Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Hypotek — Debt Investor Presentation (2019)
21 slides from Nordea Bank Abp's debt investor presentation, Nov 18, 2019
Slide 1: Nordea Hypotek Covered Bonds
Nordea Hypotek Covered Bonds Q2 2019 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 2019 Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit * Nordea Mortgage Bank Four aligned covered bond issuers with complementary roles Legislation Norwegian Swedish Danish/SDRO Finnish Cover pool assets Norwegian residential mortgages Swedish residential mortgag
Slide 5: Nordea Hypotek – overview
Nordea Hypotek – overview Q2 2019 • 100% owned subsidiary of Nordea Bank Abp (as of October 1st) - 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
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q2 2019 Cover pool summary Loans in cover pool SEK 542.6bn Outstanding covered bonds SEK 332.2bn 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 2019 Cover pool balance by loan category Cover pool balance by region* Multi-family Commercial houses 3% Outside Public East 3% Sweden Sweden sector 14% 0% 2% Tenant owner North associations Sweden Greater 11% 9% Stockholm Single 39% family houses West Tenant 53
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value* (LTV) Q2 2019 Weighted Average LTV – Unindexed 57.4% LTV buckets Nominal (SEKm) % Residential Loans >0 - <=40 % 363 144 70,71% >40 - <=50 % 59 752 11,64% >50 - <=60 % 46 599 9,07% >60 - <=70 % 33 568 6,54% >70 - <=80 % 10 487 2,04% Total 513 549 100% Weighted Average LTV - Indexed 52.
Slide 11: Loan structure
Loan structure Q2 2019 Rate type Repayment 100% 100% 90% 90% 80% 80% 70% 70% 71,1% 70,2% 73,8% 75,1% 76,0% 77,3% 78,2% 79,1% 60% 78,9% 79,9% 80,6% 80,4% 60% Floating rate Amortising 50% 50% Fixed rate Bullet / interest only 40% 40% 30% 30% 20% 20% 28,9% 29,8% 26,2% 24,9% 24,0% 22,7% 21,8% 20,9% 10%
Slide 12: Underwriting criteria
Underwriting criteria Q2 2019 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 2019 • 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: Robust Nordic economies
Robust Nordic economies GDP development Unemployment rate Comments GDP forecast, % • The Nordics have enjoyed a solid economic development in recent Country 2016 2017 2018 2019E 2020E years. The global economy slowed down more than expected during the end of last year to this year, especially in the
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, 2020E Comments 10 • Household debt continues to rise somewhat faster than income in Norway 8 Norway and Finland. Denmark continues to move in the opposite trend 6 while S
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. Credit growth in the Nordics is showing signs o
Slide 19: 6. Further information
6. Further information alge fee: tly Nordea
Slide 20: Nordea Hypotek – outstanding benchmark covered bonds
Nordea Hypotek – outstanding benchmark covered bonds Q2 2019 Breakdown by ISIN ISIN Currency Amount (SEKm) Maturity Coupon (%) 5521 SEK 67 066 2020-06-17 3,25 5532 SEK 73 300 2021-05-19 1,25 5531 SEK 86 515 2022-04-08 1 5533 SEK 51 950 2023-09-20 1,25 5534 SEK 34 650 2024-09-18 1 Total 313 481 20
Slide 21: Contacts
Contacts Investor Relations Andreas Larsson Maria Caneman Head of Debt IR Debt IR Officer Nordea Bank AB Nordea Bank AB Mobile: +46 709 70 75 55 Mobile: +46 768 24 92 18 Tel: +46 10 156 29 61 Tel: +46 10 156 50 19 andreas.larsson@nordea.com maria.caneman@nordea.com Group Treasury & ALM Cecilia Tanne