Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (2022)
24 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Nordea Kredit Covered Bonds Q1 2022 Debt Investor Presentation
Nordea Kredit Covered Bonds Q1 2022 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 11 5. Underwriting criteria 14 6. Danish covered bond framework 16 7. Macro 18 8. Links and contacts 23 2
Slide 3: 1. Nordea covered bond operations
1. Nordea covered bond operations 3
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q1 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 prim
Slide 5: 2. Nordea Kredit - in brief
2. Nordea Kredit - in brief 5 Nordea
Slide 6: Nordea Kredit – in brief
Nordea Kredit – in brief Q1 2022 • 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 FS
Slide 7: 3. Cover pool key characteristics
3. Cover pool key characteristics 7
Slide 8: Cover pool key characteristics
Cover pool key characteristics Q1 2022 Outstanding covered bonds EUR 61.1bn Mortgage credit loans secured by mainly residential property Cover pool content (total: EUR 65.2bn including substitute assets) Geographic distribution Throughout Denmark with concentration in urban areas Weighted average LT
Slide 9: Loan portfolio
Loan portfolio Loan portfolio by property category Loan portfolio by loan type Total DKK 441.2 bn Share of interest-only mortgages Market share 1 – 14.3% overall 1) Market share of the Danish mortgage credit market 9
Slide 10: Loan portfolio by regions – and green bonds
Loan portfolio by regions – and green bonds Loan portfolio by regions Green bonds Since November 2019 Nordea Kredit has offered corporate customers green mortgage loans funded by designated green covered mortgage bonds. Green loans can be granted against a mortgage on qualified properties according
Slide 11: 4. Asset quality
4. Asset quality " Nordea
Slide 12: Loan to value (LTV) – loans for residential and commercial properties
Loan to value (LTV) – loans for residential and commercial properties Q1 2022 Loan type Residential loans Commercial loans Weighted average LTV - indexed 53.8% 43.3% LTV buckets Nominal (DKKm) % Loans Nominal (DKKm) % Loans >0 - <=40 % 252,293 71.3% 61,074 75.4% >40 - <=50 % 44,503 12.6% 10,517 13.0
Slide 13: Asset quality
Asset quality Arrears (owner occupied dwellings and holiday homes) * Loan to value (LTV) weighted average (all loans) 63% 0,5% 61% 59% 58.4% 0,4% 57% 56.8% 0,3% 55% All mortgage banks (including Nordea Kredit) 0.13% (last 0.14%) 53.2% 53.0% 53% 0,2% 51.5% 51% 48.9% 0,1% 49% Nordea Kredit 0.10% (last
Slide 14: 5. Underwriting criteria
5. Underwriting criteria “ Nordea
Slide 15: Underwriting criteria
Underwriting criteria Q1 2022 Private households Corporates, agriculture etc. • Behavioural score and individual credit assessment are conducted • A financial analysis of the customer is made, including adjustments for based on income information, e.g. payslips and tax information current market con
Slide 16: 6. Danish covered bond framework
6. Danish covered bond framework 16
Slide 17: Danish covered bond framework
Danish covered bond framework Q1 2022 • Legal framework • The Financial Business Act • The Mortgage-Credit Loans and Mortgage-Credit Bonds, etc. Act with several detailed executive orders • Registration • An issuing institution is required to maintain a static cover pool • Mortgage deeds are registe
Slide 18: 7. Macro
7. Macro 6 Nordea
Slide 19: Resilient economies face global uncertainty
Nordic economic development Resilient economies face global uncertainty GDP development Trade with Russia • After the dramatic setback in 2020 due to the coronavirus, the Nordic GDP, forecasts from Economic Outlook January 2022 economies recovered quickly and even showed signs of overheating. Howeve
Slide 20: Interest rates to rise throughout the Nordics
Nordic economies Interest rates to rise throughout the Nordics Policy rates Public balance/debt, % of GDP, 2022E • Central banks around the Western world are beginning to tighten monetary policy to combat the high inflation. Norges Bank has hiked their rate three times since last fall and is expecte
Slide 21: Households facing high inflation and rising interest rates
Households Households facing high inflation and rising interest rates Household debt Household savings Private consumption • Household savings increased dramatically during the pandemic, largely because of a decline in spending, but have since returned to more normal levels as consumption has increa
Slide 22: 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 • Contrary to expectations, house prices increased to record-high levels in all the Nordic countries during the pandemic, not least because of unprecedented expansionary fiscal an
Slide 23: 8. Links and Contacts
8. Links and Contacts 23 Nordea
Slide 24: Links for more information 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