Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (2022)
27 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Nordea Kredit Covered Bonds Q3 2022 Debt Investor Presentation
Slide 2: Table of contents
Table of contents 1. Nordea covered bond operations Nordea Kredit in brief Cover pool key characteristics Asset quality Underwriting criteria Danish covered bond framework ol fn fi p> fo LV ETeige) . Links and contact ea Po a!
Slide 3: 1. Nordea covered bond operations
1. Nordea covered bond operations | tp ele: tly ° Nordea
Slide 4: Nordea covered bond issuers
Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank • • • 4
Slide 5: 2. Nordea Kredit - in brief
2. Nordea Kredit - in brief | tp ele: tly e Nordea
Slide 6: Nordea Kredit — in brief
Nordea Kredit — in brief Q3 2022 * 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution * Operates as a mortgage credit institution with the main purpose of granting mortgage credit loans funded by issuing covered bonds * Founded in 1993 and supervised by the Danish FS
Slide 7: 3. Cover pool key characteristics
3. Cover pool key characteristics alee fee: tly Nordea
Slide 8: Cover pool key characteristics
Cover pool key characteristics Q3 2022 Outstanding covered bonds EUR 61.1bn Cover ool content a a aay eae Geographic distribution Throughout Denmark with concentration in urban areas Weighted average LTV 44.1% Average residential loan size EUR 204,862 Over collateralisation, OC 7TA% Rate type (bonds
Slide 9: 17.0% 14.3% 11.2% 11.0% 3.7%
17.0% 14.3% 11.2% 11.0% 3.7% 9
Slide 10: Loan portfolio
Loan portfolio Q3 2022 Loan portfolio by loan type Share of interest-only mortgages n= — 55% - f Sania 52.5% 52.8% mARM 1-2¥ om 264% 27.6% 27.9% 285% 30.2% 30.8% 50% . 47.2% ARM 3-10Y 455% 45.8% 45% 50% 40% m Floating Rate 25% ; . 3.0 7 | ; - ~~ - 35% mFixed Rate ° 30% Q42018 Q42019 Q42020 Q42021 Q2
Slide 11: Loan portfolio
Loan portfolio Q3 2022 an balance by region ver pool balance by property category The North Denmark Region Other properties Agriculture Central Denmark Region Commercial properties 7% Miva The Capital Region of Denmark 12% Region of Southern Denmark Owner occupied dwellings Region Zealand u Nordea
Slide 12: Green loans
3,568 465 6,694 DKKm 12,318 1,581 11 12 Green loans can be granted against a mortgage on qualified properties according to the criteria set out by Nordea Kredit in the Nordea Green Bond Framework.
Slide 13: Financed emissions — and portfolio by EPCs
Financed emissions — and portfolio by EPCs H1 2022 Financed emissions ”) Total Total Financed Financed Total volume Coverage emission emission emission emission DKKbn (volume) tCO2 tCO2 CO2/DKKbn CO2/sqm Owner. Occ. Dwellings 268 95.3% 521,215 243,914 0.96 21 Commercial residential 42 917% 83,075 30
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Slide 15: Loan to value (LTV) — loans for residential and commercial properties
Loan to value (LTV) — loans for residential and commercial properties Q3 2022 Loan type Residential loans Commercial loans Weighted average LTV — indexed 52.7% 42.9% LTV buckets Nominal (DKKm) % Loans Nominal (DKKm) % Loans >0-<=40% 256,517 72.7% 60,519 76.2% > 40-<=50% 43,689 124% 10,389 13.1% >50-
Slide 16: Arrears and LTV weighted average
Arrears (owner occupied dwellings and holiday homes) * Loan to value (LTV) weighted average (all loans) Sector total 0.13% (0.13% last quarter) Nordea Kredit 0.10% (0.09% last 16
Slide 17: 5. Underwriting criteria
5. Underwriting criteria Habe fee: tly Nordea
Slide 18: Underwriting criteria
Underwriting criteria Private households * Behavioural score and individual credit assessment are conducted based on income information, e.g. payslips and tax information * "Before-after loan” household budgets are made and used in the assessment (based on 30 years annuity and fixed interest rate) +
Slide 19: 6. Danish covered bond framework
6. Danish covered bond framework Jia ls tly Nordea
Slide 20: Danish covered bond framework
Danish covered bond framework Legal framework * The Financial Business Act * The Mortgage-Credit Loans and Mortgage-Credit Bonds, etc. Act with several detailed executive orders + — Registration + Anissuing institution is required to maintain a static cover pool Sead Interest Interest payment paymen
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Slide 22: Nordic economic development
Nordic economic development Nordic outlook dampened by higher inflation and interest rates GDP development Unemployment rate 135 Jindex 2007Q1=100 GDP, level Index 2007Q1=100 135 he ‘Unemployment % " 130 =} 130 Ad 19 —sweden la ° 3 was | Non = 125 ms (fo 420 | =Denmark Wal + 120 8 ~ . =Fintand 7 If
Slide 23: Nordic economies
Nordic economies Interest rates are increasing rapidly throughout the Nordics Policy rates Public balance/debt, % of GDP, 2022E (IMF) 40 40 * Policy rates % 75 7s 35 35 ow Nowy 2022E 30 so 80 5.0 a Denmark 28 ap 25 B 25 25 T= =| 3 J Ireland Netherlands 20 ' 20 «8 1 g °° é ae 00 8 1s 2 Portugal g Fin
Slide 24: Households
Households Households facing high inflation and rising interest rates Household debt 300 46% of disposable Household debt % of disposable] 30° 275 {income income|. 275 250 250 225 225 200 200 175 7s 150 150 125 125 100 100 78 — Finland — Denmark — Norway — Sweden 78 so 50 02°03 04 °05°06'07 08 09101
Slide 25: Housing markets
Housing markets Rising interest rates are cooling off hot Nordic housing markets Housing prices Households’ credit growth 0 0 ° 2s Index, 2007=100 Housing prices Index, 2007=100) 25 180 \% v/y Households' credit growth % y/y! ~ Sm moving average 9 averags 205 125 125 10.0 10.0 200 75 75 175 50 Finla
Slide 26: 8. Links and Contacts
8. Links and Contacts alee fee: tly Nordea
Slide 27: Links for more information
Links for more information Nordea Kredit Legislation + Nordea Kredit ECBC harmonised transparency templates. * Danish mortgage credit institutions are supervised by the DFSA Link: https://www.nordea.com/en/investor-relations/reports-and- (Finanstilsynet). presentations/bonds/nordea-kredit-covered-bo