Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2023)
23 slides from Nordea Bank Abp's debt investor presentation, 2023
Slide 1: Q1 2023 Debt investor presentation
Q1 2023 Debt investor presentation Nordea Mortgage Bank Coverec Cover pools 1&2
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 16 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: Covered bonds rated Aaa by Moody’s
• 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution • Operates as a mortgage credit institution with the main purpose of issuing covered bonds • Issuing covered bonds according to the Finnish covered bond legislation; – Legacy bonds - old Covered Bond Act (688/2010)
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Cover pool 1 (Legacy) and Cover Pool 2 (New) key characteristics
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: Cover pool balance by loan
Cover pool balance by loan Summer Public Houses North/ East Multi-family 0% 3% /Mid Finland houses 15% 4% South Cover Single - Finland Greater 13% Helsinki Pool 1 family houses Area Tenant 42% 51% owner units 51% West Finland 21% Summer Houses Public North/ East Multi-family 2% 0% /Mid Finland house
Slide 9: 3. Asset quality
3. Asset quality Nordea
Slide 10: Loan To Value (LTV)
Loan To Value (LTV) Continuous distribution where each loan can exist in multiple buckets Cover Pool 1 - Weighted Average LTV – Indexed 52.5% LTV buckets Nominal (EURbn) % Residential Loans >0 - <=40 % 15.4 75% >40 - <=50 % 2.2 11% >50 - <=60 % 1.7 8% >60 - <=70 % 1.2 6% Total 20.6 100% Cover Pool 2
Slide 11: Rate type
Rate type 100% 100% 90% 90% 29% 29% 29% 29% 29% 29% 80% 80% 70% Capped rate 70% 60% 60% Cover Floating rate Amortising 50% 50% 95% 95% 96% 96% 96% 96% Pool 1 Bullet / interest only 40% 70% 70% 70% 70% 70% 70% Fixed rate 40% 30% 30% 20% 20% 10% 10% 0% 1% 1% 1% 1% 1% 1% 0% 5% 5% 4% 4% 4% 4% 21Q4 22Q1
Slide 12: 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 usi
Slide 13: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 14: Finnish covered bond framework
Finnish covered bond framework Po Cover pool 1 — old until July 2022 Cover pool 2 — new as per July 2022 Legal framework Finnish Covered Bond Act (statute 688/2010) Finnish Mortgage Banks and Covered Bonds Act (statute 151/2022) LTV ratios Limit on LTV ratio — based on the current value Limit on LTV
Slide 15: Finnish covered bond framework, continued
Finnish covered bond framework, continued 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
Slide 16: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 17: 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 18: Nordic economies: Interest rates set to peak in 2023
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 19: Households squeezed by high interest rates and inflation
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 20: Higher interest rates continue to cool off Nordic 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 21: 6. Further information
6. Further information Nordea
Slide 22: Breakdown by ISIN
Breakdown by ISIN Cover Pool ISIN Currency Amount (EURm) Maturity Coupon 1 XS1522968277 EUR 1 000 21/11/2023 0.25% 1 XS1132790442 EUR 1 000 05/11/2024 1% 1 XS1825134742 EUR 1 000 23/05/2025 0.625% 1 XS2157194643 EUR 8 500 16/11/2025 FRN 2 XS2561746855 EUR 1 000 01/12/2025 2.625% 1 XS1963717704 EUR 1
Slide 23: 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 Petra Mellor Morten Keil Chief Treasury Manager Head of Covered Bonds Mobile: +46 702 77 8372 Tel: +45 3333 1875 Tel: +46 8 407 9124 Mobile: +45 6177 3100 petra
Nordea Mortgage Bank — Debt Investor Presentation (2023) on 6ix