Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (2022)
24 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Nordea Kredit Covered Bonds Q2 2022 Debt Investor Presentation
Nordea Kredit Covered Bonds Q2 2022 Debt Investor Presentation
Slide 2: Table of contents
Table of contents 1. Nordea covered bond operations 3 2. Nordea Kredit in brief 5 3. Cover pool key characteristics 7 4. Asset quality 11 5. Underwriting criteria 14 6. Danish covered bond framework 16 7. Macro 18 8. Links and contacts 23 2
Slide 3: 1. Nordea covered bond operations
1. Nordea covered bond operations 3
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q2 2022 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: 2. Nordea Kredit - in brief
2. Nordea Kredit - in brief | tp ele: tly 8 Nordea
Slide 6: Nordea Kredit – in brief
Nordea Kredit – in brief Q2 2022 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution Operates as a mortgage credit institution with the main purpose of granting mortgage credit loans funded by issuing covered bonds Founded in 1993 and supervised by the Danish FSA (DFS
Slide 7: 3. Cover pool key characteristics
3. Cover pool key characteristics 7
Slide 8: Cover pool key characteristics
Cover pool key characteristics Q2 2022 Outstanding covered bonds EUR 62.9bn Mortgage credit loans secured by mainly residential property Cover pool content (total: EUR 67bn including substitute assets) Geographic distribution Throughout Denmark with concentration in urban areas Weighted average LTV
Slide 9: Loan portfolio
Loan portfolio Loan portfolio by property category Loan portfolio by loan type 2,6% 100% 3,9% 2,9% 1,9% 1,8% 6,2% 5,1% Owner occ. dwellings & holiday homes 29,3% 26,2% 26,4% 27,6% 27,9% 30,2% ARM 1-2Y 8,4% 75% 7,3% Private rental housing 23,4% 21,1% 21,3% ARM 3-10Y 27,2% 26,9% 25,3% Total Commercial
Slide 10: Loan portfolio by regions – and green bonds
Loan portfolio by regions – and green bonds Loan portfolio by regions Green bonds The Capital Green loans can be granted against a 4% Region of mortgage on qualified properties Denmark according to the criteria set out by Region Zealand Nordea Kredit in the 21% Nordea Green Bond Framework. Region of
Slide 11: 4. Asset quality
4. Asset quality 11
Slide 12: Loan to value (LTV) – loans for residential and commercial properties
Loan to value (LTV) – loans for residential and commercial properties Q2 2022 Loan type Residential loans Commercial loans Weighted average LTV - indexed 53.5% 43.5% LTV buckets Nominal (DKKm) % Loans Nominal (DKKm) % Loans > 0 - ≤ 40 % 254,614 72.0% 60,715 75.7% > 40 - ≤ 50 % 44,193 12.5% 10,611 13
Slide 13: Asset quality
Asset quality Arrears (owner occupied dwellings and holiday homes) * Loan to value (LTV) weighted average (all loans) 63% 0,5% 61% 59% 0,4% 57% 56,8% All mortgage banks (including Nordea Kredit) 0.13% (last 0.13%) 0,3% 55% 53,2% 53,0% 53% 0,2% 51,5% 51% 0,1% 48,9% 49% Nordea Kredit 0.09% (last 0.10%
Slide 14: 5. Underwriting criteria
5. Underwriting criteria Habe foe: tly Nordea
Slide 15: Underwriting criteria
Underwriting criteria Private households Corporates, agriculture etc. • Behavioural score and individual credit assessment are • A financial analysis of the customer is made, including conducted based on income information, e.g. payslips and adjustments for current market conditions tax information
Slide 16: 6. Danish covered bond framework
6. Danish covered bond framework 16
Slide 17: Danish covered bond framework
Danish covered bond framework • Legal framework • The Financial Business Act • The Mortgage-Credit Loans and Mortgage-Credit Bonds, etc. Act with several detailed executive orders • Registration • An issuing institution is required to maintain a static cover pool • Mortgage deeds are registered in t
Slide 18: 7. Macro
7. Macro 18
Slide 19: Nordic economic development
Nordic economic development Hot economies are facing a “cold” winter GDP development Unemployment rate 135 Index 2007Q1=100 GDP, level Index 2007Q1=100 135 " % Unemployment rate % " 130 —Fintand ATR Finland A 94 9 128 }— Denmark WFO" 125 mS 8 3 120 Norway \ 120 a Swecen V 7 ff So) 7 aes, Sweden 1 {
Slide 20: Nordic economies
Nordic economies Interest rates are increasing rapidly throughout the Nordic. Policy rates Public balance/debt, % of GDP, 2022E (IMF) 35 35 % Policy rates % 7S 75 8 - eo Norway 2022E 5.0 5.0 25 25 0 a >. k a enmarl Oo 25 25 20 Ss J treiand Netherlands 15 ® 00 q 0.0 2 Portugal 2 Finland 1.0 2 25 a in
Slide 21: Households
Households Households facing high inflation and rising interest rates Household debt 300 46% of disposable Household debt % of disposable| 30° 275 {income income|. 275 250 250 225 225 200 200 175 7s 150 150 125 125 100 100 78 — Finland — Denmark — Norway — Sweden 78 50 50 "0203 °04°05"06 07°08'09"10
Slide 22: Housing markets
Housing markets Rising interest rates is cooling off hot Nordic housing markets Housing prices Households’ credit growth 0 0 o 250 4 tex, 2007100 Housing prices 25 80 do, iy Households’ credit growth x viyf 3m moving average 205 J averae! 205 125 125 10.0 10.0 200 200 7S 7S 175 175 50 50 150 150 25
Slide 23: 8. Links and Contacts
8. Links and Contacts Habe foe: tly Nordea
Slide 24: Links for more information and Contacts
Links for more information Nordea Kredit Legislation ▪ Nordea Kredit ECBC harmonised transparency templates. ▪ Danish mortgage credit institutions are supervised by the DFSA Link: https://www.nordea.com/en/investor-relations/reports-and- (Finanstilsynet). presentations/bonds/nordea-kredit-covered-bo