Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2022)
23 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Debt investor presentation: Nordea Mortgage Bank Covered Bonds
4 P 4 5 vA 92; 2023 Debt i investor presentation oh CP oN M e Bank Covered Bonds ; " Nowgleg Mortgage Ba oe he aa ‘ (Mer * eee
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. Macroeconomy 16 6. Further information 20 Nordea
Slide 3: 1. In brief
1. In brief Nordea
Slide 4: Covered bonds are an integral part of Nordea's long term funding operations
Q2 2022 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 Danish residential & comm
Slide 5: Covered bonds rated Aaa by Moody's
Q2 2022 • 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution • Operates as a mortgage credit institution with the main purpose of issuing covered bonds • Licensed by the European Central Bank to issue covered bonds according to the Finnish covered bond legislation (C
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Pool notional EUR 24.0bn
Q2 2022 Pool notional EUR 24.0bn Outstanding Covered Bonds EUR 20.7bn Cover pool content Mortgage loans secured by residential property. Loans guaranteed by public sector Geographic distribution Throughout Finland with concentration in urban areas Asset distribution 99.6% residential, 0.4% public se
Slide 8: Cover pool balance by loan
Q2 2022 Cover pool balance by loan Summer Houses 3% Public North/ East /Mid 0% Finland Multi-family houses 15% 4% Single -family South Finland houses 13% 40% Greater Helsinki Area 51% Tenant owner units 53% West Finland 21% 8 Open
Slide 9: 3. Asset quality
3. Asset quality Nordea
Slide 10: Loan To Value (LTV)
Loan To Value (LTV) Continuous distribution where each loan can exist in multiple buckets Q2 2022 Weighted Average LTV – Unindexed 53.5% LTV buckets Nominal (EURbn) % Residential Loans >0 - <=40 % 17.6 74% >40 - <=50 % 2.7 11% >50 - <=60 % 2.1 9% >60 - <=70 % 1.5 6% Total 23.9 100% Weighted Average
Slide 11: Loan structure
Loan structure Q2 2022 Rate type Repayment 100% 100% 90% 90% 31% 30% 30% 29% 29% 29% 80% 80% 70% 70% 60% 60% 50% 50% 94% 95% 95% 95% 95% 96% 40% 40% 68% 68% 69% 70% 70% 70% 30% 30% 20% 20% 10% 10% 0% 1% 1% 1% 1% 1% 1% 0% 6% 5% 5% 5% 5% 4% 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 F
Slide 12: Underwriting criteria
Underwriting criteria Q2 2022 • Residential mortgage loans • Nordea’s credit decision is based on the borrower’s repayment capacity and collateral is always taken • Collateral must be in the form of mortgages in real estate or in shares in housing companies • Repayment ability of borrowers is calcul
Slide 13: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 14: Limit on LTV ratio – based on the current value
Q2 2022 • Legal framework • Finnish Covered Bond Act (statute 688/2010) • Registration • Collateral assets remain on the balance sheet of the issuer • Covered bonds, collateral and relevant derivative contracts are entered in a separate register • Limit on LTV ratio – based on the current value • 70
Slide 15: Isolation of registered collateral assets, registered derivatives
Q2 2022 • Bankruptcy remoteness and preferential claim • Isolation of registered collateral assets, registered derivatives from all other assets and liabilities of the insolvent issuer • Holders of covered bonds together with counterparties of registered derivatives and bankruptcy liquidity loans in
Slide 16: 5. Macroeconomy
5. Macroeconomy alge fle tly Nordea
Slide 17: Nordic economic development
Nordic economic development Nordic economies are cooling down GDP development 135 Index 2007Q1=100 GDP, level Index 2007Q1=100 130 is a Finland 125 — Denmark ) a mS 120 1 ~~ Norway 120 Sweden us 110 105 V 7 aaa 0708 09 10° 1°12 °:93 14 °«95 16 «17 °«18 «19:20. «21 100 95 90 * The Nordic economies re
Slide 18: Nordic economies: interest rates to rise throughout the Nordics
Nordic economies Interest rates to rise throughout the Nordics Policy rates 3.0 4g % Policy rates % 25 20 -- 15 foc 1a 10 1 os Ji 0.0 -- 1 -05 1.0 nu 12° :130:«14 15, ==sweden 16 17 «18 «19° «20°«21 22 -2B Norway == Euro Area == Denmark 3.0 25 2.0 18 10 os 0.0 -05 71.0 Public balance/debt, % of GDP,
Slide 19: Households facing high inflation and rising interest rates
Households Households facing high inflation and rising interest rates Household debt 300 49% of disposable 275 fincome 250 225 200 175 150 125 100 75 50 % of disposable] 30° income|. 275 Household debt 250 225 200 175 150 125 100 75 Finland — Denmark — Norway —Sweden 50 0203 04°05°06 07°08 09°10°11
Slide 20: Housing markets
Housing markets Rising interest rates might cool off hot Nordic housing markets Housing prices Households’ credit growth 0 0 o 2st Index, 2007=100 Housing prices 25 15-0 be, vy Households’ credit growth 15.0 gag [3m moving average 295 125 25 200 200 10.0 Norway 10.0 75 75 175 175 5.0 5.0 1so O— Norw
Slide 21: 6. Further information
6. Further information Nordea
Slide 22: Breakdown by ISIN
Q2 2022 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon XS1308350237 EUR 1 250 19/10/2022 0.625% XS1784067529 EUR 1 250 28/02/2023 0.25% XS2157194643 EUR 8 500 16/11/2023 FRN XS1522968277 EUR 1 000 21/11/2023 0.25% XS1132790442 EUR 1 000 05/11/2024 1% XS1825134742 EUR 1 000 23/05/2025
Slide 23: Investor Relations Group Treasury
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 Petra Mellor Morten Keil Chief Treasury Manager Head of Covered Bonds Mobile: +46 702 77 8372 Tel: +45 3333 1875 Tel: +46 8 407 9124 Mobile: +45 6177 3100 petra
Nordea Mortgage Bank — Debt Investor Presentation (2022) on 6ix