Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2024)
24 slides from Nordea Bank Abp's debt investor presentation, 2024
Slide 1: Nordea Mortgage Bank Covered Bonds Investor Presentation
Nordea estor presentation en Mortage Bank Covered Be fan :
Slide 2: Table of contents
Table of contents 1. In brief 3 2. Cover pool key characteristics 6 3. Asset quality 10 4. Covered bond framework 14 5. Macroeconomy 7 6. Further information 2) Nordea
Slide 3: 1. In brief
1. In brief Nordea
Slide 4: Covered bonds
Covered bonds Nordea covered bond operations 4 Four aligned covered bond issuers with complementary roles Legislation Cover pool assets Cover pool size Covered bonds outstanding oc Issuance currencies Rating (Moody's / S&P) Outstanding green covered bonds Nordea Eiendomskreditt riLN Up Norwegian Nor
Slide 5: Nordea Mortgage Bank Plc — overview
Nordea Mortgage Bank Plc — overview Q2 2024 it 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution “a Operates as a mortgage credit institution with the main purpose of issuing covered bonds =] Issuing covered bonds according to the Finnish covered bond legislation Le
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Cover pool (Legacy) and Cover Pool (New)
Cover pool 1 (Legacy) Cover Pool 2 (New) Pool notional Outstanding Covered Bonds Cover pool content Geographic distribution Asset distribution Weighted average LTV* Average loan size* Over collateralisation, OC Rate type* Amortisation* Substitute assets Pool type Loans originated by * Residential
Slide 8: Geographic and asset distribution
0.3% 4% 3% 14% 42% 13% 52% 51% 21% 3% 0.3% 4% 14% 43% 13% 53% 50% 20% 8
Slide 9: Borrower distribution
0.04% 0.03% 6% 5% Natural persons Natural persons Housing companies Housing companies Other housing Other housing associations associations 94% 95% 9
Slide 10: 3. Asset quality
3. Asset quality Nordea
Slide 11: Loan To Value (LTV) distribution
Continuous distribution where each loan can exist in multiple buckets Loan To Value (LTV) Q2 2024 Cover Pool 1 - Weighted Average LTV — Indexed — 50.9% Nominal % Residential Loans 100% 135 76% 102 14 1 08 10% 8% 6% — — — Yd — — 0-40% 40-50% 50-60% 60-70% Total 0-40% 40-50% 50-60% 60-70% Total Cover
Slide 12: Loan structure
Cover Pool 1 Cover Pool 2 Loan structure Q2 2024 Rate type Repayment 100% 100% 20% . 29% 29% + 29% += 29% ~=— 29% © 29% Capped rate 80% 9 60% ™ Floating rate 60% mAmortising 40% m Fixed rate 40% m Bullet / interest only 20% 20% 0% 0% 2301 2402 2301 23Q2 24Q2 100% 100% 0% . 29% 29% — 29% += 29% += 29
Slide 13: Underwriting criteria
Underwriting criteria Residential mortgage loans + Nordea’s credit decision is based on the borrower's repayment capacity and collateral is always taken + Collateral must be in the form of mortgages in real estate or in shares in housing companies + Repayment ability of borrowers is calculated using
Slide 14: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 15: Finnish covered bond framework
Finnish covered bond framework Po Cover pool 1 — old until July 2022 Cover pool 2 — new as per July 2022 Finnish Mortgage Banks and Covered Bonds Act (statute 151/2022) Legal framework LTV ratios Coverage Liquidity risk mitigation Finnish Covered Bond Act (statute 688/2010) Limit on LTV ratio — base
Slide 16: Finnish covered bond framework (2)
Finnish covered bond framework (2) pO Cverpool 182 Registration * — Collateral assets remain on the balance sheet of the issuer * Covered bonds, collateral and relevant derivative contracts are entered in a separate register Bankruptcy remoteness Isolation of registered collateral assets and registe
Slide 17: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 18: Nordic economic development
Nordic economic development Continued normalisation GDP Unemployment rate 149 Jindex 2007Q1=100 GDP, level Index 2007Q1=100 140 " * Unemployment % " 135 135 0 sweden | 130 | =Sweden pr 8° "] ° ras | horney. : 125 120 | —Fintand f (| 74 7 15 15 6 6 110 Ty nos s 105 \ 105, a 4 100 (Ze V 100 3 3 9s JA~
Slide 19: Nordic economies
Nordic economies The policy rate cutting cycle has commenced Policy rates 5.0 ty, 45 40 35 3.0 25 20 18 1.0 Os 0.0 -05 “1.0 Policy rates 14°15 —Sweden 161718 19 20 21 2223 24 25 Norway — Denmark —Euro Area 5.0 Public balance/debt, % of GDP, 2024E (IMF) 150 25 100 7s Fiscal Balance, % of GDP. Denmark
Slide 20: Households
Households Purchasing power is increasing, but from low levels Household debt Household savings 300 1% of disposable Household debt % of disposable| 0° 20.0 1% of disposable Household saving rate 20.0 275 income income}. 975 17s lincome 175 250 250 150 Sweden 150 225 225 125 =venmerk 125 200 200 10.
Slide 21: Housing markets
Housing markets Stabilisation process Home prices Households’ credit growth 250 250 15.0 15.0 Index, 2007=100 Home prices \% v/y Households’ credit growth % y/y| [3m moving average 125 125 225 225 10.0 10.0 200 ——~ | 200 —Sweden 75 7s a5 | —Nerway Ws 5.0 5.0 TPenmark 25 25 —Finlan 150 150 oo oo Denm
Slide 22: 6. Further information
6. Further information Nordea
Slide 23: Nordea Mortgage Bank — outstanding benchmark covered bonds
Nordea Mortgage Bank — outstanding benchmark covered bonds Q2 2024 ISIN Currency Amount (EURm) Maturity Coupon XS1132790442 EUR 1000 05/11/2024 1.000% XS1825134742 EUR 1000 23/05/2025 0.625% XS2157194643 EUR 6 000 16/11/2025 FRN XS2561746855 EUR 1.000* 01/12/2025 2.625% XS1963717704, EUR 1500 18/03/
Slide 24: 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 Christian Peschel Dealer Tel: +46 8 429 3251 Mobile: +46 72 142 17 51 christian.peschel@nordea.com 24 Morten Kiel Head of Covered bonds Tel: +45
Nordea Mortgage Bank — Debt Investor Presentation (2024) on 6ix