Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Hypotek — Debt Investor Presentation (2023)
22 slides from Nordea Bank Abp's debt investor presentation, 2023
Slide 1: Q2 2023 Debt investor presentation: Nordea Hypotek Bank Covered Bonds
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 15 6. Further information 19 Nordea
Slide 3: 1. In brief
1. In brief Nordea
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q2 2023 Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank Four aligned covered >» . > bond issuers with 4 . 4 complementary roles q A q di of NUD a . Legislation Norwegian Swedish Danish Finnish Cover pool assets Norwegian residential mortgages ‘
Slide 5: Nordea Hypotek — overview
Nordea Hypotek — overview * 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 + Allloans secured by mortgages, tenant-owner units or municipal/state guarantees
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q2 2023 Feoverpetsumma Loans in cover pool SEK 684.2bn Outstanding covered bonds SEK 395.4bn Cover pool content Mortgage loans secured by residential or commercial property. Loans to public sector Geographic distribution Throughout Sweden with concentration to urban ar
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q2 2023 Cover pool balance by loan category Cover pool balance by region* Multi-family = Commercial houses 2.3% . 3.4% Agricultural East Sweden : 17% 14% ™ Public sector \ 14% North Sweden Tenant owner 3% \ Greater associations =~ Stockholm 10.9% 38% ® Single famil
Slide 9: 3. Asset quality
3. Asset quality Nordea
Slide 10: Loan To Value (LTV)
Loan To Value (LTV)* Q2 2023 Weighted Average LTV - Unindexed 56.7% Po LTV buckets Nominal (SEKbn) % Residential Loans >0-<=40 % 460.0 72% >40 - <=50 % 735 1% >50 - <=60 % 541 8% >60-<=70 % 37.1 6% >70 - <=80 % 18.5 3% Total 647.4 100% Weighted Average LTV - Indexed 52.5% Po LTV buckets Nominal (SEK
Slide 11: Floating vs fixed rate and amortisation
100% 100% 90% 90% 80% 80% 46% 46% 48% 50% 52% 55% 70% 70% 67% 65% 64% 60% 60% 82% 82% 82% 50% Floating rate Amortising 50% Fixed rate Bullet / interest only 40% 40% 30% 30% 54% 54% 52% 50% 48% 45% 20% 20% 33% 35% 36% 10% 10% 18% 18% 18% 0% 0% 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 22Q1 22Q2 22Q3 22Q4 23Q1 23
Slide 12: Underwriting criteria
Underwriting criteria Private households * Track record and income checked via UC and Tink * Always household budget "before-after” with buffer requirement and stress test including behavioral analysis * Individual valuation of the pledged property Corporates / Municipalities * Financial analysis wi
Slide 13: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 14: Swedish covered bond framework
Swedish covered bond framework Legal framework * Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 and amended on 8 July 2022 in order to implement the European covered bond directive. Registration + Anissuing institution is required to maintain a register on covered bonds, t
Slide 15: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 16: Nordic economic development
Nordic economic development Resilient economies are facing headwinds GDP development Unemployment rate n n 140 Tindex 2007Q1=100 GDP, level Index 2007Q1=100 140 % Unemployment % 135 135 10 10 130 | —Sweden [| 130 2 yo~ ° Norway WA 125 | —penmark —— 125 8 e 120 | —Fintand \e i 120 7 7 110 —\ 10 5 / —
Slide 17: Nordic economies
Nordic economies Higher for longer interest rates Policy rates 45 40 35 30 25 20 15 10 05 00 -05 1.0 % Policy rates n° 13 14° 15 «16 OW 8 1D «20 oD == Sweden == Norway == Denmark == Euro Area 23 24 20 15 10 0s 0.0 -05 “1.0 Public balance/debt, % of GDP, 2023E (IMF) 30 2023E Norway 25 ~ a, 20 & S S15
Slide 18: Households
Households Feeling the squeeze Household debt Household savings 300 49% of disposable Household debt % of disposable| 30° 20.0 4% of disposable Household saving rate 20.0 275 income income|. 275 175 {income 175 250 250 15.0 — Sweden 15.0 Norway 225 225 2s —benmark 25 200 200 10.0 Finland 10.0 175 7s
Slide 19: Housing markets
Housing markets Higher interest rates imply downside risks on the housing market Housing prices Households’ credit growth 250 1 dex, 2007=100 Housing prices index, 2007-100] *°° 19.0 464 iy Households’ credit growth vyiyp 2° 3m moving average 25 125 225 225 10.0 10.0 200 7s 7S 175 5.0 5.0 25 25 150
Slide 20: 6. Further information
6. Further information Nordea
Slide 21: Breakdown by ISIN
Breakdown by ISIN Serial no. Currency Amount (m) Maturity Coupon 5533 SEK 50 407 20/09/2023 1.25% 5534 SEK 79 200 18/09/2024 1% 5535 SEK 83 272 17/09/2025 1% 5536 SEK 66 200 16/09/2026 0.5% 5537 SEK 56 600 16/06/2027 1% 5731 SEK 6 000* 25/11/2027 3.375% 5538 SEK 18 050 20/09/2028 3.5% - EUR 1 750**
Slide 22: Contacts
Contacts Investor Relations Maria Caneman Debt IR and ratings Mobile: +46 738 66 17 24 Tel: +46 10 156 5019 maria.caneman@nor m Group Treasury Cecilia Tannerfeldt Morten Keil Lead Dealer Head of Covered Bonds Tel: +46 8 407 91 05 Tel: +45 3333 1875 Mobile: +46 733 21 44 33 Mobile: +45 6177 3100 ia.t