Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Hypotek — Debt Investor Presentation (2021)
22 slides from Nordea Bank Abp's debt investor presentation, May 7, 2021
Slide 1: Nordea Hypotek Covered Bonds
Nordea Hypotek Covered Bonds Q4 2020 Debt investor presentation
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. Macro 15 6. Further information 19 2
Slide 3: 1. In brief
1. In brief 3
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q4 2020 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: Nordea Hypotek – overview
Nordea Hypotek – overview Q4 2020 • 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 g
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q4 2020 Cover pool summary Loans in cover pool SEK 596.4bn Outstanding covered bonds SEK 388.8bn Cover pool content Mortgage loans secured by residential or commercial property. Loans to public sector Geographic distribution Throughout Sweden with concentration to urba
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q4 2020 Cover pool balance by loan category Cover pool balance by region* Multi-family Commercial houses 4% Public East 3% sector Sweden 2% 14% North Tenant owner Sweden Greater associations 9% Stockholm 11% Single 38% family houses West 51% Sweden Tenant 15% owner
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value (LTV)* Q4 2020 Weighted Average LTV – Unindexed 57.1% LTV buckets Nominal (SEKm) % Residential Loans >0 - <=40 % 400 006 70,9% >40 - <=50 % 65 467 11,6% >50 - <=60 % 50 627 9,0% >60 - <=70 % 36 359 6,4% >70 - <=80 % 11 481 2,0% Total 563 940,4 100% Weighted Average LTV - Indexed 51.4%
Slide 11: Loan structure
Loan structure Q4 2020 Rate type Repayment 100% 100% 90% 90% 80% 80% 70% 61% 57% 70% 69% 67% 64% 64% 71% 72% 71% 60% Floating rate 60% 80% 81% 80% Amortising 50% Fixed rate 50% Bullet / 40% 40% interest only 30% 30% 20% 39% 43% 20% 31% 33% 36% 36% 29% 28% 29% 10% 10% 20% 19% 20% 0% 0% 19Q3 19Q4 20Q1
Slide 12: Underwriting criteria
Underwriting criteria Q4 2020 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 wit
Slide 13: 4. Covered Bond framework
4. Covered Bond framework alge fee: tly Nordea
Slide 14: Swedish covered bond framework
Swedish covered bond framework Q4 2020 • 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) • Registration • An issuing institution is require
Slide 15: 5. Macro
5. Macro 15
Slide 16: Nordic economies – strong rebound in sight
Nordic economies – strong rebound in sight GDP development Unemployment rate Comments GDP, forecasts from Economic Outlook January 2021 • After the dramatic setback in 2020 due to the coronavirus, there appears to be light at the end of the tunnel for 2021 Country (%, y/y) 2020E 2021E 2022E • While
Slide 17: Nordic rates – Nordics well-equipped to handle COVID-19 consequences
Nordic rates – Nordics well-equipped to handle the long-term consequences of COVID-19 Policy rates Public balance/debt, % of GDP, 2021E Comments • In December, Norges Bank brought forward its first rate hike by more than six months and now expects to start hiking rates in early 2022. However, due to
Slide 18: Households remain resilient
Households remain resilient Household debt Household savings Comments • Household savings have increased dramatically during the crisis, largely because of a decline in spending. Despite high debt levels, Nordic households’ strong finances are expected to support economic growth as soon as restricti
Slide 19: Nordic housing markets heat up
Nordic housing markets heat up House prices Households’ credit growth Comments • Contrary to expectations, house prices have increased to record-high levels in all the Nordic countries during the crisis. This is not least because of unprecedented expansionary fiscal and monetary policy in support of
Slide 20: 6. Further information
6. Further information alee fee tly Nordea
Slide 21: Nordea Hypotek – outstanding benchmark covered bonds
Nordea Hypotek – outstanding benchmark covered bonds Q4 2020 Breakdown by ISIN ISIN Currency Amount (SEKm) Maturity Coupon (%) 5532 SEK 54 634 2021-05-19 1,25 5531 SEK 86 515 2022-04-08 1 5533 SEK 59 350 2023-09-20 1,25 5534 SEK 67 750 2024-09-18 1 5535 SEK 39 550 2025-09-17 1 5729* SEK 53 700 2022-
Slide 22: Contacts
Contacts Investor Relations Andreas Larsson Randie Atto Head of Debt IR Senior Debt IR Officer Mobile: +46 709 70 75 55 Mobile: +46 738 66 17 24 Tel: +46 10 156 29 61 randie.atto@nordea.com andreas.larsson@nordea.com Group Treasury & ALM Cecilia Tannerfeldt Senior Treasury Manager Tel: +46 8 407 91