Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (2022)
22 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Nordea Eiendomskreditt Covered Bonds
Nordea Eiendomskreditt Covered Bonds Q4 2021 Debt investor presentation
Slide 2: Table of contents
Table of contents 1. In brief 3 2. Cover pool key characteristics 6 3. Asset quality 10 4. Covered bond framework 14 5. Macro 16 6. Further information 20 2
Slide 3: 1. In brief
1. In brief 3
Slide 4: Nordea covered bond operations
Nordea covered bond operations Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank Four aligned covered bond issuers with complementary roles Legislation Norwegian Swedish Danish Finnish Cover pool assets Norwegian residential mortgages Swedish residential mortgages primarily Da
Slide 5: Nordea Eiendomskreditt – overview
Nordea Eiendomskreditt – overview Q4 2021 • A 100% owned subsidiary of Nordea Bank Abp • The purpose of the Issuer is to acquire and provide residential mortgage loans and finance its activities mainly through issuance of covered bonds • Loans are originated by Nordea Eiendomskreditt (NE) • Collater
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q4 2021 Cover pool summary Pool notional NOK 212.6bn Outstanding Covered Bonds NOK 96.6bn Cover pool content Mortgage loans secured by Norwegian residential collateral Geographic distribution Throughout Norway with concentration to urban areas Asset distribution 100% r
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q4 2021 Cover pool balance by loan category Cover pool balance by region Summer houses 3% West 19,8% Tenant owner units 27% South 5,3% East North 61,8% 4,6% Single family Mid 8,5% houses 70% 8 Open
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan to Value (LTV)
Loan to Value (LTV) Each loan is reported in the highest bucket Q4 2021 Weighted Average LTV - Indexed 49.8% LTV buckets Nominal (NOKm) % Residential Loans >0 - <=40 % 57 906,7 27,2% >40 - <=50 % 39 251,9 18,5% >50 - <=60 % 48 592,6 22,9% >60 - <=70 % 44 020,6 20,7% >70 - <=80 % 22 828,5 10,7% Total
Slide 11: Loan structure
Loan structure Q4 2021 Rate type Repayment 100% 100% 90% 80% 80% 70% 60% 61% 61% 62% 63% 62% 60% 60% 99% 98% 98% 98% 98% 98% 50% 40% 40% 30% 20% 20% 40% 39% 39% 38% 37% 38% 1% 2% 2% 2% 2% 10% 2% 0% 0% 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 Fixed rate Floating rate Bullet / inter
Slide 12: Underwriting criteria
Underwriting criteria Q4 2021 Regulation • Mortgages is regulated in "Boliglånsforskriften" which set requirements on borrowers' debt to income, rent sensitivity, instalments and loan to value. Affordability • Customer's ability to service its commitment out of its cash flow/income is critical • Rep
Slide 13: 4. Covered Bond framework
4. Covered Bond framework alge fee: tly Nordea
Slide 14: Norwegian covered bond framework
Norwegian covered bond framework Q4 2021 • Legal framework • Financial Undertakings Act (Act. No. 17 of 10 April 2015, Norwegian: Finansforetaksloven) • Registration and independent inspector • A mortgage credit institution shall for each cover pool establish a register of loans, interest rate contr
Slide 15: 5. Macroeconomy
5. Macroeconomy alge fle tly Nordea
Slide 16: Nordic economies – resilient economies back on track
Nordic economies – resilient economies back on track GDP development Unemployment rate Comments GDP, forecasts from Economic Outlook January 2022 • After the dramatic setback in 2020 due to the COVID-19 pandemic, the Nordic economies have all recovered. However, data points to a Country 2021E 2022E
Slide 17: Nordic economies – solid public finances, well-equipped for future
Nordic economies – solid public finances, well-equipped for future Policy rates Public balance/debt, % of GDP, 2021E Comments • Norges Bank increased its policy rate in September and December last year, and is expected to make further increases this year and in 2023. The policy rate in Sweden is exp
Slide 18: Households resilient
Households resilient Household debt Household savings Comments Private consumption • Household savings increased dramatically during the pandemic, largely due to a decline in spending, but have since returned to more normal levels as consumption has increased. Despite high debt levels, Nordic househ
Slide 19: Nordic housing markets hot during pandemic
Nordic housing markets hot during pandemic Housing prices Households’ credit growth Comments • Contrary to expectations, house prices have increased to record-high levels in all the Nordic countries during the crisis. This is not least because of unprecedented expansionary fiscal and monetary policy
Slide 20: 6. Further information
6. Further information Habe foe tly Nordea
Slide 21: Covered bonds – outstanding volumes
Covered bonds – outstanding volumes Q4 2021 Breakdown by ISIN ISIN Currency Amount (NOKm) Maturity Coupon (%) NO0010758931 NOK 4 615 2022-06-15 1,08 NO0010759632 NOK 10 969 2022-06-15 FRN NO0010819717 NOK 18 550 2023-06-21 FRN NO0010843626 NOK 18 900 2024-06-19 FRN No0010873334 NOK 11 400 2025-03-19
Slide 22: Contacts
Contacts Investor Relations Maria Caneman Debt IR and ratings Mobile: +46 738 66 17 24 Tel: +46 10 156 50 19 maria.caneman@nordea.com Group Treasury Ola Bladholm Morten Keil Chief Treasury Manager Head of Covered Bonds Tel: +46 101 56 1389 Tel: +45 3333 1875 Mobile: +46 702 69 6532 Mobile: +45 6177
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