Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2018)
22 slides from Nordea Bank Abp's debt investor presentation, 2018
Slide 1: Nordea Mortgage Bank Covered Bonds
Nordea Mortgage Bank Covered Bonds Q2 2018 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
UL Cal Ck cal Ca
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q2 2018 Four aligned covered bond issuers with complementary roles Nordea Nordea Nordea Nordea Mortgage Eiendomskreditt Hypotek Kredit Bank Legislation Norwegian Swedish Danish/SDRO Finnish Cover pool assets Norwegian residential mortgages Swedish residential mortgages
Slide 5: Nordea Mortgage Bank Plc – overview
Nordea Mortgage Bank Plc – overview Q2 2018 • 100% owned subsidiary of Nordea Bank AB - 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 Q2 2018 Cover pool summary Pool notional EUR 20.1bn Outstanding Covered Bonds EUR 18.3bn 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) Q2 2018 Cover pool balance by loan category Cover pool balance by region Summer houses North/ East /Mid 2% Finland Multi-family Public sector housing 17% 1% 6% Greater Helsinki Area Single-family 43% South Finland houses 16% Tenant owner 44% units 47% West Finland
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 Q2 2018 Weighted Average LTV – Unindexed 50.2% LTV buckets Nominal (EURm) % Residential Loans >0 - <=40 % 15 309 76,84% >40 - <=50 % 2 102 10,55% >50 - <=60 % 1 535 7,71% >60 - <=70 % 976 4,90% Total 19 922 100
Slide 11: Loan structure
Loan structure Q2 2018 Rate type Repayment 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% Floating rate Amortising 50% 97,8% 97,9% 98,0% 98,0% 98,1% 98,1% 50% 95,1% 95,0% 95,0% 95,1% 94,8% 94,6% Fixed rate Bullet / interest only 40% 40% 30% 30% 20% 20% 10% 10% 0% 2,2% 2,1% 2,0% 2,0% 1,9% 1,9% 0% 4,9% 5,0
Slide 12: Underwriting criteria
Underwriting criteria Q2 2018 • 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 alee foe: tly Nordea
Slide 14: Finnish covered bond framework
Finnish covered bond framework Q2 2018 • 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) Q2 2018 • 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. Macro
5. Macro 16
Slide 17: Prospering Nordic economies
Prospering Nordic economies GDP development Unemployment rate Comments GDP forecast, % • The Nordics are enjoying an economic tailwind. While the Country 2015 2016 2017 2018E 2019E synchronized global recovery raise exports, the Denmark 1.6 2.0 2.2 1.8 1.7 accommodative monetary polices support dome
Slide 18: Household debt remains high, but so is private and public savings
Household debt remains high, but so is private and public savings Household debt Household savings Public balance/debt, % of GDP, 2018E Comments 10 8 • In all countries, apart from Denmark, household debt continues to rise somewhat faster than income. Meanwhile, households’ savings rates remain at h
Slide 19: House price development in the Nordics
House price development in the Nordics House prices Household’s credit growth Comments • Recent quarters have shown stabilisation in the Swedish and Norwegian housing markets, while prices continue to rise in Denmark and to some extent also in Finland • In Sweden house prices declined during H2 2017
Slide 20: 6. Further information
6. Further information alee fee: tly Nordea
Slide 21: Nordea Mortgage Bank – outstanding benchmark covered bonds
Nordea Mortgage Bank – outstanding benchmark covered bonds Q2 2018 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon XS0965104978 EUR 1 500 2018-08-28 1,375 XS1014673849 EUR 1 500 2019-01-14 1,25 XS0778465228 EUR 1 500 2019-05-03 2,25 XS0874351728 EUR 1 250 2020-01-15 1,375 XS1204134909
Slide 22: Contacts
Contacts Investor Relations Andreas Larsson Axel Malgerud Head of Debt IR Debt IR Officer Nordea Bank AB Nordea Bank AB Mobile: +46 709 70 75 55 Mobile: +46 721 41 51 50 Tel: +46 10 156 29 61 Tel: +46 10 157 13 13 andreas.larsson@nordea.com axel.malgerud@nordea.com Group Treasury & ALM Juho-Pekka Jä
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