Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q4 2023 Earnings Presentation
22 slides from Nordea Bank Abp's earnings presentation, Feb 5, 2024
Slide 1: Q4 2023 Debt investor presentation: Nordea Hypotek Covered Bonds
(Q4 2023 Debt investor presentation Nordea Hypotek 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 16 6. Further information 20 Nordea
Slide 3: 1. In brief
1. In brief Nordea
Slide 4: Covered bonds
Covered bonds Nordea covered bond operations 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 Norwe
Slide 5: Covered bonds rated Aaa by Moody's
Covered bonds rated Aaa by Moody’s
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q4 2023 Feoverpet summa Loans in cover pool SEK 686.6bn Outstanding covered bonds SEK 384.2bn Cover pool content Mortgage loans secured by residential or commercial property. Loans to public sector Geographic distribution Throughout Sweden with concentration to urban a
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q4 2023 Cover pool balance by loan category* Multi-family = Commercial * 9 houses 4.0% Public 3% \ lew © Tenant owner associations 10,7% houses 50,8% = Tenant owner units 29,9% * of which 1.7% agricultural ** excluding Public sector ® Single family Cover pool balan
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 Q4 2023 Weighted Average LTV — Indexed — 53.5% 6502 100% 4867 75% Nominal % Residential Loans 672 a8 313 1" 10% ™% 5% 3% Le! — — - _ — — 0-40% 40-50% 50-60% 60-70% 70-80% Total 0-40% 40-50% 50-60% 60-70% 70-80
Slide 11: Loan structure
Loan structure Q4 2023 Rate type Repayment 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 100% 90% 80% 70% 60% = Floating rate 50% = Amortising ‘ m Bullet / interest only mFixed rate 40% 30% 20% 10% 0% 2203 2224) =23Q1_—-23Q2_) 23Q3 2304 22Q3 -22Q4) =—23Q1- 23Q2)— 23Q3— 23Q4 u Nordea
Slide 12: Underwriting criteria
Underwriting criteria Private households + Track record and income checked via UC and Tink + Always household budget “before-after” with buffer requirement and stress test including behavioral analysis + Individual valuation of the pledged property Corporates/ Municipalities + Financial analysis wit
Slide 13: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 14: Swedish covered bond framework
Swedish covered bond framework Legal framework * Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 and amended on 8 July 2022 in order to implement the European covered bond directive Registration + Anissuing institution is required to maintain a register on covered bonds, th
Slide 15: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 16: Nordic economic development
Nordic economic development Soft landing GDP Unemployment rate 140 Tindex 2007Q1=100 GDP, level Index 2007Q1=100] ‘4° "1% ‘Unemployment wl 135 10 430 | —Sweden ° Norway 125 7 = Denmark s 120 | —Finland 7 us 6 110 5 5 105 , a a 100 | AY a 3 a oo ; Sweden — Norway — Denmark — Finland ; 2008 2010 2012
Slide 17: Nordic economies
Nordic economies Past the peak Policy rates 5.0 4s 40 35 3.0 25 20 15 10 os 0.0 -05 “10 7 % Policy rates 0.0 “05 1.0 12° 13° 14°15" «16 17 1B 19 «20 «2 22 23 2a” 25 == Sweden == Norway == Denmark == Euro Area Public balance/debt, % of GDP, 2024E (IMF) 150 ; 20246 125 Norway 10.0 7S Wreland 251 venma
Slide 18: Households
Households Adapting to higher interest rates Household debt % of disposable] 30° incomel|. 275 300 49% of disposable 275 fincome Household debt 250 250 225 225 200 200 175 175 150 150 125 125 100 ee 100 75 75 so —Sweden — Norway — Denmark — Finland 50 2002 2004 2006 2008 2010 2012 2014 2016 2018 202
Slide 19: Housing markets
Housing markets Still under pressure from high interest rates Home prices Households’ credit growth 0 0 o 25 Index, 2007=100 Home prices index, 2007100) * 01 iy Households’ credit growth vy) 3m moving average 25 125 225 225 10.0 10.0 200 7s 7S 1s 50 5.0 25 25 150 0.0 + 0.0 425 -25 25 -5.0 5.0 100 75
Slide 20: 6. Further information
6. Further information Nordea
Slide 21: Green bond / Retained bond issue
* Green bond ** Retained bond issue
Slide 22: 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 Cecilia Tannerfeldt Lead Dealer Tel: +46 8 407 9105 Mobile: +46 733 21 44 33 cecilia.tannerfeldt@nordea.com 2 Morten Kiel Head of Covered bonds