Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2022)
23 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Nordea Mortgage Bank Covered Bonds
Nordea Mortgage Bank Covered Bonds Q4 2021 Debt investor presentation
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. Macro 16 6. Further information 20 2
Slide 3: 1. In brief
UR Cal Ca cal Ca
Slide 4: Nordea covered bond operations
Nordea covered bond operations 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 Da
Slide 5: Nordea Mortgage Bank Plc – overview
Nordea Mortgage Bank Plc – overview Q4 2021 • 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution • Operates as a mortgage credit institution with the main purpose of issuing covered bonds • Licensed by the European Central Bank to issue covered bonds according to the
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q4 2021 Cover pool summary Pool notional EUR 23.6bn Outstanding Covered Bonds EUR 20.8bn Cover pool content Mortgage loans secured by residential property. Loans guaranteed by public sector Geographic distribution Throughout Finland with concentration in urban areas As
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q4 2021 Cover pool balance by loan category Cover pool balance by region Summer Houses 3% Public North/ East /Mid 0% Finland Multi-family houses 15% 4% Single -family South Finland houses 13% 40% Greater Helsinki Area 51% Tenant owner units 53% West Finland 21% 8 O
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value (LTV) Continuous distribution where each loan can exist in multiple buckets Q4 2021 Weighted Average LTV – Unindexed 53.2% LTV buckets Nominal (EURbn) % Residential Loans >0 - <=40 % 17.4 74% >40 - <=50 % 2.6 11% >50 - <=60 % 2.0 9% >60 - <=70 % 1.4 6% Total 23.5 100% Weighted Average
Slide 11: Loan structure
Loan structure Q4 2021 Rate type Repayment 100% 100% 90% 90% 30% 31% 31% 30% 30% 29% 80% 80% 70% 70% 60% 60% 93% 94% 94% 95% 95% 95% 50% 50% 40% 40% 68% 68% 68% 68% 69% 70% 30% 30% 20% 20% 10% 10% 1% 1% 1% 1% 1% 1% 7% 6% 0% 6% 5% 5% 5% 0% 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 B
Slide 12: Underwriting criteria
Underwriting criteria Q4 2021 • Residential mortgage loans • Nordea’s credit decision is based on the borrower’s repayment capacity and collateral is always taken • Collateral must be in the form of mortgages in real estate or in shares in housing companies • Repayment ability of borrowers is calcul
Slide 13: 4. Covered Bond framework
4. Covered Bond framework alge fee: tly Nordea
Slide 14: Finnish covered bond framework
Finnish covered bond framework Q4 2021 • Legal framework • Finnish Covered Bond Act (statute 688/2010) • Registration • Collateral assets remain on the balance sheet of the issuer • Covered bonds, collateral and relevant derivative contracts are entered in a separate register • Limit on LTV ratio –
Slide 15: Finnish covered bond framework (2)
Finnish covered bond framework (2) Q4 2021 • Bankruptcy remoteness and preferential claim • Isolation of registered collateral assets, registered derivatives from all other assets and liabilities of the insolvent issuer • Holders of covered bonds together with counterparties of registered derivative
Slide 16: 5. Macroeconomy
5. Macroeconomy alge fle tly Nordea
Slide 17: Nordic economies – resilient economies back on track
Nordic economies – resilient economies back on track GDP development Unemployment rate Comments GDP, forecasts from Economic Outlook January 2022 • After the dramatic setback in 2020 due to the COVID-19 pandemic, the Nordic economies have all recovered. However, data points to a Country 2021E 2022E
Slide 18: Nordic economies – solid public finances, well-equipped for future
Nordic economies – solid public finances, well-equipped for future Policy rates Public balance/debt, % of GDP, 2021E Comments • Norges Bank increased its policy rate in September and December last year, and is expected to make further increases this year and in 2023. The policy rate in Sweden is exp
Slide 19: Households resilient
Households resilient Household debt Household savings Comments Private consumption • Household savings increased dramatically during the pandemic, largely due to a decline in spending, but have since returned to more normal levels as consumption has increased. Despite high debt levels, Nordic househ
Slide 20: Nordic housing markets hot during pandemic
Nordic housing markets hot during pandemic Housing prices Households’ credit growth Comments • Contrary to expectations, house prices have increased to record-high levels in all the Nordic countries during the crisis. This is not least because of unprecedented expansionary fiscal and monetary policy
Slide 21: 6. Further information
6. Further information alee pele tly Nordea
Slide 22: Nordea Mortgage Bank – outstanding benchmark covered bonds
Nordea Mortgage Bank – outstanding benchmark covered bonds Q4 2021 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon XS1554271590 EUR 1 500 24/01/2022 0.025% XS1308350237 EUR 1 250 19/10/2022 0.625% XS1784067529 EUR 1 250 28/02/2023 0.25% XS2157194643 EUR 8 500 16/11/2023* FRN XS15229682
Slide 23: Contacts
Contacts 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 Petra Mellor Morten Keil Chief Treasury Manager Head of Covered Bonds Mobile: +46 702 77 8372 Tel: +45 3333 1875 Tel: +46 8 407 9124 Mobile: +45 6177 3
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