Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (2022)
22 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Q2 2022 Debt investor presentation
Q2 2022 Debt investor presentation Nordea Eiendomskreditt Covered Bonds
Slide 2: Table of contents
Table of contents 1. In brief 3 2. Cover pool key characteristics 6 3. Asset quality 10 4. Covered bond framework 14 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: Cost-effective loan origination and service through Nordea Bank's nationwide Norwegian branch network and internet
Q2 2022 • A 100% owned subsidiary of Nordea Bank Abp • The purpose of the Issuer is to acquire and provide residential mortgage loans and finance its activities mainly through issuance of covered bonds • Issues also green covered bonds • Loans are originated by Nordea Eiendomskreditt (NE) • Collater
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Cover pool key characteristics
Q2 2022 Pool notional NOK 222.5bn Outstanding Covered Bonds NOK 121.1bn Cover pool content Mortgage loans secured by Norwegian residential collateral Geographic distribution Throughout Norway with concentration to urban areas Asset distribution 100% residential Weighted average LTV 48.9% (indexed, c
Slide 8: Cover pool distribution by property type and region
Q2 2022 Summer houses 3% Tenant owner West 20% units 28% South 5% North 5% Single family houses East 62% 69% Mid 9% 8 Open
Slide 9: 3. Asset quality
3. Asset quality Nordea
Slide 10: LTV buckets Total
Each loan is reported in the highest bucket Q2 2022 LTV buckets Nominal (NOKm) % Residential Loans >0 - <=40 % 63.5 46% >40 - <=50 % 43.1 17% >50 - <=60 % 50.7 17% >60 - <=70 % 44.8 14% >70 - <=80 % 20.5 6% Total 222.5 100% 10 Open
Slide 11: Fixed/floating rate and amortisation split
Q2 2022 100% 100% 90% 90% 80% 80% 70% 70% 61% 62% 63% 62% 62% 63% 60% 60% 50% 98% 98% 98% 98% 98% 98% 50% 40% 40% 30% 30% 20% 20% 39% 38% 37% 38% 38% 37% 10% 10% 2% 2% 2% 2% 2% 2% 0% 0% 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 21Q1 21Q2 21Q3 21Q4 22Q1 22Q2 Fixed rate Floating rate Bullet / interest only Amorti
Slide 12: Mortgage regulation and lending criteria
Q2 2022 Regulation • Mortgages are regulated in "Boliglånsforskriften" which sets requirements on borrowers' debt to income, rent sensitivity, instalments and loan to value. Affordability • Customer's ability to service its commitment out of its cash flow/income is critical • Repayment ability of bo
Slide 13: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 14: Norwegian covered bond legal framework
Q2 2022 • Legal framework • Financial Undertakings Act (Act. No. 17 of 10 April 2015, Norwegian: Finansforetaksloven) • Registration and independent inspector • A mortgage credit institution shall for each cover pool establish a register of loans, interest rate contracts and foreign exchange contrac
Slide 15: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 16: Nordic economies are cooling down
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 17: 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 18: 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 19: Rising interest rates might cool off hot Nordic 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 20: 6. Further information
6. Further information Nordea
Slide 21: Covered bonds outstanding by ISIN
Q2 2022 ISIN Currency Amount (NOKm) Maturity Coupon (%) NO0010819717 NOK 18 550 2023-06-21 FRN NO0010843626 NOK 28 900 2024-06-19 FRN NO0010873334 NOK 20 000 2025-03-19 FRN NO0010593064 NOK 550 2025-06-18 4,8 NO0010893282 NOK 13 500 2025-09-16 FRN NO0010981301 NOK 10 000 2026-03-18 FRN NO0010852650
Slide 22: 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 Ola Bladholm Morten Keil Chief Treasury Manager Head of Covered Bonds Tel: +46 101 56 1389 Tel: +45 3333 1875 Mobile: +46 702 69 6532 Mobile: +45 6177 3100 ola.
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