Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q3 2023 Earnings Presentation
22 slides from Nordea Bank Abp's earnings presentation, Oct 19, 2023
Slide 1: Q3 2023 Debt investor presentation: Nordea Hypotek Covered Bonds
Nordea / Q3 2023 Debt investor presentation os j #* Nordea Hypotek Covered Bonds / f- : 3 oe
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. Macroeconomy 16 6. Further information 20 Nordea
Slide 3: 1. In brief
1. In brief Nordea
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q3 2023 Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank Four aligned covered >» . > bond issuers with 4 . 4 complementary roles A Up of UD a . Legislation Norwegian Swedish Danish Finnish Cover pool assets Norwegian residential mortgages ‘Swedi
Slide 5: Covered bonds rated Aaa by Moody's
Covered bonds rated Aaa by Moody’s
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q3 2023 Feoverpetsumme Loans in cover pool SEK 684.6bn Outstanding covered bonds SEK 373.3bn Cover pool content Mortgage loans secured by residential or commercial property. Loans to public sector Geographic distribution Throughout Sweden with concentration to urban ar
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q3 2023 Cover pool balance by loan category* Multi-family = Commercial * 9 houses 4.0% Public 8 I a 13% Tenant owner associations 10.8% ® Single family houses 50.8% ™ Tenant owner units 29.9% * of which 1.7% agricultural ** excluding Public sector Cover pool balanc
Slide 9: 3. Asset quality
3. Asset quality Nordea
Slide 10: Loan To Value (LTV)
Loan To Value (LTV)* Continuous distribution where each loan can exist in multiple buckets Q3 2023 Weighted Average LTV — Indexed — 53.2% 648.2 100% 4867 75% Nominal % Residential Loans 669 473 307 166 10% ™% 5% 3% Ls — — - | — — 0-40% 40-50% 50-60% 60-70% 70-80% Total 0-40% 40-50% 50-60% 60-70% 70-
Slide 11: Loan structure
Loan structure Q3 2023 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 22Q2 2203 Rate type 22Q4 23Q1 23Q2 2393 = Floating rate mFixed rate 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 22Q2 2293 Repayment 23Q2 2393 = Amortising m Bullet / interest only 1 Nordea
Slide 12: Underwriting criteria
Underwriting criteria Private households + Track record and income checked via UC and Tink + 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 Nordea
Slide 14: Swedish covered bond framework
Swedish covered bond framework Legal framework * Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 and amended on 8 July 2022 in order to implement the European covered bond directive Registration + Anissuing institution is required to maintain a register on covered bonds, th
Slide 15: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 16: Nordic economic development
Nordic economic development New interest rate environment GDP development Unemployment rate n n 140 Tindex 2007Q1=100 GDP, level Index 2007Q1=100 mo % Unemployment % 135 135 10 10 430 | —Sweden [~~ 130 94 ° Norway WA 125 | —penmark —— 125 e e 120 | —Finlane! {ort 120 7 7 0 TO nos / —™ . 105, - -\ 10
Slide 17: Nordic economies
Nordic economies Higher for longer interest rates Policy rates Public balance/debt, % of GDP, 2023E (IMF) tel” Poti * 20235 8° olicy rates Norwa 40 25 “er 25 as 3.0 a 20 20 8 25 S15 15 2 20 2 #10 10 1s 5 \reland 10 10 =e? wa Netherlands ‘aust Portugal Spain United States ° os os Zo Eintang Austria °
Slide 18: Households
Households Heavy steps Household debt Household savings 300 19% of disposable Household debt % of disposable[ 30° 20.0 ty of disposable Household saving rate 20.0 275 income income|. 275 175 income 175 250 250 15.0 —Sweden Norway 225 225 2s —benmark 200 200 10.0 —Fintand 175 7s 7s 150 150 5.0 125 12
Slide 19: Housing markets
Housing markets Higher interest rates imply downside risks on the housing market Housing prices Households’ credit growth 250 1 dex, 2007=100 Housing prices index, 2007-100] *°° 19.0 464 iy Households’ credit growth vyiyp 2° 3m moving average 25 125 225 225 10.0 10.0 200 7s 7S 175 5.0 5.0 25 25 150
Slide 20: 6. Further information
6. Further information Nordea
Slide 21: Green bond / Retained bond issue
* Green bond ** Retained bond issue
Slide 22: Contacts
Contacts Investor Relations Maria Caneman Head of Debt IR and Ratings Tel: +46 10 156 50 19 Mobile: +46 768 24 9218 maria.caneman@nordea.com Group Treasury Cecilia Tannerfeldt Lead Dealer Tel: +46 8 407 9105 Mobile: +46 733 21 44 33 cecilia.tannerfeldt@nordea.com 2 Morten Kiel Head of Covered bonds