Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Hypotek — Debt Investor Presentation (2018)
21 slides from Nordea Bank Abp's debt investor presentation, 2018
Slide 1: Nordea Hypotek Covered Bonds
Nordea Hypotek Covered Bonds Q2 2018 Debt investor presentation
Slide 2: Table of contents
Table of contents 1. In brief 3 2. Cover pool key characteristics 6 3. Asset quality 9 4. Covered bond framework 13 5. Macro 15 6. Further information 19 2
Slide 3: 1. In brief
1. In brief 3
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q2 2018 Four aligned covered bond issuers with complementary roles Nordea Nordea Nordea Nordea Mortgage Eiendomskreditt Hypotek Kredit Bank Legislation Norwegian Swedish Danish/SDRO Finnish Cover pool assets Norwegian residential mortgages Swedish residential mortgages
Slide 5: Nordea Hypotek – overview
Nordea Hypotek – overview Q2 2018 • 100% owned subsidiary of Nordea Bank AB - the largest Nordic financial institution • Grants long-term loans to Swedish households, municipalities, municipal housing companies and corporates • All loans secured by mortgages, tenant-owner units or municipal/state gu
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q2 2018 Cover pool summary Loans in cover pool SEK 522.8bn Outstanding covered bonds SEK 312.5bn Cover pool content Mortgage loans secured by residential or commercial property. Loans to public sector Geographic distribution Throughout Sweden with concentration to urba
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q2 2018 Cover pool balance by loan category Cover pool balance by region* Commercial Public East 3% sector Sweden 2% 14% Multi-family houses North 14% Sweden Greater 9% Stockholm Single 39% family West houses Sweden Tenant 53% 16% owner units 28% Greater Gothenburg
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value* (LTV) Q2 2018 Weighted Average LTV – Unindexed 57.7% LTV buckets Nominal (SEKm) % Residential Loans >0 - <=40 % 350 628 70,49% >40 - <=50 % 57 929 11,65% >50 - <=60 % 45 389 9,12% >60 - <=70 % 33 017 6,64% >70 - <=80 % 10 469 2,10% Total 497 431 100% Weighted Average LTV - Indexed 50.
Slide 11: Loan structure
Loan structure Q2 2018 Rate type Repayment 100% 100% 90% 90% 80% 80% 70% 70% 67,9% 69,8% 71,3% 72,6% 73,8% 75,1% 60% 78,6% 78,7% 78,6% 78,4% 78,9% 79,9% 60% 50% Floating rate 50% Amortising 40% Fixed rate 40% Bullet / interest only 30% 30% 20% 20% 32,1% 30,2% 28,7% 27,4% 26,2% 24,9% 10% 21,4% 21,3%
Slide 12: Underwriting criteria
Underwriting criteria Q2 2018 Private households • Track record and income checked via UC • Always household budget ”before-after” with buffer requirement and stress test including behavioral analysis • Individual valuation of the pledged property Corporates / Municipalities • Financial analysis wit
Slide 13: 4. Covered Bond framework
4. Covered Bond framework alee foe: tly Nordea
Slide 14: Swedish covered bond framework
Swedish covered bond framework Q2 2018 • Legal framework • Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 • Registration • An issuing institution is required to maintain a register on covered bonds, the cover pool and, if applicable, derivative agreements • Limit on LTV ra
Slide 15: 5. Macro
5. Macro 15
Slide 16: Prospering Nordic economies
Prospering Nordic economies GDP development Unemployment rate Comments GDP forecast, % • The Nordics are enjoying an economic tailwind. While the Country 2015 2016 2017 2018E 2019E synchronized global recovery raise exports, the Denmark 1.6 2.0 2.2 1.8 1.7 accommodative monetary polices support dome
Slide 17: Household debt remains high, but so is private and public savings
Household debt remains high, but so is private and public savings Household debt Household savings Public balance/debt, % of GDP, 2018E Comments 10 8 • In all countries, apart from Denmark, household debt continues to rise somewhat faster than income. Meanwhile, households’ savings rates remain at h
Slide 18: House price development in the Nordics
House price development in the Nordics House prices Household’s credit growth Comments • Recent quarters have shown stabilisation in the Swedish and Norwegian housing markets, while prices continue to rise in Denmark and to some extent also in Finland • In Sweden house prices declined during H2 2017
Slide 19: 6. Further information
6. Further information alee foe: tly Nordea
Slide 20: Nordea Hypotek – outstanding benchmark covered bonds
Nordea Hypotek – outstanding benchmark covered bonds Q2 2018 Breakdown by ISIN ISIN Currency Amount (SEKm) Maturity Coupon (%) 5530 SEK 56 250 2019-06-19 2,25 5521 SEK 65 242 2020-06-17 3,25 5532 SEK 66 500 2021-05-19 1,25 5531 SEK 68 625 2022-04-08 1 5533 SEK 29 450 2023-09-20 1,25 Total 286 067 20
Slide 21: Contacts
Contacts Investor Relations Andreas Larsson Axel Malgerud Head of Debt IR Debt IR Officer Nordea Bank AB Nordea Bank AB Mobile: +46 709 70 75 55 Mobile: +46 721 41 51 50 Tel: +46 10 156 29 61 Tel: +46 10 157 13 13 andreas.larsson@nordea.com axel.malgerud@nordea.com Group Treasury & ALM Cecilia Tanne