Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (2023)
27 slides from Nordea Bank Abp's debt investor presentation, 2023
Slide 1: Q2 2023 Debt Investor Presentation
SS Q2 2023 Debt Investor Prese an
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 fol fa 55 fo LV ETeige) . Links and contact ea a! Nordea
Slide 3: 1. Nordea covered bond operations
1. Nordea covered bond operations | tp ele: tly g 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 dj of UD a . Legislation Norwegian Swedish Danish Finnish Cover pool assets Norwegian residential mortgages ‘S
Slide 5: 2. Nordea Kredit - in brief
2. Nordea Kredit - in brief alee pele tly Nordea
Slide 6: Nordea Kredit — in brief
Nordea Kredit — in brief * 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 FSA (DFSA,
Slide 7: 3. Cover pool key characteristics
3. Cover pool key characteristics Habe fee: tly Nordea
Slide 8: Cover pool key characteristics
Cover pool key characteristics Q2 2023 Outstanding covered bonds EUR 60.6bn Cover ool content See ee Geographic distribution Throughout Denmark with concentration in urban areas Weighted average LTV 48.6% Average residential loan size EUR 206,274 Over collateralisation, OC 71% Rate type (bonds) Fixe
Slide 9: Loan portfolio
Loan portfolio Q2 2023 Market share! by property category Market share! — overall 17.0% 166% 90% - m% 4 143% 19% 13,5% 1a% 4 113% 14,0% — 11,0% 10,8% Wh + 16% + % 4 15% 143% 143% 5 14% 4 13,9% 13,8% 13,7% 13% 4 3,7% 3,7% 12% + 1% 4 . 10% Other Private rental Commercial Agricultural Owner occ. Q4 202
Slide 10: Loan portfolio
Loan portfolio Q2 2023 Loan portfolio by loan type re of interest-only mortgages 531% 53,3% 51,9% 2% % 2% 10% 50,8% 47,2% 27,6% 27,9% 28,5% 31,6% 31,7% 3.9% 2.9% 2.1%. 17% 1.6% Q42019 Q42020 © Q42021:~=—Q42022 = Q2.2023 Q42020 Q42021Q12022, Q42022 Q2.2023 HB Fixed Rate [MM Floating Rate ARM 3-10Y AR
Slide 11: Loan portfolio
Loan portfolio Q2 2023 an balance by region oan balance by property catego 4% 21% 13% I The Capital Region of Denmark Central Denmark Region HM Owner occupied dwellings Commercial properties Other properties Il Region Zealand The North Denmark Region Hl Rental Agriculture Region of Southern Denmark
Slide 12: Green portfolio by category
Sustainable management and living natural Polution Prevention resources (organic farms), DKKm 509 and control, DKKm 3,4% 413.5 2,8% Renewable energy, DKKm 424 2,8% Energy efficiency, DKKm 5855 39,1% Green building (EPC A-B), DKKm 7779 51,9%
Slide 13: Financed emissions — and portfolio by EPCs
Financed emissions — and portfolio by EPCs Q2 2023 Financed emissions ») Total Total Financed Financed Total volume Coverage emission emission emission emission DKKbn (volume) tCO2 tCO2 CO2/DKKbn CO2/sqm Owner. Occ. Dwellings 253 99.3% 513,093 248,571 0.98 21 Commercial residential 40 93.3% 104,637
Slide 14: 4. Asset quality
Slide 15: Loan to value (LTV) — loans for residential and commercial properties
Loan to value (LTV) — loans for residential and commercial properties Q2 2023 Loan type Weighted average LTV — indexed LTV buckets >0-<40% >40-<50% >50-<60% >60-<70% >70-<80% >80% Total Residential loans 57.2% Nominal (DKKm) 239,9123 43,728 32.138 19.184 9.359 3.757 348,079 % Loans 68.9% 12.6% 9.2%
Slide 16: Asset quality
Asset quality Q2 2023 Arrears (owner occupied dwellings and holiday homes) * Loan to value (LTV) weighted average (all loans) 0,32% 030% 0,28% 0,26% 0,24% 0,22% 0,20% 0,18% 0,16% 0,14% 0,12% 0,10% 0,08% 2013 2014 2015 2016 2017 2018 2019 2020 2021 — Nordea Kredit — Sector 16 Tl 48,6% 48,6% 2022 2023
Slide 17: 5. Underwriting criteria
5. Underwriting criteria Jia ls 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 implementing executive orders + — Registration — — + Anissuing institution is required to maintain a static cover pool payment Een . . . . . Princip
Slide 21: 7. Macroeconomy
7. Macroeconomy Ua. eal a tly a Nordea
Slide 22: 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 aan 120 7 7 110 —\ 10 5 /
Slide 23: Nordic economies
Nordic economies Higher for longer interest rates Policy rates Public balance/debt, % of GDP, 2023E (IMF) tel” Poti * 20235 8° olicy rates Norwa 40 25 “er 25 as 3.0 a 20 20 8 25 S15 15 2 20 20 > #10 10 1s 1s 5 \reland 10 10 =e? wa Netherlands ‘aust Portugal Spain United States ° os os Zo Eintang Aus
Slide 24: Households
Households Feeling the squeeze Household debt 300 40% of disposable Household debt % of disposable 300 = —Sweden — Norway — Denmark — Finland = (0203 04°05 06 07 08 0910 11. 12°13.14°15 16°17 18 19°20 21 22° + High and broad-based inflation and still rising interest rates continues to pressure house
Slide 25: 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 26: 8. Links and Contacts
8. Links and Contacts alge pele: 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