Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (2023)
30 slides from Nordea Bank Abp's debt investor presentation, 2023
Slide 1: Nordea Kredit Covered Bonds Q4 2022 Debt Investor Presentation
Slide 2: Table of contents
Table of contents 1. Nordea covered bond operations Nordea Kredit in brief Cover pool key characteristics Asset quality Underwriting criteria Danish covered bond framework ol fn fi p> fo LV ETeige) . Links and contact ea Po a!
Slide 3: 1. Nordea covered bond operations
1. Nordea covered bond operations | tp ele: tly ° Nordea
Slide 4: Nordea covered bond issuers: Eiendomskreditt, Hypotek, Kredit, Mortgage Bank
Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank • • • 4 Confidential
Slide 5: 2. Nordea Kredit - in brief
2. Nordea Kredit - in brief | tp ele: tly e Nordea
Slide 6: Nordea Kredit — in brief
Nordea Kredit — in brief Q4 2022 * 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution * Operates as a mortgage credit institution with the main purpose of granting mortgage credit loans funded by issuing covered bonds * Founded in 1993 and supervised by the Danish FS
Slide 7: 3. Cover pool key characteristics
3. Cover pool key characteristics alee fee: tly Nordea
Slide 8: Cover pool key characteristics
Cover pool key characteristics Q4 2022 Outstanding covered bonds EUR 59.2bn Cover pool content ee Geographic distribution Throughout Denmark with concentration in urban areas Weighted average LTV 46.31% Average residential loan size EUR 205,929 Over collateralisation, OC 71% Rate type (bonds) Fixed
Slide 9: Loan portfolio
Loan portfolio Q4 2022 Market share by property category Market share! — overall 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 16.9% 16.7% 14.7% 13.9% 1.8% 11.1% 112% 19.9% 13.8% 3.8% Other Private rental © Commercial Agricultural properties housing properties properties HM 04 2021 MM 4 2022 Owner occ. dwellin
Slide 10: Loan portfolio
Loan portfolio Q4 2022 Loan portfolio by loan type re of interest-only mortgages 100% 4 54% 53.1% 90% 4 53% 4 52.8% ane 80% | oe | ne | 50.8% 70% | 50% | son | 49% | 48% | sox | 1% | 47.2% | aor, | 458% 45% | 30% | 44% 4 | O/ 4 20% 1 276% 279% 285% 308% 31.6% 1% , | 10% 4 N% 4 om 139% 29% 21% 17% 17
Slide 11: Loan portfolio
Loan portfolio Q4 2022 an balance by region ver pool balance by property category Other properties The North Denmark Region Agriculture Central Denmark Region Commercial properties 8% The Capital Region of Denmark Rental 13% Region of Southern Denmark Owner occupied dwellings Region Zealand u Nordea
Slide 12: Green Bonds
Green Bonds Q4 2022 Green lending by asset category Green lending by property category DKKm Sustainable management and living Polution Prevention natural resources (organic farms) and control, m “eran 7,000 DKKm 471 | A 266 7 6,656 20% 6,500 + 6,000 + 5,500 + 5,000 + Renewable energy, 4500 4 4394 DK
Slide 13: Financed emissions and portfolio by EPCs
Financed emissions — and portfolio by EPCs Q4 2022 Financed emissions ”) Total Total Financed Financed Total volume Coverage emission emission emission emission DKKbn (volume) tCO2 tCO2 CO2/DKKbn CO2/sqm Owner. Occ. Dwellings 255 98.8% 525,639 242,063 0.95 21 Commercial residential 38 91.1% 79,404 2
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Slide 15: Loan to value (LTV) — loans for residential and commercial properties
Loan to value (LTV) — loans for residential and commercial properties Q4 2022 Loan type Residential loans Commercial loans Weighted average LTV — indexed 54.4% 42.8% LTV buckets Nominal (DKKm) % Loans Nominal (DKKm) % Loans >0-<=40% 249,945 15% 60,824 76.5% > 40-<=50% 43,686 12.5% 10,268 13% >50-<=6
Slide 16: LTV development and arrears
0.30% 54% 53.0% 0.28% 53% -5.2pp 0.26% 52% 51.5% 0.24% 51% 50% 0.22% 48.9% 49% 0.20% 48% 0.18% 47% 46.3% 46.3% 0.16% ) 46% 0.14% 45% 44.1% 0.12% 44% 0.10% 43% 0.08% 42% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3
Slide 17: 5. Underwriting criteria
5. Underwriting criteria Habe fee: tly Nordea
Slide 18: Underwriting criteria
Underwriting criteria Private households * Behavioural score and individual credit assessment are conducted based on income information, e.g. payslips and tax information * "Before-after loan” household budgets are made and used in the assessment (based on 30 years annuity and fixed interest rate) +
Slide 19: 6. Danish covered bond framework
6. Danish covered bond framework Jia ls tly Nordea
Slide 20: Danish covered bond framework
Danish covered bond framework Legal framework * The Financial Business Act * The Mortgage-Credit Loans and Mortgage-Credit Bonds, etc. Act with several implementing executive orders + — Registration — — * Anissuing institution is required to maintain a static cover pool Payment payment . . + . . Pri
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Slide 22: Nordic economic development
Nordic economic development Nordic outlook pressured by higher inflation, interest rates and energy prices GDP development Unemployment rate 1 135 Jindex 2007Q1=100 GDP, level Index 2007Q1=100 138 9% Unemployment % " 130 p> 130 0 19 —Sweden la 425 4] =Nerwa x a. 125 9 ry oN. 5 120 Vor 120 54 re — "|
Slide 23: Nordic economies
Nordic economies Interest rates set to peak in 2023 Policy rates Public balance/debt, % of GDP, 2023E (IMF) 40 40 % Policy rates % 20.0 Norway 20.0 torwa 20236 35 — 35 175 ~- 75 3.0 re 1 Ff 30 15.0 15.0 coo e 25 f Netos 125 2s + S 20 f ‘| 20 5 10.0 10.0 q ee 18 15 g 75 7s 5 50 treland 50 10 10 Bg ]e
Slide 24: Households
Households Households pressured by high interest rates and inflation Household debt Household savings 300 16% of disposable Household debt % of disposable| 30° 20.0 4% of disposable Household saving rate 20.0 275 Jincome incomel 975 WS income WS 250 250 15.0 Sweden 15.0 Norway 225 225 12.5 = Denmark
Slide 25: Housing markets
Housing markets Higher interest rates is cooling off hot Nordic housing markets Housing prices Households’ credit growth 0 0 o 2s Index, 2007=100 Housing prices index, 2007100) 7 801 iy Households’ credit growth xy 3m moving average 25 125 225 225 10.0 10.0 200 7S 7S 1s 5.0 5.0 25 25 150 0.0 + 0.0 D
Slide 26: 8. Links and Contacts
8. Links and Contacts alee fee: tly Nordea
Slide 27: Links for more information
Links for more information Nordea Kredit Legislation + Nordea Kredit ECBC harmonised transparency templates. * Danish mortgage credit institutions are supervised by the DFSA Link: https://www.nordea.com/en/investor-relations/reports-and- (Finanstilsynet). presentations/bonds/nordea-kredit-covered-bo
Slide 28: 9. Appendix
9. Appendix
Slide 29: Green Bonds — Appendix
Green Bonds — Appendix Q4 2022 * Correction to slide 12: Formerly, the slide contained wrongly sorted data Consequently, the reported green lending volume was greater than the actual green lending volume The corrected slide 12 displays the correct green lending volumes Green Bonds 942022 Green Bonds
Slide 30: Green Bonds - pre-correction slide
Green Bonds - pre-correction slide Q4 2022 Green lending by asset category DKKm Sustainable management and living natural Polution Prevention and 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 resources (organic farms), DKkm 833 control, DKKm 271 5.4% [A 17% Rene