Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Debt Investor Presentation (January 2025)
38 slides from Nordea Bank Abp's debt investor presentation, January 2025
Slide 1: Debt investor presentation Q3 2024
Nordea Le, Debt investor presentation > yb we Q3 2024 ' eo
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management's current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance
Slide 3: Table of contents
Table of contents 1. Quarterly update 4 2. Credit quality 14 3. Capital, liquidity and funding 21 4. Macroeconomy 33 ° Nordea
Slide 4: 1. Quarterly update
1. Quarterly update Nordea
Slide 5: Third-quarter highlights 2024
Third-quarter highlights 2024 Executive summary Continued income growth - Total income up 2%. Net interest income down 1%, net fee and commission income up 4% and net fair value result up 26% - Operating profit amounted to EUR 1.6bn Return on equity* 16.7% — 17.1% excluding US settlement — and earni
Slide 6: Net interest income
Net interest income Stable volumes, lower deposit margins as expected Year-over-year bridge, EURm TH a N Q323. Volumes Margins Deposit Treasury Other hedge related items Quarter-over-quarter bridge, EURm 1,904 5 = 1,882 BO 7. 16 Ban 2 B = — Q224 Volumes Margins Deposit Treasury- Other FX Q324 hedge
Slide 7: Net interest income sensitivity
Net interest income sensitivity Net interest income sensitivity to policy rate changes + Nilimpact largely driven by policy Sensitivity to +50bp parallel rate shift in policy rates*, EURm rates and pass-through _ _ - Actual pass-through to vary between EE account types and countries, and throughout
Slide 8: Net fee and commission income
Net fee and commission income Continued growth driven by higher savings and payment & card income Year-over-year bridge, EURm v 774 ~~~ 0 a — 742 ail Za — - Q323 Asset Brok.& Pay.& Lending Other FX Q324 mgmt. advisory cards Quarter-over-quarter bridge, EURm — & 795 8 27 _- |__ ac “ER LL |_ = Q224 As
Slide 9: Net fair value result
Net fair value result Higher business activity in customer areas Net fair value result, EURm 21 284 3 247 225 35 (Goes 0) . A 7 154 -47 = Q323 Q423 Q124 Q224 Q324 Hl Customer areas* Treasury & other** M8) Market-making operations 9 “Excluding fair value adjustments to loans held at fair value in Nor
Slide 10: Costs
Costs Costs in line with plan Year-over-year bridge, EURm 17 1194 4g 37 ——— Q323 Underlying Investments M&A costs _ in technology integration & risk costs management Quarter-over-quarter bridge, EURm FX Q324 US Q324 settlement including US settlement 1278 —— Q224 Underlying Investments M&A costs in
Slide 11: Group Leadership Team
CO2 € x2 11 3) Group Leadership Team (GLT), GLT-1 and GLT-2
Slide 12: Sustainability at the core
Sustainability at the core Further strengthened climate targets in our lending portfolio Progress -29% (2023) Sector Sub-sector Emissions scope Metric Base year Baseline Targetyear Target Current status Residential real Households and tenant- -a0—509 16.6 kgCO2e/m2 estate owner associations Tand2 kg
Slide 13: Sustainability at the core
Sustainability at the core Actively engaging to drive transition and capture growth opportunities Channelling capital towards sustainable solutions Green and sustainability-linked loans Total volumes, EURbn Nordea Asset Management Assets under management, EURbn 13.3% inability-tir rom 119% 123% 124%
Slide 14: 2. Credit quality
2. Credit quality Nordea
Slide 15: Lending EUR 319bn
24% 33% Lending EUR 319bn 22% 21%
Slide 16: Net loan losses and similar net result
Net loan losses and similar net result Continued strong credit quality Net loan losses and similar net result, EURm 52 51 Individual Net collective Net loan losses Fair Value Total provisions provisions and write-offs Impaired (Stage 3) loans % 154 1.0 4 05 4 0.0 Q323 Q423 Q124 Q224 Q324 — Impairmen
Slide 17: • 19,469 19,092 18,541 13,988 16,207 • 2,234 2,457 2,343 2,585 2,857 • •
• 19,469 19,092 18,541 13,988 16,207 • 2,234 2,457 2,343 2,585 2,857 • • Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q324
Slide 18: Credit portfolio — real estate management industry (REMI)
Credit portfolio — real estate management industry (REMI)* Well-diversified portfolio, high-quality lending Lending volumes stable Diversified across countries 32 31 32 Finland Q323. Q423,— Q124Q224 Q324 Mi cre MB RRE 26% Norway 90% of portfolio with low probability Diversified across types** of def
Slide 19: DK FI NO
• 67 64 63 63 64 54 45% - 51 51 50 51 35% 32% 22% 24% 9% 11% 9% 2% 1% 2% 7% • DK FI NO SE Total Current 20% value decline Current 0-40% LTV 51-60% LTV 71-80% LTV - 20% value decline 41-50% LTV 61-70% LTV >80% LTV - 3.1 3.0 2.9 • 2.7 50% 2.3 2.3 2.1 2.1 37% 1.9 31% 1.5 24% - 19% 16% 9% 6% 2% 5% 0% 1%
Slide 20: RW floor Q323 Q423
50% RW floor • 8% 50% 6% 30% 6% 96% 94% 94% 94% 93% • 1% 5% 1% 6% 1% 6% 1% 6% 1% • 3% Q323 Q423 Q124 Q224 Q324 Q324 1-notch 2-notch 3-notch Impact Stage 1 Stage 2 Stage 3 • 90 51 60 51 57 57 52 63 47 • 36 Impairment rate Coverage ratio Q323 Q423 Q124 Q224 Q324
Slide 21: 3. Capital, liquidity and funding
3. Capital, liquidity and funding Nordea
Slide 22: Capital
Capital Significant buffer to capital requirements CET1 capital ratio 15.8% - 23 percentage points above regulatory requirement, corresponding to a CET1 Capital position and requirements (%) buifer of EUR 3.6bn CET1 requirement increase - Increased CET1 requirement of ~40bp as the Finnish FSA recipr
Slide 23: Capital
Capital Lower CET1 ratio following retail models go-live CET1 capital ratio development, % 17.5 19 15.8 -0.6 08 01 “5 15 Q224 New retail Profit Dividend Capital Q324 Requirement models management HM CET! requirement Capital policy buffer REA development, EURbn 154 141 139 139 139 Bp Banana wt Q323 0
Slide 24: Capital excellence
Capital excellence Strong capital generation supporting returns Reiterating shareholder returns supported by strong capital generation Year Average quarterly capital generation, bp ~80-90* Hl Capital generation net of dividend accrual EUR ~17-18bn Share buy-backs 8 Nv 2017-2019 7 N Dividends** Ss a
Slide 25: Balance sheet
Balance sheet Strong balance sheet structure Q3 2024 Liquid assets = Long-term assets 7 25 Other assets Derivatives Liquidity buffer Assets Other liabilities Derivatives Liabilities Short-term funding Long-term funding Total assets EUR 617bn at end of Q3 2024 - Strong balance sheet with deposits as
Slide 26: Liquidity
Liquidity Strong liquidity position Liquidity buffer composition, EUR 116bn Currency split Asset split 7% MMSEK MEUR 28% USD DKK NOK 18% Deposits and borrowings from the public*, EURbn Hl Level 1 cash & central bank Level 1 excl. covered bonds Level 1 covered bonds Level 2 assets 217 216 224 222 = o
Slide 27: • • • 5% 18% 20% 22% 17% 30% 7% 25% 50% 12% 22%
• • • 5% 18% 20% 22% 17% 30% 7% 25% 50% 12% 22% 36% 20% 3% 4% 68% • 21% 41% • 43% 8% 28% 27
Slide 28: Wholesale funding
Wholesale funding Solid funding operations Total wholesale funding, EUR 196bn ml MM CD &CP above 1Y HCD &CP below 1Y 1 Scandinavian covered bonds EUR covered bonds 1 Green covered bonds Senior preferred bonds IB Senior non-preferred bonds Subordinated debt I Sustainable bonds** Short term funding, E
Slide 29: Sustainability at the core
4 2024 YY le 2024 IFR es VS secre Yy Sustainability at the core Sustainable Se BattSSsur SY Best FIG ESG w RY)VA ¥ . . Issuer of the &%, Nordea Ly, Nordea i Enhanced focus on sustainable funding Year Sy ondporarle’ = “9 mdportaie Nordea’s green bond asset portfolio* EUR 19.9bn assets available for g
Slide 30: Covered bonds
Covered bonds Nordea covered bond operations Nordea Eiendomskreditt Four aligned covered bond issuers with 4 LN complementary roles q Dy Data as per Q2 Legislation Norwegian Norwegian residential mortgages EUR 27.8bn (eq,) Cover pool assets Cover pool size Covered bonds outstanding EUR 18.7bn (eq.)
Slide 31: Funding transactions
Funding transactions Nordea recent benchmark transactions Issuer Type Currency Amount (m) FRN/ Issue wih irst call date Nordea Bank Additional Tier 1 800 Fixed Sep-24 Perpetual Sep-31 Nordea Bank Senior preferred, SLL 2,500 FRN/Fixed Sep-24 Mar-30 Nordea Bank Senior preferred, SLL 2,400 FRN/Fixed Se
Slide 32: Minimum requirements for own funds and eligible liabilities
Minimum requirements for own funds and eligible liabilities MREL positions and requirements Subordinated MREL Nordea ratio, Reg. % REA, Nordea ratio, Reg, % LRE (03 -24,% REA capped 03 24, % LRE Total MREL 7.1% sp Ml own funds | | snp CBR Nordea ratio, Reg. % REA Nor tio, Reg. % LRE (03 -24,% REA 03
Slide 33: 4. Macroeconomy
4. Macroeconomy Nordea
Slide 34: Nordic economic development
Nordic economic development Activity picks up GDP Unemployment rate 140 Tindex 2007Q1=100 GDP, level index 2007a1=100[ 4°" ]% Unemployment «ef 135 135 10 10 130 | —Sweden Norway 125 7 —pDenmark 120 | —Fintand ns 10 105 ° ‘ > ‘ 10. REE vas 100 3 95 95 2 : 130 125 120 ns -nwesooaovae ° —sweden — Norwa
Slide 35: Nordic economies
Nordic economies Precision play Policy rates 5.0 % 45 40 35 3.0 25 20 15 1.0 Os 0.0 -05 1.0 Policy rates % 112°13°«14:«15 «16 «17:18 «19 20 21 22 23 24 25 26 Sweden — Norway — Denmark — Euro Area 5.0 Public balance/debt, % of GDP, 2024E (IMF) 25 ° 10.0 7s 5.0 25 0.0 25 Fiscal Balance, % of GDP 5.0 7
Slide 36: Households
Households Purchasing power is increasing, but from low levels 3 2 1 1 1 Household debt Household savings 100 1% of disposable Household debt % of disposable[ 30° 20.0 4% of disposable Household saving rate 275 income income| 275 475 Jincome 250 250 15.0 —Sweden — ~~ Norway 225 225 125 =Denmark 00 2
Slide 37: Housing markets
Housing markets Brighter outlook Home prices 250 index, 2007=100 Home prices 225 200 Sweden Norway Denmark Finland 175 150 125 100 7s 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 + Home prices have stabilised in the Nordics and modestly started to increase + Monetary policy will remain rest
Slide 38: Contacts
Contacts Investor Relations Ilkka Ottoila Head of Investor Relations Tel: +358 9 53 00 70 58 Ilkka.ottoila@nordea.com Group Treasury Anders Frank-Leessoe Group Treasurer, Head of Group Treasury Tel: +45 5547 76 72 anders.frank@nordea.com 38 Maria Caneman Head of Debt IR and Ratings Tel: +46 10 156 5
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