Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (2023)
22 slides from Nordea Bank Abp's debt investor presentation, 2023
Slide 1: Q1 2023 Debt investor presentation: Nordea Eiendomskreditt Covered Bonds
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 15 6. Further information 20 Nordea
Slide 3: 1. In brief
1. In brief Nordea
Slide 4: Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank
Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank • • • Open
Slide 5: Nordea Eiendomskreditt — overview
Nordea Eiendomskreditt — overview * A100% owned subsidiary of Nordea Bank Abp * The purpose of the Issuer is to acquire and provide residential mortgage loans and finance its activities mainly through issuance of covered bonds * — Issues also green covered bonds * Loans are originated by Nordea Eien
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q1 2023 | Cover pool summary Pool notional NOK 239.2bn Outstanding Covered Bonds NOK 164.2bn Cover pool content Mortgage loans secured by Norwegian residential collateral Geographic distribution Throughout Norway with concentration to urban areas Asset distribution 100
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q1 2023 Cover pool balance by loan category Cover pool balance by region = Summer houses 3% West 19,2%_= = Tenant owner units 29% South 5,1% North 4,6%. &® Single family houses 68% Mid 8,8%. 8 Nordea Open
Slide 9: 3. Asset quality
3. Asset quality Nordea
Slide 10: LTV buckets Total Nominal (NOKbn)
LTV buckets Nominal (NOKbn) % Residential Loans >0 - <=40 % 67.3 46% >40 - <=50 % 44.7 16% >50 - <=60 % 56.3 17% >60 - <=70 % 48.6 14% >70 - <=80 % 22.2 6% Total 239.2 100% 10 Open
Slide 11: Fixed vs floating rate and amortisation split
100% 100% 90% 90% 80% 80% 70% 70% 61% 62% 62% 63% 63% 63% 60% 60% 50% 98% 98% 98% 97% 98% 98% 50% 40% 40% 30% 30% 20% 20% 38% 38% 37% 37% 37% 39% 10% 10% 2% 2% 2% 3% 2% 2% 0% 0% 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 21Q4 22Q1 22Q2 22Q3 22Q4 23Q1 Fixed rate Floating rate Bullet / interest only Amortising 11
Slide 12: Underwriting criteria
Underwriting criteria Regulation * Mortgages are regulated in "Boliglansforskriften" which sets requirements on borrowers’ debt to income, rent sensitivity, instalments and loan to value. Affordability * Customer's ability to service its commitment out of its cash flow/income is critical + Repayment
Slide 13: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 14: Norwegian covered bond framework
Norwegian covered bond framework Legal framework + Financial Undertakings Act (Act. No. 17 of 10 April 2015, Norwegian: Finansforetaksloven), which was recently amended on 8 July 2022 to implement the European Covered Bond Directive. Registration and independent inspector + Amortgage credit institut
Slide 15: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 16: Nordic economic development
Nordic economic development Strong economies are facing a recession GDP development Unemployment rate n n 135 Jindex 2007Q1=100 GDP, level Index 2007Q1=100 135 % Unemployment % 130 130 10 10 —Sweden ~f a5 | Swed A 125 9 ry om. ° Norway \7 420 | —Denmark Vrt 120 84 8 —Fintand "s VA fs Rae : ——_\ 6 H
Slide 17: Nordic economies
Nordic economies Interest rates set to peak in 2023 Policy rates % Policy rates 1 120:13'0°«14««S 16171819. «20-21-22. ==sweden Norway == Denmark == Euro Area 23 24 Public balance/debt, % of GDP, 2023E (IMF) Fiscal Balance, % of GDP 10 ery Netherlands Fintand Austria 2023E Portugal Spain United Stat
Slide 18: Households
Households Households squeezed by high interest rates and inflation Household debt Household savings 300 49% of disposable Household debt % of disposable| 30° 20.0 4% of disposable Household saving rate 20.0 275 income income|. 275 175 income 17s 250 250 15.0 —Sweden 15.0 Norway 225 225 12.5 —benmar
Slide 19: Housing markets
Housing markets Higher interest rates continues to cool off Nordic housing markets Housing prices 250 Index, 2007=100 Housing prices 3m moving average 225 200 175 150 125 250 Index, 2007-100] 225 200 175 150 125 100 100 75 75 07 08 09°10 1112 :13°14':15 16 °«17:«18 19° 20°21 22 ‘Source: Macrobend an
Slide 20: 6. Further information
6. Further information Nordea
Slide 21: Covered bonds — outstanding volumes
Covered bonds — outstanding volumes Domestic benchmark in NOK Amount, Interest rate Maturity Extended 1sIN Amount,M — Currency MNOK Issue date ‘Coupon type type —- Maturity maturity NO0010819717 5776 NOK 5776 2018-03-21 0,3 Float 2023-06-21 2024-06-21 NOQ0010843626 38900 NOK 38900 2019-02-26 0,34 Fl
Slide 22: Investor Relations Group Treasury
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 Ola Bladholm Morten Keil Chief Treasury Manager Head of Covered Bonds Tel: +46 101 56 1389 Tel: +45 3333 1875 Mobile: +46 702 69 6532 Mobile: +45 6177 3100 ola.
Nordea Eiendomskreditt — Debt Investor Presentation (2023) on 6ix