Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (2021)
22 slides from Nordea Bank Abp's debt investor presentation, 2021
Slide 1: Nordea Eiendomskreditt Covered Bonds
Nordea Eiendomskreditt Covered Bonds Q2 2021 Debt investor presentation
Slide 2: Table of contents
Table of contents 1. In brief 3 2. Cover pool key characteristics 6 3. Asset quality 10 4. Covered bond framework 14 5. Macro 16 6. Further information 20 2
Slide 3: 1. In brief
1. In brief 3
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q2 2021 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 Eiendomskreditt – overview
Nordea Eiendomskreditt – overview Q2 2021 • A 100% owned subsidiary of Nordea Bank Abp • The purpose of the Issuer is to acquire and provide residential mortgage loans and finance its activities mainly through issuance of covered bonds • Loans are originated by Nordea Eiendomskreditt (NE) • Collater
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q2 2021 Cover pool summary Pool notional NOK 206.3bn Outstanding Covered Bonds NOK 92.7bn Cover pool content Mortgage loans secured by Norwegian residential collateral Geographic distribution Throughout Norway with concentration to urban areas Asset distribution 100% r
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q2 2021 Cover pool balance by loan category Cover pool balance by region Summer houses 3% Tenant owner units West 28% 19,7% South 5,1% North East 4,5% 62,2% Single family houses Mid 8,3% 69% 8
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan to Value (LTV)
Loan to Value (LTV) Each loan is reported in the highest bucket Q2 2021 Weighted Average LTV – Unindexed 49.7% LTV buckets Nominal (NOKm) % Residential Loans >0 - <=40 % 56 358 27,3% >40 - <=50 % 38 058 18,4% >50 - <=60 % 46 243 22,4% >60 - <=70 % 42 437 20,6% >70 - <=80 % 23 202 11,2% Total 206 298
Slide 11: Loan structure
Loan structure Q2 2021 Rate type Repayment 100,0% 100% 90,0% 90% 80,0% 80% 55,8% 53,7% 70,0% 70% 60,5% 61,0% 60,8% 62,3% 60,0% 60% 50,0% 98,3% 98,3% 98,8% 98,1% 98,0% 98,0% 50% 40,0% 40% 30,0% 30% 44,2% 46,3% 20,0% 20% 39,5% 39,0% 39,2% 37,7% 10,0% 10% 0,0% 1,7% 1,7% 1,2% 1,9% 2,0% 2,0% 0% 20Q1 20Q2
Slide 12: Underwriting criteria
Underwriting criteria Q2 2021 Regulation • Mortgages is regulated in "Boliglånsforskriften" which set requirements on borrowers' debt to income, rent sensitivity, instalments and loan to value. Affordability • Customers ability to service its commitment out of its cash flow/income is critical • Repa
Slide 13: 4. Covered Bond framework
4. Covered Bond framework alge fee: tly Nordea
Slide 14: Norwegian covered bond framework
Norwegian covered bond framework Q2 2021 • Legal framework • Financial Undertakings Act (Act. No. 17 of 10 April 2015, Norwegian: Finansforetaksloven) • Registration and independent inspector • A mortgage credit institution shall for each cover pool establish a register of loans, interest rate contr
Slide 15: 5. Macroeconomy
5. Macroeconomy alge fle tly Nordea
Slide 16: Nordic economies – resilient economies back on track
Nordic economies – resilient economies back on track GDP development Unemployment rate Comments GDP, forecasts from Economic Outlook May 2021 • After the dramatic setback in 2020 due to the coronavirus, the Nordic economies have almost fully recovered Country (%, y/y) 2020 2021E 2022E • Vaccines hav
Slide 17: Nordic rates – Nordics well-equipped to handle long-term consequences of COVID
Nordic rates – Nordics well-equipped to handle long-term consequences of COVID Policy rates Public balance/debt, % of GDP, 2021E Comments • Norges Bank now expects to start hiking rates in September this year, with a second hike likely in December. Policy rates in the euro area, Denmark and Sweden a
Slide 18: Households remain resilient
Households remain resilient Household debt Household savings Comments • Household savings have increased dramatically during the crisis, mainly due to a decline in spending. Despite high debt levels, Nordic households’ strong finances are expected to support economic growth as restrictions are lifte
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 due to unprecedented expansionary fiscal and monetary policy in support of hou
Slide 20: 6. Further information
6. Further information Habe foe tly Nordea
Slide 21: Covered bonds – outstanding volumes
Covered bonds – outstanding volumes Q2 2021 Breakdown by ISIN ISIN Currency Amount (NOKm) Maturity Coupon (%) NO0010758931 NOK 4 615 2022-06-15 1,08 NO0010759632 NOK 14 236 2022-06-15 FRN NO0010819717 NOK 18 550 2023-06-21 FRN NO0010843626 NOK 18 900 2024-06-19 FRN No0010873334 NOK 11 400 2025-03-19
Slide 22: Contacts
Contacts Investor Relations Andreas Larsson Maria Caneman 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 Tel: +46 10 156 50 19 andreas.larsson@nordea.com maria.caneman@nordea.com Group Treasury Ola Bladholm Chief Treasury Manager Tel: +
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