Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Hypotek — Debt Investor Presentation (2022)
22 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Nordea Hypotek Covered Bonds
Nordea Hypotek 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 15 6. Further information 19 2
Slide 3: 1. In brief
1. In brief 3
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 Hypotek – overview
Nordea Hypotek – overview Q4 2021 • 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution • Grants long-term loans to Swedish households, municipalities, municipal housing companies and corporates • All loans secured by mortgages, tenant-owner units or municipal/state g
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 Loans in cover pool SEK 639.2bn Outstanding covered bonds SEK 364.9bn Cover pool content Mortgage loans secured by residential or commercial property. Loans to public sector Geographic distribution Throughout Sweden with concentration to urba
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* Multi-family Commercial houses 4% 3% East Sweden Public sector 14% 2% Tenant owner North Sweden 9% Greater associations Stockholm 11% 38% Single family houses 51% West Sweden 16% Tenant owner
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value (LTV)* Q4 2021 Weighted Average LTV – Unindexed 56.6% LTV buckets Nominal (SEKbn) % Residential Loans >0 - <=40 % 432.1 71% >40 - <=50 % 70.1 12% >50 - <=60 % 53.1 9% >60 - <=70 % 37.6 6% >70 - <=80 % 11.7 2% Total 604.6 100% Weighted Average LTV - Indexed 48.5% LTV buckets Nominal (SE
Slide 11: Loan structure
Loan structure Q4 2021 Rate type Repayment 100% 100% 90% 90% 80% 80% 51% 49% 47% 57% 53% 70% 61% 70% 60% 72% 71% 71% 72% 60% 83% 83% 50% 50% 40% 40% 30% 30% 49% 51% 53% 43% 47% 20% 39% 20% 28% 29% 29% 28% 10% 10% 17% 17% 0% 0% 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 20Q3 20Q4 21Q1 21Q2 21Q3 21Q4 Fixed rate Fl
Slide 12: Underwriting criteria
Underwriting criteria Q4 2021 Private households • Track record and income checked via UC • Always household budget ”before-after” with buffer requirement and stress test including behavioral analysis • Individual valuation of the pledged property Corporates / Municipalities • Financial analysis wit
Slide 13: 4. Covered Bond framework
4. Covered Bond framework alge fee: tly Nordea
Slide 14: Swedish covered bond framework
Swedish covered bond framework Q4 2021 • Legal framework • Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 • A domestic legal proposal regarding the new EU covered bond directive was presented in November 2020 (SOU 2020:61). In October 2021, the Law Council referral was pub
Slide 15: 5. Macroeconomy
5. Macroeconomy alge fle tly Nordea
Slide 16: 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 17: 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 18: 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 19: 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 20: 6. Further information
6. Further information alee fee tly Nordea
Slide 21: Nordea Hypotek – outstanding benchmark covered bonds
Nordea Hypotek – outstanding benchmark covered bonds Q4 2021 Breakdown by ISIN Serial no. Currency Amount (m) Maturity Coupon 5531 SEK 70 515 08/04/2022 1% 5533 SEK 64 400 20/09/2023 1.25% 5534 SEK 79 200 18/09/2024 1% 5535 SEK 62 950 17/09/2025 1% 5536 SEK 24 050 16/09/2026 0.5% - EUR 3 000* 19/03/
Slide 22: 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 Cecilia Tannerfeldt Morten Keil Senior Treasury Manager Head of Covered Bonds Tel: +46 8 407 91 05 Tel: +45 3333 1875 Mobile: +46 733 21 44 33 Mobile: