Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Debt Investor Presentation (2022)
22 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Q3 2022 Debt investor presentation
Nordea Q3 2022 Debt investor presentation Nordea Mortgage Bank Covered Bonds Cover pools 1 & 2
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: Nordea Mortgage Bank in brief
Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank • • • Open
Slide 5: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 6: Cover pool 1 (Legacy) and Cover Pool 2 (New)
Cover pool 1 (Legacy) Cover Pool 2 (New) Pool notional Outstanding Covered Bonds Cover pool content Geographic distribution Asset distribution Weighted average LTV* Average loan size* Over collateralisation, OC Rate type** Amortisation** Substitute assets Pool type Loans originated by * Residential
Slide 7: Cover pool balance by loan
Cover pool balance by loan Summer Public Houses North/ East Multi-family 0% 3% /Mid Finland houses 15% 4% South Cover Single - Finland family 13% Greater Pool 1 houses Helsinki 40% Area Tenant 52% owner units 53% West Finland 21% Summer Houses Public 3% North/ East Multi-family 0% /Mid Finland house
Slide 8: 3. Asset quality
3. Asset quality Nordea
Slide 9: Loan To Value (LTV)
Loan To Value (LTV) Continuous distribution where each loan can exist in multiple buckets Cover Pool 1 - Weighted Average LTV – Indexed 51.7% LTV buckets Nominal (EURbn) % Residential Loans >0 - <=40 % 17.3 74% >40 - <=50 % 2.5 11% >50 - <=60 % 1.9 9% >60 - <=70 % 1.3 6% Total 22.8 100% Cover Pool 2
Slide 10: Rate type
Rate type 100% 100% 90% 90% 30% 30% 29% 29% 29% 29% 80% 80% 70% Capped rate 70% 60% 60% Amortising Floating rate Cover 50% 50% 95% 95% 95% 95% 96% 96% Bullet / interest Pool 1 40% Fixed rate 40% 68% 69% 70% 70% 70% 70% only 30% 30% 20% 20% 10% 10% 0% 1% 1% 1% 1% 1% 1% 0% 5% 5% 5% 5% 4% 4% 21Q2 21Q3
Slide 11: Underwriting criteria
Underwriting criteria • 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 calculated usi
Slide 12: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 13: Finnish covered bond framework
Finnish covered bond framework Po Cover pool 1 — old until July 2022 Cover pool 2 — new as per July 2022 Legal framework Finnish Covered Bond Act (statute 688/2010) Finnish Mortgage Banks and Covered Bonds Act (statute 151/2022) LTV ratios Limit on LTV ratio — based on the current value Limit on LTV
Slide 14: Finnish covered bond framework, continued
Finnish covered bond framework, continued pO Cverpool 182 Registration * Collateral assets remain on the balance sheet of the issuer * — Covered bonds, collateral and relevant derivative contracts are entered in a separate register Bankruptcy remoteness Isolation of registered collateral assets and
Slide 15: 5. Macroeconomy
5. Macroeconomy alge fle tly Nordea
Slide 16: Nordic economic development
Nordic economic development Nordic outlook dampened by higher inflation and interest rates 135 130 125 120 1s 110 105 100 95 90 GDP development Unemployment rate Index 2007Q1=100 GDP, level Index 2007Q1=100] 1° Mee ‘Unempteyment * =} 130 Ad —sweden a ° > Denar a on ae > | s Finland 7 A AN Ll, Las ——
Slide 17: Nordic economies
Nordic economies Interest rates are increasing rapidly throughout the Nordics Policy rates Public balance/debt, % of GDP, 2022E (IMF) 40 40 % % 78 78 35 Policy rates | os ew Nowe 2022E 3.0 30 a 5.0 5.0 & Denmark 25 —— 25 Oo 25 25 T= S| S J tretana Netherlands 20 ' 20 «8 . ® 00 q ae 0.0 15 15 g Portu
Slide 18: Households
Households Households facing high inflation and rising interest rates Household debt 300 42% of disposable Household debt % of disposable] 20° 275 income income|. 275 250 250 225 225 200 200 175 7s 150 150 125 125 100 100 75 7s 2 — Finland — Denmark — Norway — Sweden 2 0203 04°05°06 07°08 09°10°11 1
Slide 19: Housing markets
Housing markets Rising interest rates are cooling off hot Nordic housing markets Housing prices Households’ credit growth 0 0 © ° 250 Tex 2007=100 Housing prices index 2007100] * B01 iy Households’ credit growth % vig 1° Sm moving average 225 1g 196 225 12.5 12.5 100 100 200 7S 7S 175 5.0 Finland 50
Slide 20: 6. Further information
6. Further information Nordea
Slide 21: Breakdown by ISIN
Breakdown by ISIN Cover Pool ISIN Currency Amount (EURm) Maturity Coupon 1 XS1308350237 EUR 1 250 19/10/2022 0.625% 1 XS1784067529 EUR 1 250 28/02/2023 0.25% 1 XS2157194643 EUR 8 500 16/11/2023 FRN 1 XS1522968277 EUR 1 000 21/11/2023 0.25% 1 XS1132790442 EUR 1 000 05/11/2024 1% 1 XS1825134742 EUR 1
Slide 22: Investor Relations
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