Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Hypotek — Debt Investor Presentation (2020)
22 slides from Nordea Bank Abp's debt investor presentation, Nov 28, 2020
Slide 1: Nordea Hypotek Covered Bonds Q2 2020 Debt investor presentation
Nordea Hypotek Covered Bonds Q2 2020 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 Q2 2020 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 Hypotek – overview
Nordea Hypotek – overview Q2 2020 • 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 Q2 2020 Cover pool summary Loans in cover pool SEK 577.9bn Outstanding covered bonds SEK 364.8bn 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) Q2 2020 Cover pool balance by loan category Cover pool balance by region* Multi-family Commercial East Outside houses 3% Sweden Sweden 3% Public 0% 14% sector 2% North Tenant owner Sweden Greater associations 9% Stockholm 11% 39% Single West family Sweden houses 15
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value (LTV)* Q2 2020 Weighted Average LTV – Unindexed 57.3% LTV buckets Nominal (SEKm) % Residential Loans >0 - <=40 % 387 115 70,8% >40 - <=50 % 63 751 11,7% >50 - <=60 % 49 333 9,0% >60 - <=70 % 35 310 6,5% >70 - <=80 % 11 118 2,0% Total 546 627 100% Weighted Average LTV - Indexed 51.5% LT
Slide 11: Loan structure
Loan structure Q2 2020 Rate type Repayment 11
Slide 12: Underwriting criteria
Underwriting criteria Q2 2020 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 Q2 2020 • Legal framework • Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 • A Swedish investigation regarding the new EU covered bond directive will be presented 31 October 2020 • Registration • An issuing institution is required to maintain
Slide 15: 5. Macro
5. Macro 15
Slide 16: Nordic economies – years before back to normal
Nordic economies – years before back to normal GDP development Unemployment rate Comments GDP, %, baseline scenarios Country 2018 2019E 2020E 2021E • Lockdowns to halt the spread of Covid-19 have had enormous financial costs worldwide, and the Nordic economies are no exception. Denmark 2.4 2.4 -5.0
Slide 17: Nordic rates – low for very long
Nordic rates – low for very long Policy rates Public balance/debt, %, of GDP, 2021E Comments • Norway has seen three rate cuts totalling 150 bp in two months. Policy rates have been left unchanged in Sweden and the Euro Area while Denmark hiked the interest rate marginally due to technical reasons.
Slide 18: Household debt remains high, but so are private and public savings
Household debt remains high, but so are private and public savings Household debt Household savings Comments • Household debt is likely to level off in the coming year, in line with decelerating activity on the housing market. However, the debt ratio remains at elevated levels in all countries, supp
Slide 19: House price development in the Nordics
House price development in the Nordics House prices Household credit growth Comments • Rising unemployment and high uncertainty will take its toll on the Nordic housing markets. Before the crisis, low interest rates kept the Nordic housing markets afloat and stable price increases were expected in t
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 Q2 2020 Breakdown by ISIN ISIN Currency Amount (SEKm) Maturity Coupon (%) 5532 SEK 73 300 2021-05-19 1,25 5531 SEK 86 515 2022-04-08 1 5729 SEK 22 700 2022-07-29 FRN 5533 SEK 59 350 2023-09-20 1,25 5534 SEK 66 250 2024-09-18 1 5535 SEK 31 500 2025
Slide 22: Contacts
Contacts Investor Relations Andreas Larsson Maria Caneman Head of Debt IR Senior Debt IR Officer Mobile: +46 709 70 75 55 Mobile: +46 768 24 92 18 Tel: +46 10 156 29 61 Tel: +46 10 156 50 19 andreas.larsson@nordea.com maria.caneman@nordea.com Group Treasury & ALM Cecilia Tannerfeldt Senior Treasury