Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Hypotek — Debt Investor Presentation (2021)
22 slides from Nordea Bank Abp's debt investor presentation, 2021
Slide 1: Nordea Hypotek Covered Bonds
Nordea Hypotek Covered Bonds Q2 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 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 2021 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 prim
Slide 5: Nordea Hypotek – overview
Nordea Hypotek – overview Q2 2021 • 100% owned subsidiary of Nordea Bank Abp - 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 g
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q2 2021 Cover pool summary Loans in cover pool SEK 616.4bn Outstanding covered bonds SEK 347.9bn 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 2021 Cover pool balance by loan category Cover pool balance by region* Multi-family Commercial houses 4% Public East 3% Sweden sector 2% 14 % North Tenant owner Sweden Greater associations 9% Stockholm 11 % Single 38 % family houses West 51 % Sweden Tenant 15 %
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value (LTV)* Q2 2021 Weighted Average LTV – Unindexed 56.9% LTV buckets Nominal (SEKm) % Residential Loans >0 - <=40 % 414 079 71,12% >40 - <=50 % 67 424 11,58% >50 - <=60 % 51 847 8,91% >60 - <=70 % 37 167 6,38% >70 - <=80 % 11 673 2,01% Total 582 191 100% Weighted Average LTV - Indexed 49.
Slide 11: Loan structure
Loan structure Q2 2021 Rate type Repayment 100% 100% 90% 90% 80% 80% 53% 51% 70% 61% 57% 70% 64% 64% 71% 72% 71% 71% 72% 60% 60% 80% Amortising 50% Floating rate 50% Bullet / interest only 40% Fixed rate 40% 30% 30% 47% 49% 20% 39% 43% 20% 36% 36% 29% 28% 29% 29% 28% 10% 10% 20% 0% 0% 20Q1 20Q2 20Q3
Slide 12: Underwriting criteria
Underwriting criteria Q2 2021 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 alge fee: tly Nordea
Slide 14: Swedish covered bond framework
Swedish covered bond framework Q2 2021 • Legal framework • Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 • A domestic legal proposal regarding the new EU covered bond directive was presented in November 2020 (SOU 2020:61) • Registration • An issuing institution is require
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 May 2021 • After the dramatic setback in 2020 due to the coronavirus, the Nordic economies have almost fully recovered Country (%, y/y) 2020 2021E 2022E • Vaccines hav
Slide 17: Nordic rates – Nordics well-equipped to handle long-term consequences of COVID
Nordic rates – Nordics well-equipped to handle long-term consequences of COVID Policy rates Public balance/debt, % of GDP, 2021E Comments • Norges Bank now expects to start hiking rates in September this year, with a second hike likely in December. Policy rates in the euro area, Denmark and Sweden a
Slide 18: Households remain resilient
Households remain resilient Household debt Household savings Comments • Household savings have increased dramatically during the crisis, mainly due to a decline in spending. Despite high debt levels, Nordic households’ strong finances are expected to support economic growth as restrictions are lifte
Slide 19: Nordic housing markets heat up
Nordic housing markets heat up House 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 due to unprecedented expansionary fiscal and monetary policy in support of hou
Slide 20: 6. Further information
6. Further information alee fee tly Nordea
Slide 21: Nordea Hypotek – outstanding benchmark covered bonds
Nordea Hypotek – outstanding benchmark covered bonds Q2 2021 Breakdown by ISIN Serial no. Currency Amount (m) Maturity Coupon (%) 5531 SEK 77 515 2022-04-08 1 5533 SEK 64 400 2023-09-20 1,25 5534 SEK 78 700 2024-09-18 1 5535 SEK 46 750 2025-09-17 1 5536 SEK 14 100 2026-09-16 0,50 - EUR 3 000* 2024-0
Slide 22: Contacts
Contacts Investor Relations Andreas Larsson Maria Caneman Head of Debt IR Senior Debt IR Officer Mobile: +46 709 70 75 55 Mobile: +46 738 66 17 24 Tel: +46 10 156 29 61 Tel: +46 10 156 50 19 andreas.larsson@nordea.com maria.caneman@nordea.com Group Treasury Cecilia Tannerfeldt Senior Treasury Manage