Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (2023)
27 slides from Nordea Bank Abp's debt investor presentation, 2023
Slide 1: Nordea
Nordea
Slide 2: Table of contents
Table of contents 1. Nordea covered bond operations Nordea Kredit in brief Cover pool key characteristics Asset quality Underwriting criteria Danish covered bond framework ol fn fi p> fo LV ETeige) . Links and contact ea Po a!
Slide 3: 1. Nordea covered bond operations
1. Nordea covered bond operations | tp ele: tly ° Nordea
Slide 4: Nordea covered bond issuers
Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank • • • 4 Confidential
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 alee fee: tly Nordea
Slide 8: Cover pool key characteristics
Cover pool key characteristics Q1 2023 Outstanding covered bonds EUR 58.9bn Cover pot content oe ee Geographic distribution Throughout Denmark with concentration in urban areas Weighted average LTV 48.6% Average residential loan size EUR 205,678 Over collateralisation, OC 73% Rate type (bonds) Fixed
Slide 9: Loan portfolio
Loan portfolio Q1 2023 Market share! by property category Market share! — overall 0, 16.9% 167% ro% - 145% 0, 13.8% | “0.5pp 1 119% 15% 414.0% 143% 14.3% 13.9% 13.8% 9 F 11.1% 1.2% 19 G04 10% 4 3.7% 3.7% 5% | 0% Other Private rental Commercial Agricultural Owner occ. Q4 2020 Q4 2021 Q1 2022 Q4 2022
Slide 10: Loan portfolio
Loan portfolio Q12023 Loan portfolio by loan type re of interest-only mortgages 53.1% 53.3% 51.9% 2% % er 50.8% 472% 27.6% 27.9% 28.5% 31.6% 317% 3.9% __29%____2.1% 1.7% __16%- Q42019 §Q42020 = Q42021 = 42022» Q1 2023 Q42020 42021 Q12022, Q4.2022, Q1.2023 Hl Fixed Rate MM Floating Rate ARM3-10Y — AR
Slide 11: Loan portfolio
Loan portfolio an balance by region ver pool balance by property category 4% 3% 21% 13% Hl The Capital Region of Denmark Central Denmark Region Hl owner occupied dwellings Commercial properties Other properties Il Region Zealand The North Denmark Region i Rental Agriculture Region of Southern Denmar
Slide 12: Green Bonds
Green Bonds Q12023 Green lending by asset category Green lending by property category - DKKm Sustainable management and living Polution 6,656 6,619 HB 04 2022 natural resources (organic farms), Prevention and i DKKm 526 | A control DKK 265 012023 4,784 4,394 Renewable energy, DKKm 453 33% Energy eff
Slide 13: Financed emissions and portfolio by EPCs
Financed emissions — and portfolio by EPCs Q12023 Financed emissions ”) Total Total Financed Financed Total volume Coverage emission emission emission emission DKKbn (volume) tCO2 tCO2 CO2/DKKbn CO2/sqm Owner. Occ. Dwellings 256 99.4% 516,246 252,592 0.99 21 Commercial residential 40 941% 106,349 48
Slide 14: 14
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Slide 15: Loan to value (LTV) — loans for residential and commercial properties
Loan to value (LTV) — loans for residential and commercial properties Q12023 Loan type Residential loans Commercial loans Weighted average LTV — indexed 56.6% 42.3% LTV buckets Nominal (DKKm) % Loans Nominal (DKKm) % Loans >0-<40% 238,756 68.9% 60,255 76.5% >40-<50% 43,627 12.6% 10,317 13.1% >50-<60
Slide 16: Nordea Kredit vs all mortgage banks Q1 2023
51.5% 0.28% 0.26% 0.24% 48.9% 48.6% 0.22% 0.20% 0.18% 46.3% 46.3% 0.16% 0.14% 44.1% 0.12% 0.10% 0.08% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 202
Slide 17: 5. Underwriting criteria
5. Underwriting criteria Habe fee: tly Nordea
Slide 18: Underwriting criteria
Underwriting criteria Private households * Behavioural score and individual credit assessment are conducted based on income information, e.g. payslips and tax information * "Before-after loan” household budgets are made and used in the assessment (based on 30 years annuity and fixed interest rate) +
Slide 19: 6. Danish covered bond framework
6. Danish covered bond framework Jia ls tly Nordea
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 — — * Anissuing institution is required to maintain a static cover pool Payment payment . . + . . Pri
Slide 21: 7. Macroeconomy
7. Macroeconomy Habe fee: tly Nordea
Slide 22: Nordic economic development
Nordic economic development Strong economies are facing a recession GDP development Unemployment rate 135 index 2007Q1=100 GDP, level Index 2007Q1=100 1° Mee ‘Unemployment Pare 130 7 130 10 10 —sweden 125 Norway — 125 420 | —Denmark \¢ + 120 By Spintane! \y ; ns us no —\— no pA ~ = ‘ veo m= Vv reo a
Slide 23: Nordic economies
Nordic economies Interest rates set to peak in 2023 Policy rates Public balance/debt, % of GDP, 2023E (IMF) 45 dog 30 30 o Policy rates Norway 2023E 40 25 -«, 25 35 bo a 20 20 S 25 6 15 15 20 on 1s a’ Ireland 0 1.0 B sfoenmart —ycthertands 5 € Portugal Spain United States os 2, ra Finland Austria an
Slide 24: Households
Households Households squeezed by high interest rates and inflation Household debt 300 46% of disposable 275 Jincome 250 225 200 175 150 125 100 78 50 % of disposable] 30° income|. 275 Household debt 250 225 200 175 150 125 100 75 50 —Sweden — Norway — Denmark — Finland 02 03 04°05 06 07 08.09.1011.
Slide 25: Housing markets
Housing markets Higher interest rates continues to cool off Nordic housing markets Housing prices Housing prices Index, 2007=100 3m moving average 250 Index, 2007=100] 225 200 175 150 125 100 75 07/08 09°10 11 12:13°14':15'16°=«17:«18 19° 20°21 22 ‘Source: Macrobend and Nordea Households’ credit gro
Slide 26: 8. Links and Contacts
8. Links and Contacts alee fee: tly Nordea
Slide 27: Links for more information
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