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: Nordea Q2 2023 Debt investor presentation
Nordea Q2 2023 Debt investor presentation Nordea Mortgage Bank Covered Bonds Cover pools 1&2 at a FES TT, ae
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 covered bond operations
Nordea covered bond operations Q2 2023 Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank Four aligned covered >» . > bond issuers with 4 . 4 complementary roles q A q di of NUD a . Legislation Norwegian Swedish Danish Finnish Cover pool assets Norwegian residential mortgages ‘
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) Cover Pool 2 (New)
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 14% 4% South Finland Cover Single - 13% Greater Pool 1 family Helsinki Tenant houses Area owner units 43% 52% 50% 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 51.5% LTV buckets Nominal (EURbn) % Residential Loans >0 - <=40 % 16.3 75% >40 - <=50 % 2.3 11% >50 - <=60 % 1.75 8% >60 - <=70 % 1.2 6% Total 21.5 100% Cover Pool
Slide 11: Rate type
Rate type 100% 100% 90% 90% 29% 29% 29% 29% 29% 29% 80% Capped rate 80% 70% 70% 60% Floating rate 60% Amortising Cover 95% 96% 96% 96% 96% 97% 50% 50% Pool 1 Fixed rate Bullet / interest only 40% 40% 70% 70% 70% 70% 70% 70% 30% 30% 20% 20% 10% 10% 0% 1% 1% 1% 1% 1% 1% 0% 5% 4% 4% 4% 4% 3% 22Q1 22Q2
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 Resilient economies are facing headwinds GDP development Unemployment rate n n 140 Tindex 2007Q1=100 GDP, level Index 2007Q1=100 140 % Unemployment % 135 135 10 10 130 | —Sweden [| 130 2 yo~ ° Norway WA 125 | —penmark —— 125 8 e 120 | —Fintand \e i 120 7 7 110 —\ 10 5 / —
Slide 18: Nordic economies
Nordic economies Higher for longer interest rates Policy rates 45 40 35 30 25 20 15 10 05 00 -05 1.0 % Policy rates n° 13 14° 15 «16 OW 8 1D «20 oD == Sweden == Norway == Denmark == Euro Area 23 24 20 15 10 0s 0.0 -05 “1.0 Public balance/debt, % of GDP, 2023E (IMF) 30 2023E Norway 25 ~ a, 20 & S S15
Slide 19: Households
Households Feeling the squeeze 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 175 250 250 15.0 — Sweden 15.0 Norway 225 225 2s —benmark 25 200 200 10.0 Finland 10.0 175 7s
Slide 20: Housing markets
Housing markets Higher interest rates imply downside risks on the housing market Housing prices Households’ credit growth 250 1 dex, 2007=100 Housing prices index, 2007-100] *°° 19.0 464 iy Households’ credit growth vyiyp 2° 3m moving average 25 125 225 225 10.0 10.0 200 7s 7S 175 5.0 5.0 25 25 150
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