Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Hypotek Bank — Debt Investor Presentation (2022)
22 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Q2 2022 Debt investor presentation: Nordea Hypotek Bank 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 19 Nordea
Slide 3: 1. In brief
1. In brief Nordea
Slide 4: Covered bonds are an integral part of Nordea's long term funding 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 primarily Danish residential & comm
Slide 5: 100% owned subsidiary of Nordea Bank Abp
Q2 2022 • 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution • Grants long-term loans to Swedish households, municipalities, municipal housing companies and corporates • All loans secured by mortgages, tenant-owner units or municipal/state guarantees • Cost-effective
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Loans in cover pool SEK 662.0bn
Q2 2022 Loans in cover pool SEK 662.0bn Outstanding covered bonds SEK 336.5bn Cover pool content Mortgage loans secured by residential or commercial property. Loans to public sector Geographic distribution Throughout Sweden with concentration to urban areas Asset distribution 94.7% residential, 3.7%
Slide 8: Cover pool distribution by property type and region
Q2 2022 Multi-family Commercial houses 4% 3% East Sweden Public sector 14% 2% North Sweden Tenant owner 9% Greater associations Stockholm 11% 38% Single family houses 51% West Sweden 16% Tenant owner units 29% South Sweden 6% Greater Greater Gothenburg Malmoe 13% 4% 8 * excluding Public sector Open
Slide 9: 3. Asset quality
3. Asset quality Nordea
Slide 10: LTV buckets
Q2 2022 LTV buckets Nominal (SEKbn) % Residential Loans >0 - <=40 % 450.5 72% >40 - <=50 % 72.6 12% >50 - <=60 % 54.1 9% >60 - <=70 % 37.7 6% >70 - <=80 % 11.5 2% Total 626.4 100% LTV buckets Nominal (SEKbn) % Residential Loans >0 - <=40 % 501.8 80% >40 - <=50 % 60.2 10% >50 - <=60 % 38.3 6% >60 - <
Slide 11: Loan structure
Loan structure Q2 2022 Rate type 70% ar 51% 49% 47% 46% 46% 50% 40% 30% 20% 10% 0% 21Q1 2102 2103 2104 22Q1 2202 @ Fixed rate Floating rate Repayment 71% 72% 60% 83% 83% 82% 82% 0% + ¥ 21Q1 2102 2103 2104 22Q1 2202 @ Bullet / interest only Amortising 1 Open Nordea
Slide 12: Credit assessment for households, corporates and municipalities
Q2 2022 Private households • Track record and income checked via UC • Always household budget ”before-after” with buffer requirement and stress test including behavioral analysis • Individual valuation of the pledged property Corporates / Municipalities • Financial analysis with adjustments to marke
Slide 13: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 14: Limit on LTV ratio – based on the current value
Q2 2022 • Legal framework • Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 • A domestic legal proposal regarding the new EU covered bond directive was presented in November 2020 (SOU 2020:61). In October 2021, the Law Council referral was published (significantly delayed).
Slide 15: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 16: Nordic economies are cooling down
Nordic economic development Nordic economies are cooling down GDP development 135 Index 2007Q1=100 GDP, level Index 2007Q1=100 130 is a Finland 125 — Denmark ) a mS 120 1 ~~ Norway 120 Sweden us 110 105 V 7 aaa 0708 09 10° 1°12 °:93 14 °«95 16 «17 °«18 «19:20. «21 100 95 90 * The Nordic economies re
Slide 17: Interest rates to rise throughout the Nordics
Nordic economies Interest rates to rise throughout the Nordics Policy rates 3.0 4g % Policy rates % 25 20 -- 15 foc 1a 10 1 os Ji 0.0 -- 1 -05 1.0 nu 12° :130:«14 15, ==sweden 16 17 «18 «19° «20°«21 22 -2B Norway == Euro Area == Denmark 3.0 25 2.0 18 10 os 0.0 -05 71.0 Public balance/debt, % of GDP,
Slide 18: Households facing high inflation and rising interest rates
Households Households facing high inflation and rising interest rates Household debt 300 49% of disposable 275 fincome 250 225 200 175 150 125 100 75 50 % of disposable] 30° income|. 275 Household debt 250 225 200 175 150 125 100 75 Finland — Denmark — Norway —Sweden 50 0203 04°05°06 07°08 09°10°11
Slide 19: Rising interest rates might cool off hot Nordic housing markets
Housing markets Rising interest rates might cool off hot Nordic housing markets Housing prices Households’ credit growth 0 0 o 2st Index, 2007=100 Housing prices 25 15-0 be, vy Households’ credit growth 15.0 gag [3m moving average 295 125 25 200 200 10.0 Norway 10.0 75 75 175 175 5.0 5.0 1so O— Norw
Slide 20: 6. Further information
6. Further information Nordea
Slide 21: Breakdown by ISIN
Q2 2022 Breakdown by ISIN Serial no. Currency Amount (m) Maturity Coupon 5533 SEK 64 400 20/09/2023 1.25% 5534 SEK 79 200 18/09/2024 1% 5535 SEK 75 800 17/09/2025 1% 5536 SEK 27 800 16/09/2026 0.5% 5537 SEK 30 450 16/06/2027 1% - EUR 3 000* 19/03/2024 FRN * Retained bond issue 21 Open
Slide 22: Debt IR and ratings contacts
Maria Caneman Debt IR and ratings Mobile: +46 738 66 17 24 Tel: +46 10 156 50 19 maria.caneman@nordea.com Cecilia Tannerfeldt Morten Keil Senior Treasury Manager Head of Covered Bonds Tel: +46 8 407 91 05 Tel: +45 3333 1875 Mobile: +46 733 21 44 33 Mobile: +45 6177 3100 cecilia.tannerfeldt@nordea.co
Nordea Hypotek Bank — Debt Investor Presentation (2022) on 6ix