Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (2024)
27 slides from Nordea Bank Abp's debt investor presentation, 2024
Slide 1: Nordea
Nordea \\
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 a! fn fl p> fo Macroeconomy . Relevant links an Nordea
Slide 3: 1. Nordea covered bond operations
1. Nordea covered bond operations Habe pole: tly Nordea
Slide 4: Covered bonds
Covered bonds Nordea covered bond operations 4 Four aligned covered bond issuers with complementary roles Legislation Cover pool assets Cover pool size Covered bonds outstanding oc Issuance currencies Rating (Moody's / S&P) Outstanding green covered bonds Nordea Eiendomskreditt riLN Up Norwegian Nor
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 mortgage credit bonds (covered bonds) * Founded in 1993 and supervised
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 2024 Outstanding covered bonds EUR 59.0bn Cover pot content a ee ee ee ec Geographic distribution Throughout Denmark with concentration in urban areas Weighted average LTV 49.2% Average residential loan size EUR 208,111 Over-Interest collateralisation, OC 71% Intere
Slide 9: Loan portfolio
Loan portfolio Q2 2024 Market share! by property category Market share! — overall 175% 16.3% 16.2% 16.7% ™Q12024 ™Q22024 13.0% 12.9% 13.7% 136% 10.9% 10.7% 105% ° 13.5% 13.4% 13.2% ~ 10.1% 0.6% 0.6% : = Other Private rental © Owneracc. Manufactoring & Offices &retail Agriculture Q22023 932023 Q42023
Slide 10: Fixed rate, floating rate and ARMs share over time
30.8% 30.6% 33.3% 33.0% 33.1% 23.4% 21.2% 24.0% 25.0% 25.3% 53.1% 53.4% 53.6% 50.8% 48.2% 47.2% 45.8% 42.7% 41.9% 41.7% Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q2 2024 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q2 2024 Fixed Rate Floating Rate ARMs
Slide 11: Loan portfolio
Loan portfolio Q2 2024 an balance by region oan balance by property catego North DK Other properties 4% Agri. properties 8% Central DK Commercial properties 21% 8% Captital region Rental Southern DK 1% Owner occ. dwellings Zealand region ' Nordea
Slide 12: Green covered bond assets by category
Sustainable management and living natural Pollution prevention resources (organic farms), EURm 76 and control, EURm 929 3.5% 60 892 906 2.8% 875 Renewable energy, EURm 33 1.5% EURm 2,149 Energy efficiency, EURm 799 277 274 37.2% 76 76 Green building (EPC A-B), 1 1 EURm 1,182 55.0%
Slide 13: Financed emissions — and portfolio by EPCs
Financed emissions — and portfolio by EPCs Q2 2024 Financed emissions ") Total Financed Financed Total Coverage emission? 3) emission2.3) emission2.3) emission (volume) tCO2 tCO22) C02/DKKbn. CO2/sqm Owner. occ. dwellings 256 258 99.4% 99.4% 457,523 490,780 221,539 239,208 0.86 0.93 19 20 Commercial
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 2024 Loan type Mortgage loans for residential properties Mortgage loans for commercial properties Weighted average LTV — indexed 61.3% 41.8% LTV buckets Nominal (EURm) % Loans Nominal (EURm) % Loans >0-<40% 32,252 70.8% 7,725 7
Slide 16: Weighted average LTV development
49.2% 48.8% 48.9% 48.6% 47.3%
Slide 17: 5. Underwriting criteria
5. Underwriting criteria Jia ls tly Nordea
Slide 18: Underwriting criteria
Underwriting criteria Private households Corporates, agriculture etc. * Behavioural score and individual credit assessment are ¢ A financial analysis of the customer is made, including conducted based on income information, e.g. payslips and tax adjustments for current market conditions information
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 Continued normalization GD! 140 P Unemployment rate oon inex 200701=100 DP; level Index 200701=100 % ‘Unemptoyment % sweden pee | Sweden re | =Denmark —-) 125 B84 Finland J, t ; Te v0 : a V 105 a 100 (QS wo 95 LP 95 of oo ; —Sweden — Norway —Denmark—Finiand 2008 2010 2012
Slide 23: Nordic economies
Nordic economies The policy rate cutting cycle has commenced Policy rates 5.0 45 4.0 % Policy rates Forecast| ‘Nordea 112° 13:14:15 Sweden 16 17° 18 «19° 200-21 Norway — Denmark —Euro Area 22°23 24 «25, 5.0 45 40 35 3.0 25 20 15 1.0 Os 0.0 -0.5 1.0 Public balance/debt, % of GDP, 2024E (IMF) Fiscal B
Slide 24: Households
Households Purchasing power is increasing, but from low levels Household debt 300 “96 of disposable Household debt % of disposable] 30° 27s income income}. 275 250 250 225 225 200 200 175 175 150 150 125 125 100 100 7s 7s GC — Sweden — Norway — Denmark — Finland oC 2002 2004 2006 2008 2010 2012 2014
Slide 25: Housing markets
Housing markets Stabilisation process Home prices Households’ credit growth 1 250 Index, 2007=100 Home prices 250 5.0 \% v/y Households’ credit growth % Y/Y) 15.0 3m moving average 125 125 225 225 10.0 10.0 200 200 —sweden 7s 7s 75 | Norway 15 50 5.0 = perma 2s 25 150 150 ood oo 125 25 25 “5.0 5.0 1
Slide 26: 8. Relevant links and Contacts
8. Relevant links and Contacts | tp ele: tly 26 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 Danish FSA Link: httos://www.nordea.com/en/investor-relations/reports-and-presentations/bonds/nordea- (Finanstilsynet). kredit-cove