moody’s/Fitch)
French Mortgage Promissory Note
(Not listed)
EUR 450 MM
Issue Date: November 18, 2014
Maturity Date: November 18, 2019
NR (Moody’s/Fitch)
61 | AXA Bank Europe SCF // Investor Presentation
AXA Banque (France) Residential Home Loan Portfolio
Portfolio Characteristics – Property Type / Borrower Employment / Loan Purpose (*)
62 | AXA Bank Europe SCF // Investor Presentation
(*) As of Sep. 30, 2015
AXA Banque (France) Residential Home Loan Portfolio
Portfolio Characteristics – Loan to Value (*)
Max. 100% for own-occupied
properties.
Max. 110% for properties bought
for rental purposes or when the
client already owns its main
property.
(*) Current LTV based on current value of properties.
63 | AXA Bank Europe SCF // Investor Presentation
(*) As of Sep. 30, 2015
AXA Banque (France) Residential Home Loan Portfolio
Portfolio Characteristics – Source of production
Source of production:
-
-
Tied Agents: Agents (“Agents Généraux
d’Assurance”) networks, but also AXA France’s
salaried sales-force and IFAs (“CGPI”);
Others: i.e., direct customers, AXA employees).
Nord-est: 176 Agents
Production 2014: EUR 54 M
Ouest: 222 Agents
Production 2014: EUR 57 M
Ile-de-France: 63 Agents
Production 2014: EUR 170 M
Sud-ouest: 125 Agents
Production 2014: EUR 52 M
Sud-est: 156 Agents
Production 2014: EUR 68 M
64 | AXA Bank Europe SCF // Investor Presentation
Tied agents production by region in 2014
Disclaimer & Important Notice
This material (the "Material") has been prepared by AXA Bank Europe solely for use in the program update presentation and is provided by AXA Bank Europe "as
is" without warranty or guarantee of any kind to recipients. This Material is provided for illustrative purposes only and is not intended to provide, nor should it be
interpreted as providing, any facts regarding, or guarantee or prediction or forecast of, the likelihood that investors in the securities described herein will receive
payment of principal or interest. .
This Material is strictly confidential and it is strictly prohibited to reproduce by any person and/or redistribute to any person, in whole or in part, other than its original
recipient. AXA Bank Europe and its affiliates, directors, officers, employees or agents do not accept any liability whatsoever for the action and use of this Material
by any person.
Some information contained herein and other information or material may include forward-looking statements based on current beliefs and expectations about
future events. These forward-looking statements are not guarantees of future performance and are subject to inherent risks, uncertainties and assumptions about
AXA Bank Europe . Those events are uncertain, and their outcome may differ from current expectations, which may in turn significantly affect expected results.
Actual results may differ materially from those projected or implied in these forward-looking statements. Any forward-looking statement contained in this Material
speaks as of the date of this Material, without any obligation from AXA Bank Europe to update.
The delivery of this Material shall not in any circumstance imply that the information contained herein is correct at any time subsequent to the date of this Material.
While the information set out in this Material comprises a description of certain provision of the transactions described herein (the "Transactions"), it should be read
as a summary only and it is not intended as a full statement of the provisions of the Transactions.
This Material does not constitute an offer document of any kind and shall not be considered as an invitation to invest.
Any investment decision to buy or purchase securities related to this Transactions must be based on the information contained in Royal Street compartment RS-2
and compartment RS-3 prospectuses and/or the covered bond prospectus (together, the "Prospectuses"). In particular, investors should pay particular attention to
any risk factors described in Prospectuses.
Only the contents of the covered bond prospectus are binding on AXA Bank Europe .
This Material is distributed solely for information purposes and should not be treated as 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, or undertaking of any nature, is provided by AXA
Bank Europe or its affiliates, directors, officers, employees or agents in relation to (i) the accuracy, completeness or reliability of the information contained herein
and/or (ii) the various parties in the Transactions.
This Material 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 AXA Bank Europe is under no obligations to update or keep current the information contained herein. In addition, institutions mentioned
in this Material, their affiliates, directors, officers, employees or agents may make purchases and/or sales as principal or agent or may act as market maker or
provide investment banking or other services in respect of the Transactions. Neither AXA Bank Europe nor any of its affiliates, directors, officers, employees or
agents accepts any liability whatsoever for any loss or damage of any kind arising out of the use of or reliance upon all or any part of this Material.
You should consult with your own legal, regulatory, tax, business, investment, financial and accounting advisors to the extent that you deem it necessary, and
make your own investment, hedging and trading decisions regarding the suitability of this Transactions, based upon your own judgment and advice from such
advisers as you deem necessary and not upon any view expressed in this Material.
This Material does not constitute an offer to sell or the solicitation of any offer to buy the securities described herein in any jurisdiction to any person to whom it is
unlawful to make the offer or solicitation in such jurisdiction. The distribution of this Material and the offer or sale of the securities described herein may be restricted
by law in certain jurisdictions. In particular, no action has been taken by AXA Bank Europe which would permit a public offering of any securities or distribution of
this Material in any jurisdiction where action for that purpose is required. Persons into whose possession this Material may come must inform themselves about,
and observe, any such restrictions on the distribution of this Material and the offering and sale of securities. In particular, there are restrictions on the distribution of
this Material and the offer or sale of securities in the United States and the European Economic Area (including, inter alia, the United Kingdom, Belgium and
France).
This Material does not constitute an offer of securities for sale in the United States. The securities referred to herein have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. No
public offering of securities will be made in the United States.
This Material may have been sent in an electronic form. You are reminded that documents transmitted via this medium may be altered or changed during the
process of electronic transmission and, consequently, neither AXA Bank Europe nor its affiliates, directors, officers, employees or agents accepts any liability or
responsibility whatsoever in respect of any difference between this Material distributed to you in electronic format and hard copy versions.
65 | AXA Bank Europe SCF // Investor Presentation