Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q1 2024 Earnings Presentation
27 slides from Nordea Bank Abp's earnings presentation, Apr 18, 2024
Slide 1: Nordea Kredit Covered Bonds Q1 2024 Debt Investor Presentation
Nordea Kredit Covered Bonds Q1 2024 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 14 5. Underwriting criteria 17 6. Danish covered bond framework 19 7. Macroeconomy 21 8. Links and contacts 26 2
Slide 3: 1. Nordea covered bond operations
1. Nordea covered bond operations 3
Slide 4: Nordea covered bond operations
Covered bonds Nordea covered bond operations 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 Swedish residential Danish residential
Slide 5: 2. Nordea Kredit - in brief
2. Nordea Kredit - in brief alee fee: tly Nordea
Slide 6: Nordea Kredit – in brief
Nordea Kredit – in brief • 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 (DFSA,
Slide 7: 3. Cover pool key characteristics
3. Cover pool key characteristics 7
Slide 8: Cover pool key characteristics
Cover pool key characteristics Q1 2024 Outstanding covered bonds EUR 57.8bn Mortgage credit loans secured by mainly residential property Cover pool content (total: EUR 61.8bn including substitute assets) Geographic distribution Throughout Denmark with concentration in urban areas Weighted average LT
Slide 9: Loan portfolio
Loan portfolio Q1 2024 Market share 1 by property category Market share 1 – overall 17.8% 17.5% 16.4% 16.3% Q4 2023 Q1 2024 13.0% 13.0% 13.8% 13.7% 13.6% 13.5% 13.4% 11.0% 10.9% 10.6% 10.5% 0.6% 0.6% Other Private rental Owner occ. Manufactoring & Offices & retail Agriculture Q1 2023 Q2 2023 Q3 2023
Slide 10: Total loan portfolio (CC1 and CC2)
Total loan portfolio (CC1 and CC2) Q1 2024 Loan portfolio by loan type Share of interest-only mortgages 30.8% 30.6% 33.3% 33.0% 32.7% 23.4% 21.2% 24.0% 25.0% 25.5% 53.1% 53.4% 53.4% 50.8% 45.8% 48.2% 47.2% 42.7% 41.9% 41.8% Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q1 2024 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q1 2
Slide 11: Loan portfolio
Loan portfolio Q1 2024 Loan balance by region Loan balance by property category Northern DK Commercial prop. Other 3% 8% 3% Central DK 21% Rental 12% Capital region 46% Agri. properties 8% Southern DK 13% Owner occ. dwellings 69% Zealand region 17% 11
Slide 12: Green Bonds
Green Bonds Q1 2024 Green lending by asset category Green lending by property category - EURm Sustainable management and living Pollution prevention and Q4 2023 929 natural resources (organic farms), control, EURm 60 EURm 72 2.8% 884 875 Q1 2024 857 3.3% Renewable energy, EURm 36 1.7% EURm 2,159 Ene
Slide 13: Financed emissions – and portfolio by EPCs
Financed emissions – and portfolio by EPCs Q1 2024 Financed emissions 1) Portfolio by EPCs 1, 3) Total Total Financed Financed Total volume Coverage emission emission emission emission Type of property DKKbn (volume) tCO2 tCO2 CO2/DKKbn CO2/sqm EPC Volume DKKbn Owner. occ. dwellings 258 99.4% 490,78
Slide 14: 4. Asset quality
4. Asset quality 14
Slide 15: Loan to value (LTV) – loans for residential and commercial properties
Loan to value (LTV) – loans for residential and commercial properties Q1 2024 Loan type Mortgage loans for residential properties Mortgage loans for commercial properties Weighted average LTV – indexed 54.8% 41.3% LTV buckets Nominal (EURm) % Loans Nominal (EURm) % Loans > 0 - ≤ 40 % 32,513 71.1% 7,
Slide 16: Asset quality
Asset quality Q1 2024 Arrears (owner occupied dwellings and holiday homes) * Loan to value (LTV) weighted average (all loans) 0.30% 0.25% Q4 2023 50% All mortgage banks (including Nordea Kredit) 48.8% 48.9% 0.15% (last 0.15%) 48.6% 48.6% 0.20% 47.3% 0.15% 45% 0.10% All mortgage banks (including Nord
Slide 17: 5. Underwriting criteria
5. Underwriting criteria alee fee: tly Nordea
Slide 18: 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 tax adjustments for current market conditions information
Slide 19: 6. Danish covered bond framework
6. Danish covered bond framework 19
Slide 20: 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 implementing executive orders • Registration • An issuing institution is required to maintain a static cover pool • Mortgage deeds are registered
Slide 21: 7. Macroeconomy
7. Macroeconomy abe fee: tly Nordea
Slide 22: Nordic economic development: Recovery
Nordic economic development Recovery GDP Unemployment rate • The Nordic economies have shown mixed trends on the GDP, % y/y, Economic Outlook January 2024 back of surging inflation and higher interest rates. Country 2022 2023 2024E 2025E However, the economic development in most of the countries hav
Slide 23: Central banks moving closer to cutting policy rates
Nordic economies Central banks moving closer to cutting policy rates Policy rates Public balance/debt, % of GDP, 2024E (IMF) • The Swedish Riksbank, ECB, Danmarks Nationalbank and Norges Bank are not expected to raise policy rates any further • The Riksbank is expected to start cutting the policy ra
Slide 24: Households: Stabilisation
Households Stabilisation Household debt Household savings Private consumption • Household consumption will remain sluggish due to high interest rates. Denmark and Norway is expected, however, to recover better this year than their Nordic counterparts. • Households’ purchasing power will continue to
Slide 25: Housing markets: Stabilisation
Housing markets Stabilisation Home prices Households’ credit growth • Home prices have stabilised in Sweden and Norway at the start of this year, possibly attributed to households’ expectations of lower interest rates. Developments were mixed last year in the Nordics after rising to record-high leve
Slide 26: 8. Links and Contacts
8. Links and Contacts alee fee tly Nordea
Slide 27: 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