Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2021)
23 slides from Nordea Bank Abp's debt investor presentation, 2021
Slide 1: Nordea Mortgage Bank Covered Bonds
Nordea Mortgage Bank Covered Bonds Q1 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 Q1 2021 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 prim
Slide 5: Nordea Mortgage Bank Plc – overview
Nordea Mortgage Bank Plc – overview Q1 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 Q1 2021 Cover pool summary Pool notional EUR 23.2bn Outstanding Covered Bonds EUR 21.0bn 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) Q1 2021 Cover pool balance by loan category Cover pool balance by region Summer Houses 3% North/ East /Mid Public Finland Multi-family 0% houses 16% 4% Greater Helsinki Single -family South Finland Area houses 14% 47% 41% Tenant owner units 52% West Finland 23% 8
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 Q1 2021 Weighted Average LTV – Unindexed 52.4% LTV buckets Nominal (EURm) % Residential Loans >0 - <=40 % 17 236 75% >40 - <=50 % 2 543 11% >50 - <=60 % 1 945 8% >60 - <=70 % 1 337 6% Total 23 061 100% Weighted
Slide 11: Loan structure
Loan structure Q1 2021 Rate type Repayment 100% 100% 90% 90% 30% 30% 31% 31% 80% 80% 70% 70% Capped rate 60% 60% Amortising 95% 95% 94% 90% 93% 94% 50% 99% 99% Floating rate 50% Bullet / 40% 40% 69% 68% interest only 68% 68% Fixed rate 30% 30% 20% 20% 10% 10% 5% 5% 6% 10% 7% 6% 0% 1,5% 1,4% 1,4% 1,3
Slide 12: Underwriting criteria
Underwriting criteria Q1 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 Q1 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) Q1 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. Macro
5. Macro 16
Slide 17: Nordic economies – strong rebound in sight
Nordic economies – strong rebound in sight GDP development, % Unemployment rate, % Comments GDP forecasts from Economic Outlook January 2021, % • After the dramatic setback in 2020 due to the coronavirus, there appears to be light at the end of the tunnel for 2021 Country (%, y/y) 2020 2021E 2022E •
Slide 18: Nordic rates – Nordics well equipped to handle long-term consequences of COVID-19
Nordic rates – Nordics well equipped to handle long-term consequences of COVID-19 Policy rates, % Public balance/debt (2021E), % Comments • Norges Bank now expects to start increasing rates in December 2021. However, due to its conservative assumptions regarding the roll-out of vaccines, we expect t
Slide 19: Households remain resilient
Households remain resilient Household debt, % Household savings, % Comments • Household savings have increased dramatically during the crisis, largely due to a decline in spending. Despite high debt levels, Nordic households’ strong finances are expected to support economic growth as soon as restric
Slide 20: Nordic housing markets heating up
Nordic housing markets heating up House 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 due to the unprecedented expansionary fiscal and monetary policy in support
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 Q1 2021 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon XS1554271590 EUR 1 500 2022-01-24 0,025 XS2157194643 EUR 8 500 2022-05-16 FRN XS1308350237 EUR 1 250 2022-10-19 0,625 XS1784067529 EUR 1 250 2023-02-28 0,25 XS1522968277 E
Slide 23: Contacts
Contacts Investor Relations Andreas Larsson Maria Caneman Head of Debt IR Senior Debt IR Officer Mobile: +46 709 70 75 55 Mobile: +46 738 66 17 24 Tel: +46 10 156 29 61 Tel: +46 10 156 50 19 andreas.larsson@nordea.com maria.caneman@nordea.com Group Treasury Glenn Lantz Senior Treasury Manager Mobile
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