AHML Group 2013 Results - Cbonds. Emerging Markets Fixed Income

Transcription

AHML Group's Performance
in 2013
Disclaimer
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SHOULD NOT BE CONSTRUED AS, AN OFFER OR INVITATION TO SUBSCRIBE FOR, UNDERWRITE OR OTHERWISE ACQUIRE, OR A RECOMMENDATION REGARDING, ANY SECURITIES OF AHML
OR ANY MEMBER OF ITS GROUP NOR SHOULD IT OR ANY PART OF IT FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH (I) ANY CONTRACT TO PURCHASE OR SUBSCRIBE FOR
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THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS. THE WORDS "BELIEVE", "EXPECT", "ANTICIPATE", "INTEND", "PLAN" AND SIMILAR EXPRESSIONS IDENTIFY FORWARDLOOKING STATEMENTS. ALL STATEMENTS OF HISTORICAL FACTS INCLUDED IN THIS PRESENTATION INCLUDING, WITHOUT LIMITATION, THOSE REGARDING AHML'S FINANCIAL POSITION,
BUSINESS STRATEGY, PLANS AND OBJECTIVES OF MANAGEMENT FOR FUTURE OPERATIONS (INCLUDING DEVELOPMENT PLANS AND OBJECTIVES RELATED TO AHML'S SERVICES), ARE
FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE AHML'S
ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCES OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING AHML'S PRESENT AND FUTURE BUSINESS STRATEGIES
AND THE ENVIRONMENT IN WHICH AHML WILL OPERATE IN THE FUTURE. FURTHERMORE, CERTAIN FORWARD-LOOKING STATEMENTS ARE BASED ON ASSUMPTIONS OR FUTURE EVENTS
WHICH MAY NOT PROVE TO BE ACCURATE. THE FORWARD-LOOKING STATEMENTS IN THIS PRESENTATION SPEAK ONLY AS OF THE DATE OF THIS PRESENTATION.
THE INFORMATION IN THIS PRESENTATION HAS NOT BEEN INDEPENDENTLY VERIFIED. INFORMATION OTHER THAN INDICATIVE TERMS (INCLUDING MARKET DATA AND STATISTICAL
INFORMATION) HAS BEEN OBTAINED FROM VARIOUS SOURCES. ALL PROJECTIONS, VALUATIONS AND STATISTICAL ANALYSES ARE PROVIDED TO ASSIST THE RECIPIENT IN THE
EVALUATION OF MATTERS DESCRIBED HEREIN. THEY MAY BE BASED ON SUBJECTIVE ASSESSMENTS AND ASSUMPTIONS AND MAY USE ONE AMONG ALTERNATIVE METHODOLOGIES THAT
PRODUCE DIFFERENT RESULTS AND TO THE EXTENT THEY ARE BASED ON HISTORICAL INFORMATION, THEY SHOULD NOT BE RELIED UPON AS AN ACCURATE PREDICTION OF FUTURE
PERFORMANCE. NONE OF AHML, THEIR RESPECTIVE ADVISERS, CONNECTED PERSONS OR ANY OTHER PERSON ACCEPTS ANY LIABILITY WHATSOEVER FOR ANY LOSS HOWSOEVER ARISING,
DIRECTLY OR INDIRECTLY, FROM THIS PRESENTATION OR ITS CONTENTS. THE INFORMATION CONTAINED HEREIN IS SUBJECT TO CHANGE WITHOUT NOTICE.
THE INFORMATION CONTAINED HEREIN DOES NOT CONTAIN OR CONSTITUTE AN OFFER, OR AN INVITATION TO MAKE OFFERS, SELL, PURCHASE, EXCHANGE OR TRANSFER ANY SECURITIES
IN THE RUSSIAN FEDERATION OR TO OR FOR THE BENEFIT OF ANY RUSSIAN PERSON OR ANY PERSON IN THE RUSSIAN FEDERATION AND MUST NOT BE PASSED ON TO THIRD PARTIES OR
OTHERWISE BE MADE PUBLICLY AVAILABLE IN THE RUSSIAN FEDERATION.
OPEN JOINT-STOCK COMPANY “THE AGENCY
FOR HOUSING MORTGAGE LENDING” (AHML)
ESTABLISHED BY THE GOVERNMENT
OF THE RUSSIAN FEDERATION
2
AHML Group's Strategy
Current strategy: AHML Group's objectives
S
Increase affordability of housing for Russian citizens by developing the housing mortgage financing
system and improving its efficiency
Contribute to the mortgage market development, including:
M



long-term financing for at least 15% of mortgage loans
insurance and reinsurance of at least 15% of total mortgage loan value
financing to build at least 15% of total economy class housing
Through development of key businesses:
А





primary mortgage market operator (specialised refinancer)
secondary mortgage market operator and infrastructure services provider
mortgage insurance market operator
housing construction financing operator
targeted mortgage programmes operator
R
Capitalise the business through retained earnings and private funds invested in the Group's companies; maintain
AHML's sovereign credit rating to arrange longer-term cheaper borrowings; co-finance the business with private
funds
T
2018
4
Current strategy: AHML Group's businesses
AFHC
AHML Holding Company
Financing to build
at least 15% of
total economy
class housing
Development
of the secondary mortgage market
Long-term financing
for at least 15% of mortgage loans
Social Mortgage
Lending Programme
Operator
Operated by AHML
Companies to be established
as part of the Strategy
AHML
Insurance
Insurance and
reinsurance of at
least 15% of total
mortgage loan
value
AHML BANK
Refinancing of mortgage
loans worth at least
6.6% of total loan value
5
Mortgage lending development in 2013
Achievements:
1.
At 2013 year-end, every fourth housing deal (24.6%) was financed with mortgage loans, with an
estimated ~50% in housing construction. The volume of mortgage loans issued hit its record high
2.
Target number of annually issued loans, set by Presidential Decree No. 600, was exceeded:
825 thousand mortgage loans issued in 2013 vs. 815 thousand loans target to be achieved by 2018
under the Decree
3.
Target share of households able to purchase a housing standards-compliant home with their own cash
and loans, set by the Government of the Russian Federation, was achieved: according to preliminary
estimates, it amounted to 28–30% in 2013
Drawbacks:
1.
High rates: in 2013, the interest margin above the inflation level was 1.5 times higher than
the expected 3.3 percentage points
2.
Secondary mortgage market underperformed
6
Strategy amendment factors

Presidential Decree No. 600 of 7 May 2012 on reducing the bank margin to 2.2 pp and developing
lending mechanisms for targeted social groups

Expected approval of the Affordable and Comfortable Housing and Utilities for Russian Citizens state
programme and AFHC's business refocusing




Programme “Housing for Russian family”
Revised version of the Strategy for Development of Housing Mortgage Lending in Russia Until 2030
Accomplishment of objectives of primary mortgage market development
Focus on promoting affordability of social mortgage loans, including by way of developing the
secondary mortgage market (the share of social mortgage loans to reach 10% as targeted by
the shareholder)
7
AHML's priorities until 2018
1.
Develop targeted mortgage programmes to promote affordability of mortgage loans for eligible
population groups
2.
Develop the secondary mortgage market to reduce mortgage interest rates
3.
Promote affordability of housing through cutting costs by arranging purchase of engineering
infrastructure facilities with the use of collateralised bond issues
4.
Develop the rental housing market (commercial and noncommercial social rent)
5.
Ensure spin-off and privatisation of certain businesses
8
Strategic change focus. Primary mortgage market

New refinancing principles:
The market standard is refinanced through mortgage-backed securities
The social standard is refinanced through purchase of mortgage loans


New social standard offers lower interest rates for eligible groups of borrowers
Programmes to support social mortgage borrowers are to be implemented
9
Social standard. Citizens categories.
Citizens categories
Million
people
1. Citizens provided with total habitation area, citizen’s and specified members of his family’s income and citizen’s and (or) such
family members’ taxable property cost do not exceed the maximum level set up by regulatory legal act of the Russian Federation
Subject public authority – programme participant
n/a
2. Citizens residing in the accommodation that is in the prescribed manner identified inappropriate for habitation, or in the
accommodation in apartment building that is routinely recognized crashing and subject to demolition or renovation
0.4
3. Citizens having 2 or more infants and receiving Maternity (Family) capital funds
4. Citizens having 3 or more infants
5. War veterans
4.5
1.3
n/a
6. Citizens of the categories specified by the Government Decree of October 25, 2012 № 1099 "On some implementation issues of
the Federal Law" On the promotion of housing construction "in terms of ensuring the rights of certain categories of citizens to
purchase economy class housing"
n/a
6.1. Citizens registered as in need of accommodation, as well as citizens recognized as needing accommodation, but not
registered
6.2. State and municipal programmes participants
6.3. Citizens having 1 or more children with both parents or one parent in one parent family under 35
6.4. Participants of savings and mortgage system of housing for servicemen
6.5. State and municipal servicemen
6.6. Budgetary institutions employees
6.7. Dominant local employer workers
6.8. Military-industrial complex employees
6.9. State science centers employees
6.10. Employees of the state academies of sciences and their subordinate organizations
6.11. Employees of scientific organizations or scientific service organizations that carry out scientific, technical, innovative
activities, experimental development, testing, and training in priority areas of science, technology and engineering in the Russian
Federation, approved by Presidential Decree of July 7, 2011 N 899
14.1
0.63
7.5
0.153
1.0
7.2
n/a
2.0
n/a
n/a
n/a
Among the groups selected intersections are possible.
10
Target margin over CPI (pp) for mortgages to be refinanced by
AHML under new social standard
5,0
4,5
4,0
3,5
3,0
2,5
2,0
4.30
3.80
1,5
3.00
1,0
2.20
2.20
2017
2018
0,5
0,0
2014
2015
2016
11
Strategic change focus. Secondary mortgage market

Services and financing to support multi-originator securitisation of the following assets:
mortgage loans under AHML's standards
mortgage loans under other standards approved by AHML
mortgage loans under AHML's social standard
rental agreements under AFHC's standard
supply agreements under standards approved by AFHC



Purchase of mortgage-backed securities
Guarantees and insurance
Provision of access to bridge financing through the Bank of Russia platform to market
players
12
AHML Group's services
AHML Group provides market players with the following paid services:


establishment and management of joint operations of a group of originators

structuring and streamlining of issues, including by way of mortgage insurance and other forms of
credit support







arrangement of issue placements and expansion of the investor base
pooling and acquisition of assets to be put on the balance sheet of a dedicated mortgage agent
(or special-purpose project finance vehicle) on its behalf and at its expense
supporting services (Master Servicer)
guarantees of timely provision of mortgage collateral
guarantees of collateralised bond placements
guarantees of the best prices for infrastructure services (legal, depository, etc.)
provision of the right to use standard securitisation contracts
compliance review and credit quality assessment
13
From individual deals to collective transactions
2006
Mortgage-backed bonds
2012
+ Mortgage participation
certificates
2013
+ Mortgage-backed
bonds, multi-originator
platform
Developing new technologies and funding instruments
Improving securities infrastructure
Enhancing mortgage refinancing tools
14
Strategic change focus. Housing market
Financing of economy class housing construction, rental housing, social and engineering
infrastructure

Transition from banks support in terms of construction financing to programmes financing technical
and social infrastructure construction

Creating the environment and methods for complex project financing in integrated territorial
development projects

Formation of new legal entity activity standards - special-purpose project finance vehicles (SPFV) and
financial companies for collateralised bonds market development


Lease is a new driver of housing construction. Rental housing market development.
AHML is an investor in senior bond tranches
15
Spin-off and privatisation of assets by 2018

Establishment of AHML Bank to issue and purchase mortgage loans on market terms and
subsequently refinance them for profit making

Establishment of AHML Service to spin off the business of supporting mortgage loans, providing
securitisation backup servicing and other services (collateral management, ownership arrangement,
etc.)

Establishment of AHML Realty to spin off the business of selling collateralised properties and
providing property management services

Privatisation of AHML Insurance
16
AHML Group in perspective
AHML Insurance
AFHC
Financing of housing
construction
1.
Housing
Construction
(37%)
Financing of housing
infrastructure. Issue of
collateralised bonds.
Special-purpose
project finance
vehicle (SPPFV)
3.
New social
standard
• Lender financial risks
insurance (reinsurance)
• Borrower liability
insurance (reinsurance)
• Developer liability
reinsurance
Market activities
AHML
Group
Support housing
construction
Energy supply
Gas supply
Water supply
Heating supply
2.
Reserves
and
mortgage
portfolio by
2015
Stocks of
subsidiaries
and mutual
funds
shares
Privatization of
business (in
whole or in
certain parts)
Secondary
market
AHML Bank
Mortgages purchased on
market terms put on
balance sheet
AHML Service
Infrastructure services
Guarantees of
purchasing housing
Tenements mortgage
(“Rental housing”)
AHML Realty
Primary market activities
Secondary market activities
New social standard
• Senior tranches and MBS
guarantees
• Provision of liquidity through the
Bank of Russia platform
• Provision of bridge loans to pool
mortgages
AHML dividends
Profit from market portfolio
Reserve to support borrowers
incase of a crisis
17
Business Overview
Key businesses



Refinancing mortgage loans
Lending to banks for housing construction (under Stimulus programme)
MBS purchase and bridge loans
Key businesses, % of off-balance sheet
liabilities
(as at 31 December 2013)
Key businesses, % of total assets
8%
Mortgage loan refinancing
31%
18%
MBS purchase and bridge loans
11%
Mortgage loans refinancing
agreement
19%
63%
1%
Agreement on purchasing mortgagebacked bonds
Guarantees provided
Other assets
49%
Funding and refinancing agreement
Lending to banks for housing
construction (under Stimulus
programme)
Total assets: RUB 324.0bn
Total off-balance sheet liabilities : RUB 70.5bn
Source: AHML's IFRS statements
19
Mortgage-backed securities (MBS) purchase programme



Under its programmes, AHML purchases MBS senior tranches rated no lower than ВВВ- (Fitch/S&P) or Ваа3 (Moody's),
or secured by AHML
Under the existing MBS purchase programmes, AHML is willing to provide bridge loans to pool mortgages and close
securitisation deals
AHML's guarantee of purchase of MBS senior tranches helps mitigate interest rate risks for mortgage market players
Statutory risk mitigants for MBS:



LTV capped at 80%
CDOs prohibited, with only MBS allowed
Full disclosure on a monthly basis
Bridge loans provided, RUB bn
14,00
40,00
13.00
34.16
35,00
12,00
10,00
MBS purchase volumes, RUB bn
9.75
25,00
8,00
20,00
6,00
27.65
30,00
9.67
4.88
20.32
15.31
15,00
4,00
10,00
2,00
5,00
0,00
0,00
выдано, млрд руб.
Bridge loans
provided, RUB bn
31.12.2012
остаток задолженности, млрд руб.
Bridge loans outstanding, RUB bn
выкуплено ИЦБ, млрд руб.
MBS purchased, RUB bn
31.12.2012
31.12.2013
контрактные
MBS purchaseобязательства,
contractual млрд
obligations, RUBруб.
bn
31.12.2013
20
Mortgage assets securitisation deals
200
160
120
80
40
0
2006
2007
2008
2009
2010
2011
2012
10
26
25
0
0
0
0
0
Domestic balance sheet transactions, RUB bn
0
2
0
15
0
15
11
33
Domestic off-balance sheet transactions of AHML,
RUB bn
0
3
22
0
14
20
18
22
Domestic off-balance sheet transactions of other
originators, RUB bn
3
0
0
17
0
11
39
86
Mortgage participation certificates, RUB bn
0
0
0
0
0
0
1
13
Cross-border transactions, RUB bn
2013
21
Mortgage and financial portfolio
Mortgage portfolio risk
Mortgage portfolio risk composition shows the share
of high-risk assets in the mortgage portfolio
depending on product type, repayment schedule
parameters, current LTV range, (non)existing
current/historical overdue payments and/or loan
restructuring, mortgage insurance, etc.
Financial portfolio risk
Financial portfolio risk composition shows the share
of high-risk assets vs. capital based on the
counterparty's internal credit rating, loan or deposit
term, collateral quality (if applicable), etc.
60%
40%
35%
30%
31.12.2012
37.51%
31.95%
31.12.2013
32.08%
29.91%
15%
10%
5%
50%
31.12.2013
46.12%
40%
25%
20%
31.12.2012
50.85%
30%
17.13%
20%
12.23%
9.29% 7.99%
26.18%
16.83%
11.71%
5.32% 4.77% 6.28% 5.55%
10%
0%
19.03%
11.66%
12.18%
3.57%
1.64%
0.00% 0.23%
0%
22
Mortgage portfolio (I)
Mortgage portfolio breakdown
Mortgage portfolio breakdown
as at
31 December
2012
Indicators
Mortgage portfolio value,
6%
RUB'000
Mortgage portfolio volume,
number of loans
29%
Weighted average interest rate,
%
65%
Weighted average term to
maturity, months
Стандарт
(в т.ч.
Новостройка)
Standard Loans
(incl.
Newly Built
Военная
ипотека
Military Mortgage
House)
Standard Loans (incl.
Newly Built House)
Value as at 31 December 2012
RUB'000
205,024,869
198,624
207,915
11.39
11.25
148
146
53.65
51.55
Value as at 31 December 2013
%
RUB'000
%
132,243,914.12
70.70%
132,337,121.92
64.55%
45,712,416.19
24.44%
60,109,049.47
29.32%
9,090,944.06
4.86%
12,578,697.52
6.14%
187,047,274.37
100.00%
205,024,868.91
100.00%
Other loans
Total
Weighted average current LTV
ratio, %
187,047,274
loans
Mortgage programme
Military Mortgage
Иное
Other
as at
31 December
2013
Source: AHML's management accounts
23
Mortgage portfolio (II)
NPL share
250
9.34%
8.91%
7.18%
200
150
10%
8.31%
6.82%
8%
5.55%
7.10%
5.03%
4.97%
100
4.74%
50
30.06.2010
30.06.2010
31.12.2010
31.12.2010
30.06.2011
30.06.2011
3.36%
31.12.2011
31.12.2011
Объем
АИЖК
AHMLпортфеля
portfolio volume
250
10.94%
8.76%
2.50%
2.47%
2.33%
2.26%
30.06.2012
30.06.2012
31.12.2012
31.12.2012
31.03.2013
31.03.2013
30.06.2013
30.06.2013
30.09.2013
30.09.2013
31.12.2013
31.12.2013
0%
Просрочка
90+ по
данным
ЦБ РФ
NPL 90+ (Bank
of Russia
data)
NPL evolution
9.98%
9.44%
12%
8.30%
10%
7.78%
6.28%
8.49%
6%
2%
2.52%
NPL 90+ (AHML
Просрочка
90+ вportfolio)
портфеле АИЖК
200
150
4.82%
4%
4.06%
0
11.22%
4.83%
6.25%
8.29%
100
7.64%
6.61%
6.21%
50
5.07%
5.93%
4.52%
5.91%
5.86%
5.55%
8%
6%
4%
4.38%
4.30%
4.35%
-
2%
0%
Объем
АИЖК
AHMLпортфеля
portfolio volume
Просрочка
NPL 30+ 30+
Просрочка
NPL 90+ 90+
Просрочка
NPL 180+ 180+
Source: AHML's IFRS statements, www.cbr.ru
24
Mortgage portfolio (III)
Early default rate
Early default rate shows the share of new
mortgages refinanced under various AHML
programmes defaulting (90+ days overdue)
within the first year
Mortgage portfolio composition by LTV
Early default rate shows the share of new
mortgages refinanced under various AHML
programmes defaulting (90+ days overdue)
within the first year
8%
7.02%
7%
6.93%
6.14%
41,4%
6%
5.92%
49.1%
5.21%
5%
13,4%
4%
2.85%
1.91%
2%
1%
0%
28.9%
45,2%
3%
0.85%
1.73%
0.52% 0.65%
0.61%
22.0%
1.76%
0.97%
0.41%
0.98%
0.83%
0.45%
0.44%
0.62%
Current LTV
Текущий
К/З 0–50
0-50
Текущий
CurrentК/З
LTV50-70
50–70
СWith
ипотечным
страхованием
mortgage
insurance
Кредиты
для
военнослужащих
Loans for
the
military
Высокорисковые
High-risk loans кредиты
Current
CurrentLTV
LTV70+
70+
25
AHML's Subsidiaries
Subsidiaries (AFHC)
Agency for Financing of Housing Construction (former ARHML)
ARHML was established in February 2009 in line with the initiative of the Russian Government to
support distressed mortgage borrowers
On 20 December 2012, AHML's Supervisory Board decided to focus ARHML's business on
stimulation of bank lending for housing construction, development of rental housing, issuance of
guarantees to buy unsold housing, management and selling of residential housing, and other types of
activities non-core to AHML's mortgage market development objectives
On 16 July 2013, ARHML was renamed Agency for Financing of Housing Construction (AFHC)
AFHC's focus areas for 2013





promote bank lending for housing construction
develop rental housing
provide guarantees of purchasing unsold housing
manage and sell housing property on AHML's/AFHC's balance sheets
other efforts not directly related to AHML's consumer mortgage lending development
27
AFHC's objectives for 2013




Service the AFHC portfolio put on the balance sheet in 2009–2012

Improve the quality of property management in relation to:
Enhance housing construction through facilitating fund raising for housing construction projects
Focus AFHC's programmes and products on economy class housing construction
Provide fund raising opportunities for rental housing projects to contribute to market
development



property pledged as collateral for obligations of mortgage borrowers
property foreclosed in accordance with the laws of the Russian Federation
property put on the balance sheets of AHML/AFHC or other lenders as part of property
management services
28
Stimulus programme results
Key results of the Stimulus programme






The Stimulus programme was launched in 2010 to support the affordable housing construction
market
AHML Group issues special-purpose loans to banks to finance construction projects
As at 31 December 2013, under its Stimulus programme, AHML issued loans to 69 banks for a total
of RUB 52.1bn
As at 31 December 2013, outstanding loans issued by AHML Group to banks totalled RUB 27.0bn
The programme now covers housing construction projects to be commissioned before
31 December 2015
In June 2013, AHML's Supervisory Board approved the Economy Class Stimulus
subprogramme of the Stimulus programme aimed at promoting economy class housing construction.
Under the subprogramme, AFHC provides direct guarantees of purchasing unsold housing from
developers. This subprogramme covers projects to be commissioned before 31 December 2017
Stimulus programme results in 2013




Agreements signed for a total of RUB 27.3bn in obligations
Loans issued for a total of RUB 24.65bn (granted without re-issue: RUB 18.5bn)
Total floor area to be constructed under agreements: 2.77m sq m
Actual amount of loans provided by banks for housing construction projects: RUB 36bn
29
Rental Housing product
AHFC's objectives
1. Develop a standard for issuing, servicing and
refinancing mortgage certificates of legal entities
2.
Rental Housing product implementation
AFHC
Establish a scalable technology to fund housing
construction based on public-private partnership
principles
4 agreements on construction projects signed
(Novosibirsk Region, Nizhny Novgorod Region, Penza
Region, Republic of Altai) for a total of RUB 275m,
out of them RUB 151m refinanced

17 cooperation agreements on rental housing
development signed with regional
administrations and major employers

83 projects on rental housing construction
underway
Special-purpose vehicle (controlled
by a regional operator or entity)
Construction
funding
Rent

Loan
repayment
Loan
Results as at 31 December 2013
 6 rental houses with 253 apartments built
(Novosibirsk Region, Nizhny Novgorod Region,
Republic of Altai)
Housing
Employees
of the entity
Transfer
of housing
Rental housing
construction
Partial
compensation
of rent
(OPTIONAL)
Administration/
Entity
30
Subsidiaries (AHML Insurance)
Insurance Company AHML (AHML Insurance) is a subsidiary of OJSC AHML (AHML), established in 2010 to
develop mortgage insurance in Russia in line with AHML's mortgage insurance development programme and the
Strategy for Development of Housing Mortgage Lending in Russia Until 2030.
Charter сapital: RUB 3bn
Shareholders and their shares:
 AHML – 99.98%
 Association of Russian Banks – 0.017%
 National Insurance Guild (Non-Profit Partnership) – 0.0017%
AHML Insurance's licences:
 reinsurance (licenсe P No. 4210 77 of 20 May 2010)
 lender financial risks insurance (licence S No. 4210 77 of 27 November 2012)
 borrower liability insurance (licence S No. 4210 77 of 27 November 2012)
AHML Insurance's main objectives: developing mortgage insurance in Russia and mitigating
(reallocating) risks of all mortgage market participants
To achieve these objectives, AHML Insurance:
 promotes amendment of the legal and regulatory framework
 develops and implements standardised mortgage insurance documentation
 facilitates the Russian mortgage insurance market development by preparing and implementing mortgage
insurance standards, norms and procedures
 accumulates and analyses mortgage lending and insurance market statistical data in order to improve
the underwriting requirements and validate reinsurance rates
31
Mortgage insurance market segmentation by number of insured
loans
Number of mortgage insurance contracts in Russia
12000
12,000
10,000
10000
3,357
8000
8,000
3,860
6000
6,000
2,822
4000
4,000
6,641
4,192
2,000
2000
4,824
424
304
0
2010
2011
2012
2013
Количество застрахованных кредитов,
Number
выданных
of AHML-compliant
не по стандартам
insured
АИЖК,
mortgage
шт.loans
Number of выданных
non-AHML compliant
insuredАИЖК,
mortgage
loans
Количество застрахованных кредитов/займов,
по стандартам
шт.
In addition to insurance at issuance of mortgage loans, 1,777 loans were insured in 2013 as part
of the Transcapitalbank's mortgage asset securitisation for a total of RUB 4.5bn.
In 2012, Housing Finance Bank's mortgage pool was insured as part of Programme 1, against
guarantees provided by AHML: 161 loans for a total of RUB 0.02bn.
In 2012, AHML‘s mortgage portfolio on the balance sheet was insured: 5,197 loans for a total of
RUB 5.2bn.
32
Mortgage insurance market segmentation by value of insured
loans
Value of insured mortgage loans issued
in 2010–2013, RUBm
Mortgage insurance market segmentation
by value of insured loans in 2010–2013
25000
25,000
20000
20,000
Value ипотечного
of non-AHML
Объем
compliant insured
кредитования
не поmortgage
стандартам
АИЖК
с
loans, RUBm
(at issuance)
ипотечным страхованием,
млн руб. (на этапе выдачи)
15,000
15000
14,305
10,000
10000
9,068
5,000
14 830
14,830
7,507
5000
0
778
411
3,672
2010
2011
5,401
5,343
2012
2013
31,660
31 660
Объем
с ипотечным
Value ofипотечного
non-AHML compliant
insured mortgage
loans, RUBmАИЖК
(at issuance)
страхованием, млн руб. (на этапе выдачи)
Объем
Value ипотечного
of AHML-compliant
по loans,
insured mortgage
стандартам АИЖК с
RUBm (at issuance)
ипотечным страхованием,
млн руб. (на этапе выдачи)
Объем
неloans,
АИЖК с ипотечным
Value ofипотечного
AHML-compliant
insured mortgage
RUBm (at issuance)
страхованием, млн руб. (на этапе выдачи)
At 2013 year-end, 107 banks and 35 non-credit institutions in 74 Russian regions offered borrower
liability insurance and lender financial risks insurance (mortgage insurance).
As at 1 January 2014, borrower liability insurance contracts were offered by 33 insurance companies.
In 2013, 9,998 mortgage loans were issued for a total of RUB 19.649bn (insurance at loan issuance).
Between 2010 and 2013, 26,424 insured mortgage loans were issued for a total of RUB 46,189bn,
of which 34% by number and 32% by value were AHML-compliant.
33
Financial Performance
Asset and mortgage portfolio composition
Asset composition evolution as at 31
December 2013, RUB bn
350
300
250
200
6,12
7,43
5,31
24,83
7,29
15,21
59,46
6,58
18,82
37,38
38,60
28,01
5,84
33,20
45,79
150
100
50
Other
0,13
0,73
0,13
Financing of banks under the Stimulus
programme
0,05
Financing under AHML MBS purchase
programmes
0,99
Investment securities
Mortgage participation certificates
4,88
Cash and equivalents
Mortgage-backed securities
Loans issued
156,82
187,05
2011
2012
Lending to banks against mortgage loans
205,02
Due from credit
institutions
Mortgages
0
Financing under the Rental Housing programme
26,86
Discounted bills
2013
Asset quality

Loans issued as at 31 December 2013,
RUB bn
The last two years saw a growing share of low-risk loans
under the Military Mortgage programme in the total
mortgage portfolio

AHML increased the volume of loans provided under the
Stimulus programme and bridge loans issued under the
Agency’s MBS purchase programmes

Investment securities mostly include investment grade or
AHML-guaranteed senior tranches of MBS
Mortgage portfolio composition as at
31 December 2013
6%
29%
65%
Стандарт
т.ч. Новостройка)
Standard(вLoans
(incl. Newly Built
House)
Военная
Military ипотека
Mortgage
Иное
Other
loans
35
Liabilities composition and funding strategy
Liabilities composition evolution, RUB bn
350
300
250
43,9
36,4
200
100
50
153,6
4,3
2,4
1,6
114,0
121,0
127,0
2011
2012
2013
Bonds issued
Other liabilities
2
Equity
Bank loans
128,5
114,2
150
33
41,7
Liabilities composition as at
31 December 2013, RUB bn
5
Corporate government-guaranteed
bonds
Eurobonds
36
127
5
Other borrowed funds
15
101
0
Exchange-traded bonds
MBS
Equity
Bank loans
Debt-to-equity ratio evolution
AHML's bonds repayment schedule
as at 31 December 2013, RUB bn
40
1,6
30
1,5x
1,5
1,4x
15,0
20
29,2
5,0
10
8,5
8,0
10,0
13,7
13,1
13,0
11,9
12,5
9,7
0
12,9
5,7
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+
Government-guaranteed bonds
Eurobonds
1,4
1,3x
1,3
1,2
2011
2013
2012
36
Profitability and efficiency
Cost to Income3
Interest income by asset classes, RUB bn
35
30
25
20
26,52%
2,46
3,02
4,3
1,18
2,01
5,12
Loans issued
15
10
22,60%
Securities portfolio
Due from credit
institutions
21,88
19,31
5
Mortgages
2012
0
2012
2013
3
7,1%
2,9%
General and administrative expenses / Net interest income
Net interest margin (NIM)⁴
ROA¹ and ROE²
ROA
ROE
2013
6,3%
5,26%
5,12%
2012
2013
2,5%
2012
2013
ROA for AHML Group shrunk down to 2.5% throughout 2013 because of
average assets growth by 10% with net profit having declined by 6%
ROE for AHML Group decreased to 6.3% throughout 2013 due to net profit
decline by 6% with equity growth by 6% at the same time
¹ Net profit/Average assets
² Net profit/ Average equity
Average annual indicator = (beginning + end)/2
NIM declined due to a smaller share of assets funded by equity (initially high
as a result of capital injections in 2008–2009)
⁴Net interest income/average assets generating interest income. Average
annual indicator = (beginning of the year+ year end)/2
37
Financial highlights
RUB bn
Balance sheet
2013
2012
5.8
6.6
45.8
38.59
Mortgage certificates
205.0
187.0
Total assets
324.0
295.8
Bonds issued
153.6
128.5
Equity
127.0
121.0
Net interest income
15.6
14.6
Operating income
13.1
14.2
(Provisioning)/Reversal
(0.7)
(0.3)
G&A
(3.5)
(3.9)
7.8
8.3
5.12
5.26
Cost/Income Ratio
22.60
26.52
Equity/Assets
40.02
41.61
ROE
6.28
7.09
ROA
2.51
2.95
Cash and cash equivalents
Due from credit institutions
Income statement
Net income
Key ratios
Net interest margin (NIM)
⁴ Key indicators were calculated using average annual indicators = (beginning + end) / 2
38
Funding Sources
Parameters of AHML's bond issues outstanding
as at 31 December 2013 (I)
Years to maturity
Duration,
years
15.07.2014
0.2
0.2
04.10.2006
15.07.2016
2.2
1.6
04.10.2006
15.06.2018
4.1
3.2
7.49%
08.02.2007
15.02.2017
2.8
1.7
6.000
8.05%
11.12.2007
15.11.2018
4.6
1.8
А11
10.000
8.20%
31.01.2008
15.09.2020
6.4
2.7
А13
7.000
15.04.2018
4.0
0.5**
7.000
27.08.2009
15.05.2023
9.1
0.1**
А15
7.000
Bank of Russia
refinancing rate
+ 2.5%
27.08.2009
А14
27.08.2009
15.09.2028
14.4
0.4**
А16
10.000
8.25%
30.06.2010
15.09.2021
7.4
4.0
А17
8.000
9.05%
09.02.2011
15.04.2022
8.0
4.7
А18
7.000
8.00%
05.04.2011
15.07.2023
9.2
1.8**
А19
6.000
7.70%
19.04.2011
15.11.2024
10.6
1.0**
А20
5.000
8.60%
28.12.2010
15.12.2027
13.6
7.7
А21
15.000
8.80%
09.04.2012
15.02.2020
5.8
2.6
А22
15.000
7.70%*
29.03.2012
15.07.2024
10.2
-
А23
14.000
7.94%*
07.12.2011
15.12.2029
15.7
-
А24
6.000
8.25%
05.12.2013
01.11.2022
8.5
1.4
А25
6.000
7.75%
29.04.2013
01.10.2026
12.4
2.6
Series
Volume, RUB bn
Coupon rate, % p.a. Placement date Maturity date
А6
2.500
7.40%
06.12.2005
А7
4.000
7.68%
А8
5.000
7.63%
А9
5.000
А10
* Current coupon rate
** Duration to the last known coupon payment date
40
Parameters of AHML's bond issues outstanding
as at 31 December 2013 (II)
Series
Volume,
RUB bn
Coupon rate, % p.a.
Placement
date
Maturity date
Years to maturity
Duration,
years
А26
6.000
6.65%*
26.06.2013
01.11.2029
15.5
-
А27
4.000
6.65%*
13.06.2013
01.11.2032
18.5
-
BO-01
5.000
160.50
7.60%
25.09.2013
21.09.2016
2.4
2.2
Total
* Current coupon rate
** Duration to the last known coupon payment date
Eurobonds
Issue
Volume, RUB bn
Coupon rate, % p.a.
Form
Placement date
Maturity date
Placement
format
AHML, 2018
RUB 15bn
7.75%
LPN
13.02.2013
13.02.2018
Reg S/144 A
41
Planned bond issues 31 December 2013
Series
Volume, RUB bn
Maturity date
А28
4.000
15.01.2029
А29
5.000
15.10.2030
А30
6.000
01.03.2033
А31
7.000
01.02.2034
BO-02
5.000
up to 3 years
BO-03
5.000
up to 3 years
BO-04
5.000
up to 3 years
BO-05
5.000
up to 3 years
BO-06
5.000
up to 3 years
BO-07
5.000
up to 3 years
BO-08
5.000
up to 3 years
Government-guaranteed bonds
42
Basic parameters of AHML's MBS issues (I)
Bonds
Face value as at
the registration
date, RUB
Current face
value, RUB
Current
Issue structure Credit support of
rating
(initial/
the issue
(Moody’s /
current)
(initial/current)
S&P)
AHML
public
offer
Coupon,
%
Lombard
list of the
AHML
Bank of
guarantee
Russia
Listing
(Moscow
Exchange)
1. Issuer: CJSC First Mortgage Agent of AHML (FMA), date of state registration 19.04.2007, legal final maturity 15.02.2039
Class A
Class B
2,900,000,000
264,000,000
Class B
130,794,000
59,943,000 88.0% / 13.2%
264,000,000
8.0% / 58.1%
130,794,000
16.0% / 137.5%
8.0% / 79.5%
(inc. junior
4.0% / 28.8%
tranches, reserve)
А3
Bаa3
-
6.94
9.5
+
-
-
Unlisted
-
-
-
-
-
-
-
2. Issuer: CJSC Second Mortgage Agent of AHML (SMA), date of state registration 27.11.2007, legal final maturity 15.03.2040
Class A
Class B
9,440,000,000
590,300,000
Class B
697,317,000
1,102,875,200 88.0% / 46.1%
590,300,000
5.5% / 24.7%
697,317,000
20.0% / 89.8%
14.5% / 65.1%
(inc. junior
6.5% / 29.2%
tranches, reserve)
A3
Bаa3
-
8.5/9.5*
9.5/10.5*
+
-
-
Unlisted
Unlisted
-
-
-
-
-
-
3. Issuer: CJSC Mortgage Agent of AHML 2008-1 (2008-1), date of state registration 05.11.2008, legal final maturity 20.02.2041
Class A
7,930,000,000
Class B
3,401,828,000
191,192,300 70.0% / 5.3%
36.7% / 116.4%
(inc. junior
3,401,828,000 30.0% / 94.7% tranche, reserve,
AHML financial aid)
A3
15.12.2014
10.5
+
-
Unlisted
-
-
-
-
-
-
Class A1
Class A2
6,096,000,000
6,096,000,000
Class B
1,354,706,000
Redeemed 45.0% / 0.0%
4,267,504,800 45.0% / 75.9%
20.7% / n/a
20.7% / 36.1%
(inc. junior
1,354,706,000 10.0% / 24.1% tranche, reserve,
AHML financial aid)
n/a
A3
n/a
23.03.2020
n/a
9
n/a
+
n/a
-
n/a
Unlisted
-
-
-
-
-
-
* Step-up from the 29th coupon (starting 16.03.2015)
43
Basic parameters of AHML's MBS issues (II)
Bonds
Face value as at
the registration
date, RUB
Current face
value, RUB
Current
Issue structure Credit support of
rating
(initial/
the issue
(Moody’s /
current)
(initial/current)
S&P)
AHML
public
offer
Lombard
Coupon, list of the
Listing
AHML
%
Bank of
(Moscow
guarantee
Russia
Exchange)
Class A1
Class A2
7,457,000,000
7,457,000,000
Class B
1,657,195,000
0 45.0% / 0.0%
7,366,173,740 45.0% / 81.6%
22.7% / 32.4%
A3/BBB 15.04.2015
22.7% / 32.4%
Baa1/BBB- 15.04.2020
(inc. junior
1,657,195,000 10.0% / 18.4% tranche, reserve,
AHML financial aid)
8.25
9
+
+
-
Unlisted
Unlisted
-
-
-
-
Class A1
Class A2
5,932,000,000
5,932,000,000
Class B
1,318,781,000
2,061,488,640 45.0% / 22.1% 22.7% / 34.0%
5,932,000,000 45.0% / 63.7% 22.7% / 34.0%
(inc. junior
1,318,781,000 10.0% / 14.2% tranche, reserve,
AHML financial aid)
A3
Baa1
23.11.2015
-
9
5.5/9**
+
-
-
Unlisted
Unlisted
-
-
-
-
-
-
Class A1
Class A2
Class B
8,916,000,000
4,978,000,000
967,031,000
7,646,807,400 60.0% / 56.3%
4,978,000,000 33.5% / 36.6%
967,031,000
6.5% / 7.1%
7.2% / 9.1%
7.2% / 9.1%
(inc. junior
tranche, reserve)
Baa1
Baa1
09.04.2018
-
8.5
3/9***
+
-
+
+
Unlisted
Unlisted
-
-
-
-
-
-
Class A1
Class A2
Class A3
Class B
6,323,000,000
6,323,000,000
6,323,000,000
669,571,000
6,323,000,000 32.2% / 32.2%
6,323,000,000 32.2% / 32.2%
6,323,000,000 32.2% / 32.2%
669,571,000
3.4% / 3.4%
4.1% / 4.1%
4.1% / 4.1%
4.1% / 4.1%
(inc. junior
tranche, reserve)
-
-
8.5
8.5
3/8.5****
-
+
+
+
Unlisted
Unlisted
Unlisted
-
-
-
-
-
-
** Step-up from the 10th coupon (starting 23.10.2014)
*** Step-up from the 8th coupon (starting 10.06.2015)
**** Step-up from the 10th coupon (starting 12.06.2016)
44
AHML mortgage agents' MBS issues in 2014
Bonds
Current face value
of the issue, RUB
Current face value of
bonds for sale, RUB
Credit support in % of
Current rating
current value of all tranches
(Moody’s /
S&P)
Duration,
years
Public offer
AHML
Coupon, %
%
15.04.2020
9
2.1
Baa1
-
5.5/9*
2.6
1. Issuer: CJSC Mortgage Agent of AHML 2011-2 (2011-2), date of state registration 23.06.2011
Class A2
7,457,000,000
3,809,527,830
32.4% (inc. junior tranche,
reserve, AHML financial aid)
Baa1/BBB-
2. Issuer: CJSC Mortgage Agent of AHML 2012-1 (2011-2), date of state registration 28.06.2012
Class A2
5,932,000,000
5,932,000,000
30.0% (inc. junior tranche,
reserve, AHML financial aid)
3. Issuer: CJSC Mortgage Agent of AHML 2014-1, date of state registration 27.02.2014
Class A1
6,323,000,000
6,323,000,000
4.1% (junior tranche, reserve)
Additional collateral – AHML
guarantee
-
-
8.5
0.8
Class A2
6,323,000,000
6,323,000,000
4.1% (junior tranche, reserve)
Additional collateral – AHML
guarantee
-
-
8.5
2.2
* Step-up from the 10th coupon (starting 23.10.2014)
45
Contacts
Agency for Housing Mortgage Lending
Address: 69 Novocheremushkinskaya St., Moscow 117418
Tel. +7 495 775 47 40
Fax +7 495 775 47 41
www.ahml.ru
www.rosipoteka.ru
Reuters: 0#RUCORP=AHML
Bloomberg: AHML (GO)
For more information please contact us at:
ir@ahml.ru
46

AHML Group 2013 Results - Cbonds. Emerging Markets Fixed Income

Transcription

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